Vital Farms Inc

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

The company has set its first GHG emission reduction goal, committing to reduce Scope 1 and 2 emission intensity by 25% by 2027 from a 2022 base year for its operations. It purchases pastured-raised eggs and has a supplier base of more than 300 family farms from Oklahoma to the Carolinas. Therefore, Scope 3 emissions are relevant to the company. It mentions that it continues to grow and scale, partnering with more farmers and bringing more ethically produced food to the market, and its Scope 3 inventory is also increasing. It also mentions that it started using carbon-neutral 18CT hybrid egg cartons in the current reporting period to reduce its packing and Scope 3 emissions. However, it does not disclose a quantitative target to reduce Scope 3 emissions.

The company aims to engage with all farmers in regenerative agriculture practices by 2026 to help farmers build soil health and increase resilience to flood and drought. As regenerative agriculture will contribute to emission reduction from agriculture, points are awarded on this question.

The company mentions that in 2021, it conducted a climate-risk assessment on its farm locations and feed mills. It also assesses its supply chain to improve overall farm resilience by addressing risks and opportunities like climate change, drought, cost of feed and transportation, and flock performance. However, it does not talk about reducing or mitigating feed emissions specifically.

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

The company discloses its Scope 1, 2 and 3 emissions for 2022 and 2021. The Scope 1 emissions are reported to be 3,983 tCO2e, and the Scope 2 emissions are 1,955 tCO2e. For Scope 3, the total emissions are reported to be 168,375 tCO2e.

The company discloses its Scope 3 emissions for 2022, including purchased goods and services as 138,877 tCO2e. This will include eggs produced in its supplier farms. It discloses its Scope 3 emissions for 2022, including purchased goods and services, as 138,877 tCO2e. This will include feed sourced by the company.

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's total emissions amounted to 155,405 tCO2 in FY2021 and increased to 174,313 tCO2 in FY2022. Therefore, it reported an increase of 12.16% in total emissions from 2021 to 2022. It reports 18,140t of manure generated in FY2021, which increased to 47,248.6 tonnes in FY2022.

The company describes the climate-related risks and opportunities for its direct operations, supply chain, feed and consumer reputation. It also mentions that in 2022, farmers faced extreme heat days over the summer and a continued risk of avian influenza. It carried out in-person conversations with the farmers about these topics. However, it does not mention conducting a climate scenario analysis.

The company states that corn and soy, which Vital Farms and its farmers rely on for feed, are vulnerable to adverse weather conditions and natural disasters. The occurrence and severity of such events may result in increased prices. However, it does not disclose how it intends to mitigate or adapt. It states that heat stress caused by rising global temperatures and water stress caused by drought create more challenging animal environments. Additionally, climate change increases the risk of infectious diseases and such risks may negatively impact animal production. However, it does not disclose mitigation plans.

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

The company's hens are raised on pasture and are fed seasonal clover, rye and wild onion, alongside insects such as grasshoppers and worms. However, they also eat supplemental feed, which includes corn and soy. Furthermore, it sources its eggs from a network of more than 300 small family farms under buy-sell contracts. In this model, the supplier farms are responsible for purchasing animal feed. However, it is unclear whether the company has a policy or requirements regarding the feed purchased by its suppliers.

The company has not yet committed to sourcing deforestation-free 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 how it engages with soy suppliers on deforestation risks.

The company does not disclose monitoring its suppliers on deforestation or the extent to which it has traceability of soy sourced.

The company mentions that it launched Restorative pasture-raised eggs in 2022. Four of its selected farms in its pilot program employ regenerative practices to promote rich, nutrient-dense soil. It also works with Regen Ag Lab, a third-party soil testing service that collects and tests soil samples annually on each of the four farms. It discloses a target to engage 100% of its farmers in additional regenerative agricultural practices by 2026.

The company has identified that its Egg Central Station (ECS) in Springfield, Missouri, is located in a low-medium water risk region using the WRI Aqueduct water risk atlas. It mentions that it does not withdraw or consume water from high-water stress areas. The company discloses its water consumption from production facilities. It also describes various water-saving measures.

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

The company disclosed water withdrawal by source in the previous reporting period. However, the same is not reported in FY2022. The reports total water withdrawals for 2022 and states that 0% was withdrawn from high baseline water stress areas. The company discloses that water withdrawal has decreased in FY2022. Water consumption, on the other hand, has increased from in FY2022.

The company sources pasture-raised products from a network of more than 300 small family farms under buy-sell contracts. The company states that all its farmers maintain their land according to the USDA Organic Standard, though not all choose to undergo the third-party certification to earn the seal. The Farm Support and Farm Compliance teams provide guidance and assistance to ensure farmers maintain robust internal standards. It mentions that 15% of feed is sourced from regions with High or Extremely High Baseline Water Stress and is further exploring the impacts of increasing water stress. However, the company needs to discuss addressing water scarcity in its feed supply chain.

The company mentions that 15% of its animal feed is sourced from high-water stress areas, including sourcing soy and corn.

The company mentions that 16% of contracts with producers are located in regions with high or extremely high baseline water stress. It sources shell eggs and dairy products from supplier farms. It mentions that 16% of its contracts with producers are located in regions with High or Extremely High Baseline Water Stress. However, the company needs to provide more information on addressing water scarcity in its animal supply chain.

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

The company disclosed zero non-compliance with water quality permits, standards, and regulations 2022. It mentions that its Egg Central Station (ECS) lies in a "low-medium" water risk region in Springfield, Missouri. However, the company does not specify that this includes water quality risks.

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 aims to engage 100% of its farmers in additional regenerative agriculture practices by 2026. Increased training, educational resources, and funding opportunities will assist each farmer in implementing at least one extra method to build stronger resilience on farms. The company mentions Regen Ag Lab, its third-party soil testing service, which measures the quantity of soil nutrients. However, the company does not disclose how it addresses nutrient management with its feed suppliers.

The company has a farm support and compliance team which provides guidance and assistance to farmers and expects them to practice crop rotations. However, the company does not discuss similar practices with its feed suppliers. Vital Farms mentions that its egg farmers do not use pesticides or herbicides on their pastures, and the company believe pasture rotation protects the health of the land. However, it does not provide information for feed suppliers.

The company states that 100% of animal litter and manure produced by its farm network was managed according to a nutrient management plan. However, it does not disclose waste conversion into fertiliser or biogas.

The company mentions that 100% of animal litter is managed according to a nutrient management plan.

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 is USDA National Organic Program certified and must adhere to its regulations prohibiting antibiotics. It has also secured Certified Humane status by Humane Farm Animal Care, emphasising animal welfare and reducing the need for antibiotics through an outdoor-only farming model. However, it does not explicitly disclose its antibiotics policy.

The company reports that 0% of animals received medically essential antibiotics (MIAs) and non-MIAs in 2022. Certified Humane audits data on antibiotics usage.

The company's entire egg production is Certified Humane, a recognised gold standard in animal welfare. It commits to providing ongoing guidance to farmers on animal health and welfare issues and has collaborated with Ovabrite for research on male chick culling. However, the collaboration has dissolved as of August 2022 without further details.

The company commits to avoiding close confinement for hens and adheres to Certified Humane® standards, providing 108 sq feet of pasture for layer hens. It also implements humane slaughter methods and offers elements of an enriched environment through quality pastures and rotation practices. However, the firm allows beak trimming on birds under ten days without a specific commitment to avoid routine mutilation. The application of welfare measures across all operations is unclear, and there is no commitment to exclude breeds with production traits that heighten anatomical or metabolic disorders.

The company commits to maintaining all farms to USDA National Organic Program (NOP) standards and ensures that all eggs are Certified Humane. Additionally, its dairy farms meet the National FARM Program standard. The company commits to annual internal audits and frequent farm visits with Wilson Veterinary Company for regulatory, customer, and certification compliance. All dairy farms are committed to the National Dairy Farmers Assuring Responsible Management (FARM) program and Animal Care Standard.

The company commits to animal welfare criteria and discloses that 100% of its production facilities meet the standard for cage-free eggs.

The company commits to 100% cage-free egg production, adhering to the Humane Farm Animal Care (HFAC) Certified Humane "Pasture Raised" standard. It also provides hens with year-round outdoor access and nest boxes.

The company commits in writing to respect, uphold and promote human rights. It also supports human rights practices outlined in the United Nations Guiding Principles on Business and Human Rights.

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 prohibits harassment, discrimination, child labour and forced labour and promotes fair wages in its operations and supply chain. The company also discloses that it launched its first Diversity, Equity, and Inclusion (DEI) Survey in 2022 with the support of Culture Amp, a third party. However, it does not explicitly state that this monitors compliance with all the selected policies. The company does not refer to sick pay in its disclosure.

The company does not discuss conducting human rights audits in its supply chain. The company reports that it has an anonymous issue reporting mechanism. However, it seems that the hotline only applies to the matters listed in the Code of Business Conduct and Ethics, which does not include issues relating to human rights.

The company provides a health and worker safety policy stating its commitment to protecting the health and safety of all its workers by preventing work-related injuries. However, it does not mention any health and safety-related certification or health and safety committees. The company discloses using no antibiotics during the reporting year.

The company reports a decrease in the total recordable incident rate from 9.8 in the previous year to 7.0 in the current year. The company's fatality rate has remained zero for both FY2022 and FY2021. The company does not disclose turnover figures.

The company states that it respects freedom of association and the rights of employees to bargain collectively but does not disclose measures taken to support these rights. It also mentions that a labour union represents none of its employees. In the supplier Code of conduct, the company requires all suppliers to respect the right of workers to form and join organisations of their choosing and recognise workers' rights to bargain collectively through those organisations.

The company provides an introductory statement on the right to collective bargaining. The company also mentions that of its 368 full-time crew members, only one crew member is a contract worker. The company does not disclose whether it employs part-time workers or the number of workers covered by a collective bargaining agreement.

The company states that its ECS plant has achieved SQF Level 3 certification, the highest level of certification recognised by the GFSI. It has just one egg processing facility, Egg Central Station (ECS) in Springfield, Missouri. 100% of the sites are therefore certified. Further, it states that 100% of the suppliers were certified by a GFSI certification program. However, whether suppliers are explicitly expected or required to have such certifications is unclear.

The company discloses that its only egg processing facility has voluntarily elected to undergo annual unannounced certification audits by SQF Institute (SQFI), which includes food safety. In addition, the ECS is considered a SQFI Select Site. It mentions that the GFSI audit non-conformance rate was 0%, and no corrective actions were required for any major and minor non-conformances. Further, it has introduced a traceability product feature that allows customers to see 360° video footage of the family farm on which the eggs were laid.

The company states that food safety issues and food-borne illness incidents pose a material risk to the business as they could expose the company to lawsuits, recalls or regulatory actions, affecting both reputational and operating costs. However, it does not provide details of its product recall system. It issued zero product recalls in 2022.

The company does not export products. It did not have any market bans in 2022.

The board has oversight of the Nominating & Corporate Governance Committee, which oversees the strategy, initiatives, practices, and reporting relating to ESG matters. In addition, the company states it conducted a materiality assessment in 2021 and publicly discloses its 17 material topics. The material topics include diversity and inclusion, climate change, product quality and safety, health and safety, animal welfare and energy management. However, it does not disclose board involvement in the assessment. The company discloses board-level expertise in sustainability rather than innovation or food safety.

The company has not disclosed executive monetary remunerations linked with climate or sustainability performance. Nor has it announced 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 emphasises innovation and product development to meet consumer demands, explicitly referring to the need for ethically produced food products. The company is a member of the Sustainable Packaging Coalition and has a unique traceability product feature which allows anyone to see 360° video footage of the family farm on which their eggs were laid. Further, to create its materiality matrix, the company worked with independent experts to identify the ESG issues most impactful to the business and stakeholders. This process included industry benchmarking.

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 alternative proteins.