Stakeholders Engagement and Value Chain

Osotspa’s Value Chain

Osotspa operates primarily in the beverage industry, with three core business segments: (1) beverages, (2) personal care products, and (3) health and confectionery products. The Company’s non-core businesses include original equipment manufacturing (OEM) services for products and packaging. Given the diversity of its operations, the Company recognizes the importance of effective value chain management in advancing sustainability across its business and creating long-term value for stakeholders.

	Upstream	Operations				Downstream
Activities	Sourcing Source raw materials for manufacturing Import finished goods for distribution Transport raw materials to factories and deliver finished goods to warehouse	Production Manufacture branded products and OEM products Research, develop and improve products to meet market needs and reduce costs Develop sustainable packaging	Distribution Store raw materials and finished goods in warehouses, and manage inventory Transport goods between factories, warehouses, and distribution centers	Marketing and Sales Marketing and sales promotion activities Market and consumer research using technology and data analytics across online and offline channels	Packaging Management Sustainable packaging management through reuse and recycling	Waste Management Waste management from manufacturing processes and business operations
Impacts and Affected Stakeholders	Sustainable supplier sourcing and management helps reduce pollution, lower resource use, and promote fair labor practices in line with human rights. If the focus is only on cost without proper oversight, it can increase risks in product quality, human rights violations, and supply chain delays	If not well controlled, manufacturing, innovation, and R&D can increase pollution, waste, product recalls, fines, and disruptions—affecting revenue and customer trust. Using unsustainable raw materials can create indirect ESG risks such as deforestation, excessive resource use, and labor issues, undermining the rights to decent work and health	Effective warehouse and logistics management helps reduce waste, avoid unnecessary resource use, and cut emissions from transportation. Optimizing inventory levels and delivery routes helps control costs, reduce the risk of stockouts or overstock, and improve operational efficiency. It also helps reduce accidents and health impacts, supporting the rights to life and safe working conditions	Non-transparent or exaggerated marketing communications can damage corporate reputation and increase legal and regulatory risks. In addition, if robust processes and appropriate technology are not in place to protect personal and confidential data, data breaches may occur—leading to reputational harm and further legal exposures	Packaging that is excessive or not recyclable increases plastic pollution and the overall environmental footprint, negatively affecting health and natural resources. A lack of sustainable packaging practices can also raise costs and increase exposure to regulatory non-compliance and fines. Therefore, designing sustainable packaging helps mitigate risks and supports safe working conditions	Ineffective waste management increases the risk of pollution, legal non-compliance, and negative impacts on the environment and public health. From a business perspective, it can lead to fines, higher disposal costs, and missed opportunities to reduce costs through recycling or waste-to-value solutions. This issue is also linked to the rights to health and to the sustainable use of natural resources
Impacts and Affected Stakeholders	Suppliers, Communities	Employees, Communities, Regulators	Employees, Suppliers, Communities	Customers, Regulators, Shareholders	Customers, Suppliers, Communities	Employees, Communities, Regulators
Value Creation	Sustainable Supply Chain, Energy and Climate Management	Water Management, Product Quality and Safety, Product Innovation	Energy and Climate Management, Sustainable Supply Chain	Responsible Communication and Product Labelling, Consumer Health and Well-being	Sustainable Packaging	Waste Management
Value Creation	Corporate Governance and Risk Management, Human Capital Development and Labor Practices, Human Rights, Community Relations and Contributions

Stakeholder Engagement

Osotspa recognizes stakeholder engagement as an important process for understanding stakeholders’ feedback, expectations, positive perspectives, and concerns through a variety of engagement activities and communication channels. The Company consolidates key issues raised by stakeholders and assesses them in collaboration with representatives from relevant functions to identify opportunities to improve its operations and respond appropriately to the views and expectations of each stakeholder group.

The Company has identified six stakeholder groups: (1) customers and consumers, (2) business partners, (3) regulators and government authorities, (4) shareholders, investors, and creditors, (5) employees, and (6) local communities. Stakeholders are identified by considering individuals and organizations that are directly or indirectly affected, either positively or negatively, by the Company’s business operations.