Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic sustainability
• Social sustainability
• Environmental sustainability
• Animal welfare
• Occupational Health and Safety
• Employee welfare
• Resource efficiency
• Community engagement
• Support to vulnerable communities
• Support to educational and healthcare institutions
• Skills development
• Food security

Environmental Achievements

• Replacement of an old wood-fired incinerator at Mongu Abattoir with a 200 kg/hour diesel incinerator complying with EU standards
• Construction of two new agrochemical storage facilities at Nampamba and Chambatata Farms
• Installation of a 50,000-litre above-ground diesel tank at the Zamhatch operation in Mpongwe
• Installation of three 22,500-litre above-ground diesel tanks at Huntley Farm
• Construction of group housing for weaned calves at Kalundu Dairy Farm
• Construction of lairage for broiler chickens at Huntley Farm
• Replacement of a significant portion of the roof at the Huntley Farm cattle feedlot
• Upgrade of the agrochemical store at Huntley Farm to improve ventilation and segregation
• Installation of bulk water flow meters to enhance measurement and monitoring of water consumption
• Commissioning of water yield sustainability studies at Mpongwe, Huntley and Kalundu Farms

Social Achievements

• Inclusive business model sourcing raw materials from rural communities (100% beef, 80% pork, 70% broiler chickens, 85% maize from small-scale farmers)
• Regular community engagement consultations, especially for developmental projects
• Weekly foodstuff donations to 21 institutions hosting vulnerable people
• Funding of Mpongwe School and Mpongwe Medical Clinic (US$170,000)
• Support to community and government schools and healthcare institutions
• Support to traditional ceremonies and sporting activities
• Significant employment (7,082 staff, 14% female, 99% Zambian)
• Specific trainings in food safety, occupational health and safety, and safe handling of hazardous materials

Governance Achievements

• Compliance with Lusaka Securities Exchange (LuSE) Corporate Governance Code and Quoted Companies Alliance (QCA) Corporate Governance Code
• Board oversight through its Environmental and Social Committee
• Environmental and social action plan (ESAP) agreed with development finance partners
• Dedicated environmental and social corporate team (36 employees)
• Formal risk assessments carried out quarterly at group, company, and division levels
• Independent Internal Audit function reporting directly to the Audit Committee
• Detailed policies and procedures covering Incident Reporting, Anti-Bribery and Corruption (ABC), and Whistleblowing
• Implementation of a Group Code of Ethics and Conduct
• Annual self-assessment of Board performance

Climate Goals & Targets

Environmental Challenges

• Adverse macro-economic fundamentals worsened by the COVID-19 pandemic
• Reduced customer spending due to high inflation and unemployment
• Reduced electricity supply (load shedding), resulting in high diesel generator fuel expenditure
• 49% increase in electricity tariffs
• Kwacha depreciation against the US Dollar (54%)
• High feed prices impacting input costs and margins
• Supply chain disruptions
• Volume declines in some product lines
• Escalating input costs
• Insufficient electricity supply affecting winter wheat yield
• Export restrictions on feed

Mitigation Strategies

• Focus on core businesses generating sustainable cash flows
• Debt reduction to release cash for reinvestment
• Optimising existing retail store performance
• Driving efficiencies to enable sustained top-line growth and cost optimisation
• Sale of Sinazongwe Farm (USD10 million)
• Prospective disposal of Chiawa farm
• Robust insurance policy on biological stock and grain inventory
• Implementation and enforcement of safety protocols

Supply Chain Management

Responsible Procurement

• Sourcing raw materials from rural communities

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts

Reporting Standards

Frameworks Used: IFC Performance Standards

Certifications: ISO 22000 Food Safety Management certification (Novatek)

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 2: Zero Hunger
• SDG 3: Good Health & Well-being
• SDG 4: Quality Education

The company's initiatives contribute to these goals through inclusive business models, community support, food donations, and educational investments.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Significant reduction in Greenhouse Gas emissions (Scope 1) of more than 30% from 2021 to 2024 due to interventions implemented to reduce GHG emissions. Investment in Environmentally Controlled Houses (ECHs) in Poultry contributed to lower emissions.
• Stopped using charcoal in Poultry division, promoting tree conservation and reducing GHG emissions.
• Invested in additional water monitoring tools.
• Successfully piloted a heat recovery project at Chisamba Huntley farm.

Social Achievements

• Feeding program supporting over 5,000 individuals with a spend of just under US$2 million in the last eight years.
• Investment in education and healthcare for employees, their families, and communities.
• Support to Chibombo boarding school with day-old chicks for rearing and sale, achieving a 93% success rate.
• Support to more than ten annual traditional ceremonies.
• Awarded by the Zambia Revenue Authority as the best taxpayer in 2024 in the agriculture sector under the large enterprise category.

Governance Achievements

• Adopted the Quoted Companies Alliance (QCA) Corporate Governance Code on a ‘comply or explain’ basis.
• Established a formal governance framework complying with the LuSE code.
• Implemented a Group Code of Ethics and Conduct, widely disseminated to all stakeholders.
• Implemented detailed policies and procedures covering Incident Reporting, Anti-Bribery and Corruption (ABC), and Whistleblowing.

Climate Goals & Targets

Environmental Challenges

• High inflation and volatile exchange rates.
• Energy deficits leading to rising costs of electricity.
• Local currency depreciation and El Niño weather effects impacting margins.
• Tight monetary policy affecting consumer spending.
• Outbreak of anthrax virus resulting in animal movement restrictions and diminished consumer confidence in beef.
• Drought related decline in yields.
• Load shedding impacting irrigated winter crop.
• High pricing of Stockfeed adversely affecting upstream value chain products.

Mitigation Strategies

• Focus on revenue maximization, volume growth, and cost optimization.
• Continued investment in key strategic assets and divestiture of non-core assets.
• Mitigating load shedding impact on winter crop through a Power Supply Agreement.
• Implementing effective sales strategies and innovation to boost flour demand.
• Accelerated volume turnaround in Beef Division in the second half by prioritizing market share recovery.
• Implementing Global Good Agriculture Practices (Global GAP) and Global Smart certification schemes to enhance food safety.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing policy; local sourcing of raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Floods, droughts, higher than normal temperatures

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFC environmental and social sustainability framework, UN SDGs

Certifications: ISO 22000 (7 manufacturing facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation

Interventions outlined in the Sustainability Report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Taxpayer in 2024 in the agriculture sector (large enterprise category)