Environmental Dimension

Management Approach

TTA

Energy is a significant cost in driving business and production processes of various industries. However, energy consumption creates climate change impacts from greenhouse gas emissions that are receiving global attention which are globally recognized and addressed by Sustainable Development Goals 7 (SDG 7) and 13 (SDG 13) aimed at reducing the impact of energy consumption and greenhouse gas emissions. Therefore, the Company has set a goal to reduce electricity consumption by 2 percent from the previous year.

In 2023, the Company carried out plans for office space management, allocating workspace to maximize benefits. For example, it relocated employees in smaller departments or teams to work in the same area as those in larger departments or teams, while ensuring there was still sufficient open space. Considerations were given to the environment, suitability, and convenience of employees' workspaces, per relevant criteria. As a result of these space management plans, electricity consumption decreased. The Company used a total of 736,344 kilowatt-hours, a reduction of 10.92 percent compared to 2022. This achievement met the goal of reducing electricity consumption by 2 percent from the previous year. However, due to an increase in the unit cost of electricity by the Metropolitan Electricity Authority, the Company—located in a commercial building whose electricity costs are managed by its administration—experienced a higher-than-normal increase in electricity expenses. Consequently, electricity costs in the past year increased by 30.18 percent.

TTA’s Electricity Consumption

TTA's Fuel Consumption

Thoresen shipping

Thoresen shipping recognized the importance of energy-efficient energy use and is committed to execute in align with the Company's environmental policy as well as comply with relevant regulations and guidelines constantly. The company established the Marine Operations and Technical Team (MOD) technical team to provide technical support and oversees all environmental-related operations. Moreover, the company also collects all environmental-related data from sailings which is in accordance with the International Convention for the Prevention of Pollution from Ships (MARPOL Annex VI).

Thoresen Shipping has installed LED lighting systems on all its ships to reduce energy consumption. Work has been done to optimize the hull paint system to increase propulsion efficiency even further. Additionally, Thoresen Shipping's cargo ships use Alpha Lubricator, a system employed to control the amount of lubricant used in large machinery cylinders. Furthermore, the company has installed equipment to enhance ship speed in the ship propeller shaft, allowing the ship to sail faster while maintaining the same engine speed, thereby conserving energy, and reducing fuel consumption. Moreover, the company has created the Onboard Management Manual for Engine Power Limitation (EPL), a certified management manual for energy conservation, endorsed by the Shipowners’ Association.

PMTA

PMTA has invested in Baconco Company Limited (Baconco) which specializes in the agricultural chemicals industry. Baconco's primary focus on developing, producing, and distributing agrochemical products in Vietnam and other countries. The products presented by Baconco include NPK Compound Fertilizers, Single Fertilizers, Compound Fertilizers, and Foliar. In addition, Baconco also sells pesticides and insecticides in Vietnam, so the production and use of these products may have negative impacts on the environment due to high consumption of various energy involved. To mitigate these adverse effects, PMTA has implemented an energy management strategy that includes conducting periodic energy audits to monitor, track and evaluate the company's energy usage annually.

Furthermore, PMTA enforces measures aimed at reducing energy consumption. For example, PMTA requires the proper maintenance of electrical equipment and machinery to ensure full efficiency and also conducts campaigns promoting turning off all electrical equipment when not in use and setting the air conditioning temperature in workspaces with no lower than 25 degrees Celsius. These are pivotal measures in managing the company's energy consumption.

PHC

The company operates a food business branded "Pizza Hut," in which energy is among the main costs of various operational activities, including product manufacturing, raw material distribution, and product transportation. Such use of electricity and fuel contributes to the emission of greenhouse gases. In 2023, the costs were affected by an increase in the prices of electricity and fuel, thereby influencing production and transportation expenditures. Recognizing the importance of efficient energy management, the company initiated the following strategies:

1. Increasing the efficiency of electrical energy use

   The company developed a manual to guide employees in the efficient use of equipment and electrical appliances in the store, including instructions on maintenance, as well as proper procedures for turning on and off electrical appliances. Regular training sessions were conducted to ensure employees have a comprehensive understanding of these guidelines. Additionally, external companies were engaged to carry out preventive maintenance on a range of electrical equipment and appliances, such as air conditioning units and refrigeration systems.

