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Sustainable Development: Vietnam Dairy Products Joint Stock Company
Sustainable Development: Vietnam Dairy Products Joint Stock Company
Sustainable Development: Vietnam Dairy Products Joint Stock Company
DEVELOPMENT
REPORT
2013
2 3
CONTENTS
SUSTAINABLE DEVELOPMENT REPORT
2013
CHAIRWOMAN’S MESSAGE
04
CORPORATE PROFILE
06 »»Corporate history
»»Highlights on business areas, products and market
»»Scale index of Vinamilk
»»Organization structure and operation units
»»Organization chart
SUSTAINABLE DEVELOPMENT
20 CONSOLIDATION OF CORPORATE GOVERNANCE
»» Structure and members of the Board of Management
»» Sustainable development issues
»» Mechanism of receiving recommendations from stakeholders
»» Vision, Mission, Core Values - Code of Conduct
»» Titles achieved in the report period
CONTACTS
98
CHAIRWOMAN’S MESSAGE
Dear all,
During 2013, all organizations had to face many Inheriting and promoting the contents presented in
challenges and problems of the society such as the 2012 report, Sustainable Development Report 2013
economic recession, environmental pollution, will include outstanding performance through the
contaminated and intoxicated products, false contents: Responsibility to products – Environment
information from social networking sites, etc. In & Energy – Working environment – Economic
order to overcome these challenges, there is no way development and social activities.
better than that each organization should define its
development strategies and take specific actions in Together with the Annual Report 2013, we all expect that
business operations, aiming towards the objectives the Sustainable Development Report 2013 will bring
of sustainable development, and demonstrating to the shareholders, consumers, customers, partners,
responsibilities to the society. employees, and communities a comprehensive
overview on orientation and performance of Vinamilk.
In such a context, Vinamilk continued maintaining its
stable growth and development. This proves that we Many thanks to you for your confidence and being a
have had the right steps on the path of sustainable companion with Vinamilk during the last time. I believe
development. The outcome we gained is the result that with the right orientation, commitment, effort,
of closely and throughout link in strategies and and collaboration among the parties will bring steady
actions, including the orientation of the Company’s steps for all of us in the future.
leadership, the commitment and non-stopping efforts
of each employee, the credibility of shareholders on Thanks & Regards,
the Company’s development strategy, the consumer’s
trust, and the cooperation and sharing to jointly
develop from customers, suppliers and partners. On behalf of the Board of Management
CORPORATE HISTORY
1976 1978 1989 1991 1992 1994 1996 1998 2001 2003
Our Company was The Company had more Dielac Powdered Milk The “white revolution” The United Enterprises of In the expansion plan to Binh Dinh Dairy Joint Venture Can Tho sales office was Can Tho Dairy Factory was The Company was formally
founded under the name factories: Bich Chi Powder Factory came into started the development Milk Coffee Cookies and meet the market demand in Enterprise was founded as the opened in order to develop inaugurated and put into transformed into a joint stock
of Southern Coffee-Dairy Factory, Lubico Cake operation and introduced of fresh milk. The first Candies I was formally the North, the Company result of our joint venture with sales activities in the Mekong operation in the Mekong company in November 2003
Company, a subsidiary of Factory and Bien Hoa its first batch of products time we launched UHT renamed Vietnam Dairy built the Hanoi Dairy Dong Lanh Quy Nhon Joint delta provinces. Delta. and renamed as Vietnam
the Food General Coffee Factory. to the market in Vietnam. milk products and Company and came Factory. Stock Company. Ha Noi Dairy Dairy Products Joint Stock
Directorate and had two The Company was yoghurt to the Vietnam under the direct On October 7th 1994, the Factory came into operation. Co., to reflect its change in
factories in operation, market. management of the legal status.
namely Thong Nhat Dairy transferred to the Ministry sales office was opened and In May 1996, Da Nang sales
of Food Industry and the Ministry of Light Industry. responsible for sales office was opened and
Factory and Truong Tho Company was renamed
Dairy Factory. activities in the north responsible for sales
United Enterprises of Milk provinces. activities in the central
Coffee Cookies and provinces.
Candies I.
Acquired Saigon Milk Joint Stock Bought our joint venture Vinamilk was listed on In September 2007, the Tien Son Dairy Factory In September, the cow The Company started its In June 2012, Da Nang On October 21st 2013,
Company and increased share partner’s remaining equity in Hochiminh City Stock Company acquired a was inaugurated and put farm in Nghe An was strategy of investment dairy factory was opened Thong Nhat Thanh Hoa
capital of the Company to VND Binh Dinh Dairy Products Exchange (HOSE) on 19 controlling stake of 55% in into operation in Hanoi. opened. This is the most overseas by contributing and put into commercial Dairy Cow Co., Ltd. was
1,590 billion. Company Ltd (which was January 2006. Lam Son Milk Company Ltd., modern farm in Vietnam nearly USD10 million operation. granted business
then known as Binh Dinh In June, An Khang Clinic was located in Le Mon Industrial with its designed size of (equivalent to 19.2% of registration certificate by
Dairy Factory) and opened in Ho Chi Minh City. Zone, Thanh Hoa province and 3,000 cows. the project’s share the Department of
inaugurated Nghe An Dairy The clinic provides nutrition changed its name into Lam capital) in a powdered Planning and Investment
Factory on 30 June 2005. advices, paediatrics, and Son Milk Joint Stock milk project in New of Thanh Hoa Province.
general health checks for all Company. Zealand. Vinamilk holds 96.33% of
share capital and becomes
functions. It is the first clinic Acquired 100% shares from F&N Vietnam Limited and the parent company of this
in Vietnam to be managed changed its name to Dielac Dairy One Member Co., Ltd. Thisentity.
information by electronics. is 100% new and the second powdered milk factory of
Vinamilk. On December 6th 2013, the
In November, we started our
cow farm development by Company was granted the
Acquired the remaining shares of Lam Son Milk Joint investment certificate no.
buying Tuyen Quang cow Stock Company and changed its name to Lam Son Dairy 663/BKHĐT-ĐTRNN by the
farm with 1,400 heads. The One Member Co., Ltd. Ministry of Planning and
farm was put into operation
afterwards. Inaugurated and put the Beverage Factory into operation Investment regarding the
in Binh Duong. acquisition of a controlling
stake (70%) of Driftwood
Vinamilk was honoured by Forbes Asia for its “Top 200 Dairy Holding Corporation,
Best Under A Million” in Asia 2012. This was the first andCalifornia, USA.
unique a Vietnamese company was honoured in the list
VIETNAM DAIRY PRODUCTS SUSTAINABLE
JOINT STOCK COMPANY
of Forbes Asia. DEVELOPMENT REPORT
10 11
INFORMATION ABOUT
BUSINESS AREAS, PRODUCTS AND MARKET
224,000
MORE THAN
MAIN PRODUCTS Vinamilk products come to customers through the system of distribution partners and direct distribution
channel of Vinamilk:
66 Powdered milk and nutrition powder: Dielac, Ridielac.
66 Distribution partner system (General Trade Channel – GT): By the end of 2013, Vinamilk had totally 266
66 Condensed milk: Longevity Milk, Southern Star.
distributors (2012: 250 distributors) and about 224,000 retail outlets (2012: 196,000 retail outlets).
66 Liquid milk: Vinamilk 100% Flex, ADM.
66 Nationwide chain of supermarkets (Modern Trade Channel - MT): Vinamilk is directly dealing with over
66 Yoghurt, ice-cream, cheese: Vinamilk yoghurt – ice-cream – cheese; Susu, Probi, and ProBeauty yoghurt . 600 supermarkets across the country.
66 Soy milk and beverage: GoldSoy soy milk, Vfresh, Icy. 66 Vinamilk showrooms: Vinamilk has set up a showroom system in charge of introducing and selling
Vinamilk’s product, including 60 showrooms across the country.
MAIN MARKET 66 Direct distribution to factories, schools, and entertainment sites (KA Channel).
66 Vinamilk products mainly serve Vietnam market with all lines of product. Domestic market takes account of
80% of Vinamilk’s total revenue. »» In foreign market: Vinamilk’s customers are distributors.
66 For foreign market, the main markets of Vinamilk are Middle-East area, South-East Asia, and Africa. Main
exported products are powdered milk and condensed milk. In 2013, export revenue made up 14% Vinamilk’s
total revenue.
5,570
16.5% 16.64% 12.3%
20% 20%
TOTAL NUMBER OF
10% 10%
EMPLOYEES IN 2013
0% 0%
2011 2012 2013 2011 2012 2013
15,583 15,493
5,561
12,477
HA NOI
03
Sales offices in Ha Noi, Da Nang,
and Can Tho.
Head office at 10 Tan Trao,
02
Tan Phu Ward, District 7, HCMC.
Hoang Sa
Logistics enterprises in Ha Noi islands
and HCMC.
12
Besides 12 factories under the parent
company, Vinamilk has one factory in
operation under its subsidiary (Lam Son
Factories in operation. Dairy Factory belonging to Lam Son
Milk Factory Co., Ltd.).
The number of
factories in commercial 01
operation increased by 2 Health care clinic in HCMC
In 2013, Vinamilk promoted its operations to expand »» Driftwood Dairy Holding Corporation: is a dairy
market in foreign countries. By the end of 2013 and production company based in California and has
in the early of 2014, Vinamilk had 2 more subsidiaries a long tradition. By the end of 2013, Vinamilk had
operating in milk production: completed the acquisition of 70% of Driftwood’s
capital to expand market in the U.S.
»» Angkor Dairy Products Co., Ltd: This company
is newly established in Cambodia in a form of In addition, aiming to continue strategy of dairy
joint venture company between Vinamilk and cow development, Vinamilk cooperated with Thong
distribution partner in Cambodia – B.P.C Trading Nhat Thanh Hoa One-member Co., Ltd. to establish
Company Limited. The joint venture company has Thong Nhat Thanh Hoa Dairy Cow Two-member Co.,
share capital of USD20.010.000, in which, Vinamilk Ltd. with share capital of VND600 billion, in which,
contributed 51% and Cambodia partner 49%. The Vinamilk contributed 96.33% and Vinamilk and Thong
goal of this company is to build dairy factory to Nhat Thanh Hoa One-member Co., Ltd. contributed
serve Cambodian market. Currently, the factory 3.67%. Main business operation of the company is to
construction project is being implemented and be a center for breeding dairy cows with high-quality By the end of 2013, Vinamilk had 6 subsidiaries and 2 associates:
is expected to come into operation by the end technique and technology and developing dairy cows.
of 2015.
Owned by
Share capital
No. Company name Main business operations Vinamilk
(VND billion)
(%)
Subsidiaries
Vietnam Dairy Cow Driftwood Dairy Holding Vietnam Dairy Cow One-member Breeding dairy cows and
100% 70% 1 840 100%
One-member Co., Ltd. Corporation Co., Ltd. producing fresh milk material
Lam Son Dairy One-member Producing and trading dairy
2 80 100%
Co., Ltd. products
International Real Estate
Lam Son Dairy 3 Trading real estate 160 100%
100 %
19,3 %
Miraka Limited Co., Ltd.
One-member Co., Ltd.
Thong Nhat Thanh Hoa Dairy Cow Breeding dairy cows and
4 600 96.33%
Two-member Co., Ltd. producing fresh milk material
Producing and trading dairy
5 Angkor Dairy Products Co., Ltd. USD20.01 million 51%
International Real Estate Asia Saigon Food products
100% 15%
One-member Co., Ltd. Ingredients JSC (AFI) Driftwood Dairy Holding Producing and trading dairy
6 USD7 million 70%
Corporation products
Associates (*)
Thong Nhat Thanh Hoa Angkor Dairy Products Asia Saigon Food Ingredients JSC Producing cream powder
96,33% 51% 1 120 15%
Dairy Cow Co., Ltd. Co., Ltd. (AFI) used for food
Producing and trading dairy
2 Miraka Limited NZD55 million 19.3%
products
ORGANIZATION STRUCTURE
In 2013, Vinamilk continued
stabilizing organization operation
structure in order to optimize operation
SHAREHOLDERS MEETING
efficiency. During the year, the Company
established two new departments, i.e.
Strategic Planning Dept. and Foreign
BOARD OF MANAGEMENT Investment Management Dept.
BOARD OF MANAGEMENT
STRUCTURE AND MEMBERS
In 2013, the Board of Management was added 2 independent members. As at December 31st 2013, the Board Along with the appointment of Board’s members, the Board’s committees also have been reorganized to improve
consists of 07 members, including 01 chairwoman and 06 members. The Company’s Chairman is female. corporate governance efficiency and develop operation strategies.
(*) Comparing to 2012, in 2013, Audit Committee was deleted since the audit work was assigned for the Inspection
Committee and the Internal Audit Department.
Mr. LE SONG LAI Ms. MAI KIEU LIEN Ms. NGO THI THU TRANG Ms. LE THI BANG TAM Mr. HA VAN THAM Ms. MAI KIEU LIEN Mr. LE SONG LAI
Chief of the Committee Member Member Member Chief of the Committee Member Member
Mr. LE ANH MINH Mr. NG JUI SIA Mr. HA VAN THAM Ms. NGO THI THU TRANG
Ms. LE THI BANG TAM Mr. NG JUI SIA Mr. LE ANH MINH
Chief of the Committee Member Member Member
Chief of the Committee Member Member
THE MECHANISM
OF RECEIVING
SUSTAINABLE RECOMENDATIONS
DEVELOPMENT ISSUES FROM STAKEHOLDERS
Continuing the background from 2013, Vinamilk TO SHAREHOLDERS TO CUSTOMERS AND CONSUMERS TO EMPLOYEES
continue pursuing our avidities/programs related
to sustainable development, including: Shareholders are an important related party of the Vinamilk maintained a relation and discussion with The information channels between Vinamilk and
Company. The relationship between Vinamilk and the customers periodically or regularly. According its employees take various forms. Employees can
»» Continue pursuing and implementing shareholders is being paid special attention. Vinamilk to Vinamilk’s regulations, at least once a year, the contribute their opinions to the Company periodically
programs about use of clean energy and has established an Investor Relation Department Company will survey opinions and gratification or regularly by:
energy savings. to be responsible for establishing and maintaining of customers. The customers can also contact the »» Proposing their opinions and recommendations
the relations as well as receiving opinions and Company at any time via hot line or Vinamilk’s website. every six months within the consideration period
»» Continue implementing activities to improve recommendations from shareholders. Besides, this is of the managers
working environment. an information channel to contact potential investors. To consumers, Vinamilk frequently receives opinions
»» Giving opinions in employee surveys (at least
This is an important communication channel to enable from consumers through responding to queries via
»» Attend in seminars about corporate once a year)
Vinamilk to approach to the expectations and concerns hot line, directly meeting and dealing with complaints
governance and sustainable development from stakeholders for the Company. Vinamilk’s investor from customers. »» Sending their opinions directly to the company’s
organized by ACGA – Asian Corporate relations function is very flexible and to create the email address: vinamilk@vinamilk.com.vn
Governance Association to get experience in most favourable conditions for the investors to get
practice and concerns of stakeholders about update on the Company’s operations through: Besides, in delicate cases or if the employee wants
there matters. to keep his information confidential, he can contact
»» Attending the Annual General Meeting of Shareholders the Compliance Department by email (compliance@
vinamilk.com.vn) or by phone calls. This Department is
»» Visiting our head office directly.
directly under CEO.
»» Investor relation personnel can discuss with
investors through telephone, teleconference
»» Responding to investors’ queries via email
»» Responding to investors’ queries through Q&A
on our website at
http://www.vinamilk.com.vn/?vnm=FAQ
»» Investor relation personnel can attend investment
seminars organized by securities companies,
institutional funds.
Vision
To become a world grade brand
in food and beverage industry,
where people put all their trust in
nutrient and health products. Core values ETHICS
Code of conduct To respect the established
ethical standards and act
Mission
accordingly.
19 Merit – Contributions to Education and Training of Vietnam Minister of Education and Training
20 Merit – A noble heart Committee of Vietnamese Fatherland Front
Merit – Excellent achievements in business operation Chairman of Binh Duong Province People’s
21
contributing to the development of Binh Duong Province Committee
22 Nation Environment Award Ministry of Natural Resource and Environment
23 1st position in Top 100 best-loved employers 2013 careerbuilder.vn
3 position in Top 100 companies having best working
rd
THE INFORMATION ABOUT THE 2013 REPORT Contents on sustainable development are defined by »» Customers and consumers: Results of customer
Vinamilk based on the interest level of the company and consumer surveys and opinions received
and stakeholders. The interest of concerned parties is through consulting and customer services.
acknowledged and evaluated in terms of priority by
Vinamilk via the below information channels: »» Employees: Results of employee surveys and
other opinion receiving channels.
