Seaboard Corporation

The company is a vertically integrated pork producer primarily producing and selling fresh and frozen pork products to further processors, food service operators, distributors and grocery stores. It has six reportable segments, i.e. Pork, CT&M, Marine, Sugar and Alcohol, Power and Turkey. It also reports producing 70 million gallons of biodiesel from its Food division. However, the company has not yet set a science-based emission reduction target.

The company does not disclose any of its operations' emissions-related targets for Scope 1 and 2. It is a vertically integrated pork producer. However, it purchases animal feed and feed ingredients from third-party suppliers. Emissions from feed would, therefore, be accounted for in Scope 3. However, it does not disclose whether it has set targets to reduce GHG emissions from Scope 3.

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 does not engage in innovative projects to reduce or mitigate emissions from animal farming

The company does not disclose any information on GHG 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 does not disclose any information on the emission performance. The company does not disclose a quantitative decrease in emissions arising from feed or enteric fermentation or munure management.

The company does not disclose information on a climate-related scenario analysis.

The company discusses that fluctuations in commodity pork prices increase the cost of feed components, and the third-party hogs it purchases are driven by matters over which the company has no control, such as weather. These pose a significant risk to the company's finances and overall operations. However, it has yet to carry out a formal climate-related scenario analysis and does not relate this to climate change. The company's seaboard division has a team of veterinarians to guide all the company decisions regarding caring for its pigs. However, there needs to be discussion about the potential increased cost of veterinarians and medicine due to climate change.

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

The company does not disclose information related to where soy used in animal feed is sourced and how it manages deforestation risks linked to soy. The company owns and operates eight feed mills as part of its hog production facilities, and soy is a key feed ingredient for its hog production. It also owns a Commodity Trading and Milling (CT&M) Segment which is an integrated agricultural commodity trading, processing, and logistics company. Overall, the CT&M segment has facilities at 13 locations in 9 countries. This segment sources, transports, and markets wheat, corn, soybeans, soybean meal, and other commodities.

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 related to 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 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.

The company has not conducted a risk assessment for its processing facilities. It discloses water recycling as its water conservation measure. It tells waster use intensity relating to the production of pork. However, it does not disclose the total amount of water consumed in its processing facilities.

The company has not set a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

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.

The company sources soy as a critical ingredient for its hog and turkey operations. However, it does not disclose information relating to water scarcity risks in feed farming. The company broadly states that water conservation is part of its natural resource conservation efforts, but no further details are provided.

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 discloses that it carries out weekly monitoring of farm water use whereby it assesses the condition and the style of drinking systems to minimize waste. However, it does not provide further detail.

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 mentions that it performs farm audits to maintain its feed and water lines alongside the quality and consistency of manure applications. There needs to be more information regarding third-party audits of wastewater discharged by the company.

The company produces biogas from the Seaboard Foods wastewater system by repurposing animal fat via its subsidiary - Seaboard Energy. The company recovers the organic matter from wastewater to turn it into biogas. The energy is transferred to the interstate pipeline network.

The company does not disclose information relating to pollution management and water quality in feed farming. It makes a high-level reference to soil conservation and using natural fertiliser in its Seaboard Foods division. However, it is unclear if these measures extend to feed suppliers.

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 mentions that it captures methane from its hog lagoons and injects it as renewable natural gas into the local pipeline infrastructure. Seaboard does not mention whether effluents from the lagoons are treated before being applied to the land. It maps farms to understand where environmental threats may exist in neighbouring fields. However, it needs to provide further details.

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 excluding medically essential antibiotics for therapeutic, prophylactic, or growth-promotion purposes, employing only non-medically necessary antibiotics for medicinal needs. It maintains comprehensive records of antibiotics used and adheres to necessary withdrawal periods. Furthermore, it aims to minimise antibiotic use by maintaining pig health through proper housing, cleanliness, nutrition, and vaccinations.

The company commits to reducing antibiotic use in future years and maintains detailed internal records. However, it does not publicly disclose this data or report the percentage of animals treated with antibiotics.

The company commits to animal welfare through an animal care programme overseen by veterinarians and maintains a zero-tolerance policy for mistreatment. It provides employee training on barn and handling protocols, adhering to industry standards. However, it does not publicly endorse the Five Freedoms and lacks disclosure on actions taken for policy breaches.

