2020 CORPORATE SOCIAL RESPONSIBILITY REPORT - Ed Montes, US Foods Lift Operator Bensenville, IL, Distribution Facility
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2020 CORPORATE SOCIAL RESPONSIBILITY REPORT Ed Montes, US Foods Lift Operator Bensenville, IL, Distribution Facility
2 TABLE OF CONTENTS A LETTER FROM OUR CEO 3 OUR RESPONSE TO COVID-19 4 ABOUT US FOODS® 6 CSR AT US FOODS 7 REPORT HIGHLIGHTS 8 PEOPLE 9 PLANET 23 PRODUCTS 29 CSR INDEX 40 < >
3 A LETTER FROM OUR CEO Dear Stakeholders, PLANET Corporate Social Responsibility (CSR) requires By applying a continuous improvement mindset to organizations do more than care about issues our sustainability efforts, we consistently identify that affect our world — they must take meaningful opportunities across our business to improve fleet action to make the world a better place. Although efficiency and reduce energy use. In 2020, we 2020 presented many challenges, it also provided continued to leverage compressed natural gas (CNG) us with opportunities to make positive strides vehicles in our fleet and participated in an electric against our CSR commitments. truck pilot. We generated 13 million kilowatt hours in In this, our second expanded CSR Report, electricity from our solar installations and improved you will have the opportunity to review the waste reduction efforts in our facilities through both momentum we are creating across our three key recycling and product donation initiatives. CSR pillars: People, Planet and Products. While there is more work to be done, we are proud of PRODUCTS the progress we have made. In 2020, we expanded our Serve Good® portfolio to more than 900 items that are responsibly sourced or PEOPLE contribute to waste reduction and also meet strict We are committed to making a positive packaging standards. In addition, we reached our difference in the lives of our associates and 2020 Responsibly Sourced Seafood commitment, in the communities we serve. In 2020, this and today, 100% of the products in our Harbor Banks® meant protecting our associates through seafood portfolio — the largest US Foods® portfolio comprehensive COVID-19 safety protocols. of Exclusive Brand seafood products — now meet We also continued our commitment to diversity either Progress Check® or Serve Good standards. and inclusion by expanding our Employee While we faced many challenges in 2020, our Resource Groups; and in June, more than 1,000 associates and customers demonstrated a associates participated in an Allyship and resilience and determination that inspired us all. Anti-Racism Workshop. In our communities, We look to the future with optimism and a we donated approximately $43 million of food continued commitment to the important work and supplies to charitable organizations to help of corporate social responsibility. those facing hunger. Pietro Satriano Chairman and Chief Executive Officer
4 OUR RESPONSE TO COVID-19 HELPING OUR CUSTOMERS MAKE IT OUR RESPONSE TO COVID-19 COVID-19 significantly disrupted the business While the COVID-19 pandemic created operations of our restaurant, hospitality and unprecedented challenges for our industry education customers. In response to these in 2020, it also enabled us to leverage our challenges, we quickly provided new tools and strengths to support our associates, resources specifically designed to help them customers and communities in meaningful adapt to changes in the industry. and innovative ways. In March 2020, we launched our “Make It Now” PRIORITIZING THE HEALTH AND SAFETY resource hub, a new platform offering free OF OUR ASSOCIATES AND CUSTOMERS webinars, virtual one-on-one consultations with Throughout the pandemic, the health and our Restaurant Operations Consultants and safety of our associates, customers and Food Fanatics® Chefs, and a library of support communities has remained our top priority. materials on topics such as how to navigate the Early in 2020, we mobilized a cross-functional CARES Act and access financial resources. The team dedicated to leading our ongoing hub also contains best practices for calculating COVID-19 response efforts. The response cash flow, ramping up takeout and delivery team continues to closely monitor the evolving operations and creating engaging social media pandemic and develop action plans to meet content to stay connected with customers both associate and customer needs. Drawing during the pandemic. upon many resources, including the Centers for Disease Control and Prevention (CDC) “Our ‘We Help You Make It®’ approach and relevant federal, state and local public has always been about helping health agencies, the team makes informed, operators succeed — and never has that fact-based decisions. been more important than it is today. To learn more about our COVID-19 safety I’ve heard many customers say our efforts, we invite you to visit page 18 of this report. tagline is more than just a tagline during these times; it’s a lifeline.” Jim Osborne, Senior Vice President of Customer Strategy and Innovation at US Foods®
5 OUR RESPONSE TO COVID-19 To further supplement these resources, we grocers and consumer packaged goods introduced several playbooks and guides on brands, we created new opportunities for our the site, including the US Foods® Restaurant distribution workforce and continued to play Reopening Blueprint and the Operating Safely a vital role in supporting the nation’s food Guide, dedicated to helping customers reopen supply by selling much-needed products to and recover safely. Other resources include retailers across the country as they struggled the US Foods Ghost Kitchen Playbook, which to maintain inventory. is designed to guide operators through the SUPPORTING OUR COMMUNITIES IN NEED process of adding a new, delivery-only revenue Given the impacts of COVID-19, many food stream to their operations. banks struggled to meet the increasing needs As our customers continue to modify their of their communities as more Americans business models in response to the pandemic, required support. Throughout 2020, we we have leveraged our product innovation donated approximately $43 million of food and efforts to support them with special editions supplies for local food banks and charitable of our Scoop™ Magazine, aimed at helping restaurateurs meet immediate and emerging organizations across the country. In addition to ongoing product donations, US FOODS ® dining trends, such as off-premise dining. we collaborated with restaurants across the DISTRIBUTED MORE THAN Featured products, including individually portioned and prepackaged items for DIY country to donate products and logistics 20,000 FREE REOPENING support to meal-packing events that provided meal kits, family-style takeout menu items, much-needed relief to foodservice workers, KITS TO INDEPENDENT and tamper-evident packaging and sanitation items were critical in helping operators as they first responders and healthcare workers. RESTAURANT OWNERS. stood up or optimized takeout and delivery We invite you to learn more about our hunger The kits provided must-have supplies, operations. relief efforts on page 20 of this report. such as masks and safety guidance LEVERAGING SUPPLY CHAIN RESOURCES posters, as well as resource guides When the pandemic created a surge of retail to navigate state and local grocery demand earlier in 2020, we leveraged COVID-19 reopening requirements our supply chain resources to support the and create a safer environment retail industry and get food onto shelves faster. for staff and customers. Through the development of key partnerships across national grocery store chains, wholesale
6 ABOUT US FOODS® $22.9B IN REVENUE 26,000 ASSOCIATES US Foods® (NYSE: USFD) is one of America’s great food companies and a 150 YEARS IN BUSINESS 3,000 SALES ASSOCIATES leading foodservice distributor, serving restaurants as well as healthcare, hospitality, governmental and educational institutions. Through a broad and innovative food offering 300,000 CUSTOMERS 70 BROADLINE LOCATIONS and a comprehensive suite of e-commerce, technology and business solutions, we help chefs, restaurants and foodservice 400,000 PRODUCTS 80 CHEF’STORE® LOCATIONS operators succeed. Our success is powered by our talented US Foods associates who come to work every day with one goal in mind: to help our customers Make It. 6,000 SUPPLIERS 6,500 TRUCKS IN OUR FLEET Visit usfoods.com to learn more.
