kellogg's environmental impact
The collaboration will initially focus on Nebraska, where Kellogg's sources grain for products such as its trademarked Corn Flakes and Raisin Bran cereal. By 2020, the firm . 5 April. Great article! Much of the rhetoric in Kelloggs public communications around climate center on the critical social impacts, such as food security and homelessness. If you fit this description, you can use our free essay samples to generate ideas, get inspired and figure out a title or outline for your paper. Obviously, we think this is a great move., Though Holdorf said she appreciates the input that Kellogg gets from groups such as Oxfam, she added that the company has been working on such commitments for a while.. Kelloggs tries to acquit itself of all responsibility in this affair, but financially supporting Wilmar to commit this environmental violation, makes Kelloggs a complicit as well. The internal environment in Kellogg's consists of the information systems, organizational structure, the management styles, the various brands and how their life cycles are managed and the behavior of the individuals. Recession started in 2008; unemployment is high in record in Canada now.People haveno more money to buy expensive . To that end, Kashner described a progression where the business world has seen the concerns progress over the years from seemingly fringe matters to critical, strategic tasks. The company has collaborated with more than 440,000 farmers in 29 countries through the Kellogg's Origins program, a global initiative to promote climate, social and financial . The Kellogg Company, known widely as Kellogg's, is an American multinational food manufacturing company headquartered in Michigan, the USA. GWP is 2.6 kg CO 2 eq., primary energy 32.3 MJ and water footprint 283 l eq./kg. This would seem to be quite a substantial impact given they have over 50 manufacturing plants worldwide. Unilever estimates it loses $415 million a year due to extreme weather events. We also eliminated single-use plastic spoons that were part of certain packages. Harv Bus Rev. Unilever estimates it loses $415 million a year due to extreme weather events. In order to achieve that, Kelloggs is bound to high ethical standards and sustainable business approaches, which are based on its circular business model. Dawitt, thanks for shedding some positive light on the maker of some of my favorite childhood cereals and snacks. The South Pacific nation is home . By investing in such technologies, Kellogg can go a long way in dealing with climatic change and ensuring food security in the long term. Kashner summed it up well: We have set a high bar for the depth of insight, content and networking at this event for years to come., Learn more about majors and pathways at Kellogg, including dedicated pathways for Energy & Sustainability and Social Impact >, Find out what we look for in a candidate, tips on when to apply and more +, Northwestern faculty and students participated in COP26, Institute for Sustainability and Energy at Northwestern. These requirements are anchored in the Global Code of Ethics, where it says that a truly sustainable business is one, that focuses on minimizing any negative impact to guarantee future generations to prosper. In Memphis, a fire has taken a cereal plant completely offline . Advancing Sustainable Agriculture. You can get your custom paper by one of our expert writers. Individuals are dependent on food but are nevertheless putting increasingly more attention to what they eat. One area I am unsure about is how Kellogg should prepare to respond to extreme weather events as they occur. A repeated refrain during the conference echoed what many of the worlds corporate leaders now believe: Sustainability is good for the planet and good for business. In the Kellogg's PESTLE Analysis, the environmental elements affecting its business are as below: Since it is a food manufacturing industry it has its own norms to protect the environment. Established in 1906 in the United States of America, the worlds leading breakfast cereal manufacturer, Kellogg Company, supplies its products, such as Kelloggs Special K, Corn Flakes, Froot Loops, Frosted Flakes and Rice Krispies to customers in 180 countries with production facilities in 18 regions. Kellogg India is piloting an innovative project with waste management company Nepra Environmental Solutions in Pune, Maharashtra. Locations, Financial To initiate the long march to 2050, Kellogg has set specific objectives to tackle over the near-term, focusing on reducing natural resource consumption in its manufacturing processes and sourcing responsibly upstream. [7] Kellogg, Climate Policy, http://www.kelloggcompany.com/content/dam/kelloggcompanyus/corporate_responsibility/pdf/2016/Kellogg%20Company%20Climate%20Policy3-9-16.pdf, accessed November 2017. Kelloggs promotes its products with the clear vision To enrich and delight the world through foods and brands that matter and shows commitment to philanthropic practices through their Global Code of Ethics and their corporate social responsibility strategy, giving the company a long-term and sustainable approach. Kellogg's recently received an award from the National Association for the Advancement of Colored People for diversity in . [6] Oxfam International, Winston Eco-Strategies, Global Sustainability Commitments, http://www.kelloggcompany.com/content/dam/kelloggcompanyus/corporate_responsibility/2017/Kellogg_Global_Sustainability_Commitments_Feb_2017.pdf, accessed November 2017. We know that earths climate is changing, and in the absence of decisive action, we will have catastrophic consequences.. Submitted by- Angelina Naorem ETHICAL ANALYSIS OF KELLOGG'S. 2. Climate change also represents a multi-trillion-dollar business opportunity for forward-thinking business leaders, with massive new markets in technology and infrastructure solutions expanding throughout the world. The methodologies widely used in industry to estimate emissions are often quite simplistic, failing to take into consideration idiosyncratic factors that affect environmental impact. The Kellogg Company, doing business as Kellogg's, is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States.Kellogg's produces cereal and convenience foods, including crackers and toaster pastries, and markets their products by several well-known brands including Corn Flakes, Rice Krispies, Frosted Flakes, Pringles, Eggo, and Cheez-It. Therefore, it is fundamental for companies to the environmental impacts of its entire supply chains and, hence redefine strategies to minimize those effects caused by the manufacturing of its products. Indeed, climate change represents one of the 21st centurys most important drivers of both value creation and destruction in the global economy. This implies the premise to be picky when it comes to its supplier selection and actually bounding them to transparency and the strict sustainability guidelines according to its Global Supplier Code of Conduct to avoid unethical practices. The company also uses solar energy and biomass boilers at some other plants. The layoffs began to result in wildcat strikes and sales drop accordingly, indicating Kelloggs social risks in its international supply chain. While Kellogg is making progress in reducing its own carbon footprint, isolated action is not enough to make a scaled impact. Through efforts large and small, Kellogg is working to reduce its energy use and greenhouse gas emissions worldwide. The renewed push includes seeking better results, from the company and suppliers, and it comes as consumers and public advocacy groups demand that companies such as Kellogg take more responsibility for their environmental effect. Kellogg work for the environment. [2] Gothberg, John. Since 2015, Kellogg has reduced scope 1 & 2 GHG emissions in its manufacturing plants by more than 28%, and exceeded one year ahead of schedule its goal to reduce GHG emissions by 15% per pound of . This approach intends to provide an "improved version" of the European Commission's (EC) Product Environmental Footprint (PEF) which the Foundation says has not been able to offer a comparison . In Africa, India, China and Australia, weve significantly reduced packaging using this approach. Very often, extreme weather events are localized (hail, frost, floods) and individual farmers are impacted into very different ways. In four short years, climate change has taken on ever-increasing gravity. Interesting topic. We also currently have some instances where we bulk ship cereal in reusable bins from the production facility to the final destination, where it is packed into pouches or bag-in-box packages. to see the extent to which Kellogg have developed a strategy to address the environmental impact of their operations and they appear to be implementing this in their manufacturing sites. The third-ever ClimateCAP Summit, held Feb. 25 and 26 at the Kellogg Global Hub, drew more than 250 MBA students from 23 business schools across the U.S. to Evanston in the name of addressing the nexus of sustainability and business, and evaluating the challenges that face an imperiled planet from a business school perspective. This pervasive message and conference theme was amplified by Fletcher during the panel discussion he participated in, Climate as Strategy, on day two. 2016. Kellogg used recycled materials to package his first box of cereal. The Company intends to fully allocate proceeds within 36 months. Driving Sustainable Results in Energy Reduction. Let's fix your grades together! Kellogg and J.H. For Kelloggs, these are attributed to as the K-Values, including integrity, accountability, passion, humility, simplicity, and their focus on success. Kellogg stock's rise since late 2018 came due to a 2% rise in revenues from $13.5 billion in FY 2018 to $13.8 billion in FY 2020. Though Kellogg's represents itself as a healthier alternative especially for breakfast, high sugar content and syrups in its meals are the key weakness of the company that has negatively influenced consumers. 2023 gradesfixer.com. This essay has been submitted by a student. "This is a great opportunity for new students at Kellogg to . Today, 76% of our packaging is recyclable. The issues and challenges inherent to climate change have moved into the board room, into the investment committee, and into the norms and expectations for corporate and market strategy, Kashner said. Interestingly enough, Ikea was able to make investments that were beneficial to the environment and came with a positive ROI. Environmental issues & Sustainability. As a global food company that makes many grain-based products, we really are heavily dependent on natural resources like water, energy and healthy agricultural ecosystems to make our food, said Diane Holdorf, Kelloggs chief sustainability officer and vice president of environmental stewardship, health and safety. Two weeks ago (June 25, 2010), Kellogg's recalled 28 million boxes of Corn Pops, Honey Smacks, Froot Loops and Apple Jacks after customers complained of what the cereal maker called an "off-taste and smell" that caused "nausea . The impact of these trends is already significant to food and beverage companies today. https://www.theguardian.com/global-development/2015/mar/17/farming-absorbs-22-per-cent-cost-disasters-developing-countries-un-report. Your time is important. And so, the ClimateCAP conference, which traces its roots to a 2018 gathering at Duke University, emerged from its 2022 gathering with an even sharper trajectory. My worry is that their efforts, while powerful on given their scale, may ultimately not be enough by themselves. "Kellogg provides compensation and benefits for our U.S. [ready-to-eat cereal] employees that are among the industry's best." Dan Osborn, a plant mechanic and president of the local in Omaha, Nebraska, said legacy employees do make good money, and he doesn't doubt many earn $120,000 or more. We can write you a custom essay that will follow your exact instructions and meet the deadlines. Kellogg's dedication to sustainability is rooted in supporting farmers and biodiversity while addressing issues of climate and packaging. With the aim of increasing its overall efficiency, Kelloggs introduced its efficiency and effectiveness initiative Project K whilst working on building a future global supply chain through responsible investments in emerging markets, such as India or Thailand. By 2030, global climate change impacts are projected to reach $700 billion annually, with trillions of dollars of coastal, urban and agricultural assets at risk, according to the presenters. Around the world, were committed to following the principles of the circular economy, excluding, reducing and replacing plastic, as well as building external partnerships to ensure more plastic can be recycled after use. Kellogg has taken on a leadership role along with other leading food and beverage companies, raising public awareness through media and collaborating with governments and NGOs to guide public policy. Try to reduce the greenhouse gas emission (www.kelloggs.com, 2019)DZ. Kelloggs strategy is to emphasize both, a philanthropic approach as well as strategic sustainability and embed them in its overall company strategy. The unit that houses its snacks . In 2015, Kellogg announced GHG reduction goals across its entire value chain. The power of having people in the room, and bringing people together, made a difference, Matthys said. Technically, Productivity is about how well people combine resources to produce [], In the article, Robin Chase, Zipcar, and an Inconvenient Discovery, Deborah Ancona and Cate Reavis give the account of the formation of Zipcar, a car-sharing company based in Cambridge, Massachusetts and Boston. Does Kellogg take this to the point of exiting product categories where the product itself is arguably not environmentally sustainable in any large scale agricultural growing arrangement? [4] World Bank, World Bank National Accounts Data, https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS, accessed November 2017. I wonder how long companies such as Kellogg can sustain their investments if more widespread political change does not occur. The vision of Kellogg's is to enrich and delight the world through foods and brands that matter. Deforestation-free in our primary meat, palm oil, pulp and paper, soy and sugar supply chains. We also use composite cans, and for our bars and convenience foods, we use flexible plastic packaging. We will occasionally send you account related emails. Ingredients and energy used in the manufacturing stage and for packaging are the dominant hot spots, contributing to primary energy demand and to more than 90 percent of the water footprint. It behooves the business sector to take this mantle because the government can only do so much. I agree that Kellogg is moving in the right direction through its initiatives to reduce its GHG emissions, carbon footprint, and environmental impact, but it is challenging to hold the company accountable on its progress. And will that be a good thing?, Grist, February 3, 2016, http://grist.org/food/will-climate-change-move-agriculture-indoors-and-will-that-be-a-good-thing/, accessed November 2016. GradesFixer. It is surprising that politicians claim to represent corporate interests by trying to prevent increases in their costs but many corporations themselves are willing to invest in initiatives to protect the environment and their own businesses in the long run. In a report published in 2016, OSIsoft claimed they saved a Kellogg manufacturing plant $3.3 million annually from reduction in energy costs [2]. Farmers, specially small ones, are very dependent on yields from one harvest to be able to fund next years one and disruptions caused by such events can severely compromise their ability to sustain the business. We are aggressively driving cutting-edge innovation, looking at how packaging can protect and enhance our foods and have an even smaller environmental impact. Plastic food packaging adds to this issue; however, it also plays an important role in food quality, safety and reducing food waste. By encouraging such policies, Kelloggs achieved to reduce the number of its occupational accidents and, hence, the time lost due to such injuries. Together, were developing a system to collect and dispose of multilayer plastic (MLP) waste. 2) Running test drills: To ensure that your contingency plans are adequate, running fire drills can help expose weaknesses in your plans in order to help you better prepare for the real emergency. Kellogg: 100% sustainable packaging by 2025 Our commitment Making our packaging recyclable, reusable or compostable According to the Ellen MacArthur Foundation, 311 million tonnes of plastic is produced each year, the equivalent of more than 900 Empire State Buildings1. Kelloggs is the worlds leading manufacturer of breakfast cereals. Where Kellogg should modify its leadership strategy is by refocusing the discourse around the business case for climate smart practices in order to shift norms in the private sector. And finally, considering the premise of pleasing shareholders, but not at the expense of its stakeholders to avoid social risks along the supply chain; a workplace ambition, supporting a talented and diverse workforce which emphasizes diversity and inclusion, and ensuring a safe work environment whilst abiding by best practice labor standards. Fletcher added that while government can set boundaries, businesses and their key decision makers have the greater power to truly move the planet away from its alarming trajectory. Kelloggs vision to enrich and delight the world through foods and brands that matter is supported by its humanitarian purpose of Nourishing families so that they can flourish and thrive. Annually, 8 million metric tonnes of this plastic enter our oceans. Impact statement on Economics: Unemployment nationally 10%. Ideally, these efforts would be combined with broader policy actions from the government through focused lobbying efforts to improve the industries in a more rapid manner. Environmental Scanning & Industry Analysis: The Kellogg's company does a good job of scanning the environment. Annually, 8 million metric tonnes of this plastic enter our oceans. Even the Ministry of Health suggested to the public to not consume specific Kelloggs cereal products for making unsubstantiated promises on the nutritional value of its products and its unethical partnerships with suppliers. Kellogg's digital marketing team has recently been on overdrive to succeed. That is how Kelloggs ensures that none of the involved parties along its entire supply chain will be missed out and guarantees that each Kelloggs employee around the world is working towards these principles. Kellogg also will begin pushing suppliers, millers and farmers to reduce their greenhouse gas emissions. 2. At Social Impact Days, students form teams to rapidly design an innovative approach to a real social or environmental challenge and pitch their ideas in a mini-competition. Accessibility statement Skip to main . The Companys founder W. K. Kellogg once said: Character will never be produced by money. Food company Kellogg has particularly been focused on how storms, floods, drought, and shifting weather patterns lead to reduced crop yields or crop failures that reduce access to and raise prices for key agricultural inputs. We also recently decreased the size of cereal boxes, while maintaining the same amount of food in each box. As Kellogg is now forced to meet Europes Food Information Regulation EU-1169, it requires consistent information for consumers on product ingredients, nutritional value, and allergens. But in quintessential Kellogg fashion, the spirit of rising to the occasion, breaking barriers and leading where others follow spread to a much wider audience. 2.3 million m3. The company also uses solar energy and biomass boilers at some other plants. Specifically, as a supplier to Kellogg, we found there was limited engagement on sustainability, but more of a price focus. Phone: (269) 961-2800, (269) I found this blog post (link below) to be particularly insightful, laying out 3 concrete actions organizations could take to prepare: Kellogg's Treasury department will be responsible for monitoring and allocation of proceeds to Eligible Projects. BATTLE CREEK, Mich., June 1, 2021 /PRNewswire/ -- Kellogg Company today announced it has achieved significant progress in its global efforts to support farmers, protect and restore ecosystems and combat climate change. As he invited the MBA hopefuls in attendance to get involved, Weber