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Marel Environmental & Social Information 2023
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Environmental & Social Information
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TRANSFORMING FOOD PROCESSING
marel
2022 ESG Report
8 February 2022
Contents
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Table of contents
3 Foreword
5 Sustainability at Marel
11 Marel 2026 Sustainability Program
16 Environmental Responsibility
24 Social Responsibility
31 Responsible Governance
Foreword
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Foreword
2022 the year in review
Thorsteinn Kári Jónsson
Director of Sustainability and Community Engagement
For 40 years, Marel has had a simple though ambitious mission, to transform the way food is processed. At Marel, we understand we have an important role to fulfill when it comes to supporting our customers in using valuable resources to feed the world. We are also aware that we ourselves have a leading responsibility for the change we want to see in our industry and in the markets where we operate.
In order to enable the transformation of the food industry towards becoming more sustainable, Marel needs to operate in unison with all key stakeholders. Our stakeholders are increasingly aware of the role they play in the sustainable development of the food value chain and Marel aims to engage and support them in order for the whole industry to move in the right direction. The common goal is to meet the needs of the current generation while simultaneously ensuring that future generations will have access to affordable food that is produced in a sustainable way, thereby creating value, prosperity and healthy economic growth.
The last year was a year of changes in the world of sustainability and ESG. New reporting standards are no longer discussion points and have become a tangible reality. Demands for transparency and clarity when it comes to demonstrating the impact of businesses has never been greater and showing accountability in the entire supply chain has become a clear requirement from many stakeholders.
2022 brought Marel many accomplishments on the sustainability front with highlights including having our science-based climate targets validated, improving our climate risk- and opportunity analysis through our TCFD reporting, incentivizing even more employees based on ESG performance, launching our one-of-a-kind sustainability innovation scorecard 2.0 and starting to work on our ambitious 2026 Sustainability Program.
Marel's commitment to sustainability and ESG over the past years has provided a strong backbone for meeting the increased demands and expectations of our stakeholders in the last year. We see a number of opportunities arising in the next few years as upcoming regulations will generate more structure around ESG reporting, and the impressive sustainability plans from our customers come to fruition. Being able to further support our customers in understanding and realizing their environmental and social impact as well as sustainability related opportunities and risks is something Marel sees as an essential part of servicing the food industry in the future.
Pioneering new solutions around a more sustainable future in the food industry continues to be at the heart of Marel's operations and product development. With our 8,000+ employees in more than 30 countries, we are more than ready and look forward to embracing the challenges and opportunities ahead together with our customers, suppliers and broader stakeholders.
2022 ESG Report
Foreword
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Our vision is of a world where quality food is produced sustainably and affordably
2022 ESG Report
Sustainability at Marel
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Sustainability at Marel
Marel has been improving its sustainability impact from day one, with special emphasis on improving its environmental, social, and corporate governance (ESG) profile since 2015.
Working toward becoming a part of the solution, we are setting leading standards in the food processing industry for our customers, employees, shareholders, suppliers, strategic partners and consumers.
Sustainability at Marel
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Sustainability at Marel
Marel is guided by three pillars of responsibility: social, environmental and economic.
Each is equally important and guides our decision-making processes at all levels.
Corporate governance
- We are committed to recognize general principles aimed at ensuring good corporate governance.
- Our corporate governance consists of a framework of principles and rules, including Marel's 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, as well as the applicable legislation concerning public companies and corporate practices.
Social responsibility
- We take care of our people, our partners and our customers.
- We provide a safe and respectful workplace that fosters diversity and inclusion. We come from a multitude of cultural, geographical, professional, and personal backgrounds, and we respect and encourage this diversity.
- Our employees have opportunities for further education and career development.
- As a global company, we reach out to communities where we operate to seek local insights and collaboration. Together, we forge the best solutions to benefit everyone.
- We do not tolerate human rights violations.
Environmental responsibility
- Throughout our value chain, we promote the most efficient use of resources to minimize environmental impact. Innovation is at the core of this strategy. We are passionate about creating new methods to improve yields and decrease waste in food production.
- As the leading global supplier of high-tech food processing solutions, our advancements can add up to tremendous gains in sustainability.
- We reduce the use of scarce resources such as energy and water, while promoting animal welfare, food safety and traceability.
Economic responsibility
- Our mission is to generate value for our partners and shareholders through fair trade practices. We promote long-term profitability and good business practices along our entire value chain.
