Thai Union Group PCL

The company aims to reduce Scope 1, 2, and 3 emissions by 42% by 2030, with a long-term goal of a 90% reduction by 2050, using 2021 as the base year. Scope 3 emissions account for 90.5% of the company's total emissions, necessitating the setting of a specific target for their reduction.

The company has set Science-Based Targets initiative (SBTi)-aligned goals to achieve net zero by 2050, in line with the 1.5°C scenario.

The company has incorporated Responsible Agriculture into its global sustainability strategy, focusing on the impact of agriculture in its supply chain. It supports suppliers in reducing emissions, including sustainable sourcing for shrimp aquaculture. Furthermore, the company has launched a Shrimp Decarbonisation programme to enhance aquaculture sustainability and implemented a smart management system by HydroNeo to lower greenhouse gas emissions in its operations and supply chain.

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

The company states that its Shrimp Decarbonisation programme employs HydroNeo's system to reduce energy use and indirect greenhouse gas emissions, but it does not specify how many farms are implementing this system.

The company reports Scope 1 emissions as 269,031 tCO2e, Scope 2 emissions as 165,305 tCO2e, and Scope 3 emissions as 4,165,375 tCO2e for FY2023.

The company attributes 74% of its Scope 3 emissions to purchased goods and services, including tuna and shrimp. It is developing low-carbon shrimp feed in collaboration with Thai Union Feedmill but does not disclose GHG emissions from feed production. Additionally, the company has not disclosed GHG emissions resulting from land-use change. However, it requires all plant-based ingredients sourced by Thai Union Feedmill to comply with zero deforestation and land conversion standards from 31 January 2025. The science-based target boundary includes land-related emissions and removals from bioenergy feedstocks.

The company submitted a response to the CDP Climate Change 2023, scoring a B, but the reports are not publicly available. Its GHG inventory data is audited by LRQA.

The company reports an increase in total emissions (Scope 1, 2, and 3) from 4,031,432 tCO2e in 2022 to 4,599,711 tCO2e in 2023, an approximate rise of 14%. From FY2021 to FY2023, total emissions rose by 0.4%, with an average annual increase of 0.2%. In FY2023, biogenic emissions increased from 33,464 to 35,358 tCO2e. The specific emissions for FY2023 are detailed as 269,031 tCO2e for Scope 1, 165,305 tCO2e for Scope 2, and 4,165,375 tCO2e for Scope 3.

The company has conducted a climate-related scenario analysis based on RCP 4.5 and 8.5, covering the years 2030, 2050, and 2090. In this analysis, various transition and physical risks are identified and extensively discussed. The company also plans to carry out a more comprehensive assessment of climate change impacts on the supply of wild-caught tuna, shrimp aquaculture production, and the potential risks to its supply chains in the future.

The company recognises that climate change presents acute physical risks, potentially disrupting supply chains. Coastal floods may affect shrimp farming near coastlines, leading to supply shortages and increased procurement costs. Rising water temperatures could negatively impact shrimp aquaculture due to higher evaporation rates increasing pond salinity, affecting growth and increasing disease outbreaks, resulting in lower yields. The company plans to conduct more detailed assessments but does not mention feed, veterinary, or medicine costs. It acknowledges that adopting renewable energy can reduce costs related to traditional fuels which may be more expensive. While renewable energy implementation might increase capital expenditures initially, it is expected to result in long-term operational savings. The company is committed to reducing GHG emissions and managing carbon pricing risks from stricter regulations. It aims to develop location-specific climate risk and opportunity metrics, including internal carbon pricing. However, it does not disclose the number of financially material events attributed 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 commits to achieving 100% certified soy, ensuring zero deforestation and conversion across its entire supply chain by 2030. However, it does not disclose a cut-off date for this commitment.

The company's commitment targets zero deforestation and conversion throughout its supply chain, focusing on all sourcing areas at risk. However, this only applies to soy sourced by its Thailand-based feed mills and does not cover all soy the company procures.

The company reports a 1% progress towards its target to certify 100% of its soy for zero deforestation and conversion by 2030. However, it has not disclosed if this progress has been verified by a third party. Additionally, the company did not respond to the CDP Forest Questionnaire 2023.

The company expects suppliers to procure RTRS-certified soy whenever feasible, according to its raw material sourcing guidelines. It intends to invest in sustainability technologies and practices, focusing on supply chain transparency. However, it does not provide details on supporting soy producers for deforestation-free practices or enhancing traceability efforts.

