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2017-2018 Sustainability Report

TABLE OF CONTENTS
Welcome From Dave & Karen
About Dunkin’ Brands
Materiality Assessment
Progress & Goals
Our Sustainability Journey
Sustainable Food
Improving Menu Quality
Transparency & Labeling
Optionality
Our Commitment to Food Safety
Responsible Sourcing
Sustainable Restaurants
Respectful Guest Experience
Information Security
Sustainable Packaging
Recycling & Waste
Sustainable Building
Sustainable Communities
Energy & Climate
Water
Stakeholder Engagement
Our Employees
Diversity & Inclusion
Wellness at Dunkin’ Brands
Training & Professional Development
Our Franchisees & Licensees
Joy In Childhood Foundation
Employee Giving & Volunteerism
Charitable Partnerships
Governance & Ethics
Corporate Governance
Ethics & Compliance
Public Policy
About This Report

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WELCOME FROM DAVE


At Dunkin’ Brands, we like to say our cus- But with that honor comes a significant
tomers, franchisees, employees, and sup- obligation to do our part to get better in
pliers all share a common “DNA”: strong, the areas that matter most. We are on a
smart, and kind. journey to transform our brands, and it
is our commitment to get there in a way
It’s these qualities that fuel our system and that is not only sustainable, but that is also
allow us to grow responsibly in character strong, smart, and most importantly, kind.
and in business. We recognize that our
success is not our own, our achievements
are the result of a wide reaching system
to whom we are accountable. Our brands
are built on the dedication of hardworking Dave Hoffmann
men and women who took risks and made Chief Executive Officer, Dunkin’ Brands
sacrifices in search of something better –
building their own businesses, employing
those in their communities, and giving
back to the people they serve. And that’s
what we’re after, too: getting better.

We’re eliminating one billion foam cups


from the planet, introducing plant-based
proteins and vegan options for greater
choice, strengthening the sustainabili-
ty of our coffee supply chain, and giving
back to our communities through our Joy
in Childhood Foundation. It is a tremen-
dous honor to serve the millions of loyal
customers who come through our doors
every day, and to be represented by near-
ly 2,000 franchisee and licensee partners
around the world.

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WELCOME FROM KAREN


Dear Stakeholders, our aspirations a reality. Among our most ditionally, we have set a goal to remove
Welcome to Dunkin’ Brands’ 2017-2018 Sus- recent progress, I want to call out some all rigid-polystyrene lids in our system and
tainability Report. We are excited to share notable headlines: transition to a recyclable polypropylene
our sustainability progress over the past lid – with a projected 100% system con-
two years, as we and our franchisees strive Sustainable Food version by mid-2020.
to have a more positive impact on our cus- In the area of coffee sustainability, we
tomers, our communities, and the world continued taking leadership action – in We also continued to improve the environ-
around us. partnership with our franchisees and ven- mental impact of our restaurants through
dor partners – to strengthen sustainable our DD Green Achievement™ program
Dunkin’ and Baskin-Robbins are two brands practices within our supply chain and and the launch of the new next genera-
in transformation, and over the past two help ensure the most responsible, ethical tion concept stores for both Dunkin’ and
years we have made tremendous strides and beneficial growing and harvesting of Baskin-Robbins. The new concept store
with our efforts to drive positive, notice- the product at the heart of our business. for Dunkin’ is almost 30% more energy-ef-
able change for our customers. A critical These efforts include new partnerships ficient than our previous restaurant mod-
part of our journey is taking bigger, bolder with World Coffee Research and the Sus- el. We currently have more than 340 DD
action to be more socially responsible in all tainable Coffee Challenge. Green Achievement restaurants in the U.S.
the ways we operate. A greater commit- with a goal to open a total of 500 by the
ment to our communities and our world is Around menu improvement, we took fur- end of 2020.
what customers expect from brands like ther steps to deliver greater options and
ours – and what we demand of ourselves. more relevant choices for our guests. We Sustainable Communities
The following pages highlight how we successfully removed all artificial dyes from Our franchisees, crew members, employ-
are stepping up to this commitment and nearly all our products. And we built out ees and guests continued giving back to
strengthening our leadership in the area of our platform of better-for-you offerings, our communities through their support of
responsible, sustainable growth. with an eye toward expanding our vegetar- our Joy in Childhood Foundation®. Over
ian and vegan options moving forward. the past two years, we donated millions
We have organized our corporate respon- of dollars to help battle childhood hun-
sibility efforts around three main pillars: Sustainable Restaurants ger and illness. In addition, we launched
• Sustainable Food When it comes to sustainable packag- new community-support initiatives, while
• Sustainable Restaurants ing, we made a watershed commitment thousands of our franchisees, crew mem-
• Sustainable Communities to replace all polystyrene cups used in bers and employees carried on their tradi-
our restaurants with a new double-walled tion of volunteering in food banks across
Across each of these areas, we have put paper cup by mid-2020. Our transition the country.
big stakes in the ground, pushed innova- to paper cups will remove 1 billion foam
tion, and designed solutions to help make cups from the waste stream annually. Ad-
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We have also remained committed to our We are extremely proud of all we have ac- and bringing more innovative solutions
people here at Dunkin’ Brands and are fo- complished and humbled in knowing that forward. Guided by our brand principles of
cused on continuing to improve our cul- it truly takes a village. We could not have stronger, smarter, kinder, we and our fran-
ture so that employees feel empowered, moved forward and accomplished all we chisees are committed to always doing
valued and included. We made signifi- did without the support and partnership what’s right for our customers, employees,
cant strides in strengthening the diversity of our franchisees, employees, vendors suppliers and the planet we all call home.
of our workforce and are delighted that and our customers, who love our brand,
Dunkin’ Brands was named one of the want us to do good, and continuously Thank you for taking the time and inter-
BEST Places to Work for LGBTQ Equality push us to be a better corporate citizen est in our sustainability efforts. I welcome
by the Corporate Equality Index. We will every day. To all of you, we say thank you. your feedback on this report by contact-
continue making improvements to ensure ing CSR@dunkinbrands.com.
Dunkin’ Brands remains an exceptional And as always at Dunkin’ we’re staying
focused on what’s next. This is an ongo- Warm Regards,
place to work!
ing journey, and we realize we have much
You will find much more detail on these more that we need to accomplish. As you
and many other initiatives in the pages that read our report, know that we are hard at Karen Raskopf
follow – all of which give you a true sense work taking our next steps – driving our ini- Chief Communications & Sustainability
of the breadth and depth of our actions. tiatives further, expanding into new areas, Officer, Dunkin’ Brands

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ABOUT DUNKIN’ BRANDS


Dunkin’ Brands Group, Inc. (NASDAQ: other business matters. All of their com- Partners for a
DNKN), headquartered in Canton, Massa- panies have their own names, employ- Better Tomorrow
chusetts, is the parent company of two ees, operations, and leadership teams. In
of the world’s most known and loved essence, since we are 100 percent fran- At Dunkin’ Brands we are committed to
brands: Dunkin’™ and Baskin-Robbins™. chised, the extent of Dunkin’ Brands’ in- providing our guests with great coffee
As one of the world’s leading franchisors fluence is different than that of our com- and great food, fast, while still provid-
of quick service restaurants (QSR), we petitors who own all or a greater portion ing a great restaurant experience. Our
have more than 20,900 points of distri- of their restaurants. We work closely in
three-pillar sustainability strategy is in-
bution in over 60 countries worldwide. partnership with our franchisees to make
tegrated into our business strategy.
In 2018, we reported $11.6 billion in sys- sure they continue to be the best repre-
tem-wide sales and company revenues of sentation of our brand and values.
$1.3 billion. Dunkin’ Brands opened 440
and 392 net new restaurants globally in SUSTAINABLE
2017 and 2018, respectively. FOOD
Taking pride in the
Our more than 20,900 restaurants global- Dunkin’ & Multi-Brand Restaurants* food and beverages
ly are supported by our corporate entity we serve.
as franchisor, however they are ultimately 1,030 U.S. franchise owners
owned and operated by a network of near- 54 international operators
ly 2,000 independent business owners. 9,419 U.S. restaurants SUSTAINABLE
Dunkin’ Brands owns two buildings in the 3,452 restaurants in 43 international RESTAURANTS
U.S. – our corporate headquarters in Can- markets Respecting the
ton, Massachusetts and our learning facil- greater environment
ity in Braintree, Massachusetts. Our fran- Baskin-Robbins Restaurants* we operate in.
chisees are independent business owners 758 U.S. franchise owners
who own and operate their franchised
135 international operators SUSTAINABLE
restaurants. They license our brand for
their companies and are solely respon- 2,550 U.S. restaurants COMMUNITIES
sible for all business decisions related to 5,491 restaurants in 53 international Honoring the people
their restaurants, including operations, markets who power our
training, and employment, among various brands.
*All numbers as of the end of FY 2018

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MATERIALITY ASSESSMENT
The Global Reporting Initiative’s (GRI) STEP 1: SUSTAINABILITY CONTEXT & IDENTIFICATION
Principles for Defining Report Content To set the broader context, and identify potential issues, we reviewed a wide range of
serve as the basis of Dunkin’ Brands, Inc.’s internal and external sources and inputs, including company financial and sustainability
(DBI) materiality assessment process. To reports, business plans, brand positioning and enterprise risk assessments; key organi-
conduct the assessment, we relied on a zational values, policies, strategies, goals and targets; internal sustainability documents,
combination of internal and external fac- including strategies and previous materiality findings; shareholder inquiries and resolu-
tors to assess relevant topics and their lev- tions; media audit reports; influencer and expert communications; investor and reputa-
el of priority. The process identified topics tional indices; industry and corporate peer sustainability reports, announcements and
that reflect the company’s significant eco- commitments; sustainability frameworks and reporting standards; regulation, proposed
nomic, environmental and social impacts legislation and policy trends; industry association reports; and consumer and societal
– both positive and negative – and the in- trend reports.
fluence these impacts have on stakehold-
To determine the potential material topics, each issue was analyzed through the following
er assessments and decisions. We also ex-
criteria:
amined the issues that pose the greatest
risk to DBI’s business and/or present op-
• Does the issue have a significant impact on people, society and/or the environ-
ment, and what is the impact?
portunities to advance sustainability.
• Does the topic present a business risk or impact that could harm the company’s
DBI engaged an independent consultancy reputation or impact performance?
to help identify and prioritize its material • Is this topic a top concern for stakeholders – such as investors, consumers, employ-
issues. ees, franchise owners, NGOs/influencers or policymakers – as evidenced by feed-
back, media trends, reports, pending legislation, campaigns/NGO actions, etc.?
There were four major steps in this pro- • Is this topic an existing priority for DBI, or was it considered material in the past?
cess: sustainability context and identifi- • Does the issue present an opportunity, such as a new or improved product, in-
cation of the material topics; stakeholder creased revenues, cost savings, reputational benefits or enhanced relationships
engagement and feedback; prioritization; with stakeholders?
and validation. • Is there existing or pending regulation related to the topic? How are relevant leg-
islators thinking about this topic?
• Does the company have control or influence over this topic?
• Is the topic considered material by rating, ranking or reporting agencies?
• Is the topic material to industry peers and/or do they report on it?
• Is the issue growing in relevance or likely to have significance in the future?

The result was the identification of 30 potential issues that fell into 6 categories.
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STEP 2: STAKEHOLDER ENGAGEMENT STEP 3: PRIORITIZATION STEP 4: VALIDATION


& FEEDBACK After input from both internal and external As a last step, the findings of the material-
The findings of the first phase informed stakeholders, including franchise owners, ity assessment and prioritization rankings
interviews with 15 internal subject matter our list of potential issues was trimmed to were vetted internally among senior lead-
experts and senior leaders in the company. 15 material issues including five that were ers and subject matter experts to ensure
Discussions covered feedback on prioriti- deemed “critical”, five “high priority” and the identified issues were material, priori-
zation of material issues; trends, consider- five “priority,” as detailed in the chart be- tized correctly and appropriately defined.
ations of operational realities influencing low. This prioritization was informed by
sustainability priorities; guest, investor the research and stakeholder inputs de- This process helps to fuel and inform our
and other stakeholder feedback; potential scribed above, and evaluated against four sustainability strategy. Upon completion
areas of risk and impact for the company; key criteria: of the materiality assessment, our lead-
and emerging issues on the horizon. • The issue’s level of positive and neg- ership team and subject matter experts
ative economic, environmental and convene to ensure our strategy is aligned
In addition, DBI engaged six external social impacts with our key material issues.
stakeholders covering the topics of sus- • The issue’s influence on stakeholder
tainable coffee, sustainable agriculture, assessments and decisions
packaging and food waste. Through these • The issue’s potential risk to DBI’s
conversations, we asked for input on the business
most salient issues the company should • The issue’s potential opportunity to
be prioritizing, stakeholder expectations advance sustainability
regarding these issues and opportunities
for the company to advance or evolve its
sustainability agenda. DUNKIN’ BRANDS MATERIAL ISSUES
Lastly, we conducted a survey with fran- HIGH
CRITICAL PRIORITY
chise owners for both Dunkin’ and Baskin PRIORITY
Robbins. The survey was sent to our en-
tire franchise system. The survey asked re- • Food safety • Sustainable agriculture • Transparency & labeling
spondents to evaluate the importance of • Respectful guest experience • Packaging • Animal welfare
each potential issue on a six-point scale • Franchisee relationship • Diversity & inclusion • Community Investment
– from “not relevant” to “very important to • Product quality • Responsible sourcing • Optionality 1
their business.” • Data security and privacy • Energy & water • Food waste

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2016 GOALS: PROGRESS OVERVIEW


GOAL PROGRESS MORE DETAIL

SUSTAINABLE FOOD

Remove artificial dyes from the Dunkin’ Dunkin’ and Baskin-Robbins have successfully eliminated arti- p. 12
and Baskin-Robbins U.S. menus by De- ficial dyes from key categories on their menu.
cember 31, 2018.

Source 100% Rainforest Alliance Certi- Our Dunkin’ brand currently offers 30% Rainforest Alliance p. 16
fied™ Dark Roast Coffee by the end of Certified™ Dark Roast Coffee. We continue to work with the
2018. Rainforest Alliance to bolster the supply chain to enable us to
increase our certified Dark Roast.

Review and update our Guidelines for We updated our Guidelines for Sourcing Palm Oil in Novem- p. 17
Sourcing Palm Oil for 2017, including set- ber 2017 with feedback from our suppliers, internal and exter-
ting clear policy compliance dates for our nal stakeholders. In addition, we’ve set compliance dates for
global business operations by the end of our global business operations. The updated guidelines can be
2017. found here.

Source 100% sustainably certified materi- 100% of the inputs for direct palm oil purchased through NDCP p. 17
als for direct palm oil purchases in U.S. by were claimed as RSPO certified, but only 82% were validated
Dec. 31, 2017. as certified. We continue to work with RSPO to meet our goal.

SUSTAINABLE RESTAURANTS

Update our standard restaurant proto- In January 2018, we revealed our new Next Generation con- p. 25
type for new restaurants to include new cept store in Quincy, MA that offered the first look at our U.S.
sustainability features by the end of 2018. store of the future.

Open 500 DD Green Achievement™ We are on track to meeting this goal; as of May 2019 we have p. 26
restaurants by the end of 2020. over 340 DD Green Achievement™ restaurants.

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GOAL PROGRESS MORE DETAIL

SUSTAINABLE COMMUNITIES

For our corporate facilities, we are com- As of 2018, we met our 2020 corporate facilities goal and re- p. 28
mitted to reduce energy use per square duced energy use per square foot by 28.6%. We understand
foot by 28%, compared to a 2013 base- that energy usage fluctuates and thus we must remain diligent
line, by the end of 2020; and 30% by the in our energy management processes to continue to reduce
end of 2025. consumption.

For our corporate fleet, we are commit- As of 2017, we met our 2025 corporate fleet goal and increased p. 29
ted to increase fleet fuel efficiency by 9%, fleet fuel efficiency by 13%.
compared to a 2013 baseline by the end
of 2020; and 13% by the end of 2025.

Map water use for our corporate facilities We mapped the water usage for our corporate facilities and p. 31
for 2017 and 2018 and design water re- have begun implementing new water reduction strategies.
duction strategies to implement by the
end of 2020.

Achieve a 3% improvement in overall em- In 2018 we introduced a new cloud-based, mobile-enabled en- p. 35
ployee satisfaction in our next corporate gagement tool that updates in real-time, allowing for a more
employee engagement survey in 2018. user-friendly experience. We have seen significant improve-
ment in employee engagement levels since implementation.

Launch company-wide unconscious bias This mandatory training was completed through an E-learning p. 38
training in 2018. format for all employees. This training supplements addition-
al training for Directors and Vice Presidents, which was intro-
duced the previous year.

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2018 GOALS
DUNKIN’ BRANDS 2018 SUSTAINABILITY REPORT GOALS

Commit to 100% compliance for sustainable, traceable, and no deforestation impact palm oil in donut fry oil
across our global operations by 2025.

Engage with RSPO on new supply chain certification model for franchise business and establish action plan
SUSTAINABLE for next steps by the end of 2020.
FOOD

Map our global coffee supply chain by the end of 2020.

Expand our vegetarian and vegan offerings on both DD/BR menus by 2020.

Increase the recyclability of our hot cup lids and transition our system to a polypropylene lid by mid-2020.
SUSTAINABLE
RESTAURANTS Through our DD Green Achievement™ program we will reduce energy consumption in our U.S. DD locations
by 20% by 2025.

Double our single-stream recycling rates at our corporate headquarters by the end of 2020.
SUSTAINABLE
COMMUNITIES
Increase engagement with international licensees on sustainability issues.

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OUR SUSTAINABILITY JOURNEY
Increased Transparency Responsible Sourcing
1997 2014
One of the 1st QSRs to list nutrition, ingredient, and allergen Launched 30% Rainforest Alliance Certified™ Dark Roast Blend
info online
2014 Introduced Rainforest Alliance Certified™ Iced Green Tea
2009 Made allergen information available in all restaurants/shops Published our Guidelines for Sourcing Palm Oil
2011 Published our first Corporate Social Responsibility report 2016 Began offering 100% Rainforest Alliance Certified™ espresso
2016 Nutrition, ingredient, & allergen information on mobile app 2017 All BR milk suppliers required to participate in F.A.R.M
Calories displayed on menu boards nationally for both brands
2018 Dunkin’ announces partnership with the NDCP and World Coffee
Research in support of coffee sustainability efforts

Dunkin’ joins the Sustainable Coffee Challenge

Better-for-you
Menu Items
2008 Introduced the Dunkin’ DDSMART® menu featuring our egg
white veggie breakfast sandwich & iced tea Sustainable Building
2009 Launched Baskin-Robbins BRight Choices® menu, featuring 2014 Launched DD Green Achievement™, our sustainable restaurant
reduced fat, no sugar added and light ice cream flavors, as well program
as frozen yogurt and sorbet
2014 Introduced almond milk at Dunkin’ restaurants
2018 Reduced sodium 12% across the Dunkin’ menu from 2012-2018
Animal Welfare
Better Sustainable 2018 All of our sourced chicken is raised with no antibiotics ever

Ingredients Communities
2007 Formed our Nutrition 2006 Launched the Dunkin’
Advisory Board for
input on brand menus;
and Baskin-Robbins
Community Founda-
Sustainable Work in Progress
Dunkin’ became the tion, now the Joy in Packaging Eliminate all polystyrene foam
cups from global supply chain by
first major QSR to Childhood Foundation
introduce a zero gram 2020
artificial trans-fat donut
2016 Published our
2018 The Joy in Childhood Sustainable Pulp and
Donuts fried in 100% sustainably
Foundation announced a Paper Policy
sourced palm oil
2018 Removed artificial dyes national in-residence
from key categories on facility dog program for 2018 Moved to certified Cage-free eggs by 2025
both the Dunkin’ and children’s hospitals, “Dogs paperboard, reflected in
Gestation crate-free pork by 2022
Baskin-Robbins menu for Joy.” our paper policy
A NOTE FROM ABOUT DUNKIN’ PROGRESS SUSTAINABLE SUSTAINABLE SUSTAINABLE GOVERNANCE ABOUT
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SUSTAINABLE FOOD Coffee producing region


of Northern Peru
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IMPROVING MENU QUALITY to partner with suppliers to find replace-


