Astral Foods Ltd

The company does not have a science-based emission reduction target.

The company does not disclose whether it has set targets to reduce GHG emissions from Scope 1 and 2. It also discusses measures and strategies to reduce its dependence on coal-produced energy. It does not disclose whether it has set targets to reduce Scope 3 GHG emissions.

The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming

The company does not engage in innovative projects to reduce or mitigate emissions from animal farming

The company discloses 195,467 tCO2e of Scope 1 emissions and 336,515 tCO2e of Scope 2 emissions. However, it does not disclose Scope 3 emissions.

The company does not disclose its GHG emissions from animal farming.

The company has not responded to the CDP Climate Change questionnaire for 2022. It discloses that its ESG report is only viewed by IBIS.

The company's Scope 1 emissions increased from 184272 tCO2e in 2021 to 195467 tCO2e in 2022, whereas Scope 2 emissions decreased from 340448 tCO2e in 2021 to 336515 tCO2e in 2022. Therefore, total emissions increased from 524720 tCO2e in 2021 to 531982 tCO2e in 2022. It does not disclose a quantitative decrease in emissions from feed or enteric fermentation, or manure management.

The company discusses climate change as a potential risk. It will consider implementing the recommendations of the TCFD but does not commit to undertaking a climate-related scenario analysis.

The company procures commodities for their animal feed, and low crops, high raw material prices and volatility are material risks to the company. It battled high maize and soya prices due to drought in the US and Brazil in the reporting year, and carbon emissions are showing no signs of abating, meaning the risk of more shortages in South Africa is high. It reports that increased energy cost is a business risk and is moving towards alternative energy sources to mitigate the risk. The company has invested R3.1 million to install a solar plant at National Chicks Boschkop. It discloses that its operations in Eskom and local municipalities are at risk of carbon taxes on electricity, and the unit is expected to start paying tax in 2026. It will reduce the use of coal and use AI technology to increase energy efficiency to prevent the high carbon tax. The company is also cooperating with an international company to explore making chicken litter into biogas to replace LPG at the farm. However, it does not disclose the number of financially material events that occurred due to climate risk in the reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

Astral Foods is a vertically integrated poultry producer and one of its key activities is the manufacturing of animal feed. Soy is listed as a significant component of the animal feed it produces. However, the company does not disclose information on how it manages deforestation risks linked to soy. Further, the company does not disclose that all soy is sourced from 100% deforestation-free feed suppliers.

The company does not disclose having a deforestation/conversion-free target for soy.

The company did not respond to the CDP Forests questionnaire.

Soy represents a significant component of feed and represents a major cost to the company. However, it does not disclose information on how it engages with soy suppliers on deforestation risks and does not mention deforestation within its code of conduct.

The company does not disclose how compliance in monitored or what actions are taken if non-compliance occurs. Further, the company does no disclose the level of traceability it has of its soy supply chain.

The company does not discuss innovations and/or practices to move towards sustainable feed sources.

The company acknowledges that water security is a risk to its business operations as South Africa is a water-scarce country. It reports how it mitigates water risk and mentions that it monitors water supply interruptions at its poultry processing plant in Standerton, which is a high-risk location. However, the company does not explicitly discuss water scarcity risks for its other broiler processing plants in South Africa nor its feed mill facilities in South Africa, Zambia and Mozambique. It is unclear whether the company has conducted a formal water risk assessment to identify regions prone to water scarcity risk. It reports a number of water savings initiatives. For example, it has installed reverse osmosis water treatment plants at County Fair and Goldi, which resulted in 14% of all water consumed during the reporting year being recycled. The company plans to increase water reservoir capacity, adopt water savings initiatives, continue purification and recycling of water, and switch to alternative water sources. Astral Foods also discloses its total water consumption for the reporting period.

The company does not disclose a target to reduce water consumption.

The company reports water consumption by source. However, it does not disclose water consumption or water withdrawal by water stress level. It discloses that R50 million was spent on the Goldi processing plant and that R147 million was spent on water and electricity supply interruptions in the last reporting year. The company has not responded to CDP Water Security for the year 2022. Further, it reports that water consumption has increased by 5.83% in the last reporting period.

The company operates eight feed mills that supply its downstream poultry operations and external protein producers. However, it does not disclose information relating to water use or water scarcity risks in feed farming.

The company does not disclose feed water intensity, or the proportion of feed sourced from water stresses areas. Further, the company does not provide evidence that it is investing in sustainable feed production from a water use perspective.

The company does not disclose the proportion of animal protein commodities produced or sourced from water-stressed areas. Although it discloses that water scarcity is considered a critical risk that can adversely affect activities and operational results, it does not disclose how it addresses water scarcity risks in animal farming.

The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company does not disclose the number of environmental non-compliance prosecutions or fines it has received. Nor does it disclose processing facilities that operate in locations with high and medium water stress from a quality perspective. The company has reported the amount of water saved due to conservation and efficiency improvements in the reporting period. However, it does not disclose any quality and/or volume targets for wastewater.

The company discloses the volume of wastewater discharged in the last reporting year. However, it does not disclose the quality of the wastewater discharged. The company did not respond to the CDP Water Security 2022.

The company has entered into an agreement to convert hatchery waste into compost, which is then transported to a nearby farm and used to enrich the farm's soil. The company discloses the volume of hatchery waste processed in this way. However, it does not disclose undertaking this process for waste from its processing facilities. It discloses an increase in the volume of wastewater discharged in the last reporting year but does not disclose information about the quality of water discharged.

The company does not disclose information related to nutrient management in feed farming despite being an integrated poultry producer involved in the manufacture of animal feed.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company is working on a waste-to-energy project to convert chicken litter into biogas. This will then be further processed into compressed natural gas to replace LPG at its farms. However, this project is not yet active.

The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.

The company sells chicken litter to compost manufacturers.

The company endorses using antimicrobials for therapeutic treatments only, promoting preventative measures like vaccination and hygiene in cow health management, and prohibiting antimicrobial use in broiler chicken operations. However, a universal policy extending beyond these operations lacks.

The company discloses that antibiotics are used under strict veterinary supervision. However, it does not disclose its overall usage of antibiotics, the quantity used, or the reasons for usage.

The company discloses a statement emphasising the importance of animal welfare and uses the South Africa Poultry Association's (SAPA) Code of Practice as a guide. However, it lacks detail on its support for the Five Freedoms and the specifics of the SAPA Code. Additionally, it does not report any commitment to engage and train employees on animal welfare issues.

The company discloses that its chickens are cage-free and provided with quality bedding and adequate lighting to enable natural behaviours. It adopts South African Poultry Association (SAPA) Code of Practice for bird welfare. However, the company does not commit to humane stunning, avoiding routine mutilation, or long-distance transportation.

The company is monitored by internal and external parties for adherence. However, it does not explicitly commit to having these parties focus on animal welfare.

The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.

The company discusses adjusting lighting to facilitate natural sleep patterns for broilers. However, it does not disclose details on suitable environments like specific lighting levels, air quality standards, or access to perches. Additionally, it omits information on maximum stocking densities, water-bath stunning, and the use of higher-welfare breeds.

The company has an annual work plan to support and respect internationally proclaimed human rights like The UN Global Compact Principles and The UN SDGs.

The company does not discuss how it assesses actual and potential human rights risks.

The company does not disclose whether it identified any human rights risks in its operations through human rights due dilligence.

The company commits in writing to prohibit child labour, forced labour, and discrimination in its operations. However, it does not audit or extend these policies to its suppliers. The company does not disclose its policy on sick pay or commit to paying fair wages.

The company has a grievance mechanism for its operations, which Deloitte, a third party, handles. It explains that incidents can be reported through 'Tip-Offs Anonymous'. An internal audit then investigates reports, and appropriate action is determined. However, it does not mention whether the grievance mechanism is designed in consultation with stakeholders or state whether suppliers also have access to a similar tool. In 2022, the company received 36 calls through the grievance mechanism, resulting in 31 reports being generated. However, the reported grievances were not categorised by health and safety and violations of worker rights.

The company commits in writing to protect the health and safety of its workforce by preventing work-related injuries. However, it does not explicitly mention any relevant certification, and it is unclear whether they have a health and safety committee with worker representatives.

The company discloses its injury frequency as 1.18 in FY2022. This represents an improvement in the company's injury frequency rate from 1.70 in FY2021. The company reported one fatality in FY2022, improving from three in FY2021. The company does not disclose its turnover rate.

The company provides an introductory statement on the right to freedom of association and collective bargaining. As of the current reporting period, the company has 3395 permanent employees and 595 part-time employees in trade unions. The company does not describe measures taken to support collective bargaining agreements. Still, it meets with trade unions and is committed to building relationships with them, demonstrating its support for freedom of association. However, the company does not include a requirement or expectation to set a policy on freedom of association and collective bargaining in its supplier code of conduct.

The company discloses that 3395 permanent and 595 part-time employees belong to trade unions. The company also discloses that 9236 total employees are permanent, and the remaining 3181 are part-time contract employees.

The company discloses that all four processing facilities have FSSC 22000 certification, which is GFSI-recognised. However, it does not disclose that suppliers are required to have GFSI certification, nor the portion of those that do.

The company discloses that regular audits for food safety are performed by independent risk consultants, customers and independent standards authorities. However, the number and frequency of audits are not specified, and corrective action rates are not disclosed. It states it is mitigating food safety risks via ongoing improvements in quality and production technology. However, it does not specify whether this involves consumer-facing technology.

The company discloses that it has risk mitigation plans related to traceability and product recall exercises in response to disease risks in poultry. However, it does not describe these product recall exercises or disclose the number of recalls in the reporting period.

The company did not disclose information on market bans during the reporting period; none were detected in the media screen.

The company discloses that it has a Social and Ethics Committee, and the board is formally mandated to oversee ESG issues. In addition, it reveals various material problems in its integrated report, including biosecurity, water and electricity infrastructure constraints, raw material availability and price, food safety and poultry supply and demand imbalance, among others. However, more information should be given regarding board involvement in the materiality assessment. Further, the company must report having board or executive-level experts in sustainability or innovation. However, a company executive management member, Nikki Moodley, has experience in food safety.

The company provides details of its executive remuneration policy. This consists of total guaranteed pay and short-term and long-term incentives, but these are not related to sustainability. The company does not disclose memberships with trade associations, alliances and coalitions or engage with civil or trade associations on ESG issues.

The company does not disclose a strategic approach to sustainability innovation or state whether it benchmarks itself against peers in sustainability and innovation.

The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources

The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.