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Sustainability and Social Responsibility
Boaz Trading PLC integrates environmental stewardship and community impact into its core operations, aligning with Ethiopia’s development goals and global sustainability standards. Below is an expanded breakdown of initiatives, costs, and measurable outcomes:
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### 1. Biodegradable Packaging Initiative
Partnership: Green Ethiopia (2.5M ETB annual contract).
Materials:
- Containers: Sugarcane pulp and bamboo fiber (compostable in 90 days).
- Utensils: Cornstarch-based forks/spoons.
- Bags: Recycled paper with soy-based ink.
Implementation:
- Phase 1 (2024): Roll out across Addis Ababa franchises, replacing 100% of plastic.
- Phase 2 (2025): Expand to tier-2 cities (Bahir Dar, Hawassa).
Environmental Impact:
| Metric | Target | Progress (Year 1) |
|---------------------------|---------------------|----------------------------|
| Plastic Waste Reduction | 40% | 12 tons avoided annually. |
| Carbon Footprint | 30% lower vs. plastic | 8 tons CO2 saved annually. |
| Composting Rate | 70% of packaging | Partner with Addis Ababa City Council for municipal composting. |
Cost-Benefit Analysis:
- Higher Costs: Biodegradable packaging costs 20% more than plastic (4.17 ETB/unit vs. 3.33 ETB).
- Offset by:
- Brand Loyalty: 15% of customers choose Boaz for eco-friendly practices (survey data).
- Regulatory Prep: Aligns with Ethiopia’s proposed 2025 single-use plastic ban.
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### 2. School Meal Program: 2% of Profits
Objective: Combat child hunger and improve educational outcomes in underserved communities.
Partners:
- NGOs: Save the Children Ethiopia, local schools.
- Government: Ethiopian Ministry of Education.
Implementation:
- Year 1 (2024):
- Allocation: 2% of net profits (~138,000 ETB if Year 1 profit = 6.9M ETB).
- Impact: Provide daily meals to 500 students in 3 Addis Ababa schools.
- Year 3 (2026):
- Scale: 500,000 ETB/year, feeding 2,000+ students across 10 schools.
Menu: Nutrient-rich meals with teff porridge, lentils, and vegetables (50 ETB/meal).
Metrics:
| Indicator | Target | Measurement |
|---------------------------|---------------------|--------------------------------|
| Student Attendance | 20% increase | School enrollment reports. |
| Academic Performance | 15% improvement | Grade averages (pre/post). |
| Community Engagement | 80% parent approval | Annual surveys. |
Strategic Benefits:
- Brand Equity: Positions Boaz as a socially responsible leader, enhancing customer loyalty.
- Employee Morale: Staff volunteer opportunities (e.g., meal packing events).
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### 3. Additional Sustainability Initiatives
A. Energy Efficiency:
- Solar Panels: Install at 50% of franchises by 2025, reducing grid dependence by 20%.
- IoT Kitchen Tech: Cut energy use by 15% (50,000 ETB savings/month).
B. Water Conservation:
- Low-Flow Faucets: Reduce water consumption by 25% (1,200 liters saved/day per franchise).
C. Waste Management:
- Oil Recycling: Partner with biodiesel companies to repurpose used cooking oil.
- Composting: 70% of food scraps diverted from landfills via city partnerships.
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### 4. Alignment with Global Goals
- UN SDGs:
- SDG 12 (Responsible Consumption): Biodegradable packaging.
- SDG 2 (Zero Hunger): School meal program.
- SDG 4 (Quality Education): Improved student attendance/performance.
- Certifications: Pursue B Corp certification by 2026 to validate ethical practices.
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### 5. Challenges & Mitigation
| Challenge | Mitigation Strategy |
|----------------------------|-----------------------------------------------------|
| Higher Packaging Costs | Negotiate bulk discounts with Green Ethiopia. |
| Profit Volatility | Guarantee minimum 1M ETB/year donation, regardless of profit. |
| Composting Infrastructure | Lobby city councils for expanded facilities. |
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### 6. Reporting & Transparency
- Annual Sustainability Report: Detail waste reduction, meals provided, and energy savings.
- Third-Party Audits: Partner with Ernst & Young Ethiopia to verify claims.
- Stakeholder Updates: Share progress via app notifications and in-store displays.
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Conclusion
Boaz Trading PLC’s sustainability and social responsibility initiatives are not peripheral but central to its business model. By investing 2.5M ETB annually in eco-packaging and committing 2% of profits to school meals, the franchise builds long-term brand equity while addressing Ethiopia’s environmental and social challenges. These efforts directly support its 20% ROI target by fostering customer loyalty, regulatory resilience, and operational efficiency.
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*Aligned with Ethiopia’s Climate-Resilient Green Economy Strategy (CRGE) and UN SDGs.*
*Prepared for Investor Review | Q4 2023*