The Company operates under the policy on human rights and labor practices, encompassing all areas of business operations, including suppliers and business partners—which are in accordance with the UN Guiding Principles on Business and Human Rights (UNGP) and International Labor Organization (ILO) and labor laws of each country in which the Company operates in. The topics cover important human rights issues such as child labor, forced labor, discrimination, harassment, etc.

In 2022, the Company revised the policy on human rights and labor practices to be more rigorous and comprehensive. The policy consists of the following main issues:

In this regard, the Company has a process to assess important issues, impacts, and human rights risks on a regular basis every 3 years in all areas of business activities, encompassing workflow analysis (Full time equivalent: FTE), especially for units with risks. The Company also established integrated preventive measures and mitigated the impact of high-risk issues through the human rights process. The
details are as follows:

In the human rights policy review, to prevent and avoid human rights violations for all stakeholders, the Company raises awareness on the topic of respect and compliance with international human rights principles among employees at all levels, business partners, and level 1 key suppliers through various projects. The Company pushes for equality in the cost of living and employment in accordance with the policy and principles of compensation and benefits. Other topics revised are salary and benefits for employees and business partners (Store partners) to receive equal and fair compensation. The Company aims to expand the target to cover 100% of employees by 2025. There are plans to extend the assessment to suppliers and contractors in the future, as well as alleviate the level of safety and occupational health. There is a risk assessment covering all areas of the Company's operation, leading to the preparation of a project to reduce risks in safety, occupational health, and workplace environment. The Company also promotes a good quality of life for employees and their families through benefits, such as flexible working hours, support for the education of employees' children, and employees' health care.

Human Rights Due Diligence Process

The Company has set up a comprehensive, systematic, and efficient human rights audit periodically every 3 years. The Company was assessed in 2022 to identify key issues and rights holders affected, covering all operational areas and all business activities of the Company, including business partners, suppliers, contractors, joint ventures, and Mergers and Acquisitions. The Company considers important human rights issues that are likely to be relevant to its business operations, including forced labor, human trafficking, child labor, right and freedom of association, right to collective bargaining, equal remuneration, discrimination, sexual harassment, and other forms of harassment. Other issues include security, environment, and customer rights, encompassing stakeholders who are at risk of human rights violations—such as employees, communities and locals, business partners, suppliers, contractors, customers, and consumers. And vulnerable groups such as women, children, indigenous people, migrant workers, third-party contracted workers, people with disabilities, elderly people, and LGBTQ+. The Company listens to issues from relevant stakeholders to ensure the prevention of human rights violations in the Company's business operations.

Human Rights Risks Assessment

The Company conducted Human Rights Risk Assessment (HRRA) periodically every 3 years to assess the risk of human rights violations throughout the value chain-by identifying the key issues and the affected rights holders. Human Rights Due Diligence (HRDD) encompasses 3 main business groups by 100 percent of the business area and accounted for 100 percent of business activities, which consists of 4 activities: procurement, production and sales, marketing and sales, and customers and services.

In 2022, the Company reviewed and assessed human rights risks for original risk issues, current risk issues, and risks that are likely to occur in the future. These encompass the rights of employees, suppliers and contractors, community rights, and customer or consumer rights, as well as Working Conditions, Occupational Safety and Health, Discrimination and Harassment, Iegal Labor Used, Standard of Living, and Data Privacy. The Company found risks in Salient Human Rights Issues in the retail business, 7-Eleven convenience stores, and 24shopping, which include 1) issues on accident during operation and 2) inappropriate Personal Protective Equipment (PPE) issues. In addition, the Company conducted human rights risk assessments for all level 1 key suppliers, covering 1,985 suppliers. Examples of significant human rights risks are in the areas of monitoring the operational environment, training on safety in the workplace, an inspection of the condition of the equipment in operation, and equipment related to emergency response, including fire drills, among others. The Company encourages suppliers who detect risk issues to develop comprehensive preventive and remedial guidelines for human rights issues. The recommendation is for all high-risk critical tier-1 suppliers.

In case of human rights violations, the Company has a continuous monitoring, auditing, and reporting process. The process is under integrated measures to prevent and reduce human right impacts of high-risk issues. The objective is to ensure that appropriate corrective actions are taken. Rightholders affected by human rights violations will receive appropriate remedies, either in the forms of compensations or other types of remediations, as measures to improve the impacts of the damage inflicted into a more suitable or better condition. Examples are apologies, restitution, rehabilitation, and compensation in the form of monetary or non-monetary forms. Other corrective actions are punishment and prevention of harm, such as a prohibition order or a guarantee against recurrence.

