Climate Resilience
Goal and Performance
Charoen Pokphand Group aims to enhance our environmental sustainability practices, invest in renewable energy projects, and implement innovative strategies to reduce our carbon footprint. Additionally, we are committed to fostering climate-resilient agricultural practices across our supply chains to mitigate the impact of climate change on our operations and promote sustainable agricultural practices.
Reduce GHG emissions (Scope 1 and 2) from operations from 4.2% target according to Science-based Target
Supporting the SDGs
Charoen Pokphand Group's commitment to reducing GHG emissions, and promotion of climate-resilient agricultural practices support the achievement of two Sustainable Development Goals:
More Details on Sustainable Development Goals Report 2022
Stakeholders Directly Impacted
haroen Pokphand Group performs stakeholder assessment and prioritization process on an annual basis to evaluate impacts we have on them and how can they influence our strategies and actions over time. In 2022, the evaluation results showed that our commitment to reducing our environmental footprints creates impacts on five stakeholder groups.
More Details on Stakeholder Engagement Report 2022
Our Impacts by the Numbers
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Charoen Pokphand Group Climate Related Risk Management Report
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TCFD Report 2021
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Climate Resilience Policy
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Air Quality Management Policy
Climate Resilience Management Approach
With the global attention set on the trend to become a Zero Carbon Organization, Charoen Pokphand Group considers this a great challenge for the Group. Therefore, the Group has defined the Carbon Neutral Target and certified with Science-based Target. This target serves as the guideline for managing climate change, which corresponds to the Paris Agreement’s ultimate goal of limiting global warming to no more than 1.5oc.
Charoen Pokphand Group focuses on climate change management and attaches importance to promoting the use of renewable energy, upgrading machinery to render maximum efficiency in all activities, developing modern, fast and non-polluting transportation systems, sourcing sustainable and low-carbon raw materials that do not destroy forests, and planting trees, increasing green space and investing in Carbon Sequestration, which are the key driving factors in achieving our established goals.
Climate Resilience Policy Commitment
At Charoen Pokphand Group, we recognize the urgent need to address climate change and its impacts on the environment, society, and our business. As a result, we are dedicated to carrying out our policy commitments in a manner that upholds the highest standards of climate resilience. We commit to incorporating climate resilience factors into every facet of our business operations and decision-making procedures. We will prioritize climate risk assessments and incorporate climate-related data into every aspect of our organization, from strategic planning to day-to-day operations, to make sure that it is robust and adaptable. The Group is also committed to lowering greenhouse gas emissions and establishing challenging goals that are in line with the most recent research and international climate agreements. The Group prioritizes resource efficiency and conservation initiatives throughout our value chain to meet the defined targets. By optimizing energy use, water consumption, and waste management, we aim to reduce our environmental impact while increasing our resilience to resource scarcity and climate-related disruptions.
Additionally, the Group works collaboratively with different groups of stakeholders for instance, we work with suppliers and business partners to enhance climate resilience throughout the supply chain. We are working to provide a more reliable and resilient supply network by promoting sustainable practices, ethical sourcing, and resource management together. The Group also interacts directly with regional stakeholders and communities. We will address the unique effects of the climate on vulnerable populations and promote social resilience and well-being through conversation, cooperation, and community-driven projects. The Group also pushes for strong climate policies that encourage sustainable development and climate resilience while actively interacting with policymakers. We hope to contribute to the development of an environment that is supportive of climate action by working with governments and industry stakeholders.
In addition to the engagement with different stakeholder groups, the Group invests in climate solutions and technologies that align with our climate resilience targets. The Group supports and finances projects that contribute to climate mitigation, adaptation, and community resilience while encouraging others, especially our suppliers and business partners, to do the same.
Climate resilience is an ongoing journey. We commit to regularly reviewing and improving our climate resilience-related policies, strategies, and practices based on emerging science, stakeholder feedback, and changing climate dynamics.
Environmental Management Systems Certification
At C.P. Group, we recognize the significance of obtaining Environmental Management Systems (EMS) certification as evidence of our commitment to environmental stewardship and sustainability. EMS accreditation proves our commitment to efficiently managing environmental consequences, builds our reputation with stakeholders, and ensures compliance with laws and regulations around the world.
