SeaChange and Materiality Linkage - 2019 update - Thai Union

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SeaChange and Materiality Linkage - 2019 update - Thai Union
SeaChange® and
 Materiality Linkage
    2019 update

Page 1            Thai Union Confidential
SeaChange and Materiality Linkage - 2019 update - Thai Union
SeaChange® and Materiality Alignment
Sustainability      Material        Driver            Material                2020 Goals           2018 Progress                 Examples of
  Strategy          Aspect                             Issue                                                                      Initiatives

                  o Human      o Provision of safe   o Human           o We will treat all         o Safe and Legal          o Granular country-
                    Rights       and legal labor       Rights            workers, whether            Labor Update (you         based and sector-
                                 for our own                             migrant or local            can read more             based human rights
                                 employees and                           employees, fairly and       here). Launched           risk assessment
                                 those in our                            with dignity. They will     digital mapping         o Implementation of
                                 supply chains.                          have safe and freely        system to Thailand,       the VCoC and Vessel
                               o Risk                                    chosen employment.          focusing on               Improvement
                                 management                            o Our supply chains,          mapping our               Program (VIP).
                                 and mitigation                          from vessel to              shrimp and general      o Ongoing
                                 with respect to                         factory, will comply        procurement               implementation of
                                 human rights.                           with labor                  processes.                the Business Ethics
                               o Compliance with                         regulations and our       o Published updated         and Labor Code of
                                 human rights                            Business Ethics and         UK Modern Slavery         Conduct (CoC) and
                                 related laws and                        Labor Code of               Act Statement.            the Ethical Migrant
                                 international                           Conduct.                  o Issued Vessel Code        Recruitment Policy.
                                 standards on                          o With full traceability      of Conduct (VCoC).      o Ongoing partnership
                                 forced labor,                           of all the seafood we     o Mainstreaming of          with Issara Institute,
                                 human                                   purchase, we will           zero fees                 LPN, and MWRN on
                                 trafficking and                         have information            recruitment               labor rights training
                                 modern slavery.                         about the labor             process within all of     and grievance
                               o Management of                           practices on board          our operations            mechanism.
                                 reputation with                         vessels.                    globally.
                                 respect to the                        o Through education
                                 Thai fishing                            and open dialogue,
                                 industry.                               we will empower our
                               o Engagement for                          workers, giving them
                                 constant                                a voice today and
                                 improvement                             into the future.
                                 with active
                                 NGOs and civil                      2
                                 society.
         Page 2                                             Thai Union Confidential
SeaChange and Materiality Linkage - 2019 update - Thai Union
SeaChange® and Materiality Alignment
Sustainability    Material        Driver        Material               2020 Goals        2018 Progress                Examples of
  Strategy        Aspect                         Issue                                                                 Initiatives

                             o Meeting                          o We are committed to    o Participation in the   o Recruitment
                               customer and                       leading an ongoing       Bali Process              evaluation project.
                               consumer                           and active dialogue      Business and           Ref: SR2018 p23-24
                               demands.                           with industry,           Government
                             o Building trust                     government and civil     Forum, plus
                               with our                           society to ensure        numerous other
                               stakeholders.                      lasting improvements     public events to
                                                                  in labor practices       share experiences
                                                                  across the entire        and promote
                                                                  industry.                change.
                                                                                         o Payment of all of
                                                                                           our workers
                                                                                           globally via
                                                                                           electronic
                                                                                           payments.
                                                                                         o Set new standard of
                                                                                           migrant worker
                                                                                           recruitment with
                                                                                           transparency.
                                                                                         o Zero fee
                                                                                           recruitment policy
                                                                                           helps solve
                                                                                           worker’s debt
                                                                                           bondage problem.

         Page 3                                      Thai Union Confidential
SeaChange® and Materiality Alignment
Sustainability        Material        Driver            Material                 2020 Goals          2018 Progress               Examples of
  strategy            Aspect                             Issue                                                                    Initiatives

