Freshpet, Inc. (FRPT) — ESG & Values Scores

Environment story

Freshpet discloses limited environmental metrics. Scope 1, 2, and 3 emissions are undisclosed; no net-zero target year is stated. The company acknowledges climate change physical and transition risks in risk factors but provides no quantified emissions data, mitigation targets, or renewable energy percentage. Water consumption is flagged as material input risk (livestock raising, crop growth, manufacturing) but no consumption data or conservation initiatives disclosed. AI manufacturing deployment presents unquantified energy footprint risk. No verified physical decarbonization infrastructure investments are documented. Absence of emissions disclosure and net-zero commitment triggers maximum penalties under rubric.

Criticisms on file

Undisclosed Scope 1, 2, 3 emissions and no net-zero target
Source: FRPT 10-K, Item 1A Risk Factors - Environmental Regulation and Environmental Risks; MD&A
Water consumption risk from livestock raising, crop growth, and manufacturing; drought/aquifer depletion exposure acknowledged but no mitigation disclosed
Source: FRPT 10-K, Item 1A Risk Factors - Adverse weather conditions, natural disasters, livestock disease
AI manufacturing technology deployment increases energy footprint; cybersecurity and data risks unquantified
Source: FRPT 10-K, Item 1A Risk Factors - Our increasing use of artificial intelligence technologies; Item 1C Cybersecurity
Heavy reliance on animal-derived protein inputs (meat, poultry); vulnerability to avian influenza and livestock disease outbreaks impacting supply and pricing
Source: FRPT 10-K, Item 1A Risk Factors - Outbreaks of animal diseases; The inputs, commodities and ingredients that we require

Disclosed initiatives

Environmental Compliance Monitoring

Company acknowledges Extended Producer Responsibility (EPR) regulations at international and state levels requiring annual reporting and fee payments.
Supply Chain Climate Risk Assessment

Risk factor disclosure indicates company monitoring of climate change impacts on ingredient availability (crops, livestock), water availability, and commodity costs. No mitigation strategy disclosed.

Social story

Freshpet reports no union coverage and no collective bargaining agreements; no evidence of union suppression or active labor disputes in past 24 months. CEO-to-median-worker pay ratio undisclosed; cannot assess against 200:1 threshold. Workforce and leadership diversity percentages are not disclosed; diversity program existence unconfirmed. Supply-chain human-rights audits are not documented; reliance on third-party suppliers (co-packers, distributors) for production and distribution introduces unmitigated labor-standard risks. Company acknowledges workforce recruitment and retention pressures but does not commit to living wage or modern slavery statement. Employee turnover rate undisclosed.

Criticisms on file

CEO-to-median-worker pay ratio undisclosed; cannot verify compliance with 200:1 threshold
Source: FRPT 10-K, MD&A; proxy materials not provided in source documents
Leadership and workforce diversity metrics undisclosed; no formal diversity program or supplier-diversity initiatives documented
Source: FRPT 10-K, Item 1A Risk Factors - Loss of key executive officers; no EEO-1 disclosure in provided materials
Supply-chain labor standards: company relies on third-party co-packers and distributors but does not disclose human-rights audit results or modern slavery statement
Source: FRPT 10-K, Item 1A Risk Factors - We rely on co-packers to provide our supply of certain products and distributors to sell some of our products
Distributor liquidation and transition in Q1 2025: accounts receivable write-off of undisclosed amount resulting from pet specialty distributor closure
Source: FRPT 10-K, MD&A - Non-GAAP Financial Measures reconciliation, footnote (b) Distributor transition costs
Product recall and product liability exposure: voluntary recall in June 2022; ongoing risk of contamination, mislabeling, and product liability claims
Source: FRPT 10-K, Item 1A Risk Factors - If our products are alleged to cause injury or illness

Disclosed initiatives

Workforce Expansion and Retention

Company acknowledges need to attract and retain qualified employees for Freshpet Kitchens and manufacturing operations. Recognizes competitive wage pressures and inflationary compensation pressures.
Cybersecurity Team and Training

Information security organization includes CISSP-certified professionals and advanced degree holders. Ongoing security awareness training and educational programs for employees.

Governance story

Freshpet has single-class share structure (no dual-class penalty applied). Board independence percentage undisclosed; cannot verify against 75% threshold. Lobbying expenditures are not disclosed. No active antitrust, consumer-safety, or financial-fraud regulatory proceedings are reported; however, shareholder activism defense engagement was incurred ($8.2M in 2023 per reconciliation). Cybersecurity governance is overseen by CIO reporting to CFO with Audit Committee oversight; no evidence of shareholder litigation blocking climate proposals. Legal proceedings summary states no material adverse claims expected. Section 382 NOL limitations documented but not a governance deduction item.

Criticisms on file

Board independence percentage undisclosed; cannot verify against 75% governance threshold
Source: FRPT 10-K, proxy materials not provided in source documents
Lobbying expenditures undisclosed; cannot assess alignment with climate regulation or consumer protection
Source: FRPT 10-K, MD&A; no lobbying disclosure statement in provided materials
Shareholder activism defense engagement: $8.2M in 2023 to defend against activist stockholder proposals and proxy contests; company acknowledges history of activist shareholder actions
Source: FRPT 10-K, Item 1A Risk Factors - Actions of activist stockholders; Adjusted EBITDA reconciliation 2023 data
Phillips litigation settlement: net settlement charges of $5.7M in 2025 for unspecified claims
Source: FRPT 10-K, MD&A - Non-GAAP reconciliation, footnote (c) Legal obligation; Item 3 Legal Proceedings
Potential Section 382 NOL limitation from future ownership changes affecting tax asset utilization of $391.1M federal and $275.4M state NOLs
Source: FRPT 10-K, Item 1A Risk Factors - We may be unable to use some or all of our net operating loss carryforwards

Disclosed initiatives

Cybersecurity Governance

CIO reports to CFO; Audit Committee provides oversight; no less than twice yearly updates to Audit Committee on cybersecurity risk management strategy. Board members have completed specialized director training on cybersecurity risk.
Incident Response Planning

Freshpet Incident Response Plan and Playbook created and tested through drills; defines roles, responsibilities, and Board notification protocols for cyber incidents.
Third-Party Cybersecurity Assessments

Controls tested by independent third parties; organization engages industry groups for best-practice awareness; vCISO partnership in place.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Freshpet, 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 Freshpet, Inc. in the app for interactive charts and portfolio building.

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