Sustainability Report
Charoen Pokphand Group
2019
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SUSTAINABILITY MANAGEMENT

LIVING RIGHT

LIVING WELL

LIVING TOGETHER
 
C.P. Group has implemented a sustainability strategy that drives the Group’s operations in pursuit of its 2020 targets and vision, “Providing food for both body and mind that creates shared values and brings health and well-being for all.” In addition, C.P. Group has established the Sustainability, Good Governance and Corporate Communication Operating Committee (SGC Operating Committee), which takes responsibility for outlining management approaches, monitoring, verifying, and ensuring confidence that C.P. Group’s overall performance is efficient and in line with its targets and vision. Moreover, C.P. Group has carried out an assessment of its material sustainability issues and supported all 17 United Nations Sustainable Development Goals (SDGs).
Sustainability
Strategy
Sustainability
Governance

Executive
Commitment
Materiality
Assessment
Key
Performance
Case Study
Sustainability
Report

Sustainability Strategy
C.P. Group has developed the ‘3Hs’ Framework, covering three dimensions: Heart – Living Right, Health – Living Well, and Home – Living Together. This Framework serves as the driver behind C.P. Group’s sustainability strategy, and ensures that it can efficiently reach its intended targets. The 3Hs Framework supports the various principles and operational systems that C.P. Group has either established or adopted, including the ‘Three-Benefit Principle,’ the C.P. Excellence Management Approach, the Sufficiency Economy Philosophy, the Ten Principles of the UN Global Compact, the 17 UN Sustainable Development Goals, the UN Guiding Principles on Business and Human Rights as well as all laws in each country where the Group operates.
Three-Benefit Principle
Sufficiency
Economy Philosophy
C.P. Excellence
Management Approach
The 10 UNGC Principles
17 UN SDGs & UNGP
Regulations and Standards
  • Corporate Governance
  • Human Rights and Labor Practices
  • Leadership and Human Capital Development
  • Education

  • Social Impact
  • Health and Well-being
  • Stakeholder Engagement
  • Innovation

  • Climate Change Management
  • Water Stewardship
  • Ecosystem and Biodiversity Protection
  • Responsible Supply Chain
C.P. Group further reviews, improves, and updates its sustainability strategy, including the strategy’s components, on a regular basis. As a result, key companies of C.P. Group have been recognized by various international sustainability rankings such as the Dow Jones Sustainability Indices (DJSI), FTSE4Good, and Morgan Stanley Capital International (MSCI). At C.P. Group, we promise to continuously enhance our sustainability performance to create benefits for the country, positive livelihood for the people, and stability for the company. The Group plans to develop a strategy and long-term sustainability targets in 2020.

Sustainability Governance
C.P. Group remains committed to sustainability governance within the organization as well as the ‘Three-Benefit Principle.’ Such governance will transform us into a world-leading company, operating on the basis of transparency and fairness to all. We uphold our social responsibility through a diverse and encompassing range of projects and activities that respond to the needs of all stakeholders equally. At the same time, we strive to maintain environmental well-being while responding to the demands of growing population and industries, through environmentally-friendly innovation and technological research. Furthermore, we have established the SGC Operating Committee, which is composed of 14 senior executives from the Group and its business groups. The Committee is responsible for driving C.P. Group’s strategies, issuing C.P. Group’s sustainability policies and measures, engaging with and disclosing information to stakeholders, and managing risks. The SGC Operating Committee reports on sustainability progress and performance bimonthly at the ‘C.P. Group’s Vision to Action’ seminar, presenting to over 400 top executives from all of C.P. Group’s Thai and overseas business groups.

Executive Commitment
Executive commitment to pursue sustainability in all invested countries.
Mr. Dhanin Chearavanont
Senior Chairman
C.P. Group
Mr. Soopakij Chearavanont
Chairman
Charoen Pokphand Group Co., Ltd.
Mr. Suphachai Chearavanont
Chief Executive Officer
Charoen Pokphand Group Co., Ltd.
Dr. Ajva Taulananda
Senior Vice Chairman
Charoen Pokphand Group Co., Ltd.
Mr. Prasert Poongkumarn
President and Chief
Executive Officer, CPPC PCL
Mr. Narong Chearavanont
Senior Vice Chairman
Charoen Pokphand Group Co., Ltd.
Mr. Manas Chiaravanond
Chief Executive Officer
Chia Tai Co., Ltd.
Mrs. Suchada Ithijarukul
Chief Executive Officer
Siam Makro PCL
Mr. Sukhawat Dansermsuk
Vice Chairman of the Executive Committee
Charoen Pokphand Foods PCL
Mr. Sooksunt Jiumjaiswanglerg
Vice Chairman of the Executive Committee
Charoen Pokphand Foods PCL
Mr. Sumeth Laomoraphorn
Chief Executive Officer
CP Intertrade Co., Ltd.
Mr. Sumeth Pinyosnit
Chief Executive Officer
Charoen Pokphand Produce Co., Ltd.
Mr. Yang Xiaoping
Group Senior Vice Chairman
CPG Overseas CEO
Mr. Xie Yi
Senior Vice President
Agro-Industrial and Food Business Group,China
Mr. Michael Ross
Executive Vice Chairman
Chai Tai Di Jing (Shanghai) Investment Management Limited
or Shanghai Kinghill Limited
Mr. Li Wen Hai
Chief Executive Officer
C.P. Lotus Corporation
Miss Tse, Teresa Y.Y.
Chairlady
Sino Biopharmaceutical Co., Ltd.
C.P. Group considers it our mission to build opportunity and sustainability in Thailand and the world.

The Group recognizes that works to realize sustainability goals require time, hard work, commitment, determination, and consistent actions. The Group’s vision for sustainable development has been cascaded and crystalized for 99 years.

This vision will be preserved and maintaining, make possible C.P. Group’s long-term, strong and secure growths – alongside Thai society and the world for years to come.

Mr. Dhanin Chearavanont
Senior Chairman
Charoen Pokphand Group Co., Ltd.
Guided by our core values, we pledge to achieve our purpose of enhancing the quality of life, health and well-being of the people, today and for a better and sustainable future. Alongside our global strategic alliances and stakeholders, we are determined to strengthen our sustainability foundation and address unfolding global challenges in order to create an inclusive society and a world living in happiness.

Mr. Soopakij Chearavanont
Chairman
Charoen Pokphand Group Co., Ltd.
For nearly a century, Charoen Pokphand Group (the Group) has grown steadily alongside the public.

The Group has been a driving force for sustainable development in all community of operations, enabled by the Group’s commitment to 3-Benefit Principles, originated from the concept of ‘selflessness.’ This was substantiated by the Group’s vision “We are committed producing food for people, substance for thinking, accessibility to values, for everyone’s greater health and well-being.”

The Group is determined to continuously develop in tandem with stakeholder engagement, thusly reassured that the Group’s objective shall be effectively responsive to stakeholders’ demands. Concurrently, the Group prioritizing contribution to the United Nations’ 17 Sustainable Development Goals (SDGs).

Mr.Suphachai Chearavanont
Chief Executive Officer
Charoen Pokphand Group Co., Ltd.
Our vision is to become an organization that fosters innovation, creating economic, social and environmental benefits for the entire world. We encourage our employees to embody this way of thinking and to appreciate the importance of innovation in everything we do. Innovation is not just about scientific discoveries, it is an attitude that is integrated in every aspect of our business. Most importantly, innovation does not flourish in a vacuum, but is a product of collaboration and cooperation.

Dr. Ajva Taulananda
Senior Vice Chairman
Charoen Pokphand Group Co., Ltd.
The Packaging Business Group is committed to operating our business with sustainability,transparency and responsibility to our stakeholders. We focus on product research and evelopment, and environmental conservation in line with the Group’s sustainability practices.

Mr. Prasert Poongkumarn
President and Chief Executive Officer
CPPC PCL
One of the commitments of the Group is to promote a good quality of life for people and sustainability of global societies and the environment. In addition to sustainable food products, we are committed to promoting sustainability to communities through knowledge sharing and supporting career development using different tools. We also support communities to be able to live in harmony with nature through water conservation and forest protection, which is a part of the sustainability that we would like to pass on to the future generations.

