Energy and Resource Management

Energy Management

Commitment and Goals

The Company is committed to reducing reliance on traditional energy sources and enhancing electricity efficiency in both factories and offices, which are the organization's primary energy consumers. We have set a strategic target to reduce electricity consumption by 5% by 2030, while driving toward becoming a low-carbon business.

Operational Guidelines

The Company has defined energy management guidelines in two primary areas: Technical Measures and Employee Awareness Measures.

1. Technical Measures:

• Installation of High-efficiency Big Fans: Installed 2 additional high-efficiency Big Fans in the upholstery production line to reduce the load on air conditioning systems.
• Air Conditioner Replacement: Replaced older units with high-efficiency models (High EER/SEER).
• Renewable Energy Management (Solar Rooftop): Maintained the existing system to operate at maximum potential and explored new avenues to reduce fossil fuel reliance.

2. Awareness Measures: Campaigned through the “4Ps: Save Electricity Every Month” initiative, focusing on simple and effective daily practices: Pid (Turn Off), Plod (Unplug), Prayat (Save), and Prab (Adjust). This is considered the responsibility of every employee.

Renewable Energy Management (Solar Rooftop)

The proportion of renewable energy in 2025 stood at 35.53%. While the volume of electricity generated from solar energy varies based on annual sunlight intensity, the Company remains focused on utilizing clean energy to the full capacity of the installed system to reduce fossil fuel dependency.

Strategic Results in Energy Management (Scope 2 Reduction)

In 2025, the Company successfully implemented technical measures to enhance energy efficiency and significantly reduce GHG emissions:

• Technology-driven Efficiency: By installing 2 units of Big Fans in the production line and replacing high-efficiency air conditioners, total electricity consumption was reduced by 11,759 kWh/year, equivalent to a reduction of 5.88 tCO2e per year.
• Clean Energy Proportion: The Solar Rooftop system generated 1,025,522 kWh, accounting for 35.53% of total factory electricity usage. This achieved the renewable energy efficiency target and helped reduce GHG emissions by 512.66 tCO2e per year.

Note: GHG calculation: referenced the emission factor of 0.4999 kgCO2e/kWh from the Thailand Greenhouse Gas Management Organization (Public Organization) or TGO.

Big Fan Installation and Air Conditioner Replacement Project.

Fuel Management - Scope 1 Reduction

Commitment and Goals

The Company is committed to reducing fuel consumption within Scope 1 by adhering to Logistics Efficiency principles and safety readiness to ensure transportation is environmentally friendly and maintains the highest safety standards.

Operational Guidelines

1. Sustainable Transportation Management: Operated under the “Smart Logistics Loop,” which consists of 4 core activities: Maintenance (100% condition check), Loading (Maximize Space), Route (Optimization), and Monitoring (Fuel consumption tracking).
2. Preventive Maintenance: Required drivers and installation teams to perform a 100% basic vehicle checklist every morning before departure to reduce fuel loss from incomplete combustion.
3. Preparation for Low-Carbon Transportation: Studied the feasibility of transitioning the fleet to Electric Vehicles (EV) to support the Carbon Neutrality target by 2050.

Water Management and Water Security

Commitment and Goals

Modernform is committed to managing water resources with maximum efficiency according to the 3R principles (Reduce, Reuse, Recycle). Although our furniture manufacturing is a "dry process" that does not consume water intensively, the Company has established clear, time-bound water management targets to ensure resource security in alignment with SDG 6 as follows:

1. Process-based Target: Focus on elevating the data collection and monitoring system. The Company aims to install water meters for every building and core operational unit, achieving 100% coverage by 2026. This will enhance efficiency in monthly leak detection and enable precise, timely identification of water loss in the sanitary system.
2. Quantitative Target: Aim to reduce Water Intensity by 5% by 2027 (compared to the 2023 base year). This is driven by defining sub-targets for operational units to create shared responsibility throughout the value chain:

• Production Line: Focus on process efficiency improvements and set a target to reduce water usage in production support activities by 5% by 2027.
• Logistics: Strictly control water usage in vehicle preparation and cleaning areas, supported by a monthly leak inspection system to maintain the 5% reduction target.

Operational Guidelines

The Company operates through control mechanisms and technology to reduce water loss as follows:

1. Sustainable Transportation Management: Enforced the “8 Water Conservation Measures within the Organization” strictly, with monthly random leak inspections.
2. Wastewater and Sanitary System Management: Strictly controlled the quality of effluent from employee consumption through a private wastewater treatment system. Regular monitoring and testing are conducted to ensure 100% of discharged water meets legal standards before being released.
3. Communication: Utilized an Omni-channel reporting system and submitted quarterly performance reports to government agencies.

Performance Results

1. Quantitative Result: Total water consumption in 2025 was 24,049 cu.m., higher than in 2024.
2. Qualitative Result: Effluent quality passed 100% of legal standards.

Analysis and Proactive Guidelines for Managing Fluctuations

Total water consumption in 2025 was 24,049 cu.m., an increase of 24.6% compared to 2024. The primary cause was the consolidation of production bases at the Bang Phli center, a strategic restructuring to increase long-term efficiency. During this transition, the Company is improving its water management system to accommodate the increased usage in the new facility, aiming to meet targets in the following year.

Given that Modernform’s furniture manufacturing is a dry process with no water used directly in machinery lines, 100% of water is consumed for employee well-being and sanitary systems. To manage the Intensity Target for the coming year, the Company has prepared the following proactive measures:

1. Operational Point Control: Piloting water outlet monitoring and Nozzle Control systems, along with strict cleaning protocols in high-usage areas such as Logistics and vehicle wash stations.
2. Preventive Maintenance: Increasing the frequency of inspections for leaks in pipes and sanitary systems within the facility every month to eliminate non-beneficial water loss.

Resource Efficiency and Sustainable Sourcing

Commitment and Goals

Modernform Group Public Company Limited (“The Company”) adheres to Circular Economy principles, focusing on increasing resource efficiency to create maximum benefits throughout the Product Life Cycle. To reduce the extraction of new resources into the production system, the Company has established the following proactive targets to elevate material transparency:

1. Maintaining 100% Certified and Legal Wood Standards: The Company successfully procures Panel Boards, the primary component of furniture products, from partners certified under international standards: FSC (Forest Stewardship Council) or PEFC for 100% of the total procurement volume. This guarantees the Traceability of wood sources from commercial reforestation and ensures 100% legal wood materials. The Company is committed to maintaining this 100% green procurement standard annually to support the goal of ending deforestation throughout the supply chain.
2. Environmental Data Traceability: For the office chair product group, the Company focuses on collecting data regarding recycled content and material sources, aiming for 100% coverage by 2026. This data will serve as a foundation for developing eco-friendly products and increasing the proportion of circular materials tangibly.
3. Long-term Material Waste Control (Target 2026-2031): The Company continuously aims to maintain stability and control the wood wastage rate in production processes to not exceed 3.00% of total wood consumption annually, coupled with developing cutting technologies to move toward a Zero Waste concept.

Operational Guidelines

1. Sustainable Planning and Design Innovation: Integrated Eco-design concepts into the product development process by selecting materials with recycled content and designing for durability and easy maintenance/part replacement. This is coupled with the use of Opti-planning Software to accurately calculate furniture part layouts on panel boards before actual cutting to minimize material waste at the source.
2. Green Supply Chain Management: Integrated sustainability criteria into procurement policies by making material traceability a key factor in supplier selection and evaluation to build supply chain confidence.

Performance Results: Resource Efficiency and Sustainable Sourcing

• Maximum Efficiency in Raw Material Management: Through the use of Opti-planning software combined with precision production technology, the Company controlled the wood wastage rate at the operational level to only 0.25% in 2025, which is well within the target of not exceeding 3.00%.
• Supporting the Domestic Economy: Achieved a Domestic Raw Material Sourcing proportion of 95.29% of the total procurement value, an increase from 88.66% in 2024. This reduces GHG impacts from international transportation and supports local entrepreneurs.

Sustainable Raw Material and Material Management

Challenges, Issues, and Proactive Solutions in Work Processes

Although the Company has successfully controlled the wood wastage rate below the target, actual operations still face challenges from the characteristics of certain panel board lots, such as inconsistent thickness or the complexity of diverse custom-made product designs. These factors may increase the risk of inaccuracies and material waste. The Company has established the following proactive solutions:

• Operational Skill Development and Error Control: Focus on reviewing and training staff in the wood-cutting line regarding inspection criteria and part acceptance standards continuously to reduce errors from manual operations that could lead to waste, while strictly enforcing safety standards.
• Optimized Cutting Technology: Upgrade and enhance software for layout calculation and cutting to cover all types of custom orders, ensuring maximum utilization of the wood surface area.
• Wood Waste Upcycling & Biomass: Study collaboration with external partners to manage wood scraps that cannot be reused in core processes, such as small wood pieces, wood dust, and sawdust. These are sent for processing into Biomass energy as an alternative to landfilling, and some are developed into small decorative products to add material value according to Circular Economy principles.

Responsible Sourcing and Biodiversity Conservation

Commitment and Goals

The Company recognizes that the wood supply chain is directly linked to ecosystem health and forest areas. Therefore, we prioritize preventing negative impacts on biodiversity by adhering to responsible sourcing practices that do not impact natural forest areas.

Operational Guidelines

1. Selecting Economic Wood over Forest Wood: The Company prioritizes the use of Para rubber wood as the primary raw material for panel board production. This is an economic wood that can be replanted through domestic agriculture, avoiding reliance on raw materials from natural forests. The Company’s primary partners are certified under the FSC Chain-of-Custody (CoC) standard, which guarantees that raw materials originate from sustainably managed plantations.
2. Traceability System: Implemented a primary partner screening process through a permit documentation system and evidence confirming the source of raw materials to ensure that the Company’s supply chain is free from encroachment on protected forest areas.
3. Pollution Management for Ecosystem Protection: Controlled pollution from production processes through ISO 14001 standards and Green Industry Level 3 certification to prevent the contamination of waste and chemicals into the environment surrounding the operational areas.

Performance Results

• Ecosystem Conservation and Restoration: In 2025, the Company implemented the “Mangrove Reforestation at Bang Pu” project at the Army Nature Education Center (Bang Pu) to restore mangrove forests, which serve as natural barriers and high-efficiency carbon sinks.
• International Certification Status: The Company achieved its target of procuring 100% of wood panel boards from partners certified under international standards (FSC/PEFC). This guarantees the traceability of wood raw materials from legal sources. The Company is committed to maintaining this 100% green procurement standard annually to support the goal of ending deforestation throughout the supply chain.

Resource Management Progress against Targets

The Company systematically monitors and evaluates its resource management performance to track progress against the defined long-term targets as follows:

1. Process-based Progress

In 2025, the Company successfully improved resource management processes in several dimensions:

• Energy Management: Successfully installed high-efficiency Big Fan systems in the upholstery production line, which reduced the load on air conditioning systems as planned.
• Organizational Culture: The “4Ps: Save Electricity” campaign has been continuously expanded and has become part of the shared responsibility culture in every department.
• Logistics Efficiency: Developed more rigorous transportation management standards by implementing an efficient route planning system and enforcing a 100% Daily Checklist for delivery vehicles before operations to control fuel consumption, reduce idle time, and ensure safety standards throughout the journey.

2. Quantitative Progress

Summary Table of Progress against Targets