   In 2023, the company conducted a feasibility study of a project to install solar cell power generation systems at different branches for solar electricity production. The challenge faced was the rather substantial cost associated with installing the production system, coupled with a lengthy payback period from savings on electricity costs. Moreover, constraints arose due to the duration of the building lease agreement with the lessor and the permission needed from the lessor for the installation of a solar energy production system at the respective locations.

2. Increasing the efficiency of fuel use

   The company collaborated with partners to facilitate transportation services, distributing raw materials from the warehouse to branches across the nation. These partners were given instructions to plan an efficient logistics system, aligning transportation schedules with the distribution plan for the timely supply of raw materials to the branches. Operational guidelines were developed for branch employees, providing them with a framework to efficiently manage and distribute raw materials in each cycle, ensuring alignment with sales forecasts. Additionally, the Company conducted regular training sessions to consistently enhance employees' understanding of the operational procedures.

   In 2023, the company has explored the use of electric motorcycles from affiliated companies for product deliveries. Challenges included the limited availability of charging stations, not covering all areas, and the relatively lengthy charging time. The project is currently under study and development, with an aim to further enhance the efficiency of electric motorcycles in collaboration with affiliated companies.

PHC's short-term goals center on assessing feasibility based on economies of scale by maximizing the use of alternative energy. This involves deploying electric motorcycles, implementing solar cell power generation systems, and studying new, more compact, and modern branch formats for future openings. Aligning with the global supply chain resources of Yum! Brands Inc. allows PHC to optimize energy usage in various equipment and electrical appliances. Additionally, the company can further enhance energy efficiency by selecting and replacing equipment in the store with more energy-efficient alternatives, including LED bulbs, air conditioners, and refrigeration systems. These measures not only contribute to environmental sustainability but also empower the company to manage production costs for maximum operational efficiency.

AIM

As part of business operations, AIM, a prominent provider of comprehensive water resource management, is actively pursuing opportunities to expand its services both within Thailand and across the region. The company places high priority on the efficient use of energy resources. Currently, AIM has integrated solar cells within its office premises, aiming to reduce reliance on externally purchased electricity and to achieve lower electricity costs in the long run.

In 2023, due to limited office space, the company was able to harness solar energy to produce approximately 6 kilowatts per month for office operations, which led to a monthly reduction in electricity costs of around Baht 5,000. In the future, AIM, as a solar power generation business operator, intends to expand the initiative by implementing similar systems in other subsidiary companies.

AIM has also expressed interest and invested in alternative energy sources. The company has invested in an electric ferry service within the Bangkok canals, starting operations at Phadung Krung Kasem Canal to reduce pollution emissions and to be more environmentally friendly. Additionally, AIM is developing renewable energy businesses such as solar power for hospitals, including Samitivej Sukhumvit Hospital, Sri Rayong Hospital, Samitivej Chonburi Hospital and others, to promote and enhance the use of alternative energy instead of conventional energy sources in Thai society.

Mermaid

The solar cells installation in July 2023 is a significant sustainability initiative in the use of renewable energy leading to a noticeable reduction in electricity costs from US$ 62,041 in 2022 to US$ 57,290 in 2023. This 7.5 percent decrease in cost can be attributed to both the solar installation and operational adjustments, including the closure of certain office wings during periods of lower business activity.

Mermaid may consider installation of additional solar cells to increase use of renewable and reduce reliance on purchased electricity that uses fossil fuels, a major contributor to carbon emission. Install energy-efficient inverter technology air conditioners, automatic on/off LED lighting systems and solar-powered streetlights in parking areas. These actions aimed at reducing purchased electricity dependence will underscore the company's commitment to economic savings and environmental sustainability. The target is to reduce energy intensity by 5 percent from 2023 data.

Management Approach

TTA

TTA has set a target to reduce water consumption within the head office by at least 5 percent from the previous year.

In 2023, the Company carried out plans for office space management, allocating workspace to maximize benefits. For example, it relocated employees in smaller departments or teams to work in the same area as those in larger departments or teams, while ensuring there was still sufficient open space. Considerations were given to the environment, suitability, and convenience of employees' workspaces, per relevant criteria. As a result of these space management plans, water consumption decreased. The Company used a total of 1,842 cubic meters of water, marking a decrease of 14.37 percent compared to 2022. This achievement surpassed the goal set for reducing water use by 5 percent from the previous year and resulted in water cost savings of Baht 6,180.

Water Management Quantity Derived from TTA’s Operations

Thoresen shipping

Thoresen shipping remains to operate in accordance with international regulations and standards for efficient management of water resources on board ships. In addition to replenishing fresh water from the destination country's public utilities or purchasing fresh water from suppliers in the country of arrival. Seawater is also desalinated using Freshwater Generators installed on every vessel. This involves boiling seawater in a vacuum pressure system to produce steam which then condenses into freshwater droplets when cooled by the cold seawater and is then conveyed to freshwater tanks on board. This water system is treated with Ultraviolet (UV) and filtered before being used for daily activities on board ships.

The company has installed Ballast Water Treatment (BWT) system on all 24 ships which is a high-quality and internationally certified equipment. Therefore, it is assured that the ballast water management process of the Thoresen shipping is efficient and capable of reducing the spread of alien species that can be carried in ballast water from one region of the world to another. This ensures that the discharge of ballast water by Thoresen shipping's ships will not have an adverse impact on the environment or ecology, and biodiversity.

Additionally, the company developed a plan for the maintenance, inspection, and troubleshooting of ballast water treatment (BWT) equipment to comply with the standards established by the International Maritime Organization (IMO) and various relevant agencies. This initiative is aimed at ensuring that BWT control and management equipment can operate with maximum efficiency.

PMTA

PMTA focuses on wastewater management with an involvement of external contractors who have been granted a permit to manage waste generated from business operations. However, the company still manages water usage by ensuring that it is used efficiently and effectively in line with its purposes. The company also controls water usage by locking or closing valves when not in use, maintaining and replacing equipment and pipes if are detected a water leak, and monitoring daily water usage of each department to ensure its water efficiency. PMTA will record the water meter used in the production processes each day. The water usage will be estimated to meet the daily target set accordingly, which will improve the efficiency of water management for the production process and reduce excessive water usage which will lead to a reduction in water costs. Nonetheless, PMTA also places a wastewater treatment system and carries out regular monitoring, tracking, and constant reporting of the management of waste and wastewater to the government.

In 2023, PMTA has a measure to control the water usage of employees and contractors. This measure will help in monitoring, inspecting, and fixing water leaks from pipes. Moreover, there is a record of the amount of water meter used which is divided by type of water use for daily production. The daily water usage is estimated to control an operation in align with determined standards. In cases of excessive water usage beyond the set target, the relevant department or production unit will be notified via email alerts.

PHC

PHC set a short-term target to maintain water quality assessment standards at least 95 percent of the total inspected branches (inspect all branches)

PHC gives a priority on water resource management and water treatment from business operations. The company believes that an effective water management can reduce water usage which will result in reducing water bills and cost of purchasing raw water for production and also decreasing an amount of wastewater and associated management costs. PHC provides equipment or fixtures that reduce water usages such as pedal faucets, and faucets with air bubbles, and also provide a handy man to assist in maintenance and repair of equipment and fixtures. Moreover, the employees at all branches will be trained to enhance their understanding and knowledge of managing water and wastewater. Before the opening of the store, the employees will undergo training in a proper usage of water as outlined in the curriculum. This training covers potential issues that may arise in grease traps or PVC pits, along with prohibited practices and various methods for cleaning.

Wastewater from all branches of PHC are treated before discharging into public spaces. It is conducted by installing grease traps to prevent contaminating water before discharging water into the department store’s integrated pipe system, where the business is located. Store staff are responsible for scooping up any grease on the water surface and removing it before discharging the treated water into the pipeline system of the department store. The water without grease will flow into the central collection system. The quality of the water will be checked randomly by an external public health agency on a regular basis. A local authority will be hired to pump the grease trap tank to remove any leftover grease every 3 months. Furthermore, all PHC stores must pass the annual water utilized analysis which will be tested for Coliform and E. Coli along with chemical analysis which result must comply with the legal standards. For the wastewater, it must be treated through a septic tank according to the sanitary system standards to meet the building’s effluent standards and in line with PHC’s store inspection standards.

