US Foods Holding Corp. (USFD) — ESG & Values Scores

Environment story

US Foods discloses a 2032 net-zero target for Scope 1&2 emissions (32.5% reduction from 2019 baseline) and a supplier science-based target commitment (67% by 2027). However, Scope 3 emissions are undisclosed, creating material gap in supply-chain carbon visibility. The company acknowledges climate regulation risk and facility contamination remediation obligations but provides no quantified decarbonization capex or renewable energy percentage. No evidence of physical infrastructure investments (e.g., electric fleet, renewable power). Risk factors emphasize supply-chain disruptions and climate vulnerability but lack concrete operational mitigation. The company's 2032 target extends beyond 2045 threshold for premium scoring. Supply-chain emissions (food sourcing, transportation, refrigeration) likely dominate footprint but remain unquantified—a greenwashing vulnerability given foodservice distribution's inherent carbon intensity.

Criticisms on file

Undisclosed Scope 3 Emissions: Foodservice distribution inherently involves high product-use emissions (customer food preparation, refrigeration, transportation). Company risk factors acknowledge supply-chain carbon but provide no Scope 3 quantification or mitigation targets.
Source: USFD 10-K, Item 1A Risk Factors, 'Climate change, or the legal, regulatory or market measures being implemented to address climate change, may have an adverse impact on our business.'
No Renewable Energy Percentage Disclosed: Company does not report percentage of electricity from renewable sources, limiting transparency on Scope 2 progress.
Source: USFD 10-K, MD&A and Environmental Risk Factors; no renewable energy disclosure found in filing.
Heavy Reliance on Offsets vs. Operational Cuts: Company acknowledges dependence on technological advancements (e.g., electric vehicles, alternative fuels) rather than demonstrating achieved operational emissions reductions. No capex quantification for decarbonization infrastructure.
Source: USFD 10-K, Item 1A Risk Factors, 'Our ability to meet these and other related goals depends in part on significant technological advancements...'
Fuel Cost & Emissions Exposure: Company spent $174 million on fuel in FY2025, indicating high operational carbon footprint. Risk factors note fuel cost volatility but do not address emissions reduction linked to fleet modernization.
Source: USFD 10-K, MD&A, 'Fuel costs related to outbound deliveries approximated $174 million during fiscal year 2025.'

Disclosed initiatives

Scope 1&2 Emissions Reduction Target

32.5% absolute reduction by 2032 from 2019 baseline for direct and purchased electricity emissions.

Modest near-term (7-year) goal; does not meet net-zero by 2035 threshold; scope limited to direct operations.
Supplier Science-Based Targets Initiative

Goal for 67% of suppliers by emissions (purchased goods & services) to adopt science-based climate targets by 2027.

Positive engagement lever but depends on third-party compliance; no enforcement mechanism disclosed.
Facility Contamination Remediation

Ongoing investigation and remediation of known/suspected contamination from historical fuel and hazardous substance releases.

Addresses legacy environmental liability but does not constitute decarbonization; no quantified timeline or capex.

Social story

US Foods employs approximately 30,000 associates, ~6,600 (22%) unionized (International Brotherhood of Teamsters and affiliates). Company reports positive union relations and no major strikes documented in trailing 24 months, supporting a neutral-to-positive labor stance. However, CEO-to-median-worker pay ratio is undisclosed, limiting compensation equity assessment. Leadership diversity metrics are absent from the filing; no gender/racial representation percentages for executives or board provided. Company acknowledges labor shortage risks and increased labor cost pressures but does not quantify turnover rates. Supply-chain human-rights audits are not disclosed; no forced-labor, conflict-minerals, or living-wage commitments evident. Government contractor status subjects the company to Department of Labor Office of Federal Contract Compliance Programs oversight, but audit outcomes are not disclosed. Overall, the company demonstrates labor-relations stability but lacks transparency on diversity, pay equity, and supply-chain ethics.

Criticisms on file

Undisclosed CEO-to-Median-Worker Pay Ratio: No compensation equity data provided; unable to assess executive compensation alignment with workforce median pay.
Source: USFD 10-K; Compensation, Discussion & Analysis section not provided in source documents; proxy statement required for CEO pay disclosure.
No Diversity Metrics Disclosed: Filing does not include gender or racial representation percentages for executives, board, or broader workforce. No EEO-1 disclosure or diversity initiatives referenced.
Source: USFD 10-K, Risks Relating to Human Capital Management; no diversity section found.
No Supply-Chain Human-Rights Audits: Company does not disclose audits of supplier labor practices, forced-labor compliance, or living-wage commitments. Risk factors acknowledge supplier policy but provide no verification mechanism.
Source: USFD 10-K, Item 1A Risk Factors, 'Our product suppliers are also subject to various laws and regulations...'; no supply-chain audit program disclosed.
Labor Shortage & Cost Pressure Risk: Company acknowledges potential for significant labor cost increases and employee turnover due to macroeconomic factors; no wage-competitiveness or retention strategy disclosed.
Source: USFD 10-K, Item 1A Risk Factors, 'We may be unable to attract or retain a qualified and diverse workforce...'

Disclosed initiatives

Union Relationship Management

Company negotiates collective bargaining agreements (CBAs) with union locals and maintains stated commitment to 'good relations' with unionized associates. Contributions to multi-employer pension plans ($60M in FY2025) support union-negotiated benefits.

Supports labor stability; no recent strikes or major disputes indicate successful negotiation practice.
Labor Shortage & Retention Efforts

Company acknowledges need to attract and retain qualified warehouse workers and drivers; recruiting and productivity initiatives underway but outcomes not quantified.

Addresses supply-chain risk but lacks metrics on success rates or wage competitiveness.
Government Contractor Compliance (OFCCP)

As a government contractor, company is subject to Department of Labor Office of Federal Contract Compliance Programs oversight of employment practices.

Subjects company to periodic audits; no audit findings or remediation actions disclosed in filing.

Governance story

US Foods operates as a publicly traded company with standard governance framework: Delaware incorporation with forum-selection clause, single-class share structure (no dual-class voting premium), and board independence not quantified in filing. Company has $5.2 billion outstanding debt with restrictive covenants limiting operational flexibility; debt agreements restrict dividend payments, asset disposals, and additional indebtedness. No material antitrust or consumer-protection regulatory proceedings disclosed, and no SEC consent decrees noted. Lobbying expenditures not disclosed. Company has received shareholder activism pressure (acknowledged in risk factors) and has implemented accelerated share repurchase and buyback programs ($926M in FY2025), suggesting capital-allocation focus on shareholder returns. Board composition and independence percentage are not disclosed in the 10-K; proxy statement would be required for full governance assessment. No evidence of climate-deregulation lobbying or anti-ESG litigation.

Criticisms on file

Shareholder Activism Exposure: Company acknowledges past and potential future activist stockholder actions that may disrupt operations and require significant management/board resources. Company notes potential adverse effects on strategy execution, regulator relations, and customer/supplier relationships.
Source: USFD 10-K, Item 1A Risk Factors, 'Actions of activist stockholders could adversely impact our business and cause us to incur significant expenses.'
Undisclosed Board Independence Percentage: 10-K does not provide board independence metrics; proxy statement would be required to assess governance strength. Forum-selection clause may limit shareholder remedies.
Source: USFD 10-K; board composition details not included in source documents.
Lobbying Expenditures Not Disclosed: Company does not quantify annual lobbying spend in 10-K. Risk factors acknowledge regulatory compliance costs related to climate, wage, and environmental regulations but do not disclose political engagement strategy.
Source: USFD 10-K, Item 1A Risk Factors, 'Changes in legal or regulatory requirements...may result in increased compliance cost'; no lobbying disclosure section found.
High Debt Burden & Restricted Flexibility: $5.2B outstanding debt includes restrictive covenants limiting dividend payments, asset sales, and additional borrowing. Company carries material refinancing risk with debt maturing 2026–2033; refinancing costs could spike if credit markets tighten.
Source: USFD 10-K, Item 1A Risk Factors, 'Our level of indebtedness may adversely affect our financial condition...' and MD&A 'Indebtedness' section.

Disclosed initiatives

Debt Covenant Compliance & Financial Discipline

Company maintains restrictive debt covenants requiring compliance with financial ratios, asset-disposal restrictions, and dividend limitations. As of December 27, 2025, company had ~$2.8B of restricted payment capacity and $1.6B of restricted net assets.

Constrains operational and capital-allocation flexibility but demonstrates creditor oversight.
Share Repurchase Programs

Company executed $926M in common stock repurchases in FY2025 under Original Share Repurchase Program and May 2025 Share Repurchase Program, plus $50M in accelerated share repurchases.

Capital allocation favors shareholder returns over debt reduction or reinvestment; may reflect activist pressure.
Forum-Selection Clause

Amended and Restated Certificate of Incorporation establishes Delaware Court of Chancery as sole forum for derivative and internal-affairs litigation, and federal court for Securities Act claims.

Limits shareholder litigation options; may reduce governance accountability but provides cost certainty.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of US Foods Holding Corp.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open US Foods Holding Corp. in the app for interactive charts and portfolio building.

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