US Foods 2023 Sustainability Report Highlights Positive Progress Across Sustainability Commitments

Rhea-AI Summary

US Foods has released its 2023 Sustainability Report, detailing progress across three strategic areas: Products, People, and Planet. The company has expanded its range of sustainable products, now offering over 4,200 differentiated products. It introduced the US Foods Serve You™ and Climate-Conscious categories to emphasize well-being and environmental benefits. The company also enhanced workplace diversity, exceeding its 2023 goals, and boosted spending with diverse suppliers by 13% and small businesses by 44% since 2020. Environmental initiatives resulted in a 6% reduction in Scope 1 and 2 emissions since 2019 and the deployment of 100 alternative fuel vehicles. US Foods continues to advance its sustainability efforts by collaborating with stakeholders.

Positive

• Expanded sustainable product offerings to over 4,200 items.
• Introduced US Foods Serve You™ and Climate-Conscious product categories.
• Increased workforce diversity by filling 51% of leadership roles with diverse candidates.
• Spent $742 million with over 600 certified diverse suppliers.
• Increased spending with small businesses by 44% since 2020.
• Donated over $12 million in products and supplies to food banks.
• Reduced Scope 1 and 2 emissions by 6% since 2019.
• Deployed around 100 alternative fuel vehicles.

Negative

• No specific financial metrics provided on the impact of sustainability investments.
• Reduction in emissions is relatively modest at 6% since 2019.
• Introduction of new product categories could incur higher costs.
• Potential operational risks associated with the three-year deforestation and land conversion project.

Report Details Momentum Across the Company’s Three Strategic Focus Areas: Products, People and Planet

ROSEMONT, Ill.--(BUSINESS WIRE)-- US Foods Holding Corp. (NYSE: USFD) – one of America’s leading foodservice distributors – announced today the release of the company’s 2023 Sustainability Report. Within the comprehensive report, US Foods highlights progress across its sustainable product offerings, support for associates and communities, and initiatives to reduce the environmental impact of its operations.

US Foods 2023 Sustainability Report Cover Image (Photo: Business Wire)

“We are committed to being a responsible company that is both environmentally and socially conscious,” said Martha Ha, executive vice president, general counsel and sustainability lead, US Foods. “I am proud of the meaningful progress the company has made throughout 2023 against our three strategic sustainability focus areas: innovating and differentiating our products; creating a safe, diverse and inclusive workplace and supporting our communities; and improving the efficiency of our fleet and facilities. Looking forward, we are well positioned to advance our sustainability efforts as we continue to collaborate with our customers, suppliers and other stakeholders.”

The report shares progress highlights for each of the company’s key sustainability focus areas: Products, People and Planet.

Products: Growing our portfolio of products that meet our criteria for being local, sustainable or supporting well-being by working with our suppliers to source and offer products with social or environmental benefits, as well as maintaining our continued commitment to food safety and quality.

• Maintained year-over-year growth of the company’s local, sustainable and well-being product offerings, with more than 4,200 differentiated products available today.
• Introduced US Foods Serve You^™, the company’s Exclusive Brand product portfolio of more than 3,300 well-being products that are plant-based¹ alternatives, vegan², vegetarian³, contain no ingredients from the US Foods Unpronounceables List®⁴ or gluten-free certified.
• Introduced new US Foods Serve Good® product category, Climate-Conscious, which includes products that are consciously produced and/or manufactured to help reduce greenhouse gas (GHG) emissions.

People: Making a positive difference in the lives of our associates and in the communities we serve by fostering an inclusive, dynamic and safe workplace where our associates can grow and thrive, and by investing in our communities through giving and volunteerism.

• Enhanced diversity and inclusion commitments by growing participation in the company’s 10 Employee Resource Group programs, which now include more than 3,400 members, a 53% increase in membership since 2022.
• Increased the company’s workforce and leadership diversity by filling 51% of new or open leadership roles with diverse candidates, exceeding the 2023 goal.
• Spent more than $742 million with more than 600 certified diverse suppliers and more than $2.6 billion with over 2,600 small businesses across the U.S., an increase of more than 13% in spend with diverse suppliers and more than 44% in spend with small businesses since 2020.⁵
• Donated more than $12 million in products, supplies and monetary contributions to food banks across the country.

Planet: Engaging to improve the efficiency of the company’s facilities and fleet in order to help reduce the environmental footprint of our operations.

• Reduced Scope 1 and Scope 2 emissions by 6% since 2019 in support of the company’s formal goal to reduce absolute Scope 1 and 2 GHG emissions 32.5% by 2032 from a 2019 base year.
• Completed delivery of approximately 100 alternative fuel vehicles including electric trucks, electric yard tractors and compressed natural gas trucks.
• Launched three-year deforestation and land conversion project to help mitigate risk of deforestation and land conversion in the supply chain.

The 2023 Sustainability Report uses recognized reporting standards, including Sustainability Accounting Standards Board’s (SASB) Food Retailers & Distributors the Task Force on Climate-related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI).

To view the US Foods 2023 Sustainability Report, visit the company’s website at usfoods.com/sustainability.

¹Made with ingredients derived from plants, fungi and algae: no animal-derived ingredients. Reasonable efforts to avoid cross-contact with animal-based ingredients.
²No ingredients of animal origin. Reasonable efforts to avoid cross-contact with animal-based ingredients.
³Milk, eggs, honey and beeswax permitted; no other ingredients of animal origin. Reasonable efforts to avoid cross contact with other animal-based ingredients.
⁴Processing aids and potential cross-contact during production are not in scope for this program.
⁵ Figures include trade and indirect spend with Tier 1 suppliers.

Forward-Looking Statements

Statements in this press release which are not historical in nature, are “forward-looking statements” within the meaning of the federal securities laws. These statements often include words such as “believe,” “expect,” “project,” “anticipate,” “intend,” “plan,” “outlook,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecast,” “mission,” “strive,” “more,” “goal,” or similar expressions (although not all forward-looking statements may contain such words) and are based upon various assumptions and our experience in the industry, as well as historical trends, current conditions, and expected future developments. However, you should understand that these statements are not guarantees of performance or results and there are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those expressed in the forward-looking statements. For a detailed discussion of these risks, uncertainties and other factors that could cause our results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”) on February 17, 2023. Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC’s website at www.sec.gov and the Company’s investor relations page at www.ir.usfoods.com. Additionally, we operate in a highly competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible to predict all risks nor identify all uncertainties. The forward-looking statements contained in this press release speak only as of the date of this press release and are based on information and estimates available to us at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law.

About US Foods

With a promise to help its customers Make It, US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 250,000 restaurants and foodservice operators to help their businesses succeed. With 70 broadline locations and more than 90 cash and carry stores, US Foods and its 30,000 associates provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in Rosemont, Ill. Visit www.usfoods.com to learn more.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240529317964/en/

Media Contact:

Sara Matheu

773-580-3775

Sara.Matheu@usfoods.com

Source: US Foods

FAQ

What are the key highlights of the US Foods 2023 Sustainability Report?

The report highlights over 4,200 sustainable products, enhanced workforce diversity, increased spending with diverse suppliers and small businesses, $12 million in donations, and a 6% reduction in emissions.

How many sustainable products does US Foods offer as of 2023?

US Foods offers over 4,200 sustainable products as of 2023.

What new product categories did US Foods introduce in 2023?

US Foods introduced the US Foods Serve You™ and Climate-Conscious product categories in 2023.

How has US Foods improved workplace diversity in 2023?

US Foods filled 51% of new or open leadership roles with diverse candidates and increased participation in its Employee Resource Group programs by 53%.

What environmental initiatives has US Foods undertaken?

US Foods reduced Scope 1 and 2 emissions by 6% since 2019 and deployed around 100 alternative fuel vehicles.

How much has US Foods spent with diverse suppliers and small businesses?

US Foods spent $742 million with over 600 certified diverse suppliers and $2.6 billion with small businesses.