Table of Contents 4 Message from the President and CEO Our Inspiration: The ThaiBev Sustainability Approach 6 Board Statement 10 About This Report 12 About ThaiBev 20 Sustainability Approach Our Mission: Creating and Sharing the Value of Growth for a Sustainable Future 32 Governance, Risk and Compliance 42 Innovation 46 Consumer Health, Safety and Wellbeing 50 Customer Relationship Management 58 Sustainable Sourcing 64 Limitless Opportunities 84 Safety, Occupational Health and Work Environment Our Journey: Caring for the Environment and the Entire Value Chain 88 Managing Environmental Impacts 90 Water Stewardship 96 Waste Management 102 Eco-friendly Packaging 108 Energy and Climate Change Our Destination: Sharing the Value with the World 114 Social Sustainability 118 Developing Communities and Society 128 Pracharath Rak Samakkee Project 134 Education Development 146 Public Health Development 150 Athletic Development 156 Preserving and Promoting Art and Culture Appendix 168 Performance Summary 176 Independent Assurance Statement 178 Glossary 180 GRI Standards Content Index 4 Sustainability Report 2018 MESSAGE FROM THE PRESIDENT AND CEO 5 Thai Beverage Public Company Limited 2018 was a significant year for Thai Beverage Public Company In Thailand, our commitment to sustainability has been Limited (“ThaiBev”). As we marked our 15th anniversary, highlighted not only by our internal dedication to reduce our ThaiBev was recognized as a member of Dow Jones Sustainability footprint and protect the health of our workers and consumers, Indices (DJSI) for the World Index family and Emerging Markets but also by our extensive outreach to communities through the Index family. We achieved the highest sustainability scores on Pracharath Rak Samakkee social enterprises initiative. This social a global scale and were recognized as an industry leader, reflecting enterprise network focuses on income-generating in the areas our progress towards fulfilling our goal of becoming a stable of agriculture, value-added products and community-based and sustainable leader in ASEAN and the world’s leading tourism. ThaiBev facilitates improvements in five areas – access beverage company. to factors of production, innovations, marketing, communication and creating awareness of sustainability and management. Led by our “Vision 2020”, which emphasizes the five pillars All of our activities continue to be guided by the principles of Growth, Diversity, Brands, Reach and Professionalism, in 2018 of the late King Bhumibol Adulyadej Borommanathbobitra’s ThaiBev also pushed ahead with its expansion in ASEAN. Sufficiency Economy Philosophy and the United Nations’ Two landmark moments – our acquisition of Saigon Beer - Alcohol 17 Sustainable Development Goals. - Beverage Corporation (Sabeco) in Vietnam and Grand Royal Group in Myanmar – will help us achieve our Vision 2020 Also relevant to our commitment to a prosperous ASEAN is our objectives. Over the last 15 years, ThaiBev has grown to become work together with C asean, an institution which is focused on a true ASEAN company with a wide range of products in our supporting start-ups, fostering connectivity, and strengthening portfolio, diverse and professional working teams, and extensive competitiveness among all ASEAN countries. ThaiBev is inspired reach throughout the ASEAN region. to preserve and showcase the unique cultural attributes of Thailand and ASEAN. This progress comes with significant and growing responsibilities. As ThaiBev moves forward, we must constantly monitor and As we completed 15 years of successful operations, it is clear assess our risks and impacts in order to create truly sustainable that great opportunities lie ahead. ThaiBev’s determination growth for the region. We must stay abreast of social and to be an ASEAN business leader remains as strong as ever. technological changes, and consider the environmental footprint Our goal is to not only maintain strong growth but to benefit of our supply chain. As our workforce grows, and our operations all of our stakeholders and contribute to the overall social and cross new borders, we must meet the new challenges by environmental progress of the region. maintaining our values and respecting the rights of all. At the heart of our commitment to all the communities in which we operate is our ongoing dedication to “Creating and Sharing the Value of Growth.” This means ThaiBev will not only pursue growth in the name of financial bottom line, but also to promote quality of life in community, the health of the environment and the happiness of the people. For the past several years, since we established our Corporate Sustainability Development Committee, we have further instilled the sustainability ethos Thapana Sirivadhanabhakdi in the management and among the workforce, and each year, President and CEO as evidenced by our improving DJSI scores, we are achieving a deeper understanding and more effective implementation by embedding sustainability practices throughout our human capital, value chain and business practices. 