Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Sourcing
• Climate Smart Agriculture
• Food Security
• Farmer Livelihoods
• Pollinator Health
• Biodiversity
• Deforestation
• Post-Harvest Loss
• Food Waste
• Water Stewardship
• Soil Health
• Greenhouse Gas Emissions
• Human Rights
• Animal Welfare

Environmental Achievements

• 4.7% reduction in food waste within Kellogg manufacturing operations
• Supported soil health practices, watershed health and biodiversity through participation in Regional Conservation Partnership Programs (RCPP)
• Implemented sustainable farming practices such as drip irrigation and mechanical harvesting to reduce waste (California Raisins)
• Increased biodiversity by planting wildlife and pollinator margins (European Wheat)
• Reduced pesticide use through integrated pest management and cover cropping
• Planted wildflower fields and flowering cover crops to benefit pollinators (Natural Heritage Initiative)

Social Achievements

• Reached over 299,000 farmers through programs, research and technical assistance supporting Climate Smart Agriculture practices
• Supported 500,000 farmers, their families, and communities with Climate Smart Agriculture practices (target by 2025)
• Partnered with ASDA, Cargill and CARE to address barriers faced by women in cocoa farming communities
• Provided training sessions on strawberry seedling cultivating, pesticide control, and food safety control (Strawberries)
• Improved farming methods that improved yields and boosted incomes for over 1,200 smallholder potato farmers in Bangladesh
• Improved crop yields and increased income for smallholder and women farmers through agricultural training (Mexico Maize)

Governance Achievements

• Commitment to source 100% cage-free eggs by 2025
• Commitment to source 100% responsible soy
• Commitment to source cocoa ingredients through direct investment focused on improving farmer livelihoods and climate-smart agriculture practices
• Commitment to source in-scope vanilla ingredients through direct investment focused on improving farmer livelihoods and climate-smart agriculture practices
• Commitment to help achieve zero net deforestation by 2020
• Commitment to maintain 100% of timber-based packaging sourced from recycled content or certified sustainable resources

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on smallholder farmers
• Post-harvest loss and food waste
• Deforestation in supply chains
• Human rights risks in cocoa and sugar cane supply chains
• Water scarcity in rice production
• Consumer concerns about glyphosate use

Mitigation Strategies

• Investing in Climate Smart Agriculture practices
• Implementing programs to reduce post-harvest loss and food waste
• Working with suppliers to achieve zero net deforestation
• Partnering with NGOs and industry groups to improve labor conditions
• Implementing water-efficient irrigation techniques
• Surveying suppliers on glyphosate use and discussing alternative practices

Supply Chain Management

Responsible Procurement

• Sustainable Sourcing Guidelines
• Brazilian Cerrado Manifesto

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Climate-smart agriculture practices

Reporting Standards

Frameworks Used: Field to Market’s Fieldprint Calculator, Sustainable Agriculture Initiative’s Farmer Self-Assessment, Bonsucro, SMETA

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Kellogg's initiatives contribute to these goals through responsible sourcing, climate-smart agriculture, and reduction of food waste.

Environmental Metrics

ESG Focus Areas

• Food Security
• Climate Change
• Wellbeing (Physical, Emotional, and Societal)
• Sustainable Agriculture
• Responsible Sourcing
• Diversity & Inclusion
• Human Rights
• Business Ethics & Compliance

Environmental Achievements

• Reduced energy use by 7.7% and greenhouse gas emissions by 10.1% from 2017.
• Reduced total waste in plants by 11.3%.
• Achieved a 2.6% reduction in food waste within manufacturing operations.
• Sourced 23% of electricity from renewable sources.
• Reduced water use by 7.7% from 2017.

Social Achievements

• Donated more than 530 million servings of food to people in need in 30 countries.
• Reached 1.1 million children through feeding and nutrition education programs.
• Kellogg employees and retirees volunteered 10,649 days.
• Engaged 135.4 million people in hunger relief efforts.
• Supported 322,000 farmers through climate-smart agriculture practices.

Governance Achievements

• Named to the FTSE4Good, Dow Jones Sustainability Index, and other ESG indices.
• Launched a company-wide food quality and safety training initiative.
• Global Total Recordable Incident Rate (TRIR) dropped 26% to 0.57, and global Lost Time Incident Rate (LTIR) dropped 14% to 0.30.

Climate Goals & Targets

Environmental Challenges

• Slower than expected reductions in greenhouse gas emissions and energy use due to factors like droughts and lower oil/gas prices.
• Increased energy needs due to changes in production network and consumer behavior.

Mitigation Strategies

• Investing in renewable electricity (reached 23% renewable energy share in 2018).
• Optimizing production processes and modifying equipment to reduce water and energy use.
• Implementing water reuse projects.

