Minor International Public Company Limited

Following years of prolonged COVID-19 uncertainty, the storm clouds have cleared for many businesses, especially the hospitality operators. Opportunely, we at Minor International used the time to shore up our operational and financial foundations, transforming into a more resilient organization, infusing agility into our DNA, without losing sight of our environmental, social, and governance commitments. Looking ahead, we will continue seizing new opportunities for growth and profitability, while ensuring our operations also create positive impacts to our communities and the environment. We know ongoing disruptions will continue to take place from time to time. We have learned to manage present and emerging risks with agility. Our teams have shifted their mindset to focus on “tomorrow”, which will allow us to deliver sustainable growth in all our key markets around the world.

Looking into the future, climate-related risks are identified as the dominant global risks in the next decade. Minor pledges to minimize the environmental impact from our operations and to advocate biodiversity conservation. We remain committed to reach net-zero value chain GHG emissions by no later than 2050 and are working towards setting group-wide, measurable near-term and long-term science-based targets. In 2021, we have deployed TCFD (Task Force on Climate-related Financial Disclosers) to the enterprise risk management by qualitatively described climate-related risks and opportunities. In 2022, we proceeded to conduct quantitative physical and transition risks assessment to determine their impacts in short, medium, and long term, while taking into consideration different climate scenarios. We have already exceeded our “Planet” goals of reduction in energy, water, and carbon dioxide emission intensities for Minor Hotels operations by over 20% since 2021. Therefore, while we progress on setting science-based targets, we have established short-term goals to further reduce these intensities by using Cornell Hotel Sustainability Benchmarking Index as a guideline. We initiated waste management practices within Minor Hotels and have seen a reduction of organic waste to landfill intensity by over 25%. Furthermore, we are pleased that 94% of nature-based hotels are currently engaged in conservation projects that ensures long-term biodiversity protection. Through our various initiatives globally, 84 IUCN Red List species are protected.

The easing of lockdowns and the return of business activities have enabled us to resume many activities with the aim of elevating sustainable development of the people within our organization and communities. These include initiatives in all 3 tiers of our Human Capital Development Approach: the grassroot communities, our workforce, and talents & leaders, through programs that enhances education, job opportunities, career advancement, health and well-being, and improves the environment. We were able to restart youth educational programs with The Pizza Company’s Book Club, Minor Smart Kids’ children development seminars, and support activities with schools in our communities, as well as many more social responsibility actions. In 2022, we have developed and supported over 478,000 people especially in the areas of education, health and well-being, and crisis response. Minor strongly believes in providing development opportunities for people to cultivate their full potential. The development programs for youth in the communities as well as team members in our organization were carried out both in person and in hybrid models. We trust that this support in career creation and advancement contributes positively to retention at all levels. In 2022, over half of our management level positions were filled with internal candidates. In addition, with our pledge to be a responsible employer by upholding a safe and healthy working environment, we are cognizant of the increased significance of occupational health and safety, and well-being within our organization. Therefore in 2023 we will be introducing a new long-term sustainability goal of “zero annual work-related fatality of employees”.

The portfolio of strong brands and high-value assets that we have will generate value for us in the long term and offer further cross-expansion opportunities. They will also give us access to global talent and broaden our network of partners in both existing and new territories. Furthermore, we commence to integrate our supply chain practices where possible to enhance the stability of our supplies, improve efficiencies, and better manage cost in the challenging economic situation. We recognize that the sustainability of our business is also dependent on the sustainability of our value chain, from our suppliers, business partners, to customers. In times of limited physical movements, we continue to utilize different channels to ensure the continuity of our assessment of critical and high-impact suppliers’ sustainability risks. In 2022 we expanded the audit scope to include suppliers of project development functions and 94% of identified high-risk suppliers were audited with agreed development plans. Staying true to our core value of Partnership, at the 2022 Minor Food’s Franchise Conference, we invited franchise partners to jointly build business ideas, strategy, and brand vision to strengthen our position for sustainable growth under the principle of “Winning the Next Era”. We are driven to deliver exceptional experiences that anticipate and satisfy our customers’ aspirations as well as finding opportunities to positively impact them and our stakeholders. One example is the collaboration between Minor Hotels and Bangkok Dusit Medical Services to launch BDMS Wellness Clinic Retreat at Anantara Riverside Bangkok Resort to address growing demands for preventive measures to improve wellness and longevity with offerings of a wide range of wellness, aesthetic, and health screenings to residents and tourists.

Strong corporate governance and responsible business culture is a foundation to achieving long-term sustainable growth. Our commitment is reflected in the “Excellent” CG Scoring by the Thai Institute of Directors Association for the 10th consecutive year in 2022. We continue to administer annual training and reacknowledgement of Team Members Code of Conduct and Anti-corruption with all employees. We have introduced the Human Rights online training, which was launched in Thailand and will be further adapted to our global operations. We also initiated series of data protection, data privacy, IT and cybersecurity trainings for our team members to emphasize its importance and right practices. Moreover, in 2022 Minor established a team dedicated for cybersecurity for the first time to fortify against everchanging cyber threats.

Minor continues to embrace the concept of shared value creation to ensure true sustainability for our various stakeholders as well as our organization. It is my pleasure to share that throughout these disruptive times, we uphold our high standards, as demonstrated in our inclusion in the Dow Jones Sustainability Emerging Markets Index for the 9th consecutive year, the FTSE4Good Index Series for the 7th consecutive year, and MSCI ESG Rating of AA. We were also awarded “Highly Commended in Sustainability” from the Stock Exchange of Thailand and included in the list of Thailand Sustainability Investment by the Stock Exchange of Thailand for the 8th consecutive year.

I would like to extend my appreciation to all our stakeholders – our employees, customers, shareholders, partners, suppliers, creditors, government, non-profit organizations, and communities – for the support and confidence in the company throughout our journey, especially during the last 3 years of COVID-19. My sincere gratitude is also expressed to every team member’s dedication and hard work in driving and delivering impressive performance in 2022. Stepping into 2023, I look forward to returning to strong and sustainable growth and am very excited for another remarkable year.

William Ellwood Heinecke
Chairman