DMK (Deutsches Milchkontor)

No leading practices were identified for the company in the governance and strategy measurement area.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
The company conducted a materiality analysis in 2019 and developed its sustainability strategy into four thematic areas: climate protection, animal welfare, biodiversity and people. However, there is room for DMK to improve its reporting by disclosing time-bound targets for its most relevant sustainability topics and by including nutrition related targets.

Governance and accountability for sustainable development strategy
While responsibility for the company’s sustainable development strategy mainly lies with its corporate strategy department, DMK has an opportunity to strengthen accountability by assigning this responsibility to its highest governance body and disclosing further information on its decision-making processes and oversight responsibilities.

Stakeholder engagement
The company does not disclose sufficient stakeholder engagement activities, including how it selects the stakeholders, nor an overview of the topics discussed or their outcomes.

Scope 1, 2 and 3 greenhouse gas emissions
The company discloses a time-bound target to reduce greenhouse gas (GHG) emissions by 15% by 2030, compared to a 2017 baseline. However, it does not report against the target. Regarding its scope 3  (GHG) emissions, the company provides qualitative evidence of efforts to reduce its emissions through its Milkmaster Programme. There is an opportunity for DMK to disclose quantitative reductions for its scope 3 GHG emissions.

Protection of terrestrial natural ecosystems
While the company has commitments to deforestation and conversion-free (DCF) supply chains through the UTZ standard and Roundtable on Sustainable Palm Oil (RSPO) certifications, it has an opportunity to strengthen its commitment by setting targets for achieving DCF supply chains for its relevant high-risk commodities and disclosing it sources its relevant high-risk commodities from.

Protein diversification
DMK discloses that it is diversifying its protein portfolio through its Kalder Kaffee products, yet it has an opportunity to strengthen its commitment by setting targets to increase the production or consumption of alternative proteins.

Soil health and fertiliser use
While the company discloses qualitative evidence through its Milkmaster Programme, it has an opportunity to set targets to increase the percentage of production from sustainable practices that optimise use of fertilisers and improve soil health, and reporting progress against the targets.

Water use
DMK discloses that it is reducing water withdrawals in its operations, but could strengthen its commitment by setting a time-bound target and reporting against it.

Animal welfare
While the company has a commitment on animal welfare that addresses animal welfare through its Milkmaster Programme, it is not apparent whether the policy applies to all key species, geographies or products that are relevant to the company.

Availability of healthy foods 
While the company discloses that it introduces reformulated products such as its MILRAM buttermilk, it has an opportunity to disclose reformulation efforts regarding key nutrients such as fat and salt.

Accessibility and affordability of healthy foods 
The company does not disclose a commitment and activities to improve the accessibility and affordability of healthy foods for vulnerable groups.

Clear and transparent labelling
The company does not disclose that it provides nutritional information through clear, transparent and accurate labelling.

Responsible marketing
The company does not disclose a responsible marketing policy, nor guidelines specific to marketing to children.

Food safety
While the company discloses the number of sites certified to a Global Food Safety Initiative (GFSI)-recognised food safety scheme, it does not provide evidence that 100% of its own operations are covered by a GFSI-recognised food safety scheme or other recognised certification.

Child labour and forced labour
The company does not disclose a commitment to prohibit child and forced labour in its operations and supply chain.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Health and safety of vulnerable groups
The company does not specifically recognise the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women, and young farmers.

Farmer productivity and resilience
The company does not disclose a commitment or examples of activities to support the resilience, productivity and access to markets for farmers and small-scale producers in its supply chain.

Land rights
The company does not commit to recognising and respecting the legitimate tenure rights related to the ownership and use of land of local communities.

DMK commits to respecting human rights and provides grievance mechanisms for its workers. However, no sufficient commitment to respecting the right to freedom of association in its own operations was found in the public domain. Additionally, DMK provides no evidence of a human rights due diligence process and does not disclose it engages with affected and potentially affected stakeholders.

DMK commits to health and safety, collective bargaining and workforce, but can improve its performance by increasing its disclosure of key metrics related to these topics. There is an opportunity for DMK to improve its performance on living wage, as no targets or evidence towards paying a living wage in its own operations and supply chain were found in the public domain. Moreover, no evidence of commitments regulating working hours and gender equality was found.

DMK publicly discloses policies and commitments on personal data protection. There is room for the company to improve its disclosure on its processes regarding bribery and corruption. On tax, DMK only discloses little information and no publicly available tax strategy was found. In addition, the company does not demonstrate a sufficient commitment to responsible lobbying and political engagement and does not report on key metrics under this topic.