Associated British Foods

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
Associated British Foods has identified and prioritised ten material issues through a materiality assessment and has integrated these into the company’s wider sustainability strategy. However, the company can increase its disclosure by linking these material issues to time-bound targets and reporting progress against them on an annual basis.

Governance and accountability for sustainable development
Although Associated British Foods discloses a governance framework for its sustainability strategy and states that the chief operating officer has sustainability-related remuneration objectives, it does not provide an overview of the framework’s decision-making process and oversight responsibilities. This presents an opportunity for the company to increase its level of disclosure on this topic as well as to detail how the remuneration policy links to the benchmark’s three measurement areas of environment, nutrition and social inclusion.

Stakeholder engagement
Associated British Foods discloses a list of the groups of stakeholders it has engaged with during the development of its sustainability strategy. It also discloses the outcomes of its approach per stakeholder group, which have been integrated into the sustainability strategy and categorised in line with the benchmark’s three measurement areas. However, the company can improve in this area by disclosing how it has engaged and prioritised its engagement with each stakeholder group.

Scope 1 and 2 greenhouse gas emissions
Associated British Foods reports on its scope 1 and 2 GHG emissions and has disclosed quantitative evidence of reductions in both across its different business segments. However, there remains an opportunity for the company to disclose a time-bound target applicable to the entire business group, rather than only its subsidiaries, and to start reporting progress against this target on an annual basis.

Protection of terrestrial natural ecosystems
While the company discloses targets for achieving deforestation and conversion-free supply chains for soya and palm oil by 2025 through its subsidiary AB Agri, a group-wide deforestation target is still being developed. Furthermore, the company can increase disclosure on the regions it sources its high-risk commodities from and report on the proportions of commodities which are currently deforestation-free.

Food loss and waste
While Associated British Foods reports on efforts to reduce food loss and waste, it can increase its disclosure on the topic. Indeed, considering the importance of the topic to the company, Associated British Foods should increase its level of reporting by providing quantitative evidence of reducing food loss and waste across its value chain and disclosing time-bound targets to address the issue.

Availability of healthy foods
Associated British Foods provides examples of reducing salt, sugar and fat in its products through its subsidiaries as well as a statement committing it to support the production of healthy foods. However, the company can improve its performance by disclosing quantitative evidence of reductions of these ingredients and applying this across the business.

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

Food safety
The company demonstrates compliance with national regulations and guidelines, such as the General Principles of Food Hygiene, reporting that 80% of owned production facilities accredited meet industry standards. However, considering the importance of this indicator to the company, it should work towards disclosing evidence that 100% of its own facilities are certified to food safety schemes recognised by the Global Food Safety Initiative or other widely recognised certifications.

Farmer and fisher productivity and resilience
Across its subsidiaries, Associated British Foods provides examples of efforts to support farmers and small-scale producers throughout its agricultural value chain. Nonetheless, there remains an opportunity for the company to increase its disclosure on this topic by providing quantitative evidence of the impact its support has had on the target groups.

Land rights
The company has a commitment to recognise and respect legitimate tenure rights related to the ownership and use of land according to international standards. Moreover, the company requires that its suppliers adhere to a similar standard by codifying it in a supplier code of conduct. However, according to the company’s whistle-blowing policy, its grievance mechanism is only accessible to internal employees, offering an opportunity for the company to extend the mechanism to external stakeholders as well.

Living wage
Associated British Foods commits to paying a living wage in its supply chain. However, it does not have a time-bound target for paying a living wage across its operations or supply chain. Moreover, the company does not disclose which methodology it uses to determine a living wage, presenting an opportunity for the company for future reporting.

Associated British Foods discloses policies and commitments across most key topics relating to respect for human rights. This includes policies outlining its processes for identifying human rights risks and impacts and how it assesses them. However, the company lacks a commitment to respect the human rights that the ILO has declared to be fundamental rights at work. Moreover, the company does not disclose evidence of integrating and acting on human rights risk and impact assessments or grievance mechanisms for external parties.

Associated British Foods discloses commitments across most areas related to providing and promoting decent work are disclosed, including health and safety, living wage, working hours and collective bargaining. No evidence was found, however, on the implementation and monitoring of these commitments. For example, regarding health and safety, the company could provide data on the number, rate and type of work-related injuries in its reporting. Meanwhile, regarding working hours, the company could provide disclosure on how it regulates the number of hours worked. Furthermore, the company does not demonstrate a commitment to workforce diversity or gender equality and woman’s empowerment.

Associated British Foods discloses policies and statements regarding personal data protection and its approach to tax. However, there remains an opportunity for the company to clarify taxes paid in each jurisdiction where it operates as well as its approach to the collection of personal data. Similarly, the company has policies and statements addressing responsible lobbying and anti-bribery. However, it is unclear how they are implemented and monitored, particularly with supply chain partners.