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SUSTAINABILITY REPORT 2017
THÔNG TIN CHUNG VỀ TẬP ĐOÀN
CONTENT
MESSAGE FROM THE CHAIRMAN
PART 2: 2017 JOURNEY 70
PART I: OVERVIEW (GRI 100)
I. SUSTAINABILITY IN CORPORATE GOVERNANCE 74
I. THE PAN GROUP OVERVIEW 6
1. Governance structure 74
1. Company profile 8 2. Executive governance activities 78
2. Vision-Mission-Guiding Principles 10 3. Risk management 82
3. Total asset, owner’s equity and revenue 12
4. Milestones 18 84
5. Core business, distribution location and channels 20 II. BUSINESS DEVELOPMENT (GRI 200)
6. Principles and standards of the group 32 90
7. Subsidiaries and affiliates 34 III. ENVIRONMENT (GRI 300)
8. Supply chain from farm to table 36 104
9. The affiliate industry association 38 IV. SOCIETY
II. CONTEXT 42 PART 3: SUSTAINABILITY-OPPORTUNITIES AND CHALLENGES 130
1. Economic context 42 II. ACHIEVEMENTS 132
2. Environmental context 46
3. Social context 48 II. OPPORTUNITIES IN 2018 AND FOLLOWING PHASES 136
III. CHALLENGES AND SOLUTIONS 137
III. OVERVIEW ON SUSTAINABILITY REPORT 50 IV. OBJECTIVES FOR 2018 139
1. Sustainability report 2017 50 1. Business 139
2. Purpose of the report 53 2. Environment and society 140
3. Scope of the report 54
4. Define the report content and the stakeholder’s involvement 55
5. Reporting practice 66 GRI Standards 142
6. External guarantee 67
2 THE PAN GROUP
MESSAGE FROM THE Success on the economic area continues to motivate de-
velopment in others. At the micro level, domestic enter-
prises – including The PAN Group – have also obtained
nism to ensure the compliance. The PAN Group will be the
pioneer in applying sustainable development criteria to its
production and business activities, in line with the interna-
CHAIRMAN several achievements on the development journey, ex-
ceeded the sales and profit targets, realized the growth,
tional practices to realize our vision of becoming a leading
group in the field of agricultural and food in the region. We
and especially demonstrated a vigorous transformation are excited and proud to announce our success not only in
to identify and seize opportunities for development in the terms of economic aspect but also in sustainable develop-
context of an increasingly global integration. ment strategy. This success affirms our right orientation
Since the inception of our journey leveraging Vietnam's and brings benefits not only to The PAN Group, but also
Dear Esteemed Shareholders and Business food and agriculture, the BOD has clearly defined the de- stakeholders. We would like to express our gratitude to
Partners! velopment strategy in line with to sustainability, environ- all shareholders, partners, customers and employees for
mental protection, safety and social responsibility. Over their support and contribution during the past years. The
Vietnam’s economy recorded a successful the years, this orientation has always been consistently PAN Group will strive to show appreciation through spe-
year with many impressive figures in 2017: understood and determinedly executed by The PAN Group cific actions, aiming at sustainability and immortality. The
GDP increased by 6.81%, the highest ratio and its member companies. Now, we have been reaping Group has also affirmed its commitment to transparency
in the last 6 years; inflation remained low, the initial outcomes from these determinations and en- and openness in its operations as the principles of all ac-
increased by only 3.53%. The year 2017 also deavors. Not only achieving economic success and ex- tions to win your long-term trust and companionship.
marked a new record for the national trade panding the scale of operations, The PAN Group has built
value at excessing of US$400 billion. Total up its reputation in the agricultural and food sector, ob- Entering 2018, in the hustle of the industrial revolution
export of the agriculture in 2017 was over taining the consensus and support of the community and 4.0, the artificial intelligence development and the global
US$36.37 billion, up 13% over the same peri- society. The specific actions are the strongest demon- integration knocking on the door of every nation and its
od, a big win of the sector. stration of commitment to sustainable development, and enterprises, The PAN Group optimistically foresees po-
gradually create sustainable values for The PAN Group. tential opportunities in the future. We will be determined
to do our best and confidently turn these opportunities
Investing in infrastructure as well as technology to pro- into actual advantages, and above all, the sustainable de-
mote efficiency and environmentally friendly production, velopment strategy is always the lodestar for every plan
the factories in Lafooco and PAN Food have been contin- and activity. We understand that this is the key to obtain-
uously upgraded to minimize energy consumption, elimi- ing greater success in the next journey. The PAN Group
nate and minimize waste and waste water discharged to expects to achieve such miraculous achievement like U23
the environment. Vietnam team in the U23 AFC 2018 final. This is the result
Applying advanced technologies in agricultural production of an arduous practice, of striving and sacrificing. It also
such as (i) deploying recirculating aquaculture system motivates us to be more determined and act more force-
(RAS) to reduce the disposal of waste from aquaculture fully.
into the environment, in Aquatex Bentre; (ii) researching
to create resistible plant varieties aiming to reduce the Thank you and best regards,
use of chemicals and fertilizers in NSC and SSC; (iii) ap-
plication of greenhouse and high-density cultivation to im-
prove productivity, save water and reduce chemical use of
at PAN-SALADBOWL.
Applying environmentally friendly technologies and using
materials such as replacing coal by gas to reduce pollu-
tion at Bibica, utilizing agricultural waste as a fuel for pro-
duction or as a compost for soil fertilization thus reducing Chairman
waste disposal in The Group's agricultural companies. NGUYEN DUY HUNG
Complying with international practices as well as require-
ments of investors on sustainable development strategies,
environmental protection, safety and corporate social re-
sponsibility. We proactively develop and apply codes of
conduct within the Group and have a monitoring mecha-
4 THE PAN GROUP SUSTAINABILITY REPORT 5
THÔNG TIN CHUNG VỀ TẬP ĐOÀN
OVERVIEW (GRI 100)
THE PAN GROUP OVERVIEW 6
CONTEXT 42
OVERVIEW ON SUSTAINABILITY REPORT 50
6 THE PAN GROUP SUSTAINABILITY REPORT 7
THE PAN GROUP OVERVIEW COMPANY PROFILE
COMPANY PROFILE
COMPANY PROFILE Owner’s Equity (as at 31/12/2017): VND 4,164,433,331,121 (equal to 183,738,510 USD)
Company name : PAN JOINT STOCK COMPANY Head office : A1-9 VL3 Street, Vinh Loc 2 Industrial Zone, Long Hiep Ward, Ben Luc District, Long
An Province, Vietnam.
Company business name : The PAN Group Joint Stock Company
Hanoi branch : 15th Floor, ICON4 Tower, 243A De La Thanh, Dong Da District, Hanoi, Vietnam.
Abbreviation : THE PAN GROUP
Tel : (84 - 272) 3630218
Securities Symbol : PAN (listed on HOSE)
Fax : (84 - 272) 3630217
Business registration code No. 0301472704 on August 31st 2005 and revisions
Email : info@thepangroup.vn
Charter capital (as at 31/12/2017): VND 1,177,236,300,000 (equal to: 51,940,714 USD)
Website : www.thepangroup.vn
8 THE PAN GROUP SUSTAINABILITY REPORT 9
THE PAN GROUP OVERVIEW VISION, MISSION, GUIDING PRINCIPLES
VISION – MISSION –
GUIDING PRINCIPLES
VISION GUIDING PRINCIPLES
A pioneering agriculture and food Group offer- • We appreciate that a world-class agricul-
ing trusted products and innovative solutions ture and food product company increases
within an integrated value chain from Vietnam, Vietnam’s and the region’s food security.
for the world – Farm, Food, Family. • We appreciate that agriculture – including
aquaculture – lies at the core of our coun-
try’s economy, traditions and the rhythm
of daily life.
• We strive constantly to raise the bar in the
quality and value of our offerings.
• We believe that improving the quality of
farming inputs improves farmers’ liveli-
hoods.
• We promote business practices that are
tied to the heart of Vietnam’s sustainabil-
ity.
• We offer a fair, professional and inspiring
MISSION
working environment, offering opportuni-
ties that benefit our people and their fam-
With a passion to nurture the world, we set to pro-
ilies.
vide people with food security, food safety and nutri-
• We seek sustainable and profitable growth,
tion; creating sustainable values on behalf of farm-
maximizing value for all key stakeholders.
ers, families and society.
10 THE PAN GROUP SUSTAINABILITY REPORT 11
THE PAN GROUP OVERVIEW TOTAL ASSET, OWNER'S EQUITY AND REVENU
TOTAL ASSET, Financial results
OWNER'S EQUITY Caption Consolidated Parent Company PAN Food PAN Farm
AND REVENU Total assets 5,982 2,213 3,551 2,393
Owner equity 2,716 2,195 1,347 1,464
Featured indicators: Total revenue 4,075 - 2,555 1,521
Profit before tax 544 -25 322 246
Net profit margin, ROE and ROA
Profit margin 2013-2017
Profit after tax 503 -22 301 222
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2013 2014 2015 2016 2017
Net profit margin ROE ROA
Profit
Profit over years (VND billion)
600
%
121
544
500 R: 503
CAG
r tax
400 fit afte 385
pro 362 372
Net 315
336
300 257
215
183
200 160
100
100
42
21
0
-2
2013 2014 2015 2016 2017
Net profit before tax Net profit to Pan' shareholders
Net profit after tax
12 THE PAN GROUP SUSTAINABILITY REPORT 13
THE PAN GROUP OVERVIEW TOTAL ASSET, OWNER'S QUY
EQUITY
MÔ AND REVENU
TÀI SẢN VỐN
14
14 THE PAN GROUP SUSTAINABILITY
SUSTAINABILITY REPORT15
REPORT 15
THE PAN GROUP OVERVIEW TOTAL ASSET, OWNER'S EQUITY AND REVENU
Revenue Structure
0% 3%
Agriculture Agriculture
Food Food
2016 Others 2017 Others
63% 37% 49% 48%
Profit before tax structure
Agriculture
Food
Others
43% 57%
16
16 THE PAN GROUP SUSTAINABILITY REPORT 17
THÔNG
THE PANTIN
OVERVIEW CHUNG
GROUP
ON VỀ TẬP ĐOÀNREPORT
SUSTAINABILITY
OVERVIEW MILESTONES
MILESTONES 2015 2016 2017
Increased charter capital to approximately Transferred 80% equity interest of The Pan Increase the ownership at Bibica to
VND 1,009 billion, completed VND 753 billion Group in the two 100% owned subsidiaries, 50.07%, officially put Bibica into a sub-
private offering, increasing the company’s PAN Services Hanoi and PAN Services HCM sidiary of PAN Food.
market capital to approximately USD 160 City to Nihon Housing Company Limited (Ja-
million. pan). PAN Farm successfully mobilize VND
1998 2006 2008 2010 2013
400 billion from IFC and Daiwa.
Completed the investment to hold 75% of Established PAN-SALADBOWL JSC. and
Purchased 80% of PAN Trading JSC. Increased charter Increased charter capital to VND 200.5 outstanding shares of National Seed Compa- PAN Farm JSC. Expanded the FARM area Open PFM factory, start launching its
Established PAN Services Ha was established with capital from VND 70 billion. ny (HOSE: NSC). by investing in growing high-quality vegeta- products.
with charter Noi, enhancing the 80% ownership by billion to VND 115.5 bles and flowers, successfully exported to
capital of VND position of the com- PAN. PAN Trading billion Acquired Aquatex Bentre (HOSE: ABT) PAN Food completed the acquisition of Japanese market. Increase the ownership at 584 Nha
250 million. pany in services by became the licensed as a subsidiary with 54.6% ownership; 42.3% of Bien Hoa Confectionery Corporation Trang Seaproduct JSC. to 31,86%.
consistent use of the distributor of Nilfisk Delisted from Hanoi as a result, ABT became PAN’s subsid- (BIBICA)’s charter capital (HOSE: BBC) and PAN Food completed the acquisition of
Pan Pacific brand in Vietnam. Stock Exchange to iary. 75.6% of Long An Food Processing Export 22.4% of 584 Nha Trang Seaproduct JSC. Own 24.8% Sao Ta Foods JSC. (FMC).
countrywide. Purchase the re- be listed on Ho Chi JSC. (HOSE: LAF).
maining 20% of PAN Minh Stock Exchange Successfully divested from PAN Trading Changed ownership rate of foreign inves-
Increased charter Services Ha Noi, in- (HOSE) with ticker and Agifish JSC. Renamed into The PAN Group (instead of tors up to 100% charter capital.
capital from VND 20 creasing PAN’s own- PAN PAN Pacific Corp) and changed the brand
billion to VND 32 bil- ership at Pan Ser- Achieved “Asia’s 200 Best Under a Bil- identity.
lion. vices Hanoi to 100%. lion Award” by Forbes Asia and “Top 100
Vietnam Gold Star Award in 2013”.
Listed on Ha Noi
Stock Exchange with
ticker PAN.
2005 2007 2009 2012 2014
Transformed entity Increased Established PAN Completed the acquisition of 2.6 Purchased 3,391,757 shares, equivalent to 23.03%, of Long An Food Processing Export JSC. (HOSE: LAF); as
into joint stock com- charter capital Services Ho Chi million shares, equivalent to 20.2%, a result, LAF became an affiliate of PAN.
pany with charter cap- from VND 32 Minh Ltd. — 100% of Agifish JSC’s charter capital Acquired 53.2% of National Seed Corporation (HOSE: NSC); as a result, NSC became PAN’s subsidiary.
ital of VND 6.2 billion. billion to VND owned by PAN. (HOSE:AGF); as a result, AGF became Increase charter capital to VND 605 billion.
70 billion. an affiliate of PAN. Established PAN Food Joint Stock Company with charter capital of VND 100 billion.
