Emmi AG

The company has set validated targets through the SBTi to reduce absolute Scope 1 and 2 emissions by 45% and Scope 3 emissions by 25% per kg of raw milk by 2027, using 2019 as a baseline. Its 2023 Annual Report, however, specifies a 60% reduction in Scope 1 and 2 emissions by 2027, based on a 2014 baseline. The company reports that 97% of its total emissions are Scope 3, primarily due to methane from cow digestion, but it does not specify a methane reduction target. Despite being a Business Ambition for 1.5°C campaign member, it has retracted its long-term net-zero commitment. Nonetheless, it intends to extend CO2 reduction targets across its entire value chain and pursue a net-zero trajectory.

The company commits to reducing Scope 1 and 2 emissions by 45% and Scope 3 emissions by 25% per kilogram of milk by 2027. These targets, validated by the Science Based Targets initiative (SBTi), align with the 1.5-degree pathway and encompass all global operations. In 2021, the company's net-zero commitments were removed from the SBTi website. Nonetheless, its 2023 Annual Report indicates a pursuit of science-based reduction targets along the entire value chain, consistent with its netZERO 2050 vision. It outlines a CO2 reduction path with interim targets as a guiding principle. However, the company has not explicitly confirmed its commitment to setting a Net Zero target for validation by SBTi.

The company aims to achieve its Scope 3 target in Switzerland by early 2024 through the "Sustainable Swiss Milk" industry standard. It initiated an evaluation of a suitable tool for collecting farm emissions data in autumn 2023. Outside Switzerland, the company seeks joint commitments within the sector and individual agreements with milk suppliers. The climate-related criteria encompass GHG emissions per kg of milk, measures for emissions reduction and carbon storage, renewable energy generation, and energy efficiency. Assessments based on these criteria will set improvement targets for 2027 with individual companies. Several Scope 3 initiatives are highlighted, including a pilot supplier engagement project in Brazil, the Klimatisch initiative, and the 'KlimaStaR Milk' climate protection project, developed with Nestlé, Aaremilch, and the Central Switzerland Milk Producers Cooperative. The company collaborates with 230 farms to reduce emissions and feed-food competition. Through tailored advice, sustainable farming practices, and renewable energy use, emissions have been reduced by 4.9% and feed-food competition by 19.7%. The initiative also includes a network of 30 experts from 15 organisations to promote best practices throughout the supply chain.

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.

In the reporting year, the company discloses emissions data as follows: Scope 1 totalled 95,805 tCO2e, Scope 2 (market-based) totalled 3,114 tCO2e, Scope 2 (location-based) totalled 48,314 tCO2e, and Scope 3 totalled 5,497,744 tCO2e.

The company reports that emissions related to milk and purchased dairy products account for 4,593,253 tCO2e, which is 84% of its Scope 3 emissions. It also reports Scope 3 emissions of 4,786,008 tCO2e from purchased goods and services, without specifying amounts from feed production, though it confirms that these emissions include the cultivation of animal feed. The company does not disclose GHG emissions from land-use changes.

In 2023, the company completed the CDP Climate Change questionnaire and received a "B" rating, though its reports are not publicly accessible. While KPMG audits the financial statements, the company's greenhouse gas inventory data is not subjected to third-party auditing.

The company discloses its Scope 1, 2, and 3 emissions. For FY2023, total greenhouse gas emissions increased by 2.5% to 5,644,977 tCO2e, compared to 5,508,390 tCO2e in FY2022. Over a longer period from FY2021 to FY2023, there was a 1% decrease from 5,703,161 to 5,644,977 tCO2e, reflecting an average annual decrease of 0.5%. For the reported period, the company recorded Scope 1 emissions of 95,805 tCO2e, Scope 2 emissions of 3,114 tCO2e (market-based) and 48,314 tCO2e (location-based), alongside Scope 3 emissions of 5,497,744 tCO2e. The company does not disclose reductions in absolute methane emissions.

