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Chipotle Ties Environmental, Social Goals to Executive Compensation

Specialty Food Association

Chipotle Mexican Grill will tie its 2022 environmental, social, and governance goals to executive compensation. 

The objectives, which are categorized by food and animals, people, and the environment, can positively or negatively impact the officers' 2022 annual incentive bonus by up to 15 percent 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 and food safety officer for Chipotle, in a statement. "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." 

In 2022, Chipotle plans to increase diversity within its internal pipeline of candidates for all promotions into salaried restaurant support center and field management positions, such as field leaders, team directors, and regional vice presidents.

In addition, the company aims to increase diversity above its current 60 percent rate within its internal pipeline of candidates for all promotions into these positions. Last year, 90 percent of restaurant management roles were internal promotions.

Chipotle also will strive 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.

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.

As for its environmental impact, in 2022, Chipotle aims to reduce its Scope 1 and 2 greenhouse gas emissions by at least 5 percent. Last year, the company announced its broader science-based targets created in alignment with the Science Based Targets initiative to reduce absolute Scope 1, 2, and 3 GHG emissions by 50 percent by 2030, from a 2019 base year. 

Related: Chipotle Aims to Reduce 50 Percent of Carbon Emissions by 2030Bob's Red Mill's Hires Focus on Diversity, Sustainability.

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