Water Management and Water Security

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.