The Kroger Co. released its 2020 Environmental, Social and Governance Report, highlighting progress toward its sustainability goals and confirming the company's commitment to creating communities free of hunger and waste.
Kroger's 2020 report leads with an updated materiality assessment, outlining the ESG topics most meaningful to the company's key stakeholders. The in-depth assessment, conducted in partnership with an external consultancy in early 2020, resulted in an updated list of priority topics.
"Our annual ESG report underpins Kroger's vision to serve America through food inspiration and uplift," said Rodney McMullen, Kroger's chairman and CEO. "We are committed to continuing to integrate ESG metrics into our business strategy, driving shared value for our associates, customers, communities and company. We're pleased to share Kroger's latest performance on key topics, including our 2020 sustainability goals and Zero Hunger | Zero Waste metrics. We also look to what lies ahead, and we're proud to announce the first of several new priorities and commitments that will help affirm Kroger's sustainability leadership through the next decade and beyond."
"As the largest grocery retailer in America, Kroger is committed to being a force for good in the communities we serve," said Keith Dailey, group vice president of corporate affairs and chief sustainability officer. "Our Purpose—to Feed the Human Spirit—continues to guide how we operate our business, care for our communities and deliver value to all our stakeholders. We're proud of our progress in 2019 and remain committed to our vision of a future with Zero Hunger | Zero Waste."
Among the several topics highlighted in the company's 2020 materiality assessment, 12 emerged as the most meaningful to Kroger's key stakeholders. These important issues shaped the content of Kroger's annual ESG report and will continue to guide the company's management approach in the year ahead.
Food Waste
In 2019, Kroger reduced retail food waste generated by 4 percent and improved food waste diversion from landfills by 5 percent. Since introducing Zero Hunger | Zero Waste in 2017, the company has reduced total retail food waste generated by 13 percent through strategic ordering best practices, item markdown programs and innovative supply chain initiatives.
Since 2017, Kroger's store associates have also improved food waste diversion from landfills by 18 percent through increased food waste recycling, including (in order of priority) animal feed, anaerobic digestion and composting programs for food that is no longer edible. The company's goal is to achieve zero food waste by 2025.
Packaging
Kroger continues to bring sustainable packaging solutions to customers through collaborative partnerships in the retail sector and beyond. In 2019, Kroger became the exclusive U.S. grocery retail partner for Loop, TerraCycle's revolutionary reusable packaging platform.
As part of Kroger's commitment to phase out single-use plastic shopping bags in its stores by 2025, the company recently became the Grocery Sector Lead Partner for Closed Loop Partners' Beyond the Bag Initiative—a multi-year collaboration across retail sectors to identify, test and implement alternatives to the traditional single-use plastic retail bag.
Food Safety
In 2019, Kroger announced its plan to standardize date labels for Our Brands food products, providing simpler, easier-to-understand product quality and safety information as part of its Zero Hunger | Zero Waste social impact commitment.
Food Access
Kroger's Zero Hunger | Zero Waste social impact plan is committed to creating communities free of hunger and waste by bringing attention and resources to the complex issues surrounding food insecurity and increasing the availability of affordable and nutritious food for all.
In 2019, Kroger directed the equivalent of 493 million meals to improve food security in the communities it serves, including food and funds donated to Feeding America and its affiliated local food banks and other key hunger-relief partners. This brought the company's total to 1.1 billion meals, surpassing its three-year target.
