Sustainability Performance

Corporate Governance

TVO places importance on conducting business with honesty, transparency, and integrity. To ensure effective corporate governance, a Governance and Compliance Committee has been established to develop practices, communication, and oversee operations efficiently, aligning with good corporate governance principles. In 2023, the Company conducted reviews of various policies, including Corporate Governance Policy, Supplier Code of Conduct, Human Rights Policy, Tax Policy, Disclosure Policy, Sustainable Development Policy, Environmental Policy, Water management policy, Energy Policy, Quality, Safety, Occupational Health and Working Environmental Policy, Related Party Transaction Policy, Anti-Corruption Manual and Whistleblower Policy, ensuring compliance with relevant laws, regulations, and business conduct criteria for directors, executives and all employees.

Performance and evaluation of CEO

The Company evaluates the performance of chief executive officers, executives, and employees annually. Performance is evaluated based on: leadership, formulation of strategic plans, implementation of strategic plans, financial planning and performance, relationship with the Board, external relations, administration and personnel relations, succession plan, knowledge of products and services, and personal characteristics.

Performance in the short term covers the following indicators:

• Financial returns (e.g. net profit)
• Other non-financial indicators (e.g., customer satisfaction scores, resource management efficiency, greenhouse gas emissions reduction, and other indicators from the Company’s Materiality issues

Performance aimed at building the company’s long-term performance and management capabilities and leadership capabilities that will affect the company’s long-term sustainability.

These achievements reflects returns for the Chief Executive Officer. There is a transparent and reasonable process for determining compensation. compensation consists of salaries and bonuses.

Performance and evaluation of Employees

The company incorporates good corporate governance principles into its performance evaluation criteria for determining salary adjustments and bonuses. This includes compliance with the business code of conduct, organizational policies, and applicable laws, as well as active participation in promoting a culture of transparency, accountability, anti-corruption, and support for the organization’s sustainability goals. The evaluation process combines input from supervisors, peer feedback, and self-assessments to ensure a well-rounded and accurate reflection of each employee’s performance and commitment. Scores from these criteria are then used to fairly and appropriately calculate compensation and bonuses.

Anti-Corruption

TVO supports conducting business ethically and transparently. Therefore, it has announced the adoption of the 'Anti-Corruption Manual and Supplier Code of Conduct' to establish honest practices in business operations. This ensures that TVO has appropriate measures in place to prevent corruption and enables thorough consideration and careful execution of business decisions that may involve risks.

In addition, TVO has assigned 'The Guidelines for Giving/Receiving Gifts, Souvenirs, and Hospitality' to ensure that giving/receiving gifts, souvenirs, and hospitality occurs with honesty, devoid of any expectations of benefits or favors, thus mitigating the risk of corruption. Furthermore, TVO actively solicits collaboration from its suppliers to adhere strictly to the Supplier Code of Conduct, Anti-Corruption Policy, and No-Gift Policy. This is facilitated through the issuance of formal communications, including a 'Letter requesting your cooperation to refrain from accepting gifts' and an 'Invitation letter for suppliers to join the Thai Private Sector Collective Action Against Corruption (CAC)' for employees to engage with suppliers effectively. This includes the preparation of a 'Report form for receiving gifts, assets, or any other benefits' emphasizing the significance of adhering to the No-Gift Policy and the Anti-Corruption Policy throughout all operational processes.

The operational process is as follows:

In 2023, TVO was invited by the Thai Private Sector Collective Action against Corruption (CAC) to participate in the CAC Change Agent project. The project aimed to expand the network of transparent businesses to supplier companies, co-developing the potential of suppliers throughout the value chain, showcasing a commitment to transparent management in accordance with corporate governance principles. This fosters confidence among all stakeholders. Suppliers expressing interest in joining the Thai Private Sector Collective Action against Corruption (CAC)

In 2024, TVO was appointed as a CAC Change Agent, demonstrating its commitment to promoting and driving transparent and ethical practices within the organization. This includes policy formulation, fostering a transparent corporate culture, and organizing activities to raise awareness. Additionally, TVO has supported and encouraged businesses in its network to enhance anti-corruption standards, including persuading 6 partner companies to declare their intention to join the CAC under the SME Certification Program 2024. This recognition positions us as a trusted agent for driving sustainable change in the business sector, and received the CAC Change Agent symbol from CAC.