7 CSR AT US FOODS® GOVERNING CSR AT US FOODS ABOUT THIS REPORT CSR AT US FOODS US Foods CSR efforts are managed by a This report reflects our CSR performance OUR APPROACH TO CORPORATE cross-functional CSR Working Group that during 2020 unless noted otherwise. As we’ve noted SOCIAL RESPONSIBILITY (CSR) meets regularly, led by our Executive Vice throughout the report, key performance figures As a leading foodservice distributor, we know President, General Counsel and Chief may also include the Food Group ofCompanies, we have an opportunity to positively impact our Compliance Officer. The Working Group which US Foods acquired in September 2019, customers, their diners, our associates and the includes leaders and subject-matter experts and Smart Foodservice Warehouse Stores, communities where we live and work. Our CSR from areas such as Supply Chain, Real which US Foods acquired in April 2020. Our platform is organized around our commitment to Estate, Merchandising, Human Resources CSR disclosures are informed by the reporting caring for people, protecting the environment and and Communications. Periodic updates frameworks and recommendations of organizations providing sustainably sourced products. on the company’s CSR initiatives and such as the Global Reporting Initiative (GRI) and In this report, we’re pleased to share progress accomplishments are provided to the Sustainability Accounting Standards Board (SASB). highlights for each of our key focus areas: People, Nominating and Corporate Governance An index of these disclosures can be found in the Planet and Products. We also report environmental Committee of our Board of Directors, which appendix of this report. In 2019, we published our data through CDP and respond to numerous oversees the progress of these efforts. first formal CSR Report and we expect to continue investor, customer, vendor and third-party to publish CSR reports annually. disclosure requests. Information regarding our efforts and our most recent CDP response can be found at usfoods.com/csr.
8 REPORT HIGHLIGHTS 2020 CSR REPORT HIGHLIGHTS PEOPLE PLANET PRODUCTS ~$43M IN FOOD AND SUPPLIES DONATED 6.9% REDUCTION SINCE 2015 IN GALLONS OF FUEL USED PER CASE DELIVERED2,3 900+ SERVE GOOD® AND PROGRESS CHECK® PRODUCTS $1B+ SPENT WITH SMALL BUSINESSES ACROSS THE U.S.1 1,800+ 7.3% REDUCTION IN SCOPE 1 AND SCOPE 2 270+ RESPONSIBLE DISPOSABLES PRODUCTS EMISSIONS SINCE 20153,4,5 $385M SPENT WITH 435+ 13M KWH OF ELECTRICITY GENERATED FROM 6 100% OF HARBOR BANKS® SEAFOOD PRODUCTS MEET DIVERSE SUPPLIERS1 SOLAR INSTALLATIONS EACH YEAR PROGRESS CHECK OR SERVE GOOD STANDARDS $650K IN SCHOLARSHIP FUNDING OFFERED SINCE 2017 1M+ SQUARE FEET OF LEED- CERTIFIED BUILDINGS 100% OF PALM OIL USED IN OUR EXCLUSIVE BRANDS IS CERTIFIED SUSTAINABLE ~1,000 WOMEN HAVE PARTICIPATED IN WFF SINCE 2010 200M KWH CUMULATIVE ENERGY SAVINGS SINCE 2015 200 LEADERS ARE TRAINED TO FACILITATE ALLYSHIP AND ANTI-RACISM WORKSHOPS 54 CNG TRUCKS EMIT 22–29% FEWER GREENHOUSE GAS EMISSIONS 1,000+ EXCLUSIVE BRAND PRODUCTS MEET OUR UNPRONOUNCEABLES LIST™ INITIATIVE Figures include trade and indirect spend with Tier I suppliers. 2Broadline business only. 3Includes the Food Group of Companies, acquired in September 2019, and reflects transportation inefficiencies with reduced volumes caused by the COVID-19 pandemic. 1 Emissions intensity measured as pounds of CO2e per case delivered. 5Includes Smart Foodservice Warehouse Stores, acquired in April 2020. 4
PEOPLE | PLANET | PRODUCTS PEOPLE At US Foods®, we strive to make a positive difference in the lives of our associates and in the communities we serve. This means making associate health and safety a top priority and creating an inclusive and dynamic workplace where our associates can grow and thrive. It also includes our commitment to philanthropy and volunteerism activities that help strengthen our local communities.
