CPF Investing Billions to Make Operations Greener15 June 2012
THAILAND - Charoen Pokphand Foods Plc (CPF), the SET-listed flagship of the CP Group, has announced total spending of 4 billion baht to turn all of its 323 operations green within the next 3-5 years.
According to Bangkok Post, the move is partly to address rising demand by consumers for better food safety and alleviate their environmental concerns.
But it is also to comply with global requirements, especially in the EU, which is expected to enforce carbon labelling and footprint requirements in the coming years.
Adirek Sripratak, the president and chief executive, said 122 units or 37.8 per cent now use green energy such as co-generation or biomass or make products that have a low carbon footprint.
CPF has spent 3 billion baht in the first phase begun a few years ago and will need another 1 billion to make the other 201 subsidiaries compliant, he said.
The company's 282 farms, 17 feedmills and 24 food production units will follow green practices in the next 3-5 years.CPF first used natural gas and biomass to fuel its co-generation power plants in 2008, to accommodate its chicken processing plant in Saraburi province.
Since then, it has reduced greenhouse gas emissions by 344,000 tonnes and saved 1.26 billion baht in energy costs per year.
The company also claims to be the first integrated poultry business operator in the world to measure its carbon footprint for chicken products including raw chicken and semi-processed teriyaki.
To date, more than 100 individual CPF products have received the carbon footprint label.
As of last Thursday, 7 June, the Thailand Greenhouse Gas Management Organization has awarded the label to 487 products from 120 companies.
"We're working to have more products under the carbon trust in order to move more towards a low-carbon economy," said Mr Adirek.
He said farmers and suppliers in the supply chain will be encouraged to conform to green business models as well.
The improvement will help CPF to meet this year's sales target of 300 billion baht, up by 50 per cent from last year.
CPF shares closed on the Stock Exchange of Thailand at 36.75 baht, unchanged, in trade worth 539 million baht.