Goal

The number of complaint cases regarding business ethics (if any) investigated and confirmed is 0 cases

Performance Summary 2024

Materiality Assessment

TVO collected, prioritized, and assessed materiality assessment at least annually by considering factors crucial to business operations in the economic, environmental, social and human rights dimensions throughout the Company's value chain. This process involved assessment and prioritization based on the Global Reporting Initiative (GRI) sustainability reporting framework, as follows:

Materiality Matrix

Material Issues for Enterprise Value Creation and Matrix

Material Issues for External Stakeholders

Corporate Risk Management

TVO recognizes the uncertainties that may arise from both internal and external factors, impacting the organization's goals. Therefore, the Company applies the COSO (The Committee of Sponsoring Organizations of the Treadway Commission) international standard framework for the internal control system, which has been enhanced to complement the Enterprise Risk Management (ERM) framework, known as the COSO-ERM Framework. This approach is implemented across business operations, addressing risk management in strategy, operations, finance, regulatory compliance, environmental and social factors, ethics and emerging risks, including risks and opportunities from climate change. This systematic risk management approach enhances the effectiveness of the business strategies.

Risk management structure

Components of Risk Management

TVO implements enterprise risk management (ERM) in alignment with the COSO ERM: 2017 framework, focusing on identifying risks that may impact organizational objectives and integrating these with strategic management to ensure comprehensive risk consideration in decision-making. Internal controls play a critical role in reducing risk likelihood and enhancing operational reliability, while Business Continuity Management (BCM) ensures the organization can respond effectively to unexpected events and maintain uninterrupted operations. Internal audits evaluate the adequacy and effectiveness of risk management processes, ensuring risks are appropriately managed and aligned with organizational goals.

Risk Management Process

TVO employs a comprehensive risk management process to ensure that risks are effectively managed to achieve organizational objectives. It begins with Objective Setting, aligning risk management efforts with the company's strategic goals. Risk Identification follows, identifying potential risks that could impact the achievement of these goals. In Risk Assessment, the identified risks are evaluated and prioritized using a Risk Matrix to assess their likelihood and potential impact. Once assessed, the company proceeds with Risk Response, selecting appropriate actions such as risk mitigation, transfer, or avoidance. Control Activities are implemented to establish mechanisms to manage and reduce risks during operations. Finally, Monitoring is conducted to evaluate the effectiveness of controls and the overall risk management process, ensuring that risks are continuously managed and the company remains aligned with its objectives.

Risk level determination

The criteria for assessing the severity level of risks used by TVO is a 5x5 matrix. The severity levels of risks have 4 levels, where both management and employees can assess the likelihood of occurrence and the impact of risks by scoring from 1 to 5 as shown in the diagram below.

Example of risk level determination

(In the fiscal year 2025)

Ensuring Production Continuity and Business Operations

Emerging Risk

1. Risk from Cybersecurity Threats

Description: Our business operations rely heavily on computer systems and networks, including the internet, for diverse purposes such as database management, data exchange, stakeholder communication, customer outreach, advertising, and sales channels. We recognize the escalating frequency, complexity, and sophistication of cyberattacks, significantly heightening cybersecurity risks.

2. Geopolitical Risk

Description: The ongoing rivalry between the United States and China in politics, military, economy, and technology has led to a prolonged trade war that may last for 5–10 years. This situation could directly and indirectly impact the Company as follows:

In addition, TVO publishes details of various risk factors, the impact that may occur, and management guidelines on Form 56-1 One Report 2024, Part 1-Section2: Risk Management, page 41-48. Risk Management, page 40-48.

Management of Value Chain

TVO prioritizes comprehensive management throughout the value chain to ensure sustainable operations. This involves risk management that considers potential impacts on the business, the environment, society, and adherence to good corporate governance practices.