18 THE PAN GROUP SUSTAINABILITY REPORT 191
THE PAN GROUP OVERVIEW CORE BUSINESS, DISTRIBUTION, LOCATION, AND CHANNELS
CORE BUSINESS, DISTRIBU-
TION, LOCATIONS,
AND CHANNELS
The PAN Group operates on a holding model comprising parent company and its subsidiaries Main agricultural products
and associates,focusing on agriculture and food sector.
MAIN PRODUCTS AND SERVICES Rice conventional varieties and hybrid varieties from NSC and SSC are se-
lected and hybridize with outstanding characteristics such as good taste
Japanese after cooked, soft rice, long and with grain and high yield, meeting the
chysanthemums high quality demand of domestic as well as exported markets. NSC rice
Fresh flowers by
PAN-SALADBOWL Japanese varieties are officially certified, following are outstanding products con-
Carnation tributing to the NSC and SSC brand names:
Rice seeds
Crop seeds Corn seeds
Agricultural
products
Vegetable seeds
Garlia Melon
Agricultural
products
Packaged Rice
Pangasius
Clams
Exported fishery
product
Shrimp
Cashew nuts
Cashew and nuts
Cashew nuts
Foods
584 Nha Trang
Fish sauces Fish Sauces
Confectionary from
PAN Food
Confectionary
Confectionary from
Bibica
20 THE PAN GROUP SUSTAINABILITY REPORT 21THE PAN GROUP OVERVIEW CORE BUSINESS, DISTRIBUTION, LOCATION, AND CHANNELS
1.1 CROP SEEDS
Rice seeds
Conventional varieties:
- RVT - High conventional rice - A product of NSC.
- T10 Aromatic rice variety - A product of NSC.
- Thien uu 8 - – A product of NSC.
- Tran Chau Huong - – A product of NSC.
- VS1- – A product of NSC.
- Dai Thom 8 – A product of NSC
- Kim cương 111 – A product of NSC
Hybrid rice vatieties: Hybrid rice varieties from NSC and SSC
have strong growth ability, pets and diseases tolerance and
are widely adapted with harsh cultivation conditions. Hybrid
rice varieties from NSC and SSC always possess high quality
and had been certified industry standards.
- Some hybrid rice varieties: TH3-4, ThuyHuong (NSC); Bac
Uu, 64, Bac Uu 903, Nhi Uu 63, Nhi Uu 838, PAC 807(SSC).
Corn seeds
NSC and SSC corn seed lines focus on the research and
selection of glutinous corn varieties that serve the needs
of fresh consumption of the domestic market. At present,
NSC and SSC’s glutinous corn varieties are dominating
the market. NSC and SSC’s glutinous corn products are
preferred by the market because of its waxy, sweetness,
corn grain, high productivity and wide adaptability with
many ecological zones. Oustanding corn varrieties:
- Purple glutinous corn HN66 - – A product of NSC
- Hybrid glutinous corn HN88 - – A product of NSC.
- Hybrid glutinous corn HN68 - – A product of NSC.
- Single hybrid glutinous corn MX 10 – A product of SSC
- Hybrid glutinous corn MX6 - A product of SSC
- Hybrid corn CX247 super (SRC323) – A product of NSC
- Hybrid corn SSC577 (SRC315)
Vegetable and fruit seeds
There are several vegetable and fruit seeds products from
NSC and SSC as their strategy is to focus on food crop seeds.
- Water melon: WAM 14123; WAM 14127; No.60
However,their products are well received by consumers
- Hybrid bitter melon F1: Big 6131
and maintained in the market for many years. Specifically,
recently NSC has successfully chosen a number of melon
1.2. Fresh flowers from PAN-SALADBOWL
varieties to diversify the list of Vietnamese vegetables and
At present, PAN-SALADBOWL JSC is mainly growing two main kinds of flowers: chrysanthemum and carnation, which
fruits.
are completely exported to Japan. The flowers are beautiful in color and durable in which they can bloom for up to 20
- Garlia Melon – A product of NSC
days in the best environmental conditions.
- Heat – tolerant cucumber Sakura – A product of NSC
- Chrysanthemum: About 20 kinds of daisies such as Japanese Alts, Kindly, Silvia, Celebrate, Olive, Lenior, Matissie,
- Red Pumpkin - A product of SSC: Pum1664; Pum1628m;
Colonge, Becky, Dante, etc.
Pum1631
- Carnation: About 10 kinds of carnations such as Sei Speide, Burning, etc.
- Hybrid gourd F1: Bog 16
22 THE PAN GROUP SUSTAINABILITY REPORT 232
THE PAN GROUP OVERVIEW CORE BUSINESS, DISTRIBUTION, LOCATION, AND CHANNELS
Main products in Food sector
2.1. Products of PAN Food
Probiotics gummy HURO: This is the first gummy candy contains HU58 probiotics patented from UK in Vietnam market
and with delicious taste from tropical fruits, strengthening the digestive system and immune system of Vietnamese
children.
BON AMI Cookies: Inspired by the traditional baking method combined with the premium butter ingredient, PAN Food
focused on researching to produce a product that are distinctive in flavor and packaging. With 4 different flavors:
traditional avocado, sweet grape, sunflower, and brownie taste, BON AMI Cookies bring many choices and experiences
for consumers.
ROSIO milk cream sponge cake: inspired by the milk cream 100% made of fresh milk, Rosio is a soft and tasty custard
cake; the cake base preserves high moisture, and is made from natural ingredients without containing any synthetic
colorant. There are four lines of Rosio made of natural ingredients:
- Japanese matcha: matcha is a great raw material supporting weight loss, anti-aging. In addition, Thiamine in green tea
is proven to relieve stress.
- Peruvian Chia Seed: is a mint family herb supplying energy and nutrition for all day long. Furthermore, Chia Peru has a
potential effect on beauty care, losing weight and cardiovascular protection.
- Australian cheese: is an alternative nutrition source substituting nutrition from meat. Australian cheese contains
various vitamins, calcium and natural lipid which prevent high blood pressure, cholesterol and neutralize acid.
- Red Velvet: with a distinctive bright red hue, the cake won the hearts of many people not only because of the taste, but
also because of its adorable American style name.
FUNNUTZ cashew nut: Funnutz cashew kernels are selected and carefully filtered before being put into production in
a closed process with the technology of non-fried drying and no preservatives during processing, PAN Food committed
to bring high quality and rich in nutritional value products to customers. Flavors of cashew kernels available include
wasabi, dried salted and non-salted.
BAN MAI Rice: Ban Mai rice is grown from certified rice seeds, and is grown in strictly chose cultivated areas. PAN Food
focuses on modern and closed production line with strict quality control process. The company committed to providing
100% clean and traceable products, without the use of odorants and bleach, which meet safety criteria for the health of
consumers.
24 THE PAN GROUP SUSTAINABILITY REPORT 25THE PAN GROUP OVERVIEW CORE BUSINESS, DISTRIBUTION, LOCATION, AND CHANNELS
2.2. PRODUCTS OF BIBICA Processed cashew nuts: Roasted cashew nuts
Sponge cake: Includes 3 brands: Hura Deli, Hura Swissroll with flavors including: Salt, honey, garlic, pepper,
and Hura Layercake with butter, cereal, coconut, coconut and wasabi. The products are distributed in
strawberry and orange flavors. These are products in domestic markets and exported to many large and
high demand in the market. picky international markets.
