Better Planet
Goals
- Reduce our environmental footprint by 50% by 2025 (2014 baseline)
- Execute on our science-based targets (SBTs): 30% absolute reduction for Scope 1 & 2 emissions and 30% intensity reduction (per 1,000 kg of product produced) for Scope 3 emissions (2018 baseline)
- Reduce food waste arising from our operations by 50% by 2025 (2016 baseline)
- Execute on our sustainable packaging strategy and work with fellow Canada Plastics Pact signatories to collectively achieve clear and actionable packaging reduction targets by 2025
- Implement our current supplier code and broader sourcing strategy
- Continue utilizing intermodal transportation for >85.5% of our cross-country resupply
2020 Highlights
- Celebrated one year as the first major food company in the world to be carbon neutral
- Began developing our carbon reduction plans to achieve our SBTs approved by the Science Based Targets initiative
- We have reduced the intensity of our environmental footprint by: 25.9% for electricity; 19.5% for natural Gas; 21.6% for water (2014 baseline); 12.1% for solid waste (2015 baseline); and 30.9% for food loss waste (2016 baseline)
- Finalized our sustainable packaging strategy and became a founding signatory of Canada Plastics Pact
- Achieved 98% landfill diversion certification at our New Hamburg Hatchery in Ontario
- Intermodal transportation accounted for 88% of our cross-country resupply
We have an aggressive goal of reducing the intensity of our environmental footprint by 50% by 2025, , and approved SBTs to reduce our absolute Scope 1 and 2 emissions and the intensity of our Scope 3 emissions by 30% by 2030.
We operate within the framework of an environmental policy entitled “Our Environmental Sustainability Commitment” that has been approved by the Board of Directors’ Safety and Sustainability Committee and guides our day-to-day practices. The Company’s environmental program is monitored on a regular basis by the Committee, including compliance with regulatory requirements and the use of internal environmental specialists and independent, external environmental experts. The Company continues to invest in environmental infrastructure related to energy, water, waste and air emissions to ensure that environmental standards continue to be met or exceeded, while implementing procedures to reduce the environmental impact of operations.
Our responsibility for environmental sustainability goes well beyond our own operations; we must also advocate and share knowledge that elevates practices and regulations across the industry. We will actively engage with consumers, customers, non-governmental organizations and other stakeholders so that change can be based on sound data and science, and what society expects of us. As Maple Leaf Foods is a large food company, there are health, environmental and social issues that go beyond short-term profitability that management believes must shape its business if the Company is to realize a sustainable future. Increasingly, sound environmental sustainability practices are becoming a key component of maintaining a competitive advantage.
Reducing Our Environmental Footprint
Today’s food system includes everything involved in feeding people and animals, including all steps in the food supply chain, from growing and harvesting to processing, trading, marketing, distribution, consumption and disposal. A healthy food system is one with inclusive outcomes for healthy people and a healthy planet, and of course, healthy businesses. One of the greatest challenges for the food system is to meet the increasing global demand for food while dramatically decreasing the environmental footprint of food production, as agriculture accounts for approximately 23% of total greenhouse gas emissions*. Livestock is the world’s largest user of land resources, with pasture and land dedicated to the production of feed representing almost 70% of total agricultural land*. Agriculture also uses approximately one-third of the world’s fresh water.
We have big, bold goals to reduce our environmental footprint by 50% by 2025. Our bold intensity (per metric tonne of production) goals are driven by the passion of our people to reduce our impact on the environment and contribute to the sustainable growth of our business.
We have made significant progress in reducing our environmental footprint:
Total Energy Intensity
19.8% reduction
Electricity Intensity
25.9% reduction
Natural Gas Intensity
19.5% reduction
Water Intensity
21.6% reduction
Solid Waste Reduction Intensity
12.1% reduction
91.6% landfill diversion rate
Food Loss Waste Intensity Reduction
30.9% reduction
SBT Scope 1 & 2 Emissions Absolute Reduction
1.77% reduction (CO2e)
SBT Scope 3 Emissions Intensity Reduction
0.88% reduction (CO2e)
Note: Performance measured from 2014 baseline with the exception of solid waste, which is a 2015 baseline, food loss waste, which has a baseline of 2016, and SBTs (Scope 1, 2 and 3), which are a 2018 baseline.
2020 Performance Summary Tablei
A detailed summary of our energy, water, food waste and solid waste usage, as well as our greenhouse gas (GHG) emissions for 2020, can be found in our environmental footprint performance summary represented in the table below:
| Parameter |
2020 |
2019 |
2018 |
2017 |
2016 |
2015 |
2014 |
|---|---|---|---|---|---|---|---|
|
Total Energy (MWh)1 |
1,062,219 |
1,082,130 |
1,094,680 |
1,087,052 |
1,057,909 |
1,097,444 |
1,182,620 |
|
Direct Energy – Natural Gas (m3)2 |
60,275,214* |
62,697,908 |
63,579,417 |
61,208,054 |
58,813,276 |
61,407,746 |
66,703,826 |
|
Indirect Energy – Electricity (MWh)3 |
385,404* |
377,172 |
387,807 |
400,350 |
405,009 |
