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Pwint Thit Sa / Transparency in Myanmar
Enterprises (TiME)
2019 Report – Launch
Agenda
2
1
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A renewed approach for the
next Pwint Thit Sa survey
Fostering transparency through
better corporate reporting
Q&A
ေန ာက္ ာမညက့ ပြငက့ သစကသစ အသစီရငကခံသစ အတြာက
ျပနက္မညက္နက္ သစကစ ္ေ နမညက္သစနသစကအ သစက
ပိုာိုော ငက္ာြနကေ ော ကပိုရတကအသစီရငကခံျခငက္
ျ ငက့ ပြငက့္ငက္ျာငက ာသအ ္ အ ္ေပ္ျာငက့တငကျခငက္
အော္အေျ ာက႑
Founders:
Current core funders:
• UK
• Norway
• Switzerland
• Netherlands
• Ireland
[previously also
Denmark]
www.myanmar-responsiblebusiness.org
and www.mcrb.org.mm
No. 6.A Shin Saw Pu Road, Sanchaung, Yangon
Tel/Fax: 01 01-512613
The Myanmar Centre for Responsible Business
(MCRB) was set up in 2013 by the Institute for
Human Rights and Business (IHRB) and the Danish
Institute for Human Rights (DIHR) with funding from
several donor governments.
Based in Yangon, it aims to provide a trusted and
impartial platform for the creation of knowledge,
building of capacity, undertaking of advocacy and
promotion of dialogue amongst businesses, civil
society, governments, experts and other
stakeholders with the objective of encouraging
responsible business conduct throughout Myanmar.
Responsible business means business conduct that
works for the long-term interests of Myanmar and its
people, based on responsible social and
environmental performance within the context of
international standards.
myanmar.responsible.business
www.mcrb.org.mm
Bonjour !
5
ာဂၤ္ ပါ။
We are a Myanmar consultancy.
Our goal? Transforming Myanmar’s
private sector and making it more
responsible, transparent and
sustainable.
Yever မညက ျာနကာ ့သစီ္ပြ ္ေရ္အအာံေပ္ာိုာကုီ
တသစကခို ျ သစကပါ မညက။ Yever၏ ရမညကရြယကခ်ာကာ
ျာနကာ ာိုငကငံ၏ ပိုဂၢ္ာ ာက႑အ ္ တ ဝနကယူာသ၊
တ ဝနကခံာသရျပီ္ ပြငက့္ငက္ျာငက ာသရ မညက့အျပငက
ေရရမညကတမညကတံ့ခိုငကျာေသစရနကအတြာက
ေျပ ငက္္ေပ္ရနက ျ သစကပါ မညက။
FOR PROFIT
o Corporate governance
o Business strategy
o Business transformation
o Corporate communication
FOR PROFIT
o ော ကပိုရတက သစီာံအိုပကခ််ဳပကာသ
o သစီ္ပြ ္ေရ္ ာဟ ဗ််ဴဟ
o သစီ္ပြ ္ေရ္ အ ြငကေျပ ငက္ျခငက္
o ော ကပိုရတက္ာက္ံေရ္
PRO BONO PRO BONO
o Capacity building
o Research
o Advocacy
o Capacity building
o ိုေတ န
o အအာံေပ္ျခငက္
Why Pwint Thit Sa ?
6
The objective of the Pwint Thit Sa project is to
incentivise better corporate disclosure of
corporate governance and non-financial
information by Myanmar companies through
publicly recognising them for their
transparency.
Intended to support Myanmar in achieving SDGs 16
ပြငက့ သစကသစ ၏ ရမညကရြယကခ်ာကာ အာ် ္ျပမညက ူာ ျာနကာ ာိုာကုီာ် ္၏
ပြငက့္ငက္ျာငက ရာသာို အ အာတကျပ်ဳေပ္ျခငက္ျ ငက့ ော ကပိုရတကသစီာံ
အိုပကခ််ဳပကာသ္ိုငကရ ာငက့ ဘက႑ ေရ္ာငက့ာ ာက္ိုငကေ အခ်ာကအ္ာက
ာ် ္ ပိုာိုပြငက့္ငက္္ ေသစေရ္အတြာက တိုာကတြနက္အ ္ေပ္ရနက
ျ သစက မညက။ေရရမညက ြံံျ ်ဳ္တိုာကတာကာသ ပနက္တိုငက အာတက၁၆
ေအ ငကျာငကေသစ္နက္မညက္ အေစ ာကအာူျ သစကေသစပါ မညက။
The Top 10 performers in 2018
7
42%
47%
50%
50%
53%
61%
65%
69%
73%
91%
0% 20% 40% 60% 80% 100%
YSF
Private
Private
Private
Private
Private
Private
Public
YSX
Private
Pwint Thit Sa 2018 also contains a summary
of Myanmar corporate governance reforms
Transparency elements introduced in the new Companies Law
– Directors duties and reports
– Consultation on draft Myanmar Companies (Electronic Registry System and
Miscellaneous Matters)Regulations 2018
• deadline 31 May 2018
• https://www.dica.gov.mm/en/news/myanmar-companies-law-2017-draft-regulations
Ongoing reforms to anti-Corruption Law
– Supplementary amendment to introduce company liability
Securities Exchange Commission 2015 Rules
– Covers YSX listed and OTC ‘public’ companies
Public Procurement Law reform
Environmental Impact Assessment
– Public consultation requirements and publication of reports
Myanmar Investment Law and Rules
– Screening of responsible business record of investors
– Rule 196 annual reports for projects with MIC Permits
Initiatives to promote corporate
governance and transparency in Myanmar
✓ IFC Myanmar Corporate Governance Initiative including cooperation with the UK Myanmar
Financial Services Task Force and Thai Institute of Directors, leading to launch of Myanmar
Institute Of Directors (MIoD) in March 2018 with IFC and UK government support
✓ Organisation Of Economic Cooperation And Development (OECD) Corporate Governance
Initiative with DICA and SECM – launched March 2018 leading to a Myanmar Corporate
Governance Code
✓ Extractives Industries Transparency Initiative (EITI) www.myanmareiti.org
– Myanmar has just submitted 2014/5 and 2015/6 reports
✓ Introduction of Construction Sector Transparency Initiative (CoST) into Myanmar
www.constructiontransparency.org
– Disclosure 40 data points relating to procurement projects, including audit
– Pilot survey to be conducted in Myanmar
✓ Top Taxpayers List from Internal Revenue Department
✓ Other G2G, Chambers (e.g. AmCham), and individual company initiatives
What else is in the Pwint Thit Sa report?
