Emmi AG

The company has set a goal to achieve a 60% absolute reduction in Scope 1 and Scope 2 CO‚ÇÇ emissions by 2027 compared with a 2014 baseline and a 25% reduction in Scope 3 emissions in the supply chain compared with the 2019 baseline. It commits to reducing absolute Scope 1 and 2 GHG emissions by 45% by 2027 from a 2019 base year and Scope 3 GHG emissions by 25% per kg of raw milk within the same timeframe. It has established the Emmi Sustainability Model. This includes ambitious goals aligned with a science-based net zero 2050 and a 1.5-degree target and has been approved by the SBTi and appears on the SBTi website. Scope 3 emissions comprise 97% of the company's total emissions, so the company must set a Scope 3 target. It discloses that most Scope 3 emissions come from milk production, which leads to methane emissions. However, it does not disclose a specific methane emission reduction target related to animal farming.

The company commits to reduce Scope 1 and 2 emissions by 45% by 2027 and Scope 3 by 25% per kg of milk by 2027. Both the targets are aligned with the Science Based Targets and appear on the SBTi website. The emission reduction targets cover all operations of the company. Therefore, the geographic scope is said to be universal. Targets are aligned with the 1.5-degree pathway. It has committed to setting an SBTi-validated net zero target.

The company launched the 'KlimaStaR Milk' climate protection project at the start of 2022 in partnership with Nestlé and the milk producer organisations Aaremilch and the Central Switzerland Milk Producers Cooperative (ZMP). The target is to reduce greenhouse gas emissions from agricultural milk production by an average of 20%. It also invests in methane-reducing feed additives and plans to trial this with its suppliers.

The company's overarching climate protection project does include actions to reduce the emissions associated with feed farming. However, the methods employed, beyond a reduction in feed-food competition, are not mentioned. Therefore, it is unclear whether the company is involved in innovative projects.

Although the 'KlimaStaR-Milch' programme also covers animal farming, the company does not disclose any specific innovative projects to reduce or mitigate emissions from active animal farming.

The company discloses Scope 1 emissions of 100,233 mtCO2e, Scope 2 emissions of 1,223 mtCO2e, and Scope 3 emissions of 5,356,929 mtCO2e in the reporting year.

The company discloses that emissions from the cultivation of animal feed are a major source of Scope 3 emissions; 4,436,233 tCO‚ÇÇe of emissions are attributable to milk and bought-in dairy products. It discloses that 4,436,233 tCO‚ÇÇe emissions are attributable to milk and bought-in dairy products in the reporting year. However, it does not disclose the quantitative value of feed emissions rising from feed production needed for the raw milk it sources.

The company has responded to the CDP Climate Change questionnaire in 2022. However, it has not yet been scored, and reports are publicly unavailable. The testing, inspection, and certification company SGS audits the company's environmental data.

The company reports a reduction in GHG emissions by 3.42% from 5,652,043 mtCO2e in 2021 to 5,458,385 mtCO2e in 2022. It reports Scope 1, 2 and Scope 3 emissions, allowing total GHG emissions to be calculated manually by summing all three emission values.

The company acknowledges the risk of climate change on its business operations. However, it has not yet conducted a formal climate-related scenario analysis. Emmi AG discloses that it anticipates to in the next two years.

The company discloses that an increase in energy prices poses a significant risk to the company. To mitigate this risk, the company undertakes and discloses strategic purchasing of energy sources and implements efficiency improvement measures. It discussed the risk of a carbon price on its energy consumption. The same data is unavailable for the current reporting period as the company failed to disclose to the CDP. It makes no other mention of the risks of carbon taxes, and it is unclear whether they are still considering the issue.

The company discusses installing solar thermal energy and wood chip-fired power plants, which will be producing renewable energy and helping to reduce the company’s greenhouse gas emissions from 2027 onwards. However, it does not disclose the quantitative value of capital expenditures aligning with GHG targets or whether environmental considerations are included in capital expenditure decisions.

The company does not directly procure soy for animal feed, as it sources raw milk. However, 10% of its animal feed consists of concentrated feed (soya and cereals). The company also states that it actively ensures that only certified soy is imported to Switzerland. It sources 94% of the milk it processes in Switzerland under the "Sustainable Swiss Milk" (Swiss Green Milk) industry standard. The soy sourcing in the Swiss Green Milk Standard is covered by the "Soy Network Switzerland", which sets industry standards for sustainable soy sourcing. The Soy Network recognises the following standards for sustainable soy sourcing: Bio Suisse, Donau Soja, Europa Soja, ISCC PLUS, ProTerra and RTRS and discloses that 98% of soy the network buyers imported was sustainably sourced. Although it mentions in its Supplier Code of Conduct that suppliers should ensure that no deforestation is caused in connection to its operations, due to the company sourcing milk from outside of Switzerland, it still has exposure to deforestation risks.

The company mentions that all its soy used in milk processing follows the "Sustainable Swiss Milk" industry standard, and 94% is certified. However, the commitment only applies to Swiss operations. The company also mentions it has set a target to sustainably process 100% of milk globally by this standard by 2027. Therefore, it can be concluded that the company has a commitment to source soy responsibly or sustainably.

The company does not report progress against its commitment. Nor did it responded to the CDP Forest Questionnaire in 2022.

In its supplier code of conduct, the company mentions that suppliers should ensure no deforestation, land use change, or destruction of natural habitats occurs. It engages with soy producers via the Soy Network Switzerland, which it is a member of.

The soy network only sources certified soy based on RTRS and similar schemes. However, this only covers Swiss operations. The company has indirect traceability over its soy suppliers via the Soy Network Switzerland. However, this is only applies to the company's Swiss operations.

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

The company discloses that it applied the “WWF Water Risk Filter” in 2019 to all its production sites. The analysis identified sites in Tunisia, California, Mexico and a plant in Chile as risk areas. The company conducts risk assessments every two years. It discusses various measures that have significantly reduced water consumption across all business divisions. The company also discloses water consumption in the reporting period.

The company aims to reduce fresh water consumption in facilities located in water risk areas by 50% and to have an overall reduction in water consumption by 15% by 2027, with 2019 as the base year. So far, the company has achieved a minimal reduction of 1% in water-risk areas and a relative 7% increase in water consumption in non-risk areas.

The company discloses total water withdrawal and consumption by water risk and non-risk areas in the reporting period. However, a few operating units are not part of the calculation. It does not disclose the water withdrawals or consumption by source. The company's water withdrawal data was assessed by external auditors, SGS, in FY2022. It discloses a reduction in both water consumption and withdrawals in 2022.

The company acknowledges the importance of water and water risk in producing its raw materials. The "Swiss Milk Green" program has a requirement to promote biodiversity in feed cropping and forage areas, which also aims to promote water storing potential and protect water bodies from pollution. Furthermore, the company aims to examine the impact it has on water availability and quality at a local level in the milk value chain and decide on measures. However, the company does not explicitly disclose 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 and/or sourced in water-stressed areas. Still, the company states it aims to examine the impact it has on water availability and quality at a local level in the milk value chain and decide on measures.

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 incidences of non-compliance with water quality permits, standards, and regulations.

The company discloses that it records the amount of wastewater produced from its production plants and the chemical oxygen demand of wastewater. However, these figures are not publicly disclosed.

The company discloses that it converts organic waste into biogas. However, it is unclear if the nutrients are recovered from wastewater and then converted into fertiliser.

The company does not disclose information relating to nutrient management in feed farming. 94% of the milk the company processes in Switzerland is certified as "Sustainable Swiss Milk" under the "Swiss Green Milk" certification scheme. The scheme requires farmers to keep livestock in accordance with animal welfare legislation, balance the use of fertilisers, and work for suitable soil protection. However, the company does not explicitly state that it only purchases feed from farms with a nutrient management plan.

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 does not discuss the treatment of manure.

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 does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.

The company commits to offering antibiotic-free brands that comply with Bio Suisse, Demeter, and the National Organic Program (NOP) standards of Switzerland, prohibiting the preventative use of antibiotics and hormones for growth promotion on organic farms. Furthermore, it aligns with swissmilk green, organic, and Demeter farming principles, as well as WWF guidelines to reduce antibiotic usage. Nonetheless, it has not explicitly disclosed these measures, and the comprehensive details of its implemented standards in farming and milk production are not fully disclosed.

The company does not disclose the quantity of antibiotics used.

The company commits to the Five Freedoms and mandates supplier compliance. It enforces Swiss animal welfare legislation among milk producers and requires proof of competence for livestock keepers. It extends animal welfare training and efforts globally, setting expert-driven targets. Collaborations with Bern University and participation in the Pathways to Dairy Net Zero initiative further illustrate its commitment. However, it does not disclose actions taken in response to breaches of animal welfare reported through its whistleblowing channel.

The company is involved in the Regular Animal Outdoor Exercise (RAUS) and Particularly Animal-Friendly Stall Systems (BTS) programmes, prerequisites for the "swissmilk green" quality label, which covers 94% of its processed milk. It commits to minimising transport durations and adheres to Swiss laws on pre-slaughter stunning. Ninety percent of its cows are RAUS-compliant, and over half reside in BTS-compliant free stalls. The company also sources milk from Demeter-certified farms which have the highest standard of animal welfare. However, there's no company-wide commitment to avoid routine animal mutilation, and it is unclear whether its stunning and housing practices are globally implemented.

The company's dairy operations are certified by the Sustainable Swiss Milk program, which covers aspects of animal welfare. It also demonstrates a strong commitment to animal welfare and sustainability, with 94% of its processed milk meeting the 'swissmilk green' standard. Furthermore, its subsidiaries in the United States and Brazil integrate sustainability criteria. However, the Sustainable Swiss Milk program will become mandatory only in 2024. The company's operations are certified under the "swiss milk green" standard, which mandates participation in one of the federal animal welfare programmes, either "RAUS" or "BTS". It also has brands that are organic and Demeter certified, which undergo rigorous certifications and audits.

The company reports that 82% of its dairy cows comply with the Regular Access to Open Pasture (RAUS) programme, and 41% with the Particularly Animal-Friendly Husbandry Systems (BTS) programme. Both programmes have shown consistent year-over-year growth, indicating ongoing improvements in animal welfare.

The company adopts the Sustainable Swiss Milk standard and operates Organic/Bio and Demeter brands, which mandate strict animal welfare conditions. Its milk producers are obliged to adhere to one of the two programs: Regular Outdoor Access (RAUS) and Particularly Animal-Friendly Housing Systems (BTS), which enforce suitable environments and prevent tethering.

The company commits in writing to respect human rights as defined by the UN Guiding Principles.

The company assesses suppliers' risks using a self-assessment questionnaire concerning the demands of its code of conduct for social affairs, which includes regulatory compliance and corporate social responsibility. The company also uses supplier certifications. However, the company does not disclose a due diligence process for its operations or an ongoing human rights monitoring process. Furthermore, it does not disclose how it mitigates or would provide remediation to tackle identified risks.

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

The company commits in writing to prohibit discriminatory practices and forced labour. Furthermore, the company bans child labour, discrimination, abuse and forced labour in its supply chain. However, it does not commit to banning abuse or child labour in its operations or promoting fair wages in its operations or supply chain. Moreover, it does not disclose whether it conducts human rights audits in its direct operations.

The company states that suppliers must grant it the right to audit the policies in the supplier code of conduct. However, it is unclear whether the company conducts audits for policies relating to child labour, discrimination, abuse and forced labour in its supply chain. The company discloses that employees and suppliers are encouraged to report human rights violation cases through the whistleblowing hotline, which has the option of anonymity.

The company commits in writing to provide a safe working environment to employees. It also discloses that Tunisian Centrale Laitière de Mahdia, its largest production site, is certified according to ISO 45001 and ISO 14001. However, no other place is said to hold similar certifications.

The company discloses zero work-related injuries with severe consequences and 340 total work-related injuries in the reporting period. The company's number of work-related injuries increased by 4% in 2022 compared to 2021. In addition, the company discloses zero deaths due to work-related injuries and ill health in the reporting year. Total fatalities have fallen from one to zero from 2021 to 2022. Also, the company discloses an 11% employee turnover rate in the reporting period. However, the company does not disaggregate the rate by seniority level.

The company discloses it supports freedom of association but does not provide the unionisation rate of its workforce. In addition, the company expects its suppliers to respect all their employees' freedom of association and collective bargaining rights.

The company discloses that the % of employees with collective bargaining agreements in 2022 was 53%. However, this figure is limited to specific geographies, as Mexideli 2000 Holding SA de CV and Quillayes are excluded. Moreover, the company is not involved in any collective bargaining agreements in Switzerland. Also, the company discloses it employs 8,221 full-time and 838 part-time employees in the reporting period. It details the number of permanent and temporary employees, interns, trainees, and external employees.

In Switzerland, the company discloses that it operates a certified quality management system (QMS) by the principles of ISO 9001 and ISO 22000, integrated into FSSC 22000. Outside of Switzerland, it discloses that certification of the QMS is based on individual market requirements, meaning different GFSI-recognised standards can be applied. However, the portion of GFSI-certified sites is not explicitly mentioned, nor can it be inferred. Its suppliers are obliged to manufacture products by GFSI and provide certified proof. However, the proportion of suppliers which are GFSI certifGFSI-certifiede clarified.

The company conducts internal and external product quality-related audits. However, it does not disclose the number or frequency of food safety audits during the reporting period. It mentions that if the supplier cannot guarantee the product's safety, it should inform the company beforehand and in writing. However, it does not discuss corrective actions in the case of non-conformances. Further, it does not confirm whether it is developing a consumer-facing technology for food safety.

The company mentions that if it finds any quality deviationthe supplier deliversed by the supplier, it can ask for a product recall of the affected finished products. However, it does not describe the product recall system and is encouraged to do so. Further, it does not report information on recall incidents during the reporting period. However, no recalls were detected in the media screening.

The company does not disclose information related to market bans in the reporting period, and none were detected in media screening.

The company discloses that the board of directors is responsible for the sustainability strategy. However, the preparatory and operational tasks are delegated to the Sustainability Steering Committee and Sustainability Officers. In addition, the company has engaged with various stakeholders and conducted a complete materiality analysis that identified 16 issues of particular relevance for the business and its stakeholders. The company identified reducing emissions, water use, waste, food waste, and packaging, and developing employees as its primary material issues. The company's Sustainability Steering Committee approves the final results of the materiality process. However, the company does not mention whether the board of directors is involved in the assessment. The company has a member of group management, Thomas Morf, with experience in innovation. However, the company does not disclose board-level innovation expertise or board-level or executive-level expertise in food safety and sustainability.

Sustainability issues form part of the remuneration for the company's Chief Supply Chain Officer and the Chief Human Resources Officer. However, it needs to be clarified which sustainability issues or targets the remuneration applied to or the percentage of their overall remuneration that this is linked to. The company engages with several public policy officials and trade associations on clean energy, climate issues, alternative proteins, responsible cultivation and sustainable procurement of soy used for feed, and complementary veterinary medicine. The company also provides a complete list of memberships and associations. However, it does not discuss aligning its policy-engagement strategy to restrict global temperature rise to 1.5°C.

The company states that it drives innovation at the group level and in subsidiaries. Furthermore, sustainability is a critical component of the group's innovation strategy, with reducing GHG emissions, reducing waste, and digitisation seemingly being the key focus. Furthermore, the group identifies innovating in its more niche markets as one of its strategic goals, such as developing and growing its innovative alternative plant-based dairy products. Moreover, the group collaborates with research associations and universities on research and development topics, including alternative proteins. However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.

The company discloses that it systematically focuses on trends in growth areas, profitable markets and strategic niches with concepts and innovations geared towards creating consumer benefit, specifically in the plant-based dairy alternatives market. It reported a growth of 11% in the other products/services segment in FY22, which is majorly attributed to the continued growth of vegan brand "Beleaf". The company is encouraged to disclose sales or revenue generated from alternative protein product lines and to set a timebound target to diversify protein sources.

The company has launched its plant-based line under "Beleaf" and "Begetal". The brand produces vegan products, including yoghurt alternatives, cheese alternatives, and drinks such as cold coffee. The "Beleaf" brand constantly expands, launching several new developments in the reporting year. It invests in R&D to continue this expansion by experimenting with raw ingredients and protein sources that can be sourced locally. Furthermore, it is dedicating R&D to optimising existing products regarding nutritional value.