Sustainability and Corporate Governance Committee (Board-level Committee)

Sustainability and Corporate Governance Committee is chaired by an independent director from the Board of Director. The Committee members include the Chairman of Audit committee, the Chairman of Remuneration and Nomination Committee and a member of Executive Committee. Quarterly meetings are scheduled for the Committee in order update and discuss on sustainability performance including climate change topic and report to the Board of Director at least twice a year. As an annual process, the Committee reviewing and guiding annual budgets overseeing major capital expenditures, guiding employee incentives, reviewing and guideline climate strategy, overseeing and guiding the development of a transition plan, overseeing and guiding public policy engagement and reviewing and guiding the risk management process related to Climate issues. the Committee takes climate-related roles and responsibilities according to its charter as follows;

1) Frame policy and guideline on promoting innovation, environmental social responsibility (including climate change topic), and sustainable development plan
2) Oversee and ensure that the Company’s Board of Directors and executives act in full compliance with the established sustainability policy as well as review and assess the result
3) Report the results of the various activities undertaken, the results of the assessment of the compliance and the key issues relating to environmental social responsibility, and sustainable management to the Board of Directors at least twice a year
4) Oversee, ensure and monitor the progress of the activities of the various Sub Committees established by the Sustainability and Corporate Governance Committee (e.g. Sustainable Development Sub-Committee), and give recommendations and support as necessary. The Sustainability and Corporate Governance Committee has a direct supervision over climate-related policy, strategy, action plan, risk and opportunity management through Sustainable Development Sub-Committee
5) Coordinate with various sub-committees and working groups in considering issues related to environmental social responsibility, and sustainable management and give recommendations as necessary
6) Encourage and support the Company to communicate with Directors, executives, employees at all levels and related parties in an adequate and continuous manner, so that they will all be fully aware of and understand sustainability policy, and related guidelines
7) Oversee the completion of sustainability report and getting approval from the Board of Director prior to public disclosure.

Sustainability Sub-Committee

Developing a climate transition plan Implementing a climate transition plan Integrating climate-related issues into the strategy Setting climate-related corporate targets Monitoring progress against climate-related corporate targets Assessing climate-related risks and opportunities

Sustainable Development Sub-Committee as an important mechanism in driving processes and ensuring that executives and employees of the Company and its subsidiaries correctly and completely understand and earnestly practice business ethics and sustainable development of the organization. This is considered part of the Company’s organizational culture that the top management has established as the corporate governance observance that is one of the organization’s strategies and objectives. Both sub-committees must report to the Sustainability and Corporate Governance Committee every quarter .Responsibilities of the Sub-Committee include;
1) Reviewing policies, strategies, action plans and KPIs in environmental management including climate change. The results are reported to the Committee for approval annually
2) Evaluating emerging trends, climate risks and opportunities that could potentially affect business
3) Ensuring the alignment of business operation with sustainability policies, strategies, action plans and KPIs including elements related to climate change
4) Promoting understanding and providing recognition for employees of all levels to enable effective realization of the sustainability policies and guidelines
5) Monitoring progress and performance on sustainability topics including climate change.

Risk Management Committee

The Risk Management Committee has the following roles and responsibilities:

1.Review and refine draft risk management policies and frameworks before presenting them to the Board of Directors
2.Review risk assessments and risk management plans and provide recommendations or guidelines to mitigate risks to an acceptable level and ensure adequate risk management to achieve strategic objectives and create value for the organization
3.Regularly report to the Board of Directors on significant risks, risk status, and progress or results of risk management
4.Review and update the risk management framework and policies to ensure alignment with the organization's business context and environment

Corporate Sustainability Management Division

environmental management acts as a focal point in coordinating with relevant functions to monitor climate-related topics, at monthly to yearly interval depending on the nature of topics. The results are reported to the Committee at least semi-annually. Additionally, climate-related data will be consolidated annually and presented to the Sustainability and Corporate Governance Committee for reviewing as part of sustainability reporting process.

The involvement of top managements across the entire organization in this Sub Committee makes it a robust platform to exchange information, discuss key climate topics, form mutual commitments, and collaborate towards the goals.

1.Senior Vice President, Corporate Asset and Facilities Management is entitled to monetary incentive from energy efficiency management. His KPI is directly tied with over all facilities’ store energy reduction with 10% weight. The SVP is also responsible for driving innovative energy management at stores and increasing proportion of renewable energy in energy portfolio. The SVP also leads energy conservation committee whose KPIs are tied with “energy reduction and efficiency performance” cascaded from the Corporate Sustainability KPIs.

2.Assistant Vice President, Social and Environmental Management is entitled to monetary incentive from GHG emissions reduction. His KPI is directly tied with over all GHG emissions reduction and Promote Green product  with 40% weight. The AVP is also responsible for driving innovative GHG emission management. The AVP also leads 7 Go Green committee whose KPIs are tied with “Carbon Neutral by 2030 and Net Zero GHG Emissions by 2050” cascaded from the Corporate Sustainability KPIs.

The KPIs of other executives are also tied with a pool of KPIs that links with Corporate Sustainability KPIs to drive performances across functions.

1.Business Unit Managers are entitled to monetary incentive from energy reduction and efficiency performance. Their KPIs i.e. energy reduction and efficiency performance are cascaded from the Corporate Sustainability KPIs. Furthermore, Business Unit Managers who take part in Energy Conservation Committee also have the KPI directly tied with Corporate Sustainability Score (derived from DJSI score).

2.Business Unit Managers are entitled to monetary incentive from GHG emissions reduction performance. Their KPIs i.e. GHG emissions reduction performance are cascaded from the Corporate Sustainability KPIs. Furthermore, Business Unit Managers who take part in 7 Go Green Committee also have the KPI directly tied with Corporate Sustainability Score (derived from DJSI score).

Flood

• Disruption of production processes and customer service at 7-Eleven stores
• 7-Eleven employees affected by flooding
• Decrease in revenue due to reduced product sales at 7-Eleven stores by 53.50 Million Baht
• Loss of sales opportunities due to product shortages from the distribution center
• The cost of fighting water at the shop has increased from the normal branch shop to 120,000 Baht per branch

• Disruption in the transportation of goods from suppliers to 7-Eleven stores
• Customers unable to access 7-Eleven stores for shopping
• Communities surrounding 7-Eleven stores affected by flooding

The Company has designed the structure of 7-Eleven stores to withstand flood damage under the “Flood Resistant Store” concept. This includes design considerations such as elevated barriers, specialized flooring and door designs to withstand water pressure, drainage systems, and water pumps. However, in the event of flooding, the Company has established an operational response plan divided into three phases of incident management:

• Before the Incident (Prevention and Preparedness) Continuously monitor weather conditions from relevant agencies and assess risk scenarios to ensure branch employees are prepared. This includes relocating equipment and inventory to a safe location, preparing flood barriers to prevent water entry into 7-Eleven stores, and arranging facilities for employees in case of a sudden flood event
• During the Incident (Emergency Response)
  - If flooding occurs around the 7-Eleven store, monitor for potential water entry, relocate equipment and inventory to a safe area, and report the situation to the Flood Emergency Command Center
  - If water enters the 7-Eleven store, activate water pumps to drain the water and prepare to evacuate employees to a designated safe location
  - If flooding exceeds 30 cm or a flash flood occurs inside the 7-Eleven store, evacuate employees to the designated assembly point, provide first aid for injured employees, and support food, beverages, and temporary shelter for affected employees
• After the Incident (Recovery and Relief Plan) The Company conducts equipment inspections and restoration of 7-Eleven stores affected by the disaster. Additionally, the Company provides assistance to affected employees, distributes relief kits to disaster victims, and supports the surrounding communities

Drought / Brackish water

• Decline in production and product quality
• Shortage of agricultural products and raw materials
• Increased maintenance costs due to scaling, amounting to 15.67 Million Baht

• Decrease in agricultural production and raw materials from suppliers
• Supplier products failing to meet quality and standards
• Consumers may experience gastrointestinal illnesses due to consuming substandard products

