Sustainable Development
Governance and Economic
We have adhered to and complied with the good corporate governance in operating business applying to the directors, executives, and employees. Moreover, good corporate governance is regarded as a key factor in enhancing our overall success as the organization’s responsibility towards society based on the Corporate Governance Code for listed companies 2017 (CG Code) by the SEC. However, there were some principles that had not been implemented in 2024, but the Company has defined alternative practices that can fulfill the intended outcomes of the principles as follows:
1. Cumulative Voting for the Election of Directors
According to the Company’s Articles of Association no. 16 stating that each shareholder shall elect a company director, which is made by a majority vote as a resolution. In addition, no. 16 (1) specifies that each shareholder shall have a number of votes equal to one share for one vote. Thus, the cumulative voting for the election of directors is not applied at the shareholders’ meeting. However, the Company has determined measures to treat the rights and encourage the participation of minority shareholders such as proposing agenda in advance for the shareholders’ meeting, nominating a candidate to serve as a director, etc.
2. The Board of Directors establishes the Risk Management Committee and CG Committee & Sustainability (Board Level)
The Board of Directors has appointed the Risk Management Committee which is chaired by Mr. Jatuphat Tangkaravakoon, director / Chief Executive Officer, and Risk Management Working Group consisting of top executives from each department. The committee has duties and responsibilities for determining the risk management policy, monitoring the risk management, and then reporting to the Audit Committee and Board of Directors.
In addition, the Board of Directors has appointed the Governance and Sustainability Committee, which is chaired by a director, Mr. Jatuphat Tangkaravakoon, to coordinate with working groups to advance governance and sustainable development, and report to the Board of Directors.
3. Appointment of a High Percentage of Independent Directors (more than 50%) on the Board of Directors
The Board of Directors consists of 6 directors; 2 executive directors or 33.33 %, and 4 non-executive directors or 66.67%, which consists of 3 independent directors or 50% of the entire board. This is in compliance with the composition of the Board of Directors and independent directors regarding the regulations specified by the Securities and Exchange Commission which states that the Board of Directors must consist of independent directors at least 1/3 of the entire board, but must not less than 3 independent directors.
The Company encourages directors, executives, and employees at all levels to adhere to ethical business conduct and behavior in line with the principles of good corporate governance, integrity, and business ethics. This approach supports strong performance and long-term sustainable growth, while also ensuring responsibility to stakeholders, society, and the environment. To reinforce this commitment, the Company has developed the “Corporate Governance and Business Ethics Handbook”, which serves as a guideline for all directors, executives, and employees, who are required to acknowledge and comply with its contents. In 2024, over 92.16% of employees completed training and passed the assessment on business ethics, reflecting the Company’s dedication to fostering a strong ethical culture across the organization.
The Company is firmly committed to conducting business with transparency and places great importance on preventing all forms of corruption. In alignment with applicable laws, the Company has established clear anti-bribery and anti-corruption policies and guidelines. These have been communicated across all levels of the organization as well as to external stakeholders, ensuring that everyone understands and strictly adheres to them. As part of this effort, the Company has implemented a “No Gift Policy”, which prohibits the giving or receiving of gifts in any form, recognizing that such exchanges could potentially lead to corrupt practices.
To further support this commitment, the Company maintains an effective internal audit and monitoring system, along with a secure and confidential whistleblowing channel, enabling individuals to report any misconduct. These measures help ensure that the Company operates in accordance with the highest standards of corporate governance and integrity.
The Company is committed to a systematic approach to risk management to effectively navigate an increasingly uncertain business environment. Our risk management policy and framework are aligned with the international COSO ERM standard and are applied consistently across both domestic operations and international subsidiaries.
We are also dedicated to fostering a risk-aware corporate culture by encouraging employees at all levels to understand and manage risks. This is achieved through various activities and training programs. For example, in 2024, the Company organized a training session on “Disruptive Technology” to prepare employees for the digital age, with an impressive 99.7% of participants successfully completing the course and passing the assessment.
In addition, the Company places great importance on crisis preparedness by developing a crisis management strategy under a Business Continuity Management (BCM) system. Our Business Continuity Plan (BCP) is regularly updated in alignment with ISO 22301 standards. In 2024, a Business Continuity Management Committee and Working Group were established to drive and oversee the implementation of these plans, including regular simulation exercises to ensure organizational readiness.
At TOA, we believe that the heart of Inspiring Better Living lies in delivering high-quality, safe, and environmentally friendly products. To reinforce this commitment, the Company has adopted a Product Stewardship Policy as a guiding framework for responsible product management throughout the entire product life cycle. This policy reflects our dedication to minimizing environmental and social impacts by ensuring accountability in every stage—from the selection of raw materials to the manufacturing process. We have invested in the continuous development of innovative coatings under the “TOA GREENOVATION” initiative, which is grounded in the principles of “CLEAN – GREEN – SAVE.” These principles serve as the foundation for creating environmentally responsible products and driving tangible sustainability outcomes.
Carbon Footprint Labels by TGO
To instill confidence among all stakeholders, the Company consistently registers and obtains product quality certifications from independent third-party organizations. As a result, in 2024, a total of 318 products received the Carbon Footprint of Products (CFP) label, while 131 products were awarded the Carbon Footprint Reduction (CFR) label, representing the highest number of certified products in the architectural coatings market. Additionally, 69 products have earned Green Label certification, further demonstrating our commitment to sustainability. To help consumers make informed purchasing decisions, the Company has launched the “TOA GREEN CERTIFIED” mark. For more details about our TOA GREEN CERTIFIED products, please visit our website: TOA GREEN CERTIFIED.
Beyond developing outstanding products, the Company prioritizes transparency and attentiveness to customer feedback. We provide clear information on product safety (SDS), environmental impacts, and proper usage through manuals, videos, and technical documentation. This empowers consumers to make informed decisions and use our products with confidence, safety, and effectiveness. Moreover, the Company is committed to promptly addressing customer complaints. In 2024, we successfully resolved 100% of complaints within 24 hours, reflecting our firm belief that customer satisfaction and trust are our highest priorities.
The Company is dedicated to providing the best experience for every customer through diverse and easily accessible distribution channels, while maintaining close customer relationships to meet all their needs.
We have developed a wide range of communication and sales channels, including a comprehensive product information website, active social media platforms that share the latest news and promotions, a Call Center staffed by experts ready to offer advice, and a nationwide network of authorized dealers. These channels ensure that customers can conveniently access our products and services anywhere.
In addition, we highly value customer feedback and conduct regular satisfaction surveys to continuously improve our products and services. In 2024, we achieved an average customer satisfaction score of 80.22%. Our success in customer relationship management is further reflected in the prestigious “Thailand’s No.1 Favorite Paint Brand” award, which we have proudly received for 12 consecutive years, demonstrating long-standing consumer trust.
The “No.1 Brand Thailand 2024” award in the architectural paint category, based on a nationwide survey of Thai consumers, has been proudly awarded to us for the 12th consecutive year by Marketeer Group.
The Company believes that sustainable growth can only be achieved when our business partners grow alongside us. Therefore, we have established the “Supplier Code of Conduct” to guide responsible business practices that respect social and environmental responsibilities. This code covers key areas including human rights, employment, occupational health and safety, and environmental stewardship.
For more details, please refer to our Supplier Code of Conduct.
The Company places great importance on sustainable supply chain management by carefully selecting and designating key suppliers. We integrate Environmental, Social, and Governance (ESG) criteria into supplier risk assessments and conduct on-site supplier evaluations to ensure that our supply chain operations are free from human rights violations and mindful of environmental impacts.
Furthermore, we strive to build strong partnerships with our suppliers by fostering knowledge exchange, technology sharing, and innovation particularly in areas such as greenhouse gas reduction and waste minimization in production processes. This collaborative approach drives sustainable growth and development for all parties involved.
In 2021, we launched our new innovative paint product named “TOA Organic Care” – the first and only safest plant-based paint in Thailand. Under the concept of “Living Care innovation”, we put our best effort to create and innovate our products for better living and achieving worldwide sustainability. The plant-based paint is designed for the protection of everyone in your house, especially children and the elderly, as well as people with allergies or asthma, through proven technology-led natural ingredients with plant-based components from the USA in lieu of traditional petroleum-based raw materials. This paint is certified by the USDA BioPreferred®, USA.
