Cherkizovo Group PJSC
GCHE:RM RU000A0JL4R1
Key Information
HQ:
Russia
Market Cap:
$1.67bn
Primary Market:
Europe & Russia
This company is no longer assessed by the Coller FAIRR Protein Producer Index.
Coller FAIRR Protein Producer Index
Analysis Overview
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Analysis Breakdown
Risk Score
11/100
High Risk
Greenhouse Gas Emissions
1/100
Scope 1, 2 & 3 Target
5/100
Type of Target
The company has not set an emissions reduction target.
0/0
Strength of Target - Non-SBT
The company mentions that it aims to reduce energy consumption and use of natural resources, for which it has set targets in line with Russian legislation and best industry practices. It also monitors environmental conditions at the production facilities, does regular assessments and takes measures to prevent and minimise any negative impact on the environment in the regions where it operates. However, it does not indicate if it has set a quantitative target to reduce energy consumption. Furthermore, the company has not set any targets to reduce GHG emissions from Scope 1 and Scope 2. The company mentions that it engages in the production of animal feed and also procures raw materials from third-party suppliers. It states that it derives revenue from four main sources: sales of processed meat products, poultry meat, pork and crop products. Therefore, this should be reflected in the emissions disclosure for Scope 3. However, the company has not reported any quantitative data on Scope 3 emissions.
0.25/2
Strength of Target - SBT
0/3
Innovation on GHG Emission Reduction
0/100
Innovation to Reduce Agriculture Emissions
The company does not discuss working with suppliers to reduce emissions from agriculture.
0/1
Feed Farming Innovation
The company does not disclose innovations to reduce emissions from feed farming.
0/2
Animal Farming Innovation
The company does not disclose innovations to reduce emissions from animal farming.
0/2
Quality of GHG Inventory
0/100
Quality and scope of GHG inventory Completeness
In the previous reporting period, the company disclosed aggregate emissions without a breakdown of Scope 1, 2 and 3. However, the same is not reported this year.
0/1.5
Feed & Animal Farming Emissions
The company does not disclose emissions from animal farming or feed production.
0/2
Transparency of GHG Inventory
The company does not disclose information on climate to the CDP, nor does it disclose if its data is audited by a third party.
0/1.5
Emissions Performance
0/100
Overall Emission Performance
The company does not disclose its emissions performance. Nor does it disclose a quantitive decrease in emissions arising from feed or enteric fermentation or manure management.
0/5
Climate-related Scenario Analysis
0/100
Climate-related Scenarios Analysis Conducted
The company mentions that grain prices are subject to high fluctuations due to weather conditions and government rules and policies changes. However, the company does not undertake a climate-related scenario analysis.
0/1
Disclosure of Analysis Results on Material Risks
0/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company has not committed to aligning its CAPEX with its GHG targets.
0/1
Deforestation & Biodiversity
60/100
Deforestation/Conversion-free Target - Soy for Animal Feed
90/100
Risk Assessment to Identify High-risk Locations
The company is a vertically integrated meat processor, which also grows crops, including soy, in Russia to produce animal feed. It states that it is self-sufficient in its feed production for its animal farming operations. Russia is not considered a high-risk deforestation area.
4.5/5
Engagement, Monitoring & Traceability - Soy for Animal Feed
30/100
Supplier Engagement
The company is a vertically integrated meat processor, which also grows crops to produce animal feed. Soy is one of several crops yielded by the company, with additional supply being sought from third parties. However, the company does not disclose information on how it engages suppliers on the deforestation risks linked to soy or reference deforestation or biodiversity protection in its supplier code of conduct.
0/1.25
Compliance monitoring & Traceability
The company does not disclose monitoring its suppliers on deforestation or the extent to which it has traceability of soy sourced.
1.5/3.25
Feed Innovation
0/0.5
Water Use & Scarcity
0/100
Water Use & Scarcity in Facilities
0/100
Monitoring Water Consumption & Withdrawals
The company does not disclose water-saving measures or water consumption. The company has not conducted an analysis to identify its processing facilities operating in water-stressed areas.
0/0.75
Target to Reduce Water Consumption & Withdrawals
The company has not set a water withdrawal or consumption target.
0/1
Disclosure & Performance of Water Risks in Facilities
The company disclosed that it invested 334 million RUB in the previous reporting period towards environmental projects. However, the company has not disclosed any water-related CAPEX information in the current reporting period.
0/3.25
Water Use & Scarcity in Feed Farming
0/100
Supplier Engagement in Water Use in Feed Farming
The company is a vertically integrated meat processor, which also grows crops to produce animal feed. It yields a variety of crops including wheat, soy, corn, and sunflower with additional ingredients like premixes purchased from third-party. However, it does not explicitly address water scarcity risks in feed farming.
0/3
Disclosure of Water Risks in Feed Farming
0/2
Water Use & Scarcity in Animal Farming
0/100
Supplier Engagement in Water Use in Animal Farming
The company operates 8 poultry facilities and 16 pig farms. It also runs 1 turkey production facility in Russia as a joint venture with Grupo Fuertes. However, it does not explicitly address water scarcity risks in animal farming.
0/3
Disclosure of Water Risks in Animal Farming
0/2
Waste & Pollution
2/100
Wastewater at Facilities
0/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company does not report about non-compliance with water quality permits but states that it monitors wastewater emissions. The company has not conducted an analysis to identify its processing facilities operating in water-stressed areas. The company has not set quality or volume targets.
0/1.5
Transparency on Water Pollution Risks
The company does not disclose information to CDP.
0/2
Performance on Wastewater Quality & Volume Discharged
0/1.5
Nutrient Management in Feed Farming
0/100
Supplier Engagement in Nutrient Pollution Risks
The company is a vertically integrated meat processor, which also grows crops to produce animal feed. It yields a variety of crops including wheat, soy, corn, barley and sunflower with additional ingredients like premixes purchased from third-party. The company states that it has 300 thousand hectares of land under farming. It mentions that it cares about the future and adopts a sustainable approach in its agribusiness to preserve and increase soil fertility. However, it does not discusses details on nutrient management.
0/4
Innovation to Improve Nutrient Management in Feed Farming
0/1
Manure Management in Animal Farming
7/100
Disclosure of Pollution Risks from Manure
The company discloses that the manure from its production facilities has been certified to be used as an organic fertilizer in farms. The company does not conduct risk assessments to identify locations that are at high-risk of or especially susceptible to nutrient pollution.
0.35/1.25
Supplier Engagement in Manure Management
0/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company does not incentivise farmers to integrate nutrient management or invest in feed to reduce the nutrients excreted in manure. The company does not disclose any efforts to engage local communities.
0/2.25
Antibiotics
4/100
Policy on Antibiotics Use
8/100
Policy on Antibiotics Use
The company has antibiotic free brands but does not publicly disclose it's group-wide antibiotics policy. It does not disclose any measures taken to reduce the demand for or usage of antibiotics in it's operations, aside from mentioning that probiotics were used during a trial in the reporting period.
0.4/5
Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
The company does not disclose the quantity of antibiotics used in the reporting period in any capacity, nor does it disclose it's reasons for the use of antibiotics during the reporting year.
0/5
Animal Welfare
2/100
Animal Welfare Policy
5/100
Welfare Policy
The companies' Dajajti brand emphasizes the importance of animal welfare and states that its animal welfare standards ensure the humane treatment of animals throughout their life and aims to safeguard them against hunger, thirst, discomfort, disease and distress. In the previous reporting period, the company stated that all employees in growing, slaughtering, and primary processing facilities received training and are qualified on animal welfare. However, in the current reporting period, the company only talks about providing training in the areas of food and occupational safety and HR procedures. It does not discuss measures taken if animal welfare is breached Lastly the company does not disclose investing in research and development for animal welfare.
0.25/2
Key Welfare Issues
In the previous reporting period, the company mentioned that it follows global standards for live pigs transportation, like ensuring human treatment of animals during loading/unloading, providing comfortable conditions at all stages of transportation. However, it does not provides any information about transportation of animals in the current reporting period. The company states that its Dajajti brand strictly corresponds to the halal standards which follow the process of slaughter by hands without stunning. The company does not disclose information for other brands. Further, the company does not disclose commitments to limit confinement, restrict mutilation, environmental enrichment and higher welfare breeds.
0/3
Assurance & Certification
0/100
Auditing & Assurance by an Animal Welfare Organisation
In the previous reporting period, the company mentioned that it conducts regular audits and inspections to assess the level of safety at its production facilities. It also stated that to be a supplier of McDonald’s, the company needs to be fully committed to promoting Animal Welfare standards in line with McDonald's requirements. However, no information is disclosed in the current reporting period.
0/4
Public Reporting on Welfare
The company does not report on welfare metrics.
0/1
Performance on Key Material Risks
0/100
Performance on Key Material Welfare Risks by Protein
Pork: The company does not discuss prohibiting gestation crates, tail docking and surgical castration in pork production. Broiler Chicken: The company does not discuss stocking densities, waterbath stunning or higher welfare breeds in poultry.
