Performance Food Group Company
Climate Impact & Sustainability Data (2020-06-28 to 2021-07-03, 2022-07-03 to 2023-07-01)
Reporting Period: 2020-06-28 to 2021-07-03
Environmental Metrics
Total Carbon Emissions:813,566 metric tons CO2e (Scope 1 & 2 market-based)
Scope 1 Emissions:663,670 metric tons CO2e
Scope 2 Emissions:150,403 metric tons CO2e (market-based)
Renewable Energy Share:<1%
Total Energy Consumption:367,701 MWh
Waste Generated:407,658,946 pounds (73% diverted)
ESG Focus Areas
- Operations & Sustainable Performance
- Supply Chain & Responsible Sourcing
- Associate Engagement & Diversity & Inclusion
- Community Engagement
Environmental Achievements
- Rolled out an Energy Efficiency Treasure Hunt pilot program at Performance Foodservice – Chicago, reducing energy intensity by 14%
- Announced a 20-year net metering credit agreement for a 2.25 megawatt community solar project in Maine
- Achieved a 73% waste diversion rate from landfill
- Partnered with Emerald Brand to expand sustainable disposables offerings, resulting in estimated environmental savings (energy, emissions, water, waste reduction)
Social Achievements
- Launched an ESG Supplier Survey to assess suppliers’ ESG performance
- Implemented women and other associate resource groups
- Conducted first enterprise-wide associate engagement survey with 76% response rate and 75% overall favorability score
- Expanded partnership with Truckers Against Trafficking to combat human trafficking
- Donated over 2 million pounds of food to Feeding America and local food banks
Governance Achievements
- Established an ESG Executive Steering Committee reporting to the Board of Directors
- Developed a comprehensive Diversity & Inclusion Strategy
- Implemented a robust data privacy and security program aligned with NIST framework
- Developed and published an Enterprise Human Rights Policy
Climate Goals & Targets
Medium-term Goals:
- Reduce power consumption intensity by 20% by 2030
- Secure 10% of purchased electricity from renewable sources by 2030
- Achieve an 80% diversion rate for operational waste by 2030
- Ensure 90% of PFG branded beef, pork, poultry, seafood, coffee and tea are produced with verified environmentally sustainable and socially responsible practices by 2025
- Conduct an ESG Supplier Survey with 95% of suppliers of PFG branded products by 2022
- Develop an environmentally preferable purchasing program for PFG branded non-food products by 2023
Short-term Goals:
- Establish an enterprise-wide carbon reduction target by 2022
Environmental Challenges
- Climate change impacts on agricultural commodities and distribution
- Severe weather events disrupting operations and supply chain
- Changing consumer expectations and stricter regulatory frameworks
- Evolving macroeconomic trends
- Food waste generation
Mitigation Strategies
- Developed scenario plans for severe weather events
- Diversifying supply chain and monitoring food commodity risks
- Setting carbon reduction and renewable energy goals
- Implementing energy efficiency projects and route optimization
- Partnering with food banks to reduce food waste
- Expanding sustainable product offerings
Supply Chain Management
Supplier Audits: ESG Supplier Survey (95% target by 2022)
Responsible Procurement
- Supplier Code of Conduct
- Monitoring and verification of third-party certifications
Climate-Related Risks & Opportunities
Physical Risks
- Volatility in climate and weather patterns impacting agricultural commodities
- Severe weather events disrupting distribution
Transition Risks
- Changing consumer expectations
- Stricter regulatory frameworks
- Reliance on fossil fuels
Opportunities
- Expanding sustainable product offerings
- Renewable energy purchasing
Reporting Standards
Frameworks Used: SASB, TCFD
Sustainable Products & Innovation
- Green Origin plant-based protein products
- Braveheart & FarmSmart Meats
- Sustainable packaging options
Reporting Period: 2022-07-03 to 2023-07-01
Environmental Metrics
Total Carbon Emissions:161,824 MTCO2e (Scope 1 from refrigerants) + 909,111 (Scope 1) + 186,758 (Scope 2 location based) + 194,295 (Scope 2 market based)
Scope 1 Emissions:909,111 tCO2e
Scope 2 Emissions:381,053 tCO2e (location and market based combined)
Renewable Energy Share:<1%
Total Energy Consumption:488,431,122 kWh
Waste Generated:531,489,510 total waste pounds, 86% diverted from landfill
Carbon Intensity:1.20 (Scope 1 & 2 intensity)
ESG Focus Areas
- Environmental Stewardship
- Social Stewardship
- Governance
Environmental Achievements
- Reduced power consumption intensity by 12%
- Achieved 86% diversion rate for operational waste (seven years ahead of schedule)
- 94.5% of PFG branded beef, pork, poultry, seafood, coffee, and tea are produced with verified environmentally sustainable and responsible practices
Social Achievements
- Launched PFG’s inaugural Inclusion Council and initiated Associate Resource Groups (ARGs)
- Received a Top Workplaces Regional Award from the Richmond Times-Dispatch
- Increased charitable contributions by 17% to more than $5.7M
Governance Achievements
- Completed Code of Conduct and Whistleblower training for all associates with a 99% completion rate
- ESG strategies became a component of named executive officers’ annual Incentive Plan award
Climate Goals & Targets
Long-term Goals:
- Achieve net zero operational and value chain greenhouse gas emissions by 2050 or sooner
Medium-term Goals:
- Secure 10% of purchased electricity from renewable sources by 2030
- Reduce Scope 1 and Scope 2 GHG emissions by 30% by 2034
Short-term Goals:
- Reduce power consumption intensity by 20% by 2030
- Ensure 75% of non-food branded products include sustainable options by 2025
- Provide attribute transparency on 85% of PFG branded food items by 2030
Environmental Challenges
- Extreme weather events damaging distribution centers and disrupting supply chains
- Transition to low-carbon technologies for fleet
- Volatile fossil fuel prices
- Rising global temperatures threatening agricultural supply chains
Mitigation Strategies
- Enhancing facility resilience with stricter building codes, improved emergency response, and business continuity plans
- Monitoring and testing innovative transportation and refrigeration technologies
- Focusing on energy efficiency, renewable energy procurement, and waste reduction
- Establishing thresholds for single-source products and broadening supplier base
Supply Chain Management
Supplier Audits: 5% of manufacturer branded supplier partners were surveyed in FY23
Responsible Procurement
- Responsible sourcing program
- Preferred Purchasing Policy
- ESG Supplier Survey Program
- Business Partner Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Transition to low-carbon technologies
- Volatile fossil fuel prices
- Rising global temperatures
Opportunities
- Resource efficiency
- Renewable energy
- Sustainable products and services
Reporting Standards
Frameworks Used: SASB, TCFD
Sustainable Products & Innovation
- First Mark carryout containers
- PFG branded products with sustainable sourcing practices
Awards & Recognition
- Top Workplaces Regional Award
- Fortune 100 company
- Convenience Store News Category Captains Award
- Nebraska Diplomat’s 2023 Business of the Year
- Somerset- Pulaski County Chamber of Commerce 2022 Business of the Year