Beyond adhering to local biodiversity conservation laws and regulations, the company collaborates with Tier 1 suppliers, subsequent suppliers, and business partners across the value chain under the biodiversity and natural resources policy. The company conducts biodiversity risk and impact assessments covering areas under direct company control (Own Operations), adjacent areas to own operations, upstream activities, and downstream activities. The company avoids business activities that impact conservation areas and protected areas as defined by the International Union for Conservation of Nature and UNESCO World Heritage Sites. Sustainable sourcing is practiced, and a tiered mitigation hierarchy is established to manage negative impacts from business operations that may lead to biodiversity loss (No Net Loss: NNL). Simultaneously, the Company is committed to collaborating with network partners and all stakeholder groups in implementing projects to restore, conserve, and create positive changes in both land and aquatic ecosystems. This measure enables net positive impact (NPI) while remediating balance and increases ecosystem diversity.

Biodiversity risks and impacts assessment

Although CP ALL's direct operations may not have a significant impact on biodiversity in the convenience store, wholesale, and consumer goods retail industry, we recognize our role in promoting production and consumption through sourcing from suppliers. The company prioritizes partners with responsible sourcing practices, sustainability, and ethics to ensure products are traceable and sourced from deforestation-free and sustainably managed areas. Nevertheless, the company remains vigilant in preventing its own operations, as well as those of its Tier 1 agricultural suppliers and business partners, from negatively impacting biodiversity. A biennial biodiversity risk and impact assessment is conducted, following a specific assessment process.

Biodiversity Risk and Impact Assessment Procedures

CP ALL has defined a scope for its biodiversity risk assessment, encompassing areas under own operations, adjacent areas, and both upstream and downstream activities. Upstream activities include sourcing, production at CP Ram factories, and distribution from distribution centers to 7-Eleven, Makro, and Lotus stores. Downstream activities involve customer-related aspects such as sales, customer service, and promotions at Makro and Lotus. A total of 616 sites were included, along with 46 Tier 1 agricultural supplier sites.

The study identified sensitive areas within a 0-5 kilometer radius of company operations and Tier 1 supplier sites that were close to Protected areas and Key Biodiversity Areas (KBAs). The status of threatened species, as listed in the IUCN Red List, was also assessed.

Basic data and coordinates of the target areas were inputted into the Integrated Biodiversity Assessment Tool (IBAT) to conduct a comprehensive risk assessment. IBAT, using various models and indicators, analyzed the data and presented the results in maps and tables, highlighting high-risk areas and the associated factors.

CP ALL screened, identified, and assessed initial biodiversity risks in the food retail industry, referencing the World Wildlife Fund's guidelines and considering site-specific factors throughout the supply chain. Both the company's potential impacts on biodiversity and natural factors affecting business operations were evaluated. The Biodiversity and Ecosystem Services Trends and Conditions Assessment Tool (BESTCAT) was used to analyze and rank current and potential future risks. By categorizing risks into three primary factors, CP ALL can effectively develop mitigation plans.

Results of Biodiversity Risk Assessment

The 2023 biodiversity risk assessment using IBAT/BESTCAT identified 52 high-risk sites out of 616 company-owned and adjacent operational areas, representing 8.44%. Among Tier 1 agricultural supplier sites, 4.35% were identified as high-risk.

Mitigation Hierarchy Management Approach

From processes in assessing both direct and indirect risk issues, including significant impacts on both negative and positive aspects of biodiversity, pest invasion, decline of plant and animal species, immigration and changes in the ecological system.

The Company respects and complies with local regulations and laws regarding biodiversity conservation with local areas in an approach to strictly review operational measures while determining guidelines for impact mitigation according to Mitigation Hierarchy from avoidance to compensation. Studies conducted on plant and animal species within respective areas determine biological sensitivity, enable follow-ups and review Company biodiversity performance in terms of direct and indirect ecosystem and biodiversity
risk mitigation in the immediate and long-term.

Avoid: Prevent and avoid activities which may impose serious consequences

The company avoids areas of water stress area by monitored and reassessed water risks in communities surrounding business operations and critical tier 1 suppliers.

Water Risk Assessment throughout the Supply Chain Project

The Company primarily uses tap water for the nationwide business operations, including manufacturing processes, laundry services, and cleanliness maintenance. Additionally, groundwater is utilized in certain areas where the Company operates, such as CP RAM Co. Ltd. and CP Axtra Public Company Limited, to mitigate and reduce the risks of water scarcity in surrounding communities, which could potentially impact the Company's business operations. The Company has efficiently managed water resources through the assessment of water scarcity risks using the Aqueduct tool from the World Resource Institute, encompassing all operational areas. The risk assessment results indicate that 39.62% of the Company's operational areas are in areas with extremely high risk.

The Company has enhanced efficiency in water resource management by assigning Water Management Working Group to develop water usage reduction plans and implementing various projects nationwide to support appropriate water conservation efforts. Additionally, the Company has conducted assessments of water scarcity risks for Critical Tier 1 suppliers, totaling 115 suppliers, using the Aqueduct tool, which provides area-specific risk assessment. The assessment results revealed that 34 Critical Tier 1 suppliers are located in areas with extremely high and high levels of water scarcity risk.

Furthermore, there is regular monitoring and evaluation of risks for these aforementioned groups of suppliers. For example, tracking the sources of agricultural products in water-scarce areas. Additionally, the Company collaborates with suppliers to mitigate water-related risks and ecosystem efficiently and legally. This includes cooperation with relevant agencies and communities to develop water risk reduction plans, restoration, and community water source development to prevent conflicts with current communities. The Company has gained 100% full cooperation from Critical Tier 1 suppliers who face high water scarcity risk, and continuously working to reduce water-related risks and impacts.

The proportion of agricultural products from critical Tier 1 supplier in water-stressed areas

Reduce: Minimize existing or potential impacts

The company reduction of environmental impacts generated from packaging reduction of environmental impacts generated from packaging

Reducing plastic waste from packaging project

Reduce volume of packaging usage from suppliers within the general waste management process, consistent with CP ALL’s circular economy goals. This aims to fulfill SDG 12.6 and CP ALL Sustainability Framework “Biodiversity and Ecosystem Protection” through packaging design, materials, and reduction programs.through packaging design selection of materials with an aim to reduce the amount of plastic waste packaging development project, to be friendly to the ecosystem and environment 7 Go Green “environmentally friendly packaging” reduces the use of plastic in packaging and integrates sustainability concepts into various operations, especially in packaging design and material selection. The joint projects between packaging suppliers include developing processes which reduce the amount of material used, etc.

“Reduce and replace” single-use plastic” project

The Company invites 7-Eleven store patrons to refuse to accept plastic spoons, forks, straws, glasses, and to carry their own cloth carry bags to reduce plastic packaging usage and continuously campaign for usage of alternative, environmentally friendly materials. In 2023, There are 3,882 million pieces plastic reductions and single-use plastics: spoons, forks, tubes and glass. 1,282 million tickets. Additionally, the Company runs the campaign "Just Refuse = Plant Trees" to support reducing single-use plastic. When customers refuse plastic bags, spoons, forks, and straws when purchasing food and beverages from 7-Eleven stores, they can exchange that for a water droplet to water trees in the 7APP. When customers accumulate enough droplets to reach the "yield" level, they can send real trees to the "Planting Forests, Planting Futures" project to increase green areas in Thailand. In 2023, customers were able to accumulate droplets from reducing plastic use and donate trees to the "Planting Forests, Planting Futures" project in a total of 843,983 trees.

Underground Water Bank Project, CP Axtra Public Company Limited

The Company treats and stores treated water for essential use and redirects excess water to allocated areas. This is to reduce water usage and benefit cultivation. This project can mitigate the impact of water scarcity conditions and foster good community relations. The Company plans to expand this pilot project to other branches in the future. In 2023, the treated water volume exceeded 36 cubic meters per day, and excess water infiltrated underground at a rate of over 16 cubic meters per day, resulting in cost savings of over 77,760 Baht per year and reducing labor hours for irrigation by 720 hours per year.

Regenerate: To rebuild or reconstruct something that has been destroyed

Sufficiency Bamboo… Toward a Sustainable Future" continuation project

Bamboo, a high demand local plant, is suffering from a market shortage and requires overseas imports. The Company collaborates with participating schools in the “Building on the future of education CONNEXT ED” project for the 3rd year running. This sustainable bamboo alliance generated income for schools through providing online education regarding benefits of bamboo, breeding, cultivation, maintenance, and processing as well as allocation of water and soil resources. Additional support for schools within the network include provisions of bamboo seedlings and marketing related opportunities and channels.

Water Efficiency Enhancement Project

The project involves utilizing natural high-temperature groundwater for cleaning equipment used in the manufacturing process to reduce electricity usage for water heating. Additionally, treat water from the manufacturing process to a higher quality than standard wastewater that is legally require, allowing it to be reused effectively. For instance, it can be used as raw water in the cooling tower system, for watering plants, and for cleaning floor areas.This reduces tap water usage in the manufacturing process by 1,090,902 cubic meters, decreases electricity consumption in the system by 346,88O kilowatt-hours per year, and enables the reuse of 674,835 cubic meters of wastewater.

Clean Water for Farmer Project

The Company has requested permission to discharge treated wastewater from the factory’s production process according to the wastewater standard from the Ministry of Industry Announcement, as announced by the Ministry of Industry,to farmers in nearby rice fields. This allows farmers in the vicinity to use water for rice cultivation and off-season rice cultivation. Moreover, this project can reduce the extraction of water from community water sources by more than 100,00 cubic meters per year and increase income for farmers by over 120,500 Baht per person per year.

Save Water, Love the Future Project

The installation of wastewater treatment systems to reuse wastewater for watering plants through automated systems within the distribution center has successfully assisted the “Rak Nam, Love the Future” project continuation since 2O18 through groundwater usage reduction and cost savings. In 2O23, a total of 72 distribution centers participated in the project, thus reducing tap water usage accumulated by 93,96O-1O4,OOO cubic meters per year.

Restore: Restoring ecosystems in affected areas

Ecosystem restoration in communities surrounding operating areas project

The Company encourages employees to volunteer and realize the importance of preserving ecosystems and the environment surrounding operating areas, including 7-Eleven stores, Makro and Lotus's distribution centers, educational institution areas, distribution centers and office buildings throughout the country. This is achieved through facilitating participation with communities, government agencies, and local administrations in tree planning activities and community tree propagation continuously every year to increase green space, create quality environments and restore ecosystems.Over 18,482 trees have been planted to date.

Mangrove Planting Project

The Company in collaboration with Mahachai Distribution Center, Surat Thani Distribution Center and communities organize annual coastal ecosystem conservation and restoration efforts, with emphasis on mangrove forest areas which serve as marine animal breeding grounds, nurseries and habitat. Forestation of 10,862 trees

Sustainable Blue Swimming Crab Alongside Thai Seas continuation project

CPRAM Company Limited has implemented the Sustainable Blue Crab Alongside Thai Seas Project for the 12 year in a row. This project utilizes supply chain management in accordance with CPRAM's FOOD 3S guidelines (Food Safety, Food Security and Food Sustainability). The parties involved from upstream to downstream include fishermen, Sirimaranong raft (raw crab meat supplier), CPRAM Company Limited (food producer) and consumers. Academic support to effectively management conservation, protection and development of crab fisheries without negative impact towards ecology, resources and the environment is provided by Ranong Provincial Fisheries Office, Ranong Marine Fisheries Research and Development Center, and the Coastal Aquaculture Research and Development Center Area 3. To increase the value of processed blue swimming crab products while complying with sanitary standards, matters relating to quality assurance standards, food security and food sustainability must be addressed. The initial project scope was based upon conservation of blue swimming crabs in the Gulf of Thailand but has since expanded to include activities in the Andaman area with the ultimate goal of preserving natural resources, maintenance of integrity, and upholding ecological balance in the Thai seas. The recent release of over 200,00 baby blue swimming crabs during the Young Crab stage back into the Thai seas increases the collective.

Transform: Changing the structure, system, or processes to be different from the original

Transform environment and nature conservation mindsets among students and communities via initiatives with upstream community

Upstream reforestation community project

The Company collaborates with 9 community groups and upstream partners to promote conservation of nature and the environment to students and communities through supporting plant seedling nurseries, budget for greenhouse construction, seedling nurseries and maintenance. Tree seedlings from nurseries within the "Reforestation" project were passed on through the “Forest Surrounding Temples” project for planting at homes, temples, schools, communities, including the project "WE GROW for ALL, we grow for everyone" for employees to plant perennial trees. Impacts and Benefits:

• 120,00 seedlings cultivated
• 600 rai area coverage
• 4,290 community members participated in the project
• Reduced GHG emission by 1,140 tCO2e

Forest Surrounding Temples continuation project

CP ALL transfers seedlings from the upstream forestation communities project to temples and communities to restore and restore ecosystem integrity and biodiversity. The aim of this project includes promoting reforestation, adding green space to the communities, creating awareness of sustainable environmental conservation, and managing resources appropriately.

Impacts and Benefits

“Forestry School Concept” continuation project

Under the Company goal of promoting the planting of 60,000 trees per year, the Company expanded the project "Sufficiency Bamboo...towards a Sustainable Future" to the "Planting Forests,Planting the Future" project. This project enabled the transfer of knowledge to schools by integrating knowledge relevant to planting trees in the content of various subject groups according to the core curriculum.

Impacts and Benefits

Cooperation with stakeholders to reduce ecosystem impact

The Company cooperates with stakeholders including suppliers, business alliances, government agencies, local communities, and Company network partners to conduct businesses with responsibility towards ecosystems and biological diversity in communities surrounding operating areas. This approach preserves the ecosystem integrity.

The Company has established goals to plant 1,000,000 trees by 2025 and has implemented projects to support community tree planting. A working group has been tasked with planting perennial trees for a sustainable community, conservation, reforestation, and foresting careers, and follow-ups within operating frameworks in 4 areas as follows:

Stakeholder engagement frameworks to reduce ecosystem impact