Water Risk Assessment
The Company places importance on water management, hence, regularly conducts water risk assessment on annual basis. In 2023, the topic of water risk assessments covers various aspects including;
The coverage of overall water risk assessment includes various stages in value chain from suppliers to CPF operations and customers (product use phase) as well as business partners. Geographical locations and activity types are considered in the assessment. The assessment is based on globally recognized tools such as ENCORE biodiversity module, WRI Aqueduct and WWF Water Risk Filter. Assessment of future changes are based on various socio-economic and physical climate scenarios (i.e. SSP1 RCP2.6, SSP3 RCP7.0, SSP5 RCP8.5, and MICRO A1B optimistic, medium, pessimistic).
The results highlight stages in value chain, specific supplier categories and business activities to focus on in implementing mitigation programs and provides insights for business strategy formulation and financial planning in order to promote water resiliency in business operation and value chain. For CPF operations, high-risk sites identified from the tool will undergo in-depth water risk assessment based on local context (area-based assessment) to reconfirm whether they are high-risk against these aspects.
Water Risk Management Measures
CPF considers water-related risks as part of the site selection process for all of our new operational sites, including flood and drought risks.
Furthermore, CPF has water management measures for existing operational sites with high risk such as;
- Formulation of site-specific water management plan and impact mitigation plan with top management oversight
- Adjustment of site-specific Business Continuity Plan (BCP)
- Close monitoring of internal and external water-related physical parameters
- Close monitoring of upcoming laws and regulations and change in water pricing
- Proactive analysis and preventive maintenance of water facilities
- Installation or upgrade of water treatment facilities
- Community survey and establishment of community engagement plan
- Collaboration with local stakeholders on the topics of concern
- Internal and external communication of water management measures
- Continuous improvement in water efficiency and ensure compliance with standard on water quality
Flow Diagram of Water Risk Management
