Darling Ingredients Inc
DAR:NYSE US2372661015
Key Information
HQ:
United States
Market Cap:
$10.27bn
Primary Markets:
North America, Europe & Russia, LATAM, Oceania, Asia
Company Information
Company Summary
Darling Ingredients Inc. is headquartered in the U.S. and is a manufacturer, processor, and distributor of ingredients extracted from edible and inedible bio-nutrients. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customised speciality solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertiliser industries. The company also collects and transforms various animal by-product streams into useable and speciality ingredients, such as collagen, animal proteins and meals, organic fertilisers, and fuel feedstock, among others.
Waste & Pollution Engagement
Analysis Overview
Risk Assessment Downstream risk assessment quality and transparency Risk Mitigation Circularity Company Engagement
Summary
Darling Ingredients business is entirely circular. However, there is no discussion of growth for its fertiliser business segment (or targets) despite its core biofuel segment producing nutrient-rich digestate suitable for fertiliser.
Analysis Breakdown
Risk Assessment
Medium
Coverage of water quality risk assessment
The company conducts a water risk assessment annually since 2020. The company covers all its direct operations in the risk assessment. The company discloses in 2019 it used WRI's Aqueduct, WWF's Water Risk Filter, Ecolab's Water Risk Monetizer.
The company mentions that in the risk assessment conducted in 2019 it found that three sites, excluding non-critical sites, have high basin-level water risk. Two are located in California, and one is in New Jersey. It is unclear whether these sites are at high risk from a water quality or scarcity perspective.
Transparency and disclosure of water quality indicators
The company mentions that it monitors various effluent parameters such as BOD, TSS, Nitrate, but it does not disclose the % of sites whose average wastewater metrics are in line with the IFC EHS guidelines.
The company mentions it had zero events of non-compliance associated with water quantity and/or quality permits, standards, and regulations.The company does not disclose the water-related CAPEX or OPEX. It mentions that many of its large projects have a water-related aspect that is difficult to quantify, and that it believes that its water-related capital funding will continue to grow.
Recognition of nutrient pollution risk on biodiversity
The company mentions it is committed to minimising its impacts on ecosystems and promoting biodiversity near its operations. It does not discuss areas of high biodiversity value in geographic regions where it operates and the impact of nutrient pollution on these areas.
The company includes biodiversity and land use in its materiality assessment but it does not describe how this drives its water quality assessments.
Downstream risk assessment quality and transparency
Poor
Inclusion of the downstream use of products in risk assessment
The company does not disclose information.
Acknowledgment of regulatory risks
The company does not disclose information.
Impact analysis of products on nature-related risks and climate
The company does not disclose information.
Risk Mitigation
Poor
Target-setting for water quality
The company mentions that in the risk assessment conducted in 2019 it found that three sites, excluding non-critical sites, have high basin-level water risk. Two are located in California, and one is in New Jersey. The company says that these sites have been prioritised for water risk mitigation activities, but the company does not describe any details. Furthermore, it is unclear whether the sites are at risk from a water quality or water scarcity perspective.
Support to downstream farmers
The company does not disclose information.
Strategy on products with lower environmental impact
The company does not disclose information.
Circularity
Medium
Pilot projects around nutrient circularity
The company mentions it transforms waste from grocery stores, restaurants and slaughterhouses into either methane, which is then converted into electricity and heat, or material used in nutrient-rich fertilizer.
Disclosure of investment in circular solutions
The company mentions that it invests in research and development to create new products, but it does not disclose the quantity invested for fertilisers.
Targets to increase share of manure under circular initiatives
The company’s fertiliser products are all organic and circular but the company has no discussion of growth for this business segment (or targets) despite its core biofuel segment producing digestate suitable for fertiliser products.
Disclosure of fertiliser revenue coming from circular sources
All the company’s fertilisers are organic, made from recycled waste.
Company Engagement
Poor
Level of company engagement with the coalition
The company provided a response to the investor letter and responded to the engagement questions. The company did not meet with the investor signatories. The company did not acknowledge the FAIRR’s assessment and did not provide feedback.
Workstream Information
2024/25 level
Poor
Last Updated:
26 June 2024
2024/25 Resources
Waste & Pollution Engagement