Subway Systems Australia Pty. Ltd. Australian · PDF fileSubway Systems Australia Pty. Ltd. Australian Packaging ... Working with our franchisee owned Independent Purchasing Companies

Subway Systems Australia Pty. Ltd.

Australian Packaging Covenant (APC)

Action Plan 2012-2015

8th February 2012

Subway Systems Australia Level 1, 42 Amelia St Fortitude Valley QLD 4006 T 1800 630 355 F 07 3852 4081 [email protected] www.subway.com.au 1

http://www.subway.com.au

http://www.subway.com.au

Executive Summary

Director’s Note

"Eat Fresh, Live Green" is our way of letting you know we are committed to making a positive impact in all that we do.

The SUBWAY® team is committed to providing a variety of great tasting, healthier food choices while reducing our environmental footprint and creating a positive influence in the communities we serve around the world.

Where feasible, we plan to:

• Reduce or eliminate unnecessary packaging;• Reduce the amount of source material;• Shift to more sustainable substrates;• Increase recycled content, recyclability, degradability and

compostability;• Optimize case configurations to improve logistical efficiencies; and• Reduce landfill waste stream.

This plan outlines our commitment to the APC and the specific actions we plan to undertake which will address Covenant Goals and KPI’s.

____________________________Brian TapRegional Director, Subway Systems Australia

Subway Systems Australia

Subway Systems Australia (SSA) is the Franchisor of the Subway® System in Australia. Subway Systems Australia does not currently run any other brands. SSA operates as Brand Owner as defined by the APC supply chain requirements.

Covenant Contact Officer

For any inquiries on the Australian Packaging Covenant Plan for Subway Systems Australia Pty. Ltd. please contact:

Ben Miles, Regional Marketing and Profitability Manager, Subway Systems Australia Pty. Ltd.

Ph. 1800 630 [email protected] PO Box 313 Fortitude Valley QLD 4006

Subway Systems Australia Pty. Ltd. - APC Action Plan 2

mailto:[email protected]

mailto:[email protected]

Our Commitment

Our vision is to make Subway® Restaurants and their operations as environmentally and socially responsible as possible. We strive to conduct business in a way that has a positive impact on the environment while improving the lives of our customers, franchisees, employees, vendors and communities worldwide. We believe that using good, environmentally sound business practices help increase our franchisees' profitability, improve our customers dining experience as well as help protect the planet.

We are committed to:

• Continuing to evolve our menu of great tasting, healthier options as well as providing access to nutrition and healthier lifestyle information;

• Striving to ensure our food meets the highest quality and safety standards;• Find sustainable and cost effective solutions that serve the business needs of our franchisees;• Focusing our sustainability initiatives on energy efficiency, water & resource conservation, waste reduction, sustainable

sourcing and supply chain management; and• Encouraging our franchisees to contribute to their communities, promote diversity and consider “environmentally friendly”

options and business practices such as building Eco-Restaurants.

As a nutritional leader, the SUBWAY® brand is committed to offering a full range of great tasting options for our customers around the world. Nutrition information is available on-line and in our restaurants so customers can make better informed meal choices. We are working continually to improve our menus and the nutritional benefit of our food, such as working closely with industry bodies such as The Australian World Action on Salt and Health (AWASH) to continually review the amount of sodium in our products and reduce/remove as much salt as possible.

Working with our franchisee owned Independent Purchasing Companies and Cooperatives (IPCA) around the world, the SUBWAY® brand is committed to pursuing sustainable initiatives that focus on energy efficiency, water and resource conservation, waste reduction, sustainable and ethical sourcing and supply chain management. We fully support principles of responsible farming, fishing and animal husbandry for the long term sustainability of the earth's natural resources.


As a global brand, we continue to make strides in sustainable packaging, cleaning products and waste management as well as to look for more efficient equipment and operational practices. Thanks to the work of SUBWAY® franchisees and the IPCA, many eco-friendly solutions have become part of our standard specifications and every day we work on more.

