WH Group Ltd

The company does not currently have a Science-Based Target and has removed its commitment from the SBTi website as of April 2024. It has disclosed a commitment to identifying opportunities for reducing carbon emissions in livestock farming and improving biomass energy utilisation in agriculture. Efforts include innovations in animal feed to reduce methane emissions from ruminant digestion and the continued capture of methane on farms in the US and Mexico. However, the company has not specified a methane emission reduction target for animal farming.

The company aims to reduce greenhouse gas emissions per unit of product by 30% by 2030, using a 2017 baseline, and to achieve carbon neutrality by 2050 across its entire supply chain. Its subsidiary, Smithfield, targets carbon neutrality in all US operations by 2030. Additionally, Shuanghui Development seeks to reduce Scope 2 emissions and procure 25% of its electricity from renewable sources by 2030. However, the company has not disclosed specific targets across Scope 1, 2, and 3 emissions.

The company is committed to achieving net zero emissions by 2050 throughout its value chain across all subsidiaries. Recognising that 76% of Scope 3 emissions are generated upstream, it focuses on reducing the agricultural carbon footprint in its supply chain. The company's Smithfield agronomy programme aids farmers in the upstream supply chain to lower crop inputs and enhance yields through carbon reduction investments and ecological conservation. Collaborating with suppliers, it tracks feed supply and evaluates feeds with lower carbon footprints. As of the end of the reporting period, Smithfield achieved a reduction of over 100,000 metric tons of feed-related emissions compared to 2010. Meanwhile, another key subsidiary, Shuanghui Development, encourages suppliers to prioritise advanced environmental protection to decrease carbon emissions, requiring them to sign an Environmental Protection Initiative.

The company has reduced feed-related emissions by over 100,000 tons compared to its 2010 baseline through testing and using alternative feed ingredients with a smaller environmental footprint. In the US, the company partners with independent agronomic consultants to share best practices and assist farmers in creating site-specific sustainability strategies that improve crop yields, reduce greenhouse gas emissions, and offer economic benefits. Its facility in Poland has committed to reducing nitrogen use from natural fertilisers to 150 kilograms per hectare by 2025 to improve nutrient balance and minimise impacts on ecosystems. In Romania, farms only apply organic fertiliser after soil and manure analysis by external agencies.

The company is innovating in animal feed to reduce methane emissions from ruminants. In China, it improves feed quality by using materials like extruded soybeans and milk replacers for pre-digestion, which decreases digestive tract time and greenhouse gas emissions. In 2023, the company initiated a project to incorporate peptone, a byproduct from heparin manufacturing, into animal feed, enhancing protein levels and reducing waste and feed requirements. The company's 2023 CDP Climate report highlights ongoing investment in methane capture on hog farms, with encouragement to provide more details in future reports. It also outlines its carbon reduction strategy, mentioning renewable energy use, such as photovoltaic installations, and the promotion of energy efficiency. However, specific examples of enhancing farm efficiency are not provided.

The company reports Group emissions of 2,925,037 metric tons CO2e for Scope 1, 1,920,478 metric tons CO2e for Scope 2, and 46,299,600 metric tons CO2e for Scope 3.

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 did not submit the CDP Climate Change questionnaire in 2023. However, its US subsidiary submitted a response and received a score of D. The company’s Chinese subsidiary has engaged a third-party professional service to monitor emissions data. Meanwhile, its US subsidiary's 2023 CDP Climate response mentions that its GHG inventory did not receive third-party verification or assurance. The company does not disclose if emissions data from other regions are audited by a third party, limiting the geographic scope of its disclosures.

The company does not disclose any information on its emission performance. The company does not disclose a quantitative decrease in emissions arising from feed, enteric fermentation, or manure management.

The company reports conducting climate scenario analysis for below 2ºC using RCP2.6 and NGFS "Net Zero 2050" scenarios, for 2ºC using RCP4.5 and NGFS "Delayed Transition" scenarios, and for above 2ºC using RCP2.6 and NGFS "Nationally Determined Contributions (NDCs)" scenarios.

