We're working throughout our value chain to meet targets and continually improve.
We commit to procure 100% sustainable and traceable palm oil to the mill by 2022.
We are dedicated to responsible sourcing and related impacts in critical areas to Kraft Heinz and our stakeholders. We are also committed to strengthening our due diligence and management programs, while keeping the needs of our suppliers and our customers a top priority.
Sustainably Sourced Palm Oil
The Kraft Heinz Company recognizes that unsustainable palm oil production is one of the largest drivers of deforestation globally, and as an organization 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 (b) since 2007, a multi-stakeholder nonprofit aimed at uniting all aspects of the palm industry to minimize the negative impact of palm oil cultivation. In 2017, Kraft Heinz became a founding member of The North American Sustainable Palm Oil Network (NASPON). NASPON is an independent group of associations, civil society organizations, consumer goods manufacturers, retailers, and palm oil traders and producers, who are committed to increasing the use of certified sustainable palm oil (CSPO) in North America to 100%. NASPON works collaboratively to find industry wide solutions to secure certified sustainable palm oil in our products while adhering to human rights and labor laws, and while respecting local communities and biodiversity throughout the palm oil supply chain.
In 2017, Kraft Heinz initiated a partnership with The Rainforest Alliance to carry out an initial deforestation baseline risk assessment of our global (tier 1) direct supply chain and guide the development of our Global Sustainable Palm Oil Policy.
The implemented Policy incorporates environmental and social principles and highlights Kraft Heinz’s commitment to sourcing palm oil that is 100 percent certified sustainable and traceable to the mill.
The baseline risk assessment of our direct global palm oil supply chain allowed us to identify potential deforestation risks, as well as peatland/biodiversity hotspot encroachment concerns. Direct suppliers were 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 were also shared, as well as their progress on those targets. 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 allowed us to engage our suppliers to discuss any identified risks and develop action plans to manage them.
- 2007: H.J. Heinz Company becomes a member of the Roundtable on Sustainable Palm Oil.
- 2014: Kraft Foods Group becomes a member of the Roundtable on Sustainable Palm Oil.
- 2015: Kraft Heinz Company becomes a member of the Roundtable on Sustainable Palm Oil.
- 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 2019, we initiated our corrective action phase, engaging our direct suppliers to discuss identified risks in their supply chains and map out next steps.
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. We look forward to educating all of our stakeholders on our policy and expectations, maintaining accountability, and increasing transparency.
Kraft Heinz is proud to announce that we achieved 100% sustainable palm oil and 99.3% palm oil traceable to the mill, in 2019.
Direct Supplier Compliance
- 100% of tier 1 suppliers RSPO certified (a 39% increase from Baseline).
- 99.3% of direct supply chain traceable to the mill (an 11% increase from Baseline)
- 82% of our direct suppliers had sustainable palm oil sourcing policies in place
External Manufacturing Supplier Compliance (2018 Baseline):
- 84% of palm oil RSPO certified
- 77% of palm oil traceable to the mill
- 40% of our 300 plus external manufacturers had sustainable sourcing policies in place.
Sustainable Soy Sourcing
In partnership with The Rainforest Alliance, in 2019 Kraft Heinz expanded its forest risk commodities supply chain assessment to include soy. The first phase of this work focused on our global direct soy-based ingredient suppliers, with the purpose of carrying out a baseline evaluation to understand their sustainable soy sourcing policies and commitments. As part of that process, we evaluated any existing sustainable product certifications and sourcing risks based on countries of origin. We also established greater visibility to their overall chain of custody.
Based on results obtained from our direct global suppliers that completed the survey, we learned the following about our global soy volume, approximately:
- 47% is sourced from low-risk countries of origin in regard to environmental and social risk
- 5% comes from potential medium-risk countries of origin
- 38% comes from potential high-risk countries of origin
Additionally, 49 percent of the suppliers that participated in the exercise reported a sustainable sourcing policy in place, while 33 percent of the suppliers that indicated they do not have a policy in place, communicated they could develop and implement a policy in the future. This initial assessment helped us gain visibility into and increased transparency of a considerable segment of our global soy supply chain. Further engagement is needed in our soy value chain to investigate potential risks. The assessment produced a number of key recommendations that we are in the process of evaluating to help determine next steps.
Kraft Heinz is committed to responsibly sourcing seafood. We recognize that seafood is already the largest traded food commodity in the world, and that demand continues to grow. Today approximately 3 billion people sustain themselves on wild-caught and farmed seafood as their primary source of protein. Along with that scale, comes significant downside potential in terms of detrimental environmental impact on fish stocks, marine life and coastal habitats, as well as human rights issues in the supply chain.
That is why Kraft Heinz is committed to sourcing seafood sustainably and providing transparent updates on our progress. Kraft Heinz continues to work with The Tuna Store in offering new brands of high-quality tuna products to our foodservice customers. As part of the Tri Marine Group of Companies, The Tuna Store is a vertically integrated company controlling every link in its supply chain. As a result, the Tuna Store supplies Kraft Heinz with quality product that is both traceable to the fish and sustainably sourced, including catch vessel, captain, catch method, catch area and species of fish.
In Australia, we have committed to stop using fish aggregating devices (FAD) in all tuna sourcing activities. All Greenseas products manufactured by Kraft Heinz transitioned to FAD-free tuna. We completed that transition in 2017, and now purchase approximately 6.7 million pounds of FAD-free skipjack tuna in Australia and New Zealand annually.