CPF operates integrated agro-industrial and food business with its objectives to provide products in high quality and environmentally and socially responsible manner.
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At present, the level of greenhouse gas emissions continuously increases due to various economic activities, be they from the energy sector, the agricultural sector, the manufacturing sector or the waste management sector. This has led to rising temperature, severe weather conditions, shifting seasons and rising sea levels. These changes have been affecting food security as the volume and quality of produce largely depend on climate conditions. At the same time, these conditions also have impact on our livelihood. Management of greenhouse gas emissions has, thus, been under the global attention leading to the Paris Agreement in which countries collectively agreed to set the target to reduce greenhouse gas emissions. The Paris Agreement’s goal is to keep the increase in the global average temperature to well below 2°C and to pursue efforts to limit the increase to 1.5°C, recognizing that it would further help reduce negative impacts on the ecosystem as well as on our health and well-being well beyond the 2°C target. This is a huge challenge for all sectors. We are, thus, emphasizing our effort to find and develop approaches to mitigating and adapting to the changes that may occur.

Climate Change Mitigation

We have set the targets to reduce greenhouse gas emissions, energy consumption, waste to landfill and incineration, and water withdrawal. We aim to achieve this through energy conservation and energy efficiency projects and an increase in the proportion of renewable energy, together with improvement, transformation and valorization of waste and wastewater in order to reduce emissions throughout the value chain.

In addition to effective management throughout the production process, we also focus on developing “Sustainable Products” to encourage participation from customers and consumers in mitigating environmental impacts. We also put our efforts in protecting biodiversity through projects to conserve and restore mangrove forests and watershed forests.

Climate Change Adaptation

We recognize our increased exposure to climate change risks, especially those related to supply security of agricultural products, from feed manufacturing to food processing. Our company has introduced a strategy that will address the short, medium and long-term a short, a medium and a long-term management strategies

Short-Term Strategy

We assess supply risks, monitor global demand and manage our agricultural raw material stocks in response to changing situations. We closely observe the balance between supply and demand and explore potential sources of our key raw materials so that alternative sources are in place when there is a risk of shortages. To protect our business from price volatility, we hedge using forward contracts and monitor our safety stock as well as our stock capacity on a daily basis in all countries where we operate. Additionally, by using satellite data to support the analysis of past climate trend, we can better project future conditions that will allow us to optimize our current sourcing methods and plan for unexpected scenarios.

Medium-Term Strategy

We seek to develop substitutes for key raw materials that are highly vulnerable to climate change. For instance, wheat, cassava, canola meal or distillers dried grains with solubles (DDGS) can be used as substitutes for corn, soy and rice bran in animal feed. Furthermore, protein extracted from soy and grains can replace fishmeal in shrimp feed. The development of raw material substitutes allows us to manage the cost of production, control quality, prevent raw material shortages during a certain period and ensure our business continuity.

Long-Term Strategy

We have been working in partnership with our suppliers, recognizing that changes in agricultural practices and supply chains can help mitigate greenhouse gas emissions and increase farmers’ adaptive capacity. We focus on providing practical information and technological resources to lower production costs, increase productivity and enable the ability to be self-reliant and adaptive to climate change. We collaborate with government agencies, the private sector and the civil society so that all could achieve mutual growth in the long run.

In addition, we are also committed to operating our businesses transparently. Every year, we disclose our climate change strategy and performance through the sustainability report and continuously participate in the Carbon Disclosure Project (CDP) since 2015.

The Company recognizes the importance of the business impact of climate change. The climate-related risks and opportunities are assessed in accordance with the recommendation of Taskforces on Climate-related Financial Disclosures (TCFD) in order to understand the impact of climate change both from external and internal factors, to develop actions to control and reduce greenhouse gas emissions, and to further ensure our efforts towards sustainability. More details can be found here.

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