LDC SA
LOUP:FP FR0013204336
Key Information
HQ:
France
Market Cap:
$2.62bn
Primary Market:
Europe & Russia
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
34/100
Medium Risk
Greenhouse Gas Emissions
19/100
Scope 1, 2 & 3 Target
15/100
Type of Target
The company does not have a science-based emission reduction target.
0/3
Strength of Target - Non-SBT
The company aims to reduce energy consumption by 10% by 2025 from 2018 levels, focusing on Scope 1 and 2 emissions through energy efficiency and resource conservation. Initiatives include optimising poultry feed and using local raw materials to reduce greenhouse gas emissions.
While the company is concluding its 2025 Climate and Biodiversity mitigation strategy with steps for a 40% emissions reduction across Scopes 1, 2, and 3 by 2035, this target is yet to be finalised. The disclosed Scope 3 emissions include upstream agricultural processes, suggesting the anticipated reduction target encompasses agricultural emissions.
0.72/2
Innovation on GHG Emission Reduction
20/100
Innovation to Reduce Agriculture Emissions
The company reveals that most of its greenhouse gas emissions are Scope 3, predominantly from upstream agricultural activities related to raw materials for poultry feed, contributing 62% of these emissions. It reports efforts to optimise resource use to mitigate emissions and supports partner farmers in managing poultry house environments, controlling energy consumption, and advising on energy transition projects.
1/1
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
50/100
Quality and scope of GHG inventory Completeness
The company reports total emissions of 8.67 MtCO2e for FY2023, with Scope 1 and 2 emissions totalling 261,000 tCO2e and Scope 3 emissions calculated at 8,409,000 tCO2e.
1.5/1.5
Feed & Animal Farming Emissions
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.
0/2
Transparency of GHG Inventory
The company has not responded to the CDP Climate Change Questionnaire 2023. Limited assurance of the company's consolidated non-financial performance, including Scopes 1, 2, and 3 emissions, has been conducted by EY.
1/1.5
Emissions Performance
5/100
Overall Emission Performance
Between FY2022 and FY2023, the company's combined Scope 1, 2 and 3 emissions rose by 6.25%, from 8.16 MtCO2e to 8.67 MtCO2e. The company does not disclose emissions from feed, enteric fermentation, or manure management. For FY2023, Scope 1 and 2 emissions amounted to 261 KtCO2e, while Scope 3 emissions were 8,409,000 tCO2e.
0.25/5
Climate-related Scenario Analysis
5/100
Climate-related Scenarios Analysis Conducted
The company reports collaboration with AXA CLIMATE to analyse climate risks and opportunities for the entire group, using data up to 28 February 2024, with a focus on SSP2-4.5 and SSP5-8.5 climate projection scenarios. However, it does not disclose details of the climate-related scenario analysis.
0.25/1
Disclosure of Analysis Results on Material Risks
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.
0/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose its commitment to align capital expenditures with its GHG targets.
0/1
Deforestation & Biodiversity
53/100
Deforestation/Conversion-free Target - Soy for Animal Feed
65/100
Risk Assessment to Identify High-risk Locations
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.
0/0.5
Strength of Deforestation Commitment
The company aims to achieve a 100% deforestation and conversion-free soy supply chain by 2025. It has also committed to not using soy from recently deforested land since 1 January 2020, particularly in Brazil's Cerrado region.
2/2
Regional & Operational Coverage of Commitment
The company aims to procure 100% of its soy through sustainable methods with zero deforestation and has set a target with external suppliers to achieve a deforestation- and conversion-free soy supply chain by 2025. This commitment extends to all its operations and supply chain.
1.25/1.25
Transparency - Progress Against Commitment
The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.
0/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
40/100
Supplier Engagement
The company collaborates with suppliers and industry partners to address deforestation, focusing on obtaining detailed soy traceability data to avoid sourcing from recently deforested land, particularly in Brazil's Cerrado region, since January 1, 2020. Since 2020, it has intensified efforts to promote sustainable animal feed to combat soybean-related deforestation and plans to involve farmers actively in non-conversion and deforestation initiatives. However, the specific support it will provide remains unclear.
