The year 2016 was a particularly significant year for the Thai people as we mourned the loss of the father of our nation, His Majesty King Bhumibol Adulyadej. His passing caused great pain for all of us but has also made us determined to create a lasting legacy for him by continuing our focus on the application of his 'Sufficiency Economy Philosophy', which encourages moderation and helps us focus on long-term benefits over short-term profitability. We believe that the best way to pay tribute to the late King is by enshrining his spirit and beliefs in the next generation of business leaders. Looking back on the long history of the C.P. Group, I am

proud to see how we have deeply integrated His Majesty's guidance into our strategy and how far we have come. C.P. Group has a global footprint but our home and heart is in Thailand. We started with humble beginnings, originating from a single seed trading store in 1921, and have since grown into 8 business lines in 20 countries across 6 continents. When my father started out, he quickly developed the 'Three-Benefit Principle', aiming to create prosperity for the country, local communities as well as the company and its people. Today, this principle continues to define who we are as a group and its focus on shared value means sustainability is very much a core part of our businesses.

We recognize that our world faces significant challenges, from climate change and food security to the disruptive impact of technological changes. These challenges impact our customers, our employees and society at large, and can only be tackled if we equip the next generation of leaders with the skills and values needed to do so. Through the C.P. Leadership Institute, we aim to do just this by training and developing 20,000 leaders and executives each year. These upcoming leaders will not only learn the theoretical basis of leadership but also embody the values of social responsibility.

C.P. Group also had an important update at the beginning of 2017 with a new leadership structure at our privately held holding company. I have assumed the role of Senior Chairman of C.P. Group. Mr. Soopakij Chearavanont is now Chairman, and Mr. Suphachai Chearavanont is CEO. I will continue to be closely involved in oversight of the Group's strategy and direction while Mr. Soopakij focuses on new projects and investments, and Mr. Suphachai will focus on the day-to-day running of the Group and the implementation of key strategic initiatives, including sustainability strategies.

This is the first time we have published a sustainability report for the entire group. We hope it serves as a useful tool to inform stakeholders of our work, enhance collaboration across our businesses and demonstrates our reach and commitment to address global sustainability issues.

have always believed in the power of business as a force for good, but we can only realize its potential with the support of a broad range of stakeholders. Collaborators and critics alike help us to stay focused on pushing towards a shared vision for the future and delivering real, lasting change. With that in mind, I would like to take this opportunity to thank all our stakeholders around the world including our employees, our customers, suppliers, shareholders, partners, government agencies, and civil society partners for their continued support.

Charoen Pokphand Group has sustainably developed for nearly a century by adhering to the 'Three-Benefit Principle' in its business operations. This principle, which grew out of a simple drive to put the interests of others first, means we are dedicated to providing benefit for all countries in which we invest, followed by the people and communities where we operate, and finally, the business itself, its employees and shareholders.

For businesses to be sustainable, they need to be mindful of the ever-changing world. The global economy is constantly developing, having moved from traditional industry to the innovation-driven economy of today. Over the years, Charoen Pokphand Group has evolved in order to meet such global economic changes.

Our strategy currently focuses on 4 areas:
1. Digitization of our organization including data analytics, covering production processes, management, marketing and customer services;

2. Research and development for innovation through our own investment or in partnership with venture capital;

3. Human resource development to create a new generation of leaders while fostering an open culture in which talent can thrive;

4. Implementation of organizational values that emphasizes sustainable business growth.

To help us execute these 4 strategies, in 2016 we announced our 2020 Sustainability Goals. These goals are based on 12 issues that are of vital importance to the sustainability of the Group and its stakeholders. Goals, key performance indicators, frameworks and short, medium and long term plans were set under these 12 issues, which are in line with the United Nations' Sustainable Development Goals (SDGs).

Our goals are divided into three areas - heart, health and home. Examples of the work we have carried out in each of these areas include:

Heart: Commitment to Sustainable Business
To strengthen our corporate governance, the Group appointed a Corporate Governance Committee in 2016. The committee today consists of 8 executive directors of C.P. Group and its listed companies, 4 independent non-executive directors of C.P. listed entities and 6 external independent members. At the same time, we announced our corporate governance principles and developed training courses for executives and staff. Furthermore, to engage more deeply with our stakeholders, the Group became a member of a number of global sustainability organizations such as the World Business Council for Sustainable Development (WBCSD) and United Nations Global Compact. As a UN Global Compact member, we are commited to the UN Global Compact's 10 Principles and have spearheaded the establishment of the Global Compact Network Thailand in order to promote sustainable development in the Thai private sector. We are also commited to submitting an annual report that shows our progress in meeting the sustainability goals.

