Hormel Foods Corp

HRL:US US4404521001
Key Information
HQ:
United States
Market Cap:
$23.95bn
Primary Market:
North America



Company Information

Company Summary

Hormel operates through the following segments: grocery products, refrigerated foods, Jennie-O Turkey Store, specialty foods, and international & other. Its business is involved in processing, marketing and selling branded and unbranded pork, beef, chicken and turkey products for retail, foodservice and fresh product customers.
Hormel Foods

Revenue

Total revenue:

$11.4bn

Revenue by Geography

Revenue by Protein

Revenue by Product Type

Note: This financial breakdown is based on Annual reports released in 2022, containing, in most cases, FY2021.


Disclosures

CDP ScoresLast Reviewed: 11/10/2023

CDP ClimateCDP ForestsCDP Water
YesYesYes

Science Based Target InitiativeLast Reviewed: 03/10/2023

Target classificationStatusDate
Not availableCommitted2021

Coller FAIRR Protein Producer Index

Analysis Overview

Index-Radar-2023
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

39/100
Medium Risk



Greenhouse Gas Emissions

28/100

Scope 1, 2 & 3 Target
55/100
Type of Target
0/1.25
Strength of Target - Non-SBT
1.5/2
Strength of Target - SBT
1.25/1.75
Source(s): Annual Report 2022, page 4; Greenhouse Gas Emission Webpage; Hormel CDP Climate 2022, page 24

Innovation on GHG Emission Reduction
20/100
Innovation to Reduce Agriculture Emissions
0/1
Feed Farming Innovation
1/2
Animal Farming Innovation
0/2
Source(s): Hormel CDP Climate 2022, page 60, 61; Hormel Foods to Invest in Carbon Sequestration, Air and Water Quality Webpage

Quality of GHG Inventory
49/100
Quality and scope of GHG inventory Completeness
1.43/1.5
Feed & Animal Farming Emissions
0.5/2
Transparency of GHG Inventory
0.5/1.5
Source(s): Global Impact Report 2021, page 51; Hormel CDP Climate 2022, page 4, 5, 40, 41, 42, 43, 45

Emissions Performance
10/100
Overall Emission Performance
0.5/5
Source(s): Global Impact Report 2021, page 29; Hormel CDP Climate 2022, page 39, 40, 41, 42, 43, 45, 46, 47, 50

Climate-related Scenario Analysis
5/100
Climate-related Scenarios Analysis Conducted
0/1
Disclosure of Analysis Results on Material Risks
0.25/3
Disclosure of Financial Material Events & Alignment of CAPEX
0/1
Source(s): Annual Report 2022, page 17, 18, 19, 97; Hormel CDP Climate 2022, page 21



Deforestation & Biodiversity

17/100

Deforestation/Conversion-free Target - Soy for Animal Feed
10/100
Risk Assessment to Identify High-risk Locations
0.25/0.5
Strength of Deforestation Commitment
0/3.25
Transparency - Progress Against Commitment
0.25/1.25
Source(s): Deforestation Webpage; Hormel CDP Climate 2022, page 5; Hormel Food CDP Forest 2022, page 3, 4

Deforestation/Conversion-free Target - Cattle
15/100
Risk Assessment to Identify High-risk Locations
0.25/0.5
Strength of Deforestation Commitment
0.25/3.25
Transparency - Progress Against Commitment
0.25/1.25
Source(s): Hormel Food CDP Forest 2022, page 27, 31, 32

Engagement, Monitoring & Traceability - Soy for Animal Feed
22/100
Supplier Engagement
0.1/1.25
Compliance monitoring & Traceability
0.75/3.25
Feed Innovation
0.25/0.5
Source(s): Hormel Foods continues ESG investment in practices to enhance soil health, water and air quality, and sequester greenhouse gases; Supplier Code of Conduct Webpage

