13 January 2015

To our stakeholders,

We are committed to making the Global Compact and its principles part of the strategy, culture and day-to-day operations of our company, and to engaging in collaborative projects which advance the broader development goals of the United Nations, particularly the Millennium Development Goals.

Sincerely yours,

Krip Rojanastien
Chairman & CEO

Chiva-Som respects and agrees to follow the Universal Declaration of Human Rights for our stakeholders as well as local laws, and promotes ongoing human resource development for our employees.

Chiva-Som follows the 10 principles set forth by the Global Compact. Management ensures that violations to human rights are not acceptable. Employee working hours adhere to local laws and working conditions are above average. An employee suggestion box is in place.

This is the first COP for Chiva-Som and no incidents or violations of Universal Human Rights have occurred.

Chiva-Som recognizes the rights of employees, does not employ children and does not engage in any form of forced labor.

Chiva-Som distributes the Employee Welfare Manual to all staff outlining welfare and benefits including medical and dental insurance, meals, housing, transportation, social security, workmen’s compensation, provident fund, staff loans, funeral financial assistance, scholarship provision for employees’ children, annual leave, training leave, uniforms and shoes. An employee suggestion box is in place. Annual health check-ups are provided for employees. Service charge is provided in addition to monthly salary.

Chiva-Som has had no legal cases or fines resulting from company labor practices. The company respects and employs a diversity of gender, ethnicity and age throughout the operation.

Chiva-Som Policy on Environmental & Social Sustainability (implemented in 2008)

Chiva-Som International Health Resorts Co., Ltd. remains committed to the preservation of our planet Earth and proactively involved in conserving our precious natural resources. Several initiatives, policies and practices are in place to sustain our organisation and grow into the future with an environmentally responsible and ethical approach. New and innovative green initiatives are constantly being explored throughout the resort and we seek eco-friendly alternatives wherever possible including energy saving and natural resource conservation practices, building design, cleaning products and waste minimisation. Corporate Social Responsibility is paramount in developing our staff members and their families while reaching out with social welfare and education programmes in the local community.

I. Greenhouse Gas Emissions
Through environmental stewardship we aim to continually decrease our greenhouse gas emissions to approach carbon neutrality by engaging in alternative energy, renewable energy and carbon offsetting programmes.

II. Energy Efficiency, Conservation and Management
It is our collective mission to decrease the usage and dependency on non-renewable fossil fuels and electricity through energy-saving technologies and practices.

III. Management of Freshwater Resources
We shall strive to minimise freshwater consumption and continue to implement water-saving practices and innovative technologies throughout the resort. Rainfall is harvested within the perimeter of the resort and our policy to increasingly minimise water discharge from our boundaries safeguards external water sources from pollution.

IV. Ecosystem Conservation and Management
With human activity at the heart of our organisation, our approach to ecosystem conservation and management is to preserve and optimise its use without damaging it. The resort was designed adapting to the existing biodiversity and contour of the natural terrain and carefully built with minimal impact on the ecosystem. By propagating indigenous species of living resources, the lush natural setting was achieved providing sustainable use in an equitable way.

V. Management of Social and Cultural Issues
It is our core value to partner with state agencies in nurturing the environment and thus give back to the community the benefits derived from it by spearheading social, cultural and environmental activities in the name of Preserve Hua Hin Group. An altruistic collaboration by Chiva-Som, local businesses, state agencies and dedicated volunteers in the Hua Hin municipality, PHHG is a multi-faceted effort to preserve the beauty and protect the natural environs of the local community, which has sponsored events such as outdoor concerts, marathons, art exhibitions and other activities since 2004. The proceeds generated through donations and sponsorship are directed toward the funding and promotion of environmental awareness, education and preservation activities.

VI. Land Use Planning and Management
Efficiently planned on seven acres of property, multi-level holistic health facilities, accommodation buildings and restaurants are located within short refreshing walks through lush tropical gardens. The resort was designed by blending aspects of traditional Thai architecture with natural diversity in a welcoming atmosphere while a large lake with waterfalls and tall trees accentuate serenity. We always analyse any potential impact before considering internal construction or modification.

VII. Air Quality Protection and Noise Control
Located beachfront with the fresh sea breeze, we continually strive to maintain Chiva-Som as a sanctuary free from the distractions of the outside world and avoid any noise-producing devices. The resort is smoke-free and internal acoustic privacy is achieved via sound-barring perimeter walls and natural hedges. The use of mobile phones and personal computers is not permitted in public areas of the resort.

VIII. Waste Water Management
Through resource recovery practices, waste water is collected and treated onsite in a multi-stage treatment process consisting of carbon and sand filtration. This water is then re-used for landscape irrigation, maintaining resort lake levels and supply water to the Resort chiller’s cooling tower.

IX. Waste Minimisation, Reuse and Recycling
The resort operates on a low waste continuum and it is our policy to reduce, reuse and recycle. Plastic, glass, metal, wood and paper products are separated and delivered to a recycling facility and perishable food items are distributed to the local livestock producers for animal feed. Plant waste from maintaining the landscape is collected and converted into nutrient-rich compost for existing plants.

X. Storage and Use of Environmentally Harmful Substances
As Chiva-Som is committed to achieving excellence in providing a healthy and safe environment, it is our policy to comply with all applicable health, safety and environmental protection laws, regulations and requirements and all activities are conducted in a manner that ensures the protection of staff, guests and the environment. Eco-friendly products are continually sought after to replace potentially hazardous substances.

XI. Community Well-being
As corporate and community environmental and social sustainability are interwoven, Chiva-Som shall continually work toward improving the health, well-being and livelihood of the community by focusing on social welfare programmes, hiring local staff with ongoing human resource development, and purchasing local fresh food, products and services whenever possible.

XII. Continuing Sustainability Education
We shall continue communicating to our staff and guests the objectives and practices of our Policy on Environmental & Social Sustainability to increase awareness and collectively carry forward our intentions, and encourage our suppliers to adapt their practices to meet our goals.

This policy is reviewed semi-annually to ensure and optimise continual process improvement and adherence to environmental and sustainability objectives.

In 2013 Chiva-Som engaged with the Clinton Climate Initiative's Energy Efficiency Building Retrofit Program and replaced the lighting and air conditioning systems. Replaced over 2,600 inefficient light bulbs with all LED technology, and the original air-cooled chiller was replaced with a new energy efficient water-cooled chiller. This reduced electricity consumption by 26% with and a related 20% reduction in carbon footprint.
Three hundred square meters of solar water heating panels are used to preheat the water in the Resort, supplying the spa, accommodation, kitchens and laundry operations to reduce our annual gas consumption by nearly 50%.
Waste water and rainfall are collected and processed through tertiary treatment and reused in the Resort. to maintain the Resort lake level and irrigate the lush, green landscape, and also used to clean paved areas and sidewalks, and provides water for the chiller’s cooling tower.
Chiva-Som is currently preparing for LEED certification and is going to upgrade the facility for more efficient use of energy and natural resources, sustainable materials, and indoor environmental quality.
The resort operates on a low waste continuum and it is our policy to reduce, reuse and recycle to minimize any waste sent to landfill. Plastic, glass, metal, wood and paper products are separated and delivered to a recycling facility and perishable food items are distributed to the local livestock producers for animal feed. Plant waste from maintaining the landscape is collected and converted into nutrient-rich compost for existing plants without applying chemicals on the soil.
In 2008, 130,000 plastic drinking water bottles supplied to our guests annually were eliminated from the operation when we installed reverse osmosis purification systems in various areas of the Resort. Our guests are given personal stainless steel containers to refill during their stay and take home for future use. This initiative eliminated the carbon footprint and energy consumed for the production and transportation of plastic bottled water, as well as the plastic recycling process. Biodegradable plastic products are being investigated as an alternative to reduce the amount of waste going to landfill. Biodegradable plastic products are being investigated.
In terms of our commitment to food safety, the Resort maintains GMP and HACCP Certifications and recently renovated the kitchens, receiving and storage areas to comply with Codex Alimentarius international food preparation regulations.
While growing many of our own fruits, vegetables, herbs and flowers without the use of harmful chemicals, the Chiva-Som Organic Farm follows simple practices such as composting organic waste from the Resort to produce nutrient-rich fertilizer. The fresh produce is used in our spa cuisine as well as some organic spa treatments.
This past summer the staff taught students to create organic gardens at two local schools and the produce is used in the schools’ kitchens to prepare meals for the students, teachers and staff.
In terms of community engagement and inclusion, Chiva-Som remains an integral part of Hua Hin and partners with a diverse stakeholder groups under the Preserve Hua Hin movement, namely the Hua Hin Municipality, local businesses, schools, and like-minded other organizations. With focus to reduce the ecological footprint of Hua Hin’s growing population, Chiva-Som formed the Preserve Hua Hin Group as a community development organization in 2004 and is under Royal Patronage of HRH Princess Maha Chakri Sirindhorn. Preserve Hua Hin organizes events such as carbon neutral, climate positive outdoor music festivals, marathons, reforestation projects and beach clean-ups to promote environmental awareness and preservation, and to increase social interaction in the local community.
Preserve Hua Hin organizes Mangrove Ecosystem Study Camps to help local students gain first-hand knowledge of the mangrove ecosystem and other environmental issues including climate change and environmental degradation caused by human activity and commercial development. Recognized as Junior Ambassadors, the students learn about the symbiotic relationship between plants, animals and water to help them understand both the stability and fragility of the ecosystem, and develop respect for nature.
In our ongoing effort of environmental preservation and education, we are currently developing the Mangrove Ecosystem Preservation & Science Education Center, or MEPSEC Hua Hin, in the last remaining urban mangrove in Hua Hin. MEPSEC Hua Hin is a collaboration with the scientists and academics of Silpakorn University, partnering corporate social responsibility with university social responsibility.
Chiva-Som and Preserve Hua Hin have been leading the reforestation project at the Khao Krai Lart mangrove since 2007 and over 1,000 seedlings have been planted so far. Research and planning are underway to restore another previously deforested area to a healthy reconstructed wetland with the planting of 2,500 seedlings native to the region.
With financial support from Chiva-Som, Silpakorn University has conducted extensive scientific research at the mangrove over the last year to determine its current condition. This included physico-chemical analysis of soil and water quality, biodiversity accounting of plants and animals, DNA sequencing of exotic bacteria fundamental to healthy mangrove ecosystems, an unmanned aerial survey by drone for 3-D mapping, and a socio-economic valuation survey of the local community to determine their perception of the MEPSEC project. The Faculty of Architecture has been instrumental in designing the MEPSEC construction drawings in preparation for LEED certification.
Open to the public in 2015 as the first ecotourism science center in Hua Hin, the state of the art education center is to be a showcase of sustainability demonstrating low environmental impact construction with a 1,000-meter elevated interpretive boardwalk throughout the mangrove. The facility is designed for carbon neutrality powered by renewable energy from a 70 kilowatt solar photo-voltaic array mounted on the rooftop. Energy efficient LED lighting and solar air-conditioning systems are incorporated into the design with waste water treatment and recycling for reuse.
Students are going to be invited to MEPSEC on a regular basis to learn about various sciences through presentations conducted by volunteer university professors and graduate students. Exhibition rooms and training rooms are in the plan with a paludarium for the public to inspect a mangrove ecosystem close-up.

Chiva-Som Integrated Wellness Initiative video link
https://www.youtube.com/watch?v=M7mcwKXuPfA

MEPSEC Hua Hin video link https://www.youtube.com/watch?v=HKdngGNzB4M

This is the first COP by Chiva-Som.
An investment grade energy audit was conducted through the Clinton Climate Initiative’s Energy Efficiency Building Retrofit Program in 2013.
The Resort reduced electricity consumption by 26% and related carbon emissions by 20% after replacing the lighting and chiller systems.
Chiva-Som has employed a full-time Sustainable Development Manager since 2007.
Chiva-Som has an Emergency Response Team, Firefighting Team and Medical Team.
There are no legal cases or investigations.

Chiva-Som supports the UN Convention Against Corruption and works to ensure all employees conduct fair and ethical business practices in accordance with the Convention.

A business code of conduct for anti-corruption is to be developed. A suggestion box is in place for employee opinions and concerns.

A specific anti-corruption policy is not in place. Any risk is managed through a commercial development process. Chiva-Som has had no issues of ethical misconduct and does not engage in corruption.