SPUR CORP. LIMITED INTEGRATED REPORT 2014

Strategy, risks and key performance indicators (“KPIs”)

Environmental sustainability

Spur group’s vision to make a positive and lasting difference to the people, communities and environment around us is evidenced in our commitment to sustainable environmental practices.

The group has an environmental sustainability committee, comprising executive and operational members, to oversee the drafting and implementation of policies, as well as the tracking, measurement and verification of all results. The board is ultimately responsible for sustainability in the group, including environmental sustainability and climate change, and the environmental sustainability committee reports progress to the board on a regular basis. For the year ahead, the board has included sustainability in the ambit of the social and ethics committee’s terms of reference, further enforcing the board’s commitment to sustainability.

All regional offices now report on key environmental indicators and through our procurement and operational gatekeepers, we encourage our suppliers, business partners and franchisees to minimise their environmental impact wherever possible.

The group’s environmental sustainability policy (available on our franchisee extranet and website at http://www.spurcorporation.co.za) encourages employees at the group’s restaurants and corporate offices to implement the group’s environmental principles and practices and addresses the following areas:

  • Energy efficiency
  • Water conservation
  • Waste reduction
  • Procurement/supply chain management
  • Transport
  • Packaging
  • Events
  • Measuring and reporting
  • Awareness
  • Community involvement

The policy is supported by a detailed set of environmental sustainability policy guidelines and by an environmental sustainability pledge signed by store owners, managers and employees.

OUR SUSTAINABILITY JOURNEY SO FAR

Increasing Environmental Awareness

The group’s eco-toolkit aims to raise awareness throughout the group, including corporate employees, franchisees and their employees. The toolkit provides information and practical implementation guidance on environmental matters.

The group’s sustainability team facilitates various training courses to corporate and franchisee employees to raise awareness and provide practical tips on environmental issues. The team trained over 200 employees and selected franchisees during 2014 on the group’s environmental sustainability policy and eco-toolkit rollout programme.

Environmental champions have been identified to drive a greener way of doing business across the group and its franchisees.

The group also raises awareness of environmental issues to customers through the ecological messaging in the quarterly Spur Secret Tribe magazine, now also available on bookstands. Spur’s EcoWarriors initiative engages kids from different communities on developing and ensuring a sustainable living. The EcoWarriors website (www.spur.co.za/ecowarriors) includes eco tips for children and fun activities to increase environmental awareness. Other forms of engagement with stakeholders include messaging around environmental initiatives in print, on social media, emailers and internal communications.
 

Energy-efficiency

The group is committed to integrating the impacts of climate change into its risk management processes and strategy where these are material. The group understands its responsibility to reduce greenhouse gas emissions by promoting efficient energy use at group and franchisee level. An energy audit was conducted at corporate offices and franchised restaurants to identify the group’s overall energy requirements, key concern areas and ultimate intervention plan. The group invested in retrofits to minimise and monitor energy consumption.

Corporate
The reporting offices have implemented various energy-saving initiatives, including timer switches for lights and air conditioning, energy-saving light bulbs and tinted window films. Spur Corporation consumed 401 028 kWh of electricity in 2014, a 15.7% decrease on 2013 (475 739 kWh). These figures relate to the Gauteng, Durban and Port Elizabeth regional offices and Cape Town head office, training and customer care centre. Calculated per person at these operations, consumption fell from 222 kWh per person in 2013 to 173 kWh per person in 2014.

Franchisees
The group’s energy efficiency campaign aims to raise awareness among franchisees and their employees through eco-toolkit training, green operations assessments, information posters and stickers to educate, inform and engage at grassroots level.

Given the rapid increase in the price of electricity, improving energy efficiency has become an important focus to protect franchisees’ cash flow margins. All franchisees have received guidelines on how to reduce their energy consumption, with the added benefits of reducing their operating costs and making their businesses more environmentally sustainable. The group has developed revised restaurant building specifications for franchisees that incorporate energy-saving principles and practical implementation guidelines.

   

Water conservation and reduction

The group’s corporate offices do not use significant amounts of water. The group sources most of its water from local municipalities with a small amount of ground water used to water the gardens. The environmental sustainability committee has identified the group’s sauce and décor manufacturing facilities as critical consumers of water.

Water-saving initiatives focus primarily on ensuring production efficiencies in the group’s manufacturing plants and raising awareness to change employee behaviour. The environmental sustainability committee has recommended that the group focuses on water management instead of water saving.

Water quality is becoming an increasing concern for franchisees, especially those outside of the large cities. In certain areas, franchisees are forced to ensure an alternative supply of water where municipal water quality does not meet our standards.

   

Waste management

Corporate
The Spur group’s corporate offices have implemented waste reduction and recycling programmes. The environmental sustainability committee has provided all corporate offices with the necessary guidance and information to ensure accurate and complete data collection. Waste recycled includes organic waste and general office items such as paper, packaging (cardboard, plastic and tin) and office-related electronic waste.

Spur Corporation has partnered with the Zero-to-Landfill programme to manage the waste generated by head office. This programme informs employees how to separate organic waste and recyclables in a clear and practical fashion. Currently, 85% of the waste generated by head office is recycled or composted, with only 15% going to landfill.

