Water Management

The Company has identified "water" as a key sustainability issue for many hotels and resorts located near water sources and communities. This has led the company to always consider the impact on natural water sources and surrounding areas. As a result, the Company has developed strategies, policies, and guidelines for water resource management to ensure that hotels and resorts use water resources as efficiently as possible, while mitigate any risks of water scarcity that may arise

Goal

The Company's hotels and resorts aim to reduce wastewater and water extraction, striving to maintain the highest standards of water quality and service for guests and employees, free from complaints from guests and the community. Additionally, the Company has set a goal to reduce overall water consumption by 5% in 2024, equivalent to 28,718 cubic meters.

Goal to Reduce Water withdrawal from Other SourcesGoal to Reduce Water withdrawal from Other Sources

	Goal to Reduce Water withdrawal from Other Sources (%)
Water withdrawal	1% from previous year

Note: This target applies to 4 hotels and resorts in Thailand and CROSSROADS.

Quantitative Water Consumption Reduction Goal

Water consumption 2022	2023 Goal (1% reduction)	Water consumption 2023	2024 Goal (5% reduction)
570,198 cubic meters	564,496 cubic meters	574,350 cubic meters	545,633 cubic meters

Note: This target applies to 4 hotels and resorts in Thailand and CROSSROADS.

Opportunities, Challenges and Risks

Careful and efficient water management planning can ensure that the Company's hotels and resorts have a continuous water supply for business operations throughout the year, thereby reducing risks and impacts such as temporary service shutdowns due to water shortages. Additionally, it can foster good relationships with the community by helping conserve water resources and collaborating with surrounding communities to strengthen the efforts. This approach also enhances the hotel's image regarding water resource usage.

The Company conducts analysis of areas that pose risk of water stress. If the water management in hotels and resorts located in these areas is inefficient, it may lead to water shortages during the dry season or cause surrounding areas to lack sufficient water for consumption. This could directly impact business operations, potentially causing temporary service shutdowns. Additionally, hotels near coastal tourist attractions may need to share limited freshwater resources with local communities. Excessive water use could strain these water sources, leading to community water shortages and possibly violating laws and regulations.

To address this issue, the Company has developed a drought response plan, anticipating prolonged drought periods. A special task force has been established to inspect water storage systems, and efforts are underway to improve these systems to prevent water shortages.

Water Resource Management Strategy

The Company has defined a water resource management strategy focusing on reducing and relying less on water extraction from other sources, as well as cutting down on unnecessary water use. Additionally, the Company supports investment in efficient clean water filtration technologies and promotes water-saving measures, such as sensor-operated faucets. Furthermore, the Company collaborates with communities surrounding its hotels and resorts to help conserve and restore water sources, ensuring water availability throughout the year. The Company also has a policy against discharging wastewater into the sea or public areas and mandates the water treatment and reuse of water for watering plants within hotel and resort premises.

Management
The Company is committed to managing water resources as efficiently as possible to ensure sustainability, prevent risks, and protect the Company’s reputation and revenue. This includes adhering to nationally and internationally recognized environmental management standards. The Company regularly inspects water systems and monitors wastewater quality according to legal standards, maintains wastewater treatment systems to ensure efficiency, and obtains wastewater quality certification from independent external agencies.

Moreover, the Company hires external independent agencies to inspect water quality and provide recommendations for maintaining water standards. Progress in water resource management is reported periodically to the Corporate Governance and Sustainable Development Committee, as well as the Board of Directors, to keep them informed and allow them to provide valuable management advice. The Company also trains its staffs and encourages guests to use water responsibly, setting guidelines for water conservation.

Water Conservation Guidelines

The Company emphasizes the importance of water resources, recognizing that water is a crucial factor in the service of its hotels and resorts. Given the global challenges of climate change which causes droughts, the Company is committed to promoting water conservation among staffs and guests, both indoors and outdoors, in line with the organization’s water-saving policy and water resource risk management. The Company has established the following water conservation guidelines:

1. Ensure water is not left running in areas such as kitchens, gardens, or bathrooms.
2. Regularly check for leaks in water pipes, faucets, joints, pumps, and other points.
3. Wash dishes in a basin, removing food scraps before washing and limiting water use to no more than two rinses.
4. Wash fruits and vegetables in a container rather than under running water.
5. Avoid leaving water running when washing cars or motorcycles, use water-saving nozzles, and collect water in buckets.
6. Use a glass of water when brushing teeth and rinsing.
7. Turn off the shower while soaping up during bathing.
8. Wash full loads of laundry and avoid using the washing machine for small loads; wash small items by hand instead.
9. Use water-saving toilets and sensor-operated faucets.

Participation in Water Management

The Company promotes sustainable water resource management, conservation, and restoration of water sources, such as participating in reforestation projects like the “Plook Pa Duay Plai New” at Singha Park, Chiang Rai. Additionally, the Company has helped install water filtration systems in schools on Koh Samui to ensure clean drinking water for teachers and students.

Reuse and Recycling of Water Resources

In addition to water conservation measures, the Company has invested in systematic wastewater treatment infrastructure. Treated water is reused within the hotel and resort premises, partly to save water resources and reduce raw water purchase costs. Treated water is used for watering plants in the gardens around the hotel and resort areas.

Wastewater Management Guidelines

The Company has a policy against discharging wastewater into the sea or public water sources. Hotels and resorts under the Company’s management treat wastewater which aligned with the standard, along with regular water quality measurements. The treated water is then reused within the hotel and resort premises.

For more detailed information, please refer to the 2023 Sustainability Report, specifically the sections on water and wastewater management, and the Environmental Dimension Appendix available at https://investor.shotelsresorts.com/th/downloads/sd-reports