Climate Change Data

Environmental Metrics

ESG Focus Areas

• Better Supply Chain
• Better Environment
• Better Products
• Better Communities

Environmental Achievements

• Reduced greenhouse gas emissions by 5.1 percent
• Reduced energy usage by 3.6 percent
• Reduced water usage by 1.4 percent
• Reduced waste to landfill by 9.5 percent

Social Achievements

• Improved safety KPIs by 40 percent over 2015
• Delivered 124 million meals to people in need
• Donated 22.8 million pounds of food (more than 19 million meals) to Feeding America
• Launched Gender Balance platform in Europe
• Established first Diversity and Inclusion Committee in Canada

Governance Achievements

• Implemented a comprehensive, best-in-class food safety management process
• Published first Corporate Social Responsibility (CSR) Report

Climate Goals & Targets

Environmental Challenges

• Reducing water usage by 15 percent by 2020 (slower progress than desired)
• Meeting consumer demand for healthier products while maintaining taste and affordability
• Ensuring responsible sourcing of palm oil and other ingredients

Mitigation Strategies

• Developed new action plan to achieve water reduction goal
• Reformulated products to remove artificial ingredients and reduce sodium and sugar
• Established comprehensive policy for sustainable palm oil sourcing, partnering with Rainforest Alliance

Supply Chain Management

Responsible Procurement

• Supplier Guiding Principles
• Global Animal Welfare Policy
• Sustainable palm oil sourcing policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Sustainable Products & Innovation

• Kraft Mac & Cheese (reformulated)
• Oscar Mayer Hot Dogs (reformulated)
• Compostable coffee pods (Canada)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Responsible Sourcing
• Healthy Living & Community Support

Environmental Achievements

• Launched a water reuse project at Newberry, South Carolina plant, saving roughly 86 million gallons of water annually and reducing costs by $500,000.
• Reduced energy use by 1% year-over-year in 2019, for an overall reduction of 4% since 2016.
• Achieved 70% recyclable, reusable, or compostable packaging by 2019.
• Converted 290 million Heinz ketchup bottles from non-recyclable to recyclable between 2017 and 2019.
• Expanded solar footprint in China, generating 2.6 million kilowatt hours of clean electricity annually and reducing CO2 emissions by approximately 2,028 tons per year.

Social Achievements

• Achieved 76% compliance with Global Nutrition Guidelines (four years ahead of schedule).
• Donated the equivalent of 538 million meals to those in need since 2016.
• Improved safety KPIs, representing some of the best results among food and beverage industry peers.
• Launched LiveWell health and wellness platform in the U.S. and Canada.
• Established an Animal Welfare Advisory Committee.

Governance Achievements

• Published a new Global Human Rights Policy.
• Undertook a global human rights risk assessment.
• Increased score every year since 2015 on the “CPA-Zicklin Index”.

Climate Goals & Targets

Environmental Challenges

• Trailing 2020 targets in water conservation, energy use, greenhouse gas emissions, and waste reduction in 2019.
• Supply chain challenges impacting environmental performance.
• Increased waste to landfill by 16% in 2019.

Mitigation Strategies

• Prioritizing high-risk water sites for improvement.
• Developing a strong byproducts plan and improved forecasting for waste reduction.
• Revamping product donation strategies.
• Implementing water reuse, cleaning efficiency, and optimization projects.

Supply Chain Management

Responsible Procurement

• Supplier Guiding Principles
• Sustainable palm oil sourcing
• Sustainable soy sourcing
• Animal welfare requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Standard, UN Sustainable Development Goals (SDGs)

Third-party Assurance: Bureau Veritas (limited assurance of Scope 1 and 2 energy, water and waste data)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 12: Responsible Consumption and Production

Initiatives related to hunger relief, nutrition, sustainable agriculture, and responsible sourcing.