In markets where environmental responsibility is valued, it also allows us to reduce risks, uncover cost-saving opportunities, and improve environmental performance, giving us a competitive advantage. Additionally, EMS accreditation promotes a culture of environmental awareness among our staff members, generating pride and engagement in the knowledge that they work for an organization that places a high priority on sustainability and actively promotes positive change.
| Certification / Audit / Verification | Coverage (%) |
|---|---|
| EMS is verified through international standards | 45.47 |
| Third-party certification /audit/verification by specialized companies | 19 |
| Internal certification /audit/verification by the company's own specialists from headquarters | 32.75 |
| Total | 97.22 |
Climate Risk and Opportunity Assessment
Charoen Pokphand Group recognizes the critical importance of understanding climate-related risks and opportunities in our business operations. As part of our commitment to climate resilience, we have undertaken a comprehensive Climate Risk and Opportunity Assessment, including the adoption of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This proactive approach allows us to identify, assess, and address climate-related risks and opportunities, ensuring that we navigate the challenges of climate change while embracing the potential for sustainable growth and innovation.
Climate Risk Assessment
We systematically assess the physical, transitional, and reputational hazards related to climate change through our Climate Risk and Opportunity Assessment. Analyzing potential effects on our production procedures, distribution systems, and market demand is part of this approach. Understanding these risks can help us create resilience plans, lessen vulnerabilities, and safeguard our company against climatic disruptions.
Opportunity Assessment
Our climate-focused methodology also finds possibilities that result from the shift to a low-carbon and sustainable economy, in addition to risk assessment. We continually look for ways to match our business practices to changing climatic patterns, technology developments, and consumer expectations. To match changing consumer expectations, this entails making investments in renewable energy sources, putting in place energy-saving technology, and creating sustainable product offerings.
Integration into Decision-making
Assessments of climate risk and opportunity are not stand-alone activities; rather, they are an essential component of our decision-making processes. We make sure that our company is adaptable, competitive, and sustainable in an environment with changing climatic conditions by including climate considerations in our strategic planning and investment decisions.
Pathway to Carbon Neutral 2030 and Net Zero 2050
Charoen Pokphand Group is committed to taking bold steps to combat climate change and reduce our environmental impact. We have set two significant milestones - achieving Carbon Neutrality by 2030 and reaching Net Zero emissions by 2050. These ambitious targets drive our dedication to sustainability and reflect our vision for a cleaner, greener, and more resilient future.
Carbon Neutral 2030
Within seven years, we want to drastically reduce our greenhouse gas emissions in order to achieve carbon neutrality. We are committed to balancing our emissions with equal offsetting efforts through innovation, energy efficiency initiatives, and ethical sourcing in order to achieve a net-zero carbon footprint by 2030.
Net Zero 2050
Our goal of reaching Net Zero by 2050 after 2030 constitutes a long-term approach that encompasses our whole value chain. We strive to completely eliminate or offset all of our carbon emissions through cooperation with partners, suppliers, and stakeholders, ensuring a sustainable and environmentally responsible approach to company operations.
GHG Emissions Management, Energy Management, Renewable Energy Management and Air Pollution Management
GHG Emissions Management
Our dedication to environmental responsibility and sustainability at Charoen Pokphand Group motivates us to consistently track, measure, and cut our greenhouse gas emissions. In order to be a model for greenhouse gas management within our industry, we are committed to openly disclosing our progress and striving to raise the standard. The Group thinks that efficient greenhouse gas management is crucial for the health of our planet and the communities we work with as well as for our business.
GHG Emissions Management Progress
2022 Performance
Total Greenhouse Gas Emissions
Greenhouse Gas Reduction
Greenhouse Gas Emissions Intensity
GHG Emissions (Scope 1+2)
By Type
By Business Group
GHG Emissions Scope 3
Energy Management
Energy conservation and sustainability are given top priority across the Charoen Pokphand Group's businesses. Our dedication to constant improvement in energy management enables us to increase both our operational effectiveness and financial performance while also reducing our environmental impact. The C.P. Group continues to be unwavering in its objective to be a leader in responsible energy practices and to positively contribute to the global transition to a low-carbon future. We see energy management as a critical pillar of our sustainability efforts.
Energy Management Progress
2022 Performance
Total Energy Consumption
Proportion of Renewable Energy Use
Energy Use Intensity per Unit of Revenue
Type of Energy and Activity
By Business Unit
Renewable Energy Management
We have embraced renewable energy sources widely as part of Charoen Pokphand Group's dedication to sustainability and minimizing our carbon footprint. We have greatly increased our use of clean energy in our operations through strategic investments in solar and other renewable energy projects. This commitment to renewable energy not only aids in reducing climate change, but it also promotes our organization's energy independence and resilience. We are dedicated to having a positive environmental impact and continuing to set the bar for ethical corporate conduct in our sector as we grow our portfolio of renewable energy sources.
