We strive to safeguard our planet, leaving as light a footprint as possible

Message from Michael Clark, Chief Supply Chain Officer

We collaborate with our suppliers and industry to ensure we are continually identifying better ways to conduct business in a more sustainable way.

We aspire to have every customer, every staff member, and every store support our efforts in reducing our environmental impact through our sustainability initiatives.

In 2013, we established a sustainability framework and strategy, underpinned by two distinct pillars – sustainable stores and sustainable supply chain – and communicated through ongoing internal and external stakeholder engagement. We have key areas of focus under each of these pillars which we continue to drive through ongoing projects and initiatives.

For example:

  • We have pioneered recycling in the quick service restaurant industry, offering away from home recycling opportunities for our customers at over 185 restaurants nationwide.
  • We have opened our first Leadership in Energy and Environmental Design (LEED) certified store, with another planned in 2014/15.

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Our goals:

  • Design and build all new company restaurants to be LEED certifiable from 2015
  • Work toward a global goal of reducing energy consumption in company-owned restaurants 15% by end-2015
  • Work toward a global goal of reducing water consumption in company-owned restaurants by 10% by end-2015
  • Continue to enhance our supplier environmental audits
  • Work to implement waste recovery projects that will reduce, recycle and reuse our waste in all company stores
  • Purchase paper-based packaging with fibre from responsibly managed forests and recycled sources

Sustainable Buildings

LEED Restaurants

In 2013, KFC Australia was the first quick service restaurant system to open a Leadership in Energy and Environmental Design (LEED) certified store at East Maitland in New South Wales.

Goal: Design and build all new company restaurants to be LEED certifiable from 2015.

The new restaurant features state of the art recycling systems, expected to divert up to 720 kilograms of waste from landfill each week. Everything from KFC’s canola cooking oil, cardboard, bottles and cans can be recycled, with food and general waste turned into compost.

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Overall energy use is expected to be reduced by at least 16%, through optimised footprint, the installation of LED lighting throughout the entire site, innovative day-light and movement sensors in strategic areas, as well as industry-leading kitchen ventilation technology.

Our LEED restaurants also aim to provide improved environments for our team members and customers through the use of low VOC paints and sealants and through the implementation of increased natural light sources in our designs.

A range of water-saving measures have also been implemented, such as the installation of water efficient landscaping, tankless water heaters and high efficiency water fixtures and fittings in bathrooms, which are expected to reduce water use by up to 35%.

A second LEED certified store is being built in Lidcombe, setting the standard for all new restaurants.

Energy efficiency

KFC Australia has been reducing energy consumption through a variety of programs at its company-owned stores, including:

Global firsts for KFC –

  • All front of house dining lights have been retrofitted with LED lighting – a global first for KFC
  • Modifying our extract hoods to reduce extract rates when not required, reducing air conditioning consumption
  • Replacing high wattage metal halide car park lights with significantly lower wattage induction lights. These lighting initiatives have significantly increased the fittings life span by 5 times, reducing cost of replacement.
  • Equipment efficiencies include drink fridges, holding cabinets and hotplates.
  • Currently trialing new efficient low oil volume fryers, adaptive refrigeration control and Building Management System to control energy consumption and carbon footprint.

Goal: Work toward a global goal to reduce energy consumption in company-owned restaurants 15% by end-2015.

We are educating our Restaurant General Managers (RGMs) about the importance of energy reduction, including introducing a new ‘powering up’ schedule which encourages RGMs to only switch on machinery when it is needed, rather than on arrival in the morning. To support our RGMs we have also provided them with an online portal of tools to track their 30 minute energy usage trends, giving them access to energy invoices and near-live interval data feeds to make adjustments. This has also been rolled out across the majority of franchisee stores

We are also exploring self-generation energy initiatives such as solar power, and using our cooking oil to generate power for our stores.

Water conservation

KFC Australia will continue to push for greater efficiencies in its new stores through a range of water-saving measures including the installation of water efficient landscaping, tankless water heaters and high efficiency water fixtures and fittings in bathrooms.

Goal: Work toward reducing water consumption in company-owned restaurants by 10% by end-2015

Carbon Footprint

Carbon reporting

KFC Australia is in its fourth year of National Greenhouse and Energy Reporting, providing information to the Australian Department of Environment Clean Energy Regulator on its carbon emissions across its 600 stores.

