Grupo Bafar SAB de CV

The company does not have a Science-Based Target (SBT) for reducing greenhouse gas emissions. It does not have a specific target for reducing methane emissions from animal farming.

The company mentions energy-saving initiatives and a project focused on energy efficiency through sensors in refrigeration equipment, but it does not disclose specific targets related to Scopes 1 and 2 emissions. B-Energy, a subsidiary of the Group, supplies part of the thermal energy needs of the Chihuahua plant, producing about 8 megawatts of energy per hour through tri-generation processes. This process reduces CO2 emissions, saving approximately 2,300 tons per year. However, it does not disclose specific targets related to Scope 1 and 2 emissions nor provides information about how much these initiatives cover their Scope 1 and 2 emissions. It does not disclose whether it has set targets to reduce GHG emissions for Scope 3.

The company does not disclose 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 provides a detailed disclosure of both Scope 1 and Scope 2 emissions. It specifies that Scope 1 emissions, including livestock and fuel consumption, amounted to 50,575.04 tonnes of CO2 equivalent (CO2e) in 2021. On the other hand, Scope 2 emissions, which arise from electricity consumption, totalled 58,418.66 tonnes of CO2e in the same year. It does not disclose any information related to Scope 3 emissions.

The company reports livestock emissions of 0.03 CO2e tons for 2021 as part of its Scope 1 emissions, calculated based on 173 head of cattle from the agro-industrial unit. This disclosure, however, appears to represent a small portion of the potential emissions from animal farming, especially given the company's operations in the meat and dairy industries. Detailed information on emissions such as methane from livestock is not provided, suggesting that the company's disclosure might not fully cover all emissions related to animal farming.

The company has not responded to CDP Climate Change 2022.

The company discloses that CO2e emissions per ton sold in 2021 were 0.34 tons but provides no disclosure for previous years. Hence, performance tracing is not possible

The company has not explicitly stated whether it has completed a climate-related scenario analysis. While it has identified several environmental risks and reports that it is taking steps to mitigate them, there's no specific mention of a formalised scenario analysis related to climate change.

The company does mention the risk of feed availability and price volatility. It discusses the dangers of droughts and floods and their potential impact on feed ingredients' availability and price volatility. It also indicates that it manages the risk of price fluctuations through strategic purchasing practices. While the specific mitigation or adaptation measures are not explicitly mentioned, the discussion of the projected impact of physical threats and the acknowledgement of the need for risk management suggests that the company addresses these issues to some extent.

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

The company does not disclose the composition of its animal feed, nor does it disclose information regarding where it sources soy from or how it manages deforestation risks linked to soy.

The company does not disclose a deforestation/conversion-free target relating to soy. Further, it does not refer to deforestation throughout its Sustainability Report or on its Environmental Commitment webpage.

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

The company does not disclose information on cattle-related deforestation risk or the areas which cattle are sourced from.

The company does not report having a deforestation/conversion free target for cattle.

The company does not disclose the proportion of cattle sourced which complies with its commitment. It does not state that progress against its commitment undergoes a third party audit, nor did it respond to the CDP Forest Questionnaire in 2022.

The company does not disclose any information on how it engages soy suppliers on deforestation and does not provide support to soy producers to encourage deforestation free production or improve traceability.

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 discloses that it has begun to map its impacts on biodiversity. It also states that it aims to identify the ESG risks and opportunities of suppliers, but provides no further disclosure.

The company does not disclose information on how it engages cattle suppliers on deforestation risks. However, it does disclose that it has participated in a reforestation programme in the municipality of Chihuahua.

The company does not disclose how it monitors compliance with its commitment or the actions taken in cases on non-compliance. Further, it does not disclose the level of traceability it has in its cattle supply chain.

The company does not disclose information regarding innovative & sustainable farming practices implemented to improve biodiversity and soil health.

The company acknowledges the scarcity of water as a serious risk. It also discloses that it has put in place several initiatives that will enable it to reduce water consumption. This includes its Wastewater Treatment Plant (WWTP) in the Chihuahua Plant, which treats effluents to be used in irrigation, therefore saving water. The company does not disclose its water consumption.

The company has not set a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

The company discloses its total water withdrawals in the last reporting year. This data is disaggregated by sources such as groundwater and third-party water.

The company does not disclose information relating to 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 discusses water scarcity as a risk and states that the scarcity or lack of water could adversely and significantly affect the company's activities and operating results. However, it does not discuss water use or scarcity in the context of animal farming.

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

The company states that it has no pending fines or other economic sanctions that materially affect its business. It does not disclose that it has identified processing facilities that operate in locations with high and medium water stress from a quality perspective.

The company discloses its wastewater discharge in the last reporting year.

The company does not disclose the quality of water discharged.

The company does not disclose information relating to nutrient management in feed farming.

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 discusses the management of hazardous waste is undertaken by hiring specialised companies. The company lists oil and filters as hazardous waste but does not reference manure in its reporting.

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 does not discuss antibiotics or any initiatives to decrease disease incidence.

The company does not disclose the quantity of antibiotics used.

The company lacks a statement supporting the Five Freedoms and does not commit to employee training on animal welfare issues. Additionally, it has not outlined any actions for policy breaches nor shown leadership through research and development in animal welfare.

The company does not commit to avoiding close confinement, long-distance transportation, or providing an enriched environment for animals. It also lacks a stated commitment to excluding breeds with traits that risk anatomical or metabolic disorders.

The company does not disclose certification by a farm assurance programme.

The company does not disclose information on its progress in animal welfare.

The company does not explicitly address key welfare risks in beef, dairy, pork, poultry, or laying hen production.

The company recognises the importance of respecting human rights and expects all its employees and collaborators to act accordingly. However, it does not discuss adhering to internationally agreed standards on human rights.

The company does not discuss how it monitors, assesses and mitigates actual and potential human rights risks in its own operations or supply chain.

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 harassment, discrimination, forced labour and child labour and expects its suppliers to make these commitments. However, the company does not explicitly mention the promotion of fair wages or audits covering these policy areas.

The company has various confidential reporting channels accessible by employees and external stakeholders, available online, by email and telephone. It also mentions that its mechanisms are anonymous. However, it must disclose whether they were designed in consultation with stakeholders. The company announces that it received 391 complaints via its whistleblowing channels in 2021 but does not break down the complaints into categories.

The company discusses the importance of preventing and mitigating workplace health and safety risks for its workforce but does not disclose a health and safety certification.

The company discloses it experienced 330 internal accidents during the reporting year, falling from 333 in the year prior. It also reports zero internal fatalities for the reporting year. However, injury and fatality figures only cover its Chihuahua and La Piedad plants, meaning neither its other processing plants nor distribution centres are covered. Therefore, the geographic scope of injury reporting is limited. In addition, the group only reports turnover rates at the corporate level.

The company commits in writing to respect its employees' right to associate freely. It discloses that 15% of its workforce in Mexico is covered by collective bargaining agreements or represented by the country's leading trade unions for the meat industry. The company also expects its suppliers to respect their employees' freedom of association and collective bargaining rights.

The company mentions that approximately 15% of its employees in Mexico are covered under collective agreements. The company also discloses that as of December 2022, it had 11,625 full-time employees. However, it does not disclose if it employs workers on other contract types, such as part-time or subcontracted workers.

The company discloses that its four production complexes in Mexico currently have ISO and Federal Inspection Type (TIF) certifications. These facilities also have USDA certification for export to the US, and the Chihuahua Plant is additionally certified by MAFF for export to Japan. However, none of these certifications are GFSI-recognised. In 2021, it disclosed that it obtained the SQF certification for the Cutting, Value-Added and Sausage processes at the Chihuahua plant. However, it is not clear whether this certification has been renewed for the current reporting period. The company states the importance of suppliers having additional certifications like SQF and BRC certifications. In the case that the supplier does not have these GFSI certifications, it demands that suppliers be audited by NSF and Silliker companies to test the safety of raw materials. However, it does not disclose the percentage of suppliers certified to a GFSI standard.

The company does not report the number or frequency of food safety audits during the reporting year. Further, it does not specify associated corrective action rates. It does not disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company discusses product recall as a material risk to its business through the associated disruption and costs. It mentions how recalls could result in withdrawal from the market which could cause significant losses through the need to destroy inventory and loss of sales. However, it does not mention whether a product recall system is in place. Further, it does not disclose information on recall incidents in the reporting period. No recalls were detected in the media screen.

The company did not disclose whether it had any market bans during the reporting period, and none were detected in the media screen.

The group discloses that senior management takes care of ESG matters but needs to explicitly declare that the board of directors has a formal mandate to oversee ESG issues. The company also discloses that it undertook its first materiality assessment in 2021. It identified the top 10 material topics for each group’s business unit, including operational eco-efficiency, GHG emissions, corporate governance, and biodiversity. The company also identified extreme weather, earthquakes, power supply disruption, contagious diseases, and water shortage as key material risks to its operations in Mexico. The company states that as part of the assessment, it surveys relevant corporate staff but does not explicitly disclose how the board is involved in the assessment process. One board member has expertise in food safety and innovation. However, no board-level sustainability expertise is disclosed.

The company has not disclosed executive monetary remunerations linked with climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues, a comprehensive list of trade association memberships or if it aligns any policy-engagement activities with the goal of restricting global temperature rise to 1.5C.

The company discusses that its innovation priorities lie with creating new packaging technology to minimise environmental impact, align with the legal provisions to reduce the consumption of single-use plastics and offer customers products tailored to their needs. It also mentions that it is in the process of developing a line of vegetarian products in order to innovate in line with changing consumer preferences. However, the company does not disclose how 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 mentions it participates in the plant-based market by offering its "Zero Meat" brand alongside a catalog of multi-protein solutions. It also mentions it offers marinated soy proteins in strips or pieces under the product line "Guisy". However, it seems the company does not sell such products itself, but its international subsidiary produces them for other companies under their private labels. No disclosure is provided indicating the company is investing for future growth.