2020 CORPORATE RESPONSIBILITY REPORT - Wendy's

Transcription

FOODGOOD DONE RIGHT2020 CORPORATE RESPONSIBILITY REPORT2020 CORPORATE RESPONSIBILITY REPORT 2021 Quality Is Our Recipe, LLC1

GOOD DONE RIGHT2020 CORPORATE RESPONSIBILITY REPORTT A B L E O F CONTENTSGOOD DONE RIGHT3 A letter from Todd A. Penegor8 UN Sustainable Development Goals4 Wendy’s at a glance9 Progress and goals5 About this report10 Food6 Governance19 People7 Materiality assessment andstakeholder engagement33 Footprint40 Metrics2

A LETTER FROM TODD A. PENEGORGOOD DONE RIGHTA letter from Todd A. PenegorGood Done Right. This simple phrase grounds Wendy’s approach to three critical areas of our business: Food, People andFootprint. Doing the right thing, the right way, has been at our core since our founder, Dave Thomas, opened the first Wendy’srestaurant more than 50 years ago.In 2020, Good Done Right took on a whole new level of importance aswe came together to face COVID-19.While we are still managing the impact of the global pandemic, I continue to be humbled by the actions of the entire Wendy’sfamily who have led with courage and commitment. Throughout, the health, safety and well-being of our teams and customersremained our top priority. And as we experienced an overdue social awakening, Good Done Right helped us think more criticallyabout diversity, equity and inclusion and our role in combating injustice.In releasing this second annual report, we are sharing the important actions we took to accelerate Good Done Right.Todd A. PenegorPresident and Chief Executive OfficerDave Thomas Foundationfor Adoption C E L E B R AT E D I T S10,000thADOPTION 500,000donated to advancesocial justice, youthand educationWe made tremendous strides in 2020, in part because we completed our first-ever comprehensive materiality assessmentto inform our strategy. With the help of outside experts, we engaged nearly 1,000 diverse stakeholders to identify Wendy’smost material topics that provide the greatest opportunity to make a positive impact. These findings informed existinggoals and helped us create bold new ones. Alongside those goals, we are also sharing a new set of metrics, based onestablished reporting frameworks, to track and report our progress. Some of this information is being shared for the firsttime in this report.I am proud of our many other accomplishments in 2020. Near to my heart, the Dave Thomas Foundation for Adoption celebratedits 10,000th adoption this year. Importantly, we donated 500,000 to advance social justice, youth and education in the Blackcommunity by significantly increasing our support of the Thurgood Marshall College Fund and engaging new partners, includingthe YWCA Columbus and Columbus Urban League. We announced and began implementing our Wendy’s Animal Care StandardsProgram, a new assessment tool that will allow us to recognize progressive suppliers within our protein supply chain and bettertrack farm conditions. We also conducted our first greenhouse gas (GHG) inventory, an important step in our climate roadmap.Everything we do revolves around our vision of becoming the world’s most thriving and beloved restaurant brand. I amimmensely proud of the entire Wendy’s family for all we have accomplished over the past year despite the significant challengeswe faced. I am confident that we have emerged as a stronger, more unified brand and are well positioned to achieve our GoodDone Right goals.Thank you, and stay well.President and CEO2020 CORPORATE RESPONSIBILITY REPORT3

WENDY’S AT A GLANCEGOOD DONE RIGHTAT A GLANCE2020 BUSINESS SNAPSHOT5,800 20 6%12M 1.7BRestaurantsofferingbreakfastNew menu itemsrolled out,including breakfastDigital growthin the U.S.Total Wendy’sRewards membersIn revenue31 COUNTRIES & U.S. TERRITORIES6,828Restaurants Across the ised14KCompany EmployeesOpening in 20212020 NOTEWORTHY AWARDSHeadquartered inDublin, Ohio2020 CORPORATE RESPONSIBILITY REPORTBest Places to Workfor LGBTQ Equality byHuman Rights CampaignGlobal Best Practice Winnerfor employee retention byBlack Box IntelligenceEnergy Efficiency InnovationAward by AEP Ohio for energyreduction efforts4

