Mitr Phol Group Sustainability

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Key Stakeholders: Shareholders/ Communities/ Customers and Consumers/ Government and Civil Society Sectors

As a leading company in the agro-industrial sector, Mitr Phol places great importance on environmental stewardship. The Company recognizes that its operations not only impact local communities and the environment but also rely on nature and social acceptance. In its pursuit of business growth, Mitr Phol is committed to prevent pollution and to uphold social responsibility. These practices boost the immune system of both the business operator and the community, ensuring sustainable business development.

2023 Target and Performance
Target
Performance
Sugar mills and biomass power plants achieve ISO14001 certification.
12 sites
12 sites
Serious environmental complaints are received.*
No serious environmental complaints are received.*
No serious environmental complaints are received.*

*Serious environmental complaint means significant social opposition involving a large group of people, which prompts the activation of a business continuity plan or an order to cease operations under Section 39 of the Factory Act B.E. 2535.

Management Approach

The Board of Directors has established a clear Security, Safety, Occupational Health, and Environmental Policy and supported necessary resources for the development of preventive, monitoring, and mitigation measures as well as inspection of environmental systems. Each factory has a dedicated environmental unit to implement these measures, raise awareness, and disseminate information to workers, farmers, communities, and stakeholders. Joint meetings with senior management from the sugar and affiliated power sectors are conducted at least once a month to monitor environmental issues, solicit feedback, and exchange information. Internal and external stakeholders are provided with multiple channels to report information, offer recommendations, or file complaints about environmental impacts. In other business groups, the Occupational Safety, Health and Environment Committee (COM) meetings are held at least once a month with the presence of management of the factory, focusing on safety and environmental issues. The Company has established a trilateral committee for large factories in accordance with the Environmental Impact Assessment (EIA) requirements, and a Community Committee for power plants under 9.9 MW. These committees, comprising representatives from factories/plants, the government sector, and communities, serve as a platform for sharing opinions and offering recommendations aimed at improving the sustainability of the environmental management system and the effectiveness of environmental development.

The Company’s environmental management complies with the international ISO 14001 standard, which includes setting an environmental policy, formulating a plan to address the policy, understanding the organization as well as its context and stakeholders, assessing environmental risks and issues, supporting implementation and operations, monitoring and corrective actions, and continuous review and improvement. The Company has set the following guidelines for identifying issues and assessing environmental impacts.
The Management
Setting a policy, allocating resources, delegating authority to Environmental Management Representatives (EMRs), and establishing an Environmental Management Committee, with the EMRs serving as the key drivers of the system.
Engineers/Section Managers /Responsible Persons
Identify problems and assess environmental impacts to determine levels of severity and mitigations to reduce problems and impacts. Environmental problems are listed below.
  • Utilization of raw materials and natural resources
  • Energy consumption
  • Air pollution emissions
  • Effluent discharge
  • Land disposal
  • Energy release
  • Waste generation
  • Land use
  • Other environmental impacts
    • EMRs and Engineers/Section Managers /Responsible Persons
    Identify key issues for environmental protection, and establish environmental goals, objectives, and plans. This includes preventive and mitigative measures implemented by the Environment Committee, which is responsible for reviewing, approving, monitoring, and reporting on performance to management for continual improvement.
    Section Managers /Department Managers/Working Committee/ Responsible Persons
    Monitor and evaluate the effectiveness of measures, review and address environmental issues, and present the outcome to the management at least once a year.

    By implementing these guidelines, the Company is able to identify stakeholders, analyze and assess risks and opportunities related to pollution prevention and environmental protection, improve environmental management, ensure compliance with legal and other relevant requirements, and achieve environmental targets, leading to greater transparency and building trust among stakeholders.

    In addition, Mitr Phol aims to achieve Multi-site Certification by 2024, which encompasses certifications of the Environmental Management System (ISO14001) and the Occupational Health and Safety Management System (ISO45001) under a single system for 12 sugar mills and biomass power plants. This is expected to enhance and broaden the scope of the Environmental Management System (EMS) and ensure compliance with international standards.

    Industrial Water Management

    Raw Water and Utility Water

    Mitr Phol has estimated water availability from upstream to downstream and assessed the potential impacts of water stress for the years 2030, 2040, and 2050 using the Standardized Precipitation Evapotranspiration Index and the Aqueduct Water Tool. The Company has collected weather forecast data across all sugarcane plantation areas to assess access to various water sources, such as natural water bodies, artesian wells, and farm ponds, focusing on farmers dependent on rainfall. Based on the analysis, Mitr Phol has developed a comprehensive water resource management plan, which includes forecasts of irrigation water demands, a sensitivity analysis, a sugarcane cultivation plan, and water management for business operations. Throughout 2023, the Company has monitored water availability in terms of both quantity and quality, including the readiness of water sources, reservoir levels, water quality, and related water conditions. Mitr Phol has also collaborated with water management stakeholders, a key driver of sustainable water management. This includes jointly developing solutions to water management challenges and mitigating the potential impacts of local communities’ finding access to water.

