Climate Change Data

Environmental Metrics

ESG Focus Areas

• Saving Customers Money
• Providing Affordable Quality Food
• Giving Back
• Providing Opportunities for IOs
• Providing Opportunities for Employees
• Reducing Food Waste
• Improving Operational Efficiency

Environmental Achievements

• 98%+ of stores use timed lighting and heating systems to lower energy consumption
• 17% of stores use cloud-based refrigeration analytics to reduce energy use and refrigerant leak rates
• Upgraded forklifts in RFCs to electric models and began using electric yard tractors
• Consolidated and streamlined store deliveries to reduce transportation emissions
• Deployed data analytics tools to improve refrigerant management and reduce leak rates

Social Achievements

• Donated 1.25 million meal equivalents through Independence from Hunger
• 90%+ participation in first annual employee engagement survey
• 53% of employees at Director level or above are women or racial/ethnic minorities
• 50 new IOs given entrepreneurial opportunities
• Launched free, app-based mental health support

Governance Achievements

• Conducted first ESG Materiality Assessment
• Board oversight of sustainability efforts
• Implemented controls in line with ISO standards and NIST framework for cybersecurity

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions from independently operated stores represent a significant portion of the company's total emissions.
• Data limitations in tracking food waste diversion and donations.

Mitigation Strategies

• Exploring the feasibility of sourcing renewable electricity
• Developing metrics to demonstrate the scale of food waste diversion
• Exploring methodologies to better track food donations from RFCs and IOs

Supply Chain Management

Responsible Procurement

• Opportunistic sourcing model to reduce food waste
• Longstanding relationships with leading brands

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: EPA GreenChill (several stores)

Environmental Metrics

ESG Focus Areas

• Community
• People
• Planet
• Governance

Environmental Achievements

• Discontinued printed advertisement circulars in 2023
• Over 84% of stores have eliminated single-use plastic bags
• 98%+ of stores have timed heating and lighting controls to lower energy consumption when unoccupied
• 100% of stores use an Energy Management System (EMS) to gain control and visibility over energy use
• 33% of stores currently use cloud-based refrigeration analytics to reduce energy use and refrigerant leak rates

Social Achievements

• Donated $3.9M+ to community through Independence from Hunger (equivalent of approx. two million meals)
• Supported 4475 Independent Operators
• Created 44 entrepreneurial opportunities in new and existing stores
• 90%+ employee participation in annual engagement survey
• 55% of employees at Director level or above are women or racial/ethnic minorities
• Provided $280,000 in grants to 81 members of the Grocery Outlet family through the Touching Lives Foundation
• Average mature IO net income exceeded $250,000

Governance Achievements

• 8 of 10 independent directors on the Board
• 1 of 3 Board Committees chaired by women
• 3 of 10 female directors
• 1 of 10 ethnically diverse directors
• Conducted an annual assessment of climate-related risks
• Undertook first climate-related scenario analysis exercise

Climate Goals & Targets

Environmental Challenges

• Increased food insecurity in the US
• Increased inflation in grocery and restaurant food prices
• Managing climate-related risks (physical and transition)
• Managing Scope 3 emissions (particularly from IO stores and product inventory)

Mitigation Strategies

• Opportunistic buying model to reduce food waste and offer affordable prices
• Independence from Hunger initiative to combat food insecurity
• Energy-saving measures in stores (timed lighting, efficient refrigeration)
• Partnerships with sustainable suppliers
• Data analytics tools to improve refrigerant management
• Consolidating and streamlining store deliveries to reduce transportation emissions
• Initiatives to reduce emissions across several categories (e.g., electric forklifts, yard tractors)

Supply Chain Management

Responsible Procurement

• Partnerships with suppliers with defined ESG programs (e.g., Camanchaca, OK Produce)
• Requirements for suppliers to comply with all applicable laws

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Tornadoes
• Temperature variability
• Sea level rise
• Coastal flooding

Transition Risks

• Regulatory changes
• Market shifts
• Technological changes

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: EPA GreenChill (several stores)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Grocery Outlet's ESG strategy aligns with these SDGs through initiatives such as affordable food access, entrepreneurial opportunities for IOs, food waste reduction, and energy efficiency measures.

Sustainable Products & Innovation

• Private label program (launching in 2024) with planned sustainable attributes (sustainable sourcing, reduced packaging, recyclability)