10 PEOPLE | PLANET | PRODUCTS “Our Cultural Beliefs guide how we live CREATING AN INCLUSIVE and lead at US Foods and are vital in AND DYNAMIC WORKPLACE ensuring that our team is positioned OUR CULTURAL BELIEFS for success. Doing our best for our At US Foods®, we continually strive to be and do our best so we can help our customers, customers, communities and each other associates and communities Make It. The means consistently bringing our Cultural foundation of these efforts is our Cultural Beliefs to life in everything we do.” Beliefs, which guide how we interact with each other and our customers: David Works, • Expect Excellence: I challenge myself Executive Vice President, and others to delight customers every time Chief Human Resources Officer • Stop Waste: I take action every day to eliminate waste • Team Up: I engage the right people, in the SPOTLIGHT ON right way, at the right time OUR CULTURE OUR CULTURAL BELIEFS IN ACTION • Talk Straight: I seek the truth and exchange EXPECT STOP As we navigate ongoing COVID-19 challenges, objective feedback EXCELLENCE WASTE taking care of our associates and our I challenge myself and others I take action every day to delight customers every time communities continues to be a top priority for • You Matter: I care for my co-workers, enable to eliminate waste all of us at US Foods. You Matter, one of our success, and make winning fun Cultural Beliefs, reinforces our ongoing YOU commitment to taking care of each other. Our Cultural Beliefs are woven into our training, MATTER US Foods Human Resource Business Partner, I care for my co-workers, Kay Phillips-Shepard demonstrated this belief development and talent programs and serve as enable their success, and make winning fun in action during the rollout of our COVID-19 a key part of how we work together to deliver safety protocols. In addition to conducting at- on our promise to customers. work safety protocol training and support, Kay TEAM TALK personally reached out to associates to discuss UP STRAIGHT their unique living and family circumstances I engage the right people, I seek the truth and exchange in the right way, at the right time objective feedback and ways they could adopt COVID-19 safety practices inside and outside the home. The associates were appreciative of this extra support and how Kay clearly demonstrated how much they matter and how much she cares.
11 PEOPLE | PLANET | PRODUCTS TRAINING AND DEVELOPMENT Other training and development programs • Sales Readiness: Provides new Selling Investing in our people is critical to our include: Associates with tools, resources and peer success. Through training, mentoring and networking to help them succeed •E -Cademy: Provides associates with online on-the-job development, we enable our learning resources to develop a variety of • Selector Onboarding: Prepares Warehouse associates to learn and grow. Our development skills that align with the US Foods® business Selectors to be successful through training programming is dedicated to supporting strategy and Cultural Beliefs on safety, accuracy and performance associates at all levels of our organization so standards they can reach their full potential. •D isrupting Bias Training: Enables associates to identify implicit biases, understand • Leadership Foundations: Helps Sales Gateway to Leadership, for new people their impact and eliminate discriminatory Managers and Supply Chain Supervisors managers, and Aspire to Lead and Aspire to behaviors for the betterment of the company and Managers effectively lead and grow Grow, for high-potential leaders, are among their teams our signature development programs built to •S afety Leadership Training: Promotes a strengthen leadership capabilities and provide safety mindset among Operations Leaders networking opportunities with leaders across and Managers the organization. SPOTLIGHT ON VIRTUAL TRAINING RESOURCES Due to COVID-19 restrictions, in 2020 we reimagined many of our training programs to help associates continue to learn and grow 6,000+ ASSOCIATES ACCESSED ONLINE TRAINING RESOURCES IN 2020 virtually. This included moving several of our signature programs to remote learning formats and rolling out additional training resources to support associates working from home. Our new Associate Resource Hub features an online library of tools and content for navigating the remote work environment, including communication guides for virtual teams, technology training, virtual leadership webinars and more.
12 PEOPLE | PLANET | PRODUCTS ASSOCIATE ENGAGEMENT SURVEYS • Counseling to help with stress and anxiety Through our Associate Engagement Survey and • Maternity and family benefits to support the Pulse survey programs, we invite our associates entire parenthood journey, including adoption to provide important feedback that allows us to assistance implement positive changes across our company. These surveys, along with regular associate • Child and elder care management services roundtables, help us continually improve how we • Financial management and will preparation demonstrate our Cultural Beliefs and support other focus areas such as safety, manager • Healthcare support services such as virtual effectiveness and customer service. visits, expert assistance getting a second SPOTLIGHT ON US FOODS® CARES opinion, support choosing the top surgeons The US Foods Company Assistance for and hospitals across the country and healthcare Relief in Emergency Situations (CARES) concierge services 30,000 ASSOCIATE SURVEY RESPONSES SUBMITTED IN 2020 We also provide paid time off programs, an employee assistance program, an employee Fund was established to help our associates recover from natural disasters that could not be anticipated or prevented. The program stock purchase plan and tuition reimbursement. provides financial grants of up to $5,000 to In 2020, we introduced a new parental leave qualifying full-time and part-time US Foods ASSOCIATE BENEFITS policy, which provides all eligible associates, associates as determined by the CARES We are committed to providing compensation regardless of gender, two weeks of paid parental Approval Committee. and benefits that respect and reward our leave when welcoming a new child. associates for their dedication and hard work. “When we were unexpectedly forced to Our health and wellness benefits are designed evacuate our home in the middle of night, to provide flexible options to fit every stage of an associate’s career. Our comprehensive benefits 85% OF US FOODS® ASSOCIATES ENROLLED IN BENEFITS due to the California CZU Lightning Complex Fire, the US Foods CARES program was program includes a variety of medical and dental plans, plus voluntary benefits like vision or critical ENHANCED COVID-19 BENEFITS there. During our three-week displacement, illness protection. We also provide tools and To support our associates during COVID-19, the program helped us fund temporary resources to help our associates make informed we offer additional benefits, such as enhanced healthcare decisions. housing for both my family and our animals, leave policies for an associate who is ill with COVID-19 or taking care of a loved one with as well as other critical expenses. In the We are proud to offer innovative, no-cost wellness programs focused on helping COVID-19 at home. In addition, we offer free face of so much uncertainty and stress, associates with healthcare challenges, including: COVID-19 testing for associates in qualified the US Foods CARES program was truly situations to facilitate a safe return to work. • Diabetes, weight loss, smoking cessation and the lifeline we needed.” sleep management services Lynette Mezera, • Back and knee pain reduction US Foods Account Executive
