By THE NATION
Wuthichai Sithipreedanant, senior vice president for corporate social responsibility and sustainable development at CP Foods, said the company recently carried out a social and environmental-impact valuation of its contract farming scheme through “internationally recognised impact valuation protocols, which pinpoint the financial results of the scheme’s positive and negative impacts”.
According to the company, the social result showed farmers spent more time with their families – from 1.9 hours a day to 4.3 hours – resulting in fewer social problems related to drug use among youth. The study also showed the scheme reduced the ratio of farmers living under the poverty line, while 85 per cent of farmers have seen their children gain above-basic education.
Regarding the environmental aspect, the valuation shows that nearly all farms under the CP Foods scheme have adopted biogas techniques. Though swine farms’ electricity and fuel use emit greenhouse gases, biogas techniques at the end help the farms reduce greenhouse gases by 92,000 tonnes of CO2 equivalent per year, the company said. “Conclusively, the social and environmental impacts created positive impacts worth as high as Bt230.4 million per year,” it added.
The valuation was carried out under the natural capital protocol and social capital protocol of the World Business Council for Sustainable Development. It covered income-guaranteed swine breeders in the northern, northeastern, central, western, eastern and southern parts of Thailand. The valuation was conducted by students from four of the country’s universities – Chiang Mai University, Walailuck University, Rajamangala University of Technology Tawan-Ok Bangpra Campus, and the Panyapiwat Institute of Management.
CP Foods is also the first Thai company whose valuation is re-assessed by Lloyd's Register International (Thailand), a sustainability assessment agency, the company said.
The contract farming impact valuation will be a key element in nominating CP Foods for the Dow Jones Sustainability Indices (DJSI) next year, the firm added. CP Foods has been named a member of the DJSI for four consecutive years.