Transcription
2019 SUSTAINABILITY REPORT UPDATECULTIVATE ABETTER WORLD
Food & Animals I People I Environment2019 Sustainability Report UpdateCULTIVATE A BETTER WORLD2019Food &AnimalsPEOPLECHAPTERCHAPTERCHAPTER123Envir0nment2
Food & Animals I People I Environment2019 Sustainability Report Update3Table of ContentsINTRODUCTIONFOOD & ANIMALSPEOPLEENVIRONMENTP. 4P. 6P. 19P. 35A Letter From OurChairman and CEO . . . . . . . . . 42019 Food & AnimalImpact Overview . . . . . . . . . . . 72019 PeopleImpact Overview . . . . . . . . . . 202019 EnvironmentImpact Overview . . . . . . . . . . 36A Letter From Our Head ofSustainability . . . . . . . . . . . . 5Awards & Recognition . . . . . . . 8Awards & Recognition . . . . . . 21Awards & Recognition . . . . . . 37PROGRESS UPDATESPROGRESS UPDATESDiversion Overview . . . . . . . . 38Animal Welfare . . . . . . . . . . 9Benefits . . . . . . . . . . . . . . 22Waste Makeup . . . . . . . . . . . 39Chicken Welfare . . . . . . . . 10Training & Development . . . 23Gloves to Bags . . . . . . . . . . . 40Local Produce Program . . . . 11Employee Resource Groups . . . 26PROGRESS UPDATESOrganic Ingredients . . . . . . 12Turnover . . . . . . . . . . . . . . 28Waste . . . . . . . . . . . . . . . . 41Suppliers . . . . . . . . . . . . . 13Giving . . . . . . . . . . . . . . . . . 29Packaging . . . . . . . . . . . . . 45Our Commitment toYoung Farmers . . . . . . . . . . . 14The Chipotle CultivateFoundation Overview . . . . . . . 30Energy . . . . . . . . . . . . . . . 47Fundraisers . . . . . . . . . . . . . 33Food Donation . . . . . . . . . . . 34Energy Management . . . . . . . 49Emissions . . . . . . . . . . . . . . 50Offsets . . . . . . . . . . . . . . . . 51Climate Change . . . . . . . . . . 52Committing toScience Based Targets . . . . . 53
Food & Animals I People I Environment2019 Sustainability Report UpdateINTRODUCTIONA LetterFrom OurChairmanand CEOWhen I joined Chipotle in 2018, I was excitedfor the opportunity to lead a brand that was sopurpose-driven. These past two years have helpedme truly understand what our purpose is and howpowerful it can be. “Cultivate a Better World” isnot just a slogan, it’s our mission.We’ve worked hard to support our local communities throughfundraisers and food donations, while furthering access toreal, nutritious food for everyone. We’re continually strivingto take better care of the environment and our communitiesby championing sustainable agriculture. Our mission weavesits way throughout the world – one person, one farm, andone animal at a time.For me, Cultivate a Better World is about doing the rightthing, even when it’s hard. It’s about standing up for the nextgeneration of farmers to give them a fighting chance so that,together, we can ensure the future of real food is safe. It’sabout providing our 85,000 employees and their familieswith industry-leading benefits and access to healthcare.It’s about setting up compost and recycling at every Chipotlepossible to keep unnecessary waste out of the landfill.I am committed to changing the food culture for the better.I’m committed to our legacy being one of access to real andnutritious food that is raised responsibly. I’m committed toserving food that was prepared by passionate people wholove their job. I’m committed to supporting our employeeswith industry-leading benefits. I’m committed to continuallyunderstanding and improving the impact we have on ourenvironment, throughout our entire value chain.I am so proud of our progress, but I’m equally asencouraged by where we are going. Our sustainabilityefforts are a continual journey, and we’re working tirelesslyto remain on the cutting edge of positive impact. I hope youalso feel encouraged by the data in this progress update.For me, Cultivate a BetterWorld is about doing theright thing, even when it’shard. It’s about standingup for the next generationof farmers to give them afighting chance so that,together, we can ensure thefuture of real food is safe.Whether you’re reading this as a customer or employee,supplier or vendor, investor or stakeholder, I hope youshare my pride in supporting Chipotle and our mission toCultivate a Better World.Sincerely,Brian NiccolChairman and CEOChipotle Mexican Grill4
Food & Animals I People I Environment2019 Sustainability Report Update5INTRODUCTIONA Letter FromOur Head ofSustainabilityI’m extremely honored and excitedto share with you the progress wehave made towards our public goalssince last reporting.With a mission to “Cultivate a BetterWorld,” comes great responsibility toensure our actions as a brand alignwith that message. Know that we havebeen working hard behind the scenes tostay on the leading edge of corporatesustainability.From investors,to suppliers, toshareholders and ourcustomers, we workeach day to make youproud of Chipotle.I want to individually thank you for readingand, more importantly, for caring. We are sofortunate to have such an engaged group ofstakeholders. From investors, to suppliers,to shareholders, to employees and ourcustomers, we work each day to make youproud of Chipotle. When you eat Chipotle,you are supporting a business with integritythat is actively fighting to Cultivate a BetterWorld.and none of these material issues are simple.While there is so much thought, data, andpiloting that goes into our strategy, we wantto hear from you on where you believe thereis more work to be done. Much like the stateof sustainability, our mission is ever evolving,and we want you to be part of our journey.From the young farmers I have met acrossthe country, to the NGOs we’ve partneredwith and the many, many talented crewmembers we employ in our restaurants, I’vebeen so inspired by everyone I have engagedwith this last year. It will take all of us workingtowards this common goal of Cultivating aBetter World. I am so encouraged by whatyou all have shown us.I welcome any feedback, engagement andideas regarding the information you find inthis report and beyond. I want this report,and all others, to serve as a conversationstarter. Sustainability is such a broad fieldWhile we are proud of the progress wehave made, we know there is much work tobe done still. It is this never-ending journeytowards “more sustainable” that keepsus eager for more brainstorming, moreinnovation, and more progress.With gratitude,Caitlin LeibertDirector of Sustainability
Food & Animals I People I Environment2019 Sustainability Report UpdateCHAPTER1Food &Animals6
Food & Animals I People I Environment2019Food &AnimalImpact2019 Sustainability Report UpdatePURCHASEDPURCHASEDOF ORGANIC BEANS, RICE,AND WHEAT FOR TORTILLASOF LOCAL PRODUCE FROM62 LOCAL FARMERS15MPounds35.5MPoundsOverviewCONTRIBUTED 500,000TO SUPPORT YOUNG FARMERSAWARDWINNINGANIMAL WELFARE PROGRAM2019 Food & AnimalImpact Overview29.5MPOUNDSOF CHICKEN FED BYNON GMO GRAINSIncreasedOUR DOMESTIC PORK SUPPLYFROM SMALL-TO-MEDIUMSIZED FARMS BY33.4%7
Food & Animals I People I Environment2019 Sustainability Report Update2019 Chain Reaction ScorecardFOOD & ANIMALSAwards &RecognitionIn 2019, we receivedawards and recognitionfor our sourcing andstandards including:AACD DFReceived a Compassionin World Farming GoodSow Commendation.“ Thankfully, food businesses likeChipotle have stepped up to the platewhere it matters most for farmedanimals to eliminate the worst-of-theworst factory farming practices. We’reencouraged by Chipotle’s dedicationto improving the lives of mother pigsand look forward to continuing to workalongside the company in the future.”— Compassion in World Farming“A” score on theAntibiotics OffThe Menu “ChainReaction Scorecard”.Achieved new highBBFAW animalwelfare score(moved fromTier 3 to Tier 2).A score on theHumane SocietyUnited States’ FoodIndustry Scorecard,which ranked theanimal welfareprogress of nearly 100major food companies.Chipotle is the highestranked restaurant onthe list.8
Food & Animals I People I Environment2019 Sustainability Report UpdateFOOD & ANIMALSAnimal WelfarePROGRESS UPDATE33.4 %Animal welfare is important to us and a key component of our Foodwith Integrity vision. That’s why we’ve set certain goals to helpmake sure we work with farms that responsibly raise their animals.2Increase total pounds of porkproduced domestically by smallto-medium sized farms (thosethat sell 10 to 1,000 hogs peryear) by 5% in 2019.In 2019, we increased our porkpurchased from domestic small-tomedium sized family farms by 33.4%Accomplished5%Increase non-GMO feed given tochickens in our supply chain to45% by 2020.BelowtargetWhile the output from our non-GMO grain growersincreased, it couldn’t keep up with how fast ourchicken purchases grew in order to satisfy increasedcustomer traffic.Because of this, the overall percentage of non-GMO feed that we usewent down. However, we supported 29.5 million pounds of chicken fed bynon-GMO grains, which accounted for 20% of our 2019 supply.RESULT1PROGRESSGOALGOALS9
Food & Animals I People I Environment2019 Sustainability Report UpdateFOOD & ANIMALSChicken WelfarePROGRESS UPDATEChipotle is committed to making responsibly raised meats accessibleto everyone. To further improve our chicken welfare, we havecommitted to using standards aligned with the Global AnimalPartnership’s standard for broiler chickens.GOALS1Continue to work with ourchicken suppliers to advancebroiler chicken welfare withrespect to environmentalenrichments, natural lighting,improved stocking density, andcontrolled atmospheric stun.PROGRESSIn 2019, we attended and spoke at two summits dedicated to thetopic of our 2024 broiler chicken welfare commitments, as wellas heard from the researchers behind these commitments.ON TRACKWe held multiple discussions with key supply partners to scope out the potential timelinesand investments that would be necessary in progressing toward our 2024 broiler chickenwelfare commitment. In 2019, we extended this 2024 broiler welfare commitment beyondour US market to our restaurants in Canada and Europe.10
Food & Animals I People I Environment2019 Sustainability Report UpdateFOOD & ANIMALSLocal Produce ProgramPROGRESS UPDATEBuying from local farmers and growers not only helps strengthen ruralcommunities, it also means we get delicious ingredients that travel fewer milesto our restaurant. Our communities win, our restaurants win, and you win.GOALS12Increase both the total poundsof produce purchased fromlocal growers and the numberof growers in our Local GrowersProgram in 2019.Expand our Local GrowersProgram beyond produce toinclude meat, dairy and otherapplicable ingredients by 2020.PROGRESSIncreased local produce by 6.5 millionpounds in 2019 (from 29 million in2018 to 35.5 million in 2019)AccomplishedOn TrackIncreased number of local growers by19 (from 43 growers in 2018 to 62growers in 2019)In an effort to expand our tracking oflocal ingredients beyond produce, wecreated an online tool that maps outfarm and processing plant locations inrelation to our distribution centers andrestaurants. This first step will allow usto determine where we stand today andwhat goals to set for the future.11
Food & Animals I People I Environment2019 Sustainability Report UpdateFOOD & ANIMALSOrganic IngredientsPROGRESS UPDATEWhile we already serve more organic ingredients than any fastfood chain, we still don’t consider the job finished. Sourcingorganic is one of the many ways we ensure that ingredients areraised responsibly. Not to mention it just tastes better.GOALS1Increase both the total poundsand total percentage of organicrice, beans and tortillaspurchased by 2021.PROGRESSBeans: increased from 7.3 millionpounds to 9.4 million poundsAccomplishedRice: increased from 2 million poundsto 2.1 million poundsWheat Flour: increased from 3 millionpounds to 3.4 million poundsCilantro: increased from 30% organicto 50% organic and 21% transitional12
Food & Animals I People I Environment2019 Sustainability Report UpdateFOOD & ANIMALSSuppliersPROGRESS UPDATEAt Chipotle, we’re especially thankful for the farmers whosupply our ingredients. That’s why we’re always looking forways to show our appreciation for everything they do.GOALS1In an effort to ensure farmersare compensated fairly, wewill map meat and dairyfarmer networks to ensure ourpremiums reach the individualfarmer throughout the supplychain.PROGRESSIn 2019, we created anonline tool that maps outour farmer network.On TrackWe then initiated discussions withmultiple suppliers to gather thebreakdown of where each cent of ourpremiums go.We will continue to expand our effortsin this very important area.13
Food & Animals I People I Environment2019 Sustainability Report UpdateOur Commitment toY o u n g Fa r m e r sOurCommitmenttoYoungFarmersReal food needs real farmers andreal farmers need a real chance.Farmers committed tosustainable and ethical farmingneed help to have a chance tosucceed – both for the sake of thefuture of real nutritious foodand the communities that relyon these farms.14
Food & Animals I People I Environment2019 Sustainability Report UpdateOurIn the United States, young farmersare facing more challenges than ever:CommitmenttoYoungFarmersmillion acres ofwill change ownership in the next 5 yearsof farmsLOST money last yearlostmore farmers wereinrecent years than gainedIn 2019, we committedto supporting the nextgeneration of farmers.Through our purpose to Cultivate aBetter World, we’re putting programsin place that make a real impact,including seed grants, educationand scholarships, and guaranteedthree-year contracts.At the time of publication, theChipotle Cultivate Foundation hascontributed more than 500,000to support the next generation offarmers.15
Food & Animals I People I EnvironmentOurCommitmenttoYoungFarmersEDUCATION AND NEXT-GENERATION SCHOLARSHIPSBoth Chipotle and The Chipotle Cultivate Foundationhave partnered with Niman Ranch’s Next GenerationScholarship to cultivate the future of farmingthrough education and scholarship opportunities.Chipotle has contributed more than 250,000to the scholarship fund. Through the ChipotleCultivate Foundation, we have increased our 2020pledge five-fold, with a 2020 pledge of 125,000.In addition to the scholarship fund, Chipotle is alsopartnering with Niman Ranch to sponsor educationand training opportunities for young farmers.2019 Sustainability Report Update16
Food & Animals I People I Environment2019 Sustainability Report UpdateOurCommitmenttoYoungFarmersYOUNG FARMER GRANT PROGRAMIn partnership with the National Young Farmer’sCoalition (NYFC), The Chipotle Cultivate Foundationis offering startup grants to 50 young farmersunder the age of 40. Support will go towards needssuch as a new barn, new equipment, or a just a dayto-day jumpstart.We raised money through consumer actions tofund the Young Farmer Grant Program. OnDecember 6, 2019, 1 from every entrée purchasedon chipotle.com and the Chipotle app went towardsthe Young Farmer Grant Program via the ChipotleCultivate Foundation.As a follow-up on New Year’s Day, we got festivewith a “Cultivate the Future of Farming” floatfeatured in the Rose Parade. Chipotle donated 1 to the National Young Farmers Coalition, viaThe Chipotle Cultivate Foundation, for everypost on Facebook, Instagram and Twitter using#farmers. Our float highlighted real ingredients andcelebrated the next generation of local growers.This activation resulted in a 250,000 donationfrom The Chipotle Cultivate Foundation to the NYFCto help support the Young Farmer Grant Program.17