2013 SUSTAINABLE DEVELOPMENT REPORT »» Shareholders: Through opinions of the members
of the BOM who represent major shareholders »» Local authorities: While working in investment
OVERVIEW
and opinions recorded in Shareholder relation projects and operating in the local areas.
2012 is the first year Vinamilk submitted Sustainable activities.
Development Report separately. The report was
concerned by many investors and stakeholders and at
the same time, gave more comprehensively information Major issues
In 2013, in issues to be concerned remained
about Vinamilk aside from annual report.
those in 2012:
Local development Product
To consumers
TO SHAREHOLDERS
VND 3,834 billion for dividend payment
To To
shareholders community
TO THE STATE
VND 3,250 billion for tax payment
To To
the State partners
TO EMPLOYEES
VND 1,534 billion forandsalary,allowance.
reward,
To employees
• Responsibility to products
• Environment and Energy
• Working environment
• Economic development
• Community support and development
38 39
PRODUCT RESPONSIBILITY
01 SAFE PRODUCTS
The products created by Vinamilk are the most direct values that Vinamilk brings to
the consumers and are considered a bridge connecting Vinamilk to stakeholders.
During its operation period, the Company is always consistent with the policy of In 2013, Vinamilk continued improving
providing safe and nutritious products, contributing in physical and intelligent and developing product quality control
development as well as protecting human health. system with the objective that all
products given to consumers must be
ensured the highest safety and quality.
Vinamilk’s responsibility to products is reflected through the following aspects:
FORMULA
IDEA FORMULA EXPERIMENTAL
RESEARCH AND
DEVELOPMENT TESTING PRODUCTION
DEVELOPMENT
Input material is the factor directly affecting product quality. In Vinamilk, we maintain and ensure that material Fresh milk is one of the most important materials in
quality is always controlled strictly and appropriately. milk production. In 2013, Vinamilk continued pushing
the development strategy of large-scale farm system
INPUT MATERIAL QUALITY CONTROL PROCESS and modern technology in order to increase the
supply sources of safe and nutritious fresh milk
material.
In 2013, Vinamilk continued maintained its strategy of prioritizing to choose the material supply sources from
advanced agricultures with high standards and requirements on food quality and safety. The main supply sources
of Vinamilk now are the United States of America, New Zealand, and European countries.
03
The 2013 Product Responsibility Indexes are as follows:
PROVIDINGTRUTHFUL AND COMPLETE INFORMATION
ABOUT THE PRODUCTS No. Criteria Indicator Remark
PRODUCT LABELLING 4
Rate of product portfolios meeting HACCP
100%
standards and quality control system ISO 9001:2008.
This is the easiest and most direct method
to provide the products’ information to Lam Son Dairy Factory is
the consumers. All the Vinamilk products’ »» Information about the Company and expected to be certified in the
information is truthfully and completely the manufacturing unit 2nd quarter of 2014.
Number of factories having Experiment Room with
labelled regarding many aspects as follows: 5 ISO/IEC 17025:2005 certified regarding Chemistry 10/13 Vietnam Powdered Milk Factory
66 Information about Vinamilk and code
of the manufacturing unit. and Biology. and Vietnam Dairy Factory will
»» Product properties
be promoted to obtain the
66 Contact phone number and email certification in 2014.
66 Product type.
address
6 Number of food safety violation cases. 0
66 Ingredients.
66 Information about nutrition consulting
service Number of Trademark and Product Information
66 Nutrition facts. 7 0
infringement cases.
»» Usage instruction This information is provided not only for
consumers but also for Vinamilk to control Number of cases regarding low quality product
8 0
66 Usage instruction the quality and expiry date, and tracing when recall.
necessary.
66 Storage instruction
NUTRITION CONSULTING ACTIVITIES
»» Manufacture date and expiry date
In 2013, Vinamilk continued maintaining
»» Information about product quality and developing performance of nutrition
control consulting centres in Ha Noi, Da Nang and
Can Tho to offer free consultancy about
66 Basic quality standards. nutritional health, especially kid nutrition.
Beside the consulting service at the centres,
66 Quality control systems applied to the consulting team regularly organized the
manufacturing. consultancy at the schools and directly met
the elderly in difficult circumstances.
ENVIRONMENT
& ENERGY
Environment is one of the top concerns
of humanity. As a producer, Vinamilk is
always aware that any business activities
have impact on the environment. We
are committed to the implementation
Advanced of environmental protection goals
production by taking with specific, practical and
technology
comprehensive actions.
Quoted from: “Corporate Social Responsibility Policy of Vinamilk”.
Environment
Raising management in
community alignment to Environmental pollution and climate changes remain head-aching issues to many nations
awareness ISO and require persistent efforts from every nation, every organization and everyone. Floods
in many countries, including Vietnam, and pollution increasing at an alarming rate in many
14001: 2004 cities are warning messages about our living environment.
For Vinamilk’s activities, we commit pursuing solutions which aim at minimizing the
impact on the environment and make the best use of natural resources and energy.
Raising Effective
staff waste treatment
awareness and control
49
As mentioned in the Sustainable Development IMPROVING MANAGEMENT QUALITY INCREASING THE USE OF CLEAN AND
Report 2012, together with production scale RENEWABLE ENERGY RESOURCES
expansion, Vinamilk focused on energy utilization In 2013, Vinamilk continued to establish and apply
management and improvement as the main goal in the energy management system pursuant to the ISO As mentioned in the previous report, Vinamilk
achieving sustainable development. To accomplish 50001:2011. At present, the energy management continues to make use of clean and renewable
this goal, Vinamilk continued to implement system pursuant to the ISO 50001:2011 is applied energy to replace the traditional FO, DO oil. This is the
BILLION
simultaneous and intertwined actions, including: to all Vinamilk’s factories. According to its plan in key solution to minimize emission of waste causing
2014, Vinamilk will obtain accreditation for external greenhouse effect, one of the main factors leading TOTAL INVESTMENT FOR
»» Improving energy utilization efficiency. assessment on its implementation of this standard. In
2013, Vinamilk conducted energy audit at three more
to climate change. In 2013, Vinamilk continued
enhancing its projects using Biomass and CNG.
ENERGY-SAVING LIGHTING
»» Increasing the usage of clean energy resources. factories; therefore, the total factories which are under DEVICES
energy audit are now nice. Vinamilk’s goal is to apply these energy resources in all
factories, in which:
Accordingly, the goals set for the period »» 5 factories using Biomass fuel: Can Tho Factory,
from 2012 to 2017 are: »» Biomass fuel is used in factories where have enough Sai Gon Factory, Binh Dinh Factory, Tien Son
ground area for this application. Factory, and Vietnam Dairy Factory.
»» Saving energy at least by 3% after 5 years.
»» CNG fuel is used in factories where ground area is »» » 4 factories using CNG fuel: Dielac Powdered
»» Minimizing CO2 emissions and waste causing limited. Milk Factory, Truong Tho Dairy Factory, Thong
greenhouse effect. Nhat Dairy Factory, and Vietnam Powdered Milk
At present, there are 9 among factories using these Factory.
»» Establishing and applying energy two kinds of fuel, especially the two high-capacity
management system in alignment to the ISO factories which are Vietnam Dairy Factory and Vietnam In 2014, Vinamilk will continue to use Biomass in Nghe
50001:2011 on Energy Management in all Powdered Milk Factory: An Dairy Factory and Lam Son Diary Factory.
factories.
In 2013, Vinamilk completed the experimental project to improve Biomass or biomass fuel comprises chemical gas, we have to use from 70 to 75kg of FO oil
the effectiveness of energy consumption for lighting in Sai Gon energy, sun energy accumulated through in average.