ABOUT THIS REPORTGOOD DONE RIGHTAbout this reportThis report provides an overview of Wendy’s activities related tocorporate responsibility topics and covers the 2020 calendar year,unless otherwise indicated. This report primarily covers materialbusiness updates across our U.S. and Canadian restaurants, whichcomprise a vast majority of our business footprint, unless otherwiseindicated. Information related to Wendy’s as an employer refersto The Wendy’s Company (including subsidiaries and affiliates) andemployees in our Company-owned restaurants, field support rolesand corporate staff. Prior to publishing this report, our most recentreport was published in 2020 and covered the 2019 calendar year. Weintend to continue to report on our strategy and initiatives, includingprogress on our goals annually.We are proud to be reporting to the CDP Climate questionnaire,a leading disclosure practice for environmental reporting, for thefirst time in 2021, covering our 2020 data. We also recognize leadingreporting standards such as the Global Reporting Initiative (GRI)and Sustainability Accounting Standards Board (SASB) and strive toembed their principles and frameworks throughout our report. Wehave included reporting indices at the end of the report reflectingdisclosures against these standards.We regularly communicate with our key stakeholders includingcustomers, employees, franchisees, shareholders, suppliers andnon-governmental organizations (NGOs), and we’d love to hear fromyou. For any questions or comments regarding topics covered in thisreport, please contact us at corporateresponsibility@wendys.com.2020 CORPORATE RESPONSIBILITY REPORT5

GOVERNANCEGOOD DONE RIGHTGOVERNANCEWendy’s is committed to maintaining strong corporategovernance practices as a critical component of drivingsustained stakeholder value.Highlights of our current governance practices include thefollowing: (1) annual election of directors, (2) majority voting fordirectors in uncontested elections with a director resignationpolicy, (3) separation of our Board Chairman and Chief ExecutiveOfficer, (4) majority independent board, (5) regularly scheduledexecutive sessions of non-employee and independent directors,(6) active board and committee oversight of risk management and(7) comprehensive Corporate Governance Guidelines and Code ofBusiness Conduct and Ethics.The board has had a dedicated, standing Corporate SocialResponsibility (CSR) Committee for the past several years. TheCSR Committee assists the board in reviewing and overseeingthe Company’s CSR strategic initiatives, including environmental,social and governance (ESG) matters, community involvement andoutreach initiatives and philanthropic endeavors. In fulfilling theseresponsibilities, the CSR Committee: R eviews, discusses and provides recommendations for theCompany’s overall approach to CSR, including current andpotential strategic initiatives2020 CORPORATE RESPONSIBILITY REPORT R eviews and approves certain charitable contributions madeby or on behalf of the Company R eviews and discusses risks and opportunities, emerging trendsand evolving best practices relative to the Company’s CSRstrategic initiatives C onsiders the impact that the Company’s CSR strategic initiativesmay have on Company performance, public perception, competitiveposition and key stakeholdersThe CSR Committee is composed of five board members, includingthe Chairman of the Board, who also serves as Chair of the Committee.The charter for the CSR Committee is publicly available on ourGovernance page listed below.We understand and recognize the important role that riskmanagement plays in shoring up a sustainable and resilient supplychain, managing climate risk and ensuring safe and responsiblework environments. We also recognize the role it plays in ensuringrobust ESG management practices. As such, our risk managementprocesses are designed to enable the responsible and transparentmanagement of all our products and processes. For more informationon our governance structure and approach, please visit ourGovernance page on our Investor Relations website.6