6 Sustainability Report 2018 Board Statement 7 Thai Beverage Public Company Limited The ThaiBev Board (the “Board”) is committed to improving the sustainability of the ThaiBev Group (the “Group”). Sustainability considerations, including environmental, social, and governance (“ESG”) issues, the natural resources management, the development of human capital, organization, and corporate culture, are integral and essential matters which we take into account in our formulation of the overall strategy for the Group. We fully support all efforts by ThaiBev’s management team in this area. Furthermore, as the Group’s long-term sustainability is a key priority for the Board and as efforts in this respect depend on the management team’s implementation and operational abilities, the Board has made it clear that our evaluation of their performance takes into account their effectiveness in delivering on the commitments made to sustainability initiatives and targets in this report. The Board is committed to being transparent, clear and open about ThaiBev’s businesses to its shareholders and other stakeholders. The disclosures made in this report and in the Group’s annual report are in line with this commitment. In this report, we have discussed ThaiBev’s efforts to continue building on and strengthening the Group’s collaboration with business partners to drive positive economic, environmental, and social impact throughout its value chain with good governance. The Board has assigned responsibility for overseeing ThaiBev’s sustainability initiatives and the preparation of this sustainability report to the Group’s Corporate Sustainability Development Committee (“Committee”) and working team. The Board receives regular reports and presentations from the Committee and the ThaiBev management team on their sustainability objectives, targets, initiatives, challenges, progress and achievements, as well as the management and emphasizing of the material factors relating to ESG, natural resources management (e.g. water resources), human capital and corporate culture development of relevance to the Group. In 2017, the Board extended the scope of the Risk Management Committee to govern the Group’s sustainable development strategies and renamed the committee as the Sustainability and Risk Management Committee. This change allowed the Group to effectively integrate its risk assessment and management with the Group’s sustainable development strategies and initiatives. The committee addressed key materiality topics from climate change to water stewardship to consumer health and safety, marking ThaiBev as an early mover in combining these processes. The Group has also planned to expand its sustainable development goals to cover overseas operations, allowing us to become a truly sustainable and stable total beverage leader in ASEAN. 8 Sustainability Report 2018 “ ThaiBev… Always with You” 9 Thai Beverage Public Company Limited For 15 years, ThaiBev has aimed to create and share the value from its continuous growth. ThaiBev is committed to meeting consumer needs, which have been changing with every generation and period, and for different gender and age groups, and is dedicated to bring happiness to every moment of your life through quality beverages. ThaiBev also conducts its business in accordance with a sustainability approach by taking society and the environment into consideration, as well as good business performance. This enables ThaiBev and all of its stakeholders to grow sustainably in all aspects and prepares ThaiBev to become a stable and sustainable total beverage leader in the ASEAN market. “ThaiBev… Always with You” 10 Sustainability Report 2018 ABOUT THIS REPORT GRI 102-1, GRI 102-10, Thai Beverage Public Company Limited, hereby ThaiBev, GRI 102-45, GRI 102-48, GRI 102-49, has published an annual sustainability report since 2011. GRI 102-50, GRI 102-52, This is the fifth report, for 2018, which has been prepared GRI 102-53, GRI 102-54, GRI 102-56 in accordance with the core criteria of the international GRI Standards framework of the Global Reporting Initiative (GRI). Its objective is to communicate important subjects related to the company’s business and sustainability practices to stakeholders. The headings and content of the report cover four core topics: economy, society, environment, and art and culture. The intention of this report is to present the strategies and methods of business operations that adhere to the principles of sustainable development