Biscuits and cookies: This product line includes 4 brands: Varieties of exported cashews includes: W450,
Choco Chips, Clown, Creamy and Jamy with a variety of W320, W240, DW, SW, LBW, WS, LP; Packed in 50lb
core flavors like coconut, grapes, orange, cashew nuts, bags, each package is either placed in a cardboard
strawberry and are packed in attractive package. box or to customer’s specifications.
Pie cakes: Include Orienko Mike cake and Lotte Pie, with
a wide range of flavors and packages, suiting with every 2.4. EXPORTED FISHERY PRODUCTS OF AQUATEX
customer’s demand. BEN TRE
Bread: The two product lines including O’live an Lobaka Pangasisus: Freshwater fish from the Mekong
are highly appreciate on quality, and eye-catching Delta, Vietnam with consistent supply all year round
packaging. Bibica bread, a product for Vietnamese’s and was certificated with G.L.O.B.A.L G.A.P and ASC.
breakfast. Packaging: Frozen using the IQF method in small
Chocolate: with the brand name of Choco Bella, Bibica packages weighing 1kg, 5kg or 10 kg, depending
provides various chocolate products to their customers. customer’s demand.
Confectionery products: Include hard candies (Michoco, Pangasius was processed into many different
products in accordance with customer’s demand
such as:
- Frozen Pangasius Headless Gutted Fin Off, Tail Off
- Frozen Pangasius Hypopthalmus Headless Gutted
Steak
- Frozen Pangasius Hypopthalmus Fillet Untrimmed
Frozen Pangasius Hypopthalmus Fillet Welltrimmed
Calytos, Four seasons, Volcano, Welly, etc); Soft candies
- Frozen Pangasius Fillet Welltrimmed Portion Cut
(Sumica, Cheery, etc), and Jelly candies (Zoo, Tropy).
- Frozen Pangasius Fillet Welltrimmed Portion
The quality, diversity and reasonable price of all candy
Breaded
products of Bibica are highly evaluated by the customers.
- Frozen Pangasius Fillet Cube Skewer with
Mixed products and products for special occasions:
Vegetable
With popular brands like Goody, Lac Viet, Wendy, Happy,
- Frozen Pangasius Fillet Welltrimmed Portion
Michoco, Phat Tai, etc, products of Bibica always attract
Breaded
many loyal customers to buy as presents in special
Clams: Premium materials are carefully selected
occasions.
from clean material regions in Vietnam. Products
Moon cakes: With a well-known brand, long experience in
from clams are well processed and of high value
the market and diverse choice of nutritious and naturally
added such as steamed clam, clam steamed with
derived product with a wide variety of new flavors and
garlic, clams steamed with yum shrimp. The supply
packaging options, Bibica increasingly consolidated its
chain of clams is awarded with MSC certificate.
position as the top leader of the moon cake market.
Packaging: Frozen using vaccum packages weighing
Nutritious products of Bibica: Include products for people
500 grams or 1 kg
with diabetes, pregnant women and nutrition products
- Frozen Fully Cooked White Clam Whole Shell
for infant babies. (Outstanding product are Quasure
- Frozen Fully Cooked Brown Clam Whole Shell
and Netsure nutritious cereal, Growthsure cookie and
Mumsure nutritious cookie).
And many other product lines.
2.3. PRODUCTS FROM LONG AN FOOD PROCESSING
EXPORT COMPANY
26 THE PAN GROUP SUSTAINABILITY REPORT 27THE PAN GROUP OVERVIEW CORE BUSINESS, DISTRIBUTION, LOCATION, AND CHANNELS
- Frozen Fully Cooked White Clam Whole Shell in Garlic Bac are different in the lower level of salinity and the
Butter more fragrant taste.
- Frozen Fully Cooked White Clam Whole Shell in Tomyum
- Frozen Fully Cooked White Clam Half Shell 2.6.PRODUCTS OF SAO TA FOODS JOINT STOCK
- Frozen Fully Cooked White Clam Meat COMPANY
- Frozen Fully Cooked Yellow Clam Meat Products of Sao Ta are mainly exported to Japanese,
American, Canadian and Korean market. Therefore,
2.5. FISH SAUSE FROM 584 NHA TRANG Sao Ta’s product meets strict requirements and high
584 Nha Trang fish sauce is made from anchovies catch standard from importing markets. There are two main
from Nha Trang sea. Raw materials are carefully selected product lines including processed shrimp and processed
to ensure the flavor of the essence of fish sauce. With vegetable.
the traditional method of fish sauce production process, - Sao Ta’s processed shrimp products are various
584 Nha Trang always follow a specific formula to ensure including: PD Shrimp (Peeled & Deveined Tail Off), PDTO
the high quality of the product with good and rich taste; shrimp (Peeled & Deveined without Tail Off), IQF shrimp
yellow honey color. 584 Nha Trang fish sauce is not only (Individually Quick Frozen), Japanese style processed
delicious but also ensure the absolute safety food hygiene, shrimp such as Nobashi, Shushi… The Tempura shrimps
protecting the health of consumers. use the latest Tempura starch technology to ripen,
Tempura shrimps are not hardened after cooling.
Major product lines of 584 Nha Trang fish sauce: - Processed Vegetable: Original Kakiage includes fried
- Traditional product line branded 584 Nha Trang with a vegetables and fried vegetables which is widely accepted
variety of protein choices. by customers. With the esoteric fomula the processed
- Huong Bien fish sauce is distilled from the essence of vegetable attracts a majority of consumers including the
anchovy in Nha Trang sea. most fastidious consumer.
- The fish sauce line supplemented with iron nutrition for
the purpose of preventing fighting iron deficiency anemia,
which is common among women and children.
- The less salty fish sauce lines namely Vi Ngon and Bien
28 THE PAN GROUP SUSTAINABILITY REPORT 29trung tâm nghiên cứu và nhà máy chế biến tại Hà Nội Phước, Vũng Tàu và một đơn vị thành viên tại thành
và Hưng Yên. Cần Thơ.
Công ty Cổ phần PAN-SALADBOWL: Ðịa bàn hoạt Công ty Cổ phần Bibica: 3 nhà máy sản xuất tại th
THE PAN GROUP OVERVIEW động chủ yếu ở Lâm Ðồng. Công ty có 3 khu trang trại BUSINESS phố BiênAREAS AND DISTRIBUTION CHANNEL
Hòa, Ðồng Nai; Bình Dương và KCN Sài Ð
tại huyện Lâm Hà, Ðơn Dương và Lạc Dương. Hà Nội
BUSINESS AREAS AND DISTRIBUTION CHANNELS Công ty Cổ phần Thủy sản 584 Nha Trang: 02
nhánh và tổ bán hàng tại Hà Nội, thành phố Hồ Chí M
DISTRIBUTION CHANNELS và 03 đơn vị sản xuất tại tỉnh Ninh Thuận, Bình Th
The Company’s products are widely distributed in both national and international markets, thanks to the huge distribution
và Khánh Hòa.
networks of over 150 distributors to 132,000 selling points in 63 provinces. Products like rice, aquaproducts, flowers,
cashews and seeds are also spread across many important global markets such as China, Japan, Europe, America,
Canada, Australia, Hong Kong, Middle East, etc.
