Sustainability Untold Stories

The Sustainable carpet backing

Crafted for Sustainability, Engineered for Performance EcoSoft, developed by the innovative team at Carpets Inter, serves as a sustainable alternative to traditional PVC backings. Our goal was to craft a carpet tile backing that is environmentally friendly, promotes user well-being, and ensures long-term performance. Launched in 2005, it quickly gained popularity as the preferred choice for modular carpeting, with widespread adoption in installations worldwide.

Beyond its initial purpose as a carpet tile backing, EcoSoft now forms the basis for Royal Thai Acoustic Panels and supports large-format modular products like Royal Thai's MegaPlank Axminster. This versatility and adaptability reflect our commitment to constant innovation and progress.

EcoSoft Sustainability | 1

Engineered for Performance The environmental impact of PVC-based carpet tile backing has been a growing concern within our industry. With traditional backings, harmful chemicals can be released into the environment during both the production and disposal stages. These chemicals can contribute to air pollution, water contamination, and even harm human health.

EcoSoft's innovative approach eliminates the use of PVC in its construction, opting instead for a recycled fibre backing. This not only addresses the health concerns associated with traditional PVC hard backings but also introduces advanced environmental and performance benefits. These include a high recycled content, cushioned backing, VOC-free installation, and superior acoustic properties, making it a groundbreaking solution in the field.

Carpet construction EcoSoft uses roughly 50x550 ml. recycled PET bottles for every square meter of product. Our commitment to recycle 1 billion discarded plastic bottles by 2025

Primary Backing

Pile Yarn

Precoat Synthetic Binder

Recycled Cushion Backing

EcoSoft Sustainability | 2

Sustainable Features Explore the sustainable features aimed at reducing environmental impact and fostering an eco-friendly living environment.

No Harmful Chemicals

Recycled Material

for a healthier environment

Reduce plastic waste

EcoSoft backing is a zero PVC backing and is DECLARE Red List Free,

Recycled PET , sourced from bottles collected

Guarantees the absence of hazardous substances in our manufacturing process.

PVC

No harmful plasticizers or stabilizers that can leach toxins into the environment. Eliminates the potential for VOCs from chemical reactions with wet slab floors.

Certified to not contain any chemicals listed on the Living Building Challenge's Red List, ensuring that it is safe and sustainable for use in buildings aiming for LEED certification.

from land and sea, plays a vital role in fighting plastic pollution and promoting sustainability.

To date, EcoSoft has facilitated the recycling of

1 billion PET bottles recycled.

80%

80%

5%

Post-consumer PET Bottles

5% Post-industrial PET Bottles

incorporates 80% post-consumer and 5% post-industrial PET

50 PET medium-sized

Bottles

=

1 sq.m.

Breathable Construction

Lightweight Construction

For a fresh and healthy environment

Easy to move, Easy to install

38% EcoSoft's breathable construction allows moisture from the subfloor or from accidental spills to rise and evaporate through the carpet face eliminating the build-up of mold and unpleasant odors

lighter than hardback alternatives

Reducing the weight of the product not only makes it easier to handle during installation and transportation but also contributes to lower fuel consumption during shipping, thereby

reducing transport costs and carbon emissions.

EcoSoft Sustainability | 3

ecosoft Performance Benefits Enhanced Wellbeing improveD Health, ElevateD Performance

Enhanced Comfort Experience the luxury of our plush 4.0-4.5 mm. cushion backing that provides substantial underfoot comfort, helping to reduce fatigue and enhance your overall well-being. Treat your feet to a world of comfort and support with every step.

Odor and Mold Prevention The breathable construction promotes a healthier indoor environment by allowing air circulation that helps prevent the development of unpleasant odors and mold ensuring a fresh and clean atmosphere for your space.

Acoustic Performance Outperforms traditional hardback tiles by 150%-175% in sound absorption efficiency.

EcoSoft effectively reduces ambient noise, absorbs impact sounds, minimizes sound reflection, and significantly lowers noise levels in any space. Perfect for creating a quieter and more comfortable environment.

Long-Term Performance

Dimensional stability

With over 20 years of proven success globally, EcoSoft demonstrates exceptional durability.

