The rapid and complex changes in the environment over the past few years have significantly impacted on the supply chain, requiring the Company to adapt on various fronts. As a result, the Company has implemented sustainable policies and strategies to ensure continuous business operations while considering the significant impact on stakeholders.
To sustainably drive the business forward, the Company has implemented comprehensive policies and strategies focusing on all dimensions, including social, environmental, and good governance. The Company firmly believe that adhering to sustainable development policies will enable us to grow and thrive amidst the intensity of crises and rapid global changes. The Committee is committed to delivering innovations and cutting-edge technologies to enhance people's quality of life in society. Furthermore, the Company has expanded the business in the distribution of alternative energy products to contribute to reducing reliance on primary energy sources.
For sustainable development policies and management guidelines, the Sustainable Development Team, led by the Managing Director and Management, is responsible for proposing plans, creating action plans, and reporting to the Corporate Governance and Sustainability Committee and the Board of Directors. These plans cover 3 dimensions: environmental, social, and governance and economic aspects, with well-defined and appropriate targets and indicators in line with the SET Sustainability Reporting Guide for listed companies.
The Sustainability Development Working team has established and periodically reviews strategies for sustainable development efforts each year to ensure alignment with evolving environmental conditions, with a steadfast commitment to delivering maximum benefits to all stakeholders. These strategies encompass vital issues such as technology acquisition, innovative practices, product and service responsibility, energy efficiency, renewable energy utilization, air pollution reduction, employee care and development, human rights management, and community and societal well-being promotion.
The Company engages in wholesale business of computers, software, peripherals, and various office automation equipment in Thailand. Its primary activities include sourcing products from suppliers, obtaining funds from various sources, product development, and distribution of goods and services to retailers for onward delivery to end-users, as well as marketing, sales, and after-sales service activities. For support activities, in addition to other infrastructure management activities such as organizational development, various systems used in operations, buildings and facilities, and public utilities, the Company also undertakes activities in developing new technologies for internal use to enhance operational efficiency and for sale to ensure maximum benefit for customers and end-users.
There are many groups of stakeholders in the Company’s supply chain. It can be classified as the internal stakeholders consisting of shareholders/investors and employees, and the external stakeholders consisting of partners, regulatory bodies, financial institutions, customers, consumers, society, community and environment who are affected from the business of the Company.
The Company operates under the principle of good corporate governance and sustainability with the aim of maximizing benefits and meeting the expectations of all stakeholders. The details are as follows:
Stakeholder | Stakeholder’s expectation | Example of activities to respond to the stakeholders’ expectation |
---|---|---|
Shareholders |
|
|
Employees |
|
|
Partner |
|
|
Customers |
|
|
Consumers (End-users of the Company's products and services distributed through customers who is dealer.) |
|
|
Financial Institutes (Assistant in promoting agility in business operations and expansion) |
|
|
Regulatory Body (Such as Revenue Department, Custom Department, The National Broadcasting and Telecommunication Commission and Thai Industrial Standard Institution etc.) |
|
|
Community/ Society/ Environment |
|
|
In the current situation where the world is facing increasingly severe environmental pollution affecting livelihoods daily, the Company, as a technology leader operating under good corporate governance principles and with a strong commitment to environmental concerns, has established policies and practices regarding the environment to address and prevent environmental pollution issues through various initiatives. These include reducing energy consumption, using renewable energy, mitigating greenhouse gas emissions, and minimizing unnecessary use of natural resources. The aim is to collaboratively address environmental challenges sustainably because ultimately, a healthy environment contributes to sustainable growth.
Environmental Implementation Performance
To achieve the objectives outlined in environmental policy and guidance, the Company undertakes environmental initiatives to address persistent issues. Key projects undertaken include:
1) Green Procurement
The Company implements green procurement processes starting from the inception of the business, which involves sourcing products and services from partners for distribution. There is a focus on procuring environmentally friendly products and services. Currently, the Company acts as a distributor for products that support renewable energy use and are environmentally friendly, such as solar power generation systems, solar-powered lights, various LED lights, and EV chargers, which significantly reduce energy consumption.
Additionally, the Company provides green services through its Cloud business, utilizing systems for data storage instead of wasteful materials. Presently, there are more than 970 companies using these services. Beyond procurement, the Company prioritizes green logistics and has adopted the Sky Frog application to promote green transportation. Moreover, the Company's end-to-end business processes involve electronic payment systems instead of paper-based transactions, contributing to environmental sustainability. Further details on these projects will be discussed later.
