September 4, 2020

Smithfield Foods announces zero emissions plan

Biggest pork producer in the world Smithfield Foods said it aims to cut emissions from its operations to zero, the first in the industry to publicly announce a carbon negative goal, Bloomberg reported.

Investors and retailers have pressured the meat production industry to reduce carbon emissions, but they are unable to do so because livestock is purchased from third-party famers.

Smithfield's announcement has a larger impact as it accounts for 50% of swine production.

Stewart Leeth, Smithfield's chief sustainability officer said the company aims to zero out 16% of its total emissions, with a pledge to cut total emissions by 2025 by 25%.

The majority of the company's total emissions come from Scope 3, which includes manure management, feed production and customer use outside Smithfield-owned farms. Scope 1 and 2 are fuels used by vehicles and power plant generated electricity, currently at 1.6 metric tonnes for Smithfield Foods' operations in the US and overseas.

To cut emissions, Smithfield Foods will lower transportation miles driven, optimise fertilisers for the growth of livestock feed, and capture swine farm methane emissions. Smithfield will invest US$250 million with Dominion Energy until 2028 to develop methane capturing projects in swine farms.

Technology to convert biogas from swine manure is in place, but Smithfield aims to ensure the biogas can be injected into the grid and recover its investments.

Leeth said Smithfield is working together with contractors that supply 50% of Smithfield's swine to enrol them into biogas projects.

Competitors Tyson Foods and Cargill have pledged to cut their emissions by 30% by 2030.

Smithfield Foods is majority-owned by Hong Kong-listed WH Group.

-      Bloomberg