Commitment, Challenge and Opportunity

CH. Karnchang operates in construction and large-scale infrastructure development, where the use of high-quality materials, energy efficiency, and resource conservation is critical. The company emphasizes environmentally friendly practices and maintains strict construction oversight to ensure safety, sustainability, and compliance with applicable standards. These efforts support stakeholder confidence, reduce operational risks, minimize environmental impacts, and contribute to long-term business value and brand reputation.

The company prioritizes safety, sustainability, and environmental responsibility at every stage, aiming to minimize environmental impact and workplace risks, foster a positive work environment, reduce operational costs, and strengthen its reputation and brand image. Upholding quality standards enhances confidence and increases company value, ensuring long-term stakeholder satisfaction.

Supporting the SDGs Goals

Goal 11:
Sustainable Cities and Communities
Goal 12:
Responsible Consumption and Production
Goal 13:
Climate Action

Stakeholders Directly Impacted

Community and Society
Benefit from improved environmental quality, contributing to better health, well-being, and quality of life for local communities. These initiatives also help reduce environmental pollution; however, the use of higher-quality and environmentally friendly materials may result in increased product costs.
Clients
Receive high-quality building materials that are safe for health and comply with applicable safety, quality, and regulatory standards.
Shareholders, Investors, and Analysts
Benefit from enhanced business resilience, improved operational efficiency, strengthened corporate reputation, and increased long-term investment attractiveness.

Goals and Performance Highlights

Goals
  1. Use environmentally friendly materials for at least 10% of the project's total material cost.
  2. Concrete must contain at least 20% recycled materials and be made entirely from local materials.
  3. Rebar and structural steel must contain at least 90% recycled materials and 90% locally sourced materials.
  4. Lightweight bricks and Mon bricks must be made entirely from locally sourced materials.
  5. Minimize construction waste in accordance with TREES NC Credit MR 2 by reusing or recycling at least 50% of the waste by weight and volume.

    (However, the team aims to reduce waste by more than 75%)

Performance Highlights
Cement contains at least
%
recycled material.
Rebar and structural steel contain at least
%
recycled material.
Construction materials are certified with
the Green Label
for environmental sustainability.
Paints and sealants are
low in volatile organic compounds (Low VOC).
Vinyl flooring and laminate wood are certified under the
Floorscore
standard.
Air conditioning systems have a
exceeding
3.7
Coefficient of Performance (COP)
Air conditioner refrigerants are environmentally friendly
410A
lighting is used.
LED
(Light Emitting Diode)
Fire extinguishers
do not contain CFCs
(Chlorofluorocarbons)

Management and Operational Approach

The company adheres to its environmental management policies and promotes sustainable construction practices under the “Green Construction” approach. Key focus areas include climate change mitigation, biodiversity conservation, and responsible resource use throughout the construction lifecycle.

Supply chain & materials
To promote sustainability across its supply chain, the company prioritizes the sourcing of environmentally friendly materials, the selection of energy-efficient resources, and the implementation of guidelines for material reuse and recycling. These efforts help reduce reliance on new raw materials and minimize construction waste.
Hazardous materials and Volatile Organic Compounds (VOCs)
The company is committed to lowering greenhouse gas emissions by avoiding or minimizing the use of construction materials that release volatile organic compounds (VOCs) and eliminating the use of asbestos-based materials. These sustainability initiatives align with the principles of Life Cycle Assessment (LCA), which evaluates the environmental impact of materials throughout their entire life cycle.
ISO and quality assurance
The company complies with ISO 9001:2015 quality management standards and emphasizes procurement practices that meet customer specifications. Every project management team is required to develop operational plans and maintenance strategies to mitigate environmental and community impacts. Furthermore, a continuous quality assurance and control system is implemented across projects to ensure compliance with quality standards, contractual requirements, and stakeholder expectations.
Construction Quality Warranty
The company provides a 36-month construction quality warranty to offer assurance to both clients and end users. This warranty includes quality inspections and the correction of any defects that may arise after construction, ensuring the project's strength, durability, and overall quality.

Guidelines for reusing materials and selecting environmentally friendly materials.

CH. Karnchang’s Commitment to Recycling Construction Materials

CH. Karnchang has implemented a systematic approach to managing construction waste, ensuring that construction waste is systematically segregated and transferred to legally authorized and licensed waste management providers for recycling or proper disposal. These materials are then either recycled or disposed of properly through a structured process, as outlined below:

Sorting materials at the source by providing designated areas and appropriate containers for different material types.
The proper storage of various materials in a designated temporary storage area, ensuring safety and preventing environmental contamination.
Evaluation of the properties and quantity of materials prior to disposal.
Selection of licensed waste disposal contractors that meet appropriate management standards.
Supervising and auditing the transportation and waste management processes of the disposal contractor.

