Climate Change
Climate Change at a Glance
MEGA manages climate change through Board oversight, environmental management, renewable energy, emissions monitoring, operational efficiency and climate-related risk consideration. The figures below provide a concise view of MEGA’s latest climate and energy performance.
- Total energy consumption within the organization
- Non-renewable fuel consumed
- Purchased electricity
- Renewable energy consumed
- Total GHG emissions, Scope 1 + 2 + 3
- Scope 1 GHG emissions
- Scope 2 GHG emissions
- Scope 3 GHG emissions disclosed
- Solar generation in 2025
- Solar CO2e avoided in 2025
- Cumulative solar generation, 2018–2025
- Cumulative CO2e avoided from solar, 2018–2025
Challenges and Opportunities
Climate change affects MEGA in more than one way.
Physical climate impacts can influence water availability, energy reliability, raw material availability, biological inputs, supplier operations, logistics and business continuity. Transition risks can arise from changing regulations, energy costs, reporting expectations, environmental standards and stakeholder pressure for lower-carbon operations.
The opportunity is to make the business more resilient while reducing environmental impact. Renewable energy, energy efficiency, recycling, operational innovation, supplier diversification, climate-conscious capital investment and environmental management can help MEGA reduce emissions and prepare for a changing operating environment.
Climate change may increase pressure on energy, water and raw material availability.
Strengthen renewable energy, energy efficiency, resource management and supplier continuity.
Supply chains may be exposed to physical climate impacts and changing input costs.
Diversify suppliers, maintain credible long-term supplier relationships and improve forecasting.
Regulations and stakeholder expectations on emissions are increasing.
Improve GHG disclosure, climate governance, environmental management and public transparency.
Operations may face rising energy costs and business continuity risks.
Invest in solar energy, operational efficiency and climate-related risk mitigation.
Customers and communities expect companies to protect the environment.
Connect climate action with MEGA’s purpose of helping people stay healthy as long as they live.
Climate risks and opportunities need to be understood over longer time horizons.
Continue reviewing risks and opportunities from both mitigation and adaptation perspectives.
Why Climate Change Matters to MEGA
MEGA’s purpose is to help people stay healthy as long as they live. Climate change matters because health, environment and business continuity are connected. A changing climate can affect the availability of resources, the stability of supply chains, the cost of energy and water, and the conditions in which communities live and work.
For a healthcare and wellness company, this connection is important. MEGA depends on quality manufacturing, reliable suppliers, responsible distribution and stable operating environments. Climate-related disruption can affect raw materials, ingredients, utilities, production inputs and product availability.
This is why climate change is not only an environmental issue for MEGA. It is also a business resilience issue, a supply continuity issue and a stakeholder trust issue. Managing climate change helps MEGA protect the environment while continuing to provide quality health products to the markets we serve.
Our Climate Change Approach
MEGA manages climate change through environmental management, risk management, renewable energy, emissions tracking and stakeholder dialogue. Our climate approach is guided by the need to reduce emissions while preparing for climate-related impacts that may affect our operations and supply chain.
The Company promotes dialogue with stakeholders based on climate-related disclosure and continues to re-examine climate-related risks and opportunities from both mitigation and adaptation perspectives. This allows MEGA to consider how climate change may affect the business and how the business can reduce its own environmental impact.
MEGA also integrates climate-related initiatives into environmental management and medium- to long-term planning. Climate actions are connected to operational efficiency, renewable energy, recycling, innovation, carbon accounting and future low-carbon technologies where relevant and feasible.
Climate Governance and Oversight
MEGA’s climate governance is linked to the Company’s sustainability, risk management and environmental management structure. Climate-related initiatives under the environmental management system are reported to the Board of Directors at least once a year as part of sustainability initiatives. The Board receives updates on climate-related actions such as greenhouse gas emissions reduction, renewable energy, operational efficiency, environmental goals and other initiatives that require group-wide or cross-divisional coordination.
Climate-related matters are also connected to the role of the Sustainability, Risk Management and Corporate Governance Committee. The Committee reviews sustainability, risk management and corporate governance matters, including risk assessment, risk measurement and action plans to manage risks at an acceptable level. This structure allows climate-related issues to be considered not only as environmental topics, but also as risk and business continuity matters. MEGA’s disclosure states that risk assessment results and necessary countermeasures are reported regularly, at least once a year, to the Committee and the Board of Directors.
Management supports climate governance through the environmental management system and risk management process. Climate-related initiatives that require cross-divisional action, such as reducing GHG emissions, are incorporated into MEGA’s medium- to long-term environmental goals. Planned capital investments and other investments that contribute to GHG emissions reduction are considered based on MEGA’s Mid-term Business Plan. Where necessary, MEGA may also consider expert briefings to support the Board’s understanding of climate-related matters.
Climate Risks and Opportunities
MEGA considers climate change from both mitigation and adaptation perspectives. Mitigation focuses on reducing greenhouse gas emissions through renewable energy, energy efficiency and operational improvement. Adaptation focuses on preparing the business for climate-related impacts that may affect manufacturing operations, supply chains, raw materials, energy, water, waste disposal, regulations and business continuity.
