Utz Brands' 2023 ESG Report: Charting a Course for Responsible Growth

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The company began as a small kitchen operation making potato chips, founded in 1921 in Hanover, Pennsylvania, by Bill and Salie Utz. Over a century later, Utz has grown into a dynamic, publicly traded company with a portfolio of over 1,400 unique snack products distributed nationwide through grocery, mass merchandise, convenience, and online channels. With 156 production sites, offices, and warehouses across the United States, Utz efficiently serves a growing customer base of over 83,600 retailers and distributors, generating net sales of $1.4 billion in 2023.

Environmental Stewardship

Utz's environmental strategy focuses on reducing its carbon footprint, managing waste, and improving water conservation. In 2023, the company achieved a 16.6% reduction in Scope 1 and 2 greenhouse gas emissions through network optimization and facility consolidation, lowering its total emissions to 90,194 metric tons of CO2e. The primary sources of emissions include natural gas combustion and electricity consumption in manufacturing processes. Utz also began extending its GHG accounting to cover Scope 3 activities by engaging with its three largest agricultural suppliers to understand the extent of its broader environmental impact.

The company has committed to minimizing waste by promoting sustainable packaging practices. In 2023, Utz reduced flexible film packaging by transitioning to thinner gauge films, saving nearly 52,000 pounds of material. Additionally, Utz redesigned its iconic rigid snack barrels, optimizing them for stacking and shipping to reduce resin use by nearly 100,000 pounds per year. The company also diverted 48% of its general waste from landfills, repurposing 14,822 tons of unsold products through outlet sales, donations, and animal feed.

Social Responsibility

The company enhanced its Operational Health and Safety Program, aligned with OSHA standards and covers all associates. This resulted in a 10% reduction in the Total Recordable Incident Rate (TRIR) at manufacturing sites. Utz also rolled out Unconscious Bias and Sense of Belonging Management Training to empower teams to cultivate inclusive environments, reducing voluntary turnover from 36.0% to 26.4%.

Surpassing its 2025 diversity goals two years before schedule, achieving nearly 30% women and 10% people of color in senior leadership positions. Utz's ongoing DEI initiatives include a comprehensive three-year strategy, launched in 2021, integrating DEI-focused objectives, goals, strategies, and measures into its HR agenda. The Utz Inclusion and Diversity Council, with over 60 associate volunteers, actively promotes DEI principles across the company.

Utz's community support extended to over $500,000 in combined monetary and product donations to charitable organizations 2023. The company enhanced the impact of associate donations through a matching program with the United Way, resulting in a combined contribution of approximately $66,000.

Governance and Ethical Practices

Utz's governance framework is overseen by its ESG Committee, ensuring that the company upholds high business ethics, regulatory compliance, and responsible sourcing standards. In 2023, Utz integrated its Supplier Code of Conduct into all supplier agreements, emphasizing compliance with international human rights and environmental standards. This code aligns with the International Bill of Rights, the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights.

Utz conducted thorough on-site audits of its manufacturing plants and large regional non-sales distribution centers to promote transparency and accountability. In 2023, the company identified and rectified environmental compliance issues, such as excess wastewater loads at two facilities, and has taken steps to improve treatment processes to ensure ongoing compliance.

Product Quality, Safety, and Transparency

In 2023, the company maintained a 95% average score on the Safe Quality Food (SQF) certification across its manufacturing plants. Utz also prioritized packaging sustainability, with initiatives such as transitioning a variety of multi-packs from plastic sacks to recyclable coated recycled paperboard (CRB), which is estimated to avoid using 251,200 pounds of plastic in 2024.

Looking Ahead

As Utz continues to grow, it remains committed to integrating sustainable practices into its operations.

Howard Friedman, CEO of Utz Brands, expressed optimism about the company's path: "At Utz, we are making our people, our communities, and sustainability integral to how we do business. By fostering a culture that champions sustainable practices and cares for people, we ensure we are best positioned to serve the snack-loving customers of the future."

Environment + Energy Leader