As the maker of Chang beer, Thailand’s most popular beer, and one of the largest companies in Thailand, ThaiBev recognised early that climate change posed significant risks to its operations – from floods and droughts to water pollution that could disrupt its supply chain. This awareness prompted the company to incorporate sustainability considerations into its strategic planning, making environmental resilience a core element of its long-term business strategy.
ThaiBev’s approach to sustainability
Founded in 2003, ThaiBev emerged on the scene after decades of industrialisation had brought economic growth to Thailand. However, public concerns over pollution, traffic congestion and the environmental costs of that growth grew. Many Thais, shaped by long held traditions and a cultural emphasis on harmony with nature, were increasingly uneasy about the impact of rapid development.
The late King Bhumibol Adulyadej (King Rama IX) had been a leading advocate for sustainability, promoting the Sufficiency Economy Philosophy (SEP) which affirmed that economic development should be pursued in a holistic and sustainable manner. SEP is rooted in the Buddhist idea of ‘the middle path’ and is built on three core principles – moderation, reasonableness and prudence.
ThaiBev’s approach to sustainability was inspired by the resolve of King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua (King Rama X) to ‘continue, sustain and develop’ the legacy of SEP. With its vast footprint, ThaiBev was well-positioned to do so. The firm has a vast network of over 500,000 points of sale in Thailand and maintains operations in over 90 countries. By acquiring Singapore’s Fraser and Neave and purchasing a controlling stake in Vietnam’s largest brewer, it also strengthened its international presence and became a leading beverage producer and distributor in the region.
The company built a comprehensive sustainability strategy grounded in SEP and tightly integrated with its ambitions. This strategy was articulated across the organisation and its supply chain, and was also showcased through a flagship sustainability event in the region.
ThaiBev’s multiple initiatives to promote sustainability
In 2017, ThaiBev’s Board of Directors established a Sustainability and Risk Management Committee to oversee its ESG strategy, supported by a Sustainability Development Working Team that coordinated initiatives across business units. The company further strengthened its governance structure and corporate alignment with the appointment of a Chief of Sustainability and Strategy Officer in 2022.
ThaiBev has published annual sustainability reports using the Global Reporting Initiative framework since 2012. To improve transparency, it adopted the Task Force on Climate-related Financial Disclosures framework - which provides globally recognised recommendations for companies to disclose climate-related financial risks and opportunities - in 2021. Environmental stewardship is central to ThaiBev’s agenda; having pledged to achieve net-zero greenhouse gas emissions by 2040, it aims to source half of its energy from renewables by 2030. To support this goal, it has introduced solar and biogas energy systems, installed solar panels on warehouse rooftops, and replaced conventional lighting with LEDs. ThaiBev has also integrated electric vehicles to its logistics fleet to cut emissions further. These energy transition initiatives are expected to deliver annual savings of up to US$10 million while advancing its carbon reduction goals.
Water stewardship is another key priority, given the essential role of water in the beverage business. Through harvesting rainwater and wastewater treatment at its facilities to improve efficiency and quality, it cut water consumption by more than 13% and recycled or reused nearly 12% of total water withdrawn in 2023. To safeguard its operations from climate-related risks such as flooding, ThaiBev has also constructed flood barriers, installed pumping systems, and redesigned transportation routes to maintain supply chain resilience.
By operating a closed-loop packaging collection system that retrieves glass, paper, aluminium and PET bottles for reuse, the company has applied the circular economy principles through waste reduction and recycling. In 2023, ThaiBev recovered 97% of its glass packaging, 63% of aluminium, 204% of paper and 36% of PET bottles. It aims to ensure that all beverage packaging will be reusable, recyclable or compostable by 2030 and has committed to eliminating food waste sent to landfills by the same year.
On the social front, ThaiBev’s Creating and Sharing the Value of Growth programme reflects its commitment to shared prosperity. In 2023, it invested 600 million baht across six key areas: education, health, sports, arts and culture, community development and environmental sustainability. Its flagship Connext ED programme supports Thai schools through teacher training, resources and scholarships.
ThaiBev also integrates sustainability into its supply chain through a supplier code of practice and training partners to meet environmental and social standards. In 2019, it co-founded the Thailand Supply Chain Network with eight other companies to build sustainable and resilient supply chains. By 2023, the network had grown to 990 members, extending ThaiBev’s its sustainability influence across industries.
Last but not least, ThaiBev leads regional engagement through the annual Sustainability Expo, which it co-founded. The event is the largest of its kind in Asia and brings together hundreds of organisations and over 300,000 visitors to share solutions and best practices in sustainable business.
International accolades
ThaiBev’s sustained efforts have earned international recognition. Listed on the Dow Jones Sustainability Indices since 2016, the company has repeatedly been named the Global Beverage Industry Leader, becoming the first Asian beverage company to achieve this distinction. These achievements reflect ThaiBev’s ability to combine commercial success with a commitment to sustainability, building resilience, protecting the environment and enhancing the communities it serves.
To learn more about ThaiBev’s sustainability efforts, please refer to the case study ‘ThaiBev: Brewing a Sustainable Future’, written by Assistant Professor Chiraphol New Chiyachantana, and CW Chan at the Singapore Management University and Dr Pattarawan Mai Prasarnphanich at Chulalongkorn University. To read it in full, please visit the CCX website by clicking here.