Sustainable Products & Innovation

• Heinz Tomato Ketchup No Added Sugar & Salt
• Heinz Tomato Ketchup Simply with No Artificial Sweeteners
• Heinz Tomato Ketchup with a Blend of Veggies
• Boca Skillets
• Smart Ones Frozen Bowls
• Heinz Creationz

Awards & Recognition

• Perfect score on the Corporate Equality Index (CEI)
• Awards from One Show, the International Food and Beverage Association and D&AD

Environmental Metrics

ESG Focus Areas

• Healthy Living & Community Support
• Environmental Stewardship
• Responsible Sourcing

Environmental Achievements

• Reduced water use intensity by 2.8% across all sites and by 5.2% in high-risk watershed areas.
• Reduced energy use intensity by 2.2%
• Reduced GHG emissions intensity by 3.4%
• Reduced waste intensity by 6%
• 83% of global packaging was recyclable, reusable, or compostable.

Social Achievements

• Provided more than $40 million in financial and product donations for COVID-19 relief, food insecurity, and social justice causes globally.
• Delivered more than 200 million meals in 2020 towards a goal of 1.5 billion by 2025 to combat global hunger.
• Achieved 100% free-range eggs in Europe.
• Launched the Kraft Heinz Global Inclusion Council.
• Introduced a mentoring program for Black employees and the WeLead Program to prepare Black employees for future leadership roles.

Governance Achievements

• Moved primary responsibility for overseeing ESG objectives from the Nominating and Corporate Governance Committee to the Operations and Strategy Committee.
• Established a Global Human Rights Policy.
• Developed Supplier Guiding Principles.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19.
• Meeting previous 2020 intensity targets for water conservation, energy use, greenhouse gas emissions, and waste reduction.
• Achieving full compliance with Global Nutrition Targets.

Mitigation Strategies

• Launched a global taskforce and implemented robust workplace safety programs.
• Set new, more ambitious manufacturing targets for 2025.
• Implemented a cross-functional approach to ESG with accountability measures.
• Continued to innovate and renovate product portfolio to meet nutrition goals.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Guiding Principles
• Sustainable palm oil sourcing
• Sustainable soy sourcing
• Animal welfare requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: FSSC 22000

Third-party Assurance: Bureau Veritas and SGS (limited assurance on specific environmental data)

UN Sustainable Development Goals

• Not disclosed

Kraft Heinz supports all 17 UN SDGs.

Sustainable Products & Innovation

• Heinz By Nature baby food
• Maxwell House compostable coffee pods
• Heinz Plant Proteinz soups

Awards & Recognition

• Industry Mover Status by S&P Global in The Sustainability Yearbook 2021
• #181 on Forbes World’s Best Employers
• #17 on Forbes Top Regarded
• Great Place to Work-Certified™ by Fortune
• Best COVID-19 Communications from Workplace Benefits Awards Canada
• Heinz Magic Breakfast – Winner Charity Partnership

Environmental Metrics

ESG Focus Areas

• Healthy Living & Community Support
• Environmental Stewardship
• Responsible Sourcing

Environmental Achievements

• Reduced water use intensity by 4.4% across all sites and by 12.2% in high-risk watershed areas compared to 2019 baseline.
• Reduced energy use intensity by 5.1% compared to 2019 baseline.
• Reduced waste to landfill intensity by 14.7% compared to 2019 baseline.
• Five new manufacturing facilities achieved zero waste-to-landfill status, bringing the total to 16 globally.
• Achieved 100% sustainable palm oil sourcing.
• Achieved 100% traceable palm oil to the mill.
• Created a fully circular Heinz Tomato Ketchup Bottle in Europe.

Social Achievements

• Provided approximately 440 million meals to people in need in 2021.
• Improved safety KPIs, representing some of the best results among food and beverage industry peers.
• Increased women in management roles to 39%.
• Increased the percentage of salaried U.S. employees identifying as people of color to 26%.

Governance Achievements

• Updated ESG materiality assessment using Datamaran's AI platform.
• Launched updated Supplier Guiding Principles.
• Established ESG Due Diligence and Management Program.

