Thaifoods Group PCL

The company does not have a science-based emission reduction target.

The company is a vertically integrated food producer specialising in the production of chicken and swine. It has operations in both Thailand and Vietnam. It discusses a project to turn clean energy from solar energy into electricity by installing Solar Floating, Solar Roof, and Solar Car Park projects in factory areas. These projects are expected to help reduce pollution and the greenhouse gas emissions that arise from the company's business operations. However, it has not set any quantitative energy or Scope 1 and 2 targets. It has installed solar panels in five processing areas. Therefore, the scope is considered to be limited to specific geographies. It does not disclose whether it has set targets to reduce GHG emissions from Scope 3. In addition to sourcing feed ingredients, such as corn, soybean meal, rice bran solvent and other feed additives, it uses contract farming systems to raise poultry and swine. This should all be reflected in its Scope 3 emissions target, yet such data still needs to be provided.

The company does not disclose whether it is working with suppliers to reduce emissions from agriculture.

The company discloses that it is doing research and development in the fields of human food and animal feed. However, it does not disclose whether it engages in innovative projects to reduce or mitigate feed-farming emissions.

The company does not engage in innovative projects to reduce or mitigate emissions from animal farming

The company discloses the combined Scope 1 and 2 emissions of three facilities. Therefore, the geographic scope is considered limited to certain geographies.

The company does not disclose any information on GHG emissions from animal farming. The company does not disclose any information on GHG emissions from feed production. The company does not disclose any information on GHG emissions from land use change.

The company does not disclose to CDP climate change questionnaire. The company does not disclose the data on GHG inventory is audited by a third party.

The company discloses combined Scope 1 and Scope 2 emissions for three facilities this year. However, it did not disclose GHG emission performance last year. Therefore, a comparison cannot be made.

The company discloses that in 2022, it conducted a Carbon Footprint for Organization assessment (CFO), which will report information on greenhouse gas emissions and removals produced by the company's operations in both production and service, as well as how to successfully cut greenhouse gas emissions by incorporating the calculated emissions into the creation of management standards. However, it does not conduct a climate-related scenario analysis.

The company mentions that it may be exposed to risks from climate change, such as weather conditions, which can affect the price fluctuations of feed ingredients. However, it does not disclose how it intends to mitigate or adapt to the projected impact of physical risks on feed ingredients' availability and price volatility.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company sources soy as a raw material from the United States, Argentina, Brazil, and Paraguay to produce feed. Soy production in Latin America is known to be associated with significant risks of deforestation. However, the company does not provide information on how it manages deforestation risks linked to animal feed. The company discloses its soy suppliers as Cargill Siam Ltd. and ADM Asia-Pacific Trading Pte. Ltd. Neither is considered deforestation-free.

The company does not disclose having a deforestation/conversion-free target for soy.

The company does not report progress against its commitment. Nor did it responded to the CDP Forest Questionnaire in 2022.

Thaifoods states that it has traceability in raw animal feed materials but does not provide further details or disclose information on how it engages soy suppliers on deforestation risks. The company has divided traceability into two types and developed an annual testing plan to ensure it can achieve raw material traceability. The first type of traceability is forward traceability, which begins with raw material data and continues through the production process in each step until the finished product is delivered to the customer. The second is backward traceability, where customers can track data of the finished goods from the production process to the raw material data. The company also states that it demands an evaluation of raw material sources to verify that they are supplied in a socially and ecologically responsible manner.

The company discloses that it undertakes regular monitoring and evaluations of suppliers to ensure compliance with its code of conduct, policies, rules, and regulations. One of the criteria which suppliers are evaluated annually is environmental impact. However, it is unclear if this includes monitoring deforestation. Thaifoods states that it has traceability of the raw materials used in its animal feed. However, the company does not disclose the proportion of traceable soy in its country of origin.

The company states that it is continuing research and development into animal feed. However, the company does not discuss practices to move towards sustainable feed sources or projects to promote biodiversity and/or soil health in feed farming.

The company considers water-related risk a material topic and has established guidelines for proper water management. Water consumption data is compiled for analysis and is updated regularly. However, the company does not discuss conducting a risk assessment for its processing facilities or whether it only operates in areas of low-water stress. It acknowledges the importance of water for business operations and is conducting a project to reduce water consumption in the organization. The company disclosed its water consumption in 2022.

The company aims to set targets for water consumption per kilogram of product. However, the company has not yet, disclosed quantitative, time-bound water reduction targets.

The company does not disclose withdrawals or consumption by source. Thaifood's water consumption reduced between 2021 and 2022.

The company does not disclose information relating to water scarcity risks in feed farming. It states that it provides support for the most efficient use of water in agricultural and industrial production systems. However, it does not provide further detail regarding this support.

The company does not disclose feed water intensity, or the proportion of feed sourced from water stresses areas. Further, the company does not provide evidence that it is investing in sustainable feed production from a water use perspective.

The company operates production facilities across Thailand and Vietnam. However, the company does not disclose the proportion of animal protein commodities produced and/or sourced in water-stressed areas. Further, Thaifoods does not disclose information relating to water scarcity risks in animal farming.

The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company states that it has not received complaints from environmental authorities relating environmental matters. As such, it can be assumed that the company did not have any incidences of non-compliance with water quality permits, standards, and regulations in the last reporting year. It discloses a goal for all water quality to meet legal criteria. However, the company does not disclose a target to improve water quality in terms of the metrics recommended by the World Bank.

The company has a wastewater treatment system. However, it does not disclose the volume of wastewater discharged.

The company converts sludge from wastewater treatment plants to fertiliser. It also has established the 'Meat and Bones Project', which converts heads, bones and intestine waste into animal feed. Thaifoods has constructed a biogas system in a pig farm to generate biogas, which is generated from waste from livestock farms, such as manure and sewage.

The company states that it is focused on minimising the environmental impact of its production processes. The company provides training on environmental stewardship for all personnel and says it attaches importance to promoting the efficient use of resources. However, it does not disclose information relating to nutrient management in feed farming. Thaifoods states that it promotes the conservation of resources, including groundwater quality and soil fertility. However, it does not disclose the guidance, support and/or incentives it provides.

The company discloses that it encourages suppliers to reduce the use of agricultural chemicals and does not support the use of agricultural chemicals that the government has identified as prohibited substances. However, it is unclear from the current disclosure if this applies to pesticides.

The company has constructed a biogas system in its pig farm to generate biogas from manure.

The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.

The company holds discussions with surrounding communities to reduce risks that may arise for the company and community and to solve common water problems. One company branch is a member of the Water Consumers Club of Prachinburi province, which campaigns for the agriculture industry to realise the importance of water resource problems, such as droughts, floods, and water pollution.

The company commits to a transparent and formal antibiotics policy, administering antibiotics solely for therapeutic purposes under veterinary supervision and prohibiting their use for prevention or growth promotion across all operations. It also employs strategic housing management and biosecurity measures, notably targeting the prevention of African Swine Fever.

The company does not disclose the quantity of antibiotics used.

The company emphasises animal welfare in its operations, overseen by expert veterinarians and specialists in animal husbandry. It mentions adherence to animal welfare standards but concentrates mainly on sound business practices and regulatory compliance. However, it does not explicitly commit to the Five Freedoms or provide a similar statement highlighting the importance of animal welfare.

The company acknowledges the link between mortality rate during transportation and delivery distance, indicating a focus on a specific radius to reduce both mortality and transportation costs. However, it does not provide details on the time radius to the slaughterhouse or particular measures for ensuring animal health during transportation.

The company does not specify if the certifications awarded in Thailand apply universally or are limited to select farms. Additionally, multiple certifications in Vietnam suggest jurisdiction-bound applicability. The company provides limited information, suggesting that its chicken and swine farms, as well as hatcheries in Thailand, hold Good Agricultural Practice (GAP) Certificates from the Department of Livestock Development. The company holds various certificates for different geographical regions and protein scopes.

The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.

The company does not disclose information on its performance regarding key material risks.

The company commits in writing to respect human rights. However, the company does not explicitly mention that it adheres to internationally recognised standards such as those articulated by the International Bill of Human Rights and the core ILO conventions.

