Supplier Assessment
Our Supplier Assessment program is crucial to our efforts to guarantee that all of our partners share our values and contribute to our objective of making a good difference in the world. We evaluate our suppliers using a thorough set of criteria that includes environmental, social, and ethical considerations. These criteria are intended to enhance supply chain openness, accountability, and continual improvement.
Environmental Impact
We carefully assess our suppliers' environmental effects to guarantee they share our commitment to environmental preservation. We want partners who are committed to sustainable practices and environmental stewardship, from resource management and energy efficiency to waste reduction and carbon emissions.
Social Responsibility
We place a high value on employee well-being and fair treatment. We perform extensive audits to verify that our suppliers adhere to fair labor practices, prioritize worker safety, and respect human rights. We aggressively promote workplace diversity and inclusivity, providing an environment in which everyone's rights are acknowledged and protected.
Ethical Business Practices
Our supplier partnerships are built on ethical behavior. We carefully analyze potential partners to ensure that their operations adhere to the highest ethical standards. We expect our suppliers to conduct themselves with integrity, honesty, and adherence to all applicable laws and regulations.
Continuous Improvement and Collaboration
Our Supplier Assessment is a continuous path toward excellence, not a one-time event. We collaborate with our suppliers, providing direction and support to help them continuously improve their operations. We establish an environment in which suppliers feel empowered to improve their responsible supply chain initiatives via open communication and collaboration.
Transparency and Accountability
Transparency, we feel, is the key to establishing trust and accountability. We maintain clear and open contact with our partners throughout the Supplier Assessment process, conveying our expectations and requirements. We hold ourselves to the same high standards that we expect from our vendors.
Empowering Positive Change
We hope to create a good ripple effect throughout the industry by engaging with responsible suppliers. Our Supplier Assessment program not only ensures compliance, but also aims to make a positive influence and promote sustainable practices in the supply chain community.
C.P. Group remains committed to responsible supply chain management through our dedication to supplier assessment. We think that by partnering with organizations that share our goal for sustainability and ethical practices, we can collectively create a brighter, more sustainable future for the globe.
Weighting for ESG
New and existing suppliers must be evaluated on a regular basis. Charoen Pokphand Group has established particular evaluation criteria for both new and existing vendors. Product and service quality, pricing, delivery, and sustainability are important considerations for new suppliers. Weighting is assigned to each criterion to ensure that the best product and service are delivered to the Group, and hence to our customers and consumers.
Because the Group places a high value on sustainable practices and encourages our suppliers to do the same, the weighting for sustainability criteria contributes to up to 30% of the total assessment score. Simultaneously, existing vendors must undergo a yearly assessment to check their capabilities and performance against contract and Supplier Codes of Conduct standards. The weighting for sustainability criteria, like the weighting for new supplier assessment, accounts for up to 30% of the total assessment score.
Supplier Audit Results and RIsk Management Measures
Charoen Pokphand Group’s supply chain is diverse and highly challenging in terms of the diversity of industries. Therefore, establishing auditing standards is a pivotal mission that needs to be expedited in a systematic manner. For this reason, the Group has organized the CAPACITY BUILDING PROGRAM - CPG Cooperated Sustainability.
Thus far, Charoen Pokphand Group has collaborated with independent third parties to conduct supplier sustainability audits based on the Group’s Supplier Code of Conduct and related regulations.
Suppliers identified with risks or non-compliance shall be offered advice to develop consistent operational guidelines. The Group will also keep a close eye on their progress in improving and resolving identified inconsistencies in order to reduce, alleviate and eradicate all dimensions of risks.
The assessment results will be incorporated as part of the annual supplier performance evaluation. Suppliers whose assessment results fall below the criteria shall not be considered for future tasks or may be subject to termination of contract.
| Dimension | Example of Issues Identified in Sustainability Audits | |
|---|---|---|
| Risk Issues | Risk Management Measures | |
 Environmental |
Industrial waste and general waste separation | Develop, communicate and implement standards for industrial waste and general waste separation |
| Pollution control | Develop relevant pollution control plans and follow up at appropriate intervals | |
 Social |
Employment contract | Draft employment contracts that specify working conditions in writing using languages comprehensible to employees |
| Occupational safety handbook, hazard warning and communications | Create handbooks, standards, and communications in languages comprehensible to employees | |
 Corporate Governance |
Establishment of welfare committee and meetings | Establish a welfare committee and hold meetings every three months |
| Appointment of advanced technical-level safety officers | Comply with the Ministerial Regulation Regarding Arrangement of Safety Officers in the Workplace B.E. 2565 (2022) | |
Suppliers’ Gender Assessment
At C.P. Group, we believe that empowering all genders is not just a moral imperative but also a strategic advantage.
By integrating gender assessment into our supply chain management, we aim to create a positive impact on the lives of our employees, suppliers, and communities while contributing to a more inclusive and sustainable world.
Result from assessment with ESG, gender, and compliance
| Example of Potential Findings from Sustainability Assessment | |
|---|---|
| Risk Issues | Risk Management Measures |
| Environmental Dimension | |
| Environment impact assessment | Establish aspects and impacts identification process including measure determination |
| Pollution control | Set up a pollution control plan for the related aspect and monitor at appropriate intervals. |
| Sewage management according to the Ministry of Industry announcements | Notification of registration to the Ministry of Industry and license application according to the announcement of the Ministry of Industry |
| Social Dimension | |
| Employment contract | Prepare a written employment contract in a language comprehendible by employees |
| Employee health checks based on risk factors | Establish health monitoring guidelines according to risk factors and perform employee health checks |
| Registration of personnel in charge of SHE at the management level, supervisory level, etc | Appoint personnel at various levels and provide them with training prior to registration notification with the Office of Labor Protection and Welfare |
| Governance Dimension | |
| Training provision according to relevance regulations ex. firefighting, fire drills, and chemical spills | Organize an annual training plan and compile a training report summary |
| Revise legal changes associated with business operations | Appoint responsible person and prepare legal registration and review changes in various laws |
| Personal Data protection | Set up the structure and systematic process with communication with all relevant stakeholders |