We have also contributed to the Carbon Disclosure Project (CDP) since 2011. Top companies around the world report greenhouse gas emissions data and climate change strategies to CDP with over 81% of the world’s FTSE Global 500 Equity Index companies submitting their CDP reports and strategies. We have also been working with Intelligent Pathways for four years to report on our greenhouse gas emissions and energy consumption, assisting with the collection, analysis and data management of our environmental data.

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Supplier Environmental Audit Program

In 2009, KFC Australia pioneered the Supplier Environmental Scorecard which is now being implemented by Yum! in other countries.

We continue to enhance this scorecard and implement it across our supply chain to gain greater insights into our end-to-end supplier environmental impacts and where we can collaborate to reduce waste, energy and water consumption to create a more sustainable supply chain.

Waste Recovery and Recycling

Closed Loop Recycling Program (CLRP)

KFC Australia is pioneering recycling as the first quick service restaurant system to participate in a nationwide recycling initiative, "Do the Right Thing, Use the Right Bin," a public-private partnership funded by the Australian Packaging Covenant.

Goal: Work to implement waste recovery projects that will reduce, recycle and reuse our waste in all company stores.
KFC Australia reduces waste through industry-leading recycling initiatives, and via our partners.

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To date, new recycling systems for public use have been installed at over 185 KFC restaurants across Australia, providing recycling opportunities for millions of customers per year. We will be continuing to grow our recycling program front-of-house for bottles, cans and Krusher cups this year.

KFC Australia also proudly recycles cardboard at 98% of our company-owned stores back of house and in the majority of franchisee stores.

In 2013, we diverted 798.8 tonnes of waste from landfill through our cardboard and commingle recycling program at our company-owned stores.

Recycling in our kitchens

We recycle our canola cooking oil in all stores, where service is available. We partner with an accredited third party supplier who picks up our cooking oil in-store and processes it at various plants to make products such as biodiesel and animal feed.

We are also investigating how we can repurpose broken, redundant equipment and fixtures through local metal recycling programs.

Industry ecology

We are currently undergoing a number of industry ecology projects. On World Environment Day, we announced that by end-2014 we would use our supply chain network to transfer approximately 60,000 old uniforms to Pacific NonWovens, a fibre technology company that would convert them to 25,000 m2 of Superfelt carpet underlay, to be sold commercially.

Our existing food delivery suppliers, Cut Fresh Salads and Unifresh, are collecting the old uniforms during routine deliveries and sending the 7,000 kilograms worth of materials to Pacific NonWovens from their distribution centres.

More information on this project can be found by reading the Partnerships with Suppliers section below.

Sustainable packaging

KFC Australia is committed to making sustainable packaging a priority. As a signatory to the Australian Packaging Covenant (APC), we constantly evaluate our packaging design, embedding the Sustainable Packaging Guidelines into all of our processes and new product development.

Goal: Purchase paper-based packaging with fibre from responsibly managed forests and recycled sources.

In 2014, Yum! (KFC Australia) was categorised by the APC as a High Performer for its commitment.

In support of this, Yum! globally has developed global Sustainable Sourcing and Waste Recovery Principles which we align to.

Partnerships with Suppliers

Partnerships with suppliers

KFC Australia partners with its suppliers to drive more sustainable processes and to minimise its impact on the environment.

Sustainability working group

This year, we implemented an industry sustainability working group across our supply chain to understand crossovers, opportunities and best practice initiatives.

Farm-to-Fork study

We are partnering with some of our large suppliers to undertake a Life Cycle Assessment project with an independent environmental consultant. In this Farm to Fork study, we will assess the environmental and social hotspots in our business and identify opportunities for improvement and partnership.

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Industrial Ecology Workshop

With our partner EDGE Environment, we will establish and run a Sydney Industrial Ecology Network. Made possible through a grant from the Environment Protection Authority, the network will bring businesses together to foster reuse of commercial and industrial waste. This program is part of the Waste Less, Recycle More initiative.

We will host this event to reduce waste and promote responsible resource management across our supply chain.

The workshop aims to identify and facilitate exchanges of resources by connecting people, developing business cases and assisting with regulatory requirements.

KFC Australia diverts 60,000 uniforms from landfill

On World Environment Day, we announced that by end-2014 we would use our supply chain network to transfer approximately 60,000 old uniforms to Pacific NonWovens, a fibre technology company that would convert them to 25,000 m2 of Superfelt carpet underlay, to be sold commercially.

Our existing food delivery suppliers, Cut Fresh Salads and Unifresh, are collecting the old uniforms during routine deliveries and sending the 7,000 kilograms worth of materials to Pacific NonWovens from their distribution centres.