Sustainable Development in Environmental
Smart Store “Aims for reduction of environmental impacts”
Environmental Policy and Practices
The Company emphasizes on business operations and growth together with environmental management. Although the business operations have no direct impacts on the environment or produce pollution like factory, anyway, the company realizes to the importance of environmental care. Managing the efficient use of resources to reduce and prevent impacts on the environment causing from the operations of the company by setting “Environmental Policy” to be guideline in operations with environmental responsibility.
Smart Stores
| Indicator | 2020 | 2021 | 2022 | Target | Target Year |
|---|---|---|---|---|---|
| The proportion of renewable energy consumption | 57.75% | 52.15% | 53.46% | 63% | 2027 |
| Solar power production quantity (kWh/year) (Renewable Energy) | 77,049,661 | 78,860,821 | 79,611,969 | 100,000,000 | 2027 |
| Energy consumption per area decreased from the base year. (The base year 2018) | -7.11% | -7.72% | -0.83% | -7.00% | 2027 |
| Amount of Greenhouse Gas Emissions on scope1 and Scope2 per total revenue, has decreased from the base year (percentage) (The base year 2022) | - | - | - | -10.00% | 2030 |
| Reduced water consumption per store from the base year (The base year 2020) | 0% | -6.39% | 4.74% | -10.00% | 2027 |
| Water recycling volume | 81,987.52 | 113,993.94 | 118,751.40 | 150,000.00 | 2027 |
| The amount of waste sent to landfill (Metric ton) | - | - | - | ||
| Recycled waste quantity (Metric ton) | - | 2,563 | 2,430 | - | 2025 |
| Increase of accumulated green space (square metre) | 9,926 | 11,800 | 15,200 | - | - |
| A4 paper quantity use per store (pcs) | 31,169 | 33,820 | 32,824 | 28,000 | 2030 |
Energy Management
The company has intention to operate its business simultaneously with efficient energy management, maintains to prevent the environmental impacts by adhering the Sustainable Resource Use Guidelines together with Climate Change Mitigation and Adaptation, which begins from designing the building structure, work process improvement, machine, equipment to conform with energy conservation.
Management guidelines
- Operations under regulations, laws and international standard
- Since 2016, the company has policy to install Automated Storage & Retrieval System: ASRS (which is closed system, no lighting required in working result in reducing electricity consumption, besides of energy saving, the ASRS also helps to improve the efficiency in warehouse management)
- In 2017, the company have changed the air-conditioning system from Misting Fans to be Air-Condition and improve lighting system inside the store which need to use more electric energy, then, have policy to install Solar Rooftop to generate electric energy from solar energy for energy saving in long term, and the company have already installed completely for all stores in 2019, resulted in reduction of operating expenses of the company. Moreover, in 2020, the company have developed the Air-condition control program causing more reduction of energy consumption.
Operating Results
Details of Electricity consumption from transmission line
| Year | Numbers of Store | The quantity used for electric energy consumption (kWh) | The quantity used for electricity per area (kWh / square meter) |
|---|---|---|---|
| 2020 | 71 | 56,380,314.27 | 38.87 |
| 2021 | 75 | 72,367,475.00 | 47.97 |
| 2022 | 77 | 69,305,359.00 | 45.25 |
1. Renewable Energy Consumption (Solar roof top)
Since the year 2017, the company has policy for renewable energy consumption, so the company start the Solar Rooftop Installation Project for electricity generation from Solar energy, no effects on environment as it’s clean energy and also helps to reduce the operating expenses. In 2022, the company has Solar Rooftop to generate its own electricity covered in all stores, totally 77 stores,
| Year | Number of Stores | Accumulated number of installed store (Solar cell) | Generated Electricity Volumes (kWh / year) |
|---|---|---|---|
| 2020 | 71 | 71 | 77,049,661 |
| 2021 | 75 | 75 | 78,860,821 |
| 2022 | 77 | 77 | 79,611,969.10 |
2. Electric Power System Changing Project both interior and exterior
The company have action plan to improve lighting system both inside and outside the building which result to reduction of energy consumption for 151,651 kWh/year.
