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Application of CEO Water Mandate Framework in Food Industry of C.P. Group 26 th August 2016 Mr. Netithorn Praditsarn Vice President, Group Sustainability and Communications Charoen Pokphand Group (C.P. Group)

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Application of CEO Water Mandate Framework in Food Industry of C.P. Group

26th August 2016

Mr. Netithorn Praditsarn Vice President, Group Sustainability and Communications Charoen Pokphand Group (C.P. Group)

Founded in 1921 Multinational conglomerate

and one of the largest private companies in Thailand

13 groups of business 300,000+ employees US $42 bn annual revenue Invested in 18 countries

and exporting to over 100 countries

Among the top world producer of animal feed, broiler chicken, pig and shrimp products.

“Kitchen of the World”

Introduction

Agro-Industry and Food Marketing and Distribution Telecommunication Seeds, Fertilizer and Plant Protection International Trading Crop Integration Property Development Plastics Pet Feed Ingredients Trading Automotive and Industrial Products (China) Finance and Banking (China) Pharmaceuticals (China)

South Asia: o India o Bangladesh o Pakistan

Europe: o United Kingdom o Belgium o Russia o Turkey

East Asia: o China (and Taiwan)

South East Asia: o Thailand o Vietnam o Malaysia o Myanmar o Philippines o Laos o Cambodia o Indonesia

Charoen Pokphand Group Investment (18 Countries)

Africa: o Tanzania

USA

Our Business operations

Copyright © 2016. Charoen Pokphand Group Co., Ltd. All rights reserved. Strictly internal use for C.P. Group only. 4

CP Group’s Global Value Chain

Input Animal Feed Farming Manufacturing Retails Services

Seed, Fertilizer,

Plant Protection

Feed Ingredients Trading

Agro-Industry & Food

Telecommunication

Retail

Crop

Integration

Information Technology

Property

Development

Pet Food

International Trading

Crop

Integration

(Maize)

Automotive

Plastics

Finance

Pharmaceutical

Copyright © 2016. Charoen Pokphand Group Co., Ltd. All rights reserved. Strictly internal use for C.P. Group only. 5

CP Group Sustainability Programs

July 22, 2012 Footer text here 6 Copyright © 2016. Charoen Pokphand Group Co., Ltd. All rights reserved. Strictly internal use for C.P. Group only. 6

GOAL 6 Ensure availability and sustainable management of water and sanitation for all

6.3 By 2030, improve water quality

by reducing pollution, eliminating

dumping and minimizing release of

hazardous chemicals and

materials, halving the proportion of

untreated wastewater and

substantially increasing recycling

and safe reuse globally

6.4 By 2030, substantially increase

water-use efficiency across all

sectors and ensure sustainable

withdrawals and supply of

freshwater to address water

scarcity and substantially reduce

the number of people suffering

from water scarcity

GOAL 6 TARGETS Raw Material Suppliers Inbound Logistics

Company Operations

Distribution Product Use Product End Life

Sustainability

Performance

Indicators

ECONOMIC ENVIRONMENT SOCIAL Water

Effluent & Waste

Supplier Envi. Assessment

Compliance

Project 2016 2017 2018

S1. Supply Chain Sustainability

1) Manage water risk in the supply chain Thailand Thailand + Overseas

I3. Sustainability Centre of Excellence

1) Reduce water consumption Reduce water intensity by 30% by 2030

from 2015 baseline

2) Enhance wastewater treatment performance “Zero Non-Compliance” & “Zero Discharge”

3) Map water stress in company operation Thailand + Overseas

4) Manage water risk in the company operation Thailand Thailand + Overseas

Copyright © 2016. Charoen Pokphand Group Co., Ltd. All rights reserved. Strictly internal use for C.P. Group only. 7

Ref: http://ceowatermandate.org/

Operations

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Self-Assessment Tool for Evaluating Access to Water, Sanitation and Hygiene (WASH) at the Workplace

Copyright © 2016. Charoen Pokphand Group Co., Ltd. All rights reserved. Strictly internal use for C.P. Group only. 10

Water: The Company’s total water consumption was 257.13 mil m3, lower than

the target, due to systematic water management, the control of water

consumption in all operation sites, and continual performance monitoring. CPF reused treated water by 34.59 mil m3 or 13.45 % of total water consumption.