13 PEOPLE | PLANET | PRODUCTS ETHICS AND COMPLIANCE TRAINING ETHICS AND COMPLIANCE A key component of our ethics and compliance ALL OF OUR ASSOCIATES RECEIVE ANNUAL CODE OF CONDUCT At US Foods®, we are committed to working program is associate training. All US Foods AWARENESS TRAINING with integrity as we engage with each other associates receive annual Code of Conduct and our partners. The cornerstone of this training and specialized training based on the REPORTING A CONCERN commitment is our Code of Conduct, a public nature of their duties and responsibilities. For At US Foods, we have established a variety affirmation that we are committed to doing the example, all US Foods associates working in of resources if an associate needs support right thing. The Code of Conduct is grounded in supply chain, shared services and information or would like to report a concern. Associates our Cultural Beliefs and the understanding that technology at our distribution centers are may report anonymously, if they choose, each of us plays an important role in operating required to complete a Human Trafficking through the US Foods Check-In Line. This with honesty and integrity. course that has been designed to help them hotline is available 24 hours a day, seven days better understand the issues of forced labor a week, with translation services if needed. This Code of Conduct sets out expectations Associates are able to anonymously report a and create awareness of their responsibility to for how we work with each other and with concern by phone (888-310-7716), through US Foods and society more broadly as it relates customers, suppliers, communities and the internet at usfoodcheckinline.com or by to human trafficking concerns. This training government officials. It also reinforces the email to compliance@usfoods.com. In addition, also informs associates about what options are importance of ethical decision-making, associates may always raise concerns with available to them to help keep our operations speaking up through the US Foods Check-In their manager, any other US Foods manager, and supply chain free from these risks. In Line and our commitment to a respectful and Human Resources or any member of the addition, our ethics and training program has inclusive workplace. US Foods Law Department. As part of our been designed to reinforce our commitment to To reinforce our commitment to a strong ethics diversity and inclusion and building a respectful no-retaliation policy, there will be no retaliation and compliance program, we have adopted workplace. against anyone who raises questions or several other policies that provide guidance concerns in good faith. and resources to our associates and set out the standards that we expect our vendors and suppliers to follow. These policies include: • Anti-Corruption Policy • Conflicts of Interest Policy • Equal Employment and Affirmative Action Policy • Prohibition Against Discrimination, Harassment and Retaliation Policy • Responsible Sourcing Policy and Supplier Code
14 PEOPLE | PLANET | PRODUCTS of US Foods executive leaders responsible for INCLUSIVE WORK ENVIRONMENT EMBRACING DIVERSITY the oversight of our initiatives. The first area of focus in our strategy is AND INCLUSION OUR DIVERSITY & INCLUSION STRATEGY creating a more inclusive work environment. At US Foods®, we believe that success and Our success relies upon a diverse and Our commitment to diversity and inclusion is innovation are only achieved when all voices dynamic workplace that fosters an equitable grounded in three strategic areas of focus and perspectives are heard and valued. environment where all associates can grow and through which we continue to work toward a We perform at our best by connecting with thrive. In 2018, we introduced an interactive more equitable future: associates, customers and communities Respectful Workplace training for associates 1. Creating a more inclusive work as part of our effort to promote respectful in ways that embrace diversity of all kinds, environment where everyone feels safe and communication and foster greater inclusion. including diversity of race, ethnicity, culture, valued and their voices matter gender identity, age, sex, disability and Employee Resource Groups experience. As a company, we are committed to 2. Increasing the diversity of our workforce US Foods company-sponsored Employee fostering an environment that is engaging and and leaders by investing in programs to build Resource Groups (ERGs) are associate-led inclusive, developing diverse talent at all career a diverse talent pipeline and accelerate the groups that strengthen networking among levels and offering products and consultative development of diverse associates colleagues, further personal and professional services to support business growth in diverse development and promote diversity and inclusion. 3. S upporting diverse communities and communities. These efforts are overseen by businesses by enhancing our outreach and our D&I Leadership Advisory Board, comprised sharing who we are and what we stand for SPOTLIGHT ON DISRUPTING BIAS TRAINING US Foods’ Disrupting Bias Training provides a common framework for recognizing and 93% OF SENIOR LEADERS COMPLETED DISRUPTING addressing bias in the workplace, with a focus BIAS TRAINING IN 2020 on reaching associates across all levels and functions of the business. Launched in 2020, the training engages participants through five stages of interactive programming focused on exploring where biases originate and how they impact our interactions and decision-making. As part of the program, participants walk away equipped with strategies for identifying and disrupting bias in key situations and ensuring our work environment is welcoming for all.
15 PEOPLE | PLANET | PRODUCTS Ongoing listening sessions between ERGs Over the past several years, we have been working and our Executive Leadership Team allow for to increase the diversity of our director-level open dialogue and the identification of new and above leadership roles through accelerated opportunities to bolster our diversity and development programs for diverse associates and inclusion strategy roadmap. expanded external recruiting partnerships to reach more diverse candidates. We have also enhanced In 2020, we expanded the ERG program from our hiring process to require diverse candidate our corporate offices to all US Foods® locations slates for leadership roles and introduced across the country, enabling participation from unconscious bias training for leaders. Moving our field and frontline associates. Today, we forward, our goal is to fill 40% of our new or open continue to grow the impact and engagement leadership roles with diverse candidates. of our eight ERGs, which include: SPOTLIGHT ON ALLYSHIP • Black Resource Utilization Hub AND ANTI-RACISM WORKSHOP • Collective Asian Network In 2019, US Foods signed the In June 2020, the US Foods Pride Alliance Chicago Network’s Equity Pledge • Hispanic and Latino ERG and Black Resource Utilization Hub ERGs for companies that commit to identify, invest • LINK-UP – Linking Information, Networks teamed up to host a virtual, companywide in and evaluate their progress on advancing and Knowledge Allyship and Anti-Racism Workshop to help gender equity in the workplace. associates navigate conversations around • Pride Alliance racism, understand different perspectives • Those Who Serve – Military ERG and experiences through storytelling from Learning and Development • Women in Network leaders and discuss ways to act as an ally We embed inclusive leadership skills into our both in and outside of the workplace. To • Young Professionals ERG signature leadership development programs, further promote this dialogue, US Foods including Gateway to Leadership for new people trained 200 leaders to facilitate their own WORKFORCE DIVERSITY managers and Aspire to Grow and Aspire to Lead Allyship and Anti-Racism workshops for Recruiting and Supporting Diverse Talent for high-potential leaders. corporate and frontline associates at the A key pillar of our diversity and inclusion strategy Our Learning Partners program, launched local level, including drivers and selectors. is our commitment to increasing the diversity of in 2019, matches diverse, high-potential our workforce and leaders. US Foods leaders with senior leaders to facilitate “It is refreshing to work for a As of January 2021, 51% of our associates one-on-one, two-way learning and help prepare diverse leaders for greater responsibility. company that plays an active role are women or people of color and 32% of our director-level and above leaders are women in promoting equality.” or people of color. Scott Farthing, US Foods IT Specialist
16 PEOPLE | PLANET | PRODUCTS Women’s Foodservice Forum (WFF) Supporting Communities WFF provides the research, insights and best We support food banks and other related practices to help food companies address nonprofits through product and financial the pressing need for talent and increased contributions with the aim of reaching business performance by realizing the full underserved populations in need across potential of female leaders. US Foods is our entire US Foods footprint. In 2020, we proud to be a long-standing sponsor of the made significant donations of product to WFF Leadership Conference, contributing charitable organizations, including 125,000 annually to the success of this initiative. pounds of food to help the Greater Chicago Although the 2020 Leadership Conference Food Depository bring pop-up food pantries was canceled due to COVID-19, we conducted to communities of color on Chicago’s our own internal panels, seminars and ongoing South and West Sides, which have been professional development opportunities for disproportionately affected by COVID-19 WFF participants throughout the year. and civil unrest. In addition, our US Foods Scholars program seeks to support the pipeline of diverse talent SPOTLIGHT ON ~1,000 US FOODS WOMEN HAVE PARTICIPATED IN WFF SINCE 2010 entering the restaurant industry by providing financial support and professional development opportunities to outstanding underserved KATHRYN GARAVENTA, students pursuing culinary careers. Since the 2020 WFF CHANGE MAKER SUPPORTING DIVERSE COMMUNITIES program launched in 2017, we have provided AWARD RECIPIENT AND BUSINESSES over $650,000 in scholarship funding to Kathryn joined US Foods® in 2011 and As a company, we hope to contribute to a more alleviate financial barriers to our industry and currently supports sales effectiveness. equitable and inclusive future through the way help the next generation of diverse culinarians She is a member of US Foods’ Women In we contribute to our local communities and reach their full potential. Today, more than 90% Network Employee Resource Group and do business. By increasing the diversity of our of our US Foods Scholars are diverse. leads a mentorship circle of 10 women from suppliers and enhancing our product offerings, various backgrounds and roles within the To learn more about our community giving we are supporting economic growth among company. She attended her first Women efforts, we invite you to visit page 20 of multicultural businesses and populations. in Foodservice Forum event in 2017 and this report. was inspired to create a US Foods women’s Additionally, our outreach to diverse leadership conference for independent communities allows us to make a meaningful restaurant operators, owners and chefs in difference in the lives of others, reaching her home market. beyond our workplace to support the underserved.
17 PEOPLE | PLANET | PRODUCTS Supplier Diversity network through memberships with organizations $1B+ SPENT WITH 1,800+ We strive to source our products from a competitive and diverse supplier base. These like the National Minority Supplier Development Council and the LGBT Chamber of Commerce SMALL BUSINESSES ACROSS THE U.S.* efforts are driven by a dedicated supplier of Illinois. US Foods is also represented on the diversity lead who collaborates with subject board of the Food and Beverage Industry Group. matter experts across the business to develop In 2021, we will add an additional membership supplier sourcing strategies and secure data to the Women’s Business Development Center $385M+ SPENT WITH 435+ to make informed choices. We also maintain strategic partnerships to support and grow to continue to build upon our current diverse supplier database. SUPPLIERS THAT ARE OWNED AND our efforts. OPERATED BY A DIVERSE SPECTRUM US Foods uses a third-party provider to review its OF PEOPLE, CONSISTING OF WOMEN, This work is enhanced by our US Foods® Supplier supplier diversity data. This supplier is minority- MINORITIES, VETERANS, LGBT+ AND Diversity Council, a cross-functional team within owned and certified through the National Minority INDIVIDUALS WITH DISABILITIES* the organization that works to increase the Supplier Development Council. Data on current diversity of our supplier base. diversity status for each of US Foods’ vendors is reviewed semiannually. Currently, we work with a wide range of diverse *Figures include trade and indirect spend with Tier 1 suppliers suppliers and are increasing our diverse supplier support, inclusion in the NMSDC supplier facilities and operates a fleet of over 100 database, networking support and assistance longline vessels and four tuna seiners. with RFP/bid distribution. “We are proud of our partnership with Most recently, Alfa Gamma Group, a seafood US Foods and sincerely appreciate their supplier to US Foods, received a MBE certification. Alfa was founded by Antonio continued commitment to growing their SPOTLIGHT ON Alvarez in 1989 when he immigrated with his diverse supplier base.” family to Florida from their home in Ecuador. MINORITY BUSINESS Santiago F. Alvarez, Antonio had been involved in the seafood ENTERPRISE CERTIFICATION CEO - Alfa Gamma Group business since 1968, when he started with just Many diverse suppliers we work with have one vessel, a 50-foot-long converted shrimp a Minority Business Enterprise (MBE) trawler rigged for hand seining sardines for the certification through the National Minority fishmeal trade. Supplier Development Council (NMSDC). This certification provides diverse suppliers with a Today, Alfa continues to be a family-run business variety of benefits to help support the growth of based out of Miami that employs more than their business, such as program development 1,400 seafood professionals in its processing
18 PEOPLE | PLANET | PRODUCTS In addition, we have protocols in place for In keeping with our integrated approach to ASSOCIATE SAFETY managing COVID-19 cases, including isolating safety, when possible, our team works to At US Foods®, we are committed to ensuring impacted associates from our facilities, address risk at its root. An example of this that our associates, customers, business conducting a traceback interview with risk-mitigating strategy is our case weight partners and the members of the public with associates who have tested positive, notifying reduction initiative, which is aimed at reducing whom we interact every day are provided with associates and customers with whom they the weight of our heaviest cases of product to a safe and hazard-free environment. In 2019, came into contact, and conducting enhanced help mitigate physical and ergonomic handling we launched our Get Home Safe campaign, cleaning procedures. hazards. We also remain committed to culture- committed to driving an enhanced safety based initiatives, like our Safety Performance SAFETY IN OUR FACILITIES culture and deepening associate engagement. Teams, which leverage a Continuous While prioritizing the immediate challenges The campaign, which is a touchstone for Improvement mindset to enhance safety efforts presented by COVID-19 restrictions, US meaningful conversations about safety, among frontline associates. These teams, Foods has continued investing in people and outlines actions aimed at reducing risks and comprised of warehouse and transportation resources to foster an overall culture of safety improving safety routines. leaders and associates, help identify safety in our facilities. Our new safety staffing model, ENHANCED COVID-19 SAFETY EFFORTS solutions, execute safety routines and monitor introduced in 2019, has further enabled us to As we address the ever-evolving needs of metrics to gauge improvement over time. support a team of professionals focused on our business due to the pandemic, the health improving safety engagement and performance and safety of our associates, customers and throughout our field operations. communities have remained our top priorities. To support this commitment, we have instituted a variety of policies and procedures to help prevent the spread of COVID-19. These include illness prevention guidelines that require associates to stay home if they are sick or have symptoms associated with COVID-19, wellness checks with temperature screenings before entering any US Foods facility, requirements for associates to wear masks and enhanced hygiene and cleaning procedures in all facilities. We have also enhanced our work-from-home policies and introduced guidelines for social distancing and new, essential employee protocols designed to limit close contact and to provide personal protective equipment (PPE) and cleaning and sanitizing products.
19 PEOPLE | PLANET | PRODUCTS SAFETY IN OUR FLEET transportation safety initiatives, we achieved a We employ rigorous practices and technology measurable reduction in our vehicle accident to increase the safety of the more than 6,500 frequency rate in 2020. drivers who operate our fleet. We partner with DRIVER SKILLS COURSE SambaSafety® to continuously monitor our By leveraging Continuous Improvement (CI) drivers’ motor vehicle records and employ the principles, US Foods associates address Lytx® DriveCam® safety program in all of our safety needs with greater efficiency and vehicles to identify safe and coachable driving share best practices across the network. In behaviors. 2019, several leaders and associates at our Throughout 2020, US Foods® continued a distribution center in Seabrook, New Hampshire, multiyear upgrade of our DriveCam system to spearheaded the development of a driver skills Lytx ActiveVision®, which will be completed course specifically intended for use by new in 2021. ActiveVision uses a multi-camera, hires and drivers who have been in accidents video-event capture function to alert drivers or incidents. to driving patterns consistent with distracted While on the course, drivers are accompanied or drowsy driving. In addition, new trucks are by trainers who provide real-time coaching now equipped with the Detroit Assurance® and feedback to help them hone their 5.0 suite of safety systems. This technology professional skills in a controlled environment. enhances safety through Active Brake Assist The Seabrook team achieved a reduction in and Adaptive Cruise Control. These features their accident frequency rate (AFR) following activate warning or braking action when the introduction of the course. In 2020, their necessary and adjust cruising speed to ensure driver skills course was rolled out to US Foods a continuous, safe following distance to other facilities across the country to further develop vehicles and objects in a vehicle’s path. our strong, associate-led safety culture built on SPOTLIGHT ON To supplement advances in our fleet CI principles. US FOODS® ELITE DRIVERS technology, we are continuing to refine our As part of our “Get Home Safe” campaign, Driver Safety Program (DSP) for implementation we recognized more than 190 US Foods elite across all US Foods markets. We know that drivers in 2020 who reached 20 or more years trained and well-equipped drivers are our first of service with accident-free driving records; line of defense when it comes to transportation some even reached over 40 years. Their safety. The DSP is designed to consistently set exemplary driving records are a testament safety expectations for associates who operate not only to their professional driving skills, but our vehicles, while providing an accountability also to their commitment to ensuring they and model to help them return home safely at the others can Get Home Safe. end of each shift. Through the DSP and other
20 PEOPLE | PLANET | PRODUCTS the last year, US Foods® has acted urgently the pandemic to provide immediate relief and HELPING OUR COMMUNITIES to support food banks and other nonprofits meet increasing demand. Thanks to similar We are privileged to be able to give back to helping to nourish communities devastated by contributions by our dedicated teams across the communities in which we live and work the pandemic. the country, US Foods donated a total of — empowering people with nourishment ~$43 million in fresh, frozen and dry products In response to the unprecedented demand and opportunity. As a national foodservice and other supplies throughout 2020 to feed for food assistance, our teams worked with distributor, we strive to make a meaningful vulnerable populations. Feeding America food banks, local partners, difference by donating our time and resources. customers and community leaders to donate Our philanthropy and associate volunteerism efforts focus on culinary education for underserved students and hunger relief. critical food and supplies to those who needed it most. These donations provided millions of ~24M TOTAL POUNDS OF FOOD AND SUPPLIES DONATED IN 2020 meals to feed families struggling with stay- SUPPORTING COVID-19 RELIEF at-home orders, healthcare workers and In 2020, COVID-19 led to increased students facing school closures. For example, THE EQUIVALENT OF unemployment and greater economic strain on communities across the country. With many the US Foods team in Hurricane, West Virginia, donated 56,000 meals to local school students ~20M HUNGER RELIEF MEALS OR APPROXIMATELY 750 TRUCKLOADS OF PRODUCT families struggling to make ends meet, Feeding from 18 schools throughout the county. In America® estimates the number of Americans Phoenix, Arizona, our team donated more facing food insecurity to be approximately 50 million, or one in six individuals in the U.S. Over than $100,000 of protein and produce to St. Mary’s Food Bank within the first weeks of 60 FEEDING AMERICA FOOD BANKS SUPPORTED
21 PEOPLE | PLANET | PRODUCTS As a company, we also lent our support to “US Foods’ generous donation has those in the foodservice industry impacted CASH AND CARRY helped Feeding America food banks by the pandemic. The National Restaurant CHARITABLE EFFORTS provide food to children and families who Association estimates that nearly 100,000 Each year, Smart Foodservice Warehouses, restaurants closed either permanently or long- now CHEF’STORE®, hosts a fundraising need it most. We are incredibly thankful term within the first six months of the pandemic, campaign to fight hunger in local for their commitment to fighting hunger leaving millions of people out of work. Through communities. In 2020, with the support of and for helping to address the increased collaborations with restaurants and chefs in customers, this campaign raised $220,000 for need that food banks are seeing in communities where we operate, we donated local Feeding America Food Bank Partners. communities across the country.” products and logistics support to meal packing events designed to provide much-needed Blake Thompson, relief to displaced foodservice workers. Chief Supply Chain Officer at Feeding America SPOTLIGHT ON HUNGER RELIEF PARTNERSHIPS Through the work of our local teams across the country, we have partnered up with countless outstanding organizations and industry leaders to support those facing hunger. Here are just a few of the ways these partnerships have made a Teamed up with Chef Rick Bayless Partnered with Jon Bon Jovi’s Worked with World Central difference: of Frontera Grill to support his JBJ Soul Foundation and the JBJ Kitchen, the nonprofit founded efforts to provide food and income Soul Kitchen Food Bank to service by Chef José Andrés, to aid the relief for workers impacted by seven food pantries in the East End organization’s Chef Relief Team restaurant closures in Chicago of Long Island and bolster local in the distribution and delivery of efforts to combat food insecurity food and supplies across California, throughout the summer Arkansas and Washington, D.C.