All SUBWAY® restaurants are individually owned and operated by independent franchisees. Many SUBWAY® franchisees pride themselves on being active, caring members of their communities and encouraging diversity. Also, many choose “environmentally friendly” options and business practices such as building Eco-Restaurants that, among other things, conserve electricity and water and reduce waste through recycling and/or composting where facilities exist. Currently we have 14 Eco-Restaurants open and operating worldwide, and more are being considered both here in Australia and around the globe.

We are proud of what we have accomplished so far, but we know there is more to do.

Together we can make a difference.


The History Of the Subway® Brand

The Seventeen-Year-Old EntrepreneurBack in 1965, Fred DeLuca set out to fulfill his dream of becoming a medical doctor. Searching for a way to help pay for his education, a family friend suggested he open a submarine sandwich shop.

With a loan of $1,000, the friend—Dr. Peter Buck—offered to become Fred’s partner, and a business relationship was forged that would change the landscape of the fast food industry.

The first store was opened in Bridgeport, Connecticut in August, 1965. Then, they set a goal of having 32 stores opened in 10 years. Fred soon learned the basics of running a business, as well as the importance of serving a well-made, high quality product, providing excellent customer service, keeping operating costs low and finding great locations. These early lessons continue to serve as the foundation for successful Subway® Restaurants around the world.

The SUBWAY® FranchiseBy 1974, the duo owned and operated 16 submarine sandwich shops throughout Connecticut. Realizing they would not reach their 32 store goal in time, they began franchising, launching the SUBWAY® brand into a period of remarkable growth which continues to this day.


A Fresh Future

Today, the SUBWAY® brand is the world's largest submarine sandwich chain with more than 36,000 locations around the world. We’ve become the leading choice for people seeking quick, nutritious meals that the whole family can enjoy. From the beginning, Fred has had a clear vision for the future of the SUBWAY® brand. As we continue to grow, we are guided by his passion for delighting customers by serving freshly prepared, delicious, made-to-order sandwiches.

Subway® Restaurants in Australia

The first Australian Subway® Restaurant opened in Perth in 1988, today there are over 1,300 Stores across Australia. All Subway® Restaurants in Australia are franchisee owned and operated, and the AUS/NZ Region is the most developed Subway® Restaurant market outside of North America.

Subway® Restaurants’ Australian Headquarters are in Brisbane, Queensland. The Brisbane Regional Office oversees all operations for Australia and New Zealand.

Our VisionBe the #1 Quick Service Restaurant chain in the world

Our MissionDelight every customer so they want to tell their friends, with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience.


Subway® Restaurant located in Norwood, South Australia

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* Please Note: The review date of each product category states when a review is expected to commence. This review period may take up to 6 Months before completion. Decisions on the future direction of each packaging item will be made during this time but implementation of desired changes may be completed at a later date due to the business requirements and availability of each product. Decisions made as a result of the review will be stated in future submitted APC plans.

