Resource Efficiency
Recognizing the environmental and economic consequences of inefficient resource usage, Central Retail leverages the circular economy to reduce resource consumption, recycle efficiently, and maximize benefits from alternative means of waste disposal. This commitment extends to energy and water management, packaging management, and waste management covering food loss and waste. Aligned with the ReNEW Strategy, Central Retail has set ambitious goals of achieving 100% adoption of eco-friendly packaging, 30% waste diversion, and 30% reduction in food loss and waste by 2030, further solidifying its dedication to resource efficiency.
Central Retail must have efficient management of resources to ensure an absolute decrease in the amount of resource use despite business growth and expansion into new categories, formats and locations. This can be a huge challenge if Central Retail only relies on managing resources and wastes downstream. Therefore, Central Retail must integrate circular economy concepts into the management of resources and waste throughout the value chain by reducing or replacing non-recyclable materials with those that are eco-friendly or recyclable. Not only will resource efficiency lessen environmental impact from business operations, but also reduce the risk of complaints or reputational damage due to inefficient and wasteful resource uses. Resource efficiency also helps cut expenses and provides economic opportunities for Central Retail through value-added products.
Target
Impact to Business, Stakeholders, and Human Rights
Effective resource management benefits both Central Retail and its stakeholders. By implementing resource-efficient practices, Central Retail can achieve cost savings through lower energy and water consumption, and less waste generation. This leads to improved operational efficiency and profitability, while adhering to regulations fosters positive relationships with government agencies. Furthermore, communities and societies experience reduced environmental pollution and improved public health due to responsible waste management. Investors and shareholders gain confidence from Central Retail’s responsible practices, leading to positive reputation, and potentially more access to sustainable finance. Suppliers and communities benefit from collaboration in promoting resource efficiency throughout the value chain and new business opportunities through value-added eco-friendly products. Certain groups of customers and employees are attracted to a responsible organization.
In contrast, poor resource management leads to Central Retail facing increased operational costs. Customers may lose trust and loyalty, while investors and shareholders might lose confidence. Communities and governments face increased environmental pollution and potential health risks, leading to complaints and strained relationships.
Management Approach
Environmental Governance
To ensure an effective environmental management system that complies to the laws, regulations, and international standards, Central Retail has established a governance structure that includes the Corporate Governance and Sustainable Development (CGSD) Committee, Presidents of each business unit, and the Environmental Working Team.
With resource efficiency being a significant topic covered by an environmental management system, the CGSD Committee, with the Chief Executive Officer (CEO) being an executive director who is a member of the CGSD Committee and Board of Directors, is responsible for setting strategic direction in achieving the resource efficiency commitments set out in the ReNEW Strategy. At the executive level, Presidents of each business unit are responsible for overseeing an environmental management system and practices in each of the business units, and report to the CEO on a regular basis. Last but not least, the Environmental Working Team is responsible for monitoring performance throughout Central Retail and providing support to business units to implement initiatives aimed at increasing resource efficiency. The Environmental Working Team reports to the CGSD Committee and the CEO on a regular basis.
In this regard, Central Retail has also established the Environmental Policy applying to all subsidiaries under Central Retail and covering resource efficiency and other environmental topics such as climate change and biodiversity. Central Retail has also developed the 1) Food Loss and Waste Reduction Guidelines, 2) Solid Waste Segregation Guidelines, and 3) Plastic and Packaging Reduction Guidelines to serve as handbooks for employees to incorporate resource efficiency into their day-to-day business operations.
Central Retail is committed to become Thailand’s first ‘Green and Sustainable Retail’ through the ReNEW Strategy and has set clear sustainability goals to ensure that its value chain contributes to a more responsible retailing.Central Retail’s main action plan in 2023 is to organize environmental training for employees to raise environmental awareness, and to create better understanding about the impacts of their business operations on the environment. The training programs consisted of 6 modules that heavily focus on resource efficiency as well as climate change, and responsible sourcing topics. Additionally, Central Retail actively fosters collaboration among employees, suppliers, and customers to raise awareness and encourage collective efforts to promote resource efficiency through the value chain.
Resource Efficiency Hierarchy
Central Retail implements a structured resource efficiency hierarchy that is grounded in circular economy principles consisting of prevention, reduction, reuse, recycling, upcycling, and disposal. The resource efficiency hierarchy is applied throughout all business operations and at every stage of the value chain to maximize efficiency in energy and water management, packaging management, and waste management covering food loss and wastes.
Environmental Training Program
Energy and Water Management
Central Retail tracks data on energy and water consumption within business operations, analyzes those data to identify relevant functions of key activities that have high or inefficient energy and water consumption. With this, Central Retail can implement conservation or efficiency-improvement programs that can create the most significant reductions in energy and water consumption.
For energy management, Central Retail has invested in generating renewable energy to avoid non-renewable energy consumption while also installing energy-saving technology and upgrading in new and existing assets. Central Retail has joined the RE100 Thailand Club as a founding committee aiming to drive 100% renewable energy consumption. For more information on energy management, please refer to ‘Climate Change’ section in Sustainability Report.
For water management, Central Retail commits to reduce water consumption and improve water efficiency by identifying water stress areas to prioritize its water conservation efforts through reusing and recycling of treated discharge water from business operations. In addition, appropriate mitigation measures are established to mitigate the water scarcity-related risks in water stress areas for both itself and surrounding communities.
Packaging Management
Packaging being a significant resource used in retailing, Central Retail puts in place programs to manage packaging throughout the value chain following the Plastic and Packaging Reduction Guidelines. The main objectives of packaging management are to phase out non-recyclable packaging and increase the adoption of eco-friendly packaging solutions. Packaging management programs include:
- Phase out single-use plastic packaging through the ‘Say No to Plastic Bags’
- Increase the use of reusable packaging through the ‘Bring Your Own Bag’
- Increase the use of recycled-material and recyclable packaging through the ‘Bag for Life’
- Research and development in sustainable packaging solution
- Program to ensure that recyclable packaging is actually recycled through partnerships with external organizations, to create upcycled products
Waste Management
After the prevention, reduction, and reuse of packaging and resources at the upstream and own operations, Central Retail now focuses on managing wastes and food wastes at the downstream following the Waste Segregation Guidelines and Food Loss and Waste Reduction Guidelines. Central Retail provides training and raises awareness of waste segregation to employees and customers, as well as establishing various waste segregation stations throughout the department stores. This allows Central Retail to sort waste into different types that can be appropriately diverted from disposal to be recycled or upcycle for optimal benefits.
After segregation, Central Retail keeps record of waste generation to monitor progress against target. The tracking system utilized digital technology to automatically collect data to be periodically reviewed by Central Retail. Central Retail breakdown food loss and wastes data into different categories including bakery, deli, fresh meat, fresh packaged food, fresh seafood, produce and snack. Accurately quantifying and categorizing food loss and wastes enables Central Retail to gain feedback for prevention in the upstream from adjusting food inventory and storage to be in line with actual demand.
To reduce food loss and wastes in the downstream, Central Retail implements food rescue programs through partnerships with the Yindii platform to sell surplus food at discounted prices to customers, curated still-edible food surplus into ‘Surprise Bags’ that are sold at affordable prices in Tops Supermarket and Tops Daily, and with the Scholars of Sustenance (SOS) Thailand organization to donate surplus food to vulnerable groups. Moreover, Central Retail also collaborates with Jaikla start-up company to recycle food wastes into feed for insects, which are then processed to be sold as insect-based protein pet treats. In other cases, Central Retail partners with local communities through the ‘Samui Zero Waste Model’ to recycle food waste as animal feed or fertilizer.
Journey to Zero: Food Loss & Food Waste Management
Project Highlights
Recycling and Upcycling Programs by Hardline Business Category
Central Retail implements various recycling and upcycling programs with the objective of ensuring that recyclable packaging is actually recycled. Central Retail collects used plastic bottles from designated collection points in Power Buy and Officemate, two subsidiaries under the hardline business category, and delivered to the Chak Daeng Buddhist Temple to be processed into fibers that are then woven into robes for monks. In 2023, a total of 20,009 plastic bottles were upcycled into 333 robes. Power Buy has also partnered with Advance Info Service (AIS) PCL, one of Thailand’s largest mobile network providers, to establish 40 electronic waste drop-off points nationwide to be properly recycled and disposed, adhering to international standards.
Partnership with Jaikla: Turning Food Wastes into Pet Treats
Driven by the objective to utilize food loss and waste for alternative uses, Central Retail partners with Jaikla, a startup company to turn food waste into pet treats. Food wastes, such as bakery products, vegetables, and fruits that are no longer edible by humans from ten Tops Supermarkets in Bangkok are assessed for quality and hygiene before transported to Jaikla to be used as feed for insects. The insects are then processed into insect-protein pet treats that are available for sale in the Tops Supermarket, Tops Food Hall, and online channels. In 2023, the partnership of Central Retail and Jaikla reduced food wastes by 23,589 kg.
Project for Enhancing Water Efficiency and Recycling
Central Retail has initiated a project to enhance water efficiency and recycle water through various operations within Robinson Lifestyle and Central Department Store. These initiatives include adjusting the water flow rates of sanitary fixtures to optimal levels, installing rainwater storage tanks for water reserves, recycling water from cooling towers and air conditioning systems, and using treated wastewater to irrigate plants. Through these measures, we have successfully reduced water usage by over 17,000 liters per month.
