Almarai Co JSC

In 2020, the company introduced an "Energy Roadmap" to reduce environmental impacts through lower energy use, renewable energy adoption, and enhanced efficiency. By 2022, it released an Energy Policy and Climate Change Position Statement to improve transparency in energy management and emissions reduction. However, it lacks a science-based emission reduction target. The company is involved in cow rearing and poultry farming but does not have a specific methane emission reduction target for its animal farming activities.

The company plans to improve energy performance through efficient consumption and generation from sustainable sources. Its strategy emphasises solar power, water and energy efficiency, sustainable farming, landfill waste reduction, and fuel efficiency, including alternative fuel vehicles. It aims for a 15% reduction in energy consumption across its divisions by 2025, using a 2018 intensity baseline, and seeks to increase electricity from clean energy to 20% by 2025. However, the company has not set targets for reducing Scope 1, 2, or 3 emissions.

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 reports its 2023 emissions as 967,266 metric tonnes CO2e for Scope 1, 895,549 metric tonnes CO2e for Scope 2, and 895,727 metric tonnes CO2e for Scope 3 emissions specifically from refrigerators in stores.

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 did not respond to the latest CDP Climate Change questionnaire. Its sustainability report was audited by Intertek Saudi Arabia Ltd, but only the energy data reported under the GRI was within the scope of this audit.

The company's total emissions increased by 4.5% from 2,638,671 metric tons CO2e in 2022 to 2,758,542 metric tons CO2e in 2023. Emission intensity from manufacturing also rose from 0.90 to 0.94, based on units of finished goods and revenue. Since emissions from agricultural activities and feed production are not reported, the GHG inventory remains incomplete. From 2020 to 2023, absolute emissions grew by 12.8%, from 2,444,732 to 2,758,542 metric tons CO2e, an average annual increase of 4.3%. The company does not provide information on emissions from feed, enteric fermentation, or manure management. Currently, the company's emissions are 967,266 metric tons CO2e for Scope 1, 895,549 metric tons CO2e for Scope 2, and 895,727 metric tons CO2e for Scope 3.

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

The company discusses risks related to changes in commodity prices, including corn, sugar, and soy, essential for its raw materials, but does not address the risk of volatile feed prices due to climate change. While it acknowledges climate change risks like droughts, pests, and diseases affecting agricultural production, it fails to provide mitigation strategies. It omits details on increased heat stress effects, potential animal mortality, and rising veterinary and medicine costs. There is no information on strategies to manage increased energy costs or the impact of a carbon tax on electricity and animal protein. Furthermore, the company has not disclosed the number of financially material events resulting from climate risk in the reporting period.

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

The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.

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 respond to the CDP Forest Questionnaire in 2022.

The company does not disclose any information on how it engages soy suppliers on deforestation and does not provide support to soy producers to encourage deforestation-free production or improve traceability.

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

The company employs regenerative farming practices at its arable farms in Fondomonte, aimed at enhancing soil health, increasing carbon sequestration, and promoting ecological biodiversity. For instance, it leaves 15% of the land fallow to aid soil regeneration on its Californian farms. However, the company does not discuss the outcomes of these initiatives.

The company, a member of the Alliance for Water Stewardship since 2018, ensures water stewardship at its sites. However, while citing the WRI Aqueduct Tool in its 2022 Water Position Statement, it does not disclose the outcomes of its water risk assessment, including the specific locations of operations in water-stressed areas, which requires clarification. In 2023, the company reported a water consumption of 6,381,364 m³, excluding operations in the US and Argentina. Besides its AWS membership, the company has established a water steering group to set targets and develop an action plan for improving water efficiency. It has implemented water management systems and conducts water risk assessments to identify areas for improvement. The company promotes a culture of ownership regarding water stewardship and reports specific initiatives, such as subsurface drip and pivot irrigation in Arizona, lining irrigation canals with concrete in California, and a partnership in Dubai to recycle packaging and treat water for reuse using reverse osmosis techniques.

The company has committed to a time-bound target of increasing water efficiency by 15% by 2025, using a 2018 baseline, across its Manufacturing, Sales, Distribution, and Logistics Divisions. The company employs a monitoring system to optimise water consumption and discloses progress pictorially, indicating approximately 25% achievement towards the target. Through various initiatives, it has reduced annual water withdrawal by 15,984 m³ at Teeba, a subsidiary, and is committed to further reductions. However, it has not disclosed specific targets for reducing overall water withdrawal.

The company has not disclosed water withdrawal or consumption by source or stress level, nor has it provided information on water-related capital or operating expenditures. Additionally, the company has not responded to the latest CDP Water Security questionnaire. Despite this, their sustainability report, including water-related data, has been audited by Intertek Saudi Arabia Ltd. Water withdrawals decreased from 12,981,506 m³ in 2022 to 12,913,791 m³ in 2023, while total water consumption increased from 6,082,047 m³ to 6,381,364 m³ over the same period.

