ESG Governance
The Kraft Heinz Company is committed to responsible corporate governance. We have designed our governance structure 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 our 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, climate change, the environment, nutrition and well-being, and social issues. The Board of Directors reviews all significant ESG policies, processes and goals, and receives 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 9 other executives representing a variety of disciplines, including Finance, Sales, Operations, Procurement, Marketing, Research and Development, Human Resources, Legal/ Ethics & Compliance, Communications, and Corporate Affairs. The team receives quarterly progress reports from the ESG team.
ESG Team and Steering Committee
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, stockholders, employees, NGOs and community leaders, and leads the ESG Steering Committee.
The ESG Steering Committee 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 Committee has subcommittees that meet regularly in the following areas: Product Health; Sustainable Agriculture; Responsible Sourcing; Sustainable Manufacturing; Sustainable Packaging; Animal Welfare; Corporate & Government Affairs; and Communications.
These practices are designed to 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 compensation associated with all ESG initiatives.
Please visit http://ir.kraftheinzcompany.com and/or our Proxy Statement filed with the U.S. Securities and Exchange Commission on March 25, 2022 to learn more about our Company’s corporate governance structure and leadership. We are also proud to disclose certain ESG progress and achievements in 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).
Corporate Responsibility and Sustainability Governance
Board of Directors
PROVIDES OVERSIGHT
Oversees our global ESG strategy and objectives, including our activities and opportunities, as well as related risks. Engages at least annually with management to review all significant policies, processes, and commitments, with additional updates and engagement as necessary.
In July 2021, ESG oversight responsibilities shifted from the Operations and Strategy Committee, which was dissolved, to the full Board. We believe the full Board’s responsibility for consideration and oversight of critical ESG issues enhances our sustainability efforts, which are a critical component of our overall enterprise strategy.
Chief Executive Officer
PROVIDES EXECUTIVE SUPPORT
Collaborates with members of the Executive Leadership Team on oversight and executional leadership on strategies. Has an annual performance goal that tracks our ESG performance.
Executive Vice President, Global General Counsel, and Chief Sustainability and Corporate Affairs Officer
Oversees global ESG strategy, reports to the Chief Executive Officer, and collaborates with our ESG Team to establish and lead plan implementation. Has an annual performance goal that tracks our ESG performance.
Quarterly Business Reviews
Quarterly Business Review meetings with the Executive Leadership Team.
ESG Steering Committee – SteerCo
Provides cross-functional, upper-level management input on ESG practices and policies.
ESG Steering Committee Subcommittees
Provide high-touch engagement, track emergent issues, and drive collaboration, transparency, and continuous improvement toward initiatives.
Holds monthly workgroups in the following areas: Product Health; Sustainable Agriculture; Responsible Sourcing; Sustainable Manufacturing; Sustainable Packaging; Animal Welfare; Corporate & Government Affairs; and Communications.
ESG Team
Directs the design, development, execution, and continuous improvement of our global ESG strategy, goals, and initiatives. Engages with key stakeholders and leads the ESG Steering Committee.
Our Governance Commitments
Accountability:
We will continue to maintain ESG oversight with the Board of Directors. Our CEO, key leadership and respective team members lead and support our ESG goals and have linked key performance metrics embedded.
Communicate Transparently and Authentically:
We will continue to publish annual, third-party verified ESG reports, aligned to industry best reporting frameworks. We will report climate, forests and water information on an annual basis to CDP and engage with stakeholders on material ESG issues.
Market Our Products Responsibly:
We will continue to provide a healthy, safe and secure workplace. We improved safety KPIs over last year, representing some of the best results among our food and beverage industry peers.
Promote Workplace Health and Safety:
We will continue to provide a healthy, safe and secure workplace. We improved safety KPIs over last year, representing some of the best results among our food and beverage industry peers.
Operate Ethically:
We will continue to conduct business in an ethical manner and unwavering commitment to integrity and transparency.
Promote Diversity, Inclusion, and Belonging:
We will continue to demand and promote diversity, inclusion, and belonging in all aspects of our Company.
