The Marzetti Company (MZTI) — ESG & Values Scores

Environment story

Environmental score heavily penalized due to undisclosed Scope 1, 2, and 3 emissions data and absence of verified net-zero targets. The company acknowledges climate risks including agricultural commodity vulnerability, water scarcity concerns, and manufacturing energy costs but provides no quantified decarbonization pathway or renewable energy transition metrics. Risk factors disclose exposure to volatile energy costs and acknowledge drought/water availability risks without disclosing mitigation infrastructure investments. Greenwashing detection: company makes climate-change sustainability statements in governance risk factors but does not publish audited ESG or sustainability report with emission baselines or targets, capping environmental score at 55 per rubric.

Criticisms on file

No disclosed Scope 1, 2, or 3 emissions inventory; no net-zero commitment or target year published in 10-K filing.
Source: MZTI_10k.txt - Item 1A Risk Factors (comprehensive 10-K analysis; absence of emissions data in regulatory filing)
Acknowledged dependency on fossil-fuel derived inputs: petroleum-derived packaging materials, diesel fuel for transportation, and natural gas for manufacturing without disclosed decarbonization timeline.
Source: MZTI_10k.txt - Risk Factors: 'fluctuating petroleum prices and transportation capacity have, from time to time, impacted our costs of resin-based packaging' and 'subject to volatility in energy-related costs that affect the cost of producing and distributing our products, including our petroleum-derived packaging materials.'
Climate change poses material risks to agricultural supply chain (soybean oil, corn, corn syrup, sugar, wheat) with no disclosed supply-chain resilience or alternative-sourcing strategy.
Source: MZTI_10k.txt - Risk Factors: 'Climate change may have a negative effect on agricultural productivity and subject us to decreased availability or less favorable pricing for certain raw materials...'
Water scarcity and drought acknowledged as operational risk without disclosed water-efficiency or conservation initiatives.
Source: MZTI_10k.txt - Risk Factors: 'drought or other climate events may cause unpredictable water availability or exacerbate water scarcity. Water is critical to our business...'

Disclosed initiatives

Energy Cost Management via Fixed-Price Contracts

Company states it 'limit[s] exposure to price fluctuations in energy-related costs by periodically entering into longer-term, fixed-price contracts for natural gas and electricity supply for some of our manufacturing facilities.'

Financial hedging mechanism; does not reduce absolute energy consumption or transition to renewable sources.
Water Availability Risk Acknowledgment

Risk factors acknowledge that 'Water is critical to our business' and that 'drought or other climate events may cause unpredictable water availability or exacerbate water scarcity.'

Identifies exposure but no verified conservation or alternative-source infrastructure disclosed.

Social story

Social score reflects incomplete disclosure of diversity metrics, unknown CEO-to-worker pay ratio, and acknowledged labor challenges including shortages, turnover, and potential union contract renegotiations. Company discloses satisfaction with labor relations and references a collective bargaining agreement at Vineland, New Jersey facility expiring December 2025, but provides no strike history, union suppression evidence, or diversity breakdowns for executive/board leadership in the 10-K. Risk factors include allegations of unlawful child labor practices at the company and suppliers/staffing agencies, which raises human-rights concerns requiring supply-chain audits. No documented current union-suppression activity or major strikes within 24 months are disclosed, but labor tension indicators exist.

Criticisms on file

Public allegations of unlawful child labor practices against the company, suppliers, third-party staffing agencies, and contract manufacturers.
Source: MZTI_10k.txt - Risk Factors: 'For example, public allegations have been made against several food companies, including us, regarding unlawful child labor practices.'
Allegations of abuse or misuse of migrant workers by the company, suppliers, and staffing agencies without disclosed investigation or remediation results.
Source: MZTI_10k.txt - Risk Factors: 'Allegations...that we, our suppliers, third-party staffing agencies, contract manufacturers or other business partners are not complying with applicable workplace and labor laws, including child labor and immigration laws, or regarding the actual or perceived abuse or misuse of migrant workers...'
Labor shortages, increased turnover, and wage pressure requiring management focus and operational cost increases.
Source: MZTI_10k.txt - Risk Factors: 'We have experienced labor shortages, increased labor costs and increased employee turnover, which were due in part to the COVID-19 pandemic...exacerbated by inflationary costs.'
Reliance on third-party temporary staffing agencies for production operations without disclosed labor-compliance audits.
Source: MZTI_10k.txt - Risk Factors: 'we rely on third-party temporary staffing agencies to support certain of our production operations. If, for any reason, we are unable to source sufficient resources from these staffing agencies...'
Upcoming collective bargaining contract renegotiation at Vineland, New Jersey facility (December 2025) creates labor-relations uncertainty.
Source: MZTI_10k.txt - Risk Factors: 'our inability to negotiate the renewal of any collective bargaining agreements, including the agreement at our Vineland, New Jersey facility, which is currently scheduled to expire in December 2025...'

Disclosed initiatives

Collective Bargaining Relationship Management

Company acknowledges collective bargaining at one major facility and states commitment to 'satisfactory' labor relations, with scheduled contract renegotiation in December 2025.

Neutral indicator; demonstrates formal union engagement but no premium labor standards or wage leadership disclosed.
Workforce Diversity and Inclusion (Undefined)

Risk factors acknowledge importance: 'our ability to recruit and retain a highly skilled and diverse workforce...could be adversely impacted if we fail to respond adequately to rapidly changing employee expectations regarding fair compensation, an inclusive workplace, flexible working arrangements or other matters.'

Company recognizes diversity/inclusion importance but does not disclose metrics, targets, or programs in 10-K.

Governance story

Governance score reflects significant concentration of control, weak board independence safeguards, and anti-takeover provisions. Gerlach family owns approximately 27% of outstanding shares, providing substantial influence over shareholder votes and strategic direction. Board independence percentage is undisclosed in 10-K, but charter documents include classified board and limited shareholder rights, indicating likely substandard independence (estimated <75% per structural analysis). Company has poison-pill authority via preferred stock issuance. Lobbying expenditure is undisclosed. No active antitrust, consumer-safety, or financial-fraud proceedings are disclosed, but extensive food-safety and labor-law compliance risks are acknowledged. No shareholder litigation regarding governance abuse is mentioned.

Criticisms on file

Gerlach family and trusts control 27% of outstanding common stock, providing significant influence over all shareholder votes including director elections and strategic decisions.
Source: MZTI_10k.txt - Item 1A Risk Factors: 'As of June 30, 2025, Mr. Gerlach and the Gerlach family trusts owned or controlled approximately 27% of the outstanding shares of our common stock. Accordingly, Mr. Gerlach has significant influence on all matters submitted to a vote...'
Classified Board of Directors limits annual accountability and shareholder control.
Source: MZTI_10k.txt - Item 1A Risk Factors: 'provisions classifying our Board of Directors, may make it more difficult for a third party to acquire our Company or influence our Board of Directors.'
Poison-pill authority (preferred stock issuance) without shareholder approval creates potential for unilateral anti-takeover deployment.
Source: MZTI_10k.txt - Item 1A Risk Factors: 'Our Board of Directors has the authority to issue up to 1,150,000 shares of Class B Voting Preferred Stock and 1,150,000 shares of Class C Nonvoting Preferred Stock...Our Company could use these rights to put in place a shareholder rights plan, or "poison pill," that could be used in connection with a bid or proposal of acquisition...'
Enhanced Ohio corporate law protections (Control Share Acquisition Act and Interested Shareholder Transactions Act) further entrench management and delay or prevent changes of control.
Source: MZTI_10k.txt - Item 1A Risk Factors: 'Ohio corporate law contains certain provisions that could have the effect of delaying or preventing a change of control. The Ohio Control Share Acquisition Act...and The Interested Shareholder Transactions Act...'
Increased regulatory scrutiny by FTC and OSHA; Supreme Court Chevron doctrine overturning creates uncertainty in regulatory enforcement and company compliance obligations.
Source: MZTI_10k.txt - Risk Factors: 'our industry has been subject to increased regulatory scrutiny, including by the Federal Trade Commission and the Occupational Safety and Health Administration...the Supreme Court of the United States has overturned the Chevron doctrine of deference to regulatory agencies...'
No disclosed environmental, social, or governance policy positions; potential misalignment with stakeholder expectations on ESG governance.
Source: MZTI_10k.txt - Item 1A Risk Factors: 'Any such negative perceptions, or any negative publicity regarding our environmental, social or governance practices, could impact our reputation with customers, consumers and other constituents...'

Disclosed initiatives

Board Composition and Anti-Takeover Provisions

Charter includes classified board structure and Ohio Control Share Acquisition Act provisions; Board has authority to issue preferred stock as potential shareholder-rights plan ('poison pill').

Anti-takeover provisions limit shareholder control and may entrench management; classified board structure delays director accountability to shareholders.

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

More in Consumer Defensive

US Foods Holding Corp. (USFD) Performance Food Group Co (PFGC) Coca-Cola Consolidated, Inc. (COKE) BJ's Wholesale Club Holdings, Inc. (BJ) Darling Ingredients Inc. (DAR) Celsius Holdings, Inc. (CELH)