feel good about your happy place

Feel good about Your Happy Place®

The Coffee Club’s Sustainability and Social Responsibility Report as at May, 2021.

Making a positive impact on society has been part of our culture since our first store opened in 1989. The Coffee Club and our store network have raised hundreds of thousands of dollars for charities and community groups and over the last few years we have acted to better our sustainable practices. However, positive contributions go beyond this and now we are thinking bigger and better on how we can help to create change for good.

As we evolved our brand in 2020, we committed to sustainability being part of our DNA. Our brand values of local, human, proud, evolving, and distinct are at the forefront of everything we do at The Coffee Club and we will continue to focus on making better choices for our brand, our customers, our franchise partners and our local communities.

Aligned to our vision of becoming the most customer connected café experience in the world, we understand that our customers want to know the impact of our choices. By providing transparency around what you are buying, eating, and drinking, it is important for us to align with your expectations and deliver a connected experience with purpose.

Our commitment to clear and genuine communication has led us to creating our first sustainability report, exploring what sustainability really means for us as a business, and the positive impact on our franchisee partners, our customers and the world around us.

As we look to the future, we want to embrace changes for good and meet the ever-changing consumer landscape to grow our brand with purpose. I am proud of the changes we have made to become better across all areas of our business, and look forward to evolving further over the years to come.

Nick Bryden Chief Executive Officer

Message from our CEO Nick BrydenThe Coffee Club Nick.

There are many facets to sustainability that we have changed within our business. This report aims to detail what we are doing right now and what we plan to do in the future across three key areas of the business:

Our people and communityPromoting equality and diversity, rewarding our people and utilising our store network to support local community programs.

Our food and beveragesWorking with local Australian food and beverage supply partners who promote sustainability and ethical purchasing, purchasing 100% of our coffee through a Sustainable Coffee Program, and offering an inclusive menu including more vegan, gluten and dairy free and clean options.

The environment Reducing single use plastic across our network, eliminating it completely by 2025 and leading the industry on recycling initiatives.

By publishing this Report, we aim to:• Be transparent with our customers, franchisees, shareholders, suppliers and staff with our

current Sustainable and Social Responsibility initiatives, and our future plans;

• Use today’s data as a baseline for future goals.

• Set future five-year sustainability goals.

We believe in operating an economically sound business that supports our franchisee partners to provide quality customer experiences, celebrate and empowers their teams and run profitable café businesses.

We believe in making sure the people we do business with are treated well. This includes safe working conditions and fair pay, from the people who produce our ingredients right through to the people serving in our cafes.

We believe in equality and diversity in our workplaces, and actively support and promote inclusion across our business.

We are proud to be part of our local communities and we support causes that are important to our community of franchisees and customers. This includes local charities and community-led fundraising initiatives.

We are aware there are environmental impacts to doing business. Acknowledging this, we have been working to increase our environmental awareness, however, we recognise that we still have more work to do. That’s why we are committed to doing even better to reduce our environmental impact through our 2025 Sustainability Plan.

As part of our responsibility to our communities, we will review each step in our business process and actively look for new ways to reduce our environmental impact. This will include a responsibly sourced supply chain policy, a reduction in single use products and a focus on our recycling program.

We will make sustainability in environmental and social aspects of business decisions as important as economic viability. Our initiatives will consider all areas of our business but will have a special focus on our supply chain, our environmental impact and our local communities, customers, franchise partners and employees.

OurSustainabilityStatement.

OurSustainabilityMission.

To profit with purpose.

To live and breathe our company values and vision while working together to better our sustainable practices and inspire our franchisees, employees, customers, and communities to make good choices.

OurAchievements.

People.

Equal opportunity employer for people

with disabilities.

Paid parental leave policy to support

primary carers in Minor DKL

corporate roles.

57% female

in corporate roles within Minor DKL

Food Group.

43% male

Return-to-work program for

returning parental carers in Minor DKL

corporate roles.

Currently

Food.All milks including plant based varieties are free from preservatives, artificial flavours and colours and are made from over 95% Australian ingredients.

