Climate Change Data

Environmental Metrics

ESG Focus Areas

• Food sourcing
• Nutrition
• Allergens
• Salt reduction
• Healthier options
• Food safety
• Responsible alcohol service
• Diversity & Inclusion
• Employee engagement
• Community investment
• Environmental awareness (energy, waste, water)

Environmental Achievements

• Greenhouse gas emissions per £m turnover reduced by 0.26% through behavioral change programs and investment in energy efficiency.
• Rollout of energy-efficient fluorescent fittings in back-of-house areas.
• Rollout of smart heating controls to cut down on wasteful heating costs.
• Installation of energy efficiency technologies in Orchid conversion sites (LED lighting, intelligent timers, etc.).
• Annual water consumption saving of 13.9 million liters through water-saving appliances.

Social Achievements

• Retail staff turnover fell to a new historical low of 76%.
• Created c. 1,400 new jobs by opening new retail sites.
• Launched a new three-year Hospitality Management Development program.
• Launched a new youth attraction strategy.
• Partnership with Believe in Young People, offering work experience places.
• Enhanced skills-based apprenticeships.
• Raised nearly £20,000 for charities through the Good Cause Fund and employee donations.
• Raised almost £19,000 for Marie Curie Cancer Care.
• Heartland estate raised £165,000 for Cancer Research UK.
• Crown Carveries offered Armed Forces personnel a 10% discount.
• Raised around £132,000 for the Royal British Legion Poppy Appeal.
• Harvester restaurants donated over £46,000 to Make-A-Wish UK.

Governance Achievements

• Appointment of Stewart Gilliland as Senior Independent Director.
• Appointment of Josh Levy to the Board.
• Adoption of a Board Diversity Policy.
• Externally facilitated review of the Board’s effectiveness.

Climate Goals & Targets

Environmental Challenges

• Challenging and competitive market with new supply and demanding consumer expectations.
• Further cost inflation expected with the introduction of the living wage.
• Increasing competition, particularly impacting Harvester and Toby Carvery sites.
• More demanding consumers with rising expectations on quality, environment, value, and offers.
• Reducing alcohol consumption and a trend towards health consciousness.
• Impact of the National Living Wage on operational costs.

Mitigation Strategies

• Focus on the most attractive market spaces.
• Development of superior brand propositions.
• Recruitment, retention, and development of engaged employees.
• Generation of high returns on investment through scale advantage.
• Maintenance of a sound financial base.
• Implementation of outputs from consumer research to refine brand positioning.
• Use of online guest satisfaction surveys to collect feedback.
• Leveraging scale to drive competitive cost advantage and collaborate with suppliers.
• Energy procurement strategy to reduce risk of cost increases.
• Energy management team to optimize energy usage.
• Focus on productivity and efficiency opportunities, including technology and reviewing brand service models.
• Opportunities to increase guest spend per head and tactical price opportunities.
• Monitoring the relevance of offers and responding to changes in consumer demand.
• Crisis and continuity plans tested and refreshed regularly.
• Detailed review of risks associated with the National Living Wage and implementation of mitigating actions.
• Improving and extending breakfast offerings.
• Trialing new Heartland concepts.
• Upgrading digital capability to enhance communication with guests.
• Developing market research to enhance offerings.
• Encouraging innovation and new product development.

Supply Chain Management

Supplier Audits: Regular safety and quality audits; all food suppliers required to comply with British Retail Consortium’s technical standard.

Responsible Procurement

• Working closely with trusted suppliers to source high-quality ingredients.
• Strengthening relationships with UK growers and working directly where possible.
• Cattle Scheme working with 21 farmers.
• Using British strawberries, potatoes, chicken, and beef.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK Corporate Governance Code

Third-party Assurance: Deloitte LLP

Awards & Recognition

• 'Food Service Operator of the Year' at the 2015 British Turkey Awards

Environmental Metrics

ESG Focus Areas

• Environmental matters
• Employees
• Social matters
• Respect for human rights
• Anti-corruption and anti-bribery matters

Environmental Achievements

• Reduced GHG emissions per £m turnover by 10.8% during the 2017/18 tax year compared to 2016/17.
• Removed plastic straws from service, reducing straw usage by approximately 50% in FY 2018.
• 98% of businesses were rated good or very good for food hygiene.

Social Achievements

• Overall median Gender Pay Gap reduced to 4.7% from 5.2% the previous year.
• Management level turnover improved by 2.6ppts.
• Kitchen management turnover reduced by 3.1ppts.
• Apprenticeship programme expanded, with c. 1,800 team members participating.
• All-time high in employee engagement survey results.
• Raised over £34,000 for Birmingham Children’s Hospital over a three-year partnership.
• Toby Carvery donated over 6,270 meals to military personnel on Armed Forces Day.
• All Bar One donated over £49,000 to homeless charity, Shelter.

Governance Achievements

• Improved social media response rate to 93% (from 83% in FY 2017).
• Established a Diversity and Inclusion Steering Group.

Climate Goals & Targets

Environmental Challenges

• Declining sales performance due to consumer confidence concerns, increased personal debt, disposable income squeezes, and rising inflation.
• Cost of goods price increases due to changes in demand, legislation, exchange rates, and production costs.
• Brexit-related risks, including increased costs, reduced availability of goods, and restrictions on the free movement of labor.
• Increased costs associated with the National Living Wage.
• Risk of borrowing covenants being breached.
• Pension fund deficit.
• Inadequate disaster recovery plans and information security processes.
• Potential for major health and safety failures.
• Risk of food supply chain safety issues, including allergen concerns.

Mitigation Strategies

• Brand alignment, daily sales reporting, consumer insight, Eat Drink Share panel, primary research, supplier collaboration, sales training, consumer/insight-led innovation.
• Food Procurement Strategy, full category reviews, regular inflation reporting, good supplier relationships, strategic sourcing plans, supplier collaboration programs, plans to mitigate Sugar Tax, buying ahead to mitigate Brexit.
• Significant investment in training, annual employee surveys, competitive remuneration packages, talent review process, apprenticeship program.
• Crisis and continuity plans, regular testing and refreshing of plans, departmental Business Continuity Plan revisions, off-site back-up facility testing.
• Robust health and safety checks, Safety Assurance team, regular independent audits, Primary Authority Partnerships.
• Robust food safety procedures, detailed product specifications, regular supplier audits, comprehensive health and safety training programs.
• Daily cash forecasting, Treasury Committee reviews, regular covenant compliance testing, annual property valuation, detailed assessment within the long-term viability statement, additional pension contributions.
• Headroom against covenants, daily cash forecasting, periodic reviews at the Treasury Committee, regular forecasting and testing of covenant compliance, frequent communication with the Securitisation Trustee, annual property valuation, detailed assessment within the long-term viability statement.

Supply Chain Management

Supplier Audits: Regular safety and quality audits

Responsible Procurement

• Sourcing Policy for meat, poultry, and finfish
• Commitment to Public Health England’s Sugar Reduction programme
• Updated Antibiotics Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme cold/snow conditions
• Unusually hot weather

Transition Risks

• Regulatory changes (e.g., Sugar Tax)
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UK Corporate Governance Code

Certifications: Null

Third-party Assurance: Deloitte LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Place to Work at HR Distinction Awards
• Winner of Best Youth Engagement and Employment category at HR Excellence Awards
• British Institute of Innkeeping National Innovation and Training Award