About This Report

At Tyson Foods, our strategic intent is to sustainably feed the world with the fastest growing portfolio of protein packed brands. Our purpose is to raise the world’s expectations for how much good food can do. We will innovate to develop new solutions that deliver healthier animals, healthier communities, healthier environment, healthier food and a healthier workplace.

Leadership Message

This is an exciting time for Tyson Foods. Since the beginning of 2017, we’ve been talking about our new purpose, which is raising the world’s expectations for how much good food can do. It’s a wonderful aspiration that reflects the heart of who we are. Deepening our commitment to a more sustainable food system is part of delivering on our purpose and it’s key to the future success of our company. We are renewing our commitment to sustainability, but our commitment is not new. Tyson team members and family farms have been working collaboratively throughout the history of the company and over the last several years to set the stage to accelerate our progress.

As part of our renewed commitment, we’re taking a holistic approach to sustainability focused on social, environmental and economic stewardship. It’s our belief that only by a comprehensive approach can we make transformational and enduring change for our company, our consumers and customers, our team members and our planet.

Beginning with this 2016 Sustainability Report, our focus areas for Tyson Foods will be Healthier Animals, Healthier Communities, Healthier Environment, Healthier Food and Healthier Workplace. Workplace includes our nearly 114,000 team members, and Communities are comprised of their families, friends and neighbors in more than 100 communities where we operate in the U.S.

This report reflects on our progress for our fiscal year 2016. We’re proud to publish that we’ve continued to reduce antibiotics usage in our broiler chicken supply chain; we’ve made improvements in workplace safety that eclipse our goals; and that more than 280 of our products meet specific school nutrition regulations for fat, sodium, and calorie content. We’re not perfect. We still face headwinds to progress in some areas, but we always view challenges as opportunities, and for more than 80 years, we have embraced opportunity.

In coming months, we will continue our collaboration with strategic non-governmental organizations that will help us develop science-based environmental targets for our operations. Daily we continue to increase our diligence in animal welfare, and plan to share more publicly soon. Our research and development teams constantly innovate not only to produce great-tasting food that’s better with fewer ingredients, but also on packaging that protects food longer and wastes less. The people who work for us and live beside us are the reasons we come to work each day, so we’re committed to improving our safety performance while also connecting with the world outside our walls to help reduce hunger and improve lives in the communities we serve.

The world’s population is growing at an incredible pace - more than 1 percent each year, according to United Nations. That may not sound like much, but consider the cumulative effect: there will be more than 2 billion additional people on the planet by 2050. They will all need nourishment and we see it as our responsibility to provide quality food, therefore it’s important for Tyson Foods to continue to sharpen our commitments to sustainable business practices.

We’re dedicated to action and improvements. Some improvements will develop over time, while some will happen quickly; we believe all will be groundbreaking. All will be with the intent to ensure our company delivers on its purpose: raising the world’s expectations for how much good food can do.

John Tyson signature

John Tyson,
Chairman

Tom Hayes signature

Tom Hayes,
President and CEO

Justin Whitmore signature

Justin Whitmore,
Chief Sustainability Officer

Materiality Assessment Overview

To ensure we are responsibly addressing the sustainability issues, opportunities, and risks of greatest importance to our company and stakeholders, we completed our first sustainability materiality assessment in early 2015. We will update this assessment in fiscal year 2017 and present the results in our next sustainability report.

Identifying Focus Areas

We completed our first task by compiling a preliminary list of 29 relevant sustainability issues using publicly available resources from respected organizations such as the Global Reporting Initiative, the United Nations Food and Agriculture Organization, and other sustainability advocates. We also reviewed various sustainability publications and reports, and benchmarked against our peers and key suppliers, customers, and others we do business with. An internal, cross- functional team of professionals then vetted and refined the issues list and agreed on brief, clear categories and definitions.

Stakeholder Input

To collect stakeholder input about our material issues list, we used an on-line survey and conducted interviews with key individuals. A third-party consultant conducted all internal and external interviews. In addition to identifying material issues, stakeholders were asked to provide feedback on the issue list itself, as well as insight and comments on our approach and performance in these areas.

For external stakeholders, we used a methodology for rating the issues based on the pervasiveness of concern for the issues across stakeholder categories such as environmental advocates, customers, suppliers, non-government organizations, and academic experts. We conducted 13 interviews with external stakeholders to inform the “importance to stakeholder” score.

Similarly, for the business perspective, our methodology rated issues based on the pervasiveness of concern for the issue across functions and business units. We conducted 25 interviews with key internal decision makers to determine how important each issue was to the business. Additionally, we conducted an on-line survey of more than 230 internal employees (whom we call team members) and asked them to rank the issues of greatest importance and concern to them.

Results

Our sustainability materiality assessment was not meant to be a comprehensive review of all sustainability risks and opportunities. Rather, it was a stakeholder engagement exercise designed to identify environmental, social, and governance issues that could potentially impact our business and stakeholders and improve our company performance.

All of the issues identified require a clear understanding of impacts and the responsible management of risks and opportunities; however, those issues determined to be most material to both our external stakeholders and our business were:

  • Workplace safety
  • Animal well-being
  • Food safety and quality assurance
  • Water management
  • Sustainable agriculture
  • Supply chain management
Materiality Assessment
Going Forward

We are committed to responsibly managing all material issues with diligence and care, and we are deepening our commitment to a more sustainable food system. We will innovate to develop new solutions that deliver healthier food, healthier animals, healthier workplaces, healthier communities and a healthier environment. In this commitment, we see a long-term opportunity to grow and increase profits sustainably. Through our comprehensive, holistic approach we will make long-lasting positive change, for our company, our consumers and customers, our team members and our planet. Below are example of how we are upholding this commitment.

Upholding our Commitment
  • Healthier Animals

    • April 2017 - We strive for sustainable practices in all business areas, including animal well-being. To drive continuous improvement, we've added more than 50 Animal Well-Being Specialists to work at our live-animal processing plants in the U.S. These positions will work collaboratively with our corporate-based teams and our plants to ensure best-in-class training and practices.
    • ŸJanuary 2017 - We’ve made progress towards our goal to stop the use of shared-class antibiotics in our broiler chicken flocks (those birds raised for meat) by the end of September 2017. Of the broiler chicks placed by Tyson Foods during fiscal 2016, only 1.6 percent were treated on farms by veterinarians with shared-class antibiotics.
  • Healthier Environment

    • ŸApril 2017 - Over the last two years, we have granted $1,000,000 to The Nature Conservancy to support conservation and restoration work occurring on the Elk and Spring rivers in Missouri and the Kings and Buffalo rivers in Arkansas.
    • ŸŸMay 2017 - In collaboration with a non-government organization, we are finalizing science-based targets for our greenhouse gas emissions and creating clear water principles and goals that support our ongoing water stewardship initiatives.
  • Healthier Communities

    • March 2016 - Kicked off a pilot of a new workplace education program, called Upward Academy, to focus on the unique needs of immigrant team members and improve engagement of team members at Tyson Foods and in our communities. More than 500 team members are currently enrolled in the program and more than 2,000 hours of instruction were presented through the program in Fiscal 2016.Ÿ
    • May 2017 - In an effort to help combat hunger in Haiti, we announced a $341,490 grant to OneEgg, a non-profit organization that delivers eggs to children in developing countries. The money will be used for construction of an egg-producing farm in Haiti that will provide animal protein to undernourished children while also establishing an economically sustainable business model from the sale of eggs produced at the farm.
  • Healthier Food

    • October 2016 - Acquired a 5-percent ownership stake in plant-based protein producer Beyond Meat, which provided capital to help the company expand its product portfolio and distribution.
    • ŸDecember 2016 - As part of our commitment to innovation and growth, we launched a venture capital fund focused on investing in companies developing breakthrough technologies, business models and products to sustainably feed a growing world population.
    • April 2017 - Ball Park® brand gave hot dog enthusiasts more reasons to grill out this summer by announcing the removal of added nitrites and nitrates* from all Ball Park beef hot dogs and eliminating by-products and added fillers from its meat line.

    • * Except for those naturally occurring in the celery juice powder and sea salt.

  • Healthier Workplace

  • April 2017 - As part of our focus on sustainable food production at scale, we announced we are expanding our efforts to create a better workplace at our production facilities. We collaborated with external organizations such as Oxfam America and the United Food and Commercial Workers Union to identify key focus areas. Highlights of our expanded workplace efforts include:

    • A continuing commitment to a goal of zero worker injuries and illnesses; striving to achieve a 15% year-over-year reduction in worker injuries and illnesses
    • A commitment to a goal of zero turnover; striving for a 10% year-over-year improvement company-wide in Team Member retention
    • Expansion of the We Care safety communications program to all poultry plants and continued participation of hourly workers in plant safety councils
    • Expansion of Upward Academy, a life skills program for workers
    • Publicly sharing the results of third-party social compliance audits conducted at our plantsŸ

We will continue to engage relevant stakeholders to ensure a best-in-class response to the most material issues, and enhanced communications for better transparency. We’re dedicated to action, and our actions will focus on ensuring our company delivers on its purpose: raising the world’s expectations for how much good food can do.

Awards and Recognition

Tyson Foods Moves Up in Newsweek’s 2016 Green Rankings

In June 2016, we moved up more than 50 spots in the 2016 Newsweek Green Rankings, reflecting our environmental and transparency improvement efforts. We ranked 328th out of 500 companies in the 2016 rankings, compared to 381st last year. Since 2009, the Newsweek Green Rankings has been considered one of the leading corporate environmental rankings, assessing the 500 largest publicly-traded companies in the United States and the 500 largest publicly-traded companies globally on overall environmental performance.

Tyson Foods Named to Food Logistics’ Top Green Provider List

In June 2016, Food Logistics, a publication exclusively dedicated to covering the global food supply chain, named Tyson Foods as a Top Green Provider for 2016. The annual Top Green Providers list recognizes companies whose products, services, or exemplary leadership enhance sustainability within the food and beverage industry. Tyson Foods was recognized for efforts to minimize its environmental impact with initiatives designed to reduce truck miles, such as installing ultra-light equipment, using direct ship to customers, and partnering with rail carriers.

Tyson Foods Receives Safety Honors

In August 2016, the Joint Industry Safety and Health Council awarded seven Tyson Foods facilities safety honors during this year’s National Safety Conference for the Poultry Industry. The facilities were recognized for the performance they achieved to protect employee health and safety. The Joint Industry Safety and Health Council consists of members from the U.S. Poultry & Egg Association, National Chicken Council, and National Turkey Federation.

Tyson Foods' Arkansas Facilities Receive Award and Recognition

In September 2016, Tyson Foods’ Russellville, Arkansas, further processing facility received a full-treatment Clean Water Award from the U.S. Poultry and Egg Association. The award is presented annually to poultry facilities excelling in their efforts at water management. In addition, Tyson Foods' River Valley Animal Foods of Scranton, Arkansas, and Tyson Foods' Rogers, Arkansas, locations received honorable mentions in the full and pre-treatment categories, respectively.

Tyson Foods and Taco Bell Awarded Most Innovative New Product

In October 2016, Tyson Foods was honored as the Prepared Foods Spirit of Innovation Awards Editor’s Pick and Most Innovative New Product for the Quesalupa®. The road to the unique Quesalupa® experience wasn’t easy. The development of the Quesalupa® product took the Tyson Foods and Taco Bell teams about three years, 2,100 hours filled with innovative thinking, and hundreds of prototype samples. The Prepared Foods and Ventura Foods Spirit of Innovation Awards, which began in 2003, recognize formulators’ exemplary teamwork and new product achievements on the basis of originality, teamwork and demonstrated sales success.

Recognition for Valuing Diversity

In October 2016 to commemorate October as Disability Employment Awareness Month, Tyson Foods received the Distinguished Business Award from Arkansas Rehabilitation Services, a division of the Arkansas Department of Career Education. The award recognized Tyson Foods as a model employer for valuing diversity and fostering a work environment to advance opportunities for Arkansans with disabilities.

Tyson Foods Earns Top Marks for LGBT Equality

On December 5, 2016, we were recognized by the Human Rights Campaign Foundation as a Best Place to Work for lesbian, gay, bisexual, and transgender (LGBT) Equality. We received a perfect score of 100 percent on the 2017 Corporate Equality Index , a national benchmarking survey and report on corporate policies and practices related to LGBT workplace equality. We join the ranks of 517 major U.S. businesses that also earned top marks this year.

Tyson Foods Tops FORTUNE World's Most Admired List for Food Production

In February 2017, we were recognized by Fortune magazine as No. 1 on the World’s Most Admired Companies list in the Food Production segment. This recognition moves us up four places from our 2016 ranking.

Tyson Foods Receives Telly Award

In May 2016 we received a Telly Award for our video featuring our Meals That Matter Hero "KNOW Hunger: Queen Lola Feeds Austin." Telly Awards is an international creative award honoring the finest in film, video and commercials.

Key Performance Metrics

Environmental Intensity Indicators* FY2014 FY2015 FY2016
Energy Use Intensity (btu per pound of finished product produced) 1,158 1,149 1,210
Electricity Intensity (kWh per pound of finished product produced) 0.115 0.117 0.121
Fuel Intensity (Btu per pound of finished product produced) 767.12 750.84 798.86
Water Use Intensity (gallons per pound of finished product produced) 0.90 0.92 0.99
*This footprint includes our energy and water use from our U.S.-based chicken, beef, pork, turkey, and prepared foods processing operations. Information from our auxiliary support locations (e.g., feed mills and hatcheries) and transportation operations are not included in this footprint. Information from our U.S.-based Cobb-Vantress, Inc., and The Pork Group, Inc., subsidiaries is not included in this footprint. Additionally, this footprint does not include Chicago, IL (Bruss), Clearfield, UT; Green Bay, WI; Jacksonville, FL (Bruss), Rancho Cucamonga, CA; San Diego, CA; or Warren, MI. FY15 data is based on a 53-week fiscal year; and FY14 and FY16 are based on a 52-week fiscal year.
Energy* FY2014 FY2015 FY2016
Electricity Purchased (kWh) 3,744,681,325 3,847,740,044 3,848,751,002
Fuel Used - includes natural gas, propane, fuel oil, biogas and landfill gas (mmBtu) 24,961,935 24,669,602 25,410,228
Renewable Energy (mmBtu) 572,930 625,968 828,383
Renewable Energy (as percent of total energy used) 1.52% 1.66% 2.15%
Total Energy Used (mmBtu) 37,693,851 37,751,918 38,495,981
*This footprint includes our energy use from our U.S.-based beef, pork, chicken, turkey, and prepared foods processing operations. Information from our auxiliary support locations (e.g., feed mills and hatcheries) and transportation operations are not included in this footprint. Information from our U.S.-based Cobb-Vantress, Inc., and The Pork Group, Inc., subsidiaries is not included in this footprint. Additionally, this footprint does not include Chicago, IL (Bruss), Clearfield, UT; Green Bay, WI; Jacksonville, FL (Bruss), Rancho Cucamonga, CA; San Diego, CA; or Warren, MI. FY15 data is based on a 53-week fiscal year; and FY14 and FY16 are based on a 52-week fiscal year.
GHG Emissions* FY2015 FY2016
Direct GHG emissions - Scope 1 (metric tonnes of CO2e) 2,940,496 2,920,188
Indirect GHG emissions - Scope 2 (metric tonnes of CO2e) 2,558,301 2,851,800
Total GHG Emissions (metric tonnes of CO2e) 5,498,797 5,771,988
GHG Intensity (metrics tonnes CO2e per 1,000 pounds of finished product produced) 0.167 0.181
*This footprint includes GHG emissions from our U.S.-based beef, pork, chicken, turkey, and prepared foods processing operations, as well as our auxiliary support locations (e.g., feed mills and hatcheries) and transportation operations. Information from The Pork Group, Inc. subsidiary is also included in this footprint. Information from our U.S.-based Cobb-Vantress, Inc. subsidiary is not included in this footprint. Additionally, this footprint does not include Chicago, IL (Bruss), Clearfield, UT; Green Bay, WI; Jacksonville, FL (Bruss), Rancho Cucamonga, CA; San Diego, CA; or Warren, MI. Since auxiliary support locations are included in this footprint but do not have production data associated with them, our intensity may appear higher since there is not production data included that would offset those emissions. Carbon Dioxide equivalent (CO2e) is carbon dioxide plus nitrous oxide and methane multiplied by the respective global warming potentials. FY15 data is based on a 53-week fiscal year and FY16 is based on a 52-week fiscal year.
Water* FY2014 FY2015 FY2016
Total Water Withdrawal (billion gallons) 29.31 30.31 31.36
*This footprint includes our water use from our U.S.-based beef, pork, chicken, turkey, and prepared foods processing operations. Information from our auxiliary support locations (e.g., feed mills and hatcheries) and transportation operations are not included in this footprint. Information from our U.S.-based Cobb-Vantress, Inc., and The Pork Group, Inc., subsidiaries is not included in this footprint. Additionally, this footprint does not include Chicago, IL (Bruss), Clearfield, UT; Green Bay, WI; Jacksonville, FL (Bruss), Rancho Cucamonga, CA; San Diego, CA; or Warren, MI. FY15 data is based on a 53-week fiscal year; and FY14 and FY16 are based on a 52-week fiscal year.
Environmental Compliance* FY2014 FY2015 FY2016
Wastewater Permit Exceedances 134 117 68
Notices of Violation (NOV's) 40 29 19
Penalty Amounts Paid Per Fiscal Year $354,207 $403,809 $92,455
Supplemental Environmental Project Amount Per Fiscal Year $19,284 $220,000 $—
Superfund Settlements $— $— $17,500
Total Reportable Chemical Releases 21 11 5
*These statistics are representative of all U.S.-based facilities, excluding Cobb-Vantress, Inc. FY14 does not include Hillshire Brands operations.
Certifications* FY2015 FY2016
Certified Labs 11 13
Global Food Safety Initiative (GFSI) Certified Plants 100 99
Safe Quality Foods (SQF) Level 3 Certified Plants 11 13
Safe Quality Foods (SQF) Level 2 Certified Plants 2 1
British Retail Consortium (BRC) Certified Plants 85 83
Food Safety System Certification (FSSC) 22000 Certified Plants 2 2
Product Recalls 1 (Ground Beef) 2 (Hot Wings,
Chicken Nuggets)
*The number of certifications at our plants in FY16 has decreased from FY15 due to several plant closures.
Healthy and Nutritious Products FY2015 FY2016
Smart Snacks in Schools 31 31
Products that meet school nutrition regulations for fat, sodium, and calorie content 280 280
Kid Tested, Kid Approved™ products 46 65
K-12 Products that carry the Whole Grain Stamp 125 122
Products eligible for federal reimbursement in the National School Lunch and School Breakfast Program 112 94
Cool School Café® 42
Safety Performance FY2014 Excludes Hillshire FY2015 Includes Hillshire FY2016 Includes Hillshire
Lost Time Incident Rate1 0.87 0.87 0.85
Total Recordable Incident Rate2 8.59 8.16* 6.58
Days Away, Restricted and Transfer Rate3 5.75 5.37 4.99
*FY15 Total Recordable Incident Rate adjusted from 7.83 to 8.16 to reflect an increase in hearing loss cases related to the conversion of data to a new hearing test vendor.
1Number of work-related injury and illnesses that result in one or more days away from work per 100 Team Members.
2Number of work-related injury and illnesses per 100 Team Members.
3Number of work-related injuries and illnesses resulting in a Team Member missing work, having restricted work activity, or being transferred from their regular work assignment per 100 Team Members.
Workforce FY2015 FY2016
Total Number of Employees 113,000 114,000
U.S. Team Members 107,000 108,000
International Team Members 6,000 6,000
Hourly Team Members* 96,000 96,500
Salaried Team Members* 11,000 11,500
Full-time Team Members* 105,000 107,000
Part-time Team Members* 2,000 1,000
Team Members under age 30* 23,000 23,000
Team Members 30-50 years old* 52,000 52,000
Team Members over age 50* 32,000 33,000
Male Team Members* 61% 61%
Female Team Members* 39% 39%
Retention Rate* 72% 64%
Team Members with five or more years of service* 52% 50%
Team Members with 20 or more years of service* 24% 25%
Team Members with 30 or more years of service* 7% 8%
*US/Domestic Employees Only

About Our Reporting

The Tyson Foods 2016 Sustainability Report covers Fiscal 2016 (October 4, 2015, through October 1, 2016), with select highlights from October 2, 2016, through March 15, 2017, of the company’s Fiscal 2017.

As with previous sustainability reports, this report provides a comprehensive and transparent review of our commitment to, and advancement towards social progress, environmental stewardship, economic growth, and product responsibility.

Contact Us

Mailing Address
Tyson Foods, Inc.
2200 W. Don Tyson Parkway, CP005
Springdale, AR 72762-6999

Leigh Ann Johnston
Director, Sustainability
leigh.ann.johnston@tyson.com
479-290-3419