BJC Materiality Topics and Boundaries
In 2023, BJC reviewed its materiality topics to comply with the requirements of the GRI Standards. This review aimed to reconfirm that the materiality topics prioritized by BJC align with the interests of relevant internal and external stakeholders. Doing so reaffirms BJC's ability to identify the actual and potential, negative, and positive impacts on the economy, environment, and people, including human rights impacts, across its activities and business relationships. Additionally, BJC can identify, develop, and implement effective initiatives that positively contribute to the development of the economy, societies, and the environment while minimizing human rights violations and other negative implications.
Materiality topics are identified through an extensive assessment process that considers the views, opinions, and inputs from both relevant internal and external stakeholders, assessing sustainability issues pertinent to the Food and Staple Retailing sector. Topics are consolidated by benchmarking against global and social trends, industry peers, and accepted national and international standards, including those from the World Economic Forum, S&P Global, UN Global Compact (Ten Principles), SASB, and industry peers. Furthermore, BJC evaluates the significance of these topics by assessing their severity and impact on organizational operations, including financial impacts and corporate reputation.
In 2023, the materiality assessment was conducted in accordance with the updated GRI Standards, which considered the views and opinions of external stakeholders. This was achieved through primary research, including questionnaires, interviews, and engagements with relevant stakeholders, as well as secondary research through desktop research for internal stakeholders and credible research articles, resulting in a more comprehensive assessment process. Additionally, in 2023, BJC engaged with a professor from Mahidol University as a sustainability expert and an ex-president of the Health Care Supply Chain at BJC as an industry expert to gain further insights.
The annual reassessment of materiality topics in 2023 found that the topics BJC considers material to its operations align with those of its stakeholders, representing their interests and expectations. These materiality topics are then presented to relevant internal stakeholders, including top management and executive members, for endorsement prior to publication in the annual sustainability report.
Materiality Consolidation Process
1. Identification
BJC identifies relevant material issues through the assessment of internal processes such as the quarterly Enterprise Risk Management (ERM) process and external influences such as global trends, business strategies, risks and opportunities impacts on business, business direction of sustainability, relevant national and international standard requirements and relevant BJC stakeholder interests. BJC also considers the material issues from previous years.
Outcome: BJC's Topic Universe (Material Topics)
2. Prioritization
BJC prioritize reporting on material topics that represent the most significant impacts on the economy, environment, and social, including impacts on their human rights. Material issues are prioritized using a materiality matrix. This process is achieved by ongoing identification and assessment of impacts, which involves engaging with relevant internal stakeholders through the quarterly Enterprise Risk Management (ERM) process and external stakeholders and experts, utilizing the double materiality principles to attain a more insightful assessment.
Outcome: BJC's Materiality List
3. Validation
Materiality topics are then presented to the Sustainable Development Committee, who is appointed by the Board of Directors (BOD) to be accountable for reviewing, evaluating, and validating (signoff) the results of the materiality assessment, and approves the information for public disclosure. Additionally, the materiality assessment process is verified by a third-party assurance provider to assess that the process is conducted accurately.
Outcome: Validated BJC's Material Topic & Materiality List
Stakeholder Engagement Categorization
BJC treasures input and opinions from all relevant stakeholders, integrating feedback into new strategic developments and striving to continuously engage with all stakeholders. To accomplish this, the Sustainable Development working group, along with representatives from each business unit, identifies relevant stakeholders throughout the value chain. Each group is prioritized based on their dependency and influence on BJC, and appropriate channels and frequencies of engagement are identified accordingly. The categorization and engagement process is then reported to the Sustainable Development Committee for approval.
This stakeholder engagement provides BJC with a better understanding of each group's requirements and expectations, leading to the development of clear and comprehensive commitments, policies, strategies, and projects to meet these expectations. BJC engages each stakeholder group differently through various online and offline channels as follows.
BJC Stakeholders
Stakeholder Engagements Approach
BJC Materiality Topic 2023
Changes to the Materiality Matrix in 2023
The 2023 materiality topics consists a total of 8 materiality topics, in comparison to the 10 in 2022. This change remains to follow the approach the World Business Council for Sustainable Development (WBCSD), recommended, encouraging companies to identify between 7 to 12 total materiality topics, to develop a more focused Sustainability Report. For 2023, changes to the materiality topics includes:
- Economic/Governance Dimension
- The topic of ‘Risk Management & Compliance’ will no longer be disclosed within the SR, as it is a business-as-usual process, which is conducted regularly, with no significant changes.