- Transparency, innovation and collaboration are key. We comply with international laws, anti-corruption rules and local regulations, and encourage our partners, customers and suppliers to do so too.
- We believe that all parties should aim for having a positive economic impact in their society.
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Sustainability at Marel
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Marel is setting leading standards in the food processing industry
Marel has steadily been improving its ESG profile since 2015. We are working toward becoming a part of the solution.
2022 ESG Report
Sustainability at Marel
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Sustainability at the core of innovation at Marel
Marel is committed to net zero emissions by 2040. Innovation drives increased sustainability and enables better ways of working across the equipment life cycle to help us reach this goal.
| Digitalization | New scorecard and LCAs | Extended reality (XR) technology |
|---|---|---|
| • Marel customers are able to access data-driven insights to optimize equipment performance, thereby minimizing wear and tear while improving operating performance | ||
| • Remote service and support capabilities improve customer interactions, enabling predictive maintenance and increased lifetime of solutions | • Marel's sustainability scorecard enables our innovation team to address sustainability from all angles | |
| • The scorecard also analyzes strengths and continuous improvement opportunities | ||
| • Life Cycle Analysis (LCA) measures the carbon footprint of production, assembly and shipping, and usage at the customer's site | • Marel designs, tests and adjusts developments with the use of XR including virtual and augmented reality, thereby bypassing the use of physical materials | |
| • Virtual reality (VR) and augmented reality have transformed how Marel interacts with customers, reduces costs, and minimizes travelling | ||
| • VR demonstrations make remote installation, training and service interactions possible |
2022 ESG Report
Sustainability at Marel
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Portfolio of processing solutions enriched in 2022
In 2022, Marel delivered several solutions focused on improving sustainability by increasing yield, improving performance and agility, and using less natural resources.
FleXicut Tres
Precision pinbone removal and flexible portioning.
- Optimized yield
- Accurate pinbone removal
I-Cut 56
The new and improved I-Cut 56 for the meat industry.
- Outstanding precision
- High-speed portion cutting
IMPAQT
Intelligence to analyze and optimize primary processing in poultry.
- Reveals real-time losses
- Identifies the cause
FilleXia
Automated tilapia filleting delivering consistency and accuracy.
- Minimum manual handling
- Improved food safety
More market-leading solutions driving sustainability for our customers.
I-CUT 122 with RoboBatcher
- Intelligent fillet batching
- Optimized yield
- Minimized waste
Atlas
- State of the art live bird handling system
- Reduces CO2 emissions by optimizing logistics
- Improves animal wellbeing and efficiency
Streamline
- Intelligent trimming concept
- Reduces product handling
- Improves throughput, yield and quality
Flexicut
- Improving yield and quality
- Saves time and increases efficiency
- Automatic pinbone removal
2022 ESG Report
Sustainability at Marel
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2022 ESG highlights
Marel accomplished many great things in 2022, including getting it's science based targets validated as well as a substantial decrease in CO2 emissions and healthy implementation of first Sustainability Program
Notes: 1 Sustainability program 2022-2026. Includes Scope 1, Scope 2 and business air travel from Scope 3 emission intensity from a 2019 base year.
2022 ESG Report
Marel 2026 Sustainability Program
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Marel 2026 sustainability program
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Marel 2026 Sustainability Program
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Marel 2026 sustainability program
In 2022 Marel started implementing its 2026 medium-term sustainability program.
The goal of the program is to ensure Marel's ability to sustainably maintain resources and relationships with, and manage its dependencies and impacts within, its whole ecosystem over the short, medium and long term, while simultaneously harmonizing with its 2026 growth ambitions.
Environmental targets
20% carbon emissions¹ reduction by 2026
Increase waste recycling to 90% by 2026
Powering >85% manufacturing facilities on renewable electricity by 2026
Social targets
>25% gender diversity in management levels L1-L3
All managers create annual engagement improvement action plans with their teams²
<0.5 total recordable incident rate
Governance targets
Increase proportion of ESG incentivized pay throughout the organization
Continuously improve supply chain sustainability³
All new innovations need to improve at least one sustainability aspect
Marel's commitment to a sustainable future
- Delivering on science-based target commitment by 2030
- Net zero emissions by 2040
- Focused on supporting three UN Sustainable Development Goals:
Notes: ¹ Includes Scope 1, Scope 2 and business air travel from Scope 3 emission intensity. Environmental targets are set against base year 2019. ² As measured by Gallup. ³ As measured by EcoVadis.
