Prima Meat Packers Ltd

The company has set a target to reduce carbon emissions from fossil fuel combustion in Japan by 24.3% by 2030 compared to 2021, although this target has not been validated by the Science Based Targets initiative (SBTi). Additionally, the company lacks a specific methane emission reduction target related to animal farming.

The company aims to reduce carbon emissions from fossil fuel combustion by 24.3% by 2030, compared to 2021, though this target is limited to its Japanese operations and excludes emissions from livestock. Given its procurement of beef, pork, and chicken, Scope 3 agricultural emissions are relevant. Despite recognising the importance of including Scope 3 emissions in its environmental assessment, the company has not set a target for 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 aims to reduce GHG emissions by improving production efficiency, switching to energy-efficient equipment, and using cleaner fuel in its plants. It also employs a natural coolant in refrigeration and freezing processes.

In its 2023 Integrated Report, the company discloses Scope 1 emissions as 140,251 tCO2 and Scope 2 emissions as 102,790 tCO2 for 2022. The 2023 TCFD report reveals that Scope 3 emissions were 3,017,482 tCO2e, limited to direct operations only, indicating a restricted geographic scope.

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 latest CDP Climate Change questionnaire. Its Scope 1 and 2 emissions for the entire group are audited by KPMG Azusa.

The company reports an increase in total emissions (Scope 1 and 2) from 242,365 tCO2 in FY2021 to 243,041 tCO2 in FY2022. Over the period from FY2020 to FY2022, emissions rose by 2.5% from 237,014 tCO2, indicating an average annual increase of 1.3%. The company discloses its Scope 1, 2, and 3 emissions for 2022 as 140,251 tCO2e, 102,790 tCO2e, and 3,017,482 tCO2e, respectively. However, it does not provide emissions data from feed, enteric fermentation, or manure management.

The company has adopted the Climate-Related Financial Disclosure reporting framework and conducts scenario analysis as part of this process.

The company acknowledges climate-related risks associated with animal feed costs and rising temperatures, leading to poorer livestock conditions and meat quality. However, it has not defined any plans to mitigate these risks or adapt to increased temperatures. The company recognises the financial impact of increased medicine costs due to climate change but does not address veterinary cost management or mitigation plans. Regarding energy-related costs, the company plans to invest more in energy-efficient and renewable technologies. It notes the potential tax burden from reductions in GHG emissions but does not discuss carbon tax risks on electricity or animal protein. Moreover, the company does not disclose the number of financially material events attributable to climate risk.

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 has disclosed information in the CDP Forests Questionnaire 2023.

The company does not disclose whether all sourced cattle come from regions free of deforestation risk. Additionally, it has not conducted a risk assessment or identified all high-risk locations.

The company does not report having a deforestation/conversion-free target for cattle.

The company has provided information in the CDP Forests Questionnaire 2023.

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.

Deforestation is not referenced in the company's supplier code of conduct. Furthermore, the company does not disclose providing support to cattle producers to encourage deforestation-free production or improve traceability.

The company does not disclose how compliance is monitored or the actions taken when non-compliance is detected. However, it reports that 100% of cattle products are traceable to the country of origin and has not been publicly linked to deforestation in the reporting year.

The company does not disclose information regarding innovative and sustainable farming practices implemented to improve biodiversity and soil health.

The company assesses water stress at 149 sites using the WRI's Aqueduct Water Stress Index (2040, pessimistic scenario). It found that 21 sites, including one overseas and 20 domestic, face extremely high water stress (>80%), though these account for only 2.2% of the total water intake. Locations with high or medium water stress are identified across Japan and Singapore. The company's 2023 Integrated Report states its water consumption was 5,610,000 m3 for 2022.

In its last reporting year, the company aimed to reduce water consumption intensity to 14.3 m3/tonne across four plants by 2023. However, this target was not mentioned in the current reporting period. Instead, the company has introduced a new KPI to reduce water usage by 3% per unit of production by 2030. The company has not set a target to reduce water withdrawals at its facilities but indicated in its 2023 CDP Water Questionnaire that it plans to establish water-related targets within the next two years.

For the first time, the company discloses total water withdrawals of 5,610.8 megalitres, comprising 40.3 megalitres from fresh surface water, 3,446.0 megalitres from renewable groundwater, and 2,123.5 megalitres from third-party sources. It also reports that 1-10% of this water is withdrawn from water-stressed areas. The company does not disclose water-related CAPEX or OPEX, and there is no evidence of third-party audit of its water data. It has responded to the CDP Water Security 2023 questionnaire. Water consumption decreased from 5,703 thousand m³ in 2021 to 5,610 thousand m³ in 2022. As this is the first period of disclosure, there is no historic withdrawal data for comparison.

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 monitors the volume and quality of wastewater discharge in compliance with laws, regulations, and voluntary standards, emitting 6.9 metric tonnes of phosphates in the reporting year. However, it does not disclose standard effluent metrics for wastewater quality. The company reports water discharge of 2,491.4 megalitres into fresh surface water, 15.6 megalitres into groundwater, and 1,892.5 megalitres to third-party destinations. Its non-financial metrics have not been audited by a third party. The company has responded to the CDP Water Security 2023.

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 provides pig manure to local farmers to enhance soil fertility but does not disclose further details on this initiative. Additionally, it does not conduct quality risk assessments to identify high-risk locations, relying solely on stress evaluations using the WR Aqueduct tool.

The company does not make site-specific nutrient management plans part of its supplier’s contractual agreement or its own farms management. Nor does it provide technical or financial support to suppliers or its own farms to develop nutrient management plans and improve manure storage.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company offers an antibiotic-free pork product line, sourced from pigs raised on farms operated by its Group company, Pacific Ocean Breeding. It employs digital technologies to monitor swine biodata and environmental conditions, enforcing strict biosecurity protocols such as separate barns and designated disinfection stations for trucks and personnel items.

The company does not disclose the quantity of antibiotics used.

The company demonstrates its commitment to animal welfare through initiatives such as phasing out conventional gestation crates and upholding high feed standards. It also addresses disease management and hygiene, placing emphasis on the comprehensive well-being of its animals, including environmental and living conditions. However, the company does not provide information on employee training specific to animal welfare issues or actions taken following breaches of its animal welfare policy. Additionally, there is no evidence of research and development programmes aimed at advancing animal welfare.

The company does not state a commitment to engaging and training employees on animal welfare issues.

The company does not disclose information on animal welfare certifications or farm assurance programs.

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 discloses a comprehensive policy commitment to respect internationally recognised human rights as outlined in the International Bill of Human Rights and core ILO 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 discloses its commitment to prohibiting child labour, forced labour, and discrimination, but does not disclose a commitment to providing employees with sick pay or a living wage. It performs internal audits but does not specify if these include human rights audits. The company's supplier code of conduct prohibits discrimination, harassment, child labour, and forced labour. Although it requires suppliers to provide fair wages, it does not mandate wages aligned with the cost of living.

The company does not discuss whether it has conducted supplier audits covering human rights or if it has a grievance reporting mechanism open to employees or external stakeholders.

The company is committed to maintaining employee health and safety through regular training in safety awareness. However, it does not mention holding a health and safety certification or having health and safety committees with worker representatives. Additionally, there is no evidence of assessment for antimicrobial resistance risk for the workforce.

The company does not disclose injury or fatality data for the reporting year, nor for previous years. It reports a turnover rate of zero for 2022 but does not disaggregate this by levels of seniority.

The company commits to respecting workers' rights to collective bargaining and freedom of association. However, it does not provide evidence of supporting these rights. Its supplier code of conduct requires business partners to respect both freedom of association and collective bargaining rights.

The company commits to respecting workers' rights to collective bargaining and freedom of association but does not disclose the distribution of its workforce across existing contractual agreements.

The company complies with international food safety standards, including FSSC 22000 and ISO 22000, with 16 of its sites certified under FSSC 22000 and 15 under ISO 22000. However, without the total number of facilities, the proportion of certified sites cannot be determined. The company states that its suppliers in Thailand adhere to the Japanese Agricultural Standard (JAS) but does not specify if these suppliers must obtain Global Food Safety Initiative (GFSI) certification. Additionally, the company does not disclose the proportion of suppliers with GFSI certifications.

The company does not report the number or frequency of food safety audits conducted during the reporting year. It also does not specify associated corrective action rates, nor does it disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company acknowledges food safety as a significant risk and commits to promptly notifying the public and implementing corrective and preventive measures in case of an incident. However, it does not provide details on product recall procedures or confirm the existence of a recall system. Additionally, it does not disclose the number of recalls in the reporting period.

The company does not disclose information on product recalls or market bans. Additionally, no such incidents were detected in media screenings during the reporting period.

The company has established a Sustainability Committee, chaired by the President and CEO, and includes division heads and relevant department leaders, to prioritise sustainability in management. The committee submits regular reports on significant inquiries to the Board of Directors. In 2023, the company revised its materiality assessment to include the reduction of water and plastic use, as well as biodiversity preservation. The Board is involved in identifying material issues and setting key performance indicators based on these issues. The company discloses a skill matrix for its board members, indicating that two outside directors possess expertise in sustainability and human capital. However, there is no disclosure stating expertise in food safety, product development, or innovation among board members or executives.

The company does not disclose executive monetary remuneration linked to climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues, providing a comprehensive list of trade association memberships, or aligning any policy engagement activities with the goal of restricting global temperature rise to 1.5°C.

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 aims to become a provider of diverse protein sources, including plant-based, cultured meat, and insect proteins, to meet the growing global protein demand. It regards alternative proteins as low-emission products and a climate-related opportunity. A PEST analysis in late 2022 identified these proteins as a technological factor to address socio-environmental risks. However, no sales data linked to these alternative sources has been reported. While the CEO envisions transitioning from a "meat" company to a broad protein provider by 2031, the company lacks a specific timebound target for diversifying its protein offerings.

In the fiscal year 2021, the company launched its plant-based brand 'Try Veggie', featuring soy-based meat alternatives. Previously, the company announced plans to develop non-soy-based alternatives and explore other protein sources. In the current reporting year, the company outlines its medium and long-term strategy to transition from a meat company to a general protein provider, including plant, cultured meat, and insect protein sources. It emphasises the role of technological expertise in this transformation but does not detail specific activities supporting the growth of alternative proteins. The company is encouraged to provide detailed disclosures in the next reporting year.