Environmental responsibility

Environmental responsibility

As the leading global supplier of high-tech food processing solutions, Marel is in a key position to promote environmentally responsible practices through one of the world’s most important value chains. We take this responsibility seriously and continuously seek out ways to minimize environmental impact and foster environmental protection in food processing. Innovation is at the core of this strategy.

We are passionate about creating new methods to transform yields and decrease waste in food production. We design advanced technology to minimize the use of precious resources such as energy and water, while promoting animal wellbeing, food safety and traceability. By working in partnership with our customers and thousands of suppliers across the globe, our improvements can scale up to considerable gains in sustainability throughout the entire value chain.

Commitment to a net-zero future

In 2022, the Science-Based Targets initiative (SBTi) validated Marel’s targets of lowering Scope 1 and 2 carbon emissions by 42% and Scope 3 carbon emissions by 25%.

The validation confirms that Marel’s targets are aligned with the goals of the Paris Agreement to limit the global temperature increase. The SBTi is dedicated to mobilizing companies worldwide to cut their emissions in half before 2030 and achieve net-zero emissions before 2050.

Lowering our carbon footprint

We are committed to showing progress toward our SBTi targets. New and ongoing decarbonization initiatives assisted in lowering Marel’s Scope 1 and 2 carbon footprint by 19% and Scope 3 by 11% from 2021 to 2022. Total market-based Scope 2 carbon emissions saw a significant decrease of 43% in 2022 from 2021, driven largely by Marel’s Green Electricity Procurement policy. We expanded our carbon footprint disclosure in 2022 by reporting on two large Scope 3 categories: purchased goods and services, and use of sold products. This gives Marel and relevant stakeholders a better understanding of Marel’s environmental impact on its value chain.

Key carbon reduction projects throughout 2022 supported us in further improving our emission intensity results, while revenues grew by 26% to EUR 1,709 million.

Key 2022 carbon reduction projects

We have rolled out the first round of Marel’s decarbonization plan, which focuses on three main areas:

1. Shifting to renewable or green energy where possible

2. Engaging with our supply chain through our responsible sourcing program

3. Designing low-carbon solutions and systems with embedded circularity

The aim of this approach is to future-proof Marel’s growth, strengthen our competitive advantage and support our customers in becoming more sustainable.

Case study:

Minimizing food waste using the IRIS Fillet Inspector

Marel’s IRIS Fillet Inspector (IRIS FI) is a prime example of how automated quality assessments can be combined with minimizing food waste and optimizing yield. Using an advanced camera system, the IRIS FI can detect defects such as remaining tendons, fat and blood clots. By removing human bias and manual touch from the process, unwanted products can be filtered out or redirected to different processing streams with great accuracy and efficiency. With the IRIS FI, quality-dependent decisions are based on facts, not estimates. This allows raw material to be utilized to the maximum and put into exactly its most profitable form.

Combined with Innova Production Distribution Software, the IRIS FI camera and the software work together in assigning quality criteria to the fillets according to the customer’s requirements. This information can be used in real-time for decision-making for downstream distribution. This could be achieved, for example, by using Marel’s Fillet Distributor solution, which includes intelligent servo-operated conveyor belts that redirect products of different qualities to different processing streams. The system could be arranged with an upper belt leading to a RoboBatcher or another tray packing process, while a lower belt could lead to a marination, shwarma strip or schnitzel processing line.

Another purpose for collecting data in this way is to assess the performance of the plant’s trimming process. If trimming is performed too intensely, too much valuable meat will be downgraded. To prevent this, trimmers can be trained based on data, and the results of such training can be verified by IRIS FI.

In this way, processors can save an incredible amount of valuable meat on an annual basis, minimizing food waste and optimizing yield.

Energy consumption

In 2021, Marel implemented the Green Electricity Procurement policy, which we approved in 2020. This policy focuses on the preferred sourcing of green energy for electricity as part of our sustainability program. By 2026, we aim to power at least 85% of our manufacturing facilities on renewable electricity. We made considerable progress in 2022, increasing our renewable electricity share to 81% (2021: 61%) for manufacturing locations.

Additionally, we decreased energy consumption by 14%, amounting to a total energy consumption of 62.6 GWH in 2022, compared to 73.2 GWH in 2021. The energy intensity per FTE improved to 8.1 MWH, compared to 10.4 MWH per FTE in 2021.

All Marel locations

Share of renewable electricity in 2022

Manufacturing facilities only

Share of renewable electricity in 2022

Power Aim

Renewable electricity target

Improving resource efficiency

We help reduce food waste

We make the most of cutting-edge technology such as digitization, automation and robotics to decrease food waste. Yield increase and waste elimination are a core part of our success, and we strive to be better by constantly improving the accuracy, efficiency, safety and traceability of food processing through smart solutions.

Minimizing our waste footprint

We closely monitor our waste streams to understand the impact of waste management on our operations and the environment. By collecting data and conducting full-scale analyses of our waste streams, we can gain an overview of the size and composition of our waste footprint. This enables us to improve how we digitalize and advance our waste management efficiency, such as monitoring and improving how much of our total global waste volume we recycle or reuse. All of our major manufacturing locations report on standard waste management metrics.

