Sharing the sustainable science of agri-food: A closer look at the 2022 Alltech Sustainability Report

The agri-food community has the great privilege of nourishing our people, our animals and our land.

It is a significant responsibility — and yet, not a new one.

Society was built on the ingenuity of our planet’s original stewards of the land — farmers, ranchers and growers. Their innovation and grit nourished a growing world and paved the way for advancements in science and technology.

Today, climate change threatens agriculture’s ability to feed the world’s growing population. Fortunately, the world’s best problem solvers are on the case.

We believe agriculture has the greatest potential to positively shape the future of our planet. That’s why Alltech is uniting the agri-food community in Working Together for a Planet of Plenty™. It’s not just our mission. It’s our purpose.

Through collaboration and innovation, the agri-food community can create a world where science-based solutions help ensure sustainable food production for the global population. Agriculture has already made huge strides in sustainability. Imagine what is possible when we all work toward the shared goal of creating a world of abundance for future generations.

Together, we can provide nutrition for all, revitalize local economies and replenish the planet’s natural resources.

Demonstrating our commitment

At Alltech, we see opportunities in every challenge. We are dedicated to delivering smarter, more sustainable solutions to advance the health and performance of animals while also lowering their impact on the environment. We are committed to lowering our carbon footprint and helping producers worldwide find and implement solutions to their sustainability challenges.

We hope sharing our commitment to creating a world of abundance — and outlining the steps we’re taking to align our business with that goal — will inspire others to do the same.

The 2022 Alltech Sustainability Report shares our sustainability journey through data and stories from Alltech team members around the world. It demonstrates our commitment to ambitious climate action and advancing the U.N. Sustainable Development Goals and the Ten Principles of the U.N. Global Compact.

This includes:

• Our 2021 baseline emissions and our roadmap to reduction
• Progress toward key performance indicators
• Our efforts to promote an inclusive work environment where each person feels valued and inspired to do their best
• Our initiatives to nurture a culture of sustainability in the workplace and promote sustainability in our communities
• Our collaborative approach to advancing environmental actions in the industry
• Our belief that agriculture is vital to saving the planet

A closer look

Emissions

We are committed to reducing our GHG emissions as recommended by the Intergovernmental Panel on Climate Change (IPCC) to limit global warming and combat the most urgent challenges posed by climate change. IPCC has set ambitious targets that require significant transformations across all sectors of the global economy.

The world must reach net-zero GHG emissions by 2050 to limit global warming to 1.5°C and avoid the worst impacts of climate change. Any reduction target between now and 2050 should fall on that straight-line trajectory to net zero.

Setting and pursuing these targets demonstrates our commitment to a world of abundance for future generations.

Our sustainability team worked with colleagues from numerous departments across the company to collect and analyze our data to create an emissions reduction roadmap that will help us meet our GHG goals. We will report our progress toward our GHG goals in our annual sustainability report and to the CDP (formerly called the Carbon Disclosure Project).

Efficiency investments

Alltech invested $4.5 million in efficiency projects in 2022. These projects reduced our emissions by 7,600 metric tons CO₂e per year, which represents 82% of our necessary GHG reduction for 2023. We conducted 11 site-specific energy audits and efficiency improvement plans in 2022, and we completed 47 energy efficiency project feasibility studies.

Numerous global Alltech locations offer electric vehicle charging stations. We have invested in solar energy in Spain and Serdán, México. A third project is planned at Alltech U.K.

There are many opportunities to further reduce our emissions through energy conservation practices, such as upgrading to energy-efficient equipment, process efficiencies and other innovative solutions. We recognize the importance of reducing our reliance on fossil fuels and are exploring both on-site and off-site options for solar and wind power.

Sustainable Development Goals

In 2019, Alltech committed to advancing the United Nations Sustainable Development Goals (SDGs), the world’s largest corporate sustainability initiative. It was a natural step for Alltech because we are passionate about sustainability and making a positive impact on the planet we all share. Our continued commitment to the SDGs strengthens our mission to achieve a brighter future — together — and to inspire others in our industry to do the same.

Alltech identified nine of the U.N.’s 17 SDGs that we feel most closely align with our core business and are therefore actionable by the company:

Alltech has developed specific goals for each of the SDGs that are aligned with our business, and we are implementing a system for measuring and reporting our progress on these SDGs. We expect to discover more opportunities for innovation and improvement as we work to further advance these SDGs.

Agriculture is at the forefront of solutions to nourish and nurture our planet and its people — and we are vital to meeting the world’s climate change goals. By adopting new technologies, improving business practices and embracing innovation, the agriculture industry is working together to harness the power of human ingenuity and the sustainable science of agrifood to create a Planet of Plenty.

Key performance indicators

We developed a set of KPIs to evaluate the sustainability of our business and stay on target to meet our goals. We have evaluated our performance and created future goals in several categories, including environmental performance, labor and human rights, fair business practices, sustainable procurement, social impact, innovation, and product responsibility.

Highlights include:

• 40% of Alltech team members in management positions are women
• 52% of participants in Alltech's Mini-MBA executive management program are women
• 100% of production team members are trained in health and safety
• 70% of office-based team members are engaged in role-related training and development
• 30 countries are served by our climate advisory service, Alltech E-CO2
• We have completed seven produce life-cycle analyses and plan to complete 40 by the end of 2023
• Environmental risk assessments have been conducted on 25% of our manufacturing facilities within the past two years. We plan to complete assessments on all facilities by 2024.

Logistics and supply chain efficiency

Alltech is taking steps toward achieving a more sustainable supply chain, carefully analyzing our logistics procedures to shine light on areas in which improvements can be made, including assessing suppliers, processes and materials used, and finding ways to optimize routes, energy and fuel use.

As part of our ongoing work to make sure we engage with the most sustainable suppliers, we developed the Alltech Supplier Sustainability Questionnaire, which asks about suppliers’ environmental management systems, occupational safety and hygiene, labor and human rights, and eco-certification.

Sustainable packaging

Alltech and our family of companies have implemented packaging changes for several of our nutritional solutions. Our team carefully studies the available options for each product, fully considering the multiple ways a change in packaging could affect the environment and the nutritional integrity of the technologies we offer.

Highlights include:

• All packaging for Alltech Coppens' products is 100% recyclable.
• Ridley Block Operations produces a 100% biodegradable BioBarrel^® container, which saves almost 1 million pounds of plastic each year.
• Ridley Feed Ingredients’ Lifeforce™ horse supplements are packaged in pouches that use post-consumer recycled (PCR) materials.
• Acutia supplements are provided in compostable pouches that can be used to refill either the reusable glass jar included in the complimentary starter kit or the customer’s own storage container. These pouches are shipped in envelopes made of post-consumer waste. In 2022, Acutia supported the removal of 116.3 tonnes of CO₂ from the atmosphere.

More to come

Through strategic collaboration and stewardship, we can transform the future of our planet with sustainable farming and nutrition — and create a world of abundance for future generations.

We will share more stories from our sustainability report in the coming days and weeks.

Stay tuned for a closer look at:

• Our collaboration with organizations and individuals to address some of the most pressing issues facing the agri-food community
• How our nutritional technologies help to create more sustainably produced meat, milk, eggs and seafood and crops grown in a healthy soil
• Our research team's leading-edge solutions that harness the power of science to nourish people and the planet
• How our team members continually look for ways to be more environmentally responsible and make a difference in their communities
• Alltech E-CO₂, the Alltech® Quality System, Alltech® IFM and more

Click here to read the executive summary of the report.

Learn more at alltech.com/sustainability.