DEAR FELLOW SHAREHOLDERS:

Although Albertsons’ 2021/2022 and 2023 ESG reports tout its goal of sending zero food waste to landfills by 2030, the company neither discloses how much total food waste it’s currently generating nor how much it’s diverting from landfills. Adoption of this proposal would therefore provide data necessary for shareholders to assess Albertsons’ progress meeting its goal on this hugely significant policy matter.

Further, this proposal’s request is aligned with SASB Standards’ “Food Waste Management” disclosure topic for food retailers.

Like this proposal, that topic requests the amount of food waste generated and the percentage diverted1— although Albertsons has inexplicably excluded the topic entirely from its SASB reporting tables.2

Moreover, what Albertsons does share doesn’t quantify the company’s progress toward its goal.

The food waste section of Albertsons’ latest ESG report touts some attempts to prevent and divert excess food,3 but Albertsons chooses not to disclose the fundamental details needed to fully understand its progress and impact (again, overall food waste quantities and the total percentage diverted).

By contrast, Kroger does disclose its total food waste (222,522 metric tons in 2023, for example) and the percentage diverted (45.9% from retail stores).4 Such transparency makes sense, as reducing food waste impacts significant policy issues while also improving financial performance.

In fact, food waste is a “Tier 1” issue according to Albertsons’ own Materiality Assessment, indicating it ranked in the highest categories in both its importance to the company’s business and importance to the company’s stakeholders.5 Additionally, BlackRock says “[t]he need for solutions that...lower food waste and provide alternatives to scarce resources has never been greater,” Institutional Shareholder services (ISS) calls food waste “a growing area of concern globally,” and Glass Lewis says it has “significant economic and environmental and social ramifications.”

For instance, the production of wasted food causes significant greenhouse gas emissions and consumes vast amounts of freshwater, fertilizer, cropland, and other resources.

Further, Forbes has reported that food waste costs taxpayers billions of dollars and poses “an existential risk to grocery stores.” Meanwhile, the organization Champions 12.3—whose leaders include Nestle’s and Rabobank’s CEOs and the U.N. Food & Agriculture Organization’s Chief Economist—analyzed nearly 1,200 business sites (including retailers) across 17 countries and found 99% earned a positive return on investment through food waste reduction. Food retailers, hotels, and foodservice companies had ROI ratios between 5:1 and 10:1.

Since adoption of this proposal would advance Albertsons’ transparency on a highly consequential matter, we believe support is strongly warranted. Thank you.

www.bit.ly/SASB-FoodRetailers
www.bit.ly/AlbertsonsSASB
www.bit.ly/AlbertsonsFoodWasteSection
www.bit.ly/KrogerSASB
www.bit.ly/AlbertsonsAssessment