Kroger’s newest Environmental, Social, and Governance (ESG) report has arrived with a fresh look at how the grocery company is progressing on its sustainability and social impact efforts.

While much of the report goes over the company’s work in 2022 along with a status update on its previously stated goals, Kroger also gave a glimpse into what’s next on its agenda. 

Here are the upcoming initiatives that Kroger detailed in the report.

Refrigeration upgrades

Kroger said it is in the process of transitioning stores to new infrared detectors that identify lower concentrations of leaked refrigerants. So far, 2,047 stores use this new technology, and Kroger aims to have all of them doing so by the end of 2024. 

Kroger plans to build six more stores by the end of next year featuring carbon dioxide refrigerant technology, and noted that it will transition to this ultra-low global warming potential refrigerant in situations where it is “economically and technically feasible.” Earlier this year, Kroger opened a store with this new technology to test how it aligns with the grocer’s phase-down requirements. 

Workforce and supplier impacts

In 2022, Kroger finished the first phase of its company-wide human resources system transformation, which includes consolidating 12 legacy systems into two new systems. 

The grocer will continue this revamp into next year.

“[We] will continue our transformation in 2023 and early 2024 with the phased launch of remaining HR and timekeeping functionality,” the report noted. “This investment in modernized systems is designed to help simplify and enhance the associate experience with more mobile-enabled functionality, reduced manual processes and a streamlined user interface.” 

Kroger said it plans to conduct a third human rights impact assessment (HRIA) in 2024. Last year, the company conducted an assessment of mixed greens produced in the U.S. and one on shrimp aquaculture operations in India. Both HRIAs, which were conducted by third-party researchers, included site visits, interviews and a gender-equity lens to assess unique risks for female workers.

The company is also in the process of creating a guide for vendors that will provide implementation guidelines and context to support suppliers’ responsible sourcing practices.

Kroger said it plans to give suppliers updated guidance and resources in 2023 and 2024. The new resources will cover human rights, animal welfare, greenhouse gas emissions reduction, sustainable packaging, food waste and agricultural production methods, among other topics. 

Boosting energy efficiency efforts

Kroger plans to expand its renewable energy purchases next year by activating additional renewable power purchases in three markets, including Cincinnati, where it’s based. 

In 2022, the grocer bought more than 263,000 megawatt hours of zero-carbon power from energy providers, including solar and wind projects in Texas and Virginia. 

Kroger is also working with multiple national service providers to install electric vehicle charging infrastructure in states such as Arizona, California, Colorado, Georgia, Indiana, Nevada, Ohio, Oregon, Washington and Wyoming, with plans to expand to new areas “in the coming years.”

Food waste improvements

Kroger noted that its food waste recycling efforts slowed down slightly in part due to the implementation of a new program for managing cooking oil in many stores. The new program aims to use cooking oil more efficiently and reduce waste. By the end of this year, Kroger is planning to have that program implemented chainwide. 

Resetting scopes

Kroger noted in the report that there is a “global consensus that more urgent climate action is needed” along with heightened pressure from investors to make progress on climate change efforts.

To address those imperatives, the grocery company said it has pledged to set new goals aligned with the Science Based Targets initiative, a joint venture between nonprofit CDP, the United Nations Global Compact, the World Resources Institute and the World Wide Fund for Nature aimed at improving companies’ work to reduce greenhouse gas emissions. This work will include resetting Kroger’s current Scope 1 and 2 emissions targets to support the United Nations’ goal of keeping global warming below 1.5°C and setting a new Scope 3 emissions goal that includes a Forest, Land and Agriculture target. 

It’s unclear when Kroger will unveil these new goals, although the company said this work is a priority throughout 2023.