CHIPOTLE ANNOUNCES 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE GOALS TIED TO EXECUTIVE COMPENSATION

Rhea-AI Summary

Chipotle Mexican Grill (NYSE: CMG) announced its 2022 Environmental, Social, and Governance (ESG) goals linked to executive compensation. Targets include increasing the purchase of organic and locally grown ingredients to at least 57 million pounds, up from 55 million in 2021. The company aims for a 5% reduction in Scope 1 and 2 greenhouse gas emissions. Additionally, Chipotle plans to enhance diversity in promotions, maintaining a 60% diversity rate in its internal candidate pipeline. Executive bonuses will be affected by achieving these ESG targets, signifying a commitment to responsible business practices.

Positive

• Increasing purchase of organic and locally grown ingredients to 57 million pounds, up from 55 million.
• Aiming for a 5% reduction in Scope 1 and 2 greenhouse gas emissions.
• Plans to enhance diversity within internal promotions, maintaining a 60% rate.

Negative

• External crop factors exclude rice and beans from organic growth goals.

NEWPORT BEACH, Calif., Feb. 23, 2022 /PRNewswire/ -- Chipotle Mexican Grill (NYSE: CMG) today announced 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% 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," said Laurie Schalow, Chief Corporate Affairs & Food Safety Officer, Chipotle. "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." 

Food & Animals
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.

A longstanding proponent of farmers, Chipotle is 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 one million acres of land for the next generation of farmers.

To join the campaign and impact the 2023 Farm Bill, guests can visit: Chipotle.com/Farmers. Adding your name will help the National Young Farmers Coalition advocate for Congress to invest $2.5 billion toward securing access to up to one million acres for young farmers. 

People
Employee development has always been a priority at Chipotle. 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% 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% of restaurant management roles were internal promotions.

Environment
In 2022, Chipotle intends to reduce its Scope 1 and 2 greenhouse gas (GHG) emissions by at least 5%. 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% 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.

ABOUT CHIPOTLE
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. Chipotle had over 2,950 restaurants as of December 31, 2021, in the United States, Canada, the United Kingdom, France and Germany and is the only restaurant company of its size that owns and operates all its restaurants. Chipotle is ranked on the Fortune 500 and is recognized on the 2021 lists for Forbes' America's Best Employers and Fortune's Most Admired Companies. With nearly 100,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM.

 

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SOURCE Chipotle Mexican Grill, Inc.

FAQ

What are Chipotle's ESG goals for 2022?

Chipotle's ESG goals for 2022 include increasing organic ingredient purchases to at least 57 million pounds and a 5% reduction in greenhouse gas emissions.

How will Chipotle's executive compensation be affected in 2022?

Executive compensation can be impacted by up to 15% based on the achievement of the 2022 ESG goals.

What is Chipotle's diversity goal for 2022?

In 2022, Chipotle aims to increase diversity in its internal pipeline for promotions above its current 60% rate.

What are Chipotle's targets for greenhouse gas emissions?

Chipotle targets a 5% reduction in Scope 1 and 2 greenhouse gas emissions and aims to reduce overall emissions by 50% by 2030.

What was the organic ingredient goal set by Chipotle for 2021?

Chipotle purchased 55 million pounds of organic, transitional, and locally grown ingredients in 2021.