Food & Animals I People I Environment2019 Sustainability Report UpdateOurCommitmenttoYoungFarmersTHREE-YEAR CONTRACTSChipotle implemented Three-Year Contracts forfarmers under the age of 40 who meet our Foodwith Integrity standards. Starting with beef, pork,and dairy — we’ll buy our products from thesefarmers for a minimum of three years to helpincrease their chances of profitability despitemarket fluctuations.We are committed to helping the next generationof farmers by paving a path to profitability. Wewanted to give these young farmers more than justa chance, so we came up with a few initiatives thatprovide the framework, resources, and stabilityneeded to succeed.With the help of our network of approved suppliers,we created a unique program that providescommitments that helps young farmers securecapital to invest in their farms and reduce the riskof market changes or uncertainty.Additionally, we’ll support these young farmersthrough various approved livestock and dairynetworks, including Niman Ranch, and our LocalGrowers Initiative.By focusing on young farmers in particular, we’reensuring our support of sustainable agriculture,as more than 80% of young farmers are farmingsustainably according to the NYFC Young FarmerCensus. Through this program, and all of theassistance we’re offering young farmers, we hopeto help farming remain a sustainable vocation forgenerations to come.18
Food & Animals I People I Environment2019 Sustainability Report UpdateCHAPTER2People19
Food & Animals I People I Environment2019 Sustainability Report UpdateD o nate d o v e r2019PEOPLEIMPACTOverview 2.8AWARDMillion WINNINGCULTUREIN FOOD TO THOSEIN NEED IN OURCOMMUNITIESImpact OverviewDonat ed ov er 9MillionTHROUGH 52,206LOCAL COMMUNITYFUNDRAISERSG AV EG r a nt ed ov erL a unch edTO THE UNITEDWAY TO HELP WITHDISASTER RELIEFEFFORTSTHROUGH THE CHIPOTLECULTIVATE FOUNDATIONEMPLOYEE RESOURCEGROUPS AND ANOVERARCHINGCULTURE COMMITTEEOfferedEight 25,000 272,000INDUSTRY-LEADING2019 PeopleE s ta bl i s h ed20DebtFreeDegreesGROWTH-STAGE VENTURESACCELERATED VIACHIPOTLE ALUMINARIESPROJECT 1.0, INPARTNERSHIP WITHCHIPOTLE CULTIVATEFOUNDATIONLogged200 VolunteerhoursFourALL CHIPOTLEEMPLOYEES NOW HAVEACCESS TOfree &confi dent i a lEmpl oyeeA s s i s ta nceProg ra m (EA P)s erv i cesAchievedA HUMAN RIGHTSCAMPAIGNCORPORATEEQUALITY INDEXSCORE OF90%
Food & Animals I People I Environment2019 Sustainability Report UpdateAwards &RecognitionWe know we’re partial, but wethink our people are the bestin the industry.That’s why we make sure thatthey’re treated fairly and takencare of. Happily, others havetaken notice:Bloomberg2020 GenderEquality IndexOrange CountyRegisterTop Places to Workin Orange CountyForbesBest Employersfor Diversity 2020AwardComparablyBest Companiesfor WomenForbesAmerica’s BestEmployers by State2019 (#123 Florida)ComparablyBest Companiesfor CorporateCulture (#44)ForbesAmerica’s BestEmployers forDiversity 2019 (#456)ComparablyBest Companiesfor Diversity21
Food & Animals I People I Environment2019 Sustainability Report UpdatePEOPLEBenefitsPROGRESS UPDATEOur employees’ wellbeing is one of our main focuses. It’s important for usto find ways to enrich their lives and provide quality care they deserve.GOALS1Make our Employee AssistanceProgram (EAP) available to allemployees so they have accessto quality mental health care by2020.PROGRESSAll Chipotle employees nowhave access to free andconfidential EAP services.AccomplishedThis is just the beginning of howwe’re strategically investing in thewell-being of our employees and theirfamilies. Our vision for people is tocreate a culture where employees canthrive and pursue their passion andby extending access to all levels andenriching our Employee AssistanceProgram, we are ensuring that ouremployees can build mental fitnessand bring their best selves to workevery day.— Marissa Andrada,Chief People Officer22
Food & Animals I People I Environment2019 Sustainability Report UpdatePEOPLETraining & DevelopmentPROGRESS UPDATEThere’s no shortage of ways we can help take care of ouremployees. We’re continually looking to improve and expand thebenefits, resources, and programs we can offer our people tokeep them happy, healthy,
Apr 29, 2020 · target GOALS PROGRESS I I 2019 Sustainability Report Update 9 . our US market to our restaurants in Canada and Europe . FOOD & ANIMALS Chicken Welfare PROGRESS UPDATE . improved stocking density, and controlled atmospheric stun . Chipotle is committed to making responsibly raised meats a