418,567 |
464,057 |
|
Water (m3)4 |
8,874,482* |
8,689,166 |
9,032,574 |
9,099,616 |
9,048,788 |
9,424,971 |
10,076,842 |
|
Food Loss Waste (MT)10 |
20,556 |
20,656 |
22,458 |
24,287 |
28,472 |
– |
– |
|
Solid Waste (MT)7 |
250,208 |
275,726 |
246,759 |
250,271 |
257,543 |
263,086 |
– |
|
Landfill Diversion Rate (%)8 |
91.64% |
92.38% |
91.17% |
92.97% |
92.01% |
91.54% |
– |
| Parameter |
2020 |
2019 |
2018 |
2017 |
2016 |
2015 |
2014 |
|---|---|---|---|---|---|---|---|
|
Total Energy (MWh)1 |
1.49 |
1.64 |
1.65 |
1.59 |
1.55 |
1.65 |
1.87 |
|
Direct Energy – Natural Gas (m3)2 |
84.76 |
95.04 |
95.85 |
89.58 |
86.36 |
92.29 |
105.32 |
|
Indirect Energy – Electricity (MWh)3 |
0.54 |
0.57 |
0.58 |
0.59 |
0.59 |
0.63 |
0.73 |
|
Water (m3)4 |
12.48 |
13.17 |
13.62 |
13.32 |
13.29 |
14.16 |
15.91 |
|
Food Loss Waste (MT)10 |
28.91 |
31.31 |
33.86 |
35.55 |
41.81 |
– |
– |
|
Solid Waste (MT)7 |
29.41 |
31.87 |
32.85 |
25.75 |
30.21 |
33.45 |
– |
|
Landfill Diversion Rate (%)8 |
– |
– |
– |
– |
– |
– |
– |
| Parameter |
50% x 2025 target |
Intensity reduction |
% Reduction |
Units |
|---|---|---|---|---|
|
Total Energy (MWh)1 |
0.93 |
0.37 |
19.8 |
MWh/1,000 kg |
|
Direct Energy – Natural Gas (m3)2 |
52.66 |
20.56 |
19.5 |
m3/1,000 kg |
|
Indirect Energy – Electricity (MWh)3 |
0.37 |
0.19 |
25.9 |
MWh/1,000 kg |
|
Water (m3)4 |
7.96 |
3.43 |
21.6 |
m3/1,000 kg |
|
Food Loss Waste (MT) |
20.90 |
12.90 |
30.9 |
MT/1,000 kg |
|
Solid Waste (MT) |
16.73 |
4.05 |
12.1 |
MT/1,000 kg |
|
Landfill Diversion Rate (%)8 |
– |
– |
– |
– |
| Parameter |
2020 |
2019 |
2018 |
|---|---|---|---|
|
Scope 1 & 2 CO2e (tonnes)5 |
333,087 |
332,269 |
339,048 |
|
Scope 1 CO2e (tonnes)5 |
302,413* |
303,199 |
310,556 |
|
Scope 2 CO2e (tonnes)5 |
30,674* |
29,070 |
28,528 |
| Parameter |
2020 |
2019 |
2018 |
|---|---|---|---|
|
Scope 1 & 2 CO2e (tonnes)5 |
0.22 |
0.24 |
0.24 |
|
Scope 1 CO2e (tonnes)5 |
0.20 |
0.22 |
0.22 |
|
Scope 2 CO2e (tonnes)5 |
0.02 |
0.02 |
0.02 |
| Parameter |
30% x 2030 target |
Absolute Reduction |
% Reduction |
Units |
|---|---|---|---|---|
|
Scope 1 & 2 CO2e (tonnes)5,6 |
101,725 |
5,997 |
1.77 |
CO2e (tonnes)5,6 |
|
Scope 1 CO2e (tonnes)5,6 |
93,167 |
8,143 |
2.62 |
CO2e (tonnes)5,6 |
|
Scope 2 CO2e (tonnes)5,6 |
8,558 |
-2,146 |
(7.52) |
CO2e (tonnes)5,6 |
| Parameter |
2020 |
2019 |
2018 |
|---|---|---|---|
|
Scope 3 CO2e (tonnes)5 |
1,526,145* |
1,488,143 |
1,463,325 |
| Parameter |
2020 |
2019 |
2018 |
|---|---|---|---|
|
Scope 3 CO2e (tonnes)5 |
1.01 |
1.07 |
1.02 |
| Parameter |
30% x 2030 target |
Absolute Reduction |
% Reduction |
Units |
|---|---|---|---|---|
|
Scope 3 CO2e (tonnes)5 |
0.31 |
0.01 |
0.88 |
CO2e (tonnes)5 |
i. Our performance is reported consistent with our report boundary. In 2020, we have reported on entities over which Maple Leaf Foods has operational control – our processing and manufacturing facilities, distribution facilities and offices (both leased and owned buildings); and farms, barns and feed mill operations (unless otherwise indicated). In 2020, we restated our GHG emissions back to our baseline year (2018) due to improved availability of data and applied the GHG Protocol’s updated emissions factors to our 2020 GHG emissions. We changed our solid waste and landfill diversion methodology and restated our solid waste performance and landfill diversion rate back to our baseline year (2015).
* This performance indicator is within the scope of the limited assurance report.
1. Consumption: Electricity, natural gas, water, solid waste and GHG emissions (Scope 1 & 2). Energy, water consumption, solid waste and GHG emissions reflect actual usage/emissions.
2. Direct energy: Direct energy represents the consumption of natural gas and is recorded on an as-billed basis for the calendar year.
3. Indirect energy: Indirect energy represents the consumption of purchased electricity and is recorded on an as-billed basis for the calendar year.
4. Water: Water consumption is recorded on an as-billed basis for the calendar year.
5. Greenhouse gas (GHG) emissions: GHG emissions are measured in units of tonnes of carbon dioxide equivalent (CO2e). Scope 1 sources include natural gas, propane, our corporate car business travel, Maple Leaf Foods-owned trucks and shunt trucks, animal emissions and manure management, renewable natural gas, and CO2 used in process and refrigerants. Scope 2 sources include electricity and green power. Scope 3 includes purchased goods and services, fuel-and-energy-related activities (not included in Scope 1 or 2), upstream transportation and distribution, waste generated in operations, business travel, employee commuting, upstream leased assets, downstream transportation and distribution, processing of sold products, and use of sold products. For our carbon neutral claim, we offset 100% of Scope 1 & 2 emissions and 5% of our Scope 3 emissions. Procurement of verified emissions reductions (VERs): 380,792 tCO2e and Renewable Energy Certificates (RECs): 43,436 MWh.
- Scope 1 emissions are calculated using activity data (e.g. fuel consumption data from meters, average annual production by various livestock types, purchased records from suppliers) multiplied by a calculated emission factor from the 2006 Intergovernmental Panel on Climate Change Guidelines for National Greenhouse Gas Inventories or applicable regulated default emission factors.
- Scope 2 emissions are calculated using current average U.S. Environmental Protection Agency’s Emissions & Generation Resource Integrated Database (eGRID) factors (for U.S. facilities) and Environment and Climate Change Canada’s National Inventory Report (NIR) factors (for Canadian facilities).
- Scope 3 emissions are calculated from the following activity data: feed, ingredients and packaging expenditures multiplied by emission intensity based on the 2007 Producer Price Model published by the Green Design Institute of Carnegie Mellon University; third-party contracted grower by prorating Maple Leaf Foods’ reported emissions in proportion to the relative production of Maple Leaf Foods and the third-party grower; lifecycle analysis by the Chicken Farmers of Canada; flight records and freight by leveraging data tracked by SAP and applied emission factors by Climate Leaders Greenhouse Gas Inventory Protocol Core Module Guidance; and fuel and energy usage by accounting for well-to-tank emissions associated with extraction, refining and transportation, transmission and distribution.
6. Location-based emissions according to the GHG Protocol Scope 2 Guidance. Scope 2 emissions calculated using the market-based method: 8,230 tCO2e.
7. Solid waste: Solid waste represents the amount of waste recycled and disposed at landfill (MT) on an as-billed basis for the calendar year. Waste intensity: Represents the amount of waste recycled and disposed at landfill (kg) per 1,000 kg of production. Solid waste performance is established by landfill diversion reports and invoices provided by our waste management vendors. 2015 is our baseline year for waste diversion. Note: In 2020, we were informed by our rendering vendor that a percentage of our rendering is sent to landfill. We are currently investigating and assessing its impact.
8. Landfill diversion rate (%): Represents the amount of waste diverted from our operations away from landfill. Landfill diversion rate: Total recycling divided by solid waste.
9. Intensity: Represents the individual performance measure per 1,000 kg of production (finished product). To avoid double counting, finished product does not include product volumes sold between Maple Leaf Foods business groups. Production: 711,100 metric tonnes of finished goods produced.
10. Food loss waste: Represents data collected through SAP, vendor invoices and diversion reports using the Food Loss and Waste Accounting and Reporting Standard. Data includes all food produced for North American consumption. 2016 is our baseline line year for food loss waste.
Environmental Footprint Performance Summary
Since 2014, we have been progressing toward our environmental footprint reduction targets. We have achieved steady reductions on all our environmental performance measures, resulting from third-party utility audits we implemented at each facility, and the development and implementation of environmental sustainability action plans that were created for each of our facilities.
During 2020, we had to pause the execution of some of our environmental footprint reduction initiatives due to COVID-19 but we were able to complete a few re-audits of our facilities to update their environmental sustainability action plans and work with local partners on conservation programs. For example, our partnership with Enbridge/Union Gas at our Heritage facility continues to yield significant results, including steam energy efficiency upgrade projects that resulted in approximately 1,330,173 m3 of natural gas savings, 5,206 m3 of water savings and 2,525 tCO2e reduction in GHG emissions. Despite COVID-19 impacts, we continued to make progress and achieved our 20% reduction by 2020 goals for electricity and water intensity! Our natural gas intensity also improved by 9.7% in 2020, bringing our total reduction to 19.5% from a 2014 baseline. We also achieved a company-wide landfill diversion rate of over 91%.
We also began measuring our solid waste by using diversion reports and invoices provided by our waste management vendors instead of using the findings from our annual solid waste audits. This change in methodology resulted in a reduction of only 12.1% in our solid waste intensity from our 2015 baseline compared to our previously stated performance. Our new process is a more accurate reflection of our performance and will provide us with greater visibility into how much work needs to be done to reach our goals and better identify areas for improvement. We are very proud of our New Hamburg Hatchery facility for achieving a 98% landfill diversion rate and the Company’s first third-party landfill diversion certification through GreenCircle Certified LLC.
While we achieved most of our 2020 interim reduction targets, we recognize that we need to significantly ramp up our efforts to achieve our 50% by 2025 goals. Since we are at the halfway point of reaching our goal, we will improve our approach by developing comprehensive reduction roadmaps to 2025 for all our environmental footprint measures to step-change our annual performance. We will also be implementing an energy coach pilot program at our highest impact facility. However, achieving our environmental footprint reduction goals is not going to happen by only focusing on energy efficiency projects. We understand that new technologies and innovation will be critical components for success and have therefore begun work on two transformational strategies. While not a new technology, we see anaerobic digestion as a scalable solution to reduce GHG emissions arising from our operations, while at the same time developing renewable bio-gas to replace current fossil fuel consumption. We are also investing in the emerging field of regenerative agriculture to reduce environmental impacts in our supply chain. We recently announced partnerships with Indigo Ag, and Nutrien, to reward grain farmers in our animal feed supply chain who adopt regenerative agriculture practices and increase soil carbon sequestration on their farms.
All our environmental reduction roadmaps and new strategies will closely align to our current GHG emissions decarbonization initiatives in order to achieve our SBTs. We are excited about these opportunities for continued environmental footprint reduction for our Company.
Environmental Management System
As part of our Health, Safety, Security and Environment (HSSE) program and in line with our Environmental Sustainability Commitment, Maple Leaf Foods has an environmental management system (EMS) in place at each of our facilities using the same methods as ISO 14001. Regulatory compliance is assessed at each of our operations, progress is tracked and action plans are created to continuously improve our performance.
We have developed several tools to assess compliance, create action plans and track progress. Each facility’s environmental designate reviews an Environmental Aspect Identification and Prioritization tool to gain a full understanding of the site-specific environmental risks. Twice annually our corporate environmental compliance lead reviews an environmental self-assessment and compliance scorecard with each site. These give each site an overall score and produce an action plan to improve their score.
The self-assessment is focused on the following seven key areas: Policy and Planning; Roles, Responsibilities and Training; Regulatory Awareness; Site Environmental Aspects; Spills and Emergency Response; Complaint Management; and Documentation and Record Keeping
The scorecard tracks regulatory compliance performance and is focused on the following four key areas: Regulatory Requirements; Environmental Incidents; Evaluation and Risk Assessment; and Continuous Improvement and Training
Our corporate environmental lead also completes an annual review of each site’s emissions to air, land and water to ensure the sites remain in compliance with regulations. In addition, each site performs an annual internal review, in which the site must verify compliance and knowledge of regulatory requirements by reviewing permits, approvals and licenses, and identify roles and responsibilities for the record in an audit-like setting. This robust EMS ensures that we are in compliance with all applicable laws and regulations.
