Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Supply Chain Partnerships
• Supporting Local Communities
• Employee Well-being
• Sustainable Products

Environmental Achievements

• Reduced overall Specialty Coffee Business Unit energy metric by 19.3% compared to fiscal year 2009
• Reduced waste metric in Vermont operations by 16.9% exceeding a 10% reduction goal
• Processed and recycled 350 tons of material from returned brewers
• Offset 100% of estimated greenhouse gas emissions

Social Achievements

• Increased philanthropic giving from $3.7 million to $6.9 million
• Expanded work on food security in coffee-growing communities
• Increased employee volunteer hours by 56% to 15,000 hours
• Domestic grantmaking increased by over 75% to $1.7 million

Governance Achievements

• Established Corporate Social Responsibility Committee on the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Food insecurity in coffee-growing communities
• Environmental impact of single-serve packaging (K-Cup packs)
• Environmental impact of returned Keurig brewers
• Rapid growth of the business increasing supply chain complexity

Mitigation Strategies

• Funding food security projects in multiple countries
• Pilot program for K-Cup pack take-back and disposal
• Returns Management Initiative pilot program for returned brewers
• Examining supply chain to identify opportunities for efficiency and sustainable practices

Supply Chain Management

Supplier Audits: On-site assessments and audits conducted

Responsible Procurement

• Supplier Guidelines outlining legal, compliance, labor, and environmental requirements
• Self-assessment questionnaires for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather patterns affecting coffee growing seasons

Reporting Standards

Frameworks Used: GRI G3

Third-party Assurance: Independent audits of financial statements, verification of coffee purchases by accreditation bodies

Sustainable Products & Innovation

• Ecotainer cups and lids made with renewable biopolymers

Awards & Recognition

• McDonald’s 2010 Global Best of Sustainable Supply
• CRO Magazine’s 2010 Responsible CEO of the Year
• Forbes 200 Best Small Companies
• The Boston Globe Top Places to Work
• Fortune Magazine’s Global 100 Fastest-Growing Companies

Environmental Metrics

ESG Focus Areas

• Climate Change and Energy Use
• Water Use and Stewardship
• Waste and Packaging

Environmental Achievements

• 14 percent companywide reduction in equivalent CO2 emissions from manufacturing due to energy-efficient lighting and improved lighting controls.
• 15 percent reduction in total electrical use in warehouse and distribution sites since 2012.
• 6 percent reduction in electricity used in corporate offices since 2012.
• More than 215 million pounds of CO2 removed from the atmosphere by replacing older vending machines and coolers with Energy Star-rated equipment.
• Nearly 35 percent reduction in third-party logistics equivalent CO2 emissions since joining SmartWay in 2010.
• 85 percent of manufacturing solid waste recycled in 2016.

Social Achievements

• Launched the “We Are All One of a Kind” diversity campaign.
• 35 percent reduction in lost-time frequency rate since 2009.
• Achieved Let’s Play initiative goal of providing 10 million children across North America with new opportunities to play and be active by 2017 (exceeded goal).

Governance Achievements

• Published a new Supplier Code of Conduct in 2016.
• 99 percent of direct suppliers signed the new Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Declines in production volume offsetting efficiency gains in energy use.
• Progress on reducing water consumption has been flat to negative due to production volume changes and inventory management improvements.
• Gap in achieving 90 percent recycling of manufacturing waste.

Mitigation Strategies

• Continuous improvement in lighting, cooling, heating and production-line operations.
• Conversion of refrigeration systems from ammonia-reliant to glycol-based systems.
• Applying RCI mindset to waste disposal, including waste audits and a single platform for tracking and managing waste.
• Ongoing maintenance and facilities improvements, system upgrades on production lines, and companywide training on best practices in water usage.
• Moving to dry lubricants in packaging machinery, minimizing water use from rinsing, and employing warmer filling technologies.

Supply Chain Management

Supplier Audits: 99% of direct suppliers signed the new Supplier Code of Conduct.

