Climate Change Data

The Wendy’s Company

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:14,214 MTCO2e (Scope 1) + 55,035 MTCO2e (Location-Based Scope 2) + 54,400 MTCO2e (Market-Based Scope 2) + (Scope 3 data pending)
Scope 1 Emissions:14,214 MTCO2e
Scope 2 Emissions:109,435 MTCO2e
Renewable Energy Share:0%
Total Energy Consumption:733,971 GJ
Water Consumption:226,546 kgal (withdrawn), 35,525 kgal (consumed)

ESG Focus Areas

  • Food
  • People
  • Footprint

Environmental Achievements

  • Reduced GHG emissions by 6.3% from 2019 levels
  • Achieved a 15% reduction in energy per square foot for Company operations against the 2012 baseline.
  • Achieved a 15% reduction in water use against the 2018 baseline.

Social Achievements

  • Celebrated the Dave Thomas Foundation for Adoption’s 10,000th adoption.
  • Donated $500,000 to advance social justice, youth, and education in the Black community.
  • Launched Wendy’s Animal Care Standards Program.
  • Achieved a 100 score on the Human Rights Campaign’s 2020 Corporate Equality Index.

Governance Achievements

  • Completed the first-ever comprehensive materiality assessment.
  • Established a dedicated Corporate Social Responsibility (CSR) Committee.

Climate Goals & Targets

Long-term Goals:
  • Responsibly source top 10 priority food categories by 2030
  • 100% of U.S. and Canadian beef, chicken, and pork sourced from suppliers that prohibit routine use of medically important antibiotics by 2030
Medium-term Goals:
  • Reduce energy consumption in Company-operated restaurants by 20% per transaction by 2025 (Better Buildings Challenge)
  • Reduce water use in U.S. Company restaurants by 20% by 2029 (Better Buildings Water Challenge)
  • Sustainably source 100% of customer-facing packaging by 2026
Short-term Goals:
  • Benchmark and report 2020 total Scope 1 and 2 GHG emissions to CDP by end of 2021
  • Conduct a lifecycle assessment on Scope 3 by end of 2021
  • Commit to Science-Based Target initiative and begin developing a target for Scopes 1, 2, and 3 by end of 2021
  • Report total Scope 1 and 2 GHG emissions in 2021 CSR Report by end of 2022
  • Report findings of Scope 3 lifecycle assessment by end of 2022
  • Report total Scope 1, 2, and 3 GHG emissions and track reduction progress by end of 2023
  • Validate science-based target with Science-Based Target initiative and publicly disclose the target by end of 2023

Environmental Challenges

  • Global pandemic impact
  • Social awakening requiring critical thinking about diversity, equity, and inclusion.
Mitigation Strategies
  • Prioritized health, safety, and well-being of teams and customers.
  • Implemented enhanced order safety precautions, supported truck drivers, provided PPE, reinforced handwashing, increased deep cleaning, and introduced social distancing.
  • Created and modified benefits to support employee challenges.
  • Established new strategic external partnerships to address systemic racism.

Supply Chain Management

Responsible Procurement
  • Wendy’s Code of Conduct
  • Progressive Beef
  • Beef Quality Assurance
  • Professional Animal Auditor Certification
  • National Chicken Council Animal Welfare
  • Raised Without Antibiotics Important to Human Medicine
  • Pork Quality Assurance Plus
  • Marine Stewardship Council
  • National Dairy FARM Program
  • Rainforest Alliance
  • Roundtable on Sustainable Palm Oil

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, GRI, SASB

Awards & Recognition

  • Energy Efficiency Innovation Award by AEP Ohio
  • Global Best Practice winner for employee retention by Black Box Intelligence

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:75,273 MTCO2e (Scope 1 & 2 location-based)
Scope 1 Emissions:15,053 MTCO2e
Scope 2 Emissions:60,220 MTCO2e (location-based), 61,578 MTCO2e (market-based)
Scope 3 Emissions:~89% Purchased Goods & Services, ~10% Franchises
Renewable Energy Share:<1%
Total Energy Consumption:733,590 GJ
Water Consumption:159,646 kgal (withdrawn)
Waste Generated:92,459 metric tons (packaging)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Food
  • People
  • Footprint

Environmental Achievements

  • Achieved a 17% reduction in energy per square foot for Company operations against a 2012 baseline.
  • Achieved a 25% reduction in water use in U.S. Company-operated restaurants against a 2018 baseline.
  • Increased the percentage of packaging meeting sustainable sourcing goals from 44% in 2020 to 48% in 2021.
  • Avoided using more than 2.5 million gallons of irrigation water through a smart irrigation system pilot.

Social Achievements

  • Established the Office of Diversity, Equity and Inclusion.
  • Supported First Women’s Bank as a Mission Partner to expand economic opportunities for women-owned businesses.
  • Raised over $22.5 million for the Dave Thomas Foundation for Adoption®.
  • Introduced enhanced Food Safety Assessment program, completing approximately 9,800 global assessments.

Governance Achievements

  • Expanded the scope of its Compensation Committee to become the Compensation and Human Capital Committee, adding oversight of the Company’s human capital management strategies and policies, including Diversity, Equity and Inclusion.
  • Reported 2020 data to CDP Climate Change Disclosure for the first time.
  • Linked a portion of executives’ 2022 incentive compensation to achievements in Food, People, and Footprint focus areas.

Climate Goals & Targets

Long-term Goals:
  • Responsibly source top 10 priority food categories by 2030.
  • Source 100% of U.S. and Canadian beef, chicken, and pork from suppliers that prohibit routine use of medically important antibiotics by 2030.
  • Have a comprehensive accounting of animal welfare best practices for beef, pork, chicken, eggs, and dairy by the end of 2024.
Medium-term Goals:
  • Reduce energy consumption in Company-operated restaurants by 20% per transaction by 2025.
  • Reduce water use in U.S. Company-operated restaurants by 20% by 2029.
  • Report Scope 1, 2, and 3 GHG emissions and track reduction progress by end of 2023.
  • Sustainably source 100% of customer-facing packaging in the U.S. and Canada by 2026.
Short-term Goals:
  • Transition pork supply chain away from sow gestation stalls by end of 2022.
  • Report on Scope 1 and 2 GHG emissions in 2021 CSR Report.
  • Report on findings of Scope 3 lifecycle assessment by end of 2022.

Environmental Challenges

  • Challenging supply chain environment
  • Industry disruptions and macroeconomic challenges impacting protein supply chains
  • Scope 3 emissions accounting for approximately 99% of emissions attributable to Wendy’s
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented the Wendy’s Animal Care Standards Program
  • Completed a third-party lifecycle assessment to identify areas for Scope 3 emission reduction
  • Committed to the Science Based Targets initiative to address Scope 1, 2, and 3 GHG emissions
  • Expanded partnerships with energy management company GridPoint® and implemented Transformative Wave® HVAC upgrades

Supply Chain Management

Supplier Audits: Approximately 9,800 global Food Safety Assessments completed.

Responsible Procurement
  • Wendy’s Code of Conduct
  • Progressive Beef program
  • Beef Quality Assurance
  • Professional Animal Auditor Certification
  • National Chicken Council Animal Welfare
  • Raised Without Antibiotics Important to Human Medicine
  • Pork Quality Assurance Plus
  • Marine Stewardship Council
  • National Dairy FARM Program/ProAction
  • Rainforest Alliance
  • Roundtable on Sustainable Palm Oil

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Renewable energy procurement
  • Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, CDP

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • New beverage cups with increased recyclability
  • Hot & Crispy Fries

Awards & Recognition

  • Forbes’ list of world’s 300 most female-friendly companies
  • Human Rights Campaign’s Best Place to Work for LGBTQ Equality
  • Columbus Urban League’s 2021 Honda Empowerment Day award

Reporting Period: 2022

Environmental Metrics

Scope 1 Emissions:14,404.56 mtCO2e
Scope 2 Emissions:56,478.21 mtCO2e
Scope 3 Emissions:9,639,630 mtCO2e
Renewable Energy Share:1%
Total Energy Consumption:775,065 GJ
Water Consumption:200,003 kgal (withdrawn), 31,940 kgal (consumed)

ESG Focus Areas

  • Food
  • People
  • Footprint

Environmental Achievements

  • Reduced Scope 1 and 2 emissions by 16% compared to 2019 baseline.
  • Achieved 34% of Scope 1 and 2 emissions reduction goal.
  • Made progress against Scope 3 targets, achieving nearly 40% of franchise reduction goal and more than 6% of purchased goods and services reduction goal.
  • Surpassed the halfway mark on the goal of sustainably sourcing 100% of customer-facing packaging by 2026.
  • Rolled out clear plastic drink cups that are more recyclable to all markets.

Social Achievements

  • Raised more than $19 million for the Dave Thomas Foundation for Adoption.
  • Increased diversity of representation among management and leadership.
  • Introduced a new Employee Resource Group, GiveCare, to support employee caregivers.
  • Nearly doubled new, approved franchise candidates through the Own Your Opportunity initiative.
  • Received recognition from McKinsey & Company and LeanIn.org’s 2022 Women in the Workplace Study for meeting all recommended DE&I actions.

Governance Achievements

  • Linked executive compensation to Good Done Right performance.
  • Extended this incentive to all bonus-eligible employees.
  • Completed a comprehensive ESG-focused stockholder outreach campaign.

Climate Goals & Targets

Long-term Goals:
  • Have a FLAG emissions goal in place by the end of 2024.
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 GHG emissions by 47% by 2030 (from 2019 baseline).
  • Reduce Scope 3 GHG emissions from purchased goods and services by 47% per metric ton of goods by 2030 (from 2019 baseline).
  • Reduce Scope 3 GHG emissions from franchises by 47% per restaurant by 2030 (from 2019 baseline).
  • Sustainably source 100% of customer-facing packaging in the U.S. and Canada by 2026.
Short-term Goals:
  • Reduce energy used by Company-operated restaurants and RSC by 20% per transaction by 2025 (from 2012 baseline).

Environmental Challenges

  • Lagging composting and recycling infrastructure for foodservice packaging.
  • Need for greater visibility into antibiotic use further upstream in beef and pork supply chains.
  • Managing climate-related risks and opportunities across operations and supply chains.
Mitigation Strategies
  • Working with Closed Loop Partners’ NextGen Consortium to improve packaging recyclability and infrastructure.
  • Implementing the Wendy’s Animal Care Standards Program to increase visibility into supply chains and identify areas for improvement.
  • Setting science-based targets for GHG emissions reductions and implementing energy efficiency projects.

Supply Chain Management

Supplier Audits: Approximately 775 audits conducted in 2022 (mix of Wendy’s-led and third-party audits).

Responsible Procurement
  • Wendy’s Supplier Code of Conduct
  • EcoVadis sustainability performance assessments
  • Progressive Beef program for beef sourcing
  • Certified-sustainable coffee sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, SBTi, UN Sustainable Development Goals

Sustainable Products & Innovation

  • Global Next Gen restaurant design with energy-efficient features.

Awards & Recognition

  • QSR Magazine: Best Restaurant Brands to Work For
  • Forbes: World’s Best Employers 2022
  • Human Rights Campaign (HRC): Best Place to Work for LGBTQ+ Equality
  • Ecolab: 2022 Good Done Right Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:62,450 tCO2e/year (Scope 1+2)
Scope 1 Emissions:13,013 tCO2e/year
Scope 2 Emissions:49,436.58 tCO2e/year
Scope 3 Emissions:10,045,954 tCO2e/year
Renewable Energy Share:5%
Total Energy Consumption:743,840 GJ/year
Water Consumption:140,520 kgal/year (withdrawn)

ESG Focus Areas

  • Food
  • People
  • Footprint

Environmental Achievements

  • Reduced Company emissions (Scopes 1 and 2) by 26% and franchisee emissions (Scope 3) by 11%, both from a 2019 base year.
  • Started transition to fry cartons with Sustainable Forestry Initiative's (SFI) "certified sourcing" standard.
  • Began sourcing clean energy through Florida Power and Light's SolarTogether® community solar program in Florida, and signed on with community solar provider Ampion.

Social Achievements

  • Provided record support of the Dave Thomas Foundation for Adoption during the annual Frosty Boo! Books campaign, which raised an unprecedented $9.2 million across the Wendy’s System.
  • Recognized in the U.S. and Canada for industry-leading franchisee support and training.
  • Increased the diversity of representation among senior leadership at the Company, and received recognition from McKinsey & Company and LeanIn.org’s 2023 Women in the Workplace Study.

Governance Achievements

  • Completed a CEO succession by appointing Kirk Tanner as Wendy's new President and CEO, and elected Mr. Tanner to serve on the Board.
  • Elected two new members to the Board in 2023.
  • Created the position of lead independent director in October 2023.

Climate Goals & Targets

Long-term Goals:
  • Source 100% of our U.S. and Canadian beef, chicken and pork from suppliers that prohibit the routine use of medically important antibiotics by 2030
  • Sustainably source 100% of our customer-facing packaging in the U.S. and Canada by 2026
Medium-term Goals:
  • Responsibly source our top 10 priority food categories in the U.S. and Canada by 2030
  • Increase the representation of underrepresented populations among our Company’s leadership and management, as well as the diversity of our franchisees by 2025
  • Compared to a 2019 base year, reduce absolute Scope 1 and 2 greenhouse gas emissions by 47% by 2030
  • Compared to a 2019 base year, reduce Scope 3 greenhouse gas emissions intensity by 47% per metric ton of purchased goods by 2030
  • Compared to a 2019 base year, reduce Scope 3 greenhouse gas emissions intensity by 47% per franchise restaurant by 2030
Short-term Goals:
  • Reduce energy consumption in Company-operated restaurants by 20% per transaction, from a 2012 baseline by 2025
  • Have a comprehensive accounting of animal welfare best practices for beef, pork, chicken, eggs and dairy through the Wendy’s Animal Care Standards Program by 2024

Environmental Challenges

  • Measuring current antibiotic use and reductions remains a challenge in the beef and pork supply chains.
  • Retrieving utility data at scale is a challenge for franchisees.
  • Establishing pathways to drive emissions reductions across our PG&S emissions reduction goal is challenging due to the complex nature of our supply chain.
Mitigation Strategies
  • Enhanced visibility and access upstream in the beef and pork supply chains to develop new pathways toward antibiotic reduction goal.
  • Support franchisees in overcoming data retrieval barriers through the Wendy's Energy Challenge.
  • Engaging with suppliers in scope for Wendy’s responsible sourcing goal to identify ways to reduce emissions.

Supply Chain Management

Supplier Audits: More than 850 assessments and audits of suppliers’ facilities in the U.S. and Canada

Responsible Procurement
  • Responsible Sourcing Guide for all in-scope suppliers
  • EcoVadis digital platform for supplier assessments
  • Global specification and document management system (Specright)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs

Awards & Recognition

  • Top 50 Enterprise Franchise (Franchise Business Review)
  • Two Franchisees’ Choice Designation awards (Canadian Franchise Association)