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Inspired by the Sufficiency Economy Philosophy (SEP), we strongly believe that effective sustainable development operations need to be founded upon a collaborative approach, sound governance structure, inclusive stakeholder engagement, and clear prioritization of material sustainability issues.
Our sustainability and ESG approach is inspired by the determination of His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua “to continue, sustain, and develop” the legacy of the Sufficiency Economy Philosophy (SEP) of His Late Majesty King Bhumibol Adulyadej the Great. SEP is a principles-based framework that promotes balanced development with respect to the environment, economy, community, and local culture. By applying the wisdom of SEP, ThaiBev believes we can attain a world-class standard of ESG and effectively engage local stakeholders, while also addressing global issues and contributing to international agendas such as the UN Sustainable Development Goals (SDGs). ThaiBev is also a staunch advocate of the Thai government’s Bio-Circular-Green (BCG) national development strategy, which seeks new ways to unlock growth, while protecting the environmental, economic, social, and cultural well-being of the country.

We create accountability and transparency through our participation and in the Task Force on Climate-Related Financial Disclosures (TCFD), Global Reporting Initiative (GRI) and Carbon Disclosure Project (CDP). We then set clear goals and action plans to improve our performance in all areas, especially in those that represent key materials issues related to our operations or impacting society at large. For example, in October 2022, ThaiBev announced new commitments focusing on a broad range of key material issues that involve the company and its stakeholders. These pledges include net-zero targets in Scope 1 and Scope 2 emissions by 2040, as well as, targets for water replenishment and biodiversity.

We are enacting policies and plans that focus on creating collaboration for actions on ESG across our existing ecosystems. These plans include public platforms, collaborations with partners, and continuous assessment and improvement of our own operations (see graphic). In this way, ThaiBev can grow new business opportunities, strengthen its competitive advantages, unlock the full value of potential opportunities, and continue to pursue meaningful sustainability initiatives under its mission of “Creating and Sharing the Value of Growth” with stakeholders, while also positively impacting the well-being of society, the environment, and the world.
Sustainable Development Approach
Sustainability Strategy
Governance Structure
Only through strong governance can our sustainability mission and goals be achieved. We recently revised our sustainability governance structure to ensure that our sustainability strategy will be fully integrated with our business transformation. This structure requires strong commitment and substantial engagement across our many business units in multiple countries and recognizes the interlinkage between sustainability, business strategy, and risk management.

Engagement and leadership begins with our Board of Directors, which is responsible for overseeing and determining the company’s overall ESG, business and risk strategies, and guiding the organization toward stable and sustainable growth for the benefit of all stakeholders. Under the 2022 ESG strategy “Enabling Sustainable Growth,” the Board believes we can grow our business and reduce risk, while creating numerous opportunities for our stakeholders and ultimately sharing these benefits with society as a whole.

The Board-appointed Sustainability and Risk Management Committee (SRMC) further helps formulate the company’s ESG strategy and risk management policies, and oversees ESG and risk management activities in accordance with the policies and strategies set by the Board.

For the first time, in 2022 the President and CEO appointed an Executive Vice President, to act as Chief of Sustainability and Strategy, to ensure the company’s group strategy and business transformation is integrated with its sustainability plans. Chief of Sustainability and Strategy also serves as secretary of the Sustainability and Risk Management Committee (SRMC), which is supported by the Sustainability Development Working Team (SDWT). SDWT, comprised of representatives from different business units, develops plans and ESG projects and participates in corporate sustainability assessments that verify the comprehensiveness of material sustainability topics. The SDWT also monitors and reports the progress of ESG programs to the SRMC.
ThaiBev Group’s Sustainability Development and Risk Management Structure
Sustainability Materiality Issues
To ensure sustainable and efficient development operations in line with the Global Reporting Initiative (GRI) standards, Thai Beverage Public Company Limited regularly conducts assessments/reviews of key sustainability issues every year. These assessments cover all three dimensions of sustainability: governance/economy, society, and environment, according to the organization’s context. They align with global trends and are relevant to the food and beverage industry.
The assessments follow the principle of double materiality, which evaluates and prioritizes issues that may impact stakeholders and affect Thai Beverage’s sustainability efforts. In this process, Thai Beverage begins with studying and understanding the sustainability context of the organization, identifying both actual and potential impacts, and assessing their significance. We engage with internal and external stakeholders and consult sustainability experts before ranking the most significant priorities. Enterprise Risk Management, including testing issues with experts, is employed to evaluate risks associated with these priorities. This evaluation is crucial before presenting the findings to the board of directors for approval. The process of assessing key sustainability issues follows these steps and includes the following details:
1. Understanding the organization’s context.
In accordance with the operational context and sustainability strategies of the Thai Beverage Group, ThaiBev has conducted a study to understand key sustainability issues. This is to ensure relevance and alignment with the current global trends, considering research from various sources such as the World Economic Forum (WEF), S&P Global’s indices and assessments, the Sustainability Accounting Standards Board (SASB), as well as international frameworks like the United Nations Sustainable Development Goals (UN SDGs). Particularly, issues related to the food and beverage industry are examined, along with reports and studies from companies in the same industry, and the concerns of internal and external stakeholders are taken into account. This comprehensive approach enables the collection of sustainability issues that are in line with the context of ThaiBev. These issues are expected to have an impact on the company’s sustainability and will be further assessed for their potential impacts and opportunities in the next phase.
2. Identifying actual and potential
impact and assessing the significance of the impact. To gather insights from stakeholders and sustainability consultants in identifying actual and potential impacts, ThaiBev has engaged in activities to involve key stakeholders both internally and externally. In the initial step, experts were requested to analyze and provide feedback on issues that have the potential to impact ThaiBev’s sustainability operations, including their effects on stakeholders (shortlisted issues) and the possible forms of impact.

Following that, the company followed the principle of double materiality by conducting a materiality assessment through an online platform (Google Forms). This allowed both internal and external key stakeholders to participate in evaluating the positive and negative impacts that have occurred or may occur as a result of ThaiBev activities related to each identified issue. The assessment also covered economic, social, and environmental aspects, designed in a survey format based on the organization’s enterprise risk management approach. It included an evaluation of the likelihood of both actual and potential opportunities and an assessment of the severity of impacts, both positive and negative. The likelihood and severity levels of impacts were categorized into four levels: (1) Low, (2) Medium low, (3) Medium high, and (4) High severity, as in the figure.

After conducting surveys with each group of key stakeholders, the results were gathered and analyzed together. These findings were then presented to the Sustainable Development Working Team (SDWT) and the management of Thai Beverage for the next steps.

3. Prioritizing the most significant issues for reporting.
In this stage, ThaiBev re-evaluated various important issues by following the principle of double materiality, considering the impacts of each issue on the company’s sustainability operations. The SDWT collectively determined the materiality threshold of the impacts of the identified issues in both financial and non-financial dimensions, referring to the criteria outlined in the organization’s enterprise risk management approach.

Subsequently, the results obtained from each key stakeholder group’s survey were reviewed before evaluating and prioritizing the issues with the highest impact (most significant) on ThaiBev. To validate the findings, ThaiBev conducted a materiality test with independent experts who have no affiliation with the company, both domestically and internationally. This was done to gather opinions on the assessment process and the identified issues. Following this, the two sets of results were presented to the Board of directors to seek feedback and obtain approval on the most significant sustainability issues for the company.

These priorities would serve as guidelines for managing sustainability and disclosing information in future reports.
  • Water Stewardship
  • Climate Change
  • Waste Management and Circular Economy
  • Sustainable Supply Chain
  • Corporate Governance and Business Ethics
  • Product Quality and Safety
  • Data Security and Privacy
  • Community Development and Partnerships
  • Talent Attraction and Retention
  • Human Capital Development