Inghams Group Ltd

The company mentions that it is in the process of setting a science-based target to reduce Scope 1, 2 and 3 GHG emissions. It is registered as committed on the SBTi database.

The company aims to reduce Scope 1 and 2 absolute GHG emissions by 43% by 2030 against an FY19 baseline. The SBTi has not yet validated the target. It is in the process of setting a 2030 science-based Scope 3 target with 2019 as the base year.

The company has committed to setting a Scope 1 and 2 SBT based on a 1.5-degree pathway. Targets were due to be submitted in June 2023, but no information about this has been published.

The company uses a vertically integrated operational model, sourcing 70% of its feed materials from Australia and reducing soy usage using locally produced protein meals and pulses. It is a member of the Sustainable Agriculture Initiative (SAI), which focuses on the productivity and sustainability of agriculture. It is also developing commitments to reduce GHG emissions by considering renewable energy and alternative protein meals in poultry feed. However, no evidence was found that it is working with suppliers to reduce emissions from agriculture.

The company discloses that it is focused on ensuring the sustainability of its feed ingredients. However, evidence was not found that it engages in innovative projects to reduce or mitigate emissions from feed farming.

The company mentions that New Zealand's Waitoa Free Range Chicken has achieved the first net carbon zero certified chicken product, focusing on reducing GHG emissions through projects and purchasing verified carbon credits for unavoidable emissions.

The company discloses its absolute GHG emissions for Scope 1 and 2 together. In FY2022, absolute Scope 1 and 2 emissions reached 216,081T Kg of Co2e. The previous reporting period included emissions associated with landfill waste generation in Scope 1 and 2, which are now included in Scope 3. It does not report Scope 3 emissions.

The company does not disclose any information on GHG emissions from animal farming. The company does not disclose any information on GHG emissions from feed production. The company does not disclose any information on GHG emissions from land use change.

The company did not respond to the CDP Climate Questionnaire in 2022. The company's external auditor is KPMG. However, it audits financial data only.

The company reports the absolute Scope 1 and 2 emissions, which were 216,081 in FY22 and 219,545 in FY21, respectively. This represents a decrease of approximately 1.57%. Additionally, it notes that compared to FY21, absolute Scope 1 and 2 emissions decreased by 1.6%. It stopped including emissions from landfill in its Scope 2 calculations between reporting periods. Differences in reported figures can be attributed to this.

The company discloses that it conducted its first climate scenario analysis in 2021. In the current reporting year, it conducted several workshops to determine the main physical risks, transition risks, and opportunities it currently faces now and in the future. It lists the potential impacts based on a 2-degree scenario or lower.

The company recognises climate change and feed input costs as a business risk. It mentions that if the feed ingredients supply is reduced after a prolonged drought, higher feed prices may arise from lower production levels, resulting in higher input costs for the company. It sources grains from different suppliers across regions to avoid such risks. It also mentions that grain prices are partially managed through cost pass-through arrangements where available. The company recognises heat stress on animals as a climate risk. However, it does not discuss mitigation plans. It recognises that energy is a significant input for its operations, exposing it to energy pricing fluctuations. It also recognises that the cost of changing to low emissions technologies presents a current barrier to action. It expects transition risks to happen sooner in New Zealand operations because of the country's Zero Carbon Act. It will install onsite renewables to stabilise against energy pricing volatility as a mitigation response. It recognises the carbon pricing risk and identifies generating electricity on-site as an opportunity.

The company discloses that it has identified enterprise-level material climate risks and opportunities, which will be explored and integrated into the enterprise risk management framework, the strategic planning cycle and forward-year CAPEX budgets. However, no evidence was found that it discloses its commitment to aligning capital expenditures with GHG targets.

The company mentions that it manufactures feed for its own operations as well as for poultry and pig industries. It is working with research groups to reduce the dependence on soy in animal feed. However, it still represents more than 2% of the company's procurement spend.

In its Annual Report 2021, the company states that it is committed to sourcing soy that does not contribute to deforestation. It mentions that it will set goals related to the committment in 2023. However, no commitment relating to sustainable soy procurement was found in the current reporting period.

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

The company procures soy from Argentina. However, it does not mention deforestation in the supplier selection process.

The company states that it sources its soy from Argentina, but it is unclear what % of soy this represents.

The company mentions that it is working with different research groups on an alternative protein inclusion strategy to reduce reliance on soy-based products.

The company states that to manage its climate-related risks, site-specific Business Continuity Plans (BCP) have been developed to respond to climate-related events and have been activated at specific Inghams sites due to the recent extreme rainfall and flooding events impacting Australia. Further, it discloses that a "deep dive" into risks and mitigation measures has been completed for potential water scarcity issues across Australia and New Zealand. However, no evidence was found that the company has conducted a risk assessment for its processing facilities nor that it only operates in areas of low-water stress. The company has a Risk and Sustainability Committee that reviews the company's risk management framework and key risks, including risks associated with water. The company is a founding member of Water Stewardship Australia, which is a member-based entity applying the framework outlined by the International Water Stewardship Standard in Australia and Asia-Pacific. Ingham states that four sites are certified by the Alliance for Water Stewardship (AWS) Global Standard. Further, it discloses its Water reduction project at Tahmoor Turkey Primary Processing. Water intensity was reduced by 22% compared to the prior year, and total water usage was reduced by 16%. The company has reduced the total waste volume discharged to the municipal treatment facility by 40%. The company also disclosed the water intensity of its products but not the total water consumption.

