Sustainable Raw Material Sourcing - บริษัท ซีพี ออลล์ จํากัด (มหาชน)

Management Approach

The Company is steadfast in responsible operations towards all stakeholders. Under the policies spanning from sustainable procurement to ethics and business supplier guidelines. The criteria for supplier selection include supplier capacity and compliance with the relevant law and regulations. The Company promotes and supports its suppliers and develops supplier capability through procurement and responsible supply chain management in order to fulfill the constantly changing needs and expectation of customers, communities and society. Additionally, there have been support for additional agricultural product and organic product sales channels while taking into account the appropriate distance from farms to point of sales to preserve product freshness and development of work processes to reduce environmental impact. Furthermore, the Company realizes the importance of product traceability in order to promote sustainable raw material usage throughout the various projects.

Supplier’s Sustainability Management Processes

Procure and screen capable suppliers, in accordance to relevant laws and regulations and consideration of

– Prodcuction Capacity
– Quality
– Food Safety
– Traceability
– Sustainability Performance

Suppliers’ Risk Assessment

Foster and promote suppliers’ capability in responsible sourcing and supply chain management including Continuously assessing suppliers’ sustainability performance

Build and maintain a long-term relationship with suppliers, in alignment with sustainable development approach. Support to remunerate good performance, including sustainability performance

In 2023, the Agricultural products and animal products certified by external organizations were as follows:

International Standards Certification for Sustainable Production, Quality, and Food Safety
Agricultural crop	Certification or accreditation	The coverage of products certified	Purchasing volume vs. total raw material procurement
Palm	RSPO	42.55%	26.65%
Soybean	RTRS, Proterra, CRS	77.04%	11.37%
Sugar	BONSUCRO	37.05%	11.32%
Cocoa	Fairtrade, UTZ, FSS C22000, GAP	8.16%	1.15%
Coffee	UIRTAC, SRP, BRC, Global GAP, GAP	35.40%	3.18%
Cereal	GAP	30.95%	23.85%
Other products	GAP, Q Organic	2.93%	22.47%

Certification of Animals Products Adhering to Animal Welfare Standards
Animal products	Certification or accreditation	The coverage of products certified	Purchasing volume vs. total raw material procurement
Aquatic products	ASC, BAP, BRC, GAP	38.39%	14.01%
Cattle products	BBFAW, Livestock OK, GAP	28.54%	1.96%
Dairy products	Rainforest Alliance, Food Alliance Certificated, RAWMI, Codex Alimentarius, AAWCS, Fairtrade, GAP	41.79%	12.65%
Pig products	AAWCS, BBFAW, Livestock OK	81.09%	33.10%
Poultry products	AAWCS, BBFAW, Livestock OK, BRC, GAP	98.09%	25.15%
Marine products	MSC, BRC, MarinTrust, GDST, GAP	50.73%	13.13%

Sustainable Agriculture Commitment (Food Availability)

1. Programs to reduce water consumption
1.1 No-till/conservation agriculture in rained areas	Banana planting project using old shoots to reduce tillage 1 to 2 times per year. Target Group : Northeastern farmers 42 farmers Total project area of 338 rai Impact : Reduce tillage costs by 13.20% of production costs
1.2 Management and technology	The banana plot plastic cover project uses plastic mulch to retain moisture and reduce herbicides and insecticides usage through using Beauverlia and Metarizium alternatives, a natural fungus which eliminates worms and insects. Target Group : Northeastern farmers 42 farmers Total project area of 338 rai Impact : Reduced water consumption by 50% Reduced herbicide usage by 100% Reduced insecticide usage by 100%
2. Programs to reduce environmental pollution
2.1 Production of organic products	Organic vegetable project to promote organic salad vegetable agriculture. Target Group : Organic salad products, 5 SKUs Easy Fresh Brand Organic Green Oak Salad Vegetables, Organic Red Oak Salad Vegetables, Organic Green Cos Salad Vegetables, Organic Mixed Salad Vegetables, ready-to-eat Organic Green Cos Salad Vegetables Impact : Reduced chemical usage, including Carbaryl, Difenoconazole, Abamectin, etc. by 100%
2.2 Use of "smart" pesticides	The project of traps for insects that plant plants for the plant and to select specific chemicals. Target Group : Vegetable product Impact : Reduce the chemical usage by 30%
2.3 Enclosed production systems: aquaculture	Biological Fish Farm Project towards Sustainability encourages suppliers to raise catfish and tilapia in a fully closed system capable of maintain quality controls, cleanliness, safety, traceability in every step, and production controls to reduce production challenges from water crisis and reduce wastewater release into public water sources. Target Group : catfish and tilapia farmers
3. Programs to protect soil health
3.1 Low frequency and intensity of tillage	Banana planting project using old shoots to reduce tillage 1 to 2 times per year. Target Group : Banana farmers Impact : Reduced tillage costs by 20%
4. Programs to prevent the destruction of ecosystems
4.1 Certifications that ensure deforestation-free production	Impact : A total of 14000 product items can be traced, covering 100% of the products under the aro brand
4.2 MSC or ASC certifications which ensure sustainable production	ASC or MSC Certified Products Project relates to the sourcing of premium seafood products from fishery sources certified to uphold stipulated quality and standards. The Company sources excellent quality seafood products that meet sustainable Fisheries standards under the Ocean Gems product brand from Indoguna Lordly, a subsidiary of Makro which received accreditation from the Marine Stewardship Council (MSC) and Aquaculture Stewardship Council (ASC). This accreditation is widely recognized by world-class experts as the best criterion for sustainable and responsible fisheries standards. The Company aims to expand the scope of seafood products certification to all countries where they are distributed. Impact : In 2O23, the company purchased a range of seafood products with MSC and ASC certification. The total amount was 4888 million Baht accounting for 72.68% of the total purchase of aquatic products
5. Programs to reduce GHG emissions
5.1 Reduced transport distances through	Agricultural Product Purchase at Source Project aims to source products locally and encourage crops to be farmed around the point of purchase vicinity in addition to delivery of goods to the nearest warehouse. Target Group : Farmers and packaging facilities Impact : Established purchase locations in communities for over 1700 persons throughout the country
5.2 Local products offerings in retail	This project to support the distribution of local products from the community or One Tambon One Product in 7-Eleven stores selects products approved by the Food and Drug Administration (FDA) mark with barcodes. Selected products will be organized and promoted via public relations media in 5-1OO 7-Eleven stores depending on customer group suitability criteria. This measure doubles to initiate sales and provide methods to track products sales. Upon satisfying Company criteria, the sales will be expanded to various 7-Eleven branches at the provincial, regional, and nationwide levels in chronological order. In addition, Lotus's, a company in the CP ALL group, joins in supporting community products and SMEs from 2OO communities across the country. By being a distribution channel for community enterprise products local products Through Lotus's branch stores and platform channels as well. Target Group : Community enterprises, SMEs Impact : Supported local product over 26227 SKUs distributed to 1229 7-Eleven stores and Lotus's distribution centers 2300 branches Local Product purchase value 18830 million Baht

