Shake Shack, Inc. · NYSE:SHAK
Shake Shack — ESG Presentation (May 2021)
40 slides from Shake Shack's sustainability presentation, May 3, 2021
Slide 1: Stand For Something Good 2020 Summary
STAND FOR SOMETHING GOOD 2020 SUMMARY ® 1
Slide 2: A Letter From Our CEO
A Letter From Our CEO This past year was defined by challenge, innovation, perseverance, and strength. It forced us to make tough decisions on a daily basis, prioritizing the safety and wellbeing of our employees and guests above all else. Our core values—the very values detailed in this, the second
Slide 3: Our Mission
Our Mission We are on an endless pursuit to create uplifting experiences. Our products are elevated, modern and fun versions of the classics, and our mission is to Stand For Something Good in all aspects of our business. This prioritizes taking care of our team, sourcing premium ingredients from lik
Slide 4: Our Business + About this Summary
Our Business + About this Summary As of December 31, 2020, 183 domestic company-operated Shacks and 22 domestic licensed Shacks were operating in 30 states and Washington, D.C.; outside of the United States, there were 106 international licensed Shacks in 15 countries. Despite COVID-related developm
Slide 5: Table Of Contents
Table Of Contents SOCIAL OUR ENVIRONMENTAL CORPORATE IMPACT TEAM RESPONSIBILITY GOVERNANCE 2020 Company Milestones Our Culture Our Core Principles Governance Policies + Charters Corporate Giving 2020 People Milestones 2020 Supply Chain Milestones Our Board of Directors Community Meal Donations Compe
Slide 6: Social Impact
SOCIAL IMPACT 2020 Company Milestones Corporate Giving Community Meal Donations Spotlight on Oakland ® 6
Slide 7: 2020 Company Milestones
2020 Company Milestones For the second year in a Provided 11,000+ meals Implemented 10% Launched four Employee Donated $100K to Equal row, earned a 100% to healthcare and premium pay for all Resource Groups Justice Initiative in score on Human Rights frontline workers at the hourly employees, plus (
Slide 8: 2020 Corporate Giving
2020 Corporate Giving In 2020, Shake Shack raised nearly a quarter of a million dollars of direct financial contributions for causes we believe in, including: 25% Donation Days ($50K) Equal Justice Initiative ($100K) Fresh Air Fund ($32K) One of the ways we support our communities and EJI was founde
Slide 9: Community Meal Donations
Community Meal Donations We’re proud of our teams’ grassroots efforts to donate Shake Shack meals at the neighborhood-level. Grassroots Donations (11,000+ Meals) In response to the unprecedented strain on frontline and healthcare workers at the start of the pandemic, Shake Shack teams around the cou
Slide 10: Spotlight on Oakland
Spotlight on Oakland When we were finally able to open our doors at Uptown Station in Oakland, CA back in October, we knew we had to do something special to capture the spirit of the community. We partnered with mural artist Andre Jones who brought this vibrant and beautiful scene to life. Andre is
Slide 11: Our Team
OUR TEAM Our Culture LGBTQ+ Inclusion 2020 People Milestones Workforce Diversity Compensation + Benefits Talent Development Diversity, Equity + Inclusion Social Justice Initiatives Employee Resource Groups HUG Fund Stand Together Series ® 11
Slide 12: Our Culture
Our Culture At Shake Shack, people are the core of who we are and what we stand for. Our people are central to all our decisions and we actively work to foster an environment of hope, optimism, affirmation, and on-going learning. Working at Shake Shack is more than making a great burger. It's all ab
Slide 13: 2020 People Milestones
2020 People Milestones • Created more than 1,097 new jobs company-wide • 1,500+ internal promotions, with 56% going to women and 76% going to people of color • Provided over $6M in additional compensation and bonuses to our team members to support them during pandemic struggles • Established a dedic
Slide 14: Compensation + Benefits
Compensation + Benefits We evaluate our compensation practices and benefits with a lens for meeting the needs of a diverse workforce and strive to be inclusive in our approach to serving team member needs. Compensation COVID-19 Compensation and Benefits Actions • General Managers are eligible to for
Slide 15: Diversity, Equity + Inclusion
Diversity, Equity + Inclusion We are on a journey to foster a great place to work for all. All-In, our diversity, equity and inclusion initiative, launched in 2018 with a focus on attracting, developing, and enabling a highly diverse and inclusive workforce across all functions and levels of the com
Slide 16: Employee Resource Groups
Employee Resource Groups We launched four Employee Resource Groups (ERGs) to empower our team members and give a collective voice to diverse communities within our workforce. ERGs are sponsored by a member of our Executive Team and led by volunteers from across the company. They actively work to edu
Slide 17: Stand Together Series
Stand Together Series In the wake of the national civil unrest, we kicked off an internal conversation series to amplify the stories and voices of team members with diverse backgrounds. Our goal is to foster stronger feelings of inclusion and belonging while promoting allyship. The series has helped
Slide 18: LGBTQ+ Inclusion
LGBTQ+ Inclusion The Human Rights Campaign recognized Shake Shack as a Best Place to Work for LGBT Equality for our inclusive benefits policies and workplace practices. We are committed to creating welcoming spaces for our Team Members and Guests, and continue to do so by: • Encouraging team members
Slide 19: Workforce Diversity
Workforce Diversity Our company is as diverse as the communities we serve. Women make up 53% of our workforce and people of color 76%. Having diverse representation across all functions and levels of our business is key to our success and continued future growth. Gender Diversity by Roles Overall Hi
Slide 20: Workforce Diversity
Workforce Diversity Race/Ethnic Diversity by Roles Overall Hires – People of Color 1.5% 1.8% 3.9% 77% Overall Promotions – People of Color 22.9% 39.7% 76% 65.3% Our 2025 Target is to have 50% people of color in 76.5% Shack Leadership and 30% in Home Office Leadership 2025 roles. Target 75.6% Our Sha
Slide 21: Talent Development
Talent Development Shift Up is our new development program for entry-level managers at Shake Shack. We partnered with Food Education Fund, a nonprofit specializing in culinary arts to develop a curriculum and program. Shift Up provides Shift Managers with training to help improve their skill set and
Slide 22: Social Justice Initiatives
Social Justice Initiatives Shake Shack is, and always will be, a company that takes action to support equity and inclusion. This means listening to, and standing up for, ALL of our diverse communities. All-In and the ABLED ERG were instrumental in shaping our response to the social unrest and calls
Slide 23: HUG Fund
HUG Fund The HUG (Help Us Give) Fund is our 501(c)(3) organization created by Shake Shack to support our internal expression of the First Tenet of Enlightened Hospitality—taking care of each other. The HUG Fund provides a way for team members company-wide to take care of each other by providing quic
Slide 24: Environmental Responsibility
ENVIRONMENTAL RESPONSIBILITY Our Core Principles Our Responsible Future 2020 Supply Chain Milestones 2020 Packaging Highlights Our Core Menu 2021 Sustainable Packaging Plans Veggie Innovation Our Shacks Spotlight on Niman Ranch ® 24
Slide 25: Our Core Principles
Our Core Principles Through our domestic food supply chain, we're committed to working with best-in-class suppliers. We pride ourselves on sourcing premium ingredients from like-minded ranchers, farmers, and supply partners—using real, premium ingredients like 100% antibiotic- and hormone-free prote
Slide 26: 2020 Supply Chain Milestones
2020 Supply Chain Milestones 36,288 pounds of regeneratively ranched beef purchased from a Savory Institute Ecological Outcome Verified ranch in Northern California 222,086 pounds of non-GMO GAP-certified beef purchased from Pacific Northwest Co-Op 164,134 pounds of trash eliminated and 1.8 Million
Slide 27: Our Core Menu
Our Core Menu We have always been committed to sourcing only the best ingredients from like-minded purveyors. BEEF CHICKEN PORK FLAT-TOP DOGS • No hormones, ever • No antibiotics, ever • No antibiotics, ever • No hormones, ever • No antibiotics, ever • No hormones, ever* • No hormones, ever* • No an
Slide 28: Veggie Innovation
Veggie Innovation We’ve been working to expand vegetarian options beyond our beloved ‘Shroom Burger, testing various Veggie Shack builds at 30+ Shacks in key markets • Our fan-favorite ‘Shroom Burger has been a menu staple from the beginning: crisp- fried portobello mushroom filled with melted muens
Slide 29: Spotlight on Niman Ranch
Spotlight on Niman Ranch Having bought over a million pounds of natural, sustainable & humanely raised pork in 2020 from our partners at Niman Ranch, we know firsthand that ethical, sustainable practices make a difference you can taste. Our Bacon Benchmarks Support the Future ü Certified Humane® Boa
Slide 30: Our Responsible Future
Our Responsible / Future In 2021, we are actively working to better understand our carbon footprint and will continue to find opportunities to reduce impact: 1. Measuring the impact of our supply chain, with a focus on protein & dairy categories 2. Packaging: continuing the momentum from our industr
Slide 31: 2020 Packaging Highlights
2020 Packaging Highlights The dramatic switch to delivery and to-go, caused by the removal of indoor dining and increased safety precautions to combat COVID-19, surged to a 200% YOY increase in paper goods usage. On the bright side, we saw 40% YOY reduction in overall plastics usage. • Reduced over
Slide 32: 2021 Sustainable Packaging Pilots
2021 Sustainable Packaging Pilots REGENERATIVE STRAWS + CUTLERY REUSABLE ALUMINUM WATER BOTTLES Piloting AirCarbon® straws and Coming soon! Reusable aluminum water bottles cutlery at select Shacks starting March will be replacing existing Shack|2O plastic water 2021 bottles at select Shacks in April
Slide 33: Our Shacks
Our Shacks We are looking to better understand and ultimately reduce the environmental impact of operating our brick-and- mortar restaurant locations, everything from energy and water usage to air purity and transportation footprint. 2020 HIGHLIGHTS • Our Shacks feature reclaimed, salvaged, and Fore
Slide 34: Corporate Governance
CORPORATE GOVERNANCE Governance Policies + Charters Our Board of Directors Executive Compensation Practices Data Privacy + Information Security ® 34
Slide 35: Governance Policies + Charters
Governance Policies + Charters We are committed to the ethical POLICIES operation of our day-to-day business and to maintaining our principles as we Corporate Governance Guidelines Code of Business Conduct and Ethics continue to grow. Code of Ethics for Senior Financial Officers Insider Trading Comp
Slide 36: Our Board of Directors
Our Board of Directors Daniel Meyer Randy Garutti Jeff Flug Jenna Lyons Joshua Silverman Founder & Chairman of the Board CEO & Director Director Director Director Jonathan D. Sokoloff Robert Vivian Anna Fieler ® Tristan Walker Sumaiya Balbale 36 Director Director Director Director Director
Slide 37: Our Board of Directors
Our Board of Directors The members of our Board of Directors are individuals with a high level of personal and professional integrity and strong ethics and values. Our Board monitors the mix of specific experience, qualifications and skills, as well as diversity, of its directors to assure that the
Slide 38: Executive Compensation Practices
Executive Compensation Practices The objective of our executive compensation program is The compensation arrangements for each of our Named Executive Officers (NEOs) are intended to to attract, retain, and motivate individuals who share our encourage performance and growth and to align the NEOs' int
Slide 39: Data Privacy + Information Security
Data Privacy + Information Security GOVERNANCE + TRANSPARENCY CONTROLS, POLICIES + OVERSIGHT EDUCATION Our Audit Committee’s charter includes Shake Shack makes our privacy policies publicly Shake Shack is committed to implementing oversight over information security and available for each of our sal
Slide 40: Forward-Looking Statements
Forward-Looking Statements This Summary contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance an