Industrias Bachoco SAB de CV
BACHOCOB:MM MX01BA1D0003
Key Information
HQ:
Mexico
Market Cap:
$2.71bn
Primary Markets:
North America, LATAM
Coller FAIRR Protein Producer Index
Analysis Overview
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Analysis Breakdown
Risk Score
18/100
High Risk
Greenhouse Gas Emissions
9/100
Scope 1, 2 & 3 Target
5/100
Type of Target
The company does not have a science-based emission reduction target.
0/3
Strength of Target - Non-SBT
The company implemented sustainable technologies in production centres to increase the use of renewable energies and optimise energy consumption by installing solar panels. The installed solar panels in Mexico generated 1516 MWh from solar energy, helping reduce CO2e emissions by 659 tons. It procures feed, including corn and soybean and sources beef and turkey. Emissions from these activities should be accounted for in Scope 3 emissions. However, it does not disclose whether it has set targets to reduce GHG emissions from Scope 3.
0.25/2
Innovation on GHG Emission Reduction
0/100
Innovation to Reduce Agriculture Emissions
The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.
0/1
Feed Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from feed farming
0/2
Animal Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from animal farming
0/2
Quality of GHG Inventory
35/100
Quality and scope of GHG inventory Completeness
The company discloses its GHG emissions from Scope 1 is 309,331 tons of CO2e, and Scope 2 emissions is 223,569 tons of CO2e in the reporting year.
1.25/1.5
Feed & Animal Farming Emissions
The company is vertically integrated; therefore, animal farming emissions are included in Scope 1. It discloses Scope 1 emissions. However, it is unspecified whether animal farming emissions have been included. It does not disclose any information about emissions directly from feed farming.
0/2
Transparency of GHG Inventory
The company has submitted its CDP climate change questionnaire, and it scored D in 2022. The report is not publicly available.
0.5/1.5
Emissions Performance
5/100
Overall Emission Performance
The company discloses an increase in total absolute emissions by 19.96% from 444,197 tons of CO2e in 2021 to 532,900 tons of CO2e in 2022.
0.25/5
Climate-related Scenario Analysis
0/100
Climate-related Scenarios Analysis Conducted
The company does not discuss climate-related risks or opportunities and/or undertaking a scenario analysis.
0/1
Disclosure of Analysis Results on Material Risks
he company does not mention the risk of feed availability and price volatility. The company does not mentions the increased heat stress and mortality of animals. The company does not mention the increased veterinary and medicine costs. The company does not disclose information on increased energy costs'; The company does not discuss the risks of a carbon tax on electricity and/or animal protein. The company does not disclose the number of financially material events that occurred as a result of climate risk in the reporting period.
0/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose a commitment to align capital expenditures with its GHG targets.
0/1
Deforestation & Biodiversity
0/100
Deforestation/Conversion-free Target - Soy for Animal Feed
0/100
Risk Assessment to Identify High-risk Locations
The company owns 23 feed mills and procures corn and soybeans for its feed. The company also discloses that prices of soy affect the revenue of the company. However, the company does not disclose information related to how it manages deforestation risks linked to soy. Further, it does not reference deforestation throughout its annual or sustainability reports in 2022.
0/0.5
Strength of Deforestation Commitment
The company does not disclose having a deforestation/conversion-free target for soy.
0/3.25
Transparency - Progress Against Commitment
The company does not report progress against its commitment. Nor did it responded to the CDP Forest Questionnaire in 2022.
0/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
0/100
Supplier Engagement
The company does not disclose information related to how it engages soy suppliers on deforestation risks.
0/1.25
Compliance monitoring & Traceability
The company does not disclose how compliance in monitored or what actions are taken if non-compliance occurs. Further, the company does no disclose the level of traceability it has of its soy supply chain.
0/3.25
Feed Innovation
The company does not discuss innovations and/or practices to move towards sustainable feed sources.
0/0.5
Water Use & Scarcity
0/100
Water Use & Scarcity in Facilities
0/100
Monitoring Water Consumption & Withdrawals
The company does not disclose any data related to water or make any reference to water use throughout its annual or sustainability report. The company does not disclose whether it has conducted a risk assessment for its processing facilities. Based on its map of operations a large proportion of facilities are located in areas of high or extremely high water stress, according to the WRI Aqueduct tool. However, this information is not disclosed by the company.
0/0.75
Target to Reduce Water Consumption & Withdrawals
The company has not set a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.
0/1
Disclosure & Performance of Water Risks in Facilities
The company has submitted a response to CDP however, this is not publicly available.
0/3.25
Water Use & Scarcity in Feed Farming
0/100
Supplier Engagement in Water Use in Feed Farming
The company owns 23 feed mills and procures corn and soybeans for its feed. The company does not disclose information relating to water scarcity risks in feed farming.
0/2.5
Disclosure of Water Risks in Feed Farming
The company does not disclose feed water intensity, or the proportion of feed sourced from water stresses areas. Further, the company does not provide evidence that it is investing in sustainable feed production from a water use perspective.
0/2.5
Water Use & Scarcity in Animal Farming
0/100
Supplier Engagement in Water Use in Animal Farming
The company does not disclose the proportion of animal protein commodities produced and/or sourced in water-stressed areas. It does not disclose information related to water scarcity risks in animal farming. It mentions a fine incurred in December 2009 by the National Water Commission for supposed infractions made by the Company in water administration for livestock. Within its Code of Ethics document the company states that it believes in acting as good stewards of the land, air, water and earth and in supporting sustainable practices to protect and improve our environment. However, the company provides no further detail of the actions it takes.
0/3
Disclosure of Water Risks in Animal Farming
The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.
0/2
Waste & Pollution
0/100
Wastewater at Facilities
0/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company does not disclose the number of incidences of non-compliance with water quality permits, standards, and regulations this year. It does not disclose undertaking a risk assessment of water quality in the areas in which it operates. Based on its map of operations, all are located in areas of Low-Medium and Medium-High water stress from a quality perspective, based on the WRI Aqueduct tool. However, this information is not disclosed by the company.
0/1.5
Transparency on Water Pollution Risks
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.
0/2
Performance on Wastewater Quality & Volume Discharged
In 2020 the company disclosed that it promotes the use of biogas using fuel sourced from bio-digesters installed at its farms. However the company does not provide any disclosure around this practice in its current reports.
0/1.5
Nutrient Management in Feed Farming
0/100
Supplier Engagement in Nutrient Pollution Risks
There is no discussion around nutrient management plans within its reporting.
0/4
Innovation to Improve Nutrient Management in Feed Farming
The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.
0/1
Manure Management in Animal Farming
0/100
Disclosure of Pollution Risks from Manure
The company does not provide any disclosure relating to how it treats manure. It does not disclose conducting a risk assessment of water quality around its farming operations.
0/1.25
Supplier Engagement in Manure Management
The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.
0/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.
0/2.25
Antibiotics
10/100
Policy on Antibiotics Use
20/100
Policy on Antibiotics Use
The company adheres to the regulated use of antibiotics and Good Livestock Production Practices, which encompass the administration of vaccines and antibiotics. However, it fails to provide explicit details regarding the administration conditions and justifications for antibiotic use, indicating a lack of a formal antibiotics policy.
1/5
Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
The company does not disclose its usage of antibiotics.
0/5
Animal Welfare
16/100
Animal Welfare Policy
37/100
Welfare Policy
The company commits to the Five Freedoms and adheres to guidelines from the National Chicken Council (NCC). It provides ongoing employee training focused on animal care and environmental comfort. Animal welfare is also included in its code of ethics, with a framework for action if breaches occur. However, the latest 2023 Code of Conduct and Ethics lacks specific details on actions to be taken for such breaches.
1.25/2
Key Welfare Issues
The company commits to animal welfare and complies with regulations governing animal transport and Mexican slaughter standards. However, it has not explicitly committed to minimising long-distance transportation or to humane slaughter, including stunning.
0.6/3
Assurance & Certification
10/100
Auditing & Assurance by an Animal Welfare Organisation
The company commits to an animal welfare plan in the US, adhering to National Chicken Council guidelines. The effectiveness of this programme is audited by the Professional Animal Auditor Certification Organisation (PAACO).
0.5/4
Public Reporting on Welfare
The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.
0/1
Performance on Key Material Risks
0/100
Performance on Key Material Welfare Risks by Protein
The company has not disclosed information on maximum transport times in beef production. Moreover, specifics such as maximum stocking density of 30kg/m², prohibition of water bath stunning, or the use of higher welfare breeds are not addressed. Additionally, there is no information regarding stocking density, access to nestboxes, or adequate air quality in their operations.
0/5
Working Conditions
38/100
Human Rights
10/100
Strength of Policy
The company commits in writing to respect human rights but does not state whether it follows internationally agreed human rights agreements or principles.
0.5/1
Due Diligence Process
The company does not discuss how it monitors, assesses and mitigates actual and potential human rights risks in its own operations or supply chain.
0/3
Evidence of Remediation
The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence
0/1
Fair Working Conditions
46/100
Policy for Direct Operations
The company commits in writing to prohibit child labour, forced labour, and discrimination. These policies are audited externally by Deloitte. However, the company does not disclose promoting fair wages or ask that suppliers follow these policies. Furthermore, the company does not provide information on sick pay for its workers.
1.3/3
Monitoring & Discosure
The company has an anonymous grievance reporting mechanism accessible to employees and external stakeholders. However, it does not be mentioned that the grievance mechanism is designed in consultation with stakeholders, such as employees or trade unions. Additionally, the grievance mechanisms are only in place to cover breaches of the company's Code of Ethics, which attaches no responsibility to the suppliers in terms of upholding human rights or adequate working conditions. Therefore, supplier misconduct cannot be reported through the grievance mechanisms; they are only open to suppliers to report on company misconduct.
