Published 10 months ago.
About a 3 minute read.
Image: Chipotle Mexican Grill
The company aims to increase pounds of local produce purchased, improve diverse employee retention, and increase the number of restaurants with composting programs — goals that can affect executives’ overall bonus payout by up to 15 percent.
This week, Chipotle Mexican Grill announced three
categories of 2023 Environmental, Social and Governance (ESG) goals tied to
Food & Animals: Purchase at least 37.5 million pounds of local produce,
up from 36.4 million pounds in 2022.
People: Improve the retention of its diverse US-based restaurant
support center and field operations employees.
Environment: Institute composting programs in at least 23 percent more
restaurants (which aligns with Chipotle’s broader objectives of increasing
its diversion rate and reducing waste to landfills by 5 percent by 2025).
Join us for a transformational experience at SB Brand-Led Culture Change — May 8-10 in Minneapolis. This event brings together hundreds of brand leaders eager to delve into radical lifestyle shifts and sustainable consumer behavior change at scale. The trends driving cultural acceleration are already underway, and you can be at the forefront of this transformative movement.
The achievement of these goals can positively or negatively impact Chipotle
officers’ 2023 annual incentive bonus by up to 15 percent.
“Chipotle’s ESG goals are a direct reflection of our commitment to inspire real,
sustainable change with a potential impact far beyond this company,” said
Laurie Schalow, Chief of
Corporate Affairs at Chipotle. “We hold our executive leadership team
accountable to make business decisions that Cultivate a Better World, and we
want to continue to transparently showcase the steps we’re taking to help meet
In 2021, Chipotle announced it had created a new ESG metric that tied 10 percent
of its execs’ annual incentive bonus to the company’s progress toward achieving
goals in these three areas; this year's expansion of those goals pushes that
percentage to 15 percent.
Chipotle is committed to increasing total pounds of produce purchased from
local farmers year over year. In 2023, Chipotle’s goal is to purchase at least
37.5 million pounds of local produce, up from 36.4 million pounds purchased in
2022. The organization met its 2022 goal of purchasing more than 57 million
pounds of organic, transitional and/or locally grown ingredients, achieving 58.3
million pounds — with rice and beans excluded from this goal due to external
Chipotle’s Diversity, Equity & Inclusion strategy involves developing and
retaining diverse talent at every level of the organization. In 2023, Chipotle
plans to continue these efforts by improving the retention rate for diverse
employees in restaurant support center and field operations positions.
Last year, Chipotle aimed to increase diversity within its internal pipeline of
candidates for all promotions into salaried restaurant support center positions
and field management roles. As a result, 90 percent of all restaurant management
roles were internal promotions — including 100 percent of US Regional Vice
President roles, 81 percent of Team Directors and 74 percent of Field Leader
positions. The company also aimed to increase diversity above its 60 percent
rate within its internal pipeline of candidates for all promotions into these
positions, which it achieved at 63.6 percent.
As of January 2023, about 1,000 Chipotle restaurants participate in composting
programs. Throughout the year, the chain intends to increase this number by at
least 23 percent. The composting program supports Chipotle’s broader goals of
increasing its diversion rate and reducing waste to landfills by 5 percent by
2025. Chipotle exceeded its 2022 goal of reducing its Scope 1 and 2 greenhouse
gas (GHG) emissions by at least 5 percent, achieving a 13 percent reduction
against 2019 emissions. Additional sustainability progress will be shared in
Chipotle’s Sustainability Report next month.
Chipotle is leveraging its new venture fund, Cultivate
to invest in early-stage companies that can help further its mission and meet
its ESG goals. Chipotle seeks to increase its local produce supply through its
latest investment in Local Line — a leading
local-food sourcing platform for regional food systems helping farms, producers,
food hubs and food buyers digitize their operations and sell products.
Chipotle’s investment will also support the expansion of Local Line across the
US to procure local foods for Chipotle’s 3,200 restaurants.
Cultivate Next is also investing in Zero Acre Farms
— a food company focused on healthy, sustainable oils and fats that is on a
mission to end the food industry's dependence on vegetable oils. The immense
amount of vegetable oils produced today contribute to record rates of
deforestation and carbon emissions; and Zero Acre Farms has a new category of
healthy, cultured oils and fats made by fermentation that use 85 percent less
land than canola oil, emits 86 percent less CO2 than soybean oil, and requires
99 percent less water than olive oil.
Published Mar 24, 2023 11am EDT / 8am PDT / 3pm GMT / 4pm CET