Kellogg’s

Sustainable development strategy
Through its Better Days sustainability strategy, Kellogg’s aims to positively impact the lives of 3 billion people by the end of 2030. As part of this strategy, the company sets overarching objectives relating to nutrition, food security, the environment and human rights. These objectives are translated into several 2030 targets, against which Kellogg’s reports annually. Lastly, the company demonstrates that it has conducted materiality assessments to determine prioritisation within its sustainability strategy.

Food loss and waste
Kellogg’s demonstrates leading practice by setting a target to reduce organic waste, including food waste, in its operations by 50% in 2030 and reporting on progress annually. Moreover, the company is a member of the World Resource Institute´s Champions 12.3 coalition and demonstrates that it is working with value chain partners, such as farmers, to prevent food waste.

Plastic use and packaging waste
By setting a target to achieve 100% reusable, recyclable or compostable packaging by the end of 2025 and reporting progress against this target, Kellogg’s demonstrates leading practice in reducing plastic use and packaging waste. In its 2019/2020 reporting, the company demonstrated that 76% of its packaging currently meets these criteria.

Soil health and agrobiodiversity
Kellogg’s demonstrates leading practice in improving soil health and agrobiodiversity. As part of its Kellogg’s Origins programme, the company has set a goal to responsibly source 100% of its ten priority ingredients, including palm oil and coffee. Responsible sourcing criteria include regenerative agricultural methods and practices that improve biodiversity. The company reports on the percentage of priority ingredients that are responsibly sourced and demonstrates it has already achieved sourcing 100% of its sugar beets and vanilla responsibly.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Governance and accountability for sustainable development
Kellogg’s demonstrates having teams responsible for carrying out its sustainability activities and discloses that the ultimate responsibility and accountability for the implementation of its sustainability strategy lies with the board of directors. While the company discloses that many senior leaders have annual performance goals tied to the company’s corporate responsibility metrics, it is not clear whether this directly affects their remuneration.

Stakeholder engagement
Kellogg’s discloses evidence of stakeholder activities covering topics in all measurement areas of the Food and Agriculture Benchmark as well as how it integrates outcomes of these activities into its sustainability strategy. However, Kellogg’s can improve its disclosure on its process for identifying stakeholder groups with whom to engage.

Scope 1 and 2 greenhouse gas emissions
Kellogg’s has set a target to reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions by 65% in 2050 and reports on progress annually. The target is aligned with a well-below 2-degree trajectory. Therefore, there is an opportunity for Kellogg’s to align its target with a 1.5-degree trajectory.

Scope 3 greenhouse gas emissions
Kellogg’s has set a target to partner with its suppliers to reduce scope 3 GHG emissions by 50% in 2050, which is aligned with a well-below 2-degree scenario. While the company reports on the percentage of suppliers with which it has engaged to achieve this target, no reporting on reductions in scope 3 emissions was found. There is an opportunity for Kellogg’s to provide disclosure on its reductions in scope 3 emissions as well as to align its target with a 1.5-degree trajectory.

Protection of terrestrial natural ecosystems
Kellogg’s discloses activities to achieve deforestation and conversion-free (DCF) palm oil and soya supply chains and demonstrates that it has achieved a 100% DCF supply chain for palm oil certified by the Roundtable on Sustainable Palm Oil. However, the company does not disclose activities to achieve DCF supply chains for its other high-risk commodity cocoa. In addition, the company has an opportunity to set targets to achieve DCF supply chains for all of its high-risk commodities and report on the percentage of these commodities that are DCF.

Availability of healthy foods
While Kellogg’s reports on the percentage of products containing a source of fibre and vitamin D and the percentage of cereals fortified with micronutrients, it is not clear how the company is addressing the reduction of sugar, salt and fat across its product portfolio. Kellogg’s therefore has an opportunity to disclose quantitative evidence of its reformulation activities to reduce the level of salt, sugar and fat and/or increase the level of micronutrients and wholegrains in its products.

Accessibility and affordability of healthy foods
The company does not disclose a commitment and activities to improve the accessibility and affordability of healthy foods for vulnerable groups.

Responsible marketing
Kellogg’s discloses a responsible marketing policy aligned with international guidelines which include provisions on marketing to children. However, the company has an opportunity to disclose activities promoting healthy food..

Food safety
Kellogg’s states that all its facilities meet or exceed Global Food Safety Initiative (GFSI) standards and discloses that all facilities in North America are certified to a GFSI-recognised food safety scheme. However, the company does not disclose information on certifications for its operations outside of North America nor for its suppliers.

Land rights
Kellogg’s requires suppliers to recognise and respect the legitimate tenure rights related to the ownership of land of local communities. Moreover, the company specifies that all new land developments should follow the principles of free, prior and informed consent. Grievances can be reported through the company’s grievance mechanism, which is open to external individuals and communities. Kellogg’s can further improve reporting on this topic by disclosing its remediation process for land rights related grievances.

Forced labour
Kellogg’s commits to prohibiting forced labour in its operations and requires its suppliers to adhere to the same standard. While the company requires its suppliers to respect workers’ rights to collective bargaining and freedom of association and not to interfere with workers seeking to exercise these rights, the company does not provide a policy statement committing to respect these rights in its own operations.

Living wage
Kellogg’s discloses that it applies wages at a rate that is comparable with relevant industry living wage standards in its operations but does not disclose its definition of a living wage. Therefore, it is unclear whether wages paid to workers are sufficient to cover basic needs and discretionary income for a worker and his or her family. Moreover, Kellogg’s encourages its suppliers to conduct living wage assessments and compensate workers accordingly. However, it does not include living wage requirements in its contracts with suppliers nor set a target to pay workers in its supply chain a living wage. Therefore, Kellogg’s has an opportunity to disclose targets to pay workers in its supply chain and operations a living wage or demonstrate that it has already achieved doing so.

Farmer and fisher productivity and resilience
As part of its Better Days strategy, Kellogg’s aims to support 1 million farmers and workers by the end of 2030 through programmes focused on climate, social and financial resilience. While the company reports on the scope of its programme, through metrics such as the number of farmers reached, it has an opportunity to demonstrate that it is measuring the impact of its activities and communicate these externally.

Kellogg’s commits to respecting the human rights of its workers and ILO core labour rights in its supply chain. While the company also commits to respecting the majority of ILO core labour rights in its own operations, no policy statement committing to respect freedom of association and workers’ right to collective bargaining was found. Kellogg’s has a human rights due diligence process in place as well as a grievance mechanism accessible to workers and third parties. However, it does not provide examples of engagement with affected and potentially affected stakeholders.

Kellogg’s commits to respecting the health and safety of workers, places similar expectations on suppliers and monitors their performance. While the company provides some quantitative information, no reporting on the main types of work-related injuries and the number of hours worked was found. Regarding working hours, the company prescribes that all overtime must be voluntary and paid at a premium rate but does not commit to limiting working hours to 60 hours a week including overtime. Kellogg’s discloses that 49% of workers are covered by collective bargaining agreements but does not demonstrate how it supports collective bargaining in its supply chain. Currently, 38% of Kellogg’s board members are women, and the company reports on the proportion of its workforce for each employee category by gender. However, the company lacks disclosure on other markers of diversity, such as age and ethnicity, and does not disclose its gender pay gaps for all operations.

Kellogg’s commits to protecting personal data and has a privacy statement on its use. However, in this privacy statement, the company only provides the right to access the data to residents of California. Kellogg’s discloses its global tax strategy and approach to lobbying and political engagement. While the company discloses information on income tax payments per region, it does not do so on a country-by-country basis. The company also does not specify that it prohibits political contributions, and no reporting on lobbying expenses was found. Kellogg’s prohibits bribery and corruption in its operations, includes clauses in its contracts with business relationships and has a grievance mechanism. However, it does not disclose its process for identifying related risks and impacts.