Responsible Sourcing

The ongoing success of our business depends on farmers, the people who grow the crops that we use in the foods we produce that are enjoyed by people around the world. We intend to help build resilient, responsible supply chains through our commitment to meet our responsible sourcing goals for priority ingredients.  

Our Commitment

As part of our Kellogg’s Better Days Promise goal to create better days for 3 billion people by the end of 2030, we are committed to supporting 1 million farmers and agronomists and to building resilient and responsible supply chains for our priority ingredients. In accordance with our Better Days methodology, we select our priority ingredient for responsible sourcing with regular environmental, social, & governance (ESG) materiality assessments. Our most recent assessment took place in 2021.

Our Approach

Our strategies include a combination of direct investment at origin, third-party certification and continuous improvement at a farm level. The strategies chosen address salient environmental and social opportunities, as well as issues where we source our ingredients.

Direct Investment and Certification

For crops like sugar cane, palm oil, and cocoa, we source our priority ingredients using a combination of third-party certification and direct investment in our sourcing regions to address more severe impacts to people and planet, including but not limited to deforestation and human rights risks. Certification schemes like the Roundtable for Sustainable Palm Oil provide the foundation for responsible sourcing of these ingredients.

We also invest in on-the-ground interventions to support farmers, including smallholder producers in regions with systemic challenges that supply chain models have only partially addressed to date. These direct investments are all included in our Kellogg’s Origins program. We created Kellogg’s Origins to build partnerships with farmers that support their climate, social and financial resiliency. We work with our ingredient suppliers, research institutions and non-profit organizations around the world to provide farmers and workers in our sourcing regions with on-the-ground training and technical assistance they need to improve farm productivity, regenerate soil health, protect species and habitats, reduce greenhouse gas emissions and improve their livelihoods in ways that protect and respect human rights.

In addition to each project’s environmental or social outcomes, we track and report the numbers of farmers and agronomists engaged by participation in training on any of the above topics, receipt of technical assistance or inputs, receipt of project funding, or receipt of other educational resources to help change agricultural, business or financial practices. Each participant is tracked as one person engaged.

For more information about our direct investment projects, please visit the Global Kellogg’s Origins interactive map.


Continuous Improvement

For row crops including corn, wheat, rice, potatoes, fruits and sugar beets, we source our priority ingredients by measuring continuous improvement at the field and farm levels across key environmental and social indicators of sustainable, responsible agriculture. In partnership with our suppliers, we have used or accepted industry-standard survey tools and calculators, including the Cool Farm Tool, Field to Market’s® Fieldprint® Platform or SAI Platform’s Farm Sustainability Assessment. Where equivalent industry tools are not available, we have used the Kellogg Grower Survey, an annual farm management survey that we developed and first launched in 2016 to document and measure on-farm management decisions with farmers over time.

Each year, we collaborate with suppliers, project partners and farmers to collect this data and share results with suppliers and producers. This annual process helps to identify opportunities with suppliers and farmers to support improvements. Our continuous improvement survey tools gather information about one or more of the following environmental and social indicators, based on each tools’ capabilities and relevant concerns for the crop and its growing location:

  • Input optimization, including fertilizer
  • Farm productivity
  • Conservation or regenerative agriculture practice adoption, such as conservation tillage, cover cropping, crop rotation, integrated pest management, buffer strips, nutrient management, biodiversity measures, and climate risk mitigation strategies
  • Worker safety practices, such as use of personal protective equipment and health and safety training
  • Environmental outcomes, such as greenhouse gas emissions, water use, and water quality

As we shared in our 2020 Responsible Sourcing Milestones, we met our original, 2015 responsible sourcing commitment for priority ingredients, including corn, wheat, rice, potato, fruit and sugar beet ingredients, that we source with continuous improvement tools. With 2016 as our baseline year, suppliers delivering at least 80% of our annual volumes of these priority ingredients implemented one of our accepted survey tools for 3 or more years, with a goal of 5 years of completion. When appropriate, suppliers that joined our supply network after 2018 were onboarded to an appropriate continuous improvement tool for their crop and supply chain to ensure 80% or greater coverage of our annual ingredient volumes.