The company operates arable farms in the United States and Argentina, focusing on producing feed for dairy herds. It employs various irrigation methods, including subsurface drip and pivot irrigation, and lines irrigation canals with concrete to minimise water loss. The company has released an Environment Policy and a water position statement that highlight water management as a key area. In 2022, it published an Ethical Sourcing Policy, urging suppliers to exceed legal requirements by reducing natural resource usage. This includes a supplier self-assessment questionnaire to assess compliance with environmental, social, and governance standards. The company aims to establish an ethical sourcing process and audit plan by 2025. While it collaborates with suppliers to endorse this code, specific details on water use in feed farming are absent. The company targets sustainable practices on its arable farms by 2025 and considers implementing regenerative agriculture, though not directly related to water use. It has invested in irrigation infrastructure at its US feed farms to limit water loss. The company supports 4-H (Young Farmers of America) but does not confirm its focus on water use or its impact on its operations or suppliers. On water management, the company plans to initiate and support collaborations to address water risks by 2025, yet lacks detailed guidance or incentives for suppliers concerning water use in feed farming. As a member of the Alliance for Water Stewardship since 2018, the company has adopted practices to reduce water impact and enhance conservation. It reports improved efficiencies in arable and pasture farming, achieving higher yields with reduced water usage.

The company does not disclose the water intensity used for feed production or the proportion of feed sources from water-stressed areas. It emphasises adopting regenerative practices in its arable farming, citing an example in California where approximately 15% of the land is kept fallow for soil regeneration. However, these efforts are not explicitly linked to water security risks. To reduce water loss, the company has implemented subsurface drip and pivot irrigation in Arizona arable farms and is lining irrigation canals with concrete in California.

The company has an Environment Policy with a focus on water management, recently releasing a water position statement. It emphasises the importance of water management for its business's long-term viability and aims to improve efficiency to reduce water withdrawals. In partnership with Alliance Water Stewardship (AWS), it has enhanced pasture farming efficiencies, increasing yields while reducing water consumption. The company has implemented water metering, monitoring, and risk assessments to understand usage better and identifies areas for improvement. Water stewardship plans have been developed to align operations with AWS standards. Despite these initiatives, it is not clear if they cover animal farming operations. The company is encouraged to create a policy specifically addressing water use in animal farming and provide more details on related activities. It has not disclosed the proportion of animal protein commodities sourced from water-stressed areas. While the company supports the 4-H (Young Farmers of America) programme for sustainable farming, it remains unclear if this addresses water use in animal farming or impacts its farms or suppliers. The company has set a target to collaborate with stakeholders to address water risk and enhance conservation by 2025 but provides no further details or guidance regarding support or incentives for suppliers on water use in animal farming.

The company has been a member of the Alliance for Water Stewardship (AWS) since 2018. This partnership has enabled the company to adopt best practices for reducing impact and conserving water. Additionally, it reports improved efficiencies in arable and pasture farming, achieving higher yields with lower water usage.

The company has conducted risk assessments to understand its water usage and identify areas for improvement but does not disclose the results, leaving it unclear if water quality risk is included. It reports no incidences of non-compliance with environmental laws and regulations, suggesting compliance with water quality permits. The company aims to improve water efficiency by 15% across all divisions by 2025, compared to a 2018 baseline. However, it does not set or disclose targets for wastewater quality or volume.

The company has not responded to the latest CDP Water questionnaire. It discloses that it has discharged 9,268,040 m³ of wastewater, excluding operations in Argentina and the US, but does not provide information on the quality of the discharged wastewater. The sustainability report, including waste and effluents data, has been audited by Intertek Saudi Arabia Ltd.

The company produces organic fertiliser at its EcoChar Gasification plant using poultry litter but does not convert animal by-products from processing effluents into fertiliser or biogas. It has not disclosed wastewater quality, making it inapplicable to determine improvements at the aggregate level compared to the previous reporting period. The volume of water discharged decreased from 9,731,669 m³ in 2022 to 9,268,040 m³ in 2023.

The company does not address nutrient management in its code of conduct. It does not disclose a requirement for feed suppliers to have a nutrient management plan in place, nor does it provide guidance, support, or incentives to suppliers/growers on nutrient management or fertiliser use in crop production.

The company claims to practise regenerative agriculture in its feed farming operations, aiming to enhance soil health and vitality. It asserts that fertiliser and pesticide application in Argentina complies with local regulations but provides no additional details on pesticide usage in feed farming.

The company has not provided information about conducting risk assessments to identify high-risk locations. However, it discloses that its poultry litter charring operations in Hail produce organic fertiliser using poultry litter.

The company does not make site-specific nutrient management plans part of its supplier’s contractual agreement or its own farms management. Nor does it provide technical or financial support to suppliers or its 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 innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company emphasises preventative health in its farming operations through vaccination and good husbandry and states that no antibiotics are used to treat broiler chickens. It has implemented biosecurity health plans to protect cow health, incorporating vaccination, animal husbandry, and hygiene practices. While the company provides treatment for poultry and cows as necessary, following evidence-based protocols and temporarily removing animals from production until full recovery, it does not have a comprehensive antibiotics policy applicable to all species. Furthermore, the company does not disclose the categories of antibiotics covered by its policy.

