Case study: How EGCO Group respects and promotes human rights
Electricity Generating Public Company Limited (EGCO) is the first independent power producer in Thailand, established in May 1992 by the Electricity Generation Authority of Thailand (EGAT) under the Thai government’s initiative to promote the privatisation of the power and utility sector. EGCO Group has continuously promoted both employees’ and suppliers’ understanding in human rights Tweet This! and the respective guiding principles, in accordance with the Universal Declaration of Human Rights.
This case study is based on the 2019 Sustainability Report by EGCO Group published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
EGCO Group recognises that human rights are one of the key principles within good corporate governance, and essential to business operations. In order to respect and promote human rights EGCO Group took action to:
- implement a Human Rights policy
- reinforce human rights into the corporate culture
- promote human rights among suppliers
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With this case study you will see:
- Which are the most important impacts (material issues) EGCO Group has identified;
- How EGCO Group proceeded with stakeholder engagement, and
- What actions were taken by EGCO Group to respect and promote human rights
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What are the material issues the company has identified?
In its 2019 Sustainability Report EGCO Group identified a range of material issues, such as market opportunities, human capital development, energy management, digitisation and innovation, talent attraction and retention. Among these, respecting and promoting human rights stands out as a key material issue for EGCO Group.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups EGCO Group engages with:
To identify and prioritise material topics EGCO Group engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers
| · Information and opinions exchanging meetings with the Transmission Control Unit from the Electricity Generating Authority of Thailand (EGAT) · Bonding activities with the EGAT Group · Meetings with the customers in the industrial estates for the production planning that will meet the customers’ demand. |
| Shareholders
| · Attend shareholder meetings · Informed through annual reports · Power plants visit · Private information session · Roadshows · LIFE quarterly magazine · Provide suggestions and complaints through designated communication channels · Inform through EGCO Group’s website |
| Government Agencies
| · Organise meetings · Company visits · Open channels for complaints, opinions, and suggestions |
| Employees
| · Field relevant business update meetings · Communication Day · Team building activities · Internal communication system |
| Community
| · Power Development Fund meetings · Power plant visits · Quality of life and community development project from a tri-party cooperation between power plants, government agencies, and local communities · SUKJAI quarterly magazine · Open channels for complaints |
| Creditors
| · Meetings · Power plant visits · Prior notice given in case EGCO Group is not able to fulfill the conditions of the loan agreement in order to find solutions to the problems together |
| Suppliers and Business Partners
| · Organise meetings · Company visits · Joint activities · Open channels for complaints, opinions, and suggestions |
| Investors
| · Quarterly analyst meetings · Annual Reports · EGCO Group’s website · Suggestions and complaints through designated communication channels |
| Society
| · Press conferences · Communication through EGCO Group’s website |
| Contractors and Subcontractors
| · Meetings · Company visits · Joint activities · Open channels for complaints, opinions, and suggestions |
| Media
| · Press conference · Exclusive interviews with executives · Company visits |
| Non-Revenue Organisations (NGOs)
| · Environmental conservation projects through the Thai Conservation of Forest Foundation · Company visits · Open channels for complaints, opinions, and suggestions |
What actions were taken by EGCO Group to respect and promote human rights?
In its 2019 Sustainability Report EGCO Group reports that it took the following actions for respecting and promoting human rights:
- Implementing a Human Rights policy
- The EGCO Human Rights policy was updated in 2019, ensuring coverage of material issues. The policy serves as a guiding principle for employees, business partners, and suppliers. It exhibits the Group’s commitment and determination to conduct business with respect for human rights. Additionally, EGCO Group has conducted human rights due diligence and risk assessment at every business operation level, inclusive to activities within the Group’s supply chain. The process is in accordance to the UN Guiding Principles on Business and Human Rights (UNGP). It ensures that there will be no human rights violations in the Group’s external and internal operations, as well as within all stakeholder groups throughout the supply chain. EGCO Group reviews and assesses potential human rights risks for business operations annually, in tandem with conducting human rights due diligence and risk assessment, according to the Human Rights Policy. Assessment results are assessed to improve relevant business operations, and develop appropriate mitigation measures against future risks and impacts.
- Reinforcing human rights into the corporate culture
- EGCO Group promotes a corporate culture on human rights via human rights trainings and risk assessment throughout its value chain. The aim is to increase understanding and awareness among employees. In 2019, 100% of EGCO Group’s employees received human rights training. Through human rights risk assessment workshops, with 100% coverage of business operations, EGCO identified 33.33% of business operations to be at risk (occupational health and safety in raw material work and services within the supply chain) and collaborated with relevant suppliers to identify measures to address or mitigate these risks. Within EGCO Group’s operations, measures and processes to evaluate and mitigate human rights risks were implemented in all levels of operations.
- Promoting human rights among suppliers
- EGCO Group has been communicating with suppliers regarding human rights, and has revised its procurement policy. EGCO’s supplier code of conduct, which addresses human rights policy, has also been developed. EGCO Group plans on conducting human rights due diligence every three years, reviewing human rights risks related to business activities throughout the supply chain on an annual basis. This effort ensures human rights work plans and human rights risk prevention measures are always up to date. As of 2019, EGCO Group received no complaints or reports concerning human rights issue, either from business activities, operations, or throughout the supply chain. Therefore, no remediation was required. However, EGCO Group is aware of the plausibility and risks that may occur and has prepared remediation measures for victims, to mitigate impacts from human rights violations.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 412-1 Operations that have been subject to human rights reviews or impact assessments
2) Disclosure 412-2 Employee training on human rights policies or procedures
Disclosure 412-1 Operations that have been subject to human rights reviews or impact assessments does not correspond to any SDG.
Disclosure 412-2 Employee training on human rights policies or procedures does not correspond to any SDG.
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References:
1) This case study is based on published information by EGCO Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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