2021 CORPORATE RESPONSIBILITY REPORT
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2021
CORPORATE
RE SPONSIBILITY
RE PORT
© 2022 Quality Is Our Recipe, LLC
2021 CORPORATE RESPONSIBILITY REPORT
T A B L E O F CONTENTS
3 A letter from Todd A. Penegor 21 People
• Workplace
4 Goals and key initiatives
• Community
5 2021 highlights
35 Footprint
6 Business snapshot and Wendy’s at a glance • Climate and energy
7 Reporting, stakeholder engagement • Water
and governance • Waste
• Supplier engagement
12 Food
• Squarely Sustainable Council
• Food safety
• Food quality and innovation 45 Metrics
• Responsible sourcing
A LET TE R F RO M TO D D A. PE N EG O R Accomplishing our goals is a team effort, and I am thankful our comprehensive ESG materiality assessment. Alongside those
for the contributions of the entire Wendy’s family, including goals, we also reported against recognized frameworks for the first
our restaurant team members, Restaurant Support Center time to increase transparency with stakeholders.
employees, franchisees, suppliers and industry partners,
2021 was a breakthrough year, who each play an important role in our success. Following the announcement of these goals, we convened cross-
functional teams within our organization to develop action plans and
as evidenced by the significant Accelerating growth guide implementation in each of those areas. Key highlights include:
progress we made in growing our We remained committed to our three strategic growth pillars:
building our breakfast daypart, driving our digital business and • A
ffirming our top 10 priority food categories. We affirmed our
business—all while advancing our expanding our presence across the globe. Our accomplishments in top 10 priority food categories after completing a third-party
efforts to drive positive change. these areas were built on our foundation of Fast Food Done Right, lifecycle assessment and defining key metrics to measure
Operational Excellence and Good Done Right. progress as part of our Responsible Sourcing goal.
• E
stablishing our Office of Diversity, Equity and Inclusion. Under
In 2021, we meaningfully grew our new U.S. breakfast daypart, the leadership of Dr. Beverly Stallings-Johnson in the new role
with overall breakfast sales up approximately 25%* from the prior of Chief Diversity, Equity and Inclusion Officer, we solidified five
year. Through partnerships and promotions, we continued to Diversity, Equity and Inclusion areas in which we intend to focus
see high customer satisfaction and repeat at breakfast, showing in the coming years.
that our trial-driving programs are paying off. We are excited to • Reporting our 2020 climate data to CDP. We reported to CDP,
launch breakfast in Canada in 2022, which will take the percentage a leading standard for climate reporting, for the first time, which
of restaurants across the Wendy’s System serving breakfast to is an important step as we prepare to set a science-based target
approximately 95%. Our team continued to innovate our digital to track and reduce emissions in our operations and supply
business across the globe – from bringing on new delivery partners, chain and to disclose Scope 1, 2, and 3 emissions in 2023 in
to cementing a strategic partnership with Google to improve how alignment with that target.
we use data to serve our customers and to continuing to grow the • M
aking solid progress in our sustainable packaging journey.
Wendy’s Rewards Program – all while ensuring that the protection We forged new partnerships that will allow us to innovate, offer
of data security and privacy remained top of mind. Overall, we saw more sustainable options and provide educational information
U.S. digital sales grow by more than 75%.* We also continued to make to our customers.
strides toward our goal of having 8,500 to 9,000 global restaurants
by the end of 2025, opening more than 200 new restaurants in 2021, Because of the importance we place on making positive change through
which was our highest in almost 20 years, despite a challenging our Good Done Right strategy, we recently announced that we will be
supply chain environment. We also celebrated a number of global tying executive compensation to Good Done Right performance, with
milestones, including our launch in the United Kingdom, our 400th a portion of executives’ 2022 incentive compensation linked to the
Canadian restaurant, our 1,000th international restaurant and the Company’s achievements in our Food, People and Footprint focus areas.
opening of more than 50 delivery kitchens around the world. We believe this will drive even more progress toward achieving our goals.
Accelerating Good Done Right Our future is bright, and I am confident that we will continue
Equally important is our dedication to our Corporate Responsibility to make meaningful progress towards achieving our vision of
platform, Good Done Right, which closely guides our growth becoming the world’s most thriving and beloved restaurant brand.
strategy and how we work to make an impact across our key focus
areas: Food, People and Footprint. Thank you and stay well,
Last spring, Wendy’s announced new goals to help us demonstrate
*
Excluding the impact of the 53rd week in 2020 progress in each of our key focus areas, informed by our
engagement with nearly 1,000 diverse stakeholders as part of Todd A. Penegor, President and CEO
2021 CORPORATE RESPONSIBILITY REPORT 3
GOALS AND KEY INITIATIVES
FOOD PEOPLE FOOTPRINT
Responsibly source our top 10 priority I ncrease the representation of enchmark, track and reduce our
B
food categories by 2030 in the U.S. underrepresented populations among our Scope 1, Scope 2 and Scope 3
and Canada. Company’s leadership and management, greenhouse gas (GHG) emissions and
as well as the diversity of our franchisees. set a science-based target by the end
→ Have a comprehensive accounting of 2023.
of animal welfare best practices for Wendy’s focus areas:
beef, pork, chicken, eggs and dairy → Increase representation of women Sustainably source 100% of our
through the Wendy’s Animal Care in leadership customer-facing packaging in the
Standards Program by the end U.S. and Canada by 2026.
