ThaiBev Sustainability 2021

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Human Rights

ThaiBev strictly protects human rights, including those of its stakeholders, and complies with national and international laws, such as the Labour Protection Act B.E. 2541, the Universal Declaration of Human Rights, the United Nations’ Guiding Principles on Business and Human Rights, and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.

Additionally, ThaiBev has identified approaches for human rights management throughout the value chain, which include:

Respect Human Rights by treating all business units equally.
Proactively manage Human Rights issues through the Human Rights due diligence process.
Responsible and committed to instilling all parts of the organization to highly respect the human rights of all sectors, especially ThaiBev’s stakeholders, as well as to supervise all business activities from being involved in human rights violations.
Communicate Human Rights practices to all stakeholders and provide transparent and effective channels to file complaints.
Provide knowledge, training, and support for employees, suppliers, and customers to strictly respect the Human Rights of all stakeholders in their businesses.

Human Rights Due Diligence Process

The objective of human rights due diligence is to identify, prevent, mitigate adverse human rights impacts that occur from ThaiBev’s business activities throughout value chain, as well as to identify and assess how ThaiBev addresses those impacts and remedies affected stakeholders.

1. POLICY COMMITMENT

ThaiBev is committed to respecting the human rights of all stakeholders. As such, the company operates in line with international human rights principles and labour standards, including the United Nations Universal Declaration of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. ThaiBev expects all executives and employees in its businesses, including those in its subsidiaries, joint ventures, and new business relations (i.e. through mergers and acquisitions), as well as suppliers and business partners, to respect the human rights of all stakeholders to ensure that all are respected equally. In doing so, strict compliance with the company’s Human Rights Policy is compulsory for all stakeholders.

Key human rights aspects covered in the company’s Human Rights Policy and Statement include discrimination and harassment, forced labour and child labour, freedom of association, equal remuneration, working conditions, and workplace safety and health. All ThaiBev stakeholders must comply with these aspects according to laws and regulations and aim to satisfy them with the highest possible standards.

Through human rights due diligence, ThaiBev consistently inspect human rights risks in all of its business activities, including direct impacts from own operations and impacts that ThaiBev may be involved in or have a role in supporting in every area of operation. ThaiBev has also established various policies and management controls to support implementation of human rights management.

Examples of such policies and management controls include:

Occupational Health, Safety, and Environment Policy
Employee Code of Conduct
Anti-Corruption Policy
Whistleblowing Policy
Environmental Policy
Risk Management Policy
Supplier Code of Practice
Investment Guideline

Furthermore, ThaiBev has tracked, monitored, and assessed its human right risks, as well as ensure its whistleblowing and complaint channels to gather issues and concerns related to human rights violations. Results gathered from these channels will be used to inform improvements, and reported in the human rights performance section of the annual sustainability report.

For further details of Human Rights policy and statements revised in 2020 please visit:
Human Rights Policy | Human Rights Statement

2. Assess Actual and Potential Impacts

(Human Rights Risk Assessment)

The human rights risk assessment covered 100% of ThaiBev’s operational sites which were categorized by business activities:

Main business activities: Sourcing, Production, Distribution and Logistics, Marketing and Sales, and Post-consumption Packaging Management
Supporting business activity: Human Resources

Also the human rights risk assessment covered 100% of ThaiBev’s Tier 1 suppliers.

The human rights risk assessment covers actual and potential human rights issues as follows:

Forced labor
Human trafficking
Child labor
Freedom of association
Right to collective bargaining
Equal remuneration
Discrimination and harassment
Working conditions and OHS
Related issues

The human rights risk assessment covered employees and at-risks/ vulnerable groups. Vulnerable groups considered:

Women
Children
Indigenous people
Migrant workers
Third-party employee
Local Communities
LGBTQI+
Disabled people

Human Rights Risk Assessment

(Methodology)

Human Rights Issue Identification

Identify all relevant human rights issues to ThaiBev’s own operations, value chain, and new business relations by considering impact to business and potential rights holders effected
Identify affected groups of stakeholders, including vulnerable people i.e. women, children, indigenous people, migrant labour, third-party contracted labour, local communities, LGBTQI+ and disabled people

Inherent Risk Ranking

Ranking inherent risks (risks without controls/ measures) of identified human rights issues.

Residual Risk Ranking

For high inherent risk, ranking residual risks (risks with existing company’s controls/ measures)

Risk Prioritization

Prioritizing human rights salient issues, referring to identified human rights issues with high residual risk.

Human Rights Issue Identification

Identification of relevant human rights issues, which are related to ThaiBev’s business activities and value chain, is completed through peer benchmarking of companies in a food and beverage sector, revisiting ThaiBev’s past salient human rights issues, and updating global trend of human rights including COVID-19 implication.

The scope of ThaiBev’s relevant human rights are shown below.
Human Rights Risk Mapping

Labor Rights

Working conditions
Health and safety
Freedom of association and collective bargaining
Discrimination and harassment
Illegal forms of labor

Community and Environmental Rights

Community health and safety
Community standard of living
Community access to water and sanitation
Land Aquisition and resettlement

Customer Rights

Consumer health and safety
Customer data privacy
Customer discrimination

Supplier Rights

Supplier working conditions
Supplier health and safety
Supplier discrimination and harassment

STEP 2 & 3 OF METHODOLOGY: RISK RANKING

The assessment of human rights risk level for inherent and residual risks was conducted using Human Rights Risk Assessment Criteria to determine the significance of the human rights.

There are 2 assessment comprises of the Axis-X and the Axis-Y.

The Axis-X is the assessment level of Likelihood.
The Axis-Y is the assessment level of Severity.

Level of Likelihood and Severity can be illustrated in Human Rights Risk Matrix.

Human Rights Risk Assessment Criteria

Severity Level	Scale (Level of impact)	Scope (Numbers of affected people)	Remediability (Capacity in remediation)
Critical (4)	Significant impact to health condition and danger to life, which can cause physical disability or fatality	Impact to all stakeholders in the relevant group (e.g. all community members, all employees and all suppliers)	Impossibility to remediate relevant stakeholders and/ or taking longer than 5 years to remediate (> 5 years)
High (3)	Impact to health condition and safety, which can cause loss time injury	Impact to most stakeholders in the relevant group	Possibility to remediate relevant stakeholders by taking time around 3 - 5 years
Medium (2)	Slight impact to health condition and safety, which can cause minor injury with need of medical treatment from doctor (no loss time)	Impact to some stakeholders in the relevant group	Possibility to remediate relevant stakeholders by taking time around 1 - 3 years
Low (1)	No impact to health condition and safety – only first aid case	No impact to relevant group of stakeholders	Possibility to remediate relevant stakeholders by taking time less than 1 year

Likelihood Level	Description
Very likely (4)	Occurs all the time
Likely (3)	Occurs frequently
Unlikely (2)	Occurs rarely
Very unlikely (1)	Almost never

Human Rights Risk Matrix

STEP 4 OF METHODOLOGY: RISK PRIORITIZATION

HUMAN RIGHT RISK ASSESSMENT RESULT

ThaiBev prioritized its human rights salient issues which are the human rights issues at risk of the most severe negative impact through ThaiBev’s activities and business relationships.

In 2021, ThaiBev has 4 following human rights salient issues.

Employee Health and Safety
Employee Working Conditions
Employee Discrimination & Harassment
Supplier Health and Safety

Towards 2025 and Beyond

Continue the human rights due diligence process by conducting annual examinations.
Establish an Employee Wellness Channel to receive complaints from employees who feel their human rights have been violated.
Review human rights policy to ensure it is in line with relevant laws and regulations, and push it to achieve the highest possible standards.
Create knowledge and understanding about human rights through training and workshops for employees in Thailand and overseas, and for its contractors and suppliers. The company organizes annual training sessions on human rights as part of its new employee orientation program.
Expand the company’s Human Rights Assessment to include its overseas operations, creating group-wide synergy in preventing adverse impacts from human rights risks.
Improve the three human rights risks identified in the human rights due diligence process: employee health and safety, employee working conditions, and community health and safety. In addition, ThaiBev is committed to preventing risks that might occur in the future by implementing measures to ensure safety and occupational health in the work environment, and the wellbeing of employees in all regions. The company also organizes safety activities for employees throughout the ThaiBev group, as well as a project to train paramedics and rescue experts at operation sites and communities near the company’s factories.
On-site risk assessments, including for human rights issues, for all of its critical Tier 1 suppliers. The company also collaborates with key suppliers to mitigate human rights risks that could arise from its non-Tier 1 suppliers.

Achievements

of ThaiBev’s operational sites
have carried out human rights risk and impact assessments

ThaiBev has human rights issues.

of ThaiBev’s operational sites
have been identified to feature a high level of human rights risk (salient issues).

of ThaiBev’s operational sites or 196 sites
196 sites that are linked with human rights risks have mitigation measures and rehabilitation processess in place.

2021 Human Rights Salient Issues

3. INTEGRATE FINDINGS AND POTENTIAL IMPACTS

(1)	Employee Health and Safety

Potential Human Rights Issues

Work-related accidents (e.g. injury from machinery and equipment, falling of height, injury from sharp object)
Non-compliance with safety measures (e.g. not putting on PPEs)
Transportation accidents (e.g. road accident, falling off vehicles, vehicle colliding with obstacles, vehicle rollover)
Spread of COVID-19 pandemic/ risk of infection

Mitigation Measure

Health and Safety Certification (e.g. OHSAS 18001)
Occupational Health and Safety Committee
Safety manuals for all employees
Provide PPEs and safety training for employees working in the operation
Supervisors strictly manage employees to comply with safety measures in the work area.
Testing workers’ level of alcohol and readiness before transporting
Intensive refreshing training on safe transportation
Regular maintenance of transportation vehicle
TOMS application
COVID-19 testing for all employees
Provide COVID-19 protective measures (e.g. mask, alcohol gels, swap test)

(2)	Employee Working Conditions

Potential Human Rights Issues

Work-related accidents (e.g. injury from machinery and equipment, falling of height, injury from sharp object)
Non-compliance with safety measures (e.g. not putting on PPEs)
Transportation accidents (e.g. road accident, falling off vehicles, vehicle colliding with obstacles, vehicle rollover)
Spread of COVID-19 pandemic/ risk of infection

Marketing and Sales: Event (PG)

Working during late night

Mitigation Measure

Health and Safety Certification (e.g. OHSAS 18001)
Occupational Health and Safety Committee
Safety manuals for all employees
Provide PPEs and safety training for employees working in the operation
Supervisors strictly manage employees to comply with safety measures in the work area.
Testing workers’ level of alcohol and readiness before transporting
Intensive refreshing training on safe transportation
Regular maintenance of transportation vehicle
TOMS application
COVID-19 testing for all employees
Provide COVID-19 protective measures (e.g. mask, alcohol gels, swap test)

Marketing and Sales: Event (PG)

Increasing commission payment
Social security
Financial supports during COVID-19

(3)	Employee Discrimination & Harassment

Potential Human Rights Issues

Discrimination against employees with different opinions (e.g. religion, political views, bribery)
Discrimination against employees who have no relationship closely with supervisor
Harassment by using anonymous mail/ letter/ message with unconstructive purposes

Mitigation Measure

Code of Business Conduct
Human Rights Policy
Complaint/ Whistleblowing Policy
Improve working environment & increase communication among employees via team building activities
Create a channel/ forum for employees can contribute publicly ideas/ inputs on business
Officially declare that the company does not encourage anonymous mail/letter/ message with unconstructive purposes

(4)	Supplier Health and Safety

Potential Human Rights Issues

Work-related accidents (e.g. injury from machinery and equipment, falling of height, injury from boiled water, chemical splash in eyes)
Non-compliance with safety measures (e.g. not putting on PPEs)
Spread of COVID-19 pandemic/ risk of infection

Mitigation Measure

ThaiBev Supplier Code of Practice
Work permit system for suppliers/contractors
Provide PPEs and safety training for suppliers/contractors working in the operation
Supervisors strictly manage employees to comply with safety measures in the work area.
Safety morning talk with suppliers/contractors
Provide COVID-19 protective measures (e.g. mask, alcohol gels, swap test)

4. TRACK AND COMMUNICATE PERFORMANCE

ThaiBev is committed to conduct a regular review of human rights due diligence, as well as to report its human rights performances on annual basis through the annual sustainability report or ThaiBev website. ThaiBev will track violation of human rights that stakeholders may experience from communication channel. Therefore, in order to mitigate adverse impacts and to provide appropriate remedies to affected stakeholders, all stakeholders are encouraged to report such violation through communication channel given below.

Communication Channel

Thai Beverage Public Company Limited
14 Vibhavadi Rangsit Road, Chomphon,
Chatuchak, Bangkok 10900
Telephone 02 785 5555
Fax: 02 785 5882
http://www.thaibev.com

5. Remediate Adverse Impacts

ThaiBev realized that its business activities may potentially cause/ contribute or have linkage with human rights violation of relevant stakeholders. ThaiBev is thus committed and strived to mitigate such potential risks and violation. To ensure fulfillment of such commitment, human rights risk assessment will be conducted within appropriate timeframe to identify situation of human rights violations in ThaiBev’s operational sites. Additional mitigation measures will be therefore established with objectives to remediate and reduce possibility of human right violations, which may be caused or endorsed by ThaiBev’s business activities. In addition, monitoring, reporting of performance and reviewing of policy commitment regarding to human rights will be annually conducted in order to maximize effectiveness of ThaiBev’s human rights management.

In 2021, there was no human rights violation case. Therefore, there was no remediation measure taken.

Freedom of association

ThaiBev employees are covered by Welfare Committees in which committee members are elected from the employee body to represent themselves in negotiations with the company. Welfare Committees are set up at all major operations across the country and covers all of ThaiBev business units. The Committee has a role to provide advice and welfare management, results in strengthened relationships and understanding between the Company and its employees, this will provide motivation and encouragement for their work. It serves as a guideline for continuous improvement of welfare, enabling the Company and employees to discuss openly and sincerely.

Initiate Human Rights Due Diligence Process by conducting annual examinations
Establish an Employee Wellness Team as an important channel to receive complaints from employees whose human rights are violated
Review human rights policy with a determination to in pursuant to relevant laws and regulations as well as setting higher standards
ThaiBev plans to create knowledge and understanding about Human Rights by communicating and providing ongoing trainings and workshops for its employees both in Thailand and overseas, as well as for its contractors and suppliers. The company organizes annual training on Human Rights topics in its new employee orientation program.
Improve the three human rights risk issues identified in the Human Rights Due Diligence Process in 2019, which are employee health and safety, employee working conditions, and community health and safety. employee working conditions, and community health and safety. In addition, ThaiBev is committed to preventing risks that may occur in the future by implementing measures to ensure safety, occupational health in the work environment, and the wellbeing of employees in all regions continuously and extensively. It will also organize safety activities for employees throughout the ThaiBev Group, as well as a project to develop paramedics and rescue experts at operation sites and communities surrounding factories.
ThaiBev performs on-site risk assessment, including for Human Rights issues, for all of its critical tier 1 suppliers. The company also collaborates with these key suppliers to mitigate Human Rights risks that could arise from its non-tier 1 suppliers.