• Procure water storage tanks to store reserve water for use in the production of drinking water and general water usage in areas affected by water shortages lasting more than one week
• Purchase water supplies specifically for beverage production in areas affected by water shortages or water quality issues
• Install a Reverse Osmosis (RO) system in areas with saline water, such as coastal regions or locations using groundwater with high hardness, to treat and improve water quality by reducing salinity and hardness
• Install an Air Water system to extract moisture from the air and produce high-quality water for use in 7-Eleven stores located in areas with raw water shortages or high relative humidity
• Provide training and guidance to farmers to prevent shortages of key raw materials used in production. Experts will guide farmers in soil improvement, planting processes, pruning, sorting, proper greenhouse placement, and the application of technology such as sensor-based automated irrigation systems, online data recording, and monitoring production outputs
• Allocate treated water that meets legal quality standards from the factory's natural water reservoirs to farmers around the factory to prevent shortages of essential raw materials for production

Plastic regulations

• Risk: Increased costs for sourcing alternative materials by approximately 802 million Baht
• Opportunity: Enhancing reputation in plastic waste management and services that promote greenhouse gas reduction

• Opportunity: Stakeholders trust the Company's plastic waste management
• Opportunity: Encouraging suppliers, consumers, and communities to recycle plastic waste

The Company has been implementing the Plastic Waste Management Roadmap from 2018 to 2030, applying the framework of Extended Producer Responsibility (EPR) to reduce plastic pollution and minimize the use of single-use plastic bags. This is achieved through strategic initiatives for sustainable packaging and plastic waste management across the product lifecycle, including: development of innovative production and design technologies based on the Eco-Design concept; adoption of reusable packaging in line with the circular economy; take-back programs for packaging recovery; recycling projects; and consumer awareness campaigns to reduce and eliminate single-use plastics.

Additionally, the Company promotes sustainable plastic waste management among supply chain partners by providing knowledge and supporting the implementation of EPR principles in their operations.

Regulations and Requirements of the Climate Change Act

• Risk: Increased operational costs within the organization
• Risk: Large enterprises and SMEs may lose competitiveness due to carbon footprint assessments, emissions trading systems, carbon taxation, and investments in renewable energy to mitigate climate change impacts

• Opportunity: Promote the increased use of renewable energy within the organization
• Opportunity: Encourage the adoption of technology to drive business operations across the value chain

The organization has conducted a detailed study of the Climate Change Act, focusing on analyzing its impact on production processes and operations, as well as identifying potential risks. Based on this analysis, an action plan has been developed to mitigate impacts and create business opportunities. The key measures include:

• Improving production processes by adopting environmentally friendly technologies, such as renewable energy and resource conservation
• Developing efficient energy and waste management systems
• Providing training for employees at all levels to raise awareness of climate change and encourage participation in implementing the plan
• Collaborating with suppliers to jointly reduce greenhouse gas emissions by educating them on greenhouse gas accounting and co-developing energy-saving equipment, as well as promoting the development of low-carbon products
• Developing environmentally friendly products and services to create business opportunities

Marketing

• Risk: Increased investment costs for developing low-carbon and environmentally friendly products
• Opportunity: Creation of new low-carbon product innovations
• Opportunity: Expansion into new customer markets
• Opportunity: Increased market share, generating revenue and profit that contribute to long-term business growth

• Opportunity: Stakeholders perceive the Company's brand image positively
• Opportunity: Encourage consumers to choose low-carbon and environmentally friendly products

• Developing environmentally friendly products and prioritize reducing greenhouse gas emissions throughout the product lifecycle, from raw material sourcing to production, transportation, usage, and disposal
• Obtaining carbon footprint certification for products from the Thailand Greenhouse Gas Management Organization (Public Organization: TGO) to raise consumer awareness

Reputation and Image

• Risk: Decreased demand for products and services due to a negative perception of the Company's image
• Risk: Stakeholder expectations regarding products, services, and business practices may impact the Company's reputation and brand value

• Opportunity: Stakeholders perceive the Company's brand image positively
• Opportunity: Promote consumer adoption of low-carbon and environmentally friendly products

• Establish the "7 Go Green" policy for 24-hour environmental sustainability
• Set targets and initiatives to drive environmental goals
• Implement Green Marketing strategies in business operations, and continuously launching environmental marketing activities and campaigns, such as the Reduce and Replace campaign, encouraging the use of reusable bags and bottles, adding an option to decline plastic bags, straws, spoons, and forks in the 7-Eleven Delivery app, and the "Just Say No = Plant a Tree" campaign