AIM

For the water resource management business, AIM is considered a comprehensive water management and public utility company. The main services of the company are reducing non-revenue water for the Provincial Waterworks Authority and Metropolitan Waterworks Authority. In addition, the company has expanded its business to industrial wastewater treatment and river or canal management. AIM is committed to continuously and sustainably growing its business and contributing to society and the environment throughout its business operations. This includes environmental management through two perspectives: water and wastewater management, and energy management. The details are as follows:

1. Innovation in biotechnology for industrial wastewater treatment in collaboration with the Industrial Estate Authority of Thailand.
2. The project aims to improve the efficiency of water production and reduce Non-Revenue Water by utilizing advanced technologies that require less space and energy. This will be achieved through collaboration with the Provincial Waterworks Authority and Metropolitan Waterworks Authority to create a mobile drinking water production system.
3. Improve the capacity to treat polluted canals for increased cleanliness and decreased accumulation of disease-causing pathogens.

Mermaid

Mermaid's commitment to environmental stewardship is evident in its comprehensive water management strategies, aligning with MARPOL regulations. The company implements advanced practices in treating and utilizing water resources to reduce ecological impact. This includes equipping its fleet with water treatment systems specifically for ballast water.

In addition to its maritime operations, Mermaid also focuses on sustainable water usage in its onshore facilities, which include offices, warehouses, and workshops in various countries. These onshore operations rely on purchased water sources and maintain backup supplies for critical activities, such as diving training.

Although Mermaid's offices currently do not have water recycling systems, the company is actively exploring options to enhance water sustainability in these locations. It's imprtant to note that the focus here is on managing tap water usage, rather than drinking water.

One of the problematic issues that are globally concerned is the world’s climate change. Currently, all countries are encountering high variation in seasonal patterns, sea levels rise, increasing severe heat waves or prolonged droughts and floods. Thailand also recognizes this issue and has joined the United Nations Framework Convention on Climate Change (UNFCCC). Thailand also ratified the Kyoto Protocol and participated in the Paris Agreement, in which the parties made the pledge and collaborate to control the world’s greenhouse gas emissions. In 2022, Thailand participated in the United Nations Climate Change Conference or COP27 by emphasizing on the goal of the Glasgow Climate Pact with an aim to reduce the use of coal and ineffective fossil fuels. Thailand is also implementing to achieve the Paris Agreement, which aims to limit the global temperature increase to not more than 2 degrees Celsius compared to the pre-industrial era (1900 A.D.) and to attempt to limit the temperature increase to not more than 1.5 degrees Celsius. Additionally, there is an agreement of establishment of a compensation fund for Loss and Damage. This fund is established by the major countries who mainly emit pollution to be responsible in assisting, mitigating, and compensating for other countries, particularly the developing countries. It focuses on the developing nations because these countries have limited opportunities to access sufficient resources to address the loss and damage as well as lack of ability to adapt to such climate crisis.

In Thailand, the National Determined Contributions (NDC) have been determined for three areas including 1) energy and transportation, 2) waste, and 3) industrial processes. It aims to decrease the emission of greenhouse gases by 20-25 percent by 2030. The Group will contribute to responsible business practices to help combat climate change. As a result, the Group has a comprehensive policy on environmental responsibility in its business operations. This includes incorporating measures to address climate change throughout the supply chain, using natural resources, energy, and water sustainably and properly managing waste, in line with the Thailand’s goals. By doing so, the Group aims to be a leading investment firm in Asia, promoting sustainable growth, and minimizing negative impacts on the environment.

Risks from changes in weather conditions to the operations of the Group

Greenhous Gas Emissions Management Approach

The Group strongly and constantly emphasizes on sustainable utilization of natural to maximize benefits and minimize negative impacts on the environment through using the effective and eco-friendly technologies. Currently, the Group has a policy and mitigation plan to reduce its greenhouse gas emissions responsibly, with clear targets and strategies for both short-term and long-term as well as develop innovative solutions to incorporate in its operations. Furthermore, the Company encourages its affiliates in determining greenhouse gas reduction measures and effectively managing energy in accordance with regulations of that industry to achieve the greenhouse gas reduction targets and serve as a part of society to mitigate the global issue.

Management Approach

Thoresen Shipping

Thoresen Shipping has set a continuous target every year to reduce the amount of carbon dioxide (CO₂) emissions in accordance with the standards of IMO.

