TCP Group Unveils its Sustainability Report “Collaboration” Shows that Everything is Possible Balancing the Dimensions of the Economy - Society - Environment towards Sustainability Goals
TCP Group unveiled its 2022 Sustainability Report, highlighting advancements in its sustainable development operations to achieve a balance across three dimensions: the economy, society, and the environment.
In 2021, TCP Group established key strategies driving the organization towards a sustainable business under its new purpose of "Energizing a Better World for All." Based on its latest sustainability report, TCP Group is confident that it will successfully implement its sustainability strategies across the following four areas:
- Product Excellence: developing products to address the unmet needs of consumers.
- Ensuring that all types of the company’s packaging are 100% recyclable by 2024.
- Reducing carbon emissions in the production process to achieve Carbon Neutrality by 2050.
- Water Sustainability: replenishing more water for the environment and communities than the amount used in the production process (Net Water Positive) by 2030.
Mr. Saravoot Yoovidhya, Chief Executive Officer of TCP Group, said, “Since sustainability encompasses a broader scope, TCP Group is committed to continuously collaborating with partners across different sectors to establish a balance among economic, social, and environmental dimensions. This includes enhancing the quality of our products and services, providing new skills and knowledge among our employees, developing environmentally friendly production processes and packaging, and engaging in community development and promoting education for children and youth. The success shown in our sustainability report is the result of such collaborations, with the government playing a key role in formulating policies and laws. The private sector has adapted to accommodate new business operations, while consumers have embraced a mindset shift towards consumption and purchasing that have a positive impact on sustainability. We firmly believe that collaboration among all sectors is an essential mechanism to drive the sustainability agenda, achieve our goals, and deliver value to energize a better world for all, sustainably.”
Sustainability operations and measurements, which encompass a range of areas relating to stakeholders, can be classified into the following three dimensions:
- Economic dimension: Sustainable Supply Chain and Corporate Governance
- Social dimension: Product Excellence, Human Resource Management, and Sustainable Communities and Society
- Environmental dimension: Low Carbon Economy, Water Sustainability, and the Circular Economy
Economic dimension: Sustainable Supply Chain and Corporate Governance
TCP Group focused on enhancing the competitiveness of its supply chain beginning with the procurement process, production, logistics, marketing, and distribution, through to the delivery of quality products and services to consumers through collaborations with partners to set ethical standards and guidelines for responsible operations and maintaining sustainability as the core principle.
Sustainable business operations concepts across the supply chain
In addition, the company is implementing a proactive integrated management approach that ensures adherence to corporate governance, risk management, and operational supervision in strict compliance with the law. These crucial elements are important factors in establishing sustainable business operations and instilling confidence and trust among all stakeholders.
Governance and Economic Performance
- 100% of companies under TCP Group and at the corporate level in Vietnam and China have successfully passed the risk assessment.
- 100% of partners have signed an acknowledgment confirming their commitment to comply with TCP Group’s Code of Conduct.
- 1st level partners have received a self-assessment on sustainability.
- Social investment expenditures amounted to 27 million baht.
Social dimension: Product Excellence, Human Resource Management, and Sustainable Communities and Society
TCP Group is committed to developing innovative products to meet the health needs and well-being of consumers. The goal is to ensure that 80% of all product categories align with the company's healthier choice criteria by 2024. This includes the sweet reduction group, specialized benefit group, and the product development group for the elderly. In 2022, TCP Group introduced nine new products that met health requirements, resulting in healthy drinks accounting for 70% of the entire product range. In terms of Human Resources, TCP Group strongly believes that “people” are invaluable assets, and thus, the company prioritizes the quality of life of its employees in areas encompassing the work environment, skills development, and career advancement opportunities in order to create employee happiness and stability. In 2022, the organization’s engagement assessment reached 79% while the employee retention rate came in at over 97%. In addition, the company aims to support well-being within the community and society by targeting reductions in inequality, promoting equality, and encouraging sustainability through various projects covering education, public health, and community promotion and development. As a result, there have been more than 118,000 beneficiaries from the project’s implementation.
Environmental dimension: Low Carbon Economy, Water Sustainability, and the Circular Economy
TCP Group is actively addressing the challenges of climate change through a dual approach: establishing measures and mechanisms to mitigate its impacts (Mitigation) and adapting to the changing climate (Adaptation). The company is collaborating with partner organizations to develop targets and strategies aimed at effectively tackling climate-related issues. In 2022, TCP Group achieved a 4.9% reduction in greenhouse gas emissions compared to 2020. In addition, more than 75% of the energy used in the production process comes from renewable sources, including biomass fuel and solar energy.
As an organization reliant on water as a crucial raw material in production, TCP Group is committed to promoting Water Sustainability. The company aims to achieve net positive water usage by minimizing water resource utilization and replenishing more water back to natural water sources and communities than used in the production process. In 2022, TCP Group successfully reduced its water usage rate per product unit by over 9% compared to the previous year. Additionally, the company collaborated with various agencies to further its water sustainability commitment. For example, the “TCP Embracing Thailand's River Basin” project successfully developed water sources for local communities, resulting in an increase of 2,986,893 cubic meters of water in 2022. Over the project’s five-year operational period (2018-2022), TCP Group contributed a total of 15 million cubic meters, surpassing its initial target by 12 million cubic meters. This amount is more than three times the volume of water used by TCP Group throughout its production process.
With regard to promoting the circular economy, the goal is to achieve 100% recyclable packaging by 2024. Currently, TCP Group has replaced PVC plastic with PET in more than 83% of its packaging. Additionally, the company has made progress in developing environmentally friendly packaging by reducing the thickness of aluminum cans and minimizing the weight of glass and plastic bottles, thereby reducing overall resource consumption. In 2022, a total of 211 tons of packaging was collected for reuse in both Thailand and Vietnam and over 99% of the waste generated during the production process was utilized in Thailand. Moreover, TCP Group has cooperated with domestic and international partners. For example, the International Union for Conservation of Nature (IUCN) is working on a project to expand producer responsibility regarding packaging and piloting a waste management system in the area further enhancing knowledge and understanding of waste among youth and communities.
“We have a clear commitment to operating our business in line with sustainability under our purpose of ‘Energizing a Better World for All,’ through three key strategies: Fulfilling-energizing our brand, Growing-energizing our growth, and Caring-energizing our environment with a three-year plan from 2022 to 2024. Furthermore, a crucial aspect that must not be overlooked is collaboration across all sectors, which plays an important role in achieving sustainability, as it encompasses the areas of the economy, society, and the environment,” concluded Mr. Saravoot.