Environmental Sustainability Action Plans
Our utility auditing and action plan development process has identified many common energy, water and waste reduction opportunities that we have classified as a priority due to their high return on investment and positive impact on reducing our environmental footprint. The chart here provides a breakdown of the types of opportunities that were identified as part of the utility audits conducted from 2015 to 2020, as well as several food loss waste audits since 2018.
An action plan tracker to measure how each plant is progressing in meeting reduction targets is also utilized and updated quarterly.
We are actively working on energy, water and solid waste projects that were prioritized using an effort–impact matrix. The key determinants used in this exercise included implementation of capital, timing and human resource requirements concerning effort. Savings generated, the number of utilities impacted and greenhouse gas reduction are the criteria used to score impact.
Our utility auditing and action plan development process has identified many common energy, water and waste reduction opportunities that we have classified as a priority due to their high return on investment and positive impact on reducing our environmental footprint. These include LED lighting retrofits, equipment upgrades, heat recovery projects, water reuse opportunities, organics diversion from landfill and other similar projects.
We are also continually investigating and piloting innovative initiatives such as battery storage technology, thermal heat recovery on our ammonia systems, geothermal heating and cooling, and water reuse opportunities at our plants.
Overall, our auditing and action plan program has improved the quality of our environmental data and enhanced our understanding of our performance, cost savings and footprint reduction opportunities.
| Electricity | 32% |
| Water | 31% |
| Natural Gas | 22% |
| Wastewater | 6% |
| FLW | 6% |
| CI/OES | 2% |
| Solid Waste | 1% |
Our Stories
Carbon and Energy
On November 7, 2020, Maple Leaf Foods celebrated our one year anniversary as the first major carbon neutral food company in the world. Our Company is carbon neutral by aggressively avoiding and reducing our greenhouse gas emissions and investing in high-impact environmental projects to neutralize our remaining and currently unavoidable emissions. We have neutralized all our Scope 1 & 2 emissions and a portion of our Scope 3 greenhouse gas emissions. The Scope 3 emissions in our offset program include supplier emissions arising from animal production and packaging equivalent with the product volumes of Maple Leaf brands that display our Carbon Zero logo.
In 2019, we were one of just three animal protein companies globally and the only food company in Canada to set science-based targets that are aligned with the goals of the Paris Agreement on Climate Change and approved by the Science Based Target initiative (SBTi). Importantly, science-based targets require that we reduce our emissions even as we grow.
We are on a mission to be the most sustainable protein company on earth. We recognize that creating nutrient-dense protein like ours takes resources, and today, we are proud to replenish the environment in equal measure.
What It Means to Be Carbon Neutral
Michael McCain, President and CEO, explains the importance of being the world’s first major carbon neutral food company.
Randy Huffman, Chief Food Safety and Sustainability Officer, explains what it means to be carbon neutral.
Curtis Frank, President and Chief Operating Officer, shares his sense of pride in working for a company that has achieved a bold goal like carbon neutrality.
A look at Maple Leaf Foods and its sustainability commitments that lead us to become the first major carbon neutral food company.
Carbon Inventory
Total Emission Sources
- SCOPE 1 – 16%
- SCOPE 2 – 2%
- SCOPE 3 – 82%
(C02 stunning and Refrigerant)
Manure
from fuel and energy
emissions
prepared meat, Fresh pork
and fresh poultry products
materials
(road, sea
and Rail)
Ingredients
for MLF
products
(Natural gas,
fuel oil
and Propane)
contracted grower
(Hog and Poultry)
production
In technical terms, emissions can be categorized into three different types:
Scope 1: All direct greenhouse gas (GHG) emissions under Maple Leaf Foods operational control
Scope 2: Indirect GHG emissions from consumption of purchased electricity, heat or steam
Scope 3: Indirect GHG emissions not covered in Scope 1 and 2 that occur throughout the supply chain
What Science-Based Targets Have We Set?
Maple Leaf Foods has pledged to reduce our absolute scope 1 and 2 greenhouse gas (GHG) emissions by 30% by 2030 from a 2018 base year. We produce these emissions directly in our operations and from the electricity we purchase.
We have also pledged to reduce scope 3 GHG emissions by 30% per tonne of product produced over the same period. These emissions are produced in our supply chain, including raw materials, feed and ingredients we purchase and consume, and emissions associated with packaging, plus distribution of our products.
Our Journey
Becoming carbon neutral is Maple Leaf Foods’ latest, bold step on its sustainability journey. Since 2015, we have advanced against our environmental footprint reduction target of 50% by 2025, one of the most aggressive intensity reduction targets in the food industry. We are achieving this by realizing efficiency gains of projects we have implemented across our network, investing in technology and rigorous monitoring.
To neutralize our remaining emissions, we are investing in high-quality, credible and verifiable projects that reduce greenhouse gas emissions to bring our net carbon footprint to zero.
We have come far on our sustainability journey and are committed to continue to lead in critical efforts to fight global warming and to protect the planet.
Maple Leaf Foods appoints Lynda Kuhn, a member of our Senior Leadership Team, to create a company-wide sustainability program.
Maple Leaf Foods embraces the message “you manage what you measure” and sets big, bold goals for the company in key sustainability areas including nutrition, animal care, our people and communities. We set the boldest intensity-based environmental goal in our industry: 50% environmental footprint reduction by 2025.
Maple Leaf Foods brings on board Tim Faveri, VP of Sustainability & Shared Value, to oversee our efforts to become a more efficient and environmentally friendly operator. We also retained an independent engineering firm to audit all our operations to identify improvements in energy, water and solid waste and create an action plan for each facility to reduce its footprint.
Maple Leaf Foods focuses on a multi-phase national program to convert all lighting at facilities to energy efficient LEDs. We also launched heat-recovery projects to capture excess heat generated by compressors, boilers and other equipment and use it to pre-heat water and send to other parts of facilities where more heat is needed. We also began to explore other opportunities like geothermal heating and cooling, solar energy, battery storage, and hybrid and electrical vehicle use.