Potato chips are non-

Genetically Modified

Organisms (GMO)*. *Applies to potato chips not

including sweet potato fries.

responsibly sourced RSPCA

Approved Australian

chicken

^Applies to fresh shell eggs not including eggs in fritters, cakes, pancakes, sauces or ready to go cabinet products.

Over 80% of food supply is

Aussie made.

Hot Beverages.

of our coffee is

purchased under our partner’s

Sustainable Coffee

Program.

of our coffee is roasted locally in

Melbourne, Australia.

of our tea is ethically

sourced and provided by

Dilmah.

of our coffee and chocolate powder are

free from artificial flavour, colours and

preservatives and are non-GMO.

$30K donated in 2020 to BlazeAid

for bushfire support.

Free coffee

donated to the nurses of the Wesley Hospital

during COVID19.

$100Kraised from ourCoffee Fund will be donated to support coffee sustainability.

+ many local store donations to various charities and community groups

$2.1 million donated raised since 1993, supporting the Children’s Hospital Foundation and hosting The Coffee Club Telethon Ball annually since 2014.

Community.

Helping sick and underprivileged children in Australia by providing volunteer and donation support for the “Special Children’s Christmas Parties” charity.

$9.3K donated in 2020 to the Red Cross for bushfire support.

Funded a network donation drive to support the 2020 Children’s Hospital Foundation Telethon.

Environment.

We are part of the Simply Cups

upcycling program which saves an

estimated 10 million coffee cups

from landfill. Single walled cups saves an

estimated 69 tonnes of

paper per year.Sustainable

packaging saves and estimated

468,500 Styrofoam containers per

year from landfill.

Removed single use plastic straws

saving an estimated 9 million plastic

straws from landfill per year.

Wooden stirrer sticks used instead

of plastic stirrers saving an estimated 339,000 single use

plastic stirrers from landfill or oceans

per year.

Our Sustainable Future.

Celebrating true equality and diversity in the workplace and aiming to better the future for our people and our communities.

People & Community.

• We are stringent in our compliance with all state and federal legislation. We aim for a fair and safe working environment for all our employees.

• We employ all our people under the appropriate award (or above) and pay all superannuation on time and we expect the same of our partners and suppliers.

• We aim for true equality and diversity in our workplace by encouraging individual differences, skills, talents, and views. Everyone is valued and encouraged to learn, develop, and grow.

• We encourage a work/life balance for all employees and provide relevant options for employees returning from parental leave.

• We encourage a work environment where wellness and mindfulness are supported.

• We are passionate about supporting Australian communities through charitable efforts throughout the year.

• We align our community support with local partners who are important to our customers and our franchise network.

• We promote charitable efforts internally to inspire our employees and franchises to work with their own local charities in their communities.

Our Ethos – People & Community

Minor DKL Food Group is committed to providing an inclusive work environment which is supportive of difference. We recognise that the differences our people bring to the workplace add to its strength. Diversity encompasses gender, age, language, cultural background, sexual orientation, religious beliefs, and ability. Diversity also refers to the many ways we are different in other respects such as educational level, job function, socio-economic background, geographic location, thinking style and whether one has family responsibilities.

At Minor DKL Food Group, we currently have a 57.4% female and 42.6% male gender ratio in corporate roles. Our current leadership team gender ratio is 16% female and 84% male. Our aim is to have a 50/50 ratio in leadership by 2025 with no gender pay gap. We seek to make the most of the talents and skills of all employees as a contemporary and leading organisation in gender equality.

We plan to promote International Women’s Day, International Men’s Day and Transgender Day of Remembrance each year and all employees will complete gender bias training by the end of 2025.

2025 Goals – People & Community

• 50% women / 50% men in head office (HQ) and at a store level.

• 50% women in leadership.

• 100% gender pay equity across our network including leadership roles.

• At least 30% people of colour by 2025 in corporate roles and franchisee partnerships within Minor DKL Food Group including representation of Aboriginal and Torres Strait Islander people.

