Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Product

Environmental Achievements

• Generated 2.4GWh of solar electricity at Heathwood, Huntingdon and Grimsby sites
• Reduced the weight of plastic in mince packaging by up to 82% in Holland using flow wrap technology
• 76% of meat trays made from 100% recycled PET
• 98% of UK seafood sourced from MSC certified fisheries
• Recalculated Scope 3 emissions at 15.5 million tonnes CO2e

Social Achievements

• Launched Women’s Network
• Published first Group Human Rights Policy and recommitted to UN Guiding Principles
• Hilton Seafood UK received Compassion in World Farming Award for Innovation in Animal Welfare

Governance Achievements

• Signed the EU Code of Conduct on Responsible Food Business and Marketing Practices
• Science Based Targets approved, signed Business Ambition for 1.5°C pledge

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• High emissions from beef production (80% of total footprint)
• Deforestation and biodiversity loss from soy consumption
• Consumer demand for lower-emission foods
• Potential for carbon pricing to increase costs

Mitigation Strategies

• Developing alternative sourcing strategies
• Implementing tailored decarbonisation plans across operations
• Advocating for deforestation due diligence legislation
• Investing in acquisitions and diversification to gain market share in lower emission proteins
• Working towards net zero by reducing emissions from factories and supply chains

Supply Chain Management

Supplier Audits: 100% of high-risk primary suppliers audited

Responsible Procurement

• Foods Connected system for supplier performance management and risk assessment
• HFG Supplier Social Code of Conduct
• GFSI certification for 93% of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Storm and flood disruption in supply chains

Transition Risks

• Reduced revenue from higher emission foods due to consumer shifts
• Reduced revenue from higher emission foods due to carbon pricing

Opportunities

• Reduced energy costs through decarbonisation
• Revenue growth from lower-emission products
• Revenue from supply chain management services and data provision

Reporting Standards

Frameworks Used: TCFD, SASB, UNGC

Certifications: MSC, BRC, FSSC 22000, ASC, GlobalGAP, BAP

Third-party Assurance: GEP Environmental (limited assurance)

UN Sustainable Development Goals

• SDG 2
• SDG 5
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 15

Initiatives aligned with various SDGs, including sustainable food production, gender equality, renewable energy, decent work, responsible consumption and production, climate action, life below water, and life on land.

Sustainable Products & Innovation

• Vegan and vegetarian products (Dalco Foods)
• Blended meat and vegetable products
• Products with lower fat, salt, and sugar content

Awards & Recognition

• CDP Supplier Engagement Leader
• Compassion in World Farming Innovation in Animal Welfare Award

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Product

Environmental Achievements

• Achieved A- rating from CDP for Climate Change
• 14% reduction in Scope 3 emissions
• 70% recycled content across plastic packaging, Group-wide
• 95% of packaging materials are now recyclable in APAC
• Launch of products at Hilton Seafood UK with 30% recycled coastal plastics, removing 240 tonnes of plastic from the environment
• 100% of purchased electricity at several European sites is from renewable sources
• Installed 1.5MWp of additional solar generation

Social Achievements

• Achieved 33% of women in leadership across Hilton Foods
• Established Group Wellbeing Framework
• Extended Mental Health First Aider training
• Integrated sustainability objectives into Long Term Incentive Plans (LTIPs) for senior leaders
• Launched new global Supplier Social Responsibility Code of Conduct
• Creation of cross-functional Modern Slavery Working Group
• Implemented best-practice grievance procedure at Hilton Foods UK

Governance Achievements

• Embedded sustainability as a driver of business by announcing specific ESG targets in the Hilton Foods Long-Term Incentive Plan (LTIP)

Climate Goals & Targets

Environmental Challenges

• Rising inflation and global instability impacting food businesses
• Material risks related to product safety, quality, sustainability, biodiversity, greenhouse gases, and human rights
• Ambitious targets requiring significant effort across all pillars
• Reliance on third parties for achieving emissions targets
• Potential for reduced demand for higher-emission foods due to changing consumer preferences and carbon pricing

Mitigation Strategies

• Diversification of business and building a platform for sustainable value creation
• Active management of material risks through engagement across the value chain
• Partnership approach to maximize impact across the food value chain
• Development of detailed decarbonisation plans for own operations and key supply chains
• Investment in sustainable alternatives like cultured meat and plant-based products
• Collaboration with suppliers, academics, NGOs, and government partners to accelerate emissions reductions
• Implementation of efficiency programmes and renewable energy initiatives
• Focus on improving water efficiency and reducing water intensity of operations

Supply Chain Management

Supplier Audits: 58 audits completed in 2022 (cattle, sheep, pigs)

Responsible Procurement

• Hilton Foods Supplier Social Code of Conduct
• Hilton Foods Agency Labour Standard
• Foods Connected platform for sharing commitments with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacts on upstream supply chains
• Rising sea levels
• Storm risk to Auckland site
• Drought impacting Australian facilities

Transition Risks

• Changing consumer purchasing preferences
• Carbon pricing
• Reliance on third parties for emissions targets

Opportunities

• Decarbonisation
• Carbon pricing incentivizing lower-carbon foods
• Meeting consumer demand for lower-footprint foods
• Demonstrated ESG credentials

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Global Compact

Certifications: ISO 14064-3

Third-party Assurance: GEP Environmental

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 2
• SDG 14
• SDG 15
• SDG 7
• SDG 12

Targets and initiatives align with various UN Sustainable Development Goals

Sustainable Products & Innovation

• Vegan bacon
• High-fibre products
• Products with recycled coastal plastics

Awards & Recognition

• APCO Annual Award 2022 for Highest Performing New Member
• Compassion in World Farming Innovation Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Animal Welfare
• Human Rights
• Food Waste Reduction
• Packaging Sustainability
• Workforce Diversity & Inclusion

Environmental Achievements

• 14% reduction in FY 2023 equivalent Scope 1 and 2 emissions since 2020
• 42% reduction in food waste since 2020
• 1,971 tonnes of plastic removed from packaging
• 70% of packaging is now recyclable
• ISO 50001 accreditation for energy management system across 10 sites

Social Achievements

• 78% high colleague engagement score in 2023 employee engagement survey
• Enhanced family leave policy in the UK (18 weeks full pay maternity leave, 3 weeks full pay paternity leave)
• Partnership with Slave-Free Alliance to protect human rights
• Supported various research projects on sustainable agriculture and fisheries

Governance Achievements

• More ambitious Science-Based Targets validated in March 2024, aligned with 1.5°C pathway
• Established a Global Wellbeing Framework
• 36% of leadership roles now held by women
• New Agency Labour Standard introduced to ensure competency of labour providers

Climate Goals & Targets

Environmental Challenges

• Macroeconomic and geopolitical environment impacting supply chains and consumer spending
• Dependence on a small number of key customers
• Reliance on key personnel
• Maintaining a flexible global food supply base
• Contamination within the supply chain
• Climate change risks (physical and transition)
• Cybersecurity threats

Mitigation Strategies

• Diversified business model across proteins and technology-led supply chain partnerships
• Widening customer base (e.g., Walmart Canada partnership)
• Succession planning and talent pipeline development
• Flexible global and local food supply base, supplier audits
• Stringent food safety standards and traceability
• Business continuity plans
• Robust IT control framework and cybersecurity program

Supply Chain Management

Responsible Procurement

• Supplier Social Responsibility Code of Conduct
• Foods Connected platform for supply chain transparency
• SMETA audits for high-risk suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Rising sea levels
• Storms
• Drought

Transition Risks

• Changing consumer preferences
• Carbon pricing
• Reliance on third parties for emissions reductions

Opportunities

• Decarbonisation of operations
• Expansion of supply chain systems and automation
• Meeting consumer demand for lower-emission foods
• Enhanced ESG credentials

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 50001, MSC

Third-party Assurance: GEP Environmental (Limited Assurance)

UN Sustainable Development Goals

• SDG 2
• SDG 5
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 15

Initiatives contribute to these goals through various programs and targets outlined in the Sustainable Protein Plan.

Sustainable Products & Innovation

• Flow wrap mince packaging
• Ready-to-cook meals
• Plant-based products

Awards & Recognition

• A- rating from CDP for Climate
• Supplier of the Year (Food) award

Environmental Metrics

ESG Focus Areas

• Greenhouse gases
• Deforestation
• Biodiversity
• Animal health & welfare
• Human rights
• Social well-being
• Food waste
• Packaging circularity and plastic reduction
• Product safety, quality, and integrity

Environmental Achievements

• 38% reduction in store waste over the past five years by extending product shelf life
• 41% reduction in plastic use from 2017 to 2023 (surpassing the 25% target by 2025)
• 70% reduction in packaging weight for minced meat by introducing flow pack technology
• Introduction of low-emission alternatives by replacing part of the beef in recipes
• CO2 emission labelling on pork products

Social Achievements

• Developed a comprehensive training framework for employees (including mandatory modules and additional courses)
• Implemented the "Grow Together" initiative to improve organizational culture
• Partnership with 'Open Up' platform for employee well-being
• Pursuing SMETA certification for ethical business practices at all suppliers
• Improved animal welfare standards for pigs (Beter Leven level 1)

Governance Achievements

• Embedded sustainability governance within the overall Hilton Foods governance structure
• Established a site-specific strategy with KPIs reported quarterly
• Annual review and update of the due diligence process

Climate Goals & Targets

Environmental Challenges

• High greenhouse gas emissions from the supply chain (particularly at the farm level)
• Deforestation linked to beef production
• Biodiversity loss
• Plastic pollution from packaging
• Animal health and welfare concerns
• Human rights and social well-being issues in the supply chain
• Food waste across the value chain

Mitigation Strategies

• Implementing the Sustainable Protein Plan 2025
• Beef replacement in recipes with low-emission alternatives
• Selecting the most sustainable supply chains
• On-farm CO2 reduction initiatives (e.g., Better for Pig, Nature, and Farmer program)
• Protein transition to reduce meat consumption
• Deforestation-free soy commitment (using RTS credits and aiming for segregated sources)
• Improved packaging (reduced weight, increased recycled content, recyclability)
• Animal welfare standards and audits
• Supplier Social Code of Conduct and SMETA audits
• Employee training and well-being programs
• Internal and external grievance mechanisms

Supply Chain Management

Supplier Audits: SMETA audits for suppliers, audits of abattoirs (every two years), planned audits for cattle collection places

Responsible Procurement

• Hilton Foods Animal Welfare Supplier Standard
• Supplier Social Code of Conduct with Compliance Requirements
• Foods Connected platform for communication of company policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OECD Guidelines

Certifications: FSSC 22.000, IFS PIA, Beter Leven, SKAL, RSPO, ISO 50001

Sustainable Products & Innovation

• Low-emission meat alternatives
• Products with extended shelf life