1. Raw Material Procurement
   
   • Emphasize the importance of raw material sourcing from sustainable cultivation practices that adhere to international standards.
   • Promote the domestic cultivation of soybeans to increase yields per rai for Thai farmers, ensuring high-quality raw materials that meet the standards.
   • Encourage business partners to operate ethically, respect human rights, and be socially responsible by incorporating Environmental, Social, and Governance (ESG) factors into partner selection to support sustainable operations.
2. Inbound Logistic
   
   • Emphasize the importance of safety in transporting raw materials, requiring business partners to comply with legal requirements and transportation standards to minimize transportation-related impacts.
   • Provide mandatory safety training to all business partners prior to workplace entry, promoting occupational health, safety, and a safe working environment.
3. Production
   
   • Integrate digital technology to enhance competitiveness, develop and improve production processes to be environmentally friendly. Increase the proportion of renewable energy use, reduce greenhouse gas emissions and optimize resource utilization for maximum efficiency.
   • Mitigate the impact of production processes on communities, society and the environment by establishing a community relations team for monitor, mitigate, find solutions for prevention and correction, and help build relationships with the communities surrounding the factory.
4. Marketing and Sales
   
   • Develop products and continuously improve services to meet customer needs, enhance customer experience and foster customer loyalty both animal feed products and consumer edible oil products.
   • Expand into new markets abroad while maintaining quality, nutrition, and food safety standards under fair price competition.
   • Strive to develop low-carbon products to support our partners in achieving carbon neutrality and net-zero greenhouse gas emissions targets.
5. Outbound Logistic
   
   • Efficiently manage the distribution of products to deliver them promptly to customers and consumers, both domestically and internationally.
   • Provide training on safety awareness before partners enter the workplace to promote occupational health, safety, and environmental conditions.
6. Customers and Consumers
   
   • Research and develop new products to meet current consumer consumption trends.
   • Foster understanding of good nutrition through company products, promoting continuous recognition of the company's brand by customers and consumers.
   • Survey customer and consumer satisfaction to develop and improve products and services, including logistics management, to maximize customer satisfaction across all customer segments.

Sustainable Procurement

TVO is dedicated to establishing relationships with suppliers and developing work processes to create value for all stakeholders, a key chain to success in business operations. The Company believes that sustainable success must consider environmental, social, and governance (ESG) issues by managing opportunities and risks in all dimensions of business operations. The results would lead to long-term value creation with suppliers and enhance competitiveness.

TVO aimed to achieve 100% acknowledgment and fully signing of the Supplier Code of Conduct by 2024

TVO announced the adoption of "Green Procurement" policy and set a target to procure environmentally friendly goods and services, aiming to achieve 50% of the total procurement volume from chemical and packaging suppliers by 2028, to support the goal of fostering environmentally responsible partnerships.

TVO Established guidelines for selecting suppliers and ensuring that there is a process for assessing suppliers to meet operational standards that cover human rights, labor, environmental issues, and anti-corruption, in line with principles of Economic, Social, and Governance (ESG) practices.

Sustainable Sourcing raw materials

Soybeans serve as a vital raw material for the Company. TVO sources high-quality soybeans from local Thai farmers, which contributes to their increased income. These farmers primarily cultivate soybeans in Sukhothai, Kamphaeng Phet, Uttaradit, Phichit, Chiang Mai, and Khon Kaen. However, soybean cultivation in Thailand has notably declined since 2014, partly due to low yields averaging around 250-270 kilograms per rai. This decline has resulted in high costs and low or to non-profit, prompting farmers to abandon soybean cultivation in favor of alternative crops.

Recognizing the significance of supporting domestic soybean cultivation, TVO initiated a new soybean species planting experiment project. This project began with the establishment of experimental plots spanning a 24-rai area in Mae Taeng and Mae Rim districts of Chiang Mai province in late 2022, with harvests occurring in May 2023. The results from these plots showed that refining soil nutrient management and adopting spaced planting methods significantly increased soybean yields, surpassing the national average yield in Thailand.

In 2023, TVO continued its project, expanding it to include San Sai and Mae Taeng districts in Chiang Mai. This expansion involved 21 interested farmers, covering a total experimental cultivation area of 104 rai. The project aims to boost soybean production, motivate farmers, reduce cultivation costs, increase yields, generate additional income, and enhance the quality of life for soybean farmers, thus supporting sustainable livelihoods.

