Chipotle 2013 Annual Report Download - page 107

PROPOSAL E
AN ADVISORY VOTE ON A SHAREHOLDER PROPOSAL REQUESTING CHIPOTLE TO ISSUE AN
ANNUAL SUSTAINABILITY REPORT MEETING SPECIFIED CRITERIA
Proposal E is a shareholder proposal. If the shareholder proponent, or representative who is qualified under
state law, is present at the annual meeting and submits the proposal for a vote, the proposal will be voted upon.
The shareholder proposal and related supporting statement are included in this proxy statement as submitted by
the proponent and we accept no responsibility for their contents. The Board’s statement in opposition to the
proposal is presented immediately following the proposal and supporting statement. The name and address of the
proponent and the amount of stock owned by the proponent will be promptly provided to any shareholder making
an oral or written request for such information to our corporate Secretary at our headquarters.
Whereas:
Managing and reporting environmental, social and governance (ESG) business practices help companies
compete in a business environment characterized by finite natural resources, changing legislation, and heightened
public expectations. Transparent, substantive reporting allows companies to gain strategic value from existing
sustainability efforts and identify emerging risks and opportunities. ESG issues can pose significant risks to
business. Without proper disclosure stakeholders and analysts cannot ascertain whether the company is managing
its ESG exposure.
The link between strong sustainability management and value creation is increasingly evident. A 2012
Deutsche Bank review of 100 academic studies, 56 research papers, two literature reviews, and four meta-studies
on sustainable investing found 89% of the studies demonstrated that companies with high ESG ratings also
showed market-based outperformance.
More than 1,200 institutional investors managing more than $33 trillion have joined The Principles for
Responsible Investment and publicly commit to seek comprehensive corporate ESG disclosure and incorporate it
into investment decisions.
The majority of large corporations also recognize the value of sustainability reporting. As of December
2012, 53% of the S&P 500 and 57% of the Fortune 500 published a corporate sustainability report; 63% of S&P
500 reporters utilized the Global Reporting Initiative (GRI) Guidelines. According to a 2011 KPMG report, 80%
of Fortune Global 250 companies produce GRI-based sustainability reports.
Industry peers like Darden Restaurants, Dunkin Brands, and Starbucks have identified relevant ESG factors
and address them through sustainability reports.
In contrast, Chipotle Mexican Grill which stated in 2010 that its “commitment to serving Food with
Integrity will continue to have many beneficial impacts,” and “it is constantly working to get all of the
ingredients it uses from sustainable sources”, has very limited information on its policies and progress towards
achieving its objectives.
Resolved:
Shareholders request Chipotle to issue an annual sustainability report describing the company’s short- and
long-term responses to ESG-related issues. The report should include objective quantitative indicators and goals
relating to each issue where feasible, be prepared at a reasonable cost, omit proprietary information, and be made
available to shareholders by October 2014.
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Proxy Statement