Sustainability Performance

CPN implements sustainable development concept with the intention to “Creating shared value for stakeholders and society as a whole”. To serve each stakeholder, CPN defined 10 SD missions, with strategic plans, goals, operational plans, and responsible units that present the work progress. CPN also assigns CPN executives as SD Champions who promote, support, and drive missions toward goals. Performance must be reported quarterly to the CG-SD Committee, with the sustainability framework as below:

Stakeholder Sustainability Framework SD Mission and Performance
Tenants Co-creating opportunities and success with tenants
  1. Developing potential entrepreneurs
  2. Strengthening tenant’s competitive advantages
2016 Performance Outcomes
SD MISSION 1: Developing Potential Entrepreneurs
SD MISSION 2: Strengthening Tenant’s Competitive Advantages
Topic 2016 Performance Outcomes 2017 Plans
Building business opportunities
  • Implemented strategic new customer plans, with success exceeding the target.
  • Allow new entrepreneurs who have no store in any CPN shopping mall to join the CPN Leading Entrepreneur Advanced Development Project, representing more than 40% of all participants.
Relationship management
  • Implemented SD Missions 1 and 2, whereby tenant satisfaction served as the organizational indicator. A survey revealed that the tenant satisfaction increased from the previous year but did not reach the target.
  • Implemented strategic sales promotion plans by conducting 152 activities under the program “Exclusive Campaign ONLY@CPN,” which resulted in 20-35% increase in tenant’s sales during the event.
  • Completed tenant potential development plans under the CPN Leading Entrepreneur Advanced Development project, which will be ready to be implemented by Q1 of 2017.
  • Set a target of tenant satisfaction index at the same as 2016's, as in par with leading companies.
  • Implement strategic rental optimization plans and increase plans for promoting and forging tenant relations.
  • Implement strategic sales promotion plans to gain recognition of at least 10% of all marketing campaign activities.
  • Encourage tenants to open new markets and improve the variety of stores within shopping malls.
Customers Adhering to the customer-centric approach
  1. Creating a place of inspiration
  2. Delivering exceptional products and services while providing safety and convenience
2016 Performance Outcomes
SD MISSION 3: Creating a Preferred Mall of Choice and a Place of Inspiration
SD MISSION 4: Delivering Exceptional Products and Services While Providing Safety and Convenience
Topic 2016 Performance Outcomes 2017 Plans
Customer engagement
  • Implemented SD Missions 3 and 4 by which the index of customers’ satisfaction was slightly lower than the target.
  • Underwent major renovation of two shopping centers i.e. CentralPlaza Pinklao and Central Marina as planned.
  • Increased communication channels according to the work plan to meet customers’ demands in the modern age via social online with over 2.2 million followers of the webpage and over 300,000 followers of the website.
  • Set target for customers’ satisfactory score at the same as 2016's, as in par with leading companies.
  • Implement the work plan to construct three new shopping centers and renovate five shopping centers.
  • Extend online marketing communication channels by adding the “CPN Life” channel via Mobile Application and Interactive Kiosk to increase communication potential and offers that meet better customers’ requirements.
  • Modify marketing channel strategy by increasing online communication by 40% and other channels of marketing communication by 60%.
Management
  • Invested in new services to meet customers’ needs in the amount of Baht 29.2 million.
  • Announced the use of Standard Mall Handbook and in a trial process in all shopping centers.
  • Operated and completed the Outsource Development Program covering 100% of all suppliers (individual counting).
  • Applied for ISO 9001 certification according to the work plan. In 2016, applied for two additional projects, namely CentralFestival Samui and CentralPlaza Salaya.
  • Applied for ISO 20121 certification according to the work plan for one project
  • Assessed operation risk factors on operation covering 100%of all operating shopping centers.
  • Improve CPN’s Standard Mall Handbook and the development process of business partners’ staff for significant effectiveness.
  • Improve CPN’s Standard Mall in the area of services specifically to tenants and customers in accordance with ISO 9001 certification.
  • Apply for ISO 20121 certification for two additional shopping centers and extend this to all shopping centers.
Employees Working professionally and creating pride as part of the organization
  1. Offering career advancement and opportunities
  2. Engaging employees and enhancing wellbeing
2016 Performance Outcomes
SD MISSION 5: Offering Career Advancement and Opportunities
SD MISSION 6: Engaging Employees and Enhancing Wellbeing
Topic 2016 Performance Outcomes 2017 Plans
Employee engagement
  • Implemented the work plan for increasing employee engagement, with Employee Engagement Index meeting the set target for four consecutive years and a rising score of 28% from the previous year.*
  • Implemented all engagement plans, driven by the People Team and POV Change Agent in each unit. Closely monitored the performance by People Development Committee at branch, office, business group, and corporate levels.
  • Implemented the employee retention plan to reduce the rate of regrettable losses, with reducing the %regrettable loss indicator to meet the set target.
  • CPN did not set up a labor union within the organization and no employee of CPN belonged to any other labor union.
  • Improve recruitment efficiency via the online channel and recruitment channels to be more in line with the lifestyle of the new generation.
  • Improve efficiency of individual career development plan and career path in or across lines of work, in parallel with employee development by supervisors’ or colleagues’ direct coaching.
  • Implement cooperation plans for efficient work as part of the corporate’s culture.
Society, community, and environment Developing into center for communities Managing the climate change and environmental impacts
  1. Co-creating social and community values
  2. Managing societal and environmental impacts efficiently and effectively
2016 Performance Outcomes
SD MISSION 7: Co-Creating Social and Community Values
SD MISSION8: Managing Societal and Environmental Impacts Efficiently and Effectively
Topic 2016 Performance Outcomes 2017 Plans
Investment and community development
  • Held 42 marketing activities, under the budget of 45 million baht, to develop shared value with the communities and society.
  • Joined Public-Private Collaboration project, with special budget of 14.2 million baht for new projects.
  • Offering space for free of charge, equivalent to the budget of Baht 240 million, to support community activities.
  • Provided the taskforce and budget for CPN Volunteer project and other projects that co-create value with communities, totaling Baht 1.4 million (excluding Long-distant Learning-via-satellite project, which is under submission).
  • Generated 14-million-baht income (based on the data collected) for community entrepreneurs, farmers, and community enterprises and more than 40-million-baht income for SMEs.
  • Adjust the pattern of Public-Private Collaboration project to enhance efficiency.
  • Host marketing activities to co-create value with communities and society, representing 10% of total marketing activities throughout the year.
  • Develop and improve CPN Volunteer project so that the employees can propose and participate in activities. The Project targets more precisely.
Donation
  • Made a donation, with the total budget of Baht 10.5 million, to various foundations, such as Tiang Chirathivat Foundation and the Environmental Foundation.
  • Together with Central Group, combine the Growing Thai Wisdom project with CONNEXT ED (Leadership Program for Sustainable Education), targeting to develop 3 schools in the Project.
Efficient GHG management and natural resources usage
  • Estimated CPN’s GHG emissions. Eight branches were certified by external agencies, representing 25% of the total shopping centers operated in 2016.
  • Reduced energy consumption by 4% from last year, or 8.6% against the base year 2012.
  • Installed energy-saving techniques worth 182 million baht, which could lower energy consumption by about 12,804 megawatt/year.
  • Completed to install renewable energy system (solar-cell) in CentralPlaza Ubonratchathani as planned.1)
  • Won four Thailand Energy Awards 2016 in CentralPlaza Grand Rama 9, CentralPlaza Udonthani, Central Rattanthibet, and CentralPlaza Chiangrai.
  • Water consumption (controllable area) was up 3.9% against previous year due to a change of chiller at CentralMarina and an increase in using recycled-water not less than 2% of water usage volume.
  • Invested in the installation of waste water treatment systems for reusing, worth Baht 4.6 million, at CentralPlaza WestGate, CentralPlaza Rama 3 and CentralFestival Hatyai. Water consumption volume was estimated down by 200,600 cubic metres per year.
  • Formulated efficient plans of waste and garbage management, set goals to reduce garbage in landfills, and increased the volumes of recycled waste in pilot shopping centers.
  • Educated related parties and improve the method for correctly filling, storing, and reporting the performance of resource management in every shopping center. CPN is now assessing the outcomes to verify the data.
  • Studied and applied design and construction standards based on international standards.
  • Expand the scope of GHG emissions assessment to more than 75% of all shopping centers to be operated in 2017.
  • Set target to reduce energy consumption by 3% from 2016 and set a long-term goal to lower Specific Energy Consumption by 20% by 2025, compared to data in 2015 as base year (2015 -2025).
  • Conduct a feasibility study to install renewable energy system (solar-cell) in three projects.
  • Set target to reuse the water at least 2% of total consumption and at least 5% by 2025.
  • Study the volumes of waste and make a list of waste by category, with CentralPlaza WestGate as the pilot project.
  • Improve the integrated system to store and report the data of resource management. Find the international standards for benchmarking.
  • Raise the standard of building design and construction to be on a par with international ones, such as LEED (Leadership in Energy and Environmental Design).
Environment Management System (EMS)
  • Maintained and controlled the ISO 14001 standard to manage the environment in 19 certified shopping centers in every region. CPN requested the certification of four more projects, namely CentralPlaza Suratthani, CentralPlaza Phitsanulok, CentralPlaza Rama 9, and CentralPlaza Lampang 2).
  • Reviewed environment management system by internal and external quality management agencies and found neither operation violating best practice nor significant leakage.
  • Request ISO 14001 certification of four more projects.
Supply-chain management
  • 224 business partners and contractors passed qualification assessments in terms of economic, social, and environmental sustainability.
  • Preliminarily evaluate key business partners’ and contractors’ qualifications related to the environment and society. They are also required to strictly comply with local and national environmental laws and regulations.
Stakeholders’ Engagement
  • Promoted optimal resource usage, such as water and electricity efficiency and 4Rs measures, via internal communication channels, covering stakeholders visiting CPN’s shopping centers nationwide.
  • Joined the “60+ Earth Hour 2016” campaign, jointly hosted by Bangkok Metropolitan Administration, Foundation for Environmental Education for Sustainable Development (Thailand), World Wildlife Fund for Nature (Thailand), and public and private agencies, and CPN turned off the lights for one hour to alleviate global warming for eight consecutive years.
  • Expand the scope of work by tangibly increasing stakeholders’ engagement, especially tenant shops and customers, in SD mission 8.
Suppliers Expanding business with suppliers and being socially responsible
  1. Encouraging responsible supply chain
2016 Performance Outcomes
SD MISSION 9: Encouraging Responsible Supply Chain
Topic 2016 Performance Outcomes 2017 Plans
Supplier management
  • 224 suppliers and contractors passed pre-qualification assessment in economic, social, and environmental aspects.
  • Prepared and announced the Supplier’s Code of Conduct manual to 300 suppliers for their acknowledgment and compliance in line with CPN’s practices
  • There was one critical accident with a contractor during project construction and renovation in 2016.
  • No complaint of human rights violation, illegal workers, or actions that impacted communities and environment was found in CPN’s construction or renovation projects in 2016.
  • In 2016, the number of projects using the e-procurement process decreased 5% from the previous year partly due to the decrease in the number of projects. The cost management efficiency improved 10% compared to previous year.
  • Follow up the efficiency and effectiveness of risk management measures and review the method of supplier risk assessment.
  • Expand the scope of implementation by educating more than 50% of major suppliers on the Supplier’s Code of Conduct.
  • Applying the screening framework for new suppliers to annual assessment of current suppliers
Supplier development
  • Held an Annual Supplier Information Meeting 2016, with attendance of 207 suppliers. Their satisfaction score more than 90% of the suppliers recognized the importance of safety and loss prevention, transparency, and good governance. These key factors are advised to consider for mutual business conduct.
  • Leverage on the Annual Supplier Information Meeting by increasing suppliers’ participation, including formulation of a concrete supplier development plan.
Stakeholders Being a credible and trustworthy organization
  1. Acting on good governance and transparency