Regarding soybean importation from Brazil, America, and Argentina, global impacts such as volatile weather conditions and geopolitical conflicts have led to lower-than-expected yields. Additionally, disruptions in transportation routes have affected raw material logistics. TVO has closely monitored these situations, planning raw material procurement and risk assessments to ensure uninterrupted production and supply chain operations.

In 2023, as international travel restrictions eased, TVO conducted on-site inspections of soybean plantations in source countries. The objective was to evaluate the aspirations and capabilities of each raw material source, predicting environmental factors' impact on sourcing. The Company gathered information from analyses and research studies to plan procurement and began evaluating sustainability risks for suppliers based on reliability, emphasizing compliance with good governance principles and minimizing negative societal and environmental impacts. Additionally, TVO joined Sedex for ethical trade audits and became a member of the Round Table on Responsible Soy Association (RTRS)+.

Environmental Policy & Management

Environmental operations, the Company recognizes the importance of environmental protection in preventing and taking responsibility for the impacts that may arise from operations, both inside and outside. Therefore, TVO has established an “Environmental Policy” published on the company's website: https://www.tvothai.com/en/corporate-governance to encourage the development of environmentally friendly production processes, reduce greenhouse gas emissions, systematically manage water, ensure the most efficient use of resources, and contribute to the preservation of biodiversity and ecosystems

Environmental management and operations are under the "Environmental and Social Working Group" or "ES Working Group," which selects a representative from each relevant department. This working group serves as the central unit for collecting environmental data from all aspects of operations, covering climate change, energy management, water management, and waste from production processes. These data have been targeted toward reducing resource usage both in the short and long term, mitigating impact of the production process, promptly responding to complaints, and informing the ESG management group of progress.

TVO monitors various aspects of environmental performance and reports them to the management team on a monthly basis. This process enables the identification of root causes and the implementation of improvements to ensure that environmental performance aligns with established targets. Additionally, TVO conducts regular internal audits on environmental aspects and impacts, covering both the company’s operations and related activities, covering 100% group-wide production-sites – TVO1 & TVO3*. These assessments are conducted in accordance with ISO 14001 standards and are routinely reviewed internally to ensure continuous improvement. Moreover, one of our production – TVO1 site has ISO14001 certification, accounted for 50% of total production sites.

*Remark: TVO has 3 operational sites, only TVO1 and TVO3 are production-sites, TVO2 is the warehouse operation.

Climate Change and Energy Management

TVO has set a long-term target to achieve carbon neutrality by 2045 and net zero emissions by 2060. This includes an interim target to reduce greenhouse gas emissions (Scopes 1 and 2) by at least 20% by 2035, compared to the baseline of 2021, aligning with Thailand's and international goals. These actions aim to mitigate the impacts of climate change on the economy, society, and the environment.

ISO 50001

TVO has achieved ISO 50001 certification, the global standard for energy management systems. This significant milestone underscores our commitment to energy efficiency and sustainability. As part of our compliance with ISO 50001, we conduct regular energy audits to identify opportunities for enhancing energy performance throughout our operations. The results from these audits are used to develop and implement a comprehensive energy conservation plan. Additionally, we place an emphasis on knowledge management by conducting energy conservation training programs for relevant staff, ensuring our team is equipped with the skills and expertise to drive best practices.

TVO began installing solar rooftop electricity generation systems in 2020. Currently, TVO has installed a total of 2 megawatts of solar power capacity, which has resulted in a total reduction of 2,600 tons of carbon dioxide equivalent in greenhouse gas emissions throughout the project. In addition, in TVO is implementing an additional seven solar rooftop installation projects during the years 2024–2025. When completed, it is expected that the total electricity production capacity will exceed 8 megawatts, covering an area of 44,000 square meters. Furthermore, there are plans for continuous installation. This initiative represents another significant step toward helping TVO achieve the goal of net zero greenhouse gas emissions.

Water and Wastewater Management

"Water" is considered a crucial resource in the production process, impacted by extreme weather events brought on by climate change, which have a significant effect on water users in all regions. TVO places emphasis on integrated water management services to prevent and mitigate potential impacts resulting from its water usage.