Maple Leaf Foods completes phase 1 of our national lighting retrofit program and launches phase 2. We continued to focus on our utility usage by implementing a robust utility management system to monitor utility consumption and measure our environmental performance at each facility. This system houses all data which is analyzed to target further reduction strategies.
Maple Leaf Foods completes phase 2 of our national lighting retrofit program and begins to expand the efforts to barns and distribution facilities. We also continued our partnership with a local biodigestion company that accepts organic waste and turns it into renewable energy. We begin the development of a comprehensive carbon management strategy.
Maple Leaf Foods commences re-audits of our largest facilities to assess the impact of the projects we implemented since 2015 and identify additional opportunities to further reduce our environmental footprint. We begin developing a formal feasibility review of anaerobic biodigestion technology to capture methane at our facilities and from pig manure at our barns.
7 November 2019: Maple Leaf Foods is the first major food company in the world to be carbon neutral! We were able to achieve carbon neutrality by aggressively reducing our greenhouse gas (GHG) emissions, committing to Science-Based Targets for even further reductions and investing in environmental projects that offset remaining GHG emissions, bringing our net footprint to zero today.
2020 was a milestone year for Maple Leaf Foods. We celebrated one year as the first major carbon neutral company in the world. We became a founding member of the Canadian Plastics Pact (CPP) to work collectively with other companies, NGOs and public sector partners to tackle plastic waste and pollution. And together with CN and Celestica, we signed an open letter to call on Canadian companies to take meaningful climate action, protect the environment and help to ensure a sustainable, equitable and healthy future for all Canadians.
Support of Environmental Projects
Maple Leaf Foods is supporting 12 high-impact, environmental projects to neutralize our remaining, unavoidable emissions. These projects are located throughout Canada and the U.S., and many are near the locations where our facilities and barns operate.
This certificate of allocation details our investments in the Verified Emission Reduction projects. This certificate of allocation details our investments in Renewable Energy Credits.
Learn more about our projects by clicking on each of the boxes below.
Carbon Pricing
The internal “price on carbon” that we have established provides input to all our capital decisions. We have created a carbon calculator tool that factors the carbon cost into all capital expenditure requests and return on net assets calculations. This established price fluctuates with the average price the Company pays to secure Renewable Energy Credits and Verified Emissions Reductions offsets. The Company evaluates all existing and emerging federal and provincial carbon pricing and compliance programs and will participate if it sees value and minimal risk. The Company’s ambitious SBTs and the implementation of our comprehensive carbon management strategy reduces our exposure to regulation changes around carbon pricing and gives us a competitive advantage against companies that do not engage in emissions reduction activities.
Canada's First Sustainability-Linked Loan
In 2019, Maple Leaf Foods amended its Credit Facility to become part of the first Sustainability-Linked Loan in Canada – a partnership with nine global banks to encourage maintenance of carbon neutrality and reductions in greenhouse gas emissions, electricity, water and solid waste. The Sustainability-Linked Loan consists of a $1.3 billion unsecured committed revolving line of credit maturing April 30, 2024, and two unsecured committed term credit facilities for US$265.0 million and $350.0 million maturing April 30, 2024 and April 30, 2023, respectively. This Sustainability-Linked Loan is intended to meet the Company's funding requirements for capital investments. Under the terms of the Sustainability-Linked Loan, the Company can benefit from lower interest rates upon achievement of certain sustainability targets and carbon neutrality. This reduction will not materialize until at least 2021, and there is no penalty for not achieving the targets.
Reducing Our Freight Kilometres
We have been optimizing our logistics program since 2011 in an effort to reduce our greenhouse gas (GHG) emissions. All our work has resulted in Maple Leaf Foods eliminating over 8,550,943 km of truck transportation, resulting in a reduction of 9,176 tonnes of GHG emissions.
Optimizing our inbound and outbound logistics program has been one of our efforts to get our product from one point to another in an efficient manner while keeping in mind our environmental footprint.
Here’s how we optimized our logistics program:
Shipping full pallets in a single trip helped us reduce the overall number of trips and trucks on the road
Consolidation of orders
Adherence to shipping schedules
Our increased use of intermodal transport is also positively impacting our environmental footprint reduction. In 2020, our intermodal transportation increased to 88%, up from 82.9% in 2019. Since 2011, we have eliminated over 8,550,943 km of truck transportation, resulting in a reduction of 9,176 tonnes of GHG emissions.
Manure Management at Maple Leaf Foods
Pig manure contains valuable macro and micro nutrients that promote soil health. Many factors affect greenhouse gas (GHG) emissions from livestock manure, including temperature, oxygen level (aeration) and moisture.
The type of manure, for example coming from livestock, and how the manure is handled (i.e., piled or managed in anaerobic lagoons) and stored can also contribute to GHG emissions.
Good manure management is essential for minimizing GHG emissions caused by microbial activities during manure decomposition.
In 2020, Maple Leaf’s owned and leased hog barns recycled 1,413,267,186 litres of manure from storage lagoons by applying it to fields as fertilizer. One hundred per cent of the manure was applied with a site specific nutrient management plan developed by a certified agrologist.
In 2020, we applied over 1.4 billion litres of manure to fields as fertilizer.
The majority of Maple Leaf Foods pig farms are located in Manitoba, where we work with local farmers to recycle manure from the animals we raise. Pig manure contains valuable macro and micro nutrients that promote soil health, so we manage the manure in outdoor lagoons until we can deliver it to local farms for use as organic fertilizer.
Certified agrologists prepare a manure management plan for each of our farms, and registers them with the Province of Manitoba. Once the plan is approved, the manure is applied to the land of local farms based on what nutrients currently exist in the soil, what nutrients are in the manure and the nutrient requirements of the crop. It is only applied at predetermined rates and times of the year to ensure the nutrients are fully incorporated into the soil to prevent runoff.
Manure is valuable and we don’t want to waste it, but we know it must be applied at the right place, at the right time, in the right quantities. At Maple Leaf Foods, we are responsibly recycling manure and reducing greenhouse gas emissions. Using manure as fertilizer is nutrient recycling at its best!
