Environment

The environment is a fundamental aspect of Our Mission, Company Policy, Core Values, Code of Conduct, and CSR commitments. UPG P&C operates under an Integrated Management System (IMS) that includes the ISO 14001:2015 Environmental Management System (EMS). Since adopting ISO 14001 EMS in 2008, the company has been consistently enhancing its environmental performance by analyzing, setting, implementing, and evaluating annual environmental objectives and targets. In 2018, UPG P&C received the ASEAN Outstanding Engineering Achievement Award 2018, for its two environmentally friendly and energy saving products.

Introduction of Solar System Project at UPG Paint Factory

In November 2023, we launched a renewal energy project called ‘Solar System Project’ at our factory, aiming to integrate renewable energy into our operations. The primary objectives of this project are to reduce our carbon footprint by decreasing both direct and indirect CO2 emissions, reduce the use of biofuels in our own power generation, promote the use of sustainable energy sources, minimize the environmental impact of our activities, and enhance environmental awareness among our stakeholders. The project involves the installation of solar panels with a generation capacity of 359.1 kW DC/ 300 kW AC.

Introduction of Solar System Project at UPG Paint Factory

In 2025, our Yangon factory, the main source of our energy consumption, consumed a total of 996,619 kWh of electricity. This comprised 473,820 kWh of government-supplied electricity, 229,299 kWh of electricity generated on-site using diesel during power outages, and 293,500 kWh of solar-generated electricity. Renewable electricity represented approximately 29.45% of total electricity consumption, while non-renewable sources represented approximately 70.55%.

Electricity Consumption in 2024 and 2025
No. Electricity Classification 2024 (kWh) 2025 (kWh) Change (kWh) Change (%)
1
Government-supplied electricity
Non-renewable
367,630
473,820
+106,190
+28.89%
2
On-site diesel-generated electricity
Non-renewable
411,594
229,299
−182,295
−44.29%
Non-renewable subtotal
779,224
703,119
−76,105
−9.77%
3
Solar-generated electricity
Renewable
265,440
293,500
+28,060
+10.57%
Total electricity consumption
1,044,664
996,619
−48,045
−4.60%

Total electricity consumption decreased by 48,045 kWh, or approximately 4.60%, compared with 2024. Although government-supplied and solar-generated electricity increased, the overall reduction resulted primarily from lower diesel-generated electricity consumption. Non-renewable energy consumption decreased by 76,105 kWh, or approximately 9.77%, while solar-generated electricity increased by 28,060 kWh, or approximately 10.57%.

Our solar energy systems comprise a 359.1 kW DC/300 kW AC installation commissioned in 2023 and an additional 100 kW AC installation commissioned in 2024. All solar-generated electricity was consumed in factory operations. We did not consume energy from any other fuel sources in 2025.

Annual Waste Reduction Targets (2025)

In 2025, our waste reduction targets were intensity based. These targets were verified by our internal Objectives and Target Initiative Team, which comprises a diverse group of internal experts led by the General Manager. The targets were: (1) To maintain effluent discharge quality with BOD ≤ 50 mg/l and COD ≤ 250 mg/l. We successfully achieved this target. (2) To reduce the volume of effluent discharged from our water-based paint plant to ≤ 11 m³ per 100 MT of production. This target was also achieved. (3) To reduce the volume of hazardous waste generated from our solvent-based paint plant to ≤ 20 kg per 100 MT of production. We met this target as well.

 

These progress reports are also submitted annually to the UNGC through UNGC CoP reports.

Waste Management

UPG Paint Factory generate both non-hazardous wastes and hazardous wastes.

Non-Hazardous Wastes

These wastes include sediment from effluent tank, sludge from effluent treatment plant, scrap timber and saw dust, paper products and packaging materials, scrap metals (excluding lead), wooden pallets, kitchen and garden wastes, human excretion, and other inert wastes.

Hazardous Wastes

The wastes will include paint chemicals, laboratory chemicals, hydrocarbon wastes, paint solvents, spent batteries, asbestos and fiber glass, photocopier and printer ink, plastics, tiers, and other inert wastes.

Waste Reduction and Disposal

UPG employs the 3R (Reduce, Reuse, Recycle) strategy for waste management. The following wastes are reduced or reused. – Paper products and packaging materials, scrap metals, batteries, plastics, and tires. The plastic and paper wastes are recycling materials in Myanmar and are sold out to our contracted recyclers.

 

The hazardous wastes generated from the production of solvent-based paints, as well as those from the QC and R&D laboratories are collected in drums and stored at the scheduled waste storage area. Subsequently, they are disposed of in the Yangon City Development Council – YCDC’s designated landfill, following the IMS procedure outlined in the UP-CM07 Waste Management Manual.

Types and Quantities of Waste in 2025

In 2025, we generated a total of 41.60 metric tonnes of waste from our operations. This comprised 2.75 metric tonnes of hazardous waste and 38.85 metric tonnes of non-hazardous waste.

 

All 38.85 metric tonnes of non-hazardous waste were diverted from disposal through reuse and the sale of recyclable materials to recyclers. No hazardous waste was diverted from disposal. The entire 2.75 metric tonnes of hazardous waste was directed to disposal, while no non-hazardous or other waste was directed to disposal.

UPG’s Waste Generated in 2022 and 2023 (Metric Ton)
Year Non-Hazardous
Waste (MT)
Hazardous Waste
(MT)
Total Waste
(MT)
Hazardous
Waste %
2022
122.94
13.66
136.6
10%
2023
105.33
12.4
117.73
117.73
Own Wastewater Treatment Plant at UPG Factory
Wastewater Treatment Plant at UPG Paint Factory

UPG installed its own wastewater treatment plant at the factory to pretreat effluents. The details of the UPG’s wastewater treatment plant are as follows.

  1. The wastewater is initially filtered through a screen filter to remove large solids and allowed to flow into the balancing tank.
  2. The effluent is then pumped into the pH adjustment tank and adjusted the pH to 9.5 by addition of sodium hydroxide.
  3. After that it is sent to the coagulation tank and subjected to coagulation by adding FT72 to neutralize the surface charges of the colloidal particles and the fine floc will be formed at this stage and then, it is conveyed to the flocculation tank.
  4. Flocculants is further added to the coagulated water to enlarge the size of sludge particles. Then it is sent to the clarifier. The sludge particles will settle down to the bottom of the clarifier. The wet sludge is pumped into a sludge holding tank before pumping it to the filter press.
  5. The filtrate from the filter press is then pumped into the balancing tank. The dried sludge will be kept in bags and disposed of at the land fill.
  6. The supernatant from clarifier is then sent to the supernatant tanks.
  7. The water from the supernatant tanks is transferred to Biological Treatment Tank which has activated sludge (microorganisms such as bacteria, and protozoa for the decomposition of organic matter) and Air Diffusers.
  8. The treated water from Biological Treatment Tank is transferred to the clarifier.
  9. The treated water from clarifier overflows to the Chlorination Tank and dosed by Chlorine automatically.
  10. The sludge particles will settle down to the bottom of the clarifier. The wet sludge is pumped into a sludge holding tank before pumping it to the filter press.
    (Check the amount of activated sludge in Biological Treatment Tank and transfer the sludge particles into Biological Treatment Tank if necessary)
    The Chlorinated treated wastewater is passed through sand and carbon filters and then tested pH and DO daily. Dissolved solids, suspended solids, BOD, COD, Residual Chlorine, Lead, Zinc, Copper, Iron and Total Coliform Bacteria are tested.
  11. The water is discharged into the drain. If it does not meet the standard, then the water is recycled to the balancing tank and subjected to treatment as before.
  12. The sludge from the wastewater treatment plant is buried in UPG’s designated landfill.
Single-Use Plastic

UPG is committed to minimizing single-use plastic within its operations. While we do not intentionally use single-use plastic, any unintentional usage is kept to a minimum. UPG is actively investigating our practices to identify and further reduce the usage of single-use plastic.

Water Withdrawal and Consumption in 2025

In 2025, our total water withdrawal was 10 megalitres, equivalent to 10 million litres. All water withdrawn during the year was consumed.
Groundwater was our only water source and was used for production and other operational purposes. It was obtained from the Company’s own groundwater well and reservoir located on the outskirts of Yangon. We discontinued the use of third-party water, including municipal tap water, due to supply shortages. Total water withdrawal and consumption decreased in 2025 following the downsizing of our operations.

Hazardous Waste Reduction Target for Solvent-Based Production in 2025

Our 2025 target was to limit hazardous waste generation to no more than 20 kg per 100 metric tonnes of solvent-based production. We achieved this target, generating 9 kg of hazardous waste per 100 metric tonnes of production during the year.

Air Pollution Control

UPG Paint Factory has potential sources of air pollution primarily include certain particulate matters, chemicals, solvent, as well as emissions from electricity generators, and vehicles. The factory is implementing emission control measures as follows.

 

  • The factory is installed with dust collectors, exhaust blowers, to reduce the particulate matters and VOC emissions.
  • Annual air-quality monitoring within and around the factory premises is conducted by Ultratech Engineering Co., Ltd., a professional environmental monitoring service. Ambient air-quality monitoring covers carbon dioxide, carbon monoxide, sulfur dioxide, ozone, particulate matter with a diameter of 10 micrometres or less (PM10), and fine particulate matter with a diameter of 2.5 micrometres or less (PM2.5). Indoor workplace air-quality monitoring will include volatile organic compounds (VOCs).
  • The factory is following the National Emission Guidelines of the Ministry of Natural Resources and Environmental Conservation (MOREC). and the guidelines of International Finance Corporation (IFC) regarding the environment.
Air Quality and Emissions Target for 2025

Our 2025 target was to maintain ambient air quality, workplace air quality, and boiler stack emissions within the limits prescribed by the National Environmental Quality (Emission) Guidelines of the Ministry of Natural Resources and Environmental Conservation. We achieved this target by maintaining the measured air-quality and emission levels within the applicable limits.

Carbon Emission in 2025

We measured the direct CO2 emissions from our factory, which were generated by our own generators during the blackouts. In 2025, the direct CO2 emissions from internal electricity generation at UPG’s factory amounted to 62 metric tons. The indirect CO2 emissions, based on our factory’s electricity consumption from the government supply in 2025, indirect CO2 emissions from the government electricity supply at UPG’s factory in 2025 were 289 metric tons.

UPG’s Direct and Indirect CO2 Emissions in 2025
Year Description Metric Ton
2025
2025 Direct CO2 Emissions (From Own Generation)
62
Indirect CO2 Emissions (From Government Supply)
289
Water Withdrawal and Consumption

In 2023, we withdrew and consumed groundwater for our production and miscellaneous needs, sourced from our own well-reservoir on the outskirts of Yangon. In 2023, we fully consumed all the withdrawn water. We did not engage in withdrawing and consuming other types of water. We do not operate our production at water stress areas.

UPG’s water withdrawal and consumption figures for 2022 and 2023
Year Ground Water (Megaliter) Third-Party Water (Megaliter) Total Water (Megaliter)
2022
15.66
0.34
16.01
2023
13.89
–
13.89
Air Pollution Control

UPG Paint Factory has potential sources of air pollution primarily include certain particulate matters, chemicals, solvent, as well as emissions from electricity generators, and vehicles. The factory is implementing emission control measures as follows.

 

  • The factory is installed with dust collectors, exhaust blowers, to reduce the particulate matters and VOC emissions.
  • Annual monitoring of air quality within and around the factory premises is conducted with collaboration of the Environmental Management Taskforce, Pollution Control & Cleansing Department of the Yangon City Development Committee. Outdoor air quality monitoring includes measurements of carbon dioxide, carbon monoxide, sulfur dioxide, ozone, and PM10 and PM2.5. Indoor air quality monitoring will include VOC emissions.
  • The factory is following the National Emission Guidelines of the Ministry of Natural Resources and Environmental Conservation (MOREC). and the guidelines of International Finance Corporation (IFC) regarding the environment.
Carbon Emission in 2023

We measured the direct CO2 emissions from our factory, which were generated by our own generators during the blackouts. In 2023, the direct CO2 emissions from internal electricity generation at UPG’s factory amounted to 212 metric tons. The indirect CO2 emissions, based on our factory’s electricity consumption from the government supply in 2023, indirect CO2 emissions from the government electricity supply at UPG’s factory in 2023 were 594 metric tons.

UPG’s Direct and Indirect CO2 Emissions in 2023
Year Description Metric Ton
2023
Direct CO2 Emissions (From Own Generation)
212
Indirect CO2 Emissions (From Government Supply)
594