MDF
Dominant source:Biomass
| Energy type | Share (%) |
|---|---|
| Biomass | 71.61% |
| Solar rooftop | 1.45% |
| Grid non-renewable | 24.02% |
| Non-renewable | 2.92% |
FOREST
Sustaining the Environment Through Responsible Resource Management
Climate Change and Net Zero
Vanachai recognizes the urgency of climate change and our long-term impacts on the global economy, society, and the environment. The Company is therefore committed to advancing a systematic, integrated, and continuous approach to climate change and carbon management, in order to support sustainable business growth while fulfilling our responsibility to the planet and future generations.
Wood Fiber: wood-based raw materials bind CO2
94.7% of material consumption consists of renewables1
5.3% Others Raw Materials carefully managed for lower impact2
Scope 1
Emissions from own energy Generation3 31,037 tCO2e
Purchased
raw materials
Water usage in production facilities 0.82 M3/ton of production
Scope 2
Emissions from purchased energy4 142,262 tCO2e
Vanachai
Process
Wastewater from production recycling/reuse rate 82.1%
Scope 3
Indirect emissions fromour value chain5
612,076 tCO2e
Transport to customers
48,469 tCO2e
Solid waste from production (excluding wood) 0.08%
Scope 4
Avoided emissions6
36,601.56 tCO2e
- Avoided emissions from renewable energy projects
- Full calculation to be disclosed in the next reporting cycle
Customers and End Markets
Energy Consumption
from renewable sources
71.6%
Direct Energy demand:
119.4 MW avg., supported by 26.72 MWp renewable capacity
End-of-life (30–40years7)
Base assumption:35 years for indoor MDF applications
Climate, Raw Materials and Energy Use/Impact Flow
Energy Use by Product Group
Product-first dashboard showing the energy mix used by each wood-based product group (%)
Energy Type Overview
- Biomass
- 70.2%
- Biogenic renewable energy
- Solar rooftop
- 1.4%
- Renewable electricity from rooftop solar
- Grid non-renewable
- 22.2%
- Electricity from grid sources
- Non-renewable
- 6.2%
- Fossil / other non-renewable energy
Particleboard
Dominant source:Biomass
| Energy type | Share (%) |
|---|---|
| Biomass | 77.20% |
| Solar rooftop | 2.25% |
| Grid non-renewable | 15.26% |
| Non-renewable | 5.29% |
Melamine Faced Panels
Dominant source:Biomass
| Energy type | Share (%) |
|---|---|
| Biomass | 92.48% |
| Solar rooftop | 0.00% |
| Grid non-renewable | 2.22% |
| Non-renewable | 5.30% |
Flooring
Dominant source:Biomass
| Energy type | Share (%) |
|---|---|
| Biomass | 64.85% |
| Solar rooftop | 0.00% |
| Grid non-renewable | 29.45% |
| Non-renewable | 5.70% |
OSB
Dominant source:Biomass
| Energy type | Share (%) |
|---|---|
| Biomass | 69.43% |
| Solar rooftop | 0.00% |
| Grid non-renewable | 28.65% |
| Non-renewable | 1.92% |
Others
Dominant source:Grid non-renewable
| Energy type | Share (%) |
|---|---|
| Biomass | 28.00% |
| Solar rooftop | 0.00% |
| Grid non-renewable | 45.41% |
| Non-renewable | 26.59% |
GHG Emissions and Decarbonization
Vanachai’s decarbonization pathway focuses on reducing greenhouse gas emissions at source while strengthening carbon management readiness across the value chain.
The Company drives emissions reduction through responsible raw material sourcing, efficient production, renewable and low-carbon energy, low-carbon logistics, and circular use of wood residues and production waste.
At the same time, Vanachai is enhancing its carbon management system through reliable GHG data, plant-level performance tracking, Scope 3 engagement, product life-cycle information, and integration with enterprise risk management. These efforts support future customer expectations, regulatory requirements, investor-grade disclosure, and Vanachai’s long-term transition toward Net Zero.
Emission Hotspots
Scope 3:
Raw Material Sourcing
Scope 1 / 3:
Wood Preparation and Resin Inputs
Scope 1:
Thermal Energy and Process Fuel
Scope 2:
Purchased Electricity
Scope 1 / 3:
Internal Logistics
Scope 3:
Distribution, Use and End-Of-Life
Decarbonization Levers
ResponsibleWoodSourcing
MaterialEfficiency
EnergyEfficiency
Renewable Electricity
Low-Carbon Logistics
CircularProducts
2
Wood preparation
3
Drying and pressing
5
Warehouse and logistics
6
Product useand circularity
4
Finishing and packaging
1
Forest and responsible sourcing
Renewable Energy and Energy Efficiency
Energy Transition Roadmap
Strengthening energy efficiency, renewable energy use, and low-carbon manufacturing through measurable actions.
