Renewable Electricity

Kraft Heinz is committed to operating responsibly and doing its part in the critical global efforts to reduce the harmful impacts of climate change. A big component of that commitment is both reducing how much energy we consume, and thereby reducing the associated emissions where applicable, as well as rethinking our energy sources. That is why in 2020, we committed to buy the majority of our electricity from renewable sources by 2025. During 2020, we also embarked upon several energy optimization initiatives at our global facilities, both combining smart long-term investments in energy efficiency, as well as instituting best practices aimed at controls and real-time operations management towards our energy stewardship goals.

Procure majority of electricity from renewable sources by 2025.

ON TRACK

Net Zero Commitment and Greenhouse Gas Management

In 2021 we announced our pledge to achieve net zero greenhouse gas (“GHG”) emissions across its operational footprint (Scope 1 and Scope 2) and entire global supply chain (Scope 3) by 2050, reaffirming our commitment to contribute to global efforts to reduce the ongoing threat of climate change. As a milestone on its path to achieving net zero emissions, we will target a near-term emissions reduction of 50% by 2030 across all three scopes.

Key focus areas of our net zero program include:

  • Promoting regenerative and sustainable practices across the Company’s agricultural supply chain through its Sustainable Agricultural Practices Manual, which guides efforts to source 100% of Heinz ketchup tomatoes sustainably by 2025
  • Transitioning to more circular and recyclable consumer packaging
  • Procuring a majority of the Company’s electricity from renewable sources by 2025
  • Continuing to transition key on-site manufacturing facilities to renewable energy sources.

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In 2020, we underwent a robust assessment related to our total value chain emissions, including externally verifying our Scope 3 emissions. We have also renewed our commitment to set a Science Based Target with SBTi by 2023, in accordance with the most current, credible and widely accepted climate science standards available. In the meantime, we are not resting.

For example, we are directly targeting significant reductions in our respective emissions through:

  • Scope 1: Continuing to reduce consumption and transition from fossil-based fuels to renewable options (e.g. solar, biomass)
  • Scope 2: Continuing to expand procurement of the majority of our electricity from renewable sources for all facilities globally by 2025
  • Scope 3: Strong partnership in advocacy toward initiatives that reduce emissions across our value chain

A considerable portion of our total carbon footprint is produced from our Scope 3 emissions, and more specifically originate in our supply chain (see graphs to the right for emissions breakdown). Agriculture related emissions are particularly significant and provide the greatest opportunity for reduction through increased collaboration.

Overall, our highest impact categories in this area, in order of magnitude, are:

  • Ingredients
  • Packaging
  • Upstream and downstream transportation
  • Use of sold products
  • End-of-life

We will remain focused on optimizing our immediate operational footprint to lessen our impact on climate, while we increasingly investigate joint initiatives with our suppliers that ensure the highest quality products are produced, while being good stewards of the environment.