Supported by a robust 15-year warranty, you can rely on its longevity and dependability.

Engineered for top-tier performance, it consistently maintains its integrity, resisting shrinkage, expansion, cupping, doming, and delamination in any environmental condition.

Designed to perform at the highest levels, ensuring it maintains its shape without shrinking, expanding, cupping, doming, or delaminating when subjected to heat, cold, or moisture.

This feature emphasizes the product's durability and reliability in all environmental conditions.

EcoSoft Sustainability | 4

Sustainability Awards A building product that is renewable, environmentally responsible and where the impact is considered over the entire lifetime of the product.

Singapore Green Building SGBC sets high standards and benchmarks for green building solutions both locally and regionally to help build more sustainable cities for better living.

nsf 140 The standard enables organizations throughout the carpet supply chain to achieve sustainable attributes and demonstrate compliance.

Environmental Product Declaration EPD (Environmental Product Declaration) is an independently verified and registered document that communicates transparent and comparable information about the life-cycle environmental impact of products.

DECLARE Free from chemicals listed on the Red List, which comprises harmful substances.

CRI Green Label Upholding standards of low emissions of VOCs.

ILFI Recognized for contributing to healthy buildings under the WELL Building Certification.

Soft Underfoot, Soft on the Environment Choosing EcoSoft demonstrates a commitment to environmental preservation and creating a better environment for their employees and customers, all while ensuring top-notch performance and long-lasting durability for their projects. EcoSoft isn't just a choice

It’s a choice for a future built on sustainability.

EcoSoft Sustainability | 5

?

DID

Carpet tile backings are the backbone of any modular carpet. They provide strength and durability from layered construction, functionality with easy removal and replacement, comfort from softness and acoustic properties and recyclability from modular design.

YOU

EcoSoft is based on the same felted material construction used for high quality acoustic panels.

Know

8 Million metric tons of plastic enters the ocean from the land every year. If this trend continues by 2050 there will be more plastic in the Ocean than fish.

A discarded PET bottle will take 450 years to decompose unless it is recycled.

It takes about three times as much water to produce a 1-liter bottle, than the 1 liter of water it holds.

More information on the benefits of EcoSoft are available on our website Plastic Pollution

Lightweight Benefits

(Update/replace Recycled/ Recycled material Oct 2020)

(Update position paper 2020)

Acoustic Performance

Wet on Green Concrete Slabs

(Update Position paper May 2020)

(Update/Replace Position paper July 2020)

EcoSoft Sustainability | 6

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Going Solar

The future is bright with solar made products

Energy conservation is a dual commitment for our company, blending fiscal responsibility with environmental stewardship. By prioritizing efficiency and sustainability, we have effectively lessened our reliance on conventional energy sources. The incorporation of solar power into our manufacturing processes sets the stage for a greener, more eco-conscious future.

In the last twenty years, dedicated work in technology and energy management has led to a significant 40% decrease in electrical energy use. Building on this progress, the implementation of solar arrays is now revolutionizing our energy environment.

From sunlight to success:

Our commitment to Solar-Powered production In 2021, the implementation of our first solar array marked a pivotal step in harnessing renewable energy specific to manufacturing. The facility in Thailand receives abundant sunlight thanks to its geographical location, making it an optimal choice for this implementation.

Solar Power Sustainability | 1

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factory

Solar Ph 1 | 2022 1 MWp

Warehouse

ROYAL THAI Yarn Process Eco Dying

Office Needlepunch

Solar Ph 4 | 2028

Axminster

Solar Ph 3 | 2026

1 MWp

0.8MWp Tufting Carpet Tile

Hand Tuft

Solar Ph 2 | 2024 1 MWp

Energy consumption per unit carpet mfg

KW/Sqm

Reduction in fossil fuel usage

10.0

from energy reduction initiatives and Solar power program

8.0

Projected Solar Power

6.0

4.0 Fossil fuel based energy usage 2.0

2000

2005

2010

2015

2020

2025

2030

The initial 1 MWp solar system installation demonstrated immediate benefits and set the stage for the subsequent rollout of a second installation of 1 MWp in 2024. Plans for additional phases in 2026 and 2028 will expand our solar power generation capacity to 4 MWp, the equivalent of nearly 70% of our current daytime electrical usage.

This transition is integral to our broader goal of attaining net-zero greenhouse gas emissions by 2050, a commitment set forth in 2023 that aligns with our global vision for sustainable operations.

Solar Power Sustainability | 2

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Key benefits of

solar power

The adoption of solar power brings forth several substantial benefits.

cool

cool

Reduced

Smaller

Greenhouse Gas Emissions

Carbon Footprint

Solar power substantially cuts down on the emissions associated with conventional electricity production, contributing to a healthier planet.

The use of solar panels translates directly to reduced carbon emissions, reinforcing our dedication to environmentally considerate practices.

Sustainability in Operations Reliance on solar power demonstrates a long-term sustainable approach to energy usage, one that is renewable and less harmful to the ecosystem.

20% (2023)

Long term

COST Savings The use of solar power systems can reduce electricity costs leading to long term financial benefits and reduced product cost.

The inclusion of solar power in our energy portfolio is a crucial step towards reducing our environmental impact. By harnessing the sun's renewable energy, we showcase our dedication to sustainability and a greener future.

This transition not only benefits the environment but also highlights our commitment to innovation in clean energy solutions.

Solar Power Sustainability | 3

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?

DID

1 MWh of solar power generated today equivalent to running 330 homes for 1 hour (source Clean energy authority)

YOU

Our Current 2 MWp Solar array uses 3650 panels and covers an area of 18000 m2

Know

Our current 2MWp Solar array offsets over 40% of daytime energy and will increase to nearly 70% in 2028

1 MWh of solar energy is enough to offset the equivalent of 1,250 tons of CO2 per year

The solar power generated by our 2 arrays from 2024 is capable of running our 74% of our Carpet tile production (Estimate based on 2023 power data).

Solar energy is the most abundant energy resource on earth -- 173,000 terawatts of solar energy strikes the Earth continuously.

That's more than 10,000 times the world's total energy use.

Apple's headquarters in Cupertino, California, USA, is noted as the largest solar-powered building with an impressive 260,000 m2 of solar panels on its roof, generating a 17 megawatts of energy.

Solar Power Sustainability | 4

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RE 3

Carpet Reclamation Return Reuse Recycle At Royal Thai, we take pride in crafting high-quality carpets that are not only visually stunning but also exceptionally durable, standing the test of time. However, when it's time to revamp your space with a new product and design, it's also crucial to consider the environmental impact. Ensure your old product doesn't end up in a landfill by taking advantage of the Royal Thai Carpet Take Back Program.

RE3 Reclamation Sustainability | 1

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A Second Life For Your Old Carpet Our zero waste-to-landfill commitment in manufacturing has been in action since 2005, and we're proud to extend that commitment to the carpets that currently grace your floors. When it's time for an upgrade, we will ensure your old carpet doesn't just end up as waste; it transitions into a useful second-life product or is disposed of in the most environmentally friendly way possible — without adding to a landfill.

Recovering and recycling the waste we generate conserves our precious natural resources, reduces environmental impact, and supports the development of a more circular economy.

We strive to provide closed-loop recycling solutions whereby waste materials are separated and recovered as secondary resources or used in the manufacture of new products. Where this is not possible, they are used as fuel in the production of clean energy.

In Thailand, we're currently working in partnership with local facilities to convert old Carpet tile, Broadloom, and Axminster into refuse-derived fuel (RDF) pellets. These pellets are then utilized by industries such as cement manufacturing or power generation plants to produce clean energy.

An impressive record speaks for itself, with over 1.3 million Kg of used carpet taken back and processed between 2020 and 2023

RE3 Reclamation Sustainability | 2

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Our Simple Take-back Process When you opt for a new Royal Thai carpet or Carpets Inter Carpet Tiles, our expert Installation team will handle it all.

1 2

Uplifting of old carpet

Sorting and packing

Our team will carefully remove your existing carpet during the new installation.

The used carpet will be sorted based on its condition, and ready for either recycling or reuse.

