NEWPORT BEACH, CALIF. — Quick-service restaurant chain Chipotle Mexican Grill announced its 2023 environmental, social and governance (ESG) goals.
Chipotle presented the following as its three main goals for 2023, which can be categorized by food and animals, people, and the environment:
- Purchase at least 37.5 million lbs of local produce, up from 36.4 million lbs in 2022.
- Improve the retention of its diverse US-based restaurant support center and field operations employees.
- Institute composting programs in at least 23% more restaurants.
As an incentive to achieve the ESG goals, Chipotle’s executive officers will receive an annual bonus up to 15% depending on progress on the goals.
“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 corporate affairs, 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 these objectives.”
As of January 2023, around 1,000 Chipotle location participated in composting programs, and the company looks to increase that number by at least 23%. Last year, Chipotle exceeded its goal of reducing its Scope 1 and 2 GHG emissions by at least 5%, achieving a 13% reduction.
In 2022, Chipotle met its goal of purchasing over 57 million lbs of organic, transitional and/or locally grown ingredients. The company said it is committed to increasing the number of total pounds purchased from local farmers every year.
Chipotle added that it reached a 63.6% diversity rate within its internal pipeline of candidates for all promotions last year.
As of Dec. 31, 2022, Chipotle operated nearly 3,200 restaurants in the United States, Canada, the United Kingdom, France and Germany. The company owns and operates each location and employs over 10,000 employees.
Through its new venture fund, Cultivate Next, Chipotle is investing in other companies that can further its mission and help reach its ESG goals.
An investment in Local Line, a leading local food sourcing platform that digitizes operations and selling of products, will support local supply. Local Line will expand across the United States, procuring local food for Chipotle restaurants.
Cultivate Next is also investing in Zero Acre Farms, a food company focused on healthy, sustainable oils and fats.