Cal-Maine Foods Inc

The company is considering adopting Science-Based Targets (SBTs) using guidance from the SBTi FLAG project for agriculture-specific GHG standards. Nonetheless, it currently lacks a science-based emission reduction target.

The company is a US-based producer and distributor of shell eggs. It reveals extensive operational facilities, including feed mills, breeding and hatcheries, pullet and egg production sites, egg processing plants, and distribution centres. The company is committed to optimising energy use, improving manure management, and minimising environmental impact. However, it does not currently have emission reduction targets but plans to introduce one within the next two years. While most feed ingredients are purchased from suppliers, contributing to Scope 3 emissions, the company has not disclosed specific targets for reducing these 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 discloses Scope 1 emissions of 151,109 tCO2e and market-based Scope 2 emissions of 91,618 tCO2e for FY2023. It has conducted an initial screening of Scope 3 emissions and plans to offer more detailed information in future reports.

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 responded to the CDP Climate Change questionnaire in 2023. Its CDP Climate Change Report 2023 reveals that Scope 1, 2, and 3 GHG emissions are not externally verified by a third party.

The company does not disclose any information on its emission performance. The company does not disclose a quantitative decrease in emissions arising from feed, enteric fermentation, or manure management.

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

The company recognises that physical risks such as derechos, fires, floods, tornadoes, and hurricanes may negatively impact its operations and increase supplier costs for feed ingredients, thereby affecting efficiency. However, it does not detail specific strategies to mitigate or adapt to these risks. Furthermore, the company notes that climate change could subject animals to intense heat and humidity, affecting poultry production, yet it fails to provide plans for adapting to high temperatures' impact on livestock. It has introduced in-house veterinarians to senior management to improve veterinary care but does not disclose costs related to veterinary services and medicine in the context of climate change. The company acknowledges that weak economic conditions, including high inflation and interest rates, may elevate energy costs and limit energy supplies, without addressing climate change-related energy cost increases. Additionally, the company indicates that its facilities, as well as those of other egg producers, have previously been impacted by extreme weather events but does not disclose the number of financially material climate risk incidents during the reporting period. Lastly, the company does not address potential risks associated with a carbon tax on electricity or animal protein.

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 responded to the CDP Forests Questionnaire in 2023, but the information is not publicly available.

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 expresses its commitment to improving water source supplies as part of its water stewardship efforts. It plans to assess operational freshwater use in water-stressed regions, although there is no confirmation of a completed risk assessment for its processing facilities, which reportedly operate in low-water stress areas. The company reports a blue water footprint of 5,449,850 m3 for FY2023, utilising freshwater for animal health and welfare, shell egg processing, equipment maintenance, and irrigation. It aims to enhance its understanding and measurement of freshwater use, to support future water efficiency practices. However, it does not provide details on specific water-saving measures for the current reporting period.

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

In FY2023, the company reported a total freshwater use of 5,449,850 m³, a decrease from the estimated 5,495,400 m³ used in FY2022. While it sources freshwater from municipal supplies and groundwater wells, it does not provide a detailed breakdown of these sources. The company plans to assess its operational freshwater use in water-scarce regions and explore additional measures for evaluating activity percentages in high or extremely high water stress areas. However, it does not currently disclose water withdrawals or consumption by water stress level. The company submitted a 2023 CDP Water Security response, but this is not publicly available. It also does not disclose water-related CAPEX, OPEX, or indicate if its data is third-party audited.

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 produced or sourced in water-stressed areas. It does not disclose information addressing water scarcity in its animal supply chain, nor does it discuss guidance it offers to animal farmers/suppliers on water usage.

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

The company is involved in a significant pollution case regarding the disposal of chicken litter in the Illinois River Watershed. In January 2023, a court ruled in favour of the State of Oklahoma, holding the company liable for pollution, although no penalties were imposed. The case is ongoing, with potential remedies still under discussion. The company reports total freshwater usage of 5,449,850 cubic meters for FY2023 and is exploring methods to gauge water withdrawal and usage in regions of high or extremely high baseline water stress, with plans to report future progress. However, it has not identified processing facilities in locations with high or medium water stress from a quality standpoint. Additionally, the company has not disclosed wastewater quality targets for key pollutants in accordance with global standards such as the World Bank’s guidelines, nor has it set a target for reducing wastewater discharge volume.

The company submitted its 2023 Water Security response to CDP, but its score remains unavailable. It has not set or disclosed wastewater discharge quality metrics, such as BOD, COD, or nitrogen concentrations, nor does it disclose the volume of wastewater discharged. Additionally, its wastewater discharge data lacks third-party verification.

The company does not disclose having improved the wastewater quality at the aggregate level compared to the previous reporting period or reduced the volume of wastewater discharged.

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 considers manure a valuable resource and manages 100% of dry manure at facilities needing nutrient management plans to support waste diversion. However, there is no mention of converting manure into biogas or undertaking advanced treatments. Additionally, the company does not conduct risk assessments to identify high-risk locations concerning pollution or nutrient management.

The company implements nutrient management plans (NMPs) across its Concentrated Animal Feeding Operations (CAFOs) to meet regulatory requirements, such as the Environmental Protection Agency's (EPA) National Pollutant Discharge Elimination System (NPDES) permitting. Manure is used as fertiliser according to agronomic rates or transferred to third parties for reuse. However, the company does not disclose a verification process for these plans, limiting transparency regarding their enforcement. Additionally, it does not provide technical or financial support to suppliers or its own farms for developing nutrient management plans or improving 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 adheres to a protocol for antibiotic use, ensuring they are administered only when medically necessary and under veterinary supervision. It prohibits the use of antibiotics for growth promotion or performance enhancement in accordance with FDA guidelines, applying this policy across all operations and covering all medically important antibiotics. To reduce reliance on antibiotics, the company implements measures such as biosecurity, vaccination programmes, and animal welfare initiatives. It monitors bird health in partnership with government agencies and strengthens veterinary care with an in-house veterinarian. Additionally, the company follows rigorous animal welfare protocols, continuously reviewing and improving them, and conducts regular audits to ensure compliance.

The company reveals that less than 1% of its poultry feed contained a medically important antibiotic over the last three reporting periods. However, it does not report any reduction in the percentage of animals treated or in the quantity used per ton of product compared to previous periods. The company does not provide specific reasons for its antibiotic usage during the reporting period or confirm third-party auditing of its antibiotic usage data.

The company aligns its Animal Welfare Program (AWP) with the internationally recognised Five Freedoms of Animal Welfare, ensuring consistent welfare standards across all operations and animal life stages. Continuous improvement is supported through regular reviews, internal audits, and third-party certifications. Employee training is a core component of the program, encompassing best practices in animal welfare with sessions conducted in-person, via video, and hands-on, available in multiple languages. Training content is regularly updated to reflect evolving standards. The company addresses animal welfare breaches through its Animal Welfare Hotline and investigative protocols, though it does not disclose specific disciplinary measures for policy violations. Demonstrating leadership in animal welfare, the company participates in collaborative initiatives with organisations such as the United Egg Producers (UEP) and engages in industry focus groups. It also collaborates with government agencies to develop proactive measures, like monitoring highly pathogenic avian influenza (HPAI), to safeguard bird health.

The company has committed to transitioning to cage-free systems due to customer demand and state mandates, with 29.5% of net shell egg sales in FY2024 being cage-free. However, it does not explicitly commit to preventing close confinement across all operations or to avoiding routine mutilation, although it acknowledges selective beak management practices. The company prioritises proper handling, thermal control, and stress minimisation during transport, including using dual-driver staffing to reduce stops. However, it does not commit to a specific transportation time limit. It discloses humane euthanasia practices for specific situations, such as culling and end-of-life care, though it is unclear if this extends to routine slaughter operations. The company provides enriched environments, such as perches, nest pads, and scratch areas, for cage-free birds to promote natural behaviours. However, these measures appear limited to cage-free production, with conventional flocks managed under United Egg Producers (UEP) space requirements without further enrichment mentioned. The company selects higher-welfare breeds, specifically highlighting the white Leghorn, to enhance animal health and well-being in its housing environments.

The company reports that all 42 facilities audited in fiscal year 2023 achieved certifications from United Egg Producers (UEP), American Humane, and Humane Farm Animal Care (Certified Humane). Its laying hen and egg operations are certified under these farm assurance and animal welfare programmes.

The company reports fluctuations in cage-free egg sales over the past three years. Cage-free eggs accounted for 22.1% of net shell egg sales in FY2022, declined to 20.1% in FY2023, and then increased to 29.5% in FY2024.

The company is investing in expanding facilities for cage-free production, which comprised 29.1% of sales in FY2024. Its cage-free strategy includes maintaining proper air quality, lighting, and thermal conditions, along with providing perches, nest pads, and scratching areas. For conventional flocks, it adheres to UEP space requirements but does not disclose hen density metrics or the use of nest boxes.

