Tyson Foods Inc. will release the first section of a five-part sustainability report beginning today -- starting with a look at its animal-welfare efforts.
Additional portions of the report, which will be released weekly, will center on corporate giving, environmental stewardship, product development and workforce. This is the company's first sustainability report since acquiring Hillshire Brands in 2014.
Releasing the report, the company said, is intended to highlight Tyson's "performance in an open, honest and understandable way."
"Fiscal 2015 was a year of progress for Tyson Foods but was not without challenges," Christine Daugherty, vice president of sustainable food production for Tyson Foods, said in a news release. "We're humble enough to admit we're not perfect and are working every day to strengthen our commitment to making sure the animals we depend on are treated properly."
Among the animal-welfare highlights cited by the company is its decision to phase out human antibiotics in its broiler chicken flocks by the end of September 2017. Tyson announced that decision in April, responding to pressure from customers and the U.S. Food and Drug Administration.
Tyson has been working since last year to reduce human antibiotics on its cattle, hog and turkey farms.
Tyson also is pledging to create a formal animal well-being policy, install third-party remote video to monitor live bird handling at its U.S. plants, and offer additional training for its contract farmers.
The Animal Legal Defense Fund filed a complaint with the Securities and Exchange Commission in September, claiming that Tyson was overstating its commitment to animal welfare to shareholders. A complaint was filed after a 21-day undercover investigation at a Tyson facility in Texas. An undercover investigation by Mercy for Animals, another animal-welfare group, led Tyson to cut ties with a Tennessee farm in August.
Companies like Tyson are facing additional scrutiny from customers when it comes to animal welfare. A 2015 Deloitte report on factors that influence customer purchases noted the importance of social impact and transparency is growing with consumers.
"The number of consumers reporting strong social impact preferences is small, but represents a loud and vocal group that can sway public opinion," the report says. Tyson shareholders voted down a proposal related to animal welfare at the company's annual meeting in February.
Green Century Capital Management asked Tyson to stop using gestation crates. The crates restrict movement of animals. Shareholder advisory firm Glass Lewis had urged support for the proposal, noting Tyson could be "placed at a financial disadvantage with respect to its ability to compete for contracts or supply certain pork customers and that increased disclosure of these risks would better allow shareholders to assess how the Company is addressing this issue."
Tyson said Tuesday that the sustainability report should signal that it is heeding the calls for additional responsibility and transparency.
"We recognize that today's consumers expect access to a new level of information so they know the food they buy is produced responsibly," Leigh Ann Johnston, director of sustainability for Tyson Foods, said in a news release.
Business on 03/16/2016