Climate Change Data

Alltech

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:109,247 MTCO2e (Scope 1 & 2, 2019)
Scope 1 Emissions:109,247 MTCO2e (2019)
Scope 2 Emissions:49,887 MTCO2e (2019)
Scope 3 Emissions:being developed
Renewable Energy Share:46% (Serdan facility)

ESG Focus Areas

  • Climate Change
  • Animal Welfare
  • Sustainable Agriculture
  • Human Rights
  • Community Engagement
  • Talent Retention
  • Scientific Innovation

Environmental Achievements

  • Reduced energy footprint at Serdan, Mexico facility by 22% and CO2e emissions by 650 tons/year through solar energy and CNG conversion.
  • Reduced carbon footprint in egg production by 3.76% through Mycosorb use.
  • Reduced carbon footprint in beef production through Optigen® use (54 grams of CO2e per kilogram of milk produced).
  • Reduced carbon footprint of feed through Feeds EA™.
  • Reduced ammonia emissions in pig and poultry production through De-Odorase®.
  • Reduced nitrogen runoff through Optigen® use.
  • Improved nitrogen use efficiency by 4% through Optigen®.
  • Reduced mineral pollution through Total Replacement Technology™ (TRT).
  • 100% of Alltech Coppens fishmeal and krill meal certified or produced from trimmings in 2020.
  • Alltech Coppens lowered FIFO factor to 0.10.

Social Achievements

  • Launched Iowa Derecho Devastation Relief Fund to support farmers impacted by extreme weather.
  • Supported young agricultural communications leaders.
  • Celebrated Make a Difference Day with various social and environmental initiatives.
  • Received Mexican Center for Philanthropy Award for Socially Responsible Company.
  • Partnered with AgriBriefing for Women in Food & Ag Survey.
  • Launched Alltech Wellness Portal with resources for employee well-being.
  • Introduced a Code of Conduct and Speak Up! Reporting System.
  • Created a Human Rights Policy.
  • Alltech Sustainable Haiti Project supported three grade schools.

Governance Achievements

  • Introduced a Code of Conduct and Speak Up! Reporting System.
  • Created a Human Rights Policy.
  • Became a signatory to the United Nations Global Compact.

Climate Goals & Targets

Long-term Goals:
  • Zero CO2 emissions throughout the product life cycle by 2050 (Alltech Coppens)

Environmental Challenges

  • Climate change threatening agriculture's ability to feed the world.
  • Mycotoxin contamination in animal feed.
  • Excessive nitrogen in water sources.
  • Government restrictions on zinc oxide use in piglet feed.
  • Increased mycotoxin risk in fish diets due to sustainable plant-based ingredients.
  • COVID-19 pandemic impacting operations and communities.
Mitigation Strategies
  • Developed nutritional solutions to reduce agriculture's carbon footprint.
  • Implemented Alltech® Mycotoxin Management program, including mycotoxin testing and Mycosorb.
  • Used Optigen® to reduce manure nitrogen excretion.
  • Developed Alltech® Gut Health program to reduce antimicrobial resistance.
  • Partnered with Ocean University China to study mycotoxins in aquaculture.
  • Established a COVID-19 Resource Portal and Task Force.

Supply Chain Management

Responsible Procurement
  • Sustainable sourcing of soy products, no palm oil, Supplier code of conduct (in development)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events

Reporting Standards

Frameworks Used: UN Global Compact, Science Based Targets initiative

UN Sustainable Development Goals

  • SDG 2 (Zero Hunger)
  • SDG 3 (Good Health and Well-being)
  • SDG 13 (Climate Action)
  • SDG 15 (Life on Land)

Alltech's products and services aim to improve animal and plant health, leading to increased food production and reduced environmental impact.

Sustainable Products & Innovation

  • Yea-Sacc®
  • Optigen®
  • Mycosorb
  • Alltech® Enzyme Management
  • Alltech® Mineral Management
  • Allzyme® SSF
  • Allzyme® Vegpro
  • De-Odorase®
  • Actigen®

Awards & Recognition

  • Mexican Center for Philanthropy Award (CEMEFI)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,564,19 MT CO2e (Scope 1 & 2) + 1,498,107 MT CO2e (Scope 3)
Scope 1 Emissions:108,894 MT CO2e
Scope 2 Emissions:47,525 MT CO2e
Scope 3 Emissions:1,498,107 MT CO2e
Water Consumption:1,183,602 m3 (2022 baseline)

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Circular Economy
  • Workforce Diversity
  • Community Investment
  • Responsible Sourcing
  • Human Rights
  • Anti-corruption

Environmental Achievements

  • Reduced CO2e emissions by 7,600 metric tons through efficiency projects.
  • Alltech Serdán reduced CO2e by 650 tons through photovoltaic system and CNG use.
  • Sustainable packaging changes implemented at various facilities, resulting in significant paper and plastic reduction.
  • Alltech Coppens achieved 100% recyclable packaging.
  • Alltech Europe reduced packaging burden from 2,300 grams per pallet to 500 grams per pallet.
  • Completed 7 product LCAs and plans to complete 40 by end of 2023.

