Charoen Pokphand Foods (CP Foods) is working with small- and medium-sized suppliers in its supply chain to facilitate low-carbon product delivery. With knowledge accrued from Thailand Greenhouse Gas Management Organization (TGO) experts, the company is pushing along in its endeavour to achieve its net-zero goals.

Climate change and global warming are issues with immediate implications; therefore, practices with a low or no carbon footprint are crucial in today’s businesses. This applies to all industries, ranging from agriculture to food and beverage supply chains.

Thai consumers are growing increasingly aware of the environmental impact of their product choices. This is corroborated by GlobalData’s survey held in the first quarter of this year, wherein 57% of surveyed consumers in Thailand responded that environmentally friendly and sustainable features always or often influence their food and drink consumption habits. This data incentivises consumer packaged goods manufacturers to adopt sustainability initiatives.

TGO personnel advised CP Foods’ suppliers on how to reduce greenhouse gas emissions by producing low-carbon products. Through this, CP Foods aims to enable Thai entrepreneurs to expand and compete in the global market that has several environmentally-conscious stakeholders.

CP Foods aims to engage more with its supply chain stakeholders, to help them develop effective production methods at all stages and ultimately develop low-carbon food products in response to global demand.

The company is doing this through various phased programmes such as its ‘Partner to Grow’ initiative, which helps suppliers of varying sizes and statures to scale efficiently and achieve growth while reducing production costs, as well as its ‘SMEx, Lower Costs, and Eco-friendly’ programme, which aims to assist ten small or medium-sized suppliers reduce production costs with the Lean Six Sigma methodology.

Its ‘Partnership Enhancement Program’ aims to improve the sustainability of companies in four areas – cost control, process innovation, governance, and responsible practices.

CP Foods is committed to cultivating business partnerships that enhance environmentally and socially responsible food production by complying with related food standards, supplier guidance, and international sustainable sourcing policies.

Additionally, the company is partnering with Bangkok Bank to help its suppliers with financial resources at low interest rates, which is crucial for the consistent and continuous delivery of high-quality food products sourced from a sustainable supply chain.

Such efforts by Asia-Pacific-based food companies would go a long way in placing them on the global map, where environmental/social responsibility and accountability of supply chains now assume a much greater significance.