Climate Change Data

Environmental Metrics

ESG Focus Areas

• Craveable Food
• Ally for Wellness
• Everyday Oasis
• Relationships & Warmth

Environmental Achievements

• Estimated 17 percent reduction in energy usage between 2010 and 2014 through energy conservation behaviors and efficient lighting.
• Reduced transportation impacts by partnering with a supplier to consolidate orders and reduce delivery truck trips.
• Switched from canned tuna to vacuum-packed pouches, reducing wastewater and water used for rinsing.

Social Achievements

• Launched Panera 2.0, a new initiative using technology to enhance the guest experience.
• Increased labor model by 30 hours per week in each location to address associate feedback about feeling stretched.
• Introduced a comprehensive discount program including fitness and other healthy lifestyle resources for associates.

Governance Achievements

• Launched Panera’s Food Policy, outlining commitments to clean ingredients, transparency, and positive impact on the food system.
• Established an ethics hotline for associates to report concerns related to business conduct.

Climate Goals & Targets

Environmental Challenges

• Climate change risks to the business, including disruptions in sourcing ingredients and adverse weather events.
• Limited availability of commercial composting services for food waste.
• Guest confusion over recyclable packaging items.

Mitigation Strategies

• Developing an environmental strategy to reduce GHG emissions and energy use.
• Implementing Day-End Dough-Nation program to donate leftover food to charities.
• Working to increase the number of bakery-cafes offering recycling where services are available and improving associate training on waste disposal.

Supply Chain Management

Supplier Audits: 92% of major vendors are GFSI certified or in the process of certification.

Responsible Procurement

• Working with suppliers to ensure quality, taste, freshness, and alignment with company standards.
• Engaging with suppliers on sustainable agriculture practices and sustainable palm oil sourcing.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events impacting ingredient sourcing and transportation.

Transition Risks

• Higher commodity prices due to droughts and floods.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines at the Core level

Certifications: null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Broth Bowls
• Flatbread Sandwiches
• Sprouted grain bread products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community Investments
• Sustainable Design
• Associate Well-being
• Associate Compensation & Benefits
• Animal Welfare
• Accessibility & Affordability of Good Food
• Associate Engagement & Retention
• Transparency
• Diversity & Inclusion
• Data Security & Consumer Privacy
• Waste
• Sustainable Packaging
• Associate Development & Growth
• Sustainably Grown
• Climate Change
• Food Safety
• Food Quality
• Nutrition
• Operational Water Use

Environmental Achievements

• Reduced electricity use intensity per bakery-cafe by 6% between 2016 and 2019.
• Increased recycled packaging material to 30% in 2019.
• Increased recyclable, reusable or compostable packaging material to 73% in 2019.

Social Achievements

• Improved associate engagement and retention through initiatives detailed in the report.
• Increased percentage of associates receiving regular performance reviews from 34% in 2017 to 49% in 2019.
• Committed to improving welfare for broiler chickens.

Governance Achievements

• Maintained a confidential ethics hotline for associate reporting of ethics concerns.

Climate Goals & Targets

Environmental Challenges

• Increased total energy consumption due to business growth.
• Supply chain disruptions due to potential severe weather events or changes in weather patterns.
• Regulatory risks related to carbon regulation.

Mitigation Strategies

• Proactive identification and addressing of hazards to prevent workplace incidents.
• Working with suppliers to improve agricultural practices and reduce negative environmental impacts.
• Exploring opportunities to improve long-term planning with uniform carbon regulation.

Supply Chain Management

Responsible Procurement

• Code of Conduct applying to all suppliers and vendors, outlining environmental and human rights expectations.

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions or fluctuations in commodity prices or availability
• Disruptions to goods transport
• Damage to facilities
• Loss of power
• Reduction in guest traffic

Transition Risks

• Carbon regulation impacting costs

Opportunities

• Milder climates extending growing seasons
• More suppliers adopting sustainable practices
• Uniform carbon regulation improving long-term planning
• Increased consumer trust and affinity

Reporting Standards

Frameworks Used: GRI Standards: Core option

Environmental Metrics

ESG Focus Areas

• Community Investments
• Sustainable Design
• Associate Well-being
• Associate Development & Growth
• Animal Welfare
• Accessibility & Affordability of Good Food
• Workplace Culture
• Transparency
• Data Security & Consumer Privacy
• Waste
• Sustainable Packaging
• Associate Compensation & Benefits
• Diversity, Equity & Inclusion
• Climate Change
• Food Safety
• Food Quality
• Nutrition
• Operational Water Use
• Sustainably Grown

Environmental Achievements

• Reduced energy intensity (GJ/sq. ft.) from 0.66 in 2018 to 0.58 in 2020. Achieved reductions in energy consumption as a direct result of conservation and efficiency initiatives (GJ): 57,668 in 2018, 148,029 in 2019, 342,187 in 2020.
• 100% of palm oil sourced from RSPO certified sources or equivalent.