Efficient use of water during food processing

Food processing requires a lot of water, both for the processing itself and for cleaning equipment and production facilities. Inevitably, this generates wastewater, which must be treated safely and effectively to prevent harm to human health and the environment. Our team of water treatment experts works with food processors globally to optimize their water usage. Marel Water Treatment offers standard and customized systems to treat wastewater so thoroughly that it can be discharged to surface water or reused in a variety of processes. In 2022, we published the water usage numbers for our manufacturing footprint for the first time.

Sustainable housing

We integrate sustainability into renovation and greenfield projects for Marel’s manufacturing sites, demo centers, offices, warehouses and combined sites. We are building a distribution center in Eindhoven that will be energy neutral, by using solar power. It is designed in line with WELL ambition, focusing on the health and wellbeing of its users, and will be BREEAM certified —a certification method for sustainable built environments. In addition, it will be TAPA compliant, adhering to security standards for the supply chain. We are also building a warehouse that will be energy neutral, by using no gas, in Boxmeer, the Netherlands.

Our office renovation projects aim to reduce carbon emissions and energy use wherever possible by focusing on environmentally friendly materials and selecting locations that can support low emission transport modes and energy utilization.

Transportation

As part of our supplier engagement, we have started monitoring carbon dioxide emissions from product related purchased goods as well as assessing the emission impact of different transportation modes. This supports Marel’s journey in reducing emissions related to purchased goods.

Animal wellbeing is our priority

Because we are in the food processing business, animal wellbeing is high on our agenda. We take this responsibility seriously and are determined to lead the way by developing solutions that promote the highest standards of animal wellbeing. This is reflected in our Sustainability Scorecard 2.0, which emphasizes the importance of animal wellbeing in ensuring both environmental and economic responsibility throughout the product life cycle.

Over the years, we have introduced a number of innovative solutions that pay careful attention to animal wellbeing.

Case study:

Marel joins European research project

Marel is a major participant in the European mEATquality research project, which aims to improve the quality of meat on consumers’ plates. By collecting data from farm to fork, the project seeks to establish a correlation between animal wellbeing on the farm and consumer perceptions of meat quality.

The mEATquality project kicked off in January 2022 and is co-ordinated by Wageningen University & Research. It was awarded EUR 6.5 million of EU funding within the framework of the Horizon 2020 program and has several partners, including retailer Carrefour and poultry breeder Hubbard.

Marel participates as an equipment manufacturer to supply the technology needed, such as Innova Food Processing Software and inline sensor technology. These solutions make it possible to evaluate the level of meat quality that comes to the processing plant and makes it traceable back to the animal feed.

Consumers expect high-quality meat from animals reared on farms providing a high standard of animal wellbeing. The mEATquality project examines if this expectation is justified by collecting data on all kinds of farms, conventional, organic and free-range, and conducting consumer expectation studies and controlled experiments.

The project aims to support the development of techniques to assess the sustainability of livestock production, such as a quick scan for life cycle analysis, determining animal wellbeing through stress hormones in feathers and hair, and an automated quality assessment that can establish whether the origin of the meat can be fully traced.

Through our involvement in the mEATquality project, we show our dedication to working toward a more ethical and transparent meat industry.

GHG emissions

Emissions category (in tCO2e) 2022 2021 Change
year-on-year
Scope 1: heat - natural gas 3,193 3,252 -2%
Scope 1: company cars 4,121 4,311 -4%
Scope 2: heat - district heating 260 267 -3%
Scope 2: electricity (market-based) 3,990 7,061 -43%
Scope 2: electricity (location-based) 7,333 8,487 -14%
Scope 3: waste 289 308 -6%
Scope 3: business travel by air 6,341 3,430 85%
Scope 3: purchased goods and services 81,014 109,529 -26%
Scope 3: use of sold products 294,244 317,534 -7%
Total tCO2e 393,452 445,691 -12%

 

Carbon emission intensity

  2022 2021 Change
year-on-year
tCO2e per average FTE 51.1 63.0 -19%
tCO2e per EUR 1,000 of revenues 0.25 0.33 -24%

 

Note: Please see the ESG Explanatory Note and Nasdaq ESG metrics for further details. Greenhouse gas emissions were calculated using the IEA emission factors. Scope 3 for 2021 has been adjusted based on expanded scope 3 categories validated by the Science Based Targets initiative.

 

Scope 1:

Includes all direct GHG emissions that occur from sources directly controlled by the company. Marel’s Scope 1 is composed of the emissions from the combustion of natural gas in controlled boilers and the emissions from fuel combustion in vehicles operated by Marel, such as company cars. Leased vehicles are operational leases and are reported under Scope 1 based on their tank-to-wheel emissions.

Scope 2:

Includes all indirect GHG emissions that are associated with the purchase of electricity, steam, heat or cooling. For Marel, Scope 2 is composed of the emissions resulting from generating electricity purchased or used by Marel in offices and manufacturing facilities. Additionally, the emissions resulting from generating district heating is included in Scope 2.

Scope 3:

Includes all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. Marel currently reports on business travel by air (downstream) and waste generated in operations (downstream) from its manufacturing facilities. Please see the ESG Explanatory Note for further details.