Management Approach

The Company continues to pursue proactive goals under the "7 Go Green" strategy. Additionally, the Company has elevated its energy management practices to the ISO 14001 standard and implemented projects within the framework of the 7 Go Green strategy. Several projects were initiated under the strategy, such as the Green Store Project, Green Logistics Project, Green Packaging Project and Green Living Project.

However, the fluctuating energy prices, energy shortages in the global market, and political instability worldwide have led to an overall increase in energy prices in Thailand. This directly impacts the costs and returns of business operations. Therefore, the Company has reduced unnecessary energy consumption, improved energy efficiency, increased the proportion of renewable energy usage, and continuously developed clean energy technologies to mitigate environmental impacts and enhance business resilience and sustainability alongside continuous organizational development.

Environmentally friendly shops, retail centers, distribution center and manufacturing plants (Green Store)

The Company operates under the environmental strategy "7 Go Green" consistently throughout its value chain. This includes continuous efforts to improve energy efficiency and increase the proportion of renewable energy usage. As a result, the Company is able to reduce energy costs and greenhouse gas emissions from its business operations. In 2023, projects supporting the Green Store strategy were implemented in four operational areas, as follows:

Increase power management efficiency

Increase renewable energy usage proportions

Improve cooling systems and utilize environmentally friendly refrigerants

Cultivate consciousness and change employees' behavior

Main Project	Operations Overview	Operations Area	Performance in 2023
Increase energy management efficiency	Replaced old light bulbs with LED bulbs, which are highly efficient, durable, safe, with a long lifespan, and save maintenance costs	7-Eleven stores	Replaced LED bulbs in 1196 branches Reduced energy expenses by 2.59 million Baht per year Decreased electricity usage by 457 MWh Reduced greenhouse gas emissions by 228 tCO2e
	Developing microwave equipment into an inverter system		Reduce energy use by 3880 MWh per year Reduced greenhouse gas emissions by 1715 tCO2e
	Replaced old light bulbs with LED bulbs	Makro’s Wholesale Center	Reduce energy use by 2328 MWh from the project to reduce energy use Reduced greenhouse gas emissions by 1163 tCO2e
		Lotus’s Retail Stores	Replaced LED bulbs in 46 branches Reduced total electricity usage by 2163 MWh Reduced greenhouse gas emissions by 1146 tCO2e
	Used an Automatic Voltage Regulator (AVR) to automatically adjust and reduce the electrical voltage from the power source to a suitable and stable level, allowing for energy savings by minimizing electricity losses due to excessive voltage	Lotus’s Retail Stores and Lotus’s Go Fresh	Installed automatic voltage regulators in 598 branches Reduced total electricity usage by 15458 MWh per year Reduced greenhouse gas emissions by 8193 tCO2e
	Installed a Building Energy Management System (BEMS), which is a system for managing the on-and-off of the operation of main machinery in the building to conserve and enhance energy efficiency, as well as monitoring abnormal energy usage from sub-meters and sensors, while also collecting data for analysis and evaluation of the building's energy management	Lotus’s Retail Stores and Lotus’s Go Fresh	Installed energy management systems in 446 branches Reduced electricity usage by a total of 5689  MWh per year Reduced greenhouse gas emissions by 3015 tCO2e
	Utilized a Building Automation System (BAS) in the building to control energy management, collect data, and evaluate the performance of the electrical system to efficiently utilize energy	Panyapiwat Institute of Management, EEC Campus, SKY BRIGHT CENTER Building	Utilized 587 tCO2e
Increasing the proportion of renewable energy usage	Installed solar rooftop panels to generate electricity from solar energy. The panels are installed on the roof	7-Eleven stores	Installed solar rooftop in 2671 branches Utilized electricity from solar rooftop by a total of 62944 MWh per year Reduced greenhouse gas emissions by 27821 tCO2e
