Hormel Foods Corp

The company has SBTi-approved emissions-reduction goals aligned with a 1.5°C scenario, targeting a 50% reduction in absolute Scope 1 and 2 emissions and a 27.5% reduction in absolute Scope 3 emissions by 2030, both from a 2019 baseline. However, it does not have a specific methane emission reduction target, nor is it developing one.

The company has a Science Based Targets initiative (SBTi) approved goal to reduce absolute Scope 1 and 2 emissions by 50% and Scope 3 emissions by 27.5% by 2030, based on a 2019 baseline. However, it has not committed to setting a Net Zero Target for SBTi validation.

The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.

The company has completed its second cropping year of the EcoHarvest regenerative agriculture project in Minnesota, coordinated with the Ecosystem Services Market Consortium (ESMC) and The Nature Conservancy (TNC). This initiative aids farmers in adopting sustainable practices across 50,000 acres and is part of an effort to develop a national agricultural carbon and water credit marketplace. The company intends to participate in the programme for an additional year to further promote sustainable agriculture adoption. It is encouraged to provide more detailed information on regenerative practices that help 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 FY2023 emissions as 625,338 tCO2e for Scope 1, with Scope 2 emissions being 437,394 tCO2e (location-based) and 40,770 tCO2e (market-based). It is currently updating Scope 3 emissions calculations and will disclose these in its next CDP Climate response.

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 questionnaire in 2023 but has not disclosed whether its GHG inventory data has been audited by a third party.

The company reports a 1.59% decrease in total (Scope 1 and 2) location-based emissions and a 1.25% increase in market-based emissions from 2022 to 2023. For FY2023, Scope 1 emissions are 625,338 tCO2e, Scope 2 (location-based) emissions are 437,394 tCO2e, and Scope 2 (market-based) emissions are 40,770 tCO2e. However, the company does not disclose Scope 3 emissions, leading to an incomplete GHG inventory. Additionally, no quantitative decrease in emissions from feed, enteric fermentation, or manure management is disclosed.

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

The company acknowledges several climate-related risks but does not fully address all aspects. It discloses that turkey operations are affected by the cost and supply of feed grains, which fluctuate due to climate conditions and other market factors. The company attempts to manage exposure to feed price fluctuations through forward buying, futures contracts, and pricing advances. However, it notes that these strategies may not suffice in the face of sustained market price increases. The company mentions that global climate change may increase the risk of disease due to changes in weather or migratory patterns, which could lead to more frequent or severe disease outbreaks. These outbreaks could also affect the company's ability to market and sell products. However, it does not explicitly address the impact of temperature increases on heat stress and animal mortality, nor does it provide information on increased veterinary and medicine costs. Energy availability and expenses are recognised as potential risks, but the company does not state any specific measures to address these issues. Additionally, the company does not discuss risks associated with carbon taxation on electricity or animal protein. The company does not disclose the number of financially material events resulting from climate risks during the reporting period.

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

The company reports that 40-60% of its revenue relies on soy, which it evaluates as low risk primarily due to domestic sourcing from the US. However, it has not disclosed the exact percentage sourced from the US, nor confirmed if all soy is obtained from deforestation-free suppliers or regions. While the company has conducted a thorough assessment of its soy supply, it does not clarify whether any non-US sourcing locations are considered high risk.

The company does not disclose having a deforestation/conversion-free target for soy.

The company discloses information to CDP Forests 2023.

The company sources cattle from Australia, Brazil, Canada, Mexico, the United States, and Uruguay, some of which are high-risk deforestation areas. While it conducts an annual assessment of forest-related risks in its cattle supply chain, it does not disclose details on the specific high-risk locations identified.

In its CDP Forests 2023 report, the company states that it aims for 100% of its direct beef suppliers to have public, time-bound action plans aligned with the Global Roundtable for Sustainable Beef by 2025. Currently, 90% of its suppliers meet this target.

The company responded to the CDP Forests questionnaire in 2023.

