Corporate Responsibility Goal Methodology & Glossary
Goal Methodology
|
Goal |
Unit of Measure |
Baseline (year) |
Commitment Made (year) |
Target Completion (year*) |
Boundaries |
Exclusions |
Other/Comments |
|
Engage bottlers and select suppliers representing 50% of Scope 3 emissions to set a science-based target by 2024 |
% of Scope 3 emissions covered by bottler and supplier SBTs |
N/A |
2019 |
2024 |
The suppliers and bottlers targeted cover the Scope 3 categories of purchased goods and services, downstream transportation and distribution, processing of sold products and the end-of-life treatment of sold products. |
None |
Validated by SBTi. For more information on our GHG emissions calculation methodology and boundaries please refer to our CDP Climate Disclosure. |
|
Obtain 100% of electricity from renewable sources by 2025 |
Renewable electricity purchases as % of total electricity purchases |
N/A |
2019 |
2025 |
All KDP-owned and operated facilities’ electricity consumption is included. Consumption is estimated for some small sites. |
None |
Validated by RE100. |
|
Reduce Scope 1 and 2 emissions by 30% by 2030 |
MTCO2e (metric tons carbon dioxide equivalents) |
2018 |
2019 |
2030 |
The reductions targeted are against all KDP energy use from owned and operated assets and purchased electricity. |
Refrigerant leaks from HVAC systems in facilities. |
Validated by SBTi. For more information on our GHG emissions calculation methodology and boundaries please refer to our CDP Climate Disclosure. |
|
Reduce Scope 3 emissions in select categories by 15% by 2030 |
MTCO2e (metric tons carbon dioxide equivalents) |
2018 |
2019 |
2030 |
The reductions targeted cover the Scope 3 categories of purchased goods and services (PET and glass packaging), fuel and energy-related activities, upstream transportation and distribution and the use of sold products. |
None |
Included categories account for approximately 20% of our Scope 3 emissions. Validated by SBTi. For more information on our GHG emissions calculation methodology and boundaries please refer to our CDP Climate Disclosure. |
|
Improve our water use efficiency by 20% by 2025 |
% improvement in water use ratio (water use ratio = water withdrawal divided by total finished product) |
2017 |
2019 |
2025 |
Cold beverage manufacturing sites. |
Excludes coffee production, applesauce production, third-party production and all other cold beverage facilities that were not fully operational in the reporting year. |
Approach is aligned to Beverage Industry Environmental Roundtable definitions and approach. |
|
Partner with our highest water-risk operating communities to replenish 100% of water used in our beverages in those communities by 2030 |
% water replenished of volume used in products produced at highest water-risk sites |
N/A |
2019 |
2030 |
Ten focus communities were determined by a water risk assessment that utilized the Ecolab Water Risk Monetizer and the World Resources Institute’s Aqueduct Water Risk Atlas, and expert knowledge from LimnoTech. The locations are: Miami and Jacksonville, Florida; Houston and Irving, Texas; Sacramento, Vernon and Victorville, California; and Tecámac, Tehuacán and Tlajomulco, Mexico. Water replenishment project water volumes are calculated on a yearly basis (ML/yr), based on the annual volume benefit they deliver. Replenish volumes are only counted toward the cold beverage sites sharing the same watershed and only up to 100% of that site’s water use volume. |
None |
Prior to 2022, progress toward this goal was calculated as a percentage of the forecasted goal, not as a percentage of the reporting year’s water consumption for sites in scope. Following the expansion of the goal boundary from six to 10 sites, as well as extending the target completion year to 2030, performance for 2022 and 2023 is reported as volume replenished in the reporting year per volume of consumption in the reporting year. Duration of volumetric benefit varies and is based on project characteristics. Benefit duration is capped at 10 years. Validated by Limnotech. |
|
Convert 100% of packaging to be recyclable or compostable by 2025 |
% of total packaging by weight |
N/A |
2019 |
2025 |
Primary, secondary, and tertiary packaging from KDP-owned and operated food and beverage manufacturing facilities as well as packaging used for brewers. |
Third-party bottlers’ packaging material. Plastic strapping, adhesives, tapes, wood pallets, brewers, brewer components and brewer accessory packaging. |
Ongoing projects to recycle coffee brewers are additional to this goal. |
|
Use 30% post-consumer recycled content across our packaging portfolio by 2025 |
% of total packaging by weight |
N/A |
2019 |
2025 |
Primary, secondary, and tertiary packaging from KDP-owned and operated food and beverage manufacturing facilities as well as packaging used for brewers. |
Third-party bottlers’ packaging material. Plastic strapping, adhesives, tapes, wood pallets, brewers, brewer components and brewer accessory packaging. |
Ongoing projects to incorporate PCR in coffee brewers are additional to this goal. |
|
Use 25% post-consumer recycled content in our plastic packaging by 2025 |
% of total plastic packaging by weight |
N/A |
2019 |
2025 |
Primary, secondary, and tertiary plastic packaging from KDP-owned and operated food and beverage manufacturing facilities, as well as plastic packaging used for brewers. |
Third-party bottlers’ packaging material. Plastic strapping, adhesives, tapes, wood pallets, brewers, brewer components and brewer accessory packaging. |
Ongoing projects to incorporate PCR in coffee brewers are additional to this goal. |
|
Achieve a 20% virgin plastic reduction across our plastic packaging portfolio by 2025 |
% of virgin plastic packaging by weight |
2019 |
2019 |
2025 |
Primary, secondary, and tertiary virgin plastic packaging from KDP-owned and operated food and beverage manufacturing facilities as well as virgin plastic packaging used for brewers. |
Third-party bottlers’ packaging material. Plastic strapping, adhesives, tapes, wood pallets, brewers, brewer components and brewer accessory packaging. |
None |
|
Send zero waste to landfill across our operations by 2025 |
% solid waste, by weight, diverted from landfill |
N/A |
2019 |
2025 |
Solid waste at manufacturing sites only. |
Does not include offices or warehouses/distribution centers except in some instances of co-location with the manufacturing site, or any other properties that are not production facilities. Nonetheless, many of these excluded facilities have robust recycling and waste diversion practices. |
None |
|
Responsibly source our brewers and priority inputs |
% of responsibly sourced coffee by volume |
N/A |
2014 |
Ongoing |
All green coffee purchased by KDP for owned and partner brands. |
Soluble and freeze-dried coffee; other coffee-based ingredients; green coffee extract; green coffee or other coffee inputs purchased by partners. |
Accepted verification or third-party certification programs: Fairtrade International, Fair Trade USA, the Rainforest Alliance, 4C, AtSource Entry Verified by ofi, NKG Verified, RSP Advanced by Louis Dreyfus Company, Volcafe Verified, Volcafe Excellence, Sucafina, RGC Coffee 3E, Guaxupe Planet, ECOM SMS. |
|
% of responsibly sourced cocoa by volume |
N/A |
2021 |
Ongoing |
All cocoa purchased by KDP, including if sourced as a standalone ingredient or within a blended powder finished product; including if sourced directly or from a co-manufacturer or processor. |
Cocoa purchased by partners. |
Accepted verification or third-party certification programs. Purchased volumes validated by the Rainforest Alliance, Fair Trade USA and Fairtrade International. KDP’s evaluation tool to accept partner programs was independently reviewed by Conservation International and WWF. |
|
|
# of brewer suppliers that Meets or Exceeds Expectations in a social compliance audit |
N/A |
2021 |
Ongoing |
All KDP managed Tier 1 and Tier 2 brewer and brewer component suppliers. |
Contract manufacturer-managed Tier 2 suppliers and spot buy suppliers. |
Validated by third-party auditors. |
|
|
Support regenerative agriculture and conservation on 250,000 acres of land by 2030 |
Number of cumulative acres supported since 2022 |
N/A |
2021 |
2030 |
Coffee, corn (for high fructose corn syrup), apple supply chains. |
Coffee: Soluble and freeze-dried coffee; other coffee-based ingredients; green coffee extract; green coffee or other coffee inputs purchased by partners. Corn: corn starch, citric acid, erythritol, corn syrup, soluble corn fiber, gin, vodka, brown caramel color. Apple: purees, flakes. |
Methodology was developed in partnership with Terra Genesis International with significant stakeholder outreach to farmers, NGOs and industry organizations. All regenerative agriculture and conservation projects follow the guidelines established in KDP’s Regenerative Agriculture & Conservation Monitoring and Evaluation Guide. One project, implemented in KDP’s coffee supply base by Root Capital, also necessitates application of a calculation that assumes an 80% overlap of land area where the qualifying outcomes have been supported. |
|
Provide positive hydration in 60% of our products by 2025 |
% of total number of KDP products; U.S. sales |
N/A |
2021 |
2025 |
U.S. sales only. Positive hydration is defined as a product that provides a serving of fruits or vegetables (with no added sugar) OR is 40 calories or less per serving with a functional attribute or at least 10% Daily Value of a nutrient to encourage. Serving size is defined on product label. A product is defined as any unique portion size of a beverage or sauce. Includes all hot, cold, owned, licensed and partner brands and fountain beverages. |
Excludes multi-packs, co-packed brands and private label. |
Validated by PHA. |
|
Increase female representation in Director+ positions by 25% to 33% of the total by 2025 |
% of Director+ employees |
2020 |
2021 |
2025 |
Director+ employees in all geographies. |
All employees below Director-level. |
None |
|
Increase people of color representation in Director+ positions by 25% to 21% of the total by 2025 |
% of Director+ employees |
2020 |
2021 |
2025 |
Director+ employees in the U.S. only. |
All employees below Director-level. |
None |
*Goals will be met by the end of the specified year
Glossary
|
Term |
Definition |
|
Circular Economy & Circularity |
Terms used to describe the efforts made to design products, packaging and processes for durability, reuse, recycling and/or composting while helping to support the necessary infrastructure to enable circularity. |
|
Compostable Packaging |