1/2
Safety & Turnover Data
40/100
Committee representation of workers
The company discloses having an occupational health and safety management system focused on promoting a healthy working environment. In addition, The company has health and safety committees for improving compliance with safety systems. However, the company does not disclose the percentage of facilities/sites with a health and safety committee or whether these committees include worker representatives. However, the company does not disclose having a health and safety management system certification.
0.5/2
Disclosure of safety and turnover data
The company discloses an injury frequency rate of 1.92 in the reporting year and an injury frequency rate of 2.43 in the previous year, demonstrating a year-on-year improvement.
The company discloses an overall average employee turnover rate of 3.96% in Mexico and 8.29% in the United States but does not disaggregate these by seniority level.
1.5/3
Freedom of Association
54/100
Strength of Policies
The company commits in writing to support freedom of association and collective bargaining and mentions that 56% of its employees are unionised in Mexico. The company says that as part of the measures adopted to support the rights of association, annual reviews of collective labour agreements are carried out to improve the conditions and compensation of the personnel. However, the unionisation rate for the US is not disclosed, so geographic scope only covers 3/4 of operations. Furthermore, the company does not state whether it requires or expects suppliers to uphold their employee's rights to freedom of association and collective bargaining.
1.45/3
Disclosure of Collective Bargaining Metrics
The company discloses that collective bargaining agreements cover 56% of personnel in Mexico and 3% in the USA. The company also discloses that its workforce comprises 32,955 employees on permanent contracts and 1,143 employees on temporary contracts.
1.25/2
Food Safety
65/100
Food Safety System
50/100
Certifications
The company acknowledges the importance of food safety and discloses that all its products are in accordance with the SQF certification. Its plants in the US are also BRC certified. These are GFSI-recognised. The company discloses that all its processing, packing and pet food plants in Mexico have SQF certification. However, the proportion of facilities in the US that are BRC-certified is not clear and cannot be inferred. It discusses that it promotes the implementation of best practices within their value chain to ensure highest quality products. The company discloses that 63% of suppliers are certified by the GFSI. However, it does not disclose explicitly whether it expects its suppliers to have any of the GFSI certifications.
2.25/3.5
Performance
The company discloses it undergoes annual food safety audits without prior notice as part of it is SQF certification. Six out of eight plants audited by the SQF Institute obtained a rating of 'Excellent' in 2022. However, corrective action rates are note disclosed. Further, it does not have a formal consumer-facing technology in place; it only provides required information as per laws.
0.25/1.5
Product Recalls & Market Bans
80/100
Product Recall Systems
The company does not disclose information related to a product recall system. However, it discloses zero non-compliance pertaining to its products' health and safety or information and labelling. Therefore, it can be assumed that there were no food safety recalls.
2/3
Performance
The company discloses zero cases of non-compliance against regulations or voluntary codes related to the health and safety impacts of product and service categories. Therefore, it can be assumed that the company has zero market bans in the reporting year.
2/2
Sustainability Governance
25/100
Assessment of a Company's Sustainability Governance
25/100
Board Sustainability
The company has a formal board-level sustainability committee designed to achieve business objectives related to sustainability. For FY2022, the company did not conduct a new materiality assessment. It uses ts obtained from the last materiality study, updated in FY2020. It discloses material themes, which include talent attraction and retention, ethics, transparency and integrity, compliance, biosecurity, the culture of sustainability, cultural change, research and innovation, social support, efficient execution, packaging, corporate governance, brand value, energy, customer service and pandemics. However, it does not be clarified to what extent the board is involved in the materiality assessment. The company does not disclose board-level expertise in sustainability, innovation or food safety.
0.75/2
Incentives & Policy Engagement
The company provides details on trade union memberships. However, it has not disclosed executive monetary remunerations linked with climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues or if it aligns any policy-engagement activities to restrict global temperature rise to 1.5C.
0.25/2.5
Innovation & Benchmarking
The company references benchmarking using the MERCO ESG responsibility ranking in its public disclosures. However, it does not disclose a clear strategic approach to sustainability innovation.
0.25/0.5
Alternative Proteins
0/100
Diversification of Products to Alternative Protein Sources
0/100
Existing product portfolio
The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources
0/2.5
Investing for future growth
The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.
0/2.5
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
2023 Risk Score:
18/100
Level:
High Risk
Ranking:
47/60
Main Protein:
Poultry and eggs
Assessed Proteins:
Poultry and eggs
Company Feedback Given:
No
Last Updated:
31 October 2023
2023 Resources
2023/24 Index Report Summary (Mandarin) 报告总结摘要(中文) Launch of the Coller FAIRR Protein Producer Index 2023/24 2023/24 Company Dialogue Questions 2023/24 Full Report Coller FAIRR Protein Producer Index