Responsible Sourcing
Importance
Responsible sourcing is a crucial process that comes with several challenges, such as complexity in supply chain management, traceability, compliance with international standards, and potential cost increases from selecting sustainable raw materials. Furthermore, the business sector faces pressure from modern global trade regulations, particularly the European Union's Carbon Border Adjustment Mechanism (CBAM) and the trend of the Thai government implementing a Carbon Tax mechanism. This means that the greenhouse gas emissions in products (Embedded Emissions) will become a direct financial cost and impact competitiveness.
However, these challenges bring long-term business opportunities to enhance product quality, increase customer confidence, and elevate brand image by responding to market trends that prioritize sustainability, leading to greater market competitiveness. To support this approach, Central Retail has established a sustainable procurement policy, promoting transparency and selecting partners who meet established standards to mitigate regulatory risks and prepare for changes at both the international and national levels.
Management Approach
Central Retail is committed to conducting responsible sourcing by integrating sustainability principles into its procurement processes to ensure that the procurement of products and raw materials aligns with Environmental, Social, and Governance (ESG) standards. Central Retail’s Sustainable Procurement Policy focuses on evaluating and selecting partners while considering environmental impacts, fair labor practices, and respect for human rights, under the oversight of the Supply Chain Sustainability Committee, chaired by a member of the Corporate Governance and Sustainability Committee. Furthermore, emphasis is placed on transparency, traceability, and compliance with international standards by establishing a Supplier Code of Conduct to serve as a guideline for conducting business alongside responsibly. Accordingly, Central Retail’s business partners must cooperate in adhering to the principles of human rights, labor, environment, and good corporate governance.
Product Safety and Quality Assurance Framework
Central Retail is dedicated to ensuring all customers the highest level of food safety through robust quality assurance policies and a comprehensive framework. This commitment is underpinned by the establishment of a Product Safety Committee, the appointment of a Quality Management Representative (QMR) by top management, and a dedicated Quality Assurance Department. To foster sustainable product safety development, Central Retail integrates global best practices, sound scientific principles, and practical operational procedures.
Throughout its supply chain, Central Retail enforces stringent quality control measures. This includes implementing a management system to ensure that all supply chain partners adhere to established quality assurance standards, alongside comprehensive criteria for supplier selection in line with company policies. Within its retail operations, Central Retail has implemented a comprehensive quality and product safety management. This management includes plans for supervision, inspection, and follow-up on the quality and safety of both company-produced and sold products, extending to suppliers whose production and distribution processes occur at the point of sale. Ultimately, Central Retail, in collaboration with its suppliers and retail outlets, continuously strives for product quality improvement. This is achieved by facilitating the transfer of knowledge, technologies, and best practices, ensuring optimal hygiene and sanitation at points of sale, and raising awareness concerning product safety and sustainability.
Central Retail has established clear protocols for the quality assurance, safety, and accuracy of product labels for all post-marketing products. These protocols encompass Central Retail's own brands, direct imports, consignment products, direct-to-store delivery (DSD) items, and every product registered within the workflow system. Procedures include comprehensive assessment of adulteration and contamination, monthly random inspections conducted by external laboratories with ISO/IEC 17025 accreditation, and ongoing legal surveillance of product labels with monthly or seasonal inspections. Furthermore, Central Retail consistently collects randomized test results from its quality assurance processes within both supply chains and farm fields to further ensure product safety. This ensures that Central Retail has a management system to prevent defective products and enabling the system to identify and take appropriate measures on potential defects or deviations of quality before delivery of products.
Controls and Audits of the Quality Management System
Central Retail acknowledges the pivotal role of robust internal control systems in ensuring operational alignment with strategic objectives, legal requirements, and applicable standards. This alignment is systematically achieved through a comprehensive internal audit of the Quality Management System, which encompasses specific audit topics and a structured process. These internal audit procedures are managed by the Internal Audit Department. Key areas of focus include:
- Strategic Planning and Standard Operating Procedures: This involves the implementation of a strategic plan and standard operating procedures for Key Performance Indicator (KPI) monitoring, incorporating corrective actions, and ensuring regular review and updates of regulatory compliance and internal procedures.
- Supplier Quality Assessment and Control: This segment focuses on rigorous pre-vendor audit assessments, factory standard evaluations and quality certification results. It further includes clearly defining vendor responsibilities within contractual agreements, ensuring ESG (Environmental, Social, and Governance) compliance with Central Retail’s supplier code of conduct, and review post vendor evaluation including action plan for under-performance vendor.
- Product Quality Inspection and Control: This covers the execution of comprehensive product assessment plans across all categories. It ensures that product testing criteria align with regulatory requirements, establishes stringent controls over goods receipt at delivery points, involves the screening and retention of product safety and quality certifications, and restricts unauthorized editing or changing of product master data.
- Product Returns and Defects Management: This area emphasizes the implementation of timely corrective actions and reporting for rejected or sub-standard products. It also drives the continuous improvement of service quality through dedicated action plans.
These internal audit procedures are managed by the Internal Audit Department, drawing insights and data from every business unit.
Central Retail had successfully undergone with third-party verification and demonstrated compliance with the requirements of Food Safety System Certification (FSSC) 22000. This certification specifically applies to the scope of its receiving, storage, and distribution operations for chilled and frozen food products. In addition to requirement of GHPs, HACCP and FSSC 22000, the Distribution Centre also holds an ISO 9001:2015 certification for its Quality Management System. This encompasses the provision of receiving, storage, and distribution services for a broad range of products, including dry food, beverage, tobacco products, non-food items, pharmaceuticals, cosmetics, pet food, and clothing products.
Employee Training and Quality Management System Integration
As part of Central Retail's training initiatives, Central Retail offers comprehensive programs designed to equip all relevant employees across various departments with the essential skills and knowledge required for their daily roles, particularly concerning quality management systems (QMS). These training programs cover critical areas such as ISO 9001:2015 requirements and ISO 9001:2015 Internal Auditor certification. This ensures employees fully understand their responsibilities and daily actions, enabling them to contribute effectively to Central Retail's quality objectives and continuous improvement efforts.
Communication Channels
To enhance communication regarding product quality and safety measures, and to improve consumer access to information for raising concerns about defective products, Central Retail has implemented various dedicated communication channels. These channels include:
Contact Centers: Tops contact center 1467, daily 08:00 -22:00
Live Chat Support: Tops https://www.tops.co.th/th, daily 08:00 -22:00
Dedicated Website Pages: Cusserv@tops.co.th, Topsonlinecs@tops.co.th, daily 09:00 - 18:30
Social Media Platforms (Facebook page): Tops Thailand/Tops daily/Tops foodhall/Tops Vita/Tops Care/Pet ‘n Me, daily 09:00 - 21:00
Application (Shopee/ Lazada/ Tiktok shop): Top Online/ Tops Vita/ Pet’n Me daily 9:00-19:30
Central telephone number: 02-831-7300, Monday - Friday (except public holidays) 9:00 – 18:00
Eco-friendly Product
In eco-friendly product procurement, Central Retail prioritizes selecting products that minimize environmental impact, emphasizing the use of sustainable materials such as biodegradable packaging and recycled plastics. It also promotes the use of environmentally certified products. Central Retail supports the circular economy concept by encouraging reuse, repurposing, and recycling to reduce waste and environmental impact. Additionally, it collaborates with environmentally certified partners to promote sustainable sourcing. Central Retail has categorized eco-friendly products into six distinct categories as follows:
Environmentally Friendly Product Categories
| Category | Definition | Example Labels |
|---|---|---|
| Health and Safety Products | Products made without synthetic chemicals and with fairness to farmers and workers |
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| Products Using Sustainable Resources | Products made from natural materials that are renewable or can be replanted |
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| Energy-Efficient Products | Products that consume less energy and are highly efficient |
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| Products Made from Recycled or Biodegradable Materials | Products that use recycled materials or are biodegradable in nature |
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| Products That Reduce Overall Environmental Impact | Products that meet environmental production standards |
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| Products with Emission Data and Carbon Footprint Reduction | Products with Carbon Footprint Labels and Lower Greenhouse Gas Emissions across the Production and Use Lifecycle |
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In addition, Central Retail has launched special product store named "Healthiful" since 2019 to highlight organic and other healthy product lines. In 2024, the Healthiful store has expanded to 86 stores. Products listed under this store are assessed using the following criterias:
- Quality Certification: Food and Drug Administration (FDA) approved for high production quality.
- Consumer Benefits: Promotes health and well-being.
- Alternative Products: Includes organic, plant-based, vegan, digestive health, high-protein, and ketogenic options.
- Health Restrictions: Products for diabetic patients, gluten-free, MSG-free, preservative-free, cholesterol-free, dairy-free, lactose-free, low-sodium, low-fat, and low-sugar products.
Community and Local Products
Central Retail is committed to supporting local communities and domestic producers while fostering sustainable local economic growth. Sourcing products from communities and local suppliers is a key strategy that not only creates economic opportunities for farmers and small-scale producers but also reduces environmental impact by minimizing long-distance transportation, lowering greenhouse gas emissions, and promoting efficient resource utilization.
To achieve tangible results, Central Retail launched the “Jing Jai Farmers’ Market” since 2018 as a platform for showcasing and selling local produces, OTOP items, and community-made goods developed in collaboration with Central Retail. The core strategy of Jing Jai Farmers’ Market focuses on creating a fair platform that allows farmers and small-to-medium producers to sell directly to customers, without the middlemen, ensuring fair pricing, and fostering long-term sustainability for producers. The initiative also emphasizes product quality and production standards by providing support and guidance to improve product safety, the use of environmentally friendly raw materials, and sustainable production practices. Additionally, Jing Jai Farmers’ Market serves as a model for reducing plastic usage by encouraging biodegradable natural packaging and promoting reusable shopping bags to minimize plastic waste.