MATERIALITY ASSESSMENT AND STAKEHOLDER ENGAGEMENTGOOD DONE RIGHTWendy’s materiality assessment and stakeholder engagementWe are excited to share these findings for the firsttime in this report. With the support of a globalprofessional services firm, we engaged with nearly1,000 diverse stakeholders including members ofWendy’s board of directors, customers, employees,franchisees, shareholders, suppliers and nongovernmental organizations (NGOs); identifiedWendy’s 24 most material topics; and validated theresults of our materiality assessment with companyleadership. We organized our efforts under our Food,People and Footprint framework, which enables usto align these focus areas within the context of ourbroader business strategy. This equates to eightpriority topics: Packaging & Waste; Climate, Energy& Water; Food Safety & Quality; People & Ethics;Animal Care & Welfare; Nutrition; Data Security& Privacy and Traceability & Transparency.2020 CORPORATE RESPONSIBILITY REPORTW E N D Y ’ S M AT E R I A L I T Y A S S E S S M E N ITYFood SafetyBrand TrustI M P O R TA N C E T O S TA K E H O L D E R SA company’s sense of purpose and long-termthinking is critical in identifying impact. In the fallof 2019, we began a materiality assessment toinform our strategy and to help prioritize our effortsin these areas moving forward. With executivesponsorship from our Chief Corporate Affairs &Sustainability Officer and our Chief Financial Officer,the materiality assessment allowed us to conductthorough research and benchmarking, analyzeindustry and global standards and trends and engagea broad range of stakeholders to define and prioritizethe topics that we believe may have a significantimpact on Wendy’s, or could be significantly affectedby Wendy’s operations.TransparencyEthical Business PracticeSustainable Supply ChainAnimal Care &WelfareFair Labor Practices & Human RightsResponsibleSourcingFood WastePeople & CommunityRecyclingDiversity &InclusionFood QualitySustainable PackagingEmployee Recruitment& RetentionFranchise Health &EngagementGHG Emissions &Energy ConsumptionWater StewardshipClimate RiskDeforestationResponsibleMarketingData Security& PrivacyNutritionBoard DiversityI M PAC T O N B U S I N E S S O U TC O M E SLEGENDFood TopicsPeople TopicsFootprint Topics7

SUPPORTINGTHE UN SUSTAINABLE DEVELOPMENT GOALSFOODGOOD DONE RIGHTSUPPORTING THE UN SUSTAINABLEDEVELOPMENT GOALSWe recognize our work contributes to larger societal goalsaimed at unifying our collective global efforts to provide goodsand services more sustainably and drive towards a more equitableworld for all. As part of that, we align our efforts to the UNSustainable Development Goals, a framework that prioritizesthe top 17 global issues, and our work focuses on the followingimpact areas:FOOTPRINTWendy’s is inspired to drive positive change and we believe we are well positioned to do so through our ongoing corporate responsibility efforts and our newgoals. We’re committed to transparency through our corporate responsibility journey, and we will continue to benchmark our progress against globallyrecognized frameworks such as SASB and the UN Sustainable Development Goals.— Gunther Plosch, Chief Financial Officer2020 CORPORATE RESPONSIBILITY REPORT8

FOODPROGRESS AND NEW COMMITMENTSOURGOOD DONE RIGHTOUR PROGRESS1960sOUR GOALSOpened the first Wendy’s restaurant in Columbus,FOODOhio, serving fresh beef.Led the industry in introducing the first salad bar and1970sestablishing the Company’s commitment to fresh,Responsibly source our top 10 priorityfood categories by 2030.quality ingredients.1980s1990s2000s2010sGOOD DONE RIGHTIntroduced lower-cost menu items, increasing foodaffordability and access.Founder Dave Thomas, who was adopted as a child,established the Dave Thomas Foundation for Adoption (DTFA).PEOPLEEstablished best-in-class Animal Welfare Program withexpanded audits and expert Animal Welfare Council.Increase the representation of underrepresented populations among Company leadership and management,as well as the diversity of Wendy’s franchisees.Joined U.S. Department of Energy’s Better BuildingsChallenge as one of the first in the restaurant industry.Advanced commitment to fresh ingredients by transitioning togreenhouse-grown tomatoes for all North American restaurants.FOOTPRINTCelebrated the DTFA’s 10,000th adoption.2020sCompleted Company’s first greenhouse gas inventory.Benchmark, track and reduce our Scope 1, Scope 2and Scope 3 greenhouse gas emissions and seta science-based target by the end of 2023.Donated 500,000 to support youth, social justice andeducation in the Black community.Click to see our full highlights journey.2020 CORPORATE RESPONSIBILITY REPORTSustainably source 100% of our customer-facingpackaging by 2026.99