SUBWAY® Packaging ItemsSUBWAY® Packaging ItemsCategory Product

SUBWAY® Packaging ItemsSUBWAY® Packaging ItemsMaterials Initial Review Date*

Paper wrap

Deli Paper

Paper wrapNapkin

Paper wrapPrep Tray

Paper wrap

Sub Wraps

Plastic Bags

Can Liners

Plastic BagsCatering Tray Bag

Plastic BagsPoly Sub Bag

Plastic Bags

T-Shirt Bag

Paper Bags

Paper Sub Bags

Paper BagsPaper T-Shirt Bags

Paper BagsSpecialty Bag

Paper Bags

Specialty Pouch

Cups and Lids

Cold Cup - Sm/Lg - Lid

Cups and Lids

Cold Cup - Small

Cups and Lids

Cold Cup - Medium

Cups and Lids

Cold Cup - Large

Cups and LidsCold Cup - Large - Lid

Cups and LidsHot Cup - Small

Cups and Lids

Hot Cup - Large

Cups and Lids

Hot Cup - Lid

Cups and Lids

Portion Cup

Cups and Lids

Portion Cup Lid

Hard plastic container

Catering Tray


Catering Tray LidHard plastic container Salad Bowls


Salad Bowl Lids

UtensilsKnife & Fork Kit

Utensils SpoonUtensilsStraws

Marketing Material

Promotional Translite

Marketing Material

Window ClingMarketing Material Floor StandMarketing Material

Instruction Sheet

Marketing Material

Sandwich Unit Cling4-Cup CarrierGiant Sub Carriers

100% Virgin Paper

Q4 2012Paper - 100% recycled content

Q4 2012Polyethylene lined SBS paper

Q4 2012

Paper - 30-40% recycled content

Q4 2012

Polyethylene Blend

Q1 2013Polyethylene Blend

Q1 2013High Density Polyethylene (HDPE) blend

Q1 2013

High Density Polyethylene (HDPE) blend

Q1 2013

Paper - 40% recycled content



Q2 2013

Paper - 50% recycled content

Q2 2013

High Impact Polystyrene (HIPS)

Q4 2013

Polyethylene lined SBS paper

Q4 2013

Polyethylene lined SBS paper

Q4 2013

Polypropylene (PP)

Q4 2013High Impact Polystyrene (HIPS)

Q4 2013Polyethylene lined SBS paper - 12% recycled content

Q4 2013

Polyethylene lined SBS paper - 12% recycled content

Q4 2013


Q4 2013


Q4 2013


Q4 2013

Polystyrene (PS)

Q2 2014Polyethylene Terephthalate (PET)

Q2 2014Polyethylene Terephthalate (PET) - 25% Post Consumer Resin

Q2 2014

Polyethylene Terephthalate (PET) - 25% Post Consumer Resin

Q2 2014

Polypropylene (PP)Q3 2014Polypropylene (PP) Q3 2014

Polypropylene (PP)Q3 2014

Polypropylene

Q1 2014PVC + PE coated triplan white cardboard backing

Q1 2014Paper (Hi bulk artboard) - FSC certified Q1 2014Paper - FSC certified

Q1 2014

Synthetic resin or plastic consisting of polyvinyl chloride or polymer

Q1 2014

SUS PaperboardQ2 2014

CorrugatedQ2 2014

* Please Note: The review date of each product category states when a review is expected to commence. This review period may take up to 6 Months before completion. Decisions on the future direction of each packaging item will be made during this time but implementation of desired changes may be completed at a later date due to the business requirements and availability of each product. Decisions made as a result of the review will be stated in future submitted APC plans.

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1. Design - Optimise packaging to achieve resource efficiency and reduce environmental impact

Performance Goals and KPI’s

1. Design - Optimise packaging to achieve resource efficiency and reduce environmental impact 1. Design - Optimise packaging to achieve resource efficiency and reduce environmental impact 1. Design - Optimise packaging to achieve resource efficiency and reduce environmental impact 1. Design - Optimise packaging to achieve resource efficiency and reduce environmental impact 1. Design - Optimise packaging to achieve resource efficiency and reduce environmental impact

Actions Responsibility Baseline Data Target Milestones

KPI 1: Implement the Sustainable Packaging Guidelines (SPG) for

design or procurement of packaging.







Review the SPG to understand requirements for assessment of current practices

Global Corporate Social Responsibility Team Compare SPG guidelines to our current 2015 Strategic Plan for Corporate Social Responsibility and assess differences

Incorporate all relevant aspects of SPG into our current 2015 Strategic Plan

Q3 2012

Education of all stakeholders on the SPG to give relevant persons ability to assess packaging requirements that meet the SPG standard

Global Corporate Social Responsibility Team, Key Stakeholders

Review not yet conducted Educate all relevant stakeholders on the importance of the SPG, and how we can use the guidelines within our current structure

Q4 2012

Develop an assessment process to determine SPG opportunities for future product development

Global Corporate Social Responsibility Team Corporate sustainable packaging guidelines

To have assessment process in place, with new packaging to be reviewed inline with SPG where possible

Q4 2012

Review existing packaging range in line with dates set out in assessment schedule (“Subway® Packaging Items Table, p7”)

Global Corporate Social Responsibility Team Review of existing product material as outlined in “Subway® Packaging Items Table”, p7 of this document

Understand how SPG could be implemented for these products and look to review for opportunities where appropriate

Please refer to timeline outlined in “Subway® Packaging Items Table”,

p7.