Total energy consumption
4,839,994 GJ
Renewable electricity and heat energy
3,466,655 GJ
Renewable energy share
71.6 %
Energy intensity
3.57 GJ/tonne
Renewable project capacity
26.723 MWp/MW
Avoided emissions from renewable projects:
36,601.56
tCO2e/year
Action Plan
1. SHORT TERM(2025–2029)
- Improve process and utilities efficiency
- Strengthen boiler, steam, compressor and motor efficiency
- Develop energy dashboard and sub-metering by factory
- Track energy intensity by production line
- Expand solar rooftop where feasible
- Train employees on practical energy saving
2. MEDIUM TERM(2030–2037)
- Integrate energy KPIs into ERM and plant performance
- Expand renewable-energy capacity and low-carbon electricity options
- Optimize biomass fuel quality and heat recovery
- Improve assurance readiness of energy data
- Link energy projects to the GHG reduction plan
3. LONG TERM(2038–2050)
- Secure long-term low-carbon energy resilience
- Maintain the energy intensity reduction pathway
- Maximize renewable energy across key factories
- Consider Green Tariff and future low-carbon procurement
- Support Net Zero 2050 pathway and climate competitiveness
Circular Economy and Resources Efficiency
Embedding circular resource use and waste control into daily operations
Vanachai advances circular and resource-responsible manufacturing by maximizing renewable wood-based materials, reducing waste, and reusing wood residues in production and biomass energy.
In 2025, 94.72% of total materials used were renewable and recyclable wood-based materials. The Group also managed 41,538 tonnes of products and packaging through reuse, recycling, or circular applications, maintained zero environmental fines, and reduced GHG emissions by 27,305.71 tCO₂e/year through biomass energy use.
Maximize resources | Reduce waste | Create sustainable value
1
2
3
4
5
6
7
8
1. Responsible Wood Sourcing
Pararubber wood, branches, slabs, and sawmill by-products are sourced legally from economic plantations and processing sources.
2. Full Resource Utilization
Wood residues and agricultural by-products are used as core inputs for wood-based products, reducing dependence on virgin resources.
3. Efficient Manufacturing
Process optimization, cutting techniques, and quality control help reduce material loss and improve production yield.
4. Beneficial Reuse
Scrap wood and sawdust are returned to production or used as biomass fuel, reducing waste and fossil fuel dependence.
5. Packaging Circularity
Non-conforming products are repurposed as padding, wrapping, and logistics materials.
6. Resource-Efficient Inputs
Adhesives and treatment substances are optimized to reduce excess use while meeting product quality requirements.
7. Renewable Energy
Wood residues support biomass energy generation for operations, helping reduce greenhouse gas emissions.
8. Circular Product Value
Wood-based products create lasting value and support a circular bioeconomy across furniture, construction, and interior applications.
26,000,000 Trees/year
Beyond planting numbers, this is measurable forest conservation: natural trees preserved for the planet and future generations.
Reducing CO₂ emissions from combustion.
Vanachai Grows with Forests, Communities, and the Future.
Vanachai is committed to forest stewardship and responsible natural resource use. With over 70,400 hectares or the planting of 26 million trees of managed forest areas, the Group supports tree rotation, forest restoration, annual tree planting, forest fire prevention, and responsible wood sourcing. These actions help reduce pressure on natural forests, protect biodiversity, strengthen local livelihoods, and support the Group’s circular and resource-responsible manufacturing strategy.
Waste, Wastewater, and Pollution Prevention
Reducing waste and pollution at source through circular resource use, wastewater reuse, emissions control, and responsible disposal.
1
Identify Sources
Waste, wastewater, and pollution are identified by production processes and operational risk.
View moreView less
- Waste
- Wastewater
- Pollutions
- Identify sources from all production processes
- Assess environmental impacts and risks
- Map key waste, wastewater and pollution streams
2
Prevent at Source
Improve process efficiency, raw material control, product design, and packaging use.
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- Efficiency
- Material Control
- Product Design
- Improve process and equipment efficiency
- Control raw materials and reduce defects
- Design products for durability, recyclability and less waste
- Reduce resource use and packaging
3
Reuse, Recycle and Recover
Reuse nonconforming products, recycle non-hazardous waste, and recover energy from suitable waste.
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- Reuse
- Recycle
- Energy Recovery
- Reuse nonconforming products and materials
- Recycle non-hazardous waste to maximize value
- Recover energy from suitable waste (e.g., biomass)
- Minimize waste to landfill
4
Treat and Control
Treat wastewater to legal standards and manage waste responsibly. Control air pollutions at source.