4

3 CERTIFICATE

Removal and recycling Ensuring responsible disposal, we'll transport your old carpet to specialized local partner facilities.

Receiving waste disposal certificate At the end of the process, you'll receive a certificate confirming the ethical disposal of your old carpet.

It's as Simple as That!

No matter the brand of your old carpet, our Installation team is equipped to take it away for recycling while installing your beautiful new carpet.

RE3 Reclamation Sustainability | 3

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zero waste to landfill Using RDF Waste from uplifted used carpet and Installation offcuts All customers, contractors and recyclers are encouraged to dispose of waste carpets that cannot be reused in the most environmentally way to avoid sending waste to landfill.

1 Waste Pre-Processing All waste to be converted to RDF (Refuse Derived Fuel) is analysed to ensure the physical and chemical properties will have no harmful emissions.

2 Co-processing in cement kiln The high production capacity of cement kilns are capable of utilising large volumes of non-harmful industrial RDF (Refuse Derived Fuel) to power the cement kilns.

3 Cement Powder Contains Fuel Ash The Fly Ash from the incineration process is used in the production of cement ensuring that no waste goes to landfill.

4 Sustainable Construction Protecting Thailands Environment

5

A key success factor from RDF in cement manufacture is that waste generated by one industry is a resource for another. We support Cement for Green Buildings and Sustainable Infrastructure projects across Thailand.

RE3 Reclamation Sustainability | 4

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Key benefits

Better for the Environment Participating in the Carpet Take Back Program isn't just about convenience; it's a step towards a greener world

Reduces landfill waste

Ensures safe disposal

Your old carpet will have a second life instead of contributing to landfill growth.

Say goodbye to harmful disposal methods.

Generates clean energy

Economic disposal

Waste converted into RDF pellets supports clean energy generation.

We offer this service at a low cost, so it's good for the planet and your budget.

Together we can help pave the way toward a cleaner, sustainable future Note: Although this service is currently exclusive to Thailand, clients in other countries can speak to their local account managers about alternative local carpet recycling options.

RE3 Reclamation Sustainability | 5

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Carpet Reclamation since 2014 583,000 Kg

745,000 Kg

724,000 Kg

655,000 Kg

315,000 Kg

449,000 Kg

310,000 Kg

258,000 kg

2014

2015

2016

2017

2018

2019

2020

2021

292,000 kg

411,000 kg

2022

2023

? DID YOU Know

Conventional Nylon is not biodegradable and will stay in landfill for decades.

It is estimated 89% of used carpet is sent to landfill every year.

RE3 Reclamation Sustainability | 6

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waves of change Creating an Eco-friendly yarn dying process

Water has played a vital role in carpet manufacturing for years, particularly in processes like fiber dyeing and backing. However, this heavy reliance on water has a downside - the release of harmful effluents as a significant side effect. During fiber dyeing processes, the discharge of harmful substances into water bodies introduces a mix of chemicals, including dyes, heavy metals, and other toxins, which can pose substantial environmental risks. These pollutants disrupt aquatic ecosystems, endanger wildlife, and compromise water quality, making it unsuitable for consumption, irrigation, and other essential purposes. Amid increasing global environmental consciousness, the industry is gradually transitioning towards a circular water reuse approach, driven by the integration of new technologies and sustainable manufacturing practices.

However, this transformation has been notably gradual.

Making every drop count

Our factory is located in an area of rural rice fields.

Royal Thai identified the issue 25 years ago and decided to implement a more sustainable manufacturing process. This choice went beyond mere business strategy; it symbolized a dedication to the local environment, especially noteworthy given the factory's setting in a rice-growing region.

The emphasis on maintaining high water quality reflects not only corporate principles but also a deep-seated commitment to serving the community.

Eco-Friendly Yarn Dying Sustainability | 1

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Spray Dying reduces water usage by 30 - 40%

The journey towards a more sustainable manufacturing process was intricate, marked by the integration of cutting-edge technologies like spray drying, advanced computerized water management systems, and highly efficient recycling systems.

Zero Liquid Discharge

100%

70%

100% Recycled Water

70% Water Reduction

advanced technologies water management systems

These innovative steps not only reduced water usage by 70% but also propelled the company to a significant accomplishment. By 2015, Royal Thai achieved a major milestone with complete process water recycling, and Zero effluent output underscoring their dedication to environmental stewardship and resource efficiency.

Clean water

Water treatment at our factory

Water Waste Processing Sustainability | 2

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Sludge

Royal Thai saw an opportunity to go beyond water

to Soil

solid waste. Typically, the outcome is solid waste

A sustainable cycle reimagined

recycling. The industrial water recycling process mirrors consumer wastewater treatment, involving aeration, sedimentation, and filtration to eliminate sludge destined for landfills. However, Royal Thai viewed this not as an issue, but as a chance for innovation.

Working with a local fertilizer manufacturer, Royal Thai began discussions on how to use the biological sludge from the wastewater processing in fertilizer production. Together, the two partners modified the water processing system, which now takes the water through chemical, physical, and biological processes to output a waste sludge that meets stringent Department of Works standards for agricultural use.

Water Waste Processing Sustainability | 3

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Sowing the

Seeds of Sustainability

The result is a beautiful circle of life - the sludge is delivered to the fertilizer company, blended with growing nutrients like Dolomite, Marl, Nitrogen, Phosphate, and Potassium, and then converted into fertilizer pellets. These pellets support the growth of local crops such as Pineapple, Cassava, Sweetcorn, and Rubber Trees.

Since the initiative began in 2015, Royal Thai has donated nearly 2000 tons of sludge, which has been turned into more than 400,000 bags of fertilizer.

This achievement is a testament to how business can coexist harmoniously with the environment, creating an ecosystem where waste is not wasted, but put into service for new life.

Water Waste Processing Sustainability | 4

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Water Waste Processing Treated Water Recycled Back to Production

Factory

Latex Mixing

Dye Process

food center

A storage basin designed to collect wastewater and stabilize flow rates before further treatment. The pond helps manage fluctuations in inflow, allowing for more consistent treatment processes downstream.

equalization pond

Factory

RESTroom

Aeration is the process of adding air into wastewater to allow aerobic bio-degradation of the pollutant components. It is an integral part of most biological wastewater treatment systems.

aeration pond

sedimentation

Reverse Osmosis Reverse osmosis (RO) is a membrane-based filtration process that separates contaminants from water by applying pressure to push it through a semipermeable membrane. This method is highly effective at removing a wide range of contaminants, including salts, microorganisms, and organic compounds making it ready for re-use.

Polishing Pond Green Area Waste water recycled and recycles back to aquifer

A polishing pond is a shallow lagoon that provides additional treatment for wastewater after primary and secondary processes. It allows for natural processes such as further sedimentation, microbial activity, and nutrient uptake by plants, improving water quality before discharge.

sludge dewatering Waste Sludge Sludge dewatering is the process of removing excess water from sludge generated during wastewater treatment. It is achieved by pressing the water out of the solids reducing the volume and weight of the sludge and making it easier to handle and transport to be made into fertilizer.

Sedimentation is a physical process where particles suspended in wastewater settle out of the liquid. This is accomplished in a sedimentation basin where gravity causes solids to settle at the bottom, allowing clearer water to be drawn off from the top.

The addition of microorganisms metabolize organic matter in the wastewater breaking down the organic solids, leading to the formation of flocs (clumps or clusters of tiny particles, including microorganisms, organic matter, and other solids, that stick together in water) that can be easily separated from the water through sedimentation.

Water Waste Processing Sustainability | 5

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sludge processing Waste sludge upcycle to fertilizer

1

2

Mixing Process

Fermenting

3 Mixing Process 2

Dolomite Marl Soil Nitrogen Phosphate Potassium

4 5

Pelleting

Packing

Aiding crop growth and Soil Regeneration

Water Waste Processing Sustainability | 6

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?

Textile production is estimated to be responsible for about 20% of global clean water pollution from dyeing and finishing products.

DID

https://www.europarl.europa.eu/topics/en/article/20201208STO93327/ the-impact-of-textile-production-and-waste-on-the-environment-infographics

YOU

The water we recycle is clean enough for fish to live

Know

Our waste sludge has been used to manufacture over 200,000 tons of fertilizer

Organic farming naturally sequesters CO2 from the atmosphere.

