Kraft Heinz

The company states that it conducts scenario analyses, including a 1.5C or below scenario; however, it is unclear if this analysis is TCFD-aligned. While the company acknowledges the financial, health and climate benefits of expanding plant-based protein offerings, it is unclear if animal agricultural supply chains are included in its scenario analysis.

The company has not yet reported a full breakdown of its Scope 3 emissions derived from animal agriculture, nor a breakdown by protein type. However, the company discloses that over 99% of its emissions are Scope 3 and that the vast majority (72%) of Scope 3 emissions are attributed to Purchased Goods & Services, which includes agricultural commodities.

The company recently set an SBTi 1.5°C aligned target to reduce absolute Scope 3 FLAG emissions by 30.3% by 2030, and 72% by 2050, from a 2021 base year.

The company does not report quantitative data relating to the emissions mitigation potential and/or financial opportunity of protein diversification. However, the company is scaling its portfolio in line with consumer demands and healthy living, while providing a more carbon friendly footprint, including through its offering of plant-based products. The company includes product reformulations and portfolio adjustments in its net zero plan, and recognises the financial opportunity in consumers demanding lower carbon products, investing in product renovation and innovation annually to meet consumer demand and help mitigate climate change associated with animal protein products.

The company highlights examples of new plant-based offerings across its markets to meet consumer demand, and recognises the climate benefits of plant-based products, including product reformulations with lower carbon ingredients and portfolio adjustments to grow low carbon product categories in its net zero plan. However, Kraft Heinz has not yet set a public protein diversification target.

Kraft Heinz has not yet set a public protein diversification target

Kraft Heinz has not yet set a public protein diversification target.

Kraft Heinz has not yet set a public protein diversification target.

Kraft Heinz has not yet set a public protein diversification target.

Kraft Heinz has not yet set a public protein diversification target.

The company's board-level compensation structure emphasises pay-for-performance and incorporates both short- and long-term incentives. The company links 20% of compensation for individuals such as its Chief Sustainability Officer to reaching ESG goals that cascade down the organisation, however, there is no evidence of incentivisation mechanisms linking board remuneration to progress on protein diversification or Scope 3 emissions reduction.

20% of the company's remaining board members are reported as having expertise in environmental stewardship and sustainability.

The company's board does not evidence expertise in nutrition/health.

The company discloses a list of its direct political lobbying activities in its largest US and EU markets, and a list of its public policy positions. Several issues that the company has lobbied on are relevant to its food business and protein diversification, such as plant-based labelling, the Farm Bill, animal welfare, ultra-processed foods, health, tomato seed exports, decarbonisation challenges for Europe and the food industry, and alternative protein research.

It is unclear if the company's disclosed lobbying actions related to its food business are aligned with positive climate and nutrition outcomes. The company takes a regional approach to its political advocacy, engaging in activity when a policy issue is important to its business and in districts where the company has a strong presence.

The company discloses associations it is a member to across its EU Transparency Register and US lobbying reporting. However, a dedicated list of all affiliations is not disclosed. In the US, Kraft Heinz is a member of the National Association of Manufacturers, and also states that it collaborates with a number of industry partners to reduce the impact of plastic packaging across multiple geographies and to reduce methane in its dairy supply chain. In the EU, the company discloses its membership to various associations, including FoodDrinkEurope and Culinaria Europe.

While the company discloses its trade association memberships in its US and EU markets, it has not conducted an assessment of alignment of its indirect lobbying activities with positive climate or nutrition outcomes.

Kraft Heinz does not yet have a public commitment to just transition principles.

In its net zero plan, the company commits to provide support, guidelines and training to its external manufacturers and suppliers to help reduce emissions throughout its value chain. The company will collaborate with industry peers, suppliers, and coalitions to drive Scope 3 reductions and increase regenerative agriculture, although it is unclear to what extent this covers animal agricultural supply chains.

Kraft Heinz has not disclosed specific initiatives to support its animal protein producers' transition to more sustainable practices. However, the company has disclosed efforts to support its crop growers to transition to more sustainable practices, such as engaging suppliers with its Sustainable Agriculture Practices Manual and supporting regenerative crop production through the "Sustainable Future Farming Fund".

The company has not yet disclosed a just transition strategy.

Although Kraft Heinz does not have a Just Transition strategy, the company has an explicit supplier engagement programme, where the company works with its suppliers as partners to showcase its Net Zero priorities. The company also communicates its key expectations for its suppliers and how they can collaborate to achieve a shared vision. Kraft Heinz has a Sustainable Agriculture Practices Manual, which informs its engagement with growers to transition to more sustainable practices, in line with the company's goal to achieve 100% sustainably sourced Heinz Ketchup tomatoes by 2025. Additionally, through the SAI Platform’s Regenerative Agriculture Programme, Kraft Heinz, together with 30 other corporates, plans to engage suppliers around regenerative farming with support mechanisms.

Kraft Heinz has not yet disclosed a just transition strategy and therefore has no associated KPIs.

Kraft Heinz has not yet disclosed a just transition strategy and therefore has no associated KPIs.

Kraft Heinz launched own brand plant-based products in its largest US and New Zealand markets in the past year. These include Not-Company Plant-Based Chipotle Mayo and Mac & Cheese Cups and the company's first vegan dessert, JELL-O Oat Milk Chocolate Pudding, in the US, and Wattie's Plant Proteinz Pasta in New Zealand.

There is no evidence that Kraft Heinz has allocated resource to improve the performance of alternative protein products in the past year.

Kraft Heinz has set a minimum health and nutrition requirement for its alternative protein source portfolio, however, this is not aligned with a government-endorsed nutrient profiling system. The company has set its own Global Nutrition Guidelines with a target for 85% of the company’s product portfolio, including its alternative protein source products under the NotCo brand and beans, soups, ready meals etc, to meet limitations on key nutrients of concern by 2025, however, it is unclear if the company's guidelines align with a government endorsed nutrient profiling system.

Kraft Heinz provides a high-level statement that it is reformulating products to improve nutrition, which includes alternative protein products. The company acknowledges the health benefits of plant-based ingredients by committing to increase positive nutrients and plant-based offerings, however, it is unclear to what extent plant-based (re)formulation contributes to meeting the company's Global Nutrition Targets for its portfolio. Additionally, the company provides several examples of reformulating inherently plant-based sauce products to reduce sugar and salt content, however, specific examples of alternative protein products reformulated with improved nutritional attributes are not disclosed.

There is no evidence that Kraft Heinz is reformulating alternative protein products to improve sustainability attributes. Although the company includes product reformulation with lower carbon ingredients as a lever to reduce Scope 3 emissions in its net zero plan, it is unclear to what extent this includes plant-based and alternative protein sources.

There is no evidence that Kraft Heinz has committed to marketing and merchandising strategies related to alternative proteins in its largest markets. Although, the company has a high level goal to bring plant-based offerings to the masses.

Kraft Heinz is marketing and merchandising alternative protein products in its largest US market by promoting its new plant-based product launches, such as under the NotCo brand on the company's and affiliated brands' websites, social media channels, and through press releases.

Kraft Heinz is working to ensure its alternative protein source products are accessible and affordable in its largest US market. The company aims to bring plant-based offerings to the masses and evidences price parity with animal counterparts for its first ever vegan dessert product launch in the past year. Additionally, the company seeks to offer familiar products and brands to consumers in a plant-based option so they do not need to drastically change their eating habits, such as its recent NotCo Mac & Cheese product launch in response to convenience being the primary purchase driver for millennial consumers.

Kraft Heinz has conducted consumer research investigating trends within the alternative protein sources sector. The company identifies taste as a typical barrier to the long-term success of plant-based products, so conducts regional trials of new products to enable greater uptake and repeat purchase upon wider launch in its largest US market. The company launched its NotCo Mac & Cheese product this year in response to convenience being the primary purchase driver for millennials. Additionally, the company identifies flavour trends to inform its plant-based product offering, such as this year's launch of NotMayo Chipotle Squeeze to meet growing demand for spicy condiments, with chipotle being a top-three flavour in the category. The company also launched a consumer competition across the UK where "dream" flavour combinations of Heanz Beanz were pitched and the most popular flavour secured a limited edition product on supermarket shelves.

Kraft Heinz has used consumer research relating to healthy diets to inform its marketing and merchandising strategy, however, it is unclear if this includes alternative protein sources. The company developed its International Recipe Guidelines to use healthier, on-trend carrier foods while minimising less desirable ingredients. The company also targets ''foodie'' consumers and beginner cooks with its trend and insight driven recipes on ''Food in a Minute'' from its Wattie’s brand in the New Zealand market. Although, it is unclear if these include alternative protein sources.