Water Management

Efficient water resource management represents an important opportunity for Osotspa to strengthen resource security, reduce operating costs, and enhance production process efficiency. The application of water-efficient technologies and innovations, water reuse, and water management across the value chain helps reduce long-term water scarcity risks, while building stakeholder confidence and supporting the Company’s environmental and sustainability goals in line with international expectations.

However, water resource management also faces challenges from climate variability and water scarcity risks in certain areas, the need for continuous investment in infrastructure, technology, and water-use monitoring systems, as well as collaboration with suppliers and communities within the same watershed. In addition, the collection of water-use data and information on impacts on water resources in a complete manner and in alignment with international standards requires ongoing system development and continuous participation from all relevant parties.

Osotspa places importance on sustainable water resource management, as water is a key raw material for beverage production and an important resource for the well-being of surrounding communities. The Company continuously conducts site-specific water-related risk assessments, with particular focus on plants located in water-stressed areas, to define appropriate management measures, reduce risks to business operations, and minimize impacts on stakeholders.

The Company aims to improve water-use efficiency throughout the production process through technology improvement, water reuse, and water recycling, in order to reduce dependence on natural water sources. At the same time, Osotspa engages with communities and stakeholders within the same watershed to promote the shared, responsible, and sustainable use of water resources.

For wastewater management, Osotspa operates effective wastewater treatment systems. Wastewater from production processes is treated to meet required standards before being discharged into public water sources or transferred to the central wastewater treatment system of industrial estates. The Company also strictly monitors, tracks, and reports wastewater quantity and quality in accordance with applicable laws and requirements. In addition, Osotspa continuously applies technology and innovation to improve its water management systems and strengthen long-term water risk management.

Osotspa is committed to enhancing the efficiency of water resource management through a systematic process for auditing and assessing water-use potential within its operating sites. This process helps identify opportunities to improve and optimize water use at every stage of the production process. In 2025, the Company used the analysis results from these assessments to further implement water conservation projects under the 4Rs approach, comprising Reduce, Reuse, Recycle, and Replace. In addition, all water management data and water-use statistics of the Company have been verified by an external party in accordance with international standards. This confirms the accuracy and transparency of the data and reflects the Company’s achievement in managing water resources efficiently and sustainably.

Water Consumption Performance

Water	Unit	2022	2023	2024	2025	2025 Target
A. Water withdrawal (excluding saltwater)	Million cubic meters	2.92	2.56	2.46	1.95	1.50
B. Water discharge (excluding saltwater)	Million cubic meters	0.41	0.55	0.85	0.89
Total net fresh water consumption (A-B)	Million cubic meters	2.51	2.01	1.61	1.06
Coverage	percentage	100	100	100	100	100

Water Consumption in Water-Stressed Areas Performance

Water	Unit	2022	2023	2024	2025	2025 Target
Water consumption in areas with water stress	Million cubic meters	2.33	1.84	1.48	1.05	1.30
Total net fresh water consumption (A-B)	percentage	100	100	100	100	1.30

Corporate Water Management and Water Risk Mitigation Plan

4Rs Management Approach	Implementation of Water Conservation Projects in 2025	Production Plants
Reducing Water	Reduce new steam consumption by returning condensate water to the boiler through a Plate Heat Exchanger, reducing new water consumption by 70%.	Beverage Production Plant, Hua Mak
	Reduce the cleaning frequency of the Ultra Filter and Carbon Filter in the water production process, helping reduce water consumption and cleaning cycles while maintaining the same production standards.	Beverage Production Plant, Hua Mak
	Reduce water drainage from the Post Pasteurizer while maintaining normal equipment performance.	Beverage Production Plant, Hua Mak
	Reduce system flushing time on non-production days from 30 minutes to 15 minutes, together with plant patrols, resulting in reduced water consumption without affecting production.	Beverage Production Plant, Min Buri
	Reduce the need to clean the Mixer tank at the end of the working day by keeping the bulk product in the tank and continuing production with the same formula on the following day, helping reduce water consumption from tank cleaning.	Personal Care Manufacturing Plant, Lat Krabang
	Continue filling the same perfume formula without daily machine cleaning, reducing water consumption from equipment cleaning.	Personal Care Manufacturing Plant, Lat Krabang
	Reduce water pressure to control the flow rate, resulting in lower water consumption over the same water usage duration.	Glass Bottle Production Plant, Ayutthaya
	Reduce the volume and frequency of cleaning across all areas of the production line without affecting GHPs, helping reduce unnecessary water consumption.	Beverage Production Plant, Ayutthaya
	Reduce the use of RO water in steam production for the Biomass Boiler.	Beverage Production Plant, Ayutthaya
	Reduce the use of raw water in the Wet Scrubber system and floor cleaning activities in the Boiler building area.	Beverage Production Plant, Ayutthaya
	Reduce the use of RO water in steam production for the Waste Heat Boiler.	Beverage Production Plant, Ayutthaya
	Reduce the use of raw water in the flushing system of the canteen restrooms.	Beverage Production Plant, Ayutthaya
	Filter used hot water from the rinser to ensure cleanliness and reuse it, reducing the use of new water in the bottle rinsing process.	Beverage Production Plant, Ayutthaya
	Reduce the use of conveyor lubrication water.	Beverage Production Plant, Ayutthaya
Reusing Water	Change the CO₂ system cooling water from soft water to reused water, helping reduce the use of new water in the production process.	Beverage Production Plant, Hua Mak
	Expand the use of reused water from the previous level of 60 m³/day to 100 m³/day and subsequently to 120 m³/day.	Beverage Production Plant, Ayutthaya
	Reuse treated wastewater specifically for the flushing process at the Liquid Plant.	Personal Care Manufacturing Plant, Lat Krabang
Recycling Water	Reduce condensate discharge by returning as much condensate water as possible to the system, reducing the use of RO water as boiler make-up water.	Beverage Production Plant, Ayutthaya
Recycling Water	Filter used hot water from the Rinser to ensure cleanliness and reuse it, reducing the use of new water in the bottle rinsing process.	Beverage Production Plant, Ayutthaya
Replacing Water	Use water from the Cooling Tower to partially replace water in the Chiller system, reducing the Chiller workload and helping save energy.	Beverage Production Plant, Ayutthaya
Replacing Water	Adjust the Final Jet system by using water from Zone 5, which has a suitable temperature, for mixing instead of using new water. Previously, new water had to be added and then discharged. This improvement helps reduce new water consumption for temperature reduction in Rinser Zones 1-2.	Beverage Production Plant, Hua Mak

