Prima Meat Packers Ltd

The company has a target to reduce carbon emissions from fossil fuel combustion in Japan by 24.3% by 2030 from the fiscal 2021 level. However, the target is not validated by the SBTi.

The company discloses a target to reduce emissions from fossil fuel consumption by 24.3%, down from 2021 levels. This target only applies to Japanese operations and does not include emissions from livestock. Hence, the scope is limited to specific geographies.

The company does not discuss 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 mentions new goals and ways to manage increased methane emissions from enteric fermentation. It also states that it is researching methane-reducing feed formula. However, it does not provide any detailed information on these initiatives.

The company discloses aggregate carbon emissions without a breakdown of Scope 1, 2 and 3 categories. In FY21, the carbon emissions were 134,852 tons CO2. It specifies that emissions are calculated for 22 plants. Therefore, the geographic scope is limited to certain geographies.

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 that its total emissions increased by 5.58% between 2020 and 2021, and the GHG inventory of the company is incomplete. Also, it specifies that emissions are calculated for 22 plants.

The company has endorsed the Climate-Related Financial Disclosure reporting framework and states it performs scenario analysis as part of this process.

The company recognise animal feed prices as a climate-related risk. However, it does not provide a mitigation plan for the projected threats. It acknowledges the impact of rising temperatures, which leads to adverse conditions for livestock and poultry and poorer meat quality. No information was found related to any plan to adapt to increased temperature. It mentions the livestock medicine cost as a critical climate risk. It also states that such a risk will increase the potential financial expenditure for the company and will have a short-term impact. However, it does not discuss veterinary costs and plans to mitigate them. It discloses that higher energy-related prices due to climate change would lead to higher expenditures on energy-efficient and renewable energy technologies. It mentions higher tax burdens due to more minor cuts in GHG emissions. However, it does not discuss the risks of a carbon tax on electricity and animal protein.

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

The company only mentions soy is being used in its brand Try Veggie, which produces soy meat products. However, the company doesn't disclose the proportion of soy procured as part of the total feed ingredients. The company does not refer to deforestation within its disclosure.

The company does not disclose having a deforestation/conversion-free target for soy.

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

The company does not report any information on how it engages soy suppliers on deforestation risks. It states that it will ensure that its procurement of raw materials is ecologically sustainable but it is unclear on the steps taken by the company to ensure this, or raw the materials which this applies to.

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 does not discuss innovations and/or practices to move towards sustainable feed sources.

No evidence was found that the company has conducted a water-related risk assessment. Prima Meat discloses its total water consumption by source for the last reporting period. The information is only disclosed for 22 plants.

The company has set a target to reduce water consumption intensity to 14.3 m3/tonne for four plants by 2023. This represents a targeted reduction of 3.4%.

The company discloses its water consumption by source in the last reporting year. Water consumption from both well water and mains water sources increased in the last reporting period.

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 information relating to water scarcity risks in animal farming.

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

The company has not indentified facilities that operate in locations with high and medium water stress from a quality perspective. It has not set a quality or volume target for wastewater, and does not report the number of incidences of non-compliance with water quality permits, standards, and regulations.

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 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 states that it views the potential higher demand for animal manure due to reduced usage of petrochemical fertilisers as an opportunity for the business. However, it does not disclose further information about realising this opportunity.

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 reducing disease incidence by establishing disinfection points at farm entrances and utilising smoke disinfectant on all items brought onto the farm. It also spearheads the Prima Next Project, focusing on improving farm hygiene and decreasing antibiotic use. Furthermore, it offers various organic pork products derived from antibiotic-free pigs raised on GM-free feed.

The company does not disclose the quantity of antibiotics used.

The company commits to a broad approach to animal welfare, including phasing out traditional gestation crates and controlling feed quality. It also addresses disease management, hygiene, and overall living conditions.

The company commits to transitioning away from gestation crates and installing free-access stalls by 2026. However, it continues to use farrowing crates from birth until piglet weaning. It does not discuss enriched environments.