- The topic of ‘Supply Chain Management’ has been changed to ‘Responsible Supply Chain Management’, to be more inclusive of all supply chain management controls, including sustainable agriculture practices.
- The topic of ‘Data & Cybersecurity Privacy Protection’ has been updated to ‘Data and Cyber Security and Privacy Protection’, which will be inclusive of all data and cybersecurity initiatives and commitments.
- The topic of ‘Technology & Innovation’ will no longer be a separate chapter, but initiatives will be integrated into each relevant chapters with technology & innovation.
- Environmental Dimension
- The topic of ‘Climate Strategy’ has been updated to ‘Climate Strategy and Energy Management’ which will disclose all climate change and energy management commitments, projects, and progress.
- The topics of ‘Water Management’, ‘Waste Management’, including Food waste management and Biodiversity will be disclosed under a centralized topic of ‘Environmental Management’, encompassing all management of natural resources and its impacts on surrounding ecosystems and biodiversity’s.
- Social Dimension
- The topic of ‘Employee Management’ will remain focused about labor practice, wages, employee development, talent attraction & retention and occupational health and safety.
Materiality Issues for Enterprise Value Creation
1) Supply Chain Management
Supply chain management is critical to BJC’s business. BJC’s value chain spans from upstream to downstream, encompassing diverse businesses. The company sources raw materials both locally and internationally, making climate change a significant factor impacting BJC’s supply chain. A seamless supply chain enables BJC to deliver goods and services efficiently, meeting daily customer needs and driving long-term value creation.
Navigating evolving customer demands requires BJC to adapt to market changes. Effective supply chain management ensures a variety of demanded products are sourced and consistently available, as well as a differentiation that creates competitive advantage. It also fosters sustainable relationships with stakeholders, enhancing their capabilities and improving their quality of life.
In 2023, global supply chain disruptions from geopolitical conflicts, inflation, climate change, and extreme weather have increased operating expenses and product prices. BJC's global operations must address these challenges directly and through its business partners. Thus, effective supply chain management is crucial for mitigating risks, controlling costs, and ensuring product availability and quality for BJC’s customers.
Business Strategies
BJC addresses supply chain management through several primary business strategies and initiatives. A key strategy is the implementation of a Supplier Development Program, ensuring supplier capability. BJC conducts a thorough supplier screening and assessment process, suppliers with room for improvement enter BJC’s Supplier Development Program to ensure quality and reliability.
The mission to foster sustainable supply chain is enforced through Supplier Code of Conduct, managed by the centralized Sustainability and Risk Management Department. BJC’s primary business strategy for addressing supply chain management involves conducting thorough supplier screening to identify potential suppliers with room for improvement. These selected suppliers are then enrolled in BJC's Supplier Development Program, which focuses on enhancing their capabilities. The program aims to improve product quality, safety, and sustainability, ensuring that suppliers meet high standards and contribute effectively to BJC’s supply chain. This approach not only strengthens supplier performance but also aligns with BJC's commitment to sustainability and operational excellence.
BJC develops a sustainable supply chain management approach to achieve operational efficiency. This project emphasizes the value of long-term supplier partnerships for high-quality products and services at affordable pricing. The company's Supplier Code of Conduct promotes ethical sourcing and sustainable business practices. The approach also assesses suppliers for business risk and ESG. Suppliers work with these assessments to improve capabilities and develop sustainably.
The company prioritizes consumer satisfaction by offering safe, affordable, and innovative products and services. A thorough supplier management methodology ensures ethical suppliers and excellent product quality. The company fulfills market needs while supporting sustainable business practices by selecting suppliers based on partnership opportunities, production quality, and consumer response.
The company's strategy encompasses targeted supplier development projects that improve supply chain productivity and quality. These activities minimize supplier variability concerns, especially for climate-vulnerable perishables. These projects have improved agriculture and the environment by reducing greenhouse gas emissions through innovative farming and waste management.
Due to their strategic alignment and long-term growth potential, SMEs and farmers are the Company's main suppliers. The company actively supports these partners by improving agricultural practices and product quality to meet GAP and GMP requirements. This upstream support helps suppliers fulfill the Company's strict quality standards and improves the supply chain.
