Water management

The Company assesses water-related risks using the Aqueduct Water Risk Atlas 4.0 developed by the World Resources Institute (WRI). This careful assessment model covers the following: Physical Risk Quantity (e.g., baseline water stress, riverine flood risk, and drought risk), Physical Risk Quality, and Regulatory and Reputational Risks for the Company’s manufacturing facilities and critical tier 1 suppliers.

The Aqueduct tool categorizes risks into four levels: Low (<10%), Low–Medium (10–20%), Medium–High (20–40%), and High (40–80%).

The Company’s factories are classified as Medium–High (20–40%) in terms of water risk.

While not considered high-risk, water-related issues are actively managed through continuous monitoring, and by carefully identifying both the risks and the opportunities.

Aware that water supply and resources are at risk due to climate change, the Company uses the Task Force on Climate-related Financial Disclosures (TCFD) framework in integrating climate change considerations into its business operations and goals.

Adaptation measures are also in place to address specific risks, such as water scarcity, drought, and flooding.

These efforts are tracked with the KPIs to reduce water usage, identify alternative water sources, and create emergency plans, in case of flooding, at each site.

In 2025, i-Tail conducted an assessment of water-related risks across its critical Tier 1 supply chain, with a focus on regions linked to aquaculture, seafood processing, and agricultural feedstock production. Using the WRI Aqueduct tool, the Company identified 10 suppliers of key agricultural commodities including maize, rice, soy, and sugar—operating in areas classified as water-stressed.

These commodities represent less than 1% of the Company’s total procurement spend, as sourcing is primarily concentrated in seafood. To ensure systematic monitoring, water risk mapping tools have been integrated into i-Tail’s Sustainable Supply Chain Program. Mitigation measures are implemented through targeted supplier engagement, including risk-based site assessments, supplier self-assessment questionnaires, third-party audits, and capacity-building initiatives focused on water stewardship and responsible water management practices.

Our progress

In 2025, i-Tail Songkhla factory completed Phase 1 of its reverse osmosis (RO) water system, resulting in a 3% reduction in water withdrawal intensity compared to 2024. This milestone supports the Company’s broader water reduction and “dry concept” strategy, which focuses on minimizing water use at source through detailed assessments, process optimization, and the reduction of water-intensive activities.The strategy is further strengthened through the reuse and recycling of water for non-food and non-human contact purposes, in full compliance with food safety standards. In parallel, the Company continues to develop alternative water sources—including surface water, rainwater harvesting, and groundwater to reduce reliance on freshwater resources and mitigate potential impacts on local communities, particularly in water-stressed areas.

Water Recycling Facility:

The newly completed recycling facility plays a crucial role in the zero-discharge approach, ensuring that water used in the production process is treated and reused within the plant. This reduces dependency on external water sources and minimizes wastewater discharge into the environment.

Sustainable Water Usage:

Through the implementation of water-saving technologies and the use of its recycling facility, water consumption at i-Tail Songkhla became more efficient and on par with global standards in resources management.