Dairy Factory. This project includes the design revamping to photosynthesis. This kind of fuel is made from
optimize capacity, usage of energy saving lighting devices such agricultural waste (thatch, sugarcane bagasse, CNG (Compressed Natural Gas) is a natural gas
as LED, Compact T5-T8 lamps. This can help to save up to 70% of corn peel and fiber, etc.), forestry waste (dry that is compressed in high pressure. Consumption
energy for lighting compared to high voltage lamps. leaves, wood chips, etc.), shredded papers, of CNG does not emit much toxic gases such as
sawdust, etc. This energy resource can be NO, CO, SO2 and produces almost no dust. This
Based on this result, Vinamilk approved the program to use energy renewable and beneficial to the environment can help to reduce by 93% of CO2 emission, 33%
saving devices for lighting in all factories with a total investment of thanks to waste recycling, no toxic gas of NO gas and 50% of hydrocarbon, compared to
VND 49 billion. Vinamilk is now holding biddings to find partners in emission and no contribution to greenhouse using oil or petrol engine.
implementing this program. It is expected that by the end of 2014, gas emission. Meanwhile, to produce 1 ton of
all factories will be using this system.
% of output fluctuation 19.56% 16.07% 5.96% Total output (Unit: 1,000L of fresh milk) 12,720 20,050 23,950
Total of average used energy per unit of product by each kind (/Ton of products) Total of average used energy per unit of product by each kind (/1,000L)
0 10 20 0 0.3 0.5 100 120 140 0 0.04 0.08 0.12 0 0.2 0.5 0 2.5 5 7.5 10 0 50 100 150 200
Oil (kg) Gas (kg) Electricity (kWh) Biomass (Tonnes of steam) CNG (mm BTU) Oil (Kg/1000L) Electricity (kwh/1000L)
The statistics indicate that: The statistics indicate that energy usage at farms is relatively stable over the years.
»» The use of clean energy has increased. The use of FO oil in production has been reduced by over 60% compared
with 2012.
»» Electricity utilization efficiency in 2013 was lower than in 2012. This was because Vinamilk had 2 high-capacity
factories put in trial operation and accepted in 2013. Meanwhile, the remaining factories were influenced by
the change of production plans after two large factories came to operation. In 2014, Vinamilk will continue to
monitor changes in energy utilization efficiency to take appropriate measures for improvement.
WATER UTILIZATION
Water is a natural resource taking a key role in Table of measurement criteria on water utilization
During the production process at Vinamilk’s factories, waste is In 2013, Vinamilk continued applying various factories had a sewage treatment system in place,
measures to control and management of waste which satisfied the QCVN 40:2011 standards on
discharged under the forms of solid waste, liquid waste and sources and production environment. In addition industrial sewage treatment.
exhaust fume. All of those are strictly controlled and managed to make on-going investment in appropriate
waste treatment systems, Vinamilk also applied
»» Had 11/13 factories obtained ISO 1400:2004
by Vinamilk with appropriate solutions and equipment system environmental management systems to maximize
certi¬ficates on environment management. Two
new factories coming into operation recently will be
the control effectiveness. In 2013, Vinamilk:
which satisfies the requirements of the ISO 14001:2004 on assessed for accreditation in 2014 and early in 2015.
Environment Management. »» Put 2 modern sewage treatment systems into »» Had 4/5 farms had a sewage treatment system which
operation at Vietnam Milk Factory and Vietnam satisfi¬ed the QCVN 39:2011 standards on irrigation
Powdered Milk Factory, with a total investment water. The treatment system at the remaining farm
of over VND 50 billion. Therefore, 13/13 Vinamilk’s will be upgraded in mid-2014.
PRODUCTION ENVIRONMENT IN Solid waste The table of measurement criteria of waste control in production:
FACTORIES
Solid waste includes waste sludge, scrap and
2011 2012 2013
All products are made in factories of Vinamilk. During used equipment and facilities. Solid waste
the production process, waste is discharged under the is classified into two groups: hazardous and
Total output (ton) 662,146 768,552 814,387
forms of solid waste, liquid waste and exhaust fume. non-hazardous solid waste. It is collected and
All of those are strictly controlled and managed by stored in separate places. Waste sludge, in fact,
Total waste volume
Vinamilk with appropriate solutions and equipment is the solid waste from the sewage treatment
system which satisfies the requirements of the ISO process, desiccated and pressed.
»» Solid waste: • Total volume (Kg) 1,864,689 2,244,183 2,671,849
14001:2004 on Environment Management.
Hazardous solid waste and sludge will be
• Kg/ ton of products 2.82 2.92 3.28
transferred to selected waste treatment
entities. These entities, selected by Vinamilk, »» Liquid waste: • Total volume (litter) 2,740,273 2,852,842 4,086,107
have enough competence, specialized
knowledge and experience in waste • Litter/ ton of products 4.14 3.71 5.01
treatment. Their operations are licensed and
meet all the requirements as well as standards »» Exhaust fume: • Total volume (kg) 89,504,911 95,556,673 89,566,251
of the laws applicable in this industry.
• Total volume (kg) 135 124 109.98
Liquid waste
»» Waste sludge: • Total volume (kg) 3,419,248 3,153,768 3,124,516
Liquid waste is sewage disposed during the
production, equipment cleaning and other • Kg/ton of products 5.2 4.1 3.83
activities. Sewage is transmitted and collected
to be processed in the sewage treatment Percentage of hazardous waste in total waste volume 0.05% 0.05% 0.05%
system. Solid waste will be separated from the
sewage and pressed into sludge. Only treated Exhaust gas causing greenhouse effects directly
89,504,911 95,556,673 89,566,251
water which satisfied disposal standards can or indirectly (kg)
then be disposed into general discharge
system or the environment. At present, all »» CO2 89,504,911 95,556,673 89,566,251
factories of Vinamilk are invested to establish a
sewage treatment system which satisfies the »» Volume of NOx, SOx - - -
Vietnam standards (QCVN 40:2011 – National
technical requirements on industrial sewage). »» Ozone layer destroying emissions - - -
BREEDING ENVIRONMENT
Cow breeding activities mainly produces organic solid farms built before being acquired by Vinamilk. It is
waste and sewage. Similar to production activities, expected that treatment systems implementation
Vinamilk also pursues the target of effectively will start in mid-2014.
controlling the waste disposed into the environment
TOTAL VOLUME
in breeding activities. Compared with 2012, Vinamilk: The current waste treatment solution is collecting
OF FRESH MILK
waste in the treatment system and treating by
(1000 LITER
»» Completed building and put into use sewage separating dry and liquid waste. After that, dry waste
OF FRESH MILK)
treatment systems on Lam Dong farms, therefore, is processed and turns into organic fertilizer used in
the total number of farms having treatment systems agriculture. The liquid waste will be treated according 12,720 20,050 23,950
are now 4/5 farms. to irrigation water standards for recycling or disinfected
before being disposed into the environment. This
»» Completed establishing complete processing solution helps to make the best use of waste for
solutions for the remaining farms. These are the agricultural purposes.
2011
2012
2013
Water pipes
WORKFORCE OVERVIEW
The workforce of Vinamilk is a consolidation of equal treatment to employees regardless of their
People are the centre in all activities of any organization. The key to success Workforce (Vinamilk and its subsidiaries)
of every organization is to create a working environment and culture that
attract, unite and motivate every employee. Together with vision for growth 2011 2012 2013
and scale expansion, an attractive, dynamic working environment that satisfies Average number of employees 4,564 4,853 5,570
expectations of our stakeholders and especially employees play an important Male 3,354 3,605 4,143
role in the overall development strategy of Vinamilk.
73.5% 74.3% 74.4%
Gender
We aim at building a working environment that ensures the following aspects: Female 1,210 1,248 1,427
26.5% 25.7% 25.6%
Production - Processing 1,625 1,703 1,813
35.6% 35.1% 28.7%
Sales 316 307 334
6.9% 6.3% 6.00%
Setting up Categories Agricultural activities 185 235 251
safe working 4.1% 4.8% 4.51%
conditions and
Supporting activities (Purchasing,
healthcare.
Developing a Accounting, Human Resources, 2,438 2,608 3,172
diversified labour Administration, IT, etc.)
