The Fulham Shore PLC

Climate Impact & Sustainability Data (2020, 2021, 2022)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:2,323 tCO2e/year

Scope 1 Emissions:607 tCO2e/year

Scope 2 Emissions:1,696 tCO2e/year

Scope 3 Emissions:20 tCO2e/year

Total Energy Consumption:10,259,526 kWh/year

Carbon Intensity:0.03 Tonnes CO2e per £1,000 of Revenue

ESG Focus Areas

Employee well-being
Community investment
Environmental operating procedures
Ethical sourcing

Environmental Achievements

Presented GHG emissions and energy use data under Streamlined Energy and Carbon Reporting (SECR) for the first time.

Social Achievements

Continued to create new jobs in new restaurants.
Invested in staff through training, incentives, and personal development.
Implemented a job retention bonus scheme.
Donated £5,000 to local charities and Franco Manca donated over 15,000 pizzas to food banks and homeless shelters.

Governance Achievements

Adopted the QCA Guidelines.
Improved corporate governance by having independent remuneration advisors benchmark executive director remuneration packages.
Directors waived 20% of remuneration due to them from April 2020 until the majority of restaurants reopened.

Climate Goals & Targets

Environmental Challenges

COVID-19 pandemic and resulting restaurant closures.
Cost inflation due to Brexit and National Living Wage increase.
Supply chain disruptions.
Competition in a fragmented market.
Potential risks from Debenhams administration.
Cybersecurity risks.
Regulatory compliance requirements.

Mitigation Strategies

Pivoted to delivery and click and collect services during closures.
Benefited from the UK Government's 'Eat Out to Help Out' scheme.
Secured additional equity funding and extended banking facilities.
Reduced costs and halted non-essential capital expenditure.
Implemented additional safety precautions and training.
Built up stock to mitigate Brexit delays.
Invested in human resources and incentive schemes to retain key individuals.
Implemented robust supplier selection processes and regular cybersecurity reviews.
Regularly reviews regulatory changes.

Supply Chain Management

Responsible Procurement

Local sourcing of some products.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS 16

Third-party Assurance: RSM UK Audit LLP

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1527 tCO2e/year

Scope 1 Emissions:447 tCO2e/year

Scope 2 Emissions:1065 tCO2e/year

Scope 3 Emissions:15 tCO2e/year

Total Energy Consumption:7,218,318 kWh/year

Carbon Intensity:0.04 Tonnes CO2e per £1,000 of Revenue (2021), 0.03 (2020)

ESG Focus Areas

Employee well-being
Community investment
Environmental operating procedures
Ethical sourcing
Compliance

Environmental Achievements

Reduced total energy consumption by 29.9% to 7,218,318 kWh (2020: 10,259,526 kWh) and reduced CO2 emissions by 34.3% to 1,527 tCO2e (2020: 2,323 tCO2e), driven by COVID-19 restrictions.

Social Achievements

Continued to create jobs in new restaurants.
Invested in staff training, incentives, and personal development.
Donated £5,000 to local charities and Franco Manca donated over 15,000 pizzas to food banks and homeless shelters.
Implemented new innovative incentive schemes to retain key individuals.

Governance Achievements

Adopted the Quoted Companies Alliance (QCA) Guidelines.
Established whistleblowing procedures.
Regular compliance updates at Board meetings.
Strong audit processes covering food safety, human resource compliance, and financial process compliance.

Climate Goals & Targets

Medium-term Goals:

Increase the total estate to over 230 restaurants in the UK.

Short-term Goals:

Increase the number of restaurants to over 110 by the end of 2025.

Environmental Challenges

COVID-19 pandemic and related trading restrictions.
Supply chain disruptions due to Brexit and increased consumer demand.
Cost inflation (food, National Living Wage, utilities).
Recruitment difficulties due to Brexit and COVID-19.
Competition in a fragmented market.
Risk of closure for restaurants in former Debenhams stores.
Cybersecurity risks related to online services.
Risk of temporary interruption to third-party delivery service providers.
Increased regulatory compliance requirements.

Mitigation Strategies

Pivoted to takeaway, click and collect, and delivery services.
Implemented cost-saving measures.
Benefited from UK Government coronavirus support and grants (£10.3m).
Increased stock levels to mitigate supply chain disruptions.
Switched to UK-grown ingredients.
Invested in human resources team and implemented new incentive schemes.
Secured new sites at favorable rent levels.
Utilised robust supplier selection processes and regular third-party reviews.
Utilised two independent delivery platforms.
Regularly reviews regulatory changes.

Supply Chain Management

Responsible Procurement

Focus on freshness and quality of produce.
Local sourcing where possible.
Increased stock levels to mitigate Brexit-induced delays.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SECR

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:3,136 tCO2e/year (UK only)

Scope 1 Emissions:924 tCO2e/year

Scope 2 Emissions:2,170 tCO2e/year

Scope 3 Emissions:42 tCO2e/year

Total Energy Consumption:14,769,952 kWh/year (UK only)

ESG Focus Areas

Energy Consumption
Employee wellbeing
Ethical sourcing
Community Investment
Supplier relationships

Environmental Achievements

Reduced energy intensity (Tonnes CO2e per £1,000 of Revenue) to 0.04 in 2022 from 0.04 in 2021. Total energy consumption increased due to new openings and prior year restrictions.

Social Achievements

Continued to create jobs with new restaurant openings. Implemented a service charge and tronc scheme to benefit staff.
Charitable donations of £5,000 to local charities and over 15,000 pizzas to food banks and homeless shelters.
Invested in staff training, incentives, and personal development.

Governance Achievements

Adopted the Quoted Companies Alliance (QCA) Guidelines.
Regular Board reviews of risks and opportunities.
Established whistleblowing procedures.

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Over 120 restaurants in the UK by spring 2025.
Over 250 restaurants in the UK (long-term aim).

Short-term Goals:

Around 100 locations by spring 2023.

Environmental Challenges

COVID-19 pandemic impact and related restrictions.
Cost inflation in food, drink, utilities, and building materials.
Supply chain disruptions.
Staff recruitment challenges.
Competition in the restaurant market.
Landlord negotiations (particularly for restaurants in former Debenhams locations).

Mitigation Strategies

Cost-saving measures and cash flow management.
Extended maturity date of RCF facility.
Alternative supplier selection and longer-term contracts.
Increased stock levels to mitigate supply chain delays.
Investment in human resources and incentive schemes.
Active search for alternative locations for restaurants in former Debenhams locations.
Negotiated rent concessions and reductions with landlords.