Water Use Assessment to Identify Opportunities for Efficiency Improvements

A key element of our water efficiency strategy is conducting a water balance to systematically assess water use. This involves:

1. Creating a Water Balance: Tracking all water inputs, outputs, and flows within our facilities to gain a clear understanding of water usage patterns.
2. Benchmarking: Comparing water balance data against industry norms to identify inefficiencies.
3. Technological Integration: Leveraging advanced tools like flow meters and IoT-based monitoring to improve the accuracy and granularity of water balance studies.
4. Opportunity Identification: Using insights from the water balance to uncover specific areas for efficiency improvements, such as process optimization and leak detection.

Reduce external water consumption in accordance with the principles of the 3Rs

• Reduce - Conducting a survey and developing a plan to reduce unnecessary water usage. For example, reduce the quantity of water entering the steam boiler system by limiting the blowdown water volume to a maximum of 2% of the total water discharge rate.
• Reuse - Enhancing the production system to recycle used water that continues to meet quality standards for utilization in units that do not necessitate high-quality water. For example, reusing blowdown water from the cooling tower for the dust trap spray pond and utilizing reject water from the reverse osmosis (RO) process as compensation water for the cooling pond in the extraction plant.
• Recycle - Installing machinery to recycle wastewater. For example, recycling reject water from the RO system and the resin washing water back through the new water softening process

As a consequence of consistently implementing over 20 projects related to the 3Rs (Reduce, Reuse, Recycle) between 2022 and 2023, TVO has successfully diminished external water consumption by over 40,000 cubic meters annually.

Awareness Training for Employees

We ensure that employees are actively engaged in our water efficiency initiatives through regular training programs, which include:

1. Specialized Training for Key Staff: Employees working directly with water consumption and water efficiency management programs, such as operational staff, facility managers, and maintenance teams, receive tailored training on optimizing water use and improving management practices.
2. Practical Guidance on Water Conservation: All employees are educated on water-saving techniques, such as promptly addressing leaks and using water responsibly in daily tasks.
3. Organization-Wide Awareness Campaigns: Broader initiatives encourage a culture of sustainability, inspiring everyone to contribute to our water efficiency goals.

Zero Discharge

TVO’s comprehensive approach has led to a significant milestone: zero wastewater discharge. By utilizing treated wastewater for essential processes such as boiler scrubbers and cooling systems, we have eliminated discharge into external environments, contributing to resource conservation and environmental protection.

Business Impacts of Water Related Incidents

Since the start of our operations, we have never experienced any water-related incidents, such as operational interruptions or plant closures, with substantial financial impacts (over $10,000) in the past four fiscal years. This reflects our strong commitment to effective water management and operational resilience.

Supply Chain Water Risk Assessment

The company systematically tracks and maps water-related risks across its soybean supply chain, which represents the most material agricultural raw material for the company, using the WRI Aqueduct Water Risk Atlas (2024) The assessment covers 100% of imported agricultural commodities (by tonnage). Each sourcing port was evaluated for local physical water stress levels.

• Low–Medium (10–20%) risk areas: ~10% of total soybean volume (Barcarena, Tubarao)
• Low (<10%) risk areas: ~90% of total soybean volume (Itaqui, Paranagua, Santos, Aratu, Mondial Cosmos USA
• 100% of agricultural commodities mapped and monitored.

The analysis indicates that the company’s agricultural supply chain is predominantly located in low-risk water-stressed areas. Results are used to inform supplier engagement and sourcing decisions, aligning with the company’s ESG and risk management framework

In cases where elevated risks are identified, the company has established proactive monitoring and adaptive sourcing measures. The Supply and Trading team closely monitor soybean production conditions on a daily basis, including crop yields, weather patterns, and climate anomalies such as El Niño and La Niña events, which may affect agricultural productivity and water availability.Moreover, the company maintains a diversified supplier base across multiple regions in South America, enabling flexible sourcing and rapid supplier reallocation whenever abnormal trends or potential disruptions are detected. These measures ensure business continuity, supply chain resilience, and alignment with the company’s long-term sustainability strategy.

Water risk assessment

Implementing water risk management guidelines is regarded as a business preparedness measure to assess impacts, develop mitigation plans, and ensure continuous business operations.

TVO has conducted a water risk assessment, encompassing issues related to drought, flooding, raw water quality, as well as legal risks, resulting in the development of risk reduction and management measures. For example, sourcing alternative water sources and installing additional equipment in the production process to alleviate drought and water quality issues and preparing a BCM (Business Continuity Management) Plan and an emergency response plan to mitigate flood incidents. All water-related risks are recorded in the organization's risk register, which undergoes periodic review and reporting of operational progress to the management level and stakeholders annually.

"Moreover, in 2023, TVO conducted an assessment of risks and opportunities related to climate conditions in accordance with the TCFD (Task Force on Climate-related Financial Disclosures) standards. This resulted in the company gaining an understanding of the level and long-term impacts of water-related changes due to climate change, which has led to further preparation and responsiveness to water-related risks in the future.

Waste Management

TVO prioritizes the management of waste generated from the production process, packaging, office support, and product usage by emphasizing proper management, alongside maximizing resource utilization in accordance with the principles of a circular economy.

TVO achieved the target of zero waste to landfills since 2020. This year, the company has achieved a 100% waste utilization target. For example, converting spent bleaching clay into fertilizer, utilizing bleaching clay with a high calorific value to produce blended fuel for alternative energy usage in cement kilns, and utilizing treated wastewater internally within the factory premises without any discharge outside the area.

More than 90% of the waste consists of chaff ashes from the steam production in the manufacturing process. In 2567, the New TVO1 project installed new steam boilers capable of using various types of fuel, resulting in a significant reduction in chaff ash production from steam manufacturing processes. Furthermore, TVO is currently studying the utilization of chaff ash as raw material in other industries. This includes projects aimed at exploring the creation of new products from chaff ash to enhance livelihoods and provide income for retiring employees.

Waste audits

To ensure effective waste management, TVO follows strict audit processes that comply with ISO 14001 standards. In 2023, TVO1, which accounts for 50% of production sites, was certified to the ISO 14001 standard. In 2024, TVO expanded the best practices from TVO1 to TVO3 by initiating internal audits to ensure waste management practices are fully implemented across all operations. These audits involve thorough inspections of all areas within our plants, conducted by a team comprising members from various departments.

The internal audits focus on several key areas:

• Ensuring proper daily waste management activities, such as effective waste segregation.
• Maintaining the infrastructure needed for efficient waste handling.
• Communicating waste management practices clearly to employees through internal channels, meetings, and visual aids.

These audits play a crucial role in ensuring compliance, identifying areas of significant waste generation, and uncovering opportunities for continuous improvement in our waste management process.

Food Loss and Waste Management

At TVO, we are committed to reducing food loss and food waste across all operations, including throughout the supply chain. Thanks to the efficient design of our soybean oil extraction process, we produce two primary products: soybean oil and feed ingredients, while achieving zero food loss in production. Additionally, by-products such as lecithin, soybean hulls, and crude degummed soybean oil are commercially utilized, ensuring optimal resource efficiency and contributing to our zero-food loss goal.

To further promote sustainability, we have implemented programs aimed at raising awareness among employees about food waste management. One such initiative involves repurposing leftover food from our dining facilities as animal feed. In 2024, this initiative successfully diverted 504 kilograms of food waste to animal feed programs managed by Bangkok Metropolitan Administration (BMA).

These efforts demonstrate TVO’s dedication to establishing measurable and impactful programs that address food loss and waste while contributing to alternative uses, aligning with our broader sustainability goals.

Result of Food Loss and Waste Management

In 2024, food loss and waste across TVO’s operations were measured and break-down by life-cycle state as follows:

• Raw Material Handling (0 tons): Spoiled beans due to transportation time that can not use in production process.
• Production (0 tons): There is no food waste due to the efficient design of the soybean oil extraction process and the ability to commercially utilize by-products (Feed Ingredient) .
• After-Sale Product (21.6 tons): Cooking oil expired due to improper shelf-life management and was damaged during transportation. A total of 21.4 tons was reprocessed into new products.
• Staff Activities at Production Sites : 504 kilograms of food waste from dining facilities, repurposed into animal feed.
• Food loss & waste intensity : 0.00015 kg / tons Soybean

Management of Impacts and Complaints

TVO emphasizes the importance of managing the impacts arising from the production process and attending to complaints received through diverse channels. Additionally, the Company's establishment of a "Community Relations Team," responsible initially for coordinating with the community. This team will conduct household visits and promptly address various complaints, then coordinate with the relevant departments to solve the problem with the aim of minimizing the impacts from the production process. Finally, communicating back to the community to inform them of the results of ongoing improvement efforts undertaken by TVO.

The operation is divided into 2 parts, namely:

In 2023, there were no formal complaints from the community regarding distinctive impacts from the production process, nor were there any complaints directed towards governmental agencies. Nevertheless, the Community Relations Team continues to engage in communication and field visits aimed at closely listening to feedback from the community and consistently monitoring potential impacts that may arise.

Result

Sustainable Agriculture and Animal Welfare

TVO recognizes the value and importance of natural resources and the environment, particularly agriculture, which is a fundamental and upstream factor of its business. As such, “TVO commits to promoting sustainable agriculture and animal welfare for all business operations under TVO’s management”, as well as for its agricultural partners, business partners involved in animal farming, meat processing and the manufacturing of food products , as follows:

• Efficient Resource Management: Manage resources effectively, including reducing greenhouse gas emissions, energy consumption, water consumption, and significant environmental pollutants.
• Reduction of Hazardous Chemicals: Consider reducing the use of hazardous chemicals or transitioning to environmentally friendly alternatives, including minimizing the excessive use of pesticides.
• Climate and Energy Initiatives: Participate in and implement projects related to climate change, energy conservation, or adopting clean energy sources that contribute directly or indirectly to addressing climate change challenges and reduce Greenhouse Gas emissions.
• Sustainable Agricultural Practices: Agricultural partners should apply sustainable farming principles, such as soil improvement and protect soil health, conducting water risk assessment, and planning for water security, along with enhancing agricultural productivity. Other practices should also be adopted to prevent the destruction of ecosystems.
• Animal Welfare Policy: Suppliers and business partners involved in animal farming, meat processing and the manufacturing of food products must recognize the importance of and adhere to international Animal Welfare Policy based on the "Five Freedoms." These include ensuring Freedom from hunger, thirst and malnutrition, freedom from discomfort, freedom from pain, injury, and disease, freedom from fear and distress, and freedom to express normal behavior.

(Source : TVO’s Supplier Code of Conducts 2024)

International Standards Certification for Sustainable Agriculture

Raw Materials		Certification or Accreditation	The Coverage of products Certified	Exposure of Product Certified
Soybean		Round Table on Responsible Soy Association	1.8%	1.8%
		Non-Amazon Biome/ Declaration	92.8%	92.8%
Sardines		GMP Certificate issued by the Department of Fisheries, Ministry of Agriculture and Cooperatives, Government of Thailand	100%	100%

Striving for Sustainable Packaging

TVO recognizes the critical environmental challenges posed by plastic packaging. As a leading producer of vegetable oil, we use significant amounts of plastic in our packaging, which compels us to take responsibility for reducing our environmental footprint. Guided by our “Sustainable Packaging Policy and Guidelines”, we are committed to adopting innovative solutions that balance functionality, quality, and sustainability, ensuring our packaging supports a healthier planet.

“TVO is committed to eliminating unnecessary plastic packaging, single-use plastics, and reducing the use of plastic materials in packaging to address plastic waste issues and lower the carbon footprint of products.”

Target : “Reduce the carbon footprint of our 1-liter soybean oil packaging by at least 2% by 2025 through reductions in plastic material usage.”

Significant progresses :

• Successfully eliminating cap seals (single-use plastics) from our bottles since 2022 has reduced unnecessary plastic waste by up to 3,600 kilograms annually.
• Innovatively reducing plastic usage by 4 grams per bottle in 2020, the 1-liter vegetable oil bottles were redesigned to maintain durability. In 2024, the Company further improved its packaging by reducing plastic usage by an additional 3 grams per bottle, resulting in more environmentally friendly bottles and achieving a total reduction of 473,500 kilograms of plastic per year.
• Reusing industrial oil containers through a systematic program in 2024, the Company successfully reduced the use of 35,000 new containers, equivalent to 315,000 kilograms of plastic, thereby minimizing waste generation and supporting circular economy practices.
• Replacing PVC bottle labels with OPP since 2024 has enhanced recyclability and increased the use of sustainable packaging materials.

Result:

Material type of Packaging used in 2024

Plastic Packaging Material