Sustainability Performance

Good Corporate Governance

TVO addresses the importance and focuses on conducting business with honesty, transparency, and fairness. In 2018, the Company has determined policy on supervision and compliance with the regulations as a guide for compliance with the rules, regulations, law related to its business for directors, executives and employees. The policy is aimed to leverage policy of good corporate governance which will eventually create reliability of the company and trust among stakeholders and to create sustainable success for the entire organization.

In 2018, the Company reviewed the Business Code of Conduct to optimize the content to meet changes in situation and business environment. The Business Code of Conduct is a guideline for performing duties with integrity, honesty, transparency, morality and ethics.

Anti-Corruption

In 2018, TVO reviewed and amended Anti-Corruption policy and handbook to meet the current situation. The Company also emphasizes the importance of risk management on corruption, work procedures, internal control, monitoring and review of the anti-corruption measures. Additionally, the Company performs the followings.

• Communicate and educate directors, executives and employees through Anti-Corruption Training: The Practical Guide to enhance their understanding about corruption, policy and handbook for the Company’s anti-corruption strategy. TVO establishes the ‘No Gift Policy’ and publicizes on the corporate Intranet.

• Communication to suppliers: The Company sends mails or emails about the Anti-Corruption policy to its suppliers to ask for cooperation and support. Furthermore, TVO is willing to cooperate with its suppliers in complying with their anti-corruption policy to promote Thailand as a nation free of corruption.
• Receiving complaints: The Company determine rules, channels, and procedures for making complaints and reporting clues for the inappropriate behaviors or the acts which are in contrary to the morality, the violation or non-observance to the law, violation to the business code of conduct, articles of association, good corporate governance policy and the anticorruption policy.

Corporate Risk Management

Amid the rapid change of business environment and more intense competition nowadays, it is crucial that TVO adjusts itself after the situation. Risk management is an important management process and it is also a preparation for the Company to be able to cope with the changes efficiently, to add value to its business, to create confidence among stakeholders and to create value to the organization in the long term.

Management of Value Chain

TVO places importance on comprehensive management of the value chain to assure sustainability at work. The risk management is conducted with concern on the impacts that may occur to the business, environment, society and good corporate governance.

1. Procurement Since the procurement procedure, especially, the procurement of soybean in Thailand and abroad which is the primary cost of sale has impacts on the quality of our products. Hence, it is vital that the procurement procedures must be efficient in order to receive the raw materials with quality in line with TVO’s standard and from the source that is environmental-friendly. The Company has managed the risks on quality and fluctuation of raw material price, including other products and service. Additionally, TVO leads its partners taking into account the environment, society and corporate governance.
2. Production Our production process is equipped with prevention and responsibility to an impact that may occur to community, society and environment. TVO concentrates and pays attention to all production procedures by applying innovation and technology that is environmental-friendly, resulting products of good quality, nutrition for the well-being of health and life quality of the people.
3. Marketing and sale In response to the need of consumers, customers and stakeholders, TVO carries on the production of soybean meal and soybean oil that meet quality and nutrition standard. Besides, we emphasize the importance of research and development in order to meet demand and lifestyle of all consumer groups.
4. Product distribution TVO manages its product distribution with a commitment to deliver quality products to consumers and customers and reach the entire nation. Also, the Company maintains a good relationship with partners to continue impressive services.

Sustainable Procurement

Soybean is the primary raw material of the Company. Therefore, sustainable procurement of raw materials is vital to TVO's business operations. The Company has the policy to purchase soybean from local farmers as a part of creating a career and income for farmers and communities to have a better quality of life and well-being as well as creating economic sustainability.

the Company purchased 100% of soybean from local suppliers with the grade for the extraction plant

Apart from this, TVO has supported “Pracharath Large-Scale Farming Project: reduce cost and increase soybean productivity of Maetang colony cooperative, Chiang Mai province” for the two consecutive years to further develop and promote the cultivation of soybeans for Thai farmers. Organic fertilizers are used to increase productivity and reduce the cost of farmers participating in the project. The project also creates prototypes for safe soybean production as well as increasing the yield which farmers can manage themselves.

The soybean yield of the farmers who entered the project is 360 kilograms per rai. (Higher than the average output of Thailand.)

However, due to the insufficient amount of soybean productivity in Thailand, TVO has to import soybean from the country such as Brazil and the United States mainly. TVO works closely with suppliers to plan the procurement of raw materials so that the productivity is efficient and the operation is without interruption. The Company conducts surveys in the soybean planting area in the country of origin, in order to assess the balance between demand and supply of raw materials from each source and to anticipate environmental factors that may affect the procurement of raw materials, such as seasonal changes, harvest time, quality and price, including studying information from various analysis and research.

The cost of soybean cultivation of the farmers participating in the project is 1,614 baht per rai. (Lower than the average price of in the Thai market.)

Furthermore, TVO has a selection process for reliable partners, with the possibility to check the history of the source of raw materials to ensure that raw materials are not involved with deforestation or with the child labor, not violating human rights. The Company has joined Sedex as a member of the Ethical Trade Audit and RTRS (Round Table on Responsible Soy Association).

Human Rights Policy

TVO is committed to human rights which is a common practice in conducting business, covers all groups of stakeholders such as employees, communities, society, customers, and business partners in the supply chain, including rights in natural resources and the environment.

The company, thus, announces human rights policy for executives and employees to adhere to as a guideline to ensure that Company business operations proceed with prudence and do not take any action to cause abuse or affecting human rights both directly and indirectly, including not promoting or involving in human rights violations.

In addition, TVO has established a "child labor control policy and remedy for hiring child labor" by not employing child labor under 15 years, including controlling contractors and outsources, do not using child labor with strictly control and the company has suitable remedy measures for using child labor in supply chain. TVO has never violated labor laws and never had a labor dispute in anyway.

