Vital Farms Inc

The company does not have a science-based emission reduction target.

The company has set its first greenhouse gas emission reduction goal to decrease scope 1 and 2 emission intensity by 25% by 2027, using 2022 as the base year. In its 2024 Impact Update, it reported a reduction in intensity of 0.25%. Although scope 3 emissions are relevant due to the company's purchase of pasture-raised eggs and its supplier base of over 300 family farms, it does not disclose a quantitative target for scope 3 emissions reduction nor mention plans to establish one.

The company aims to engage 100% of farmers in regenerative agriculture practices by 2026. As of its 2024 Impact Update, 15% of farmers have been engaged. While this initiative is expected to aid in emission reduction, the company is encouraged to provide more detailed insights regarding its impact on emissions.

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

The company is committed to transparency regarding animal farming, climate change, and resource conservation. It identifies energy efficiency and renewable energy opportunities to better manage climate impacts in its operations. In 2022, it launched 'Restorative Eggs', a product certified by Regenified in 2023 for advancing regenerative practices that enhance soil health and land resilience to flood and drought. Though the company does not explicitly link these practices to reducing emissions from animal farming, it notes the use of carbon-capturing cover crops. By 2026, the company aims to involve all egg farms in its network in additional regenerative practices through training, educational resources, and funding opportunities.

The company reports scope 1 emissions of 5,426 mtCO2e, scope 2 emissions of 2,309 mtCO2e, and scope 3 emissions of 253,847 mtCO2e.

The company reports scope 3 emissions for purchased goods and services as 214,822 tCO2e in 2023, which potentially includes emissions from poultry farming to produce eggs and from raw materials for animal feed. However, it is encouraged to provide specific emissions data for animal farming and feed materials. Additionally, the company has not disclosed its GHG emissions from land-use change.

The company has submitted a response to CDP's Climate Change questionnaire in 2023, but it has not yet received a score. Additionally, the company does not disclose if its GHG inventory is audited by a third party.

Between FY2023, absolute total emissions (Scope 1, 2, and 3) increased by 50%, from 174,313 tCO2e to 261,582 tCO2e. The company previously reported Scope 1 and 2 data but began disclosing Scope 3 data in FY2023. There is no disclosure of absolute emission reductions from feed, enteric fermentation, or manure management. In FY2023, the company generated 69,793 metric tons of manure, up from 47,248.6 tons in FY2022. For the current reporting period (FY2023), emissions were reported as follows: Scope 1 at 5,426 mtCO2e, Scope 2 at 2,309 mtCO2e, and Scope 3 at 253,847 mtCO2e.

In 2021, the company conducted its initial climate-related risk assessment based on a 2°C scenario, examining a sample of farm locations and feed mills. This assessment continues on a bi-annual basis and guides decisions on expanding the farmer network and prioritising regions for adaptation plans and regenerative, climate-smart farming practices.

The company acknowledges that corn and soy, used for feed, are vulnerable to adverse weather and natural disasters, potentially increasing prices. However, it does not disclose any strategies for mitigation or adaptation. The company notes that rising temperatures and droughts create challenging conditions for animals and increase the risk of infectious diseases, which could negatively impact production. It does not, however, provide plans for mitigating these risks. There are no details about increased veterinary and medicine costs or strategies to address them. Similarly, the company does not evidence measures to manage rising energy costs or discuss the impact of a carbon tax on electricity and animal protein. Additionally, the company has not disclosed any financially material events resulting from climate risks 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 does not disclose having a deforestation/conversion-free target for soy.

The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.

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.

In 2022, the company launched Restorative Eggs, and in 2023, it became the first national egg brand to earn the Regenified™ certification. The company aims to engage 100% of its farmers in additional regenerative agricultural practices by 2026. Participating farms have reported improvements in soil health, including increased microbial activity levels.

The company reports that its Egg Central Station (ECS) in Springfield, Missouri, is situated in a "low-medium" water risk region, according to the WRI Aqueduct tool. It has implemented efficient water use measures, including recirculating new water into the facility every eight hours and recycling water in pallet washers over at least 30 cycles. The company does not withdraw or consume water from high-water stress areas. Its total water consumption was 509.7 m3 in FY2023.

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 water withdrawal increase from 35,046 m3 in FY2022 to 46,123 m3 in FY2023, while water consumption decreased from 10,951 m3 in FY2022 to 509.7 m3 in FY2023. However, it does not disclose water withdrawals or consumption by source. Additionally, none of the water was withdrawn or consumed from high or extremely high baseline water stress areas. The company has not disclosed water-related CAPEX or OPEX for the reporting year, nor confirmed whether its water-related data is audited by a third party. Furthermore, the company has not responded to the CDP Water Scarcity questionnaire during the reporting period.

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 information on feed water intensity. It reports sourcing 20% of its animal feed, including soy and corn, from regions with high or extremely high baseline water stress but provides no evidence of investment in sustainable feed production to mitigate water scarcity.

The company states that 31% of its contracts with producers are in regions with high or extremely high baseline water stress. It depends on family farms located in regions suitable for year-round chicken raising for its egg supply. A bi-annual climate-related risk assessment, which affects the growth and prioritisation of its farmer network, informs its adaptation plans to enhance supply chain resilience against issues such as drought. The company acknowledges that drought-induced water stress negatively affects animal productivity and farmers but does not disclose its water scarcity management measures within the animal supply chain. A dedicated Farm Support team offers guidance to egg farmers to uphold the company's standards, including weekly calls, monthly visits, and biannual audits. An update on restorative farming progress indicates collaboration with advisors on regenerative agriculture practices. However, it does not disclose providing comprehensive guidance, support, or incentives to suppliers specifically for water use in animal farming.

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

The company reported no incidences of non-compliance with water quality permits, standards, and regulations in 2023. Its Egg Central Station in Springfield, Missouri, is situated in a "low-medium" water risk region, according to the World Resources Institute's Aqueduct Water Risk Atlas, although it is unclear if this includes water quality risks. The company has not set or disclosed any quality targets for water-related scenarios or wastewater-related volume targets.

The company discloses a total water discharge of 45,423 m3 from its only processing facility, Egg Central Station. However, it does not provide information on wastewater quality or submit water-related data to CDP. While the Audit Committee oversees business risk management and assessment, the company has not subjected its water-related data to a third-party audit.

The company has discussed separating eggs into shell fragments and liquid eggs to be repurposed into pet food and plant fertiliser. This waste from processing facilities is counted as a by-product. The company has not disclosed information on wastewater quality. It reports a total water discharge of 45,423 m3 for the last reporting year. Although direct water discharge data for previous years is not disclosed, calculated estimates based on water withdrawals and consumption indicate an increase from 24,095 m3 to 45,423 m3.

The company reports that 100% of the land from which it sources eggs is managed under a nutrient management plan. It aims to engage all farmers in additional regenerative agriculture practices by 2026, supporting them through training, educational resources, and funding. The company is the first national egg brand to earn the Regenified™ certification. It implements regenerative practices such as pasture rotation and the avoidance of herbicides and pesticides to encourage nutrient cycling and soil recovery between grazing. However, the company does not disclose how it addresses nutrient management with feed suppliers or any requirements regarding suppliers' nutrient management plans. Additionally, there is no information on partnerships with third parties for sourcing or farming strategies.

The company engages its farmers in regenerative agricultural practices to improve nutrient cycling and allow soil recovery between grazing. It aims to involve all egg farms in these practices by 2026 through training, educational resources, and funding to support long-term soil health. While the company does not discuss direct engagement with feed suppliers for contracted farms, it influences grazing practices, which are part of the suppliers' feed ration. It reports that its egg farmers do not use pesticides or herbicides on pastures and supports pasture rotation for land health. However, the company does not provide similar information regarding the feed supplied to contracted farms, indicating limited implementation of such practices.

The company produced approximately 69,793 tonnes of animal litter and manure, all managed according to a nutrient management plan. However, it does not disclose any conversion of manure into fertiliser or biogas. Additionally, the company does not discuss conducting risk assessments to identify high-risk locations.

The company states that 100% of animal litter is managed in accordance with a nutrient management plan verified by the NRCS. It has also launched a regenerative agriculture programme at four farms, where site-specific farm plans were developed to enhance nutrient-dense soils. These farms implemented measures such as planting cover crops, practising paddock rotations, and integrating grazing cattle. Support is provided by Understanding Ag in collaboration with the company's Farm Support team.

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 follows a policy that limits antibiotic use to medically necessary situations under veterinary supervision, avoiding routine use for disease prevention or growth promotion. This policy aligns with Certified Humane and USDA Organic Standards. The company produces USDA Organic Standard eggs, which prohibits antibiotic use, and maintains antibiotic stewardship in its butter production, allowing therapeutic use under supervision. The company's production is Certified Humane by Humane Farm Animal Care, and it produces USDA Certified Organic Pasture-Raised Eggs. Animals have at least 200 days of outdoor access annually, allowing for foraging in pastures with a maximum stocking density of one hen per 108 square feet. This outdoor farming model enhances the health and welfare of layer hens, reducing the need for antibiotics.

In 2023, the company reported that 0.3% of animals received medically important antibiotics, with none receiving non-medically important antibiotics. This marks an increase from 2022, when 0% of animals received antibiotics. The company's egg production is certified as organic and pasture-raised by the USDA, which includes antibiotic usage audits.

The company supports the Five Freedoms in its animal welfare commitments for poultry and dairy cattle. It is committed to engaging and training employees and contracted family farms on animal welfare issues through established practices and operational guidelines. The company expects its suppliers to comply with the Suppliers Code of Conduct, ensuring their practices align with the Five Freedoms policy and the code. However, the company does not disclose actions taken if there is a breach of its animal welfare policy. The company demonstrates leadership in animal welfare through its Farm Support program, which includes training at Egg School on animal welfare and farm management, regular audits, and ongoing support through weekly calls and monthly visits by farm support teams and veterinary consultants. It also addresses issues like Avian Influenza and extreme weather conditions during farmer gatherings, reflecting a comprehensive approach to maintaining high welfare standards across operations.

