WH Group Ltd

The company mentions that Smithfield Foods used the Global Environmental Management Initiative (GEMI) Local Water Tool and the WRI Aqueduct tool to assess its water impact. In 2022, Smithfield Foods completed a watershed analysis across its vertically integrated supply chain, including U.S. company-owned locations, contracted hog farms and grain suppliers. In China, the company mentions that it regularly tracks and identifies water use risks. However, it´s not clear what risk factors are specifically considered. The company does not disclose the results of the assessment.

The company mentions that in China, it monitors chemical oxygen demand (COD), phosphorus, nitrogen and suspended solids in wastewater. However, it does not disclose the figures. Smithfield Foods discloses that in the reporting year, there were 43 notices of violations at their US Facilities and International sites. The respective fines levied are also disclosed. However, it is unclear whether this is related to non-compliance with water quality permits, standards, and regulations. Although the values of fines collected have been reported, no further details are provided on the reasons for the NOVs or fines collected. The company discloses it has increased its water-related CAPEX by 10% in the reporting year. The company also mentions a $45 million investment in 2023 in a new wastewater treatment plant in one facility in South Dakota. The company says this process has helped to reduce Smithfield’s overall nitrogen load to the Big Sioux River by two-thirds. The company does not disclose information about its operations in China.

Smithfield Foods discloses that it no longer has US locations in high biodiverse value areas after exiting a facility that operated in California in early 2023. For its operations in China, the company mentions that all its operational and production sites are located in areas outside those with fragile biodiversity. It´s not clear what methodology or parameters the company uses to classify areas as having high biodiversity value. It does not provide information about other biomes or watersheds, nor does it address the impact of nutrient pollution on these areas. WH Group has included biodiversity and waste in its materiality assessment matrix. The company states that it has made a commitment to promoting biodiversity conservation and collaborates with suppliers and contractors to uphold biodiversity conservation in various aspects. However, it´s not clear how biodiversity drives the company´s risk assessment for water quality and pollution.

In 2022, the company commissioned a study to undertake a water analysis, aiming to better understand current and future groundwater demands across its U.S. operations, including contracted hog farms and grain suppliers. It´s not clear to what extent water quality risks are included in this assessment. The company does not disclose information about its operations in China.

In 2022, the company commissioned a study to undertake a water analysis, aiming to better understand current and future groundwater demands across its U.S. operations, including contracted hog farms and grain suppliers. It´s not clear to what extent water quality risks are included in this assessment. The company does not disclose information about its operations in China.

The company mentions its Chinese operations promote the circular economy by featuring regional crop production and farming, using the manure produced from farms as an organic fertiliser. However, it´s not clear whether the manure is used by the company´s feed suppliers or third-party arable farmers.

The company mentions that it has standardised internal auditing systems for its farms in the US to ensure consistent environmental compliance across all its operations. However, it is unclear whether non-compliance with pollution is also included. Smithfield Foods discloses that in the reporting year, there were 43 notices of violations at their US Facilities and International sites. The respective fines levied are also disclosed. However, it is unclear whether this is related to non-compliance with water quality permits, standards, and regulations. Although the values of fines collected have been reported, no further details are provided on the reasons for the NOVs or fines collected. The company is encouraged to provide this information. The company does not disclose information about its operations in China.

The company discloses the volume of wastewater that has undergone various levels of treatment for its US operations. The company does not disclose information about the various treatment levels for its operations in China. The company mentions that 5,829 megaliters per year are discharged by land irrigation on its company farms in the US. The company does not disclose information for its operations in China. In the US, the company produces biogas, and it currently operates 133 covered lagoons. It also mentions another project, in which sludge is dried using drying beds in the desert to produce 30,000 tons of dry organic fertiliser per year, which the company notes is easier to handle. In China, the company mentions that it has started a biomass natural gas project, which processes 600 metric tons of chicken manure per day. It also mentions that 100% of the manure produced in farms is converted to organic fertiliser. The company says that it uses a heat pump drying technology for chicken manure, which dehumidifies the manure, inhibits ammonia emissions, and reduces bacterial growth. The company mentions it operates 133 covered lagoons in the US. In China, the company mentions the amount of manure used to produce natural gas, but it is unclear what percentage of sites have covered lagoons.

For its operations in China, the company has internal water management mechanisms at different levels to monitor and manage water risks. In the US, the company mentions that the assessment completed in 2022 helped it develop water conservation strategies, inform updates to its water use policies, and set performance targets. However, it´s not clear whether the company has targets for each area identified as high or medium-risk beyond meeting regulatory requirements.

The company does not disclose information. The company mentions that it promotes a circular economy featuring regional crop production and farming, using manure as organic fertiliser. The company does not disclose information about supporting third-party arable farmers with a sustainable use of manure to minimise pollution risks. In the US, the company runs the SmithfieldGro project, by which it works with upstream farmers to reduce crop inputs. The company focuses on nitrogen management tools to optimise nutrient absorption and reduce the use of chemical fertilisers. The company also mentions that in 2024, it incorporated Agronomic Technology Corporation’s Adapt-N and N-Insight services into its program to reduce GHG emissions in partnership with its agricultural supply chain. The technology helps farmers who produce corn for hog feed improve their economic and environmental performance and minimise potential fertiliser runoff. It is unclear what percentage of farmers are part of this project. The company mentions that it operates 133 covered lagoons in the US and has a target to install biogas systems on 90% of its finishing farms and contract locations by 2030 in the US. However, it is unclear what percentage of suppliers have covered lagoons. In China, it is unclear whether suppliers have covered lagoons.

Smithfield Foods had partnered with Anuvia™ Plant Nutrients to develop and market bio-based fertiliser products from hog manure. However, Anuvia Plants finished its operations in 2023.

The company does not disclose information.

The company does not disclose information.

The company did not respond to the investor letter or the engagement questions. The company met with investors within the engagement period. The company acknowledged the FAIRR´s assessment but did not provide feedback.