SUSTAINABILITY REPORT 2015 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
2 SUSTAINABILITY REPORT 2015
CONTENT • Message from Chairman • Outstanding Operational Performance in 2015 • Sustainability Awards in 2015 • Corporate Information • Envisioning Sustainability • Mission 2016
SUSTAINABLE POLICY • Corporate Governance Principle and Responsibility • Anti-Corruption Action • Supply Chain Management • LPN and Sustainable Development • 10 LPN Value Chain • Important Issues in Relation to Stakeholders • Stakeholder Engagement • Sustainable Development Goals • LPN Sustainable Strategy
IN PROCESS • • • • • •
GREEN ENTERPRISE GREEN DESIGN CONCEPT GREEN FINANCIAL MANAGEMENT GREEN MARKETING MANAGEMENT GREEN CONSTRUCTION MANAGEMENT GREEN COMMUNITY MANAGEMENT
3 4 5 6 8 9
OUT PROCESS
10 12 13 14 16 20 24 26 28 32
33 34 50 58 64 76 96
• Environmental and Social Activities of the Company • Environmental and Social Activities of Lumpini Volunteer Clubs
AS PROCESS
110 111 114
116
• L.P.N. ACADEMY • SOCIAL ENTERPRISE
117 126
• • • •
134 140 145 150
Innovation for Sustainability Staff Information Report Preparation Guideline GRI INDEX
3 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Message from Chairman (G4-1)
Since the establishment of the Company in 1989, L.P.N. Development Public Co., Ltd. has always stressed the importance of all stakeholders. The Balanced Scorecard principles are applied in the strategic planning and management system to give a more balanced view of organizational performance. The concept of sustainability in the business operation has continuously been developed throughout the years. At present, the business of the Company is operated in accordance with Triple Bottom Line that balances profitability with the needs of the environment and society. 6 GREEN LPN strategy has recently been developed as the strategy towards sustainability. It is believed that the Company will be able to achieve growth as well as showcase the responsibility towards all groups of stakeholders at the same time. In spite of the slowdown in the real estate market as a consequence of current economic situation, the Company is able to achieve the operational target with the collaboration from the executives, staff and business alliances. All through 26 years of our operation, the Company as a leader in residential condominium development for the customers in the middle to low income group under “Lumpini” brand realizes that direct environmental and social impacts are inevitable in the development of large-scale real estate projects. It is thus ensured that all operational processes are strictly controlled and the organization and human capital is managed to enhance the sustainability of the business operation. As a result of such commitment, the Company is awarded five sustainability awards as follows:
• • • • •
ESG 100 Certificate (Environment, Social and Governance) from Thaipat Institute as one of a hundred outstanding companies in terms of environment, society and governance. SET Social Enterprise Investment Awards from the Stock Exchange of Thailand. Thailand Sustainability Investment (THSI) Award from the Stock Exchange of Thailand. Excellent Corporate Governance Award (Level 5) from the Securities and Exchange Commission and Thai Institute of Directors Recognition Award from Sustainability Report Awards 2015 from Thai Listed Companies Association.
Furthermore, the Company has declared the intention to join the Private Sector Collective Action Coalition Against Corruption. This year, the policy on corruption risk assessment is established, implemented, communicated to staff and reviewed. The goal is to prepare for Level 4 Certification to build confidence of external parties. The above achievements are the pride of the executives and all staff. They also reflect our commitment to continue the business operation in a careful and transparent manner based on good corporate governance. I would like to thank the executives, staff, business alliances and everyone involved for your collaboration in enhancing the values of the organization. Your collaboration will drive the Company towards sustainability, high-quality environment and society as well as sustainable growth for the Company and all stakeholders.
(Amornsuk Noparumpa) Chairman
4 SUSTAINABILITY REPORT 2015
Outstanding Operational Performance in 2015 (G4-1)
Values 3P
6G
8S
The Company joins the “Philanthropic Investments”
10P
initiative of Thaipat Institute together with five other listed companies. The profits generated will be used to support social enterprises.
The sustainability formula of 3-6-8-10 i.e. 3Ps, 6 GREEN LPN, 8 Stakeholders and 10 Processes is established as an operational guideline for all departments.
The Company receives
5 sustainability awards in 2015.
The total of There are
CMTC Training Course has been organized to build the capacity of
229
Community Managers.
The Company helps create jobs for the total of
1,200 underprivileged women.
NPS in 2015
= 44%
419 27 families
Vibrant Community Models
are offered the opportunity of owning their very first home through
(28 condominium juristic persons) developed.
Baan Sarn Fun Project.
The Company manages 116 communities, comprising 106,400 families and 187,200 community members. The total space managed is 5,925,000 sq.m.
There are
The score of staff’s relationship
2 Signature Green Project developed.
with the organization is
(G4-EN27)
= 64% Finance The gross income is
The net profit is
16,673.64
2,413.40
million THB.
million THB.
29%
The dividend paid is
Condominium
The total of
0.90*
7
4
THB *pending approval.
projects are handed over.
The growth of the Company is
projects is launched.
5 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Sustainability Awards in 2015 (G4-1)
The Company is ranked by the Thai Institute of Directors as a company with excellent corporate governance (Level 5). The Company is awarded the SET Social Enterprise Investment Awards from the Stock Exchange of Thailand. The Company is one of the 51 listed companies whose stocks are included in the “Thailand Sustainability Investment” (THSI) list by the Stock Exchange of Thailand. The Company is included in the ESG100 list of outstanding companies in terms of environment, society and governance by Thaipat Institute. The Company’s Sustainable Development Report 2015 is awarded the Recognition Award from Thai Listed Companies Association.
6 SUSTAINABILITY REPORT 2015
Corporate Information (G4-3, 5, 6)
L.P.N. Development Public Co., Ltd. Residential Condominium Developer Head Office 1168/109, 36th Floor, Lumpini Tower, Rama 4 Road, Thungmahamek sub-district, Sathorn, Bangkok 10120 Registration Date: 21 June 1989 Registered Capital: 1,475,698,768 THB
Subsidiary Companies (G4-17)
Lumpini Property Management Co., Ltd. Provider of community management services
Lumpini Project Management Service Co., Ltd. Provider of construction management services
Pornsanti Co., Ltd. Property developer (non-condominium projects)
Lumpini Property Service and Care Co., Ltd. Provider of community services
7 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
LPN WAY (G4-56)
LPN Way comprises two milestone values i.e. “continuous development” and “respect for stakeholders”. The seven components of the values are “CLASSIC” which is integrated into the operation of the Company and is adhered to by all segments of the Company. It has been developed into the organization values (LPN Values) and LPN Way with an aim to achieve the goal of the operation both in terms of quality and quantity and to drive the Company towards “sustainable development and growth”.
CLASSIC (Core Competency)
COST WITH QUALITY
CORPORATE VALUES
LATERAL THINKING CONTINUOUS DEVELOPMENT
ALLIANCE SPEED WITH QUALITY
LPN WAY
SERVICE MINDED RESPECT FOR STAKEHOLDERS
INTEGRITY COLLABORATION
8 SUSTAINABILITY REPORT 2015
Envisioning Sustainability The vision of the Company is established in accordance with sufficiency economy and sustainable development principles, both of which are at the heart of the operation of the organization since the very beginning. 2014 marks the first year of the operation under the new vision which is revised every three years. The policy and operational framework is established to achieve sustainable development as follows:
Vision 2014 - 2016 To maintain the leadership position in the development of residential condominium targeting middle to lower-middle income group under the “Vibrant Community” and “Value Organization” concept for sustainable development and growth.
Vision 2002 - 2013 2002 - 2004
2005 - 2007
2008 - 2010
2011 - 2013
To become the market leader in the residential condominium for middle to lower-middle target segment.
To maintain leadership in the market while enhancing the efficiency by developing residential condominiums in an integrated manner for the creation of high quality communities.
To commit to maintain the leadership in the residential condominium development market by creating an integrated value to develop suitable quality of life and ensure satisfaction of the residents in the communities while also sustaining a reward for shareholders and stakeholders under good corporate governance principle.
To become the leader in the development of urban residence by creating and delivering integrated values to all stakeholders in order to achieve the development and sustainable growth.
Vibrant Community For All “Vibrant Community For All” is Lumpini Community in which the residents of all age groups live happily together with appropriate components, great quality of life, society, environment and awareness of togetherness, care and share culture.
Value Organization The organization that has been developed in an integrated fashion in the operation of all departments in order to deliver the value to stakeholders, society and environment.
9 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Mission 2016 (G4-24)
Customers: Provide the opportunity of owning the first home at the affordable price and deliver product and service values to customers as well as manage customer’s experiences to create trust in “Lumpini” brand.
Shareholders: Achieve proper growth to provide sustainable return under risk management and good governance principle.
Environment and Society: Promote and take part in corporate social and environmental responsibilities with in process, out process and as process activities to achieve sustainable development.
Business Alliances:
Residents:
Create unity under care and share culture and achieve mutual growth with appropriate returns.
Create and deliver “vibrant community” to customers that will lead to the real pleasure of living for all.
Construction Workers: Enhance the quality of life, safety and occupational health of the construction workers by supporting the operation of the business alliances and organization of activities.
Staff: Enhance quality of life, knowledge, competency, integrity and relationship for happiness, engagement, career growth and stability through L.P.N Way and L.P.N Academy under the care and share culture of “Value Organization”.
Neighboring Communities: Take responsibility for the impacts of the operation and promote participation and good relationship with the Company.
10 SUSTAINABILITY REPORT 2015
1 SUSTAINABLE POLICY
P.16 P.20 P.24 P.26 P.28
Sustainable Policy 10 LPN Values Important Issues in Relation to Stakeholders Stakeholder Engagement Sustainable Development Goals
11 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Sustainable Policy The philosophy of sustainable development has been compiled and refined into an internal knowledge of the organization as well as become the practice that all departments adhere to. It will be the foundation that mobilizes the organization at the policy, strategic and operational levels.
Strategy
Policy
Operation
Foundation of Sustainable Development Based on Sufficiency Economy Philosophy Since the establishment of the Company, it has been operating the business in a responsible and fair manner by ensuring the balance of benefits for all related parties. The stability of the Company is achieved from internal management process along with the development of human resources. After the economic crisis in 1997, the Company focuses on the development of projects in accordance with the strategy of the organization and overall economic situation. The Company has attempted to maintain appropriate growth of the organization. In addition, the business operation of the Company has been conducted in accordance with the “sufficiency economy philosophy” of H. M. King Bhumibol as follows:
3 principles 1. Moderation
Knowledge
Achieve appropriate growth rate with the focus on the development of in-house personnel. Create sufficient profit from business operation by not exploiting or taking advantage of customers or society. Consider the impacts of the business operation in all dimensions.
2 Reasonableness
1
3
Moderation
SelfImmunity
Ethics
2. Reasonableness
Develop residences for the middle to lower-middle target group. Focus on the quality of life of the residents with the “Vibrant Community” concept. Create a balance of benefits for all stakeholders involved. 3. Self-Immunity
Emphasize human resources development. Establish strategies that are suitable for all economic situations. Focus on risk management.
2 conditions 1. Knowledge
2. Integrity
Strive to be a learning organization and encourage knowledge Identify “integrity” as one of the significant corporate values of sharing. L.P.N Academy is the main responsible party. the organization leading to good corporate governance.
12 SUSTAINABILITY REPORT 2015
Corporate Governance Principle and Responsibility (G4-56) Corporate governance principle is the system of rules, practices and management processes by which a company is directed, including morality, integrity, ethics and favorable behaviors such as the operation that is transparent, auditable and independent. At present, the principle of corporate governance is widely applied in the management of an organization to build and promote its capacity and efficiency. It also helps build faith and trust in the organization which entail continuous development.
Risk Management (G4-2) All aspects of risks are managed and controlled. The stakeholders are crucial for the business growth and thus are taken into account while managing risks for long-term benefits both at present and in the future. The rate of remuneration is decided based on the competitive situation and performance of the Company. Risks are reduced by reserving cash to maintain the liquidity of the Company.
20 Miles March Philosophy Constant pacing is one of the practices of the Company to ensure that we will not stop stepping forward by maintaining a constant pace both in time of difficulties or opportunities to create sustainable growth. The 20 Miles March philosophy which focuses on constant pacing is applied in the establishment of the growth and development target of all the departments and operational processes of the Company to ensure that the results are assessable and regularly improved.
Sustainable growth of the Company is based on sufficiency, stability and careful risk management. The development of knowledge is emphasized to increase the efficiency of the operation and capacity of staff as well as to build unity with business alliances as it has always been done throughout the years of the operation of the Company.
13 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Anti-Corruption Action (G4-SO4) As a property developer that must involve with various government agencies, the Company has established an anti-corruption policy indicating that all processes of the operation must be strictly in compliance with law. Compliance Risk is also included in the business plan. Transactions done with the government have regularly been monitored. Furthermore, it is required that all staff are to strictly abide by the regulations, Code of Conduct and anti-corruption policy of the Company in order to enhance the responsibility and integrity of the organization. Integrity is identified as one of the core values of staff. All staff must be informed of anti-corruption practices and trained about core values of the organization in the orientation session for new staff.
Assessment of Compliance with Anti-Corruption Policy The Company has encouraged staff to conform to anti-corruption policy through various means such as trainings for all levels of staff and orientation for new staff. After being trained, the knowledge of staff will be tested. In addition, the Company has evaluated the performance of staff, assessed corruption risks and revised anti-corruption measures on a regular basis. The policy has continuously been communicated to various groups of stakeholders to prevent an internal misconduct. It is indicated in the anti-corruption policy that all staff must not ignore or neglect any corruption conditions involved directly with the Company. The anti-corruption guideline is disseminated to all staff to minimize the opportunity for corruption. Staff can notify the act of corruption or misconduct to the Company through various complaint channels.
Corruption Risk Assessment The process of corruption risk assessment of all departments is as follows: 1. Risk Assessment and Reporting: All departments in the organization will assess risk in their department once every quarter. The information shall be compiled and presented to the Risk Assessment Committee for consideration. 2. Risk Management: The Risk Assessment Committee will assess, analyze and prioritize risks. The risk management guideline and strategy will be identified and proposed to the Audit Committee and the Board of Directors at least once a year. 3. Communication: Risk management guideline will be communicated to all departments for compliance and implementation.
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Supply Chain Management Getting through the economic crisis in 1997 does not only help develop the identity and values of the organization but such difficult experiences have also urged the Company to give importance to sustainable growth in parallel with risk management, both of which are key to the operation of all departments. The supply chain of the Company has also been strengthened. As a result of the collaboration during tough times, the “trade partners” of the Company have become our “business alliances” who support the operation of each other and trust each other. The relationship has been developed further and they have finally become “LPN Team” and share common development goal with the Company. From more than 20 years of collaboration, the operation of the Company and “LPN Team” has been merged into one. All the operational processes are performed to achieve the ultimate goal of supply chain management of the organization which is to achieve mutual development and growth.
The supply chain management process of the Company is as follows:
GE
C ME
NT
ENG
A
SS ASSE
IMP
LE
MUNICATE COM
MEASU RE MUNICATE OM
COMMIT
1. Identify annual operational goal. After the business plan is finalized, the meeting among high-ranking executives of more than 30 companies in the LPN Team will be organized for them to discuss the work plan and collaboration in order to achieve the expected outcomes of that year. 2. Identify any challenges of working together and develop a risk management plan. 3. Encourage participation of each party in the development of each project. 4 Operate in accordance with the established work plan. 5. Organize a monthly meeting to follow-up the work, assess the performance and analyze problems to improve or adjust the operational plan as appropriate. This will help increase the efficiency of the operation in the supply chain.
Furthermore, the Company and LPN Team will communicate with each other in a two-way manner via WhatsApp so that all participated parties are able to share ideas and learning to generate utmost operational efficiency.
15 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
The development and training of LPN Team
Supply chain risk management (G4-EN33)
Knowledge sharing and transfer both in terms of the operation and organization management is another method used to facilitate mutual and sustainable growth of the Company and LPN Team. Trainings, seminars and study tour are thus organized by L.P.N. Academy to build capacity and knowledge of LPN Team. In addition, LPN Team is encouraged to come up with new innovations to enhance the implementation of Q-C-S-E-S+P strategy. The innovation competition has been organized annually for the fifth consecutive year. In 2015, the total of 11 innovations in construction are submitted.
When establishing the operational target, risks must be taken into consideration and discussed with LPN Team as some companies may not have the capacity to achieve the operational target. The communication between LPN Team and the Company and among members of LPN Team themselves is also crucial. It ensures that the business is operated in the same direction and that the supply chain is efficient. Moreover, the society nowadays has become more aware of environmental impacts from project development. The reputation of the Company could be destroyed as a result of the operation of LPN Team. Therefore, the Company, as a client, has cascaded the concept of environmental and social responsibility to LPN Team to raise awareness and encourage their participation in environmentally and socially responsible operation. The operational standard of both project design and project management is established, implemented and closely monitored.
LPN organizes an innovation competition in collaboration with LPN Team to seek ways to improve the implementation of Q-C-S-E-S+P strategy.
16 SUSTAINABILITY REPORT 2015
LPN and Sustainable Development
SUSTAINABLE DEVELOPMENT 8S
CUSTOMERS
SHAREHOLDERS
TAKEHOLDERS 8 S
6G REEN LPN 6G
STAFF MARKETING MANAGEMENT
LABORS FINANCIAL MANAGEMENT
PROFIT ECONOMY
3P TRIPLE
ENTERPRISE
PEOPLE SOCIETY
SUPPLY CHAIN
BOTTOM LINE
CONSTRUCTION PROCESS
PLANET ENVIRONMENT
NEIGHBORS บร�หารชุมชน
COMMUNITY MANAGEMENT
RESIDENTS
DESIGN CONCEPT
ENVIRONMENT
17 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
PROFIT ECONOMY
3P PEOPLE SOCIETY
TRIPLE BOTTOM LINE
PLANET ENVIRONMENT
Triple Bottom Line framework, a measure of sustainability that includes financial, social and environmental performance measures, has been applied in the establishment of the operational goal of the Company. “6 GREEN LPN� strategy showcases the responsibility towards eight groups of stakeholders from ten property development processes in order to maintain the balance of the business operation and enhance stable growth. The ultimate goals of the three elements of our business operation are as follows:
PROFIT
PEOPLE
PLANET
ECONOMY
SOCIETY
ENVIRONMENT
The objective of the Company is to create the balance of adequate and regular profits from the operation on the basis of good corporate governance, responsibility and transparency in business operation and the consideration for profit-sharing with all stakeholders.
The Company has always been aware that high-quality and safe society is essential to business growth. The social responsibility of the Company is thus not limited to just internal personnel but also extended to external parties including trade partners, customers, residents and neighboring communities, construction workers as well as the national society at large.
The operation of the Company as a real estate developer has impacts on the society and environment on various aspects. The Company, therefore, focuses on reducing the impacts of the development of the project during the development process (in process) in terms of the project design and construction and takes care of the environment and quality of life of the residents and neighboring communities after the handover of the project.
18 SUSTAINABILITY REPORT 2015
6G
6 GREEN LPN All through the 26 years, the business operation of the Company has always been done in a socially and environmentally responsible manner in all processes. “6 GREEN LPN” concept is developed from our extensive experiences in property development and community management as a practice to ensure a balanced and sustainable operation for the benefit of all stakeholders. At present, 6 GREEN LPN concept is inclusive of six aspects of environmental and social responsibility as follows:
1
2
3
DESIGN CONCEPT
ENTERPRISE
FINANCIAL MANAGEMENT
Green Enterprise
Green Design Concept
Green Financial Management
The business operation that focuses on human resources management and human capital.
The product design that is environmentally responsible.
The appropriate returns and growth of the organization.
4
5
6 บร�หารชุมชน
MARKETING MANAGEMENT
CONSTRUCTION PROCESS
COMMUNITY MANAGEMENT
Green Marketing Management
Green Construction Process
Green Community Management
The marketing strategy that is fair for the consumers and competitors.
The management of environmental and social impacts from construction process.
The care for and management of the quality of life of the residents after the handover of the project.
19 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
8S
8 STAKEHOLDERS
(G4-25)
The Company identifies the first tier stakeholders involved in various operational processes based on the assessment of the level of involvement of each group of stakeholder. The level of involvement of the stakeholders is assessed by the level of influence they have on the organization and operation along with the level of impacts from the operation of the Company in order to be able to identify the importance of each stakeholder and establish a strategy to encourage their participation. The operational framework is established and the impacts on all stakeholders are minimized to enhance sustainable development and growth. The first tier stakeholders of the Company is categorized into eight groups as follows:
1
2
3
4
Shareholders
Employees
Customers
LPN Team
refer to shareholders of the Company, whether they be companies, funds or individuals who are benefited from the operation that emphasizes good corporate governance and environmental and social responsibility.
refer to those who are working for the Company and driving the operation of the Company to move forward in a sustainable manner, inclusive of staff in the operational level and managerial level.
refer to those who are interested in the project developed by the Company and have reserved to buy and made a down payment. In the future, when the project is completed, the customers will become residents.
refers to trade partners or business alliances of the Company who take part in the design and construction of projects as if they are one of the staff of the Company. The objective is to achieve the mutual goal.
5
6
Neighbors
Residents
refer to those who live in the communities surrounding the projects of the Company that are under construction and are affected by the impacts from the start of the project development through to after the project is being handed over.
refer to those who live in the project of the Company that has been handed over as customers or renters and are parts of the community taken care of by the Company.
7
Construction Workers refer to workers of LPN Team (business alliances) that are responsible for constructing the projects of the Company, inclusive of Thai and migrant workers.
8
Environment refers to the components of sustainability that is at the foundation of all business operations. The operation of real estate development business directly impacts the environment, therefore, the Company focuses on the conservation of environment nearby the project.
20 SUSTAINABILITY REPORT 2015
10 PROCESSES
10P 10 LPN Value Chain
(G4-12)
1
2
Project Location
Land Purchase
Value Organization
Employees
Executives
9 10
Moving In
Green Community Management
FBLES+P Juristic persons Residents
Security guards บร�หารชุมชน
Housekeepers
Vibrant Community
21 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
4 Green Design Concept
Green Financial Management
EIA APPROVED
Government sector
Architect
Shareholders
5 Green Marketing Management
6 Customers’ Experience Management
8 Handover of Condominium Units
Customers
7 Green Construction Management
LPN Team
SAFETY FIRST
Construction workers
Neighbors
22 SUSTAINABILITY REPORT 2015
10 PROCESSES
10P 10 LPN Value Chain The Company does not only aspire to be a “Value Organization” that gives importance on organizational management and human capital but also to take responsibility towards all stakeholders in all operational processes. Usually, the responsibility of a real estate developer comes to an end after the product or condominium units are handed over to customers. However, the Company realizes how significant it is to ensure that the quality of life of the residents of the projects developed by the Company is enhanced and taken care of as they have trust in Lumpini brand and decide to make our condominium unit their “home”. This is the beginning of the development of “Vibrant Community” concept which is an after-sale service offered both in terms of building management and community management. The concept has been implemented for more than 20 years. The responsibility towards all stakeholders of the Company has started from the policy level within the organization through to the ten core processes of the property development of the Company as follows:
2
Land Purchase
The decision made by the Management to buy a piece of land is based on the vision as well as information from the Research and Development Department and Marketing Department. The demand, supply and feasibility for project development are carefully studied beforehand in order to ensure that the project development is in accordance with the strategy of the organization and customers’ needs.
3
Green Design Concept
1
Project Location
The development concept is designed to be appropriate with the project location. The two concepts for project development are pilot project i.e. project development in new locations with minimum competition (Blue Ocean Strategy) and expanded project i.e. project development in highly successful locations where demands for residential property are high.
4
Green Financial Management
DESIGN CONCEPT
FINANCIAL MANAGEMENT
Projects are designed in accordance with LPN Green Standard Checklist which is developed by the Company and is consistent with Green Building Standard of the U.S.’s LEED Program (The Leadership in Energy and Environment Design). The impacts on stakeholders are considered in a well-rounded fashion.
The business growth and returns for stakeholders are identified in line with the annual business plan. The construction costs and profit of each individual project is appropriately prepared. The financial statements are accurate and reliable and are prepared in a transparent and auditable manner without any hidden agendas. In addition, financial risks have always been managed.
23 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
5
Green Marketing Management
6
Customers’ Experience Management
MARKETING MANAGEMENT
The marketing activity of the Company is “Customer Centric” or directly focuses on the needs of the customers. The policy of the Company is to build the first home for those who do not yet own a house. It is to give something back to the society. Furthermore, the Company respects the rights of customers and keeps our promise.
8
Handover of Condominium Units
7
Green Construction Management
CONSTRUCTION PROCESS
The trust in brand is key to the management of customers’ experiences. Every touch point is operated with high standard. Various communication channels are available for customers to send feedback to the Company for improvement of services.
9
Moving In
Project construction is the process that impacts the environment and society the most. The business operators should take responsibility in minimizing such impacts. The Company has initiated Q-C-S-E-S+P project management strategy as an operational standard for all those involved in the project construction process.
10
Green Community Management
บร�หารชุมชน
COMMUNITY MANAGEMENT
The quality of condominium units and common area is ensured before the condominium units are handed over to customers in order to create a safe and fully-equipped “Vibrant Community.” Ownership transfer services are also provided to customers for their convenience.
It is important that the residents fully understand the rules and regulations of the condominium. Prior to moving in, the community management policy and direction of the Company is communicated to the residents in order to enhance peaceful co-existence in the community.
“Vibrant Community Strategy” is one of the core strategies of the organization. The Company does not only manage the building but also the quality of life, society and environment and promote “togetherness, care and share” culture.
