Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Human Resource Development
• Environmental Responsibility
• Stakeholder Engagement
• Corporate Social Responsibility
• Human Rights
• Quality and Safety

Environmental Achievements

• Reduced environmental impact through waste management hierarchy (source reduction, recycle, reuse, and disposal)
• Implemented biogas program using wastewater as co-fuel in boiler, reducing greenhouse gas emissions
• Used non-CFC refrigerants and Green Halon fire extinguishers
• Improved wastewater treatment exceeding government standards
• Monitored and reported water usage, waste reduction, and energy conservation

Social Achievements

• Organized Thailand Duck Cooking Challenge 2016 to develop chefs' careers
• Provided free training for chefs nationwide
• Implemented employee orientation program focusing on core values
• Emphasized diversity and inclusion, respecting human rights and treating employees fairly
• Spent 23,998 hours on human resource learning and development (average 13.1 hours per employee)
• Implemented various community engagement programs (Little Duck Por Pieng, Meal for Kid, Big Cleaning Day, etc.)
• Provided scholarships and educational support to remote schools

Governance Achievements

• Adhered to good corporate governance principles in accordance with Stock Exchange of Thailand guidelines
• Established corporate governance policy aligned with OECD criteria
• Implemented anti-corruption policy
• Established clear procedures for inter-transaction doing
• Appointed Audit Committee with independent directors
• Implemented internal control system based on COSO framework
• Disclosed information transparently in annual reports

Climate Goals & Targets

Environmental Challenges

• Reduced sales revenue due to domestic and global economic slowdown and price competition
• Appreciation of Thai baht compared to Euro impacting overseas subsidiary conversion
• Risk of dependence on contract farms for raising ducks
• Risk of labor shortages in processing plant
• Risk of raw material price fluctuations
• Risk of parent stock supply disruptions
• Risk of natural disasters and accidents
• Risk of communicable diseases (avian influenza)
• Risk of fluctuations in foreign currency exchange rates
• Risk of fluctuations in interest rates
• Risk of retroactive tax assessment
• Risk of impairment of intangible assets and goodwill

Mitigation Strategies

• Developed new value-added products and expanded distribution channels
• Implemented foreign currency exchange forward contracts
• Controlled interest rate risk through deposits and cap interest rate agreements
• Developed Business Continuity Plan (BCP) and risk insurance
• Implemented preventive measures to reduce risk of communicable diseases
• Implemented quality control systems and certifications (GMP, HACCP, BRC, ISO)
• Monitored and complied with changing policies and regulations
• Diversified export markets
• Developed employee training programs and invested in automation
• Implemented proactive cost management of raw materials
• Diversified parent stock suppliers
• Amortized intangible assets

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Clear procurement processes
• Long-term order commitments
• Flexibility to adjust prices

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (floods, droughts)

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)

Environmental Achievements

• Efficient wastewater management, recycled water used in the factory
• Installation of 7,500 solar panels on farm roofs (DTH, Netherlands), and another 5,000 planned for the slaughterhouse
• Aiming to become energy neutral in production facilities (DTH, Netherlands)

Social Achievements

• Duck for Everyone CSR Project: Providing food to Buddhist novices, orphans, and homeless shelters
• Hiring 22 disabled employees in 2018
• Emphasis on employee training and development programs (e.g., Innovation for BR Transformation, Strategic Leadership Development)

Governance Achievements

• Adherence to good corporate governance principles
• Establishment of Corporate Governance Policy in accordance with Stock Exchange of Thailand guidelines
• Establishment of anti-corruption policy

Climate Goals & Targets

Environmental Challenges

• Low selling prices of swine and chicken affecting duck meat prices
• Risk of US-China trade war, exchange rate fluctuations, rising interest rates
• Decreased export revenue due to plant improvements and one-off expenses (legal and professional fees)
• Price competition in the European duck market
• Dependence on contract farms for raising meat ducks
• Shortage of manpower in duck meat processing
• Fluctuations in foreign currency exchange rates and interest rates
• Risk of impairment of intangible assets and goodwill

Mitigation Strategies

• Modernizing BangPhli production facilities to recoup export revenue
• Developing production lines in Pathum Thani to produce innovative products
• Completing a new slaughterhouse in Sra-Kaew province to serve local and international markets
• Reorganizing corporate structure and improving operational systems
• Foreign currency exchange forward contracts to minimize exchange rate risk
• Policy to reduce interest rate fluctuations by offsetting interest rates from deposits and loans
• Amortization of intangible assets based on expected useful life
• Policy to encourage duck-raising farmers and improve their competency
• Investment in duck meat manufacturing technology and processing systems to reduce reliance on manpower
• Business Continuity Plan (BCP) and risk insurance

Supply Chain Management

Responsible Procurement

• Cost control awareness with suppliers
• Supplier Code of Conduct (managing environment and safety issues)

Climate-Related Risks & Opportunities

Physical Risks

• Floods, droughts, storms

Transition Risks

• Changes in government policies and regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Sustainability Development Report Guideline of the Stock Exchange of Thailand, Global Reporting Initiative (GRI) (being studied)

Certifications: ISO 9001, ISO 14001, ISO 22000, HACCP, GMP, BRC, IFS, Halal, ISO 45001:2018, ISO 14001:2015