Message from the Chairman of the Corporate Governance and Sustainability Committee

Business operations and activities have an increasingly severe impact on the environment and society. The importance of corporate governance that fosters confidence among stakeholders, investors, and the general public has increased both domestically and internationally.

The situation has increased reliance on financial information but may not be sufficient to make prudent decisions regarding investments. Managing the aforementioned risk factors while creating opportunities for economic value has attracted investor interest

KCG has acknowledged and prioritized environment, social, governance, and economic (ESG) even before listing on the stock exchange. The Company has embedded material topics into its operations throughout the business supply chain, crystallizing them into policies and strategies with the ultimate goal of integrating them into corporate culture.

The Board of Directors established the Corporate Governance and Sustainability Committee (CG&SD) to oversee and closely monitor sustainability performance. The Board aspires to be a top-rated company for “sustainability investment” in both domestic and international stock exchanges. After being listed on the Stock Exchange of Thailand on August 3, 2023, the Company received a 5-star rating, or Excellent CG Scoring for the Corporate Governance Report of Thai Listed Companies and ranked in the Top Quartile of listed companies with a market capitalization of 3,000 - 9,999 million Baht by The Thai Institute of Directors Association. The Company received the Sustainability Disclosure Acknowledgment Award from the Thaipat Institute for its sustainability information disclosure. In addition, the Company achieved an “A” rating in the SET ESG Ratings and was included in the SET ESG Index.

This sustainability report, while officially part of the annual report (56-1 One Report), is presented as a separate report. It serves as evidence of tangible success in a variety of areas, demonstrating pride, and collaboration of all executives and employees who have advocated for the understanding and significance of sustainable development. Therefore, I would like to extend my congratulations and heartfelt gratitude on this occasion. I hope to see continued progress and growth development in both the business sector and ESG dimensions endlessly merging into one.

Message from CEO

In 2024, the Thai economy faced multiple challenges, including new government policies, geopolitical conflicts, global economic and political volatility, household debt, a slowdown in consumer activity, and an increase in severe natural disasters, which clearly reflect the issues of global warming and climate change as well as the development of laws and regulations aimed at transitioning to a low-carbon society. These factors have driven all sectors to inevitably place greater focus on sustainability, alongside economic growth and business expansion.

KCG Corporation Public Company Limited manufactures and distributes butter, cheese, biscuits, and Western food products. The Company is committed to driving business toward sustainability, making sustainable development as one of our key strategies and emphasizing sustainability integration while considering its impact on stakeholders, society, and the environment. This includes reducing greenhouse gas emissions, developing efficient and environmentally friendly production process, enhancing product safety and quality, managing a responsible supply chain, promoting good corporate governance, and upholding human rights both within and outside the organization.

The Company focuses on developing sustainable supply chain management and creating culture of innovation and technology. KCG Logistics Park was launched in 2024 as an integrated distribution center in accordance with the Green Supply Chain strategy. KCG Logistics Park utilizes warehouse management technology to enhance the efficiency of supply chain and inventory management at an international level. The Company prioritizes environmental sustainability by using solar energy as a renewable energy source, increasing the use of EV trucks, partnering with suppliers to optimize product delivery routes, and implementing work systems and machinery to reduce workplace hazards.

As a result of these continuous efforts, the Company achieved an “A” rating in the SET ESG Ratings for 2024 in the agricultural and food industry group. The Company was also selected as one of the securities with promising performance in the 2024 ESG Emerging list and honored with the 2024 Sustainability Disclosure Acknowledgement Award from the Thaipat Institute in its first year as a listed company on the SET. In terms of governance, the Company earned a 5-star CGR rating and was ranked in the Top Quartile of listed companies with a market capitalization of 3,000 - 9,999 million baht by the Thai Institute of Directors Association.These achievements demonstrate the Company’s responsibility to stakeholders and a focus on environment, social, and governance dimensions.

The Company recognizes that this is the only beginning of the Company’s journey toward sustainability. As a result, the Company remains committed to collaborating with all sectors to make significant progress toward a sustainable future for a better environment and society.

As the Chief Executive Officer of KCG, I would like to express my gratitude to all stakeholders across the business value chain for their support and engagement in the Company’s commitment to sustainable development in order to create a positive impact and achieve sustainable growth for the benefit of society, the environment, and the economy