Sustainability and Corporate Governance Committee (Board-level Committee)

Sustainability and Corporate Governance Committee is chaired by an independent director from the Board of Director. The Committee members include the Chairman of Audit committee, the Chairman of Remuneration and Nomination Committee and a member of Executive Committee. Quarterly meetings are scheduled for the Committee in order update and discuss on sustainability performance including climate change topic and report to the Board of Director at least twice a year. As an annual process, the Committee reviewing and guiding annual budgets overseeing major capital expenditures, guiding employee incentives, reviewing and guideline climate strategy, overseeing and guiding the development of a transition plan, overseeing and guiding public policy engagement and reviewing and guiding the risk management process related to Climate issues. the Committee takes climate-related roles and responsibilities according to its charter as follows;

1) Frame policy and guideline on promoting innovation, environmental social responsibility (including climate change topic), and sustainable development plan
2) Oversee and ensure that the Company’s Board of Directors and executives act in full compliance with the established sustainability policy as well as review and assess the result
3) Report the results of the various activities undertaken, the results of the assessment of the compliance and the key issues relating to environmental social responsibility, and sustainable management to the Board of Directors at least twice a year
4) Oversee, ensure and monitor the progress of the activities of the various Sub Committees established by the Sustainability and Corporate Governance Committee (e.g. Sustainable Development Sub-Committee), and give recommendations and support as necessary. The Sustainability and Corporate Governance Committee has a direct supervision over climate-related policy, strategy, action plan, risk and opportunity management through Sustainable Development Sub-Committee
5) Coordinate with various sub-committees and working groups in considering issues related to environmental social responsibility, and sustainable management and give recommendations as necessary
6) Encourage and support the Company to communicate with Directors, executives, employees at all levels and related parties in an adequate and continuous manner, so that they will all be fully aware of and understand sustainability policy, and related guidelines
7) Oversee the completion of sustainability report and getting approval from the Board of Director prior to public disclosure.

Sustainability Sub-Committee

Developing a climate transition plan Implementing a climate transition plan Integrating climate-related issues into the strategy Setting climate-related corporate targets Monitoring progress against climate-related corporate targets Assessing climate-related risks and opportunities

Sustainable Development Sub-Committee as an important mechanism in driving processes and ensuring that executives and employees of the Company and its subsidiaries correctly and completely understand and earnestly practice business ethics and sustainable development of the organization. This is considered part of the Company’s organizational culture that the top management has established as the corporate governance observance that is one of the organization’s strategies and objectives. Both sub-committees must report to the Sustainability and Corporate Governance Committee every quarter .Responsibilities of the Sub-Committee include;
1) Reviewing policies, strategies, action plans and KPIs in environmental management including climate change. The results are reported to the Committee for approval annually
2) Evaluating emerging trends, climate risks and opportunities that could potentially affect business
3) Ensuring the alignment of business operation with sustainability policies, strategies, action plans and KPIs including elements related to climate change
4) Promoting understanding and providing recognition for employees of all levels to enable effective realization of the sustainability policies and guidelines
5) Monitoring progress and performance on sustainability topics including climate change.

Risk Management Committee

The Risk Management Committee has the following roles and responsibilities:

1.Review and refine draft risk management policies and frameworks before presenting them to the Board of Directors
2.Review risk assessments and risk management plans and provide recommendations or guidelines to mitigate risks to an acceptable level and ensure adequate risk management to achieve strategic objectives and create value for the organization
3.Regularly report to the Board of Directors on significant risks, risk status, and progress or results of risk management
4.Review and update the risk management framework and policies to ensure alignment with the organization's business context and environment

Corporate Sustainability Management Division

environmental management acts as a focal point in coordinating with relevant functions to monitor climate-related topics, at monthly to yearly interval depending on the nature of topics. The results are reported to the Committee at least semi-annually. Additionally, climate-related data will be consolidated annually and presented to the Sustainability and Corporate Governance Committee for reviewing as part of sustainability reporting process.

The involvement of top managements across the entire organization in this Sub Committee makes it a robust platform to exchange information, discuss key climate topics, form mutual commitments, and collaborate towards the goals.

1.Senior Vice President, Corporate Asset and Facilities Management is entitled to monetary incentive from energy efficiency management. His KPI is directly tied with over all facilities’ store energy reduction with 10% weight. The SVP is also responsible for driving innovative energy management at stores and increasing proportion of renewable energy in energy portfolio. The SVP also leads energy conservation committee whose KPIs are tied with “energy reduction and efficiency performance” cascaded from the Corporate Sustainability KPIs.

2.Assistant Vice President, Social and Environmental Management is entitled to monetary incentive from GHG emissions reduction. His KPI is directly tied with over all GHG emissions reduction and Promote Green product  with 40% weight. The AVP is also responsible for driving innovative GHG emission management. The AVP also leads 7 Go Green committee whose KPIs are tied with “Carbon Neutral by 2030 and Net Zero GHG Emissions by 2050” cascaded from the Corporate Sustainability KPIs.

The KPIs of other executives are also tied with a pool of KPIs that links with Corporate Sustainability KPIs to drive performances across functions.

1.Business Unit Managers are entitled to monetary incentive from energy reduction and efficiency performance. Their KPIs i.e. energy reduction and efficiency performance are cascaded from the Corporate Sustainability KPIs. Furthermore, Business Unit Managers who take part in Energy Conservation Committee also have the KPI directly tied with Corporate Sustainability Score (derived from DJSI score).

