Circular Economy

Importance

(GRI 3-3a., GRI 3-3b., 3-3e.)

Currently, the continuous of world’s population growth has resulted in significant use of natural resources, which has increased the amount of waste produced. Therefore, OR gives importance to circular economy throughout the value chain for the most resource decoupling. This is done through reusing, waste sorting, recycling, and reducing plastic usage. To reduce the excessive use of natural resources, OR encourages their employees to use resources efficiently to its full value, as well as pushing for sustainable packaging. OR realizes that if business does not adapt and use resources efficiently there may be no natural resources left for future generations.

OR is committed to operating its business under the concept of OR SDG (Small, Diversified, Green) or creating a sustainable future through SDG in OR’s style, in order to efficiently achieve the OR 2030 goals by creating opportunities for a clean society and promoting Green business for a sustainable environmental future. This is done through the commitment to support a sustainable low-carbon society, under the environmental mission (Planet) that aims to conduct business that supports worthy and sustainable use of natural resources while preserving the environment, in accordance with OR’s business which is followed BCG Model of Bio-Economy, Circular-Economy, and Green-Economy.

Target

Management Approach

OR has an aspiration to conduct the development of sustainable organization driven by sustainability management policy in 2022. OR also announced the Quality, Security, Safety, Occupational Health and Environment (QSHE) Policy in 2023 as the operational framework which aimed at reducing the environmental impact of company activities. In addition, OR has set the Triple Bottom Line (3P) strategy focusing on the People, Planet, and Performance by setting indicators for Responsible Consumption and Production (RCP) as one of the Healthy Environment Goals within the OR 2030 Goals to reduce the use of natural resources and promoting waste management that reuses the most resource decoupling. The Sustainability, Quality, Safety, Health and Environment Department has been assigned to drive the implementation of the established strategies and goals.

Circular Economy Strategy

OR conducts its business by adopting the principles and concepts of Circular Economy, which is the key to achieving the Sustainable Development Goals. OR integrates and applies the concept to all OR establishments to focus on resource management for the most value and reduce the use of new resources from the design process to extending the shelf life of the packaging, changing consumer behavior, reducing waste caused by the production process, as well as waste disposal after the end of its service life.

Circular Economy in Action is a framework for circular economy operations, which every establishment of OR has adopted to suit business operations. It divides operations into 3 areas: reducing waste from business operations, promoting the use of environmentally friendly materials, and reducing direct use of Virgin Resources.

The strategy begins with identifying the potential wastes which may produce in each business. This is to study the possibility of maximizing the benefit of waste using. Every business involved in generating such wastes must establish a project implementation plan, as well as specify the type of wastes, methods for reducing wastes, and the amount expected to be reduced according to the specified methods and time period. The Circular Economy Taskforce is responsible for driving and following up on progress, problems and performance results of related departments against the established project implementation plans, as well as consider the ways to solve or prevent the performance in the event that the performance does not reach the set plan. The taskforce also offers the advice and promotes the continuous improvement of operations. The results of operations are monitored by the Sustainable Development Committee. In addition, the results of operations will be reported to the Quality, Safety, Health and Environment Management Committee (OR QSHE GMC) on a quarterly basis.

Circular economy operations will be presented through the Company’s media and public relations channels, including Facebook, the Company publication, television advertising media, OR’s website, etc.

Promoting knowledge and understanding of personnel regarding the circular economy

In addition to pushing for circular economy projects to become a reality in business operations in 2023, OR also promotes employees to have an understanding of the circular economy concept, as well as learning to apply the Circular Design to create business innovation, adding value to existing resources in the value chain, sparking creativity, and expanding ideas. This is achieved through organizing a workshop to provide knowledge in the course titled “BCG Economy, a new economy closes to you” by experts from Circo Hub Thailand.

In addition, to push for concrete results, employee representatives from the target business groups , the lubricant business and the Café Amazon business, have been sent to attend the “PRISM CE Workshop 2023” workshop with the PTT Group through the Petrochemical and Refining Integrated Synergy Management (PRISM) project to create concrete results with business, from the production process, to managing waste that arises from business operations and then recycling, and upcycling waste into new products.