Promoting a line-up, where 53.4% 53.7% 60.75%
harmonious personal differences
working < 30 1,413 1,448 1,835
are respected and
culture. discrimination is not 31.0% 29.8% 32.94%
allowed. 30 -> 40 1,925 2,046 2,263
42.2% 42.2% 40.63%
Age
40 -> 50 923 1,009 1,100
20.2% 20.8% 19.75%
Providing training Setting up labour > 50 303 350 372
and opportunities relationship based 6.6% 7.2% 6.68%
for career on free will and
promotion. legal compliance. Vocational training 2,275 2,322 2,469
49.8% 47.9% 44.33%
Recognizing College 357 396 505
and rewarding 7.8% 8.2% 9.07%
employees’ Education
performance. University 1,879 2,075 2,515
41.2% 42.8% 45.15%
Postgraduate 53 60 81
1.2% 1.1% 1.45%
Rate of employees with labour »» Medical units are set up in working facilities to
100% 100% 100% Support terms 2012 2013
contracts provide preventative and first-aid measures and
deal with incidents of labour safety from employees. All All
Fluctuation in employees 24/24 Accident
employees employees
LABOUR SAFETY AND HEALTH OFFICERS
New recruit: 442 565 852
All
The labour safety and health officer network was
Quitting (**) 239 229 227 employees
established to improve safety and health at factories
Comprehensive Manager (since Sep
and logistics departments of Vinamilk. At present, 13
»» Retirement 17 20 28 health insurance level 2013, this is
factories and 2 depots have labour safety and health
applied to all
teams. Members of this team are also employees
»» Contract termination 222 209 199 employees.)
and workers who are in charge of checking the
occupational safety and sanitation in their workshop
(*) The under-1-year labour contracts are one of either: Health insurance Manager
and disseminating information on safety and sanitation
for family members level
to their colleagues. To ensure effectiveness of this team,
»» Probationary contract. we regularly organize training courses for them. In
Accident-related All All
»» Contracts with the employees, who have the total working months till their retirement age under 12 months. 2013, we issued regulations on safety and health officer
deaths or injuries employees employees
network to systemize this activity.
(**) In case of termination of the labour contract, we applied the provisions of the law on notice period. Accordingly,
the notice period is 30 days for a ¬fixed-term contract and 45 days for an inde¬finite contract.
11.7
66 Female employees : 02 times/year.
»» Provide influenza vaccination to all employees.
The success and growth of Vinamilk come from the efforts and performance Staff development plays an important role in creating a great working environment. A good personnel
of all employees. Recognizing and satisfactorily paying for the contribution of development policy is a motivation for employees to promote their capability, strengthen the bond with the
employees are always important concerns of Vinamilk. Policies on remuneration Company and then make bigger contributions to the Company.
for employees are considered and adjusted periodically every year, and set on
the following goals: We do not declare that Vinamilk has an ideal environment for personnel development but we can confirm that
we always try our best to reach that goal along each year.
»» Fulfilling sensible needs in life of employees.
»» Training
»» Making remuneration commensurate with the contribution of employees
to Company’s success. In 2013, Vinamilk’s training activities focused on improving training quality and effectiveness. Besides the
purpose of satisfying demands of short-term jobs, training activities also aimed at developing personnel and
»» Help employees settle down to work and uphold their capabilities workforce in the long term.
to the best.
22.7
In 2013, in addition to regular training activities, Vinamilk implemented various training programs to improve
% Remuneration policies of Vinamilk are built in reward with the value of each
job. In Vinamilk, there is no difference in remuneration between male and
female employees.
managers’ capability, such as "Master of Business Administration", "Chief Executive Officer", and "Improving
management for middle managers".
Vinamilk is proud that our efforts have brought good results in maintaining a
INCREASING RATE OF stable workforce, expanding the workforce to attract more talented personnel
AVERAGE SALARY2013/2012 for the Company’s expansion.
Bonus from bonus and welfare funds (VND billion) 284.7 445.2 631
+178%
Training expenses
2011
2012
2013
compared with 2012
Training hours/employee 31 24 10.8 Staff assessment activities serve as a bridge to Vinamilk committed that all employees are
connect and provide useful information for other provided equal opportunities based on capability.
KPIs about budget and expense purposes: The Company’s selections are not affected by
for training activities factors such as genders, ages, religions.
66 Helping employees to self-assess their work
Budget for training activities results and improve.
6.4 5 6.5 Number of Rate
(VND billion) Year
66 Creating an interaction and dialogue mechanism employees promoted (*) (%)
Actual training expense between employees and managers. 2011 38 1.22%
1.5 1.8 3.6
(VND Billion)
66 Providing useful information for the 2012 42 0.98%
Rate of actual expense/budget development of training programs. 2013 97 1.74%
23.9% 36.4% 49%
(%)
66 Providing input to consider increasing salary
for employees having good performance in (*) Statistics of Vinamilk, not including subsidiaries.
The above figures indicate that the implementation of training activities in 2013 met the expectations better. the year.
Average number of training hours per employee was lower than previous years due to the reduction of machine This is the number of employees promoted to senior
operation training as operation had become stable. 66 Providing input to consider promotion. officers according to the ranking system of Vinamilk.
ECONOMIC DEVELOPMENT
COMPLYING WITH TAX OBLIGATION In the period 2012-2013, Vinamilk participated in the
program with more than 1,300 tons of powdered
Vinamilk commits to fulfill its tax duties in a complete, milk and 11.4 million liters of liquor milk contributed.
timely and law-abiding manner. Vinamilk has registered to continue joining in the
program in 2014.
In its operation, Vinamilk tends to
Vinamilk is proud to become one of the highest
combine its development with economic taxpayers in Vietnam. In 2013, Vinamilk was ranked the CREATING NEW JOBS AND HIRING LOCAL
development and regional development. 8th position in Top 1000 Vietnamese highest corporate WORKERS
taxpayers in all forms of enterprise.
Together with the strategy of dairy farm expansion,
PARTICIPATING IN SOCIAL SECURITY in 2013, Vinamilk started projects in Ha Tinh, Thanh
PROGRAMS Hoa, and Tay Ninh. When these projects come into
operations in the period 2014-2015, Vinamilk also
Market Stabilization Program on dairy products in Ho directly and indirectly creates new jobs in the local
Chi Minh City is a campaign chaired and promulgated areas.
by the People's Committee of Ho Chi Minh City to
provide consumers with high-quality and nutritious Besides, with the development of distribution network,
dairy products that satisfy food safety with reasonable Vinamilk has also been contributing its eff¬orts to
prices, partly contributing to ensure social security. establish a system with more than 250 enterprises and
over 4,500 permanent jobs across the country.
Vinamilk has actively participated in this program since
2008. Accordingly, Vinamilk committed to supply dairy
products for the market at the reasonable and stable
prices. The participants of this program also committed
to supply commodities under the instruction of the
Department of Industry and Trade.
1,300
TONS OF POWDERED MILK
FOR SOCIAL SECURITY DURING
2012-2013
DEVELOPING AGRICULTURE FOR DEVELOPING TOGETHER WITH DAIRY COW »» Conducting 44 training meetings across the TOTAL COWS AT FARMS
PROCESSING DEMANDS RAISERS country with the topic “Instruction about dairy
cow breeding techniques” with the participation 6,712 8,124 8,818
Together with the strategy of pushing development In addition to developing large-scaled farm pattern, from 1,605 households.
in fresh milk material zones, Vinamilk is proud to be Vinamilk always accompanies with the dairy cow
the leading entity that has much contribution to the breeding raisers in developing milk material zones and In addition, for the purpose of supporting
development of dairy cow breeding industry with improving operation efficiency of breeding households. breeding households in Lunar New Year as well as
modern method, improving efficiency and enhancing consolidating relationship between Vinamilk and
product values for both Vinamilk and cow breeding »» Creating stable output sources and reasonable the households, the Company has implemented the
households in Vietnam. purchasing prices for the farmers. program “Accumulate points with Vinamilk to greet
Spring and Tet holidays”. With this program, Vinamilk
»» Supporting farmers in operation development and has totally supported more than VDN18 billion to
BUILDING FARMS AND APPLYING efficiency improvement. 4.724 households. Each household received more
2011
2012
2013
ADVANCED BREEDING TECHNOLOGY
»» Pushing the development of other agricultural than VND3.8 billion in average.
Till the end of 2013, Vinamilk had 5 dairy farms under products used for feeding cows (such as corn,
elephant grass, fresh straw etc.). The table below shows the Development Index
operation with the total area of 170 hectares and about
in developing fresh milk material zones:
8,800 heads of cow. Always updating and applying
advanced breeding technology is the consistent In 2013, Vinamilk pushed the agricultural encouraging
objective throughout the dairy cow development activities as well as training courses about breeding
2011 2012 2013
strategy of Vinamilk. techniques and breed to share the farmers with
modern techniques and technologies: Farm scale
At present, the leading partners in the world regarding »» Directly giving advices to 4,125 households having
dairy cow breeding field are interested in and want Total area of all farms
poor quality milk. As a result, over 80% of households 161 170 170
to cooperate with Vinamilk to build large-scaled and (Unit: hectares)
improve quality of milk after 2 weeks from the
modern dairy farms in Vietnam. consulting date. Total heads of cow 6,712 8,124 8,818
Purchasing activities
COMMUNITY
SUPPORT AND DEVELOPMENT
As the tradition
goes, along with Trade
Union, Communist Youth
Union, and all employees
of the Company, in 2013,
Vinamilk organized a lot
of activities to support
the community in a
spirit of solidarity with
practical and meaningful
activities.
Every year, the “Vietnam Never Stops Growing” Milk Within 20 years from 1990 to 2010, the dairy product consumption rate in Vietnam has increased 30
Fund organizes the milk gifting ceremonies to directly times, from 0.47 litters/person/year up to 14,819 litters/person/year. However, this number is still very low
give milk to the poor children in the remote places and compared to other countries in the world as well as in the region such as Thailand (23 litters/person/year),
the children in social protection centres in provinces China (25 litters/person/year), etc. (According to report on domestic milk market in July 2012 and estimate
from the North to the South. The practical activities of for the last 5 months of 2012 from Vietnam Industry and Trade Information Centre).
the Fund during the last over 5 years have really offer
the poor children in Vietnam chances to drink milk. In particular, the percentages of malnourished children in Vietnam were 16.2% (waterlow), 26.7% (stunting),
and 6.7% (wasting) according to the nutritional surveillance as disclosed by the General Department of
5-YEAR DEVELOPMENTAL MILESTONES: Statistics and the National Institute of Nutrition. (Source: Master Trinh Hong Son - Director of Media Centre
under the National Institute of Nutrition).
Vinamilk and On the basis of the The Fund developed
Vietnam Children One Million Cups of from 3 million cups of
Sponsorship Fund Milk Fund’s success, milk to 6 million cups
jointly established
the Fund developed of milk.
One Million Cups of
Milk Fund. Vinamilk into 3 million cups
was the major of milk.
sponsor of this fund.
Activities in 2013:
»» Awarded 1,000 scholarships, equivalent to
VND1 billion.
»» Coordinated with the Ministry of Education and
Training to hold 10-year Anniversary Ceremony of
Vinamilk – Nurturing Vietnamese Young Talent” fund
in school year 2012-2013 and organize program
“Shining Vietnamese Talent” for elementary school
pupils with the participation of more than 2,000
pupils.
SOCIAL ACTIVITIES
The traditional "Good leaves protect torn leaves" of Vietnamese people is always considered the Vinamilk’s general
orientation in its social activities. The activities have been organized and received the enthusiastic response of all Vinamilk supports victims of storms and flood in
the company's employees. the Central of Vietnam
Our charity activities mainly focus on: Responding to the call of the Committee of Vietnam
Fatherland Front towards the north-central provinces affected
»» Giving financial support for treatment of illness, incurable diseases, and severe diseases in the local and by Storm no.10. From October 12th to October 15th, Vinamilk
in the hospital. paid a visit and directly gave gifts to the people who suffered
from the severe damages caused by Storm no.10. in Quang
»» Supporting and giving gifts and milk for the children with special needs in the orphanages and abandoned
Tri, Quang Binh, Nghe An, and Thanh Hoa provinces. The total
children in the humanity centers.
amount for support was up to VND2.3 billion.
»» Supporting for people experiencing natural disasters and programs for islands of the country.
In December 2013, Vinamilk totally gave VND250 million to
»» Joining the blood donation program. support the people in flooded areas of Quang Ngai province
in their house repair and life stabilization.
SOME KEY EVENTS:
Scholarships for poor students in Ben Tre Participating in the “Drops of red blood” campaign
Vinamilk coordinated with the Vietnam Association of Victims of Blood donation is a noble act that everyone can support the participate in this noble program. In 2013, the
Agent Orange/Dioxin in Ben Tre province to award scholarships community. staff from 12 departments of Vinamilk totally
for 280 orphaned, disabled students, poor students, etc. in the donated 850 blood units.
Every day, every hour, there are many cases lacking of blood
school year 2012-2013 with the total amount of VND180 million. supply for emergency surgeries. Just a part of your blood
donated, you can save lives of many patients in need of
blood and help a lot of people at risk of losing their loved
relatives or friends.
Giving powdered milk on the occasion of
inaugurating Vietnam Powdered Milk Factory Blood donation completely does not take much time and
effort, but it is very essential and is a very meaningful act for
The CEO of Vinamilk directly signed on the first 10,000 cans the society.
of Dielac Alpha powered milk which were produced from the
modern production line of this factory, equivalent to VND1 Blood donation is one of the annual practical and specific
billion, to send to the poor children and disabled children with programs of Vinamilk. We call for and encourage our staff to
difficult circumstances through Vietnam Children Sponsor
Fund and Children Sponsor Fund in Binh Duong province.
Program of financing treatment for illness, incurable diseases and severe diseases in
the locals and in the hospitals was implemented by Trade Union of the entities under Vinamilk by
Giving milk on the occasion of inaugurating
965
expenditure extracted from Vinamilk and partly from the contributions of the Company’s staff. In
Vietnam Dairy Factory 2013, we supported
At the inauguration ceremony of Vietnam’s largest dairy VND million for these activities.
factory, we presented the first 150 thousand packs of
Vinamilk 100% UHT milk “Immune Support” which were
produced by the modern production line of the factory, Supporting “Sentimental fishing-net for fishers in Hoang Sa and Truong Sa”
equivalent to VND1 billion, to the children in 10 provinces program by sending messages and giving money. The total value supported for this program was
300
having most malnourished children in the country. more than
This was a gift to celebrate the 20th anniversary of the National VND million.
Program of Malnutrition Prevention and Control. This amount
of money was transferred to “Vietnam Never Stops Growing”
Milk Fund for management and implementation.
Items
referenced Content 2013 Report Content in report Page
to GRI
PART 1: PROFILE DISCLOSURES
1 Strategy and Analysis
1.1 Statement from the most senior decision - maker of the organization Message from Board of Management Chairwoman 4-5
1.2 Description of key impacts, risks, and opportunities x
2 Company Profile
2.1 Name of the Company ü Vinamilk’s Overview 8
Information about business areas, main products and
2.2 Primary brands, products, and/or services ü 10
markets
Operational structure of the Company, Organization structure and operational units
2.3 ü 14-19
Including branches, subsidiaries and associates Map of Organization structure
2.4 Headquarter ü Organizational structure and operational units 14
Number of countries where the Company operates, and names of countries
Information about business areas, main products and
2.5 with either major operations or that are specifically relevant to the ü 10-11
market
sustainability issues covered in the report
2.6 Nature of ownership and legal form ü Scale index of Vinamilk 13
Markets served (including geographic breakdown, sectors served, and types Information about business areas, main products and
2.7 ü 10-11
of customers/beneficiaries) markets
2.8 Scale of the reporting organization ü Scale index of Vinamilk 12-13
Significant changes during the reporting period regarding size, structure, or
2.9 ü Scale index of Vinamilk 12-13
ownership
2.10 Awards received in the reporting period ü Titles achieved in the report period 30
3 Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information provided ü Information about 2013 report 32
3.2 Date of most recent previous report (if any) ü Information about 2013 report 32
3.3 Reporting cycle (annual, biennial, etc.) ü Information about 2013 report 32
3.4 Contact point for questions regarding the report or its contents ü Contact information about the report 33
3.5 Process for defining report content ü Method of determining report content 33
3.6 Boundary of the report (e.g., countries, subsidiaries, joint ventures, etc.) ü Information about 2013 report 32
State any specific limitations on the scope or
3.7 ü Information about 2013 report 32
boundary of the report (if any)
Items Items
referenced Content 2013 Report Content in report Page referenced Content 2013 Report Content in report Page
to GRI to GRI
Basis for reporting on joint ventures, branches, subsidiaries, leased facilities, 4.15 Basis for identification and selection of stakeholders with whom to engage. ü Method of determining report content 33
3.8 outsourced operations, and other entities that can significantly affect x
Approaches to stakeholder engagement, including frequency of engagement
comparability from period to period and/or between organizations 4.16 x
by type and by stakeholder group.
Data measurement techniques and the bases of calculations, including
Key topics and concerns that have been raised through stakeholder
3.9 assumptions and techniques underlying estimations applied to the x
4.17 engagement, and how the Company has responded to those key topics and x
compilation of the Indicators and other information in the report.
concerns, including through its reporting.
Explanation of the effect of any re-statements of information provided
PART 2: DISCLOSURES ON MANAGEMENT APPROACH
in earlier reports, and the reasons for such re-statement (e.g., mergers/
3.10 x
acquisitions, change of base years/periods, nature of business, measurement DMA EC Disclosure on management approach on EC (economic) x
methods)
DMA EN Disclosure on management approach on EN (environmental) x
Significant changes from previous reporting periods in the scope, boundary, or
3.11 ü Information about 2013 report 33 DMA LA Disclosure on management approach on LA (Labour practices and decent work) x
measurement methods applied in the report
3.12 Table identifying the location of the Standard Disclosures in the report. ü Reference table of report content and GRI guidelines 89-95 DMA HR Disclosure on management approach HR (Human rights) x
Policy and current practice with regard to seeking external assurance for the DMA SO Disclosure on management approach SO (Society) x
3.13 x
report DMA PR Disclosure on management approach PR (Product responsibility) x
4 Corporate Governance and Commitments DMA AW Disclosure on management approach AW (Animal welfare) x
Governance structure of the organization, including committees under the Board of Management Structure - Committees of the PART 3: PERFORMANCE INDICATORS
4.1 ü 22-25
highest governance body responsible for specific tasks Board of Management
ECONOMIC
Indicate whether the Chair of the highest governance body is also an executive
4.2 ü Board of Management Structure 22 Direct economic value generated and distributed, including revenues,
officer
operating costs, employee compensation, donations and other community
For organizations that have a unitary board structure, state the number and EC1 ü Benefits for stakeholders in 2013 35
investments, retained earnings and payments to capital providers and
4.3 gender of members of the highest governance body that are independent ü Board of Management Structure 22 governments (taxes)
and/or non-executive members.
Financial implications and other risks and opportunities for the Comapny’s
Mechanisms for shareholders and employees to provide recommendations or EC2 x
4.4 ü Mechanism of receiving opinions from stakeholders 26-27 activities due to climate change
direction to the highest governance body
EC3 Coverage of the Company’s defined benefit plan obligations x
Linkage between compensation for members of the highest governance
4.5 body, senior managers, and executives, and the organization’s performance x EC4 Significant financial assistance received from government x
(including social and environmental performance) Range of ratios of standard entry level wage by gender compared to local
EC5 x
Processes in place for the highest governance body to ensure conflicts of minimum wage at significant locations of operation
4.6 ü Vision, Mission, Core Values - Code of Conduct 28-29
interest are avoided Policy, practices, and proportion of spending on locally-based suppliers at
EC6 x
Process for determining the composition, qualifications, and expertise of the significant locations of operation
4.7 members of the highest governance body and its committees, including any x Procedures for local hiring and proportion of senior management hired from
consideration of gender and other indicators of diversity EC7 x
the local community at locations of significant operation
Internally developed statements of mission or values, codes of conduct, and Development and impact of infrastructure investments and services provided
4.8 principles relevant to economic, environmental, and social performance and ü Vision, Mission, Core Values - Code of Conduct 28-29 EC8 primarily for public benefit through commercial, inkind, or pro bono ü Economic development 77-79
the status of their implementation. engagement
Procedures of the highest governance body for overseeing the organization’s EC9 Describing significant indirect economic impacts, including the extent of impacts ü Economic development 77-79
identification and management of economic, environmental, and social
4.9 ü Consolidation of governance mechanism 22-23 ENVIRONMENTAL
performance, and adherence or compliance with internationally agreed
standards, codes of conduct, and principles. MATERIALS
Processes for evaluating the highest governance body’s own performance, EN1 Materials used by weight or volume x
4.10 x
particularly with respect to economic, environmental, and social performance.
EN2 Percentage of materials used that are recycled input materials x
Explanation of whether and how the precautionary approach or principle is
4.11 x ENERGY
addressed by the organization?
Externally developed economic, environmental, and social charters, principles, EN3 Direct energy consumption by primary energy source ü Effective energy ulization management 50-53
4.12 x
or other initiatives to which the Company subscribes or endorses. EN4 Indirect energy consumption by primary source x
Sate of memberships in associations (such as professional associations) and/ EN5 Energy saved due to conservation and efficiency improvements x
or national/international advocacy organizations in which the Company:
* Has positions in governance bodies; Initiatives to provide energy-efficient or renewable energy based products and
4.13 x EN6 ü Effective energy ulization management 50-53
* Participates in projects or committees; services, and reductions in energy requirements as a result of these initiatives
* Provides substantive funding beyond routine membership dues; EN7 Initiatives to reduce indirect energy consumption and reductions achieved ü Effective energy ulization management 50-53
* Views membership as strategic.
4.14 List of stakeholder groups engaged by the Company ü Commitment to stakeholders 34-35
Items Items
referenced Content 2013 Report Content in report Page referenced Content 2013 Report Content in report Page
to GRI to GRI
WATER LABOR PRACTICES
EN8 Total water withdrawal by source ü Water utilization 54-55 LABOR PRACTICES
EN9 Water sources significantly affected by withdrawal of water ü Water utilization 54-55 Total workforce by employment type, employment contract, and region,
LA1 ü Workforce overview 65
broken down by gender
EN10 Percentage and total volume of water recycled and reused ü Water utilization 54-55
Total number and rate of new employee hires and employee turnover by age
BIODIVERSITY LA2 ü Workforce overview 65
group, gender, and region
Location and size of land owned, leased, managed in, or adjacent to, protected
EN11 x Benefits provided to full-time employees that are not provided to temporary
areas and areas of high biodiversity value outside protected areas LA3 ü Workforce overview 64-75
or part-time employees, by significant locations of operation
Description of significant impacts of activities, products, and services on
LA15 Return to work and retention rates after parental leave, by gender x
EN12 biodiversity in protected areas and areas of high biodiversity value outside x
protected areas LABOR RELATIONS
EN13 Habitats protected or restored x LA4 Percentage of employees covered by collective labor agreements. ü Workforce overview 66
Strategies, current actions, and future plans for managing impacts on Minimum notice period regarding operational changes, including whether it
EN14 x LA5 x
biodiversity is specified in collective agreements.
Number of IUCN Red List species and national conservation list species with Percentage of working time lost due to industrial disputes, strikes and/or lock-
EN15 x FP3 x
habitats in areas affected by operations, by level of extinction risk outs, by country
EMISSIONS OCCUPATIONAL HEALTH AND SAFETY
EN16 Total direct and indirect greenhouse gas emissions by weight ü Environmental management and waste control 56-61 Percentage of total workforce represented in formal joint management–
LA6 worker health and safety committees that help monitor and advise on ü Safe working conditions and health care 67
EN17 Other relevant indirect greenhouse gas emissions by weight ü Environmental management and waste control 56-61
occupational health and safety programs
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved ü Environmental management and waste control 56-61 Rates of injury, occupational diseases, lost days, and absenteeism, and total
LA7 ü Safe working conditions and health care 68
EN19 Emissions of ozone-depleting substances by weight ü Environmental management and waste control 56-61 number of work-related fatalities, by region and by gender
EN20 NOx, SOx, and other significant air emissions by type and weight ü Environmental management and waste control 56-61 Education, training, counseling, prevention, and risk-control programs in
LA8 place to assist workforce members, their families, or community members x
EN21 Total water discharge by quality and destination ü Environmental management and waste control 56-61 regarding serious diseases
EN22 Total weight of waste by type and disposal method ü Environmental management and waste control 56-61 LA9 Health and safety topics covered in formal agreements with trade unions ü Safe working conditions and health care 69
EN23 Total number and volume of significant spills ü Environmental management and waste control 56-61 TRAINING AND EDUCATION
Weight of transported, imported, exported, or treated waste deemed Average hours of training per year per employee by gender, and by employee
EN24 hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and x LA10 ü Staff development 72
category
percentage of transported waste shipped internationally
Programs for skills management and lifelong learning that support the
Identity, size, protected status, and biodiversity value of water bodies LA11 continued employability of employees and assist them in managing career ü Staff development 71-73
EN25 and related habitats significantly affected by the reporting organization’s x endings
discharges of water and runoff
Percentage of employees receiving regular performance and career
PRODUCTS AND SERVICES LA12 ü Staff development 70-71
development reviews, by gender
Initiatives to mitigate environmental impacts of products and services, and DIVERSITY AND EQUAL OPPORTUNITY
EN26 x
extent of impact mitigation
Composition of governance bodies and breakdown of employees per employee
Percentage of products sold and their packaging materials that are reclaimed LA13 category according to gender, age group, minority group membership, and ü Workforce overview 65
EN27 x
by category other indicators of diversity
COMPLIANCE Ratio of basic salary and remuneration of women to men by employee
LA14 ü Recognizing employees’ performance 70-71
Monetary value of significant fines and total number of non-monetary category, by significant locations of operation
EN28 ü Evironment and energy 61
sanctions for non-compliance with environmental laws and regulations HUMAN RIGHTS
TRANSPORT Percentage and total number of significant investment agreements and
Significant environmental impacts of transporting products and other goods HR1 contracts that include clauses incorporating human rights concerns, or that x
EN29 and materials used for the organization’s operations, and transporting x have undergone human rights screening
members of the workforce Percentage of significant suppliers, contractors, and other business partners
HR2 x
EN30 Total environmental protection expenditures and investments by type ü Evironment and energy 48-63 that have undergone human rights screening, and actions taken
Total hours of employee training on policies and procedures concerning
HR3 aspects of human rights that are relevant to operations, including the ü Training 72
percentage of employees trained
NON-DISCRIMINATION
HR4 Total number of incidents of discrimination and corrective actions taken ü Working environment 64
Items Items
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to GRI to GRI
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING PRODUCT RESPONSIBILITY
Operations and significant suppliers identified in which the right to exercise Life cycle stages in which health and safety impacts of products and services
HR5 freedom of association and collective bargaining may be violated or at x PR1COMM are assessed for improvement, and percentage of significant products and ü Safe products 38-44
significant risk, and actions taken to support these rights services categories subject to such procedures
CHILD LABOR Total number of incidents of non-compliance with regulations and voluntary
PR2COMM codes concerning health and safety impacts of products and services during ü Measurement criteria on Product responsibility 2013 47
Operations and significant suppliers identified as having significant risk for Labour relationship established based on free will and 66
their life cycle, by type of outcomes
HR6 incidents of child labor, and measures taken to contribute to the effective ü legal compliance
abolition of child labor Working condition and its impacts on Vinamilk’s partners 75 Percentage of production volume manufactured in sites certified by an
FP5 independent third party according to internationally recognised food safety ü Measurement criteria on Product responsibility 2013 47
FORCED AND COMPULSORY LABOR
management system standards
Operations and significant suppliers identified as having significant risk for Labour relationship established based on free will and 66
Percentage of total sales volume of consumer products, by product category,
HR7 incidents of forced or compulsory labor, and measures to contribute to the ü legal compliance FP6 x
that are lowered in saturated fat, trans-fats, sodium and sugars
elimination of all forms of forced or compulsory labor Working condition and its impacts on Vinamilk’s partners 75
Percentage of total sales volume of consumer products, by product category
SECURITY PRACTICES
FP7 sold, that contain increased fibre, vitamins, minerals, phytochemicals or x
Percentage of security personnel trained in the organization’s policies or functional food additives
HR8 x
procedures concerning aspects of human rights that are relevant to operations
Type of product and service information required by procedures, and
Complete and truthful disclosure of product
INDIGENOUS RIGHTS PR3COMM percentage of significant products and services subject to such information ü 46
information
requirements
Total number of incidents of violations involving rights of indigenous people
HR9 x
and actions taken Policies and practices on communication to consumers about ingredients and Complete and truthful disclosure of product
FP8 ü 46
nutritional information beyond legal requirements information
ASSESSMENT
Total number of incidents of non-compliance with regulations and voluntary
Percentage and total number of operations that have been subject to human
HR10 x PR4 codes concerning product and service information and labeling, by type of ü Measurement criteria on Product responsibility 2013 47
rights reviews and/or impact assessments
outcomes
REMEDIATION
Practices related to customer satisfaction, including results of surveys
PR5 x
Number of grievances related to human rights filed, addressed and resolved measuring customer satisfaction
HR11 x
through formal grievance mechanisms
Programs for adherence to laws, standards, and voluntary codes related
SOCIETY PR6COMM to marketing communications, including advertising, promotion, and ü Measurement criteria on Product responsibility 2013 47
sponsorship
Percentage of operations with implemented local community engagement,
SO1 ü Community support and development 81-87
impact assessments, and development programs Total number of incidents of non-compliance with regulations and voluntary
PR7 codes concerning marketing communications, including advertising, ü Measurement criteria on Product responsibility 2013 47
Operations with significant potential or actual negative impacts on local
SO9 x promotion, and sponsorship by type of outcomes
communities
Total number of substantiated complaints regarding breaches of customer
Prevention and mitigation measures implemented in operations with PR8 x
SO10 x privacy and losses of customer data
significant potential or actual negative impacts on local communities
Monetary value of significant fines for non-compliance with laws and
Nature, scope and effectiveness of any programmes and practices (in-kind PR9 ü Measurement criteria on Product responsibility 2013 47
regulations concerning the provision and use of products and services
contributions, volunteer initiatives, knowledge transfer, partnerships and
FP4 product development) that promote healthy lifestyles; the prevention ü Economic development 77-79 ANIMAL WELFARE
of chronic disease; access to healthy, nutritious and affordable food; and
FP9 Total of animals raised and/or processed, by species and breed type x
improved welfare for communities in need
Policies and practices, by species and breed type, related to the use of
Percentage and total number of business units analyzed for risks related to FP10 x
SO2 ü Vision, Mission, Core Values - Code of Conduct 28-29 anaesthetic
corruption
Percentage and total of animals raised and/or processed, by species and breed
Percentage of employees trained in organization’s anti-corruption policies and FP11 x
SO3 ü Vision, Mission, Core Values - Code of Conduct 28-29 type, per housing type
procedures
Policies and practices on antibiotic, anti-inflammatory, hormone and/or
SO4 Actions taken in response to incidents of corruption x FP12 x
growth promotion treatments, by species and breed type
Public policy positions and participation in public policy development and
SO5 x Total number of incidents of non-compliance with laws and regulations, and
lobbying
FP13 adherence with voluntary standards related to transportation, handling and x
Total value of financial and in-kind contributions to political parties, slaughter practices for live terrestrial and aquatic animals
SO6 x
politicians, and related institutions by country
Total number of legal actions for anti-competitive behaviour, anti-trust and
SO7 x
monopoly practices and their outcomes
Total number of legal actions for anti-competitive behaviour, anti-trust and
SO8 x
monopoly practices and their outcomes
SUBSIDIARIES
1. VIETNAM DAIRY COW ONE MEMBER 3. LAM SON DAIRY ONE MEMBER 5. DRIFTWOOD DAIRY HOLDING
CO., LTD. CO., LTD. CORPORATION
10 Tan Trao Street, Tan Phu Ward, Le Mon Industrial Park, Thanh Hoa City, 10724 E. Lower Azusa Road, El Monte,
District 7, Ho Chi Minh City Thanh Hoa province California 91731-1390, United States
Tel: (84 8) 54 155 555 Tel: (84 37) 3 912 540 Tel: (626) 444-9591
Fax: (84 8) 54 161 226 Fax: (84 37) 3 912 541 Website: www.driftwooddairy.com
2. INTERNATIONAL REAL ESTATE ONE 4. THONG NHAT THANH HOA DAIRY COW
MEMBER CO., LTD CO., LTD.
10 Tan Trao Street, Tan Phu Ward, Quarter 1, NT Thong Nhat Town, Yen Dinh
District 7, Ho Chi Minh City District, Thanh Hoa Province, Vietnam
Tel: (84 8) 54 155 555 Tel: (84 37) 3 514 020
Fax: (84 8) 54 161 226 Fax: (84 37) 3 599 008
ASSOCIATES
www.vinamilk.com.vn