2) Safe and Green Products
The Company is committed to delivering products that are safe for consumers and environmentally friendly. Therefore, the selection process for partners and products is considered crucial in ensuring the effectiveness of this commitment. In selecting partners and products, the Company has clear policies in place and a dedicated team to study and monitor technology as well as engineering practices. This is to ensure that the products selected for distribution meet safety standards and are made from safe and environmentally friendly materials. Additionally, products that meet safety standards are ensured certification from appropriate regulatory bodies. In the year 2023, the Company did not encounter any disputes regarding product safety with customers or consumers.
3) Green Logistics
The Company is committed to being a part of reducing pollution and airborne particulates for the better quality of life for everyone in Thai society. Considering the Company's supply chain, effective logistics management processes can significantly contribute to sustainable reduction of air pollution. Therefore, the Company has invested in environmentally friendly logistics management systems, known as Green Logistics, by adopting the Sky Frog application.
Sky Frog is a cloud-based software on the Windows Mobile platform that calculates the most fuel-efficient routes and saves travel time for drivers. This precise route planning results in accurate delivery scheduling and reduces the amount of fuel consumed, a critical factor in reducing pollution and airborne particulates. Moreover, the system can monitor vehicles using Global Positioning System (GPS) connected to Cloud Computing. This enables the headquarters to track vehicle routes in real-time and display speed metrics, allowing users to monitor vehicle speed and further reduce road accidents.
4) Electronic Workflow
The Company has developed an Electronic Workflow system to replace the printing of documents for various approvals for over 20 years. Currently, there are over 100 Electronic Workflow systems in operation. In addition to enhancing work efficiency with modern notification systems, these systems also contribute significantly to paper resource conservation. In addition to enhancing work efficiency with modern notification systems, these systems also contribute significantly to paper resource conservation.
5) E- Billing for Environmentally Friendly
Apart from logistics, billing activities can also have a significant impact on the environment, no less than other activities. Whether it is using wasteful paper or consuming fuel for driving to deliver bills, the Company has recognized the environmental impact of these activities. Therefore, the Company has developed an E-Billing system, which allows partners to invoice the Company through the website www.sisthai.com without the need for vehicle transportation. This project is a part of the society's efforts to reduce air pollution, airborne particulates, and global warming caused by driving vehicles and paper usage. The Company has encouraged partners to stop using traditional billing methods, and they have received good cooperation from partners since 2017 to date.
6) E-Tax Invoice & E-Receipt
Due to the nature of the Company's business, which involves selling products and services with regular issuance of tax invoices and receipts to customers, the Company has seen an opportunity to reduce paper resource usage by transitioning to electronic formats for tax invoices and receipts. This system has been approved by the Revenue Department. Since its implementation starting from January 2024 onwards, it has been observed that this system significantly reduces costs and paper resource consumption.
7) Smart Meeting Room
Meetings are an activity that the Company supports and promotes as part of fostering a culture where every employee can engage and contribute through discussion. Whether it is internal meetings, meetings with partners, or meetings with customers, the Company's internal structure includes a significant number of employees who work remotely beyond the head office. This makes meeting management resource-intensive, adds to travel expenses, and contributes to air pollution.
To reduce resource consumption and air pollution, the Company has upgraded its meeting room system. This investment includes both software and hardware enhancements to develop all meeting rooms into Smart Meeting Rooms. These rooms enable efficient meeting management through electronic systems or online meetings via computers or smartphones, without spatial or distance constraints.
8) Energy Saving Electrical Equipment
The Company aims to be a part of the energy conservation efforts. Therefore, the Company has a policy to use energy-saving electrical equipment, such as LED light bulbs, instead of traditional ones, both in the head office and warehouse. LED light bulbs have a longer lifespan, lasting up to 60,000 - 100,000 hours without reducing brightness, compared to fluorescent bulbs, which last only about 10,000 hours. Additionally, LED bulbs provide a brightness level of 80 - 120 lumens per watt, which is more than twice the efficiency of fluorescent bulbs. The Company also implements automatic light on-off systems using motion sensors, automatic scheduling for turning electrical appliances on and off, and separates the office layout into sections with individual light switches, allowing for selective lighting in necessary areas.
9) Environment Knowledge Encourage for the Employee
Instilling environmental awareness among employees is considered crucial. Therefore, the Company has incorporated environmental courses into its E-learning system, accessible to all employees. Additionally, participation in the ESG DNA program, which focuses on ethical, social, and environmental management, is encouraged. Through self-directed learning facilitated by the SET, employees gain knowledge and awareness of sustainable environmental practices. With enhanced understanding and consciousness, employees willingly adhere to the Company's environmental requirements. This includes assigning responsibility for turning off lights during breaks and after work hours, adjusting air conditioning temperatures appropriately, and switching off electrical appliances when not in use or when unnecessary.
