The Kraft Heinz Co: Disclosure of Regenerative Agriculture Practices

WHEREAS: Industrial agriculture’s reliance on synthetic pesticide use demonstrably harms soil health, water quality, farm resilience, biodiversity, climate, and the health of farmworkers and nearby communities.

Conventional farms apply over one billion pounds of synthetic pesticides annually, decreasing the populations of soil microorganisms essential to soil carbon sequestration, nutrient and water retention, soil fertility, and farm resilience.[1] Soil degradation and erosion associated with conventional farming practices are increasingly reducing food security, with soil erosion alone costing $8 billion annually to the global GDP.[2]

Agricultural pesticide use also causes long-term health impacts to farmworkers, including cancer, birth defects, cognitive impairment, and acute pesticide poisoning resulting in approximately 11,000 deaths annually.[3]

In contrast, regenerative farming practices that vastly reduce synthetic pesticide use regenerate healthy soils, increasing resilience and profitability, while reducing impacts on humans and the environment.[4] The Boston Consulting Group finds that farmers using regenerative agriculture practices experience increased resiliency, a 70 to 120 percent profit increase, and a return on investment of 15 to 25 percent over 10 years.[5] The Rodale Institute reports that, based on data from farming and pasture trials, regenerative agriculture without synthetic pesticide use can sequester more carbon than is annually emitted.[6]While Kraft Heinz states, in its CDP responses, that regenerative agriculture is a decarbonization lever for achieving its net zero greenhouse gas emissions by 2050[7] goal, it does not identify pesticide reduction as an essential component for achieving the soil carbon sequestration necessary to meet its emissions reduction goal. This represents an important blind spot and raises the potential for greenwashing claims against the Company.

In contrast, other major food companies are adopting pesticide reduction practices, and quantitatively reporting outcomes of such practices, as a critical component of their sustainable agriculture programs and goals:

Conagra adopted regenerative agriculture as a key component of its farm management program to reduce pesticide use and support soil health. The company reports that its regenerative agriculture practices avoided 145,000 gallons of soil fumigants and 8,700 gallons of post-emergence herbicides in its supply chain since 2021.[8]

Lamb Weston disclosed a goal to reduce its active ingredient pesticide use by 5% by 2030 through its regenerative and sustainable agriculture program and practices.[9]
Campbell’s adopted regenerative agriculture practices in its tomato and potato supply chains and publicly reports the percentage of pesticides avoided using such practices.[10]

In a competitive marketplace that increasingly demands clean food, greenhouse gas reduction, and reduced human and environmental harm, understanding and disclosing supplier use of pesticides as part of a successful regenerative agriculture program can reduce risk for shareholders and our Company, while minimizing harm to stakeholders and ecosystems.

BE IT RESOLVED: Shareholders request that Kraft Heinz assess and report on the costs and benefits of including pesticide reduction goals as part of an effective regenerative agriculture program.

[1] https://ehjournal.biomedcentral.com/articles/10.1186/s12940-019-0488-0; https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2984095/#:~:text=Heavy%20treatment%20of%20soil%20with,fungi%2C%20then%20the%20soil%20degrades.

[2] https://www.sciencedirect.com/science/article/pii/S0264837718319343

[3] https://pubmed.ncbi.nlm.nih.gov/33287770/

[4] https://www.cbf.org/issues/agriculture/regenerative-agriculture.html#:~:text=Minimize%20the%20physical%2C%20biological%2C%20and,resources%20don't%20wash%20away.

[5] https://www.bcg.com/publications/2023/regenerative-agriculture-profitability-us-farmers#:~:text=Over%20time%2C%20however%2C%20and%20once,to%2025%25%20over%2010%20years.

[6] https://rodaleinstitute.org/wp-content/uploads/rodale-white-paper.pdf

[7]https://www.cdp.net/en/formatted_responses/responses?campaign_id=83630982&discloser_id=1036323&locale=en&organization_name=The+Kraft+Heinz+Company&organization_number=58857&program=Investor&project_year=2023&redirect=https%3A%2F%2Fcdp.credit360.com%2Fsurveys%2F2023%2Fjwbhd7d6%2F292658&survey_id=82591262

[8] https://www.conagrabrands.com/citizenship-reports/conagra-brands-citizenship-report-2023, p.21

[9] https://esg.lambweston.com/lambweston-2023-esg.pdf, p.39

[10] https://www.campbellsoupcompany.com/wp-content/uploads/2023/06/2023-IPM-Reporting.pdf

Resolution Details

Company: The Kraft Heinz Co.