Climate Resilience
Key Performance in 2022
GHG emissions reduction, capture and offset
387741 tCO2e or equivalentto sustainably planting
9017243 treesRated as an A or equivalent to Leadership Level in climate change by CDP
CP ALL received an “Excellence” level award from the Low Carbon and Sustainable Business Index (LCSB) Program
Lotus’s received an outstanding award as a retail of sustainable environmentally friendly excellence
Certified ISO : 14064-1 for Bang Bua Thong temperature controlled distribution center
Registered for Carbon Product Footprint for Organization by Thailand Greenhouse Gas Management (TGO)
Key Progress in 2022
Participated in setting the Company’s science-based target for validation process according to Science Based Targets initiative (SBTi) framework
Participated CDP Project in climate change for the 4th consecutive year
Participated in Low Carbon and Sustainable (LCSB) assessment for the 2th consecutive year
Assessed climate change risks according to the Task Force on Climate-Related Financial Disclosures (TCFD)
Built engagement with suppliers and customers in environmental impact minimization
Submitted for certification of ISO : 14064-1 for Bang Bua Thong temperature controlled distribution center
Supporting the SDGs
Performance Against Goal
2030 Goal
Carbon NeutralTo achieve Carbon Neutral by 2030 and Net Zero GHG Emissions by 2050
Progress against short-term and long-term goals
Remark : exclude indirect GHG emissions (Scope 3) *With the assumption for business as usual growth of 5% per year
Performance Summary 2022
Total GHG Emissions by Scope of Operation
CP ALL and Subsidiaries
Direct GHG emissions (Scope 1)
Indirect GHG emissions from energy consumption (Scope 2)
Indirect GHG emissions (Scope 3)
Only CP ALL
Direct GHG emissions (Scope 1)
Indirect GHG emissions from energy consumption (Scope 2)
Indirect GHG emissions (Scope 3)
Total GHG Emissions by sources
CP ALL and Subsidiaries
Electricity purchased externally
Diesal
Benzene
Natural gas and Liquefied Petroleum gas
Biofuel combustion
Refrigerant
Methane from the wastewater treatment system
Only CP ALL
Electricity purchased externally
Diesal
Benzene
Natural gas and Liquefied Petroleum gas
Biofuel combustion
Refrigerant
Total GHG Emissions by per energy purchases
GHG emissions (Scope 2)
Location-Based
Data Coverage (as % of Denominator)
Market-Based
Data Coverage (as % of Denominator)
GHG Emissions Intensity (Scope 1 and Scope 2) per Unit of Revenue
GHG Emissions Reduction
Energy efficiency improvement
Renewable energy utilization
Remark: Utilization of renewable energy comprises of electricity from solar energy, solar thermal energy and geothermal energy.
Refrigeration and refrigerant system improvement
Electric vehicles in logistics
Remark: Electric vehicles in logistics is tested and piloted using 5 trucks and 1,004 motorcycles in 12 month
Reduction, capture and offset” of GHGs from the Supply Chain
Usage of single-use plastic packaging
Donating excess surplus food
Planting trees
GHG offset
Registration on GHG emissions reduction
Indirect GHG Emissions (Scope 3) by Group (tCO2e)
Upstream activities
Downstream activities
Risks and Opportunities
The UN Conference of Parties of the UNFCCC (COP26) in Scotland in 2021 pledged to limit global warming to no more than 2 degrees Celsius. Thailand is considered one of the countries with high risks of climate change impacts, which include threats in accessibility to food, clean water and clean air, as well as deterioration in ecosystems, resulting in various forms of conflicts. In 2022, the UN Conference of Parties of the UNFCCC (COP27) in Egypt’s objective was to agree on the compensation management for countries affected by impacts of global climate change, the founding of carbon credit market, and setting the phasing out volume of each member country’s coal-based energy use. Furthermore, the pressure from private sector and independent entity resulted in the governments’ Climate Emergency Declaration, affecting the industries and private sector. This means the latter must anticipate and prepare for changes, conducting business in ways with minimized impacts to global temperature change. Notably, the Company is cognizant of climate change impacts induced from business activities. These impacts may
affect stakeholders’ livelihood, health and safety throughout the supply chain, such as air pollution affecting workers’ health and safety, long-term impacts on communities in the vicinity, as well as impacts of droughts and floods alike to suppliers. The Company is part of the efforts to reduce greenhouse gas emission and prepared for Thailand’s future policy change, by providing continuous support and facilitate greenhouse gas emission and intensity reduction throughout the value chain.
Management Approach
The Company set for Sustainable Development and Climate Change Governance sub-committee, as well as a specialist working group, such as energy conservation and efficiency enhancement team, solar energy installation team, green packaging team, and perennial tree plantation team for communities. These teams act in various roles assigned to prepare for climate change resilience under the “7 Go Green” strategy. They also establish a working framework and management approach in conducting business responsibly with considerations to climate change throughout the value chain. This is in alignment with Task Force on Climate-related Financial Disclosures (TCFD) with the aim to decrease greenhouse gas emission from business conducts according to the Net Zero Emission goal in The Company set for disclosure of Net-zero Commitment with the scope encompassing the management of 3 greenhouse gases scopes, from direct emission (scope 1), indirect emission from energy consumption (scope 2), and other indirect emission (Scope 3. Furthermore, the Company is also in the process of setting corporate net zero emission for validation according to Science Based Targets initiative (SBTi).
Furthermore, the Company is committed to limiting the average global temperature to no more than 1.5 degrees Celsius, which is in alignment with Paris Agreement’ s greenhouse gas emission reduction. The Company organizes various activities to offset greenhouse gas emission, such as increasing alternative energy or renewable energy, and in reducing single-use plastics, to name a few. This includes promoting all sectors’ participation to achieve climate change goals effectively.
Climate Change Management Framework
Management System for Lobbying Activities and Trade Association Memberships
CPALL is one of climate action initiator member of the Thailand Carbon Neutral Network (TCNN) which promotes networking and collaboration among private sector, public sector, and local sectors/communities to;
TCNN was initiated by Thailand Greenhouse Gas Management Organization (Public Organization) who has mission to promote GHG emission reduction programs in a drive towards Net Zero aligned with the goal of the Paris Agreement. According to CPALL’s climate change management framework (https://www.cpall.co.th/en/sustain/environmental-dimension/climate-change-management, under Climate Change Management Framework). In support and promote of its framework, CPALL holds memberships in association that provide the company expert assistance and offering consultations in collaboration with associations. In August 2022 & January 2023, the TCNN organized its first Carbon Neutral Thailand membership meeting and sub-committee meeting to discuss strategies and operational plans of the network on a regular basis, as well as advocate the initial stage of GHG emission reduction-related policy to request supporting from government. In the meantime, during the session CPALL had provided an opinions and showed an interested in topics as well as supporting activities from TCNN.
CPALL’ s governance for public policy engagement will be with the executive level of its policy related division, whose accountability is to engage with policy maker through trade association membership to drive the nation’s climate agenda. CPALL will also assess, and regularly monitor trade association objectives to ensure alignment with its commitments.
In case of misalignments exists between association’s objectives and its comments, CPALL will investigate and address where the misalignments have been exposed, the membership may be ceased after the investigation.
The management system to align the trade association memberships with the Paris Agreement will cover all jurisdictions where CPALL has operations.
Climate change risk and opportunity assessment
The Company has set up Enterprise Risk assessment Committee to evaluate potential risks, impacts, and opportunities relating to climate change, which may affect the Company’s business conduct. Notably, each risk factor would then be approved by Sustainability and Corporate Governance Committee to disclose climate change risk management to stakeholders in accordance with Task Force on Climate-related Financial Disclosure (TCFD). Additionally, this enables an efficient development of climate change risk action plan.
