Water Risk Assessment

The Company recognizes the need for effective and flexible water resource management. To support this, it regularly assesses water-related risks across its entire value chain, including risks associated with water dependency and potential impacts—such as physical risks (e.g., droughts and floods), social risks (e.g., community water needs), and regulatory risks (e.g., changes in water laws and requirements). For new operational sites, the Company also reviews historical flood and drought data to inform decisions on whether to build, lease, or acquire facilities in a given location.

Water Risk Assessment

Dependency Assessment

Impact Assessment

Covering 3 Aspects

Physical Aspect

Water Quantity

Availability of water both in the present and the future.
Water Quality

Quality of water withdrawal and discharged both in the present and the future.
Natural Events

Such as floods and droughts.

Social Aspect

Community and Stakeholder Impacts: Effects of water withdrawal and discharge on communities and stakeholders.
Challenges or Conflicts: Arising from the shared use of water resources.

Regulatory Aspect

Compliance: Adherence to current laws and regulations, along with preparedness for future regulations.
Changes in Water Pricing Structures.

Scope of Assessment

Covering own operations, suppliers, customers, and partners, while also considering both the location and type of activities.

Supporting Information for Assessment

Historical records regarding floods and droughts.
The Company’s water withdrawal volume.
Information on water stress in operational areas, analyzed through the Aqueduct Water Risk Atlas developed by the World Resources Institute (WRI).

Tools for Assessment

Conducted through internationally recognized tools and databases, such as the ENCORE Biodiversity Module, WRI Aqueduct, and WWF Water Risk Filter. Additionally, the assessment includes scenario analysis of future socio-economic conditions and physical climate change scenarios, such as SSP1 RCP2.6, SSP3 RCP7.0, SSP5 RCP8.5, and MICRO A1B, in optimistic, medium, and pessimistic scenarios.

Results of Water Risk Assessment

Impacts and Dependencies throughout the Value Chain

	Activities of Suppliers	Activities of CPF
	Feed Raw Material	Feed	Swine Farming	Poultry Farming	Aquaculture	Food Processing
Dependencies
Water Supply
Water Purification
Impacts from Business Activities
Water Consumption
Water Pollution

Very Low

Low

Medium

High

Very High

Remark: Based on the ENCORE database and the nature of the business activities.

Exposure to Water Stress

The assessment evaluates the volume of freshwater withdrawals from the Company’s operations in conjunction with Baseline Water Stress data sourced from the Aqueduct Water Risk Atlas (as of February 2026) to identify the risk levels of operational sites. Consequently, operational sites across different business groups and countries are subject to varying degrees of water risk management measures and target setting.

Remark: The assessment scope covers 92% of the total operational sites, excluding data from operations in China, Russia, and Sri Lanka.

Future Security of Water Resources for High-Risk Operational Sites

Scenario	Current - 2025	Future - 2030			Future - 2050
Scenario	Current - 2025	Optimistic	BAU	Pessimistic	Optimistic	BAU	Pessimistic
Water Quantity	8%	28%	33%	43%	29%	31%	42%
Water Quality	12%	14%	16%	17%	22%	30%	35%
Local Conflict	8%	42%	42%	42%	42%	42%	42%
Changes in Regulations	0%	0%	10%	89%	0%	94%	99%

Remark:

Based on the WWF Water Risk Filter, the analysis considers the following scenarios: the Optimistic Scenario is derived from RCP 2.6 - 4.5 & SSP1; the Business-as-Usual (BAU) Scenario is derived from RCP 4.5 - 6.0 & SSP2; and the Pessimistic Scenario is derived from RCP 6.0 - 8.5 & SSP3. The assessment scope covers 92% of total operational sites, excluding data from operations in China, Russia, and Sri Lanka.

Water Risk Management Measures for High-risk Operational Sites

Management and Planning Measures

Developing water management and impact mitigation plans tailored to specific areas, overseen by senior management.
Reviewing site-specific business continuity plans (BCP).
Closely monitoring physical water-related indicators, both internally and externally.
Frequently monitoring changes in laws, regulations, and water pricing.

Engineering Measures

Analyzing water management systems and ensuring ongoing preventive maintenance.
Improving or installing additional water quality enhancement systems.
Continuously improving water efficiency and adhering to water quality standards.

Communication Measures

Conducting community surveys and developing community engagement plans.
Collaborating with local stakeholders on various issues.
Educating both internal personnel and external parties on effective water management practices.

Initiatives and Highlights

El Niño-La Niña Flood and Drought Response Plan

The livestock business in Thailand prepares for potential disasters by assessing flood and drought risks across all major operating areas—such as animal feed mills, livestock farms, and processing plants—as well as the farms of key business partners.