The Honest Kitchen 2021 Impact Report

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SOCIAL & ENVIRONMENTAL Impact Report

2021
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2021

SOCIAL & ENVIRONMENTAL Impact Report

Hello!

Thanks for taking a look at our second Annual Impact Report!

At The Honest Kitchen, we’ve been committed to doing well by doing good since 2002. Our mission is to help as many pets as possible get on the road to good health through good food. And for us, good food really goes beyond the bowl to make a positive impact — from thoughtful management of the fields where our ingredients are grown, to ensuring fair wages for workers throughout our supply chain, to making a difference by volunteering in our local community.

Those guiding principles continue to act as the underpinning of everything we do today, and our Impact Report helps benchmark and track our progress on the initiatives that we feel most strongly about.

Our stakeholders — customers, suppliers, production partners, employees, contractors, consultants, agencies and investors — are all part of The Honest Kitchen’s ecosystem, and we are all accountable to one another. We’re committed to caring for our people, being a positive member of our community, making conscientious choices and continually ensuring good governance.

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OUR MISSION

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WE’RE ON A MISSION TO HELP AS MANY PETS AS POSSIBLE GET ON THE ROAD TO GOOD HEALTH THROUGH goodfood.

WHAT DO WE MEAN BY

good food?

IT MAKES A POSITIVE, TANGIBLE IMPACT ON PET HEALTH AND IS MADE WITH CAREFULLY SOURCED INGREDIENTS AND THOUGHTFUL PRODUCTION METHODS.

Truly good food goes beyond the bowl to support minority suppliers, protect the environment and generate resources that are used responsibly to support internal and external workers. Good food makes a difference in the wider community, too, through direct involvement and philanthropic contributions.

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OUR COMPANY’S VALUES ARE AND LOOKING AFTER OUR PEOPLE, MAKING DECISIONS WITH THOUGHTFULNESS

Healthy

living and thinking that support the mind and body and enable us to thrive.

HO Owning

our work and grasping the big picture — because we’re drivers, not passengers, on our company’s journey.

Nurturing

one another with a work ethic that celebrates creativity, individuality, diversity and freedom to fail.

OUR VALUES
N
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VALUES

ARE ROOTED IN EMPOWERING COMMUNICATING EFFECTIVELY AND THOUGHTFULNESS AND RESPONSIBILITY:

Efficiently

communicating in a way that fosters forward momentum, nimble decision-making and a proactive approach to working through challenges.

ESincerely

connecting with customers, stakeholders and each other to cultivate meaningful dialog and feedback that fuels progress.

ST Trustworthy

action that focuses on always doing what we say and saying what we do.

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PRODUCT & INGREDIENT IMPACT

SINCE 2002, WE’VE BEEN UNCOMPROMISING WITH THE QUALITY AND INTEGRITY OF OUR RAW INGREDIENT SOURCING.

- When possible, we choose local suppliers in order to help minimize the carbon footprint associated with transportation.

- We consolidate purchases from our raw ingredient supply partners whenever we can, which helps to minimize the environmental impact of freight.

- We choose a number of fruit and veggie ingredients grown in Europe, where the majority of member states have voted to either partially or fully ban GMOs.

CLUSTERS INGREDIENTS
70%
OUR
RECIPES’
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97% OF WHOLE FOOD
WERE GROWN IN NORTH AMERICA IN 2021
OF
DEHYDRATED
INGREDIENTS WERE GROWN IN NORTH AMERICA IN 2021

PRODUCT & INGREDIENT IMPACT

When we choose the ingredients we’re going to purchase each year, we take a multitude of factors into consideration with food safety at the very top of the list. Obviously, great taste is absolutely essential, too, and even though we’re making our finished products for cats and dogs, we take pride in the fact that being truly human grade means we can have a little taste of every prospective raw ingredient ourselves.

Besides a good robust flavor, we seek out ingredients with vibrant colors because the pigments in raw produce do more than impart beauty — they actually supply vital phytonutrients or antioxidants, which have a direct positive impact on health!

As we start to think more about the social and environmental implications of our raw ingredient purchases, it’s essential to weigh up a wide array of considerations. When possible, we choose local suppliers in order to help minimize the carbon footprint associated with transportation. We consolidate purchases from our raw ingredient supply partners whenever we can, which helps to minimize the environmental impact of freight.

