Chipotle Ties Executive Pay to Circular Economy, Diversity, Local Food Sourcing Goals

Chipotle Mexican Grill announced today the 2023 ESGEnvironmental, 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 that will be linked to executive incentive compensation, including targets to use more locally-sourced produce, improve diversity and reduce waste to landfills.

The release of the 2022 goals follows the introduction in 2021 by Chipotle of a metric tying executive compensation to ESGEnvironmental, 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, according to categories including Food & Animals, People, and the Environment. Performance towards achieving the goals can positively or negatively impact 2023 annual incentive bonus by up to 15%.

The goals for 2023 include purchasing at least 37.5 million pounds of local produce, up from 36.4 million pounds the prior year, improving the retention rate for diverse employees in restaurant support center and field operations positions, and increasing the number of its restaurants participate in composting programs by 23%, from approximately 1,000 currently – supporting the company’s broader goal to increase its diversion rate and reducing waste to landfills by 5% by 2025.

Chipotle revealed that it surpassed the goals set for last year’s incentive program, which included purchasing at least 57 million pounds of organic, transitional and/or locally grown ingredients (58.3 million pounds achieved), increasing 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 60% (63.6% achieved), and reducing Scope 1 and 2 greenhouse gas (GHG) emissions by at least 5% (13% reduction achieved).

Laurie Schalow, Chief Corporate Affairs at Chipotle, said:

“Chipotle’s ESGEnvironmental, 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 a direct reflection of our commitment to inspire real, sustainable change with a potential impact far beyond this Company. 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.”

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