0.25/1.25
Compliance monitoring & Traceability
The company has implemented a compliance mechanism for soy suppliers, which includes publishing details of original plots and accepting independent audits for silos in high-risk areas. It is participating in a joint French strategy aimed at achieving deforestation-free soy supply chains. Partners with non-compliance reports risk temporary or permanent exclusion. However, the company does not provide evidence of traceability within its soy supply chain.
1.5/3.25
Feed Innovation
The company fosters biodiversity by managing wildlife habitats on its land, including pools and meadows, and installing insect houses and beehives. It educates external providers on maintaining these habitats and involves farmers in biodiversity-friendly practices such as organic farming and agroforestry.
The company raises awareness among staff and consumers about biodiversity preservation and food waste reduction. It also aims to increase the use of locally procured soya and is exploring the possibility of incorporating animal proteins as a soya alternative in its feed following recent EU regulatory changes.
0.25/0.5
Water Use & Scarcity
15/100
Water Use & Scarcity in Facilities
46/100
Monitoring Water Consumption & Withdrawals
The company employs the TNFD method to map its production sites and reports that none of its partner farms or production sites are in areas with high water stress. However, it does not disclose the precise water stress levels of these sites.
The company has introduced various activities to enhance water management, such as process optimisation, mechanical efficiency upgrades, staff training, and measures derived from techno-economic studies by the Loire-Bretagne Water Agency. In FY2023, it achieved a 5.9% reduction in the water consumption rate compared to FY2018, with a relative consumption figure of 3.2 litres per kilogram of product.
0.55/0.75
Target to Reduce Water Consumption & Withdrawals
The company has set a target to reduce its water consumption rate by 5% by 2025 compared to 2018 levels. It achieved a 5.9% reduction in this rate by 2023. While the company has established a time-bound target for reducing water consumption intensity, it has not specified a similar target for reducing water withdrawals.
0.5/1
Disclosure & Performance of Water Risks in Facilities
The company sources water from both the public grid and private sources for processes such as slaughterhouses, cutting, food manufacturing, and cleaning, yet it does not disclose quantitative details of water consumption or withdrawal by source or stress level.
It reports that €15.5 million in CAPEX is allocated to environmental spending, with 37% (€5.735 million) invested in water-related projects. Although the company states operating expenditure is just 4.05% of total OPEX under the Taxonomy Regulation, it does not specify the portion related to water.
EY has provided limited assurance on the company's non-financial performance, including the water consumption rate. However, the company did not respond to the CDP Water Questionnaire 2023 and does not provide actual data for water consumption or the total amount withdrawn. Despite reporting an 8.9% decrease in relative water consumption (litres per kg produced) compared to FY2022, specific figures for the reporting period and the previous year are not disclosed.
1.25/3.25
Water Use & Scarcity in Feed Farming
0/100
Supplier Engagement in Water Use in Feed Farming
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.
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-stressed areas. Furthermore, 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 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.
0/4
Disclosure of Water Risks in Animal Farming
The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.
0/1
Waste & Pollution
15/100
Wastewater at Facilities
33/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
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.
0/1.5
Transparency on Water Pollution Risks
The company discloses Chemical Oxygen Demand (COD) levels of wastewater from its prepared poultry and convenience food operations, but not the volume of wastewater discharged. EY has conducted limited assurance of its consolidated non-financial performance, including wastewater data. However, the company did not respond to the CDP Water Questionnaire 2023.
1.24/2
Performance on Wastewater Quality & Volume Discharged
In 2023, the company generated 557 MWh from a biogas unit at an effluent treatment plant serving a slaughterhouse and a prepared food plant. It reports a 12% reduction in the COD ratio for prepared poultry from 16.7 kg dead/kg manufactured in FY2022 to 14.7 kg in FY2023, and an 8% reduction for its convenience food division from 11 kg to 10.1 kg during the same period.
Conversely, the company reports a 12% increase in the COD ratio for prepared poultry at locations without treatment plants, from 0.17 kg dead/kg in FY2022 to 0.19 kg in FY2023, and a 17% increase for convenience food from 0.06 kg to 0.07 kg. It does not disclose the aggregate volume of wastewater discharged.