100% of the produce we buy is confirmed by the supplier to be non-genetically modified. In 2021, we purchased more than 15 million pounds of non-GMO produce!

100% OF THE PRODUCE WE BUY IS CONFIRMED BY THE SUPPLIER TO BE NON-GENETICALLY MODIFIED.
WE USED MORE THAN 15,000,000 LBS OF NON-GMO PRODUCE IN 2021
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<1% NORTH AMERICA 5% SOUTH AMERICA 5% ASIA AFRICA R EAD OU R S OU RCI NG STAND AR DS> Countries we source food ingredients from 8% EUROPE 82% <1% NEW ZEALAND <1% NORTH AMERICA 5% SOUTH AMERICA 5 A AFRICA R EAD OU R S OU RCI NG STAND AR DS> Countries we source food ingredients from 8% EUROPE 82% *dehydrated PRODUCT & INGREDIENT IMPACT 11% OF ALL THE INGREDIENTS WE BOUGHT IN 2021 WERE CERTIFIED ORGANIC WE USED 3,500,000 LBS OF ORGANIC PRODUCE WE USED 1,500,000 LBS * OF GAP CERTIFIED CHICKEN IN 2021 (THAT’S NEARLY 5M LBS OF GAP FRESH CHICKEN!) p10

PRODUCT & INGREDIENT IMPACT

We’re super passionate about the issue of genetic modification, not only because of the negative effects that GMOs have on the environment, soil and surrounding land, but also because increasing numbers of studies are demonstrating that consuming GMOs has adverse effects on animals and people. For example, a 2013 study on hogs by Judy Carman et al. found that those fed a genetically modified diet had considerably more stomach inflammation compared with a group fed a non-GMO diet. You can read more about GMO safety at www.nongmoproject.org/gmo-facts/.

A total of 11% of all the ingredients we bought last year were Certified Organic, for a grand total of 15,000,000 pounds of organic produce and 900,000 pounds of organic chicken purchased in 2021. This includes grains, quinoa, flaxseed, kelp, chia seed and coconut as well as about half of our dehydrated chicken.

Our Certified Organic quinoa is grown by hundreds of independent family microfarmers who use regenerative agriculture practices as part of a cooperative in Bolivia and Peru.

We bought a grand total of 1,500,000 pounds of humanely raised, free range chicken in 2021. 100% of the chicken in our dehydrated diets is free range and is GAP (Global Animal Partnership) Certified Humane.

We formalized our chicken welfare commitment by getting a number of our recipes Animal Welfare Certified in 2021 and beyond, with a formal approval seal appearing on product labels.

WE BOUGHT 500,000 LBS OF MARINE STEWARDSHIP COUNCIL (MSC) CERTIFIED FISH IN 2021

OUR THREE BASE MIX DIETS, LIMITED INGREDIENT FISH RECIPE AND ALL OUR DEHYDRATED FISH TREATS HAVE BEEN VERIFIED BY THE NON-GMO PROJECT.

The Marine Stewardship Council (MSC) is a non-profit organization that helps safeguard the health of the world’s oceans by recognizing and rewarding sustainable fishing practices. In 2021, 98% of all fish purchased—that’s 500,000 pounds!—was MSC Certified Fish, including wild caught salmon, cod, whitefish and wolffish. The herring in our Smittens ® is locally caught fish, governed under the Latvian Ministry of Agriculture.

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SUPPORTING BIODIVERSITY

17% 21% 19%

A total of 17% OF OUR SUPPLIERS in 2021 have enacted formal programs to PROTECT WILDLIFE HABITATS, such as the replanting of areas affected by deforestation. 21% OF OUR SUPPLIERS operate formal policies to consistently REDUCE PESTICIDE USAGE, using only the very minimum necessary to safeguard for basic crop production. Minimizing pesticide usage helps to create healthier raw ingredients, beginning right at the farm. 19% OF OUR SUPPLIERS

OPERATE ENVIRONMENTAL PROGRAMS for superior land management, soil-quality improvement, erosion minimization and organic-matter building through conservative fertilizer usage.

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COMMUNITY IMPACT WE DONATED $140,749 TO NON-PROFITS AND OUR TEAM COLLECTIVELY VOLUNTEERED MORE THAN 132 HOURS IN 2021 p13

WORKFORCE & SUPPLY CHAIN DEMOGRAPHICS

The Honest Kitchen began in 2002 and was started by a then 27-year-old female founder, who’s still an owner, sits on the board and serves as the company’s Chief Integrity Officer today.

65% of our total workforce identifies as female.

As a responsible organization, part of our commitment involves going beyond our own direct impacts and actions to weave accountability and social/environmental responsibility throughout our entire supply chain.

We’ve recently enacted policies to formally commit to choosing suppliers that are owned or led by women or minorities, when all other quality factors for an ingredient are equal.

During 2021, 23% of our raw ingredient suppliers were women-owned or had women in their leadership roles. 19% of our suppliers were owned or led by minorities or people from underrepresented communities.

OF OUR TOTAL WORKFORCE IDENTIFIES AS FEMALE
OUR WORKERS IN MANAGEMENT POSITIONS
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65%
62% OF
OR HIGHER IDENTIFY AS FEMALE
COMMUNITY IMPACT 47% OF EMPLOYEES PARTICIPATED IN MOVEMENT CHALLENGES AVERAGING A COLLECTIVE 1.4M STEPS PER MONTH. p15

PACKAGING 63%

Currently, a total of 63% of our packaging is made from renewable materials and is fully recyclable after use. Our goal is for 80% of our packaging to be renewable and recyclable by the end of 2024.

Our dehydrated food boxes are made from 18% post-consumer paperboard, and our shipping cartons are more than 40% recycled material.

We’re currently investigating ways to reduce our total packaging usage with innovative materials and thereby lessen the environmental impact of our boxes, bags and pouches.

OUR PACKAGING
MADE FROM RENEWABLE MATERIALS AND IS FULLY RECYCLABLE AFTER USE
THE VIRGIN PAPERBOARD WE USE IS FROM SUSTAINABLE FORESTRY INITIATIVE (SFI) COMPLIANT SOURCES
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OF
IS
OF
100%

QUALITY ASSURANCE

BEING TRULY HUMAN GRADE MEANS A WHOLE HOST OF EXTRA MEASURES TO ENSURE THE QUALITY AND SAFETY STANDARDS OF EACH AND EVERY PRODUCT WE MAKE. SINCE OUR FOODS, SUPPLEMENTS, TOPPERS AND TREATS ARE ACTUALLY MADE IN PLANTS THAT CONFORM TO ALL HUMAN FOOD STANDARDS, OUR QUALITY ASSURANCE PROGRAM IS DESIGNED TO ATTEST TO THE NECESSARY STANDARDS THAT WOULD APPLY IF A HUMAN WERE TO BE THE END CONSUMER!

We have an extensive sampling program for our finished goods and test at an independent third-party laboratory to make sure every batch is free and clear of pathogens, such as E. coli, salmonella, and listeria. The laboratory also checks numerous other food safety and quality indicators.

Our strict Test, Hold and Release Program means no finished goods are released into distribution until the test results come back.

We also conduct routine laboratory tests to ensure our foods meet the correct nutritional profiles. That includes testing for vitamins, minerals and amino acids.

For Whole Food Clusters, our new dry food innovation, we run daily proximate analyses (protein, fat, fiber and moisture), water activity tests and pathogen assays. Every month, Clusters also undergo screening for heavy metals along with multiple tests to verify complete amino acid profiles, vitamins and minerals. We perform full AAFCO profiles routinely for each recipe and also routinely screen for contaminants like melamine, ethoxyquin and fluoride.

Another aspect of our human grade production involves metal detection and rare earth magnets along our production lines, temperature and humidity checks and ATP (adenosine triphosphate) facility swabs to monitor for food safety threats — all conforming to a standard fit for human foods.

At the end of the day, human grade is a standard, not a slogan, and we’re incredibly proud to offer products that are meaningfully different from almost everything else in the industry.

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WE’RE COMMITTED TO CONTINUALLY IMPROVING AND RAISING THE BAR ON EVERYTHING WE DO, WHETHER IT’S HELPING OUR PEOPLE TO GROW AS INDIVIDUALS, SOURCING INGREDIENTS THAT MEET EVEN HIGHER STANDARDS AND CERTIFICATIONS, OR REDUCING OUR CARBON PAWPRINT WITH MORE EFFICIENT PROCESSES AND BETTER PACKAGING. THANKS FOR SUPPORTING THE HONEST KITCHEN AS WE WORK TO MEET OUR SOCIAL AND ENVIRONMENTAL GOALS.

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