Contains Recommendations to
• Myanmar companies
• Myanmar government, Securities and Exchange Commission, parliament, Anti-
Corruption Commission
• Civil society organisations, media, and investor community
Follow up includes
• Advocacy to government, ACC, parliament etc on recommendations
• Preparation for Pwint Thit Sa 2019 – start in September, publish in early April 2019
• Voluntary ‘Mini Pwint Thit Sa’ benchmarking for large or medium companies not
covered
• Free training workshops for companies on anti-corruption, human rights policies and
due diligence, and grievance mechanisms, now in association with a group of
multinationals
• Engagement/alignment with various corporate governance initiatives and reforms
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A Renewed Approach for the
Next Pwint Thit Sa Survey
ေန ာက္ ာမညက့ ပြငက့ သစကသစ အသစီရငကခံသစ အတြာက
ျပနက္မညက္နက္ သစကစ ္ေ နမညက္သစနသစကအ သစက1
What do we assess?
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1 ာမညက မညက့အခ်ာကအ္ာကာ် ္ာို
အာျ တကာမညကနမညက္။
We will analyse
the company’s
website to find
data and
reports
A
ာိုာကုီာ် ္ာ
ဝာက္ိုဒကေပပတြငက
စိုတကျပနကစ ္ မညက့
အခ်ာကအ္ာကာ် ္ာငက့
အသစီရငကခံသစ ာ် ္ ာို
ေ့္္ ံို္ ပကာမညက။
Your
company
website
Social
media
Data &
statements
Reports,
policies, …
Our scorecard
combines
different
frameworks
B
အာတကေပ္သစမညက္ာ်မက္
မညက ာတူမညီေ
ာူေဘ ငကာ် ္ာို
ေပါငက္သစပကအ ံိုျပ်ဳ
စ ္ပါ မညက။
Corporate
Governance
Scorecard
Why did we decide to update
our methodology?
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1
The business landscape in Myanmar is evolving quickly. On the Corporate Governance side, the
publication of the Myanmar Sustainable Development Plan and the enforcement of the 2017
Company Law will contribute to reshaping practices further. Moreover, the ASEAN Corporate
Governance scorecard is becoming a standard. As a result, we decided to include more criteria in our
scorecard.
ျာနကာ ာိုငကငံ၏ သစီ္ပြ ္ေရ္နယကပယက မညက အ္်ငကအျာနကတို္တာက္ ျပီျ သစက မညက။
ော ကပိုရတကသစီာံအိုပကခ််ဳပက္ိုငကရ ာက႑တြငက ္ာကတေ္ ၌ စိုတကျပနကစ ္ေ ျာနကာ ာိုငကငံ၏
ေရရမညကတမညကတံ့ျခငက္္ိုပကငနက္သစမကအရ ာိုာကုီမပေဒအ သစက၏ တိုာကတြနက္္ံ်ဳ ေ္ ကာသျ ငက့ ေန ာကပိုငက္
္ိုပကငနက္ာ်ငက့သစမကာ် ္ာို ျပနက္မညကပံိုေ က ေတ ့ာမညကျ သစက မညက။ စိုံအျပငက အ ္ီယံ
ော ကပိုရတကသစီာံအိုပကခ််ဳပကာသ္ိုငကရ ရာတက ာတကတာက္ မညက သစံစ ္သစရ တသစကခိုျ သစက္ မညက။ ရ္ဒကအေနျ ငက့
ာြ်ာိုကပကတိုံ၏ ရာတက ာတကတာက္တြငက သစံ တကာတကခ်ာကာ် ္ပိုာိုစမညက့ ြငက္ရနက ္ံို္ျ တကခ့ မညက။
REFLECTING RECENT CHANGES IN MYANMAR
ယခငကနမညက္သစနသစကာို အ္ငက့ျာငက့တငကရနက
အဘယကေအာ ငက့ ္ံို္ျ တကခ့ နမညက္။
္တကတေ္ ျာနကာ ာိုငကငံ၏ တို္တာကေျပ ငက္္္ ာသာ် ္အ ္
စငကဟပကေသစျခငက္
Why did we decide to update
our methodology?
14
1
• To keep challenging the leading companies, we have included some new criteria to check
the sustainability of their performance and business model.
• To expand the scope of our survey, we have decided for the first time to review some SOEs.
• To have more time to engage and provide the companies with more time to update and
enhance their disclosure.
• မီ္ေ္ ငကာိုာကုီာ် ္အ ္ ၄ငက္တိုံ၏သစြာက္ေ္ ငကာိုငကာသာို တို္၍သစာက္ ပကအာျ တက ာိုငကရနက
ေရရမညကတမညကတံ့ေ ္ိုပကငနက္ေ္ ငကရြာကာသာငက့ သစီ္ပြ ္ေရ္ပံိုသစံ္ိုငကရ
သစံ တကာတကခ်ာကအ သစကာ် ္အ ္ စပကာံစမညက့ ြငက္စ ္ မညက။
• ာြ်ာကိုပကတိုံ၏ သစသစကတာက္ော ာကာသနယကပယကာိုခ် စြငကာိုငကရနက အခ််ဳ ာိုငကငံပိုငက ာိုာကုီာ် ္အ ္
သစတငကေ့္္ အာျ တကာမညကျ သစက မညက။
• ာိုာကုီာ် ္ာငက့ ပိုာိုေ္ြ္ောြ္ာိုငကရနကာငက့ ာိုာကုီာ် ္အ ္ ၄ငက္တိုံာ
ပြငက့္ငက္ျာငက ာသ္ိုငကရ အ္ငက့ျာငက့တငကာသာ် ္ာို အခ်နက္ံိုေ္ ာကသစြ ျ ငက့ ေ္ ငကရြာကာိုငကရနက
္ိုပကငနက္သစမကာို အခ်နကပိုာိုရရရနက ္ိုအပကပါ မညက။
ယခငကနမညက္သစနသစကာို အ္ငက့ျာငက့တငကရနက
အဘယကေအာ ငက့ ္ံို္ျ တကခ့ နမညက္။
What will be in PTS 2019?
1
✓ 98 questions (142 criteria).
✓ Almost all PTS 2018 criteria kept (3 deleted).
✓ 68 criteria were added, 80% from ASEAN
Scorecard; 29% aligned with Integrated Reporting
framework.
✓ Structure of the criteria changed to balance
weight of each dimension.
✓ ပြငက့ သစကသစ ၂၀၁၉တြငက ော္ခြနက္ေပါငက္ (၉၈)ခိုပါရ မညက။ (သစံ တကာတကခ်ာက
(၁၄၂)ခိုာို အာတကေပ္ ြ ္ာမညကျ သစက မညက။)
✓ ပြငက့ သစကသစ ၂၀၁၈၏ သစံ တကာတကခ်ာက ေတ ကေတ ကာ် ္ာ် ္ ျပနက္မညကပါဝငက
ပါ မညက။ (၃ခိုာို ်ာကစ ္ပါ မညက။) ိုံေ က သစံ တကာတကခ်ာက
အ သစက (၆၈)ခိုာို စမညက့ ြငက္စ ္ျပီ္ ၈၀% မညက
အ ္ီယံော ကပိုရတကသစီာံ အိုပကခ််ဳပကာသ္ိုငကရ ရာတကာတကတာက္ာ
စမညက့ ြငက္စ ္ျခငက္ျ သစကျပီ္ ၂၉%ာ Integrated Reporting ာူေဘ ငကာ
စမညက့ ြငက္စ ္ျခငက္ျ သစက မညက။
✓ နယကပယကတသစကခိုျခငက္သစီအ ္ ာ်တသစြ ပါဝငကာိုငကရနက သစံ တကာတကခ်ာကာ် ္၏
ြ သစမညက္ပံိုာို ေျပ ငက္္ ြ သစမညက္စ ္ မညက။
68%
9%
9%
7%
7%
33%
16%25%
26%
Corporate governance Corporate profile
Reporting Sustainability management
Communication
PTS 2018
Structure
PTS 2019
Structure
4 sections and 21 topics are
covered
1 ာက႑ (၄)ခိုာငက့ အေအာ ငက္အရ (၂၁)ခို
ပါဝငကပါ မညက။
✓ Communication section in PTS2018 now split
between Corporate Profile and Reporting.
✓ Sustainability Management now includes some
items that were previously under Corporate
Governance.
✓ ယခငက သစသစကတာက္ော ငကျခငက္တြငကပါဝငကေ ္ူာသ္ာက္ံေရ္
ာက႑ မညက ယခိုအေခါာကတြငက corporate profile ာငက့ အသစီရငကခံျခငက္
္ို မညက့ေခါငက္သစမက (၂)ခို အျ သစကျပနက္မညကပါဝငကပါ မညက။
✓ ေရရမညကတမညကတံ့ာိုငကာသ္ိုငကရ သစီာံခနကံခြျခငက္ာက႑တြငက ယခိုအခါ၌
ော ကပိုရတကသစီာံအိုပကခ််ဳပကာသာက႑တြငက ယခငကာပါဝငကခ့ေ အေအာ ငက္
အရ တသစကခ််ဳ ာိုစမညက့ ြငက္စ ္ပါ မညက။
Corporate Profile
Company's presentation
Ownership structure
Company' strategy
Corporate communication
Corporate Governance
Shareholders' Engagement
Board of directors' structure
Board of directors' responsabilities
Audit committee
Nominating committee
Remuneration Committee/ Compensation Committee
Performance review & board appointments
Sustainability management
Risk management
Strategy
Corporate policies
Business ethics
Whistleblowing
Sustainability reporting
Reporting
Annual report
Framework
Financial & operations
Non Financial
We aim to better
differentiate the companies’
results...
1 ာိုာကုီာ် ္၏ ရ္ဒကာ် ္ာို ပိုာိုော ငက္ာြနကသစြ
ပိုငက္ျခ ္ာိုငကရနက ရမညကရြယကပါ မညက။
PTS 2019 differentiates two types of criteria to
better assess quality and transparency of corporate
disclosure.
• “Disclosure criteria” help assess how systematic
and consistent a company’s disclosure is.
• “Performance criteria" focus on identifying
companies that are transforming their business
model to improve sustainability.