Engagement, Monitoring & Traceability - Cattle
20/100
Supplier Engagement
0.25/1.25
Compliance monitoring & Traceability
0.6/3.5
Feed Innovation
0.13/0.25
Source(s): Hormel Food CDP Forest 2022; Hormel Foods Announces New Regenerative Agriculture Initiatives; Supplier Code of Conduct Webpage; Supply chain webpage; south american beef sourcing



Water Use & Scarcity

46/100

Water Use & Scarcity in Facilities
59/100
Monitoring Water Consumption & Withdrawals
0.55/0.75
Target to Reduce Water Consumption & Withdrawals
0.5/1
Disclosure & Performance of Water Risks in Facilities
1.88/3.25
Source(s): Global Impact Report 2021, page 55, 56; Hormel CDP Water Security Questionnaire 2022.pdf, page 1, 2, 5, 6, 7, 8, 23, 24, 25, 26

Water Use & Scarcity in Feed Farming
20/100
Supplier Engagement in Water Use in Feed Farming
1/2.5
Disclosure of Water Risks in Feed Farming
0/2.5
Source(s): CDP Water 2022; Global Impact Report 2021, page 5, 56; Hormel Foods Sustainable Agriculture Policy 2017, page 1, 2, 3

Water Use & Scarcity in Animal Farming
58/100
Supplier Engagement in Water Use in Animal Farming
2/3
Disclosure of Water Risks in Animal Farming
0.9/2
Source(s): Global Impact Report 2021; Hormel CDP Water Security Questionnaire 2022.pdf, page 7, 8; Hormel Foods Sustainable Agriculture Policy 2017, page 3



Waste & Pollution

31/100

Wastewater at Facilities
42/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
0.85/1.5
Transparency on Water Pollution Risks
0.75/2
Performance on Wastewater Quality & Volume Discharged
0.5/1.5
Source(s): Global Impact Report 2021, page 50, 55, 57; Hormel CDP Water Security Questionnaire 2021; Hormel CDP Water Security Questionnaire 2022.pdf, page 1, 4, 5, 6, 14, 15, 16, 17, 18, 27

Nutrient Management in Feed Farming
40/100
Supplier Engagement in Nutrient Pollution Risks
1.4/4
Innovation to Improve Nutrient Management in Feed Farming
0.6/1
Source(s): CDP Water 2022; Hormel Foods Sustainable Agriculture Policy 2017, page 1, 3; Hormel Foods to Invest in Carbon Sequestration, Air and Water Quality; Hormel Foods to Invest in Carbon Sequestration, Air and Water Quality Webpage; Lead sponsor Hormel Foods joined by Target, MBOLD and The Nature Conservancy to advance the state’s latest regenerative agriculture project

Manure Management in Animal Farming
12/100
Disclosure of Pollution Risks from Manure
0.25/1.25
Supplier Engagement in Manure Management
0.34/1.5
Innovation to Improve Nutrient Management in Animal Farming
0/2.25
Source(s): CDP Water Questionnaire 2022; Hormel CDP Water Security Questionnaire 2022.pdf, page 15, 16; Hormel Foods Sustainable Agriculture Policy, page 3; Hormel Foods Sustainable Agriculture Policy 2017, page 3



Antibiotics

54/100

Policy on Antibiotics Use
50/100
Policy on Antibiotics Use
2.5/5
Source(s): Antibiotic Stewardship: Antibiotic Alternatives, page 1, 2; Global Impact Report 2021, page 45, 46; Raising Our Animals Webpage

Disclosure of Quantity of Antibiotics Used
57/100
Disclosure of Quantity of Antibiotics Used
2.85/5
Source(s):



Animal Welfare

45/100

Animal Welfare Policy
57/100
Welfare Policy
1.75/2
Key Welfare Issues
1.1/3
Source(s): Animal Care Chickens Webpage; Animal Care Hogs Webpage; Broiler Chicken Commitment 2020, page 1, 2; Code of Ethical Business Conduct 2021, page 8; Global Impact Report 2021, page 43, 44; Raising Our Animals Webpage; Supplier Code of Conduct Webpage

Assurance & Certification
52/100
Auditing & Assurance by an Animal Welfare Organisation
2.6/4
Public Reporting on Welfare
0/1
Source(s): Broiler Chicken Commitment 2020, page 1; Raising Our Animals Webpage

Performance on Key Material Risks
25/100
Performance on Key Material Welfare Risks by Protein
1.23/5
Source(s): Animal Care Chickens Webpage; Animal Care Hogs Webpage; Broiler Chicken Commitment 2020



Working Conditions

54/100

Human Rights
40/100
Strength of Policy
1/1
Due Diligence Process
1/3
Evidence of Remediation
0/1
Source(s): Global Impact Report 2021, page 70; Human Rights Statement Webpage

Fair Working Conditions
72/100
Policy for Direct Operations
2.1/3
Monitoring & Discosure
1.5/2
Source(s): Code of Ethical Business Conduct 2021, page 10, 30, 33; Code-of-Ethical-Business-Conduct.pdf, page 5; Human Rights Statement Webpage; Supplier Code of Conduct Webpage

Safety & Turnover Data
45/100
Committee representation of workers
0.49/2
Disclosure of safety and turnover data
1.75/3
Source(s): Annual Report 2022, page 4; Code of Ethical Business Conduct 2021, page 6; Global Impact Report 2021, page 65, 66; People Safety Webpage

Freedom of Association
60/100
Strength of Policies
1.5/3
Disclosure of Collective Bargaining Metrics
1.5/2
Source(s): About our team; Annual Report 2022, page 4, 8; Global Impact Report 2021, page 63; Supplier Code of Conduct Webpage



Food Safety

30/100

Food Safety System
30/100
Certifications
1.5/3.5
Performance
0/1.5
Source(s): About Webpage; Food Safety and Quality Webpage; Global Impact Report 2021, page 41, 42

Product Recalls & Market Bans
30/100
Product Recall Systems
1/3
Performance
0.5/2
Source(s): Limited Skippy Foods products Recall Webpage



Sustainability Governance

45/100

Assessment of a Company's Sustainability Governance
45/100
Board Sustainability
1.13/2
Incentives & Policy Engagement
0.85/2.5
Innovation & Benchmarking
0.25/0.5
Source(s): 2022 Proxy Statement, page 4, 5; CDP Climate 2022, page 62; Ethics, Governance and Risk Webpage; Global Impact Report 2021, page 2, 5, 10, 11, 12, 32, 40; Hormel CDP Climate 2022, page 8



Alternative Proteins

55/100

Diversification of Products to Alternative Protein Sources
55/100
Existing product portfolio
0.25/2.5
Investing for future growth
2.5/2.5
Source(s): Global Impact Report 2021, page 36; Happy Little Plants Products Webpage; Hormel Alt Protein partnership; Press Release Happy little plants Webpage

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Waste & Pollution Engagement

Analysis Overview

Waste-Pollution-Radar
Risk Assessment Value Chain Coverage Risk Mitigation Circularity Company Engagement

Analysis Breakdown




Risk Assessment

Medium
Coverage of water quality risk assessment
Transparency and disclosure of water quality indicators
Recognition of nutrient pollution risk on biodiversity



Value Chain Coverage

Poor
Inclusion of upstream feed and livestock suppliers in risk assessment
Downstream use of manure by animal feed suppliers
Acknowledgment of regulatory risks
Transparency on non-compliance from suppliers



Risk Mitigation

Poor
Biogas generation and organic fertilisers from animal waste
Target-setting for water quality
Support to third-party suppliers



Circularity

Poor
Pilot projects around nutrient circularity
Disclosure of investment in circular solutions
Targets to increase share of manure under circular initiatives



Company Engagement

Medium
Level of company engagement with the coalition

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