Renewable Energy Management Progress
2022 Performance
Proportion of Renewable Enaergy
Energy Reduction
Cost Savings
Renewable Energy Consumption
Data on Renewable Energy Consumption by Project Category
Greenhouse Gas Reduction
From Renewable Energy Use
From Energy Efficiency Enhancement
Summary of Environmental Investments
(million THB)
Summary Energy Saving
(million GJ)
Air Pollution Management
Charoen Pokphand Group has put strong measures in place to reduce our emissions and improve the quality of the air because we recognize the serious effects of air pollution on the environment and public health. We have achieved the lowest possible levels of air pollutant emissions by implementing cutting-edge emission control systems, strict operational guidelines, and ongoing monitoring. Our whole supply chain is covered by our comprehensive strategy for managing air pollution, ensuring that all of our partners and suppliers follow high environmental requirements.
Air Pollution Management Progress
2022 Performance
VOC = 130.87 ton
Environmental Investment
Charoen Pokphand Group and our affiliates have always placed importance on all aspects of environmental management, including air pollution, water, waste, etc. This has been carried out through environmental investments and environmental management systems that meet international standards and cover all business groups and all countries where the Group operates. The Group also instills in employees the importance of environmental conservation, energy use reduction, efficient use of resources, or reduction of plastic use, etc.
In terms of environmental management, Charoen Pokphand Group has regularly audited the use of resources and energies including the management of waste generated from our business operations using systems and equipment that meet international standards. The Group has made investments in environmental management through a variety of projects, including the development of alternative energy, e.g., investing in solar energy to reduce the use of electricity generated from conventional energy or the use of geothermal heat; investing in renewable energy, e.g., replacing fossil fuels with biofuels or solar cells; investing in the construction of energy-saving buildings, etc.
Summary of Environmental Investments
(million THB)
Environmental Returns on Investment
(Unit : million THB)
| Detail | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Investment Cost | 2,511 | 1,086 | 1,464 | 4,192 | 4,822 |
| Operational Cost | 310 | 204 | 220 | 474 | 530 |
| Cost-savings | 854 | 486 | 590 | 1,144 | 1,545 |
| Energy Reduction (GJ) | 663,622 | 448,321 | 551,189 | 726,123 | 898,047 |
Environment Investment Initiatives and Projects
CPRAM Advancing towards Net Zero with Green Factories
With a commitment to the environment, CPRAM installed Solar Rooftops in seven factories nationwide, equivalent to a total area of 34,315 square meters. The project’s investment value is worth 200 million THB and has an electricity generation capacity from solar power of 6,321-megawatt hours per year. This has contributed to reducing the factories’ electricity costs by approximately 9 million THB per year and greenhouse gas emissions by over 2,813 tons of CO2 equivalent per year. CPRAM Bor-Ngern Factory is the most modern factory out of the seven establishments installed with the Solar Rooftops. It uses material technology that can reduce heat conduction into the building, the natural lighting concept, shading systems, air vents to relieve heat from the building’s interior, and an energy-saving air conditioning system.
Greenfarm: Innovative Green Animal Farming Model
Under this outstanding green business model, all 98 pig farms owned by Charoen Pokphand Foods Public Company Limited (CPF) have been developed into green farm models that “are friendly to the community and the environment”. The model has also been shared to farmers under the Contract Farming Scheme. Adhering to the Greenfarm Standards, CPF focuses on farm waste management using a biogas system and the planting of perennial plants. The Company has also reduced its energy consumption in order to render maximum benefit based on Circular Economy.
Climate Change Adaptation and Mitigation
Charoen Pokphand Group recognizes the need to take part in the shared responsibility to solve the problem of climate change in accordance with the Group’s Sustainability Goals and the Paris Agreement, which targets to control the average global temperature rise to well below 2 degrees Celsius while further attempting to control it to not exceed 1.5 degrees Celsius. Therefore, the Group has defined the goal and policy to become a carbon neutral organization by 2030. We have also adapted and mitigated climate change impact through various projects and activities which can be categorized into mitigation actions and adaptation actions.
Product Stewardship
Our Product Stewardship Policy at Charoen Pokphand Group is a prime example of our unwavering dedication to sustainability and ethical business conduct. We are responsible for every stage of a product's lifespan, from design to end-of-life management, and we make sure that social and environmental factors are taken into account at each stage. Our sustainable product design prioritizes producing items that are safe for the environment and uphold the highest standards of quality. In order to ensure ethical standards and environmental sustainability, we collaborate closely with our suppliers to ensure responsible sourcing procedures. To lessen our environmental effects and cut greenhouse gas emissions, we make investments in energy-efficient technologies for our production processes.
We place a high priority on product safety and quality, and we abide by all applicable laws and professional standards to make sure our products meet or surpass safety standards. With clear information on environmental claims, recycling options, and correct disposal instructions, transparent labeling and communication help consumers make informed decisions. In an effort to create goods that are easily recyclable, we actively try to limit waste generation during manufacturing and promote recycling throughout the product lifespan. We regularly review and update our product stewardship procedures based on customer input and newly developed best practices, quickly responding to environmental concerns and customer demands as part of our commitment to continuous improvement.
For more information regarding environmental criteria used in the products and services development please see the Product Stewardship Policy
Hazardous Chemicals and Substances Management
Charoen Pokphand Group recognizes the importance of appropriate management of hazardous chemicals and substances, and chemicals used in our products and services, and in the company’s operations in accordance with applicable standards and our CPG’s hazardous chemicals and substances management policy to reduce and eliminate adverse impact to human health and environment.
Target 2022: C.P. Group is committed to reduce or phase out the use of hazardous chemicals and substances, and chemicals used in products and services, in the company's operations in accordance with of controls and national and international laws, regulations, and standards related to the control of chemical use e.g. List of Hazardous Substances according to the Montreal Protocol on Substances that Deplete the Ozone Layer, Notification of Ministry of Industry, Thailand: List of Hazardous Substances (No.7) B.E. 2565 (2022), Registration Evaluation Authorization and Restriction of Chemicals (REACH) and the Restriction of Hazardous Substances (RoHS), etc. in order to regulate the use of chemicals throughout the life cycle of product.
In 2022, there was no nonconformity case related to the use of hazardous chemicals and substances in our products and services.
Product Life Cycle Assessment
Charoen Pokphand Group takes a comprehensive approach to product development through Life Cycle Assessment (LCA). LCA is an essential tool that enables us to evaluate the environmental impacts of our products from cradle to grave. By conducting rigorous LCAs, we gain valuable insights into the resources used, emissions generated, and waste produced throughout a product's entire life cycle. This knowledge empowers us to make informed decisions, optimize our processes, and develop products that have a minimal ecological footprint.
Product Life Cycle Assessment Progress
Product Life Cycle Assessment Initiatives and Projects
C.P. Intertrade Company Limited has carried out the life cycle assessment of packaged white rice from paddy fields in Kamphaeng Phet province to analyze environmental impacts of the product throughout its life cycle. This process assesses various aspects of environmental impacts, such as global warming, acidification, eutrophication, water use by implementing the GaBi 5 environmental assessment program. The company has also worked to enhance its personnel with knowledge and understanding of life cycle assessment techniques for the development of environmentally friendly products. This is to increase the capacity of the production sector and preserve the environment for sustainable development.
| Life Cycle Assessment of Rice per 1 Kilogram fo the product | |||
|---|---|---|---|
| Impact Assessment | Amount | unit | Method |
| Global Warming | 3.08 | kg co2-eq | CML2001 - Nov, 09, Global Warming Potential (GWP 100 years) |
| Acidification | 0.01 | kg co2-eq | CML2001 - Nov, 09, Acidification (AP) |
| Eutrophication | 0.00 | kg Phosphate-eq | CML2001 - Nov, 09, Eutrophication (EP) |
| Abiotic Depletion (ADP elements) | 0.00 | kg Sb-eq | CML2001 - Nov, 09, Abiotic Depletion (ADP elements) |
| Ozone Depletion (SDP) | 0.00 | kg R11-eq | CML2001 - Nov, 09, Ozone Depletion Potential (SDP) |
| Primary energy from resources | 110.68 | MU | Primary energy from resources (gross caL value) |
| Energy consumption | 6.67 | MU | From unit process |
Water use : total
|
3.25 2.80 0.45 |
M3 M3 M3 |
Total from system process Direct water user from Unit Process , Indirect water use come from differences Of total water use and direct water use |
End of Life Cycle Responsibility
At Charoen Pokphand Group, we view our duty for the end-of-life cycle as a crucial component of our dedication to environmental stewardship. We are committed to managing the complete lifespan of our products because we think that ethical product management goes beyond the point of sale. We place a high priority on recycling, reusing, and ecologically friendly disposal techniques from design to disposal. We make sure that our products have a minimal environmental impact by aggressively promoting the ideas of the circular economy and motivating customers to engage in ethical end-of-life practices.
End-of-Life Cycle Responsibility Initiatives and Projects
CPPC Company Limited, under Charoen Pokphand Group, is the principal manufacturer of product packaging. The Company uses 100% recycled paper and plastics to manufacture a variety of packaging for the use of other affiliates.
- Plastic sacks
- Food packaging
- PVC products
- Paper core
