Scope 1, 2, and 3 Target   

Feed,

Farm,

Slaughter,

Processing

We assess whether companies have comprehensive Scope 1, 2 and 3 targets that cover the most significant emission sources for livestock/aquaculture sector. In addition, we cover whether companies have methane emission reduction target related to animal farming. 

• Type of target: Non-science-based targets vs. science-based targets with the SBTi. 

• Strength of target: for science-based and non-science-based targets, and for methane target. 

Best practice is awarded when a company sets a science-based emissions target based on a 1.5°C scenario and committed to set a net zero target to be validated by SBTi. Or already has a Net Zero target validated by SBTi. For beef, dairy or pork companies, they must also provide relevant methane reduction target. 

Innovation on GHG emission reduction   

Feed,

Farm,

Slaughter,

Processing

We assess whether companies are actively engaging in innovative projects to reduce or mitigate emissions from feed farming, and animal farming. 

• Supplier engagement to reduce emissions from agriculture. 

• Feed farming innovation. 

• Animal farming innovation. 

Best practice is awarded when the company actively provides some discussion on working with suppliers to reduce emissions from agriculture and engages in innovative projects to mitigate emissions from feed and animal farming to implement across operations. 

Quality of GHG Inventory  

Feed,

Farm,

Slaughter,

Processing

We assess whether companies are reporting their GHG inventory, and whether they cover the most significant sources from animal farming and feed production for livestock/aquaculture sector and whether the data on GHG inventory is audited by a third party. In addition, we assess whether companies with intensive land-use discloses its GHG emissions from land-use change. 

• Quality, completeness and scope of GHG inventory. 

• Completeness of GHG inventory from feed, animal farming emissions and land-use change. 

• Transparency of GHG inventory. 

All – cumulative KPI. 

Emissions Performance  

Feed,

Farm,

Slaughter,

Processing

We assess whether companies are reporting a decrease in emissions, whether companies are reporting quantitative decrease in major sources of emissions (feed/enteric fermentation/manure management), including emissions from feed or methane. 

• Overall emission performance. 

Best practice is awarded when a company has a decrease in absolute emissions >3.03% annually in alignment with SBTi FLAG guidance and has a complete GHG inventory. The company also discloses a quantitative decrease in emissions arising from feed/enteric fermentation/manure management. 

Climate-related scenario analysis 

Feed,

Farm,

Slaughter,

Processing

We assess companies on whether they are conducting scenario analysis and how this analysis informs their decarbonisation strategy and whether the company commits to capital expenditures in line with GHG targets. 

• Climate-related scenarios analysis conducted. 

• Disclosure of analysis results on material risks. 

• Disclosure of financial material events and alignment of CAPEX. 

Best practice is awarded when a company completes a Climate-Related Scenario Analysis and details have been disclosed. The company needs to address the risk of disruption to feed availability and price volatility, increased veterinary and medicine costs, increased energy costs, plans to manage the risk of a carbon tax on electricity and/or animal protein, and discloses the number of financially material events that occurred as a result of climate risk in the reporting period. 

Scope 1, 2 and 3 target 

• New question on methane targets. 

Innovation in GHG emission reduction 

• New question assesses whether the company discloses its GHG emissions from land-use change 

Emissions performance 

• Updated the response options that assess whether the company discloses absolute emission from feed or methane emissions