San Miguel Food and Beverage Inc

The company does not have a science-based emission reduction target or is not in the progress of developing one.

The company is a leading food and beverage company in the Philippines. Its core business involves breeding poultry, hogs, and cattle and processing meat and dairy products. It does not disclose whether it has set targets to reduce GHG emissions from Scope 1 and Scope 2. It states that it facilitates targets in the form of key performance indicators to reduce electricity. Moreover, it mentions qualitative measures to reduce energy consumption in its operations, including replacing fluorescent lighting with LEDs and installing solar panels in some facilities to add to renewable energy consumption. It needs to disclose whether it has set targets to reduce GHG emissions from Scope 3. The company procures raw materials for its feed. However, it does not disclose quantitative information about Scope 3 emissions.

The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.

The company mentions that its poultry processing wastes, such as feathers, offals and blood, are rendered and used as raw materials for feed manufacturing. However, it does not refer to GHG emission reduction.

The company discloses that it implements various measures to make the bottling plants more efficient to reduce energy consumption and lower GHG emissions. It also mentions the installation of solar panels. However, these are not related to reducing emissions from animal farming.

The company discloses its Scope 1 emissions totalled 263,489 tonnes of CO2e, whilst Scope 2 emissions were reported to be 320,953 tonnes of CO2e. However, it is unclear what proportion of these emissions come from the food segment.

The company does not disaggregate any emissions data.

The company declined to respond to the CDP Climate questionnaire.

An external calculation reveals that the company's total emissions, including Scope 1 and Scope 2, increased by 19.2% from 2021 to 2022.

The company does not disclose information on climate-related scenario analysis. It reveals information on its management approach to impacts and risks according to a document prepared by the USAID under the Climate Change Adaptation, Thought Leadership and Assessments on climate risk issues.

The company mentions the improper use of veterinary medicine due to a lack of capacity and information. However, it does not discuss the increasing veterinary and treatment costs. It says that high energy costs result in higher costs to produce its products, reducing margins, which would, in turn, affect its fiscal health and competitive advantage. To manage this risk, it mentions it has made efforts to identify and implement energy-saving initiatives, such as investing in more energy-efficient machinery and renewable energy to decrease its reliance on non-renewable energy.

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

The company has an 'Animal Nutrition and Health' segment where it produces alternative sources of raw materials such as cassava for its animal feed. The company purchases imported and locally sourced raw materials for its feed ingredients, such as soy, wheat, and corn. However, the company does not disclose information on how it manages deforestation risks linked to soy.

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 disclose information on managing deforestation risks linked to cattle.

The company does not report having a deforestation/conversion free target for cattle.

The company does not disclose the proportion of cattle sourced which complies with its commitment. It does not state that progress against its commitment undergoes a third party audit, nor did it respond to the CDP Forest Questionnaire in 2022.

The company procures raw materials for its feed ingredients, such as soy, wheat, and corn. However, the company does not disclose how it engages soy suppliers on deforestation risks.

The company does not disclose how compliance in monitored or what actions are taken if non-compliance occurs. Further, the company does not disclose the level of traceability it has of its soy supply chain.

The company discloses that it has developed local alternative sources of raw materials, such as cassava, as a substitute for corn in its feed supply. The company also states that it uses brewery and flour mill waste as feed ingredients, thereby reducing land-use pressures and deforestation risks in its feed supply.

Deforestation is not referenced in the company's supplier code of conduct. Further, the company does not disclose providing support to cattle producers to encourage deforestation free production or improve traceability.

The company does not disclose how it monitors compliance with its commitment or the actions taken in cases on non-compliance. Further, it does not disclose the level of traceability it has in its cattle supply chain.

The company does not disclose information regarding innovative & sustainable farming practices implemented to improve biodiversity and soil health.

The company discloses the total amount of water consumption in 2022 for the whole organization. The company also has a quantitative water conservation target and implements projects to reduce water consumption and explore water resources to be used other than groundwater.

The company aims to reduce its water use by 50% by 2025 from a 2017 baseline across the entire group. The company does not disclose progress against the target.

The company discloses water withdrawal by source in 2022. It discloses a decrease in the volume of water withdrawn and a decrease in water consumption in 2022

The company does not disclose information relating to water scarcity risks in feed farming.

The company discloses using alternative ingredients to soy and corn. However, the goal of this replacement does not seem to be reducing water scarcity risks.

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 discloses five instances of non-compliance with environmental laws and/or regulations in FY2022. However, it does not disclose details of associated penalties or descriptions of the events. It mentions that the Department of Environment and Natural Resources (DENR) identified one of its production sites as located near a biodiversity conservation area. The facility identified is an alcohol distillery located along the coastline of Guimaras. However, the company has not completed a risk assessment to identify all facilities that might operate in areas with high water stress from a quality perspective.

The company discloses the total volume of water discharged in 2022.

The company states that the DBI distillery has its wastewater treatment plant that produces and harvests biogas, which is then used to reduce its reliance on fossil-derived liquid fuels. However, the company does not disclose converting animal by-products from processing effluents into fertilisers or biogas. San Miguel declares a decrease in the total volume of water discharged in 2022.

The company's animal Nutrition and Health' segment produces animal feed. However, the company does not disclose information relating to nutrient management in feed farming. The company provides a high-level statement that it has systems to ensure the recycling and reuse of waste and wastewater discharges. It also states that it appropriately manages, controls, and treats waste before release into the environment. However, it is unclear whether this applies to 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 biogas is produced from manure in farms to replace heat exchangers and internal combustion. The company does not disclose information about applying the remaining slurry sustainably.

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 acknowledges the risks of antimicrobial resistance and advocates for responsible antibiotic usage to supplement good sanitation and livestock handling. It emphasises the public health and animal welfare implications of antibiotic misuse. However, it lacks a formalised antibiotics policy and does not disclose specific measures to reduce antibiotic needs.

The company does not disclose the quantity of antibiotics used.

The company commits to treating animals humanely and minimising pain and stress. However, it does not disclose providing training on animal welfare.

The company does not state a commitment to engaging and training employees on animal welfare issues.

The company does not disclose whether there is 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 does not address key welfare risks in beef, dairy, pork, or poultry.

The company states that it respects internationally recognised human rights principles. However, it is unclear which human rights principles it is referring to.

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 cases of human rights risk through a due diligence procedure.

The company prohibits child labour, forced labour, discrimination and inhumane treatment in its operation and supply chain. However, it does not mention whether it conducts audits covering these policies or whether it promotes fair wages.

The company does not provide evidence of conducting supplier human rights audits. The company has established a whistleblowing mechanism for its operations and business partners. It describes the investigation and resolution process and states that the whistleblower can remain anonymous. However, the company does not disclose the parties involved in designing the grievance mechanisms. The company reports zero legal actions or employee grievances involving forced or child labour. However, it does not disclose the overall number of grievances.

The company acknowledges the importance of employee health, safety, and welfare. It states that it takes steps to reduce the risk of accidents and maintain a safe working environment. The company also has a health and safety committee tasked to lead risk and hazard assessments in the workplace. However, it does not disclose the number and percentage of facilities with a health and safety committee with worker representatives whether it holds an occupational health and safety certification. The company does not reference evaluating the risk of antimicrobial resistance workers face in its direct operations.

The company reported 199 work-related injuries and zero fatalities in FY2022. However, figures for previous years are not disclosed. The company discloses that the attrition rate in 2022 was 9.7%. However, it does not explicitly tell turnover rates.

The company does not discriminate against employees based on union membership and engages with collective bargaining representatives. However, the company does not have an explicit high-level statement on respecting its employees' right to freedom of association. The company's supplier code of conduct mentions that suppliers must recognise and respect their employees' rights to freedom of association and collective bargaining.

The company discloses that in FY2022, 1,719 employees were covered by collective bargaining agreements. The company does not reveal the distribution of its workforce across existing contractual agreements.

The group discusses monitoring food safety risks throughout the manufacturing and processing stages to mitigate them. It further discloses that it follows various international food safety standards such as HACCP, FSSC 22000, ISO 22000, and GMP, amongst others. Its facilities are reported to be FSSC-certified, which is a GFSI-recognised standard. However, the proportion of the total sites certified is not disclosed. It discloses that suppliers shall uphold compliance with food safety standards and applicable recognised quality regulations, standards and practices required in the markets where its products are registered and distributed. It does not explicitly state whether suppliers are expected or required to have GFSI certification.

The company discloses that its plants undergo regular food safety audits, and its products undergo several quality and safety tests. However, it does not disclose the number, frequency of audits, or corrective action rate. It discloses that batch codes have been standardised and implemented across some of its business segments. It states that standardisation allows for better and more systematic traceability of non-conforming products. However, it is not clear whether this technology is consumer-facing.

The company states that it emphasises the health and safety of its products and recognises the risk of improper quality products. Further, it mentions the batch codes implemented across some of its business segments for improved traceability to facilitate a product recall within 24 hours. However, no further details regarding its recall system are provided. It does not report the number of recall incidents in the reporting period; 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 board is formally mandated to oversee the company's Enterprise Risk Management (ERM) framework. One of the purposes of this framework is to analyse key risk exposures relating to ESG factors. The company states it conducted a materiality assessment and determined material topics. That being said, the material issues have not been publicly disclosed. Furthermore, no board-level expertise in sustainability, food safety or innovation is reported.

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 describe an approach to sustainability innovation.

The company acknowledges that promoting plant-based meats is more favourable for the environment than animal raising, which utilises more land and emits GHG. However, protein diversification is not explicitly acknowledged as a risk mitigation tool or a material business issue. Furthermore, while it has a consumer-facing social media presence for its plant-based brand, "Veega", it does not explicitly acknowledge protein diversification as a consumer-driven trend. It discloses that the revenue from its Prepared and Packaged Food business, which includes plant-based food, was registered at P49.7 Billion in 2022. However, the revenue generated by its plant-based/alternative protein segment needs to be explicitly reported. Further, it must set a timebound target to diversify protein sources.

The company sells plant-based meat products under the brand "Veega", made of mushrooms, wheat and soy. It mentions that its venture into the plant-based market in 2020 was part of expanding and innovating its portfolio in alignment with the United Nations Sustainable Development Goals. However, it does not disclose whether it is still investing for future growth in the plant-based market.