ThaiBev Sustainability 2019

SUSTAINABILITY

SUSTAINABILITY REPORT 2019

ThaiBev Sustainability Approach

Caring for the Environment

Sharing the Value with the World

Caring for People

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Limitless Opportunities

GRI 404-1, GRI 404-2, GRI 404-3

ThaiBev creates opportunities for all employees under the concept of “Limitless Opportunities”, a proposition that has been communicated throughout the organization since 2015. Employees have the opportunity to achieve their goals in life, advance their careers, develop skills, enhance their capacities and grow with the organization. They can also build strong networks and relationships, as well as make a difference to the community and society.

Happy and progressive employees will unite to drive the company’s business and lead the organization to sustainable success.

Insight

Thapana Sirivadhanabhakdi

President and CEO

“As CEO, my job is to create value from growth and share the opportunities with our stakeholders, especially employees. It is truly our intention when we say there are limitless opportunities at ThaiBev.”

ThaiBev believes that the happiness and advancement of employees are important motivating factors for them to stay with the organization for the long term. Therefore, ThaiBev has continued to provide such opportunities to its employees. As a result, ThaiBev’s employees are capable and work happily with the organization for a long time. In addition, they are able to create the foundation for growth, strengthening the organization and its corporate culture.

ThaiBev has seven strategies of human capital management as follows:

Strategy 1:

Clear Structure and Roles

Arrange organizational structure to be in line with the roles and responsibilities to achieve the goals of Vision 2020 and for the future.

Strategy 2:

Market-oriented Compensation and Benefits

Continuously monitor changes in the job market and the needs of personnel to analyze compensation and benefits in order to create appropriate standards for ThaiBev Group’s companies.

Strategy 3:

Recognition-based Performance Management

Build a comprehensive employee performance management system and expand the system’s accessibility to meet the needs of employees in each age range. Provide fair evaluation as well as development planning to unlock employees potential enbling them to work towards their goals and achieve excellence.

Strategy 4:

Holistic People Development

Promote a learning culture for employees to develop their capabilities. ThaiBev uses the principle of developing employees’ potential, according to the 70: 20: 10 model for learning and development. It also promotes the development of digital technology skills, and the implementation of the individual development plan (IDP) as well as employee progress tracking.

Strategy 5:

Proactive Succession and Workforce Planning

Proactively prepare the readiness of employees and executives identified as potential successors to ensure semless transition and business continuity; enhancing sustainability of the organization.

Strategy 6:

Strategic Talent Acquisition and Onboarding

Develop the recruitment process and the selection of personnel with appropriate knowledge, ability, and skills to perform the job as desired by the organization as well as projects to reach and attract potential candidates to join the organization, especially new generations who are looking for an organization that is agile and capable of adapting in the digital age.

Strategy 7:

Engaging Corporate Culture

Build knowledge, understanding, and engagement by strengthening a sense of oneness through the global values of the ThaiBev Group, promoting employees’ continuous engagement to encourage appropriate behavior according to corporate values.

The business expansions in Thailand, Vietnam, Myanmar, Malaysia and Singapore, have increased limitless opportunities for ThaiBev Group’s employees. Therefore, ThaiBev has restructured the organization, adjusted and appointed highlevel executives in accordance with its business development plan as outlined in Vision 2020, and strengthened its business both domestically and internationally.

ThaiBev places importance on three key development themes: career-based people development, engaging employees through ThaiBev Global Values and performance management culture, and preparation for the future through digital experience.

Career-based People Development

Strategy 1

Strategy 4

Strategy 5

With a work structure divided into product groups and support groups, both domestically and internationally, ThaiBev designs work groups based on their functions, defines the career path, and determines the necessary competency of each position.

ThaiBev provides opportunities for employees to progress, plan a career path, and improve their capacities, while also recognizing their individual development plans. All of these actions systematically developed employees to be knowledgeable, capable and ready to advance their career.

Details are as follows:

1.	ThaiBev designed career paths for employees in 14 job families, covering 85 percent of the total workforce in 2019. ThaiBev plans to achieve career path design and development for a total of 22 job families in 2020.

22 Job Families are Defined as Foundation for Career-based Development

ThaiBev has continuously developed employee potential according to levels. The employees are divided into levels name as Spring & Streams, River and Ocean. ThaiBev uses the principle of developing employees’ potential, according to the 70: 20: 10 formula, including 70 percent learning by doing, 20 percent learning from others, and 10 percent learning from formal training.

The development program is divided into four types, as follows:

Core Competency
General Skills
Functional Competency
Leadership Competency

ThaiBev has applied the Kirkpatrick Four-Level Training Evaluation Model and implemented this leadership development program among those employees who have outstanding potential. Various job levels, from top executives to supervisors, are offered learning programs, with 167 employees participating in 2019.

Talent Development Program Framework

Individual Development Planning Process

3.	ThaiBev has created a holistic Individual Development Plan (IDP) with employees, covering 100 percent of employees from officer to executive level (4 and above) positions in ThaiBev, Oishi and Sermsuk. The company aims to improve weaknesses and enhance its strengths to prepare employees to advance to higher levels of their careers. In addition, ThaiBev also has a program to monitor the progress of individual development plans to ensure that those development plans are implemented seriously and achieve the goals
4.	ThaiBev has developed its employees according to Functional Training Programs. The company has applied the program after its design was completed to teach employees in three groups, including sales, finance and accounting, and human capital, creating opportunities for career development for more than 5,400 people in 2019.
5.	ThaiBev has designed employee development programs to introduce new skills for employees (reskill), including cross-functional skills development (multi-skill). This has resulted in ThaiBev employees taking on opportunities in other positions within the organization, averaging about 27 percent of the total positions open in 2019.
6.	ThaiBev has identified employees and prepared for succession in critical positions. In 2019, it was able to cover 94 percent of all critical positions. The continued business growth in ASEAN has contributed to create opportunities for employees to grow both at the domestic and regional levels. This also acts as a platform for the succession plan of employees so that they can develop themselves to become leaders of the organization now and in the future.

CRAFT YOUR CAREER JOURNEY

Employee Engagement through ThaiBev Global Values and Performance Management Culture

Strategy 2

Strategy 3

Strategy 7

Asia’s Best Employer Brand Awards 2018

ThaiBev’s focus is to create a culture that emphasizes excellence through performance management. During the past year, 100 percent of employees were evaluated as well as put through calibration, comparison and ranking of the evaluation scores of employees in the same group. This evaluation process is connected to the competitive compensation and welfare framework of ThaiBev, in particular, the link between performance and bonuses has been strengthened, increasing the compensation ratio related to performance excellence over the past year.

This increases the average rate of bonuses for those with excellent results up to three times the average of those with good contributions, an increase from the previous average of 1.5 times in the base year.

ThaiBev cultivates employee engagement within the organization through the Say-Stay-Strive* model, which aims to continually improve employee engagement. In addition to help to reducing the rate of resignations, the model also encourages employees to continuously create value for ThaiBev.
*Based on the concept of Aon Hewitt (2015)

ThaiBev Employee Engagement

% Employee Engagement
Year 2015-2016	Year 2017-2018
61	69

**Employee Engagement Survey for year 2019-2020 is executed during December 2019-February 2020

ThaiBev Employee Turnover Rate

Total employee turnover rate
FY 2015	FY 2016	FY 2017	FY 2018	FY 2019
14.8	12.86	12.87	11.48	11.52

not including new mergers & acquisitions in the food business

Best Companies to Work For in Asia Award

In addition, ThaiBev was awarded with the HR Asia Best Companies to Work for in Asia 2019 (Thailand Edition) from a survey of the top companies with the best corporate engagement and culture score of 2019 from HR Asia Magazine. This reflects ThaiBev’s direction and commitment to improve its management of human capital to become “ASEAN Best Employer”.

Dr. Pisanu Vichiensanth

Senior Executive Vice President Chief Technology and Engineering Group

“Reduce ego and selfishness, or even the urge to be a superstar, and let’s focus on mutual success like
One Goal, One Team”

Sithichai Chaikriangkrai

Senior Executive Vice President Chief Finance Officer

“All work can be accomplished if we cooperate and focus on the common good.
If the organization is successful, then we are successful.
I’d like to ask everyone to believe and strive to succeed. Don’t give up easily.”

Uaychai Tanthaopas

Senior Executive Vice President Chief Operating Officer Thailand

“If not you, who? If not now, when? It starts with YOU.”

ThaiBev has successfully launched ThaiBev Global Values represented by 3Cs for Collaboration, Creating Values and Caring for Stakeholders in order for employees in the Group to share and adhere to these values as guidelines to their behavior. The three important Global Values are collaboration, creating values and caring for stakeholders.

ThaiBev has improved its performance assessments approach to better reflect the actual performance of employees. The components of the assessment are defined as follows: Shared KPIs, Individual KPIs and Competency Assessments by using ThaiBev Global Values in varying proportions according to the level of the employee. As compared to the previous arrangement, ThaiBev has increased the number of employees receiving multi-dimensional assessments from manager level employees to employees at supervisor level. As a result, the percentage of multi-dimensional assessment more than doubled in 2019.

Preparation for the Future by Gaining New Digital Experience

Strategy 6

Preparing employees with digital literacy and skills to utilize digital technology innovations is an important aspect of ThaiBev’s human capital development as the organization is preparing its employees to be ready for the organizational transformations required in the digital age

Recognizing the huge impact of digital technology on the organization’s success, ThaiBev has invested in the development of the Beverest system, a global system for human capital management and development. The system can support the management of all employees’ information, both domestically and internationally. ThaiBev has also developed additional features in the Beverest Connect and Beverest Life applications to support its use among all employees in the organization. At present, there are 38,000 employees using the Beverest Connect system.

The Road To Digital Transformation: The key steps and competencies of digital literacy

Information Essentials

Able to identify and locate information
To store and organize information
To evaluate and to analyze information

Communication Engagement

Able to communicate in digital environments
To share resources through online tools
To collaborate through digital tools
To interact and participate through digital technology

Content Creation

Able to create and edit new content through various digital tools (from word, blog, image, video)
To use calculation functions & formulas to create additional contents

Security and Protection

Understand data privacy, security, and identity
Understand security measures and sustainable use
Able to secure data and digital identity

Problem Solving

Able to identify digital needs and resources to improve work efficiency
To innovate and create solutions through digital tools
To solve conceptual problems through digital means

The application is developed with the aim to improve digital literacy for employees that aligns with their current lifestyles and work behaviors via smartphones. To do that, ThaiBev categorizes the digital knowledge and understanding levels of the employees into five levels as follows:

Skills Level 1:

Access to information (Information)

Skills Level 2:

Communicate, interact, share information (Communication/Interaction)

Skill Level 3:

Create content through digital media such as document creation, calculation using formulas (Content Creation)

Skill Level 4:

Know how to secure data

Skill level 5:

Problem solving, know and understand what methods to use to help solve problems, improve work processes (Problem Solving)

The Beverest system also allows employees to express their opinions and express themselves creatively, as well as share knowledge, skills, and information to colleagues within the organization. At the same time, employees can learn by themselves, take responsibility for their own progress, recognize opportunities and benefits given by the organization, record training information and build a network of employees around the world. This system can be used either on a PC laptop or through a mobile phone without any limitations.

In addition, ThaiBev has developed the Thank You System, an application that can be used on smartphones. This system is included in the ThaiBev Life Suite under the concept “Make People Smile with Thank You.” This promotes a culture of appreciation, compliments and encouragement for fellow employees who exceed their duties within the departments, between departments or between business groups. This system is also an important mechanism to support unity as well as collaboration between departments, and also promotes corporate culture and oneness through the use of systems that drive businesses toward sustainable success in accordance with ThaiBev Global Values.

Insight

Dr. Agapol Na Songkhla

Executive Vice President and Chief People Officer

“ ThaiBev Group is moving towards 2020 as a leading ASEAN company with over 60,000 employees, of which more than half are new-generation employees or Gen-Y. The key to success is to increase the potential of employees in the digital age, joining together to energize the whole Group, especially to make ASEAN truly our home. In the past year, we have linked the Group experience with the Beverest system, a cloud system that develops the Group’s potential from the new generation to the top executives together throughout Thailand, Singapore, Malaysia, Vietnam, and Myanmar.

In addition, ThaiBev received the prestigious Best Companies to Work for in Asia 2019 from HR Asia Magazine, which analyzes international employee culture data. This is in line with ThaiBev’s Limitless Opportunities, which features opportunities for career growth, networking, and making a difference to society, both in Thailand and ASEAN.”

Moving Forward

Continue to strengthen employee engagement in the organization in line with the vision to become ASEAN’s best employer by 2025. Our aim is to attract quality personnel to join the organization and retain employees working in the organization, supporting ThaiBev to become a truly stable and sustainable total beverage leader in ASEAN. In addition, ThaiBev also sets the goal that by 2022, the employee engagement rate will be higher than 75 percent.
Increase the skills and competency in professional work. The aim is to increase the efficiency of the work processes of employees through the enhancement of current skills (Upskill) and the addition of new skills required in other work (Reskill).

This also includes the promotion of internal mobility (Mobility) by increasing cross-functional skills (Multi-Skill) according to the concept of limitless opportunities with at least 28 percent internal transfer success from total job openings.

This also includes digital literacy training so that they can support the organization’s transformation in the digital age and also utilize digital technology innovations to increase their own efficiency while also increasing the company’s business potential.
Expand the scope of multi-dimensional performance assessment from management to the supervisory level. The goal is to have at least 15 percent of all employees evaluated through this multi-dimensional performance assessment by 2020. This would further strengthen systematic development of leadership competency.
Consistently promotes and encourages a culture of continuous improvement and learning. This culture acts as a key foundation for the organization to grow. This year, for example, the ThaiBev Sustainability Academy (TSA) was established. Its mission is to institutionalize a knowledge-rich, continuously learning and competent global workforce and culture for ThaiBev when it comes to sustainability practices.

Over the past five years, ThaiBev’s Sustainability Development Centre of Excellence (COE) has built up a global network of Communities of Practice (CoPs), collective knowledge of good sustainable practices from internal and external practitioners, and DJSI membership experience since 2015. The plan is for TSA to leverage these experiences, resources and assets through its curriculum’s framework design and development, and through knowledge propagation.

Beyond ThaiBev, TSA programs are designed to include alliances and partnerships with corporate communities, sustainability luminaries and global subject matter experts in the exchange of knowledge and experiences through conferences, workshops and site visits. TSA represents another one of ThaiBev’s commitments to “Creating & Sharing the Value of Growth” for a stronger and better sustainable economy, community and planet, as aspired through Vision 2025.
Promote the use of the ThaiBev Thank You System to all employees both in the country and overseas. The target is to have at least 10,000 users by 2020.

ThaiBev’s Employee Learning Journey Guidelines For Your Learning Journey

ThaiBev 2019 Sustainability

ThaiBev
2019 Sustainability