US Foods Announces Science-Based Climate Goal to Reduce Greenhouse Gas Emissions by 32.5 Percent by 2032

Rhea-AI Summary

US Foods Holding Corp. (NYSE: USFD) has submitted its greenhouse gas (GHG) emission reduction targets for approval to the Science Based Targets initiative. The company completed a comprehensive assessment of its Scope 3 emissions and aims to engage key suppliers, covering 71% of its emissions, to set science-based targets by 2027. US Foods plans a 32.5% reduction in absolute Scope 1 and 2 GHG emissions by 2032, based on 2019 levels. The company also commits to adding 30 electric vehicle trucks by 2023 and investing in renewable energy sources.

Positive

• Submission of GHG emission reduction targets supports commitment to sustainability.
• Plans to reduce absolute Scope 1 and 2 GHG emissions by 32.5% by 2032.
• Intends to engage suppliers covering 71% of emissions to set science-based targets by 2027.
• Investment in alternative fuels and electric vehicle fleet expansion enhances operational sustainability.

Negative

• None.

Company has also completed its first comprehensive assessment of Scope 3 emissions and intends to engage key suppliers to set science-based emissions targets by 2027

ROSEMONT, Ill.--(BUSINESS WIRE)-- US Foods Holding Corp. (NYSE: USFD) announced today that it has submitted formal greenhouse gas (GHG) emission reduction targets to the Science Based Targets initiative (SBTi) for approval. The company has also completed its first comprehensive screening of its Scope 3 emissions and intends to submit a goal to engage key suppliers covering 71 percent of its emissions from purchased goods and services to set science-based targets by 2027. The submission supports the company’s ongoing commitment to reducing the environmental footprint of its operations.

US Foods commits to and is pursuing SBTi validation for the following goals:

• US Foods will reduce absolute Scope 1 and 2 GHG emissions by 32.5 percent by 2032 from a 2019 base year.
• US Foods commits that 35 percent of its suppliers by emissions, covering 71 percent of purchased goods and services, will have science-based targets by 2027.

The company will continue to reduce emissions by optimizing routing to reduce miles driven, deploying new vehicle technology and investing in alternative fuels such as compressed natural gas, renewable natural gas and renewable diesel fuel. The company will add 30 electric vehicle (EV) trucks by 2023 and continue to expand its EV fleet to reduce its Scope 1 emissions. Additionally, the company will continue to optimize the efficiency of its building operations by investing in renewable energy such as solar array installations and accelerating its adoption of energy-efficient equipment and technologies.

In support of Scope 3 commitments, US Foods has completed a comprehensive screening of its Scope 3 emissions. As the majority of the company’s total greenhouse gas emissions are Scope 3 emissions produced within the company’s value chain, the company has committed to engaging with its suppliers to ensure that key suppliers who contribute to the company’s Scope 3 emissions set science-based targets by 2027. US Foods will focus on engaging suppliers of its purchased goods and services, which comprise more than 95 percent of the company’s Scope 3 emissions and will collaborate with suppliers to develop meaningful supply chain interventions to support suppliers in their climate action journeys.

“These ongoing investments are a testament to our dedication to reducing our organization’s environmental footprint,” said Kristin Coleman, executive vice president, general counsel and leader of CSR at US Foods. “The expansion of our facility and fleet efficiency initiatives are a critical part of US Foods’ long-range sustainability plans to drive end-to-end change.”

In addition to further outlining the company's progress against strategies to reduce its environmental footprint, the company’s 2021 Corporate Social Responsibility Report highlights progress against its strategies for growing its portfolio of sustainable products and making a positive difference in the lives of its associates and communities, including:

Products:

• Growing the number of products across its local, sustainable and well-being offerings, with a total of more than 2,300 Exclusive Brand products available today.
• Upholding the company’s responsibly sourced seafood commitment.
• Adhering to the company’s Palm Oil Policy commitment to source 100 percent of the palm or palm kernel oil used in US Foods Exclusive Brand products through certified sustainable sources.

People:

• Awarded more than $1M in US Foods Scholars program scholarships to more than 50 students since 2017.
• Donated more than $20M in food and supplies to U.S. food banks across the country.
• Enhanced diversity and inclusion commitments by signing the CEO Action for Diversity and Inclusion pledge, expanding the Employee Resource Group program, and increased the company’s workforce and leadership diversity through development programs and improved hiring strategies by filling 39 percent new or open leadership roles by women or people of color.

To learn more about the company’s CSR commitments, visit the company’s website at usfoods.com/csr.

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 80 cash and carry stores, US Foods and its 28,000 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.

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 are based on various assumptions and expected future developments. However, you should understand that these statements are not guarantees of performance 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, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 1, 2022, which was filed with the Securities and Exchange Commission (“SEC”) on February 17, 2022. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220706005298/en/

Sara Matheu

773-580-3775

Sara.Matheu@usfoods.com

Source: US Foods

FAQ

What are US Foods' GHG emission reduction targets?

US Foods plans to reduce absolute Scope 1 and 2 GHG emissions by 32.5% by 2032 and engage suppliers for Scope 3 emissions reduction.

What is the goal for US Foods' suppliers regarding emissions?

US Foods aims for 35% of its suppliers by emissions, covering 71% of purchased goods and services, to set science-based targets by 2027.

How many electric vehicles will US Foods add by 2023?

US Foods plans to add 30 electric vehicle trucks by 2023 as part of its sustainability initiatives.

Where is US Foods headquartered?

US Foods is headquartered in Rosemont, Illinois.