Climate Change Data

Pipestone Management

Climate Impact & Sustainability Data (2019, 2021)

Reporting Period: 2019

Environmental Metrics

Total Energy Consumption:1.169 kWt/lbs of weaned pig in 2019
Water Consumption:3.25 gallons per lb of weaned pig in 2019

ESG Focus Areas

  • Animal Welfare
  • Employee Well-being
  • Environmental Stewardship

Environmental Achievements

  • Reduced feed use per pound of live weight from 5.07 lbs in 2017 to 4.91 lbs in 2019.
  • 70% of sow farms utilize under barn manure storage (reducing GHG emissions compared to lagoons).
  • Produced enough manure to organically fertilize 73.7% of the corn needed to feed their sow farm in 2019.

Social Achievements

  • Launched a new safety program, resulting in a decrease in the Total OSHA Recordable Injury Rate from 7.24% in 2017 to 7.66% in 2019.
  • Over 80% of employees reported being satisfied or very satisfied with working at Pipestone System in 2019.
  • Invested nearly $200,000 in local communities through the Pipestone Cares program in 2019.

Governance Achievements

  • Pipestone Holdings Board of Directors oversees all activities and recognizes the impact of sustainability practices on financial performance.
  • Commitment to transparency and accurate data reporting in accordance with GRI standards.

Climate Goals & Targets

Medium-term Goals:
  • Develop and implement a surveillance program to proactively monitor and document antibiotic resistance in pigs and pig environments (2020).
  • Collaborate with outside experts to collect and analyze surveillance data (2020).
  • Convene expert panel to validate carbon footprint calculations for swine production (2020).
  • Optimize on-farm feeding protocols and diet formulation to manage feed use to pig requirements plus or minus 5% as validated by an expert nutrition panel (2020).
  • Design feeding systems and feeding protocols to reduce waste to less than 2% of total use (2020).
  • Fully compliant nutrient management programs with state and 3rd party verification at all sites (2020).
  • Complete direct injection manure application for greater than 95% of gallons (2020).
  • Complete manure application in 3 weeks or less in total time each year (2020).
  • Document gallons of manure produced per sow and set usage goals (2020).
  • Continue to document energy use and set usage goals (2020).
  • Validate new technology and equipment to lower total energy use (2020).
  • Explore renewable energy options (2020).
  • Continue to document total water use and set usage goals (2020).
  • Validate new technology, equipment, and protocols to reduce total water usage (2020).
Short-term Goals:
  • Establish, implement, and monitor a tiered Antibiotic Use Policy (2020).
  • Identify 3rd party certification options for validation of Antibiotic Use Policy (2020).
  • Manage farm team turnover at 35% or less (2020).
  • Manage OSHA recordable injury rate at 7% or less (2020).
  • Achieve employee satisfaction scores of satisfied or higher on >80% of the team (2020).
  • Re-invest $0.05 per pig in our local communities every year through Pipestone Cares program (2020).
  • Complete 10 hours of formal training with each team member annually using MyPipestone courses (2020).
  • Complete formal leadership training for 25 or more team members (2020).
  • Better document and monitor waste that ends in the landfill (2020).
  • Implement a plan and protocols for plastic recycling at all sites (2020).
  • Set goals for waste management (2020).

Environmental Challenges

  • Inaccurate carbon footprint calculations due to limitations of available tools.
  • High employee turnover rate (29.4% in 2019).
  • Data limitations in accurately measuring solid waste sent to landfills.
Mitigation Strategies
  • Working with the National Pork Board to develop more accurate carbon footprint calculation tools.
  • Implementing initiatives to improve employee satisfaction and reduce turnover.
  • Implementing water meters for more accurate water usage monitoring and trialing methods to better document solid waste.

Supply Chain Management

Responsible Procurement
  • Working to develop a more formal policy to evaluate new supply chain partners addressing risks for the environment, animal welfare, employee health and other sustainability issues (2020).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Reporting Period: 2021

Environmental Metrics

Renewable Energy Share:50.5%
Total Energy Consumption:98,334,226 KwH
Water Consumption:563,437,353 gallons

ESG Focus Areas

  • Animal Care
  • People
  • Planet

Environmental Achievements

  • 50.5% renewable energy use
  • Water meters implemented on 75% of sow farms
  • 8% reduction in landfill waste
  • Recycling programs implemented at 9 sow farms and office locations
  • 57% less energy used with heat mats compared to heat lamps

Social Achievements

  • Received Great Place to Work award with 96% employee satisfaction
  • Formalized Earned Education Days program
  • Launched GiVE program for community investment
  • Donated 494,000 pork servings to food banks through MEAT the Need campaign
  • Formed a Diversity, Equity, & Inclusion (DEI) committee

Governance Achievements

  • Identified third-party certification option for validation of Antibiotic Use Policy

Climate Goals & Targets

Long-term Goals:
  • Offer an investment opportunity for a farmer-owned carbon farming company
  • Reduce energy usage by 20% by 2025
  • Reduce paper usage by 30% by 2025
  • Utilize 100% bio-degradable packaging materials by 2023
  • Reduce waste by 50% by 2022
Medium-term Goals:
  • Optimize on-farm feeding protocols and diet formulation to manage feed use to pig requirements +/- 5% of total feed used
  • Track antibiotic use on 10% of US market hogs
Short-term Goals:
  • Reduce energy use by 5%
  • Implement recycling program on 50% of sow farms
  • Manage OSHA recordable injury rate at 5% or less
  • Manage farm team turnover at 33% or less
  • Achieve employee satisfaction scores of satisfied or higher on >80% of the team

Environmental Challenges

  • High employee turnover (37%)
  • California's Proposition 12 requirements impacting animal welfare and production
  • African Swine Fever threat
  • Low payments for carbon credits discouraging farmer participation
  • Challenges in implementing recycling programs at rural farm sites
Mitigation Strategies
  • Implemented various initiatives to improve employee satisfaction and reduce turnover
  • Retrofitted some farms to meet Prop 12 requirements
  • Developed biosecurity protocols to prevent ASF
  • Researching and developing new models/approaches for carbon credit programs
  • Established PIPESTONE recycling route to improve recycling access

Supply Chain Management

Responsible Procurement
  • Pipestone Responsible Imports program for feed ingredients

Climate-Related Risks & Opportunities

Opportunities
  • Carbon credit sales

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

  • Goal 1: No Poverty
  • Goal 2: Zero Hunger
  • Goal 4: Quality Education
  • Goal 7: Affordable & Clean Energy
  • Goal 8: Decent Work and Economic Growth
  • Goal 12: Responsible Consumption and Production

Pipestone's initiatives contribute to these goals through various programs and donations.

Awards & Recognition

  • Great Place to Work certification