• Develop an Indigenous Employment Strategy that includes a commitment to increasing our representation of Aboriginal and Torres Strait Islander employees to 3% by 2025. This will bring our Indigenous workforce in line with the percentage of Aboriginal and Torres Strait Islander people within the greater Australian population.

• 100% of our workforce to complete anti-bias training.

• 100% of our workforce to complete cultural awareness training.

• Implement a program of volunteering opportunities for staff.

• Provide back to work opportunities for returning parental carers.

• Provide franchising support opportunities for Aboriginal and Torres Strait Islander people.

• Partner with an Australian national charity organisation or platform to coordinate donations to local charities and causes through our stores across Australia.

• Implement our national Community Social Responsibility (CSR) program including our charity partnership program and donation of funds both through customer fundraising initatives instore and company donations.

• Raise and donate $500K in CSR funds by 2025.

• Partner with a food charity organisation to reduce food waste and positively contribute to society.

Our Food & Beverage.

We want to better our sustainable food and beverage practices by investing in long term, local supply partnerships who make sustainability a priority in their businesses and together we can do good for the future of Australia and Australians.

Our Ethos – Food & Beverage

Food and beverage are an important part of our café experience making our supply chain a key part of The Coffee Club’s sustainability strategy. Quality and pricing have always been important to us, as well as working with local supply partners where possible.

• To support local suppliers wherever possible.

• To work with supply partners who make sustainability a priority in their business and align to our own sustainability goals.

• To award supply agreements to those suppliers who can provide transparent and honest sustainability credentials including certifications, auditing, and traceability documentation.

• To ensure all suppliers have completed and signed our Minor Business Partner Code of Conduct and are certified and accredited in our compliance system which is aligned to our sustainability goals.

• To ensure our meat, poultry and fish supply is responsibly sourced.

• To work with suppliers who adhere to the modern slavery act.

• To work with suppliers who fund initiatives that protect and improve the environment.

• To encourage and champion supplier programs that improve social justice and equality, community health and education.

• To seek out and work closely with supply partners who are passionate about improving the nutritional value of food including reducing unacceptable additives, preservatives, artificial colours, and flavours as well as reduced saturated fats, sugar and salt.

Our 6 pillars for sustainable

supply partnerships

6.Nutritional

5.Social

4.Environmental

3.Responsibly

Sourced

2.Longterm

Partnerships

1.Australian

2025 Goals – Food & Beverage

• 100% responsibly and ethically sourced meat, poultry, and fish across our network.

• Offer an inclusive “better choice” menu that caters to everyone. By 2025, our menu will consist of a variety of vegan, gluten free, dairy free, egg free, and nut free dishes as well as “better choice” options for families including items lower in saturated fat and sugar.

• 100% clean ingredients free of unacceptable additives, artificial colours and flavours and preservatives.

• Reduce food waste by implementing a program with a food charity to donate unused food to those less fortunate.

• Raise an additional $300K to support sustainability projects through our coffee partners Sustainable Coffee Program.

• Implement a Coffee grounds collection program across the major capital cities in Australia where we are located.

The Coffee Club’s Supplier Information.

The Coffee Club already has numerous long-term partnerships in place with suppliers that are actively working to better their sustainable practices.

Product Supplier Country of Manufacture

Country of Ingredients

External Accreditations Nutrition Details Sustainable Efforts

Coffee Black Bag Roasters

Australian roasted

Brazil, India, Columbia

Coffee is non-GMO and free from preservatives, artificial colours and flavours.

100% of coffee is bought under the Sustainable Coffee Program (SCP). Black Bag Roasters have three pillars of sustainability; profitability at farm level, environmental protection and improvement and social reforms.

Dairy and Plant Based Milks

Bega Dairy and Drinks Australia Australia

All dairy and plant-based milks are non-GMO and free from preservatives, artificial flavours and colours.

Reducing total energy use by 8.6% and carbon emissions by 12.8%.

Science-based target of - 30% carbon reduction by 2026. Pathway: improve energy efficiency; purchase or invest in renewable energy.

2026 target - 10MW solar generation capacity, delivering an estimated carbon emissions reduction of more than 1,100 tonnes of CO2-e per year.

Eggs Sunny Queen Australia Australia

100% Australian Cage Free Eggs

Cage Free Eggs Sunny Queen Farm to Table Standard and ESA Level 3

Gluten free

Primary packaging made from at least 70% recycled material.

Secondary packaging made from at least 35% recycled material. Packaging fully biodegradable.

The table below outlines some of our existing partnerships and their current sustainability achievements. Over the coming years we will grow this to include more achievements by working with our existing suppliers as well as seeking out new partnerships.

As at May 2021, the following table includes information from some of our long term suppliers.




Bacon, Ham, Pulled Beef, Chipolatas, Chorizo

Primo Foods AustraliaAustralia, North America & Europe

All products are non-GMO and gluten free. Bacon, Ham, Chorizo and Chipolatas are free from artificial flavours and colours.

Australia’s largest single rooftop solar installation at Primo’s Wacol facility reducing grid electricity usage by 19% and will save 1.2 million tonnes of CO2 over 20 years.

Donated products throughout 2019 to Foodbank, $389,000.

Chicken Wanniassa Wheeler Food Australia Australia RSPCA Approved

& Certified

Chicken Schnitzel, Buttermilk Chicken Tenderloins and Flame Grilled Chicken products are all non-GMO and free from preservatives, artificial flavours and colours.

Burger Buns and Ciabatta Bread

The Flour Shop Australia100% Australian Wheat

Non-GMO and free from artificial flavours and colours.

Working with Australian farmers to buy our wheat before getting it milled.

All wheat used in Coffee Club products is 100% Australian. Source ethical products and ingredients e.g., only source imported goods from fair trade organisations. Refuse goods containing palm oil or derivatives of palm oil if not RSPO.




Chips, Hash Browns, Sweet Potato Fries, Wedges, Onion Rings

McCain Foods (Aust)

Australia, South Africa and USA

Australia, South Africa & USA

Chips, Hash Browns and Wedges are Non-GMO. Our Chips, Hash Browns, Onion Rings, Wedges and Sweet Potato Fries are all free from artificial flavours, colours, and preservatives.

Global target of reducing CO2 emissions by 50 per cent and 100% renewable energy by 2030.

Moving to 100% renewable electricity in all French fry and appetizer plants by 2030.

Globally 25% reduction target in CO2 emissions from potato farming, storage & freight by 2030.

Reduction in CO2 emissions by 2030 & ceasing use of coal by 2025.

Real example - onsite solar panels being installed at the Ballarat plant which will reduce CO2e emissions by more than 27,000 tonnes each year, roughly equal to the carbon footprint of 1,100 Australian homes.

Beef Burger Patties

ANZCO- Angel Bay New Zealand

100% NZ beef and local and imported ingredients

Member of NZFAP certification - New Zealand’s National Farm Assurance Programme. Member of the Climate Leaders Coalition NZ and Sustainable Business Council New Zealand

Non-GMO and free from growth hormone promotants.

24% grass fed beef brisket. Patty 70% Beef. Real onion used, not dehydrated. Animal Welfare.

NZ Born and bred stock and farm traceability.

Sustainability standard for farm environment, people engagement and biosecurity measures.




Fish & Seafood Bidfood International

Salmon fillets are from Norway. Each year Norway is responsible for 33% of the world’s production, making it the largest producer of Atlantic salmon in the world.

Norwegian Atlantic salmon, noted for its clean and green image, is grown in the deep-water fjords that dominate Norway’s coast. They are governed by one of the strictest production regimes in the world meaning its responsibly sourced.

Beer battered whiting is wild caught in New Zealand.

Bidfood has ordered its first electric truck for trial with the objective of reducing the amount of diesel usage. Bidfood is also building smaller sites that are closer to customers to reduce the length of delivery runs.

Reconciliation Action Plan (RAP) - Actions to increase opportunities for employment, growth and development of Aboriginal and Torres Strait Islander peoples.

Avocado Simpson Farms Australia

Predominantly Australia fruit used, when in short supply New Zealand fruit sourced

Non-GMO, gluten free and free from preservatives, artificial flavours and colours.

100% Avocado, made from freshly harvested Hass Avocados. When in short supply Shepard Avocados may be used.

Compositing the waste of processing plant as part of our composting strategy.

Fresh Fruit & Vegetables In2Food

Australian grown and fresh farm to plate

Australian grown and harvested

Most fruit and vegetables are hand sliced by our chefs in The Coffee Club stores.

Cage Free Eggs.

Sunny Queen are an Australian company owned by 100% Australian farmers who are committed to producing quality eggs that are laid by healthy and well cared for chickens.

The Coffee Club has been partnering with Sunny Queen for 6 years to provide our customers with 100% Australian shell cage-free eggs.

Hen welfare is at the core of everything they do, across all production systems. Sunny Queen go above and beyond to ensure best farming practices are adhered to across all production systems.

Their cage free hens are housed inside large barns that have plenty of natural light, fresh air, and space for dust bathing.

• There are plenty of perches for hens to perch and socialise

• Cosy nesting boxes are provided for hens to lay their eggs in privacy

• Hens are visited daily by farmers and checked regularly by vets

• They have access to food and water 24 hours a day

The Coffee Club purchases over 11 million eggs per year. That’s a lot of happy chickens!

Helping to keep Australian chickens in their happy place!

Cage Free Eggs.

Coffee.

The Sustainable Coffee Program (SCP)

Coffee is often seen as a commodity and is traded as such. This means that most coffee sold around the world is done so based on a commodity price. When the commodity price falls, farmers can find themselves being paid below cost of production for their coffee.

Often in isolated regions with small farms and no other avenues for sale, farmers are stuck in a cycle of poverty. Communities with no ability to invest in better farming practices and improving the land, no money to buy new trees, fertilisers and to employ labourers, no money for schooling or education, are susceptible to using child labour and sometimes this can even include modern slavery. They are certainly not able to improve their yield or the quality of their coffee.

The Coffee Club buy 100% of our coffee via our coffee partner’s Sustainable Coffee Program (also known as the SCP). This program helps combat some of the inequalities of the coffee industry by:

• Buying specialty grade coffee above commodity prices;

• Dealing directly (including visiting countries of origin) with co-operatives, large independent farmers, and specialty coffee brokers to help producers understand and produce to our quality parameters;

• A Coffee Fund to help with financial incentives, education, and training to help support the local communities; and

• Creating long term partnerships that build trust and open communication so we can encourage change that encompass all three pillars of sustainability: profitability at farm level, environmental protection, and social well-being and good health.

Coffee is the heart of our business.

We are passionate about our coffee partner’s Sustainable Coffee Program and doing more to help sustainable coffee efforts all around the world.

We want to protect the future of coffee for generations to come.

Coffee.

From The Coffee Club’s perspective the success of this program enables us to understand:

• Long term business relationships that give us confidence of quality and ongoing supply;

• That paying a premium direct to the farms encourages investment in farming, creates more stability and economic security;

• The traceability of our coffee back to its origin, processing methods and sustainable practices;

• The impact our business makes in local communities and on the farm by contributing to children’s education, community health, women in coffee, and much more. We do this by making regular trips to the origin where we can see the SCP in action.

The Coffee Club donates funds each year to help support environmental coffee projects. Since the program’s inception in April 2018, we have raised over $100,000 which will be donated to support sustainable initiatives.Coffee.

Environment.

Sustainable packaging is the development and use of packaging which results in improved sustainability. All forms of packaging produce some material that must be discarded. However, there are various improvements and practices we can implement to reduce the number of harmful products, such as single use plastic ending up in landfill and our oceans.

The Coffee Club uses packaging to protect our customers, to ensure the quality of our product, and to enable us to safely transport food and beverage items. We have started to make significant progress in our sustainable packaging and recycling efforts, and we are committed to improving this further so we can lead the way for future generations.

Working together to improve our environmentally sustainable practices and inspire our communities, employees, and franchisees to make good choices for the future of our planet.

Environment.

