2021 | Sustainability Dining Report

SUSTAINABLE DINING UPDATE REPORT 2021

Azzurri Group Limited Sustainable Dining Update Report 2021 CEO’S WELCOME CONTENTS Welcome to Azzurri’s latest sustainable dining investment community for it’s attention towards report, which provides an update on our progress sustainability, as it was the �irst mainstream since our 2018 report. This year’s report follows a private equity �irm in the world to become a OVERVIEW challenging period for the business. The COVID-19 Certi�ied B Corporation. ("B Corp" is an award for 01 Sustainable dining crisis has had a profound impact on the casual companies that are leaders in their commitment at Azzurri dining sector, bringing unprecedented levels of to ESG and responsible business practices). This disruption to many businesses, including our own. has enabled us not only to secure the future of Despite these challenges our purpose is perhaps approximately 225 restaurants and shops - and clearer than ever, to build better food businesses some 5,000 employees - across our Zizzi, ASK that sustain happy, healthy lives. We remain deeply Italian and Coco di Mama brands, but also to look committed to our vision, to ‘serve better’ with food forward to our next chapter with excitement and businesses that nourish the individual needs of our optimism. As we re�lect on our progress and all people, our customers and our planet. Indeed, as that we have learned from our sustainable dining we do to our sustainable dining strategy. Built upon strategy so far, we are pleased to be building on a �ive pillars – Our customers, Our people, Our �irm foundation alongside a long-term investor 5 PILLAR APPROACH TO community, Our suppliers and Environment & with such a commitment to and strong track SUSTAINABLE DINING 03 Our People Planet - the strategy enables us to focus on the record in responsible ownership. We are proud 05 Our Customers issues that matter most to our stakeholders. By of where we are and look forward to seeing how 06 Our Suppliers 07 Environment & Planet putting responsibility at the heart of our business far we go next. 09 Our Community and focusing on those areas where we feel we can make the biggest difference, we can continue to move forward in a way that positively impacts our people, partners and local communities, and treads as lightly as possible on the environment. In the summer of 2020, we announced we had been acquired by a new long term partner, TowerBrook Capital Partners. TowerBrook is well known in the Steve Holmes Chief Executive Of�icer Azzurri Central Limited

Azzurri Group Limited Sustainable Dining Update Report 2021 Sustainable dining at Azzurri Since 2016 our sustainable dining strategy has set the course for our environmental, social and governance goals. Our approach to sustainability focuses on �ive key pillars: Our People, Our Customers, Our Suppliers, Environment and Planet and Our Community. 5 PILLARS OUR PEOPLE OUR CUSTOMERS OUR SUPPLIERS ENVIRONMENT OUR COMMUNITY AND PLANET Categories Categories Categories Categories Categories Looking after our people Safety during the COVID-19 outbreak Partnering with charities to Business Code of Conduct Reducing, repurposing positively impact our communities Listening to our people Balancing our menus and recycling waste Working with our supply chain partners Recycling food waste and The Mental Health Foundation Shaping careers ‘Peas Please’ pledge for more veg redistributing surplus food The future of sustainable dining Creating an inclusive workplace Decarbonising our business at Azzurri Reducing emissions further and faster 01

Azzurri Group Limited Sustainable Dining Update Report 2021 Whilst these pillars remain central to our wider approach, our outlook has evolved over the last �ive years as we have engaged with our people, customers, partners and investors, to understand their priorities and expectations. For example, in 2016 our customers told us that the following areas were most important to them: • The food I eat • Respect for people - treating employees and suppliers fairly • Animal welfare and �ish sustainability • Health and wellbeing - healthy and balanced menus • The environment We’ve checked in with our customers regularly since then to keep track of their thoughts and feelings about a range of different environmental, ethical and social issues. As we look ahead to the next phase of our ambitions, it is important to assess our progress and performance in each of the �ive key areas, and what will be important to take forward into the future. Our recent survey in January 2021 shows that the most important issues to our customers are: • The health and safety of employees and customers • Health and wellbeing - healthy and balanced menus • Respect for people - treating employees and suppliers fairly • Environment - avoiding single-use plastics and packaging reduction • High animal welfare standards - quality in food sourcing Whilst there has not been a great deal of change with key topics, the main change is the addition of health and safety of employees and customers, which understandably is linked to the effect of the pandemic. Having healthy and non-meat options, veggie/vegan food, an increased concern about animal welfare & single use plastic waste/recycling continues to increase in importance. These changes will �low into our new future ambitions. 02

Azzurri Group Limited Sustainable Dining Update Report 2021 OUR PEOPLE Looking after our people Listening to our people In March this year we also conducted our �irst survey of all our Our culture at Azzurri Group is what sets us apart, and there’s no employees about the environmental and social issues most Listening to our people and acting on their feedback is more doubt that this has helped us through the last year. Openness, important than it’s ever been, especially as restrictions are lifted important to them. honesty and respect for our people genuinely matters to us, and and they return to work. We had already established a regular we will continue to support all our team members through this employee engagement survey in Zizzi in 2019, and we continued challenging period and beyond. With so much uncertainty and this during the �irst lockdown, giving us lots of insight into what The top 3 key areas of importance to our many of our teams furloughed for long periods, our priority has our employees need and want from us. Speci�ic questions were been to keep everyone safe, connected and informed. We’re using designed to listen to teams’ concerns and to understand how teams were: all the channels available to us to ensure regular communication they were feeling at this time. On the whole, feedback has been from all levels of the organisation. During full lockdown this very positive; people feel we have responded appropriately to 60% of responders felt that it was important we choose included weekly updates from our CEO, Steve, telling people the Covid-19 pandemic, and it has been really encouraging to see suppliers who farm in an environmentally friendly way, with what we knew, when we knew it. Our dedicated Zizzi, ASK and loyalty, belief, satisfaction and overall engagement scores go up. Coco community apps have proved invaluable for staying in As we prepared to come out of lockdown, we conducted a survey high animal welfare standards, and use fairtrade or organic ingredients - sourcing ingredients from the UK is very important touch and supporting people – from signposting to our dedicated to ask our people how they felt about returning to work. Whilst to 35% of responders and fairly important to 28%. wellbeing support packs and �inancial advice, to starting online over 50% are happy to be coming back, 15% remain anxious. In conversations that bring people together. We have changed our response we are including sources of help and support in our Over 75% of responders believe it to be important to reduce Employee Assistance Provider to one that offers a range of training sessions and starting conversations around the signs of extensive virtual services available to all our employees and anxiety and how to seek support. Our aim this year is to roll out our plastic use and increase our recyclable packaging. their families, including easy access to 24/7 GP consultations, the engagement survey across all our brands and to check in The safety and mental well being of our teams is very important and mental health support. with employees to see how they are feeling about the return to to over 60% of responders. This data, alongside our customer work. Thanks to Zizzi’s partnership with the Mental Health Foundation, survey, will form the backbone of our 2025 strategy. we’ve been able to promote excellent support and resources for anyone experiencing stress or anxiety. We have a growing number of mental health �irst aiders across the business, and from 2021 line managers will be trained to spot the signs of any mental health challenges in their teams. They will be equipped to start conversations, to listen to people’s concerns, and to signpost further support where necessary. We intend to build on this partnership over the coming year with a focus on fundraising I could not be prouder to work for Zizzi right now. I have been telling my friends and family and training. how well senior leadership have dealt with the 8% pandemic with honesty and transparency. Overall 8% positive jump engagement in Promoters increased (Feb 2019 – Feb 2020) 03

Azzurri Group Limited Sustainable Dining Update Report 2021 OUR PEOPLE Creating an inclusive workplace We are committed to fostering an inclusive culture and a diverse workplace where people can be themselves and are given opportunities to develop their careers with us. We know that in our business, as in the sector generally, people of colour are under-represented, as are females in some of our operational roles – in particular, head chefs (9% female) but also operations managers (23% female). This is re�lected in our gender pay gap of 9.5% in 2020, despite having gender balance across the Boards of ASK and Zizzi. It is critical that we fully understand the reasons for these disparities and develop our new approach based on the Shaping careers evidence. As we do so, we will listen to our people and focus on Developing our people continues to be a priority for us. We’re the data before engaging more broadly with the sector and passionate about the opportunities that our sector offers, and we experts, to work out how we can take meaningful action to have designed fast-paced development programmes across our reverse these trends. brands. ASK’s Italian Journey and Avanti leadership programme, and Zizzi’s Viaggio, are now well established, providing exciting career paths for both front and back of house staff who want to progress in the business. We are now seeing tangible outcomes, with 80% of area managers having come through these programmes and over 65% of positions �illed by internal candidates. Lots of recent work has gone into continuing these online, and we are also now looking to scale them up, to get better at identifying high-potential people, and to build an executive development programme to support succession planning at the top of the business. 80% Having launched our restaurant apprenticeship programme in 65% ASK in 2017, we currently have 13 people who have come of area managers through this route. Our ambition is to increase the reach of the of positions filled come through apprenticeship programme and broaden it by establishing it in both Zizzi and Coco. We’re also excited by the possibilities of by internal candidates internal management supporting the UK Government’s traineeships – 12-week work programmes experience placements – as a further route into our business. We have a number of professional and leadership apprenticeship programmes running successfully for our central teams including the newly created ‘Women In Leadership’ programme. 04

Azzurri Group Limited Sustainable Dining Update Report 2021 OUR CUSTOMERS Balancing our menus The science is clear that a shift towards a more plant-based diet ‘Peas Please’ pledge for more veg can make a signi�icant positive contribution to the environment, Both Zizzi and ASK feature in the Top 15 in the latest Soil while also helping people to live healthier lifestyles. We are Association’s Out to Lunch league table, which assesses passionate about people and the planet, and that passion is something we share with our customers, who are already choosing restaurant chains on their food and service offering to children. As part of our commitment to improvement, Zizzi healthier options and more plant-based foods. We’re working has pledged to ensure that all children's meals include at hard to understand and embrace these changes so our restaurants least two portions of vegetables, both through crudités and a can continue to do what’s right while meeting our customers’ minimum of one veg portion in the main meal item. Through needs and exceeding their expectations. the pledge, we commit to aiming for continuous progress to increase the portions of veg we make available to children Success in this area starts with transparency: clear signposting, every year. We review this each year so that we can keep labelling and easily accessible information on allergens and the track of our initiatives and progress. Expanding the range of nutritional content of our dishes. Customers of ASK and Zizzi can healthier options in all our brands, as well as continuing to now use �ilters on our online menus to �ind non-gluten, reduce sugar, salt, saturated fat and calories in our dishes, in non-dairy, vegan or lighter options, and can download full Safety during the COVID-19 outbreak line with government ambitions. The wellbeing of our teams and our customers is our top priority. ‘allergen’ menus which provide detailed information on the ingredients and nutritional content of every dish. We have stringent policies and practices in place to maintain the highest standards of food safety and hygiene, and we have updated Supported by our work with our suppliers on responsible sourcing these to keep everybody safe in light of Covid-19. They include: (please see the Suppliers section on pages 6), we are also working to extend our information about allergens and ingredients, • Daily health declarations completed by our teams before arrival at work and to provide allergen and nutritional labelling on all Coco products and takeaway packaging in ASK and Zizzi by October 2021. • Secure guest registration (compliant with Test and Trace) As we develop our dishes and design our menus, our focus is on • Enhanced cleaning procedures providing healthier dishes and more choice. This includes a • Increased team hand-washing and hygiene larger range of dishes under 600 calories; more vegetarian and • Face coverings worn around our restaurants vegan options; and making our children’s menus healthier. • Adjusted menus to enable social distancing in kitchens Across the ASK children’s menu, for example, we’ve reduced • More space between tables, clear tabletops and disposable menus calories by 13%, salt by 12.8%, saturated fats by 15% and sugars • Cashless payment by 35% since 2018. Our plans going forward include extending our vegetarian and vegan offer and expanding the range of healthier options in all our brands, as well as continuing to Our benchmark remains for all our restaurants to achieve �ive reduce sugar, salt, saturated fat and calories in our dishes, in line stars through the Food Hygiene Rating (or equivalent) scheme. Since our change in ownership, all our sites have been re-registered with government ambitions. with local authorities under their new legal entities and they will undergo new food hygiene inspections in 2021. 05