The company discloses a Board-approved human rights statement, aligning its approach with the United Nations Guiding Principles on Business and Human Rights and the Universal Declaration of Human Rights. However, it is unclear whether the company fully commits to all these internationally recognised principles or selects only specific elements.

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 states that it prohibits discrimination, harassment, child labour, and forced labour and commits to fair wages but lacks a commitment to align wages with the cost of living. It expects suppliers to uphold high human rights standards but does not explicitly require them to prohibit inhumane treatment, discrimination, child and forced labour, or to promote fair wages. Additionally, there is no indication that the company monitors compliance with its policies in direct operations through audits, nor does it provide information on sick pay for its workers.

The company has implemented a grievance reporting system for its employees, offering anonymity and multiple escalation channels, including an anonymous hotline. However, it does not disclose whether these mechanisms were developed in consultation with stakeholders like employees or unions, nor whether the system is available to suppliers. Additionally, the company does not report the number of grievances received for FY2023.

The company prioritises safety and well-being by maintaining secure, clean, and healthy work environments. It is supported by over 170 OSHA 30-hour certified staff and 44 local compliance managers who oversee training, accident records, and monthly inspections. However, it is unclear if the company holds any health and safety certifications. An enterprise safety committee, consisting of two corporate safety managers, nine area compliance managers, and 55 local compliance managers, regularly reviews policies, updates on OSHA standards, and incident outcomes to enhance health and safety practices. Despite this, the company does not disclose the percentage of facilities with health and safety committees that include worker representatives. The company also lacks disclosure on antimicrobial resistance risks for its workforce.

The company reports a decrease in its total recordable incident rate per 200,000 working hours from 2.8% in FY2022 to 2.6% in FY2023. It maintained a zero fatality rate across 2021, 2022, and 2023. Additionally, the company does not disclose turnover rates.

The company respects employees' right to freedom of association but does not disclose the unionisation rate or describe measures taken to support these rights. Additionally, it does not require or expect suppliers to establish a policy on freedom of association and collective bargaining.

As of June 2024, the company reports having no employees under collective bargaining agreements. Of its 3,067 employees, 4.5% work part-time. The company also utilises an average of 1,962 contingent workers monthly for fiscal 2024. Additionally, 76% of employees are paid by the hour.

The company maintains 100% SQF certification for all processing facilities, recognised by the Global Food Safety Initiative (GSFI), and requires its suppliers to comply with these standards. In FY2021, FY2022, and FY2023, less than one percent of finished egg sales were to customers without certification requirements. Further details are available in the company's 2021 Sustainability Report.

The company reports a SQF audit major non-conformance rate of 0.00 and a minor non-conformance rate of 0.095, with 4 minor non-conformances identified across 42 audited facilities in FY2023. It has achieved a 100% corrective action rate for minor non-conformances, successfully implementing all corrective action plans within the timeframe accepted by SQF auditors. The company has a robust product identification system for tracking inputs at each stage for its finished eggs. However, it has not disclosed any implementation or development of consumer-facing technology for food safety.

The company conducts semi-annual mock recalls to assess recall readiness and product segregation. However, its disclosures do not provide comprehensive details on documentation, disposal procedures, or a complete recall protocol. The company reported no voluntary or involuntary product recalls in FY2023.

The company is unaware of any market bans outside the US and does not disclose any such incidents for the reporting year. Furthermore, no market bans were detected in media screening.

The company states that its Board offers strategic direction and operational oversight for sustainability, influencing the sustainability strategy. It does not disclose conducting or reviewing a materiality assessment in FY2023. According to the Board skills matrix, four members have expertise in sustainability governance. The president and CEO, who has served on the Board since 2012, is noted as an expert in food safety. Additionally, three Board members have experience in product quality and innovation.

The company discloses to CDP that it does not offer incentives for managing climate-related issues or for meeting other ESG-related performance targets. The company is committed to advancing sustainability dialogues in the poultry industry by engaging with trade groups, policymakers, and other stakeholders. Its representatives participate in industry discussions on workplace safety, safe food practices, climate resilience, and animal welfare. Although the company is a member of the US Roundtable for Sustainable Poultry & Eggs, it does not provide a complete list of its involvement with trade associations, alliances, and coalitions. Additionally, it has not disclosed a commitment to aligning its policy engagement activities with the goal of limiting global temperature rise to 1.5⁰C but is developing a protocol to align its engagements and commitments through an environmental policy.

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.