Kroger announces 2021 ESG Report, looks ahead to future
The Kroger Co. recently released its 2021 Environmental, Social and Governance (ESG) Report, sharing its long-term vision for “a more resilient, equitable food system for tomorrow.” Kroger Co. operates several retail stores under banners such as Kroger, Ralph’s, Dillon’s, Smith’s, King Sooper’s, and more, serving over 11 million customers daily and employing nearly half a million people.
Denise Osterhues, Kroger's senior director of sustainability and social impact, recently sat down for a Q&A with Store Brands' executive editor Dan Ochwat during last month's Store Brands Industry Forum on sustainability. The interview is available to watch on demand.
"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.”
The 2021 report examines the progress the company made last year in three categories: people (social), planet (environmental), and systems (governance). The full report can be read here.
In 2020, Kroger achieved many goals relating to fighting hunger. The company directed a total of $301 million in food and funds to communities, including $213 million to hunger relief programs during the pandemic. Kroger donated $33 million in combined Kroger Co. Foundation grants to communities, a 60% increase from the previous year.
The company 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 full-time associates, in addition to increasing average wage for hourly store associates to $15.50. Kroger also touted its vaccination program at its in-store pharmacies.
Kroger’s environmental achievements in 2020 include decreasing total carbon emissions by 11.6% and reducing food waste generated in retail stores by 7.2%. The company also launched a recycling program with TerraCycle, allowing customers to send harder-to-recycle plastics from store brand products to TerraCycle.
In 2020, Kroger achieved systems goals of joining the Global Coalition for Animal Welfare, updating policies related to the global supply chain, and spent $4.1 billion with diverse suppliers, a 21% increase from 2019.
"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," said Keith Dailey, Kroger’s VP of corporate affairs and chief sustainability officer. "We are now focused on what lies ahead and progressing our ESG work through the next decade."
Kroger’s long-term goals are also a part of its 2021 ESG report. The company has goals including directing a cumulative 3 billion meals to communities by 2035, increasing retail donations to be 45% of total surplus food rescue, reducing greenhouse gas emissions by 30% by 2030, and achieving zero waste company-wide by 2030.