Climate Change Data

Collins Foods Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:65,926 tCO2e/year
Scope 1 Emissions:2,859 tCO2e/year
Scope 2 Emissions:63,067 tCO2e/year
Renewable Energy Share:2%
Total Energy Consumption:334,897 MWh/year
Waste Generated:12,626 tons/year

ESG Focus Areas

  • People and Communities
  • Planet
  • Governance

Environmental Achievements

  • Reduced Scope 1 and 2 GHG emissions: FY22: 65,926 tonnes CO2-e (FY21: 68,613 tonnes CO2-e)
  • Reduced average energy consumption per restaurant: FY22: 1,192 GJ (FY21: 1,257 GJ)
  • Installed 89 additional solar panel systems in drive-thru restaurants
  • Waste diversion rate of 18.3%

Social Achievements

  • Workplace Giving Program contributed over $6 million to charitable organisations
  • Collins Foods Giving Participation Rate increased to 36% in FY22 (from 27% in FY21)
  • Launched domestic violence awareness and support program
  • Established four working groups under Diversity and Inclusion Council (LGBTQI+, Disability, Multicultural, and Equality)
  • 566 traineeships with 307 completed in FY22 (FY21: 518 with 290 completed)
  • Reduced lost-time injury rate from 14.20 in FY21 to 11.68 in FY22

Governance Achievements

  • Updated Audit and Risk Committee Charter to include sustainability as a Committee responsibility

Climate Goals & Targets

Medium-term Goals:
  • Reduce our carbon footprint by achieving a 25% reduction in greenhouse gas emissions by 2026 compared to FY21
  • Increase diversion of waste from landfill by 25% by 2026 compared to FY22
  • Establish Collins Foods Giving as a best-in-class signature program with 75%+ Participation Rate by 2026

Environmental Challenges

  • Reducing energy consumption in restaurants despite unsuitable trials of voltage optimisers and low-flow exhaust hoods
  • Improving waste diversion rate from landfill
  • Data limitations in waste collection reporting (estimated vs. measured weights)
Mitigation Strategies
  • Continued pursuit of multiple potential avenues for energy reduction
  • Reviews of bin room configuration and deep dive into General Waste contents
  • Trial for collection of organic waste to be processed into fertiliser
  • Transitioning from single-use plastics
  • Partnering with One Tree Planted to plant trees

Supply Chain Management

Responsible Procurement
  • Yum! Approved Supplier Audit Standards
  • KFC Australia franchisor code of conduct for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: HACCP

Third-party Assurance: PricewaterhouseCoopers

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:60,776 tonnes CO2-e (FY22: 65,926 tonnes CO2-e)
Total Energy Consumption:1,177 GJ/restaurant (FY22: 1,226 GJ/restaurant)
Waste Generated:13,297 tonnes (FY22: total not specified)

ESG Focus Areas

  • Safety
  • Employee Wellbeing
  • Community Investment
  • Workforce Diversity
  • Renewable Energy
  • Waste Reduction
  • Greenhouse Gas Emissions
  • Governance

Environmental Achievements

  • Reduced greenhouse gas emissions by 12.7% in FY23, down 20.3% since FY21, despite network growth. Installed 162 solar panel systems (164 at time of report writing). Waste diversion rate of 19.5% (FY22: 18.3%). Organics waste diversion launched at 23 stores. Planted over 7,000 trees in FY23.
  • Reduced average energy consumption per restaurant: FY23: 1,177 GJ (FY22: 1,226 GJ)

Social Achievements

  • Maintained a 36% participation rate in Collins Foods Giving. Collins Family Fund granted over $275,000. Equitable employee profile: 47.4% female, 51.9% male, 0.7% non-binary, intersex or preferred not to say. 577 traineeships with 371 completed in FY23 (FY22: 566 with 307 completed). Expanded participation in Food Recovery. Extended wellbeing strategy to include EAP Ambassadors. Introduced the first Collins Psychosocial Questionnaire. Introduced Career Corridors to support career pathways.
  • Launched Ownership Share Plan for Restaurant Managers and Restaurant Support Centre employees.

Governance Achievements

  • Continued progress towards best-practice governance standards. Appointed a Group ESG & Sustainability Manager. Partnering with EY Australia on a materiality assessment and climate risk assessment and action plan aligned with TCFD recommendations.

Climate Goals & Targets

Medium-term Goals:
  • Increase diversion of waste from landfill by 25% by 2026 compared with FY22.
Short-term Goals:
  • Establish Collins Foods Giving as a best-in-class signature program by 2026 with 75%+ Participation Rate.
  • Reduce carbon footprint by 25% by 2026 compared to FY21.

Environmental Challenges

  • Significant cost pressures from inflation and macroeconomic factors impacting consumers, affecting all brands.
  • Margin pressures from cost inflation (supply chains, labor).
  • Taco Bell brand consolidation to refocus on same-store sales.
Mitigation Strategies
  • Operational efficiencies and cost mitigation initiatives.
  • Value-led marketing campaigns.
  • Investing in marketing activities and campaigns for Taco Bell.
  • Initiatives across energy, supply chain, and menu pricing to mitigate inflationary pressures.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Floods, drought, cyclones, bushfires

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

  • KFC Europe Franchisee of the Year (Western Europe business unit)