Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Food Safety and Security
• Environmental Responsibility
• Social Development
• Responsible Supply Chain
• Diversity & Inclusion
• Occupational Health & Safety
• Sustainable Innovation

Environmental Achievements

• Increased renewable electricity to 55% (from 46% in 2020)
• Reduced carbon emission intensity by 12% YoY (Kg CO2e per average FTE and Kg CO2e per EUR 1,000 of revenues)
• 100% of all new innovations passed Marel’s Sustainability Innovation Scorecard

Social Achievements

• Implemented flexible working policy in all markets
• Trained 76% of managers on diversity & inclusion and 77% company-wide on HSE
• Marel employees raised EUR 250,000 for the Red Cross to improve food security in Brazil
• Total Recordable Incidents Rate at 0.78 (from 0.91 in 2020)
• Gender diversity 44/56 at Executive level, 43/57 at Board level
• Overall female ratio 17.4% (from 16.4% in 2020)

Governance Achievements

• Incorporated ESG into incentive scheme for management
• Launched Whistleblower Platform
• Committed to setting science-based targets and TCFD Climate-Related Financial Disclosures
• Committed to becoming net zero by 2040
• Launched Marel's first Sustainability Program

Climate Goals & Targets

Environmental Challenges

• Climate change
• Diet-related diseases
• Water scarcity
• Lack of food traceability
• Food safety risks
• Supply chain disruptions

Mitigation Strategies

• Supporting customers in minimizing resource use and carbon emissions while improving operational efficiency, safety, and consistency
• Ensuring all new innovations embed material sustainability enhancements using the sustainability innovation scorecard
• Focusing on responsible supply chain management, procurement and purposeful travel
• Implementing processes for integrating ESG data from newly acquired companies

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier sustainability program involving EcoVadis

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, TCFD

UN Sustainable Development Goals

• SDG 2
• SDG 9
• SDG 12

Supporting sustainable food production, inclusive and sustainable industrialization, and sustainable consumption and production patterns

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Supply Chain
• Food Waste Reduction
• Animal Wellbeing
• Occupational Health & Safety
• Talent Attraction and Retention
• Circular Economy
• Sustainable Innovation
• Governance

Environmental Achievements

• Reduced absolute Scope 1 and 2 GHG emissions by 42% by 2030 from a 2021 base year
• Reduced absolute Scope 3 GHG emissions by 25% by 2030 from a 2021 base year
• Reduced CO2 emission intensity per EUR revenues by 34% from 2019 baseline
• Increased renewable electricity use to 71% (from 53% in 2021)
• Recycled 71% of waste (2021: 61%)
• Reduced total waste generated by 8%
• Science-based targets validated

Social Achievements

• Increased female representation in top 3 management levels to 20.1% (from 19.8% in 2021)
• 91% of managers created engagement action plans with their teams
• Total recordable incident rate reduced to 0.67 (from 0.78 in 2021)
• 52% of employees trained on diversity & inclusion
• 85% of employees trained on health and safety
• Launched Marel Campus for employee skill development
• Committed to implementing global parental leave policy in 2023

Governance Achievements

• 30% of employees have an ESG incentivized pay component
• Received a bronze rating in the EcoVadis sustainability assessment (55 points, above sector average)
• Launched a circularity-enhanced sustainability scorecard
• 100% of new innovations passed Marel’s sustainability scorecard

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (physical and transition risks)
• Supply chain disruptions
• Talent acquisition and retention

Mitigation Strategies

• Developed climate risk and opportunity analysis aligned with TCFD guidelines
• Established a Responsible Sourcing team to strengthen supplier engagement
• Implemented a new sustainability scorecard
• Investing in employee training and development (Marel Campus)

Supply Chain Management

Supplier Audits: 37% of suppliers (based on spend) signed up to Marel’s supplier code of conduct since start of 2022

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis rating for key suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures
• Impacts on marine ecosystems

Transition Risks

• Policy and legal risks
• Changing demand
• Resource availability
• Shift in consumer preferences

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, SBTi, EcoVadis

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient equipment and software

Awards & Recognition

• Diversity's Trailblazer in the Blaze Inclusion Awards (2022)

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy
• Waste
• Water management
• Circular economy
• Substances of concern
• Food safety
• Animal welfare
• Food waste
• Own workforce
• Training and skills development
• Health and safety
• Consumers and end-users
• Digitalization and innovation

Environmental Achievements

• Reduced Scope 1 and 2 carbon emissions by 18%, Scope 3 by 17% between 2021 and 2023
• Powered 88.4% of manufacturing facilities on renewable electricity (up from 81% in 2022)
• Reduced total waste generated by 7%
• Increased recycling of waste to 8% (2022: 8%)
• Reduced CO2 emissions by 3.4 million kilograms by converting 80% of inventory transport from air to sea freight
• Achieved an ‘Excellent’ BREEAM-NL rating for the new Global Distribution Center in Eindhoven

Social Achievements

• Launched paid parental leave for all primary caregivers (implemented January 1, 2024)
• Launched Marel Women’s Network Employee Resource Group
• Improved employee engagement survey participation rate to 83%
• Maintained total recordable incident rate significantly below industry benchmark

Governance Achievements

• Updated recruitment processes and manager training to improve diversity and inclusion
• Achieved 43% female representation on the Board of Directors and 50% on the Executive Board
• Obtained ISO/IEC 27001 certification for Marel’s digital cloud platform
• 95% of employees completed Code of Conduct training

Climate Goals & Targets

Environmental Challenges

• High inflation, rising interest rates, supply chain disruptions
• Labor scarcity, rising input costs
• Soft orders for solutions and large projects due to customer investment delays
• Reduced pork consumption in Europe
• Uncertainty related to increased taxation on salmon farming
• Slowdown in the textured vegetable protein market

Mitigation Strategies

• Implemented Focus First operating model to improve customer centricity and accountability
• Took decisive actions to improve operational efficiency and financial performance
• Improved working capital and cash flow
• Reset financial targets and updated outlook for the mid-term
• Strategic investments in Latin America for meat processing
• Strategic partnership with Muyuan to transform China’s pork industry
• Continued investments in automating and digitalizing spare parts delivery model
• Implemented cost price management processes
• Consolidated European warehouses in the Global Distribution Center in Eindhoven

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Marel Supplier Code of Conduct
• EcoVadis rating for key suppliers
• Increased due diligence and risk assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, CSRD

Certifications: ISO/IEC 27001, BREEAM-NL

Third-party Assurance: KPMG ehf.

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production

Marel's innovations focus on reducing food waste, increasing resource efficiency, and promoting sustainable food production.

Sustainable Products & Innovation

• MS 2750 filleting machine
• RevoBreader 1000
• Nuova-i eviscerator
• StreamLine 457
• Innova ProFlow Breast Meat software

Awards & Recognition

• Marel Gainesville received safety award from Greater Hall Chamber of Commerce