Climate Change Management

Climate Resilience

Risks and Opportunities


Bringing together countries to join forces and drive countermeasures against climate change, a particular meeting of multilateral agreements would become known as another event of global significance, called the Conference of Parties (COP26) and was held in Glasgow, Scotland. At this conference, each country signed an agreement to collectively help reduce GHG emissions in order to control or reduce the global temperatures rise to below 2 degrees Celsius. If taken into effect, this agreement would drastically shape each country’s effort in combating climate change. Thailand is one of the top listing countries that is at risk of a climate change crisis, in specific, an eminent threat toward access to food, clean water and pure air that will lead to degradation of the ecosystem and may trigger conflict in the future. Additionally, added pressure from the demands of the private sectors is forcing the public sectors to announce the “Climate Emergency Declaration” in the future. The declaration will have a direct effect on the business sector and industries. Thus, preparation for these changes is necessary for all sectors in order to build consciousness in lowering or regulating the temperature and minimizing the business operation’s impact to climate change. In response, the Company has taken part reducing GHG emissions and has prepared itself for the country’s upcoming policy change by continuously and increasingly supporting GHG emissions reduction throughout the supply chain.

Performance Against Goal


2030 Goal

Carbon Neutral

To achieve Carbon Neutral by 2030 and Net Zero GHG Emissions by 2050

Performance Summary 2021

Total GHG Emissions (tCO2e) by Scope of Operation

CP ALL and Subsidiaries

Direct GHG emissions (Scope 1)

Indirect GHG emissions from energy consumption (Scope 2)

Only CP ALL

Direct GHG emissions (Scope 1)

Indirect GHG emissions from energy consumption (Scope 2)

Total GHG Emissions (tCO2e) by sources

CP ALL and Subsidiaries

Only CP ALL

GHG Emissions Intensity (Scope 1 and Scope 2) per Unit of Revenue (tCO2e per million Baht)

GHG Emissions Reduction (tCO2e)

Remark: Utilization of renewable energy comprises of electricity from solar energy, solar thermal energy and geothermal energy. *Electric vehicles in logistics is tested and piloted using 2 trucks in 2 month

Total GHG Emission by Energy Purchase

GHG (Scope 2) Unit FY2018 FY2019 FY2020 FY2021 Target 2021
Location-Based Metric tonnes of Co2 equivalents 1,24,897.14 1,218,051.27 1,189,392.79 1,126,211.63 1,139,438.29
Data Coverage (as % of Denominator) Percentage of: Revenue 96.45 96.08 95.46 95.52  
Market-Based Metric tonnes of Co2 equivalents 1,272,977.98 1,126,421.13 1,177,485.71 1,104,406.33 1,128,031.31
Data Coverage (as % of Denominator) Percentage of: Revenue 96.45 96.08 95.46 95.52  

“Reduction, capture and offset” of GHGs from the Supply Chain (tCO2e)

Usage of single-use plastic packaging

Donating excess surplus food

Planting trees

GHG offset

Registration on GHG emissions reduction

Other Indirect GHG Emissions by Group (tCO2e)

Management Approach


Several challenges lie in wait for the Company. These challenges include facing climate change on a global scale, transitioning into phase 2 of the sustainability strategy, setting goals to maintain the global temperature rise at 1.5 degrees Celsius and determining data on GHG emissions under Scope 1 and Scope 2 using 2020 as the base year for tracking operations in phase 2. In preparation, the Company has appointed a committee on sustainable development to oversee the management of actions against climate change and specific working teams, such as the energy efficiency and conservation team, the solar rooftop installation team, the green packaging development team, the planting team for sustainable communities, the excess food management team and the GHG management team. Each of these teams have adopted an GHG accounting system to meet international standards in measuring and reporting emissions and in reducing the organization’s GHG emissions according to the ISO 14064-1 standard of 2018. The Company has proceeded to emphasize the importance of climate change management under the “7 Go Green” Strategy. Additionally, the Company has established a framework for actions against climate change, which is an approach for business operations to take responsibility for climate change throughout the supply chain. Finally, the Company’s efforts have been aligned with the Task Force on Climate-related Financial Disclosures (TCFD) to achieve Carbon Neutral by 2030 and Net Zero GHG Emissions by 2050. The aforementioned initiatives are a reflection of the will to maintain the global temperature rise to below 1.5 degrees Celsius and are in alignment with the Paris Agreement and Science-based Targets (SBT). Furthermore, these initiatives are in collaboration with all stakeholders throughout the supply chain and apply the concept on “Reduction, Capture and Offset” of GHG emissions in various projects, such as the reduction of single-use plastic packaging and utilization of alternative energy or renewable energy. The initiatives extend to actions supporting all sectors in efficiently driving the Company’s operations to achieve its goals and to start managing GHG emissions under Scope 3.

Climate Change Management Framework

Sustainability Goals towards 2030 Climate Resilience and Adaptation

It is an ongoing effort to tackle climate change, an issue that requires the corporation of the global population, the Company has studied and used data from leading institutions across the globe, which the information is the basis, for developing sustainability goals. Therefore, to increase operational challenges and in accordance with the determination to deliver happiness and opportunities for society, the Company has set a target in carbon emission from the Company’s operations to be Net Zero Carbon by 2030 and intends to cooperate and control the rising global temperatures to be within 1.5 degrees Celsius in accord to the GHG reduction targets under the Paris Agreement based on the Science-based Targets (SBT). It is a challenge to maintain the balance between business growth and reducing carbon dioxide emissions. The Company supports the operations throughout the supply chain to enable all sectors to participate in supporting and taking part in driving goal achievements, which require cooperation from all parts of the globe, to strongly expand these actions further to achieve these goals.

The company analyzes the greenhouse gas emissions and sets a long-term reduction target (2020 – 2030) “for more details

Risk and Opportunity Assessment on Climate Change

In order to find suitable ways for adapting to climate change, the Company has conducted an assessment of risks and opportunities that may ensue from climate change and the impact to the operations of each department under the Company. The assessment is conducted and evaluation under of the risk assessment committee, approval and governance under of the corporate sustainable development and governance committee to ensure full disclosure of information regarding climate change risk management for stakeholders. The committees in turn apply the reporting framework of the Task Force on Climate-related Financial Disclosure (TCFD) to devise effective risk mitigation plans for climate change.

In 2021, the Company pinpointed significant risks and opportunities related climate change along with countermeasures, as follow.

Risk Impact to the Value Chain


Inundation

Impact to the Business Impact to the Value Chain
  • Interruption to production processes
  • 7-Eleven Interruption to services provided by 7-Eleven stores
  • 7-Eleven staff experience flooding
  • Decreased income of 4,383 million Baht
    due to fewer sales at 7-Eleven stores
  • 7-Eleven interruption to product delivery to 7-Eleven stores
  • 7-Eleven customers are unable to access 7-Eleven stores and select products
  • Communities surrounding 7-Eleven stores experience
    flooding
Countermeasures

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.

  • Before the event (prevention and preparation) At this stage, relevant departments will closely monitor weather conditions and conduct a risk assessment of the situation so that store staff can prepare to move equipment and goods to a safe location. Additionally, equipment is prepared to prevent water from entering 7-Eleven stores. Equally important, facilities are provided to store staff to make the situation more convenient in case of flash floods
  • During the event (Response)
    – If a flood occurs in the vicinity of a 7-Eleven store, staff must be on alert for the possibility of water entering the store and be ready to move equipment and goods to a safe location. Staff must also report the situation to the flood response center
    – If water has flooded into a 7-Eleven store, staff must turn on the pump to drain water out from the store and prepare to safely evacuate to designated evacuation points
    – If the flood height exceeds 30 cm or a flash flood occurs at a 7-Eleven store, staff must evacuate to designated assembly points and prepare first aid for injured staff. Support in the form of food, beverages and temporary accommodation will also be provided to affected staff
  • After the event (Restoration and remediation) The Company will check equipment and restore the damaged 7-Eleven store. In the same time, the Company will provide care to affected staff according to the Company’s welfare services, provide survival kits to others who are affected and support the community


