2024 Environmental, Social & Governance Report
We are pleased to share the Kroger
Family of Companies’ latest progress
on sustainability and community
impact for the 2023 reporting period
with our stakeholders.
Kroger’s Thriving Together strategy reflects how our
company supports and serves our associates and
customers every day, lifting up our neighbors and
creating stronger communities.
Our strategy includes a wide range of topics affecting
people and our planet. Informed by a double
materiality assessment and ongoing engagement with
leaders inside and outside our company, these insights
help shape our approach and progress as outlined in
this report.
Our Thriving Together strategy continues to evolve
over time to complement and integrate with Kroger’s
core business and go-to-market strategy. We believe
a strong, thriving company means stronger, thriving
communities wherever we operate.
Strategic Oversight
The Board of Directors oversees Kroger’s
management approach to our environmental,
social and governance (ESG) strategy and topics.
A dedicated Public Responsibilities Committee of
the board—established in 1977—engages leaders and
reviews progress on the company’s sustainability
and social impact goals, including our Zero Hunger |
Zero Waste plan.
Welcome to Our Report
2
Introduction
3
Message from Our Chairman & CEO
9
Our Approach
12
Thriving Together
Strategy
13
Zero Hunger | Zero Waste Impact Plan
15
2023 Progress Highlights
18
People
20
Our Associates
27
Our Customers
31
Our Communities
35
Planet
37
Climate Impact
42
Waste & Circularity
48
Biodiversity & Resource Conservation
52
Governance
53
Corporate Governance
60
Responsible Supply Chain & Sourcing
67
Appendix
68
Key Performance Data Tables
72
Material Topics Summary
74
TCFD Index
75
SASB Index
77
2023 Supplemental Data Tables
Contents
Kroger’s executive leadership team is accountable for
operationalizing and driving performance to achieve
goals. Sustainability and social impact priorities
are developed and managed by a centralized team,
led by Kroger’s group vice president of Corporate
Affairs, who serves as chief sustainability officer,
and in collaboration with an internal network of
business leaders and subject matter experts across
many disciplines.
Report Scope
This report covers Kroger’s 2023 fiscal year from
January 29, 2023, to February 3, 2024. Unless
otherwise noted, data included in the report reflects
this period. The report incorporates most of our
operations, except for certain datasets related to
integrating banners from mergers into our tracking
systems. Where appropriate, we note the scope
of specific performance tracking in the relevant
report section.
Reporting Approach
The content in this report reflects leading reporting
practices with modifications, as noted above and
in the pages that follow. Our approach to defining
content reflects insights from our double materiality
assessment in 2023.
We continue to monitor and contribute to developments
in reporting standards and best practices. We provide
a Sustainability Accounting Standards Board (SASB)
Index at the end of this report to provide additional
disclosures in alignment with the SASB Food Retailers
& Distributors Standard.
We will comply with any applicable federal and state
laws, including future reporting requirements of the
U.S. Securities and Exchange Commission (SEC)
and the state of California. We continue to align
with the Task Force on Climate-related Financial
Disclosures (TCFD) framework, and we are monitoring
developments in other emerging frameworks
like the Task Force on Nature-related Financial
Disclosures (TNFD).
People
Our Approach
Planet
Appendix
Governance
Introduction
2024 Kroger ESG Report
2
I’m so inspired by what Kroger and
our associates accomplished in 2023
and optimistic about our future.
When Barney Kroger opened his first store on the
banks of the Ohio River in 1883, he could not have
imagined what the company would become today.
While the way our customers shop is ever-changing,
one thing remains the same—Kroger’s commitment
to taking care of our customers, our associates and
our communities. And this commitment is grounded
in Our Purpose—To Feed the Human Spirit™.
Serving Our Communities
Kroger has a long-standing history of striving to
be deeply connected to the communities we serve.
We see this coming to life by including more local
products on our shelves, donating surplus food
to food banks and finding new ways to run our
business that ensure our food system and supply
chain is secure for years to come.
Our store teams know our communities better than
anyone, and we work to give back in big and small
ways. We are among the first to provide food and
essentials after a natural disaster. We work with
leaders to expand access to fresh food and provide
pathways for associates to improve their future
through a career at Kroger. We have the products
we know families want, need and love, and our
friendly associates are always available to help
make dinnertime a little easier.
We are determined to
continue growing so we
can feed more people,
create a cleaner, healthier
planet, and strengthen
communities together.”
Message from
Rodney McMullen
We also consider how our work impacts communities
around the world. To do this, we manage a wide range
of important topics affecting people, nature and our
global supply chain.
Our Impact Plan
In 2023, the Kroger team achieved progress on
important goals for sustainability and social impact,
maintained high operating standards, and engaged
suppliers and others to advance positive impact.
Kroger’s Zero Hunger | Zero Waste impact plan sits
at the center of our strategy. It expresses our mission
to end hunger and waste in our communities. With a
clear call to action, our associates across the company
continue to drive progress on our impact plan year
after year. We remain focused on a core set of
ambitious goals to create a better future.
This work is complex, challenging and incredibly
rewarding. We are determined to continue growing so
we can feed more people, create a cleaner, healthier
planet, and power thriving communities together.
Rodney McMullen,
Kroger Chairman and CEO
People
Our Approach
Planet
2024 Kroger ESG Report
3
Appendix
Governance
Introduction
Our Family of Companies
About Kroger
Honesty
We insist on truthfulness with each other,
with our customers, with our vendors
and in our business records. We expect
and value openness.
Inclusion
We encourage and expect collaboration,
teamwork and the active involvement of
all associates.
Integrity
We act in accordance with Our Values,
even when it’s difficult.
Diversity
We seek and embrace differences in the
backgrounds, cultures and ethnicities of
all associates, customers and vendors.
Safety
We protect our customers and each
other from injury with a safe and secure
workplace and shopping environment.
Respect
We treat all with dignity and value the
opinions and perspectives of others.
In fulfilling Our Purpose—To Feed the
Human Spirit—we live by Our Values:
MARKETING
Since Kroger’s earliest days, we have
prioritized offering convenience and
value to our customers. We remain
focused on our purpose-driven
strategy to increase access to quality,
affordable fresh food for everyone.
Our Values
People
Our Approach
Planet
2024 Kroger ESG Report
4
Appendix
Governance
Introduction
Our Bu
sines
s
K = thousand | M = million | B = billion
$150B
total 2023 sales
2,722
grocery and multi-department
stores in 35 states and the District
of Columbia
distribution centers
33
Kroger-owned food
production plants
62M
loyal households
served annually
8
Kroger Delivery
fulfillment centers
420K
44
associates company-wide
2,257
pharmacies
People
Our Approach
Planet
2024 Kroger ESG Report
5
Appendix
Governance
Introduction
Key Highlights
$5B
invested in
lower prices for
our customers
since 2003
25%
increase in food waste recycling
rate in stores, from 27% (2017)
to 52% (2023)
700M
pounds of surplus fresh food donated
to our communities since 2017
$3.6B
in sourcing with diverse suppliers
to expand product assortment for
our customers
$2.3B
in charitable giving to our
communities since 2017
3.4B
meals donated to
our communities
since 2017
100%
of retail stores
actively donating
surplus fresh food
Kroger makes grocery shopping easy, convenient and affordable
for our customers every day. Dedicated associates across the
country live Our Purpose and Zero Hunger | Zero Waste mission,
giving back meaningfully to make a difference in our communities.
-12%
cumulative reduction
in Scope 1 & 2
greenhouse
gas emissions
since 2018
$2.4B
invested in our
associates’
wages and
comprehensive
benefits since 2018
65
total number of fishery
improvement projects to
improve seafood sustainability
supported by Kroger since 2009
People
Our Approach
Planet
2024 Kroger ESG Report
6
Appendix
Governance
Introduction
Our Value Chain
Kroger serves our communities with a combination
of local neighborhood grocery stores and online
grocery solutions to meet our customers’ needs—
anything, anytime, anywhere. Working with our
suppliers and others, we aim to responsibly buy,
make, move and sell a wide range of food and other
essentials for individuals and families on any budget.
We focus on offering affordable products that meet our
customers’ wide-ranging tastes and preferences.
Our Supply Chain
Sourcing
We procure raw materials and ingredients
for food processing that meet food safety,
quality and sustainability specifications;
fresh items from farmers, fishers and
other producers; and finished goods from
manufacturers in our global supply chain.
Kroger also manages indirect sourcing
for the services, technology and supplies
needed to run our business. We use
a centralized team and Supplier Hub
to manage supplier engagement and
compliance with established policies.
Manufacturing
We manufacture 30% of
Our Brand
s units
at 33 Kroger-owned food processing
plants across the country. The remaining
Our Brands
items are produced to
our strict specifications by outside
manufacturers.
Our food production plants include 14
dairies, nine deli or bakery plants, five
grocery product plants, two beverage
plants, one meat plant and two
cheese plants.
We have four $1 billion+ brands in our
portfolio: Kroger®, Private Selection®,
Simple Truth® and Home Chef®.
Distribution
A Kroger-operated fleet and third-party
operators move our products from food
processing plants to warehouses for
transport to our stores, or to dedicated
fulfillment centers for delivery to our
customers’ homes. Consumer packaged
goods companies also deliver
Our Brand
s
products and national brand products to
warehouses or directly to our stores.
Our Brand
s products play an important
role in our merchandising strategy and
represented over $31 billion in sales in
2023. Our supermarkets, on average,
stock over 12,600 private-label items.
Retail
Customers shop with us at neighborhood
stores and online through our seamless
ecosystem that fulfills orders through
curbside pickup; direct-to-home delivery
through fulfillment centers and Instacart;
and ship-to-home services.
In-store pharmacies and health clinics
offer convenient access to medications,
health services and dietitian support.
We also operate 1,665 fuel centers and an
expanding network of electric vehicle (EV)
charging stations.
Households
Providing affordable, high-quality fresh
food for more than 62 million households is
Kroger’s highest priority. Our insights team
at 84.51° combines customer transaction
information and publicly available data
to provide personalized offers that drive
higher-than-average redemption, loyalty
and trust among shoppers.
We aim to provide easy ways for our
customers to live healthier and more
sustainable lifestyles. We seek customer
feedback through in-store service counters,
surveys, focus groups, websites and social
media, as well as Kroger Customer Connect,
our live call center.
Our Operations
Our Customers
K = thousand | B = billion
60K+
vendors and suppliers
work with us
30%
of total
Our Brands
units sold and 43%
of food items manufactured by Kroger
15K+
private-label items in the
Our Brands
portfolio
35 states
+
District of Columbia
with Kroger-operated retail stores
4B
digital offers clipped by
customers last year
People
Our Approach
Planet
2024 Kroger ESG Report
7
Appendix
Governance
Introduction
Our
Go-to-Market
Strategy
Kroger’s go-to-market strategy
is built on a foundation of four
key concepts: fresh,
Our Brands
,
seamless and personalization—
with customers at the core.
Fresh
As an important influence on where customers shop, we
are consistently improving our approach to bring fresher
foods to our customers, and customers are noticing
our improved Fresh experience. At nearly 2,100
stores implementing a new End-to-End Produce
program, we see higher sales in the Produce
department and across the entire store. Our
Supply Chain and Technology teams are
focused on finding more efficient ways to
move fresh items and deliver additional
days of freshness to each customer.
Our Brands
Kroger’s extensive
Our Brands
private-
label product portfolio offers exciting
quality items at a great value. The team is
always looking for unique, interesting items
to bring to our shelves—from our newest
opening price point brand Smart Way
®
to our indulgent Private Selection® brand
and popular Simple Truth
®
free-from items.
We know even the pickiest eaters will find
an
Our Brands
item they love.
Personalization
Our top data scientists are committed to serving
customers the right promotions at the right time
to create the best value. We save our customers
money on the products we know mean the
most to their families, which is particularly
important during periods of inflation and
economic uncertainty.
P
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Seamless
Even as customer shopping behaviors
continue to evolve, customers crave
convenience across everything they
do, including grocery shopping. Kroger’s
ecosystem of stores, fulfillment centers
and third-party service providers ensures our
customers can access the fresh, affordable food
they need without compromising on selection or
convenience. From 30-minute delivery of need-it-now
items to a weekly stock-up shop or specialty items
delivered to their doorstep, we have the right mix of
solutions to serve any customer’s need.
C
U
S
T
O
M
E
R
O
B
S
E
S
S
I
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N
People
Our Approach
Planet
2024 Kroger ESG Report
8
Appendix
Governance
Introduction
Our
Approach
Kroger has a long history of operating responsibly and
growing in ways that serve our associates, customers
and communities. Today, Kroger’s operating model
and Thriving Together sustainability and social impact
strategy aim to advance positive impacts for people
and our planet.
In This Section
10
Material Topics
12
Thriving Together Strategy
13
Zero Hunger | Zero Waste Impact Plan
14
Zero Hunger | Zero Waste Progress
15
2023 Progress Highlights
16
Stakeholder Engagement
17
Recognition
People
Introduction
Planet
Appendix
Governance
2024 Kroger ESG Report
9
Our Approach
Material Topics
We completed Kroger’s latest
materiality assessment in 2023
in alignment with principles of
double materiality. Valuable insights
from this process and ongoing
engagement with our stakeholders
continue to inform our Thriving
Together strategy.
Double Materiality Assessment
Double materiality, the leading methodology for
assessments, evaluates topics relevant to companies
and is increasingly included in reporting guidelines and
frameworks. This approach contemplates two different
lenses through which material sustainability and social
topics can be viewed and disclosed, including:
•
Outward impact:
The potential impact of a
company’s activities on people, the environment and
the economy. For example, managing greenhouse
gas (GHG) emissions has an impact on our planet.
•
Inward impact:
Topics or matters that may affect a
company’s ability to operate and deliver business
value in the future. For example, changing weather
patterns and temperatures may pose potential risks
to the company’s business operations over time.
This is Kroger’s third formal materiality assessment
and the first aligned with double materiality principles.
We completed two previous materiality assessments
in 2018 and 2020, with findings shared publicly in
Kroger’s annual ESG reports and online resources. We
will consider updating our latest materiality assessment
in 2026.
Determining Material Topics
We determined relevant topics by reviewing the
priorities of key stakeholders through ongoing dialogue,
sustainability reports, sustainability ratings and rankings,
reporting frameworks, industry reports, consumer
surveys and media scans. The result was a list of 26
topics identified for further assessment. We identified
boundaries for each topic based on stakeholder
expectations and our management practices.
To prioritize these topics and apply the Stakeholder
Inclusiveness Principle outlined in the GRI Standards,
consultant Environmental Resources Management
(ERM) conducted in-depth interviews with 32 internal
and external stakeholders. We invited approximately
60 additional subject matter experts and stakeholders
to complete a quantitative online survey. Based
on these insights, we prioritized eight topics as
most “material,” or foundational to our business or
presenting higher levels of risk or opportunity.
High-priority topics were discussed and validated
through a series of meetings with internal leaders
and the Public Responsibilities Committee of the
board. The validated topics shaped the content of this
report, detailing our management approach, goals
and performance. Topic placement on the matrix and
changes over time also may inform the company’s
management approach.
Topic prioritization
Topic ranking, summary report
Double Materiality Assessment Process
Assess outward impact
Value chain mapping, external
stakeholder engagement
Assess inward impact
Internal & external
stakeholder engagement
Validation
Leadership engagement & review,
validation workshop
Discovery
Source review, trends analysis,
defined topic list
People
Introduction
Planet
2024 Kroger ESG Report
10
Appendix
Governance
Our Approach
Local Communities
Data Privacy & Cybersecurity
Agricultural Practices
Talent Attraction,
Engagement & Retention
Waste & Circularity
Food Waste
Food & Product
Access & Affordability
Outward impact:
Kroger’s Impact on People and Planet
Increasing importance to external stakeholders
Energy & GHG Emissions
Food Safety
Responsible Supply Chain & Sourcing
Health & Nutrition
Labor Relations
Employee Health, Safety & Well-Being
Diversity, Equity
& Inclusion
Human Rights
Water
Biodiversity & Conservation
Climate Change Resilience
Public Policy Practices
Animal Welfare
Marketing Practices
& Product Labeling
Corporate Governance
Business Ethics & Compliance
Customer Experience
Non-Food
Product Safety
Retail Security
2023 Material ESG Topics
Tier 3
Tier 2
Tier 1
About the Results
The output of the double materiality assessment can
be characterized in a few main takeaways. Highest
priority topics—in the Tier 1 segment in the matrix
at right—extend across all three pillars of Kroger’s
Thriving Together strategy:
•
Topics affecting people:
Food & product access &
affordability; health & nutrition; and talent attraction,
engagement & retention
•
Topics affecting our planet:
Energy & GHG
emissions, operational waste and food waste
•
Governance topics:
Food safety, data privacy
& cybersecurity, and responsible supply chain
& sourcing
These findings generally align with the company’s
strategic focus areas while providing additional
validation and insights.
This year, we removed the classification of topics as
specifically environmental, social or governance. This
reflects the complexity and interconnectedness of
material topics and potential impacts to both people
and our planet. We have learned it is difficult to
categorize some topics; in fact, many require a more
integrated and cross-functional management approach.
Strong and evolving governance is an important part
of our approach to managing material topics and
operating responsibly.
Topic Placement
The matrix represents the two types of impact
associated with each ESG topic. Topics are positioned
on the matrix according to relative degree of impact,
which reflects both internal and external perspectives.
A high rating on the X axis (inward impact) means a
topic may pose a higher degree of risk or opportunity
to Kroger and its ability to create value over time. A
high rating on the Y axis (outward impact) means that
Kroger’s business activities related to a topic may have
a higher degree of impact on people and our planet.
Topics at the top right of the matrix have the highest
degree of both types of impact and are strategically
important. All topics on the matrix are important;
however, these insights from both internal and
external stakeholders inform and shape Kroger’s
management approach, topic prioritization, potential
investment of resources and public reporting.
Please see the Material Topics Summary Table in the
Appendix for definitions and a link to the primary
narrative discussion for each.
Inward impact:
Impact of Topics on Kroger
Increasing importance to internal stakeholders
People
Introduction
Planet
2024 Kroger ESG Report
11
Appendix
Governance
Our Approach
Climate Impact
We manage energy
use and reduce GHG
emissions in our own
operations, and we
collaborate with others
to create a cleaner
energy future and a
healthier planet.
Waste & Circularity
Kroger aims to minimize
waste in our operations
and achieve our zero
waste ambition. We also
focus on improving
Our
Brands
packaging and
encourage our customers
to try more sustainable
product options.
Biodiversity & Resource
Conservation
We promote responsible
land use and more
sustainable production
methods to protect
pollinators, natural
habitats, and life on
land and in water.
Planet
Our Associates
We value our associates
because they are the
foundation of our
success. We create a
brighter future for our
associates by investing
in wages, industry-
leading benefits and
opportunities to learn,
grow and succeed.
Our Customers
We make it easy for our
customers to shop for
fresh, quality, affordable
food and other essentials.
Investing in lower
grocery prices, weekly
promotions, personalized
offers and rewards is
a key part of Kroger’s
business model.
Our Communities
We strengthen our
communities by offering
access to employment
and convenient ways
to shop, and by giving
back generously through
Kroger’s Zero Hunger |
Zero Waste impact plan
to end hunger and waste.
People
Our Purpose
To Feed the Human Spirit
Our Brand Promise
Fresh for Everyone™
Sustainability & Social Impact Strategy
Thriving Together
Impact Plan
Thriving
Together
Strategy
We imagine a future where
everyone is thriving together.
We build stronger communities
by growing our business,
operating responsibly and
advancing sustainability as
we grow.
We manage a broad portfolio of material topics
as part of our Thriving Together strategy, which
focuses on advancing positive changes for
people and our planet.
Kroger’s purpose-driven Zero Hunger |
Zero Waste impact plan sits at the center of
our strategy and expresses our mission to
end hunger and waste in our communities.
We believe everyone should have access
to affordable, healthy and sustainably
produced food for a brighter future.
We outline our primary focus areas for
Zero Hunger | Zero Waste here, and we
share our latest 2023 progress on the
following pages.
READ MORE ON PAGE 20
READ MORE ON PAGE 27
READ MORE ON PAGE 31
READ MORE ON PAGE 37
READ MORE ON PAGE 42
READ MORE ON PAGE 48
People
Introduction
Planet
2024 Kroger ESG Report
12
Appendix
Governance
Our Approach
Affordable Fresh Food
Nourishing Our Communities
•
Offer low grocery prices and feature promotions
on fresh, healthy food every day
•
Increase food access through our seamless digital
platform, available to virtually all customers,
and online payment through Electronic Benefits
Transfer (EBT)
•
Offer affordable Boost by Kroger Plus
membership options for more savings
on groceries, grocery delivery fees and fuel
•
Promote nutritional scoring and Better‑for‑You
options to improve health and well-being
Food Rescue & Donations
•
Use promotions and markdowns as food nears
use-by dates to make it even more affordable and
promote faster sale
•
Safely rescue remaining surplus fresh food for
made-in-store items or for donation to local
food agencies to improve food security in
our communities
Advocacy
•
Support public policy and legislative solutions
that improve access to food and food
assistance benefits
Meals
Stronger Communities
•
Donate fresh food and funds to support
local organizations that feed and nourish
our communities
•
Strategically align nonprofit foundation donations
to Zero Hunger | Zero Waste by prioritizing
programs that improve food security
•
Support organizations and innovators helping
increase access to affordable fresh food
•
Invite customers to round up their purchase
to the nearest dollar to benefit The Kroger Co.
Zero Hunger | Zero Waste Foundation to help
feed neighbors in need
New Solutions
•
Direct catalytic funding to entrepreneurs
with game-changing ideas to end hunger and
waste through the Zero Hunger | Zero Waste
Foundation’s Innovation Fund
•
Convene and join industry and other coalitions of
action focused on ending hunger and waste
•
Explore practical ways to use new technology
solutions to improve food security
Resource Conservation
Climate Impact
•
Reduce overall facility energy use and GHG
emissions for a cleaner, healthier planet
•
Divert unsold organics and food not eligible for
donation from landfills to reduce GHG emissions
•
Collaborate with others to reduce emissions from
agricultural production and our supply chain
Operational Waste & Food Waste
•
Improve facility waste management and recover
more recyclables to increase waste diversion
•
Maximize food waste recycling programs,
including animal feed, composting and anaerobic
digestion, and scale food de‑packaging solutions
Product Sustainability
•
Advance more sustainable agricultural production
methods that conserve resources and protect
pollinators, natural habitats and biodiversity
•
Support collaboration among food retailers and
other buyers to increase positive impact
Zero Hunger | Zero Waste Impact Plan
Kroger’s Zero Hunger | Zero Waste
impact plan sits at the center of
our
Thriving Together
strategy.
It’s our mission to end hunger and
waste in our communities and
make sure more fresh, nutritious
food achieves its highest purpose:
feeding people.
Our Zero Hunger | Zero Waste plan, introduced
in 2017, addresses a fundamental absurdity in our
food system: Collectively, we produce more than
enough food to feed everyone today, yet one
in eight Americans still struggle with hunger.
We focus on advancing change through our
core business and operating model, strategic
charitable giving, and coalitions of action with
our communities to improve food and nutrition
security, now and in the future.
Core Grocery Business
Sustainability
Social Impact
People
Introduction
Planet
2024 Kroger ESG Report
13
Appendix
Governance
Our Approach
114M
pounds of surplus
fresh food donated
We are grateful to countless community leaders, nonprofit
organizations and innovators working with Kroger to achieve our
mission. Together, we imagine a future without hunger and waste.
Zero Hunger | Zero Waste Progress
Our Zero Hunger | Zero Waste impact plan is designed
to advance positive changes wherever we operate. The
persistent problems surrounding hunger and waste are
complex and interconnected—at global, national and
local levels. We continue to focus on improving our
own operations and working with others in our value
chain to drive greater positive impacts in our local
communities and beyond.
With more than 140 years of experience in the food
business, Kroger is uniquely positioned to help solve
this big problem. We focus on:
• Making it easy for more people to shop for fresh,
affordable food
• Donating surplus fresh food to feed our neighbors
• Achieving zero waste and food waste in our
operations to keep waste out of landfills
• Reducing GHG emissions for a healthier planet
• Offering more sustainable
Our Brands
packaging
• Giving our customers easy ways to support our
mission and live healthier, more sustainable lifestyles
Key Highlights
Every day, Kroger associates live Our Purpose by
rescuing surplus food in our stores that can no
longer be sold and donating it to local hunger relief
organizations. Last year, our associates rescued
and donated 114 million pounds of food company-
wide. Thanks to these efforts and charitable cash
donations to hunger relief, we met and exceeded our
goal to donate 3 billion meals to our communities
more than two years ahead of schedule.
Reducing food waste is a big part of our
Zero Hunger | Zero Waste plan. Any surplus food
that cannot be safely donated to feed people goes
to food waste recycling programs like animal feed,
composting or anaerobic digestion. Since 2017, we
have reduced total food waste generated in stores
by 20% and improved food waste diversion from
landfills to 52%.
Reducing waste also means managing energy
use, minimizing GHG emissions and improving
Our Brands
packaging to be more recyclable,
reusable and compostable.
For more about our Zero Hunger | Zero Waste
impact plan, please see our website.
2023 highlights
Progress since 2017
$256M
in charitable giving to hunger
relief organizations in our
communities (food & funds)
100%
of stores donating surplus
fresh food to hunger relief agencies
3.4B
meals donated to
our communities
$1.5B
in charitable
giving to
end hunger
700M
pounds of surplus
fresh food donated
95%+
of stores participating in food
waste recycling programs
52%
retail food waste
diversion from landfills
455M
meals donated to
our communities
82%
operational waste
diversion from landfill
company-wide
People
Introduction
Planet
2024 Kroger ESG Report
14
Appendix
Governance
Our Approach
Goals & Metrics
2023
Status
Social Impact
Food Access & Affordability
Invest in lower prices for our customers to make groceries more affordable
$550M
Introduce new quality affordable
Our Brands
products
700+
Annual meals donated to our communities—food and charitable donations
455M
Donate 3 billion meals to communities by 2025 (2017 baseline)—food and donations
3.4B meals
Food Rescue Donations
Donate surplus fresh food from stores and facilities to our communities through Kroger’s
Zero Hunger | Zero Waste Food Rescue program
114M pounds
100% of retail stores actively donating surplus fresh food by 2025
100%
Aim for donations of fresh produce, deli and dairy items to be 45% of total food rescue
45%
Charitable Giving
Total annual charitable giving to our communities
$329M
Share of total charitable giving donated to national and local organizations helping end hunger
$256M
2023 Progress Highlights
Goals & Metrics
2023
Status
Environmental Impact
Climate Impact
Achieve a 30% cumulative reduction in Scope 1 & 2 GHG emissions from 2018 baseline
12%
Waste & Circularity
Achieve 90%+ waste diversion from landfill company-wide
82%
Reduce total food waste generated in retail stores by 50% cumulatively (2017 baseline)
20%
Achieve 95% diversion of remaining retail food waste from landfill
52%
95%+ of retail stores participating in food waste recycling programs
95%
Seek to achieve 100% recyclable, compostable and/or reusable
Our Brands
packaging
52%
Increase recycled content in packaging so
Our Brands
portfolio collectively contains 10%+
10%
Biodiversity & Resource Conservation
Set new Goal to Protect Pollinators & Biodiversity to reduce pesticide use in fresh produce
supply chains
–
NEW
Percentage of Seafood Department products aligned with Kroger’s Seafood Sustainability Policy
96%+
We recognize the unique role Kroger plays in the future of food. We aim to
operate responsibly, live Our Purpose and fulfill our Zero Hunger | Zero Waste
impact plan to advance positive changes for people and our planet. Additional
details about these and other goals and metrics are shared in the People, Planet
and Governance sections of this report.
People
Planet
Status key
Did not
achieve
On track
Area of focus
Achieved
Achieved ahead
of schedule
Significant
progress
M = million | B = billion
People
Introduction
Planet
2024 Kroger ESG Report
15
Appendix
Governance
Our Approach
Stakeholder Engagement
Kroger has a large and diverse
group of stakeholders, including
individuals and groups who may be
affected by our operations. These
communities influence how we run
our business and help guide how we
develop our sustainability and social
impact strategies.
We proactively manage relationships to foster
open dialogue and capture feedback from more
than 70 organizations on over 30 topics related
to responsibility and sustainability. While our
approach to engagement varies by group, we
prioritize topics based on our strengths,
Thriving
Together
strategy, materiality assessment results,
and other risk-based analyses.
Key Stakeholders
Primary Engagement Methods
Engagement Outcomes 2023
Shareholders
Kroger’s leaders, our Investor Relations team and other subject matter
experts engage with shareholders throughout the year. Key channels
include direct investor engagement, investor conferences, our annual
shareholders’ meeting, quarterly earnings calls, financial reports, investor
questionnaires about ESG topics, www.thekrogerco.com, press releases
and webcasts.
In 2023, under the direction of the board, we requested engagement meetings with 39
shareholders representing 59% of our outstanding shares and subsequently met with
16 shareholders representing 39% of our outstanding shares (we met with many of
those shareholders more than once). Some investors we contacted did not respond or
confirmed that a discussion was not needed at that time.
Non-Governmental
Organizations (NGOs)
We engage many NGOs to share how Kroger approaches topics affecting
people and our planet, including our Zero Hunger | Zero Waste impact
plan. We welcome constructive and open dialogue with NGOs on a wide
range of topics.
Ongoing NGO engagement shapes our management approach to corporate
responsibility. In 2023, we continued to work collaboratively with World Wildlife Fund
(WWF), ReFED and other food companies as part of the Pacific Coast Food Waste
Commitment (PCFWC) to donate more unsold food to feed people and reduce food
waste in landfills. We also support the new multi-stakeholder U.S. Food Waste Pact,
which extends the principles and collaborative approach of the PCFWC to reduce food
waste across the country.
Associates &
Labor Unions
We engage with Kroger associates in all locations where we operate.
We use training, one-on-one discussions and coaching, our intranet,
email, leadership meetings and town halls, affinity and inclusion groups,
internal and external social media, and associate engagement surveys.
We also communicate with local and international unions through
scheduled meetings, telephone calls and ongoing collective bargaining
agreement negotiations.
Our associates’ feedback helped inform continued investments in new skill-building
tools for learning and advancement. In 2023, Kroger introduced the Fresh Start
platform—available through handheld devices, store computers and a mobile phone
app—with easy access to daily on-the-go training and other content in brief modules
designed to engage associates and make learning more fun. We also introduced
a Zero Hunger | Zero Waste certification curriculum for associates to increase
engagement in our impact plan.
Customers
We offer customers many ways to engage with us, including in-store
service counters, surveys, focus groups, websites and social media, as well
as Kroger Customer Connect—our live call center.
Feedback from our customers guides improvements to our in-store and digital
shopping experiences and product portfolio. In 2023, Kroger conducted new research
asking for feedback on Kroger’s sustainability and social impact strategy and related
topics. More than two-thirds of our customers rated food safety, food access and
affordability, health and nutrition, and reducing food waste highest in importance to
them, validating our Zero Hunger | Zero Waste plan and areas of focus.
Communities
We foster close relationships with the neighborhoods in which we
operate and listen to local and national organizations needing support
to achieve mutual goals. Key channels include direct engagement, local
giving and fundraising, service and volunteerism, weekly food donations,
hunger relief, ongoing special events, store openings, media relations
and more.
Kroger works closely with nonprofit organizations that request funding for key national
and local community projects. Last year, in addition to quarterly grants from retail
operating divisions and our foundations, Feeding America requested and received a
$1 million grant from The Kroger Co. Zero Hunger | Zero Waste Foundation to enable
more frequent food donation pickups benefiting four community food banks: Food
Bank of Eastern Michigan (Flint, MI); Houston Food Bank (Houston, TX); Mid-South
Food Bank (Memphis, TN); and the Atlanta Community Food Bank (Atlanta, GA).
Suppliers &
Manufacturers
Kroger’s engagement with our suppliers is a critical element of our
commitment to responsible sourcing and supply chain accountability. We
focus our engagement during the onboarding process and continue it
through ongoing meetings, site visits, surveys and audits.
In 2023, we engaged suppliers to help shape several key policies and goals, including a
new Nature-Based Goal to Protect Pollinators & Biodiversity to advance sustainability
in our fresh produce supply chain. We also began onboarding produce suppliers to
the Ethical Charter Implementation Program to continue to support efforts to respect
farmworkers’ rights in domestic produce supply chains.
People
Introduction
Planet
2024 Kroger ESG Report
16
Appendix
Governance
Our Approach
#25
Fortune 500
Companies Ranked by
Revenue 2024
#5
Newsweek
Most Trustworthy
Companies in
America (Grocery &
Convenience Stores)
2024
Handshake
Early Talent Award
for places to launch
meaningful careers
2024
Kroger
Health
Mass Market
Retailer of the Year
2023
Kroger Health
SingleCare
Best of the Best
Pharmacy Awards
2023
Brandon Hall
Human Capital Management
Excellence Gold Award
2024
#27
Barron’s
100 Most Sustainable
U.S. Companies
2024
America’s
Climate
Leaders
USA Today
2024
Progressive
Grocer
Impact Awards:
Diversity, Equity & Inclusion
Sustainability & Resource Conservation
2023
Sustainability,
Environmental
Achievement and
Leadership (SEAL)
Business
Sustainability
Award
2023
Recognition
#3
Mogul Top 100
Workplaces
for Diverse
Professionals
2024
Disability:IN
Best Places to Work
for Disability Inclusion
5 consecutive years
Computerworld
Best Places to Work in IT
6 consecutive years
2024
#29
Axios Harris Poll 100
Reputation Rankings
2024
People
Introduction
Planet
2024 Kroger ESG Report
17
Appendix
Governance
Our Approach
People
Food is at the heart of every community, and
so is Kroger. We serve and strengthen the places
we call home—for our associates and customers,
for local businesses and farmers, and for towns
and cities wanting to grow and thrive.
In This Section
19
2023 Highlights
20
Our Associates
27
Our Customers
31
Our Communities
Material Topics
• Talent Attraction, Engagement & Retention
• Labor Relations
• Diversity, Equity & Inclusion
• Employee Health, Safety & Well-Being
• Customer Experience
• Food & Product Access & Affordability
• Health & Nutrition
• Local Communities
Our Approach
Introduction
Planet
Appendix
Governance
2024 Kroger ESG Report
18
People
$46M
in customer-directed
Kroger Community
Rewards for local
nonprofit organizations
$500M
invested in lower
prices for customers
700+
new affordable,
quality
Our
Brands
items
introduced
People: 2023 Highlights
Related Resources
ZERO HUNGER | ZERO WASTE
LIFTING UP OUR COMMUNITIES
KROGER HEALTH
$210M
invested in
skill-building for
our associates
$500M
invested in our
associates’ wages
and benefits
At Kroger, Our Purpose is to Feed the Human Spirit. Our ambition extends
far beyond the food and essentials we provide. We create brighter days and
uplifting experiences for our associates, customers and communities, and we are
a generous and trusted partner in the neighborhoods we serve and beyond.
$329M
in total charitable
giving for our
communities
455M
meals donated
for local
hunger relief
50K+
associates have been with Kroger
10 years or more
Our Approach
Introduction
Planet
2024 Kroger ESG Report
19
Appendix
Governance
People
Kroger offers jobs, skill-building and career opportunities for thousands of
people in our communities every year. Many associates join for a part-time
job and discover a fulfilling career at Kroger. We strive to hire people who
reflect the communities we serve and create a respectful and welcoming
work environment where everyone can thrive.
Our Associates
Our Approach
Kroger’s success and growth is possible because of
dedicated associates who choose to build their careers
with us. They are the heartbeat of our stores, our
distribution and fulfillment centers, our manufacturing
plants and our offices. They are what makes Kroger
such a special place. Every day, our associates deliver
fresh and friendly experiences for our customers, serve
our communities and live Our Purpose: To Feed the
Human Spirit. We continue to invest in ways that help
them grow and learn with Kroger.
Kroger’s chief people officer leads efforts to support,
inform and advocate for our associates by providing
oversight to the company’s Human Resources, Labor
Relations and Corporate Affairs functions. Guided by
Our Purpose and Values, these groups—along with
people champions across the business—focus on
advancing our human capital management strategy to
support individual and company success. We monitor
and measure progress on key metrics and identify
opportunities to increase associate engagement,
well-being and belonging.
The board’s Compensation & Talent Development
Committee oversees progress on human capital
management topics.
168M
learning courses
completed by our
associates in 2023
65%
of our associates are covered by
collective bargaining agreements
negotiated with local unions
15
Associate Resource
Groups to promote
inclusion and belonging
Because of our unique business model, we help unlock
economic opportunity for nearly half a million people
of various ages and aspirations—from those seeking
entry-level part‑time jobs to graduate-degree specialists
across corporate functions. In 2023, a total of 420,000
associates were part of the Kroger family.
Our People Strategy
We value and respect our associates, and we want
to connect meaningfully with them throughout
their employment journey, providing important
opportunities to learn, grow and advance.
Kroger’s people strategy focuses on three priorities:
•
Connecting and retaining our talent
•
Developing our leaders
•
Advocating for our associates and their well-being
This strategy is designed to improve associate
engagement, reduce turnover and develop
a workforce that reflects the diversity of our
communities. We recently affirmed our people
strategy, reset internal goals and developed initial
roadmaps for achieving them.
Our people strategy requires a holistic approach,
focusing on every stage of our associates’ journey
from candidate to alumni, including the care they need
to grow and the skill-building resources they need to
deliver on our business strategies. This begins with a
consistent and effective onboarding experience and
continues through ongoing connections to support
performance and yearly training and development
focused on skills and capabilities for success.
Investing in Our Associates
Kroger continues to invest in our associates—
through wages, benefits, training, safety, well-being
and more—because we know that when they have a
better experience, our customers have a better
experience too.
A key component of these efforts is continually
refining our competitive Total Rewards programs,
which include compensation, health care benefits,
retirement benefits and perks available to our
associates, including those covered by collective
bargaining agreements. We offer competitive pay and
benefits in our stores, distribution centers, dedicated
fulfillment centers, manufacturing plants, technology
hubs and corporate offices.
Material Topics
TALENT ATTRACTION, ENGAGEMENT & RETENTION
LABOR RELATIONS
DIVERSITY, EQUITY & INCLUSION
EMPLOYEE HEALTH, SAFETY & WELL-BEING
Nearly $25/hour
average retail hourly wage including
comprehensive benefits; nearly $19/hour
without benefits
Our Approach
Introduction
Planet
2024 Kroger ESG Report
20
Appendix
Governance
People
In 2023, we invested an incremental $500 million in
our associates’ wages, increasing average hourly wage
rates. Since 2018, we have made a total of $2.4 billion
in incremental wage investments, increasing wages by
33%. As a result, our average hourly wage is now more
than $19, and nearly $25 including comprehensive
benefits. We are committed to sustainably increasing
associate wages over time in ways that support
our business model and preserve affordability for
our customers.
We offer high-quality health care coverage for our
associates and their families. We listen to our associates
and invest in health care benefits that they consider
to be most meaningful, including comprehensive and
affordable health care coverage with support for family
members and domestic partners.
In 2023, we introduced new well-being resources based
on our associates’ feedback, and we will continue to
adjust these offerings to support our people.
More information about how Kroger supports our
associates’ well-being.
Hiring & Engaging
Associates
We offer every associate opportunities to feed their
future and discover a career at Kroger. We provide
accessible and flexible employment options for people
of all ages and backgrounds, including candidates
looking for a part-time job or building a fulfilling
professional career.
The Kroger Family of Companies aims to be an
employer of choice in our communities and across the
country, and we continue to adapt and improve how
we attract and tap into sources of talent. This includes
enhancing our recruiting systems and early talent
pipeline. We know that for many associates, Kroger is
their first job.
In early 2024, we added a recruiting module to our
new MyInfo HR technology platform to enhance our
talent attraction systems. With this added functionality,
Kroger’s hiring and management teams have a new
suite of tools to enhance the candidate experience and
improve our time-to-hire and time-to-start metrics.
Gen Z accounts for a growing share of today’s
workforce and tomorrow’s leaders, and Kroger
continues to invest in our internship program and early
talent pipeline. During the past two years, we welcomed
more than 530 interns to our company. Kroger interns
work on real projects and produce real results across
all areas of the business, from supermarket divisions,
manufacturing and supply chain to corporate functions
and our Kroger Technology & Digital team. We are
working on increasing the number of interns in our
program and extending it to all lines of business.
Reflecting Our Communities
We hire and welcome new associates of all backgrounds
in the neighborhoods we serve. This includes candidates
like mature adults, military service veterans and those
seeking employment reentry. We work with many
other groups to recruit new talent, including veterans’
organizations and multicultural universities and colleges.
We offer jobs that support the unique needs of our
military veterans, service members transitioning from
active duty and their families. During the last 10 years,
Kroger hired more than 50,000 veterans for roles in
stores, Kroger Technology & Digital, Supply Chain and
more. In 2023, our HR team offered a virtual Veteran
Career Expo so veterans and their families could learn
more about career opportunities at Kroger. Candidates
participated in one-on-one conversations about
their interests to help match them to a wide range
of career paths and opportunities.
In 2023, we expanded Kroger’s collaboration
with justice-impacted organizations through our
New Beginnings program, which now includes
all food processing plants, warehouses and
fulfillment centers. Powered by collaboration with
more than 75 trusted community partners, we seek
to create second-chance opportunities for certain
individuals to start fresh and become financially
stable through employment and access to benefits,
depending on the role.
Our Approach
Introduction
Planet
2024 Kroger ESG Report
21
Appendix
Governance
People
Engaging Our People
Listening plays a critical role in our ability to retain
and develop our associates. We gather feedback
throughout the year in a variety of forms, including
an annual Associate Insights Survey. In 2023, the
company-wide engagement score was 57, a one-
point increase from 2022 and a three-point increase
from 2021. We also saw a 3% increase in survey
participation in 2023.
Our survey results tell us that key drivers of
engagement include: a sense of belonging, confidence
in the future of the company, positive changes being
made to address survey feedback, the company’s
genuine interest in our associates’ well-being, and
having a friendly and caring place to work.
Improving Retention
Many associates come to Kroger for a first or part-
time job and discover a rewarding career. These first
jobs form a strong foundation of real-world job skills
and experience that serves our associates in any
next job in store operations or across the business
in Supply Chain, Technology, Finance or other
corporate functions.
Associates tell us they value our Total Rewards
programs, which include competitive wages and
quality health care and retirement benefits, well-being
resources and more. We believe investing in these
programs enables associates to grow and thrive and
improves retention over time.
We aim to improve associate experiences at
every stage of their time with us, from the
hiring and pre-boarding process to onboarding,
training, performance management and feedback
experiences. In 2023, we developed a new internal
metrics dashboard to align teams at all levels of the
organization to track and improve common measures
that affect retention, including time to hire, time to
start, the onboarding experience and participation in
new user-friendly training modules.
Come for a Job, Discover a Career
1
Associates Celebrating Milestones in 2023
5+
10+
20+
30+
58,882
51,441
26,043
12,496
40+
50+
3,561
142
Developing Associates
& Leaders
We aim to cultivate a culture of opportunity where
everyone can thrive. This includes providing tools
and resources to help our associates learn new skills,
expand capabilities and grow their careers.
Kroger offers a range of comprehensive training and
development opportunities for all associates, from
entry-level new hires to corporate and executive
leaders. We support the learning, growth and
development of our associates to build skills that serve
them well at Kroger or elsewhere.
In 2023, we invested $210 million in training for our
associates company-wide, and we plan to invest an
additional $181 million in 2024.
We continue to accelerate the use of our digital
learning app Fresh Start for a better onboarding and
learning experience. Fresh Start—available on shared
company-owned technology or associates’ personal
mobile devices—provides quick and effective training
to frontline associates in an engaging format, helping
them develop important skills, build confidence
and more effectively serve our customers. This new
platform makes new-hire onboarding easier and
enables us to deliver training in the flow of associates’
everyday work.
With Fresh Start and more traditional training
modalities, we deliver a wide range of information to
associates at all levels, including role-based training,
leadership development opportunities, and courses
on Our Purpose and Values, associate well-being
and safety, service excellence, our Zero Hunger |
Zero Waste impact plan and more.
While overall engagement shows continued
improvement, we still have work to do. After
reviewing company-wide and team results, leaders
develop and activate site- and team-based action
plans to address feedback on key themes, including
associate belonging, overall well-being and supervisor
effectiveness. In 2024, we are conducting pulse
surveys instead of a full engagement survey to give
leaders more time to implement action plans before
the next full survey.
We may conduct other pulse surveys throughout the
year to check our progress, measure well-being and
see how our associates are feeling. Based on these
insights, we can offer additional resources for leaders
and associates to respond to feedback more quickly.
Years of Service
Number of Associates
1.
Excludes Home Chef and Vitacost associates
Our Approach
Introduction
Planet
2024 Kroger ESG Report
22
Appendix
Governance
People
In 2024, we introduced several enhancements to the
Fresh Start app, including new skills-based onboarding
paths and digital quizzes to assess our new hires’
proficiency levels. We also launched new communication
functionality to more easily share local division and
facility news, tasks, recognition and other content.
Feed Your Future
To help associates achieve their learning goals,
we offer an industry-leading continuing education
assistance benefit that provides up to $3,500 annually
(and up to $21,000 over the course of a career).
In 2022, we expanded eligibility for this benefit to
virtually all part-time and full-time associates after
60 days of service. In 2024, we are expanding this
benefit to interns with 120 days of service or more.
Since inception, the program has directed over
$27 million in tuition reimbursements to nearly 6,000
associates. More than 3,000 associates, 90% of whom
are hourly, participated in the program last year.
Effective Leaders
Developing highly effective leaders is critical to
Kroger’s overall associate and customer experience.
We will continue our positive momentum with
strategies and initiatives that support our current
leaders, retain diverse talent, and develop strong and
capable leaders of the future.
We build and strengthen our leaders’ capability and
effectiveness through our Career Track Leadership
Development Framework. This framework outlines
both leadership and technical development
requirements so our people lead highly effective
teams at every step of their career. We release
new content each quarter with training, tools and
resources to build key leadership skills. We want our
leaders to have a deep sense of ownership in the
business and passion to improve every day while
keeping people at the heart of everything we do.
We invest in our leaders’ development by:
•
Offering an extensive catalogue of on-demand and
instructor-led development courses designed to
support leaders at every career level
•
Conducting formal internal development programs
and experiences
•
Inviting leaders to participate in regional and
industry development programs
We recently enhanced role-based development
programs for store department leaders, management
trainees and district managers working across our
retail divisions. We extended our comprehensive Store
Management Training Program from 10 to 15 weeks
and included even more real-world store experiences,
one-on-one coaching, updated virtual sessions
and digital assessments to gauge proficiency and
readiness. A refreshed District Manager Development
Program will help these critical leaders build the
people, financial and technical skills needed so our
associates can thrive.
During 2024, we expect to include about 19,000
department leaders, 1,500 store management
trainees and 180 district managers in these
development programs.
Championing Performance
We believe regular, meaningful feedback is critical to
personal development and growth. To ensure associates
receive timely coaching and conversations regarding
their performance, we ask all managers to dedicate
time and attention to coaching and developing team
members. Through Kroger’s Ongoing Connections
performance management approach, associates have
regular performance and development conversations
to set expectations, facilitate career development and
discuss potential advancement over time.
To learn more about our continued commitment to the
growth and development of our associates, visit the
Kroger Careers page on our website.
Labor Relations
Kroger respects our associates’ rights to form and join
representative organizations of their own choosing.
We do not prevent, retaliate or discriminate against
workers choosing to associate with any group (or not)
or bargain collectively (or not).
Collective bargaining agreements are a regular part
of our business and cover many associate matters,
including wages, health care and pensions. These
contracts are regularly negotiated by Kroger’s team of
labor negotiators who follow a consistent process and
take a measured approach to each.
Approximately 65% of our associates are covered by
collective bargaining agreements negotiated with
local unions affiliated with one of several different
international unions. There are approximately 350 such
agreements, usually with three- to five-year terms.
In addition to wage investments noted earlier in
this section, we invested more than $635 million
in our associates’ multi-employer pension plans
in 2023. Kroger also provides affordable, high-
quality health care benefits to eligible associates,
investing $1.2 billion annually in their health and
wellness benefits.
Our Approach
Introduction
Planet
2024 Kroger ESG Report
23
Appendix
Governance
People
Diversity, Equity
& Inclusion
Kroger strives to create an environment where
everyone feels respected and that they belong, and
we aim to attract and retain friendly associates who
reflect our local communities and the neighborhoods
we serve.
We work with leaders of others company-wide
to increase awareness and build skills to manage
teams that embrace and advance diversity, equity,
inclusion and belonging. We also aim to include,
develop and advance leaders of all backgrounds
in career opportunities and roles with increasing
levels of responsibility. For open leadership
positions, we assemble a diverse slate of candidates
for consideration.
To continue developing an inclusive talent pipeline,
we maintain recruiting relationships with a broad
range of institutions, including those offering
postsecondary education in our communities,
historically Black colleges and universities (HBCUs),
Hispanic-serving institutions (HSIs), military
organizations, neurodiverse groups, and others.
Please see the Workforce Overview on the following
page for more details about our associates.
A More Inclusive Culture
Kroger’s internal Diversity, Equity & Inclusion (DEI)
Advisory Council includes cross-functional leaders
who are committed to advancing progress. The
Council works closely with senior officers and
business leaders to identify opportunities and specific
actions for improvement. Based on our associates’
feedback, we evolved the design of this advisory
council in early 2024 to include a broader range of
voices to inform our direction and decision-making.
We are also focusing the actions of our Associate
Influencer Group, which includes hourly associates,
to provide input on how to increase inclusion and
belonging across the company.
For the fifth consecutive year, Kroger was named
among the Best Places to Work for Disability
Inclusion, earning a score of 100 on the Disability
Equality Index. Kroger was also named among the
100 “Best of the Decade” Companies by
Minority
Business News
.
We also develop and maintain relationships with
a wide range of local and national chambers of
commerce and small business accelerator programs
to share opportunities to bid for Kroger’s business.
We believe working with an inclusive group of
national and local suppliers helps expand our
product assortment to meet our customers’ wide-
ranging needs.
Learn more about our Supplier Diversity
& Inclusion Program.
Associate Resource Groups
To support our associates and foster inclusion,
Kroger offers 15 Associate Resource Groups (ARGs),
or affinity groups, with chapters across the company.
These groups enable personal connections across
the Kroger Family of Companies, influence business
decisions, facilitate shared experiences, encourage
cross-ARG membership for awareness and promote
personal and professional growth.
Kroger leaders sponsor the ARGs and personally
engage with members, allies and other associates
who are interested in learning more. All associates
are welcome to join any of our ARGs to listen,
learn and meet other associates. These ARG
communities include:
•
African American
•
Asian
•
ECO (Environmentally Conscious Outcomes)
•
ITOPiA (embracing all personality types)
•
KePasa (for the Hispanic community)
•
Kickstart (for associates who are new to Kroger
or looking for a new opportunity at Kroger)
•
Men for Equality
•
Our Abilities (disability inclusion)
•
Parents
•
Pride (LGBTQ+ inclusion)
•
Prime Timers (for associates at later stages
of their careers)
•
Veterans
•
Wellness
•
Women’s EDGE
•
Young Professionals
An ARG Steering Committee of diverse leaders helps
review and establish consistent principles to advance
associate engagement, professional development
and community outreach, and to foster a sense
of belonging.
Read more about our Framework For Action: Diversity,
Equity & Inclusion.
Pay Equit
y
Kroger aims to foster a culture of diversity, equity and
inclusion that offers fair and equal pay for men, women
and people of all races and ethnicities, in alignment
with Our Values. We have processes and tools in place
to support fair and equitable recruiting, employment
offers and advancement opportunities. We conduct
annual pay studies to monitor our performance and
identify unintended discrepancies.
In 2023, in consultation with an expert third-party
consultant, we enhanced the methodology for our
pay analyses to better align with evolving industry
standards. Our review of our associates’ total
compensation for calendar year 2023, including base
pay, cash bonuses, and equity, adjusting for factors such
as position, tenure, performance, geographic location
and collective bargaining unit, confirms there are no
meaningful differences in pay on an adjusted basis for
associates who self-identify as male, female or person of
color. See our Statement on Pay Equity for more details.
We will annually disclose our adjusted pay ratios and,
beginning in 2025, we will include unadjusted pay
equity results for fiscal 2024 and beyond.
Our Approach
Introduction
Planet
2024 Kroger ESG Report
24
Appendix
Governance
People
2023 Workforce Overview
About Our Associates
1
Full time
Part time
Total
Women
86,944
115,218
202,162
Men
96,448
112,100
208,548
Total
183,392
227,318
410,710
2022
2023
White Women
29.3%
27.9%
Women of Color
20.2%
21.2%
White Men
29.9%
28.9%
Men of Color
20.5%
22.1%
Reflecting Our Communities
U.S.
Population
2
Kroger Operating
Area Population
3
Kroger
Associates
4
Totals
White or Caucasian
61.7%
55.1%
56.5%
238,337
Hispanic or Latino
18.0%
21.9%
16.8%
71,035
Black or African American
11.9%
12.7%
13.8%
58,363
Asian or Asian American
5.1%
6.8%
3.9%
16,446
Other
3.4%
3.5%
9.0%
37,947
Diversity in Our Retail Leadership Roles
White Women Women of Color White Men Men of Color
1.
Totals provided for gender and ethnicity reflect our transition to
a new workforce management system, in which associates are no
longer required to specify or disclose gender or ethnicity
Diversity and Inclusion are among Our Values, and we aim to attract and retain
diverse associates who reflect the demographic representation of our country
and the neighborhoods we serve.
30.5%
16.9%
33.9%
18.7%
Store Department
Leaders
25.1%
14%
40.7%
20.2%
Assistant
Store Leaders
21.8%
11.4%
49.8%
17%
66.1%
of all Store
Department
Leaders
are women
or people of color
59.3%
of all Assistant
Store Leaders
are
women or people of
color
50.2%
of all Store Leaders
are women or
people of color
2.
2022 U.S. Census Bureau population estimates
3.
2022 U.S. Census Bureau population estimates
4.
Kroger data as of fourth quarter of fiscal year 2023
Average Hourly Compensation
Includes comprehensive benefits
2018
2019
2020
2021
$18.36
$19.10
$19.67
$22.11
2022
2023
$23.50
$24.50
Kroger publicly discloses our latest EEO-1 report
on our Investor Relations site.
Kroger offers accessible employment, opportunities to learn and grow, and a wide range
of rewarding careers. We believe that by investing in our associates and being an employer
of choice, we can deliver an outstanding customer experience every day, every time.
Store Leaders
Our Approach
Introduction
Planet
2024 Kroger ESG Report
25
Appendix
Governance
People
Associate Health,
Safety & Well-Being
Safety is one of Kroger’s long-standing values, and we
believe managing personal health and safety is critical
to our company’s success.
Kroger’s operating unit leaders and executive
leadership team are responsible for our management
approach to associate health and safety, with additional
oversight from the Public Responsibilities Committee
of the board. Business units and administrative
functions follow an established approach to help
protect associates’ health and safety.
OSHA Standards
Kroger follows established policies and standards
to meet or exceed relevant Occupational Safety
and Health Administration (OSHA) requirements,
including comprehensive hazard communications
and lockout/tagout plans, as well as guidelines for
emergency evacuation, personal safety and personal
protective equipment (PPE).
In 2023, Kroger improved our safety performance
company-wide versus the prior year. Key metrics show
improvement in company-wide OSHA reportable
injuries, which declined 7.2%, driven by a 9.3%
reduction in injuries in supermarket operations. Lost-
day rates improved for associates but increased for
contractors versus the prior year.
Safety measures are included in prioritized metrics
for facility operations. We continue to deploy virtual,
classroom and mobile training through our Fresh
Start app for safety requirements to reach even more
associates and provide reminders about safe work habits.
Learn more about our safety performance.
Retail Stores
In 2023, we continued to refine our company’s safety
program—AllSafe!—for associates in Retail Operations,
Fred Meyer Jewelers and Pharmacy Central Fill
operations. The program is designed to increase
associates’ awareness and attention to personal safety
and well‑being.
AllSafe! is grounded in four principles:
•
Nothing we do is worth risking injury
•
Accidents can be prevented
•
Safety will be managed
•
Safe behavior is a condition of employment for
all associates
Kroger has detailed requirements and processes in
place to minimize, review and address safety concerns
in stores. Through clearly communicated expectations,
routine monitoring and regular safety behavior training
and reinforcement, we continue to reduce the number
of injuries and accidents in our stores. We provide PPE
for associates where appropriate, and we require store
leaders to conduct a thorough PPE assessment at least
annually to verify it is available and in use.
Any accidents are reviewed within 24 hours to
determine the root cause. Dedicated on-site safety
teams meet routinely to review recent injury root causes
and safety audit results, and to resolve any issues.
In 2023, Kroger launched AllSafe! Interactions, which
enables associates to be observed and coached in real
time on safety best practices and behaviors through
store handheld devices. This replaced a paper-based
observation process and focuses on more detailed
and meaningful interactions with associates. Real-
time results are delivered through handheld devices
for better tracking and data insights through Power
BI dashboards.
Think AllSafe!
In 2024, retail stores began using the Think AllSafe!
web-based platform, which houses store-related
OSHA training courses to promote safety, including:
•
Bloodborne Pathogens Safety Plans
•
Emergency Plans and Procedures
•
Hazard Communications (Chemical Safety)
•
Hazardous Energy Lockout/Tagout Safety Plans
•
Heat Illness Prevention
•
Powered Industrial Truck Safety (Safe
Forklift Operations)
•
Wildfire Safety Plans
Think AllSafe! enables stores to use a digital entry
and tracking system to manage OSHA compliance.
