Darling Ingredients
Company Double Materiality Analysis
This one-page analysis examines a company’s products, services and operational practices and whether they positively contribute or detract from sustainability goals. Our analysis relies on quantitative indicators, leading industry frameworks and covers topics most relevant to the company’s industry.
DARLING INGREDIENTS
Ticker: DAR US
ISIN: US2372661015
Market Cap: US$8.9 billion
GICS Sector: Consumer Staples
SICS Industry: Agricultural Products
Country: United States
SMS theme: Protecting Natural Capital
SMS sub-theme: Circular Economy
Contribution to theme: Positive
Company Description
Darling is a developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients. It operates in the following segments: Feed Ingredients (69% of revenue), Food Ingredients (22%), and Fuel Ingredients (8%).
Revenue exposure by country/region: United States (59%) and Europe (27%).
Contribution to Circular Economy objectives
Darling contributes positively towards the circular economy. Their collection of food waste is repurposed into many different products that feed livestock & pets, provide ingredients to improve people’s health and produce biofuels.
Operational Performance
(Laggard, Aligned or Leader)
Material Topics for Agricultural Products: GHG emissions, energy management, water & wastewater mgmt., product quality & safety, employee health & safety, supply chain management, material sourcing & efficiency.
Assessment: Aligned
Darling has been reducing their GHG emissions (scope 1 and 2) even as revenues increase.
No specific target on renewable energy use with current rate of 13% in 2022 vs. 6% in 2020.
13% of water withdrawal from areas with water stress. Zero incidences of non-compliance of standards or regulations.
96% of Food-grade facilities reached highest certification from the Global Food Safety Initiative (GSFI).
Total Recordable Injury Rate (TRIR) and work-related fatalities has been stable over the past 2 years.
Darling expects suppliers to follow their Supplier Code of Conduct, but there is currently no audit.
Controversies: 2022 paid settlement for allegations of discharging pollutants into tributary of the Chesapeake Bay.
Product/Service Impact
(Negative, Neutral or Positive)
Assessment: Positive
50% of an animal makes it to the dinner plate, Darling takes the leftovers and turns it into valuable ingredients.
Animal by-products from slaughterhouses, butchers and grocery stores are turned feed grade food, reducing the need to grow food to feed livestock.
Bakery residuals are collected and turned into animal feed instead of being sent to landfills.
Collagen exacted from bones are used in many products that have health benefits for people.
Converts used cooking oils and animal fates into biofuel products with reduces GHG emissions up to 85% compared to fossil fuels.
SDG Alignment:
A downloadable version of the Double Materiality Analysis of Darling Ingredients is available in the pdf attached.