10) Substitute Energy Source installation (Sollar Cell)
Currently, the Company is an importer and distributor of solar power systems, which are renewable energy sources providing an alternative option for consumers. Apart from helping consumers save costs in the long run, solar power systems are also a significant development in reducing environmental pollution. The Company is in the process of preparing for the installation of solar power systems at its warehouses. The long-term goal is to install solar power systems that can cover the Company's entire electricity usage.
The Company's initial plan involves installing solar power systems to generate electricity from renewable energy sources for use at its warehouses, with the expectation of completion by 2025. Subsequently, installations will be carried out at other offices, with the entire installation expected to be completed by 2032.
11) Environment Management Target and Plan
Amid the current escalating global warming and increasingly severe climate change, largely attributed to human activities, the Company is fully aware and prepared to play its part in addressing these long-term issues. The Company has set a target to achieve Net Zero greenhouse gas emissions by 2065 to support the Thai government's commitment declared at the 26th United Nations Framework Convention on Climate Change (COP26) held in Glasgow, United Kingdom, on November 1st, 2021. Thailand aims to reach Carbon Neutrality by 2050 and Net Zero Greenhouse Gas Emission by 2065.
The Company places importance on efficiently managing natural resources to mitigate environmental issues. This includes energy management, water resources, waste, emissions, and greenhouse gases resulting from business operations. The Company has developed technologies, processes, and innovative products and services to enhance efficiency and convenience in both work and daily life for consumers. All of these efforts are carried out under sustainable environmental and social stewardship. For 2023, the Company's environmental management initiatives include:
Short-term target produce electricity from solar cells to replace the entire electricity consumption of our warehouse facilities, which currently rely entirely on the MEA, by 2026. In the base year of 2023, the warehouses consumed 371,935 kWh of electricity, accounting for approximately 30% of the total electricity consumption of the Company, including head office, branches, and warehouses, which totaled 1,208,885.65 kWh.
Strategy installation of solar cells at the warehouse, utilize energy-efficient light bulbs, automatic lighting system controlled by motion sensors, encourage everyone to save electricity, and allow some employees to work from home.
Long-term target produce electricity from solar sells to replace the usage of the entire electricity from the MEA and PEA by 2032.
Strategy installation of solar cells at all offices, utilize energy-efficient light bulbs, automatic lighting system controlled by motion sensors, encourage everyone to save electricity, and allow some employees to work from home.
In order to achieve the greenhouse gas emissions reduction goals, the Company has initiated the collection and consolidation of greenhouse gas emission data using the operational control approach. Emissions are calculated based on the guidelines provided by the Fifth Assessment Report: AR5 of the International Panel on Climate Change (IPCC), covering scopes 1 and 2 emissions. Below are the details:
Target Reduce Scope 2 emissions within by 30% by 2026 (compared to 2023 as based year) and achieve net zero greenhouse gas emissions within 2065.
Strategy Even though the nature of the Company’s business does not involve significant greenhouse gas emissions from production processes, the Company has a policy to reduce greenhouse gas emissions at all relevant points to achieve net zero emissions. This initiative begins with various operational processes within the organization.
Target Due to the nature of the Company's business, which involves procurement and distribution of goods without utilizing water resources in its operations, coupled with the current average water consumption per person in Thailand ranging from 50 to 200 liters per day, which is relatively low, the Company aims to maintain its water usage level below the average water consumption per capita in Thailand.
Strategy Although the Company's business operations do not heavily rely on water resources, the Company recognizes the importance of conserving water resources and supports water conservation efforts. This includes encouraging all employees to use water efficiently, implementing measures such as shutting off water valves during holidays, and regularly inspecting equipment to ensure they are in good working condition to prevent accidents such as burst water pipes. Additionally, the Company has a policy allowing some employees to work from home, which helps save water resources. These practices will continue to be upheld to support sustainable resource conservation efforts in the future.
Target Despite the nature of the Company's business operations that do not generate waste and hazardous materials, for which the Company is not responsible for disposal, treatment, stabilization, reuse, and/or recycling expenses, the Company still places importance on reducing the amount of waste, refuse, and pollutants to preserve the overall environment and aims to drive sustainable practices within the organization. Therefore, the Company has set continuous goals to reduce waste, refuse, and pollutants using various strategies, especially leveraging different technologies to achieve this objective.