The Province of Manitoba has a comprehensive manure management program that ensures manure is used appropriately as fertilizer. Proper manure management is essential for any agricultural operation because improper use can lead to negative impacts on the environment.
Watch the video “Manure Matters” from Manitoba Pork for more detailed information.
Environmental Savings During the Pandemic
We estimate that over an approximate 40-week office shut-down in 2020 at our Canadian corporate headquarters and smaller regional offices, we avoided over 8.8 million km commuting to and from work and 2,000 tonnes of CO2e.
This is equivalent to taking 435 passenger cars off the road for one year, or equivalent to 241 homes' energy use for one year.*
*Source: U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator.
Reducing Energy Consumption Across Our Operations
Water
Water Performance
As of 2020, we have reduced our absolute water consumption by 1,202,360 m3 and our water intensity by 21.6% from our 2014 baseline. We are proud to report that we achieved our 20% by 2020 water reduction target. We recognize that we need to ramp up our efforts to achieve 50% reduction by 2025, so in 2020, we continued implementing water conservation projects and re-audited our key facilities to update our action plans and identify further opportunities for reductions and efficiencies.
Water Risk Assessment and Conservation
In 2017, Maple Leaf Foods worked with a third-party consultant and WWF Canada to conduct a water risk assessment of its owned/leased farms and facilities and sourced feed and feed ingredient locations in Canada. The assessment of water risk was divided into three categories: freshwater health, freshwater threats and future water yield. Health and threats were further broken down by water quality, pollution, water use and climate change. Future water yield was assessed using climate models and climate change scenarios.
Maple Leaf’s owned/leased pork farms were identified in Southern Manitoba within the Souris, Assiniboine, Red, Lake Manitoba and Lake Winnipegosis, Western Lake Winnipeg and Winnipeg sub-watersheds. Our owned/leased poultry farms were identified in the Southern Ontario sub-watershed of Northern Lake Erie and our chicken hatcheries were identified in Northern Lake Erie and Eastern Lake Huron. In addition to livestock farm type and location, Maple Leaf Foods sources feed and feed ingredients (soy, corn, canola oil, etc.) from the provinces of Saskatchewan, Manitoba, Ontario and Quebec.
It was determined that our organization has not directly caused or contributed to any negative water-related impacts on environmentally sensitive watersheds; however, some of our farms are located in areas where there are high threats to fresh water and overuse of water. The findings of this assessment have helped to inform the strategies we have integrated across our operations to reduce water use at our facilities and across our supply chain, and to reduce economic risk in the future.
In 2020, Maple Leaf Foods conducted a physical climate risk assessment and climate scenario analysis, working with an independent third-party consultant, to better understand the climate-related risks and potential impacts to its livestock, assets, supply chain and operations. This assessment focused on extreme temperatures, freeze-thaw (i.e., number of ice days), water stress, and extreme wind and rainfall. It was determined that all regions in which the Company operates have medium to high risk of water stress due to temperature rise and increased drought risk, which can impact the availability of feed and water resources for sanitation. Using this information, we have prioritized where we should focus our physical risk mitigation efforts, and continue reducing our water consumption across our operations.
All but one of our manufacturing facilities and one of our distribution centres draw and discharge water using municipal sources. The majority of our barns and feed mills use well water due to their rural locations.
Water conservation and reduction opportunities are a key component of our utility audit program and each facility’s environmental sustainability action plan. Every facility has committed to reducing its water intensity by 50% by 2025 (2014 baseline) aligned with our overall company-wide goal.
Conserving Water Across Our Operations
We have been re-auditing our key operations and implementing processes across our facilities that help us reduce our water consumption. Click on the photos to learn more.
Solid Waste
Landfill Diversion Performance
In 2020, we began tracking our solid waste and landfill diversion rate by using diversion reports and invoices provided by our waste management vendors instead of using the findings from our solid waste audits. Although we have a company-wide landfill diversion rate of over 91%, this change in methodology resulted in a reduction of only a 12.1% in our solid waste intensity from our 2015 baseline compared to our previously stated performance. Our new process is a more accurate reflection of our performance and will provide us with greater visibility into how much work needs to be done to reach our goals and better identify areas for improvement.
We continue to conduct solid waste audits annually through our auditing and environmental sustainability audit program to identify opportunities to reduce our solid waste. Similar to how we prioritize our utility audit findings, we conducted an effort–impact analysis of the opportunities to assess execution and prioritization. We assessed impact according to the findings’ contribution to the waste reduction stream, as well as savings. The effort analysis was based on the availability of municipal infrastructure, capital investment, timing and human resource requirements.
From our audits, we determined that the following three areas provide opportunities for improvement in our waste diversion rates: organics, plastics and paper.
Our biggest opportunity continues to be the diversion of organic sludge from our Brandon wastewater facility. Over the past year we have been reviewing various technologies to convert this sludge into renewable energy that can be consumed in our Brandon plant. This will not only help meet our SBTs but significantly improve our overall landfill diversion rate.
| Organics | 50% |
| Non-recyclables | 21% |
| Plastics | 13% |
| Paper Fibres | 13% |
| Metals, Glass, Other | 3% |
Landfill Diversion Certification
In 2020, our New Hamburg facility achieved a 98% landfill diversion certification through GreenCircle Certified, LLC.
In 2020, our New Hamburg Hatchery became the first Maple Leaf Foods facility to achieve landfill diversion certification through GreenCircle Certified LLC. The facility diverts 98% of its waste from landfills. The team at New Hamburg has placed a focus on waste diversion opportunities over the past several years with the majority of the material derived at the facility going to rendering, recycling and composting.
Life Cycle Assessment
We conducted a comprehensive life cycle assessment (LCA) of our products to gain an insight into the relationships between the various production phases and their relative environmental impact(s). Life cycle assessment (LCA) is a useful tool to identify and prioritize initiatives that will further reduce the environmental impacts of the product that is assessed. We conducted a life cycle assessment (LCA) of one of our products, Maple Leaf bacon (375 g product), according to the requirements of ISO 14040 and ISO 14044.