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2. Recycling - The efficient collection and recycling of packaging


2. Recycling - The efficient collection and recycling of packaging 2. Recycling - The efficient collection and recycling of packaging 2. Recycling - The efficient collection and recycling of packaging 2. Recycling - The efficient collection and recycling of packaging 2. Recycling - The efficient collection and recycling of packaging


KPI 3: On-site recovery systems for recycling used packaging




KPI 4: Policy to buy products made from recycled packaging

Working with the global team, review existing in-store Subway® recycling programs from around the world to determine feasibility and appropriateness for Australian implementation

Global Corporate Social Responsibility Team Various recycling and composting currently in place in other countries in which the Subway® Brand operates

Investigation and testing of in-store recycling program to determine potential for rolling out to all Australian locations

Q2 2013

Work with Franchisees to determine large scale industrial bin recycling opportunities on-site where they do not currently exist with landlord

Country Corporate Social Responsibility Team, Operations, Franchisees

Currently Franchisees in Shopping Centre & Shopping VIllage locations have access to industrial garbage and recycling bins

Investigation within locations where a separation of waste and recycling does not occur, and work with the Franchisee/Landlord to investigate opportunities for improvement Q1 2014

Assist Franchisees in determining paperwork recycling guidelines for in-store business management where the Restaurant has office facilities on-site (i.e. Paper, Print Cartridges, Stationery, etc.)

Global Corporate Social Responsibility Team, Operations Team, Franchisees

Current global recycling policy and practices

Review global policy and adjust as necessary for Australian Region. Development of communication plan to Franchisees

Q4 2012

Explore feasibility of a recyclable corrugate program with a key suppliers. The exploration will investigate opportunities for a supply chain recycling program as a part of delivery schedule

Global Corporate Social Responsibility Team, Subway® Independent Purchasing Company of Australia

Best Practice examples from global operations

Investigation of opportunity for recycling collection program with our distribution suppliers

Q3 2014

Review existing policy that shows a commitment to increase the recycled content, recyclability, degradability and compostability where feasible, and look to expand/incorporate further aspects of APC suggestions to meet the policy standard.

Country Corporate Social Responsibility Team Current Global Policy in place. Current packaging items with recycled content include:• Napkins 100% recycled content• Subwrap 30-40% recycled content• Specialty bag & pouch 50%

recycled content• Salad bowls & lids 25% recycled

content

Review and prioritise feasibility exploration of potential opportunities to increase the amount of recycled content without negatively impacting functionality or cost

Q4 2012, Ongoing

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3. Product Stewardship - Demonstrated commitment to product stewardship


3. Product Stewardship - Demonstrated commitment to product stewardship 3. Product Stewardship - Demonstrated commitment to product stewardship 3. Product Stewardship - Demonstrated commitment to product stewardship 3. Product Stewardship - Demonstrated commitment to product stewardship 3. Product Stewardship - Demonstrated commitment to product stewardship


KPI 6: Formal processes for working with others to improve

design and recycling of packaging





KPI 7: Demonstration of other stewardship outcomes






KPI 8: Reduction of the number of packaging items in litter



Identify opportunities with suppliers to reduce source material from packaging products as well as inner packaging and master carton packaging for all food, product, equipment and small wares


Exploration of opportunities already underway.