MEGA has conducted climate risk assessment covering potential impacts from floods, rising sea levels, global warming / climate change and other emerging variables. For natural disasters such as typhoons, heavy rains and flooding, which are considered acute physical risks, MEGA promotes business continuity planning mainly under the risk management system. For transition risks, including the possible introduction of carbon taxes and other policy or legal requirements related to GHG emissions, MEGA manages medium- to long-term environmental goals mainly under the environmental management system.
The climate risk review considers both direct and indirect effects. Direct effects include potential impacts on manufacturing operations, facilities, energy use, water availability, production inputs and supply continuity. Indirect effects include supplier disruption, raw material scarcity, changes in input costs, climate-related regulation, reporting expectations and stakeholder requirements. This is important because MEGA’s business depends on quality manufacturing, reliable suppliers and continuous product availability in developing and underdeveloped markets.
From an opportunity perspective, MEGA’s climate response is not limited to risk reduction. Renewable energy, alternative power sources, operational efficiency, recycling, supplier diversification, credible long-term supplier relationships, forecasting technology and sustainable business practices can help the Company reduce emissions, improve resource efficiency and strengthen resilience. These areas also support MEGA’s broader purpose of helping people stay healthy as long as they live by protecting the continuity of quality health products and responsible operations.
| Climate Risk / Opportunity Area | Value Chain Area | Potential Business Relevance | MEGA’s Current Response / Direction | Opportunity for MEGA |
|---|---|---|---|---|
| Acute physical risks, including typhoons, heavy rains and flooding | Own operations and supply chain | Possible disruption to manufacturing, logistics, utilities, suppliers and business continuity | Promote Business Continuity Plans mainly under the risk management system | Strengthen site preparedness, recovery planning, supplier resilience and continuity of supply |
| Chronic physical risks, including rising sea levels and global warming / climate change | Own operations and supply chain | Possible long-term effects on resource availability, operating conditions, energy demand, water availability and supply reliability | Review climate-related risks and opportunities from adaptation perspective | Improve resilience planning, resource efficiency and climate-conscious investment decisions |
| Raw material and biological input availability | Upstream supply chain | Possible shortage or higher cost of materials, ingredients or biological inputs used in products and operations | Maintain supplier selection, credible supplier relationships, forecasting technology and flexible manufacturing capability | Diversify suppliers, improve sourcing resilience and strengthen continuity of quality product supply |
| Energy and operating cost exposure | Own operations | Energy cost volatility and emissions-related cost exposure may affect operating costs | Invest in renewable energy, solar generation and operational efficiency | Reduce reliance on purchased electricity, lower emissions and improve cost resilience |
| Water and waste disposal pressure | Own operations and local operating environment | Water availability, wastewater / waste disposal and environmental compliance may become more important under changing climate and regulations | Manage environmental performance through environmental management, recycling and operational improvement | Improve resource efficiency, reduce environmental impact and strengthen compliance readiness |
| Policy and legal transition risks, including carbon tax or emissions-related requirements | Own operations and governance | Future regulation may increase reporting, compliance or operating cost requirements | Manage medium- to long-term environmental goals under the environmental management system | Improve GHG accounting, emission reduction planning and readiness for climate-related regulation |
| Stakeholder and reporting expectations | Governance, investors and customers | Investors, regulators, customers and rating agencies expect clearer climate disclosure and action | Prepare TCFD-style disclosure and stakeholder dialogue on climate-related risks and opportunities | Strengthen transparency and public evidence for IFRS S2 / FTSE Russell-style assessment |
| Alternative power and low-carbon operations | Own operations | Energy transition may require investment and operational change | Use solar energy and consider alternative power sources as part of climate planning | Build cleaner, more resilient and lower-carbon operations |
| Risk Type | MEGA’s Current Position |
|---|---|
| Physical risks | MEGA considers acute risks such as typhoons, heavy rains and flooding, and longer-term climate-related variables such as rising sea levels and global warming / climate change. |
| Transition risks | MEGA considers policy and legal risks such as the possible introduction of carbon taxes and emissions-related requirements. |
| Value chain coverage | MEGA’s review considers manufacturing operations and supply chains, including suppliers, raw materials, biological inputs, energy, water and waste disposal. |
| Risk management linkage | Acute physical risks are mainly addressed through the risk management system and Business Continuity Plans, while transition risks are mainly addressed through the environmental management system and medium- to long-term environmental goals. |
| Opportunities | Renewable energy, operational efficiency, recycling, supplier diversification, forecasting technology, alternative power sources and sustainable business practices support emission reduction and resilience. |
| Area for future strengthening | MEGA may further strengthen disclosure by quantifying financial impacts of material climate risks, describing site-specific physical risk exposure and clarifying the time horizon for each material risk category. |
Climate Strategy and Time Horizons
MEGA’s climate direction is organized across different planning horizons: short term from 2026 to 2028, medium term from 2029 to 2032, long term from 2032 to 2035, and very long term from 2035 to 2050. These horizons help MEGA consider climate actions progressively, from operational improvements and renewable energy to longer-term decarbonization measures.
In the short term, MEGA focuses on improving operational efficiency, using renewable energy resources, recycling and innovation. For the medium and long term, MEGA considers measures such as afforestation, advanced energy resources including green hydrogen, carbon accounting and bioenergy.
This staged approach allows MEGA to manage climate action as a continuing journey. Some actions can be implemented through operational improvement and renewable energy, while others require longer-term planning, technology readiness, investment consideration and regular review.
Planning Horizon:
Short term, 2026–2028
MEGA’s Disclosed Direction
Improving operational efficiency, using renewable energy resources, recycling and innovation
Planning Horizon:
Medium term, 2029–2032
MEGA’s Disclosed Direction
Medium- and long-term measures may include afforestation, advanced energy resources, green hydrogen, carbon accounting and bioenergy
Planning Horizon:
Long term, 2032–2035
MEGA’s Disclosed Direction
Medium- and long-term measures may include afforestation, advanced energy resources, green hydrogen, carbon accounting and bioenergy
Planning Horizon:
Very long term, 2035–2050
MEGA’s Disclosed Direction
Time horizon disclosed; specific actions are not separately detailed in the current disclosure
Reducing Carbon Footprint
MEGA remains committed to reducing the release of CO2, greenhouse gases and other air emissions where relevant to its operations. The Company’s decarbonization direction includes renewable energy, operational efficiency, recycling and innovation.
In practice, this means reducing reliance on conventional energy where possible, expanding solar energy use, improving energy efficiency and encouraging lower-carbon practices across operations. These actions are designed to reduce MEGA’s environmental footprint while supporting long-term business resilience.
Renewable Energy Progress
Renewable energy is a key part of MEGA’s climate action. Since the 2018 base year, MEGA’s solar installations in Thailand, Myanmar and Australia have generated 14,880 MWh of renewable electricity and avoided 7,851 tCO2e.
In 2025, solar generation from these installations reached 2,901 MWh, avoiding 1,425 tCO2e. This figure represents solar generation across MEGA’s solar installations. For GRI 302 energy performance reporting, MEGA separately reports 2,414.02 MWh of renewable energy consumption within the organization in 2025.
Solar Generation Trend
| Location | Cumulative Solar Generation, 2018–2025 (MWh) | Cumulative CO2e Avoided (tCO2e) |
|---|---|---|
| Australia | 1,345 | 1,268 |
| Thailand | 11,677 | 5,097 |
| Myanmar | 1,858 | 1,486 |
| Total | 14,880 | 7,851 |
GHG Emissions and Energy Performance
MEGA monitors climate performance through energy consumption and GHG emissions. In 2025, total energy consumption within the organization was 31,911.30 MWh, comprising 12,649.28 MWh of non-renewable fuel, 16,848.00 MWh of purchased electricity, and 2,414.02 MWh of renewable energy.
Total GHG emissions from Scope 1, Scope 2 and the disclosed Scope 3 category were 9,852.06 tCO2e in 2025. Scope 1 emissions were 2,387.11 tCO2e, Scope 2 emissions were 7,008.77 tCO2e, and Scope 3 emissions from fuel- and energy-related activities not included in Scope 1 or Scope 2 were 456.18 tCO2e.
Climate Adaptation and Business Resilience
Climate change can affect supply continuity, resource availability and operating costs. MEGA considers the potential impacts of climate change on suppliers, production inputs, energy, water, waste disposal and regulations.
To strengthen resilience, MEGA focuses on monitoring input costs, diversifying supply chains, maintaining joint venture and third-party procurement options, understanding supply chain interdependencies, improving waste management, raising awareness of sustainable business practices, developing internal resources, and using audits and reporting to identify better practices.
Disclosed Target / Management Focus
MEGA continues to strengthen climate change management through renewable energy, operational efficiency, emissions monitoring, environmental management, climate-related risk review and long-term planning. Our focus is to reduce environmental impact while improving resilience against climate-related changes that may affect operations and supply chains.
The following focus areas guide MEGA’s climate change management and continuous improvement.
Continue reporting climate-related initiatives under the environmental management system to the Board of Directors at least once a year.
Continue reviewing climate-related risks and opportunities from both mitigation and adaptation perspectives.
Continue implementing renewable energy resources within operations where feasible.
Continue improving operational efficiency to reduce energy use and emissions.
Continue measuring and disclosing Scope 1, Scope 2 and the disclosed Scope 3 fuel- and energy-related emissions.
Continue using solar installations in Thailand, Myanmar and Australia to support emissions reduction.
Continue considering climate-related risks affecting raw materials, biological inputs, suppliers and supply continuity.
Continue preparing for climate-related effects on energy, water, waste disposal, regulations and operating costs.
Continue developing short-, medium-, long- and very long-term climate actions, including renewable energy, recycling, carbon accounting and future low-carbon technologies where relevant.
Continue promoting dialogue with stakeholders based on climate-related disclosure and climate risk / opportunity review.
Through these focus areas, MEGA aims to reduce its carbon footprint, strengthen climate resilience and support long-term sustainable growth