Task Force on Climate-related Financial Disclosure (TCFD)
In 2022, the Company pinpointed significant risks and opportunities related climate change along with countermeasures, as follow:
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The Company has designed protective measures for 7-Eleven stores to withstand damage from floods under the concept of “Stores Combating Water”. Under this concept, various aspects were considered, such as high walls, floor designs, doors that can hold against the force of water, piping system and pumps. In the event of a flood, the Company has devised management plans in 3 stages, as follow.
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Impact to the Value Chain |
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The Company has prepared its readiness and developed its plastic waste management roadmap from 2018 to 2030 by applying the Extended Producer Responsibility (EPR) Framework. The roadmap was established to drive the reduction of pollution caused from plastics and shape the Company as a leader in reducing the use of plastic bags and single-use plastics through various plastic management projects, such as placing a symbol on products made from recycling, plastic reduction and discontinuation, and a project to recycle plastic waste into 7-Eleven bags |
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7 Go Green Strategy
7 Go Green strategy aims to build environmental sustainability to community, society and the country. This was achieved through various projects, such as energy consumption reduction, green logistics and distribution, reduce, stop and sort post-consumption plastic packaging. Therefore, helps reduce greenhouse gas emission, educate communities on environmental topics, as well as communicating environmental performance to stakeholders continuously. The performance can be verified through CDP. The 7 Go Green strategy has 4 approaches when it comes to environmentally friendly initiatives, as follows:
Green Store
The Company aims to find equilibrium between conservation and consumption of resource, as well as reuse of energy according to circularity principle. This is applicable to ensuring building design, construction, and energy management is all environmentally friendly, as well as improving electrical systems and appliances to reduce greenhouse gas emission. Coverage includes 7-Eleven stores, Makro distribution centers, Lotus’s and manufacturing plants through projects in support of the strategy, as follows:
Impacts and Benefits
Reduced energy consumption
Reduced GHG emissions
equivalent to planting
Green Logistic
Develop green product distribution center for designing, logistics and distribution of products to customers through projects in support of strategy, as follows:
Impacts and Benefits
Reduced energy expenses
Reduced GHG emissions
equivalent to planting
Green Packaging
Plan packaging management encompasses design, usage, and sales, as well as disposal, and recycling. It includes providing convenience to customers, increase sales to the Company, as well as foster engagement in natural resource conservation throughout the value chain. There are 3 approaches, as follows:
Impacts and Benefits
Reduced plastic usage
Reduced paper usage
Reduced amount of waste generated through sticker, straws and paper wrapped straws usage
Reduced GHG emissions
equivalent to planting
Green Living
Collaborated with customers, communities, NGOs, governmental agencies, local and international organizations alike, to conduct diverse projects instilling environmental consciousness, delivery
sustainable and good livelihood to communities.
Impacts and Benefits
Waste segregation
Reduce food waste to land fill
The Accumulated number of trees Planted
Donated over
of surplus food
Reduced GHG emission
or equivalent to planting (Calculated by providing excess food to the Foundation)
Furthermore, the Company has implemented carbon offsetting activities to become carbon neutral through the following initiatives.
The Green Product Development and Procurement (continuously) Project
CPRAM Co., Ltd. And CP ALL Public Company Limited supports environmentally friendly products and places great importance on reducing GHG emissions in production. This is achieved by evaluating emissions and GHG reductions from each product throughout the product life cycle. All steps are evaluated starting from the procurement of raw materials, product processes, delivery, usage and disposal. In addition, its carbon footprint has been registered with the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO). In 2022, the Company registered 6 products for the carbon footprint product label and registered 5 products for the carbon footprint reduction label
generate sales of over 844 million Baht.
Communicate, Educate, and Raise Awareness
The Company communicated and raised awareness of the energy conservation, the environment, and climate change for management and employees, both in the offices, operations and distribution center, inclusive to companies in CP ALL Group. Instilling environmental awareness and delivering sustainable well-being for communities. The public relation media is created to proactively educate through various channels, accessing target groups via both online and offline channels, such as.
In 2022, training were organized for 118,190 employees across the country. Furthermore, the Company conducted an assessment to evaluate all levels of employees’ sustainability understanding of CP ALL business group. 100% of employees have demonstrated comprehension and understanding.
