Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Agricultural Practices
• Supply Chain Sustainability
• Energy Efficiency
• Waste Reduction
• Corporate Governance
• Employee Well-being
• Diversity and Inclusion
• Fighting Hunger

Environmental Achievements

• Reduced annual truck mileage by 9.8 million miles, resulting in an estimated CO2 reduction of approximately 17,800 metric tons.
• Reduced kilowatt hour usage by 6.7 percent in Broadline facilities.
• Reduced plastic use by switching from shrink-wrapping pallets to reusable pallet bands.
• Implemented XY routing for fuel-efficient deliveries.

Social Achievements

• Employee satisfaction survey showed 75% or more of associates described themselves as “satisfied” or “very satisfied”, compared to 46 percent in the external market.
• Spent approximately $600 million with nearly 800 women- and minority-owned business suppliers.
• Supported Share Our Strength to fight childhood hunger.
• Associates volunteered in local food banks and local operating companies donated to local food banks and non-profit groups.

Governance Achievements

• Implemented a majority vote policy for the board and an improved policy restricting gifts accepted by employees.
• Established a Sustainability Committee on the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Quantifying sustainability data across a large and decentralized organization.

Mitigation Strategies

• Working to develop systems for collecting and aggregating key metrics.

Supply Chain Management

Responsible Procurement

• SYSCO Supplier Code of Conduct covering ethics and work practices
• Social audit process for suppliers in Southeast Asia and Latin America
• Integrated Pest Management (IPM) requirements for suppliers of fresh produce
• Strict animal welfare requirements for meat and poultry suppliers
• Working with the World Wildlife Fund to develop sustainable fisheries guidelines

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Fresh meats raised without added hormones
• Line of organic foods
• Line of vegetarian foods

Environmental Metrics

ESG Focus Areas

• Charitable Giving
• Inclusion + Diversity
• Health & Well-Being
• Animal Welfare
• Human Rights
• Responsible Sourcing
• Food Safety
• Sustainable Agriculture
• Energy
• Waste

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Third-party Assurance: Ernst & Young (financial data); Lloyd’s Register (LRQA) (certain environmental data)

Environmental Metrics

ESG Focus Areas

• Philanthropy & Community Giving
• Diversity, Equity & Inclusion
• Health & Wellness
• Animal Welfare
• Responsible Sourcing
• Human Rights
• Sustainable Agriculture
• Energy & Carbon
• Waste Reduction

Environmental Achievements

• Piloted an electric truck and began preparations to partially electrify our delivery fleet
• Launched a sustainable grazing initiative to help tackle climate change and promote biodiversity
• Donated more than 27 million meals; Achieved our sustainable seafood goals and expanded our future commitments
• Reduced our Scope 1 & 2 emissions by 27.5% by 2030
• Work with suppliers representing 67% of Scope 3 emissions to set science-based targets by 2026
• Divert 90% of waste, including food, from landfill

Social Achievements

• Donated more than 27 million meals
• Increased total gender and ethnic diversity of U.S.-based associates to 58%
• Increased spend with women and minority-owned suppliers
• Doubled associate participation rates in health and well-being programs
• Expanded products in our portfolio with health and wellness benefits
• Launched a new mentorship pilot program designed to help minority- and women-owned suppliers thrive and develop long-lasting partnerships with Sysco

Governance Achievements

• Established a Global DEI Advisory Council and ambassador program to help inform Sysco’s DEI strategy and embed it into the business
• Launched our Global Good Goal to donate $500 million worth of good by 2025

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted every facet of our business, putting meaningful strain on our people and our supply chain
• Supply chain disruptions
• Pandemic-related closures impacting diverse supplier partnerships
• Travel restrictions impacting animal welfare audits and social responsibility assessments

Mitigation Strategies

• Improved fill rates when product was in short supply, waived order minimums, partnered with customers on payment plans
• Developed load-fill optimization capability to reduce the number of trucks used
• Invested in omni-channel inventory management capabilities
• Shifted to virtual audits and assessments where travel was not permitted
• Developed program requirements for SYSCO branded suppliers who do not harvest animals but purchase from supply sources that are engaged in direct animal handling

Supply Chain Management

Supplier Audits: Over 16,000 audits (FY2021)

Responsible Procurement

• Supplier Code of Conduct
• Integrated Pest Management (IPM) program
• Sustainability Standard pilot program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Fleet electrification

Reporting Standards

Frameworks Used: GRI Core, SASB

Certifications: ISO 45001, ISO 14001, ISO 50001

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 14 (Life Below Water)
• SDG 15 (Life On Land)

Sysco’s CSR report highlights our work in several key areas of the SDGs

Sustainable Products & Innovation

• SAVRpak
• Sustainable Agave Company Straws
• CentraSmart Eco-Friendly Microfiber Towels
• Sysco Simply Sprouted Grain Hamburger Buns
• Sysco Simply Plant-Based Vegetable Pasta

Awards & Recognition

• Radisson’s Responsible Business Partner of the Year (FY2021)
• Houston Business Journal’s Outstanding Supplier Diversity Award (2021)
• Top Diversity Employer for 2021 in the Food & Beverage category by DiversityJobs.com

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability
• Diversity, Equity & Inclusion

Environmental Achievements

• Identified emissions-reduction improvements at 19 facilities, representing nearly $290,000 in annual energy savings. Since the inception of our EM program, we calculate that we have avoided $375 million in costs over a 16-year period
• Received first electric tractors and electric trailers; launched first EV Hub in Riverside, California.
• Purchased RECs for a portion of the company’s US energy load.

Social Achievements

• Launched sustainable beef cattle grazing efforts in the Southern Plains.
• Hosted a Supplier Summit in March 2023 to share Sysco’s climate goals and expectations for suppliers.
• Expanded responsible seafood sourcing program to include Sysco U.S. and Canada Broadline and U.S. Specialty company lines of business.

Governance Achievements

• Added an ESG metric to the company’s executive compensation plan, including gender representation, diverse recruiting and carbon reduction representing 10% of the AIP opportunity.
• Board-level oversight of climate-related issues through a Sustainability Committee.

Climate Goals & Targets

Environmental Challenges

• Increased indirect (operating) costs due to carbon pricing mechanisms, volatile fuel prices, and potential new regulatory requirements.
• Increased indirect (operating) costs due to acute physical risks from extreme weather events.
• Supply chain disruptions due to extreme weather events.

Mitigation Strategies

• Initiatives aimed at improving fuel efficiency (improved routing, fleet renewal, alternative fuel vehicles).
• Forward purchase commitments for diesel fuel.
• Robust business continuity program, emergency preparedness, and crisis management procedures.
• Commercial weather service to proactively identify severe weather risks.
• Regulatory risk is an identified category within the Enterprise Risk Management system. Ongoing monitoring and reporting to the Board.
• Domestic and international tax teams partner with operations to monitor carbon taxes and/or schemes.

Supply Chain Management

Responsible Procurement

• Science-based targets for suppliers
• Sustainable Agriculture/Integrated Pest Management (IPM) program
• Responsible sourcing of palm oil

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, tornadoes, wildfires)
• Supply chain disruptions

Transition Risks

• Carbon pricing mechanisms
• Volatile fuel prices
• Enhanced emissions-reporting obligations

Opportunities

• Increased demand for locally sourced and sustainable products
• Reduced indirect (operating) costs from more efficient modes of transport
• Reduced indirect (operating) costs from renewable energy and energy-efficiency measures

Reporting Standards

Frameworks Used: Science Based Targets initiative, Greenhouse Gas Protocol

Third-party Assurance: Third-party limited assurance

Sustainable Products & Innovation

• Locally sourced produce
• Sysco Brand products with RSPO-certified palm oil

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity, Equity, and Inclusion

Environmental Achievements

• Broke ground on a first-of-its-kind Electric Vehicle Hub in Riverside, CA, powered by onsite solar energy.

Social Achievements

• Sysco colleagues spent nearly 24,000 hours volunteering in their communities.
• Sysco donated millions of meals and $1 million to Feeding America.

Governance Achievements

• Environmental, Social, and Governance and diversity, equity, and inclusion metrics were included in the compensation program for the second year in a row.

Climate Goals & Targets

Environmental Challenges

• Shortage of qualified labor, particularly warehouse workers and drivers.
• Increased labor costs.
• Potential changes in labor legislation.
• Supply chain disruptions due to various factors (labor shortages, weather, transportation interruptions, etc.).
• Product cost inflation.
• Geopolitical instability and changes in laws and regulations in international markets.

Mitigation Strategies

• Hiring, referral, and retention bonus programs.
• Improved supply chain efficiency through refined colleague training and performance management (Sysco Driver Academy).
• Effective management of inflation and strategic sourcing initiatives.
• Fuel surcharge program.
• Fuel hedging arrangements.
• Continued focus on mergers and acquisitions to reinforce existing businesses and cultivate new channels, segments, and capabilities.

Supply Chain Management

Responsible Procurement

• Focus on increasing profitability by lowering operating costs and aggregate inventory levels.
• Increasing sourcing of locally sourced products.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable and responsible sourcing
• Local community engagement
• Diversity and inclusion
• Waste (including food waste)
• Human rights
• Packaging
• Animal welfare
• Employee health and well-being
• Health and nutrition
• Traceability and transparency
• Nature and biodiversity

Environmental Achievements

• Improved waste diversion from 67% to 83% from FY2023 to June 2024
• Deployed an additional 110 EVs across global fleets
• Sourced 4.3 million gallons of renewable diesel
• Signed a PPA to increase renewable electricity at Sysco sites by 40% by 2027
• Expanded Sustainable Agriculture program to 17 fresh crops
• Avoided 6.1 million pounds of pesticides through IPM program

Social Achievements

• Generated $68M (including 20M+ meals) in global community good in FY2024, totaling $349M (123M+ meals) to date
• Nearly 17,000 volunteer hours during global Purpose Month
• Increased representation of women in global workforce and women, Black/African American, Hispanic/Latino, or multiracial colleagues among U.S. people leaders
• 28% YOY growth in Supply Chain Internship cohort
• Completed first full year of Sysco’s Future Leaders Program

Governance Achievements

• 50% gender and racial or ethnic diversity on Board of Directors
• Appointed Sysco CEO Kevin Hourican as Board Chair
• Launched new Global Code of Conduct and Supplier Code of Conduct
• Conducted updated Code training for all colleagues

Climate Goals & Targets

Environmental Challenges

• Addressing value chain (Scope 3) emissions
• Ensuring compliance with evolving animal welfare legislation
• Managing risks related to deforestation and conversion of natural ecosystems
• Reducing plastic waste in packaging

Mitigation Strategies

• Engaging suppliers to set science-based targets (SBTs)
• Collaborating with suppliers to comply with legislation (e.g., California's Farm Animal Confinement Initiative)
• Engaging with suppliers to ensure deforestation-free commodities
• Establishing packaging guidelines for suppliers, transitioning to kraft corrugate cases, and piloting sustainable alternatives

Supply Chain Management

Supplier Audits: 196 audits conducted in FY2024

Responsible Procurement

• Supplier Code of Conduct (SCOC)
• Sustainable Agriculture program
• Packaging guidelines
• Science-based targets (SBTs) for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: EY

Sustainable Products & Innovation

• One Planet One Table assortment

Awards & Recognition

• In It for the Long Haul Award (2024 Alternative Clean Transportation Expo)
• Canada’s Greenest Employer (Globe and Mail)
• Good Done Right Supplier of the Year (Wendy’s)