As the results show in the graphic, environmental impacts occur throughout the entire pork production chain, with the most significant impacts coming from feed production and pig raising.
The study highlighted several recommendations that will help Maple Leaf Foods realize a significant reduction in our environmental impact. Optimizing feed composition, considering different transportation modes and investigating ways for further reduction of methane emissions from barns are among the recommendations.
Environmental Impact of Maple Leaf Bacon (375 g)
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* Life cycle assessment of Maple Leaf bacon prepared by Ecofys, a Navigant company, finalized in 2018. In the graphic above, the size of the circle is proportional to the magnitude of the impact.
Reducing Food Waste
We are committed to reducing food loss and waste (FLW) arising from our operations by 50% by 2025.That’s why we’ve implemented a rigorous process to define and measure FLW and are continuing to investigate how FLW is impacting our business though a plant assessment program.
In 2019, we joined seven other leading Canadian companies in formally committing to Canada’s National Zero Waste Council and Provision Coalition in an effort to prevent and reduce food waste in our own operations. We engaged in a rigorous process to define FLW using the Food Loss Waste Protocol developed by the World Resources Institute (WRI). We conducted FLW assessments and worked to establish a baseline for each of our operating units. Due to our vertically integrated business model, we determined that the majority of our food waste occurs within our prepared meats and distribution centre facilities.
In 2020, we conducted additional FLW assessments to help us develop a consistent standard to collect data, identify opportunities for reduction and improve processing efficiencies. Since 2016, we have reduced our FLW intensity by 30.9%. We are proud of the progress we have made to date. However, we still must work to ensure that food waste from our facilities does not end up in landfill. In 2021, we will continue to conduct additional FLW assessments and develop a robust action plan to meet our end goal.
We are committed to reducing food waste arising from our operations by 50% by 2025 (2016 baseline) and investigating how food loss and waste are impacting our entire supply chain.
Eliminating Waste in Our Supply Chain
To transport our products, we have partnered with CHEP, a provider of reusable pallets that are built from 99.7% certified lumber (PEFC and FSC certifications). Every time we use one of CHEP’s reusable pallets, rather than one-way packaging, we eliminate waste and improve efficiency. In 2020, by using reusable pallets, we have reduced substantial environmental impacts:
| BARRELS OF OIL | KG OF SOLID WASTE | MILLION BTUs OF ENERGY | TONNES OF CO2 |
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| 5,442 | 411,610 | 31,447 | 2,308 |
*Data provided by CHEP.
As an organization, we review our business practices to incorporate smart and sustainable efficiencies, ensuring our suppliers make sustainability a high priority. That’s why we’ve proudly worked with CHEP since 2011.
The CHEP business model is inherently circular and helps move more goods to more people in more places than any other organization on earth. Its sustainability vision is to pioneer regenerative supply chains while delivering life’s essentials every day in a nature-positive way.
CHEP’s share and reuse pallets power the Maple Leaf Foods supply chain, bringing several efficiencies and environmental benefits to our business in comparison to one-way, single-use solutions.
In 2020, our manufacturing operations used 961,265 CHEP pallets. The resulting positive environmental impact included avoiding:
• 2,308 tonnes of CO2e (or 3,021 acres of Canadian forests)
• 31,447 million British thermal units (BTUs) (or 5,442 barrels of oil)
• 764,747 board-feet of lumber (or 5,098 mature trees)
• 411,610 kilograms of waste generated (or waste generated by 572 average Canadians)
Through CHEP's customer pick up program (and network designed to reduce empty transport miles), we also avoided adding 143 tCO2e to our supply chain in 2020. This resulted from 2,574 loads with a distance of 170,810 km.
Maple Leaf Foods is proud to work with CHEP on innovative solutions making positive impacts on the Canadian supply chain. We will continue evaluating opportunities to reduce our carbon footprint on our journey to contributing to a regenerative supply chain.
Waste Reduction Across Our Operations
We have been implementing waste reduction initiatives across our operations and in our facilities. Click on the photos to learn more.
Packaging
With Maple Leaf Foods’ vision to be the most sustainable protein company on earth, we have been working with our suppliers and government stakeholders to improve recycling systems, and have also been working on a comprehensive sustainable packaging strategy. Our strategy will be designed to innovate and develop sustainable packaging for all our products. It will include reducing the overall amount of packaging materials used, where possible, sourcing materials with high recycled content and shifting to fully recyclable materials, over time.
Canada Plastics Pact
In 2020, Maple Leaf Foods, along with more than 40 leading Canadian businesses, signed the Canada Plastics Pact (CPP). The CPP unites Canadian businesses, NGOs and public sectors to tackle plastic waste and pollution. The signatories will be collaborating to achieve clear and actionable targets. We developed our own targets based on the CPP’s Golden Design Rules, which are:
1. To define a list of plastic packaging that is to be designated as problematic or unnecessary and take measures to eliminate them.
2. To have 100% plastic packaging designed to be reusable, recyclable or compostable.
3. To have 50% of plastic packaging effectively recycled or composted.
4. To have 30% recyclable content across all plastic packaging.
To learn more, visit Canada Plastics Pact.
Material Reduction
We achieved 30% reduction of material weight across our Deli Meat portfolio on 175g pack sizes by optimizing material gauge selection in 2020.
We achieved a 40% reduction in packaging material weight across Maple Leaf® branded LunchKits by replacing the paperboard sleeve with pre-printed film.
We achieved a 14% average reduction in packaging material weight across Maple Leaf Prime® Further Processed Poultry by right sizing the packaging components.
Recyclable, Post-Consumer Recycled Content (PCR) and Alternative Materials
We used 100% recyclable packaging components for our Swift® Premium Chicken Mini Pot Pie.
We used 100% recyclable trays that are made with 95% post-consumer recycled content for our Maple Leaf Prime® Organic Boneless, Skinless Chicken Thighs, Lightlife™ Plant-based Burger and Greenfield® Fresh Pork.