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

The company's environmental risk analysis indicates that climate change and extreme weather, such as drought or heavy rainfall, affect feed availability and cost, thereby impacting milk quality and price. Water shortages also affect non-dairy ingredients like fruit, coffee beans, and nuts. While the company mentions initiatives to address food competition, it does not outline how it plans to mitigate or adapt to the projected physical risks of climate impact on feed ingredient availability and price volatility. The analysis highlights significant challenges related to energy supply. Recent rises in electricity, natural gas, and crude oil prices have increased production costs. Although the risk of supply rationing has decreased, concerns remain about potential short-term disruptions in electricity and gas supplies. The company mitigates these risks through strategic energy sourcing, efficiency improvements, robust business continuity planning, and adjusting pricing strategies as needed. The company does not address the effects of rising temperatures and variability on animal productivity and mortality, the projected impacts of increased veterinary and medicine costs, or the risks of a carbon tax on electricity and animal protein. Furthermore, it does not disclose the number of financially significant events due to 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 discloses that all soy used as feed in its Swiss operations complies with the "Swiss Milk Green" industry standard. In 2022, 55% of the milk processed originated from outside Switzerland. The company aims for all global milk suppliers to meet or exceed local industry standards, such as "Swiss Milk Green," by 2027, highlighting its commitment to responsible and sustainable sourcing practices.

The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.

The company's supplier code of conduct requires the prevention of deforestation, land use changes, and destruction of natural habitats, though it does not explicitly mention soy. It is a member of the Soy Network Switzerland, promoting responsible cultivation and sustainable procurement of soy used in feed. However, there is no clarity on its support to suppliers through this network, and it does not disclose information on suppliers for soy used outside its Swiss operations.

The company sources certified soy through schemes like ProTerra and RTRS, but this is limited to its Swiss operations. It maintains indirect traceability of its soy suppliers via the Soy Network Switzerland, also restricted to Switzerland. The company does not address procedures for handling non-compliance.

The company, as a member of the Soy Network Switzerland, sources 97% of its soy from European origins, thereby reducing the deforestation risk associated with soy sourcing. However, it does not provide additional details.

In 2019, the company employed the WWF Water Risk Filter across all production sites to identify areas of water risk, based on twelve criteria. This analysis showed that facilities in Tunisia, California, and Mexico are located in risk areas. However, as the company has not conducted a water risk assessment in the last three years, it has not earned points from FAIRR due to potentially outdated findings. The company acknowledges that the majority of its water footprint stems from agricultural raw material production. With the WWF's assistance, it has devised a strategy to manage water for high-risk commodities, initially by minimising freshwater use within its own facilities through reuse, optimising cleaning processes, and advanced wastewater treatments. It monitors the effectiveness of key indicators quarterly, aiding in the development of site-specific plans and conducts regular inspections to identify and fix water leaks. For FY2023, the company reports its water consumption as 7,182,686 m3.

The company aims to reduce water consumption by 15% in non-risk areas and 50% in risk areas by 2027, using 2019 as the baseline. However, it reports a 4% increase in water consumption in non-risk areas and a 12% increase in risk areas for the reporting year. These targets are limited to saleable goods production in tonnes. Additionally, the company has not set a time-bound target for reducing total water withdrawals at its facilities during the reporting year.

The company reports a total water withdrawal of 7,182,686 m3 for FY2023, with 1,052,612 m3 from water-stressed areas and 6,130,074 m3 from non-stressed areas. This represents a reduction from 7,229,862 m3 in FY2022. However, it does not disclose withdrawals or consumption by source. While KPMG audits the company's financial statements, no third-party verification of water-related data is disclosed. The company did not respond to the 2023 CDP Water Security survey, resulting in an F score. The company does not disclose water-related capital expenditure (CAPEX) or operational expenditure (OPEX).

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 discloses that some subsidiaries and their milk producers operate in water-risk areas, but it does not reveal the proportion of animal protein commodities sourced from water-stressed regions. Water-impact aspects of milk production are included in its sustainability approach, though it does not produce its own milk. In its 2023 Annual Report, the company includes water criteria for foreign milk suppliers, focusing on protecting open waters and groundwater, supported by its supplier code of conduct. However, a sustainable agricultural policy specifically addressing water use in animal farming supply chains is absent. The company is prioritising water use reduction within its own operations and aims to collaborate with suppliers to reduce water consumption by 2027, with longer-term targets to follow. A dairy farmer engagement case study discloses support for around 1,800 small farmers through its subsidiary in Tunisia, aiming to extend help to an additional 400 farmers by the end of 2024, in partnership with the Swiss Agency for Development and Cooperation. Emmi Roth USA is strengthening supplier relationships with sustainability criteria in tenders for milk suppliers and supporting the Dairy Sustainability Alliance, though water use is not specifically addressed in these initiatives.

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

The company does not identify facilities that operate in locations with high and medium water stress from a quality perspective. It has not set a quality or volume target for wastewater, nor does it report the number of instances of non-compliance with water quality permits, standards, and regulations.

The company does not disclose the quality or volume of wastewater discharge. No evidence was found that wastewater-related data has been audited, and the company did not respond to the CDP Water Questionnaire in 2022.

The company converts organic waste from production plants into animal feed and biogas, specifically from milk processing by-products rather than manure. It faces challenges recycling waste at its North American and Tunisian operations, indicating a limited geographic scope for such efforts. The company does not disclose improvements in wastewater quality or reductions in the volume of wastewater discharged compared to the previous reporting period.

The company mandates in its code of conduct that suppliers must commit to biodiversity conservation, soil protection, avoid hazardous substance releases, minimise waste, and respect planetary boundaries. In Switzerland, 99% of cow milk processed by the company is certified under the "Swiss Milk Green" programme as "Sustainable Swiss Milk." This certification requires compliance with the "Ökologische Leistungsnachweis (ÖLN)" policy, covering sustainable agriculture practices like animal welfare, balanced fertiliser use, and soil conservation. However, this certification appears limited to Swiss operations. The company does not provide comprehensive guidance, support, or incentives for suppliers in nutrient management or fertiliser use in crop production. Additionally, it does not establish partnerships with third parties to enhance its sourcing or farming strategy regarding nutrient pollution or fertiliser use.

The company implements the Ökologischer Leistungsnachweis (OLN) Swiss standard for its Swiss suppliers, requiring controlled crop rotation and suitable soil protection. However, it does not disclose information regarding pesticide use in its feed supply chain.

The company does not outline processes for manure management, conversion to biogas, or sustainable slurry application. Additionally, it has not specifically identified farms located in areas at high risk of nutrient pollution.

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 offers antibiotic-free brands that adhere to Bio Suisse, Demeter, and National Organic Program (NOP) standards, which prohibit preventative antibiotic use and hormone administration for growth. However, it lacks a formal antibiotics policy detailing conditions for antibiotic use. The company reduces antibiotic need through regular veterinary checks, improved feeding practices, and adherence to high animal welfare standards set by Bio Suisse and Demeter. Initiatives, including the KlimaStaR Milk project, collaborations with herd medicine experts, and commitment to the "swissmilk green" standard, further support animal welfare and health, minimising antibiotic use.

The company does not disclose the quantity of antibiotics used.

The company supports the Five Freedoms, highlighting its commitment to animal welfare through programmes like RAUS and BTS, which focus on regular pasture access and animal-friendly husbandry. As part of the "Sustainable Swiss Milk" industry standard, the company implements high welfare practices, including adequate housing, optimised feed rations, and restricted transport times to slaughterhouses. It mandates agricultural training for milk producers with over ten livestock units and collaborates with the Bern University of Applied Sciences and WWF to develop criteria to enhance animal welfare. Emmi has also conducted a sustainability analysis with Quillayes Surlat, setting goals for animal welfare and waste management. The company strictly adheres to its Supplier Code of Conduct, encompassing animal welfare policies. Breaches of this code are addressed by an internal committee comprising Procurement, Sustainability, Quality, and Legal representatives, primarily focusing on supplier development. Persistent issues may lead to termination of the supplier relationship. Demonstrating leadership in animal welfare, the company collaborates on a comprehensive sustainability assessment for milk production, evaluating 32 factors and adapting to scientific insights. Participation in the KlimaStaR Milk project further underscores its commitment to climate protection and resource efficiency in milk production.

The company demonstrates a commitment to animal welfare by avoiding close confinement, ensuring dairy cows have regular pasture access and adequate housing. It ensures 99% of milk processed meets the "swissmilk green" standard, with 82% of dairy cows participating in the RAUS programme (regular pasture access) and 41% in BTS-compliant (animal-friendly) housing. These initiatives promote natural behaviours and reduce stress from confinement. The company processes milk from Demeter-certified farms, where cows must have horns, and offers Demeter-certified brands. It sources milk from the Mettmenstetten region, known for raising horned cattle. Tail docking is banned in goat and sheep farming. However, there is no company-wide policy to avoid routine animal mutilation, and Demeter standards are region-specific. The company complies with Swiss animal welfare laws during transport, ensuring animals are unharmed with gentle driving conditions and a maximum duration of eight hours. It follows the Swiss Animal Protection Ordinance, mandating that vertebrates and crustaceans are only killed after being stunned to ensure they are insensible and unconscious without pain before slaughter. Swiss welfare standards are adhered to for dairy cows, providing enriched environments through the RAUS and BTS programmes, encouraging natural behaviours and positive emotional states. Furthermore, the company avoids harmful breeding practices, ensuring the health of animals by excluding breeds with traits that cause anatomical or metabolic harm.

The company’s operations are certified under the "swissmilk green" production standard, ensuring high levels of animal welfare, feeding, sustainability, and social criteria. Since its introduction in September 2019, 99% of the company’s milk in Switzerland meets this standard, with nearly 90% of cows in the RAUS program and over half in BTS-compliant housing. Globally, the company extends its commitment to sustainability, with subsidiaries in the USA and Brazil prioritising sustainable practices, while a foundation in Tunisia supports sustainable farming initiatives. This demonstrates a consistent global implementation of farm assurance and animal welfare standards. In September 2019, the Sustainable Swiss Milk programme was established, certifying the company’s dairy operations for sustainable production, with the standard becoming mandatory for all Swiss milk production by 2024.

The company reports annually on its animal welfare progress and complies with Swiss animal welfare legislation. It participates in initiatives like RAUS and BTS, providing dairy cows with regular outdoor access and enriched living conditions. Metrics indicate that 82% of dairy cows are under the RAUS programme and approximately 41% in BTS. Additionally, 99% of milk processed meets the "swissmilk green" standard.

The company adheres to high animal welfare standards through the "swissmilk green" standard and the RAUS and BTS programs, ensuring pasture access and proper housing in accordance with Swiss regulations. However, it does not provide specific metrics on lameness, mastitis, or bedding practices. By adopting the Sustainable Swiss Milk standard, the company further addresses welfare risks by prohibiting tethering and adhering to strict conditions.

The company adheres to the UN Guiding Principles on Business and Human Rights and has released a Modern Slavery Statement addressing human rights violations, including modern slavery and trafficking, within its operations and supply chain.

The company requires all suppliers to commit to protecting workers' rights globally and employs a risk management strategy that includes supply chain mapping, supplier risk assessments, and targeted research in high-risk geographies. However, it does not disclose a due diligence process for its own operations. The company has a human rights risk management process for its supply chain and mentions an Expert Committee that decides on actions in cases of human rights violations. However, details of the committee's processes and potential actions are unclear. Additionally, the company does not disclose how it monitors human rights risks or mitigates risks and remediates affected people or communities in its operations.

The company states that its supplier review process identified 11 high-risk suppliers concerning child labour. Audits did not substantiate these suspected risks. However, the company does not specify the locations or nature of these risks outside of the countries identified. Additionally, it does not provide evidence of remediation for human rights risks or preventive measures if no risks were found.

The company prohibits child labour, forced labour, discrimination, and abuse, focusing on these in its human rights policies and due diligence processes. While it claims to offer fair salaries, it does not commit to paying wages in line with the cost of living or require the same of its suppliers. Moreover, the company conducted internal audits for child labour during the reporting year, but it is unclear how many locations were audited or if other policies were examined. It also does not disclose whether it provides sick pay to all employees.

The company states that suppliers must allow it the right to audit, but it is unclear if audits are actually conducted. The company promotes the reporting of human rights violations via an anonymous hotline, ensuring confidentiality for employees, suppliers, and business partners. The whistleblowing hotline is disclosed as accessible to suppliers and business partners. In 2023, the company received 54 whistleblower reports but does not categorise them.

The company prioritises a safe working environment for its employees and those under its supervision. It reports that its international subsidiaries, including units in Italy, Spain, and Tunisia, are certified according to ISO 45001 standards, albeit covering a limited number of production sites. However, the company has not disclosed the presence of occupational safety committees at its facilities, nor has it assessed or addressed antimicrobial resistance risk for its workforce.

The company reports a decrease in its Total Incident Frequency Rate from 24.4 in 2022 to 24.0 in FY2023. It also records zero fatalities for both years. The employee turnover rate is 24% for the reporting period, though details by seniority level are not provided.

The company indicates support for freedom of association and notes unionisation in its subsidiaries in Brazil, Chile, Spain, and Tunisia, but it does not disclose specific unionisation rates. The company requires its suppliers to respect employees' freedom of association, aligning with ILO Convention C87 on the right to join organisations and engage in collective bargaining. However, its Annual Report specifies that this is an expectation, not a mandatory requirement. The company does not describe measures taken to support these rights.

The company reports 43% of its employees were covered under collective bargaining agreements in 2023, primarily in certain unionised countries, with none in Switzerland. During the reporting period, the company employed 8,598 full-time and 698 part-time workers, including 8,929 permanent and 367 temporary employees, as well as 1,095 apprentices, interns, trainees, and external employees.

The company has its facilities certified under GFSI-recognised schemes, including FSSC 22000 and IFS, and requires suppliers to adhere to similar standards. However, it does not disclose the proportion of suppliers with GFSI certification. Certification such as FSSC 22000, IFS, or BRC is mandatory for suppliers, who must provide certified proof of compliance. Quality management standards, recognised by GFSI, are applied based on market or customer requirements.

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 acknowledges the importance of food safety and potential impacts of recalls but does not explicitly disclose detailed recall protocols, roles, or procedures. Furthermore, it does not disclose whether any recalls occurred during the reporting period.

The company does not disclose information on recalls or market bans for the reporting year, and none were detected in media screenings.

The company assigns ultimate responsibility for its sustainability strategy to the Board of Directors, with operational duties handled by the Sustainability Steering Committee and Sustainability Officers. A double materiality analysis identified 16 key issues from financial and impact perspectives, including emissions reduction, water and waste management, food waste, packaging, and employee development. It is unclear if the Board of Directors was involved in this assessment. The company reveals that one board member, Nadja Lang, has expertise in ESG, and 44% of board members are competent in ESG matters. However, the board lacks members with expertise in food safety, product development, and innovation.

Sustainability issues are incorporated into the remuneration for the company's Chief Supply Chain Officer and Chief Human Resources Officer. However, the specific sustainability targets and the proportion of their remuneration linked to these are not disclosed. The company engages with public policy officials and trade associations on matters such as clean energy, climate issues, and responsible antibiotic use. It provides a complete list of its memberships, including industry groups like the International Cheese Council of Canada, the Association of the German Dairy Industry, and the American Dairy Goat Association. The company has not disclosed any commitment to align its policy engagement activities with the goal of limiting global temperature rise to 1.5°C.

The company focuses on innovation at both the group and subsidiary levels, emphasising sustainability within its strategy. Its primary objectives include reducing greenhouse gas emissions, minimising waste, and promoting digitisation. It also aims to innovate in niche markets, such as its alternative plant-based dairy products. While the company aspires to become an industry benchmark in certain areas, it does not disclose how it measures its performance in sustainability and innovation against its peers.

The company acknowledges both opportunities and risks from the trend towards plant-based diets, driven by consumer climate concerns. It suggests that offering alternative products may not only prevent negative impacts but also create new business opportunities. However, the company could improve by elaborating on how protein diversification serves as a risk mitigation tool. In 2023, the company reported a decline in sales of plant-based milk alternatives due to challenging market conditions but does not disclose revenue from alternative protein sources. Additionally, it has not set a time-bound target for diversifying protein sources.

The company has been involved in vegan dairy substitutes for over 20 years and currently offers plant-based milks and cheeses through its Beleaf and Begetal brands. These products are produced in Switzerland, Spain, Austria, Italy, and the USA. Beleaf has made significant progress in Switzerland, attracting consumers with a new design and improved recipe using certified Swiss oats. In Spain, Begetal's retail presence has also increased with a new design. However, the company does not confirm any investment in the future growth of alternative proteins through R&D, venture investments, or collaboration with external partners.