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Suntory Holdings Ltd and KTIS launch low carbon farming project in Thailand in collaboration with The VIVE Programme

The VIVE Programme, a leading voluntary sustainability programme managed by CZ (Czarnikow) and Intellync,  has today announced it has  launched  a three-year low carbon farming project for sugarcane in Thailand –  in collaboration with Suntory Holdings Limited and Kaset Thai International Sugar Corporation Public Co Ltd (KTIS).

The farming sector offers significant opportunities for carbon sequestration and emission reductions. The amount of greenhouse gas emissions from agriculture is significant: The agriculture, forestry, and land use (AFOLU) sector contribute between 13% and 21% of global greenhouse gas emissions. Low Carbon Farming practices offer farmers the opportunity to capitalise on the carbon market, as they shift to agricultural methods that are more sustainable, involve lower input costs and result in emission reduction and sequestration by sinks.

This pilot programme will facilitate the implementation of low carbon farming interventions (based on Regenerative agricultural practices), to achieve three key overarching ambitions:

  1. Support, and where possible, accelerate Suntory’s target of reducing Greenhouse Gas (GHG) emissions by 30% across the whole value chain by 2030, against a 2019 baseline.
  2. Develop commercially robust, low carbon commodity supply chains for the Suntory business.
  3. Support KTIS and supplying farms to explore a scalable solution for low carbon production of sugarcane.

With no major assets in growing, refining, or manufacturing, CZ expends more effort on addressing bigger environmental and social challenges in global supply chains. With better visibility of global supply chains, the VIVE Programme is best placed to manage this pilot, as a supply chain service provider between primary producers and industrial buyers.   

Sylvester Bamkole, Sustainability Associate, VIVE, CZ – “We are seeing significant interest from various ingredient and energy supply chain participants (producers, and buyers alike) who are increasingly committed to leveraging supply chain insights, to drive the implementation, measurement, and verification of key decarbonisation interventions across their global supply chains. The core purpose of VIVE Climate Action, is to deliver a holistic and science-based decarbonisation solution throughout raw material supply chains, creating carbon transparency, identifying opportunities, and developing critical partnerships for carbon reduction. Via VIVE Climate Action, we are excited to collaborate with Suntory and KTIS to implement a commercially viable pathway for carbon reductions and drive continuous improvement”

The pilot is sponsored by Suntory Holdings Limited, a global leader in the beverage industry with a uniquely diverse portfolio of products from alcohol & non-alcohol beverages to health & wellness products.

Brian Golden, Senior General Manager, Suntory Holdings Limited – “Suntory is deeply committed to enhancing resiliency and minimizing emissions throughout our agricultural supply chains, while simultaneously uplifting the livelihoods of farmers. To achieve this goal, we are collaborating with various partners on pioneering programs that embody innovation and sustainability in the agricultural sector. We are excited to launch this new initiative with VIVE and KTIS, which will leverage regenerative agricultural principles, supported by practical real-world insights, to drive transformative advancements for a more sustainable future.”

The participating mill will be Kaset Thai International Sugar Corporation Public Co Ltd (KTIS), one of Thailand’s leading producers of sugar and owns one of the world’s largest sugarcane mills. KTIS produces a wide range of products 100% based on sugarcane by-products, from raw sugar, refined sugar, molasses, bioethanol, biofertilizer, biomass power to sugarcane pulp and packaging.

Based on regional specific considerations in Thailand, several low carbon farming practices have been collaboratively identified from academic literature and on the ground experience from KTIS and VIVE agronomic experts, which support potential GHG reductions on farm.

Mr.Parphan Siriviriyakul, CEO of KTIS Group – “KTIS Group is very pleased to participate in this project, which is in line with our strong intention to become a low-carbon organisation for sustainable growth. KTIS Group has embraced many international standards for effective environmental management systems such as ISO 14001, as well as implementing the standard operating procedures throughout our supply chain from upstream to downstream, thus, receiving the VIVE Claim Level Award and also Best Environment Practice Award from Ministry of Industry (Thailand) for many consecutive years. Participating in this low-carbon agriculture project is another evidence of our unwavering commitment to sustainable sugarcane farming and conscientious environmental care.”

