Banpu Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Mon, 06 Mar 2023 13:52:13 +0000 en-US hourly 1 https://wordpress.org/?v=7.1 Case study: How Banpu creates economic value for its stakeholders https://sustaincase.com/case-study-how-banpu-creates-economic-value-for-its-stakeholders/ Fri, 21 Oct 2022 06:08:07 +0000 https://ccprowebs.com/new-sustaincase.com/?p=14249 Established on 16 May 1983 as “Ban Pu Coal Company Limited”, Banpu is currently an international versatile energy provider operating in 10 countries worldwide. This case study is based on the 2020 Sustainability Report by Banpu, prepared in accordance with the GRI Standards, 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 In 2020, although Banpu recorded a net loss, dividends were paid to […]

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]]> Established on 16 May 1983 as “Ban Pu Coal Company Limited”, Banpu is currently an international versatile energy provider operating in 10 countries worldwide. Banpu believes that business should not only focus on profitability, but also consider how to distribute economic value among related stakeholders.  Tweet This!

This case study is based on the 2020 Sustainability Report by Banpu, prepared in accordance with the GRI Standards, 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

In 2020, although Banpu recorded a net loss, dividends were paid to shareholders and Banpu maintained the economic value distributed among all its key stakeholders. In order to create economic value for its stakeholders Banpu took action to:

  • create economic value for employees, suppliers and contractors
  • create economic value for shareholders and financial institutions
  • create economic value for the government and communities

What are the material issues the company has identified? 

In its 2020 Sustainability Report Banpu identified a range of material issues, such as community engagement, occupational health and safety, human capital development, business continuity management. Among these, creating economic value for its stakeholders stands out as a key material issue for Banpu.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Banpu engages with:

To identify and prioritise material topics Banpu engaged with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Government ·      Occasional visit

·      Support to governmental initiatives and activities

·      Response to requests for data disclosure

·      Publication of annual report and sustainability report

·      Public information on Banpu’s website
Employee

 

 

 ·      Communication between human resources department and employee

·      Employee involvement in committees

·      Compliant channel

·      “Banpu Heart” behavioural survey

·      Employee engagement survey

·      Town Hall Meeting
Customer ·      Customer satisfaction survey

·      Compliant channel

·      Customer visit

·      Response to requests for data disclosure

·      Report on annual maintenance plan and emergency drill

·      Inform consent for customer data use

·      Data security mechanism
Supplier ·      Regular meeting with supplier

·      Data security mechanism
Contractor

 

 ·      Regular meeting with contractor

·      Annual mining contractor meeting
Financial Institution ·      Analyst meeting

·      Publication of annual report and sustainability report
Business Partner ·      Board meeting at subsidiaries and associated companies

·      Publication of annual report and sustainability report

·      Report on annual maintenance plan and emergency drill
Shareholder

 

 ·      Annual general meeting of shareholder

·      Publication of annual report and sustainability report

·      Compliant channel

·      Public information on Banpu’s website
Investor ·      Opportunity investment roadshow

·      Presentation on Opportunity Day organised by Stock Exchange of Thailand

·      Publication of annual report and sustainability report

·      Public information on Banpu’s website
Media and NGOs ·      Response to requests for data disclosure

·      Fact sheet summary

·      Public information on Banpu’s website
Community ·      Community Consultative Committee (CCC)

·      Community satisfaction survey

·      Compliant channel

·      Communication with community development officers

·      Public information on Banpu’s website

What actions were taken by Banpu to create economic value for its stakeholders?

In its 2020 Sustainability Report Banpu reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for employees, suppliers and contractors
  • In 2020, Banpu paid USD 308 million for employee remuneration and benefits, provident fund contributions and employee development expenses and USD 1,173 million to suppliers and contractors.
  • Creating economic value for shareholders and financial institutions
  • In 2020, Banpu paid USD 63 million for shareholder dividends and USD 166 million to financial institutions, including interest and financial expenses.
  • Creating economic value for the government and communities
  • In 2020, Banpu spent USD 246 million in royalty fee, corporate income tax, local maintenance tax, property tax, specific business tax, and other additional taxes and payments to the government and USD 3 million in community development expenses, corporate social responsibility activities and land compensation.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by Banpu, 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 following link:

https://www.banpu.com/investor-relations/publications/sustainability-report/

Note to Banpu: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Banpu creates economic value for its stakeholders appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How Banpu promotes sustainability among its suppliers https://sustaincase.com/case-study-how-banpu-promotes-sustainability-among-its-suppliers/ Fri, 11 Mar 2022 07:05:08 +0000 https://ccprowebs.com/new-sustaincase.com/?p=13359 Banpu is an “Integrated Energy Solutions Company” operating three core business groups across Asia Pacific under the “Greener & Smarter” strategy, with experience for almost 4 decades. Promoting ESG principles across its supply chain, making sure that all existing and potential suppliers operate their business in adherence to environmental, social and governance standards, is one of Banpu’s missions. This case study is based on the 2019 Sustainability Report by Banpu 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 […]

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]]> Banpu is an “Integrated Energy Solutions Company” operating three core business groups across Asia Pacific under the “Greener & Smarter” strategy, with experience for almost 4 decades. Promoting ESG principles across its supply chain, making sure that all existing and potential suppliers operate their business in adherence to environmental, social and governance standards, is one of Banpu’s missions.

This case study is based on the 2019 Sustainability Report by Banpu 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.

In 2019, Banpu announced its Supplier Code of Conduct, as a foundation for creating sustainable growth together with its suppliers.  Tweet This! In order to promote sustainability among its suppliers Banpu took action to:

  • assess suppliers
  • implement a Supplier Code of Conduct

What are the material issues the company has identified?  

In its 2019 Sustainability Report Banpu identified a range of material issues, such as community engagement, human capital development, occupational health and safety, socioeconomic compliance. Among these, promoting sustainability among its suppliers stands out as a key material issue for Banpu.

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:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s 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 Banpu engages with:

To identify and prioritise material topics Banpu engages with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Government ·      Occasional visit

·      Support to governmental initiatives and activities

·      Response to requests for data disclosure

·      Publication of Annual Report and Sustainability Report

·      Public information on Banpu’s website
Employee

 

 

 ·      Communication between human resources department and employee

·      Employee involvement in committees

·      Complaint channel

·      “Banpu Heart” behavioural survey

·      Employee engagement survey

·      Town Hall Meeting
Customer ·      Customer satisfaction survey

·      Compliant channel

·      Customer visit

·      Response to requests for data disclosure

·      Report on annual maintenance plan and emergency drill
Supplier ·      Regular meeting with supplier
Contractor

 

 ·      Regular meeting with contractor

·      Annual mining contractor meeting
Financial Institution ·      Analyst meeting

·      Publication of Annual Report and Sustainability Report
Business Partner ·      Board meeting at subsidiaries and associated companies

·      Publication of Annual Report and Sustainability Report

·      Report on annual maintenance plan and emergency drill
Shareholder

 

 ·      Annual general meeting of shareholder

·      Publication of Annual Report and Sustainability Report

·      Complaint channel

·      Public information on Banpu’s website
Investor ·      Opportunity investment roadshow

·      Presentation on Opportunity Day organised by Stock Exchange of Thailand

·      Publication of Annual Report and Sustainability Report

·      Public information on Banpu’s website
Media and NGOs ·      Response to requests for data disclosure

·      Fact sheet summary

·      Public information on Banpu’s website
Community ·      Community Consultative Committee (CCC)

·      Stakeholder satisfaction survey

·      Compliant channel

·      Communication with community development officers

·      Public information on Banpu’s website

What actions were taken by Banpu to promote sustainability among its suppliers?

In its 2019 Sustainability Report Banpu reports that it took the following actions for promoting sustainability among its suppliers:

  • Assessing suppliers
  • In 2019, Banpu engaged with 1,992 suppliers in Indonesia, 1,536 suppliers in Australia and 509 suppliers in China. For mining business in Indonesia, 48 suppliers were identified as critical suppliers and 43 of them were assessed for ESG risks, consisting of mining and hauling contractors. For conventional power business in China, out of the 147 suppliers identified as critical suppliers, 92 were assessed for ESG risks, including 37 new critical suppliers.
  • Implementing a Supplier Code of Conduct
  • In 2019, Banpu officially published its Supplier Code of Conduct to become binding conditions included in supplier contracts, making sure that suppliers operate their business adhering to ethical, social, and environmental responsibility. The Supplier Code of Conduct emphasises 7 areas as follows:
    • Business Ethics: operate the business with integrity and transparency in information disclosures to the public, prevent any possible corruption in all dimensions, retrain from conflict of interests, and respect customers’ confidentiality and intellectual property
    • Labour and Human Rights: conduct business with respect for human rights and non-discrimination by complying with labour laws and human rights practices, preventing forced labour as well as providing good working conditions
    • Occupational Health and Safety: comply with occupational health and safety laws in each country, provide a safe work environment to employees, and monitor OHS (occupational health and safety) risks
    • Environment: fully comply with environmental regulations, protect the environment by all means to reduce impacts on biodiversity and conserve natural resources, as well as transparently report environmental issues with effective solutions
    • Community and Society: respect the interests of people in local communities, especially indigenous peoples, immigrants, and vulnerable groups as well as open contractive dialogue with such people
    • Business Continuity: identify possible risks, conduct emergency drills, and immediately notify where situations may become liable to the company
    • Supply Chain Collaboration: encourage suppliers to practice the same in accordance with this Supplier Code of Conduct as a standard for joint business

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) This case study is based on published information by Banpu, 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/

Note to Banpu: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Banpu promotes sustainability among its suppliers appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How Banpu improves water use efficiency https://sustaincase.com/case-study-how-banpu-improves-water-use-efficiency/ Fri, 12 Jul 2019 10:21:35 +0000 https://ccprowebs.com/new-sustaincase.com/?p=9838 As an integrated energy company operating in 10 countries, seeking to be the Asian energy company at the heart of innovation, technology and sustainability, and reduce water consumption intensity. This case study is based on the 2018 Sustainability Report by Banpu 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. Banpu recognises that inefficient water management […]

The post Case study: How Banpu improves water use efficiency appeared first on SustainCase - Sustainability Magazine.

]]> As an integrated energy company operating in 10 countries, seeking to be the Asian energy company at the heart of innovation, technology and sustainability, Banpu engages with communities, academics and related stakeholders to study and improve the efficiency of its water management  Tweet This! and reduce water consumption intensity.

This case study is based on the 2018 Sustainability Report by Banpu 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.

Banpu recognises that inefficient water management may not only cause water crises, but also cause environmental problems associated with discharge of low quality water leading to conflict with local communities or other water users. In order to improve water use efficiency Banpu took action to:

  • conduct risk identification and assessment
  • reduce water loss
  • manage water discharge

What are the material issues the company has identified?

In its 2018 Sustainability Report Banpu identified a range of material issues, such as human capital development, occupational health and safety, community engagement, social compliance, supplier management. Among these, improving water use efficiency stands out as a key material issue for Banpu.

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:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s 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 Banpu engages with:

To identify and prioritise material topics Banpu engages with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Government ·      Occasional visits

·      Support to governmental initiatives and activities

·      Response to requests for data disclosure

·      Publication of Annual Report and Sustainability Report

·      Public information on Banpu’s website
Employee

 

 

 ·      Communication between human resources department and employees

·      Employee involvement in committees

·      Complaint channel

·      “Banpu Heart” behavioural survey

·      Employee engagement survey

·      Town Hall Meeting
Customer ·      Customer satisfaction survey

·      Complaint channel

·      Occasional visits

·      Response to requests for data disclosure
Supplier ·      Regular meeting with supplier
Contractor

 

 ·      Regular meeting with contractor

·      Annual meeting of mine contractor
Financial Institution ·      Analyst meeting

·      Publication of Annual Report and Sustainability Report
Business Partner ·      Board meeting at subsidiaries and associated companies

·      Publication of Annual Report and Sustainability Report

 
Shareholder

 

 ·      Annual general meeting of shareholder

·      Publication of Annual Report and Sustainability Report

·      Complaint channel

·      Public information on Banpu’s website
Investor ·      Opportunity investment roadshow

·      Presentation on Opportunity Day organised by Stock Exchange of Thailand

·      Publication of Annual Report and Sustainability Report

·      Public information on Banpu’s website
Media and NGOs ·      Response to requests for data disclosure

·      Fact sheet summary

·      Public information on Banpu’s website
Community ·      Communication between community development officers and local community

·      Establishment of Community Consultative Committee (CCC)

·      Community satisfaction survey

·      Complaint channel

·      Public information on Banpu’s website

What actions were taken by Banpu to improve water use efficiency?

In its 2018 Sustainability Report Banpu reports that it took the following actions for improving water use efficiency:

  • Conducting risk identification and assessment
  • Banpu has assigned all business units to carry out risk identification and assessment of water resources and report the result and risk mitigation plan to the Risk Management Committee on a quarterly basis. One of the risk identification processes is to verify whether sites are located in a water stressed area under the database of the Aqueduct water risk atlas of the World Resources Institute. Initial assessment found that 3 CHP plants and 6 solar power plants in China, along with 5 coal mines both operating and non-operating in Australia, are located in a water stressed area. As a result, Banpu prepared short-term measures to minimise potential impacts associated with water use by each business unit and is preparing a long-term plan to cover the management at watershed level (both surface water and groundwater) by developing a water accounting framework and water balance.
  • Reducing water loss
  • To increase efficiency of water consumption, Banpu implements projects for production improvement to reduce water loss. The projects include improvements in the efficiency of the water treatment system, water reuse in the original production process such as coal washing or water reuse in other processes, such as water spraying on road to control dust dispersion. Additionally, Banpu has collaborated with a power plant (Banpu’s customer) by utilising treated water of the Springvale mine in Australia that is normally discharged into the public waterways to be used as water in the cooling system. This project can reduce water withdrawal from public water sources.
  • Managing water discharge
  • Due to the increasingly stringent environmental quality control announced by the Chinese government, Banpu will implement measures to manage water discharge and will also change production technology to reuse water in the production process or other activities within the operational sites, as much as possible. For example, Luannan power plant has a plan to construct a new water treatment plant to receive wastewater from both internal and external sources for recycling water in the production process. This will not only reduce the volume of water withdrawal from natural water sources but will also reduce the discharge of wastewater.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed? 

The GRI Standards addressed in this case are:

1) Disclosure 303-1 Interactions with water as a shared resource

2) Disclosure 303-2 Management of water discharge-related impacts

 

Disclosure 303-1 Interactions with water as a shared resource corresponds to:

Disclosure 303-2 Management of water discharge-related impacts corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by Banpu, 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/

Note to Banpu: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Banpu improves water use efficiency appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How Banpu assesses and mitigates environmental and social risks in its supply chain https://sustaincase.com/case-study-how-banpu-assesses-and-mitigates-environmental-and-social-risks-in-its-supply-chain/ Mon, 27 Aug 2018 05:57:16 +0000 https://ccprowebs.com/new-sustaincase.com/?p=7926 As an integrated energy company covering up-stream extraction, mid-stream logistics and down-stream energy generation and service, , providing affordable, reliable and environmental-friendly energy for the Asia-Pacific region. Responsible supply chain management is, thus, a top priority. This case study is based on the 2017 Sustainability Report by Banpu that can be found at this link. Through all case studies we aim to demonstrate what CSR/ 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 Abstract Making sure its suppliers operate in a […]

The post Case study: How Banpu assesses and mitigates environmental and social risks in its supply chain appeared first on SustainCase - Sustainability Magazine.

]]>

As an integrated energy company covering up-stream extraction, mid-stream logistics and down-stream energy generation and service, Banpu seeks to be the Asian energy company at the heart of innovation, technology and sustainability  Tweet This!, providing affordable, reliable and environmental-friendly energy for the Asia-Pacific region. Responsible supply chain management is, thus, a top priority.

This case study is based on the 2017 Sustainability Report by Banpu that can be found at this link. Through all case studies we aim to demonstrate what CSR/ 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

Layout 1

Abstract

Making sure its suppliers operate in a socially and environmentally responsible way is a key priority for Banpu. In order to assess and mitigate environmental and social risks in its supply chain Banpu took action to:

  • divide the supplier management procedure into steps
  • select new suppliers through a Tender Evaluation Process and Contract Negotiation
  • apply policies that mitigate supply chain environmental, social and governance risks

What are the material issues the company has identified?

In its 2017 Sustainability Report Banpu identified a range of material issues, such as leadership development, safety, community engagement, business ethics, contractor management. Among these, assessing and mitigating environmental and social risks in its supply chain stands out as a key material issue for Banpu.

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:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s 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 Banpu engages with:

To identify and prioritise material topics Banpu engages with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Government ·         Occasional visits

·         Support to governmental initiatives and activities

·         Response to requests for information disclosure or report

·         Publication of annual report and sustainability report
Employee

 

 

 ·         Communication between human resources department and employees

·         Develop a communication channel

·         Employee involvement in committees

·         “Banpu spirit” behavioural surveys

·         Employee engagement survey

·         Town hall meeting
Customer ·         Customer satisfaction surveys

·         Develop a communication channel

·         Occasional visits

·         Response to requests for disclosure and report
Supplier ·         Regular meeting with supplier
Contractor

 

 ·         Regular meeting with contractors

·         Executive mine contactor meeting
Community

 

 ·         Communication satisfaction survey

·         Develop a communication channel

·         Establish Community Consultative Committees (CCC)
Media ·         Response to requests for information disclosure or reports

·         Publication of annual report and sustainability report
Civil Society ·         Response to requests for information disclosure or reports

·         Publication of annual report and sustainability report
Investor Shareholder Creditor and Business Partner

 

 ·         Annual General Meeting of Shareholders

·         Board meetings at subsidiary and associated companies

·         Opportunity Investment Road Shows

·         Develop a communication channel

·         Analyst Meeting

·         Presentation on Opportunity Day organised by Stock Exchange of Thailand

What actions were taken by Banpu to assess and mitigate environmental and social risks in its supply chain?

In its 2017 Sustainability Report Banpu reports that it took the following actions for assessing and mitigating environmental and social risks in its supply chain:

  • Dividing the supplier management procedure into steps
  • Banpu has divided the supply chain management process into the following steps:
    • identification of major suppliers with a significant impact on the company’s operations
    • assessing risks: considering environmental, social and governance risks that may impact business operations
    • mitigating risks through preventive and mitigation measures, such as site visits and meeting with potential suppliers to identify environmental, social and governance risks
    • monitoring progress
  • Selecting new suppliers through a Tender Evaluation Process and Contract Negotiation
  • Banpu selects all new suppliers by implementing a Tender Evaluation Process and through Contract Negotiation, based on the following criteria:
    • reliability and quality of product and service delivery
    • cost effectiveness
    • environmental and social responsibility
    • alignment of suppliers’ operations with Banpu’s corporate governance policy
  • Applying policies that mitigate supply chain environmental, social and governance risks
  • To mitigate environmental, social and governance risks from suppliers’ operations, Banpu implements a range of policies that cover every aspect of suppliers’ and contractors’ operations, including business ethics, the environment, occupational health and safety and human rights. In addition, Banpu is currently developing a Supplier and Contractor Code of Conduct.

Which GRI Standards have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 414-1 New suppliers that were screened using social criteria

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by Banpu, 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 at the link:

https://www.banpu.com/backoffice/upload/Banpu_SD_Report_2017_EN.pdf

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Banpu: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Banpu assesses and mitigates environmental and social risks in its supply chain appeared first on SustainCase - Sustainability Magazine.

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