Water Risk and Water Stress Assessment

The Company places importance on efficient and sustainable water resource management and continuously conducts water risk assessments across all operating sites. Osotspa applies the internationally recognized Aqueduct tool developed by the World Resources Institute (WRI) to analyze the Water Stress Index, together with systematic assessments of the quantity, adequacy, and quality of water sources in each area. Although the overall assessment results for the Company’s operations in Thailand indicate low to moderate risk levels, Osotspa continues to take a proactive approach to appropriately manage water-related risks.

In 2025, the Company enhanced the scope of its water risk assessment to include a more detailed context-based assessment, with particular focus on strategic manufacturing areas in Phra Nakhon Si Ayutthaya Province. The assessment covers physical characteristics, trends in the adequacy and quality of source water, as well as relevant local regulations and requirements. The results are used to design appropriate mitigation measures to reduce potential impacts on business operations and strengthen confidence among all stakeholder groups.

In addition, to enhance water resource management across the value chain, the Company expanded the scope of water risk assessment to downstream activities, including the product use phase. This was first implemented for beverage products, focusing on the significance of water use related to consumer behavior, such as cleaning packaging before sorting for recycling, as well as communication to raise consumer awareness of responsible water use. This reflects the Company’s commitment to conducting business with environmental responsibility beyond its own production processes and to creating sustainable shared value for society as a whole. Further details on the assessment results and water risk management measures are provided in the following section.

The results of the water risk assessment using the WRI Aqueduct tool are as follows:

Operation Sites	Types of Assets	Number of Sites	Water Stress Level (assessed using Aqueduct)
Osotspa PLC.	Offices / Manufacturing Plants	2	Extremely High (>80%)
Osotspa PLC.	Warehouse / Manufacturing Plants	4	Extremely High (>80%)
Osotspa PLC.	Manufacturing Plants	1	Extremely High (>80%)
Siam Glass Ayutthaya Co. Ltd.	Manufacturing Plants	1	Extremely High (>80%)
Siam Cullet Co. Ltd.	Manufacturing Plants	1	Extremely High (>80%)
Greensville Co. Ltd.	Manufacturing Plants	2	Extremely High (>80%)
Advanz Beverage Manufacturing Co. Ltd.	Manufacturing Plants	1	Medium to High (20-40%)

Proportion of Osotspa’s Operations Located in Water-Stressed Areas:

Total Number of Manufacturing Plants	12
Number of Manufacturing Plants Located in Areas with Extremely High Water Stress (Extremely High >80%)	11
Percentage of Manufacturing Plants Located in Areas with Extremely High Water Stress (Extremely High >80%) (calculated based on the number of manufacturing plants)	91.67%
Percentage of Manufacturing Plants Located in Water-stressed Areas (calculated based on cost of goods sold (COGS))*	58.62%

*Note: The percentage of manufacturing plants located in water-stressed areas is 91.67%, calculated based on 11 out of 12 manufacturing plants. This figure is used as a proxy for the Cost of Goods Sold (COGS) share, as the manufacturing plants in Thailand represent the Company’s main production base and have a significant contribution to the Company’s total cost of goods sold.

Exposure of Suppliers to Water Risks

Raw Material	Sourcing Province	Water source	Water Risk Level
Sugar	Nakhon Sawan	Chao Phraya	Extremely High (>80%)
	Uttaradit	Chao Phraya	High (40-80%)
	Kamphaeng Phet	Chao Phraya	High (40-80%)
	Chaiyaphum	Mekong	Extremely High (>80%)
	Kalasin	Mekong	High (40-80%)
	Loei	Mekong	Low (<10%)
Agricultural commodities	% of total agricultural commodity sourced from areas with water stress
Sugar	100
% of cost goods purchased in last FY	2.27

Supply Chain Water Risk Management

Osotspa recognizes that water-related risks in its supply chain may affect supplier operations, business continuity, and the availability of key raw materials. The Company therefore identifies and manages water-related risks among critical Tier 1 suppliers, particularly those located in water-stressed areas. Key water-related risks considered include the following:

1. Risks related to the quantity and quality of water

Water availability and quality can influence the operational continuity of suppliers and the reliability of raw material supplies. In water-stressed areas, suppliers may face increased exposure to water scarcity, seasonal fluctuations, competing water demands, and changes in water quality. Osotspa therefore collaborates with critical Tier 1 suppliers in water-stressed areas to identify potential impacts and promote appropriate water risk mitigation measures, including improving water-use efficiency, reducing water dependency, increasing water reuse and recycling, and monitoring water availability and quality. These measures help strengthen supplier resilience and minimize potential disruptions to Osotspa’s supply chain.

2. Risks related to regulatory changes or changes in pricing structures

Changes in water-related laws, regulations, permitting requirements, or water pricing structures may affect suppliers’ operating costs, water availability, and production continuity. Such changes may also have implications for the cost and reliability of raw materials supplied to Osotspa, particularly among critical Tier 1 suppliers located in water-stressed areas.

Osotspa monitors changes in relevant laws and regulations through its Legal function, which regularly tracks and communicates new and amended regulatory requirements to relevant functions. The Company collaborates with critical Tier 1 suppliers to identify potential impacts of regulatory and water pricing changes and encourages compliance with applicable requirements, improved water-use efficiency, and reduced dependency on freshwater. Potential regulatory and cost changes are considered in water risk management and business continuity planning to strengthen supply chain resilience and minimize potential disruptions.

3. Risks related to stakeholder conflicts

Competition for water resources among local communities, agricultural users, businesses, and other stakeholders may create conflicts, particularly in water-stressed areas. Such conflicts may affect suppliers’ access to sufficient water, operational continuity, and the reliability of raw material supplies to Osotspa.

Osotspa collaborates with critical Tier 1 suppliers located in water-stressed areas to identify potential stakeholder-related water risks and promote responsible water management. Suppliers are encouraged to engage with relevant stakeholders, understand local water-related concerns, and implement appropriate measures to manage competing demands for water resources. These practices help minimize potential conflicts, support responsible and equitable water resource use, and strengthen the resilience and continuity of Osotspa’s supply chain.

Osotspa places importance on water risk management across the supply chain, with a focus on Tier 1 suppliers that play a critical role in the continuity of raw material sourcing. The Company systematically conducts location-based water risk assessments within its supply chain by using internationally recognized tools, such as WRI’s Aqueduct, to identify areas that are vulnerable to water-related risks. Based on the assessment results, the Company strengthens suppliers’ capabilities through knowledge sharing and training to enable them to manage water-related risks that may affect their operations. The key topics covered include:

Quantity and quality of water resources

Risks arising from insufficient water availability and deterioration of water source quality, which may result from climate variability, shared water use with other sectors in the area, and water pollution. These factors may affect suppliers’ operational capability, continuity of raw material supply, and product quality.

Changes in laws, regulations, requirements, or pricing structures related to water use

Risks arising from the revision or enforcement of laws, policies, and requirements related to water use and wastewater discharge, as well as changes in water pricing structures or related fees. These may affect operating costs, compliance capability, and suppliers’ long-term business planning.

Conflicts with local stakeholders

Risks arising from shared water use with communities, the agricultural sector, government agencies, or other water users in the same area. Such risks may lead to complaints, social opposition, or restrictions on water use, which could affect community relations, stakeholder confidence, and supply chain continuity.

The Company has identified significant agricultural raw materials for its business operations, including sugar, which is sourced from domestic farmers and accounted for 9% of total raw material procurement value in 2025, based on Cost of Goods Purchased or Acquired (COGA). The main sourcing areas are located in Khon Kaen, Chaiyaphum, Suphan Buri, Kamphaeng Phet, and Ang Thong, which are classified as areas with Extremely High Water Stress (>80%).

Water Conservation Projects and Activities

Wastewater Management of Rojana Garden Home L Phase Project

Osotspa implemented an integrated science project related to the environment and community in collaboration with lecturers and students from the Bachelor of Science Program in Biotechnology, International Program, Faculty of Science, Chulalongkorn University. The team conducted field visits to survey and listen to community concerns, collected water samples from various locations for analysis, and used the results to develop support approaches and wastewater treatment plans.

Training Program on Efficient Water Use

Osotspa places importance on strengthening employees’ knowledge and skills in efficient water use through annual training and awareness-building activities. The program covers both water use in production processes and daily water use within the organization. It focuses on sharing appropriate practices, reducing water loss, and promoting responsible water use. This supports sustainable water resource management, reduces environmental impacts, and fosters a long-term organizational culture that values efficient resource use.

Water Management