The Kraft Heinz Company - Climate Change 2018
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The Kraft Heinz Company - Climate Change 2018 C0. Introduction C0.1 (C0.1) Give a general description and introduction to your organization. The Kraft Heinz Company (NASDAQ: KHC) is the fifth-largest food and beverage company in the world. A globally trusted producer of delicious foods, The Kraft Heinz Company provides high quality, great taste and nutrition for all eating occasions whether at home, in restaurants or on the go. The Company’s iconic brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta. The Kraft Heinz Company is dedicated to the sustainable health of our people, our planet and our Company. C0.2 (C0.2) State the start and end date of the year for which you are reporting data. Start date End date Indicate if you are providing emissions data for past Select the number of past reporting years you will be providing reporting years emissions data for Row January 1 December 31 No <Not Applicable> 1 2017 2017 Row <Not <Not <Not Applicable> <Not Applicable> 2 Applicable> Applicable> Row <Not <Not <Not Applicable> <Not Applicable> 3 Applicable> Applicable> Row <Not <Not <Not Applicable> <Not Applicable> 4 Applicable> Applicable> C0.3 (C0.3) Select the countries/regions for which you will be supplying data. Australia Brazil Canada China Costa Rica France India Indonesia Italy Netherlands New Zealand Papua New Guinea Russian Federation South Africa Spain United Kingdom of Great Britain and Northern Ireland United States of America Venezuela (Bolivarian Republic of) CDP Page 1 of 55 C0.4 (C0.4) Select the currency used for all financial information disclosed throughout your response. USD C0.5 (C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your consolidation approach to your Scope 1 and Scope 2 greenhouse gas inventory. Operational control C-AC0.6/C-FB0.6/C-PF0.6 (C-AC0.6/C-FB0.6/C-PF0.6) Are emissions from agricultural/forestry, processing/manufacturing, distribution activities or emissions from the consumption of your products – whether in your direct operations or in other parts of your value chain – relevant to your current CDP climate change disclosure? Relevance Agriculture/Forestry Elsewhere in the value chain only [Agriculture/Forestry/processing/manufacturing/Distribution only] Processing/Manufacturing Direct operations only [Processing/manufacturing/Distribution only] Distribution Elsewhere in the value chain only [Agriculture/Forestry/processing/manufacturing/Distribution only] Consumption Yes [Consumption only] C-AC0.6b/C-FB0.6b/C-PF0.6b (C-AC0.6b/C-FB0.6b/C-PF0.6b) Why are emissions from agricultural/forestry activities undertaken on your own land not relevant to your current CDP climate change disclosure? Row 1 Primary reason Do not own/manage land Please explain Emissions from agricultural/forestry initiatives are relevant to our climate change disclosure but they are not part of our direct operations as we do not own land but instead source our ingredients and raw materials from global supply chains. These emissions are determined and disclosed as part of our Scope 3 accounting work. C-AC0.6f/C-FB0.6f/C-PF0.6f (C-AC0.6f/C-FB0.6f/C-PF0.6f) Why are emissions from distribution activities within your direct operations not relevant to your current CDP climate change disclosure? Row 1 Primary reason Other, please specify (We do not own our distribution fleet) Please explain We contract product distribution work to external partners globally. Such emissions from these activities are captured under our Scope 3 disclosure. CDP Page 2 of 55 C-AC0.7/C-FB0.7/C-PF0.7 (C-AC0.7/C-FB0.7/C-PF0.7) Which agricultural commodity(ies) that your organization produces and/or sources are the most significant to your business by revenue? Select up to five. Agricultural commodity Other, please specify (Dairy) % of revenue dependent on this agricultural commodity Please select Produced or sourced Sourced Please explain It is estimated that the percentage of revenue dependent on this commodity is in the range between 25 to 30%. Agricultural commodity Wheat % of revenue dependent on this agricultural commodity Please select Produced or sourced Sourced Please explain It is estimated that the percentage of revenue dependent on this commodity is between 10 and 15%. C1. Governance C1.1 (C1.1) Is there board-level oversight of climate-related issues within your organization? Yes C1.1a (C1.1a) Identify the position(s) of the individual(s) on the board with responsibility for climate-related issues. Position of Please explain individual(s) Director on The board of directors helps establish and oversee our global CSR objectives and framework, including matters related to our supply chain, the board environment, nutrition and well-being, and social issues. Members review relevant policies, processes and commitments, and receive updates from the CSR team on progress against key performance indicators and other relevant developments. C1.1b CDP Page 3 of 55 (C1.1b) Provide further details on the board’s oversight of climate-related issues. Frequency Governance Please explain with mechanisms which into which climate- climate- related related issues issues are are integrated a scheduled agenda item Scheduled Reviewing and Our Board of Directors plays a crucial role in helping us live our Vision: To Be the Best Food Company, Growing a Better World. The – some guiding Board establishes corporate policies, sets strategic direction and oversees management, with such management being responsible for meetings strategy day-to-day operations. Specific to corporate social responsibility (CSR), the Board helps to establish and oversee our global CSR Reviewing and objectives and framework, including matters related to our supply chain, the environment, nutrition and well-being, and social issues. guiding major Members of the Board review significant CSR policies, processes and commitments, and receive updates from the CSR team on plans of action progress towards key CSR objectives and other relevant developments. The “CSR team” includes the Head of Global CSR, the Senior Reviewing and Vice President of Corporate and Government Affairs and the Chief Procurement Officer. guiding risk management policies Reviewing and guiding annual budgets Setting performance objectives Monitoring implementation and performance of objectives Overseeing major capital expenditures, acquisitions and divestitures Monitoring and overseeing progress against goals and targets for addressing climate-related issues C1.2 (C1.2) Below board-level, provide the highest-level management position(s) or committee(s) with responsibility for climate- related issues. Name of the position(s) and/or Responsibility Frequency of reporting to the board on climate-related issues committee(s) Chief Executive Officer (CEO) Assessing climate-related risks and Annually opportunities C1.2a CDP Page 4 of 55 (C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate-related issues are monitored. Our Board of Directors plays a crucial role in helping us live our Vision: To Be the Best Food Company, Growing a Better World. Comprised of diverse, experienced and qualified directors with strong leadership credentials, our board takes a thoughtful and tailored approach to our business. The board 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 CSR objectives and framework, including matters related to our supply chain, the environment, nutrition and well-being, and social issues. Members review all relevant policies, processes and commitments, and receive frequent updates from the CSR team on progress against key performance indicators and other relevant developments. Our Executive Leadership Team provides oversight and executional leadership for our global CSR strategy. The Executive Leadership Team is led by Chief Executive Officer Bernardo Hees, and includes 18 executives representing a variety of disciplines, including Finance, Sales, Operations, Procurement, Marketing, Research and Development, Human Resources, Legal and Corporate Affairs. The Executive Leadership Team receives biannual progress reports from the CSR team, including topics related to climate- related issues. C1.3 (C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets? Yes C1.3a CDP Page 5 of 55 (C1.3a) Provide further details on the incentives provided for the management of climate-related issues. Who is entitled to benefit from these incentives? Other, please specify (EVP Operations) Types of incentives Monetary reward Activity incentivized Energy reduction target Comment Who is entitled to benefit from these incentives? Other, please specify (Associate Director of International Engr) Types of incentives Monetary reward Activity incentivized Energy reduction target Comment Who is entitled to benefit from these incentives? Chief Procurement Officer (CPO) Types of incentives Monetary