The company identifies several climate-related risks, with mixed levels of mitigation disclosed. It acknowledges that increased drought frequency and climate change will lead to reduced crop yields, increased feed and water costs, and production suspensions, all of which affect operating costs and supply chain stability. To mitigate these risks, the company selects sites with multiple water sources, develops emergency water plans, establishes a multi-source procurement network, and addresses commodity price risks to manage drought impacts. Extreme heat is recognised as posing challenges, including reduced crop yields, weakened hog fattening capability, decreased employee productivity, and higher energy consumption. The company mitigates these risks by developing multi-source procurement networks, implementing energy backup plans, equipping cooling and humidification systems, and creating emergency plans for heatstroke prevention. The company does not provide information regarding increased veterinary and medicine costs associated with climate risks. In clean energy initiatives, Smithfield has invested in projects within the US and Europe, including photovoltaic panels at European plants and collaborations with clean energy companies. These efforts aim to reduce reliance on fossil fuels and enhance energy infrastructure across operating locations. Smithfield Foods, the company's US subsidiary, acknowledges potential regulatory or taxation impacts related to carbon emissions on commodity and energy prices but does not detail mitigation measures. The company discloses its commitment to integrating climate risks into risk management frameworks and evaluating their financial impact but does not provide information on the number of financially material events caused by 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 responded to the CDP Forests Questionnaire in 2023 through its U.S. subsidiary, Smithfield Foods.

The company's supplier code of conduct and selection process lack any specific reference to deforestation. While it claims to prioritise suppliers that aim to protect biodiversity, no explicit mention of deforestation is made. The company does not provide details on support for soy producers aimed at promoting deforestation-free production or enhancing traceability, aside from acknowledging that Smithfield Grain sources local grain for feed milling. Additionally, Smithfield appears to only engage timber product suppliers and not those of other forest commodities.

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 the U.S., the company collaborates with independent agronomic consultants to assist farmers in creating site-specific sustainability strategies to reduce the environmental impact of fertilisers. It also shares best management practices to help farmers lower water usage, enhance water quality, and use nutrient management tools to optimise nutrient absorption and minimise fertiliser usage.

The company conducts water resource risk assessments through its subsidiaries to enhance water risk identification and adaptation. In the United States, Smithfield employs the World Resources Institute’s Global Water Tool and the GEMI Local Water Tool to annually evaluate water source and supply risks. A 2022 report indicated minimal risk for operations, with negligible local water supply impact and no use of protected sources. However, this assessment was not updated for the reporting year, preventing conclusions on low-water stress operations. The company has not confirmed water risk assessments for its operations in Mexico or China. Smithfield Foods is dedicated to responsible water management, employing tools to assess water impact. In 2021, it commissioned a study to evaluate current and future groundwater demands across company-owned locations, contracted hog farms, and grain suppliers, with a review in progress. It also developed a water footprint assessment tool to identify water-scarce areas and implement conservation measures, though specific locations are undisclosed. In China, Shuanghui Development formulated a comprehensive water management policy with strategic plans, including regular tracking and risk identification. An Emergency Plan and leadership group have been established to address critical water resource situations. In FY2023, the company reported water consumption of 69.60 million m3, promoting water reuse through initiatives such as rainwater collection and reclaimed water, achieving a reuse ratio of 7.9%. Subsidiaries implemented programs to recycle water resources and cut consumption. Shuanghui Development in China recycles wastewater in factories and employs staff to prevent water waste. In Poland, Smithfield adopts innovative water conservation approaches like closed waterway design. In Mexico, Smithfield’s facilities actively convert treated wastewater into reclaimed water for operations, showcasing commitment to sustainable practices by recycling rainwater and treated wastewater.