GOOD DONE RIGHTFOODDelivering high-quality food, transparently20 20C O RPO RATERES PO NS I BI L I TYREPO RT

FOODGOOD DONE RIGHTFood safetyAt Wendy’s, high-quality food, producedresponsibly and delivered transparently,is our commitment to every customer.status of key menu items as they make theirway through supply chains to our restaurants.In 2020, more than 11 million data points wereuploaded into WeSafe.Delivering A Safe, Wholesome Food SupplyAt Wendy’s, we: Supply Verify that produce suppliers are usingprogressive Good Agricultural Practices whenBuilding on our foundationWendy’s complements its own establishedin-house food safety standards with expertpartnerships to maintain our unwaveringcommitment to safe food. We recognize thatserving safe products requires transparencyabout where every ingredient comes from,how it is handled on its journey to us andwhat processes we and others use to turningredients into finished meals.For example, when tracking Wendy’s fresh,never-frozen beef1 sourced from North America,WeSafe tracks and analyzes production, productsampling, cold chain temperature data and more.The data WeSafe tracks is available to us and oursuppliers in real-time. This level of transparencyand quick collaboration further demonstrate ourcommitment to delivering the high-quality, safefood our customers expect.it comes to soil, water and plants and that ourgreenhouse suppliers are employing high-techgrowing systems; Validate compliance of our animal welfarecommitments at supplier facilities; Visit manufacturing plants and farms to confirmsupplier capabilities and compliance firsthand; Evaluate manufacturing plant production systemsto ensure product consistency, quality andregulatory compliance; Engage independent auditors to assessmanufacturing plant programs and identifyopportunities to improve; Conduct pathogen, shelf-life and stability tests asWeSafe: tracking the elements of qualityWendy’s is a long-time leader in the developmentand execution of quality processes and initiativesthat are focused intensely on providing a safeand wholesome food supply, and we are alwayslooking for ways to strengthen our processesfurther. Over the past five years, Wendy’s hasinvested in a new innovative digital system, calledWeSafe, to help streamline the supply chaindata tracking process needed for our qualityassurance program. This new system integratesall the unique data streams that measure thepart of our food safety protocol; Collect data from critical aspects of themanufacturing process and make it accessible toour suppliers through WeSafe; Randomly select product samples from ourdistributors for lab analysis and visual inspection; Require refrigerated trucks to have automatedGPS temperature monitoring systems withalarms to ensure our menu items stay at the righttemperature for safety and quality; And track customer feedback to identify trendsand resolve issues.1 Fresh beef available in the contiguous U.S., Alaska and Canada.2020 CORPORATE RESPONSIBILITY REPORT11

FOODGOOD DONE RIGHTTagged for quality: piloting RFID technologyWendy’s is currently testing radio frequencyidentification (RFID) tagging technology topotentially improve the traceability and efficiencyin the way we handle supplies. These passiveelectronic tags affixed to cartons (of produce,meat, cutlery and other products) containinformation about contents and expirationdates, and handheld scanners make it easy toview that data. While the program is still in thepilot stage, early results suggest this technologycould reduce receiving time by up to 90% andcut inventory counting time in half, while alsoreducing food waste. Time is valuable and thesesavings could allow Wendy’s team members tofocus even more on our customers.Partners in safetyIn addition to reinforcing all the necessary trainingand cleaning procedures for great restaurantoperations, we expanded our relationship withglobal hygiene and safety expert Ecolab in 2020.They have long provided the essential cleaningmaterials and systems for our restaurants: Nowtheir EcoSure division is helping us raise thebar even further when it comes to operationalexcellence at the restaurant level through theirsophisticated public health technology andbest-in-class safety benchmarking.2020 CORPORATE RESPONSIBILITY REPORT12

FOODGOOD DONE RIGHTFood qualityWendy’s is committed to responsiblyGuided by our food vision, Fast Food Done Right,we’ll continue to push the envelope to deliverthe best possible menu items while providingtransparent information on sourcing practices,nutrition and allergens.Wendy’s food vision: Fast Food Done Right“Quality” can be a broad term. That’s why we’respecific about what elements go into Wendy’sfood vision and our approach to quality food:Real, Fresh, Craveable, Forward-Leaning andDoesn’t Cost a Fortune.High-quality innovationsIn addition to our food vision, we actively conductrobust customer sensory testing to help fuel ourmenu innovation pipeline and inform ingredientsourcing decisions. This, combined with how welisten to our customers, crew members, franchiseesand suppliers, helps us innovate our menu.Highlights in 2020 include our efforts to improvecore menu items, like our revamp of the ClassicChicken Sandwich; our continued investmentin sourcing the freshest ingredients, such asgreenhouse-grown lettuce in Canada; and ourwork to develop and launch breakfast across theUnited States.G OA Lsourcing2 our top 10 priority foodcategories by 2030. The top 10,determined by spend and impact onthe world around us3, include:Breakfast: new time and tastes;same great qualityOur croissants are made the traditional way,with real butter. Our biscuits contain realbuttermilk. The sauce is true Hollandaise sauce,with Swiss cheese blended in. Our eggs aregrade-A and fresh-cracked.Responsible sourcingA higher standardWe continuously improve how we source ouringredients and how we demonstrate accountabilityfor ethical business practices, sustainability andsocial responsibility. That is why we are building onour long-standing work in this area by formalizingour approach to responsible sourcing.To deliver the best dining experience, we have to usethe best ingredients, and that starts with sourcing fromlike-minded supplier partners. We’re building on theseefforts and committing to responsibly sourcing ourtop 10 priority food categories by 2030.PROTEIN Beef Chicken PorkBeef (bacon and sausage) Dairy(Frosty and cheese)ChickenEggs (bacon and sausage) BeefPork lettuce/leafy greensTomatoesand ChickenDairy(Frostyand sP R OPorkDU C E (baconseasoned potatoes) Dairy(Frostyandcheese) greensTomatoesandlettuce/leafy Beverages (cold drinks and coffee) EggsPotatoes (fries, baked potatoes, Bunsand bakery(buns, biscuits,seasonedpotatoes) Tomatoeslettuce/leafy greenscroissants,andcookies) Beverages (cold drinks and coffee) Potatoes(fries, shortening/fryingbaked potatoes, oil, margarine)Oils (dressings,O T H EBunsRseasonedpotatoes)and bakery(buns, biscuits,croissants, cookies) Beverages (cold drinks and coffee) Oils (dressings, shortening/frying oil, margarine) Buns and bakery (buns, biscuits,croissants, cookies) Oils (dressings, shortening/frying oil, margarine)— Liliana Esposito, Chief Corporate Affairs & Sustainability Officer2 We are in the process of developing environmental and social criteria to define what responsible sourcing means for each food category. The criteria will be informed by a lifecycle assessment of our priority food categories, our Animal Care Standards Program,and a human rights risk assessment and through collaboration with key supply chain partners and stakeholders. We will use the criteria to understand our current status, set new targets and demonstrate progress and transparency through reporting.3 We will utilize the results of the lifecycle assessment, which Wendy’s is undertaking in 2021, to confirm our top 10 priority food categories.2020 CORPORATE RESPONSIBILITY REPORT13