Strategy The Company has developed an electronic workflow system to replace paper-based forms that have been in use for over 20 years. Currently, the Company utilizes over 100 workflow systems to facilitate operations and initiates the e-tax invoice system. If paper usage is necessary, the Company encourages using double-sided printing or QR code systems for downloading meeting documents instead of printing.
Additionally, the Company practices waste segregation, where items no longer in use but still functional are donated to organizations or individuals in need. Furthermore, allowing employees to work from home is another tool to reduce pollutants by saving resources on commuting.
Society and communities are another important stakeholder group that the Company recognizes as having significance. The Company is aware that its business activities may have both direct and indirect social impacts. Therefore, it has established social policies and practices through various initiatives, including projects involving internal stakeholders such as employees and external stakeholders such as customers, partners, and communities. The Company's continuous aim is to sell and develop modern products to enhance the standard of living in Thai society.
The Company promotes community and societal development by aiming to foster sustainable social development through empowering communities to be self-reliant. This is achieved through several key initiatives, including:
Employee and Workforce
One of the Company's visions and missions is to provide good opportunities and support for employees to work to their full potential, to be a warm and growing family together. The Company has a Human Rights Policy that emphasizes fair labor practices and respect for human rights, equality, and non-discrimination in terms of labor recruitment, compensation, promotion, training, and employee development, regardless of gender, age, education, ethnicity, and religion. This includes hiring employees from external companies to work in the Company, elderly people, and persons with disabilities to create opportunities, create careers, and ensure stable income, which is part of sustainable development goals.
Furthermore, to foster a sense of belonging among all employees as part of the Company's family, the Company undertook significant initiatives related to employee welfare, including:
To provide employees with opportunities to work in roles they enjoy and are suited for, when the Company plans to hire additional staff, the Company open up opportunities for current employees to apply first. Employees must go through a selection process conducted by the respective departments they wish to join, similar to the process for new hires. Additionally, the Company also encourages employees to notify us when they wish to transition to other roles that better suit their skills. In every case, the Company evaluates suitability.
The Company supports equal opportunity without discrimination by creating job opportunities for the disenfranchised and disabilities, and also contributed funds to the Empowerment of Persons with Disabilities Fund as required by regulations, consistently.
Furthermore, to adhere to ethical principles and prevent corruption, the Board of Directors has developed a policy regarding the hiring of government officials as a guideline for operations.
The Company has a policy to encourage employees to develop their knowledge, potential and ability in their career paths as well as good attitude, growing together with the Company through a self-learning system, training, and seminars to improve employee efficiency.
The Company promotes employee health, occupational safety, and well-being as follows:
The Company organizes an annual health check-up for all employees, which encompasses comprehensive health examinations. Additionally, employees are given the opportunity to choose additional tests beyond the standard program provided by the Company, promoting their well-being. These check-ups aim to encourage employees to maintain good health by providing them with information about their health status. Moreover, the Company facilitates convenience for employees by arranging for medical professionals to advise on health practices and address any queries at the Company's premises.
The Company supports for vaccination expenses by offering employees the option to receive vaccinations against influenza at a subsidized rate of 50% of the cost. The Company covers the remaining 50% of the cost and facilitates convenience by arranging for nurses to administer the vaccinations on-site. In addition to these vaccinations, if other disease outbreaks are identified, the Company will consult with additional health authorities to find ways to prevent other potential diseases.
Due to the current situation of the COVID-19 pandemic and air pollution, the Company has implemented measures to allow some employees to work from home. This initiative aims to reduce travel and ensure the well-being of employees by minimizing their exposure to potential risks. Additionally, the Company has provided equipment such as laptops, computer monitors, and headphones to facilitate more efficient remote work.
The Company has a policy that allows employees to take maternity leave for up to 98 days. During the first 45 days, employees receive their regular salary. Furthermore, the Company has a policy aimed at facilitating the return of employees who have taken maternity leave to their previous positions, provided they are capable and proficient in their roles.
The Company prioritizes workplace safety as a fundamental aspect of its operations. From designing the work environment to selecting and providing high-quality safety equipment, every effort is made to ensure a safe working environment for all employees. The Company took a proactive step by installing UV-C light tube equipment to effectively eliminate viruses and bacteria from the air within the premises. This equipment is automated to operate during nighttime hours when the premises are unoccupied, enhancing safety and instilling confidence among employees.
Despite the challenges posed by the COVID-19 pandemic, the Company remains steadfast in adhering to disease prevention DMHT measures, as advised by the Ministry of Public Health. These measures include:
The Company is confident in the development potential of its personnel and is committed to nurturing their capabilities for sustainable growth alongside the organization. Since 2016, there has been a selection of internal personnel for a sustainable leadership development program, aiming to cultivate their potential to grow into managerial roles within the Company. This program includes courses covering various areas of knowledge and skills development, such as English language for business, wherein participants receive training from language institutions in the United Kingdom, and courses on personal development towards managerial roles provided by leading institutions.
Customers
The Company prioritizes quality, value, durability, safety, and environmental sustainability when selecting products for distribution. This commitment has earned us continuous trust from customers, who rely on the approach to selecting high-quality products, including warranty coverage and post-sales services, for their convenience. In addition to the service center in Bangkok, operational every day, the Company expanded service centers to 5 key provinces: Chiang Mai, Khon Kaen, Ubon Ratchathani, Phuket, and Songkhla (Hat Yai), providing enhanced accessibility and support for our customers nationwide.
Partner
The Company is well aware that sustainable growth relies on collaborative development among all stakeholders, including partners. Therefore, the Company established Codes of Conduct for Business Partner to guide collaborative efforts, ensuring that business dealings with them are conducted appropriately, transparently, and fairly. This includes respecting intellectual property rights, avoiding unfair practices, and providing avenues for partners to voice grievances if they feel they are not being treated fairly. In addition to vendors who sell products to the Company, the Company also prioritize the well-being of external partners who are contracted to work with us.
Community
It cannot be denied that communities play a crucial role in business operations, whether directly or indirectly. Therefore, the Company acknowledges the importance of community development alongside business activities. Through various initiatives, the Company aims to support sustainable community development.
To promote sustainable community development, the Company has a policy to develop persons who will serve as a crucial foundation for collaborative community development. The Company implements a program to hire recent graduates to assist in creating opportunities, livelihoods, incomes, and quality of life. Additionally, this initiative fosters exchange of perspectives for business and community development, contributing to driving the overall economy and sustainable community development.
Due to the nature of the Company's business, which primarily involves importing and distributing goods, transportation is a fundamental process in its operations. In addition to promoting green transportation to care for the environment, the Company has a policy of providing insurance coverage for vehicles used in product transportation. This initiative aims to address concerns, alleviate worries, and improve the quality of life for transportation employees, who are considered an integral part of the Company's close-knit community.
Business and Social Innovation Development
Transitioning to a Data-Driven Company
The Company has been striving to empower all employees to use data in their work to aid decision-making, increase sales, reduce expenses, manage inventory effectively, etc. Despite employing a leading ERP system along with a Business Intelligence system that allows all employees to search and analyze data, only 2% of employees actively use it. This is because the system is complex and lacks flexibility to adapt to new data needs. Consequently, it operates slowly, and in many cases, requires data manipulation to obtain the desired format. Additionally, approximately 5% of employees from the initial 2% prepare data on Microsoft Excel and analyze it using Microsoft Excel's Pivot Table feature, which requires expertise. This approach has not been as successful as desired in terms of being a company that operates/decides with data.
To enhance data accessibility and analysis efficiency, the Company has introduced a new tool called ThoughtSpot for data storage. This enables employees to easily access and utilize data, consequently increasing employee engagement. ThoughtSpot is a Search and AI-Driven Analytics Platform designed for user-friendly operation, employing a search approach similar to Google's search engine, which is familiar to all employees. The migration of data from the old system to ThoughtSpot began in 2022 and the system became operational in 2023. This system allows data retrieval by entering keywords into the search box, yielding results in both table and graphical formats.
When starting to use the system, there will be a box provided for users to input the data they want to search for. Once the data is entered, relevant information will be displayed. Users can also save different queries to define the scope of the data or add additional comments for further insights.
In the usage process, users can input keywords into the search box, such as "sales," "yearly," and "last 5 years." The system will then search for data and present it in a graphical format, illustrating the Company's total sales for the past 5 years instantly. Users can also choose to display the data in table format by selecting the table icon. Furthermore, users can easily download processed data for use in other programs.
Users have the flexibility to specify additional details to obtain customized data. For instance, specifying customer names or product names in the search box will yield data specific to those customers or products. Additionally, users can save search formats for later use and share prepared reports with other employees, fostering collaboration and diverse perspectives in data analysis.
ThoughtSpot is a vital tool in transforming the organization into a data-driven company that bases its decisions on data analysis. After implementing ThoughtSpot and integrating past sales data into the system, there has been a significant increase in the percentage of users accessing the system, rising from 2% to 56%. It is believed that this system promotes access to data for all employees, facilitating informed decision-making and improving overall company operations, benefiting both the Company and stakeholders involved.