Better Health for All

Karat Packaging's products, which include food packaging, demonstrate a commitment to health and safety. Its Texas facility has achieved NSF certification for its products, indicating adherence to rigorous safety standards for food contact.

The company also offers specific products, such as 8x8 compostable bagasse hinged containers, that are certified PFAS-Free, addressing a known health concern related to 'forever chemicals'. This focus on safe materials and certifications contributes to preventative health by reducing exposure to harmful substances and ensuring food safety. The NSF certification implies a strong safety record and transparent compliance with health codes. While the company uses various materials including plastic, the explicit mention of PFAS-free products and NSF certification for its facility suggests a positive impact on health outcomes through its core products.

Fair Money & Economic Opportunity

Karat Packaging Inc. designs, manufactures, and distributes food packaging products.

The provided articles, including an IPO prospectus, a blog post about PPE donations, and a code of business conduct, contain no evidence that the company offers lending, deposit, or other financial services or products to consumers. Therefore, the KPIs related to fair money and economic opportunity are not applicable to its business model.

Fair Pay & Worker Respect

As of April 1, 2021, none of the company's 638 total employees were covered by a collective bargaining agreement.

Employee sentiment, based on 41 reviews, shows an overall rating of 2.55 out of 5 stars, which translates to approximately 51 out of 100. Specific scores include 2.2 for work-life balance, 2.1 for compensation and benefits, 2.1 for job security and advancement, 2.0 for management, and 2.0 for culture. The company also experiences a high employee turnover rate, with one review explicitly stating a "High turnover rate of employees".

Honest & Fair Business

Karat Packaging Inc. has a Whistleblower Policy and a toll-free whistleblower hotline.

The company states it will promptly investigate suspected Code violations and take appropriate corrective action as determined by the Audit Committee or the Responsible Officer. However, there is no explicit evidence of independent investigation processes. The company also has a Global Anti-Corruption Policy, which mentions compliance with the U.S. Foreign Corrupt Practices Act and anti-corruption laws of other jurisdictions. It requires pre-approval for expenditures exceeding $500 to a private person. While an FCPA-compliant policy is in place, there is no information regarding training frequency or effectiveness metrics.

Kind to Animals

No specific, concrete evidence was found in the provided articles to assess Karat Packaging Inc. against any of the 'Kind to Animals' KPIs. The company's business involves manufacturing and distributing food packaging, which is not typically associated with animal testing, animal-derived ingredients, or animal agriculture. The articles did not provide any data on cruelty-free certifications, animal testing policies or volumes, humane certifications for operations, wildlife conservation impact, ethical input substitution, supplier audits for animal welfare, cage-free sourcing, or investment in animal-free alternatives.

While one article mentioned the company's awareness of and potential to benefit from environmental regulations, this does not constitute active engagement in animal welfare policy improvement or advocacy for higher standards.

No War, No Weapons

Karat Packaging Inc. operates in the civilian market, manufacturing and distributing food packaging products. There is no evidence of the company deriving revenue from arms or defense contracts, nor is there any indication of R&D investment in dual-use technologies with military applications.

The company's Code of Business Conduct and Ethics mentions compliance with U.S. export regulations and trade restrictions, requiring guidance for prohibited destinations, which aligns with avoiding sales to embargoed regimes. The company's core business does not involve weapons, thus no specific ethical red lines related to weapons are needed, nor is there any exposure to controversial weapons.

Respect for Cultures & Communities

Karat Packaging Inc. has not reported any cultural appropriation incidents.

The company provides a whistleblower hotline, accessible by phone, web, and email, for reporting violations. New employees receive training on the Code of Business Conduct and Ethics, and annual training sessions are conducted to refresh employees’ familiarity with the Code.

Safe & Smart Tech

One incident of unauthorized third-party access was detected on October 18, 2024.

The company filed an 8-K report on October 23, 2024, regarding this incident and notified federal law enforcement. The company states adherence to the NIST Cybersecurity Framework and other industry standards, and its incident response and recovery plan addresses legal and reporting obligations, including SEC reporting. The company performs vulnerability scanning, penetration testing, and security monitoring, and also conducts security testing practices.

Zero Waste & Sustainable Products

Karat Packaging's product portfolio is approximately 65% compostable and 25% biodegradable, meaning 90% of its products are designed for sustainable end-of-life.

The company offers BPI-certified compostable products and packaging, with Karat Earth products made from sustainable resources, including paper products certified by the Sustainable Forestry Initiative. Karat has implemented several waste reduction initiatives, including a focus on sustainable packaging, introducing a new line of biodegradable products, investing in a more sustainable manufacturing process, offering compostable products as a waste reduction solution, and utilizing right-sizing algorithms to reduce material waste.