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- Wastewater Treatment
- Waste Management
- Pollution Control
- Treat wastewater to meet legal standards and promote reuse
- Segregate waste by type and manage through appropriate methods
- Control and reduce emissions of NOx, CO, TSP, VOCs, ODS and SOx
5
Monitor and Improve
Track data, review performance, and improve controls through sustainability and factory teams.
View moreView less
- Data Tracking
- Performance Review
- Continuous Improvement
- Track key environmental data and indicators
- Review performance against targets
- Implement improvement actions and share learnings
- Engage teams for continuous improvement
Our Impact
Reduce Impact
Minimize waste, wastewater and pollution across operations.
Use Resources Wisely
Maximize reuse, recycling, energy recovery and resource efficiency.
Protect Environment
Ensure clean water, clean air and healthy ecosystems.
Create Value Together
Build long-term value for business, communities and stakeholders.
Zero Waste in the Production Process
A closed-loop system for circular and low-impact manufacturing
Vanachai applies a zero-waste production approach by maximizing resource use at every stage. Raw materials are sourced responsibly, and all production residues, water and materials are kept in circulation through the 6R principles—Reduce, Reuse, Recycle, Reject, Repair and Recover—creating value while reducing environmental impact.
Zero WasteZero non-hazardous waste to landfill
Circular UseResources are reused, recycled and recovered
Resource EfficiencyLower raw material use and operating cost
Sustainable ValueEnvironmental, social and economic value
Production Process
Efficient manufacturing with resource optimization
Wastewater Reuse
Wastewater is treated and reused to moisten raw materials and logs whenever feasible
Quality Control
Off-specification materials are systematically reintroduced into production
Zero Waste Production
Keep resources
in circulation
Closed-loop use of wood, water, adhesives and chemicals
Wood scraps, bark, sawdust and other recoverable materials returned to the system
Products
High-quality wood-based products for customers
Resource Reintegration& Energy Recovery
Wood scraps, bark and sawdust are used as substitute raw materials or biomass fuel for energy production
Raw Material Preparation
Logs, boards and particles prepared for production
Zero Waste Production
Keep resources in circulation.
Closed-loop use of wood, water, adhesives and chemicals.
Wood scraps, bark, sawdust and other recoverable materials returned to the system.
-
Production Process
Efficient manufacturing with resource optimization
-
Wastewater Reuse
Wastewater is treated and reused to moisten raw materials and logs whenever feasible
-
Quality Control
Off-specification materials are systematically reintroduced into production
-
Products
High-quality wood-based products for customers
-
Resource Reintegration & Energy Recovery
Wood scraps, bark and sawdust are used as substitute raw materials or biomass fuel for energy production
-
Raw Material Preparation
Logs, boards and particles prepared for production
Input Sources
Plantation Wood
Responsibly managed plantation-grown wood
Community Wood Scraps
Branches, roots and community wood scraps
Furniture Factory Residues
Wood residues from furniture factories
End-of-Life Rubber Trees
Utilizing end-of-life rubber trees
All raw materials are transformed into value-added products.
6R Principles in Production
Recycle
Reintegrate wood residues, bark, sawdust and recoverable materials into manufacturing or other value-added uses.
Reject
Avoid or reduce materials harmful to mankind and the environment, and promote safer, environmentally friendly alternatives.
Reduce
Improve raw material efficiency, minimize production defects, reduce disposable materials, and optimize product and packaging design to lower waste generation at source.
Repair
Maintain and repair machinery, equipment and reusable materials to extend useful life, reduce replacement needs and improve operational efficiency.
Reuse
Reuse off-spec boards, nonconforming products, cardboard boxes, office supplies and suitable production materials as pallets, packaging or support materials.
Recover
Use suitable wood scraps, bark and wood dust as biomass fuel, reducing disposal burden and supporting energy efficiency.
Key Benefits for Investors and The Business
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Lower Environmental Impact: Reduce emissions, pollution and resource depletion.
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Cost Efficiency: Lower raw material costs and waste disposal expenses.
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Operational Resilience: Efficient resource use and stable production processes.
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Regulatory Compliance: Align with environmental laws and requirements.
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Stronger Reputation and Value Creation: Enhance investor confidence and long-term sustainable economic value.
Biodiversity Pioneer Project
Site-level Biodiversity Baseline
| Flora Group | Species Recorded |
|---|---|
| Agricultural area plants | 41 |
| Community area plants | 39 |
| Nearby forest area plants | 30 |
| Other plants | 16 |
| Flora species richness: Study Area | 126 |
| Within Project area | 61 |
| Fauna Group | Species Recorded |
|---|---|
| Mammals | 9 |
| Birds | 73 |
| Reptiles | 17 |
| Amphibians | 10 |
| Wildlife species recorded: Study Area | 109 |
| Within Project area | 59 |
