Focusing on Material ESG Issues
ESG Materiality* and Stakeholder Engagement
To inform and continuously improve upon our ESG strategy, we engage a wide variety of stakeholders for input. Participating in an ongoing, two-way dialogue with our stakeholders strengthens our understanding of important environmental, social and governance issues, which helps us set associated priorities to make respective impacts.
Our global stakeholder network includes both the internal and external people and parties whose support is important to the long-term success of our business, or who are materially impacted by our business operations. The table below lists these groups and summarizes our engagement activities with them.
* Materiality and its relevant definition as used in this report, sometimes referenced as “ESG materiality,” and our ESG materiality review process, is different than the definition used in the context of filings with the SEC. Issues deemed material for purposes of this Report and for purposes of determining our ESG strategies may not be considered material for SEC reporting purposes.
ESG Materiality Assessment
To inform our ESG strategy and goal-setting, Kraft Heinz conducts a comprehensive ESG materiality assessment every three to five years, with respective smaller interim updates as appropriate. This assessment allows us to identify and prioritize the environmental, social and governance issues that are of greatest concern to our stakeholders and relevant to the success of our business. We reevaluate these results on an ongoing basis to reflect any substantial changes in standing on these priority issues and allow for the inclusion of new or emerging issues. We treat our ESG materiality matrix as a living assessment based on participant input. We continue to evaluate material ESG issues to our key stakeholders and the respective impact on our business operations across dynamic global markets. Material issues are monitored regularly by a variety of internal stakeholders including Kraft Heinz leadership, ESG and the Corporate and Government Affairs ESG Subcommittee.
In 2022, we updated our ESG materiality assessment using Datamaran’s cloud-based AI software platform. Datamaran’s patented technology provides our ESG Steering Committee with real-time data analysis to identify and monitor new or emerging issues that may impact Kraft Heinz, including regular insight into our Company’s unique strategic, regulatory, and reputational risks and opportunities. The assessment includes signals from across a variety of different sources, including corporate annual filings, mandatory regulations, voluntary policy initiatives, online news and media, as well as a cross-functional employee survey. Through this tech-enabled, dynamic and data-driven approach, we have strengthened our strategy and governance process to meet the rise of stakeholder demands at Kraft Heinz.
Enterprise Risk Management
Kraft Heinz has an established, comprehensive approach to Enterprise Risk Management (ERM). Annually, senior management evaluates changes and required updates to the top enterprise risks. The ERM process covers a broad spectrum of risks across several dimensions: ESG, strategic, financial, operational, legal and regulatory, human capital, and hazard/catastrophic. Senior management prioritizes the risks and develops the Kraft Heinz risk profile, which is shared with the Audit Committee of the Board of Directors annually. Each risk owner provides regular updates to the Audit Committee of the Board of Directors.