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PLANET PRESERVATION

Planet Preservation

We commit to the efficient use, reuse, and restoring of agriculture and fisheries resources, as well as better management of our environmental impacts by decreasing our water and energy consumption, lessening our greenhouse gas emissions, and actively monitoring our waste generation as we continue to grow our business and serve Filipinos.

Tuna Sustainability

Leading the advocacy for more sustainable fishing practices and responsible sourcing as well as improving how we manage our impacts as part of the solution

Using Skipjack Tuna
Stocks of skipjack are deemed to be at healthy levels by the International Seafood Sustainability Foundation (ISSF) in 2023.

Traceability
All tuna raw materials are traceable at the source – vessels are registered at the Proactive Vessel Register and audited by a third-party assurance group, MRAG Americas. This ensures that we only source from suppliers who comply with industry best-practices and conservation measures.

International Seafood Sustainability Foundation (ISSF)
CNPF is a member of the International Seafood Sustainability Foundation (ISSF). CNPF also sits on the Board of the ISSF to help shape sustainable tuna fishing practices globally.

Aligning with Other Global Standards and Industry Associations
We are also a member of the Global Tuna Alliance—a market-led initiative that issued the Tuna Traceability Declaration in 2020 in support of the U.N. Sustainable Development Goal 14: Life Below Water.

In 2021, General Tuna adopted the GDST Standards and Guidelines for Interoperable Seafood Traceability Systems, Version 1.0 as part of the global initiative to make global seafood traceability more reliable and more affordable by allowing for interoperability across seafood traceability platforms. This is an important development for the industry to combat illegal fishing and unethical labor practices.

42% of our fisheries are certified by Marine Stewardship Council (MSC). To further our MSC Certification, we are working with the Bureau of Fisheries and Aquatic Resources (BFAR) to manage a Fishery in Progress (FIP) in the Western Central Pacific Ocean High Seas Pocket 1 for 36 Philippines-registered vessels. This FIP addresses a common set of harvest rules and enforcement tools and capabilities to ensure sustainable stocks of Yellowfin and Skipjack tuna. Importantly, the FIP contributes to nation-building as it encompasses all Philippines-registered vessels, thereby helping to make our local fishing industry more competitive on international markets.

To read more about Tuna Conservation, visit the Purchases Assessment page on our website.

Natural Resource Efficiency

Water Consumption Reduction
Continuously improving by invest in technology and deepening our understanding of our water-related impacts on the local communities where we source our water

In 2023, total water withdrawal increased by 2%, resulting in a 51bps increase in water intensity as production volumes softened. Nonetheless, we continued to pursue various initiatives to reduce our water demand, utilize alternative water sources, and recycle water as much as practicable.

Water intensity is calculated as total water withdrawal divided by total product volume produced in mt. This metric means that for every mt of product manufactured in 2023, CNPF withdrew 9.77 cubic meters of water.

Energy Consumption Reduction
Implementing energy conservation across all plants resulting in an improvement in our energy intensity of 3% versus the year before.

Our Tuna plant has 100% energy-efficient LED lighting, and we have additionally replaced other systems, equipment, and machinery with more energy-efficient technology. Our Sardines plant has upgraded their motors to high-efficiency models that support both their cannery and fishmeal operations. We are also diversifying our energy mix to increase the share of renewable energy such as solar power.

*In 2023, total energy consumption decreased by 6%, resulting in a 12bps reduction in energy intensity. Non-renewable energy consumption decreased by 7%, coupled with an 18% increase in renewable energy, in line with our endeavor to shift our energy mix towards cleaner sources such as solar power.

**Energy intensity is calculated as total energy consumption divided by total product volume produced in mt. This metric means that for every mt of CNPF product manufactured in 2023, CNPF consumed 5.30 gigajoules of energy.

Environmental Impact Management

Greenhouse Gas Emission Reduction
Increasing the share of renewable energy in our energy mix and implementing new waste-to-energy initiatives.

We commissioned a 5.2-MW Solar Photovoltaic (PV) Plant on the site of our Tuna and Coconut manufacturing operations in General Santos City with capacity to generate 7.4 million kWh per year—powering approximately 15% of the plant’s energy requirements and avoiding the equivalent of nearly 6,000 metric tons of carbon dioxide. The electricity we purchase for this location also sources a proportion of energy from hydroelectric turbines. As a result, more than 60% of the energy we consume at our General Santos plant now comes from renewable sources.

*In 2023, Scope 1 emissions decreased by 8%, driven by a reduction in coal usage.

**Emission intensity is calculated as total GHG emissions divided by total product volume produced in mt. This metric means that for every mt manufactured in 2023, CNPF emits 0.51 tonnes CO2eq of greenhouse gasses.

Spotlight Story

Harnessing Renewable Energy at CNPF

To reduce our carbon footprint, we are committed to continuously increasing the share of renewable energy in our energy mix by harnessing the power of technology and innovative solutions.

CNPF expanded its renewable energy (RE) portfolio in 2023, marking significant advancements in solar power and biomass technology. During the year, we added additional solar panels at our General Santos City plant, where we manufacture tuna and coconut products. As of 2024, we will have the capability of producing 8.8MW of solar energy, representing an estimated 60% increase from the previous year. We anticipate that approximately 20% of our facilities’ energy requirements will be provided by RE, including solar and hydroelectric power, by 2024.

In the quest to increase the use of RE in our operations, CNPF also embraces innovative technologies that leverage the by-products of our coconut processing activities. In 2023, we began to commission a new biomass boiler that uses coconut shells as a renewable fuel source, transforming waste into energy and reducing our environmental footprint. This switch is expected to reduce our coal consumption by at least 36% by 2024. With the successful implementation of our first biomass boiler, CNPF is poised to further bolster its sustainable energy portfolio by commissioning an additional mixed biomass boiler in the upcoming second quarter of 2024. These steps reflect a steadfast dedication to environmental stewardship and CNPF’s strategic approach to shape a more sustainable industry.

biomass-img

Landfill Waste Reduction

In our Coconut business, we strive to incorporate as much of the fruit as possible in a wide range of products such as Coco Mama (cream and meat) and OEM products like coconut water, coconut oil, desiccated coconut, and coconut flour, among others. To minimize waste, we are exploring sustainable uses for coconut shells and husks, for example as a biofuel. In our Tuna business, excess fish parts are turned into byproducts such as fish meal, fish oil, and fish soluble.

In compliance with the Ecological Solid Waste Management Act, all business units conduct onsite segregation of their operational waste as part of daily operations. We sell recyclables from our operations such as scrap metals, plastics, paper, and cardboard to scrap recyclers, while accredited haulers collect our general rubbish for disposal at landfill. All our business units have systems in place to monitor and measure the amount and type of waste from their operations and report quarterly to our Sustainability Steering Planet Subcommittee.

We prioritize materials that are recyclable, renewable, or biodegradable. Our current packaging range—from tin cans and metal lids to glass bottles, plastic containers, paper labels, and cardboard cartons—is designed to support recyclability. Additionally, we actively collaborate with partners to maximize the recycling and co-processing of plastic packaging, in an effort to reduce our environmental footprint. For further information see this report’s section on Net Zero Plastic Waste.

We are committed to managing the waste we generate, to recover and process these into resources that can be reused whether for our operations or for external processes.

*CNPF improved waste data collection, increasing the scope of business units and waste types tracked, resulting in an increase in the total waste generated reported for the year. The was primarily driven by reporting more general landfilled waste, packaging waste, and food waste from our operations that are processed into fishmeal and other by-products.

Net Zero Plastic Waste

We continuously seek out viable eco-friendly substitutes to single-use plastics and explore ways to diminish our plastic dependency. Our Tuna business has replaced plastic stretch films with reusable wraps for palletized empty cans and finished goods in logistics and transport, reducing plastic waste by over 56% since implementation of these initiatives in 2022.

70-80%

of our brands use paper and tin packaging which are more easily recycled

In 2023, CNPF marked its fourth year of commitment to achieving Net Zero Plastic Waste. We’ve advanced our initiatives by adding our pet food brand, Goodest, to the PCX program, bringing the total number of engaged brands to 12. The program now encompasses all CNPF brands using post-consumer flexible plastic packaging. We’ve maintained our plastic credits purchase to ~3,000 mt comparable to 2022 levels. Moving forward, we are committed to incorporating all new CNPF brands that use flexible packaging into our plastic waste offsetting program.

Net Zero Plastic Waste Brand Certifications

We are pleased to share that all our brands that make use of flexible plastic packaging have been certified as Net Zero Plastic Waste Brands by Isla Lipana & Co. (PriceWaterhouseCoopers).

The certified brands were the only CNPF brands that use post-consumer flexible plastic packaging during the audited period, making up 20-30% of our branded business.

See certifications here – Net Zero Plastic Waste Certifications

Learn more about our plastic waste footprint reduction program here.

Spotlight Story

Saving Our Seas

CNPF reinforced its commitment to the environment this year with the expansion of its “Saving Our Seas” campaign, in partnership with the impact organization HOPE and through its Aling Tindera Waste-to-Cash program. While this is but a small step towards addressing the plastic waste problem in the Philippines, we are steadfast in our belief that promoting the circular economy and mobilizing communities are fundamental to make progress.

The campaign, launched in 2023 in conjunction with Earth Hour, kicked off with volunteer effort supported by 212 individuals who collected plastic waste in Mabini, Batangas, a hotspot for biodiversity. To ensure the sustainability of these efforts, CNPF has installed multiple plastic waste collection points along the coast. These serve not only as disposal sites but also as economic opportunities for the community. The sari-sari store owners, who are part of HOPE’s Aling Tindera Waste-to-Cash program, play a pivotal role in managing these points. They collect, accumulate, and ensure proper recycling or upcycling of the waste.

At the close of 2023, the Aling Tindera, in coordination with Saving Our Seas, had successfully collected over 9,000 kilograms of plastic waste in total.

The overarching aim of CNPF is to empower Filipino communities to fight against plastic pollution, emphasizing that the responsibility for preventing pollution begins at home, regardless of one’s proximity to the coastline.

Supply Chain Management

Supplier Credibility
Seeking business partners that meet our commercial standards, comply with relevant government regulations, and align with our social and environmental aspirations as a responsible member of the community.

Instituted the Supplier Code of Conduct and Ethics (SCOCE) that outlines the company’s stance with respect to responsible sourcing and supply chain sustainability

100% of current active suppliers signed and acknowledged the SCOCE as a requirement to work with CNPF

Local Sourcing

To support the local economy, we allocate over 50% of our total procurement budget on suppliers registered in the Philippines. In 2023, 100% of the raw materials for our Coconut business were sourced from local farms. Our Sardine business also works with local fisherfolk, sourcing most of its major raw materials requirements locally.