Hormel Foods Corp
HRL:US US4404521001
Key Information
HQ:
United States
Market Cap:
$23.95bn
Primary Market:
North America
Waste & Pollution Engagement
Analysis Overview
Risk Assessment Value Chain Coverage Risk Mitigation Circularity Company Engagement
Analysis Breakdown
Risk Assessment
Medium
Coverage of water quality risk assessment
The company completed a water risk assessment, including both water quality and water scarcity issues, for its direct operations in 2018, which was refreshed in 2020. The company mentions using the WRI Aqueduct tool and an internal risk management process.
The company discloses it does not consider itself exposed to water risks in its direct operations with the potential to have a substantive financial or strategic impact. However, the company mentions that risks exist.
The company does not disclose whether it operates in regions considered high or medium risk from a water quality perspective. The company also mentions that a third-party consultant analysed the areas where pork farms were located, which appeared as "high risk" according to the WRI Aqueduct, and the risk was determined to be lower than shown in the tool.
Transparency and disclosure of water quality indicators
The company mentions that it measures discharged water quality parameters. However, it does not disclose the results. In the engagement call with FAIRR, the company noted it is trying to identify which parameter is the most adequate for measuring water quality.
The company discloses in its CDP Water 2022 report that it was subjected to 5 cases of fines, enforcement orders or other penalties related to water regulatory violations. The fines reported were related to discharge events above permitted levels.
Recognition of nutrient pollution risk on biodiversity
The company does not disclose information.
Value Chain Coverage
Poor
Inclusion of upstream feed and livestock suppliers in risk assessment
The company discloses it has included integrated and contracted Turkey farms in its water risk assessment, as they are all located in the same regions included in the company´s assessment. However, the company only has its own pork farms in the assessment. It aims to include pork suppliers in its assessment in the next two years.
As part of its AgWater Challenge commitment, the company committed to engaging with its largest suppliers, including feed grain growers, to meet best environmental practices for reducing water pollution risks, including animal manure storage, transport and application. While the company has created a sustainable agriculture policy including feed suppliers, it does not currently include feed as part of its assessment to identify its exposure to areas with water quality risks. The company mentions in its CDP report that it is working to improve data exchange for sourced maize and soy, focusing on water risks.
Downstream use of manure by animal feed suppliers
The company does not disclose information in its publicly available reports. In the dialogue with FAIRR, the company mentioned that there is a good overlap between manure production and feed growers in the turkey-growing regions.
Acknowledgment of regulatory risks
The company does not disclose information.
Transparency on non-compliance from suppliers
The company does not disclose information.
Risk Mitigation
Poor
Biogas generation and organic fertilisers from animal waste
The company does not disclose information in its publicly-available reports. In the engagement call with FAIRR, the company mentioned it had allocated resources to start working on natural gas recovery and conversion projects.
Target-setting for water quality
The company has a target to reduce organic waste discharge from its facilities by 10% by 2030. However, it does not disclose specific actions linked to that goal yet. The company mentions that it is evaluating wastewater-loading reduction and treatment-improvement opportunities and will provide additional updates in future reports.
The company does not disclose information about having site-specific plans and targets for each of its owned locations identified as operating in areas of high water quality risk.
Support to third-party suppliers
The company has a sustainable agricultural policy and expects its suppliers to adopt soil and nutrient management plans that address soil quality monitoring. The company mentions that manure from company-owned live production operations is managed to ensure protection from loss to the environment, including land application as a nutrient substitute overseen by licensed agronomists. However, it´s not clear to what extent the company supports farmers on this.
Circularity
Poor
Pilot projects around nutrient circularity
The company does not disclose information.
Disclosure of investment in circular solutions
The company does not disclose information.
Targets to increase share of manure under circular initiatives
The company does not disclose information.
Company Engagement
Medium
Level of company engagement with the coalition
The company did not respond initially to the investor letter. Investors' input was needed for the company to engage and provide a response. It did not respond to the engagement questions. The company met with investors outside the engagement period. The company acknowledged FAIRR´s assessment, but it did not provide feedback.
Workstream Information
2023 level
Poor
Index Waste & Pollution Score:
28/100
Assessed Proteins:
Beef, Poultry and eggs, Pork
Last Updated:
28 June 2023
2023/24 Resources
Phase 1 | Key Findings Report Waste & Pollution Engagement