How Kraft Heinz Is Pushing For Environmental And Social Improvements

CORRECTION 10/24/22: A previous version of this article stated Kraft Heinz has a goal of sourcing at least 51% of supplies from companies owned and operated by people of color, members of the LGBTQ+ community, women, veterans, and people with disabilities by 2025. The company's goal is to partner with companies at least 51% owned by people of color, members of the LGBTQ+ community, women, veterans, people with disabilities, and other recognized minorities, aiming to triple its spending with these companies by 2025.

Although most consumers associate the words 'Kraft' and 'Heinz' with slices of American cheese and bottles of ketchup, Kraft Heinz – the grocery store juggernaut behind household name brands like Philadelphia, Jell-O, Velveeta, A.1., Oscar Meyer, and others — is hoping a new slate of initiatives will earn the company a positive reputation with environmentalists and workplace advocates alike.

In a press release, the Chicago-based company announced the release of its latest Environmental Social Governance (ESG) Report. The report, titled "Together at the Table" lays out a slate of social and sustainability initiatives that Kraft Heinz hopes to achieve in the coming years. The culinary conglomerate, which made $26 billion in sales in 2021 alone and employs nearly 39,000 people worldwide, is the 12th largest food company in the world, according to Yahoo Finance. 

Kraft Heinz — which was created during a 2015 merger of the two long-standing grocery store institutions — has long been a major player in the grocery market, but the company's focus on social and sustainability initiatives has been a more recent development. Now, in the sweeping ESG report, which emphasizes calls for greater employee diversity, responsible product sourcing, and environmental conservation, the company has presented its most ambitious set of goals yet. 

Among Kraft Heinz's sustainability and social goals stated in their ESG report for the coming years are initiatives to reduce environmental emissions by 50% by 2030 and achieve net-zero carbon emissions by 2050. More specifically, the company laid out goals to reduce energy use at manufacturing facilities by 15% and source the majority of the electricity used from renewable energy sources by 2025.

Kraft Heinz also aims to use 100% recyclable, reusable, or compostable packaging by 2025 — a number that is currently at 84% (per Food Business News) — and is actively expanding its plant-based offerings, including products like vegan mayonnaise and bean burgers. "Environmental stewardship begins with our operational footprint, where we actively strive to conserve water and energy, reduce emissions, minimize waste and make our packaging sustainable," the ESG report reads.

On the social front, the company shared updates on previously established diversity and meal distribution initiatives. After setting a goal in 2019 to distribute 1.5 billion meals to those in need by 2025, the company revealed that it had distributed 440 million meals in 2021.

Over the last year, Kraft Heinz also made strides towards previously set workplace diversity goals. According to Food Business News, the company is currently on track to fulfill an initiative to have 50% of its global management positions filled by women by 2025, a number that is currently at 39% (up 2% from the previous year). It also increased the percentage of salaried U.S. workers that identify as people of color — currently accounting for 26% of the company's American workforce, up from 24% in 2020 — with an aim to reach 30% of POC workers by 2025.

In addition to expanding the diversity of its workforce, Kraft Heinz also launched a supplier diversity program in 2021 with the goal of partnering with companies at least 51% owned by people of color, members of the LGBTQ+ community, women, veterans, people with disabilities, and other recognized minorities, aiming to triple its spending with these companies by 2025.

"When it comes to ESG, we are on a long journey. While we celebrate the progress we are making toward our goals and aspirations, we humbly acknowledge we have much work still to do," wrote Kraft Heinz CEO Miguel Patricio, in the report. "But despite these challenges, our teams ... are working together to make real progress across our key metrics. And they are doing it all while prioritizing a more diverse and inclusive workplace."