The new platform offers greater visibility to store
compliance and makes it easier to provide required
information during OSHA inspections.
Supply Chain
Leaders focus on measures to improve associates’
health and safety at Kroger-operated food
processing facilities, distribution centers and
dedicated fulfillment centers, as well as in transit
between locations. We extended an existing
program for our manufacturing facilities with Safety
in Motion®, Inc. to support Kroger’s integrated
Supply Chain function.
Kroger expects third-party contractors supporting
supply chain operations to uphold the same level
of worker health and safety standards. With the
expansion of Kroger Delivery, we developed
additional training resources to help keep
associates safe in our fulfillment centers and on
the road.
Supporting Well-Being
To enable our associates to thrive, we take a holistic
approach to well-being, aiming to deliver experiences
that support and enhance their life, mind and body. We
also offer resources that enable managers to create a
supportive environment within their teams.
Decisions to refine and expand the range of well-being
initiatives reflect our associates’ feedback. During the
past two years, we expanded access to mental health
providers for company health care plan participants and
created easy-to-navigate guides to available resources,
including self-help apps, confidential counseling, family
support services, fitness discounts and more. An
online benefits guide through Magellan Health offers
associates a one-stop shop for all well-being resources.
Kroger received the 2024 Platinum Bell Seal for
Workplace Mental Health, reflecting an increased level
of achievement from our 2023 Gold Bell Seal. This is the
third consecutive year we have been recognized with
the certification and the first time at Platinum level. This
program recognizes Kroger as an employer who creates
a mentally healthy workplace for our associates through
culture, benefits, compliance and wellness programs.
To promote financial well-being, our Goldman Sachs
Ayco financial coaching benefit is available to virtually
all associates, including frontline hourly associates. This
first-of-its-kind, one-on-one coaching program provides
free confidential coaching to help associates navigate a
variety of financial topics.
Kroger associates have access to free,
confidential counseling 24 hours a day,
seven days a week, through Magellan
Health. Services generally include short-
term counseling and referrals for associates
and their household members who might be
dealing with stress, anxiety, depression, grief,
relationship challenges and more.
Our Approach
Introduction
Planet
2024 Kroger ESG Report
26
Appendix
Governance
People
The Kroger team is guided by our vision that when people think food, they
think Kroger. Our neighborhood stores are welcoming places where shoppers
see friendly faces, stock up on affordable essentials, grab meals on the go,
find medications and so much more.
Our Customers
Our Approach
Kroger is in the meal solution business, and we know
many families feel overwhelmed and are looking for
help. We work to solve “What’s for dinner?” for our
customers by making meals easier, fresher and more
affordable. When meals are a problem to solve,
families come to Kroger for the answer.
Keeping our prices low is the foundation of our
strategy. Lower prices attract more loyal customers
who help us grow our business. This allows us to
reinvest in even lower prices, an ever-improving
shopping experience and higher wages for
our associates.
By grounding in the focus areas of our go-to-
market strategy—
fresh
,
Our Brands
,
seamless
and
personalization
—our business will continue to grow
and serve more customers across the country. We
make it easy, affordable and convenient for more
customers to shop with us anytime, anywhere.
Kroger’s approach to serving our customers is
shared across lines of business and corporate
functions, including Retail Operations,
Merchandising, Marketing, Sourcing, Supply Chain,
e-commerce and Corporate Affairs. The company’s
executive leadership team and Board of Directors
provide additional oversight.
$1.3B in savings
in 2023
62M
households
Customer Experience
Kroger’s brand promise—Fresh For Everyone—
expresses our commitment to bringing fresh,
affordable food to more people in more
neighborhoods across the country. Today, we serve
more than 62 million customers annually through
convenient local stores and online shopping with
pickup and delivery options, lower prices and
personalized offers, quality
Our Brand
s choices,
valuable rewards and membership options, and more.
We consider efforts to advance food and product
safety and quality for our customers as foundational
to our business. Read more about our approach to
food safety.
Leading with Fresh
Our customers prioritize fresh when they shop; in fact,
more than 90% of our customers buy fresh foods.
Kroger has long been a leader in affordable fresh
produce and proteins, including expanding access to
natural and organic options many years ago.
We want customers to trust the quality and freshness
of every item they purchase. To do this, we have
strong relationships with regional and local farmers
and suppliers, enabling Kroger to source the freshest
products. We recently expanded the
Our Brand
s
portfolio to include Field and Vine™, which offers
regionally grown berries picked at peak freshness.
We are also changing the way we bring fresh to life
in our stores. Our End-to-End Fresh initiative—now in
nearly 2,100 stores—enhances operational processes
so we deliver products to our customers sooner for
more days of freshness in homes. It uses technology
to improve the fresh experience from in-store to
pickup and delivery channels. Sourcing more locally
grown products also increases days of freshness in our
customers’ homes and reduces waste.
Our Technology and Supply Chain teams are working
together to develop new ways to add even more days
of freshness to our products. From optimizing delivery
routes to simplifying our associates’ tasks, we want
to ensure our customers can buy food at its peak of
freshness and trust those items will remain fresh in
their homes.
Material Topics
FOOD & PRODUCT ACCESS & AFFORDABILITY
CUSTOMER EXPERIENCE
HEALTH & NUTRITION
24K
health care providers in
Kroger pharmacies &
The Little Clinic® locations
4 $1B+ brands
in the popular
Our Brands
portfolio
$12B
in digital sales
in 2023
Our Approach
Introduction
Planet
2024 Kroger ESG Report
27
Appendix
Governance
People
Accelerating with Digital
Expanding our online shopping, pickup and delivery
solutions means more people have access to fresh,
affordable food. Today, our customers can place
orders and get their groceries when and where
they want them, including pickup services at 2,200
stores, delivery from 2,500 stores through third-
party services, or same-day delivery through Kroger
Delivery in select geographies. Nearly all of our
customers have access to our pickup and delivery
services. In 2023, the number of households who
engaged with Kroger online increased 18% versus the
prior year.
Kroger Delivery—introduced in 2021—is a direct-to-
home delivery service. We operate eight dedicated
Kroger Delivery fulfillment centers in Monroe, OH;
Groveland, FL; Forest Park, GA (Atlanta); Pleasant
Prairie, WI; Dallas, TX; Romulus, MI (Detroit); Aurora,
CO; and Frederick, MD. Our Delivery network has
experienced strong growth to date.
We remain confident that our Kroger Delivery
network provides a differentiated customer
experience and will continue to be a key pillar
of our digital growth strategy.
Boost Membership
To make home delivery options accessible to more
customers, we developed and introduced Boost by
Kroger Plus, the industry’s most affordable grocery
delivery membership program. For either $59 or
$99 per year, Boost members receive unlimited
free delivery on orders of $35 or more and 2X Fuel
Points for every $1 spent on groceries and general
merchandise through Delivery, Pickup and in stores.
We estimate that Boost memberships can save
customers more than $1,000 per year on grocery
deliveries and fuel. In the program’s first year,
Boost by Kroger Plus members saved a total of
more than $115 million.
Affordable Fresh Food
We believe meals prepared at home are the most
affordable way for families to enjoy nourishing meals
together. We want our customers to enjoy great
meals without compromising quality, selection, value
and convenience. We regularly develop and promote
low-price meal bundles and money-saving tips.
We connect with our customers through low prices,
Our Brand
s, special promotions and personalized
offers that stretch budgets and make cooking at
home easier. We have a long history of successfully
serving more customers as we grow by lowering
prices, creating a more seamless and personalized
experience, and expanding our selection of
fresh, affordable food. In 2023, Kroger invested
$500 million in lower prices for our customers.
Our combined paper and digital coupons helped
our customers save more than $1.5 billion last year
in addition to everyday promotions and discounts.
Kroger also enhanced systems to enable customers
to pay online through Electronic Benefits Transfer
(EBT) for the Supplemental Nutrition Access Program
(SNAP) and the Special Supplemental Nutrition
Program for Women, Infants and Children (WIC),
removing additional barriers to food access like store
location and transportation.
Since 2003, Kroger has invested a total of $5 billion
in lower prices to make shopping on a budget easier
and more affordable for our customers.
Special Markdowns
We have programs in place to discount imperfect
but still safe-to-eat fresh items in stores to make
them even more affordable. This includes our
popular produce “redbag” program and markdowns
across our stores every day.
In 2023, we tested dynamic markdown processes to
update how and when we discount fresh produce and
other short-dated items. At select stores in Indiana
and Michigan, we introduced a pilot with Flash Food,
a third-party app that makes it easy for customers to
find great deals on produce, meat and more.
For online shoppers, the Kroger Delivery team
continues to refine a “flash sale” feature that
highlights high-inventory items every day, offering
customers special discounts to save even more.
We believe the way to be America’s
best grocer is to provide great value by
consistently lowering prices and offering
more choices. When we do this, more
customers shop with us and buy more
groceries, which allows us to reinvest
in even lower prices, a better shopping
experience and higher wages.”
Rodney McMullen,
Kroger Chairman and CEO
Our Brands
Kroger’s popular and affordable
Our Brand
s have a
leading position among brands in the U.S., and our
customers tell us the quality of
Our Brand
s is a key
factor in delivering a better shopping experience.
We have four billion-dollar brands—Kroger®, Simple
Truth®, Private Selection® and Home Chef®—and more
than 13,000 exclusive, quality-guaranteed items that
families know they can trust.
In 2022, we introduced a new, simplified opening-
price-point brand known as Smart Way, designed
for customers who want to stretch their budgets. In
2023, we introduced Kroger Mercado, a Hispanic-
inspired brand joining the
Our Brand
s’ roster of
products. Kroger Mercado’s expansive assortment
includes more than 50 products, including items
such as fresh meat, beverages, snacks, sides,
desserts and more.
In all, we launched more than 700 new, unique
Our
Brand
s products in 2023. The Kroger team engages
with food trends throughout the year to understand
what our customers are craving and ensure we have
those items on our shelves. We aim to bring every
customer the high-quality, affordable products they
love—from pantry staples and fresh foods to ready-
to-heat, restaurant-quality meals.
Our Brand
s is on
track to introduce more than 800 new items in 2024.
Our Approach
Introduction
Planet
2024 Kroger ESG Report
28
Appendix
Governance
People
Loyalty & Rewards
More than 62 million households are enrolled in our
popular Kroger Plus loyalty program. Membership
unlocks special lower prices, fuel discounts, exclusive
digital offers and the chance to direct a portion of
the company’s charitable giving to local nonprofit
organizations through Kroger Community Rewards.
We carefully measure how we serve our customers
by analyzing detailed sales, loyalty, operations
and customer satisfaction metrics. Kroger receives
positive feedback from our customers about our
loyalty program and rewards. Satisfaction surveys
and purchasing insights also inform improvements in
service, product quality and item assortment.
Health & Nutrition
Access to affordable fresh food and convenient health
services is important to our customers. Fresh food can
nourish healthy people, slow the progression of illness
and transform families and neighborhoods.
We also believe in the power of fresh food to improve
health. Through our core operations, Kroger Health
business and more, we advance food access, nutrition
and health through products and services, customer and
community engagement, and strategic philanthropy.
Our approach to health and nutrition includes multiple
lines of business and functions, from Merchandising and
Retail Operations to Kroger Health, e-commerce and
Marketing. We aim to offer customers easy ways to live
a healthier lifestyle when shopping with Kroger in stores
and online, including through health services offered by
our pharmacies, The Little Clinic® and our dietitians.
Kroger Health leads the strategy behind our work to
expand access to care in our communities. A team of
24,000 health care practitioners, including pharmacists,
nurse practitioners, dietitians and technicians, serves
more than 17 million customers annually. They are
available to patients every day to address health needs.
From dietary counseling to questions about medications,
patients can find expert, convenient care right in their
neighborhood store or online.
Our senior leadership team and the board’s Public
Responsibilities Committee oversee progress on our
health and nutrition programs as well as pharmacy and
clinic safety measures.
Food as Medicine
Kroger’s Food as Medicine initiative is grounded
in the idea that everyone has the power to change
their health outcomes with food. Our dietitians and
clinicians deliver personalized coaching to help
patients live healthier lives.
In 2023, Kroger gathered leaders across the retail
and health industries to talk about how we can work
together to create healthy, thriving communities.
These discussions led to a number of key
learnings, including:
•
Collective action across sectors has the power
to advance healthier communities
•
Community members play an important role
in determining specific local health needs,
interventions and desired outcomes
•
Everyone’s health journey is distinct, and
effective solutions must be personalized to
address individual needs
Nutrition Insights & Personalization
We recognize that making healthy food choices can be
challenging, so we developed OptUP, a nutrition rating
system to simplify choosing nourishing foods while
shopping. It helps our customers in three unique ways:
•
Nutrition ratings:
Driven by Kroger’s team of expert
registered dietitians, OptUP nutrition ratings use
data science, evidence-based nutrition information
and machine learning to rate foods on a scale from
1 to 100. The more nutritious the food, the higher
the nutrition rating. OptUP nutrition ratings are
available on www.kroger.com, division websites
and the Kroger app to help customers compare the
healthfulness of different products and select what’s
right for them.
•
OptUP scores:
OptUP scores are personalized
nutrition and health insights based on household
purchases over time. While nutrition ratings depict
the healthfulness of single items, an OptUP score
provides insight into macro trends by enabling
customers to see the nutritional value of their
grocery purchases over time. Scores range from 10
to 1,000; generally, customers are encouraged to
aim to score above 600.
•
Better For You options:
Backed by a proprietary
science that identifies similar, substitutable products
with a higher nutrition rating, our online Better For
You feature highlights alternatives to make choosing
healthier options simple. Our customers can find
the Better For You carousels on individual product
pages on www.kroger.com and the Kroger app.
Beyond OptUP, we improve nutrition security through
other products and services, including our Telenutrition
service offering two-way video chat appointments
available across the U.S. with Kroger Health registered
dietitians; Kroger Health Food Boxes, dietitian-
curated boxes of nourishing, shelf-stable food shipped
nationwide; and Welsana, our Diabetes Prevention
Program designed to help diabetes patients manage
their condition and enjoy healthier lives.
17M+
patients served
Our Approach
Introduction
Planet
2024 Kroger ESG Report
29
Appendix
Governance
People
To further reduce prescription medication misuse,
Kroger Health, Cardinal Health Foundation,
DisposeRx and local police stations typically host
drug take-back events twice a year at pharmacy
locations across the country. In the past six years,
the program has collected and properly disposed
of 171,000 pounds of medications and served more
than 77,000 visitors across 34 states.
Access to Vaccines
The National Institutes of Health notes that vaccine-
preventable diseases cost the country $27 billion
annually in lost wages and increased health care
costs. Kroger Health provides a range of routine
immunizations to prevent infection and the spread
of serious diseases, in addition to resources on
recommended vaccines for consumers based on
their age group.
Kroger Health collaborates with businesses and
nonprofit organizations to offer flu and any industry-
or school-related vaccines. We also expanded the
number of trained providers in retail clinics and
pharmacies, improving availability via the online
scheduler and offering faster response to walk-in
patients seeking vaccines.
Health Equity & Advocacy
We recognize that upstream factors like existing
policies and legislation affect equitable access to
health services. We are working with policymakers
to design and fund initiatives that increase patient
access to more nutritious foods and expert nutrition
advice while measuring outcomes to promote
widespread adoption across our health ecosystem.
In 2023, Kroger Health expanded federal advocacy
efforts to promote policies that increase the
accessibility and affordability of our health care
services. Efforts include extending scope-of-
practice laws, and promoting novel approaches to
help patients lead healthier lives by linking better
eating habits with improved health outcomes.
Prescription Drug Awareness
Kroger Health offers solutions to help customers
manage medications safely at home. In 2018, Kroger
Health joined EVERFI to create its Prescription Drug
Safety Education curriculum for high school students.
This curriculum focuses on raising awareness and
encouraging students to make safe decisions around
prescription medications. It helps students manage
difficult situations and choices in high school
and beyond.
Of students participating in the program:
•
80% reported being able to identify signs
of prescription medication misuse
•
83% said they understood ways to avoid misusing
prescription drugs
•
79% were confident in their ability to help
someone who demonstrates the signs of misusing
prescription drugs
Our Approach
Introduction
Planet
2024 Kroger ESG Report
30
Appendix
Governance
People
As Kroger grows, our associates, customers and communities benefit
too. We continue to affirm and expand our long-standing commitment
to operating responsibly, engaging local leaders and giving back
meaningfully to our communities.
Our Communities
Our Approach
We challenge ourselves to create a stable, successful
organization that will support our associates’ growth,
improve our customers’ shopping experience and
reflect the changing ways America eats. Our growth
creates the best environment—now and in the future—
to bring lower prices and more choices to more
people, secure the future of stable union jobs and
invest to help build stronger, thriving communities.
We strive to be an essential part of our communities.
Our stores are community hubs and gathering places
where our associates and customers see neighbors,
grab a quick meal, prepare for special celebrations,
fill prescriptions, discover new items for their families
and more.
We build and strengthen community within each of
our stores, in our neighborhoods, and in the towns
and cities we call home. In many stores, we design
welcoming spaces where people can gather and
discover new foods and flavors together.
Kroger’s Corporate Affairs team oversees how we
engage and give back to our communities at national
and local levels. A centralized Corporate Affairs function
reports to Kroger’s group vice president of Corporate
Affairs and leads community engagement, sustainability,
philanthropy and government relations. The Public
Responsibilities Committee of the board oversees
this work.
Local Communities
Every town and city is unique, and we proactively
engage local elected leaders, city administrators,
chambers of commerce, business associations,
nonprofit organizations and others to listen and
learn about local opportunities and challenges and
consider how Kroger might contribute. Our leaders
often volunteer time and serve on local nonprofit
organization boards and councils.
How We Engage
Kroger’s open-door approach to community
engagement includes sharing updates on our
business, discussing community priorities, identifying
opportunities for collaboration and support,
advocating for policy changes and more.
We follow key principles as a trusted business wherever
we operate. These include:
•
Understanding national and local issues of importance
•
Fostering open dialogue with community leaders
•
Offering easy ways for our customers and students to
support our Zero Hunger | Zero Waste impact plan
•
Participating in and volunteering to serve community
and nonprofit organizations
•
Directing charitable donations to local causes and
programs, particularly those aligned to Zero Hunger |
Zero Waste
$2.3B
in charitable giving for our
communities since 2017
Investing in Our Communities
Kroger invests in initiatives and projects that
advance our company’s growth and strengthen the
communities where we live and work. We are making
investments in both our digital business and our brick-
and-mortar stores. In 2024, we are building more new
stores and managing more renovation projects than in
the past five years. This includes about 30 major store
projects in our communities.
We believe offering a combination of stores that are
fun to shop in and convenient delivery options is the
best way to bring more affordable fresh food to more
people across the country. We continue to invest in
improving the shopping experience and introducing
new mobile features that give customers more choices
in when and how they receive their groceries.
As Kroger grows, our communities benefit. Our capital
investments often create local jobs, such as our Kroger
Delivery fulfillment centers, temporary construction jobs
and growth in service industries supporting our new
stores and facilities. New jobs mean new opportunities
for our associates and greater positive economic impact
in the local communities we serve.
$3.6B
in spend with verified
diverse-owned suppliers
in 2023
$43M
in giving to the USO for active-duty
military service members
& families since 2010
Material Topic
LOCAL COMMUNITIES
46K
students engaged in
Kroger’s Zero Hunger |
Zero Waste plan
$46M
in customer-directed
Kroger Community
Rewards for local nonprofit
organizations in 2023
Our Approach
Introduction
Planet
2024 Kroger ESG Report
31
Appendix
Governance
People
Disaster Relief
Our customers and communities know they can
count on Kroger in their time of need. As an essential
business, our teams track and prepare for storms
throughout the year, routing trucks to warehouses
and stores so our customers can stock up on critical
supplies, and staging generators and other equipment
to move in quickly, restore power and open stores
if needed.
In 2023, Kroger provided nearly $1 million in disaster
relief funds and in-kind food, including a $500,000
grant to the American Red Cross Annual Disaster
Giving Program to help the organization respond
with care and comfort when disasters happen. We
also often support Feeding America food banks with
cash and food donations to help affected or displaced
individuals and families.
In 2023, Kroger supported local relief efforts after
destructive wildfires in Hawaii and helped communities
in Texas, Arkansas, Kentucky and Tennessee recover
after devastating tornadoes struck multiple cities
across these states.
In situations where the National Guard is deployed
to provide disaster relief, we may also work with
the United Service Organizations (USO) to deploy
a USO | Kroger Mobile Canteen to help feed
first responders. Learn more about our disaster
relief efforts.
Zero Hunger | Zero Waste
Kroger engages our associates, customers and
communities in our Zero Hunger | Zero Waste impact
plan. We work closely with hundreds of national and
local nonprofit organizations that help rescue surplus
food from stores and provide meals, and we donate
funds to other nonprofits helping end hunger and
waste in our communities.
During the 2023–2024 school year, more than 14,500
students across the U.S. earned recognition as
Kroger Zero Heroes. These Zero Hero student service
award winners completed 107,175 volunteer service
hours during this period, generating a community
impact value of $3.5 million. Thanks to their
efforts, we achieved positive impacts in more than
560 communities across the country.
We recognize Zero Heroes at three levels: students
achieving at least eight, 20 or 40 hours of service
for the academic year aligned with Zero Hunger |
Zero Waste. Last year, we honored 101 students at the
highest level of 40+ hours of service.
After five years, more than 46,400 youth Zero Heroes
have completed over 365,500 volunteer service
hours, resulting in a total community impact value
of $10.8 million.
Youth Advisory Council
In 2023, for the second consecutive year, Kroger
created a 15-member Youth Advisory Council of
student leaders across the U.S. willing to invest time to
discuss pressing issues in their communities, including
food insecurity, climate impacts, waste and recycling,
and more. Each student participated in Kroger-led
collaborative sessions with guest speakers and design
challenges to create Zero Hunger | Zero Waste-aligned
community impact projects, supported by charitable
micro-grants from Kroger.
The Zero Hunger | Zero Waste
engagement program is offered
to all students ages 14 to 24 in
the United States. Learn more
about the InnerView platform at
www.innerview.org.
In stores and through www.kroger.com and our banner
websites, we offer easy ways for our customers to
join our mission, including donating to help nourish
our communities and providing information about
recycling programs, tips for cooking healthier, more
sustainable meals, and more.
Our Retail Operations and Corporate Affairs teams
work together to recognize store teams and associates
as Zero Heroes for making a difference every day
by donating food and volunteering to serve at local
agencies in our communities.
In 2024, we introduced an Advanced Zero Hunger |
Zero Waste Certification for store associates, delivered
through our Fresh Start training platform. Through
this new skill-building program, associates can level
up their knowledge on retail store programs designed
to support Zero Hunger | Zero Waste, including best
practices for keeping food fresh, marking down items
for faster sale, donating surplus food, recycling unsold
food and more.
Youth Zero Heroes
We also encourage students in our communities to
support Zero Hunger | Zero Waste. We introduced
a Zero Heroes youth engagement and recognition
program in 2019 in collaboration with InnerView, a
leading platform to empower student volunteers in
support of the UN Global Goals.
Through the Zero Heroes recognition program, high
school students volunteer to serve local agencies and
earn awards for helping end hunger and waste. They
also develop a personal community service résumé
detailing their hours of service. Sample activities
include volunteering at a local soup kitchen, packing
meals at a food bank, organizing a food drive or
starting a school recycling program.
Academic Year
2019–2020
2020–2021
2021–2022
2022–2023
2023–2024
5-Year Totals
Community Impact
Students taking action
to support Zero Hunger |
Zero Waste
4,914
7,259
9,042
10,555
14,656
Local communities with
positive impacts
231
361
439
545
561
Student volunteer hours to
end hunger and waste
37,000
68,900
71,000
81,500
107,175
365,575
InnerView
1
community
impact value
$0.9M
$1.7M
$2.1M
$2.6M
$3.5M
$10.8M
Building Momentum: Student Zero Heroes in Our Communities
1. Kroger developed the youth engagement program in collaboration with InnerView, a leading platform to empower student volunteers. Impact reporting data is
provided by InnerView.
Our Approach
Introduction
Planet
2024 Kroger ESG Report
32
Appendix
Governance
People
Charitable Giving
Kroger has a long history of giving back generously
to our communities. We support national and local
nonprofit organizations by donating food and funds to
help our neighbors and neighborhoods.
In 2023, Kroger donated a total of $329 million to our
communities in food and funds combined, including
$256 million to hunger relief. Our strategic approach
to charitable giving includes several ways we support
national partners and local communities:
•
In-kind food and product donations to advance
Zero Hunger | Zero Waste
•
Company-funded donations to nonprofit
organizations that meet our guidelines
•
Grants from The Kroger Co. Foundation, the
company’s private foundation established in 1987
•
Grants from The Kroger Co. Zero Hunger |
Zero Waste Foundation, a nonprofit public charity
established in 2018 to align giving to our impact plan
•
Local customer-directed donations to nonprofit
organizations through Kroger Community Rewards
We align the majority of the company’s charitable
giving to national, regional and local organizations
and programs that feed people. In 2023, we directed
a total of nearly 455 million meals to our communities,
bringing our cumulative total to 3.4 billion meals since
2017. This includes work with local food banks and
pantries to support innovative food delivery models,
including mobile or stationary food pantries that
increase access to fresh food.
We maintain long-standing relationships with national
organizations that provide key services in our local
communities. These include the American Red Cross,
Feeding America and its network of affiliated local
food banks, No Kid Hungry, WWF and the USO,
among others.
Prioritizing Hunger Relief
Several years ago, we began aligning more of Kroger’s
total charitable giving to our Zero Hunger | Zero Waste
impact plan. This includes cash donations and gift
cards, foundation grants, surplus fresh food donations
through our Zero Hunger | Zero Waste Food Rescue
program, and other food and product donations.
At the local level, our charitable dollars help Feeding
America-affiliated food banks and other nonprofit
organizations build capacity to pick up more surplus
fresh food from our stores, test and implement new
food recovery and delivery models, and feed more
people in need. In 2023, the Zero Hunger | Zero Waste
Foundation also supported The Farmlink Project to
expand on-farm food rescue and No Kid Hungry’s
School-Based Health Centers program to improve food
and nutrition security among children.
In addition to company donations, we invite our
customers to round up their purchase to the nearest
dollar when they shop with Kroger or donate directly to
the Zero Hunger | Zero Waste Foundation to support
our mission to end hunger and waste. Funds help
provide grants to eligible organizations aligned with
our impact plan.
In 2023, our generous customers donated a total
of $10 million to the Zero Hunger | Zero Waste
Foundation, which granted these funds to designated
local hunger relief agencies.
For more details on the work of our nonprofit
foundations and examples of specific grants, please
see The Kroger Co. Foundation 2024 Report and
The Kroger Co. Zero Hunger | Zero Waste Foundation
2024 Report.
Donating Surplus Food
Every day, associates across our family of companies
recover and donate surplus fresh food for our
communities through our Zero Hunger | Zero Waste
Food Rescue program. Kroger developed and
introduced this industry-leading program in
collaboration with Feeding America more than 15 years
ago, then called the Perishable Donations Partnership.
Every Kroger-operated store is linked to a local hunger
relief agency with the capacity to safely pick up and
redistribute surplus fresh food. We work closely with
the Feeding America network of food banks and other
hunger relief partners to continually improve our Food
Rescue program, expand the number of items eligible
for donation, and recover more fresh, nutritious food.
In 2023, 100% of our stores actively participated
in the Food Rescue program. Including surplus
food recovered from our supply chain facilities and
customer fulfillment centers, Kroger donated a total of
114 million pounds of surplus food for our communities.
Since 2017, our associates have donated nearly
700 million pounds of surplus food for our neighbors.
Food
Surplus Fresh Food Rescue
Funds
Donations Directed to
Hunger Relief
Total Meals
Food + Funds = Meals
Surplus Food Donations
(pounds)
Corporate & Foundation
Charitable Donations
(dollars)
Total Meals Donated
to Communities
2017
91M
$200M
325M
2018
100M
$192M
316M
2019
101M
$205M
493M
2020
90M
$213M
640M
2021
94M
$210M
546M
2022
106M
$253M
599M
2023
114M
$256M
455M
Total
696M
$1.5B
3.4B meals
Charitable Giving for Hunger Relief Since 2017
Our Approach
Introduction
Planet
2024 Kroger ESG Report
33
Appendix
Governance
People
Through these mobile canteens, the USO provides
temporary access to nutritious food, strengthening our
service members and their families and offering warm,
comforting meals in remote locations where troops are
deployed. In 2023, the USO | Kroger Mobile Canteens hit
the road to support over 40 military events and serve
more than 15,000 people across the nation, including
Family Days, Fleet Weeks and training exercises.
Kroger Community Rewards
We give our customers an easy way to direct
Kroger’s charitable donations to the local nonprofit
organizations that matter most to them through Kroger
Community Rewards. This program makes it easy for
eligible nonprofit organizations of all sizes—including
community schools, teams, churches, animal shelters
and other groups—to raise money for their cause.
Nearly 3 million loyal customers and thousands of local
organizations are currently enrolled in Community
Rewards. In 2023, Kroger donated a total of $46 million in
company-funded Community Rewards to local nonprofit
organizations in towns and cities across the country.
Supporting the Military
Supporting service members and their families is
a priority for our company. Kroger has contributed
more than $43 million in support to the USO through
corporate funds and customer donations during
the past 14 years. We are recognized as the largest
cumulative donor in the organization’s 82-year history.
The USO | Kroger Mobile Canteen is a company-wide
collaboration between the USO and Kroger. Working
together, we developed a new way to extend the
Mobile USO fleet with custom trucks and mobile
canteens to deliver food and support to military
communities that are currently underserved. Three
USO | Kroger Mobile Canteens are stationed in Atlanta,
Kansas City and Salt Lake City to serve military
members and families when needed most.
Total Charitable Giving by State: 2023
Food and Funds Donated to Our Communities
1
Funding Range
Less than $1M
$1M–$5M
$5M–$15M
More than $15M
1. State totals reflect Kroger’s operating presence in the state; company, foundation and in-store customer donations; and the value of surplus fresh food and
in-kind food donations
Our Approach
Introduction
Planet
2024 Kroger ESG Report
34
Appendix
Governance
People
Planet
Kroger aims to do our part to protect natural resources
and create a cleaner energy future. We focus on
reducing greenhouse gas (GHG) emissions and waste
in our operations, and we encourage our suppliers
to adopt more sustainable ways to grow, make and
package products for our customers.
In This Section
36
2023 Highlights
37
Climate Impact
42
Waste & Circularity
48
Biodiversity & Resource
Conservation
Material Topics
• Energy & GHG Emissions
• Climate Change Resilience
• Waste & Circularity
• Food Waste
• Biodiversity & Conservation
• Agricultural Practices
• Water
People
Our Approach
Introduction
Appendix
Governance
2024 Kroger ESG Report
35
Planet
28.9M
pounds of Fair Trade Certified™
ingredients sourced for
Our Brands products
Planet: 2023 Highlights
Related Resources
NO-DEFORESTATION COMMITMENT:
OUR BRANDS
SEAFOOD SUSTAINABILITY POLICY
OUR BRANDS
SUSTAINABLE PACKAGING GOALS
82%
company-wide waste
diversion from landfill
94%+
alignment of palm oil,
beef, soy and paper
volumes sourced for
manufacturing plants
and meat counter with
no- or low-deforestation
risk definitions
96%+
alignment of Seafood Department
volumes with each seafood
sustainability goal element
Kroger’s Zero Hunger | Zero Waste impact plan expresses our ambition
to reduce emissions, operational waste and food waste, and improve
Our Brands
packaging sustainability. We also encourage our suppliers
to protect natural resources, habitats and wildlife on land and in water.
2,190
retail stores use infrared refrigerant leak
detection technology
95%+
of stores with
food waste
recycling programs
52%
Our Brands product
packaging, by weight,
that is recyclable,
reusable or compostable
56%
cumulative electricity
avoided in grocery
stores since 2001
People
Our Approach
Introduction
2024 Kroger ESG Report
36
Appendix
Governance
Planet
15K
stand-alone refrigerant cases
using propane refrigerant
Just as changing temperatures and weather patterns may affect our business
operations and supply chain, energy sourcing and GHG emissions from
our operations may affect our planet. That’s why we evaluate and manage
the company’s resilience to climate change and take steps to transition our
operations to cleaner, more sustainable energy systems.
Climate Impact
Goal: 30%
reduction in Scope 1 and 2 GHG
emissions by 2030
Energy & GHG Emissions
Our executive leadership team and Public
Responsibilities Committee of the board oversees
work to manage climate impacts and resilience.
Multiple internal teams across lines of business work
together to establish and achieve goals, including
Retail Operations, Supply Chain, Manufacturing,
Sourcing, Finance and Corporate Affairs.
Our strategy to reduce our impacts on the environment
includes the goals we set, the actions we take to
achieve our goals and our assessment of related risks
and opportunities. We put this strategy into action
when our business units identify emissions-reduction
opportunities, when we pilot new technologies to
understand if and how they will benefit us, and when our
teams develop the operational policies, roadmaps and
financial plans to reduce our emissions over time.
Additionally, Kroger monitors and responds to a
changing climate—such as changes in temperature
and precipitation—to maintain our ability to operate
and serve our customers. We also consider how
new technology, consumer trends and regulatory
requirements may present risk or opportunity for
our business.
Emissions Disclosure
In 2023, Kroger’s Scope 1 and 2 (market-based) GHG
emissions increased slightly year over year; however,
progress toward our 2030 goal remains positive with
a 12% cumulative reduction since 2018.
By focusing on improving our data management and
calculation accuracy, we are laying the foundation for
future mandated disclosures. In 2024, we completed
our first comprehensive Scope 3 GHG emissions
inventory (for 2021). We expect to conduct full
Scope 3 inventories in future years.
Material Topics
ENERGY & GHG EMISSIONS
CLIMATE CHANGE RESILIENCE
110
stores with
EV charging
stations
MTCO
2
e = metric tons of carbon dioxide equivalent
Total GHG Emissions
Scope 1 and 2 emissions, market-based—MTCO
2
e
2018
2019
2020
2021
5,774,060 (baseline)
5,967,865
5,275,845
5,251,448
2022
2023
4,894,705
5,081,613
(-12.0% from baseline)
2025
all new stores
expected to use
CO
2
-refrigerant systems
In 2022, Kroger’s Retail Operations, Supply Chain,
Sourcing and Corporate Affairs teams developed
an initial portfolio of projects to achieve our current
GHG reduction goal of 30% reduction by 2030.
We summarized and shared this approach in our
initial GHG Reduction Goal Roadmap in early
2023. We continue to update this model to reflect
changes in decarbonization activities over time,
the latest learnings from active pilots and possible
future projects.
Emissions-reduction projects include:
•
Reducing our reliance on traditional electricity
through operational efficiencies
•
Reducing refrigerant emissions by minimizing
leaks and using lower-global warming potential
(GWP) refrigerants
•
Transitioning to electric vehicles in our fleet
•
Piloting new on-site solar installations
•
Purchasing green power from our utilities
•
Realizing the benefits of grid-greening (passive
procurement) in our emissions factors over time
We consider each GHG reduction opportunity in the
context of possible impacts to our business, including
emissions, costs and capacity to do the work.
People
Our Approach
Introduction
2024 Kroger ESG Report
37
Appendix
Governance
Planet
Emissions Category
2023 Emissions
(MTCO
2
e)
Year-Over-Year
Change (%)
Scope 1 total emissions
2,288,734
-2.0%
Scope 1 (stationary)
552,154
-4.5%
Scope 1 (mobile)
371,421
-11.6%
Scope 1 (refrigerant emissions)
1,365,158
+2.1%
Scope 2, location-based (purchased electricity)
2,739,997
+1.6%
Scope 2, market-based (purchased electricity)
2,792,879
+9.1%
Total (S1 + S2 location-based)
5,028,731
-0.1%
Total (S1 + S2 market-based)
5,081,613
+3.8%
Scope 3 (partial)
1
1,909,850
-2.9%
2023 GHG Emissions Footprint
1.
Scope 3 emissions reflect the following categories: fuel- and energy-related activities (not included in Scope 1 or 2), waste generated in operations, business travel, employee
commuting, processing of sold products and investments. Our 2022 Scope 3 numbers have been adjusted to 1,967,029 MTCO
2
e due to a calculation adjustment; this is the value
to which we are comparing 2023 Scope 3 emissions. We are not disclosing a full Scope 3 emissions inventory for 2023, opting to refine our 2021 baseline instead, which can
serve as a foundation for future emissions inventories
Scope 1
emissions decreased by 2% in the 2023
reporting year. Stationary emissions decreased
due to lower consumption. Emissions from Kroger
Delivery vans increased last year as fulfillment centers
added more routes; however, improved data quality
on internal fleet fuel consumption helped offset the
impact of increased routes. We are experiencing a
slightly higher leak rate as we transition to lower GWP
refrigerants in existing equipment. Natural refrigerants
in new equipment also have a higher leak rate. Over
time, these fully adjusted systems, the decreasing
GWP of our refrigerant fleet and an optimized leak
detection system should yield a decrease in emissions.
Scope 2
emissions increased last year: a 1.6% increase
in location-based emissions and a 9.1% increase in
market-based emissions. Total electricity use decreased
company-wide, and our renewable electricity purchases
also declined due to unfavorable prices in certain
markets. We continued adding supplier-specific
emissions factors, however we also rely on default
market-based emissions factors. These factors evolve
over time to reflect what’s left in the grid after users
account for renewable power, ultimately creating ‘dirtier’
factors, negatively impacting our emissions.
Scope 3
emissions reported in this year’s inventory
decreased by 2.9% versus the prior year. Emissions
from business travel, processing of sold products
and investments increased, while emissions from
waste, fuel- and energy-related activities (FERA),
and employee commuting decreased. Adjustments in
emissions factors were a leading contributor to these
results as well as increased business travel and changes
in waste management practices.
Normalized emissions (per 1,000 square feet)
increased from 21.84 to 23.82 in 2023, reflecting these
operational changes.
Kroger uses the GHG Protocol methodology to
calculate our GHG emissions. More detailed disclosure
is provided in our CDP Climate disclosures and in the
Appendix of this report.
Energy Efficiency
In 2023, we continued implementing projects that
reduce energy consumption in our stores. We placed
glass doors on open refrigerated cases in our stores,
saving an average 225,000 kilowatt-hours (kWh) of
electricity and 16,000 therms of natural gas per store
annually. We also transitioned multiple areas of our
stores to new or more efficient LED lighting, including
overhead lighting (35,000 kWh saved per store),
parking lot lighting (100,000 kWh saved per store),
open medium-temperature cases (10,000 kWh saved
per store) and track lighting in Produce departments
(23,000 kWh saved per store). Kroger has achieved
56% cumulative electricity avoided in stores compared
to a 2001 baseline.
Renewable Energy
Kroger currently has solar arrays installed at 15
facilities, which generated more than 6.6 million
kilowatt hours (kWh) of renewable power in 2023.
Of that, more than 1.9 million kWh is claimed by Kroger
as zero-carbon energy in our GHG emissions inventory.
We also operate two facilities equipped with anaerobic
digestion (AD) technology, which processes food waste
or food production by-products into biogas, which in
turn can be converted to renewable electricity.
In 2023, Kroger purchased 97,500 MWh of zero-
carbon power from our energy providers, including
solar and wind projects in Texas and West Virginia.
This is a decline from the prior year due to rising costs
in certain markets. In 2024, we are procuring new
zero-carbon power from projects in Illinois, Ohio and
Virginia. This includes becoming a major buyer of the
Cincinnati Zoo & Botanical Gardens’ 30-MW solar farm
on its Bowyer Farm property outside of Cincinnati.
Kroger also accounts for the increasing amount of
lower-carbon and renewable electricity generation
sources coming online in different regions in our
GHG inventory.
Refrigerant Emissions Reductions
During the last decade, we have continued to
transition away from ozone-depleting substances to
other refrigerants across our systems. In our stores,
we use a four-pronged approach to managing
refrigerant emissions:
•
Proactively monitoring, mitigating and
reducing leaks
•
Replacing aging refrigeration systems to
improve energy efficiency and reduce refrigerant
charge/emissions
•
Properly managing refrigerant inventory to reduce
waste and promote responsible reclaim practices
•
Transitioning to refrigerants with a lower GWP.
Kroger is part of the U.S. Environmental Protection
Agency’s (EPA) GreenChill program, through
which we set annual targets to reduce refrigerant
emissions in retail stores
Kroger’s Refrigerant Management Policy for our
stores outlines the company’s procedures and
documentation for all refrigerant gas handling.
Kroger has a zero-tolerance leak-rate policy, and
all relevant associates and technicians must read,
sign and adhere to it. In 2023, the refrigerant
leak rate in our stores increased slightly to 11.4%
because the total refrigerant charge in our stores is
decreasing faster than the amount of refrigerants
leaked is decreasing. This is the result of moving
to newer, more efficient systems that require less
charge. We expect our leak rate and resulting GHG
emissions to decline over time as we move to lower
GWP refrigerants and optimize our systems to
accommodate these refrigerants.
We are actively transitioning stores to use new infrared
detectors that identify lower concentrations of leaked
refrigerants. By the end of 2023, we had transitioned
2,190 stores to this new technology and expect to
transition 100% of stores by the end of 2026. This
timeline has been extended due to longer lead times
for labor and equipment.
People
Our Approach
Introduction
2024 Kroger ESG Report
38
Appendix
Governance
Planet
In addition, we transition facilities to lower-GWP
refrigerants, including in California to achieve the
necessary portfolio GWP in relevant stores by
or before regulatory timelines. We also operate
and maintain our company-wide refrigeration
fleet in anticipation of refrigerant supply changes
resulting from the federal American Innovation and
Manufacturing Act.
In 2023, we opened a new retail store with carbon
dioxide (CO
2
) refrigerant technology to evaluate and
inform the future rollout of this technology in our
stores. We are building six additional stores with this
technology in 2024, and we plan to build all new stores
with CO
2
refrigerant systems starting in 2025.
In addition, we are transitioning to propane
refrigerant, which has lower GWP, in all stand-alone
refrigerated cases in stores. More than 15,000 existing
units use propane today, and all new stand-alone
cases will use propane moving forward.
In general, we plan to use lower-GWP refrigerants that
are commercially and financially viable, which includes
evaluating whether new refrigerants can be dropped
into an existing system or whether a new system
is required.
Kroger continues to track emerging refrigeration
technologies and is an active member of the North
American Sustainable Refrigeration Council, which
aims to help retailers overcome barriers to the
adoption of natural refrigerants.
Mobile Efficiency & Electrification
We continue to refresh our truck fleet, replacing
older vehicles with more fuel-efficient models.
In 2023, we replaced more than 200 trucks with
new units. As a long-time partner of the U.S. EPA
SmartWay program, we reduce truck miles and
emissions through dynamic routing, truck speed
limits, automatic shutdown for truck idling and
automatic transmissions to manage gear splits.
During the past several years, we converted all new
refrigerated trucks in California serving our Ralphs
and Food4Less divisions to hybrid electric/diesel
trailers. In 2023, we began testing electric Kroger
Delivery vans at our Monroe, OH, fulfillment center
to optimize routing and charging systems for our
Delivery fleet moving forward. We also started
piloting our first electric yard tractors in 2023 and
anticipate receiving our first on-highway electric
tractors in 2025.
As of the end of 2023, Kroger had installed EV
charging at 110 stores in the following states:
Arizona, California, Colorado, Georgia, Indiana,
Nevada, Ohio, Oregon, Washington and Wyoming.
We will have EV chargers at approximately 140
stores by the end of 2024. Our infrastructure
includes several direct current super-fast chargers
capable of generating 350kW—several times
more power than typical fast chargers—to offer
convenient charging services to our customers.
Since 2020, EV chargers installed at our stores
have provided over 24 million kWh of electricity
to local consumers through more than 1 million
charging sessions.
Emissions-Reduction Goals
Kroger’s current goal is to reduce GHG emissions
from our operations by 30% by 2030, from a 2018
baseline. The goal was developed using climate
science, supporting a well-below 2°C climate
scenario according to the absolute contraction
method. Our Facility Engineering, Sourcing
and Supply Chain teams have been diligently
implementing energy efficiency, renewable
energy and refrigerant emissions-reduction
programs to address operations emissions.
In 2022, we began evaluating Science Based
Targets initiative (SBTi) requirements with
the intent to submit targets for validation. We
completed two years of work with a consulting
partner to assess the feasibility of setting new
SBTi-aligned targets. Our extensive analysis
established our first complete Scope 3 GHG
emissions inventory; refreshed our initial Scope 1
and 2 GHG reduction roadmap for 2030 to reflect
the latest developments; and reviewed SBTi
requirements for Scopes 1, 2 and 3 on specific
time horizons to determine how they could affect
Kroger’s operations and financials.
We completed this comprehensive work to evaluate
feasibility for new SBTi-aligned targets in mid-
2024. We learned that the detailed SBTi framework
and target-setting requirements for validation are
challenging for our business to achieve in a way that
is sustainable and enables future growth.
As a result, we elected not to submit targets at this
time. Kroger’s ambition is to achieve our current
Scope 1 and 2 goal and continue reducing GHG
emissions beyond 2030.
More specific insights from the target-setting
work include:
Scope 1 and 2 emissions:
Based on what we know
at this time, we are re-affirming our current Scope 1
and 2 goal to reduce emissions by 30% from a 2018
baseline. We believe this is still ambitious for Kroger
but achievable with our current business model
and plans. We will revisit longer-term goal-setting
options at a later time.
Scope 3 Energy & Industry (E&I) emissions:
When we reviewed the SBTi requirements for
retailers with fuel businesses, it became clear that
we cannot achieve required emissions reductions
solely through the transition to alternative fuels
like biodiesels and electric vehicles in the near
term. We will continue to monitor consumer
fuel consumption patterns and EV adoption
projections over time to inform future goals.
Scope 3 Forest, Land and Agriculture (FLAG)
emissions:
Required FLAG targets in the current
SBTi framework complicate the target-setting
process. Calculating FLAG emissions is an
emerging and complex science that continues
to change as guidance is finalized. As a result,
implementing and measuring emissions
reductions with confidence is challenging in the
near term. We believe any work to reduce Scope 3
emissions should be based on real data to inform
a realistic roadmap for reductions.
We are encouraged by opportunities to
collaborate on Scope 3 emissions calculation and
management across the value chain. We remain
committed to reducing our GHG emissions and
will closely monitor future developments.
People
Our Approach
Introduction
2024 Kroger ESG Report
39
Appendix
Governance
Planet
Scope 3 GHG Emissions Baseline Findings
In 2024, Kroger completed its first full Scope 3 GHG
emissions inventory with support from a third-party
consultant (in the past, we have reported partial Scope 3
emissions data). This comprehensive process highlighted
the complexity of calculating and managing upstream
and downstream value chain emissions, particularly
for retailers.
There are two major emissions categories in Kroger’s
value chain: upstream Purchased Goods & Services
(PG&S), which includes both E&I and FLAG emissions,
and downstream Use of Sold Products. Collectively, these
two categories make up approximately 90% of our total
Scope 3 GHG emissions.
E&I emissions result from a broad array of activities,
such as the processing and distribution of ingredients,
packaging and finished products; technology we use
in our operations; and legal and consulting services.
FLAG emissions are produced specifically by on-farm
activities in our agricultural supply chains. These include
land-use change and biogenic and fossil fuel-based
sources of emissions. Our Scope 3 baseline exercise
showed that products like beef, dairy and other animal
proteins are some of the larger contributors to PG&S
upstream emissions.
Scope 3 Emissions Category
MTCO
2
e
Percent of total
Upstream
1
Purchased Goods & Services—Energy & Industry (E&I)
31,298,881
26.5%
1
Purchased Goods & Services—Forest, Land & Agriculture (FLAG)
32,098,606
27.2%
2
Capital Goods
571,094
0.5%
3
Fuel & Energy Emissions
1,122,157
1.0%
4
Upstream Transportation & Distribution
5,229,051
4.4%
5
Waste from Operations
388,072
0.3%
6
Business Travel
17,435
0%
7
Employee Commuting
787,816
0.7%
Downstream
10
Processing of Sold Products
3,904
0%
11
Use of Sold Products
42,771,508
36.2%
12
End-of-Life Treatment of Sold Products
3,671,175
3.1%
15
Investments
58,057
0%
Total
118,017,757
Comprehensive Scope 3 GHG Emissions 2021 Baseline Inventory Details—MTCO
2
e
Downstream, emissions from Use of Sold Products
include the impact of fossil fuels sold in our operations,
most notably gasoline and diesel fuel sold in our fuel
centers. The sale of propane tanks, charcoal grills and
other fossil-fueled appliances are a small portion of
this emissions category. The category of end-of-life
treatment of sold products primarily reflects estimates
for the food waste and packaging in products that our
customers buy, use and dispose of.
Business travel, employee commuting, waste from
operations, processing of sold products and investments
are relatively small parts of our Scope 3 footprint.
Given the breadth and depth of our supply chain,
it will take time to improve our calculation of these
emissions in the future. This continues to be a topic
of robust discussion among industry associations
and we believe that collaboration has the potential to
accelerate adoption of harmonized emissions metrics
and management.
Purchased Goods &
Services—E&I emissions
26.5%
Remaining
Scope 3 emissions
10.1%
Purchased Goods &
Services—FLAG emissions
27.2%
Use of Sold
Products emissions
36.2%
Comprehensive Scope 3 GHG Emissions 2021 Baseline Inventory
Summary of Most Significant Categories as Percentage of Scope 3 Emissions
1
1.
Percentages are calculated as total of Scope 3 GHG emissions for 2021. In total, Scope 3 GHG emissions comprise approximately 96% of
total corporate Scope 1, 2 and 3 GHG emissions
People
Our Approach
Introduction
2024 Kroger ESG Report
40
Appendix
Governance
Planet
Climate Change
Resilience
As a responsible business, we continually evaluate
the resilience of our facilities and operations amid
changing temperatures and weather so we can
continue to serve our customers well into the future.
Kroger’s management approach to climate resilience
includes conducting a quantitative climate risk
assessment to determine the likelihood of different
physical climate risks affecting our operations, such
as drought, extreme heat or extreme precipitation.
We assessed risk at representative facilities in
different geographies to determine whether future
impacts could potentially increase operating costs
for these facilities.
We used climate modeling in three scenarios
reflecting different Representative Concentration
Pathways (RCPs): median under 2°C (cool RCP 4.5
models); 2°C to 4°C (warm RCP 4.5 models); and over
4°C (RCP 8.5 models). These were taken from the
1/16th degree localized constructive analogs (LOCA)
climate dataset for 2030 and 2050 timeframes.
For each physical climate risk, we also identified
potential financial impacts. We recognize the
limitations of these metrics to capture the potential
long-term financial impacts of climate risks; however,
they provide important context. Working with
a third-party consultant, we concluded that the
physical risks modeled do not pose a substantive
financial threat to our operations.
We will revisit this analysis periodically and plan
to expand it to include a climate risk assessment
using scenario modeling for select parts of our
supply chain. This will reflect results from our first
comprehensive Scope 3 GHG emissions baseline
to prepare for future climate risk disclosure
requirements. Please see the previous page for
more details.
To prepare for and manage potential physical
climate risks, including natural disasters and business
disruptions to our supply chains, we maintain over
200 business resilience plans. Kroger has also
installed technologies and developed processes to
enable our stores, plants and distribution network to
respond quickly and remain operational to serve our
customers and communities.
We monitor energy availability and costs to help
anticipate how changing climate patterns, such as
increasing temperatures, could affect our future
energy-sourcing costs and activities.
We also assess the transitional climate risks due
to legislation regarding refrigerant use and the
transition to lower-GWP refrigerants. As a result
of state and federal requirements regarding
the phasedown of hydrofluorocarbon (HFC)
refrigerants, we anticipate steadily replacing
refrigerant infrastructure across our store portfolio
to reach required levels, which could incur
additional costs.
Kroger continues to monitor this evolving topic
and engage subject matter experts and others
to understand what is most important to our
customers, communities and investors.
People
Our Approach
Introduction
2024 Kroger ESG Report
41
Appendix
Governance
Planet
We are moving toward more circular systems in our operations and in
Our Brands
product packaging to reduce the impact of waste on our planet.
We focus on waste reduction, reuse and recycling opportunities to advance
progress on our goals.
Waste & Circularity
52%
of retail store food waste
diverted from landfills
2.2M
pieces of
Our Brands
plastic packaging
our customers sent to TerraCycle® for
recycling since 2021
150
retail stores
achieving 90%+
waste diversion
from landfill
Our Approach
Leaders across our lines of business work collaboratively
to reduce waste company-wide. Guided by our
strategic approach to waste reduction and diversion,
each supermarket division has an Expense, Sanitation
and Sustainability Manager who implements programs
with oversight from a centralized Retail Operations
team. These division managers oversee waste diversion
efforts, including operational waste recycling and food
waste recycling.
Retail store managers support everyday execution of
these programs to make sure we are making progress
on our goals. Similarly, our Supply Chain team has
sustainability leads who help guide waste reduction and
waste recovery initiatives in these facilities.
We express our ambition through Kroger’s Zero Hunger
| Zero Waste impact plan. We aim to meet or exceed
a 90% waste diversion rate across the company. We
expect to continue increasing the amount of waste we
divert from landfills through enhanced collaboration
across our facilities; the increased rollout of convenient
food waste recycling programs; and the expanding role
of reusable plastic containers.
In 2023, our company-wide waste diversion rate held
steady at 82%. Total waste generated (regardless
of destination) decreased slightly, as did the
amount of waste we sent to landfills and waste-to-
energy processing.
The total volume of food waste diverted from landfills
increased, although there was year-over-year variation
in the volumes sent to different food waste recycling
outlets given the expanding role of anaerobic
digestion (AD) programs in our stores. Total annual
food and non-food donations increased. In 2023,
150 stores reached 90%+ waste diversion, earning
zero-waste status.
Reusable plastic containers (RPCs) in the distribution
of produce, eggs, milk, meat and bread help us reduce
the amount of waste we produce in the first place. Our
adoption of reusable containers is expanding to reach
more functions and facilities.
We have processes in place to manage all damaged and
unsalable products that have hazardous characteristics.
Universal-waste lamps, batteries, aerosol cans and all
pharmaceuticals are also part of our waste management
programs. The UL WERCSmart® system allows us to
identify hazardous materials in our products to help
ensure safe storage, transportation and disposal.
Engaging Our Associates
Kroger’s associates help achieve our Zero Hunger |
Zero Waste mission by implementing store and supply
chain facility programs every day to reduce waste.
In 2023, we conducted several associate-facing
campaigns for Earth Day, Hunger Action Month and
Kroger’s Zero Hunger | Zero Waste impact plan to
create greater awareness and engagement. These
campaigns encouraged associates to sign the Zero
Waste Warrior Pledge, which emphasizes daily waste
reduction and recycling efforts.
We also developed and introduced a new series of
internal Zero Hunger | Zero Waste training modules
on the following topics: general markdowns, produce
markdowns, Food Rescue (surplus food donations),
food waste recycling, plastic film recycling and
cardboard recycling programs.
On Earth Day 2024, we launched a Zero Hunger |
Zero Waste Certification program on our associate
training platform to improve associate engagement
and reinforce their connection to Kroger’s purpose
and impact plan. Store associates who complete all six
training modules listed above become certified and are
recognized by their store manager.
1,610
stores with food
waste de-packaging
programs by end
of 2024
Material Topics
WASTE & CIRCULARITY
FOOD WASTE
Company-Wide Waste Diversion-from-Landfill Rate
2021
79%
2022
2023
82%
82%
People
Our Approach
Introduction
2024 Kroger ESG Report
42
Appendix
Governance
Planet
2022 Weight
(short tons)
2023 Weight
(short tons)
2022 to 2023 Year-
Over-Year Change
(%)
Reuse (RPCs)
2
303,339
347,634
+14.6%
Donations
3
55,938
61,983
+10.8%
Animal feed
71,238
62,418
-12.4%
Anaerobic digestion (AD)
4
80,223
118,138
+47.3%
Composting
106,011
102,415
-3.4%
Baled cardboard
791,303
749,722
-5.3%
Baled plastic
28,715
29,215
+1.7%
Wood & pallets
919,513
738,876
-19.6%
Other recycling
5
218,294
219,705
+0.6%
Waste to energy
6
33,031
5,254
-84.1%
Landfill
541,015
526,978
-2.6%
Total waste (excluding reuse)
2,845,282
2,614,703
-8.1%
Total waste footprint
(including reuse)
3,148,621
2,962,337
-5.9%
Diversion
81.8%
82.0%
+0.2%
Waste Management Data
1
2023 Performance—short tons
1.
Data reflects calendar year with the exception of construction waste, which reflects fiscal year. Waste is managed and reported to Kroger by our different waste and
recycling haulers. Waste data excludes office locations and salvage centers, which represent very small proportions of our waste footprint. Table may not sum due
to rounding
2.
Total waste generated excludes the reuse of reusable plastic containers (RPCs) in our supply chain network, though we do include these in our waste
diversion calculation
3.
Donation data primarily reflects food donations, with a small amount of non-food donations
4.
AD weights increased significantly in 2023 as Kroger expanded the use of AD programs and de-packaging solutions in our stores
5.
Construction project waste and recycling data excludes minor capital projects
6.
Some volume classified as waste-to-energy in previous years was found to be going to AD (a by-product of which is fuel that is used to generate energy on-site).
A small portion of the volume ended up going to compost and animal feed
Managing Food Waste
Food waste in landfills is a major contributor
to climate change. Keeping food waste out of
landfills is a strategic part of Kroger’s Zero Hunger
| Zero Waste impact plan. We focus on two
main areas:
•
Reducing the total amount of food waste
generated in our stores by 50% (2017 baseline)
•
Improving how we manage remaining food
waste by diverting 95% or more from landfills
We do this by selling through as much food as we
can, safely donating eligible food that can no longer
be sold, and increasing the amount of remaining
food waste sent to food waste recycling programs
to ensure as little food as possible ends up in
landfills, where it produces GHG emissions.
Food Waste Diversion
To prevent fresh food from being wasted in the
first place, we aim to sell as much as possible in
our stores. Established markdown programs in all
fresh departments make items more affordable
and encourage faster sale. Our produce markdown
(redbag) program, through which we discount
and sell imperfect produce, is a customer
favorite. Kroger also developed automated and
dynamic markdown systems for more consistent
program execution.
Every day, our associates rescue remaining surplus
fresh food to feed people in our communities. Kroger
donates eligible fresh safe food to hunger relief
organizations in our local communities. In 2023, we
donated more than 114 million pounds of surplus
food to Feeding America’s network of food banks
and agency partners through our Zero Hunger |
Zero Waste Food Rescue program.
Any remaining unsold food that cannot be donated
is diverted through a combination of animal feed,
composting, AD and biodiesel generation, each with
their own benefits for Kroger and the environment.
Over time, our goal is to increase the number of
facilities that participate in food waste recycling.
We currently operate food waste recycling programs
in 97% of our stores (95% at the end of 2023),
achieving our goal of 95% store participation two
years ahead of schedule. In 2023, we launched
food waste recycling programs in more than 100
retail stores.
Kroger also introduced a new anaerobic digestion
(AD) recovery program in a significant number of
stores last year. Our primary AD program provider,
Divert, Inc., offers innovative de-packaging
technology that eliminates the need to remove food
from packaging on-site before recycling, simplifying
the process for our store associates and making
it easier to recycle store food waste in day-to-
day operations.
By the end of 2023, more than 1,110 Kroger-operated
stores had this Divert de-packaging solution in place.
In 2024, we are rolling the program out to over 500
more stores, seven distribution centers and seven
fulfillment centers.
People
Our Approach
Introduction
2024 Kroger ESG Report
43
Appendix
Governance
Planet
Our Food Waste Footprint
We calculate our food waste footprint annually to track
progress on our waste reduction and recycling goals.
Working with WWF, we established our food-waste
measurement methodology using the World Resources
Institute’s (WRI) Food Loss & Waste Protocol.
In 2023, the amount of food waste generated in
our stores increased by 8%, from 245,289 tons to
265,773 tons. Multiple factors contribute to food waste
in our stores, from how we order products to how
we prepare food for our customers. We can reduce
the amount of food waste we produce by right-
sizing the product assortment, optimizing inventory
management, improving dynamic markdown solutions
and continuously expanding items eligible for donation.
The increase in food waste generated last year
is partly due to changes in our retail cut-fruit
program, which moved from third-party processing
to in-store production to better meet our
customers’ expectations.
We improved the amount of in-store food waste
diverted from landfills from 46% to 52% last year,
largely due to the expanding recycling and de-
packaging programs. By diverting 137,275 tons of
retail food waste from landfills in 2023, we avoided an
estimated 145,993 tons of CO
2
e emissions.
Ultimately, our goal is to reduce the amount of food
waste we generate and to recycle as much of the
remaining waste as possible. Our long-term trends
remain positive. Since 2017, we have decreased the
amount of food waste generated in our stores by 20%
and improved our diversion rate from 27% to 52%.
Kroger is a member of WRI’s 10x20x30 initiative, the
Pacific Coast Food Waste Commitment and the U.S.
Food Waste Pact. These engagements provide pre-
competitive forums where members can share best
practices, collaborate cross-functionally across the
value chain and gain insight from industry experts
to support our collective goals.
Destination
3
Food
Inedible Parts
Total
Animal feed
29,273
7,949
37,222
Anaerobic digestion
59,187
–
59,187
Composting
28,456
–
28,456
Biodiesel production
–
12,410
12,410
Landfill
4
128,498
128,498
Total
245,414
20,359
265,773
Food Waste Management Data
2023 Performance—short tons
Progress on Food Waste Goals
1, 2
Tons waste generated
2020 Progress
2021 Progress
2019 Progress
2017 Baseline
2018 Progress
2025 Target
Landfilled Diverted
44.7%
55.3%
288,966
72.9%
27.1%
332,212
60.3%
39.7%
301,282
95%
166,106
51.7%
48.3%
268,248
51.2%
48.8%
269,382
2022 Progress
2023 Progress
54.1%
48.3%
5
%
45.9%
51.7%
245,289
265,773
1.
Data reflects calendar year
2.
Harris Teeter data is included in landfill and food diversion data but is not included in inedible parts diversion data due to insufficient data
3.
Food waste diversion data reflects data collected from stores on composting, animal feed, AD, fat/bone and used cooking oil recycling programs
4.
The landfill metric shared here is estimated using data captured and synthesized from annual waste audits conducted in a subset of our stores
People
Our Approach
Introduction
2024 Kroger ESG Report
44
Appendix
Governance
Planet
Packaging
Sustainability
Product packaging is designed with multiple
purposes in mind, from protecting food safety,
quality and freshness to communicating important
product information to customers. While balancing
these important priorities, Kroger aims to improve
the sustainability of our packaging over time by
reducing volume, using more recycled materials
and increasing recyclability.
Progress to Date
Each year, we continue to refine the
Our Brand
s
packaging dataset to reflect changes in the product
assortment, capture any recent packaging changes
and replace estimated data points with updated
supplier-provided information.
1
For 2023, our dataset includes 67% (measured by
weight) actual data. We expect that our dataset
will continue to improve over time, particularly
as we prepare to comply with future legislated
reporting requirements. We are working to improve
the processes for capturing packaging data as
we continually change the
Our Brand
s product
portfolio and update information regarding
packaging recyclability.
In 2023, we achieved the following progress:
•
52% of
Our Brands
packaging currently meets
goal definitions for recyclability, reusability or
compostability.
We measure this by assigning a
recyclability score to each packaging component
and calculating the weighted total that reflects
component weight and product sales during the
reporting year. The quality of our data continues
to improve as we expand processes for capturing
and reviewing more detailed packaging data. This,
combined with a dynamic product assortment,
improved our recyclability findings in 2023.
•
The in-scope
Our Brands
product portfolio
contains 10% PCR today.
To be conservative, we
only use PCR content reported by suppliers, not
any of our proxy data, in the numerator of this
calculation. We are focused on adding PCR across
our packaging portfolio, particularly in the
Our
Brands
products that we manufacture.
Packaging Recyclability
Kroger’s framework for defining recyclability reflects
best practice definitions and requirements of the Ellen
MacArthur Foundation and the How2Recycle program.
In this framework, we included the top two levels in
our definition of recyclable for
Our Brand
s packaging.
We aim for packaging to be widely collected for
recycling or optimally recycled in practice and at scale.
As new packaging legislation defines recyclability
in key states and we finalize design guidelines for
“recycle readiness,” we may revisit our calculations to
ensure consistency across reporting systems.
We have been developing our packaging recyclability
roadmap to identify which changes to what product
types will require more or less intervention and
on what timelines. Some products already have
packaging that is generally “recycle ready” and
may need some minor optimization. However, other
packaging types lack established recycling systems
in the U.S. and require significant innovation, process
validation and testing to identify alternatives.
We are also creating resources for our internal
teams—packaging engineers, sourcing experts and
Our Brand
s product managers—to guide the review
and improvement of packaging to meet accepted
guidelines for “recycle readiness.”
While reviewing our products for packaging
improvements, we are also contributing to the
development of better processing and end-market
opportunities for recycling. Through funding from
the Zero Hunger | Zero Waste Foundation, we are
a Recycling Coalition Supporter of The Recycling
Partnership. The foundation continues to support
the multi-stakeholder Polypropylene (PP) Recycling
Coalition and the PET Recycling Coalition to improve
community-level infrastructure for curbside PP
collection and recycling and improve recycling
outcomes for polyethylene terephthalate (PET)
thermoform packaging.
Several years ago, Kroger established our Sustainable
Packaging Goals that inform our approach to
packaging design across the
Our Brands
portfolio.
Our work includes:
•
Completing a baseline product packaging footprint
to fully understand current packaging impacts
•
Seeking to achieve 100% recyclable, compostable
and/or reusable
Our Brands
packaging
•
Increasing recycled content in packaging so that the
portfolio of packaging collectively contains at least
10% post-consumer recycled (PCR) content
•
Increasing awareness among Kroger customers
about how to manage
Our Brands
product
packaging at end of life
•
Reducing unnecessary packaging
1.
Our dataset primarily includes food products, both grocery and fresh, as well
as health, beauty, household supplies and cleaning, while excluding general
merchandise products (apparel and home goods), Home Chef, Vitacost and
national brand products
People
Our Approach
Introduction
2024 Kroger ESG Report
45
Appendix
Governance
Planet
Recycled Content Materials
Our packaging engineers, Sourcing and
Our
Brand
s teams are focused on how they can
increase post-consumer recycled content in our
product packaging. With Kroger’s goal to increase
recycled content, as well as expanding legislative
requirements to achieve higher percentages
Recyclability
Level
Brief
Description
Example
Packaging Types
% of Kroger
Packaging
1
Recycled in practice
and at scale
The component is recyclable and either remaining
components are compatible with the recycling
process or non-recyclable components can be
separated. The packaging type must achieve a 30%
post-consumer recycling rate in multiple regions.
Glass beverage
containers;
cardboard,
paperboard;
aluminum beverage
cans, pans, trays
14%
Widely collected
for recycling
A majority percentage of the population (at least
60%) has access to a recycling collection system that
accepts the packaging (curbside or special take-back
schemes). There are occasions when packaging is
collected through a recycling system but not recycled.
Plastic bottles,
jugs, jars (PET,
2
HDPE,
3
LDPE
4
); PP
5
cups; aluminum
food cans; glass
containers
38%
Sometimes collected
for recycling
A significant percentage (20%–59%) of the population
has access to a curbside recycling collection system
that accepts the packaging. There are occasions when
packaging is collected through a recycling system but
not recycled.
PET clamshells,
tubs, trays; LDPE
containers;
aluminum trays,
aerosol containers
1%
Recycle ready
Packaging is designed for collection, sorting and
recycling using end-of-life processes, but collection,
sorting and recycling infrastructure is not yet
widely available.
Monolayer PE
6
plastic film
2%
Not recyclable
Packaging is unable to be sorted, reprocessed and
provide value for end markets without significant
challenges. Though it might be technically possible to
recycle a packaging item, there are systemic barriers
to the collection, sorting and recycling in practice, at
scale and with reasonable economics.
Multilayer plastic
film; problematic
materials (e.g., PS,
7
PVC,
8
PFAS
9
)
45%
Packaging Recyclability Definitions and Progress
1.
Totals may not sum due to rounding
2.
PET: Polyethylene terephthalate
3.
HDPE: High-density polyethylene
4.
LDPE: Low-density polyethylene
5.
PP: Polypropylene
6.
PE: Polyethylene
7.
PS: Polystyrene
8.
PVC: Polyvinyl chloride
9.
PFAS: Per- and polyfluoroalkyl substances
in certain product categories, we continue to
monitor and review the feasibility of using PCR
for different product categories. Factors like high
demand, increasing costs and process changes
to accommodate PCR materials can make
this challenging.
People
Our Approach
Introduction
2024 Kroger ESG Report
46
Appendix
Governance
Planet
Convenient Recycling Opportunities
Our in-store plastic film collection and recycling
program accepts monolayer plastic films that are not
currently accepted in curbside recycling programs.
This includes non-food items like plastic grocery bags;
plastic overwrap on household tissues, diapers and
bottled water; dry cleaning bags; retail produce bags;
and packaging that is labeled as acceptable for in-
store drop-off programs.
Since 2021, Kroger has also partnered with TerraCycle
to create the Kroger
Our Brand
s Free Recycling
Program—the first program of its kind for a U.S.
retailer. Participating Kroger customers can mail in
the flexible plastic packaging from their favorite
Our
Brand
s products for free recycling. The collected
plastic packaging is converted to playgrounds in local
communities. Participants earn TerraCycle points
for every pound of waste they send in for recycling,
which can be redeemed as a donation to a charity of
their choice. To date, our customers have returned
more than 2.2 million pieces of
Our Brand
s flexible
packaging—the equivalent of 48,000 pounds of
plastic—making us one of the leading TerraCycle
partners in North America.
We are also a member of the How2Recycle program
and have placed the relevant logo on several items
to date. Our goal is to provide helpful and accurate
recycling communications on
Our Brand
s packaging.
Packaging Legislation
Like many other brands, Kroger’s
Our Brand
s
products are subject to a number of different
packaging legislation requirements in the states
in which we operate, such as extended producer
responsibility (EPR), material restrictions, minimum
requirements for PCR and limits for on-package
claims about recycling.
Our multi-functional team of subject matter
experts continues to monitor these requirements
to ensure we are prepared to calculate and report
to the relevant entities, and to accommodate any
packaging changes that are required into our
packaging roadmap.
Reducing Single-Use Plastics
We remain focused on finding feasible ways to
reduce the amount of single-use plastic grocery
shopping bags used in our stores.
During the past two years, our Retail Operations
team has conducted multiple pilots in select stores
to test bag alternatives and incentives to encourage
customers to move away from single-use plastic
bags. These tests have provided valuable insights and
wide-ranging customer feedback that is affecting our
pace of change and potential roadmap for phasing
out single-use bags.
So far, more than 700 Kroger-operated stores have
stopped providing single-use plastic shopping
bags and offer only paper or multi-use plastic bags
as alternatives. Differences in state and local bag
requirements, bag bans, or bans on bag bans further
complicate this work to find scalable solutions to
reduce single-use plastic bags. We continue to
explore how to achieve progress on this challenging
topic across the company and in collaboration
with others.
Kroger is a partner in the Consortium to Reinvent
the Retail Bag, an industry collaboration to reduce
single-use bag waste, managed by Closed Loop
Partners’ Center for the Circular Economy. In 2023,
the Consortium launched its largest in-market
reusable bag tests to assess whether consistent signs,
marketing and prompts can help customers build the
habit of bringing their bags whenever they shop.
As Grocery Sector Lead of the Consortium, Kroger
was among the leading national brands that
participated in the test. Conducted in two of our
markets, Denver and Tucson, the test provided Kroger-
specific insights on how to encourage more customers
to use their reusable bags.
As always, we invite our customers to return their
dry, clean single-use plastic shopping bags and other
plastic films such as dry cleaning and bread bags,
overwrap packaging for diapers, water bottles and
more through our in-store recycling programs.
People
Our Approach
Introduction
2024 Kroger ESG Report
47
Appendix
Governance
Planet
Kroger relies on natural resources to operate our business and bring a wide
range of products from around the world to our customers. Our goals to protect
biodiversity, improve agricultural practices and conserve water reflect our ambition
to work with suppliers to ensure these resources are available far into the future.
Biodiversity & Resource Conservation
New nature-
based goal
to protect pollinators
35
fishery improvement projects
supported in 2023
5K+
natural and organic
items in the average
Kroger-operated store
Our Approach
Kroger’s Zero Hunger | Zero Waste impact plan and
other public goals—including emissions reduction,
no-deforestation, seafood sustainability, pollinator
protection and dairy stewardship goals—support a
wide range of positive changes in our supply chain.
Leaders in Merchandising, Sourcing and Corporate
Affairs work together to manage key product
categories that may pose higher risk and where we
identify opportunities for change. Kroger’s executive
leadership team and Public Responsibilities
Committee of the board provide additional direction
and oversight.
Kroger continues to monitor emerging nature-
based frameworks for sustainability, including
those designed for target-setting and disclosure, so
we can evaluate the potential impact to Kroger of
new guidelines and expectations on this complex
topic. We also engage our suppliers for insights and
feedback when setting expectations in key categories.
As a next step, Kroger plans to complete an initial
biodiversity risk assessment and metrics pilot to
begin evaluating how to expand our work to
advance conservation and protect biodiversity in
our supply chain.
Supply Chain
Sustainability
As a leading manufacturer, retailer and distributor
of food products and other essentials, we know how
important it is to maintain healthy natural ecosystems
that sustain our supply chain and support our global
food system.
Agricultural Practices
Encouraging our suppliers to adopt more sustainable
agricultural practices is an important part of our
approach. We believe collaboration with our suppliers
and the broader value chain will be critical for
achieving meaningful systems change.
As a dairy processor, Kroger is a signatory of the
U.S. Dairy Stewardship Commitment, which seeks
to monitor and reduce the environmental impacts
of the dairy industry. We are also members of Field
to Market: The Alliance for Sustainable Agriculture,
which develops science-driven and outcomes-based
programs and tools for industry collaboration.
Material Topics
BIODIVERSITY & CONSERVATION
AGRICULTURAL PRACTICES
WATER
Integrated Pest Management (IPM) Practices
In early 2024, we shared Kroger’s new Goal to Protect
Pollinators & Biodiversity, which requires fresh produce
suppliers to implement Integrated Pest Management
(IPM) practices for all products supplied to Kroger. We
expect medium- to large-sized suppliers to meet this
requirement by the end of 2028, with smaller suppliers
to follow by 2030.
We worked with Sustainable Food Group, a branch of
the IPM Institute of North America, to develop this goal.
We surveyed a sample of suppliers—representing about
40% of Kroger’s fresh produce spend—on topics like
pest management, soil health, biodiversity and water
conservation. From this survey, we also learned that
suppliers would appreciate efforts to streamline produce
growing requirements across retailers and other food
buyers, if it could be done in a pre-competitive manner.
To continue expanding our focus on sustainable
agriculture, biodiversity and conservation, we plan to:
•
Conduct a biodiversity risk assessment for our supply
chain to understand potential biodiversity impacts
beyond fresh produce
•
Prepare for future biodiversity reporting by piloting
biodiversity metrics with row crop and specialty
crop suppliers
•
Conduct a climate risk assessment for select
commodities in our supply chain
$2.4M
contributed to
Community Development
Funds from Kroger’s
Fair Trade Certified™
purchases in 2023
People
Our Approach
Introduction
2024 Kroger ESG Report
48
Appendix
Governance
Planet
Commodity
Goal(s)
2023 Progress Update
Palm oil
• Maintain our existing goal, set in 2015, to source
palm oil, palm kernel oil and palm oil derivatives
in Our Brands products from sources certified to
the Roundtable on Sustainable Palm Oil (RSPO)
supply chain standard, or equivalent, with a
preference for sourcing physical palm oil certified
to an RSPO Mass Balance standard or higher
• 98% of palm oil-based ingredients, by volume,
was certified
• 94% was certified to the Mass Balance supply chain
standard or higher
Beef
1
• Source beef in our fresh meat case and beef-
based ingredients used in our manufacturing
plants from sources that are deforestation-free
by 2025
• Achieve the same goal for all
Our Brands
products by 2030
• 97% of beef-based ingredients in our fresh meat
case and manufacturing plants, by volume, was
harvested in regions with low- or no-deforestation
risk. In addition, 94% was from cattle born, raised and
harvested in low- or no-deforestation risk regions
2
• 50% of beef-based ingredients in Kroger third-party
manufactured
Our Brands
products was from low-
or no-deforestation risk regions, and 49% was from
potentially high-risk regions. Suppliers of products
with the remaining 1% of ingredients could not
provide visibility to the country of origin
Soy
1
• Source soy-based ingredients used in our
manufacturing plants from sources that are
deforestation-free by 2025
• Achieve the same goal for all
Our Brands
products by 2030
• 99% of soy-based ingredients sourced into our
plants, by volume, was from low- or no-deforestation
risk regions
• 93% of soy-based ingredients in Kroger third-party
manufactured
Our Brands
products was from low-
or no-deforestation risk regions and 2% was from
potentially high-risk regions. Suppliers of products
with the remaining 5% of ingredients could not
provide visibility to the country of origin
Paper
• Source virgin fiber used in product packaging in
our manufacturing plants certified to the FSC,
3
SFI
4
and/or PEFC
5
standards, with preference for
the FSC standard, by 2025
• Achieve the same goal for all Our Brands
products, including paper product packaging
and household paper products
• 99% of paper, by volume, in manufacturing plants was
certified and/or contained recycled content
• 94% of household paper was certified and/or
contained recycled content
• 45% of
Our Brands
paper-based packaging was
certified and/or contained recycled content
No-Deforestation Goal Progress
1.
We use the geographic deforestation risk in the CDP Forests questionnaire guidance to
determine if the beef and soy ingredients in our beef counter, plants and Kroger labeled
products are at risk for deforestation. CDP uses the definition of “tree cover loss”
2. As reported by our suppliers, to the best of their knowledge
Organic Growing Practices
We offer our customers a wide assortment of
organic products spanning our fresh and grocery
departments. Organic agricultural practices can help
reduce environmental impacts to pollinators and the
ecosystems where products are grown. The average
Kroger store contains more than 5,000 natural and
organic products, with all stores carrying some
assortment. Several of Kroger’s manufacturing plants
produce certified Organic products, as do our third-
party and national brand vendors.
No-Deforestation Goal
To address the risk of tropical deforestation in our
supply chain, we have developed Kroger’s
No-Deforestation Commitment:
Our Brand
s which
aims to minimize deforestation in key at-risk
commodities, including palm oil, beef, soy and paper.
We query our suppliers annually to assess alignment
with our goal.
For products that contain palm oil or paper, we require
our suppliers to align with well-established certification
frameworks to demonstrate the management of
deforestation-related impacts. Because beef and soy
commodities lack widely-established certification
frameworks, we use a geographic risk-based approach.
We also ask our suppliers for information about their no-
deforestation practices.
Because our global supply chain is highly complex,
we don’t always have full visibility into the land-based
impacts of the products we source. Increased supply
chain visibility is important for achieving our goals,
and we believe that by requesting deforestation-
related information from our suppliers on a regular
basis, we can contribute to building a culture of
transparency and accountability in key commodities
where there are deforestation risks.
We provide an overview of commodity-specific progress
in the adjacent table.
3. Forest Stewardship Council
4. Sustainable Forestry Initiative
5. Programme for the Endorsement of Forest Certification
People
Our Approach
Introduction
2024 Kroger ESG Report
49
Appendix
Governance
Planet
Fair Trade Certified™ Products
We offer nearly 200 Fair Trade Certified
Our Brand
s
products spanning a variety of commodity categories.
In 2023, we sourced 28.9 million pounds of certified
ingredients. The Fair Trade Certified label is backed
by more than 120 social, environmental and economic
protections, with benefits for both the people making
our products and our planet.
Fair Trade standards and guidelines foster sustainable
production practices that preserve the environment,
enhance resilience to climate change, and support
the health and quality of life of producers and
their communities.
A portion of every Fair Trade purchase goes to
Community Development Funds for initiatives
identified by workers and their communities
to meet their most pressing needs. This means
communities can make critical investments to
improve infrastructure and provide basic resources
like education, sanitation and clean drinking water.
Kroger’s total Fair Trade Certified purchases
contributed $2.4 million in Community Development
Funds in 2023.
Kroger is a member of the Sustainable Coffee
Challenge. Our Simple Truth® brand aims to source
100% Fair Trade Certified coffee in all products (97%
alignment in 2023), and our Private Selection® brand
has a goal to source 100% Fair Trade Certified coffee
from international growing regions (100% alignment
in 2023).
Fair Trade Certified Ingredients Used
Pounds
2021
2022
16.9M
20.4M
2023
28.9M
Seafood Sustainability
Kroger has a long-standing focus on improving
seafood sustainability in collaboration with WWF.
Together, we monitor progress in sourcing regions
and contribute to industry efforts to improve fishery
practices and protect aquatic ecosystems.
Our Seafood Sustainability Policy articulates our
commitments and supplier expectations. In 2023,
Kroger continued to advance progress on our
seafood sustainability goals. We exceeded our goal
to source 95% of wild-caught seafood in our Seafood
department from fisheries aligned with our policy, and
we achieved 98% alignment with our goal to source
100% of farm-raised seafood from farms aligned with
our policy.
We rely on certifications to verify that facilities,
fisheries and farms in our supply chain are operating
responsibly and sustainably. These entities
occasionally lose their certifications, which may affect
performance on our goals until the source fishery or
aquaculture farm improves or we can move to a more
sustainable or certified source. As a result, we aim to
maintain at least 95% alignment with the wild-caught
and farm-raised certifications in our seafood policy
moving forward.
We continued supporting fishery improvement
projects (FIPs) in 2023 to help fisheries achieve Marine
Stewardship Council (MSC) certification. This year,
Kroger’s Seafood department assortment included
wild-caught seafood from 35 comprehensive FIPs.
In 2023, 98.7% of our shelf-stable tuna, by volume,
was from suppliers aligned with our requirement
that tuna suppliers
1
be in good standing with the
International Seafood Sustainability Foundation (ISSF).
Farm-Raised Seafood Meeting Kroger’s Seafood
Sustainability Policy
2021
98%
2022
2023
99%
98%
We also aim to source 20% of shelf-stable
Our Brand
s
tuna from MSC-certified fisheries by 2025. In 2023,
7.3% of relevant volume came from MSC-certified
sources. This is a decline from 2022 progress due
to adjustments in our fishery sources across tuna
products in our assortment. We are working to correct
this and achieve our goal by 2025.
Because traceability is key to ensuring products
are sourced responsibly, we will continue working
with WWF and our seafood suppliers to improve
transparency and traceability for seafood globally.
This is particularly important for Kroger as we seek to
meet the U.S. Food and Drug Administration’s (FDA)
traceability requirements for seafood under the Food
Safety Modernization Act (FSMA).
For more details, please see the WWF-Kroger Seafood
Sustainability Report.
Wild-Caught Seafood Meeting Kroger’s Seafood
Sustainability Policy
2021
94%
2022
2023
95%
96%
1.
Both
Our Brands
and national brands
People
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Introduction
2024 Kroger ESG Report
50
Appendix
Governance
Planet
Water
Safe, high-quality and abundant water is critical for
the health of our associates, customers, communities
and the planet. Across our facilities, we find ways
to reduce water use in day-to-day operations to
increase efficiency and protect natural resources.
Kroger’s periodic water risk assessments for our
facilities have assessed location-based water risk
across several impact areas, including physical
quantity, physical quality, and regulatory and
reputational risks. Some of our facilities are
in regions with a defined level of water stress;
collectively, these facilities account for less than
10% of our total facilities.
In recent years, Kroger has retrofitted our retail
stores to adopt a water efficiency plan that includes
multiple parts of the store, both inside and out.
As a result, we are seeing additional water savings
and efficiency with the help of approximately 200
adiabatic condensers (or coolers). These condensers
use water for cooling only when needed, with an
estimated annual saving of 1,000 kGal per site.
Several of our manufacturing plants use significant
amounts of water in their production processes. Over
time, our plant engineers have found ways to reduce
and reuse water in their operations. We use on-site
wastewater treatment at certain plants, including our
K.B. Specialty Foods plant in Greensburg, IN, where
AD technology converts by-products to renewable
biogas and electricity that is used to power the facility.
1.
Because water consumption is not metered in all stores, we use a detailed
estimation process to fill in missing data points, including using proxy data from
the previous year and per-square-feet intensity metrics. We also refine the portfolio
of sites included in our water inventory based on store closures, site openings and
updated information about locations
2.
Water data reflects calendar year results and all Kroger operations
Water Footprint
2
Billion gallons
2021
2022
6.75
5.69
2023
5.91
In 2023, company-wide water consumption
increased by 4%.
1
This is primarily due to ongoing
improvements in data quality as we move from
estimated to actual sources.
We continue to monitor and evaluate progress
over time on water use and management across
our operations.
Plant-Based Products
Kroger’s
Our Brand
s and national brand suppliers have
developed a large variety of plant-based products
as alternatives to traditional animal-based proteins
and ingredients. These items can reduce the carbon
emissions and other environmental impacts of animal-
based products and may also provide health benefits.
In 2023, Kroger offered about 175 plant-based
Our
Brand
s items, primarily in the Simple Truth® brand.
These products span 50 Kroger merchandising
categories, including deli, bakery, dairy, meat, snacks
and frozen. Total sales of
Our Brand
s plant-based items
decreased 10% between 2022 and 2023, primarily due
to shifting demands in customer preferences.
As with our entire assortment, we continue to adjust
our plant-based offerings to meet our customers’ needs
in this evolving space. Sales of the most popular plant-
based items remain strong, including alternative milks
and tofu.
In recent years, Kroger developed and promoted a
campaign to highlight plant-based items across the
store, featuring top national brands and Simple Truth®
items. This Power of Plant Based campaign used special
promotions to drive attention to and increase customer
engagement in these products.
As part of the outreach to encourage customers to try
plant-based items, many brands participated in a food
truck event in seven Kroger geographies, featuring
free samples and coupons for participating items. The
truck was also featured at the popular Kroger Wellness
Festival in Cincinnati in 2023 to bring attention to the
benefits of plant-based foods for people and our planet.
People
Our Approach
Introduction
2024 Kroger ESG Report
51
Appendix
Governance
Planet
Governance
We offer a wide range of affordable food and other
essentials to serve millions of loyal customers every day.
Our strong corporate governance enables us to operate
responsibly and continually improve how we manage a
complex global supply chain.
In This Section
53
Corporate Governance
60
Responsible Supply Chain
& Sourcing
Material Topics
• Corporate Governance
• Business Ethics & Compliance
• Food Safety
• Non-Food Product Safety
• Data Privacy & Cybersecurity
• Public Policy Practices
• Marketing Practices & Product Labeling
• Retail Security
• Responsible Supply Chain & Sourcing
• Human Rights
• Animal Welfare
People
Our Approach
Introduction
Planet
Appendix
2024 Kroger ESG Report
52
Governance
Kroger’s operations reach billions of people in communities near and far. We
engage leaders in our strategy and hold teams accountable for results. We are
making progress on our journey to integrate ownership for material topics within
and across our lines of business and functions. Our centralized structure, vertical
integration and focus on responsible sourcing also enable our forward progress.
Corporate Governance
Our Approach
Kroger has a history of strong corporate governance,
including oversight of material topics affecting
people and our planet. Our Law Department oversees
matters of corporate governance with oversight from
the Board of Directors. We manage key topics in
the context of our business priorities and strategies,
balancing the long-term interests of our associates,
customers, communities and other stakeholders.
We maintain an established topic management
approach, informed by a comprehensive, third party–
led materiality assessment. We completed our third
materiality assessment in 2023, aligning with the
principles of double materiality and best practices for
defining and prioritizing material topics.
The results and insights from our double materiality
assessment also inform our approach to engaging
our associates, customers, communities and other
stakeholders, and how we report progress on our goals.
We integrate topic management and goals into
our business and corporate governance practices,
including oversight of enterprise risk and
accountability among senior management and our
board. Five board committees have direct oversight of
ESG topics, as outlined in the table on the next page.
Details of our directors’ areas of expertise, as well as
committee composition, are available online in Kroger’s
2024 Proxy Statement and 2023 Annual Report.
Several Kroger departments support our work, including:
•
Audit:
Oversees financial reporting and manages
independent auditors
•
Corporate Affairs:
Leads internal and external
communications and media relations; manages
federal and state government affairs and advocacy;
leads sustainability and social impact
•
Corporate Food Technology:
Oversees food, health
and beauty care product safety and quality assurance;
manages recalls affecting Kroger-manufactured and
-labeled products and national brands; leads animal
welfare program
•
Ethics & Compliance:
Leads awareness and
implementation of corporate policies, including
Kroger’s Policy on Business Ethics, Anti-Corruption
Policy, Vendor Code of Conduct and Privacy
Policy; oversees compliance with relevant laws
and regulations, including environmental requirements
•
Human Resources & Labor Relations:
Leads human
capital management, including hiring, compensation
and benefits; leads diversity, equity and inclusion
initiatives; engages with labor unions to negotiate
collective bargaining agreements
•
Merchandising & Marketing:
Determines category
assortment and promotional strategies; leads
Our Brands
strategy and assortment; leads
supplier engagement together with Sourcing;
leads customer engagement, loyalty and rewards
•
Retail Operations:
Guides standards, policies and
program implementation for retail stores; advances
operational performance on topics like food access,
food waste and operational waste diversion
•
Sourcing:
Sources raw materials and finished
products for
Our Brand
s; purchases national
brand items for resale and goods not for resale;
implements Responsible Sourcing program; leads
supplier engagement with Merchandising
•
Supply Chain:
Manages our manufacturing
operations, distribution network and
transportation fleet
•
Technology & Digital:
Focuses on governance,
innovation and digital channels; manages
approach to cybersecurity
Material Topics
CORPORATE GOVERNANCE
BUSINESS ETHICS & COMPLIANCE
FOOD SAFETY
NON-FOOD PRODUCT SAFETY
DATA PRIVACY & CYBERSECURITY
PUBLIC POLICY PRACTICES
MARKETING PRACTICES & PRODUCT LABELING
RETAIL SECURITY
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
53
Appendix
Governance
Business Ethics & Compliance
We strive to uphold the highest ethical standards
and help our associates, suppliers and vendors do
the same. We consistently review company policies
and update them as needed to advance ethical and
responsible practices.
Our Ethics & Compliance team is responsible for
driving internal implementation of Kroger’s Policy on
Business Ethics and related policies and monitoring
our company helpline, through which associates can
anonymously report concerns. Together with our
Corporate Affairs and Sourcing teams, the Ethics &
Compliance team monitors legislative and regulatory
changes, shares updates and develops compliance
programs as needed.
Regulatory Compliance
Kroger is committed to product safety and
quality. Our suppliers must comply with regulatory
requirements pertaining to product safety and meet
or exceed Kroger’s quality, safety and performance
requirements. A dedicated group maintains a General
Merchandise Regulatory Compliance and Quality
Assurance Program, which outlines product-testing
requirements for
Our Brand
s general merchandise.
To enhance responsible disposal of select products,
our Environmental Compliance team implements
processes for retail store disposal of unsalable
hazardous products and store-use chemicals that are
beyond their useful life. Additionally, working with UL
WERCSmart, a platform that facilitates the exchange
of information about products, we provide accurate
disposal information directly to stores and distribution
centers. We use licensed hazardous waste vendors to
remove materials from our sites and properly manage
disposal, reuse, recycling or destruction.
Oversight of ESG Topics
B
oard of Directors: Committee Ove
rsight
E
xe
cutive Leadership Team
Cross-Functional Topic Management
Audit
Committee
Legal & Regulatory
Ethics
Operational & Third-Party
Compliance
Data Privacy & Cybersecurity
Financial Integrity
Compensation & Talent
Development Committee
Human Capital Management
Talent Development
Executive Compensation
Diversity, Equity & Inclusion
Corporate Governance
Committee
Board Recruitment/Diversity
Board Succession
Shareholder Engagement
Program
Shareholder Advisory Votes &
Shareholder Proposals
Independent Director
Compensation
Finance
Committee
Capital spending to
ensure consistency with ESG
strategy & goals
Public Responsibilities
Committee
Sustainability
Social Impact
Safety
Responsible Sourcing
Advocacy & Public Policy
Communications & Brand
Stewardship
Stakeholder Relations
Food Access
Data Governance
Committee
Climate Impact
DEI Advisory
Council
Packaging
Enterprise Risk
Management
Waste & Circularity
ESG
Team
Responsible Sourcing
Ethics &
Compliance
People
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Introduction
Planet
2024 Kroger ESG Report
54
Appendix
Governance
Chemical Management
We remain focused on product quality and safety,
setting high standards for all
Our Brand
s products. Our
regulatory compliance and quality assurance programs
define product and supplier requirements, such as
quality specifications, testing protocols, and reporting
and labeling to ensure safe, high-quality products.
As reflected in our Safer Chemicals Statement,
we proactively identify chemicals to remove
from
Our Brands
products. Examples of recent
progress include:
•
100% of
Our Brand
s canned food items remain
free of bisphenol A (BPA) liners
•
Currently, about 93% of
Our Brand
s canned
beverage items (by volume) are no longer in BPA
liners. We will continue to expand this reach as
supply becomes available
•
Our Apparel Restricted Substances Policy, which
includes a robust Restricted Substances List (RSL),
establishes requirements about chemicals that are
not permitted in
Our Brand
s apparel products
•
Kroger is finalizing a restricted substance monitoring
list with input from a third-party expert for
formulated products sold in our stores
Food & Product Safety
Providing safe, quality food and products for our
customers and their families is Kroger’s highest
priority. Kroger’s Corporate Food Technology (CFT)
team oversees food safety, quality assurance and
regulatory compliance for our business. For suppliers
and others, these are also conditions of doing
business with us. We strive to meet and exceed high
expectations for food safety, quality and freshness
across our company.
Kroger’s vice president of CFT and Regulatory Compliance
leads a team of scientists and technologists who oversee
food and product safety and quality assurance for our
retail stores, food processing facilities, warehouses and
dedicated fulfillment centers. They monitor food integrity
and purity, product size and specifications, and changes
in legislation and regulations. The CFT team improves
processes based on the latest best practices and guidance
on allergens. Kroger’s executive leadership team and
Public Responsibilities Committee of the board oversee
food safety performance.
We follow a risk-based approach to managing food
safety. We focus on preventing foodborne illness
through a culture of continuous improvement and
accountability. We train associates on food safety
policies and process controls, conduct facility food
safety audits, monitor performance, and conduct
efficient product recalls and customer notifications.
Kroger is actively preparing to meet the compliance
deadline of January 2026 for the FDA’s Food Traceability
Rule, which implements Section 204 of the Food Safety
Modernization Act (FSMA). We support efforts to enable
faster identification of recalled items to remove them
from sale most efficiently. We also aim for continued
improvements in data collection and traceability as foods
move through our value chain.
Kroger is an active member of The Consumer Goods
Forum and its Coalition of Action on Food Safety:
the Global Food Safety Initiative (GFSI). Through
GFSI, we are part of a community of 45 retailers and
manufacturers that oversees food safety standards for
businesses and collaborates to improve best practices.
Practices & Process Controls
The CFT team conducts frequent product testing
to continually improve customer satisfaction. The
team tests Kroger manufactured items for safety and
quality; conducts food safety audits at all facilities;
reviews third-party audits of suppliers’ facilities for
compliance; works with regulatory agencies and
suppliers to manage recalls affecting
Our Brand
s and
national brand products; and advises the Corporate
Affairs team on recall communications, policy
development and advocacy.
Every year, the CFT team updates cleaning protocols
and master sanitation and cleaning schedules at all
facilities, reflecting best practices. We have strict
governance in place to ensure our own facilities
and suppliers adhere to food safety requirements
and process controls, including critical cold chain
management guidelines. The team monitors Kroger’s
operational performance on food safety training, audits
and inspections.
Grocery Stores
Across our stores, food safety managers help ensure
compliance with federal, state and local regulations
through our risk prevention strategy, which focuses on:
•
Associate training
•
Food safety process controls
•
Store sanitation
•
Audits and food safety reviews
Food safety managers also participate in food safety
organizations and industry groups to stay informed of
new developments and share best practices. Kroger
continues to train managers and associates working
in store Fresh departments in food safety practices.
In 2023, nearly 3,000 store management and Fresh
department associates were trained and nationally
certified as Food Managers. In 2024, we are adding
food safety training modules and daily reminders to
Kroger’s new Fresh Start associate training platform
to further emphasize food safety best practices.
Kroger completed nearly 14,400 in-store food safety
audits in 2023.
Manufacturing Facilities
All Kroger-operated food manufacturing facilities are
certified to Safe Quality Food Institute standards, and
every plant has an assigned Quality Assurance Manager
and a Safe Quality Food Practitioner. We manufacture
approximately 30% of total
Our Brand
s units and 43% of
the grocery category at food processing plants across
the country, using quality control plans (QCPs) from the
ingredient level all the way to the finished product. The
plans are adjusted according to various inputs, including
customer comments.
Our manufacturing food safety risk mitigation
strategy includes:
•
Leadership and training
•
Hazard analysis and risk-based preventive controls
•
Sanitation control
•
Food allergen control
•
Environmental monitoring programs
•
Audits and food safety reviews
•
Recall management
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
55
Appendix
Governance
Supply Chain
Kroger seeks to have all distribution and fulfillment
centers that store food achieve GFSI standards for
warehouse and distribution facilities by 2025. To
support this transition, a new Corporate Supply
Chain Food Safety Manager oversees all food safety
and regulatory programs in these facilities. In 2023,
we conducted preliminary external audits for
38 warehouses that store and distribute food.
Distribution Centers
Management responsibilities are outlined in our
food safety and sanitation standards, and associates
implement formal documented programs, including
site-specific Food Safety Plans. Kroger’s distribution
centers follow established cold chain management
standards to help ensure temperature-sensitive
products are managed properly in transit and storage.
This is of particular importance during inbound and
outbound transportation.
Key elements of these standards include:
•
Food safety responsibility and documented practices
•
Proper receipt and storage of materials
•
Cleaning practices
•
Maintenance for food safety
•
Pest prevention to avoid food adulteration
Fulfillment Centers
Our fleet of refrigerated Kroger Delivery trucks, which
can store up to 20 orders, are designed to keep food
safe and fresh for customers while being delivered
to their doorstep. In addition to our warehouse food
safety standards, we implement additional process
controls to manage ambient, chilled and frozen
products at our dedicated Kroger Delivery fulfillment
centers. Powerful machine learning algorithms
optimize delivery routes, considering factors such as
road conditions and optimal fuel use to deliver food
safely and efficiently.
Allergens
Kroger carefully manages federal requirements for
food safety regarding allergens. Known allergens
required on labels include peanuts, tree nuts, dairy,
egg, wheat, fish, crustacean shellfish, soy and sesame.
In 2023, food manufacturers were required to include
sesame as an allergen on all labels to align with the
U.S. Food Allergy Safety, Treatment, Education and
Research Act. Kroger modified all labels for
Our
Brand
s and made-in-store products containing sesame
and those that may come into contact with sesame
during production. In addition, Kroger-operated
manufacturing plants amended allergen control
programs to account for sesame.
Non-Food Product Safety & Quality
Our Brand
s non-food products adhere to a
multifaceted program to help ensure quality. We
work with carefully selected suppliers that have been
vetted and that adhere to compliance requirements
as outlined in our centralized Supplier Hub, including
third-party Good Manufacturing Practice (GMP)
certifications.
All products undergo evaluation and standard setting
during the development process. Product quality
is designed into the process from the start through
preliminary analytical testing, technical document review,
product specification concurrence between Kroger
and the supplier, and a first production review prior to
release. After introducing the product to market, we
continue to monitor and maintain quality. New products
are tested by a third-party laboratory after six months
in market, and we use a risk-based approach to conduct
third-party testing for mature products.
Kroger monitors and documents all customer feedback,
which is also reviewed and addressed by our technical
team and the supplier for continual improvement.
Kroger’s CFT and Regulatory Compliance teams also
monitor regulatory activity over time related to product
safety and ingredients to help ensure continued product
safety and compliance. Information about product
regulatory compliance is available in the Business Ethics
& Compliance section.
Recall Management
Products are removed from sale for many reasons,
including incorrect package labels, undeclared
allergens and, on rare occasions, the risk of illness or
injury. Because our customers’ safety is our highest
priority, Kroger is a leader in recall management and
communications. We consistently meet and exceed
industry and government standards for recalls and
product withdrawals.
Our experienced team of experts coordinate recalls
with suppliers, regulatory agencies and our own
network of food safety specialists and recall managers.
This 24-hour-a-day, seven-day-a week process focuses
on identifying items to be recalled or withdrawn from
our distribution network and retail stores and working
with appropriate teams to ensure the recalled items are
quickly removed from sale. We also investigate the issue,
take corrective action and modify or create programs to
minimize or eliminate similar issues in the future.
Kroger was one of the first retailers to implement
a personalized customer notification system for
certain types of recalls. Using our customer loyalty
database, we can identify shoppers who may have
purchased a specific recalled item. If a recall involves a
possible health risk—such as an undeclared allergen or
potential foodborne illness—we immediately activate
our notification systems to alert customers quickly
through register receipt messages and automated
phone calls. Kroger also offers a toll-free Customer
Service Center and information line staffed with
professionals who can answer questions about food
safety and items that may have been recalled.
In 2023, the Kroger team managed a total of 72 recall
events. Of these, 40 were Class I product recalls,
including 36 related to food products. None of these
Class I recalls involved
Our Brand
s items produced in a
Kroger-operated manufacturing facility. As in previous
years, recalls for undeclared allergens continue to be a
primary cause of Class I food recalls.
Enabling Faster Recalls
We continue to explore new ways to improve our recall
management systems. The Kroger Technology & Digital
team is working with CFT and other departments to
develop systems to enable product and data mapping
at every step of an item’s journey through the supply
chain. This will enable future compliance with the FSMA
Food Traceability Rule.
Kroger has completed initial systems design work for
data mapping and begun building the system. We
are prioritizing products specified as high risk on the
FDA’s Food Traceability List; ultimately, we plan to
extend these capabilities to all food and non‑food items
sold across retail stores and e-commerce channels.
In addition to enabling faster recalls, this critical work
will connect to other supplier management tools and
improve supply chain accountability and compliance
with relevant sourcing policies.
Number of Class I recall events involving
Kroger-manufactured Our Brands items
2021
2022
0
0
2023
0
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
56
Appendix
Governance
Privacy & Cybersecurity
Kroger recognizes the responsibility to protect
our customers’ information, our own data and our
business systems. We prioritize and invest in strong
data privacy and cybersecurity practices and strive to
manage information in a way that is transparent, fair
and trustworthy.
The chief ethics and compliance officer and a dedicated
privacy officer lead Kroger’s Privacy Office, reporting
to an executive-level Privacy Steering Committee. The
chief information security officer and Cybersecurity
team are responsible for cybersecurity, with board-level
oversight from the Audit Committee.
Privacy
Kroger’s Privacy Office oversees the company’s
efforts to analyze new privacy laws, identify potential
impacts and adjust business practices, processes
and communications relating to our associates’ and
customers’ privacy. Three foundational pillars guide our
privacy practices:
•
Embedding responsibility and accountability for
protecting personal information across our lines of
business and functions
•
Aligning with and meeting regulatory requirements to
serve our associates and customers
•
Increasing transparency in our policies and practices
to clearly explain how and why we collect and
process information
To build on those foundational pillars, we conduct a
biannual review of our Privacy Policy to make sure it is
clear, easy to understand, and accurately reflects our data
practices, including what privacy rights are available to
individuals, and how we collect, use and share data.
The technology and privacy landscapes continue to
change at an aggressive pace. Currently, 20 states have
comprehensive privacy laws approved, and several states
have passed consumer health privacy laws. Kroger’s
Privacy Office, Law Department and Corporate Affairs
team monitor policy developments at federal and state
levels to inform internal policies and processes that meet
or exceed compliance standards.
Focus areas in the last year included implementing all
the changes to effectuate the new state privacy laws and
consumer health laws; enhancing our Privacy Impact
Assessment process to add considerations for new
technologies, new state requirements and changes to
support scalability; increasing the reach of compliance
processes and cross-team collaboration to consider
potential privacy impacts when designing new business
processes or solutions; as well as participating in various
governance processes for data practices such as sharing
and responsible use of artificial intelligence (AI).
To further advance our privacy efforts, all corporate,
technology and retail store associates in affected
states who handle personal information complete
general privacy awareness training on an annual
basis. Associates working in certain areas of the
business, such as Kroger Health, are required to
complete additional privacy training to improve
awareness and compliance when managing personal
health information.
For more information, please see Kroger’s customer-
facing Privacy Center, a portal embedded in our
websites where consumers can find everything they
need to know about our privacy practices in one
convenient location. The Privacy Center includes
various privacy policies and notices, terms and
conditions, frequently asked questions, and links to
change marketing and communication preferences,
make a privacy rights request, or find support and
contact information.
Cybersecurity
Kroger implements cybersecurity practices appropriate
to the nature of the information we collect and use—
including technical, administrative and operational
procedures—to prevent loss, misuse or alteration.
Securing our business information, intellectual property,
customer and associate data, and technology systems
is essential for the continuity of our businesses, meeting
applicable regulatory requirements and maintaining the
trust of our stakeholders.
We have adopted enterprise cybersecurity risk
mitigation and governance processes, outlined in
detailed Kroger Cybersecurity Risk Management
(CRM) and Third-Party CRM programs and a Cyber
Incident Response Plan. Kroger CRM principles guide
our approach to monitoring threats and vulnerabilities,
and assessing and monitoring related controls.
These efforts support the Corporate Information
Security function, led by the chief information
security officer and chief information officer.
Kroger’s cybersecurity policies, standards, processes
and practices are integrated into the company’s
overarching risk management system in an effort to
enhance our ability to safeguard our operations and
information, which includes quarterly cybersecurity
reporting to the board.
We experience cybersecurity threats and incidents from
time to time. We are not aware of any material risks
from cybersecurity threats, including as a result of any
previous cybersecurity incidents, that have materially
affected or are reasonably likely to materially affect us,
including our business strategy, our financial condition,
results of operations or cash flows.
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
57
Appendix
Governance
Public Policy Practices
Kroger actively engages in public policy and
advocacy in ways that support the interests of our
associates, customers, communities and company.
We recognize that public policy and legislation at the
federal, state and local levels can affect our business
operations and our future ability to provide economic
opportunities in our communities and create value for
our shareholders.
A centralized Corporate Affairs team leads the
government relations strategy and management
approach to align with responsible business practices
and reflect Our Values, with oversight from the Public
Responsibilities Committee of the board. Advocacy
efforts cover a wide range of topics, including ESG
topics affecting people and our planet and reflecting
our Zero Hunger | Zero Waste impact plan. These
include policies that increase food safety, access
and security while preserving affordability for
our customers.
We recently expanded Kroger’s government
relations team to focus on federal policy and state
legislative activity.
KroPAC
KroPAC is the company’s federal political action
committee (PAC) funded by voluntary contributions
from salaried management associates. All PAC
contributions are conducted in compliance with
Federal Election Committee regulations governing
solicitations. KroPAC makes contributions, where
allowed, to federal, state and local political
candidates, initiatives and organizations.
Other Contributions
Occasionally, and where permitted by law,
Kroger may make political contributions directly
to state or local candidates using corporate funds
and following relevant laws and regulations.
We do not use corporate funds to air advertisements
or finance specific activities in favor of or in
opposition to particular candidates. For more
details, see our Political Contribution Policy.
We comply with all laws and required reporting
governing political contributions, and we publish
a Political Contribution Report that outlines the
source of funds for contributions, giving by political
party, and giving by state. This report also includes
a list of national trade associations of which Kroger
is a member. These associations help represent
the company’s perspectives to legislators and
regulators; however, we do not always share the same
perspectives on policy matters as these associations.
Marketing Practices
& Product Labeling
Kroger develops marketing communications and
integrated campaigns to help customers make
purchase decisions that are right for them. We follow
applicable laws, regulations and best practices
and strive to work with others that do the same.
Our Brand
s, Marketing, Media Services, 84.51° and
Merchandising teams lead this work in partnership
with the Kroger Technology & Digital team, Ethics &
Compliance and our Privacy Office.
Our customers tell us they value receiving
personalized recommendations that deliver savings
on items they purchase regularly. We use information
from our loyalty program to develop personalized
recommendations every week to save our customers
time and money and to enhance their shopping
experience. We clearly share why and how we may
collect and use this information in our customer-
facing Privacy Policy and Privacy Center.
To fulfill our brand promise—Fresh for Everyone™—we
promote healthy options like fresh, natural and organic
choices across all customer segments and geographies.
We work with national, regional and local media and
advertising companies to connect with customers
through traditional, digital and social media channels.
A defined request for information process governs how
we select media companies. We ask specific questions
to understand their privacy practices and how they
create models and expand audiences without bias. In
the increasingly complex media landscape and digital
ecosystem, we ask vendors to share best practices in
communicating organically with multicultural audiences.
Across our operations, we avoid targeted marketing
to minors of products intended for adult purchase
and consumption, including adult beverages and
nicotine products.
Kroger Precision Marketing
Kroger Precision Marketing (KPM) is Kroger’s retail
media business. By applying 84.51° data science and
Kroger’s popular loyalty card program, KPM connects
customers to brands through advertising.
KPM is among a small group of media publishers to
achieve Platinum certification from the Trustworthy
Accountability Group. The certification demonstrates a
commitment to upholding brand safety, eliminating ad
fraud and combating malware. In 2023, KPM became
the first retail media business to join Ad Net Zero,
a trade association focused on sustainability in the
advertising industry.
Product Labeling
Kroger adheres to the food labeling requirements
outlined by the U.S. FDA and the United States
Department of Agriculture (USDA), including the
USDA’s Agricultural Marketing Service, which oversees
the National Organic Program and food grading
system, and the Food Safety Inspection Service, which
regulates the labeling of meat, poultry and shelled
egg products.
We also adhere to the Federal Trade Commission’s
Fair Packaging and Labeling Act, which requires that
package labels identify the commodity; the name
and place of business of the manufacturer, packer or
distributor; and the net quantity in weight, measure
or numerical count. For general merchandise items,
we adhere to the requirements and guidelines set
by the Consumer Products Safety Commission and
state regulations to provide consumers with safe
use information.
Labeling practices for items we sell in stores and online
are overseen by teams including Ethics & Compliance,
Corporate Food Technology,
Our Brand
s and
Merchandising. Our primary focus is on products in the
Our Brand
s portfolio, including Kroger-manufactured
items and other items sourced or produced under
contract with third-party manufacturers. For
Our
Brand
s, Kroger aims to develop accurate on-pack
messages and labels that include required information
and, where relevant, clear and supported claims to
help inform customers of product safety information
or benefits, such as allergens or health, nutrition or
environmental attributes.
We expect consumer packaged goods and national
brand suppliers to be responsible and accountable
for complying with relevant labeling requirements.
Additional information about product nutrition and
sustainability is available in the Health & Nutrition and
Supply Chain Sustainability sections.
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
58
Appendix
Governance
Retail Security
Kroger monitors and implements best practices in
associate training, preparedness and prevention
for our stores across the country. Safety and loss
prevention teams in Retail Operations and Supply
Chain functions lead efforts to enhance safety and
security with oversight from Kroger’s executive
leadership team and Public Responsibilities
Committee of the board.
Reflecting the ongoing safety incidents and threats
across the retail industry, we have continued to
evolve our approach to increasing safety for our
associates and customers.
Personal Safety
Working collaboratively with law enforcement and
other authorities, we monitor risk and take proactive
steps to protect our associates, customers and
communities. We incorporate safety principles and
best practices into facility and parking lot designs,
including mobile security units and real-time video
monitoring to prevent and deter safety incidents.
Through a combination of Kroger and third-party
services, we provide security presence at relevant
stores, depending on local needs.
We also create and implement training programs
to foster safe and secure workplaces. We require
associates to carefully review a Personal Safety
training program first introduced company-wide
several years ago, achieving a 98% completion
rate in 2023. This training focuses on increasing
awareness of what to do in the event of an active
assailant in our facilities.
If unexpected events occur on-site, we focus on
how to care for our associates holistically, both at
home and at work. Kroger’s comprehensive benefits
include free counseling and access to a well-being
assistant 24 hours a day, seven days a week. We also
provide specialized toolkits and training for leaders
to understand how best to support their teams and
have thoughtful conversations with associates about
their well-being.
To support recovery for affected associates,
customers and communities, we also support local
victims’ advocacy groups and provide resources to
help people heal and restore balance to their lives.
Preventing Theft & Loss
Kroger’s Asset Protection team employs sophisticated
systems to minimize theft from our stores and
reduce product losses. This includes technology
aimed at reducing loss at self-checkout stations and
other innovative systems. Alongside the Buy Safe
America Coalition, Kroger has been on the forefront
of supporting legislation that curbs the impact
of organized retail crime. Organized retail crime
continues to plague the industry through large-scale
theft of items, which are often sold on e-commerce
platforms without verification of how the seller
obtained the goods. We believe our work helps
protect our associates and customers while advancing
safer communities.
Kroger also supported the Integrity, Notification
and Fairness in Online Retail Marketplaces for
Consumers Act (INFORM Consumers Act) as part
of the Consolidated Appropriations Act of 2023.
The INFORM Consumers Act is designed to make it
easier for shoppers to identify exactly who they are
buying from and make it harder for deceitful sellers
to avoid identification.
Firearm Policy
Kroger does not sell firearms or ammunition. We
follow local laws regarding open carry policies; in
addition, we ask our associates and customers not to
bring firearms to Kroger facilities, even in communities
where it’s permitted.
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
59
Appendix
Governance
Kroger is part of—and dependent on—global food and consumer
goods supply chains. We aim to do our part to build more
responsible, resilient supply chains for people and our planet.
Responsible Supply Chain & Sourcing
Our Approach
We believe responsible and more sustainable sourcing
enables us to continue offering our customers a wide
range of affordable products. We manage sourcing
topics and issues within the context of our business and
Thriving Together
strategies, recognizing there may be
trade-offs and unintended consequences of specific
single-topic decisions or policy changes.
Kroger’s centralized Merchandising team selects the
desired product assortment by category and works
closely with Sourcing leaders to determine and review
potential suppliers, sourcing regions and contract terms.
Our management approach to responsible sourcing is
led by a cross-functional Responsible Sourcing Steering
Committee comprising leaders in Ethics & Compliance,
Merchandising, Sourcing and Corporate Affairs. Kroger’s
executive leadership team and the board’s Public
Responsibilities Committee provide additional oversight.
Information about product sustainability and supplier
expectations is included in the Planet section.
Managing Our Supply Chain
Our customers trust that the products we offer come
from reputable suppliers who operate responsibly. We
have relationships with many strategic, long-standing
vendors, and we also welcome new vendors to bid
for business. Kroger’s Sourcing and Merchandising
teams lead processes to identify, evaluate and onboard
new suppliers to advance progress on our social and
environmental goals.
Kroger has a long-standing focus on responsibly
sourcing products to manage and mitigate potential
supply chain risks to people and our planet. As a retailer
with thousands of products in wide-ranging categories
across our stores and seamless ecosystem, responsible
sourcing discussions increasingly include both social
and environmental topics.
As a principle and business practice, we believe decisions
about product sourcing and price are exclusively Kroger’s
to make directly with our suppliers.
Supplier Expectations
An evolving risk-based approach informs program
management and responsible sourcing policies,
practices and oversight. All suppliers, including
those providing
Our Brand
s ingredients and finished
products, are expected to:
•
Follow the Kroger Vendor Code of Conduct, including
establishing effective management systems to
maintain safe, fair working environments in all
facilities and manage risks
•
Accurately disclose and update production facilities
and locations in Kroger’s Supplier Hub centralized
vendor management system
•
Respond promptly to Kroger requests for information
about potential allegations and issues
•
Complete and submit required documentation,
assessments and certifications upon the required
schedule and agree to additional compliance
assessments upon request
Many large, established Kroger suppliers already have
robust management systems in place to comply with
applicable laws, regulations and the Kroger Vendor Code
of Conduct. We recognize that newer or smaller suppliers
may need additional resources to clarify expectations
and enhance their management systems in ways that
work for their business. We welcome the opportunity
to engage and include new brands, local farmers and
growers, diverse-owned businesses and others to help
them operate responsibly and have a positive impact in
our communities.
Vendor Code of Conduct
All suppliers are expected to comply with Kroger’s Vendor
Code of Conduct as a condition of doing business with
us. The Code of Conduct, which outlines expectations for
responsibly managing operations and respecting the rights
of workers, is informed by internationally agreed-upon
standards, including the United Nations Guiding Principles
(UNGPs) on Business and Human Rights, the International
Bill of Human Rights and the International Labour
Organization Declaration on Fundamental Principles and
Rights at Work.
Kroger plans to publish a new vendor guide with additional
details on vendor expectations to help suppliers build or
improve their responsible sourcing management systems
and practices. This will include a range of resources to
support large and small vendors. We are also developing
new training resources for Kroger leaders and associates
involved in the selection and oversight of suppliers.
Material Topics
RESPONSIBLE SUPPLY CHAIN & SOURCING
HUMAN RIGHTS
ANIMAL WELFARE
Select Responsible Sourcing
Policies
Vendor Code of Conduct
Standard Vendor Agreement
Supplier Diversity & Inclusion Program
Human Rights Policy
No-Deforestation Commitment:
Our Brand
s
Seafood Sustainability Policy
Goal to Protect Pollinators
& Biodiversity
Animal Welfare Policy
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
60
Appendix
Governance
Kroger’s centralized Supplier Hub vendor management
system houses detailed information on suppliers’
compliance with Kroger’s policies and U.S. laws
and regulations related to our business. It provides
a mechanism for alerting teams and addressing
suppliers not in compliance. Planned enhancements to
the system will further improve oversight of items in
production at suppliers’ facilities.
In 2023, we invested resources to enhance several
responsible sourcing processes and tools to
improve visibility to supplier, vendor and facility
risk and performance over time. These tools will
also help inform future decisions about product
selection, sourcing regions and more to improve
supplier accountability.
Supplier Diversity & Inclusion
At Kroger, we believe a diverse supply chain
strengthens our business, improves our customer
experience and supports our communities. We take
an intentional approach to fostering the growth and
development of certified, diverse-owned business
enterprises through a refreshed Supplier Diversity
& Inclusion Program.
This program streamlines Kroger’s procurement
process, helping connect businesses of all sizes and
sectors with the appropriate decision-makers within our
company. During the past 35 years, the program has
helped businesses:
•
Determine if their products and/or services align
with business strategies
•
Understand our customers’ needs and trends in
the marketplace
•
Collaborate to increase positive impact in
our communities
Assessing Risk
Kroger works with thousands of vendors to support our
associates, serve our customers and keep our business
running smoothly every day. We believe growing our
business and operating and sourcing responsibly has
a positive impact in local communities and around
the world. We use data and insights to maintain and
enhance management systems that help identify and
mitigate potential and evolving risks in our supply chain.
Kroger’s risk-based approach includes our policies,
goals and expectations for vendors and others who do
business with us. We also have long-standing programs
in place to manage sourcing for higher-risk commodities,
like seafood, palm oil and more, and we continually
review emerging issues. We have an established process
for reviewing issues that may arise in the supply chain.
We believe in the corrective action planning process
to help suppliers build capacity, improve operating
performance and correct issues wherever possible. If
necessary, we stop doing business with suppliers who
repeatedly violate our Code of Conduct and policies
and fail to follow through on timebound corrective
action plans.
We offer resources and self-assessment tools to help
suppliers of all sizes understand our expectations,
evaluate where they are today, and build more
effective management systems for their business
where appropriate.
Kroger has systems and processes in place to monitor
known and emerging risks across product categories
and sourcing regions. Our Responsible Sourcing
Steering Committee meets regularly to monitor and
manage critical topics, trends and risks for people
and our planet. An extended team of internal and
external subject matter experts also provide enhanced
monitoring for topics like human rights, seafood
sustainability, chemical safety, apparel production
and more.
During the next two years, we will enhance our reporting
capabilities and refresh our Tier 2 supplier program to
encourage Tier 1 suppliers to offer opportunities for all
businesses to participate in their selection processes.
Industry Collaboration
Kroger is a long-standing member of the Billion Dollar
Roundtable, which promotes supply chain diversity
excellence and includes member companies with
a documented supply chain spend of $1 billion or
more annually.
In 2023, Kroger also collaborated with the Women’s
Business Enterprise National Council (WBENC) to conduct
a first-ever Industry Accelerator | Kroger Feeding Growth
Opportunities program for women-owned businesses. This
eight-week cohort-style accelerator program culminated in
a live virtual pitch competition. Kroger is the first company
to participate in an accelerator program of this kind that
combines education, mentorship and pitching.
Through the program, nearly 400 individuals participated
in a public session outlining how to do business with
Kroger. Then, more than 120 women-owned businesses—
all WBENC Certified and registered in Kroger’s Supplier
Hub—applied to be part of the Industry Accelerator
program. Twenty individuals were selected for the
cohort plus additional coaching and capacity-building
sessions. Kroger’s Enterprise Sourcing and Merchandising
departments provided tailored mentorship to support
their success.
Kroger welcomes collaborations with diverse-owned
business enterprises, including companies owned,
controlled and managed by individuals who are ethnic
minorities, women, veterans, people with disabilities
or members of the LGBTQ+ community. We value
these relationships because they contribute to the local
economy and community, and their products and services
are often unique and popular among customers.
Our approach enables certified diverse-owned business
enterprises to participate and compete for Kroger
sourcing contracts.
Refining Our Approach
During the past two years, Kroger has updated its
approach to Supplier Diversity & Inclusion. We invested
in and improved our systems, including new verification
methods to validate Tier 1 suppliers, or vendors that
Kroger pays directly, and Tier 2 suppliers, which are paid
by Tier 1 suppliers. We completed a thorough review of
the certification status for all diverse-owned businesses to
update our baseline and continue offering certified diverse
suppliers an opportunity to compete for contracts.
In 2023, Kroger’s total spend with diverse-owned
suppliers was $3.58 billion, a slight increase versus
the prior year. Our year-over-year performance
reflects the results of our comprehensive supplier
verification process.
2023
$3.6B
2022
2021
$3.5B
$3.1B
Annual Spend with Diverse-Owned Businesses
2021–2023
1
1.
Reflects restated results after comprehensive review of supplier certification status
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
61
Appendix
Governance
Human Rights & Social
Compliance
We recognize Kroger’s responsibility to respect human
rights for workers in our own operations and global
supply chain. We continue to evolve our policies
to embed human rights as a key element of our
responsible sourcing practices.
We outline Kroger’s commitment to—and governance
of—human rights in our Human Rights Policy and
Vendor Code of Conduct. This policy and approach
were developed with insights from internal and
external subject matter experts, investors, NGOs
and others. The Public Responsibilities and Audit
committees of the board oversee progress on human
rights and social compliance.
We continually review our approach and processes to
help advance positive changes. In 2023, we advanced
progress by:
•
Conducting a new social risk analysis
and segmentation
•
Updating our internal human rights due diligence
(HRDD) framework
•
Improving tools and resources for our social
compliance program
•
Publishing human rights impact assessments
(HRIAs) and initiating follow-up actions
We recognize the importance and power of collective
action and pre-competitive collaboration with others in
the private and public sectors. We remain committed
to engaging and encouraging our suppliers to help
advance positive changes for workers around the world.
Statement of Salient Risks
Kroger has identified a list of the company’s most
salient human rights risks—the highest potential
risks to people’s human rights as a result of our
activities or business relationships. This assessment
aligned with the UNGPs. This statement of
awareness of salient risks is included in our Human
Rights Progress Update.
Due Diligence
We recognize the need for human rights due
diligence to verify that Kroger and our suppliers
are upholding policies to respect human rights,
including the company’s Policy on Business Ethics
and Vendor Code of Conduct. Working with LRQA,
a global assurance partner, we continue to refine
our approach to managing human rights risks and
conducting due diligence in our own operations and
global supply chain.
Today, our due diligence framework specifically:
•
Acknowledges the need to engage relevant
stakeholders to listen and learn from others’
perspectives on human rights
•
Assigns ownership and accountability for specific
tasks across key departments
•
Documents escalation paths to review human
rights risks when identified
•
Outlines expectations for conducting HRIAs
•
Establishes and/or updates policies and decision-
making systems to assess suppliers’ performance
and provide feedback
•
Includes efforts to mitigate risks and consider
remedy for workers as appropriate
Worker Voice
We engage in constructive dialogue to listen, learn
and seek input about our management approach
from associates, customers, investors, advocacy
groups, suppliers and more. We follow a people-
first approach to complex food systems topics,
prioritizing and managing risks to people and trade-
offs that may result from single-topic advocacy.
Recent examples of how we embed worker insights
in our approach to responsible sourcing include:
•
Assessing salient human rights risks
and developing a human rights due
diligence framework
•
Developing a new goal to promote more
sustainable agricultural practices in our fresh
produce supply chain, reducing pesticide
exposure for farmworkers and nature-based
impacts from food production
•
Co-leading the development and rollout of the
International Fresh Produce Association’s Ethical
Charter and Ethical Charter Implementation
Program to promote responsible labor practices
among produce and floral suppliers
•
Conducting two HRIAs in our supply chain to
date, including interviews with rightsholders in
their native language(s)
Ethical Charter:
Produce & Floral Suppliers
Kroger’s approach to engaging produce and
floral suppliers is grounded in the Ethical Charter
on Responsible Labor Practices to responsibly
source fresh fruits, vegetables and flowers.
The Ethical Charter was published in 2018 by the
Produce Marketing Association and the United
Fresh Produce Association—now merged as the
International Fresh Produce Association—and
has been adopted and endorsed by many of its
members, including Kroger.
Kroger is among a group of food buyers—including
Costco, McDonald’s, Target and Walmart—leading
the development and adoption of the Ethical
Charter Implementation Plan (ECIP) among
produce and floral suppliers. The ECIP aims to
help growers strengthen management systems to
uphold Ethical Charter principles.
The ECIP reflects insights from a collaborative
pilot of Ethical Charter principles and practices
with four buyers, including Kroger, 20 suppliers
and 40 growers. The Ethical Food Initiative (EFI)
administers the program, which is overseen by an
advisory group of leading buyers, suppliers and
key stakeholders.
Kroger began onboarding select suppliers to
the ECIP in 2023, and we continue to expand
participation in 2024 and beyond.
People
Our Approach
Introduction
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Appendix
Governance
Human Rights Impact Assessments
As part of our due diligence framework, we completed
and published two HRIAs in 2023. Both HRIAs were
conducted by third-party researchers and included site
visits, interviews with rightsholders and a gender-equity
lens to assess unique risks for female workers.
The detailed reports are available in our online
ESG Hub:
•
HIRA: Mixed greens in California
•
HIRA: Farmed shrimp in India
Conducting these HRIAs helped the Kroger team learn
more about managing supply chain risks at production
facilities outside of our direct control. These insights
informed the evolution of our social compliance
program, including how we manage higher-risk
commodities and sourcing regions and how we engage
our suppliers and set clear expectations.
We also learned that HRIAs are complex, time-
consuming and resource-intensive. Collaborating with
other retailers or buyers is valuable and cost-effective;
however, it requires processes to avoid sharing sensitive
information. For the farmed shrimp HRIA—conducted in
collaboration with two other retailers—LRQA reviewed
and managed any information about specific facility
locations to avoid sharing competitive information.
HRIA findings are also limited to the sites visited and
people included at a specific point in time. Continual
oversight and supplier engagement are essential to the
process to monitor and manage risks as they change
over time.
Social Compliance Program
Kroger’s social compliance program is designed to verify
suppliers’ alignment with our Vendor Code of Conduct,
which informs vendors that the facilities they operate
may be subject to third-party social compliance audits.
Kroger’s Sourcing team oversees the social compliance
program and engages with other leaders and third-
party experts to manage and improve it, and to
measure progress. We aim to build strong supplier
relationships during onboarding and maintain them
through regular meetings, site visits, surveys and audits.
We determine audit scope and frequency through
several criteria, including where facilities are located,
what products they produce and inherent industry
risks. At a minimum, we require social compliance
assessments for all
Our Brand
s food and non-food
products and unbranded products (such as bulk
produce) processed at facilities outside the U.S.
Social audits are required for direct-import national
brand products where Kroger is the importer
of record. We also require social audits for raw
materials and ingredients used in Kroger-operated
manufacturing plants.
Updating Our Approach
Kroger works with third-party LRQA to manage key
elements of our social compliance audit program.
In 2023, we transitioned from our custom social
compliance audit to the LRQA ELEVATE Responsible
Sourcing Assessment (ERSA) 3.0 tool for all social
assessments. Assessment results and reports are
aligned with ERSA 3.0 standards, which meet and/or
exceed current industry standards and are updated
regularly based on trends in social compliance.
In 2023, we conducted a risk segmentation analysis,
developed key performance indicators and refined
escalation pathways for managing issues. These actions
established a more consistent process for proactively
managing risk, where possible, and addressing other
findings in a timely manner.
Reflecting an overall increase in worker-related
allegations in industry supply chains, we also expanded
the scope of our program to include more suppliers’
production facilities in North America. Going forward,
we expect to conduct more Foreign Migrant Worker
Assessments and Labor Risk Surveys in areas that may
pose higher risk for forced labor indicators.
Kroger also continues to raise awareness about
indicators of social and human rights risks in our supply
chain among leaders and associates who may visit
suppliers’ international facilities.
Continuous Improvement
We continue to adopt new tools and best practices
for supplier oversight to improve how we manage
the topic of human rights and social compliance. We
are continually learning and engaging other subject
matter experts to evolve our programs and work
collaboratively with others.
Kroger uses the LRQA EiQ supply chain due diligence
platform, which monitors and benchmarks social risks in
real time. Through this platform, we review our supply
chain and apply segmentation based on risks. We classify
primary product and commodity categories in our supply
chain based on two dimensions: risk exposure level
(high, medium or low) and ability to influence risk in our
supply chain (high, medium or low). This risk classification
informs decisions and next steps in sourcing and
supplier engagement.
EiQ also enables Kroger to monitor the status of
social compliance assessments, self-assessment
questionnaires (SAQs), corrective action plans and
worker sentiment surveys. The platform’s Sentinel
feature also monitors risk alerts globally so we can
proactively manage issues, engage suppliers and
develop response plans.
Supplier Risk Analysis
Kroger’s social compliance program is evolving to
manage supply chain risks more proactively and to
increase positive impact. In 2023, Kroger and LRQA
conducted a new supplier risk analysis to better
understand our potential supply chain impacts and
inform how we approach and schedule assessments.
Our objective is to achieve higher levels of transparency
in our supply chain over time.
Going forward, decisions about social compliance
assessments will consider areas of highest importance
to the company as well as our potential level of
influence to effect change. Segmenting the supply
chain by looking at spend and facility risk levels
provides key insights about our supply chain and where
we can direct capacity-building resources to help
vendors improve their management systems.
People
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Introduction
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Appendix
Governance
After careful review, we may decide to work with
vendors in a higher-risk category or location in order to
meet our customers’ needs. In this case, our updated
program includes increased monitoring and oversight of
these vendors and their facilities.
Assessment Process
While social compliance audits and SAQs are not
the solution to worker-related issues in global supply
chains, they are a foundational element and provide
important insights. Kroger conducts follow-up
discussions with suppliers if and when issues are
identified during an assessment to further understand
the situation and align on corrective actions
and timelines.
As noted above, Kroger recently improved its
assessment program to include the LRQA-owned
and -operated ERSA tools for social compliance.
The suite of ERSA tools enables Kroger to select
appropriate tools for certain sectors, such as
agricultural production, instead of a one-size-fits-all
approach. Some general merchandise facilities in our
supply chain are audited by Li & Fung, Ltd.
Informed by our risk segmentation, we conducted
social audits and assessments at suppliers’ facilities
around the world, with more than 70% focused on
higher-risk priority sites in our supply chain. We
conducted the highest number of assessments at
suppliers’ production sites located in China, based on
inherent risk, followed by India, Vietnam and Thailand.
Social Compliance Risk Segmentation
Risk Exposure
Ability to Influence
MINIMUM
Lower risk and
less important
MODERATE
Medium risk and
less important
SPECIALIZED
Lower risk and
more important
PRIORITY
High risk and
more important
Risk Categories
The supplier risk analysis uses LRQA tools to place
vendors in four distinct social risk categories:
priority, specialized, moderate and minimum. This
risk segmentation combines inherent and managed
sourcing risks for commodities and sourcing
countries to determine the appropriate use of social
compliance assessment tools and resources to
apply to specific supply chain sectors.
Inherent risks are related to the product or where
it is grown or made. Managed risks include issues
identified through the social compliance program,
including monitoring programs and assessment
results. With this additional information, we
can manage risks more proactively and focus
more resources, assessments and management
tools on higher-risk sites in the moderate and
priority segments.
Corrective Action Plans
When assessments identify critical issues, we require
suppliers to develop time-bound corrective action
plans (CAPs) and report progress. As part of our
program evolution, we are improving how we manage
the CAP process and providing resources to help
suppliers improve their management systems.
Lack of transparency during the assessment process
may be an indicator of more egregious issues, so
we make our expectations of transparency clear to
all suppliers. When suppliers have repeated non-
transparency findings in their audits, we work with them
directly to resolve the issue or terminate the supply
agreement if the issue persists. Assessment findings
that fall into the most severe category include evidence
of forced labor, child labor or attempted bribery.
Depending on the situation, we may suspend or
terminate the supply contract if alerted to these
findings, following our established escalation paths.
Kroger monitors CAP closure rates—the percentage
of CAPs that are successfully closed in the agreed-
upon time—as an indicator of program effectiveness.
In 2023, our CAP closure rate was 88%, down from
the prior year. As part of our evolving program, we are
working with LRQA to increase our CAP speed and
closure rate in 2024 and beyond.
Starting in August 2024, we shortened the time
facilities have to submit a CAP by 50% to encourage
faster corrective actions. We also updated our CAP
system to be more user-friendly for suppliers and
facility managers. We continue to offer digital learning
courses as part of the CAP process to build vendors’
capacity and enhance management systems.
2023
10%
Significant Improvement Required
2022
2021
12%
10%
2023
36%
Approved Facilities
2022
2021
34%
31%
2023
54%
Approved with CAPs
2022
2021
54%
59%
Social Compliance Audit Findings
2021–2023
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Introduction
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Appendix
Governance
Animal Welfare
The welfare of animals in our protein supply chain has
long been a priority for Kroger. We aim to advance the
welfare of animals that produce food while balancing
other strategic priorities that affect people and our
planet. We work with suppliers, animal welfare experts
and other stakeholders to advance standards that
protect workers and animals and that preserve access
to affordable proteins for our customers.
The company’s Corporate Food Technology (CFT) team
leads our approach to animal welfare in the context of
animal agriculture and sustainable protein production,
with oversight from senior leaders and the Public
Responsibilities Committee of the board.
Our Approach
We outline our approach in Kroger’s Animal Welfare
Policy, which was developed with insights from internal
and external subject matter experts. Our policy reflects
the Five Domains of Animal Welfare, an internationally
respected approach that emphasizes current animal
science and outcome-based standards. We continue
to engage our suppliers and others in the industry to
further develop and align with emerging practices for
measuring animal welfare outcomes.
Our primary focus remains advancing welfare for
laying hens, pigs, broiler chickens, and beef and
dairy cattle in ways that preserve affordability for
our customers. A detailed Animal Welfare Update
provides additional context on goals and milestones
for specific proteins.
Kroger is not directly involved in raising or harvesting any
animals in our protein supply chain. We require suppliers
to adopt industry-accepted animal welfare standards and
provide required welfare audit results. We comply with
all relevant state legislation and regulations. An internal
working group oversees policies and progress and
provides regular updates to leaders.
We participate in industry groups and collaborative
platforms to stay informed of key developments in
animal welfare and protein production. This includes
membership and participation in the Global Coalition for
Animal Welfare (GCAW), a multi-stakeholder group of
protein producers, foodservice companies, restaurants
and retailers. GCAW is administered by a secretariat and
has dedicated working groups to advance welfare for
laying hens, broiler chickens and pigs.
Laying Hens
Kroger is working with suppliers, animal welfare experts
and other stakeholders to support the transition to
higher welfare laying hen housing systems over time.
We will continue to offer a variety of eggs to ensure
that affordable, healthy protein options are accessible
for all Kroger customers.
Given the current rate of industry progress and our
customers’ desire for affordability, Kroger plans to
transition about 70% of eggs sold (by units) to cage-free
or higher-welfare standards by 2030. We established the
following tentative milestones along the way: 2022: 33%;
2024: 41%; 2025: 54%; and 2028: 61%. We will determine
whether continued progress beyond 2030 is feasible and
if so, by when, based on customer insights, regulatory
timelines and industry transition.
We anticipate investing about $45 million to support
this roadmap, including investments in sourcing
agreements, pricing, promotions and merchandising.
2023 Progress
In 2023, cage-free eggs represented 51.9% of total egg
revenue company-wide (2022: 32.3%). In 2021, cage-
free eggs represented 45.9% of total egg revenue. On a
volume basis, units of shell eggs sourced from laying hens
in cage-free housing systems held steady at 33.3% in
2023 (2022: 33.6%).
Kroger is currently on track to achieve our next milestone
of 41% cage-free or higher eggs by the end of 2024.
We are monitoring changes in state regulations and
compliance timelines for cage-free eggs as part of
achieving our goal roadmap and milestones.
Kroger continues to encourage our customers to trade
up to higher-welfare egg options if feasible. We offer
affordable Simple Truth® cage-free eggs, promote
cage-free or higher-welfare eggs in weekly advertising
circulars and dedicate preferred shelf space to higher-
welfare options.
Many years ago, Kroger and Kipster Farms, the
innovative egg production system founded in the
Netherlands, collaborated to bring the world’s first
carbon-neutral, next-level cage-free eggs to customers
in the U.S. In 2022, we introduced Simple Truth® +
Kipster eggs and continued to expand distribution
over time. Today, these eggs are an affordable option
for customers who want to trade up to support higher
welfare and more sustainable production systems.
Customer Communications
Earlier this year, Kroger conducted new research to
understand what our customers care about most
when buying eggs and how we might make it easier
to understand common industry terms that may
be confusing.
We used this feedback—and input from suppliers,
industry associations and advocacy groups—to develop
new at-shelf signs to explain what terms like “cage-
free,” “pasture-raised” and “organic” really mean.
The new signs also reflect input from
Our Brand
s
and national brand egg suppliers on how to explain
differences in egg production systems. We began
testing these new signs in select stores in late 2024 and
will evaluate results over at least a six-month period to
inform future plans.
People
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Introduction
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Appendix
Governance
Broiler Chickens
We strive to promote higher-welfare practices among
suppliers raising chickens as an affordable fresh
protein option. We aim to achieve the following welfare
enhancements for at least 50% of our Simple Truth
Organic® and Simple Truth Natural® fresh chicken by
the end of 2024:
•
Prohibit broiler cages (2023: 100%)
•
Maximum stocking density of 6.0 pounds per square
foot (2023: 37.8%)
•
Enriched environments, including litter and lighting
(2023: 39.5%)
•
Processing in a manner that avoids pre-stun
handling and uses a controlled atmosphere system
(CAS) to induce an irreversible stun (2023: 14.5%)
Progress on broiler welfare goals has been slower
than anticipated due partly to producers’ pace of
infrastructure investments and heightened focus on
managing avian influenza. We continue to work with
animal welfare experts and suppliers to determine next
steps. We do not include breed changes as part of our
goal at this time.
Other Welfare Updates
Dairy:
Cooperatives supplying milk to Kroger’s
manufacturing plants and
Our Brand
s grocery
assortment must be in good standing with the National
Dairy Farmers Assuring Responsible Management
(FARM) Animal Welfare Program. We encourage
suppliers to adopt updated versions of the FARM
Animal Care standard. FARM Animal Care Version 5,
released in 2024, focuses on refining and clarifying
previous standards surrounding euthanasia, fitness for
transport, calf management and continuing education,
among others. We are also a signatory to the U.S.
Dairy Stewardship Commitment, supporting efforts
to measure and improve dairy production impacts on
people and our planet.
Pigs
While there is no single agreed-upon standard for sow
housing, we encourage suppliers to use the minimum
time necessary in individual stalls to enhance sow
health and welfare, protect workers and preserve
access to affordable, fresh pork.
Kroger’s goal is to source 100% of fresh pork from sows
in group housing systems by the end of 2025. Group
housing refers to systems where sows are moved to
group pens for the middle phase of gestation as early
as possible, no later than six weeks after breeding. We
established the following milestones toward our goal:
65% by 2023; 75% by 2024; and 100% by 2025.
Our current goal does not include processed pork items
like bacon and cooked ham. We believe focusing on fresh
pork will positively affect other pork products over time.
2023 Progress
In 2023, 62.2% of our fresh pork volume was sourced
from sows in group housing, nearly achieving our
published milestone. We did not report a baseline in
2022 due to questionable data quality and varying
group housing definitions among suppliers; however,
our 2023 progress represents significant work by the
Kroger team and our suppliers to procure fresh pork
that meets our definition of group housing.
Kroger is on track to meet or exceed our 2024 milestone
of 75%. We are also well positioned to achieve our goal
of 100% by the end of 2025. We continue to engage our
suppliers to increase the volume of fresh pork meeting
our goal.
To date, due to issues with our current labeling practices,
we are unable to report revenue from fresh pork from
sows in group housing systems as a percentage of
total fresh pork revenue. These numbers will reflect our
progress on volume as we get closer to our 100% goal.
Beef:
Suppliers of regular fresh beef and beef-based
ingredients going into Kroger plants advised that, to the
best of their knowledge, 97% of cattle were harvested
in regions with low- or no-deforestation risk and 94%
was from cattle born, raised and harvested in low- or
no-deforestation risk regions. We continue to work with
suppliers to advance animal welfare for cattle in our beef
supply chain.
Fish:
We recognize the growing body of work related to
advancing fish welfare in farm-raised and wild-caught
operations and processing. Kroger is engaging animal
welfare experts, industry groups and other stakeholders
to monitor developments on this topic. More information
about how we manage seafood sustainability is in the
Planet section.
People
Our Approach
Introduction
Planet
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Appendix
Governance
Appendix
In This Section
68
Key Performance Data Tables
72
Material Topics Summary
74
TCFD Index
75
SASB Index
77
2023 Supplemental Data Tables
People
Our Approach
Introduction
Planet
Governance
2024 Kroger ESG Report
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Appendix
Key Performance
Data Tables
The Kroger team recognizes our unique role in the future of food. We are helping build
a more resilient and equitable food system that preserves access and affordability—
today and in the future—by advancing more responsible and sustainable production
methods for the food and consumer goods on which we all depend.
Goals & Metrics
2021
2022
2023
Baseline
Target Year
Status
Associate Wages & Benefits
Cumulative investment in our associates’ compensation and benefits
$1.2B
$1.9B
$2.4B
2018
–
Increase average retail hourly wages and benefits over time
Over $17/hour; over
$22/hour including
benefits
Over $18/hour; over
$23.50/hour including
benefits
Over $19/hour; nearly
$25/hour including
benefits
–
–
Food Access & Affordability
Increase annual sales of affordable, quality
Our Brands
portfolio of products
$28B
$30B
$31B
–
–
Introduce new affordable
Our Brands
products
660
680
700+
–
–
Annual total meals donated to our communities—food and charitable donations
546M
599M
455M
–
–
Cumulative total meals donated since 2017—food and donations
2.3B
2.9B
3.4B
2017
2025
Donate surplus fresh food from stores and facilities to our communities through Kroger’s Zero Hunger | Zero Waste Food
Rescue program
94M pounds
106M pounds
114M pounds
–
–
100% of retail stores actively donating surplus fresh food
93%
100%
100%
2017
2025
Company-wide donations of fresh Produce, Deli and Dairy items make up 45%+ of total donations to improve nutrition security
42%
45%
45%
2017
2025
Charitable Giving
Total annual charitable giving to our communities
$343M
$336M
$329M
–
–
Share of total charitable giving donated to national and local organizations helping end hunger
$210M
$253M
$256M
–
–
Supplier Diversity & Inclusion:
Certified diverse-owned suppliers have the opportunity to participate and compete for contracts
Annual spend with certified diverse-owned businesses
1
$3.1B
$3.5B
$3.6B
–
–
People:
Serving Our Associates, Customers and Communities
M = million B = billion
1.
