Climate Change Data

Environmental Metrics

ESG Focus Areas

• Hunger Relief
• Women's Health
• Military Support
• Community Engagement
• Associate Safety and Wellbeing
• Sustainable Supply Chain
• Environmental Sustainability (Energy, Water, Waste Reduction)
• Ethical Business Practices
• Corporate Governance
• Supplier Diversity

Environmental Achievements

• Reduced overall energy consumption in stores by 35.22% since 2000, equivalent to taking 336,791 cars off the road for a year.
• 31 of 37 manufacturing plants designated as “zero waste” facilities, keeping more than 98% of waste out of landfills.
• Customers and associates recycled more than 38 million pounds of plastic (bags & shrink wrap) in stores.
• Total carbon footprint decreased by 3.8% compared to 2014.

Social Achievements

• Donated food and funds equivalent to 276 million meals to local food banks and agencies.
• Annually donates $3 million for breast cancer research; additional $3 million raised from customers and associates in 2015.
• Donated nearly $15 million to the USO since 2009.
• Hired more than 7,500 veterans in 2015 and more than 35,000 since 2009.
• Donated nearly $52 million to local schools and organizations through Community Rewards.
• Reduced overall accident rate by 77.2% since 1995 (though a slight increase in 2015 is noted).

Governance Achievements

• Received a score of 95 out of 100 on the Corporate Equality Index.
• Company-sponsored health insurance plan now offers transgender benefits.

Climate Goals & Targets

Environmental Challenges

• 2015 saw a 1.7% increase in OSHA recordable injuries, coinciding with an influx of new associates.
• Managing a complex and dynamic food system with various social and environmental impacts across the supply chain.
• Reducing food waste and improving waste diversion from landfills.

Mitigation Strategies

• Increased safety efforts with new associates to return to a trend of continuous improvement.
• Implemented programs to address various aspects of the supply chain, including sustainable seafood, dairy, palm oil, conflict minerals, and flowers.
• Expanded enterprise-wide waste diversion initiative in all grocery stores, increasing food donations and recycling initiatives.

Supply Chain Management

Supplier Audits: More than doubled the number of social compliance audits from the prior year in 2015.

Responsible Procurement

• Vendor Code of Conduct requiring suppliers to meet legal and ethical standards; zero tolerance for human rights violations.
• Focus on sustainable sourcing for high-impact commodities (seafood, dairy, palm oil, flowers).
• 100% of dairy farms supplying raw milk to Kroger were enrolled in the F.A.R.M. program by the end of 2015.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3 guidelines

Certifications: Null

Third-party Assurance: Self-declared Level C

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Simple Truth® and Simple Truth Organic™ product lines.
• Antibiotic-free meats.

Awards & Recognition

• ENERGY STAR Partner of the Year Award
• Three EPA Food Waste Recovery awards
• Listed on the North American Dow Jones Sustainability Index
• Rainforest Alliance Supply Chain Partner of the Year

Environmental Metrics

ESG Focus Areas

• Zero Hunger
• Zero Waste
• Customer Satisfaction & Digital Innovation
• Health & Nutrition
• Food Access
• Community Engagement
• Talent Attraction & Retention
• Associate Health & Safety
• Energy & Emissions
• Water
• Responsible Sourcing
• Supply Chain Accountability
• Food Safety
• Sustainable Product Packaging

Environmental Achievements

• Achieved 77% waste diversion company-wide
• Achieved zero waste to landfill for 34 of 36 manufacturing plants
• Rescued 91.2 million pounds of food through the Zero Hunger | Zero Waste Food Rescue program
• Reduced electricity consumption in supermarkets by 38% since 2000
• Reduced refrigerant leaks by 10% in supermarkets in 2017

Social Achievements

• Directed $358 million in charitable donations to communities
• Donated 325 million meals to families in communities
• Created 10,000 new jobs in 2017
• Invested $500 million in associate wages, training, and development over three years
• Named one of the Healthiest 100 Workplaces in America

Governance Achievements

• 100% of relevant associates acknowledged the Policy on Business Ethics
• Established a new Supplier Hub for centralized supplier data management
• Introduced several new and updated governance documents (Statement on Human Rights, Responsible Sourcing Framework, Commitment to Phase out Neonicotinoids, updated Animal Welfare Policy and Sustainable Seafood Policy)

Climate Goals & Targets

Environmental Challenges

• Food waste in retail stores (73% going to landfill in 2017)
• Meeting ambitious Zero Hunger | Zero Waste goals
• Maintaining high safety standards across operations
• Ensuring responsible sourcing across a large and diverse supply chain

Mitigation Strategies

• Partnership with WWF to baseline food waste footprint and develop reduction strategies
• Implementation of Zero Hunger | Zero Waste Food Rescue program
• Continuous improvement in safety programs and training
• Social Compliance Audits of suppliers, Vendor Code of Conduct, Supplier Hub

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct
• Social Compliance Audits
• Sustainable sourcing commitments for seafood, palm oil, eggs, and other commodities

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Safe Quality Foods (SQF) Level 3 Standard (manufacturing plants)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 12: Responsible Consumption and Production
• SDG 3: Good Health and Well-being
• SDG 8: Decent Work and Economic Growth
• SDG 13: Climate Action
• SDG 14: Life Below Water
• SDG 15: Life On Land

Kroger's initiatives contribute to these goals through hunger relief, waste reduction, health and wellness programs, job creation, energy efficiency, sustainable seafood sourcing, and sustainable sourcing commitments

Sustainable Products & Innovation

• Simple Truth® and Simple Truth Organic® products
• BLOOM HAUS™ flowers

Awards & Recognition

• ENERGY STAR Partner of the Year Award
• U.S. Dairy Sustainability Award
• Numerous other awards for community engagement, employee health, and sustainability initiatives

Environmental Metrics

ESG Focus Areas

• Zero Hunger | Zero Waste
• Climate Impact
• Food Safety
• Associate Health & Safety
• Diversity, Equity & Inclusion
• Responsible Sourcing
• Supply Chain Accountability
• Data Privacy & Cybersecurity

Environmental Achievements

• Achieved 47.4% cumulative annual electricity savings in supermarkets against a 2000 baseline
• Achieved 80% waste diversion rate (2018: 76%)
• Reduced plastic resin in packaging for Kroger-manufactured products by 10.1 million pounds between 2015 and 2019
• Achieved 5.6% water savings in supermarkets from a 2015 baseline

Social Achievements

• Directed 493 million meals in food and funds to communities in 2019; exceeded three-year goal to donate 1 billion meals
• Improved the nutritional balance of surplus food donated through Zero Hunger | Zero Waste Food Rescue
• Achieved record employee retention in 2019, improving retention rate by nearly 5% from the prior year

Governance Achievements

• Increased diverse spend by more than 10% annually for the last three years, reaching $3.39 billion in 2019
• Earned a perfect score on the 2020 Corporate Equality Index
• Zero product recalls for Kroger-manufactured Our Brands items in 2019

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic
• Increasing consumer interest in sustainable products and packaging
• Managing food waste across the value chain
• Maintaining food safety standards across operations

Mitigation Strategies

• Strategic investments in Restock Kroger plan, including alternative shopping modalities
• New 2030 Sustainable Packaging Goals to achieve 100% recyclable, compostable and/or reusable packaging for Our Brands products
• Zero Hunger | Zero Waste Food Rescue program to donate surplus food
• Company-wide Risk Mitigation Strategy to ensure food safety compliance

Supply Chain Management

Supplier Audits: Social compliance audits for all Our Brands (food and non-food products) and unbranded products processed at facilities outside the United States; approximately 17% of audits resulted in approved facilities.

Responsible Procurement

• Vendor Code of Conduct
• Animal Welfare Policy
• No-Deforestation Commitment for Raw Material Sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Business impacts of rising and more variable temperatures

Transition Risks

• Future legislation mandating reduced refrigerant emissions
• Market shifts towards electric vehicles

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 12: Responsible Consumption and Production

Kroger’s Zero Hunger | Zero Waste social impact plan aligns with SDGs 2 and 12.

Sustainable Products & Innovation

• Simple Truth® and Simple Truth Organic® product lines
• Simple Truth® Emerge plant-based meat alternative line

Awards & Recognition

• 2012 Black Pearl Award for “corporate excellence in food safety and quality”
• Company of the Year for Corporate Equality by the Human Rights Campaign (HRC)’s Greater Cincinnati Chapter
• Ranked fourth on The Wall Street Journal’s list of the top 20 most diverse Fortune 500 companies

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Systems

Environmental Achievements

• Reduced total carbon emissions (Scope 1 and 2, market-based) by 11.6% from 2019 to 2020.
• Achieved a 10% reduction in refrigerant leak rate in stores.
• Donated 90 million pounds of food through the Zero Hunger | Zero Waste Food Rescue program.
• Improved food waste diversion from landfill to 48.3% in 2020.

Social Achievements

• Invested more than $2.5 billion to support associates during the pandemic, including $1 billion for pension security.
• Provided COVID-19 testing, vaccinations, and telehealth services.
• Launched the Framework for Action: Diversity, Equity & Inclusion.
• Increased annual spend with diverse suppliers to $4.1 billion.

Governance Achievements

• Implemented a new onboarding solution, A Fresh Welcome, for associates.
• Enhanced data privacy and security measures.
• Launched a new recycling program in partnership with TerraCycle.

Climate Goals & Targets

Environmental Challenges

• Pandemic-related disruptions in surplus food recovery and supply chains.
• Increased hiring and turnover impacting OSHA injury rates.
• Climate change risks to operations and supply chain.

Mitigation Strategies

• Implemented additional safety and cleaning procedures in stores and facilities.
• Developed Sharing What We’ve Learned: A Blueprint for Businesses.
• Conducted qualitative and quantitative risk assessments for climate-related risks.
• Maintained more than 200 business continuity plans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct
• Responsible Sourcing Framework
• Social Compliance Program Requirements
• Risk-based approach to supplier selection and monitoring.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation
• Drought
• Heat stress

Transition Risks

• Impacts of legislation

Opportunities

• Energy efficiency improvements
• Renewable energy adoption

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD framework

Certifications: Safe Quality Food Institute standards (manufacturing facilities), ENERGY STAR (821 stores)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Simple Truth® brand
• Simple Truth Plant Based® platform
• Private Selection® brand
• Plant-based alternatives

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Systems

Environmental Achievements

• Reduced GHG emissions by 9.1% from 2018 baseline (Scope 1 and 2, market-based)
• Achieved 48.8% food waste diversion from landfill in Kroger retail stores
• 79% waste diversion from landfill company-wide

Social Achievements

• Directed 2.3 billion meals to improve food access in communities since 2017
• Invested $1.2B in associate compensation and benefits since 2018
• Annual spend with diverse-owned suppliers reached $4B

Governance Achievements

• Refreshed membership and charters for several board committees to clarify ESG oversight
• Implemented a comprehensive risk-based management approach to food and product safety
• Conducted first quantitative climate risk assessment

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic and conflict in Ukraine
• Increased Scope 1 emissions due to improved data collection and refrigerant transitions
• Increased Scope 3 emissions due to increased employee commuting and business travel

Mitigation Strategies

• Maintaining business continuity plans to manage physical climate risks
• Implementing energy efficiency and energy reduction projects
• Increasing procurement of renewable energy

Supply Chain Management

Supplier Audits: See report for details on social compliance audits and findings.

Responsible Procurement

• Vendor Code of Conduct
• Responsible Sourcing Framework
• Supplier Diversity & Inclusion Program
• Human Rights Policy
• Animal Welfare Policy
• No Deforestation Commitment

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Extreme heat
• Extreme precipitation
• Natural disasters
• Business disruptions

Transition Risks

• Refrigerant legislation
• Changing consumer expectations
• Evolving stakeholder expectations

Opportunities

• Development of energy-efficient products
• Increased procurement of renewable energy
• Reduced operating costs from emissions reduction

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD framework

Certifications: Safe Quality Food Institute standards

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Upcycled grains
• Carbon-neutral eggs
• Carbon-reduced chicken
• Simple Truth® plant-based products
• Simple Truth® and Kipster carbon-neutral, cage-free eggs

Awards & Recognition

• 2022 American Pharmacists Association Immunization Champion Award (Kroger Health)
• #1 ranking in Grocery & Drug sector in The Loyalty Report™ 2022 (Kroger Plus loyalty program)
• Newsweek recognition for one of America’s Best Loyalty Programs (Kroger Plus)

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Systems

Environmental Achievements

• Reduced GHG emissions by 15.2% from a 2018 baseline.
• Achieved 100% retail store participation in food rescue program.
• Reduced retail food waste by 26.2% since 2017.
• Sourced 95% of wild-caught seafood from MSC-certified fisheries or equivalent.

Social Achievements

• Donated 600 million meals to communities.
• Invested $1.9 billion in associate wages and benefits since 2018.
• Increased average hourly wage to over $18, over $23.50 including benefits.
• Achieved 100% completion rate for Personal Safety training.