အ္ငက့ တကာတကရ တြငက ပိုာိုစေရ ာကေသစရနက
ပြငက့္ငက္ျာငက ာသာိုတိုငက္တ ေ သစံ တကာတကခ်ာကာငက့
္ိုပကေ္ ငကာသအရမညကအေ ြ္ာိုတိုငက္တ ေ သစံ တကာတကခ်ာကာ် ္ဟူ၍
(၂)ာ််ဳ္ခြစ ္ပါ မညက။
• “ပြငက့္ငက္ျာငက ာသာိုတိုငက္တ ေ သစံ တကာတကခ်ာကာ် ္”တြငက
ာိုာကုီာ် ္ာ အာ် ္ျပမညက ူ ရေသစရနက စိုတကေ ကျပ စ ္
ေ အခ်ာကအ္ာကာ် ္ မညက ာမညကာ်သစနသစကတာ်ျ သစက၍ ခိုငကာ
ေ အခ်ာကအ္ာကာ် ္ျ သစကေအာ ငက္ာို အာျ တက ြ ္ာမညက
ျ သစက မညက။
• “္ိုပကေ္ ငကာသအရမညကအေ ြ္ာိုတိုငက္တ ေ သစံ တကာတက
ခ်ာကာ် ္” တြငက ာိုာကုီာ် ္ာ ၄ငက္တို ၏ သစီ္ပြ ္ေရ္ပံိုသစံာို ပိုာို
ေရရမညကတမညကတံ့ ေသစာိုငကရနက ာမညကာ့ ို ေျပ ငက္္တို္တာက
ေအ ငက ေ္ ငကရြာကေနပံိုာို တိုငက္တ ြ ္ာမညကျ သစက မညက။
PTS 2018
Structure
PTS 2019
Structure
Type of criteria Number Score
Disclosure 74 74
Score Max 74
Type of criteria Number Score
Disclosure 119 119
Performance 23 46
Score Max 165
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Corporate profile Corporate governance Sustainability management Reporting
Performance criteria’s distribution
... and to review 251
companies
1
ာိုာကုီ (၂၅၁)ခိုာို ေ့္္ အာျ တကာမညက
ျ သစက မညက။
5
55
164
27
Breakdown by
Ownership Type
5
55
123
27
3
38
Reasons for
Inclusion
73
178
Share of New
Companies
New
Previously surveyed
Listed
Public
State-owned
Private
Volunteer
Top tax payers Influential
Extended timeline
1
Feb.
2019
Nov.
2018
Oct.
2018
Dec.
2018
Jan.
2019
March
2019
1st assessment
made by Yever
Engagement
2nd assessment
made by Yever
2019
SURVEY
အခ်နက တကာတကခ်ာကာ် ္
• ာိုဝငကဘ ္အေသစ ပိုငက္ - ပစာအႀာာကအာျ တကာသ
အျပီ္ တကျခငက္
• ာိုဝငကဘ ္္ယက - ာိုာကုီာ် ္ာငက့ ေ္ြ္ောြ္ျခငက္
• ေ ေ ကဝါရီ္္ယက - ေန ာက္ံို္အႀာာက အာျ တကျခငက္ာငက့
ရ္ဒကာ် ္အ ္ တသစိုတေဝ္တမညက္တြာကခ်ာကျခငက္
• ၂၀၁၉ခိုာသစက အာၤနကာတိုငကာီ - ပြငက့ သစကသစ ၂၀၁၉ ရ္ဒက
Q&A
3
!
21
2 Fostering Transparency Through
Better Corporate Reporting
ပိုာိုော ငက္ာြနကေ ော ကပိုရတကအသစီရငကခံျခငက္
ျ ငက့ ပြငက့္ငက္ျာငက ာသအ ္ အ ္ေပ္ျာငက့တငကျခငက္
What makes a company a leader
in sustainable development?
2
ေရရမညကတမညကတံ့ာိုငကျခငက္ဟို္ိုရ တြငက
(Source: Globescan 2018 Sustainability Leaders Survey)
Long-term commitment
Integrated sustainability values
Part of core business model / strategic approach
Communication / reporting /
advocacy
Executive leadership has strong SD
values / strong leadership
20%
Ambitious targets/policies /
commitment to SDGs
Sustainable products/services /
product lifecycle
Innovation / R&D
Results / walk the talk
26%
12%
26%
16%
15%
10%
17%
12%
11%
13%
11%
8%
8%
10%
9%
7%
6%
2018
2017
How can you improve disclosure in PTS2019? Some
good practice international and Myanmar examples….
23
2 #Q5 (Corporate Profile: Presentation) – Does the company clearly explain their
business model, and how it creates value for stakeholders?
25
28
EBITDA stands for earnings before interest, taxes, depreciation and amortisation.
29
30
31
32
33
2
#Q11 (Corporate Profile; strategy) – Does the company clearly explain their goals,
and how they want to achieve them?
37
38
39
2 Q13 (Corporate Profile, Company’s strategy): Does the company clearly explain to what
extent it has achieved its strategic objectives for the period and what its outcomes in
terms of effects on the capitals are?
41
42
43
How can you improve disclosure?
Examples > Corporate Governance
2 Q42 (Corporate Governance: Board of Directors’ Responsibilities) – Does the company
clearly explain how its governance structure supports its ability to create value in the
short, medium and long term?
45
46
47
49
51
52
53
54
55
2 Q65 (Sustainability Management: Risk) – Does the annual report clearly explain what the
specific risks and opportunities are that affect the organization’s ability to create value
over the short, medium and long term, and how the organization is dealing with them?
57
58
59
60
2 Q73 Sustainability Mangement: Strategy – Does the company clearly explain how the
materiality analysis is relevant to business issues?
62
63
64
2 Q75 (Sustainability management: Strategy) – Are the sustainability targets explicitly
aligned with the materiality analysis, with a high level of commitment and a
reasonable timeframe?
66
67
69
Sources of further information and help
Myanmar Institute of Directors
• http://myanmariod.com/
• Next training course: Audit Committee Master
programme 13/14 September
Online guides, international standards
• A selection is available on MCRB USB stick
Sustainability, governance and public relations
consultants
70
71
3 Q&A အော္အေျ ာက႑
Q&A and Contact Details
Please contact:
For MCRB, Phyu Phyu Zin
transparency@myanmar-
responsiblebusiness.org
For Yever, Nicolas Delange
transparency@yever.org
္ာက ြယက္ိုပါာ-
MCRB အတြာက
ျ ်ဴျ ်ဴဖငကtransparency@Myanmar-
responsiblebusiness.org
Yever အတြာက
Nicolas Delange transparency@yever.org
73
Thank you!