                   o Safety      o Ensure the         o Human Rights       o “0” fatality cases of   o There were no         o Conducted “Ammonia
                                   safety of            and Ethical          our employee and          fatalities for both      Consequence Model
                                   everyone at our      Labor                contractors (Yearly       employees and            Program” at Thai
                                   sites, including     Practices            goal)                     contractors in           Union Group factory in
                                   contractors.                            o LTIFR: 0.5 cases per      2018                     Samut Sakhon,
                                 o To overcome                               200,000 hours           o Employee LTIFR           simulating an
                                   any challenges                            worked for                was 0.59 per             ammonia
                                   of building a                             employees                 200,000 hours            management model to
                                   safe workplace,                                                     worked, which            proactively prevent
                                   and mitigate                                                        shows a steady           the impacts of
                                   the risk of                                                         decline since            ammonia hazards and
                                   injuries and                                                        base year 2016           risks.
                                   fatalities                                                                                o Sharing of lessons
                                 o To make                                                                                      learned from past
                                   advances in our                                                                              incidents to avoid
                                   occupational                                                                                 similar incidents
                                   health and                                                                                o Provision of safety
                                   safety policies;                                                                             design for new high-
                                   continually                                                                                  voltage equipment,
                                   strengthen our                                                                               and a forklift safety
                                   safety                                                                                       guideline
                                   standards,                                                                                o Implementation of
                                   procedures and                                                                               Safety Line Model to
                                   processes                                                                                    enhance operational
                                                                                                                                efficiency and safety
                                                                                                                             o Conducted health and
                                                                                                                                safety training
                                                                                                                                workshop for
                                                                                                                                hundreds of vessel
                                                                                                                                owners, captains, and
                                                                     4                                                          crew in Thailand
          Page 4                                            Thai Union Confidential                                          Ref: SR2018 p30-31, 35
SeaChange® and Materiality Alignment
Sustainability      Material           Driver            Material                2020 Goals        2018 Progress              Examples of
  Strategy          Aspect                                Issue                                                                Initiatives

                  o Responsible   o Working            o Sustainable      o 100% of our branded    o Complete our four-   o Announced the
                    Sourcing        towards full         Sourcing           tuna will be             year partnership       launch of
                                    traceability of                         sustainably sourced      with WWF focused       SeaChange® IGNITE,
                                    procured raw                            from either FIPS or      on improving the       a collaboration to
                                    material back to                        MSC certified            sustainability of      advance new
                                    fishing ground                          fisheries, with a        seafood supply         sustainability
                                    and boat is                             target of 75% of our     chains and             initiatives and
                                    fundamental for                         global branded tuna      advocating for         improvements
                                    our business.                           being sourced from a     better fisheries       throughout the
                                  o Ensuring our                            FIP or MSC by 2020.      management.            supply chain.
                                    oceans are                                                     o 90% of tuna          o Chicken of the Sea®
                                    sustainable, now                                                 sourced from MSC       announced the
                                    and for future                                                   fishery or FIP for     formation of a
                                    generations.                                                     Thai Union markets     Responsible
                                  o Ensuring the                                                     in Europe.             Aquaculture
                                    vessels we buy                                                 o 19% of tuna            Commitment to bring
                                    from are legal                                                   sourced from MSC       full traceability and
                                    and operate                                                      fishery or FIP.        sustainability to its
                                    responsibly.                                                                            aquaculture supply
                                                                                                                            chains.
                                                                                                                          o Continued support
                                                                                                                            for the Global
                                                                                                                            Dialogue on Seafood
                                                                                                                            Traceability (GDST)
                                                                                                                            to develop key data
                                                                                                                            elements and
                                                                                                                            interoperability for
                                                                                                                            the seafood industry.

         Page 5                                                Thai Union Confidential
SeaChange® and Materiality Alignment
Sustainability    Material   Driver   Material               2020 Goals   2018 Progress                Examples of
  Strategy        Aspect               Issue                                                            Initiatives

                                                                          o 100% of tuna           o Release our first
                                                                            purchased from            Tuna Commitment
                                                                            PVR listed large          Progress Report (you
                                                                            scale purse seine         can read more here).
                                                                            vessels.               o Conducted training
                                                                          o 79% of tuna               for 204 individuals
                                                                            purchased from            from 125 suppliers of
                                                                            PVR listed vessels        food ingredients,
                                                                            for all fishing gear      packaging and
                                                                            types.                    logistics on our
                                                                                                      Business Ethics and
                                                                                                      Labor Code of
                                                                                                      Conduct, as well as
                                                                                                      training for 300
                                                                                                      captains.
                                                                                                   Ref: SR2018 p25-27

         Page 6                            Thai Union Confidential
SeaChange® and Materiality Alignment
Sustainability        Material            Driver             Material                 2020 Goals        2018 Progress               Examples of
  Strategy            Aspect                                  Issue                                                                  Initiatives
                   o Climate         o Climate change      o Climate            o Reduce GHG            o GHG (Scope 1 & 2)     o GHG reporting
                     Change and        has a direct          Change               emissions (Scope 1      emissions intensity      program has been
                     Environmental     impact on Thai      o Water                & 2) by 30% per         is 0.78 ton              changed from excel
                     Protection        Union's key raw       Consumption          ton of production       CO2eq/tonFG, or a        format to online
                                       material            o Waste to             [base year 2016].       10.34% reduction         platform (Enablon).
                                       sources and can       Landfill           o Reduce water            against the base         Enablon training
                                       cause                                      consumption by          line of 2016             programs for all
                                       disruption at                              20% per ton of        o Total water              sites have been
                                       our processing                             production [base        consumption              conducted. Monthly
                                       facilities due to                          year 2016].             intensity is 13.65       reporting and
                                       extreme                                  o Reduce waste to         m3/tonFG, or a           tracking programs
                                       weather events.                            landfill by 20% per     9.66% reduction          are established.
                                                                                  ton of production       against the 2016      o EHS 2018 data
                                                                                  [base year 2016].       base line                verification for our
                                                                                                        o Waste to Landfill        Sustainability Report
                                                                                                          intensity is 31.34       began in November
                                                                                                          kg/tonFG, or a           2018 and was
                                                                                                          46.97% reduction         completed in
                                                                                                          against the 2016         February 2019.
                                                                                                          base line             Ref: SR2018 p52-53

                                                                                                                                o Promoting factories
                                                                                                                                  in Thailand to attend
                                                                                                                                  the LESS (Low
                                                                                                                                  Emission Supporting
                                                                                                                                  Scheme) program
                                                                                                                                  with the Thailand
                                                                                                                                  Greenhouse Gas
                                                                                                                                  Management
                                                                                                                                  Organization (TGO).
                                                                                                                                  In 2018, five
                                                                          7                                                       factories received a
                                                                                                                                  LESS certificate from
          Page 7                                                 Thai Union Confidential
                                                                                                                                  TGO.
SeaChange® and Materiality Alignment
Sustainability     Material   Driver   Material                2020 Goals   2018 Progress       Examples of
  Strategy         Aspect               Issue                                                    Initiatives
                                                                                            o We continued
                                                                                              installing the solar
                                                                                              rooftop at Thai
                                                                                              Union
                                                                                              Manufacturing
                                                                                              (TUM) and Songkhla
                                                                                              Canning (SCC) with
                                                                                              power capacity of
                                                                                              0.6 and 1 MW
                                                                                              respectively. For
                                                                                              these two projects,
                                                                                              Thai Union will
                                                                                              reduce greenhouse
                                                                                              gas emissions by
                                                                                              approximately 1,100
                                                                                              tons CO2/y.
                                                                                            o Promoting WWTP
                                                                                              reuse/recycle and
                                                                                              rain water collection
                                                                                              at our sites. The
                                                                                              results of these
                                                                                              programs were
                                                                                              significant, with a
                                                                                              reduction in water
                                                                                              consumption of
                                                                                              more than 160,000
                                                                                              m3 in Europe and
                                                                                              the U.S., and
                                                                                              700,000 m3 in Asia.

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          Page 8                          Thai Union Confidential
SeaChange® and Materiality Alignment
Sustainability     Material   Driver   Material                2020 Goals   2018 Progress       Examples of
  Strategy         Aspect               Issue                                                    Initiatives
                                                                                            o Waste to landfill
                                                                                               reduction programs
                                                                                               have been rolled out
                                                                                               at many plants such
                                                                                               as Pak Food Asia and
                                                                                               Thai Union Seafood,
                                                                                               where they use
                                                                                               wastewater sludge
                                                                                               for fertilizer and
                                                                                               have planted trees.
                                                                                               At Songkla Canning,
                                                                                               they introduced a
                                                                                               recycling process for
                                                                                               contaminated plastic
                                                                                               that previously went
                                                                                               to landfill. Other
                                                                                               programs were also
                                                                                               introduced in Poland
                                                                                               and Ghana. As a
                                                                                               result, Thai Union
                                                                                               has reduced its
                                                                                               waste to landfill by
                                                                                               more than 17,000
                                                                                               tons since 2016.
                                                                                            o Ongoing
                                                                                               implementation of
                                                                                               GHG & Energy
                                                                                               Manual.
                                                                                            Ref: SR2018 p30-31

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          Page 9                          Thai Union Confidential
SeaChange® and Materiality Alignment
Sustainability         Material            Driver             Material                  2020 Goals       2018 Progress              Examples of
  Strategy             Aspect                                  Issue                                                                 Initiatives
                    o Ocean Plastic   o Ocean plastic       o Ocean Plastic       o Ensure 100% of our   o Issued Five-Year     o Conducted plastic
                                        and marine                                  branded packaging       Packaging              type packaging
                                        debris is a                                 is reusable,            Innovation             assessment (SR2018
                                        material issue                              recyclable or           Roadmap to reduce      p32-33) to
                                        for Thai Union's                            compostable by          our environmental      categorize packaging
                                        revenue due to                              2025                    footprint              functions.
                                        growing                                                          Ref: SR2018 p34        o Launch of 2 new
                                        stakeholder                                                      o Published GGGI          packaging (AR2018
                                        concerns about                                                      action plan (you       p91)
                                        the health and                                                      can read more       o Joined forces with
                                        resilience of the                                                   here).                 the Global Ghost
                                        oceans. In                                                                                 Gear Initiative
                                        particular, our                                                                            (GGGI) to promote
                                        concerns are                                                                               reduction of plastic
                                        the impact on                                                                              waste and the
                                        global fish stock                                                                          growing problem of
                                        levels and the                                                                             abandoned, lost and
                                        impact on                                                                                  discarded fishing
                                        seafood supply                                                                             gear (ALDFG).
                                        chains from                                                                             o Engagement with
                                        plastic waste                                                                              businesses, NGOs
                                        and abandoned                                                                              and general public
                                        fishing gear.                                                                              to raise awareness
                                                                                                                                   of issues of ALDFG
                                                                                                                                o Improved
                                                                                                                                   management
                                                                                                                                   practices for ALDFG
                                                                                                                                   in Thailand.
                                                                                                                                Ref: SR2018 p32-34

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          Page 10                                                  Thai Union Confidential
SeaChange® and Materiality Alignment
Sustainability         Material            Driver            Material                 2020 Goals         2018 Progress                Examples of
  strategy             Aspect                                 Issue                                                                    Initiatives

                    o Human Capital o To become an         o Human              o 85% Employee           o 82% Employee            o Thai Union’s
                      Development     industry leader        Capital              Engagement by            Engagement score           Capability
                                        that creates         Development          2020.                                               Framework.
                                        change and                              o Key factors to                                   o Employer Value
                                        makes a                                   retain employees                                    Proposition
                                        positive                                  obtained.                                        o Establish TU
                                        difference.                                                                                   academy (Sales
                                                                                                                                      and Marketing)
                                                                                                                                   o Establish COE
                                                                                                                                      Engineering
                                                                                                                                   Ref: SR2018 p36-37

                    o Communities     o Ocean plastic                           o We support UN                                    o Beach Clean up
                                                           o Communities                                 o In September 2018,
                                        and marine                                SDG 14 - Life Below                                 Day with
                                                                                                           Thai Union supported
                                        litter is a                               Water. We work                                      community at Koh
                                                                                                           the local community
                                        material issue                            with communities                                    Yao Yai.
                                                                                                           in Koh Yao Yai to
                                        for Thai Union.                           to protect marine                                o Pre-school
                                                                                                           collect trash and
                                        Although Thai                             and coastal                                         program for
                                                                                                           debris from the
                                        Union has been                            ecosystems to                                       children of migrant
                                                                                                           beach. Thai Union
                                        committed to                              avoid significant                                   and local workers
                                                                                                           employees were
                                        working with                              adverse impacts by                                  in Samut Sakorn
                                                                                                           among about 200
                                        our                                       strengthening their                              o CONNEXT ED
                                                                                                           volunteers collecting
                                        communities to                            resilience and                                   o Nutritional
                                                                                                           waste along the
                                        reduce waste                              taking action for                                   workshops
                                                                                                           beach in Laem Hat on
                                        for a number of                           their restoration in                             o Support for Un
                                                                                                           15 September. A
                                        years, in 2017                            order to achieve                                    WFP
                                                                                                           total of 308
                                        we elevated                               healthy and                                      Ref: SR2018 p37-39
                                                                                                           kilograms of rubbish
                                        ocean plastic                             productive oceans.
                                                                                                           was collected on the
                                        and marine
                                                                                                           day.
                                        litter to become
                                        a significant                     11
          Page 11                       material issue           Thai Union Confidential
SeaChange® and Materiality Alignment
Sustainability      Material        Driver          Material                2020 Goals   2018 Progress                 Examples of
  strategy          Aspect                           Issue                                                              Initiatives
                               due to stakeholder                                        o Thai Union Group         o Thailand’s growing
                               concern and                                                 PCL. launched a            problem of ocean
                               developing                                                  video highlighting the     plastics and
                               research. In                                                growing problem of         marine debris
                               particular, our                                             ocean plastic and          became the focus
                               concerns are for                                            marine debris, with a      of a new Thai
                               the health and                                              focus on Thailand, in      Union Educational
                               resilience of the                                           an effort to raise         Video.
                               oceans and the                                              awareness and
                               health of people                                            trigger action to
                               who rely on oceans                                          ensure the seas are
                               for food and                                                sustainable for future
                               livelihoods.                                                generations. The
                               We also engage                                              video identifies how
                               our staff and                                               small, everyday
                               communities on                                              actions can make a
                               waste                                                       significant difference
                               minimization and                                            in helping protect the
                               appropriate                                                 world’s precious
                               disposal of waste.                                          marine life. An
                                                                                           estimated 100,000
                                                                                           marine mammals are
                                                                                           killed every year by
                                                                                           plastic litter. The
                                                                                           VDO was distributed
                                                                                           to schools and
                                                                                           communities in Koh
                                                                                           Yao Yai.

          Page 12                                      Thai Union Confidential
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