1% of extra organic materials = 10 tons carbon draw down per year.

New Reverse Osmosis is a magic like process for water treatment, it which doesn’t just filter out contaminants, it removes dissolved salts, harmful chemicals and even difficult microbes often left by other treatments.

The biological treatment used for separating our waste water is a natural process (think bacteria eating up pollutants) It’s like having millions of cleaners working day and night without a break.

Fertilized crops can increase yield by 2 – 3 times more than untreated soil (Ionique)

100% Zero Waste

Zero Liquid Discharge

100% Recycled Water

Water Waste Processing Sustainability | 7

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Zero Waste Management Diverting waste from landfill In our quest for environmental excellence, we take pride in our dedication to waste management. Maintaining Zero manufacturing waste to landfill since 2009 stands as a testament to our commitment and our battle against waste. Across our diverse range of carpet and acoustic products in our 160,000 m2 Thai facility, we have made significant progress in reducing our environmental impact.

Zero Waste Management Sustainability | 1

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Our commitment to eliminating landfill waste has been strongly backed by efforts to minimize, recycle, and repurpose waste whenever feasible. Through innovative systems and processes, we have effectively lowered waste generation by more than 20% over time. These reductions have not only enhanced our operational efficiency but also positively impacted the environment.

over 15,000 m2 donated to Education Improving manufacturing processes

20% reduction

institutions and local community projects in last 2 years

Material Recycling initiatives are in operation throughout the manufacturing process ensuring that we keep as much waste material as we can within the manufacturing loop.

Our work in reclaiming and

recycling wool recently achieved the prestigious BCG award for circular economy

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After all the efforts to recycle within the manufacturing process are exhausted, any residual waste that cannot find a new purpose is donated to a local power plant to keep it out of landfill.

This non-recyclable waste is converted into Refuse-Derived Fuel (RDF) pellets, used for clean electricity generation.

The Material we recycled to RDF Carpet edge waste from manufacturing Carpet installation waste (offcuts) Waste from latex backing production Used and damaged carpet material

Zero Waste Management Sustainability | 3

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Where Zero is Hero Our relentless pursuit of waste elimination is a core aspect of our wider commitment to sustainability.

Through initiatives like our Bio-Circular-Green (BCG) and Net-Zero Greenhouse Gas (GHG) programs, our goal extends beyond merely reducing waste. We strive to innovate and refine our processes to prevent waste creation from the start. We are dedicated to our efforts, believing firmly that they will lead us to a future where the concept of waste is outdated, and sustainability is seamlessly integrated into all our production activities.

The tables below illustrate our achievements in waste management over the years by displaying the manufacturing waste (Kg '000) alongside the equivalent energy (KWh) generated from that waste.

100 90

100

80

86.21

70

84.74 76.35

60

MANUFACTURING WASTE (KG’000)

128

460

436

287

243

263

300

ENERGY (KWh‘000)

125

452

428

282

238

258

294

2017

2018

2019

2020

2021

2022

2023

50 40

waste landfill

30 20 10

16.33

Zero Waste To Landfill

0

0

0 2005

2006

2007

2008

2009

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Jan-Jun | Jul-Dec

2005 – 2009

Disposable waste diverted from landfill to incineration

From 2009 Carpet waste used for Cement manufacture From 2014 Solid water waste (Sludge) used to make fertilizer

The Journey Beyond Zero

From 2017 Manufacturing waste used

Add a section to show what actions led to Zero to waste to landfill and what actions we took beyond Zero

for Electricity Generation

Key benefits RDF in Energy Generation Utilizing RDF presents many advantages that align with our sustainability mission

RDF

RDF

Reduction of Fossil Fuel Use RDF serves as an alternative to non-renewable resources,

thereby conserving valuable natural reserves.

Decrease in Landfill Waste

Clean Energy Production

By converting waste to energy,

Through RDF, we endorse the generation of cleaner

we minimize the volume of solid waste that would otherwise occupy landfill space.

energy, which reduces green-

house gas emissions compared to conventional fossil fuels.

Zero Waste Management Sustainability | 4