2 2022 SUSTAINABILITY PROGRESS REPORT
TABLE OF CONTENTS
Introduction
Letter from the CEO | About Us | 2022 Highlights
Sustainability Is Our Business | About This Report | Awards and Recognition ESG at Darling Ingredients | Double Materiality Assessment
Environment
Oversight and Accountability | Environmental Management System Climate Change | Greenhouse Gas Emissions and Energy Use Green Energy | Waste | Water | Biodiversity and Land Use
Social
Health and Safety | Employee Engagement
Diversity, Equity and Inclusion | Community Engagement
Governance
ESG Oversight | Business Ethics and Compliance | Product Quality and Safety Political Involvement | Responsible Sourcing | Human Rights
Animal Welfare and Testing | Data Privacy and Cybersecurity
Appendix
GRI | SASB | TCFD Index
03
11
21
27
36
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"Being a leader in the business of
circularity for more than 140 years has taught us many lessons. The greatest of which is this: the best way to protect nature is to act like nature."
Dear Stakeholders,
Having recently celebrated 20 years of serving as Chairman and Chief Executive Officer, I have been reflecting on our company's journey. During that time, we've grown the business from 20 locations in the United States to more than 260 locations around the world. As a growing family of brands and businesses we are committed to continuing our strong focus on sustainability. Our unique size and scale allows us to enable entire industries to be less wasteful and more sustainable, and we continually seek out ways to maximize resources and help move the world toward a more circular economy.
In this report, you'll read about our significant 2022 sustainability achievements, including meeting our 2025 goal for water intensity reduction three years ahead of schedule. I am incredibly proud of our organization for identifying and implementing opportunities to reduce water use quickly and kickstarting our journey toward sustainable water use across all operations.
Additionally, we met our renewable fuel production goal. Our Diamond Green Diesel (DGD) Port Arthur facility came online in November 2022, nine months ahead of schedule and under budget, increasing DGD's total annual production capacity to more than 1.2 billion gallons of renewable diesel. We also announced
a final investment decision in sustainable aviation fuel, which will bring our renewable fuel solutions to the aviation industry.
You'll also read about our renewable energy production in Europe, where we provided our customers double the amount of renewable energy from the previous year, through both acquisition and development of new facilities.
Since May 2022, we have closed three key acquisitions that will continue to help grow our specialty ingredients business and also increase low-carbon feedstocks for our current renewable diesel production and soon-to-be sustainable aviation fuel production.
Valley Proteins, FASA Group and Gelnex are all strong businesses that will enable us to increase the scale of Darling Ingredients' sustainability impact in the coming years.
In 2022, we formally committed to the Science Based Targets initiative, recognizing the need to set climate goals that align with global ambitions to reduce emissions quickly. As part of this work, we conducted a full scope 3 assessment for the first time, details of which are outlined in this report, to help understand climate impacts throughout our value chain.
We also added new leadership in our sustainability department to help define our strategy, set targets and enable change in our global operations.
A successful sustainability program focuses on issues that are important to our various stakeholders, which is why we conducted our first-ever double materiality assessment, highlighted in this report.
Being a leader in the business of circularity for more than 140 years has taught us many lessons. The greatest of which is this: the best way to protect nature is to act like nature.
Sincerely,
Randall C. Stuewe
Chairman & CEO
4 2022 SUSTAINABILITY PROGRESS REPORT
About Us
FOUNDED
1882
260+
FACILITIES
NEARLY
15,000
GLOBAL EMPLOYEES
HEADQUARTERS
IRVING TEXAS
$6.5B
NET SALES
15+
COUNTRIES
Net
Sales
Feed $4.5B
Food $1.5B
Fuel $533M
2022 Highlights
2022 was a year of strong sustainability progress for Darling Ingredients. We continued to advance our goals, demonstrating sustainability is core to who we are and what we do. In 2022, we:
Decreased our global water intensity by 20%, achieving our 2025 goal three years early.
Decreased global emissions intensity by 8%,
per unit of raw material processed, marking strong progress alongside business growth.
Opened a new renewable diesel plant through Diamond Green Diesel, our joint venture, to expand total annual production capacity to 1.2 billion gallons of renewable diesel.
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Our Rendering Process
Sustainability Is Our Business
At Darling Ingredients, we transform the unused into the invaluable.
Over the last 140 years, this company has become the most important platform for extracting the hidden potential of our world's resources and turning them into sustainable solutions for everyday life. We take what would typically be considered refuse and efficiently transform it into invaluable ingredients and in-demand products.