offered this forward-looking perspective: How old will you be in 2050 and where will you find yourself? Kellog competitor General Mills has reported that extreme weather cost the company 3-4% of its annual production in a given year. I also would agree with your point about Kellogg protecting itself from cost inflation and operational cost overruns, but I wonder what those savings realistically look like? Gowdy J, Winston A. By 2016, Kellogg wants to have 30 percent of its plants sending zero waste to landfills, up from 18 percent now. This outcry was followed by subsequent product recalls and affected the Companys brand image negatively. This is clearly not just something we like to teach, but something that is an opportunity for you, he told the attendees. With the summit bringing those vocational and entrepreneurial dynamics into focus, ClimateCAP marked a watershed moment for Kellogg, MBA students, faculty and participating alumni. The change has to happen in the private sector we cant just depend on the government to do this work, Fletcher stressed. . But we also have to think about the long term.. The cereal and snacks giant revealed this week the new names of its two businesses once it completes a planned breakup later this year: Kellanova and WK Kellogg Co. "It was a daunting task when . Reading about Kelloggs efforts to reduce their carbon footprint reminds me of the Ikea case. MBA students, as tomorrows business leaders, have a powerful role to play in combating climate change at the corporate level, in unison with forwarding an environmental agenda. It would be difficult to attribute this to any particular eco-friendly business practice, but I did find that Kellogg has been working with OSIsoft on several of these energy efficiency initiatives. Chalk that up in part to the drive to make this ClimateCAP, even while dealing with the pandemics formidable hurdles, a live event (and of course, a safe one). In doing so, well create better days for 3 billion people by the end of 2030 by: We envision a day where people are fed and fulfilled, our planet thrives, and there is a place at the table Kellogg has picked a name for its new spinoff companies. This essay was donated by a student and is likely to have been used and submitted before, Free samples may contain mistakes and not unique parts. Annual Shareholder Meeting Two prominent Kellogg faculty served as co-hosts for ClimateCAP: Megan Kashner, clinical assistant professor and director of social impact, and leader of the global impact and sustainable finance faculty consortium; and Klaus Weber, professor of management and organizations, and deputy director of the Northwestern Buffett Institute for Global Affairs. The renewed environmental and social commitments come as Kellogg is also trying to get people to eat more of its. Foundational to driving growth for our business is our responsible Environmental, Sustainability and Governance (ESG) strategy - our Kellogg's Better Days Promise to advance sustainable and equitable access to food by addressing the intersection of wellbeing, hunger, sustainability, and equity, diversity and inclusion. Kellogg could actually drive more impact by more explicitly highlighting that it makes sense to be climate smart just to insulate itself from cost inflation and operational cost overruns. In a nod to the Kellogg team that made it all possible, the speakers and the MBA students who attended, Weber said: Everyone sat eye-to-eye and it was a great collaborative effort for something that we know we all have to do together., Indeed, the challenges posed by climate change arent going away anytime soon. For example, its Eggo bakery in San Jose, Calif., installed fuel cell technology in 2013 that generates about half the electricity the facility needs. Were incredibly motivated to be part of the solution, said Nigel Hughes, DPhil., senior vice president, research quality, nutrition and technology. Kellogg College is taking action against global warming and climate change, as well as facilitating behavioural change among staff, students, fellows and members of the College. Theres never been a better time, and if we dont act now, we will not have the luxury of asking when.. Kelloggs strategy and long-term business goals focus on interacting with its stakeholders to ensure to meet their needs. This is what we pushed the company to do, said Irit Tamir, special adviser in Oxfam Americas private sector department. Ill invest my money in people which describes what makes the Kellogg Company stand out: its focus on all of its stakeholders. Kellogg students can take classes there so theyre more equipped with the technical prowess to understand how to combat climate change. Kellogg Company (also known as Kellogg's) is a multinational food manufacturing company headquartered in Battle Creek, Michigan. On the supplier management side, Kellogg has pledged by 2020 to enable 500,000 farmers to implement climate smart agricultural practices, engage 75% of tier 1 suppliers to publicly disclose progress on emissions reductions and for its 10 priority ingredients, to achieve full sourcing from only environmentally responsible suppliers. Cornelli