Domino's Pizza Inc
DPZ on NYSE US25754A2015
Key Information
HQ:
United States
Market Cap:
$15.42bn
Primary Market:
North America
Meat Sourcing Engagement
Analysis Breakdown
Board oversight
Is the board briefed by management on the company’s strategies for mitigating environmental risks associated with their meat and dairy supply chains on at least an annual basis?
Domino's 2021 Corporate Stewardship Report states that "At the operational level, the Senior Vice President of Global Development & Sustainability assesses and manages stewardship risks and shapes strategy for the organization in partnership with other senior leaders who comprise our cross-functional Stewardship Steering Committee," and that the Steering Committee sets direction and drives accountability for addressing material issues and reporting progress.
Additionally, "the entire Board has determined to retain oversight of such initiatives and support the implementation of the Company’s ESG priorities rather than delegate these efforts to a specific Committee".
No mention of briefs on specific meat or dairy supply chain risk mitigation strategies.
*No change
Partial
Have company representatives presented to the Board on physical/transition risks from climate change impacts on commodity sourcing?
Domino's Senior Vice President of Global Development & Sustainability shapes the company's ESG strategy in collaboration with its ESG Steering Committee, who report to its CEO. The Audit Committee assists the Board in risk management and "the process established to identify, measure, monitor and manage risks, in particular major financial, information security and cybersecurity and food safety risks, with input from the Company’s internal committee dedicated to assessing and managing enterprise risk."
*No change
Yes
Supplier policy
Does the company have a publicly-available supplier policy that addresses the climate, deforestation, water use and quality impacts of its commodity suppliers?
Domino's supplier policy does address regulatory compliance on environmental regulations including wastewater discharge, air emissions, and waste handling. However, the policy does not mention deforestation or more broad climate and water impacts.
*Upgrade from DNF to Partial
Partial
Does the company have a supplier monitoring and verification system that ensures that direct and indirect suppliers meet the company’s environmental requirements?
The supplier policy establishes that companies must self-assess their environmental impacts, and that companies will be audited for compliance on general adherence to the supplier policy. However, there is no clear system of monitoring and verification conducted by Domino's specifically considering environmental requirements.
*Upgrade from DNF to Partial
Partial
Does the policy include a non-compliance protocol that specifies specific criteria (e.g. violation of no-deforestation pledge or major pollution incidents) that would trigger the suspension or termination of contracts and facilitates development of time-bound action plans for suppliers to return to compliance?
Domino's outlines termination of relationship or corrective action plans as possible consequences of non-compliance with the supplier policy. However, Domino's Supplier Code does not provide specific examples of criteria that would trigger suspension or termination of contracts.
*Upgrade from DNF to Partial
Partial
Does the policy specify that suppliers address all major emissions sources, including those related to land use change and deforestation, enteric emissions from animals, and emissions from manure and chemical fertilisers?
Domino's Supplier Code of Conduct does not ask suppliers to address specific emissions sources and only states that, "Suppliers must have systems in place to ensure the safe handling, movement, storage, recycling, reuse and management of waste, air emissions and wastewater discharge".
*No change
No
Does the policy ask direct suppliers to measure, report and reduce the greenhouse gas emissions associated with their direct operations and agricultural supply chains?
Domino's does ask for suppliers to meet regulatory requirements regarding greenhouse emissions. However, Domino's does not specifically ask for GHG reporting or set any guidelines for measurement and reduction in relation to the direct operation or agricultural supply.
*Upgrade from DNF to Partial
Partial
Does the policy specify that direct and indirect suppliers address all major sources of water pollution and waste in the animal protein supply chain, including slaughtering and processing activities, animal production (CAFOs), and feed production?
Neither the supplier policy nor any other policy specifies the animal protein supply chain as an area for direct and indirect suppliers to address on water pollution.
*No change
Partial
Does the policy encourage suppliers to set science-based and/or context-based targets on water?
There is no requirement in the supplier policy or another policy to measure, report on, or address water quantity and quality impacts of their direct operations s or agricultural supply chains beyond regulatory compliance levels.
*No change
No
Does the policy ask direct suppliers to measure, reduce (beyond regulatory compliance levels) and report on the water quantity and quality impacts of their direct operations and agricultural supply chains?
Domino's does not mention science-based targets for water in its Supplier Code of Conduct or any other publicly-available documentation.
*No change
No
Does the company have a time-bound, quantifiable zero deforestation/conversion-free policy that covers the entire supply chain for soy, cattle and palm commodities?
Domino's has several commitments related to palm oil which establish goals to prevent deforestation. Additionally, Domino's land use impacts assessment concluded that cattle (specifically feed) had no significant impacts on deforestation. Soy is not mentioned as a key supply chain component. There are no comprehensive or time-bound policies that cover deforestation for the whole supply chain. There was a time-bound quantifiable goal for palm oil that was achieved in 2015 but it was focused on traceability, not zero deforestation.
*No change
Partial
Targets
Has the company set a time-bound, quantitative reduction target for Scope 1 + Scope 2 GHG emissions?
Domino's set a new goal which is time-bound and quantitative to reduce scope 1+2 GHG emissions.
*Upgraded from Planned to Yes
Yes
Has the company set a time-bound, quantitative emissions reduction target that explicitly address Scope 3 emissions?
Domino's set a new goal which is time-bound and quantitative to reduce scope 3 GHG emissions.
*Upgrade from Planned to Yes
Yes
Has the company set time-bound quantitative targets to reduce water use in direct operations?
Domino's may in the future create time-bound quantitative targets regarding water use reductions, however, their current water reduction goals are not quantitative or time-bound.
*No change
No
Has the company set time-bound quantitative targets to reduce water quality impacts in direct operations?
There is no mention of quantitative targets to reduce water quality impacts in any publicly-available documenetation reviewed.
*New category
No
Has the company set time-bound quantitative targets that explicitly address water use and quality impacts in the supply chain?
There is no mention of time-bound water use and quality targets focused on the supply chain in any publicly-available documentation reviewed.
*No change
No
Risk assessment/Scenario analysis
Has the company committed to undertaking and publishing a scenario analysis in line with TCFD recommendations?
No mention of TCFD-aligned scenario analysis commitments is found in any publicly-available documentation reviewed.
*No change
No
Has the company conducted a water risk assessment across its direct operations?
Domino's has conducted risk assessments through SASB reporting guidelines for its direct operations (corporate stores, offices, and supply chain centers). *Upgrade from DNF to Yes
Yes
Has the company conducted a water risk assessment of suppliers & major commodities?
Domino's water risk assessment did not include indirect water consumption but the company states that it may do so in the future.
*No change
No
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Workstream Information
Last Updated:
14 June 2022
2022 Resources
Phase 3 | Progress Briefing Report Meat Sourcing Engagement