Shake Shack Inc.
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:26,489.55 tCO2e/year
Scope 1 Emissions:2,134.20 tCO2e/year
Scope 2 Emissions:14,355.35 tCO2e/year
ESG Focus Areas
- Environmental Responsibility
- Social Impact
- Corporate Governance
Environmental Achievements
- Completed first Scope 1 & 2 emissions reporting, totaling 26,489.55 mtons CO2e (market-based: 26,349.55 mtons CO2e).
- 30% of Shacks opened in 2021 saw a 20% year-over-year reduction in Kitchen Exhaust System energy usage.
- 1.75 million pounds of waste oil recycled.
- Increased burger case pack size, reducing cardboard usage by over 1,000 pounds weekly.
Social Achievements
- Launched two custom DEI courses for all team members.
- Launched two additional cohorts of Shift Up leadership development program.
- Created a new Employee Resource Group focused on the AAPI community.
- Raised nearly $250,000 in direct financial contributions for various causes.
- Executed five Stand Together Series events to drive diversity education and awareness.
- Expanded parental leave benefits.
- Disbursed over $84,000 in grants to team members from the HUG Fund.
- 2,835 internal promotions, with 56% going to women and 73% to people of color.
Governance Achievements
- Maintained a 100% score on the Human Rights Campaign Corporate Equality Index for the fourth year in a row.
- Implemented robust oversight by the Board, consistent with Board and committee charters.
- Established corporate policies and charters including Code of Business Conduct and Ethics, Global Anti-Corruption Compliance Policy, etc.
Climate Goals & Targets
Medium-term Goals:
- Sourcing 100% cage-free eggs for global supply chain by 2025.
Short-term Goals:
- Continue monitoring progress and reducing environmental impact (GHG emissions, water usage, etc.).
Environmental Challenges
- Managing the impact of the global COVID-19 pandemic.
- Reducing environmental impact of brick-and-mortar locations (energy, water usage, etc.).
Mitigation Strategies
- Enhanced cleaning and safety protocols.
- Leveraged contactless channels for food delivery.
- Implemented wage increases and sign-on bonuses.
- Investing in regenerative farming.
- Measuring Scope 1 & 2 emissions to inform future action plans.
Supply Chain Management
Responsible Procurement
- Sourcing premium ingredients from like-minded suppliers; antibiotic- and hormone-free proteins; cage-free eggs; non-GMO buns; real cane sugar; regeneratively farmed beef.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Greenhouse Gas Protocol
Third-party Assurance: Schneider Electric LLC (for Scope 1 & 2 emissions); HowGood (for sustainability impact measurement)
Sustainable Products & Innovation
- Non-dairy chocolate shake and frozen custard (in testing)
Awards & Recognition
- 100% score on Human Rights Campaign Corporate Equality Index (four years in a row)