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Papa Johns announces ESG metric for incentive compensation

U.S. pizza delivery chain to announce that compensation will be linked to environmental, social and governance priorities

Papa John’s International, Inc. (NASDAQ: PZZA) (“Papa Johns”) today released its 2021 Corporate Responsibility Report, covering initiatives to advance the company’s environment, social, and governance (ESG) strategy and topics most important to the company and stakeholders. In tandem with this year’s report, Papa Johns announced its corporate incentive bonus plan now includes an ESG metric, making the company the first major U.S. pizza delivery chain to announce that its ESG priorities will be linked with incentive compensation.

For 2022, the formula used to determine eligible team members’ and executives’ annual bonuses will be tied to advancing certain ESG priorities that align with Papa Johns purpose, values and business objectives. The ESG metric measures Papa Johns ongoing efforts to enhance diversity, equity and inclusion, assess environmental impacts and opportunities and further Papa Johns commitment to Better Ingredients. Better Pizza.®

“As Papa Johns continues to grow, we remain focused on priorities that set us up for long-term success and create a positive impact on the world around us,” said Rob Lynch, President and CEO of Papa John’s. “We are proud to be among the few companies in our industry linking incentive compensation with achieving ESG initiatives. Taking this step emphasizes the importance we have placed on corporate responsibility.”

The 2022 ESG priorities were informed by Papa Johns Materiality Assessment and established in collaboration with the Papa Johns Executive Leadership Team, Board of Directors and subject-matter experts across the company.

Additional Report Highlights

People

  • Named #1 Pizza Company on Forbes 2021 list of World’s Best Employers and featured on Forbes 2021 list of Best Employers for Diversity
  • Earned a 100 percent score on Human Rights Campaign Foundation’s Corporate Equality Index for the second consecutive year
  • Launched an Executive Inclusion Council charged with driving the company’s DEI strategy
  • Updated certain benefits, including enhancing retirement savings programs and expanding parental leave to offer six weeks of paid leave to all new parents – including birth mothers, fathers, adoptive, and foster parents

Pizza

  • Conducted annual food safety and quality audits of 100 percent of Quality Control Centers, where Papa Johns fresh original dough is made
  • Committed to transition to 100% of eggs and egg ingredients to come exclusively from cage-free suppliers for Papa Johns proprietary menu items by 2030

Planet

  • Reduced food waste through the Papa Johns Harvest Program, donating 250,000+ surplus meals to people in need
  • Diverted more than 242,000 pounds of waste from landfills by recycling the company’s reusable dough trays
  • Published Environmental Statement which outlines Papa Johns priorities: Sustainable Packaging & Materials Management, Sustainable Agriculture, Food Waste and Greenhouse Gas Emissions

Community

  • Introduced The Papa John’s Foundation Building Community Fund, a program for franchisees to apply for grants on behalf of local community organizations and awarded nearly $1 million to more than 100 non-profit organizations in over 40 communities.
  • Raised more than $3 million for The Papa John’s Foundation for Building Community through the “Pizza with a Purpose” campaign
  • Provided 30,000+ pizzas to first responders and those impacted by natural disasters

To view Papa John’s International, Inc.’s 2021 Corporate Social Responsibility report and learn more about the company's efforts, click here.

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