CP Group has a simple mantra: ‘Sustainability begins at home’
Charoen Pokphand Group’s Chief of Sustainability and Strategic Development Officer Dr. Teerapon Tanomsakyut unveils the group’s “next targets” to thrive on sustainability after achieving the world’s No. 2 position in the S&P Global Sustainability Yearbook 2024. Here are excerpts from his exclusive interview to The Nation.
What are the CP Group’s goals and commitment on sustainability?
Dr. Teerapon: We are in the “New World Order” where sustainability and business are integrated and cannot be viewed separately. Companies all over the world are expected to contribute an important part, because of their involvement in many dimensions and with many people in society.
Therefore, the CP Group has brought in this society’s overarching goal to become part of our objectives. And since this is not an easy task, our CEO, Khun Supachai Chearavanont, has given a direction that in achieving any target, we should demand a commitment from everyone in the organisation, instead of using a top-down command.
The implementation scope begins from our own premises (organisations), to our suppliers, vendors and customers. They include farmers and SMEs [small and medium-sized enterprises] whom we need to come in to help provide knowledge and build a network, with an aim to uplevel everyone together.
How are the CP Group of companies performing in relation to sustainability when compared to their global peers?
This year, CP Group is ranked as the second best industrial conglomerate in the world in terms of its sustainability performance. We are behind only SK Business Group in this category. Many CP Group companies are also ranked in the top tier within their sectors, including True Corporation Plc (top 1% in telecom), and Charoen Pokphand Foods (top 5% in food products).
Regardless of how we are ranked in comparison with others, the more important thing is to measure ourselves on how we are performing each year, on each aspect of sustainability and find the gaps where we can continue to improve.
Since environmental, social and governance (ESG) issues involve many stakeholders, it’s good to begin with certain KPIs and targets to ensure the process is transparent. The S&P Global Sustainability Yearbook provides a corporate sustainability assessment framework with which we can measure everyone on the same benchmark and learn from each other.
What are your next targets after achieving this No. 2 world ranking?
Even though we are now No. 2 in the industrial conglomerates category, we have to keep moving towards the goal as there are still a lot of challenges, and the benchmark will be elevated, as well as new issues added every year.
We also have to cascade the best practices from leaders in each sector to other companies in the group as well as drive sustainability practices as a network along our value chain from our suppliers on the upstream towards the end – our customers. We believe it’s also a duty of the private sector to help educate the consumers on sustainability concepts and practices.
Another key issue is to blend sustainability and business into an integral part of each other. Sustainability activities should not be viewed merely as an expense or a cost centre. Rather, companies can utilise them to their advantage while mitigating their enterprise risks, if they can foresee and leverage the emerging trends – digitalisation, decarbonisation, and deglobalisation – and align them to their business strategies.
Sustainability covers a wide range of issues. One important aspect is to develop the next-generation workforce. Under the CONNEX ED scheme, for example, every CP group executive is assigned to work with school principals around the country to help Thailand raise the bar in education. As a measure, student scores at more than 3,000 schools taking part in the scheme have improved remarkably over the years.
What are the key strengths of the group that assist it to score well on business and sustainability?
The CP Group’s sustainability practices are well aligned with the group’s “Three-Benefit” principle – creating benefits to the country, the people, and the group itself – wherever they operate.
Also, there is the group’s culture of always learning a new thing and adapting it for usage. When there is a new technology or a new business, the group is often among the first to explore the opportunity. This pioneering and learning spirit has helped us to expand our business around the world.