The company does not disclose the presence of third-party auditing, monitoring, or assurance for animal welfare.

The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.

The company commits to eliminating the use of gestation crates. However, it continues to utilise farrowing crates and does not disclose information on routine tail docking, surgical castration, or the provision of suitable environments.

The company commits in writing to respect human rights but does not commit to internationally recognised standards such as the ILO core conventions.

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 discrimination and abuse in its operations. However, it does not explicitly mention whether human rights audits are conducted, it prohibits child labour and forced labour, or it promotes fair wages. Furthermore, the company does not state that it requires suppliers to probit child labour, forced labour, discrimination and abuse or promote fair wages.

The company does not discuss whether it has conducted supplier audits covering human rights or if it has a grievance reporting mechanism open to employees or external stakeholders.

The company is committed to ensuring the health and safety of its employees. However, the company does not mention a health and safety certification or if it has health and safety committees

The company's lost-time accident frequency rate for the reporting period was 1.613. The company states that these figures exclude some group operations but do not specify which ones or what proportion of the overall company these operations represent. Furthermore, the company discloses no injury data for previous years or any fatality data. The company discloses that the turnover rate 2021 was 3.5% but does not provide data disaggregated by seniority level.

The company discloses that 1,128 employees belong to a labour union. However, it must provide an introductory statement on the right to freedom of association and collective bargaining. Moreover, it must disclose whether it expects or requires suppliers to set a policy on freedom of association and collective bargaining.

The company discloses the number of temporary and regular employees for its Processed Foods Division, Meat Business, and others. However, the company does not sufficiently disclose the distribution across contract types such as full-time, part-time, subcontracted or hourly.

The company reports that 14 facilities are FSSC 22000 certified, a GFSI-recognised certification. Further, 15 are ISO 22000 certified. However, the total number of facilities is not disclosed, so the proportion/percentage of total sites certified can not be determined. It reports that it engages with suppliers via an importing company to ensure their commitment to its strict quality standards. Further, it mentions that its Thailand-based suppliers conform to the Japanese Agricultural Standard (JAS). However, the company does not disclose whether suppliers are expected to have GFSI certification, nor the portion of those that do.

The company discloses that to provide food safety, it ensures the safe and secure procurement of raw materials through regular supplier audits. However, it does not mention the frequency or number of audits in the reporting year or the corrective action rate. It describes a traceability system for food safety called the 'Prima Internet Traceability Service', which can be utilised when a customer inquiry is received regarding production history. It will search the system itself and report the results to the customer. Therefore, the technology is not deemed to be consumer-facing.

The company acknowledges food safety as a critical risk to the company. It states that if an incident arises, it notifies the public immediately and takes corrective and preventative action. However, it does not describe how it approaches product recalls in further detail, nor does it confirm that a product recall system is in place. Further, 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 in the reporting period, and none were detected in media screening.

The company has established a sustainability committee, chaired by the CEO, to place sustainability at the core of management. The company conducted its materiality assessment in FY2020, disclosing the same material issues as last year. The problems include securing safe, reliable food, reducing greenhouse gas emissions, reducing the volume of waste output, addressing animal welfare, sustainable procurement of raw materials and recommending health-conscious products. One of the responsibilities of the company's sustainability committee is to address the material issues identified through the materiality assessment. The company discloses the skill matrix of board members. However, this matrix does not include a sustainability, innovation or food safety metric.

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

The company recognises that protein diversification towards alternative sources has emerged as a solution to population growth, causing protein demand to outstrip protein supply. It also acknowledges that people require a healthy balance of protein sources aside from meat, and its brand encourages consumers to try alternative protein products. However, it has not yet set a timebound target to diversify protein sources, nor does it disclose sales/revenue linked to alternative protein sources.

In FY2021, the company launched its plant-based brand, "Try Veggie", which offers soy-based substitutes for meat products. It discloses that developing innovative manufacturing technology is a core approach to product development. As part of this, it mentions it is planning to develop non-soy-based alternatives to meat and is currently researching alternative protein sources.