Chipotle Ties Executive Pay to 2023 ESG Goals

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Chipotle Mexican Grill has unveiled its ESG targets for 2023, linked to executive pay.

Chipotle plans to increase local produce purchases to 37.5 million pounds. Enhance retention of diverse U.S.-based restaurant support and field operations workers. Increase composting programmes in 23% more restaurants to boost diversion rate and decrease landfill waste by 5% by 2025.

Chipotle's executives' 2023 annual incentive bonus could be positively or negatively impacted by up to 15% based on achieving or failing to achieve its 2023 ESG goals categorised by Food & Animals, People, and the Environment.

According to Laurie Schalow, Chief Corporate Affairs at Chipotle, the company's ESG goals demonstrate their dedication to driving genuine and enduring change, which can extend beyond the organisation. The company's leadership is responsible for implementing business strategies that contribute to Cultivating a Better World, and they are committed to openly sharing their progress towards achieving these targets.

Food & Animals

The company aims to increase the purchase of local produce, with a target of at least 37.5 million pounds in 2023, up from 36.4 million in 2022. The company also achieved its 2022 goal of purchasing over 57 million pounds of organic and locally grown ingredients, with exceptions for rice and beans due to external factors.


It aims to enhance its Diversity, Equity & Inclusion strategy by enhancing the retention rate of diverse employees in restaurant support centres and field operations roles. This aligns with their efforts to develop and retain a diverse workforce at all levels of the organisation.

The company aimed to improve diversity in its internal pipeline for promotions into salaried restaurant support centres and field management roles. Last year, it achieved 90% of all restaurant management roles through internal promotions, including 100% of US Regional Vice President (RVP) roles, 81% of Team Directors, and 74% of Field Leader positions. The company also exceeded its target of increasing diversity above the 60% rate within its internal pipeline of candidates for all promotions into these positions, achieving 63.6%.


Chipotle prioritises sustainability, with about 1,000 of its restaurants composting as of January 2023. The company aims to increase the number of participating restaurants by at least 23% this year to support its goal of increasing diversion rates and reducing waste by 5% by 2025. In 2022, Chipotle exceeded its greenhouse gas (GHG) emissions reduction goal, achieving a 13% reduction from 2019 levels.

Cultivate Next

Chipotle is using its new venture fund, Cultivate Next, to invest in early-stage companies that align with its ESG goals. One such investment is in LOCAL LINE, a local food sourcing platform that assists farms, producers, food hubs, and food buyers by digitising their operations and selling products. Through this investment, Chipotle aims to increase its local produce supply and help Local Line expand across the United States to provide local foods for its 3,200 restaurants.

Cultivate Next is also investing in ZERO ACRE FARMS, a food company focused on sustainable oils and fats that aims to reduce the food industry's dependence on vegetable oils, which contribute to deforestation and carbon emissions. Zero Acre Farms produces a new category of healthy oils and fats made by fermentation, which are more environmentally friendly.

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Source: Chipotle


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