Charoen Pokphand Foods (CP Foods), a global agroindustrial and food conglomerate, aims to achieve net-zero emissions by 2050. To realize this ambitious goal, CP Foods needed a robust system to track, manage, and report its environmental impact across its extensive operations. This lesson explores how CP Foods leveraged SAP Sustainability solutions to gain strategic insights, ensure compliance, and enhance traceability throughout its value chain.
CP Foods, operating in 17 countries and exporting to 50, recognized the importance of sustainability in its mission to provide high-quality, safe, and environmentally friendly food products. The company committed to reducing its environmental footprint, specifically targeting a 42% reduction in scope 1 and 2 emissions and a 30.3% reduction in scope 3 emissions by 2030.
To achieve these goals, CP Foods embarked on a digital transformation, implementing SAP Sustainability Control Tower, SAP Sustainability Footprint Management, and SAP S/4HANA Cloud Private Edition, including the EHS (Environment, Health, and Safety) environment management solution.
SAP Sustainability Control Tower automates data collection, turning a previously manual process into a centralized, ERP-centric system. This provides an accurate and auditable record of scope 1, 2, and 3 emissions, enabling CP Foods to generate ESG reports and meet regulatory requirements like the EU's Carbon Border Adjustment Mechanism (CBAM).
SAP Sustainability Footprint Management calculates corporate-level carbon emissions across all scopes, including forest, land, and agriculture (FLAG) and non-FLAG emissions, in compliance with Science Based Targets initiative (SBTi) standards. This allows CP Foods to identify emission hotspots and make informed decisions to reduce its carbon impact.
SAP S/4HANA Cloud for EHS environment management enhances operational compliance by providing a centralized system for assessing, monitoring, analyzing, and optimizing air, water, and waste processes.
By integrating these SAP solutions, CP Foods can replace inefficient systems with renewable energy sources, reduce GHG emissions, water usage, and industrial waste. The company plans to further leverage SAP Green Ledger for product-level carbon footprint calculations and material traceability.
Summary
- CP Foods uses SAP Sustainability solutions to track and manage emissions data, aiming for net-zero emissions by 2050.
- SAP Sustainability Control Tower automates data collection and provides an auditable record of emissions for ESG reporting and regulatory compliance.
- SAP Sustainability Footprint Management calculates corporate-level carbon emissions, enabling CP Foods to identify reduction opportunities.
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