The Kraft Heinz Company has released its 2022 Environmental Social Governance (“ESG”) Report, titled “Together at the Table,” outlining progress across its ESG priorities during the 2021 calendar year. Kraft Heinz continues to accelerate toward its global ESG goals and diversity, inclusion, and belonging aspirations (“Aspirations”), thanks to future-focused innovations and key collaborations with employees, nonprofit organizations, and ingredient and packaging suppliers.
The Kraft Heinz ESG strategy is designed to prioritize the issues that matter most to the Company’s business and stakeholders. The Report highlights progress across three key pillars – Healthy Living & Community Support, Environmental Stewardship and Responsible Sourcing – that help the Company build value among its broad set of stakeholders by incorporating responsible business practices at each stage of its value chain.
“The food industry has seen countless challenges in the last two years,” said Miguel Patricio, Kraft Heinz CEO and Chair of the Board of Directors. “It is during these challenging moments when true innovation happens, and collaborations are most important. Working with our many partners, we are developing solutions to foster a more inclusive workforce, address climate challenges, and combat food insecurity. Now more than ever, it is critical that businesses like ours take a leadership role in addressing the environmental and social issues that affect all of us around the world.”
Progress Across Our Three ESG Pillars
Healthy Living and Community Support
Kraft Heinz is committed to diversity, inclusion, and belonging (“DI&B”) and improving the health and wellness of consumers, employees, and people in need around the world.
- DI&B Aspirations: In 2021, Kraft Heinz strengthened its commitment to an inclusive culture and diverse workforce by setting 2025 DI&B aspirations. The Company aims to achieve gender parity within global management positions and to increase representation of people of color in U.S. salaried positions to 30% by 2025. In 2021, Kraft Heinz increased representation of women in global management positions and people of color in U.S. salaried positions by two percentage points each (39% vs. 37% in 2020 and 26% vs. 24% in 2020, respectively), which is on track for the Company’s achievement of its global Aspirations by 2025.
- Efforts to Alleviate Global Hunger: Since 2020, Kraft Heinz has made significant progress toward its goal to provide 1.5 billion meals to people in need by 2025. In 2021, the Company provided approximately 440 million meals to people in need, bringing the total number of meals provided to nearly 1.2 billion since 2016. The Kraft Heinz Foundation committed $12 million over three years to support Rise Against Hunger’s global efforts to end world hunger through sustainable agriculture and food assistance programs.
- New Nutrition- and Consumer-Conscious Products: Kraft Heinz continues to create innovations to satisfy consumer demand for new, nutrition-conscious products, including increasing the number of plant-based offerings.
- In 2021, the Company launched various plant-based products, including three varieties of Heinz Beanz Burgerz, a fully vegan mayonnaise, and a vegan alternative to Heinz Salad Cream.
- The Company also launched Master Low Salt Weijixian Soy Sauce, Heinz Veg Hoops with 30% extra vegetables, and lactose-free Philadelphia Original Brick Cream Cheese.
To address ongoing environmental challenges, Kraft Heinz continues to implement energy, carbon, water, packaging, and waste solutions across its operational footprint.
- Commitment to Net-Zero Emissions: Kraft Heinz committed to achieve net-zero greenhouse gas emissions across its operational footprint (Scope 1 and 2) and global supply chain (Scope 3) by 2050, with a near-term goal of halving emissions by 2030.
- In 2021, Kraft Heinz made significant progress against its goal to reduce waste to landfill intensity by 20% across its manufacturing facilities by 2025. At the end of 2021, the Company had achieved a waste to landfill intensity reduction of nearly 15%.
- Sustainable Packaging: Kraft Heinz continues to drive progress toward its goal of using 100% recyclable, reusable, or compostable packaging by 2025. Through 2021, approximately 84% of the Company’s global packaging portfolio met this goal.
- As part of this broader goal, Kraft Heinz set out to create a fully circular Heinz Tomato Ketchup bottle in Europe by 2022. The final piece of this project was developing a recyclable cap. Teams across the Company created 45 unique designs, printing each in-house using a state-of-the-art 3D printer, to develop the recyclable solution for the Heinz Tomato Ketchup squeeze bottle. The bottle is expected to be rolled out globally, starting in Europe, by the end of 2022.
- The Company is developing and testing a fiber-based microwavable cup for Kraft Mac and Cheese. The innovative cup, slated for release by the end of 2022, will also eliminate the plastic label through new direct-print technology.
“Innovations like the fully circular Heinz Tomato Ketchup bottle and new plant-based products like vegan mayonnaise are great examples of how Kraft Heinz is working to lead the future of food,” said Rashida La Lande, EVP, Global General Counsel, and Chief Sustainability and Corporate Affairs Officer at Kraft Heinz. “This work demonstrates the potential that lies at the intersection of doing what’s good for the planet and addressing important consumer needs at the same time.”
To meet its sustainable product and agricultural goals, Kraft Heinz is incorporating responsible choices throughout its supply chain.
- Supplier Diversity Program: To support an inclusive economy, in 2021 Kraft Heinz launched its Supplier Diversity Program, committing to partner with suppliers that are majority-owned, -operated, and -managed by women, people of color, LGBTQ+ people, people with disabilities, or veterans, with a goal of tripling the Company’s spend with such companies by 2025.
- Sustainable Agricultural Practices: Kraft Heinz is working in partnership with growers to implement sustainable agricultural practices and take significant steps to strengthen its Sustainable Agricultural Practices Manual (“SAP Manual”). The Company’s SAP Manual was benchmarked against the Sustainable Agriculture Initiative Platform’s Farm Sustainability Assessment 3.0, receiving Silver Level status in 2021. Kraft Heinz also launched its SAP Manual in 2021 with suppliers and growers in Spain and California with the goal of sustainably sourcing 100% of tomatoes in Heinz Tomato Ketchup by 2025.
The 2022 ESG Report was prepared using the Global Reporting Initiative (“GRI”) ESG reporting standard and in alignment with the general principles of the Sustainability Accounting Standards Board (“SASB”) for food and beverage companies, as well as the Task Force on Climate-related Financial Disclosure (“TCFD”).
More information on Kraft Heinz’s progress and commitments, as well as separate downloads of its GRI, SASB, and TCFD indexes and disclosures, are available at www.kraftheinzcompany.com/esg.