Restaurant Brands International - Food Foundation

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Restaurant Brands International - Food Foundation
Restaurant Brands International
Analysis summary

(Scores closer to outer rings of spider diagram represent better performance)

 Where progress has been made:

 •   Some progress shown on reducing unhealthy ingredients such as saturated fats, salt and sugar.
 •   Plan (during 2020) to assess impacts of 8 high impact procurement categories (accounting for over 80% of
     procurement spend) including greenhouse gas emissions, waste, water, and energy usage.
 •   Some progress shown relating to deforestation risk from palm oil. Overall statement to work with supply
     chain partners towards targets for 2030 for priority commodities, including beef, soy and coffee.

 Where more needs to be done:

 •   No clear targets for healthier foods, fruit & vegetables and for plant-based proteins.
 •   Unclear extent to which initiatives for marketing and promoting healthy food are central to corporate
     strategy and policy.
 •   No update found on measuring and setting targets for climate change, especially scope 3 greenhouse gas
     emissions reductions.
 •   Lack data for sustainably sourced soy and beef.
 •   Lack data on % of food sourced from producers using sustainable farming practices.
 •   Disclosure on mapping and engagement on water management in water-stressed regions is lacking.
 •   Not accredited living wage employer according to Living Wage Foundation (UK).
 •   Human rights auditing of suppliers beyond tier 1 remains inconsistent.
Sector comparison:

Product & supply chain risks & opportunities:
                                                          RBI scores poorly on both healthy and sustainable
                                                          products and supply chain sustainability.
                                                          Potential risks:
                                                          • Policy action on unhealthy food
                                                          • Reputation risk for unhealthy food
                                                          • Reputation & supply risk for supply chain
                                                              environmental impacts
                                                          • Reputation risk for supply chain human rights

                                                          Potential opportunities:
                                                          • Sales growth for plant-based foods

Key investor asks should be:

•   Set sales-weighted targets for healthier sustainable food (for reduced fat, salt and sugar, for fruit &
    vegetables, and for plant-based proteins).

•   Clarify marketing and promotion of healthy food within corporate level strategy and policy.

•   Use more intuitive nutrition labelling for customers (such as traffic light system for % of recommended daily
    intakes).

•   Set target for scope 3 greenhouse gas emissions reduction.

•   Set targets for certified sustainable soy and beef.

•   Begin mapping suppliers using sustainable farming practices.

•   Gain accreditation with Living Wage Foundation or pay and disclose that equivalent wage levels are paid.

•   Report on human rights auditing of global suppliers beyond tier 1.
Detailed analysis and data sources:
 Theme                            Company commitments and data (in public domain unless specified)              Score     Data source & further information
 Health & Nutrition
 Nutritious products &
 services
 Target for sales-weighted %      Targeting a 10% sodium reduction across permanent à la carte Burger King                Corporate website & linked reports
 increase in menu/ products
 meeting agreed nutritional
                                  US menu items that contain more than 2,000 mg sodium.
                                  Will also set forward-looking targets to reduce fat, sodium, and sugar
                                                                                                                •P
 standard                         across existing entrees, meal combinations, and side dishes at Burger King,
                                  Tim Hortons, and Popeyes restaurants globally.
                                  2019: reviewed all of permanent Burger King US menu items and identified
                                  those that contained over 2,400 mg sodium, then developed new recipes
                                  achieving a sodium reduction of up to 18% on those products.
                                  February 2020: all permanent à la carte items on the Burger King US menu
                                  will contain less than 2,400 mg sodium.
                                  Global initiative to collect menu data, engage suppliers, and conduct
                                  ingredient research to improve the nutritional profile of menu.
 Target for increase in fruit &   We found no specific mention of this, beyond some reference to children’s               Corporate website & linked reports
 veg as % of food
 procurement
                                  meals.                                                                        •P
 Target for % of protein          Trialled plant-based and alternatives to animal proteins in limited cases.              Corporate website & linked reports
 procurement from animal &
 plant-based foods
                                                                                                                •P
 Encouraging healthy &
 sustainable diets
 Company has clear policy on      Policy for children's meals, but not globally enforced (US mainly + some                Corporate website & linked reports
 relating to healthy choices
 for children
                                  European):
                                  < 500 calories, < 10% of calories from sat fats, no added trans fats, < 650
                                                                                                                •
                                  mg of sodium, < 15g added sugar, at least 2 portions of
                                  fruit/veg/dairy/whole grains.
 Company promotes healthy         We found no mention of this issue.                                                      Corporate website & linked reports
 choices through price
 promotions?
                                                                                                                •
 Company have clear policy        Policy for children's meals, but not globally enforced (US mainly + some                Corporate website & linked reports
 relating to marketing healthy
 vs unhealthy food?
                                  European):
                                  < 500 calories, < 10% of calories from sat fats, no added trans fats, < 650
                                                                                                                •
                                  mg of sodium, < 15g added sugar, at least 2 portions of
                                  fruit/veg/dairy/whole grains.
 Target for % of menu or          Basic nutrition information accessible within restaurants, mobile and                   Corporate website & linked reports
 products with intuitive
 health labels (ideal 100%)
                                  online platforms.
                                  UK: have nutritional information available via website but not intuitive or
                                                                                                                •P
                                  RDA-based.

 Theme                            Company commitments and performance in the public domain                      Traffic   Data source & further information
                                                                                                                light
 Environment
 Climate change
 Target for scope 1 & 2           Restaurant design teams develop building standards that incorporate the                 Corporate website & linked reports
 emissions reduction
 (Science-based target)
                                  use of leading industry products and practices focused on reducing usage
                                  of water, energy, and waste, in both new restaurants and updates to our
                                                                                                                •
                                  existing locations.
                                  Examples:
                                  2017: all new Burger King restaurants built in Europe, the Middle East,
                                  Africa,
                                  Latin America and the Caribbean incorporated a new fryer that reduces
                                  electricity consumption and decreases oil use by up to 30%.
                                  More energy efficient vertical toaster became the global standard for all
                                  new Burger King restaurants (reduces energy consumption by 20%).
                                  Company feedback:
                                  As noted on our website here, RBI will be measuring our global carbon
                                  footprint this year for the first time. We will measure Scope 1, 2, and 3,
                                  and will establish reduction targets for Burger King and Tim Hortons
                                  restaurants in Canada and the US.
                                  We intend to begin reporting publicly in the 2021 CDP disclosure cycle.
 Target for scope 3 emissions     2020: will conduct a life cycle assessment of 8 high impact procurement                 Corporate website & linked reports
 reduction (Science-based
 target), specifically food in
                                  categories accounting for over 80% of procurement spend. This
                                  assessment will cover GHGs, waste, water, and energy usage.
                                                                                                                •S
 supply chain                     Company feedback:
                                  As noted on our website here, RBI will be measuring our global carbon
                                  footprint this year for the first time. We will measure Scope 1, 2, and 3,
and will establish reduction targets for Burger King and Tim Hortons
                                restaurants in Canada and the US.
                                We intend to begin reporting publicly in the 2021 CDP disclosure cycle.
Biodiversity
Target for zero net land-use    Forest commitment: will work with supply chain partners towards the                   Corporate website & linked reports
conversion through
company's reliance on palm
                                following by 2030 or sooner for priority commodities, including beef, soy
                                and coffee:
                                                                                                                 •S
oil as a product or an          No deforestation of primary forests
ingredient.                     No deforestation of areas of High Conservation Value
                                No development of High Carbon Stock forest areas
                                No development on peatlands
                                Respecting human rights as per our Vendor Code
                                The right of all impacted communities to provide or withhold free, prior
                                and informed consent
                                2018: 34% of directly sourced palm oil was from Roundtable on
                                Sustainable Palm Oil (RSPO)-certified sources.
                                Future plan: Complete the transition to sourcing all palm oil from
                                suppliers who can verify sustainable production as detailed in our Palm
                                Oil Sourcing Policy.
Target for zero net land-use    As above.                                                                             Corporate website & linked reports
conversion through
company's reliance on soy as
                                                                                                                 •S
in animal feed.
Target for zero net land-use    As above.                                                                             Corporate website & linked reports
conversion through
company's reliance on beef.
                                                                                                                 •S
Sustainable food production
practices
Target for % of wild-caught     We found no mention of this.                                                          Corporate website & linked reports
or farmed fish & seafood
certified to higher
                                                                                                                 •S
sustainability standards
Target for % of products        2020: will conduct a life cycle assessment of 8 high impact procurement               Corporate website & linked reports
produced under sustainable
production practices and
                                categories accounting for over 80% of procurement spend. This
                                assessment will cover GHGs, waste, water, and energy usage.
                                                                                                                 •S
monitoring.                     Member of the Global Roundtable for Sustainable Beef (GRSB)
Water use

