Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reducing greenhouse gases
• Avoiding waste
• Sustainable milk
• Employee development
• Nutrition
• Supplier management
• Water
• Product quality
• Innovation
• Digitalisation
• Governance
• Occupational safety
• CSR/stakeholder engagement

Environmental Achievements

• Achieved an 18% reduction in greenhouse gas emissions compared to 2014 (by the end of 2018), exceeding the target of 25% by 2020.
• Reduced waste by 5% between 2017 and 2018.
• Saved 175,000 m³ of fresh water annually in Tunisia through optimization projects.
• 100% water power for Emmi plants in Switzerland and Europe.

Social Achievements

• 53% of key positions filled with internal employees (by the end of 2018).
• 63% of employees assigned personal development goals (in 2018).
• 100% success rate for apprentices in 2018.
• Various CSR initiatives implemented across subsidiaries, including support for local communities and charitable organizations.

Governance Achievements

• Implemented a Group-level, global quality management system across country organizations (since mid-2017).
• Implemented the new Swiss industry standard for sustainable milk.
• Improved risk management to include regular assessments on raw materials, materials, and suppliers.

Climate Goals & Targets

Environmental Challenges

• Heterogeneity of sustainability significance across international subsidiaries.
• Lack of readily available solutions for packaging sustainability.
• Difficulty in standardizing waste management processes across international locations.
• High pressure to innovate in the food manufacturing industry.
• Rapid pace of change and high initial costs associated with digitalization.
• Shortage of skilled personnel.
• Increasing complexity of international food legislation.
• Water scarcity in some regions.
• Economic factors hindering water conservation efforts in some regions.
• Growing range of customer requirements leading to increased water consumption.

Mitigation Strategies

• Pragmatic approach to sustainability, adapting to local conditions.
• Internal and external stakeholder engagement to address challenges.
• Emmi Operational Excellence (EOE) optimization program for waste reduction.
• Investment in renewable energy sources (solar, hydroelectric).
• Centralized supply chain management for better coordination.
• Insourcing approach to digital marketing for increased agility.
• Development of standardized ERP system for international locations.
• Focus on employee development and succession planning.
• Improved quality management system and training programs.
• Risk management process for raw materials, materials, and suppliers.
• Targeted monitoring of water consumption and implementation of improvement measures.

Supply Chain Management

Responsible Procurement

• Sustainability requirements included in purchasing strategy; focus on animal welfare, feeding, and feed origin in milk procurement.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001:2018, FSSC 22000, ISO 14001

Third-party Assurance: SGS (for greenhouse gases, energy and water consumption, waste generation, and material use); KPMG AG (for remuneration report and consolidated financial statements)

Sustainable Products & Innovation

• Emmi pur yogurt with simple composition

Environmental Metrics

ESG Focus Areas

• Sustainable dairy
• Reducing greenhouse gases
• Avoiding waste
• Developing employees
• Water

Environmental Achievements

• Reduced Scope 1 and 2 greenhouse gas emissions by 24% compared to the 2014 baseline.
• Reduced food waste in Switzerland by more than 10%.

Social Achievements

• Filled 82% of key positions with internal employees in 2020.
• 59% of employees had documented personal development goals in 2020.

Governance Achievements

• Revised risk management in 2020 and approved a new Risk Management Policy in January 2021.

Climate Goals & Targets

Environmental Challenges

• Did not achieve waste reduction target (food and packaging material waste reduction by 20%).
• Slow progress with packaging and recycling systems.
• Challenges in reducing water consumption in risk regions (Tunisia and California).

Mitigation Strategies

• Evaluating new approaches for wastewater sludge disposal in Tunisia (biogas, compost, drying, fuel).
• Created a new expert team for sustainable packaging in 2020.
• Implementing measures to reduce water consumption at various sites (e.g., optimizing container cleaning, reducing acid cleaning).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement guideline developed in 2020, including ethical and ecological principles.
• Sustainability considerations integrated into supplier selection.

Climate-Related Risks & Opportunities

Physical Risks

• Droughts, floods

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (Switzerland), ISO 50001 (Europe), FSSC 22000 (Food Safety System Certification)

Third-party Assurance: KPMG AG (financial statements), SGS (environmental data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• beleaf plant-based product line
• Emmi Caffè Drink
• Emmi Caffè Latte (new recipe with 100% natural ingredients)

Awards & Recognition

• Award from the canton of Lucerne’s disability insurance fund for reintegration measures.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Water Stewardship
• Waste Reduction
• Employee Development
• Sustainable Dairy Farming
• Social Impact

Environmental Achievements

• 60% reduction in own emissions (Scope 1 & 2) vs. 2014
• 25% reduction in emissions along the value chain (Scope 3) vs. 2019
• 50% reduction in waste and food waste vs. 2017
• Zero waste to landfill
• 100% recyclable packaging
• 50% reduction in water use in risk areas vs. 2019
• 15% reduction in own water consumption in non-risk areas vs. 2019

Social Achievements

• 100% of Emmi employees have a development plan in place
• 50% of all vacancies filled by internal candidates
• 100% of Emmi's milk suppliers worldwide produce to an above-average local standard
• Sustainable goat milk program in Netherlands
• Vitalait Foundation program in Tunisia to improve working conditions and income of small-scale dairy farmers

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions along the value chain
• Water scarcity in certain regions
• Reducing food waste
• Achieving 100% recyclable packaging

Mitigation Strategies

• Science Based Targets to reduce emissions all along the value chain by 25% by 2027
• Water Reduction Roadmap to reach 50% reduction by 2027
• Initiatives to increase utilization of whey, reduce losses and rejects, and cooperate with trade/industry to reduce food waste
• Design for recycling, use of monomaterials, and creating framework conditions for recyclable packaging

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Milk sourcing criteria

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Waste Warrior Brand

Environmental Metrics

ESG Focus Areas

• Developing employees
• Sustainable dairy
• Reducing emissions
• Reducing waste
• Reducing water use

Environmental Achievements

• Reduced company greenhouse gas emissions by 10% compared to the previous year; 25% reduction since 2014.
• Reduced waste by 4% and food waste by 5% compared to the previous year.
• 85% of electricity from renewable sources.

Social Achievements

• Three out of four employees in Switzerland (+17% compared to the previous year) have a development plan. Almost half internationally.
• 29% of vacancies filled with internal candidates.
• Launched “Let’s move” campaign resulting in CHF 21,121 donation to Right To Play.

Governance Achievements

• Developed a Group-wide sustainable procurement policy in 2022.
• Introduced whistleblowing regulations throughout the Emmi Group.
• Developed new Organisational Regulations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic, global inflation, and energy crisis negatively impacted sustainable milk production.
• Skyrocketing feed prices created financial difficulties for dairy farmers.
• Droughts caused feed shortages in the USA.
• Decreased demand for organic dairy products in Germany due to price increases and cost of living.
• Lack of recycling systems in North and South America and Tunisia.

Mitigation Strategies

• Emmi's subsidiary Centrale Laitière de Mahdia supports small farmers in Tunisia.
• Emmi Roth USA joined the Dairy Sustainability Alliance.
• Gläserne Molkerei launched a biodiversity initiative.
• Molkerei Biedermann works with sheep's milk suppliers to improve sustainability.
• Implemented energy efficiency measures and diversified energy supply with renewable energies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group-wide Supplier Code of Conduct
• Sustainability criteria in strategic sourcing
• Supply chain mapping for child labor risk assessment.

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods

Transition Risks

• Regulatory changes
• Market shifts
• Energy crisis

Opportunities

• Development of energy-efficient products
• Renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001 (Swiss sites), ISO 50001 (most European sites), ISO 45001 (Centrale Laitière de Mahdia)

Third-party Assurance: SGS (environmental figures), KPMG AG (financial statements)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Emmi Jogurtpur with Rainforest Alliance-certified coffee and cocoa
• Beleaf vegan cheese alternative
• Emmi Caffè Latte with recycled polypropylene

Awards & Recognition

• 2022 cero residuo certification for Lácteos de Navarra

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Water Consumption
• Waste Reduction
• Animal Welfare
• Sustainable Dairy Industry

Environmental Achievements

• 60% reduction in Scope 1 & 2 emissions vs. 2014
• 25% reduction in Scope 3 emissions vs. 2019
• 50% reduction in own water consumption in risk areas vs. 2019
• 15% reduction in own water consumption in non-risk areas vs. 2019
• 50% reduction in waste vs. 2017
• Zero waste disposal in landfills vs. 2017
• 100% recyclable packaging (Switzerland)
• 30% recycled materials in plastic packaging (Switzerland)
• Launched recyclable PET bottle for milk and dairy products in collaboration with Coop

Social Achievements

• 100% of employees have a development plan
• 50% of vacancies filled by internal candidates
• 80% of milk volume purchased by Quillayes Surlat (Chile) is certified with the AENOR animal welfare label
• Co-initiated the industry initiative “KlimaStaR Milk” in Switzerland

Governance Achievements

• All members of the Board of Directors re-elected for a new term
• Oliver Wasem appointed as CFO

Climate Goals & Targets

Environmental Challenges

• Challenging market environment
• Negative acquisition effects
• Negative currency effects
• Lower milk prices in Switzerland
• Milk shortage in Tunisia
• Anticipated reduction in volumes in the US dessert business
• High inflation rates
• High volatility in global supply chains
• Pressure on personnel costs
• Competitive market in Switzerland
• Import and price pressure in Switzerland

Mitigation Strategies

• Profitable volume growth
• Continuous portfolio transformation
• Efficiency programmes
• Cost discipline
• Strategic acquisitions in Brazil, Switzerland, and Europe
• Further efficiency and cost-saving initiatives
• Continuous portfolio transformation

Supply Chain Management

Responsible Procurement

• Emmi Supplier Code of Conduct
• 80% of milk volume purchased by Quillayes Surlat (Chile) is certified with the AENOR animal welfare label

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Recyclable PET bottle for milk and dairy products