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DISCLAImer: We are not spartannash :)
DISCLAImer: We are not spartannash :)
Who are they?
Who are they?
SpartanNash is a food solutions company that distributes grocery and household products to companies across the nation. This is usually to customers who buy their products in bulk like independent grocery stores, chain stores, e-commerce retailers, and their own brick-and-mortar grocery stores they operate. Their mission is that they deliver ingredients for a better life, with their core capabilities being People, Operational Experience, and Insights that drive solutions. They strive on having a people first culture and investing back into the company. The company is a food distribution and retailer that is publicly traded on the Nasdaq.
Number of Locations:
Grocery Stores: 192 Distribution Centers: 18
What are the sustainability goals of the business?
What are the sustainability goals of the business?
They have a few sustainability goals for their company in 2023-2025:
Improve Ton Miles Per Gallon (TMPG) Rate by 10%
Achieve top-quartile safety performance with an incident rate of <2, representing a 35% decrease in incident rates
Significantly increase efforts to attract, recruit, retain, and promote women, people of color, and veterans
Hire 300 interns, significantly increasing targeted outreach to diversify the pool of qualified candidates and converting as many as possible to permanent positions
Provide 20 million meals through food and funding to those in need within our communities
Maintain an ongoing focus on Board refreshment to promote diversity and the right combination of skills and experience
metrics and material issues
metrics and material issues
SpartanNash prioritizes fresh and high quality ingredients, and are cognizant of the waste associated with food solutions companies. Using an Environmental, Social, and Governance (ESG) approach for their materiality assessment, SpartanNash analyzes the impact their actions have as a company on the communities they are surrounded by. SpartanNash has chosen to prioritize reducing their food waste through improved inventory management, committing to diversity and inclusion in their workforce, community engagement, and employee growth and development within the company. They have other material issues and metrics listed in their 2022 ESG report, such as ethics and integrity, product and packaging sustainability, and data security. All issues are addressed within the report.
Food waste
Progress
In 2022, exceeded goal of reaching 20% of eggs sold being cage-free in wholesale and retail.
Uses Itasca Magic (Upshop) to help reduce waste and improve demand forecasting
Flashfood app that allows consumers and community nonprofits to purchase food nearing its best by date at savings up to 50%.
As of 2022, 71 participating SpartanNash stores, 916k pounds of CO2e emissions saved and 482k pounds of potential food waste decreased.
Diversity and inclusion
Progress
Associate resource groups (ARG) Each ARG was assigned a sponsor from the Executive Leadership Team that assists with communication, connection and alignment.
In 2023 plan to hire over 100 interns by recruiting from a diverse pool of candidates
2022 Representation (company wide)
Veteran (3.9%), BIPOC (21.2%) [13% directory and above], Women 48.4%
Community engagement
Progress
SpartanNash Go app gives associates real-time news updates and opportunities to converse with company
In 2022, SpartanNash launched its annual Associate Engagement Survey administered by Peakon to ensure anonymity
Provided a forum for both in-person and virtual attendees, where SpartanNash shared its strategic initiatives and a detailed path on how the Company plans to achieve its 2025 long term financial targets.
Employee growth
Progress
Rewards improvements (competitive with market, aligned to associate skills and performance, equitable)
The average hourly wage has increased over 11% from 2020 to 2022
The Employee Stock Purchase Plan was enhanced to reduce the waiting period, and the discount was increased from 5% to 15%
Associate development through tuition reimbursement
Extended tuition program in 2022 to 1,630 associates and $2,250 per year per associate
deep dive of Spartannash I.T. system
deep dive of Spartannash I.T. system
Current data being collected: Scope 1 and 2 emissions
Data they still need: Scope 3 emissions.
Challenges with the IT system: The system they use to collect their data was not initially created for ESG reporting.
"Our current systems do not provide reporting to help us improve our performance. We track internally on our initiatives and have our committees review opportunities.” - SpartanNash representative
Current reports: Yearly ESG reports
Scope 1 Emissions
Scope 1 Emissions
The largest source of Scope 1 emissions is fleet fuel.
Operates a diverse fleet of owned and leased transportation equipment. Owned equipment includes 570 over-the-road tractors, 253 non-refrigerated trailers and 1,130 refrigerated trailers.
Converting from freon to ammonia, which would represent 23% of all possible freon to ammonia/CO2 conversions in DCs.
Piloting renewable natural gas tractors, while they evaluate hydrogen as a possible fuel alternative.
Transportation Management System - allows for the use of a single route, miles and customer service strategy from a single point of contact for each region.
SpartanNash plans to continue converting trailer refrigerant on an ongoing basis to R-452A, which is non-ozone depleting and has a lower GWP than what they currently use.
Scope 2 Emissions
Scope 2 Emissions
LED Lighting Conversion - In 2022, SpartanNash converted a portion of the Lima, Ohio DC to LED lighting, creating a savings of 236,700 kWh.
Monitoring temperature set points for air conditioning.
Modernizing battery chargers and material equipment.
Installing LED lights in distribution centers (79%) and retail stores (85%).
The organization is currently evaluating the use of on-site solar on distribution center roofs.
Additionally, they are looking at incorporating electric vehicle charging stations at fuel stations for both consumers and associates.
Stakeholder Engagement
Stakeholder Engagement
Provided a forum for both in-person and virtual attendees, where SpartanNash shared its strategic initiatives and a detailed path on how the Company plans to achieve its 2025 long term financial targets.
Along with a formal investor presentation, in-person attendees experienced a trade show where they had the opportunity to meet the entire Executive Leadership Team
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