The Kraft Heinz Company | Disclosure of Pesticide Use in Agricultural Supply Chains at The Kraft Heinz Company

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
KHC
Lead filer
Resolution ask
Report on or disclose
ESG theme
  • Environment
  • Social
ESG sub-theme
  • Public health
  • Waste and pollution
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
United States
Resolved clause
Shareholders request that Kraft Heinz issue a report at reasonable cost and omitting proprietary information explaining if and how the company is measuring and whether it plans to disclose the use in its agricultural supply chains of pesticides that cause harm to human health and the environment.
Whereas clause
One third of every bite of food we eat is dependent on pollinators; but pollinator species are declining at alarming rates in significant part due to the use of toxic pesticides on farms. Pesticides also cause a number of serious human health effects from cancers to neurological damage.

The use of pesticides also threatens farmer resiliency and productivity due to proliferation of pesticide-resistant weeds and insects, loss of top soil, and soil degradation. Pesticides can cause harm to fenceline communities, pollute drinking water sources, and impair neighboring farmland.

Consumer advocates have begun testing for pesticides, including glyphosate, in food products, including processed foods, and consumer lawsuits have targeted manufacturers of foods containing pesticide residues.

In its Materiality Assessment, Kraft Heinz acknowledges that sustainable agriculture is highly important to both stakeholders and the company; yet, our company does not acknowledge the growing risks of pesticide use, which threatens sustainable agriculture and raises reputational and legal risks. Kraft Heinz has not disclosed if or how it tracks, reports, or reduces the use of synthetic pesticides in its agricultural supply chain, representing an important blind spot.

Other major food companies are taking action to address and report on pesticide risk:

General Mills discloses metrics for tracking and reporting pesticide use by suppliers in its regenerative agriculture program, including type and name of input, amount and method used, cost and date of application, and pest or disease being controlled. It also reports pounds of pesticides avoided.

Sysco reports annually on pesticide use avoided by suppliers using Integrated Pest Management ("IPM") -- reporting 6.3 million pounds avoided in 2018.

Kellogg's collects pesticide use data through an annual Grower Survey and has committed to phase out pre-harvest desiccation with glyphosate for those crops by 2025.

Campbell's has committed to reducing pesticide risk, starting with programs in three priority crops, including piloting a pesticide data collection and reporting tool in tomatoes and collecting pesticide use data in potatoes for future reporting.

In a competitive marketplace that is increasingly demanding clean food and reduced stakeholder and environmental harm, understanding and tracking supplier use of pesticides in the supply chain reduces risk for shareholders and our company, while reducing harm to stakeholders.
Supporting statement
While metrics are left to management discretion, shareholders recommend the company measure and disclose the following: Type and amount of pesticides avoided annually through targeted strategies like regenerative agriculture programs, IPM, or other methods; Priority pesticides for reduction or elimination; Targets and timelines, if any, for pesticide reduction.

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