Material Sustainability Issues (Materiality Topics)

Supply chain management

Supply chain management

Responsible Supply Chain Enhancement for Sustainable Shared Growth

The Company recognizes that business sustainability begins with a strong supply chain foundation. It is therefore committed to managing its supplier network with transparency, fairness, and responsibility under the Supplier Code of Conduct, to ensure that all stages of raw material procurement are free from human rights violations and do not cause adverse environmental impacts.

0%

Proportion of new suppliers fully screened against environmental, social, and governance (ESG) criteria in 2025

0%

Proportion of existing suppliers assessed for sustainability (ESG) risks in accordance with the established target

5.97

Percentage of RSPO-certified palm oil used against total palm oil consumption
in 2025

Supply chain management

Composition of
Management Structure

Governance
Governance through the Supplier Code of Conduct: The Board oversees the implementation of a Supplier Code of Conduct that comprehensively covers all ESG aspects, ensuring that suppliers comply with the Company’s standards.
Strategy
Traceable Sourcing Strategy: The Company focuses on sourcing key raw materials that are sustainable and traceable, particularly high-impact commodities, to mitigate risks related to deforestation and human rights.
Risk management
Human Rights Risk Assessment across the Value Chain: The Company conducts human rights due diligence covering risks from raw material sourcing to employment practices, to prevent human rights violations.
Metrics and Targets
Supplier Assessment Coverage Target: The Company sets a percentage target for suppliers to be assessed for sustainability risks or certified against relevant standards, demonstrating its commitment to building a responsible supply chain.

Supplier Capacity Building

The Company not only establishes standards for compliance, but also focuses on acting as a partner in strengthening supplier capabilities. It provides in-depth knowledge-sharing activities on ESG risk assessment and communicates sustainable procurement criteria, enabling suppliers to adapt, improve their production processes, and grow steadily in line with the Company’s standards.

Management

The Company manages its supply chain through a robust three-step operating mechanism:

(1) Rigorous Screening: Sustainability assessment criteria (ESG Screening) are applied as a key requirement for the registration of all new suppliers.

(2) Assessment and Monitoring: Existing suppliers are regularly assessed for risks to identify areas for improvement and jointly develop corrective actions.

(3) Traceability: The Company drives the traceability of agricultural raw material sources to enhance transparency and verify fair sourcing practices.

Supplier Assessment and Due Diligence Mechanism

The supplier assessment system enables the Company to effectively select qualified and suitable suppliers that align with its organizational risk management and ESG policies.

105 person
Strategic Tier 1 Suppliers
Assessed
48 person
High-risk suppliers received on-site assessments.
and resolved the identified risk issues.
1. Target Group

Existing Suppliers

VENDOR VISIT
to enhance understanding, verify standards, build confidence in suppliers’ capabilities, and foster strong business relationships
ESG Risk Mitigation
to align with the annual risk management plan and effectively mitigate risks related to business unsustainability
develop corrective actions
when quality issues are identified in previously purchased products

New Suppliers

Supplier Onboarding
to provide an overview of the business, expectations, and opportunities for future collaboration
Supplier Assessment and Risk Mitigation
Analyze performance, business information, and organizational structure, and assess potential risks in alignment with ESG guidelines
2. Audit Process
Monitor Risk Assessment Results

Company Audit

  • Audited by the TF team
  • Self-Assessment

Preliminary Supplier Assessment Results:

  • Potential to become a supplier
  • Requires improvement (with guidance provided by the Company)
  • Not yet suitable for business engagement
3. Implementation

Supplier Registration

Suppliers agree to comply with SUPPLIERS CODE OF CONDUCT and SUPPLIER GUIDELINE TF’s requirements in suppliers’ business activities strictly

Corrective Action and Improvement

If suppliers’ processes or product quality do not comply with the established standards, requirements, or regulations, corrective actions and follow-up measures shall be implemented to ensure continued alignment with TF’s standards.

Performance Achievements (Impact & Results)

The Company’s commitment to enforcing policies and fostering supplier engagement has enabled it to build a high-standard, transparent supply chain network that is well-prepared to drive sustainability.

8d.jpg

1 %

ESG Screening for New Suppliers

1 %

Supplier Risk Assessment
Thai red and green chilis or Prik chee fah also sometimes known as Birds Eye chile pepper fiery peppers rated at 50,000 to 100,000 scoville units

Long-term Targets (Commitment)

The Company is committed to continuously maintaining 100% achievement in supplier risk assessment and ESG screening for new suppliers, while expanding the traceability coverage of raw materials to further strengthen consumer confidence and foster a sustainable business ecosystem across the value chain.

Towards a Sustainable and Transparent Supply Chain

Progress in Responsible Supply Chain Management

Performance