Climate Change Data

Vion Holding N.V.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:127,200 tCO2e (Scope 1+2)

ESG Focus Areas

  • Animal welfare
  • Food safety
  • Climate
  • Employment and working conditions
  • Biodiversity and deforestation
  • Traceability and product integrity

Environmental Achievements

  • Reduced absolute scope 1 and 2 CO2e emissions compared to 2021
  • Reduced water consumption by 3%
  • Reduced gas consumption through heat recovery system in Crailsheim, Germany
  • Installed solar panels at various locations, generating renewable energy
  • Replaced EURO 5 diesel trucks with EURO 6 compliant alternatives to lower nitrogen emissions
  • Implemented new condenser tower technology to improve cooling systems and reduce water consumption by 95%

Social Achievements

  • Launched Change That Matters program to improve performance and accelerate building sustainable chains
  • Increased the proportion of Vion employees (reducing third-party workers)
  • Improved housing conditions for third-party employees in Germany
  • Offered language and culture courses to integrate foreign employees
  • Reduced employee turnover in Germany compared to 2021
  • Developed a fully automatic measuring system for pig tails to improve animal welfare monitoring

Governance Achievements

  • Implemented IFS Product Integrity Assessment (IFS-PIA) at various production sites
  • Established a central energy team to focus on energy saving measures
  • Developed a new standard for process and product-related consumer marketing claims (IFS-PIA)
  • Improved data infrastructure by connecting more farmers and supply chain partners to deliver required data

Climate Goals & Targets

Long-term Goals:
  • Become a net-zero-emission company by 2045
Medium-term Goals:
  • Reduce scope 1, 2, and 3 emissions by at least 42% (non-FLAG) and 30.3% (scope 3 FLAG) by 2030
  • Achieve 100% green electricity by 2030
  • Achieve 50% of meat sold (measured by sold value) certified with respect to the control of animal welfare in the supply chain by 2030
  • Achieve 100% recyclable plastic packaging by 2030
Short-term Goals:
  • Reduce energy consumption by at least 2% in 2023
  • Achieve 99.9% proper stunning at the first attempt for animals in 2023
  • Achieve 90% compliance with internal microbiological standards for product hygiene in 2023
  • Achieve 88% of sales volume originating from plants certified according to a specific product integrity standard in 2023
  • Reduce absentee rate to 6.5% in the Netherlands, 5.0% in Germany, and 4.0% in Belgium in 2023

Environmental Challenges

  • Rising wages and labour costs
  • Employee shortages
  • Volatile pricing and supply chain problems
  • Limits on pork exports due to African Swine Fever
  • Scarcity of raw materials
  • Energy crisis and high inflation
  • Declining herd sizes in home markets
  • High employee turnover, especially in Germany
  • Difficulties in attracting sufficient workers
  • Need for greater transparency in the supply chain
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented Change That Matters program
  • Increased direct employment of former flex workers
  • Improved housing and commuting conditions for employees
  • Offered training and integration programs for employees
  • Developed and implemented new technologies for data management and supply chain transparency
  • Improved pricing and contracting models to support a fair distribution of value
  • Developed demand-driven chains to ensure fair prices for all supply chain partners

Supply Chain Management

Responsible Procurement
  • Use of RTRS certified soy
  • Implementation of Good Agricultural Practice (GAP) schemes
  • Collaboration with suppliers to reduce carbon footprint

Climate-Related Risks & Opportunities

Physical Risks
  • Water shortages
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and processes
  • Investment in renewable energy sources

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 50001 (Germany), IFS Food, BRC, GlobalGAP, IKB, QS, Skal, Beter Leven Keurmerk, Für mehr Tierschutz, IFS PIA

UN Sustainable Development Goals

  • Goal 2
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 12
  • Goal 13
  • Goal 15

Vion's strategy and activities relate to several SDGs, including zero hunger, clean water and sanitation, affordable and clean energy, decent work and economic growth, responsible consumption and production, climate action, and life on land.

Sustainable Products & Innovation

  • Plant-based meat alternatives
  • Low-fat smoked sausage
  • Nitrite-free bacon

Awards & Recognition

  • Lean & Green Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:119,200 tCO2e (2023)
Scope 1 Emissions:67,900 tCO2e (2023)
Scope 2 Emissions:51,300 tCO2e (2023)
Scope 3 Emissions:11,762,863 tCO2e (2023)
Renewable Energy Share:20% (2023)
Total Energy Consumption:1,581,000 GJ (2023)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate
  • Biodiversity and deforestation
  • Animal welfare
  • Employment and working conditions
  • Food safety
  • Traceability and product integrity
  • Fair pricing
  • Local communities
  • Water resources
  • Pollution
  • Resource use and waste

Environmental Achievements

  • Successfully obtained approval for scope 1, 2, and 3 emissions targets in line with limiting global warming to 1.5°C.
  • Connected all Good Farming Star farmers to data infrastructure to calculate carbon footprint at farm level.
  • Decreased energy consumption by 8 GWh per year through energy projects.

Social Achievements

  • Successfully renegotiated a collective labour agreement in Germany.
  • Implemented a safety culture ladder across all locations.
  • Expanded De Groene Weg organic supply chain to include beef and lamb.

Governance Achievements

  • Substantial progress in enhancing animal welfare, including modifications to lairage and driveway at Tilburg plant.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve net zero emissions across the supply chain by 2045 (ultimately 2050).
  • Have all soy from risk areas certified with at least a segregation chain of custody by 2025.
Short-term Goals:
  • Reduce absolute scope 1 and 2 GHG emissions by 42% by 2030 (vs. 2021 baseline).
  • Reduce absolute scope 3 GHG emissions from purchased goods and services by 2030.
  • Achieve 90% compliance with Vion internal microbiological standards for product hygiene by 2024.
  • Increase sales of certified animal welfare products by 50% by 2030.
  • Halt all pigtail docking by the end of 2030.

Environmental Challenges

  • Shrinking national herd sizes.
  • Inflation and high raw material costs.
  • Declining meat consumption.
  • Changes in consumer behaviour.
  • Export restrictions to Asian markets.
  • Intense competition from non-EU markets.
  • Political pressures on the agricultural sector.
Mitigation Strategies
  • Exit from the German market and divestment of German assets.
  • Increased focus on sourcing and production in the Benelux region.
  • Implementation of the 'Stronger together to provide Food that Matters' strategy.
  • Company-wide transformation programme aiming for €150 million in improvements by 2025.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • RTRS certified soy
  • Supplier code of conduct
  • IFS PIA assessment

Climate-Related Risks & Opportunities

Physical Risks
  • Water shortages
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Renewable energy sources

Reporting Standards

Frameworks Used: GRI, SBTi, CSRD

Certifications: ISO 9001, ISO 50001, IFS, BRC, Beter Leven Keurmerk, Skal

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • 2
  • 6
  • 7
  • 8
  • 12
  • 13
  • 15

Vion's initiatives contribute to these SDGs through various policies and activities.

Sustainable Products & Innovation

  • Plant-based meat alternatives (ME-AT)
  • Robusto pork
  • Good Farming Star pork
  • De Groene Weg organic meat

Awards & Recognition

  • Anuga Taste Innovation Show award for ME-AT product