LDC SA

The company does not have a science-based emission reduction target.

The company has a target to reduce its energy consumption by 10% by 2025 compared to 2018. However, it does not disclose its targets to reduce GHG emissions from Scope 1 and 2. It is committed to a more comprehensive measurement of greenhouse gas emissions (GHG) across all Scopes 1, 2 and 3 and commissioned a specialised firm to carry out this study. However, it has not set a target yet.

The company discloses that the majority of its GHG emissions fall within Scope 3 (77%). Moreover, the emissions are linked to agricultural upstream activities, especially raw materials for poultry feed. It discusses optimising the use of resources to reduce these emissions. It mentions that it supports its partner breeders in different measures to reduce energy consumption and GHG emissions, such as developing farms with low energy consumption and improved waste management.

The company states that the upstream division is committed to the DURALIM approach, the first collaborative platform for sustainable feed for farmed animals. It aims to source feed from 100% deforestation-free areas. Moreover, it prioritises low environmental footprint feed by selecting local suppliers and encouraging good agricultural practices and crop selection. However, it does not provide sufficient detail on its emission-reducing innovations.

The company mentions supporting its partner breeders in different measures to reduce energy consumption and GHG emissions. However, it does not provide further information on innovative practices.

The company reports that its Scope 1 and 2 GHG emissions from the energy consumption of production tools in 2022 were approximately 195,257 tCO2. Since it discloses emissions from energy consumption only, the disclosed figure is considered as Scope 2 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 does not disclose to CDP climate change questionnaire. The company does not disclose the data on GHG inventory is audited by a third party.

The company reports an increase in its emissions from 195,000 tCO2 in FY2021 to 195,257 tCO2 in FY2022. Also, it discloses that in FY2022, the emissions intensity increased by 3.6% compared to FY2021 (calculated using the ratio of kg of CO2/tonne produced). It does not report Scope 3 emissions, and the GHG inventory is incomplete.

The company states that through its current risk analysis and assessments, it has not identified any significant financial risk in the short term linked to the effects of climate change. No evidence was found that it discloses information on climate-related scenario analysis.

The company references the recent increase in feed prices but attributes this to the high demand for cereals in China and global geopolitical issues. No reference is made to the projected impact of physical risks.

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

The company mentions using wheat, corn and soy in the animal feed. It also states that it is reducing the proportion of soy used in its feed. The company states that, on average, soya represents 15% of feed. In 2022, 49% of the company's sourced protein for feed (which represents 27% of total feed ingredients) came from French soy or soy alternatives. Soy is therefore expected to represent more than 2% of total feed ingredients. The company sources soy from Brazil, which is a high-risk area. Therefore, 100% of soy is not sourced from areas with no risk of deforestation.

The company is committed to achieving a 100% deforestation and conversion-free soy supply chain by 2025. Further, it discloses it will not use soybeans sourced from areas deforested after 2020, particularly in the Cerrado in Brazil.

The company discloses that its feed production operations are in France. It discloses that is does not use soybeans sourced from newly deforested plots after 2020, particularly in the Cerrado in Brazil. Therefore, commitment applies to all sourcing regions at risk of deforestation.

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

The company mentions that it is working with its suppliers on the topic of deforestation. In 2020, the Group encouraged its suppliers to provide detailed elements of traceability of the imported soybeans and not to resort to soybeans that would come from newly deforested land in particular in the Cerrado in Brazil. However, no evidence is found that the company provides support to soy producers to encourage deforestation-free production or improve traceability.

The company discloses that it ensures compliance by soy suppliers, by being part of a joint strategy launched in France to achieve deforestation-free soy supply chains. It mentions partners that have been subject to one or more reports of non-compliance, will be subject to temporary or permanent exclusion. LDC discloses that 49% of the plant proteins used in poultry feed in 2022 were made from French and European soya or alternatives to soya. The remaining 51% of protein used in the feed is therefore expected to be imported.

The company prioritises locally sourced grains and proteins for feed. Due to the location of the company (Europe), locally sourced grains and proteins will have a lower deforestation risk. Further, the company discloses that it is looking to promote biodiversity at the group level and gives examples of a range of projects it is undertaking on poultry farms.

The company discusses several actions it is taking in order to manage its water consumption more efficiently. However, it also discloses that in 2022, the water consumption rate (L / kg produced) increased by 3.1% compared to 2021.

The company discloses it has set a target to reduce the water consumption rate by 5% by 2025 compared to 2018 levels. So far the water consumption rate (L/kg) has been reduced by 9% between 2018 and 2022. However, it does not explicitly mention a time-bound target to reduce water withdrawals.

The company states that it sources water from public distribution networks and private boreholes to be used for the slaughtering, cutting and manufacturing processes of its products. However, it does not give quantitative information regarding water consumption/withdrawal by source. It specifies that total investments with an environmental component (seeking to prevent and reduce environmental impact) in 2022 amounted to €12.002 million, excluding tax. It mentions that these investments have been used in various areas like improvement of effluent treatment and optimisation of waste management, among other environmental aspects. Approximately 26% of this total amount equating to €3.12 million was invested in water-related projects. The environmental data provided by the company, which includes data on water, has been audited by EY. LDC discloses that in 2022, the overall water consumption (in L / kg produced) within the Group increased by 3% compared to 2021. However, actual quantitative data for water consumption in the reporting period and in the previous year is not disclosed. Further, the amount of water withdrawn is not reported by the company.

The company states that it sources raw materials for poultry feed. However, 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 does not disclose the proportion of animal protein commodities produced and/or sourced in water-stressed areas. It states that conserving water quantity and quality is a priority area for the company. In order to achieve this the company states that it has been optimising processes, using equipment that improves the mechanical efficacy of water, e.g. high-pressure nozzles and training staff in rational water use.

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

The company briefly discusses that it ensures compliance with mandatory declarations. However, no other detail is disclosed by the company regarding incidences of non-compliance with water quality permits, standards and regulations.

The company discloses data on the Chemical Oxygen Demand (COD) of wastewater discharged from its its poultry, processing and catering sites.

The company discloses that it produced biogas using effluents from a slaughter unit and a factory for processed products. LDC reports a 45% decrease in the Chemical Oxygen Demand (COD) (g of COD/kg) for its poultry sites between 2021 and 2022. However, LDC also reports a 22% increase in the COD of water discharged from catering sites between 2021 to 2022. It does not report the volume of waste water discharged.

The company reports that agronomic assessments are conducted to ensure the right level of fertiliser is used for crops to minimise the environmental impact of fertiliser use. The company discloses that it works in close partnership with the farmers involved in fertiliser application by providing them with advice on crop fertilisation. LDC states that it educates suppliers towards more virtuous practices to mitigate environmental risks linked to intensive agriculture, including pollution. However, the company does not provide further details.

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 discloses it works with its partner farmers to build treatment stations to compost manure. The company does not disclose whether all its partner farms participate in this programme.

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 a policy where antibiotics are used exclusively to treat diseases, as prescribed by veterinarians, actively phasing out the use of critically important antibiotics in favour of natural alternatives across all operations. It refrains from using growth factor antibiotics and hormones, focusing instead on implementing biosecurity measures and vaccination programmes, incorporating nutritional supplements such as probiotics and plant extracts into feed, and reducing stocking densities by 10% compared to standard French practices. Further, it is engaged in research to find alternatives to decrease pathogenic flora in farms.

The company does not disclose the quantity of antibiotics used.

The company commits to the Five Freedoms prioritising animal condition, health, and welfare. It has implemented training programmes at multiple operational levels covering farm and production sites, focusing on animal welfare and health preservation. In research and development, the company collaborates with external bodies such as universities to enhance sector practices, including assessment of animal behaviour, breed trials, and investigating antibiotic alternatives.

The company commits to enhanced animal welfare via increased barn space and lower stocking density, and 20% of chickens in its French poultry division are raised with outdoor or sheltered external access. It aims for all partner farms to meet the EU Better Chicken Commitment by 2025. It has a mutilation-free target in place, travel time averages three hours due to proximal slaughter sites, and universal pre-slaughter stunning is employed. Environmental enrichments and trials of slow-growing chicken breeds are in place, with 32% adhering to RSPCA high-welfare protocols. However, its average stocking density of 36.6 kg/m² exceeds EU Better Chicken Commitment guidelines of 30 kg/m², and the status of its mutilation-free target is undisclosed.

The company discloses that 74% of its farms hold certifications, including Label Rouge, Nature Breeders Charter, Appellation d'Origine Contrôlée (AOP), and Organic/Bio. The company discloses that 74% of its farmers are subjected to independent quality checks and hold certifications such as Appellation d'Origine Protégée (AOP), Organic, Label Rouge, Free-range, or Nature. It commits to extending this to 100% of its partner breeders by 2025.

The company discloses metrics such as the percentage of chickens with outdoor access and those housed at densities under 30 kg/m², as well as those raised in enriched environments. However, 2022 updates have not been disclosed.

The company possesses certifications like Nature Breeders Charter, Label Rouge, AOP, and Organic/Bio, stipulating higher animal welfare standards including enhanced environments and welfare-focused breeds. It has also initiated the replacement of waterbath stunning with controlled atmosphere at multiple sites.

The company states that its Ethical Principles align with the Universal Declaration of Human Rights, the international conventions of the International Labour Organization (ILO), the OECD Guidelines for Multinational Enterprises and the commitments proposed within the framework of the UN Global Compact.

