Kroger

Kroger has expanded its climate-related reporting to begin aligning with TCFD, but it is unclear whether its scenario analysis is TCFD aligned or includes animal agricultural supply chains or protein diversification. The company conducted a physical climate risk assessment modelling three scenarios: median under 2°C, 2°C to 4°C and over 4°C. While Kroger plans to expand its analysis to include parts of its supply chain, particularly Scope 3 GHG emissions, there is no specific mention of animal agriculture or protein diversification.

Kroger does not disclose a breakdown of its Scope 3 emissions derived from animal agriculture. However, the company's second largest source of Scope 3 emissions in 2021 (27.2%) is Purchased Goods & Services from the Forest, Land & Agriculture (FLAG) sector. Upon calculation, approximately 96% of the company's total emissions are attributed to Scope 3.

Kroger has not set a 1.5°C SBTi-approved Scope 3 target covering animal agriculture supply chains in line with FLAG guidance. The company cites difficulties in calculating FLAG emissions as an emerging science and challenges in measuring emissions reduction in the near term in regards to having not yet sought SBTi approval for a target. The company discloses that the requirements of the SBTi framework for validated target-setting are challenging for its business to achieve in a way that is sustainable and enables future growth. Kroger’s current goal is to reduce greenhouse gas emissions from its operations by 30% by 2030, focusing on Scope 1 and 2 emissions.

Kroger does not provide quantitative data related to the emissions mitigation potential and/or financial opportunity of protein diversification. However, the company qualitatively recognises in its climate disclosure that plant-based products as alternatives to traditional animal-based proteins and ingredients can reduce the carbon emissions and other environmental impacts of animal-based products. The company also recognises the financial opportunity in plant-based products, with sales of popular products remaining strong, although it identifies changing consumer preferences as decreasing sales in certain plant-based categories.

Kroger has not yet set a public protein diversification target integrated into its climate transition plan. While the company offers plant-based products for consumers and acknowledges their potential environmental benefits, there is no mention of a formal target or strategy within its climate disclosure.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target.

Kroger does not have a protein diversification target, however, the company reports data on its plant-based sales, reporting ""Our Brands"" plant-based sales declined by 10% between 2022 and 2023, attributed to shifting customer preferences.

Kroger reports data on plant-based product offerings and sales on an annual basis. In 2022, the company had 215 plant-based products across nearly 60 merchandising categories, with sales increasing by 7% compared to the previous year. In 2023, the number of plant-based products decreased to 175, spanning 50 categories, while sales declined by 10%, primarily due to shifting customer preferences.

The company does not have board-level incentivisation mechanisms linked to progress against emissions reduction or protein diversification goals. The company incorporated an ESG metric into its executive compensation structure in 2022, but this is limited to progress on diversity and inclusion. However, for certain individuals within Kroger, such as those in the sustainability team, their annual performance assessment includes objectives related to managing the company's ESG strategy, commitments and performance. For example, leading climate risk assessment, setting new goals, implementing energy efficiency measures and tracking and reporting on progress.

46% of Kroger's board members have sustainability experience.

There is no evidence that the company's board possesses technical expertise in health/nutrition. Although one of the company's board members serves on the board of UCHealth, it is unclear from the company's disclosure whether their thematic expertise covers healthy diets. Additionally, there is no clear evidence of the board's Public Responsibilities Committee, which oversees progress on its health and nutrition programmes, having technical expertise in the topic.

The company does not disclose a list of its lobbying actions, but does disclose a list of policy positions related to its food business. The company discloses its positions on climate change, deforestation, sustainable seafood, and animal welfare. Although the company states that it engages strategically at the state, regional and local levels to provide Kroger's point of view as a grocery retailer and producer to advocate for policies and regulations that are feasible for the company, examples beyond increased engagement on Extended Producer Responsibility (EPR) packaging legislation this year are not disclosed.

The company does not disclose its specific direct lobbying actions as related to its food business, making it unclear whether these activities are aligned with positive climate or nutrition outcomes. Although, the company makes a high level statement that it does not advocate for policies, laws or regulations that are in conflict with Kroger's stated Climate plan objectives. Kroger discloses that its government relations team reports to the Global Vice President of Corporate Affairs, who also serves as Chief Sustainability Officer, to ensure consistency between the company's advocacy positions and stated sustainability goals.

The company discloses a dedicated list of trade associations to which it provides support in its single US market. The company is a member of 9 trade associations, including The Food Industry Association and the International Dairy Foods Association.

Kroger does not disclose an assessment of whether its indirect lobbying actions, including trade association memberships, are aligned and/or misaligned with positive climate and/or nutrition outcomes.

There is no evidence that the company has made a public commitment to Just Transition principles.

The company has not yet made a public commitment to retain, reskill, redeploy and/or compensate workers affected by its emissions reduction efforts.

Kroger provides evidence of supporting animal agriculture suppliers to transition to more sustainable practices in small scale projects. In 2023, the company continued supporting fishery improvement projects (FIPs) to help fisheries achieve Marine Stewardship Council (MSC) certification, which the company uses to verify responsible and sustainable seafood sourcing in line with its Sustainable Seafood Policy. Its Seafood department assortment included wild-caught seafood from 35 comprehensive FIPs this year, however, the scale of these projects is unclear.

Kroger has not developed a public Just Transition strategy.

There is evidence that the company engages with social actors affected by its emissions reduction efforts, but this is not incorporated into a Just Transition strategy. The company is developing a new goal to promote more sustainable agricultural practices in its fresh produce supply chain, reducing pesticide exposure for farmworkers and nature-based impacts from food production. With the Sustainable Food Group, the company surveyed a sample of its suppliers, representing about 40% of Kroger’s fresh produce spend, on topics like pest management, soil health, biodiversity and water conservation. The survey indicated that suppliers would appreciate efforts to streamline growing requirements across retailers and other food buyers in a pre-competitive manner.

The company has not set a public Just Transition strategy and so has no associated KPIs.

The company has not set a public Just Transition strategy and so has no associated KPIs.

Kroger launched external brand plant-based products in its largest US market in the past year. These include Barilla Vegan Pesto, Beyond Sausage, Meati mycelium based steaks and cutlets and Califa Farms Sugar Cookie Almond Creamer.

There is no evidence that Kroger has allocated resource to improve the performance of alternative protein products in the past year.

Kroger does not have a minimum health and nutrition requirement for its alternative protein source portfolio aligned with a government-endorsed nutrient profiling system. Although the company is encouraging healthier choices for consumers through its OptUP system, which provides nutrition ratings for products and personalised scores based on the company's own rating methodology, there is no evidence that it has set a minimum health and nutrition threshold for products.

There is no evidence that Kroger is reformulating alternative protein products to improve nutrition attributes.

There is no evidence that Kroger is reformulating alternative protein products to improve sustainability attributes.

Kroger has committed to marketing and merchandising strategies related to alternative proteins in its largest US market. The company launched the ''Power of Plant-Based'' campaign, using special promotions to highlight own brand Simple Truth and external brand plant-based products in store. To encourage customer engagement, food truck events were held in seven regions across the US, offering free samples and coupons to increase consumer engagement with plant-based products. The initiative also featured at the 2023 Kroger Wellness Festival to promote the health and environmental benefits of plant-based foods.

Kroger is marketing and merchandising alternative protein products in its largest US market. The company's ''Power of Plant-based'' campaign leverages special price promotions in store and a food truck at events to engage consumers on the health and environmental benefits of plant-based options with free tasting samples and coupons. Additionally, the company promotes its plant-based products through recipes on its YouTube channel, and offers discount coupons and a meatless meal promotional bundle for customers on its website. The company featured in external press this year, promoting the 2025 food trend prediction of greater plant-based protein incorporation (beans, lentils, hemp seeds etc) into daily diets, and methods to harness the category's growth opportunity, such as promoting the health benefits of plant-based meat to more mature generations, or adding familiar seasonings to encourage adoption.

There is no evidence that Kroger is working to ensure its alternative protein source products are accessible and affordable in its largest markets. Although, the company is committed to making fresh food affordable and accessible for consumers with its Fresh For Everyone promise and has initiatives such as enabling payments through Electronic Benefit Transfers. The company invested $500 million in lower prices in 2023, saving customers $1.5 billion through coupons. $5 billion was invested in price reductions since 2003, however, it is unclear if alternative protein products are included in these efforts.

Kroger has conducted consumer research investigating trends within the alternative protein sources sector. The company has segmented sales of plant-based meats by consumer type, finding that sales have not decreased across all categories and there is an opportunity to reach a more mature generation that choose products based on health motivations. A consumer survey conducted by a unit of the company identified that reviews, samples, and in-store promotions could encourage consumers to trial plant-based products. The company also finds that promotion of familiarly seasoned plant-based meat options, education on effective preparation methods, product placement near traditional meats and better signage could stimulate product interest.

Kroger has used consumer research relating to healthy diets to inform its marketing and merchandising strategy, however, it is unclear if this includes alternative protein sources. In consumer research conducted by the company in 2023 on sustainability and social impact topics, more than two thirds of respondents identified health and nutrition as important to them. Although, it is unclear if these findings informed the company's marketing of alternative protein sources.