Human Rights and Labor Practices

Charoen Pokphand Group has several human rights-related policies and guidelines in place for all business units and suppliers to comply with. The Group has dedicated working teams to constantly monitor changes or requirements from laws, rules, and regulations, and then the Group’s policies and guidelines will be changed accordingly. The Sustainability Committee has the role and responsibility to screen the appropriateness and suitability of the changes before proposing them to the Executive Board level for final endorsement and publication.

To effectively and sustainably executed human rights due diligence processes, the following actions must be implemented by the business units:

• Leadership Role Model: All management must become role models for employees.
• Assigning Responsibility: Responsible personnel must be appointed to manage human rights topics.
• Training Key Personnel: Provision of training must be given to responsible personnel to ensure alignment and strict compliance.
• Integrating into Recruitment Process: Integration of human rights topics into employee recruitment and appraisal review processes.
• Capacity Development: Business Units must have systems and processes to build awareness regarding human rights for all levels of employees and management.
• Incentive Development: Special incentives should be considered provided to all levels of employees to promote compliance and prevention of human rights risks throughout the organization.

Charoen Pokphand Group conducts human rights risk assessment across the Group’s entire value chain, covering the establishments of the Company, suppliers, and joint ventures. In doing so, the Group considers the impacts on rights holders in the value chain, reviews the risk assessment every three years, and determines preventive and mitigation measures against potential human rights impacts.

C.P. Group conducts comprehensive human rights risk assessments across all business activities, including own operations, contractors and Tier 1 suppliers, and joint ventures. Over the past three years, 100% of activities in each category have been assessed. Where risks were identified, 100% have been addressed through mitigation actions, ensuring alignment with our commitment to respecting human rights and promoting responsible business practices across our value chain.

Percentage of Activities Assessed for Human Rights Issues

In 2024, Charoen Pokphand Group reviewed human rights issues concerning the Group by taking into consideration national, industrial, and international contexts, as well as suggestions from human rights experts.

Once the human rights risks have been identified, business units or suppliers that have operations located in high human rights risks or having business activities with or can lead to human rights risks must establish and implement corrective actions or prevention measures. The plans must be integrated into corporate human rights management to reduce or eliminate human rights risk across the supply chain.

It is necessary to monitor the effectiveness of corrective action measures, mitigation mechanisms, and other related actions. Business Units must establish suitable Key Performance Indicators for both qualitative and quantitative dimensions.

Human rights due diligence process and results must be communicated clearly and transparently to the public. A variety of communication channels must be available for different groups of stakeholders. The contents that must be communicated include strategy, goals and targets, implementation or preventive plans, results, challenges, and next steps.

The main objectives of the stakeholder engagement process are to understand stakeholders’ perceptions towards human rights management at the Business Units level and obtain additional human rights violation issues that might not have been included in the HRIA process. Moreover, we also engage with them to assess the effectiveness of human rights mitigation or prevention plans.

Remediation is typically performed after adverse effects have occurred. A systematic remediation process inside the operation should be considered by business units. The following major steps should be included in the process: Consideration of impact, including financial and non-financial impact; level of impact; requirements of person receiving impact, local context, relevant legislation, and more. To build a remedy that is suitable, reasonable, and not against the law, each step must be thoroughly examined fair, and transparent. A committee is required to oversee each step, and expert viewpoints must be incorporated into the decision-making process. When it comes to land rights and indigenous rights, the business unit must be careful not to rely solely on comments released by laws. Additional research should be conducted covering social rights, cultural activities, citizenship rights, and more.

The grievance system is an important step in gathering information for the remediation and prevention of human rights violations. A business unit must have a systematic grievance mechanism that is aligned with the international framework, including

1. accessibility - which must be easily accessible and user friendly;
2. compatibility;
3. transparency and verifiability by an external third party; and
4. impartiality of the committee and hearings from all sectors. The business units must include third parties in discussions about land rights and indigenous rights.