Organization: Dunkin' Brands

Year: 2019

Whereas:

Whereas, Dunkin Brands Corporate Social Responsibility (CSR) states the company is "committed to showing constant improvement in the area of corporate social responsibility. This involves continuous improvement in four areas that govern CSR strategy: Our Guests, Our Planet, Our People and Our Neighborhoods" yet shareholders have yet to see how executives at our company are being evaluated per these commitments.

Whereas, many multi-national companies including Intel, Alcoa, Pepsi, Mead Johnson and Walt Disney have integrated sustainability metrics into their executive pay incentive plans.

Whereas, a May 2014 report by Ceres, a sustainability advocacy non-profit, found that a growing number of companies are incorporating sustainability performance into executive compensation packages. According to the Ceres' report, 24% of companies now link executive compensation to sustainability performance, up from 15% in 2012.

Whereas, BlackRock, the largest asset manager in the world, recently said, "Environmental, social, and governance (ESG) factors relevant to a company's business can provide essential insights into management effectiveness and thus a company's long-term prospects."

Whereas, publicly traded company Royal DSM, tied 50 percent of short term executives' bonuses to sustainability goals reducing greenhouse gas emissions, using more sustainable products and services in the supply chain and reducing water usage, beginning these initiatives in 2010 for over 400 company executives. CEO of Royal DSM North American stated, "We see that this is a means to create a sustainable competitive advantage."

Whereas, according to a recent article in the Harvard business review, a strong commitment to sustainability can boost a company's reputation with customers and employees, generate political capital with government regulators, create profitable new products and services to address the urgent global needs such as those associated with scarce water supplies, hunger, and greenhouse gas emissions and some sustainability investments can pay for themselves through reduced energy consumption and waste over the long term.

Whereas, Alcoa the third largest aluminum producer in the world, has made 20 percent of executive compensation tied to safety, environmental stewardship, voluntary GHG reductions and energy efficiency, according to a 2015 Ceres report.

Whereas, the latest corporate sustainability report (CSR) made available by Dunkin to shareholders to supply data on corporate sustainable responsibility is dated 2015-2016.

Resolved:

RESOLVED: Shareholders of Dunkin Brands request the Board to issue a report at reasonable cost, omitting confidential information, by October 1, 2019 assessing the feasibility of integrating sustainability metrics into the performance quotas of senior executives of Dunkin Brands Group Inc. compensation plans.

Supporting Statement:

Supporting Statement: Proponents believe the report could reduce risks associated with employee turnover, accountability and general ESG or corporate sustainability negligence. Certain metrics that could be quantified into this report could include workplace and executive level diversity, greenhouse gas reduction goals, and the utilization of recycled and/or compostable supply chain inputs.