    Furthermore, the Company has set the objectives to manage raw water consumption and monitor sugar content in sugar mills to minimize undetermined losses primarily caused by the contamination of sugar cane syrup and sugar at various stages of the production process. By effectively reducing these sugar losses, the Company can also significantly reduce water consumption and wastewater discharge. The Company aims to limit food losses and waste to 0.17 tons per ton of sugar sold. To achieve this target, a working committee has been established to identify measurement points, report results, and follow up on the issues.

    The assessment of future potential regulatory changes at a local level: Mitr Phol’s Compliance Division is responsible for monitoring laws and regulations that could impact the company’s operations, particularly those related to water risk. This division also ensures that any new laws or regulations are communicated to the operations team and suppliers, ensuring that everyone involved is aware of and can comply with these changes. This proactive approach helps Mitr Phol manage risks and maintain compliance with relevant legal requirements. Moreover, representatives of the Company are sent to join conferences/ seminars; hosted by the government where new laws and regulations are discussed. This ensure that Mitr Phol is always up to date on the potential / upcoming legislations.

    Waste Water

    Mitr Phol has adopted the 4Rs principle (Resource, Reduce, Reuse, and Recycle) by securing surface and groundwater sources as a backup source of water supply, reducing water consumption in the production process, reusing water within the production process, and recycling treated water to mitigate the impacts of water consumption in Mitr Phol's business operations.

    The Company has implemented a variety of wastewater treatment systems tailored to the quality of the wastewater and the plant location. These include oxidation ponds, which consist of anaerobic ponds, aerated ponds, and activated sludge systems. The treated effluent must meet the standards set forth in the Ministry of Industry's regulation on the standards for the discharge of industrial effluents, B.E. 2560, and the Notification of the Ministry of Science, Technology, and the Environment, No. 3 (B.E. 2539), Re: Effluent standard for factories in industrial estates. In 2022, the aerated section of the oxidation pond at Mitr Phol Dan Chang Complex in Suphan Buri Province was upgraded to an activated sludge system. This new system now treats all wastewater from the Mitr Phol Dan Chang Complex's business operations, including the sugar mill, power plant, and ethanol plant. This change offers several benefits, as follows:

    Air Quality Management

    The Company has taken several measures to prevent and manage air pollution as follows:
    • Air quality monitoring The Company has launched an advanced air quality management initiative titled "Know Before the Community, Act Before Impact" to mitigate the impacts on communities and reduce complaints in the provinces of Suphan Buri, Sing Buri, Chaiyaphum, and Kalasin. This program features the development of the AIRMODEL system and the deployment of IoT sensors to monitor wind direction, wind strength, and air quality, including of 2.5 micrometers or less in diameter (PM2.5) and coarse dust particles less than 0.1 micrometers in diameter (PM100). An alert system via a LINE official account sends notifications every 12 and 24 hours, providing recommendations based on the weather forecast. Immediate warnings are issued if particulate matter levels rise rapidly or if changes in wind direction pose a threat to the community, enabling a prompt response at pollution sources.
      In addition, forecast data is used to plan activities tailored to both daily and forecasted conditions related to air pollution sources. Statistical analysis of weather data will be employed to predict wind direction changes in different months, aiding in the long-term planning of activities related to air pollution sources. This system will replace the previous dust measurement system in factories and communities, addressing limitations in accuracy, historical data retention, and predictive analysis.
    • Prevention and Control of Pollution at Its Source
      • Control of the production process aims to reduce air pollution by controlling fuel use and combustion factors to optimize steam boilers' efficiency. This measure will help achieve optimum combustion, reducing carbon monoxide (CO), nitrogen dioxide (NO2), sulfur dioxide (SO2), and total suspended particulate matter (TSP) during the combustion of biomass plant fuel.
      • Control dust from bagasse and sugarcane leaf piles. 
      • Control dust in the woodchip stockyard by sprinkling water around the woodchip piles and constructing earth walls and tree windbreaks to contain dust. 
      • Install an air pollution control system to capture ash from biomass power plants using wet scrubbers and electrostatic precipitators.
      • Enhance the efficiency of air pollution control systems for coarse dust by installing a multi-cyclone system and improving electrostatic precipitators at Mitr Phol Bio-Power (Kalasin), which is expected to be completed in 2024.
      • Install an air pollution control system to control dust in wood substitute production by installing the multi-cyclone system and wet electrostatic precipitators. A dust suction system will collect dust generated during the production process within the plant, and vacuum trucks will gather dust in the woodchip stockyard for use as fuel in the production process.
      • Control dust from sugarcane transport during the sugarcane milling season. Use water trucks to sprinkle water on roads in the mills and surrounding communities.
      • Reduce dust accumulation by regularly cleaning the roofs, buildings, and fuel conveyor systems.
    • Air Quality Index Standard
      • Monitor stack emissions at the emission points to ensure compliance with legal standards and adherence to the Environmental Impact Assessment (EIA) report. Emissions are also evaluated using the Ringelmann Smoke Chart.  
      • There is a plan to install a continuous emission monitoring system (CEMS) at biomass power plant stacks to continuously monitor the concentration of emitted pollutants. This system will help indicate the efficiency of the combustion furnace, ensuring complete combustion. The installation is expected to be completed by 2025.

