ThaiBev Sustainability

Definition

The implementation of capacity building program in supply chain management for ThaiBev’s suppliers. The development focuses on building supplier knowledge and awareness on sustainable development and to ensure that suppliers have the knowledge and skills to integrate sustainability into the procurement processes and understand the ESG impacts from upstream to downstream in supply chain.

Scope

100% of significant suppliers

Output

Corrective actions from significant suppliers with high ESG risks and development plan for significant suppliers

100%

of suppliers with high risk have corrective action plan

Corrective Action Request

Suppliers that are identified with high risks or have non-compliance issues from the supplier assessment are required to submit correction action plan within the designated timeline. Their corrective action implementation is also monitored and reviewed by ThaiBev auditor. ThaiBev will also provide feedback and support to suppliers during their corrective action implementation where required.

100%

of significant suppliers covered in supplier training and knowledge sharing program

Supplier Training and Knowledge Sharing Program

ThaiBev organizes training and knowledge sharing program for suppliers via Thailand Supply Chain Network (TSCN). The program is organized on a regular basis with the aim to develop supplier capability and increase supplier’s awareness on sustainable development. The program includes both sustainability and business topics.

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100%

of local critical suppliers participating in ThaiBev Business Partner Award

Business Partner Award Program

ThaiBev invites critical suppliers and strategic suppliers to participate in Business Partner Award Program annually to recognize the suppliers with an outstanding performance. The Business Partner Award criteria include quality, commercial, delivery, project development, and sustainability. Sustainability is weighted 20%.

Supplier Training and Knowledge Sharing Program

Climate-related Engagement with Other Partners in the Value Chain
ThaiBev collaborates with Thailand Supply Chain Network (TSCN) co-founders to implement the supplier development program by sharing the know-how and expertise from the leading companies in sustainable development practices via Thailand Sustainability Academy (TSA).

In 2023, the TSA successfully organized the first training classes on the topic of “The Power of One: Taking Action to Reduce GHG Emissions" Strategic suppliers with high GHG emission intensity and contribution are invited to participate in these classes, i.e., packaging and key agricultural commodity suppliers. The objectives of the training is to equip suppliers with the knowledge to identify, measure, and reduce greenhouse gas emissions within their operations. More than 70 attendees from 49 companies have participated.

Thailand Sustainability Academy (TSA)

Strengthening the knowledge for sustainable business:

The Power of One: Taking action to reduce GHG Emissions

BJC / SCG / TBC

Climate Change Risk Assessment

TU / SCG / TBC

Biodiversity

GC / CPF

Sustainable Sourcing

TU / ThaiBev

Green Finance

BBL

Social Impact Assessment

ThaiBev

Pilot Class with TSCN Founders

13-14 February 2023 at CW Tower

Module 1: The Power of One: Taking Action to Reduce GHG Emission: Batch 1

28 March 2023 at C asean, QSNCC

Module 1: The Power of One: Taking Action to Reduce GHG Emission: Batch 2

22 June 2023 at Room 205, QSNCC

ESG BENCHMARK FROM SUPPLIER ASSESSMENT

ThaiBev prioritize the enhancement of Environmental, Social, and Governance (ESG) performances throughout the supply chain, and provide access for all active suppliers to ESG benchmark from ESG Program results (Supplier Assessment result). ThaiBev ensure that suppliers are aware about the existing gaps in their ESG practices and are equipped with the necessary knowledge to improve their performance in these areas. This collaborative approach allows ThaiBev to foster transparency, encourage responsible practices, and drive positive change across our supply chain, ultimately contributing to a more sustainable and socially responsible business ecosystem.

Supplier Category	Corporate Governance	Environmental Management	Social Sustainability	Supplier Management	Audit and Certification	Carbon Footprint Reduction and Tracking	Water Consumption	%Score
1. Agricultural Commodity	100%	88%	85%	92%	67%	58%	100%	95%
2. Chemicals	67%	88%	65%	83%	92%	58%	100%	86%
3. Construction	75%	67%	67%	50%	50%	38%	N/A	58%
4. Machinery	63%	67%	100%	50%	100%	63%	N/A	70%
5. Material Handling	75%	67%	100%	100%	100%	38%	N/A	78%
6. Office & Factory Supply	63%	67%	25%	50%	25%	50%	N/A	48%
7. Packaging	100%	100%	100%	100%	100%	83%	100%	98%
8. Petrochemical	100%	75%	85%	75%	83%	58%	60%	89%

MAJOR NON-COMPLIANCES

ThaiBev identifies non-compliance issues founded and sets out mandatory requirements for the assessed suppliers to submit corrective action plan within the designated period if non-compliances are found. ThaiBev monitors the progress of the corrective actions and shall suspend, exclude, and/or terminate any suppliers who fail to resolve major non-compliances within the agreed window of time until further actions are properly taken and satisfy ThaiBev’s requirements.

Supply Chain Management	Sustainable Supply Chain Management Governance	Procurement Landscape
Supplier Screening	Supplier Assessment	Capacity Building Program in Supply Chain Management


Read More Information about SUPPLY CHAIN MANAGEMENT in Sustainability Report 2023