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 in final product divided by total water withdrawals and is measured as “Liters per Liters” or L/L) | 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 | 2014 | 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 Tecamac, Tehuacan and Tlajomulco, Mexico Water replenishment project water volumes are calculated on a yearly basis (ML/yr), based on the annual volume benefit they deliver. | None | In previous years, 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 is now 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 and brewer accessories | Third-party bottlers’ packaging material Plastic strapping, adhesives, tapes, wood pallets, brewers and brewer components | 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 and brewer accessories | Third-party bottlers’ packaging material Plastic strapping, adhesives, tapes, wood pallets, brewers and brewer component | 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 and brewer accessories | Third-party bottlers’ packaging material Plastic strapping, adhesives, tapes, brewers and brewer components | 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 | N/A | 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 and brewer accessories | Third-party bottlers’ packaging material Plastic strapping, adhesives, tapes, brewers and brewer component | 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 | None |
| Responsibly source our brewers and 100% of our 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 green coffee extract; green coffee or other coffee inputs purchased by partners | Accepted third-party certification or verification programs: Fairtrade International, Fair Trade USA, the Rainforest Alliance/UTZ, 4C, AtSource Entry Verified by ofi and Great Lakes Coffee MaxTRACE. KDP’s evaluation tool to accept partner programs was independently reviewed by Conservation International and WWF. |
| Responsibly source our brewers and 100% of our priority inputs | % 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 third-party certification or verification programs: Purchased volumes validated by the Rainforest Alliance/UTZ, Fair Trade USA and Fairtrade International. KDP’s evaluation tool to accept partner programs was independently reviewed by Conservation International and WWF. |
| Responsibly source our brewers and 100% of our priority inputs | of brewer suppliers that Meet or Exceed 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. Scope for 2022 has expanded to include all KDP-managed Tier 2 suppliers. The number of Tier 2 suppliers in scope prior to this expansion was 23. The number of new suppliers integrated in 2022 was 33, resulting in a total of 56 KDP-managed Tier 2 suppliers in scope for the Responsible Sourcing Program. |
| Support regenerative agriculture and conservation on 250,000 acres of land by 2030 | Number of acres | N/A | 2021 | 2030 | Coffee, corn (for high fructose corn syrup), apple supply chains | Coffee: soluble and 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. For more information, refer to KDP’s Regenerative Agriculture & Conservation Measurement and Evaluation Guide. |
| Provide positive hydration in 60% of our products by 2025 | % of total number of KDP products | N/A | 2021 | 2025 | Positive hydration is defined as a product that provides a serving of fruits/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 Partnership for a Healthier America. |
| Increase female representation in Director and above positions by 25% to 33% of the total by 2025 | % of Director-level and above employees | 2020 | 2021 | 2025 | Director-level and above employees in all geographies | All employees below Director | None |
| Increase people of color representation in Director and above positions by 25% to 21% of the total by 2025 | % of Director-level and above employees | 2020 | 2021 | 2025 | Director-level and above employees in the U.S. only | All employees below Director | None |
Glossary
| TERM | DEFINITION |
| Circular Economy and Circularity | Terms used to describe the efforts made by KDP and peers to design products, packaging and processes for durability, reuse, recycling and/or composting while supporting 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 petro-chemical inputs and is subject to third-party certification. |
| Conservation | The act of bringing non-agricultural land into conservation protection or supporting an increase in protections and/or stewardship on already conserved lands. |
| 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 (EPR) | A policy approach that assigns producers responsibility for the end-of-life of product. This can include both financial responsibility and operational responsibility. |
| 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). |
| GHG Emissions – Scope 1, 2 and 3 | 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). |
| GHG Emissions – Scope 1, 2 and 3 | 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.). |
| K-Cycle Program | Working with recycling partners, this service offered to KDP’s workplace customers collects high-volume bins of brewed K-Cup pods and recycles the pod plastic, filter paper and aluminum lid. The coffee or tea is diverted to compost. |
| Net Positive Water Impact | An approach developed by the Water Resilience Coalition to exceed the positive impact to water-stressed basins across quantity, quality and access. |
| Positive Hydration | A KDP product that provides a serving of fruits or vegetables OR is 40 calories or less per serving with a functional attribute or at least 10% Daily Value of a nutrient to encourage. |
| Priority Inputs | Materials of importance to KDP’s business, including coffee, cocoa, corn, apple and apple juice concentrate, as well as 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. |
| Regenerative Agriculture | 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. |
| Responsible Sourcing | Our approach to help safeguard fundamental human rights and environmental protections across our supply chain. For coffee and cocoa, we rely on third-party certification and verification 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 dictates volume and price. |
| KDP-managed Brewer Suppliers | Tier 1 brewer suppliers: Contract manufacturers that assemble our brewers. |
| KDP-managed Brewer Suppliers | 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” |