The company does not disclose a target to reduce total water consumption at its facilities. Its subsidiary, Shuanghui Development, has set a goal to reduce water consumption in China by 10% per unit of main product by 2030, using a 2019 baseline. Another subsidiary, Smithfield, is investing in Poland to reduce water use by 25% from a 2020 baseline, though the target year is unspecified. Additionally, Smithfield aims to reassess its entire US water supply footprint and adopt internationally recognised water management standards by 2025. It also plans to establish a water withdrawal target within the next two years. The Water Resources Institute defines "water use" as the total amount withdrawn from its source for use. The company is encouraged to improve its disclosure on these initiatives.

The company reports its water consumption classified by source: 3.14 million m³ from surface water, 28.34 million m³ from groundwater, and 38.13 million m³ from municipal water. Its US subsidiary, Smithfield, provides further detail, noting withdrawals of 3.19 billion gallons from groundwater, 4.36 billion gallons from municipal sources, 0.72 billion gallons from surface water, and 0.59 billion gallons from reused/recycled sources in US farms. Additionally, international facilities and farms utilised 1.49 billion gallons from groundwater and 0.77 billion gallons from municipal sources. According to its 2023 CDP Water Report, Smithfield does not withdraw water from areas identified as water-stressed, based on an internal risk assessment, though this only applies to Smithfield's operations. The company does not disclose water-related capital expenditure (CAPEX) or operational expenditures (OPEX) for the entire group. However, Smithfield reports a 10% increase in water-related CAPEX and a 3% increase in OPEX during the reporting year, with both anticipated to rise by 3% forward. Smithfield uses third-party audits to evaluate its environmental, sustainability, and regulatory compliance programmes, which aid in identifying and addressing water resource risks during operations, though it is not clear whether these audits cover water data explicitly. Only Smithfield participated in the CDP Water questionnaire in 2023. Between FY2022 and FY2023, the company reduced water consumption across all sources. Surface water usage fell from 3.48 to 3.14 million m³, groundwater from 32.43 to 28.34 million m³, and municipal water from 39.24 to 38.13 million m³. Smithfield also saw decreases: groundwater from 4.71 to 3.19 billion gallons, municipal water from 4.82 to 4.36 billion gallons, surface water from 0.80 to 0.72 billion gallons, reused/recycled sources from 0.83 to 0.59 billion gallons, and international groundwater from 2.61 to 1.49 billion gallons, municipal water from 0.85 to 0.77 billion gallons.

The company encourages its suppliers to engage in environmental conservation initiatives as outlined in its Supplier Code of Conduct, though this code is not publicly available. While environmental management systems are reportedly in place across all operational sites, there is no explicit mention of water management in feed production. The US subsidiary, Smithfield, highlights a commitment to reducing water usage, although it initially did not specifically address water scarcity in feed. However, the company's 2023 ESG Report indicates that Smithfield collaborates with farm organisations to improve water efficiency during feed cultivation by advising feed suppliers. Smithfield's 2023 CDP Water response describes a collaboration programme with grain supply farmers, achieving best practices for water efficiency on 475,000 acres, equivalent to 75% of their grain supply. Additionally, in its 2023 Sustainability Report, Smithfield Grain reports partnerships with agronomic consultants to develop sustainability strategies for farmers, focusing on reducing water usage and improving water quality.

In 2023, the company disclosed a freshwater use intensity of 7.26 m3 per metric ton of produced product, without specifying whether this relates to feed. In its 2023 CDP Water response, the company reported that less than 1% of maize in its value chain is produced in water-stressed areas, but it did not disclose information on soy, wheat, or other feed commodities. The company mentions using supply chain innovations to protect water from nutrient runoff without linking this to addressing water scarcity. According to its 2023 Sustainability Report, the company's subsidiary collaborates with agronomic consultants in the US to help farmers develop site-specific sustainability strategies, share best practices for water use reduction, and improve water quality. It also utilises alternative crops and curated seed mixes to optimise soil health, resulting in better crop yields and economic support for farmers.

The company has not disclosed information about the proportion of animal protein produced or sourced in water-stressed regions. The company utilises water in livestock farming for animal feeding and house cleaning, as well as for sterilisation and cleansing during harvesting and processing. It emphasises water efficiency management to mitigate ecological impacts and control water risk, promoting conservation and recycling through water-saving equipment and technologies. Although examples of management initiatives in pork and poultry farming are provided, the company lacks a sustainable agricultural policy focusing on water scarcity risks. In China, it employs staff for water resource management at each Shuanghui Development poultry farm and has implemented a Total Productive Maintenance system to minimise water waste. In Mexico, Smithfield recycles water on farms, collecting and reusing rainwater and treated wastewater. Moreover, the company examines water management among its partners and within critical business watersheds. In the US, Smithfield conducts comprehensive watershed analyses across its supply chain, using findings to devise conservation strategies, update policies, and set performance goals, with quarterly reviews of water usage data. In Mexico, Smithfield supports watershed management initiatives and avoids suppliers in water-scarce areas when introducing new primary suppliers to mitigate supply chain water risks.

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 discloses the discharge of 55.19 million cubic metres of wastewater in FY2023 but does not provide information on its quality or third-party audits of the data. Its U.S. subsidiary, Smithfield Foods, did respond to the CDP Water Security questionnaire in 2023.

The company’s U.S. subsidiary has partnered with Optima BioEnergy on wastewater-to-RNG biogas projects. Additionally, another partner in Utah has developed a method to convert sludge from biogas production into approximately 30,000 tons of dry organic fertiliser annually by using desert drying beds. Wastewater discharge increased from 45.10 million cubic meters in FY2022 to 55.19 million cubic meters in FY2023. However, the company has not disclosed whether there has been an improvement in overall wastewater quality compared to the previous reporting period.

The company supports feed farmers using nutrient management tools to optimise nutrient absorption and fertiliser usage. However, it lacks an official agricultural policy addressing nutrient pollution or fertiliser use in feed supply chains and does not require suppliers to have nutrient management plans. The company has launched the SmithfieldGro project to help farmers minimise crop inputs and enhance yields through investments. It collaborates with independent agronomic consultants in the United States to create customised sustainability strategies, focusing on reducing water consumption, improving water quality, optimising nutrient absorption, minimising fertiliser usage, and promoting soil health through alternative crops and seed mixes. In June 2020, the company partnered with Granular, a farm management software platform, to support grain farmers in its supply chain, aiming to improve sustainability, efficiency, and crop yields. This initiative was specific to grain farmers in North Carolina, Ohio, South Carolina, and Virginia. However, the partnership is not mentioned in the current reporting period.

The company has partnered with independent agronomic consultants and utilises nutrient management tools to optimise fertiliser use in its feed supply. In the United States, it is involved in the SmithfieldGro project, collaborating with upstream farmers to reduce pesticide pollution in water resources and address soil erosion. However, further details on this initiative are not provided.

The company captures natural emissions from manure through anaerobic digesters, converting it into low-carbon renewable natural gas (RNG). As of 2023, it operates 118 covered lagoons and digesters across over one million hog spaces, producing nearly one million dekatherms of RNG annually. In China, its Xihua base biomass natural gas project processes 400 metric tons of chicken manure daily, producing 10,000 cubic metres of natural gas. It also collaborates with third parties to use manure as organic fertiliser, achieving a 100% conversion rate. In the United States, the company partners with AnuviaTM to utilise organic matter from hog manure on farms to create sustainable, commercial-grade fertilisers. The company conducts water-related risk assessments but does not consider water quality among contextual issues. It employs the World Resources Institute's Global Water Tool and the GEMI Local Water Tool for assessing water supply risks at operational sites. However, the Global Water Tool was decommissioned in June 2019.

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 disclose whether it includes nutrient management performance in incentive schemes for farmers. Through its subsidiary, the company has partnered with Anuvia™ Plant Nutrients to produce commercial-grade fertilizers from hog manure. In China, it collaborates with third parties to convert farm-produced manure into organic fertilizer with a 100% conversion rate. The company has not disclosed a community engagement plan addressing its impact on communities near its operational sites.

The company has established policies to ensure responsible antibiotic use in animal production by enforcing strict controls and acknowledging associated risks. Suppliers are required to comply, with regular checks conducted according to veterinary prescriptions. Shuanghui Development, a subsidiary, actively participates in monitoring programmes, seeks to reduce antibiotic usage, and explores alternatives. Smithfield Foods, operating in the US, Europe, and Mexico, aligns with FDA guidelines and EU regulations through an Antibiotics Use Policy. This policy involves tracking and reporting antibiotic use, promoting alternatives, and prioritising research for reduction while improving animal health. Across its operations, the company prohibits using medically important antibiotics for growth promotion, aligning with stewardship best practices. Specifically in pork production, antibiotics are used only when necessary under strict veterinary oversight and not routinely. Although this policy primarily applies to the US, Europe, and Mexico, it is unclear if it extends to areas including China. Smithfield Foods discontinued using these antibiotics for growth promotion at company-owned and contract farms in 2016. To enhance animal welfare and reduce antibiotic necessity, the company implements biosecurity protocols, vaccination programmes, and explores alternatives like acidulants and microecological preparations. Smithfield also develops veterinary drug use procedures focusing on disease prevention and control, reducing the need for antibiotics.

The company provides a quantitative metric for antibiotic use in mg/kg across its operating regions, with specific figures for China, the U.S., Poland, Romania, and Mexico. However, it does not categorise antibiotic quantities by type or class, nor explain the reasons for usage during the reporting period. From 2022 to 2023, antibiotic usage varied significantly across regions. China increased by 26.2%, the U.S. decreased by 10%, Poland rose by 9.2%, Mexico increased by 15.8%, while Romania halved its usage by 52.4%. These regional changes led to a slight overall decrease from 1233 mg/kg in 2022 to 1225 mg/kg in 2023, a reduction of 0.65%. The company does not disclose if its antibiotic data is audited by a third party.

The company demonstrates a commitment to animal welfare by adhering to principles akin to the Five Freedoms, focusing on safe shelter, nutritional needs, and humane treatment. It engages and trains employees on animal welfare issues across all operations, providing specialised training to enhance awareness and proficiency. The company reports conducting annual third-party audits of its hog production and processing operations and maintains anonymous channels for reporting noncompliance, which are acted upon immediately. However, it does not provide details on actions taken following such reports and lacks transparency on non-compliance with animal care procedures. The company is not involved in research and development specifically aimed at advancing animal welfare. While it mentions process improvements and stakeholder involvement, it does not reference specific R&D initiatives or collaborations focused on enhancing animal welfare.

The company is committed to avoiding close confinement across all its operations and has invested in group housing for sows in its U.S. sow farms, as well as operations in Mexico, Poland, and Romania. By 2023, 42% of U.S. contract farmers have also transitioned to group housing for confirmed pregnant sows. However, the company does not disclose information on avoiding routine mutilation. In hog transportation, the company has implemented measures to ensure animal comfort, holding certifications such as the National Pork Board’s Pork Quality Assurance® Plus (PQA Plus) and Transport Quality Assurance (TQA) programs. Despite this, there is no commitment to limiting transportation times to 8 hours or below. For humane slaughter, the company's subsidiary, Shuanghui Development, uses carbon dioxide or electrical stunning, with similar practices applied in the U.S., Poland, and the use of biogas in Mexico. The company has pledged to assess barn enrichment on its farms by 2030 but does not detail current enrichment provisions. Furthermore, there is no disclosure of a commitment to excluding breeds with traits that increase anatomical or metabolic disorders.

The company's operations, particularly via its subsidiary, are certified by various farm assurance programmes focused on animal welfare, including the U.S. Department of Agriculture Process Verified Program (PVP) and the National Pork Board’s Pork Quality Assurance® Plus (PQA Plus) programme. It conducts both internal and third-party audits to ensure adherence to animal welfare standards. The company is committed to ensuring that all its live animal suppliers in the United States obtain certifications through the PQA Plus programme. However, it does not disclose certification details for suppliers in other regions.

The company reports that all confirmed pregnant sows on its own farms globally are housed in group housing systems. In the U.S., the percentage of contract farmers using group housing for these sows increased from 36% in 2022 to 42% in 2023.

The company provides group housing for confirmed pregnant sows worldwide but does not disclose details about sow housing conditions in its Shuanghui operations. It also fails to provide information on tail docking practices. Whilst it rejects late surgically castrated pigs during procurement, its overall policy on surgical castration is unspecified.

The company provides a broad statement on human rights, adhering to international conventions like the International Labour Organization (ILO) and the Universal Declaration of Human Rights (UDHR).

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 strictly prohibits child labour, forced labour, discrimination, and harassment. It benchmarks and reviews remuneration based on market dynamics; however, it is unclear if employees are paid a living wage, and the company does not specify whether all workers recieve paid sick leave. The company discloses that its US subsidiary conducts SMETA audits at 25 of its 30 US factories to assess policies on child labour, forced labour, discrimination, and harassment. The Supplier Code of Conduct expects suppliers to prohibit child labour, forced labour, and harassment, but does not mention discrimination or ensuring wages meet the cost of living.

The company does not disclose conducting supply chain audits for selected policies. The company has a whistleblower mechanism for reporting misconduct, fraud, immorality, and non-compliance, accessible to customers, suppliers, contractors, creditors, debtors, and employees. Reports can be made anonymously. Subsidiaries have their own similar mechanisms, and the group's grievance reporting channel extends to suppliers. The company disclosed 103 discrimination reports received by Smithfield during the reporting year, but it does not disclose the total number of grievances across its business segments.

The company is committed to protecting worker health and safety, aiming for ISO 45001 certification for all facilities by 2025, though it is unclear if any currently hold the certification. In China, Shuanghui Development's Safety Management Committee is chaired by the President, but the company does not disclose information on safety committees for other regions or whether site-level health and safety committees include employee representatives. Additionally, the company has not provided information on assessing or discussing antimicrobial resistance risk for its workforce.

The company reports a decline in worker injury rate from 1.33 per 200,000 working hours in 2022 to 1.23 in 2023. Additionally, work-related fatalities decreased from three in 2022 to two in 2023. The employee turnover rate improved from 45% in 2022 to 38% in 2023, but this data is not disaggregated by seniority level.

The company operates in China, where freedom of association is not legally supported. However, it does not disclose the unionisation rate for its operations outside China. While the company conducts regular joint labour management meetings to facilitate collective bargaining, it does not publicly report on measures taken to support employees' rights to freely associate. The supplier code of conduct for the company's US subsidiary requires suppliers to respect employee rights, including freedom of association, organisation, and collective bargaining.

For the reporting period, the company discloses that the percentage of its active workforce covered by collective bargaining agreements was 100% in China, 59% in the US, 68% in Mexico, 15% in Poland, and 100% in Romania. However, its US subsidiary, Smithfield, reported only 44% of US workers were covered by such agreements in 2023, raising questions about the accuracy of the US figures. The company states that 94% of its employees are direct, and 6% are contracted. While it employs both full-time and part-time workers, the company does not provide a breakdown between full-time, part-time, or hourly paid workers.

The company reports that in 2023, all its harvesting and packaged meats facilities globally obtained and maintained certifications in at least one product quality and food safety system, such as ISO 9001, the Global Food Safety Initiative (GFSI), ISO 22000, and Hazard Analysis and Critical Control Points. In the United States, Poland, Romania, and Mexico, all relevant facilities achieved GFSI standards through audits by Safe Quality Food, BRC Global Standard, International Food Standards, and ISO 22000. Additionally, all global slaughterhouses and meat processing plants maintain these certifications. In the U.S. and Europe, suppliers undergo annual GFSI certifications or equivalent third-party food safety audits. All U.S. suppliers are additionally covered by the USDA's Process Verified Program. Suppliers in the U.S. and Europe are required to obtain GFSI certification, a condition that applies to more than two-thirds of the suppliers.