Reflects restated results after comprehensive review of supplier certification status
Achieved
Did not
achieve
On track
Area of focus
Achieved ahead
of schedule
Significant
progress
Status key
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Introduction
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Governance
Appendix
1.
Consistent with prior years, partial Scope 3 emissions for 2023 are reported in the Climate Impact and Supplemental Data sections of the report. We also include a full Scope 3
inventory for 2021. We will report full Scope 3 inventories in the future
2.
Progress reflects calendar year data with the exception of construction waste, which reflects fiscal year
3.
We calculated our first packaging baseline for
Our Brands
products in 2022 for the 2021 performance year. The current dataset is focused on
Our Brands
food; health and
beauty; cleaning; and deli and bakery products. We continue to expand on and improve our packaging dataset, particularly as we prepare for legislated reporting in the future.
Narrative about additional stated packaging sustainability goals is included in the Waste & Circularity section of the report
Planet:
Protecting Natural Resources for a Brighter Future
Goals & Metrics
2021
2022
2023
Baseline
Target Year
Status
Climate Impact
1
Achieve a 30% cumulative reduction in GHG emissions (percentage reduction from baseline; annual total Scope 1 and 2 GHG emissions)
9.1%
5,251,448 MTCO
2
e
15.2%
4,894,705 MTCO
2
e
12.0%
5,081,613 MTCO
2
e
2018
2030
Waste & Circularity
Operational Waste
Achieve 90%+ waste diversion from landfills company-wide
2
79%
82%
82%
2016
2025
Phase out single-use plastic grocery shopping bags
Developing roadmap
Using pilots to refine
roadmap
Using pilots to refine
roadmap; 700+ stores
phased out plastic
bags due to legislation
2018
2025
Food Waste
Reduce total food waste generated in retail stores by 50% cumulatively from 2017 baseline (cumulative reduction; annual tons generated)
19.7%
269,382 tons
26.2%
245,289 tons
20.0%
265,773 tons
2017
2025
Achieve 95% diversion of remaining retail food waste from landfill
48.8%
45.9%
51.7%
2017
2025
Strive for 95% or more of retail stores participating in food waste recycling programs
92%
92%
95%
2017
2025
Our Brands Product Packaging Sustainability
3
Seek to achieve 100% recyclable, compostable and/or reusable packaging
40%
37%
52%
2020
2030
Increase recycled content in packaging so
Our Brands
portfolio collectively contains at least 10% recycled content
14%
18%
10%
2020
2030
Biodiversity & Resource Conservation
Pollinators
Set new Goal to Protect Pollinators & Biodiversity to reduce pesticide use in fresh produce supply chains
–
–
–
–
–
NEW
Achieved
Did not
achieve
On track
Area of focus
Achieved ahead
of schedule
Significant
progress
Status key
People
Our Approach
Introduction
Planet
2024 Kroger ESG Report
69
Governance
Appendix
Goals & Metrics
2021
2022
2023
Baseline
Target Year
Status
Seafood Sustainability
1
Source 95% or more of wild-caught seafood from fisheries that are Marine Stewardship Council (MSC) certified, in MSC full assessment,
in comprehensive fishery improvement projects or certified by other Global Sustainable Seafood Initiative-recognized programs
94%
95%
96%
2020
Ongoing
Preferentially source wild-caught seafood volume from fisheries that are MSC certified
77%
76%
80%
2020
Ongoing
Source 95% or more of farm-raised seafood from farms that are Best Aquaculture Practices 2-Star or greater certified, Aquaculture
Stewardship Council certified or GLOBALG.A.P. certified
98%
99%
98%
2020
Ongoing
Source 100% of shelf-stable tuna from companies aligned with the International Seafood Sustainability Foundation
2
97%
98%
99%
2020
Ongoing
Source 20% of
Our Brands
shelf-stable tuna from fisheries that are MSC certified
2.7%
17.7%
7.3%
2020
2025
No-Deforestation Commitments
3
Source palm oil, palm kernel oil and palm oil derivatives in
Our Brands
products from sources certified to the Roundtable on Sustainable
Palm Oil supply chain standard (percentage of ingredient volume that is from certified sources)
88%
96%
98%
N/A
Ongoing
Used post-consumer recycled content fiber and/or virgin fiber certified to FSC, SFI or PEFC standard
Kroger plants (percentage of packaging procured, by weight, from certified sources and/or including recycled content)
95%
4
95%
99%
N/A
2025
All
Our Brands
household paper products and paper product packaging (percentage of material, by weight, from certified sources and/
or including recycled content)
Household: 92%
4
Packaging: 33%
Household: 93%
Packaging: 45%
Household: 94%
Packaging: 45%
N/A
2030
Use deforestation-free soy-based ingredients in Our Brands products
Kroger plants (percentage, by weight, from no-/low-risk countries)
100%
99%
99%
N/A
2025
All third-party produced Our Brands products (percentage, by weight, from no-/low-risk countries)
90%
Assessed periodically
93%
5
N/A
2030
Use deforestation-free beef-based ingredients in
Our Brands
products and fresh beef
Beef in fresh meat department and Kroger plants (percentage, by weight, harvested in no-/low-risk countries; born, raised and
harvested in no-/low-risk countries)
99% (87%)
99% (78%)
97% (94%)
6
N/A
2025
All third-party produced
Our Brands
products (percentage, by weight, from no-/low-risk countries)
26%
Assessed periodically
50%
7
N/A
2030
1.
Progress reflects calendar year data. The timeline for these goals ended in 2023. We are revising the goals to make them ongoing so that we continue to strive for and
maintain 95% or greater alignment with Kroger’s Seafood Sustainability Policy for our Seafood department
2.
This is an enduring commitment that we continue to maintain. Percentages are measured by volume. In 2023, the remaining tuna not aligned with the International
Seafood Sustainability Foundation alignment requirement was a new product that we expect to align with this requirement in the future
3.
No-deforestation goal progress reflects calendar year data with the exception of our packaging baseline calculation, which reflects fiscal year data
4.
We restated 2021 values to reflect a clarification to data inputs
5.
In 2023, 93% of soy-based ingredients in Kroger third-party manufactured
Our Brands
products was from low- or no-deforestation risk regions and 2% was from
potentially high-risk regions. Suppliers of products with the remaining 5% of ingredients could not provide visibility to the country of origin
6.
97% of beef-based ingredients in our fresh meat case and manufacturing plants, by volume, was harvested in regions with low- or no-deforestation risk. In addition,
94% was from cattle born, raised and harvested in low- or no-deforestation risk regions
7.
In 2023, 50% of beef-based ingredients in Kroger third-party manufactured
Our Brands
products was from low- or no-deforestation risk regions, and 49% was from
potentially high-risk regions. Suppliers of products with the remaining 1% of ingredients could not provide visibility to the country of origin
Achieved
Did not
achieve
On track
Area of focus
Achieved ahead
of schedule
Significant
progress
Status key
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Introduction
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Appendix
Goals & Metrics
2021
2022
2023
Baseline
Target Year
Status
Responsible Sourcing: Animal Welfare
Laying Hen Housing
Revenue:
Increase sales of shell eggs from laying hens in cage-free or better housing systems as a percentage of total egg revenue
1
45.9%
32.3%
2
51.9%
–
–
Volume:
Increase shell eggs sourced from laying hens in cage-free housing systems or better (units: dozens) to 70%
1
27%
33.6%
33.2%
–
2030
Sow Housing
3
Volume:
By 2025, Kroger aims to source 100% of fresh pork from sows in group housing systems, based on availability
–
–
62.2%
–
2025
Broiler Chicken Welfare
4
Achieve the following welfare enhancements in at least 50% of our supply for Simple Truth Organic® and Simple Truth Natural® fresh chicken:
Maximum stocking density of 6.0 pounds/sq. foot
17.5%
17.9%
37.8%
–
2024
Prohibit broiler cages
100%
100%
100%
–
2024
Enriched environments, including litter, lighting and enrichments
48%
41.9%
39.5%
–
2024
Processing in a manner that avoids pre-stun handling and uses controlled atmosphere systems (CAS)
10.4%
10.9%
14.5%
–
2024
1.
Restated progress to align shell egg units to dozens for all years
2.
This percentage declined in 2022 as a result of customer purchasing behaviors, supply constraints for cage-free eggs and pricing changes during recent inflationary periods
3.
Given the lack of industry alignment on standards and definitions for sow housing, we are unable to determine accurate year-over-year performance for 2022 and prior years
4.
Goal progress is impacted by industry challenges, such as the time and cost required to transition growing operations to larger barns and CAS systems
Governance
Achieved
Did not
achieve
On track
Area of focus
Achieved ahead
of schedule
Significant
progress
Status key
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Introduction
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Appendix
People
Topic Definition
Tier
Location
Customer Experience
Providing exceptional service and value and improving the customer experience through advances in areas such as online ordering, home delivery and digital solutions that offer greater flexibility for how
customers shop. Engaging with customers and measuring customer satisfaction.
2
Page 27
Diversity, Equity & Inclusion
Building a diverse and inclusive workforce, fostering an environment of nondiscrimination where diversity is a competitive advantage and providing equal opportunities for associates.
2
Page 24
Employee Health,
Safety & Well-Being
Providing safety training and equipment, safe working conditions and access to resources to maintain and improve associates’ health and well-being.
2
Page 26
Food & Product Access &
Affordability
Increasing equitable access to affordable fresh foods to improve food security as well as affordable non-food products and other essentials. Promoting inclusive products to support a wide range of
customers’ preferences and needs. Optimizing digital capabilities to advance food and product access.
1
Pages 13, 28
Food Safety
Promoting food safety in our manufacturing plants, distribution centers and retail stores by establishing and maintaining science-based food preparation and handling policies and processes. Developing and
maintaining programs to address emerging food safety topics. Managing product recalls efficiently.
1
Page 55
Health & Nutrition
Encouraging customers to purchase healthier and more nutritious food. Increasing awareness of the nutritional value of food and health improvement opportunities among customers and advancing nutrition
security and wellness in our communities. Providing accessible pharmacy and retail health clinic services.
1
Page 29
Labor Relations
Promoting fair labor practices, respecting associates’ freedom of association and right to collective bargaining, and participating in proactive conversations with associates, including those covered by
collective bargaining agreements.
2
Page 23
Local Communities
Using community engagement principles to share updates on the company’s business and operations, discuss community priorities, participate in local events, provide charitable support and more. Creating
direct and indirect economic value in local communities where associates and customers work and live through local hiring, volunteerism and giving.
2
Page 31
Non-Food Product Safety
Providing customers with high-quality non-food products (health and beauty products, apparel, home goods and more) that meet or exceed safety and regulatory requirements. Setting robust standards for
suppliers that produce non-food products.
3
Page 55
Retail Security
Promoting the physical safety of retail supermarkets by increasing associates’ awareness and preparedness for managing security events or issues, including theft, organized retail crime, active assailant
situations or open carry laws. Optimizing digital capabilities and advanced technologies to improve retail security.
3
Page 59
Talent Attraction,
Engagement & Retention
Creating and maintaining a workplace of choice by offering competitive wages, quality benefits and a company culture that offers purpose-driven work and opportunities for advancement. Increasing
associate engagement and training and improving job performance and retention. Using technology to improve talent attraction, engagement and retention.
1
Pages 21, 22
ESG Topic Definitions
To address the complex issues most relevant to our business, we continue to learn from internal and external stakeholders through the
materiality assessment process and ongoing engagement. The topics listed below were identified and prioritized in our latest materiality
assessment, completed in early 2023. We outline the process and results of this double materiality assessment on pp. 10–11 of this report.
Material Topics Summary
1
1.
Topics and definitions reflect input from Kroger’s stakeholders through regular engagement and this materiality assessment
process. Definitions provide the boundaries for each topic and do not reflect a specific company policy or commitment
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Planet
Topic Definition
Tier
Location
Agricultural Practices
Promoting responsible pesticide, fertilizer and soil management practices, including efforts to reduce negative impacts on pollinators. Supporting regenerative and resilient agriculture methods, such as crop
cycling, agroforestry, livestock integrations, no- or low-till techniques and cover crops.
2
Page 48
Biodiversity & Conservation
Conserving natural resources and biodiversity by supporting responsible land management and forestry practices in our operations and supply chain, including efforts to reduce deforestation and land-use
change. Offering wild-caught and farm-raised seafood from certified sources, supporting fishery improvement projects and removing at-risk species from products and stores.
3
Page 48
Climate Change Resilience
Anticipating, preventing and mitigating long-term effects of climate change on our business and supply chain, including extreme weather conditions, regulatory changes and technology changes.
2
Page 41
Energy & GHG Emissions
Collecting and measuring Scope 1, 2 and 3 GHG emissions data from building and fleet management in the company’s retail, manufacturing, supply chain and other operations, as well as upstream and
downstream in the value chain. Conducting activities that seek to meet emissions-reductions targets, including improvements in energy efficiency, reduction of refrigerant emissions and increased use of
renewable energy.
1
Pages 37, 77
Food Waste
Reducing the amount of food waste generated in the company’s operations, recovering safe unsold surplus food for donation to feed people, and diverting from landfill any inedible food scraps through food
waste recycling programs.
1
Pages 12, 43
Waste & Circularity
Diverting non-food waste from landfill through increased waste reduction, reuse and recycling in the company’s operations. Adopting circular economy principles to promote product and packaging
sustainability, including reducing unnecessary materials; increasing recyclability, reusability and compostability; and supporting infrastructure growth that enables circularity. Providing recycling information
to customers.
2
Pages 12, 42, 45
Water
Reducing water use, increasing water reuse and managing water discharge quality across the company’s operations to protect local water sources.
3
Page 51
Governance
Topic Definition
Tier
Location
Animal Welfare
Advancing the humane treatment of animals in our supply chain by requiring suppliers to adhere to stated policies and expectations and encouraging improvements in protein production practices. Offering
a range of alternative proteins and product choices.
3
Page 65
Business Ethics
& Compliance
Operating in an ethical manner and in compliance with applicable regulations, including anti-corruption, anti-bribery and anti-competitive practices. Maintaining and enforcing policies and operating
procedures to protect associates, customers, communities and the environment.
2
Page 54
Corporate Governance
Implementing and maintaining strong governance practices that include checks and balances and enable the company’s leadership team and Board of Directors to have appropriate control and oversight of
key topics. Establishing and disclosing processes to integrate ESG priorities into overall corporate governance practices.
2
Page 53
Data Privacy
& Cybersecurity
Promoting data privacy and security for associates, customers and suppliers, and implementing controls to prevent, detect and respond to security incidents or data breaches. Ensuring the ethical use of
data and responsible use of technology across all aspects of the business and value chain.
1
Page 57
Human Rights
Respecting human rights in the company’s operations and supply chain, including risks of forced labor, migrant labor, child labor, health and safety, discrimination, harassment, abuse, working hours and
wages. Considering Indigenous people and land rights that may be affected by food and non-food production in the supply chain.
3
Page 62
Marketing Practices
& Product Labeling
Providing clear, fact-based and transparent nutrition labeling, including information on GMOs, geographic origin and more for items sold. Working with suppliers to ensure product attributes are truthfully
and responsibly communicated to customers in stores, online and through advertising.
3
Page 58
Public Policy Practices
Actively participating in forming and shaping federal, state and local public policy on issues that affect the company’s business operations.
3
Page 58
Responsible Supply Chain
& Sourcing
Promoting responsible sourcing and procurement practices that consider ESG-related risks and opportunities, including supplier inclusion and other social and environmental topics. Holding suppliers
accountable for established policies, expectations and goals. Working to improve the traceability of products throughout the supply chain, especially for high-impact commodities. Optimizing digital
capabilities to improve supply chain processes.
1
Page 60
People
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Introduction
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Appendix
Section
Description
Link to Content
Governance
Describe the board’s oversight of climate-related risks and opportunities
2024 ESG Report (Climate Impact, Corporate Governance)
CDP C.04 Governance
Describe management’s role in assessing and managing climate-related risks and opportunities
2024 ESG Report (Climate Impact, Corporate Governance)
CDP C.04 Governance
Strategy
Describe the climate-related risks and opportunities the organization has identified over the short,
medium, and long term
2024 ESG Report (Climate Impact)
Kroger Annual Report (Managing Climate Impacts, Risk Factors)
CDP C.03 Disclosure of Risks and Opportunities
Describe the impact of climate-related risks and opportunities on the organization’s businesses,
strategy, and financial planning
2024 ESG Report (Climate Impact)
Kroger Annual Report (Managing Climate Impacts, Risk Factors)
CDP C.03 Disclosure of Risks and Opportunities, C.05 Business Strategy
Describe the resilience of the organization’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario
2024 ESG Report (Climate Impact)
Kroger Annual Report (Managing Climate Impacts, Risk Factors)
CDP C.03 Disclosure of Risks and Opportunities, C.05 Business Strategy
Risk Management
Describe the organization’s processes for identifying and assessing climate-related risks
2024 ESG Report (Climate Change Resilience)
CDP C.03 Disclosure of Risks and Opportunities
Describe the organization’s processes for managing climate-related risks
2024 ESG Report (Climate Change Resilience)
CDP C.03 Disclosure of Risks and Opportunities
Describe how processes for identifying, assessing and managing climate-related risks are integrated
into the organization’s overall risk management
2024 ESG Report (Climate Impact, Material Topics)
Kroger Annual Report (Managing Climate Impacts, Risk Factors)
CDP C.03 Disclosure of Risks and Opportunities, C.05 Business Strategy
Metrics & Targets
Disclose the metrics used by the organization to assess climate-related risks and opportunities
in line with its strategy and risk management process
2024 ESG Report (Emissions-Reduction Goals, Emissions Disclosure, Appendix)
CDP C.03 Disclosure of Risks and Opportunities, C.07 Climate Change
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas emissions and the related risks
2024 ESG Report (Emissions-Reduction Goals, Appendix)
CDP C.07 Climate Change
Describe the targets used by the organization to manage climate-related risks and opportunities
and performance against targets
GHG Reduction Goal
GHG Reduction Goal Roadmap
2024 ESG Report (Emissions-Reduction Goals, Managing Food Waste, Waste & Circularity, No-Deforestation Goal,
Packaging Sustainability)
CDP C.07 Climate Change
No-Deforestation Commitment:
Our Brands
Sustainable Packaging Goals
Task Force on Climate-related
Financial Disclosures
(
TCFD
)
Index
Below we provide references to where our reporting responds to the TCFD recommended disclosures.
We include links to the relevant content in this ESG Report, our Annual Report, our response to the
CDP Climate questionnaire and other resources.
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Appendix
Topic
Accounting Metric
Unit of Measure
Company Response
Fleet Fuel Management
Fleet fuel consumed, percentage renewable
Gigajoules (GJ),
Percentage (%)
3,698,625 GJ; 0%
Air Emissions from Refrigeration
Gross global Scope 1 emissions from refrigerants
Metric tons (t) CO
2
e
2,288,734
Percentage of refrigerants consumed with zero ozone-depleting potential (ODP)
Percentage (%) by weight
92% of refrigerants consumed in Kroger’s retail stores are zero-ODP
Average refrigerant emissions rate
Percentage (%)
The average leak rate for all commercial refrigeration and HVAC systems in Kroger’s
supermarkets was 11.4% in 2023
Energy Management
(1) Operational energy consumed, (2) percentage grid electricity,
(3) percentage renewable
Gigajoules (GJ),
Percentage (%)
(1) 42,369,820 GJ; (2) 57%; (3) 1%
Food Waste Management
Amount of food waste generated, percentage diverted from the waste stream
Metric tons (t),
Percentage (%)
238,398 MT, 51% (for retail stores)
Data Security
(1) Number of data breaches, (2) percentage involving personally identifiable
information (PII), (3) number of customers affected
Number, Percentage (%)
(1) Zero; (2) 0%; (3) Zero
Description of approach to identifying and addressing data security risks
n/a
See Privacy & Cybersecurity section
Food Safety
High-risk food safety violation rate
Rate
Average of 1.24 critical violations per audit in 2023
(1) Number of recalls, (2) number of units recalled, (3) percentage of units recalled
that are private-label products
Number, Percentage (%)
There were zero recalls for Kroger-manufactured
Our Brands
products;
see Recall Management section for additional discussion
Product Health & Nutrition
Revenue from products labeled and/or marketed to promote health and
nutrition attributes
Reporting currency
We endeavor to disclose this information in the future
Discussion of the process to identify and manage products and ingredients related to
nutritional and health concerns among consumers
n/a
See Health & Nutrition section
Product Labeling & Marketing
Number of incidents of non-compliance with industry or regulatory labeling and/or
marketing codes
Number
Zero
Total amount of monetary losses as a result of legal proceedings associated with
marketing and/or labeling practices
Reporting currency
We do not report this publicly
Revenue from products labeled as (1) containing GMOs and (2) non-GMO
Reporting currency
We endeavor to disclose this information in the future
Sustainability Accounting
Standards Board
(
SASB
)
Index
Below we provide additional specific disclosures and references to where our reporting aligns
with the SASB Sustainability Accounting Standard for Food Retailers & Distributors.
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Topic
Accounting Metric
Unit of Measure
Company Response
Labor Practices
(1) Average hourly wage and (2) percentage of in-store and distribution center
employees earning minimum wage, by region
Reporting currency,
Percentage (%)
(1) Average hourly wage is $19; (2) We do not report this publicly
Percentage of active workforce covered under collective bargaining agreement
Percentage (%)
64% of associates are covered by collective bargaining agreements
(1) Number of work stoppages and (2) total days idle
Number, Days idle
(1) Zero work stoppages; (2) Zero days idle
Total amount of monetary losses as a result of legal proceedings associated with:
(1) labor law violations and (2) employment discrimination
Reporting currency
We do not report this publicly
Management of Environmental &
Social Impacts in the Supply Chain
Revenue from products third-party certified to environmental or social
sustainability sourcing standard
Reporting currency
We endeavor to disclose this information in the future
Percentage of revenue from (1) eggs that originated from a cage-free environment
and (2) pork produced without the use of gestation crate
Percentage (%) by revenue
(1) 51.9%; (2) Revenue sales are not currently able to be tracked (though we do track volume of
pork sourced)
Discussion of strategy to manage environmental and social risks within the supply
chain, including animal welfare
n/a
See
Thriving Together
Strategy and Responsible Supply Chain & Sourcing sections
Discussion of strategies to reduce the environmental impact of packaging
n/a
See
Packaging Sustainability
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Appendix
2023 Supplemental Data Tables
Energy & Emissions
Energy Consumption
1
Amount
Unit
Amount
Unit
Change vs. 2022
Total fuel consumed
5,029,544
MWh
1.81E+07
GJ
3%
Stationary sources (natural gas,
propane, fuel, oil)
3,508,707
MWh
1.26E+07
GJ
10%
Mobile sources (diesel, gasoline,
liquefied petroleum gas, jet fuel)
1,520,837
MWh
5.48E+06
GJ
-10%
Renewable fuel
–
MWh
–
GJ
–
Total electricity consumed
6,739,850
MWh
2.43E+07
GJ
-7%
Renewable electricity
2
97,513
MWh
3.51E+05
GJ
-74%
Total energy consumed
11,769,394
MWh
4.24E+07
GJ
-3%
1.
This data reflects the vast majority of Kroger’s operations, with a few exceptions
2.
This data reflects renewable electricity consumed as a result of renewable power generated at our facilities or purchased directly from our utility providers. In deregulated
energy markets where our utility provider can provide power content labels for grid electricity, we captured this information as utility-specific emissions factors (which are
reflected in market-based Scope 2 emissions). In 2023, the amount of renewable energy purchased from utility providers declined due to rising and unfavorable costs in
certain markets. We are adding renewable power in other markets in 2024
Health & Safety
Metric
Associates
Contractors
Injury rate (OSHA injuries/100 full-time employees (FTE))
4
3.03
3.70
Lost day rate (OSHA lost time rate/100 FTE)
5
2.35
2.60
4.
Injury rate includes injuries greater than minor injuries (first aid) per OSHA reporting requirements
5.
We classify lost days as calendar days. Lost days begin the day after the injury
Energy Intensity
3
Amount
Unit
Amount
Unit
Change vs. 2022
Energy intensity per square foot
55.16
MWh/
1,000 ft
2
1.99E+02
GJ/
1,000 ft
2
+2.6%
Normalizing factor: facility footprint
213,378
1,000 ft
2
–
–
–
3.
The energy intensity calculation reflects total energy consumed within the organization
Carbon Intensity
9
Amount
Unit
Change vs. 2022
Total corporate carbon emissions intensity per square foot
23.82
tCO
2
e/
1,000 ft
2
+9.0%
Normalizing factor: facility footprint
213,378
1,000 ft
2
–
9.
This calculation reflects market-based Scope 2 emissions
Carbon Emissions
6,7,8
Amount
Unit
Change vs. 2022
Direct (Scope 1) emissions
2,288,734
tCO
2
e
-2.0%
Stationary
552,154
tCO
2
e
-4.5%
Mobile
371,421
tCO
2
e
-11.6%
Fugitive
1,365,158
tCO
2
e
2.1%
Indirect (Scope 2) emissions (location-based)
2,739,997
tCO
2
e
1.6%
Indirect (Scope 2) emissions (market-based)
2,792,879
tCO
2
e
9.1%
Total corporate (Scope 1 and 2) emissions (location-based)
5,028,731
tCO
2
e
-0.1%
Total corporate (Scope 1 and 2) emissions (market-based)
5,081,613
tCO
2
e
3.8%
Indirect (Scope 3) emissions (partial)
1,909,850
tCO
2
e
-2.9%
6.
We used the GHG Protocol Corporate Accounting Standard, the Operational Control approach and Global Warming Potentials from the IPCC
Fifth Assessment Report (AR5 – 100 year). The base year for our footprint is 2006, when we first started measuring it
7.
Scope 1 and 2 emissions reflect CO
2
, CH
4
, N
2
O and HFC gases. Details are disclosed in our CDP Climate response. Offsets were not used in our calculations
8.
Scope 3 emissions reflect the following categories: fuel- and energy-related activities (not included in Scope 1 or 2 emissions), waste generated in operations, business
travel, employee commuting, processing of sold products and investments
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Appendix
This ESG Report does not cover all information about our
business, and inclusion of information herein is not an indication
that the subject or information is material to Kroger’s business
or operating results for purposes of U.S. securities laws and
regulations. Statements other than statements of historical or
current facts, including statements and images about our ESG
targets, goals, aspirations, commitments and programs, and
other business plans, initiatives, and objectives are forward-
looking statements and are based on Kroger’s management’s
current assumptions and expectations. These statements
are typically accompanied by the words “aim,” “ambition,”
“anticipate,” “approach,” “believe,” “commitment/committed,”
“continue,” “estimate,” “expect,” “expectation,” “framework,”
“future,” “goals,” “may,” “plan,” “strategy,” “strive,” “targets,”
“will,” or other similar words. All such statements are intended
to enjoy the protection of the safe harbor for forward-
looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. Our actual future
results, including the achievement of our targets, goals, or
commitments, could differ materially from our projected results
as the result of a variety of factors, including, but not limited to,
changes in circumstances, assumptions not being realized, or
other risks, uncertainties, and factors, many of which are outside
of our control. Such risks, uncertainties and factors include the
risk factors discussed in Item 1A of our most recent Report on
Form 10-K and in subsequent filings with the Securities and
Exchange Commission (SEC); they also include the challenges,
assumptions and dependencies identified in this report.
We urge you to consider all of the risks, uncertainties, and
factors identified above or discussed in this report carefully in
evaluating the forward-looking statements herein. Kroger cannot
assure you that the results reflected or implied by any forward-
looking statement will be realized or, even if substantially
realized, that those results will have the forecasted or expected
consequences and effects. Unless expressly stated otherwise,
the forward-looking statements in this report are made as of the
effective date identified herein, and we undertake no obligation
to update or revise these forward-looking statements to reflect
subsequent events or circumstances. Standards of measurement
and performance made in reference to the goals, aspirations,
and objectives referred to in this report are developing and
based on protocols, processes, and assumptions that continue
to evolve and are subject to change in the future, and no
assurances can be given that any plan, initiative, projection, goal,
commitment, expectation, or prospect set forth in this report
can or will be achieved.
Forward-Looking Statements
People
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