In summary, the company's sustainable supply chain management strategy incorporates supplier collaboration, ethical sourcing, and continual improvement. The company improves its products, market competitiveness, environmental stewardship, and community welfare by prioritizing supplier development and sustainability standards. These initiatives demonstrate the company's commitment to responsible business and sustainable supply chain management excellence.
Target Year: 2023 (Annually, On-going)
A key metric to measure the progress in supply chain management is the number of qualified and potential suppliers, especially those SMEs and farmers with a room for improvement, participated in BJC's Supplier Development Program. The target is 100% of the suppliers participated in the program each year.
The progress is monitored systematically by measuring compliance with our Supplier Code of Conduct, conducting regular audits, and evaluating supplier performance against defined sustainability criteria. This ensures that our supply chain remains resilient, reliable, and aligned with BJC’s commitment to sustainability and stakeholder prosperity. By achieving and maintaining this annual target, we ensure our suppliers, particularly SMEs and farmers, continuously improve and adhere to the highest standards of quality and sustainability.
Progress
In 2023, 100% of qualified and potential suppliers participated in BJC's Supplier Development Program. BJC continues to identify potential suppliers, especially farmers and SMEs, and prepares development programs through a 3-year plan from 2023-2025.
For food-related suppliers, BJC engages with contracted farmers to maintain strong relationships and actively support their development. This support includes knowledge sharing and training on resource efficiency and environmental impact mitigation, aligning with standards such as GAP to minimize chemical use and environmental impact. SMEs' capabilities are improved through collaboration with Big C, focusing on elevating product quality and quantity to increase sales through Big C stores.
These initiatives ensure that BJC's supply chain remains resilient and reliable while fostering sustainable practices and improving supplier performance, aligning with BJC's commitment to sustainability and stakeholder prosperity. Through these efforts, BJC supports suppliers in continuously improving and adhering to high standards of quality and sustainability.
Executive Compensation
The compensation of BJC’s executives is directly tied to improving profits from agricultural products sold at Big C stores, benefiting both BJC and its suppliers. This performance KPI focuses on ensuring that profits from SME suppliers and farmers increase, creating a win-win situation.
By supporting suppliers through initiatives like the Supplier Development Program, BJC helps improve the quality of agricultural products, enhancing their marketability. This support enables SMEs and farmers to offer high-quality products, which in turn boosts sales and profits at Big C stores.
Higher profits from these sales benefit BJC through increased revenue and operational efficiency. At the same time, suppliers gain better income and business growth opportunities. This mutually beneficial relationship ensures that both BJC and its suppliers thrive, fostering long-term sustainability and joint success.
2) Climate Strategy and Energy Management
Climate strategy and energy management are critical for BJC due to their direct impact on energy consumption, a significant factor in operational costs and environmental footprint. This is especially pertinent for BJC's Packaging and Retail businesses, which consume substantial energy for glass melting and air conditioning & lighting, respectively. Another pressing concern is Thailand's upcoming carbon tax, slated for implementation by 2025, aimed at mitigating climate impacts and aligning with the EU’s Carbon Border Adjustment Mechanism (CBAM). As the global "Carbon Clock" ticks down with just five years to prevent temperatures from exceeding 1.5 degrees Celsius, BJC's initiatives are crucial for compliance with regulatory changes and averting irreversible climate crises.
Business Strategies
A key strategy for BJC is the "1+5" approach, which focuses on identifying, developing, and implementing projects aimed at achieving net zero goals by 2050, with a strong emphasis on energy management. BJC reduces non-renewable energy consumption and GHG emissions by identifying risks and opportunities related to energy use. A prime example is the Big C Solar Roof Project, which installs solar panels on store rooftops to generate onsite electricity, reducing dependence on the fossil fuel-dominated grid and lowering greenhouse gas emissions. Additionally, BJC uses eco-friendly equipment and integrates electric vehicles into operations to further decrease energy consumption. These combined efforts help BJC lower operational costs, minimize environmental impact, and enhance sustainability. By prioritizing these energy management strategies, BJC is committed to achieving its net zero goals by 2050 and effectively addressing climate challenges.
Target Year: 2032
BJC measures its progress on Climate Strategy & Energy Management through the target of reducing scope 1 & 2 emission by 15% and reducing non-renewable energy consumption per revenue by 15% from the base year (2021) by 2032. This metric systematically tracks the efficiency of energy use in relation to the company's financial performance, ensuring that growth does not come at the expense of increased non-renewable energy consumption.
To achieve this target, BJC monitors energy consumption across all operations, implementing initiatives like the "Big C Solar Roof Project" to increase the use of renewable energy. Additionally, BJC adopts eco-friendly equipment and integrates electric vehicles (EVs) to further reduce reliance on non-renewable energy sources. Progress is systematically evaluated through regular energy audits, tracking energy consumption data, and comparing it against revenue metrics. This approach enables BJC to identify areas for improvement, ensure compliance with sustainability goals, and transparently report on its advancement towards the 15% reduction target by 2032.
Progress
In 2023, BJC made significant strides towards its climate strategy and energy management targets. The company achieved a 17.3% reduction in Scope 1 and Scope 2 emissions and an 8% reduction in non-renewable energy use, both from the 2032 targets. Highlighted projects from 2023 include:
- Solar Rooftop Installations: BJC installed solar rooftops at 59 additional Big C stores and one distribution center, generating 54,531,938 kWh per year, saving 76,898,561 million baht. Phase 7 plans to extend installations to 100 Big C stores and 271 Big C Mini stores in 2024.
- EV Truck Utilization: The use of EV trucks resulted in an estimated reduction of up to 40 tons CO2eq per vehicle per year. Plans for 2024 include switching from Euro 3 engines to Euro 5 engines, reducing particulate matter and nitrogen oxides emissions.
- Electric Forklifts: BJC Glass introduced 27 electric-powered forklifts across its operations, reducing energy consumption and GHG emissions compared to traditional LPG forklifts.
- Recycled Glass Cullet: BJC Glass collected 709,743 tons of recycled glass cullet, making up 61% of all raw materials used in production, and reducing 685 tons of carbon emissions.
- New Boilers at Rubia Industries: New boilers installed in 2022 saved 152,316 kg LPG annually, reducing Scope 1 emissions by 454 tCO2e and saving 3,408,831 baht per year.
- Energy Efficiency at BJC Cellox: Implementations of Vacuum Blower-Motor, Steam Trap PM4, and Solar LED Floodlights reduced energy consumption by 30%.
These initiatives highlight BJC's commitment to reducing its carbon footprint and advancing its energy management goals, addressing critical climate challenges, and enhancing sustainability throughout its operations.
Executive Compensation
BJC has set specific targets for executives responsible for energy management as part of their KPIs to achieve long-term sustainability goals, directly influencing their annual remunerations. For climate and energy management, business unit heads of store operations are accountable for KPIs focused on reducing energy consumption, integrated into the sustainability KPIs. The criteria for these targets include decreasing total and non-renewable energy consumption within the organization, specifically for building and store operations. Additionally, the business unit heads of factory operations have KPIs aimed at reducing GHG emissions (tons of CO2). These metrics ensure that executives are actively engaged in driving BJC's climate and energy management objectives, aligning their performance and compensation with the company's commitment to sustainability and reducing its environmental footprint. This strategic approach not only incentivizes energy efficiency and emission reductions but also promotes a culture of accountability and environmental stewardship within BJC.
3) Employee Management
Employee management is crucial to BJC due to the diverse nature of its operations, spanning multiple industries. This diversity requires a varied workforce in skills, backgrounds, and perspectives, making effective management essential for maintaining a balanced and productive work environment. Retaining skilled employees is vital, as hiring and training new staff is expensive and time-consuming.
Beyond financial incentives, BJC recognizes the importance of work-life balance, significantly impacting employee satisfaction and productivity. Meeting these expectations helps retain talented staff and reduces turnover rates.
BJC is also committed to Diversity, Equity, and Inclusion (DEI). A diverse workforce enhances creativity and innovation, bringing varied viewpoints and solutions to the table. Managing such a workforce requires careful consideration to ensure all employees feel valued and included. DEI initiatives help foster an inclusive culture where everyone can thrive, contributing to BJC's overall success. Effective employee management, including DEI principles, is essential for BJC’s long-term success and sustainability.
Business Strategies
In 2023, there was no major layoff, and BJC focused on attracting and retaining top talent through strategic initiatives. Key strategies included offering market-competitive pay and benefits packages, recognizing and rewarding employees, providing clear career growth opportunities, and implementing flexible work arrangements. These measures aim to reduce turnover rates, foster a positive and engaging work environment, and minimize the need for new hires.
To address the increasing popularity of digital solutions, BJC expanded its recruitment reach by implementing and upgrading online recruitment platforms. This approach not only increases opportunities for hiring talented employees but also reduces face-to-face interactions, crucial during the pandemic. Additionally, BJC continues to engage current employees through digital platforms, ensuring retention and satisfaction within the organization.
BJC's human capital management strategy emphasizes inclusivity and belonging. The company has adjusted employee benefits to cover all genders, including LGBTQ+ individuals, ensuring a supportive and equitable work environment. By leveraging innovative recruitment practices and targeted outreach efforts, BJC aims to expand its talent pool and attract diverse candidates.
Initiatives such as mentorship programs and career development pathways are central to this strategy, ensuring long-term engagement and retention of employees. These efforts drive sustained organizational growth and success, reinforcing BJC's commitment to creating a thriving, inclusive workplace for all employees.
Target Year: 2023 (Annually, On-going)
In 2023, BJC focused on attracting and retaining top talent through strategic initiatives, achieving an annual target of 82% actively engaged employees. This target measures progress systematically, reflecting BJC’s commitment to employee satisfaction and retention. Key strategies included offering market-competitive pay and benefits packages, recognizing and rewarding employees, providing clear career growth opportunities, and implementing flexible work arrangements to reduce turnover rates and foster a positive work environment.
BJC expanded its recruitment reach by upgrading online platforms to attract talented employees. BJC set a measurable target to enhance employee management, focusing on retention and satisfaction through engagement. By revising benefits to be inclusive of all genders, including LGBTQ+ individuals, BJC demonstrated its commitment to inclusivity and belonging. Innovative recruitment strategies attracted a diverse talent pool, while mentorship programs and career development pathways fostered long-term engagement. These initiatives ensured sustained retention and satisfaction, illustrating BJC's effective progress in human capital management and meeting their strategic goals.
Progress
In 2023, BJC achieved its target of 82% actively engaged employees through strategic initiatives aimed at attracting and retaining top talent. This progress is a testament to BJC's commitment to employee satisfaction and retention. The company offered market-competitive pay and benefits, recognized and rewarded employees, provided clear career growth opportunities, and implemented flexible work arrangements, significantly reducing turnover rates over the years (2020: 62%, 2021: 48%, 2022: 45%, 2023: 27.5%).
The expansion of recruitment reach through upgraded online platforms increased opportunities to hire talented employees. Engagement with current employees via both onsite and digital platforms ensured high levels of retention and satisfaction. Prioritizing inclusivity, BJC revised benefits to cover all genders, including LGBTQ+ individuals, and utilized innovative recruitment practices to attract a diverse workforce. Annual human rights due diligence reinforced fair treatment for all, underscoring BJC's commitment to inclusivity and equity. Additionally, initiatives such as mentorship programs and career development pathways promoted long-term engagement and retention, driving sustained organizational growth and success.
Executive Compensation
The compensation of BJC's executives is linked to the annual performance KPI of increasing the employee engagement score. This metric is directly related to the percentage of actively engaged employees, which was targeted and achieved at 82% in 2023. High engagement scores reflect the effectiveness of BJC’s strategies in offering competitive pay, benefits, clear career growth opportunities, and flexible work arrangements.
Increased employee engagement leads to higher productivity, lower turnover rates, and a more positive work environment, contributing to BJC’s overall success. By focusing on enhancing employee engagement, executives drive initiatives that improve satisfaction and retention, ensuring a motivated and committed workforce. This alignment of executive compensation with employee engagement ensures that leadership prioritizes creating a supportive and inclusive workplace, ultimately benefiting BJC’s growth and sustainability. This systematic approach, measured by the engagement score, ensures BJC remains competitive and attractive to top talent.
Material Issues for External Stakeholders
1) Supply Chain Management
BJC's supply chain management practices have a material external impact on societal stakeholders and the environment due to several key reasons. Firstly, BJC's suppliers, including farmers and SMEs, play a crucial role in shaping the quality and availability of products and services offered by BJC. By implementing a sustainable supply chain approach and rigorous product quality and safety assessments across its suppliers, BJC ensures that these stakeholders benefit from enhanced product quality and increased production capacity.
This approach not only fosters positive impacts on suppliers by sharing knowledge and building capabilities but also enables them to improve their product offerings. Through these practices, BJC contributes to the sustainable development of its supply chain partners, thereby supporting their growth and resilience in the market.
Furthermore, by addressing non-financial risks such as environmental impact and social responsibility within its supply chain, BJC demonstrates a commitment to mitigating adverse effects on the environment and local communities. This proactive stance enhances transparency and accountability, which are increasingly valued by external societal stakeholders concerned with sustainable business practices.
In essence, BJC's focus on sustainable supply chain management not only strengthens its relationships with suppliers but also positively influences external societal stakeholders and the environment by promoting responsible business conduct and fostering continuous improvement in product quality and safety standards.
Supplier Development Programs
In 2023, BJC's Supplier Development Programs made significant strides in supporting and enhancing the capabilities of local SMEs, farmers, and suppliers.
Big C Big Smart Local: Launched in collaboration with the Department of Business Development of the Ministry of Commerce in 2022, this campaign identifies and nurtures potential SMEs, OTOP enterprises, and local farmers. The initiative elevates their product quality, safety, and nutritional value for sale on Big C online platforms. Dedicated experts from Big C provide guidance and practical demonstrations to help participants meet market demands while minimizing chemical usage, thus prioritizing consumer safety. This program not only expands business opportunities for small enterprises but also benefits customers by offering high-quality, locally sourced products in Big C Supercenters nationwide.
Smart Farming: BJC's Smart Farm initiative leverages technology to plan farming practices with farmers, aiming to enhance work efficiency and sustainable production. This program reduces electricity and water consumption, extends equipment lifespan, and lowers waste and unnecessary expenses. It also increases production while maintaining resource consumption levels, providing farmers with more income opportunities and a better quality of life. Additionally, Smart Farming reduces labor needs, addressing labor shortages and improving occupational health and safety, allowing farmers to save time and gain additional revenue streams.
Supplier Training: In 2023, BJC conducted a comprehensive two-day training program titled “Sustainability Essentials for Suppliers,” which involved 64 Big C suppliers. This program aimed to disseminate best practices in sustainable development across Environmental, Social, and Governance (ESG) considerations. The curriculum covered essential topics such as sustainable supply chain management, risk assessment, climate change mitigation, waste management, sustainable packaging solutions, occupational health and safety standards, human rights principles, and community engagement strategies.
These initiatives collectively contribute to the sustainable development of BJC's supply chain, ensuring that suppliers are well-equipped to sustain their business growth, which, in turn, aligns with BJC's commitment to higher profitability and long-term sustainability.
In 2023, BJC purchased 3,657 tons of agricultural products directly from farmers, contributing an average monthly income increase of 16,000 baht per household for over 12,293 households.
Output Metrics: Number of supplier' households with higher income
Impact Valuation: Improved household-level income for farmers
Impact Metric: Amount of income increase for farmers
2) Climate Strategy and Energy Management
BJC's climate strategy and energy management practices are crucial for the health of external societal stakeholders and the environment. Negative impacts from operations, such as GHG emissions and waste, can harm community health and local ecosystems. To counteract these effects, BJC implements reforestation to offset emissions and adopts solar rooftops, energy-efficient technologies, and EV logistics to shift towards low-carbon operations. These efforts not only align with BJC's net zero emissions target by 2050 but also enhance public health by reducing pollution and environmental degradation. This commitment benefits stakeholders through a cleaner environment, improved health outcomes, and responsible corporate citizenship.
These efforts not only contribute to achieving BJC's corporate-wide targets but also positively influence external stakeholders. By reducing environmental footprint and enhancing operational sustainability, BJC supports surrounding communities and ecosystems. This approach fosters resilience, promotes environmental stewardship, and aligns with societal expectations for responsible corporate citizenship. Ultimately, BJC's climate and energy management strategies play a crucial role in mitigating negative impacts and maximizing positive contributions to both external stakeholders and the environment. Through BJC’s commitment to being your trusted partner for a sustainable better living, BJC aims to improve the quality of life for all stakeholders, including communities. The topic of Community Development directly relates and impacts community as BJC believe them to be an important and influential stakeholder group to BJC’s revenue generation, corporate image, and revenue.
Highlight of Climate Actions
BJC has made significant strides in its commitment to reducing greenhouse gas (GHG) emissions, aligning with its ambitious goals of becoming carbon neutral by 2030 and achieving net zero GHG emissions by 2050 for scope 1 and 2 emissions. In 2023, the company made remarkable progress through various initiatives aimed at enhancing energy efficiency and reducing carbon footprint.
