CORPORATE SOCIAL RESPONSIBILITY REPORT 2016

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1 CORPORATE SOCIAL RESPONSIBILITY REPORT

2 COMMUNITY AND SUSTAINABILITY Our vision is to be the leading operator of enduring and innovative QSR brands in New Zealand. That s why we re guided by principles of sustainability. These principles help shape our menus, management practices; our people and the way we contribute to the communities we serve. At the core of Restaurant Brands social responsibility ethos are four interdependent elements: People, Food, Planet and Progress. We re proud of the advances we continue to make in these areas, in line with our culture of innovation and our drive to constantly raise the bar in everything we do. 2

3 PEOPLE Our company depends on the support of Kiwi consumers, and on positive partnerships with employees, suppliers, franchisees and investors. In turn we make a strong economic contribution to our local communities, and support a range of non-profit and community organisations. 3

4 OUR EMPLOYEES 3,363 STAFF NATIONWIDE SERVING 71,000 CUSTOMERS EVERY DAY Our employees are at the heart of our business, and critical to its success. We re committed to being a responsible and fair employer, offering: + + Guaranteed minimum hours of work: we have a consistent framework around working hours that improves the certainty of work availability and allows for the Company and our employees to plan ahead. + + Competitive remuneration to attract and retain skilled employees: we regularly refresh our remuneration model using market data to ensure market parity for employees across the business. Our waged employees have the opportunity to increase their rate of pay through a pay for skill system and are given regular opportunity to move through pay rates. + + Our employees are supported with the time and resources to up-skill: e-learning is now in place across the KFC and Pizza Hut businesses and class-room style group orientation has proven popular for new recruits to Carl s Jr. + + We are committed to supporting a diverse and inclusive work environment: with 26 different nationalities represented across the business and over half our workforce being female (together with a significant proportion of senior management), we are committed to a truly diverse workforce. 4

5 SAFE, HEALTHY WORKPLACES The health and safety of our employees and customers is our top priority. We have an excellent record for workplace health and safety. + + Workplace lost time incidents per million hours worked was 23 in Our target: zero loss of workdays from injury across all our brands TRAINING AND DEVELOPMENT One of our company s strengths is the way we develop our people and their skills at every level. We ve trained thousands of new employees from basic food handling skills to restaurant manager level and beyond. Our focus is on developing the people we have and reducing staff turnover, by: + + Investing in our people through training and education programmes across all our brands All employees working in our stores must complete Health and Safety and Food Safety (Unit Standard 167) training, and demonstrate ongoing competency. We re a tertiary level member of ACC s Accredited Employers Programme, and a member of the Business Leaders Health and Safety Forum. + + Identifying talented employees and providing clear paths for their career development + + Constantly updating our employee training and education programmes + + Rolling out an e-learning programme for a large proportion of our staff EQUALITY AND DIVERSITY Restaurant Brands is an equal opportunity employer and we embrace and reflect the diversity of the communities we operate in. + + Our staff range in age from The average age of our employees is For many people, we provide that valuable first job + + Our workforce is 54% female, including a significant proportion of senior management 5

6 GIVING BACK TO OUR COMMUNITIES We re proud of the contribution we make to our local areas, delivering important economic benefits and supporting a range of community and charitable organisations. ECONOMIC CONTRIBUTION Our business operations make a significant contribution to the communities we serve, through jobs, wages and salaries, tax payments, dividends, goods and services purchased and investment in existing and new stores. SURF LIFE SAVING NEW ZEALAND LIMITED KFC has been a charity partner of Surf Life Saving New Zealand since As well as raising funds, KFC helps run a multi-lingual water safety education campaign, showing Kiwis how to stay safe at the beach. + + $160,000 raised for SLSNZ in 2015/16 NZPWG ANITA BOON PRO-AM KFC has been a major sponsor since 2011 of the annual Anita Boon Pro-Am tournament, the first all-women s pro-am event in New Zealand. The 2015 event was cosanctioned by the New Zealand Professional Women Golfers trust and the Australian Ladies Professional Golf tour, with the aim to inspire more young women golfers to follow in the footsteps of Lydia Ko. HEARING HOUSE Pizza Hut supports Loud Shirt Day, the annual appeal of the Hearing House + + Pizza Hut raised $10,000 for the Hearing House in $1 donated from every KFC Surf Safe bucket sold in October and November along with in-store collections over summer 2016 GRAEME DINGLE FOUNDATION The Foundation for Youth Development offers communitybased youth mentoring programmes that help kids transition to secondary school. Its STARS programme is designed to help young people build positive relationships with peers, teachers and older students and to learn life skills, confidence and resilience. + + Carl s Jr. donates 10 cents from every Super Star with Cheese burger to the Foundation + + $15,229 raised for the Stars programme in the 2015/2016 year. 6

7 FOOD Restaurant Brands serves high quality, great tasting food with seasonally and locally sourced ingredients, and we continue to raise our own bar for nutrition and sustainability. 7

8 WELLBEING We recognise that obesity and heart disease are serious health issues in New Zealand. Both the causes and the solutions are complex, requiring everyone to play their part. We continue to focus on improving the nutritional composition of our food, with an emphasis on sodium, sugar and saturated fat reduction. TRANSPARENCY We provide detailed nutritional information online, letting customers know exactly what s in our food so they can choose products that are right for them. We don t advertise our products directly to children and promote carbonated sugar free beverages. SODIUM % reduction in sodium in KFC mayonnaise since % reduction in sodium in KFC BBQ sauce since % reduction of sodium across all KFC products since % overall reduction in sodium in Carl s Jr. fries in % reduction in sodium in Carl s Jr. burger buns in % reduction in sodium in Carl s Jr. chicken tenders since % reduction in sodium across all Carl s Jr. sauces since 2012 SUGAR + + Sugar content in buns and rolls now 3% + + Sugar reduced by 50% in KFC buns and 65% in dinner rolls since 2012 FAT + + Less than 0.1g of trans fat in KFC and Pizza Hut products 8

9 INGREDIENTS We support trusted local suppliers and responsible industry practices in line with our ethical purchasing and procurement policies % of our ingredients are sourced locally. Last year we brought most of our ingredient sourcing for our new Carl s Jr. brand to domestic supply FOOD SAFETY From our trusted suppliers through our kitchens and onto your plate, our food safety system and external audits deliver great-tasting food you can trust. + + All KFC, Pizza Hut and Carl s Jr. stores are routinely audited by Environmental Health Officers to the standard of the Ministry of Primary industries % of our chicken is grain-fed and barn-raised, including KFC s fresh daily supply from Inghams and Tegel. All our chicken is produced to rigorous standards overseen by the Poultry Industry Association New Zealand, the Ministry for Primary Industries and the National Animal Welfare Committee + + Annual audits of all 25 Starbucks stores by Assure Quality using a tailored Starbucks food safety plan + + Starbucks coffee is sourced in accordance with its CAFE (Coffee and Farmer Equity) Practices programme. CAFE is designed to sustain the environmentally and socially responsible production of high-quality coffee and secure a better future for coffee farmers 9

10 PLANET We re conscious of the impact our operations have on the environment. Restaurant Brands is always working to minimise waste, maximise energy efficiency and use resources carefully. 10

11 ` RECYCLING Restaurant Brands is a member of the Public Place Recycling Scheme (PPRS) and is represented on the Steering Committee. PPRS is a voluntary product stewardship programme that helps New Zealanders do the right thing by recycling and reducing litter including plastic, paper, aluminium, glass and organic waste when they re away from home. The scheme received accreditation from the Minister for the Environment in November All our stores sort, compact and collect cardboard and paper for recycling PACKAGING We are working to reduce the number of plastic bags used across our stores. We source all packaging from sustainable timbers. + + All Pizza Hut boxes are made from 100% recycled fibre and are 100% recyclable + + KFC s recyclable packaging is sourced from sustainable timber + + None of our packaging is sourced from Asian pulp and paper % of cardboard and paper from our stores is recycled each week + + Starbucks stores recycle coffee grounds by packaging them for customers to take home as free garden compost WASTE One of our major waste products is cooking oil. All oil used by KFC, Pizza Hut and Carl s Jr. is collected by Transpacific for recycling. Grease traps are installed in all our stores to prevent oil entering the waste water system % of our cooking oil is recycled % is used in the manufacture of Transpacific bio-diesel and green fuels % is exported to make soap ENERGY USE Yum! Brands has set up a world-class operations team to work on energy efficiency opportunities. We in New Zealand benefit from these advances and actively participate in Yum! energy saving initiatives. + + We re always looking to reduce our energy footprint through the way we work, the technology we use and the buildings we develop + + Since 2005 we ve monitored live power usage in our KFC stores to reduce peak load, and encourage employees to turn off equipment when not in use. Further improvements to this system are underway + + We have an in-house system to compare KFC stores sales to their power usage, highlighting any potential inefficiencies in energy use 11

12 PROGRESS Restaurant Brands is the NZXlisted New Zealand operator of some of the world s most famous QSR brands. We continue to proactively and fairly reward our stakeholders. 12

13 Paid $11 million in income tax and $23 million in goods and services tax Paid $20 million in dividends to investors Paid $104 million in salaries and wages Paid $244 million for goods and servicess Paid $21 million in capital expenditure with local suppliers and contractors KFC TRANSFORMATION PROGRAMME + + $98m invested since 2004 including new store builds % of the KFC network now new or transformed stores transformed or upgraded in 2015/2016 CARL S JR. INVESTMENT PROGRAMME + + $18m invested in new stores new stores built since 2012 GROWING PIZZA HUT FRANCHISEE COMMUNITY Pizza Hut stores now owned by local Franchisees STARBUCKS COFFEE REFURBISHMENT PROGRAMME stores received major upgrades 13

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