Sustainability

In 2022, the Sustainability and ESG Committee, which is a sub-committee of the Executive Board, was chaired by Marel’s Director of Sustainability and Community Engagement. Marel’s corporate governance framework includes our Articles of Association; Guidelines on Corporate Governance issued by the Iceland Chamber of Commerce, Nasdaq Iceland and the Confederation of Icelandic Employers; and the Dutch Corporate Governance Code.

Marel follows the Nasdaq ESG reporting guidelines and has been a Nasdaq ESG transparency partner since 2019. These guidelines are mostly aligned with the standards set forth by the Global Reporting Initiative (GRI), the UN Global Compact, the Task Force on Climate-Related Financial Disclosures and the Value Reporting Foundation Sustainability Accounting Standards Board.

We disclose our sustainability performance in line with the principles and definitions detailed in the explanatory note of Marel’s 2022 sustainability disclosure. We believe that this is the most accurate reflection of Marel’s sustainability performance possible until the global sustainability reporting landscape transitions toward homogenization of the various standards.

We are guided by three pillars of responsibility: social, environmental and economic. Each is equally important and guides our decision-making processes at all levels.

Innovation is the primary way we make an impact and meaningfully contribute toward the SDGs. Our actions are focused around:

In 2017, Marel implemented a strict process framework with an accompanying scorecard to evaluate new products and to support the development of valuable and feasible technologies. Sustainability was a key consideration in this evaluation. In 2018, we integrated the scorecard into all new product development processes to help Marel’s innovation teams improve sustainability in the food value chain.

In September 2022, we updated the scorecard with enhanced circularity criteria for all new product development. Sustainability Scorecard 2.0 ensures that we are providing more innovative and sustainable products and solutions for our customers, which in turn supports them with their ESG ambitions.

Sustainability and circular design at every stage

The updated scorecard is now used throughout all phases of the product development process. This encourages continuous improvements on sustainability factors at every stage of the process.

Another major change is the addition of a new category—circular design—which prioritizes the circular use of materials through increased reuse, repair, refurbishment and remanufacture of products. The scoring criteria for circular design cover aspects such as circular material choices, modularity, upgradability, repairability and remote or condition-based maintenance.

Other categories in the scorecard cover food waste reduction, environmental impact, safety impact, animal wellbeing and other sustainable innovation.

In 2022, 100% (2021: 100%) of all innovation projects approved for further development were rated using the scorecard, beginning in the second stage, feasibility.

In 2022, we finalized a life cycle analysis (LCA) of our 10 core cross-industry solutions to assess their full carbon footprint from design through production until end-of-life. This analysis provides Marel’s innovation team with valuable insights to improve the environmental footprint of our solutions.

This process started in 2018, when we took our first steps toward understanding the full carbon footprint of our machinery during its lifetime. We began performing a meticulous study of a broad cross-section of our products, following internationally recognized methodologies to assess raw material extraction, manufacturing and processing, transportation, use-phase estimates as well as end-of-life, recycling and circularity.

Three key action points

The life cycle analysis identified three key actions that Marel can take to mitigate the environmental impact of our products:

1. Minimize energy and water consumption during the use-phase.

2. Ensure the durability and longevity of our products.

3. Reduce food processing waste.

Delivering carbon neutral solutions to our customers not only reduces emissions but also adds resilience to Marel’s offerings.

By performing life cycle analyses, Marel and customers gain valuable opportunities to align with the EU Taxonomy, a framework for sustainable investment.

Sustainability is a key pillar of Marel’s procurement strategy. Our goal is to collaborate with suppliers across the entire value chain to proactively reduce the societal and environmental impacts of developing, producing and delivering our solutions and spare parts.

Supplier engagement and due diligence are key components of this effort, and in 2022 we strengthened these processes with the support of a dedicated responsible sourcing team. We expect our key suppliers and development partners to be EcoVadis rated and collaborate with us as needed to define improvements. As part of our science-based targets initiative, we monitor purchased goods emissions and explore options with best-in-class suppliers for reducing emissions in high-emitting purchasing categories such as stainless steel.

We believe that knowledge sharing and communication about supply chain sustainability are crucial. To support this, we have increased the information available for our suppliers through online channels and meetings. For example, we organized a supplier day at our Slovakia location, during which we shared our vision for future growth. In addition, we implemented a procurement academy in 2022 to develop the knowledge and skills of our staff.

Marel encourages employees to report any potential violation of laws, safety or ethics. We strictly prohibit any form of retaliation against anyone who makes a report in good faith, and we protect the anonymity of whistleblowers. An up-to-date policy and digital whistleblowing platform are available to all employees, enabling them to report any suspicious activities formally and anonymously.