ThaiBev Sustainability

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

In ensuring that all products and services are sourced using standardized and environmentally and socially responsible procurement processes throughout the value chain, ThaiBev enforces sustainable sourcing policies and upholds the highest procurement standards, while pursuing high-quality service in delivery, in addition to supplier assessment processes and supplier engagement activities. ThaiBev has developed strategies and systems to manage its supply chain and ensure business continuity, and to avoid negative economic, social and environmental impacts.

ThaiBev’s ESG program in supply chain management is structured with formalized framework and is governed by supply chain management strategy and sustainable sourcing policies and guidelines. ESG considerations are fully integrated into procurement, in line with the ISO 20400 Sustainable Procurement Guideline.

Click here to view ThaiBev’s Supply Chain Management Framework

Oversight of Sustainable Supply Chain Management Program

ThaiBev’s Sustainable Supply Chain Management Structure

Role	Responsibilities	Meeting Frequency
Board of Director (BoD)	Oversee ThaiBev’s procurement and sustainable supply chain management. Make decision and approve ThaiBev’s key raw material procurement and sustainable supply chain management-related issues upon receiving report from the GPC.	Quarterly basis
Group Procurement Committee (GPC)	Design ThaiBev's supply chain management strategy consists of five pillars: visibility, synergy, integrated risk management, centralized management, and standardization. Plan the raw material purchases of the companies in the plant groups aligned with the production plan and prevent procurement risks that may affect the production process of the companies in the plant group. Determine the purchase process and quality of raw materials by integrating sustainability factors into all aspects of our procurement process and requiring suppliers to comply with the Supplier Code of Practice and undergo strict supplier screening, which includes environmental, social, and governance (ESG) criteria and quality assurance processes. Selects quality raw materials for our productions through a socially and environmentally responsible procurement process in line with top global standards. Report the approval of the purchase of raw material to the Executive Committee on a quarterly basis.	Quarterly basis
President and CEO	Oversee ThaiBev's supply chain management strategy implementation and monitor the progress of supply chain management-related goals and targets. Assign responsibilities within ThaiBev functions to implement ThaiBev's supply chain management strategy.	Quarterly basis
Group Procurement Working Team	Execute the procurement operation from supplier screening to supplier performance evaluation. Identify procurement risks both in commercial and sustainability-related aspects and propose mitigative actions Implement ESG program in supply chain management and ensure supplier's compliance with ThaiBev's sustainability policies and guidelines. Identify significant suppliers (critical suppliers and high-risk suppliers) and implement supplier management and development plan Monitor and report market situations and procurement decisions to the Procurement Committees. Determine and propose category-specific sourcing strategy to the Group Procurement Committee	Monthly basis

Key ESG Issues in Supply Chain Management

ThaiBev has formalized process to identify key ESG issues in supply chain management. The key ESG issues are prioritized from the procurement perspective based on peer’s ESG risks issues in supply chain management, the indicators from recognized ESG standards, e.g., S&P Global, EcoVadis, and ThaiBev’s material issues. The key ESG issues are integrated in supplier screening, supplier assessment, and supplier development processes.

ThaiBev’s Sustainable Sourcing

Applicable Policies & Guidelines	Environmental				Social	Governance
Applicable Policies & Guidelines	Environmental Guideline	GMO Guideline	Sustainable Agriculture Guideline	Packaging Guideline	Human Rights Policy	Supplier Code of Practice
Direct Material
Packaging
Agricultural Commodity
Petrochemical
Chemical
Indirect Material
Construction
Spare Part
Office & Factory Supply
Machinery
Marketing Material
IT & OA Equipment
Material Handling
Service

OVERALL PROGRESS IN

Target achieved

In procress

Sustainability Commitments	2021	2022	2023	2024	Target	Target Year
Compliant Supplier Number of active suppliers complying with ThaiBev Supplier Code of Practice	100%	100%	100%	100%	100%	2024
Local Procurement Number of suppliers whom ThaiBev procures goods and services from operating in Thailand	97%	96%	96%	97%	95%	2024
ESG Risk Assessment Number of active suppliers undergo sustainability risk assessment	100%	100%	100%	100%	100%	2024
Critical Supplier Audited Number of critical tier 1 and non-tier 1 suppliers being assessed on site by third-party or ThaiBev auditors	100%	100%	100%	100%	100%	2024
Responsible Sourcing Volume of key agricultural raw materials responsibly sourced i.e. malt and hops, sugar, broken rice, tea leaves, and palm oil.	100%	100%	100%	100%	100%	2025
Third-party Risk Assessment Number of active suppliers being assessed and examined on sustainability risks by a third party or using third-party risk database	100%	100%	100%	100%	100%	2025
Strategic Suppliers Having Supplier Code of Conduct Implemented Number of strategic suppliers having their own supplier code of conduct implemented to their tier 1 suppliers (ThaiBev’s non-tier 1 suppliers)	56%	75%	83%	88%	100%	2030

MANAGEMENT INCENTIVE AND COMPENSATION

Management Level	Type of Incentive	Incentivized KPIs	Details
Executives Officers	Monetary	Sustainable supply chain	ThaiBev sets Corporate KPIs that reflect our CEO, executive, and employee compensation. ThaiBev’s Corporate KPIs relating to Sustainable supply chain. We define and categorize the criteria for achieving Corporate KPIs into 5-level. Compensation and bonuses will be allocated to relevant executives and employees, with related targets to 100% of strategic suppliers to have their own supplier code of conduct implemented by 2030.
Business Unit Managers	Monetary	Sustainable supply chain	ThaiBev sets Corporate KPIs that reflect our CEO, executive, and employee compensation. ThaiBev’s Corporate KPIs relating to Sustainable supply chain. We define and categorize the criteria for achieving Corporate KPIs into 5-level. Compensation and bonuses will be allocated to relevant executives and employees, with related targets to 100% of strategic suppliers to have their own supplier code of conduct implemented by 2030.

SUPPLY CHAIN MANAGEMENT

Group Procurement Shared Service

A shared-service approach enables ThaiBev to consolidate procurement across business units, fostering transparency and ensuring adherence to high ESG standards throughout our supply chain.Through this centralized model, ThaiBev enhances operational efficiency, streamlines processes, and strengthens oversight.

Sustainable Sourcing

ThaiBev is committed to sourcing responsibly by prioritizing suppliers who align with our sustainability values. By embedding ESG considerations into sourcing decisions, we aim to reduce Scope 3 GHG emissions and support sustainable agricultural practices. This pillar also emphasizes establishing partnerships with suppliers who are dedicated to lowering environmental impacts, promoting ethical practices, and enhancing resource efficiency.

Strategic Partnership Management

Recognizing the importance of strong supplier relationships, ThaiBev focuses on building long-term partnerships. We engage proactively with suppliers to drive sustainability improvements, provide development opportunities, and ensure alignment with ThaiBev’s goals for reducing emissions and advancing social responsibility. Such partnerships allow ThaiBev to create shared value and resilience across the supply chain.

SUSTAINABILITY OBJECTIVES

Scope 3 GHG Emission Reduction

ThaiBev prioritizes suppliers and products with high GHG emission intensity as the focus of our engagement and action plans to reduce Scope 3 GHG emissions. By working closely with these suppliers, we aim to track, report, and implement strategies to reduce their carbon footprints. This approach reflects ThaiBev’s commitment to achieving Net Zero Scope 3 GHG emissions by 2050.

Supplier Development and Collaboration

We engage in continuous development programs with our suppliers, focusing on building capabilities in sustainable practices. ThaiBev offers training, resources, and support for suppliers to meet ESG standards, and recognize outstanding achievements through ThaiBev Business Partner Award program.

Sustainability Integration into Supplier Selection

ThaiBev integrates sustainability criteria into supplier selection, ensuring that ESG considerations are embedded as part of procurement decisions. This starts from supplier on-boarding where suppliers, are required to comply with the ThaiBev Supplier and Business Partner Code of Practice and undergo supplier screening and supplier assessment respectively. Our comprehensive pre-qualification processes include sustainability assessments, third-party certifications, and on-site audits to identify and engage with suppliers who align with our environmental and social standards.

ESG PROGRAM IN

ThaiBev assesses all aspects of risks in its supply chain including both commercial and sustainability risks. Sustainability is taken in to considerations and embedded in every step in the procurement process starting from new supplier registration, supplier qualification, tendering and awarding, supplier performance evaluation, and on-going monitoring. Additionally, for effective long-term risk management, ThaiBev is committed to develop supplier capability continuously and looks for collaboration opportunities with its critical suppliers to manage ESG impacts in the supply chain.

NEW SUPPLIERS		EXISTING SUPPLIERS
1 Registration Supplier Code of Practice Supplier screening Desk assessment	2 Pre-qualification Comprehensive sustainability assessment Third-party certification requirement On-site assessment	3 Bidding & Award Bidding condition with ESG requirements Contract clause with ESG requirements	4 Evaluation Annual supplier performance review Desk assessment On-site assessment Assessment based on recognized ESG standards	5 Capacity Building Corrective action request Supplier training & knowledge sharing program Business Partner Award	6 Collaboration Non-tier 1 supplier management Business continuity risk management ESG impact management

ISO 20400

Mr. Udomsak Rungcharusup, Managing Director of Pan International (Thailand) Co., Ltd., received ISO 20400 certificate for sustainable procurement from Mr. Jongrak Rojpalasatean, EVP of Management System Certification Institute (Thailand) (MASCI) operating under the umbrella of the Foundation for Industrial Development (FID).

Pan International (Thailand) Co., Ltd., a corporate purchasing and trading company for ThaiBev Group, has received ISO 20400 Sustainable Procurement certificate, marking ThaiBev Group as the first beverage company in Thailand to receive such certification. To be qualified for this certificate, a company’s process of procuring products and services from its critical suppliers and strategic suppliers with high procurement volume and/or supplying key materials has been evaluated.


Read More Information about Supply Chain Management in Sustainability Report 2024

ThaiBev's Sustainability

ENVIRONMENTAL

SOCIAL

GOVERNANCE & ECONOMIC