At Dunkin’ Brands, we strive to of- ments for ice cream cake decorations.
fer Dunkin’ and Baskin-Robbins guests Better-for-You
high-quality menu items. To do so, we To further our commitment to offer our
guests better-for-you menu items and At the beginning of 2019, Dunkin’ intro-
understand the need to continuously im-
prove our menu ingredients and items ingredients, in 2017 we removed artificial duced the Power Breakfast Sandwich.
to better suit the needs of our guests. In flavors from cream cheese spreads on the This new, better-for-you sandwich fea-
2018 we launched a new handcrafted line Dunkin’ U.S. menu. We continue to devel- tures an egg white omelet with spin-
of espresso drinks. Using our 100% Rain- op our menu items and from 2012 to 2018 ach, peppers and onions, topped with
forest Alliance Certified™ espresso, new we reduced sodium by 12% across the
turkey sausage and American cheese,
state-of-the-art equipment for optimal Dunkin’ menu by removing some items
and reformulating others. We are proud
served on thin, seeded multigrain sand-
bean extraction, and a new recipe for a
of this achievement but continue to ex- wich bread. At 370 calories, this sand-
stronger and more robust flavor profile,
we now offer our guests a high-quality plore opportunities to further reduce so- wich has 8 whole grains, 24g of protein
espresso experience, at a great value, fast. dium across our entire menu. Throughout and no artificial flavors or dyes and no
2019 we will be introducing additional high fructose corn syrup.
As part of our ongoing efforts to offer our delicious, better-for-you menu items. We
guests great tasting, high-quality products, are committed to making it easy for our
and cleaner menu labels, both Dunkin’ and guests to make the choices that are right
Baskin-Robbins have eliminated artificial for them while eating on the run.
dyes from key categories on their menu.
Dunkin’ has successfully removed artificial TRANSPARENCY & LABELING
dyes from donuts, baked goods, breakfast We believe it is important to provide clear,
sandwiches, coffee flavorings and nearly simple nutrition and ingredient informa-
all frozen beverages. We continue to work tion on menus and labels. Our guests de-
with our suppliers to identify a solution for serve to know the nutritional content of
Blue Raspberry COOLATTA®. Additional- the food and beverages they consume
ly, Baskin-Robbins has removed artificial from both our brands. All of our ingredi-
dyes from its ice cream sold at both its ent information is available on the Dunkin’
restaurants and in quarts and pints at retail and Baskin-Robbins websites. Our guests
locations as well as from its syrups, sauc- have the ability to easily see the caloric
es, and beverages, including Cappuccino content of our food and beverages at the
Blast®. The exception for both brands’ point of purchase in restaurant or on mo-
menus include select supplier-branded in- bile apps. In addition, our Guest Support
gredients produced by other companies team members are trained to respond to
and used as topping, ice cream inclusions all nutrition-related inquiries.
and decorative elements. We continue
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OPTIONALITY 2 Baskin-Robbins menus by 2020. In 2019, late chunks, and a chocolate ribbon. In No-
At Dunkin’ Brands, we are constantly we will be testing a MorningStar Farms® vember 2019 we will be launching a third
evaluating our menu in order to meet the breakfast sandwich as a meat-free alterna- non-dairy flavor. Our R&D and Culinary
needs of our guests. We strive to offer a tive in select U.S. markets. Additionally, we teams continue to innovate in this space,
variety of menu options that meet a wider will be launching two non-dairy and veg- and we are thrilled to be able to offer our
array of health and wellness concerns. an3 frozen desserts at Baskin-Robbins in guests increased options.
August 2019. Our guests will be able to go
From better-for-you to vegan and plant- into their local Baskin-Robbins to try our OUR COMMITMENT TO FOOD SAFETY
based options, our goal is to serve and Non-Dairy Chocolate Extreme, a choco- Food safety continues to be a top priori-
provide all guests with options no matter late flavored non-dairy and vegan dessert ty at Dunkin’ Brands. In order to minimize
their dietary preference. Providing choice with chocolate chunks and a chocolate rib- food safety risks in our Dunkin’ restau-
is a key element of our menu innovation bon, or Non-Dairy Chocolate Chip Cookie rants, Baskin-Robbins shops, and Central
at Dunkin’ Brands, and so we have made a Dough, a cookie-flavored non-dairy and Manufacturing Locations (CMLs), we con-
commitment to expand our vegetarian and vegan dessert with cookie pieces, choco- tinuously work with our suppliers, manu-
vegan offerings on both the Dunkin’ and facturing facilities, franchisees, licensees,
and their employees to evaluate our pro-
tocols and processes. We are constantly
evolving our food safety systems to best
protect our franchisees, guests, and busi-
ness. All of our domestic suppliers are au-
dited under Global Food Safety Initiative
(GFSI) standards and assessed annually
by our Quality Assurance team. All sup-
pliers are monitored against key perfor-
mance metrics to identify areas of oppor-
tunity and specification refinement.

Our franchisees must meet rigorous food


safety standards as defined in our Food
Safety systems, and are required to con-
duct monthly food safety self-assess-
ments to review the effectiveness of their
food safety practices and adherence to
our Cleaning and Sanitation and Pest Man-
agement Brand Standards.
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In 2018, our Manufacturing team joined • Produced a series of Food Safety edu- • Introduced new standards and require-
our Operating Systems and Restaurant cational videos that were presented to ments for Licensees that handle raw
Excellence team to better support the safe Franchisees across the country. produce.
operation of CMLs and ensure more direct
• Created several resources to support • Certified 100% of international ice
oversight by our Food Safety team. Our
our Pest Management Program includ- cream suppliers to a Global Food Safe-
Operations, Manufacturing, Food Safety,
ing a simplified “Standards at a Glance” ty Initiative (GFSI) benchmarked stan-
and third-party food safety support teams
document and training course to make dard and audited annually by the DBI
also evaluate restaurant-level food safety
it easier for franchisees & their pest man- Quality Assurance team.
during restaurant assessments.
agement providers to meet standards.
• Dunkin’ and Baskin-Robbins local sup-
In response to the Food and Drug Ad- • Continued improvement of the Food pliers to our international licensees
ministration’s Model Food Code Update Safety Review enabling alignment with have registered with DBI Quality As-
at the end of 2017, our Food Safety team the Food Safety System. surance on the NSF TraQtion Portal,
took on a comprehensive review of our and suppliers of ready to eat foods
food safety system in 2018. This review • Created Food Safety Review for CML
have provided GFSI certification, or
was conducted to ensure that our Brand locations.
satisfactory 3rd party audits.
Standards not only meet or exceed the • Conducted Food Safety calibration ex-
Food and Drug Administration’s Model • All Dunkin’ CMLs are audited by DBI
ercises with every Operations Manag-
Food Code, but also integrate manufac- Quality Assurance and NSF Interna-
er and added Food Safety calibration
turing facilities into a single comprehen- tional against DBI’s strict food safety
as a required onboarding element for
sive food safety system covering all areas standards and requirements.
all new Operations employees.
of our business.
• Approved new thermometers to in-
Additionally, in keeping with new indus- crease crew efficiency and enable
try best-practice food safety standards, in Bluetooth connectivity to Digital Tem-
2017 and 2018, we made several key im- perature Management systems.
provements to our systems including the
• Initiated Request for Proposal pro-
following:
cesses for both Pest Management and
• Updated our Crisis Recovery resourc-
Cleaning and Sanitation programs to
es for field teams to use in the moment
ensure franchisees are receiving best
of crisis situations.
in class service.
• Initiated a Boil Water Recovery proj-
ect to allow Franchisees to continue to We also made numerous improvements
safely operate in situations where they to our international food safety systems,
do not have potable water. including:

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RESPONSIBLE SOURCING COFFEE our supply chain. Once we have vetted our
Dunkin’ and Baskin-Robbins source a wide Coffee is at the heart of our business, coffee policy by third-party subject matter
variety of ingredients that contribute to and we recognize the need to do more in experts, we will continue our policy work
the products that our guests know and this space in order to continue to serve for cocoa. Lastly, we have started to map
love. Along with our franchisee-owned our guests the quality cup of coffee they our global coffee supply chain for comple-
procurement and distribution coopera- know and love. We continue to work with tion by the end of 2020. This work will help
our partners at the Rainforest Alliance to us better understand our coffee footprint,
tive, National DCP, LLC (NDCP) and our
increase the amount of certified coffee in and inform our strategy and decision-mak-
franchisee partners, we work to ensure
our portfolio, and since our last report we ing moving forward.
that all ingredients sourced for our two
have announced new partnerships with
brands are responsibly sourced.
World Coffee Research and the Sustain- Ingredients most sourced for the
able Coffee Challenge to further enhance Dunkin’ U.S. menu
our commitment to responsible sourcing.
In select international markets we also of- • Wheat • Eggs
fer 100% Fair Trade Certified™ espresso. • Coffee • Cocoa
• Sugar • Cream
In our last report we noted that we would
• Oils • Orange juice
be publishing responsible sourcing poli-
cies for coffee and cocoa, and in 2017, we
partnered with Sancroft, an expert interna-
tional consultancy, to help us develop our Ingredients most sourced for the
responsible sourcing policy for coffee. Our Baskin-Robbins U.S. menu
policy includes standards for transparency,
legal compliance, human rights and labor, • Bulk cream • Chocolate chips
community engagement, greenhouse gas • Liquid sugar • Pecans
emissions, conservation of natural bio- • Strawberries • Almonds
diversity and ecosystems, water and soil • Cocoa
management and chemical use. We have
circulated our policy to our roasters and
are in the process of finalizing an imple-
mentation plan for the remaining areas of

“We have a responsibility to protect the commodities we source, and


the farmers and producers whose livelihoods depend upon them. We
have to think beyond our cup of coffee…beyond our cup of ice cream.”
15 - Karen Raskopf, Chief Communications and Sustainability Officer
A NOTE FROM ABOUT DUNKIN’ PROGRESS SUSTAINABLE SUSTAINABLE SUSTAINABLE GOVERNANCE ABOUT
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STRATEGIC PARTNERSHIPS • Supporting the municipality in the devel- Currently in the U.S. and in select interna-
opment of public policies on watershed tional markets, the Dunkin’ brand offers
RAINFOREST ALLIANCE
management and advocating its imple- 100% Rainforest Alliance Certified™ espres-
Dunkin’ Brands has been working with
mentation through the reforestation of so, and 30% Rainforest Alliance Certified™
the Rainforest Alliance since 2010 and has
the high regions of the watershed. Dark Roast Coffee. In our last report we set
donated more than $400,000 to Rainfor-
est projects aimed at supporting sustain- • Training 300 families in three commu- a goal to source 100% Rainforest Alliance
able coffee and tea farms throughout the nities on best water quality manage- Certified™ Dark Roast by 2018 and we will
world. These farms and forests are man- ment and sanitation practices follow- continue to work with the Rainforest Alli-
aged according to rigorous environmental, ing the 201 SAS. ance to strengthen the supply chain to en-
social, and economic criteria designed to able us to increase our certified Dark Roast.
• Providing a presentation to more than
conserve wildlife; safeguard soils and wa-
100 producers about the benefits of
terways; protect workers, their local com-
central mills and the use of ecological
munities; and increase livelihoods.
depulpers to reduce the use and con-
Most recently, the Rainforest Alliance used tamination of water.
these funds for a project to protect water
sources of smallholder coffee producers
in Peru. The project work focuses on scal-
ing up the most effective and affordable
water treatment systems and provides a
greater focus on water quality and avail-
ability due to rising deforestation and re-
sulting water scarcity, in response to the
expansion of the coffee producing region
in Northern Peru. The project incorporates
at least three coffee providers who partic-
ipate in Dunkin’ Brands’ supply chain.

