Chipotle - Smart Energy Decisions

Commercial, Energy Efficiency, Sourcing Renewables  -  March 9, 2021

Chipotle ties executive compensation to sustainability metrics

Chipotle Mexican Grill announced last week a new Environmental, Social and Governance (ESG) structure that will hold its executives more accountable to its goals by tying executive compensation to its ESG accomplishments.

The restaurant chain will tie 10% of officers’ annual incentive bonus to the company’s progress in its Food & Animals, People and Environment goals. These targets include:

  • Environment: Increasing its transparency around its carbon emissions and publishing its Scope 3 emissions by the end of 2021, a goal originally set for 2025.
  • Food & Animals: Increasing pounds of organic, local, and/or regeneratively grown/raised food used in its restaurants year over year. In 2020, Chipotle sourced 31 million pounds of local produce and set a goal to source 37 million pounds by the end of 2021.
  • People: Closing the racial and gender pay gap, while implementing a program to improve its diversity programs.

“We are passionate about inspiring real change in people, food, and the environment every day,” Laurie Schalow, chief corporate affairs and food safety officer, said in a statement. “The compensation plan ensures our leaders continue to set the right example for our more than 88,000 employees while fulfilling our mission to drive change and Cultivate a Better World.”

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