    Industrial Waste Management

    With the concept of “From Waste to Value Creation,” Mitr Phol aims to develop businesses from recycled materials. Waste from one business can be used to create value for another related one. For instance, agricultural waste, such as bagasse, is converted into biomass-fueled electricity. Molasses is converted into ethanol for use in gasohol and jet biofuel. Filter sludge and distillation effluent are used to make fertilizer and develop bio-based products to replace petroleum-based products. This approach helps reduce waste, minimize negative impacts on the value chain, and create new business opportunities for the organization.

    Mitr Phol has developed its waste management strategy based on the waste hierarchy concept, which includes avoidance/reduction of waste generation, reuse, recycling, and recovery. For example, converting waste into energy reduces the amount of waste that goes to landfills or incineration. The Company also develops waste management standards that align with international practices and regulations, to ensure the highest efficiency.

    Mitr Phol is currently conducting a systematic study of waste, or waste profiling, in Mitr Phol Dan Chang Complex. The profiling includes the type, quantity, location of waste generation, and management of each waste type generated during the production process, all in compliance with environmental management standards. This dataset will be helpful in the future development of Mitr Phol's waste management activities. The Company plans to transform Mitr Phol Dan Chang Complex into a closed-loop recycling model, collaborating with other organizations to include partners in its value chain and maximize waste recovery to reduce waste sent to landfills. Mitr Phol hopes to expand this model to other factories in the future.

    In 2023, Mitr Phol implemented the following projects to add value to the waste generated in its production process:

    • The project "Elephant Super Soil" soil aims to improve soil made from filter cake, sugarcane leaves, sugarcane mulch, bagasse ash, and old sugarcane leaves. Department of Agriculture has already approved the product for agricultural use. There is a plan to develop this product for use in larger areas.
    • Research and development projects to add value to bagasse ash from the biomass power plants under Mitr Phol Innovation and Research Center:
      1. A development project for fertilizer fillers with similar properties to those used by Mitr Phol fertilizer factories
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      2. A research and development project on using bagasse ash in the cement manufacturing industry and developing an ash compound separator for efficient ash handling. Separated bagasse ash can be used in other industries, such as the cement manufacturing industry, or as raw materials for companies in Mitr Phol.
      3. A project to produce briquettes or sticks from bagasse to be used as supplementary fuel in power plants and fertilizer factories.
      4. A study on bagasse ash and lime sludge blends for decorative brick production employing geopolymer technology, in collaboration with the National Metals and Materials Technology Center (MTEC). The project aims to develop five formulas based on ash from Mitr Phol power plants to increase brick quality and strength, with completion targeted in 2024.

    Designing training program on Environmental management,
    Occupational health, and safety

    Mitr Phol’s Department of Safety, Occupational Health, and Environment and HR departments of all factories jointly designed training programs to educate employees working in the safety, occupational health, and environment departments of all factories. In 2023, the Company designed and administered a test for operators, officers, and supervisors for the first time. The test is structured around 2 areas:

    1. Environmental management, covering environmental laws, environmental management systems, environmental responsibility to the community, and environmental engineering and technology, and waste reduction training. 
    2. Safety and occupational health, covering safety and occupational health laws, safety and occupational health management systems, occupational health, safety engineering and technology, and fire protection engineering and technology.


    The Department of Safety, Occupational Health, and Environment at Mitr Phol, along with the HR departments of all factories, will use the test results as a guide to design training programs for 2024 tailored to employees' proficiency levels. Factory managers will use this data to facilitate skill development among their staff as they carry out their job responsibilities. The aim is for employees to apply their work experience and knowledge gained from training to solve problems and improve operational procedures, which will benefit both the employees and the organization.

    Related Policy and Statements

    Security, Safety, Occupational Health, and Environment Policy

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