Over the past two years we have made tre-


mendous progress on this project, including:
• Creating a watershed working group
at municipality level.
• Training 400 families on efficient water
management practices aligned with the
2017 Sustainable Agriculture Standard
(SAS).
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WORLD COFFEE RESEARCH PALM OIL icy on direct purchases of palm oil. The
In September 2018, Dunkin’ and Nation- In 2014, we created guidelines for sourc- surveys are then reviewed and validated
al DCP (NDCP), announced a five-year ing our palm oil and in December 2017, by Rainforest Alliance for accuracy. In
agreement with World Coffee Research we issued revised Guidelines for Sourc- 2018, we explored the feasibility of sourc-
(WCR), a nonprofit collaborative research ing Palm Oil. These guidelines reinforce ing 100% sustainably certified palm oil in
and development program of the global our commitment to sourcing responsibly the U.S. for our indirect purchases and
coffee industry, to boost coffee sustain- produced palm oil with our stakehold- completed a training program to engage
ability. A percentage of sales from every ers, set forth clear requirements for our and educate our international licensees
pound of Original Blend coffee beans sold suppliers, and guide our palm oil strate- on the importance of responsible palm
to Dunkin’ franchisees for use in Dunkin’ gy moving forward. In 2017, we became oil sourcing and to empower them to de-
restaurants will now go to WCR in support members of the Roundtable on Sustain- velop their own guidelines. Our work with
of coffee sustainability efforts. We will be able Palm Oil (RSPO) with the goal of re- the Rainforest Alliance helps to inform the
working with WCR on metrics surrounding porting our sustainably certified palm oil status of our suppliers’ conformance with
greenhouse gas emissions, protection and volumes publicly as part of our policy re- our policy, identify compliance gaps, and
conservation of natural biodiversity and porting process. In 2017, we helped found identify an action plan for continuous im-
ecosystems, soil management, and chemi- the North American Sustainable Palm Oil provement.
cal use and plant health. We will be report- Network (NASPON) to bring together as-
ing annually on their efforts in these areas. sociations, consumer goods manufactur- In 2017, 82% of palm oil purchased
ers, retailers, and palm oil traders and pro- through the NDCP was certified/sustain-
SUSTAINABLE COFFEE CHALLENGE ducers committed to increasing the use ably sourced vs. 41% in 2016. 100% of
To help protect the coffee our customers of certified sustainable palm oil and certi- the inputs for direct palm oil purchased
love, Dunkin’ joined the Sustainable Cof- fied sustainable palm kernel oil (CSPO) in through NDCP were claimed as RSPO
fee Challenge (SCC), a collaborative effort North America, with the goal of continu- certified, but only 82% were validated as
among companies, governments, NGOs, ing progress toward 100% CSPO globally. certified. In addition, we’ve instructed our
research institutions, and others dedicat- As part of our policy, we have provided international licensees to identify a repre-
ed to making coffee the world’s first fully frequent updates on our progress toward sentative to oversee compliance with our
sustainable agricultural product. Togeth- achieving our target goals, most recently palm oil guidelines and policies, and de-
er with the SCC, Dunkin’ will work to find in December 2018. velop palm oil sourcing guidelines and an
solutions designed to ensure coffee sus- action plan for implementation in 2019.
tainability for Dunkin’ and for the indus- Since 2016, we have partnered with the
Rainforest Alliance to assess our progress In 2019, we will continue monitoring our
try. Our participation in the SCC builds on
towards meeting our palm oil commit- U.S. Suppliers to ensure they are in com-
our initiative with World Coffee Research
ments. We survey our suppliers annually pliance with our policies and licensee im-
mentioned above.
in order to verify compliance with our pol- plementation of action plans for palm oil

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sourcing through work with the Rainfor- of the eggs for the Dunkin’ U.S. menu from As of December 2018, 100% of the chick-
est Alliance. To strengthen our policy tar- cage-free sources by 2025. We currently en offered in Dunkin’ restaurants has been
gets we will be committing to 100% com- source 10% of the eggs for our U.S. break- raised antibiotic-free following the USDA
pliance for sustainable, traceable, and no fast sandwiches from cage-free sources. guidelines for No Antibiotics Ever. We
deforestation impact palm oil in donut fry We are still finalizing our plan for imple- continue to engage with NGOs and other
oil across our global operations by 2025. mentation across our full menu while con- organizations on antibiotics in other ani-
As such, we will be engaging with RSPO tinuing to find ways to increase our per- mal proteins as per our policy.
on their new supply chain certification centage annually.
model for franchise business and estab- We are committed to improving welfare
lishing an action plan for next steps by the In 2015, we also committed to source ges- conditions for broiler chickens and in
end of 2020. tation crate-free pork by the end of 2022. 2016, we set a goal to ensure that by 2024,
We issued our first progress report in De- we will only source humanely processed
ANIMAL WELFARE cember 2018. Since we announced our chickens certified by Global Animal Part-
At Dunkin’ Brands, we recognize that ani- commitment, we have been working with nership (GAP) to a minimum of GAP level
mal welfare is an important part of a safe our U.S. based suppliers to track industry 1 standards. We have ongoing discussions
and sustainable food supply chain. We efforts as well as progress within our own with our suppliers to ensure we will meet
care about the way animals are raised and supply chain. In January and September our target.
treated and in 2012, we created our Animal 2018, we surveyed our suppliers to better
understand their capabilities and prog- Finally, in 2017, we required all of our U.S.
Welfare Policy to share our animal welfare
ress towards meeting our established Baskin-Robbins’ milk suppliers to partic-
commitments with our stakeholders, set
target. Though our suppliers have con- ipate in Farmers Assuring Responsible
forth clear expectations for our suppliers
firmed their ability to meet our commit- Management (F.A.R.M). F.A.R.M. is a na-
and inform our decision-making regarding
ment, our supply has not been segregat- tionwide program that reflects the com-
animal products in our U.S. supply chain.
ed yet. Therefore we are unable to provide mitment of U.S. dairy farmers to provid-
We recently updated our policy in July
a percentage at this time. In 2019, we will ing a high level of animal care and quality
2017 to reflect our new commitments. In
continue ongoing conversations with our assurance. Baskin-Robbins was one of the
addition, we are actively engaged with
suppliers toward our 2022 goal, develop first ice cream brands to set goals around
NGOs such as the Humane Society of the
a strategy and implementation plan and GHG emissions, waste reduction, sustain-
United States (HSUS) and Compassion in
continue working with the National Pork able packaging and responsible sourcing.
World Farming (CIWF) to better under-
Board to understand industry capabilities In addition, our farmers pledge not to use
stand expectations within our industry.
and trends. Our next progress report will artificial growth hormones in our cream
We continue to work with our suppliers to
be published by the end of 2020. and milk.
evaluate the industry’s capacity to meet
our commitments and targets. In 2015, we
announced a commitment to source 100%
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SUSTAINABLE RESTAURANTS
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RESPECTFUL GUEST EXPERIENCE best practices and guidelines to our Inter- • Conducting frequent security audits of
At Dunkin’ Brands we want to pro- national licensees and franchisees. We rec- our stores, e-commerce applications
vide guests with a welcoming environ- ognize that all companies are vulnerable and corporate systems to ensure safe-
ment whenever they visit any Dunkin’ or to data breaches and so we are constantly guards are operating effectively.
Baskin-Robbins location. We work with evaluating and improving our systems in • Introduced a new international mobile
our franchisees and licensees to ensure order to stay ahead of any potential risks app policy for franchisees, licensees,
employees and crewmembers are trained or threats. joint-ventures, and their third-party
and sensitive to a wide variety of custom- vendors to help reduce risk as they
er needs. Throughout 2017 and 2018 we continued venture into digital platforms.
to implement new security measures to
Along with our franchisees, we strive improve the security posture of our guests,
to ensure that guests at any Dunkin’ or franchisees and employees, including, but
Baskin-Robbins have a restaurant experi- not limited to:
ence that exceeds their expectations. To let • Successfully deploying several securi-
us know about their experiences custom- ty enhancements to our Dunkin’ and
ers can contact our Guest Support team, Baskin-Robbins Store Network infra-
which is available via phone from 7:00am structure and Point-Of Sale systems in
to 7:00pm EST Monday through Friday. the U.S. to improve the security pos-
Additionally, the team monitors emails and ture of our restaurants.
social media for all guest inquiries 7 days • Successfully implementing several
a week, 365 days a year. We welcome all security controls to our Dunkin’ and
feedback as it helps us improve our brands Baskin-Robbins Mobile Applications
and support our franchisees. and websites in the U.S.

INFORMATION SECURITY • Successfully deploying payment termi-


We understand the importance of protect- nals in all U.S. stores so that stores are
ing our guests’ personal data. We have a now able to accept all forms of con-
dedicated team tasked with preserving in- tactless payment as well as secure the
formation security across all our systems. transactions.
This team is also responsible for imple- • Continuing to strengthen our process-
menting new security controls in our cor- es to improve security across all sys-
porate platforms, U.S. restaurants, web- tems in our international markets as
sites, and mobile applications. In addition, well as provide security guidance and
this team provides information security best practices to licensees.

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SUSTAINABLE PACKAGING WHAT WE SOURCE


At Dunkin’ Brands we are continuous- Dunkin’ and Baskin-Robbins source a
ly evaluating our packaging, looking for wide variety of materials that contribute
Reuse, Reuse, Reuse
ways to improve it and better serve the to our packaging, and we work with our
Since 2013, we have distributed over
interests of our planet, our guests and our franchisee-owned procurement and dis-
business. We proactively work with our tribution cooperative, National DCP, LLC
6 million reusable mugs to Dunkin’
suppliers to identify opportunities to in- (NDCP) to ensure our packaging materi- guests. Over the past two years, we
crease the sustainability of our packaging. als are responsibly sourced. served nearly 31.6 million beverages to
This includes decreasing the amount of our guests in reusable mugs.
packaging in our system, and increasing
options that are recyclable, compostable, Materials most sourced for
or biodegradable. Currently, 30% of our Dunkin’ Packaging in the U.S.
packaging is made with recycled content;
35% is compostable; and 30% is biode- • Paper
gradable. In the US, 86% of our packag- • Plastic resin
ing SKUs are either made from renewable • Paperboard
resources, recyclable and/or made from • Recycled paper
certified materials. • Polypropylene
• Polystyrene
• PET plastic

Materials most sourced for


Baskin-Robbins Packaging in the U.S.

• Plastic resin
• Polypropylene
• Paper
• Paperboard
• Recycled Paper
• PET plastic
• Polystyrene

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DUNKIN’ DOUBLE-WALLED PAPER


CUP REPLACES FOAM
In early 2018, as part of our commitment
to serve both the planet and people re-
sponsibly, we announced plans to elim-
inate all polystyrene foam cups in our
global supply chain with a targeted com-
pletion date of 2020.

In Dunkin’ U.S. restaurants, we will replace


the foam cup with a new double-walled
paper cup. The double-walled paper cup
is made with paperboard certified to the
Sustainable Forestry Initiative Standard
and will feature the current re-closable lid
that our customers know and love. This
new cup will come in four sizes, and will
be used for all of our hot beverages. With
heat retention properties that are equal
to our foam cup, the new double-walled
paper cup will keep beverages hot while
keeping hands cool, eliminating the need
for a sleeve.

We began rolling out the new cup in spring


“Transitioning from our foam cup to
2018 and are on track to meet our commit- our new double-walled paper cup is a
ment. We are projected to have over 70% significant milestone for Dunkin’. As
of our U.S. system converted to the new
a leading retailer we have a responsi-
cup by the end of 2019. The majority of
Dunkin’s international markets are current- bility to continue to increase the sus-
ly using paper cups, and we will work with tainability of our packaging while still
our franchisees/licensees to eliminate any meeting the needs of our guests.”
remaining foam cups by our 2020 goal.
Our elimination of foam is expected to re- - Scott Murphy, Chief Operating Officer,
move approximately 1 billion foam cups Dunkin’ U.S.
annually from the waste stream.

