Minor International Public Company Limited

Message from Chairman & Chief Sustainability Officer

As Minor International continues to excel on its path as a global company, we have also embarked on a path of change, one that will strengthen our ability to compete on the world stage, sustainably.

In today’s fast-changing world, Minor International will foster a culture that embraces and encourages change, while maintaining high standard of good corporate governance and risk management, and ensuring the sustainability of our business and our multiple stakeholders.

Our Sustainability Vision remains ‘to strengthen long-term capabilities and performance through sustainability’. This affirms that in the time that changes are inevitable, we have to constantly adapt and fulfill our obligation to grow and sustain our business, not just for the benefits of our shareholders and investors, but also to create positive impact for the economy, our people, our society and our planet.

Last year, Minor International established its first set of eleven 5-year sustainability goals which addressed the material topics that are important to both Minor and our key stakeholders. This year we have added another two goals. The goals are aligned to our sustainability strategy and we tracked our annual performance against them. We will continue to monitor, develop and refine our measurements to ensure our sustainability efforts support Minor’s sustainable growth on the world stage.

Our sustainability strategic direction – with the focus on people development, sustainable value chain, environmental management, good corporate governance and shared value creation – remains true during this time of transformation.

Minor International relentlessly focuses on People Development with our belief that people are our greatest assets. We continue our efforts to develop our leaders and employees, invest in educational and career support for children, youth and underprivileged community members, and promote a social responsibility mindset among our people and peers. Last year, Minor has empowered and supported over 400,000 people through our various CSR and people development initiatives. We are proud to share that on our ‘Founder’s day’, Minor’s group-wide annual day of good deeds alone, the group contributed over 17,000 volunteer hours and impacted over 10,000 beneficiaries. NH Hotel Group also joined us for the first time on this event with almost 1,000 volunteers and created good will among our team members and communities. On educational support, we continue close collaborations with vocational schools in Thailand. As a result, 43% of students from our Minor Corporate University (MCU) program returned to work within Minor’s operations. As further contribution of our experience in hospitality industry, Minor Hotels announced the launch of the Asian Institute of Hospitality Management (AIHM), in academic association with Les Roches Global Hospitality Education.

The hotel school, set to open in 2020, aims to improve Thailand’s tertiary education and develop employability and transferable skills. Our internal development programs are also bearing fruits with many success stories attained from various programs.

We promote Sustainable Value Chain by driving to ensure sustainable supply chain for our operations and establishing long-term partnerships with our partners to achieve mutual sustainable success. In line with our long-term goal, in 2019, 18% of Thailand local tier 1 food & packaging suppliers were assessed on sustainability risk. All of the identified high risk suppliers were audited and development plans identified within the year. We strive to source sustainably and locally where possible, and in 2019, 95% of our suppliers in Thailand and Europe are local.

To achieve sustainable value chain, we also seek to empathize our customers’ needs and enrich our customers’ experience through end-to-end engagement, and by delivering the best products and services. We are cognizant of the customers’ growing demands towards health and wellness and have explored different product offerings such as plant-based proteins, cold-pressed juice, low sugar ice-cream, as well as establish partnerships to develop wellness centers in our hotels.

We aspire in Environmental Protection and strive to minimize the environmental impact from our operations. We have established goals of reducing energy, water, and CO2 emission intensity for Minor Hotels by 20% within 2023 from 2016 baseline. In 2019, the cumulative reductions are 2%, 16% and 3% respectively. This year, we have added a new long-term goal to reduce 75% of our single-use plastic in Thailand by 2024. Many initiatives are underway to ensure we achieve this goal, such as reduction in plastic straws, plastic bags and utensils, and the redesign of our packaging to reduce plastic where possible. We promote biodiversity conservation wherever we have a footprint. Currently, 72% of our nature-based hotels have at least one long-term conservation initiative. We also continue our support for conservation initiatives and education through our foundations, properties and partners, including the Golden Triangle Asian Elephant Foundation, Mai Khao Marine Turtle Foundation, conservation of sea turtles and coastal habitats in collaboration with IUCN in Sri Lanka, Holistic Approach to Coral Reef Protection in the Maldives, the Cardamom Tented Camp in Cambodia, and the Land & Life Foundation in Africa.

As a foundation to achieve true sustainability, we emphasize Good Governance and Responsible Business culture. Minor International was recognized as the winner of Board of The Year Award, and received Excellent CG Scoring by the Thai Institute of Directors Association for the seventh consecutive year. In addition, the company was also re-certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC). As Minor embarks upon organizational transformation, we introduced a new position of Chief Sustainability Officer, and appointed John Heinecke to this role. John will be overseeing Minor’s sustainability and governance efforts, ensuring continuity of cultures and succession in collaboration with our Chief People Officer, and strengthening partnerships.

Minor International believes that sustainability can only be achieved through Shared Value Creation to our operations. As a demonstration of such achievement, We are proud to report that in 2019 Minor International was included in the Dow Jones Sustainability Emerging Markets Index for the 6th consecutive year, the FTSE4Good Index Series for the 4th consecutive year, received MSCI ESG Rating of AAA, received Best SET Sustainability Awards for the 2nd consecutive year, and was included in the list of Thailand Sustainability Investment (THSI) by the Stock Exchange of Thailand (SET) for the 5th consecutive year.

On behalf of the Board of Directors and Minor’s Management Committee, we would like to take this opportunity to thank all our stakeholders – our customers, employees, shareholders, partners, government, non-profit organizations and communities – for the continued trust, support, collaborations and contributions. We look forward to sharing more sustainable successes with you in the coming years.

William E. Heinecke
Chairman

John Scott Heinecke
Chief Sustainability Officer