SUSTAINABILITY VALUATION

Materiality assessment

This sustainability reporting of UBIS (Asia) Public Co., Ltd. for the year 2019 between 1 January 2019 – 31 December 2019 represents the Corporate Social Responsibility Report of UBIS, which consists of economic, social and environmental aspects. It shows business operations with social and environmental responsibility in an organized manner. Because UBIS (Asia) Public Co., Ltd. created the sustainability report for the first time, so the surveys on all stakeholders have not been completed yet. The procedure for materiality evaluation is as follows.

1. Identifying the topics

Collecting the topics that are important to UBIS’s business operations covering economic, social and environmental dimensions by the Sustainability Working Group

2. Prioritization

Prioritizing the topics by considering the trends and important impacts on the business and stakeholders by the Sustainability Working Group

3. Evaluation assurance

The results of materiality assessment were submitted to the Sustainable Development Committee for approval.

Results of materiality assessment 

No Material Topic Detail
1 Company performance Business strategic planning and risk management for quality and sustainable growth
2 Risk management The organization can identify, evaluate and manage the corporate risks for increased success according to the organization’s goals.
3 INNOVATION research and development Research and development of products and services by taking into account the needs of customers and the impacts on health, society and the environment
4 Good corporate governance 1. Thai Private Sector Collective Action Against Corruption (CAC)
2. Supplier code of conduct for sustainable development
5 Compliance with laws and regulations The organization’s business operations are based on the relevant laws, rules and regulations.
6 Logistics management The organization can respond to customer needs quickly and accurately.
7 Environmental management Organization’s established environmental policy ISO14001, ISO45001
8 Personnel development and reward Enhancing the development of individual employees and increasing work competencies for personnel such as training, knowledge management
9 Working environment as well as occupational health and safety Environmental management to be suitable for working safely
10 Staff competency development Developing individual employees and increasing work competencies for personnel
11 Product quality and product standard development Product quality and product standard development
12 Socially responsible business operations Doing business by taking into account social and environmental responsibility
13 Customer relationship management Involvement in product research and development with customers as well as long-term business partnership
14 Supplier management Transparency in doing business with suppliers

Materiality management

Performance

 Goal

Building strong operating performance and maintaining profit margins continuously

Goals, Strategies and Operations

Strategy

Management

Operating Result Year 2019

• Focus on developing innovations with customers (Market driven) and introducing new products

• Building brand Loyalty and maintaining the existing customer base as well as creating new customers

• Controlling the cost and expenses to be effective

• Establishment of UBIS Innovation Committee with a role in determining the organization’s direction of innovation

• Developing the process of building customer satisfaction

• Developing the conceptualization process of Cost effectiveness Management system

Customer satisfaction increased by 4%. Fixed gross profit margin at 35% Fixed profit margin at 13% (excluding loss from the exchange rate)

Operation

Strategy Activity
• Focus on developing innovations with customers (Market driven) and introducing new products Customer Innovation Visit (CIV): Collecting data and studying feasibility with customers and jointly undertaking the projects Innovation Trend Survey (ITS): Collecting data and studying new innovations as well as proposing the projects
• Building brand Loyalty and maintaining the existing customers as well as creating new customers Quality + Trust + Service = Loyalty
• Controlling the cost and expenses to be effective Operational Excellence

Risk management

Performance

Goal

Reducing the impact of uncertainties for increased success according to the organization’s goals

Goals, Strategies and Operations

Strategy

Management

Operating Result Year 2019

• Identifying the risk topics

• Establishing guidelines and framework for risk management in all dimensions

• Seeking new business opportunities

• Setting up the Risk Management Committee and Working Group

• Availability of risk management approach in the organization that covers strategic, business, operating and financial aspects

• Enhancing knowledge on risk management for personnel in the organization

Intermediate risks from 10 to 8 remaining topics

Operation

Strategy Activity
• Identifying the risk topics • Conduct of training on risk management
• Meeting to identify the circumstances that are risk factors
• Setting guidelines and framework for risk management in all dimensions  Assessing the significant risk topics. Establishing risk management measures and communicating them to the relevant parties
• Extending the results and monitoring the operation of the control system specified on a regular basis
• Seeking new business opportunities • Putting the results of risk analysis management into practice

Innovation research and development

Performance

Goal

Innovation development to create a sustainable organization

Goals, Strategies and Operations

Strategy

 Management

Operating Result Year 2019

Emphasis on innovation development with customers (Market driven), product development to reduce usage restrictions (pain point), developing value-creating products

• Establishing the UBIS Innovation Committee with a role in determining the organization’s direction of innovation

• Developing the innovation process with customer focus concept

Investment in research and development equaled 0.25% of sales income. 10% quantity of lacquer products tried by customers and extending to actual use and 18% for compound products

Operation

Strategy Activity
Emphasis on innovation development with customers (Market driven) Customer Innovation Visit (CIV): Collecting data and studying feasibility with customers as well as collaborating on the projects Innovation Trend Survey (ITS): Collecting data and studying new innovations as well as proposing the projects
Development of products to reduce usage restrictions (pain point) Think-Act: Cultivating the idea of overcoming limitations
Development of value-creating products Innovation Trend Survey (ITS): Collecting data and studying new innovations as well as proposing the projects

Good corporate governance

Performance

 Goal

Organizational Culture of Good Corporate Governance

Goals, Strategies and Operations

Strategy

Management

Operating Result Year 2019

• Promoting knowledge of good corporate governance

• Raising awareness about the importance of good corporate governance within the organization

• Establishing the Good Corporate Governance Committee and Sustainable Development Committee

• Preparing the business code of conduct manual and corporate governance manual

CG Score 4

Operation

Strategy Activity
• Promoting knowledge of good corporate governance Training courses for directors and executives. Assessing knowledge and understanding of ethics as well as code of conduct
 Raising awareness about the importance of good corporate governance within the organization Process for receiving the employees’ complaints, feedback. Employee satisfaction survey. Compliance with laws and regulations

Environmental management

Performance

 Goal

Preventing and reducing the environmental impact of corporate activities

Goals, Strategies and Operations

Strategy

Management

Operating Result Year 2019

• Use of ISO14001 system for environmental management

• Efficient use of resources and energy

• Campaigning for employees to realize the importance of energy saving

• Establishing the working group to be responsible for environmental management

• Creation of energy conservation project

Increased green space of the factories by 5%
Reduced use of plastic water bottles by 100% in company activities
Improved warehouses to reduce fuel oil consumption
Installed LED bulbs to reduce electricity consumption by 2.5 times

Operation

 Strategy Activity
• Use of ISO14001 system for environmental management 1. Reducing the use of plastic bottled water in the company’s activities
2. Increasing green space in the factories with homegrown vegetables
3. Installation of Slit Saver to reuse water for watering plants
4. Installation of insulated stainless-steel tanks to reduce electricity consumption in the water cooling system
5. Waste sorting in the factories and head office
6. Use of air treatment machines in the production processes
7. Installation of LED bulbs to reduce electricity consumption in the factories

WORLD CLASS PARTNERSHIP
WITH EXCELLENT EXPERTISE
AND INNOVATION