| Project | Number Of Stores | Reduced Energy Volumes (kWh / Year) |
|---|---|---|
| Change street light around the building from Street Light 120 Watt to be Solar Cell system | 3 | 58,458 |
| Change Customer’s Garage light from LED 20 Watt to be Solar Cell system | 3 | 3,815 |
| Change light in display tray from LED 14 Watt to be LED 10 Watt | 3 | 63,072 |
| Change Aisle light from TLD 36-Watt, 13 set to be LED 48-Watt, 4 set | 3 | 20,031 |
| Change Rack light from TLD 20 Watt to be LED 18 Watt | 3 | 6,275 |
3. Automated Storage & Retrieval System: ASRS
Since the Year 2016, the company has installed Automated Storage & Retrieval System: ASRS which is controlled by computer in all the system to increase rapidity, accuracy and efficiency in the warehouse management of the company. Besides, the ASRS is closed system; no lighting required to work, result to reduce electricity energy consump¬tion result in the electric energy consumption has reduced.
Water Management
Determination and Goal
The company gives the importance to efficient water consumption, from water supply, ground water and Recycle water in the company’s operation for realizing to the importance of water and energy conservation as well as maximizing the value.
Management Guidelines
The company has water consumption management by mostly using within the building store and the staff canteen for cleaning. Anyway, the company attempts to reduce water consumption volumes by determining the Technic department to regularly calibrate waterpipe, cleaning equipment and water meter in every month. For new store expansion and same-store renovation, the company has determined to install water-saving sanitary ware, urinal, and automatic faucet. In addition, the company operates the reduction of wastewater emission to environment project by recycling wastewater from stores through the wastewater treatment process to reuse in water the plants, can reduce the water consumption volumes from water supply and ground water by the following water consumption details during the year 2020-2022;
Operating Result 2022
Water Consumption Statistic
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Accumulated Number of stores | 71 | 75 | 77 |
| Accumulated Number of stores in water supply consumption | 57 | 61 | 63 |
| Accumulated Number of stores in ground water consumption | 14 | 14 | 14 |
| Accumulated Number of stores in water the plants system | 20 | 26 | 29 |
| Water Consumption Volumes separated by sources | |||
| • Accumulated water supply consumption volumes (m3 / year) | 296,394 | 296,940 | 343,113 |
| • Accumulated ground water consumption volumes (m3 / year) | 87,444 | 95,670 | 58,472 |
| Total Volume of water consumption (m3 / year) | 383,838 | 392,610 | 401,585 |
| • Net rate of water consumption of store | |||
| • Water supply consumption rate/stores* | 5,199 | 4,867 | 5,447 |
| • Ground water consumption rate/stores* | 6,246 | 6,834 | 4,177 |
| • Water Recycling volumes (m3 / year) | 137,515 | 224,640 | 250,560 |
| Accumulate Green Area (m2) | 9,926 | 11,800 | 15,200 |
Rate of water consumption 2020 - 2022
Waste Management and Secondary Material
Determination and Goals
The company has policy and guidelines for proper and systematic management of waste and garbage generated in the store, no effects to the community, environment and conform with the laws. The waste and garbage generated from the operations, customers and employees; the company aims for reducing scrap waste including campaign for reducing the use of plastic bag.
Management Guidelines
The company arranges the garbage and waste sorting separated, divide into 4 types for instance; general scraps, general wastes, garbage and infectious wastes, by the following details and management guidelines;
- Scraps wastes; waste generated from the company’s operations such as paper boxes packaging, plastic bands, paint cans, and scrap iron, the company shall distribute to waste buyers in local and regularly determine the annual bidding.
- Wet garbage generated from canteen which has not much quantity, managed by food waste sorting and give to employees who want to feed their pets or make Biofertilizer.
- Infectious wastes such as masks, Bandages and absorbent cotton, the company has determined to put it in garbage bag for “Infectious wastes” and tightly close for the disposal in a correct way by the local government.
- General waste, the company has determined to sort and storage in designated area for sanitary disposal by the local government.
1. Love the Earth Shopping Project
Earth’s surface and occurs greenhouse gases. Thus, the company has established the project “Love the Earth Shopping” by encouraging customers to refuse plastic bag including giving member customers for more points.
2. “Yak-laew-D” projects. (Good sorting)
The Company recognizes the importance of promoting waste sorting from the source and correct management to the destination. Therefore, the “Yak-laew-D” project was organized to campaign and encourage employees to understand and realize the importance of waste sorting, waste reduction as well as recycling waste to bring waste into the management process for benefits again.
3. Reducing paper use
Determination and goals
The company pay attention in natural resource consumption restrictive to maximize benefits and reducing the woodcutting as well as reducing the water consumption in paper production process. The company has determined the goal to “Reducing paper use” by setting the reduction target of paper use to be 28,000 pcs. Per store within the year 2030.
Management Guidelines
The company has policy to promote the Reducing A4 paper use by changing the form of receipt / tax invoice from A4 paper use to be A5 paper use. Besides, the company has campaign for paper use appreciative by setting the printing limitation as necessary in order to reduce and reuse as well as improve the working style to be Paperless by developing program for internal using.
Operating Result 2022
In 2022, the quantity of A4 paper used in operations has decreased by 9,500 pcs when compared with the year 2021 or was equal to 922 pcs per store.
| Paper Use quantity / Year | 2020 | 2021 | 2022 |
|---|---|---|---|
| A4 paper quantity use in office (pcs) | 2,213,000 | 2,536,500 | 2,527,000 |
| Numbers of store | 71 | 75 | 77 |
| Using rate per store (pcs) | 31,169 | 33,820 | 32,825 |
Climate Change and Greenhouse Gas Emission
Intention and Goals
The company is committed to be a part of tackling climate change, with well awareness that climate change is an issue that affects sustainability and human well-being. The worldwide has cooperated in reducing Greenhouse Gas (GHG) emissions to mitigate the impacts. In this regard, the Company gives the importance to the Carbon Footprint for Organization (CFO) assessment by starting to conduct the assessment in 2022 in order to know the amount of greenhouse gas generated from the company’s activities. As well as monitoring the performance of activities following greenhouse gas emission reduction measures, and set the goal to reduce GHG emission by at least 10% from the base year (2022) within 2030.
Intention and Goals
The company is committed to be a part of tackling climate change, with well awareness that climate change is an issue that affects sustainability and human well-being. The worldwide has cooperated in reducing Greenhouse Gas (GHG) emissions to mitigate the impacts. In this regard, the Company gives the importance to the Carbon Footprint for Organization (CFO) assessment by starting to conduct the assessment in 2022 in order to know the amount of greenhouse gas generated from the company’s activities. As well as monitoring the performance of activities following greenhouse gas emission reduction measures, and set the goal to reduce GHG emission by at least 10% from the base year (2022) within 2030.
Risk and Opportunity
| Risks | Impact | Opportunity |
|---|---|---|
| Physical Risks | • Customers and revenue have declined from temporary stores closure. • Operating costs has increased. | • Increased Online sale channels. • Installed ASRS system. • Installed Solar Rooftop. |
| Low Carbon Policy | • Operating costs has increased from compliance with carbon reduction policies. | • Replaced equipment and tools with electrical systems such as Electric Forklift, Electric Vehicles to reduce Greenhouse Gas emissions. |
| Technology & Marketing | • Customers tend to demand more Eco-friendly products and services, affected the same stores sales. | • Having an opportunity to expand ECO Product market and create service innovations to reduce environmental impacts. |
| Reputation Risk | • Expectations from stakeholders on the Company’s environmental operations may affect the reputation and image. | • Having an opportunity to build the good reputation and image and create value to Brand. |
Management Approach
The Company operated retail business of construction materials and home decorative products which its activities required energy and natural resource consumption for customer service. The Company gives the importance to impacts from business activities causing GHG emissions, therefore emphasizes on operating for reducing GHG emission both direct way (Scope1) and indirect way (Scope2) by setting the devices modification policy of equipment, tools and vehicles to be electric instead of fuel oil, and policy on the use of solar energy instead of electricity from transmission lines. As well as energy conservation measures by reducing electricity consumption, the source that generates the highest greenhouse gas emissions by 58% of all activities.
In 2022, the Company has started the Carbon Footprint for Organization (CFO) assessment or the amount of Greenhouse Gas emission from the company’s activities such as Fuel combustion, electricity consumption, waste management, and transportation, which shows the result in the form of tons of carbon dioxide equivalent. This makes to know the significant points of the company’s greenhouse gas emissions and will lead to effective management by The scope and results of the greenhouse gas emissions assessment as follows;
Scope of Greenhouse Gas Emissions
| Scope 1 | Scope 2 | Scope 3 |
|---|---|---|
| • Gasoline / diesel oil volume for executive vehicles • Diesel oil volume for delivery vehicles. • Gasoline oil for Lawn movers • LPG / Diesel / Gasoline Volume for Forklift • Diesel fuel consumption of Generator / Fire pump • CO2 Fire Extinguishing Agent Consumption • Refrigerant quantity for type of R32 / R410A / R407C / R134A / R404A / R401A • Methane content from Septic tank • Methane content from activated sludge wastewater treatment system | • Electricity consumption | • A4 70 gsm / A5 paper purchase quantity • LDPE Handle Bag Purchase quantity • Provincial Water Supply/Metropolitan Water Works Authority • Acquisition of Gasoline / Benzine / Diesel / LPG / Electric • Transportation of raw materials (paper, handle bag) • Landfill Waste Management • Employee’s travel to the workplace • Disposal of product residues (Tax invoice printing paper (A5) Paper handle bag) • Electricity consumption of tenant |
Greenhouse Gas Emission Details for 2022
* Remark : The Company has conducted the Carbon Footprint for Organization (CFO) by using data from 1st January – 31st December 2022, and has passed the audit and review by “The specializes in environmentally friendly business strategies center” who is the CFO reviewer registered with the Thailand Greenhouse Gas Management Organization (Public Organization).
1. Electric Forklift and Electric Stacker Using
Due to daily operating activities of stores about transferring products, picking and products storage, need to use Forklift to be convenient, fast and labor-saving, the Company has defined that Electric Stacker for using in area of home décor products and electric forklift for using in construction products.
Since the year 2020, the Company has policy of using Electric Forklift for new stores and replacement of Forklift fuel of same stores which was ended of life. Due to the company has realized that the fuel combustion was the cause of Greenhouse Gas, and air pollution, while the Electric Forklift and Electric Stacker have no environmental impacts.
2. EV Charger Station installation project
The Company has installed EV Charger Station in service area of stores to support the use of renewable energy and reduce Greenhouse Gas causing from all stakeholders of the Company. At the end of 2021, the Company have EV Charger Station in number of 12 stores.
3. Organizing the sale promotion by Digital system (Digital Lucky Draw)
In 2022, the Company has adjusted the sale promotion activity “Chai Roi Ching Lan” season9 to be Digital system, that can reduce A5 paper consumption for printing to be coupon by 17,963,606 pcs, and reduce fuel oil consumption for delivery coupon from all stores to the head office. And also changed the prizes to be Electric Vehicle of 9 cars instead of Gasoline car to support the driving into a low-carbon community.
4. Activities for promoting employees to participate in energy and environment conservation
- Provide knowledge and training employees regarding environment including reduction method of Energy consumption by publicizing through corporate media such as Energy saving campaign signs, public relations board, and intranet, i.e.
- Publicize to all employees to participate in reduction of Energy consumption such as electric saving, water saving, including usually audit water pipes and equipment to be in good condition and efficient.
- Encourage the executives and employees to turn off air-conditioners and lighting during lunch time or being outside the room for a while.
Sustainable packaging
The corporation controls over 10,000 products known as House Brand products, all of which follow sustainable package management requirements. which mandates that the packaging of House Brand products be reusable (Reusable), recyclable (Recyclable), or biodegradable (Compostable) in order to maximize resource efficiency and minimize environmental effects. By the year 2022, the company has used the packaging of House brand products, which is categorized by packaging type as follows:
Plastic Packaging
| Total weight of all plastic packaging (MT) | Percentage of recycled content within packaging (% of the total weight of all plastic packaging) | Percentage of recyclable plastic packaging (as a % of the total weight of all plastic packaging) | Percentage of compostable plastic packaging (as a % of the total weight of all plastic packaging) | Coverage (as a % of cost of goods sold) | Target for FY 2022 (MT) |
|---|---|---|---|---|---|
| 959.48 | 4.87 | 3.00 | 0.77 | 100 | 900 |
Non-Plastic Packaging
| Non-Plastic Packaging separated by material (MT) | Total Weight (metric tonnes) | Recycled and/or Certified Material (% of total weight) | Coverage (% of cost of goods sold) (House Brand) | Target 2022 (% of total weight) |
|---|---|---|---|---|
| Wood/Paper fiber packaging | 13,238.48 | 70.72 | 100 | 70% |
| Metal (e.g. aluminum or steel) packaging | 77.76 | - | 100 | - |
| Glass packaging | - | - | - |