Thoresen shipping continually and closely follow up the environmental regulations related to operations and assigns the specialized team to prepare an implementation plan in consistent with the regulations and standards for maximizing efficiency and effectiveness in the management approach. With the intention to improve the ship engine and manage an environmental-friendly shipment service, Thoresen Shipping concentrated on a mitigation of CO₂ emissions by setting a target to reducing CO₂ emissions to a higher standard. The company has set a target to reduce CO₂ emissions by approximately 5 percent in 2023 and an additional 2 percent per year in 2024 and 2025. The company aims to develop operational procedures that are efficient and beneficial to stakeholders, customers, and the environment with a strong emphasis on environmental factors.

Furthermore, Thoresen Shipping is planning to conduct a feasibility study to assess the possibility of limiting its CO₂ emissions to comply with the International Maritime Organization (IMO) regulations by adopted an approach to collaborate with relevant agencies, develop engine maintenance plans, and inspect the waste management system's condition. Thoresen Shipping is also focusing on raising environmental awareness among its crew by conducting various activities such as waste sorting and reducing plastic usage during shipments.

In addition, Thoresen Shipping also focuses on reducing CO₂ emissions from shipboard engines, which is considered a major contributor to greenhouse gas emissions. The company has installed engine modification equipment to reduce fuel consumption and lower CO₂ emissions while prioritizing safety and optimizing vessel speed and responsiveness to customer needs. The company has also switched to Very Low Sulfur Fuel Oils (VLSFO) to decrease greenhouse gas emissions which demonstrates its commitment to environmental stewardship. Thoresen Shipping's efforts to reduce air pollution enhance its credibility, bolster its reputation, and improve its competitiveness in the current business climate where organizations increasingly value environmentally conscious partners.

In 2023, the environmental regulations of the International Maritime Organization regarding the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Index (CII) for controlling air pollutants came into effect on 1 January 2023 onwards.

Currently, the company's fleet has undergone technical improvements to reduce the emission of CO₂ per the engine power and speed of the vessels. Presently, all vessels of Thoresen Shipping meet the standards set by the Energy Efficiency Existing Ship Index (EEXI). Among the total of 24 vessels, 8 can sail at their maximum speed based on the characteristics of the vessel, while the remaining 16 vessels operate with a speed limitation according to the Engine Power Limitation (EPL). Regarding the Carbon Intensity Index (CII), Thoresen Shipping's fleet has been ranked within levels A to C.

The company has successfully reduced carbon dioxide emissions from 340,487 tCO₂ in 2022 to 303,009 tCO₂ in 2023, representing an 11 percent reduction. Moreover, Thoresen Shipping remains dedicated to maintaining standards and enhancing the technical efficiency of its fleet to ensure optimal service delivery to customers.

PHC

PHC is aware of and alert to the global warming issue, which is becoming increasingly important to customers. As part of the food business, PHC is willing to support and encourage greenhouse gas mitigation activities. According to the operation, PHC found that greenhouse gases are generated from the refrigerant, which includes air conditioners and refrigerators in material storage, electricity consumption in the cooking process, and other energy facility usage. The main reason for lowering greenhouse gas emissions and saving energy is a proper selection of operation equipment. As a result, PHC identified the specifications of air conditioners that can decrease greenhouse gases within the Pizza Hut restaurant in order to manage the greenhouse gas level. In addition, the company decided to install the air conditioners that use R32 as refrigerant at new branches of Pizza Hut. Moreover, PHC has also cooperated with Daikin Industries (Thailand) Co., Ltd. (Daikin) to inspect refrigeration system within stores for energy saving, efficiency planning, and accurate use of the air conditioning system. PHC realizes that an appropriate selection of operating equipment with the highest energy saving can preliminarily help reduce GHG emission.

Mermaid

The data collected from Mermaid shows the primary Scope 1 Carbon Dioxide equivalent (eCO₂) contribution to be from ships in the Marine Department. Mermaid's ships typically use Marine Gas Oil (MGO) for bunker fuel and when the fuel is combusted it emits carbon. Using the type and quantity of fuel, the eCO₂ was calculated using a carbon conversion factor, as per standard formulae.

Mermaid's business has doubled over the last five years. Leading to more vessel movement and greater use of MGO as bunker fuel. Hence, to compare the year-on-year carbon emission, eCO₂ data was normalised with business revenue to determine the eCO₂ intensity for a more representative measure of carbon emission trend.

