Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption per square foot by 3% and GHG emissions intensity per square foot by 8% per restaurant from 2015.
• Diverted over 30 million pounds from landfills, and improved our diversion rate by 5% from 2015.
• Reduced virgin plastic to-go footprint by 10%, from 2018 to 2019.

Social Achievements

• Industry-leading staff retention rates.
• Launched The Cheesecake Factory Diploma and Degree Program to give kitchen staff members the opportunity to earn a high school equivalency diploma or an online associate degree at no cost.
• Established our Women’s Network Group to provide female managers with increased mentoring, leadership development and networking opportunities.

Governance Achievements

• Aligned reporting efforts and strategies with several leading frameworks including the United Nations Sustainable Development Goals (UN SDGs), Sustainable Accounting Standards Board (SASB), and the Global Reporting Initiative (GRI).

Climate Goals & Targets

Environmental Challenges

• Waste infrastructure limitations
• Landlord-managed utilities
• Increasing demand for to-go meals and packaging
• Complex supply chain for sustainable sourcing
• Data quality inconsistencies across geographically diverse operations

Mitigation Strategies

• Expanded organic diversion program in more than 65 restaurants
• Redesigned to-go packaging to use less raw materials and improve recyclability
• Implemented a new “zero food waste” technology platform called Copia
• Developed species-specific key performance indicators (KPIs) to standardize and enhance internal and external reporting related to animal welfare
• Collaborated with suppliers and partners to improve sustainable sourcing practices

Supply Chain Management

Supplier Audits: Annual supplier reporting process, third-party audits when feasible

Responsible Procurement

• Sustainable Sourcing Policy
• Sustainability Code of Conduct
• Supplier Implementation Guides

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• New environmental regulations
• Changing consumer demands

Opportunities

• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB, UN SDGs

Certifications: Safe Quality Food (SQF) certified bakeries

Third-party Assurance: Internally assured

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 14: Life Below Water
• Goal 15: Life On Land
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Various initiatives contribute to these goals through community investment, employee well-being programs, sustainable sourcing, and environmental initiatives.

Sustainable Products & Innovation

• GreenBox pizza box
• Redesigned to-go packaging

Awards & Recognition

• 2019 Best Practices Award by TDn2K
• FORTUNE 100 Best Companies to Work For® (six consecutive years)

Environmental Metrics

ESG Focus Areas

• Staff Well-being
• Guest Safety
• Community Support
• Diversity, Equity, Inclusion & Belonging
• Sustainability
• Supply Chain Sustainability

Environmental Achievements

• Reduced GHG emissions (though impacted by restaurant closures)
• Increased landfill diversion rate (over 71,000 cumulative metric tons out of landfill since 2015)
• Decreased energy and water intensity despite business growth
• Achieved 100% cage-free eggs for restaurants and one bakery
• Achieved sourcing sustainably certified palm oil (RSPO)

Social Achievements

• Launched COVID-19 Assistance Program providing over $2 million in grants
• Activated HELP Fund providing over $230,000 in grants
• Covered benefits premiums for 9,000 furloughed staff
• Provided free mental health support to all staff via telehealth
• Provided complimentary daily meals for all staff
• Donated over 20,000 meals to frontline healthcare workers
• Donated over $225,000 in gift cards to communities
• Donated $50,000 to CORE supporting families of restaurant employees
• Implemented Diversity, Equity, Inclusion & Belonging initiatives including listening sessions, Leaders of Color Program, and de-escalation training for managers

Governance Achievements

• Established DEI&B Steering Committee
• Finalized company DEI&B commitment statement
• Implemented Lean-In Circles and Female Kitchen Leaders Advisor Program

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and restaurant closures impacting operations and supply chain
• Supply chain disruptions affecting ingredient sourcing and Sustainable Sourcing goals
• Difficulties in achieving 100% elimination of pig gestation crates due to sourcing challenges
• Data limitations due to pandemic disruptions

Mitigation Strategies

• Implemented COVID-19 safety protocols for staff and guests
• Created new support programs for staff
• Maintained benefits eligibility for furloughed staff
• Partnered with national grocery store and delivery companies for interim job search assistance
• Continued commitment to Sustainable Sourcing Policy and goals despite disruptions
• Expanded reporting to include North Italia

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Sourcing Policy
• Cage-free eggs
• RSPO certified palm oil
• Antibiotic-free meat (progressing)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FORTUNE Magazine’s “100 Best Companies to Work For®” (8 consecutive years)

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Community support
• Diversity, Equity, Inclusion & Belonging
• Sustainable sourcing
• Environmental sustainability
• Climate change

Environmental Achievements

• 20% reduction in restaurant portfolio greenhouse gas emissions (GHG) emission intensity per sq ft since 2015
• 8% increase in waste diversion rate, keeping nearly 10,000 more metric tons out of landfill
• 100% cage-free eggs for domestic restaurants

Social Achievements

• Continued offering expanded sick pay benefits for COVID-19 illness and maintained healthcare benefits at no increased cost to staff
• Provided nearly 4,800 sessions of free mental health counseling
• Donated over 662,000 pounds of food to local non-profits
• Leading retention rates in the industry (almost half the industry average for managers and more than 35 percentage points lower for hourly staff)

Governance Achievements

• Established a diversity, equity, inclusion and belonging (DEI&B) working group
• Conducted an independent pay equity analysis indicating no unexplained base pay gaps by gender or race
• For 2022, a portion of corporate leadership and bonus-eligible staff compensation will be tied to sustainable sourcing policy and climate commitments

Climate Goals & Targets

Environmental Challenges

• Global pandemic impacting operations and supply chain
• High turnover rates in the hospitality industry
• Climate change presenting business risks
• Supply chain disruptions affecting progress on some sustainability goals (e.g., broiler chickens)
• Data limitations on deforestation in the supply chain

Mitigation Strategies

• Implemented COVID-19 vaccination and testing programs, expanded sick pay, and provided mental health support
• Developed programs to improve staff retention (e.g., training, development, career advancement)
• Joined the Science Based Targets initiative (SBTi) and established intent to pursue net-zero GHG emissions by 2050
• Developed alternative sourcing strategies
• Engaged directly with suppliers to improve data collection and address deforestation

Supply Chain Management

Supplier Audits: Ongoing monitoring and audits for compliance with sustainability code of conduct

Responsible Procurement

• Sustainability Code of Conduct
• Sustainable Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient practices

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB, UN Sustainable Development Goals

Certifications: RSPO (palm oil)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)
• Goal 16 (Peace, Justice and Strong Institutions)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals (details in UN SDGs Index)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FORTUNE 100 Best Companies to Work For® (9 consecutive years)
• FORTUNE Best Workplaces for Millennials® (6 consecutive years)
• PEOPLE Companies that Care®

Environmental Metrics

ESG Focus Areas

• Staff Well-being
• Community Engagement
• Diversity, Equity, Inclusion & Belonging
• Sustainable Sourcing
• Environment
• Climate Change

Environmental Achievements

• Reduced GHG emissions by 22% per square foot since 2015
• Diverted over 26% of waste stream through recycling and composting
• Achieved cage-free egg goal three years ahead of schedule for bakery operations and expanded commitment to global licensees by 2030
• Increased gestation crate-free pork sourcing to almost 80%
• Increased sustainable seafood sourcing to 64%

Social Achievements

• Maintained Fortune 100 Best Companies to Work For® ranking for 10 consecutive years
• 93% of staff believe they are treated equitably
• Donated more than 7.3 million pounds of food to over 700 local non-profits
• Donated over $6 million to Feeding America® since 2008
• Provided 369 HELP Fund grants totaling $422,250
• Expanded Diploma and Degree program eligibility to all hourly staff, resulting in a 45% increase in GED enrollments and a 34% increase in GED earners
• Offered free mental health counseling sessions resulting in 2,518 telemedicine visits

Governance Achievements

• Joined the Science Based Targets initiative (SBTi) to pursue Net-Zero by 2050 goal
• Joined the Clean Energy Buyers Alliance (CEBA)

Climate Goals & Targets

Environmental Challenges

• Competitive labor environment
• Supply chain disruptions due to the COVID-19 pandemic, inflation, and geopolitical conflicts
• Data limitations in tracking supplier sustainability performance across all ingredients
• Challenges in achieving 100% NAE (no antibiotics ever) sourcing for dairy and pork due to industry-wide limitations
• Challenges in eliminating gestation crates for pigs and physical alterations for animals due to industry-wide limitations

Mitigation Strategies

• Updated attraction strategy to highlight unique aspects of working at The Cheesecake Factory
• Provided manager interview training
• Implemented various staff well-being programs (healthcare, mental health support, HELP Fund)
• Partnered with HowGood to enhance sustainability data analysis
• Continued collaboration with suppliers to improve animal welfare practices and reduce antibiotic use
• Continued collaboration with industry partners to drive sustainable change

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Sourcing Policy, Sustainability Code of Conduct, partnerships with HowGood and other organizations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and practices

Reporting Standards

Frameworks Used: SASB

Certifications: RSPO (Roundtable for Sustainable Palm Oil)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Impossible Burger, vegan and gluten-free menu items

Awards & Recognition

• Fortune 100 Best Companies to Work For®

Environmental Metrics

ESG Focus Areas

• Climate Change
• Animal Welfare
• Diversity, Equity, Inclusion & Belonging
• Sustainable Sourcing
• Employee Well-being
• Community Engagement

Environmental Achievements

• Reduced overall GHG emissions by 6% from 2022 on an absolute basis
• Reduced absolute electricity usage by 6% and natural gas usage by 3% compared to 2022
• Reduced water usage by almost 2% compared to 2022
• Increased waste diversion rate to 26%

Social Achievements

• Maintained recognition on Fortune 100 Best Companies to Work For® list for 11 consecutive years
• Named to Fortune Best Workplaces for Millennials list for a seventh time and to the PEOPLE Companies that Care list for a third consecutive year
• Achieved an internal promotion rate into management of 41% in 2023
• HELP Fund fulfilled 309 grants for a total of $327,500
• Donated more than $270,000 through gift card donation program
• Donated approximately 646,140 pounds of food to over 450 local non-profits

Governance Achievements

• Established ESG Committee including Legal, Investor Relations, Human Resources, and Sustainability teams
• ESG Committee reports to CEO and President, and raises issues to Board of Directors as appropriate

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions impacting sustainable sourcing goals (e.g., avian flu, pork supply)
• Slow adoption of NAE (no-antibiotics ever) production in dairy and pork industries
• Challenges in transitioning to slower-growing broiler chicken breeds and practices
• Insufficient data on deforestation-free sourcing for some produce, cocoa, coffee, and tea ingredients

Mitigation Strategies

• Partnering with suppliers to improve responsible antibiotic use and move towards NAE
• Working to better understand welfare implications and management practices for slower-growing broiler chickens
• Expanding partnerships with HowGood to gain deeper insights into supply chain sustainability
• Committing to no deforestation across primary deforestation-linked commodities by 2025 (SBTi target)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainability Code of Conduct
• Sustainable Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• New environmental regulations
• Changing consumer demands

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB Standards

Certifications: Safe Quality Food (SQF)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Fortune 100 Best Companies to Work For
• Fortune Best Workplaces for Millennials
• PEOPLE Companies that Care