Purchase 100% sustainable palm oil by 2022.
Purchase 100% traceable palm oil to the mill by 2022.
Kraft Heinz recognizes that unsustainable palm oil production is one of the largest drivers of deforestation globally. We have taken active steps to address these issues in our supply chain. We (including through legacy Heinz prior to 2015) have been a proud member of the Roundtable on Sustainable Palm Oil (RSPO) since 2007, a multi-stakeholder nonprofit aimed at uniting all aspects of the palm industry to minimize the negative impacts of palm oil cultivation.
The baseline risk assessment of our direct global palm oil supply chain conducted in 2017 allowed us to identify potential deforestation risks, as well as peatland/biodiversity hotspot encroachment concerns. Direct suppliers were additionally asked to provide information on the country of origin of their palm raw materials, as well as their sustainable/ responsible sourcing policies. Details on their sustainable palm oil objectives and progress were also shared. Suppliers were also asked to provide traceability data for all palm oil mills in their supply chain. The mills’ geographical location in conjunction with a global satellite mapping tool incorporated potential deforestation and other environmentally related risks in the mill sourcing regions. The information obtained from this exercise informed our Global Sustainable Palm Oil Policy, and allowed us to engage our suppliers to discuss any identified risks and develop action plans to manage them.
- 2007: H.J. Heinz Holding Corporation becomes a member of the Roundtable on Sustainable Palm Oil.
- 2014: Kraft Foods Group, Inc. becomes a member of the Roundtable on Sustainable Palm Oil.
- 2015: Kraft Heinz becomes a member of the Roundtable on Sustainable Palm Oil.
- 2017: Kraft Heinz became a founding member of The North American Sustainable Palm Oil Network.
- 2018: Kraft Heinz worked with The Rainforest Alliance to expand the scope of our deforestation risk assessment to include global external manufacturing partners.
- 2019: Kraft Heinz initiates corrective action phase, engaging direct suppliers to address identified risks in their supply chains.
In 2021, we continued to evaluate our supply chain to assess our direct suppliers and evaluate their sustainable palm oil policies, track their progress towards 100 percent traceability to the mill and make sure that they maintain RSPO certification for the products we purchase from them. Moving forward, Kraft Heinz will continue to engage with direct suppliers, external manufacturers, and indirect suppliers to advance our sustainable and traceable palm oil supply. In 2022, Kraft Heinz is committed to advancing our responsible sourcing program to include a no deforestation roadmap, underpinning our slated 2022 release of our Global No Deforestation Policy. We look forward to working with our stakeholders on our policy and expectations, maintaining accountability and increasing transparency.
Plasmon, Growing Through Local Sourcing and Traceability
Our Plasmon brand from Italy is a leader in baby food with a strong ESG mission. The 119-year-old brand sells a range of products, including homogenized baby food, pasta and fruit compote for babies. However, it is best known for its infant biscuits made with powdered milk, vitamins and minerals. Its manifesto, “We grow together, the future of Italy” has been a guiding force in its evolution.
Across its value chain, Plasmon has initiated several sustainability projects. Also of note, in 2019 the brand signed a program- based Memorandum of Understanding with the Italian Ministry of Agriculture, Food and Forestry to drive better traceability of its supply chain and food safety transparency. Included in the memorandum was a commitment to certify the Plasmon supply chain as 100 percent traceable and target 25,000 tons of product to be sourced from Italy by 2025. In 2021, Plasmon increased it supply of Italian raw materials to 20,100 tons. This represented approximately 84 percent of its goal, up from 16,000 tons in 2020, even as it dealt with business impacts of COVID-19. This success was made possible with the collaboration of suppliers and partners such as Inalca, Orogel, Milini Spigadoro, Mila and Coldiretti, who have worked in innovative ways to ensure a steady supply of ingredients for the brand.