Thai Beverage Public Company Limited


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Environmental: Managing our impacts

Climate change has a significant impact on the environment and resources globally and nationally, and is due in large part to agricultural and industrial operations. ThaiBev also contributes to this impact, while being affected by the climate change as well. The patterns of such climate change, ranging from flooding to drought, directly and indirectly affect ThaiBev’s business operations. The recent El Nino resulted in an unusually long drought. Consequently, plantations were affected, including some crops that are ThaiBev’s major raw materials, such as sugar cane for the production of sugar - leading to increases in the price of sugar. It is therefore necessary for ThaiBev to be proactive in managing and mitigating potential climate change risks.

ThaiBev needs to find solutions to these problems and encourage the participation of stakeholders in solving various issues in order to ensure the least possible negative impact on the environment in both the short and long term.

Because ThaiBev understands this impact to our business we intend to minimize the emission of greenhouse gas (GHG) from our production process.

Remark :
• ThaiBev changed its reporting method of environmental operating results from 3 product groups into a consolidated number.
• In 2015, ThaiBev choose to disclose water withdrawal rather than water consumption. 2014 Energy and emission factors have been updated for more accuracy.

Water

Water is an essential resource for human beings, as well as for agricultural and industrial activities. As a beverage manufacturing company which uses water as a main ingredient, ThaiBev understands its significance, and has a comprehensive water management system. We have integrated water management strategies into our business processes, ranging from:
1. Water risk assessment of suppliers; in order to promote awareness throughout the industry value chain.
2. Efficient water management in production and compliance, ensuring efficient public water usage, and treatment of water before discharging into public sources; and
3. Joint activities with local communities government sector and our employees.
ThaiBev promotes water management and seeks to minimize our negative environmental and social impact to all parties. Risk management in water resources and water management for the production process are key responsibilities of ThaiBev, and is continuously implemented.

Risk Management of Water Sources

It is widely known that currently the volume of rainfall and water in natural water sources has been uncertain, mainly because of volatile climate conditions, resulting in the shortage of water and flooding in some areas of the country. Since ThaiBev realizes the importance of such issue, the Risk Management Committee has determined that water sources management must be seriously considered and driven at the organizational level in order to concretely perform activities and ensure that the company be able to continue the production based on responsibility for the community and social contribution.

In 2015, ThaiBev established a working team for sustainable water resources management, primarily in the spirits business group. The working team is responsible for analyzing problems, planning for water sources management and water usage in both the short and long term, reporting sustainable development operating results to the committee on a monthly basis, and presenting the results to the Risk Management Committee on a quarterly basis.

Over the past period, ThaiBev evaluated the water shortage risk through assessment of its facility locations using the Global Water Tool (GWT) of the World Business Council for Sustainable Development (WBCSD) and the Aqueduct of World Resources Institute (WRI). In 2015, ThaiBev also conducted a Water Resources Review (WRR) by additionally studying data from the government sector and closely monitoring the accumulated volume of water in sources such as dams, wetlands, and rivers, as well as evaluating the effects of our facilities’ water usage on the stakeholders who rely on the same water sources. The objectives are to analyze and estimate the prospective volume and evaluate the sufficiency of water for the production at present and in the future. We also consider rules, legal conditions, as well as water-related expenses which are subject to change afterwards. Such information is then utilized to evaluate the risks and impact on operations in order to facilitate the decisions of the Risk Management Committee about each business group’s investment in water sources for the future.

To achieve the aforementioned objectives, we have implemented the following activities to mitigate the risks to water resources:

The Spirits Business Group
A plastic lining was installed at Sura Bangyikhan Co., Ltd., with a total construction cost of over Baht 17 million. This was done to reserve water for production (60 consecutive days) should there be any risk from flooding or contamination from chloride. Sangsom Co., Ltd, and Red Bull Distillery (1988) Co., Ltd. invested a total of over Baht 19 million in drilling groundwater wells, to ensure water reserves for prevention of water shortages. This enables the production process of the facilities to carry on during the dry season without affecting the water used for agricultural purpose around the facilities.