The group’s operations do not generate material air or water emissions.

Franchisees
Franchisees are mostly tenants in shopping centres and are dependent on their landlords to facilitate efficient waste management. Spur Corporation’s head office has engaged franchisees and landlords to implement a practical waste management process at restaurant level and waste reduction will be considered as an integral part of the design of a store going forward.

The group participates in a cooking oil recycling programme. We achieved our first significant milestone during 2012, converting more than 1 million litres (cumulative aggregate) of vegetable cooking oil from group franchised restaurants in the Western Cape to biodiesel to power fishing vessels, trucks and mining equipment. We formalised relationships with established collectors in all regions during the year and for the period 1 January 2014 to 30 June 2014 (the period for which reliable data could be obtained) we collected 454 633 litres in Gauteng, 176 875 litres in KwaZulu-Natal and 179 553 in the Western Cape.

   

Procurement/supply chain management

Our franchise network is a significant consumer of food products. While sustainable procurement is a key risk for the group and forms a large part of our overarching strategy, it is also one of the most difficult strategies to implement. Sustainable practices are a key consideration when assessing suppliers and we actively manage our supply chain to reduce environmental risk.

The scope of issues under consideration has widened to include commodities such as palm oil, a core product for the group, which is associated with the displacement of people and destruction of forests in developing countries. Spur Corporation takes great care to ensure goods are procured from ethical sources with environmental best practices in place.

Refer here for further strategies concerning the sustainable supply of raw materials.

   

Packaging

The design team has developed a packaging range that uses mostly renewable materials and reduced ink coverage and number of colours across the Spur, Panarottis and John Dory’s brands to reduce the environmental impact during the manufacturing process. The procurement team engages with its packaging and printing suppliers continually to develop and explore sustainable alternatives and minimise waste.

Where plastic packaging cannot be avoided, only recyclable plastics are used. All packaging contains clear messaging on what it is and how it can be recycled.

In 2014, 1 433 metric tons of takeaway packaging was used across the group’s brands. Furthermore, 58% of the packaging was made from renewable resources such as paper from trees and 42% was from non-renewable resources such as plastic from oil.

   

Transport management

Spur Corporation is essentially a people business and site visits are necessary for the operations management teams and management to monitor and add value to franchisees. Operations management teams report on vehicle mileage and fuel consumption. Total travel fell during the year, due to an increased focus on reducing travel costs and the use of technology such as Skype where possible. Local return flights during the year decreased 12% to 1 187 flights, international flights reduced by 9% to 258 flights and car hire bookings fell 26% to 358 bookings, relative to the prior year.

   

Measuring and reporting

Corporate
The group has set reduction targets for various sustainability metrics, which are currently being re-evaluated in light of the realities of the business. Data collection is also at an early stage, as not all group sites have reported consumption figures.

Franchisees
The group’s eco-checklist, together with the green operations assess-ment, introduces environmental KPIs at franchisee level so that these can be monitored and the group’s total environmental impact better understood. KPIs cover specific greening initiatives, energy efficiency, waste reduction, water conservation, eco-procurement and general administration. The process also creates regular awareness of issues among franchisees. During the year, the green operations assessment was rolled out to all Spur Steak Ranches and Panarottis outlets across South Africa and the operations management teams report biannually on their progress. Training was held for John Dory’s and this operation will be rolling out its own green operations assessment from September 2014. The environmental sustainability committee will further be engaging with The Hussar Grill and Captain DoRegos to establish their sustainability baseline during the 2014-2015 financial year.

   

Community involvement

The environmental sustainability committee currently supports a number of ongoing initiatives that align with the group’s sustainability principles, including Creating Change, our WESSA schools project and a clean-up project with Ocean View Football Club in May 2014. More information on these and other Spur Corporation projects are available on our website at www.spurcorporation.co.za.

The group is proud of its achievements to date. However, we acknowledge that many opportunities remain to improve our environmental performance on the road to building a more sustainable business into the future.


Key environmental strategies for 2015

Transport management and policy development
Green operations assessment implementation at franchisee level
Environmental sustainability training and awareness
Measurement and verification of environmental KPIs
Stakeholder engagement on environmental issues relating to group operations
Event greening (all outdoor events)
Procurement and supply chain review to reduce environmental risk
Alignment with extended producer responsibility
Engagement on environmental legislation
 

Sustainability Framework 2015

 

Case Study – Green Operations Assessment

The group’s eco-checklist, the green operations assessment, introduces environmental KPIs at restaurant level to improve our understanding of the group’s total environmental footprint, highlight areas of concern and enable us to support franchisees to improve their environmental impact.

The checklists include 26 questions across five areas – energy efficiency, waste management, water conservation, ecoprocurement and general administration.

The green operations assessment was rolled out to all Spur and Panarottis outlets across South Africa. During the year, 314 restaurants submitted assessments, comprising 93% of Spur restaurants and 79% of Panarottis outlets. The average score across Spur restaurants was 65% and Panarottis restaurants averaged 57%. While energy and waste management scored well, the assessments highlighted water conservation, general administration and ecoprocurement as areas where further support is required.