Climate-Related Management Incentives
| details on the climate change-related incentives starting from the highest management level | Incentivized KPIs |
| Chief Executive Officer (CEO) One of the goals that indicates a special bonus for the CEO is achieving great scores on the Dow Jones Sustainability Index (DJSI), which evaluates the effectiveness of the company's operations in accordance with its sustainable development objectives. |
Overall sustainability program’s performance including the climate performance (Dow Jones Sustainability Index (DJSI) scores) is one of the CEO’s KPIs. |
| Executives Officers: Example 1.Senior Vice President, Corporate Asset and Facilities Management is entitled to monetary incentive from energy efficiency management. His KPI is directly tied with over all facilities’ store energy reduction with 10% weight. The SVP is also responsible for driving innovative energy management at stores and increasing proportion of renewable energy in energy portfolio. The SVP also leads energy conservation committee whose KPIs are tied with “energy reduction and efficiency performance” cascaded from the Corporate Sustainability KPIs. 2.Assistant Vice President, Social and Environmental Management is entitled to monetary incentive from GHG emissions reduction. His KPI is directly tied with over all GHG emissions reduction and Promote Green product with 40% weight. The AVP is also responsible for driving innovative GHG emission management. The AVP also leads 7 Go Green committee whose KPIs are tied with “Carbon Neutral by 2030 and Net Zero GHG Emissions by 2050” cascaded from the Corporate Sustainability KPIs. The KPIs of other executives are also tied with a pool of KPIs that links with Corporate Sustainability KPIs to drive performances across functions. |
Overall facility store energy reduction is weighted 10% for Senior Vice 1.President of Corporate Asset and Facilities Management department. Moreover, energy reduction and efficiency performance are also the KPIs of our Energy Conservation Committee. The target and goal have been cascaded and collaborated with other functions i.e. purchasing department and operation department. 2.Overall facilityGHG emissions and Promote Green product is weighted 40% for Assistant Vice President of Social and Environmental Management department. Moreover, GHG emissions and Promote Green product performance are also the KPIs of our 7 Go Green Committee. The target and goal have been cascaded and collaborated with other functions i.e. purchasing department and operation department. |
| Business Unit Managers: Example
1.Business Unit Managers are entitled to monetary incentive from energy reduction and efficiency performance. Their KPIs i.e. energy reduction and efficiency performance are cascaded from the Corporate Sustainability KPIs. Furthermore, Business Unit Managers who take part in Energy Conservation Committee also have the KPI directly tied with Corporate Sustainability Score (derived from DJSI score). 2.Business Unit Managers are entitled to monetary incentive from GHG emissions reduction performance. Their KPIs i.e. GHG emissions reduction performance are cascaded from the Corporate Sustainability KPIs. Furthermore, Business Unit Managers who take part in 7 Go Green Committee also have the KPI directly tied with Corporate Sustainability Score (derived from DJSI score). |
1.Achievement of individual KPIs on “energy reduction and efficiency performance” will contribute to the incentives of Business Unit Managers. Furthermore, if the energy reduction and efficiency performance targets are achieved, members of the Energy Conservation Committee will also be rewarded with monetary incentive. 2.Achievement of individual KPIs on “GHG emissions reduction performance” will contribute to the incentives of Business Unit Managers. Furthermore, if the GHG emissions reduction performance targets are achieved, members of the 7 Go Green Committee will also be rewarded with monetary incentive. |
Other Information
Taxonomy
Thailand is making strides towards environmental sustainability through the development of a Sustainability Taxonomy Framework (Thailand Taxonomy). The objective is to classify activities as environmentally-friendly, with a focus on reducing disparities in each sector's ability to transition towards environmental sustainability. Climate change mitigation is the primary environmental objective, and the framework will consider transparent conditions and indicators that are in line with Thailand businesses' early-stage status and ability to adopt.