In 2023 the data is for 5 Mermaid owned and operated vessels. The previous 4 years were for only 2 vessels and the eCO₂ intensity trend has been favourable with a clear downward trend of a 46 percent reduction from 2019 to 2022. The 5 vessels for 2023, including the 2 vessels for 2019 to 2022, and 2 other vessels in non-operational and under Joint Venture partner operations. Mermaid’s current programs that lead to the reduction of eCO₂ intensity includes:

• Optimization of current vessel engine usage through procedural changes and hardware modifications.
• Encouragement to customers with sustainability ‘Green’ value proposition to purchase and supply lower sulphur fuel and adopt environmentally friendly practices. Low sulfur fuels typically have a sulfur content of less than 0.05 percent.
• Install new ship engines with biodiesel (Methanol) and hybrid battery packs.
• Enhance hardware for wear and tear efficiency.
• Employ more propulsion hardware to minimize excessive maneuvering and fuel usage for dynamic positioning in the open seas and oceans.

In addition, Mermaid may consider installing a Remote Fuel Monitoring System (RFMS) with Smart Meters and Artificial Intelligence (AI) enabled fuel optimization.

The new baseline with the expanded fleet data is the year 2023 and the target for next year is a further 5 percent reduction in eCO₂ intensity. In line with the UN global goal of achieving interim 45 percent reduction by 2030 and net zero by 2050.

All shipping data is compiled by DNV and hence is of reliable 3rd party scrutiny. Hence, no further verification of the provided data was conducted this time.

Mermaid commitment to environmental sustainability extends to the management of its energy consumption and the associated Scope 2 greenhouse gas emissions, which result from purchased electricity. The company's efforts to mitigate its environmental impact through efficient energy use and the integration of renewable energy sources.

Purchased electricity is primarily used in the various offices and onshore operations like warehouses and workshops.

The eCO₂ intensity for 2019 to 2021 was inconsistent and ranged from 6.5 to 7.0. There was a dip in the 2022 purchased electricity usage while revenues doubled. Since in 2023 with the installation of solar panels commissioned in July the purchased electricity usage has decreased and the intensity at 1.62 will be used as a baseline for future comparison.

Air Quality

Mermaid Maritime Group is committed to improving air quality by effectively managing and reducing emissions of nitrogen oxides (NOx) and sulfur oxides (SOx) resulting from its fleet operations.

The nitrogen oxides (NOx) and sulfur oxides (SOx) emission intensities are calculated data of air pollution from the exhaust of ships, as per standard formulae. The data for the last 4 years has been inconsistent and ranging from 9-12 tons/US$ million. The data for 2022 was not available. In 2023, the company see a down trend by over 50 percent when compared to previous years, however the calculations could be different. Hence, the 2023 emission intensity will be used as baseline for a 5 percent target reduction for 2024.

In addition to Mermaid’s current and new programs to reduce eCO₂ intensity, consider installing scrubbers and sensors in the exhaust stacks to clean and reduce in-situ measured air pollution.

The operation of the Group which has a diverse business group inevitably creates waste in many forms such as solid waste within the office building, industrial wastewater, ballast water, food scraps/waste, plastic waste, chemicals, and other forms of waste. If the Group does not provide efficient waste management, it can lead to negative impacts on the environment, community, and society surrounding the area where the business operates, and the cost of waste disposal may increase as well. With this regard, the Group has recognized a significance of waste management by focusing on the efficient use of resources which is align with the environmental policy. It is conducted to maximize the efficient use of resources throughout the value chain, and constantly reduce the amount of waste generation. Furthermore, the Group still support and encourage the employee to manage waste within organization by circular economy principle and 5Rs practical guideline.

• Reduce (use as little as possible, as much as necessary)
• Reuse (use of resources more than once)
• Recycle (reprocessing of waste materials for use in new products)
• Recovery (waste converted to obtain new energy *in case resources cannot be recycled.)
• Repurpose (waste converted for a new purpose)

The Company has a waste management monitoring and assessment system. The waste will be checked on its classification, storage, transportation, and disposal with the recorded amount of waste generated and waste directed to disposal as well. The Company also arranges training/campaigns/posts announcements throughout the area or at garbage bins within the office to raise employee’s awareness of an importance of efficient use of resources. This helps create a correct understanding of waste management for employees and constantly checking their knowledge. Thus, the waste management monitoring and assessment system mentioned above can assist and facilitate the utilization of limited resources for maximum value, reducing the cost of waste management of the Company. Besides, the Company can bring waste such as paper boxes, used paper and used oil that passed the sorting process for selling or adding value in other ways.