Human Rights Impact Assessment

After completing the human rights risk assessment process, the Company continuously assesses the human rights impacts of affected individuals through data collection, surveys, and interviews with rights holders. The human rights impact assessment covers all areas that have been assessed for risks in 3 main business groups: 1) convenience stores in the retail business group, 2) consumer product wholesale and retail business group, and 3) other business groups-encompassing areas of financial services, production and distribution of bakery, ready-to-eat food and frozen food, education, information technology, marketing communications, and logistics management. If the Company finds anyone being affected, mitigation measures will be applied. Campaigns to raise awareness on the issues is also organized-for example; senior executives communicate messages to employees throughout the Company n on respectful treatment of all individuals according to human right principles.

Integrated human rights prevention and mitigation measures for high-risk issues

Under the scope of responsibility of the Company’s Store Partners (business partners)

Fair Labor Practices

The Company commits to respecting the labor rights of employees and fair practices to comply with laws and policies under Thailand and International Labor Protection Act through appropriate employment wages, working hours, holidays, and benefits. Measures also include a safe workplace and a good environment. The Company promotes welfare for employees, as follows:

The Company offers various welfare benefits to employees and provides support covering all key areas of the Company. The objective is to enhance holistic well-being for employees while working with the Company, such as emergency loan benefits from financial institutions with special interest rates, housing rental subsidy, subsidy in case of working in a provincial office (hardship allowance), as well as welfare security for life, such as provident funds, life insurance for disease and accident, group health insurance that provides protection for employees and their families, welfare on emergency loans for employees and their families, and financial assistance in the event of disasters. Other welfare includes health services (CP ALL Health Care Center) and a fitness center for employees (The Tara fitness Club) with a trainer who is an expert in a variety of disciplines. There are other projects, such as the Exercise My Way project and health measurement service by pharmacists with modern equipment-with the objective of promoting employees’ health.

Notes: Important areas in the implementation of support encompassing employees working in the office area, distribution center area, and operating areas of 7-Eleven stores.

Freedom of Association

The Company facilitates freedom of expression of opinions and channels for individuals to inform their concerns through a variety of channels such as electronic mail, information center, Company's online media, bell ringing, and Voice of Employee system, as well as through the Welfare Committee in the workplace, established under the Labor Protection Act 1998. At present, there are 2,108 employees representing the Welfare Committee or 100 percent of all employees. A meeting is organized every quarter for discussion. In 2022, additional recommendations approved were as follows:

1) Free meals as welfare to employees to alleviate the impact of the rising cost of living 2) Wages for female employees on maternity leave. The Company pays for 50 days from the original 45 days (more than the law specified) 3) Male employees can take 5 days of paternity leave to take care of their newborn child 4) Improve the working environment, such as adding lights and traffic markings for safer navigation in front of the factory. CCTV cameras are checked, and there is more installation of cameras in needed areas for safety.

Promoting equal opportunity and employee diversity

The Company commits to treating all employees equally and to respect the diversity of individuals on the basis of nondiscrimination of race, religion, gender, the color of one’s skin, language, age, and those with disabilities. The Company encourages and considers all employees in the employment process-for them to get anopportunity to develop their potential and career advancement equally. The Company also provides opportunities for people with disabilities by offering jobs to them through appropriate employment prospects. In addition, the Company and the Charoen Pokphand Group, together with other sectors, have organized activities to continuously emphasize and push for employees’ rights. In 2022, the Company organized training and seminars on issues that are aligned with global social trends on the topic “The importance of business in promoting the rights of LGBTI+ people.” The objective is to exchange ideas and promote equality and diversity systematically, as well as supporting all sectors and agencies in reducing inequality and truly creating opportunities. This extends to encouraging all groups of employees to show their full potential, internally and externally, to expand into the development of suitable products and services via an understanding of people’s diverse needs. Expected consequences are non-discrimination and absence of all forms of threats in business operations.

Living Wage

People are the heart of the business and are the ones who drive business success. Hence, the Company puts an emphasis on employees as the first priority. It is mandatory that the Company’s employees shall receive proper care, welfare, training, and other rewards and experience a good atmosphere at work and a safe workplace. The Company ensures that all employees are paid fair wages. The Company, therefore, has established a policy and principle on compensation and benefits. Employees and business partners (Store partners) salaries and benefits are regularly reassessed to be competitive in the same industry group, fair, and legally complied. The Company has always paid wages higher than the legal minimum wage, in addition to providing other additional allowances, such as overtime payments, transportation allowances, special allowances, housing rental support, food subsidies, and performance incentive payments. To ensure that the Company fairly pays wages and other benefits, the Company analyses wages annually by participating in a wages and benefits survey program led by leading global consultancy organizations, the Korn Ferry Hay Group and Mercer. The Company has also arranged to assess the impact of changing costs of living and other employment considerations in business operations. The Company has a target to fully assess the living wage of 100% of its employees within 2025 and putting in place plans to increase this analysis to critical tier-1 suppliers and contractors in the future.