Reduce source material from packaging products where possible, keeping goals in line with supplier capabilities, packaging quality, functionality and cost structure. Q4 2013, Ongoing

Identify opportunities with suppliers to optimise pallet case configurations (inner packaging and master carton packaging) to reduce the number of pallets & cartons used, and to reduce the environmental impact of the transport network. This applies to all Food, product, equipment and small wares


Current pallet case configuration Investigation of opportunity to optimise the master carton & case configurations for top 5 key products

Q3 2013, Ongoing

Work with suppliers to identify new recycling opportunities from their end of the supply chain, both in-store and before stock gets to our Distribution Centres


No baseline data Identifiable opportunities determined for optimising case pack size and materials used (including more sustainable substrates) to improve sustainability without affecting functionality or cost

Q2 2014, Ongoing

Monitor cost effective technological advances to improve degradability and compostability without impacting functionality or cost structure

Global Corporate Social Responsibility Team No baseline data Ongoing research and assessment of future opportunities, with a scheduled review every 12 months

Ongoing, Annual Review

Update training classes, for both new Franchisees/Franchisee workers and existing stakeholders, that update franchisees on the actions taken and Best Practices for sustainable

Global Corporate Social Responsibility Team Current Operations Manual guidelines on suggested recycling tips for in-store operations

Integrate relevant training topics into Franchisee Training Course and our ongoing University of Subway™ Resource for store & company staff Q1 2014

Work to improve the energy efficiency of our restaurants, including investigating more efficient lighting, electronic signage, product preparation equipment, refrigeration, etc.


Trial of energy efficient globes, efficient signage, efficient in-store equipment, etc. in trial in various locations throughout the world

Assessment of current trials underway globally and review for Australian appropriateness, expand/modify as necessary Q1 2013, Ongoing

Further our advances in water conservation through extending low-flow taps, motion sensing hand sinks and dual flush toilets in all restaurants, as well as reducing the amount of water/brine used in product preservation where possible.

Country Corporate Social Responsibility Team, Operations Team

Low-flow taps, motion sensing hand sinks, dual flush toilets in trial across Australia and further water saving initiatives being trialled globally. Some current food products investigated for a reduction in preserving brine/water

Initiate a water conservation communication plan to extend the trial work already underway. Aim to review all relevant products for a reduction in preserving brine/water.

Q4 2012

Encourage combined equipment orders for new locations and remodels

Global Corporate Social Responsibility Team, Operations Team, Subway® Independent Purchasing Company of Australia

Current equipment ordering process Working with suppliers and the Subway® Independent Purchasing Company of Australia, formulate a plan for how we can combine equipment orders for our projected store numbers per year

Q2 2013

Globally, further our work in investigating ECO-Restaurants which are designed to conserve resources during the development process and set the stage for efficient operations in the future.

Global Corporate Social Responsibility Team 14 Eco-Restaurants currently operational around the globe

Learn from Eco-Friendly trial restaurants in order to capitalise on chain-wide opportunities for further implementation of specific projects Annual Review

Encourage, and investigate strategies for, reduced bag usage by customers where not needed

Global Corporate Social Responsibility Team, Operations Team

Trial of paper bags in two Australian States, as per local legislation, where a reduction in bag usage has occurred. Trial of alternative operational procedures that eliminate the need for a bag for sandwich only purchases in Subway® Restaurants in other countries

Understand learnings from paper bag trial, investigate and trial further options for reducing bag usage with the end goal being to have a bag reduction strategy for all stores Q4 2012

Extend our global investigation of the use and availability of reusable bags for customers


Reusable bags trialled in Subway® Restaurants in other countries

Understand trial data of reusable bags. Initiate trial of bags for Australia and gauge customer and Franchisee feedback for future implementation opportunity

Q4 2012

Review operational procedures where feasible to incorporate recycling opportunities as a part of sandwich preparation, that eliminate the need for packaging prior to it entering the litter cycle


Elimination opportunities already under trial to remove packaging from the operational process

Removal of unnecessary packaging where possible and determine plan & time frame for future regular reviews

Ongoing throughout 2012-2014

Documents

Subway Systems Australia Pty. Ltd. Australian · PDF fileSubway Systems Australia Pty. Ltd. Australian Packaging ... Working with our franchisee owned Independent Purchasing Companies