Taking it Step by Step — Our CSRD Compliance Journey

At Kemin, sustainability has always been central to our mission. As a biotechnology company focused on animal health and nutrition, we are committed to safeguarding the planet's natural resources and reducing our environmental impact. We aim to protect the global food supply chain for future generations, ensuring long-term sustainability.

In fact, our mission means we are working towards integrating sustainability into every part of our operations. Today, this commitment includes compliance with the European Union’s Corporate Sustainability Reporting Directive (CSRD). It also reflects our stakeholders' growing expectations and the increasing need for greater transparency in Environmental, Social, and Governance (ESG) reporting.

Our path to CSRD compliance at Kemin Animal Nutrition & Health began with a thorough assessment of the directive's requirements, carefully examining how they align with our ongoing sustainability initiatives. Recognising the growing importance of transparent ESG reporting, we conducted a gap analysis to identify areas for improvement and ensure that our reporting practices were up to standard.

Moreover, we formed a cross-functional team, bringing together diverse expertise from across the organisation to drive our CSRD efforts. We also partnered with external consultants to gain valuable insights and ensure that our approach adhered to industry best practices.

We have made considerable progress in integrating CSRD principles into our business operations. For example, we have built a strong data collection and reporting framework, ensuring that our sustainability metrics are consistent, transparent, and reliable. We’re also developing our ESG disclosures and have begun third-party assurance processes to verify the accuracy of our data.

One of our key focuses has been aligning with the CSRD’s double materiality principle. This requires us to evaluate both the impact of our activities on the environment and society and the influence of sustainability topics on our business.

Although our CSRD journey has not been without challenges, particularly in setting ambitious greenhouse gas reduction targets, we are taking meaningful steps to implement energy efficiency measures and source electricity from renewable energy providers. We are also advancing our sustainable sourcing strategy, finding the balance between gathering sufficient data and minimising the administrative burden on our partners.

Looking ahead, we will continue to enhance our reporting processes and expand our data collection to meet the full requirements of the CSRD. We also plan to strengthen our stakeholder engagement processes to ensure we accurately report material issues.

We are investing in training and development across the organisation, equipping our teams to contribute meaningfully to our sustainability reporting efforts and pique our customers' interest in sustainability topics. We will also continue collaborating with external partners to ensure we stay ahead of industry standards and maintain our strong commitment to sustainability.

Our work on conducting Life Cycle Assessments (LCAs) for our products has been imperative to our sustainability efforts and alignment with the CSRD. These LCAs give us insights into how to make our current solutions more sustainable and develop new ones with sustainability built in from the start. To date, we have completed LCAs for 50 of our products and are committed to completing LCAs for all our products by the end of 2025, with another 20 expected to be finalised this year.

Throughout our CSRD journey, we've learned several important lessons. Early preparation and cross-functional collaboration have been essential in building an effective and comprehensive reporting system. The value of third-party assurance became clear to us, as it builds trust with our stakeholders and enhances the credibility of our reporting.

Additionally, we've realised the significance of a strong data management system. This system is crucial for streamlining data collection and reporting and ensuring consistency and accuracy in our sustainability disclosures.

The Benefits of CSRD Compliance

Complying with the CSRD brings various benefits to us at Kemin, in addition to the huge environmental benefits.

CSRD compliance helps drive innovation, encouraging the development of sustainable product lines that meet the growing demand for environmentally friendly and socially responsible products. It also contributes to operational efficiency, as our initiatives to improve energy and material use often lead to cost savings and reduced environmental impact.

As a company working towards improved sustainability, our efforts make us an attractive employer, especially for young talent who value organisations committed to social and environmental responsibility. Our efforts also enhance our reputation with our customers — customers are grateful for our prioritisation of sustainability and know that they can come to us as an expert and trusted partner.

Lastly, our commitment to the CSRD means we can also streamline obtaining and renewing environmental permits and licenses, ensuring smoother operations and fewer regulatory challenges.

At Kemin, we see CSRD compliance not only as a regulatory requirement but also as an opportunity to continue positively impacting the world and become a leader in sustainability in our industry. Through transparency, collaboration, and innovation, we know our sustainability journey will create long-lasting benefits for the planet, business, employees, customers, and, ultimately, all stakeholders.