Sprouts Farmers Market, Inc. | Disclosure of key diversity and inclusion metrics at Sprouts Farmers Market, Inc.

Status
AGM passed
AGM date
Resolution details
Company ticker
SFM
Lead filer
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that Sprouts Farmers Market (Sprouts) report to shareholders on the effectiveness of the Company's diversity, equity, and inclusion efforts. The report should be done at reasonable expense, exclude proprietary information, and provide transparency on outcomes, using quantitative metrics for workforce diversity, hiring, promotion, and retention of employees, including data by gender, race, and ethnicity.
Whereas clause
WHEREAS: More than half of the S&P 500 and over one-third of the Russell 1000 have released, or have committed to release, their consolidated EEO-1 forms, a best practice in diversity data reporting. Companies that release, or have committed to release, more inclusion data than Sprouts include Albertsons Companies, Campbell Soup, Estee Lauder, Philip Morris International, and Target.

As You Sow and Whistle Stop Capital released research in November 2023 that reviewed the EEO-1 reports of 1,641 companies against financial performance metrics from 2016-2021. [1] Within the consumer staples sector, statistically significant positive correlations were found between increased manager diversity and income after tax, return on equity, and return on invested capital.

As of the date of the filing of this proposal, Sprouts had not yet released its consolidated EEO-1 form, nor had it shared sufficient hiring, retention, or promotion data to allow investors to determine the effectiveness of its diversity and inclusion programs.

As detailed below, inclusion indicators are also important in assessing Sprouts’ workplace equity efforts and if the Company will be able to successfully build, utilize, and maintain a diverse management team.
Supporting statement
SUPPORTING STATEMENT: Quantitative data is sought so that investors can assess and compare the effectiveness of companies’ diversity, equity, and inclusion programs.

It is advised that this content be provided through Sprouts’ existing sustainability reporting infrastructure. An independent report specific to this topic is not requested.

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