Responsible Procurement

• Supplier Code of Conduct outlining expectations for ethical and legal behavior, environmental soundness, conflict mineral avoidance, safety and quality standards, and responsible marketing.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Third-party Assurance: Trucost (moderate-level assurance for Scope 1 and 2 emissions and a portion of water consumption)

Sustainable Products & Innovation

• Schweppes Sparkling Water
• Canada Dry Sparkling Waters
• Core Hydration
• High Brew ready-to-drink cold-brew coffee
• Snapple Straight Up Teas

Awards & Recognition

• The Civic 50 (leader in consumer staples sector)
• Diversity MBA Magazine’s “50 Out Front: Best Places to Work for Women and Diverse Managers, Best in Class”

Environmental Metrics

ESG Focus Areas

• Supply Chain
• Environment
• Health & Wellbeing
• Communities
• Workplace

Environmental Achievements

• Achieved zero waste to landfill in hot beverage network
• 88% of total waste kept out of landfills
• 87% of packaging recyclable
• 47% of energy from renewable sources
• Improved water use efficiency by 4.4%
• Launched Every Bottle Back initiative with $100 million industry investment in recycling

Social Achievements

• Responsibly sourced 65% of coffee and 63% of brewers
• Engaged over 783,000 people in supply chain to improve their lives
• Exceeded goal by providing play opportunities to 14.2 million children and families
• Launched KDP Values with employee input
• Joined B4IG coalition for human rights and inclusive workplaces
• Added 7 new low-calorie beverage options

Governance Achievements

• Rolled out new KDP Supplier Code of Conduct
• Developed new science-based carbon reduction goals validated by SBTi

Climate Goals & Targets

Environmental Challenges

• Supply chain complexities and challenges
• Climate change impacts on coffee production
• Water scarcity in some operating areas
• Need to improve recycling infrastructure and consumer behavior

Mitigation Strategies

• Product-specific standards and supplier code of conduct
• Investments in climate-resilient coffee varietals and water stewardship projects
• Partnerships to improve recycling infrastructure and consumer education
• Water optimization team and corporate water policy

Supply Chain Management

Responsible Procurement

• KDP Supplier Code of Conduct
• Product-specific standards for coffee and brewers

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme weather events

Transition Risks

• Regulatory changes
• Shifting consumer preferences

Opportunities

• Development of sustainable packaging and renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards Core option

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

Sustainable Products & Innovation

• Recyclable K-Cup pods
• Low-calorie beverage options

Awards & Recognition

• Largest buyer of Fair Trade coffee
• Points of Light Civic 50 honoree

Environmental Metrics

ESG Focus Areas

• Environment
• Supply Chain
• Health & Well-being
• People & Communities
• Governance

Environmental Achievements

• Converted all K-Cup pods to recyclable polypropylene plastic
• Powered total hot production network with 100% renewable electricity
• Achieved 90% recyclable packaging
• Achieved 22% post-consumer recycled content across packaging portfolio
• Achieved 2% post-consumer recycled content across plastic packaging portfolio
• Achieved 1% virgin plastic reduction across plastic packaging portfolio
• Achieved 92% waste diverted from landfill

Social Achievements

• Achieved 100% responsibly sourced coffee
• Engaged 1 million+ people in coffee supply chain to improve their lives
• Launched eight new Employee Resource Groups
• Implemented robust Employee Health and Safety Program at onset of COVID-19
• Donated 4 million beverages and thousands of brewers in support of frontline healthcare workers

Governance Achievements

• Enhanced the structure and diversity of our Board, including creating the position of Lead Independent Director

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted operations and supply chains
• Supply chain disruptions due to natural disasters (hurricanes)
• Challenges in achieving 100% responsibly sourced brewers due to COVID-19 related disruptions
• Inadequate investment and inconsistent regulation in U.S. recycling systems

Mitigation Strategies

• Developed a 6-Point Employee Health and Safety Program
• Mobilized humanitarian support to help impacted farmers and communities
• Implemented remediation initiatives after audits of contract manufacturers
• Investing in recycling infrastructure and industry coalitions (Polypropylene Recycling Coalition, Every Bottle Back)

Supply Chain Management

Supplier Audits: See Data Summary for details

Responsible Procurement

• Responsible sourcing of coffee, cocoa, corn, apples, and other priority inputs; Supplier Code of Conduct; RBA Code of Conduct for brewers; third-party certifications

Climate-Related Risks & Opportunities

Physical Risks

• Drought, floods

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products; increased use of recycled content