The quality of construction materials is a key determinant of structural safety, durability, and operational efficiency. CH. Karnchang has established internal standards and best practice guidelines for concrete formwork to ensure compliance with safety, engineering, and quality requirements.

Standards and Best Practice Guidelines
Material Selection Quality Control Process
  • Use either wooden or steel formwork as needed.
  • Ensure the quality of the form-release agent to facilitate easy removal of the formwork and maintain a smooth concrete finish.
  • Use supporting equipment such as scaffolding, braces, nails, and bolts to reinforce the structure.
  • The formwork is designed and calculated to ensure safe load-bearing capacity.
  • The installation and extension of bracing must comply with load-bearing capacity requirements.
  • Damaged materials or those that could compromise concrete quality must not be used.
  • The formwork must be inspected and leveled to prevent structural sinking or shifting.

CH. Karnchang has developed guidelines to maximize material efficiency in its operations through structured construction planning and the safe reuse of materials. Examples of these practices include treating formwork wood with chemical preservatives or release agents to extend its lifespan and constructing worker accommodations using reclaimed materials that remain safe and of good quality.

Before the construction
  • Ensure the formwork is secure before placing the reinforcing steel.
  • Clean the formwork to remove any debris or contaminants.
  • Do not place heavy construction materials on the formwork to prevent damage.
Under construction
  • Install leveling devices to keep the formwork stable and prevent any movement during concrete pouring.
  • Continuously monitor the strength of the formwork while pouring concrete, and if any settlement occurs, take immediate corrective action.
After the construction was completed
  • The removal of formwork must follow the specified curing period. For example, the side forms of beams, columns, walls, and foundations should remain in place for at least two days before removal.
  • After removing the formwork, additional bracing must be installed to support the structure’s weight.
  • The concrete surface should be inspected, and any defects must be corrected as necessary.

In addition, the company has launched a pilot test for collecting and analyzing material usage data through the SAP: Controlling System. This initiative aims to optimize material usage planning for greater efficiency. Following the completion of the pilot phase, the company plans to progressively implement the SAP Controlling System across its operations to enhance material usage planning and efficiency.


Integrating Life Cycle Assessment (LCA) in Product and System Design

CH. Karnchang employs Life Cycle Assessment (LCA) as a key tool to assess and manage environmental impacts across the full life cycle of construction materials and systems. LCA results are used to support material selection, construction planning, and waste management decisions, with the objective of reducing resource consumption, energy use, and environmental emissions.

Target

In 2024, construction began on the Nan City Art and Cultural Center and the Eastern Lanna Art and Cultural Learning Center, with a strong focus on sustainable development. The project prioritizes both social and environmental aspects, particularly by incorporating a designated percentage of recycled and locally sourced materials.

Key Performance Indicators (KPIs) / Goals Performance Results for 2025 Certification
  • Use environmentally friendly materials for at least 10% of the project's total material cost.
  • Concrete must contain at least 20% recycled materials and be made entirely from local materials.
  • Rebar and structural steel must contain at least 90% recycled materials and 90% locally sourced materials.
  • Lightweight bricks and Mon bricks must be made entirely from locally sourced materials.
  • Minimize construction waste in accordance with TREES NC Credit MR 2 by reusing or recycling at least 50% of the waste by weight and volume. (However, the team aims to reduce waste by more than 75%)

CH. Karnchang has successfully met the specified benchmarks and targets outlined in the procurement contract by undergoing verification through the Material Checklist. Additionally, materials are inspected for compliance with environmental standards, including:

  • Cement contains at least 20% recycled material.
  • Rebar and structural steel contain at least 20% recycled material.
  • Construction materials are certified with the Green Label for environmental sustainability.
  • Paints and sealants are low in volatile organic compounds (Low VOC).
  • Vinyl flooring and laminate wood are certified under the Floorscore standard.
  • Air conditioning systems have a Coefficient of Performance (COP) exceeding 3.7.
  • Air conditioner refrigerants are environmentally friendly (410A).
  • LED (Light Emitting Diode) lighting is used.
  • Fire extinguishers do not contain CFCs (Chlorofluorocarbons).
  • Thailand’s Green Label and Carbon Label
  • The inspection conducted by the assigned inspector includes a quality review by experts regarding the Material Checklist.
Performance and Results

Changes in material consumption during the reporting period reflect overall project progress and construction intensity. Material usage is monitored against planned quantities to control losses, optimize procurement, and minimize construction waste.