Azzurri Group Limited Sustainable Dining Update Report 2021 OUR SUPPLIERS Business Code of Conduct We source ingredients from growers and suppliers all over the world and recognise our responsibility to support and protect the workers in those supply chains so that we continue to deliver safe, quality meals to our customers in a responsible manner. 100% 100% We ask all of our direct and indirect suppliers to commit themselves to our Business Code of Conduct, which is of eggs used to be from of chicken to be certi�ied consistent with internationally agreed conventions on RSPCA Assured under the BetterChicken workers’ rights and the Ethical Trading Initiative (ETI) Base free-range chickens by Commitment by the end Code and demonstrates our commitment to the letter and the end of 2021 of 2026 spirit of the Modern Slavery Act. Our Business Code of Conduct is available on our website. 100% 100% of applicable suppliers of applicable suppliers do not source meat from actively source meat from countries that permit animals kept on assured the routine use of farms prophylactic antibiotics Working with our supply chain partners Farm-to-fork traceability and working with suppliers who have high ethical standards are fundamental to our business, and we know how important they are to our customers and people. In 2018 we introduced a new system called NT Assure which is enabling us to monitor, manage and work with our suppliers 100% 100% much more effectively. of applicable suppliers of products containing of �ish or products palm oil certi�ied to RSPO We plan to use the information provided by the new system containing �ish MSC/ASC about our suppliers and key issues to develop new targets by certi�ied (or equivalent) summer 2021. In the meantime, all of our key targets will remain in place: 06

Azzurri Group Limited Sustainable Dining Update Report 2021 ENVIRONMENT & PLANET Reducing, repurposing and recycling waste Recycling food waste and redistributing surplus food Through our sustainable dining strategy, we’ve made solid For the last six years, we have been recycling food waste at most progress in managing our waste impacts from restaurants and ASK and Zizzi sites (those where we have direct control over ensured the subject is on the agenda of every member of staff. In waste arrangements). This consists mainly of any leftover food 2018, following a formal tender process, we appointed a new on customers’ plates, with some unavoidable waste from food waste and recycling partner in UKWSL (UK Waste Solutions) preparation. It is something we manage very closely and on with the aim of improving waste reduction and recycling at all which each site reports so we can ensure it is kept to a minimum. ASK and Zizzi sites where waste is directly under our control. This food waste is then collected by our contractors and taken to anaerobic digestion and composting plants, where the vast Over the three-year contract (which we’ve recently extended), majority is converted to energy, so it does not end up in land�ill. our overall targets included at least an 80% on-site recycling rate and diverting 99% of waste from land�ill. Although we’ve We also have arrangements in place, both directly and through fallen just short of our on-site recycling rate, we’ve achieved a lot our supply chain, to redistribute any surplus food to those who with a focused programme of staff engagement and education, need it most. Our partners include FareShare, who we’ve been auditing and analysing data to develop targeted site-level action working with since 2016, and The Felix Project, with whom Coco plans. These achievements were recognised in 2020 with an has been working in London since 2017. Both organisations play International CSR Excellence Award in the category of waste a vital role in rescuing surplus food from the food industry and management initiative in the retail, commercial and public delivering it to frontline charities and community organisations sector. – and we are glad to play our small part in the much-needed support they provide to local communities. To build on this success, our immediate plans include increasing REDUCE the scope of our UKWSL partnership to include Coco sites when Circa 7,000 bin collections they reopen. This will give us more consistency and a similar remove through MORE REUSE ability to reduce our waste impacts across the Coco estate. More than 57,000 meals created We’re also working to reduce the impacts of packaging across from surplus food via FareShare RECYCLE our brands. Our primary focus here has been Coco, as a 82% of all waste material quick-service brand offering food and drinks on the go. We had generated (by tonnage) set up a trial for 2020 to recycle coffee cups, pasta pots and RECOVER coffee grounds. Although this was delayed by the store closures 18% of waste material sent for energy recovery as a substitute for fossil fuels last year, it is something we will run and look to scale up quickly RESIDUAL as soon as possible. At the same time, we have a project team looking at packaging across the group, including ASK and Zizzi, Just over 600kg of waste material is sent to land�ill facilities from UK restaurants to see how we can optimise the formats and materials we use in takeaway packaging to reduce waste and maximise recycling rates. This is increasingly important with changing customer behaviour due to the ongoing COVID-related restrictions. We also know that the issue is a high priority for many of our customers and team members. 07

Azzurri Group Limited Sustainable Dining Update Report ‘21 ENVIRONMENT & PLANET Decarbonising our business We’ve also made steady progress throughout this strategy to reduce restaurant energy usage, one of the biggest direct environmental impacts of our operations. By the end of 2019 (and before restaurants were closed due to Covid-19) we had Our goal is for hospitality to achieve net zero reduced like-for-like electricity usage by 11% in ASK (compared faster, together. Carbon reduction and to 2013/14) and by 6.5% in Zizzi (compared to 2015/16). This sustainable business are increasingly was achieved mainly through strong monitoring and targeted restaurant engagement and through a programme of investment important to our customers so it’s vital that into energy-ef�icient equipment and appliances such as LED we act now. The window of opportunity to lighting. 6.5% 11% avert climate change disaster is closing fast reduced like-for-like reduced like-for-like and we must focus on reducing emissions and electricity usage electricity usage a path to net zero. Hospitality is committed to (compared to 2015/16) (compared to 2013/14) working together at pace to decarbonise its operations and support the Government’s Reducing emissions further and faster green industrial revolution. However, we also recognise the pressing need to step up our efforts and ensure we are playing our full part in tackling climate Mark Chapman, change and contributing to UK government ambitions of a green Founder & CEO of the Zero Carbon Forum economic recovery. That’s why in November 2020 we became one of 18 founding members of the UK hospitality sector Zero Carbon Forum, which has been established to decarbonise our sector together at pace. As part of this ambitious initiative, we will contribute to and publish, by September 2021, an industry-wide plan to achieve net zero carbon – ahead of the UK-hosted United Nations Climate Change Conference in November. We’re really excited about the collaborative opportunities that being part of this Forum will offer. Among the commitments we’ve made, we will measure and benchmark key emission areas such as energy, water, waste, supply chains and transport annually, and develop a company-wide action plan to implement best practices in emission reduction. The Forum is already working on reduction initiatives including collaborative renewable energy buying, electric vehicle charge points and carbon offsetting and, as members, we will be part of collaborative working groups looking at how we can implement these changes both together and in our individual businesses. 08

Azzurri Group Limited Sustainable Dining Update Report ‘21 OUR COMMUNITY The Mental Health Foundation When Zizzi’s 3-year partnership with Cancer Research UK came to an end in 2020, our focus was on �inding a new partner that would not just allow us to give something back, but that would also give our teams something tangible to talk about and get involved with. Our employees voted for The Mental Health Foundation, which works across the UK to enable people to lead mentally healthier lives. In addition to fundraising and volunteering opportunities, the partnership will also allow us to provide additional support to our teams. £1.3 million £2.5 million raised! raised! The future of sustainable dining at Azzurri We have big ambitions to build on this progress and there’s a lot Partnering with charities to positively impact our communities we want to achieve. Over the next few months, we’ll continue our work to develop and evolve our sustainable dining strategy, Thanks to the passion and enthusiasm of our teams, we have raised £2.5 million over the last ten years for ASK’s long-standing setting out our priorities, commitments and ambitions for the next �ive years. charity partner, Great Ormond Street Hospital. Zizzi also raised £1.3 million for its charity partner, Cancer Research, between Our strategy is purpose-led and based on insights from our 2017 and 2020. These are signi�icant achievements that have teams, customers and recognised external assessments and made valuable and lasting contributions to these vital causes. benchmarking. It is designed to weave a thread through our brands in a way that meaningfully engages our teams, customers and partners. Above all, we want to positively impact the big environmental and social issues of our day and grow this business with sustainability and responsibility at its core. We look forward to sharing more later this year. 09

Azzurri Group Limited Sustainable Dining Update Report ‘21 NOTES 10

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