Scope 1 Stationary Combustion
10.98%
GHG Emissions Management
Charoen Pokphand Group is committed to taking a leading role in addressing climate change through responsible greenhouse gas (GHG) management across all related activities.
The Group has set a target to achieve carbon neutrality by 2030 and net-zero GHG emissions by 2050. C.P. Group’s net-zero target by 2050 has been officially validated by the Science Based Targets initiative (SBTi). This commitment covers GHG emissions reductions across Scope 1, 2, and 3, including the energy, industrial, and land-use sectors (FLAG). In addition, C.P. Group has integrated GHG risk management into its strategic planning process, supports decarbonization throughout the value chain, and invests in technologies and approaches that align with the transition to a low-carbon economy.
Goals and Progress
Reduce GHG emissions (Scope 1 & 2) by 42% according to Science-base Targets
Reduce GHG emissions (Scope 1 & 2) by 42% according to Science-base Targets
| Year | Goals |
|---|---|
| 2024 | 9.65% |
| 2023 | 9.31% |
Key Performance 2024
Climate Resilience Management Approach
As the world moves toward net-zero carbon goals, Charoen Pokphand Group acknowledges the challenges posed by climate change and has set a target to become carbon neutral by 2030 and achieve net-zero greenhouse gas (GHG) emissions by 2050.
Demonstrating its serious commitment to climate action, C.P. Group’s net-zero target by 2050 has been validated by the Science Based Targets initiative (SBTi). The Group’s targets are categorized into two key timelines:
Near-term Targets
Energy & Industry:
C.P. Group is committed to reducing Scope 1 and 2 GHG emissions by 42% by 2030, compared to the 2021 baseline*. The Group also aims to reduce Scope 3 GHG emissions by 25% over the same period*.
Forestry, Land, and Agriculture (FLAG):
C.P. Group is committed to reducing Scope 1 and 3 GHG emissions in the FLAG sector by 30.3% by 2030, compared to the 2021 baseline**. The Group also pledges to eliminate deforestation associated with major land-use change commodities by December 31, 2025.
Long-term Targets
Energy & Industry:
C.P. Group targets a 90% reduction in Scope 1 and 2 GHG emissions by 2050, compared to the 2021 baseline*, and a 90% reduction in Scope 3 emissions within the same timeframe*.
Forestry, Land, and Agriculture (FLAG):
The Group is committed to reducing Scope 1 and 3 GHG emissions in the FLAG sector by 72% by 2050, compared to the 2021 baseline**.
* The targets cover both emissions and removals related to land use, including those from biomass-based energy sources.
** The targets include emissions and removals from agriculture, forestry, and land use (FLAG).
Climate Change Management Framework
Policy and Commitment on Climate Change Adaptation Management
Charoen Pokphand Group recognizes the growing urgency of addressing climate change and the intensifying impacts it poses on the environment, society, and business continuity. To respond to this complex challenge, the Group is firmly committed to implementing its Environmental Policy and Climate Change Adaptation Policy, with a continuous focus on aligning with the highest international standards.
The Group has integrated climate change adaptation strategies into all levels of business operations—from vision setting and strategic planning to day-to-day management. This approach strengthens the organization’s capacity to respond effectively and sustainably to climate-related risks and to adapt to long-term changes.
In addition to internal operations, Charoen Pokphand Group works closely with all stakeholder groups, including suppliers and business partners, to enhance climate change adaptation practices across the entire supply chain. The focus is on promoting sustainable practices, ethical sourcing, and efficient resource use. The Group is committed to building a resilient, reliable, and climate-ready supply network that can withstand future environmental risks.
C.P. Group also places strong importance on driving a Just Transition—one that considers the impact on workers, communities, and vulnerable groups during the shift to a low-carbon economy. This includes supporting opportunities for reskilling, sustainable employment, and engaging communities in the design of related policies and programs. The Group’s engagement extends to local communities and area-based stakeholders, with an emphasis on minimizing impacts on vulnerable populations and promoting community-led initiatives to strengthen long-term social resilience.
In addition, C.P. Group takes a proactive role in supporting robust climate policy development through collaboration with government agencies, international organizations, and the private sector. These efforts aim to foster an enabling policy environment for sustainable development, a fair transition, and systemic climate action.
C.P. Group also invests in climate-related solutions and technologies that support the Group’s resilience goals. These include mitigation and adaptation projects, as well as initiatives that strengthen community resilience. The Group also encourages its suppliers and partners to align with these approaches, in order to create broad, equitable, and positive impacts across the value chain.
Climate Risk and Opportunity Assessment
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.
01
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.
02
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.
03
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.
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.
Pathway to Carbon Neutral 2030 and Net Zero 2050
Internal Carbon Pricing (ICP)
Charoen Pokphand Group recognizes the critical role of the private sector in driving meaningful reductions in greenhouse gas emissions. The Group has adopted Internal Carbon Pricing (ICP) as a strategic tool to integrate environmental responsibility into business decision-making.
Through the ICP mechanism, the Group assigns a financial value to carbon emissions, effectively internalizing the environmental costs of carbon into operational and investment decisions. This approach encourages all business units to evaluate the long-term carbon impacts of their activities, from product design and energy sourcing to large-scale investments, considering both environmental and financial performance.
By implementing ICP, the Group creates incentives to incorporate climate-related issues into decision-making and risk assessment processes. It strengthens sustainability governance and promotes investment in low-carbon projects across the organization. ICP serves as a key approach for the Group and its subsidiaries to identify and seize low-carbon business opportunities while driving energy efficiency. The internal carbon price is set at an appropriate level to guide project evaluation and investment decisions, providing a practical incentive for emission reductions and supporting the Group’s long-term climate goals.
In addition, the ICP mechanism plays a role in shaping strategy and financial planning by enabling the Group to conduct effective cost-benefit analysis for climate-related projects and to allocate budgets for carbon offsetting. This strategic approach ensures the Group is well-positioned to respond to evolving regulations and manage emissions across the value chain efficiently. Ultimately, ICP is a powerful tool that helps the Group define and achieve its climate policies and targets while stress-testing investments against future carbon costs, aligning business direction with a resilient, low-carbon future.
Key Performance 2024
GHG Emissions Scope 1, 2 and 3
Greenhouse Gas Reduction
Trend in Scope 1 and 2 GHG Emissions per Year
GHG Emissions (Scope 1+2)
By Energy Source
Scope 1 Mobile Combustion
2.71%
Scope 1 Fugitive Emissions and Others
6.71%
Scope 2 Electricity
79.60%
By Business Group
5.82
million CO2