Moreover, the companies in PTT Group had participated in the PTT Group Circular Economy Forum 2023 exhibition under the concept “Connect for a Better Future: Joining forces to create the future” with the objective of enhancing awareness and creating a learning network link to show potential and exchange experiences in running a business according to the principles of the circular economy to employees in the PTT Group, which will lead to sustainable growth. The exhibition displayed the results of the circular economy project implementation and various pilot projects from the PTT Group.

External Collaboration Projects

OR has integrated business cooperation and sustainable development with external parties by using OR’s potential to build strength and continue creating business value added. In 2023, OR and GC (PTT Global Chemical Public Company Limited) signed an MOU covering cooperation in 4 areas, including the development of knowledge in sustainability, creating energy security, sustainable business operations throughout the value chain, and business development because OR believes in the concepts of “Creating Opportunities” and “Empowering All towards Inclusive Growth”. Therefore, creating networks with external parties will strengthen sustainable business operations. Examples of projects related to the circular economy created in collaboration with GC include a scope expansion for waste management and creating closed-loop recycling. The recyclable packaging such as plastic bottles, paper, glass bottles, aluminum cans, etc., was collected through GC’s Project named “You Turn Platform” and the “Yak Lak Yim” project by OR’s PTT Station. There is also the “Yak Lak Turn” Project, where customers can bring plastic that they have ‘sorted’ to ‘exchange’ for rewards at PTT Station. New life is given to these plastic bottles through the Recycle & Upcycle process correctly, ‘turning’ them into new beneficial products. This helps reduce plastic waste problems and greenhouse gas emissions.

OR has initiatives to implement the concept of the circular economy which can be seen through Café Amazon, a Thai coffee brand that has been supporting Thai people for 20 years. Currently, Café Amazon operates more than 4,500 branches in global market and 4,100 branches in Thailand. Café Amazon adheres to the principle of operating a business that strives to develop society’s economy in tandem with caring for the community and the environment.

OR has continuously implemented waste reduction activities, from reducing the amount of plastic used in the sale of products, by using waste from production and consumption to create new products through upcycling and expanding the utilization of such materials to B2C (Business to Customer) and B2B (Business to Business) franchise customers in order to raise awareness of environmentally friendly production processes and consumption. Furthermore, OR has adapted by using biodegradable supplies within its stores to reduce environmental burdens and impacts throughout the OR’s value chain.

Performance

Packaging and Plastic Management

OR’s businesses involve with many types of plastic packaging. Improper management of such packaging may cause negative environmental impacts. Therefore, OR has pushed for various projects to reduce plastic packaging from its business operations and to seek opportunities to use environmentally friendly packaging.

1. Designing packaging with environmentally friendly raw materials by passing Café Amazon’s packaging through biodegradable materials, such as Café Amazon Bio Cups (PBS coated paper cups for hot drinks / PLA plastic cups for cold drinks) and biodegradable straw, are the eco-friendly and 100% biodegradable innovations from the PTT Group. Additionally, paper bags have been used instead of plastic bags in Café Amazon, which can reduce approximately 1,900 tons of waste per year.

The “Self Pick-Up, Don’t Separate, No Bags” project is an outcome of Café Amazon and Grab collaboration. The objectives are to encourage delivery users in reducing disposable plastic waste. The service user can choose “Self Pick-Up”, “Do not separate ice”, and “No plastic bags”.

The Café Amazon go green project adheres to maximize the benefit from using natural resources and create sustainable use of natural resources while preserving the environment, consistent with business operations according to BCG (Bio-Circular-Green Economy) Model, with operating results as follows:

Employee shirts and aprons for baristas at all Café Amazon branches are made from upcycled materials from used PET plastic cups and bottles. The used PET plastic will be broken down into small pieces and sent to heating process at the high temperature of around 180-220 degrees Celsius to melt the plastic. It is then extracted into recycled fibres using a plastic extruder and sent to a textile factory to design a weaving pattern to be woven into fabric and sewn into products.
Every Café Amazon branch uses decorative materials and furniture that are environmentally friendly according to BCG (Bio Circular Green) Model to contribute to the goal of Circular Economy.
Café Amazon Concept Store is a special prototype format which fully implements the concept of Circular Economy through the use of decorative materials and furniture that are 100% environmentally friendly according to BCG (Bio Circular Green) Model, such as interior walls, tables, chairs, coffee counters, shelves, lamps, and artificial trees.
Upcycled products made from PET plastic bottles and cups are being developed for sale in Café Amazon.

