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.
It is crucial that CPF assess risks and opportunities relating to climate change in order to keep its business operations in line with the changing global situation caused by climate change. The Company has adopted the Recommendation of Taskforces on Climate-related Financial Disclosure (TCFD) as guidelines for assessing risks and opportunities relating to climate change, as well as for disclosing climate risk information to investors and stakeholders in order to enable them to analyze the Company's ability to cope with climate risks. See more infomation here
CPF Net-Zero Journey
We are proud to be the first food processing company in the world with both near- and long-term forest, land and agriculture (FLAG) science-based targets validated by the Science Based Targets initiative (SBTi) with 2020 as the base year, Charoen Pokphand Foods PLC commits to 42% reduction and 90% reduction of all 3 scopes of greenhouse gas non-Flag emission by 2030 and 2050, respectively. We further commit to 30.3% reduction and 72% reduction of Scope 1 and Scope 3 greenhouse gas FLAG emissions by 2030 and 2050, respectively. We also commit to zero deforestation across our primary deforestation-linked commodities by the fiscal year 2025.
Please see more information as CPF Net-Zero Journey
Business Impact Valuation: Social Cost of Carbon (SSC)
CPF recongnized the importance in climate resilience. As one of our material topics, CPF keeps track of our business contribution to the climate issue through generally accepted indicators, GHG emissions, in which we have target in place to reduce the GHG emissions and ultimately become net zero by 2050. Furthermore, CPF conducts impact valuation in terms of social cost of carbon (SCC) based on the World Economic Forum’s (WEF) International Business Council (IBC) Guidance. The social cost of carbon measures the monetary value of the net harm to society associated with the emissions of GHG to the atmosphere in a given year. This includes the value of all climate change impacts in social and environmental aspects, including (but not limited to) changes in net agricultural productivity, human health effects, property damage from increased flood risk natural disasters, disruption of energy systems, risk of conflict, environmental migration, and the value of ecosystem services.
The social cost of carbon is estimated to be THB 7,015.07 /tCO2e ($204/tCO2e) in 2023, applying a 2% average discount rate.
In 2023, CPF has emitted 1,455,422 tCO2e of GHG (scope 1+2) across our operations in 9 countries in which we have direct influence. Therefore, the social cost of the carbon is estimated to be THB 10,210 million.
With this in mind, CPF strives to reduce GHG emissions both in our operations and value chain by increasing renewable energy proportion, implementing efficiency improvement programs, and exploring carbon capture and utilization/storage (CCS/CCUS) technologies. We also promote resilience in the value chain through research and development in low carbon products and advocating sustainable sourcing in various aspects e.g. traceable and deforestation-free sourcing, climate resilient and sustainable agriculture, and carbon footprint accounting of raw materials. We believe these activities can contribute to the mitigation of climate impacts from our operations which are inflicted on society and ultimately generate positive impacts in the long-term.