Domino's Pizza delivers environmental performance

Domino's Pizza is recognised as the world's leading pizza delivery company. Not only does the company work hard to earn the loyalty of millions of pizza lovers, it is also committed to being at the forefront of environmental performance and recently commissioned a Carbon Footprint Report through TEAM.

Background

Over 12,000 team members work in Domino's UK and Irish stores, three production facilities in Milton Keynes, Penrith and Naas, Ireland, and in a range of support functions including marketing, IT, training and fresh dough production at the company's head office in Milton Keynes. All of Domino's 563 stores are owned by franchisees, who are responsible for delivering the company’s high standards to customers.

Domino's commitment to the environment is evident in a host of significant initiatives that aims to reduce greenhouse gas emissions nationally. These include the use of automatic refrigeration monitoring systems and lighting controls and vehicle monitoring systems. The company also participates in a Climate Change greement, which commits them to reducing its energy consumption in line with industry targets, and is a member of a car share initiative and the Government's cycle to work scheme, which is using tax incentives to encourage employees to use their bicycle to travel to work. The packaging and promotional material produced and used in-store is predominantly made from recycled material.

In late 2008, TEAM carried out Carbon Trust opportunity assessment surveys for Domino's main sites; namely the headquarters and production facilities in Milton Keynes and Penrith.

Calculating a carbon footprint

As a major international company and having recently moved into the FTSE 250 rankings, Domino's is very aware of its responsibility to its shareholders. This position, coupled with a great interest internally and from franchisees in improving environmental performance, led the company to take steps to determine its carbon footprint.

Tasked with choosing the right consultancy was Domino's IT Director Jane Kimberlin. She explains, "We looked at a number of consultants for conducting the carbon foot printing exercise, but we were particularly impressed by TEAM. Everyone we had contact with was knowledgeable and we liked the fact that they would be carrying out the Carbon Trust surveys as well as the carbon foot printing, eliminating the need to use separate suppliers. The fact that TEAM also offer energy management software and a wide range of services was a bonus, as we may look into using these in the future."

A carbon footprint is defined by the Carbon Trust in 2009 as "the total set of greenhouse gas emissions caused directly and indirectly by an individual, organisation, event or product". Calculating the carbon footprint of an organisation can be the first step in a programme to reduce the emissions it causes.

In order to determine Domino's carbon footprint TEAM used the GHG protocol. This process differentiates between three different classes of emissions to highlight the areas over which the organisation has the most direct influence at a local level, compared with its indirect emissions from its staff commuting, for example.

In addition, TEAM calculated Domino's own carbon performance indicators to take into account changes in its business activities and structure, measuring Domino’s Pizza IT Director Jane Kimberlin Consultancy Services

CO2 against various metrics, including the number of employees, production levels, floor area, financial turnover and delivery mileage."This is key, especially in our organisation, as we are continually growing and are currently planning substantial expansion for our main production facilities. The carbon performance indicators allow us to determine how much of the change in our carbon footprint will be due to changes in our business activity," says Jane Kimberlin.

Even though Domino's Pizza Group has no direct influence on energy consumption at their franchised outlets, they are supporting their franchisees with advice and help to implement energy reduction schemes at store level. Actions include investigation of gas efficient ovens in stores and the introduction of super-insulated delivery bags to eliminate the use of electricity for reheating.

Using carbon footprint information

This first carbon footprint report for Domino's has created a benchmark against which the company's future environmental performance can be compared. Jane Kimberlin adds, "TEAM's report has also provided a host of useful recommendations to reduce carbon in the future, a number of which we have already implemented and more are being considered". Domino's has already:

• Formed an internal Environmental Group
• Published its Environmental Policy
• Replaced various lighting with more energy efficient alternatives
• Increased the cooling temperature in the head office server room considerably reducing energy costs
• Held an environmental meeting at their annual Franchisee Conference 

Domino's internal Environmental Group investigates ways of reducing carbon emissions and implementing these wherever possible. The group consists of representatives from different departments including Operations, Production, Marketing, Food Safety, Property, PR, Finance and Health and Safety and is headed up by IT Director Jane Kimberlin. The environmental meeting at Domino's Franchisee Conference was greeted with considerable interest with numerous suggestions for environmental improvements recorded and being followed up.

Future plans

Domino's main focus currently lies on the forthcoming move to state-of-the-art production and headquarters facilities at a new site in Milton Keynes. While the main reason for the move is to accommodate the continued growth of the company, Domino's is also using this as an opportunity to further reduce its carbon footprint.

The new buildings are being constructed to the BRE Environmental Assessment Method (BREEAM) standards, which is the leading and most widely used environmental assessment method for buildings. BREEAM sets the standard for best practice in sustainable design and has become the measure used to describe a building's environmental performance.

Domino's Pizza is committed to monitoring its carbon emissions in the future. Once their site move is complete, the company will be looking at its carbon footprint again. With such a strong commitment to carbon reduction, their carbon footprint is likely to be smaller next time around.