ော်္ဖူ္တငကပါတယက။

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Myanmar centre for responsible business (pwint thit sa)transparency in myanmar enterprises 2019 report

  • 1. Pwint Thit Sa / Transparency in Myanmar Enterprises (TiME) 2019 Report – Launch
  • 2. Agenda 2 1 2 3 A renewed approach for the next Pwint Thit Sa survey Fostering transparency through better corporate reporting Q&A ေန ာက္ ာမညက့ ပြငက့ သစကသစ အသစီရငကခံသစ အတြာက ျပနက္မညက္နက္ သစကစ ္ေ နမညက္သစနသစကအ သစက ပိုာိုော ငက္ာြနကေ ော ကပိုရတကအသစီရငကခံျခငက္ ျ ငက့ ပြငက့္ငက္ျာငက ာသအ ္ အ ္ေပ္ျာငက့တငကျခငက္ အော္အေျ ာက႑
  • 3. Founders: Current core funders: • UK • Norway • Switzerland • Netherlands • Ireland [previously also Denmark] www.myanmar-responsiblebusiness.org and www.mcrb.org.mm No. 6.A Shin Saw Pu Road, Sanchaung, Yangon Tel/Fax: 01 01-512613 The Myanmar Centre for Responsible Business (MCRB) was set up in 2013 by the Institute for Human Rights and Business (IHRB) and the Danish Institute for Human Rights (DIHR) with funding from several donor governments. Based in Yangon, it aims to provide a trusted and impartial platform for the creation of knowledge, building of capacity, undertaking of advocacy and promotion of dialogue amongst businesses, civil society, governments, experts and other stakeholders with the objective of encouraging responsible business conduct throughout Myanmar. Responsible business means business conduct that works for the long-term interests of Myanmar and its people, based on responsible social and environmental performance within the context of international standards. myanmar.responsible.business
  • 5. Bonjour ! 5 ာဂၤ္ ပါ။ We are a Myanmar consultancy. Our goal? Transforming Myanmar’s private sector and making it more responsible, transparent and sustainable. Yever မညက ျာနကာ ့သစီ္ပြ ္ေရ္အအာံေပ္ာိုာကုီ တသစကခို ျ သစကပါ မညက။ Yever၏ ရမညကရြယကခ်ာကာ ျာနကာ ာိုငကငံ၏ ပိုဂၢ္ာ ာက႑အ ္ တ ဝနကယူာသ၊ တ ဝနကခံာသရျပီ္ ပြငက့္ငက္ျာငက ာသရ မညက့အျပငက ေရရမညကတမညကတံ့ခိုငကျာေသစရနကအတြာက ေျပ ငက္္ေပ္ရနက ျ သစကပါ မညက။ FOR PROFIT o Corporate governance o Business strategy o Business transformation o Corporate communication FOR PROFIT o ော ကပိုရတက သစီာံအိုပကခ််ဳပကာသ o သစီ္ပြ ္ေရ္ ာဟ ဗ််ဴဟ o သစီ္ပြ ္ေရ္ အ ြငကေျပ ငက္ျခငက္ o ော ကပိုရတက္ာက္ံေရ္ PRO BONO PRO BONO o Capacity building o Research o Advocacy o Capacity building o ိုေတ န o အအာံေပ္ျခငက္
  • 6. Why Pwint Thit Sa ? 6 The objective of the Pwint Thit Sa project is to incentivise better corporate disclosure of corporate governance and non-financial information by Myanmar companies through publicly recognising them for their transparency. Intended to support Myanmar in achieving SDGs 16 ပြငက့ သစကသစ ၏ ရမညကရြယကခ်ာကာ အာ် ္ျပမညက ူာ ျာနကာ ာိုာကုီာ် ္၏ ပြငက့္ငက္ျာငက ရာသာို အ အာတကျပ်ဳေပ္ျခငက္ျ ငက့ ော ကပိုရတကသစီာံ အိုပကခ််ဳပကာသ္ိုငကရ ာငက့ ဘက႑ ေရ္ာငက့ာ ာက္ိုငကေ အခ်ာကအ္ာက ာ် ္ ပိုာိုပြငက့္ငက္္ ေသစေရ္အတြာက တိုာကတြနက္အ ္ေပ္ရနက ျ သစက မညက။ေရရမညက ြံံျ ်ဳ္တိုာကတာကာသ ပနက္တိုငက အာတက၁၆ ေအ ငကျာငကေသစ္နက္မညက္ အေစ ာကအာူျ သစကေသစပါ မညက။
  • 7. The Top 10 performers in 2018 7 42% 47% 50% 50% 53% 61% 65% 69% 73% 91% 0% 20% 40% 60% 80% 100% YSF Private Private Private Private Private Private Public YSX Private
  • 8. Pwint Thit Sa 2018 also contains a summary of Myanmar corporate governance reforms Transparency elements introduced in the new Companies Law – Directors duties and reports – Consultation on draft Myanmar Companies (Electronic Registry System and Miscellaneous Matters)Regulations 2018 • deadline 31 May 2018 • https://www.dica.gov.mm/en/news/myanmar-companies-law-2017-draft-regulations Ongoing reforms to anti-Corruption Law – Supplementary amendment to introduce company liability Securities Exchange Commission 2015 Rules – Covers YSX listed and OTC ‘public’ companies Public Procurement Law reform Environmental Impact Assessment – Public consultation requirements and publication of reports Myanmar Investment Law and Rules – Screening of responsible business record of investors – Rule 196 annual reports for projects with MIC Permits
