Climate Change

Management Guidelines

1. Establish policies and set targets for reducing greenhouse gas emissions, with the goal of achieving Net Zero Emissions by 2050, in line with international goals to limit global average temperature increases to no more than 1.5 degrees Celsius.
2. Establish a sustainable development working group to develop plans and monitor global and local climate change situations impacting sustainability, and to report on progress against those plans to the Corporate Governance and Sustainability Committee and the Board of Directors.
3. Assess climate change risks while establishing mitigation measures and operational guidelines for the effective reduction of greenhouse gas emissions, working towards net-zero emissions.
4. Establishing the Carbon Footprint for Organization (CFO) and Carbon Footprint of Products management systems in line with international standards, covering the entire business chain. This supports the identification of greenhouse gas (GHG) emission sources, providing critical data for developing strategies and mitigation measures for sustainable climate change mitigation.
5. Promote clean energy by using renewable solar energy (ICHITAN SUNERGY) in the beverage production process at the Ichitan Green Factory, in line with the Thailand Voluntary Emission Reduction Program (T-VER) standards.
6. Raising awareness and engaging stakeholders across the value chain to reduce negative environmental impacts.

Driven by a commitment to addressing climate change mitigation, the Board of Directors has set a target to reduce greenhouse gas emissions and achieve net-zero emissions by 2050. The Board has also mandated the Corporate Governance and Sustainability Committee, along with senior management for overseeing, establishing, and developing policies and guidelines for climate change management. A sustainable development working group will create plans and monitor global and local climate change developments impacting sustainability across the business value chain, and regularly report on progress to the Corporate Governance and Sustainability Committee and the Board of Directors.

In addition, the Company has joined the Thailand Greenhouse Gas Management Organization (TGO) to contribute to reducing greenhouse gas emissions in the industrial sector and support Thailand’s long-term goal of achieving Net Zero Emissions, demonstrating the Company’s commitment to environmentally responsible business practices. This includes systematically managing, monitoring, and evaluating greenhouse gas emissions, as well as participating in projects and activities that promote emission reductions throughout the value chain. The Company also conducts a thorough assessment of climate change risks and impacts, and has implemented appropriate mitigation measures. A risk management working group assesses these risks in collaboration with the Sustainable Development Working Group, and reports findings to the Risk Management Committee quarterly.

The Company has categorized its greenhouse gas management approach into three scopes: direct greenhouse gas emissions (Scope 1), indirect greenhouse gas emissions (Scope 2), and other indirect greenhouse gas emissions (Scope 3). This framework aligns with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and is implemented through supporting projects and activities such as improving energy efficiency, optimizing production processes, the Ichitan Sunergy solar energy project, and environmentally friendly transportation and logistics efficiency initiatives. The Company also promotes the participation of all stakeholders in achieving its long-term climate change targets.

Climate Change Risk Assessment

The Company is committed to proactively managing risks and opportunities associated with potential climate change impacts. The Risk Management Working Group is tasked with assessing these risks and opportunities, including those specifically related to climate change, and their potential effects on business operations. The findings of this risk assessment will be reported to the Risk Management Committee and the Corporate Governance and Sustainability Committee for approval of mitigation strategies and effective greenhouse gas emission reduction plans.

Impact of Climate Change

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Climate Change Risk Mitigation Measures and Guidelines

Risk Issues	Mitigation Measures and Guidelines
Asset damage	Regularly assess the location of buildings, equipment, machinery, and business assets for potential natural disaster risks (e.g., flooding, fire, drought, etc.).
Sudden business halt	Monitor and assess ESG risks to plan for and prepare for potential impacts in a timely manner, avoiding business disruptions or minimizing their effects.
Air Pollution	Enhance energy efficiency and invest in renewable energy technologies, and monitor performance to reduce greenhouse gas emissions to meet established targets.
Raw Material Shortage	Plan and implement appropriate inventory management. Establish good relationships with multiple raw material suppliers to ensure alternative options are available in case of shortages.
Occupational Health and Safety of employees	Develop and improve safety policies and guidelines for heat management for employees, including ensuring well-ventilated workspaces.