Industrias Bachoco SAB de CV

The company does not have a science-based emission reduction target.

The company undertakes sustainability measures by optimising energy use and adopting green technologies. It has installed solar panels at 300 work centres across 19 Mexican states, forming one of Latin America's largest renewable energy projects. Additionally, it reduces its carbon footprint by utilising recycled packaging and renewable energy. However, the company has not set targets to address its emissions. While it includes emissions from procured feed such as corn, soybeans, beef, and turkey in its Scope 3 emissions, it does not disclose any targets to reduce 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 reports its Scope 1 emissions as 313,602 tCO2e and Scope 2 emissions as 229,930 tCO2e for FY2023.

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 submitted its response to the 2023 CDP Climate Change questionnaire and received a score of C, although the response is not publicly available. Furthermore, it has not disclosed whether its GHG inventory data has undergone third-party audit.

Between FY2022 and FY2023, the company reported a 2% increase in total absolute emissions, rising from 532,900 tCO2e to 543,532 tCO2e. In FY2023, its Scope 1 and 2 GHG emissions were 313,602 tCO2e and 229,930 tCO2e, respectively. The company does not disclose any quantitative decrease in emissions related to feed, enteric fermentation, or manure management.

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

The company does not provide details on the assessment or mitigation of factors posing a material risk to protein production, including feed availability, heat stress, increased medicine and energy costs, and carbon taxes. Additionally, the company does not disclose the number of financially material events related to climate risk during the reporting period.

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

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

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

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

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

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

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

The company has not completed a water scarcity risk assessment to identify its facilities located in regions of high water stress, nor has it discussed measures to reduce water usage.

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

The company received a score of D in the 2023 CDP Water questionnaire, although its report is not publicly accessible. It does not disclose water withdrawals or consumption by source or water stress level, and there is no information on water-related CAPEX or OPEX. Additionally, it does not clarify whether its water data is third-party audited, nor does it provide any public information on water withdrawals or consumption.

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 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 submitted data to CDP Water Security 2023, receiving a D rating, but the reports are not publicly available. It fails to disclose wastewater quality data, including metrics such as BOD, COD, or nitrogen concentration, nor does it provide specific data on the volume of wastewater discharged. Additionally, the company has not confirmed third-party auditing of its wastewater discharge data.

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 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 acknowledges its adherence to responsible antibiotic use and animal health practices as per Senasica guidelines and claims to use minimal antibiotics for chicken health. However, it lacks a detailed policy and does not have a clear stance on growth promotion, prophylaxis, metaphylaxis, therapeutic use, or antibiotic-free brands. The company complies with Good Livestock Production Practices, including the administration of vaccines and antibiotics.

The company does not disclose the quantity of antibiotics used.

The company supports the Five Freedoms for Animal Welfare, adhering to good livestock practices to ensure freedom from hunger, discomfort, pain, and distress, while promoting normal behaviour in animals. It pledges to treat animals with care and respect throughout its production processes. The company is committed to training its employees in animal welfare and in 2023, certified 15 employees as Animal Welfare Officers. It provides channels for employees to report policy breaches but does not specify actions or penalties for violations. The company does not disclose its participation in research and development programmes aimed at advancing animal welfare.

The company complies with National Animal Health Regulations for animal transport but does not commit to reducing transportation time or setting specific limits on hours, focusing instead on safety standards. While the company adheres to national regulations, including NOM-033-ZOO-1995 on humane slaughter, its policies do not specify whether stunning is applied prior to slaughter, leaving process details unclear. There is no explicit commitment to avoiding close confinement or routine mutilation. The company also does not disclose information about providing an enriched environment for animals or excluding breeds with traits that may cause anatomical or metabolic disorders.

The company intends to certify all its pig farms under the Animal Care Program in FY2024 as part of its ongoing animal welfare improvement plan. In the United States, it adheres to responsible livestock practices through its Animal Welfare Plan, aligned with National Chicken Council (NCC) guidelines, and is supported by leading scientists and veterinarians. Its production processes comply with USDA and FSIS regulations and are audited by the Professional Animal Auditor Certification Organisation (PAACO).

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 a commitment to human rights but does not indicate adherence to internationally recognised human rights conventions.

The company does not discuss how it monitors, assesses, and mitigates actual and potential human rights risks in its operations or supply chain.

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

The company prohibits child labour, forced labour, discrimination, violence, and harassment within its operations but does not disclose information on promoting fair wages or providing sick pay. The application of the company's Code of Ethics is externally audited by Deloitte, following the Sarbanes-Oxley Act and the COSO framework 2013, with no instances of non-compliance reported.

The company provides a website, email address, and phone number for stakeholders to report grievances, and employees can make reports anonymously. However, it does not disclose whether stakeholders were consulted in designing the grievance mechanism. The grievance mechanisms appear to cover only breaches of the company's Code of Ethics, without holding suppliers accountable for human rights or working conditions. Consequently, supplier misconduct cannot be reported through these channels, which are intended only for suppliers to report company misconduct. Additionally, the company does not disclose the number of grievances received during the reporting year.

The company prioritises workplace safety but does not disclose any health and safety certifications. Although it has a health and safety committee focused on communication of system deviations, regular safety walkarounds, and continuous improvements, it does not specify the percentage of facilities with such committees or if they include worker representatives. Additionally, the company has not provided information on assessing or discussing antimicrobial resistance risk for the workforce.

The company reports an improvement in the injury frequency rate, decreasing from 1.92 in the previous year to 1.83 in the reporting year. It also discloses average monthly employee turnover rates of 3.42% in Mexico and 5.97% in the United States for the reporting year. However, the company does not disclose fatality data or rates for the reporting year or the previous year.

The company reports that 54% of its workers in Mexico are union members, while 3% of its workers in the USA are covered by a Collective Bargaining Agreement. However, it does not disclose the percentage of unionised workers in the USA, limiting the geographic coverage of the data. The company conducts annual reviews of the Collective Labour Agreements to enhance working conditions and compensation, but it does not disclose any measures to support freedom of association. Additionally, the company does not have a publicly available supplier code of conduct.

The company states that 54% of its employees in Mexico and 3% in the USA are covered by collective bargaining agreements, but it does not disclose if these terms extend to non-unionised employees. The workforce consists of 38,438 people, with 97% on permanent contracts and 3% on temporary contracts. However, the company does not provide data on full-time versus part-time workers or its subcontracted workforce.

The company reports that its owned facilities are Safe Quality Food (SQF) certified and some are British Retail Consortium (BRC) certified, both recognised by the Global Food Safety Initiative (GFSI). It has also received the Safe Food Quality and TIF Seal certificates to ensure food quality and hygiene control. However, the exact proportion of BRC-certified facilities is unclear. The company collaborates with business partners to maintain stringent safety and quality protocols across the supply chain, aligning with its standards and regulatory requirements. In FY2022, 63% of its suppliers were certified by the GFSI, but no such data is available for the current reporting year.

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 has established detailed product recovery procedures aligned with its quality and safety system, outlining responsibilities, activities, traceability, and a communication plan to inform relevant parties. However, the company does not provide comprehensive documentation on all aspects, including disposal procedures and a complete recall protocol. The company reports no instances of non-compliance relating to product health, safety, information, or labelling, suggesting no recalls due to food safety concerns.

The company reports no non-compliance with regulations or voluntary codes regarding the health and safety impacts of its products and services, indicating it faced no market bans during the reporting period.

The company states that its Board oversees business sustainability, with the sustainability committee primarily responsible for promoting ESG principles. The material issues identified in the company’s last materiality assessment are disclosed, although this was last updated in 2020. Increased frequency in updating this assessment is recommended. One executive officer, José Antonio Güereque Flores, possesses expertise in innovation. However, the company does not disclose board-level expertise in sustainability or food safety.

The company does not report engaging with public policy officials or trade and civil associations on ESG issues. Although it discloses membership in the National Union of Poultry Farmers in Mexico and the US Poultry Chicken Council, it does not disclose setting executive remuneration linked to sustainability performance or a 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.