Raw Materials
Receiving
and Sizing
Water Vapor
Condenser
Continuous
Cooker
Recovered
Waterfor
Repurposing
Separator
In the meat production process, only about 50% of an animal makes it to a dinner plate. Keeping the other 50% out of landfills and incinerators requires innovative, sustainable solutions. Darling Ingredients creates those solutions,
repurposing approximately 15% of the world's meat industry waste into value- added products, including essential products like green energy, renewable diesel, collagen, fertilizer, animal proteins and meals, and pet food ingredients. Our innovative services not only prevent waste from entering landfills but also reduce waste-related emissions around the world.
Fat/Protein
Press
Fat | ||
Protein | Fat | |
Protein Meal | Settling | |
Tank | Solids | |
Storage/Sale |
Solids
Centrifuge
Fat
Fat
Storage/Sale
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About This Report
Our 2022 Sustainability Progress Report describes our environmental, social and governance (ESG) programs, progress and performance, and demonstrates how, at Darling Ingredients, sustainability is central to the way we operate.
In this report, we disclose information in line with the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), the United Nations Sustainable Development Goals (UN SDGs) and the Task Force on Climate-related Financial Disclosures (TCFD). This report includes information from our fiscal year,
January 2 - December 31, 2022, unless otherwise noted.
We welcome your feedback on our Sustainability Progress Report, programs, policies and commitments. Comments can be sent to communication@darlingii.com.
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Awards and Recognition
Listed among America's Most Responsible Companies by Newsweek
Recognized as an ESG Industry Top Rated Company by Sustainalytics Ranked among the 100 Best ESG Companies by Investor's Business Daily
Winner of Innovation in Food and Beverage for 2023 from D Magazine Featured in the 50 Sustainability and Climate Leaders Campaign
in 2020, led by Bloomberg and TBD Media Group
Named a TxN 20 Honoree by Texan by Nature
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ESG at Darling Ingredients
At Darling Ingredients, ESG is a critical element of the way we do business. Our more than 150 product innovations speak for themselves. We are always looking for ways to maximize resources and move the world to a more circular economy. With our unique skillset and scale, we make industries less wasteful and more sustainable.
Oversight of our ESG strategy starts at the highest level of the organization, with our Board of Directors and the Board ESG Committee. This responsibility then filters from Executive Management to each and every Darling Ingredients employee across the globe-because it's the responsibility of every employee to deliver continued innovation and meaningful progress against our targets and commitments.
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Double Materiality Assessment
To inform and update our ESG strategy, we partnered with a third party to conduct a double materiality assessment. The assessment evaluated materiality across two dimensions: impact materiality, or the ESG topics that Darling Ingredients might impact, and financial materiality, or the ESG topics that might impact our business performance.
Double | Impact | Financial |
Materiality | Materiality | Materiality |
Impact Materiality
If the company is likely to impact an ESG topic due to its operations- whether directly or indirectly.
Financial Materiality
If the company is likely to be financially impacted by an ESG topic.
The assessment surveyed a range of stakeholders, including internal stakeholders (e.g., directors and employees) and stakeholders across our value chain (e.g., suppliers and customers). Integrating this feedback enhances the strength of our strategy and helps to identify, understand and manage related risks and opportunities.
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While our results clearly show we need to prioritize certain topics- energy and emissions, circular economy, climate change, sustainable supply chains, ethics and compliance, product safety and quality, and employee health and safety-we recognize that to promote sustainable business, we must also integrate relevant topics that are not as material into our ESG strategy. For example, though topics like human rights, pollution and diversity, equity and inclusion (DE&I) did not rise to the top of the matrix, they are nonetheless important topics that will remain a part of our strategy.
Sustainable supply chains became a significantly higher priority topic as compared to our 2021 materiality assessment. We recognize this is both a risk and an opportunity, and an area where we plan to more deeply engage with our suppliers to drive sustainability improvements across our supply chain.
These results inform our reporting and allow us to focus and expand upon our ESG policies, practices and goals.
Environmental Topics
Social Topics
Governance Topics
Impact Materiality
Double Materiality Assessment
Energy & emissions
Circular economy
Climate change
Research, development | Sustainable supply chain |
& innovation | |
Biodiversity & land use | Ethics & compliance |
Data privacy & | Product safety & quality |
security | Employee health & safety |
Human rights |
Diversity & inclusion | Water |
Business conduct | |
Employee attraction, | |
development & retention | |
Community engagement | Corporate governance |
& investment |
Pollution
Financial Materiality
Attachments
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Disclaimer
Darling Ingredients Inc. published this content on 28 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2024 12:03:02 UTC.