Modified Atmosphere Packaging (MAP)
We launched our Prepped and Ready portfolio packaging with Halopack, an eco-friendly solution that uses a combination of 90% recycled paperboard and 83% less plastic.* Halopack is the first fully gas-tight cardboard Modified Atmosphere Packaging (MAP) that serves to preserve quality and nutritional value and reduce food waste.
*When compared to a traditional high impact polystyrene (HIPS) tray.
Consumer Education
We are the first Canadian food company to partner with How2Recycle. How2Recycle is a standardized labelling system that provides instructions for proper recycling. We are exploring collaborative opportunities with the How2Recycle program.
We are the world’s first carbon neutral food company to partner with Loop, a global circular shopping platform designed to eliminate the idea of waste by transforming products and packaging from single-use to multi-use. We worked together to support a Canadian launch of the Loop program in 2020.
“Blue Box” Program
In Canada, Maple Leaf Foods is considered a packaging steward of the household curbside recycling program of printed paper and packaging. In most Canadian jurisdictions with provincial collection programs (typically referred to as the “Blue Box” Program), costs required to collect recyclables and manage the program have been shared 50/50 between packaging stewards and municipalities. The fees (Stewardship Fees) associated with these programs are administered by the Canadian Stewardship Services Alliance (CSSA) and by Éco Entreprises Québec (EEQ). Across Canada, provinces are moving toward full producer responsibility, which means packaging stewards will eventually bear 100% of the cost of the provincial Blue Box programs.
Annually, we submit the total packaging weight of our branded products and pay fees for each packaging type as established by the CSSA and EEQ.
Partnering with TerraCycle
In 2020, we maintained our long-standing partnership with TerraCycle, a company that specializes in “recycling the unrecyclable.” For nearly a decade, TerraCycle has accepted any brand and size of our Schneiders® Lunch Mate™ packaging.
Since the program launched, over 1,500 schools across Canada have collected and recycled over three-quarters of a million (over 825,500) pieces of Lunch Mate™ packaging that would have otherwise ended up in landfills.
Supply Chain Spotlight: Sustainable Packaging
To explore sustainable packaging options for our products, we have partnered with one of our packaging suppliers, Cascades. They supply us with clear protein trays that are made with 100% PET recycled plastics, including a majority of post-consumer recycled content from bottle flake. Cascades also supplies us with containerboard boxes that are fully recyclable and are made with a majority of recycled fibre.
Experts in sustainable hygiene and packaging solutions, Cascades drives its product innovation agenda according to eco-design principles and a circular mindset, thanks to its material recovery division. The company ranks 17th among Corporate Knights’ 100 Most Sustainable Corporations in the World and has a long-standing commitment to sustainability and half a century of experience in recycling. In 2020, Cascades launched North America’s first thermoformed cardboard tray that is recyclable and made with 100% recycled fibre.
Partners in sustainability, Maple Leaf and Cascades remain on the lookout for more eco-designed packaging solutions that integrate up to 100% recycled content and support Maple Leaf’s commitment to sustainable and recyclable packaging.
Supply Chain
Learn more about our Carbon Inventory
In 2019, we engaged in a rigorous process to develop our comprehensive carbon management strategy and calculate our carbon inventory to fully understand where our Scope 1, 2 and 3 GHG emissions reside. In 2020, our Scope 3 emissions accounted for 82% of our total GHG emissions. These emissions are produced in our supply chain, including raw materials, feed and ingredients we purchase and consume, and emissions associated with packaging, plus distribution of our products. We realized that if we want to support our vision to be the most sustainable protein company on earth, we need to consider the impacts of our supply chain and develop a plan to drastically reduce our Scope 3 emissions. We set science-based targets approved by the Science Based Targets initiative (SBTi) to reduce our Scope 3 emissions intensity (per tonne of product produced) by 30% by 2030 (2018 baseline). In 2020, we reduced our Scope 3 emissions intensity by 0.88% since 2018.
We began developing our Scope 3 reduction plans to execute on our SBTs, but the finalization of these plans was delayed due to COVID-19. We intend to finalize and commence implementation of our reduction plans in 2021.
Learn more about our Carbon Management Strategy and Science Based Targets.
Supplier Code of Conduct
Maple Leaf Foods’ Supplier Code of Conduct includes ethics, environmental, labour, health & safety and animal welfare. The code establishes standards to ensure that our supply chain is safe, that workers are treated with respect and dignity, that business operations are environmentally responsible, business activities are conducted ethically, and that animals are under good care.
View our Supplier Code of Conduct.
Maple Leaf Foods’ Value Chain
Maple Leaf Foods’ value chain – farm to fork.
Value Chain – Farm to Fork
Inputs
We source North American grains for our animal feed, and we own five mills that produce rations for our pigs. We source hogs and hatching eggs from our own system and also from trusted suppliers.
Barns and Hatcheries
We own pig barns (sow, nursery and finishing barns in Manitoba) and hatcheries (in Ontario and Alberta) that supply chicks to contract producers. All are closely monitored and audited to ensure high levels of animal care.
Transportation
We transport our eggs, chickens and pigs using specially trained drivers, which helps ensure consistent animal care and reduced stress. We use new hydraulic-lift pig trailers and are piloting climate-controlled poultry trailers to further improve animal care.
Processing and Prepared Meats Facilities
Our primary processing facilities, as well as our co-manufacturers, follow strict global food safety standards. Each is monitored by dedicated inspectors and veterinarians from the Canadian Food Inspection Agency (CFIA), the United States Department of Agriculture (USDA) and Food Safety and Inspection Service (FSIS).
Distribution
Our finished products go to one of two Canadian Maple Leaf Foods distribution centres, or directly to customers and international markets.
Grocery Retail and Foodservice
Grocery stores across Canada and the United States carry our brands, as well as private label products that we manufacture on their behalf. We also supply many major restaurants and foodservice companies.
Your Plate
At home and in restaurants throughout North America, people enjoy our high-quality, innovative products every day.
Supply Chain Highlights
Maple Leaf Foods is a member of several organizations and participates in different programs to share knowledge and advance collaboration on supply chain issues. We work with our suppliers, customers and industry stakeholders to identify opportunities to reduce our supply chain impacts. Click on the bubbles in the diagram to learn more or click here to download.
