Megmilk Snow Brand

Sustainability strategy and accountability
The company reports consistently against all its targets.

GHG emissions
The company has set time-bound targets to reduce its scope 1 and 2 greenhouse gas emissions as well as report progress against them. Additionally, the company discloses reduction in its scope 3 emissions level compared to the previous year.

Solid and air pollution
The company partakes in activities related to plastic use reduction and transitioning towards sustainable packaging. The company discloses quantitative data related to the use of petroleum-derived plastic which shows a decrease since the previous year and it reports on the amount of plastic waste generated and proportions directed from or to disposal.

No leading practices were identified in the social inclusion and community impact area.

Provide and promote decent work
The company has publicly stated its commitment to prioritize the health and safety of its workers. Additionally, Megmilk Snow Brand provides information on the proportion of women in its direct operations workforce, broken down by employee category. Furthermore, the company has set a target to increase women’s representation in management positions by more than 10% by March 2026.

Respect human rights
Megmilk Snow Brand has a publicly available policy statement committing it to respect human rights. This commitment extends not only to the company itself but also to its suppliers, as reflected in its policy statements emphasizing adherence to ILO core labor rights. It also discloses a process for identifying and addressing human rights risks and impacts within its operations, both internal and across its supply chain.

By openly disclosing the outcomes of its human rights risk assessments, the company showcases its transparency and willingness to be held accountable for its actions. Additionally, the company’s engagement goes beyond statements, exemplified by a case study illustrating proactive measures taken to address a significant human rights risk issue.

Lobbying
The company does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Stakeholder engagement
The company does not disclose how it engages with stakeholders, nor the issues it raises during such activities.

Sustainability strategy and accountability
While the company states that it has a materiality assessment, it has an opportunity to disclose its process for identifying and prioritising its most relevant sustainability topics and impacts, including how external stakeholders are involved in the process. Also, it discloses some sustainability objectives/targets including climate and water. However, it could establish group-wide targets for the most material parts of its value chain. Furthermore, the company has an opportunity to link performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. Lastly, it could disclose whether its highest governance body has expertise with respect to the company’s most material sustainability topics beyond nutrition.

Ecosystem conversion and restoration
No evidence was found regarding the company’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

GHG emissions
The company should set time-bound targets to reduce it scope 3 emissions and report progress against them. Crucially, its targets need to align with a 1.5-degree trajectory.

Impact and dependencies assessment
The company has an opportunity to disclose assessments of its impacts on nature, including biodiversity, within its own operations and in its supply chain. It also has the opportunity to disclose its dependencies on nature within its own operations and upstream business relationships.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Key areas and species
The company has an opportunity to disclose locations within or adjacent to areas important for biodiversity, both in its own operations and its supplier locations. It could also disclose existing species populations existing in or adjacent to both its own and its suppliers’ locations, as well as the conservation status of species identified at its own sites according to national and international lists.

Resource exploitation and circularity performance
The company currently discloses its raw materials, but there is an opportunity for the company to provide more detail on these materials as well as the resources used for packaging. The company does not report quantitatively on its circularity performance throughout the entire organization. Furthermore, the company has the potential to disclose activities aimed at enhancing soil health or promoting agrobiodiversity in its production or sourcing practices. Additionally, it has the opportunity to establish a target for improving soil health in its production or sourcing practices and to report on the progress made towards achieving this target.

Solid and air pollution
The company does not disclose relevant information related to pollution in its operations or supply chains.

Water
The company does not disclose relevant information related to water, in its operations or supply chains.

Indigenous Peoples’ and land rights
The company does not show if it is committed to respecting Indigenous Peoples’ rights or land rights of local communities.

Safe, clean, healthy and sustainable environment
The company has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
The company could consider describing the process for identifying bribery and corruption risks in specific locations and activities. It has the opportunity to disclose a publicly available policy statement that prohibits bribery and corruption. Additionally, the company could explore the inclusion of anti-bribery and anti-corruption clauses in contracts with business relationships. While the company has a mechanism to raise concerns, it could specify the accessibility of the concerns mechanism for all stakeholders and whether complainants can opt for anonymity.

Furthermore, the company has the option to develop a policy outlining its approach to lobbying and political engagement. It could also consider disclosing a policy statement indicating that it refrains from making political contributions. The company could also share information about its lobbying expenditures and its requirement for third-party lobbyists to adhere to its lobbying and political engagement policy.

Provide and promote decent work
The company can enhance transparency by revealing a comprehensive policy for suppliers’ worker health and safety. It could detail how it monitors suppliers’ performance. Setting a time-bound objective for a living wage and its attainment could further demonstrate commitment. Additionally, disclosing methodologies for determining living wage and strategies to support payment by suppliers is vital.

Moreover, the company has an opportunity to disclose a more explicit public commitment to women’s empowerment. The company could also disclose board composition, aiming for 30% female representation. Additionally, the company could provide the ratio of the basic salary and remuneration of women to men in its total direct operations workforce for each employee category

Respect human rights
The company currently discloses its efforts to identify and specify human rights risks. However, it would be beneficial if the company also provided a detailed description of its process for assessing these risks. This description should include an explanation of how relevant factors, such as geographical, economic, social, and other considerations, are taken into account.