22 PEOPLE | PLANET | PRODUCTS US FOODS® SCHOLARS PROGRAM SPOTLIGHT ON Launched in 2017, our US Foods® Scholars US FOODS SCHOLARS ALUMNI: MEET ANGEL’O AND BRAN’DE program addresses two pressing needs: US Foods Scholars aims to position young culinarians for lifelong success in the culinary industry. providing economic opportunity to Two outstanding program alumni, Angel’o Hill and Bran’De Gilbert, are already on their way, underserved students and helping to tackle the combining their culinary skills and entrepreneurial spirit to establish their own bakery businesses. talent shortage facing the foodservice industry. By supporting the next generation of culinary talent, we aim to set both our customers and our scholars up for success in the industry. The program provides individual awards of up to $20,000 in financial support and professional development to outstanding students seeking to achieve their dreams in the culinary arts. We work with our partners at the Careers Through Chef Angel’o Hill, Chef Bran’De Gilbert, Culinary Arts Program, Scholarship America, Owner of Bread-Puddy-Licious Owner of A Taste of B’s Pastries & More and the American Culinary Federation to Growing up, Chef Angel’o used cooking to unite Chef Bran’De began cooking at the age of three identify deserving students in Arizona, Atlanta, family and friends, create memories and resolve when her father taught her how to pick and clean Austin, Chicago, Denver, New York City and conflict between loved ones. Seeing how food greens and then shadowed her parents in the Raleigh to be named US Foods Scholars. Since brought people together inspired him to attend kitchen for many years. She realized that she wanted its inception, we have welcomed 33 scholars the Art Institute of Atlanta, where he earned to turn her love for cooking into a career during to the program, offering more than $650,000 in a degree in culinary arts management, and her sophomore year in high school, following a scholarship funding. ultimately, pursued a career in the industry. five-week culinary exploratory program. Taking her passion to the next level, she decided to attend During his time as a US Foods Scholar, Chef “Being a US Foods Scholar showed me Kendall College’s School of Culinary Arts in Chicago, Angel’o served as sous chef at a retirement home where she pursued a degree in baking and pastry. that I have the opportunity to be greater where he helped feed hundreds of people every day and developed an affinity for baking. Following Chef Bran’De credits US Foods Scholars for helping and succeed. It inspires me to be an that experience, he decided to open his own bread her take steps to achieve her dream of becoming example for future culinary students.” pudding bakery in Kennesaw, Georgia, Bread- a pastry chef. Today, she is the proud owner of A Puddy-Licious (BPL). BPL specializes in unique Taste of B’s Pastries & More online bakery, which Chef Angel’o Hill, flavor combinations and creating a welcoming specializes in serving up delicious, homemade US Foods Scholars Alum and atmosphere for children and families. In addition treats, including custom cakes. In the future, Chef Owner of Bread-Puddy-Licious to its focus on quality desserts, BPL also believes Bran’De hopes to own multiple bakeries and pastry in supporting the community and providing trucks and inspire other young culinarians to pursue opportunities to build, teach and promote a career in the culinary industry. leadership training skills and strong work ethic.
PEOPLE | PLANET | PRODUCTS PLANET We apply a continuous improvement mindset to our sustainability efforts, consistently identifying opportunities across the business to reduce energy use and improve fleet efficiency. By optimizing our building operations, investing in renewable energy and building facilities to Leadership in Energy and Environmental Design (LEED) standards, we’re reducing the energy intensity of our facilities. By improving our routing to reduce miles driven and testing new technology, we’re increasing the efficiency of our fleet.
24 PEOPLE | PLANET | PRODUCTS Through this initiative, field teams receive CE That’s the equivalent of: REDUCING ENERGY INTENSITY energy efficiency training and participate in Removing approximately 30,000 passenger IN OUR FACILITIES facility tuneups, which provide opportunities to cars from the road for one year* optimize refrigeration systems and operations Our distribution centers require significant and identify energy efficiency projects for the Planting approximately 2 million new trees* amounts of energy to store, refrigerate and future. These efforts have driven a cumulative Saving approximately 13 million gallons of manage our vast portfolio of products. We energy savings of nearly 200,000,000 kWh in diesel fuel* work diligently to reduce the energy intensity of our broadline business since 2015. our business. *Source: EPA greenhouse gas equivalencies calculator US Foods® currently operates three Leadership in Energy and Environmental Design (LEED) Silver-certified facilities, with two additional locations in progress in Marrero, Louisiana, US FOODS and Sacramento, California. LEED-certified BUDA, TEXAS buildings have been shown to lower LEED-CERTIFIED environmental impact and operating costs, DISTRIBUTION FACILITY while providing a healthier working environment for associates. 1M+ SQUARE FEET OF LEED-CERTIFIED BUILDINGS CASCADE ENERGY PARTNERSHIP US Foods began partnering with Cascade Energy (CE) in 2015 to track electricity usage in our facilities through real-time monitoring. This information is used to create predictive facility-level energy models and assess energy performance and potential savings. As a result, our teams are able to better understand our cold storage energy usage based on anticipated conditions.
