Hormel Foods Showcases Meaningful Progress in its 18th Annual Global Impact Report

Rhea-AI Summary

Hormel Foods (NYSE: HRL) has released its 18th Global Impact Report, showcasing progress towards environmental, social, and governance goals in fiscal 2023. Key achievements include:

• Validating science-based targets for emissions reduction
• Reducing product packaging by 1.7 million pounds
• Achieving the lowest recordable incident rate in company history
• Providing free two-year college education to over 200 dependents of U.S. team members
• Contributing $12.5 million in cash and products for community upliftment

The report follows GRI Standards and SASB guidance, aligning with select UN Sustainable Development Goals. Hormel Foods continues to be recognized as a leading corporate citizen, named one of Fortune's World's Most Admired Companies and Newsweek's America's Most Responsible Companies.

Positive

• Validated science-based targets for emissions reduction, aligning with 1.5°C scenario
• Reduced product packaging by 1.7 million pounds through design optimization
• Achieved lowest recordable incident rate in company history, 18% improvement from prior year
• Contributed $12.5 million in cash and products for community upliftment
• Recognized as one of Fortune's World's Most Admired Companies and Newsweek's America's Most Responsible Companies

Negative

• None.

Corporate Sustainability Expert

Hormel Foods' 18th Annual Global Impact Report showcases incremental progress in sustainability efforts, but lacks substantial financial implications. Key achievements include validating science-based targets for emissions reduction and reducing packaging by 1.7 million pounds. While these are positive steps, they're expected actions in today's corporate landscape rather than groundbreaking initiatives.

The company's focus on community engagement and employee benefits, such as the Inspired Pathways program, may enhance brand reputation and employee retention. However, the $12.5 million in community contributions, while commendable, is relatively modest for a Fortune 500 company. The report primarily serves as a public relations tool rather than indicating significant operational or financial shifts that would materially impact investor decisions.

ESG Analyst

From an ESG perspective, Hormel's report demonstrates steady progress but lacks transformative initiatives. The validation of science-based targets aligns with industry trends rather than setting new benchmarks. The 18% improvement in recordable incident rate is noteworthy for risk mitigation and potential cost savings.

However, the report is light on quantitative metrics for environmental impact beyond packaging reduction. Investors should note the absence of specific financial allocations for sustainability initiatives or their ROI. While the company's recognition by Fortune and Newsweek is positive for brand value, it doesn't necessarily translate to financial outperformance. Overall, this report suggests Hormel is maintaining pace with ESG expectations rather than leading the industry, which may be sufficient to avoid ESG-related risks but unlikely to drive significant value creation.

The company continues to advance its environmental and social impact goals and commitments

AUSTIN, Minn., Aug. 7, 2024 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global-branded food company, today announced the release of its 18^th Global Impact Report. The report, available online, demonstrates the company's ongoing commitment to corporate responsibility and progress toward its environmental, social and governance goals in fiscal 2023.

"Responsible business practices have — and will always be — fundamental to our company," said Jim Snee, chairman of the board, president and chief executive officer of Hormel Foods. "Since our founding more than 130 years ago, we've been passionate about making the world a better place. We recognize our role in shaping a better future for generations to come and that our reach and scale enable us to make a significant impact and be a positive influence. Our Global Impact Report reflects where we are today and is a road map for where we aspire to be in the future."

Highlights of the company's 2023 progress include:

• Validating science-based targets by the Science Based Target Initiative (SBTi), formalizing the company's 1.5 degree Celsius-aligned 2030 emissions reduction targets for Scope 1, 2 and 3 emissions.
  
  
• Reducing product packaging by nearly 1.7 million pounds by optimizing packaging design and improving shipping efficiencies.
  
  
• Achieving the lowest recordable incident rate in our company's history and an 18% improvement from the prior year.
  
  
• Providing more than 200 dependents of U.S. team members with the opportunity of a free two-year college education at an eligible school of their choice through the company's groundbreaking tuition program Inspired Pathways.
  
  
• Contributing more than $12.5 million in cash and products to uplift communities, including $10 million dedicated to hunger relief efforts.
  
  
• Continuing to invest in the Hometown Food Security Project, a cross-sector coalition working to alleviate food insecurity in Mower County, Minnesota, home of our worldwide headquarters and largest production facility.

As a leader in the global food industry, we are committed to maintaining the highest standards in every aspect of our operations, and we continue to be recognized as a leading corporate citizen. We are proud of the many awards we received in 2023, including being named one of the World's Most Admired Companies by Fortune and one of America's Most Responsible Companies by Newsweek magazine.

The 2023 Hormel Foods Global Impact Report follows Global Reporting Initiative (GRI) Standards and follows the reporting guidance and principles of Sustainability Accounting Standards Board (SASB) Processed Foods and Meat, Poultry & Dairy Standards. Projects and initiatives featured in the report include information about the efforts of Hormel Foods that support the select United Nations Sustainable Development Goals. Content within this report has been reviewed and approved by the company's Board of Directors, Global Impact Executive Council, company leaders and internal experts who oversee relevant sustainability topics across the business.

To view the entire report, please visit www.hormelfoods.com/global-impact.

About Hormel Foods — Inspired People. Inspired Food.™
Hormel Foods Corporation (NYSE: HRL), based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue across more than 80 countries worldwide. Its brands include Planters^®, Skippy^®, SPAM^®, Hormel^® Natural Choice^®, Applegate^®, Justin's^®, Wholly^®, Hormel^® Black Label^®, Columbus^®, Jennie-O^® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report, one of America's most responsible companies by Newsweek, recognized on Fast Company's list of the 100 Best Workplaces for Innovators, received a perfect score of 100 on the 2023–24 Corporate Equality Index and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food.™ — to bring some of the world's most trusted and iconic brands to tables across the globe. For more information, visit hormelfoods.com.

Contact:	Media Relations
	Hormel Foods
	media@hormel.com

 

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SOURCE Hormel Foods Corporation

FAQ

What are Hormel Foods' (HRL) key achievements in its 2023 Global Impact Report?

Hormel Foods' key achievements include validating science-based emissions reduction targets, reducing product packaging by 1.7 million pounds, achieving the lowest recordable incident rate in company history, providing free college education to over 200 dependents of U.S. team members, and contributing $12.5 million to community upliftment.

How much did Hormel Foods (HRL) contribute to community upliftment in 2023?

Hormel Foods contributed more than $12.5 million in cash and products to uplift communities in 2023, including $10 million dedicated to hunger relief efforts.

What environmental progress did Hormel Foods (HRL) make in 2023?

Hormel Foods validated science-based targets for emissions reduction aligned with the 1.5°C scenario and reduced product packaging by nearly 1.7 million pounds through packaging design optimization and improved shipping efficiencies.

What educational initiative did Hormel Foods (HRL) implement for employees' dependents in 2023?

Hormel Foods provided more than 200 dependents of U.S. team members with the opportunity for a free two-year college education at an eligible school of their choice through the company's Inspired Pathways program.