The company commits to a pasture-raised model, ensuring ample space and freedom for animals, with each layer hen allotted 108 square feet of pasture. This model supports natural behaviours through outdoor access, perches, and grass areas, enhancing animal welfare. While the company follows industry-standard practices by dulling hens' beaks to prevent cannibalism, it lacks a specific commitment to avoid routine mutilation. Additionally, it does not address commitments to reduce long-distance transportation times or the downstream implementation of humane slaughter methods. The company employs Hy-Line Browns and Azur hens, placing strong emphasis on their welfare through comprehensive care and enriched environments, rather than relying solely on genetic traits.

The company conducts biannual internal audits across its network of farms, evaluating flock management, house environment, and pasture management, supplemented by weekly farmer calls and monthly farm visits. The Farm Support and Farm Compliance teams provide additional guidance to help farmers maintain required standards. All the company's family farms must be Certified Humane® for pastured egg production. Additionally, its dairy operations participate in the National Dairy FARM program, ensuring the implementation of best practices in animal care, environmental management, and biosecurity.

The company states that all of its eggs are cage-free and its production facilities comply with animal welfare criteria.

The company reports that its entire egg production is cage-free, complying with the Certified Humane® and USDA Certified Organic Pasture-Raised Eggs standards. Hens are kept at a maximum stocking density of 108 square feet per hen, allowing access to outdoor pastures year-round. This pasture-raised environment supports natural behaviours such as nesting, dustbathing, and foraging, offering more natural and less confined conditions than typical commercial operations.

The company has published a comprehensive human rights policy aligned with the United Nations Guiding Principles on Business and Human Rights.

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 prohibits harassment, discrimination, child labour, and forced labour, and it is B-Corp certified, committing to paying a living wage to its workers. However, it does not disclose conducting audits of these policies. In its supplier code of conduct, the company requires suppliers to prohibit discrimination, abuse, child labour, and forced labour. While it encourages suppliers to provide living wages, this is not mandatory. Additionally, the company does not disclose a paid sick leave policy.

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 has articulated a health and worker safety policy aimed at ensuring a safe, healthy, and accident-free environment for its workers, but it does not reference any health and safety-related certification. Additionally, it does not mention the involvement of worker representatives in health and safety committees at its facilities. The company reports that 0.3% of animals were administered antibiotics solely for disease treatment during the reporting year. However, it has not addressed the assessment or discussion of antimicrobial resistance risk for its workforce.

The company indicates a decrease in its Total Recordable Injury Rate (TRIR) from 7.0 in 2022 to 5.9 in 2023. It reports zero fatalities for both years. However, the company does not disclose information on the employee turnover rate.

The company asserts its commitment to respecting freedom of association and employee rights to organise and bargain collectively, though none of its 447 crew members are unionised. It does not publicly disclose measures taken to support these rights. The company's supplier code of conduct requires suppliers to respect employees' rights to join organisations of their choice and recognise their rights to collective bargaining.

The company provides a basic statement on collective bargaining rights but does not disclose if any employees are covered by these agreements. Of its 447 full-time crew members, only one is a contract worker. The company does not disclose information on part-time or hourly workers.

The company's egg processing facility, Egg Central Station, has achieved a Safe Quality Food (SQF) Excellent rating, recognised by the Global Food Safety Initiative (GFSI). As the company operates a single facility, all of its processing sites are GFSI certified. However, the company does not explicitly require or expect its suppliers to hold GFSI-recognised certification, although it states that 100% of supplier facilities are GFSI certified.

The company's Egg Central Station undergoes annual unannounced certification audits by SQFI. The reported Global Food Safety Initiative (GFSI) audit showed a 0% non-conformance rate for major issues and 2% for minor ones, with corrective actions implemented for 0% major and 1% minor non-conformances. The company enhances transparency through a traceability initiative allowing consumers to trace the origin of their eggs. Customers can find the farm name on the egg carton, visit the company's website, and enter the name to view a 360° image of the pasture where the eggs were laid.

The company acknowledges the material business risk associated with product recalls impacting its reputation, operation, and costs. However, it does not provide a description of its product recall system. In 2023, the company issued zero product recalls.

The company reports that no market bans apply to its exported products or its internal market.

The Nominating & Corporate Governance Committee of the Board of Directors oversees the company's environmental strategy, initiatives, practices, reporting, and Environmental Policy. The company conducted a materiality assessment in 2021, publicly identifying 17 material topics. Although it plans to refresh this assessment in 2024, it has not evaluated it since 2021. The company could benefit from more frequent reviews of its material issues. One board member, Mr Karl Khoury, has experience in resource efficiency and sustainability. However, the company does not disclose whether any board members have expertise in food safety, product development, or innovation.

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 focuses on innovation through regenerative agriculture and seeks solutions for zero waste to landfill. However, it does not benchmark its sustainability and innovation efforts against peers for the reporting year.

The company does not explicitly acknowledge that protein diversification is a material business issue. Furthermore, it has not yet set a time-bound target to diversify protein sources, nor does it report revenue or sales linked to alternative protein sources.

The company does not indicate an approach to diversifying its product range to include plant-based and alternative protein options.