Climate Goals & Targets

Environmental Challenges

• Decreased compliance with Kraft Heinz Global Nutrition Targets (GNTs) due to expanded regional data and updated nutritional information.
• Challenges in improving broiler chicken welfare and meeting European Chicken Commitment standards due to supply chain issues.
• Challenges in reducing sodium in BBQ sauce and Kraft salad dressings in North America.

Mitigation Strategies

• Focusing on improving data quality and nutrition profiles in regions early in their nutrition target compliance journey.
• Implementing plans to achieve 85% compliance with GNTs by 2025.
• Working with suppliers to transition to enhanced broiler chicken welfare standards.
• Implementing plans to achieve North America sodium reduction goals by 2025.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Guiding Principles
• ESG Due Diligence and Management Program
• Sustainable Agricultural Practices Manual
• Global Animal Welfare Policy

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions and natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: FSSC 22000

Third-party Assurance: Bureau Veritas and SGS United Kingdom Ltd. (limited assurance on specific environmental data)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• 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

Initiatives aligned with SDGs through partnerships, operational programs, and supply chain improvements.

Sustainable Products & Innovation

• Plant-based products (Heinz vegan mayo, Beanz Burgers)
• Organic products
• Reduced sugar and sodium products
• Recyclable packaging

Awards & Recognition

• 100% on the Corporate Equality Index (CEI)
• Best Place to Work for LGBTQ Equality
• Forbes Canada’s Best Employers
• Fortune Great Place to Work Certified
• LinkedIn Top Companies List
• Excellence in Women’s Leadership Development
• Third Sector Business Charity Awards
• Work with Pride Gold
• Recognized by Lidl & Korn Ferry for gender-balanced remuneration policy

Environmental Metrics

ESG Focus Areas

• Healthy Living & Community Support
• Environmental Stewardship
• Responsible Sourcing

Environmental Achievements

• Reduced water use intensity by 8.7 percent for all facilities, and by 16.07 percent in high-risk watershed areas.
• Reduced energy use intensity by 4.22 percent.
• Reduced waste to landfill intensity by 18.40 percent.
• Procured 14.21% of electricity from renewable sources.
• Developed roadmaps for net zero GHG emissions by 2050 and 50% reduction by 2030
• Removed the legendary plastic “shaker” bag from our Shake ‘N Bake portfolio, eliminating approximately 900,000 pounds of plastic waste annually.
• Teamed up with Tesco to turn soft plastics returned by shoppers into recyclable Heinz Beanz Snap Pots, saving approximately 22 tons of plastic from landfills.
• Developed a paper-based, renewable and recyclable Heinz tomato ketchup bottle made from 100 percent sustainably sourced wood pulp

Social Achievements

• Provided approximately 334 million meals to people in need.
• Reduced sugar in Capri Sun beverages an average of 40%.
• Launched a plant-based version of Kraft American cheese (Kraft NotCheese).
• 41% of global management positions are filled by women.
• 28% of salaried U.S. employee population identified as people of color.

Governance Achievements

• Established ESG-related key performance indicators (KPIs) for more than 1,500 executives and employees.
• CEO and key leadership have ESG key performance metrics linked to compensation.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change
• Decreased agricultural productivity
• Increased consumer demand for food products or changes in consumer preferences
• Economic and political conditions
• Inflationary pressures
• Dependence on technology
• Costs of resources and raw materials
• Adverse weather conditions and natural disasters
• Labor strikes

Mitigation Strategies

• Developed alternative sourcing strategies
• Localization initiatives in Egypt and Eastern Europe
• Partnership with Pulpex for sustainable packaging
• Collaboration with suppliers on sustainable agriculture practices
• Investing in renewable energy sources
• Implementing robust safety management systems

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Guiding Principles
• Sedex and EcoVadis memberships
• ESG risk assessment
• Due Diligence program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Transition to renewable energy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: Null

Third-party Assurance: Bureau Veritas and SGS United Kingdom Ltd.