Governance Achievements

• Completed third materiality assessment aligned with double materiality principles.
• Updated Kroger Vendor Code of Conduct.
• Introduced a new customer-facing Privacy Center.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to inflation and macroeconomic uncertainty.
• Supply chain disruptions due to avian influenza.
• Industry-wide challenges in transitioning to higher-welfare animal housing systems.
• Continued challenges in achieving higher food waste diversion rates.

Mitigation Strategies

• Developed new price point brand (Smart Way) and expanded Kroger Delivery platform.
• Optimized Zero Hunger | Zero Waste Food Rescue program and implemented new de-packaging solutions.
• Developed a roadmap for transitioning to higher-welfare laying hen housing systems.
• Implemented automated solutions to track waste management program impacts.

Supply Chain Management

Supplier Audits: See report for details on social compliance audits.

Responsible Procurement

• Kroger Vendor Code of Conduct
• Supplier Hub centralized vendor management system
• Social Compliance Program

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Extreme heat
• Extreme precipitation

Transition Risks

• Refrigerant legislation
• Changing consumer preferences

Opportunities

• Development of energy-efficient products and processes
• Expansion of renewable energy sources

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Safe Quality Food Institute

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Simple Truth® + Kipster carbon-neutral eggs
• Products with upcycled ingredients

Awards & Recognition

• Congressional Hunger Center Hunger Leadership Award
• American Pharmacists Association Immunization Champion Award
• SEAL Business Sustainability Award
• Best Places to Work for Disability Inclusion

Environmental Metrics

ESG Focus Areas

• Food & Product Access & Affordability
• Health & Nutrition
• Talent Attraction, Engagement & Retention
• Energy & GHG emissions
• Operational waste
• Food waste
• Food safety
• Responsible Supply Chain & Sourcing

Environmental Achievements

• -12% cumulative reduction in Scope 1 & 2 greenhouse gas emissions since 2018
• 82% company-wide waste diversion from landfill
• 52% of retail store food waste diverted from landfills
• 96%+ alignment of Seafood Department volumes with each seafood sustainability goal element
• 94%+ alignment of palm oil, beef, soy and paper volumes sourced for manufacturing plants and meat counter with no- or low-deforestation risk definitions

Social Achievements

• $500M invested in lower prices for customers
• $500M invested in our associates’ wages and benefits
• 700+ new affordable, quality Our Brands items introduced
• 455M meals donated for local hunger relief
• $329M in total charitable giving for our communities
• 100% of retail stores actively donating surplus fresh food

Governance Achievements

• Zero recalls for Kroger-manufactured Our Brands products in 2023
• Improved company-wide safety performance in 2023 (7.2% decline in OSHA reportable injuries)
• Enhanced pay equity analysis methodology in 2023
• Expanded collaboration with justice-impacted organizations through New Beginnings program

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and 2 GHG emissions in 2023 due to factors including increased Kroger Delivery routes and transition to lower GWP refrigerants.
• Increased food waste generated in 2023 due to changes in retail cut-fruit program.
• Challenges in achieving SBTi-aligned targets due to complexity of Scope 3 emissions calculation and management, particularly for FLAG emissions.
• Challenges in phasing out single-use plastic bags due to differences in state and local regulations.

Mitigation Strategies

• Implementing projects to reduce energy consumption (LED lighting, glass doors on refrigerated cases).
• Transitioning to lower-GWP refrigerants and optimizing leak detection systems.
• Implementing dynamic markdown systems for faster sale of fresh items.
• Expanding food waste recycling programs (anaerobic digestion, de-packaging solutions).
• Conducting pilots to test bag alternatives and incentives to reduce single-use plastic bags.

Supply Chain Management

Supplier Audits: See report for details on social compliance audits and other assessments.

Responsible Procurement

• Kroger Vendor Code of Conduct
• Seafood Sustainability Policy
• No-Deforestation Commitment
• Goal to Protect Pollinators & Biodiversity
• Animal Welfare Policy

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Extreme heat
• Extreme precipitation

Transition Risks

• Regulatory changes regarding refrigerant use

Opportunities

• Energy efficiency improvements
• Renewable energy adoption

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: Safe Quality Food Institute

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Simple Truth® plant-based products
• Simple Truth® + Kipster eggs
• Kroger Mercado Hispanic-inspired brand

Awards & Recognition

• Newsweek Most Trustworthy Companies
• Axios Harris Poll 100
• Disability:IN Best Places to Work for Disability Inclusion
• SEAL Business Sustainability Award
• Progressive Grocer Impact Awards