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Corporate Responsibility Goal Methodology & Glossary

Goal Methodology

*Goals will be met by the end of the specified year

Glossary

TERMDEFINITION
Circular Economy and CircularityTerms 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 PackagingPackaging 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.
ConservationThe act of bringing non-agricultural land into conservation protection or supporting an increase in protections and/or stewardship on already conserved lands.
ConsumersPeople who buy and use our products for the purpose of personal use and consumption.
CustomersRetailers 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 3Scope 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 3Scope 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 3Scope 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 ProgramWorking 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 ImpactAn approach developed by the Water Resilience Coalition to exceed the positive impact to water-stressed basins across quantity, quality and access.
Positive HydrationA 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 InputsMaterials 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 PackagingPackaging 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 AgricultureA 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 SourcingOur 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 SuppliersKDP-managed brewer component suppliers: Suppliers that are critical to brewer function and quality where KDP dictates volume and price.
KDP-managed Brewer SuppliersTier 1 brewer suppliers: Contract manufacturers that assemble our brewers.
KDP-managed Brewer SuppliersTier 2 brewer suppliers: Component suppliers that provide component parts to final assembly manufacturers.
Value ChainA 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 PlasticNewly 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”