2022 ESG Report
Marel 2026 Sustainability Program
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ESG materiality matrix
Top15 ESG topics based on a comprehensive stakeholder materiality analysis¹.
| Rank | Material topics |
|---|---|
| 01 | Food waste reduction |
| 02 | Traceability & food safety |
| 03 | Animal wellbeing |
| 04 | Circular products & solutions |
| 05 | Environmental & safety impact |
| 06 | Emission, energy use & water |
| 07 | Sustainable protein |
| 08 | Sustainable innovation |
| 09 | Localized customer service |
| 10 | Responsible supply chain |
| 11 | Occupational health & safety |
| 12 | Talent attraction and retention |
| 13 | Flexibility & economic performance |
| 14 | Compliance & risk management |
| 15 | Diversity & inclusion |
Post-Covid, we expect to see a higher focus on climate change, supply chain disruptions, diversity & inclusion and talent retention & acquisition.
We aim to engage stakeholders in 2023 to understand the impact these issues may have. The results will be communicated alongside Marel’s full-year 2023 Consolidated Financial Statements in February 2024.
Notes: ¹Company information. Stakeholder materiality analysis conducted among more than 160 individual stakeholders in 2020. Conclusions on the top15 ESG topics are still relevant for Marel (x-axis) and its stakeholders (y-axis).
2022 ESG Report
Marel 2026 Sustainability Program
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Fully committed to corporate sustainability reporting
Marel's key stakeholders are increasingly interested in ESG data disclosure and transparency.
Early Adapter
Enhanced Communication on Progress
DISCLOSURE INSIGHT ACTION
TCFD
THIS FORCE
CLINICAL-RELATED
FINANCIAL
DISCLOSURES
2022 Sustainability disclosure
2022 Sustainability Report
2022 Nasdaq ESG metrics
2022 TCFD Status Report
2022 ESG Explanatory Note
2022 Corporate Governance Statement
Sustainability website
Online
2022 ESG Report
Environmental responsibility
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Environmental Responsibility
Throughout the value chain, Marel encourages and promotes the most efficient use of resources to minimize environmental impact and prioritize environmental protection in food processing. Innovation is at the core of this strategy.
We're passionate about creating new methods to improve yields and decrease waste in food production. We reduce the use of scarce resources such as energy and water, while promoting animal welfare, food safety and traceability.
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Environmental responsibility
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Measuring Marel's sustainability performance
Environmental
| Focused on | 2026 target^{1} | 2030 target^{2} | 2040 target | Our progress made in 2022 |
|---|---|---|---|---|
| Reach net zero carbon emissions | 20% carbon emissions^{1} reductions | Reduce absolute Scope 1 and 2 GHG emissions by 42% | ||
| Reduce absolute Scope 3 GHG emissions by 25% | Net zero commitment (across the value chain) | Reduction of 34% vs 2019 baseline | ||
| Absolute reduction of 12% vs 2021 baseline | ||||
| Full carbon emission Scope 3 GHG mapping | ||||
| Validated science-based target | ||||
| Waste reduction | Increase waste recycling to 90% | Recycling of waste at 71% | ||
| Use of renewable electricity | Powering >85% manufacturing facilities on renewable electricity | Powering 81% of manufacturing facilities on renewable electricity (2021: 61%) |
Notes: 1 Sustainability program 2022-2026, Includes Scope 1, Scope 2 and business air travel from Scope 3 emission intensity from a 2019 base year. 2 Validated science-based target, from a 2021 base year.
2022 ESG Report
Environmental responsibility
Marel
Marel's ambitious 2030 decarbonization target approved by SBTi
Setting a science-based target defines a path to future-proof Marel's growth, strengthening our competitive advantage while supporting our customers to be more sustainable.
Marel is committed to become net zero by 2040 and has been reporting on climate risk in accordance with TCFD guidelines since 2021
Marel has validated¹ science-based targets committing to reduce:
- absolute Scope 1 and 2 GHG emissions 42% by 2030 from a 2021 base year
- absolute Scope 3 GHG emissions 25% by 2030 from a 2021 base year
The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.
Setting a science-based target is a defined path to future-proof Marel's growth, strengthening our competitive advantage while supporting our customers to be more sustainable. The food industry faces many global challenges, including climate change. Food processors require innovative solutions that meet the needs of present generations without compromising the future of coming generations.
Notes: ¹Validated by the Science Based Target initiative in November 2022. Detailed announcement can be found here [include press release link]
2022 ESG Report
Environmental responsibility
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Marel's carbon footprint
| GHG emissions^{1} | |||
|---|---|---|---|
| Emissions category (in tCO_{2}e) | 2022 | 2021 | Δ YoY in % |
| 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 tCO_{2}e | 393,452 | 445,691 | -12% |
| Carbon emission intensity | |||
| --- | --- | --- | --- |
| tCO_{2}e per average FTE | 51.1 | 63.0 | -19% |
| tCO_{2}e per EUR 1,000 of revenues | 0.25 | 0.33 | -24% |
| Energy consumption | |||
| --- | --- | --- | --- |
| In GWh | 2022 | 2021 | Δ YoY in % |
| Total energy consumption (scope 1+2) | 62.61 | 73.18 | -14% |
| Electricity consumption | 30.26 | 35.56 | -15% |
| There of from renewable energy | 21.59 | 18.70 | 15% |
| There of from non-renewable energy | 8.67 | 16.86 | -49% |
| Natural gas | 17.50 | 17.75 | -1% |
| Heat – district heating | 1.58 | 1.62 | -2% |
| Fuel | 13.27 | 18.25 | -27% |
| Waste | |||
| --- | --- | --- | --- |
| Total waste generated (in tonnes) | 4,651.6 | 5,047.5 | -8% |
| There of recycled | 3,299.3 | 3,326.2 | -1% |
| Reporting manufacturing sites covered | 15 | 15 | n/a |
| Water | |||
| --- | --- | --- | --- |
| Total water consumption (in m³) | 40,190 | 43,659 | -8% |
| Reporting sites covered | 15 | 15 | n/a |
2022 ESG Report
Notes: 1 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.
Environmental responsibility
Marel
Creating a sustainable supply chain
Every decision we make from procurement to distribution can have a global impact.
Marel is committed to a responsible procurement strategy. This includes creating a sustainable supply chain for our own manufacturing locations and external supply base. Marel's sizeable procurement spending and our work with thousands of suppliers in our supply chain, mean we have a considerable positive impact.
Supplier engagement and due diligence are key to our sustainable procurement program. During 2022 we established a Responsible Sourcing team to strengthen our supplier engagement processes. We expect our key suppliers and development partners to be EcoVadis rated, and to work with Marel to define improvements that can be made to reduce greenhouse gas emissions from our products during production, use, and end-of-life.
We have insight in our purchased goods emissions and are investigating options with best-in-class suppliers to reduce emissions in categories like stainless steel.
A company's supply chain plays a critical role in its environmental, social, and governance journey.
In September 2022, we organized a supplier day at Marel in Slovakia to share our vision for growth and connect this vision with suppliers' development strategies. We ask all of our suppliers to join us on our journey.
Read more →
2022 ESG Report
Environmental responsibility
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Climate risk and opportunity reporting
Marel's 2022 climate-related financial disclosures (TCFD) status update.
Marel committed to integrating the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in 2020 and started its climate risk and opportunity reporting in 2021. As a founding member of the Nordic CEOs for a Sustainable Future, Marel supports the implementation of the recommendations by the TCFD.
Now in its second year, Marel has built greater awareness internally and among its stakeholders, to understand the impact of climate on the company, its operations, customers and the overall value chain.
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Environmental responsibility
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Update on Marel's TCFD journey
Marel is committed to climate-related risk reporting in line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
| 2022 achievements | Short-term priorities | Longer-term goals | |
|---|---|---|---|
| Governance | • Increased internal awareness on climate related risks and opportunities throughout the organization, engaging with internal and external stakeholders. This includes half-yearly board strategy sessions, audit committee briefings, quarterly business review meetings with the Executive Board and global training sessions for ESG KPI owners. | ||
| • Close collaboration with Internal Audit on further aligning climate risk processes and non-financial disclosure | • Increased structural attention on climate related impacts within the Board of Directors including structured decision-making and follow up on identified climate issues | • Further integrate the impact of climate change in corporate governance and oversight | |
| Strategy | • Revisited climate scenarios and models used in 2021 to test for relevance and latest climate science recommendations | ||
| • Analyzed physical risks for the first time | |||
| • Further strengthened the process and ESG data quality by moving to an internal quarterly reporting process for ESG | |||
| • Fully mapped out all material categories under scope 3 | • Further assess potential business implications of climate related risks and opportunities on Marel's operations | ||
| • Further align the findings and recommendations from climate related risks and opportunities with the business strategy and financial planning | • Further integrate climate impact into Marel's strategy and operations by improving the view on climate risks and opportunities and aiming to minimize climate impact with the majority of Marel's equipment solutions | ||
| Risk management | • Sustainability is one of five risk categories at Marel | ||
| • Identified and prioritized the most material risks and opportunities to future-proof Marel | |||
| • Strengthened process around supplier engagement including environmental compliance supported by a new Responsible Sourcing team | • Integrate climate risk into Marel's overall risk framework | ||
| • Continue initial analysis on climate related risk causes and opportunity triggers with the aim to externally disclose the most material ones | • Further integrate climate risk into the overall risk management framework | ||
| Metric & Targets | • Launch of first Sustainability Program, including three environmental 2026 targets related to: carbon emissions, recycling of waste and the use of renewable electricity | ||
| • 2030 decarbonization near-term targets for scope 1, 2, and 3 approved by SBTi in November 2022 | |||
| • Extended scope of the innovation scorecard to further elevate sustainability in new product developments | • Embed periodic reporting on material risks and opportunities | ||
| • Improve disclosure on Marel's Scope 3 greenhouse gas emissions (GHG) and targets to reduce GHG | |||
| • Further improve Marel's innovation scorecard to elevate sustainability in new developments | • Disclose and report on forward-looking climate related metrics and actual performance against goals |
Notes: Marel's 2022 climate-related report will be published alongside the 2022 ESG presentation on 8 February 2023 (add link).
2022 ESG Report
Environmental responsibility
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Material opportunities and risks from climate change
Selected risk causes and opportunity triggers deemed most relevant for Marel
During 2021, an assessment exercise was conducted based on the long-list TCFD model whereby 25 risk causes and 17 opportunity triggers were examined in light of likelihood and impact. Those risk causes and opportunity triggers were then further assessed in a double heat map.
Transition risks include policy and legal risks, risks arising from changing demand, availability of resources, and shift in consumer preferences, among others. Marel has also identified certain physical acute and chronic risks from rising temperatures and impacts on marine ecosystems.
Potential financial impact both positive and negative cannot yet be fully assessed and is likely to be integrated into Marel's day-to-day operations. Mitigating actions are being assessed and will be used going forward to align with Marel's business strategy to minimize negative effects and maximize the opportunities, where possible from climate change on Marel's operations.
| Identifier | Primary climate-related risk driver | Time horizon¹ | Likelihood | Magnitude of impact | Likely potential financial impact | |||
|---|---|---|---|---|---|---|---|---|
| 1.5°C scenario | 2.5°C scenario | |||||||
| Policy and Legal (Transition risk) | Emerging regulations on limitation of greenhouse gas emissions | Short-term | Likely | High | Low | Increased operating/compliance costs | ||
| Market (Transition risk) | Increased cost of raw materials | Short-term | Likely | High | Medium | Reduced profitability | ||
| Chronic (Physical risk) | Rising temperature | Long-term | Likely | Low | High | Increased operating costs | ||
| Energy sources (Opportunity) | Use of new technologies | Medium-term | Very likely | High | Medium | Increased revenues and increased profits | ||
| Products and services (Opportunity) | Development of new products or services through R&D and innovation | Medium-term | Very likely | High | Medium | Increased revenues and increased profitability | ||
| Market (Opportunity) | Access to new markets | Medium-term | Likely | High | Medium | Higher revenues |
2022 ESG Report
Notes: Company information. ¹ Short-term < 3yrs, Medium-term 3-10yrs, Long-term >10yrs. ² Potential financial impact both positive and negative cannot yet be fully assessed and is likely to be integrated into Marel's day-to-day operations. Mitigating actions are being assessed and will be used going forward to align with Marel's business strategy to minimize negative effects and maximize the opportunities, where possible from climate change on Marel's operations.
Social responsibility
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Social Responsibility
Corporate social responsibility (CSR) is essential element of our company culture and we make commitment to being socially accountable to ourselves, employees, contractors, customers and visitors.
We provide a safe and respectful workplace that fosters diversity, inclusion and belonging. Our employees have opportunities for further education and career development.
We apply high standards at every level and do not tolerate human rights violations under any circumstances.
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Social responsibility
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Measuring Marel's sustainability performance
| Social | ||
|---|---|---|
| Focused on | 2026 target¹ | Our progress made in 2022 |
| Diverse and inclusive culture | >25% gender diversity in management levels L1-L3 | As of year-end 2022 females represent 20.1% of the top 3 management levels vs 2019 baseline of 19.5% Committed to implement parental leave for Marel employees globally in 2023 (4 months' pay for primary caregiver and 1 month for secondary caregiver) |
| Engaged teams | All managers create annual engagement improvement action plans with their teams² | 91% of all managers created engagement action plans with their teams (2021: 90%) |
| Health and safety | <0.5 total recordable incident rate | Total recordable incident rate at 0.67 (2021: 0.78) |
Notes: ¹ Sustainability program 2022-2026. ² As measured by Gallup.
2022 ESG Report
Marel
Embedding Diversity and Inclusion
Since appointing our first Global Diversity and Inclusion (D&I) specialist in early 2021, a culture of inclusion is building within Marel.
To embed D&I in our company culture, it was decided to do more than offer simple training. Instead, almost 40 employees from all around the globe stepped forward and became D&I champions and complete a two-day workshop. We now have the foundation to implement and follow through with D&I initiatives supported by a diverse group of enthusiastic liaisons.
The first initiative is inviting all employees to a course on creating a culture of inclusion. This one-hour interactive talk is facilitated by Marel's D&I champions. The course is offered online and in person in 13 languages, demonstrating our dedication to inclusivity.
In addition to introducing the main themes of inclusive workplaces and pitfalls to watch, the course also gives employees an opportunity to anonymously share their feelings, ideas, and questions on the topic. This information is vital to our D&I work going forward.
Approximately 52% of Marel employees have taken part in the course by the end of 2022, and we aim to build on that number in the future.
We are proud to share that this initiative, led by Global D&I Specialist Charlotte Biering, attracted the attention of Diversify Nordics Summit, where Charlotte won the Diversity's Trailblazer in the Blaze Inclusion Awards in 2022.
2022 ESG Report
Marel
ZERO Harm
Make it personal
In Marel, we have a clear Health, Safety, and Environment (HSE) goal: zero harm to our health, people, and environment. That means taking care of ourselves, our colleagues, customers, communities, and the world around us.
Since launching the Zero Harm initiative in February 2021, we have launched activities to raise awareness of HSE within Marel. Among others, this includes training, guidance, and learning material for staying safe while working at customer sites and in field service.
2022 ESG Report
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HSE Performance explained
Points to note for 2022
- Total Reportable Injuries are being reduced year on year due to continued focus on root cause analysis and hazard reporting
- Near Miss events are reducing due to proactive activities and reporting
- Hazard Observations increasing year-on-year, allowing proactive action to be taken
| HSE Statistics | 2022 | 2021 | Δ YoY in % |
|---|---|---|---|
| Number of accidents with fatalities or severe injuries | 0 | 0 | 0% |
| Number of reportable accidents resulting in absence from work | 34 | 35 | -2.9% |
| Number of reportable accidents resulting in restricted work or medical treatment | 19 | 21 | -9.5% |
| Number of total recordable injuries (TRI) | 53 | 56 | -5.4% |
| Total recordable incidents rate (TRI based per 100 employees) | 0.67 | 0.78 | -14.1% |
| Number of accidents requiring first aid | 194 | 193 | 0.5% |
| Number of total accidents | 247 | 249 | -0.8% |
| Number of near miss incidents | 124 | 172 | -27.9% |
| Number of environmental incidents | 0 | 0 | 0% |
| Number of proactive hazard observations | 4,515 | 3,527 | 28% |
Notable improvement programs
- Field Service initiative including training, guidance, and learning material for safety on customer sites
- Three-minute animation published to inform all employees about our Journey to Zero Harm
- Safety Walks guides created to enable more productive HSE conversations between leaders and teams
- Team tools created to allow teams to focus on the life-saving rules that apply directly to them
Mental health was a particular focus for 2022. A manager guide and team toolkit has been created so managers and teams can identify the factors that contribute to mental health concerns.
2022 ESG Report
Social responsibility
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Building our Employer Brand together
Feeling every person counts? Our people do
At Marel a global employer brand is important, supported by a strong employer value proposition to help attract and retain diverse world class talent. In 2021, the work on Marel's Employer Brand was initiated, which can be seen through all People & Culture processes and offerings. The employee is at the center of everything in Marel and the Employer Brand is intended to reflect that.
