Sustainability Performance

Corporate Governance

TVO attaches importance and adheres to the transparent, fair and accountable business operations. In 2019, TVO has announced the “Compliance Policy” as a guideline of the good operation inconsistent with the laws and regulations related to business conduct for its directors, executives and employees. This is leverage the Company’s policy of good corporate governance, resulting in earning trust and confidence from stakeholders and sustainable success.

In 2019, TVO also reviewed the “Code of Conduct” to suit the ever-changing situations and market environment as a guideline for honest, transparent, moral and ethical practices.

Moreover, TVO has appointed the Compliance Working Group for effectiveness of the compliance governance, in line with the Compliance Policy and the Good Corporate Governance to enhance the corporate image as a well-conducted organization corresponding to laws and regulations, resulting in TVO to success as planned and earn trust and confidence from shareholders and all groups of stakeholders

Anti-Corruption

TVO was certified as a membership of the Thailand’s Private Sector Collective Action Coalition against Corruption (CAC). In Year 2019, TVO has reviewed our policy and improved the Anti-Corruptions Manual to better suit the current situations and placed importance to the organization’s corruption risks, operational procedure and internal control; plus followed up and reviewed the Anti-Corruptions Manual. In addition, TVO has also carried out as follows:

• Communication and educating employees: TVO has arranged the Update!! The Code of Conduct and Anti-Corruption course in order to encourage the understanding of the Anti-Corruptions manual, as well as no gift policy to put into practice. The content of the course is published on the internal electronic communication system (intranet and e-mail).
• Communication with suppliers: Via postal letters or email to inform them of the Company’s policy and the Anti-Corruptions Manual, requesting cooperation from suppliers to support the anti-corruption practices. TVO is glad and willing to cooperate with suppliers to comply with their own anti-corruption policies to be a part to drive the corruption-free society in Thailand.
• Complaint handling: In 2019, the Company has improved our “Whistleblowing Procedure” as an official channel and process of reporting and whistleblowing when improper, immoral or illegal behaviors or actions are found. These also include the actions that are against the Code of Conduct, the Company regulations, the Good Corporate Governance policy and the Anti-Corruptions Manual.

TVO was certified as a membership of the Thailand's Private Sector Collective Action Coalition against Corruption (CAC)

Corporate Risk Management

In 2019, TVO changed our risk management structure: the Board of Directors has appointed the Environmental, Social, Risk Management and Compliance Committee (ESRC) to determine the policy, govern the environment-related work, social responsibility, law compliance, risk assessment, risk management guideline and measure, and action plan for the Company’s existing risks, together with following up the operation, assessing, reviewing and improving the work systems to be in line with the policy, business plan and good corporate governance, which are the basis of sustainable development.

To realize effective and agile operation, the ESRC Committee has established the Environmental, Social, Risk Management and Compliance Committee - Enterprise (ESRC-E) to operate the policies set by the ESRC Committee, leading to management-level operation. The ESRC Committee has an important role in supporting the ESRC-E and top executives regarding to environment, social responsibility, organizational risk management, compliance governance; as well as supporting and encouraging the continuous and regular improvement of the related operation and reporting to the Board of Directors and the related parties.

Moreover, the ERSC-E has established the Risk Management Working Group for the effective risk management operation, in keeping with the policy, business plan and good corporate governance.

Management of Value Chain

Procurement

Production

Marketing and Sales

Distribution

Customers and Consumers

TVO pays attention to the management throughout the value chain for the sustainable operation, by managing risks in consideration of possible impacts towards business, environment and society and good corporate governance.