The Beer and the Non-Alcoholic Beverages Business Group
As a result of the assessment of the Global Water Tool, the Beer and the Non-Alcoholic Beverages Business Group are located outside the stress area. ThaiBev continues to evaluate its water risk by comparing the water usage with the volume of water supply to mitigate the risk of water shortages for production. Because some facilities such as Oishi Trading Co., Ltd., and Sermsuk Public Company Limited are located in industrial estates, the emergency water supply plan is managed by such industrial estates. Meanwhile, some facilities have established plans and evaluated the water usage volume since before the facilities were constructed, such as breweries, in addition to maintaining guidelines on keeping water reserves in storage tanks and reservoirs that can be used in a water shortage for at least 90 days

without affecting the production process, and importantly, not affecting the surrounding community if drought occurs. Moreover, we also utilize the ‘Global Water Tool’ to evaluate the locations of our major suppliers’ facilities to identify if there are any potential water risks. If any partner is at risk, ThaiBev will communicate and organize a meeting with the particular partner, while providing advice and jointly developing measures to mitigate the risk in an appropriate manner as mentioned in procurement and sourcing topic.

Picture of the reservoir lined with plastic sheets at the Sura Bangyikhan Co., Ltd.

Water management of the production process

Apart from risk management in relation to water sources, ThaiBev also manages its water resources efficiently, fairly, and sustainably based on good governance principles. ThaiBev emphasizes efficient water usage for all business activities and encourages all stakeholders to do the same. The activities in 2015 were as follows:

1. Managing water usage from natural sources to maximize the quality and efficiency of the production process. For example, the Red Bull Distillery (1988) Co., Ltd. invested in establishing a water quality improvement system to convert rain water in its reservoir into high quality water for fermentation and distillation of white spirits. Another example is Sangsom Co., Ltd. in Kanchanaburi province, which invested in the installation of a reverse osmosis (RO) water purification unit, with a capacity of 10 cubic meters/ hour, in order to produce boiler feed water, resulting in a lower amount of water being blown down from the boiler.

2. Participating in a project on sustainable water resources management in the food industry for export. In 2015, every business group of the Company which consists of 3 distilleries, i.e., Sura Bangyikhan Co., Ltd., Red Bull Distillery (1988) Co., Ltd., and Sangsom Co., Ltd. in Nakhon Pathom province; 3 breweries, i.e., Beer Thai (1991) Public Company Limited, Beer Thip Brewery (1991) Co., Ltd., and Cosmos Brewery (Thailand) Co., Ltd.; and the facility of non-alcoholic beverages business group, namely, Oishi Trading Co., Ltd., participated in the “Project to Manage Water Resources Sustainably through Water Footprint” initiated by the Federation of Thai Industries. Moreover, Fuengfuanant Co., Ltd., participated in the “Pilot Project for Water footprint assessment by the Water Institute for Sustainability of the Federation of Thai Industries with Fuengfuanant Co., Ltd.” in order to evaluate and calculate reference values of the water footprint. The results will be further applied for efficient management and usage of water resources of the facilities, i.e., reducing water usage, the volume of wastewater, and production costs.

Sources of water supply for ThaiBev include surface water, ground water, municipal water supplies and rainwater. The total volume of water withdrawn by source during 2013-2015 is shown in the table below.

Total volume of water withdrawal by source during 2013 – 2015

Water Withdrawal Souces	Unit	2013	2014	2015
Surface water	Cubic Meter	14,487,505	14,132,214	14,189,350
Ground water	Cubic Meter	2,620,764	3,707,780	4,224,647
Municipal water supplies	Cubic Meter	1,963,118	1,931,783	2,002,513
Rainwater	Cubic Meter	77,000	108,900	102,850
Total water withdrawal by source	Cubic Meter	19,148,387	19,880,677	20,519,360*

Remarks :
* Within KPMG’s limited assurance scope (page 124)

Remarks:
Surface water, drawn from rivers or ponds, and rain water are measured by internal flow meters. There is a process to calibrate internal flow meters which will be completed in 2016. For ground water and municipal, water usage is reconciled to invoice.

Water reused and recycled during 2013 – 2015

Water Type	Unit	2013	2014	2015
Reused water	Cubic Meter	225,270	781,917	1,000,296
Recycle water	Cubic Meter	749,615	1,308,280	1,322,022
Total volume of reused and recycled water	Cubic Meter	974,885	2,090,197	2,322,318*

Remark:
Data of volume of reused and recycled water based on the calculation and meter.

Considering the operating results during 2013 – 2015, the total volume of water that was reused and recycled increased by 11 percent compared to 2014 and represents 11 percent of total water withdrawn in 2015.

4. Cooperating with the government sector, participating in government campaigns, and organizing activities for employees and communities to raise awareness of water conservation and the importance of water management. ThaiBev is determined to support optimization of water usage as well as to improve water quality. Such determination enabled Fuengfuanant Co., Ltd. to receive an award for excellence in river preservation and restoration, and United Winery and Distillery Co., Ltd. to receive an outstanding award for river preservation and restoration from the Ministry of Industry in 2015.

ThaiBev operates its business with care and concern for the environment and society, especially in relation to water resources, as evidenced by our recognition of water as an organizational risk. Our facilities participated in the Water Footprint Project, and efficiently managed water resources in the production process with the 3Rs Principle. Moreover, we considered feedback from our stakeholders, in the process realizing interesting and important issues for consideration in parallel with our business strategy, management plan and activities with our employees, the government sector, the private sector, and the community. As a result, over the past year, ThaiBev was able to reduce the ratio of water withdrawal to its total production volume. We will continue to engage stakeholders on sustainable water management.

Employees and local communities restoring water sources

ThaiBev management received awards for the river preservation and restoration

In 2016, Beer Thai (1991) Public Co. Ltd and Sermsuk Public Company Limited were awarded to be a model of Industrial establishment due to their excellent efficiency management of water and reduction of water withdrawal (surface water and ground water) from Water Institute for Sustainability the Federation of Thailand Industrial

Beer Thai (1991) Public Co. Ltd

Sermsuk Public Company Limited

As of date 31 december 2015

Energy

Since energy is essential to our production process and value chain, ThaiBev recognizes the critical role of energy management in line with its policy of energy and environmental conservation through the implementation of Total Productive Maintenance (TPM) for maintenance of tools, machines, and equipment to save energy. In addition, the energy management system (ISO 50001), previously established at Sura Bangyikhan Co., Ltd. and Athimart Co., Ltd., was extended to Beer Thai (1991) Public Company Limited1, Beer Thip Brewery (1991) Co., Ltd.1, Sura Piset Thiparat Co., Ltd.2, and Mongkolsamai Co., Ltd2. This expansion was certified in 2015 and ensures that ThaiBev has reviewed and supports the improvement of energy conservation performance. Moreover, in 2015, various research projects have been undertaken for the purpose of continuous process improvement for energy efficiency within all subsidiary companies as described below.

1. Installation of energy saving fan for evaporative condensers project
Beer Thai (1991) Public Company Limited has installed fan blades made from fiber-glass reinforced plastic (FRP), which are light and strong, in place of aluminum blades. As a result, the energy required for operating the fan was reduced by 20 percent from 2014.

2. Improvement of boiler fueled by biogas from wastewater treatment project
This project involved the installation of a once-through boiler at Beer Thip Brewery (1991) Co., Ltd., which can use biogas fuel directly in the wastewater treatment process in 2015. It allows biogas to be utilized for production of steam, thereby saving energy.

3. Reduction of electricity for reverse osmosis system project
This initiative involved installing a Variable Speed Drive (VSD) in the high pressure pump at Oishi Trading Co., Ltd. to control the water pressure flowing into the RO system at 45 cubic meters per hour, instead of adjusting the feed valve. As a result, the energy loss due to the valve adjustment of the motor was reduced by 53,293 kWh or Baht 191,854 yearly, compared to 2014.

¹ISO 50001 has been certified by TÜV NORD Thailand Ltd.
²ISO 50001 has been certified by ACM Services Company Limited.

Effective use of energy and promoting alternative energy

In addition to improving energy efficiency and preserving energy consistently, ThaiBev also realizes the replacement of fossil energy with renewable energy in alignment with the government’s policy so as to promote alternative energy and reduce impacts of climate change. The said concept has been applied to the design and the installation of the alternative energy system, such as biogas-fuelled wastewater treatment system, and replacement of fossil fuel with C₂⁺ energy. Moreover, various projects have continuously been developed as follows:

