Charoen Pokphand Foods PCL

The company has an SBTi-verified target to achieve Net Zero by 2050, based on a 2020 baseline. It has set near- and long-term targets for Scope 1, 2, and 3 emissions, including non-FLAG and FLAG categories, aligned with a 1.5°C scenario. However, the company has not publicly disclosed a specific methane emission reduction target or its development status.

The company aims for Net-Zero emissions across its value chain by 2050, using 2020 as a base year. It targets a 42% reduction in absolute Scope 1 and 2 emissions, and Scope 3 emissions by 2030. By 2050, it plans a 90% reduction in these emissions. Additionally, it seeks a 30.3% reduction in Scope 1 and 3 FLAG emissions by 2030, and a 72% reduction by 2050. These targets align with a 1.5°C climate scenario.

The company has implemented a Sustainable Sourcing Policy and Supplier Guiding Principle to enhance resource management and reduce greenhouse gas emissions. In its climate action strategy, the company focuses on stakeholder engagement along the value chain to reduce Scope 3 emissions, which constituted 92.4% of total emissions for the reporting period. To achieve Net Zero, the company has initiated measures to lower emissions across its operations and supply chain. In 2023, it launched the SME Excellence (SMEx) project: Save Cost - Save the World, aimed at increasing the competitiveness of Small- and Medium-sized Enterprises (SMEs) and fostering sustainable growth. The first phase involved 10 SMEs undertaking 16 projects to improve efficiency using Lean Six Sigma practices, alongside learning advanced food production technologies. The company offered consultancy to enhance production processes in efficiency, cost reduction, energy and environmental management, and digitisation, with cost savings reinvested to reduce greenhouse gas emissions. It plans to expand this initiative to include 50 additional suppliers in 2024.

The company reports initiatives to achieve Net Zero by reducing emissions in its operations and value chain. These initiatives include sourcing raw materials from deforestation-free areas and using smart technologies in production. In relation to maize farming in Thailand, the company has developed the 'For Farm' application to promote modern farming knowledge and sustainable practices among feed farmers. This app focuses on efficient fertiliser and agrochemical use, aiming to improve soil quality, reduce greenhouse gases, and aid climate change adaptation. By 2025, the company strives for 100% maize traceability to plantation areas worldwide, facilitated by the Maize Traceability System and the F. Farm application.

The company is working to reduce farming emissions by using solar cells and biogas energy derived from manure. It is also supporting startups through technical consultation and collaborations with external partners to create a 100% renewable energy system involving ammonia from chicken manure, biogas fermentation, and an energy management system for smart farming. Alongside these efforts, the company is developing animal feed for swine and layers that reduces excess nitrogen in manure by balancing protein sources and using age-specific enzymes for optimised digestion. This formulation also lowers greenhouse gas emissions from animal manure. In 2023, it achieved a 20-30% reduction in excess nitrogen from swine manure and 12-13% from layer manure, cutting emissions by up to 74,700 tCO2e.

The company reports Scope 1, 2, and 3 emissions of 262,261, 2,392,092, and 11,376,503 tons of CO2e, respectively. However, its Scope 3 emissions data is limited to operations in Thailand.

The company reports biogenic methane emissions of 526,952 tons of CO2e. For the fiscal year 2023, it states that Scope 3 emissions from the purchase of goods and services in Thailand amounted to 8,041,998 tons of CO2e, including materials for animal feed such as corn, wheat, soybean, fishmeal, and rice. However, it is encouraged to provide specific emission data for these feed materials. Additionally, the company does not disclose greenhouse gas emissions related to land-use change.

The company completed the CDP Climate Change questionnaire in 2023. Its environmental performance, across operations and activities in Thailand and other countries such as Laos, Malaysia, the Philippines, India, Cambodia, Vietnam, and Türkiye, was assured by independent third-party provider LRQA (Thailand) Limited.

Between FY2022 and FY2023, the company's Scope 1 emissions decreased by 9% from 288,103 tCO2e to 262,261 tCO2e, and Scope 2 (market-based) emissions fell by 0.4% from 1,197,647 tCO2e to 1,193,160 tCO2e. The company does not report Scope 3 emissions for FY2022, rendering its GHG inventory incomplete. The company is developing environmentally friendly feed for swine and layers, reducing excess nitrogen in manure by an estimated 20-30% for swine and 12-13% for layers, contributing to a greenhouse gas emission reduction of 74,700 tons of CO2e. Emissions for Scope 1 and 2 include operations in Thailand, Overseas1, and Overseas2, with Scope 3 emissions amounting to 11,376,503 tCO2e in Thailand alone.

The company has conducted a climate-related scenario analysis using IEA 2DS, 450, and APS transition scenarios, as well as RCP 2.6 and RCP 8.5 physical climate scenarios. This analysis was applied across all operations, with discussions on the potential impact on key resources within its Feed, Farm, and Food operations.

The company recognises several physical risks related to climate change, though mitigation details are not always explicit. It acknowledges that a global temperature rise of 1.5 degrees could increase the frequency and severity of natural disasters, impacting raw material availability and quality, leading to higher costs and reduced production capacity. To manage physical risks, the company mentions conducting climate and water risk assessments and developing management plans but does not specifically address the impact on feed ingredient availability and price volatility. Rising temperatures are also noted as increasing energy costs for livestock cooling systems, with mitigation through energy efficiency improvements and renewable energy sourcing, such as biogas and Solar PV Rooftops. The company mentions additional energy-focused initiatives to lower costs, enhance efficiency, and reduce emissions, estimating savings of approximately 5,638,170,000 Thai Baht. However, it does not explicitly address increased energy costs in its disclosures. The company acknowledges the increased risk of disease outbreaks due to higher temperatures, affecting livestock and aquaculture well-being. Mitigation measures include energy-efficient ventilation, renewable energy use, and maintaining high biosecurity standards. However, it does not provide explicit information regarding rising veterinary and medicine costs associated with these climate impacts. In terms of regulatory risks, the company acknowledges potential future carbon pricing, carbon taxes, and other climate regulations as significant risks to its operations. It discloses the use of renewable technologies like biomass, biogas, and solar PV to reduce emissions and mitigate these transition risks. The company also recognises that extreme weather events such as cyclones, droughts, and floods could have financial implications, including damage to assets, infrastructure disruptions, and reduced water availability. However, it does not disclose how many financially significant events occurred due to climate-related risks during the reporting period.

In its TCFD report, the company outlines the financial impacts of climate-related risks and opportunities identified through its scenario analysis. It plans to establish a decarbonisation strategy with an SBTI-aligned GHG reduction target and implement reduction measures. In its 2023 CDP Climate response, the company indicates that its financial planning process evaluates its future financial position and allocates resources for both short-term and long-term goals. This suggests that capital expenditures align with GHG targets; however, the company is encouraged to confirm this commitment explicitly in future disclosures. The company has not reported any costs associated with climate-related risks.

The company states that its primary raw materials for animal feed production include corn, soybean meal, fish meal, rice bran, and various vitamins and minerals, with soy accounting for 11-20% of its procurement spend. It aims to source 100% of its key raw materials from deforestation-free areas, with 35.4% already meeting this criterion, including maize, soy, palm oil, and cassava, in operations spanning Thailand, Cambodia, the Philippines, Malaysia, Laos, Vietnam, and India. Furthermore, 0.2% of the company's soy is certified by the Round Table on Responsible Soy Association (RTRS), and 24.7% is certified by the U.S. Soybean Sustainability Assurance Protocol (U.S. SSAP). It conducts annual risk assessments across its value chain, addressing a range of risks, including ESG and forest-related issues, and their financial, strategic, and business impacts. This includes a materiality assessment covering key topics like ecosystems and biodiversity, climate resilience, water, and circular economy. However, it does not disclose high-risk locations identified.

The company aims to source 100% of key raw materials, including maize, soy, palm oil, and cassava, from deforestation-free areas by 2025, with a specific 2020 cut-off date for its soy commitment.

The company's Biodiversity and Zero-Deforestation commitment applies to its entire supply chain, including direct operations, subsidiaries, and all suppliers, covering 100% of the soy it procures and consumes. This commitment encompasses all sourcing regions.

The company intends to source 100% of its key raw materials from deforestation-free areas, with 35.4% currently meeting this standard. For soy, 0.2% is certified by the Round Table on Responsible Soy Association (RTRS) and 24.7% by the U.S. Soybean Sustainability Assurance Protocol (U.S. SSAP). It has not disclosed whether its progress data is verified by a third party. The company completed the CDP Forests questionnaire in 2023.

The company has conducted a biodiversity risk assessment by mapping its own and its suppliers' operational sites against critical biodiversity areas of international or national significance, including both terrestrial and marine ecosystems. It ensures that commodities such as soy are not sourced from regions at risk of deforestation. Each year, the company participates in supplier capacity-building events to share knowledge and skills to help suppliers adapt to the changing global climate. Additionally, it is developing or distributing a supply chain mapping tool and collaborates with direct suppliers to improve the efficiency of its traceability system.

The company conducts supplier audits to ensure compliance and has implemented a traceability system using satellite imaging to monitor deforestation within its supply chain, encompassing both direct operations and suppliers. This system employs geospatial monitoring tools, along with second-party and third-party verification. The company assesses non-compliance severity based on factors like the total area deforested, the irreversibility of impacts, and their effects on natural ecosystems. Responses range from suspension to exclusion of suppliers, with time-bound targets and corrective guidance provided. Suppliers failing to comply with action plans will be excluded. Currently, 48% of the company's raw materials are traceable to plantation areas, and 51.9% to processing facilities. It has mapped its tier-1 value chain, ensuring 100% of soy is traceable to feed mills, though this excludes tier-2 suppliers and beyond.

The company provides details on its sustainable maize production project, which includes the development of the 'F. Farm' application. This platform allows farmers to share information on sustainable practices, such as fertiliser and agrochemical use, water stewardship, and soil quality improvement. Additionally, the company has implemented a traceability system to prevent maize production in deforested areas. Through this project, it has achieved 100% traceability of maize in Thai operations and 24.5% traceability in overseas operations. In 2021, the company discussed research in partnership with a university on using insect meal as a protein substitute in animal feed but has not provided further updates on this project.

The company claims to hold BAP and ASC certifications for its aquaculture operations in Thailand and Vietnam, but does not provide this information for its operations in China, India, the Philippines, Malaysia, Sri Lanka, Poland, and the US, resulting in incomplete certification disclosure. Additionally, it does not specify the farm or site locations for the certified operations in Thailand and Vietnam.

The company has not provided information on the percentage composition of feed ingredients used in aquaculture, nor on its dependency on forage fish for fishmeal and fish oil. It states that it purchases fishmeal from factories certified by Marin Trust standards, according to the FAO's Code of Conduct for Responsible Fisheries, but the percentage of certified fishmeal used remains unclear. Additionally, the company discloses that 0.2% of soy is RTRS certified, though the percentage used in aquaculture feed is unspecified. Furthermore, the company does not disclose forage fish dependency ratios for fishmeal and fish oil by operating region.

The company does not disclose information about the sourcing of fishmeal and fish oil used in its feed basket, nor does it specify whether marine and soy ingredients are 100% certified. Furthermore, the company does not provide information on improvements in feed conversion efficiency or its reliance on foraged fish during the reporting period.

The company does not disclose having conducted a risk assessment on how reduced feed availability might impact production. It also lacks a disclosed strategy to increase the use of seafood trimmings or alternative feed ingredients.

The company does not disclose the percentage of R&D spending allocated to novel ingredients development or the average EPA and DHA content of its salmon. Additionally, it has not set or reported progress on specific targets for increasing alternative feed ingredients based on risk assessment.

The company does not disclose data on escapes, nor does it disclose the financial cost of all escape events or provide a discussion on escapement prevention. Finally, the company does not disclose a time-bound target for zero escapes.

The company has conducted a Biodiversity Impact Assessment to evaluate biodiversity impacts and natural resource dependencies within its supply chain. This assessment identifies biodiversity risks and informs impact mitigation strategies. The company engages with employees, local communities, and other stakeholders through activities like tree planting, check dam construction, forest weeding, and youth camps. Notably, the 'Conserve Ecosystem (Rak Ni-ves) Project' in the Pasak Watershed addresses strategic watershed forest challenges. It is also involved in mangrove restoration projects in Thailand. However, the company has not disclosed its strategy or a timeline for eliminating human-wildlife conflict.

The company does not disclose a management plan in the event of algal blooms.

The company has implemented a water risk assessment framework across all units and its supply chain, utilising the Aqueduct Water Risk Atlas tool from the World Resources Institute. It categorises operational units into low, medium, and high risk based on water withdrawal volumes and baseline water stress levels, focusing on high-risk units for financial or strategic impact evaluations. In 2022, 114 out of over 17,000 operation sites were identified as having high water risk levels. Additionally, 57.6% of its water withdrawals came from water-stressed areas. The company provides information on the locations of facilities at risk of water scarcity, categorised by region and river basin, such as Chao Phraya and Mekong. In FY2023, total water consumption was reported at 106.32 million m3, with 41.60 million m3 sourced from water-stressed areas. The company is committed to increasing internal water efficiency and engaging with stakeholders to maintain water sources. In 2023, the company recycled and reused 19.5% of total water withdrawals by investing in water management technologies, including Biofloc and ultrafiltration, reverse osmosis filtration, and adopting air chillers over water chillers to reduce reliance on external sources.

The company has not disclosed any time-bound water reduction target for its facilities for the reporting year. It has achieved its goal of reducing water withdrawal across all direct operations by 20% per unit of revenue by 2030, using 2020 as the baseline year. Additionally, in its Thailand operations, the company aims to cut water withdrawal by 30% per production unit by 2025, relative to a 2015 baseline. As of 2023, it reports a performance level of 50.4%, equating to 168% progress against this target. The company is currently setting a new target encompassing both Thai and overseas operations.

The company reports total water withdrawals of 242.98 million m³ and consumption of 106.32 million m³ for 2023, with the following sources: 3.7% rainwater, 45.1% seawater, 29.1% surface water, 5.2% tap water, and 16.9% groundwater. It withdrew 57.6% of its water from water-stressed areas. There is a projected increase of 5% in CAPEX and 1.5% in OPEX for water-related trends. Investments have been made in advanced technology, high-efficiency water recycling systems, a wastewater treatment plant, and environmentally friendly machinery. These efforts align with its circular economy model. The company also focuses on water assessment and employee training. Water-related data is audited by Lloyd Register’s Quality Assurance Ltd. (LRQA), and the company participated in the CDP Water questionnaire in 2023. Total water withdrawal increased from 232.74 million m³ in 2022 to 242.98 million m³ in 2023, while consumption slightly decreased from 106.50 million m³ to 106.32 million m³.

The company is a vertically integrated processor, engaging in activities from producing animal feed to breeding, farming, and processing. It sources raw materials for feed production rather than growing its own feed. Under its Sustainable Sourcing Policy and Supplier Guiding Principle, the company requires suppliers to conduct water risk and impact assessments and develop water management plans. It aims to have all tier-1 suppliers identified as having high water impact establish management plans by 2030, although it does not require suppliers to set water use reduction targets. The company is progressing towards this goal by focusing on policy development, raising internal awareness, improving water efficiency, and monitoring results. Suppliers are encouraged to manage water efficiently. In 2023, the company updated its self-assessment form for critical suppliers to include water management, promoting water stewardship. Through the F. Farm application, maize suppliers in Thailand are informed about sustainable farming techniques, enhancing water stewardship. However, the company has not established a partnership with a third party to contribute to its sourcing or farming strategy regarding water use in feed.

In its 2023 CDP Water Security response, the company reports a water withdrawal intensity of 838.03 m3/million Baht for maize/corn production, but it does not provide water intensity data for other feed raw materials, such as soybean meal, limiting the scope of this disclosure. The company produces 1-10% of maize/corn in areas experiencing water stress and acknowledges the potential impact of limited water availability, irregular precipitation patterns, increased competition for water resources, and inadequate irrigation practices on crop yield and quality. To address water stress and promote sustainable maize/corn production, the company employs strategies such as efficient irrigation technologies, rainwater harvesting, and soil moisture management. However, it is encouraged to clarify its investment in these practices and their scale of adoption. Additionally, the company has developed the For Farm application to assist Thai farmers in adopting sustainable farming techniques, including water stewardship.

The company reports that 1-10% of fish and seafood from aquaculture is produced in water-stressed areas. This percentage also applies to poultry and hog production, although it is unclear if these figures pertain to them separately or combined. The company should disaggregate and provide specific figures for each commodity. Indirect water use by the company includes upstream feed plantations and contract farmers' animal raising. It has implemented water-saving technology in animal farming. The company's sustainable sourcing policy requires that agriculture business partners, if requested, participate in or initiate climate-resilient agriculture projects related to water security and conduct water risk assessments with management plans. The company aims for all tier-1 suppliers with high water impact to develop water management plans by 2030, though this target is still in progress. However, there is no requirement for animal farms to have water use reduction targets, nor has the company set such targets for animal farming. The company prioritises water stewardship throughout its value chain, promoting efficient water use based on each country's context. This includes engaging with farmers, communities, governments, and stakeholders to develop projects enhancing water access, supporting Sustainable Development Goals. In 2023, the company updated its self-assessment form for critical suppliers to include water management components, thereby encouraging a shared focus on water stewardship. It is working to help all tier-1 suppliers with significant water impacts to develop water management plans by 2030, with efforts spanning policy development, internal awareness, efficiency improvements, and result monitoring.

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

The company reports no fines, enforcement orders, or penalties for water-related regulatory violations in FY2023. It conducts water-related risk assessments using the WRI Aqueduct Water Risk Atlas, which include water quality assessments at the basin or catchment level for its direct operations. This has identified 114 of over 17,000 operational sites as having high water risk levels. However, the company has not specified which sites or regions have medium or high water stress concerning water quality. The company has not established specific targets for water pollution or water quality, nor has it provided any information on setting a target related to water volume.

The company discloses wastewater discharge quality by region, providing measurements in Biological Oxygen Demand (BOD) and nitrogen content in mg/L. The total reported discharge volume is 137.62 million cubic metres, with disaggregation into freshwater and other water bodies. This data is subject to third-party auditing by LRQA (Thailand), ensuring transparency and accountability. In 2023, the company actively participated in and responded to the CDP Water questionnaire.

The company uses sludge from wastewater treatment ponds to produce biogas, generating electricity for some facilities. Wastewater from the poultry business, including blood and fat, is also converted into bioenergy for its production processes. The company reports an increase in Biochemical Oxygen Demand (BOD) from 2,190 tonnes in 2022 to 3,750 tonnes in 2023, while nitrogen discharge decreased from 960 tonnes to 760 tonnes over the same period. Despite the reduction in nitrogen discharge, the overall treatment performance did not meet criteria for additional points. The volume of wastewater discharged increased from 126.24 million cubic metres in 2022 to 137.62 million cubic metres in 2023.

The company instructs suppliers to manage resources efficiently by reducing greenhouse gas emissions, and energy and water consumption, while adhering to environmental pollution and wastewater standards. This includes reducing the use of chemical insecticides and treating wastewater prior to discharge. However, the company does not specifically address nutrient management nor does it disclose whether it requires suppliers to have a nutrient management plan or produce feed internally under such a plan. The company supports its feed suppliers by promoting farming knowledge and good agricultural practices aligned with the Thai Agricultural Standard TAS4402-2010 and Good Agricultural Practices for Maize. Training covers soil nutrient analysis, post-harvest management, and productivity enhancement techniques. An app has been developed for feed farmers, providing information on good practices and efficient methods for fertiliser and agrochemical use. The company has not disclosed any partnerships with third parties to inform its sourcing or farming strategy, especially regarding nutrient pollution or fertiliser use.

The company has launched the 'Self-Sufficient Farmers, Sustainable Corn' Project, which trains farmers in soil nutrient analysis, post-harvest management, increasing productivity, and reducing chemical fertiliser use. This initiative also aims to minimise environmental impact by promoting effective agricultural waste management and preventing burning during the post-harvest phase. The goal is to involve over 11,150 small farmers and cover 350,000 rai (56,000 hectares) of plantation areas by 2023. However, the company does not disclose information about pesticide use in its feed supply chain.

The company converts animal manure and sludge from wastewater treatment ponds into biogas for electricity generation within its facilities. Wastewater from the poultry business, including operational waste like blood and fat, is also utilised in the Biogas System to produce alternative fuel for production processes. However, the company does not disclose information regarding the application of biogas slurry. Additionally, the company conducts risk mapping of its direct operations to identify potential water-related risks, encompassing water scarcity, pollution, conflicts, regulatory challenges, and impacts of climate change.

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

The company has developed eco-friendly livestock feeds with balanced nutrient formulas and enzymes specific to various animal life stages. This approach reduces odour and decreases nitrogen in excretions, lowering excess nitrogen in swine and chicken excretions by 20-30% and 12-13%, respectively. However, the company has not incorporated nutrient management performance into incentive schemes for farmers. It also engages with local communities and water authorities to understand local water issues, concerns, and potential risks.

The company conducts water quality risk assessments for all its direct operations but does not detail the metrics or methods for measuring organic loading. It addresses inorganic loading as a water quality risk, providing information on its management methods but not comprehensively covering the metrics used. The company lacks information on the percentage and location of sites exceeding the local environment's carrying capacity, by country. Additionally, it does not disclose a strategy for managing or removing faecal matter and uneaten feed on the seabed. The company's shrimp farms in Thailand and Vietnam are certified by the Aquaculture Stewardship Council (ASC), indicating that sludge discharge at these sites is not permitted. It reports nitrogen levels in wastewater from its aquatic animal farms as 22.41 mg/L in Thailand, 17.78 mg/L in India, 6.55 mg/L in Malaysia, 0.01 mg/L in the Philippines, 2.76 mg/L in Türkiye, and 7.24 mg/L in Vietnam.

The company ensures treated wastewater's quality through inspection and monitoring before external discharge, complying with legal requirements and CPF's Safety, Health, Environment, and Energy (SHE&En) standards. Regular checks are also conducted on external water sources. The Zero Discharge Project has been initiated at several animal farms to reduce environmental impact and repurpose treated water for activities like watering green areas on farms and in factories. However, it does not confirm that all wastewater is treated before discharge. The company's shrimp farms in Thailand and Vietnam are ASC-certified, requiring them to adhere to strict limits for settleable solids in effluent water. Nonetheless, the company has not provided information on achieving a neutral water impact. The company engages with stakeholders using tools like geo-social mapping to build dialogues and understand community needs, promoting harmonious coexistence. However, this engagement does not extend to identifying stakeholders potentially negatively affected by proximity to fish farming operations, such as issues related to waste, pollution, odour, or noise.

The company has established an antibiotics policy promoting responsible use across all its farms and contract farming operations, explicitly prohibiting antibiotics for growth promotion. The policy allows antibiotics only for therapeutic and prophylactic purposes under veterinary supervision, and prioritises antimicrobials not crucial for human medicine. A "no antibiotics ever" policy is implemented for layer hen farms. In aquaculture, broiler, and pork operations, antibiotics are reserved for therapeutic, prevention, and disease control purposes. Across all species, the policy bans antibiotics exclusive to human medicine and shared-class antimicrobials for growth promotion and prohibits routine use of Highest Priority Critically Important Antimicrobials (HPCIAs) in broiler, swine, and aquaculture operations. The company has also implemented measures to reduce antibiotic use, including effective farm management, biosecurity protocols, vaccination programmes, and enhanced nutrition through probiotics.

The company does not disclose the quantity of antibiotics used.

The company has a standalone Animal Welfare Policy that applies to its operations, subsidiaries, and contracted farmers, emphasising the Five Freedoms for all animal species. It conducts employee training and engagement programmes focused on animal welfare, tailored to different employee groups involved in animal handling, transport, and processing. However, the company does not disclose actions taken when its animal welfare policy is breached. It participates in several research and development initiatives to improve animal living conditions and health, such as developing biosecurity systems, smart farming technologies, and innovations like the Smart Rice Husk Flipping Robot and the Electrical Stunner for Shrimp Anesthetisation.

The company aims to have 100% of sows raised in group housing by 2030, with 45% currently in group gestation pen housing systems as of 2023. While layer hens are raised in cage-free housing, there is no commitment to avoiding close confinement for broiler chickens. Shrimp are farmed without eyestalk ablation. Regarding male swine, 9.27% are raised without testicle castration, and 37.48% without teeth clipping. All fish are farmed without fin clipping. The company has a policy limiting live animal transportation times to eight hours, with vehicles equipped with temperature control and ventilation systems. It is committed to humane slaughter practices, ensuring all animals are adequately stunned using internationally accepted methods, such as carbon dioxide gas stunning for pigs and electrical water bath stunning for chickens. Animals are provided with an enriched environment, including paddy husk bales for climbing, pecking objects, hanging perches, flooring materials for scratching, and chewing objects to satisfy their natural behaviours. However, there is no commitment to avoid breeds with production traits that increase the risk of anatomical or metabolic disorders.

The company ensures all its farms and contracted farms are certified and audited by third parties at least once every three years. They comply with livestock product standards set by each country's Department of Livestock Development, covering animal welfare management, Good Agricultural Practice (GAP), and Good Manufacturing Practice (GMP). The company holds Global Good Agricultural Practice (G.A.P.) Integrated Farm Assurance certification throughout its production chain in Thailand, Vietnam, and Malaysia. In addition, it has secured this certification for broiler farms in Thailand and Malaysia and laying hens in Vietnam and Malaysia. Moreover, its broiler operations in India, Malaysia, and Poland possess Genesis GAP certification.

The company reports annual improvements in animal welfare metrics. In 2023, 45% of sows were raised in group gestation pen housing systems, up from 40% in 2022. The percentage of male pigs raised without castration rose to 9% from 6%, and those raised without teeth clipping increased to 37% from 28%. Additionally, 88% of broilers were raised in enriched environments, up from 60% in 2022.

The company aims to have 100% of sows raised in group gestation pens by 2030, with 45% currently using this system as of 2023. It is committed to reducing, avoiding, and ultimately eliminating physical alterations like castration and teeth clipping; however, only 9% and 37% of pigs, respectively, comply with this goal as of 2023. An enriched physical environment is provided for both poultry and pigs, with noted progress in their surroundings' enhancement. The company discloses several environmental enrichment measures for laying hens, such as cage-free housing, perches, flooring materials for scratching and pecking, and access to nest boxes.

The company supports the Five Freedoms for animals at both company-owned and contracted farms but lacks details on specific actions taken to maintain high welfare standards in aquaculture operations. It does not disclose handling protocols for aquatic animal welfare. The company uses ice baths for shrimp stunning and electrical water baths for fish.

The company reports raising 4,300 tons of shrimp without eyestalk ablation, but does not disclose total shrimp production, preventing percentage estimation. Additionally, it reports a reduction in black scar lesions on shrimp, from 3.67% to 3.13% in 2022.

The company is engaged in research and development to improve shrimp welfare by employing Biofloc technology. This approach optimises water quality and oxygenation at shrimp farms through beneficial microorganisms that break down organic waste, minimising the need for frequent water changes. Presently, the company implements this technology only in its shrimp operations in Vietnam and Thailand.

The company does not disclose mortality rates or incident-based mortality information and has not set a time-bound target for reducing mortality rates.

The company does not disclose information on disease outbreaks in aquaculture. However, it implements non-medicinal and non-chemical strategies to prevent disease, including using probiotics in feed formulas. Additionally, it employs epidemic prevention measures alongside a recirculation aquaculture system.

The company does not disclose the mortality rate for shrimp.

The company does not disclose data on disease outbreaks related to shrimp aquaculture over the past three years. It employs Biofloc technology, along with ultrafiltration, to manage waste and improve water quality in shrimp farms, and also uses a recirculation aquaculture system. However, the Biofloc system is presently utilised only in its operations in Vietnam and Thailand. The company also does not disclose its use of pond liners in operations.

The company states its commitment to upholding human rights in accordance with the Universal Declaration of Human Rights, United Nations Guiding Principles on Business and Human Rights, and International Labour Organization Declaration on Fundamental Principles and Rights at Work.

In 2023, the company conducted human rights due diligence for its operations and supply chain, comprising steps such as identifying human rights issues, risk ranking, prioritisation, and mitigation. It also involves tracking mitigation measures and engaging with stakeholders. The ongoing process is regularly reviewed, and the company states its commitment to offering remediation in cases of violations, although the determination of such remediation is unclear. The company conducts regular ESG risk assessments based on criteria such as the UN Global Compact's 10 principles. High-risk suppliers undergo audits, with relationships terminated in cases of involvement in child labour and modern slavery. For other human rights and ESG risks, suppliers must submit corrective action plans, and capacity-building measures may be implemented if necessary. The company provides all employees with human rights training and offers capacity-building programmes, including classroom, on-site, and focus group training, for both high-risk critical and non-critical suppliers.

The company did not identify any human rights violations in its 2023 Human Rights Due Diligence (HRDD) process. However, it reports several risks related to health and safety for employees, communities, and suppliers, as well as issues concerning customer health, safety, and community standards of living, and water and sanitation. The company identifies specific risks, including health and safety incidents involving forklifts, improper machinery use, chemical burns, trips and slips, and ergonomic injuries within its feed, farm, and food business segments. In response, it has implemented measures such as increased health and safety training for employees in high-risk areas, including company-specific driver's tests for forklift operators.

The company prohibits child labour, forced labour, discrimination, and harassment, and has met its goal of paying all employees a living wage by 2023. Additionally, 100% of its operations in Thailand have been audited for code of conduct compliance, which includes non-discrimination and harassment policies. However, it is unclear if audits cover other selected policies. The company requires its suppliers to adhere to prohibitions on child labour, forced labour, discrimination, and inhumane treatment as per its Employment and Labour Management Policy, but it does not mandate suppliers to pay employees a wage aligned with the cost of living. The company prioritises the physical and mental health of its employees but does not specify if it provides sick pay.

The company audits its critical suppliers on various ESG and labour practices but does not specify which policies these audits cover. A grievance mechanism is in place for its direct operations, allowing employees globally to communicate with the Labour Protection Network Foundation via the Labour Voice Hotline. However, it is unclear if the complainant can remain anonymous or if the channel was developed in consultation with stakeholders. The company has a whistleblowing policy for employees, stakeholders, and third parties to report law or code of conduct violations, corruption, or rights infringements. It received seven reports through the Labour Voices Hotline and 86 whistleblowing complaints in total. However, only a small proportion of these grievances is categorised.

The company is committed to providing a safe and healthy work environment and has developed a Safety, Occupational Health, Environment, and Energy Policy in line with ISO 45001:2015 and ISO 50001:2018 standards. Its health, safety, and environment policy includes audits conducted by an independent certification body. An occupational health and safety committee, comprising executives and employee representatives, meets monthly to improve risk and hazard control measures. However, the company does not disclose the percentage of facilities with health and safety committees including worker representatives. Additionally, while the company acknowledges the need to address antimicrobial resistance (AMR), it does not report assessing this risk for its workforce.

The company reports a decrease in its Lost Time Injury Frequency Rate (LTIFR) from 1.3625 per million man-hours in 2022 to 0.8761 in 2023 across operations in Thailand, Cambodia, Türkiye, the Philippines, Malaysia, Laos, Vietnam, India, and the United Kingdom. Work-related fatalities decreased from 5 in 2022 to 2 in 2023, improving the fatality rate from 0.06 per million man-hours to 0. The company discloses a turnover rate of 14.64% for its Thai and overseas operations, with data disaggregated by age, gender, and seniority, including upper management, middle management, entry-level management, and staff.

The company affirms its respect for employees' right to join or form lawful associations and engage in collective bargaining but does not disclose its unionisation rate or measures taken to support these rights. It also expects its suppliers to uphold similar employee rights.

The company’s human rights policy addresses the right to collective bargaining, but it does not disclose the percentage or number of workers covered by such agreements. The company reports a workforce of 135,466 people, with no part-time, temporary, or seasonal employees. However, while it uses contract labour, the company does not disclose the size of its subcontracted workforce.

The company discloses that some of its plants are certified by the BRC Global Standard for Food Safety and GAP, recognised by the Global Food Safety Initiative (GFSI). It confirms that its animal farms and contract farms have been audited and certified to livestock product standards by relevant authorities in each country, ensuring compliance with animal welfare management, Good Agricultural Practice (GAP), and Good Manufacturing Practice (GMP). However, the company does not disclose the proportion of its sites that are GFSI certified. While it expects suppliers to meet quality, environmental, and safety requirements, it does not mandate GFSI certification.

The company has not disclosed the number or frequency of food safety audits, nor any information on corrective action rates related to its facilities’ non-conformances. The company is committed to developing a traceability system for raw materials via blockchain, focusing on maize, soy, palm oil, cassava, and fishmeal. Since 2016, it has implemented a Maize Traceability System in Thailand to ensure a deforestation-free supply chain. The goal is to achieve 100% global maize traceability by 2025, facilitated by the F. Farm application for farmer registration and sustainable agriculture knowledge sharing. However, this system does not cover aquaculture or animal farming.

The company claims to consider consumer feedback and has a product recall system, yet it does not disclose any system details. It reports no product recall incidents in 2023.

The company has not disclosed details on the number and locations of market bans for the reporting year, nor have any market bans appeared in media reports.

The company outlines that its sustainability governance structure is led by the Corporate Social Responsibility and Sustainable Development Committee, composed of four board members. This committee annually reviews and establishes key sustainability policies and goals, which it proposes to the Board for approval. It also sets directions and strategies and monitors sustainability performance for reporting to the Board of Directors. In 2023, the company conducted a review of its material topics identified in 2022, considering their impact on stakeholders across all business segments and geographies. These issues remain relevant in 2023. The board is involved in reviewing and approving these topics. The company provides a Board skills matrix, identifying all members as possessing skills in corporate governance and sustainability. However, there is no information on any board member's expertise in food safety, although six members have expertise in research and development.

The company uses sustainability performance indicators, such as the Dow Jones Sustainability Indices, FTSE4Good Index, MSCI ESG, and CDP Scores, to assess the CEO's remuneration. Employees contributing to 2030 sustainability targets are eligible for an innovation score that qualifies them for higher variable compensation, integrated into their KPIs. However, the percentage of compensation tied to climate-related performance is not disclosed. The company partners with multiple international and national organisations on topics like low pollution businesses, biodiversity preservation, no antibiotics use, and GHG emissions reduction. It is a signatory to the Seafood Business for Ocean Stewardship (SeaBOS) and a member of the UN Global Compact. The company collaborates with the Thai Broiler Processing Exporters Association, the Thai Feed Mill Association, and the Federation of Thai Industries. Additionally, the company aligns its policy engagement activities with the Paris Agreement's goals to limit the global temperature increase to well below 2 degrees Celsius.

The company has divided its innovation strategy into six programmes: Agri-Tech, Bio-Tech, Food-Tech, Sustainable-Tech, Operating-Tech, and Artificial Intelligence Tech investing. It has invested in research and development to develop alternative proteins, enhance animal welfare, and reduce greenhouse gas emissions. It has established CPF Ventures to collaborate with startups, particularly focusing on renewable energy projects. Additionally, the company provides a curriculum for innovation and creativity to foster sustainable growth. The company is ranked among the top 5% of companies in the S&P Global Corporate Sustainability Assessment 2023, highlighting its strong sustainability performance relative to peers.

The company produces and distributes plant-based proteins, focusing on taste and affordability, given the perception that plant protein emits fewer greenhouse gases than animal protein. In promoting its MEAT ZERO brand, the company highlighted consumer demand for healthier options and reduced animal impact. In its 2023 Annual Report, the company identified the risk of a "low-carbon society mission." To address this, it has set a 2050 Net-Zero target and outlines various strategies to achieve it, including protein diversification. As of 2023, 36.5% of its revenue was from low-carbon, 'green' products, including items labelled for their carbon footprint, reduction, or neutrality. These products span feed, live animals, fresh meats, shrimp, eggs, sauces, ready-to-eat food, and pet snacks. However, it is unclear if this includes alternative protein products. The company aims to increase its revenue from low-carbon products to 40%. In 2021, the company declared its ambition for MEAT ZERO to rank among the top three alternative meat brands globally within 3 to 5 years. Despite this aim, the company has not set a formal target for protein source diversification and is encouraged to do so.

The company owns the alternative protein brand, MEAT ZERO, which uses PLANT-TEC innovation to manufacture plant-based products that mimic real meat. It received 3-star awards in 2023 for its MEAT ZERO Nugget and Gyoza products. In collaboration with SuperDrob S.A., the company has developed plant-based raw fish from rice protein, catering to health-conscious consumers looking to reduce meat intake. These products are available in sashimi and smoked fish formats, both in thinly sliced and cubed forms, across various European countries. Founded in 2021 with experts from the United States, Japan, Taiwan, and universities in Thailand, the PLANT-TEC innovation supports the MEAT ZERO brand. The company aspires to be among the world's top three alternative meat brands by 2026 and has recently launched plant-based Laab bites, Mini Pops, and Chicken Tenders. The company adopts an Open Innovation approach, collaborating with research institutes and start-ups globally to create nutritious products. It has also invested in Well Well Invest S.A. and Rosleko sp. z o.o. in Poland for the development and distribution of plant-based and dairy alternatives.