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RESPONSIBLE SUPPLY CHAIN
TOP
OUR IMPACT
BY THE NUMBERS
100
%
of critical tier 1 suppliers received communications on Supplier Code of Conduct and sustainability issues
100
%
of critical tier 1 suppliers have been assessed on sustainability
100
%
of high-risk suppliers have prepared and submitted corrective action plans
OUR WAY FORWORD
2030
Sustainability
Goals
Strengthen the capabilities of our suppliers to create operational excellence, minimise negative impacts of our supply chain and shift the paradigm toward sustainability
100%
Of high-risk raw materials are
traceable and high-risk
suppliers audited
MANAGEMENT
APPROACH
With regards to Charoen Pokphand Group (C.P. Group) diversified portfolio, there are extensive number of suppliers and business partners scattered across the regions. The Group believes that our suppliers, service providers, and distributors represent the company. Therefore, it is significant that our suppliers comply with the requirements, laws and regulation. To support and ensure the responsible supply chain, C.P. Group has developed
Supplier Code of Conduct
and supply chain management system to monitor and enhance the operation process. The management system covers supplier’s selection process, registration, risk assessment, and operation control. The system has been implemented across the entire supply chain to foster responsible supply chain management, reduce potential risks, and creates opportunities for sustainable business operations.
ESG Integration in Supply Chain Management Strategy
Risk Management Measures
ESG Objective
Linkage to SCM Strategies
KPI
1
2
3
4
5
Promote traceability of high-risk raw materials
100% of high-risk raw materials are traceable by 2021
Conduct audit with high-risk suppliers
100% of high-risk suppliers received audits, including ESG aspects by 2021
Promote sustainable water management for suppliers
100% of critical tier 1 suppliers are operating in compliance with water-related laws and regulation, and conduct water risk assessment by 2021
Charoen Pokphand Group has categorized suppliers based on priority and risk level, such as critical suppliers. Other types of suppliers identified with sustainability risks assessment through regular onsite and their performances are monitored continuously.
Find out more about Supplier Sustainability Assessment Results
Supplier Assessment Process
AWARENESS AND RISK EXPOSURE
In order to strengthen the entire supply chain and set appopriate supplier management approaches, Charoen Pokphand Group has categorized suppliers based on their priority and risk level, such as critical suppliers. Other types of suppliers identified with sustainability risks are assessed by on site audits on a regular basis. At the same time, the Group also monitors suppliers' performance continuously.
SUPPLIER SUSTAINABILITY ASSESSMENT
Number of critical tier 1 suppliers who completed the Sustainability Self-Assessment during the past 3 years.
Charoen Pokphand Group has incorporated social and environmental issues into the Supplier Selection Process, requiring suppliers to conduct Supplier Self-Assessments and undergo assessments by companies within the Group or by reputable third-party agencies. Meanwhile, social and environmental requirements have been included into contracts. Additionally, the Group has instructed all suppliers to complete a sustainability assessment at least once every 3 years. We target to reach up to 50% of the total suppliers, including critical non-tier 1 suppliers, by 2022.
RISK MANAGEMENT MEASURES
Charoen Pokphand Group manages supplier risks across the entire supply chain in order to identify suppliers with high sustainability risks, covering suppliers of raw materials, packaging, and services. Supplier risk management is no t only limited to tier 1 suppliers with direct purchasing relationships with the Group, but also includes non-tier 1 suppliers. The assessment is conducted from the process of planning through to follow-ups on corrective actions and performance reviews. This is to ensure that suppliers have continuous and effective sustainability risk management.
EXPLORE OUR STORIES
RESPONSIBLE SUPPLY CHAIN MOVEMENTs
ENHANCING
SUPPLIERS’ CAPABILITIES
Charoen Pokphand Group aims to promote modern agriculture in order to elevate suppliers’ capabilities and hence, their quality of life.
Find out more
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