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DOUBLE-WALLED PAPER CUP CONVERSION MAP

Converted

By Q4 2019

By Q1 2020
*Conversion dates are subject to supplier production
capacity meeting rollout timing. No Dunkin’ presence
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INCREASING THE RECYCLABILITY OF Our packaging team will continue to eval- cled and certified content in our packaging
OUR LID uate and test all available alternatives un- wherever possible - as of 2018 we use only
As part of our efforts to offer more sustain- til we believe we have found the optimal certified paperboard. We are dedicated to
able packaging to our guests, we recent- solution based on performance, quality, looking for areas to increase the amount
ly conducted a successful test for a new commercial viability, environmental im- of paper-based packaging certified by the
hot coffee cup lid that is fully recyclable. pacts and cost. As we convert our hot Forest Stewardship Council (FSC) across
The new lid is made of #5 polypropylene cups from foam to paper, we are working our system.
and can be recycled in cities and towns with leading cup manufacturers on ways
that offer #5 recycling. We have started to improve the environmental attributes RECYCLING AND WASTE
to transition our system and are projected of our paper cups. We are exploring ways As a 100% franchise system, we do not
to have 100% of our system converted by to improve the cup lining to increase re- mandate recycling in our restaurants, with
the middle of 2020. This new lid has the cyclability, add recycled material to the the exception of locations where compost-
same features our guests love, and pairs paperboard, and any other new materials ing or recycling regulations exist. Over 80%
nicely with our new double-walled paper that might be in development. of our guests consume what they purchase
cup. This transition, along with our move to outside of our restaurants; however, we
the double-walled paper cup, will remove Not only are we working with our suppli- are committed to providing our franchi-
19 million pounds of polystyrene from the ers, we are working with domestic and in- sees with the resources for environmental
ternational municipalities to monitor the stewardship. We have made composting
waste stream annually.
global recycling system for infrastructure guidelines and a recycling toolkit available
changes. We continue to work with orga- to our franchisees who wish to compost
EFFORTS TO REDUCE PLASTIC
nizations like the Foodservice Packaging coffee grounds and other organic waste
At Dunkin’ Brands we have a cross-func-
Institute to better understand what prod- and recycling packaging from their restau-
tional packaging team that works to re-
ucts are acceptable at each given Mate- rants. We continue to work together with
duce the impact of our packaging. Not
rials Recovery Facility (MRF) and make our franchisees to find ways to improve the
only do they explore innovative sustain-
well-informed packaging decisions. sustainability of our restaurants.
able packaging solutions, but they are
also tasked with reducing the amount of
material in our packaging.
PULP AND PAPER
In 2016, we published our Sustainable
For plastic, increasing the recyclability and Pulp & Paper Policy. Since 2016, we have
reducing our consumption is a top priority. communicated this policy to all NDCP
We remain committed to finding a long- packaging suppliers and approved dis-
term sustainable alternative to our sin- tributors. Our commitments to sourcing
gle-use plastic packaging, including straws sustainable pulp and paper include trace-
that meets our guests’ expectations and ability, protecting High Conservation Val-
reduces environmental impacts. ue Forests, human rights, certification and
ncreasing recycled content. We are com-
mitted to increasing the amount of recy-
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SUSTAINABLE BUILDING fully-integrated digital kiosks, new crew


DUNKIN’ STORE OF THE FUTURE attire designed by Life is Good®, and a
tap system serving cold beverages such Why DD Green Achievement?
PREVIEW
In January 2018, we opened our first Next
as coffees, iced teas, cold brew coffee Meet Lou.
and nitrogen infused cold brew coffee.
Generation concept store in Quincy, MA
Our new Next Generation stores are de- Lou Cabral has been a Dunkin’ and
which features a new modern design
signed to meet DD Green Achievement Baskin-Robbins franchisee for the past
and innovative technologies throughout.
specifications and at least 25% more en- eighteen years and owns five DD Green
Modern design elements include the first
ergy efficient compared to our previous
drive-thru exclusively for mobile ordering, Achievement restaurants in the Greater
Fresh Brew design.
Richmond, VA area.

“After I opened my first DD Green


DD Green Achievement Achievement restaurant and realized a
restaurant in Richmond, VA 25% reduction in energy usage, I direct-
ed my architect to build only DD Green
Achievement restaurants from now on;
it just makes sense.”

Lou is passionate about DD Green


Achievement and is a pioneer for in-
creasing the use of natural light in his
restaurants. Stay tuned for more on Lou
as he works to open two new DD Green
Achievement restaurants in the summer
of 2019.

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DD GREEN ACHIEVEMENT™ In 2017, we released DD Green Achieve- nificant sample of DD Green Achievement
Since the launch of DD Green Achievement™, ment 2.0. which made the program eas- restaurants in 2018 indicate that DD Green
over 340 Dunkin’ U.S. restaurants have met ier for our teams and franchisees to un- Achievement restaurants, on average, are
the program’s standards. DD Green Achieve- derstand and manage. Our teams are performing better than designed. DD Green
ment is our program designed to help committed to working with our franchi- Achievement restaurants reduce energy
Dunkin’ franchisees build more sustainable sees to increase the amount of DD Green use by approximately 31% when compared
and energy-efficient restaurants in the U.S. Achievement restaurants in our system. to conventional Dunkin’ locations.
As such, we have set a goal to reduce en-
DD Green Achievement restaurants are ergy consumption in our U.S. Dunkin’ lo- In 2018 we launched a new store proto-
built with sustainable and efficient ele- cations by 20% by 2025 through our DD type incorporating all elements of DD
ments including LED lighting, high-effi- Green Achievement Program. Green Achievement. Our Next Genera-
ciency mechanical equipment, low-flow tion concept store is now being utilized
faucets, and more. In our previous report We collaborated with an external consul- for newly initiated Dunkin’ U.S. restau-
we set a goal to open 500 DD Green tancy to determine that our DD Green rant projects. This new design allows new
Achievement restaurants in the U.S. by Achievement restaurants are designed to Dunkin’ restaurants in the U.S. to operate
the end of 2020, and we are on target to save between 15-20% of energy compared more efficiently compared to our previous
meet our goal. to a conventional Dunkin’ restaurant. Addi- store design.
tionally, data submitted by a statistically sig-

Knoxville, TN

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SUSTAINABLE COMMUNITIES
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ENERGY & CLIMATE further reduce our total energy use.


CORPORATE FACILITIES In 2017 and 2018, at our learning facili- Dedication to Energy
We take pride in our corporate headquar-
ters and learning facility, as these creative
ty, Dunkin’ Brands University (DBU), we Efficiency
upgraded the water heaters, conducted
and interactive spaces allow our brands to building management system (BMS) up-
thrive. Since our last CSR report, we have
Our facilities team is dedicated to in-
grades, and replaced control boards on
continued to focus on equipment updates creasing our energy efficiency at Brand
the rooftops. At DBU we saw a reduction
and regular preventative maintenance in in electricity by 10% and a 29% increase in Central and Dunkin’ Brands University.
order to reduce our electricity and heat- heating from 2013 to 2018. In early 2018, Our Energy Star score went from 34 in
ing usage across both facilities. we closed our training facility in Burbank, 2014 to 94 in 2018.
CA and combined it with DBU to offer a
In 2017 and 2018, our facilities team com- more comprehensive training program.
pleted our transition to 100% LED light- Accordingly, our facilities team performed
bulbs at our global corporate headquar- increased amounts of construction on the
ters, Brand Central. In addition, we installed
solar-powered faucets, highly efficient sup-
building due to the expansion of our train- BOMA Boston TOBY Awards
ing programs with the closing of Burbank,
plemental heating/cooling for our retail lab resulting in increased heating use from
Thanks to our amazing partners at Jones
space, rooftop control boards, dock strip 2013 levels. In 2019 and 2020, we plan on Lang LaSalle (JLL), our building man-
curtains and hood controls for our kitch- replacing our lighting controls, upgrading agement company, the Building Own-
ens. These projects, among others, directly all thermostats, and conducting a full LED ers and Managers Association (BOMA)
contributed to our energy savings for 2017 retrofit in order to reduce our energy use. named Dunkin’ Brands Group, Inc. the
and 2018. We saw a 36% reduction in elec- We will also continue to perform routine Outstanding Building of the Year.
tricity at Brand Central from 2013 to 2018. checks on our facility throughout 2019
Our natural gas usage increased by 6% be- and 2020 to ensure our BMS system is
tween 2013 and 2018 due to an increased operating efficiently.
use in natural gas over electric. In 2019 we
will continue to shift our heating to greener Lastly, we’ve placed a greater emphasis
natural gas. on recycling in our corporate facilities and
have implemented new single-stream
Over the next two years, we plan to up- recycling messaging and procedures
grade our lighting to utilize dimming for our employees to follow. With these
capabilities and lockout controls; install changes we have set a goal to double our
more efficient equipment in our data single-stream recycling rates at our cor-
center; upgrade all thermostats; tint our porate headquarters by the end of 2020.
building windows; and replace our re-
volving door. These upgrades will help to
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CORPORATE FLEET by 39.5% since 2013, due to increased fuel helps reduce our environmental footprint,
At Dunkin’ Brands, we are committed to efficiency, as well as a reduction in drivers and informs our conservation projects and
reducing our carbon footprint across our and annual miles driven by each vehicle. energy reduction strategy. In 2018, we saw a
corporate facilities. We continue to eval- 64% reduction in GHG emissions compared
uate the efficiency of our corporate fleet ENERGY & GHG FOOTPRINT to a 2013 baseline. Our GHG emissions de-
and offer incentives to our field-based As part of our commitment to reduce our creased by 45% since 2016.
employees for selecting vehicle options environmental impact we continue to work
with a higher efficiency. Greenhouse gas with consultants to measure our energy and The table below summarizes our Scope
emissions (GHGs) from our corporate fleet GHG (Greenhouse Gas) emissions footprint 1 and 2 energy and GHG emissions data
continue to represent a material portion for Brand Central and Dunkin’ Brands Uni- from 2013 to 2018. At a glance, you can
of our total GHGs. Since 2013, fuel effi- versity. Our external consultants monitor see our absolute direct and indirect ener-
ciency has improved by 13.5%. GHG emis- our energy and Scope 1 and 2 GHG emis- gy consumption are trending downwards
sions from our corporate fleet decreased sions for our corporate holdings. Their work from 2013 to 2018.
DUNKIN’ BRANDS ENERGY & GHG EMISSIONS DATA 4

  2013 2014 2015 2016 2017 2018


Corporate Facilities 5

Direct Energy Use (GJ) 6 3,371 2,918 3,165 2,743 3,149 3,217
Indirect Energy Use (GJ) 7 20,785 18,613 15,914 15,455 14,266 12,791
Total Energy Use (GJ) 24,156 21,531 19,080 18,197 17,451 16,008
Normalized Energy Use (GJ/Sq Ft) .12 0.10 0.09 0.09 0.08 0.08
GHG Emissions (MT CO2e) 2,040 1,819 1,588 1,394 1,194 1.068
Corporate Fleet 8
Fuel Usage (Gallons) 339,856 310,946 287,835 276,586 230,925 207,047
Normalized Fuel Usage (Miles Per Gallon) 23.5 27.6 28.4 27.4 26.7 26.7
GHG Emissions (MT CO2e) 3,007 2,755 2,527 2,428 2.028 1,818
Company-Owned Restaurants 9

Direct Energy Use (GJ) 4,130 3,942 5,295 1,755 N/A N/A
Indirect Energy Use (GJ) 18,827 15,842 22,988 10,098 N/A N/A
Total Energy Use (GJ) 22,957 19,784 28,283 11,853 N/A N/A
Normalized Energy Use (GJ/Sq Ft) 0.46 0.44 0.42 N/A6 N/A N/A
GHG Emissions (MT CO2e) 3,003 2,446 3,262 1,399 N/A N/A

Total Emissions Scope 1 (MT CO2e) 3,384 3,101 2,955 2,656 2,187 1,980
Total Emissions Scope 2 (MT CO2e) 4,665 3,920 4,422 2,565 1,035 906
Total MT CO2e 8,049 7,020 7,377 5,221 3,222 2,886

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SCOPE 1 & 2 GHG FOOTPRINT CORPORATE FACILITIES - TOTAL ENERGY USE PER
The following graph shows the relative contribution of our cor- SQUARE FOOT
porate fleet, corporate facilities, and previously owned restau- Aside from the energy and fuel efficiency measures we have
rants to the GHG footprint by year. pursued, there are many additional factors that can affect the
energy and GHG profile of our corporate holdings from year-to-
year. These factors include acquisition/divestment of corporate
facilities and growth/reduction in vehicles in the corporate fleet.
To account for these factors, we normalized the energy use of
our corporate holdings by square footage for buildings and fuel
efficiency for the corporate fleet. Normalizing ensures that we
are comparing annual energy use on an “apples-to-apples” basis
so we can better identify factors driving certain trends in our
annual GHG profile. For corporate facilities, total energy use per
square foot has been declining steadily from 2013 to 2018. This
indicates that the portfolio of building energy savings measures
that we implemented are working to reduce energy used for
both electricity and heating.

CORPORATE FLEET - FUEL ECONOMY


For the corporate fleet, total fuel use has decreased steadily
from 2013 to 2018. In addition, miles traveled per gallon, or fuel
economy, has increased by 13.5% in that time frame, contribut-
ing to the reduction in fuel use.

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ENERGY REDUCTION COMMITMENTS You’ll see the chart below depicting a


In 2017, we set 2020 and 2025 energy 31% decrease in water usage at our cor-
reduction targets to continue to reduce porate headquarters and a 106% increase Baskin-Robbins Dipper-Well
our Scope 1 and Scope 2 GHG emissions at DBU since 2015. This increase is due
to the closing of our Burbank facility in Internationally, Baskin-Robbins is striv-
across our corporate holdings. We have
reduced our energy use per square foot 2018. With the close of Burbank, we have ing to provide franchisees and licensees
by 28.6% compared to a 2013 baseline completed increased amounts of con- with more efficient equipment that will
for our corporate facilities, and previous- struction at DBU and are performing reduce total water usage.
ly set a goal to reduce our energy use per double the trainings.
square foot by 28%, compared to a 2013
In 2018, we tested a more efficient,
baseline. We recognize that we must be Our conservation strategy moving for- on-demand ice cream scoop washer
diligent in monitoring our energy usage ward will be to improve the water effi- (dipper-well) in Dubai and Australia. Ini-
to continue to meet this goal. We will ciency of the equipment within our cor- tial findings demonstrated a significant
also explore additional energy efficiency porate facilities. In 2019, we have slated a reduction in the gallons of water used in
opportunities to meet our 30% reduction few new projects to further conserve wa- all test locations.
goal by the end of 2025. ter in both facilities. We will be upgrading
the solenoids and aerators at our corpo- With water being one of the world’s most
For our corporate fleet, we set a goal to rate facilities to further reduce sink flow precious commodities, Baskin-Robbins
increase fleet fuel efficiency by 9%, com- to .5gpm. In addition, we will be testing will be making the on-demand washer
pared to a 2013 baseline, by the end of lower flow toilets and urinals in hopes of available to our international partners in
2020; and 13% by the end of 2025. As further savings. Finally, we will be explor- the coming months, as well as continu-
of 2018 we achieved a 13.5% increase in ing electronic water metering to better ing to develop additional water saving
fuel economy. However, we must contin- understand and monitor our water flow equipment.
ue to encourage employees to select fuel throughout our facilities.
efficient vehicles and explore additional
WATER USAGE HISTORY
opportunities to improve fuel efficiency
across the fleet to maintain and improve
upon this performance.

WATER
In 2016, we set a goal to capture the
water footprint for our corporate facili-
ties and develop water saving strategies
for implementation by the end of 2020.
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STAKEHOLDER ENGAGEMENT support our franchisees and licensees event was an opportunity for our new
At Dunkin’ Brands, we have over 1,100 cor- where appropriate, and contains four CEO, Dave Hoffmann, and his leadership
porate employees and nearly 2,000 U.S. instructional videos with example crisis team to share their vision for transform-
and international franchisees and licens- scenarios. We see this as especially im- ing both Dunkin’ and Baskin-Robbins,
ees who operate two brands in close to portant given the age of 24/7 news and while energizing the system around the
70 countries. Given this complexity, con- social media we live in, where an inci- innovation already taking place across
tinuous stakeholder engagement is crit- dent that takes place at one restaurant both brands globally.
ical to our business and success. In our can attract attention faster than ever
2014 report, we provided a full description before. Attendees received exclusive ac-
of our engagement mechanisms by stake- cess to experience the Dunkin’ and
• 2018 GLOBAL CONVENTION: “NEXT Baskin-Robbins next generation store
holder and updated them in our 2016 re- IS NOW”
port. Since 2016, we have evaluated and designs, sample and interact with a
In 2018, we hosted 3,500 franchisees, wide array of product and equipment
updated our engagement mechanisms licensees, suppliers and corporate em-
to increase visibility and communication. innovation, and be the first to celebrate
ployees in Las Vegas for our first glob- the new simplified branding and logo
Key highlights include: al convention in nearly a decade. The for Dunkin’.
Franchisees/Licensees: We are now fo-
cused on less frequent, more relevant
communications to our franchisees. In
2017 and 2018 we developed new train-
ings and monthly newsletters and have
condensed our weekly email updates to
only include the most relevant content.
We have set a new goal to increase en-
gagement with our international licensees
on sustainability to better inform them
on the issues most material to our brand.
Some other examples of our engage-
ments are as follows:
• NEW CRISIS MANAGEMENT TRAINING
We’ve launched a new course on the
Dunkin’ Brands U focused on tradition-
al and social media crisis management.
The training discusses recommended
practices for navigating a crisis situa-
tion, how the Dunkin’ Brands team can

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Employees: We launched a new internal vice options to our guests, including up-
social network platform through Face- dating our FAQs, targeting our on hold
book Workplace. This has allowed us to messaging based on the prompt select- Three Square
increase communication internally, and ed, implementing a SMS Text option as
has created a space for employees to another channel to provide information, In an effort to minimize food waste
share relevant updates. In addition, our and offering an option to receive a call from our 2018 Convention we partnered
communications team has successfully back instead of waiting on hold. We also with local food bank, Three Square. We
increased our social media presence and evaluated the benefits of a new customer were able to donate 15,596 lbs. of food
engagement. relationship management (CRM) tool to from the convention resulting in 12,997
streamline guest contacts with the goal of meals that went to the food insecure
Guests: In 2017 and 2018, we made a num- reducing incoming contact volume. This population in Southern Nevada.
ber of enhancements to our customer new tool will be implemented in 2019.
service mechanisms to provide self-ser-

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OUR EMPLOYEES
As of December 31, 2018, Dunkin’ Brands employed 1,109 people, 1,068 of whom were based in the United States and 41 based in oth-
er countries. Of our U.S. employees, 476 worked in the field, and 633 worked at our corporate headquarters in Massachusetts.

“At Dunkin’ Brands, we’re on a journey together and each one of us is an important piece of
the Dunkin’ Brands legacy. Our energy is contagious and our focus is on what lies ahead.”
- Fred Schlecht, Vice President, Talent Management and Learning

2018 DUNKIN’ BRANDS WORKFORCE MANAGERS DIRECTORS

1 109 EMPLOYEES
, TOTAL FEMALE:
52%
MALE:
48% MALE:
54%
FEMALE:
46% MALE:
64%
FEMALE:
36%
AGE: 50+

OFFICERS
9.8%
FEMALE:
PEOPLE OF COLOR AT DIRECTOR LEVEL OR HIGHER 26%
MALE:
74%

33.3%
LEADERSHIP BOARD OF
FEMALES AT DIRECTOR LEVEL OR HIGHER TEAM DIRECTORS
AGE: 30-49

FEMALE: FEMALE:
13.2% MALE:
22%
MALE:
20%

78% 80%
TOTAL NUMBER OF PEOPLE OF COLOR
AGE: UNDER 30

*All numbers are as of December 31, 2018. To review the composition of Dunkin’ Brands’ governance bodies and a full breakdown of employees per employee cate-
gory according to gender, age group, minority group membership and other indicators of diversity, please view the report GRI Index here.
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DIVERSITY & INCLUSION


At Dunkin’ Brands, we believe having an EMPLOYEE RESOURCE GROUPS Dunkin’ Brands Earns
inclusive work environment with a di- Since 2016, we have increased our fo- 100% In 2019 Corporate
verse employee, franchisee, and supplier cus on our Employee Resource Groups Equality Index
base is crucial to our success and a key (ERGs) : INspire, our Lesbian, Gay, Bisexu-
part of our culture. We continue to find al, Transgender, Queer (LGBTQ) and Allies We recently announced that we received
new ways to improve our diversity and group; wIN, our Women’s Integrated Net- a perfect score of 100 on the 2019 Cor-
inclusion strategy that is focused on cre- work; EMBRACE, our multicultural group; porate Equality Index (CEI), the nation’s
ating an inclusive workplace for our em- and our Veterans ERG. Over the past two premier benchmarking survey and re-
ployees, building a stronger and more years we have increased the number of
port on corporate policies and practices
diverse workforce through inclusion, and members in each ERG. We are proud of
related to LGBTQ workplace equality.
strengthening our position in the market- the work these groups have done over
place with a diverse franchisee base and the past two years. They have created
culturally relevant marketing programs. more robust content and programming
for our employees and this has led to in-
creased participation in ERG events. For
instance in 2018, to celebrate Hispanic
Heritage Month, INspire, wIN, and EM-
BRACE sponsored an event featuring Raf-
fi Freedman-Gurspan, Director of External
Relations at the National Center for Trans-
gender Equality (NCTE).

We Value Feedback
At the end of 2018, we conducted an
Employee Engagement Pulse Survey
where we received a response rate of
87%. This helps our organization un-
derstand what we’re doing well and
how we can improve.
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EQUAL PAY fair pay for many years, even before Mas- levels of skill, experience, and responsibility
As shown above, women make up over sachusetts enacted updated Pay Equity are compensated fairly and consistently.
50% of our workforce and we are com- standards in 2018. We continue to conduct
mitted to paying equally for comparable annual compensation audits of our pay We recently updated our practices, includ-
work. We’ve been committed to equal and practices to ensure employees with similar ing a third-party review which supported
our internal findings. We recognize the
need for continuous evaluation and im-
provement upon our practices, and contin-
ue to review all internal role changes, pro-
motions, and merit allocations throughout
the year to identify any potential discrep-
ancies and make adjustments, if needed.

Externally, we have been involved with


several initiatives to identify further areas
for progress and improvement. We recent-
ly participated in the McKinsey Women
in the Workforce Study, which draws on
data from 279 companies to find trends
and highlight areas for improvement in
the advancement of women in the work-
place. Previously, we participated in the
White House Equal Pay Pledge in 2016,
and joined the Boston Women’s Work-
force Council’s 100% Talent Compact.

SUPPLIER DIVERSITY
At Dunkin’ Brands we remain committed to
increasing the diversity of our supplier-base
and our system spend with diverse suppliers
and broadening our partnerships with key
affiliations. Since our last report, we have at-
tended several supplier diversity events, in-
cluding the Federal Reserve Bank of Boston
Supplier Diversity Conference. Each year this
conference has provided us with insightful
information when considering new suppliers.
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WELLNESS AT DUNKIN’ BRANDS In addition to our competitive and com-


At Dunkin’ Brands, we are committed to prehensive benefits program, our well-
offering our employees a wide range of ness programming also focuses on “the Did you know?
benefit options. Our comprehensive ben- Whole U”, to support all aspects of our
In 2018, Dunkin’ Brands won silver cer-
efits and wellness offering is available to employees’ wellbeing. On physical well-
tification for Best Wellness Employer
all U.S. corporate employees who work ness, our program includes biometric
screening and access to health-related
through Wellness Workdays™ in collab-
twenty-one or more hours per week.
coaching and information through our oration with experts from Harvard Med-
We understand the importance of offer- wellness program provider, a free on- ical School. This certification recognizes
ing our employees benefits for all aspects site fitness center staffed by a qualified the outstanding achievements of busi-
of their lives, and strive to make Dunkin’ fitness professional, regular workshops nesses and organizations committed to
Brands an employer of choice. Through on healthy eating and nutrition through creating best-in-class corporate well-
our benefits program we hope to provide our food service provider and monthly ness programs that promote a culture
our employees with the stability they need health-related activities and challenges. of wellbeing to engage employees. By
to succeed not only in their careers, but in On mental and emotional wellness, our participating in this certification, we help
their personal lives as well. We offer ex- policies provide employees with signif- advance the field of workplace wellness
tensive paid time-off programs including icant work schedule flexibility, including
and prevention by providing data and
but not limited to: holiday; personal; sick the previously mentioned paid time off
research about current practices and
leave; vacation; family leave; and volun- programs as well as access to coaching
and other resources for employees and
wellness outcomes. We are excited to
teer time. Dunkin’ Brands employees are
encouraged to use their volunteer time dependents with life challenges through highlight our successful program with
to support local communities and causes our Employee Assistance Program. this award, and the positive impact it
that are meaningful to them. In 2018, we has had on the lives of our employees.
To facilitate financial wellness, in addition
extended our paid leave under the Fam-
to our 401(k) plan and company match,
ily Medical Leave Act (FMLA) from four
we offer an Employee Stock Purchase
weeks to six, and with the birth of a child
Plan and educational opportunities to
the leave was extended to sixteen weeks
create greater financial awareness and
from twelve. We also introduced an adop-
understanding.
tion assistance program. Our program al-
lows for reimbursement of up to $15,000 We offer our international employees com-
for qualified adoption expenses and also parable benefits; however there are some
includes up to six weeks paid leave for differences by country due to local prac-
FMLA eligible employees. tices and applicable laws and regulations.

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TRAINING & PROFESSIONAL ment and learn skills that can help them sion initiatives. Most recently, in 2018 we
DEVELOPMENT grow in their career. This Day consists of launched a Defeating Unconscious Bias
Attracting and retaining the best talent in instructor-led and e-learning workshops. e-learning module on Training Day. This
the industry is critical to our future success. course examines biases that we all have
We continue to enhance our training on and explores solutions on how to manage
In support of this, we recognize that we
data privacy and information security to the impact of these biases. This training
need the best tools to proactively source,
ensure our employees understand the im- was mandatory for all employees, and sup-
identify, and develop candidates. With that
portance of protecting all data relevant to plements additional training for Directors
in mind, in 2018 we launched Jobvite, a re-
our business. To that end, bi-annually we and Vice Presidents that was introduced
cruitment software and applicant tracking
conduct email phishing and information the previous year. Understanding uncon-
system. Jobvite addresses every stage of
systems penetration tests to improve our scious bias will help us make better busi-
the recruiting process and allows for better
overall security posture. ness decisions and increase our diversity
candidate relationship management.
awareness.
Over the past two years, we have taken
Additionally, we strive to provide our em-
steps to improve our diversity and inclu-
ployees with the tools they need to suc-
ceed and advance their
careers. All Dunkin’ Brands
employees are given the
opportunity to take a DISC
evaluation which helps them
assess their work style and
better understand the di-
verse work styles of others.
Our Talent Development
team also leads a monthly,
week-long new employee
orientation. We also offer
ongoing training via our on-
line learning management
system, The U, which can be
accessed globally.

Annually, we hold a Training


Day to give our employees
an opportunity to focus on
their professional develop-
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OUR FRANCHISEES & LICENSEES and develop best practices on people


Our franchisees, licensees and their em- management from industry experts.
ployees are a large part of our brands, Franchisees Give Back
despite not being employed by us. We of- In addition, at our 2018 Global Conven-
Our franchisees recognize the impor-
fer our U.S. franchisees a comprehensive tion we held several franchisee best prac-
tice panels. These panels were part of tance of giving back to their local com-
training program at our Dunkin’ Brands
our discussion sessions, which were thir- munities and they continue to play a
University location in Braintree, MA and
ty-minute question and answer periods vital role in strengthening their neigh-
online through The U. In 2017, we held
on various topics. These topics included borhoods across the world. In 2017 and
our second People First Summit for our
Dunkin’ franchisees. This Summit includ- retaining employees and leveraging on- 2018 in addition to the support they
ed franchisees, members of their teams, line hiring tools. provide to the Joy in Childhood Foun-
vendors and Dunkin’ Brands leaders. This dation, our U.S. franchisees donated
event provided our franchisees and team nearly $9.2 million to local charitable
members with an opportunity to learn causes and organizations.

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JOY IN CHILDHOOD FOUNDATION


As part of our commitment to the communities where our brands operate, the Joy in Childhood Foundation®, powered by Dunkin’
and Baskin-Robbins and the generosity of our franchisees, crew members, guests and brand employees, has granted $20 million since
2006 primarily to bring joy to kids battling hunger or illness.

CHILDREN’S HUNGER CHILDREN’S HEALTH service dogs who work full-time in children’s
When kids have proper nutrition, they When children face health issues, it robs hospitals. In-residence dogs provide comfort
can play more, learn better and have the them of the simple joys of childhood. The and joy to pediatric patients, but can also
energy to just be kids – that’s why the Joy in Childhood Foundation’s goal is to play a key role in their therapeutic care. With
Joy in Childhood Foundation is focused help kids feel like kids, even on their most the launch of “Dogs for Joy”, the Foundation
on ensuring kids have enough to eat at difficult days. adopted its own in-residence dog, Cooper
school and at home. The Foundation gives Dunkin’, who serves as Chief Joy Officer and
grants to hundreds of local hunger relief The Foundation provides grants to hundreds the “Dogs for Joy” program ambassador.
organizations across the country every year, of children’s hospitals and local organizations
and since 2007, has provided more than focused on providing joy to kids – from child For more information about the Joy in
$3.5 million to national partner Feeding life specialists to play, music and art therapy Childhood Foundation, its programs and
America®, to fund BackPack programs, programs, to birthday parties for hospitalized its 2017-2018 financials, please view the
Kids Cafes and other initiatives to combat kids and more. Foundation’s Impact Reports.
childhood hunger around the country.
At a national level, in 2017 and 2018 the Joy
Dunkin’ Brands franchisees, crew members in Childhood Foundation partnered with
and brand employees also volunteer in Starlight Children’s Foundation to provide
food banks across the country. In 2017, Starlight Gowns – high-quality, comfortable
we hosted our fourth Week of Joy during hospital gowns in fun, cheerful designs – to
which 2,220 volunteers packed more than pediatric patients and build Starlight Sites in
350,000 meals for children and families at hospitals around the country. Starlight Sites
85 Feeding America partner food banks are bright, kid-friendly spaces that bring joy to
and local hunger relief organizations children in hospitals, including teen lounges,
nationwide. therapy kitchens, healing gardens and more.

In 2018, the Foundation launched Dogs


for Joy, a national in-residence facility dog
program that aims to increase the number of
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TWO JOY-FILLED YEARS

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EMPLOYEE GIVING & VOLUNTEERISM


We encourage our employees to give as the official breakfast sponsor. In 2018, Bette Byrnes Award
back to the community, and as part of we had 29 participants on our team, up In 2018, Dunkin’ Brands and Team IN-
our benefits package we give them five from 23 in 2017. We also raised $25,621
spire accepted the Bette Byrnes Award
hours of paid volunteer time per quarter. in 2017 and 2018. Additionally, the Joy in
for our support of Youth on Fire. To-
Our employees volunteer with various or- Childhood Foundation provided Youth
gether with the AAC we will help
ganizations across the globe from Habitat on Fire-one of AAC’s core programs for
for Humanity to veterans organizations homeless youth-with grants for $15,000
change the lives of thousands of peo-
and homeless shelters. In 2017 and 2018, and $5,000 in 2017 and 2018 respectively. ple impacted by HIV/AIDS.
our INspire ERG employees participated
in the annual AIDS Walk & Run Boston, We continued to deepen our impact
a fundraiser for the non-profit AIDS Ac- through one of our most cherished pro-
tion Committee (AAC) of Massachusetts. grams, Coffee For Our Troops. In 2017 and
Team INspire was AIDS Walk & Run Bos- 2018 we donated 26,112 pounds of coffee
ton’s strongest emerging team. In 2018, to U.S. troops overseas, equaling more
Dunkin’ Brands received the Bette By- than $71,000 in total donations from em-
rnes Award for our support of the event ployees and the Brand.
and expanded our support for the Walk

Dunkin’ Brands CEO Dave Hoffmann


accepts Bette Byrnes Award

42
A NOTE FROM ABOUT DUNKIN’ PROGRESS SUSTAINABLE SUSTAINABLE SUSTAINABLE GOVERNANCE ABOUT
MATERIALITY
LEADERSHIP BRANDS & GOALS FOOD RESTAURANTS COMMUNITIES & ETHICS THIS REPORT

CHARITABLE PARTNERSHIPS with the Red Cross to raise money during


In addition to their support of the Joy the California wildfires.
in Childhood Foundation, Dunkin’ and All You Can Eat Ice Cream
Baskin-Robbins franchisees support many In 2017 and 2018, nearly 200 volunteers
from Dunkin’ Brands and our partners par- Nearly 200 volunteers from Dunkin’
non-profit organizations and community
ticipated in the annual Jimmy Fund Scoo- Brands & our partners scooped more
causes across the country. For example,
per Bowl® in Boston, MA, scooping ice than 40,000 scoops of Baskin-Rob-
our franchisees have partnered with the
cream over three days to help raise mon- bins ice cream for attendees over the
American Red Cross in support of numer-
ous disaster relief efforts. In 2017 and 2018, ey for cancer care and research at Dana course of the three day Scooper Bowl
Dunkin’ franchisees partnered with the Red Farber. Since 1983, the Scooper Bowl has event in 2018.
Cross to donate coffee and breakfast items raised $6.7 million. We are proud to con-
to area shelters and first responders affect- tinue to participate in this event annually.
ed by the hurricanes in Texas, Florida, North
In addition, our international licensees
Carolina and South Carolina and helped
support a number of charitable organiza-
raise money for the Red Cross in stores.
tions outside of the U.S.
Baskin-Robbins franchisees also worked

Coffee for Runs


Our local New York franchisees part-
nered with the Syracuse Chiefs Baseball
team to donate one pound of coffee
for every run scored during their 2017
season at home. This amounted to 273
pounds of coffee donated to the Food
Bank of Central New York.

43
A NOTE FROM ABOUT DUNKIN’ PROGRESS SUSTAINABLE SUSTAINABLE SUSTAINABLE GOVERNANCE ABOUT
MATERIALITY
LEADERSHIP BRANDS & GOALS FOOD RESTAURANTS COMMUNITIES & ETHICS THIS REPORT

GOVERNANCE & ETHICS


At Dunkin’ Brands, we consider strong corporate governance and ethical conduct as the foundation for corporate social responsibility
and key to business success.

CORPORATE GOVERNANCE er-based training on our Code of Business Business and Human Rights (UNGPs). In
Our Board of Directors sets high stan- Ethics and Conduct. This training must order to become or remain an approved
dards for our employees, officers and also be completed annually thereafter. At supplier in the Dunkin’ or Baskin-Robbins
directors. As of May 2019, the Board is Dunkin’ Brands we also maintain an eth- system, a supplier must acknowledge and
chaired by former Chief Executive Offi- ics hotline, which employees can access agree to the terms of our Code. The Code
cer of Dunkin’ Brands, Nigel Travis. The by phone or online to report concerns provides that corrective actions must be
board is comprised of ten members, in- anonymously. In addition, we require all taken in the event of a violation, and fail-
cluding two women and eight men. Eight employees to complete a register of inter- ure to do so results in removal of approval
of the Board’s ten members are indepen- est upon hire and annually thereafter. The status in our system. View our Code here.
dent. The Board of Directors assess the register of interest is designed to identify
independence of its non-management any real or potential conflicts of interest In addition to our Code, we have strict up-
members at least annually in accordance that may negatively impact our business. front vendor due diligence procedures in
with the listing standards of the NASDAQ place to ensure we are only selecting the
Global Select Market, the Sarbanes-Oxley At Dunkin’ Brands, we are committed to best vendors and suppliers that make
Act of 2002, the regulations of the Se- conducting business in an ethical, legal, sense for our business, and keeping our
curities and Exchange Commission and and socially responsible manner. We’ve guest’s safety, security and satisfaction a
Dunkin’ Brands’ Corporate Governance previously established a Supplier Code of top priority. These procedures help us to
Guidelines. Conduct (Code), most recently updated define issues of risk, and help to inform us
in 2017, which defines the minimum stan- on all potential suppliers before they be-
ETHICS AND COMPLIANCE dards we require any agent, contract, con- come approved suppliers in the Dunkin’ or
Our success is dependent upon how we sultant, supplier or vendor approved to do Baskin-Robbins system. Lastly, our Supply
conduct ourselves and do business with business with the Dunkin’ Brands system Chain team has been conducting the due
our franchisees, vendors, suppliers and to follow in the conduct of their business- diligence process to find third-party verifi-
other business partners. Our principles for es. Our suppliers may also be required to cation parties that will provide an indepen-
comply with additional separate policies dent verification of continued compliance
business conduct are outlined in our Code
developed to address specific product by approved suppliers with the Code.
of Business Ethics and Conduct.
risks applicable to their respective busi-
All global Dunkin’ Brands employees, in- ness. Our code is based on core Interna-
cluding temporary workers and interns, are tional Labor Organization (ILO) conven-
required to complete mandatory, comput- tions and the UN Guiding Principles on

44
A NOTE FROM ABOUT DUNKIN’ PROGRESS SUSTAINABLE SUSTAINABLE SUSTAINABLE GOVERNANCE ABOUT
MATERIALITY
LEADERSHIP BRANDS & GOALS FOOD RESTAURANTS COMMUNITIES & ETHICS THIS REPORT

PUBLIC POLICY
LOBBYING PAC & DIRECT POLITICAL TRADE ASSOCIATION MEMBERSHIPS
At Dunkin’ Brands we believe it is neces- CONTRIBUTIONS • Coffee Quality Institute
sary to participate in the legislative and We have a voluntary Political Action Com- • International Franchise Association
regulatory process around key issues that mittee, the Dunkin’ PAC, comprised of • National Coffee Association
affect our business. We have a dedicated contributions from both employees and • National Restaurant Association (in-
Government Affairs team that engages franchisees. Corporate funds are not con- cluding all state restaurant associations)
with federal, state and local policymakers tributed by the PAC, per federal law. We • National Retail Federation
to advocate on behalf of our franchisees disclose PAC expenditures to the Federal • New Jersey Retail Merchants Asso-
and our brands. The team is also engaged Election Commission (FEC) quarterly as ciation
in legislative and regulatory affairs in our required by law. PAC and Lobbying dis- • Specialty Coffee Association
international markets. Our advocacy ef- closures can be found here. Guidelines re- • Illinois Retail Merchants Association
forts are both direct and indirect, and in- garding political contributions and activi-
clude utilizing a Political Action Commit- ties are outlined in our Code of Business
tee (PAC) and memberships in national Ethics and Conduct.
and regional associations.

45
A NOTE FROM ABOUT DUNKIN’ PROGRESS SUSTAINABLE SUSTAINABLE SUSTAINABLE GOVERNANCE ABOUT
MATERIALITY
LEADERSHIP BRANDS & GOALS FOOD RESTAURANTS COMMUNITIES & ETHICS THIS REPORT

ABOUT THIS REPORT


REPORT PROFILE, SCOPE & BOUNDARY CONTENT & MATERIALITY addition, all members of Dunkin’ Brands’
This is Dunkin’ Brands’ fifth Sustainability To determine the content for this report, Leadership Team reviewed and approved
Report. Previous reports were published in we conducted a materiality assessment to the report. Dunkin’ Brands does not have
2010, 2012, 2014, and 2016 and are avail- identify the sustainability issues most ma- a policy regarding external assurance, and
able for download on the Responsibility terial to our business and our stakeholders. this report was not externally verified by an
section of Dunkin’ Brands’ website. You can read more about our materiality independent third party.
process on p. 5.
Dunkin’ Brands publishes Sustainability Re- We encourage your feedback on this re-
ports on a biannual basis. Data, case stud-
ASSURANCE port. Please contact us at CSR@dunkin-
ies, and information in this report pertain to
An internal review of all data and assertions brands.com, or Sustainability Department,
our fiscal years 2017 and 2018 (01.01.2017 –
contained in this report was conducted by Dunkin’ Brands, Inc., 130 Royall Street, Can-
12.31.2018). This report covers our U.S. cor-
Dunkin’ Brands internal subject matter ex- ton, MA 02021.
porate operations, corporate headquarters,
and corporate learning facility. Where we perts to ensure accuracy of the content. In
can, we share information and data from
our U.S. franchised restaurants, Central Man-
ufacturing Locations (CMLs) and National
DCP, LLC (NDCP). All references to currency
are in U.S. dollars, unless stated otherwise.

As an increasingly global company, we


share some information, where available,
on our international supply chain and oper-
ations. Due to our franchise business model
and differences in our U.S. and internation-
al tracking and reporting systems, some
data is unavailable for our international op-
erations. In cases where data is unavailable,
we have disclosed it in this report.

This report was produced in accordance


with the Global Reporting Initiative (GRI)
Standards. Please refer to the GRI Content
Index for a listing of all standard disclosures
covered in this report.
46
NOTES
1Our definition of optionality is providing a wide array of menu options to our guests, including better-for-you, gluten-free, non-dairy, vegan, plant-based and
healthier food and beverage choices.

2Our definition of optionality is providing a wide array of menu options to our guests, including better-for-you, gluten-free, non-dairy, vegan, plant-based and
healthier food and beverage choices.

3 Ourdefinition of a vegan menu item is a food or beverage with no animal sources: no meat, fish, shellfish, milk, egg or honey products, and no enzymes and
rennet from animal sources. All of our menu items (vegan and non-vegan) are prepared in the same area. We cannot guarantee that there will be no cross-contact
between products or ingredients.
4 Energy use is measured by collecting utility bills from corporate buildings and fuel records from the corporate fleet. Building energy use was recorded in EPA Port-
folio Manager, and the GHG footprint from buildings is calculated using this tool (more information available here: https://www.energystar.gov/buildings/facility-own-
ers-and-managers/existing-buildings/use-portfolio-manager) Utility bills were not available for all company-owned restaurants – for example, some of them are in
larger facilities such as airports where restaurant-based metering is not available. Where data was not available, we estimated energy use by applying the weighted
average monthly energy use per square foot from other facilities in similar geographic regions to the facility with missing data. Dunkin’ Brands is 100% franchised,
with no company-owned restaurants, as of October 2016.

We calculated the GHG footprint of the corporate fleet using the EPA Center for Corporate Climate Leadership emissions calculator (more information is available
here: https://www.epa.gov/climateleadership/center-corporate-climate-leadership-simplified-ghg-emissions-calculator).

5Corporate facilities include our Brand Central headquarters, Dunkin’ Brands University, our Burbank, California training facility (which ceased operations in May
2018), and our ice cream manufacturing plant in Canada (which ceased operations in October 2012).
6 Direct energy use represents consumption of natural gas.
7 Indirect energy use represents consumption of electricity.
8 Our corporate fleet is comprised of standard and hybrid vehicles used by corporate employees for business travel.
9 Dunkin’ Brands has operated only a small number of Dunkin’ company-owned restaurants in past years: a total of 12 in 2010 (8 were in operation for the full year); 17
in 2011 (12 were in operation for the full year); 28 in 2012 (21 were in operation for the full year); 31 in 2013 (25 were in operation for the full year); 46 in 2014 (18 were
in operation for the full year); 43 in 2015 (31 were in operation for the full year); and 30 in 2016 (none were in operation for the full year). As of 2017, Dunkin’ Brands
no longer owned corporate restaurants.
10 Total annual energy use per square foot was only calculated for restaurants that were owned and operated for the full year. As of October 2016, Dunkin’ Brands

sold all company-owned restaurants; as such 2016 normalized figures are not available.

47
Dunkin’ Brands
130 Royall Street
Canton, MA 02021

For general questions or to provide feedback to this report, please contact us at CSR@dunkinbrands.com.

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