Hormel Foods announces new environmental goals, reducing packaging by 21.8 million pounds and water consumption by 15 percent
July 26, 2012
Hormel Foods Corporation (NYSE:HRL) announced today its second set of environmental goals. The company surpassed the water reduction, packaging and solid waste minimization goals of its first set of five-year goals, which ended in 2011. Hormel Foods improved performance on a number of key metrics, including surpassing the packaging minimization goal (reducing packaging by a total of 21.8 million pounds) and beating the water reduction goal (reducing water consumption by 15 percent).
“The last five years have been rewarding, as we achieved significant reductions on several key sustainability metrics; challenging, as we reported data that had not previously been calculated; and enlightening, as the process provided an opportunity for us to take a fresh look at long established policies and procedures,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer at Hormel Foods.
The new packaging, water, solid waste, air and energy goals became effective in fiscal year 2012 and are being measured against base year 2011 at company-owned and international manufacturing locations. Progress on the first set of five-year goals and the company’s new goals are outlined below.
Previous goal: Reduce product packaging by 4 million poundsi annually from 2006 to 2011.
Result: We reduced packaging by an average of 4.4 million pounds per year and a total of 21.8 million pounds.
New goal: Reduce product packaging by 25 million pounds by 2020.
Previous goal: Reduce water consumption at our U.S. manufacturing facilities by 10 percent by end of fiscal year 2011 using fiscal year 2006 as a benchmark.
Result: Reduced water consumption by 15 percent in fiscal year 2011 compared to 2006 levels.ii We met our water use reduction goal one year early by reducing water use 11 percent in 2010 compared to 2006 levels and now again in 2011 with a 15 percent reduction.ii
New goal: Reduce 10 percent of water use by 2020.
Previous solid waste recycling goal: Increase recycling to 50 percent of total waste by November 2011 using fiscal year 2006 as a benchmark.
Result: The recycling rate was 46 percent at the close of fiscal year 2011 compared to 41 percent at the close of fiscal year 2010.ii
Previous solid waste minimization goal: Reduce solid waste to landfills by 10 percent by end of fiscal year 2011 using 2006 as a benchmark.
Result: Reduced solid waste to landfills by 29 percent in 2011 compared to 2006 levels.ii
New goal: Reduce 10 percent of solid waste sent to landfill by 2020.
Previous goal: Reduce greenhouse gases at our U.S. manufacturing facilitiesii 10 percent by end of fiscal year 2014 using fiscal year 2009 as a benchmark.
Result: Decreased greenhouse gas emissions 5 percent compared to fiscal year 2009.ii
New goal: Reduce 10 percent of greenhouse gas emissions by 2020.
Previous goal: Reduce energy use at our U.S. manufacturing facilities by 10 percent by end of year 2011 using fiscal year 2006 as a benchmark.
Result: Indirect energy consumption increased 1 percent in fiscal year 2011 compared to 2006 levels. Direct energy consumption decreased by 1 percent compared to 2006 levels.ii
New goal: Reduce 10 percent of non-renewable energy use by 2020.
Throughout the span of the first goal cycle, Hormel Foods implemented several significant capital projects designed to reduce energy intensity, and the company has documented positive results.
“While we did not meet our initial aggressive energy reduction goal, we will continue to emphasize energy conservation throughout the organization,” said Thomas E. Raymond, director of environmental sustainability at Hormel Foods. “Our efforts with the first five-year goals have led to notable improvements in our energy program and have given us knowledge that we will apply to our ongoing reduction efforts.”
In May, the company also announced the release of its 2011 Hormel Foods Corporate Responsibility Report, available online at www.hormelfoods.com/csr. This is the company’s fifth full report, and Hormel Foods plans to continue reporting on its environmental and social performance annually; the next report will be released in May 2013 for data spanning November 2011 to October 2012.
i Goal increased from previous report, from 3 million to 4 million pounds.
ii When normalized for production.