  • 9. Initiatives to promote corporate governance and transparency in Myanmar ✓ IFC Myanmar Corporate Governance Initiative including cooperation with the UK Myanmar Financial Services Task Force and Thai Institute of Directors, leading to launch of Myanmar Institute Of Directors (MIoD) in March 2018 with IFC and UK government support ✓ Organisation Of Economic Cooperation And Development (OECD) Corporate Governance Initiative with DICA and SECM – launched March 2018 leading to a Myanmar Corporate Governance Code ✓ Extractives Industries Transparency Initiative (EITI) www.myanmareiti.org – Myanmar has just submitted 2014/5 and 2015/6 reports ✓ Introduction of Construction Sector Transparency Initiative (CoST) into Myanmar www.constructiontransparency.org – Disclosure 40 data points relating to procurement projects, including audit – Pilot survey to be conducted in Myanmar ✓ Top Taxpayers List from Internal Revenue Department ✓ Other G2G, Chambers (e.g. AmCham), and individual company initiatives
  • 10. What else is in the Pwint Thit Sa report? Contains Recommendations to • Myanmar companies • Myanmar government, Securities and Exchange Commission, parliament, Anti- Corruption Commission • Civil society organisations, media, and investor community Follow up includes • Advocacy to government, ACC, parliament etc on recommendations • Preparation for Pwint Thit Sa 2019 – start in September, publish in early April 2019 • Voluntary ‘Mini Pwint Thit Sa’ benchmarking for large or medium companies not covered • Free training workshops for companies on anti-corruption, human rights policies and due diligence, and grievance mechanisms, now in association with a group of multinationals • Engagement/alignment with various corporate governance initiatives and reforms 10
  • 11. 11 A Renewed Approach for the Next Pwint Thit Sa Survey ေန ာက္ ာမညက့ ပြငက့ သစကသစ အသစီရငကခံသစ အတြာက ျပနက္မညက္နက္ သစကစ ္ေ နမညက္သစနသစကအ သစက1
  • 12. What do we assess? 12 1 ာမညက မညက့အခ်ာကအ္ာကာ် ္ာို အာျ တကာမညကနမညက္။ We will analyse the company’s website to find data and reports A ာိုာကုီာ် ္ာ ဝာက္ိုဒကေပပတြငက စိုတကျပနကစ ္ မညက့ အခ်ာကအ္ာကာ် ္ာငက့ အသစီရငကခံသစ ာ် ္ ာို ေ့္္ ံို္ ပကာမညက။ Your company website Social media Data & statements Reports, policies, … Our scorecard combines different frameworks B အာတကေပ္သစမညက္ာ်မက္ မညက ာတူမညီေ ာူေဘ ငကာ် ္ာို ေပါငက္သစပကအ ံိုျပ်ဳ စ ္ပါ မညက။ Corporate Governance Scorecard
  • 13. Why did we decide to update our methodology? 13 1 The business landscape in Myanmar is evolving quickly. On the Corporate Governance side, the publication of the Myanmar Sustainable Development Plan and the enforcement of the 2017 Company Law will contribute to reshaping practices further. Moreover, the ASEAN Corporate Governance scorecard is becoming a standard. As a result, we decided to include more criteria in our scorecard. ျာနကာ ာိုငကငံ၏ သစီ္ပြ ္ေရ္နယကပယက မညက အ္်ငကအျာနကတို္တာက္ ျပီျ သစက မညက။ ော ကပိုရတကသစီာံအိုပကခ််ဳပက္ိုငကရ ာက႑တြငက ္ာကတေ္ ၌ စိုတကျပနကစ ္ေ ျာနကာ ာိုငကငံ၏ ေရရမညကတမညကတံ့ျခငက္္ိုပကငနက္သစမကအရ ာိုာကုီမပေဒအ သစက၏ တိုာကတြနက္္ံ်ဳ ေ္ ကာသျ ငက့ ေန ာကပိုငက္ ္ိုပကငနက္ာ်ငက့သစမကာ် ္ာို ျပနက္မညကပံိုေ က ေတ ့ာမညကျ သစက မညက။ စိုံအျပငက အ ္ီယံ ော ကပိုရတကသစီာံအိုပကခ််ဳပကာသ္ိုငကရ ရာတက ာတကတာက္ မညက သစံစ ္သစရ တသစကခိုျ သစက္ မညက။ ရ္ဒကအေနျ ငက့ ာြ်ာိုကပကတိုံ၏ ရာတက ာတကတာက္တြငက သစံ တကာတကခ်ာကာ် ္ပိုာိုစမညက့ ြငက္ရနက ္ံို္ျ တကခ့ မညက။ REFLECTING RECENT CHANGES IN MYANMAR ယခငကနမညက္သစနသစကာို အ္ငက့ျာငက့တငကရနက အဘယကေအာ ငက့ ္ံို္ျ တကခ့ နမညက္။ ္တကတေ္ ျာနကာ ာိုငကငံ၏ တို္တာကေျပ ငက္္္ ာသာ် ္အ ္ စငကဟပကေသစျခငက္
  • 14. Why did we decide to update our methodology? 14 1 • To keep challenging the leading companies, we have included some new criteria to check the sustainability of their performance and business model. • To expand the scope of our survey, we have decided for the first time to review some SOEs. • To have more time to engage and provide the companies with more time to update and enhance their disclosure. • မီ္ေ္ ငကာိုာကုီာ် ္အ ္ ၄ငက္တိုံ၏သစြာက္ေ္ ငကာိုငကာသာို တို္၍သစာက္ ပကအာျ တက ာိုငကရနက ေရရမညကတမညကတံ့ေ ္ိုပကငနက္ေ္ ငကရြာကာသာငက့ သစီ္ပြ ္ေရ္ပံိုသစံ္ိုငကရ သစံ တကာတကခ်ာကအ သစကာ် ္အ ္ စပကာံစမညက့ ြငက္စ ္ မညက။ • ာြ်ာကိုပကတိုံ၏ သစသစကတာက္ော ာကာသနယကပယကာိုခ် စြငကာိုငကရနက အခ််ဳ ာိုငကငံပိုငက ာိုာကုီာ် ္အ ္ သစတငကေ့္္ အာျ တကာမညကျ သစက မညက။ • ာိုာကုီာ် ္ာငက့ ပိုာိုေ္ြ္ောြ္ာိုငကရနကာငက့ ာိုာကုီာ် ္အ ္ ၄ငက္တိုံာ ပြငက့္ငက္ျာငက ာသ္ိုငကရ အ္ငက့ျာငက့တငကာသာ် ္ာို အခ်နက္ံိုေ္ ာကသစြ ျ ငက့ ေ္ ငကရြာကာိုငကရနက ္ိုပကငနက္သစမကာို အခ်နကပိုာိုရရရနက ္ိုအပကပါ မညက။ ယခငကနမညက္သစနသစကာို အ္ငက့ျာငက့တငကရနက အဘယကေအာ ငက့ ္ံို္ျ တကခ့ နမညက္။
  • 15. What will be in PTS 2019? 1 ✓ 98 questions (142 criteria). ✓ Almost all PTS 2018 criteria kept (3 deleted). ✓ 68 criteria were added, 80% from ASEAN Scorecard; 29% aligned with Integrated Reporting framework. ✓ Structure of the criteria changed to balance weight of each dimension. ✓ ပြငက့ သစကသစ ၂၀၁၉တြငက ော္ခြနက္ေပါငက္ (၉၈)ခိုပါရ မညက။ (သစံ တကာတကခ်ာက (၁၄၂)ခိုာို အာတကေပ္ ြ ္ာမညကျ သစက မညက။) ✓ ပြငက့ သစကသစ ၂၀၁၈၏ သစံ တကာတကခ်ာက ေတ ကေတ ကာ် ္ာ် ္ ျပနက္မညကပါဝငက ပါ မညက။ (၃ခိုာို ်ာကစ ္ပါ မညက။) ိုံေ က သစံ တကာတကခ်ာက အ သစက (၆၈)ခိုာို စမညက့ ြငက္စ ္ျပီ္ ၈၀% မညက အ ္ီယံော ကပိုရတကသစီာံ အိုပကခ််ဳပကာသ္ိုငကရ ရာတကာတကတာက္ာ စမညက့ ြငက္စ ္ျခငက္ျ သစကျပီ္ ၂၉%ာ Integrated Reporting ာူေဘ ငကာ စမညက့ ြငက္စ ္ျခငက္ျ သစက မညက။ ✓ နယကပယကတသစကခိုျခငက္သစီအ ္ ာ်တသစြ ပါဝငကာိုငကရနက သစံ တကာတကခ်ာကာ် ္၏ ြ သစမညက္ပံိုာို ေျပ ငက္္ ြ သစမညက္စ ္ မညက။ 68% 9% 9% 7% 7% 33% 16%25% 26% Corporate governance Corporate profile Reporting Sustainability management Communication PTS 2018 Structure PTS 2019 Structure
  • 16. 4 sections and 21 topics are covered 1 ာက႑ (၄)ခိုာငက့ အေအာ ငက္အရ (၂၁)ခို ပါဝငကပါ မညက။ ✓ Communication section in PTS2018 now split between Corporate Profile and Reporting. ✓ Sustainability Management now includes some items that were previously under Corporate Governance. ✓ ယခငက သစသစကတာက္ော ငကျခငက္တြငကပါဝငကေ ္ူာသ္ာက္ံေရ္ ာက႑ မညက ယခိုအေခါာကတြငက corporate profile ာငက့ အသစီရငကခံျခငက္ ္ို မညက့ေခါငက္သစမက (၂)ခို အျ သစကျပနက္မညကပါဝငကပါ မညက။ ✓ ေရရမညကတမညကတံ့ာိုငကာသ္ိုငကရ သစီာံခနကံခြျခငက္ာက႑တြငက ယခိုအခါ၌ ော ကပိုရတကသစီာံအိုပကခ််ဳပကာသာက႑တြငက ယခငကာပါဝငကခ့ေ အေအာ ငက္ အရ တသစကခ််ဳ ာိုစမညက့ ြငက္စ ္ပါ မညက။ Corporate Profile Company's presentation Ownership structure Company' strategy Corporate communication Corporate Governance Shareholders' Engagement Board of directors' structure Board of directors' responsabilities Audit committee Nominating committee Remuneration Committee/ Compensation Committee Performance review & board appointments Sustainability management Risk management Strategy Corporate policies Business ethics Whistleblowing Sustainability reporting Reporting Annual report Framework Financial & operations Non Financial
  • 17. We aim to better differentiate the companies’ results... 1 ာိုာကုီာ် ္၏ ရ္ဒကာ် ္ာို ပိုာိုော ငက္ာြနကသစြ ပိုငက္ျခ ္ာိုငကရနက ရမညကရြယကပါ မညက။ PTS 2019 differentiates two types of criteria to better assess quality and transparency of corporate disclosure. • “Disclosure criteria” help assess how systematic and consistent a company’s disclosure is. • “Performance criteria" focus on identifying companies that are transforming their business model to improve sustainability. အ္ငက့ တကာတကရ တြငက ပိုာိုစေရ ာကေသစရနက ပြငက့္ငက္ျာငက ာသာိုတိုငက္တ ေ သစံ တကာတကခ်ာကာငက့ ္ိုပကေ္ ငကာသအရမညကအေ ြ္ာိုတိုငက္တ ေ သစံ တကာတကခ်ာကာ် ္ဟူ၍ (၂)ာ််ဳ္ခြစ ္ပါ မညက။ • “ပြငက့္ငက္ျာငက ာသာိုတိုငက္တ ေ သစံ တကာတကခ်ာကာ် ္”တြငက ာိုာကုီာ် ္ာ အာ် ္ျပမညက ူ ရေသစရနက စိုတကေ ကျပ စ ္ ေ အခ်ာကအ္ာကာ် ္ မညက ာမညကာ်သစနသစကတာ်ျ သစက၍ ခိုငကာ ေ အခ်ာကအ္ာကာ် ္ျ သစကေအာ ငက္ာို အာျ တက ြ ္ာမညက ျ သစက မညက။ • “္ိုပကေ္ ငကာသအရမညကအေ ြ္ာိုတိုငက္တ ေ သစံ တကာတက ခ်ာကာ် ္” တြငက ာိုာကုီာ် ္ာ ၄ငက္တို ၏ သစီ္ပြ ္ေရ္ပံိုသစံာို ပိုာို ေရရမညကတမညကတံ့ ေသစာိုငကရနက ာမညကာ့ ို ေျပ ငက္္တို္တာက ေအ ငက ေ္ ငကရြာကေနပံိုာို တိုငက္တ ြ ္ာမညကျ သစက မညက။ PTS 2018 Structure PTS 2019 Structure Type of criteria Number Score Disclosure 74 74 Score Max 74 Type of criteria Number Score Disclosure 119 119 Performance 23 46 Score Max 165 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Corporate profile Corporate governance Sustainability management Reporting Performance criteria’s distribution
