Climate Change Data

MTY Food Group Inc.

Climate Impact & Sustainability Data (2021, 2022-12 to 2023-11)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • People & Culture
  • Governance
  • Cybersecurity & Data Protection
  • Food Security & Supply Chain Management
  • Food Safety & Product Quality
  • Environmental Impact

Environmental Achievements

  • Banned the use of Styrofoam for contracted products across all divisions in 2018
  • Replaced all plastic stir sticks in 2021 in Canada with wooden stir sticks available upon request
  • Sourced sustainable options to comply with bans on plastic straws, cutlery, and to-go bags where applicable
  • Reduced the amount of printed paper at restaurants by an amount equivalent to 383 trees by replacing paper brochures and stickers with online information and QR codes

Social Achievements

  • Approximately 100,000 people employed globally by franchisees in 2021
  • MTY contributed to multiple charities through financial support or food and service donations
  • 79% of corporate employees felt engaged by their career at MTY (compared to the survey norm of 75%)
  • 96 internal team members promoted across corporate offices in 2021
  • 100% of Canadian employees who took parental leave in 2021 returned to work; 70% remained employed after 12 months

Governance Achievements

  • Established an ESG committee in 2021 responsible for ESG matters and providing guidance to the Board of Directors
  • Formal training for senior management and divisional leaders regarding ESG framework, standards, and insights
  • Town Hall meeting for head office employees regarding ESG matters, specifically food and planet pillars

Climate Goals & Targets

Long-term Goals:
  • Calculate and publish Scope 1 and 2 emissions starting in 2025 report
  • Measure and report Scope 3 emissions by 2030
Medium-term Goals:
  • Replace hard-to-recycle plastics with alternatives in Canadian operations by end of 2023
  • Evaluate reusable packaging solutions by 2023
  • Ensure all MTY-branded packaging communicates proper disposal by end of 2024
  • Ensure 100% of contracted paper-based packaging is FSC Certified or contains post-consumer recycled content by 2025
  • Work with suppliers to only use eggs from free-range hens by 2025
  • Align with Global Animal Partnership’s Better Chicken Project standards by 2025 for 100% of chicken products
Short-term Goals:
  • Publish nutritional information, ingredient lists, and allergen cards for top 50 brands by 2023, and all brands by 2024
  • Measure percentage of kids' menus consistent with dietary guidelines by 2023, aiming for 80% by 2024
  • Implement a Supplier Code of Conduct for all tier 1 suppliers by 2025

Environmental Challenges

  • Decentralized nature of the company created challenges when reporting on achievements, objectives, and progress
Mitigation Strategies
  • Created a cross-functional team to report on achievements and establish consistent objectives across business units

Supply Chain Management

Responsible Procurement
  • Supplier Qualification Scorecard
  • MTY Manufacturer Supply Agreement (MSA)
  • Non-Disclosure Agreement (NDA)
  • Supplier product form to track and manage every SKU purchased

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Reporting Period: 2022-12 to 2023-11

Environmental Metrics

ESG Focus Areas

  • People & Culture
  • Governance
  • Cybersecurity & Data Protection
  • Food Security & Supply Chain Management
  • Food Safety & Product Quality
  • Environmental Impact

Environmental Achievements

  • Measured Scope 1 and 2 greenhouse gas emissions.
  • Replaced hard-to-recycle plastics with 100% recyclable, compostable or reusable options in Canada and where required by law.
  • 100% of palm oil sourced from RSPO-certified source.

Social Achievements

  • Donated over 90,000 meals, 13,000 kg of food, and $1.6 million in 2023.
  • Launched a philanthropy program for employee volunteer hours.
  • 81% participation rate in annual employee engagement survey; 89% of corporate employees felt their manager genuinely cared about their wellbeing.

Governance Achievements

  • Streamlined the MTY Supplier Code of Conduct.
  • Formed a compensation committee.
  • No legal action regarding anti-competitive behavior or violations of anti-trust or monopoly legislation during the reporting period.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions goal (target year not specified)
Medium-term Goals:
  • Measure and report Scope 3 emissions (2025)
  • All Tier 1 vendors to have a certified third-party audit verifying food safety programs, including HACCP (2025)
  • All contracted protein vendors to have signed the MTY Supplier Code of Conduct or a mutually agreed upon equivalent (2025)
Short-term Goals:
  • Measure and report Scope 1 and 2 emissions (2024)
  • All applicable brands to provide at least one plant-based menu item (2024)
  • Publish or make accessible to guests the nutritional values & allergen cards of core menu items for all brands (2024)

Environmental Challenges

  • Data collection challenges in a diverse and dynamic organization.
  • Managing food safety risks inherent in the restaurant business.
Mitigation Strategies
  • Deploying new tools to improve data abundance and timeliness.
  • Implementing stringent training programs and audit measures for food safety.
  • Developing specific supplier qualification programs and strengthening audit protocols.

Supply Chain Management

Responsible Procurement
  • MTY Supplier Code of Conduct
  • Supplier assessments based on criteria including compliance with health and safety regulations and plant certifications

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB for Restaurants, GRI