Thai Beverage

Sustainable development strategy
ThaiBev has conducted a materiality assessment, through which it identified and prioritised its most relevant topics. The company has disclosed details of this process, which includes risk assessments, while also identifying the value created though its activities. Based on this, the company has devised a list of 17 topics that align with global trends and stakeholder requests, and it has set time-bound targets that cover its identified topics as well as the three benchmark dimensions of environment, nutrition and social inclusion. ThaiBev is encouraged to continue updating its identification process as well as disclosing progress against its time-bound targets

Plastic use and packaging waste
The company has various targets regarding packaging waste and plastic use for all its food-related activities, focusing mainly on primary used materials such as glass, paper, aluminium and PET. The company also has a subsidiary that is responsible for the collection of post-consumption packaging for reuse or recycling. ThaiBev works with various stakeholders throughout its value chain on these issues. It discloses qualitative and quantitative information on its packaging reduction initiatives as well as various targets for 2020 and 2025. The company is encouraged to keep strengthening its commitment by achieving 100% sustainable packaging across its operations and continuing to engage with stakeholders.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Governance and accountability for sustainable development
ThaiBev’s board of directors oversees the development of its business, with a ‘sustainable growth for all’ perspective. The board has also appointed a Sustainability and Risk Management Committee that supports the board in the development and deployment of its sustainable development strategy. The company also discloses having a Corporate Sustainable Development Committee as well as other more operational working groups. However, the company could strengthen its governance by linking its performance appraisals and remuneration to non-financial metrics and disclosing information on this.

Stakeholder engagement
ThaiBev discloses its stakeholder engagement activities and has established engagement guidelines, which state that outcomes of these activities are to be used to determine the company’s strategy and planning. ThaiBev’s stakeholders cover its full value chain and topics across the environment, nutrition and social inclusion dimensions. The company could further improve its disclosure by sharing its stakeholder identification process.

Scope 1 and 2 greenhouse gas emissions
The company discloses having a science-based greenhouse gas (GHG) emissions reduction target equivalent to a minimum of 2.5% absolute reduction per year, which could be consistent with a 1.5-degree trajectory. The company also discloses working towards contributing to Thailand’s nationally determined contributions. ThaiBev states that it achieved a 4.6% decrease in absolute scope 1 and 2 emissions, exceeding the company’s science-based target. The company is encouraged to have its science-based target approved as well as continuing to disclose its progress.

Scope 3 greenhouse gas emissions
The company discloses qualitative evidence of activities to reduce scope 3 GHG emissions such as supplier collaboration, packaging repurchases and recycling. While the company states it already has a time-bound target, it is not yet in place. Furthermore, the company discloses its ambition to have a science-based target for scope 3 emissions. The company can continue reducing this type of emissions by setting a science-based target and disclosing progress against it.

Water use
The company discloses its activities around water use. These include having a Corporate Water Management Policy, water management plans for each location and a water product life assessment to optimise water usage. The company has also mapped its water risk areas and has engaged with some of its stakeholders. Moreover, a target has been set, aiming at a 5% reduction in water intensity, and the company reports on progress. It could strengthen its commitments by also engaging with all its suppliers on this topic.

Availability of healthy foods
While the company discloses that it introduces reformulated products such as low-sugar items and uses a healthier options system, it has an opportunity to disclose quantitative evidence of its reformulation activities to reduce the level of salt, sugar and fat in its products.

Accessibility and affordability of healthy foods
The company does not disclose a commitment to address food insecurity by improving the accessibility and affordability of healthy and nutritious foods.

Clear and transparent labelling
The company does not disclose that it provides nutritional information through clear, transparent and accurate labelling.

Food safety
ThaiBev discloses that 100% of its own operations are certified to the ISO 22000 food safety standard by the International Organization for Standardization. The company also has other industry-related certifications such as the National Sanitation Foundation for bottled water and uses the hazard analysis and critical control points (HACCP) system. The company could continue strengthening its responsibility towards food safety by engaging with its suppliers on the topic.

Child labour
The company does not disclose a commitment to prohibit child labour in its operations and supply chain.

Forced labour
The company does not disclose a commitment to prohibit forced labour in its operations and supply chain.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Health and safety of vulnerable groups
ThaiBev discloses that it has identified two particularly vulnerable groups: disabled and elderly workers. The company has a policy of hiring disabled workers and provides flexible and suitable working hours. For instance, disabled workers can choose their working days according to a schedule specified each week as needed. However, the company does not disclose that it also engages with its suppliers on this matter and could improve by requiring suppliers to address vulnerable groups’ health and safety.

Land rights
The company prohibits its suppliers from violating communities’ right to access land and natural resources and requires them to respect the established rights of indigenous and tribal people to their land as well as their free, prior and informed consent. Nonetheless, the company could also require its suppliers to set up a grievance mechanism accessible to external communities and disclose its remediation mechanisms.

ThaiBev commits to respecting human rights and the ILO core labour rights. The company has also set up a grievance mechanism for workers. ThaiBev discloses that it has a due diligence process in place. However, no information regarding its process for identifying and assessing human rights risks were found. No evidence was found of an engagement process for stakeholders who are or might be affected by the company.

While ThaiBev commits to promoting the health and safety of its own workers and those in its supply chain, no further disclosure regarding decent work was found. As such, it is not possible to assess whether ThaiBev is committed to providing living wages, guaranteeing decent working hours, assuring collective bargaining, or improving workforce diversity and gender equality.

ThaiBev has a publicly available policy and commitment on data protection, along with commitments regarding responsible tax practices and anti-corruption and anti-bribery measures. The company can improve its score by increasing its disclosure on taxes paid. No publicly available lobbying and political engagement commitment was found.