Why is the environment important to us?

Simple – it’s where our food comes from.

At Tyson Foods, we’re committed to respecting and conserving the environment and natural resources we depend on to run our business. This commitment is essential to doing business in a sustainable way, and it’s one of our Core Values – “to serve as stewards of the animals, land, and environment entrusted to us.”

Our commitment to respecting and conserving the environment is a big one. To help us get there, we have several interrelated commitments we focus on each day.

  • Protecting the environment through pollution prevention and continuous improvement
  • Compliance with environmental laws, regulations, and other requirements
  • Setting higher standards for ourselves where opportunities are found
  • Finding opportunities, using best practices, and measuring our performance against our goals to reduce environmental impacts
  • Open communication with our team members, contractors, and suppliers to ensure they’re aware of their environmental responsibilities at our locations
  • Engaging community leaders, regulators, and non-government organizations on topics about the environment

As part of our commitment to the environment, we have an Environmental Management System (EMS) in place at each of our facilities in the United States. Our EMS is designed to:

Minimize

Minimize the “environmental footprint” of our operations in the communities where we work and live

Support

Support achievement of our environmental sustainability goals

Improve

Help us improve environmental compliance

EMS Systems and the Acquisition of The Hillshire Brands Company

Modeled after the International Organization for Standardization 14001 criteria, our EMS was implemented in phases from 2004 to 2009. With the recent acquisition of The Hillshire Brands Company, we have examined the legacy EMS approaches of both companies and are working to standardize an improved EMS across all locations by integrating the best features of both systems.

Energy

Every day, we use energy for powering processing equipment; cooking, chilling, and freezing product; transporting product to distribution centers and customers; and more.

The main types of energy we use in our operations include electricity, fossil fuels, and biogas.

Our normalized energy use increased by 1.37 percent from fiscal year 2014 to fiscal year 2015.

Energy Use*

FY2013

FY2014

FY2015

Total Energy Use

All Sources (million mmBtu)

38.47

39.42

40.12

Energy Use Intensity

Btu used to create a pound of finished product

1,181

1,198

1,214

Electricity

(million MWh)

3.84

3.84

3.88

Fuel

Includes natural gas, fuel oil, propane, coal, biogas and landfill gas (million mmBtu)

25.42

26.38

26.92

Renewable Energy

Includes biogas and landfill gas (mmBtu)

614,853

572,930

625,968

% Renewable Energy

Of total energy used

1.60%

1.45%

1.56%

*This footprint includes our energy 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 and Pork Group subsidiaries is not included in this footprint. Additionally, this footprint does not include Clearfield, UT; Green Bay, WI; Rancho Cucamonga, CA; San Diego, CA; Vernon, CA; or Warren, MI.

FY15 data is based on a 53-week fiscal year; FY13 and FY14 are based on a 52-week fiscal year. Tyson Foods acquired The Hillshire Brands Company in August 2014; however, information in the above table includes data from Hillshire facilities for all periods presented.

Energy and Water Management at Obion County

Our Obion County, Tennessee, poultry complex launched a pilot project in February 2014 to provide continuous information and alerts about energy and water use as related to production targets and goals.

“We discovered that when the facility had real-time insight into how energy and water were being used, they were quickly able to take corrective action in situations where energy or water was being wasted,” said Leigh Ann Johnston, director of sustainability.

By the end of fiscal year 2015, this project helped the facility achieve an eight percent reduction in energy use and a nine percent reduction in water use.

  • Saved enough to power 1,200 homes.

  • The energy-efficiency improvement is enough to provide power to more than 1,200 Tennessee residential customers for one year, according to information from the U.S. Energy Information Administration.

  • Saved 400 million bottles of water.

  • Our water-efficiency improvement is enough to provide nearly 400 million 16.9-ounce bottles of water or supply 361 families of four with water for one year, according to information from the U.S. Environmental Protection Agency’s WaterSense® Partnership Program.

Our Obion County complex was nominated in 2015 by the Tennessee Chamber of Commerce for the 33rd Environment and Energy Awards. They also received Honorable Mention for Environmental Stewardship from the U.S. Poultry and Egg Association for the Clean Water Award in this past year.

Biogas Production

At six of our production locations, we have covered wastewater treatment lagoons. Covering the lagoons allows us to capture the biogas generated from the lagoons. Biogas is generated by bacteria consuming nutrients in the wastewater, which then produces methane and carbon dioxide gases.

  • We burn 700 million ft.3 of biogas.

  • In a typical year we burn 700 million cubic feet of biogas in our boilers. This is equivalent to the amount of natural gas used by 5,700 homes annually.

We clean up the biogas by removing some of the sulfur and water, and then use the biogas in the plant boilers (at four of the six plants) instead of purchasing natural gas. This practice takes advantage of a renewable fuel source, helps reduce greenhouse gas emissions, and reduces the amount of natural gas we need to purchase.

Greenhouse Gas Emissions

Our plants and trucks use electricity; various fuels which include biogas, diesel fuel, fuel oil, natural gas, and propane; and refrigerants. This results in emissions of greenhouse gases (GHG) and other air pollutants. Our goal is to use renewable fuels like biogas from our wastewater treatment operations, where practical, and to make efficient use of energy to minimize emissions.

  • Carbon Disclosure

  • Tyson Foods will begin reporting Scope 1 and 2 greenhouse gas emissions to CDP (formerly the Carbon Disclosure Project) in 2016.

We measure and report our GHG emissions on an annual basis and have decided to report, at a minimum, Scope 1 and 2 emissions through CDP in 2016.

Scope 1 emissions are direct GHG emissions from sources that are owned or controlled by us. For example, this may include emissions from fossil fuels burned on site and emissions from our owned or leased vehicles.

Scope 2 emissions are indirect GHG emissions resulting from the off-site generation of electricity, heating and cooling, and steam we purchase.

GHG Emissions*

CY2012

CY2013

CY2014

Total GHG Emissions (Scope 1 and Scope 2)

Million Metric Tonnes CO2e

5.83

6.52

6.46

GHG Intensity

Metric Tonnes CO2e generated to produce 1,000 pounds of finished product

0.181

0.200

0.196

Direct GHG Emissions – Scope 1

Million Metric Tonnes CO2e

2.81

3.61

3.30

Indirect GHG Emissions – Scope 2

Million Metric Tonnes CO2e

3.02

2.91

3.17

CY = Calendar Year

*This footprint includes GHG emissions from our U.S.-based chicken, beef, pork, turkey, and prepared foods processing operations, as well as our auxiliary support locations (e.g., feed mills and hatcheries) and transportation operations. Information from our U.S.-based Cobb-Vantress and Pork Group subsidiaries is also included in this footprint. These metrics are also normalized against production data from our manufacturing facilities for FY12-FY14. 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; FY13 and FY14 are based on a 52-week fiscal year. Tyson Foods acquired The Hillshire Brands Company in August 2014; however, information in the above table includes data from Hillshire facilities for all periods presented.

Wastes

We continue to focus on increasing our recycling efforts for cardboard, paper, plastic, and wood through partnership with our waste handlers and on-going plant surveys and waste stream evaluations to determine where we have opportunities to improve. Our efforts also include maximizing waste compactor loads to minimize hauls, thereby reducing truck fuel usage and GHG emissions.

In our animal processing operations, we not only harvest the meat for use in operations, but also use the majority of the by-products such as hides, skins, bones and blood to create saleable materials. Virtually nothing is wasted. The newest Meat MythCrusher video, produced by the North American Meat Institute (NAMI) and American Meat Science Association (AMSA), gives a good description of this process.

In April 2014, President & CEO, Donnie Smith, talked with the Wall Street Journal about how we’ve been able to make recycling Tyson Foods’ waste profitable by separating different types of recyclable materials.

Although we do not have waste metrics to report at this time, we are working to put an enterprise-wide system in place that will allow us to better understand our waste footprint and report these metrics in the future. We continue to investigate new recycling avenues for our waste streams as well as to reduce the amount of waste we send to landfills across the company. Below are a couple of examples.

