SUSTAINABILITY REPORT 2019

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Community and Social Development
Climate change and the more frequent occurrence of serious natural disasters has adversely affected the price of agricultural products, incomes, and livelihoods of Thai farmers. Between 2015 and 2017, it was found that the number of poor people in Thailand increased by more than 478,000, mostly in the northeastern and northern regions. ThaiBev has been monitoring this problem and recognizes the importance of community and social development.

The Group focuses on educating and training farmers, as well as encouraging communities to help conserve forest resources and prepare for natural disasters. These steps are consistent with Articles 1, 2, 3, 6, 8 and 15 of the UN’s Sustainable Development Goals. ThaiBev has worked consistently for more than 15 years to strengthen communities with the “A Good Community with Smile” project. The project helps communities to be self-reliant and sustainable.

By collaborating with partner organizations to organize activities and projects, this project aims to improve the quality of life in targetted communities, while stimulating local economies and protecting natural resources and the environment. The project also creates learning opportunities for children and various disadvantaged groups.
ThaiBev Unites to Fight the Cold Project 20th Anniversary

ThaiBev Unites to Fight the Cold Project is entering its 20th year. The project started handing out warm blankets to vulnerable communities in 2000. This project has received cooperation from the Ministry of Interior, Department of Disaster Prevention and Mitigation, and provincial governors, who collect data on the number of people affected by cold weather in each province.

Every year, 200,000 green blankets are distributed in areas affected by cold temperatures in the north and northeast. To date, 4 million blankets have been delivered across 45 provinces in Thailand. Each year the donation of blankets shifts, depending on changing weather patterns and data from the Ministry of Interior.

People who received blankets in 2019
Elderly citizens
88,654
people
Low-income households
61,095
people
People exposed to cold weather
33,098
people
Disabled people
13,220
people
Unaccompanied children
3,933
people
Data from the Ministry of Interior
ThaiBev gives employees and business partners the opportunity to buy additional blankets through the “1 share, 1 warm-up” program. In the past year, ThaiBev employees and business partners purchased 1,000 additional blankets for students affected by cold weather in Uthai Thani Province.

In addition to delivering the blankets, ThaiBev is supported by business partners from many sectors to help communities in other areas with scholarships, teaching aids, and sports equipment for schools in need.
Insight
Karan Trakun-iamcharoen

Event Manager
“I have participated in ThaiBev Unites to Fight the Cold activities for ten years. Since I was based in Phitsanulok, I have carried out this volunteer work. Every time I give out blankets, I feel good about being a donor, giving back to society, caring for each other. Currently, we have more and more business partners to distribute and support the donations. I feel good every time. It’s a useful activity that should be continued.”
Duan Chitsrakham, 70
who is affected by cold weather and received blankets from ThaiBev
“The weather is very cold here. Today, I have to thank ThaiBev. I feel very warm, and happy, very happy.”
A Good Community with Smile

This project has been conducted for eight consecutive years. It creates opportunities for more than 3,500 young people in communities surrounding ThaiBev Group factories. The aim is to develop their knowledge and skills with expert teachers in three areas:

  • Football:
    Trainers and speakers from ThaiBev Football Academy teach basic skills to local youth.
  • Music and Singing:
    With help from the Sukree Charoensuk Foundation, musicians train selected students from various schools who have shown an interest in performing with bands and orchestras, so they can further develop their skills and earn an income through music in the future. Five students are able to enter the competition at the inter-campus level.
  • Art:
    Children are taught how to make handicrafts and other products, such as herbal compress balls, woven bamboo, and painted Ban Chiang jars. Speakers from various communities are invited to inspire students to be creative, work hard, and generate income for themselves. ThaiBev encourages young people to learn from these activities and hopes that they will continue to practice these skills throughout their lifetimes.
Insight
Akrapol Rattanawongsakul
Musical Expert and Speaker from the Sukree Charoensuk Foundation
details available at https://www.facebook.com
“Joining the “A Good Community with Smile” project has allowed the foundation to teach and create opportunities for young people in remote areas where the foundation hitherto has not been able to reach. We are covering more area now, because for eight years we have been going almost everywhere with ThaiBev. We share musical knowledge with the children, to help build their capacity for the future.”
Nanthana Silasan
Hin Cone Academy Team Captain, a student participating in “A Good Community with Smile” project in sports skills (football)
“I learned dribbling skills and how to pass the ball. More importantly, I learned about nutrition, what food I should eat before and after the match. I will continue practicing every day what I have learned, because football is a sport that must be practiced regularly to become more skilled and become a professional footballer, in parallel with my studies as well.”
Developing Water, Developing Lives, Developing Quality of Life
Before constructing water drainage system
During constructing water drainage system
After constructing water drainage system

In order to help communities mange their water resources, ThaiBev has partnered with the Utokapat Foundation under Royal Patronage, implementing His Majesty King Bhumibol Adulyadej The Great’s principle, “Think Macro, Do Micro.” It means that the whole country’s water management must be viewed as a macro system. There must be various water storage areas – large, medium, and small — that are linked. Because we cannot focus on all of them at the same time, we have to start with micro water management at the community level. Through education and collaboration, communities can own and support the application of science and technology. Communities will be able to manage water resources more efficiently, and fit water management practices to social conditions. They will also be able to find, use, reserve, and efficiently manage water, leading to sustainable development, greater productivity, a better economy and quality of life.

ThaiBev has worked with Nong Ping Kai village in Na Bo Kham Sub District, Mueang District, Kamphaeng Phet Province, to solve a water shortage problem that occurs during the dry season, and flooding during the rainy season. The community’s Tao Tai canal was restored and dredged, and 3,100-meter-long cement support structure was built to reduce water flow velocity during the flooding season.

The community’s existing check dam was also improved to increase water storage and deliver water to agricultural areas with greater efficiency. The community has laid down rules for water usage and allocation. In total, the project affects 9,564 rai of agricultural land, with 588 households in four villages benefiting.

Insight
Mun Narata
Farmer from Nong Ping Kai Community, Kamphaeng Phet Province
“Before we had a problem during floods: the Tao canal weir would often overflow. This made it difficult for the farmers to make a living. During the dry season, water would have to be released from Suan Mak canal into farmers’ plots, a process that took three-to-four days to complete – until ThaiBev and the Utokapat Foundation came to help improve the canal.

Now the water management here is better; there is no flooding anymore during the rainy season, and in the dry season.”
Sa-ngat Phasuwan
Farmer from Nong Ping Kai Community, Kamphaeng Phet Province
“In the past, there was an irrigation pipe placed above, but it collapsed, and the water was not able to flow into agricultural areas. During the flooding season, especially from July to August, the water would overflow into farming areas. But then ThaiBev and the Utokapat Foundation came to improve the canal.

Now it is easier for water to run into agricultural areas, and farmers are happy.”
ThaiBev Engages in Forest Conservation with the Huai Hong Khrai Royal Development Study Center to Improve Quality of Life

Deterioration of forests has occurred where some communities living on high mountains plant monocrops that need little water. Another challenge these communities face is the continuous use of large amounts of chemicals. ThaiBev has, in collaboration with the Huai Hong Khrai Royal Development Study Center, successfully applied the His Majesty King Bhumibol Adulyadej The Great’s development model in Nan province to restore watershed forests and improve local people’s quality of life.

Two villages have been chosen for the project: Srinapan village and Nam Poon village, with 217 villagers participating. The villagers were given professional training and input support, creating employment and income opportunities for local communities, enabling them to reduce expenses and increase income. The communities were also taken on a study visit to the Huai Hong Khrai Center in Chiang Mai Province. Sustainable practices were adapted to suit conditions in the area.

The project provides pigs, chickens, frogs, catfish, and tilapia to farmers to improve their quality of life. Participants are also encouraged to preserve the forest and environment by planting tree seedlings and building weirs to keep the soil hydrated. ThaiBev has closely monitored the progress of farmers and hopes that farmers in both villages, have food to eat or crops to sell to generate income of at least 3,000 baht per month on average.

Watershed Forest Restoration in a Steep Mountainous Area (The treeless mountain)
ThaiBev’s employees construct tilapia fish pond (claying waterproofing clothes) for a student lunch program for students at Baan Srikeereerak School.

This project promotes the policy of the Ministry of Natural Resources and Environment that requires the private sector to participate in the rehabilitation of watershed forests in deteriorated mountainous areas. The pilot projects are located in 13 provinces: Chiang Mai, Nan, Chiang Rai, Tak, Mae Hong Son, Phetchabun, Phitsanulok, Phayao, Phrae, Uttaradit, Lampang, Lamphun, and Loei. ThaiBev sponsored a project to restore watershed forests in Tak province at Sri Khirirak village, Chiang Thong Sub District, Wang Chao District. This is a small village with a population of 994 people, 189 households, and 157.38 rai of deteriorated forest.

Together with local communities, ThaiBev helps grow and care for tree seedlings, plant various economic crops gives educational training, and provides support for agriculture, livestock and fisheries. For example, mushroom cultures, chickens for eggs and meat, and tilapia-breeding skills for a student lunch program. The project also aims to reduce household expenses and promote livelihoods for the communities to be self reliant and sustainable, which in the next few years, green area would be expanded more than 50 rai.

The Recovery of Nature in the Environment Project, in “Celebration of the Auspicious Occasion of Her Royal Highness Princess Maha Chakri Sirindhorn’s 5th Cycle Birthday Anniversary”

ThaiBev supports the restoration of forest areas and biodiversity in a 17-rai plot of land at the Sirindhorn International Environmental Park in Phetchaburi province, under the Joining Forces for the Recovery of Nature in the Environment Project, in “Celebration of the Auspicious Occasion of Her Royal Highness Princess Maha Chakri Sirindhorn’s 5th Cycle Birthday Anniversary.” A budget of 2,978,400 baht was provided, as ThaiBev’s management team and volunteers joined to help with reforestation and mangrove rehabilitation, from 2015-2020.

In 2019, ThaiBev used drip irrigation systems and water spraying trucks to plant and water existing trees in a total area of 17 rai. Cow manure was added to these trees three times a year and the trees were cultivated to help increase their growth. The area is divided into two plots.

ThaiBev Plot 1
12 rai

A total of
299 trees
were planted to replace dead trees in the area

The survival rate was
98.29%


Study of tree biomass:
Based on a random sampling of woody perennial tree biomass, it was found that the total biomass was equal to
8.46 tons
per hectare Above-ground biomass was 7.2094 tons , and underground biomass (roots) was 1.2501 tons per hectare

Assessment of carbon sequestration in various biomass components
found that the woody perennial trees in a random sampling contained carbon deposits equal to
3.98 tons
per hectare
Soil sample analysis results
in a random sampling showed an acid-base condition of 7.7pH, and a salinity value of 0.09 dS/m, (a low level of salinity)
ThaiBev Plot 2
5 rai

A total of
45 additional trees
were planted

The survival rate was
100%


Study of tree biomass:
Based on a random sampling of woody perennial tree biomass it was found that the total biomass was equal to
9.89 tons
per hectare Above-ground biomass was 8.4266 tons, and underground biomass (roots) was 1.4592 tons per hectare

The assessment of carbon sequestration
found that carbon deposits averaged
4.65 tons
per hectare
Soil sample analysis
showed an acid-base condition of 7.1pH, and a salinity value of 0.37 dS/m (a low level of salinity)
2015 - 2019 Performance Summary
Forest restoration in
ThaiBev Plot 1

Planting of additional trees and maintenance of existing trees, a total of
6,088 trees were planted, including 39 species
The tree survival rate in
2019
92.65%
2018
98.29%
2017
98%
2016
97%




Biomass and carbon storage analysis of trees:
data collected in 2018 showed a total biomass of
8.46 tons per hectare
in 2019, the total biomass was
5.51 tons per hectare
Forest restoration in
ThaiBev Plot 2

Planting of additional trees and maintenance of existing trees; a total of
130 trees were planted, including 17 species

100%
survival rate, both additional and existing trees.



Analysis of biomass and carbon storage of trees:
data collected in 2018 revealed total biomass of
9.89 tons per hectare
in 2019, the total biomass was
4.37 tons per hectare
ThaiBev Helps Build a Model District for Good Living in Srisawat District, Kanchanaburi Province


Since 2017, ThaiBev’s Community Development Program and Pracharath Rak Samakkhee Kanchanaburi (Social Enterprise) Limited has helped to establish the Khon Na Suan Community Enterprise Community, with 22 members under autonomous local management by the community.

This project develops the community’s potential and economy through three working groups: agriculture, processing and community tourism.

ThaiBev’s Activities
2017

Samagae Reforestation activity planted trees
for soil, water, and forest conservation.
2018

Developed organic Karen pepper gardens as a learning opportunity
  • Coordinated with agencies to provide training
  • Received a budget from Project E5*
  • Defined management

ThaiBev employee volunteers helped locals build ten check dams
together in order to improve water management.



Supported Organic Farms
6 Rai


Planned an organic enterprise group

  • Defined roles
  • Defined work structure
  • Defined group regulations
  • Defined management

Community tourism
  • Helped with publicity by bringing Chuen Chai Thailand to do a report about the area that was broadcast on Amarin TV
  • Created local tourism programs together with the community
  • Published public relations brochures
  • Tested accommodations in the community
  • Supported hill tribe relations to preserve culture and promote tourism
2019



Training on packaging development provided
in cooperation with the Office of Small and Medium Enterprises Promotion (OSMEP)




Training provided for pickled fish processing
Coordinated with agencies to provide training




Training provided for sesame oil pressing techniques
Joint operation with Pracharath Rak Samakkee Kanchanaburi (Social Enterprise) Limited




ThaiBev employee volunteers
built a groundwater bank for organic farming


Agriculture


Participants who are interested in organic farming, but do not have land or are afraid to make the change from chemical farming, are encouraged to collectively cultivate a six-rai plot. A portion of the profits were allocated for the group. Currently, there are five people participating. The project is in the cultivation phase; no produce has been harvested yet.

Product Processing

ThaiBev along with the Office of Small and Medium Enterprises Promotion (OSMEP), is collaborating with the community to upgrade standards for processing products made from local raw materials. ThaiBev provides product-processing knowledge, investment planning, packaging, and branding design to increase the value of fish, chili, and sesame products.

Currently, there are ten OTOP registered processed products, with the name of the community and ThaiBev brands appearing on the product labels.


Community Tourism

Management of certain areas in the community have been enhanced by focusing on preserving culture, tradition, and the environment. A homestay to accommodate tourists was upgraded. Currently, there are three houses serving as homestays that accommodate 20 people, including one house raft that can accommodate more than 50 tourists.

Insight
Prapha Yangprayut

Chairperson of the Khon Na Suan Community Enterprise Group
“I am happy that ThaiBev came in to help us organize. Aside from generating income, it allows us to meet and take care of each other, unlike before when everyone would be doing their own job.”
Performance in 2019

Organized the community to establish
Khon Na Suan Community Enterprise Group

Accumulated income for the community totaled
150,000 baht

Participants earned an average of
6,800 baht per person
Clean Water for Community Project in Myanmar


An outstanding community development project sponsored by Grand Royal Group International Company Limited, a ThaiBev subsidiary, is taking place in Myanmar. The company foresees that central and southern parts of Myanmar will be facing water shortages. According to a 2014 World Bank report, more than 30 percent of the Myanmar population still do not have access to water. In some regions of Myanmar, the population faces severe water shortage problems. The Grand Royal Group initiated the Clean Water for Community Project in 2016 to help solve the problem, educate the communities about clean water, and allow them access to clean water sources for daily use. Even during a disaster, there are techniques to treat water in order to survive.

From April 2016 to September 2019, the Grand Royal Group donated more than 800 million kyats, or 15 million baht (referring to the exchange rate as of September 30, 2019) to build water reservoirs, water tanks, and water distilleries. The company provided equipment and personnel to maintain operations for ten projects. The Grand Royal Group has initiated five new projects between October 2018 and September 2019, including a project to build a groundwater reservoir in the Mandalay area, and four water treatment systems in the Ayarwaddy area, at a cost of 6.5 million kyats, or 120,000 baht. Since the project began more than four years ago, Grand Royal Group has built eight wells and 16 water tanks.

The five clean water treatment projects in ten locations benefit more than 40,000 people who are in need, covering 6,000 households and nine villages in Yangon, Mandalay, and Irrawaddy areas, resulting reducing the health problem of 840 cases caused by unclean drinking water.

2018-2019 Snapshot

Each clean water project can deliver up to
162,772 liters of water per day
for local communities, a total of
11,583,360 liters per year

More than
9,543 people or 2,080 households,
benefit from community clean water projects

Reduced a total of
48 cases of illness
caused by unclean water
Insight
U Htay Lwin

Villager from Tha Htay Kone, Meikhtila, Mandalay, Myanmar
“In the past, we had many people die from problems with water. Villagers used rainwater that they collected in the rainy season. But when the rainwater ran out, we faced the same problems all over again. In our area, there is only one pond located at the entrance to the village, and there are problems associated with using the pond water. For daily use, we had to get up at 2 AM to fetch the water. The projects that Grand Royal has done are very good and effective in helping the villagers in this area. Now we have no shortage of water.

Thank you very much for the help from Grand Royal, because a sustainable water supply is the most important thing for human life. I thank Grand Royal from my heart. We hope that you will continue to support this project in the future.”
Clean Drinking Water for Communities Project


OISHI Group Public Company Limited (“OSIHI”) is committed to look after the health of the people in the communities around the OISHI factories in order to build good relationships with the communities. The project responds to the needs of people in the communities who have been engaged via the factory’s outreach program. To help improve the drinking water production system for the surrounding communities, OISHI employs its skills and knowledge as an expert in the production of quality water and beverages in line with international standards.

The project focuses on schools, youth and people in the area around the school to have access to safe and healthy drinking water at no cost. It aims at helping everyone stay healthy and avoid illnesses caused by unclean drinking water.

This project started on August 3, 2018 at Ban Manichoti Samakkhi School in Wang Muang District, Saraburi Province. This year it was implemented at Wat Phuetnimit School in Klong Luang District, Pathum Thani Province on September 12, 2019, benefiting a total of 839 students, and 49 teachers and school employees. The project helps reduce the cost of drinking water by as much as 450 baht per person per month (average expense is 15 baht per day), equivalent to 4,795,200 baht per year. Furthermore, it can help reduce the risk of illness due to drinking unclean water, such as gallstones and gastrointestinal diseases, and thus preventing the occurrence of medical expense in the future.

After delivering the water system to the schools, OISHI monitors the water quality every two months to ensure that drinking water production systems remain safe and of good quality.

Disabled People’s Quality of Life Improvement Project


Sermsuk PLC, in collaboration with the Nakhon Ratchasima and Sisaket Employment Offices, Suranaree University of Technology, Internal Security Division 2, and the Army Region 2, implemented a project to promote and develop the quality of life of the disabled according to the Persons with Disabilities Empowerment Act, B.E. 2550 (2007) and its amendment (Vol. 2) B.E. 2556 (2013). From 2017 until now, Sermsuk has already implemented projects to benefit 167 people with disabilities in the northeastern region, with a budget of approximately 6,295,520 baht/year. The projects implemented are divided into two types, as follows:

1. Handicapped Career Building Project

Sermsuk, together with Suranaree University of Technology, organizes three career training courses for people with disabilities as appropriate for their physical condition, including raising hens, planting hydroponic crops, and growing mushrooms. The courses provide the disabled with vocational training by skillful experts ranging from technology transfer, teaching management methods, and household accounting to develop skills, knowledge, and abilities with an emphasis on the use of local resources for maximum benefit, as well as producing products that are safe for consumers and enabling the disabled to be self reliant. In addition, Sermsuk also supports expenses for constructing housing, laying hens, fodder, plant varieties, fertilizers and all necessary materials in all three courses. Experts from the university’s farm provide advice and monitor the operational results throughout the project period.

 
Achievements

49 people with disabilities participated in the employment program and have been able to use their skills and knowledge in their careers while generating an average income of 9,368.33 baht per person, per month.

 
2. Disability Employment Project

Sermsuk, together with the Nakhon Ratchasima and Sisaket Employment Offices, considers hiring disabled people with skills, readiness, knowledge and ability in administration, information technology and other office work skills suitable for their physical conditions to work in government departments and in the Internal Security Operations Command Region 2 Army Region 2 in twelve provinces in the northeast region with wages supported by Sermsuk throughout the contract period.