Target for water use            We found no mention of this.                                                          Corporate website & linked reports
reduction in operations                                                                                          •
Target for reducing % of food   2020: will conduct a life cycle assessment of 8 high impact procurement               Corporate website & linked reports
sourced from water stressed
regions.
                                categories accounting for over 80% of procurement spend. This
                                assessment will cover GHGs, waste, water, and energy usage.
                                                                                                                 •S
                                Member of the Global Roundtable for Sustainable Beef (GRSB)
Food waste

Company has policy to help      We found no mention of this.                                                          Corporate website & linked reports
customers reduce food
waste of purchased products
                                                                                                                 •P
Target for % reduction in       We found no mention of this.                                                          Corporate website & linked reports
operational food waste.                                                                                          •P
Target for % of suppliers       2020: will conduct a life cycle assessment of 8 high impact procurement               Corporate website & linked reports
being engaged to reduce
food waste in supply chain
                                categories accounting for over 80% of procurement spend. This
                                assessment will cover GHGs, waste, water, and energy usage.
                                                                                                                 •S
Plastics

Target for % plastics           Target: By 2025, 100% of approved guest packaging will come from                      Corporate website & linked reports
packaging that is recyclable.   renewable, recycled or certified sources.
                                December 2019:
                                                                                                                 •P
                                In the process of collecting data to report on status in this area.

                                Target: Facilitate access to waste diversion including recycling, starting
                                with recycling guest packaging in 100% of Burger King and Tim Hortons
                                restaurants in Canada and the US by 2025.
                                December 2019:
                                We are in the process of collecting data to report on our status in this area.
Target for reducing single-     Examples:                                                                             Corporate website & linked reports
use plastics without creating
a food waste risk
                                Tim Hortons implemented new straw-less lids for cold beverages in Canada
                                and will transition fully in the US by early 2020, which will remove 120
                                                                                                                 •P
                                million plastic straws from our supply chain each year.
                                Tim Hortons will launch a refreshed reusable cup platform in 2020, making
                                affordable reusable drinkware available for purchase in all standard
                                restaurants across Canada.
                                UK: Burger King has completely removed all plastic toys from its King Junior
Meals, estimated to save 320 tonnes of single use plastic annually.
                                India: Burger King has announced a 100% ban on single use plastics, and
                                continues to use more environmentally friendly materials like bamboo for
                                forks, spoons, and stirrers.
                                Burger King Korea and Burger King India have implemented a reusable cup
                                system for in-store guests.
Animal welfare & antibiotics

BBFAW tier position or          Ranked tier 4 company in Business Benchmark on Farm Animal Welfare.                    BBFAW 2019
Target for % of animal
products certified to high
                                                                                                               •S
animal welfare standards.
Target for zero supply chain    Restaurant Brands International will work with our current vendors to                  Corporate website & linked reports
use of antibiotics as a
prophylactic or growth
                                develop action plans to address routine use of antibiotics and other growth
                                promotants sub-therapeutically to speed growth and mitigate poor
                                                                                                               •S
promoter                        conditions.
                                2018: both the Tim Hortons and the Burger King brands have fulfilled North
                                American commitment to only source chicken raised without antibiotics
                                important to human medicine , as defined by the World Health
                                Organization (WHO).
                                Will measure and understand current usage of antibiotics in the chicken
                                supply chain for Popeyes, as well as the beef supply chain for Tim Hortons
                                and Burger King.
                                For each brand, by the end of 2020, will establish reduction targets for the
                                US and Canadian markets related to the use of antibiotics important to
                                human medicine, as defined by the WHO.

Theme                           Company commitments and data (in public domain unless specified)               Score   Data source & further information
Social Inclusion
Company recognises the          No specific mention found, although various employee benefits exist. No                Corporate website & linked reports
need for a real liveable wage
for all employees
                                clear requirements for franchises.                                             •
Target for % of supply chain    Have Code Business Ethics and Conduct for employees and vendors.                       Corporate website & linked reports
engaged to ensure human
rights and labour rights,
                                Vendor Code guidelines include wages, benefits, and working hours in
                                compliance with laws, no forced labour, no child labour, freedom of
                                                                                                               •S
beyond tier one.                association, and a safe working environment.
                                2018: Tim Hortons Coffee Partnership (THCP) has worked with over 14,000
                                farmers and their families, of which 3000 farmers are women. This work
                                has resulted in over 28000 hectares of land under sustainable management
                                in Brazil, Colombia, Guatemala and Honduras and the strengthening of
                                over 200 producer organizations. In addition, over 3000 youth in coffee
                                growing communities have been reached through the Generations
                                program where they gain exposure and skills training in a broad array of
                                local career opportunities.
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