The Restaurant Group Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:32,010 tCO2e/year (Scope 1 & 2 market-based)

Scope 1 Emissions:1,312 tCO2e/year

Scope 2 Emissions:420 tCO2e/year

Scope 3 Emissions:Not disclosed

Renewable Energy Share:91% (Scope 1 & 2)

Total Energy Consumption:174,094,565 kWh/year

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Conserving Resources
Working with Partners
Supporting People and Communities
Climate Change
Diversity & Inclusion

Environmental Achievements

Achieved a 91% reduction of Scope 1 and 2 emissions in 2022 vs 2021 (market-based).
Achieved 5% reduction in energy usage (like-for-like sites) vs 2019.
100% of waste diverted from landfill, 56% recycled for sites where waste streams are controlled.
Wagamama launched new delivery packaging bowls made from cPET, reducing carbon intensity of Katsu curry packaging by 62%.

Social Achievements

Raised over £300,000 for charity and non-profit organisations in 2022.
Improved customer sentiment with a 10% improvement in NPS across Frankie & Benny’s and 5% for Chiquito.
Over 35% of Leisure teams graduated through the “Raise the Roof” programme, improving customer NPS and team engagement scores.
85% of Leisure colleagues happy in their role, over 80% recommending the business as a great place to work.

Governance Achievements

Successfully amended and extended debt facilities, providing extended tenor, improved covenant package, and ability to make further repayments.
Completed an amend and extend of its existing debt facilities, repaying £20.9m of the term loan to reduce interest costs.

Climate Goals & Targets

Long-term Goals:

Net zero emissions by 2040.

Medium-term Goals:

Improve EBITDA margin by 250-350bps over three years.
Target Net debt/EBITDA below 1.5x within three years.
Reduce Leisure estate by c.30% by 2024.

Short-term Goals:

Not disclosed

Environmental Challenges

Significant inflationary pressures impacting the entire casual dining sector.
Cost-of-living pressures impacting customer spending.
Shortage of labour supply in the UK.
Elevated levels of food and drink and energy inflation.
Increased National Living Wage.

Mitigation Strategies

Hedging utilities until December 2024.
Reducing interest rate exposure through interest rate caps.
Proactive cost management.
Short-term contracts with food and drink suppliers.
Central cost efficiencies plan.
Estate rationalisation plan to improve cash generation.
Continued investment in food & drink quality.
Improved colleague engagement.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Responsible Sourcing Policy
Modern Slavery Act policy compliance
BRC Food Safety Global Standard or GFSI equivalent certification
Sustainable sourcing of fish, palm oil, and soy.

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events impacting harvests and increasing sourcing costs.
Extreme weather events (heatwaves, flooding) reducing footfall and impacting operations.

Transition Risks

Lack of suppliers meeting decarbonisation requirements.
Failure to align with climate-aware customers.
Introduction of carbon tax.

Opportunities

Attracting climate-aware customers with plant-based and locally sourced food.
Reducing emissions and energy costs through investment in energy-efficient equipment.
Reducing waste and emissions.

Reporting Standards

Frameworks Used: SASB

Certifications: 3 stars (highest rating) in SRA's Food Made Good programme

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Wagamama's 50% plant-based menu
New cPET delivery packaging bowls

Awards & Recognition

3 stars in SRA's Food Made Good programme

Reporting Period: 2023