Albertsons cites big sustainability strides in its 2023 ESG Report

From lower greenhouse gas emissions to more efficient energy use to millions of meal donations, food and drug retailer Albertsons Cos. highlighted a range of achievements in its 2023 Environmental, Social and Governance (ESG) Report.

Boise, Idaho-based Albertsons said this year’s report, released Monday, reflects the company’s 16-month-old Recipe for Change ESG framework, which set strategies and targets across the “pillars” of “Planet, People, Product and Community.” The plan deepens Albertsons’ sustainability commitments in such areas as reducing carbon emissions, halting the flow of food waste to landfills, cutting down on plastic waste and unnecessary packaging, fighting food insecurity, and cultivating a diverse and inclusive workforce,

For the Planet pillar, Albertsons noted that it slashed carbon emissions from operations by 21% between 2019 and 2022. Last year, the retailer completed over 85 refrigeration projects to shift stores to scale back on refrigerants with global-warming potential.

Energy demand was reduced via more than 1,100 energy-efficiency projects across operations in 2022. Albertsons said projects included installing LED lighting retrofits, doors on refrigerated cases and building management systems, among other efforts.

The company, too, pinched its waste stream by recycling more than 850 million pounds of cardboard and 27 million pounds of plastic film and bags last year.

Key progress was made in waste reduction under the Product pillar as well. For example, Albertsons reported diverting over 321 million pounds of food and trimmings from landfills through composting, innovative upcycling solutions and anaerobic digestion, which the company said transforms food waste into a rich soil supplement. To reduce unsold food, the retailer also enlisted artificial intelligence across nearly all stores to sharpen order and production accuracy to provide the correct amount and assortment of products for customers.

In addition, Albertsons promoted customer recycling of product packaging by reaching its goal of offering standardized recycling communications on over 7,000 own-brand products through How2Recycle labels and QR codes.

“Our latest report further solidifies our long-standing commitment to support the thousands of communities we serve and the planet we share,” Albertsons Cos. CEO Vivek Sankaran said in a statement. “In 2022, we made meaningful progress against our commitments, further aligning what we do with who we are as a company. We will continue to challenge ourselves to lead positive change as we build upon this momentum to create better lives, vibrant neighborhoods and a healthier planet.”

Albertsons’ 2023 ESG Report said efforts to squelch food insecurity included enabling 254 million meals through store food donations and Albertsons Cos. Foundation’s Nourishing Neighbors program, which has totaled more than 950 million meals since 2019. The latter raised over $40 million via Nourishing Neighbors, enabling 188 million meals in 2022. The company noted that, also under the Community pillar, it improved access to nutritious food enabling Supplemental Nutrition Assistance Program (SNAP) participants to pay using the electronic benefits transfer (EBT) cards when buying groceries online.

And for the People pillar of Recipe for Change, Albertsons said it trained more than 15,000 leaders through “Leading with Inclusion” workshops, aimed at raising awareness of bias and providing tools to foster a more inclusive work environment. The company, too, said it introduced an inclusion index that allows associates to share their perspectives and promotes a culture in which employees are treated with “courtesy, dignity and respect.” Similarly, Albertsons launched its eighth associate resource group, DiverseABILITY, which focuses on providing awareness, celebration and opportunities for people with diverse abilities, their caretakers and allies.

“The progress we saw in 2022 would not have been possible without the passion and dedication of our associates. Because of them, we made meaningful changes that improve business performance while reducing our emissions, building belonging with our team members, lessening food waste going to landfill and addressing food insecurity,” according to Suzanne Long, chief sustainability and transformation officer at Albertsons Cos. “In the year ahead, we plan to expand our engagement for Recipe for Change, including partnering with our vendors to drive industry change and increasing customer involvement in achieving our goals. By bringing others along on our journey, we can make change a reality.”

Overall, Albertsons Cos. operates 2,272 food and drug stores, including 1,726 pharmacies, under 24 retail banners in 34 states and the District of Columbia. The company’s operations also include 401 fuel stations, 22 distribution centers and 19 manufacturing facilities.