June 22, 2020

CPF steps toward Circular Economy through new achievements in 2025-2030

Charoen Pokphand Foods Public Company Limited (CPF) has aggressively stepped toward its sustainable plan 2025-2030, the company announced recently.

The company realised related efforts by reducing greenhouse gas emission and plastic packages to mitigate climate change and maximising the use of resources through "Circular Economy" to ensure least impact and the company's sustainable growth.

Wuthichai Sithipreedanant, senior vice president (corporate social responsibility and sustainable development of CPF), said CPF's sustainable plan 2020 will be achieved by this year, bringing successful working in many areas. For example, CPF will enhance quality and food safety with 30% of new products development aiming for healthier and more nutritious products, and broiler chicken farms in Thailand and overseas having a Poultry Welfare Officer (PWO) at all times.

Moreover, 100% of critical suppliers for indirect raw materials groups (animal feed raw materials, food ingredients and packaging) have to be audited on their sustainability practices.

CPF has focused on alleviating environmental impacts. Particularly, the plastic packaging uses in its Thailand-based business have to switch to reusable, recyclable, upcyclable or compostable types by 2025. The same expectation applies for  overseas operations which have to do so by 2030. At present, the plastic packages in CPF's Thai operations are 100% reusable or recyclable. 

Additionally, those targeted goals also cover eliminating the use of unnecessary plastic packaging or plastic packaging that causes environmental impacts. This has to happen for Thai operations by 2025 and overseas operations by 2030. 

Other sustainable plans in 2025 have been steadily progressing and include reducing waste disposal to landfill and incineration per production unit by 35%; reducing water withdrawal per production unit by 30%; and reducing greenhouse gas emission Scope 1 (direct emission from charcoal and biomass) and Scope 2 (from the purchased electricity) per production units by 25%. All these objectives are compared to the base year of 2015.

The implementation of plastic package management and renewable energy under "Circular Economy" principle have continuously moved toward the goal to reduce environmental impacts," Sithipreedanant said. 

CPF also place a priority on animal welfare standard in accordance with the Five Freedoms principle. It also seeks for the responsible use of antibiotics. In Thailand, pig farms for pregnant breeder sows will be gradually transferred to a group housing system by 2025. The same goal should happen by 2028 for overseas operations. Moreover, CPF is also implementing a transition of layer farms towards a cage-free system.  

"CPF has strong foundation on the sustainability governance structure to align sustainability practices throughout the organisation. The company aims to optimise the use of resources and minimise waste bases on circular economy and complies with management standards and valorise waste from the production process," Sithipreedanant said.

He added that CPF also plans to increase its "Green Revenue from Green Products" under various projects by promoting renewable energy based on a solar rooftop plant, biogas extracted from pig manure etc.

Last year, the use of renewable energy in CPF's feed, farm and food business accounted for 25% of its total energy usage.

Additionally, farmers will be encouraged to adopt sustainable farm practices to ensure responsible and traceable raw material sourcing. Notably, five key raw materials for CPF's Thai operations, which comprise of corn, fishmeal, soybean meal, palm oil and cassava, will be 100% traceable this year.  CPF has also preserved, protected and restored biodiversity of land and marine ecosystem for more than 10,000 rais now.

CPF operates business bases on the three pillars of the sustainability strategies – "Food Security", "Self-Sufficient Society" and "Balance of Nature". The strategies have directly supported 11 out of the 17 Sustainable Development Goals to drive CPF's capability to achieve sustainable growth and inclusive development under the Environment, Social and Corporate Good Governance principle.

- CPF