Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Elevation Burger maintains environmentally friendly operating practices, including responsible sourcing of ingredients, robust recycling programs intended to reduce its carbon footprint, and store décor constructed of eco-friendly materials.
• Yalla Mediterranean demonstrates its commitment to the environment by using responsibly sourced proteins and utensils, bowls and serving trays made from compostable materials.

Social Achievements

• We have a diverse workforce and recently appointed an executive level Diversity, Equity & Inclusion Officer.
• We believe that communication is key to the effectiveness of our workforce and schedule regular weekly conference calls with all of our corporate employees, updating them on the direction of the business, important developments within our company and the industry and key milestones to be achieved.
• We also encourage our employees to be involved in their communities and directly operate two charities - The Seeds of Compassion Fund, Inc., a charitable foundation that provides disaster relief to local communities, and FAT Brands Foundation, a charitable foundation that was organized and seeded by FAT Brands and which seeks additional contributions from our employees, franchise partners and brand partners.

Governance Achievements

• We have adopted a written code of business ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

Climate Goals & Targets

Environmental Challenges

• Risks Related to Our Franchised Business Model
• Risks Relating to Our Business and Operations
• Health concerns arising from outbreaks of diseases, other than COVID-19
• Food safety and foodborne illness concerns
• The sale of alcoholic beverages at Twin Peaks Restaurants subjects us to additional regulations and potential liability
• Our success depends substantially on our corporate reputation and on the value and perception of our brands
• Failure to protect our service marks or other intellectual property
• If our franchisees are unable to protect their customers’ credit card data and other personal information
• We and our franchisees rely on computer systems to process transactions and manage our business, and a disruption or a failure of such systems or technology
• Our business may be adversely affected by cybersecurity incidents
• The retail food industry in which we operate is highly competitive
• Supply chain shortages or interruptions in the availability and delivery of food and other supplies
• Climate change and the shift to more sustainable business practices
• Our business may be adversely impacted by changes in consumer discretionary spending, general economic conditions, or consumer behavior
• Our expansion into international markets exposes us to a number of risks
• Our financial condition and results of operations may be adversely affected if global markets in which our franchised restaurants compete are affected by changes in political, economic or other factors
• We depend on key executive management
• Labor shortages or difficulty finding qualified employees
• Changes in labor and other operating costs
• Risks Related to Government Regulation and Litigation
• Risks Related to Our Class A Common Stock and Organizational Structure

Mitigation Strategies

• We utilize a third-party purchasing and consulting company that provides distribution, rebate collection, product negotiations, audits and sourcing services focusing on negotiating distributor, vendor and manufacturer contracts, thereby ensuring that our brands receive meaningful buying power for our franchisees.
• Our team has developed a reliable supply chain and continues to focus on identifying additional back-ups to avoid or minimize any possible interruption of service and product globally for our franchisees.
• We have implemented policies and procedures designed to promote compliance with these laws
• We maintain director and officer liability insurance for losses or advancement of defense costs in the event legal actions are brought against the Company’s directors, officers or employees for alleged wrongful acts in their capacity as directors, officers or employees.

Supply Chain Management

Responsible Procurement

• FAT Brands is committed to seeking out and working with best-in-class suppliers and distribution networks on behalf of our franchisees.

Climate-Related Risks & Opportunities

Physical Risks

• Holidays and severe weather in certain regions, including hurricanes, tornados, thunderstorms, snow and ice storms, prolonged extreme temperatures and similar conditions, may impact restaurant sales volumes in some of the markets in which we operate.
• Increasing weather volatility or other long-term changes in global weather patterns, including any changes associated with global climate change, could have a significant impact on the price, availability and timing of delivery of some of our ingredients.

Transition Risks

• Concern over climate change and other sustainable business practices may result in new or increased legal and regulatory requirements or generally accepted business practices, which could significantly increase our costs.
• Legislative, regulatory or other efforts to combat climate change or other environmental concerns could result in future increases in the cost of raw materials, taxes, transportation and utilities, which could affect our results of operations and necessitate future investments in facilities and equipment.