ThaiBev Sustainability

ThaiBev’s Sustainability 2025

Home / Governance & Economic

Supply Chain Management Governance

Supply Chain
Management

Supply Chain Management
Governance

Supplier
Screening

Supplier
Assessment

Capacity Building
Program
in Supply Chain
Management

In ensuring that all products and services are sourced using standardized and environmentally and socially responsible procurement processes throughout the value chain, ThaiBev enforces sustainable sourcing policies and upholds the highest procurement standards, while pursuing high-quality service in delivery, in addition to supplier assessment processes and supplier engagement activities. ThaiBev has developed strategies and systems to manage its supply chain and ensure business continuity, and to avoid negative economic, social and environmental impacts.

ThaiBev’s ESG program in supply chain management is structured with formalized framework and is governed by supply chain management strategy and sustainable sourcing policies and guidelines. ESG considerations are fully integrated into procurement, in line with the ISO 20400 Sustainable Procurement Guideline.

Click here to view ThaiBev’s Supply Chain Management Framework

Oversight of Sustainable Supply Chain Management Program

ThaiBev’s Sustainable Supply Chain Management Structure

Role	Responsibilities	Meeting Frequency
Board of Director (BoD)	Oversee ThaiBev’s procurement and sustainable supply chain management. Make decision and approve ThaiBev’s key raw material procurement and sustainable supply chain management-related issues upon receiving report from the GPC.	Quarterly basis
Group Procurement Committee (GPC)	Design ThaiBev's supply chain management strategy consists of five pillars: visibility, synergy, integrated risk management, centralized management, and standardization. Plan the raw material purchases of the companies in the plant groups aligned with the production plan and prevent procurement risks that may affect the production process of the companies in the plant group. Determine the purchase process and quality of raw materials by integrating sustainability factors into all aspects of our procurement process and requiring suppliers to comply with the Supplier Code of Practice and undergo strict supplier screening, which includes environmental, social, and governance (ESG) criteria and quality assurance processes. Selects quality raw materials for our productions through a socially and environmentally responsible procurement process in line with top global standards. Report the approval of the purchase of raw material to the Executive Committee on a quarterly basis.	Quarterly basis
President and CEO	Oversee ThaiBev's supply chain management strategy implementation and monitor the progress of supply chain management-related goals and targets. Assign responsibilities within ThaiBev functions to implement ThaiBev's supply chain management strategy.	Quarterly basis
Group Procurement Working Team	Execute the procurement operation from supplier screening to supplier performance evaluation. Identify procurement risks both in commercial and sustainability-related aspects and propose mitigative actions Implement ESG program in supply chain management and ensure supplier's compliance with ThaiBev's sustainability policies and guidelines. Identify significant suppliers (critical suppliers and high-risk suppliers) and implement supplier management and development plan Monitor and report market situations and procurement decisions to the Procurement Committees. Determine and propose category-specific sourcing strategy to the Group Procurement Committee	Monthly basis

OVERALL PROGRESS IN

Sustainability Commitments	Scope	2022	2023	2024	2025	Target	Target Year
Compliant Supplier Number of active suppliers complying with ThaiBev Supplier Code of Practice	ThaiBev Group	100%	100%	100%	100%	100%	Annually
Strategic Suppliers Having Supplier Code of Conduct Implemented Number of strategic suppliers having their own supplier code of conduct implemented to their tier 1 suppliers (ThaiBev’s non-tier 1 suppliers)	ThaiBev Group	75%	83%	88%	100%	100%	2030
ESG Risk Assessment Number of active suppliers undergo sustainability risk assessment	ThaiBev Group	100%	100%	100%	100%	100%	Annually
Critical Supplier Audited Number of critical tier 1 and non-tier 1 suppliers being assessed on site by third-party or ThaiBev auditors	ThaiBev Group	100%	100%	100%	100%	100%	Annually
Third-party Risk Assessment Number of active suppliers being assessed and examined on sustainability risks by a third party or using third-party risk database	ThaiBev Group	100%	100%	100%	100%	100%	Annually
Local Procurement Number of suppliers from which ThaiBev procures goods and services, by country of operation.	ThaiBev Group	96%	96%	97%	96%	95%	Annually
Responsible Sourcing Volume of key agricultural raw materials responsibly sourced i.e. malt and hops, sugar, broken rice, tea leaves, and palm oil.	Thailand	100%	100%	100%	100%	100%	Annually

MANAGEMENT INCENTIVE AND COMPENSATION

Management Level	Type of Incentive	Incentivized KPIs	Details
Executives Officers	Monetary	Sustainable supply chain	ThaiBev sets Corporate KPIs that reflect our CEO, executive, and employee compensation. ThaiBev’s Corporate KPIs relating to Sustainable supply chain. We define and categorize the criteria for achieving Corporate KPIs into 5-level. Compensation and bonuses will be allocated to relevant executives and employees, with related targets to 100% of strategic suppliers to have their own supplier code of conduct implemented by 2030.
Business Unit Managers	Monetary	Sustainable supply chain	ThaiBev sets Corporate KPIs that reflect our CEO, executive, and employee compensation. ThaiBev’s Corporate KPIs relating to Sustainable supply chain. We define and categorize the criteria for achieving Corporate KPIs into 5-level. Compensation and bonuses will be allocated to relevant executives and employees, with related targets to 100% of strategic suppliers to have their own supplier code of conduct implemented by 2030.

SUPPLY CHAIN MANAGEMENT

Group Procurement Shared Service

A shared-service approach enables ThaiBev to consolidate procurement across business units, fostering transparency and ensuring adherence to high ESG standards throughout our supply chain.Through this centralized model, ThaiBev enhances operational efficiency, streamlines processes, and strengthens oversight.

Sustainable Sourcing

ThaiBev is committed to sourcing responsibly by prioritizing suppliers who align with our sustainability values. By embedding ESG considerations into sourcing decisions, we aim to reduce Scope 3 GHG emissions and support sustainable agricultural practices. This pillar also emphasizes establishing partnerships with suppliers who are dedicated to lowering environmental impacts, promoting ethical practices, and enhancing resource efficiency.

Strategic Partnership Management

Recognizing the importance of strong supplier relationships, ThaiBev focuses on building long-term partnerships. We engage proactively with suppliers to drive sustainability improvements, provide development opportunities, and ensure alignment with ThaiBev’s goals for reducing emissions and advancing social responsibility. Such partnerships allow ThaiBev to create shared value and resilience across the supply chain.

SUSTAINABILITY OBJECTIVES

Scope 3 GHG Emission Reduction

ThaiBev recognizes that Scope 3 GHG emissions constitute the majority of our footprint, with Category 1 Purchased Goods and Services as the largest source. We mobilize supplier partnerships and embed carbon criteria into sourcing to cut emissions where they matter most, prioritizing materials with the highest intensity and contribution. Our approach is to build carbon footprint traceability using primary supplier data to track, verify, and manage the biggest hotspots. We require the Key Commodity Suppliers to disclose and execute reduction roadmaps, and link performance to sourcing decisions. These actions are the key enabler for ThaiBev to achieve Net-Zero, including Scope 3 GHG emissions by 2050.

ESG Compliance

ThaiBev embeds ESG into end-to-end procurement processes to ensure compliance and minimize value-chain impacts. The ThaiBev Supplier and Business Partner Code of Practice defines the minimum requirements expected of all suppliers. To enforce these standards, all suppliers undergo Supplier Screening, with Significant Suppliers subjected to comprehensive assessments against the ESG criteria, followed by corrective action implementation. ThaiBev strengthens supply chain traceability by improving the completeness and quality of supplier data across tiers, enabling earlier identification of ESG risks, targeted mitigation, and more transparent reporting that supports responsible sourcing and long-term resilience.

ISO 20400

Mr. Udomsak Rungcharusup, Managing Director of Pan International (Thailand) Co., Ltd., received ISO 20400 certificate for sustainable procurement from Mr. Jongrak Rojpalasatean, EVP of Management System Certification Institute (Thailand) (MASCI) operating under the umbrella of the Foundation for Industrial Development (FID).

Pan International (Thailand) Co., Ltd., a corporate purchasing and trading company for ThaiBev Group, has received ISO 20400 Sustainable Procurement certificate, marking ThaiBev Group as the first beverage company in Thailand to receive such certification. To be qualified for this certificate, a company’s process of procuring products and services from its critical suppliers and strategic suppliers with high procurement volume and/or supplying key materials has been evaluated.


Read More Information about Supply Chain Management in Sustainability Report 2025