Drought / Salinization

Impact to the Business Impact to the Value Chain
  • Lower production and product quality
  • Shortage of agricultural products and raw material
  • Increased expenses of 44 million Baht for restoring equipment damaged by scale and rust
  • Lower agricultural yield and scarce raw material from partners
  • Consumers may be contract intestinal ailments from
    consuming products that are not of standard quality
Countermeasures
  • Order water reserve tanks to store reserve water and use it to produce drinking water and general usage water in affected areas or in areas experiencing a water shortage longer than 1 week
  • Order general usage water to preserve water that is used specifically for producing beverages in areas experiencing water shortage or poor water quality
  • Install a reverse osmosis (RO) system to treat water that does not meet standard quality, such as salinity and hardness, in areas with brackish water, e.g., coastal areas, or in areas that use ground water with high levels of hardness
  • Install an air-water system to draw water from the air and treat it to produce quality water for 7-Eleven stores in areas with water shortage or in areas with high humidity
  • Share knowledge with farmers to prevent a shortage of essential raw material for production. Experts will provide advice starting from conditioning the soil for agriculture, agricultural processes, trimming, separation and suitable greenhouse positioning. In parallel, the scope of knowledge sharing encompasses the utilization of technology to lay out
    a network of sensors for automating water control, online data collection and monitoring produce
  • Allocate treated water to farmers around the factory to prevent a shortage of essential raw material for production. The treated water from the factory’s natural water storage ponds must meet quality standards stipulated by the law.
Risk Impact to the Value Chain


Regulations on Plastics

Impact to the Business Impact to the Value Chain
  • Increased expenses of 215 million Baht for procuring raw material substitutes
  • Improved reputation for plastic waste management GHG
    emissions reduction
  • Stakeholders place their confidence in the Company’s plastic waste management
  • Partners, consumers and communities are supported in reusing plastic waste
Countermeasures

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


Marketing

Impact to the Business Impact to the Value Chain
  • Expenses from investing and developing low carbon and green packaging
  • Innovations on low carbon packaging
  • Penetrating new customer markets
  • Increased market share for the business and generated income and profits to grow the business in the long term
  • Stronger reputation for services that support GHG emissions reduction
  • Stakeholders have a positive perception of the Company’s brand
  • Consumers are encouraged to select low carbon and green
    products
Countermeasures
  • Develop green products and place importance on the reduction of GHG emissions from production processes starting from the procurement of raw material until production, logistics, usage and disposal
  • Gain consumers’ acknowledgement through certification of a product’s carbon footprint from the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO).


Reputation

Impact to the Business Impact to the Value Chain
  • Lower demand for goods and services from negative
    perceptions of the Company
  • Stakeholder expectations for the products, services and business approach may influence the brand’s reputation
  • Stakeholders have a positive perception of the Company’s brand
  • Consumers are encouraged to select low carbon and green
    products
Countermeasures
  • Establish green policies and targets for business operations
  • Establish the “7 Go Green” Strategy and projects to drive environmental goals
  • Adopt the Green Marketing Strategy to the business
  • Continuously arrange marketing activities or campaigns for the environment, such as the Thais United Against Plastic Bags
    Project.

7 Go Green Strategy

The Company has implemented plans to reduce GHG emissions under the “7 Go Green” Strategy and build environmental sustainability in communities, the society and the country. Some of these various implementations are on the reduction of energy consumption and the reduction and elimination of plastic bags at 7-Eleven stores. Emphasis is placed on achieving results on the reduction of GHG emissions while transparently and consistently communicating the results of these environmental implementations to stakeholders and raising awareness on environmental issues in communities and the society. Additionally, all actions can be tracked under the Carbon Disclosures Project (CDP), which applies the following 4 approaches.

Furthermore, the Company has implemented carbon offsetting activities to become carbon neutral through the following initiatives.

The Participation in the Thailand Voluntary Emission Reduction (T-VER) Program

The Company participated in and supported the GHG emissions offset program with the purpose of creating flow in the carbon credit market and reducing the country’s GHG emissions. In order to do so, it opened an account with the Thailand Greenhouse Gas Management Organization (Public Organization) and purchased and offset carbon credits worth 2,795 tCO2e. As a result, the Company was able to reduce the GHG intensity per unit revenue (million Baht) of 2020 to 10% of the base year 2015, which is considered a substantial step toward sustainability and social responsibility.

