SUPPORTING STATEMENT: Dear fellow shareholders,
In the “Corporate Stewardship” section of JACK’s “Integrity Playbook,” the company recognizes that it has, “responsibilities to people and communities who are impacted by our actions, whether they have chosen to do business with us or not. In fact,” it continues, “our responsibilities to our shareholders, employees, guests and business partners include the duty to be a good steward of our communities, our environment, and of people and things that are impacted by our business.”
But to date, JACK’s social and environmental efforts have been sporadic and limited.
Indeed, JACK seems to lack policies with measurable goals addressing even highly prevalent social and environmental issues.
Take climate change, for example. Other restaurants publish emissions data and reduction targets. As just one example, McDonald’s has joined the United Nations Race to Zero campaign, committing to put it “on the path to net zero emissions by 2050” and has extensive disclosures regarding its GHG emissions (and reductions) for Scopes 1, 2, and 3 emissions. (See bit.ly/mcd-emissions, for example.)
But not JACK: the company hasn’t disclosed any GHG emissions data or reduction targets.
This is despite the fact that addressing policy issues like climate change impacts the issues themselves and that failing to do so can pose material risks that jeopardize the ability to achieve durable financial returns.
As Glass Lewis concludes, “insufficient oversight of material environmental and social issues can present direct legal, financial, regulatory and reputational risks that could serve to harm shareholder interests.”
JACK itself recognizes risks associated with failing to adequately address significant environmental matters. Its recent 10-Ks warn shareholders, for example, that competitors’ “environmental-focused claims may hurt our competitive positioning as existing or potential customers could seek out other dining options.” They also caution, “Our sales and the revenue that we receive from franchisees could be impacted by changes in customer preferences…in response to environmental…concerns,” and, “If we fail to adapt to changes in customer preferences and trends, we may lose customers and our sales and the rents, royalties, and marketing fees we receive from franchisees may deteriorate.”
Looking ahead, JACK acknowledges it can improve. Its Integrity Playbook says, “We can and should (and will) pay more attention to these issues as our business grows.”
We agree the company can do better and are pleased to hear it will pay more attention to environmental issues. But real corporate stewardship requires meaningful action, not vague aspirational statements. And we believe a reasonable next step would be to determine and disclose its GHG emissions and set targets for reducing them.
We hope you’ll agree and support this proposal. Thank you.

Filed by the Accountability Board.