Charoen Pokphand Foods PCL

CPF:TB TH0101A10Z01
Key Information
HQ:
Thailand
Market Cap:
$5.31bn
Primary Markets:
Asia, Europe & Russia



Company Information

Company Summary

Charoen Pokphand Foods is one of the world's leading listed agro-industrial and food conglomerates that operates vertically integrated businesses. The company is present in 16 countries and exports products from Thailand to over 30 countries. The Company operates through two segments: livestock and aquaculture. The livestock business comprises chickens, ducks, and pigs. The aquaculture business segment comprises shrimp and fish. It is involved in manufacturing animal feed, animal breeding and animal farming, meat processing, semi-cooked and fully cooked meat, food products and ready-meal products, and the meat and food retail and restaurant businesses.
Charoen Pokphand Foods

Revenue

Total revenue:

$16.0bn

Revenue by Geography

Revenue by Protein

Revenue by Product Type

Note: This financial breakdown is based on Annual reports released in 2022, containing, in most cases, FY2021.


Disclosures

CDP ScoresLast Reviewed: 11/10/2023

CDP ClimateCDP ForestsCDP Water
YesYesYes

Science Based Target InitiativeLast Reviewed: 03/10/2023

Target classificationStatusDate
1.5°CCommitted2022

Coller FAIRR Protein Producer Index

Analysis Overview

Index-Radar-2023
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins

Analysis Breakdown

Risk Score

41/100
Medium Risk



Greenhouse Gas Emissions

37/100

Scope 1, 2 & 3 Target
50/100
Type of Target
0/1.25
Strength of Target - Non-SBT
1/2
Strength of Target - SBT
1.5/1.75
Source(s): Business Overview Webpage; CP Foods Markes Earty Day with Enviromental Initiatives and a commitment to sustainable practises; SBTi Webpage; Sustainability Report 2022, page 4, 13, 77, 78

Innovation on GHG Emission Reduction
0/100
Innovation to Reduce Agriculture Emissions
0/1
Feed Farming Innovation
0/2
Animal Farming Innovation
0/2
Source(s): Sustainability Report 2022, page 78, 83

Quality of GHG Inventory
84/100
Quality and scope of GHG inventory Completeness
1.2/1.5
Feed & Animal Farming Emissions
1.5/2
Transparency of GHG Inventory
1.5/1.5
Source(s): Charoen Pokphand Foods PCL - Climate Change 2022; Environmental Performances 2022, page 3; LRQA Independent Assurance Statement 2022, page 1; Sustainability Report 2022, page 11, 85

Emissions Performance
5/100
Overall Emission Performance
0.25/5
Source(s): Environmental Performances 2022, page 3; Promoting Sustainable Agriculture Webpage; Sustainability Report 2021; Sustainability Report 2022, page 85

Climate-related Scenario Analysis
45/100
Climate-related Scenarios Analysis Conducted
1/1
Disclosure of Analysis Results on Material Risks
1.25/3
Disclosure of Financial Material Events & Alignment of CAPEX
0/1
Source(s): Charoen Pokphand Foods PCL - Climate Change 2022, page 23, 25, 27, 29, 30, 33, 35, 39, 112; Climate strategy



Deforestation & Biodiversity

27/100

Deforestation/Conversion-free Target - Soy for Animal Feed
63/100
Risk Assessment to Identify High-risk Locations
0.25/0.5
Strength of Deforestation Commitment
1.4/2
Regional & Operational Coverage of Commitment
1.25/1.25
Transparency - Progress Against Commitment
0.25/1.25
Source(s): Annual Review 2022, page 15; Charoen Pokphand Foods PCL - Forests 2022, page 7, 15, 20, 21, 49, 77, 78, 90; SUSTAINABILITY TARGETS AND PROGRESS; Sustainability Report 2022 CPF-SD-EN-20230328.pdf, page 98

Engagement, Monitoring & Traceability - Soy for Animal Feed
68/100
Supplier Engagement
1/1.25
Compliance monitoring & Traceability
2.15/3.25
Feed Innovation
0.25/0.5
Source(s): CP Foods signs MoU Webpage; Charoen Pokphand Foods PCL - Forests 2022, page 21, 85, 89, 90, 99, 100, 101, 109, 112; News - CP Foods embraces precision nutrition.pdf; Sustainability Report 2022, page 98; Sustainable Sourcing Policy and Supplier Guiding Principle 2021, page 8

Aquaculture Certification (ASC, BAP, GlobalGAP, SSP)
40/100
Proportion of Farms Certified
2/5
Source(s): Sustainability Report 2022, page 9, 24, 32

Feed Ingredients & Conversion Ratios
0/100
Feed Disclosure
0/2
Performance of Feed Metrics
0/3
Source(s): Sustainability News Webpage; Sustainability Report; Sustainability Report 2022, page 98, 99

