We're living our Vision and Values.
The Kraft Heinz Company is committed to responsible corporate governance. We’ve designed our governance structure in 2019 to enable us to live our Vision and Values.
Board of Directors
Comprised of diverse, experienced and qualified leaders with strong credentials, our Board of Directors establishes corporate policies, sets strategic direction and oversees management, which is responsible for our day-to-day operations. Guided by its Corporate Governance Guidelines, the Board aims to foster the company’s long-term success and provides strategic direction to help us achieve meaningful results worldwide.
The Board of Directors helps establish and oversee our global ESG objectives and framework, including matters related to operations, our supply chain, animal welfare, the environment, nutrition and well-being, and social issues. In 2019, the Board has delegated primary responsibility for overseeing ESG objectives to the Nominating and Corporate Governance Committee. Members of the Nominating and Corporate Governance Committee reviewed all significant ESG policies, processes and commitments, and received regular updates from the ESG team on progress against key performance indicators and other relevant developments.
Executive Leadership Team
Our Executive Leadership Team provides oversight and executional leadership for our global ESG strategy. The Executive Leadership Team is led by Chief Executive Officer Miguel Patricio, and includes 10 executives representing a variety of disciplines, including Finance, Sales, Operations, Procurement, Marketing, Research and Development, Human Resources, Legal/Ethics & Compliance and Corporate Affairs. The team receives monthly progress reports from the ESG Team.
Official Signatory of the United Nations (UN) Global Compact
The Kraft Heinz Company is proud to announce that it is a participant and official signatory of the United Nations (UN) Global Compact as of September 2020. Kraft Heinz supports the Ten Principles of the UN Global Compact across its four pillars on human rights, labour, environment and anti-corruption. We are committed to making the UN Global Compact and its principles a further part of the strategy, culture and day-to-day operations of our company, and to engaging in collaborative projects which advance the broader development goals of the United Nations, particularly the Sustainable Development Goals. Learn more at the UN Global Compact website.
Corporate Responsibility and Sustainability Governance
Board of Directors
Nominating and Corporate Governance Committee reviews all significant policies, processes and commitments, through at minimum an annual ESG update to the Nominating and Corporate Governance Committee
Chief Executive Officer
Provides executive support
Collaborates with select members of the Executive Leadership Team on oversight and executional leadership on strategies
Senior Vice President, Global General Counsel and Head of ESG and Government Affairs; Corporate Secretary
Oversees global ESG strategy, Reports to the CEO
Collaborates with ESG Team to lead plan implementation
ESG Steering Group
Cross-functional, upper level management input on ESG practices and policies
High-touch engagement, tracking emergent issues, driving collaboration, transparency and continuous improvement toward initiatives
Monthly meetings in: Product Health; Sustainable Agriculture; Sustainable Sourcing; Sustainable Manufacturing; Sustainable Packaging; Animal Welfare; Communications
ESG Enterprise Team
Enterprise-wide cross-functional team from all levels of management
Provides input on forward-looking strategy
Accountable to the Board of Directors and in partnership with the Executive Leadership Team, the ESG Team directs the design, development, execution and continuous improvement of our ESG strategy, goals and initiatives. The ESG Team engages with key stakeholders regularly, including consumers, customers, shareholders, employees, NGOs and community leaders, and leads the ESG Steering Group.
The ESG Steering Group is comprised of leaders in various functions around the globe. Team leaders are responsible for mobilizing the organization and collaborating across departments to lead the development, implementation, continuous improvement and measurement of relevant ESG policies, procedures and programs. The ESG Steering Group has subcommittees that meet regularly in the following areas: Product Health; Sustainable Agriculture; Sustainable Sourcing; Sustainable Manufacturing; Sustainable Packaging; Animal Welfare; and Communications.
These practices ensure alignment with business strategies and operational objectives. The CEO and key leadership, along with various other team members, hold ESG key performance metrics linked to renumeration associated with all ESG initiatives. Please visit http://ir.kraftheinzcompany.com and/or our Definitive Proxy Statement filed with the U.S. Securities and Exchange Commission on March 27, 2020 to learn more about our company’s corporate governance structure and leadership. Kraft Heinz is proud to integrate our ESG governance practices into our Proxy Statements. Kraft Heinz has also increasingly integrated and disclosed environmental related financial exposure that feeds into various reporting frameworks, such as Sustainalytics, the Dow Jones Sustainability Index and CDP (Climate, Water and Forest questionnaires).
Focusing on Material 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 critical 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.
To inform our ESG strategy and goal-setting, Kraft Heinz conducts a comprehensive materiality assessment every three to five years. This assessment allows us to identify and prioritize the environmental, social and governance issues that are of greatest concern to our stakeholders and which impact the success of our business. We reevaluate these results on an ongoing basis to reflect any changes in standing on these priority issues and allow for the inclusion of new or emerging issues.
Our materiality matrix depicts the outcomes of the following assessments:
- 2016: We developed our first materiality assessment as a new company.
- 2019: We added several issues to reflect their rising importance to our stakeholders and potential business impacts, including Consumer Trends and Innovation, Food Waste, Diversity and Inclusion, and Ingredient Transparency and Responsible Labeling.
- Early 2020: As a result of additional engagement with key business partners and employees, we have adjusted the weight of “Human Rights” materiality, as well as separated out “Sustainable Sourcing/Agriculture,” adjusted the nomenclature to more accurately reflect the area of impact for Kraft Heinz, and weighted accordingly, into the two distinct areas of “Responsible Sourcing” and “Sustainable Agriculture.”
We treat our materiality matrix as a living assessment based on participant input. We continue to evaluate material issues to our key stakeholders and the respective impact on our business operations across dynamic global markets.
Moreover, we have adopted the nomenclature of Environmental Social Governance (ESG) as the overarching framework for the Kraft Heinz sustainability platform. We remain committed to corporate responsibility and providing value to our stakeholders. We believe our ESG guiding framework will further demonstrate our commitment to corporate responsibility, while highlighting the importance of continuous improvement and transparency in these efforts. We furthermore believe our ESG framework will better reflect our ambition and workstreams toward further integration of risk and financial-related disclosure within ESG materiality.
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: strategic, financial, operational, legal & 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.