		Makro’s Wholesale Center	Installed solar rooftop in 115 branches Utilized electricity from solar rooftop by a total of 39502  MWh per year Reduced greenhouse gas emissions by 37046 tCO2e
		Lotus’s Retail Stores and Distribution Centers	Installed solar rooftop in 138 สาขา (3 hypermarket branches and 135 mini supermarket branches) Utilized electricity from solar rooftop by a total of 8185 MWh per year Reduced greenhouse gas emissions by 4338 tCO2e
		CPRAM Factories	Installed solar rooftop in 7 branches Utilized electricity from solar rooftop by a total of 7360 MWh per year Reduced greenhouse gas emissions by 2812.97 tCO2e
	- Solar water heater - Solar tube technology within the main office building	Makro's Wholesale Center and Head office	Decreased greenhouse gas emissions by 44165 tCO2e
	Solar Water Tube for use in the water boiling process and hot water heating system	CPRAM Factory (Lat Krabang)	Reduce electrical energy use 90 MWh per year Reduce the use of natural gas 1608 MMBtu per year Reduced greenhouse gas emissions by 45 tCO2e
	Utilized geothermal energy from underground hot water to wash equipment in the production process, which can replace the use of electricity for the steps in water heating	CPRAM Factory (Lat Lum Kaeo)	Reduce electricity consumption by 346.88 MWh per year Reduced greenhouse gas emissions by 173.41 tCO2e
Improving the cooling system and use environmentally friendly refrigerants	1. Installed Air Ceiling certified with the Level 5, 3 Stars label from the Provincial Electricity Authority (PEA) and utilizing environmentally friendly refrigerant R32, totaling 2,474 units 2. Installed Air Cassette certified with the Level 5, 3 Stars energy label from the Provincial Electricity Authority (PEA) and utilizing environmentally friendly refrigerant R32, totaling 4,318 units 3. Upgraded the cooling system of the Open Showcase refrigerators to a centralized type, with 2 units per 1 hot coil, and improved the insulation of 5,4OO equipment systems 4. Energy-saving project: Adjusted the parameters of equipment to be suitable for current storage conditions (Set point reduction) for 1O,771 units	7-Eleven Stores	Reduced energy-related costs by 301.79 million Baht per year Reduced electricity consumption by 53320 MWh per year Reduced greenhouse gas emissions by 23567 tCO2e
	Using low carbon refrigerants, refrigerants with low greenhouse gas emission factors such as R29O, R-448A	Makro’s Wholesale Center	Reduced greenhouse gas emissions by 41549.06 tCO2e
	Replaced the AC Split Type Fixed Speed air conditioning units with high-efficiency, Variable Refrigerant Flow (VRF) systems (SEER = 18), which can reduce machine operation according to temperature load conditions	Lotus’s Retail Stores and Lotus’s Go Fresh	Replaced high-efficiency VRF air conditioners in 39 supermarket branches Reduced electricity consumption by 3334.58 MWh per year Reduced greenhouse gas emissions by 1767 tCO2e
	Utilized Solstice N4O refrigerant (R-448A) with reduced energy consumption by up to 64%, having a GWP of 1,273 and being non-flammable, with the lowest possible GWP value		597 branches Reduced greenhouse gas emissions by 2669.80 tCO2e
Cultivate awareness and change employee behavior	Organized training on "Energy Saving Guidelines for 7-Eleven Stores" for employees preparing for promotion to district manager positions	7-Eleven Stores	Number of trained employees 45 people
	Arranged campaigns promoting efficient energy usage at the branch level to stimulate awareness among employees regarding efficient energy usage and energy conservation	Lotus’s Retail Stores and Lotus’s Go Fresh	Number of Lotus's Branch Managers, cashiers, and maintenance technicians participating in the project: more than 2600 individuals Electricity usage reduction 877 MWh per year representing a decrease of 0.5% compared to before joining the project

Environmentally friendly transportation and distribution (Green Logistics)

In 2O23, the Company managed transportation and distribution activities under the "7 Go Green" environmental strategy to develop environmentally friendly transportation systems. The main operations included energy management and reducing fuel consumption in transportation management to decrease greenhouse gas emissions. Supported projects under this strategy included:

