In an effort to dispel the negative image about its domination, agribusiness giant Charoen Pokphand (CP) Group yesterday unveiled plans for its first CP social impact fund.
The fund will serve as a driving force for positive changes in social development as well as sustainable business expansion, the company said.
Suphachai Chearavanont, who earlier this year was entrusted by his billionaire father Dhanin to lead the US$45-billion business, said the CP social impact fund will be set up next year with seed money worth 1-2 billion baht to invest in potential social enterprises. The ultimate goal is to reduce social disparity.
Beyond financial support, the group is also committed to providing knowledge, marketing, technology and distribution channels to the social enterprises.
"Investment will come in many ways, from a joint venture to a minor stakeholding," said the group chief executive. "We're hopeful that the social enterprises we invest in will also grow steadily and can raise funds on their own from other venture capital in the longer term.
"Our ultimate goal is to create a social impact that will narrow the economic and social gap. The stronger society is, the stronger the group's business will become."
The initiative is part of CP Group's 2020 Sustainability Goals to achieve 12 targets involving, among others, human rights, human resource and leadership development, and innovation creation.
The company aims to stay among the top 20-30 global companies focusing on sustainability. To do so, it will seek to raise four areas to international standards: safety management, environment and energy management, human rights management, and improving stakeholder engagement.
CP Group officially announced its 2020 Sustainability Goals last year so that its affiliates would take the same direction in their business strategy.
The company is determined to drive sustainable development in all communities where it operates. The scheme is in line with the UN's Sustainable Development Goals.
"We are confident that CP Group's sustainability efforts will be an important driving force for positive changes in our business operations in Thailand and around the world," Mr Supachai said.
CP's 13 business groups will operate under the sustainability strategy of "heart-health-home", striving to meet all the targets by 2020.
This year, three CP companies showed achievements in their focus on sustainability. CP All Plc and True Corporation Plc were selected for the first time to be members of the globally recognised Dow Jones Sustainability Indices (DJSI), while Charoen Pokphand Foods Plc (CPF) retained its membership for the third year running.
The World Business Council for Sustainable Development (WBCSD) also revealed that CP Group's sustainability report, launched this year, received a score of 72.2%, close to the top 10 companies' scores of 78-82%.
In addition, CPF and True were selected as members of the FTSE4GOOD Emerging Index by FTSE Russell. Both were also given full marks (five stars) and Makro four stars in the 2017 Corporate Governance Report published by the Thai Institute of Directors.
Sooksunt Jiumjaiswanglerg, CPF's chief executive, said the company has integrated sustainability into its business strategy and policy by investing hundreds of millions of baht in projects related to sustainability and corporate social responsibility (CSR).
It is now stepping up from only engaging in CSR activities to focus on sustainability and social responsibility.
CPF has been a member of the DJSI for three straight years, with its score rising every year -- from 65 in the first year to 75 in the second and 81 this year.
It has set a mission to become the sustainable kitchen of the world with three core strategies: balance of nature, self-sufficiency society and food security.
"We rank fifth in the global food industry," Mr Sooksunt said.
By 2020, the company hopes to achieve its six mission targets: upgrading the quality and safety of the food production process, supporting inclusive food access, developing supply chain growth, promoting local livelihood, mitigating environmental impact and protecting biodiversity.
Under these six targets, there are 11 objectives to be achieved by the year 2020. They include supporting 300,000 youths to gain access to knowledge of food production and nutritional consumption, sourcing supply of raw materials from responsible and traceable sources, reducing greenhouse gas emissions by 5%, and lowering water consumption per unit of production by 10%.
Mr Sooksunt said the company also employs sustainable strategies for its overseas operations, such as in Vietnam, where its CSR activities and sustainability projects are acknowledged by the Vietnamese government.