Climate Change Data

Sigma Alimentos, S.A. de C.V. and Subsidiaries

Climate Impact & Sustainability Data (2022, 2023, 2Q2024)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:6,200.7 thousand ton CO2e (Scope 3); 375.1 thousand ton CO2e (Scope 1); 165.4 thousand ton CO2e (Scope 2)
Scope 1 Emissions:375.1 thousand ton CO2e
Scope 2 Emissions:165.4 thousand ton CO2e
Scope 3 Emissions:6,200.7 thousand ton CO2e
Renewable Energy Share:62%
Total Energy Consumption:4.723 million GJ
Water Consumption:11.43 million m3
Waste Generated:115,425 tons
Carbon Intensity:0.31 ton CO2e / ton of food (2022)

ESG Focus Areas

  • Environment
  • Wellbeing
  • Health & Nutrition
  • Shared Value

Environmental Achievements

  • 16% reduction in CO2eq emissions related to our plants and transportation fleet, per ton of food produced, compared to 2015
  • 62%+ of the electricity we consume in our production facilities comes from cleaner or renewable sources
  • 7,880+ tons of virgin plastic avoided in our packaging since 2019
  • 1.69 million cubic meters of water reduced compared to the previous year

Social Achievements

  • 43% reduction in accident rate compared to the baseline (2018)
  • 30 hours of average training per employee
  • 8%+ of employees participated in volunteer activities
  • 1.8 times more sales of the Health & Wellness portfolio compared to 2019
  • 20 initiatives implemented in favor of inclusion during 2022

Governance Achievements

  • Substantial improvement of ESG rating by Sustainalytics
  • 6 new ESG policies and 6 more updated
  • Campofrío ranked fourth in the Merco ESG Responsibility Ranking for the food industry in Spain

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce CO2eq emissions by 20% (compared to 2015)
  • Reduce water consumption by 20% (compared to 2018)
  • Achieve 67% renewable energy in plants
  • Reduce accident rate by 22%
  • Increase training hours per employee to 11%
  • Achieve 10% employee participation in volunteering activities
  • Double sales of products launched under the Health and Wellness portfolio (compared to 2019)
  • Achieve 100% GFSI-endorsed certification in plants
  • Achieve 95% of products with nutritional facts on label in markets without mandatory labeling
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Nearly 80% of our carbon footprint comes from raw material sourcing and transportation
  • Climate risks (physical and transitional)
  • Water risk in water-stressed areas
  • Increase in raw material costs, energy costs
  • Competition in food industry
  • Labor shortages and delay of raw material shipping
  • New environmental regulations on carbon emissions and limitations on the use of plastic
  • Changes in labeling and nutritional profiles regulations
  • Cyberattacks
  • Vulnerability of Internet of Things (IoT) systems
Mitigation Strategies
  • Climate Action Program
  • Global Water Management Program
  • Internal carbon price in energy project evaluations
  • Alternative supplier development, inventory sourcing
  • Revenue management, operational efficiencies, inventory control, supplier development, strategic procurement, and financial hedging
  • Differentiation of value offer to our consumers
  • Diversification in procurement sources, and revenue management, and optimization of processes into operations
  • Systems for more efficient water use and reuse, campaigns to raise awareness on the proper use of natural resources
  • Engagement with stakeholders, including industry, government, and the community, nutritional profile improvements and brand launches with niche markets
  • Continuous training and keep updating our security tools
  • Work together with suppliers to assess our environmental impact and find new opportunities for collaboration
  • Continue to pursue environmental investments to meet or even exceed applicable regulations
  • Establish a dedicated team, awareness campaigns and employee training, continuous update of security tools
  • Global strategy and governance definition, perform diagnostic evaluations in all sites, and network segmentation

Supply Chain Management

Supplier Audits: 145 suppliers evaluated in 2022 (35% of raw material spending); 146 suppliers responded to responsible sourcing questionnaire (41% of raw material spending)

Responsible Procurement
  • Sigma Responsible Sourcing Code (launched in 2021)
  • CDP Supply Chain membership
  • ISO 20400 sustainable procurement certification (Europe)

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Drought
Transition Risks
  • New environmental regulations on carbon emissions and limitations on the use of plastic
Opportunities
  • Development of energy-efficient products
  • Renewable energy sourcing

Reporting Standards

Frameworks Used: GRI Standards’ Core Option, SASB

Certifications: ISO 14001, ISO 50001, GFSI

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 17

Initiatives mapped to SDGs in the report

Sustainable Products & Innovation

  • Better Balance brand (plant-based and vegetarian options)
  • Products with improved nutritional profiles
  • Sustainable packaging

Awards & Recognition

  • Campofrío ranked fourth in the Merco ESG Responsibility Ranking for the food industry in Spain
  • Sigma Spain ranked second in the food sector and fourth in the ESG specialized index of the food sector
  • Sigma Mexico ranked sixth in the food sector

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:66%
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:155,667 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Wellbeing
  • Health & Nutrition
  • Shared Value
  • Corporate Governance

Environmental Achievements

  • 1,638+ tons of virgin plastic avoided in packaging in 2023
  • 17% reduction of water usage per ton of food produced (compared to 2018)
  • 17% reduction of CO2eq emissions related to plants and transportation fleet per ton of food produced (compared to 2015)
  • US $7.1 million invested in initiatives related to the mitigation of environmental impacts

Social Achievements

  • 29.5 hours of training given on average to each employee
  • 44% reduction in accident rate (compared to 2018)
  • 11% of employees participating in volunteering initiatives
  • US $16.5 million invested in employee wellbeing initiatives
  • Creation of the Global Nutrition and Health Unit

Governance Achievements

  • Implementation of the Green Capex process
  • Strengthened efforts to monitor suppliers’ responsible practices through CDP and Supplier Assessment Questionnaire

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1 and 2 emissions by 20% by 2027
  • Reduce Scope 3 emissions by 9.8% by 2027
Short-term Goals:
  • Reduce water consumption by 20% by 2025
  • Reduce CO2eq emissions by 20% by 2025
  • Reduce accident rate by 22% by 2025
  • Increase employee training hours by 11% by 2025
  • Increase employee participation in volunteering to 10% by 2025
  • Double sales of products launched under the Health and Wellness portfolio by 2025
  • Achieve 100% GFSI certification by 2025
  • Achieve 95% nutritional information on labels by 2025
  • Increase purchases from suppliers with responsible practices to 80% by 2025

Environmental Challenges

  • Climate change risks (water stress, drought, flooding, extreme temperatures, carbon pricing, regulatory changes)
  • Supply chain disruptions
  • ESG regulatory changes
Mitigation Strategies
  • Climate Action Program
  • Global Water Management Program
  • Supplier evaluations (CDP, Sigma's Supplier Assessment)
  • Collaboration with suppliers on emission reduction projects
  • Biodigesters for waste revalorization
  • Life Cycle Assessments (LCA) of products
  • Diversification of suppliers
  • Market share monitoring
  • Coordination with Security Operation Center for cybersecurity
  • Investment in technology and new packaging

Supply Chain Management

Supplier Audits: 321 suppliers assessed for environmental impacts; 321 suppliers assessed for social impacts

Responsible Procurement
  • Responsible Sourcing Code
  • CDP and Sigma's Supplier Assessment Questionnaires
  • Fomento Lechero Program

Climate-Related Risks & Opportunities

Physical Risks
  • Water stress
  • Drought
  • Flooding
  • Extreme temperatures
  • Forest fires
  • Tropical cyclones
Transition Risks
  • Carbon pricing
  • Regulatory changes
  • Market disruptions
  • Reputation
Opportunities
  • Development of energy-efficient products
  • Use of renewable energy
  • Waste valorization

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Certifications: ISO 14001, ISO 50001, ISO 14064-3, ISO 20400

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • 2
  • 3
  • 4
  • 6
  • 7
  • 8
  • 9
  • 12
  • 13
  • 17

Initiatives aligned with various SDGs, detailed in the report.

Sustainable Products & Innovation

  • Plant-based protein products
  • Products with improved nutritional profiles
  • Products with functional benefits
  • Products with a reduced environmental footprint

Awards & Recognition

  • Biogas project in Campofrío Frescos awarded as one of the 100 best ideas by Actualidad Económica magazine

Reporting Period: 2Q2024

Environmental Metrics

ESG Focus Areas

  • Sustainability

Governance Achievements

  • Achieved higher ratings from Sustainalytics and S&P, consistently above the industry average.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Better-nera®, a plant-based whole cut in Spain