Main Project	Operations Overview	Operations Area	Performance in 2023
Increase energy management efficiency	Replaced old light bulbs with LED bulbs	7-Eleven stores	Converted to LED lighting in 20 Distribution Decreased electricity usage by 28 million Baht per year Decreased electricity usage by 7172 MWh per year Reduced greenhouse gas emissions by 3443 tCO2e
Developing microwave equipment into an inverter system	Installing solar rooftop panels to generate electricity from solar energy s installed on the roof	7-Eleven Distribution Center	Install rooftop solar at 20 distribution centers Utilized electricity from solar rooftop by a total of 8359 MWh per year Reduced greenhouse gas emissions by 3694 tCO2e
Increasing the proportion of Electric Vehicle (EV) trucks for transportation and EV motorcycles for service delivery	The pilot project of 4-wheel Electric Vehicle (EV) trucks for transporting goods from distribution centers to 7-Eleven stores. The expansion in the Bang Bua Thong district area, a total of 12O branches	7-Eleven Distribution Center, Bang Bua Thong Center	Total number of 4-wheel electric trucks 14 vehicles Reduced greenhouse gas emissions by 20653.74 tCO2e
	- Transitioning to electric forklifts - Transporting goods using electricity and hydrogen energy	Makro's Wholesale Center	Decreased greenhouse gas emissions by 80632.93 tCO2e
	Used 1OO% Electric Powered (EV) motorcycles for 7Delivery service to deliver products and installing electric vehicle charging stations (continuously) in front of 7-Eleven stores	7-Eleven Stores	Total number of electric motorcycles 1749 vehicles Electric vehicle charging stations 22 stations Reduced greenhouse gas emissions by 1020 tCO2e
Promoting environmentally friendly transportation systems	Expanded the operation of changing transportation vehicles at every distribution center to accommodate more goods per trip. From 4-wheel trucks to larger trucks, such as jumbo trucks, which can carry more goods of up to 3O% per trip. Additionally, utilizing the Territory Planner (TP) program to optimize transportation routes, reducing delivery distances per trip and saving fuel.	7-Eleven Distribution Center	Reduced transportation distance by 33.4%

Research and Development of Energy-Efficient Appliances for 7-Eleven Stores in Collaboration with Partners

CP ALL is committed to sustainability with the ambitious goal of achieving carbon neutrality by 2030 and net-zero greenhouse gas emissions by 2050. One of the key strategies to achieve this goal is to enhance energy management efficiency by continuously developing and implementing energy-saving appliances in its 7-Eleven stores. To achieve this, the company has forged strong partnerships with various suppliers to collaborate on research and development initiatives. Here are some notable examples of these collaborations as follows:

As exemplified by CP ALL's collaboration with suppliers in researching and developing energy-efficient devices, these efforts have led to significant energy savings for CP ALL

Future Goals and Plans

CP All remains committed to collaborating with partners to continuously develop and utilize energy-saving devices. The company aims to control the growth of net total energy consumption by 25% compared to business-as-usual (BAU) by 2030 under its 7 Go Green strategy. The plan covers four key areas:

Increase power management efficiency

Increase renewable energy usage proportions

Improve cooling systems and utilize environmentally friendly refrigerants

Cultivate consciousness and change employees' behavior

Energy audits to identify opportunities for improving energy performance

CP ALL continuously collects, monitors, reviews, and analyzes data on energy all operational areas, including manufacturing facilities, distribution centers, 7-Eleven stores, Makro and Lotus sales centers, and offices. Assessments are conducted quarterly using three primary methods:

1) For manufacturing, and distribution facilities, energy performance are conducted according to ISO 14001:2015 standards and ISO 50001:2018. In 2023, CP Ram's facilities in Ladlumkaew, Boen, Ladkrabang, Chonburi, Surat Thani, Khon Kaen, and Lamphun were ISO 14001:2015 certified and CPRAM Chonburi ,CPRAM Ladkrabang ,CPRAM Latlumkaeo were ISO 50001:2018 certified.

CPRAM ISO 14001 Certificate for Ladkrabang Factory

CPRAM ISO 14001 Certificate for Chonburi Factory

CPRAM ISO 15001 Certificate for Latlumkaeo Factory

2) For facilities located in industrial estates, waste management ,wastewater treatment are assessed by the Industrial Estate Authority of Thailand (IEAT) or independent      third-party auditors according to international standards such as ISO 14001:2015, industry-specific standards, and estate-specific standards.

3) For sales centers and offices not located in industrial estates, our central greenhouse gas management unit assesses waste management practices to identify opportunities for improvement and reduce impacts on food waste and ecosystems.

Total energy consumption 2023