Climate Change

Management Approach

1. Set policies and targets to reduce greenhouse gas emissions to achieve carbon neutrality by 2050 in line with the international goals for limiting increase in average global temperature to no more than 1.5°C.
2. Set a working team for sustainable development to be responsible for developing plans, monitoring global and local climate change situations that affect sustainability, and reporting the results of the plan implementation to the Governance and Sustainability Committee and the Board of Directors.
3. Assess climate change risks, and identify support measures and operational guidelines to effectively reduce greenhouse gas emissions to achieve carbon neutrality.
4. Promote clean energy by using renewable energy from sunlight (ICHITAN SUNERGY) in Ichitan Green Factory in accordance with the guidelines of the Thailand Voluntary Greenhouse Gas Reduction Project (T-VER).
5. Create participation with stakeholders throughout the value chain to reduce negative environmental impacts.

In line with its commitment to cope with climate change, the Board of Directors has set a target to reduce greenhouse gas emissions to achieve carbon neutrality by 2050, and has assigned the Corporate Governance and Sustainability Committee and senior executives to oversee, define, and develop policies and guidelines for managing climate change. The working team on sustainable development is responsible for formulating plans and monitoring global and local climate change situations that have impacts on sustainability throughout the business value chain, and regularly reports the results of the plan implementation to the Corporate Governance and Sustainability Committee and the Board of Directors. In addition, the Company has conducted a comprehensive assessment of climate change risks and impacts to ensure that the Company has measures in place to appropriately and promptly cope with such risks. The working team on risk management is responsible for assessing risks from climate change situations together with the working team on sustainable development, and reporting to the Risk Management Committee quarterly.

However, the Company has divided its greenhouse gas management approach into 3 scopes: direct greenhouse gas emission (Scope 1), indirect greenhouse gas emission (Scope 2), and other indirect greenhouse gas emission (Scope 3). The operational framework is in line with the guidelines of the task force on climate-related financial disclosure (TCFD) through supporting projects and activities such as optimizing energy efficiency, improving production process efficiency, renewable solar energy project (ICHITAN SUNERGY), and project of efficiency management on eco-friendly transportation and distribution etc., as well as promoting all stakeholders to participate in driving operations to achieve long-term climate change goals.

Approaches to Air Quality Management

The Company places importance on controlling, preventing and reducing air pollution resulting from business activities, especially the production process that may have an impact on society and the environment. Therefore, the Company is committed to strictly elevating the control of air quality around the factory. Air quality is monitored and managed to meet the standards in accordance with the ISO14001:2015 international standard.

However, the Company has a wet scrubber system, which is used to treat polluted air from the production process, such as pollution, acid fumes, chemical fumes and dust from the air, etc., by using liquids to absorb pollutants from the air and using packing media to create a larger surface area for odor capture. It can be used with particles that are at risk of catching fire and exploding, and can treat air pollution in the form of particles, gases and vapors simultaneously, such as dust, fumes, and mist etc., with Smile Laboratory Co., Ltd. as the operator of the organization's environmental quality measurement.

Climate Change Risk Assessment

The Company is committed to addressing risks and opportunities related to climate change that may occur by assigning a working team on risk management to assess risks, impacts and opportunities related to climate change that may affect the business operation. The results of such risk assessment must be reported to the Risk Management Committee and the Governance and Sustainability Committee for approval of effective mitigation measures or operational guidelines to reduce greenhouse gas emissions.

Climate Change Impacts

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Measures and Guidelines for Coping with Climate Change Risks

Risk Issues	Coping Measures and Guidelines
Damage of Business Assets	Regularly assess location of the buildings, equipment, machinery and business assets that may be at risk from disasters (e.g. floods, fires, droughts, etc.).
Sudden Business Interruption	Monitor and assess risks, covering ESG aspects to plan for response, prevention and preparation in a timely manner, without causing business interruption, or causing the minimum possible impact.
Air Pollution	Optimize energy consumption, and invest in renewable energy technologies, as well as monitor performance to reduce greenhouse gas emissions to meet the set targets.
Lack of raw materials	Plan appropriate inventory management. Build good relationships with multiple suppliers to provide alternatives in case of shortages.
Occupational Health and Safety of Employees	Develop and revise safety policies and heat management guidelines for employees, and provide space for good ventilation and air circulation.