One of the major highlights of BJC's climate actions is the extensive installation of solar rooftops. In 2023, solar panels were installed on the rooftops of 59 additional Big C stores and one distribution center. This initiative generates 54,531,938 kWh of clean energy annually, which translates into a reduction of approximately 38,172 tons of CO2 emissions per year, along with significant financial savings of 76,898,561 million baht. The upcoming Phase 7 plans are even more ambitious, with the aim to extend solar installations to 100 Big C stores and 271 Big C Mini stores by 2024, further amplifying the impact on GHG reduction.
BJC has also embraced electric vehicle (EV) technology to cut down emissions from its logistics operations. The utilization of EV trucks has resulted in an estimated reduction of up to 40 tons of CO2 equivalent per vehicle per year. To complement this effort, BJC plans to upgrade from Euro 3 to Euro 5 engines in 2024. This upgrade will significantly lower emissions of particulate matter and nitrogen oxides, contributing to cleaner air and reduced GHG emissions.
In addition to its transport initiatives, BJC has introduced 27 electric-powered forklifts across BJC Glass operations. These electric forklifts replace traditional LPG forklifts, leading to reduced energy consumption and lower GHG emissions. This switch not only supports BJC’s environmental goals but also enhances operational efficiency.
The use of recycled materials is another key component of BJC's climate strategy. BJC Glass has collected 709,743 tons of recycled glass cullet, constituting 61% of all raw materials used in production. This substantial use of recycled materials has resulted in a reduction of 685 tons of carbon emissions, showcasing BJC’s commitment to sustainable manufacturing practices.
Furthering its efforts to reduce GHG emissions, BJC installed new boilers at Rubia Industries in 2022, which saved 152,316 kg of LPG annually. This initiative reduced Scope 1 emissions by 454 tons of CO2 equivalent and achieved financial savings of 3,408,831 baht per year, highlighting the dual benefits of cost-efficiency and environmental responsibility.
BJC Cellox has also made significant improvements in energy efficiency. The implementation of a Vacuum Blower-Motor, Steam Trap PM4, and Solar LED Floodlights led to a 30% reduction in energy consumption. These measures not only reduce operational costs but also significantly cut down GHG emissions, supporting BJC’s broader environmental objectives.
Moreover in 2023, BJC partnered with local communities and the Royal Forest Department to restore forests in Chiang Rai through the "Planting Big Trees For Our House" project. This initiative involved planting 20,000 trees in national reserved forest areas such as Doi Luang Forest, Nam Yao Forest, and Nam So Forest in Chiang Khong District, Chiang Rai Province. The project aims to restore 100 Rai of degraded forest, recognizing forests' crucial role in absorbing carbon dioxide (CO2). It aligns with BJC's commitment to sustainability and its goal of achieving net zero greenhouse gas emissions (Net Zero) by 2050
BJC has made notable progress in reducing its greenhouse gas emissions and energy consumption from 2022 to 2023. The total direct greenhouse gas emissions were reduced by 5,413 metric tons of CO2 equivalents, representing a reduction of approximately 1.07%. This reduction underscores BJC's commitment to minimizing its environmental impact and moving towards its long-term sustainability goals.
In terms of energy consumption, BJC achieved significant improvements, reducing its total energy consumption by 55,000 MWh. This decrease highlights BJC's efforts to optimize its operations and reduce energy waste. Additionally, BJC increased its use of renewable energy by 10,254.14 MWh, further supporting its sustainability objectives.
Moreover. According to data from the Ministry of Public Health, it shows the number of patients with illnesses related to air pollution and respiratory issues in Chiang Rai province. In 2022, there were 234,334 patients, and in 2023, there were 231,390 patients, a decrease of 2,944 patients or 1.26% from 2022. This indicates the air quality situation in the area, which may have improved due to BJC's development of forest areas in Chiang Rai province, resulting in a reduction in air pollution levels that impact the health of the local population.
Output Metrics: Air pollution reduction
Impact Valuation: Quantified quality of life impacted
Impact Metric: % reduction of patients with air pollution related illness
BJC and Sustainable Development Goals
BJC has adopted sustainability principles and approach, integrating sustainability considerations throughout the company, covering environmental, social and governance (ESG) dimensions in all business decisions, strategies, and targets. This approach does not only drive corporate sustainability, ensure business resilience when facing with emerging and unpredictable risks and opportunities, but it also contributes to the United Nations Sustainability Development Goals (UNSDGs) promoting sustainability throughout the value chain.
