Principles and Framework of Sustainability
The Company has a sustainability management policy obtained from the integration of practices and international standards for sustainability and social responsibility. This includes Sustainable Development Goals (SDGs) and International Organization for standardization (ISO) such as ISO 9001:2015 for quality management, ISO 14001 for environmental management systems, and ISO 45001 for occupational health and safety standards. Furthermore, the results of the assessment of stakeholder expectations, vision, business operations strategies, and sustainability strategies serve as a framework for corporate sustainability operations. The working group has adopted the guidelines for sustainability reporting of listed companies prepared by the Stock Exchange of Thailand as criteria for considering important issues that must be reported and disclosed for the benefit of raising awareness among all stakeholder groups.
UBE believes that giving importance to stakeholders in the form of sustainable value creation will encourage all parties to achieve good goals at the same time.
Managing economic values and complementary environments
Creating a good community and environment
Encouraging employees and farmers to move forward with UBE
In 2023, Ubon Bio Ethanol Public Company Limited and its subsidiaries (the “Company”) continued to adhere to the development and management of organizational sustainability under the concept of achieving a balance across three key factors: profitability (Profit), environmental stewardship (Planet), and support for the surrounding community, society, and employees (People). This commitment is upheld through principles of good corporate governance.
The Company has continued to give importance to stakeholders through Sustainable Value Creation and will support every part in achieving common goals together.
The company focuses on efficient business processes and generates the highest return by conducting its business in accordance with the principles of good corporate governance, transparency and consideration for all stakeholders, and by developing strategies and innovations that do not harm the environment and take into account the efficient use of natural resources for maximum benefit, as required by law and international standards.
The company has put into practice the concept of creating shared value between sectors and society, so that business, communities and society can grow together and aim to improve the quality of life of communities and society, including participating in and promoting the conservation of natural resources and the environment, the ecosystem.
The company attaches great importance to the responsibility of its employees, who are the main driving force behind the company's growth, both in terms of development potential and respect for human rights in accordance with international principles, compliance with labor protection laws, safety, occupational health and environmental protection in accordance with various standards, and focus on creating shared value through support and knowledge transfer to enable communities to access knowledge on organic farming and various innovations, to create knowledge and improve the quality of life in agriculture for sustainable growth.
The implementation of this Sustainable Development Policy has established metrics that can be used to monitor and evaluate the environmental, social and governance (ESG) performance of the Company's operations and all of its subsidiaries. This is important information that reflects the company's role and responsibility to its stakeholders and the continuous and sustainable development of the organization, in which the company is confident that these policies are fully considered and implemented by employees and managers at all levels of the company and its subsidiaries.
Sustainability Policy
the Company continued to advance its corporate vision, “Leading global organic and bio-based brand through technology and sustainable development,” to reflect its business goals. Alongside this, determination of corporate values for executives and employees was made to collaborate effectively under the term “UBEYOND.” This term is derived by combining 'UBE,' the Company's abbreviation, with 'Beyond,' which in the Thai context signifies 'More than what is intended.' It is utilized in communication to raise awareness among employees through the collaborative process of designing shared values among executives and employees. Meanwhile, the Company also promotes its ESG DNA to equip employees with comprehensive knowledge. This is an important reinforcement that will make sustainability management effective. Additionally, UBEYOND is utilized in external communications to make stakeholders aware of driving the business to grow further than before in every dimension. Activities are organized to promote corporate culture that focuses on sustainability management in the work process. There is also additional promotion of learning through the “ESG Knowledge Package” via online media for all executives and employees, ensuring they have the knowledge, understanding, and awareness of sustainability management to cover all dimensions. This ensures that the ESG dimension becomes the DNA that helps drive the business and increases the potential of employees to conduct business sustainably.
"UBEYOND" serves not only as a corporate culture for internal communication but also as a means to communicate the organization's intentions and determination to external target groups. This communication highlights the organization's commitment to fostering broader growth, transitioning from the energy and food (cassava starch) businesses, and evolving into a Food Tech Company driven by innovation. This transformation is guided by business principles that prioritize sustainability across all dimensions. The aim is to propel the business towards broader growth across three key areas, namely:
Sustainability Goals and Strategy
Building upon the establishment of the business concept “Beyond sustainability” our aim is to evolve into an organization that embodies sustainability across all dimensions. In 2023, in addition to the traditional 3P balance of PROFIT, PEOPLE, and PLANET, the sustainability management working group has introduced the term 'UBE CARE' to more clearly categorize project operations and budget planning for sustainability management. This initiative aligns with our commitment to achieving the Sustainable Development Goals (SDGs) and ensuring that sustainability is managed throughout our value chain, ultimately delivering products to all stakeholders. Consequently, the framework for developing sustainability goals has been revised as follows:
Addressing Impacts on Stakeholder in the Business Value Chain
In 2023, Ubon Bio Ethanol Public Company Limited and its subsidiaries made adjustments in response to situations affecting the cost and price of products, as well as the ability to deliver products under external pressure factors, especially in the cassava starch industry. These factors include high raw material costs and shortages in cassava supply due to the major flood crisis in Ubon Ratchathani Province and nearby areas. Consequently, the amount of produce decreased during the season and depleted faster than in previous years, compounded by a slowdown in demand from abroad.
