ThaiBev’s ultimate goal for risk management is to respond efficiently to challenges through our journey to become Stable and Sustainable ASEAN Leader in the beverage and food business. We have developed and implemented our sustainability and risk management framework, which comprises:
ThaiBev’s Sustainability and Risk Management Framework
1. Governance Structure
It starts from the Board of Directors, and involves a range of committees at Corporate, Product Group and Functional Group levels. The Sustainability and Risk Management Committee (“SRMC”), consisting of distinguished advisors to the SRMC, independent directors and senior managements, acts as the main communication point where all identified strategic operations and ESG related risks, impacts and opportunities are gathered for further company-wide assessment and management.
2. Holistic Sustainability and Risk Management Process
The sustainability and risks are managed proactively at all levels across the
organization. It includes monitoring, analyzing and evaluating trends and risk factors in ESG, peers’ actions, as well as managing uncertainties throughout the value chain. Reporting and evaluating the results of sustainability and risk
management actions is undertaken at least on a quarterly basis.
3. Sustainability and Risk Management Culture
This culture is created through trainings and other engagement activities for executives and employees throughout the organization. Employees can report potential risks or any concerns to their supervisor in the first instance, or through the
recommended channels such as whistleblowing@thaibev.com. In addition, ThaiBev has integrated sustainability and/or risk management metrics that are weighted at 10–15% of both our executives’ and employees’ annual performance assessment.
2022 Highlight
Risk Identification and Assessment to Risk Management Strategy
ThaiBev has integrated material sustainability issues into our holistic risk management
process by identifying and prioritizing risks under three categories: Strategic, ESG
(Environmental, Social, and Governance) and Operational, potential downsides and opportunities in relation to the company’s strategic objectives. We also give importance to emerging risks which may impact us on a mid- or even long-term basis, and require us to adopt effective mitigations, adapt our strategy and/or business model, including monitor and analyze changes in risk level periodically.
Towards 2025 and Beyond
Traditional risk management must be expanded to include the following resilience management by planning for the unexpected, building up response capabilities in advance, and facilitating adaptation, as well as speeding recovery from the adverse events or disruptions.
1. Financial Resilience: It represents a balance of short- and longer-term financial spending, a solid capital position and sufficient liquidity.
2. Operational Resilience: It is to maintain production capacity, supply chain and delivery mechanisms that is adaptable to changes in demand without compromising quality.
3. Technological Resilience: It covers investment in strong technological infrastructure, continuous implementation of IT projects on a variety of scales to keep pace with customer needs, competitive demands, and regulatory requirements, as well as uplifting employees’ digital technology skills.
4. Organizational and Reputational Resilience: ThaiBev is open in listening to and communicating with stakeholders, and building engagement and collaboration with business partners, to anticipate and address societal expectations.
5. Business-Model Resilience: The business models are developed and adaptive to dynamic and uncertain environments, significant shifts in consumer demand, competitive landscape, technologies, and regulatory terrain applicable to ThaiBev’s business.
6. Climate Resilience: It is to build capacity on qualitative and quantitative climate risk assessment in order to identify business-specific climate physical and transition risks, estimate climate-related financial impacts and drive our energy, water and climate implementation/adaptation plans.
