IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.
PS1: Assessment and Management of Environmental and Social Risks and Impacts
E&S Policy:
MRDIYT has developed its corporate Environmental, Social and Governance (ESG) policy and Business Code of Conduct (CoC) applicable to all the company’s operations. The ESG policy and CoC include commitments relating to sustainable environmental management, compliance with national and international standards, communication and engagement with stakeholders.
Identification of E&S Risks and Impacts Assessment:
The company has a corporate risk management policy and procedure which identifies and manages E&S risks and impacts associated with its operations in line with applicable national standards and regulatory requirements. According to the national legislation in Thailand, the company is not required to undertake an Environmental Impact Assessment (EIA) study for the existing assets under the project.
Risk identification and screening procedure for selecting new project sites including warehouses have been designed to align with regulatory requirements including legal compliance.
As part of ESAP 1, the company will develop a screening procedure and the standard operating procedure for conducting E&S due diligence of potential investments including major expansion where E&S due diligence is relevant and acquisition projects against IFC Performance Standards (PS). As part of the screening procedure, the company will assess the applicability of all the relevant PSs for all the future developments to comply with PS requirements.
E&S Management System and Program:
The company has procedures related to E&S management including corporate ESG policy, risk assessment and identification, emergency response procedures (ERP), health and safety manual, and internal audit and monitoring mechanisms covering all the logistics and shop operations. The company also has a supplier management system including supplier assessment and review mechanism. The company’s ESMS is generally in line with IFC PS requirements, and needs enhancing E&S management capacity following ESAPs. Corporate policies/procedures are publicly accessible through corporate website (https://investor.mrdiy.co.th/en/corporate-governance/all-corporate-policies).
Organizational Capacity and Competency:
The company has several departments to oversee various E&S aspects. The company has corporate ESG department in charge of ESG aspect including resource efficiency and management. Corporate safety department manages occupational health and safety (OHS) at the head office, logistics and shop operations in cooperation with respective site operation managers. HR department develops and conducts trainings on OHS and safety procedures to align with company’s standard operating procedures (SOPs), CoC and national regulations and internal audit department performs supervision on compliance of the SOPs and other requirements. At each shop, the store manager is in charge of safety operations and fire prevention. As per ESAP 2, the company will nominate a corporate level E&S coordinator, to oversee and coordinate the implementation of the corporate ESG policy and ESMS.
Emergency Preparedness and Response:
The company has a corporate policy on business continuity management, crisis management plan and developed an ERP applicable to each logistics asset and shop operations, including responsibilities and duties defined for staff. It consists of a standard operating procedure in case of fire, civil unrest, and natural disaster. The safety department provides emergency response trainings at each shop and logistic asset operations together with managers in charge at each site operations.
Monitoring and Review:
MRDIYT has established sustainability objectives and corporate key performance indicators (KPIs) to continuously monitor company’s E&S performances including accident record, energy efficiency, environmental management etc. The company has also developed a regulatory compliance checklist to ensure its business operations comply with both national and international laws and regulations. Monthly summary reports are prepared and presented during management meetings to review performance and implements additional measures as needed based on the review/feedback.
PS2: Labor and Working Conditions
As of June 2025, MRDIYT employs approximately 11,500 individuals directly, with about 50% women. In addition, MRDIYT employs third-party agencies as discussed below.
Human Resources Policies and Procedures:
The company has corporate HR policies, procedures and an employee handbook covering recruitment, working days and hours, holidays, overtime and payments, leave, worker grievance process, disciplinary action, welfare and benefit, safety and reporting, termination of employment etc. As part of ESAP 3, the company will update its HR policies and procedures in line with IFC PS2 to include clear statements for workers' freedom of association.
Working Conditions and Terms of Employment:
All employees are provided with a contract. These contracts include the conditions for employment, working days, hours, remuneration and allowance, holiday and leave, disciplinary action, termination of employment etc. According to the company’s HR regulations, all employees exceed the minimum age of 18 years. Working hours are recorded based on the information technology-based time recording system. There is no accommodation provided for the employees. All the HR related policies and Standard Operating Procedures (SOPs) are available through the company’s intranet.
Workers’ Organization and Retrenchment:
MRDIYT does not restrict workers from freedom of association. There is no labor union representing employees and no collective bargaining agreement. There is no retrenchment occurred in the past three years nor planned and no major labor disputes reported.
Non-discrimination and Equal Opportunity:
MRDIYT has a human rights approach as part of the corporate CoC ensuring that all the corporate business operations adhere with relevant national regulations and international standards including elimination of child labor and forced labor, anti-discrimination, sexual harassment prevention, gender-based violence (GBV) and equal opportunities.