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 is working to elevate farm standards among its shrimp suppliers towards international certifications such as BAP and ASC, as well as other customer-specific certifications. However, it does not disclose the total number of certified farms, suggesting partial certification coverage. Additionally, the company does not specify which farms hold each certification in its report, although this information is available to the public through ASC and BAP disclosures.

The company does not disclose the percentage breakdown of feed ingredients used. While it expects suppliers to adhere to international agricultural and industry standards, including RTRS certification for soy and MSC or IFFO RS certification for marine products, only 1% of its soy was certified in 2023. It does not report the percentage of certified marine ingredients. Furthermore, the company has not provided details on its dependency on forage fish for fish meal and fish oil, nor does it disclose forage fish dependency ratios by operating region.

The company does not disclose information about the sourcing of fishmeal and fish oil used in its feed basket, nor does it specify whether marine and soy ingredients are 100% certified. Furthermore, the company does not provide information on improvements in feed conversion efficiency or its reliance on foraged fish during the reporting period.

The company has invested in Mara Renewables to diversify omega-3 sources from algae and in French startup Algama to expand its alternative protein business and explore specialised marine ingredients. It has implemented circular economy principles in waste management to minimise production waste and maximise resource utilisation, including using food leftovers for animal feed. However, the company does not disclose its stance on using seafood trimmings in aquafeed or plans for future inclusion. Additionally, no strategy has been disclosed for increasing the use of alternative feed ingredients, such as algae, insects, or single-cell proteins. There is also no evidence of a risk assessment regarding the future impact of marine and soy ingredient availability on production.

The company does not disclose the percentage of R&D allocated to novel ingredient development. Furthermore, it does not disclose a target related to feed innovation. It also does not disclose the average EPA and DHA content of salmon it produces.

The company does not disclose any information on sea lice counts or compliance with regulatory limits.

The company does not discuss non-medicinal or non-chemical approaches taken to prevent sea lice infestation. It does not disclose investment into cleaner fish husbandry or disclose the mortalities of cleaner fish used.

The company does not disclose data on escapes, nor does it disclose the financial cost of all escape events or provide a discussion on escapement prevention. Finally, the company does not disclose a time-bound target for zero escapes.

By 2030, the company plans to implement best practices to protect endangered, threatened, and protected species. During the current reporting period, it conducted a bycatch audit in collaboration with Birdlife International and Whale and Dolphin Conservation, identifying high-priority areas and developing Fishery Improvement Projects for tuna fleets. Additionally, the company is involved in mangrove restoration and rubbish removal projects in countries such as Thailand, Ghana, Portugal, Italy, and France. However, it does not disclose information on eliminating human-wildlife conflict or set a time-bound target for achieving this goal.

The company does not disclose a management plan in the event of algal blooms.

The company reports a total water withdrawal of 0.22 million cubic metres from water-stressed areas, as assessed using the AQUEDUCT tool by the World Resources Institute. The classification of water stress is determined at the country level, identifying areas as either High Level (40%-80%) or Extremely High level (>80%), though specific site locations are not disclosed. The company projects water consumption of 4.10 million cubic metres for 2023. It outlines water reuse and recycling strategies, including the use of recycled water for toilets, cooling, and cleaning. Wastewater treatment upgrades have been made in Seychelles and Ghana, and there are plans to install advanced recycling systems by 2025-2026 to achieve zero discharge by 2030.

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

The company reports a decrease in total water withdrawals from 12.15 million m³ in FY2022 to 9.65 million m³ in 2023. However, water consumption increased from 3.95 million m³ to 4.10 million m³ over the same period. The company specifies withdrawals from various sources, including freshwater (8.27 million m³), groundwater (2.23 million m³), surface water (0.54 million m³), municipal water (5.16 million m³), collected rainwater (0.34 million m³), and third-party sources (5.16 million m³). From water-stressed areas, it reports withdrawals of 0.22 million m³ and consumption of 0.1 million m³ in 2023. While the company does not disclose water-related CAPEX or OPEX, its data on water withdrawal, discharge, and consumption is audited by LRQA. The company has not responded to the CDP Water Questionnaire in 2023.

The company's Agricultural Raw Material Sourcing Guidelines show a preference for local raw material sources to minimise costs, emissions, and water consumption. Regarding water risk, the company collaborates with its critical Tier 1 suppliers through its Sustainable Supply Chain Management. This involves education and supplier audits, focusing primarily on the risk of untreated connected wastewater rather than water use in feed. The company has not disclosed any partnerships with third parties to support its sourcing or farming strategy concerning water use in feed.

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 percentage of animal protein commodities produced or sourced from water-stressed regions. While it recognises agriculture's role in food production and the challenges of excessive water use, it does not explicitly address water scarcity in farming within its policies, such as the Aquaculture Responsible Resourcing Guideline. The company is committed to Responsible Agriculture within its sustainability strategy and discusses water reuse and recycling initiatives. In its climate adaptation focus, it highlights developing site-level impact assessments, particularly for water scarcity. The company has implemented a pilot project at its fish plant in Thailand across five factories, successfully reducing daily water consumption from 7 million litres to 4 million litres through Ultrafiltration and Reverse Osmosis. These technologies not only enhance water quality but also enable water reuse, recycling, and recovery, achieving significant annual cost savings of approximately THB 27.8 million.

The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company does not disclose incidences of non-compliance with water quality permits, standards, and regulations. It has conducted water-related risk assessments for its manufacturing sites and critical Tier 1 suppliers using the Aqueduct Water Risk Atlas 3.0 by the World Resources Institute, identifying all 69 suppliers in areas with "Untreated Connected Wastewater," indicating water quality risks. The company reports that 3% of its manufacturing facilities are in regions with high overall water stress, considering both water quality and scarcity risks, but it does not disclose specific locations. It has not discussed setting a water-related quality target, although it aims to achieve zero water discharge by 2030.

The company reports 5.56 million m3 of wastewater discharged in 2023, with data audited by LRQA. However, it does not disclose the quality of the discharged wastewater. The company has responded to CDP Water Security 2023.

The company reports diverting wastewater sludge from landfill to be composted into fertiliser. It also indicates a reduction in wastewater discharged from 8.20 million m3 in 2022 to 5.56 million m3 in 2023. However, it does not provide wastewater quality data for comparison.

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 has not disclosed information on investments in sustainable feed production for improved nutrient management. However, its Responsible Sourcing Guidelines aim to reduce agrochemical use and prohibit hazardous pesticides. Suppliers of agricultural ingredients are also required to avoid using hazardous pesticides.

The company conducted a risk assessment using the Aqueduct Water Risk Atlas 3.0, created by the World Resources Institute, which included its Tier 1 suppliers to address water-related issues. It was found that 69 critical Tier 1 suppliers are located in areas impacted by "Untreated Connected Wastewater." The company has not disclosed the metrics or methods for measuring organic or inorganic loading. Additionally, the percentage and locations of sites exceeding local environmental carrying capacity by country are not disclosed. The company’s Aquaculture Responsible Sourcing Guidelines suggest that suppliers may need to reduce environmental impacts through Aquaculture Improvement Projects (AIPs), targeting waste and effluent management. However, the company does not explicitly disclose strategies for eliminating faecal matter and uneaten feed on the seabed. The company states it diverts wastewater sludge from landfill for composting into fertiliser and confirms no sludge discharge to public waterways on its ASC-certified farms. It also discloses nitrogen and phosphorus levels in its ASC Audit report.

The company reports that water from its permanently aerated ponds is treated before discharge, with settleable solids in effluent water within the ASC limit of <3.3mL/L. However, it does not provide information on achieving a neutral impact on water or evidence of a community engagement plan concerning pollution around aquaculture farms.

The company has an antibiotics policy that prohibits the use of antibiotics and growth-promoting substances in aquaculture, specifically those classified as critically important for human medicine by the WHO. This policy applies across all aquaculture operations and the supply chain, allowing antibiotics only for therapeutic purposes. Suppliers must maintain detailed records of any therapeutic antibiotics or chemicals used. The company has begun a project to promote responsible antibiotic use in shrimp farming, focusing on developing principles, piloting interventions, and establishing metrics for progress. However, it does not disclose specific measures to reduce the need for antibiotics.

The company requires suppliers to keep detailed records of antibiotics or other chemicals used therapeutically, but does not disclose this data publicly. It does not provide information on antibiotic quantities by type or class, the reasons for antibiotic use during the reporting period, or the number of animals treated with antibiotics. Additionally, the company does not disclose whether the data on antibiotic usage is audited by a third party.

The company emphasises its commitment to animal welfare, recognising the "Five Freedoms" for animals and undertaking initiatives for the well-being of aquatic animals. However, its approach focuses more on compliance and hygiene rather than explicitly addressing thermal and physical comfort, health and pain monitoring, or reducing fear and stress. Furthermore, the company does not disclose information on handling protocols or the use of higher welfare stunning techniques.

The company does not disclose sufficient information to ascertain if it ensures a stocking density of lower than 17 kg/m³ for salmon at all times.

The company does not disclose information regarding eye-stalk ablation of shrimp.

The company does not disclose mortality rates or incident-based mortality information and has not set a time-bound target for reducing mortality rates.

The company does not disclose incident-based mortality.

The company reports an improvement in the average farm survival rate of shrimp from 38% in 2022 to 75% in 2023. However, it does not disclose the financial cost of shrimp mortality or set a time-bound target to reduce mortality rates.

The company does not disclose the number of disease outbreaks for the past three years. It has implemented water filtration measures in specific locations, such as the Seychelles and Ghana, including enhanced wastewater treatment and advanced water recycling systems. However, these measures are not applied uniformly across all regions. Additionally, the company reports the use of pond liners in four farms.

The company has a publicly accessible policy committing to respect human rights as outlined in the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.

In FY2023, the company conducted human rights risk assessments across 12 countries with production facilities, using methods such as vessel inspections, social audits, consultations with welfare committees, and supply chain mapping. Regions are categorised as high, medium, or low priority based on risks like labour trafficking, forced and child labour, referenced in the 2023 ITUC Global Rights Index. The company states it has assessed 100% of its operations, contractors, tier 1 suppliers, and joint ventures over the past three years. Human rights issues in the company’s operations are monitored through risk assessments and audits by both internal and third-party bodies like ETI and SMETA. Facilities must draft plans to rectify non-compliance issues identified during audits. Annual self-assessment questionnaires identify high- and medium-risk suppliers, who then face independent audits. The company is committed to providing remediation for any human rights impact it contributes to or is associated with. Collaborations with NGOs, labour unions, and capacity-building initiatives aim to minimise modern slavery and human rights violations within the company and its supply chain.

The company categorises 12% of its Thai suppliers of food ingredients, packaging materials, and logistic services as high or medium risk. However, it does not specify the types of risks or their locations and provides no evidence of remediation for identified human rights risks.

The company has committed to prohibiting child labour, forced labour, discrimination, and inhumane treatment and is advocating for fair wages. It conducted living wage evaluations for 94% of its workforce, comparing salaries against standards from The Global Living Wage Coalition, the MIT Living Wage Calculator, and The Living Wage Foundation. Although it aimed to complete assessments for 100% of employees by the end of 2022, it remains unclear if this goal was achieved. Third-party certifications, such as the Ethical Trade Initiative (ETI) Base Code, Business Social Compliance Initiative (BSCI), and Supplier Ethical Data Exchange (SEDEX), verify and audit the company's operations to ensure adherence to fair and legal labour practices. Additionally, annual internal audits are conducted in all its facilities in Thailand to ensure compliance with the Code of Conduct and Thai labour laws. The company also mandates its suppliers to prohibit child labour, forced labour, discrimination, and inhumane treatment while maintaining fair wages. However, only a partial living wage assessment has been completed for its supply chain. The company does not disclose its policy on sick pay.

The company conducts labour risk assessments and social audits to implement its Code of Conduct, working with suppliers to address non-compliance, except in cases of serious labour violations. An anonymous complaint system is available for employees and suppliers to report violations, fraudulent activities, abuse, or inappropriate workplace behaviour via web and phone. However, it is not clear whether this system was developed with input from stakeholders such as employees or unions. In 2023, the company received three complaints concerning business and policy misconduct, though it remains undisclosed if other grievances were reported.

The company affirms its commitment to employee health and safety and holds ISO 45001 accreditation, though it is unclear what proportion of its operations is covered by this certification. It does not disclose having a health and safety committee or any assessment of antimicrobial resistance risk for the workforce.

The company reports a reduction in the lost time injury frequency rate (LTIFR) for employees, from 0.32 in FY2022 to 0.24 in FY2023, and for contractors, from 0.19 to 0.12 over the same period. It recorded one employee fatality in FY2023, compared to none in FY2022. Contractor fatalities remained at zero for both years. The company reports a turnover rate of 17.87% for FY2023, with data disaggregated by seniority level, including top management, senior management, non-management, and daily workers.

The company commits to respecting employees' rights to freedom of association and collective bargaining, with 82.59% of its employees under union or collective bargaining agreements. Although it mandates suppliers to honour these rights, it does not describe specific measures taken to support them.

The company reports that 82.59% of its employees are represented by trade unions or under collective bargaining agreements. Its workforce consists of 41,470 permanent, 822 temporary, and 2,505 non-guaranteed hours employees, with 13,030 full-time equivalents and 31,767 daily staff. Additionally, the subcontracted workforce totalled 109,831 in 2023.

The company's processing plants are certified to GFSI-recognised standards, including BRCGS and BAP, but it does not disclose the proportion of total sites certified. It collaborates with suppliers to meet food safety standards, using GFSI certification, assessment questionnaires, and on-site audits for approval. However, GFSI certification is not explicitly required for all suppliers, though the company does disclose the proportion of suppliers with GFSI certification.

The company conducts at least one internal audit annually, providing detailed information on the audit protocol, planning, and process. It mandates a corrective action plan for facilities' non-conformances, requiring investigations to be completed within 24 hours, but does not disclose corrective action rates. The company is committed to traceability in its seafood operations, ensuring customers are informed about the origins and methods of tuna capture. It employs a comprehensive management system for monitoring tuna, incorporating the GDST standard for critical tracking events. The company enhances this process through continuous benchmarking and monitoring, aiming for full integration of traceability for each product as standard practice.

The company provides detailed information on supplier requirements for product withdrawal and recall procedures but lacks a comprehensive description of its own product recall system, including protocols, roles and responsibilities, and communication plans. Additionally, it does not disclose the number of product recalls in the reporting year.

The company does not disclose the number and locations of market bans or product recalls for the reporting year. Moreover, no product recalls or market bans were detected in media screening during this period.

The company's Board of Directors has established the Sustainable Development Committee, consisting of two directors and three executives, including the president and CEO, to guide sustainability strategies and set major policies aligned with goals such as the UN SDGs and DJSI. The company conducts an annual materiality assessment, with the most recent review disclosed in 2023. This process involves understanding organisational context, identifying and assessing impacts, and prioritising significant issues for reporting. Identified material issues include human rights, responsible sourcing, climate adaptation and resilience, supply chain traceability, and natural ecosystem and biodiversity conservation, which are reviewed by the Board. The company discloses its board's skill matrix, indicating that eight directors have expertise in Corporate Social Responsibility/Sustainable Development and two in environmental matters, though it lacks a member with expertise in food safety. The company also engages advisory board members to provide guidance on innovation.

The company recognises integrating climate performance KPIs into governance remuneration and incentives as crucial to its climate strategy, but has not confirmed the implementation of this incentive mechanism. The company is engaged with sustainability-focused industry and international initiatives such as SeaBOS, the UN Global Compact, the International Seafood Sustainability Foundation, and The Global Dialogue on Seafood Traceability, highlighting its commitment to climate and human rights issues. It is also collaborating with SeaBOS on a project addressing antimicrobial resistance (AMR) by partnering with governments and international organisations. Although actively participating in these engagements, the company does not provide a comprehensive list of its memberships in trade associations, alliances, and coalitions, nor does it commit to aligning its policy-engagement activities with the goal of limiting the global temperature rise to 1.5°C.

The company has an innovation department, the Global Innovation Center, focused on advancing sustainability by better utilising fishery resources, optimising processes, and generating value from by-products. Additionally, it invests in start-ups concentrating on sustainability innovation, including those developing alternative proteins like cell-cultivated seafood and plant-based products. The company recognises its benchmarking position in several ESG indices, including the Dow Jones Sustainability Indices and the Seafood Stewardship Index by the World Benchmarking Alliance.

The company reports that the plant-based food market has expanded rapidly due to consumer interest in healthy and environmentally beneficial options. Consequently, it has focused internal resources on plant-based alternative proteins. In 2023, sales from value-added and other business segments, including alternative protein products, totalled THB 9.9 billion, making up 7% of total sales. However, revenue specifically linked to alternative protein sources is not separately disclosed. Furthermore, the company lacks a timebound target for protein diversification.

In 2021, the company introduced plant-based ambient tuna flakes, alternative whole shrimp, and shrimp pieces. That year, it also launched a plant-based brand named "OMG Meat," offering a variety of frozen high-protein products, including seafood, ready-to-eat meals, and other meat alternatives like dim sum, crab dumplings, shumai, crab cakes, hoi jor, shrimp wontons, red pork buns, fish nuggets, and chicken nuggets. In 2023, the company launched its first branded alternative seafood products under the John West brand in the Netherlands, including Fish-free Tuna in Oil and Tuna in Tomato and Basil. This was followed in the UK by two plant-based tuna salad products with couscous and lentils – Harissa and Indian – under the John West Plant Power brand. The company established its Thai Union Alternative Protein business in 2021 to address growing consumer demand for healthy, environmentally friendly, and sustainable products. This unit combines expertise in seafood processing with innovative technologies, focusing on alternative seafood and meats, while exploring areas like insect proteins and lab-grown meats through collaborations and investments. In its 2023 corporate strategy, the company disclosed ongoing investments in alternative protein ventures to drive the growth of its Alternative Protein business, alongside exploring specialised ingredients for marine products. Its Corporate Venture Capital fund has made eight investments, including in Algama, a micro-algae ingredient company, and Orgafeed, which specialises in insect protein for pet food.