Investment Rating - The report does not explicitly provide an investment rating for the industry analyzed Core Insights - The paper examines how suppliers adjust their decarbonization strategies in response to validated emission-reduction targets set by major customers, revealing that downstream climate pressure leads to both real and symbolic responses among suppliers [5][12][14] - High-emission suppliers tend to make substantial operational adjustments, reducing their emission intensity, while low-emission suppliers primarily increase their reliance on carbon offsets, often from lower-quality projects [19][21][22] Summary by Sections Introduction - The increasing adoption of climate commitments by large corporations necessitates suppliers to disclose emissions and adopt climate policies, yet the response of suppliers to such pressures remains unclear [12][13] Findings - Suppliers whose customers obtain Science Based Targets initiative (SBTi) approval are more likely to adopt their own climate targets, with an average reduction in emission intensity of 8.8% following customer target approval [15][62] - The use of carbon offsets increases significantly among suppliers after customer SBTi approval, with a 159% rise in offset intensity relative to industry peers [16][63] - High-emission suppliers show a 15% reduction in total emissions and a 19% decline in emission intensity, while low-emission suppliers exhibit a 267% increase in offset intensity without reducing total emissions [72][73] Offset Quality - Suppliers facing downstream pressure tend to retire lower-quality offsets, indicating a preference for quantity over quality in their compliance strategies [80] - Firms engaging in genuine emissions reductions tend to select higher-quality offsets, suggesting a distinction between symbolic compliance and substantive operational changes [80] Customer Target Announcements - Customer announcements of climate commitments, even without validation, lead to limited supplier responses, primarily resulting in symbolic adjustments rather than meaningful operational changes [85][89]

Core Insights - Tanmiah Food Company signed three Memorandums of Understanding (MoUs) with Schneider Electric, Strataphy, and Kayes Arabia to accelerate its decarbonization efforts and improve energy efficiency [1][3][4] - The initiatives are aligned with Saudi Arabia's Vision 2030 sustainability objectives, emphasizing the company's commitment to climate action [3][7] Group 1: Strategic Partnerships - The MoU with Schneider Electric focuses on developing a carbon inventory assessment and setting measurable emission reduction targets under the Science Based Targets initiative (SBTi) framework [4] - Collaboration with Strataphy will introduce geothermal cooling systems at Tanmiah's Shaqrah Facility, marking the region's first geothermal-cooled poultry operation [5] - The agreement with Kayes Arabia aims to convert diesel-powered equipment to Liquefied Petroleum Gas (LPG) systems, reducing carbon emissions and operational costs [6] Group 2: Technological Innovations - Tanmiah's Chief Strategy Officer presented innovative solutions involving IoT and AI in logistics and farming operations, along with successful trials of alternative locally grown feed [3] - The geothermal cooling system operates under Strataphy's Cooling as a Service (CaaS) model, providing a scalable, low-carbon solution for poultry production [5][10] Group 3: Company Overview - Tanmiah Food Company, established in 1962, is a leading provider of fresh poultry, processed proteins, and animal feed in the Middle East, operating 149 farms and multiple processing facilities [8][9] - The company emphasizes sustainability through initiatives such as planting a million trees and utilizing wastewater from its facilities [9]

Core Insights - Kalmar Corporation reported strong financial performance in the second quarter of 2025, with a resilient comparable operating profit margin of 13.1% and robust order intake despite geopolitical challenges [4][12][10] Financial Performance - Orders received increased by 20% year-on-year, totaling EUR 450 million, with strong growth in the Equipment segment, which saw a 28% increase [5][12][22] - Sales for the second quarter grew modestly by 1% to EUR 420 million, while the first half of 2025 saw a 4% decline in sales compared to the same period in 2024 [6][12][24] - Comparable operating profit amounted to EUR 54.9 million, reflecting a 5% increase from the previous year, with a comparable operating profit margin of 13.1% [6][12][26] - Cash flow from operations before finance items and taxes was EUR 21.9 million, with a strong cash conversion rate of 95% over the last twelve months [6][12][18] - Net debt decreased by 42% from EUR 157 million to EUR 91 million, resulting in a healthy leverage ratio of 0.4x [6][12][18] Strategic Initiatives - The company is focused on innovation and sustainability, with its eco portfolio representing 44% of total sales, which increased by 9% year-on-year [8][12][18] - Kalmar's commitment to sustainability is underscored by the approval of its science-based emissions reduction targets, aiming for net-zero by 2045 [8][12][10] - The Driving Excellence initiative has secured approximately EUR 16 million in annualized gross efficiency improvements during the first half of 2025 [6][12][10] Market Environment - Despite a strong performance, the global landscape remains volatile due to trade tensions and geopolitical uncertainties, particularly affecting demand in the Americas [7][12][10] - The demand environment was generally favorable, with strong growth in Europe and solid performance in the AMEA region, although the US market faced increased uncertainty [5][12][10] Future Outlook - Kalmar maintains its guidance for 2025, expecting a comparable operating profit margin above 12% [3][10] - The company emphasizes its strategic focus on customer proximity, sustainable innovations, and expanding its service offerings to drive future growth [15][12][10]