Reduce, Reuse & Recycle.

ReduceBranded takeaway coffee cups have been modified from double wall to single wall, halving the amount of paper and therefore

waste associated with cups produced and used by

The Coffee Club.

This initiative saves an estimated 69 tonnes of

paper per year.

RecycleThe Coffee Club takeaway coffee

cups are now part of the Simply Cups recycling program. Instructions on

the side of our takeaway cups direct customers to deposit used takeaway coffee cups into collection stations.

Cups are collected and upcycled into other products including keep cups,

trays, furniture, cup holders, and more.

The Coffee Club cold beverage takeaway cups are made from recycled

materials. They include instructions printed on the cup to direct customers on correctly recycling these cups and

giving them another life.

ReuseThe Coffee Club sells re-usable keep cups in store and offers

customers a 50-cent discount on any hot beverage purchased when using a re-usable cup to

reduce the use of takeaway cups.

This saves an estimated 105,726 single use takeaway cups ending

up in landfill every year.

Our Ethos – Environment

• We are stringent in our compliance with Australian waste reduction regulations including the elimination of all single use plastic straws from our network.

• We aim to reduce all single use packaging with a view to eliminating it completely from The Coffee Club network by 2025.

• We are actively involved in helping to reduce coffee cups from ending up in landfill by partnering with Simply Cups and offering customers discounts for their takeaway hot beverages in reusable cups.

• We are working together with our supply partners on creating more sustainable packaging solutions for food and beverage supply into our stores.

• We have reviewed our customer facing packaging solutions to transition to environmentally friendly alternatives.

• We are working towards improving our store design to become more eco-friendly by using various upcycled products across our design and fitout.

• The Coffee Club store network to be 100% free of single use plastics.

• Grow the Simply Cups upcycling program through customer education and the introduction of additional collection points and recycle at least six million cups from our network of collection points by 2025.

• Implement a recycling program for back of house operations.

• Increase refill takeaway beverage sales from 1.31% to 20% by 2025. This will save the production and upcycle requirement of 1.9 million takeaway cups.

• Introduce upcycled materials into our new store design.

• Introduce upcycled materials into existing stores including back of house operations and customer facing merchandise.

2025 Goals – Environment

RecyclingwithSimply Cups.

It is estimated that over one to three billion takeaway coffee cups end up in landfill each year in Australia….

In November 2020, The Coffee Club launched a partnership with Simply Cups, Australia’s largest cup recycling program. Simply Cups works with innovators to transform used paper cups into items of higher value. Different products are made using different technologies, and technologies mix paper cups with other recycled materials that would otherwise end up in landfill.

In little more than 3 years, Simply Cups has rescued more than 17 million cups from landfill. When placing each coffee cup end to end this would measure 1475kms, which is more than the equivalent of travelling from Melbourne to Brisbane (1374kms).

Once rescued, the cups are upcycled into new products such as garden beds, fence posts, wheel stops and even road surfaces.

Click here to view the video on how Simply Cups transforms recycled takeaway cups into other materials

Simply Cups https://www.simplycups.com.au/how-it-works

Send your cup to its Happy Place.... and not to landfill!

empty cup into tube

Slip

Tipexcess liquid into tube

Fliplids into lids tube

Disclaimer

Forward Looking Statements

This Sustainability and Social Responsibility Report includes statements about The Coffee Club Australia’s business and its future business plans, initiatives, goals and objectives. These statements are based on available operating, financial and competitive information as at the date of circulation, and are subject to a number of significant risks and uncertainties. Actual future results may differ materially depending on a variety of factors including but not limited to the impact of COVID-19; regulatory measures or voluntary actions that may be put in place as a result of COVID-19, product supply material prices and availability; successful execution of the company’s blueprint for growth and other strategies; cost reduction and other initiatives; and other risks that may apply from time to time. The company assumes no obligation to update any of the statements contained within this report. The report relates to The Coffee Club Australia brand only unless Minor DKL Food Group is referenced. Minor DKL Food Group is Minor DKL Food Group Pty Ltd and all of its related entities and subsidiaries.

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