FOODImplementing the Animal Care Standards ProgramEnsuring the humane treatment of animals has been a core element ofWendy’s quality assurance and supply chain practices for decades andmany of the requirements we’ve developed for our suppliers have setthe standard for the quick service restaurant industry. We are guidedby our long-standing relationships with progressive industry experts,many of whom serve on our Wendy’s Animal Welfare Council, andour data-based approach to animal welfare. Over the last two years,we have expanded the council to include expertise in auditing, animalscience, well-being and behavior, with specialties across our key proteincategories. We tasked the council with helping us raise the standards weapply to our protein supply chain and the process for driving continuousimprovement. In 2020, we announced the first milestone of that effort,the new Wendy’s Animal Care Standards Program.To inform the development of new standards, Wendy’s Animal CareStandards Program uses a detailed assessment tool that allows us torecognize progressive suppliers, better track farm conditions and animalcare and quantify the results. While we’ve always audited, for the first timewe are cataloguing the animal welfare best practices of all protein supplyfacilities, including 15 measures of welfare. We began implementing theprogram in 2020 by piloting the framework and validating the metrics toensure its effectiveness in establishing new, even higher standards. Bythe end of 2024, Wendy’s expects to have a comprehensive accountingof animal welfare best practices for beef, pork, chicken, eggs and dairy.This new level of visibility will allow us to identify progressive work and givepreference to suppliers who go the extra mile—like our suppliers that arestudying the impact of lighting on broiler chicken behavior or reducing theuse of medically important antibiotics, meaning antibiotics important fortreating human disease, in our beef and pork supply chains.2020 CORPORATE RESPONSIBILITY REPORTGOOD DONE RIGHTTHE WENDY’S ANIMAL CARESTANDARDS PROGRAM ASSESSMENTSuppliers will be assessed in the following areas, with performance resultsadjusted for demonstrating progress in traceability and transparency,antibiotic use, stocking and housing conditions and euthanasia and stunning.Animal Management ProgramsAnimal HealthFostering a culture of animal care byPrioritizing the health of theimplementing animal managementanimals by providing quality careprograms that promote training, includeunder expert veterinary oversightrobust auditing and biosecurity measuresto minimize necessary medicaland provide traceability throughout theinterventionanimals’ lives. Antibiotic Use Traceability & Transparency Feed Additives Auditing & Certification Diet & Nutrition Employee / Contractor Training Genetic Influences on HealthProgram Biosecurity Program Animal Welfare Advisory & ResearchPhysical AlterationsAnimal Husbandry, HousingAvoiding physical alterations by onlyand Slaughterimplementing such treatments whenOperating with care by providing athey are in the best interest of the animalcomfortable environment for animalsand, when necessary, doing so humanely.and allowing them to exhibit their Physical Alterations Castrationnatural behaviors. Stocking & Housing Conditions Catching/Handling of Animals Transportation & Lairage Euthanasia & Stunning14

FOODGOOD DONE RIGHTFood qualityAs we have begun to implement the Wendy’sAnimal Care Standards Program and ourbroader Responsible Sourcing efforts, wehave also continued to make progress in severalimportant areas within our protein supply chain:BeefWendy’s was the first restaurant chain topartner with Progressive Beef , an innovativeanimal care and sustainability program that isbuilt on industry-leading best practices andthird-party verification. As of the end of 2020,approximately 40% of Wendy’s U.S. fresh, neverfrozen beef1 supply is sourced from ProgressiveBeef-certified feedlots. That represents a 15%increase from the prior year and demonstratesprogress toward our goal of sourcing more than50% of our supply from cattle raised under theProgressive Beef program (or the equivalent)by the end of 2021.As part of our commitment to gauge the useof antibiotics within our beef supply chain andto reduce it meaningfully over time, Wendy’s hasengaged with a consortium of beef producerssince 2017 on this topic. In 2020, nearly a thirdof Wendy’s beef supply came from producerswho have made a science-based commitmentto at least a 20% reduction in the use ofBlockchain: A pork industry firsttylosin, the most common medically importantantibiotic used in fed cattle. More on our beefantibiotic reduction efforts can be found onour website.ChickenWendy’s has completed the process ofeliminating all antibiotics important to humanmedicine from chicken production in the U.S.All chicken served in Wendy’s U.S. restaurantsmeets this requirement and is Process Verifiedby the U.S. Department of Agriculture to ensurecompliance. With our suppliers and our AnimalWelfare Council, we are actively exploringwelfare-enhancements to broiler chickenhousing, as well as new stunning methods.Pork We are committed to eliminating the use of sowgestation stalls in our North American supplychain by the end of 2022. We remain on trackwith that commitment. We are also working withsuppliers and farmers who have committed toan intensive traceability protocol, supportingour goals to track, trace, monitor and reporton animal medical treatment histories. Someproducers are helping us dive even deeper onavailable antibiotic use data.Did you know that blockchain tracks more thanlocation? Blockchain is an innovative, emergingtechnology that’s gaining traction acrossindustries, but it has yet to be widely adopted.It creates reliable, unalterable records acrossthe supply chain, helping substantiate theresponsible sourcing we demand. Wendy’s isworking with industry partners to test the use ofblockchain technology to track and trace someof our Applewood Smoked Bacon through everystep of the supply chain—a pork industry first.The coding in our cases of bacon links directlyback through every step of the Wendy’s supplychain to provide visibility and validation ofprogress on animal welfare and care, includingantibiotic use, the phase-out of gestation stallsand other key factors.Traceability underscores our commitmentto quality and we’re actively exploring newavenues from farm to restaurant to get as farback in our supply chain as possible. Pilotingblockchain technology is one avenue thatproves Wendy’s is walking the walk whenit comes to responsible sourcing, giving ourcustomers confidence in where their foodcomes from. We look forward to continuingto explore technology solutions to help usdeliver on our traceability goals.— Jorge Hernandez, Vice President of Quality Assurance1 Fresh beef available in the contiguous U.S., Alaska and Canada.2020 CORPORATE RESPONSIBILITY REPORT15

FOODEggsIn 2016, breakfast was an optional menu offeringfor operators, and only a few hundred restaurantsin the U.S. and a handful of restaurants in Canadaserved breakfast. At that time, we committedto source 100% of our eggs for those breakfastlocations from a cage-free environment by 2020.As of year-end 2020, we met that goal. Today,we source a volume of eggs from cage-freeenvironments that is sufficient to supply thoseoriginal breakfast restaurants. However, since2016, the total egg volumes for the Wendy’ssystem have increased substantially because welaunched breakfast across the U.S. restaurantsystem in 2020.Approximately 5,800 U.S. restaurants now servebreakfast. We are working closely with the eggindustry to source more eggs from a host ofsuppliers who uphold strong animal welfarepractices and are third-party certified, in additionto suppliers who are exploring the latest research,best practices and systems for housing egg-layinghens today.Looking ahead, we expect our sourcing of eggsfrom cage-free systems–as well as from otheranimal welfare-enhanced systems–to steadilyincrease over time.2020 CORPORATE RESPONSIBILITY REPORTGOOD DONE RIGHTWendy’s is setting time-boundgoals to reduce antibiotic useIn 2016, Wendy’s set a long-term goal to phaseout the routine use of medically importantantibiotics within our supply chain. Since then,we have been actively working alongside ourWendy’s Animal Welfare Council and supplierpartners to find ways to meaningfully reduceantibiotic use while still allowing for thetreatment of animals when they get sick.By the end of 2030100% of our U.S. and Canadian beef, chicken andpork will be sourced from suppliers that prohibitthe routine use of medically important antibiotics.Wendy’s has been making steadyprogress on antibiotic reductionThis work, combined with our efforts to buildgreater traceability into ou

The board has had a dedicated, standing Corporate Social Responsibility (CSR) Committee for the past several years. The CSR Committee assists the board in reviewing and overseeing the Company’s CSR strategic initiatives, including environmental, social