SpartanNash’s ESG Report Highlights Progress in Sustainability, DEI

SpartanNash has released its inaugural environmental, social and governance (ESG) report, which it said supports ongoing efforts to drive transparency and company excellence. It also highlights strategic priorities and successes tied to specific ESG milestones and metrics, including those related to sustainability, reduced inequalities and its workforce.  

In sustainability, the company is examining supply chain efficiencies, food waste and carbon footprint and energy reductions in-stores and by focusing on its “people first” culture, SpartanNash is boosting wages, hiring inclusively and improving time-off policies

“We are proud of where we are today but recognize that progress is a journey, and we will dig deeper to set new benchmarks this year while continuing to hold ourselves accountable to ensure transparency and deliver a reliable, sustainable and resilient future for our stakeholders,” Tony Sarsam, president and CEO of Grand Rapids, Mich.-based SpartanNash, said in a release.

The ESG report noted several ways SpartanNash, which owns and operates 145 supermarkets under banners such as Family Fare, Martin's Super Markets and D&W Fresh Market, is working to be a more sustainable company. It has developed a plan to reduce fleet mileage—which includes reducing the miles food travels through network optimization—by 10% this year. SpartanNash said this would reduce greenhouse gas emissions by 10,000 metric tons.

The company also noted that 84 stores and 11 distribution centers have upgraded to LED lighting, which has helped reduced its CO2 emissions by 19,902 metric tons, SpartanNash said.

Another way SpartanNash is working to reduce food miles is through its commitment to expand local product offerings. The company said it aims to collaborate with vendors who uphold its standards for fair and equitable working conditions and who support local communities. “When food is sourced responsibly and sustainably, everyone wins—our customers, our consumers and our planet,” the report said.

Sourcing responsible food also extends to the oceans, and SpartanNash said it works to partner with suppliers who use responsible practices, including a focus on sustainability, traceability, food safety and social responsibility.

The report also detailed its efforts to reduce food waste, including a partnership with Flashfood to offer a 50% discount on food nearing its best-before date, which in 2021, helped eliminate 146,000 pounds of potential food waste through 27 stores, SpartanNash said, adding that it keeps a close eye on inventory to ensure food nearing its best-before date can be donated to prevent waste.

As part of its efforts to reduce inequalities, SpartanNash said it has evolved its talent review and succession planning process to include the creation of talent pools for key roles, with a focus on increased representation of women, the BIPOC (Black, indigenous and people of color) population and veterans. Companywide in 2021, 4.2% of SpartanNash’s workforce were veterans; 20.8% represented BIPOC communities; and 47.9% were women.

SpartanNash has four associate resource groups whose aim is to support all employees, including SN Vets (for veterans); RISE (for young professionals); WIN (for women); and TIDE (Total Inclusion, Diversity & Equity, BIPOC Network). The company also created three leadership development programs with embedded diversity and inclusion training and education, and all managers had to complete these in December 2021, it said.

Further illustrating its commitment to its associates, SpartanNash noted that in 2021, it increased pay by an average of over 10% for all entry-level roles in retail and supply chain areas, representing over 90% of its associates. It also made new hires eligible for benefits sooner (now 30 days or fewer, down from 60 days), and expanded the company bonus program to include more employees, making 900 more people eligible. The latter move represents a $2.4 million investment in target bonuses in 2021 and a 57% increase in participants, SpartanNash said.

SpartanNash’s ESG report was compiled with guidance and oversight from senior leaders from all areas of its business, as well as members of the executive leadership team and board of directors. The company noted that its focus areas align with the United Nations Sustainable Development Goals to "improve health and education, reduce inequality and spur economic growth—all while tackling climate change and working to preserve our oceans and forests."

The core capabilities are: people (engaging employees and having a diverse workforce); operational excellence (efficiencies and optimizations to cut waste and energy); and solution insights (focusing on health).