The Registration and Certification of GHG Emissions Project

CP ALL Plc. implemented the solar rooftop project a distribution centers in 18 areas to support the generation of clean electricity and reduce electricity consumption from the grid. The project provided a capacity of 6,106.56 kW and was commissioned on 1 September 2019. This project installed a total of 18,232 panels with each panel sized at 330 W. The project was designed to generate electricity 365/366 day/year and earn a credit of 55,030,975 kWh, which will power the distribution centers. Originally, the space for the solar rooftop was empty and not utilized for any benefit. Previously, electricity was supplied by either the Provincial Electricity Authority or the Metropolitan Electricity Authority. The estimated GHG emissions reduction for the duration of the project’s carbon credit is calculated at 26,811 tCO2e or equivalent to an average of 3,830 tCO2e per year.

Impacts and Benefits


The Solar PV Rooftop project at the Distribution Centers of CP ALL Plc. has been accredited for its amount of GHG emissions by the Thailand Voluntary Emission Reduction (T-VER) Program during the carbon credit cycle from 1 July 2020 to 30 June 2021. The amount of emissions was

3,622 tCO2eq

as calculated by the Thailand Greenhouse Gas Management Orgnization (Public Organization) during the 8th GHG management committe meeting in 2021 (8/2021) on Thursday, 26 August 2021

The Green Product Development and Procurement Project

CPRAM Co., Ltd. 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 2021, the Company registered 6 products for the carbon footprint product label and registered 5 products for the carbon footprint reduction label.

Other Information


Performance Data of Climate Resilience

GRI Standared Required Data Unit 2018 2019 2020 2021
305-2 (a) Total GHG emissions tCO2e 1,494,142.68 1,431,281.28 1,409,284.38 1,409,743.49
305-1 (a) Direct (Scope 1) GHG emissions tCO2e 221,164.70 214,860.15 231,798.67 305,337.16
  – Fugitive emissions tCO2e 175,884.12 176,066.41 194,816.37 268,524.34
  – Methane from wastewater treatment tCO2e 3,253.40 3,724.42 819.66 1,230.88
  – Stationary combustion tCO2e 32,229.46 25,468.24 26,388.44 25,900.37
  – Mobile combustion tCO2e 9,797.72 9,021.92 9,253.95 9,006.87
305-1 (c) – Biogenic combustion tCO2e N/A 579.15 520.25 674.69
305-2 (a) Indirect (Scope 2) GHG emissions tCO2e 1,272,977.98 1,216,421.13 1,177,485.71 1,104,406.33
  – Electricity purchased tCO2e 1,272,977.98 1,216,421.13 1,177,485.71 1,104,406.33
  GHG reduction from alternative energy consumption tCO2e 744.48 2,491.45 12,269.05 22,172.73
305-4 (a) Direct and indirect (Scope 1 and Scope 2) per revenue unit tCO2e million Baht 2.83 2.51 2.57 2.40
305-3 (a) Other indirect (Scope 3) GHG emissions tCO2e N/A 1,274,754.60 1,412,920.47 10,223,203.53
  – Purchase goods and service (plastic packaging) tCO2e N/A 231,528.50 137,739.12 102,584.90
  – Purchase goods and service (product) tCO2e N/A N/A N/A 9,419,907.12
  – Upstream transportation and distribution tCO2e N/A 90,128.25 141,122.76 197,321.23
  – Waste generated in operations tCO2e N/A 192,510.20 68,003.90 53,440.32
  – Business travel (by planes) tCO2e N/A 2,588.75 793.62 141.36
  – Processing of sold products (electronic equipment) tCO2e N/A 741,535.40 1,052,100.15 174,435.88
  – End-of-life treatment of sold products (Golden banana) tCO2e N/A 13,528.70 10,226.12 10,108.25
  GHG reduction from decreased consumption of single use plastic bag tCO2e 4,945.97 33,222.39 85,212.55 265,268.48