Charoen Pokphand Group

Sustainable development strategy
C.P. Group reports on its long-term sustainability strategy, which covers the three benchmark dimensions of environment, nutrition and social inclusion. The company also reports outcomes and progress on 2020 targets for its Thai operations.

Stakeholder engagement
Through its AA1000 Stakeholder Engagement Standard, C.P. Group provides a framework which the company uses to disclose stakeholder engagement activities, including how it selects the stakeholders, an overview of the topics discussed and their outcomes. The company reports on its stakeholder engagement framework on an annual basis.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Governance and accountability for sustainable development
Responsibility for the company’s sustainable development strategy lies with the Sustainability, Good Governance and Corporate Communication Operating Committee. The company has an opportunity to strengthen accountability by assigning this responsibility to its highest governance body and disclosing further information on its decision-making processes and oversight responsibilities, as well as linking sustainability objectives and targets to roles and remuneration.

Scope 1, 2 and 3 greenhouse gas emissions
C.P. Group sets targets to reduce its scope 1 and 2 GHG emissions and achieve net zero by 2030. It also reports on its progress. However, the company has an opportunity to strengthen its commitment by setting equally ambitious targets for its scope 3 emissions.

Sustainable fishing and aquaculture
C.P. Group has a commitment to source from certified fisheries as well as to avoid sourcing at-risk species as defined by the IUCN Red List of Threatened Species. The company has an opportunity to strengthen its commitment by setting targets and reporting progress against them as well as disclosing quantitative data that demonstrates progress in its sustainable fishing and aquaculture activities.

Protein diversification
While the company discloses that it is diversifying its protein portfolio, through investing in research to develop plant-based products, it has an opportunity to strengthen its commitment by setting targets to increase the production and consumption of alternative proteins.

Food loss and waste
C.P. Group has a time-bound target to achieve zero food waste by 2030 but does not report progress against this target across all its operations. The company has an opportunity to improve reporting on this target and also disclosing quantitative data to demonstrate that it is reducing food loss and waste in its own operations and supply chain.

Water use
C.P. Group has developed a water resources risk assessment framework that is applied across all its business groups. The company discloses having met its target to reduce water withdrawal per unit of revenue for its Thailand operations. As part of the company’s 2030 sustainability strategy and goals, it has set a water withdrawal reduction target covering all companies in the group, but is yet to disclose progress against the target.

Availability of healthy foods
Through its Food Research and Development Center, which prioritises creating healthy foods that have reduced quantities of sugar, salt and fats, the company commited to increasing the share of healthy products in its portfolio to 30% by 2020. C.P. Group has an opportunity to improve its disclosure on this topic by providing quantitative evidence of the quantities of reduced sugar, salt and fats in its product portfolio. An indication of whether the company engages with value chain partners to co-create healthier end products would also improve its performance on this topic.

Workforce nutrition
The company discloses a programme to improve workforce nutrition through its Long Tan 2 farm where it grows organic vegetables to sell to its farm staff at below market prices. This farm-to-table initiative aims to encourage employees to improve their health and lower their cost of living. However, the company has an opportunity to develop this programme further by ensuring the provision of and publicly reporting on healthy foods at work, nutrition education, nutrition-focused health checks and breastfeeding support throughout its operations.

Accessibility and affordability of healthy foods
C.P. Group is establishing a process to develop healthy products which considers factors such as product quality and safety, complete nutritional value, affordable prices, market and consumer trends, and value for society. The company also offered affordable and high-quality foods products during the COVID-19 pandemic to alleviate Thai people’s cost of living. However, it has an opportunity to develop commercial activities specifically designed to address the accessibility of healthy and nutritious foods.

Child labour
While the company commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place.

Forced labour
C.P. Group commits to prohibiting forced labour in its own operations and supply chain and discloses a requirement that prohibits its suppliers from retaining workers’ personal documents and restricting workers’ freedom of movement. In addition, the company commits to respect workers’ rights to freedom of association and collective bargaining and requires the same from its suppliers. While disclosing that suppliers shall not discriminate against workers’ representatives, the company has an opportunity to expand this statement to also include other groups such as workers and union members.

Living wage
C.P. Group does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Farmer and fisher productivity and resilience
C.P. Group has a commitment to support the resilience, productivity and access to markets for farmers in its supply chain through activities such as creating income from fishing products. The company reports on the revenue earned by farmers from the sale of blue crabs. However, C.P. Group has an opportunity to provide disclosure on the impact of its support activities to farmers in its supply chain.

Charoen Pokphand Group (C.P. Group) has a clear commitment to respect human rights and the ILO core labour rights, including the rights to freedom of association and collective bargaining. It takes action to address its human rights salient risks in its own operations and its business relationships. However, the company can strengthen its disclosure on its processes for identifying and assessing its human rights risks in its own operations and supply chain. C.P. Group further identifies and engages with the stakeholders whose human rights are potentially or actually impacted by its operations and has a grievance mechanism that is accessible to employees and external stakeholders.

C.P. Group publicly commits to respecting the health and safety of its workers and provides some disclosure on the diversity of its workforce. While suppliers are required to respect the right to collective bargaining, C.P. Group does not describe how it works to support this in its supply chain. Neither does the company disclose on collective bargaining agreement coverage in its operations. While addressing women’s participation and leadership in its sustainability report, C.P. Group does not disclose a commitment to gender equality and women’s empowerment nor set related targets. No sufficient commitments regarding paying a living wage and prohibiting excessive working hours were found.

C.P. Group publicly commits to prohibiting bribery and corruption and ensuring personal data protection. However, no sufficient policies or commitments on other key ethical business topics – tax, lobbying and political engagement – were found in the public domain.