Copyright © 2016. Charoen Pokphand Group Co., Ltd. All rights reserved. Strictly internal use for C.P. Group only. 11

Closed-loop Shrimp Farm at Roipetch, Trad Province

Thailand’s first intensive shrimp farm with water recycling system

75%

Recycled

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Examples of Water Recycle Systems at

CPF’s Processed and Ready-to-eat Factories

88% Recycled in our Nong Chok Sausage Factory

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60 Farms

Context

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The Global Water Tool (GWT) is used to identify corporate

water risks and opportunities which provides easy access

to and analysis of critical data. It includes a mapping

function to plot sites with datasets and Google Earth interface for spatial viewing.

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The GEMI Local Water Tool™(LWT) is used to evaluate the

external impacts, business risks, opportunities and

management plans related to water use and discharge at a

specific site or operation.

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Indicators

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Management Plan

Risks = Internal Importance Level x External Stress Severity Level Impacts = External Stress Severity Level x Magnitude of Company Contribution

Business Risks (0-9) External Impacts (0 – 9)

Strategy

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Eco-Efficiency Targets

Engagement

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Khao Praya Dernthong: Water Source Forest Project

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The collaboration with Department of Marine and Coastal

Resources (DMCR), Biodiversity-Based Economy Development

Office (Public Organization) and Civic Network to support and

promote the conservation of soil water forest and biodiversity

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Prasae Learning Center Open Ceremony

Communications

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Copyright © 2016. Charoen Pokphand Group Co., Ltd. All rights reserved. Strictly internal use for C.P. Group only. 27

Sustainability Reports

Dimension & Criteria (Criteria Weightings per RobecoSAM GICS Industry)

Food & Staples Retailing

Food Products Telecommunication Services

EC

ON

OM

IC

Codes of Conduct/Compliance/Corruption & Bribery 5% 5% 6%

Corporate Governance 6% 5% 6%

Customer Relationship Management 5% - 8%

Health & Nutrition 7% 5% -

Risk & Crisis Management 6% 6% 6%

Supply Chain Management 6% 6% 4%

Tax Strategy 2% 2% 2%

Innovation Management - 5% 2%

Strategy for Emerging Markets - 6% -

Brand Management - - 4%

Privacy Protection - - 6%

EN

VIR

ON

ME

NTA

L Environmental Policy/Management System 5% 3% 4%

Environmental Reporting 3% 3% 4%

Genetically Modified Organisms 4% 3% -

Operational Eco-Efficiency 7% 7% 6%

Packaging 4% 3% -

Raw Material Sourcing 6% 4% -

Water Related Risks 3% 3% -

Climate Strategy - 3% 4%

Electro Magnetic Field - - 3%

SO

CIA

L

Corporate Citizenship and Philanthropy 3% 3% 3%

Human Capital Development 6% 6% 5%

Labor Practice Indicators and Human Rights 6% 6% 5%

Occupational Health and Safety 7% 7% 3%

Social Reporting 3% 3% 4%

Talent Attraction & Retention 6% 6% 5%

Digital Inclusion - - 4%

Impact of Telecommunication Services - - 3%

Stakeholder Engagement - - 3%

Total 100% 100% 100%

Copyright © 2015. Charoen Pokphand Group Co., Ltd. All rights reserved. Strictly internal use for C.P. Group only. 28

40%

29%

31%

Economic Environmental Social

44%

21%

35%

Economic Environmental Social

Telecommunication Services

37%

32%

31%

Economic Environmental Social

Food & Staples Retailing

Food Products

Sustainability Assessment Criteria

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Bloomberg

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CDP in numbers

Thank you