Sysco Corporation (2015 – Present)

Sysco Corporation (“Sysco”) is the North American leader in selling, marketing and distributing food products, equipment and supplies for the foodservice and hospitality industries.

Trian was attracted to Sysco due to the company’s stable growth, scale relative to peers, well-established and trusted brand, and high cash flow generation. Trian believed there was a meaningful opportunity at Sysco to improve operating margins, enhance working capital efficiency, implement a more efficient capital structure and better align compensation with corporate objectives and company performance.

On August 14, 2015, Trian announced its investment in Sysco. On August 20, 2015, Trian partners Nelson Peltz and Josh Frank joined Sysco’s Board of Directors.

On July 17, 2017, Sysco announced that Tom Bene would become CEO effective January 1, 2018, and will also join Sysco’s Board.

Trian looks forward to continuing to help make Sysco a more efficient and forward-looking food service distributor in the United States.

Sector: Consumer

Fun Fact: Sysco delivers over 1.3 billion cases of food and related products per year – more than 40 cases per second – to its customers, including restaurants, healthcare providers, educational facilities, lodging establishments and other foodservice customers

Company Website: http://www.sysco.com/

ESG Highlights:

  • Low Emission Vehicles In December 2017, Sysco placed a reservation for 50 Tesla fully-electric Semi tractors (to begin production in 2019) that will have up to 500 miles of range on a single charge. SYY’s goal is to have 20% of SYY’s tractor fleet converted to alternative fuel vehicles by 2025
  • Diversity: Spent $750 million with nearly 500 minority- and women-owned suppliers in FY2018 with a goal to increase spend 25% by 2025
  • Sustainable Supply Chain: In 2009, Sysco partnered with World Wildlife Fund (WWF) to assess the company’s seafood supply chain, and in 2016, reinforced its commitment to improve the sustainability of its seafood procurement practices and standards
  • Solar Power: In June 2018, Sysco announced a ten-year agreement with NRG Energy. In February 2019, NRG Energy constructed three solar gardens in Houston and Dallas that supports approximately 10% of Sysco’s U.S. operations and will reduce emissions by 37,000 tons of CO2 annually
  • Favorable ISS ESG Score Received a 3 on ISS’s QualityScore metric for Governance, and 2 for Environmental and Social (as of July 25, 2019), the third and second-highest possible scores (on a scale of 1-10, best-worst)
  • Board Refreshment PlanSince Trian’s investment, Sysco has elected 8 new directors (out of 12), established a 15-year limit on director tenure, and announced a “360 degree” performance review process for individual directors that will take place every three years and will solicit feedback from management and other directors
  • Food SafetyIn June 2019, Sysco announced that the Company is joining the Partnership for Food Safety Education (PFSE) to further its commitment to improve public health outcomes by reducing foodborne illnesses and raise awareness of safe food handling practices
  • Environmentally Responsible Products: In October 2018, Sysco launched Sysco Earth Plus®, a planet-friendly initiative aimed at utilizing caterware made from sustainable materials
  • Food Waste ReductionIn 2016, FreshPoint (a Sysco company) launched its Unusual But Usable (UBU) program that finds customers interested in utilizing “imperfect” produce that might otherwise go to waste

For more information on ESG initiatives at Sysco, please visit https://www.sysco.com/About/Company-Profile/Corporate-Social-Responsibility.html

Trian Board Members