Reporting Standards

Frameworks Used: GRI Standards Core option, SASB, TCFD, UN SDGs

Certifications: LEEDv4 BD+C

Third-party Assurance: ERM Certification and Verification Services

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Keurig brewers made with recycled content; Core Hydration, Snapple, and Aguafiel Natural bottles made with 100% recycled plastic; recyclable K-Cup pods

Awards & Recognition

• See report for details

Environmental Metrics

ESG Focus Areas

• Environment
• Supply Chain
• Health & Well-being
• People & Communities
• Governance

Environmental Achievements

• Responsibly sourced 100% of coffee, cocoa, and brewers.
• Reduced virgin plastic use by incorporating more recycled plastic and redesigning packaging.
• Achieved a cumulative reduction in Scope 3 emissions from baseline due to transitioning to lower-emission packaging materials.
• Improved water use efficiency by 7%.

Social Achievements

• Expanded offerings of and access to better-for-you products.
• Advanced diversity and inclusion efforts.
• Increased female representation in Director and above positions to 28%.
• Continued community engagement and giving back to communities.

Governance Achievements

• Implemented a suite of policies and programs to promote ethical behavior and compliance.
• Established a 24/7 "Speaking Up" hotline for reporting misconduct.
• Conducted a formal ESG materiality assessment.

Climate Goals & Targets

Environmental Challenges

• Unprecedented supply chain challenges for critical inputs during high consumer demand.
• COVID-19 impacts and shipping delays affecting coffee and cocoa sourcing.
• Inadequate investment and a patchwork of regulations in U.S. recycling systems.

Mitigation Strategies

• Incorporated more post-consumer recycled content, redesigned packaging, and explored alternative materials.
• Expanded the scope of auditing program to include a larger portion of brewer component suppliers and high-risk suppliers of apple juice concentrate.
• Supported smart policy solutions focused on efficient and equitable ways to increase material recovery.
• Co-founded The Recycling Partnership’s Polypropylene Recycling Coalition and the American Beverage Association’s Every Bottle Back program.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• KDP Supplier Code of Conduct
• Third-party sustainable sourcing programs or standards
• Supplier Diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Drought and water issues
• Stress on energy systems

Transition Risks

• Regulatory changes
• Market shifts
• Carbon tax

Opportunities

• Development of energy-efficient products
• Transition to renewable energy
• Fleet electrification
• Regenerative Agriculture

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Standards, TCFD

Certifications: Null

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Core Hydration bottles made of 100% recycled plastic
• K-Cup pods with easy-peel lid
• Fully recyclable and compostable paper bottle (prototype)

Awards & Recognition

• Canada’s Top 100 Employers
• CDP Supplier Engagement Leader
• Food Engineering Plant of the Year
• Human Rights Campaign Best Places to Work for LGBTQ Equality
• Forbes Halo 100
• Newsweek America’s Most Responsible Companies
• WSJ Management Top 250
• Canada’s Top Employers for Young People
• Empresa Socialmente Responsable
• Fortune World’s Most Admired Companies
• Reuters Events Responsible Business Awards

Environmental Metrics

ESG Focus Areas

• Climate Action
• Circular Economy
• Responsible Sourcing
• Health & Well-being
• Diversity & Inclusion
• Ethical Business Practices
• Community Engagement

Environmental Achievements

• Increased renewable energy share to 74% of electricity use
• Reduced virgin plastic use by 11%
• Reached 18% post-consumer recycled content in plastic packaging
• Supported regenerative agriculture and conservation on 11,296 acres of land

Social Achievements

• Increased female representation in Director+ positions by 3 percentage points
• Increased people of color representation in Director+ positions by 1 percentage point
• Completed a successful retail pilot program improving access to better-for-you beverages
• Supported employee well-being through enhanced benefits and programs

Governance Achievements

• Introduced an enhanced enterprise-wide annual compliance training program
• Published a new Responsible Marketing Policy
• Achieved Full Member status in the Responsible Business Alliance (RBA)

Climate Goals & Targets

Environmental Challenges

• Mitigating and adapting to climate change impacts
• Mapping a feasible glidepath to fleet decarbonization
• Minimizing excess water use while maintaining product quality standards
• Navigating the lack of uniformity in recycling infrastructure

Mitigation Strategies

• Exploring new technology and electric heavy-duty trucks
• Deploying innovative water treatment infrastructure
• Accelerating the roll-out of innovative packaging and reuse solutions
• Collaborating to secure federal packaging collection policy

Supply Chain Management

Supplier Audits: 33 audits conducted for Tier 1/Tier 2 suppliers in 2022

Responsible Procurement

• Supplier Code of Conduct
• Third-party certification and verification programs (coffee and cocoa)
• KDP Supplier Rating System (factory-based inputs)

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns disrupting ingredient supply chains
• Heat stress and drought impacting communities

Transition Risks

• Carbon taxes influencing production and distribution

Opportunities

• Advance regenerative agriculture practices
• Invest in watershed health
• Explore fleet electrification and low carbon technologies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

KDP's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• Core Hydration bottles made from 100% recycled PET plastic
• Lightweight K-Cup pods
• Paper bottle development

Awards & Recognition

• Canada’s Top 100 Employers
• CDP Supplier Engagement Leader
• Forbes Best Employers for Women
• Newsweek America’s Greatest Workplaces for Diversity
• Newsweek America’s Most Responsible Companies
• Fortune World’s Most Admired Companies
• Newsweek America’s Most Trustworthy Companies
• Empresa Socialmente Responsable (ESR)

Environmental Metrics

ESG Focus Areas

• Environment
• Supply Chain
• Health & Well-Being
• People & Communities
• Governance

Environmental Achievements

• 21% reduction in Scope 1 and 2 emissions since 2018
• 12% reduction in Scope 3 emissions in select categories since 2018
• 15% virgin plastic reduction across packaging portfolio since 2019
• 83% of electricity from renewable sources

Social Achievements

• 100% responsible sourcing of coffee and cocoa
• 59% of product portfolio providing positive hydration
• 32% female representation in Director+ roles (vs. 26% in 2020)
• 19% people of color representation in Director+ roles (vs. 17% in 2020)
• Community engagement partnership with Red Cross

Governance Achievements

• Strong governance structures to foster integrity, transparency, and responsibility
• Board diversity: 55% independent, 36% women, 18% racially or ethnically diverse
• Enterprise-wide annual compliance training program

Climate Goals & Targets

Environmental Challenges

• Maintaining business growth while mitigating climate change
• Evolving policy and regulatory landscape
• Fleet decarbonization challenges
• Balancing water use efficiency with product quality standards
• Inconsistent recycling infrastructure
• Expanding equitable access to nutrition
• Combating misinformation about ingredients and product safety
• Competing for talent and managing employee turnover

Mitigation Strategies

• Engaging bottlers and suppliers to set science-based targets
• Investing in water treatment technology
• Exploring electric fleet expansion and low-carbon technologies
• Investing in water replenishment projects
• Accelerating innovative packaging solutions
• Collaborating to improve recycling infrastructure
• Expanding distribution of better-for-you beverages
• Providing transparent product information
• Refining recruitment processes and offering employee well-being initiatives

Supply Chain Management

Supplier Audits: 77 audits conducted in 2023 for Tier 1 and Tier 2 brewer suppliers

Responsible Procurement

• Supplier Code of Conduct
• Responsible sourcing strategies for priority inputs (coffee, cocoa, etc.)
• Supplier Rating System
• Regenerative agriculture and conservation initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns disrupting ingredient supply chains
• Heat stress and drought impacting water availability
• Risks to critical infrastructure

Transition Risks

• Carbon taxes influencing production and distribution

Opportunities

• Advance regenerative agriculture practices
• Invest in watershed health
• Explore fleet electrification and low-carbon technologies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• Not disclosed

Aligned with seven UN SDGs most relevant to the business

Sustainable Products & Innovation

• K-Rounds plastic-and aluminum-free coffee pods
• Bai and Core Hydration+ products in 100% recycled plastic bottles

Awards & Recognition

• Canada’s Top 100 Employers
• CDP Supplier Engagement Leader
• Forbes America’s Best Employers for Women
• Human Rights Campaign Foundation Equality 100 Winner
• Mexico Center of Philanthropy (ESR)’s Best Socially Responsible Companies
• Newsweek America’s Most Responsible Companies
• TIME World’s Best Companies
• USA Today America’s Climate Leaders