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GOOD FOOD, EVERY DAYâ„¢ H.J. Heinz Company

GOOD FOOD, EVERY DAYâ„¢ H.J. Heinz Company

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34 | HEINZ Corporate Social Responsibility Report 2005<br />

Commitment to the<br />

Environment<br />

Building on our proud reputation for leadership in product purity, we are<br />

similarly committed to protecting the quality of the environment. We recognize<br />

the impact our food processing operations have on global and local environments.<br />

In response, each <strong>Heinz</strong> affiliate, in every country where we do business, has<br />

established programs to review our environmental impact and to safeguard<br />

the environment when and where possible.<br />

The <strong>Heinz</strong> Global Environmental Policy<br />

provides common standards for all of our<br />

facilities and helps to ensure that environmental<br />

safeguards are incorporated into<br />

our operations. Accordingly, this policy<br />

allows for the protection of the environment<br />

and leads to improved manufacturing<br />

efficiencies and reduced costs. Every<br />

<strong>Heinz</strong> manufacturing location around the<br />

world subscribes to the following principles:<br />

• Implementation of an Environmental<br />

Management System (EMS).<br />

• Compliance with applicable legal<br />

requirements — as the minimum<br />

standard.<br />

• Establishment of annual EMS<br />

objectives and targets to drive<br />

continuous improvement.<br />

• Reduction in environmental impact<br />

through the efficient use of energy, raw<br />

materials, water and packaging.<br />

• Continuous training and education to<br />

increase employee awareness of their<br />

role in environmental control.<br />

• Supplier and contractor commitment<br />

and partnership to understand the<br />

environmental impact of their operations<br />

and to work with <strong>Heinz</strong> to identify and<br />

reduce these effects.<br />

• Continuous assessment of environmental<br />

management and performance.<br />

Supplier and Contractor Commitment: A Partnership<br />

Of note: As the only U.S.-based multinational food company member of the Dow<br />

Jones Sustainability Group Index (North America)*, we must meet criteria on a<br />

variety of subjects that are of concern to not only our stockholders, but also to all<br />

those who are concerned with the environment. Water use certainly is a concern,<br />

particularly in areas where our growers must combat arid conditions. To avoid<br />

water waste, we have begun using a process called drip irrigation, which delivers<br />

a steady supply of moisture close to the ground, effectively nourishing plants<br />

without quick evaporation.<br />

* Dow Jones started the North American index last year after it acknowledged<br />

that U.S.-based multinationals are at a disadvantage relative to European-based<br />

multinationals as far as sustainability and CSR are concerned.<br />

An example of how <strong>Heinz</strong> works with suppliers to reduce water use in crop production:<br />

In Portugal and Greece, <strong>Heinz</strong> is increasing the use of drip irrigation. For the<br />

2003 growing season, for example, drip irrigation accounted for 98 percent of<br />

crop irrigation, with 1 percent by sprinkler irrigation and 1 percent furrow (open<br />

flow) in Portugal. In Greece, 85 percent was by drip irrigation and 15 percent by<br />

sprinkler irrigation.<br />

In Australia, drip irrigation has been the preferred and virtually exclusive irrigation<br />

method for <strong>Heinz</strong> producers for the past several years.<br />

In California, drip irrigation also is replacing the traditional method of furrow<br />

irrigation. Although still in the minority of processes used by the industry, drip<br />

irrigation for tomato growing has doubled each of the past three years (to 2004)<br />

in key tomato production areas. It currently represents about 15 to 20 percent<br />

of the total acreage, and another major expansion is planned for the upcoming<br />

season. In California, <strong>Heinz</strong> contracts directly with growers for only 25 percent<br />

of the total tomato requirements from this area, relying upon other tomato<br />

processors for its requirements. <strong>Heinz</strong> works closely with these suppliers to<br />

help ensure that they are promoting the best practices.

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