2.Business Unit Managers are entitled to monetary incentive from GHG emissions reduction performance. Their KPIs i.e. GHG emissions reduction performance are cascaded from the Corporate Sustainability KPIs. Furthermore, Business Unit Managers who take part in 7 Go Green Committee also have the KPI directly tied with Corporate Sustainability Score (derived from DJSI score).

Inundation

• 7-Eleven Interruption to services provided by 7-Eleven stores
• 7-Eleven staff experience flooding
• Decreased income of 2177 million Baht due to fewer sales at 7-Eleven stores
• Loss of sales opportunity due to disrupted product logistics from distribution center
• Costs to prevent floods increased by 30 %

• 7-Eleven interruption to product delivery to 7-Eleven stores
• 7-Eleven customers are unable to access 7-Eleven stores and select products
• Communities surrounding 7-Eleven stores experience flooding

The Company has designed protective measures for 7-Eleven stores to withstand damage from floods under the concept of “Stores Combating Water”. Under this concept, various aspects were considered, such as high walls, floor designs, doors that can hold against the force of water, piping system and pumps. In the event of a flood, the Company has devised management plans in 3 stages, as follows:

• Before the event (prevention and preparation) At this stage, relevant departments will closely monitor weather conditions and conduct a risk assessment of the situation so that store staff can prepare to move equipment and goods to a safe location. Additionally, equipment is prepared to prevent water from entering 7-Eleven stores. Equally important, facilities are provided to store staff to make the situation more convenient in case of flash floods.
• During the event (Response)
  - If a flood occurs in the vicinity of a 7-Eleven store, staff must be on alert for the possibility of water entering the store and be ready to move equipment and goods to a safe location. Staff must also report the situation to the flood response center.
  - If water has flooded into a 7-Eleven store, staff must turn on the pump to drain water out from the store and prepare to safely evacuate to designated evacuation points
  - If the flood height exceeds 3O cm or a flash flood occurs at a 7-Eleven store, staff must evacuate to designated assembly points and prepare first aid for injured staff. Support in the form of food, beverages and temporary accommodation will also be provided to affected staff
• After the event (Restoration and remediation) The Company will check equipment and restore the damaged 7-Eleven store. In the same time, the Company will provide care to affected staff according to the Company’s welfare services, provide survival kits to others who are affected and support the community

Drought / Brackish water

• Lower production and product quality
• Shortage of agricultural products and raw material
• Increased expense for equipment with fouling at 13 million Baht

• Lower agricultural yield and scarce raw material from partners
• Supplier product quality and standards compliance issues
• Consumers may be contract intestinal ailments from consuming products that are not of standard quality

• Order water reserve tanks to store reserve water and use it to produce drinking water and general usage water in affected areas or in areas experiencing a water shortage Longer than 1 week
• Order general usage water to preserve water that is used specifically for producing beverages in areas experiencing water shortage or poor water quality
• Installation of Reverse Osmosis (RO) systems in areas with salty water, including seaside areas or areas with high hardness groundwater, to enable usage of compliant quality water
• Install an air-water system to draw water from the air and treat it to produce quality water for 7-Eleven stores in areas with water shortage or in areas with high humidity/li>
• Experts share knowledge and provide consultation to farmers to prevent scarcity in production’s raw materiality. This includes fertilizing soil to be optimal for cultivation, plantation, sorting, housing, as well as utilizing technology to enable automatic water control, online data collection and productivity monitoring
• Allocate treated water with quality above legal requirement from the plants’ natural pond water treatment to farmers in the plants’ vicinity. This helps prevent scarcity of crucial production raw material

Regulations on Plastics

• Risk: Increased expenses for sourcing alternative materials, estimated at 538 million Baht
• Opportunity: Promoting reputation in plastic waste management and services that promote reducing greenhouse gas emissions

• Opportunity: Building confidence among stakeholders regarding the Company's plastic waste management
• Opportunity: Encouraging suppliers, consumers, and communities to reuse plastic waste

The Company has prepared its readiness and developed its plastic waste management roadmap from 2O18 to 2O3O by applying the Extended Producer Responsibility (EPR) Framework. The roadmap was established to drive the reduction of pollution caused from plastics and shape the Company as a leader in reducing the use of plastic bags and single-use plastics through various plastic management projects, such as placing a symbol on products made from recycling, plastic reduction and discontinuation, and a project to recycle plastic waste into 7-Eleven bags

Marketing

• Risk: Expenses from investing and developing low carbon and green packaging
• Opportunity: Innovations on low carbon packaging
• Penetrating new customer markets
• Opportunity: Increased market share for the business and generated income and profits to grow the business in the long term
• Opportunity: Stronger reputation for services that support GHG emissions reduction

• Opportunity: Stakeholders have a positive perception of the Company’s brand
• Opportunity: Consumers are encouraged to select low carbon and green products

• Develop environmentally friendly products and prioritize reduction of greenhouse gas emission in the production process, from sourcing to production process, logistics, consumption and end-of-life management
• Certified for carbon footprint product label from Thailand Greenhouse Gas Management Organization (TGO) to raise consumers’ awareness

Reputation

• Risk: Lower demand for goods and services from negative perceptions of the Company
• Risk: Stakeholder expectations for the products, services and business approach may influence the brand’s reputation

• Opportunity: Stakeholders have a positive perception of the Company’s brand
• Opportunity: Promote consumers’ opting for low carbon and environmentally friendly products

• Establish green policies and targets for business operations
• Establish the “7 Go Green” Strategy and projects to drive environmental goals
• Adapt green marketing strategy to be used in business
• Organize marketing activities or create campaigns for the environment continuously, such as the "Just don't accept = plant trees" campaign"