The company adheres to the United States Department of Agriculture (USDA) and National Pork Board guidelines on animal welfare. It is also part of a USDA Process Verified Programme on animal handling. Furthermore, the Seaboard division complies with Pork Quality Assurance Plus (PQA Plus) for animal transportation. However, the company does not commit to humane slaughter or avoiding close confinement. It also lacks specific guidelines on minimising long-distance animal transportation.

The company's fresh pork products from Seaboard Foods are USDA Process Verified, focusing on proper in-plant handling for animal welfare and meat quality. It also commits to daily animal handling audits and employee training. However, its operations are not certified by a farm assurance programme.

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

The company states pain medication is supplied after tail docking and surgical castration in pork production. It also uses carbon dioxide chambers and captive bolt methods to euthanise pigs under three weeks old.

Tthe company does not disclose a comprehensive policy or commitment to respect all human rights.

The company does not disclose how it assesses, monitors and mitigates potential human rights risks.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence

The company's Food division mentions in its Code of Conduct that discrimination and harassment against employees are not tolerated. It further says it is committed to a work environment free from human trafficking, including forced labour, unlawful child labour and commercial sex trafficking. The Food division also extends these commitments to its supply chain. However, these commitments do not cover the company's operations outside the Food division. Furthermore, the company must audit these policies or commit to promoting fair wages.

Suppliers are not mandated to undergo audits concerning human rights policies. The company's Food division has a grievance mechanism in place which allows employees to report violations anonymously and without any fear of retaliation. However, it is unclear if the policy is designed in consultation with the stakeholders or if suppliers have access to a grievance mechanism. The Food division does not report the number of grievances it received in the reporting year.

The company states that a safe and humane work environment is a priority but does not disclose an occupational health and safety certification. The company does not disclose having health and safety committees.

The company shows an upward trend in its Total Recordable Incident Rate (TRIR). The company's Food division reported 1.04 TRIR in processing plants in FY2020, and this rate increased to 2.78 in FY20221. Six lost time plant injuries and 23 lost time farm injuries were recorded in FY2020, which, in the reporting year, increased to 22 plant injuries and decreased to 17 farm injuries. The company does not disclose fatality data. The Food division has a turnover rate of 26%.

The company's Food division mentions that employees have the right to associate freely and that, in 2022, 36% of employees were union members. However, no company division describes measures taken to support rights. Furthermore, the company does not discuss whether suppliers must respect their employees' right to freedom of association and collective bargaining.

The company's hourly salaried employees in their processing facilities, which account for 45% of all employees of the pork division, are all covered by a collective bargaining agreement that expires in 2026. Also, the company provides breakdowns of its hourly and salaried staff, both for its processing facilities and animal farms. It also includes information on the number of animal farms that are contract farms. However, it does not disclose what type of contractual agreements are in place on their contract farms, nor does it provide a breakdown of the nature of the contracts of their salaried staff.

The company's Seaboard Foods division follows HACCP protocols and practices. Moreover, it states that its quality control points are certified by USDA Process Verified. Regarding GFSI-recognised standards, it reports that its Guymon pork processing plant is SQF-certified. However, it is unclear what proportion of total sites this constitutes, and it does not disclose whether any other sites are GFSI-certified. Further, it does not confirm whether suppliers are expected to hold GFSI certification nor reveal the portion of those that do.

To operate a USDA Process Verified Program, the company underwent a rigorous application process, including source verification through third-party and independent audits. However, it does not disclose the frequency of audits related to food safety or a corrective action rate. It specifies that its pork products can be traced back to source farms through a source verification system. The USDA also verifies this. However, the traceability system is not explicitly mentioned to be consumer-facing.

The company has identified product recalls as a material risk that could adversely impact its operations, financial condition and business. However, it does not describe its product recall system. It disclosed zero product recalls in 2021.

The company does not disclose any incidents of market bans, and none were detected in media screening during the reporting period.

The company discloses a range of risks within its annual report. However, it is still being determined how these risks were identified and the level of involvement the board of directors has in identifying them. Furthermore, the company does not discuss whether the board has a formal mandate to discuss ESG issues or if it holds any board-level expertise in sustainability, food safety or innovation.

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 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 does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources

The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.