Charoen Pokphand Foods PCL

CP Foods discloses that it conducts a water-related risk assessment using the WRI Aqueduct Water Risk Atlas, including water quality at a basin/catchment level of its direct operations. In the engagement call with FAIRR, the company also mentioned that it plans to expand the water quality risk assessment it conducts for its own operations to seven countries covering 80% of production within a few years.

The company discloses the BOD and Nitrogen quantities discharged and disaggregates this by operating country but does not disclose this data for water discharged in priority water bodies specifically. The company disclosed that it did not receive any fines, enforcement orders, or other penalties for water-related regulatory violations in FY2023. The company discloses that its water-related CAPEX increased by 5% in the last financial year, and water-related OPEX increased by 1.5% in the same period. The company anticipates a 1.5% increase in both OPEX and CAPEX moving forward.

The company discusses the risk that poor water stewardship poses to access to fresh water and aquatic biodiversity, but it does not specifically address areas of high biodiversity or water stress.

The company states that it undertakes risk mapping of direct operations to identify potential water-related risks in the specific area covering water scarcity, water pollution, water-related conflicts, regulatory challenges, and climate change impacts. In the engagement call with FAIRR, the company mentioned that the risk assessment does not include its contracted farms. The company has also conducted a biodiversity impact assessment, using ENCORE to assess the materiality of each risk. In the impacts drivers on nature section, the company mentions that pollution has a "medium" risk impact on its raw agricultural sourcing and a "very low" risk on its feed business.

The company provides organic fertiliser and soil amendments which are made form manure and byproducts to local farmers. However this does not seem to include farmers who supply feed to the company.

CP Foods cites legal risks and risks from pertinent regulations within the Risk Management section of its Annual Report. However, it does not explicitly mention regulations related to nutrient pollution.

The company says that it promotes water management systems to its business partners and suppliers. However, it does not explicitly mention audits. The company states in its CDP responses that it did not experience any events of non-compliance with regulations. The company disclosure to CDP covers the CP Group including 'companies, entities or groups over which operational control is exercised'. As such, this statement does not seem to cover all its livestock suppliers.

The company discloses the volume of wastewater that has undergone tertiary treatment. The company discloses that 2.91 million m3 of wastewater was sent to farmers to use for agriculture. In its sustainability report, the company mentions that the wastewater given to farmers is treated. The company uses sludge from wastewater treatment ponds to produce biogas, which generates electricity for some facilities. Additionally, wastewater containing operational waste from the poultry business, such as blood and fat, is sent to the Biogas System to generate energy as an alternative fuel for the production process. This practice seems to be limited to certain sites. It is not clear from the company disclosure if it supports contracted livestock farms on biogas capture.

The company has a number of targets related to waste management but these do not seem to apply to animal waste specifically. CP Foods also does not disclose a target for wastewater quality.

The company does not include contracted farms in its risk assessment. In the engagement call with FAIRR, the company disclosed it is aware of the need for education and support in environmental practices for farmers and suppliers, and it mentioned it works closely with its livestock suppliers to ensure compliance with regulations and best practices. Examples provided include soil care and poultry care, although no details of the support initiatives were provided. The company discloses about its 'Treated Water Bio-Fetiliser Sharing' Project. In this project, treated wastewater of appropriate quality, which contains nutrients, is provided to local farmers for crops. The company does not mention whether it supports local farmers with agronomic technical expertise to apply fertiliser to minimise pollution risks. The company states that it extends support to its feed suppliers by promoting farming knowledge and good agricultural practices in line with the Thai Agricultural Standard TAS4402-2010 and the Good Agricultural Practices for Maize. The training covers various topics, including soil nutrient analysis, post-harvest management, and methods to boost productivity. However, the % of farmers engaged is not disclosed.

The company does not disclose this information.

The company does not disclose this information.

The company does not disclose this information.

The company provided a response to the investor letter and responded to the engagement questions. The company met with investors within the engagement period. It acknowledged the FAIRR’s assessment but it did not provide feedback.