Sprouts Farmers Market, Inc.
Company Double Materiality Analysis
This one-page analysis examines a company’s products, services and operational practices and whether they positively contribute or detract from sustainability goals. Our analysis relies on quantitative indicators, leading industry frameworks and covers topics most relevant to the company’s industry.
Sprouts Farmers Market, Inc.
Ticker: SFM US
ISIN: US85208M1027
Market Cap: US$4.4 billion
GICS Sector: Consumer Staples
SICS Industry: Food Retailers & Distributors
Country: United States
SMS theme: Building Better Markets
SMS sub-theme: Sustainability DNA
Contribution to theme: Positive
Company Description
Sprouts Farmers Market, Inc. engages in the operation of healthy grocery stores. The firm specializes in fresh, natural and organic products. Its products include fresh produce, bulk foods, vitamins and supplements, grocery, meat and seafood, deli, bakery, dairy, frozen foods, body care and natural household items.
Revenue exposure by country/region: USA (100%).
Contribution to the sub-theme objectives:
Sprouts is prioritizes natural and organic products, reduces the use of harmful pesticides and promotes environmentally-friendly practices. Moreover, Sprouts has initiatives in place to reduce waste and promote the efficient use of resources.Â
Operational Performance
(Laggard, Aligned or Leader)
Material Topics for Food Retailers & Distributors: GHG Emissions, Energy Management, Waste & Hazardous Materials Management, Data Security, Product Quality & Safety, Customer Welfare, Selling Practices & Product Labeling, Labor Practices, Supply Chain Management.
Assessment: Aligned
21,742,458 GJ of energy consumed in 2022 for deliveries (0% renewables). Scope 1 emissions from refrigerants: 85,029 MTCO2e, 98% of refrigerants have zero ozone depleting potential. Total operational energy consumed: 1,202,569 GJ (0% renewables). 35,869 t of waste generated in 2022 with 87% diverted from the waste stream.
Two class 1 food safety recalls in 2022. 52% of revenues from products with health and nutrition attributes.Â
Average hourly wage is $18.99. 0% of workers under collective bargaining agreements.
51% of revenues from products third-party certified to an environmental and/or social standard.
Strive to include 30% recycled content in packaging. Conduct supply chain audits but do not disclose more detail.
Controversies: 2022: FDA investigated a Hepatitis A outbreak linked to organic strawberries (notably sold at SFM).
Product/Service Impact
(Negative, Neutral or Positive)
Assessment: Positive
The grocery stores chain has a strong commitment to providing high-quality natural and organic foods. Their offerings encompass an extensive range of products, including fresh produce, bulk foods, vitamins, supplements, dairy, meats, and freshly baked goods.
Catering to diverse dietary preferences, Sprouts ensures that customers following plant-based, gluten-free, organic, keto, paleo, or non-GMO diets can find the foods they need.
Despite pandemic-related challenges and criticized changes, Sprouts is committed to rediscovering its core mission of providing health-conscious and organic options, solidifying its status as a trusted source for wholesome and affordable groceries.
SDG Alignment:
A downloadable version of the Double Materiality Analysis of Sprouts Farmers Market is available in the pdf attached.
