Visit to Sugar Factories in Thailand in March 2019

In March 2019, a visit was made to the two sugar factories in Thailand that are common suppliers of Marubeni and Marubeni Europe, to inspect the situation on sustainability.

As a result of this survey, no serious breach of Marubeni’s Basic Supply Chain Sustainability Policy was found.

NEW KRUNG THAI SUGAR FACTORY COMPANY LIMITED

General Observance of Laws

• For observing factory operation-related laws, a devoted organization called Safety & Health, Environment Department is set up to grasp and specify applicable laws. Once a month, a dedicated staff checks the compliance status using a checklist.
• Details of the applicable laws are posted on the bulletin board, and also notified to employees through e-mails and postings on the intranet.

Human Rights, Labor Conditions, Wages etc.

• We confirmed that a Development Sustainability Policy including the treatment of employees is established.
• Age verification by an ID card is conducted at the time of employment to prevent labor of children under 18 years of age, as required by the law. We also checked the employee list and confirmed that there are no employees under the age of 18.
• Campaigns to stop child labor at sugar cane farms are held, and the person in charge of procurement checks the situation during farm visits.
• All employees have signed an employment agreement stating the employment conditions such as work hours, wages, overtime payment, and vacations.
• Management of work hours was implemented with the upper limit of eight hours a day, six days a week.
• We confirmed that in addition to paid leave and sick leave, the special leave system is in place.
• A system has been introduced for employees to file complaints to the company on issues such as human rights and labor conditions through an opinion box.

Conservation of the Environment

• Noise from machinery, dust from bagasse (sugar cane waste) storage, and water pollution from waste water drainage are possible environmental impacts that can be caused by factory operation.
• We confirmed that the Development Sustainability Policy that includes consideration for the environment is stipulated.
• The Safety & Health, Environment Department oversees the overall environmental management of the factory including the compliance of the environmental laws.
• Through inspection records, we confirmed that regular checks on the water quality after wastewater treatment, noise, and emission to the atmosphere are conducted, and all legal emission standards have been cleared.
• Regarding wastes such as bagasse, all are reused as fertilizer, feed, or fuel, and none that required waste disposal were generated.
• No hazardous chemicals were handled.

Fair Transactions

• An Anti-Corruption Policy has been devised, and notified through manager meetings, e-mails, and posting to the bulletin board.

Occupational Health and Safety

• We confirmed that a Safety & Health, Environment Policy that includes the occupational safety and health of employees is stipulated.
• The Safety & Health, Environment Department oversees the overall management of occupational safety and health in the factory.
• As for the occupational safety of the employees in the factory, there is a possibility of injury etc. during truck loading, so all employees are supplied with protective equipment such as helmets and safety shoes when they join the company. We also confirmed through records that employee training on occupational safety is conducted.
• First aid kits are placed in each department of the factory. We also confirmed that there is a clinic set up with its own ambulance, ready for emergency transport to nearby hospitals.
• Fire hydrants and extinguishers are installed in several places around the factory, and we confirmed during the visit that periodic inspections are conducted for the fire extinguishers.

Quality Control

• In March 2000, the factory acquired ISO 9001 certification, an international standard for quality management. An appropriate management system is established by the regular update of the certification.

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KAMPANG PETCH SUGAR COMPANY LIMITED

General Observance of Laws

• The factory manager acted as the overall controller for legal compliance, and appropriate measures were taken mainly on environment related laws and occupational safety related laws, such as regular audits and reporting to government authorities.

Human Rights, Labor Conditions, Wages etc.

• Age verification by ID card or passport is conducted at the time of employment to prevent labor of children under 18 years of age, as required by the law.
• Management by time card is introduced to observe the regular working hours of eight hours a day.
• All employees have signed an employment agreement stating the employment conditions, based on the Staff Rules & Regulations.
• The employment conditions have been thoroughly notified through meetings with employees and posting on the bulletin board.
• We confirmed through the wage payment records that wages etc. that are above the legal minimum wage are delivered twice each month on a regular basis.
• We confirmed that in addition to paid leave, sick leave is available in the leave system.
• For issues on labor conditions etc., a system has been introduced for employees to file complaints to the company through the Welfare Committee.

Conservation of the Environment

• Noise from machinery, dust from delivery trucks, and water pollution from waste water drainage are possible environmental impacts that can be caused by factory operation.
• We confirmed that the Safety & Health, Environment Policy that includes consideration for the environment is stipulated.
• The factory received third-party environmental audits twice a year on a regular basis.
• Through inspection records, we confirmed that regular checks on the wastewater quality, emission to the atmosphere, and noise were conducted, and efforts were made to comply with the legal standards.
• No hazardous chemicals were handled.

Occupational Health and Safety

• We confirmed that a Safety & Health, Environment Policy that includes the occupational safety and health of employees is stipulated.
• As for the occupational safety of the employees in the factory, there are possibilities such as falls during work at elevated locations, or injuries from falling sugar sacks, so all employees are supplied with protective equipment such as helmets, ear plugs, and safety shoes. Educational training is also conducted once a year to prevent accidents. Additionally, there is a clinic in the factory stationed full-time with medical personnel to provide first-aid procedures, while a hospital is located within 2 km of the factory with emergency transport available.
• We confirmed that water servers were installed around the factory for the employees.
• At the time of the factory visit, we found some occupational safety concerns related to partial exposure of machinery and the storage situation of vehicle lubricant oil, so Marubeni made requests for improvement. We confirmed through a report from the factory with pictures of the site, that improvement measures were immediately taken.

Quality Control

• In May 2000, the factory acquired ISO 9001 certification, an international standard for quality management. An appropriate management system is established by the regular update of the certification.

 

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Supply Chain