Food Utilization

International quality standards and food safety certification

CPRAM establishes guidelines for selecting raw materials according to international standards including BRC standards, HACCP standards, and GMP standards, etc., in addition to strictly controlling production and development of systems in accordance with relevant laws. The guidelines ensure that consumers receive quality, safe and reliable products.

Examples of food quality and safety standard certified products

Animal welfare standards certification

CP ALL collaborates with Charoen Pokphand Foods Public Company Limited, the Company's main raw materials supplier, in operating under policies and management guidelines compliant with animal welfare management standards. This approach enables the delivery of quality and food safety qualified raw materials which have been audited by Business Benchmark on Farm Animal Welfare (BBFAW) and Marine Stewardship Council (MSC), etc. that have been certified to meet quality and food safety standards from leading international institutions and organizations.

Examples of animal welfare standards certified products

Animal Welfare Project

Makro, as a leader in Thailand's wholesale business, is committed to supporting cage-free egg farmers in an approach to emphasize responsible food production according to animal welfare policy. In promoting this trend which consumers globally adhere to, the Company collaborates with supplier King Fresh Farm, the first Thai SMEs to produces organic chicken eggs certified to Europe and America, including EU, NOP & USDA (USA), in planning and production of organic free-range chicken eggs under the brand “Aro Gold”. In operating closely with egg farmers, suppliers and relevant agencies, the Company provides farmer training, jointly develop cage-free chicken egg production processes, and campaigns to education customers and the public in quality product alternatives which promote animal welfare. Work closely with egg farmers business partners and related agencies Provide training to farmers and jointly develop the production process for cage-free chicken eggs. along with campaigns to educate customers and the public. This approach enables Thai people to consume chicken eggs from happy hens free from antibiotics, hormone boosters and growth accelerating substances. The safe and high nutritional value eggs are a product of hens which naturally consume a variety of foods.

In addition, Makro also cooperates with major chicken egg producer, CPF, which is a producers and distributor of chicken eggs at Makro, to increase cage-free egg production every year. The increased production will enable eggs from happy hens to be sold to consumers and businesses at a more affordable price.

Products and nutritional value

The Company establishes standard criteria for developing products under Company control (Private Brand) in the food and beverage segment to promote consumer health and product nutritional value, readiness to support projects throughout the raising, production, transportation, and distribution processes. The support extends to sales and services in 7-Eleven stores and Makro and Lotus's distribution centers.

Traceability Project

Makro, as a leader in the wholesale business and fresh food ingredients sourcing, focuses on conducting business with emphasis on selecting high quality, safe and traceable ingredients from farms to the consumers. Makro also cooperates with the Department of Livestock Development in pork meat safety inspections at every branch, including the Makro Srinakarin branch, to receive the OK livestock symbol certifying freshness, cleanliness, and safety for consumers. The certified products must satisfy 4 criteria: product origination from standardized farms, processing through legal slaughterhouses, clean sales locations, and traceability.

Makro also emphasizes monitoring meat safety at branches through 7 critical control measures, including:

Meat products must originate from Department of Livestock Development standard certified farms
Production sites must receive satisfactory food hygiene assessments from the Ministry of Public Health
Products must receive satisfactory microbiological and chemical safety inspections through ISO17O25 certified laboratories equipped with thorough DNA level inspection to ensure no contamination
Makro i-Trace, a source traceability system, must be utilized
International standard cleanliness throughout product storage and transportation processes must be maintained
Participation in the Department of Livestock Development e-Privilege Permit system to increase efficiency meat transportation control processes prior to sales in Makro branches
OK Livestock mark availability at every Makro branch, which signifies good hygiene control standards and meat products safety standards complaint with the Department of Livestock Development

Example for Certification or Accreditaiton

Aquaculture Products (BAP Certificate)

Dairy Products (GAP Certificate)

Coffee (GAP Certificate)

Palm Oil (RSPO Certificate)

Related policies and Guideline

Sustainable Sourcing Policy (CP ALL)	Download
Sustainable Sourcing Policy (CPRAM)	Download