ESG and Kellogg's
Updated: Oct 7, 2022
Kellogg’s is an international food company that is known for selling cereals and snack foods. They are most well known for their products such as Pringles, Cheez Its, Frosted Flakes, and Eggo Waffles. In 2021, the company posted net sales of 14.2 billion, and boasts a market cap of 23.6 billion as of June 21, 2022.
Kellogg’s has recently become extremely invested in ESG initiatives, as demonstrated by their new “Better Days” Promise. In their promise, they hope to “advance sustainable and equitable access to food by addressing the intersection of wellbeing, hunger, sustainability and equity, diversity and inclusion.” Some of their goals include feeding 375 million people in need, providing support for 1 million farmers and workers, ensuring equity, diversity and inclusion in their own workforce, and engaging 1.5 billion people in advocating for sustainable and equitable access to food.
Although their goals are ambitious, Kellogg’s has recently donated $100,000 as part of their ESG strategy that has set them well on their way to accomplishing their ESG goals. $50,000 went to their long-time partner, No Kid Hungry, who will use that money to provide 500,000 meals through help support programs that distribute meals to kids. Another $25,000 will be donated to Albertsons Companies Foundation’s Nourishing Neighbors, and the remaining $25,000 will be donated to new Albertsons Cos. Foundation’s new E.A.T. program supporting food security among children.
Additionally, in response to the production of rice accounting for an estimated 12% of global methane emissions, Kellogg’s has released a program called Kellogg's Ingrained, a $2 million, five year program devoted to rice farmers with the goal of reducing greenhouse gas emissions by 15% by 2030.
The program involves providing training opportunities in climate-positive practices such as irrigation management, nutrient management and soil health to support farmers’ transition to being more sustainable, as well as rewarding farmers $20 for every 1 ton of greenhouse gas reduction. Partners of the Kellogg’s Ingrained program estimate a reduction of up to 51,000 tons of GHGs from the North American rice ingredient supply chain over the next five years.
As a company that has adapted to the rise in demand for sustainability and the growth of ESG, Kellogg’s has set the standard in establishing environmental goals for the future and launching ESG initiatives that have a real positive impact on the world.