Aramark Publishes Annual Update on Responsible Business Practices in the 2023 Be Well. Do Well. Progress Report

Rhea-AI Summary

Aramark (NYSE: ARMK) published its 2023 Be Well. Do Well. Progress Report, highlighting its global responsible business practices and performance, including ESG efforts, diversity, equity, and inclusion commitments, community building, climate, food and worker safety, responsible sourcing, and waste reduction programs. The report also features Aramark's progress in reducing greenhouse gas emissions, supporting local communities, embedding circularity, empowering healthy consumers, engaging employees, and ethically sourcing from local, small, and diverse businesses.

Insights

Sustainability Expert

An analysis of Aramark's 2023 Be Well. Do Well. Progress Report reveals a strategic emphasis on sustainability and corporate responsibility, which can be a significant differentiator in the competitive food and facilities services industry. The report's focus on ESG efforts, particularly the SBTi validation of greenhouse gas emissions reduction targets, signals to investors and stakeholders a commitment to long-term value through sustainable practices. This commitment is not only ethically commendable but also aligns with a growing trend of investor interest in companies with strong ESG frameworks.

The introduction of a five-year strategy to reduce reliance on single-use plastics demonstrates a proactive approach to environmental stewardship and could potentially reduce long-term costs associated with waste management. Moreover, the increase in vegan, vegetarian, or plant-forward offerings reflects a response to changing consumer preferences, which can drive growth in market segments that prioritize health and sustainability.

From a business perspective, the reported increase in spend with local, small and diverse businesses may enhance Aramark's brand image and foster community relations, potentially leading to increased customer loyalty and market share. These initiatives are indicative of a company leveraging responsible practices as a core aspect of its growth strategy.

Diversity & Inclusion Consultant

The progress in diversity, equity and inclusion (DEI) within Aramark's management structure, as indicated by the increased percentages of female and people of color in managerial positions, is a positive trend that can enhance decision-making and innovation through diverse perspectives. The growth in employee resource group membership suggests a strengthening internal community that can contribute to employee satisfaction and retention, which are critical factors in the service industry known for high turnover rates.

DEI initiatives can have far-reaching implications beyond the immediate social impact, including strengthening the employer brand and attracting talent in a competitive labor market. Companies that actively promote and achieve diversity at all levels are increasingly seen as employers of choice, which can be a significant advantage in recruiting and retaining top talent.

However, it is essential to monitor the effectiveness of these DEI initiatives in driving meaningful change and to ensure that they are not just quantitative improvements but also translate into qualitative enhancements in company culture and operational performance.

Financial Analyst

The financial implications of Aramark's responsible business practices, as detailed in the progress report, should be evaluated in terms of both cost efficiencies and potential revenue growth. The investment in local and diverse businesses, coupled with a 60% increase in spending with local farms and producers, may indicate a strategic shift towards more resilient and potentially cost-effective supply chains. This localization of supply can mitigate risks associated with global procurement, such as tariffs and supply disruptions and may result in more predictable and potentially lower costs over time.

Furthermore, the emphasis on ESG, DEI and community engagement can resonate with institutional investors and funds that prioritize responsible investment criteria, potentially leading to a more favorable investment profile. Nevertheless, it is crucial to balance these initiatives with the need to maintain competitive pricing and operational efficiency, as the food and facilities services industry operates on thin margins and is sensitive to cost increases.

While the report presents a positive outlook on the company's responsible business practices, investors should consider the potential impact of these strategies on the company's financial health and competitive positioning in the long term, including the possibility of increased operational costs and the need for ongoing investment in sustainability and DEI programs.

PHILADELPHIA--(BUSINESS WIRE)-- Aramark (NYSE: ARMK), a leading global provider of food and facilities services, with operations spanning the education, healthcare, business and industry, sports, leisure, and corrections sectors, today published the 2023 Be Well. Do Well. Progress Report, which provides updates on its global responsible business practices and performance. In the report, Aramark shares progress on its environmental, social, and governance (ESG) efforts, including diversity, equity, and inclusion (DEI) commitments, and community building, climate, food and worker safety, responsible sourcing, and waste reduction programs, among other topics.