  • 18. ... and to review 251 companies 1 ာိုာကုီ (၂၅၁)ခိုာို ေ့္္ အာျ တကာမညက ျ သစက မညက။ 5 55 164 27 Breakdown by Ownership Type 5 55 123 27 3 38 Reasons for Inclusion 73 178 Share of New Companies New Previously surveyed Listed Public State-owned Private Volunteer Top tax payers Influential
  • 19. Extended timeline 1 Feb. 2019 Nov. 2018 Oct. 2018 Dec. 2018 Jan. 2019 March 2019 1st assessment made by Yever Engagement 2nd assessment made by Yever 2019 SURVEY အခ်နက တကာတကခ်ာကာ် ္ • ာိုဝငကဘ ္အေသစ ပိုငက္ - ပစာအႀာာကအာျ တကာသ အျပီ္ တကျခငက္ • ာိုဝငကဘ ္္ယက - ာိုာကုီာ် ္ာငက့ ေ္ြ္ောြ္ျခငက္ • ေ ေ ကဝါရီ္္ယက - ေန ာက္ံို္အႀာာက အာျ တကျခငက္ာငက့ ရ္ဒကာ် ္အ ္ တသစိုတေဝ္တမညက္တြာကခ်ာကျခငက္ • ၂၀၁၉ခိုာသစက အာၤနကာတိုငကာီ - ပြငက့ သစကသစ ၂၀၁၉ ရ္ဒက
  • 21. 21 2 Fostering Transparency Through Better Corporate Reporting ပိုာိုော ငက္ာြနကေ ော ကပိုရတကအသစီရငကခံျခငက္ ျ ငက့ ပြငက့္ငက္ျာငက ာသအ ္ အ ္ေပ္ျာငက့တငကျခငက္
  • 22. What makes a company a leader in sustainable development? 2 ေရရမညကတမညကတံ့ာိုငကျခငက္ဟို္ိုရ တြငက (Source: Globescan 2018 Sustainability Leaders Survey) Long-term commitment Integrated sustainability values Part of core business model / strategic approach Communication / reporting / advocacy Executive leadership has strong SD values / strong leadership 20% Ambitious targets/policies / commitment to SDGs Sustainable products/services / product lifecycle Innovation / R&D Results / walk the talk 26% 12% 26% 16% 15% 10% 17% 12% 11% 13% 11% 8% 8% 10% 9% 7% 6% 2018 2017
  • 23. How can you improve disclosure in PTS2019? Some good practice international and Myanmar examples…. 23
  • 24. 2 #Q5 (Corporate Profile: Presentation) – Does the company clearly explain their business model, and how it creates value for stakeholders?
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  • 28. 28 EBITDA stands for earnings before interest, taxes, depreciation and amortisation.
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  • 34. 2 #Q11 (Corporate Profile; strategy) – Does the company clearly explain their goals, and how they want to achieve them?
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  • 40. 2 Q13 (Corporate Profile, Company’s strategy): Does the company clearly explain to what extent it has achieved its strategic objectives for the period and what its outcomes in terms of effects on the capitals are?
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  • 44. How can you improve disclosure? Examples > Corporate Governance 2 Q42 (Corporate Governance: Board of Directors’ Responsibilities) – Does the company clearly explain how its governance structure supports its ability to create value in the short, medium and long term?
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  • 56. 2 Q65 (Sustainability Management: Risk) – Does the annual report clearly explain what the specific risks and opportunities are that affect the organization’s ability to create value over the short, medium and long term, and how the organization is dealing with them?
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  • 61. 2 Q73 Sustainability Mangement: Strategy – Does the company clearly explain how the materiality analysis is relevant to business issues?
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  • 65. 2 Q75 (Sustainability management: Strategy) – Are the sustainability targets explicitly aligned with the materiality analysis, with a high level of commitment and a reasonable timeframe?
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  • 70. Sources of further information and help Myanmar Institute of Directors • http://myanmariod.com/ • Next training course: Audit Committee Master programme 13/14 September Online guides, international standards • A selection is available on MCRB USB stick Sustainability, governance and public relations consultants 70
  • 72. Q&A and Contact Details Please contact: For MCRB, Phyu Phyu Zin transparency@myanmar- responsiblebusiness.org For Yever, Nicolas Delange transparency@yever.org ္ာက ြယက္ိုပါာ- MCRB အတြာက ျ ်ဴျ ်ဴဖငကtransparency@Myanmar- responsiblebusiness.org Yever အတြာက Nicolas Delange transparency@yever.org