Case study: How C.P. Group protects biodiversity
As Thailand’s largest private company and one of world’s largest conglomerates, consisting of three core businesses that operate in agribusiness and food, retail and distribution, and the telecommunications industries, with investments in more than 30 countries, C.P. Group (Charoen Pokphand Group) is committed to developing measures to maintain the balance of the ecosystem and biodiversity Tweet This!, constantly assessing the risks and impacts from its operations.
This case study is based on the 2017 Sustainability Report by C.P. Group published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Abstract
To protect the ecosystem and biodiversity, C.P. Group not only manages its resources and raw materials, but also prevents the deterioration of, conserves, restores and develops sources of natural resources. In order to protect biodiversity C.P. Group took action to:
- assess biodiversity risks
- promote traceability of raw materials for animal feed
- prevent impacts on ecosystem and biodiversity from products and services
- conserve and restore the ecosystem and biodiversity
- conserve marine resources
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With this case study you will see:
- Which are the most important impacts (material issues) C.P. Group has identified;
- How C.P. Group proceeded with stakeholder engagement, and
- What actions were taken by C.P. Group to protect biodiversity
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What are the material issues the company has identified?
In its 2017 Sustainability Report C.P. Group identified a range of material issues, such as leadership and human capital development, corporate governance, responsible supply chain management, health and well-being. Among these, protecting biodiversity stands out as a key material issue for C.P. Group.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups C.P. Group engages with:
| Stakeholder Group | Method of engagement |
| Employees and Families
| · Intranet and internal magazine · Employee surveys · Meeting with executives · Open dialogues · Presentation on innovation · Volunteer programmes · Channels for voicing opinions |
| Customers and Consumers
| · Customer surveys · Customer visits · Website and newsletters for consumers · Meetings · Consumer complaint centre · Consumer centre |
| Shareholders and Investors
| · Quarterly meetings · Annual general meeting · Visits · Office of Company Secretary · Office of Investor Relations · Other communication channels such as website |
| Business Partners
| · Meetings · Visits and open dialogues · Joint initiatives to create innovation · Audits, and advisory and academic services · Capacity-building programmes |
| Communities and Societies | · Public participation forums · Ongoing dialogues and visits · Complaint channels · Initiatives to promote quality of life |
| Governments | · Joint initiatives, projects and activities · Participation in public policy-making · Meetings · On-site visits |
| Creditors | · Letter to creditors · Meetings · Knowledge sharing |
| Non- governmental Organisations
| · Open dialogues through various channels and meetings to facilitate collaboration · Networking |
| Media | · Public relations activities through multiple communication channels · Media tours · Participation in media events · Executive interviews |
| Competitors | · Participation in industry organisations, such as the Federation of Thai Industries · Obtain information from the media and public forums |
How stakeholder engagement was made to identify material issues
To identify material topics C.P. Group carried out interviews with external stakeholders and, to prioritise the topics, conducted an online Materiality Prioritisation Survey, to seek opinions and views from executives across all Business Groups and representatives from various stakeholder groups.
What actions were taken by C.P. Group to protect biodiversity?
In its 2017 Sustainability Report C.P. Group reports that it took the following actions for protecting biodiversity:
- Assessing biodiversity risks
- C.P. Group carries out a biodiversity risk assessment in both Thailand and overseas, using internationally recognised tools. To achieve the Sustainable Development Goals (SDGs) related to ecosystem and biodiversity protection, in 2017 C.P. Group introduced readiness assessment and track progress activities for sustainable development in various countries, using the SDG Dashboard. Additionally, C.P. Group utilises WBCSD’s (World Business Council for Sustainable Development) Global Water Tool (GWT) to assess biodiversity risks in the different areas where it operates. The GWT is used to assess biodiversity risks of terrestrial and aquatic (both freshwater and saltwater) plants and animals.
- Promoting traceability of raw materials for animal feed
- Traceability of key raw materials for animal feed is an important mechanism for C.P. Group to manage significant environmental and social risks, particularly ecosystem and biodiversity protection. C.P. Group’s business partners have to continuously operate in accordance with the traceability system developed by the Group, to ensure raw materials for animal feed come from sources that have a legal title deed and are not from restricted areas or conservation areas. The Feed Ingredients Trading Business Group collaborates with supply chain stakeholders to enhance their understanding of issues related to raw materials for each animal feed, develop policies and criteria for sustainable sourcing of animal feed raw materials, supply raw materials from sources that do not harm the environment, conduct Life Cycle Assessments in order to understand the environmental impacts caused by each farm, implement the Maize Traceability Programme established in 2016, and continue implementing these measures.
- Preventing impacts on ecosystem and biodiversity from products and services
- C.P. Group tries to prevent impacts on ecosystem and biodiversity that potentially arise from its products and services, including chemical residues in the ecosystem that could affect biodiversity. Accordingly, C.P. Group has developed chemical product safety data sheets and promotes the correct and safe usage of products. This ensures customers’ safety and maintains ecosystem health and biodiversity.
- Conserving and restoring the ecosystem and biodiversity
- Responsibly operating its business by participating in and supporting the conservation of the environment and biodiversity is one of C.P. Group’s priorities. Examples of this include site selection of business partners’ facilities, raw material sourcing, and delivering products and services to customers. C.P. Group carries out activities and projects to drive, protect and restore terrestrial ecosystems, forests, and marine ecosystems, and also participated in the Pracharat Initiative, a public-private collaboration to protect the ecosystem. The organisations with which C.P. Group has cooperated include, among others, the Royal Forest Department, the Department of Fisheries, the Department of National Parks, Wildlife and Plant Conservation, and the Marine Department.
- Conserving marine resources
- C.P. Group focuses on the protection and conservation of natural marine resources through various projects related to conservation, development, restoration and protection. These projects aim to reduce impacts from pollution, promote and develop the conservation and management of fishery and marine resources along with equal access to fishery resources, and reduce marine impacts due to climate change.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 304-3 Habitats protected or restored
2) Disclosure 308-1 New suppliers that were screened using environmental criteria
Disclosure 304-3 Habitats protected or restored corresponds to:
- Sustainable Development Goal (SDG) 6: Ensure availability and sustainable management of water and sanitation for all
- Business theme: Water-related ecosystems and biodiversity
- Sustainable Development Goal (SDG) 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development
- Business theme: Marine biodiversity
- Sustainable Development Goal (SDG) 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
- Business theme: Mountain ecosystems, Natural habitat degradation, Terrestrial and inland freshwater ecosystems
Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.
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References:
1) This case study is based on published information by C.P. Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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