Social Achievements

• Updated Supplier Code of Conduct to emphasize protections and rights of farm workers; 81% of suppliers complied by end of 2020.
• Provided training on safety procedures during the pandemic and trainings to support the transition to a new cafe operating model.

Governance Achievements

• Maintained a confidential ethics hotline for associate reporting of ethics concerns.

Climate Goals & Targets

Environmental Challenges

• COVID-19 temporarily closed 199 company-owned bakery-cafes and one FDF, and permanently closed 56 bakery-cafes.
• Risks to business due to climate change including physical risks (ingredient availability, transport disruptions, damage to facilities, loss of power, reduced guest traffic, potential health impacts) and regulatory risks (carbon regulation).

Mitigation Strategies

• Temporarily closed and permanently closed some bakery-cafes due to COVID-19. Opened 13 new bakery-cafes and relocated five.
• Sustainability efforts to build consumer trust and affinity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring adherence to human rights standards and environmental expectations.

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions or fluctuations in yield or availability of ingredients
• Disruptions to the transport of goods
• Damage to bakery-cafes, Support Centers and FDFs
• Loss of power
• Reduction in guest traffic
• Potential health impacts on employees and guests

Transition Risks

• Carbon regulation could impact costs

Opportunities

• Uniform carbon regulation would improve long-term planning opportunities
• Sustainability efforts could build consumer trust and affinity

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Animal Welfare
• Climate Change
• Diversity, Equity & Inclusion
• Sustainable Packaging
• Sustainable Design
• Associate Well-being
• Community Investments
• Waste
• Nutrition
• Food Quality
• Food Safety
• Data Security & Consumer Privacy
• Operational Water Use
• Workplace Culture
• Associate Compensation & Benefits
• Associate Development & Growth
• Transparency
• Accessibility and Affordability of Good Food

Environmental Achievements

• Reduced GHG emissions (Scope 1 & 2) from 259,298 MT CO2e in 2016 to 216,515 MT CO2e in 2021
• Reduced energy intensity (electricity, natural gas & diesel) from 0.66 GJ/sq ft in 2016 to 0.54 GJ/sq ft in 2021
• Increased percentage of recycled input materials in to-go packaging from 30% in 2019 to 52% in 2021
• Increased total recyclable, reusable or compostable to-go packaging from 64.4% in 2019 to 69.6% in 2021

Social Achievements

• Increased percentage of women in workforce from 58% in 2019 to 63% in 2021
• Increased percentage of BIPOC in workforce from 47% in 2019 to 49% in 2021
• 100% of chicken, turkey, and pork sourced in 2021 were raised without antibiotics
• 100% of eggs used in breakfast sandwiches were cage-free in 2021

Governance Achievements

• Board of Directors conducts annual review and approval of ESG strategy
• ESG strategy includes tracking and monitoring progress toward reduction of the corporate carbon footprint

Climate Goals & Targets

Environmental Challenges

• Extreme weather events resulting in limited availability or interrupted supply of purchased goods
• Rising cost of menu items reducing the broad affordability of Panera’s products
• Increased demand from investors for corporate climate targets
• New duties and taxes placed on carbon-intensive transportation

Mitigation Strategies

• Developing risk management plans
• Increasing supply chain transparency
• Diversifying suppliers
• Strengthening Panera’s Supplier Code of Conduct

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Rising cost of menu items
• Increased demand from investors for corporate climate targets
• New duties and taxes placed on carbon-intensive transportation

Opportunities

• Bolstering brand reputation
• Supply chain resilience

Reporting Standards

Frameworks Used: GRI Standards: Core level, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Cool Food Meals

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Food
• Environment
• Communities
• Associates
• Governance

Environmental Achievements

• Removed intentionally added PFAS from all to-go packaging
• Added How2Recycle label to 88% of branded packaging (55% by weight)
• Hurricane Ian preparedness ensured continued tomato supply despite crop damage

Social Achievements

• Donated over $85 million in unsold baked goods through Day-End Dough-Nation® program
• Increased women representation on the board of directors to 40% in 2022 from 23% in 2021 and 8% in 2020

Governance Achievements

• Increased women representation on the board of directors to 40% in 2022 from 23% in 2021 and 8% in 2020

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (e.g., Hurricane Ian)
• Avian influenza outbreak impacting raised-without-antibiotic turkey supply

Mitigation Strategies

• Emergency contingency plans and backup supply options for fresh dough facilities
• Prioritization of multi-sourcing of key ingredients
• Transparent communication to guests regarding supply chain issues

Supply Chain Management

Responsible Procurement

• Sourcing cage-free eggs, poultry raised without antibiotics, and pork from farms meeting specific welfare standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting supply chains

Reporting Standards

Frameworks Used: Science Based Targets initiative