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Teaming on Sustainability-Manufacturing & Retail with Lisa Zwack and Denis George
While many people know Kroger as the nation’s largest traditional food retailer, few know that they are effectively the fifth largest consumer packaged goods manufacturer in the nation and have more than 2800 retail food stores under a variety of banner names. In this episode, we learn that Kroger is committed to protecting people and the planet by advancing positive change in their company and communities and realizing that they could have multiple environmental and social impacts through their own operations, through the supply chain, and in other areas. Zero Hunger, Zero Waste is what Kroger named their social impact plan to end hunger in their communities and to eliminate waste in their company by 2025. This plan was launched in September of 2017 and was inspired by their purpose to feed the human spirit. They are always looking to the future and have recently announced their new, and very ambitious, 2030 ESG Goals. Joining Smart Decisions Founder John Failla for this closer look are Kroger’s Lisa Zwack, Head of Sustainability, and Denis George, Category Manager – Energy. You will want to hear this episode if you are interested in... [1:58] A brief scope & scale of Kroger and Lisa & Denis’ roles and responsibilities [5:00] Drivers and commitments related to Kroger’s sustainability and energy management [8:30] Drivers behind Kroger’s energy programs [10:50] Safety and quality are paramount [12:30] The role that investor interest has played [20:45] More about Kroger’s approach to Climate Impact [25:08] Two key ideas for getting store-level associates to buy into the idea of saving energy [29:17] the La Habra Baking Project [34:01] What role, both internally and externally, do you see relationships playing in pursuit of your ESG goals? [41:45] What is unique about Kroger’s relationship with Duke Energy? [43:57] Talk about the future and where things are headed Stakeholder/Investor Engagement Stakeholder engagement is a great way for Kroger to learn what their key internal and external stakeholders think about what they are doing and what they think Kroger should be doing moving forward. Kroger engages with its stakeholders through its materiality assessment early in the year. It is a great focused opportunity to get input from their various stakeholders, investors, NGOs, and any number of people outside of the company as well as inside the company. Kroger wants to hear what is most important to their leaders as well. Investors are a key audience. There is increased investor interest in how companies are managing climate risk and climate impact and how they are reducing energy usage and moving to more renewables and reducing greenhouse gas emissions. Kroger is generally always trying to increase and improve the amount of transparency that they use when they talk to their stakeholders as they know that they are trying to get more decision-useful information for their purposes of making investments in different companies. Kroger prides itself on being very in tune with what investors are looking for and being responsive to that. They also took part in a qualitative climate risk assessment late last year. Kroger assesses and manages risk as a company overall, but this assessment was a great foray into the more dedicated climate risk assessment process, which is something else investors are looking for companies to do. Historically Driven by Expense Savings Twenty-some years ago, when Denis started with the company, they were more “Zero Energy, Zero Waste” before they were “Zero Hunger, Zero Waste.” Denis states that if they can fulfill their mission to their customers by using less energy, that is just a smart way to operate a business. They learned long ago that through energy efficiency they could achieve that very quickly and very uniformly. They have also found that one can achieve cost reduction in many other ways - through contract negotiations, better rates from utilities, items o
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