24 SUSTAINABILITY REPORT 2015
Important Issues in Relation to Stakeholders (G4-19) PROFIT
GREEN ENTERPRISE
PEOPLE
Shareholders
LPN Team
• Sustainable Development • Corporate Governance and Risk Management • Anti-Corruption • Support for “Social Enterprise”
• Mutual Growth and Development • One LPN • Appropriate Returns • Supply Chain Management
Staff • Corporate Values • Vibrant Organization • Learning & Growth Organization • Work-Life Balance
• Appropriate Growth and Profits • Transparent and Auditable Financial Statement • Financial Discipline • Regular Communication of Operational Performance • Appropriate Distribution of Budget to All Stakeholders • Customer Experience Management • Affordable Price • Creative Advertisement without Hidden Agenda or Attacking Competitors • Satisfaction and Complaint Management
GREEN MARKETING MANAGEMENT
GREEN CONSTRUCTION MANAGEMENT GREEN COMMUNITY MANAGEMENT CESR ACTIVITIES FROM CORPORATE ESR TO COMMUNITY ESR
SOCIAL ENTERPRISE
L.P.N. ACADEMY
• Affordable House
• Strategic Location • Adding Values to Products via Convenient Facilities in Projects
GREEN DESIGN CONCEPT
GREEN FINANCIAL MANAGEMENT
Customers
• Knowledge Sharing with Staff of LPN Team for Mutual Development and Growth
• Enhancing the Real Pleasure of Working • Promotion of Education for Career Growth • Capacity Building of Staff in Line with L.P.N. Way in Response to the Business Growth
25 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
PEOPLE Workers
Neighbors
Environment • Responsibility Towards Environmental Impacts from Product and Service Process
• Product Development Based on Behavior and Lifestyle
• Environmentally Friendly Building Design in Line with Green Standard Checklist • Appropriate Use of Resources and Materials
• Responsibility Towards Impacts from Construction • Development and Improvement of Environment and Infrastructure of Surrounding Communities
• Reduction of Impacts from Construction in Line with Green Standard Checklist
IN PR O CE SS
• Consideration for Impacts from Design
• Customer Experience Management • Condominium Unit Quality Guarantee • Satisfaction and Complaint Management
• Delivery of Good Quality of Life via Community Management under “Vibrant Community For All” Strategy • Promotion of “Togetherness, Care and Share” Culture and Building of Volunteer Network e.g. Blood Donation Activity • Encouraging Participation of Residents in Lumpini Community by Supporting the Organization of Environmental and Social Activities of Lumpini Volunteer Clubs
• Management of Environment in the Community via Green Clean Lean Activities
OUT PR O CE SS
• Safety and Occupational Health of Construction Workers and Related Parties • Quality of Life and Hygiene of Construction Workers • Fair Wage
AS PR O CE SS
Residents
PLANET
26 SUSTAINABILITY REPORT 2015
Stakeholder Engagement (G4-26, 27) Stakeholders
General Issues
Special Issues
• Optimized profit and growth • Risk management • Corporate governance
• Generation of optimized profit and growth • Environmental and social responsibility • Balance of returns for all stakeholders • Adherence to corporate governance principles • Risk management • Anti-corruption • Respect for shareholders’ right • Implementation of 6 GREEN LPN policy for sustainable development
• Balance of profit • Mutual growth and development
• Working in unison • Collaboration in business planning process • Knowledge sharing • Support for organization development • Passing on environmental and social responsibility awareness
• Work-Life Balance • Learning and growing • Happiness at work • Corporate value
• Promoting Work-Life Balance • Learning and growing in the organization • Vibrant organization • Core competencies to organization values • Appropriate remuneration and welfare • Equality and basic rights
• Trust in brand • Product value • Consumers’ right • Satisfaction management • Affordable house
• Affordable house • Product and service values • Management of customers’ satisfaction and complaints • Respect for consumers’ right • Fair price
• Promoting participation • Product value • Service value - Vibrant Community • Consumers’ right • Satisfaction management
• Product and service values • Management of customers’ satisfaction and complaints • Respect for consumers’ right • Togetherness, care and share culture • Participation in CESR activities • Promoting learning among youths living in the project • Opportunity for the community to identify the guideline for community management
• Responsibility • Reduction of impacts in process out process and as process
• Reduction of impacts from construction • Waste segregation campaign in communities • Energy conservation promotion • Management of efficient use of resources • Project design for sustainability • CESR awareness raising in communities • Creation of jobs and good quality of life for underprivileged women • Knowledge sharing with external organizations via L.P.N. Academy
Workers
• Safety • Quality of life of construction workers
• Safety at work • Quality of life and sanitation of the living quarter • Basic rights and wages • Equal treatment
Neighbors
• Reduction of impacts from construction • Relationship building
• Prevention of construction noises, dust and impacts • Accepting suggestions • Compliance with Environment Impact Assessment Report • Project design that takes sustainability of the area into account
Shareholders
LPN Team
Staff
Customers
Resident
Environment and Society
27 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Means of Promoting Participation
Frequency
• Annual Report and Sustainability Report • Annual General Meeting of Shareholders • Newsletter • Project visits • Meeting with analysts • Meeting with investors and fund managers • Project progress report
Annually Annually Quarterly Annually Quarterly Regularly Regularly
• Business alliances meeting • Training and knowledge sharing sessions • Relationship building activities
Monthly Monthly Quarterly
• Assessment of happiness at work • L.P.N. Academy • Activities to promote participation • Staff relations team • Performance evaluation • Intranet and email • Knowledge sharing by executives • Welfare Committee • WhatsApp
Quarterly Regularly Regularly Ad-hoc Every six months Regularly Regularly Ad-hoc Daily
• Annual General Meeting of Joint Owners • Mobile App • Call Center • Various activities • Satisfaction survey • Lumpini Family Day • Seminar of Juristic Person Committee • Touch Point • Management of customer’s experience • Market research • www.lpn.co.th
Annually Regularly Daily Ad-hoc Regularly Annually Annually Regularly Regularly Regularly Regularly
• 6 GREEN LPN • LPN Green Signature Project • QCSES+P
Regularly Ad-hoc Regularly
• QCSES+P • Activities to promote quality of life • Medical check-up
Daily Ad-hoc Annually
• Public hearing • Visit, meeting, discussion • Increase of green space • Improvement of the area • Project design that takes sustainability of the area into account • Complaint box
Ad-hoc Daily Regularly Regularly Regularly Weekly
28 SUSTAINABILITY REPORT 2015
Sustainable Development Goals
In order to ensure that the operation of all departments is driven toward sustainable development, the Company has been establishing the vision for the business operation for more than 15 years. Appropriate growth of the Company has been identified in the vision to develop and drive the organization forward. The business plan as well as a short-term goal are also established annually both in terms of value and profits to be in accordance with the mission towards all stakeholders. Also, it is to create the balance of profits, deliver the operational values to the customers and take responsibility for the environmental and social impacts as a result of the project development. At present, the business of the Company is operated in consisten with the fifth cycle of the vision which is the second cycle focusing on sustainable development. At the end of 2015, the United Nations has announced the United Nations Sustainable Development Goals (UNSDGs) at the 70th session of the UN General Assembly. The proposal contains 17 goals addressing the economic, environmental and social dimensions of sustainable development to be achieved over the period of the next 15 years. The Company, as a private organization, has adapted such goals to be in accordance with the policy and strategy of the organization and established long-term goals towards 6 GREEN LPN - Sustainable Development Strategy as follows:
29 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
1 NO POVERTY
2 ZERO HUNGER
HEALTH 3 GOOD 4 QUALITY AND WELL-BEING EDUCATION
5 GENDER
WATER 6 CLEAN AND SANITATION
7 AFFORDABLE AND CLEAN
WORK 8 DECENT AND ECONOMIC
HEALTH 10 QUALITY 9 GOOD AND WELL-BEING EDUCATION
11 SUSTAINABLE CITIES AND
12 RESPONSIBLE CONSUMPTION
ENERGY
GROWTH
13 CLIMATE ACTION
15 LIFE ON LAND 14 LIFE BELOW WATER
COMMUNITIES
AND PRODUCTION
JUSTICE 16 PEACE, 17 PARTNERSHIPA FOR THE GOALS AND STRONG INSTITUTIONS
Goal 1
Goal 11
No Poverty
Sustainable Cities and Communities
Goal 3
Goal 12
Good Health and Well-Being
Responsible Consumption and Production
Goal 6
Goal 13
Clean Water and Sanitation
Climate Action
Goal 8
Decent Work and Economic Growth
30 SUSTAINABILITY REPORT 2015
Dimension
Long-Term Goal: 2027
6 GREEN LPN GREEN ENTERPRISE
1 NO POVERTY
WORK 8 DECENT AND ECONOMIC GROWTH
GREEN FINANCIAL MANAGEMENT
PROFIT
HEALTH 3 GOOD AND WELL-BEING
PEOPLE
WATER 6 CLEAN 11 SUSTAINABLE CITIES AND AND SANITATION COMMUNITIES
WATER 6 CLEAN AND SANITATION
PLANET
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
13 CLIMATE ACTION
GREEN MARKETING MANAGEMENT
GREEN COMMUNITY MANAGEMENT
GREEN DESIGN CONCEPT
GREEN CONSTRUCTION MANAGEMENT
31 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Mid-Term Goal: 2019
Goal 2016
• Certified level 4 of anti-corruption movement. • Create jobs and upgrade the quality of life and dignity of underprivileged women by supporting the operation of “social enterprise.”
Increase employment opportunity for underprivileged women
Relationship of staff with the organization
• Establish appropriate operational target and profit growth in all subsidiary companies.
Income and sales volume growth
Gross profit
• Develop the standard of product and service in line with “Vibrant Communit For All” concept. • Create an opportunity of owning the first home for people with low income.
• Develop Vibrant Township model under FBLES+P strategy. • Promote the cuture of “togetherness, care and share” in Lumpini communities.
• Develop BIM to be used in the development of all projects. • Implement Green Design Standard Checklist in all projects.
• Implement Green Construction Standard Checklist in all projects.
Six factors of happiness in the vibrant organization
Happiness at work of community management staff
≥ 10% ≥ 67% ≥ 80% ≥ 90% ≥ 10% ≥ 30% No. of communities which the common areas are improved to meet the standard of “Vibrant Community For All”
≥ 10%
No. of complaints on the defects of touch points have reduced
Satisfaction of product
≥ 50% ≥ 90% = 100 units
No. of Vibrant Community model that pass the quality assessment criteria
Satisfaction of joint owners in community management
No. of communities that the quality of wastewater does not meet the standard criteria
= 100%
≥ 85% = 0
Satisfaction of product
No. of new projects developed with the Signature Green Project concept
≥ 85%
Compliance with Green Standard Checklist in all projects
≥ 80%
No. of condominium units in Baan Sarn Fun Project
=2
No. of fatal accidents in the project
=0
No. of complaints from neighboring community that must involve high-ranking executives
=0
32 SUSTAINABILITY REPORT 2015
LPN Sustainable Strategy The operation of property development business directly impacts the environment and society especially the development of large-scale projects. It can be seen that low quality properties usually cause serious environmental and social problems. The Company has thus given importance on business operation that is environmentally and socially responsible as well as incorporated the corporate environmental and social responsibility (CESR) into the business plan in order to pave the way towards sustainability. We do not only focus on CESR In Process along the thinking of “6 GREEN LPN” but also on CESR Out Process by supporting activities that promote “togetherness, care and share” culture. The awareness on responsibility is raised among staff in all departments and cascaded to the residents of “Lumpini” community following the concept of “Corporate Environmental and Social Responsibility to Community Environmental and Social Responsibility”. A budget that is proportional to the sales volume of the Company is set aside to support the activities on this matter. Moreover, the Company has established organizations, the operation of which is separated from the core business operation of the Company but is partly related to the business processes. The purpose of the organizations is not to seek profits but to support the society. This is considered CESR As Process. The two organizations are L.P.N. Academy, the center for human resources development and knowledge sharing and Lumpini Property Service and Care Co., Ltd., the center for the development of quality of life of underprivileged women.
Components in the Operation of the Corporate Environmental and Social Responsibility of the Company 1. CESR In Process
The responsibility towards the impacts of all processes of the business operation of the organization on the stakeholders, environment and society. 2. CESR Out Process
The participation in and support for environmental and social activities that are not related to the operation of the organization. 3. CESR As Process
The support for and implementation of environmental and social activities that are not involved with the core business of the organization but are partly related to the business process.
Out Process
In Process GREEN Enterprise
GREEN Design Concept
L.P.N. Academy
As Process
GREEN Financial Management
GREEN Marketing Management
Social Enterprise
GREEN Construction Process
GREEN Community Management
Togetherness Care and Share From Corporate ESR to Community ESR
33 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
2 IN PROCESS
P.34 P.50 P.58 P.64 P.76 P.96
GREEN ENTERPRISE GREEN DESIGN CONCEPT GREEN FINANCIAL MANAGEMENT GREEN MARKETING MANAGEMENT GREEN CONSTRUCTION MANAGEMENT GREEN COMMUNITY MANAGEMENT
34 SUSTAINABILITY REPORT 2015
G1
Enterprise Business Operation Focusing on Management and Human Capital It is the business operation that gives importance to management and human capital. It is the starting point of 6 GREEN LPN concept - the operational process designed to enhance the sustainable development of the organization. The corporate policy is established for the organization to become a “Value Organization� and can be categorized into two aspects as follows: 1. Management for Sustainability 2. Human Capital Management
35 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
ENTERPRISE
1. Management for Sustainability
6. Corporate Governance
1. Appropriate Profits and Growth
The business operation of the Company is responsible, fair, transparent and auditable. We do not take advantage of our competitors or only focus on profit generation.
With regard to the sustainable policy of the organization, the Company has developed the sustainable management guideline and strategy by establishing appropriate growth target in revenue and profitability for continuous and sustainable profit. 2. Environmental and Social Awareness and Responsibility
The Company takes responsibility towards impacts from the business operation and promotes environmental and social awareness and responsibility by enhancing the integrity of staff and promoting participation of staff in environmental and social activities. 3. Affordable House
In accordance with sufficiency economy principles, the policy on product development of the Company is to build a residence at an affordable price as well as to create a great quality of life for all the residents. 4. Innovation Development
To promote sustainable competitive advantage and product and service values, the Company has continuously been promoting the development of innovation both at the policy and operational level. Moreover, “lateral thinking” is also identified as one of the core competencies to encourage staff to develop new innovation at work as well as operational efficiency. 5. Balanced Returns for Stakeholders
Long-term growth under corporate governance and sustainability principles is crucial for the organization. The Company thus strives to generate a balanced and appropriate profit for all stakeholders.
7. Risk Management and Supply Chain Management
All aspects of risks are managed and controlled for the long-term benefit of all stakeholders who are important to the business growth of the Company. The profits distributed are established in accordance with the competitive situation and operational performance. Risks are reduced by reserving cash to maintain the liquidity of the Company. 8. Anti-Corruption Policy
The Company rejects all forms of corruption, whether it be internal or external by establishing strict operational guidelines to reduce risks, communicating with and raising awareness of staff, identifying integrity as one of the corporate values, declaring the intention against corruption, complying with law and paying taxes. 9. Giving Back to the Society
The Company plays a role in creating a better society by supporting the concept of “social enterprise” and providing job opportunities to create income and dignity of underprivileged women. The culture of “togetherness, care and share” is promoted in all aspects of the operation of the Company. Knowledge and experiences gained are also shared with the public. 10. Efficient Use of Resources
One of the operational strategies is cost management as it helps reduce expenses which directly affect the establishment of selling price and ensure the most efficient use of resources in all processes. The Company also encourages related parties i.e. trade partners, staff and community members to reduce the use of natural resources.
36 SUSTAINABILITY REPORT 2015
2. Management of Human Capital 1. Corporate Value
The Company puts emphasis on the development of human resources to carry on the success of the Company. LPN Way is developed from the core competency of staff to be the guideline that will promote the sustainability in the management of human resources in an integrated manner, to build the identity of the organization and be the operational standard. LPN Way comprises two milestone values i.e. “continuous development” and “respect for stakeholders”. The seven components of the values are “C-L-A-S-S-I-C” as follows:
Continuous Development
C L A S S I C
Cost with Quality is the project management that realizes the importance of the careful utilization of
resources and the efficiency of project management which focuses on the reduction of direct costs and hidden costs as well as the reduction of extra expenses in all departments. Lateral Thinking is the new way of thinking that is flexible and different without any fear of obstacles
in order to improve, change, develop and create new products and services. The implementation and assessment of the new process must be facilitated. The aim is to add value to the products and services as well as the growth of the organization. Alliance is the way of treating long-time and trustworthy business alliances with trust and fairness
with the willingness to collaborate and develop the work continuously as if being in the same organization for the achievement of the common goal. Speed with Quality is the commitment to achieve the target before the deadline while maintaining the quality of the operation. The operational process has always been improved to seek the process that is least time-consuming and increase the efficiency of the operation.
Respect for Stakeholders Service Minded is the care for all groups of stakeholders at all times by putting ourselves in their shoes
and showing willingness and enthusiasm to provide full services that exceed their expectations in order to add value to the services and create good impression. Integrity is the action towards the organization and related business partners which is honest,
responsible, transparent, fair and ethical. Collaboration is the sense of collaboration, commitment, responsibility and kindness of all staff in the organization and the volunteer spirit and awareness on sharing for the achievement of the common goal.
37 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Core Competency
Corporate Value
C - Cost with Quality L - Lateral Thinking A - Alliance S - Speed with Quality S - Service Minded I - Integrity C - Collaboration
Cost Leadership Dynamic LPN Team Customer Centric Corporate Governance ONE LPN
2. Vibrant Organization
The concept of the management of human capital of the Company is based on the enhancement of happiness through the six factors at work by continuously developing the quality of staff, promoting exchanges of experiences and knowledge in order to become a learning organization and developing the operation guideline under the culture and values of the organization (LPN Way).
38 SUSTAINABILITY REPORT 2015
LPN emphasizes the importance of the development of knowledge and capacity of staff in order to become a “Value Organization”
39 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
6 Factors of Vibrant Organization
1. Staff
2. Work
3. Workplace
Enhance the happiness of staff by organizing internal activities to build good relationship between executives and staff in all departments and promoting participation in various activities e.g. the activities within the organization and environmental activities to raise awareness about doing good deeds.
Regularly improve the efficiency of the operation to increase the efficiency of the operational process and encourage staff to develop process innovation at work.
Arrange appropriate working environment and atmosphere and promote occupational health and safety of staff.
4. Remuneration
5. Career Opportunity
6. Pride in the Organization
Provide appropriate, equal and fair benefits and remuneration and enhances the quality of life of staff by promoting Work-Life Balance.
Provide opportunity for career advancement and signifying career path for staff in all levels equally, whether they be male or female staff as well as build their capacity via trainings.
Build the reputation of the Company by adhering to the principles of good corporate governance, respecting human rights and operating the business in a transparent manner so that the staff can take pride in being a part of the organization.
3. Learning and Growth
With the commitment to develop the organization towards sustainability, the Company has established L.P.N. Academy to develop the capacity of staff to be able to support the business expansion and carry on the values and culture of the organization in accordance with the LPN Way via training courses and curriculums. It is also aimed to transfer the knowledge to external organizations in the future. 4. Work-Life Balance
The Company takes care of the quality of life of staff and encourages them not to over work and to spend time with their family. The Company sets appropriate working hours per week and encourages all staff to take annual leave.
40 SUSTAINABILITY REPORT 2015
G1
GREEN Enterprise
OPERATION • Promotion of Organization Values The Company has urged the staff to be knowledgeable of and truly understand the values of the organization and apply those values in everyday operation. The knowledge of staff and operational process have regularly been reviewed all through the year and the assessment has continuously been done to establish a standard behavior of all staff. In 2015, the trainings and activities organized are as follows: 1. Orientation and training for new staff to build their knowledge and understanding on the values of the organization. The training is organized for three days every month. The total of 11 training and orientation sessions have been organized with the participation of 218 staff. 2. LPN Way manual and a good behavior record book are developed to enhance the understanding of staff on the organization values. 3. Operational sites e.g. sales offices are visited to emphasize the organization values to staff. 4. Knowledge and understanding of staff is assessed online so that staff stationed at project sites are also able to participate in the assessment. 5. Activities promoting good behavior in accordance with the organization values and LPN Way are organized. 6. The Company promotes continuity of compliance with organization values by giving scores for staff to accumulate. 7. The Company organizes activities to praise staff who behave in accordance with LPN Way. From April-December 2015, the total of 258 staff are praised.
Result of the Happiness Survey of Staff in the “6 Factors of Vibrant Organization”
1) Staff participating in the survey (average) 100% 80% 60% 40% 20% 0
The number of staff participating in the survey has increased 16% from 2014. It is because the
86% 70%
increased
+16% 2014
2015
The number of staff participating in the survey
executive directors demand that the survey is compulsory and each department must urge their staff to participate in the survey. In 2014, the average of 967 staff participate in each survey and in 2015, the average of 1,254 staff participate in each survey.
41 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
2) % Happiness at Work 100% 80% 60% 40% 20% 0
75%
The average score in 2015 is 2% higher than that in 2014.
77%
increased
+2% The happiness at work
2014
2015
In 2015, the happiness at work of staff has increased from that in 2014. The score has significantly increased in many departments. Although the happiness score of some departments does not reach the target in Q4, the overall score at the organization level has increased.
3) % Organization Engagement 100% 80% 60% 40% 20% 0
64%
64% 2014
2015
This factor is assessed for the first time and the average score of the organization engagement during the whole year is 64%.
Organization Engagement
• Vibrant Organization The Company has sporadically organized the happiness survey of staff in all the six factors. The survey result as well as comments from staff will be used to improve the organization in various aspects. In 2015, three surveys are conducted and it is found that the average level of satisfaction of staff has increased from the previous year. Relationship with organization has also been surveyed for the first time this year. The information derived from the survey will allow the Company to provide better care for staff. 6 Factors for the Real Pleasure of Working
1. People: Enhance the happiness of staff by organizing internal activities to build good relationship between executives and staff in all departments and promoting participation in various activities both within the organization and environmental and social activities of other organizations. 2. Work: Regularly improve the efficiency of the operation to increase the efficiency of the operational process and encourage staff to think out of the box to develop process innovation at work. 3. Place: Arrange appropriate working environment and atmosphere and promote occupational health and safety of staff. 4. Remuneration: Provide appropriate, equal and fair benefits and remuneration and enhances the quality of life of staff by promoting Work-Life Balance. 5. Career Opportunity: Provide opportunity for career advancement and signifying career path for staff in all levels equally, whether they be male or female staff as well as build their capacity via trainings. 6. Pride in the Organization: Build the reputation of the Company by adhering to the principles of good corporate governance, respecting human rights and operating the business in a transparent manner so that the staff can take pride in being a part of the organization.
42 SUSTAINABILITY REPORT 2015
Result of the Happiness Survey of Staff in the “6 Factors of Vibrant Community” in 2015
Factors used in the survey
Work
Workplace
Organization
Revenue
Opportunity
People
Happiness Score
Happiness Score
Happiness Score
Happiness Score
Happiness Score
Happiness Score
74% 76% 83% 73% 77% 79% In addition, the Company has put emphasis on the development of vibrant organization in a more concrete manner in various aspects in 2015 as follows:
• Fair Treatment of Workers The Company aspires to become a “Vibrant Organization” that gives importance to all staff and realizes that they are the most valuable resources that will drive the organization forward towards sustainability. Apart from the development of capacity of staff in all levels, the Company also promotes good culture and atmosphere at work, improves surroundings for the safety of life, health and properties of staff and provides various welfares e.g. health insurance, annual medical check-up, provident fund and staff loan, etc. The Company also allocates benefits for staff, both male and female, who are married or have children as required by law and promotes activities organized for staff and their family such as Family Day activity, family trip and scholarship for staff’s children.
• Employment Equality (G4-LA13) The Company upholds gender equality in workplace and respects the human rights of underprivileged group of people. The decision-making of the recruitment process will be based on the capacity of the applicants. Gender, sexual oriental or other personal matters not related to work will not be taken into consideration. The types of employment include temporary employment, daily employment and permanent employment. Prior to being permanently employed, it is required that there will be a probation period of three months, during which the person will receive basic employment benefits such as medical fee and full compensation in case of accident in the workplace. Moreover, the policy of the Company is to maintain the standard on equal opportunities and fair treatment. The promotion, performance evaluation, calculation of income, remuneration and other benefits will subject to the performance and working capacity of staff regardless of their gender, sexual orientation or gender expression. The Company also provides opportunities The ratio of the basic salary for the disabled to work in the organization and treats them and remuneration of fairly. The Company has made the best attempt to create jobs women to men is for the disabled by setting the percentage of hiring people with disabilities in the organization. There are a number of disabled workers in the Company who are proud that they are able to (G4-LA13) provide for themselves and their families.
1:1
43 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Recruitment and Hiring
Performance Evaluation
The Company seeks to select and recruit staff whose qualifications are consistent with the L.P.N. Way. The recruitment and selection criteria will focus on decent grades and participation in voluntary activities. Moreover, the candidates will have to pass the test specifically designed for each position, the interview by the Human Resources Management Department as well as the hiring department to ensure that their qualifications are suitable for the opening position.
The performance evaluation system of the Company is effective, fair and able to reflect the efficiency of staff. PA-1 form is used to evaluate the performance of staff every six months. Moreover, a force ranking and bell curve systems are utilized to evaluate the performance of staff in each department. Rewards are paid to staff based on their performance to ensure fairness.
IN 2015, there are the total of
479 new staff recruited
of which are permanent staff
72
are contractual staff
193 are daily employed staff.
The Company also has internship program and bilateral internship program with various educational institutions, accepting 77 intern students in the organization in 2015.
77
intern students in the organization in 2015.
In 2016, there is a plan to implement the performance evaluation every three months to provide the opportunity for staff to improve their performance and enhance their efficiency in a concrete manner. Respect for human rights of underprivileged group of staff
The capacity, knowledge and quality of life of disabled staff are promoted. The Company ensures that the skills, quality of life and pride of this group of staff are promoted. Disabled staff are encouraged to attend various activities, for example, computer training and voluntary activities. Disabled staff with sporting talents are also provided an opportunity to showcase their talents on many occasions.
Promotion and Position Changing
The Company promotes and develops the learning of staff by giving them a chance to change their positions, whether it be changing department, position or company to benefit both staff and organization in a longer term. Career path and growth are also promoted among administrative staff (generalist) and professional staff (specialist). In 2015, the total of 274 staff from 1,095 staff or equivalent to 25% are promoted. Opportunities are also provided to staff who have been working in the same department for at least five years to transfer to other department or company. There are 99 staff expressing their interest in doing so. The Human Resources Management Department has considered the request and approved the transfer as appropriate. Furthermore, the human rights of underprivileged group of staff are very much respected. The capacity, knowledge and quality of life of disabled staff are promoted. The Company ensures that the skills, quality of life and pride of this group of staff are promoted. Disabled staff are encouraged to attend various activities, for example, computer training and voluntary activities and to showcase their talents on many occasions.
In 2015, the total of 274 staff from 1,095 staff or equivalent to 25% are promoted.
274 staff
25%
44 SUSTAINABILITY REPORT 2015
• Anti-Corruption Policy (G4-SO4) The Company has established the anti-corruption policy that is relevant to the operation of staff as well as continuously assesses risks and performance on this matter. The anti-coruption policy and guidelines are communicated to staff via various channels to prevent misconducts within the organization. It is indicated that all staff are responsible for ensuring compliance with anti-corruption measures. Tools to prevent misconducts are developed and announced. The whistleblower policy has also been established as follows:
Whistleblower Procedure Board of Directors Report The receiver of complaints identifies a “protection measure” while the investigation is conducted and inform the Internal Audit Department.
Audit Committee Report
Internal Audit Department
Summary Report
Complainant Start
Receiver of Complaint Misconducts/Violation of Regulations Are Found - Law - Articles of Association - Inappropriate Behavior - Code of Business Conduct - Or Having Trouble from the Above Complaint
- Chief Executive Officer (CEO) - Director, Executive Director or Supervisor - Mr. Sampan Tangtaworn, Manager of Organization Development Department
Protection of Complainant Whistleblower Policy • The complainant does not have to reveal his/her name. • Relevant information is confidential. • The complainant can ask the Company to come up with a protection measure while the investigation is being conducted. • Making an unfair complaint against another staff is considered a disciplinary offence and is punishable. • An assistance will be provided to the affected persons to ease the problem.
Preliminary report submitted to the CEO to take action following the urgency of the issue
Report the progress to the complainant within 30 days (in case that the complainant is disclosed).
Initial Fact -Finding Procedure
Not Complicated Issue
Completed within 30 days
If necessary, a request for extension can be submitted to the CEO.
- Facts found in the investigation - Methods and process of investigation of the damages occurred - Impacts on the Company - Problem-solving approach - Other relevant matters such as disciplinary punishment
Various Departments Are Involved
The CEO appoints an “Investigation Committee.”
Mr. Sampan summarizes the outcome of the investigation and the solution and reports to the CEO
Misconduct of Staff / Violation of Law
Human Resources Management Department appoints an “Investigation Committee” to investigate the issue and propose a disciplinary punishment.
45 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
• Organization of Learning and Growth With the commitment to develop the organization towards sustainability, the Company has established L.P.N. Academy to develop the capacity of staff to be able to support the business expansion and carry on the values and culture of the organization in accordance with the L.P.N. Way via training courses and curriculums. It is also aimed to transfer the knowledge to external organizations in the future. For more information on the development of the organization as the organization of learning and growth, please refer to the operation of L.P.N. Academy.
% Satisfaction in Learning and Development from the Happiness Survey 100% 80% 60% 40% 20% 0
77% 76%
+1% higher than that in 2014
2014
2015
The average score in 2015 is 1% higher than that in 2014.
In 2014, 967 staff participated in the survey. In 2015, 1,254 staff participated in the survey.
Learning and development
• Work-Life Balance The Company takes care of the quality of life of staff and encourages them not to over work and to spend time with their family. The Company sets appropriate working hours per week and encourages all staff to take annual leave.
% Work-Life Balance from the Happiness Survey 100% 80% 60% 40% 20% 0
70% 66%
+4% higher than that in 2014
2014
2015
Work-Life Balance
The average score in 2015 is 4% higher than that in 2014.
In 2014, 967 staff participated in the survey. In 2015, 1,254 staff participated in the survey.
46 SUSTAINABILITY REPORT 2015
• Complaints from Staff (G4-LA16) The Policy on Protection for Employees Who Inform on or Disclose of Wrongful Conduct or Non-Compliance with Laws and the Code of Conduct or Whistleblower Policy has been established to receive complaints from staff and ensure that the information of the informant/complainant is kept confidential to protect the identity of the complainant. Complaints or suggestions on the operation of the Company can be submitted via various channels as follows: 1. Directly inform the Chief Executive Officer. 2. Send a message to the Chief Executive Officer on WhatsApp. 3. Submit complaints/suggestions via the special P.O. Box no. 21. 4. Submit complaints/suggestions via the Suggestion Box. 5. Provide information in the evaluation form for the relationship with organization. 6. Contact Organization Development Section, Human Resources Management Department. In 2015, two complaints are submitted, both of which are about misconducts related to working hours of staff. The Company has investigated the issue in a fair and transparent manner and considered the punishment in accordance with the regulations of the organization. The issues are also reported to the executive directors and related parties. (G4-SO5)
Two complaints are submitted via P.O. Box 1
1
P.O. Box
Direct Contact
• No. of complaints = 2 issues • No. of complaints investigated and concluded = 2 issues
1
0 Complaints submitted
With regard to the submission of suggestions and comments of staff via suggestion box, there are 62 suggestions and comments submitted. The Company has already considered and taken immediate action on pressing issues as well as coordinated with related departments to solve the problems. As for suggestions related to staff benefits and welfares, the Company has presented the issues to the Welfare Committee for consideration and appropriate action. 25 20 15 10 5 0
25 15
15 6
Suggestions Complaints Comments Issues submitted
Others
Whistleblower P.O. Box LPN P.O. Box 21 Yannawa Post Office Bangkok 10120
47 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Scoop
G1
Revision of the Code of Business Conduct for Staff
(G4-SO4)
The Company has organized the training on “The Code of Business Conduct and the Code of Conduct for Staff” and prepared a manual to be distributed to all staff to raise awareness of good corporate governance. Moreover, it is to keep the staff of all departments informed of the corporate governance principles related to themselves, the Company, customers, shareholders, supervisors and colleagues, the conflict of interest, the use of information of the Company, operational regulations, welfares and benefits as well as the disciplines and disciplinary punishment. To showcase the strict adherence to the Code of Conducts as the operational guideline of the Company, the content of the “Code of Business Conduct and Code of Conduct for Staff” training course covers the ten topics of the Code of Conduct for Staff included in the staff manual, the anti-corruption policy as well as the whistleblower policy. In the training, case studies of the organization are presented and explained. In 2015, 32 trainings are organized and participated by the total of 1,388 executives and staff, accounting for 92% of all staff.
Ten Topics of the Code of Conduct for Staff 1. 2. 3. 4. 5. 6. 7. 8. 9.
Scope of the Code of Conduct Compliance with law and regulations of the Company Credibility of information Confidentiality of information Communication Insider trading Harassment Gambling, drinking and drugs Giving and receiving gifts and organizing a reception 10. Other jobs or external activities
48 SUSTAINABILITY REPORT 2015
Scoop
G1
“The Seeds”
Idea Suggestion
We are living in a highly competitive world where innovations are initiated to help develop production capacity and increase operational efficiency. The Company thus supports and encourages staff to come up with new innovations both in terms of operational process and product value which will become tools to enhance the uniqueness of the products and service of the Company. Realizing that staff are the crucial mechanism behind the growth and development of the organization, the Company promotes participation of staff in creating new innovations as well as team work and thinking out of the box. “The Seeds: Idea Suggestion” competition has thus been organized for the first time in 2015 with the following objectives:
1 To promote lateral thinking and foster creativity
in a sustainable manner.
2
3
To promote teamwork and out-of-the-box thinking
To increase knowledge and creative skills
and embrace new ideas and changes.
of all staff to be applied in the operation.
“The Seeds: Idea Suggestion” competition is launched in February and concluded in December. Staff can choose a topic and suggest their ideas to improve the operation of the Company such as reducing time, reducing costs, initiating innovations, increasing quality, enhancing safety and increasing management efficiency. The total of 73 projects is submitted from 323 staff (accounting for 32% of all staff), all of which are viable. The ideas can be implemented to improve the operational standard and reduce costs of around 3,000,000 million THB per year.
49 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
First Prize : “5 in 1 Cleaning Machine” Project of the Cost Management Department Second Prize : “Ground Resistance Testing to Reduce Grounding Costs” Project of the Maintenance Department and Project Third Prize :
Management Department “A Water Meter Eyehole” Project of the Maintenance Department
73 Projects
Time
Cost/Revenue
Effective
Innovation
submitted from LPN staff
23
9
13
3
Projects
Projects
Projects
Projects
Project budget and prizes:
Costs saved per year (excluding indirect costs that can be reduced but not assessable):
300,000 THB
The Seeds
of staff submitted their ideas to the competition.
participated in the competition.
3
around million THB per year
Average costs saved per project:
42,000 THB
50 SUSTAINABILITY REPORT 2015
G2
Design Concept GREEN Design concept is the environmentally responsible design of products. The Company gives importance to the design and development of project from the process of designing the product and the layout of the project in order to minimize environmental impact. The concept is in accordance with the Green Building Standard of LEED (Leadership in Energy and Environmental Design), U.S.A. The components of the Green Design Concept are as follows: 1. Strategic Location 2. LPN Green Project - LEED 3. Blue Ocean Strategy
51 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
DESIGN CONCEPT
1. Strategic Location It is to select strategic locations where there is minimum competition but have development potential. The location must be close to convenient facilities, public transportation system and express ways to reduce environmental impacts from large-scale project development as well as energy usage in transport.
2. LPN Green Project - LEED It is to design the product and project plan under “LPN Green Project” concept that has been promoted to the public and received positive feedback in terms of sales volume. However, even though “LPN Green Project” is the concept that is derived from the Green Building Standard of the U.S.A (LEED - The Leadership in Energy and Environmental Design), the Company has adjusted some of the criterion to be suitable with the business operation and climate and environment in Thailand. The project is developed with the following concepts: Sustainable Site Development
The environmental impacts from project development are minimized by selecting the project locations which are highly populated on a main road and near convenient facilities. It must also be close to public transportation system and express ways which will directly help ease the traffic and reduce energy usage. The residents are encouraged to use public transportation system by arranging a shuttle bus to connect with the main transportation system. The previous open space is compensated with green area and landscapes in the project.
Water Efficiency (G4-EN10)
The Company opts for water-conserving sanitary ware for efficient use of water such as dual flush toilet system which can reduce the use of water by as much as 50%. The residents are encouraged to take a shower instead of a bath to directly reduce the use of water. Treated waste water is used to water the plants in the project to increase the efficient use of water as well as to reduce waste water being released into the public drainage system. The efficient plant watering system such as drip irrigation system is installed in the project. Energy Efficiency (G4-EN7)
The condominium unit is designed to have an awning and a porch to reduce the heat from sunlight that directly enters the units. The lighting and air conditioning system are to be efficient and suitable to reduce electricity use. Renewable energy such as solar power is used for garden lighting. The Community Management Department is responsible for managing energy usage in the condominium to be as efficient as possible while also being safe at the same time.
52 SUSTAINABILITY REPORT 2015
Material and Resources (G4-EN1)
Indoor Environmental Quality
The Company uses alternative materials that are proved to be safe and environmental friendly to replace natural materials to reduce the impact on the environment such as using laminate floor instead of real wood parquet floor. The dimensions of the buildings are designed to be consistent with the dimensions of construction materials to maximize the economic value and reduce waste of materials that would have to be discarded back to the environment. Figured glass is used instead of opaque walls as walls within the units to obtain natural sunlight while preserving the privacy of the residents. The Company also uses insulated glass for outside windows on the west side to minimize heat from the afternoon sun when the temperature reaches its peak during the day. Green Walls are installed in the parking lot to reduce carbon dioxide and prevent heat from spreading into the residence and surrounding areas. Waste management is done by segregating waste and disposing waste appropriately both during the construction and after the residents have moved in.
It is focused on the efficiency of sustainable community management under “F-B-L-E-S+P� strategy i.e. the management of infrastructure and convenient facilities in the project, the management of budget, the promotion of discipline and culture of living together, the conservation of environment in the community and appropriate use of energy, the management of the security system and other regulations and the development of the capacity of staff involved in community management. Innovation In Design (G4-EN7)
It is to plan the layout of the building and project to be in accordance with the environment by allowing natural light and wind into the project. The layout and design of the condominium unit is planned to include open space which is appropriate for living. The construction period is shortened through the use of semi prefabrication system.
3. Blue Ocean Strategy It is to avoid developing a project in a highly competitive area with expensive land prices to reduce costs and be able to develop projects that respond to the needs of the customers in the middle to lower-middle income group. The Company enhances the value of the project by arranging a shuttle bus to connect to the main public transportation system, providing full convenient facilities in the project e.g. convenient stores, laundry service and restaurants. The common area is designed to be suitable with the lifestyle of the residents to promote the use of common area and build a great community.
The common area is designed to be suitable with the lifestyle of the residents to promote the use of common area and build a great community.
53 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
LPN gives importance to the designing and development of project. The building is designed to be in accordance with the environment by allowing natural light and wind into the project.
54 SUSTAINABILITY REPORT 2015
G2
GREEN Design Concept (G4-EN27)
OPERATION
Environmentally Responsible Project Design Building design is the crucial beginning of real estate development since it can create environmental impacts in many aspects. The Company has thus given importance to sustainable design and initiated LPN Green Project Development in 2008. Lumpini Place Rama 9-Ratchada is the pilot green project which is environmental responsible in terms of project design process, selection of construction materials and careful use of natural resources. The concept has been developed from extensive project development experiences and in accordance with “LEED� Standard (Leadership in Energy & Environmental Design) which is international green building standard. In 2014, Green Design Concept is strengthened. Two LPN Signature Green Projects, the prototype of green project that emphasizes the environmental aspects of the development, are developed i.e. Mill Place Posri Community Mall and Lumpini Park Nawamin-Sriburapa.
LPN Signature Green Project The prototype of green project that emphasizes the environmental aspects of the development in accordance with international green building standard.
55 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
In addition, in order to minimize the impacts of project development in a concrete manner and to standardize the operation, the Company has initiated Green Standard Checklist in 2015 as an operational standard for project design and management. The project is designed by combining the unique project development concept of the Company with international green building standard. The details and objectives of Green Standard Checklist are planned in collaboration with the designer of the project. The criteria of the Standard are as follows:
Section 1
Section 2 (G4-EN10)
Section 3 (G4-EN7)
Location and Environment
Water Efficiency
Energy Efficiency
8 topics
14 topics
8 topics
It is to select appropriate project location to avoid traffic problems and provide green space larger than that required by law.
It is to use water-conserving sanitary ware for efficient use of water and to use treated wastewater in the project.
It is to design the condominium units to have an awning and a porch to reduce the heat from sunlight. The lighting and air conditioning system are to be efficient and suitable to reduce electricity use.
Section 4 (G4-EN1)
Section 5
Section 6
Construction Materials and Resources
Indoor Air Quality (Common Area)
Indoor Air Quality (Condominium Unit)
2 topics
6 topics
6 topics
It is to use domestic products and environmental friendly materials. The buildings are designed to maximize the economic value of the materials and reduce waste of materials that would have to be discarded back to the environment.
It is to use environmental friendly materials, to take into consideration the health and welfare of the residents and to ventilate the common area.
It is to select enviornmental friendly and safe materials and to design the unit to allow natural light into the room.
Section 7 (G4-EN7) Innovation in Design 5 topics
It is to include unique innovative design of the Company in the checklist to further minimize impacts of project design.
56 SUSTAINABILITY REPORT 2015
Scoop
G2
LPN Signature
Green Project
“Lumpini ParkBeach Cha-am” is the first environmental friendly condominium project by the beach. The project is developed as “LPN Signature Green Project”
57 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
“Lumpini ParkBeach Cha-am” is the first environmental friendly condominium project by the beach. The project is developed as “LPN Signature Green Project” which is the model of green project. The buildings developed are energy efficient and environmental friendly. Moreover, efficient use of natural resources is ensured and trees on the land are best preserved. The Company has added values to the product by ensuring that it is environmentally sustainable as follows: • Reduce heat island effect by painting the building with light colors. • Install parking lot lights with motion sensors. • Arrange a special parking space for hybrid vehicles. • Use treated wastewater to irrigate the garden and the water from the swimming pool can be used in the fire extinguisher system. • Arrange a space for waste segregation. • Use energy-efficient light bulbs. • Elevate the water storage tanks to reduce water usage in the project and reserve water for fire protection. • Campaign for the use of bicycle in the project. • Grow local plants and plants that are drought tolerant.
Lumpini ParkBeach Cha-am is situated on Cha-am beach, Petchaburi province with the size of around 15 rai and 413 condominium units. The project is fully equipped with convenient facilities i.e. Suan Ruam Jai, playground, swimming pool, sauna, steam room, fitness, activity room, living library and convenient stores.
58 SUSTAINABILITY REPORT 2015
G3
Financial Management Green Financial Management is the management of finance with the objective of achieving sustainable business growth, appropriate and continuous growth of profit and balanced allocation of profit among all stakeholders of all project development processes. It includes the distribution of the dividend at the rate of no less than 50% of net income to shareholders, the appropriate remuneration for executives and staff as well as the establishment of selling price of condominium units to be cheaper than those of the competitors for the benefit of the customers. The Company has also allocated a budget to promote the quality of environment and society during project construction. Furthermore, the preparation of the financial statement is transparent and auditable. Documents have been prepared on a quarterly basis to communicate the performance of the Company to the shareholders in order to build their confidence and showcase the importance of the financial discipline and financial risk management.
59 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
FINANCIAL MANAGEMENT
The Company realizes the importance of the accuracy and transparency of the financial statement and has arranged appropriate and efficient internal control system. Significant information is disclosed in the notes to financial statement along with the explanation and analysis to ensure that the accounting information is accurate and complete for the utmost benefit of the shareholders and investors in using the financial statement. The components of the accountable financial statement are as follows:
• Accountability Financial Statement 1. Transparency
4. Measurable
The financial statement of the Company is prepared in a transparent manner in accordance with the good corporate governance principles. The appropriate and efficient internal control system is arranged. The Board of Directors of the Company has appointed an Audit Committee comprising four independent directors, three of whom are knowledgeable in finance and accounting, to review the accounting policy and audit the quality of the financial statement as well as the internal control system. The report of the Audit Committee will be included in Form 56-1 and the Annual Report of the Company.
In order to ensure the transparency of the audit standard which will entail the sustainability of the Company, the financial statement of the Company is prepared in accordance with the financial reporting standard as prescribed by the Accounting Profession Act B.E. 2547. The brief items in the financial statement are prepared in compliance with the notification of the Department of Business Development, the Ministry of Commerce in 2011 regarding the requirement for the brief items to be shown in the financial statements, and in compliance with the regulations of the Securities and Exchange Commissions regarding the Preparation and Presentation of Financial Statements under the Securities and Exchange Act B.E. 2535.
2. Auditability
The Board of Directors of the Company has appointed the Audit Committee to oversee the operation and review both annual audit plan and long-term audit plan. The items in the financial statement are to be randomly audited and the outcome of the revision will be considered on a quarterly basis. Any issues found will be addressed in a timely manner. The Audit Committee opines that the internal control system of the Company is sufficient and effective and supports the development of the quality of audit work both in terms of personnel and operation to be of international standard. 3. Disclosure without Hidden Agenda
The Company discloses sufficient significant information in the notes to financial statement along with the explanation and analysis to ensure the accuracy and completion of the financial information record for the utmost benefit of the shareholders and investors in using the financial statement, especially the disclosure and report of the prices of all pieces of land bought to the Stock Exchange of Thailand.
5. Discipline
The discipline and auditability in the financial management of the Company are ensured. The investment is controlled so that the capital of the Company is not invested in the business that is outside the area of expertise or in the activities that have conflict of interest with the Company. It is also made sure that the circulating capital of the Company is sustained to be sufficient for the payment of the remuneration for staff and all stakeholders. 6. Financial Risk Management
Risks are taken into account in the investment or financial operation of the Company. Investments will not be made if the Company has to borrow more than we can afford to repay. Instead, the Company will invest with the existing resources and knowledge. The debt to equity ratio is maintained not to exceed 1:1 and is audited by the Risk Management on a regular basis.
60 SUSTAINABILITY REPORT 2015
G3
GREEN Financial Management (G4-EC1)
OPERATION
• 20 Miles March Growth Strategy 30% GROWTH
Million THB
16,700
18,000 15,000
13,483
14,401 12,960
12,445 12,000
10,047
9,000
6,824
8,592
5,020
6,000 2,478 3,000
7,304
3,583
1,944
0 2546
2547
2548
2549
2550
2551
2552
2553
2554
2555
2556
2557
2558
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Unit : Million THB
Balance Sheet 2015 Total assets
Total liabilities
Shareholders’ equity
19,625.30
8,044.05
11,581.25
2011 : 2012 : 2013 : 2014 : 2015 :
2011 : 2012 : 2013 : 2014 : 2015 :
9,697.99 14,021.17 17,420.19 19,783.69 19,625.30
2,464.54 5,539.45 7,794.38 9,375.31 8,044.05
2011 : 2012 : 2013 : 2014 : 2015 :
7,233.45 8,481.71 9,625.80 10,408.38 11,581.25
16,673.64
6,000
12,959.92
8,000
14.400.50
10,000
13,482.52
10,000
12,444.51
12,000
8,000 6,000
4,000
4,000
2,000
2,000
0
2011 2012 2013 2014 2015
0
2,000 1,000
500
0 2011 2012 2013 2014 2015
1,000
2,021.42
1,500
12,000
2,328.58
3,000
14,000
2,229.09
2,000
14,000
2,022.17
4,000
16,000
4,970.77
2,500
18,000
16,000
4,005.73
5,000
18,000
4,558.41
2,413.40
4,208.79
4,970.77
4,002.90
15,981.26
15,981.26
16,673.64
12,321.09
Net profit (Loss)
13,871.09
Gross profit from sales
12,950.32
Revenues from sales
12,034.78
Total revenues
2,414.40
Unit : Million THB
Income Statements 2015
0 2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
61 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
In terms of financial management for sustainability, the Company has ensured that the financial management is transparent and auditable. The reporting and disclosure of the financial statement to the public are done on a regular basis as a listed company in the Stock Exchange of Thailand. In addition to the above, the financial management framework that emphasizes the importance of financial discipline is established. There are indicators to signify the status and follow up the operation of the Company. They are also the tools to ensure that the business operation is appropriately conducted, financial risks are managed for continuous and steady growth and profits are generated from effective operational system. The key indicators are as follows:
• Indicators
2. Gross Profit Margin
Gross profit margin is the proportion of gross profit and net sales volume of a company which indicates the efficiency of the business operation in terms of profit generation and cost management. A business with satisfactory gross profit margin implies the ability to achieve the highest sales volume comparing with the sales cost. However, the gross profit margin should not be too high as it may show that the customers, employees, trade partners and other stakeholders are being taken advantage of and that the company is not being environmentally and socially responsible which is against the policy of the Company. The Company has identified the gross profit margin target that is appropriate with the operation. It is also compared with that of the competitors in the market to indicate the efficiency of the business operation of the Company.
1. Debt to Equity Ratio
The debt to equity ratio or debt ratio is calculated by dividing a company’s total liabilities by shareholders’ equity or registered capital. The ratio indicates what proportion of equity and debt the company is using to finance its assets. Higher debt ratio translates into higher risks of the company being unable to pay debts as they fall due either in time of profit or loss. On the other hand, a lower debt ratio usually implies the extent to which shareholders’ equity can fulfill the company’s obligations to creditors which will positively enhance growth and competitiveness in the market. The debt to equity ratio of the Company is identified at 1:1 which is the ceiling of the management of growth and operation of the Company. Growth can only be achieved when a company is able to pay back both the interest and principal of a loan even in unfavorable circumstances. Adhering to such policy and practice, the growth of the Company may not be noticeable and yet the stakeholders can be assured of the sustainability and stability of the business. Debt to Equity Ratio Result 2014 0.9 : 1
Target 2015 1:1
Result 2015 0.7 : 1
% Gross Profit Margin
Result 2014 32.5 %
Target 2015 +- 30 %
Result 2015 31.1 %
3. Earning per Share
The earning per share is the portion of a company’s net profit from the operational performance each year to be allocated to shareholders as dividends. It indicates the profit from the investment of the company. The Company will present the information on the earning per share to the Annual General Meeting of Shareholders to seek approval for dividend payment. This is the true indicator of the operational efficiency of the Company. The Company has identified the target of the earning per share and dividend payment at the appropriate amount and proportion for shareholders to enable the Company to continually invest, expand and compete in the market. It will also reassure the shareholders of the profitable returns for sustainable growth. % Earning per Share
Result 2014 58.4 %
Target 2015 ≥ 50 %
Result 2015 55.0 %
62 SUSTAINABILITY REPORT 2015
Scoop
G3
Business Continuity Plan In 2015, the Company has disclosed the Business Continuity Plan as well as the Tax Policy of the Company to communicate financial management guideline to shareholders. It is to reassure the shareholders that the returns are appropriately established and financial risks are managed to achieve business stability and sustainable growth.
• Business Continuity Plan - BCP Risks are unpredictable so business operators must always be prepared and be able to adapt to the changing situation. The Company has prepared the Business Continuity Plan by identifying a step-by-step work plan and categorizing the plan by the severity of the situation. As a result of uncertain political situation and regional economic downturn in 2014, the Company assesses the financial risk to be at the medium level. Costs are cut and the cash of one billion THB has been reserved to protect the business operation and plan in case of unforeseen emergency and to continue the business operation in the time of crisis. However, in 2015, the Company has been taking caution in business operation, reducing the level of financial risk and decreasing the amount of cash reserve to 800 million THB and 500 million THB respectively. The situation and economic factors both inside and outside the organization are closely monitored.
63 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
AX
Tax Policy As the ultimate goal of the Company is to achieve business growth and continuous and sufficient profit, the tax management and planning in accordance with the tax law and accounting standard is necessary for the benefit of the organization, trade partners and shareholders in terms of costs and cash flow. The Company has identified the guideline for the management and planning of tax as follows: 1. The accounting and tax records are revised and fully reported in line with the accounting standard and principles. The details are stated in the notes to financial statement for the benefit of the investors and are auditable by the Revenue Department if needs be. 2. The tax is paid and the refund is claimed as entitled by law for the benefit of the organization and transparency. 3. Transactions of the Company are monitored and analyzed to prevent any impacts on tax. 4. Seminars and trainings are attended. News and changing regulations on accounting standard, regulations of the Federation of Accounting Profession, the Stock Exchange of Thailand, the Revenue Department and other related organizations are followed up on a regular basis.
• Disclosure of Tax Policy to Stakeholders The tax policy of the Company is disclosed in the notes to financial statement along with the explanation and analysis of risks to ensure that the records in the financial statement are accurate, complete, transparent and auditable both in terms of accounting and applicable tax. It includes tax obligation that may occur in the future in case of a legal dispute with a government agency.
• Assessment of Tax Risks The Company has assessed tax risks by: 1. Consulting with tax-related agencies for clarity and asking for an operational guideline to ensure compliance with the regulations and 2. Analyzing and assessing risks that might occur from the discretion of an officer of the Revenue Department to prevent possible risks. For more details on tax policy and operation, please refer to the notes to financial statement in the Annual Report 2015.
64 SUSTAINABILITY REPORT 2015
G4
Marketing Management The marketing strategy of the Company is established to be in line with the intention to build a high-quality and affordable home for the customers in the middle to lower-middle income group and to create a good quality of life in a great society by being responsible towards the consumers both before and after the handover of the condominium unit. Moreover, the marketing strategy of the Company is fair. The rights of consumers are respected and the competitors are treated fairly. The 6Ps marketing strategy is as follows: 1. Product 2. Price 3. Place 4. Promotion 5. People 6. Process
65 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
MARKETING MANAGEMENT
1. Product
4. Promotion
It is to deliver the product value that is unique from the competitors both in the condominium unit and common area. The projects are developed from extensive knowledge and experiences in project development and community management under “Vibrant Community� strategy to respond to the needs and lifestyle of the residents. The construction standard is strictly controlled and construction materials are carefully selected so that the condominium units are of highest quality and suitable for living.
The promotion of products to customers is done in a transparent manner with the concern for the benefit of both parties. The sales conditions will be in line with the financial capacity of the customers. The Company promotes the projects creatively and fairly without any hidden agendas. The competitors are treated fairly, not attacked or taken advantage of.
2. Price
It is to set the price of the product to be lower than that of the competitors in the market. This can be achieved by managing costs and expenses in all the production processes so that the price is affordable. The profit rate and conditions for down payment is established to be appropriate with the target group. Financial management service is also provided to the customers to facilitate their loan request and increase the opportunity of owning a home. 3. Place
The location of the sales office must be on or close to the project site so that it will be conveniently accessible. The Company also provides full details of the project and sales conditions that are easy to understand without any hidden agendas. In some projects developed outside Bangkok, a sample unit may also be shown in the sales office which is situated in the heart of the city center for the convenience of the customers.
5. People
It is to focus on the satisfaction of the customers. The standard of the services at touch points e.g. sales officers, maids and security officers is established in accordance with LPN Services Culture (S-E-R-V-I-C-E-S) to create positive experiences for the customers. There are also channels for making complaints and recommendations for the improvement of the services. 6. Process
It is the provision of maximum convenience for customers. The reservation and contract execution process must be quick and uncomplicated. There are various payment channels. The decision to seize or return deposit money to customers must be carefully made and take into consideration the problems and needs of the customers.
66 SUSTAINABILITY REPORT 2015
G4
GREEN Marketing Management
OPERATION
In the past, the Company gives importance to the marketing strategy that is fair to the consumers and competitors. This year, the emphasis is put on the care for customers through provision of service and satisfaction to ensure brand loyalty of customers. This is one of the sustainable development goals of the organization, therefore, customer experience management is identified as the core operational strategy of the organization. The customers are inclusive of those who are interested in the projects, buy the product for residential purpose and buy the product to invest as well as renters. All of them are “customers” that the Company must care for both before the handover of the condominium unit (customers visiting the show unit, preparing buy-sell agreement, paying down payment) through to after the handover of the condominium unit (customers receiving the product and moving in). The community is managed under the “Vibrant Community” concept.
• Satisfaction and Complaint Management The scope of customer experience management of the Company is inclusive of the design of services provided to customers at all touch points, whether they are human touch points or non-human touch points. The objective is to increase customer satisfaction and improve and standardize the services provided to ensure that the interaction with all touch points exceeds customer’s expectation.
35. Community Driver 34. Maids at the Condominium 33. Brokerage Business Officers
25. Condominium Units 24. Common Properties 23. Convenient Facilities
Exper ienc es a fter m
27. Administrative Officers of Juristic Person 26. Community Managers
ing buy ore bef
32. Maintenance Officers after Ownership Transfer in ng 31. Security Relation Officers ovi 30. Maids at Juristic Person Office 29. Security Officers at Juristic Person Office 28. Building Maintenance Workers
1. Parking Space 2. Sales Office Exp erie 3. www.lpn.co.th nce 4. Show Unit s 5. Sales Activity 6. Call Center Prospect Customers 7. Sales Officers 8. Maids at the Sales Office 9. Security Officers at the Sales Office
Touchpoint Wheel 10. Condominium Unit Handover Activity Joint Owners/Residents (Co-owner)
Customers
11. Ownership Transfer Office 12. Juristic Person Office
13. LPN Payment Card 22. Bank Officers 14. Installment Payment Follow-up System 21. Officers of Business Alliances s 15. Mobile App. s e 20. Construction Officers proc E x p e ri g n i y e n c e s d u ri n g b u 16. Ownership Transfer Officers 19. Customer Experience Management Officer 18. LPN Staff 17. Finance Officers
67 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
In addition to ensuring the satisfaction of the customers, there is also a customer retention process of managing customer complaints and feedback. It is a great opportunity for the Company to be aware of the defects in our products and services and take action to solve the problems. The complaints will be managed through the complaint management process to provide assistance to the customers and contain the problem. Since social networking and online reviews are prevalent, the information has spread widely and quickly like never before. Minor problems could become major issues, therefore, finding appropriate solutions for the customers in a timely manner is the practice that all staff have always adhered to. At present, the customers can make a complaint via three channels i.e. Company website, LPN Mobile App and Call Center. After the complaint is received, it will be managed so that the situation is resolved within five days. Anyhow, it is also subject to the urgency of the problem as well as the action involved. The complaint management process can be categorized into eight steps. The information on the action taken and solutions are filed in the knowledge management system of the Company as a reference for other staff. The complaint management process of the Company is as follows:
• The Complaint Management Process of the Company Process
Related Department
1. Receive complaints from various channels
the outcome in the system and inform the customer of the proposed solution.
Copied on the complaint report
Report the complaint and record it in the system
one day and record it in the complaint system
4. Take action to solve the problem and record
Executive
Receive complaints
2. Inform the related department within
and contacts the customer within one day after being informed of the complaint
Customer/ Resident
Start
- Call Center - Direct call to staff - External website e.g. pantip.com - Executives
3. Related department acknowledges the complaint
Customer Experience Management Department (CEM)
Receive the complaint report
Investigate the nature of the problem
Take action to solve the problem
Explain the proposed solution to the customer
5. Related department reports the outcome of the action taken to the Customer Experience Management Department and executives
6. Contact the customer to follow up on the issue 7. Prepare a monthly report to be submitted to
Report the outcome
Report the outcome
Follow up on the outcome Complaint report
the executives and related department
8. File the report and share interesting
File the report
case studies with other staff in the knowledge sharing session End of the process
68 SUSTAINABILITY REPORT 2015
Mystery Shopper
Apart from ensuring high standard of all touch points, the Company also monitors the performance of staff via mystery shoppers who will observe and assess the quality of services provided. The defects in services will be improved and the service standard will be established to create great experiences for customers and residents. The mystery shopper will monitor the followings:
1. Staff (dress code, how they greet and interact with customers, information provided, knowledge about the product, personality and follow-up of customer needs) 2. Place (cleanliness, convenience, environment and location)
• Research Methodology Separate into 2 parts which are “Service Protocal” and “Place” Greeting
Location
Dress Code
Sales Technique /Follow up
Display Room /Facilities
Parking & Sign
Customer Approach
Knowledge & Competency
Environment
Cleanliness
Personality
Social Customer Management (Social Monitor)
Information consumption at present has vastly changed especially on social media where there are both negative and positive communications. There are also social media influencers who are knowledgeable and specialized in a certain field and followed by a large number of people. Their comments could affect the organization. Realizing the importance of online communication, the Company has used Facebook and Line as channels to communicate with customers. Moreover, complaints and suggestions made from customers and the general public on social media on the brand, product and service of the Company are followed up. The movements in communities are monitored. The information gained is used to improve the services provided by the Company. Realizing the importance of online communication, the Company has used Facebook and Line as channels to communicate with customers.
69 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
• Summary of Complaints in 2015 In 2015, there is no major complaint issue from the customers, residents or other related persons. However, the Company has compiled and categorized the complaint issues to be used as case studies to develop and improve the operation especially that involves the delivery of product and service values to customers. The complaints are categorized into two groups as follows: Group 1: Product Value
Group 2: Service Value
1. Complaints about products e.g. unfinished repair work in condominium units, leaks or broken equipment. 2. Complaints from neighboring houses e.g. loud noise or dust problems from construction site.
1. Complaints about community management under F-B-L-E-S strategy 2. Complaints about provision of service e.g. manner of staff and quality of services provided.
Number of Issues: 1,201
67%
24%
Complaints (806 issues)
Suggestions (284 issues)
9% 100 80 60 40 20 0
82
86
81
Compliments (111 issues)
87 78
74 67 56 45 34
38
51
51
54 51 59
51
41
41
39
55 37
36
18
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Complaints in 2014
* The average of 68 complaints per month.
Nov
Dec
Complaints in 2015
70 SUSTAINABILITY REPORT 2015
Communication Channels
33% Call Center (391 issues)
45% LPN CARE (544 issues)
Complaints Suggestions Compliments
Channel
LPN Care (Mobile App) Call Center Website
Communication Channels
352 253 201
192 38 54
100 11
22% Website (266 issues)
4 Categories of Complaints Complaints in 2015 : 806 Issues
1%
5%
Environment (In/Out/As Process) 7 issues
Product Value (Q-C-S-E-S) 38 issues
47% People (S-E-R-V-I-C-E-S) 381 issues
Complaints in 2015 806 issues
47% Service Value (F-B-L-E-S) 380 issues
In 2015, there is the total of 806 complaints from customers, increasing 304 complaints or 60% from 2014. There is a tendency that the number of complaints will be increased in the future as a result of more convenient and faster communication channels. The ratio of the complaints received and the number of customers of the Company is only 0.0008% which is rather low but not insignificant. The Company still emphasizes the management of complaints in order to ensure utmost satisfaction and positive experiences of the customers. The complaints about services provided at touch point is 78% higher than those in 2014, most of which are on the delay in problem-solving process and manner and patience of staff. As for complaints about community management under F-B-L-E-S strategy, the number has increased 59%. Most of the complaints are related to life quality (L) such as cigarette smoke and loud noise.
71 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Product Defect: 38 issues
Product Value Product (Q-C-S-E-S)
94% Q
C
S
E
Quality
Cost
Speed
Environmental
36 issues
0 issue
0 issue
0 issue
2% S
Safety 2 issues
FBLES : 380 issues
Service Value Community Management (F-B-L-E-S)
34% F Facility
131 issues
1% 61% 1% L E B Life Budget
11% S
5 issues
11 issues
Quality
231 issues
Environmental
2 issues
Security
SERVICES : 381 issues
People Value
Service Culture (S-E-R-V-I-C-E-S)
13% 13% S E Smile Eager
Ready
50 issues
29 issues
51 issues
8% R
2% V
Variety
29% 26% C I Continuity Interest
6 issues
110 issues
101 issues
4% 5% S E Endurance
Sincerity
16 issues
18 issues Impacts: 7 issues
100% 0% Environment
Neighboring houses (G4-EN34)
IN
OUT
0% AS
PROCESS
PROCESS
PROCESS
7 issues
0 issue
0 issue
72 SUSTAINABILITY REPORT 2015
• Complaint Management Guideline 1. Increase the speed of response from within 12 hours to 8 hours to better address the customer complaints and identify appropriate timing for solving the problems in accordance with the category of complaints (within 3, 5 and 7 days). 2. Develop the standard of services provided by organizing a training on how to deal with complaints from customers and how to upgrade the quality of services provided to customers at touch points.
3. Randomly monitor the quality of services provided through a mystery shopper to look for defects and improvements. The assessment will be done by a third party who does not have any interest in the outcome of the assessment. 4. Manage the complaints in accordance with the level of severity and impacts on customers.
Complaints Management by Category
Type of Complaints
Management Guideline
Group 1
Group 2
Complaints that are very serious and frequent and affect the Company immediately
Complaints that are very serious making the customers so upset that they may stop buying the service from the Company e.g. unfinished repair work
Complaints that are General complaints frequent but do not affect e.g. regulations on the the customers’ decision parking space not to buy the service from the Company e.g. cigarette smoke from nearby units
Address the problem immediately and closely follow up the issues, directly report to high-ranking executives to seek advice on the problem-solving process to contain the problem.
Address the problem immediately and closely follow up the issues, directly report to high-ranking executives and related departments to seek advice on the problem-solving and preventive measures.
Inform the Community Inform the Community Manager to find Manager to take action solutions and contact on the issue. the customer to offer an apology and explanation.
Group 3
Group 4
Complaints Management by Category 2015 Level of Severity High
5%
Group 2: 44 issues • Construction workers use the space of neighboring houses without permission. • The repair work is not finished properly.
50%
Group 4: 403 issues • Cigarette smoke • Parking space • Regulations about the use of common area Low
Group 1: 0 issue
5% 45%
Group 3: 359 issues • Unpuctuality, not making appointment in advance • Delay in following up work • Errors and mistakes
Frequency
High
73 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
• Satisfaction Survey (G4-PR5) Joint Owners. The average score in 2015 is 92% and the Net Promoter Score (NPS) of the four departments i.e. Ownership Transfer Department, Annual General Meeting of Joint Owners, Joint Owners Committee and Brokerage Department is at 44%. This is the indicator that underlines the success of the operation that is responsible for the consumers, enabling the “Lumpini” brand to develop and grow in a sustainable manner and the standard of the provision of service to be developed further.
During the past year, the Company has measured the satisfaction of customers in the nine processes of the provision of direct services to the customers. One additional process from last year is the assessment of the cleaning service provided by “Community Maid.” Overall, the level of satisfaction on the services provided to customers is higher than that in the previous year, particularly in terms of sales and community management under “Vibrant Community” strategy. It is the key strategy that is surveyed during the Annual General Meeting of Summary of the Result of the Satisfaction Survey
Satisfaction Score, Comparing between That in 2014 and 2015 Complaints in 2014
Complaints in 2015
% 97 97
100 80 60 40 20 0
98 97
92 94
92 93
91 91
91 93
92 92
94
85 85
Call Center
Sales
STD = 85%
Construction Ownership Transfer
Joint Repair Work Brokerage Community Annual Maid Department after Owners General Meeting of Committee Ownership Transfer Joint Owners
Summary of the Net Promoter Score Complaints in 2014
Complaints in 2015
% 60 50 40 30 20 0
49 44 32
Call Center
Sales
Construction Ownership Transfer
44
46 45 36 36
Joint Repair Work Brokerage Community Annual Maid Department after Owners General Meeting of Committee Ownership Transfer Joint Owners
In 2016, the Company expects to increase the level of customer satisfaction and net promoter score by raising the standard of the KPIs to further develop the service standard in the future.
74 SUSTAINABILITY REPORT 2015
Scoop
G4
Baan Sarn Fun Project Baan Sarn Fun Project is initiated in 2012 to help those who wish to own the very first house fulfill their dream. The objective of the project is consistent with the operational policy of the Company. The assistance will be provided to customers who have regularly made installment payment for the down payment but financial institutions reject their loan application. It could be because the customers have debt burdens, have a history of late payments, their gross income or years of service fail to meet the criteria of the financial institution or are freelancers and thus do not have sufficient documents to support their loan application. The Company has provided assistance to the above group of customers by initiating “Baan Sarn Fun” project to make their dream of owning a house come true. Financial tools are applied to manage the customers’ credit and help build their credibility for loan application such as providing recommendations to enhance the customers’ financial discipline and ensuring that the documents required for loan application are complete. More importantly, the Company provides the opportunity for the customers to move into the project developed by the Company so as to save costs and upgrade their quality of life. The project has been implemented for three years. The owners of 419 condominium units from 20 projects have requested to join the program with the combined installment value of 201 million THB. In 2015, the payment of installments of around 6.4% of the condominium units is overdue. The Company aims to manage the overdue payment not to exceed 5% in 2016. Status
Unit
Value (million THB)
Percentage
Transferred Live in the Project Request for Cancellation of the Agreement Payment Overdue so the Agreement Is Cancelled
281 68 43
125.50 45.58 18.52
67.1% 16.2% 10.3%
27
12.64
6.4%
Total
419
202.24
100%
4 Easy Steps for the Very First House
2558
6.4%
2559
5%
In 2015, the payment of installments of around 6.4% of the condominium units is overdue.
The Company aims to manage the overdue payment not to exceed 5% in 2016.
CUSTOMERS
LPN PARTICIPANTS
APPLICATION
PLAN
CONTRACT
FINANCE
Fill in the application and prepare the required documents
Discuss and plan the payment term
Sign contract and follow up
Apply for a bank loan and transfer the ownership
75 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Mr. Chirathiwat Boonterm Driver of a Company Lumpini Megacity Bangna Instead of paying rent, I decide to buy my own home. At first, my loan request is rejected because my income is not qualified. I almost give up. But then a staff from the project calls me one day and says that I can move in right away. From paying rent, I now make installment payment to the project. The principle is also reduced. Finally, my loan application is approved and I am now a proud owner of a home.
Ms. Sriplai Suwasri Beauty Salon and Clothing Shop Owner Lumpini Condotown Chonburi-Sukhumvit I have many friends who live here and they ask me to join them. At the time, I have to pay for my tuition fee and pay off credit card debts so it appears that my expenses exceed my income. My loan application is rejected, of course. Then, LPN suggests that I improve my documents and allows me to pay installment to the project for a little while longer so that I have more time to deal with my problem. Now, I am happy to say that my loan application has already been approved.
Mr. Aiyares Pandee and Ms. Supacha Samranchitkakai Food Vendors Lumpini Condotown Chonburi-Sukhumvit We choose this project because it is affordable for food vendors like us. Since we reserve to buy a unit, we have tried to earn more income and put it in our account. When the curfew is announced, our business is affected and we earn less. The account does not look too good so the bank rejects our loan request. At that time, a staff from LPN calls us and invites us to the project. We talk for less than ten minutes and LPN gives us a chance to make installment payment to the project. The principle is also reduced as we pay. Then we reapply for loan and it is approved. We can finally afford a home.
76 SUSTAINABILITY REPORT 2015
G5
Construction Process Green Construction Process is the management of environmental and social impacts from the construction process which affects the environment and society the most. The Company has continuously developed the construction process by increasing the efficiency of the operation and reducing the environmental and social impacts through new technology and innovation. The Q-C-S-E-S+P strategy is developed as a guideline for construction operation for both the staff of the Company, LPN Team who design the project and contractors. The environmental responsibility and safety of workers and related persons are particularly emphasized. The Q-C-S-E-S+P strategy is as follows:
77 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
CONSTRUCTION PROCESS
Q
Quality of Product
C
Cost Control and Management
S
It is the management of project construction by emphasizing the quality of products i.e. common area and condominium units that meet the expectation of the customers. Apart from using high quality and environmental friendly construction materials, the construction site must be tidy and of high standard. The costs are carefully controlled and managed not to exceed the estimated amount. Both direct and indirect costs such as material costs, labor costs and other construction and operation expenses are managed. The efficiency of the operational process is also emphasized.
E
Environmental Responsibility
S
Safety of Workers and Participants
The Company ensures the safety of construction workers and related parties during construction by establishing a strict operational standard in terms of safety to prevent any accidents that may occur. Moreover, the safety of construction equipment and buildings has always been monitored. The Company also stresses the importance of occupational health and good quality of life of construction workers.
Speed of Delivery
It is to ensure that the construction and operational process are completed in a timely manner prior to the planned timeframe to reduce costs and risks for customers. This can be achieved from the combination of the expertise of the Company and the collaboration from all related parties.
It is the responsibility towards the environment to reduce the impacts both in the construction site and on neighboring communities during the construction process. The measures to reduce the environmental impacts indicated in the Environmental Impact Assessment (EIA) report are to be strictly implemented.
P
People Management
It is to manage the impacts on the stakeholders. The Company gives importance to the labor rights and quality of life of the construction workers that are normally ignored by other business operators, the responsibility towards neighboring communities of the construction site as well as mutual growth and development with LPN Team or trade partners. The communities and environment surrounding the construction site are also developed.
78 SUSTAINABILITY REPORT 2015
G5
GREEN Construction Process
OPERATION
The Company emphasizes the importance of environmental management not only in the construction site but also in the temporary accommodation of construction workers as well as neighboring communities in order to prevent and minimize the impacts and build positive relationship with the residents of nearby communities. Safety standards are strictly complied with for the safety of all related parties in parallel with the care for the quality of life of the construction workers.
Neighboring communities
Construction site
Temporary accommodation of construction workers
• Green Standard Checklist
Construction Site
In 2015, Green Standard Checklist is initiated as an operational standard in terms of project design and construction of LPN Team. The objective is to reduce pollution and minimize impacts of project development from the preparation of construction to the handover of the building in a concrete manner. The details of the Checklist have been prepared and the objectives are planned in collaboration with the designer, contractor and Green Building consultant. The compliance with the Checklist and quality of the operation is monitored on a monthly basis.
The Company ensures that the impacts from construction in terms of dust, noise, vibration and environment are minimized. For example, truck’s wheels are washed and cleaned before the truck leaves the construction site and innovations are developed to control dust on the construction site.
The project management standard is categorized into seven sections with the total of 73 topics with reference from the Building Control Act and Environmental Management System Standard. Section 1-5 are inclusive of environmental management issues and Section 6 and 7 covers safety management issues. The details are as follows:
79 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
5. Water spray is used to reduce dust particles from construction. Environmental Management
Section 1: Construction Preparation 1. The dust prevention fence of six-meter high is built around the site.
6. The wheels and trucks are washed before the vehicle leaves the site.
2. The speed limit of the vehicles in the construction site is controlled. The engine of the vehicle must be turned off when parked.
7. Concrete road around the construction site is built.
3. Working hours are limited.
4. A light signal indicating a danger zone is installed in front of the construction site.
8. A ditch around the project is dug. 9. The Company helps ease the impacts of construction in neighboring communities.
80 SUSTAINABILITY REPORT 2015
Section 2: Foundation and Pile Work 1. The project layout is prepared.
6. Light bulbs on the fence around the construction site are installed. 7. The length of the tower crane must not go beyond the construction area. 8. Water storage containers are provided
2. A board indicating the municipal engineering law and responsible architect is put up in front of the project.
9. Anti-landslide system is in place.
3. A complaint box is installed to receive complaints from the impacts of the construction. 4. An information board indicating the regulations in the construction site is put up. 5. Closed-circuit television cameras are installed.
10. The water is sprayed during foundation pile cutting process. 11. The soil surface is covered with a net to prevent erosion.
12. The quality of treated wastewater is monitored before disposal. 13. Trucks are covered to prevent dust during transportation. 14. Hazardous waste is appropriately controlled and disposed.
81 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
15. There are appropriate and sufficient general waste disposal corners. 16. Recyclable waste is collected. 17. Wastewater from construction is treated and managed. 18. The sediment trap is checked for garbage. 19. The construction site is regularly cleaned. 20. The level of dust particles is measured and ensured that it does not exceed the standard. 21. The level of noise is measured on every working day. 22. The average level of noise is controlled not to exceed 70 dB. The highest level must not exceed 115 dB. 23. The vibration in the construction site is controlled. 24. Avoid activities with loud noise. 25. The steel bending area and steel scrap storage area are separated from other materials. 26. The equipment are maintained.
4. There is a storage space for different types of chemicals.
5. The area and containers for mixing chemicals are prepared. 6. The area in the building is cleaned.
Section 3: Structural Work and Major Architectural Work 1. The building is covered by anti-dust canvas.
7. The canvas is used to cover the mixing drum on every floor. 8. Silo cement is covered to prevent dust pollution.
2. The construction materials are appropriately stored. 9. The materials and equipment of the system work are appropriately stored. 10. Insulation materials are appropriately stored. 11. The chemicals used in construction contain low volatile substances. 3. There is a storage room for construction materials.
82 SUSTAINABILITY REPORT 2015
Section 4: Indoor Architectural Work 1. There is a room for cutting tiles and other materials. Noise prevention kits are available for the workers.
Safety Management
The safety and occupational health standard and regulations are strictly complied with in all construction processes to ensure the safety of the construction workers and residents of neighboring communities. The details are as follows:
Section 6: Safety and Welfares in Construction Site 1. Security officers are on duty 24 hours. 2. Paints and enamel paints with low volatile substances are used. 3. Air conditioning hoses are covered. 4. Fan coil unit and air handing unit are covered.
2. Safety trainings are organized for construction workers.
Section 5: Preparation for Handover and Building Use 1. The air in the condominium unit is ventilated before it is handed over.
3. First-aid kits are available at the construction site.
83 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Morning Talk
is the activity organized every morning to discuss various issues related to the operation and construction process in order to build understanding of workers and provide them with knowledge about safety at work.
84 SUSTAINABILITY REPORT 2015
4. All construction workers must wear a safety hat and safety boots before entering the construction site.
5. A safety belt is used when the work is done in a place that is higher than 2 meters.
6. Fire extinguishers are installed. 7. A map of the location of fire extinguishers in the construction site is shown. 8. Fire drills are regularly organized.
10. Unauthorized persons are not allowed to enter the construction site.
11. A space for hanging personal stuff of the workers is provided.
Section 7: Safety and Welfare in the Temporary Accommodation of Construction Workers 1. An information board indicating the regulations in the temporary accommodation of construction workers is put up.
9. Safety officers are on duty in the construction site.
85 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
2. Personal information of migrant workers are collected and filed.
8. Hygienic restrooms are built.
3. Drugs are strictly prohibited in the construction site.
9. Wastewater treatment tank is provided to treat wastewater from the restrooms. 10. Fire drills are regularly organized. 11. Lighting a fire in the accommodation is strictly prohibited.
4. The environment and hygiene of the temporary accommodation of construction workers are enhanced. 5. Standard electrical appliances are used and the use of electricity in each room is monitored. 6. Quality of life of the children of construction workers are managed. 7. Water storage containers are provided.
86 SUSTAINABILITY REPORT 2015
In 2015, the Green Standard Checklist is implemented in 11 projects being under construction. The implementation of the Checklist in the projects is monitored as follows: Table 1: The Outcome of the Monitoring of the Implementation of the Checklist on the Prevention and Reduction of Environmental Impacts from Project Management Project
No. of Topics Implemented
Project Status (%) 1st Monitoring
Lumpini Park Nawamin-Sriburapa Lumpini CondoTown Romklao-Suvarnabhumi Lumpini Ville Onnut-Ladkrabang 2 Lumpini Township Rangsit-Klong 1 (Phase 2) Lumpini Place Boromrajchonnanee-Pinklao Lumpini Park Petchakasem 98 The Lumpini 24 Lumpini ParkBeach Cha-am Lumpini Ville Nakornin-Riverview Lumpini Mix Teparak-Srinakarin Lumpini Place Rama 4-Ratchadapisek
87 60 100 52 72 18 54 30 8
2nd
Monitoring
70 68
70 68
53 65 49 70 54 32 16 1
53 65 49 70 54 33 16 1
3rd Monitoring
4th Monitoring
70 68
70 68
Project completed.
Construction site is being prepared. EIA is submitted for consideration.
53 65 55 70 54 36 16 1
53 65 56 70 56 40 16 1
Table 2: Air Quality Monitoring in 2015 Project
The Lumpini 24 (Jan-Dec) Lumpini Park Rattanathibes-Ngarmwongwarn (Jan-Jun) Lumpini Park Suksawasdi-Rama 2 (Jan) Lumpini Place Srinakarin-Huamark Station (Jan-Mar) Lumpini Park Rama 9-Ratchada (Jan-Jun) Lumpini Park Petchakasem 98 (Mar-Dec) Lumpini Park Nawamin-Sriburapa (Apr-Nov) Lumpini Place Boromrajchonnanee-Pinklao (Apr-Oct) Lumpini Township Rangsit-Klong 1 (May-Dec) Lumpini CondoTown Romklao-Suvarnabhumi (Jul-Dec) Lumpini Ville Nakornin-Riverview (Nov-Dec) Standard Score
Air Quality TSP (mg/m3)
0.069 - 0.266 0.077 - 0.112 0.066 0.093 - 0.164 0.59 - 0.135 0.084 - 0.307 0.055 - 0.179 0.065 - 0.159 0.084 - 0.320 0.050 - 0.165 0.111 - 0.201 ≤0.331
PM-10 (mg/m3)
SO2 (mg/m3)
NO2 (ppm)
0.040 - 0.099 <0.002 - 0.030 0.016 - 0.037 0.032 - 0.072 0.001 - 0.018 <0.001 - 0.026 0.04 0.005 0.002 0.049 - 0.094 0.001 - 0.006 <0.002 0.022 - 0.084 0.001 - 0.015 0.002 - 0.021 0.03 - 0.117 0.001 - 0.051 0.001 - 0.052 0.025 - 0.074 <0.002 0.022 - 0.034 0.001 - 0.008 <0.001 - 0.046 0.039 - 0.109 <0.002 0.018 - 0.038 0.024 - 0.072 <0.002 0.011 - 0.024 0.067 - 0.097 0.003 - 0.006 0.017 ≤0.121
≤0.301
≤0.172
CO (ppm)
THC (ppm)
1.03 - 2.31 0.9 - 2.6 0.7 1.2 - 1.4 0.7 - 0.9 0.60 - 2.20 1.07 - 2.86 0.7 - 3.0 1.31 - 1.92 1.1 - 1.27 1.1 - 1.27
3.23 - 4.64 0.5 - 0.9 0.5 0.6 - 0.7 0.3 - 0.6 0.3 - 0.7 3.23 - 4.05 0.5 - 0.7 3.65 - 3.97 0.5 - 0.7 0.5 - 0.6
≤30.03
-
Reference: 1 Ambient Air Quality Standards, Notice of the National Environment Board No. 24, B.E. 2547 2 Nitrogenoxide Level, Notice of the National Environment Board No. 33, B.E. 2547 3 Ambient Air Quality Standards, Notice of the National Environment Board No. 10, B.E. 2540
From the monitoring of air quality in all project construction sites,
it is found that all the indexes monitored meet the air quality standards. However, the standard for Total Hydrocarbon (THC) has not yet been established.
87 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Table 3: Outcome of the Monitoring of the Level of Noise in 2015 Project
The Lumpini 24 (Jan-Dec) Lumpini Park Rattanathibes-Ngarmwongwarn (Jan-Jun) Lumpini Park Suksawasdi-Rama 2 (Jan) Lumpini Place Srinakarin-Huamark Station (Jan-Mar) Lumpini Park Rama 9-Ratchada (Jan-Jun) Lumpini Park Petchakasem 98 (Mar-Dec) Lumpini Park Nawamin-Sriburapa (Apr- Nov) Lumpini Place Boromrajchonnanee-Pinklao (Apr-Oct) Lumpini Township Rangsit-Klong 1 (May-Dec) Lumpini CondoTown Romklao-Suvarnabhumi (Jul-Dec) Lumpini Ville Nakornin-Riverview (Nov-Dec) Standard Score
Level of Noise Leq 24 hrs (dB(A))
Lmax (dB(A))
Noise (dB(A))
59.4 - 67.0 60.8 - 66.7 62 61.8 - 62.9 58.8 - 66.6 60.7 - 69.9 54.7 - 66.4 62.9 - 66.0 50.0 - 67.8 51.4 - 69.6 69.2 -69.3
92.7 - 108.5 90.9 - 105.4 95.7 92.6 - 99.6 98.2 - 99.9 93.9 - 112.1 86.1 - 109.0 89.4 - 99.5 82.1 - 108.7 78.1 - 108.1 99.3 - 112.1
6.4 - 24.3 9.9 9.9 9.9 9.3 - 9.9 3.9 - 16.9 6.8 - 18.1 9.9
≤701
≤1151
≤102
Reference: 1 Background Noise Level, Notice of the National Environment Board No. 15, B.E. 2540 2 Specific Noise Level, Notice of the National Environment Board No. 29, B.E. 2550
From the monitoring of noise level in all construction sites,
it is found that the average noise level in 24 hours and the maximum noise level both meet the standards. However, the maximum level of noise at The Lumpini 24, Lumpini Park Nawamin-Sriburapa and Lumpini Township Rangsit-Klong 1 exceed the standard of 10 dB(A).
Table 4: Outcome of the Monitoring of Vibration Level in 2015 Project
The Lumpini 24 (Jan-Dec) Lumpini Park Rattanathibes-Ngarmwongwarn (Jan-Jun) Lumpini Park Suksawasdi-Rama 2 (Jan) Lumpini Place Srinakarin-Huamark Station (Jan-Mar) Lumpini Park Rama 9-Ratchada (Jan-Jun) Lumpini Park Petchakasem 98 (Mar-Dec) Lumpini Park Nawamin-Sriburapa (Apr-Nov) Lumpini Place Boromrajchonnanee-Pinklao (Apr-Oct) Lumpini Township Rangsit-Klong 1 (May-Dec) Lumpini CondoTown Romklao-Suvarnabhumi (Jul-Dec) Lumpini Ville Nakornin-Riverview (Nov-Dec) Standard Score
Vibration Level Transverse (mm/sec)
Vertical (mm/sec)
Longitudinal (mm/sec)
0.127 - 0.925 0.381 - 1.180 0.508 1.27 - 1.54 0.508 - 1.400 0.803 - 1.650 0.064 - 0.600 0.508 - 2.290 0.225 - 0.950 0.275 - 0.900 0.508 - 1.270
0.375 - 0.925 0.127 - 1.410 1.14 0.508 - 1.9 1.140 - 1.900 0.874 - 3.560 0.318 - 1.800 0.508 - 1.910 0.175 - 1.050 0.175 - 1.150 1.9
0.127 - 0.775 0.508 - 1.900 0.508 0.889 - 1.65 0.635 - 1.650 0.635 - 4.570 0.064 - 1.250 0.508 - 1.520 0.250 - 0.775 0.250 - 1.080 0.635 - 1.540
5.00
Reference: Notice of the National Environment Board No. 37, B.E. 2553 Re: Vibration Measurement to Prevent Impacts on Buildings
From the monitoring of vibration in all construction sites,
it is found that the vibration level meets the standard (not exceeding 5.00 mm/s).
88 SUSTAINABILITY REPORT 2015
Table 5: Outcome of the Monitoring of Water Quality in 2015 Water Quality
Project
pH -
The Lumpini 241 (Jan-Dec) Lumpini Park Rattanathibes -Ngarmwongwarn2 (Jan-Jun) Lumpini Park Suksawasdi-Rama 22 (Jan) Lumpini Place Srinakarin -Huamark Station2 (Jan-Mar) Lumpini Park Rama 9-Ratchada2 (Jan-Jun) Lumpini Park Petchakasem 982 (Mar-Dec) Lumpini Park Nawamin-Sriburapa2 (Apr-Nov) Lumpini Place Boromrajchonnanee -Pinklao2 (Apr-Oct) Lumpini Township Rangsit-Klong 12 (May-Dec) Lumpini CondoTown Romklao -Suvarnabhumi2 (Jul-Dec) Lumpini Ville Nakornin-Riverview2 (Nov-Dec)
SS (mg/l)
6.84 - 7.77 2 - 32.5 7.3 - 7.8 14.2 - 28.2 7.5
18.6
3.80 - 7.50 18.7 - 26.5
TDS (mg/l)
BOD (mg/l)
TSS (mg/l)
G&O (mg/l)
TKN (mg/l)
Sulfide (mg/l)
(MPN/100 ml)
FCB
148 - 324 108 - 362
1 - 30 7.3 - 18
0 - 0.1 0 - 0.42
<2 - 7 2-6
0.8 - 33.0 12.4 - 25.5
<0.06 0
<1.8 - 240,000 0
272
7.5
0.37
1.6
18.4
0.086
188
0.5 - 428
0.5 - 125
0.21 - 0.42
1.3 - 3.8
18.4 - 26.5 0.032 - 0.5
48 - 125
7.2 - 7.6
21.7 - 30
156 - 431
7.2 - 18.4 0.22 - 0.42
1.8 - 6.4
12.3 - 28.3 0.067 - 0.5
74 - 250
7.3 - 7.6
12.5 - 29.5
168 - 388
7.3 - 18.4 0.08 - 0.34
2.1 - 6.9
2.4 - 20.7
0.023 - 0.7
233 - 697
7.15 - 8.05
2 - 26
202 - 420
1-7
<0.1 - 0.2
<2 - 2
1.4 - 8.6
<0.06
<1.8 - 7,900
7.2 - 7.6
8.2 - 28.2
107 - 467
7.2 - 18.8
-
0.7 - 8.2
6.69 - 8.05
2 - 28
250 - 358
2-7
<0.01
<2 - 9.8
1.5 - 9.8
<0.06
<1.8 - 3,300
202 - 412
1-3
-
<2
0.7 - 6.2
<0.06
<1.8
4.1 - 4.5
19.6 - 21.4
0.4 - 0.5
365 - 405
7.19 - 7.76 2.6 - 27.7
7.5 - 20.1 0.17 - 0.18
12.1 - 22.2 0.08 - 0.41
110 - 310
7.5
25.3 - 28.7
210 - 265
Standard Score 1
5.0-9.0
≤ 40
≤ 500
≤ 30
≤ 0.5
≤ 20
≤ 35
≤ 1.0
-
Standard Score 2
5.0-9.0
≤ 30
≤ 500
≤ 20
≤ 0.5
≤ 20
≤ 35
≤ 1.0
-
Reference: 1 Standard of the Control of Wastewater Disposal from Buildings (Type B: More Than 100 Rooms but Not Exceed 500 Rooms), Notice of the Ministry of Natural Resources and Environment B.E. 2548 2 Standard of the Control of Wastewater Disposal from Buildings (Type B: More Than 100 Rooms but Not Exceed 500 Rooms), Notice of the Ministry of Natural Resources and Environment B.E. 2548
From the monitoring of the quality of water in the final wastewater treatment tank before disposal in all construction sites,
it is found that all the indexes meet the standards. The standard for the control of fecal coliform bacteria has not yet been established. The monitoring is done based on the Standard of the Control of Wastewater Disposal from Buildings (Type A and B), Notice of the Ministry of Natural Resources and Environment B.E. 2548 and the Standard of Water Quality in Surface Water Sources, Notice of the Ministry of Natural Resources and Environment B.E. 2537.
89 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Summary of the Amount of Materials Used in Construction in 2015 (G4-EN1)
Projects handed over in 2015 Concrete 161,113 cubic meter
Steel 17,595 tons
Shutter board 850,116 sq.m.
Laminate 206,808 sq.m.
Post tension 417,990 sq.m.
Precast 153,537 sq.m.
Tiles 287,895 sq.m.
Water/waste water pipe 914,585 m.
Electrical wires/ electrical equipment 10,535,126 m.
Cement 385,919 cubic meter
Paint 1,815,181 sq.m.
Sanitary ware 10,663 sets
Plaster 874,365 sq.m.
Gypsum board 295,964 sq.m.
Light bulb 95,799 sets
Construction site area 477,156 sq.m.
No. of unit 10,599 units
90 SUSTAINABILITY REPORT 2015
2. Medical check-up in 2015
The medical check-up for construction workers is organized at Lumpini Park Nawamin-Sriburapa and is participated by 101 workers from Lumpini Park Nawamin-Sriburapa, Lumpini Ville Onnut-Ladkrabang 2, Lumpini CondoTown Romklao -Suvarnabhumi and The Lumpini 24. The check-up includes physical examination, chest x-ray, complete blood count, fasting blood sugar test, total cholesterol test, lung capacity test, eyesight test and liver function test.
Temporary Accommodation of Construction Workers Apart from ensuring safety in the temporary accommodation of construction workers, the Company also enhances the environment, occupational health and quality of life as well as promotes health of construction workers by organizing various activities. The activities to promote the quality of life of construction workers can be divided into two categories i.e. activities to provide moral support and activities to care for the sanitation and environment around the accommodation of construction workers. The details are as follows:
â&#x20AC;˘ Activities to Provide Moral Support to Construction Workers 1. Provision of free lunch and free haircut
â&#x20AC;˘ Activities to enhance the environment of the accommodation of construction workers 1. The accommodation of construction workers is prefabricated.
The cooking area is separated from the residential area to prevent fire incidents. It is piloted at Lumpini Ville Nakornin-Riverview.
The Company has always provided free lunch and free haircut for construction workers to raise their spirits and reciprocate their hard work. In 2015, the activities are organized in six projects, namely, The Lumpini 24, Lumpini Park Nawamin -Sriburapa, Lumpini Ville Onnut-Ladkrabang 2, Lumpini Place Boromrajchonnanee-Pinklao, Lumpini Township Rangsit-Klong 1 and Lumpini CondoTown Romklao-Suvarnabhumi.
Picture: Cooking area for construction workers at Lumpini Ville Nakornin-Riverview
91 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
2. Child care service
Child care service is provided to care for small children of the construction workers during working hours to ensure their safety. Construction workers are able to leave their children at the Child Care Center located in the same area as their accommodation free of charge.
Neighboring Communities (G4-SO2) High-ranking executives of the Company will visit neighboring communities and related governmental agencies to build understanding and good relationship with them, particularly the residents of the houses or buildings adjacent to the project and are directly affected in terms of noise, dust and traffic. It will be ensured that the construction will be done in accordance with the project design and the given timeframe. 3. Mosquito spray in the accommodation of construction workers
â&#x20AC;˘ Care for neighboring houses
Outdoor spraying with insecticides for mosquitoes is done in four projects i.e. Lumpini Township Rangsit-Klong 1, Lumpini Park Rama9-Ratchada, Lumpini Park Rattanathibes -Ngarmwongwarn and Lumpini Place Boromrajchonnanee -Pinklao.
1. The environmental standard of the construction site and neighboring houses is established to be suitable with the project environment and area. 2. The neighboring residents will be informed three days in advance when there is to be noisy activities from the construction site such as pile work. 3. The hours that the work with loud noise can be operated are limited between 8.00-19.00 hrs. Noisy activities will also be avoided on weekends so that neighboring communities will not be disturbed. 4. Officers of the Company will visit the neighbors to build a good relationship with them and listen to their problems and concerns over the construction impacts. 5. A suggestion box is put up in front of the project to provide an opportunity for the neighboring residents to make complaints or suggestions.
4. Maintenance of the accommodation of construction workers
The Company has regularly monitored and maintained the environment around the accommodation of construction workers in each project. Broken parts or equipment will be repaired.
92 SUSTAINABILITY REPORT 2015
â&#x20AC;˘ The guideline for the care for neighboring houses to minimize the impacts from construction (G4-EN34) Operational Process
Timeframe
Construction Department
1. Survey the environment around the project
Before pile work
Start
Before the construction, the environment around the project is surveyed, the map of neighboring houses indicating house number, name of owner and telephone number is prepared and the officers visit the neighboring houses to introduce themselves.
Contractor
Survey the environment Compile preliminary information
Before pile work/ Visit neighboring residents to build good relationship Weekly
2. Build good relationship with neighboring residents
Build relationship with neighboring residents
with them, listen to their concerns and ask about the impacts.
3. Establish pollution prevention measures Put up canvas for dust and noise prevention, clear up the site, build temporary houses for workers, etc.
Before pile work
4. Monitor the environment and follow up the progress
Monitor the surrounding environment and communities
Regularly monitor the surrounding environment and take immediate action when a problem is found.
5. Take action to solve the problem Should there be any impacts or damages caused by the construction, they must be resolved immediately.
Establish pollution prevention measures
Within one day
No problems found
6. Compile the information 6.1 Feelings of neighboring residents 6.2 Problems and solutions 6.3 Points for improvement and outcome
7. Assess the performance
Compile information
Monthly Assess the performance End
Implement the measures
Problems found
Take action to solve the problem
93 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
â&#x20AC;˘ Management of relationship with neighboring communities Apart from minimizing the impacts from construction, the Company would build relationship with neighboring communities by coordinating with the leaders of the communities and surveying the common area of the communities as well as other agencies surrounding the project site before the construction starts. Special attention will be given to the area adjacent to the project site or sensitive area. Information on the concerns over environmental problems, possible impacts from construction and social and environmental activities that the communities would like the Company to support will be collected. The Company will organize environmental and social activities in the communities to build good relationship with them and minimize the number of complaints. In 2015, the Company develops the area around Lumpini Mixx Teparak-Srinakarin which is being constructed. The area in Soi Teedintong 6 community is improved. The details are as follows: 1. The reading corner of the community is improved.
The cement floor is leveled out, reading tables and chairs are provided and bookshelves, information board and medicine cabinet are installed.
Picture: The reading corner of Soi Teedintong 6 community before and after improvement
2. The playground, football field and exercise area are improved and used
as a common area to organize activities in the community.
Picture: The playground in Soi Teedintong 6 community before and after improvement
94 SUSTAINABILITY REPORT 2015
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G5
Fire Accident
at the Accommodation of Construction Workers at Lumpini Township Rangsit-Klong 1
On the afternoon of 25 July 2015, the area around the accommodation of construction workers at Lumpini Township Rangsit-Klong 1 which is locating near the construction site catches fire. The fire has spread for over two hours before being controlled. The fire breaks out again at 18.00 hrs. and is finally put out at 19.00 hrs. Although there is no casualty, the accommodation of 1,200 rooms and one nearby house are burnt down, affecting 2,080 construction workers. The fire also causes damage to nearby trees and cracks many windows. However, it does not cause any damages on the building.
95 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Since the Company has always focused on the safety and occupational health of the construction workers, the management of such incident is done in an efficient manner. The fire scene is secured for 45 days and security officers are on duty around the fire scene and the temporary accommodation. The following actions are taken to support the victims of the fires:
Provide accommodation and clothes to the victims.
Build new accommodation for construction workers in nearby site.
Provide ready-to-eat meals and drinking water to the
Provide advice and guidance to the victims
victims and install water purifiers to ensure that there are sufficient clean water for use.
in case they have any problems or concerns over their families and belongings or need mental support.
Provide mobile toilet trucks and water trucks at the site.
Coordinate with the residents of the neighboring houses
that are affected by the fire.
Provide 24-hour first-aid and medical care.
Furthermore, the Company has revised the fire prevention and protection emergency plan to include all levels of severity of fire incidents. The responsible person in case of fire is clearly identified. The accommodation of construction workers and nearby area is monitored on a regular basis. Other related activities are organized such as a meeting to discuss fire prevention measures and trainings on the cause of fire and fire prevention and protection. These are precautionary measures to minimize damages and loss from fire accidents.
96 SUSTAINABILITY REPORT 2015
G6
Community Management The responsibility of real estate developers should not be ended when the “residence” is handed over to the customers. The building and environment should also be managed and maintained afterwards. However, the Company has realized that there are more to project development and thus developed building management guideline and community management strategy to promote gracious culture and harmony of living together in the society. During the past 26 years, the Company has created and handed over a “home” to members of more than 100,000 “Lumpini” families and taken care of the environment and quality of life of the residents and neighboring communities via “Vibrant Community” strategy. The Company does not only ensure the safety and standard of the equipment but also the safety of the community, the happiness of the residents as well as environmental awareness of the residents on a regular basis in accordance with the F-B-L-E-S+P guideline. It is developed from extensive community management experiences with the aim to deliver a great quality of life, environment and society to the residents. The details are as follows:
97 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
E
Environment Management
S
Security & Safety Management
บร�หารชุมชน
COMMUNITY MANAGEMENT
F
Facility Management
B
Budget Management
L
It is to maintain the efficiency of common properties whether it be architectural structure, convenient facilities and various systems in the building e.g. elevator, electricity generator, electrical system and sanitation system to ensure that all components of the building function normally and are safe to operate.
It involves the management of budget for condominium juristic person to be in line with the policy approved by the Annual General Meeting of Joint Owners as well as the management of the stability of the fund for the financial stability of the community. A financial report that is easy to understand, transparent and auditable will also be prepared. Life Quality Management
It is the management of the quality of life of the residents and promotion of compliance with the regulations of condominium to entail the harmony of co-existence in the society and “togetherness, care and share” culture. Various activities promoting gracious culture in the society are organized and help build good relationship in the family and between “Lumpini” members.
The Company puts very much emphasis on environmental issues. Green Clean Lean concept is promoted and various activities are implemented such as tree planting activity, increase of green space in the community and neighboring community, waste segregation program, waste water treatment, reuse of treated waste water in the project, energy conservation campaign and promotion of renewable energy.
The Company has established a strict performance standard in terms of safety from the design of the project layout. The standard of the security officers and safety equipment such as closedcircuit television, alarm system and communication system is ensured. Participation of community members and related government agency is also promoted to enhance the utmost security of the members of the community. People Management
P
The Company gives importance to the management of related persons in community management whether it be Community Management Department, Juristic Persons Committee or the residents to ensure their satisfaction. The problems and conflicts between residents that may affect the community are also managed. The focus is on the development of attitude and skills of the Community Management Department and the means of communication to increase knowledge and understanding about community management of Juristic Persons Committee especially the Chairman so that they are on the same page. The management of human resources capacity will play a role in promoting the efficiency of the F-B-L-E-S strategy. The sustainable community will comprise the following people: • Internal staff • Residents • Juristic Person Committee
98 SUSTAINABILITY REPORT 2015
Internal staff i.e. executives, Community Managers and the management team, all of whom play an important role in promoting the sustainability of the community. The Company has developed their capacity through various training programs as well as promoted service culture for the success of the â&#x20AC;&#x153;Vibrant Communityâ&#x20AC;? strategy.
G6
Residents i.e. the residents in
Juristic Person Committee
the project inclusive of the joint owners and renters. Different activities are organized by the management to promote the concept of co-existence in the community, reduce environmental impacts, promote a good society and create vibrant community.
i.e. the representatives of the stakeholders in the project. They drive forward the process of implementing the concept of vibrant community in the project by building the knowledge and understanding of the Chairman and committee members.
GREEN Community Management
OPERATION
Management of Quality of Life â&#x20AC;˘ The Development of a Living Library in Community
The Company realizes the importance of reading and learning and thus has developed a multi-functional room in each community to be a living library where the residents are able to learn, mingle with each other and organize activities together. The Company has signed an MoU with TK Park in 2011 to co-develop and manage the library in the community. Trainings are organized by TK Park for staff in Community Management Department focusing on books management, the development of a living library, the technique for organizing reading promotion activity and library usage in children and adults.
99 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Moreover, the library is renovated to attract the residents to use the library more. There are childrenâ&#x20AC;&#x2122;s corner and computer corner where the learning programs from TK Park are available. New books are added into the library and categorized. Reading and learning promotion activities are regularly organized to promote the use of the library. In 2015, there is a plan to allocate a budget of the Company to improve the libraries developed before 2011 in the following four communities to become living libraries: 1) Lumpini Place Narathiwas-Chaopraya 2) Lumpini Place Rama 3-Riverview 3) Lumpini Place Narathiwasratchanakarin 4) Lumpini Place Ratchada-Tapra
Before
After
The improvement of the library in Lumpini Place Ratchada-Tapra
Before
After
The improvement of the library in Lumpini Place Rama 3-Riverview
100 SUSTAINABILITY REPORT 2015
Environmental Management GREEN
3
• Green Space Management
The Administrative Officers in all communities of the Company are also responsible for managing green space in the project for the benefit of the residents. The outcome of the green space management in 119 communities managed by the Company in 2015 is as follows: 1) The green space is well-maintained: 115 communities 2) The green space has increased: 3 communities 3) The green space has decreased: 1 community*
communities
1*
The green space has increased.
community The green space has decreased.
115
communities The green space is well-maintained.
110 communities
“Plant & Share Activity” is organized.
It is as a result of the inexperience of the contractor. The juristic person office is recruiting a new contractor to improve the green space in the community.
Plant & Share Activity
In addition to green space management, the “Plant & Share Activity” has been organized for the second consecutive year to encourage the residents to participate in increasing the green space in the condominium units and common area. In 2015, the activity is organized in 110 communities, exceeding the target of 105 communities.
101 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
CLEAN
(G4-EN23)
â&#x20AC;˘ Waste Management
The Company stresses the significance of efficient waste management system. It is the crucial policy to promote the great environment appropriate for living and minimize environmental impacts. The quality of waste containers in the community is standardized. In 2008, the waste containers are categorized for each type of waste. At present, there are five types of waste containers in each community i.e. containers for kitchen waste, general waste, recycle waste, hazardous waste and beverage cartons.
The total of
24,486.73 kilograms of recycle waste is collected.
17 communities The total of 24,486.73 kilograms of recycle waste is collected from 17 communities participated in the project from January â&#x20AC;&#x201C; November 2015, generating the income of 91,593.75 THB.
generating the income of
91,593.75* THB
*The income generated from selling recycle waste will be used for different purposes in each project depending on the meeting resolution of the committee of the project.
8communities Apart from managing each type of waste, the Company also promotes participation and environmental awareness in all sectors. Trainings about residential waste management and disposal of hazardous waste are also organized to build knowledge and understanding of staff in the Community Management Department. There is also a campaign to enhance the understanding on waste segregation of the residents through manuals, brochures and various activities and encourage them to segregate waste.
The total of 5,208 pieces of hazardous waste is collected from eight communities participated in the project from January â&#x20AC;&#x201C; November 2015.
The total of
5,208 pieces of harzardous waste is collected.
In 2015,
the Company has set up recycle waste containers in 27 communities, from the target of 26 communities.
102 SUSTAINABILITY REPORT 2015
Other activities organized to raise awareness of waste segregation are as follows: 1. Waste Segregation Activity
2. Bottle for Egg Activity
The objective of the activity is to provide knowledge on waste segregation and encourage the residents to efficiently segregate waste. Waste segregation manual is distributed to all attendants of the activity. In 2015, the activity is organized in ten target communities.
The activity is organized to promote waste segregation in the project. The waste collected can be exchanged for eggs. The recycle waste collected from the activity in each community will be sold. The income generated will be used to develop the community. In 2015, the activity is organized in 110 communities.
Waste Segregation Activity in a Project Developed by the Company
Bottle for Egg Activity
LEAN â&#x20AC;˘ Resources Management in Community
At present the use of resources have increased in accordance with the population growth. The expenses associated with wasteful use of resources in the community are very expensive. Therefore, to reduce the use of resources is one of the community management policies to help reduce management costs as well as the use of resources in the country. The resources management in community can be divided into water management and energy conservation. 1. Water Management (G4-EN10)
Wastewater will be treated and tested before discharged. At present, the wastewater of the total of 92 communities is managed and treated before disposal. The wastewater treated in 87 communities pass the standard criteria and that in five communities fail to meet the standard criteria. In 14 communities, the quality of treated wastewater is not tested because it is treated somewhere else. In 50 communities, the treated wastewater that passes the standard criteria is reused for watering plants, cleaning streets and cleaning wastewater tanks. The total of 121,762.28 cubic meter of water is saved.
The quality of treated wastewater
watering plants
The total of
121,762.28 The wastewater treated
87
communities
50 communities
the treated wastewater pass the standard criteria. that passes the standard criteria is reused from 92 communities
cleaning streets
cleaning wastewater tanks
cubic meter of water is saved.
103 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
2. Energy Conservation (G4-EN6)
The Company realizes the importance of energy conservation and has implemented a campaign for communities to use LED light bulbs in place of fluorescent ones in the common area. In 2015, the total of 75 communities participates in the campaign, saving 261,199 units of electricity or equivalent of 966,400 THB.
Example of LED light bulbs used in the project
Candle Park Activity
The Company has also encouraged the juristic persons to turn off the lights in the common area (parking lot and elevator) for one hour per day. In 2015, the total of 108 communities participates in the activity, saving 21,443.56 kw of electricity. In addition, the Company invites the residents to participate in the “Earth Hour” activity and turn off the light for 1 hours from 20.30-21.30 hrs. The total of 108 communities participates in the activity, saving 28,106 kw of electricity. During “Earth Hour,” various activities are organized in the communities such as Music in the Park, Flash Light Market and Candle Park Activity.
Earth Hour Activity
The total of 1.5 hours per day
49,549.56 kw of electricity is saved
183,296.37 THB Saving
Turn off the light in the common area
21,443.56 kw of electricity
Music in the Park
(parking lot and elevator)
108 communities
1 hour per day Flash Light Market
Saving
Residents to participate in the “Earth Hour”
28,106 kw of electricity
During “Earth Hour”, various activities are organized in the communities.
Candle Park Activity
104 SUSTAINABILITY REPORT 2015
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Vibrant Community Model At present, living in residential condominium has become more popular. However, people in the city usually spend most of their time at work and thus barely have time to be with their family, make friends with their neighbors or participate in cultural activities in the society. The “Vibrant Community” concept is thus originated with an aim to create a community in which the residents have great quality of life, care for each other and depend on one another. The strength of the community is derived from the commitment of all residents. The “Vibrant Community” concept has continuously been developed from extensive experiences of the executives of the Company for more than 20 years. F-B-L-E-S+P strategy has then been developed to enhance the efficiency of the management of community as well as to be a communication channel among the Management, Juristic Person Committee and the residents. In 2013, the Company established the concrete standard criteria for each aspect of the strategy in order for the communities to grow and co-exist in a sustainable manner. It is the origin of “Vibrant Community Model” or the community with concrete “Vibrant Community” management standard. The standard of “Vibrant Community Model” is as follows:
Community efficiency standard
Physical standard
• Management Criteria
F B L E S
Facility Management
Budget Management
90%
No. of units
≥ 1,000
95%
No. of residents
≥ 70%
Establishment of community
≥ 1 Year
Life Quality Management
85%
Environmental Management
90%
Security and Safety Management
95%
Assessed by the Community Quality Assurance Department (CQA)
• Satisfaction of related parties in community efficiency
P
People Management - Co-owner - Juristic Person Committee
Assessed by the Customer Experience Management Department (CEM)
85%
105 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
In addition, the Company encourages the residents in each community to take part in building a unique characteristic of their community to enhance “real pleasure of living.” At present, 15 communities have passed the standard criteria and become a model community. There is a plan to encourage all communities to improve and upgrade the management of their community in order to achieve the standard of a model community. The concept will also be further developed to create a concept of “Vibrant Township Model”.
106 SUSTAINABILITY REPORT 2015
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Seminar of Chairman
of Juristic Person Committee The Seminar of Chairman of Juristic Person Committee has been initiated in 2007 for Chairman of Juristic Person Committee and representatives of stakeholders living in all projects to brainstorm, share experiences and exchange opinions to jointly develop their community as a “Vibrant Community.” At present, there are more than 100,000 families living in “Lumpini” community with the culture of “togetherness, care and share.” In 2015, the 9th Seminar of Chairman of Juristic Person Committee is organized and theme of the seminar is “Vibrant Community for All.” Thai Health Promotion Foundation has supported the seminar by sharing knowledge on promotion of health, development of quality of life and building of great environment for health promotion. It is brainstormed and discussed how every “Lumpini” community could become a “Vibrant Community for All.” Furthermore, the Company in collaboration with Thai Health Promotion Foundation would develop the capacity and skills of Community Managers in promoting health among the residents of the community via L.P.N. Academy.
Vibrant Community is Lumpini Community in which the residents live happily together with appropriate components, great quality of life, society, environment and awareness of peaceful co-existence and care and share culture.
107 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
As a result of the seminar, the main factors for the success of the development of vibrant community for all are summarized as follows: • The role of juristic person committees and representatives of joint owners in monitoring and supporting community management. • Collaboration from joint owners, members of the community who promote “togetherness, care and share” culture. • Service value derived from the efficiency of the community management strategy (F-B-L-E-S+P) of the Management.
“Vibrant Community”
F B L E S+P
All communities aim to improve the physical characteristics of the projects both in the condominium units and common area. The development process will be communicated to the residents via various channels and activities will be organized in each project to promote the concept.
108 SUSTAINABILITY REPORT 2015
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Lumpini Family Day G6 Activity LPN Family Day activity was organized for the first time in 2004 at Lumpini Park, the origin of the name “Lumpini” brand in order to express our gratitude to all Lumpini members and bring them happiness. From being a small-scale activity participated by 3,000 members that day, the activity has been gradually expanded to involve more than 10,000 participants. There is a wide range of activities including run-walk for health, Lumpini sports, Dharma in the garden and music in the park performed by musicians from LPN Ruamjai Band Club. Other entertaining activities are outdoor film screenings, concert and activity booths. We also have not forgotten to share happiness with underprivileged children from many foundations and give back to the environment and society. In 2014, the title of the activity is changed to Lumpini Family Day so that it becomes the activity of both Lumpini members and the general public. The activity is originated from the concept of “togetherness, care and share” culture of living emphasized by the Company.
109 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
From being a small-scale activity participated by 3,000 members that day, the activity has been gradually expanded to involve more than 10,000 participants.
Caring & Sharing
Togetherness
110 SUSTAINABILITY REPORT 2015
3 OUT PROCESS
P.111 P.114
Environmental and Social Activities of the Company Environmental and Social Activities of Lumpini Volunteer Clubs
111 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Environmental and Social Activities The Corporate Environmental and Social Responsibility (CESR) Out Process of the Company puts emphasis on awareness that starts from within the organization and communities developed by the Company before being extended to the society at large. The collaboration from all stakeholders such as staff, customers and business alliances are essential, as the saying goes, “Great environment and society must begin with us. When we are ready, we will promote it among communities developed and managed by us and then surrounding communities (From Corporate ESR to Community ESR)”. The concept is the origin of the community management policy which aims to create “Vibrant Community” in all projects developed by the Company and to be a leading example for other real estate business operators. The environmental and social activities (out process) are implemented by the Company and Lumpini Volunteer Clubs.
Environmental and Social Activities of the Company 1. Blood Donation Activities Environmental and Social Activities of the Company
This is the Company’s major social activity in collaboration with the National Blood Center, Thai Red Cross Society that has been continuously implemented for almost 20 years since 1996. The first blood donation mobile unit was situated at Lumpini Tower. Later, the Company thought that other projects developed by the Company could also become the center of blood donation from the residents and general public so the mobile unit is established at other projects as well. The Company will compile the information on the amount of blood received and personal information of the donors as a database to be used in the promotion of the organization of the next activity. Also, it is to build a database of blood donors so that in case of emergency when blood is urgently needed, the Company will be able to contact the blood donors and ask them to donate blood again. At present, blood donation mobile units are available in six projects i.e. Lumpini Tower, Lumpini Sukhumvit 77 projects, P.S.T. projects, Lumpini Ramindra-Laksi projects, Lumpini CondoTown Bodindecha-Ramkamhaeng and Lumpini CondoTown Ramindra-Nawamin. Blood donation activities are organized every three months. In 2015, the total of 24 activities are organized during the whole year. The total of 2,857 blood units is received or equivalent to 999,950 CC of blood. These are 38 more blood units received than those in 2014 which received 2,667 blood units that are used to help around 10,668 patients (350-450 CC or 1 unit of blood can help save four patients). The details are as follows:
Blood Donation Activity is the Company’s major social activity that has been continuously implemented for almost 20 years.
The total of
24 activities
are organized during the whole year.
The total of 2,875 blood units is received or equivalent to
999,950 CC of blood.
The total of
11,428 patients received the blood.
112 SUSTAINABILITY REPORT 2015
In addition, the Company has promoted the activity via SMS, vinyl posters and leaflets to inform the public of the date, time and venue of the blood donation activity. The blood donation calendar is also produced each year. Souvenirs are produced and given out to blood donors who donate blood for certain number of times to motivate them to donate more.
Picture: Souvenir for donors who donate blood for four times in 2015
2. Relationship Building with External Organizations Waste Segregation Promotion
The Company promotes the waste segregation campaign to other organizations by distributing recycle and hazardous waste containers which are similar to those used in the projects developed by the Company together with the waste segregation manual to government agencies and organizations, most of which are in the same area as the projects of the Company. In 2015, the Company sponsors 27 recycle waste containers and 11 hazardous waste containers for 12 government agencies. The details are in the table below. Table: Recycle and hazardous waste containers distributed to government agencies Organization/Agency
Bangkhae District Office Dusit District Office Kannayao District Office Wangtonglang District Office Bangplad District Office Bangna District Office Patumwan District Office Praves District Office Ladkrabang District Office Suanluang District Office Public Health Service Center 41 Klongtoey Pradabod Foundation Total
Recycle Waste Hazardous Waste Container (Set) Container (Set)
1 1 1 1 1 3 1 5 5 5 1
1 1 1 1 1 3 1 -
1
1
27
11
113 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Community and Government Agency Development
In 2015, the Company has improved and developed four government offices i.e. Bangkhae District Office, Suanluang District Office, Dusit District Office and Huamark Police Station. before
Merit Making Activity at Wat Nong Jang (near Lumpini ParkBeach Cha-am)
The Company takes part in a merit making activity organized on 15 May 2015 at Wat Nong Jang, Cha-am, Petchaburi province (near Lumpini ParkBeach Cha-am) to co-sponsor the construction of the sermon hall. The total amount raised is 666,999 THB, 312,759 THB of which is the donation raised from staff and business alliance and 354,240 THB is the donation for new ceilings, windows and curtains.
after
The total amount raised is Huamark Police Station before and after improvement
666,999 THB.
3. Questionnaire on EIA The project consultant company visited the neighboring residents of Lumpini Place Rama 4-Ratchadapisek to distribute the questionnaire and compiled the information for the preparation of the Environmental Impact Assessment (EIA) report from 09.00-12.00 hrs. at the Crown Property Bureau Building 26. The Society and Environment Management Department together with the Project Management Department had also provided free haircut, lunch and dessert for the 300 participants.
Budget for Environmental and Social Activities of the Company
(G4-EN31)
Budget for environmental activities
Budget for social activities
2,528,627.12 THB
6,611,443.85 THB The great environment and society starts with ourselves and is extended to the communities we develop as well as the society at large.
114 SUSTAINABILITY REPORT 2015
Environmental and Social Activities of Lumpini Volunteer Clubs Environmental and Social Activities of Lumpini Volunteer Clubs
The Company promotes and supports environmental and social activities organized by the residents and joint owners in accordance with the concept of “Corporate CESR to Community CESR.” At present, there are organized groups and volunteer clubs known as “Lumpini Volunteer Club.” In 2015, Lumpini Volunteer Clubs have organized the total of 24 environmental and social activities as follows: Clubs
Activity
Vibrant Community Lumpini Sampan Lumpini Khon Arsa
Ruampon Khon Jaidee Lumpini Arsa Pannamjai Lumpini
Lumpini Walk-Run for Health Activities co-organized by five Lumpini clubs Ruamjai Band Club (music event) Staff’s voluntary activity
Total
1. Mangrove forestation and sailing activity 2. Activity at Ban Tam Hin Border Patrol Police School 3. Provision of free lunch for disabled children 1. Save Sea Turtles: Save Thai Ocean Year 2 2. Elephant feeding activity 3. Forestation activity 1. Development of Ramindra Soi 3 2. Mae Pim beach cleaning activity 3. Tree planting activity in Petchaburi province 1. Forestation, crab releasing and ecology sailing activity 2. Relationship building activity between Lumpini CondoTown Ramindra-Nawamin and Lumpini CondoTown Ladplakao 3. Activity at Sodesuksa School, Nakhonpathom province 1. Lumpini Walk-Run Activity Family Day 2. Walk-Run activity on Mother’s Day 2015 3. BKK Marathon 1. Lumpini Volunteer Mind Develop Suan Lum 2. Donation for the victims of the earthquake in Nepal 3. Forestation activity at Wangnamkeaw 1. Bangkok School for the Blinds 2. Foundation for the Better Life of Children 3. Savangkanives, Thai Red Cross Society 1. Sharing Bikes for Kids Year 2 (Petchaburi province) 2. Sharing Bikes for Kids Year 2 (Nakorn Nayok province) 24 Activities
The donation made for environmental and social activities from five Lumpini Volunteer Clubs is
854,713.00 THB.
115 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Togetherness
116 SUSTAINABILITY REPORT 2015
4 AS PROCESS
P.117 P.126
L.P.N. ACADEMY SOCIAL ENTERPRISE
117 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
L.P.N. ACADEMY In order to respond to rapid expansion of the business of the Company, the capacity and professionalism of staff must quickly be built and developed. The challenge is to enhance the competencies, knowledge and skills of staff so that they would be able to efficiently and effectively perform their duties and be prepared to achieve career growth in the future, enabling staff to conform to a policy and direction of business operation of the organization. The executives have thus established “L.P.N. Academy” in 2013 to manage human resources development in a systematic manner in accordance with the following vision:
• Highly capable staff who have service-mindedness, integrity and collaboration skills.
• Professional operation
We Create Passionate Professionals by LPN Values Towards Sustainable Development.
with Lateral Thinking, Cost with Quality, Business Alliance and Speed with Quality.
• Passion in what they do. In order for an organization to be successful amidst rapid and constant changes in economic situation and intense market competition, it must be supported by all staff who are the vital driving force towards steady and sustainable development and growth. The Company has thus put stress on human resources management and development, fostered organization values as well as carried on organization culture. It is only because our personnel is our most valuable resource.
The Company has established a policy to promote learning of staff indicating that all staff must receive an opportunity to learn and develop themselves. No less than 85% of staff must be developed and attend more than seven days of training per year in order to promote the atmosphere of a learning organization. In 2015, 87% of staff has attended seven days of training per person per year or more. The guideline for staff training and development and promotion of learning in the organization of L.P.N. Academy is as follows:
1. Leadership Competency Development Competency Based Development has been applied in the development of human resources of the Company for more than five years, from the development of Functional or Professional Competency to Leadership Competency Development. The total of 60 middle managers and high-ranking executives (Level 8 - Level 13) have been developed. The six leadership competencies are as follows: 1. Envision the Future 2. Strategic Execution 3. Driving Change 4. Innovation Mindset 5. Motivating & Leading People 6. Interpersonal Relationship
118 SUSTAINABILITY REPORT 2015
In 2015, the entrepreneurship competency of the executives is developed. % 100 80 60 40 20 0
75.70 77.71 77.94
76.00
1. Envision the Future No.1
81.85 82.65 74.00
3. Motivating & Leading People
2. Strategic Execution
No.2
80.83 80.97
73.25
81.48 79.68
4. Interpersonal Relationship
71.50
78.07 74.00
5. Driving Change
67.25
75.54 73.80
6. Innovation Mindset
No.3
Result of the 3rd Leadership Assessment in 2015 : The average score of the six competencies is 78.17%. The result of the assessment is better than the first one (73%) which is used as the benchmark for development. However, there are three competencies that should be developed further, namely, Innovation Mindset, Driving Change and Envision the Future. L.P.N. Academy, together with the executives, will prepare the competency development plan for the executives to bring about changes and sustainable growth of the organization.
2. Creating an opportunity for staff to regularly develop their capacity, attend trainings and manage knowledge (G4-LA10) L.P.N. Academy and the executives have prepared the “Training and Development Plan” for staff to allocate time to develop themselves along the guideline of Competency Based Development. The curriculum includes the training on core competencies of the organization (CLASSIC), orientation for new staff and LPN SERVICES training course. It also includes the courses aiming to raise awareness on the transparency and integrity of the operation which is in line with one of the core competencies of the Company i.e. Integrity. Furthermore, there are courses in support of the government’s anti-corruption policy such as Integrity and Ethic for Business Training attended by 93% of the executives and Integrity and Ethic for Working People attended by 89% of staff. The Academy also focuses on the development of competencies of all level of staff in terms of lateral thinking and leadership. The learning process is developed to include the training transfer which means that learners are able to transfer their knowledge and skills learned in a training session back to their jobs. The learning ratio of 10 : 20 : 70 is used to encourage staff to change their behaviors in consistence with the objectives of the training. The Seeds: Idea Suggestion Project is initiated as a tool to promote action learning which is a training process in which staff perform an activity and then study it in order to improve their performance. Action learning is a group-based learning in which staff get into groups to study problems that are of interest to them and affect the organization and take action to solve the problems and reflect upon the results. Experiences sharing session, team meeting and brainstorming session with supervisors and/or colleagues are also parts of the learning process.
119 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Learning Ratio of 10 : 20 : 70 (G4-LA10) Learning Ratio Goal
Level
10%
(Formal Training)
20%
(Learning from Others)
70%
(On The Job Trainging)
1-4 (Operational Staff) 5-7 (Supervisor)
To develop an effective operation and supervisor
• Creative Thinking Course for Meeting with colleagues in Performance Improvement the department, from other • Participation in The Seed: departments and supervisor Idea Suggestion Project
Implementing the project, compiling information, summarizing the outcome of the implementation.
8-9 (Middle Managers)
To develop a leader in generating operating results
Unlocking your Leadership Potential Course
10-13 (High-Ranking Executives)
To develop a leader in generating business results
Leadership Greatness Course Project Presentation
Following up the work and providing recommendations to improve the project. Developing and improving the project as proposed in the training course.
Brainstorming project development ideas with the team Sharing knowledge with the team
Community Service Officer Training The training focuses on the development of more than 1,100 Community Service Officer and is inclusive of the four strategic plans comprising professional training to build the professional attitude, skills and knowledge in cleaning services and related work. The aim is to allocate all cleaning services in “Lumpini” community to Community Service Officers as well as to organize career training and promote further education among staff and their family members in order to upgrade their quality of life and enable them to live in the society with pride, dignity and happiness. In 2015, the Academy has organized various training courses for Community Service Officers as follows:
• Strategic Plan 1
• Strategic Plan 3
Promote Basic Education: Promote education among Community Service Officers by encouraging them to continue their study in the non-formal education system from Prathom 6 to Higher Vocational Level. The education of 42 staff is supported.
Promote Service Culture: Promote and build service values in line with S-E-R-V-I-C-E-S culture and develop good personality. There is the total of 100 participants.
• Strategic Plan 2
Promote Professional Experiences: Provide knowledge in adding values and improving the quality of life to staff and their families e.g. DIY healthcare and Thai traditional massage training. There is the total of 175 participants.
Build Professional Capacity: Increase knowledge and skills as an effective supervisor, the knowledge in cleaning and community safety. There is the total of 110 participants.
• Strategic Plan 4
120 SUSTAINABILITY REPORT 2015
The Development of LPN Team, Design Team and Construction Team (Core Competency: Alliance) The development focuses on the sharing of knowledge and skills that correspond with Q-C-S-E-S+P strategy. Knowledge sharing session, executive sharing session and site visit are organized on a monthly basis for staff of LPN and business alliances (LPN Team) to exchange working experiences, share success stories and lessons learnt in order to standardize the operational framework and improve their knowledge in a systematical manner. The outcomes of the trainings are as follows:
LPN & LPN Team Sharing activity to exchange working experiences and learning is organized monthly. There is the total of 12 sessions with 75 participants per session.
Executive Sharing session is organized for the executives to share their knowledge and experiences on various issues e.g. 7 Thinking Framework, 3Ps, 6 Green LPN, Vibrant Community For All and communication for results, etc. There is the total of 410 participants.
Trainings to increase professional knowledge e.g. Applied Mind Map for Business, BIM, Ground Structure, Safety Officer at Executive Level, Safety Officer at Supervisory Level and Safety, Occupational Health and Working Environment Committee. There is the total of 630 participants.
Outcome of the Training Per Year Per Staff by Level and Gender 2015 Staff by Level and Gender
L.11-13 L.8-10 L.5-7 L.3-4
Female
Training Hours
Total
Average
Total
Average
High-Ranking Executive Middle Manager Supervisor Operational Staff
801.00 4,831.30 15,365.40 25,683.00
114.43 146.40 72.14 48.19
926.90 4,518.50 15,060.40 12,938.50
102.99 122.12 88.59 46.54
Total training hours by gender Level
L.11-13 L.8-10 L.5-7 L.3-4
Male
Category
No. (Persons)
High-Ranking Executive 16 Middle Manager 70 Supervisor 383 Operational Staff 811
Average training hours per year per staff by gender Total Training Hours
Average Training Hours
1,727.90 9,349.80 30,425.80 38,621.50
108 134 80 48
Gender
No. (Persons)
Total Training Hours
Average Training Hours
Male Female
494 786
33,444.30 46,680.70
48.50 59.39
Total
1,280
121 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Learning to create value and develop in an integrated manner
122 SUSTAINABILITY REPORT 2015
The Academy emphasizes the significance of knowledge sharing and learning from case studies to continuously develop knowledge, management process and provision of services to customers. The opportunity for learning and development will also be cascaded to operational staff to ensure equal opportunity for learning.
Scholarships
E-Learning
In 2014 and 2015, the Company provides three Masters Degree Scholarships per year to staff (400,000 THB each) to build and develop their capacity as well as provides the opportunity for staff to grow together with the organization. Three scholarships at the total amount of 133,816 THB are also offered to graduate students of Chulalongkorn University to support the preparation of their dissertation.
The Company has developed E-Learning system which is the provision of education through electronic technology and internet or intranet network. It is the â&#x20AC;&#x153;self-studyâ&#x20AC;? which the learners can choose the learning time and place that best suit their requirements. At the moment, ten topics are available on the E-Learning system e.g. History of LPN, LPN Way and Sustainable Development.
Overview of Human Resources Development in 2015
Expenses on Internal Training:
Expenses on Training in 2015: Totaling
Expenses on External Training:
11,865,097
18,665,256.25
1,577,903
THB
THB
THB
Average Training Expense Per Person :
Other Expenses:
5,222,256.25 THB
78%
43%
87%
Leadership and Management Competencies of Managerial Staff (L.8-13)
Increased Knowledge of Staff Before and After Attending the Training
Satisfaction of Staff on Opportunity to Learn and Develop
10,176 THB / Person
123 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
In 2016, the Human Resources Development Plan of the Academy will be integrated with the recruitment process, the development of successors, the development of high potential staff, the appointment and transfer of staff, performance evaluation and calculation for remuneration for staff. The Human Resources Management system is to be developed to be most effective for the organization to be a “Learning Organization” and “Vibrant Organization” and finally a “Value Organization” in a sustainable manner which is the ultimate goal of the organization.
Knowledge and Experience Sharing with the Public and Educational Institutions The Company has established L.P.N. Academy with the commitment to develop the organization towards sustainability and develop staff in response to the business expansion. In addition, L.P.N. Academy is the platform for educational institutions, government agencies and private organizations to learn about project development and management concept of the Company via knowledge sharing sessions and study visit. In 2015, the total of 18 study groups visits the Company, 12 of which are educational institutions, 4 are governmental agencies and 2 are private organizations. There is the total of 737 participants.
The purpose of the study visit is to learn about vibrant community management (15 study groups) and project design concept and construction management (3 study groups). The top five questions asked by the participants of the study groups are about the following issues: 1. Project information (sale price, unit size) 2. Building structure, security system 3. Compliance with rules and regulations in the community and penalty for violating the regulations 4. Parking space and fee for cars/motorcycles 5. Appointment of Juristic Person Committee
Knowledge sharing with the public
124 SUSTAINABILITY REPORT 2015
Scoop AS PROCESS
Community Management Training Course
The Company in collaboration with L.P.N. Academy and Community Management Department has developed the â&#x20AC;&#x153;Community Management Training Courseâ&#x20AC;? or CMTC to build the capacity, knowledge and skills of staff to become a professional in community management in response to the rapid growth of the organization and the business operation of the Company. With more than 20 years of experiences in community management, the Company is capable of producing high-quality staff and speakers to share their expertise and train staff to become community managers in the future. From 2004-2015, the total of 13 Community Management Training Courses has been organized with 229 participants.
CMTC Learning Process C M T C
Selecting select and interview staff based on the above criteria
Training (Course Work)
Developing
ASK training, workshop, study tour
project assignment and case study (F-B-L-E-S+P)
On the Job Training act as an assistant community manager
70% On the Job Training
10 : 20 : 70 Learning Formula
20% Developing (Coaching Feedback)
10% Training
125 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Participants Selection The Company will select the participants based on the above criteria and interview to assess their attitude and maturity.
10 : 20 : 70 Learning Formula
10% - Course Training • focuses on the provision of knowledge and techniques to build the operational skills.
20% - Developing (Coaching Feedback) the knowledge and skills gained from the training will be adapted and used i.e. • F-B-L-E-S+P Project is specially designed to develop communities, analyze problems and offer solutions. • Project Assignment is the learning through case studies. F-B-L-E-S+P strategy and thinking is implemented and adapted to prepare preventive measures and solutions to various problems.
70% - On the Job Training • the participants of CMTC will perform their duties as an assistant community manager and report their performance to the committee. Their performance and capacity as an assistant community manager will be assessed.
From 2004-2015, the total of 13 Community Management Training Courses has been organized with 229 participants.
Future Plan The Company plans to continuously develop CMTC as a signature course of the organization to prepare for the business expansion. It is hoped that CMTC will be developed further and shared with external organizations.
126 SUSTAINABILITY REPORT 2015
SOCIAL ENTERPRISE At present, the problem of labor exploitation especially women labor is of grave concern and is urgently needed to be solved by the collaboration of both government and private sector, especially that of underprivileged female workers who are uneducated and illiterate, some of whom are abused by the employers in terms of wages. Moreover, some female workers are abandoned by their husbands and are single mothers taking care of their children so they have no other options but to work in exploitative organizations and are prone to other social problems such as gambling and drug. The real estate business of the Company involves around various types of services especially cleaning services. The Company has established a unit to provide cleaning services to the communities managed by the Company with the intention to provide an opportunity for underprivileged women
in the society to be professionally trained with the focus on cleaning services in “Lumpini” communities. It is also to enhance the quality of life of underprivileged women and their families. In 2011, the Company started to study the social enterprise concept to add on to the operational direction of the department. The status of this line of work is approved by the Board of Directors of the Company to be upgraded to the establishment of Lumpini Property Service and Care Co., Ltd. to manage the work separately and pave the way for the company to be a social enterprise. More trainings and services will be provided to generate income, better quality of life, dignity and happiness for staff while also working to benefit the society in return in a scheme which is to be decided in the future. There are currently more than 1,200 staff in the company. One of the KPIs of this department is the happiness of employees. The result is very satisfactory as evident in the survey of the satisfaction of cleanliness services provided to communities and the uplifted quality of life and happiness of staff.
Definition of Underprivileged Women
• Have low level of education or are uneducated. • Are exploited in terms of wage by business operators. • Have family problems, are abandoned by their husband and are responsible for taking care of their children or parents.
127 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
LPN is very proud to be the Company that creates happiness for underprivilleged women.
128 SUSTAINABILITY REPORT 2015
• Operational Goal of the Business for Underprivileged Women KPI
Result 2014
Target 2015
Result 2015
% happiness of staff
94
≥ 90
96
% operational profit
2
≥2
3
บร�หารชุมชน บร�หารชุมชน
บร�หารชุมชน
บร�หารชุมชน
บร�หารชุมชน
Income
• Salary: 10% higher than the minimum wage • Income from part-time job
Opportunity
• Education and skills training • Career growth • Career training
Dignity
Happiness
• ONE LPN • Pride in profession
• Voluntary activity • Contribution to society • Scholarship award • Informal debt repayment
Performance on Staff Development Promotion of Education
47 maids earn Vocational Certificate and High Vocational Certificate.
29 maids earn Elementary School Certificate and Secondary School Certificate.
14 maids complete the traditional Thai massage course.
Career Growth
42 staff are promoted (from daily staff to permanent staff) and achieve career growth.
129 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
• Income Generation The Company does not only develop the better quality of life but also aims to generate income for underprivileged women. The wage paid at the Company is 10% higher than the minimum wage. Appropriate benefits and welfares are offered e.g. position fee, overtime payment, transport allowance, mobile phone allowance, annual salary raise, scholarships for their children, loan (without interest), employment after retirement, accommodation for staff, etc. Moreover, physical and mental health of Community Services Officers is also taken care of via the provision of annual medical check-up and group life insurance.
บร�หารชุมชน
Income
Staff’s average income per day
บร�หารชุมชน
is
460 THB*
* Wage / Bonus / OT / Diligence allowance
% of staff happiness 100 90 0 Million THB 260 240 220 200 180 160 140 120 100 80 60 40 20 0
94%
92%
96%
96%
98%
96%
98%
98%
98%
97%
94%
96%
259 217 186
130 112 74 48 20
27
36
58
14 2547
2548
2549
2550
2551
2552
2553
2554
2555
2556
2557
2558
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Income from service fee (million THB)
% of staff happiness
• Provision of Opportunities 1. Educational Opportunities บร�หารชุมชน
Opportunity
The Company has always stressed the importance of education. The higher education people receive, the more opportunities they will have in the society. Education is thus provided to the maids i.e. Non-Formal Education and Vocational Education. In 2015, the number of maids furthering their studies is as follows:
130 SUSTAINABILITY REPORT 2015
Literacy Project
Vocational Education Program
A teacher from Non-Formal Education Center in Sathorn District is invited to teach staff to read and write during their break at work. The class is conducted in the multi-functional room of various projects. The learning hours are 25 hours per person. In 2015, the total of 42 staff attend the class. At the end of the course, a test is conducted and 20 staff are able to pass the test while 22 staff fail (information as of November 2015). The teacher says that most of those who fail have never been to school before but those who have received a basic education to a certain extent have been doing well and should be supported further.
As a result of the education reform, the curriculums offerred at Bangkok Art and Craft College are pending approval from the Vocational Education Commission. Therefore, the Company must wait for the approval of the courses before enrolling staff into the course in 2016. 2. Career Advancement Opportunity
The Company provides opportunities for staff with good performance to grow in their line of work, including the Cleaning Service Officers. In 2015, the Company aims to provide the opportunity for career advancement for at least 15 Cleaning Service Officers. Position Changes of Cleaning Service Officers
Education Promotion in 2015 Non-Formal Education: The class is conducted every Tuesday at Jasmine Room, 11th Floor, Lumpini Tower. The learning hours of each semester are 108 hours. In 2015, there is the total of 38 students. Nine students have graduated and two students withdraw from the course. The total of 27 students remains. The details are as follows:
Former Position
Cleaning Service Officer Cleaning Service Officer Cleaning Service Officer Security Relations Officer Security Relations Officer
New Position
No. of Staff
Security Relations Officer Community Driver Juristic Person Officer Juristic Person Officer Community Driver
4 1 6 4 1
Number of Students in the Non-Formal Education Program No. of Students Education Level
Elementary Lower Secondary Upper Secondary
Existing Students
4 16 3 Total
New Withdraw/ Graduated Remaining Students/ Stop Taking Students Students Classes Moving to Higher Level
7 3 3
1 -
2 5 2
9 13 4
9
26
3. Part-time Career Training
Community Driver Program The program is initiated to provide opportunities for Community Service Officers who are interested in being a driver of a shuttle bus in the project to earn extra income during their free time. They can join the program by attending the Driver and Service Development Course at the Department of Land Transport. The learning hours are 13 hours per person i.e. four-hour theoretical section and nine-hour practical section. The total of eight Community Service Officers have passed the driving test and obtained a driving license. Four staff are to attend the driving test. All expenses are paid by the Company.
131 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Other Career Trainings The Company provides career training opportunity for the maids and Community Service Officers so that they can earn more income during their free time. Thai Massage Training is organized at Bangkok Metropolitan Administration Training Center, Wat Janyawas on either Saturdays and Sundays from 09.00-15.00 hrs. The Company provides financial support for books and other equipment at the amount of 250 THB/person as well as transportation cost of 300 THB/day. In 2015, the details of the attendants of the program are as follows: • Class 1: There is the total of 12 attendants, eight of whom have graduated. The certificate will be presented in January 2016. Four of the attendants fail to complete the course because one has to take care of an ailing mother, one has to take care of an ailing husband, one does not like the course and one decides to quit.
• Class 2: There is the total of six attendants. The classes are conducted between 31 October 2015 - 31 January 2016. The attendants of Class 1 who have completed the course are now providing Thai massage service in various events. Thai Massage Service Provided in Various Events Event
Date
- 33rd House and Condo Show at Queen Sirikit Convention Center - Community Free Market at Lumpini Place Suksawasdi-Rama 2 - Soontraporn Musical Event at Savangkanives - Launching Event of Baan Lumpini Townville Chaengwattana-Tiwanon - Loy Kratong Event at Lumpini Park Riverside-Rama 3
8-11 October 2015 31 October 2015 1 November 2015 7-8 November 2015 25 November 2015
• Promotion of Dignity บร�หารชุมชน
Dignity
Community Service Officers are treated equally and provided equal opportunities as staff in other departments. They are also supported in terms of scholarship paid from the budget of the Company for them and their children to continue their studies. Community Service Officers whose service years exceed ten years will be employed as a permanent staff. There are awards to promote good deeds in the community and gifts are presented to Community Service Officers at their 10th, 15th and 20th year of service. An award is also presented to those who achieve the performance evaluation score of higher than 90%. Various activities are organized e.g. New Year Party to make them feel proud of their profession and feel that they are a part of the organization.
• Promotion of Happiness บร�หารชุมชน
บร�หารชุมชน
Happiness
Promoting the happiness of Community Service Officers is one of the policies of the organization to enhance the work-life balance of staff. Moreover, they are encouraged to take part in social activities as follows:
132 SUSTAINABILITY REPORT 2015
â&#x20AC;˘ Environmental Activity 1. Producing EM Water Community Service Officers are encouraged to produce and use environmentally friendly products. They are trained to make EM water to use in cleaning such as dishwashing liquid and floor cleaner instead of chemical substances to clean toilets, garbage room, hallway of the common area, waste water pipes and parking lots. The EM water is also given out to other communities and to the residents. In 2015, the total of 63,284 liter of EM water is produced, increasing 40.83% from 2014 (information from January - November 2015). EM Water Production in Lumpini Community
2. Cleaning of Public Area In their free time, Community Service Officers will offer their cleaning service to the public by cleaning public space such as bus stops, flyovers, police stations, beaches, nearby communities, surrounding area of the project and religious places. Manpower and time are allocated specifically for such social activities so that it will not affect their work. In 2015, 822 cleaning activities are organized in the public space and 84 activities in religious place.
Social Activities from January-November in 2014 and 2015 Place
2014
2015
Public Area Religious Place
350 60
822 84
410
906
Total
Cleaning Activities in Public Area
Cleaning Activities in Religious Place
133 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Scoop AS PROCESS
Philanthropic Investments
The Company, as one of a hundred organizations ranked for outstanding performance in terms of environmental, social and governance aspects (ESG100), is to participate in the “Philanthropic Investment” initiative of Thaipat Institute. The six leading enterprises founder consist of BTS Group holdings PCL, L.P.N. Development PCL, Minor International PCL, Khon Kaen Sugar Industry PCL, Nam Seng Insurance PCL and Tisco Group. The fund of 120 million THB raised will be invested in listed securities that have the outstanding environmental, social and governance (ESG) performance in order to generate profits for sustainable social welfare and social development. “Philanthropic Investment” is the initiative of Thaipat Institute. It is about investing money for the purpose of generating returns that can be used to help the society in the areas of education, public health, occupational develop and environmental conservation. Through such investments, the start-up funds remain intact. It provides alternatives to listed companies, private foundations and family businesses to allocate fund or resources to address social needs. As for the Company, the profits generated from the investment will be used to support the operation of Lumpini Property Service and Care Co., Ltd. (LPC) to build the capacity of underprivileged women to become community service officers, create income, enhance their quality of life and uplift their dignity. It is also expected that Lumpini Property Service and Care Co., Ltd. will become a social enterprise in the future.
134 SUSTAINABILITY REPORT 2015
Innovation for Sustainability The Company has always given importance to innovation development and promotes an atmosphere to foster innovation in all operational processes. Lateral thinking is identified as one of the core competencies of the organization that will motivate the executives and staff to create new innovations to add values to the products and services. The innovation of the Company can be categorized into three levels as follows:
1
2
3
Strategic Innovation
Product Innovation
Process Innovation
is the innovation that supports the vision and strategy of the organization e.g. vibrant community for all and the development of Building Information Modeling system.
is the innovation that adds value to the product and service of the Company e.g. LPN Design, LPN Green Project, Living Library and Suan Ruam Jai.
is the improvement of the operational process or service in response to the needs of customers e.g. sales process, ownership transfer process and marketing and brand communication.
1. Strategic Innovation Vibrant Community For All “Vibrant Community For All” strategy is developed from “Vibrant Community” strategy which is the core strategic innovation that has been implemented for more than 20 years. Since the very beginning, the Company has targeted the customers in the middle to low income group consisting of young people who just start their career and are looking for their own place to live. Such target group is called “D I N K - Double Income No Kids” group. From almost three decades of project development and community management, the Community Management Department has found that the types of residents have been expanded to include older age group and extended families with elderly family members. This finding is in accordance with the fact that Thailand is becoming an aging society. In response to such development, the Company thus decides to further develop the strategy to be inclusive of all age groups. The focus will be on the development of condominium units and common area that are appropriate for the elderly people who are still independent so that the “Vibrant Community For All” will be able to create the real pleasure of living for everyone. Lumpini community is the community in which the residents of all age groups live happily together with great quality of life, environment and society and in the culture of togetherness, care and share.
135 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Building Information Modeling (BIM) The Company started connecting the Building Information Modeling (BIM) process to the design and construction process in order to minimize risk in terms of data incompletion. BIM is the technology that connects two types of information i.e. numeral data such as building space, number of construction materials and construction materials prices with visual data such as construction model to become one. The changes of information in one will also affect the other. In the past, the project development process will start from designing a building and seeking approval from the executives. The draft of the design will be used to generate the quantity takeoff so that the construction materials and cost can be estimated by specialists. This process normally takes weeks. Moreover, while the quantity takeoff is being generated, the design may be revised, resulting in the errors in the construction model and cost. BIM technology is able to help shorten the period of the estimation of construction materials and cost. If BIM technology is utilized in the development of a building, the information on the quantity of construction materials and cost will be processed simultaneously. It will only take hours to estimate the costs, not weeks. The Company will be able to improve the information received to develop exact costs and achieve optimized design solution with the budget and product qualifications that match the needs of the consumers. Moreover, BIM is the technology that processes three-dimensional building information, not two-dimensional like before. It is the creation of a virtual building in the computer prior to the start of the actual construction. BIM system is able to detect errors or element clash, allowing the designer to solve the problem before the construction starts. Otherwise, there will be enormous costs associated with the problem-solving process later on.
When BIM technology is utilized in the development of a building, the information on the quantity of construction materials and cost will be processed simulataneously. The Company will be able to improve the information received to develop exact costs and achieve optimized design solution with the budget and product qualifications that match the needs of consumer.
136 SUSTAINABILITY REPORT 2015
2. Product Innovation LPN Design The product development of the Company focuses on increasing the value that responds to the needs of consumers while maintaining the upper hand over competitors, leading to the trust in “Lumpini” brand. Throughout the years, the Company has been successful in developing products that meet the needs of customers. The heart of the development and design process of the Company is the development of “LPN Design” concept which has been widely accepted, “LPN Green” concept developed under LEED Standard as well as Mixed Target Development which is the development of project to serve the needs of both office workers and retirees. “LPN Design” concept is developed since 2001. It starts with the 30 sq.m. studio condominium unit and 60 sq.m. two-bedroom condominium unit which introduce the new standard of condominium living since both are suitable with the Thai ways of living and are easy to maintain. It could be said that LPN Design is the model of urban residential condominiums development which has been copied by many other business operators as it is able to answer to all the needs of the residents. Until now, the main products of the Company have constantly been improved. In spite of its small size, the 26 sq.m. one-bedroom condominium unit is able to respond to the livelihood and needs of the residents. The price range is also affordable and attractive to the target group even though the costs of project development have continuously been increasing. The 26 sq.m. condominium unit of the Company was praised to be the “Product of the Year” in 2009 by one of the newspapers. The latest innovation is the design of the 21 sq.m. condominium unit to answer to the livelihood of urban residents in small-size condominium unit. This design is firstly introduced in a project in Chonburi province.
LPN Green Project and LPN Signature Green Project The Company pays much attention to the impacts on the environment as a result of a project development and thus comes up with “LPN Green Project”. This concept is introduced to the public and receives positive feedback in terms of the sales volume. “LPN Signature Green Project” is also developed as a model of green project that emphasizes the reduction of environmental impacts. Though “LPN Green Project” is established by the Company, it is consistent with “Green Building” standard of LEED. This showcases the corporate environmental and social responsibility of the Company. However, the development of LPN Green Project must take into consideration the appropriateness and possibility in other aspects, especially in terms of project costs so as to be in accordance with the strategy and vision of the Company.
137 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Suan Ruam Jai: Adding Values to “Vibrant Community” and Raising Awareness of Togetherness in the Community Urban expansion has significantly reduced green space in Bangkok. Since it is not possible for urban residents to live close to nature, the Company has come up with idea of developing green space in the project and brings nature closer to them. It will add value to the project and will be a platform for the residents to participate in activities together, get to know each other and meet their neighbors. Suan Ruam Jai is not only a park but a venue for various activities in the community, for example, recreational activities, health promotion activities like aerobic and yoga, dharma in the park, parties and music in the park. The area in Suan Ruam Jai is divided into three main parts as follows:
Welcome Area
Active Area
Passive Area
the area at the front of the park
the area designed for active activities of all age groups e.g. playground, sport field, jogging track and outdoor gym.
the recreational area for the residents to get together and relax.
In “Vibrant Community,” Suan Ruam Jai is the center of the community where community members get together and activities are organized to promote the culture of togetherness, care and share within the community and with neighboring ones.
138 SUSTAINABILITY REPORT 2015
3. Process Innovation Sale Process As a consequence of the trust of the customers placed in “Lumpini” brand, the products of the Company are in high demand in the market. For some projects, customers have been forming a long queue in front of the project many hours before the sale opening day in order to reserve to buy condominium units. Such difficulties have not been neglected. The Marketing and Sale Department has come up with tag issuance and draw system so that it would be more convenient for the customers. This is the obvious example of the creation of service value to customers. Furthermore, it is widely accepted that the sales of “Lumpini” projects are usually closed within a very short period of time. Most recently, the sales of 3,000 condominium units are closed within only 3 hours. Sales activity of “Lumpini” projects.
Construction Process The Company has invented the semi prefabrication construction system which combines exterior ready-made wall panels with interior wall panels rendering system to shorten the construction period and reduce wall cracks problems after the handover of the units. Furthermore, the Company encourages all constructors to invent a construction system or equipment as well as process to add value to the construction work. An innovation competition has been organized annually as an incentive for the Construction Department and business alliances (LPN Team) to encourage related parties to create new innovations in construction work. Semi prefabrication construction system combines exterior ready-made wall panels with interior wall panels rendering system.
Condominium Ownership Transfer Process The product development strategy of the Company focuses on the development of condominium for customers with middle to low income who are in need of a residence, resulting in an annual increase in the number of condominium units of the Company. The handover of condominium units is not regularly done on a monthly basis. The department which is responsible for the ownership transfer of condominium units, therefore, adjusts the ownership transfer system with the involvement of various departments both internally and externally (e.g. customers, banks, government offices), enabling the Company to transfer the ownership of 550 units within one day only. This is considered to be the process innovation which helps increase the effectiveness of the business operation of the Company.
139 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Marketing and Brand Communication At first, the marketing activity of the Company does not focus on the communication through mass media which is very costly but opts for more effective marketing tools that have direct access to the target group, especially the former customers of the projects of the Company. The key policy of the Company is to manage the community to develop good quality of life of the residents. As a result of successful community management, this group of customers has spread the word of mouth to other groups of customers. Around 50% of new customers are by referral. This type of marketing is absolutely free of cost and helps the Company gains the upper hand in the market.
Community Management Process Apart from developing a product to respond to the needs of the customers, provision of service is the other component that makes the “Lumpini” brand unique and widely accepted in the society. “Community management” concept is developed and implemented by Lumpini Property Management Co., Ltd. which has been established for 23 years and is responsible for managing all communities developed by the Company.
During the past 23 years, Lumpini Property Management Co., Ltd. has been managing our communities to become “vibrant community” which is widely accepted in the society.
140 SUSTAINABILITY REPORT 2015
Staff Information (G4-10) Number of Staff by Category (G4-LA12) Gender
Workplace
Religion
Samut- Pattaya/ UdornBangkok Nontaburi Patumtani prakarn Chonburi thani Cha-am
Buddhist Christian Muslim
Age
Type Male Female Total
Below 30-50 30
Over 50
Permanent Staff
Level 1-4 Level 5-7 Level 8-10 Level 11-14 Total
291 167 29 9 496 42%
726 435 374 207 62 33 17 8 683 1,179 58% 100%
474 51 525 45%
245 304 54 9 612 52%
7 607 19 329 8 58 8 17 42 1,011 4% 86%
29 30 3 46 8 3 685 12 29 15 14 2 8 3 3 367 3 4 - 1 3 - 60 2 - 16 - 1 44 45 5 57 11 6 1,128 17 34 4% 4% 0% 5% 1% 1% 96% 1% 3%
76 2 78 40%
191 115 3 1 194 116 60% 100%
143 143 74%
47 2 49 25%
1 130 11 5 3 24 13 5 185 3 3 1 2 1 3 - 2 132 11 5 3 24 13 6 188 3 3 1% 68% 6% 3% 2% 12% 7% 3% 97% 2% 2%
33 50%
66 61 33 50% 100% 92%
5 8%
- 33 3 22 8 - 65 1 0% 50% 5% 33% 0% 12% 0% 0% 98% 2% 0%
Contractual Staff
Level 1-4 Level 5-7 Total Daily Staff
Total Maid
Total
23 2%
1,236 1,259 98% 100%
72 6%
924 263 1,023 65 52 1 92 25 1 1,239 7 13 73% 21% 81% 5% 4% 0% 7% 2% 0% 98% 1% 1%
Security Relation Officer
Total Grand Total
86 29% 716 24%
298 136 155 7 229 21 6 - 35 7 - 292 2 4 212 71% 100% 46% 52% 2% 77% 7% 2% 0% 12% 2% 0% 98% 1% 1% 2,280 2,996 937 1,745 314 2,428 144 130 9 216 56 13 2,912 30 54 76% 100% 31% 58% 10% 81% 5% 4% 0% 7% 2% 0% 97% 1% 2%
Gender Religion
Female
Male
58%
Buddhist
42%
97% Christian
Category
Female
Male
1%
2%
29% 58% 42%
Temporary Staff
60% 40%
50% 50%
Contract Staff
Daily Staff
98%
Maids
71%
Security Relation
Muslim
2%
141 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Resignation Rate (G4-LA1) Gender
Type
Male
Gender
Age
Female
Total
Below 30
30-50
Over 50
Permanent Staff + Contract Staff Total 89 112 37% 63%
201 100%
116 70%
81 30%
4 0%
Female
Male
63%
37%
New Staff in 2015 Hometown
Type
Northeastern Eastern Region Region
Permanent Staff Level 1-4 Level 5-7 Total
55 3 58 44%
8 3 11 8%
Western Region
1 1 1%
Southern Region
24 24 18%
Type
Total
Contract Staff Level 1-4 Level 5-7 Total
239 22 261 199%
Hometown Northeastern Region
Eastern Region
Western Region
Southern Region
Total
14 1 15 22%
8 8 12%
2 2 3%
9 9 13%
99 1 100 145%
Injury Rate, Occupational Diseases Rate, Lost Day Rate and Absentee Rate (G4-LA6) Number of Injuries x 200,000 Total Hours Worked
=
10 x 200,000 52 x 42 x 2,996
= 0.31 (0.75 time per 200,000 working hours)
ODR =
Staff Suffered From Occupational Diseases Total Hours Worked x 200,000
=
0 x 200,000 52 x 42 x 2,996
=0
LDR =
Total Number of Lost Time x 200,000 Total Hours Worked
=
104 x 200,000 52 x 42 x 2,996
= 3.18 (3.18 day per 200,000 working hours)
Total Days of Absence in a Period x 200,000 Total Days Worked
=
5,574 x 200,000 52 x 42 x 2,996
= 170.37 (170.37 day per 200,000 working hours)
IR =
AR =
Accident Statistics (G4-LA6) Type of Accident
Location
Slip, Fall, Fall from Height
Being knocked over /bumped
Contact with chemical substances
1 time
2 times
1 time
Being injured by falling objects
Being hit by a vehicle
Others
1 time
2 times
3 times
The categorization of the accidents shows the main causes of injury. The other type of injury is sharp object injury (30%). Other causes include contact with chemical substances, injury from falling objects, motor vehicle accident, slip and fall (10%) and being knocked over or bumped (20%). There has never been a fatal accident that causes death in the workplace and the Company intends to keep it that way.
Head Office Project Construction Sites
0 time 10 times
Gender Female
Male
70%
30%
142 SUSTAINABILITY REPORT 2015
No. of Staff Evaluated During Reporting Period
Evaluation During Reporting Period Gender
Total
No. of Staff Evaluated
Male Female Total
709 2,287 2,996
709 2,203 2,912
Other Development Guidelines
No. of Staff Not Evaluated
0 84 84
Evaluation During Reporting Period
1) Develop online evaluation to be real-time. 2) Evaluate staff based on Individual KPI. 3) Evaluate staff performance twice a year. 4) Evaluate staff behavior based on the core value of the organization. 5) Develop and improve performance of staff based on the result of the evaluation with L.P.N. Academy. 6) Implement a job rotation program among management staff to provide opportunity for growth and learning. 7) The job rotation in the Community Management Department will be implemented every four years to provide opportunity for growth and learning as well as to promote transparency of the operation.
Male
Total
Evaluated Not Evaluated Total
709 0 709
% Evaluated Among Male Staff
% Not Evaluated Among All Staff
100% 0% 100%
23.66% 0% 23.66%
Evaluation During Reporting Period Female
Total
% Evaluated Among Female Staff
% Not Evaluated Among All Staff
Evaluated Not Evaluated Total
2,203 84 2,287
96.33% 3.67% 100%
73.53% 2.80% 76.34%
Salary Base and Remuneration of Male and Female Staff by Type of Employment in Significant Operation Area (G4-LA13) Male
Female
Staff Level Maid Level 1-4 Level 5-7 Level 8-10 Level 11-14 Total
No./Person
Salary
Other Remuneration
No./Person
Salary
Other Remuneration
109 400 169 29 9 716
1,246,986 7,046,690 5,442,350 2,071,000 1,874,800 17,681,826
56,297 115,600 978,160 386,600 82,800 1,619,457
1,448 583 208 33 8 2,280
13,346,658 10,215,153 6,140,435 2,090,930 1,414,380 33,207,556
500,948 202,380 1,093,000 420,600 66,600 2,283,528
Note: - Salary refers to the salary base of staff per month. - Other remuneration refers to other remuneration such as position fee, Site Manager fee, internet fee, telephone charges, gasoline, professional fee and duty fee per month.
143 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Maternity Leave in 2015 Note: Information as of 31 December 2015 (G4-LA3)
95.83% is the percentage of person come back to work
4.17%
The total of 24 staff take maternity leave.
is the percentage of person take maternity leave and offee their resignation
(23 persons)
(1 person)
Benefit for Staff (G4-LA2) Benefits 1. Life Insurance • Group Insurance - Life Insurance / Accident Insurance - Health Insurance (Staff)
Permanent
Contractual
Daily
Maid
Security Relation
• •
• •
•
•
•
• • • • • • • • • •
• • • • • • • • • •
• • • • • • • • • •
• • • • • • • • • •
• • • • • • • • • •
• • •
• •
• •
• • •
•
•
•
•
• • • • • • • •
• • • • • • • •
•
•
• • •
• • •
•
•
2. Healthcare • Annual Medical Check-up • Fitness Membership • Sports Clubs • Flu Vaccine • Dispensing of Medication • Nursing Room • Breast Pumping Corner • Drinking Water • Social Security • Compensation Fund
3. Others • Uniform for New Staff • Annual Uniform • Sourvenir Pin for 10, 15 and 20 Years of Service • Awards for Good Deeds • Free Education and Education Promotion • Career Trainings for Development • Scholarship for Staff’s Children • New Year Party • Allowances - Sickness - Giving Birth - Marriage - Death of Relatives (Staff) - Death of Staff • Loan • Provident Fund • Retirement Fund
• • • • • • • •
•
144 SUSTAINABILITY REPORT 2015
Benefits 4. Benefit for the Disabled The Company employs staff with disabilities as required by law and provides them with benefits that are similar to other employees.
5. Maternity Leave Female staff can take a paid maternity leave for 90 days, 45 of which will be paid by the Company and the rest by the social security fund.
6. Retirement Policy The retirement age of staff are 55 years and 60 years. Staff will receive a compensation other than that required by law. Staff who have been working with the Company for longer than ten years will receive a retirement fund at the rate of their final salary. Staff will receive the reward of 0.5 month salary for every service year that exceeds the first ten years but the maximum reward must not exceed 12 months.
7. Right to become a shareholder None
Percentage of Total Labor Force in the Welfare Committee (G4-11) Freedom of Assembly and Negotiation L.P.N. Group respects the right of assembly and negotiation of staff. The Welfare Committee is the platform for all staff to take part in providing recommendations and guidelines on the provision of welfare to the executives. At present, the Welfare Committee comprises 20 members who are representatives of staff from all levels and are elected by their colleagues. The duties and responsibilities of the Committee according to Section 96 of Labor Protection Act B.E. 2541 are as follows: 1. Discuss with an employer in relation to the provision of welfare to employees. 2. Provide advice and recommendations to an employer regarding the provision of welfare to employees. 3. Inspect, control and oversee the provision of welfare which an employer provides for employees. 4. Provide opinions and guidelines to the Welfare Committee on the provision of welfare for the benefit of employees. No. of Staff
No. of Committee Member Workplace No. of No. of Company Committee Staff Member
LPN PST LPP LPS LPC
5 394 0* 18 5 888 5 126 5 1,570
Total
20
Level
Workplace
Percentage
Level
Workplace
Level Total
HO Site
5 0 3 4 1
Operational Management Executive (5-7) (8-14) (1-4)
HO
Site
Operational Management Executive (5-7) (8-14) (1-4)
0 0 2 1 4
2 0 1 0 3
2 0 4 3 1
1 0 0 2 1
256 138 237 184 16 2 9 7 158 730 688 168 50 76 46 66 67 1,503 1,489 8
42 2 32 14 4
2,996 13 7
6
10
4
547 2,449 2,469 433
94
HO
Site
1.95 0.00 1.90 8.00 1.49
0.00 0.00 0.27 1.32 0.27
Operational Management Executive (5-7) (8-14) (1-4)
0.84 0.00 0.15 0.00 0.20
1.09 0.00 2.38 4.55 12.50
2 0.29 0.24 2.31
2.38 0.00 0.00 14.29 25.00
1.27 0.00 0.56 3.97 0.32
94 0.67
* Since the number of staff of Pornsanti Co., Ltd. is less than the minimum number required by the Labor Protection Act, the company does not have any representative in the Welfare Committee.
145 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Report Preparation Guideline (G4-14, 23, 28, 29, 30) Report Preparation Guideline Sustainable Development Report 2015 is the second report of L.P.N. Development Public Co.,Ltd. prepared to promote the sustainable development concept and economic, environmental and social performance of the Company to all stakeholders. The core strategy of the Company is 6 Green LPN. The information included in the report is compiled between 1 January to 31 December 2015. The framework of the preparation of the Sustainable Development Report 2015 is in line with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines version 4, in accordance with the Guidelines using “Core” option. Moreover, international standards are applied and adapted in accordance with the operational goal and strategy of the organization to enhance the sustainability of the Company. Long-term goals are established based on the 17 goals of the United Nations Sustainable Development Goals (UNSDGs) and Green Standard Checklist for project design and development is developed based on LEED (Leadership and Energy and Environmental Design) to upgrade and standardize the operation of the Company and pave the way towards sustainability. สอื่ มวลชน
แรงงา น
ีย ง
ผูพักอ
า ศัย
ราชกา งา น
ข า ง เ ค
ร
ล ูก ค า บ า น
น ว ย
กรรมก ารน ติ ิฯ
คแู ขง
อ ม
2. Consider the important sustainability issues along with the policy and risks of the Company.
ผถู อื หนุ
LPN’s STAKEHOLDER
สิ�งแวดล
1. Identify important sustainability issues and stakeholders engagement.
คูคา
The identification and assessment of major sustainability issues of the Company will take into account the nature of the business operation and the stakeholders in order to achieve the goals, meet the needs of all stakeholders and ensure the sustainability of the business operation. The Corporate Environmental and Social Responsibility Committee will consider the issues based on the Sustainability Reporting Guidelines version 4 of GRI to include all aspects of the operation. The assessment process of the issues to be included in the report is as follows:
งาน พนกั
TEAM LPN
The identification and assessment of major sustainability issues (G4-18)
ห
ส ัง ค ม
3. Prioritize the sustainability issues.
4. Present the sustainability issues.
146 SUSTAINABILITY REPORT 2015
Sustainability Aspects (G4–17, 19, 20, 21) Sustainability Aspects of GRI-G4 Sustainability Reporting Guidelines Economic Performance
Sustainability Aspects
Scope Internal (G4 - 20)
External (G4-21)
LPN PST LPP LPS LPC LPN ACADEMY
Appropriate profits and growth Transparent and auditable financial statement Financial discipline Regular communication to shareholders Balanced and appropriate distribution of profits generated from all sectors Mutual development and growth Appropriate returns Supply chain management
Shareholders Shareholders
Materials
Appropriate use of materials and resources
LPN Team
Energy
Consideration for impacts from project design Environmental management in communities via Green, Clean, Lean activities
Neighbors, LPN Team Residents
Water
Environmental management in communities via Green, Clean, Lean activities
Residents
Biodiversity
Environmentally friendly building design in accordance with Green Design Standard
LPN Team
Effluent and Waste
Environmental management in communities via Green, Clean, Lean activities
Residents
Products and Services
Affordable house Development of products in accordance with the behavior and lifestyle of customers Delivery of good quality of life via community management under “Vibrant Community For All” strategy Reduction of impacts from construction following LPN Green Construction Process Standard
Customers Customers
Promotion of “togetherness, care and share” concept and volunteer network e.g. blood donation activity Promotion of participation of Lumpini residents via the support for environmental and social activities of Lumpini Volunteer Clubs Emphasis on environmental responsibility in process
Residents, Public
Overall
Shareholders Shareholders Shareholders, Staff LPN Team Shareholders, LPN Team LPN Team
Residents
Labors, Neighbors, LPN Team
Residents
147 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
Sustainability Aspects (G4â&#x20AC;&#x201C;17, 19, 20, 21) Sustainability Aspects of GRI-G4 Sustainability Reporting Guidelines
Sustainability Aspects
Scope Internal (G4 - 20)
External (G4-21)
LPN PST LPP LPS LPC LPN ACADEMY
Environmental Grievance Mechanisms
Complaint and satisfaction management
Customers, LPN Team, Residents
Labor Practices and Decent Work
Corporate values Vibrant organization Learning organization Work-life balance Real pleasure of working Promotion of education and career growth Fair wage
Staff Staff Staff Staff Staff Staff
Occupational Health and Safety
Safety and occupational health of related parties Quality of life and hygiene of construction workers Knowledge sharing with LPN Team for mutual development and growth Development of capacity of staff following the LPN Way in response to business growth Knowledge sharing with the public and educational institutions via study visit and lecture
LPN Team + Construction workers LPN Team + Construction workers LPN Team
Diversity and Equal Opportunity
Creation of jobs and upgrade of quality of life of underprivileged women
Staff
Local Communities
Responsibility towards construction impacts Development and improvement of infrastructure of neighboring communities Corporate governance and risk management Anti-corruption action
Neighbors, LPN Team
Training and Education
Anti-Corruption
Staff
Public
Neighbors, LPN Team, Public Shareholders, Staff LPN Team, Staff
148 SUSTAINABILITY REPORT 2015
Independent Assurance Statement To L.P.N. Development PCL on the Sustainable Development Report 2015 L.P.N. DEVELOPMENT PCL or LPN requested Thaipat Institute
(the
Foundation
for
Thailand
Rural
Reconstruction Movement under Royal Patronage) to carried out an assurance engagement response to the Sustainable Development Report 2015 Criteria for report preparation
The Global Reporting Initiative (GRI) Sustainability Reporting Guidelines version 4, in accordance with the Guidelines using ‘Core’ option Criteria for assurance standards
The AA1000 Assurance Standard (AA1000AS 2008)
Addressee The intended users of this assurance statement are the management of LPN and its associated stakeholders. Scope of Assurance The scope of this assurance engagement based on Type 1, AccountAbility Principles: evaluation of adherence to the AA1000 AccountAbility Principles and to the GRI Sustainability Reporting Guidelines version 4 in accordance with ‘Core’ option. The scope of this assurance engagement does not provide conclusions on the reliability of the performance information. Disclosures Covered The assurance engagement is based on information that is publicly disclosed on the Sustainable Development Report 2015 of LPN for the year ended 31 December 2015. Methodology We carried out Type 1 moderate assurance in accordance with AA1000AS. The Type 1 engagement requires us to report on the nature and extent of adherence to AA1000 APS. To achieve moderate level assurance we have used the criteria in AA1000AS to evaluate adherence to AA1000APS. We undertook the following procedures:
Reviewed the policies, practices, management systems and processes and performance information to be included within the Sustainable Development Report 2015 of LPN
Analyzed information on performance provided in the Sustainable Development Report 2015 of LPN as a source of evidence to evaluate adherence to the principles and guidelines
Inquired the processes LPN undertaken to adhere to the principles of inclusivity, materiality and responsiveness
Assessed the extent to which LPN has applied the GRI Reporting Framework including the Reporting Principles
Provided observations/recommendations to LPN in accordance with the Scope of Assurance based on defined criteria
Findings and Conclusions
Based on the scope of assurance using the AA1000AS (2008), we conclude that LPN has applied processes and procedures that adhere with the principles of inclusivity, materiality and responsiveness as set out in the AA1000APS (2008); and
Based on the scope of assurance using the GRI G4 Reporting Framework, we conclude that LPN has followed Reporting Principle and Standard Disclosures in a reasonable and balanced presentation of information and consideration of underlying processes for preparing the report Observations and Recommendations Nothing came to our attention which caused us to believe that the Sustainable Development Report 2015 of LPN did not adhere to the Principles. To improve future reporting of Sustainability in accordance with AA1000APS, we have made following observations: Inclusivity: The report shows engagement of stakeholders in various channels as well as brief practices to stakeholders. However, it is also recommended that clearly indicate basis for selection of stakeholders with whom to engage and respond
149 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
practices by interest and expectation stakeholders group should be included in the next reporting period. Materiality: LPN shows briefly its reporting process. However, more detailed in each stage are preferred such as the way to select materiality aspects and boundaries. Responsiveness: LPN demonstrates its intensive response to the material issues that affect sustainability performance through governance structure, sustainable policy, strategies, SD actions and performances. However, to determine targets and timeline should consider S.M.A.R.T. concept (Specific, Measurable, Achievable, Relevant, and Time Bound). To improve future sustainability reporting in relation to GRI Reporting Framework, we have made the following suggestions:
Performance Disclosure on Economic should state direct economic value generated and
distributed on an accruals basis.
materials type (Renewable/Non-renewable).
Performance Disclosure on Materials should include weight or volume of materials used by Performance Disclosure on Energy should include the energy reductions requirements of
by gender. Performance Disclosure on Occupational Health and Safety should be indicated types of injury, injury rate (IR), occupational diseases rate (ODR), lost day rate (LDR), absentee rate (AR) and work-related fatalities for independent contractors.
Competencies and Independence Thaipat Institute is a public organization established in 1999 with its roles in researching, training, and consulting in corporate responsibility and sustainability practices. Thaipat Institute is an AA1000AS (2008) Licensed Providers granted by AccountAbility, the creator and proprietor of the AA1000 Assurance Standard. Thaipat Institute has become the first GRI Organizational Stakeholder in Thailand since 2010 and has been certified as GRI training partner in Thailand, Indonesia, Malaysia, Philippines, Vietnam, and Singapore. Our team has the relevant professional and technical competencies and experience in corporate responsibility and sustainability for several years. During FY2014, we did not provide any services that relate to the report writing process to LPN that could conflict with the independence of this work.
sold products and services, in joules. Performance
Disclosure
on
Water
should
include percentage of water recycled and
employed 12 months after their return to work,
For Thaipat Institute
reused compare with total water withdrawal. Performance
Disclosure
on
Effluents
and
Wastes should be indicated in total volume of planned and unplanned water discharges, total weight of hazardous and non-hazardous waste,
by disposal methods. Performance
Disclosure
on
Overall
(Environment) should be indicated type of total environmental waste
remediation
protection
disposal,
expenditures
emissions
costs,
by
treatment,
prevention
and
environmental management costs. Performance
Disclosure
on
Products
and
Services should be indicated quantitatively the extent to which environmental impacts of
products and services have been mitigated. Performance Disclosure on Anti-Corruption should include numbers and percentages of higher executives, employees, and business partners who receive communications of anticorruption policies and procedures. Those engagements
should
be
performed,
and
documented as evidence-based processes. Performance Disclosure on Employment should include total employees who returned to work after parental leave ended who were still
By Vorranut Piantam Bangkok 2 march 2016
150 SUSTAINABILITY REPORT 2015
GRI INDEX GENERAL STANDARD DISCLOSURES GENERAL Page Number STANDARD (or Link) DISCLOSURES STRATEGY AND ANALYSIS
G4-1 G4-2
NOTE
SD 3-5, 8 SD 12 ; AR 143-144, 223-225
ORGANIZATIONAL PROFILE
G4-3 G4-4 G4-5 G4-6 G4-7 G4-8 G4-9 G4-10 G4-11 G4-12 G4-13 G4-14 G4-15 G4-16
SD 6 AR 227-230 SD 6 SD 6 AR 71-73 AR 231-235 AR 12-13 SD 140 SD 144 SD 20-23 AR 188-192 SD 145 SD 16-17, 28-29 -
The Company is not a member of such associations or organisations.
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17 G4-18 G4-19 G4-20 G4-21 G4-22
SD 6 SD 145 SD 24-25, 146-147 SD 146-147 SD 146-147 -
G4-23
SD 144
STAKEHOLDER ENGAGEMENT
G4-24 G4-25 G4-26 G4-27
SD 9 SD 19 SD 26-27 SD 26-27
REPORT PROFILE
G4-28 G4-29 G4-30 G4-31 G4-32 G4-33
SD 145 SD 145 SD 145 SD 152 SD 150-152 SD 148-149
GOVERNANCE
G4-34
AR 194-201
There are no restatements of information provided in previous reports.
External Assurance
151 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED
SPECIFIC STANDARD DISCLOSURES GENERAL Page Number STANDARD (or Link) DISCLOSURES ETHICS AND INTEGRITY
G4-56 G4-57 G4-58
Identified Omission(s)
Reason(s) for Omission(s)
SD 7, 12 ; AR 211-216 SD 46 SD 46
DISCLOSURES ON MANAGEMENT APPROACH G4-DMA
SD 16-23, 32, 34-35
INDICATORS BY ASPECTS CATEGORY: ECONOMIC ECONOMIC PERFORMANCE
G4-DMA G4-EC1
SD 58 SD 58, 60 ; AR 10-13, 91-97
CATEGORY: ENVIRONMENTAL MATERIALS
G4-DMA G4-EN1
SD 52, 55 SD 52, 55, 89
ENERGY
G4-DMA G4-EN6 G4-EN7
SD 51-52, 55, 103 SD 103 SD 51-52, 55
WATER
G4-DMA G4-EN10
SD 102 SD 102
EFFLUENT AND WASTE
G4-DMA G4-EN23
SD 101 SD 101
PRODUCTS AND SERVICES
G4-DMA G4-EN27
SD 50-55 SD 4, 54
OVERALL
G4-DMA G4-EN31
SD 76-85, 111-114 SD 113
SUPPLIER ENVIRONMENTAL ASSESSMENT
G4-DMA G4-EN33
SD 14-15 SD 15
ENVIRONMENTAL GRIEVANCE MECHANISMS
G4-DMA G4-EN34
SD 91-93 SD 71, 92
CATEGORY: SOCIAL SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK EMPLOYMENT
G4-DMA G4-LA1 G4-LA2 G4-LA3
SD 36-39 SD 141 SD 143-144 SD 143
Explanation for Omission(s)
External Assurance
152 SUSTAINABILITY REPORT 2015
SPECIFIC STANDARD DISCLOSURES GENERAL STANDARD DISCLOSURES
Page Number (or Link)
Identified Omission(s)
Reason(s) for Omission(s)
CATEGORY: SOCIAL SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK OCCUPATIONAL HEALTH AND SAFETY
G4-DMA G4-LA6
SD 39, 82 SD 141
TRAINING AND EDUCATION
G4-DMA G4-LA9 G4-LA10
SD 117-125 SD 120 SD 118-119
DIVERSITY AND EQUAL OPPORTUNITY
G4-DMA G4-LA12
SD 42-43 SD 140
EQUAL REMUNERATION FOR WOMEN AND MEN
G4-DMA G4-LA13
SD 42-43 SD 42, 142
LABOR PRACTICES GRIEVANCE MECHANISM
G4-DMA G4-LA16
SD 48 SD 46 SUB-CATEGORY: SOCIETY
LOCAL COMMUNITIES
G4-DMA G4-S02
SD 91-93, 126, 129-132 SD 91, 93-95
ANTI-CORRUPTION
G4-DMA G4-S04 G4-SO5
SD 13, 44, 47 SD 13, 44, 47 SD 46 SUB-CATEGORY: PRODUCT RESPONSIBILITY
PRODUCT AND SERVICE LABELING
G4-DMA G4-PR5
SD 64-73 SD 73
For more information, please contact: Investors Relation Department : Mr. Suriya Suriyabhivadh Email Address : IR@lpn.co.th Telephone : (02) 285-5011 (G4-31)
Explanation for Omission(s)
External Assurance