The company implements regular food safety procedures in China via its Food Safety and Quality Inspection Team and Food Safety Supervision Group. Its Smithfield subsidiary also conducts audits on tier 1 suppliers and local sites, ensuring annual Global Food Safety Initiative (GFSI) certifications or equivalent audits. However, the company does not disclose corrective action rates for non-conformances, nor does it provide information on consumer-facing technology for food safety traceability.

The company outlines its product recall approach, including the management structure, roles, and responsibilities, but lacks comprehensive details on documentation, disposal procedures, and communication with customers and regulators. There is also no information on the recall process's speed or its tracing capabilities for 100% of recalled products. In 2023, the company's U.S. and Shuanghui Development operations had zero recalls, while its international operations experienced five recalls: two in Romania, one in Slovakia, and two in Poland. These recalls in Poland and Slovakia were due to salmonella contamination, while those in Romania were attributed to African swine fever and salmonella. The company adheres to its Product Recall Manual in Europe and conducts quality training programs to improve food safety knowledge and risk awareness. It reports that all recalls were managed appropriately without resulting in any food safety incidents.

The company reports no market bans during the reporting year.

The company has established a three-tier governance structure to integrate ESG across the organisation, consisting of the Board of Directors, the ESG Committee, and the ESG Working Group. The Working Group is responsible for implementing the ESG agenda and holds regular meetings with Shuanghui Development and Smithfield to track sustainable development progress. Chaired by the CEO, the ESG Committee includes an Independent Non-Executive Director and four Executive Directors. The Board oversees ESG risk assessment and management. In 2023, the company reviewed its materiality assessment, identifying key issues such as governance, product quality, climate change response, occupational health and safety, energy management, and antibiotic use. The Board of Directors is responsible for the final approval of these topics. The company does not disclose whether its board members have expertise in sustainability, food safety, or product development and innovation.

The company discloses that the President of Shanghui Development receives variable remuneration tied to ESG performance. However, the company does not reveal whether it engages with public policy officials or trade and civil associations on ESG matters. It also lacks transparency regarding its memberships in trade associations, alliances, and coalitions. Moreover, the company has not committed to aligning its policy engagement activities with the goal of limiting global temperature rise to 1.5⁰C.

The company is committed to reducing its wastewater, emissions, and solid waste through innovation. It reports pursuing innovations in animal feed to lower methane emissions from ruminant digestion. In the United States, its subsidiary, Smithfield, partners with Optima BioEnergy in wastewater treatment and converting wastewater into renewable natural gas. The company acknowledges its ranking in the S&P Global Sustainability Assessment, showing attention to sustainability performance relative to peers. It also conducts peer benchmarking as part of its materiality assessment.

The company recognises that climate change might shift market preferences towards plant-based meats and vegetarian foods. Nevertheless, it also sees increasing demand for meat products due to improving living standards. The company is observing market trends and consumer preferences to potentially launch innovative products but has not disclosed any information on tracking or reporting revenue from alternative protein sources. Furthermore, it has not set any timebound targets or goals for diversifying protein sources.

In 2019, the company introduced "Pure Farmland," an alternative protein brand through its subsidiary, Smithfield Foods, featuring plant-based protein products. The current reporting period lacks evidence to confirm this brand's market presence. In 2022, "Vegetarian World," a plant-based product line, was launched by another subsidiary, Shuanghui Development. The company should update on this brand in the next reporting period. The company has indicated a potential intention to pursue further research and development in alternative meats to create innovative products. However, it has not disclosed specific investment plans for future growth.