This document sets out the methodology behind two assessments Huel completed in 2025 and 2026: the Impact Materiality Assessment and the Environmental Assessment. Together, they form the basis of our approach to identifying and prioritising the issues that matter most across our value chain, for people, the planet, and our business.
In 2025, we carried out our first Impact Materiality Assessment (IMA) to understand how our business impacts
people and the planet, and to focus our efforts on the issues that matter most.
Our assessment covers impacts across our full value chain (upstream, operations and downstream), including:
It includes both issues addressed in external standards and additional topics relevant to our business and stakeholders. We focus on impact materiality, how our activities affect people and the planet, rather than only financial risk.
Our approach followed four steps: mapping our full value chain to identify where impacts occur; identifying a broad set of environmental, social and governance impacts, including positive and negative, actual and potential; scoring each impact based on severity and likelihood; and grouping impacts into material topics.
A topic is considered material where it includes at least one critical or significant impact. We assessed over 150 impacts in total.
Stakeholder perspectives were central to our approach.
We engaged, or incorporated input from:
We built on existing engagement channels, such as employee surveys, supplier processes and customer feedback, complemented by targeted stakeholder interviews.
Below is a list of our material topics (both positive and negative impacts) and corresponding target set for each. We will report progress against these targets annually.
Status definitions:
| Climate | Reduce carbon intensity to 0.28 kgCO2e by FY27 and keep all products below 1.5°C climate-aligned thresholds | On track |
|---|---|---|
| Upstream environmental impacts | Ensure 75% of co-manufacturers by volume monitor + report on energy, water and waste by end FY27 Integrate water and biodiversity risk assessment into our annual Country Risk Assessment by Q4 FY26 | In progress Planned |
| Downstream environmental impacts | Transition labelled pouches to pre-printed on core large format ranges across H2 FY26 Transition all non-recyclable plastic packaging to recyclable materials by 2030 | In progress Planned |
| Worker rights and wellbeing | Keep increasing overall team happiness at Huel - 70% of the team reporting high engagement and an improvement on ENPS | On track |
| Supply chain worker rights and wellbeing Nutrition & customer education Community impact Ethics & compliance | Maintain ≥95% of ingredient volume and ≥90% of ingredient spend with suppliers holding a verified ethical audit Extend human rights due diligence to Tier 2 suppliers covering 50%+ of volume and 100% of high-risk categories by end FY27 Conduct quarterly reviews of product nutrition to check alignment with evolving regulatory requirements + current nutrition science Deliver the 1% Community Fund annually, supporting programmes aligned to nutrition, food access and community wellbeing Ensure >95% of suppliers sign our Supplier Code of Conduct by Q4 FY26 | On track Planned In progress On track On track |
| Responsible sourcing & human rights Governance and transparency | Complete a 4-pillar SMETA audit of the Milton Keynes site by Q2 FY26 and implement all corrective actions within 12 months Develop and approve a Stakeholder Governance Policy by Q3 FY26 | In progress In progress |
| Regenerative farming & collective action | Complete and publish results of oat/clover regenerative trials by Q2 FY27 and share insights publicly to support collective progress on regenerative agriculture. | On track |
The assessment was led by our Sustainability team, with input from senior stakeholders. Results are reviewed at leadership level, with oversight from our Board, and directly inform our strategy and decision-making. Each target has a clearly assigned internal owner responsible for delivery.
We will repeat this full assessment at least every three years. Between full assessments, we will carry out interim reviews with selected stakeholders to ensure our material topics remain relevant and up to date. Once a target is achieved, we set new targets to continue driving progress.
Building on the Impact Materiality Assessment, we completed an Environmental Assessment in April 2026 to map environmental impacts in greater detail across our full value chain. The assessment identifies and prioritises the environmental issues where Huel has the greatest responsibility to act, using recognised external frameworks and datasets alongside internal operational data.
The assessment covers environmental impacts across Huel's full value chain, including:
Both actual and potential impacts are considered, covering the five drivers of nature change: climate change, land and sea use change, resource use, pollution, and biodiversity loss.
The assessment follows an eight-step methodology: value chain mapping; identification of specific commodities with significant global environmental pressures; ingredient-specific impact analysis; value chain hotspotting; impact scoring; assessment of actual and potential impacts; location-specific risk analysis; and supplier prioritisation. Impacts were scored based on their scale (the extent of the impact), scope (geographical spread), and irremediability (how reversible the impact is). These factors were combined to determine overall severity, assessed alongside likelihood to identify material impacts.
The assessment drew on the following external frameworks and datasets:
These were supplemented by desk-based research and stakeholder input from Huel's procurement and product teams.
The most significant environmental impacts are concentrated in raw material sourcing, ingredient processing, packaging and disposal, with upstream supply chain activities driving the majority of impacts.
Priority material environmental impact areas:
High impact commodities identified:
The Environmental Assessment was led by Huel's Sustainability team and is reviewed annually. Results are considered alongside the Impact Materiality Assessment findings in Huel's strategy and decision-making.