We recognize that developing win-win partnerships with our business partners is our opportunity and responsibility to enhance the quality of life of people in the society. Given that our business is diverse in products and raw materials used, we therefore developed the Sustainable Sourcing Policy and Supplier Guiding Principle in 2014 and have operated in line with CPF Supply Chain ESG Management Approach since 2015.

CPF Supply Chain ESG Management Approach consists of 4 components; supply chain analysis & awareness, ESG assessment, ESG management, and targets & disclosure.

Each component supports CPF in achieving socially and environmentally responsible sourcing throughout the supply chain as follows

Spend analysis & awareness help the company identify critical suppliers, classified by high spending value, delivering critical components, or non-substitutable characteristic, which enable the prioritization in supply chain management.

ESG assessment through ESG risk research by commodity, sector and country sourced, in combination with supplier ESG self-assessment questionnaire and on-site audit. This allows the company to understand the potential ESG risks among suppliers.

ESG management involves education on CPF’s supply chain ESG management approach, ESG awareness raising, support in performance improvement against corrective action plan and proactive capacity building program for suppliers.

Targets & disclosure reflect CPF’s ambition and demonstrate our performance to the public with transparency.

CPF’s supply chain management results in 2022 are as follows (Thailand Operations)

• 338 Tier-1 suppliers were identified as significant Tier-1*
• 45 Non-Tier-1 suppliers were identified as significant Non-Tier-1*
• 48% of total spending was on significant Tier-1 suppliers
• 100% of Tier-1 suppliers have provided the written acknowledgment on Sustainable Sourcing Policy (2022 Target at 100%)
• 100% of critical suppliers have been assessed for social and environmental performance (2022 Target at 100%)
• 414 suppliers have participated in capacity building program (2022 Target at 414 suppliers)

CPF is currently expanding our CPF Supply Chain ESG Management Approach across overseas operations in which the performance will be reported in the future.

*Remark: Significant suppliers refer to suppliers identified as having high ESG risk or as critical supplier for the company or a combination of both.