The company has nation-wide business areas. Parent company, The PAN Group, operates through the Head Office at Sản phẩm- NSC:
của1,500
Tập distributors
đoàn được in most
phânprovinces.
phối rộngExported to China,
rãi trên Laos, Thailand,
thị trường trong Cambodia, Myanmar.
nước và quốc tế nhờ mạng lưới phân
Long An province and a Hanoi branch office. PAN’s subsidiaries and affiliates also work on a national scale, specifically:
- PAN-SALADBOWL:
rộng khắp gồm hơn 150 nhà Japan.
phân phối tới 132.000 điểm bán trên 63 tỉnh thành trong cả nước. Các mặt hàng
gạo, thủy sản, hoa tươi, điều và hạt cũng vươn tới nhiều thị trường quốc tế quan trọng như Trung Quốc, Nhật B
Châu Âu, Mỹ, Canada, Úc, Hong Kong, Trung Ðông,…
Agricultural companies: Food processing companies:
PAN Farm has a head office in Hanoi and 2 subsidiaries, PAN Food has a Headquarter in Long An province and
National Seed Company (NSC) and PAN-SALADBOWL various subsidiaries and affiliates located as below:
JSC. - Ben Tre Aquaproduct Import and Export JSC. (Aquatex
- National Seed Company (Vinaseed – NSC): The Company Bentre – ABT): has a nurturing farm at Chau Thanh, 4
has a Hanoi Head Office, 1 representative office in Laos, 1 fish farms at Chau Thanh and Giong Trom, 2 workshops
representative office in Tay Ninh; 6 branches at Ha Nam, inside company’s Headquarter at Chau Thanh and Ben
Thanh Hoa, Thai Binh, Nghe An, Tay Nguyen, 1 branch Tre.
trading agricultural products; 4 consolidated subsidiaries - Long An Food Processing Export JSC. (Lafooco – LAF):
in Ha Dong (Ha Noi), Ha Nam, Quang Nam and HCM City; Headquarter at Long An province.
2 research centers and processing factories in Ha Noi - Bibica JSC.: Headquarter at Tan Binh District, Hochiminh
and Hung Yen. city; 3 factories at Bien Hoa, Dong Nai; Binh Duong and
- PAN-SALADBOWL JSC.: Business areas mainly at Lam Sai Dong Industrial Zone, Ha Noi.
Dong. The Company has 3 farms at Lam Ha, Don Duong - C584 Nha Trang Seaproduct JSC.: 2 branches and
and Lac Duong. selling groups in Hanoi, HCM City and 3 production units
in Ninh Thuan, Binh Thuan and Khanh Hoa.
- Sao Ta Foods JSC (Fimex VN – FMC): The main business
lines of the company are frozen shrimp and exported
agricultural products operating mainly in Soc Trang 117 nhà phân phối, gần 100.000 điểm bán 1500 đại lý tại hầu hết các tỉnh thành.
province, including Sao Ta Seafood factory and An San
hàng trên khắp cả nước Xuất khẩu sang Trung Quốc, Lào,
Thái Lan, Campuchia, Myanmar
Food factory.
thị trường chính: Nhật, Mỹ, EU, Canada,
Úc, Singapore, Hàn Quốc. Ngoài ra ABT
cũng có khách hàng ở thị trường Nam Mỹ, Nhật Bản.
Trung Ðông và Bắc Phi
Mỹ, Úc, Hà Lan, Hongkong, Anh, Ðức, 3000 điểm bán, phân phối toàn quốc.
Canada, Trung Quốc.
- Bibica: 117 distributors, nearly 100,000 selling points nation-wide.
- ABT: primary market: Japan, America, EU, Canada, Australia, Singapore, Korea. ABT also has customers from South
America, Middle East and North Africa.
- LAF: America, Australia, Holland, Japan, Hong Kong, England, Germany, Canada, China.
- 584 Nha Trang: 3,000 selling points over the country.
- FMC: Japan, US, EU.
30 THE PAN GROUP SUSTAINABILITY REPORT 31THE PAN GROUP OVERVIEW PRINCIPLES AND STANDARDS OF THE GROUP
PRINCIPLES AND STANDARDS
OF THE GROUP
As a leading company in the field of agriculture and food in the region, The PAN Group established our own standards
in line with the international standards and practices.
The PAN Group publishes information and makes reports according to Vietnam regulations (Circulars 155/2015/TT-
BTC), reporting standards of organizations such as GRI (GRI Standard); Annual monitoring report of the international
financial institution (AMR).
Social-Environment issues are implemented according to: IFC Performance Standards on Environmental and Social
Sustainability; PAN Production Principles;
At member companies, the application of international standards is important to meet the comprehensive require-
ments of the customers. The application of sustainable development standards is also encouraged and monitored to
“PAN Production Principles” was established by The PAN Group based on IFC Performance Standards on Environ-
ensure the consistency with the Group’s orientation.
mental and Social Sustainability, HACCP principles and the guide to food safety assessment by the Global Food Safety
Initiative (GFSi). These principles were approved by the Chairman and is applied gradually to all member companies
within the Group and to the supply chain of member companies as appropriate. The detail content of these principles
can be found in our website at:
http://thepangroup.vn/Upload/Category/CSR/Bo%20nguyen%20tac%20SX%20PAN.pdf
“PAN Internal Guidelines” is code of conduct for internal employees, which is required by the company and informed to
all employees at the beginning after the recruitment as well as at the annual training.
http://thepangroup.vn/phat-trien-ben-vung/quy-tac-ung-xu-coc.htm
All of the above documents are available on the website and official documents at our offices in both English and Viet-
namese languages in order to show our strong commitment and willingness to receive external feedback and monitor-
ing.
32 THE PAN GROUP SUSTAINABILITY REPORT 33THE PAN GROUP OVERVIEW SUBSIDARIES & AFFILIATES
SUBSIDIARIES
& AFFILIATES
The PAN Group operates in Agriculture and Food industries via parent company and its subsidiaries and affiliates on
the basis of completed M&A deals.
Processing, manufactur-
Summary information of PAN’s subsidiaries and affiliates:
Long An Food 81B Avenue 62, Tan ing, trading, import and ex-
3 Processing Ex- An city, Long An port, providing services in 147,280,190,000 80.5%
port JSC (LAF) Province the agricultural products,
PAN’s ownership
aquatic products, food.
