Kraft Heinz, a leading player in the food and beverage industry, has announced its commitment to eliminating deforestation in its global supply chain by 2025. This new policy comes as an expansion of its 2018 sustainable palm oil policy, responding to pressure from shareholders.
The company, which owns popular brands such as Heinz Tomato Ketchup and Philadelphia Cheese, states, “We are dedicated to collaborating with our suppliers and business partners to achieve long-term transformation towards positive climate, biodiversity, and water outcomes.”
Developed with guidance from the Accountability Framework initiative and the Science Based Target Initiative, Kraft Heinz’s deforestation-free policy covers a range of raw materials, including palm oil, sugar, beef, dairy, cocoa, coffee, pulp, paper, and packaging. It prioritizes long-term protection and remediation where necessary.
The company’s Environmental, Social, and Governance (ESG) Reports highlight their commitment to achieving no-deforestation across deforestation-linked commodities by 2025. Furthermore, they aim to implement conversion-free practices by 2030, encompassing the reduction of greenhouse gas emissions, water consumption, and the preservation of biodiversity and natural habitats.
In addition to its deforestation goals, Kraft Heinz has set targets to reach net-zero greenhouse gas emissions by 2050 and to use 100% recyclable, reusable, or compostable packaging by 2025.
Green Century Funds, a mutual fund and shareholder of Kraft Heinz, credits its advocacy for the introduction of this new deforestation policy. Initially proposing that the company eliminate deforestation across its supply chains by 2025, Green Century has withdrawn its proposal for the upcoming annual meeting in 2023.
Annie Sanders, Director of Shareholder Advocacy at Green Century Funds, applauds Kraft Heinz’s commitment, emphasizing that key ingredients in their products, such as beef and palm oil, drive deforestation. She states, “We applaud the company’s commitment to eliminate deforestation from its supply chains, thereby helping to protect forests and biodiversity around the world.”
Deforestation is most prevalent in tropical regions like the Brazilian Amazon, where commodities like beef and soy are linked to widespread forest loss. The European Union has recently passed a law banning products related to deforestation.