Darling Ingredients Inc. (DAR) — ESG & Values Scores

Environment story

Darling Ingredients shows mixed environmental performance. The company acknowledges climate and regulatory risks extensively in risk factors and MD&A, including exposure to physical climate impacts on raw material availability, evolving environmental regulations (CSRD, CSDDD, California SB 261/253), and GHG reduction mandates. However, no Scope 1, 2, or 3 emissions figures are disclosed in the 10-K. No net-zero target year is articulated. The company's Fuel Ingredients segment (including DGD Joint Venture) depends heavily on government renewable fuel incentives (RFS, LCFS, CFPC) rather than operational carbon cuts, creating greenwashing risk. Capital expenditures for environmental compliance totaled $89.7M in FY2025, but this reactive spending does not substitute for proactive emissions reductions. No verified renewable energy percentage for operations disclosed. Significant controversy: DGD Joint Venture experienced margin collapse in FY2025 due to transition from blender tax credit to producer tax credit and tariffs, indicating dependency on subsidies rather than genuine decarbonization. No material environmental litigation or toxic-waste controversies disclosed in the 10-K, but extensive regulatory compliance language suggests ongoing exposure.

Criticisms on file

Alleged sediment contamination in Newtown Creek, New York; EPA notices received regarding river sediment contamination. Potential CERCLA liability and cleanup costs.
Source: DAR 10-K Risk Factors section, Environmental Contamination Liability discussion
Heavy reliance on government renewable fuel subsidies (RFS, LCFS, CFPC) rather than operational carbon reductions. FY2025 DGD margin collapse due to transition from blender tax credit to producer tax credit and tariff impacts, signaling non-sustainable business model.
Source: DAR MD&A, Fuel Ingredients Segment discussion; Risk Factors - Our renewable energy businesses... are highly dependent on government programs
Climate change poses physical and transitional risks to operations: weather impacts on raw material availability, potential livestock production restrictions in jurisdictions with climate regulations, and water/resource scarcity. Company cannot predict scope of future environmental regulations.
Source: DAR 10-K Risk Factors - Seasonal factors and weather, including physical impacts of climate related changes; Climate Change section in MD&A
No disclosed Scope 1, 2, or 3 emissions targets or actual figures in 10-K; no net-zero commitment articulated; no renewable electricity percentage disclosed. Greenwashing risk: company emphasizes rendering-from-waste narrative without quantified GHG reduction metrics.
Source: DAR 10-K and MD&A; absence of emissions data

Disclosed initiatives

DGD Joint Venture Renewable Fuels Production

Converts animal fats, recycled greases, used cooking oil into renewable diesel and SAF; produces biogas from organic sludge and food waste; converts fallen stock into low-grade energy sources. As of FY2025, DGD is a 50% equity investment with Valero.

High renewable fuel output, but heavily dependent on RFS, LCFS, and CFPC government mandates and tax credits; FY2025 saw major margin compression due to credit policy changes and tariffs.
Black Soldier Fly Larvae Processing

Rearing and processing of black soldier fly larvae into specialty proteins and fats for animal feed and pet food in North America.

Emerging sustainability initiative; low operational carbon footprint vs. conventional rendering, but scale and volume impact unclear from 10-K.
Environmental Compliance Capital Expenditures

$89.7M spent in FY2025 on compliance with environmental regulations, including wastewater treatment facility upgrades and air/odor control.

Reactive compliance spend; does not constitute proactive emissions-reduction infrastructure.

Social story

Darling Ingredients reports a workforce of approximately 15,000 full-time employees globally as of January 3, 2026. The company emphasizes employee development, training programs (Darling Leadership Academy, Darling University), and inclusive workplace culture. Approximately 17% of North American employees are covered by collective bargaining agreements; approximately 66% of Darling Ingredients International employees are covered by various collective bargaining agreements. Management states relations with employees and representatives are 'satisfactory' with no current major strikes or union-suppression litigation disclosed. However, the 10-K does not disclose CEO-to-median-worker pay ratio, executive/board diversity percentages, turnover rates, or supply-chain human rights audits. No mention of living wage commitments, conflict minerals policies, or modern slavery statements. Without hard diversity and pay-equity data, social scoring relies on disclosure gaps and the absence of reported union conflicts. The company's rendering supply chain (animal by-products from slaughterhouses) presents indirect human rights exposure (worker safety in meat processing, labor conditions) but is not directly addressed in the filing.

Criticisms on file

No disclosed CEO-to-median-worker pay ratio, executive compensation breakdown, or pay-equity analysis in 10-K. Absence of data prevents assessment of pay disparity risk.
Source: DAR 10-K; absence of compensation disclosure
No disclosed executive or board diversity percentages (gender, race/ethnicity) in 10-K. Cannot assess leadership diversity against materiality standards.
Source: DAR 10-K; absence of diversity metrics
No disclosed workforce turnover rates, employee satisfaction surveys, or attrition benchmarks in 10-K.
Source: DAR 10-K; absence of turnover data
Supply chain human rights: Company's raw material sourcing (animal by-products from meat processors) indirectly exposes company to labor conditions in slaughterhouses and animal processing facilities. 10-K does not disclose supply-chain audits, living wage policies, or modern slavery statement.
Source: DAR 10-K Business Description; absence of supply-chain human rights due diligence

Disclosed initiatives

Employee Development and Training

Offers onboarding training, cybersecurity and business ethics instruction, customized role-based training, mentoring, career development programs. Leadership development includes Darling Leadership Academy, Darling University, and Darling Involve and Explore International Leadership Training covering communication, conflict resolution, inclusive leadership, performance management.

Broad skill-building and leadership pipeline; internal job posting before external advertisement. Educational assistance program for degree/certification pursuit.
Health and Safety Program

Strong emphasis on occupational health and safety including policies, training programs, self-audits, and workplace injury prevention.

Reduces worker injury and illness; reflects commitment to employee wellness, though no quantified safety metrics (TRIFR, LTIFR) disclosed.
Inclusive Workplace Culture

Company states commitment to inclusive, respectful workplace where employees can do best work and feel valued for contributions.

Cultural commitment, but without diversity targets or representation data, impact assessment limited.

Governance story

Darling Ingredients operates with a standard single-class share structure (no dual-class voting premium disclosed), which supports governance neutrality. The 10-K does not disclose board independence percentage or committee composition, creating opacity on governance robustness. The company is highly leveraged with $3.3 billion+ in total debt (Term A, 6% Notes, 5.25% Notes, 4.5% Notes), which constrains financial flexibility and increases creditor influence over strategy. No active antitrust, consumer-safety, or financial-fraud regulatory proceedings are disclosed as of the 10-K filing date. However, the company faces extensive environmental and food-safety regulatory obligations and has received EPA notices regarding sediment contamination in Newtown Creek, New York (CERCLA potential liability). The company's reliance on government renewable fuel subsidies (RFS, LCFS, CFPC) creates regulatory/political dependency risk. No specific lobbying expenditure disclosure is provided in the 10-K; company does not disclose whether it actively lobbies to weaken climate regulations or consumer protections. Lack of transparency on political engagement, board independence, and incentive alignment with shareholders represents governance gaps. The company cites compliance with all financial covenants under credit facilities and senior notes as of January 3, 2026.

Criticisms on file

No disclosed board independence percentage or committee composition in 10-K. Cannot assess whether board meets >75% independence threshold or has adequate audit/compensation/ESG committees.
Source: DAR 10-K; absence of board governance disclosure
No disclosed annual lobbying expenditure in 10-K. Cannot assess whether company actively lobbies against climate regulations, consumer-protection statutes, or food-safety requirements that would materially impair ESG performance.
Source: DAR 10-K; absence of lobbying disclosure
Heavy reliance on government renewable fuel subsidies (RFS, LCFS, CFPC) creates political/regulatory risk. Company does not disclose whether it engages in trade-association lobbying or political advocacy that may conflict with stated sustainability goals.
Source: DAR MD&A and Risk Factors - Our renewable energy businesses, including the DGD Joint Venture, are highly dependent on government programs
High leverage ($3.3B+ total debt) constrains financial flexibility and increases creditor influence. Company's ability to invest in sustainability or governance improvements may be subordinated to debt service and covenant compliance.
Source: DAR MD&A - Financing, Liquidity, and Capital Resources section
Potential CERCLA liability for Newtown Creek and river sediment contamination; EPA notices received. Final liability amount unknown; could result in material costs affecting financial condition.
Source: DAR 10-K Risk Factors - Our operations are subject to extensive and evolving environmental, health and safety laws

Disclosed initiatives

Regulatory Compliance Framework

Company maintains comprehensive compliance programs across FDA (FSMA, BSE Feed Rule, food safety), USDA (APHIS, FSIS), EPA (RFS, air/water), OSHA, and international agencies (EU, UK, Canada, Brazil, China, Australia). Facility registrations, inspections, certifications, and preventive controls implemented.

Proactive regulatory engagement; demonstrates commitment to legal compliance, but reactive rather than leadership stance on emerging regulations.
Financial Covenant Compliance

Company states compliance with all financial covenants under Amended Credit Agreement, 6% Notes, 5.25% Notes, and 4.5% Notes indentures as of January 3, 2026.

Manages leverage and creditor relationships; however, high indebtedness limits strategic flexibility and increases financial risk.
Risk Management and Internal Controls

Company references risk assessments for climate, regulatory, cybersecurity, and operational risks in MD&A and risk factors. FCPA compliance mentioned for international operations.

Demonstrates governance awareness of material risks, though 10-K does not disclose extent of internal control weaknesses or remediation status.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Darling Ingredients Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Darling Ingredients Inc. in the app for interactive charts and portfolio building.

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