We're implementing successful energy savings initiatives across our business.
Energy Use & Conservation
Energy Efficiencies in Manufacturing
Manufacturing our products to finished packaged goods and maintaining our highest standards around safety, quality and sanitation, all while providing a comfortable and secure environment for our employees to work, can consume significant amounts of energy. In this type of interdependent environment, we know many opportunities exist to reduce energy consumption through operational optimization. We are on a journey of continuous improvement to identify our greatest opportunities in this area and capitalize on them.
As a leading global food and beverage company, our scale provides a unique ability to test concepts at various sites, learn from ourselves, prove outcomes and then implement successful energy savings initiatives across our business.
One great example of this is in our new Nova Goiás, Brazil facility, where we produce several types of our iconic sauces and condiments. We began production from this facility in 2017. Building a new factory offers many opportunities to build in energy efficiencies from the outset, which in itself is inherently typically more efficient through utilization of new technologies and readily optimized infrastructure, versus retrofitting existing pathways. However, we also embrace the continual opportunity to improve at Kraft Heinz, and our ownership and meritocracy mentality helps drive us toward that improvement at all facilities.
We commit to decrease energy use by 15% across all Kraft Heinz manufacturing facilities by 2025.
Kraft Heinz is proud to announce that by 2025, the majority of our procured electricity (for all facilities globally) will be from renewable sources.
Another area of this work is in our global initiatives around cogeneration and biogas. Shortly after opening the Nova Goiás facility, we learned from our experience at other manufacturing sites that we could also capitalize on the nexus of water and energy sustainability in how we treat and improve our wastewater more broadly. The Nerópolis wastewater treatment system produces a residual biogas, which was initially burned. In 2018 we upgraded the facility to include what is akin to a miniature power plant, composed of generators, a gas treatment system and a gas storage tank, and then made some electrical distribution network adjustments to capture and meet the new requirements of utilizing gas in the system as a source of energy. As a result, we consumed 53% less energy in the first six months alone in 2019 compared to the same time in 2018. As an added benefit, the biogas being generated is a source of renewable energy and is also contributing to less GHG emissions than would otherwise be emitted through energy sources of fossil fuel use.
Renewable Electricity Sourcing
Kraft Heinz is committed to operating responsibly and doing its part in the critical global efforts to reduce the harmful impacts of climate change. A big component of that commitment is both reducing how much energy we source, as well as rethinking how we source it. That is why we have embarked upon energy optimization initiatives while prioritizing solar, cogeneration and biomass energy projects globally between 2017 and 2019.
In 2018, we began the two-year process of expanding our solar footprint at our manufacturing sites in the cities of Qingdao, Foshan and Shanghai in China. The combined energy production of these three sites accounts for approximately 2.6 million kilowatt hours of clean electricity annually across the three sites. These projects have offered a source of energy independence (Qingdao ~1/4th, Foshan and Shanghai ~ 1/10th each respectively) and collectively will remove approximately 2,028 tons of carbon dioxide from the atmosphere each year for the next two decades. Over the span of the solar arrays’ typical useful life, along with accounting for variation in efficiency factors over time, these projects will have removed the equivalent carbon that would be sequestered by roughly 8,800 acres (the same size of about 30 New Yorks) of forest for an entire year, while simultaneously providing an electricity cost savings to Kraft Heinz of approximately $1.3 million.
In July 2018, Kraft Heinz announced its commitment to establish Science Based Targets in line with the Science Based Target initiative (SBTi) and in regards to a 2oC trajectory. Since that announcement the Intergovernmental Panel on Climate Change (the United Nations body for assessing the science related to climate change), has updated its mitigation recommendation to match the current trajectory of climate change thresholds at 1.5oC.
In 2019, we engaged Quantis (a sustainability consulting firm) to help measure our carbon footprint across our entire global value chain, in accordance with the current 1.5oC mitigation efforts. We will align our targets with the SBTi and are working with partners to identify the best solutions to ensure we reduce our emissions accordingly throughout the value chain.
We estimate that roughly 80% of our total carbon footprint is produced from our suppliers, particularly in agriculture, and provides the greatest opportunity for increased collaboration. We will remain focused on optimizing our immediate operational footprint to lessen our impact on climate, while we increasingly investigate joint initiatives with our suppliers that ensure the highest quality products are produced, while being good stewards of the environment.
Kraft Heinz therefore renews its commitment to set a climate science target in accordance with the most current, credible and widely accepted climate science standards available, as we undergo a robust assessment process to achieve the same in 2020. In the meantime, we are not resting. We note where we can improve, are learning from our failures as well as our successes, and we are taking initiative to expand what we can achieve in energy reduction and renewable capacity today. For example, we are directly targeting significant reductions in our Scope 2 emissions under SBTi, by procuring the majority of our electricity from renewable sources for all facilities globally by 2025.
We're expanding our solar footprint.
- DPV installation capacity: 748 kW
- 1st Year clean energy generation: 870,000 kWh
- Qingdao Heinz renewable energy substitution rate: 23%
- Yearly CO 2 emissions reduction: 619 ton
- Yearly electricity cost savings: 140,000 RMB
- Total electricity cost savings in 20 years: 2,680,000 RMB
- Project on-site construction completed Aug. 2018
- DPV installation capacity: 787 kW
- 1st Year clean energy generation: 765,000 kWh
- Foshan Heinz renewable energy substitution rate: 11%
- Yearly CO 2 emissions reduction: 652 ton
- Yearly electricity cost savings: 155,000 RMB
- Total electricity cost savings in 20 years: 2,950,000 RMB
- Project on-site construction completed Aug. 2018
- DPV installation capacity: 915 kW
- 1st Year clean energy generation: 951,000 kWh
- Shanghai Heinz renewable energy substitution rate: 9%
- Yearly CO 2 emissions reduction: 757 ton
- Yearly electricity cost savings: 196,000 RMB
- Total electricity cost savings in 20 years: 3,740,000 RMB
- Project on-site construction completed Jan. 2019