The company has an intensity-based target. The target is to reduce the water intensity related to the processing of its products by 20% by 2030 against an FY19 baseline.

The company does not report water withdrawals/consumption by source or by water stress level. It does not disclose water related CAPEX or OPEX and has did not respond to the CPD Water Questionnaire.

Inghams produces stock feed for internal poultry raising and external poultry and pig industries. The company mentions that it participates in the Sustainable Agriculture Initiative (SAI) to help protect and improve the environmental, social and economic conditions of farming and the health and welfare of animals. The company is also working on an alternative protein meal strategy to ensure that the feed is sustainable and to reduce emissions. However, it does not mention water scarcity in feed supply chains.

The company states that it is investigating alternative local sources of feed to reduce reliance on imported soy. However, this does not seem to have the goal of improved water usage in the feed supply chain.

The company does not disclose the proportion of animal protein commodities produced and/or sourced in water-stressed areas. It is a member of the Alliance for Water Stewardship (AWS). Through this partnership, Inghams states that it supports the goals of improved water governance and sustainable water balance. However, the company does not disclose information on managing water scarcity risks in animal farming through this partnership. It states that is has developed Business Continuity Plans (BCP) to respond to climate-related events. Inghams states that two of these plans were activated due to extreme rainfall and flooding events. However, it is unclear what mitigatory steps the company is supporting with regard to water use in animal farming.

The company is a member of the Alliance for Water Stewardship (AWS). Through this partnership, the company states it is committed to proactively managing its water catchments, water usage and treatment of wastewater. However, it is unclear if this partnership inputs into the water management of animal farming operations.

The company mentioned in FY21 that it received a formal warning from the respective environmental regulators in New South Wales and New Zealand following raw wastewater spill incidents at the Tahmoor and Te Aroha sites. However, no relevant disclosure was found in the current reporting year. It states that it is committed to good water quality. However, it does not disclose a formal water quality target or target for specific pollutants.

The company does not disclose the quality or volume of wastewater discharge. No evidence was found that wastewater related data has been audited, and the company did not respond to the CDP water questionnaire in 2022.

The company has not improved the wastewater quality at aggregate level compared to the previous reporting period or reduced the volume of wastewater discharged.

The company does not disclose specific information related 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 does not disclose information related to manure management in animal farming.

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 maintains an antibiotic stewardship policy prohibiting the use of medically important antibiotics for growth promotion or routine disease prevention, relying instead on preventative health measures such as vaccination and stringent biosecurity protocols. It commits to using antibiotics solely for treating specific diseases, as prescribed by veterinarians, and is investigating antibiotic alternatives. However, the company has not addressed routine mutilation.

The company does not disclose its usage of antibiotics.

The company commits to the Five Freedoms and has an animal welfare policy in place for its operations in Australia and New Zealand. It ensures that all employees and contractors undergo mandatory animal welfare training. Furthermore, the company has established a whistleblowing hotline and a formalised reporting system to address animal welfare issues. It is also actively involved in research initiatives aimed at enhancing animal welfare. However, the company falls short in disclosing specific actions to be taken in the event of reported animal welfare breaches.

The company commits to avoiding close confinement for poultry and ensures space for natural behaviours. It claims to refrain from routine physical alterations, but exceptions for beak conditioning and toenail trimming contradict this. The firm aims to limit travel durations to eight hours where feasible and commits to humane slaughter techniques. The company holds RSPCA and FREPA certifications, attesting to enriched environments that meet birds' physical and behavioural needs, including access to perches. However, the implementation of perch access across all operations remains unclear.

The company commits to ensuring that all products supplied are accredited by either the Royal Society for the Prevention of Cruelty to Animals (RSPCA) Approved Farming Scheme or Free Range Egg and Poultry Australia (FREPA). It also discloses that 66% of its operational sites are RSPCA certified. The company commits to having all its products accredited either by the Royal Society for the Prevention of Cruelty to Animals (RSPCA) or the Free Range Egg and Poultry Association (FREPA).

The company has established Key Animal Welfare Indicators based on AssureWel and Bristol University standards, focusing on 15 outcome-based measures for bird comfort. These are reviewed quarterly by its internal Animal Welfare Council. However, it does not disclose specific details or progress related to these indicators.

The company holds certifications such as the Royal Society for the Prevention of Cruelty to Animals (RSPCA) animal welfare standard for meat chickens and the Free Range Egg and Poultry Australia standards, focusing on suitable and stress-free environments for birds. It commits to investing in Controlled Atmosphere Stunning (CAS) as a central welfare technique. However, CAS has yet to be universally implemented. Stocking density exceeds 30kg/m² in all New Zealand operations and 78% of Australian operations. The company's commitment to providing access to perches is predominantly linked to free-range farming.

