Chipotle to Tie Executive Compensation to Sustainable Goals
A Brief Summary
Chipotle Mexican Grill recently announced to tie its 2022 sustainable goals to executive pay. The goals set by the company include targets to reduce emissions, enhance workforce diversity and increase sustainable food sourcing.
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The company has categorized the objectives by food & animals, people, and the environment that can positively or negatively impact executives' 2022 annual incentive bonus by up to 15 per cent.
Laurie Schalow, Chief Corporate Affairs & Food Safety Officer, Chipotle, said: “Chipotle’s ESG goals are designed to motivate our executive leadership team to make responsible business decisions that Cultivate A Better World. As a company with over 3,000 restaurants and nearly 100,000 employees, we have a responsibility to transparently share our progress and drive positive change.”
Chipotle, in 2022, will enhance its workforce diversity within its internal pipeline of candidates for promotions into salaried restaurant support centre positions and field management positions above its current 60 per cent rate. In 2021, 90 per cent of restaurant management roles were internal promotions.
The company also has plans to buy at least 57 million pounds of organic or locally grown ingredients this year, up from 55 million pounds it bought last year.
Chipotle always remains a supporter of farmers. The company supports the National Young Farmers Coalition and its movement advocating a policy change in the 2023 Farm Bill facilitating access to up to one million acres of land for the coming generation of farmers.
The environmental goals set by the company will include reducing its Scope 1 and 2 emissions by at least 5 per cent. The company, last year, announced its science-based targets created in alignment with the Science Based Targets initiative to scale down Scope 1, 2 and 3 Greenhouse gas by 50 per cent by 2030.