We're working to deliver on global food demand with efficient operations.

Sustainability Goals in Manufacturing

The Kraft Heinz Company is committed to reducing its operational environmental footprint. We have prioritized projects across our global manufacturing network in the areas of water conservation, energy use and greenhouse gas emissions (GHGs), waste reduction and packaging.

However, through 2019 we are trailing our 2020 targets in water conservation, energy use, greenhouse gas emissions and waste reduction. The unfavorable results in these areas are consistent with previous reporting the company has disclosed regarding supply chain challenges that we have contended with. Water use increased 1 percent. We reduced our energy use by 1 percent while GHG emissions increased 8 percent. Our waste increased significantly by 16 percent. We recognize the substantial amount of work we need to do in these areas. We continue to learn, identify gaps and address them with a more comprehensive approach. And it is paying off. For example, we have prioritized high-risk water sites and general site-specific focus is helping us more recently turn the tide toward our targets related to water. In energy use, after an inconsistent 2016, we have been trending toward our goal over the past 3 years. We achieved a 1 percent improvement in energy use year over year (YOY) in 2017, followed by a 2 percent YOY improvement in 2018, and finally a 1 percent improvement YOY in 2019, for an overall reduction of 4 percent since 2016. We anticipate 2020 will see even greater improvement as we continue to identify and prioritize areas of greatest opportunity. We recycle or repurpose on average approximately 90 percent of our manufacturing waste globally. Nevertheless, we were disappointed by our waste performance against our 2020 target. We have developed a strong byproducts plan, along with improved forecasting and revamped related product donation strategies that will all help us achieve our waste targets going forward. Indeed, as you will find in the pages that follow, there are true proof points and successes on the renewed path we are on toward achievement of our sustainable manufacturing targets.

We recognize the significant environmental impacts an ever-growing world can have, and we remain steadfast to try to balance production processes that can meet global food demand with efficient operation. Through thorough assessment, we know there are opportunities for improvement at various stages of our operations, and we will learn from external perspectives, as well as ourselves by continuously fostering an environment of collaboration, ownership and innovation. We continue to strive to meet our 2020 targets and achieve the greatest improvement possible. And as we look to our new 2025 targets, we are able to build off of a solid foundation in that we have achieved recent significant improvements through changes in how we manage our supply chain, through greater prioritization of impact areas, and through regular reporting and greater accountability.