Worker Grievance Mechanism:
The company has established a formal grievance mechanism and whistle blowing policy defining the process for receiving and addressing complaints, and channels for reporting including specific e-mail, and suggestion box for anonymous reporting applicable to all the employees including contractors. Internal audit department oversees receiving and handling complaints with support from HR department together with legal and company secretary team and respective managers as needed.
Occupational Health and Safety:
MRDIYT has a corporate risk management policy and developed several safety procedures for employees and contractors. The company has developed a hazard identification and assessment process for OHS risk identification and management, and accident investigation and reporting procedure to determine and implement preventive and control measures including warehouse and transportation operations.
MRDIYT has a corporate OHS committee and conducts monthly meetings to monitor safety performance. The company provides various training programs among employees and contractors including onboarding trainings for new staff, firefighting training, and fire evacuation. There are no fatalities have been reported in the past two years. The company’s lost time injury frequency rate (LTIFR) is lower than the international industry benchmarks.
Workers Engaged by Third Parties:
The company employs third party agencies to perform activities including store renovation and setting up, security, as well as supporting delivery services. MRDIYT has a business partner, CoC applicable to all the contractors requiring compliance with corporate business ethics, relevant laws and environmental and social responsibilities. The corporate safety department, HR department and other relevant departments are overseeing contractor operations covering safety and legal compliance.
Supply Chain:
The company has a supply chain management policy as part of business partner CoC covering respect for human rights including no child and forced labor, equal treatment including prohibition of sexual harassment and physical/verbal abuse, non-discrimination as well as occupational health and safety, and environmental considerations covering the entire process of product procurement and supplier engagement.
The selection of suppliers and business partners are made in consideration of environmental, social, and governance factors to mitigate risks associated with potential negative impacts. MRDIYT conducts internal audit assessments of contractors and suppliers to confirm ongoing compliance with these requirements and outline measures for remediation or corrective action in cases of non-compliance.
PS3: Resource Efficiency and Pollution Prevention
Resource Efficiency, Greenhouse Gas (GHG) and Air Emissions:
MRDIYT assesses its operations to enhance energy and resource efficiency. Some of the resource efficiency initiatives implemented for logistics facility and shop operations include installation of roof top solar panels, light emitting diode (LED) bulbs, and recycling and reducing the use of materials. The company started to introduce electric vehicles (EV) for their logistics operations. Total greenhouse gas (GHG) emissions in 2024 was about 5,000 tCO2e (scope 1 and 2). Electricity is sourced from the national grid for the logistic facility and all the shop operations under the project. No major air pollutant emission is expected from the company’s operations.
Water and Wastewater:
For the logistics facility and shop operations, water is basically supplied by the public water supply system. The water consumption from whole corporate operations was reported to be around 30,000 m3 in 2024. Wastewater from shops and logistics operations are discharged to the public sewage system.
Waste and Hazardous Material Management:
Each shop and logistics managers are in charge of general and hazardous waste management from their operations in line with local regulations including a system of separate collection, storage and disposal. All the waste is collected for disposal by an authorized third-party agency specialized in each type of waste. Hazardous materials are expected to be limited to lighters and gas cartridges, which are stored with small quantities segregated with fire-fighting measures.
MRDIYT has not disposed of any EV batteries nor solar panels yet as they are still in good condition, however the Company will identify a licensed contractor for the disposal of EV batteries and solar cells according to local requirements. As mentioned in ESAP 4, MRDIYT will develop a waste management plan including EV battery and solar cells that comply with local environmental legislation and PS3.
PS4: Community Health, Safety and Security
Life and Fire Safety Management:
Project logistics assets have fire safety certificates indicating that the fire protection system has been approved by local authorities and being regularly inspected. The company installs fire alarming system for the warehouse facilities including smoke detectors, fire hose reel system with pumps, fire extinguishers, emergency exits and sprinklers in compliance with local regulations. Each retail store has emergency exits, fire extinguishers and alarms following local regulations.
The company has a corporate fire prevention plan including inspection plan, training plan, monthly safety checklist, procedure in case of fire incident with duties and responsibilities. Trainings for fire safety management have been implemented for its logistics and shop operations with support from the local fire authorities.
Community safety management:
The company has a transportation team with around 100 drivers and contracted third party transportation fleet operators to support the delivery services. There have been no major traffic incidents reported in the past three years. The company has several procedures/requirements related to transportation safety including predeparture check, maintenance recordings and global positioning system (GPS) monitoring etc. The company also made a standard agreement with third party drivers regarding compliance with the company’s policy and regulation on safe driving.
Security Personnel:
Some company facilities, including the warehouse premises, are protected using contracted unarmed security. The company regularly undertakes internal briefings and provides training for the security personnel, including emergency responses for their security staff at logistics operations.