1. Procurement
   In year 2019, TVO has established the supplier code of conduct, as it considers our suppliers as one of the important stakeholders who take part in creating values and growths. The Company has the intention to support suppliers in sustainable business operations, in line with its business practice and also expects the cooperation from suppliers in applying our supplier code of conduct appropriately as a basis of mutual sustainable growth.
2. Production
   In the production process, TVO focuses on and pays attention to every step of production, applying innovations and technologies in the environmentally-friendly production procedure to achieve the quality, nutritional products for well-being and life quality of the public. Additionally, TVO has the highest safety guarantee measure for the production process which is the Biosecurity System, to prevent risks all-round. Furthermore, it considers the possible influences of the production process towards the communities, societies and environments by setting the community relations team to monitor the impacts, provide remedies, seek prevention or improvement solutions and foster the relationship with communities neighboring the plants.
3. Marketing and Sales
   The marketing and sales plans for the customers of soybean meal groups and vegetable oil groups focus on mainly responding to the domestic product demand. At the same time, TVO expands the business into new markets in neighboring countries in the same region, adhering to quality, nutrition and standards, under the fair and proper price competition.
4. Distribution
   TVO has our distribution management system for fast, on-time and nationwide products delivery to customers and consumers.
5. Customers and Consumers
   TVO attaches importance to research and development of new products to meet the numerous requirements and lifestyles of all groups of consumers. As well, TVO has arranged activities to build up relationship with consumers, creating understanding of good nutrition through our products and making TVO logo well-recognized by customers and consumers.

Sustainable Procurement

In 2019, TVO has prepared the Supplier Code of Conduct, covering the issues of human rights, labor, environment and anti-corruption, together with obedience and compliance of the applicable laws and regulations; as a mutual business guideline to ensure that the Company’s and suppliers’ business procedures are conforming in sustainable development. The Company has published the policy via our website for all groups of stakeholders. TVO expects and is ready to support our suppliers in adopting or applying guidelines in the supplier code of conduct in the business operation for long-term mutual sustainable growth.

More than 50% of major suppliers acknowledge and accept our Supplier Code of Conduct and Anti-Corruption policy

1) Supplier categorization make the suppliers realize and place importance to the sustainable development together. TVO considers the suppliers with high values or significance to the Company’s operation as our main supplier group, categorized into domestic and international ones, in order to communicate for supplier’s acknowledgement and understanding of the supplier code of conduct.

2) Supplier’s economic, social and environmental risk assessment create participation with the suppliers to communicate TVO’s expectation and intention to manage the sustainability and look for the methods to enhance the potential and competitiveness and encourage the cooperation throughout the supply chain.

3) Monitoring and assessment TVO will monitor the compliance of the supplier code of conduct through the supplier’s self-assessment, third party audit or site visit; and prepare the action plan to help developing the sustainable business operation in line with TVO.

4) Disclosure The information regarding operation for sustainable procurement and supply chain management will be disclosed to all groups of stakeholders on the Company’s website: www.tvothai.com

Environmental Policy

TVO realizes the importance of environmental conservation. In order to prevent and be responsible for potential effects which may occur in the operations of the Company, TVO has established the “Environmental policy” which was announced on the Intranet and the Company’s website in order to encourage continuous improvement, support the invention of new innovation that reduces the impact of the production process along with preparing various measures for the most efficient usage of resources. In addition, it also helps to solve climate change problems, organizes campaigns to reduce deforestation, promotes efficient water management, and protects the ecosystem and biodiversity.

Environmental operations are under supervision of the Environmental and Social Working Group which consists of representatives from the relevant departments in order to achieve efficient coordination, reduce negative effects from production processes, promptly tackle problems and complaints from the effects, and realize the sustainable development model, accomplishing both goals and policies as planned.

Resource Utilization and Energy Conservation

TVO has established the Energy Policy to serve as an energy conservation guideline for efficient and best benefits of business. This is done by implementing the energy conservation aspect into the operations of the Company as well as improving efficiency of resource utilization constantly and in line with the business. This effort is a responsibility of executives and employees in every level.

In terms of energy efficiency management, TVO has established the Energy Management Team to make energy conservation activities become successful as per the policy. The committee plays an important role to coordinate all units in the organization, ask for cooperation and raise awareness of employees for compliance of the energy conservation policy and energy management practices, hold proper energy conservation trainings or activities, as well as supervising energy conservation efforts to ensure efficiency, reviewing an energy conservation policy and approach regularly, and gathering suggestions on the policy and approach in order to propose them to executives.

TVO has the energy management system with the ISO 50001 standard, the environmental management with the ISO 14001 standard (Factory 1) as well as has been certified Green Industry level 3.

Water Management

TVO aims to decrease water usage by controlling blowndown flow of boilers in order to decrease boiler refill water through the TDS control. In 2019, the drained water was at 4.26%. After the implementation, the blowndown flow is expected to decrease to 2.88% from 2020 onwards

In addition, TVO has also managed the waste water process in order to be reused in production processes through degumming, as well as repurposing into steam in roasters for the soybean meal production process and spray in boilers for the wet scrubber system which proves to be effective in dust controlling. This means all waste water from production processes will be reused for maximum benefits and minimizes volume of waste water for the water treatment process.

In 2019, production processes consumed water about 893,979 cubic meters per year or 0.75 cubic meter per ton of beans, which was 5% lower than 2018.

Reducing Waste from Production Processes

TVO puts an emphasis on management of waste from production processes, packaging, and general support while focusing on proper management in order to utilize resources for maximum benefits and cause minimum environmental impact through the 3Rs principle, consisting of Reduce, Reuse, and Recycle. Waste can be classified into 2 groups: Non-Recyclable Waste, which needs to be disposed as per regulations, procedures, and principles of Department of Industrial Works. Another one is Recyclable Waste, TVO has devised a variety of management plans for each type of waste; nevertheless, TVO has implemented the new plastic bottle transportation and packing bottle model. In the past, bottles were purchased in order to be used for packing directly, which produced a large volume of plastic bags used for packaging bottles. Currently, the oil packing department has shifted to use preform bottles instead to decrease plastic bags.

Waste from Recyclable Production Process – Decrease waste by 8% in 2024

Reduction of Greenhouse Gas Emission

TVO has preceded various operations in order to engage in reduction of greenhouse emission from business activities. In 2019, the Company has established energy management plan. Steam consumption in boilers has decreased for 3,397 tons resulting in decrease of greenhouse emission by the corporate for 75 tons of CO2e. At the same time, there has also been an establishment of the plan for reduction of electrical energy usage in production process. If this plan is completely implemented, electrical energy usage would be decreased for 1,000,000 kwh. This is resulted from the installation of the solar panels on the roof and at the empty space of the factory which can reduce the greenhouse gas emitting from electricity usage for 500 tons of CO2e.

Carbon Footprint

TVO has given precedence to energy management, encouragement on energy conservation and maximum benefit derivation, and selection of quality ingredients in order to promote sustainable management of greenhouse gas. The Company has also joined the Carbon Footprint Promotion Program with Thailand Greenhouse Gas Management Organization (Public Organization) or TGO. In 2019, TVO was certified for Carbon Footprint or the amount of greenhouse gases emitted from each unit of products, totally 46 products, throughout its lifetime.

In 2019, Steam consumption in boilers has decreased for 3,397 tons resulting in decrease of greenhouse emission by 75 tons of CO2e

Goal to reduce greenhouse gas emissions in 2024 from 1 liter PET bottle oil product by 2% of the product's carbon footprint, comparing from the base year 2019

Packaging inprovement plan will reduce the weight of paper cartons and plastic bottles by 10% and reduce the overall greenhouse gas by 1,086 tons of CO2e.

The installation of the solar panels on the roof and at the empty space of the factory can reduce the greenhouse gas emitting from electricity usage for 500 tons of CO2e.

Corporate Innovation Enhancement

In 2019, the Company has used the new innovation called Ice Condensing which is the high efficiency vacuum system used for deodorization with the minimum operating temperature of - 26°C. This system can help decreasing deodorization temperature and time resulting in high quality vegetable oil which is healthy for the consumer.

Ice Condensing Innovation

• Decrease 40% of Steam Energy Usage
• Decrease 30% of Electricity Usage
• Decrease 20% of Wastewater from Condensing System

Complaint Management

TVO has given precedence to the management of production process impacts and complaints which reported to the Company. The community relations team is responsible for close cooperating with surrounding communities and visits each family in the community in order to receive complaints and perform initial ameliorative actions before reporting the issues to the environment and society working group which leads to performance of corrective action on each aspect to minimize the production impacts. The community relations team is also responsible for responding to the communities with results of corrective action done by TVO.

The operation can be divided into 2 parts as follows: