This presentation was part of the ProSPER.Net Leadership Programme 2017 'Building Transformational Leadership Towards the SDGs'

1. Why we need to develop
corporate sustainability?
Pensri Suteerasarn
President
Thai Listed Companies Association
July 1, 2017

2. Greenpeace calls on Thai Union
to reject fishing practices that
abuse human rights & the
environment; company responds

3. Author: Thai Union
…[w]e welcome the work that Greenpeace is undertaking to drive change
and improve sustainability through global tuna supply chains…We take
issue, however, with some of the claims that Greenpeace is making about
Thai Union and its operations. Despite reports, we have policies in place
that strictly prohibit the purposeful capture of sharks and the abhorrent
practice of shark-finning, and ensure that all of our operations comply with
every national and international legal requirement…Through our Business
Ethics and Labor Code of Conduct, we uphold strict policies ensuring that
anyone employed by Thai Union or within our supply chains is treated with
respect; we strive to comply with every law – both national and
international - to protect human rights…

4. Costco and CP Foods face lawsuit over alleged
slavery in prawn supply chain
19 August 2015, The Guardian
“Legal claim filed in California seeks injunction against US retailer to prevent sale
of prawns produced by Thai supplier unless labelled a product tainted by slavery”
Human trafficking for forced labour and slavery has become endemic in the Thai
fishing sector, a Guardian investigation found last year

5. Corporate sustainability performance
is connected to financial
performance?

6. What percentage of investors do
you think would say that a
company’s sustainability
performance is materially
important to their investment
decision-making?

7. Nine in 10 respondents, all professional
investors, agreed – at least “to some
extent” – with the following statement:
“A company’s good sustainability
performance is materially important for
investors when making investment
decisions.”

9. What is sustainable investing? How does it
differ from socially responsible investing?
We define sustainable investing as fully
integrating environmental, social and
governance factors — what we call ESG factors
— into investment management.
CEO of Pax World Management and the Pax World Funds sustainable
investment platform
Joseph Keefe

10. What metrics do you use to assess a company’s
sustainability?
We look at all kinds of key performance indicators.
Under environment, we’ll look at companies’
emissions, disclosures, recycling, energy efficiency,
energy use, their carbon footprint and on and on.

11. Under social issues, we’ll look at whether there
are human rights or labor problems in [a
company’s] global supply chain. We’ll look at
how companies treat women and what they’re
doing about gender and equality.

12. Under governance, we’ll look at CEO
compensation, whether there are conflicts
between shareholders’ interests and
management’s interest, and so forth.

13. What are the non financial information?
The term “nonfinancial information” is often
used to refer to data on environmental issues,
but in reality it covers a much broader area.

14. in the marketplace outside of accounting, the term
nonfinancial information is used more broadly.
Nonfinancial information involves issues related to:
sustainability; corporate responsibility;
environmental, social and governance (ESG); ethics;
human capital; and environment, health and safety
(EH&S).
Source : The road to reliable nonfinancial reporting, EY

16. Key challenges
The challenges of NFR, and performance management generally,
depend on the maturity of the organization:
• Starters are just commencing with nonfinancial performance
management, typically facing challenges related to definitions,
data collection, governance and organizational competence.
• Front-runners are advanced users of nonfinancial
information, typically facing challenges related to reporting
complex supply chain disclosures (e.g., Scope 3 supply chain
emissions) and developing the systems and information
necessary to enable a practitioner to perform a reasonable
assurance engagement.
• In between the two are those in the middle-of-the-pack, who
are striving to further hone their NFR capabilities.
Source : The road to reliable nonfinancial reporting, EY

17. Common pitfalls
Companies face a number of common pitfalls that can impact
their ability to develop reliable NFR, including:
• Reliance on one individual
• Undocumented processes/controls
• Making commitments without clearly defining how they will be measured
• Internal control environments
• Limited formal governance structure over reporting oversight
and approvals
• Lack of generally accepted estimation methodologies
• Lack of baselines and baseline management
• Use of unexplained jargon
• Boundaries that are unclear and/or inconsistent with financial reporting
• Undisclosed uncertainties in data (i.e., the degree of
estimation uncertainty in the estimates being made)
Source : The road to reliable nonfinancial reporting, EY