Brian Niccol, CEO of Chipotle Mexican Grill
Adam Jeffery | CNBC
Chipotle Mexican Grill stated Thursday that executive compensation will now be linked to hitting targets tied to the corporate’s environmental and diversity goals.
The burrito chain is following within the footsteps of Starbucks and McDonald’s, each of which not too long ago announced that efficiency for racial and gender diversity goals will impression executive compensation plans. Individual buyers and massive asset managers like BlackRock are more and more selecting shares with robust environmental, social and company governance in thoughts, pushing firms to make modifications to turn into a extra enticing funding.
“I think the increased focus on performance around ESG and investor feedback was definitely behind our decision to go public with this,” stated Laurie Schalow, who oversees sustainability and ESG reporting for Chipotle in her position as company affairs chief and meals security officer.
Starting this yr, 10% of Chipotle executives’ annual incentives will be tied to their progress towards attaining firm goals.
“It’s very important for us to be transparent and to be held accountable. We can say a lot of words, but we want to make sure that we have the actions to back it up,” Schalow stated.
Those targets embody rising the kilos of natural, native or regeneratively grown or raised meals from the earlier yr. Last yr, Chipotle hit 31 million kilos of native produce below this umbrella, and it is set a objective of 37 million kilos by the top of 2021.
The firm plans to publish its carbon footprint, together with all oblique emissions alongside its worth chain, by the top of the yr, quicker than its prior anticipated publication date of 2025. Schalow stated that the corporate will announce new sustainability goals stemming from these learnings when the report is launched.
Chipotle can also be searching for to preserve each racial and gender pay fairness and promote extra ladies and individuals of shade above the restaurant degree. It’s created a coaching academy with on-line programs that educate a variety of abilities, from battle decision to setting goals, with the goal of serving to workers of all backgrounds climb the company ladder. The firm employs almost 88,000 individuals, as of Dec. 31.
Shares of Chipotle have risen 91% within the final 12 months, giving it a market worth of $39.6 billion.