CLIMATE CHANGE
Climate change presents a critical challenge to global businesses. To mitigate these impacts, the Company is firmly committed to driving down our operational greenhouse gas emissions and accelerating the use of clean energy. We have anchored this commitment through our Environmental Policy, Sustainability Policy, and Carbon Neutrality Policy and Commitment.
To ensure the effective reduction of our emissions and reach our goals of Carbon Neutrality by 2040 and Net Zero by 2050, we have appointed a Greenhouse Gas Management Committee. Led by senior executives, the committee is directly responsible for setting policies, developing actionable strategies, and continuously tracking performance.
Structure of the Greenhouse Gas Management Committee
Duties of the Greenhouse Gas Management Committee
- Set meeting agendas, conduct all relevant activities, and maintain systematic records.
- Review and define targets, policies, strategies, and carbon neutrality management plans to ensure integration with Company operations.
- Communicate the importance of greenhouse gas reduction under the Carbon Neutrality Management Plan within the organization, across the value chain, and to stakeholders.
- Monitor and review implementation to ensure performance is consistent with targets.
- Periodically review and improve policies, plans, and indicators to align with the business context, current standards, and recommendations from verification and stakeholder engagement.
To strictly monitor our progress, we initiated a corporate GHG inventory in 2022, covering Scope 1, 2, and 3 emissions for our Amata City (Rayong) plant and Bangkok Head Office,with certification from the Thailand Greenhouse Gas Management Organization (TGO).
By 2025, we upgraded our carbon accounting to the internationally recognized ISO 14064-1:2018 standard, expanding the scope to cover all facilities—Amata City (Rayong), Laem Chabang (Chonburi), Phitsanulok (Phitsanulok), and Bangkok (Head Office). Furthermore, in 2025-2026, the Company proudly earned the ISO 14068-1:2023 certification for Carbon Neutrality. This strategic direction reflects the Company's intent to strengthen operational resilience, manage climate-related risks, and support a transition toward more sustainable and low-carbon operations.
Strategy
Near-Term Strategies (2025-2030)
- Transitioning factory vehicles and internal logistics fleets to EV or NGV to reduce fossil fuel consumption and lower CO₂ emissions from on-site operations and product transportation.
- Strengthening controls to minimize greenhouse gas losses from cooling and refrigeration systems.
- Expanding the use of renewable energy, particularly solar power, to increase the share of clean electricity in operations.
- Improving energy efficiency across production processes and utilities through continuous operational improvements and technology upgrades.
- Advancing green procurement practices to integrate circular economy principles and promote environmentally responsible sourcing.
Long -Term Strategies (2030-2050)
- Transitioning all internal vehicles and on-site logistics to cleaner-energy alternatives to eliminate direct emissions from internal transportation.
- Strengthening energy resilience through smart energy management systems and energy storage solutions to support efficient and stable use of renewable power.
- Promoting climate ambition across the supply base by encouraging key suppliers to adopt net-zero targets and emissions reduction programs.
- Advancing low-carbon logistics through collaboration with partners that operate on carbon-neutral or low-emission models.
- Expanding sustainable and green procurement practices across all major categories of materials and services.
Target
The Company has designated 2024 as the base year for its greenhouse gas reduction initiatives, stipulating the following targets for Scope 1, 2, and 3 emissions:
- Short-term Target (< 5 years): A 34% reduction from the base year by 2030.
- Long-term Targets (> 5 years): A 72% reduction from the base year by 2040 (Carbon Neutrality), and a 90% reduction from the base year by 2050 (Net Zero).
To ensure the successful realization of these set targets, the Company mandates continuous performance monitoring and comprehensive annual evaluations.
Carbon Neutrality and Net Zero Pathway
Result
| Scope | Unit | 2023 | Baseyear 2024 | 2025 |
|---|---|---|---|---|
| Scope 1 | tCO2e | 1,940 | 1,655 | 1,918 |
| Scope 2 | tCO2e | 2,215 | 2,530 | 2,138 |
| Scope 3 | tCO2e | 32 | 29,709 | 22,288 |
| Total GHG Emissions | tCO2e | 4,187 | 33,894 | 26,344 (-22%) |
Our total GHG emissions have decreased by more than 22% against our 2024 base year. This overall reduction is primarily attributed to an increased proportion of clean energy utilization, specifically solar rooftop installations, along with a decline in export volumes due to lower sales. However, Scope 1 emissions increased due to higher refrigerant refills. To mitigate this specific variance, the Company has incorporated a targeted management strategy into its short-term plan.
Climate Change Risk
According to the 2025 Enterprise Risk Management (ERM) assessment, climate change directly impacts our supply chain risk profile, particularly in chili raw material procurement. This climate-induced disruption poses a risk of losing sales opportunity from existing and new customers. Furthermore, potential non-compliance of products with EU regulatory requirements, such as the Carbon Border Adjustment Mechanism (CBAM), could lead to increased operational costs associated with carbon tax obligations.
Consequently, we have assessed the potential impacts of climate change by simulating the following scenarios:
| Physical Risk | ||
|---|---|---|
| Climate-related risks | Impact (Medium to Long Term) | |
| Acute | Drought | The quantity of chili is insufficient for production demand due to climate change, drought, water scarcity, or a decrease in agricultural yields, resulting in the company being unable to produce enough products to meet orders. |
| Transition Risk | ||
| Climate-related risks | Impact (Short Term) | |
| Policy and Legal | Carbon price (Carbon Tax) - EU regulatory requirements eg. CBAM | This impacts the company's competitiveness, both in terms of increased operational costs from paying carbon taxes or complying with environmental regulations, as well as risks from international trade barriers, especially since the company's main markets are in European and Western countries. |
To adapt to climate change and mitigate the impacts of drought, the Company initiated the 'Drip Irrigation System for Chili Farmers' project in 2024. The project successfully reduced unnecessary water usage and increased crop yield per rai by up to 60%. The Company plans to expand this project further in 2026.