Aramark provided updates on its global responsible business practices and performance in the 2023 Be Well. Do Well. Progress Report published today. (Photo: Business Wire)

Introduced in 2019, Be Well. Do Well. articulates Aramark’s purpose and directly connects to the company’s mission: Because we’re rooted in service, we do great things for our people, our partners, our communities, and our planet. The platform’s interconnected people and planet goals focus Aramark’s efforts and inspire its organization, strengthening the company’s core foundation and long-term value proposition.

“Aramark is a company committed to a culture of hospitality. It’s how we support our people, our communities, and the planet,” said John Zillmer, Aramark CEO. “We have made some significant commitments in these areas, and the annual Be Well. Do Well. Progress Report provides a comprehensive view of our ongoing efforts. I’m proud of what we’ve accomplished so far and of who we are as a company, as a responsible business, as a partner, and as a neighbor.”

In July 2023, Aramark achieved a key milestone in its efforts to reduce greenhouse gas emissions by securing SBTi validation of its global near-term and net-zero enterprise-wide science-based targets. Other highlights from 2023 include:

• Building local communities – supported more than one million students, families, and individuals globally. Support includes, but is not limited to, serving a meal, providing a meal, snack, toiletry, or other kit, giving a backpack or collection of school supplies, facilitating nutrition education, funding scholarships, creating educational or employment readiness opportunities, leading workshops, or demonstrations.
• Embedding circularity – launched a new five-year strategy to eliminate, or substantially reduce, reliance on single-use plastics and other disposables across its operations.
• Empowering healthy consumers – increased the percentage of vegan, vegetarian, or plant-forward¹ main dishes and sides offered in U.S. Workplace Experience Group, Collegiate Hospitality, and Healthcare+ to 39% (up 1% from 2022).
• Engaging employees – increased the percentage of U.S. managers and/or salaried employees who are female to 46% (up 3% from 2022) and who are people of color to 33% (up 2% from 2022). New membership in employee resource groups grew more than 20% from 2022.
• Sourcing ethically and inclusively – increased spend with local, small, and diverse businesses in the U.S. by 18%. This includes $157 million spent with local farms and producers, a 60% increase from 2022.

To learn more about Aramark’s responsible business practices and progress from last year, please read the 2023 Be Well. Do Well. Progress Report at https://www.aramark.com/environmental-social-governance.

About Aramark
Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 15 countries around the world with food and facilities management. Because of our hospitality culture, our employees strive to do great things for each other, our partners, our communities, and the planet. Aramark has been recognized on FORTUNE’s list of “World’s Most Admired Companies,” Fair360’s “Top 50 Companies for Diversity” and “Top Companies for Supplier Diversity,” Newsweek’s list of “America’s Most Responsible Companies 2024,” the HRC’s “Best Places to Work for LGBTQ Equality,” and earned a score of 100 on the Disability Equality Index. Learn more at www.aramark.com and connect with us on LinkedIn, Facebook, X, and Instagram.

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¹ Plant-forward is a style of cooking and eating that emphasizes fruits, vegetables, and whole grains but may contain a small amount of animal protein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130995835/en/

Erin Noss

(215) 409-7403

noss-erin@aramark.com

Source: Aramark

FAQ

What is the ticker symbol for Aramark?

The ticker symbol for Aramark is ARMK and it is listed on the NYSE.

What does the 2023 Be Well. Do Well. Progress Report highlight?

The 2023 Be Well. Do Well. Progress Report highlights Aramark's global responsible business practices and performance, including ESG efforts, diversity, equity, and inclusion commitments, community building, climate, food and worker safety, responsible sourcing, and waste reduction programs.

What are some of the achievements mentioned in the report?

The report mentions achievements such as reducing greenhouse gas emissions, supporting local communities, embedding circularity, empowering healthy consumers, engaging employees, and ethically sourcing from local, small, and diverse businesses.

What is the CEO's statement about the company's commitments?

Aramark CEO, John Zillmer, expressed pride in the company's commitments to a culture of hospitality, supporting people, communities, and the planet, and the comprehensive view provided by the annual Be Well. Do Well. Progress Report.