Environment

As this report discusses, our Company is on track to achieve or surpass our goal of reducing greenhouse gas emissions, solid waste, water usage and energy consumption by at least 20% by Fiscal Year 2015.

Heinz is making a difference as a global food company that is reducing our environmental footprint and protecting the planet’s natural resources for future generations.

To accelerate our commitment to environmental stewardship, Heinz launched a global initiative in May 2008 that set aggressive sustainability goals and targets for the first time. As this report discusses, our Company is on track to achieve or surpass our goal of reducing greenhouse gas (GHG) emissions, solid waste, water usage and energy consumption by at least 20% by Fiscal Year 2015.

We are also making progress toward achieving our other five global sustainability goals:

• Packaging
• Agriculture
• Transportation
• Renewable Energy
• Employee Engagement

Our nine sustainability goals are highlighted in the dashboard above. You can read more about our progress in each area by clicking on the hyperlink for each icon.

In the next reporting cycle, the Company will reassess and update our goals, where appropriate. The new assessment and metrics will represent current progress, external assurance results and a vision for future optimization.

In Fiscal Years 2010 and 2011, the Company expanded the data collection process in a continuous improvement program. We enhanced the Web-based reporting system to facilitate more complete and accurate data from various functions of our global operations, including manufacturing facilities, suppliers and employees. While the measurement metrics for greenhouse gas (GHG) emissions, energy consumption, water consumption and waste amounts are standardized for all Heinz regions worldwide, we have developed an internal standard for the measurement process for our other areas of focus.

 

Our Approach to Environmental Management

We recognize that our food growers use many acres of land and that a great deal of water and energy are consumed throughout the manufacturing process. We also know that our activities create GHG emissions and waste, which is why Heinz has been on a continuous improvement journey to address our environmental impacts, streamline processes and formalize the tracking and measurement of sustainability initiatives. We continually strive to find new ways to protect our planet and improve the efficiency of our Company as we grow, process, package and transport our food products to consumers around the world.

At Heinz, Environmental and Sustainability Risk Management processes are integrated into our Office of Risk Management and Enterprise Reputation and Risk Management function. Additionally, we have a global team of cross-functional leaders that contribute to our Global Sustainability Council. This council allows for the sharing of best practices from facility to facility across regions.

Operations Risk Managers at each Heinz factory are responsible for the safety and environmental impacts of the plant. They monitor compliance with environmental and safety regulations and develop and coordinate programs for energy management, GHG reductions, recycling, packaging waste and waste disposal. In the past reporting cycle, Heinz did not receive any significant fines or sanctions for non-compliance with environmental laws and regulations.

Annually, we perform a bottom-up/top-down risk assessment by functional area, including Environmental and Sustainability, and develop action plans and monitoring for all identified items. The risk assessment process utilizes best practices from Heinz affiliates around the world and primarily focuses on environmental matters that could impact Heinz’s ability to achieve its objectives. Direction and guidance is provided by the Office of Risk Management. This process encompasses all aspects of our business. The global annual risk assessment results are communicated with Executive Management and the Board of Directors.

In 2011, the Company disclosed potential financial implications for risks that are closely aligned with either global carbon consumption or potential negative consequences from significant environmental changes in our Securities and Exchange Commission Form 10-K Item 1A Risk Factors disclosure, as well as in our Cautionary Statements contained in our periodic reports and press releases. These disclosed potential risks include:

• Increases in the cost and restrictions on the availability of raw materials, such as agricultural commodities and packaging materials. These risks could potentially impact Heinz’s ability to respond by increasing product prices and managing profitability.
• The potential adverse impact of weather, natural disasters such as flooding and crop failures, fire, or a pandemic, which could decrease the availability of raw materials, including agricultural products, could increase costs, and could have a negative impact on the financial results of the Company.
• Also note, in our Securities and Exchange Commission Form 10-K Item 1A Risk Factors, we refer to the weather and/or environmental regulations in five of our 12 risk factors.

Click Here for Heinz Form 10-K 2011