UN Sustainable Development Goals

• All 17 SDGs

Kraft Heinz’s global ESG strategy supports all 17 SDGs in varying degrees.

Sustainable Products & Innovation

• Plant-based products
• Recyclable packaging

Awards & Recognition

• Bloomberg Gender Equality Index
• Latino Equity 100 List
• Forbes America’s Best Employers for Veterans
• Forbes Canada’s Best Employers
• Great Place to Work Certified
• PRIDE Index Gold
• Financial Times Diversity Leaders
• Product of the Year awards (Heinz Beanz Burgers)
• 2022 U.K. packaging awards and Packaging Innovation Award (Tesco/Heinz Snap Pots)

Environmental Metrics

ESG Focus Areas

• Healthy Living & Community Support
• Environmental Stewardship
• Responsible Sourcing

Environmental Achievements

• Reduced water use intensity by 19.5% in high-risk watershed areas compared to a 2019 baseline.
• Reduced water use intensity by 8% across all facilities compared to a 2019 baseline.
• Reduced energy use intensity by 5% compared to a 2019 baseline.
• Reduced waste to landfill intensity by 11% compared to a 2019 baseline.
• Procured 22.3% of electricity from renewable sources.
• 87% of packaging was recyclable, reusable or compostable.
• Announced a new goal to reduce the use of virgin plastic by 20% by 2030.
• Purchased 100% sustainable palm oil.
• Released Global Deforestation- and Conversion-Free Policy.

Social Achievements

• Provided approximately 368 million meals to people in need.
• 75% of the portfolio was in compliance with Kraft Heinz Global Nutrition Targets.
• 43% of global management positions filled by women.
• 29% of salaried U.S. employee population identified as people of color.

Governance Achievements

• Maintained safety KPIs, representing some of the best results among industry peers.

Climate Goals & Targets

Environmental Challenges

• Challenges in delivering ambitious ESG goals, particularly related to net-zero emissions due to slow pace of technology, infrastructure development, and evolving government policies.
• Challenges in sourcing cage-free eggs globally due to supply availability and high transition costs.
• Challenges in achieving 100% recyclable, reusable, or compostable packaging by 2025 due to limitations in recycling infrastructure.
• Challenges related to Scope 3 emissions, particularly agricultural and ingredient-related emissions.

Mitigation Strategies

• Re-evaluating targets to ensure adherence to latest GHG Protocol and SBTi standards.
• Developing a Supplier Sustainability Engagement program to collaborate with suppliers on sustainability initiatives.
• Investing in renewable energy projects and implementing energy efficiency measures.
• Working with suppliers to improve animal welfare and sustainable agriculture practices.
• Developing roadmaps to improve nutrition across core brands.
• Investing in external consortiums and initiatives to improve recycling and composting infrastructure.

Supply Chain Management

Responsible Procurement

• Supplier Guiding Principles
• Sustainable sourcing policies for key commodities
• Due diligence processes
• Supplier Sustainability Engagement Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Third-party Assurance: Bureau Veritas (limited assurance on specific environmental data)

UN Sustainable Development Goals

• All 17 SDGs

Kraft Heinz’s global ESG strategy supports all 17 SDGs in varying degrees.

Sustainable Products & Innovation

• Plant-based products (Philadelphia plant-based cream cheese, Kraft NotCheese Slices, Kraft NotMac&Cheese)
• Heinz flavored Beanz varieties
• Wattie’s Plant Proteinz Pasta

Awards & Recognition

• Forbes 2023 Best Employers for Diversity
• Great Place to Work certifications
• Seramount Inclusion Index Company Member
• Bloomberg Gender-Equality Index 2023
• Rise & Lead Award
• Nine Brandon Hall awards
• 2023 APEX Learning award
• U.K. Packaging Awards
• Packaging Europe Sustainability Award