As a result of multiple years of partnership with our suppliers, survey tools documented encouraging examples of continuous improvement. For example, Kellogg Grower Survey data showed positive five-year trends for use of multiple farm management practices. Each year, from 2016 through 2020, at least 68 suppliers partnered with us to gather Kellogg Grower Survey responses from an average of 872 farmers per year, responding from 27 countries. Their responses showed improvement trends in farmers’ reported use of climate risk mitigation, adoption of 2 or more soil health practices, and adoption of biodiversity measures on farm.

After meeting our 2020 goals for continuous improvement, we continue to implement these survey tools with our ingredient suppliers to maintain transparency across our value chain and identify further opportunities for collaboration to support farmers’ climate, social and financial resiliency.

 

Our Progress

  • We met our original 2020 responsible sourcing goals for nine of our original priority ingredients, including corn, wheat, rice, potato, fruit, sugar beet, cocoa, palm oil, and vanilla ingredients.
  • In 2021, we continued to responsibly source our priority corn, wheat, rice, potato, fruit, and sugar beet ingredients using continuous improvement tools. We have also directly invested in Kellogg’s Origins programs within these ingredient categories.
  • For ingredients we responsibly source through direct investment or certification, we have either continued strategies in place in 2020 or begun a strategic review to build on and evolve our responsible sourcing programs for these ingredients.
  • As we continue to refine and evolve our methods for supporting continuous improvement in our priority ingredients, we are committed to maintaining our current progress to date.
  • Since 2015, we have partnered with more than 445,000 farmers and agronomists to promote farmers’ climate, social and financial resiliency, with measurement environmental and social outcomes.
  • This includes more than 37,000 smallholders, 15,000 women farmers and 2,500 agronomists trained.

 

Responsible Sourcing Approaches* 130 Ingredient Suppliers Engaged in 2021  Priority Ingredient 2021 Global Progress Toward Milestone Milestone Year Direct Investment through Kellogg's Origins Programs
Continuous improvement in environmental and social indicators Support continuous improvement in our priority corn ingredients by implementing the Kellogg Grower Survey or equivalent industry tool on at least 80% of our annual, global ingredient volumes Corn/Maize 100% 2030
Support continuous improvement in our priority rice ingredients by implementing the Kellogg Grower Survey or equivalent industry tool on at least 80% of our annual, global ingredient volumes Rice 100% 2030
Support continuous improvement in our priority wheat ingredients by implementing the Kellogg Grower Survey or equivalent industry tool on at least 80% of our annual, global ingredient volume Wheat 98.75% 2030
Support continuous improvement in our priority potato ingredients by implementing the Kellogg Grower Survey or equivalent industry tool on at least 80% of our annual, global ingredient volumes Potatoes 100% 2030
Support continuous improvement in raisins, sultanas, and freeze-dried strawberries by implementing the Kellogg Grower Survey on at least 80% of our annual, global ingredient volumes Fruits 100% 2030
Support continuous improvement in our priority sugar beet ingredients by implementing the Kellogg Grower Survey or equivalent industry tool on at least 80% of our annual, global ingredient volumes Sugar Beet 100% 2030
Direct investment or verification We are undergoing a strategic review to build on our current program to responsibly source chocolate and cocoa ingredients to advance toward our goal of 100% Responsibly Sourced by 2030.

 

We exceeded our 2020 goal to source ingredients through direct investments in our sourcing regions to improve livelihoods and support climate-smart agriculture practices for 16,000 smallholder farmers.
Cocoa In Progress 2030
We are undergoing a strategic review to build on our current program to source sugar cane to advance toward our goal of 100% Responsibly Sourced by 2030.

 

We continue our work to update our responsible sourcing strategy for sugar cane after reaching 84% of our 2020 goal.
Sugar Cane In Progress 2030
100% RSPO physically certified palm oil by the end of 2025 Palm Oil 83%
(EOY 2020
2025
Second generation priority ingredients Source 100% cage-free eggs ingredients, including liquid egg and other processed egg ingredients, in our major markets by the end of 2025. Please note that Kellogg Company does not source shell eggs. Eggs 0.5% 2025  
Source 100% of global soy ingredients from origins with low deforestation risk Soy 92% 2030  
Phase out the use of glyphosate as a preharvest desiccant in our wheat and oat supply chains in our major markets. We announced this approach in 2020 and will prioritize progress in our oat supply chains first, then in wheat. Oats 37.5% 2025  
Wheat 1% 2025  
Source US-grown almonds from programs developed in alignment with the California Almond Sustainability Program (CASP) Almonds In Progress 2030  
Responsibly source hazelnut ingredients with a focus on human rights Hazelnuts In Progress 2030  
Source 100% US Cheez-It cheese ingredients from suppliers using FARM Animal Welfare and FARM Environmental Stewardship Standards Cheese 100% 2030  

 

Our Impact

  • In late 2021, we completed our three-year Supporting US Farmers collaboration with The Nature Conservancy, which helped farmers in Michigan, Illinois, Nebraska and Arkansas secure funding and technical assistance to adopt conservation practices.  We were able to engage with more than 245 farmers, representing over 109,000 acres of wheat, rice and corn production that was positively impacted. More than 8 billion gallons of water were saved through the installation of 180 irrigation pump timers on Arkansas rice farms. As the timers continue to operate, this will lead to even higher water savings in the coming years. The farmers also reduced 2,800 tonnes of carbon dioxide through implementing regenerative agriculture practices, such as implementing cover crops and conservation tillage, the equivalent of removing 600 gas-powered vehicles from the road for one year1.
  • In Australia, the Cool Soil Initiative is helping wheat farmers implement cover crops and crop rotation to improve resiliency to climate change. Healthy soils can store carbon, and if the Initiative can restore just a 0.1% increase in soil carbon, the impact would be the equivalent of removing more than 1 million cars from the road.
  • Our Global Kellogg’s Origins™ interactive map and 2020 Responsible Sourcing Milestone report showcased details from programs past and present.

 

Approaches and Programs, By Priority Ingredient Category

  • Corn
    We will meet our responsible sourcing goals for corn ingredients through implementing continuous improvement tools at the farm level, using the Kellogg Grower Survey and equivalent industry tools like the Fieldprint® Platform. Key performance indicators include soil health, productivity and fertilizer efficiency. We also directly invest in programs that support farmers’ climate, social or financial resilience. Kellogg’s Origins programs active in 2021 included our renewed partnership with CIMMYT, Supporting U.S. Farmers in Illinois and Nebraska, and purchasing verified responsibly sourced corn with supplier Dacsa and farmers in Argentina. Details for current and past projects are available on our Global Kellogg’s Origins interactive map, our 2019 Responsible Sourcing Milestones, and our 2020 Responsible Sourcing Milestones.
     
  • Rice
    We will meet our responsible sourcing goals for wheat ingredients through implementing continuous improvement tools at the farm level, using the Kellogg Grower Survey, the Fieldprint® Platform, and the Cool Farm Tool. Key performance indicators include soil health, productivity and fertilizer efficiency. We also directly invest in programs that support farmers’ climate, social or financial resilience. Kellogg’s Origins programs active in 2021 included Kellogg’s Origins Spain, Supporting U.S. Farmers in Arkansas, and our medium-grain Thai rice program. In 2022, Kellogg Company also announced the Kellogg’s InGrained program, a $2 million, five-year program to reward US farmers' efforts to reduce greenhouse gas emissions. Details for current and past projects are available on our Global Kellogg’s Origins interactive map, our 2019 Responsible Sourcing Milestones, and our 2020 Responsible Sourcing Milestones.
     
  • Wheat
    We will meet our responsible sourcing goals for wheat ingredients through implementing continuous improvement tools at the farm level, using the Kellogg Grower Survey and equivalent industry tools like the Fieldprint® Platform. Key performance indicators include soil health, productivity and fertilizer efficiency. We also directly invest in programs that support farmers’ climate, social or financial resilience. Kellogg’s Origins programs active in 2021 included the Cool Soil Initiative, Supporting U.S. Farmers in Michigan, and Kellogg’s Origins U.K. Details for current and past projects are available on our Global Kellogg’s Origins interactive map, our 2019 Responsible Sourcing Milestones, and our 2020 Responsible Sourcing Milestones.
     
  • Potatoes
    We will meet our responsible sourcing goals for potato ingredients through implementing continuous improvement tools at the farm level, using the Kellogg Grower Survey and the Cool Farm Tool. Key performance indicators include soil health, productivity and fertilizer efficiency. We also directly invest in programs that support farmers’ climate, social or financial resilience. Kellogg’s Origins programs active in 2021 included a new partnership with supplier Clarebout, Soil Capital and potato farmers in France and Belgium to provide farm carbon assessments and generate carbon credits through adoption of relevant farming practices. Details for current and past projects are available on our Global Kellogg’s Origins interactive map, our 2019 Responsible Sourcing Milestones, and our 2020 Responsible Sourcing Milestones.
     
  • Fruits
    We will meet our responsible sourcing goals for raisins, sultanas and freeze-dried strawberries ingredients through implementing continuous improvement tools at the farm level, using the Kellogg Grower Survey and the Cool Farm Tool. Key performance indicators include soil health, productivity and fertilizer efficiency. We also directly invest in programs that support farmers’ climate, social or financial resilience. Kellogg’s Origins programs active in 2021 included Kellogg and our Turkish raisin and sultana suppliers continued participation Harvesting the Future, an initiative led by the Fair Labor Association (FLA) and supported by the Sustainable Agriculture Initiative Platform (SAI) and Sustainable Spices Initiative (SSI) to improve recruitment and employment practices among seasonal migrant agriculture workers in Turkey. Details for current and past projects are available on our Global Kellogg’s Origins interactive map, our 2020 Responsible Sourcing Milestones, and our 2020 Human Rights Sourcing Milestones.
     
  • Sugar Beets
    We will meet our responsible sourcing goals for beet sugar through implementing continuous improvement tools at the farm level, including the Fieldprint® Platform and the equivalent of SAI Silver or higher third-party assurance. One hundred percent of the beet sugar volumes we source from Europe were provided by suppliers that have partnered with farmers to meet this SAI Silver assurance equivalency. We also directly invest in programs that support farmers’ climate, social or financial resilience. Kellogg’s Origins programs active in 2021 included our partnership with supplier United Sugar (American Crystal Sugar), General Mills, and Barry Callebaut, which Kellogg joined in 2017 to partner with sugar beet farmers in the Red River Valley of Minnesota and North Dakota. Details for current and past projects are available on our Global Kellogg’s Origins interactive map, our 2019 Responsible Sourcing Milestones, and our 2020 Responsible Sourcing Milestones.
     
  • Cocoa
    We are undergoing a strategic review to build on our current program to responsibly source chocolate and cocoa ingredients to advance toward our goal of 100% Responsibly Sourced by 2030.

    We continue to partner with our suppliers and, in 2021, began work to define these processes, with a pilot scheduled for 2022. We exceeded our 2020 goal to source ingredients through direct investments in our sourcing regions to improve livelihoods and support climate-smart agriculture practices for 16,000 smallholder farmers.

    Kellogg’s Origins programs active in 2021 included partnering with TechnoServe to join support of farmers in the Maximizing Opportunities in Coffee and Cacao in the Americas (MOCCA) Project. Details for past direct investment projects are available on our Global Kellogg’s Origins interactive map, our 2020 Responsible Sourcing Milestones, and our 2020 Human Rights Milestones.
     
  • Sugar Cane
    We are undergoing a strategic review to build on our current program to responsibly source sugar cane to advance toward our goal of 100% Responsibly Sourced by 2030. We continue our work to update our responsible sourcing strategy for sugar cane after reaching 84% of our 2020 goals, which focused on a combination of traceability to mill and supply base; transparent mill operations with continuous improvement programs in place; and no worker, community or environmental grievances reported. In previous years, with the help of our partner, Proforest, we annually assessed our sugar cane supply operations to measure levels of third-party certification, environmental and social intervention programs and audit prevalence.

    We continue to partner with suppliers, and Kellogg’s Origins programs active in 2021 included our partnership with Proforest in Mexico to protect the health and safety of sugar cane cutters, who are particularly vulnerable to human rights risks in sugar cane supply chains. The program, among other objectives, provides free personal protective equipment to farmworkers and delivers trainings in health and safety practices aligned to compliance with four Bonsucro core criteria.  

    Details for past and current direct investment projects are available on in the Global Kellogg’s Origins interactive map, the 2019 Responsible Sourcing Milestones, and the 2020 Responsible Sourcing Milestones.
     
  • Palm Oil
    Since 2009, Kellogg has been on a journey to responsibly source palm oil. We have continued to evolve our strategies and actions to ensure that we are incorporating best practices and learnings from our own experiences, our suppliers, peer companies and industry organizations. In 2020, we updated our Global Palm Oil Policy and action plans to reflect key interventions that can drive impact at scale and support sector alignment and best practices. We also released our first standalone Global Policy on Deforestation. As of 2020, we have met our goal to responsibly source palm oil through a combination of certification and direct investment, including the purchase of segregated, mass balance, and RSPO credits to cover 100%of our palm purchases. In an effort to build upon that success, we have advanced our goal to source 100% RSPO physically certified palm material by the end of 2025. As of 2020, we have sourced 83% physically certified palm material.
     
  • Eggs
    We are working to achieve 100% cage-free egg sourcing in our largest global markets by the end of 2025. The overwhelming majority of Kellogg’s portfolio is plant-based and we use a small volume of egg ingredients in some of our foods. We focus our efforts on sourcing egg products from suppliers utilizing cage-free options that address animal welfare, food safety, worker and employee welfare, and the environment. Our largest markets represent more than 85% of the egg ingredients we buy globally, and that is less than 1% of our total ingredient and material spend. Kellogg Company purchases liquid egg, egg powder, and dried egg whites. We do not purchase whole shell eggs. We also do not purchase egg ingredients from Asia.

    One approach we have taken to forward our plant-based focus is to reduce our use of egg products across our portfolio. Since 2018, we’ve cut our global egg use by 33%. We accomplish this through product reformulation or removing products from the portfolio entirely. In calendar year 2021,.5% of global egg purchases were cage-free (.5% of egg products purchased in North America; 0% of egg products purchased in Europe and Latin America). This percentage has declined from 2020 as we have removed products containing cage-free eggs from our portfolio.

    Recent progress toward our cage-free goal has been impacted by headwinds including inflation and market fluctuations. Because we purchase egg products at a smaller scale than some other companies, we continue to work with our suppliers to find economical ways to procure cage-free products at sustainable costs by the end of 2025.
     
  • Soy
    Starting in 2021, Kellogg added soy to its priority ingredients for responsible sourcing. In 2017, Kellogg first signaled support for responsibly sourced soy by supporting the Amazon Soy Moratorium, joining the Cerrado Manifesto Statement of Support (SoS). Since then, soy has become a more important part of our business, from the growth of our MorningStar Farms® brand in the United States, to our 2017 acquisition of Parati® in Brazil. In 2021, 92% of Kellogg soy ingredients were sourced from markets with low deforestation risk, such as the United States. However, for the remaining 8% of soy ingredients that were sourced from Brazil in 2020, deforestation and conversion of natural habitat are material risks in our supply chain. Our responsible sourcing strategies must address these risks.

    By adding soy to our priority ingredients, we formalize our commitment to implement risk- and context-based responsible sourcing programs for our soy ingredients by 2030. We have introduced expectations for soy ingredients into our Global Policy on Deforestation, released in 2020. Moving forward, we will focus these strategies on Brazil, where there is demonstrated risk of deforestation and land conversion. We will also explore opportunities to expand our Kellogg’s Origins program to soy producers in the United States, where we source the majority of our soy ingredients.
     
