CINCINNATI, Aug. 25, 2021 /PRNewswire/ -- The Kroger Co.
(NYSE: KR) today released its 2021 Environmental, Social and
Governance (ESG) report, sharing its new long-term ESG strategy and
framework to benefit people and the planet, and to help create a
more resilient, equitable food system for tomorrow.
"As a grocery retailer, Kroger is committed to advancing
positive impacts for people and our planet and to creating more
resilient global systems," said Rodney
McMullen, Kroger's chairman and CEO. "Even throughout a
difficult year, our team continued to make progress on our goals
while still playing a key role in providing fresh food and
essential goods to our communities. Through our Zero Hunger | Zero
Waste social and environmental impact plan—the centerpiece of our
ESG strategy—we continue to break down barriers to food access and
capture the full value of food produced across the U.S. food system
especially for those struggling with hunger amid an ongoing public
health crisis."
The 2021 report features the company's ESG strategy, which
encompasses topics and long-term targets in three pillars: People
(Social), Planet (Environmental), and Systems (Governance). It
expresses Kroger's aspiration to further integrate ESG performance
into lines of business and to continue developing a shared-value
framework that unlocks economic opportunity for all
stakeholders.
"Our strategic approach to ESG priorities is rooted in creating
business value and uplifting our associates, customers, and
communities," said Keith Dailey,
Kroger's group vice president of corporate affairs and chief
sustainability officer. "We are acutely focused on how we will
further advance our purpose to feed the human spirit as a leading
retailer, employer, and community partner."
2020 Achievements
People: Help billions live healthier, more
sustainable lifestyles
- Directed a total of $301 million
in food and funds to communities, including nearly $213 million to hunger relief during a
challenging year.
- Directed nearly $33 million in
combined Foundation grants to communities, a 60% increase in
grant-making versus the prior year.
- Directed a record one-year total of 641 million meals to
communities in food and funds in 2020, including 90 million pounds
of food donated through Kroger's Zero Hunger | Zero Waste Food
Rescue program. Since introducing Zero Hunger | Zero Waste four
years ago, the company has directed a total of 1.8 billion meals to
communities toward its goal of a combined 3 billion meals by
2025.
- Invested more than $2.5 billion
to support associates during the peak of the pandemic, including
$1 billion to better secure pensions
for over 30,000 associates.
- Increased average wage for hourly store associates to
$15.50, bringing rate to more than
$20 per hour when comprehensive
benefits are included.
- Administered COVID-19 vaccines to millions of Americans by
Kroger Health pharmacists, nurse practitioners and clinicians.
- Created Kroger's Framework for Action: Diversity, Equity
& Inclusion plan, featuring both immediate and longer-term
steps developed in collaboration with associates and leaders to
accelerate and promote greater change in the workplace and in the
communities Kroger serves.
Planet: Protect and restore natural resources for a
brighter future
- Decreased total carbon emissions by 11.6%. The company's
normalized emissions (per 1,000 square feet) also declined in 2020,
from 25.8 to 22.59. Reductions in stationary fuel and electricity
consumption were at least partially driven by pandemic-related
changes.
- Reduced total food waste generated in retail stores by 7.2%,
while the percentage of food waste diverted from landfill improved
by 3.5% percentage points to 48.3%.
- Achieved a company-wide waste diversion rate of 81% in 2020, a
1% improvement from 2019.
- Joined the Consortium to Reinvent the Retail Bag as the Grocery
Sector Lead.
- Launched a new recycling program in partnership with
TerraCycle. This solution allows customers to send
harder-to-recycle flexible plastic packaging for popular Simple
Truth® items to TerraCycle for safe and effective recycling. In
2021, Kroger and TerraCycle expanded the program to include
flexible plastic packaging from all Our Brands
products.
- Sourced 58.9 million pounds of Fair Trade Certified™
ingredients for Our Brands products, nearly doubling the
volume of ingredients in 2019.
- Achieved a 10% decrease in total water consumed between 2019
and 2020.
- Postponed the Zero Hunger | Zero Waste Foundation's second
Innovation Fund open call and instead directed a total of
$400,000 in new grants to members of
the first group of portfolio companies able to continue operating
during the pandemic. This funding was in addition to the
$1 million cohort members received
collectively the prior year. The Innovation Fund held an open call
for the second cohort in the first half of 2021.
Systems: Build more responsible and inclusive
global systems
- Spent $4.1 billion with diverse
suppliers, a 21% increase versus the previous year and fourth
consecutive year of double-digit growth.
- Sourced 86% of wild-caught seafood and 98% of farm-raised
seafood in Kroger's seafood department from fisheries and farms
meeting company's seafood sustainability requirements.
- Joined the Global Coalition for Animal Welfare, which convenes
food retailers, foodservice providers, producers and animal welfare
experts to improve standards at scale to meet consumer demand for
food from animals reared in systems that promote good welfare.
- Crafted a series of updated policies and statements to help
guide decisions related to company's operations and global supply
chain, including Statement on Human Rights, Seafood Sustainability
Policy, Animal Welfare Policy and Safer Chemicals Statement.
"Reflecting on the past year, and despite the challenges of
COVID-19, we are pleased to have made significant progress on our
2020 sustainability goals, and in some instances, exceeded our
objectives," continued Dailey. "We are now focused on what lies
ahead and progressing our ESG work through the next decade."
Looking Ahead
Going forward, Kroger is focused on achieving the following
long-term targets, among others, as part of its comprehensive ESG
Strategy: Thriving Together.
People: Help billions live healthier, more
sustainable lifestyles
- Direct a cumulative 3 billion meals to communities by
2025.
- Increase retail donations of fresh produce, deli and dairy
items to be 45% of total surplus food rescue.
- Advance Food as Medicine strategy by achieving a 20%
improvement in the five social determinants of health by 2025.
- Increase retail hourly wages sustainably.
- Engage diverse stakeholders to co-create more just and
equitable communities.
Planet: Protect and restore natural resources for a
brighter future
- Accomplish 30% cumulative reduction in greenhouse gas emissions
by 2030 (baseline: 2018); set a Scope 3 emissions target.
- Achieve zero waste company-wide and zero retail food waste to
landfills by 2025.
- Incorporate more sustainable packaging, including: 100%
recyclable, compostable and/or reusable Our Brands packaging
by 2030.
- Achieve no-deforestation commitment for Our Brands
products by 2030.
- Expand Our Brands' participation in the Sustainable
Coffee Challenge by committing Private Selection® to source 100%
Fair Trade Certified coffee from international growing regions by
mid-2022.
- Launch innovative reusable packaging platform as Loop's
exclusive U.S. grocery retail partner to advance company's
zero-waste vision by reducing single-use plastics in the
environment.
- Phase out single-use plastic grocery shopping bags by
2025.
Systems: Build more responsible and inclusive
global systems
- Respect human rights by aligning approach to the UN Guiding
Principles and human rights due diligence framework.
- Leverage supply chain network to align with ESG strategy for
greater collective impact.
- Increase spend with diverse suppliers to $10 billion annually by 2030.
To read Kroger's full 2021 ESG report, including 2020 outcomes
and forward-thinking goals, visit here. In addition to the
company's annual ESG report, you can also view new reports for The
Kroger Co. Foundation and The Kroger Co. Zero Hunger | Zero Waste
Foundation that highlight how the company continues to align
philanthropy to support its Zero Hunger | Zero Waste mission and
help advance positive change in communities.
About Kroger
At The Kroger Co. (NYSE: KR), we are Fresh for Everyone™ and
dedicated to our Purpose: To Feed the Human Spirit®. We are, across
our family of companies, nearly half a million associates who serve
over 11 million customers daily through a seamless shopping
experience under a variety of banner names. We are committed to
creating #ZeroHungerZeroWaste communities by 2025. To learn more
about us, visit our newsroom and investor relations site.
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SOURCE The Kroger Co.