Changing consumer behavior is encouraged to reduce the use of resources and packaging, such as promoting the use of fabric bags and offering discounts for customers who bring their personal cups to use at Cafe Amazon branches, etc. In 2023, the use of plastic cups was reduced by 460.79 tons.

The “Cup Return” Project aims to encourage consumers to return cold drink packaging (PET) to Café Amazon for recycling process and producing valuable upcycled products for maximize the benefit. The AI technology is used for data collecting and points recording for customer who return the PET packaging to Café Amazon. This project presents the good perception for Café Amazon Brand in which appropriate Post – Consumer Waste management with Closed-Loop Recycling concept. The project has first implemented in 10 branches of Café Amazon since October 2023 until the present which collected more than 11,000 PET cups from more than 700 customers participating in the project. OR is currently considering further expansion of the project.

The “Yak Lak Yim” Project, with the purpose of campaigning for proper waste separation in PTT Stations and creating benefits for society, takes recycled waste and turns them into scholarships, consumer tools, and public utilities in various communities. The project has been implemented continuously since 2016. In 2023, there has been a collaboration with “You Turn”, project by GC, to collect recycled waste into a standard recycling plant. This create confidence for customers, who separate recycled waste through the “Yak Lak Yim” bin in PTT Stations, that the recycled waste will be appropriately recycled by the qualified recycling plant. Since the beginning of the project in May, a total of 9.4 tons of waste were collected and recycled, valued at 19,000 THB, and used to make upcycled sports shirts and sports hats to be distributed to the community.

7. The Pail and Gallon Lubricants Project recycles used packaging of PTT lubricant from all branches of FIT Auto automotive service centers nationwide. Used lubricant packaging are used, combined with other recycled materials and biomaterials, to produce Wood Plastic Composite furniture to decorate the interior of the sales room of the Fit Auto automotive service centers. In 2023, 56.57 tons of used lubricant cans were collected from every branch of FIT Auto nationwide, amounting to wood plastic composite furniture made from recycled plastic sufficient to furnish 12 branches of FIT Auto automotive service centers.

The lubricant business has established guidelines for purchasing environmentally friendly packaging. The proportion of recycled materials used for the middle layer of an 18-liter lubricant packaging is determined by not less than 30% without affecting the quality of the packaging.

Food Loss and Food Waste

Food loss and food waste is a challenging problem for retail businesses. Thus, OR aims to operate its businesses in a way that promotes the most efficient use of natural resources. OR is committed to reduce food loss and waste by reviewing the production processes and waste management in every related OR business. Moreover, OR formulates a strategy to use resource efficiently, through food waste reduction activities, alternative uses for food waste, and raising awareness among employees and stakeholders along the OR value chain. OR has collected data on the amount of food loss that occurs within the related businesses, including Café Amazon Roastery Plant, Bakery Plant, and Dry Mix Plant to monitor the performance and set a suitable plan to reduce the amount of food loss in the future.

Projects

The Food Loss to Fertilizer Project collects food loss from the production process of the Café Amazon business, such as coffee chaff (from the Café Amazon Roastery Plant). In 2023, there was 77.18 tons of coffee chaff, which were used to produce of soil improvement materials (fertilizer).
2. The Used Cooking Oil to Biodiesel (B100) Project collects used cooking oil from Texas Chicken to process and produce B100 to be sold back to OR. In 2023, 186,804 liters of used cooking oil was collected to produce of B100 for further utilization.

Product waste management

Managing product waste for maximum utilization is one of OR’s commitments to reduce the amount of waste generated from the Company’s business operations. Related projects include: