2023 IMPACT REPORT
2023 IMPACT REPORT | LETTER FROM | WHO WE ARE | IMPACTFUL | THRIVING | PURPOSEFUL | HEALTHY | RESPONSIBLE | APPENDIX | 2 |
THE CEO | PRODUCTS | PLANET | PEOPLE | COMMUNITIES | BUSINESS | ||||
DEAR STAKEHOLDERS,
The Sprouts story began at a small fruit stand in Southern California in 1943. A man named Henry Boney would visit farmers markets across the region and bring a bounty of fresh produce back to his community in San Diego.
When Henry opened his first store
- small and easy to shop - he put produce in the center, he sourced unique items from local vendors that couldn't be found at any other grocer, and curated a vitamin and supplement department that filled a need in his community for wellness products. This blueprint was visionary.
When Shon Boney, Henry's grandson, founded Sprouts in 2002, he rooted the business in a legacy of providing access to fresh, healthy, innovative products and doing things differently than anyone else. That heritage runs deep throughout our company today, 80 years later.
Since joining Sprouts in 2019, I've been consistently moved by the commitment and passion our team members have for what makes Sprouts special. They care about what products we sell and where
those products come from. They treat the business like it's their own, always looking for new ways to do things, new ways to be different. They work hard every day to help our customers and make a positive impact on the communities we serve.
In 2023, for the first time in our company's history, we attempted to put into words that special feeling, that distinctive motivation, that extraordinary "why" behind the energy that has propelled our business and made it so unique for so long. For the first time, we wrote down what is in our DNA, we wrote down our purpose:
To help people live and eat better.
Simple. Straightforward. Real. Exactly who we are and what we do.
In this report, you'll read about some of the ways our 32,000 team members make our purpose come alive every day. We're sourcing more innovative products that are healthy, attribute- based, and have a lower environmental impact and higher societal benefit.
We're reducing waste and donating more meals to those in need than any year in our company's history. And we're making meaningful strides in fostering our culture of caring and inclusion while also investing heavily in team members development and well-being.
We are all stewards of Sprouts for a short while. I am incredibly proud of the work the teams across the business are doing to further our purpose of helping people live and eat better, and I hope you find that this report reflects the care our team members have for one another, our customers and communities, our suppliers, and our planet.
Jack Sinclair
Chief Executive Officer
CONTENTS
Who We Are | 4 |
Impactful Products | 9 |
Thriving Planet | 22 |
Purposeful People | 30 |
Healthy Communities | 38 |
Responsible Business | 42 |
Appendix | 48 |
This Impact Report (this Report) contains information about Sprouts' Environmental, Social and Governance (ESG) strategy and performance. In addition to the information found in this Report and on sprouts.com, we externally report on our sustainability strategy, programs and progress toward our goals in Sprouts' Annual Report on Form 10-K,and Proxy Statement. All financial figures indicated in this Report are in U.S. dollars, unless otherwise noted.
This Report contains "forward-looking statements" that reflect our current views about future events and involve known risks and uncertainties that may cause our actual results to be materially different from those expressed by the forward-looking statements. Unless otherwise indicated, information included in this Report is as of our 2023 fiscal year ended December 31, 2023. All references to "Sprouts" in this Report are to Sprouts Farmers Market, Inc., a Delaware corporation, and its consolidated subsidiaries.
Cover photo: Eco Farms provides Sprouts with healthy | |
and nutritious California grown avocados. | Blueberry plants at Wish Farms, our local blueberry supplier in Florida |
2023 IMPACT REPORT | LETTER FROM | WHO WE ARE | IMPACTFUL | THRIVING | PURPOSEFUL | HEALTHY | RESPONSIBLE | APPENDIX | 4 |
THE CEO | PRODUCTS | PLANET | PEOPLE | COMMUNITIES | BUSINESS | ||||
WHO WE ARE
Our Story | 5 |
Our Purpose & Values | 6 |
Our Long-Term Growth Strategy | 7 |
Materiality | 8 |
Sprouts Healthy Communities Foundation garden workshop at Manzo Elementary School in Tucson, AZ
2023 IMPACT REPORT | LETTER FROM | WHO WE ARE | IMPACTFUL | THRIVING | PURPOSEFUL | HEALTHY | RESPONSIBLE | APPENDIX | 5 |
THE CEO | PRODUCTS | PLANET | PEOPLE | COMMUNITIES | BUSINESS | ||||
OUR STORY
We're one of the largest and fastest growing natural and organic specialty grocers in the country, providing the communities we serve access to healthy, innovative products in an easy to shop small-store format. Our purpose- driven people are passionate about helping our customers discover wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based, and gluten-free. Headquartered in Phoenix, Arizona, we employ 32,000 team members and operate more than 400 stores in 23 states nationwide.
I love having Sprouts near my home. It's convenient, has fresh organic produce and unique items I can't find anywhere else. It has a small town feel and I love that!
Lynn H.
Colorado Springs, CO
2023 HIGHLIGHTS
$6.8B | $3.3B | ||
30 | 27% | in sales of products | |
in sales | with a social or | ||
environmental | |||
new stores | of total sales from | attribute | |
opened | organic products |
3,000 | 7,100 |
new and | |
new jobs | differentiated |
products |
2023 IMPACT REPORT | LETTER FROM | WHO WE ARE | IMPACTFUL | THRIVING | PURPOSEFUL | HEALTHY | RESPONSIBLE | APPENDIX | 6 |
THE CEO | PRODUCTS | PLANET | PEOPLE | COMMUNITIES | BUSINESS | ||||
OUR PURPOSE & VALUES
We believe the most successful and impactful companies are motivated not solely by profits, but by improving lives and the planet we all share. Our purpose at Sprouts, the reason we exist, is to help people live and eat better. Our 32,000 team members work every day to bring our Purpose to life by providing access to healthy food and wellness products with clean ingredients that are sourced responsibly. We consistently seek to operate our business with the goal of minimizing our impact on the environment by improving the soil, advancing animal welfare practices, and ensuring fair and proper treatment of workers in our supply chain. These efforts are designed to improve the lives of people in our communities. We are not perfect, but we are getting better every day.
Our values were created with input from team members across the company and these values guide the decisions we make and create a culture of inclusion and belonging.
Sprouts is my go to store for organic produce, grass-fed beef, and pasture-raised eggs. If I need help with an item, there's always a friendly team member willing to assist. I'm grateful you are here!
We care for each other, our customers and our planet.
We work as a team to deliver excellence in all we do and celebrate our success.
Alexia H.
Naples, FL
Our diverse team members and products
create a unique experience for our customers.
2023 IMPACT REPORT | LETTER FROM | WHO WE ARE | IMPACTFUL | THRIVING | PURPOSEFUL | HEALTHY | RESPONSIBLE | APPENDIX | 7 |
THE CEO | PRODUCTS | PLANET | PEOPLE | COMMUNITIES | BUSINESS | ||||
OUR LONG-TERM GROWTH STRATEGY
Inspire & Engage | Winning with our | Updated Format | Create an | Refined |
our Talent to Create | Target Customers | and Expand in | Advantaged Fresh | Marketing |
a Best Place to Work | Encouraging healthy living | Select Markets | Supply Chain | Digital |
Developing our culture of | and wellness through | Smaller format with | Increasing freshness, | customized |
caring and inclusion with | innovative products and | less carbon intensive | reducing food waste, and | customers' |
diverse talent and rewards | supplier partnerships | operations, taking | lowering transportation | lifestyle |
that are better for the | advantage of infill | miles | reduces | |
environment | expansion efficiencies | |||
$19.68/HR | $3.3B | 25% | 80% | 26M |
average pay rate for store | in sales of products with | carbon emissions | of our stores are within | followers across all |
team members | a social or environmental | reduction target per | 250 miles of a distribution | social platforms |
attribute | square foot by 2033 | center |
75% | $100M | 30 | 120M | $1.3B |
of promotions were from | in sales of products from | new stores opened | pounds of recyclables | in Sprouts Brand sales |
female and/or racially/ethnically | diverse, minority, and | in our smaller more | recovered through our | delivering on health, quality, |
diverse team members | women-owned suppliers | efficient format | reverse logistics program | innovation, and sustainability |
815K | 3M | 10 | 170 | 19% |
training hours completed | students participating in school | locations retrofitted with | local farmer | of transactions linked to |
garden education programs | lower global warming | relationships | a Sprouts account | |
supported by the Sprouts Healthy | potential refrigeration | |||
Communities Foundation |
2023 IMPACT REPORT | LETTER FROM | WHO WE ARE | IMPACTFUL | THRIVING | PURPOSEFUL | HEALTHY | RESPONSIBLE | APPENDIX | 8 |
THE CEO | PRODUCTS | PLANET | PEOPLE | COMMUNITIES | BUSINESS | ||||
MATERIALITY
In 2023, we worked with a third-party ESG advisor to engage with our various stakeholders to understand what areas they believe are material to our business. The stakeholder groups included Sprouts leadership and Board of Directors, team members, customers, investors, suppliers, non-governmental organizations, sustainability professionals, and academics. Our approach to assessing materiality also consisted of benchmarking peers, and leading ESG ratings systems and frameworks such as SASB, MSCI, ISS ESG, and Sustainalytics. In total, more than 150 metrics were evaluated and 15 key areas were of most importance to our stakeholders. We have categorized these topics into three groups to be transparent with our stakeholders about where we plan to prioritize investing our resources.
