Smithfield Foods Sets the Standard for Corporate Climate Responsibility
Smithfield Foods Sets the Standard for Corporate Climate Responsibility
Smithfield Foods-the largest American food processor based in Smithfield, Virginia for instance- a food-processing corporation, has revealed a new GHG reporting framework which aims to reduce the environmental impact of food production. The tool follows and expresses the emissions associated with its food production, which includes methane, one of the most active greenhouse gases that cause climate change.
The New GHG Reporting Framework
The new framework extends the efforts of Smithfield Foods to improve the sustainability of its operations. Smithfield is perceived to be a pioneer in food industry sustainability, with running programs of sustainability for more than two decades. This newly introduced GHG reporting framework seeks to clearly quantitate the environmental impact of the firm.
Its Company's system of GHG reporting has been based on two main metrics.
Methane Capture: The system will track the amount of methane captured from farms owned or operated by Smithfield Foods, including contract farms. Methane is among the greenhouse gases with the strongest impacts on global warming, so every molecule of captured methane reduces the company's carbon footprint.
GHG Intensity: Tons of CO2 per 100 pounds of food--Smithfield will also use this metric to measure CO2. This will enable the company to keep track of and manage the efficiency of its production process in terms of GHG emissions.
This reporting framework will not only help Smithfield work to reduce its overall emissions but will also provide environmental metrics for the production of Smithfield's customers so that they can make more informed choices as to what they want to eat.
Methane Capture and Energy Projects
Smithfield has focused keenly on capturing methane from its operations, particularly from hog farms. The company has reduced its hog production by around 20%, closing some facilities and opening new ones and adopting more sustainable and more efficient practices that reduce environmental impacts.
For another, it is partnering with the energy industry, which is converting the methane from its farms into clean energy. That reduction of methane use converts the captured methane into a resource-the company reduces more GHG emissions in that respect while it assists with the renewable energy generation process. Emissions mitigation or reductions enabled by such methane-to-energy projects will be accounted for in the new reporting system.
A Step Closer to More Transparency End
The new framework that the company has resolved into will be one of such frameworks as growing concerns of consumers over the products they buy continue to zoom towards the environmental impact those products and their operations impact. The hope is to offer greater transparency and accountability regarding the GHG emissions in that structure. To that effect, the data that accrues will be shared with the public for a clearer view of the company's efforts in combating climate change.
This year, the GHG reporting system will be launched and become a part of the general framework that outlines the overall strategy toward sustainability at Smithfield. Perhaps it will help the company do something better or influence others in the food industry to set an example, so it's more transparent about its environmental impact.
Collaboration and Long-Term Goals
Collaboration forms the core of efforts by Smithfield to reduce GHG emissions. The company is hard at work working together with farmers as well as energy partners to develop systems that reduce methane and propel cleaner energy solutions forward. These partnerships represent an important component in the company's strategy to meet its sustainability goals long-term.
The new framework unveiled promises to make this happen-the demand for more precise information regarding the firm's carbon footprint. This sets the way for even further reduction of emissions. It is, therefore, consistent with Smithfield's innovative agendas in the face of environmental issues not to compromise on efficiency in food production processes.
In Focus Sustainability
In addition to reporting against the GHG framework, Smithfield has engaged in other practices to reduce its environmental footprint. The company has been focusing on water conservation and waste reduction, and generally the sustainability of its supply chain for many years. It is reflective of a wider trend within industry that companies are being pushed to adopt their complete environmental footprint-from farm to table.
One of the things that Smithfield has undertaken through its sustainability initiatives is reducing its environmental footprint while simultaneously making those efforts a significant part of the brand. This is placing the company as a leader in sustainable food production because consumers and stakeholders want transparency and business practices that listen and adjust.
The introduction of the GHG reporting framework by Smithfield Foods indicates a major shift in trends for the food industry. Even though climate change continues to rise on the radar as an imperative issue, all industries are beginning to be forced toward accountability regarding their environmental impact accounting. Possibly, this reporting framework will first of all set a level of precedent amongst other firms within the food processing industry since it now tries setting standards on the kind of sustainability measures that need to follow.
Smithfield's approach emphasizes a data-driven way in which to ensure environmental sustainability. The company is focusing mainly on metrics that can be measured, including methane capture and GHG intensity, facilitating the monitoring of performance and taking corrective action as necessary. This benefits the environmental element while allowing Smithfield to prepare better for future regulation and consumer requirements.
Conclusion
The new framework for reporting GHG presented by Smithfield Foods is a big step to more environmental transparency in the food industry. Through methane capture and GHG intensity, the company aims to minimize its carbon footprint and simultaneously shed more light on the environmental impacts of the products that it is offering to consumers. As the system is rolled out this year, it is expected to become an anchor point of Smithfield's larger strategy around sustainability and a model for other players in the food industry.
Source : Smithfield Foods