1. Generation of electricity from excess biogas project
The waste from alcohol production, or distillery slop, can be used in a biogas production system. In this connection, Thai Beverage Energy Co., Ltd. (TBE) is investing in a project to generate electricity from excess biogas at our facilities in Ubon Ratchathani and Buriram provinces. The main goal is to use biogas from the fermentation of distillery slop in place of heavy fuel oil in steam production for the distilleries and electricity generation. Each facility can generate approximately 6 - 8 million kilowatts of electricity per year, which is sufficient for internal use, while the remaining electricity can be sold to the Provincial Electricity Authority, with the annual income of approximately Baht 20-30 million. With regard to environmental management and the participation of general public in the project on generation of electricity of the two facilities, there have been some activities undertaken prior to commencing projects as follows:

1) Conducting an environmental & safety assessment (ESA) report - studies were conducted on environmental impacts, to evaluate and analyse potential hazards from operations, and identify preventive measures and solutions for the reduction of the environmental impacts, such as air quality, noise pollution, and water quality. Moreover, the studies included the establishment of a safety management system, i.e., occupational health and safety. These two measures were approved by the ESA Committee, Department of Industrial Works. In addition, the said measures and safety management system were adhered to throughout the construction and operation phases.

2) Preparing an environmental checklist based on the Code of Practice (CoP) which was submitted to the Energy Regulatory Commission (ERC) – This included ensuring preventive measures and solutions, and adherence to a standard checklist. With regard to the participation of general public, ThaiBev held a “public meeting” prior to commencing construction so as to allow all stakeholders to give their opinions from the first stage of the project, as well as to collect their comments and concerns, and set up additional measures as attached to the environmental checklist.

The next project relating to the generation of electricity is to be implemented at our facility in Khon Kaen province. The Company is conducting a review of the environmental and safety assessment (ESA) as of January 2016.

Biogas holder, part of the electricity generation system of Thai Beverage Energy Co., Ltd. in Buriram province

2. Combination of solar hot water and heat recovery from - air compressors project
Sermsuk Public Company Limited has installed solar hot water (evacuated tubular collector) covering an area of 1,125 square meters, together with recovery heat from the air compressor at 4 facilities. The project is able to reduce the usage of fuel oil for steam production by 147,000 liters per year, compared to 2014.

Solar Roof at Sermsuk Public Company Limited

3. Utilization of alcohol by-products with fuel oil in the boiler project
By-product alcohol from the distilling process cannot be used in spirits production. This project is focused on burning the by-product alcohol in boilers together with fuel oil. ThaiBev is carrying out this project at Sangsom Co., Ltd. in Nakhon Pathom province, Red Bull Distillery (1988) Co., Ltd. in Samut Sakhon province, Simathurakij Co., Ltd. in Nakhon Sawan province and Sura Bangyikhan Co. Ltd. The project has resulted in the reduction of fuel oil use in the 4 facilities by 2,070,630 liters per year, and savings of Baht 27,953,744 per year. The Company plans to further apply this project with other ThaiBev subsidiaries.

Steam Incinerator fueled by concentrated slop at Sura Bangyikhan Co., Ltd.

4. Zero discharge project using incineration system
This system starts by bringing the remaining distillery slop from the distilling process into the evaporator which increases concentration prior to proceeding to the incinerator. The output of burning the distillery slop is thermal energy in the form of high-pressure steam which is used to drive a steam turbine for production of electricity. The energy is primarily used in the electricity facility, while the remaining energy is sold to the Provincial Electricity Authority. In addition, the remaining low pressure steam from the steam turbine is sent to the alcohol production process. The condensation from the evaporation of distillery slop will be treated and returned to the cooling tower for the next process. ThaiBev partially use alternative energy replacing heavy fuel oil in 2015 by 35 million liters, saving 477 million baht.

Energy Sources
Energy for the production process of ThaiBev can be categorized into 2 groups:
1. Direct energy refers to energy sources that are owned or controlled by the company and comprises:
• Renewable energy - namely biogas, concentrated slop and by-products alcohol at 90 and 70 degrees
• Non-renewable energy - namely, heavy fuel oil, natural gas, C₂⁺biomass, bituminous, benzene or gasoline and diesel fuel.
2. Indirect energy refers to energy purchased from other organizations and comprises electricity and steam.

Total energy consumption including renewable energy, non-renewable energy, electricity and steam purchased during 2013 – 2015

Energy Sources	Unit	2013	2014	2015
Direct energy
Renewable energy	Megajoule	992,255,022	1,102,885,120	1,133,578,400
Non-Renewable energy	Megajoule	3,244,264,679	3,111,601,864	3,158,522,783
Indirect energy
Electricity	Megajoule	862,925,483	877,757,843	922,282,355
Stream purchased	Megajoule	6,007,716	5,901,397	4,327,938
Total energy consumption	Megajoule	5,105,452,900	5,098,146,224	5,218,711,475*

Remarks:
* Within KPMG’s limited assurance scope (page 124)
• Energy consumption = the amount of fuel used x the estimated heating value of each fuel type. Conversion factors (heating values) used to convert quantity of fuel consumed to energy are taken from the “Thailand Energy Situation” report by the Department of Alternative Energy Development. Specific supplier energy factors are provided by supplier (for C2+, natural gas, coal and fuel oil) or based on our actual practices.
• The total amount of energy consumption = the total amount of fuel consumption (non-renewable energy + renewable energy) + the total amount of electricity and steam purchased. Unit of measurement: MJ per month

As of date 31 december 2015

Emissions and Air Pollution

Air pollution Given the rising global and local concern air pollution, ThaiBev still adheres to air-quality management of dust particles, nitrogen dioxide (NO2) and sulfur dioxide (SO2), emitted by its facilities as required by Notification of Ministry of Industry on Prescriptions of the Content values of Air Contaminants Emitted from the Factory B.E. 2549. ThaiBev has installed air pollution reduction systems including:

• Gas washers to reduce the quantity of sulfur released in gas and erosion of the steam generator.
• Oxygen trims to control the quantity of oxygen in combustion to ensure complete combustion without releasing excess air.
• Bag filter cyclones and wet scrubbers to filter dusts, gas, and small particles released from boilers’ stack.

ThaiBev has implemented a standardized air quality control system in line with the United States Environment Protection Agency (U.S. EPA). This system helps to monitor and measure emissions, and ensure that any emissions from our facilities have no negative impact on surrounding communities.

Emissions Aside from committing to air quality management, we also place emphasis on measuring our product and organization carbon footprints which stakeholders expect to be increasingly applied to ThaiBev’s subsidiary companies. Furthermore, we encourage our suppliers to pay attention to their own greenhouse gas emission reduction and carbon footprints through more effective application of the data collection methodology from the Life Cycle Assessment (LCA) and Thailand’s Greenhouse Gas Management Organization (Public Organization)’s carbon dioxide calculation methodology for our value chain.

Boiler stacks of our facility at Sura Bangyikhan Co., Ltd.

Operator of air pollution control department is measuring air quality at the chimney of Beerthip brewery (1991) Co.,Ltd.

ThaiBev’s products that have obtained the ‘Carbon Footprint for product’ label from Thailand’s Greenhouse Gas Management Organization (Public Organization)

Remark:
*Application and registration request for Carbon Footprint Label have been submitted to Thailand Greenhouse Gas Management Organization. The approval uses given to ThaiBev on January 13, 2016.

In 2015, six affiliated companies gained approval to use the ‘Carbon Footprint for Organization’ Label from Thailand Greenhouse Organization, namely:
1. Simathurakij Co., Ltd.
2. Kankwan Co., Ltd.
3. United Winery and Distillery Co., Ltd.
4. Thai Beverage Energy Co., Ltd. (Prachinburi branch)
5. Thai Beverage Energy Co., Ltd. (Khonkaen branch)
6. Thanapakdi Co., Ltd.
And also has subsidiaries in the process of Carbon Footprint for Organization certification, such as Beerthai public (1991) Co.,Ltd., Cosmos brewery (Thailand) Co.,Ltd. and Beerthip brewery (1991) Co.,Ltd. and we plan to expand in 2016 our carbon footprint activities by participating in the “Carbon Footprint for Organization Program” with the Federation of Thai Industries and the Thailand Greenhouse Gas Management Organization (Public Organization) at Oishi Trading Co.,Ltd. and Sermsuk Public Company Limited in order to apply the guidelines to our greenhouse gas management and greenhouse gas emission levels report as shown in the table.

Total Green house gas emissions including Direct emission (Scope 1) and Indirect emissions (Scope 2)

Greenhouse gas emissions	Unit	2013	2014	2015
Direct emission (Scope 1)	Tonnes CO₂ e	228,947	245,763	256,565*
Emission from fuel used	Tonnes CO₂ e	228,947	238,649	250,142
Emission from refrigerant	Tonnes CO₂ e	N.A.	7,114	6,423
Indirect emission (scope2)	Tonnes CO₂ e	139,646	142,035	149,144*

Remarks:
* Within KPMG’s limited assurance scope (page 124)
• Our Greenhouse Gas Emission table reports the following gases: carbon dioxide (CO₂), methane (CH₄) and nitrogen dioxide (NO₂). Calculating greenhouse gases emission from fuel used (per page 40) and refrigerants is accomplished by measuring carbon dioxide equivalents using the emission factors from the Carbon Footprint for Organizations (CFO) guidelines from the Thailand Greenhouse Gas Management Organization (Public Organization) and described in the GWP source (the IPCC 4th assessment report)
• Emission factors for renewable energy sources from distillation process waste products are calculated by a consultant from the Thailand Greenhouse Gas Management Organization (Public Organization).

In 2015, ThaiBev’s greenhouse gas emissions were higher than in the previous year due to an increase in energy consumption resulting from increasing production. Nevertheless, the specific greenhouse gas emissions decreased by 5 percent, from the 2014. This ratio decrease met our target for 2015. This demonstrates our ability to increase our production capacity while at the same time reducing our environmental impact.

Greenhouse Gas Emission Reduction
In 2015, ThaiBev reduced greenhouse gas emissions by more than 640,000 metric tons of CO₂ e. This is the result from development of energy efficiency and resources by means of energy reduction – namely, utilization of alcohol by-products or biogas in replacement of heavy fuel oil, production of solar hot water for the boiler, generation of electricity from excess biogas, and applying the 3Rs principle: Reduce, Reuse, and Recycle, to our packaging in order to reduce resources usage and greenhouse gas emissions concurrently.

As of date 31 december 2015

Effluents and Waste

From our stakeholder engagement survey conducted in 2015, effluents and waste management were issues highlighted. ThaiBev has an internal system of manage these issues and strives to continuously engage our stakeholders to improve our performance in this regard.

Effluents Management

ThaiBev focuses on effluents management and water ecology preservation. We have a wastewater treatment system to manage wastewater from our production processes that is tailor-designed to each individual facility. Moreover, the effluent from our treatment system complies with the quality standards stipulated by the Ministry of Industry Notification No. 2, (B.E. 2539), issued under the Factory Act, B.E. 2535 (1992), regarding industrial sewage regulation. ThaiBev utilizes the following two technologies:

1. The use of anaerobic wastewater treatment systems, such as an Up-Flow Anaerobic Sludge Blanket system (UASB system) and an Internal Circulation reactor (IC reactor);

2. The use of aerobic treatment systems, such as an activated sludge system, an aerated lagoon and wastewater stabilization ponds.

ThaiBev continuously reports effluent BOD to the government sector via the Online Pollution Monitoring System monitored by the Provincial Industry Offices, under the Department of Industrial Works. Moreover, a monthly report of pollutants emitted from the facilities, comprising air and water pollution, is submitted to the Department of Industrial Works every 6 months. ThaiBev manages its treated wastewater from its facilities in the following ways:

1. For facilities located outside industrial estates, there are 2 types of licenses. The first type does not allow treated wastewater discharge (Zero discharge). Qualities of treated wastewater shall meet the quality standards as strictly stipulated by the Department of Industrial Works and further treat to meet proper recycling qualities. This treated wastewater is used in 2 specific activities which are gardening in the facilities and supplying the cooling water system in power plants. The second type is allowed to discharge treated wastewater by the government offices. In this case, the wastewater shall be treated to meet the quality standards as strictly stipulated by the Department of Industrial Works prior to discharge.

2. For facilities located in industrial estates, the wastewater is treated to meet the relevant industrial estate’s quality standards and discharged to central wastewater treatment system of each industrial estate.

In this regard, ThaiBev’s volume of effluent is shown in the below table.

Aerated ponds of wastewater treatment system

Internal Circulation reactor

Observation pond

Total volume of effluents by destination during 2013 - 2015

Water discharge by destination	Unit	2013	2014	2015
River	Cubic Meter	5,680,389	6,012,679	7,656,912
Waste water treatment system of industrial estate	Cubic Meter	844,290	1,123,751	1,198,874
Total volume of water discharge	Cubic Meter	6,524,679	7,136,430	8,855,786*

Remark:
Effluent refers to treated wastewater which meets water quality standards required by law prior to discharging into public water sources.

