Dive Brief:
- Doughnut chain Krispy Kreme released its inaugural ESG report last week, unveiling an increase in scope 1 and scope 2 emissions compared to the previous year. Emissions amounted to over 70,000 tons of CO2 equivalent in 2022, up from approximately 65,000 tons of CO2 equivalent in 2021.
- The company aligned with the Task Force for Climate-related Disclosures to report on climate-related risks, opportunities and key metrics. The company’s TCFD disclosure said “climate-related discussions inform all significant decisions made by Krispy Kreme management.”
- Krispy Kreme also outlined future environmental and social goals in its “Be Sweet: Responsibility Report,” such as diverting at least 50% of food waste from landfills and achieving gender parity by the end of 2025.
Dive Insight:
Despite a rise in scope 1 and scope 2 emissions, the doughnut company said it had achieved carbon neutrality in its U.K. and Ireland operations in 2022 by sourcing renewable energy and “strategic carbon offsets” linked to its ingredients’ supply sources. The carbon offsets included renewable energy and conservation projects.
Krispy Kreme has not set targets on scoped emissions, but is developing internal processes to collect the data necessary to inform its target-setting strategy, according to the report. The company said it aims to incorporate recommendations from the Science Based Targets initiative into its strategy.
“We are putting a firm stake in the ground on our commitment to Be Sweet in every element of our operations, in the communities we serve, and for the planet,” said Josh Charlesworth, who will transition into the role of Krispy Kreme’s president and CEO in January.
The company completed its first materiality assessment in 2021 to better understand its impact on its employees, communities and planet and help determine the most important priorities to its investors, customers and employees. The assessment included input from more than 60 internal and external stakeholders to identify critical risks and opportunities, out of which 10 material topics were selected as top priorities.
The company's priorities for its workforce include increasing diversity among team members and “promoting belonging,” acceptance and equal opportunity. Currently, four out of its eleven board members are female.
On the environmental front, the company is prioritizing measuring the company’s energy footprint and carbon emissions to plot a path for reducing its greenhouse gas emissions. Krispy Kreme said it planned on increasing the recyclability of its packaging and has established a goal to reach 80% recyclable or compostable packaging across its operations by 2025. The report said the company achieved 65% recyclability in 2022 through initiatives such as recyclable retail cartons, plastic free cups, and paper or compostable straws in its stores.