25 PEOPLE | PLANET | PRODUCTS REFRIGERATION efficiency and reducing greenhouse gas end of 2021. This facility is designed to meet US Foods® continues to invest in the phasing emissions. We operate six facilities with solar rigorous LEED Silver-certification requirements, out of r22 Freon-based refrigeration systems array installations—in Albuquerque, New and the company also plans to install solar in key facilities in favor of lower-emission Mexico; La Mirada, California; Livermore, arrays at this location. alternatives. In these facilities, r22 has been California; North Kingstown, Rhode Island; Each year, 13 million kilowatt hours (kWh) replaced with a new non-ozone-depleting Perth Amboy, New Jersey; and Phoenix, Arizona. of electricity are generated from six refrigerant, and existing equipment has been US Foods solar installations, which includes an retrofitted with alternative refrigeration, such 8.4-megawatt solar installation in Perth Amboy, as ammonia or refrigerants with lower global warming potential. 6 FACILITIES WITH SOLAR ARRAY INSTALLATIONS New Jersey — one of the largest rooftop solar installations in the state. Electricity generated TURNING TO RENEWABLE ENERGY through these installations is equivalent to the Renewable energy, including solar power, Construction is currently underway on a new amount of carbon sequestered by approximately plays an important role in increasing energy distribution center outside of Sacramento, 11,000 acres of U.S. forests in one year. California, which is expected to open at the 13M KILOWATT HOURS (KWH) OF ELECTRICITY ARE GENERATED FROM SIX US FOODS SOLAR INSTALLATIONS
26 PEOPLE | PLANET | PRODUCTS WASTE DIVERSION into meaningful assistance for Americans WATER USAGE According to the Environmental Protection facing food insecurity. Throughout 2020, US Foods strives to be efficient in everything Agency (EPA), solid waste generation is on the we diverted nearly 14,000 tons of waste from we do, including how we use water in our direct rise in the United States. US Foods® works landfills. That's the equivalent of saving nearly operations. Due to the nature of our business, to monitor and reduce waste generated in 600,000 gallons of fuel. our water usage is relatively limited, primarily our direct operations through both recycling reserved for refrigeration cooling cycles, and product donation initiatives. Across our vehicle washing and sanitization in our meat facilities, our material recycling efforts span multiple categories, including cardboard, paper, plastic and electronics, as well as 14,000+ TOTAL TONS OF WASTE DIVERTED IN 2020 processing facilities. To assess efficiency, we track and monitor our water usage across all facilities to ensure usage does not fall outside batteries, lightbulbs and oil/solvents. To track typical parameters. our waste generation and identify further waste reduction opportunities, we partner with Republic Services, the second-largest provider of nonhazardous waste collection and recycling in the United States. Based on site audits with Republic Services and the results of US Foods’ companywide recycling survey, we are both exploring the expansion of our waste diversion efforts in the area of organic waste and examining centralized waste reporting strategies for local and national suppliers. In addition to our material recycling initiatives, supporting community organizations and nonprofits through donations of surplus product allows US Foods to divert food waste from landfills. The EPA’s Food Recovery Hierarchy lists feeding the hungry through food banks, soup kitchens and shelters as a preferred action to prevent and divert wasted food. Throughout the year, our facilities US FOODS DIVERTS work with our major feeding partners like FOOD WASTE THROUGH Feeding America to convert our excess food PRODUCT DONATIONS TO HUNGER-RELIEF PARTNERS LIKE FEEDING TEXAS
27 PEOPLE | PLANET | PRODUCTS As we continue to update and add to our IMPROVING THE The EPA’s SmartWay program fleet, we have selected new vehicle models EFFICIENCY OF OUR FLEET helps US Foods advance that feature an aerodynamic design for better Delivering products by truck is core to our supply chain sustainability by measuring, fuel efficiency and engines that run at a lower business. We continually work to improve benchmarking and improving freight RPM to reduce emissions. In addition, the new transportation efficiency and reduce the transportation efficiency. vehicles include state-of-the-art diagnostics environmental footprint of our fleet. that connect to the engine and monitor performance in real time, as well as onboard OPTIMIZING ROUTING VEHICLE ENHANCEMENTS computer monitoring systems that are used to We’re optimizing our routing to reduce miles US Foods® is recognized as a SmartWay report fuel economy and idle time. These data driven and rightsizing our vehicles by route type partner by the U.S. Environmental Protection are used to drive continuous improvement and to improve transportation efficiency. This work Agency’s SmartWay Transport program. The higher efficiency. includes the implementation of technology that installation of SmartWay-verified tires and tire equips our drivers with real-time traffic data inflation systems, the adoption of extended oil and the increased integration of backhauls drain schedules to reduce oil use and waste and into our routing. These efforts, in addition to the utilization of lighter-weight oil to improve our other efficiency measures, have helped fuel economy all contribute to improved freight us reduce gallons of fuel used annually and transportation efficiency. reduced Scope 1 and Scope 2 emissions. 6.9% REDUCTION SINCE 2015 IN GALLONS OF FUEL USED PER CASE DELIVERED 1,2 7.3% REDUCTION IN SCOPE 1 AND SCOPE 2 EMISSIONS INTENSITY SINCE 2015 2,3,4 1. Broadline business only. 2. Includes the Food Group of Companies, acquired in September 2019, and reflects transportation inefficiencies with reduced volumes caused by the COVID-19 pandemic. 3. Emissions intensity measured as pounds of CO2e per case delivered. 4. Includes Smart Foodservice Warehouse Stores, acquired in April 2020.
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