Mr. Narong Chearavanont
Senior Vice Chairman
Charoen Pokphand Group Co., Ltd.
We care about every customer’s demand, from the basic to advanced needs. Therefore, Chia Tai has been producing quality and safe products in the most sustainable way, while at the same time uplifting the agricultural industry in every operating area.

Mr. Manas Chiaravanond
Chief Executive Officer
Chia Tai Co., Ltd.
Driving the Company toward sustainability is an important element which is embedded as part of our business operations in every country where we operate.

We are determined to pass our knowledge and build the capacity of our employees, suppliers, farmers, and entrepreneurial customers, in order to reach the highest benefit for all stakeholders, that results in a strong and sustainable growth of society and the community as a whole.

Mrs. Suchada Ithijarukul
Chief Executive Officer
Siam Makro PCL
We believe that growth that is founded on sustainable development means the enhancement of competitiveness in the long term, which will realize the Company’s vision as “Kitchen of the World.” Despite the challenges in managing sustainability in each ountry, the Company remains committed and has put in a great deal of effort to promote sustainability throughout the organization to ensure the same directions and standards.

Mr. Sukhawat Dansermsuk
Vice Chairman of the Executive Committee
Charoen Pokphand Foods PCL
To drive sustainability in every country that we have invested in, policies and strategic directions need to be communicated and cascaded down to executives. In addition, we have country representatives in place in each country to analyze the set target, push forward management, report the performance, and encourage knowledge sharing, to ensure coherent, strong and continuous drive toward sustainability.

Mr. Sooksunt Jiumjaiswanglerg
Vice Chairman of the Executive Committee
Charoen Pokphand Foods PCL
Conducting business is similar to helping societies, creating better societies and environment. Under the Group’s “Three-Benefit Principle,” which states that the country must benefit, the people must benefit, and the Group should also benefit, we can create a common sustainable growth for all.

Mr. Sumeth Laomoraphorn
Chief Executive Officer
CP Intertrade Co., Ltd.
C.P. Group’s businesses focus on food production, of which maize is the main raw material that can be traced back to its responsible sources. With our approach, stakeholders and the surrounding environment are ensured that they are taken care of. Moreover, we can say that our product traceability goes further than product sources to both chemical and physical genetic sequences.

Mr. Sumeth Pinyosnit
Chief Executive Officer
Charoen Pokphand Produce Co., Ltd.
In China, C.P. Group has always placed importance on environment protection, workplace health and safety, and a traceable quality control system as part of our commitment to the coordinated developement of resources, environment and economy. Our aim is to integrate global science and new technologies, along with capital and talent to create China’s most successful sustainability model for the whole food industry chain, which will ultimately benefit humankind.

Mr. Xie Yi
Senior Vice President
Agro-Industrial and Food Business Group, China
C.P. China Commercial Real Estate Business Group is fully alligned with C.P. Group’s sustainability vision,strategy, and 2020 goals. We are commited to building a sustainable business by integrating corperate governance, progressive leadership and young talent development programs in our operations; creating a sustainable society by learning, adapting, and innovating to deliver tangible value propositions to stakeholders; and cultivating a sustainable environment through efficient use of natural resources with advanced equipment and technologies, all in accordance with the rules, regulations and standards of China.

Mr. Michael Ross
Executive Vice Chairman
Chia Tai Di Jing (Shanghai) Investment Management Limited หรือ Shanghai Kinghill Limited
In line with the Three-Benefit Principle, I believe that love and dedication to the country and the people will bear a sense of responsibility which in turn can lead to a concerted effort to create world prosperity, and subsequently proposperity for the company. Businesses that care and undertake social responsibiltiy are the most competitive and viable companies. My management philosophy combines social responsibiltity and economic development, and it is on this path that I willl lead C.P. Lotus to excellence in accordance with the Three-Benefit Principle.

Mr. Li Wen Hai
Chief Executive Officer
C.P. Lotus Corporation
We incorporate sustainable development and the “Three-Benefit Principle” into our overall organizational development strategies. This will help elevate C.P. Group as a leading organization, which is socially responsible and sustainable in the healthcare industry. Therefore, we can achieve our ambition to save lives and improve standard of living of the population in every country where we operate.

Miss Tse, Teresa Y.Y.
Chairlady
Sino Biopharmaceutical Co., Ltd.
The Group's dedication to sustainability is the most important goal. At its core, we have a strong foundation provided by our organizational values, innovations, and employee development, as we equip our employees with the knowledge and capabilities to be the pillar of sustainable developement.
We uphold the 'Three-Benefit Principle', where the country and people must benefit first from our operation. before the Company. We are also dedicated to the vital mission of conserving and protecting the environment, to help achieve a harmonious balance between humanity and the environment, so that all of us can live together as a peaceful family on this planet.

Mr. Yang Xiaoping
Group Senior Vice Chairman
CPG Overseas CEO

Materiality Assessment Process
The content and quality of this report has been determined by considering C.P. Group’s operations as a foundation as well as the material issues impacting the economy, society, and environment, from the perspective of both internal and external stakeholders. Through this process, C.P. Group is able to communicate to its stakeholders on its commitments and performance, in line with the strategic sustainability framework. Furthermore, C.P. Group has adopted the Global Reporting Initiative (GRI) Sustainability Reporting Standards in accordance with “Core” option as the framework for report preparation. Both internal and external factors relevant to the Group’s operations have been considered for inclusion in the materiality assessment. In conducting the assessment, the Group carries out various processes and steps in accordance with the 10 GRI Standards’ principles for defining report content, which consist of Stakeholder Inclusiveness, Sustainability Context, Materiality, and Completeness. and for defining report quality, which consists of Accuracy, Balance, Clarity, Comparability, Reliability, and Timeliness. The key processes and stages of the materiality assessment are discussed below.

Materiality Assessment Results
  1. Corporate Governance
  2. Human Rights and Labor Practices
  3. Leadership and Human Capital Development
  4. Education
  1. Social Impact
  2. Health and Well-Being
  3. Stakeholder Engagement
  4. Innovation
  1. Climate Change Management)
  2. Water Stewardship
  3. Ecosystem & Biodiversity Protection
  4. Responsible Supply Chain Management

Key Performance for Sustainability

Case Study
The Sob Khun Model
ICT Talent
C.P. Cixi Agricultural Eco-Industrial Park
 

About this Report
2019
2018
2017
2016
Sustainability Reporting
C.P. Group’s sustainability report is published annually. This is the fourth report following the 2018 Sustainability Report, which was published in July 2019.
Objective of the Report
The objective of this report is to communicate C.P. Group’s commitments and performances on sustainability across all three dimensions, covering issues of importance to stakeholders.
Reporting Scope
This report discloses the overall performance of C.P. Group companies, across eight business lines, in Thailand and overseas, from 1st January to 31st December 2019.
Reporting Framework
This report has been prepared in accordance with The ‘core’ Option of the GRI, Standards.
Reporting Boundary
Performance data on human resources covers 100% of C.P. Group subsidiaries. Data on energy, water, waste, greenhouse gas emissions, and safety cover 13,209 departments across all C.P. Group subsidiaries. (For more information, please refer to pages 216-217)
Communication on Progress (CoP)
As a member of the United Nations Global Compact (UNGC) at the advanced level, the Group has prepared a Communication on Progress on the Ten Principles of the UNGC and the 21 Criteria of the UNGC Advanced level. (For more information, please refer to page 230)
UN Sustainable Development Goals (SDGs) and UN Guiding Principles on Bussiness Human Rights. (UNGPs)
C.P. Group remains committed to operating in accordance with all 17 of the UN SDGs and the UNGPs. (For more information, please refer to page 231)
Third-Party Assurance
The content and data disclosed in this report has been verified for accuracy by Lloyd’s Register Quality Assurance (LRQA), an independent, reliable, and internationally-recognized assurer. The data verified for 2019 include: GRI 302-1, GRI 303-1, GRI 305-1, GRI 305-2, GRI 306-2, and GRI 403-2. In addition, to emphasize C.P. Group’s commitment to expanding its sustainability performance reporting, in 2019 C.P. Group engaged LRQA to conduct a pre-verification process on the sustainability performance of its global operations. (For more information on 2019 data assurance, please refer to pages 232-233)
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