The company states that it has set up a “vigilance plan” to identify and prevent serious risks to human rights and fundamental freedoms, health and safety and the environment, resulting from the activities the company oversees and the activities of all its sub-contractors and suppliers. These risks were assessed in terms of severity, potential frequency of occurrence or exposure, and current control within the group. Further, it discloses that it has identified the projects to be carried out to increase compliance by the end of 2023, which include the finalisation of the update of the mapping of human rights and due diligence risks, the formalisation of prevention and mitigation actions and the monitoring of their implementation. However, it does not sufficiently disclose how it assesses and monitors actual and potential human rights risks across its entire operations or if it has implemented any mitigation measures in response to any 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 prohibits discrimination, harassment, forced labour and child labour. However, the company does not commit to paying all its employees a fair wage or state that it undergoes audits covering the selected policies. The company also states it expects suppliers to prohibit child labour, forced labour and discrimination but does not discuss whether it promotes living wages or prohibits harassment within its supply chain.

The company does not mention conducting supply chain audits covering child labour, forced labour and discrimination. The company states that grievance mechanisms are in place within its direct operations but that only in exceptional circumstances can employees make anonymous complaints. It does not discuss having a grievance mechanism open to suppliers or the number of grievances received during the reporting year.

The company commits in writing to preserve the health and safety of its employees. However, it does not disclose if it has any occupational health and safety certification. The company states that its Health and Safety Policy acknowledges the establishment of a Health and Safety steering committee which implements and monitors the priority action plan. However, the company does not disclose the number and/or percentage of facilities with a health and safety committee specifically composed of worker representatives.

The company disclosed the frequency rate of accidents at work as 38.2 in 2022, demonstrating an improvement in accident rates from the figure of 39.7 reported in 2021. The company does not disclose information on workplace fatalities.

The company commits in writing to respect the freedom of association and collective bargaining rights but does not disclose the unionisation rate. The company discloses that its collective agreements with trade unions negotiated during the year covered professional equality, purchasing power bonuses, profit-sharing agreements, quality of life at work, and teleworking, among other topics. However, it does not be clarified what measures the company takes to support its employees' rights to associate with unions freely. The company also states that it promotes the right to freedom of association and collective bargaining in its supply chain.

The company provides a basic statement on the right to collective bargaining but does not disclose the percentage of employees represented by collective bargaining agreements. The company also discloses that 95.8% of its workforce is employed full-time. However, it does not discuss what is included in the other 4.2% or the number of subcontracted employees.

The company reports that 93% of its owned facilities have FSSC 22000, BRC or IFS certifications, which are GFSI-recognised programmes. It has also set an objective of having 95% of its sites certified by 2025. It discloses that food safety is the group's daily concern, and all processing stages involve laboratory analyses, traceability of products and strict supplier selection. However, no evidence was found that it expects its suppliers to have a GFSI certification.

The company discloses that most sites benefit from regular monitoring by the authorities regarding food safety. However, it does not tell the number or frequency of food safety audits or corrective action rates. Throughout the process, it guarantees the traceability of products, from by-products to primary packaging. However, it does not describe any technology it is developing or has developed to provide traceability to the end customer.

The company acknowledges food safety as the group's daily concern and has integrated it into its extra-financial strategy. However, it does not mention the risk of recalls or provide disclosure regarding a recall system. It does not report the number of recall incidents in the reporting period, and none were detected in the media screening.

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

The company has a Corporate Social Responsibility Committee (CSR), whose mission is to assist the supervisory board in monitoring social and environmental responsibility issues. The board relies on the work of this committee for matters relating to the CSR strategy and its implementation. The CSR Committee is comprised of three supervisory board members. In addition, The company has conducted a materiality risk assessment and discloses its methodology and the material issues identified. These include sustainable farming and animal welfare, safety and health at work, attracting and retaining employees, purchasing sustainability criteria, the ethics of business, and food waste, among others. The company does not disclose any board-level expertise in sustainability, food safety or innovation.

There was no evidence that the company has set executive monetary remunerations linked with sustainability performance. The company is engaging with major professional organisations, NGOs and government bodies on issues relating to animal welfare but does not disclose any engagements on other ESG issues. Also, the company states that it engages with several poultry industry groups and associations. However, it does not discuss aligning its policy-engagement strategy to restrict global temperature rise to 1.5°C.

The company benchmarks itself with peers on animal welfare issues using the BBFAW. The company was classed as Tier 4 since 2021 but aims to reach Tier 2 by 2025. However, the company does not disclose a clear strategic approach to sustainability innovation.

The company discloses that it produces and markets several plant-based alternatives to animal protein products as it is committed to developing these activities to meet the needs of customers and consumers. However, it does not disclose a timebound target to diversify protein sources or report sales/revenue linked to alternative protein sources.

The company has a dedicated alternative protein brand, "Le Gaulois Végétal", which has a range of plant-based products mimicking the look and texture of meat. Products are advertised as 100% gourmet using GMO-free and organic beans. The range includes pea steaks, soy burgers, breaded soy and wheat, and soy and wheat croquette with cheese. However, it does not disclose that it is investing for future growth.