ThaiBev rigorously and consistently monitors and controls the quality of water from its wastewater treatment systems to ensure its quality remains higher than the standard prescribed by the Department of Industrial Works.

Water discharge by quality in 2015

Parameter	Unit	Standard target per regulations¹	Effluent quality of ThaiBev²
PH	-	5.5-9.0	8.0
COD	Miligram per Liter	≤120	38.0
BOD	Miligram per Liter	≤ 20	7.2
TSS	Miligram per Liter	≤ 50	17.3
TDS	Miligram per Liter	≤ 3,000	1,046.5

Remark:
¹ Refers to Ministerial Notification No.2, B.E. 2539 (1996), issued under the Factory Act, B.E. 2535 ² Except for factories located in industrial estates. The plants have an initial treatment to meet the quality as specified by the particular industrial estate prior to the next treatment by the industrial estate

Waste Management

ThaiBev has continuously paid attention to our waste management. All of our business groups comply with the quality and environmental policies and objectives required for conformity as Environmental Management System (ISO 14001). ThaiBev aims to continuously reduce waste from its production processes.

The production process is responsible for preparing records of waste volume for the monthly and annual summary reports. ThaiBev has a waste sorting and disposal system, as well as a contamination prevention system applied during storage, transporation, and disposal to minimize environmental impact as required by the law. Waste disposal is classified by types of waste from the manufacturing process, consisting of the following 4 types:
1) General waste - disposed of by local authorities, such as the municipality or sub-district administrative organization.
2) Hazardous waste - disposed by legally licensed companies.
3) Valuable waste - sorted so that it can be reused and recycled.
4) By-product waste - handled by Feed Addition Co., Ltd., one of ThaiBev’s subsidiary companies, to generate income for the company.

The determination of ThaiBev to reduce waste has been proved by continuous decrease of the total waste by 11 percent in 2014 and 42 percent in 2015.

Total volume of each type of waste during 2013 - 2015

Waste types	Unit	2013	2014	2015
General waste	Tonnes	4,607	2,502	2,217
Harzardard waste	Tonnes	265	242	177
By-product waste*	Tonnes	54,816	59,400	35,827
Valuable waste	Tonnes	42,064	28,939	14,856
Total weight of waste	Tonnes	101,753	91,083	53,077

Remark:
* The volume of by-product waste is calculated from waste in the production process. It excludes that of the spirits business group which aims to start implementing a record system over the next year.

ThaiBev participated in the 3Rs project initiated by the Department of Industrial Works, Ministry of Industry. As a result, ThaiBev has developed internal guidelines on managing waste more accurately and effectively, contributing to cost reduction under various projects, such as:

ThaiBev also has guidelines on by-product management for value adding purposes and, in this connection, has established Feed Addition Co., Ltd. under the Thai Beverage Group. This company is responsible for managing by-products from the facilities in the spirits and beer business groups, i.e., settled solid, distillery slop ash, dried malt residue, wet malt residue, dry yeast, and activated sludge.

The main goal is to support and develop high quality raw materials for the agricultural and livestock sectors. Such by-products are sold as nutritional supplements for animals, and for production of organic or organic chemical fertilizers to supply interested feed mills, livestock farms, livestock farmers, plantation farmers, and fertilizer manufacturing facilities.

Additionally, Feed Addition Co., Ltd. carries out research and development projects about by-products of distilleries and breweries so as to create innovations. For example, the development of products in cooperation with Kasetsart University involves formulating soil supplements based on the bio-mass cycle. This reuse of by-products may prove profitable from sales to farmers in the neighboring areas, and also rejuvenates soil degraded by extensive use of chemical fertilizers. Moreover, such product development contributes to sustainable environmental preservation, good relationships with the surrounding communities, and is a part of ThaiBev’s corporate social responsibility.

ThaiBev’s waste and wastewater management in 2015 reinforces our commitment to minimizing impact on the community and the environment. This is attributable to the implementation of ISO 14001 in a serious manner, as well as our strict compliance with the law, resulting in no complaints being made to ThaiBev or the authorities.

As of date 31 december 2015

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