→ Increase diverse representation in
of 2024
management and leadership
• T
ransition our pork supply chain → Through the U.S. Department of
→ Understand and address what has Energy’s Better Buildings® Challenge,
in the U.S. and Canada away from
been referred to as the “broken rung” reduce energy consumption in
sow gestation stalls for confirmed
of leadership Company-operated restaurants by
pregnant sows to open pen/group
housing by the end of 2022 → Increase representation of diverse 20% per transaction by 2025, against
and women-owned franchisees a 2012 baseline
• S
ource 100% of our U.S. and
Canadian beef, chicken and pork → Continue to drive diversity on the → Through the U.S. Department of
from suppliers that prohibit the Board of Directors Energy’s Better Buildings® Water
routine use of medically important Challenge, reduce the water use in
antibiotics by 2030 U.S. Company-operated restaurants
by 20% by 2029, against a 2018
baseline year
2021 CORPORATE RESPONSIBILITY REPORT 4
2021 HIGHLIGHTS
9,800 B $22.5M
Established our Office Completed global Food Safety Received a B score Raised across the Wendy’s
of Diversity, Equity and Assessments in partnership on our first submission System for the Dave
Inclusion with EcoSure® to CDP Climate Change Thomas Foundation
Disclosure for Adoption®
Supported First Women’s Began transitioning from Joined How2Recycle®
Bank as a Mission Partner plastic-lined paper drink cups label program to introduce
to help to expand economic with limited recyclability to on-package labels to
opportunities for women- single-substrate, clear plastic educate consumers in
owned businesses cups that more customers the U.S. and Canada
will be able to recycle on recycling
In 2021, we made meaningful progress in our efforts to improve our environmental
footprint, support our people and communities and invest in innovative solutions
that enhance food safety and visibility into our supply chain. The contributions of our
employees, franchisees, supply chain partners and other stakeholders are all critical
drivers of progress against our Good Done Right goals and all our CSR initiatives.
— L IL IANA E SPOSI TO, CHI EF CORP ORATE A FFA I RS & SUSTA I NA BI LI TY OFFICER
2021 CORPORATE RESPONSIBILITY REPORT 5
BUSINESS SNAPSHOT AT A GL ANCE
$12.5B+ ~10% 6,949 6,541
In systemwide sales Global digital sales mix at Restaurants across the globe Franchised restaurants
year end 2021
$1.9B 408 14,500
~25%
1
In revenue Company-operated Company employees
U.S. breakfast sales growth restaurants
10%
Global same-restaurant
sales growth
32 COUNTRIES & U.S. TERRITORIES 2021 GLOBAL FOOTPRINT AND GROWTH MILESTONES
32 121 1,000th
Countries and Net new restaurant International
U.S. Territories additions2 restaurant
opened3
Restaurant Support
400th 300th
Center located
in Dublin, Ohio
(Columbus area)
USVI
ARUBA
Curaçao
GUAM
Restaurant in Restaurant in
Canada opened Asia Pacific/Middle
East/Africa region opened
1
Excluding the impact of the 53rd week in 2020
2
Most in almost 20 years
3
Wendy’s International includes the operation and franchising of Wendy’s restaurants in countries and territories other than the U.S.
2021 CORPORATE RESPONSIBILITY REPORT 6
REPORTING, STAKEHOLDER ENGAGEMENT AND GOVERNANCE
Reporting
This report provides an overview of Wendy’s ITI
ON
U TR
DA
activities related to corporate responsibility • N TA
TY SE
LI C
topics and covers the 2021 calendar year, unless Q
U
A U
R
otherwise indicated. This report primarily covers
9
&
IT
TY
Y
&
FE
material business updates across our U.S. and
PR
SA
Industry,
IV
Innovation and
OD
Canadian restaurants, which constitute more
AC
Infrastructure
O
Y •
• F
than 90% of our business footprint, unless
PEO
L CARE & WELFARE
otherwise indicated. Information related to
PLE & ETHICS
Wendy’s as an employer refers to The Wendy’s FOOD PEOPLE
Company and employees in our Company-
operated restaurants, field support roles and FOOTPRINT
corporate staff primarily based out of the
IMA
Restaurant Support Center. Prior to publishing
AN
this report, our most recent annual Corporate
Responsibility report was published in 2021 and
Y
C
C
LI
covered the 2020 calendar year. We intend to
EN
M
TE
R
A
A
, P
continue issuing a report annually, highlighting EN
ER N
S
GY RA
• T
our corporate responsibility strategy and & W
AT E A ST
E
R • P W
ACKAGING &
initiatives, including progress on our goals.
For the first time in 2021, we reported 2020 data to
the CDP Climate Change questionnaire, a leading We have included reporting indices at the end For any questions or comments regarding topics
disclosure practice for environmental reporting. of this report that reflect disclosures against covered in this report, please contact us at
We also recognize leading reporting standards these standards. corporateresponsibility@wendys.com.
such as the Global Reporting Initiative (GRI),
Sustainability Accounting Standards Board (SASB) The United Nations Sustainable Development
and United Nations Sustainable Development Goals that we have identified as aligning with
Goals and strive to embed their principles and our priority impact areas can be found on our
frameworks throughout our report. website and are further detailed above.
2021 CORPORATE RESPONSIBILITY REPORT 7
Stakeholder engagement The following table provides a snapshot of the stakeholders we engaged with on corporate
Our stakeholders help inform how we do responsibility topics and the topics we covered as part of our communications in 2021.
business every day. In 2020, we completed a
MATERIA L TOPICS E X A M P L E S O F S TA K E H O L D E R E N G AG E M E N T I N 2 0 2 1
comprehensive ESG materiality assessment with
significant stakeholder involvement to better
understand the areas of greatest importance to Our Quality Assurance team worked closely with our recently expanded Animal
ANIMAL CARE & WELFARE Welfare Council, which consists of suppliers and academic experts, and
these groups. The materiality process ultimately Progressive BeefTM to continue implementing our Animal Care Standards Program.
yielded the material topics that fall under our
We engaged with institutional and environmentally conscious shareholders to
three Good Done Right pillars that are the focus discuss and inform our commitment to set a science-based emissions target. We
of this report: Food, People and Footprint. We CLIMATE, ENERGY & WATER also participated in the U.S. Department of Energy’s Better Buildings Challenges on
energy and water.
shared the assessment’s findings for the first
time in our 2020 Corporate Responsibility Our Enterprise Data Governance Committee, which is composed of leadership-
level team members and subject matter experts from the Company, informs
report, and we plan to periodically update our DATA SECURITY & PRIVACY relevant stakeholders on data-related program progress, escalated issues and risks
assessment in future years. Our materiality and long-term strategic goals, and assists relevant stakeholders with identifying
and mitigating data issues.
assessment and its findings, along with a matrix
visualizing our priority topics, can all be found We engaged with franchisees and third-party delivery providers, along with the
U.S. Food and Drug Administration, in support of uniform, clear food safety
on our website. FOOD SAFETY & QUALITY regulations that contemplate the proliferation of third-party delivery and delivery
kitchen concepts.
We regularly communicate with a range of Our Culinary Innovation Kitchen renovation at our Restaurant Support Center
stakeholders in a variety of ways, including NUTRITION
involved collaboration with Wendy’s Culinary, Quality Assurance and Consumer
Insights teams as well as Wendy’s independent supply chain purchasing co-op,
formal communications, such as our Corporate QSCC, and supplier partners who helped inform our new menu items.
Responsibility report, website updates, SEC
As we began transitioning from plastic-lined paper cups to more recyclable plastic
filings, earnings releases and presentations PACKAGING & WASTE cups, we joined the How2Recycle program to incorporate educational labeling on
and annual shareholder meeting, and one-on- our customer-facing packaging to help customers recycle.
one engagements, such as calls and meetings We supported First Women’s Bank as a Mission Partner to expand economic
with suppliers, investors, NGOs and others. We opportunity for women-owned businesses and create opportunities for new
listen and learn from these valued groups to PEOPLE & ETHICS franchisees. We also engaged with federal, state and local public health bodies to
help us better understand the evolving COVID-19 situation and its impacts with a
ensure we are considering outside perspectives focus on the safety and comfort of our employees and customers.
as well as the needs and preferences of our To continue our food safety, quality practices and oversight of our suppliers
own team members. and distribution centers amidst COVID-19 restrictions, we partnered with
TRACEABILITY & TRANSPARENCY NSF EyeSucceed™ to test the use of augmented reality smart glasses. We also
participated in a pilot with supply chain partners to test blockchain technology
for greater visibility into our pork supply chain.
2021 CORPORATE RESPONSIBILITY REPORT 8
Governance Board of Directors
Wendy’s is committed to maintaining strong As part of its oversight and advisory role, our Board of Directors continually monitors
governance practices as a critical component emerging best practices in corporate governance to serve the interests of our
of driving sustained stakeholder value. stockholders.
The Board has a dedicated standing Corporate Social Responsibility (CSR) Committee.
WENDY’S GUIDING VALUES The CSR Committee assists the Board in reviewing and overseeing the Company’s CSR
strategic initiatives, including environmental, social, and governance (ESG) matters,
Our founder Dave Thomas opened the first community involvement and outreach initiatives and philanthropic endeavors. More
Wendy’s restaurant more than 50 years ago, information on the CSR Committee’s responsibilities can be found in the committee’s
introducing five core values that continue to charter.
shape the way we operate. These values are
embedded into how we approach our corporate The Board’s other standing committees, including the Audit Committee, Compensation
responsibility priority areas and programs. and Human Capital Committee, Nominating and Corporate Governance Committee and
Technology Committee, also oversee certain topics that fall within our ESG strategy
(see chart for details).
For more information on our governance structure and approach, please visit our
Governance page on our Investor Relations website.
Management
Wendy’s recognizes the important role that governance and risk management play in
supporting our overall ESG strategy, including building a sustainable and resilient supply
chain, managing climate risk and supporting safe and responsible work environments.
In 2021, we elevated the role of Chief Communications Officer, held by Liliana Esposito,
to the title of Chief Corporate Affairs & Sustainability Officer to more fully reflect her
responsibilities and the growing importance of corporate responsibility for the Company.
2021 CORPORATE RESPONSIBILITY REPORT 9
FOOD
Wendy’s has an ESG Steering Committee that is co-chaired use of information submitted through our services and our
by our Chief Financial Officer and our Chief Corporate Affairs commitment to protecting privacy.
& Sustainability Officer. The committee is composed of senior
management personnel and has responsibility for: Wendy’s maintains a comprehensive cybersecurity program with
• Identifying and monitoring ESG risks and opportunities a team that is responsible for directing, coordinating, planning
and organizing information security activities throughout the
• S
etting global ESG strategies and overseeing activities and
Company, including annual training sessions.
strategy rollouts across the business
• Approving ESG goals, KPIs and metrics We align our security controls to the Center for Internet
Security Critical Security Controls Framework and undergo
The ESG Steering Committee is supported by cross-functional an annual assessment to track our program maturity. We also
working groups that help support our global ESG strategy, with a undergo multiple annual external assessments against the
focus on our Good Done Right goals. The groups are led by the Chief Payment Card Industry Data Security Standard (PCI DSS).
Corporate Affairs & Sustainability Officer and have responsibility for:
• Staying current on risks and opportunities We have several dedicated teams of specialists within our
Information Security Department that routinely conduct
• Implementing activities and executing global ESG strategies
internal and external vulnerability and penetration assessments
• R
ecommending and monitoring progress against ESG goals, in accordance with both PCI DSS and industry accepted
KPIs and metrics practices. We regularly test our incident response capabilities
• S
upporting the managing and drafting of Wendy’s annual through tabletop exercises and incident response plan testing.
Corporate Responsibility report
Wendy’s is active in the information security community and is
Data privacy and information security a core member of the Retail and Hospitality Information Sharing
Wendy’s respects the privacy of individuals and is committed to and Analysis Center. Representing over 200 companies from
protecting the personal information that is provided to, or collected retail, restaurants, hotels, gaming, casinos and other consumer-
by, Wendy’s about our customers, employees, franchisees and facing industries, members benefit from real-time collaboration,
other business partners. Wendy’s privacy policy explains our industry-specific benchmarking, threat intelligence reports and
privacy practices, including the information we collect and how analysis, industry-relevant committees and working groups, and
it is used, the choices that can be made about the collection and numerous training, education and networking opportunities.
2021 CORPORATE RESPONSIBILITY REPORT 10C O R P O R AT E R E S P O N S I B I L I T Y A N D E S G G OV E R N A N C E
The following chart provides a representative snapshot of the structure at the Board (red), Senior Management
(blue) and Functional (gray) levels that supports Wendy’s corporate responsibility and ESG efforts.
BOARD OF DIRECTORS
Oversees the Company’s corporate governance strategy, policies and programs and monitors emerging best practices in corporate governance
C O R P O R AT E S O C I A L N O M I N AT I N G A N D C O M P E N S AT I O N A N D AUDIT COMMITTEE TECHNOLOGY
RESPONSIBILITY C O R P O R AT E G OV E R N A N C E H U M A N C A P I TA L COMMITTEE
Assists the Board in overseeing the
(CSR) COMMITTEE COMMITTEE COMMITTEE
Company’s accounting and financial Assists the Board in overseeing the
Assists the Board in overseeing and Assists the Board in reviewing and Assists the Board in discharging its Company’s overall development,
reporting processes and the integrated
reviewing the Company’s CSR initiatives, overseeing the membership of the Board responsibilities relating to compensation use and risk management of
audits of the Company’s financial
including ESG topics, community and corporate governance principles of non-employee directors and executive information technology, including
statements, as well as the Company’s risk
outreach and philanthropy applicable to the Company officers and reviewing the Company’s digital customer engagement
assessment and risk management policies
human capital management strategies initiatives and the Company’s
and policies, including those regarding cybersecurity and data privacy
Diversity, Equity and Inclusion programs and policies
ESG STEERING O F F I C E O F D I V E R S I T Y, ENTERPRISE RISK E N T E R P R I S E DATA
COMMITTEE EQUITY AND INCLUSION MANAGEMENT COMMITTEE GOVERNANCE COMMITTEE
Oversees the Company’s ESG Sets strategy and oversees Oversees the Company’s Enterprise Advances Company objectives
programs, including identifying risks programs to create a culture in Risk Management program to support and business strategy through
and opportunities, setting strategies which all members of the Wendy’s the Company’s efforts to assess, the development, implementation,
and approving goals and metrics family can bring their true, authentic monitor and mitigate a broad range of and effective operations of the
selves to work and have a sense enterprise risks protection and management of
of belonging data throughout its lifecycle
Implement activities and execute global ESG strategies, including the Company’s Good Done Right goals, monitor and respond to ongoing ESG risks and opportunities, recommend and monitor
WORKING GROUPS
progress and support the development of the annual Corporate Responsibility report
Wendy’s is committed to driving positive change, which is why we have invested in growing our internal infrastructure to further support our ESG priorities. With the elevation of senior leadership
positions and establishment of dedicated offices, committees and councils, including the Office of Diversity, Equity and Inclusion, we believe we are well positioned to deliver on our goals.
— GUNTHER PLOSCH, CHIEF FINANCIAL OFFICER
2021 CORPORATE RESPONSIBILITY REPORT 11FOOD
Delivering high-quality food, transparently
RESPONSIBLY SOURCE OUR TOP 10 PRIORITY FOOD CATEGORIES BY 2030 IN THE U.S. AND CANADA
FOOD SAFETY FOOD QUALITY AND INNOVATION RESPONSIBLE SOURCINGFOOD
FOOD SAFETY
Wendy’s was founded on the premise that Quality In 2021, we:
Is Our Recipe®, and we believe that food safety is • L
aunched Wendy’s enhanced Food Safety
the foundation of quality. Always innovating Assessment program in partnership with
Wendy’s is a long-time leader in the development EcoSure, a division of global hygiene and
and execution of quality processes and initiatives infection prevention expert Ecolab®, and
that are focused on providing a safe and wholesome completed approximately 9,800 global Food
Fostering a culture of food safety
food supply, and we are consistently looking for Safety Assessments at Wendy’s restaurants.
Food safety is part of our culture and at the
ways to strengthen our processes further. These assessments help to ensure Wendy’s
center of our daily operations. It is embedded
throughout our quality assurance processes, restaurant operators around the globe build
procedures and equipment—from our suppliers’ food-safe behaviors and adhere to best-in-
farms and facilities to our company and class food safety and operational procedures.
franchised restaurants around the globe, to • I ntroduced a program that can be used to
our non-traditional restaurant formats, like help coach restaurant teams on consistent
our Hamburger Stand, Frosty® Cart and execution of Wendy’s operational standards,
delivery kitchens. following the model Dave Thomas set for us
when he visited a restaurant. These sessions,
The importance of reinforcing and continually called “Wendy’s Done Right Visits,” are
enhancing our food safety culture is also why we intended to focus on what matters most to
seek additional opportunities outside of regular our customers: taste and accuracy of food,
training and assessments, like our month-long speed of service, friendliness and cleanliness.
celebration of World Food Safety Day, to share Since launching the program in March, nearly
educational materials with our employees, 5,300 U.S. restaurants have been visited
restaurant team members and franchisees, and and coached, as well as more than 850
to recognize the work we do collectively in this restaurants internationally.
critical area.
2021 CORPORATE RESPONSIBILITY REPORT 13FOOD
• C
ontinued to invest in WeSafe, our innovative • T
o increase visibility of key perishable menu
digital system designed to help streamline items in the supply chain, we expanded the BEHIND THE SCENES: THE PEOPLE
data tracking in our supply chain, such as cold chain monitoring program through WHO HELP US PROVIDE SAFE,
the way we monitor Wendy’s fresh, never- Sensitech, a multimodal enabled real-time HIGH-QUALITY FOOD
frozen beef4 on its way to restaurants with Internet of Things (IoT) device that utilizes
production analysis, product sampling cellular triangulation communication to Wendy’s continually invests in our Quality
and cold chain verification taken from deliver complete visibility into the perishable Assurance team and function, including
temperature sensors inside the trucks that supply chain. We successfully monitored expanding the team by 30% in 2021, as their
supply our restaurants. In 2021, Wendy’s temperature, location and light data for broad experience and capabilities in an ever-
tracked nearly 13 million data points across 60,000 loads in 2021. changing industry is critical to our success.
all major Wendy’s food products, verifying This team:
compliance to our specifications through
• I ncludes scientists, animal, agriculture and
laboratory evaluations and plant production.
packaging experts and microbiologists.
• C
ompleted a follow-up radio frequency • P
articipated in a pilot program, in partnership
• I s structured under the Product Compliance,
identification (RFID) pilot program, further with NSF EyeSucceed, to test the use of
Data Management and Restaurant Quality
seeking to improve traceability and efficiency augmented reality smart glasses to support
Assurance functions.
in the way supplies are handled throughout food safety, quality practices and oversight
Wendy’s supply chain. In this pilot program, of Wendy’s suppliers and distribution centers • H
olds Global Food Safety Initiative-
we partnered with a supplier to affix RFID as well as remote training and education for recognized, Advanced Hazard Analysis
tags to 180 cases of Wendy’s products restaurant team members. Critical Control Point and ASQ’s Quality
at the supplier’s location and tracked Auditor certifications, as well certifications in
the product throughout the journey to a key food sourcing categories like Professional
Wendy’s restaurant. These RFID tags contain Animal Auditor Certification Organization
information about contents and expiration (PAACO) for animal proteins.
dates, and handheld readers make it easy to • E
ngages with more than 40 organizations,
view that data. The pilot program identified including the Beef Industry Food Safety
potential benefits for time and labor savings, Council, Foodservice Packaging Institute,
as well as increased traceability. Institute of Food Technologists, National
Restaurant Association Quality Assurance
Executives, the Global Food Safety Initiative
(GFSI) and Ohio Department of Health,
4
Fresh beef available in the contiguous U.S., Alaska and Canada. among many more.
2021 CORPORATE RESPONSIBILITY REPORT 14FOOD
FOOD QUALITY AND INNOVATION
Guided by our food vision, Fast Food Done Right, The redesign promotes this type of cross-
we will continue delivering high-quality menu functional collaboration, which has long been
items, while providing consumers with choices a central element of Wendy’s approach to food
and the ability to customize items to meet their innovation, as well as consumer testing through
lifestyle needs. a more modern, open floor plan and tools that
make it easy to connect in person and remotely.
INTRODUCING WENDY’S
HOT & CRISPY FRIES
We leveraged the new, more collaborative
Culinary Innovation Kitchen in August 2021 to
Supporting our food vision: Fast Food Done Right For years our Culinary team has been in the pursuit
host franchisees from around the world, regional of consistently hot and crispy fries – and we’re proud
Wendy’s vision for the food we serve is specific partners and global suppliers for the first-ever of what we achieved in 2021. Wendy’s Hot & Crispy
and demanding: Our food is Real, Fresh, Craveable, Fries launched in the U.S. and Canada in fall 2021,
International Innovation Food Forum. This hybrid
Forward-Leaning and Doesn’t Cost a Fortune. demonstrating innovation in merging real ingredients
food-tasting event featured new sandwiches,
That’s the core of Fast Food Done Right, a with world-class culinary application. Our Hot & Crispy
snacks, desserts and sides inspired by global Fries, made with skin-on potatoes, were developed after
standard we hone every day at the Restaurant culinary trends, consumer insights, brand strategy testing more than 20 different cuts to land an optimal
Support Center and in our restaurants across the design built for heat and crispiness. A national taste
and global supply capabilities. These new concepts
globe. Central to this effort is creating the right test by an independent research company showed a
will fuel our innovation pipeline for 2022 and
environment for collaboration so we can continue nearly 2:1 preference for our new fries compared to our
beyond and allow Wendy’s to continue to deliver on leading competitor. Our customer quality scores likewise
building our menu pipeline and bringing new ideas Fast Food Done Right internationally. demonstrated positive customer response to our Hot &
and partners to the table. Crispy Fries, indicating improvement in measures such as
“significantly prefer” and “worth what I pay.”
In 2021, Wendy’s completed the redesign of our
Among the potato suppliers of our Hot and Crispy
Culinary Innovation Kitchen at the Restaurant Fries, Cavendish Farms received our Good Done Right
Support Center where Wendy’s Culinary team, Award for the company’s exemplary environmental
working alongside Wendy’s Quality Assurance, sustainability practices. LambWeston Meijer, which
Restaurant Services and Consumer Insights teams supplies potatoes to several international Wendy’s
markets, received an honorable mention award for the
as well as Wendy’s independent supply chain company’s sustainability strategy to advance food safety,
purchasing co-op, QSCC, and supplier partners, quality, nutrition and health.
develops and tests new menu items.
2021 CORPORATE RESPONSIBILITY REPORT 15FOOD
RESPONSIBLE SOURCING
We strive to continuously improve how we to demonstrate progress — defined as showing
source our ingredients and how we demonstrate continuous improvement or achieving
accountability for ethical business practices, certification where applicable. For example, we
sustainability and social responsibility. In have aligned to a baseline of certified sustainable
April 2021, Wendy’s announced a new goal to for coffee and palm oil, such as the Rainforest
responsibly source our top 10 priority food Alliance certification and Roundtable on Sustainable
categories by 2030 in the U.S. and Canada, Palm Oil (RSPO) mass balance. See chart for
which builds on our long-standing work in this more detail.
area. The top 10 categories were determined
based on the volumes we purchase and the In 2022, we plan to deepen our supplier
impact they have on the world around us. engagement and launch a data collection process
to evaluate baseline performance and advance
In 2021, Wendy’s evaluated the environmental progress against ingredient-specific metrics to
and social impacts associated with each of improve category performance.
these food categories, validating each of the
categories’ inclusion on our priority list. We also
convened a Responsible Sourcing working group,
which includes representatives from Wendy’s
U.S. and International Quality Assurance,
Purchasing, Research and Development and
Corporate Responsibility teams and others, to
meet regularly to drive progress against our goal.
Through this cross-functional collaboration, in
2021 we established boundaries for each of the
priority food categories to clarify what each
category encompasses, identified potential focus
areas and aligned on the metrics we plan to use
2021 CORPORATE RESPONSIBILITY REPORT 16FOOD
WENDY’S TOP 10 PRIORITY FOOD CATEGORIES AND RELEVANT SOCIAL AND ENVIRONMENTAL INDICATORS5
SOC IA L E N V I RO N M E N TAL
TOP 10 PRIORITY FOOD CATEGORIES
HU M A N
BIODIV E RS I T Y F O O D WAST E
A N IM A L R IG HTS A N D D E F O RE STAT IO N GHG
A N TIBIOTIC S A N D S OI L I N S U P P LY WAT E R
WELFA R E WOR KER AN D L AN D U S E E M I S S IO N S
HEA LT H C H AI N
SA FETY
Beef
• Hamburger patties • • • • • • • •
Chicken
• Filets for chicken sandwiches and white meat chicken • • • • • • •
included in nuggets
P ROT EI NS
Pork
• Pork products including bacon and sausage • • • • • • •
Eggs
• Shell eggs • • • • • •
Dairy
• Frosty, milk and cheese • • • • • •
• • • • •
P RO D U C E
Fresh tomatoes and lettuce/leafy greens
Potatoes
• Includes fries, baked and seasoned potatoes • • • • •
Beverages
• Cold drinks, coffee, tea • • • • • •
Buns and Bakery
• • • • • •
OT H E R
• Wheat, oils and sweeteners in buns and bakery products
Oils
• Fryer oil/shortening, dressings, margarine • • • • • •
5
This chart is representative of how we are shaping our Responsible Sourcing program and will be refined further as work continues against this goal.
2021 CORPORATE RESPONSIBILITY REPORT 17FOOD
Advancing the Wendy’s Animal Care
Standards Program
SUPPLIERS WHO GO BEYOND
In 2021, in partnership with our recently expanded THE CALL OF DUTY
Animal Welfare Council, Wendy’s continued
implementing the Wendy’s Animal Care Standards
Program, which uses an assessment tool designed Through the Wendy’s Animal Care Standards
to help us recognize progressive suppliers, Program, Wendy’s identified efforts by the
better track farm conditions and animal care Beef Marketing Group, a cooperative of beef
producers and one of Wendy’s beef supply
and quantify the results. By the end of 2024,
chain partners, to pilot and validate a system
Wendy’s expects to have a comprehensive In 2021, we: that quantifies greenhouse gas emissions to
accounting of animal welfare best practices for understand its own emissions baseline. The pilot,
• T
ailored and tested the assessment tool
beef, pork, chicken, eggs and dairy. While we’ve which began in 2021, enables the cooperative to
for our beef, pork and chicken supply
long conducted animal welfare audits to monitor, track and analyze data related to feed rations,
chains and started evaluating our current
verify and evaluate proper animal handling, we are energy, fuel and water use, and more to get a
suppliers in those areas. The results will real-time view of its feedyards’ footprint.
now cataloguing the animal welfare best practices
inform how we demonstrate progress as
across our key proteins through this program and
part of our Responsible Sourcing program, This tool, which includes processes used by the
aiming to gain greater visibility further back within Intergovernmental Panel on Climate Change
help us determine which suppliers we seek
our supply chain. and the U.S. Department of Agriculture, helps
to engage further and show us where we
the Beef Marketing Group identify opportunities
have opportunities for improvement. Moving
to enhance environmental outcomes, while
forward, we will continue to evaluate these
providing Scope 3 emissions insights to supply
As part of our efforts to gain greater supply chain supply chains as we roll out the assessment chain partners, including Wendy’s.
visibility, in 2021 Wendy’s completed an industry- tool to our egg and dairy supply chains.
first pilot program with supply chain partners While the Beef Marketing Group is still in the
to test the use of blockchain technology to track
• M
ade strides in determining the cadence and
process of incorporating data across all its
and trace some of our Applewood Smoked Bacon prioritization for conducting these evaluations,
feedyards, this system has already enabled the
through the supply chain. In total, the pilot program based on a risk-assessment model. As a result, cooperative to monitor key metrics and see how
successfully tracked the journey of our Applewood for each protein supply chain, we will begin changes in production practices, feedstuffs and
Smoked Bacon from farm to restaurant: from nearly evaluating our direct suppliers of finished rations, among other measures, impact
600 producers and 4.6 million hogs to more than products, such as bacon or our hamburger sustainability.
400 deliveries to Wendy’s restaurants.
patties, as well as suppliers of raw materials and,
in some cases, all the way back to the farm.
2021 CORPORATE RESPONSIBILITY REPORT 18FOOD
rogress on antibiotics
P Key protein category highlights and updates:
Wendy’s has long believed that achieving greater In addition to implementing the Wendy’s Animal
supply chain visibility is key to meaningfully Care Standards Program and broader Responsible Eggs
reducing antibiotic use within our supply chain. Sourcing efforts, we also made progress in 2021 Following the 2020 launch of Wendy’s U.S.
We aim to increase visibility beyond our direct in several important areas within our protein breakfast menu, which significantly increased
suppliers to their suppliers who are responsible supply chains, despite industry disruptions and our use of eggs, we continue to work with
for animal care and handling. By implementing macroeconomic challenges: the egg industry to source eggs from a host
the Animal Care Standards Program and working of suppliers who are third-party certified,
with progressive suppliers, we are beginning to earning various certifications including
gain a better sense of the scope of antibiotic American Humane Certified®, Certified
Pork
use within our supply chain. We believe a greater Humane Raised and Handled® and United
In 2012, Wendy’s announced a 10-year goal to
understanding of that scope will ultimately support Egg Producers (UEP) Certified. Further,
transition our pork supply chain in the U.S. and
our efforts to establish baselines that will help us our U.S. egg suppliers are required to have
Canada away from sow gestation stalls
set strategies to achieve our 2030 goal. independent, third-party audits conducted
(individual enclosures), in favor of open pen or
annually by PAACO-certified auditors. Before
• B
y the end of 2024, through the Wendy’s Animal group housing, to allow confirmed pregnant sows
a supplier can be approved for the Wendy’s
Care Standards Program, we will work to map to socialize and exhibit natural behaviors. We are
System, it must undergo and pass a Wendy’s
and report on the use of medically important on track to complete this transition away from
Animal Welfare audit as well as a third-party
antibiotics and set targets and strategies to sow gestation stalls for confirmed pregnant
audit. Currently, we source predominantly
reduce antibiotic use over time within our sows in our supply chain by the end of 2022. Our
from conventional housing systems, with
beef and pork supply chains in the U.S. and website has more information about our policy
cage-free eggs representing approximately
Canada. This will build on our work to date and progress.
6% of our total U.S. egg supply. More
with progressive producers who are helping information is available on our website.
us find ways to reduce antibiotic use through
test programs and researching antibiotic
Beef
alternatives, such as probiotics, improved animal
Wendy’s was the first restaurant chain to partner
management practices, vaccines and more.
with Progressive Beef, an innovative animal
• B
y the end of 2030, our goal is that 100% of our care and sustainability program that is built on
U.S. and Canadian beef, chicken and pork will be industry-leading best practices and third-party
sourced from suppliers that prohibit the routine verification, and we are pleased to see continued
use of medically important antibiotics. adoption of the program within our beef supply.
2021 CORPORATE RESPONSIBILITY REPORT 19FOOD
CAVENDISH FARMS
Produce Coffee During our 2021 annual franchisee and supplier
Fresh produce is a signature of our menu, and The coffee served in Wendy’s U.S. and convention, Wendy’s presented Cavendish Farms with
the Good Done Right Award for sustainability efforts to
we continue to work to bring freshness and peak Canadian restaurants is sourced from
reduce waste and emissions, donate seeds, plant trees
quality and flavor to every item. 2021 marked Rainforest Alliance Certified farms, which
and fight soil erosion.
our third full year of exclusively providing meet comprehensive standards for the
greenhouse-grown tomatoes to Wendy’s protection of wildlands, waterways and Headquartered in Canada with operations in Canada
restaurants in the U.S. and Canada and our first wildlife habitat, as well as the rights and and the U.S., Cavendish Farms is taking commendable
full year of sourcing greenhouse-grown lettuce welfare of workers, their families and steps to reduce the company’s environmental
footprint, such as using treated potato waste as a
for salads and sandwiches in Wendy’s Canadian communities.
natural fertilizer, diverting potato waste to farmers for
restaurants. We plan to continue investing in
cattle feed and processing it into biogas to fuel the
greenhouse production, which provides quality We anticipate the volume of coffee that we company’s processing plants. The company’s biogas
benefits, while also using 90% less water and purchase from Rainforest Alliance Certified project helped to reduce greenhouse gas emissions
fewer (or no) chemical pesticides compared to farms to increase as we launch breakfast in in its largest facility by more than 50% and after
traditional outdoor growing methods. Canada in 2022. processing, the waste is used as natural fertilizer.
Cavendish Farms also works closely with watershed
organizations to support local sustainability initiatives.
Additionally, the company grows pollinator plant mix
and donates seeds to local groups, which supports
healthy environments for bees and other insects and
contributes to crop growth. Cavendish Farms also
plants trees on parts of its property not suited for
agriculture and reengineers large potato fields to
reduce the risk of soil erosion.
2021 CORPORATE RESPONSIBILITY REPORT 20FOOD
PEOPLE
Fostering equitable workplaces and communities
Increase the representation of underrepresented populations among Company
leadership and management, as well as the diversity of Wendy’s franchisees
WORKPLACE COMMUNITYPEOPLE
WORKPLACE 6
Our founder believed the impact we make on and management, as well as the diversity of our Company employees upon starting her role
others and our communities is just as important franchisees, and we outlined a set of five focus as our Chief Diversity, Equity and Inclusion
as the food we serve. We try to model this idea areas which we have further solidified. Officer as a way of understanding the
through our daily interactions with our team progress we have already made, challenges we
members and customers, and in the communities need to overcome and the opportunities that
where we do business. exist so we can thrive.
FOCUS AREAS:
Our Diversity, Equity and Inclusion goals
• I ncrease representation of women
reflect our ambition to have a workforce that
Diversity, Equity and Inclusion in leadership
reflects the communities we serve at all levels
Wendy’s Office of Diversity, Equity and • I ncrease diverse representation in of our organization. The Company’s senior
Inclusion, in partnership with our leaders and management and leadership leaders and Board of Directors are heavily
employees, is working to create a culture in
• Understand and address what has been involved in our strategy and played an integral
which everyone can bring their true, authentic
referred to as the “broken rung” role in the creation of the goals.
selves to work and have a sense of belonging
of leadership
that drives their ability to help fulfill Wendy’s
vision of becoming the world’s most thriving • I ncrease representation of diverse and
and beloved restaurant brand. That’s why our women-owned franchisees
We rely on the diverse perspectives of
approach is firmly grounded in our Company • C
ontinue to drive diversity on our people at all levels, and particularly
values, which we strive to live by daily. We the Board of Directors in leadership, to make us stronger as an
approach Diversity, Equity and Inclusion as a
organization. Wendy’s is committed to
business imperative, and are working to infuse it
devoting the time and attention required
through every part of our business. These goals will be backed by our Diversity,
to build our pipeline, train, recruit,
Equity and Inclusion Future Forward vision
advance and retain our people, and in
In our 2020 Corporate Responsibility Report, and a strategy that is focused on all people
doing so, implement the changes needed
Wendy’s announced a new goal to increase within our organization. This strategy was
to turn our goals into reality.
the representation of underrepresented informed by a listening tour and survey that
— DR. BEVERLY STALLINGS-JOHNSON, CHIEF DIVERSITY,
populations among our Company’s leadership Dr. Beverly Stallings-Johnson conducted with
EQUITY AND INCLUSION OFFICER
6
Unless otherwise expressly stated, this section is limited to Wendy’s Company employees, not franchisees or their employees.
2021 CORPORATE RESPONSIBILITY REPORT 22PEOPLE
In 2021, the Board of Directors expanded the Highlighting progress on our Diversity, Equity
ENGAGING EXTERNALLY TO ADVANCE scope of its Compensation Committee to and Inclusion Goals
DIVERSITY, EQUITY AND INCLUSION become the Compensation and Human Capital Driving an inclusive mindset and culture requires
WITHIN OUR ORGANIZATION Committee, adding oversight of the Company’s purpose and intention. Wendy’s launched an
human capital management strategies and updated Leadership Competency Model designed
policies, including, without limitations, those to help identify and reinforce competencies
Our memberships with the National
regarding Diversity, Equity and Inclusion. We commonly found in our leaders.
Diversity Council and Ohio Diversity
Council help us benchmark and continue also formally signed onto the CEO Action for
Diversity & Inclusion, a community of business In 2021, an Inclusive Mindset success factor
to learn from experts in the field and
leaders pledging to take action in their was incorporated into this model, and as part
monitor evolving news and trends in this
workplaces. Wendy’s senior leaders and Board of the roll-out, we defined expectations for this
area. Learning about Diversity, Equity
of Directors will continue to be highly engaged competency at our different leadership levels. The
and Inclusion experiences and practices
in working to achieve these goals by providing intended results include leadership that provides
shared by other industry leaders and
guidance, oversight and accountability for our allyship, reduces implicit bias, promotes belonging
organizations will continue to inform our
Diversity, Equity and Inclusion strategy, which and enhances work-life flexibility. To help drive this
focus areas and strategies.
is built on data and business insights. change, during 2021, Wendy’s rolled out a toolkit, a
webinar series featuring senior leaders, and other
OUR JOURNEY resources, including a self-development playbook
and an updated interview guide to assess
candidates for these success factors.
2019 Created multi-year strategy
Heightened education Demonstrating an inclusive mindset is
2020 and accountability
essential to being a great Wendy’s team
member and is identified as one of our five
Established Office of Diversity, Leadership Success Factors. Providing
2021 Equity and Inclusion
support to others different than you
and making everyone feel welcome are
AND Incorporating changes and
BEYOND demonstrating progress essential attributes of our culture.
Wendy’s leaders and President Stephanie Hightower of the
Columbus Urban League, at the 2021 CUL Empowerment
— COLEY O’BRIEN, CHIEF PEOPLE OFFICER
Day where Wendy’s was recognized with the Corporate
Empowerment Award
2021 CORPORATE RESPONSIBILITY REPORT 23PEOPLE R E P R E S E N TA T I O N B Y G E N D E R , R A C E A N D E T H N I C I T Y 7: This chart covers Wendy’s Company employees across our global presence in 2021, except the race and ethnicity information reflects U.S. employees only. Changes to the Company’s methodology to improve the accuracy of how we are tracking and reporting on 7 employee metrics account for the change in 2020 employee metrics and segmentation of those metrics compared to 2020 Corporate Responsibility report. 2021 CORPORATE RESPONSIBILITY REPORT 24
PEOPLE
Increase representation of women Increase diverse representation in To further make diverse representation a
in leadership management and leadership focus of our recruiting, Wendy’s is continuing
In 2021, we participated in McKinsey & Company The actions we will continue to take to increase to focus on training and education, including
and LeanIn.org’s annual “Women in the diverse representation in management and training related to implicit bias, and continuing
Workplace” study for the fifth straight year. leadership include: to leverage standardized processes and tools
We have continued to participate in this study • A
ctively monitoring and reporting on current to support our commitment to being a proud
to gain insight on how we are progressing in demographic data by race and ethnicity equal employment opportunity employer.
advancing gender diversity in our workplace.
• E
xpanding recruitment to institutions with
We consider this data to identify opportunities An important part of our strategy to recruit
strong diverse talent
for enhancing focus and practices that can diverse talent is continuing and expanding
truly make a difference, including in the areas of • C
ontinued commitment to training and our engagement with historically Black
recruitment, training and allyship. development in this area, including related to colleges and universities (HBCUs). Our
mitigating bias and allyship continued partnership with the Thurgood
In addition to driving change within our own • Leveraging our employee resource groups Marshall College Fund, a non-profit which
organization, Wendy’s Chief People Officer provides HBCU and PBI students with unique
Coley O’Brien, who has been a critical developer Inclusive recruitment scholarship, professional development and
of our Diversity, Equity and Inclusion strategy, Over this past year, we have expanded our career opportunities, is one of the ways we are
was elected to the board of directors of the talent acquisition team to help support our demonstrating our commitment to reaching
Women’s Foodservice Forum, which works to inclusive external recruitment efforts. We have a broad and diverse candidate pool (more
increase opportunities for women and cultivate also continued to grow our connections with information on our ongoing partnership with
gender-diverse leadership across the food diversity-focused agencies and organizations Thurgood Marshall College Fund can be found
service industry. and invested in new databases to help ensure in the Community section of this report).
our external job postings are reaching a broad Likewise, through our sponsorship of the 2021
and diverse candidate pool. We have also Historically Black Colleges & Universities
added a page for veterans on our Career Site Classic football game in Columbus, Ohio, and
and posted job listings on veteran-focused other similar events, our leaders have had an
recruiting websites. opportunity to engage with students and show
them what a career at Wendy’s can offer.
2021 CORPORATE RESPONSIBILITY REPORT 25PEOPLE
Understand and address what has been Increase representation of diverse and Continue to drive diversity on our
referred to as the “broken rung” of leadership women-owned franchisees Board of Directors
Two important roles in our organization are In 2021, we introduced and expanded our Having a Board of Directors that reflects the
restaurant general managers and district franchisee financing options to help support communities we serve is valuable to ensuring our
managers. We are proud that the majority of opportunities for new and existing franchisees, Company benefits from diverse perspectives. The
our general managers today are women and/or including women and entrepreneurs from Board seeks members from diverse professional
people of color. diverse backgrounds: and personal backgrounds who combine a broad
• First Women’s Bank: In 2021, to create spectrum of experience and expertise with a
However, we recognize that the representation of pathways into the Wendy’s System for reputation for integrity. More information on our
women and people of color declines at the next women entrepreneurs, Wendy’s supported Board composition, including the skills, attributes,
level of leadership at district manager, which is a First Women’s Bank as a Mission Partner. qualifications and diversity of our directors, can be
multi-unit operator role. McKinsey has noted this First Women’s Bank is a women-founded, found in our proxy statement.
as a potential trend, not limited by industry, and -owned and -led commercial bank with a
identified this as the “broken rung” for early-in- strategic focus on the women’s economy
career management positions. We are working to in the United States. Together, we will work THIRD-PARTY RECOGNITION OF
better understand and address the various factors WENDY’S CULTURE OF DE&I
to help bridge the gender lending gap and
that may contribute to this issue where possible expand economic opportunity for women-
and appropriate. owned businesses. A number of organizations recognized Wendy’s over
the past year for our commitment to creating an
• B
uild-to-Suit: In 2021, Wendy’s announced
inclusive culture:
a $100 million investment in a Build-to-Suit
• Forbes named Wendy’s one of the world’s 300 most
program to reduce barriers for potential
female-friendly companies — one of only three
franchisees. The program, which is available restaurant brands to make the list.
to franchisees in the U.S., Canada and the
• Human Rights Campaign (HRC) named Wendy’s
United Kingdom, enables eligible individuals
a Best Place to Work for LGBTQ Equality, and
who might otherwise not have the resources we received a 100% score on the organization’s
to operate a Wendy’s restaurant to do so Corporate Equality Index.
with decreased capital investment of their • In 2021, three Wendy’s Company employees
own. Wendy’s also created more competitive, received top recognition from the National
lower liquidity and net worth requirements Diversity Council for leadership in Diversity,
for all new franchise applicants. Equity and Inclusion.
2021 CORPORATE RESPONSIBILITY REPORT 26You can also read
