Material Issues for Sustainability

Material issues, Challenges, Opportunities and Potential Impacts

Central Pattana used the outcomes of the materiality process to develop our five-year Sustainable Development Strategies 2021-2025 as well as aligned long-term social and environmental targets with the UN SDGs. Sustainability performance indicators are set at corporate, department and division levels and progress is tracked through ongoing performance monitoring and Corporate Governance and Sustainable Development Committee meetings as well as through conducting the Impact Valuation studies.

Mega Trends

• Digital disruption

• Consumer lifestyle changes

• Shift in demographics and the boom of silver age

• Globalization and urbanization

• Slow and volatile economic

• Intensified competition

Emerging Trends from COVID-19 Outbreak

• Rapid digitalization

• New normal habits result homebody economy

• Instant demand and ultra-convenience

• Conscious spending

• Health and hygiene

• Brand value with social equity purpose and sustainable movement loyalty

• Organization resilience

• Business model reform

Challenges / Opportunities

Changing consumer behavior

Hyper Connected Customers are less patient than before and want convenience and nothing less than the best. Experience-seeking and more environmentally conscious, these consumers put great emphasis on well-being, health and hygiene and privacy and data protection (Personal Data Protection Act: PDPA) and trust in services recommended by experts or people they deem to be trustworthy.

Resilience to change (emerging risk)

In response to COVID-19, the Company had to adapt quickly to changing circumstances including in terms of prevention, preparedness, planning and in some cases closures as well as in other areas such as financial and liquidity management, restructuring of teams and management, human resource management and adoption of technologies to maintain business continuity and competitiveness.

Maintaining business continuity in the face of social and environmental threats

From climate change and environmental problems such as droughts, floods, storms, dust, smoke and PM2.5 dust particles to civic movements and political unrest, these external factors affect not only customers’ lives but the entire business sector as well as how we manage our resources.

Sustainability Targets

SDGS Targets for 2021-2025
Economic, Social and Community Impact

8.3.1
Support productive activities, job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises.

  • Maintain an average annual growth rate of 10%.
  • Allocate 10% of total space for community use.
  • 10% of suppliers are small and local businesses.
  • Achieve 80% employee engagement score.

10.1.1
Promote and support growth in household spending of the bottom 40 per cent of the population at a rate higher than the national average.

11.7.1
Provide access to safe, inclusive and accessible, green and public spaces.

Environment Impact

6.a.1
Support to developing water- and sanitation-related activities and programs, including water harvesting, water efficiency, wastewater treatment, recycling and reuse technologies.

  • Reduce energy consumption by 20% (compared to 2015).
  • Reduce Scope 2 GHG emissions by 20% (compared to 2015).
  • Increase the use of recycled water to 20% of total water consumption across shopping centers.
  • Reduce waste sent to landfill by 50% of total waste.

7.2.1 & 7.3.1
Increase the share of renewable energy in the energy mix and improvement in energy efficiency.

12.3.1 & 12.5.1
Halve per capita global food waste at the retail and consumer levels. Substantially reduce waste generation through prevention, reduction, recycling and reuse.

13.2.2
Integrate climate change measures into national policies, strategies and planning.