To enable the Company and its suppliers to operate smoothly and receive quality products and services that are environmentally friendly and responsive to consumer needs under the principles of good corporate governance, conducting business with transparency, and participating in the community and society, the Company has established channels for listening to opinions, suggestions, and issues encountered by suppliers in order to develop collaborative processes. These channels also serve to explain the Company's operating guidelines. This year, the Company has adjusted the technology system, introduced new programs within the organization aimed at reducing the cost of working time and enhancing efficiency, accuracy, and speed. Additionally, knowledge and understanding are provided to suppliers to conduct business sustainably across environmental, social, and corporate governance dimensions, including human rights. The Code of Conduct for Suppliers is also reviewed to equip suppliers with the knowledge and understanding necessary for developing sustainability goals in collaboration with the Company.
Stakeholders
The Company gives importance to all groups of stakeholders, committed to operating in accordance with the concept of creating sustainable shared value, and taking into account sustainability management throughout the business value chain. This includes upstream activities, such as promoting planting and procurement of raw materials; midstream activities, such as production and product development, selling to food and food ingredient manufacturing companies; and downstream activities, such as bakery products and ready-to-eat food. The Company places importance on and considers the needs and expectations of all stakeholder groups to develop, plan, and effectively respond to those needs, thereby creating value and fostering sustainable growth.
Based on a business value chain analysis, important stakeholder groups serve as integral components in driving the Company's business operations towards sustainable growth. The Company has categorized stakeholders into 10 groups, encompassing customers/consumers, shareholders, employees, cassava yards, farmers, communities, government agencies, private sector, competitors, and the media. The Company has established guidelines for engaging with these stakeholder groups to address the issues in which they are interested and to meet their expectations, as follows:
Communication with Stakeholders over the Past 12 Months
| Stakeholders | Communication Channels / Communication Methods | Issues Interested/Expected by Stakeholders | Response to Issues of Stakeholders in 2023 |
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| 1. Customers / Consumers |
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| 2. Shareholders |
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| 3. Employees |
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| 4. Cassava Yards |
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| 5. Farmers |
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| 6. Contractors |
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| 7. Communities and public charity organizations |
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| 8. Government and private sector network agencies |
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| 9. Competitors |
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| 10. Mass Media |
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Management of Key Sustainability Issues
The Company conducts its business with a participatory and sustainable approach, aiming to meet the needs and expectations of its stakeholders. In addition to creating value for society and the environment, the Company also addresses and reviews key sustainability issues. This involves a process of selecting these issues based on the needs and expectations of various stakeholder groups and external sources, as well as considering key issues that affect the Company directly. Therefore, in 2023, the Company reprioritized the sustainability
issues crucial to its operations, considering the impact of fluctuating economic and climate conditions. This led to the reclassification of key issues into three issues as follows:
Area 1: Innovation Development and Research and Development
UBE has established its corporate value "UBEYOND," with the abbreviation "N" standing for INNOVATION, signifying an organization that builds its foundations upon innovation. In 2023, UBE and its affiliates underwent a review and improvement of the organizational structure and strategies of innovation initiatives, covering from upstream, midstream to downstream. This involved organizational restructuring to include more personnel under the Innovation, Research, and Development Department (the "Department") to focus on integrated work between the government sector and external private sector entities. The Company has established practical guidelines and strategies for innovation development and research and development through 3 Changes of Innovation, Research and Development strategies;
- C1 Challenge: Innovation Vision, Strategy
- C2 Change: Action and key Stakeholder
- C3 Champion: Innovation Product / Project
Area 2: Addressing Climate Change
Agro-industrial businesses require reliance on the use of agricultural raw materials. Planning for climate change is an urgent matter that must be closely monitored. Consequently, the produce may not achieve the target each year. Therefore, the Company plans to cope with climate change through raw material management and seeks new opportunities to upgrade high-value products.
Area 3: Supply Chain Management
Ubon Bio Ethanol Public Company Limited and its subsidiaries have become aware of the operations process for supply chain management, including trading partner selection, procurement of quality raw materials, and identification and assessment of risks related to suppliers and other stakeholders. The aim is to conduct business sustainably with suppliers, reducing risks in various business operations, and focusing on creating a balance during development, business growth, and value creation for all stakeholder groups, along with environmental, social, and corporate governance (ESG) considerations under the policy on the treatment of stakeholders. This aims to enable the business to coexist with the community and society in a sustainable manner.