Coller FAIRR Protein Producer Index
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Greenhouse Gas Emissions
Scope 1, 2 & 3 Target
Type of Target
The company is committed to setting a Science-Based Target Business Ambition for 1.5C, which involves a commitment to reaching net-zero GHG emissions by 2050. It plans to achieve it through various decarbonisation methods and carbon removal actions. It mentions getting approval by 2025.
Strength of Target - Non-SBT
The company has set an intensity target to reduce 25% of GHG emissions from indirect and direct emissions per production unit compared to the base year 2015 by 2025. It already reports progress of 92% from the set target. However, the target only applies to its operations in Thailand. It is unclear if the company's emissions intensity target applies to Scope 3 emissions.
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
Strength of Target - SBT
The company is committed to setting a Net-Zero target in alignment with the science-based target by 2030. It has committed to Net Zero and near-term Scope 1 and 2 targets. However, no information has been provided on whether these targets have been submitted for verification.
Innovation on GHG Emission Reduction
Innovation to Reduce Agriculture Emissions
The company has prepared its Sustainable Sourcing Policy and Supplier Guiding Principle to encourage suppliers to reduce greenhouse gas emissions. It installed solar cells to generate electricity in animal feed businesses, farms, and food processing businesses across Thailand for GHG reduction. However, it does not explicitly mention any programmes to reduce emissions from agriculture.
Feed Farming Innovation
The company does not discuss efforts to reduce emissions at the feed farming level.
Source(s): Sustainability Report 2022, page 78, 83
Animal Farming Innovation
The company does not provide any information in the current reporting period. It disclosed that it was working with an innovative feed manufacturer in the last reporting period.
Quality of GHG Inventory
Quality and scope of GHG inventory Completeness
The company discloses that its Scope 1 and 2 emissions were 288,000 tons of CO2e and 1,195,000 tons of CO2e, respectively, for all its operations. Scope 3 emissions from upstream and downstream activities were 2,619,000 tons of CO2e and 1,793,000 tons of CO2e, respectively. The geographic scope for Scope 3 is limited to certain geographies as emissions disclosure only applies to the company's Thailand operations and accounts for 74% of the total GHG emissions.
Feed & Animal Farming Emissions
CPF discloses that its biogenic methane emission was 509,170 tons of CO2e in 2022. It discloses emissions from purchases of goods and services, including animal feed ingredients. This constitutes 37.3% of the company's total emissions for its Thai operations.
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
Transparency of GHG Inventory
The company has responded to the 2022 CDP Climate Change questionnaire. It states that its environmental performance has been subjected to independent third-party assurance by LRQA (Thailand) Limited.
Source(s): Environmental Performances 2022, page 3; Promoting Sustainable Agriculture Webpage; Sustainability Report 2021; Sustainability Report 2022, page 85
Overall Emission Performance
The company discloses that from 2020 to 2022, Scope 1, 2, and 3 emissions increased by 4.34%. Therefore, GHG inventory is incomplete. The geographic scope is considered limited to certain geographies as emissions are disclosed only for the company's Thailand operations. It has implemented “Self-Sufficient Farmers, Sustainable Corn Projects” to reduce the emissions arising from agriculture and the use of feed additives. However, quantitative data is not disclosed.
Climate-related Scenario Analysis
Climate-related Scenarios Analysis Conducted
The company analysed a physical climate scenario by 1.5 Degree Scenario (2DS), RCP 4.5 and RCP 8.5 scenarios. It discusses the result of the potential impact of important resources of CPF’s business (Feed, Farm & Food operations). The scenario analysis only covers Thailand's operation.
Disclosure of Analysis Results on Material Risks
The company acknowledge the climate-related risks and states that the increase in global temperature rise by 4 degrees may cause severe and more frequent natural disasters such as storms, heat waves, floods and droughts and such events will affect production quantity and the cost of agricultural raw materials such as corn and soybeans. It has developed short-term and medium-term strategies to tackle this risk. In the short term, it plans to track global demand supply and explore potential sources of critical raw materials so that alternative sources are in place when there is a risk of shortages. It also plans to hedge using forward contracts and monitor stock capacity daily to protect the business from price volatility. In the medium term, it seeks to develop substitutes for critical raw materials highly vulnerable to climate change. It mentions that its operating cost might be increased because of increased energy costs. However, it has implemented various projects to reduce GHG emissions, i.e. CPF solar energy, which led to THB 21 million per year in electricity cost savings. It has a strategy to decarbonise its operations. As part of its 2022 goal to end coal usage, it has continued to install solar panels, increase biogas use, and invest in energy efficiency projects. It mentions anticipating its carbon tax being regulated in the next three years. However, no further information was found in the current reporting period. It also says the severe and extreme changes to the climate throughout 2022. However, it does not disclose the number of financially material events due to climate risk.
Source(s): Charoen Pokphand Foods PCL - Climate Change 2022, page 23, 25, 27, 29, 30, 33, 35, 39, 112; Climate strategy
Disclosure of Financial Material Events & Alignment of CAPEX
The company discloses that the capital expenditure in 2023 for Thailand and overseas operations totalled THB 25,000 million (excluding capital expenditures for mergers and acquisitions). However, it does not mention that the spending aligns with its GHG targets.
Deforestation & Biodiversity
Deforestation/Conversion-free Target - Soy for Animal Feed
Risk Assessment to Identify High-risk Locations
The company states that its primary raw materials used in animal feed production are corn, soybean meal, fish meal, rice bran, and other vitamin and mineral components. It sources soy from the USA and Brazil. Brazil is considered to be a high-risk deforestation area. The company discloses that 23% of its raw materials were sourced from deforestation-free regions. CPF has undertaken a forests-related risk assessment, assessing soy supply chain-related risks. However, it does not disclose high-risk locations.
Strength of Deforestation Commitment
The company had disclosed a commitment that 100% of soy sourced will come from areas which have zero net deforestation by 2030. The cutoff date for deforestation-free procurement of soy is 2014.
Regional & Operational Coverage of Commitment
CPF's commitment applies to 100% of soy used in the company's supply chain.
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
Transparency - Progress Against Commitment
The company discloses that 46.34% of the soybean meal procured worldwide was traceable to the countries and states of origin. Furthermore, the company discloses that around 50% of soybean meal procured for its Thailand operations was traceable to the nations and states of origin. However, it does not disclose the proportion of soy from deforestation-free areas. CPF responded to the CDP Forests questionnaire in 2022.
Engagement, Monitoring & Traceability - Soy for Animal Feed
It traces its suppliers to ensure they do not source commodities like soy from deforestation-risk areas.CPF states that it promotes and incentivises its soy suppliers through its capacity-building programme. These programmes aim to increase understanding and awareness through quality and sustainability audits, build supplier networks, and promote knowledge sharing to improve practices by international standards.
Compliance monitoring & Traceability
CPF monitors compliance by using the Online Supplier Sustainability Self-Assessment, which is in place for indirect feed raw material suppliers. The company conducts annual supply chain ESG risk assessments. It also performs sustainability audit programs on critical suppliers and high-risk suppliers based on self-assessment results either by second-party or third-party auditors. CPF's response to non-compliance varies according to severity, for example, looking at factors such as the total area of land converted or deforested, the irreversibility of the impact, the impact on natural ecosystems, and the persistence of the non-compliance. These factors determine the course of action the company will take. It also develops time-bound targets to bring suppliers back into compliance and provides information on appropriate measures they can handle. In 2022, the company disclosed that globally, 50.17% of its soybean meal is traceable to the country's state-level origin, and 46.34% is traceable back to its state-level origin for its operations in Thailand. The company aims to achieve 100% traceability of soybean meal sourced.
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
The company discusses undertaking a 'precision nutrition' approach to bring about innovation in animal feed and is undertaking insect meal trials. The company has also partnered with international consulting firms, including Royal DSM NV and Blonk Consultants, to work on developing sustainable animal feed. In addition, the company has developed a feed formula for laying hens that reduced nitrogen in manure by 12-13%.
Aquaculture Certification (ASC, BAP, GlobalGAP, SSP)
Source(s): Sustainability Report 2022, page 9, 24, 32
Proportion of Farms Certified
The company discloses holding BAP, Global GAP and ASC certifications for aquaculture operations. The company only discloses the information for its Thai and Vietnamese operations, despite having aquaculture operations in China, India, the Philippines, Malaysia, Sri Lanka, Poland and the US. Therefore, certification is partial. Although the company states that all farms in Thailand are in some way certified, the distribution of farms between countries is unclear. Therefore, the percentage of farms covered cannot be determined.
Feed Ingredients & Conversion Ratios
The company states that it purchases fishmeal from factories certified by MarinTrust standards in line with the Food and Agriculture Organization of the United Nations Code of Conduct for Responsible Fisheries. However, sourced soy is not certified. The company does disclose any other information related to feed ingredients and policy.
Source(s): Sustainability News Webpage; Sustainability Report; Sustainability Report 2022, page 98, 99
Performance of Feed Metrics
The overall percentage of certified ingredients is not disclosed. Similarly, the company fails to disclose the protein conversion efficiency and the feed conversion ratio.
The company states that 100% of fishmeal used in its Thai operations has been sourced from by-products of fish processing plants certified under MarinTrust. In Vietnam 56.91% of fishmeal is sourced from processing by-products certified under MarinTrust. However, it does not mention any strategies, goals, or timelines for using seafood trimmings produced from their operations and processing waste. The company states it is conducting research on new alternative proteins such as single-cell protein and insect protein. However, no further information is provided or whether the company has an explicit strategy to increase usage of these alternatives. The company states it has carried out a risk assessment accounting for the volatility in the prices of raw materials used in the production of animal feed. It states that severe droughts, storms and floods around the world have increased the price of feed raw materials. However, it does not disclose how marine and soy ingredient availability going forward will impact production.
Source(s): CP Foods signs MoU Webpage; Sustainability Report 2022, page 99
The company does not dsiclose the percentage of R&D allocated to novel ingredients development. Further, it does not disclose a target related to feed innovation. It also does not disclose the average EPA and DHA content of salmon it produces.
Sea Lice Management - Salmon (Fish at Sea Only)
Sea Lice Disclosure & Management
The company does not disclose information about sea lice management.
The company does not discuss non-medicinal/non-chemical approaches taken to prevent sea lice infestation. It does not disclose investment into cleaner fish husbandry or disclose the mortalities of cleaner fish used.
The company does not disclose data on escapes, or disclose the financial cost of all escape events and/or provides a discussion of escapement prevention. Finally, the company does not disclose a timebound target for 0 escapes.
Reducing Biodiversity Impacts
The company discloses that it has undertaken a biodiversity risk screening across its Thai operations. The company states that it has defined biodiversity risk mitigation plans for the three high-risk sites identified in the assessment, but no further detail is provided. The company has also taken several measures in conserving, protecting and restoring watershed and mangrove forests. It aims to preserve biodiversity through the CPF Grow-Share-Protect Mangrove Forestation Project and the CPF Rak Ni-Ves, Pasak Watershed, Khao Phraya Doen Thong project. Both these projects focus on conserving and restoring forests by continually afforesting, reforesting and monitoring.
Source(s): Sustainability Report 2022, page 106, 107
The company does not disclose a management plan in the event of algal blooms.
Water Use & Scarcity
Water Use & Scarcity in Facilities
Monitoring Water Consumption & Withdrawals
The company has conducted a water risk assessment and has identified that 46% of its operating areas are considered extraordinarily high or high-water stress areas. It mentions that it withdraws 51% of water from water-stressed areas and 49% from non-water-stressed areas. The company discloses the location of its facilities exposed to water scarcity by region and river basin. It recognises the importance of water consumption for its operations. It is committed to implementing a holistic approach to water management by increasing internal water efficiency, assessing water-related risks and implementing projects with various stakeholders to maintain water sources. In 2022, the company developed projects relating to water management for the community, such as the Groundwater Bank Project. The company reports the total water consumption in FY2022.
Target to Reduce Water Consumption & Withdrawals
The company has set a target to reduce water withdrawals by 30% per production unit by 2025, with a baseline year 2015. It reports that in 2022, it achieved a 53% reduction in water withdrawal per production unit compared to 2015. However, this target only covers Thai operations.
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
Disclosure & Performance of Water Risks in Facilities
The company discloses the total volume of water withdrawals and discloses this information by source. CPF mentions that it withdraws 51% of water from water-stressed areas and 49% of non-water-stressed regions. It discloses its anticipated water-related forward trend for CAPEX and its expected water-related forward trend for OPEX. Data is audited by LIoyd Register’s Quality Assurance Ltd. (LRQA). The assurance also covers environmental performance. The company responded to the CDP Water questionnaire in 2022. It started disclosing water consumption data for its overseas operations in 2022, so a direct comparison cannot be made to see if the overall water consumption and withdrawals have decreased year over year.
Water Use & Scarcity in Feed Farming
Supplier Engagement in Water Use in Feed Farming
The company is a vertically integrated processor involved in animal feed production, animal breeding, farming and processing. It appears the company does not grow feed but procures raw materials to manufacture feed. The company explicitly states in its Supplier Policy that suppliers shall conduct water risk and impact assessment and have water management plans in place. The company aims to support all tier-1 suppliers with high water impact to have water management plans by 2030. The company mentions it is progressing towards this target but does not mention the proportion of suppliers currently supported.
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
Disclosure of Water Risks in Feed Farming
The company mentions that it sources 11-25% of its fish, seafood, and raw materials, including Palm Oil, Corn and Fishmeal, from water-stressed areas. However, the company provides an aggregated number and does not explicitly disclose the proportion of each feed ingredient sourced from water-stressed regions.
Water Use & Scarcity in Animal Farming
Supplier Engagement in Water Use in Animal Farming
The company discloses the proportion of swine (54.14%), poultry (63.29%) and fish and seafood (11.95%) produced in areas with water stress. It aims to support all high-impact tier-1 suppliers to develop water management plans by 2030. The company discloses that in 2022, it requested all these suppliers to report and identify their water use, level of risk and water-related policies.
Source(s): Annual Report 2022; Charoen Pokphand Foods PCL - CDP Water Security 2022; Sourcing Policy, page 16; Sustainability Report 2022, page 54
Disclosure of Water Risks in Animal Farming
The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.
Waste & Pollution
Wastewater at Facilities
Disclosure & Targets for Wastewater Quality & Volume Discharged
CPF discloses it had two incidents of non-standard discharged water in 2022. The company discloses that it conducted a water-related risk assessment and that 46% of its Thailand operations are in water-stress areas. However, the tool is not used company-wide to measure water scarcity risks. The company defines the risk categories overall based on water availability only. The company monitors water quality from external sources, but the process details must be provided. CPF only mentions using WRI Aqueduct from a water quality perspective when analysing critical Tier 1 suppliers of palm oil, corn and fishmeal, but not meat products.
Transparency on Water Pollution Risks
The company discloses the quality of wastewater discharge, providing a measure of BOD and nitrogen. This data covers the whole business. It discloses the volume of wastewater discharge in 2022. A third party, LRQA (Thailand), audits discharged wastewater volume and quality data. CPF has responded to the CDP Water questionnaire in 2022.
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
Performance on Wastewater Quality & Volume Discharged
The company produces biogas from wastewater from processing facilities. It reports an increase in total BOD and Nitrogen discharge between FY21 and FY22. The volume of wastewater discharge has decreased in the company's Thai operations in the last reporting period.
Nutrient Management in Feed Farming
Supplier Engagement in Nutrient Pollution Risks
The company mentions that suppliers should reduce environmental pollution, such as excessive use of chemical insecticides. However, the company does not say nutrient management or fertiliser usage. It provides support to its feed suppliers in the form of promoting farming knowledge and good agricultural practices to meet the standards of the Thai Agricultural Standard. This includes information on soil analysis and appropriate usage of fertiliser and chemicals and has been provided to farmers participating in the Self-reliant Farmers and Sustainable Maize Project since 2015.
Source(s): Promoting Sustainable Agriculture Webpage, page 1; Sustainable Sourcing Policy and Supplier Guiding Principle 2021, page 14
Innovation to Improve Nutrient Management in Feed Farming
The company launched the 'Self-Sufficient Farmers, Sustainable Corn' Project. This includes training farmers on soil analysis, post-harvest management and productivity, and using less chemical fertiliser. The program also helped minimise environmental negative impacts due to suitable agricultural waste management during cultivation and no burning post-harvest period. The company aimed to engage with more than 11,150 small farmers through the project by 2023.
Manure Management in Animal Farming
Disclosure of Pollution Risks from Manure
The company treats animal manure into biogas and generates electricity for its production plants.
Supplier Engagement in Manure Management
The company mentions it supports contract farmers in installing biogas systems and using biogas produced from swine farming as a method of manure management.
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
Innovation to Improve Nutrient Management in Animal Farming
The company has developed feeds that improve nutrient absorption and digestion. This feed reduces odour from manure and the quantity of nitrogen excreted by livestock. The company states that this eco-friendly feed can reduce excess nitrogen excretion from swine and chicken by 20-30% and 12-13%, respectively.
Nutrient Management in Aquaculture
Disclosure of Pollution Risks in Animal Farming Operations
The company's Shrimp farms in Thailand and Vietnam are ASC-certified, meaning sludge discharge is not permitted. The company has not disclosed any information regarding uncertified sites. The company discloses that the nitrogen levels of wastewater discharged from its aquatic animal farm business for its operations in Thailand is 3.11 mg/L.
Source(s): ASC The Shrimp Standard; Environmental Performances 2022, page 7; Supporting Communities around the Establishments Webpage; Sustainability Report 2022, page 32, 71
Performance on Pollution Management
The company aims to identify sensitive receptors from water intake, including water sources that may be affected by discharge, such as water conservation sources, controlled water sources or the community’s key water sources. However, it does not provide information that all discharged water goes through a treatment system. The company's Shrimp farms in Thailand and Vietnam are ASC-certified. Therefore, these sites conform to the limits of settleable solids in effluent water. The company engages with stakeholders using community tools such as geo-social mapping, building dialogues to explore community requirements and set promotion plans. However, this includes projects such as its Growing Futures Project to promote good nutrition in children and youth studying in schools around factories and farms, amongst others, rather than engagement to identify key stakeholders that may be impacted negatively by being located near fish farming operations (waste, pollution, odour, noise).
Policy on Antibiotics Use
Source(s): Animal Welfare Policy 2018, page 4, 9; Antibiotics Policy 2017; Antibiotics Webpage; Sustainability Report 2022, page 35
Policy on Antibiotics Use
The company commits to prohibiting the use of vital antibiotics in its operations and has implemented a variety of measures to enhance welfare and reduce the need for antibiotics, including vaccination, sanitation, enhanced nutrition, biosecurity, and the use of probiotics.
Disclosure of Quantity of Antibiotics Used
Disclosure of Quantity of Antibiotics Used
The company neither discloses the quantity of antibiotics used nor provides specific reasons for its application.
Animal Welfare Policy
The company commits to animal welfare through a standalone policy that adheres to the Five Freedoms and is applicable to itself, its subsidiaries, and business partners. It also trains personnel in the principles and administration of animal welfare. Furthermore, it focuses on R&D, incorporating technologies like "smart farm" systems for real-time monitoring and improving incubation efficiency.
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
Key Welfare Issues
The company commits to raising 100% of sows in group housing by 2030 and avoids routine castration, teeth clipping, and tail docking in swine and shrimp operations. It has a policy to limit animal transport times to 8 hours and mandates regular water provision. International stunning methods are used pre-slaughter, and enriched environments for animal welfare are provided. However, there's no commitment to avoiding close confinement for broiler chickens or laying hens, and no mention of avoiding routine mutilation in broiler farms.
Assurance & Certification
Auditing & Assurance by an Animal Welfare Organisation
The company's farms and contracted farms are certified and audited every three years on livestock production standards. Its broiler chickens have multiple certifications including QS, Global GAP, ALO, and Farm F1rst Poultry Welfare Standard. Additionally, its layer hens in Thailand meet cage-free egg standards, and its swine operations in Thailand and Vietnam are Global Gap Certified. The company holds Global Good Agricultural Practice (G.A.P.) Integrated Farm Assurance certification for its production chain in Thailand. However, this certification does not apply to operations outside Thailand. The company has one farm in Thailand certified by the Department of Livestock Development under the country's inaugural cage-free farming practice standard. Another farm in Taiwan is certified by the Taiwan Sustainable Aquaculture Standard (TSAS) Animal Welfare Standard. The company states that its broiler chicken operations in Thailand are certified by Farm First Poultry Welfare Standard from Lloyd’s Register UK, Global Good Agricultural Practice (GAP) by Control Union International and QS Standard.
Source(s): Animal Farming according to Animal Welfare Principles Webpage; Sustainability Report 2022, page 30, 32, 33
Public Reporting on Welfare
The company assesses animal welfare in its core products globally, focusing on transport livability and cage-free housing. It also has livestock welfare outcome measures in both Thailand and overseas.
Performance on Key Material Risks
Source(s): Animal Farming according to Animal Welfare Principles Webpage; Sustainability Report 2022, page 12, 30, 33
Performance on Key Material Welfare Risks by Protein
The company commits to 100% of sows being raised in group gestation pens, with 40% progress in 2022. It also commits to reducing physical alterations like castration, teeth clipping, and tail docking but continues these practices. An enriched environment is provided for pigs. The average stocking density is ≤30 kg/m2, and 64.87% of broilers have access to enrichment like perches for poultry. Layer chickens are raised in cage-free housing and have specific areas for laying eggs and scratching. However, the company does not disclose information on immunocastration, humane slaughter methods, maximum density for layer chickens, or the number of nest boxes per group.
Aquatic Animal Welfare
The company commits to providing humane treatment to animals in line with the “Five Freedoms Principles” both at company-owned and contracted farms. However, the statements are too broad and do not provide enough supplementary information on actions taken to ensure high welfare standards in aquaculture operations. The company is encouraged to improve the clarity of its disclosure. The company stuns shrimp on ice, a higher welfare technique. It uses an electrical water bath stunning in its fish production.
Reporting on Animal Welfare Metrics
The company mentions that 16.3% of female shrimps are raised with no eyestalk ablation. However, it does not mention zero use of eyestalk ablations. The company discloses an increase in black scar lesion % in shrimps, indicating that metrics are collected but does not provide detailed information about welfare metrics.
Source(s): Animal Farming according to Animal Welfare Principles Webpage; Animal Welfare Policy 2018, page 4, 7; Sustainability Report 2022, page 33
Reporting on Measures to Improve Welfare
The company does not disclose information in relation to the eye-stalk ablation of shrimps.
Disease Management - All Fish
The company does not disclose mortality, disease incidence, management or prevention information.
Source(s): Annual Report 2022, page 7, 19
The company does not disclose mortality related to disease incidence. The company states that to reduce disease incidence, it employs feed formulations, including probiotics and prebiotics and uses the Recirculation Aquaculture System during early production phases. Furthermore, it integrates technology-driven real-time monitoring and control of larval hatching, facilitating early identification of potential health challenges and enabling proactive, non-chemical responses.
Disease Management - Shrimp Aquaculture
The company does not disclose the mortality rate for shrimp.
Source(s): Annual Report 2022, page 19
Disease Outbreak & Biosecurity
The company employs Ultrafiltration (UF) technology to purify treated water for recirculation in shrimp ponds, effectively diminishing the need for frequent water changes. The company averts potential epidemics by implementing the Recirculating Aquaculture System (RAS) and conserves natural resources through water recirculation. Nevertheless, it remains unclear whether these practices apply across the company's operations.
Strength of Policy
The company commits in writing to respect human rights as reflected in The United Nations Universal Declaration of Human Rights (UNDHR) and The International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work.
Due Diligence Process
The company has a detailed human rights due diligence system in place. It conducts human rights risk assessments regularly to identify its salient human rights risks and their impact on the business. The HRDD process also covers its value chain, joint ventures and mergers and acquisitions of the company. Furthermore, the company provides human rights training for all its workers, covering business units in Thailand and overseas. However, the company does not disclose conducting human rights audits, active monitoring or the next steps of action it would take if it found a human rights violation. Also, the company does not mention mitigation and remediation procedures for its supply chain.
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
Evidence of Remediation
The company discloses that in FY2022, it identified five salient human rights issues in its operation (employee health and safety, community health adversely affected by processes, community standard of living, machinery handling) and two issues in its Tier 1 supply chain (working hours and employee benefits). In addition, the human rights risk assessment found risks in 14.04% of the company's total operating areas. The company describes remediation and prevention measures to tackle identified human rights risks.
Fair Working Conditions
Policy for Direct Operations
The company commits in writing to prohibit discrimination, child labour, forced labour and abuse and requires suppliers to adhere to these policies. However, while the company has conducted a Living Wage exercise, it is unclear whether this has ensured that all its employees are paid a fair wage. Further, the company does not state that all employees are granted paid sick leave.
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
Monitoring & Discosure
The company has a grievance mechanism operated by a third party, LPN, for its direct operations to allow employees and external stakeholders to express positive and negative feedback, suggestions and complaints. This whistleblowing system also allows for anonymous reporting. Furthermore, the company has established a Welfare Committee of the Workplace, where employees can raise suggestions, queries and concerns to improve their working conditions. The company discloses that in 2022, it received one complaint through the hotline operated by LPN and 91 cases through other channels. The company categorised 15 of the 91 grievances into fraud, non-compliance and corruption/bribery. The company mentions that no complaints were related to human rights violations.
Safety & Turnover Data
Committee representation of workers
The company is committed to providing all employees with a safe, healthy and injury-free work environment. It has also established an occupational health and safety (OHS) management system in line with international standards, including the ISO45001:2018 and ISO50001:2018, which an independent certification body has audited. In addition, the company has appointed an OHS committee which covers all units at the department level. However, it is still being determined if these committees include worker representatives.
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
Disclosure of safety and turnover data
The company discloses the total Lost Time Injury Frequency Rate per 200,000 hours worked for 2022 for employees and workers was 0.235 and 0.0047, respectively. In 2021, the company only reported an LTIR for its Thailand employees, which was 0.38. The company demonstrates an improvement in LTIR for employees in its Thailand operation from 2021 to 2022. However, improvements for overseas employees and other workers cannot be determined due to data unavailability. In addition, the company discloses that there were 4 and 1 fatalities for employees and workers, respectively, in the reporting year. The company disclosed zero fatalities in 2021, but this data only covers its Thailand operation. The number of fatalities in Thailand for which there is comparable data has increased from 0 to 3 in FY2022. The company reported a voluntary turnover rate of 34.78% and 9.89% for workers and employees, respectively, across its operations. It also disaggregates turnover by seniority level.
Freedom of Association
Strength of Policies
The company states it respects employees' right to join or form lawful associations and participate in collective bargaining but does not disclose the unionisation rate. The company also expects suppliers to allow employees to form or join labour unions and participate in collective bargaining. However, no evidence was found of the company's actions to support its workers' rights to freedom of association and collective bargaining.
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
Disclosure of Collective Bargaining Metrics
The company provides a basic statement on the right to collective bargaining but does not disclose the percentage of workers covered by collective bargaining agreements. Also, the company mentions that it has a workforce of 135,284 and employs no part-time or temporary employees.
Food Safety System
The company has listed various certifications held by its feed, farm-processing and food business, stating that 100% of plants and farms are standard certified. It discloses that some of its plants are approved by BRC and GlobalGAP, which are GFSI-recognised certifications. However, the total proportion of GFSI-certified sites needs to be clarified. It expects suppliers to provide high-quality, environmentally friendly, safe products per the company’s requirements and specifications. However, it does not explicitly state a clause expecting suppliers to be certified by a GFSI-recognised standard.
Source(s): Sustainability Report 2022, page 24, 25, 27; Sustainable Sourcing Policy and Supplier Guiding Principle 2021, page 8
The company does not disclose the number or frequency of food safety audits. Nor does it disclose a corrective action rate for the reporting period. However, it discusses a traceability system, “iTrace Blockchain," which enables consumers to trace the origin of purchased products, such as meat processing plants and animal farms, and receive further food safety information. However, it only covers 100% of the broiler, duck, pork and shrimp products of Thailand operations.
Product Recalls & Market Bans
Product Recall Systems
The company mentions a product recall system in place and considers consumer feedback. However, it does not provide any further information. It reported zero product recall incidents that would affect public health in FY2022.
Source(s): Our Management Approach Webpage, page 1; Sustainability Report 2022, page 23
The company did not disclose information on market bans during the reporting period, and none were detected in the media screen.
Assessment of a Company's Sustainability Governance
The company's board is formally mandated to oversee sustainability issues. In addition, the company has conducted a materiality assessment and publicly disclosed the outcomes. The materiality assessment reports that governance and risk management, food security, innovation and technology, human rights and labour practices, organisational culture and management, employee well-being, health and safety, climate change management, water management and biodiversity and ecosystems are some of the material topics with highest significance to stakeholders. The board of directors have considered and approved material topics. The company needs to disclose board-level expertise in sustainability, innovation or food safety for the reporting period.
Incentives & Policy Engagement
The company mentions that sustainability performance indicators such as Dow Jones Sustainability Indices, FTSE4Good Index, MSCI ESG, CDP Scores (Carbon Disclosure Project) and survey projects on corporate governance of listed companies are used to evaluate the CEO's remuneration. However, the company does not disclose the % of compensation linked to climate-related performance. The company has partnered with multiple international and national organisations on low pollution, biodiversity preservation, zero antibiotics use and GHG emissions reduction. The company also provides its memberships with trade associations, alliances and coalitions. However, it does not discuss aligning its policy-engagement strategy to restrict global temperature rise to 1.5⁰C.
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
Innovation & Benchmarking
The company discusses the importance of innovation in its business strategy due to increasing global food demand, environmental changes and consumer behaviour. It discloses significant product and technology innovations in feed production, alternative protein, and farm business. Additionally, it trains its employees on innovation through seminars and training programs. The company also measures sustainability performance from benchmarking organisations such as Dow Jones Sustainability Indices to determine the CEO variable remuneration. However, the company does not benchmark itself against its peers in sustainability performance.
Diversification of Products to Alternative Protein Sources
Existing product portfolio
The company acknowledges that consumers are now more selective in their consumption. Therefore, they expect that a food business will manufacture delicious and healthy products which are friendly to the environment and sustainable. It has increased exposure to plant-based alternatives to fulfil the shift in consumer trends. It has set a target to derive 40% of revenue from low-carbon, 'green' products (including chicken eggs, fresh chicken meat and fresh pork) and reports that in 2022, 37% of its revenue was derived from this segment. However, it is not explicitly publicly disclosed whether this segment includes alternative protein products. In 2021, the company announced its ambition for "Meat Zero" to be among the world's top three alternative meat brands in three to five years. However, it still needs to set a formal timebound target to diversify protein sources.
Source(s): Annual Report 2022, page 28, 39, 40; Press release: MEAT ZERO kick off; Sustainability Report 2022, page 14, 28, 83
Investing for future growth
The company has a brand, "Meat Zero", that offers plant-based crispy pork and chicken nuggets. Further, it states that it collaborated with the leading plant-based meat companies to invent and develop the innovative technology "PLANT-TEC". This technology produces alternative protein products from plants that taste like meat, catering to health-conscious consumers who wish to reduce their meat consumption. In 2022, the company continued its investment in a joint venture, Well Well Invest S.A., plant-based businesses. The company has a project in partnership with a start-up to establish a proof-of-concept for plant-based meat and alternative protein products. The scope of collaboration has since been expanded in 2023 to allow for more opportunities to create solutions and determine the most effective technology options.
2023 Risk Score:
Poultry and eggs, Pork, Aquaculture
Company Feedback Given:
31st October 2023
2023/24 Charoen Pokphand Foods PCL Assessment
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2023/24 Full Data
2023/24 Full Report
Coller FAIRR Protein Producer Index