Commercial, GHG Emissions - February 24, 2022
Chipotle Ties Executive Bonuses to ESG Targets
Chipotle Mexican Grill announced Feb. 22 that it will begin to tie its 2022 ESG targets to executive compensation, either increasing or decreasing 2022 annual incentive bonuses by up to 15% based on their achievement.
These goals to which compensation will be tied are a 5% reduction in Scope 1 and 2 emissions in 2022. Chipotle announced its science-based targets, which were validated by the SBTi, last year, including an overall goal to reduce Scope 1, 2, and 3 emissions by 50% by 2050 from 2019 levels.
Progress toward Chipotle’s emissions goals will be announced in its Sustainability report update coming out later this spring.
“Chipotle's ESG goals are designed to motivate our executive leadership team to make responsible business decisions that Cultivate A Better World,” Laurie Schalow, Chief Corporate Affairs & Food Safety Officer at Chipotle, said 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.”