Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon Footprint
• Water Resources
• Animal Welfare
• Health and Safety at Work
• Quality of Work Life
• Professional Development and Inclusion
• Food Safety
• Better Nutrition

Environmental Achievements

• Reduced CO2 emissions to 0.53 t of CO2 per tonne produced (target for 2025: -10%)
• Reduced water consumption to 8.63 m3 of water consumed per tonne produced (target for 2025: -5%)
• Implemented a thermal solar energy plant at the Verdun site to reduce gas consumption and CO2 emissions by approximately 2,000 tonnes per year.
• Conversion of sites from heavy fuel oil to natural gas (to be complete in 2020).

Social Achievements

• Launched Job Safety Visits (JSV) program to improve workplace safety and foster dialogue.
• Implemented Lacta’Cap program to support employees with disabilities, increasing the disabled worker recognition rate from 3.5% to 5.6% between 2010 and 2018.
• Developed a Quality of Work Life (QWL) action plan to improve employee satisfaction.
• Increased the number of internal training instructors to 56 (target for 2022: 60).

Governance Achievements

• Formalized CSR approach including economic, social, environmental, and societal aspects.
• Adherence to the UN's 17 Sustainable Development Goals (SDGs).
• Participation in the Sedex program for responsible sourcing.

Climate Goals & Targets

Environmental Challenges

• High energy requirements for drying activity contributing to carbon footprint.
• Water consumption during cleaning and processing.
• Maintaining high food safety standards.
• Ensuring animal welfare throughout the supply chain.

Mitigation Strategies

• Investment in alternative energies (solar thermal, natural gas).
• Implementation of CIP (Clean in Place) equipment for water recycling.
• Continuous improvement programs and regular monitoring of water consumption and waste.
• Collaboration with farmers to improve animal welfare practices (CAP sur l’Avenir guidelines).

Supply Chain Management

Responsible Procurement

• Sedex program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: FSSC 22000

UN Sustainable Development Goals

• 2
• 7
• 8
• 12
• 15

Sustainable Products & Innovation

• Flowhey®

Environmental Metrics

ESG Focus Areas

• Preservation of the environment
• Product quality
• Employee well-being

Environmental Achievements

• Reduced water consumption by -5%
• Reduced scope 1 greenhouse gas emissions by -10%

Social Achievements

• Launched managerial survey to measure employee satisfaction in terms of health and safety, quality of life at work, and skills development
• Created the Lactalis Ingredients Academy with a network of in-house instructors

Governance Achievements

• Implemented FSSC 22000 standard for food safety

Climate Goals & Targets

Environmental Challenges

• Reducing indirect emissions (scope 3) from farmer and supplier activities
• Large number of milk producers (13,000 in France) challenging the ability to move forward together according to common environmental standards
• Energy-consuming aspect of concentrating and drying milk
• Industrial activity generating waste (greenhouse gases, wastewater, organic matter, etc.)

Mitigation Strategies

• Developed roadmap to reduce greenhouse gas emissions (scopes 1 & 2)
• Committed to the Science Based Targets initiative (SBTi)
• Implemented ISO 14001 international environmental standard
• Implemented industrial initiatives to reduce emissions (scopes 1 & 2), including improving energy efficiency, switching to renewable energies, and monitoring innovation
• Initiated dialogue with partners to reduce indirect emissions
• Used Valorex Eco-Sens solution to estimate methane produced during animal digestion
• Used Cool Farm Tool to measure carbon footprint of farms
• Replaced 100% of palm oil used for filled milk powders with RSPO certified palm oil
• Three energy transition projects (Société Laitière de Retiers, Villarrobledo, Walhorn)

Supply Chain Management

Responsible Procurement

• Participation in Sedex

Climate-Related Risks & Opportunities

Physical Risks

• Higher temperatures, drought, violent storms

Reporting Standards

Frameworks Used: GRI, GHG Protocol

Certifications: ISO 14001, FSSC 22000, Sedex

Sustainable Products & Innovation

• Pronativ® Native Whey Protein
• Pronativ® Native Micellar Casein

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Resource Management
• Animal Welfare
• Food Safety
• Nutrition
• Health and Safety
• Employee Development
• Employee Engagement

Environmental Achievements

• Reduced greenhouse gas emissions (scopes 1 & 2) by 10.6% vs 2022
• Commissioned the largest solar thermal power plant in Europe supplying an industrial site at Verdun in 2022
• New evaporator at Vimoutiers reduced CO2 by 600 tons and water withdrawal by 9,000 m3
• 100% of Lactalis Ingredients Europe factories are ISO 14001 certified
• Reduced water consumption intensity to 10.6 m3 per ton produced in 2023

Social Achievements

• Halved the number of workplace injuries in two years
• 100% of dairy technicians trained in animal welfare best practices
• Launched a new lactose range for the pharmaceuticals market
• Launched a new leadership model built on 4 priorities: Care, Share, Dare & Inspire
• Engagement rate of 65% and well-being at work rate of 70% in 2023

Governance Achievements

• Defined and launched Food Quality and Safety strategy "Act for Quality, because we care" in 2022
• Implemented a new governance structure for health and safety

Climate Goals & Targets

Environmental Challenges

• High inflation in energy prices (130% increase between 2021 and 2023), maintenance costs (43% increase), and staff costs (24% increase)
• Decreased volume of whey treated (10% decrease) due to competition from other businesses
• Extremely dry conditions in certain regions in 2022 requiring reduction or temporary halt of water-intensive activities
• Concerns about energy source availability due to the conflict in Ukraine
• Decreased milk collection in France and the European Union in 2023
• Falling global demand for dairy ingredients
• Staff shortages and recruitment difficulties

Mitigation Strategies

• Exploring other valorization possibilities due to high energy costs
• Accelerating the search for short and long-term technical solutions and processes to reduce water consumption, recycle, and reuse water
• Adhering to roadmap action plan, launching projects such as the installation of a biomass boiler in Mayenne
• Continuing feasibility studies for other projects (SRF boiler at Retiers, biomass boilers at Verdun and Rouvroy, water reuse and reduction at Retiers, exploring ways to recover value from ingredients other than through drying)
• Exploring jointly financed projects with partners to accelerate decarbonization
• Implementing measures to enhance company attractiveness and promote well-being at work
• Implementing a new Lactalis leadership model
• Enhancing employee expertise through digitalization of training
• Implementing health and safety action plan by reinforcing knowledge of Job Safety Visits (JSV) and implementing training courses on Occupational Risk Assessment (ORA)

Supply Chain Management

Responsible Procurement

• Collaboration with dairy farmers to promote high-quality, environmentally-friendly production methods
• Contributing to supplier business development through international presence and exploring partnerships that foster innovation
• Using Sedex platform for sourcing data sharing

Climate-Related Risks & Opportunities

Physical Risks

• Extremely dry conditions

Transition Risks

• High energy prices
• Decreased milk collection

Opportunities

• Development of energy-efficient products and processes
• Renewable energy projects

Reporting Standards

Frameworks Used: GRI, SBTi

Certifications: ISO 14001, FSSC 22000

Sustainable Products & Innovation

• New lactose range for pharmaceuticals