0.4/1.5
Nutrient Management in Feed Farming
5/100
Supplier Engagement in Nutrient Pollution Risks
The company states that sludge from its treatment plants can be resold for composting, methane production, or crop irrigation. A specialised research unit analyses crops post-sludge spreading to verify fertilisation attributes, and it collaborates with farmers to promote sustainable farming practices. However, it is unclear if these practices extend to the company's feed suppliers.
The company encourages suppliers to adopt eco-friendly practices to mitigate environmental risks from intensive agriculture but provides no further details. It analyses farm characteristics and crop needs before using sludge as fertiliser, but it is unclear if this process applies to its feed supply. Additionally, the company has not partnered with third parties to enhance its sourcing or farming strategies, including nutrient pollution or fertiliser use.
0.25/4
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
7/100
Disclosure of Pollution Risks from Manure
The company raises awareness and collaborates with its partner farmers to create composting stations for manure, but does not specify if all partner farms are involved. It produces biogas from organic waste, though it is unclear whether this is used internally. Additionally, the company does not disclose whether it conducts risk assessments to identify high-risk locations.
0.35/1.25
Supplier Engagement in Manure Management
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.
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 innovations in manure or provide evidence of a community engagement plan in relation to pollution.
0/2.25
Antibiotics
40/100
Policy on Antibiotics Use
80/100
Policy on Antibiotics Use
The company has established a formal antibiotics policy that limits use to therapeutic purposes under veterinary supervision, prohibiting routine use, including for growth promotion and disease prevention. It aims to eliminate the use of critically important antibiotics across all operations. Initiatives to reduce antibiotic reliance include using natural alternatives such as probiotics and plant extracts, enhancing biosecurity, sanitation, and vaccination programmes, and reducing stocking densities in poultry housing. Additionally, the company is endeavouring to decrease routine mutilations.
4/5
Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
The company does not disclose the quantity of antibiotics used.
0/5
Animal Welfare
59/100
Animal Welfare Policy
80/100
Welfare Policy
The company has issued a comprehensive statement endorsing the Five Freedoms, aligning with guidelines from the World Organisation for Animal Health (OIE) and the Farm Animal Welfare Council (FAWC). This commitment, covering all species and products, is integrated across its operations, focusing on animal well-being, protection, and health.
Comprehensive training programmes are in place to educate all employees involved in animal care and handling on welfare issues. The programmes are applied across operational levels, from farms to slaughterhouses, ensuring breeders and production site employees receive appropriate training.
However, the company does not specify actions taken in the event of a breach of its animal welfare policy.
Animal welfare is a strategic priority within the company's Research and Development department. It collaborates on research with partners such as public institutes, universities, and technical centres. Projects aim to improve animal welfare by evaluating behaviour, finding alternatives to chick culling, testing slow-growing breeds, and enhancing environmental conditions. Research also includes improving natural light, outdoor access, and seeking alternatives to antibiotics, such as vaccinations, probiotics, or plant-based additives in feed.
1.5/2
Key Welfare Issues
The company is committed to reducing close confinement in its poultry operations. It has decreased stocking densities by 10% from historical levels to an average of 36 kg/m², below the industry standard of 42 kg/m². Over 20% of chickens have access to outdoor ranges. By 2025, all partner farms are expected to meet the European Chicken Commitment standards for natural light and enhanced environments. In FY2022, 23% of chickens were raised at densities lower than 30 kg/m².
The company demonstrates a strong commitment to avoiding routine mutilations, with 89% of all animals raised and slaughtered in 2023 being free from such practices. It is developing alternatives to traditional methods like beak trimming and claw treatment for chickens, turkeys, and ducks. Some procedures, such as caponing, are still performed, but only when necessary and under strict veterinary supervision.
The company is committed to reducing animal transportation times by situating slaughter sites near breeding grounds, resulting in an average transport time of less than 3 hours and a maximum limit of 8 hours.
The company ensures humane slaughter practices, with all animals adequately stunned using techniques like electronarcosis and controlled atmosphere stunning, applicable even in ritual slaughter. These practices are monitored by trained operators, with continuous investment in technique and facility improvement.
The company provides enriched environments for poultry to enable natural behaviours, offering species-specific features such as perches, platforms, and pecking substrates.
The company is testing new strains and developing slow-growing, hardy breeds to overcome anatomical and metabolic challenges. Additionally, 26% of its chickens comply with the RSPCA protocol.
2.5/3
Assurance & Certification
50/100
Auditing & Assurance by an Animal Welfare Organisation
The company reports that, as of 2023, 80% of its partner poultry farms hold certifications such as AOP (Appellation d'Origine Protégée), organic, Label Rouge, free-range chicken certification, ECC (European Chicken Commitment), or the Nature d’Éleveurs programme. The company aims for all partner chicken farms to be certified by the end of 2025.
2/4
Public Reporting on Welfare
The company reported mixed animal welfare results for 2022. The percentage of chickens from breeds compatible with the RSPCA protocol decreased from 32% in 2021 to 26% in 2022. However, the percentage of chickens raised at densities under 30 kg/m² increased slightly from 22% to 23%. Additionally, the average maximum instantaneous density decreased from 36.6 kg/m² to 36 kg/m². Improvements were also noted in the percentage of chickens raised in enriched environments with natural light, rising from 48% to 52%, and those with access to perching and pecking substrates increased from 50% to 53%.
0.5/1
Performance on Key Material Risks
48/100
Performance on Key Material Welfare Risks by Protein
The company has implemented several welfare practices in its broiler chicken operations. Notably, 23% of chickens are raised at densities below 30 kg/m², and all chickens are stunned before slaughter, with 41% undergoing controlled atmospheric stunning. Additionally, 26% of the poultry is from higher welfare breeds. Furthermore, 52% of chickens are housed in environments enriched with natural light, and 53% have access to perching and pecking substrates.
However, the company does not disclose information addressing welfare risks for laying hens.
2.38/5
Working Conditions
37/100
Human Rights
30/100
Strength of Policy
The company states that its Ethical Principles align with the Universal Declaration of Human Rights, ILO conventions, OECD Guidelines for Multinational Enterprises, and UN Global Compact commitments.
1/1
Due Diligence Process
The company has introduced a 'vigilance plan' to identify and prevent serious abuses of human rights, fundamental freedoms, health and safety, and the environment within its operations, controlled entities, and supply chain. While it assesses risks based on severity, potential frequency, and current controls, it does not provide details on the process for assessing actual and potential human rights risks. Additionally, the company does not disclose how it monitors or evaluates adherence to human rights, or how it determines and implements actions when risks are identified. Moreover, it lacks transparency on how it mitigates risk and provides remediation for affected individuals or communities.
0.5/3
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
33/100
Policy for Direct Operations
The company prohibits child labour, forced labour, harassment, and discrimination. Its staff agreements include pay and incentive arrangements for fair pay and profit sharing, though it is unclear if all employees receive a living wage or sick pay. The company does not disclose if it audits compliance with these policies in its direct operations.
It promotes its Ethical Principles with suppliers, addressing the prohibition of child labour, forced labour, and discrimination, but does not cover promoting living wages or prohibiting harassment.
1.4/3
Monitoring & Discosure
The company does not report conducting audits of its supply chain policies. Although grievance mechanisms exist within its direct operations, anonymous complaints are only permitted in exceptional circumstances, with an unclear submission process and review procedure. It is uncertain whether suppliers have access to a grievance mechanism, and the company does not report the number of grievances received.
0.25/2
Safety & Turnover Data
35/100
Committee representation of workers
The company states its aim to create a safe workplace, supported by a Health and Safety steering committee that implements and monitors a risk action plan with relevant indicators. However, it lacks disclosure on occupational health and safety certifications and does not specify the number or percentage of facilities with committees composed of worker representatives. Additionally, the company does not disclose assessments of antimicrobial resistance risks for the workforce.
0.5/2
Disclosure of safety and turnover data
The company reports a decrease in its occupational accident and disease frequency rate from 38.2 in FY2022 to 35.6 in FY2023. However, it does not disclose fatality data or rates for either the reporting or previous years, nor does it disclose turnover rates.
1.25/3
Freedom of Association
50/100
Strength of Policies
The company is committed to respecting freedom of association and collective bargaining but does not disclose its unionisation rate. In 2023, its collective agreements with trade unions covered staff equality, pay, bonuses, work quality, career management, arduous jobs, and remote work. However, the measures supporting employees' rights to freely associate with unions are unclear.
The company promotes its Ethical Principles in supplier relationships, which include principles supporting freedom of association and the right to collective bargaining.
1.5/3
Disclosure of Collective Bargaining Metrics
The company provides a basic statement on the right to collective bargaining but does not specify the percentage of employees represented by trade unions or covered by collective bargaining agreements. It reports that 99% are under a negotiated agreement, though it is unclear if these are through collective bargaining. Additionally, 95.9% of its workforce is full-time, 90.7% are permanent, and 25% are agency workers.
1/2
Food Safety
29/100
Food Safety System
35/100
Certifications
In FY2023, the company reported that multiple plants received certifications from FSSC 22000, BRC, and IFS, all recognised by GFSI, with 93% of its plants certified. It aims to increase this to 95% by 2025.
Food safety risks are a core component of the company's sustainability strategy, and suppliers are selected based on traceability and scientific analysis. However, the company does not specify if it requires suppliers to hold GFSI certification or disclose the proportion of suppliers with such certifications.
1.75/3.5
Performance
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.
0/1.5
Product Recalls & Market Bans
23/100
Product Recall Systems
The company acknowledges food safety risk as part of its sustainability strategy but does not address the risks of recalls or market bans. It also does not disclose the number of recalls during the reporting period.
0.12/3
Performance
The company does not disclose information on the number, locations, or details of any market bans or recalls for the reporting year. Additionally, no such events were identified in media searches.
1/2
Sustainability Governance
39/100
Assessment of a Company's Sustainability Governance
39/100
Board Sustainability
The company discloses that its CSR committee, consisting of five Supervisory Board members, assists the Board with ESG-related issues. It conducted a materiality risk assessment in 2018, identifying concerns such as sustainable farming and animal welfare, occupational health and safety, staff attraction and retention, and food waste. These risks are reviewed annually by the CSR committee and three to four times per year by a prevention panel. A double materiality assessment process began in 2023.
However, the company does not disclose board-level expertise in sustainability, food safety, or product development and innovation.
1.25/2
Incentives & Policy Engagement
The company does not disclose linking executive monetary remuneration to sustainability performance.
The company engages with major professional organisations, NGOs, and government bodies on animal welfare issues and is a member of several trade associations, including the FIA, ADEPALE, ANVOL, and AVEC.
The company has not disclosed a commitment to align its policy-engagement activities with the goal of limiting global temperature rise to 1.5°C.
0.45/2.5
Innovation & Benchmarking
The company does not disclose a strategic approach to sustainability innovation. It benchmarks itself against peers on animal welfare using the BBFAW and received a grade of 5F in 2022, with efforts underway to improve this position.
0.25/0.5
Alternative Proteins
35/100
Diversification of Products to Alternative Protein Sources
35/100
Existing product portfolio
The company offers a variety of vegetarian and plant-based products alongside meat options, including those with added plant-based proteins. However, it does not provide information on tracking and reporting revenue or sales from alternative protein sources, nor has it set a time-bound target to diversify its protein sources.
0.25/2.5
Investing for future growth
The company offers a dedicated alternative protein brand, "Le Gaulois Végétal", featuring plant-based products that mimic the look and texture of meat. The range, advertised as 100% gourmet and made from GMO-free and organic beans, includes products such as pea steaks, soy burgers, breaded soy and wheat, and soy and wheat croques with cheese. However, the company does not disclose any investments for future growth related to alternative proteins.
1.5/2.5
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Workstream Information
2024 Risk Score:
34/100
Level:
Medium Risk
Ranking:
30/60
Main Protein:
Poultry and eggs
Assessed Proteins:
Poultry and eggs
Company Feedback Given:
No
Last Updated:
19 November 2024
2024 Resources
2024/25 Company Dialogue Questions 2024/25 Methodology Mandarin Summary | Corporate Biodiversity Footprints 企业生物多样性足迹摘要 Climate Solutions Report Climate Solutions Supporting Information Corporate Biodiversity Footprints - French Webinar Corporate Biodiversity Footprints Webinar Coller FAIRR Protein Producer Index