Sustainability Approach
ThaiBev embraces King Bhumibol Adulyadej’s Sufficiency Economy Philosophy (SEP),
in tandem with the United Nations Sustainable Development Goals (UN SDGs),
to establish its sustainable development strategy.
These principles are incorporated into guidelines to push forward business operations in a responsible manner for society and all stakeholders.
These principles are incorporated into guidelines to push forward business operations in a responsible manner for society and all stakeholders.
Business operations should be founded on the basis of the middle path as exemplified
in the three major parts of the Sufficiency Economy Philosophy, which are:
Moderation
- Work following one’s abilities and potential
- Avoid extremes
- Exercise financial discipline
Reasonableness
- Assess the reasons for every action affecting stakeholders
- Create real, authentic value
Prudence
- Manage risk
- Prepare for future impacts or changes
The conditions for these three principles to arise are the use of Knowledge and Virtues
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Knowledge
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Virtues
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The Sufficiency Economy Philosophy consists of three principles: Moderation, Reasonableness, and Prudence. Abiding by these three principles, based on the foundations of knowledge and virtue, allows the company to remain stable and sustainable through the currents of globalization and change, leading to balanced progress in all four dimensions: Economy, Society, Environment, and Culture.
At the same time, with its sustainable development strategy, ThaiBev is confident that it will be able to be self-sustaining and develop limitless opportunities for the business and society as a whole.
The two frameworks, SEP and UN SDGs, emphasize utilizing knowledge, experience, and rationale to achieve steady growth, while reducing environmental impacts and promoting human capital development. Moreover, SEP and UN SDGs are consistent with ThaiBev’s Vision 2020 to become a stable and sustainable Asean leader. Hence, ThaiBev prioritizes engaging and establishing good relationships with all stakeholders so that sustainable growth can be attained for all.
At the same time, with its sustainable development strategy, ThaiBev is confident that it will be able to be self-sustaining and develop limitless opportunities for the business and society as a whole.
The two frameworks, SEP and UN SDGs, emphasize utilizing knowledge, experience, and rationale to achieve steady growth, while reducing environmental impacts and promoting human capital development. Moreover, SEP and UN SDGs are consistent with ThaiBev’s Vision 2020 to become a stable and sustainable Asean leader. Hence, ThaiBev prioritizes engaging and establishing good relationships with all stakeholders so that sustainable growth can be attained for all.
ThaiBev’s Corporate Sustainability Structure
Sustainability Management
ThaiBev’s Corporate Sustainability Development (CSD) Committee is responsible for the consideration, planning, policymaking, and execution of sustainable development measures, so that they are consistent with the overall direction and strategies as determined by the Board of Directors or Executive Committee. In addition, the Corporate Sustainability Development Working Team acts as a support for the CSD Committee. The CSD Working Team consists of representatives from various units who are assigned the following tasks: determining efficiency indices in terms of the environment, safety, and occupational hygiene; support planning and monitoring in the realm of sustainability management; maintaining constant communication with the CSD Committee; and participating in the assessment process of the Company’s sustainability. Within the assessment process the CSD Working Team is responsible for reviewing the resulting key issues around organizational sustainability, analyzing and presenting to the CSD Committee for approval, and subsequently to the Executive Committee for final approval of the key issues surrounding sustainability.
ThaiBev has participated in the Dow Jones Sustainability Indices (DJSI) Corporate Sustainability Assessment for four consecutive years, and has been listed in the DJSI World index for the second year running (2017 and 2018). The company was recently recognized as Global Beverages Industry Leader, achieving the highest score compared to its peers in the beverages sector, and is the first Asian company to be named a sustainability leader in the beverage industry in 11 years. It is one of 60 companies from 24 industrial sectors to be ranked as an Industry Leader, and has also been listed as DJSI emerging market member, an honor received by the top 10 percent sustainability leaders in each industry, for three consecutive years. This remarkable achievement is a result of continuous effort to become a leading sustainable organization. The company’s sustainability performances have developed in leaps and bounds, and it has been recognized as an Industry Mover in RobecoSAM Sustainability yearbooks 2017-2018, for two years in row.
ThaiBev’s Corporate Sustainability Development (CSD) Committee is responsible for the consideration, planning, policymaking, and execution of sustainable development measures, so that they are consistent with the overall direction and strategies as determined by the Board of Directors or Executive Committee. In addition, the Corporate Sustainability Development Working Team acts as a support for the CSD Committee. The CSD Working Team consists of representatives from various units who are assigned the following tasks: determining efficiency indices in terms of the environment, safety, and occupational hygiene; support planning and monitoring in the realm of sustainability management; maintaining constant communication with the CSD Committee; and participating in the assessment process of the Company’s sustainability. Within the assessment process the CSD Working Team is responsible for reviewing the resulting key issues around organizational sustainability, analyzing and presenting to the CSD Committee for approval, and subsequently to the Executive Committee for final approval of the key issues surrounding sustainability.
ThaiBev has participated in the Dow Jones Sustainability Indices (DJSI) Corporate Sustainability Assessment for four consecutive years, and has been listed in the DJSI World index for the second year running (2017 and 2018). The company was recently recognized as Global Beverages Industry Leader, achieving the highest score compared to its peers in the beverages sector, and is the first Asian company to be named a sustainability leader in the beverage industry in 11 years. It is one of 60 companies from 24 industrial sectors to be ranked as an Industry Leader, and has also been listed as DJSI emerging market member, an honor received by the top 10 percent sustainability leaders in each industry, for three consecutive years. This remarkable achievement is a result of continuous effort to become a leading sustainable organization. The company’s sustainability performances have developed in leaps and bounds, and it has been recognized as an Industry Mover in RobecoSAM Sustainability yearbooks 2017-2018, for two years in row.
Stakeholder Engagement
ThaiBev has established guidelines for appropriate stakeholder engagement, with an emphasis on continuously promoting creative engagement with all stakeholders through various activities and communication channels; various demands, opinions, concerns, and suggestions may be voiced. For each group of stakeholders, the frequency of communication varies according to operation plans. Therefore, the information received is useful in helping to determine the strategy, direction, planning, and guidelines for business sustainability development.
Employees
Engagement Channels
- Messaging (SMS)
- LINE Application: LINE @ “We are ThaiBev Group”
- Facebook fan page
- ThaiBev Intranet
- Annual Meetings (Annual Executive Meeting, Labor Practice Committee Meeting, Employee Benefits Committee Meeting, Occupational Health and Safety Committee Meeting, Trade Union Meeting, and Functional Meeting)
- Suggestion Box
- Roadshows to meet with various stakeholders, such as “Core Values Roadshow” and “Vision 2020 Roadshow”
- Annual Sustainability Survey
- Employee satisfaction and engagement survey
- Beverest Connect application
- Jam application, a messaging channel exclusively for ThaiBev employees
- Work safety
- Flexible working arrangements
- Employee Benefits
- Charities and other projects that benefit society
- New products developed according to consumer needs
- Developing employee skills
- News about the company
- Company activities and management engagement
- Success and awards received by the Company
- Internal activities
- Volunteering for various events and projects
- Limitless Opportunities
- Consumer Health, Safety and Well-Being
- Safety, Occupational Health and Work Environment
- Social Sustainability
Suppliers
Engagement Channels
- Meetings with suppliers
- Annual Sustainability Survey
- Business Partner Conference
- Supplier Award Program
- Vision of management and business practices
- Supplier Code of Practice
- Maintenance of quality standards, delivering services and sustainability in the business operations of suppliers
- Cooperation between the company, suppliers and their suppliers in managing risk throughout the supply chain
- Developing suppliers’ business potential
- Innovation and development of packaging to reduce environmental impact
- Governance, Risk and Compliance
- Sustainable Sourcing
- Eco-friendly Packaging
- Innovation
- Energy and Climate Change
Customers
Engagement Channels
- ThaiBev EXPO 2018
- Annual Customer Meeting
- Customer Training and Development Workshops
- Business Development Activities
- Annual Business Review Activities
- Annual Customer Factory Visit
- Agent “The next gen” Project
- Annual Sustainability Survey
- Consumer health and safety
- Clear business policies
- Transparency in business operations
- Responsibility to consumers
- Involvement in business planning
- Training to enhance skills and knowledge
- Building cooperation and networks to create value for society
- Flexibility in trade to meet market demands
- Customer Relationship Management
- Consumer Health, Safety and Well-Being
- Governance, Risk and Compliance
- Sustainability Approach
- Limitless Opportunities
Consumers
Engagement Channels
- Public events and marketing promotion activities via sales channels
- Social media channels such as Facebook fanpage, website, LINE application
- Annual Sustainability Survey
- Surveys of consumer behavior and opinions on products
- Product quality and safety
- Fair and appropriate product prices
- Responsible servicing and product presentation
- Environmental management responsibility
- Transparency in business operations
- Charities and projects that benefit society
- Consumer Health, Safety and Well-Being
- Water Stewardship
- Waste Management
- Energy and Climate Change
- Governance, Risk and Compliance
Investors
Engagement Channels
- Annual Shareholders Meeting
- Quarterly meetings
- Annual Factory Visits
- Investor Roadshows
- Annual Sustainability Survey
- Transparency in information disclosure
- Business performance
- Disclosure of relevant business information to shareholders and investors
- Product management and development
- Governance, Risk and Compliance
- Consumer Health, Safety and Well-Being
Communities
Engagement Channels
- Activities with communities surrounding factories
- Interviews with community representatives
- Field visits and meetings with communities to follow up progress on joint projects
- Monthly and quarterly meetings with community representatives
- Survey of opinions with questionnaires
- Annual Sustainability Survey
- Creating jobs or promoting occupations in communities
- Promoting public health and well-being in communities
- Local economic development
- Skills development in sports, music and arts
- Reviving natural resources and the environment, managing and reviving water sources
- Assessment of impact on communities
- Promoting the environment and caring for it in communities
- Educational promotion in communities
- Reducing inequality in society
- Safety in temples, schools and communities
- Human rights, including labor rights and consumer rights
- Developing Communities and Society
- Pracharath Rak Samakkee Project
- Education Development
- Public Health Development
- Athletic Development
- Preserving and Promoting Art and Culture
- Water Stewardship
Regulators
Engagement Channels
- Hearing and giving opinions on the enforcement of laws by state agencies
- Training in various courses arranged by state agencies or their certified nominees
- Annual Sustainability Survey
- Participating in giving opinions on various draft laws
- Tax transparency
- Labor welfare and safety
- Human rights and legal labor practices
- Legal advertising and sales
- Appropriate management of society and the environment
- Governance, Risk and Compliance
- Consumer Health, Safety and Well-Being
- Safety, Occupational Health and Work Environment
- Limitless Opportunities
- Customer Relationship Management
- Water Stewardship
NGOs
Engagement Channels
- Annual Sustainability Survey
- Consumer Health and Safety
- Legal business operations
- Social Responsibility
- Consumer Health, Safety and Well-Being
- Governance, Risk and Compliance
Inputs from Stakeholders
In 2018, ThaiBev carried out an annual sustainability survey, consulting all eight stakeholder groups. A third-party expert was tasked with conducting interviews and sending surveys to a sample group of stakeholders. The results from the stakeholder engagement process were used to assess key issues in corporate sustainability development.
Insights from Sustainability Experts
M.L. Dispanadda Diskul
Chief Executive Officer, Mae Fah Luang Foundation
“When a company decides to give something back to society, it should be
done in a way that is consistent with the company’s established expertise and experience. For instance, an agribusiness company should allocate its personnel and laboratories to help improve the quality of agricultural products, educating farmers on how to reduce toxins in the soil, and conduct integrated farming.
They could also advise on new techniques that farmers can utilize to develop
and improve their produce. This could generate more income and bring about sustainability to the community. A beverage company, for instance, could use
its know-how to help improve water quality, and in return utilize those water resources in the manufacturing process to produce products with even higher quality, while also contributing to the improvement of natural resources and healthier communities.
ThaiBev, as a large private company, has always played a major role in society. And its leading role in sustainable development has recently been proven after being named the beverage industry leader in the Dow Jones Sustainability Indices (DJSI). This recognition is a demonstration of the far-reaching vision of the company’s executives as well as the dedication and efforts of its staff. So I hope that ThaiBev will be able to drive changes while also encouraging other companies to take responsibility and pay more attention to sustainable development.”
ThaiBev, as a large private company, has always played a major role in society. And its leading role in sustainable development has recently been proven after being named the beverage industry leader in the Dow Jones Sustainability Indices (DJSI). This recognition is a demonstration of the far-reaching vision of the company’s executives as well as the dedication and efforts of its staff. So I hope that ThaiBev will be able to drive changes while also encouraging other companies to take responsibility and pay more attention to sustainable development.”
Brendan Edgerton
Director, Circular Economy
World Business Council for Sustainable Development (WBCSD)
“The WBCSD brings together leading companies to share best practices and collaborate to create a world in which 9 billion people live well within the means of the planet. This collaborative approach is central to integrating the Circular Economy across company value chains, a global sustainability megatrend that is highly material to Food & Beverage companies.
As such, WBCSD encourages engagement of multiple stakeholders and partnerships, such as The Consumer Goods Forum and Alliance to End Plastic Waste. Further, in order to integrate the Circular Economy more fully into its value chain, we advise on three key areas: water consumption and water regeneration, bio-economy (efficient use of agricultural goods and effective use of residuals) and packaging (exploring sustainable packaging design and effective partner in end of life management). By taking these actions, ThaiBev has the opportunity for impact at scale, and to create a legacy of sustainable leadership.”
As such, WBCSD encourages engagement of multiple stakeholders and partnerships, such as The Consumer Goods Forum and Alliance to End Plastic Waste. Further, in order to integrate the Circular Economy more fully into its value chain, we advise on three key areas: water consumption and water regeneration, bio-economy (efficient use of agricultural goods and effective use of residuals) and packaging (exploring sustainable packaging design and effective partner in end of life management). By taking these actions, ThaiBev has the opportunity for impact at scale, and to create a legacy of sustainable leadership.”
Ani Kavookjian
Sustainable Business and Finance, Bloomberg L.P.
“The Company’s Executive Committee must have understanding of climate change issues and the transition to a low-carbon society, with its associated risks and opportunities. In this, the executive committee must manage the company’s survival and growth in many climate scenarios. Besides this, ThaiBev should prioritize the presentation of information on sustainability issues in formats which investors can understand and make comparisons.
Moreover, if the company shows support for TCFD (Task Force on Climate-related Financial Disclosure), ThaiBev can attract investors who are interested in companies who prioritize long-term goals. Investors are now increasingly interested in companies from emerging/developing markets.”
Moreover, if the company shows support for TCFD (Task Force on Climate-related Financial Disclosure), ThaiBev can attract investors who are interested in companies who prioritize long-term goals. Investors are now increasingly interested in companies from emerging/developing markets.”
The Process for Assessing Key Sustainability Issues
In 2018, ThaiBev assessed key sustainability issues through comparisons with its industry peers and by considering data on sustainability trends worldwide. Surveys found that there were no significant changes
from 2017.
1. Identification of Issues
ThaiBev selects sustainability issues that are consistent with business operations, based on the information gathered from executives and experts from every business unit and relevant units, and from interviews of external experts on sustainability in the context of food and beverage business sustainability. This involves learning about global trends and changes, sustainability issues of other companies in the industry, as well as a survey of stakeholders on corporate sustainability issues held this year.
2. Issue Prioritization
ThaiBev takes the identified issues and ranks them by priority, considering each issue’s impact on business operations, and the opinions of all stakeholders about the possible impact on sustainability. Which issues get prioritized is determined by ThaiBev and its stakeholders.
3. Validation
The Corporate Sustainability Development Working Team cross-checks the comprehensiveness of the key corporate sustainability issues, and presents the completed list to the Corporate Sustainability Development Committee for review and approval. It then presents the issues to the executive committee for final approval and implementation.
4. Establishment of Reporting Boundary
ThaiBev determines the scope of the reporting of all 17 key issues, based on the information collected from various agencies and most relevant stakeholder groups, for the information to be comprehensive and accurate, and in order to address the issues of interest to ThaiBev’s stakeholders.
5. Continuous Development
ThaiBev is committed to continuously operating under the sustainable development framework, by taking into account stakeholders’ perspectives on key issues in the development of appropriate and fair sustainability practices.
Key Issues in ThaiBev’s Sustainable Development
Economic
- Innovation
- Packaging
- Responsible Consumption
- Sustainable Supply Chain
- Corporate Governance & Code of Business Conduct
Environmental
- Energy Efficiency and Climate Change
- Water Management & Water Conservation
- Waste Management
Social
- Consumer Health & Safety
- OHS & Wellbeing
- Human Rights
- Corporate Citizenship & Philanthropy
- Health and Nutrition Products
- Human Capital Development and Talent Attraction and Retention
- Collaboration & Networking to Create Social Value
- Customer Relationship Management
- Product Labeling & Marketing & Communication
ThaiBev’s Risk Management Criteria
The Sustainable Development Working Team and experts from relevant agencies held a workshop with the Corporate Sustainability Development Committee to seek endorsement on the 17 material issues of ThaiBev and its subsidiaries, which were selected from the materiality assessment process.
Summary of Key Issues in This Report