0/5
Working Conditions
1/100
Human Rights
0/100
Strength of Policy
The company does not disclose information relating to a human rights policy.
0/1
Due Diligence Process
The company does not disclose how it assesses actual and potential human rights risks.
0/3
Evidence of Remediation
The company does not disclose any information on how it mitigates risk and remediates people and/or communities.
0/1
Fair Working Conditions
0/100
Policy for Direct Operations
In the previous reporting period, the company provided a high-level discussion on the prohibition of forced/child labour, anti-discrimination in its operations and the promotion of fair wages. However, it does not provides any information on human rights in the current reporting period. The company does not include fair working conditions in its supplier policy. The company does not disclose whether it provides sick pay to its workers.
0/3
Monitoring & Discosure
The company does not disclose having a grievance mechanism in place.
0/2
Safety & Turnover Data
5/100
Disclosure of safety and turnover data
In the previous reporting period, the company had described an Occupational Health and Safety Policy in its Annual Report. However, in the current reporting period, no information is disclosed about employee health and safety. The company does not disclose the proportion of sites which have a health and safety committee comprised of worker representatives. The company does not discuss antimicrobial resistance risk to workers.
0/2
Committee representation of workers
The company had previously reported that its lost time injury frequency rate (LTIFR) was 0.76 in 2020. However, in the current reporting period, no information on the injury rate is disclosed. The company does not report fatality data. In the previous reporting period, the company stated that the voluntary turnover rate decreased to 21% as compared to 2019. However, no data is disclosed this year.
0.25/3
Freedom of Association
0/100
Strength of Policies
The company does not provide a basic statement on the right to freedom of association and does not disclose the unionisation rate of its workforce. The company does not provide a description of measures taken to support rights. The company's supplier code of conduct does not include a requirement/expectation to set a policy on freedom of association and collective bargaining.
0/3
Disclosure of Collective Bargaining Metrics
The company does not disclose the percentage or the number of workers covered by collective bargaining agreements and does not disclose that bargaining agreements cover all workers regardless of contract type. For FY2020, the company disclosed the percentage of permanent workers and non-payroll workers. However, it is not disclosed for FY2021.
0/2
Food Safety
28/100
Food Safety System
25/100
Certifications
The company states that one value-add production site has a GFSI-recognized certification. Additionally, the company discloses that export products have FSSC or ISO 9001 certifications. The company does not disclose the proportion of facilities that are GFSI-certified. The company does not disclose that suppliers are expected to have GFSI certification and does not disclose the porportion of suppliers certified with GFSI certification.
1.25/3.5
Performance
0/1.5
Product Recalls & Market Bans
30/100
Product Recall Systems
The company does not discuss having a product recall system in place.
0/3
Performance
The company discloses that its exports to China were temporarily suspended due to Covid. The company does not disclose information related to product recalls and there were no product recalls detected in media screening.
1.5/2
Sustainability Governance
0/100
Assessment of a Company's Sustainability Governance
0/100
Board Sustainability
The company mentioned in the previous reporting period that health, safety and environmental matters are overseen by the Chairman of the Board of Directors. It also mentions that issues relating to sustainable development are managed by different functions. However, the same information is not reported this year. The company does not disclose having a board member with expertise in sustainability, food safety, product development, or innovation.
0/2
Incentives & Policy Engagement
The company does not disclose whether it engages with public officials or trade and civil associations on ESG issues. It does not disclose whether it has set executive monetary remunerations linked with sustainability performance.
0/2.5
Innovation & Benchmarking
The company states that it has put up a research and testing center with an "innovative" laboratory. However, the innovation does not seem to be focused on sustainability.
0/0.5
Alternative Proteins
0/100
Diversification of Products to Alternative Protein Sources
0/100
Existing product portfolio
The company mentions that it offers organic products in the premium chilled-poultry segment in Moscow named 'Domashnya Kurochka'. However, it does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.
0/2.5
Investing for future growth
The company has not publicly acknowledged protein diversification as a material business issue.
0/2.5
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Workstream Information
2022 Risk Score:
11/100
Level:
High Risk
Ranking:
/60
Main Protein:
Poultry and eggs
Assessed Proteins:
Poultry and eggs, Pork
Company Feedback Given:
Yes
Last Updated:
6 December 2022
2022 Resources
Best Practices from 2022 and Updates from the Protein Producer Index Webinar Index Asia Trends Report 2022/23 (Mandarin) Index Asia Trends Report 2022/23 (English) About the Index Trends Report Coller FAIRR Protein Producer Index