 
Achievements

118 people with disabilities participated in the career building project and increased their incomes by an average of 3,000 baht per person, per month. In the past, these people were unemployed, but now they are able to pursue careers according to the training.

The project provides opportunities for the disabled to pursue appropriate careers, so that they can use their full potential at work, develop learning skills and earn an income for themselves and their families. This allows them to achieve a better quality of life and to be treated equally by people in society. On November 8, 2019, the project was selected as one of the two outstanding projects by the Internal Security Operations Command Region 2 Army Division 2. Therefore, ThaiBev had the opportunity to meet with Prime Minister Prayut Chan-o-cha and present the project’s achievements.



Commitments and Achievements
The Right Livelihood Foundation presented the “Model for the Right Livelihood” award to Thanthip Sirinuphong, the director of ThaiBev’s Community Development Program. The award recognizes her role as the executive of an organization that promotes community development work and improves communities’ livelihoods. This community development work is based on the concept of developing a “role model.” Role models have been created for better living in three sub-districts: Phon Thong Sub-district in Chaiyaphum Province, Bua Yai Sub-district in Nan Province, and Khao Tan Sub-district in Surat Thani Province. Each sub-district is focused on a different type of economic growth, depending on the resources available to each region.

In addition, they foster strong community leadership to develop and manage their own areas sustainably.
Insight
Roybun Ratsamithet, PhD

Director and Deputy Secretary-General Utokapat Foundation under Royal Patronage of H.M. the King, ThaiBev’s partner in joint development of water resources, and improving livelihoods and quality of life.
What are the guidelines for cooperation with ThaiBev in joint operations

“The Foundation has introduced His Majesty King Bhumibol Adulyadej Borommanathbophit The Great’s principles and initiatives in the rehabilitation and conservation of soil, water and forest resources, and the Sufficiency Economy Philosophy. It is an extension of the royal initiatives to enable communities to be self-reliant and manage water on their own. The cooperation with ThaiBev extends the development of water resources; communities are provided with water for agriculture. ThaiBev supports agriculture in accordance with the New Theory concept His Majesty King Bhumibol Adulyadej Borommanathbophit The Great. It is hoped that the community will have continuous harvests throughout the year, resulting in food security. ThaiBev promotes economic stability for the wellbeing of people in the community and for their families to live happily together. This helps strengthen the social structure.”

How do you feel about ThaiBev and corporate social responsibility (CSR), water management, and water development, and its impact on the community and society

“Working with ThaiBev has been ongoing since the foundation was established in 2007. ThaiBev has always seen the importance of water management in accordance with the royal initiatives, and has continuously supported it. The Utokapat Foundation does not focus on organizing activities only from time to time – it emphasizes continuous development to ensure the community’s stability with water, food, and the economy. The Foundation hopes that the private sector will continue to work together to help develop water resources in accordance with the royal initiative of His Majesty King Bhumibol Adulyadej Borommanathbophit The Great, for greater social sustainability.”
Moving Forward
In order to work towards the development of a society that lives happily and sustainably, ThaiBev continues to support communities to live in accordance with the principle of selfreliance. Under the “A Good Community with Smile” project, ThaiBev is focused on projects in the following three areas:
  Local Economies
increasing at least two communitiy development projects around the factory and other model areas by 2020.

Water Management
increasing at least two more green areas and water management areas for communities by 2020.

Children and Youth
expanding various projects by 10 percent to give opportunities for children and youth to gain access to professional development and life skills training.
2019 Snapshot
Youth Participation

3,541 students
offered extracurricular life skills training

61 schools
were involved
Relief from the Cold and Other Assistance

Donation of 200,000
blankets annually
Blankets given
to people vulnerable to cold temperatures
in 15 provinces

More than
4,800 people
in ten provinces in the North/Northeast received blankets and were offered medical checkups from mobile medical units

Educational equipment and
60 computers
donated to
18 schools
Water Management

Built and repaired canal-connecting pipes along a total distance of
920 meters

Dredged the canal and constructed the cement structure on the side covering a total distance of
3,100 meters

9,564 rai
of farmers’ land benefited from the water management project
578 households
in four villages benefited from the water management project