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Diversity


Females share of total workforce 40%


Females in management positions 39%
(as % of total management workforce)


Females in junior management positions, i.e. first level management 44%
(as % of total junior management positions)


Females in top management positions, i.e. maximum two levels away from the CEO (or comparable position)30%
(as % of total top management positions)


Females in management positions in revenue-generating functions (e.g. sales) 46.95% as a % of all such managers (i.e. excluding support functions such as HR, IT, Legal, etc.)


Freedom of Association

Breakdown of workforce based on nationality and gender
Nationality Female Male Grand Total
   British 2 2
   Chinese 2 2
   German 3 3
   Japan 1 1
   Cambodian 5 4 9
   Malaysian 1 1 2
   Myanmar 1 1
   Singapore 4 4
   Thai 16,540 24,803 41,343
16,546 24,821 41,367


Human Rights Due Diligence Process
ThaiBev’s Human Rights vulnerable groups
ThaiBev has identified the following vulnerable groups within our operations:
  • Own employees
  • Children
  • Indigenous
  • Migrant labor
  • Third-party contracted labor
  • Local communities



Human Rights Risk Assessment
ThaiBev conducts Human Rights Due Diligence process to identify, prevent, and mitigate any adverse human rights impacts incurred due to its activities throughout the value chain. As part of the process, ThaiBev carried out Human Rights Risk Assessment, encompassing all of its operations and relevant stakeholder groups: internal (e.g. employees), external (e.g. suppliers and community), with acknowledgement to vulnerable groups (i.e. children, migrant labor) that may be impacted by its activities. The assessment of human rights risk level used the matrix below to determine the significance of the human rights issues. There are two factors: likelihood (X-Axis) and severity (Y-Axis).




Remarks: Residual risks levels “High” and “Medium” are considered key risks that ThaiBev needs to understand the effectiveness of its existing controls.



Human Rights Risks Assessment Criteria: Severity
Severity Level  Scale
(The gravity of impact)
Scope
(Number of individuals that are/could be affected)
Remediability (The ease or otherwise those impacted could have their prior rights restored)
Critical (4) Significant impact to health and safety: physical disability or fatality Impact to all stakeholders in the group Impossible to restore or will take longer than 5 years (>5 years) to restore the impact
High (3) Moderate impact to health and safety: serious injury that needs rehabilitation (loss time injury) Impact to most stakeholders in particular stakeholder group Take 3 to 5 years (3 ≤ n < 5 ) to restore the impact
Medium (2) Slight impact to health and safety: minor injury or illness (no loss time) Impact to some stakeholders in particular stakeholder group Take 1 to 3 years (1 ≤ n < 3 ) to restore the impact
Low (1) Minor impact to health and safety: first aid case No negative impact to stakeholder Take less than a year (< 1 year) to restore the impact
Severity will be considered based on the scale, scope and irremediable of the risk or impact from the perspective of affected stakeholders. Severity is not an absolute value, but is relative to the other human rights risks and impacts that have been identified (UN Guiding Principle 14).

Human Rights Risks Assessment Criteria: Likelihood
 Likelihood level Likelihood
Very likely (4) Such human rights issues have occurred consistently from the past until present.
Likely (3) Such human rights issues have happened in the past, and may also occur very often at the present.
Unlikely (2) Such human rights issues have happened in the past, and may also occur sometimes at the present depending on operation of business units.
Very unlikely (1) Such human rights issues have never occurred in our business operation, but have occurred in the industry of the operation before.
Likelihood will be considered based on the local environment or context – the likelihood of a risk occurring is greater in a high risk operating environment (UN Guiding Principle 19).

Number of Sites with Mitigation Plans
Based on the human rights risk assessment, the results were summarized as follows: Human Rights Risks Issues Identified

Human Rights Risks Issues Identified
  • High Injury rate in plants
  • Limited car maintenance, which may lead to car accidents
  • Overtime for logistics workers (drivers) without proper rest
  • Leakage of employees’ personal data (i.e. salary, illness)
  • Unsafe working environments effecting suppliers’ workers’ health and well-being

Own operations
% of Sites with Human Rights Risks and Mitigation Plan
  • 100 % of own operation sites were assessed (83 operational sites in Thailand and overseas)
  • 40 % of activities in own operation with human rights risk, accounted to 2 out of 5 activities
  • 100% of high risk activities have mitigation plans implemented

Contractors and Tier 1 Suppliers
% of Sites with Human Rights Risks and Mitigation Plan
  • 100% of total critical Tier 1 supplier with were assessed.
  • 13% of the critical Tier 1 supplier was found to be at risk.
  • 100% of high risk activities have mitigation plans implemented

The Main Issues Identified
The human rights risk assessment illustrates 6 main issues – remaining at high risk level after existing mitigation efforts. This reflects the effectiveness of these mitigation measures, and guides prioritization of salient human rights issues. The salient human rights issues are as follows:
  • High Injury rate in plants
  • Limited car maintenance, which may lead to car accidents
  • Overtime for logistics workers (drivers) without proper rest
  • Leakage of employees’ personal data (i.e. salary, illness)
  • Unsafe working environments effecting suppliers’ workers’ health and well-being

The table below illustrates associated activities to each of the 6 salient human right risks.

