OAK BROOK, ILL. — TreeHouse Foods was more transparent about its better-for-you (BFY) product offerings in 2023 than in previous years, according to the company’s 2024 environmental, social and governance (ESG) report.

TreeHouse said it leveraged certifications to address the following concerns and preferences over ingredients, animal welfare and food sensitivities: gluten-free certification addressing gluten as a sensitivity or allergy, Global Animal Partnership and vegan certifications addressing concerns over animal welfare, and organic and non-GMO certifications addressing preferences toward non-GMO ingredients.

“In 2023, our revenue from these products was approximately $707 million, or 20% of total revenue for the year for products sold in North America with health and nutritional attributes,” TreeHouse Foods said. “These products include the better-for-you and/or organic alternatives. Additionally, our 2023 revenue related to sales of products labeled as ‘non-GMO’ and/or ‘organic’ was approximately $257 million, or 7% of total revenue.”

The report also discussed how TreeHouse handled responsible sourcing in 2023. The company said it used Roundtable on Sustainable Palm Oil (RSPO), Rainforest Alliance and Fair Trade certifications to address concerns about environment, social and labor impacts. 

“Our strategy is guided by our Responsible Sourcing ESG Subcommittee, a cross-functional group across the organization that plans, problem-solves, and offers expertise on all aspects of the subject,” the company said. “They also help to implement our 2030 ESG Goals around sourcing, which include direct sourcing 100% RSPO physical certified palm oil and increasing offerings of third-party certified responsibly sourced cocoa.”

TreeHouse continued enacting a responsible sourcing policy, established in 2022, outlining its expectations for suppliers. These expectations include environmental sustainability; transparency and traceability of priority ingredients; human rights and fair working conditions; workplace health and safety; food safety, quality and regulatory compliance; and business integrity. The company paired this policy with a public-facing “Grievance Mechanism,” which clearly states how third parties can raise grievances about TreeHouse suppliers. 

“In 2024, we expect to update our Responsible Sourcing Policy to include our expectations for suppliers around animal welfare and GFSI certifications for ingredient and food contact suppliers, and a supplier diversity acknowledgement and commitment to increase spend with diverse suppliers,” the company said.

TreeHouse rolled out a Responsible Supplier Survey in October 2023 to look for “areas of potential opportunity with strategic supplier,” the company said. TreeHouse also aims to conduct this survey annually to inform its broader Supplier Scorecard, which assesses suppliers on a wide variety of metrics such as ESG. 

“Some of the principal ingredients for our products include, but are not limited to, casein, cheese, cocoa, coconut oil, coffee, corn and corn syrup, cucumbers, eggs, fruit, non-fat dry milk, oats, palm oil, peppers, soybean oil, sugar, tea and wheat,” TreeHouse said. “Change in weather conditions, increasing frequency of natural disasters and severity of storms, water scarcity and other factors worsened by climate change present risks that impact agricultural productivity and therefore, availability and cost of ingredients.”

TreeHouse prioritizes three of these ingredients due to environmental and social concerns within the supply chain as well as how important they are to the company’s products: palm oil, cocoa and coffee.

For palm oil, TreeHouse found 64% of RSPO certified palm oil was sourced in 2023, which was 5% higher than in 2022.

“We source our palm oil primarily to the Mass Balance (‘MB’), and Book & Claim (‘B&C’) RSPO supply chain standards, with a small percentage certified to the Identity Preserved (‘IP’) standard,” the company said. “Our goal is to achieve 100% physical certified palm by 2030, meaning that 100% of the palm we source directly from suppliers will be certified to MB standards or above.”

For cocoa, TreeHouse found 1.56% of Rainforest Alliance-certified cocoa (by weight) was sourced in 2023, which is 0.12% higher than in 2022.

“Our cookies, candy, beverages and more utilize cocoa in their formulas,” the company said. “For customers interested in responsible sourcing certifications, we offer Fair Trade USA, Fair Trade International, and Rainforest Alliance certifications. Additionally, TreeHouse Foods itself is certified with Fair Trade USA under the Trader Standards and with Fairtrade International under the Fairtrade Trader Standard.”

For coffee, TreeHouse acquired a manufacturing facility to reduce environmental impact. 

“In June 2023, we completed the acquisition of a manufacturing facility in Northlake, Texas, adding roasting, grinding, flavoring, and blending capabilities to enhance vertical integration within our coffee business,” the company said. “The acquisition included the Direct Trade coffee program, which offers 100% third-party verified coffee. The program invests in the farms that we purchase from, helping them reduce environmental impact and improve worker livelihood. Two thousand twenty three was the 10-year anniversary of the program.”