Management Approach

TTA

TTA has set a target to reduce non-hazardous waste (paper) by 5 percent from the previous year.

In 2022, the Company implemented a project to reduce non-hazardous waste (paper) usage. The project's outcomes revealed that the quantity of paper purchases increased compared to the year 2021 due to the easing of the COVID-19 situation. Employees returned to work in the main office at full capacity, in addition there was an increase in the number of subsidiaries and affiliated companies. As a result, the set target was not achieved as planned.

In 2023, the Company continued its efforts to reduce non-hazardous waste, specifically paper usage, building upon the initiatives implemented in 2022. The project focused on enhancing employee awareness and promoting behavior change to use paper more responsibly, with an emphasis on avoiding one-sided printing. Various measures were implemented, including training through electronic document formats, and online testing. In addition, the Company donated two-sided used papers to the Mirror Foundation to change "paper" into "new story books" in the New Story Book Project, reinforcing the awareness of the value of natural resources. The project yielded positive outcomes in 2023, with the Company's orders for non-hazardous waste (paper) reduced to 1,510 kilograms. This reduction, amounting to 3.5 percent compared to 2022, not only resulted in cost savings but also contributed to the Company's commitment to sustainability. Although the set target was not fully achieved, the Company remained dedicated to its non-hazardous waste (paper) reduction initiatives in 2024.

New Storybook Project

In 2023, TTA undertook a project to collect two-sided used papers, which was subsequently donated to the Mirror Foundation to transform the paper into storybooks. These storybooks were then distributed to children in small, underserved schools located in remote areas. The total weight of the two-sided used papers collected amounted to 1,379 kilograms, resulting in the production of 55 new storybooks (with each book requiring 25 kilograms of paper). This initiative is regarded as a promotion of a culture of giving and aims to instill the invaluable principles of utilizing natural resources wisely.

Root-Cause Organizational Waste Management Project

The Company practices waste separation based on the 5Rs concept to utilize existing resources efficiently and reduce waste through reducing, reusing, and recycling. The objective of this project is to decrease the overall waste within the office. The Company has prepared waste bins for each type of waste, strategically placed in different areas to facilitate recycling, in addition to designating areas for collecting recyclable waste, contributing to ongoing waste management.

In 2023, the Company began weighing the separated waste and found that the non-hazardous waste amounted to 3,979 kilograms. Public relations campaigns were conducted to encourage employees to reduce usage and generate less waste of all types, fostering the first step towards a waste-free lifestyle. Everyone can easily start reducing waste by avoiding its creation in the first place. If employees become aware of the amount of waste they generate, they can change behaviors that negatively impact the environment. For instance:

• Reusable water bottles: Carrying a reusable water bottle everywhere not only promotes good health but also reduces the number of plastic bottles significantly.
• Eco-friendly bags: Refusing plastic bags and using reusable bags when making purchases not only for household items but also for various needs.
• Opting out of paper statements and flyers: Contacting banks or service providers to receive electronic documents instead of paper ones.
• Only using biodegradable trash bags: Read the label carefully to ensure that garbage bags are 100 percent biodegradable, as some brands are partially biodegradable.

Upcycling Project: Transforming Plastic Water Bottles into Monk Robes

TTA carried out its third consecutive annual project, TTA Zero Waste, to promote employee awareness about the significance of effective waste management. In 2023, TTA collected and donated 2,650 used PET plastic bottles contributed by its employees. Over the course of two years, TTA has provided a total of 4,302 PET plastic bottles to Wat Chak Daeng, Samut Prakan Province. These bottles are repurposed into robe cloth for monks, with each set of robes crafted from 60 bottles. This initiative contributes to a reduction of approximately 6.48 tons of carbon dioxide emissions.

Thai People without E-Waste Project

In 2023, the Company participated as a partner in the "Thai People without E-Waste" project, aiming to collectively manage electronic waste (E-Waste) correctly. For 2023, TTA initiated a mission to raise awareness about the issues and impacts of electronic waste, involving the creation of public relations materials and the establishment of waste collection points. Employees were encouraged to collect electronic waste from both their homes and within the office, depositing it into the prepared E-Waste collection boxes. The collected electronic waste would then undergo a recycling process correctly, without leaving any scraps or landfilling under the ‘zero e-waste to landfill’ approach. This initiative is considered a good starting point for creating awareness and proper electronic waste management at both organizational and national levels.

The Company invited employees to join in discarding electronic waste starting in October. By the end of December 2023, the Company successfully processed a total of 15 pieces of electronic waste, weighing 9,000 grams. This effort resulted in a reduction of carbon dioxide emissions equivalent to 10.23 kgCO₂, comparable to planting one tree.

PMTA

In the operation of PMTA's chemical business for agriculture, the Company will hire contractors with a permit to handle hazardous waste and manage the waste generated from its business activities in Vietnam both hazardous and non-hazardous waste in accordance with the laws and regulations of Vietnam.

PMTA requires waste sorting following various regulations and proper management of waste transportation. Additionally, there have been wastewater treatment systems and air pollution control installations with an aim to control a generation of harmful pollutants or maximize their treatment, since 2019. PMTA has launched a project to reuse used rubber as fuel which can reduce the cost of fuel purchase for the company and also reduce the emissions of sulfur gas that can affect the environment. In addition, the company still focuses on waste management and regularly carries out inspections, monitoring, and reporting its waste management practices to the government.

PHC

In the food and beverage group, PHC recognizes an importance of waste management, starting from taking care of the use of resources worthwhile. The company always keeps in mind that when there is an efficient management of production costs and resources, the amount of waste generated will be reduced which result in an increase of the profitability of each operating branch. Additionally, customers will also obtain fresh, high-quality, and safe food for consumption. PHC has taken several actions to reduce the amount of waste generated as described as follows:

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Aside from the previous mentioned practices, PHC also implements the 4Rs principles into its internal operations as described below.

• Reduce: Minimize waste by focusing on planning of product ordering. Raw materials will be stored in a First-In First-Out (FIFO) arrangement by considering the time period that the items are delivered to the warehouse, then they will be the first ones to be used. This will prevent spoilage and decrease waste from excessive ordering or not utilize the items that close to their expiration date.
• Repair: Lower the costs of repairing equipment and replacing parts by having the shop staff (handyman) performs initially repair of the damaged device.
• Refuse: Shops and their staff follow the guidelines established by the corporation. They fully utilize products while avoiding repetitive items that may be hazardous to consumers and prefer to purchase food that is packaged in paper boxes rather than in styrofoam containers.
• Reuse: Utilize everything to its fullest potential such as using both sides of an A4 paper to ensure maximum value.

Presently, the branches of PHC do not have a waste sorting system in place. However, the waste sorting operation has already started at the Head Office, where the HR administrative staff are responsible for overseeing it.

Mermaid

Mermaid’s waste generation has been primarily onboard ships and onshore operations. It has both hazardous and non-hazardous waste. The 2019 to 2021 period shows a total waste generation ranging from 491 to 595 tons, a steady increase. The 2022 data shows almost a 3-fold increase to 1,458 tons and a 2-fold increase in revenue. The 2023 data shows waste generation halving from the previous year.

Given the inconsistency of the data no targets are set for this year until further analysis in 2024. Regardless Mermaid strictly adheres to the International Convention for the Prevention of Pollution from Ships (MARPOL) requirements for waste management on vessels, segregating solid and liquid waste into 5-6 categories and disposing of it at sea, under legal requirements specific to geographic locations. And ashore to authorized waste collectors for incineration or landfill, or by handing it over to customers for disposal as per contractual agreements. In this regard, related documents and compliance with ISO14001 standards are carried out.

Onshore-generated hazardous waste, including paint, bulbs, and plastics, is segregated from non-hazardous waste like paper and cardboard. Notably, hazardous materials like plastics are recycled and disposed of through authorized companies, while non-hazardous items such as mattresses and calendars are donated to orphanages for reuse, and used chairs are sold to employees at discounted rates for reuse, with the remaining disposed of in municipal landfills.