Feed Innovation
0/100
Strategy
0/2.75
Performance
0/2.25
Source(s): CP Foods signs MoU Webpage; Sustainability Report 2022, page 99

Sea Lice Management - Salmon (Fish at Sea Only)
0/100
Sea Lice Disclosure & Management
0/2
Cleaner Fish
0/3
Source(s):

Ecosystem Impacts
15/100
Escapes
0/3.25
Reducing Biodiversity Impacts
0.75/1.25
Algal Blooms
0/0.5
Source(s): Sustainability Report 2022, page 106, 107



Water Use & Scarcity

49/100

Water Use & Scarcity in Facilities
65/100
Monitoring Water Consumption & Withdrawals
0.65/0.75
Target to Reduce Water Consumption & Withdrawals
0.4/1
Disclosure & Performance of Water Risks in Facilities
2.2/3.25
Source(s): Charoen Pokphand Foods PCL - CDP Water Security 2022; Charoen Pokphand Foods PCL - Water Security 2022, page 35; Environmental Performances 2022, page 4, 6; LRQA Independent Assurance Statement 2022, page 1; Sustainability Report 2022, page 69, 71, 72, 73, 74, 75

Water Use & Scarcity in Feed Farming
25/100
Supplier Engagement in Water Use in Feed Farming
1.25/2.5
Disclosure of Water Risks in Feed Farming
0/2.5
Source(s): Charoen Pokphand Foods PCL - CDP Water Security 2022; Charoen Pokphand Foods PCL - Water Security 2022, page 12, 13; Sustainability Report 2022, page 69; Sustainable Sourcing Policy and Supplier Guiding Principle 2021, page 14, 16

Water Use & Scarcity in Animal Farming
56/100
Supplier Engagement in Water Use in Animal Farming
2.8/3
Disclosure of Water Risks in Animal Farming
0/2
Source(s): Annual Report 2022; Charoen Pokphand Foods PCL - CDP Water Security 2022; Sourcing Policy, page 16; Sustainability Report 2022, page 54



Waste & Pollution

28/100

Wastewater at Facilities
54/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
0/1.5
Transparency on Water Pollution Risks
1.9/2
Performance on Wastewater Quality & Volume Discharged
0.8/1.5
Source(s): CPF Environmental Management website; Charoen Pokphand Foods PCL - Water Security 2022, page 35; Environmental Performances 2022, page 6, 7, 8; LRQA Independent Assurance Statement 2022, page 1; Sustainability Report 2022, page 55, 82, 88

Nutrient Management in Feed Farming
23/100
Supplier Engagement in Nutrient Pollution Risks
0.53/4
Innovation to Improve Nutrient Management in Feed Farming
0.6/1
Source(s): Promoting Sustainable Agriculture Webpage, page 1; Sustainable Sourcing Policy and Supplier Guiding Principle 2021, page 14

Manure Management in Animal Farming
26/100
Disclosure of Pollution Risks from Manure
0.4/1.25
Supplier Engagement in Manure Management
0.75/1.5
Innovation to Improve Nutrient Management in Animal Farming
0.13/2.25
Source(s): Charoen Pokphand Foods PCL - CDP Water Security 2022; News - CP Foods embraces precision nutrition.pdf; Promoting Sustainable Agriculture Webpage; Sustainability Report 2022, page 55, 82, 88

Nutrient Management in Aquaculture
8/100
Disclosure of Pollution Risks in Animal Farming Operations
0.3/3.75
Performance on Pollution Management
0.1/1.25
Source(s): ASC The Shrimp Standard; Environmental Performances 2022, page 7; Supporting Communities around the Establishments Webpage; Sustainability Report 2022, page 32, 71



Antibiotics

35/100

Policy on Antibiotics Use
69/100
Policy on Antibiotics Use
3.45/5
Source(s): Animal Welfare Policy 2018, page 4, 9; Antibiotics Policy 2017; Antibiotics Webpage; Sustainability Report 2022, page 35

Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
0/5
Source(s):



Animal Welfare

33/100

Animal Welfare Policy
68/100
Welfare Policy
1.5/2
Key Welfare Issues
1.9/3
Source(s): Animal Farming according to Animal Welfare Principles Webpage; Animal Welfare Policy 2018, page 4, 6, 7, 8; Sustainability Report 2022, page 30, 31, 32, 33, 34, 35

Assurance & Certification
40/100
Auditing & Assurance by an Animal Welfare Organisation
1/4
Public Reporting on Welfare
1/1
Source(s): Animal Farming according to Animal Welfare Principles Webpage; Sustainability Report 2022, page 30, 32, 33

Performance on Key Material Risks
43/100
Performance on Key Material Welfare Risks by Protein
2.13/5
Source(s): Animal Farming according to Animal Welfare Principles Webpage; Sustainability Report 2022, page 12, 30, 33

Aquatic Animal Welfare
27/100
Welfare Policy
1/2.5
Reporting on Animal Welfare Metrics
0.33/2
Reporting on Measures to Improve Welfare
0/0.5
Source(s): Animal Farming according to Animal Welfare Principles Webpage; Animal Welfare Policy 2018, page 4, 7; Sustainability Report 2022, page 33

Disease Management - All Fish
10/100
Mortality Rates
0/3.5
Disease Outbreak
0.5/1.5
Source(s): Annual Report 2022, page 7, 19

Disease Management - Shrimp Aquaculture
10/100
Mortality
0/2
Disease Outbreak & Biosecurity
0.5/3
Source(s): Annual Report 2022, page 19



Working Conditions

59/100

Human Rights
70/100
Strength of Policy
1/1
Due Diligence Process
1.5/3
Evidence of Remediation
1/1
Source(s): Annual Report 2022, page 78; CPF Human Rights Due Diligence 2021, page 1, 14, 19; Human Rights Due Diligence Webpage; Human Rights Policy 2021, page 2; Sustainability Report 2022, page 41, 42, 46, 50, 79

Fair Working Conditions
72/100
Policy for Direct Operations
1.85/3
Monitoring & Discosure
1.75/2
Source(s): Annual Report 2022, page 67, 78, 143; CPF's employment and labour management policy, page 4, 7; Employment and Labor Management Policy 2019, page 4, 6; Non-Discrimination and Anti-Harassment Policy 2021, page 3; Statement on Slavery and Human Trafficking 2021, page 12, 25, 26, 36; Sustainability Report 2022, page 50, 51, 64, 94, 95; Sustainable Sourcing Policy and Supplier Guiding Principle 2021, page 9, 10, 11

Safety & Turnover Data
54/100
Committee representation of workers
0.7/2
Disclosure of safety and turnover data
2/3
Source(s): Occupational Health and Safety Performances (Thailand and Overseas) 2022, page 1; Occupational Health and Safety Webpage; People Performance 2019 - 2022, page 6; Safety, Health Environment, and Energy Policy 2019, page 4, 10, 12; Sustainability Report 2021, page 65; Sustainability Report 2022, page 66, 67

Freedom of Association
38/100
Strength of Policies
1/3
Disclosure of Collective Bargaining Metrics
0.9/2
Source(s): CPF's human right policy, page 5; Employment and Labor Management Policy 2019, page 6; People Performance 2019 - 2022, page 10; Sustainable Sourcing Policy and Supplier Guiding Principle 2021, page 5, 11



Food Safety

48/100

Food Safety System
30/100
Certifications
1.25/3.5
Performance
0.25/1.5
Source(s): Sustainability Report 2022, page 24, 25, 27; Sustainable Sourcing Policy and Supplier Guiding Principle 2021, page 8

Product Recalls & Market Bans
65/100
Product Recall Systems
2.75/3
Performance
0.5/2
Source(s): Our Management Approach Webpage, page 1; Sustainability Report 2022, page 23



Sustainability Governance

57/100

Assessment of a Company's Sustainability Governance
57/100
Board Sustainability
1.25/2
Incentives & Policy Engagement
1.35/2.5
Innovation & Benchmarking
0.25/0.5
Source(s): Annual Report 2022, page 14, 15, 16, 102; Board of Directors Mr. Adirek Sripratak Webpage; Charoen Pokphand Foods PCL - Forests 2022, page 59, 60; Contributions to External Organizations and Associations Webpage; Corporate Governance and Sustainable Development Committee Webpage; Sustainability Governance Structure Webpage; Sustainability Report 2022, page 15, 18, 34, 103; Sustainability through Partnership Webpage



Alternative Proteins

55/100

Diversification of Products to Alternative Protein Sources
55/100
Existing product portfolio
0.25/2.5
Investing for future growth
2.5/2.5
Source(s): Annual Report 2022, page 28, 39, 40; Press release: MEAT ZERO kick off; Sustainability Report 2022, page 14, 28, 83

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Waste & Pollution Engagement

Analysis Overview

Waste-Pollution-Radar
Risk Assessment Value Chain Coverage Risk Mitigation Circularity Company Engagement

Analysis Breakdown




Risk Assessment

Poor
Coverage of water quality risk assessment
Transparency and disclosure of water quality indicators
Recognition of nutrient pollution risk on biodiversity



Value Chain Coverage

Poor
Inclusion of upstream feed and livestock suppliers in risk assessment
Downstream use of manure by animal feed suppliers
Acknowledgment of regulatory risks
Transparency on non-compliance from suppliers



Risk Mitigation

Medium
Biogas generation and organic fertilisers from animal waste
Target-setting for water quality
Support to third-party suppliers



Circularity

Poor
Pilot projects around nutrient circularity
Disclosure of investment in circular solutions
Targets to increase share of manure under circular initiatives



Company Engagement

Good
Level of company engagement with the coalition

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