Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainability

Environmental Achievements

• 90% of carrier and materials are supplied in bulk and added directly into production to minimise packaging waste and labour requirements
• 2.5% of the production volume as product and material waste due to manufacturing and cleaning activities. This product and material waste is collected by a waste contractor to be environmentally recycled as far as possible
• 100% liquid bulk ingredients are stored in bunded storage silos; liquid bulk deliveries are accepted only when the site drainage system is blocked with a bung to prevent accidental spills from entering into the general sewerage system
• a dust extraction system is used to minimise dust in the production area and prevent dust from being emitted into the environment
• digital marketing brochures are created that can easily be emailed or viewed via the website as opposed to being printed and posted out
• travel is managed to ensure trips are multi-purpose or alternatively using telephones, Skype and conference centres and webinars
• a paperless office policy is encouraged
• fish & marine oils used for our products are processed by-products from farmed fish productions for human consumption or sourced from suppliers certified for sustainable fishing
• raw materials used within products are primarily common minerals in high grade quality from plentiful natural resources
• pre-used reconditioned & cleaned intermediate bulk containers are used for packaging & supply of bulk liquids

Social Achievements

• Anpario is an inclusive organisation where everyone is treated equally irrespective of gender, nationality, marital status, colour, race, ethnic origin, creed, sexual orientation or disability
• Employees embody Anpario’s key values of “Integrity,Teamwork, Innovation and Leadership”
• Anpario supports local community initiatives and employee charity work including supporting a local school to care for chickens
• has several apprentices places
• recruits graduates and doctorates in disciplines such as biosciences, accountancy, law and HR
• provides ongoing professional training support, extensive coaching and management development programmes
• provides financial and study leave for professional and work related qualifications

Governance Achievements

• Anpario applies the Quoted Companies Alliance Corporate Governance Code (“QCA Code”)
• The Board regularly reviews the operational performance and plans of the Company and determines the Company’s strategy, ensuring that the necessary financial and human resources are in place in order to meet the Company’s objectives.
• The Board also sets the Company’s values and standards, mindful of its obligations to shareholders and other stakeholders.
• The Board delegates its authority for certain matters to its Audit, Remuneration and Nomination Committees.
• The Board approves and reviews the terms of reference of each of the Committees

Climate Goals & Targets

Environmental Challenges

• extreme weather conditions, animal diseases and political uncertainty
• African Swine Fever (“ASF”)
• US – China trade dispute
• challenging economic situation in Turkey
• difficult trading conditions in Saudi Arabia
• geopolitical tensions in the Middle East
• severe climatic conditions, including drought, in Australia
• financial difficulties of a significant customer in Papua New Guinea
• Brexit
• COVID-19 pandemic

Mitigation Strategies

• Costs continue to be managed closely and our strategy to market higher value-added products and develop more direct routes to market has helped to improve gross margins
• decision to enter the poultry industry in China two years ago coupled with our business development initiatives focused on poultry products in the wider Asia region
• strengthened and expanded our sales team in the US
• focusing on new territories in the Middle East
• a number of business development initiatives underway in Australia including targeting the pet food industry
• launch of a more direct sales channel in Australia to target the smaller farmers and other niche segments such as pigeons and the backyard layer market
• putting contingency arrangements in place for Brexit
• purchasing key raw materials and storing them in stock
• developing enhanced production contingency plans
• Anpario’s regional sales network is enabling the Group to continue to support local customers

Supply Chain Management

Responsible Procurement

• responsible procurement policies are in place to source raw materials to high specification and rigorous quality standards
• Anpario seeks to partner suppliers operating to highest standards of honesty and integrity
• suppliers operate rigorous quality standards and comply with all applicable ethical labour and, trade laws and regulations, including the requirements of The Modern Slavery Act 2015

Climate-Related Risks & Opportunities

Physical Risks

• Climate and environmental changes

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: QCA Code

Certifications: UFAS, FEMAS

UN Sustainable Development Goals

• Goal 2: Zero hunger
• Goal 3: Good health and well-being
• Goal 6: Clean water and sanitation
• Goal 13: Climate action
• Goal 14: Life below water
• Goal 12: Responsible consumption and production

Anpario’s products work in tune with nature’s inherent processes within each of the animal species to support production of safe and affordable food for a growing population and can help to conserve, protect and enhance natural resources; improve rural livelihood, equity and social well-being through productive farming; and enhance resilience of people, communities and ecosystems.

