Chipotle Mexican Grill announced today its Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More goals for 2022 that will impact executive compensation, including targets to reduce emissions, increase workforce diversity and increase sustainable food sourcing.
The release of the 2022 goals follows the introduction las year by Chipotle of a metric tying executive compensation to ESG goals, which the company categorizes by Food & Animals, People, and the Environment. Performance towards achieving the goals can positively or negatively impact 2022 annual incentive bonus by up to 15%.
The goals for the current year include purchasing at least 57 million pounds of organic, transitional and/or locally grown ingredients, up from 55 million pounds last year, increase diversity within the company’s internal pipeline within its internal pipeline of candidates for promotions into salaried restaurant support center positions and field management positions above its current 60% rate, and reducing Scope 1 and 2 greenhouse gas (GHG) emissions by at least 5%, in line with Chipotle’s recently announced science-based climate goals.
Laurie Schalow, Chief Corporate Affairs & Food Safety Officer, Chipotle, said:
“Chipotle’s Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More 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.”
The post Chipotle Ties 2022 Executive Pay to Emissions, Diversity, Sustainable Food Goals appeared first on ESG Today.