Climate Change Data

Chipotle Mexican Grill, Inc.

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:244,164 tCO2e/year
Scope 1 Emissions:125,868 tCO2e/year
Scope 2 Emissions:118,296 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:22%
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:2,071,583 cubic yards/year
Carbon Intensity:40.69 MT CO2e/$M (Scope 1 and 2)

ESG Focus Areas

  • Food & Animals
  • People
  • Environment

Environmental Achievements

  • Achieved a 51% landfill diversion rate
  • Composted 60,519 cubic yards of waste
  • Recycled 1,999,224 cubic yards of waste
  • Offset 3,875 tons of carbon emissions
  • Reduced 65,582 MWh of energy via our energy management systems
  • Purchased approximately 22% of our electricity from renewable sources

Social Achievements

  • Donated over $5 million to local community organizations
  • Donated over 455,000 meals to those in need
  • Launched five Employee Resource Groups (ERGs)
  • Achieved a Human Rights Campaign Corporate Equality Index score of 100% as of 2021
  • Promoted over 13,500 employees

Governance Achievements

  • Introduced a new ESG metric that ties executive compensation to ESG goals in 2021 (10% of officers’ annual incentive bonus tied to ESG progress)

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 5% overall waste reduction by 2025 (as compared to a 2020 baseline)
  • Identify key biodiversity hotspots throughout our operation by 2025
  • Baseline food waste throughout supply chain and identify key areas of impact opportunity by 2023
  • Increase energy savings at the restaurant level through improvements to our Energy Management Systems (EMS) by end of 2022
  • Baseline construction diversion rate by end of 2022
Short-term Goals:
  • Maintain 90% recycling rate at all restaurants in 2021
  • Increase the percentage of renewable energy sourced year over year
  • Pilot at least one innovative new packaging design that reduces plastic in 2021
  • Pilot closed-loop recycling program for our cutlery by end of 2021
  • Pilot scalable diversion program for construction projects by end of 2021
  • Ensure we open 90% of new restaurants with a diversion program (recycling and/or compost) in 2021
  • Add an additional 125 restaurants to our compost program by end of 2022
  • Create internal Climate Committee focused on curbing companywide GHG emissions by end 2021
  • Identify key water risk areas and ingredients throughout supply chain in an effort to inform our water conservation strategy
  • Conduct updated water usage baseline at restaurant level by end of 2021 to inform our water conservation strategy
  • Set science-based emissions reduction targets verified by the Science-Based Targets Initiative (SBTi) by end of 2021
  • Pilot at least one strategic supply chain food waste reduction project by end of 2021

Environmental Challenges

  • Supply chain disruptions due to COVID-19
  • Climate change impacts on ingredient prices and availability
  • Maintaining high levels of quality and safety with ingredient supply volatility
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented COVID-19 safety protocols
  • Increased supplier audits and oversight
  • Developed an internal plan to guide future business decisions regarding climate change
  • Created a climate committee focused on curbing emissions

Supply Chain Management

Supplier Audits: 100% of domestic suppliers annually, 100% of international suppliers biennially (adjusted in 2020 due to COVID-19)

Responsible Procurement
  • Supplier Code of Conduct
  • Animal Welfare Guidelines
  • Food With Integrity program
  • Sustainability and Diversity Survey (2020)

Climate-Related Risks & Opportunities

Physical Risks
  • Increased weather volatility impacting ingredient prices and availability
Transition Risks
  • Increased costs from climate change impacts on supply chain
Opportunities
  • Developing more sustainable agricultural practices

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: Null

Third-party Assurance: Eide Bailly, LLP (Scope 1 and 2 emissions)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Cauliflower rice
  • Lifestyle Bowls
  • Chipotle Goods natural dye line

Awards & Recognition

  • Many awards listed in the report for sustainability, food safety, diversity, and employee well-being

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1,419,298 MT CO2e (Scope 3, 2019 data)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:23.6% in 2021
Total Energy Consumption:50,771 MWh reduction in 2021
Water Consumption:Not disclosed
Waste Generated:5.1 million cubic yards (total); 2.4 million recycled; 107,900 composted; 68,490 to energy
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Food & Animals
  • People
  • Environment

Environmental Achievements

  • Reduced energy consumption by 12.7% (50,771 MWh) through Energy Management Systems.
  • Achieved a 50% landfill diversion rate.
  • Increased renewable energy utilization from 22% to 23.6%.

Social Achievements

  • 90% of restaurant management roles filled through internal promotions.
  • Offered free and confidential EAP services to all employees.
  • Achieved a 100 score on the Human Rights Campaign Corporate Equality Index.

Governance Achievements

  • Tied 10% of executive compensation to ESG goals.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce absolute Scope 1, 2, and 3 GHG emissions by 50% by 2030 (from 2019 baseline).
Short-term Goals:
  • Reduce Scope 1 and 2 GHG emissions by at least 5% by the end of 2022.

Environmental Challenges

  • Supply chain disruptions due to ingredient shortages and increased shipping costs.
  • Higher than normal employee turnover (141% for restaurant hourly employees in 2021).
  • Scope 3 emissions accounting for over 93% of total greenhouse gas emissions.
Mitigation Strategies
  • Continued to uphold Food With Integrity values despite challenges.
  • Working to normalize employee turnover through improved employee life cycle management.
  • Engaged cross-functional stakeholders and third-party experts to develop strategies for reducing Scope 3 emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Food With Integrity guidelines
  • Working with suppliers to meet sustainability and quality standards.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Piloted forks using 20% less plastic.