The company does not disclose the quantity of antibiotics used.

The company complies with the 'Five Freedoms' for animals and is committed to safeguarding the health and wellbeing of all animals in its care, ensuring humane treatment throughout their lifecycle. It has conducted training for on-site employees and established an Animal Welfare team to meet the NSF Global Animal Wellness Standards certification. All its dairy and poultry farms are certified under these standards. However, the company does not disclose actions taken or planned for breaches of animal welfare policy, nor does it provide information on participation in research and development programmes aimed at advancing animal welfare.

The company does not disclose commitments to avoiding long-distance transportation, humane slaughter, avoiding routine mutilation, or excluding breeds prone to anatomical or metabolic disorders. The company states that all its animals are raised in enclosed housing, with chickens in cage-free farms and cattle provided with resting areas, air cooling, and showering facilities year-round. However, there is no information on an enriched environment for animals.

The company has received International Animal Wellness certification from NSF International for its dairy and poultry farms and operations.

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

The company does not disclose information on key welfare risks in dairy. However, it states that all poultry are raised cage-free.

The company has a comprehensive policy commitment to uphold all internationally recognised human rights as outlined by the International Bill of Human Rights and the core ILO conventions.

The company does not discuss how it monitors, assesses, and mitigates actual and potential human rights risks in its 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, abuse, child labour, and forced labour, and ensures compliance with wage laws and regulations. However, it is not committed to fair wages or sick pay, and does not specify whether it audits policy compliance in its operations. The Ethical Sourcing Policy requires suppliers to forbid child labour, discrimination, and abuse, yet it does not include a commitment to prohibit forced labour or promote living wages in the supply chain.

The company describes its grievance mechanism for direct operations, hosted by a third-party hotline that maintains user anonymity. It reports that the whistleblowing hotline is accessible to all internal and external stakeholders. However, the company does not disclose whether these mechanisms were designed in consultation with stakeholders, such as employees or unions, nor does it disclose the number of grievances received in the reporting year. Additionally, the company does not mention conducting audits for selected policies in its supply chain.

The company is committed to protecting employee health and safety and has achieved ISO 45001 certification across all business units as of July 2023. A health, safety, and security committee with worker representatives exists, although its coverage across company sites is unspecified. The company reports not using antimicrobials in the treatment of broiler chickens. However, it does not disclose antibiotic use in cows or address antimicrobial resistance risk for the workforce.

The company reports a reduction in lost-time injury rates for its operations in GCC countries, the USA, and Argentina compared to the previous reporting year, listing a rate of 1.76 for employees and 0 for contractors. However, subsidiaries Beyti and Teeba experienced increased employee lost-time injury rates of 0.6 and 3.71, respectively, and contractor rates of 0.3 and 0. Additionally, the company discloses a total voluntary turnover rate of 10.2% for 2023. Subsidiaries Beyti and Teeba have turnover rates of 6.2% and 7.8%, respectively, though these figures are not broken down by seniority level. The company does not provide information about fatalities for the reporting or previous years, without any public disclosure of fatality rates.

The company provides a basic statement on the right to freedom of association and collective bargaining but does not disclose the unionisation rate among its workforce. It also fails to disclose measures to support workers' rights or require suppliers to respect these rights.

The company asserts its respect for employees' rights to freedom of association and collective bargaining, but does not disclose how many are covered by such agreements. It provides data on the number of full-time versus part-time employees for its subsidiaries, Beyti and Teeba, yet this information represents only a limited portion of its overall operations.

The company states that all its manufacturing facilities uphold FSSC 22000 Food Safety certifications, recognised by the Global Food Safety Initiative (GFSI). The company has set a target for all high-risk ingredient suppliers to be GFSI-certified by 2025, and currently, 74% of suppliers have attained this certification.

The company does not report the number or frequency of food safety audits conducted during the reporting year. It also does not specify associated corrective action rates, nor does it disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company does not provide a description of its product recall system, but discloses there were no product recalls during the reporting period.

The company does not address the issue of market bans in the reporting year, nor were any market bans detected in media screenings.

The company does not disclose a board mandate or any board-level expertise for overseeing ESG issues. Though it updated its materiality assessment in 2023 and identified key risks such as quality and food safety, climate change, nutrition and wellbeing, health and safety, and water management, it does not specify board involvement in this process. The company reports that two senior management members have experience in product development and innovation. Additionally, one senior management member has an educational background in food safety, though there is no disclosed experience beyond this.

The company does not disclose executive monetary remuneration linked to climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues, providing a comprehensive list of trade association memberships, or aligning any policy engagement activities with the goal of restricting global temperature rise to 1.5°C.

The company prioritises innovation in packaging, focusing on research and development to minimise environmental impact. However, it does not publicly benchmark itself against peers in sustainability and innovation.

The company does not explicitly acknowledge that protein diversification is a material business issue. Furthermore, it has not yet set a time-bound target to diversify protein sources, nor does it report revenue or sales linked to alternative protein sources.

The company does not indicate an approach to diversifying its product range to include plant-based and alternative protein options.