CPF integrates sustainability into its DNA: thinking good, doing good, and being holistic.
“CPF will continue to intensively promote sustainability, even in a world full of conflict and uncertainty. Business organizations in the region share this perspective. Every organization continues to fully implement its own sustainability role because sustainability is fundamental to doing business.”
In a world order that is shifting from its traditional structure to a multipolar world, sustainability has become a fundamental condition for the long-term survival and competitiveness of businesses. Those that can manage resources efficiently, reduce environmental impact, and create transparency throughout the value chain will be able to gain the trust of markets, investors, and business partners globally.
"CPF believes that sustainability is something every business should have in mind, not something to question whether it's necessary or not. Sustainability is fundamental to doing business. If the country is not doing well and the people are suffering, there's no way a business can succeed."
Kobboon Srichai, Chief Executive Officer, Corporate Affairs and Investor Relations, Charoen Pokphand Foods Public Company Limited. หรือ CPF Reaffirming CPF's commitment to sustainability in an exclusive interview with... bank finance They pointed out that sustainability has been CPF's DNA since day one, starting from small steps with the desire to think and do good for everyone around them, in order to drive growth together for the nation, the people, and the business.
Convey the philosophy of three benefits to... DNA:
The catalyst is the "results" that everyone is facing.
Kobboon began the exclusive interview by bringing up... "The Philosophy of Three Benefits for Sustainability" ของ Senior Chairman Dhanin Chearavanont To illustrate CPF's role in sustainability, this philosophy focuses on generating benefits in three areas:
-
- Contributing to the nation By contributing to a better environment and economy for the country, and strengthening communities and society.
- Doing good for the public. Helping everyone grow and improve their well-being together.
- Contributing to the company. To take care of all personnel and stakeholders, this philosophy has been integrated into CPF's DNA from the very first day of its business until the present.
CPF has consistently focused on sustainability, starting with its announcement of achieving a Net Zero target by 2050. This is further driven by short-term and long-term goals from the Science Based Targets initiative (SBTi), investments in digital systems to increase efficiency, and collaboration with partners and farmer stakeholders. These actions reflect CPF's unwavering commitment to sustainability.
Kobboon offered an interesting perspective: in a changing world order, a world full of volatility and international conflicts, sustainability has become increasingly stringent. This is especially true with the broader criteria for measuring responsibility in the European region, where everything must be measurable and have clear results. From a business perspective, conducting trade with Europe is unavoidable and requires comprehensive sustainability, which presents a significant challenge.
"Some may view sustainability as being used as a trade barrier, particularly regarding the requirement for measurable and verifiable data, such as disclosure of information that needs to be checked for accuracy. This often adds to the cost, making it difficult for small and medium-sized companies to grow, especially since exporting to Europe involves numerous sustainability requirements and high implementation costs."
Kobboon offered the perspective that the true catalyst for sustainability may not be increased performance metrics, but rather the challenges the world is currently facing—natural disasters, climate change, and pandemics. These are key catalysts that make everyone prioritize sustainability more, leading to the creation of new and beneficial sustainability projects. If this is the case, it would be a very positive sign because it shows that all parties are working together to drive progress, not just one person, but everyone is aware of their own role and responsibilities.
Even though the world is at war.
Sustainability must move forward.
Kobboon reflected on the current conflicts, stating that war, regardless of the cause, is contrary to achieving sustainability. Where there is war, it is clear that area lacks sustainability. The issue of "peace" is clearly stated in the Sustainable Development Goals (SDGs), which emphasize that sustainability means living together in peace.
Driving sustainability teaches us to prioritize the common good over personal gain. Based on CPF's experience, contributing to the common good ultimately benefits the business, as CPF is a part of that collective environment. While war certainly causes hardship in many areas, it should not hinder the overall sustainability efforts of the organization.
“CPF will continue to intensively promote sustainability, even in a world full of conflict and uncertainty. Business organizations in the region share this perspective. Every organization continues to fully implement its own sustainability role. There is no reason to diminish the importance of this issue, because sustainability is fundamental to doing business.”
Kobboon emphasized that what is happening now is a consolidation of efforts by business organizations aiming to drive sustainability and achieve tangible results. Every organization believes that sustainability can only be achieved through the cooperation of all parties. Furthermore, driving sustainability is not just about the environment; it also involves economics, business strategy, and risk management. When change occurs, it is the responsibility of the executives in every organization to assess the risks and plan to mitigate the impact, ensuring that the business can continue to grow sustainably.
“War situations have intensified the drive for sustainability, with economic strategies acting as a key catalyst. Every organization wants its business to be sustainable. Historically, people have focused on environmental sustainability, but from an organization's perspective, the starting point must be strategy, especially risk management. Environmental impacts have already occurred; the question is how to mitigate them. Only then can environmental initiatives be driven forward.”
Creating sustainable innovations.
Focusing on every dimension for the better.
Kobboon stated that since the inception of the business, CPF has always prioritized sustainability. Innovation is developed in every department to improve operational efficiency while simultaneously promoting sustainability. For CPF, driving sustainability isn't about announcing new projects, but rather about improving everyday operations to be better and faster, reducing costs, and minimizing the impact on society, communities, and the environment. If this is achieved, it is considered innovation for sustainability.
“CPF’s sustainability innovation is embedded in our daily operations. We start with a simple question: How can we make something better? If we can make it better, faster, more economical, and without negatively impacting society, communities, and the environment, that’s sustainability innovation.”
Kobboon gave an example of the "Waste to Value" approach at CPF, where they devised ways to utilize the entire egg without generating any waste. Even the eggwhite clinging to the shell can be used to produce animal feed, and the eggshell itself can be recycled into various materials. This helps reduce waste management costs and ensures the most efficient use of raw materials.
In terms of production processes, CPF is continuously developing, particularly in reducing dust and odor impacts. This includes utilizing bioenergy from pig and chicken manure, designing more efficient processes, and implementing automation in high-risk areas to protect personnel from potential hazards. Furthermore, CCTV cameras are used to monitor animal health, and AI is employed to process data for greater accuracy.
Beyond internal development, CPF also looks to developing its more than 5,000 business partners in its supply chain, especially SMEs. CPF sends experts to help find ways to increase production efficiency and reduce costs, so that business partners can grow together as a whole ecosystem and adapt to sustainability in a strong manner.
For sustainability, a thorough understanding of the core principles is necessary.
Strive to think good thoughts and do good deeds for everyone around you.
Kobboon explained that the key to driving sustainability into tangible results is understanding its essence. For CPF, sustainability starts with the attitude of "thinking good and doing good for everyone around us," acting as an ethical organization that doesn't cause harm to others. Because to have a happy and sustainable life, one must think and act well for everyone around them. Then, they consider the context of their specific business and determine what needs to be done to ensure the happiness of those around them. Finally, they develop specific actions to begin implementing.
These DNA traits are passed on to all personnel through the six core CPF Way organizational values:
-
- Conducting business strictly according to the three-benefit principle for sustainability.
- Think and act quickly and efficiently to gain a competitive advantage.
- Make difficult things easy by streamlining processes and procedures while maintaining high standards.
- Recognizing the need for change for the common good, in order to achieve the goals.
- They take the initiative to seek new business opportunities in order to achieve success and reach the organization's goals.
- Conduct yourself and perform your duties with honesty, integrity, fairness, transparency, and adherence to rules, morals, and professional ethics.
Kobboon reiterated that, based on past operations, most of CPF's farmer partners are satisfied. Very few farmers have requested to terminate their contracts. Most have remained with the company for generations because partnering with CPF offers the advantage of not having to bear the risk of price fluctuations. The key is to emphasize diligence, attentiveness, and careful handling of raw materials, while CPF provides support in terms of knowledge and methods. At a certain point, they can expand production, and with standardized selling prices, they can ensure profitability.
“The key is understanding how to drive sustainability, which we view as thinking and doing things that benefit everyone around us, while continuously developing ourselves. That's what allows businesses to survive and grow, so that our employees, partners, and farmer suppliers have better opportunities and lives, while caring for all stakeholders.”
Follow and read other columns in the Bank Finance Journal, April 2569, Issue 528 in digital format: https://goo.gl/U6OnIi
Including channels for ordering banking and finance journals Both current and past editions Complete here in one place: https://ma.co.th/product-category/mb-shop/