Awards & Recognition

  • Fast Company's 10 Most Innovative Dining Companies
  • Investor's Business Daily's 100 Best ESG Companies
  • SmartBrief Innovation Awards Sustainable Solution winner

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:40%
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • People
  • Food and Animals
  • Environment

Environmental Achievements

  • Procured 40% of total energy consumption for 2022 from renewable sources with RECs from Green-e® Energy certified wind
  • Implemented restaurant efficiencies to reduce natural gas consumption in 11 locations
  • Pilot of new all-electric restaurant design utilizing 100% renewable energy

Social Achievements

  • Donated $6 million to local community organizations through 29,000 in-restaurant fundraisers
  • Promoted over 22,000 Chipotle employees
  • Awarded $37 million in bonuses to Chipotle employees in 2022
  • Raised almost $14 million through Round Up for Real Change since its inception
  • Donated over 282,000 meals to those in need in local communities
  • 90% of employees surveyed say Chipotle is a great place to work

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce direct and indirect greenhouse gas emissions 50% by 2030 compared to a 2019 baseline
Short-term Goals:
  • Increase the amount of local produce purchased to at least 36.4 million pounds in 2023
  • Have more than 100 new locations in 2024 utilize all-electric equipment and at least some additional elements from its new design

Environmental Challenges

  • Reducing greenhouse gas emissions across the company
  • Sourcing sustainable ingredients
  • Reducing environmental impact of restaurants
Mitigation Strategies
  • Science-based targets to reduce direct and indirect greenhouse gas emissions 50% by 2030 compared to a 2019 baseline
  • Investing in projects to drive emission reductions in beef and dairy production
  • Exploring and developing strategies to support greater adoption of regenerative agriculture practices among supply chain partners
  • Developing plans for offering additional vegetarian and vegan menu items
  • Increasing the amount of local produce purchased
  • Standardizing the installation of energy management systems at every restaurant
  • Exploring greater use of low carbon fuels and adoption of renewable resources in logistics
  • New all-electric restaurant design

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Working with suppliers with rigorous animal welfare practices
  • Supporting organic, transitional, and local growers
  • Investing $35 million into local food systems
  • Purchasing 22 million pounds of organic & transitional ingredients
  • Purchasing more than 36 million pounds of local produce
  • Purchasing more than 14 million pounds of organically grown produce
  • Purchasing 53 million pounds of certified pork, chicken, and beef

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: Green-e® Energy certified wind

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:4,305,643 tCO2e/year
Scope 1 Emissions:145,478 tCO2e/year
Scope 2 Emissions:60,417 tCO2e/year
Scope 3 Emissions:4,099,748 tCO2e/year
Renewable Energy Share:50% of electricity consumption
Total Energy Consumption:111,183 GJ/year
Water Consumption:6,749,149 m3/year
Waste Generated:417,319 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Food & Animals
  • People
  • Environment

Environmental Achievements

  • Reduced Scope 1 and 2 greenhouse gas emissions by 13%
  • 100% of new restaurant openings participated in the food donation “Harvest Program”
  • Established composting services at 265 restaurant locations

Social Achievements

  • Donated over $6.9 million to local community organizations through 33,000 restaurant fundraisers
  • Launched charitable match employee programs “Dish Out” and “Chip In”
  • More than 24,000 internal promotions

Governance Achievements

  • Tied a portion of executive compensation to drive Brand Purpose goals

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1, 2, and 3 greenhouse gas emissions by 50% by 2030
  • Achieve 100% controlled atmospheric stun (CAS) in chicken slaughter by 2026
Short-term Goals:
  • Reduce waste to landfill by 5% by 2025
  • Establish composting resources at 235 restaurants

Environmental Challenges

  • Scope 3 emissions increased by 13% due to new restaurant openings
  • Achieving 100% controlled atmospheric stun (CAS) in chicken slaughter by 2026 requires significant supplier investment
  • Reducing Scope 3 emissions requires dedicated engagement with supply chain partners
Mitigation Strategies
  • Created working groups to support development of strategic emission reduction activities with key suppliers
  • Engaging with suppliers to implement regenerative agriculture practices
  • Working with suppliers to assess the fiscal and resource impacts of changing processes and overhauling systems for CAS

Supply Chain Management

Supplier Audits: 100% of meat and dairy suppliers audited annually

Responsible Procurement
  • Supplier Code of Conduct requiring compliance with applicable laws and prohibiting forced labor, child labor, and other human rights violations
  • Specific standards for responsibly raised meats and dairy, produce

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather impacting ingredient availability and restaurant operations
  • Seasonal shifts impacting agricultural production
Transition Risks
  • Construction delays and increased utility costs due to climate regulations
Opportunities
  • Resource efficiency in agriculture and supply chain, building design, and low-carbon alternatives

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Re-designed burrito bowls to optimize shipping and reduce materials

Awards & Recognition

  • Listed on Fortune’s World’s Most Admired Companies, Bloomberg Gender Equality Index, Forbes Best Brands for Social Impact, and others