Charoen Pokphand Foods Plc who has been embraced on long-term sustainable with passions for excellence and heading towards “kitchen of the world” has been selected as member of Dow Jones Sustainability Indices DJSI under Emerging Markets category in 2016 in food industry group for the 2nd consecutive year.
Mr. Wuthichai Sithipreedanant, Senior Vice President for Corporate Social Responsibility and Sustainable Development of Charoen Pokphand Foods Plc, said following the appraisal by RobeccoSam, CPF has been nominated again for the second time. DJSI, is one of the most highly regarded global sustainability indices, appraises corporate in key areas namely economic dimension, social dimension and environmental dimension. The nomination is pride of the country also this bolsters investors and stake holder confidence where the corporation is managed based on social responsibility, sound environment and good corporate government which leads to long-term sustainable businesses.
“CPF is ranked as one of the fourth companies from 33 companies in Food Products. The company earns score of 75 points up from 65 points in the previous evaluation. The scores have been improved in all areas and higher than the food industry average. It has achieved outstanding score above 80 points in 12 areas where it has achieved an exemplar score above 90 points in risk management, raw material procurement, social investment and human resource management. CPF earns 100 percent score in ecology management and climate change. CPF also earns excellent scores in human resource management, efficient ecology management whereas some international eminence corporations are unable to do well in these areas.
CPF has outlined business strategies and social responsibilities towards sustainable business under the three pillars: “Food Security, Self-Sufficient Society, Balance of Nature”. To materialize its objectives, It has put forwarded 6 actions in place.
“Food security” comprises of 1. Up lift quality and safety of the entire food chain through develop wholesome and healthy food based on Healthy Nutrition policy to serve the well being different market segments for example adult, kid and fresh meat with high food safety standard while reducing customer complains 2. Accessibility to food for 150,000 youth who reside in remote areas or area surrounded by production facilities or farms though “Raising Layer for Student’s Lunch Project” where there will be additional 50 schools to join the program. Further than that, CPF has
added school lunch program namely “CPF Growing Happiness, Growing Futures Projects” in 69 schools, putting the total project number to cover more than 600 schools countrywide.
“Self-Sufficient Society” comprises of 3. Growth with business alliances. The plan aims at managing sustainability on critical suppliers and non-critical suppliers. In 2016, CPF has submitted sustainable sourcing policy and supplier guiding principle into consideration to over 7,500 non-critical suppliers and suppliers in 5 major segments of raw materials namely fishmeal, corn, soybean, cassava and palm oil.
In addition to improve life quality of fishery workers, women and the youth via Songkhla Fishermen’s Life Enhancement Centre (FLEC). Assist over 25,000 fishery workers who are highly vulnerable. The assistances include vocational training, building classrooms for pre-school foreign students. Moreover, the company has supported corn growers and provided assistance via “Self-Sufficient Farmers, Sustainable Corn” project to reduce production cost, improve yield/area. Last but not least, CPF has given due attention to quality of life of people in rural communities. It has taken up projects to improve quality of life and income of rural inhabitants living nearby production facilities and farms.
“Balance of Nature” comprises of 5. Reducing Environmental Footprints is conceived to alleviate adverse environmental impacts through lean operation and efficient ecological management. CPF sets sight to reduce energy by 9%, keep water consumption down 10%, waste 7%, green house gas 4% per tonne of finished products. 6. Preserve biodiversity through “CPF Grow-Share-Protect Mangrove Forestation” project to conserve and rehabilitate mangrove forest in five provinces, covering the area over 2,600 rai. Also, CPF opened “Grow-Share-Protect Mangrove Forestation” learning center at Pak Nam Prasae, Rayong last June. The company plans to open a new learning centre in Chumporn by the end of 2016.
Besides CPF has Rak Ni-Ves project to add lush green vegetation around farms and CPF facilities. The company provides training for workers to create awareness. In addition, it has developed data collection and training system to measure growth of the vegetation, CO2 collection and sustainable management.
“In taking part in DJSI evaluation each year, we see opportunities in developing and improving key areas which are important for businesses. The feedback has been taken into account for improving management and supporting sustainable business growth,” Mr. Wuthichai concluded./