The main issues identified Sourcing Production Distribution Marketing and Sales Post-Customer Packaging Management
High Injury rate in plants X
Limited car maintenance, which may lead to car accidents X
Overtime for logistics workers (drivers) without proper rest X
Leakage of employees’ personal data (i.e. salary, illness) X
Unsafe working environments effecting suppliers’ workers’ health and well-being X X
Detailed results of the human rights risk assessment, including all potential human rights issues are shown in ThaiBev Risk Register

High Injury Rate in Plants

Description:
Work accidents among employees are occurring frequently in plants, regardless of continuous mitigation efforts. Risks were identified as having insufficient safety equipment available, or being assigned to work in an insecure sites.

Activity at risk:
Production There are ThaiBev’s production plants operating over 30 sites across Thailand. Employees have been identified to be at risks

Mitigation action:
ThaiBev regularly conducts safety patrol inspections in all areas, substantiated with PM system, periodical machine assessment, and trainings for all relevant employees


Limited Car Maintenance Leading to Accidents

Description:
ThaiBev’s distribution involves a large number of logistic workers (i.e. drivers). It was reported that the vehicles available for product transportation are often old, and did not receive sufficient car maintenance. This leads to concerns on the drivers’ safety.

Activity at risk:
Distribution ThaiBev has many distribution centers across the country, which links our production to consumers around the world.

Mitigation action:
ThaiBev has proactively implement a mores stringent and more frequent maintenance schedule


Overtime For Drivers Without Proper Reset

Description:
Due to demanding schedule and employees’ personal time management, there is a risk that logistics workers (i.e. drivers) may work overtime without taking proper rest. This resulted in increased likelihood of extreme exhaustion and accidents.

Activity at risk:
Production and Distribution Due to the market scale, ThaiBev requires a large scale logistics arrangement to deliver products to our consumers.

Mitigation action:
ThaiBev consulted with relevant employees and have doubled the compensation for employees, as well as ensuring there is a systematic arrangement to provide resting hours for drivers.


Leakage of Employees’ Personal Data

Description:
In product sites, there appears to be a risk of data leakage. Some employee's personal data (i.e. salary, marital status, illness, age, education) may leaked. There remains a room for improvement in the current data security system.

Activity at risk:
Production Concerns were raised specifically for those working in production lines

Mitigation action:
ThaiBev has published an official corporate requirement and guidelines with regards to disclosure of private data, to ensure that all individual involved understand the importance of data privacy. The Company also arranges for regular Human Capital (HC) Committee meeting to review progress and make recommendations.


Unsafe Working Environment Among Suppliers

Description:
There are rooms for improvement in ThaiBev’s suppliers’ safety management system, particularly concerning occupational health and safety.

Activity at risk:
Production and Distribution ThaiBev works with a large number of suppliers. Our concern extends to their production plants and distribution arrangement.

Mitigation action:
To address this, ThaiBev ahs implemented pre-assessment AVL, as well as conducting routine audits for its suppliers. Having already achieved 100% coverage for Tier-1 suppliers, ThaiBev is now expanding its audit coverage to include non-Tier 1 suppliers. Audits are conducted via various measures (i.e. desktop, on-sites)


Remediation Action Taken
ThaiBev is committed to conducting human rights risk assessment within an appropriate timeframe in conjunction with preparation of risk preventive and mitigation measures. The Company is able to provide reasonable and prompt remedies in cases of violations. Performance are monitored and reported regularly. These human right risk management efforts are carried out in parallel with constant reviews of policy and commitment, ensuring maximum effectiveness in implementation.

In 2018, ThaiBev had no cases of human rights violation. Thus, no remediation actions were necessary or taken.

Human and Labor Rights
ThaiBev treats its employees with respect and in a non-discriminatory manner. The Company aims to follow its human rights policy adopted in 2016 and avoid all forms of human rights infringements. It also does not discriminate between employees of different gender, religion, or other differences. The policy encompasses all activities in the operation of the Company and all relevant stakeholders.

In 2017, human rights risk self-assessment including risk mapping and risk assessment was conducted to all operations in Thailand for 4 areas of the business value chain: procurement and supply chain, production, marketing and sales, and distribution covering all groups of stakeholders from children, indigenous people, migrant labor, third-party contracted labor, local communities and the disabled.

ThaiBev has designed a tool for evaluating risks relating to human rights for all its business groups at the practitioner level in order to monitor risks involved in each process of the business, such as the production process, and the sales and procurement process.

The result shows that the risks relating to human rights which may occur in the 4 aspects of the business value chain include:
  • Production: such as the risks in terms of employee’s occupational health from injuries during work or the community’s health from the smell from alcohol distillation process

  • Procurement and supply chain: such as the risk in terms of contractors’ occupational health

  • Distribution: such as the risks of child labor use by ThaiBev’s partners, or the road safety in the Company’s transportation.

  • Marketing and sales: such as the risk of shops in the community selling alcoholic beverages to the underage, which the Company has constantly come up with preventative plans to address.

Moreover, the Company also creates a good work environment and equal opportunities for all, as well as allowing capable employees to grow in the organization without discriminating against genders, religions, beliefs and other factors. ThaiBev promotes equalities among its staff. Female staff amounts are 32% of potential successors for key positions.

ThaiBev complies strictly with labor law. Welfare committees are established in all subsidiaries, consisting of representatives from the employee side and company executive. The committees discuss topics of welfare and labor rights regularly in order to promote relations and understanding between the Company and its employees, as well as to give encouragement to employees. The Company also trains those on the committees to help them understand the roles and process of communication through peaceful consultation and agreement.


ThaiBev
Sustainability



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