Furthermore, Central Retail facilitates direct communication between producers and consumers, allowing communities and farmers to engage with customers, share information about product origins, production methods, and standards, while also gathering feedback for product improvement. Central Retail also plans to expand the Jing Jai Farmers’ Market network nationwide to enhance economic opportunities and community development across the country. Currently, there are a total of 32 Jing Jai Farmers’ Market branches nationwide, offering more than 4,000 products, including fresh fruits and vegetables, processed agricultural goods, handicrafts, and local products. Over 10,522 farmers and small-scale producers have gained access to a fair market, generating more than 250 million baht to the local communities. This platform provides opportunities to increase their income sustainably. The initiative has received positive feedback from both consumers and participating farmers, contributing to better quality of life, stable income, and stronger local economies nationwide.
Jing Jai Farmers' Market
Biodiversity Conservation
Central Retail recognizes the importance of biodiversity in maintaining ecological balance and is committed to the conservation of biodiversity and forested areas. Central Retail aims to achieve No Net Loss (NNL) of biodiversity, create a Net Positive Impact (NPI), and reach the goal of No Net Deforestation to ensure responsible operations.
To ensure this, Central Retail conducts comprehensive biodiversity risk assessments, monitors results, and implements remediation activities across the entire supply chain using the World Wildlife Fund’s Biodiversity Risk Filter Tool (WWF BRF). These assessments help identify and mitigate potential biodiversity impacts. Additionally, Central Retail collaborates with key stakeholders, including partners, business allies, and local communities, to initiate conservation and biodiversity restoration projects.
Central Retail works with organizations such as WWF Thailand, the Thai Organic Agriculture Development Project, and Thai Com Co., Ltd. to carry out initiatives that promote environmental sustainability, including forest restoration, sustainable agricultural practices, and the development of biodiversity strategies aligned with international standards.
| Biodiversity Risk Assessment | |
|---|---|
| Scoping the Assessment |
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| Collecting Location-specific Company and Supply Chain Data |
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| Assessing Biodiversity-related Risks |
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| Aggregating Biodiversity Risks Impacting Business Operations |
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Project Highlights
Bua Yai Organic Agriculture Community Enterprise, Na Noi District, Nan Province
Central Retail conducts responsible sourcing of agricultural products by supporting the Bua Yai Organic Agriculture Community Enterprise in Na Noi District, Nan Province, with the goal of reducing environmental impacts, restoring ecosystems, and conserving biodiversity throughout the supply chain. In 2025, Central Retail collaborated with the National Science and Technology Development Agency (NSTDA), Rajamangala University of Technology Lanna, Office of Provincial Commercial Affairs, the Utokapat Foundation, and the Community Development Department to promote the transition of agricultural land into organic farming and agroforestry systems. This involves planting perennial trees integrated with agricultural crops to reduce soil degradation, restore watershed forests, and increase carbon dioxide absorption within the ecosystem. The project also prioritizes sustainable water resource management by constructing weirs, small-scale water reservoirs, and water distribution systems for organic plots to address water scarcity and mitigate drought risks. This enables more than 50 households to access water sources, maintain continuous production, and reduce the impacts of climate change.
Hug The Earth Project
In collaboration with the Thai Chamber of Commerce, public and private sector partners, Central Retail has launched the ‘Hug The Earth’ project to promote responsible sourcing by selecting and gathering products with environmental or eco-friendly labels from business partners into a single retail space under a unified symbol. This enables consumers to access and purchase environmentally friendly products conveniently and with confidence. This project reflects Central Retail's role in utilizing the power of retail and wholesale as a mechanism to drive a sustainable supply chain. It not only provides convenience to consumers but also sends a positive signal to manufacturers and partners to prioritize environmentally friendly production processes. This aligns with the BCG Economy (Bio-Circular-Green Economy) concept and the transition toward a Nature Positive Economy. As a result, Central Retail is the first retail organization in Thailand to pilot the ‘Hug The Earth’ project within its retail stores, including Thaiwatsadu, Power Buy, Central Department Store, Robinson Department Store, Tops, GO Wholesale, B2S, OfficeMate, Supersports, and Central Marketing Group (CMG). Central Retail is also scaling this success through collaboration with its network to establish the purchase of eco-labeled products as the new standard for the Thai retail sector
Performance Summary 2024
Healthy &Safe Products
Significant Product Categories Assessed for Health and Safety Impact
Sales of Healthiful Products (Baht)
Sales of OTOP Products (Baht)