Health: Commitment to Sustainable Society
Charoen Pokphand Group is committed to developing future generations through education and by providing opportunities. We do this by focusing on 3 areas: firstly, the development and transfer of knowledge and skills; secondly, by enhancing digital preparedness; and thirdly, through the creation of opportunities and access to resources. By building an integrated network through public/private partnerships and work with community organizations, the Group promoted and supported access to education and necessary skills for over 2,000,000 people in Thailand in 2016. We place great importance on social engagement. Through our shared values initiatives, the Group has assisted more than 46,560 smallholder farmers, SMEs and vulnerable groups with career and income development.

Home: Commitment to Sustainable Environment
Charoen Pokphand Group is committed to combating the impact of climate change throughout its supply chain. The Group adopts management practices designed to reduce greenhouse gas emissions at every operational stage, and we also actively promote positive environmental practice with our supply chain stakeholders. In 2016, we expressed our intention to join the UN's 'Caring for Climate' program, which provides a channel through which we can engage with stakeholders and share climate-related solutions. In addition, as part of our commitment to responsible supply chain management, we initiated a comprehensive 'Food Traceability Project'. At present, more than 30 food and commodity products in our supply chain including bananas, maize and fishmeal, have undergone traceability programs through this project.

The examples mentioned above represent only a small number of projects that Charoen Pokphand Group has undertaken. With our commitment to sustainability, along with our network and expertise, the Group will become a major force for positive change, not only for our own businesses but as part of the global community as a whole.

Charoen Pokphand Group is approaching its 100th anniversary. The core reason why we have stood the test of time is our sustainable business model passed from generation to generation. At the foundation of this business model is our "Three-Benefit Principle", through which we are committed to doing all that we can to benefit the countries we operate in, the communities we serve, and our own corporation; including employees and shareholders. Guided by this principle, Charoen Pokphand Group has grown over the years and contributed towards a better economy and society in Thailand and wherever we operate.

The world today faces unprecedented socio-economic and environmental challenges, which include managing resource scarcity in a sustainable manner, climate change, labor shortages, an aging society, urbanization, and the disruptive effects of advanced technologies. These challenges put pressure and expectation on the private sector to adopt sustainable business practices. Charoen Pokphand Group recognizes that our position in society brings both opportunities and responsibilities, which is why we announced the Charoen Pokphand Group Sustainability Principles in 2016 to drive our business towards stable and sustainable growth. These principles lead us to strengthen our organization across 3 key pillars: Human Resources, Systems, and Finance and Investment. Among these pillars, Human Resources is regarded as the most essential.

Charoen Pokphand Group is determined to cultivate a new generation of leaders who are both talented and ethical through our training programs at the C.P. Leadership Institute. These new leaders will embody our Six Core Values: 1. The Three-Benefit Principle; 2. Speed and Quality; 3. Simplification; 4. Accept Change; 5. Innovation; and 6. Integrity and Honesty. They will be advocates of unity and harmony as well as have a strong awareness of the social and environmental responsibilities.

For the organization to grow and prosper, we will not only employ essential training systems, but also invest in the most cutting-edge technologies. These technologies include: automation, robotics, artificial intelligence (AI), cloud technologies and analytics, and intelligence war room. Through these technologies, Charoen Pokphand Group will be able to access information from worldwide sources faster, forecast future trends more accurately, reduce risks, increase safety for our employees and make better decisions regarding sustainability in serving our stakeholders.

Moreover, by investing in new businesses, and collaboration among our business groups or our global partners with awareness of sustainability, we will ensure we have a greater global positive impact on sustainability issues.

Today, Charoen Pokphand Group invests in 20 countries, employs over 300,000 people, and exports goods and services to customers in 140 countries across 6 continents. I fully recognize the responsibility the Chairmanship of Charoen Pokphand Group brings. I am therefore committed to bringing Charoen Pokphand Group into the next century and abiding by our vision and founding sustainable principle which has guided us and contributed to our strength until the present.

I am confident that our committed sustainability plan will bring about positive development not only for Charoen Pokphand Group, but also for Thailand and every country we invest in. We firmly believe that all parts of society must work together to create the balance in equal harmony among economic, environmental and social factors our country and the world need for a sustainable future.