The company's supplier code of conduct requires suppliers to comply with deforestation laws and avoid sourcing deforestation-related products, such as beef, cocoa, palm oil, and soy, from high-risk areas. However, the company does not disclose whether it supports soy producers in promoting deforestation-free production or enhancing traceability efforts.

The company requires suppliers who violate its code of conduct to implement corrective actions and reserves the right to cease trading if these actions are not taken. The code mandates adherence to deforestation laws and expects suppliers to avoid sourcing soy from high-risk deforestation areas. The company has conducted a high-level evaluation of its soy supply and states that it sources primarily from low-risk areas, though it does not disclose the exact percentage. Additionally, the company does not detail how compliance is monitored.

The company is investing in regenerative agriculture to enhance soil health. Its subsidiary aims to source 100% regenerative beef for hot dogs by 2025 through partnerships.

The company states that its suppliers must comply with deforestation laws, protect high-value forests and peatlands, and avoid sourcing from high-risk deforestation areas for products like beef, cocoa, and palm oil. It engages with suppliers on forest-related issues by sharing its Sustainable Agriculture Policy, Supplier Responsibility Principles, and beef supply action plan. However, the company does not sufficiently discuss how these efforts have enabled suppliers to achieve deforestation-free production or improved traceability.

The company ensures compliance among beef suppliers by requiring monitoring systems that utilise satellite images, geo-referenced farm maps, deforestation data, and information from public agencies regarding embargoed areas and human rights. It also mandates independent audits of these environmental monitoring systems. However, the company's value chain is only partially mapped, preventing comprehensive monitoring of indirect suppliers. The company states that if a supplier violates its sourcing principles, it will require corrective actions, and failing agreement on these actions will result in halting or terminating purchases from the supplier. According to the CDP Forests Report 2023, 100% of its cattle are traceable to the country of origin, though the inclusion of indirect suppliers is unclear. The company has not been publicly associated with deforestation during the reporting year.

The company reports collaborating with farmers to promote sustainable agricultural practices, including regenerative agriculture, aimed at enhancing the long-term health of soil and terrestrial ecosystems.

The company conducted a risk assessment using the WRI's Aqueduct Water Risk Atlas, identifying facilities in water-stressed regions, which include two production sites in the U.S. and three international locations, without disclosing exact locations. The company disclosed a water consumption of 17,165,000 m3 and is focusing on improving water efficiency, supporting watershed conservation, and managing wastewater. Its goals include advancing stewardship in priority watersheds, collaborating on wastewater treatment, and achieving a 1% annual water efficiency gain. In 2023, water-saving initiatives at the Melrose and Rochelle plants saved over 55 million gallons, leading to a 2% reduction in total water use.

As part of the 20 By 30 Challenge, the company achieved a 2% reduction in water usage in 2023, meeting its annual target. It has adopted the WRI's definition of "water use," which refers to the total amount of water withdrawn from its source for use.

In 2023, the company withdrew 84% of its water from groundwater and 16% from surface water. It used 191,000 m3 of water from water-stressed areas, representing 4.2% of total water consumption and 1% of total withdrawals. Total water use and withdrawal were 17,165,000 m3, a decrease from 17,585,000 m3 in 2022. While it adopted the WRI's definition of "water use," no comparative data from previous years are available, which the company is encouraged to address. The company reported a 10% annual increase in water-related CAPEX and a 5% increase in OPEX. It responded to the CDP Water questionnaire in 2023. However, there is no disclosure regarding third-party auditing of its water-related data.

The company encourages suppliers to reduce environmental impacts, set improvement targets, measure progress, and optimise water use, but this is an expectation rather than a requirement. The company is a primary sponsor of the EcoHarvest programme, a 50,000-acre pilot project in central and southern Minnesota, led by ESMC and TNC. This initiative promotes sustainable farming practices by offering financial incentives to farmers, with approximately 41,000 acres enrolled. The programme aims to enhance water quality, generate certified water and carbon credits, and improve agricultural resilience. The company has partnered with other organisations to offer financial incentives for sustainable agricultural practices. This collaboration will help develop a water-quality credit framework in Minnesota, supporting improved water stewardship, carbon removals, and agricultural resilience in the region.

The company reports that none of the animal feed sourced for Jennie-O or its contract growers in 2023 came from regions of high or extremely high baseline water stress. However, data on water stress regions for pork, beef, or chicken feed was unavailable at the time of disclosure. The company has completed its support for the Minnesota regenerative agriculture project, EcoHarvest, and will extend its participation for another year. This initiative aims to accelerate the adoption of sustainable agriculture practices and measure environmental outcomes, including certified water credits. As the lead sponsor, the company collaborates with other organisations, offering financial incentives for farmers in a 50,000-acre pilot project. Additionally, through its Applegate subsidiary, the company invests in regenerative agriculture in collaboration with groups like Land to Market and Kiss the Ground. The subsidiary is committed to sourcing all beef for Applegate® beef hot dogs from certified regenerative farms by the end of 2025, providing support through purchasing contracts. However, it is unclear if this initiative addresses sustainable feed production concerning water use. The company has not disclosed its feed water intensity.

The company reports that less than 1% of its poultry and hog products are sourced from water-stressed areas, and none of its pork and turkey supplies came from high or extremely high water risk areas in 2023. While the company expects suppliers to reduce environmental impacts and optimise water use, it does not enforce this as a requirement and does not provide detailed guidance, support, or incentives for water use in animal farming.

The company, through its Applegate subsidiary, practises regenerative agriculture and advances sustainable practices in partnership with Land to Market and Kiss the Ground as part of Regenerate America™. Applegate also participates in the National Young Farmers Coalition and Organic Trade Association to promote a resilient agricultural system.

The company reported a non-compliance incident with water regulations in both 2022 and 2023, resulting in a fine of $61,547 for exceeding discharge limits of fats, oils, and greases into the Wichita River Basin. Corrective actions were promptly implemented, and compliance was ensured. The company has five production facilities, two in the U.S. and three internationally, located in areas with high water risk according to the WRI Aqueduct tool. While country-level locations are disclosed, specific facility details are not. It has set and achieved a quality target to reduce organic discharge mass by 10% by 2030 as of 2022. This target is now replaced by a new goal to invest in wastewater treatment technologies for further improving water quality. However, specific targets for pollutants—such as COD, BOD, TN, or TP—aligned with World Bank standards are not disclosed. The company does not set a specific volume target for reducing wastewater discharge.

The company does not disclose the quality of its wastewater discharge, including key effluent metrics such as nitrogen loading rate, biological oxygen demand (BOD), or nitrogen concentration. It does, however, report the volume of wastewater discharged, totalling 15,748 thousand cubic meters in 2022, an increase attributed to additional facilities and operational changes. The company does not confirm third-party auditing of its wastewater data. It submitted data to the CDP Water Security programme for 2023, receiving a score of B-.

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 facilitates sustainable agriculture on 50,000 acres in Minnesota through the EcoHarvest programme, which presents financial incentives to farmers and emphasises water stewardship, reduction of nutrient pollution, and generation of environmental credits. However, it lacks specific guidance on fertiliser use and nutrient management plans, though it demonstrates a commitment to responsible nutrient practices among suppliers and growers. Partnerships with third parties, including the Ecosystem Services Market Consortium and The Nature Conservancy, aim to enhance its sourcing and farming strategy, particularly focused on nutrient pollution and fertiliser management. Nonetheless, the company does not disclose how it manages nutrients in feed farming or require suppliers to implement nutrient management plans for purchased or produced feed.

The company invested $1.7 million in a 50,000-acre regenerative agriculture project aimed at promoting sustainable agriculture and verifying positive environmental outcomes. However, it does not provide specific details on addressing nutrient pollution in feed farming, such as through crop diversification or alternative feed sources. The company also does not disclose information about pesticide use in its feed supply chain.

The company has a legally required manure and litter management plan that promotes nutrient management among grower partners. However, it lacks details on converting manure to biogas or sustainably applying slurry based on a nutrient management plan, indicating a general approach to manure management without specific actions for energy generation or sustainable use. Additionally, the company does not disclose conducting pollution risk assessments to identify high-risk locations sensitive to nutrient pollution.

The company includes nutrient management plans in supplier contracts for sustainable manure management, but it lacks formal oversight as it does not verify compliance. Additionally, the company does not disclose providing technical or financial support to suppliers or its own farms for developing these plans or improving manure storage facilities.

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 prohibits the use of medically important antibiotics for growth promotion, aligning with U.S. FDA guidelines across its poultry and pork operations. It aims to eliminate the routine use of medically important antibiotics by 2025. To reduce antibiotic use, the company implements biosecurity programs, routine health monitoring, and vaccination programs. It also uses alternatives such as probiotics, essential oils, and prebiotics, employs veterinarians to oversee animal health, and collaborates with partners on long-term health strategies.

The company discloses the use of medically important antibiotics in its Jennie-O turkey and pork supply chains, measured in mg per pound of animal. It provides detailed antibiotic usage data from 2018 to 2023 for Jennie-O farms and its pork operations, including sow and partner farms. Antibiotic usage by class is reported, including tetracyclines, penicillins, and macrolides for both supply chains. The company attributes recent increases in antibiotic use to health challenges. In Jennie-O turkey operations, these include salmonella outbreaks, enteritis, and E. coli infections. In pork operations, increased use was due to porcine reproductive and respiratory syndrome (PRRS) and respiratory issues in high hog density areas. Despite efforts to reduce antibiotic use, the company experienced a slight increase in the latest period. Jennie-O turkey operations achieved a 10% reduction target for FY2021 and FY2022 but reported an increase in 2023 due to salmonella outbreaks. Pork operations reduced feed-administered antibiotics but increased injectable antibiotics for targeted treatments. The company does not disclose whether antibiotic usage data is audited by a third party.

The company upholds a zero-tolerance policy against animal mistreatment throughout its supply chain, supporting the Five Freedoms of Animal Welfare. It focuses on minimising stress, managing social needs, and ensuring humane care for animals. Comprehensive animal welfare training is mandatory for employees and suppliers involved in turkey and hog operations. Turkey workers undergo regular training, supplemented by audits, while hog handlers are certified through the National Pork Board's Transport Quality Assurance (TQA) programme and follow the Pork Quality Assurance (PQA) Plus programme. The company discloses actions taken for breaches of its animal welfare policy and reserves the right to terminate supplier relationships for severe violations or failure to address noncompliance. Corrective measures include facility inspections and documentation reviews to ensure adherence. Animal welfare is further promoted through collaborative initiatives and internal research, notably within Jennie-O Turkey Store and Applegate operations. Jennie-O has conducted 24 studies over five years on alternatives to antibiotics and management practices to enhance animal health. The company partners with third-party certifiers such as Global Animal Partnership and Certified Humane to enhance welfare standards, although these efforts are not yet applied across the entire protein supply chain.

The company is committed to avoiding close confinement in its pork and poultry operations. It has transitioned its company-owned hog farm to group sow housing and ensures all market hogs are raised in group pens from birth. In its broiler chicken supply chain, it aims to meet the Global Animal Partnership (GAP) standards by 2024, ensuring appropriate stocking densities. Furthermore, 100% of the shell and liquid eggs used in its branded products are cage-free. However, there is no commitment to avoiding long-distance transportation. The company is committed to implementing humane slaughter practices for broiler chickens, with plans to introduce controlled-atmosphere stunning systems by 2024. Nonetheless, there is no explicit disclosure of humane slaughter methods for its pork operations. By 2024, the company plans to improve broiler chicken environments with better lighting, litter quality, and space for natural behaviours, although these improvements align with basic welfare standards rather than providing comprehensive enrichment. There is no evidence of broader measures to promote natural behaviours or positive emotional states for either chickens or pigs. The company is committed to transitioning to higher welfare chicken breeds by 2028 but does not address high welfare pork breeds or specific breed selection strategies for pigs to mitigate anatomical or metabolic disorders. Additionally, the company does not commit to avoiding routine mutilation.

The company's Applegate subsidiary upholds animal welfare standards for pork and poultry through collaborations with third-party certifiers, including Global Animal Partnership (GAP) and Certified Humane. However, these certifications apply only to a portion of the company's pork and poultry operations. Applegate also requires its suppliers to comply with third-party certified animal welfare standards.

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

The company is transitioning its pork operations to group sow housing, eliminating gestation crates, but lacks policies prohibiting tail docking, surgical castration, or providing enriched environments for natural behaviours. Through its Applegate business, the company commits to improving broiler chicken welfare by aiming for Global Animal Partnership (GAP) standards by 2024. These include enhancements in lighting, litter quality, and stocking densities to support natural behaviours. It also plans to implement a multi-step controlled atmospheric processing system for more humane slaughter and requires third-party audits for suppliers. However, it does not specify stocking density limits, such as 30kg/m², or exclusively using higher welfare breeds. The company does not address key welfare risks in beef, such as limiting transport times, ensuring effective stunning, prohibiting dehorning, or providing outdoor access.

The company issues a general statement on respecting human rights according to the International Bill of Human Rights and International Labour Organization Conventions, among other international standards.

The company has established a compliance scheme to enforce its code of ethical conduct, including human rights policies, within its operations and supply chain. It performs supply chain due diligence to monitor potential modern slavery and conducts assessments for potential investments and acquisitions. However, the company does not disclose details of any human rights due diligence process for its own operations. While the company undertakes due diligence and self-assessment to address modern slavery in its supply chain, these do not appear to cover all human rights issues, and it is unclear if any monitoring actions were taken during the reporting year. The company reports that employees receive annual human rights training but lacks adequate detail on mitigating supply chain human rights risks.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company's Business Code of Conduct prohibits child labour, forced labour, discrimination, and harassment. It aims to be an employer of choice by providing fair wages and adhering to minimum wage laws. However, there is no clear commitment to paying all workers a living wage or sick pay. A compliance programme under audit committee oversight ensures adherence to the Code of Ethical Business Conduct and Supplier Code of Conduct. Nonetheless, the company does not specify whether audits are part of this programme or if the policies are audited. The Supplier Code of Conduct prohibits discrimination, harassment, child labour, and forced labour, but does not require suppliers to pay a living wage.

The company has established a compliance program, overseen by the audit committee, to ensure adherence to its Code of Ethical Business Conduct and Supplier Code of Conduct. However, it does not specify whether audits are conducted as part of this program or cover the selected policies. Employees and suppliers can file anonymous grievance reports via a third-party-managed website and hotline. The company does not disclose whether stakeholders were consulted during the design of the grievance mechanism or the total number of grievances received during the reporting year.

The company commits to maintaining a safe workplace and adheres to safety regulations and practices. It has established a corporate safety department to develop policies and conduct audits, ensuring compliance with Occupational Safety and Health Administration (OSHA) standards. Each facility has an employee-led safety committee. However, the company does not disclose a health and safety certification and has not assessed antimicrobial resistance risk for its workforce.

The company reports a decrease in its Total Case Incident Rate (TCIR) from 2.6 in FY2022 to 2.2 in FY2023, with zero fatalities in both years. The turnover rate for FY2023 was 7% for salaried team members and 34% for hourly team members, but this is not further broken down by seniority.

The company acknowledges employees' right to freedom of association and collective bargaining, with trade unions representing 20% of its global workforce in 2023. The Supplier Code of Conduct also requires suppliers to respect these rights. However, the company does not detail measures taken to support these rights.

The company states that 20% of its workforce is represented under collective bargaining agreements, respecting employees' right to engage in such negotiations. In 2023, the workforce comprises 19% salaried team members, 81% hourly team members, 1% part-time team members, and 4% temporary team members. However, it does not disclose the number of subcontracted workers used in the reporting year.

The company reports that 26 of its 41 manufacturing facilities are GFSI certified, receiving Safe Quality Food (SQF), British Retail Consortium (BRC), and FSSC 2000 certifications. It ensures suppliers comply with GFSI-recognised food safety standards but does not specify if GFSI certification is mandatory for suppliers or disclose the proportion of suppliers with this certification.

The company reports conducting both internal and external food safety audits, including five additional audits in 2023, but does not disclose the total number of audits performed. It states a 100% corrective action rate for food safety violations but does not reveal the total number of violation notices received in FY2023. The company has a traceability process starting from ingredient suppliers and extending through to customers. This process, supported by electronic records, allows for detailed supply chain transparency, enabling the identification of the farm of origin for each hog processed daily at its facilities nationwide.

The company discloses detailed information on a product recall in the current reporting period and mentions a communication channel for consumer reports. However, it does not provide details of the recall system itself. It reports three recalls within the year: 10,642 pounds of Don Miguel® carne asada burritos due to a supplier issue, limited quantities of PLANTERS® peanuts and mixed nuts due to potential Listeria contamination, and 945 pounds of spiced deli ham for misbranding and an undeclared milk allergen. No consumer illnesses were reported, and recalls were initiated proactively to protect consumers. The company does not disclose any preventative or corrective actions taken.

The company acknowledges potential import bans on its products due to tariff issues or animal disease outbreaks, such as avian influenza, and states it actively monitors and complies with regulations in the U.S. and export markets. However, it does not disclose the number of market bans during the reporting period. Additionally, the company recalled 945 pounds of spiced deli ham because of undeclared milk, an allergen, discovered by deli employees who noticed cheese in the product. No adverse reactions were reported, although the FSIS advised delis and consumers with milk allergies to discard or return the product.

The company states that its Board, Board-level committees, and Global Impact Executive Council oversee its sustainability efforts and ESG initiatives. In 2022, it conducted a biennial materiality assessment to prioritise key sustainability topics, with input from stakeholders including senior leadership, investors, and consumers. This assessment highlighted areas such as team member well-being, eco-friendly packaging, and climate impact, and its results were reviewed by the Board of Directors. Elsa A. Murano is noted for her expertise in food safety, while board members Prama Bhatt and William A. Newland possess expertise in product strategy, design, development, and innovation. However, the company does not disclose board-level expertise in sustainability.

The company's annual incentive plan integrates ESG metrics into executives' performance-linked pay, with 10% of the CEO's pay tied to metrics such as diversity and inclusion. The company reports engaging with policymakers on labour and climate issues but does not clarify its positions. It also engages with industry associations on antimicrobial resistance while participating in groups like the Animal Agriculture Alliance and U.S. Poultry & Egg Association. However, the company does not commit to aligning its policy engagements with the goal of limiting global temperature rise to 1.5°C.

The company prioritises sustainable packaging by investing in research and innovation, with a dedicated team of specialists. It reports a reduction of 1.7 million pounds in packaging in 2023 through various initiatives. Additionally, the company conducts peer benchmarking and trend analysis to guide its materiality assessment and has been recognised in Barron's list of the 100 Most Sustainable US Companies.

The company is committed to expanding its plant-based offerings with innovative products to meet evolving consumer preferences. It discloses a goal to achieve 15% of sales from new products annually and reports on this progress each year. However, the company does not report revenue linked to alternative protein sources and is encouraged to do so. Additionally, it has not set a timebound target for diversifying protein sources.

The company offers various plant-based products, including snack nuts, peanut butter, nut butter, and plant-based pizza toppings, which use pea protein as an alternative to animal proteins. In 2023, it expanded its flavoured cashew and peanut range, and its peanut butter varieties received vegan certification from the Vegan Awareness Foundation. However, the company has not explicitly stated any investment in the future development of alternative proteins.