The company discloses that human resources routinely oversee, monitor, and audit human rights violations. However, the company does not discuss any approach, such as due diligence, conducted by the company to assess and monitor actual and potential human rights risks. The company states it assesses human rights risks within its supply chain and provides training to its suppliers' employees. However, the company does not explicitly state how it mitigates risk, provides remediation within its operations, and does not disclose sufficient detail regarding assessments or training schemes.

The company does not conduct human rights due diligence to identify human rights violations or risks.

The company commits in writing to prohibit discrimination, harassment, child labour and forced labour and expects suppliers to do the same. The company's human resources department conducts human rights audits. However, it is unclear which of the selected policy areas these audits cover. The company does not disclose promoting fair wages or providing sick pay to its employees.

The company does not mention conducting human rights audits in its supply chain. The company has a whistleblowing system accessible to all stakeholders. However, complaints cannot be made anonymously, and it does not appear that the whistleblowing mechanisms were designed in consultation with stakeholders. The company's number of grievances in the reporting year has yet to be disclosed.

Whilst the company discusses the importance of the health and safety of its employees, its facilities do not appear to be certified by a regulatory standards organisation. The company reports that it has a safety committee which assesses health and safety risks throughout its operation and carries out occupational safety training for staff. However, it does not discuss the percentage of its facilities that have a health and safety committee with worker representatives.

The company reports that the number of injuries recorded decreased from 32 in 2021 to 12 in 2022. Further, its fatality rate has remained zero from 2019 to 2022. The company discloses that 2,044 male and 2,071 female employees resigned during the reporting period. However, this is not the complete turnover rate, and it does not specify the turnover rates by seniority level or business segment.

The company recognises its employee's right to form a group, association or organisation. However, the company do not explicitly state that employees have the right to freedom of association. It states that no employees are members of any labour union. Moreover, the company does not require or expect suppliers to support freedom of association and collective bargaining rights.

The company discloses the workforce distribution based on age, gender and workplace. However, the company does not reveal the workforce distribution across existing contractual agreements or the percentage covered by collective bargaining agreements.

The company is certified by the BRC and GAP, which are GFSI-recognised certifications, but it does not disclose the number of certified facilities. It reports that its suppliers must deliver quality products and services with the food safety, legitimacy, and credibility of a generally recognised brand in accordance with the company's quality policy. However, it is not clear whether the company expects or requires suppliers to have GFSI certification.

The company does not report the number or frequency of food safety audits during the reporting year. Further, it does not specify associated corrective action rates. It does not disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company does not discuss its product recall system but discloses zero significant product complaints in customer satisfaction surveys covering food safety, service and quality. However, it is not evident that it has had zero product recalls in the reporting period. No recall incidents were detected in the media screening.

The company does not disclose information about market bans; none were detected on the media screen.

The company discloses that a sustainable development committee has been established by the board of directors to review corporate governance policies, strategies, and goals in relation to the environment, society, corporate governance and sustainable development guidelines of the company. In addition, the company has engaged with stakeholders and published the most critical issues identified through this engagement. Some of the critical issues identified include environmental management, effective utilisation of resources, business innovation, responsible sourcing of raw materials, health and safety in a working environment and other material topics. The company also reports holding board-level expertise in innovation and product development but not in sustainability or food safety.

The company has not disclosed executive monetary remunerations linked with climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues, a comprehensive list of trade association memberships or if it aligns any policy-engagement activities with the goal of restricting global temperature rise to 1.5C.

The company collaborates with various national organisations to build on the research and development of alternative raw materials and the livestock industry. However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.

The company acknowledges changing consumer preferences for environmentally friendly products and increasing plant protein intake. Alternative protein consumption is recognised as an 'emerging risk'. However, it has not yet disclosed a timebound target to diversify protein sources.

The company discloses that it promotes research in alternative protein sources, such as plant-based protein and developing "clean meat". Furthermore, in 2020, it was announced that it signed a memorandum of understanding with Thailand's Institute of Scientific and Technological Research (TISTR) to support research and development for plant-based proteins. However, there has been no update since then and no further details. It is unclear if the company intends to launch and market alternative protein products.