For many large F&B multinationals, the bulk of their supply chain emissions (Scope 3) occur at farm level. With scope 3 emissions (upstream and downstream), being on average 11.4x greater than direct, operational emissions and accounting for as much as 75% of total corporate emissions, proper management is vital to any credible climate strategy – yet over 80% of companies report that just quantifying their scope 3 emissions is difficult . Hence, to meet their publicly available and ambitious Scope 3 reduction targets, large F&B multinationals are now taking an active role in driving emissions down in their own supply chains – by collaborating with supply chain stakeholders to drive emissions down.                                                                                         

For more information please contact: CZ Press Office – rspencer@czarnikow.com

About Suntory

As a global leader in the beverage industry, Suntory Group offers a uniquely diverse portfolio of products, from premium spirits, beer, wine, ready-to-drink alcohol beverages, to brewed teas, bottled water, still and carbonated soft drinks, ready-to-drink coffee and energy drinks, along with health and wellness products. Suntory is home to award-winning Japanese whiskies Yamazaki, Hibiki and Hakushu, as well as iconic American spirits Jim Beam and Maker’s Mark. Suntory also fascinates the taste buds with The Premium Malt’s beer, and owns the exceptional Japanese wine, Tomi, and the world-famous Château Lagrange. Its brand collection includes Sauza Tequila, non-alcoholic favorites Orangina, Lucozade, Ribena, BOSS coffee, Iyemon green tea, Suntory Tennensui water, TEA+ Oolong Tea, V and BRAND’S, as well as popular health and wellness product Sesamin EX.

Founded as a family-owned business in 1899 in Osaka, Japan, Suntory Group has grown into a global company operating throughout the Americas, Europe, Africa, Asia and Oceania, with an annual revenue (excluding excise taxes) of $20.9 billion in 2023. Its 41,511 employees worldwide draw upon the unique blend of Japanese artisanship and global tastes to explore new product categories and markets.

As a corporation sustained by the gifts of nature and water, Suntory Group will always protect the ecosystems that deliver water. Because its ecosystem is the wellspring, not only of its business and the rich experiences the group creates for people’s lives, but also of human life itself. Suntory Group will continue to be a company where everyone is empowered with the freedom and flexibility to innovate. Through all of its corporate pursuits, Suntory seeks to inspire the brilliance of life.

Learn more about Suntory Group, its brands, and its commitment to social responsibility and sustainability at www.suntory.com, on Facebook, X, Instagram, LinkedIn, and YouTube.

About KTIS

KTIS is one of Thailand’s leading producers of sugar and owns one of the world’s largest sugarcane mills. Under its motto of “More than Sugar”, KTIS always strives to harness the full potential of sugarcane, producing a wide range of products 100% based on sugar by-products, from bioethanol, biofertilizer, biomass power to sugarcane pulp and packaging. Fully utilizing the potential of sugarcane is part of KTIS’ commitment to maintaining a sustainable Circular Bioeconomy; this commitment benefits all stakeholders, and the organization believes it is a cornerstone of its success to date.

KTIS’ founder’s key vision of: “Prosperity of sugarcane farmer is the key to KTIS’s stability.” is the core principle that governs its relationship with sugarcane farmers. Every year, KTIS takes care of tens of thousands of sugarcane contract farmers, covering hundreds of thousands of Rais of sugarcane farms.

KTIS has always been at the forefront of pushing for positive changes and innovation in sugarcane farming. More than 30 years ago, KTIS was one of the first groups to promote the drip irrigation system for sugarcane plantations which enabled sugarcane cultivation during the dry season; this transformed Thailand’s sugarcane industry along with greatly enhancing sugarcane farmers’ quality of life.