Sustainable Products & Innovation

• Orego-Stim®, Anpro®, pHorce®
• Anpro® mycotoxin binder range
• natural pellet binder in our Mastercube ™ range
• natural insecticide to combat red mite

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Circular Economy
• Workforce Diversity
• Community Investment
• Board Diversity
• Responsible Procurement
• Human Rights
• Supply Chain Sustainability

Environmental Achievements

• 39% reduction in Carbon Intensity (cumulative reduction of 62% since 2019)
• Awarded ISO 14001 certification for Environmental Management Systems
• Reduction in waste produced by 120 Tons (28%), cumulative reduction of 165 Tons (34%) since 2019
• Reduction in water consumed by 408 cubic meters (27%), cumulative reduction of 877 cubic meters (44%) since 2019
• Installation of solar panels at head office and manufacturing site

Social Achievements

• Donation of £25,000 to the Red Cross Ukraine Humanitarian Crisis appeal
• Donation of £10,000 each to Nottingham Hospitals Charity and Doncaster and Bassetlaw Teaching Hospitals
• Donation and distribution of 50,000 medical grade face masks to local care homes
• Introduction of Give Something Back Volunteer Days Scheme globally
• Support for Weston Park Cancer Charity and Dementia UK

Governance Achievements

• Launched a new board-evaluation process
• Launched a new strategic review process
• Updated the strategic plans and focus
• Implemented changes to remuneration policy
• Achieved ISO 14001 accreditation and training internal auditors

Climate Goals & Targets

Environmental Challenges

• Supply chain disruption and significant raw material and logistics price inflation
• Reduced demand for animal feed and additives due to unprofitable production by farmers
• Lower volumes in China due to Covid lockdowns
• Weak trading in early 2023
• Avian influenza
• Strength of the US dollar and tightening liquidity in developing countries
• Loss of a significant customer for feed hygiene product due to organic acid price increases

Mitigation Strategies

• Implementation of sales price increases
• Increased inventory to ensure customer service levels
• Investment in sales channels and storage capacity
• Energy-saving initiatives
• Focus on margin recovery and cost control
• Investment in production automation
• Business development initiatives in aquaculture and ruminant markets
• Recruitment of additional sales personnel
• ‘Produce More for Less’ campaign

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prompt payment to suppliers
• SEDEX membership

Climate-Related Risks & Opportunities

Physical Risks

• Climate and environmental changes

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products
• Reduction of methane output

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 3: Good Health and Well-being
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 14: Life Below Water
• SDG 17: Partnerships for the Goals

Anpario's products and initiatives contribute to these goals through sustainable food production, reduced antibiotic use, improved animal health, and environmental protection.

Sustainable Products & Innovation

• Optomega® Algae
• Orego-Stim® Forte

Awards & Recognition

• Giving Back: Community Business Hero Award at the Sage Impact Awards

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable Development
• Supplier chain transparency
• Employee well-being
• Community engagement

Environmental Achievements

• Reduced total Scope 1 and 2 greenhouse gas emissions from 77.3 tCO2e in 2022 to 46.6 tCO2e in 2023 (40% reduction)
• Reduced carbon intensity by 35% (from 2.3 tCO2e per £m sales to 1.5 tCO2e per £m sales)
• Reduced waste generated by 79 tons (25%)
• Reduced water consumption by 268 cubic meters (27%)
• Received the King's Award for Enterprise for Sustainable Development

Social Achievements

• Accreditation to membership of SEDEX (Supplier Ethical Data Exchange)
• Give Something Back Volunteer Day scheme introduced globally
• Fundraising for Dementia UK and Save the Children

Governance Achievements

• Updated Company articles to enable virtual meetings
• Welcomed Tim Pollock to the Board as a non-executive director
• Maintained robust governance structures in line with QCA Code

Climate Goals & Targets

Environmental Challenges

• Challenging year for the global agricultural industry due to energy, agricultural commodity, and raw material prices
• Excessive stock levels in the animal nutrition sector leading to destocking
• Global events affecting energy, agricultural commodity, and raw material prices
• Significant margin pressure and lower consumption of meat protein
• Reduced use of specialty feed additives due to cost reduction efforts by producers
• High opening inventory levels
• Disease outbreaks (avian influenza and African swine fever)
• Financial pressures on producers due to subdued meat protein consumption
• Increased price competition between additive suppliers

Mitigation Strategies

• Tough decisions to reduce costs and improve margins
• Sensitive sales price increases
• Cost reduction program in staffing and administrative expenses
• Investment in automation in production facility
• Working capital reductions following reduced supply chain and logistics risks
• Strong focus on optimizing expenditure and operating more efficiently
• Restructuring and redundancy process to right-size operations
• Development of high quality feed additive solutions
• Expansion and strengthening of sales and distribution channels
• India partnership agreement for local blending of Orego-Stim®
• Appointment of a distributor for Canada

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• SEDEX membership
• Due diligence to ensure compliance with ethical labor, trade laws, and regulations

Climate-Related Risks & Opportunities

Physical Risks

• Climate and environmental changes

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, UFAS, FEMAS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 12
• SDG 13
• SDG 14
• SDG 17

Details in the Environment and Social Responsibility Report

Sustainable Products & Innovation

• Orego-Stim®
• Optomega® Algae
• Orego-Stim® Forte

Awards & Recognition

• King's Award for Enterprise for Sustainable Development