Kraft Heinz: How to Make a Food & Drink Giant Sustainable
When it comes to sustainability, the true scale of Kraft Heinz's challenge becomes apparent in a single statistic.
The food and beverage giant, which owns some of the world's most popular brands, estimates that around 80% of its carbon footprint comes from its suppliers, with agriculture and ingredients making up the bulk of that figure.
As such, if Kraft Heinz wants to become a sustainable company, it may have to change the way farming is done around the world.
The US-based firm has committed to reaching net zero across all three emissions scopes by 2050, with an interim target of 50% reduction by 2030.
"To be the leader in elevating and creating food that makes you feel good," says Carlos Abrams-Rivera, the conglomerate's CEO.
Translating that ambition into measurable progress, however, demands coordinated action.
Farming at the frontline
When you hear the name Kraft Heinz, your mind will likely lead you to tomatoes, and rightly so. The company behind Heinz ketchup is by far the world's largest corporate tomato buyer.
As such, a great deal of its agricultural footprint centres on one crop – a remarkable thing for a business of its size.
The firm has set a goal to source 100% of Heinz ketchup tomatoes sustainably by the end of 2025, measured against its Sustainable Agriculture Practices Manual. The company says it is on track to make good on that pledge.
Kraft Heinz's sustainable agriculture framework sets out some detailed requirements across seven areas, including soil health, water management and integrated pest management.
Carlos describes his company's philosophy on this front as "equally focused on productivity, environmental stewardship and prosperity".
It's an outlook that is inspired by Henry John Heinz's century-old ethos: "In order to improve the product on the shelf you must first improve the produce in the ground."
Manufacturing momentum
Across its 75 manufacturing facilities, Kraft Heinz has managed to reduce its Scope 1 and 2 emissions substantially thanks to investments in a range of decarbonisation projects and through the procurement of a great deal of renewable electricity.
According to its 2024 ESG report, the firm sources 22.3% of its electricity from renewable sources, up from 7% in 2021, supported by virtual power purchase agreements including a 158 MW wind farm in Texas.
A little further from home, two of Kraft Heinz's Indonesian factories have successfully achieved emissions reductions of more than 95% compared to 2021 by replacing coal with sustainable biomass, installing solar systems and securing renewable electricity contracts.
The conglomerate's water use in high-risk watershed areas fell 19.5% against the 2019 baseline, nearly achieving the 20% reduction target through recycling programmes and efficiency measures.
That said, Kraft Heinz's progress on other manufacturing goals has proven far more difficult, especially when it comes to the issue of packaging.
Packaging remains a problem for Kraft Heinz
In 2023, Kraft Heinz announced a new commitment to reduce virgin plastic use by 20% by 2030 from a 2021 baseline.
By 2023, 87% of its packaging was recyclable, reusable or compostable.
Kraft Heinz became a founding member of the Circular Action Alliance, a non-profit organisation that promotes producer responsibility laws in California and Colorado.
The firm has made some exciting inroads when it comes to green packaging, including its recyclable lids for its Heinz ketchup bottles in the UK.
It has also incorporated 100% recycled content into its Kraft mayonnaise bottles in the US.
Scope 3 and supply chains at Kraft Heinz
As is the case with most companies, Scope 3 emissions make up the lion's share of Kraft Heinz's carbon footprint, measuring 24.3 million tonnes CO₂e in its most recent accounts.
In an effort to disseminate a culture of sustainability up and down its supply chain, the American company held its first supplier sustainability webinar in 2023, where its team shared net zero ambitions and sent its partners a starter kit for decarbonisation efforts.
Kraft Heinz also keeps a focus on upholding human rights across its network, with the likes of EcoVadis and Sedex helping it to complete due diligence regularly.
Notably, the company managed to source 100% of its palm oil through sustainable sources recently by working with certified suppliers.
Kraft Heinz acknowledges substantial work remains ahead, particularly in validating targets through the Science Based Targets initiative and improving Scope 3 data accuracy across its sprawling supply network.