Nutrient Management Challenge

We have partnered with the U.S. Environmental Protection Agency, other pork and dairy producers, U.S. Department of Agriculture, World Wildlife Fund, and environmental and scientific experts to host a competition to find affordable technologies to recycle nutrients from livestock waste and create valuable products. A key goal of the Nutrient Recycling Challenge, a four-phase competition, is to accelerate the development of nutrient recovery technologies that are adoptable for pork and dairy farms, and can produce environmental and economic benefits. Phase I, which runs from November 16, 2015, through January 15, 2016, calls for innovators to provide papers outlining ideas for these technologies. Phase I prizes were announced in March 2016 and final awards will be given in January 2017.

Go Green Program

A success story is our Go Green program which started in 2013 and has been implemented at five of our pork plants over the past three years.

  • 8.6+ million lbs. recycled.

  • More than 8.6 million pounds of materials have been recycled since the program started, which has reduced the amount of material going to a landfill by an average of 40 percent.

The program focuses on employee involvement and waste sorting to maximize the volume of materials being recycled.

Giving Back and Recycling Go Hand-in-Hand

From 2011 to 2015, our Hope and Nashville, Ark. facilities donated more than 10,900 tons of old corrugated containers to the Howard County Children's Center. The children’s center baled and recycled this cardboard to collect recycling rebates. The rebates collected by the center were used for capital improvement projects such as new paint and flooring in classrooms, a stage for pre-school graduations, talent shows, adult awards banquets and other activities. This is just another example of how our locations serve as stewards of the environment and support their communities.

Water

Our first priority is to ensure the wholesomeness and safety of our food products, and water is essential to producing safe food. We recognize water of suitable quality and volume is a finite resource. We also understand the important balance between protecting product quality and conserving a natural resource. Success in this area requires a holistic approach to water stewardship beginning with the responsible use of this resource at our operations.

  • Food safety and quality is our first priority.

  • We will never reduce water usage in situations where food safety and quality could be compromised.

  • Reporting to CDP

  • Tyson Foods will begin reporting its water management and performance efforts to the CDP in 2016.

Our efforts include the following.

  • Compliance with regulatory discharge permits
  • Measuring and monitoring water usage and discharge at our operations
  • Growing our understanding of our water footprint for raw-materials
  • Evaluating short- and long-term water supply risk
  • Oversight of water stewardship efforts by senior management
  • Setting internal standards and practices for water stewardship
  • Seeking feedback on our efforts from customers, regulators, consumers and non-government organizations
  • Sharing information regarding our water stewardship efforts inside and outside the company.

Our normalized water use decreased by 1.80 percent from fiscal year 2014 to fiscal year 2015.

Water Use*

FY2013

FY2014

FY2015

Total Water Use

Billion Gallons

31.00

30.87

30.43

Water Use Intensity

Gallons used to produce a pound of finished product

0.95

0.94

0.92

*This footprint includes our 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 and Pork Group subsidiaries is not included in this footprint. Additionally, this footprint does not include Clearfield, UT; Green Bay, WI; Rancho Cucamonga, CA; San Diego, CA; Vernon, CA; or Warren, MI.

FY15 data is based on a 53-week fiscal year; FY13 and FY14 are based on a 52-week fiscal year. Tyson Foods acquired The Hillshire Brands Company in August 2014; however, information in the above table includes data from Hillshire facilities for all periods presented.

The Nature Conservancy
Collaboration with The Nature Conservancy

Conserving the waterways of northwest Arkansas and southwest Missouri is the focus of a new collaboration between The Nature Conservancy and Tyson Foods, Inc. We presented a $500,000 check that will go toward conserving water quality in streams and lakes throughout northwest Arkansas and southwest Missouri.

Contribution to Beaver Watershed Assessment

In conjunction with Earth Day on April 22, 2015, we donated $10,000 to the Beaver Watershed Alliance. The Beaver Watershed Alliance will put the money toward identifying approximately 1,500 streamside landowners in the Lower White River/Lakeside Watershed to conduct a watershed opportunity assessment and support the implementation of voluntary best management practices for water quality.

The opportunity assessment will include reaching out to communities, individuals, and businesses located along streams in the Lakeside subwatershed of Beaver Lake. Outreach will provide information about the subwatershed, the issues affecting water quality, potential future issues, and how people can help maintain and improve water quality.

Transportation

We continue to be a proud partner and leader in EPA’s SmartWay® program. In fiscal 2015, EPA named us a SmartWay Excellence Semi-Finalist, a selection based on the environmental performance we demonstrated via the Partner Tools and use of SmartWay carriers to move freight. In fact, we require all of our products be moved by SmartWay participating carriers. Through our commitment and partnership in the SmartWay program, as well as that of our carriers, 59-percent of our carrier base has improved a minimum of two measured emissions categories (CO2, NOx, PM) year-over-year.

  • We’ve saved 316 million truck miles.

  • We saved more than 52-million over-the-road truck miles in fiscal year 2015, and since fiscal year 2011, we’ve saved more than 316 million over-the-road trucks miles.

In addition to being an active participant of the SmartWay program, we continue to work on reducing our environmental impact and improving our overall sustainability with several initiatives designed to reduce truck miles on our nation’s highways.

We’re proud of our many transportation sustainability accomplishments in fiscal year 2015.

  • Our private fleet continues to research innovative ways to reduce emissions, lower fuel consumption and decrease greenhouse gases, while improving their miles per gallon (MPG) performance. These efforts saved over 412,000 gallons of fuel.
  • We continue to find new opportunities to save truck miles by shipping directly to a customer’s dock. Accordingly, by altering order patterns and volumes to allow direct shipping, we saved more than 3.48 million truck miles.
  • We, and our SmartWay partners, have invested in ultra-light equipment that allows us to add product weight to our shipments, reduce truck miles, and minimize the number of trucks on the road. These efforts eliminated over one million over-the-road truck miles.
  • We saved more than 48-million truck miles by using rail to ship food and other products to our customers.

These initiatives, along with the support and leadership of our team members and the commitment of our partners are responsible for the elimination of more than 52 million over-the-road truck miles during the last fiscal year.

Packaging Sustainability

Our approach to improving the sustainability of our packaging is to leverage the 5 Rs (Remove, Reduce, Reuse, Recycle and Renew) during design without sacrificing quality or product protection. We focus on increasing recyclable and renewable materials, as well as reducing packaging. We continue to explore opportunities to source renewable packaging materials and monitor the industry for new developments in technology.

The packaging innovation labs and pilot plants at our Discovery Centers in Springdale, Ark., and Downers Grove, Ill., allow us to be very effective at developing sustainable packaging. The two packaging labs are equipped to enable engineers to conduct extensive testing to optimize final package designs.

An example of one of the tools is a compression strength tester, which is used to determine the optimal case strength required to ship a product without incurring damage. The labs are also fully equipped with multiple types of testing and design tools. The packaging machines in our pilot plants enable the team to quickly and accurately scale up concepts and prototypes from initial consumer research to final package specifications.

We also leverage suppliers’ specialized testing capabilities to evaluate some of our more unique packaging materials. We partner with third-party suppliers to conduct International Safe Transit Association testing which helps develop the ideal packaging structure, guaranteeing quality, integrity and minimal packaging. Our internal logistics CO2/fuel analysis tool helps us quantify the impact associated with shipping finished goods. We use the recommended packaging metrics and definitions made available by the Sustainable Packaging Coalition and the Global Packaging Project. This allows us to align with the packaging industry’s standards for terms, metrics, and packaging sustainability reporting.

  • 8 million pounds of fiber saved.

  • More than eight million pounds of fiber was reduced from corrugated boxes and paperboard cartons.

Audits Result in Fiscal 2015 Improvements

We partner with our packaging suppliers to investigate new opportunities to make our packaging more sustainable. Our strategic packaging suppliers conduct quarterly audits at our production locations to identify potential areas for improvement.

We eliminated more than 720,000 pounds of plastic from flexible films and bags.

Our corrugated boxes are produced from 100-percent renewable material, contain 30-percent post-consumer recyclable packaging, and are Sustainable Forestry Initiative® (SFI) program certified.

  • By converting to a fully recyclable tray for Russer® Brand lunchmeat, we created an opportunity to recycle nearly 520,000 pounds of plastic that was previously landfilled.
  • By optimizing the box strength for pet treats, we were able to save nearly a million pounds of fiber.
  • Purchased new packaging equipment that would allow us to automate the carton used for our individually wrapped pound cake product. By modifying the carton style, it resulted in a reduction of 60,000 pounds of fiber.
  • Modifying and improving our boxes at several of our meat and poultry production facilities resulted in a reduction of more than 8,300,000 pounds of fiber.
  • By increasing the number of cases per pallet on the Jimmy Dean® bulk biscuit and croissant products, there was a reduction in 185 trucks, nearly 27,700 gallons of diesel fuel, and 165,945 food miles.
  • Reducing the height of the boxes for the Jimmy Dean® roll sausages by 1/8 inch eliminated more than 200,000 pounds of fiber. This modification allowed us to increase the number of cases per pallet leading to a reduction of 47 trucks needed to transport our products, 7,600 gallons of diesel fuel, and 45,000 food miles.
  • By optimizing the lamination on the labels for Hillshire Farm® products, we saved 87,400 pounds of plastic.
  • By reducing fiber and shortening the flaps on Ball Park® hot dog boxes, we saved 525,000 pounds of material.

*All packaging reductions highlighted above occurred at varying times during FY15 and total reductions and savings noted assume current product volumes.

Compliance Metrics

 

FY13

FY14

FY15

Wastewater Permit Exceedances

56

134

117

Notices of Violation (NOV)

11

40

29

Penalties Per Fiscal Year

Details on penalties incurred that were over $5,000 are provided in the table below.

$3,952,908

$354,207

$403,809

Supplemental Environmental Project Amount Per Fiscal Year

$300,000

$19,284

$220,000

Total Reportable Chemical Releases

21

21

11

These statistics are representative of all U.S.-based facilities, excluding Cobb-Vantress.

FY13 and FY14 does not include Hillshire Brands operations.

Details on Penalties Incurred over $5,000

Fiscal Year

Location

Penalty

Description

FY13

Facilities in MO, NE, IA, and KS

$3,950,000

A Consent Decree was filed with the court addressing alleged violations of the Clean Air Act (CAA), Risk Management Plan (RMP) program at 23 facilities related to our ammonia refrigeration systems. A supplemental environmental project (SEP) in the amount of $300,000 was part of this settlement with Environmental Protection Agency (EPA).

FY14

Sedalia, MO

$5,368

We agreed to an administrative penalty order from the State of Missouri under the Clean Water Act (CWA) for a broken potable water line resulting in a chlorinated water discharge.

FY14

Albertville, AL

$20,973

We agreed to an administrative penalty order from EPA Region 4, concerning an alleged violation of the CAA RMP program. A $19,284 SEP was part of the order.

FY14

New Holland, PA

$5,516

We agreed to a Commonwealth of Pennsylvania issued administrative penalty order for a violation of our CWA permit.

FY14

Harmony, NC

$305,000

A Joint Stipulation with EPA was entered in court concerning alleged violations of the CWA regarding a release from a containment area associated with the facility’s above-ground sludge storage tank.

FY14

Madison, NE

$16,000

We agreed to a State of Nebraska issued administrative penalty order under the CWA regarding two spills associated with the wastewater irrigation system.

FY15

Monett, MO

$320,000 penalty and fees

A Consent Judgment was filed in court with the State of Missouri regarding allegations that a feed additive affected the waste water treatment plant for the city of Monett resulting in a fish kill in violation of the CWA and hazardous waste rules. We also implemented a $220,000 SEP.

FY15

Traverse City, MI

$67,982

Hillshire Brands agreed to an administrative penalty order with EPA Region 5 for failing to properly permit the facility under the CAA.

FY15

New Holland, PA

$9,042

We agreed to an administrative penalty order with EPA Region 3 for failing to implement provisions of the CAA RMP program equipment requirements.

These statistics are representative of all U.S.-based facilities, excluding Cobb-Vantress.

FY13 and FY14 does not include Hillshire Brands operations.