Scandi Standard AB

The company states that it became a signatory to the Science Based Targets initiative in 2021 and has, during 2022, developed science-based climate targets for the entire value chain. These were submitted to the Science Based Targets initiative for validation. The status of the company is validated on the SBTi website.

The company commits to reducing absolute Scope 1 and 2 GHG emissions by 50% by 2030 from a 2021 base year. It also commits to reduce total Scope 3 GHG emissions from purchased goods and services, fuel and energy-related activities and upstream transportation and distribution by 50% within the same timeframe.

The company states that it actively works with suppliers to support them in reducing their energy use and transfer to non-fossil fuels. It also commits to collecting accurate emissions data from what the company describes as its "growers". They explicitly mention that these activities will help them minimise the carbon footprint of their growers.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming

The company mentions that it tests soy-free feed in Finland and Sweden, which will hope the company reduce the emissions from animal farming.

The company discloses that its Scope 1 emissions were 16,999 tCO2e, Scope 2 emissions were 12,905 tCO2e and Scope 3 emissions were 792,518 tCO2e for FY2022. Scope 1 emissions include emissions from stationary combustion, mobile emissions and fugitive emissions, all of which have been added.

The company states that its Scope 3 Category 1 Purchased goods and services category includes feed and rearing of the chickens. However, it does not disclose the exact emissions from animal farming. It states that within its Scope, three categories - purchased goods and services, among other things, feed and rearing of the chickens are included. The climate impact from the feed is calculated based on emission factors from the feed producers. In calculating the climate impact from feed, emissions related to land use change (LUC) have been included. However, emissions from feed farming are not disclosed. The calculation of the climate impact from feed includes emissions related to land use change (LUC) in Scope 3 data. However, emissions from land use change are not reported by the company.

The company responded to the CDP Climate Change questionnaire in 2022. It mentions that an external auditor - PwC, provides limited assurance of the sustainability report.

The company disclosed total emissions as 822,423 Tonnes CO2e for FY2022 and 880,155 Tonnes CO2e for FY2021. Thus, there is a decrease of greater than 3.03%.

The company discusses a climate-related risk assessment for its entire value chain. It states that it initiated this process to identify, evaluate and report risks and opportunities linked to climate change in accordance with the TCFD reporting framework in 2022.

The company mentions that extreme weather conditions such as drought and floods can impact the health and growth of chickens, reduce water availability, reduce grain production and damage production facilities. It mentions that increasing feed efficiency is a focus area and that it has initiated a project to shift from internationally sourced soy to locally sourced protein sources. The company's CDP Climate survey discusses how increased electricity and energy demands affect the company's operations. It also mentions using more efficient machinery, undertaking energy optimisation projects and buying green energy to mitigate this impact. It considers carbon taxes a risk and anticipates developing an internal carbon price in the next three years. However, it does not discuss mitigation measures.

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

The company discloses that soy constitutes about 21.5% of the chickens' feed. It states that soy is linked to biodiversity-related risks and is working actively to decrease such rischances sourcing responsibly produced soy. Scandi discloses that 75% of the soy it sources has some type of sustainability certification, including ProTerra and RTRS, and that only its Danish operations utilise soy that is not 100% certified. The company annually conducts forest-related risk assessments as part of its company-wide risk assess, mainly covering the entire supply chain. It uses internal and external methods such as RTRs, ProTerra systems, and sector/company-specific frameworks for risk assessment. However, the company does not discuss identifying high-risk locations for its sourcing. The soybean meal used in its mill originates from Paraguay. Soy included in the feed purchased primarily originates from Paraguay, Brazil and the US.

Within its environmental policy the company states that it aims to source 100% certified soy by 2025.

The company's commitment covers 100% of soy sourced by its Danish subsidiary.

The company reports that in 2022, 75% of its soy was certified. Scandi states that a third-party auditor has verified data in its annual report. However, it also discloses that it does not verify data reported in its CDP disclosure. Scandi responded to the CDP Forests questionnaire in 2022.

The company mentions that all suppliers shall identify potential negative impacts on biodiversity and be able to present relevant policies and action plans. Scandi engages with its direct soy suppliers through a pilot project on replacing soy with protein sources. However, the company does not mention providing any financial incentive or technical support to address deforestation.

The company mentions that significant or part of the soy used in its feed is third-party certified according to CRS (Ireland) or RTRS/Proterra (Sweden, Norway, Finland, Denmark (partly)). However, it does not yet have comprehensive certification or monitoring for feed used by its Danish growers. It mentions that the certification bodies define and execute the response to supplier non-compliance; however, not all soy suppliers are certified. Scandi reports that 100% of soy is traceable to the mill level. However, it is unclear if the company can trace soy to its exact origin or through its indirect suppliers.

The company is working on replacing imported soy with other local protein sourced. It developed a strategic plan with feed specialists to create and test new feed mixes, where locally grown proteins replace a significant part of the soy. The company also states that this has resulted in maintaining animal welfare and productivity in small-scale tests, and the first tests are now being conducted on a production scale.

The company states that none of its production sites or growers are in areas with direct water shortages. It also discloses the result of an assessment of its production sites and contract farms, stating that these are not located in high or moderate-risk areas. However, this does not clarify if operations are located in regions of low-medium water risk. As such, the disclosure does not guarantee that all facilities are located in areas of low water stress. It discloses its water consumption in 2022 and discusses the ongoing work undertaken to optimise its water use. The company discloses that it aims to reduce water consumption in its slaughtering, processing and packaging operations.

The company states that it sets local targets for water consumption annually and that progress towards these targets aisfollowed up monthly. However, no further information is disclosed about these local targets.

The company states that its facilities do not operate in areas with water shortages. However, the company does not disclose information regarding water withdrawals/consumption by water stress level. Water-related data within the company report has been audited. The company reports a decrease in its water use in 2022.

The company writes of the importance of water efficiency throughout the value chain but does not explicitly discuss water scarcity 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.

The company does not disclose the proportion of animal protein commodities produced and/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 has not established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company states that its main direct environmental impacts are noise, emissions into the air and water, and temporary storage of hazardous waste. However, it does not report any violations or penalties against the company. The company discloses that information regarding compliance with laws and regulations is not currently available. However, it states that work is ongoing to make reporting of this information available. Scandi mentions it has targets for water volume and quality but does not disclose further details. It is also unclear if the company's volume target relates to waste water or water use in general.

Scandi states that local authorities have set extensive requirements on the quality of wastewater, which is checked by monitoring the content of nitrogen, phosphorous, pH, and the Biological Oxygen Demand (BOD) of the wastewater. It also states that five of the Group's plants currently have treatment plants that treat wastewater from the slaughtering and processing of chicken. However, the company does not disclose the quality of wastewater discharged in the reporting year.

The company discloses that animal by-products such as feathers, offcuts and offal are used in the production of biofuel and animal feed.

Although the company runs poultry feed operations in Ireland and sources ingredients for animal feed, it does not disclose information relating to nutrient management in feed farming. The Supplier Code of Conduct includes a high-level statement on environmental responsibility, stipulating that suppliers must actively work to reduce emissions into soil and waterways. However, no further information is provided, and how this is controlled or verified is unclear. Scandi discloses that it wants to collaborate with feed producers to ensure that soy purchased is traceable and sustainably produced. Still, it is unclear if this relates to 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.

The company mentions that it encourages its growers to use fossil-free fuels for the operation of farms and to reuse chicken manure as organic fertiliser replacing chemical fertiliser and thereby improving the soils and reducing climate impact.

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.

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.

The company commits to a stringent antibiotics policy, administering them only in cases of significant bacteriological issues or to alleviate animal suffering, strictly under veterinary prescription. It further prohibits using medically and critically essential antibiotics for therapeutic purposes. It bans the routine use of all antibiotics across all entities and supply chains within the group. However, it falls short in detailing explicit measures for minimising antibiotic use.

The company reports a three-year reduction in the percentage of animals receiving antibiotics, from 11% in 2019 to 5.2% in 2021, but indicates a rise to 10.8% in 2022. The data reveals performance deterioration in 2022, attributed to the lower quality of day-old chicks and restricted advisory capabilities during the Covid-19 pandemic.

The company commits to the Five Freedoms for animal welfare in its group-wide policy, which extends to the supply chain. Employee training in animal welfare is mandatory, and in 2022, specific programmes were initiated in Ireland. However, it does not disclose actions for policy breaches.

The company commits to avoiding close confinement by ensuring its flocks have sufficient pen space. It prohibits routine mutilations like beak trimming. During transport, temperature-controlled ventilation and the average transport time are maintained at 1.4 hours, well below the statutory maximum. Controlled Atmosphere Stunning (CAS) is the primary method used for slaughter. However, although it provides basic amenities such as straw beds and good lighting, it does not offer an enriched environment. Additionally, it does not explicitly exclude breeds prone to disorders due to production traits.

The company commits to regularly monitoring and auditing its suppliers for quality and animal welfare, but it does not operate any farms. However, it does not disclose whether individual suppliers or contract farms hold certifications.

The company reports on animal health data, including foot health measured with foot points, transportation time, and mortality rate for FY2022. It shows a decline in the use of antibiotics, rearing mortality, and foot score.

The company utilises carbon dioxide gas for stunning chickens and commits to higher welfare breeds, with 15% of its broiler chickens being slow-growing breeds like Ranger Gold and Hubbard. It also maintains that its average density complies with EU guidelines. However, the company exceeds the 30kg/m² maximum guideline for flock density, and there is no disclosure on limiting the thickness to 9 hens/m², using nest boxes, or prohibiting cages and barren environments.

The company is a signatory to the UN Global Compact and commits in writing to respect all internationally recognised human rights articulated by the core ILO conventions.

The company discloses that it conducts human rights risk screening at the supplier level based on risk parameters such as production country and category/industry-specific risks. The company also evaluates its suppliers against the Supplier Code of Conduct, which includes human rights. This involves suppliers completing a self-assessment form informing the company where it does not focus its work on additional monitoring, audits and other initiatives. However, the company must mention conducting initial audits, considered more thorough than self-assessment surveys. Moreover, it must disclose how it identifies, assesses and monitors operational risks. Regarding risk mitigation, the company states that employees are trained in the Code of Conduct, which covers human rights. In 2022, 97% of employees received training on the company's code of conduct. However, the company does not mention mitigation or remediation measures for its supply chain.

The company does not disclose any risks identified through a human rights due diligence process.

The company commits in writing to prohibit child labour, forced labour, discrimination and harassment in its operations and supply chain. However, the company does not disclose how it monitors compliance with these policies or commits to promoting fair wages. Also, the company does not discuss how its workers receive paid sick leave in its public disclosure.

It is still being determined if the company conducts audits of its human rights policies. The company has set up a whistleblowing system in collaboration with an external company, which enables employees to report potential violations of the Code of Conduct anonymously. However, it must disclose whether it was designed in consultation with relevant stakeholders such as employees or unions. Further, the company's whistleblowing channel is not available to suppliers. The company reports that in 2022, 19 cases were reported through the whistleblowing service. The reports were related to local employment issues, leadership issues and policy compliance, but the company does not fully categorise the 19 grievances received.

The company has an explicit health and safety policy that ensures compliance with relevant legislation and standards. In addition, production operations in Denmark are ­certified according to ISO45001. The company states that an important part of health and safety management is regular dialogue between employees and the leadership teams at each production site, providing the example of health and safety committees. However, the company does not explicitly state that it uses such committees.

The company reports that the lost time injury frequency rate fell 30% from 39.2 in 2021 to 27.4 in 2022. Also, the company's fatality rate has remained zero since the last reporting year. However, the company does not disclose turnover data for the reporting period.

The company mentions that it respects the right of its employees to form or join trade unions but does not disclose the unionisation rate or actions taken to support these rights. In addition, the company states that suppliers must respect their employees’ right to form or join trade unions and allow employees to engage in collective bargaining agreements.

The company reports the percentage of workers covered by collective bargaining in the different countries where it operates: Sweden (98%), Denmark (99%), Norway (90%), Ireland (91%), and Finland (99%). The company also discloses its full-time, part-time, permanent, temporary, contractual and non-guaranteed hours employees for its overall operations.

The company discloses that owned facilities have the BRCGS certification and were graded AA and A in 2022. Further, it states that 100% of production facilities hold third-party accreditation by BRC or IFS for food safety. These are GFSI-recognised. However, it does not disclose whether suppliers are expected to have GFSI certification.

The company conducts daily self-checks based on HACCP, a standardised method for identifying, assessing and controlling risks to ensure food safety for the consumer. However, it does not disclose the number or frequency of food safety audits and the scope of operations covered. Further, it does not disclose the corrective action rate. It does not confirm whether it is developing, or has developed, a consumer-facing technology for food safety.

The company states that it recalls any products that entail a risk to the consumer. It reports two critical complaints and zero product recalls in 2022. It is deemed that the company has a product recall system in place. However, the company does not further describe the recall system.

The company does not disclose information related to market bans in the reporting period, and none were detected in media screening.

The company has a sustainability director responsible for defining strategies and goals and coordinating and supporting the implementation of said strategies in the organisation. Additionally, the company has established a sustainability steering committee comprised of several board members, including the head of sustainability. In addition, The company conducted a materiality analysis in 2017 and states that 2022 is the first year a list of material issues is presented. Compared to 2021, health and nutrition, water, and biodiversity have increased in importance. The company identified health and safety, quality and food safety, animal welfare and the local environment at its production sites as key material topics. The board is responsible for identifying how risks linked to sustainability and opportunities impact the company and is primarily involved in the materiality analysis through the reporting process. However, the company must report holding board-level expertise in sustainability, food safety or innovation.

The company states that since 2020, sustainability goals and KPIs have formed a part of the bonus-based goals and 10% of the variable compensation is linked to achieving sustainability-linked KPIs. The company regularly contacts authorities and legislators on material topics such as animal welfare and the local environment at its production sites. However, the company does not disclose engaging trade or civil associations on other ESG issues or a complete list of trade association memberships. Further, it does not align its policy-engagement strategy to restrict global temperature rise to 1.5°C. Still, it plans to have a public commitment within the next two years.

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 states that an increasing number of people are making conscious decisions and choosing foods from a health point of view and regarding the environment. This is driving the development of plant-based foods. However, it does not disclose a timebound target to diversify protein sources or report sales/revenue linked to alternative protein sources.

The company states it views plant-based chicken products as a complement to animal protein and has launched plant-based products in Norway and Denmark in 2021. In 2020, it partnered with Veg of Lund AB in a two-year research and development project for a new plant-based protein with a taste and texture similar to chicken. However, it has not since provided an update on this collaboration.