  • Oats
    In January 2020, we set a goal to phase out the use of glyphosate as a preharvest desiccant in our wheat and oat supply chains in our major markets by the end of 2025. Our teams have developed work plans to reach this goal for key ingredients - including whole grains, cracked and rolled grains, brans and flours - made from wheat and oats grown in the U.S., Canada, Mexico, France, the U.K. and Australia. We will prioritize progress in our oat supply chains first, then in wheat. We will continue to partner with our suppliers to reach our 2025 goal and share our annual progress for each of these ingredient categories.
     
  • Almonds
    Soil and water stewardship, enhanced biodiversity and pollinator health, and climate resilience are material issues in our almond ingredient supply chains. In our 2020 Responsible Sourcing Milestones, we shared a preview from our U.S. almond supplier of their forthcoming sustainability program.

    Blue Diamond Growers and its approximately 3,000 member-growers have a multi-generational history of sustainable almond growing. To further demonstrate that commitment, in 2020, Blue Diamond introduced an innovative Sustainability Incentive Program. The first-in-industry incentive of this scale, the plan rewards member-growers who document their practices and encourages progressively higher levels of commitment toward adopting additional sustainable measures in their almond orchards. This will enable Blue Diamond to share the cooperative’s unique sustainability story more holistically.

    The incentive program utilizes the internationally recognized Almond Board of California’s California Almond Sustainability Program (CASP) which has been benchmarked by SAI Platform’s Farm Sustainability Assessment at Gold equivalent. Other aspects of the program include recognition for obtaining Pollinator Partnership’s Bee Friendly Farming certification and assessing on-farm greenhouse gas emissions and soil carbon sequestration.
     
  • Hazelnuts
    Kellogg sources some ingredients that contain hazelnuts grown in Turkey. Due to material social issues in this region, including farmer and worker rights and fair recruitment, we have added ingredients made with Turkish hazelnuts to our responsible sourcing priorities. We have begun work with our supplier to confirm the traceability of hazelnuts in our ingredients, as well as activities underway to protect farmer and worker rights, combat forced and child labor and ensure a safe and healthy workplace for all.

    We will pursue these next steps in accordance with our evolved our Human Rights Strategy and updated Human Rights Policy, which we released in 2020. We have long been committed to protecting, respecting and advancing the cause of human rights across our value chain. We undertook these policy updates to reflect an even more active approach toward engaging our suppliers to drive the biggest impact across our business, including our ingredient supply chains.
     
  • Cheese
    Cheese ingredients used in the Cheez-It® brand are sourced in North America. Animal welfare and stewardship of greenhouse gas emissions in dairy production are both material issues in our cheese ingredient supply chains. To address these issues, all suppliers for these ingredients will continue to implement the National Dairy FARM Program, including the Animal Care standard and Environmental Stewardship (ES) module, with dairy producers in their supply networks. Through implementation of FARM ES, which provides a comprehensive estimate of greenhouse gas emissions and energy use on dairy farms and provides tools and resources for farmers to measure and improve their footprint, our suppliers have begun sharing with Kellogg annual greenhouse gas estimates to track our cheese ingredients’ farm-level emissions over time. These actions reflect our commitment to animal welfare, as well as contribute to our efforts to meet our 2030 and 2050 targets scope 3 greenhouse emissions reduction.
     
  • Vanilla (retired in 2021)
    In 2021, we met 100% of responsible sourcing goals for natural vanilla with the conclusion of our three-year partnership with our supplier, Symrise, in Madagascar. Though our vanilla sourcing volumes have decreased since 2015, when we first named vanilla a priority ingredient for our responsible sourcing goals, we are proud to continue this partnership and support people and the planet in a critical vanilla production region. Environmental and social innovations and results from this program are detailed in our 2019 Responsible Sourcing Milestones, 2020 Responsible Sourcing Milestones, and 2020 Human Rights Milestones. Due both to the successes of this program and a significant decrease in materiality to Kellogg’s ingredient sourcing, we have retired vanilla from our priority ingredients for responsible sourcing.

 

[1] https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator