ThaiBev Sustainability 2020

SUSTAINABILITY

SUSTAINABILITY REPORT 2020

ThaiBev Sustainability Approach

Caring for the Environment

Sharing the Value
with the World

Caring for People

Home / 2020 Sustainability Report / Sharing the Value with the World

GRI 103-1, GRI 103-2, GRI 103-3, GRI 203-1, GRI 203-2, GRI 413-1

Sharing the Value with the World

ThaiBev supports a wide range of social projects spanning education, health, sport, arts and culture, community development and Pracharath Rak Samakkee project. ThaiBev’s commitment to these projects has remained steadfast even during challenging times like the outbreak of COVID-19, and the company has launched new outreach initiatives not only aiming at society’s most vulnerable and needy, but also strengthening other aspects of development.

Caring and Sharing, Creating Values for Society

ThaiBev embraces the Sufficiency Economy Philosophy and the 17 UN SDGs. ThaiBev announced the mission of "Creating & Sharing the Value of Growth for a Sustainable Future" through initiatives and indirectly, in the country where ThaiBev operates. As ThaiBev’s products are consumed by people in communities, ThaiBev's main contributions are for improving the quality of life and well-being of people in various communities. Most of efforts are integral to ThaiBev's core business and provide mutually beneficial relationships for stakeholders. ThaiBev spent over 600 million THB in Education, Public Health, Sports, Arts & Culture, and Community Development. ThaiBev empowers people to have opportunities in reaching their potential, following its motto "ThaiBev, Always with you”.

Public Health

Education

Sport

Arts and Culture

Community Development

ThaiBev supported clean water initiatives, a watershed reforestation project in a mountainous area, greenhouse gas emission projects, a blanket donation project, scholarship grants, initiatives to generate local income through the Pracharath Rak Samakkee projects, and scholarship donation to Partnership School. ThaiBev also has been consistent in supporting arts and culture. Also initiated a project to alleviate the impact of PM 2.5 and COVID-19 to protect the wellbeing of ThaiBev’s employees and public.

ThaiBev plans its Corporate Social Responsibility projects in 3 phases: short, middle, and long terms. Many working groups within the company are also dedicated to community development projects. These efforts are divided into 2 parts:

1. At the corporate level, these comprise a department dedicated to community development programs; a group that aims to enhance quality of life and help the environment; an external affairs group; a Thai talent project group; a group supporting arts and culture and C asean; a group from human resources; and a group from corporate communications.

During mid-2019, the structure of corporate level CSR working groups have been organized to be more integrated. Weekly meeting has been arranged between project owners of 5 dimensional projects to discuss opinions, to seek connections between projects and to allocate budget for optimization. After this structural change, reduce overlapping works by half.
2. At the local level near factories, these comprise public relations and environmental groups in each factory, which work in coordination with those at the corporate level. Each agency coordinates and operates projects that it has initiated, or in cooperation with various groups in society. These community development programs based on local communities’ needs include 100% coverage of ThaiBev operations that may have directly or indirectly impact the surrounding communities.
In initiating projects and activities to benefit local communities, society, and the environment, ThaiBev abides by the following operating procedures:
- It regularly assesses social and environmental impacts through relationships and by inquiring about the opinions or needs of the target community, including those in the areas around factories, or around any facility or community close to the company’s products. This is done using questionnaires, via interviews and public meetings, and by communicating with community leaders, parent groups, school boards or through weekly informal meetings (coffee council).
- Projects are selected and operated together with stakeholders who are target groups to benefit the environment and community according to the objectives of the projects.
- Every project must have concrete measures to assess its results, including by measuring the satisfaction of the community and stakeholders, social and environmental impacts, and follow-up reports by relevant bodies such as government agencies, universities, and civil society groups.
- In 2020, the number of business partnership from various projects increased by 30% and committed not less than 5% annually which the key business partnerships are from education, Sports and social enterprises network.

ThaiBev has collaborated with communities and other local bodies to establish an occupational health and safety committee, a local community consultation committee, and groups of personnel tasked with handling complaints and monitoring operational impacts. Such groups include public relations and environmental specialist teams, which are required to constantly monitor and report their findings in order to ensure that ThaiBev’s corporate social responsibility initiatives fulfill the needs of the communities and help to promote sustainable societies.

ThaiBev’s social contribution activities are in line with the United Nations Sustainable Development Goals (SDGs), and they also reflect the essence of ThaiBev’s sustainable materiality.

End poverty in all its forms everywhere

1.5

By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters.

Projects		Indicators
ThaiBev Unites to Fight the Cold		Reduce the number of people affected by severe weather and natural disasters by more than 200,000 people/year* (The proportion of blanket recipients can be viewed on page157)*
Rehabilitation for Victims of Landslide and Mudslide Project, Ban Huai Khap Village, Nan Province		Support a construction budget for 60 households for local victims at Huai Khab. The total number of beneficiaries is 247 people.

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

2.4

By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality

Projects

ThaiBev’s Forest Conservation Program with the Huai Hong Khrai Royal Development Study Center to Improve Quality of Life in Nan Province

Indicators

Campaign to manage agriculture sustainably by applying knowledge for career development and by supporting production inputs to help over 150 farmers and generate an average income of 3,000 baht/month/farmer.

Ensure healthy lives and promote wellbeing for all at all ages

3.3		By 2030, end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases and combat hepatitis, water-borne diseases and other communicable diseases

3.4		By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and wellbeing

3.8		Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all

3.b		Support the research and development of vaccines and medicines for the communicable and non-communicable diseases that primarily affect developing countries, provide access to affordable essential medicines and vaccines, in accordance with the Doha Declaration on the TRIPS Agreement and Public Health, which affirms the right of developing countries to use to the full the provisions in the Agreement on Trade-Related Aspects of Intellectual Property Rights regarding flexibilities to protect public health, and, in particular, provide access to medicines for all

3.d		Strengthen the capacity of all countries, in particular developing countries, for early warning, risk reduction and management of national and global health risks

Projects Public Health Program		Indicators In 2020, ThaiBev supported medical research, medical equipment, and other basic health needs with more than 200 million baht.
Handover Alcohol to Fight COVID-19		ThaiBev supplied alcohol-based sanitizers to 470 education institutes within the network of ThaiBev nationwide. ThaiBev donated 1,090,000 liters of alcohol for the benefit of the public both domestically and internationally.
Surgical Mask and N95 Production and Handover		ThaiBev provided 130,000surgical masks to medical personnel in 9 hospitals across Thailand.
Prolab Vibhavadi Medical Technology Clinic		Prolab Vibhavadi Medical Technology Clinic provided COVID-19 examination to visitors a total of 15,970times.
Bhumirajanagarindra Kidney Institute Hospital		The Bhumirajanagarindra Kidney Institute Hospital successfully performed kidney transplants for 49 patients. (An increase of 81% in 2019)
Sport Development Program		More than 95,000 youth participated in ThaiBev’s sport development program. This program promotes physical and mental health, as well as quality of life for young children.

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

4.1	By 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes

4.3	By 2030, ensure equal access for all women and men to affordable and quality technical, vocational, and tertiary education, including university

4.4	By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship

Projects Scholarship Program Connext ED Beta Young Entrepreneur Partnership School		Indicators In 2020, ThaiBev awarded 1,183 scholarships from primary to tertiary level as well as occupational training to students and teachers in remote areas around the country. This is valued at more than 11 million baht More than 65,000children received career skill development training through the “Tam Ma Kha Khai” a simulated business project.
Princess of Naradhiwas Rajanagarindra Teachers Project		Added 9 quality teachers, with a focus on remote areas. (The total number of teachers supported to date is 72.)

Ensure availability and sustainable management of water and sanitation for all

6.1	By 2030, achieve universal and equitable access to safe and affordable drinking water for all

6.6	By 2020, protect and restore waterrelated ecosystems, including mountains, forests, wetlands, rivers, aquifers, and lakes

6.b	Support and strengthen the participation of local communities in improving water and sanitation management

Projects Water, Life, and Quality of Life Development Project		Indicators Expand the area that farmers can benefit from water usage from 9,564 rais to 9,573 rais. Restore Wang Pla Conservation Area by dredging a canal for a length of 680 meters.
Clean Water for Community of Grand Royal Group International Co., Ltd.		The Clean Water for Community Project of GRG can deliver water to more than 7,500 households in the community or more than 50,000 people in the underdeveloped area of Magwe District, Myanmar.
Rice Terrace Water Management Project		12 farmers in Kanchanaburi benefited from Rice Terrace Water Restoration and Management.
Clean Drinking Water for Younger Siblings		The Clean Drinking Water for Younger Siblings Project improved drinking water quality for more than 2,000 school students and personnel in Ayutthaya, Pathumthani, and Chonburi. The cost savings compared to buying clean drinking water was 9.6 million baht/year.

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

8.1	Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries

8.3	Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

Projects CONNEXT ED		Indicators Over 65,000 children and youth received vocational training to promote better earning opportunities for themselves and their families.
Beta Young Entrepreneur		Supported more than 170 new- generation entrepreneurs through the Beta Young Project
Sport Development		In 2020, more than 160 young professional athletes were created and more than 95,000 aspiring athletes received opportunities to turn professional.
Pracharath Rak Samakkee		The Pracharath Rak Samakkee Project can drive community operations for more than 1,100 projects, including some 85,000 households in 2020. The accumulative revenue for communities accounts for 1,246 million baht (increased by 29% from 2019 with a total accumulation of 543 million baht).
“A Good Community with Smile” Project for New Generation		The project to support the new generation in building a Community with a Smile generated income for more than 490 people in Chanthaburi, Ubon Ratchathani, and Kalasin. The total accumulative revenue for the communities was approximately 2.4 million baht.

Make cities and human settlements inclusive, safe, resilient, and sustainable

11.4

Strengthen efforts to protect and safeguard the world’s cultural and natural heritage

Projects

Preserving and Creating National Culture Project

Indicators

In 2020, ThaiBev provided more than 95 million baht to preserve Thai culture and inspire projects related to Thai culture.

Conserve and sustainably use the oceans, seas, and marine resources for sustainable development

14.2	By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans

14.5	By 2020, conserve at least 10 per cent of coastal and marine areas, consistent with national and international law and based on the best available scientific information

Projects Mangrove Forest Preservation Restoration		Indicators Mangrove reforestation (Mangrove and Samae) of more than 300trees around Khlong Kluea, Tambon Nong Mai Daeng, Amphoe Mueang Chonburi. This equals the conservation of coastal areas of approximately 2 rais.
Reforestation in People’s Heart according to the King’s Philosophy		Conserve around 50 rais of mangrove forest around Bangkhuntian by planting an additional 10% of mangrove trees, or around 4,000 trees. This also helped to preserve more than 70 species of marine animals.

Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity lost

15.1	By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains, and dry lands, in line with obligations under international agreements

15.2	By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally

15.4	By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in order to enhance their capacity to provide benefits that are essential for sustainable development

15.5	Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species

Projects The Recovery of Nature in the Environment Project (Sirindhorn Reforestation Project) ThaiBev’s Forest Conservation Program with the Huai Hong Khrai Royal Development Study Center to Improve Quality of Life		Indicators Promote sustainable management of all kinds of forests, reduce deforestation, and revive encroached-upon forests of more than 668 rai. In 2020, the growth rate and survival ratio of trees equaled 99.79%.
Reforesting Green Area around ThaiBev Factory Project		Plant trees to increase green area for more than 4,000 trees. The species include perennial plants such as Payoong, Pradupa, Takianthong, Sadao, Mahogany, Khoon, etc.
ThaiBev Helping Community and Elephants through COVID-19		Support 153 farmers nationwide to provide 31,500 kilograms of oversupplied fruits such as mango, longan and papaya to feed 775 underfed elephants.

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development Goals

17.9	Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the Sustainable Development Goals, including through North-South, South-South and triangular cooperation
17.17	Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Projects

Pracharath Rak Samakkee Project

Indicators

Support partnership between the public sector, private sector, civil society sector, academic sector, and the public to establish Pracharath Rak Samakkee Social Enterprise Co., Ltd. covering all 76 provinces, with 337 million baht initiating 1,161 projects.

ASEAN Youth Showcase 2020: Advancing Social Entrepreneurship

Promote 3 sustainability projects for 3 countries in ASEAN regions, including Indonesia, Malaysia, and Philippines.

ThaiBev is committed to promote self-reliance in income generation of local communities & youth population. Key initiatives are

(1) Pracharath Rak Samakkee & Chumchon Dee Mee Roy Yim Social Enterprises have networks in 76 provinces, 22 districts and 1 at national level. These networks improve local communities’ quality of life, based on the principle of Sufficiency Economy Philosophy, through 3 local business areas namely agriculture, value-added activities, and community-based tourism. This effort result in the establishment of nearly 100 social enterprises nationwide which are in operation today.

(2) Connext ED brings applied education to the curriculum of schools in local areas in order to provide students with skills in trading and entrepreneurial skills.

(3) Beta Young Entrepreneur project and the Education Institute Support Activity (EISA) provide opportunities and funding for students in university level to explore business ventures driving entrepreneurial spirits.

Business Benefit KPI	Social / Environmental Benefit KPI
Created corporate brand exposure with more than 70,000 students across country through Connext ED program.	ThaiBev's social enterprise network, Pracharath Rak Samakkee and Chumchon Dee Mee Roy Yim, increased household income in the community by 1.4 billion THB, with more than 96,000 beneficiary households (cumulative number since start of project).
Enhanced corporate brand awareness through community development programs. As 80% of stakeholders feedback from survey was impressed by ThaiBev's CSR activities.	Increased number of social enterprises supported by ThaiBev by at least 20% of the base year of 2019.
Grew potential recruitment pool for ThaiBev staff by 1,000 people annually through Beta Young and EISA programs.	More than 70,000 students and people in communities engaged in trading skill development program.
Increased in number of business partnership by 30% in 2020, committed not less than 5% annually.	Connext ED program increased income of student groups by more than 1.5 million THB over 1 year period.
Engagement score of employees, who responded positively to community projects, increased by 20% from the base year of 2018.	Beta Young entrepreneur program generated 40 new businesses with around 5 million THB income to students participating in the project annually.

In the mist of the COVID-19 pandemic, ThaiBev established the production lines of necessary protective items such as alcohol spray, alcohol gel, alcohol pads, surgical masks, N95 masks. ThaiBev established the ThaiBev Situation Room (TSR) to manage operation and its stakeholders under the pandemic in order to ensure business continuity. ThaiBev also established the COVID-19 RT-PCR Test Center with both technologies from Korea Bioneer Group and Switzerland Roche Cobus System. In addition, ThaiBev accelerated its sports promotion program to boost the Physical and mental health of its employees and general public in order to maintain necessary immunity level. ThaiBev also launched V- Boost which is a product that contains Vitamin C and Beta-Glucan to help with the immunity of the consumer.

Business Benefit KPI	Social / Environmental Benefit KPI
Brand Awareness: Strengthened corporate brand awareness. In 2020, ThaiBev’s awareness rate raised up to 100% as wesupported various stakeholders during the COVID-19.	Funded medical research, medical equipment, and other basic health needs with more than 200 million THB. ThaiBev donated 1,090,000 liters of alcohol worth 119.9 million THB. With the Thai Red Cross Society and Ministry of Interior, ThaiBev distributed alcohol-based products to 79 public hospitals, 470 education institutes, and various communities. ThaiBev established production lines and procured necessary machinery that could produce 3 million surgical masks and 1.2 million N95 masks on a monthly basis to distribute to needed frontline agencies.
Business Partners: Enhanced more than 1,500 business partners and stakeholders by supporting all sectors and stakeholders in preventing COVID-19.	More than 95,000 youth participated in ThaiBev's sport development programs to promote physical and mental health as well as quality of life for children.
Crisis Management: The emergence of COVID-19 pandemic has inspired us to build new capabilities to maintain our business operation by launching ThaiBev Situation Room (TSR) to ensure business continuity. ThaiBev also established the COVID-19 RT-PCR Test Center to prevent the spread of COVID-19 to the business operation.	Maintain number of youth groups participating in ThaiBev’s sport programs in local communities. In 2020, ThaiBev offered football skills training opportunities in 68 provinces.
Business Continuity: ThaiBev led the establishment of the Thailand Supply Chain Network (TSCN) in order that companies within the value chain can have the platform to share and help each other in this pandemic.

ThaiBev believes that partnership is crucial in creating collaboration to empower people to brainstorm, innovate, and manage crisis together.

1) National Level:
ThaiBev founded Thailand Supply Chain Network (TSCN) and Thailand Sustainability Expo (TSX). ThaiBev also initiated Win Win War Thailand to promote social entrepreneurs. In 2020. ThaiBev ran Thailand Corporate Sustainability Symposium and Thailand Sustainability Forum: Fostering Social Enterprises. These collaborations expanded ThaiBev's network on sustainability in Thailand.

2) International level:
Through C asean, ThaiBev collaborated with the US Embassy to host the Young Southeast Asian Leaders Initiative Summit to foster youth leadership across ASEAN. ThaiBev collaborated with London School of Economics to host a sustainability event and also actively participates in the UN Global Compact. ThaiBev continues to support C asean Consonant music ensemble to demonstrate an example of collaboration across ASEAN.

Business Benefit KPI	Social / Environmental Benefit KPI
Brand Awareness: Enhanced ThaiBev's corporate image in sustainability with more than 2.4 million people through Win Win WAR TV program.	Increased in number of social entrepreneurs in ThaiBev's social enterprise network to more than 2,400.
ThaiBev enhanced collaboration with 78 sustainability partners and raised brand awareness from 11,539 people participated in Thailand Sustainability Expo 2020 (TSX 2020).	Increased in number of startups and social enterprises under ThaiBev support by 100% of the base year of 2019.
Business Continuity: ThaiBev led the establishment of the Thailand Supply Chain Network (TSCN) reaching out to approximately 2,000 suppliers in order that companies within the value chain can have the platform to share and help each other in this COVID-19 pandemic.	Provided launch support to 3 social entrepreneurs from ASEAN countries with estimated of 300 beneficiaries.
Created brand awareness with more than 100 future leaders across 10 ASEAN countries.	Managed and promoted C asean Consonant with musicians from all 10 ASEAN nations to enhance cultural collaboration ASEAN and foster engagement between ThaiBev and the ASEAN Secretariat.

TYPE OF ACTIVITIES & CONTRIBUTIONS

Type of Contribution	Total Amount (BAHT)
Cash contributions	487,979,244.29 Monetary Units
Time: employee volunteering during paid working hours	4,103,026.33 Monetary Units
In-kind giving: product or services donations, projects/partnerships or similar	163,899,576.97 Monetary Units
Management overheads	12,331,683.21 Monetary Units

ThaiBev 2020 Sustainability

ThaiBev
2020 Sustainability