Safety and Occupational Health

Placing importance and concern on the health, safety and occupational health of its employees and stakeholders, TVO has in place the policy on quality, occupational health, safety and environment as a working guideline. The policy is set forth to prevent the accident that may cause lives and properties of the employees, communities and environment. The Company has prepared Management System for Occupational Health and Safety Assessment Series OHSAS 18001 and Thailand Industrial Standard specification for Occupational Health and Safety TIS 18001 to manage its occupational health and safety procedures.

According to the safety and occupational health management in the previous year, the total recordable injuries rate or TRIR of employees is 0.96, a reduction from the previous year. In 2017, TRIR was 1.36 and TVO’s TRIR was below the ranges in starch and vegetable fats and oil manufacturing (NAICS 311220) which was 1.7

The total recordable injuries rate or TRIR

Employee Stewardship and Development

Employee is deemed as the valuable asset of TVO. The sustainable growth of an organization is based on potential personnel which means being a good and smart person with knowledge and skills. In the previous year, TVO emphasizes the importance of personnel development, promotion of working with happiness and creation of coalition within the organization.

In 2018, TVO has 1,295 employees, dividing into 161 employees from the head office, 1,134 employees from the factory. The compensation of employees is provided in the form of salary, bonus and contribution to the provident fund including other benefits of employees, totaling 501 million baht. (For the details of employment please see Information on Employment)

Employee Development

In the past year, 73.89 percent of the employee attended the development course, total 15,552 hours or an average training of 12.01 hour/person/year. Details are as follows

Average Training hours

The Good Organization of Society

TVO thrives to become good corporate governance that taking care and sharing with the society. Hence, TVO has implemented a scheme, “Caring & Sharing: Sharing with the Heart for Sustainable Thai Society” to support education among deprived youth, to promote health of the community and society as a whole, to carry on the good culture and tradition and to place importance on taking part with the community in taking care of the environment.

• “Educational Development for Students in Nan project” The project is the collaboration between the School of Agricultural Resources, Nan Local Administrative Organization, Local Administrative Organization of Sanian Sub-district and the School of Agricultural Resources, Chulalongkorn University. The project connects between teaching-learning in active learning style for the community as a whole. The aim is to leverage the learning achievement among students and to develop mathematics and English teachers.

• Supporting the education for the youth the Company supports the scholarships to students who is an orphan in the 3 border provinces in the south, and scholarships to students from 9 schools in Nakhon Pathom province where the Company’s factory is located. The Company provides presents for arranging Children’s Day to total of 34 schools, as well as supports the Children’s Day in the community where the Company’s factory is located.

• “A-Ngoon, full of merit for being full of children Program” TVO launched a program “A-Ngoon, full of merit for being full of children” continuously to support the good nutrition and health to the youth and community. In the past year, the Company provides lunch scholarship for students from 4 schools in Nakhon Pathom area. The Company also supports the program the ‘Lunch - the meal for the brain and for life’ for deprived students from total of 6 schools in Nakhon Pathom. The Company sends monthly the A-Ngoon soybean oil and soybean oil to Border Patrol Police School, Suthasinee Temple.
• Medical supplies sponsorship To support the good health of the community, the Company provides sponsorship for medical equipment. In 2018, the Company provides medical equipment - one audiometer to Nakhon Chaisri Hospital, Nakhon Pathom which is a community hospital where the local and residents of Nakhon Chairsri District, including employees of the Company use. The purpose is to help the hospital to have ready equipment for timely and more efficient treatment. Furthermore, the Company sponsors the repair of air-conditioners within the hospital to facilitate patients or customers, enhancing a better atmosphere.

• Sorting 4 types of garbage with the 4 sub-district program To take care of the communities and environment of the four sub-district namely Nakhon Chairsri, Thaiyawas, Khunkeaw, Ngio Rai, Nakhon Prathom provicne, to become a clean community and a model for removing waste. TVO joins hand with Nakhon Chaisri District, the four model districts, and the Thailand Institute of Packaging and Recycling Management for Environment, the Industry Council launching the “Sorting 4 types of garbage with the 4 sub-district” program. The program consists of a workshop to pass on knowledge to the role model community about sorting waste which includes glass, plastic, metal and hazardous waste before disposal.

• Conservation of Culture, Tradition Each area and locality has a unique long history, cultivation of aesthetic, pride and the uniqueness of the local. Seeing the essence to conserve the fine custom, tradition and culture, TVO is willing to promote the uniqueness of locality and to further add value to the community.



• A working team for the community The Company sets up a working team to meet and visit the community, and to attend the meeting with community representatives and the local administrative organization to listen to suggestions, impacts that may occur from the operating result of the Company, and to seek for a solution to develop and rectify. Furthermore, the Company sets up the Emergency Response Team to monitor and resolve urgent issues within the community throughout 24 hours.

In 2018, TVO promotes technology development in the production process and introduced the innovative Nano Neutralization technology to improve the efficiency of the production process of soybean oil refinery. The outcome can reduce the amount of oil loss, with the yield of soybean oil by 0.3 percent. Moreover, the said technology is also environmentally-friendly since it can reduce the amount of wastewater by 40 percent. During the production process of A-Ngoon soybean oil, there is no hydrogenation process, hence, the product is free from trans fats.

In addition, the technology has been improved in the production process of full-fat soy. The machine is equipped with a squeezer, extruder, dryer and cooler to increase the productivity of the production process. Such a process helps to improve the quality of fullfat soy, one of the soybean meal product under the name 'TVO'. The soybean meal from the Company is better in quality, higher protein and full-fat soy up to 33.33 percent.