No. Company Address Industry Charter Capital (direct or indirect
via subsidiaries)
Production and sale of
Farm Companies (PAN Farm)
products: sugar, confec-
15th Floor, ICON4 tionery, malt, wine (alco-
Tower, 243A De La holic beverages), nutri-
1 PAN Farm JSC. Agriculture 1,000,000,000,000 81.92% 443 Ly Thuong Kiet,
Thanh, Dong Da tional powder, milk and
4 Bibica JSC. 8th Ward, Tan Binh 154,207,820,000 50.07%
district, Hanoi. dairy products, soy milk,
District, HCM City
soft drinks, powdered soft
drinks (not produced at the
Research, produce, trade,
company’s headquarter)
export and import agri-
No 1 Luong Dinh and real estate business.
cultural and forestry plant
National Seed Cua Street, Phuong
2 seeds and to produce, 152,950,000,000 75%
Company (NSC) Mai Ward, Dong Da
trade, export and import
District, Hanoi 584 Le Hong Phong, Quality control, processing
agricultural products and 584 Nha Trang
5 Nha Trang, Khanh and preservation of fishery 54,019,090,000 31.86%
materials. Seaproduct JSC.
Hoa. and aquaculture products.
PAN-SALADBOWL Tan Lap, Tan Van, Manufacture and trade
3 28.189.052.240 63,8% Manufacturing, processing
JSC. Lam Ha, Lam Dong vegetables and flowers. A1-9 VL3 Street,
and trading of confection-
Vinh Loc 2 Indus-
PAN Food Man- ery, alcoholic beverages,
trial Zone, Long
Food Companies (PAN Food) 6 ufacturing JSC. soy milk, beverages, meat 275,000,000,000 99.95%
Hiep Ward, Ben Luc
(PFM) products, seafood, other
District, Long An
A1/1-9 VL3 Street, agricultural products and
Province
Vinh Loc 2 Indus- real estate business.
trial Zone, Long Manufacture and distribute
1 PAN Food JSC 1.000.000.000.000 99,99%
Hiep Ward, Ben Luc food.
District, Long An Processing and preserving
Province aquatic products, import-
ing machinery, equipment
Km2132, High Way
and materials for process-
Ben Tre Aqua- Tan Thach Vil- Culture, process and ex- Sao Ta Foods 1A, Ward 2, Soc
7 ing industry; aquaculture; 390,000,000,000 24.8%
product Import lage, Chau Thanh port aquatic products, pro- JSC. (FMC) Trang Town, Soc
2 141,072,070,000 72.8% sale of food, processing
Trang Province
and Export JSC. District, Ben Tre cess feeds for aquaculture, agricultural products; real
(ABT) Province livestock and poultry. estate business; and other
activities.
34 THE PAN GROUP SUSTAINABILITY REPORT 35THE PAN GROUP OVERVIEW SUPPLY CHAIN FROM FARM TO TABLE
SUPPLY CHAIN
FROM FARM TO TABLE
Based on a solid financial foundation and management experiences, together with an experienced and dedicated pro-
fessionals team, The PAN Group has built and comprehensively controlled the supply chain, towards sustainability- the
key to creating superior market dominance.
- Actively build the sourcing area for the Group. The PAN
Group has our own vast farming area which can be
controlled to ensure clean, safe and traceable materials. Our professional and nationwide distribution
- Farms system meet the standards of good practice/pro- - Ensure food safety according to HACCP, BRC, systerm includes more than 132,000 outlets in
duction such as VietGap, Global Gap, and ASC). IFS, ISO22000 standards. major supermarkets to convenience stores
- Establish a close relationship with suppliers to ensure a - Apply modern production technologies and across the country and exported to over 20
stable source of materials and apply modern technologies equipment to improve productivity and increase countries around the world including high-end
to keep the supply sources. the value of products. markets such as USA, Japan and EU.
SUPPLY CHAIN AND FARMING SYSTEM PROCESSING, PACKING AND DISTRIBUTION SYSTEM
EXPORTING FACTORIES SYSTEM
36 THE PAN GROUP SUSTAINABILITY REPORT 37THE PAN GROUP OVERVIEW THE AFFILIATE INDUSTRY ASSOCIATIONS
THE AFFILIATE INDUSTRY In 2017, The PAN Group and a number of ministries, agencies and typical enterprises attended the 2nd Vietnam Private
Sector Forum at the invitation of the General Secretary of the forum. At the meeting, The PAN Group has raised a lot
of ideas in the agricultural sector base on the target to reorganize the agricultural production according to the market
ASSOCIATIONS demand.
The PAN Group and member companies are focused and proactive in participating in business associations and industry
associations. The Group’s viewpoint is that associations have always played an important role, especially in creating an
environment and mechanism that can link closely enterprises in the same area and to ensure the efficiency of common
interests of every sectors while also ensuring the interest of enterprises and the country.
At the Group level
The PAN Group is a member of the Food Safety Working Group in Vietnam since 2016 and has actively participated in this
group’s activities. In 2017, PAN and the Food and Agriculture Organization have successfully organized the 6th FSWG
meeting with the theme “Better management of antibiotic usage for safer food production in livestock and aquaculture”.
In 2017, The PAN Group officially joined the Corporate Sustainability and Reporting for Competitive Business (CSRCB)
program of the Global Reporting Initiative (GRI).
The Group plans to appoint person in charge to attend GRI training in the first quarter of 2018. The course will help PAN
review and revise the Sustainability Report based on the guidelines for ensuring the quality of reporting as well as to
maximize the benefits of reporting under this standard.
38 THE PAN GROUP SUSTAINABILITY REPORT 39THE PAN GROUP OVERVIEW THE AFFILIATE INDUSTRY ASSOCIATIONS
Lafooco is a member of the Vietnam Cashew Association ((Vinacas), the American Food Industries Association (AFI),
the Combined Edible Nut Trade Association (CENTA), Vietnam-Laos-Cambodia Association for Economic Cooperation
SSC is a member of the Vietnam Seed Trade Association, the Vietnam Plant Seed Association, the Asia& Pacific Seed
Development, Vietnam Food Safety Association.
Association (APSA) and is in the partnership with many research institutes, universities, organizations and scientists in
the country and oversea.
ABT is a member of the Vietnam Association of Seafood Exporters and Producers (VASEP), a member of Vietnam Pan-
gasius Association and Vietnam Chamber of Commerce and Industry.
PAN Saladbowl is a member of Science and Technology Association of Lam Dong Province
NSC is a member of the Asia& Pacific Seed Association (APSA), Vietnam-Laos-Cambodia Association for Economic
Bibica is a member of Business Association of Ho Chi Minh City, Saigon Entrepreneurs Association, Vietnam Quality Cooperation Development. General Assembly of Agriculture and Rural Development and the Vietnam Seed Trade As-
Association of Ho Chi Minh City, Vietnam Association for Numbering and Barcoding, Brands Vietnam, Vietnam Cham- sociation (VUSTA) .
ber of Commerce and Industry (VCCI), Business Association of High Quality Vietnamese Products, Vietnam Exporters
Association (VEXA)
40 THE PAN GROUP SUSTAINABILITY REPORT 41CONTEXT ECONOMIC CONTEXT
ECONOMIC ECONOMIC GROWTH
Gross Domestic Product (GDP) Growth Rate
CONTEXT
Unit: % Compared with the same period of 2016
2017 witnessed a number of momentous economic, social steady and sustainable growth. In this context, the sec-
and environmental events: The world economy thrived in tors of agriculture and foods are paid special attention by
almost all the regions, and nations after years of crisis. many investors, organizations and the entire society due
Environmental issues, thanks to the related parties’ ef- to the necessity of the market demand and long-term sta-
forts, have gained certain positive achievements besides bility. In parallel with the favors of natural resources and
the difficulties continually faced by the world, such as envi- conditions, Vietnam possesses all the necessary factors to
ronmental pollution, climate change, exhausted resourc- develop these 2 sectors. However, if failing to have a com-
es... The conflicts in the world are still occurring with the prehensive assessment on ever-changing influential fac- 5,008 thousand 53.5 million VND/
hidden potential violence, in addition to the long-lasting tors, the participating organization will run higher risks. billion VND capita/ year
unsolved pressing issues over the past years, i.e. global- Environment, climate change, human awareness, interna- The achieved economic Average GDP/ capita
ization, poverty, livelihood, equality, etc. The world has tional norms, and technical barriers… will be the issues scale Increase of 3.7 million VND
been increasingly aware and concerned about the existing we need to make a thorough assessment to make sound
and potential uncertainties in the long run and has made policy and action plan for certain period of time. The PAN
efforts to address them, yet this problem has never been Group is not standing outside of this trend, thereby, the
GROWTH RATE BY SECTOR
simple to achieve the expected outcomes. timely analysis and assessments will be the key factors to
* Compared with the same period of 2016
Within the scope of Vietnam, we are in the economic tran- making appropriate adjustments, aimed at achieving the
sition phase, shifting from hot and large-scale growth to set objectives.
Economic context
2017 is closed with Vietnam economic success in terms of growth. Gross domestic product (GDP) growth rate reached
6.81%, higher than the target of 6.7%. GDP growth rate of 6.81% is also the highest growth rate within the last decade.
The growth record is attributed to the vigorous resurgence of the economy in the second half of the year. The growth
rate of over 7% in Quarter III and Quarter IV is a jump, making the ambitious growth rate at 6.7% which is seemingly
“impossible” to become a new “mark” of Vietnam economy, surpassing all the expectation of the international organi-
Agriculture, Forestry, Industry - Service Product tax,
zations, economic experts and the Government of Vietnam.
Aquaculture Construction excluding product
Highlight some impressive economic figures in 2017
subsidy
VIETNAM GDP STRUCTURE BY CONTRIBUTION BY SECTOR
TOTAL INVESTMENT CAPITAL OF THE ENTIRE SOCIETY
SECTOR IN 2017 TO VIETNAM’S GDP IN 2017
TỔNG VỐN Unit:
ĐẦU TƯThousand billion
NGOÀI XÃ HỘIVND
(Nghìn tỷ ồng)
Agriculture, Forestry and Aquacuture
396 Khu vực nhà
Public nước
Sector
Industry – Construction
595
1.667
1.667 Thousand
Services Nghìn Khu vực ngoài nhà
Non-Public nước
Sector
billion VND
tỷ ồng
Product tax, excluding product subsidy FDI
Khu Sector
vực FDI
676
42 THE PAN GROUP SUSTAINABILITY REPORT 43CONTEXT ECONOMIC CONTEXT
THE MOST MAJOR INVESTORS THE MOST CAPITAL INVESTMENT FOREIGN DIRECT INVESTMENT (FDI)
Unit: million USD ATTRACTING Disbursed FDI Capital
Unit: million USD Unit: billion USD
PUBLIC BUDGET
Budget deficit estimated at VIETNAM’S CPI IN 2017
120.000 billion VND
(From January/2017 to December/2017, unit: %)
billion VND
Revenue Budget billion VND
Expenditure Budget
Unit: million USD
IMPORT AND EXPORT From January/2017 to December/2017
unit: %
Trade surplus Exports
2.67 BILLION VND 213.7 BILLION VND
Based on the foundation developed in the previous period, The PAN Group entered into 2017 with a number of advan-
tages to continuing the mission of “Establish the complete value chain” and “Creating sustainable values”. Moreover,
BILLION VND BILLION VND
the Group also identified the economic issues they had to face so as to make efforts, proactively turning difficulties into
Total Export Import turnover favorable conditions, adopting the measures to mitigate the impacts of objective factors.
- Investment resource, operation expansion and value chain merger
- Upgrading and improvement of infrastructure and equipment
- Increase in the income, welfare, working conditions for employees and community sharing activities.
The establishment of full integrated food and agricultural production model accordance with the orientation and to-
gether with the remarkable achieved successes, The PAN Group is receiving more attention of customers and partners.
These are strong motivations for PAN to go further and continue to move towards greater success.
44 THE PAN GROUP SUSTAINABILITY REPORT 45CONTEXT ENVIROMENTAL CONTEXT
ENVIROMENTAL OPPORTUNITIES
On the other hand, a good management of environmental impacts is a plus point of
CONTEXT
an organization, production and business unit. Accordingly, The PAN Group will be
evaluated as a responsible production and business organization with sustainable
development strategy if there are specific actions and completion of environmental
protection obligations. The environmental protection efforts not only bring about
the efficiency in terms of finance for the corporate but also act as one of the criteria
to be taken into account by the investors, business partner while looking for coop-
eration opportunities. Thus, good environmental protection activities bring about
The PAN Group produces and do business in the agricultural and food sector with diversified operations and extensive both internal and external benefits to any business.
coverage of many regions in Vietnam. Although this is not a sector exerting many negative impacts on the environment,
there are still certain impacts from the use of natural resources such as water, energy and emissions, etc. In the con- RISKS
text of ever-increasing concerns about the environmental issues and climate change, PAN must inevitably come up with
The environmental impacts not only directly affect the Group’s production and
appropriate action plans demonstrating the corporate responsibility for the environment.
business activities but also results in the community’s protests or petition or other
form of sanction or operation restriction by the management authority level. The
shareholders, and business partners are always concerned about environmental
Environment impacts impacts, requesting The PAN Group and its member companies to take sound
actions in line with the international standards and practices on environmental
protection. The violations and negative impacts in this sector will result in cata-
strophic consequences in the cooperation and investment, and directly affect the
Group’s production and business activities.
WATER POLLUTION
WATER USAGE PESTICIDES USAGE
SOIL POLLUTION
PROCESSING ENERGY USAGE
EXHAUSTION OF
FOSSIL FUELS
AIR POLLUTION
TRANSPORTATION WASTE
THE GLOBAL
WARMING
BIODIVERSITY
GREENHOUSE GAS FARMLAND USAGE
EMISSION
IMPACT ON THE
SURROUNDING FLORA
AND FAUNA
NOISE AND DUST
46 THE PAN GROUP BÁO CÁO PHÁT TRIỂN BỀN VỮNG 2017 46 SUSTAINABILITY REPORT 47CONTEXT SOCIAL CONTEXT
SOCIAL CONTEXT From the external aspect, the pressure from the international practices of responsible production and business is a fac-
tor pushing The PAN Group to make greater efforts to realize the ambition of becoming the leading agriculture and food
Group in the region. Not only as the legal ties and commitments, these are also the commitments and ways of building
trust among the investors and business partners in PAN’s sustainable development strategy. Apart from the commit-
ment to comply with the laws and its investors’ requirement of adopting the best policies and welfare for the employees,
Agriculture and food is one of the labor-intensive sectors, in which the majority of the laborers are unskilled and low-in-
The PAN Group and its member companies also apply the international standards of community responsibility such as
come employees. Hence, ensuring the employment and income is one of the critical and prioritized issues to maintain
BSCI, SEDEX, Fair Trade…, promoting the implementation of community responsibility and sustainable development,
the stability of human resource and production quality. The PAN Group and its member companies, besides ensuring
as well as the environmental issues, social impacts which have considerable impact on The PAN Group’s operations.
the payment of wages and welfare as required by law, adopt a number of better policies for the employees to improve
their material and spiritual life, encourage their commitment and devotion to work. All the member companies of the
Group established the employee organizations such as the Trade Union, the Communist Party, the Youth Union, the
Women’s Union, etc. All the organizations conduct regular and exciting activities with the great support from Board of HIGH WORKING PERFORMANCE
Management. OCCUPATIONAL SAFETY
Not only restricting the responsibility for the Group’s employees, The PAN Group and its member companies pay due SUPPORTING FROM CUSTOMERS AND COMMUNITY
attention and make great efforts to create positive effects for the surrounding communities, especially those affected BRAND EXPANSION
by the Group’s operation. Accordingly, the community and charity programs are indispensable events in the annual
COMPLIANCE WITH THE LAW, FACILITATE TO OPERATE
action plan, moreover, the Group creates source of stable employment, livelihood and income for the local residents,
ensuring their stable life. These are the most practical actions demonstrating The PAN Group’s responsibility for the
entire community.
LOW WORKING PERFORMANCE
Social impacts OCCUPATIONAL UNSAFETY
PERSONNEL DISTURBANCE
COMMUNITY CLAIMS, BOYCOTT
BRANDING CRISIS
INCOME
EMPLOYMENT INSURANCE LAW VIOLATION, AMERCEMENT
In the above context, the analysis and assessment of the influential factors and the development of a methodological
system aimed at overall management of environmental and social issues are necessary. Thereafter, every aspect of the
environment and society is analyzed to define the control priority to be suitable for the scale, impact level and accord-
SAFETY
AND HEALTHY LIVELIHOODS ingly, to take appropriate measures.
BENEFITS CHARITY AND
COMMUNITY PROGRAMS
Improve Identify
$
the impact
QUALIFICATION
of E&S
INFRASTRUCTURE
WORKING CONDITION WAGE AND SKILL
SOCIAL-ENVIRONMENTAL
MANAGEMENT SYSTEM
Monitor
the results Anal
impac
DIFFICULT
CIRCUMSTANCES
TRAINING COMMERCIAL Identify
TRANSACTION control measures
48 THE PAN GROUP SUSTAINABILITY REPORT 49OVERVIEW ON SUSTAINABILITY REPORT SUSTAINABILITY REPORT 2017
SUSTAINABILITY REPORT 2017
SUSTAINABILITY
REPORT
2015
The theme on “Raising the community's
awareness of sustainability
This is the first time a Sustainability Report has been
make independently. The 2015 theme targeted to part-
ners, member companies, employees and the social com-
munity. The activities that the Group strove to deploy in
2015 considered the sustainable development as one of
the issues which the stakeholders need to take into a
serious consideration and develop a fully responsive
Climate change, depletion of resources, environmental Not out of this trend, The PAN Group also clearly ex- plan.
degradation … are seriously affecting the stability of hu- pressed the viewpoint of economic growth must be in har-
man habitat. Thus, all organizations take into account mony with cultural development, environmental protec-
sustainable development strategies on all three pillars of tion, health and occupation safety. This view is reflected
the economy, society and environment. Given the current in the environmental and social activities and is addressed
context, this is the only way to sustain the achievements throughout the Group’s Sustainability Report, which is
and continue the journey of development. made annually with specific objectives and activity theme.
SUSTAINABILITY
REPORT
2016
The Theme on “Food Safety”
2016 Sustainability Report focused on the activities for
the parent company's production enhancement.
In 2013 and 2014: Sustainability Report was included in Throughout the activities in 2016 are the application of
the Annual Report, described fundamental activities and stringent requirements on the products safety, applica-
orientation for the long-term strategy in the field of agri- tion of international standards to the business operation.
culture and food. Food safety issue is not only limited within the group but
also widely communicated with the expectation of
enhancing the positive influences. The PAN Group
deployed a lot of community activities and participated
in the food safety forum in 2016.
50 THE PAN GROUP SUSTAINABILITY REPORT 51OVERVIEW ON SUSTAINABILITY REPORT PURPOSE OF THE REPORT
PURPOSE
SUSTAINABILITY
The theme on “Good Agricultural
Practices and Food Safety”
OF THE REPORT
REPORT
2017 In 2017 Sustainable development activities focused on
adopting good agricultural practice standards in PAN
farms and in the associated farmer households. In addi- With determination to pursue sustainable development build up branding of The Group to gradually integrate in to
tion, the Group promoted the revision of the quality man- and maximize benefits for all stakeholders, in recent the international market.
agement system from the corporate level to member years, The PAN Group is constantly striving to disclose ful- Therefore, following the previous years, in 2017 Sustain-
companies to give solution to improve management ly and transparently all operation information of the Group ability Report was continued to be implemented by The
system, technologies and infrastucture and tighten the including production, business, finance and non-finance PAN Group providing a whole picture of sustainable de-
food safety issue in all factories, improving the reliability according to international standards. The dissemination velopment activities of the Group and member compa-
of customers with products under The PAN Group brand- of information about positive activities to improve the en- nies. This report is prepared on the basis of the Guidelines
ing. The Group has also set a clear goad of addressing vironmental and social impact of the business is not be- for Sustainability Report issued by the State Securities
quality and food safety issues that meet the highest stan- yond this purpose. The report provides stakeholders with Commission (SSC) in cooperation with the International
dards in the world, targeting high-end markets and a broader perspective and a complete assessment of the Finance Corporation (IFC). The report content is also de-
consumers. Group’s activities. veloped in accordance with the Global Reporting Initiative
The Sustainability Report is also a driving force for The (GRI) standards.
PAN Group to better manage our operations, achieving
financial growth as well as non-financial goals, thereby
In 2018: The theme on “Application of advanced science and technology in agricultural production and food processing”
Key activities:
Not beyond the inevitable development trend of the 4.0 industrial revolution, The PAN Group will also intensify the appli-
cation of smart science and environmentally friendly production models in agricultural production and food processing
to further enhance the value of products and make profit for all parties. Target of the 2018 theme will focus on cashew
nuts, fisheries and processing value-added products.
52 THE PAN GROUP SUSTAINABILITY REPORT 53You can also read