encouraged the MBA students in attendance to think of themselves as the uniquely qualified agents of positive change for the planetand to see and seize those business opportunities. [2] Oxfam International, Standing on the Sidelines, https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/bp186-standing-sidelines-big10-climate-emissions-200514-summ-en_0.pdf, accessed November 2017. The company has indicated publicly that it is undergoing a detailed road-mapping process both internally and with suppliers, iterating based on the results of its 2020 initiatives. Importantly, Kellogg and its peers, such as General Mills, have taken the additional step of welcoming public scrutiny and engaging with non-governmental organizations, leveraging work from CDP, the World Resources Institute, and others [1,2]. As Kelloggs shows, corporate sustainability requires active engagement throughout both the internal and external supply chain. That made Kellogg a natural host location and a catalyst that brought together diverse constituencies. This success story can be credited to its value-based culture and its commitment to practices based on particular business values, which are going to be analyzed in the subsequent section. If the question is how, then much of this stands as uncharted territory. (Source - Statista) The sweet & savory snacks market, on the other hand, is expected to grow at a CAGR of 6.1%, which . If solutions to advance change on a worldwide level remain works in progress, Kellogg students are learning the skills to problem solve and lead businesses. Impact: In the early days of the partnership, they . Toll Free: (877) 910-5385 As already stated in its CSR report, Kelloggs is committed to reducing its GHG emissions, the amount of waste, and its energy consumption, while constantly analyzing how it impacts its triple bottom line. By passing best practices to suppliers and setting ongoing, achievable, near-term targets, the company can further push the frontier of environmental impact in its industry [1]. LED lights can lengthen the hours of sunlight so plants can grow faster. Your California Privacy Rights/Privacy Policy. Calculators, Annual The amount of sugar in Kelloggs Honey Smacks accounts for considerable 56 percent. Rising costs saw net margins drop from 9.9% to 9.1% over . As an added benefit, the bags help fight freezer burn, which reduces food waste. They produce their raw materials. Kellogg in Battle Creek, Michigan, and is most famous for its ready-to-eat cereals (Pierre & Fischetto, 2020). Technology. Foundational to driving growth for our business is our responsible Environmental, Sustainability and Kelloggs portfolio of suppliers is likely to provide a great level of protection to those events, and as Mrs. Marissa highlighted: if your main supplier gets hit with a hurricane, you will want to have a secondary supplier in place. Occasionally it has attracted government agencies to scan their product's nutritive value. Kellogg Company (commonly known as Kellogg's) is an American producer of food products. During the pilot year of the program, InGrained helped farmers implement climate-smart irrigation practices that achieved a reduction of more . This relates to water usage, and not climate change resulting from greenhouse gas emissions, but it falls within the broader umbrella of environmental sustainability. Kellogg was one of the 360 companies that issued a sharp rebuke to the U.S. withdrawal of the Paris climate accords. While micro environment factors such as competition norms impact the competitive advantage of the firm. Our mission is Were in business to save our home planet. And we have to do that now. For you, he told the attendees an innovative project with waste management company Nepra environmental Solutions in Pune Maharashtra! Wants to have 30 percent of its annual production in a given.. System to collect and dispose of multilayer plastic ( MLP ) waste as competition impact., which reduces food waste impact the competitive advantage of the Ikea case both, a fire has taken cereal... To be quite a substantial impact given they have over 50 manufacturing plants worldwide the! 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By- Angelina Naorem ETHICAL ANALYSIS of Kellogg & # x27 ; s is to enrich and delight the World foods! Throughout both the internal and external supply chain events are localized ( hail, frost, ). Is working to reduce its energy use and greenhouse gas emissions change has taken a cereal plant offline. Were developing a system to collect and dispose of multilayer plastic ( MLP ) waste amp Industry... Metric tonnes of this stands as uncharted territory more attention to what they eat weve significantly packaging... Multilayer plastic ( MLP ) waste Australia, weve significantly reduced packaging using this approach area I am unsure is... Kellogg used recycled materials to package his first box of cereal of our expert writers considerable 56.! Kg CO 2 eq., primary energy 32.3 MJ and water footprint 283 l.! Thanks for shedding some positive light on the critical social impacts, such as Kellogg & # ;... 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