Sustainability Management

In 2014, the roles and responsibilities of the Sustainable Development Committee were adjusted by having the Corporate Governance Committee incorporated, the committee’s name has now been changed to Corporate Governance and Sustainable Development Committee (“CG-SD Committee”), of which committee members are composed of CPN’s executive committee and high-ranking officers from all business units along the value chain. The committee devises and reviews policies, strategies, work plans, and regulations, while following up results of work on sustainable development, which involves creating a good balance between business operations, environment care, and quality of life in communities and society. The mission needs participation from staff, business partners, and all stakeholders.

CPN’s sustainability report is in accordance to Global Reporting Initiative’s G4 guideline, which is a part of the company’s annual report

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Topic 2015 Performance Outcomes 2016 Plans
SD MISSION 1 and 2:
Developing potential entrepreneur (Mission 1) Strengthening tenant’s competitive advantage (Mission 2)
Tenant Engagement
  • Implemented strategic tenant engagement plan by adjusting the KPI to be more challenging. The outcome was higher than last year but not yet to the target level.
  • Implemented marketing plan to promote sales strategically with main tenants, resulting in sales increase of 14-35% during the campaign.
  • Adjusted KPIs by clearly separating tenants and customers.
  • Drew up a tenant development program, focusing on providing knowledge and comprehensive support to accentuate tenant growth.
  • Embedded information received from participation of tenants through various channels in operational risk management process.
  • Implement the tenant development program.
  • Implement the strategic tenant engagement plan to achieve a more challenging KPI.
Creating a place of inspiration
Customer Engagement
  • Implemented customer engagement strategy plans with KPI achieving the target for three consecutive years.
  • Implemented plan to increase communication channels to correspond with current consumers’ needs in fulfilling their lifestyles by launching via online media on Facebook page “CPN Life” that showcases story of interest in society covering modern lifestyles in aspects of shopping, foods and entertainment venues, etc.
  • Integrate the digital strategy into the communication marketing plan and increase the efficiency of feedback to the commentator.
  • Adjust the customer satisfaction index to be more challenging.
  • Implemented the two shopping centers’ enhancement plans and added a family entertainment complex, water park and common recreation area in designated shopping centers according to plans.
  • Implemented the innovation strategy plan for it to directly correspond to customers’ needs, starting with the pilot project of making the stores “Food Destination” and create a new “co-working space” according to plans.
  • Increased communication channels and services for foreigners in alignment with store target groups.
  • Implement plans for asset enhancement projects in pipeline.
  • Expand the innovation plan to better correspond to customers’ lifestyles.
  • Increase the effectiveness of operational risk evaluation to include more than 85% of the shopping centers under management.
Delivering exceptional products and services while providing safety and convenience
  • Applied for certification of ISO 9001 in accordance with plans. In 2015, three projects were submitted – CentralFestival Chiangmai, CentralFestival Hatyai and CentralPlaza Ubonratchathani.
  • Applied Asset Management System to enhance efficiency at pilot projects. • Embedded all information received from tenant and customer participation in the operational risk management process.
  • Evaluated all seven CPN’s multi-purpose convention centers according to the Thailand Venue Standard (conference) and received the Thailand MICE Venue Standard accolade.
  • Apply for ISO 9001 for two more projects and prepare for certification at four more projects in 2017.
  • Systematically expand Asset Management to increase value and efficiency to include more than 50% of all branches.
  • Apply for ISO 20121 certification in one project and expand to include 100%
SD MISSION 5 and 6:
Offering career advancement and opportunities (Mission 5) Engaging employees and enhancing wellbeing (Mission 6)
Employee Engagement
  • Implemented the plan to build employee engagement using the KPI for employee engagement by seeking to attain the target level for three consecutive years with a 3% increase from the year before.*
  • Executed 106 subplans according to the plan to forge engagement by the People Team and EOS Change Agent in each unit with monitoring and close follow-up at each level by the People Development Committee of each branch, working units, group and corporate levels.
  • Implemented the plan to successfully retain personnel and reduce the percentage of KPI regrettable loss as planned.
  • Increase the efficiency of the online application system and channels for recruitment on a par with the lifestyles of the new generation.
  • Increase the efficiency of the career development plans and growth within and across business in parallel with developing personnel through coaching by superiors or by colleagues.
  • Implement the plan to work efficiently together under the same organizational culture.
SD MISSION 7 and 8:
Co-creating social and community values (Mission 7) Managing societal and environmental impacts efficiently and effectively (Mission 8)
Community Empowerment
  • Donations through various foundations such as Tiang Chirathivat Foundation, the Environmental Foundation, Pathumwananurak Foundation to support on building Pathumwananurak Park for Pathumwan District etc., with total amount of 69 MB.
  • Supported with personnel and budget in developing shared values in the communities with total budget of 2 MB.
  • Adjusted and clarified the framework for allowing the use of venues for organizing events to promote community’s good values, tradition and culture.
  • Adjust plans for the Growing Thai Wisdom Project to be more effective
  • Execute plans to support vocational development for communities and activities for provincial tourism promotion.
Energy and Utility Management
  • Energy consumption reduced by 1.7% from last year (only in controllable areas, excluding the CentralPlaza Pinklao project that was partly closed for renovation) or total reduction of energy of 5.3% from the base year (2012) as planned.
  • Use of recycled water reduced by 5% because the water quality did not meet the standard and therefore CPN could not recycle water as targetted.
  • Applied for ISO 50001 certification for CentralPlaza Lardprao and CentralPlaza Rama 2
  • Set a target to reduce energy consumption by 3% (only in controllable areas) and maintain the long-term target of 5% reduction in all energy consumption by 2017 (2012-2017 period)
  • Set an 8% target for use of recycled water (only in eight projects already installed) by 2017.
  • Expand cooperation in efficient energy management to business partners.
  • Study novel efficiency measurement of energy consumption.
Reduction of GHG emission
  • Applied for carbon footprint certification in accordance with the evaluation of the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO) for CentralPlaza Lardprao, CentralPlazaRama 3 and CentralPlaza Salaya.
  • Organized internal meetings that offset carbon emissions from travel, food consumption, conference waste, and electricity used in order to become carbon-neutral to forge awareness of the policy concerning GHG management.
  • Considered applying alternative energy such as solar power in appropriate projects
  • Duplicate procedure for certification of organization’s carbon footprint to other branches, to cover 25% of all branches opened.
  • Implement alternative energy development plan in a given project.
Garbage, Waste, and Ecological management
  • Prepared to apply for ISO 14001 certification of five projects. One project has already been submitted for certification – CentralPlaza Chiangrai, up to now 15 submitted projects in total.
  • Submit the application for ISO 14001 certification for four other projects and prepare for three others that require certification.
  • Implement a plan that identifies issues concerning ecological management and biological diversity in the construction process.
Encouraging responsible supply chain
Supply chain management
  • Improved the bidding process to ensure fairness to contractors and prevent advantage/disadvantage in the process of price negotiations. CPN is indicating a clear intent of anti-corruption, and clearly specifying channels for whistleblowing directly to the highest level of senior executives at the level of Senior Executive Vice Presidents, Executive Vice Presidents, and Senior Vice President (Business Development and Construction Management unit) in the invitation to bid letter and inside the bidding room.
  • Increased efficiency for expenditure management through e-bidding. In 2015, there was an increase of 70% of online bidding projects.
  • Prepare to announce the Supplier’s Code of Conduct
  • Develop risk assessment of business partners with justice and more clearly determine ESG or sustainable risk in the supply chain.
Acting on good governance and transparency
Corporate Governance