The Thailand Taxonomy Board will issue specific details for each economic sector gradually, depending on necessity and urgency, taking into account each sector's potential impact and readiness to adapt. The Energy and Transportation sectors will be classified in the beginning phase. For later phases, it is planned that further specific details for the Agricultural, Industrial, and other economic sectors will be issued. Meanwhile, the Thailand Taxonomy will also focus on achieving consistency with the ASEAN taxonomy and comparability to other standards of other countries in the ASEAN region.
However, as CPALL is Food & Staples Retailing sector, we are willfully waiting for an updated from Bank of Thailand (BOT) who conducted the Thailand Taxonomy Board, and aims to establish a principle-based taxonomy in other phases which’s includes Food & Staples Retailing sector."
See more information: detail of Thailand Taxonomy Framework in Bank of Thailand website : https://app.bot.or.th/landscape/en/green/directions/taxonomy/
Performance Data of Climate Resilience
| GRI Standard | Required Data | Unit | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| 305-2 (a) | Total GHG emissions | tCO2e | 1,431,181.28 | 1,808,509.72 | 1,778,726.26 | 1,936,757.61 |
| 305-1 (a) | Direct (Scope 1) GHG emissions | tCO2e | 214,860.15 | 236,045.11 | 324,357.53 | 435,377.38 |
| - Fugitive Emissions | tCO2e | 176,066.41 | 194,989.93 | 277,558.52 | 384,212.73 | |
| - Methane from wastewater treatment | tCO2e | 3,742.42 | 819.66 | 1,230.88 | 556.81 | |
| - Stationary combustion | tCO2e | 25,468.24 | 30,428.86 | 29,598.88 | 30,645.31 | |
| - Mobile combustion | tCO2e | 9,021.92 | 9,253.95 | 14,834.57 | 18,575.28 | |
| 305-1 (c) | - Biogenic combustion | tCO2e | 579.15 | 552.71 | 1,134.68 | 1,387.26 |
| 305-2 (a) | Indirect (Scope 2) GHG emissions | tCO2e | 1,216,421.13 | 1,572,464.61 | 1,454,368.73 | 1,501,380.23 |
| - Electricity purchased | tCO2e | 1,216,421.13 | 1,572,464.61 | 1,454,368.73 | 1,501,380.23 | |
| GHG reduction from alternative energy consumption | tCO2e | 2,491.45 | 11,851.72 | 31,149.16 | 53,982.19 | |
| 305-4 (a) | Direct and indirect (Scope 1 andScope 2) per revenue unit | tCO2e per million Baht | 2.51 | 3.31 | 3.03 | 2.27 |
| 305-3 (a) | Other indirect (Scope 3) GHG emissions | tCO2e | 208,627.65 | 243,095.87 | 13,131,498.28 | 13,191,694.60 |
| - Purchase goods and service | tCO2e | N/A | N/A | 12,824,060.79 | 12,525,820.40 | |
| - capital goods | tCO2e | N/A | N/A | N/A | 47,305.39 | |
| - Upstream transportation and distribution | tCO2e | 90,128.25 | 141,122.76 | 197,321.23 | 268,798.35 | |
| - Waste generated in operations | tCO2e | 192,510.20 | 90,956.37 | 99,866.65 | 90,303.47 | |
| - Business travel (by planes) | tCO2e | 2,588.75 | 793.62 | 141.14 | 2,077.74 | |
| - employee travel | tCO2e | N/A | N/A | N/A | 153,865.70 | |
| - Downstream transportation and distribution | tCO2e | N/A | N/A | N/A | 94,192.64 | |
| - End-of-life treatment of sold products (Golden banana) | tCO2e | 13,528.70 | 10,226.12 | 10,108.25 | 9,330.91 | |
| GHG reduction from decreased consumption of single use plastic bag | tCO2e | 33,222.39 | 85,212.55 | 265,268.48 | 250,615.62 | |
| Percentage of the stores that have been designed or renovated for mitigating flood comparing to total store locating in flood risk areas | Percentage | N/A | N/A | 52 | 52 |
Related Policy and Guideline
| CDP Report 2023 | Download |