Social Achievements

  • 52% women in the newest class of Alltech’s Mini-MBA program.
  • Supported community initiatives through volunteer hours and donations.
  • Partnered with organizations to advance women in agriculture.
  • Supported educational initiatives globally.

Governance Achievements

  • Reaccredited by the Pet Sustainability Coalition.
  • Implemented policies aligning business processes with sustainability goals.
  • Completed compliance training for team members.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero GHG emissions by 2050.
Medium-term Goals:
  • Achieve 42% reduction in Scope 1 and 2 GHG emissions by 2030.
  • Achieve 25% reduction in Scope 3 GHG emissions by 2030.
  • Conduct three on-site inspections of high-risk suppliers by 2025.
  • Ensure 90% of high-risk suppliers are certified in sustainability by 2030.
  • Achieve CO2 neutrality at research center by 2025.
  • Achieve zero CO2 emissions at German production facility by 2030.
Short-term Goals:
  • Develop robust health and safety training plan and tracking methodology by end of 2024.
  • Conduct environmental risk assessments on 100% of manufacturing facilities by 2024.
  • Complete 40 product LCAs by end of 2023.
  • Define principles and scope of global water efficiency and recycling program by end of 2023.
  • Develop comprehensive global water efficiency and recycling program by 2025.
  • Develop global waste and pollution prevention program by 2025.

Environmental Challenges

  • Reducing GHG emissions across Scopes 1, 2, and 3.
  • Supply chain disruptions.
  • Mycotoxin contamination in feed ingredients.
  • Antimicrobial resistance.
Mitigation Strategies
  • Developed an emissions reduction roadmap with 2030 targets (Scope 1 & 2: 42%, Scope 3: 25%).
  • Implemented centralized logistics system and partnered with C.H. Robinson for optimized shipping.
  • Developed Alltech Supplier Sustainability Questionnaire.
  • Implemented Alltech® Mycotoxin Management program.
  • Developed Alltech® Gut Health Management platform to reduce antimicrobial resistance.

Supply Chain Management

Supplier Audits: Alltech Supplier Sustainability Questionnaire issued to suppliers exceeding $250,000 in goods/services in 2022 (21% completed at time of report).

Responsible Procurement
  • Business Partner Code of Conduct
  • Supplier Sustainability Questionnaire
  • Training for procurement team on sustainable procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and processes
  • Carbon sequestration

Reporting Standards

Frameworks Used: UN Global Compact, UN Sustainable Development Goals, GHG Protocol, PAS 2050, ISO 14067, LEAP, PEFCR

Certifications: ISO 14064, ISO 14001, ISO 9001, ISO 22000, FCI, FAMI QS, AFIA Safe Feed/Safe Food, HACCP, AIC FEMAS, ACS-CFM (target)

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

  • SDG 2: Zero Hunger
  • SDG 3: Good Health and Well-being
  • SDG 4: Quality Education
  • SDG 5: Gender Equality
  • SDG 8: Decent Work and Economic Growth
  • SDG 13: Climate Action
  • SDG 14: Life Below Water
  • SDG 15: Life on Land
  • SDG 17: Partnerships for the Goals

Alltech's initiatives contribute to these goals through sustainable food production, improved animal and human health, educational programs, gender equality initiatives, economic growth in communities, climate action, protection of aquatic life, land stewardship, and global collaborations.

Sustainable Products & Innovation

  • Acutia supplements
  • Allzyme® SSF
  • De-Odorase®
  • Bee-Sacc™

Awards & Recognition

  • Paraná Climate Seal “A” certification (Alltech São Pedro)
  • ESR certification (Alltech Serdán)

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:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Sustainability
  • Animal Welfare
  • Feed Efficiency
  • Disease Management

Environmental Achievements

  • Water pollution reduction methods are most widely being implemented.
  • Efforts to improve feed efficiency, create renewable energy, reduce antibiotic usage/combat antimicrobial resistance, produce food more efficiently and improve animal welfare.

Social Achievements

  • Improved control efforts, such as better tools for biosecurity and traceability, vaccines and advanced genetic technologies, are decreasing disease risk.
  • Increased demand for locally grown seafood and sustainability in aquaculture.

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • High raw materials prices, low returns for producers, animal diseases.
  • Labor costs, policies and standards, geopolitical events (Europe).
  • Geopolitical events and supply chain disruptions (Latin America).
  • Labor costs (North America).
  • High interest rates (Oceania).
Mitigation Strategies
  • Improved control efforts, such as better tools for biosecurity and traceability, vaccines and advanced genetic technologies.
  • Efforts to improve feed efficiency, create renewable energy, reduce antibiotic usage/combat antimicrobial resistance, produce food more efficiently and improve animal welfare.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts, floods, frosts, heat waves, increased pests
Transition Risks
  • Stricter environmental policies
Opportunities
  • Methane reduction technologies, regenerative agriculture

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed