ENVIRONMENTAL FOOTPRINT

Greenhouse Gas Emissions

As the world transitions to a zero-carbon economy, Domino’s is committed to achieving net zero emissions across its value chain by 2050. This commitment is consistent with one of our core values: “Do the Right Thing.” We believe that protecting the planet for future generations is the right thing to do for our customers, our team members and our business.

Work is underway to create a more detailed roadmap for how we can reach net zero emissions and will include rigorous measurement, transparent reporting and emissions reductions to achieve the following science-based targets:

We will reduce our scope 1 & 2 emissions 67% by 2035.
We will reduce our scope 3 emissions 40% by 2035.

Within the next year, we will submit these targets for validation by the Science Based Targets initiative (SBTi). (Domino’s ambition for scope 1 and scope 2 Science-Based Targets are reduction targets that limit global temperature rise by 1.5°C.) The scope 3 ambition is in line with limiting global temperature rise to well-below 2˚C. We will also develop and publish an action plan for achieving these targets. Our performance against these 2035 targets will indicate progress toward our longer-term (2050) net zero goal.

In 2020, working with global sustainability experts, Domino’s completed a corporate carbon footprint aligned with the Greenhouse Gas Protocol:

  • Domino’s 2019 greenhouse gas emissions were 3.56 million metric tons of CO2e: scope 1 0.14 MMT, scope 2 0.05 MMT, scope 3 3.37 MMT.
  • Domino’s 2019 greenhouse gas emissions were 3.56 million metric tons of CO2e: scope 1 0.14 MMT, scope 2 0.05 MMT, scope 3 3.37 MMT.
  • Pie Chart
    51% Purchased Goods (commodity and noncommodity ingredients)
    22% Utilities (purchased fuel and energy)
    18% Logistics (inbound transportation, outbound transportation, and delivery)

More than 95% of our total carbon emissions fall within scope 3 – these are emissions that are a result of activities from assets not owned or controlled by Domino’s. This includes the emissions impacts from ingredients we purchase from suppliers, utilities and transportation, including delivery to our customers. This also includes emissions from our U.S. franchisees. Engaging with our franchises and suppliers will be crucial to reducing our scope 3 emissions.

The new greenhouse gas footprint provides us with the baseline against which we will track future performance. We recognize the path to reducing our emissions may not be easy. By maximizing efficiency across our own operations, tapping into the spirit of innovation and technology leadership of our brand, and collaborating with our stakeholders, we are confident that we will get there.

Ovens

One of the more noteworthy items that came to light during our baseline analysis is the large role that our natural gas ovens play in our carbon footprint. Ovens are a pivotal piece of equipment for all our stores. They are at the heart of pizza making, and over the years new ovens have become more efficient. As a brand known for innovation and technology, we look forward to working with our suppliers on future ovens that have a lower carbon footprint than the ovens of today.

Water

Water is a key resource that is facing increased variability and availability due to climate change impacts. Domino’s initial environmental footprint included water usage so that we could gain a better understanding of its impact and opportunities.

Domino’s 2019 water footprint was 85.6 million m3 of water. The three main categories of water usage for Domino’s included purchased goods (including the production of ingredients and packaging materials), which accounted for 91% of water usage. Next was utilities (purchased tap water, wastewater discharge and water consumption associated with purchased energy), which accounted for 4% of water usage. Finally, logistics (energy extraction and fuel production for transportation) resulted in 4% of our water usage. Ingredients – predominantly driven by irrigation of commodity crops and liquid products (including sauces and dressings) – accounted for approximately 88% of overall corporate water consumption.

A key learning that arose during the footprint measurement process was the data quality from corporate store and supply chain operations, as well as from suppliers, was not as detailed or robust as we would like. Improving the quality of this data will be important for aligning on specific goals and setting supplier and corporate expectations. Going forward we will look to implement systems and programs to track water usage more closely, as well as understand watershed implications from key suppliers with the greatest water impact.

Recycling and Waste

Domino’s generates various waste streams a part of our operation, ranging from cardboard and excess pizza dough generated in the manufacturing process at our supply chain centers, to ingredient packaging and unused food in our corporate-run stores, as well as office waste in our corporate headquarters.

Based on the data available to us from the supply chain centers, corporate stores and office locations we operated at the time, Domino’s generated approximately 15.8 thousand tons of waste, with roughly 37% diverted to recycling and the remainder sent to landfills in our 2019 benchmark analysis. Domino’s is looking at ways to increase our diversion rate in our supply chain facilities and we are working with our waste vendors across the company to improve data quality, as limited information is currently available on waste generation rates in certain markets for specific categories. Corporate stores often have recycling and waste practices that are determined by building owners, but plans will be created going forward to develop a better understanding of what improvements can be made at the store level as well. Best practices and learnings will be shared with franchisees with the intention of amplifying change.

Responsible Packaging

The vast majority of products that Domino’s sells leave the stores in corrugated boxes. In 2020, Domino’s increased the percent of recycled content in the boxes from 40% to 70% with 100% of our paper-based packaging sourced from fiber from responsibly managed forests and recycled sources. Our box suppliers maintain certified fiber sourcing and chain-ofcustody certifications using third-party audits, and our primary supplier uses controlled wood. Their policies do not allow the purchasing of fiber from illegal logging, the trade in illegal wood or forest products.

Our box suppliers do not purchase from operations that would have an adverse impact to regions of high conservation value. They have further policies and procedures in place to promote and utilize sustainable forestry and extensively participate in outreach and education with landowners on scientifically supported sustainability practices. They hold certifications with the Sustainable Forestry Initiative®, the Forest Stewardship Council®, Program for the Endorsement of Forest Certification®, Brazilian Forest Certification Program and the American Tree Farm System.

Pizza Box Recycling

As the largest pizza company in the world, Domino’s is leading the way in educating customers about the importance of pizza box recycling in the U.S.

According to the American Forest & Paper Association (AF&PA), corrugated cardboard can be recycled at least seven times, and grease and cheese do not impact recyclability. However, this information isn’t widely known and customers are often confused about what to do with leftover pizza boxes.

Domino’s is committed to increasing awareness of the recyclability of pizza boxes and provides tools and information for customers through the website recycling.dominos.com. At this site consumers can learn more about pizza box recycling in their local area, learn facts about how corrugated packaging can be recycled and then encourage their local recycling program to update its recycling guidelines regarding pizza boxes.

Domino’s is dedicated to continuing these efforts as a member of The Recycling Partnership, a nonprofit organization dedicated to the accessibility to and quality of recycling in the U.S. Domino’s hopes to divert pizza boxes from landfills into the recycling stream, to make sure the corrugated fibers reach their full recycled potential.