Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate
• Water
• Waste
• People
• Communities
• Ethical Business Conduct

Environmental Achievements

• Developed new graduated targets for sustainability areas
• Established a strong governance structure to coordinate sustainability strategy
• Conducted a materiality assessment, identifying six priority areas
• Submitted inaugural CDP Climate Change response (C rating)
• Implemented TCFD recommendations
• Commenced lifecycle analysis process
• CO2 emissions decreased by 4% y/y on an absolute basis and 6% y/y on an intensity basis
• Energy consumption decreased by 2% y/y on an absolute basis and by 5% y/y on an intensity basis

Social Achievements

• Launched Purpose and Values, with workshops for 90 leaders
• Continued COVID-19 safety measures, maintaining production at all sites
• Maintained low employee turnover
• 85% global workforce participation in employee engagement survey
• 59% of management and professional roles filled by internal lateral moves and promotion
• 7 apprentices trained, 2 apprenticeships completed, 11 former apprentices still employed

Governance Achievements

• Developed Board and management structures for sustainability oversight
• Sustainability regularly discussed at Board meetings
• Appointed a full-time Group Sustainability Manager
• Undertook internal Sustainability Roadshow
• Biannual internal workforce communication on key sustainability focus areas

Climate Goals & Targets

Environmental Challenges

• Nascent customer demand for lower-carbon casings (porcine, poultry, plant-based)
• Limitations on using recycled materials in food contact packaging
• COVID-19 impacts on supplier audits and face-to-face activities
• Waste issues resulting in high base in 2020

Mitigation Strategies

• Collaboration with customers to meet needs and develop consumer market
• Investigation of opportunities to reuse water after filtration and chemical treatment
• Focus on clean waste separation, reducing waste to landfill
• Tightened supplier audit questionnaire and standards, prioritizing high-risk suppliers

Supply Chain Management

Supplier Audits: 40 audits in 2021

Responsible Procurement

• Clear specifications for supplied products
• Supplier audit and assessment process considering environmental policies, EMS, third-party certifications, GHG, CO2, water use, resource utilization, waste and pollution targets and performance, social issues (child/forced labor, equal opportunities, non-discrimination, freedom of association, labor practices, health and safety standards)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of lower-carbon casings (porcine, poultry, plant-based)

Reporting Standards

Frameworks Used: TCFD, CDP, UN SDGs, SASB

Certifications: ISO 14001 (5 of 7 collagen production sites), ISO 9001 (all production sites), FSSC 22000 (all production sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Porcine casings in all formats, poultry casings in gel

Awards & Recognition

• Second best employer in the Czech Republic region (evaluated by PwC Saratoga methodology)

Environmental Metrics

ESG Focus Areas

• Climate
• Water
• Waste
• People
• Communities

Environmental Achievements

• Substantial absolute reduction in tonnes of operational waste of 73%
• Completed an initial Scope 3 carbon footprint analysis
• CDP Climate Change rating B, Water rating C and Supplier Engagement rating A-

Social Achievements

• Maintained zero fatality rate and positive trend in health & safety statistics
• Launched a global Employee Assistance Programme
• Revised recruitment procedures globally to promote equality, diversity and inclusivity

Governance Achievements

• MSCI ESG rating A and Sustainalytics rating 29.5, Medium Risk
• Submitted second CDP Climate Change response and first Water response
• Board has ultimate responsibility and approves all key sustainability issues

Climate Goals & Targets

Environmental Challenges

• Water scarcity at Bathurst (Australia) and Jilemnice (Czechia) sites
• Reliance on third parties for net-zero plans (Scope 3 emissions)
• Potential for higher costs due to carbon pricing or carbon tax

Mitigation Strategies

• Investigating opportunities to reuse water after filtration and chemical treatment
• Investigating drilling boreholes to source alternative water supply
• Developing company-wide water reduction opportunities through reuse and improved production efficiency
• Setting near-term emissions reduction targets for Scope 1 & 2 aligned to the Science Based Targets initiative (SBTi) Net-Zero Standard
• Developing lower carbon products

Supply Chain Management

Supplier Audits: 64 audits/year in 2022

Responsible Procurement

• Supplier audit and assessment process considering environmental policies, EMS, third-party certifications, social issues (child/forced labor, equal opportunities, etc.)
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Carbon pricing or carbon tax (own operations and value chain)

Opportunities

• Innovating low-carbon alternatives
• Water, energy, waste savings
• Green generation

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UN SDGs

Certifications: ISO 14001 (five of seven production sites), ISO 9001, FSSC 22000

Sustainable Products & Innovation

• Porcine casings in all formats, poultry in gel, plant-based gel

Environmental Metrics

ESG Focus Areas

• Climate
• Water
• Waste
• People
• Communities

Environmental Achievements

• Reduced absolute scope 1 and 2 carbon emissions by 15%
• Increased the percentage of renewable electricity to 22%
• Reduced absolute water consumption by 12%
• Substantially reduced absolute quantity of operational waste by 60%

Social Achievements

• Maintained zero-fatality rate and positive trend in health & safety statistics
• Provided Sustainability training across our Commercial Organisation
• Developed Guidance on Community Engagement
• Obtained EcoVadis – Silver as part of our parent company assessment

Governance Achievements

• Integrated our Sustainability ethos, policy, target approach and practices into the SARIA Food & Pharma Division

Climate Goals & Targets

Environmental Challenges

• Unstable energy costs causing fluctuations in the impact of carbon taxes
• Potential introduction of carbon taxes in the upstream value-chain increasing costs
• Water scarcity risks in Australia and Czechia
• Reliance on third parties for net-zero plans

Mitigation Strategies

• Net-zero ambition, near-term emissions reduction and renewable energy targets
• Multiple supply options globally and raw material efficiency projects
• Borehole investigation for alternative water supply in Bathurst
• Company-wide water reduction opportunities through re-use and improved production efficiency

Supply Chain Management

Supplier Audits: 87 audits in 2023

Responsible Procurement

• Supplier audit and assessment process considering environmental policies, EMS, third-party certifications, environmental impacts, social issues (child/forced labor, equal opportunities, etc.), and health and safety standards

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Carbon pricing or carbon tax (own operations and value chain)
• Reliance on third parties for net-zero plans

Opportunities

• Innovating low-carbon alternatives
• Water, energy, waste savings
• Green generation

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UN SDGs

Certifications: ISO 14001, ISO 9001, FSSC 22000, ISO 45001

Sustainable Products & Innovation

• Porcine casings in all formats, poultry in gel, plant-based gel