The company commits in writing to identifying, monitoring and mitigating human rights risks in its business and supply chain. However, the company does not mention adhering to internationally recognised human rights standards.

The company discloses that it assesses the risks of modern slavery in its supply chain based on a heat map that considers geographical and sector risks. Additionally, it conducts supplier audits on modern slavery for suppliers in labour hire, road transport, and cleaning services. When it identifies risks, it works with suppliers to rectify and improve their processes. However, the company does not disclose details of a human rights due diligence or monitoring process for its operations. That said, the company does describe multiple employee training schemes to promote its Whistleblower and Bullying, Harassment and Discrimination Prevention Policies. However, it does not sufficiently discuss detailed mitigation and remediation measures for its operations and supply chain.

The company found no modern slavery risks in its supplier audits. However, it does not disclose whether it found other human rights risks through its supplier due diligence. Furthermore, no extensive human rights due diligence process is undertaken to identify risks in its own operations.

The company commits in writing to prohibit discrimination, child labour, forced labour and harassment in its operations and suppliers. However, the company does not commit to promoting fair wages or providing sick pay to all its employees.

The company conducts supplier audits for modern slavery but does not discuss auditing other human rights policies. The company discloses that it has anonymous mechanisms for workers and suppliers to report grievances. However, it does not disclose whether mechanisms were designed in consultation with stakeholders. The company says a 5% increase in reporting during the reporting period but does not disclose the number or type of grievances it received.

The company commits in writing to maintain a healthy and safe working environment for its employees. However, the company does not mention a health and safety certification.

The company's lost-time injury frequency rate (LTIFR) and total recordable injury frequency rate (TRIFR) reported per million hours worked in 2022 were 2.8 and 5.1, respectively. The company's LTIFR and TFIFR in 2021 were 2.9 and 6.1, respectively. Therefore, the company's injury record has improved since the last reporting period. The company disclosed it had a fatality in the previous reporting year but does not disclose fatality data for the current reporting year.

The company's supplier code of conduct includes respecting employees' right to freedom of association and collective bargaining. However, the company does not commit to respecting freedom of association and collective bargaining in its operations or provide a unionisation rate.

The company discloses that its collectively negotiated agreements cover 86% of its people in operations across Australia and New Zealand, with 93% coverage in Australia. The company does not discuss the distribution of employees across contract types.

The company reports that all its sites in Australia and New Zealand have achieved either an A or AA-grade BRC certification, a GFSI-recognised standard. Further, it states it ensures suitable food safety and quality performance by implementing and certifying effective quality management systems compliant with GFSI. These include Ingham's Food Safety and Quality Management System and its Minimum Standard Procedures in all operations. It also ensures that suppliers and contractors embrace the same food safety and quality commitments and monitor the materials and services they supply through audits and inspections. However, the company does not explicitly disclose whether suppliers are expected to have GFSI certification, nor the portion of those that are.

The company discloses that it achieves, on average, an 'A' rating across its business against the BRC annual audits. As part of its Product Pride Program, the company reports a commitment to achieve a greater than 90% compliance target. The programme provides a framework to deliver world-class food safety and quality, as GFSI defines. In FY2022, the company disclosed that it achieved this target and reduced "customer complaints per million kg" by 18% against FY21. However, it does not report a corrective action rate and is encouraged to do so. Further, it does not disclose whether it is developing a consumer-facing technology for food safety.

The company mentions that food safety and disease outbreak a significant risk to the business. To mitigate this risk, it has a product recall system in place. Details of the system are not disclosed, nor does it reveal the number of recall incidents in the reporting period. However, no recalls were detected in the media screening.

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

The board oversees economic, health, safety, quality, environmental, social, sustainability, and governance risks. This committee also handles the company's sustainability strategy and its implementation plans. In addition, the company has conducted a materiality assessment and disclosed the material business risks that it faces. The board and its risk and sustainability committee are responsible for identifying and overseeing material and emerging risks. The company also provides a Skills/Experience matrix, which lists the range of skills of existing directors. This matrix suggests that multiple board members have innovation and new technology expertise. However, no board-level expertise in sustainability and food safety is mentioned.

The company links executive performance payments to financial targets and ESG metrics relating to food safety and employee safety. These ESG metrics can affect short-term monetary incentives by 20%. However, it has yet to disclose engaging with civil or trade associations on ESG issues, a comprehensive list of trade union memberships or if it aligns any policy-engagement activities to restrict global temperature rise to 1.5C.

The company does not disclose a strategic approach to sustainability innovation or state whether it benchmarks itself against peers in sustainability and innovation.

The company has recognised plant-based portfolio diversification as an opportunity to mitigate climate impact due to its climate-related scenario analysis. It discloses that the option is ongoing but will be explored by 2030. It has not yet made a timebound target to diversify protein sources nor announced specific sales/revenue targets.

In New Zealand, the company offers plant-based products through its bran"Let's Eat" brandcluding burgers, nuggets and tenders. It also provides plant-based nuggets in Australia. Its 2022 Annual Report mentions an ongoing diversification strategy into new markets whilst providing an increasing array of plant-based and hybrid protein products with low carbon and environmental impacts. However, further details need to be provided on how it is implementing this strategy.