2023 SUSTAINABILITY REPORT
CULTIVATE A
BETTER WORLD
2022 SUSTAINABILITY REPORT
CULTIVATE
A BETTER
WORLD
See the difference we can make by farming more organically and growing things locally. Good for our bodies and good for the Earth. Become a part of nature again.
WHO WE ARE
Since our beginning in 1993, Chipotle has been committed to serving Food with Integrity and revolutionizing the fast food Industry. Our real ingredients are responsibly sourced and classically cooked with people, animals, and the environment in mind. Everything is connected.
Though our heritage is one of transformation and innovation, one thing will never change: Chipotle’s commitment to doing what’s right. Our relentless pursuit for making ethical choices at all times is what has built trust in Chipotle — from our customers, business partners, colleagues, and investors. Every person within the organization is responsible for maintaining trust, both internally and externally. Cultivating a Better World is not easy, but when we all do our part, we can make a difference.
OUR VALUES KEEP US REAL
Foster a culture that values and champions our diversity, while leveraging the individual talents of all team members to grow our business and Cultivate a Better World.
THE LINE IS THE MOMENT OF TRUTH
When our guests win, so do we.
Everything we do starts with our restaurants. Serving great food with great service in a safe, quick, clean, and happy environment is always priority one.
TEACH AND TASTE CHIPOTLE
Take pride in making the Chipotle experience exceptional.
Take the time to learn it well, teach it right, and hold others to the same standard.
AUTHENTICITY LIVES HERE
Our food is real and so are we.
Be your full self and make a difference.
THE MOVEMENT IS REAL
Stand up for what’s important even when it’s hard.
We source better ingredients, hire better people, and work hard to change the world. Talk about what makes you proud, so we can do more of it.
2022 IMPACT
In 2022, we sought to continue making a real impact for our communities, people, and planet.
PEOPLE
_______________________
Goal: Give $5 million over the next five years (by end of 2025) to help young farmers.
Progress: Provided over $1 million to farmers since initial commitment.
FOOD & ANIMALS
_______________________
22 Million pounds of organic & transitional ingredients purchased.
More than 36 Million pounds of local produce purchased.1
$35 million invested into local food systems.
ENVIRONMENT
_______________________
100% of our new restaurant openings participated in our food donation “Harvest Program.”
40% of our electricity was purchased from renewable sources.2
13% reduction in our direct greenhouse gas emissions.2
1Food sourced from within 350 miles of a distribution center is defined as local.
2Includes the purchase of energy attribute certificates.
INNOVATION
INNOVATION
An innovator in restaurant technology, Chipotle continues to invest in emerging solutions to support its growing digital business and reduce friction in its restaurants. We believe technology deployed consistently and correctly can improve the human experience.
CULTIVATE NEXT
In 2022, Chipotle formed Cultivate Next, a new venture fund established to make early-stage investments into strategically aligned companies that further our mission to Cultivate a Better World. Cultivate Next's aim is to supply seed to Series B stage companies that can accelerate our strategic priorities such as running great restaurants, amplifying technology and innovation, further advancing our Food with Integrity mission, and expanding access and convenience for consumers. The new venture fund has an initial size of $50 million and is currently financed solely by Chipotle.
"We are exploring investments in emerging innovations that will enhance our employee and guest experience, and quite possibly revolutionize the restaurant industry. Investing in forward-thinking ventures that are looking to drive meaningful change at scale will help accelerate Chipotle's aggressive growth plans."
– Curt Garner, Chief Technology Officer, Chipotle.
ESG GOALS
ESG GOALS
In March of 2021, we introduced a new Environmental, Social, and Governance (ESG) metric that ties a portion of executive compensation to ESG goals.
The objectives, which are categorized by Food & Animals, People, and the Environment, hold our executive leadership team responsible to make business decisions that Cultivate a Better World.
The ESG metric can increase or decrease overall payout under the bonus plan by 15%, based on level of achievement of the ESG goals.
2022 ESG GOALS ACHIEVED
FOOD & ANIMALS
_______________________
Purchase at least 57 million pounds of organic, transitional, and/or locally grown ingredients.4
Purchased 58.3 million pounds of organic, transitional, and/or locally grown ingredients.
PEOPLE
_______________________
Increase diversity to 60% within our internal pipeline of candidates.3
Reached 63% diversity within our internal pipeline of candidates.
ENVIRONMENT
_______________________
Reduce Scope 1 and 2 greenhouse gas (GHG) emissions by at least 5%.
Exceeded our goal with GHG emission reductions of 13% below 2019 baseline.5
3For all promotions into salaried restaurant support center positions and Field management positions such as Field Leaders, Team Directors, and Regional Vice Presidents.
4Rice and beans are excluded.
5Includes the purchase of energy attribute certificates. See Environment section for additional information.
FOOD AND
ANIMALS
FOOD AND ANIMALS
2022 OVERVIEW
Since the first Chipotle opened in 1993, we’ve served fresh, wholesome ingredients prepared using classic cooking techniques. It has always been a top priority to ensure our food is safe, delicious, and made from responsibly sourced ingredients.
22 Million
Pounds of organic and transitional produce purchased
232 Million
Pounds of animal welfare certified pork, chicken, and beef purchased6
36 Million
More than 36 million pounds of local produce purchased
GOALS AND PROGRESS
ACHIEVED
_______________________
Goal: Achieve 100% American Humane certification for our chicken by 2022.
Progress: In the United States, 100% of the chicken purchased was American Humane certified.6
ON-TRACK
_______________________
Goal: Give $5 million over the next five years (by end of 2025) to help young farmers.
Progress: Provided over $1 million to farmers since initial commitment.
ON-TRACK
_______________________
Goal: Convert over 400 acres of conventional farmland to organic farmland by 2025.
Progress: We have partnered with our growers to convert over 214 acres of conventional farmland to organic farmland via transitional growing methods.
FOOD WITH INTEGRITY (FWI)
As part of our Food with Integrity (FWI) commitment, we require our suppliers to follow the Supplier Code of Conduct.7
Responsibly Raised Meats
All animals have been responsibly raised, which means that they’re treated humanely from birth to slaughter, fed a vegetarian diet, and never given added hormones or sub-therapeutic antibiotics
rBGH Free: 100% of the milk in our sour cream, cheese, and queso comes from cows that have never been treated with rBGH (Recombinant Bovine Growth Hormone).
GMO Free: All ingredients and processes must comply with our Food Safety and Quality Assurance requirements.
All ingredients must be traceable, with transparency covering point of origin, growing, handling, and harvesting practices.
Local and Organic:8 Produce should be grown organically, and locally sourced from within 350 miles of a distribution center. The majority of our restaurants are located within 80 miles of a distribution center.
Farmers: Farmers should raise their animals and crops with respect for the long-term health of the land and community.
6Certified refers to third-party animal welfare certification
7FWI is applicable to food and beverage suppliers. Refer to our website for the full Supplier Code of Conduct.
8Strongly prefer but do not require for suppliers to meet local, and organic standards (USDA organic).
PEOPLE
PEOPLE
2022 OVERVIEW
As a people-first company rooted in values, our purpose of Cultivating a Better World extends beyond serving nutritious food using real ingredients. It means hiring world-class individuals dedicated to investing in their future and partnering together to positively impact the communities they serve.
22,000
Over 22,000 internal promotions of our people
282,000
Donated over 282,000 meals to those in need in our communities
$37M
Awarded in bonuses
$14M
Awarded in tuition assistance to more than 4,800 employees
$4.3M
Raised through Round Up for Real Change
$16
Chipotle’s average hourly wage
GOALS AND PROGRESS
ACHIEVED
_______________________
Goal: Launch Emerging Leader and Mentoring programs to ensure we have a diverse slate of “ready now” internal talent for critical roles.
Progress: Successfully launched the inaugural Leadership Evolution and Development Program (LEAD) aimed at developing emerging leaders with the aspiration and motivation to thrive in higher roles at Chipotle. Nearly 60% of this cohort has already been promoted into new roles with expanded scope and responsibilities.
______________________
Goal: In partnership with our Serves Community Service Employee Resource Group (ERG), re-launch our service days for RSC and our Field employees.
Progress: Completed service days in partnership with our ERG.
_______________________
Goal: Continue our partnership with Guild moving from tuition assistance to providing debt free degrees as well as certificates for skills that are relevant to our employees.
Progress: We now have nearly 100 degrees at 10 universities in which our employees can receive a degree with Chipotle covering the full tuition cost. We will continue our partnership with Guild and seek to drive engagement/participation.
DIVERSITY AND INCLUSION
Chipotle’s Diversity, Equity and Inclusion strategy is centered around four pillars:
Learn to create awareness.
Develop to activate our talent.
Create access and equity by eliminating barriers for diverse candidates and employees.
Support our communities by creating pathways to healthier food, education, and jobs.
Since December 2021, we have been participating in Management Leadership for Tomorrow’s (MLT) Black Equity at Work Certification Program, which establishes a comprehensive aggregate measurement system and provides a rigorous, results-oriented approach that accelerates progress toward Black equity internally, amongst our employees, and externally by supporting Black equity within our business partners and in the communities where we operate. In 2022, we were notified that our action plan was approved, which is the first step toward achieving certification. We will spend the next few years refining and implementing our plan, in partnership with MLT, with the expectation of achieving full certification by 2024.
In 2022, we worked closely with the Trevor Project to ensure support for all members of our community by providing inclusivity training focused on creating an inclusive work environment.
As of December 31, 2022, 50% of our United States based employee population was female and approximately 67% of our United States based employee population was comprised of racial and ethnic minorities.
Encourage employees to get involved with our ERGs to spark conversations, learn from each other, and grow their careers.
GIVING
GIVING
We’re nothing without the communities we serve. That’s why we’ve set up several programs and partnerships to give back to all the communities we’re proud to call home.
$6+ MILLION
_______________________
FUNDRAISERS & DONATIONS
$6+ million donated through in-restaurant fundraisers in 2022. Since 2014 we have donated over $92M to 328,000 community groups through our fundraisers.
$1.1 MILLION
_______________________
CORPORATE GIVING
Given to organizations like the OC Firefighters Association, Pelotonia, KB Foundation, Tustin Police Officers Association, among others through Chipotle's Corporate Giving.
$4.3 MILLION
_______________________
ROUND UP FOR REAL CHANGE
Raised for 10 nonprofits, including classroom supplies for 2,200 teachers in underserved communities.
$60,000
_______________________
CULTIVATE FOUNDATION
Issued in grants to organizations supporting a sustainable and equitable food system like Niman Ranch, Soul Fire Farm, Black Urban Growers, The Culinary Institute of America, and The Nature Conservancy.
282,000+
_______________________
FOOD DONATION
Over 282,000 meals were donated to 291 local community partners.
$250,000
_______________________
SEED GRANTS TO YOUNG FARMERS
$250,000 donated through 50 Seed Grants to help Cultivate a Better World.
$50,000 was given to the Farm Aid Family Farm Disaster Fund, supporting Florida farmers and ranchers affected by Hurricane Ian. We also partnered with the Farmlink Project to donate more than 100,000 lbs. of produce to food banks in Fort Myers, one of the communities hit hardest by Hurricane Ian.
OUR COMMITMENT TO FARMERS
OUR COMMITMENT TO FARMERS
Farmers inspire us. How we grow our food is how we grow our future. That’s why we have made a commitment to give $5 million by 2025 to help young farmers.
ONE MILLION ACRES FOR THE FUTURE: NATIONAL YOUNG FARMERS COALITION
We helped raise over $1 million to support the National Young Farmers Coalition efforts to advocate for policy change in the 2023 Farm Bill that would facilitate equitable access to one million acres of land for the next generation of farmers. Further, through our Round Up for Real Change program, we raised an additional $330,000 to support the organization.
TRACTOR BEVERAGES
All Tractor Beverages sold by Chipotle help farmers, with 5% of Chipotle’s profits from its sale of these beverages being donated to causes that benefit farmers. Funds expand Chipotle’s existing farmer programs including scholarships and grants to start, run, or grow farming.
YOUNG FARMER ‘SEED’ GRANT PROGRAM
Seed Grants help remove barriers to make it possible for the next generation of farmers and ranchers to succeed. We provide annual grants of $5,000 each to young farmers in need through our partnership with the National Young Farmers Coalition.
ENVIRONMENT
CULTIVATE A BETTER WORLD
We evaluate how we can Cultivate a Better World in everything we do. Our commitment to make a positive impact on the planet extends beyond our direct operations, but on strategies to engage with the community and our supply chain.
100%
100% of our new restaurant openings participated in our food donation “Harvest Program”
32%
Set up and maintained composting program at 32% of all restaurants
13%
Reduced Scope 1 & 2 GHGs by 13%
49%
Achieved a 49% landfill diversion rate
65,000 MWH
Reduced approximately 65,000 MWh of energy via our energy management systems
GOALS
CLIMATE
_______________________
50% reduction in Scope 1, 2, & 3 greenhouse gas emissions by 20309
BIODIVERSITY
_______________________
Identify key biodiversity hotspots throughout our operation by 2025
WASTE
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5% reduction in waste to landfill by 202510
9Emission reductions are compared to a 2019 baseline.
102020 waste baseline.
CULTIVATE A
BETTER WORLD
CULTIVATE A BETTER WORLD