Supply Chain Management

Supplier Audits: 1447 audits in 2018

Responsible Procurement

• Global Supplier Code of Conduct
• Engagement with suppliers on climate action and gender equity
• Encouraging supplier participation in Sedex

Climate-Related Risks & Opportunities

Physical Risks

• Droughts limiting hydropower output

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 5
• SDG 12
• SDG 13
• SDG 15
• SDG 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• HI! Happy Inside™ cereal (prebiotics, probiotics, fiber)
• MorningStar Farms® vegan products

Awards & Recognition

• Dow Jones Sustainability Index
• FTSE4Good
• MSCI/ECPI Leaders indices
• WomenInc. Magazine’s List of Most Influential Corporate Directors
• National Association of Female Executives’ Top Companies for Women Executives
• Mogul’s Top 1,000 Companies with the Strongest Female Leaders
• Working Mother Diversity Best Practices Leading Inclusion Index Company
• Working Mother Best Companies for Women in India
• Best of the Decade Award from Minority Business News Magazine
• CDP Supplier Engagement Leaderboard
• CDP A rating for Supply Chain

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Agriculture
• Supply Chain Sustainability

Environmental Achievements

• Reduced normalized GHG emissions in manufacturing sites by more than 25%
• Increased renewable electricity use in food production facilities to 28.3%
• Achieved a 25.4% absolute reduction in Scope 1 and 2 greenhouse gas emissions

Social Achievements

• Helped more than 440,000 farmers adopt sustainable agriculture practices

Governance Achievements

• Board-level oversight of climate-related issues through the Social Responsibility & Public Policy Committee

Climate Goals & Targets

Environmental Challenges

• Increased severity and frequency of extreme weather events affecting crop productivity and supply chain
• Water scarcity impacting energy costs and GHG emissions

Mitigation Strategies

• Partnered with suppliers to address gaps in volume deliveries
• Developed security of supply strategies for key ingredients
• Invested in low-carbon technologies to address physical and transitional risks
• Implemented water risk assessments for facilities

Supply Chain Management

Supplier Audits: 74% of global spend

Responsible Procurement

• Code of Conduct
• CDP Supply Chain participation
• Kellogg’s Origins™ program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, cyclones, drought)
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Resource efficiency improvements
• Use of low-emission energy sources
• Reduced exposure to GHG emissions

Reporting Standards

Frameworks Used: CDP, Greenhouse Gas Protocol, Science Based Targets initiative, TCFD

Third-party Assurance: Third-party limited assurance for Scope 1, 2, and Scope 3 categories

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 12 (Responsible Consumption and Production)
• Goal 2 (Zero Hunger)

Kellogg's initiatives contribute to these goals through emissions reductions, sustainable agriculture practices, and responsible sourcing.

Sustainable Products & Innovation

• Plant-based foods

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Agriculture
• Supply Chain Sustainability

Environmental Achievements

• 32.8% absolute reduction in Scope 1 and 2 greenhouse gas emissions since 2015 baseline
• 40.3% renewable electricity used in food production facilities
• Helped more than 445,000 farmers adopt sustainable agriculture practices

Social Achievements

• Engaged suppliers representing 77% of global spend to report emissions through CDP Supply Chain

Governance Achievements

• Board-level oversight of climate-related issues through the Social Responsibility and Public Policy Committee
• Executive compensation linked to ESG performance

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (cold waves, droughts, wildfires)
• Challenges in sourcing renewable electricity in certain regions (India, China, Mexico, Russia) due to lack of credible procurement options, market data, and supportive market structures

Mitigation Strategies

• Partnered with suppliers to address gaps in volume deliveries
• Developed security of supply strategies for key ingredients
• Incorporated climate risks into Enterprise Risk Management process
• Investing in low-carbon technologies and high-efficiency projects
• Implementing local renewable energy generation (solar panels) in some facilities

Supply Chain Management

Supplier Audits: 77% of global spend engaged in CDP Supply Chain

Responsible Procurement

• Code of Conduct
• CDP Supply Chain reporting requirements
• Kellogg’s Origins™ program
• Joint Business Plans with Tier 1 suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Cold waves/frost
• Flooding
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts
• Increased cost of raw materials

Opportunities

• Energy efficiency improvements
• Renewable energy sourcing
• Reduced food waste
• Development of climate-resilient products

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, CDP, Science Based Targets initiative

Third-party Assurance: Apex GHG Verification, KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 2 (Zero Hunger)
• Goal 8 (Decent Work and Economic Growth)
• Goal 15 (Life on Land)

Kellogg's initiatives contribute to these SDGs through renewable energy sourcing, emissions reduction, sustainable agriculture practices, responsible sourcing, and support for farmer livelihoods.

Sustainable Products & Innovation

• Plant-based foods

Awards & Recognition

• 2021 CDP Supplier Engagement Leader