Environmental Management

DESIGNING FOR RESILIENCE

Modernform recognizes that operating a business in today’s world, which faces climate crises and global economic volatility, requires a “foundation resilient to change” or Resilience in every dimension of operations. This is especially critical in production processes and the supply chain. Creating business resilience is a vital mission that goes beyond mere adaptation; it involves the continuous creation of innovations that reduce resource reliance and minimize environmental impact.

The Company is committed to being a leader in Eco-Production within the furniture industry by integrating ESG principles into management. We emphasize measurement and pollution control, efficient resource utilization, driving the Circular Economy, and preparing for Occupational Health and Safety (OHS) risks arising from the environment. All of these are core to delivering a sustainable world and building long-term stability for the Company.

In 2025, Modernform elevated its resource management in accordance with the pledges made in the 2024 Sustainability Report. The Company has entered the Factory Consolidation phase, moving operations to the Bang Phli center. Although the expansion of activities resulted in a quantitative increase in Greenhouse Gas (GHG) emissions and water usage, the Company achieved its efficiency targets. Notably, the proportion of production waste (wood scraps) was controlled at only 0.25%, and accumulated hazardous waste from the factory relocation was managed in strict compliance with the law. This reflects the Company’s Resilience and environmental responsibility during a significant business transition.

The Company has established a production management policy to ensure high-quality products that meet international standards, prioritize safety, and demonstrate environmental responsibility. Our operations are supported by the following certifications:

Environmental Management

Environmental Policy and Commitment

Commitment and Goals

Modernform is committed to operating sustainably as an environmentally responsible organization. We prioritize resource management and the control of negative impacts throughout the value chain. This policy is governed under the ISO 14001:2015 Environmental Management System and the ISO 45001:2018 Occupational Health and Safety Management System to ensure operations strictly comply with international standards and relevant laws.

Environmental Policy

Modernform is committed to sustainable business operations based on environmental responsibility. We recognize the importance of environmental management systems to reduce impacts arising from business operations, products, and services that may affect society and surrounding communities. Therefore, the Company has established the following Environmental Management Policy:

1. The Company shall strictly comply with all applicable environmental laws, regulations, rules, and requirements.
2. The Company shall protect, prevent, and control pollution resulting from its operations to minimize environmental impact.
3. The Company shall promote a suitable working environment and encourage the efficient use of resources.
4. The Company shall communicate this policy to all personnel at every level for their acknowledgment and make it available to interested external parties. It is the duty of all employees to comply with environmental regulations. The Company will provide appropriate budget, personnel, and time resources to enable all personnel to implement the policy effectively and achieve its intended objectives.
5. The Company shall continuously improve and develop its environmental management system.

Operational Guidelines

The Company has defined operational guidelines to drive the environmental policy in alignment with the Designing for Resilience strategy and integrated them into core work processes as follows:

1. Regulatory Compliance: Ensure all units strictly adhere to environmental laws and requirements. The responsible department defines the frequency of internal audits and maintains proactive corrective plans for any non-compliance.
2. Application of 3Rs and Eco-Production: Implement production process improvements to reduce waste at the source and systematically reuse production waste within the production line.
3. Energy and Fuel Control: Utilize awareness campaigns to build an energy-saving culture and implement engineering improvements (e.g., Big Fan, AC Replacement) to increase electricity efficiency.
4. Responsible Water Management: Enforce the “8 Water Conservation Measures within the Organization” and manage used water of appropriate quality by reusing it for non-production activities, such as watering green areas within the Company, to reduce tap water consumption and maximize water resource utility.
5. ESG Integration into Personnel and Value Chain: Communicate and campaign on environmental issues among employees (Safety Talk, Morning Talk) and extend environmental expectations to suppliers.

Sustainability Performance and Targets

The Company has defined clear and measurable environmental performance targets to drive the organization according to the Modernform Sustainability Roadmap, aiming for Carbon Neutrality by 2050.

(SDG 13: Climate Action, SDG 12: Responsible Consumption and Production)

Sustainability Performance and Targets Table

Performance Notes:

[1]: Impacts from the consolidation of production bases and organizational restructuring, which resulted in an increase in GHG Scope 1 and 2 emissions in 2025.

[2]: Total water consumption increased by 24.6% due to an 18% increase in personnel resulting from the consolidation of production bases.

Environmental Compliance

Commitment and Guidelines

The Company prioritizes strict compliance with environmental laws and requirements from regulatory bodies. The Occupational Health, Safety, and Working Environment Committee (OHS Committee), comprising management and operational representatives, is responsible for ensuring continuous compliance with legal and safety standards. Monthly monitoring and assessments of production processes are conducted to prevent environmental impacts on surrounding communities.

2025 Performance

From the audit of operational records and legal compliance reports throughout the 2025 fiscal year, the following data was found: