Astral Foods Ltd

The company has appointed an energy consultant to help implement alternative energy solutions, aiming to reduce carbon emissions by 50% by 2030 and achieve net zero by 2050. However, it does not have a science-based emission reduction target.

The company, a leading integrated poultry producer in South Africa, has not set or disclosed targets to reduce Scope 1, Scope 2, or Scope 3 GHG emissions. It reports coal and energy savings for FY2023 and is exploring strategies to reduce reliance on coal-derived energy, including alternative energy solutions. The company is collaborating with an international firm to potentially convert chicken manure into biogas to replace LPG at one of its farms. With four fully integrated broiler production units, a large portion of poultry is reared by contract producers. The company supplies various feed ingredients, including maize and soy, making Scope 3 emissions from agriculture relevant.

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 199,541 tCO2e of Scope 1 emissions from coal, diesel, and LPG, and 285,899 tCO2e of Scope 2 emissions. However, it does not disclose Scope 3 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 the CDP climate change questionnaire. The company does not disclose whether the GHG inventory data is audited by a third party.

The company recorded a slight increase in Scope 1 emissions and a significant decrease in Scope 2 emissions from 2022 to 2023. Total emissions reduced by 8.75%, from 531,982 tCO2e in 2022 to 485,440 tCO2e in 2023. Over the period from 2021 to 2023, absolute emissions decreased by 7.5%, equating to an average annual reduction of 3.7%. In 2023, Scope 1 emissions were 199,541 tCO2e, while Scope 2 emissions were 285,899 tCO2e. The company does not provide quantitative data on emissions from feed, enteric fermentation, or manure management.

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

The company identifies low crop yields, high raw material costs, and volatility as significant risks, particularly since feed commodities represent 84% of its poultry and animal feed requirements. Extreme weather events like heatwaves, droughts, and floods affect feed availability and price volatility, but the company does not mention any mitigation strategies. Veterinary services are in place to monitor chicken health, with preventive medicines used to control food-borne diseases. However, increased veterinary and medicine costs are not addressed. Rising energy costs are recognised as a business risk. The company is transitioning to alternative energy sources, including direct supply from Eskom, and is exploring converting chicken manure into biogas to replace LPG at farms. It also anticipates incurring carbon taxes starting in 2026 for operations with Eskom and Local Authorities. Efforts to avoid substantial carbon taxes include reducing coal usage and enhancing energy efficiency. In 2023, the company experienced supply disruptions due to heatwaves, drought, and flood.

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 does not discuss innovations or practices to move towards sustainable feed sources.

The company acknowledges that South Africa, its headquarters' location, is a water-scarce country. In 2023, a water shortage disrupted its operations, yet there is no evidence of a formal water risk assessment to identify facilities vulnerable to water stress. The company identifies water supply and quality as significant business risks and outlines mitigation strategies, including expanding reservoir capacity, implementing water-saving measures, purifying and recycling water, and investing in reverse osmosis plants. It is also exploring alternative water sources and engaging with local communities to reduce water withdrawals. These initiatives have enhanced water recycling and treatment capacity, contributing to water security and business continuity. The company reports total water consumption of 5,941,246 kilolitres.

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

The company reports a water consumption of 5,941,246 kl in 2023, a reduction of 8.32% from 6,480,689 kl in 2022. This includes 874,029 kl sourced from boreholes and 5,067,218 kl from municipal sources. However, it does not disclose water consumption or withdrawals by water stress level. In 2023, the company incurred a total capital expenditure of ZAR398 million, with ZAR168 million allocated to power and water supply infrastructure. Details specifically regarding water-related CAPEX are not provided. Additionally, ZAR1.7 billion was spent on disruptions in water and electricity supply as operating expenditure. PricewaterhouseCoopers Inc audited the company's financial matters until 1 October 2023, when the Board recommended appointing Deloitte Inc as the external auditor. Nevertheless, non-financial metrics are not yet audited by a third party. The company has not responded to the CDP Water Security questionnaire for 2023.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.

The company does not disclose the proportion of animal protein commodities sourced from water-stressed areas. It can process 6,200,000 broilers per week at sites in South Africa, a region recognised for high water stress risk. The company identifies water scarcity as a major risk that could adversely impact its performance and increase costs. The company is working with water experts from the National Cleaner Production Centre to enhance water efficiency at its County Fair operations, with potential expansion to other areas. However, there is no evidence of guidance, support, or incentives provided to suppliers on water use in animal farming.

The company is collaborating with water experts from the National Cleaner Production Centre to enhance water efficiency at its vertically integrated County Fair operations.

The company discloses that its Festive business received six fines for environmental non-compliance due to high levels of suspended solids in water samples. Festive is a processing facility with breeding and hatching operations in Olifantsfontein, South Africa. The company reports water savings from conservation measures and efficiency improvements but does not provide quality or volume targets. It also lacks a volume target for wastewater at its facilities and does not disclose which processing facilities operate in areas with high or medium water stress.

The company discloses a wastewater discharge volume of 4,126,798 kl for 2023 but does not provide information on its quality. Its non-financial metrics are not audited by a third party, and it has not responded to the CDP Water Security 2023.

The company prioritises effective waste management through its "zero waste-to-landfill" strategy, partnering with innovative waste service providers to divert waste via compost production. In 2023, 90% of its waste was recycled, with the Goldi abattoir contributing animal by-products for composting. However, the company does not disclose information on the quality of water discharged. In 2023, water discharge rose significantly to 4,126,798 kl from 2,829,661 kl in 2022.

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 does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company sells chicken manure to composting companies for fertiliser production and is collaborating with an international partner to convert chicken litter into Compressed Natural Gas (CNG) and Liquid Natural Gas (LNG), although discussions on this partnership are still ongoing. The company does not conduct risk assessments to identify high-risk locations.

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.

There is no evidence that the company integrates nutrient management performance into incentive schemes for farmers. It sells chicken waste to compost producers. Although the company claims to engage regularly with local communities at each operation, it is unclear if pollution impacts around farms are discussed.

The company acknowledges using antibiotics under strict veterinary supervision for disease prevention, control, and treatment, indicating an awareness of antimicrobial resistance. However, it lacks a comprehensive antibiotic policy. It implements measures to maintain animal health and reduce antibiotic use internally and among suppliers, including disease monitoring and vaccination protocols, with some vaccinations pending government approval for the current bird flu strain. Protocols for the culling and disposal of affected birds are provided, alongside preventive measures such as bird proofing. The company describes its biosecurity practices, which include regular cleaning, disinfection programmes, and contingency plans for a bird flu outbreak.

The company does not disclose the quantity of antibiotics used.

The company adheres to the South African Poultry Association’s Code of Practice for animal welfare, which aligns with the Five Freedoms. However, it provides insufficient detail on its animal welfare statement, focusing primarily on the housing environment for poultry. While the company offers employee training in areas such as food safety, biosecurity, technical skills, and health and safety, there is no explicit evidence of training specifically on animal welfare issues. The company does not disclose actions taken in response to breaches of its animal welfare policy or evidence of research and development programmes to advance animal welfare.

The company states that it employs a floor rearing system with all broilers reared cage-free but does not disclose its stocking density policies. There is no commitment to avoid routine mutilation, long-distance transportation, or ensure humane slaughter. While the company discusses appropriate housing conditions, including bedding, lighting, ventilation, and temperature control, it does not provide information on enriched environments like access to perches, outdoor areas, or stimuli for the birds. Additionally, the company does not commit to excluding breeds with traits that amplify anatomical or metabolic disorders, and it uses the Ross 308 breed, known for a high feed conversion ratio and fast growth rate, which is prone to leg deformities.

The company does not disclose information on animal welfare certifications or farm assurance programs.

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 animal welfare risks in beef.

The company claims to support and respect human rights and indicates that its Social and Ethics Committee work plan focuses on the UN Global Compact Principles and the UN SDGs. However, it lacks a comprehensive policy commitment to uphold all internationally recognised human rights, as defined by the International Bill of Human Rights and core ILO conventions, across its entire operations.

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 discrimination, harassment, forced labour, and child labour. It discloses paying a living wage for entry-level skilled employees but does not confirm this for all workers. Additionally, the company does not disclose its policy on sick pay. The company does not monitor compliance with its policies in direct operations through audits. Although external suppliers must adhere to its Ethics Policy, it does not explicitly require them to promote fair wages or prohibit child labour, forced labour, discrimination, and abuse. It is recommended that the company publish a statement mandating suppliers to follow these principles.

The company has implemented a grievance system, managed by a third-party, Deloitte, allowing incidents to be reported via 'Tip-Offs Anonymous' for internal audit investigation. However, it does not disclose if stakeholders were consulted in designing this mechanism or if it applies to suppliers. In 2023, the system generated 31 reports, though these were not categorised by health and safety or workers' rights violations.

The company makes a general commitment to reducing work-related accidents to enhance employee health and safety but does not mention any relevant certifications. Although it indicates that senior managers are legally appointed to oversee occupational health and safety in each operation, it is unclear whether a health and safety committee with worker representatives exists. There is no evidence for this KPI.

For the reporting year, the company recorded 368 total recordable injuries, resulting in a Total Recordable Injury Frequency Rate (TRIFR) of 1.39. This is a decrease from 428 injuries in 2022, although the injury frequency rate rose from 1.18. The company also reported an increase in fatalities, from one in 2022 to three in 2023. It does not disclose its turnover rate.

The company has 3,377 permanent employees and 312 part-time workers in trade unions during the current reporting period. While it has established engagement platforms with unions to facilitate collective agreements and resolve issues, it does not provide clear evidence supporting freedom of association. Furthermore, the company does not disclose any expectations or requirements to establish a policy on freedom of association and collective bargaining.

The company reports having 3,377 permanent employees and 3,125 part-time employees represented by 14 trade unions. However, it does not disclose the specifics of collective bargaining agreements or if these agreements are extended to all employees. Additionally, the company states that 9,226 employees are permanently employed and 3,085 are subcontracted, but it does not specify the breakdown of full-time, part-time, or hourly paid workers.

The company confirms that all its processing plants are certified under HACCP Systems or Quality Management Systems (ISO) and GFSI Food Safety Management Systems, including FSSC 22000, ISO 22000, and ISO/TS 22002-1:2009. It pre-screens suppliers to ensure adherence to local quality standards but does not require them to hold GFSI certifications, nor does it disclose the proportion of suppliers with such certifications.

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 conducts traceability and product recall exercises, and has product recall insurance. However, it does not detail the product recall system, including protocols, roles, documentation, disposal procedures, key personnel, or communication plans. Additionally, the number of recalls during the reporting period is not disclosed.

The company does not disclose information on market bans or recalls for the reporting year, nor were any detected in media screenings.

The company has established Social and Ethics and ESG Committees, consisting of board members, to oversee activities related to sustainability, the environment, health, and public safety, including sustainability reporting. Its integrated report addresses material issues for stakeholders, covering topics such as biosecurity, infrastructure constraints for water and electricity, raw material availability and pricing, food safety, and poultry supply-demand imbalance. However, the board's involvement in the materiality assessment is unclear. One non-executive director possesses experience in managing environmental authorisations, water rights, water use licences, land acquisitions, and land use planning. Additionally, a member of the executive management team has expertise in food safety. However, none of the board members has expertise in product development and innovation.

The company provides details of its executive pay policy, which includes a Long-Term Retention Plan (LRP) based on performance targets over a three-year period. ESG performance criteria, such as animal welfare and environmental impact, account for 10% of the LRP. The company does not disclose engagement with public policy officials or associations on ESG issues and does not reveal memberships with trade associations, alliances, and coalitions. It also lacks a disclosed commitment to align its policy-engagement activities with the goal of limiting global temperature rise to 1.5⁰C.

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. 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.