To create our Employer Branding promise, we put together focus groups with key stakeholders from across different geographies, business entities and functions. To ensure diversity, employees representing Marel in terms of age, nationality, gender, seniority, function, business units and regions was taken into account. The result is the Employer Brand promise, which reflects the fact that at Marel we have an international team of problem solvers, who feed off each other's drive for creating leading solutions and transforming the future of food. In over 30 different countries, we rise to the challenge together.
The promise was tested with 350+ employees within Marel, both through surveys and test of the narrative and taglines of the final concept. The new people vision guides interactions with employees, and the employee is always at the center.
In everything we do, we ask ourselves WHY and HOW it adds value to the employee. This is the framework for Employer Branding in People & Culture.
2022 ESG Report
Social responsibility
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Launch of Marel Campus
Today's skills won't meet tomorrow's needs.
As our industry rapidly evolves, the skill landscape in our company is changing as well. Employees need support to develop new and different skills. It is estimated that 30% of the skills we use now will no longer be needed by 2026.
To prepare Marel's people for their current and future skills we launched the Marel Campus.
The Marel Campus is an inspiring place which provides access to all kinds of learning content and opportunities, such as technical courses, video and conference platforms and learning environments. It is the place to go to, to get the right knowledge, learn new skills and sharpen leadership.
Digital tools and platforms are brought together and increases access to learning for every Marel employee.
In the Marel Campus everyone has unlimited access to all kind of skill development. Everyone can learn whatever they want whenever they want. Next to this the manager can provide the employee with a more specific learning path. Learning paths are structured, skill based and easily scalable. This is to ensure the skilled preparedness of our people.
Learning is for everyone in our organization. This increases motivation and impact!
A quote of one of Marel's people: "I love working at Marel because I know that my job is important and my ideas matter". (Adel Benedikt Sayari, assembler Marel Iceland)
We developed a roadmap 2022 – 2026 to work towards a high-tech ecosystem where Marel's people create the technologies and the business of tomorrow.
2022 ESG Report
Responsible governance
Marel
Responsible Governance
Responsible governance is set with a clear objective of ingraining environmental, social, and governance (ESG) guidelines into all of Marel's business planning and operations.
Throughout 2022 the company continued to increase internal awareness on ESG related risks and opportunities as well as performance management throughout the organization, engaging actively and in an organized way with internal and external stakeholders.
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Responsible governance
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Measuring Marel's sustainability performance
Governance
| Focused on | 2026 target¹ | Our progress made in 2022 |
|---|---|---|
| Accountability | Increase proportion of ESG incentivized pay throughout the organization | 30% of employees have an ESG incentivized pay component (started in 2021) |
| Sustainability excellence | Continuously improve supply chain sustainability² | Marel received a bronze rating in the EcoVadis sustainability assessment, scoring 55 points against a sector average of 44 points for 2022 (2021: 51/100). Efforts to make our supply chain more sustainable have brought us into the 67th percentile of rated companies |
| Innovation excellence | All new innovations need to improve at least one sustainability aspect | A circularity enhanced new sustainability scorecard has been launched in 2022, intended to enable Marel's innovation team to focus on improving sustainability throughout development (new program) |
Notes: ¹ Sustainability program 2022-2026. ² As measured by EcoVadis.
2022 ESG Report
Responsible Governance
Marel
Sustainability governance structure
Marel's governance pillars are further strengthened by the Focus First organizational structure
Responsible governance with the clear objective of ingraining ESG into Marel's business planning and operations
Notes: Focus First organizational structure
2022 ESG Report
Responsible governance
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Economic responsibility
Marel promotes fair trade, sustainable business practices and long-term profitability. Marel's vision is founded on the strong belief that we can create economic value and, in partnership with our customers, have a positive social impact at the same time.
By growing and sustaining an economically strong and responsible business over the long term, guided by a clear vision, we make significant positive impact on our customers and our people, as well as the economy and society. We believe that all parties should aim for having a positive economic impact in the societies in which they operate.
Transparency, innovation, and collaboration are key. We comply with international laws, anti-corruption rules, and local regulations, and encourage our partners, customers, and suppliers to do the same.
Innovation investment
Innovation is the primary way in which we make an impact and meaningfully contribute toward the UN Sustainable Development Goals. Annually, we invest about 6% of revenues into research and development of advanced and high-tech solutions with the aim of transforming food processing.
Marel creates solutions including equipment and software that reduce food waste, increase efficient resource use, minimize environmental footprint in the use phase, boost yields, add recycling options, and optimize portion sizes.
In 2022, Marel invested EUR 97.5 million (2021: EUR 80.8 million), or 5.7% of revenues (2021: 5.9%) in innovation to support new product development and ensure the continued competitiveness of the existing product offering.
Research and development expenses
Responsible governance
iMareI
Economic value generated in 2022 as measured by revenues in EUR
1.7bn
Tax footprint by Marel in 2022 in EUR
245m
Economic value composition
5.7% of revenues invested annually in INNOVATION
98m
40 years since foundation
Nasdaq
Listed since 1992
EURONEXT
Listed since 2019
Commitment to
ESG / UN SDG
8,018
Average FTEs
Tax footprint by Marel in EUR
22m other taxes and duties
32m corporate taxes
50m employment taxes borne by Marel
141m employment taxes collected borne by employees
FTEs per geography
2022 ESG Report
Responsible governance
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Marel's CEO to chair the coalition of Nordic CEOs for a sustainable future
The Nordic CEOs for a Sustainable Future is a unique platform to discuss how businesses and government can push sustainable initiatives towards realization of the United Nations Sustainable Development Goals and the Paris Climate Agreement. By working together we can advance action on climate and promote diversity and inclusion. Marel was a founding member of the coalition in 2018.
In 2023, Marel CEO Arni Oddur Thordarson will chair the coalition.
In 2023, the focus is on fostering public - private partnerships in the Nordics, including nature and biodiversity in climate risk and opportunity assessment, and more action to improve diversity and inclusion.
2022 ESG Report
Responsible governance
iMareI
Science and technology partnerships
Marel is a major participant in the European mEATquality research project coordinated by Wageningen University & Research. The project aims to improve pork and broiler meat quality by:
- Developing scientific knowledge and novel solutions addressing societal demands, environmental concerns and economic needs
- Creating techniques for automated quality assessment and methods for tracing meat origin
As part of this long-term research partnership, Marel is exploring the feasibility of integrating sensors. These sensors will measure broiler meat quality parameters deemed to be relevant for consumers and valuable to retailers.
Notes: European Research Project. H2020 FNR-05B mEAT quality project. www.meatquality.eu
2022 ESG Report
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ESG matters to our stakeholders
| Customers | Employees | Communities | Suppliers | Investors | Planet |
|---|---|---|---|---|---|
| Long-standing relationships form the bedrock of our business | We provide a safe and healthy workplace that fosters diversity and inclusion | Community engagement builds local capabilities, worker safety and cooperation | Marel's supply chain is resilient, sustainable, and mutually beneficial | Marel operates in a EUR 12bn market, supported by long-term secular growth trends | Solutions to help feed a growing population safely & efficiently, minimizing environmental impact^{1} |
| 100% of all new innovations passed Marel's circularity enhanced Sustainability Scorecard 2.0 | 20.1% Of employees are females representing the top 3 management levels | 25 science and technology partners across the globe | 15 sites our global supply chain team works across 15 sites worldwide | 12% committed to 10-year annual revenue growth target set in 2017 | 34% reduction vs 2019 baseline |
| 6% of annual revenues invested in R&D | 85% Of employees have undergone HSE training | EUR 250k donated to the International Committee of the Red Cross in 2022 to provide humanitarian support in Ukraine | 37% of all suppliers, based on spend, have signed up to Marel's supplier code of conduct since start of 2022 | EUR 700m sustainability linked syndicated credit facility – integrating finance into our 2026 growth strategy and 2040 net zero ambitions | 12% absolute reduction vs 2021 baseline |
Notes: 1 Sustainability program 2022-2026. Includes Scope 1, Scope 2 and business air travel from Scope 3 emission intensity from a 2019 base year.
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Thank you
Disclaimer
Forward-looking statements
Statements in this press release that are not based on historical facts are forward-looking statements. Although such statements are based on management's current estimates and expectations, forward-looking statements are inherently uncertain. We therefore caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements, and that we do not undertake to update any forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.
Market share data
Market share data Statements regarding market share, including those regarding Marel's competitive position, are based on outside sources such as research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Marel, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated.
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- Sustainability website