Packaging that is able to be broken down into carbon dioxide, water and biomass within a specific time frame under specific conditions. This can mean either home compostable (at specific temperatures and with a natural microbial community) or industrially compostable (under increased temperatures, humidity and specifically formulated microbial conditions). Compostable material can be made from either bio-based or petrochemical inputs and is subject to third-party certification. |
|
Consumers |
People who buy and use our products for the purpose of personal use and consumption. |
|
Customers |
Retailers that buy products from KDP and sell to consumers. |
|
Extended Producer Responsibility |
A policy approach that assigns producers responsibility for the end-of-life of their products. This can include both financial responsibility and operational responsibility. |
|
Fleet Decarbonization |
Efforts to remove or reduce the levels of carbon emissions (such as carbon dioxide) caused by or involved in fleet operations. |
|
GHG Emissions – Scope 1, 2 and 3 |
Scope 1 emissions Direct GHG emissions from sources that are controlled or owned by KDP (e.g. fuel used in fleet and manufacturing). |
|
Scope 2 emissions Indirect GHG emissions associated with the purchase or operations of sources that are not controlled or owned by KDP (e.g. electricity). |
|
|
Scope 3 emissions Indirect GHG emissions from sources not owned by the company throughout our value chain (e.g. upstream transportation, materials processing, use of sold products, etc.). |
|
|
Net Positive Water Impact |
Efforts to reduce water stress by focusing on water availability, quality and access and that contributions exceed impacts on water stress in the same region, as quantified by established methodologies and measured via both short-term outputs and long-term outcomes. |
|
Positive Hydration |
Positive hydration When a KDP product provides a serving of fruits or vegetables (with no added sugar) OR is 40 calories or less per serving with a functional attribute or at least 10% Daily Value of a nutrient to encourage. |
|
Functional attribute A food product that together with its basic nutritional impact has a beneficial effect on one or more functions of the human organism either improving the general physical conditions or/and decreasing the risk of the evolution of disease. |
|
|
Nutrient to encourage Essential nutrients such as protein, fiber, vitamins and minerals. |
|
|
Priority Inputs |
Materials of importance to KDP’s business, including apple, apple juice concentrate, cocoa, coffee, corn and tomato paste, as well as certain of our brewer components critical to brewer function and quality. Priority status is determined by the input’s importance to KDP by magnitude of spending, its social and environmental risk profile and our unique opportunity for impact within the supply chain. |
|
Recyclable Packaging |
Packaging for which design is not a barrier to the packaging being successfully collected, sorted and reprocessed into another material, a product component or a recycled raw material. Packaging we consider to be recyclable includes materials and formats for which recovery, sortation and end markets exist or can practically be scaled across North America, noting that many communities may not accept or sort certain materials or formats today. We likewise consider plastic packaging to be recyclable if it is deemed “recyclable with detrimental qualities” by the APR. |
|
Regenerative Agriculture & Conservation |
Regenerative Agriculture is a holistic, localized approach to agricultural production and land management that seeks to mitigate climate change, increase soil health, support resilient landscapes and improve farmer livelihoods. Conservation is the act of bringing non-agricultural land into conservation protection or supporting an increase in protections and/or stewardship on already conserved lands. |
|
Responsible Sourcing |
Our approach to help safeguard fundamental human rights and environmental protections across our supply chain. For coffee and cocoa, we rely on verification or third-party certification programs. For factory-based inputs, we employ KDP’s Supplier Rating System. |
|
KDP-managed Brewer Suppliers |
KDP-managed brewer component suppliers Suppliers that are critical to brewer function and quality where KDP negotiates volume and price. These include all Tier 1 Brewer Suppliers and a portion of Tier 2 Brewer Suppliers. |
|
Tier 1 brewer suppliers Contract manufacturers that assemble our brewers. |
|
|
Tier 2 brewer suppliers Component suppliers that provide component parts to final assembly manufacturers. |
|
|
Value Chain |
A value chain is the complete journey of a product or process, covering all stages from material sourcing to end-of-life. It includes sourcing, production, distribution and disposal, highlighting the interconnectedness of each step. |
|
Virgin Plastic |
Newly manufactured resin produced from petrochemical or biomass feedstock used as the raw material for the manufacture of plastic products and which has not been used or processed before. |
|
Workforce Definitions |
“Director+ Professional” – CEO, CFO, ELT, SVP, VP, Sr. Director, Director “Other Professional” – Any employee with a pay rate type of salaried, below Director “Hourly”- Any employee with a pay rate types “Hourly-Bi-weekly”, “Hourly-Weekly”, “Daily”, “Commission Only” |