CORE TO
SPROUTS
Foundational areas at the heart of what we do - non-negotiables
- and governance items required for a responsible business.
- Food Quality & Safety
- Healthy Food & Transparency
- Ethics & Integrity
- Board Composition & Independence
- Data Privacy & Security
- Board Oversight of ESG
PRIMARY AREAS OF FOCUS
Actively invest and drive excellence with intentionality.
- Sustainable & Responsible Sourcing
- Team Member Engagement & Retention
- Team Member Recruitment, Training, & Development
- Diversity, Equity, & Inclusion
- Community Engagement
OTHER KEY FOCUS AREAS
Continue to address and make progress over time.
- Waste Management
- Climate Change & GHG Emissions
- Energy Management & Usage
- Water Management
I visited my local Sprouts store and received excellent help from a gentleman named Michael who was working in the bulk section. I had come from a vision appointment and had my eyes
dilated, so I wasn't seeing clearly. Michael assisted me with several products and labeled them for me. He even offered to help me out with the groceries. He was super kind, as well as knowledgeable, and I was very appreciative! Please pass along my praise.
Peggy T.
Brandon, FL
2023 IMPACT REPORT | LETTER FROM | WHO WE ARE | IMPACTFUL | THRIVING | PURPOSEFUL | HEALTHY | RESPONSIBLE | APPENDIX | 9 |
THE CEO | PRODUCTS | PLANET | PEOPLE | COMMUNITIES | BUSINESS | ||||
IMPACTFUL
PRODUCTS
Innovation | 11 |
Sprouts Brand | 12 |
Responsible Sourcing | 13 |
Food Quality & Safety | 21 |
Bates County Produce in Rich Hill, Missouri, grows watermelons naturally without the use of motorized equipment or electricity.
2023 IMPACT REPORT | LETTER FROM | WHO WE ARE | IMPACTFUL | THRIVING | PURPOSEFUL | HEALTHY | RESPONSIBLE | APPENDIX | 10 |
THE CEO | PRODUCTS | PLANET | PEOPLE | COMMUNITIES | BUSINESS | ||||
HEALTH & WELLNESS
Our target customers are mindful of and connected to the food they eat, how it makes them feel, how it's grown or raised, how it's processed and where it comes from. We take great care in curating an assortment that meets their different preferences, needs, and lifestyles - whether it's locally sourced produce, gluten-free cereal, grass-fed beef, oat milk yogurt, wild caught fish, humanely raised chicken, seaweed-based face cream, or collagen powder coffee creamer. Our customers do research and look for inspiration. We are proud to be on the forefront of healthy and sustainable food innovation and to continue paving the way for natural food trends that support our customers on their well-being journey.
$2.3B
in sales of products
with a health or
nutrition attribute
19%
of total sales from healthy fruits and vegetables
4,000
vitamins and other wellness supplements to support health & well-being
Sprouts is my go-to grocery store for accessible wholesome and healthy products. As someone who loves fresh, local, and organic goods, I love the variety!
Theresa H.
Denver, CO
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Sprouts Farmers Markets Inc. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 16:06:01 UTC.