Chipotle to Tie ESG Goals to Executive Compensation

    Industry News | February 23, 2022
    Chipotle employees.
    Chipotle
    Chipotle aims to increase diversity above its current 60 percent rate within its internal pipeline of candidates for all promotions into these positions.

    Chipotle Mexican Grill announced on Wednesday its 2022 Environmental, Social and Governance (ESG) goals tied to executive compensation. The objectives, which are categorized by Food & Animals, People, and the Environment, can positively or negatively impact the officers' 2022 annual incentive bonus by up to 15 percent based on the company's achievement of these goals.

    "Chipotle's ESG goals are designed to motivate our executive leadership team to make responsible business decisions that Cultivate A Better World," says Laurie Schalow, chief corporate affairs and food safety officer. "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 is committed to increasing pounds of organic, local, and/or regeneratively grown and raised food used in its restaurants year over year. In 2022, Chipotle aims to purchase at least 57 million pounds of organic, transitional and/or locally grown ingredients, up from the 55 million pounds it purchased in 2021. Rice and beans are excluded from this goal due to external crop factors.

    READ MORE: Chipotle is Headed to a Small Town Near You

    Chipotle is also supporting the National Young Farmers Coalition and its movement to advocate for policy change in the 2023 Farm Bill that would facilitate equitable access to up to a million acres of land for the next generation of farmers.

    In 2022, Chipotle plans to increase diversity within its internal pipeline of candidates for all promotions into salaried restaurant support center positions and Field management positions such as Field Leaders, Team Directors and Regional Vice Presidents. The company aims to increase diversity above its current 60 percent rate within its internal pipeline of candidates for all promotions into these positions.

    In 2021, Chipotle achieved its goals of maintaining racial and gender pay equity as well as implementing a program to accelerate the development of diverse team members. Chipotle completed a pay equity analysis, conducted by an independent third party, as well as implemented a robust crew pay strategy to ensure consistent and equitable pay decisions across the entire organization. It also launched a Leadership Evolution and Development (LEAD) program in October, designed to create additional capabilities among those identified as having future potential to succeed in more senior or critical roles. Last year, 90 percent of restaurant management roles were internal promotions.

    In 2022, Chipotle intends to reduce its Scope 1 and 2 greenhouse gas (GHG) emissions by at least 5 percent. Last year, the company announced its broader science-based targets created in alignment with the Science Based Targets initiative (SBTi) to reduce absolute Scope 1, 2 and 3 GHG emissions by 50 percent by 2030 from a 2019 base year. The approved targets are classified by SBTi as being in line with a long-term global temperature increasing trajectory of 1.5°C. Chipotle's 2021 Scope 1, 2 and 3 GHG emissions will be announced in the company's Sustainability Report update this spring.

    News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.