2023
ESG REPORT
Strutworthy steps toward a more confident, inclusive and sustainable world
OUR OUR OUR OUR OUR
CEO Letter l About European Wax Center | 03 |
Our Approach to ESG l About This Report | |
Diversity, Equity and Inclusion l Workforce Development | 07 |
Associate Engagement l Associate Wellness | |
A Superior Guest Experience l Health and Safety | 17 |
Listening to Our Guests l Our Products | |
Our Franchisees l Community Engagement | 22 |
EWC's Partner Ecosystem | |
Assessing Our Environmental Impact | 28 |
Sustainability Efforts | |
Corporate Governance and ESG Oversight l Business Ethics and Compliance l Data Privacy and Security | 32 |
Centers and Facilities l Vendor and Supply Chain Management | |
SASB Index | 38 |
On cover: Jalisa Estrada, Peer Trainer and Wax Specialist, New Braunfels, TX.
Forward-Looking Statements
Statements in this report and on our website regarding our ESG initiatives and strategy, including with respect to our DEI efforts and programs, future financial and operating results, outlook, growth, plans and business strategies, including statements regarding our products and services, workforce and executive leadership, franchisees, governance, data security and environmental impact as a result of our initiatives and programs, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on our historical performance and plans, estimates and expectations as of January 6, 2024, unless otherwise stated. Forward-looking statements are not guarantees that our future results, plans, intentions or expectations expressed or implied will be achieved. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, many of which are out of our control, which may cause our actual financial or operating results, levels of activity or the timing of events to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include execution of our business plan and our success in realizing the benefits expected to result from our initiatives and programs, and the other factors set forth in Part I, "Item 1A. Risk Factors" in our 2023 Annual Report on Form 10-K, as may be amended or updated by our Quarterly Reports on Form 10-Q or our other filings with the Securities and Exchange Commission. Except as required by law, we specifically disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this report, even if its estimates change, and you should not rely on statements contained herein as representing our views as of any date subsequent to the date of this report.
INTRODUCTION | OUR PEOPLE | OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | OUR COMPANY | APPENDIX |
CEO Letter I About European Wax Center l Our Approach to ESG l About This Report
Letter From CEO David Willis
As we mark the 20th anniversary of European Wax Center (EWC) in 2024, I find myself reflecting on the tremendous growth and transformation our Company has seen since its founding. I have been blessed to be part of this category-creating brand for 10 years - from family-owned and -operated to financial sponsorship and now as a publicly traded enterprise with over 1,000 centers across the U.S.
In my time with EWC, I have worn a variety of financial, operational and other leadership hats, partnered with new franchisees, onboarded new associates and discussed our compelling story with investors and analysts. While there were inevitably some areas of change and evolution when I became Chief Executive Officer in 2023, one incredibly easy and seamless part of that transition was a continued and unequivocal commitment to our core values:
- We do the right thing
- We care about each other
- We delight our guests
- We have fun while being awesome
We ground our decision-making in these values, and our associates live them each day. They are the foundation of our long-standing success as a company. It is from these values that we have grown into the largest and fastest- growing provider of out-of-home waxing services, with an unmatched in-center experience for our guests, a superior business model for our franchise partners and a high-trust, engaging environment for our best-in-class associates where they can be their authentic selves.
Our values also inform our approach to managing the environmental, social and governance (ESG) issues that are critical to delivering long-term value to our stakeholders. I'm excited to share this 2023 ESG Report, which illustrates how our associates and other key partners brought our values to life and the incredible results that come from integrating them into our business.
You'll see in the pages that follow how we've continued to develop effective strategies and programs that support our performance on the ESG-related topics that most closely align with and influence our business strategies. I am excited to share a "behind the scenes" look at initiatives our innovative teams have put into practice around making our workplace safe and welcoming, helping our franchise partners grow their business with new tools and resources, creating an inclusive environment for our loyal guests and giving back to philanthropic causes that are close
to our hearts.
We also remained committed to being good stewards of our planet by incorporating environmental considerations into our operations and value chain management, as well
as through ongoing measurement of our own impact with our second annual assessment of energy use, greenhouse gas (GHG) emissions and water withdrawal across our corporate facilities. None of these efforts would be possible without our foundation of good corporate governance, and we are pleased to share through this report how we approach critical topics like risk management and data privacy and security.
A lot of this work would feel right all on its own - but we have demonstrated that it is also intricately tied to creating a thriving, resilient business that delivers value for all stakeholders. I appreciate your interest in this snapshot of our current location on our journey of continual ESG improvement - more to come!
David L. Willis
Chief Executive Officer and Director
Our two decades of growth have been a testament to our commitment to our core values. From a family business to a nationwide leader, our journey has been guided by accountability and innovation. We continue to look for ways to advance our corporate responsibility initiatives while having fun and being awesome.
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INTRODUCTION | OUR PEOPLE | OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | OUR COMPANY | APPENDIX |
CEO Letter I About European Wax Center l Our Approach to ESG l About This Report
About European Wax Center
EWC is the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States. In 2023, we provided more than 23 million waxing services through our network of more than 1,000 locations across 45 states.
We offer guests high-quality, hygienic waxing services for all genders and body types. We administer services ranging from full-body to facial hair and brow waxing by licensed, EWC-trained estheticians. Our curated line of skincare and post- waxing treatments includes proprietary EWC products designed with input from our guests and estheticians.
We strive to deliver every guest a superior experience. Our goal is for all guests to walk out of our centers strutting with confidence. A steadfast focus on providing consistent, high-quality and exceptional services has been a guiding principle for the entirety of our 20-year history. To deliver a best-in-class guest experience, we recognize the need to build a thriving business that is sustainable, safe, accessible and welcoming. We take bold steps every day to keep EWC growing, evolving and maintaining its position as an industry-leadingout-of-home waxing brand.
Key 2023 Operating Highlights
Financial and Operations Results1
1,044 | 1,038 | 6 | 45 | |||
EWC locations | franchised centers | corporate-owned | states in the U.S. | |||
centers2 | with centers | |||||
100 | $955M | $221M | ~220 | |||
net new centers | in system-wide sales | in Company revenue | associates at our | |||
opened in 2023 | headquarters and | |||||
corporate-owned centers |
Notable Recognitions
Our Values
Our core values are at the heart of everything we do, from how we treat our guests and each other
About Our Franchisees
We work hard to do the right thing and do it well, from how we serve our guests and support our associates to how we formulate our products and operate our business. We're not the only ones who appreciate the work we do. The following are some of the awards and recognitions we received in 2023.
Our products and services: | Our business: |
to how we operate our business in an ethical and responsible manner.
We do the right thing
We delight our guests
We care about each other
We have fun while being awesome
Of the more than 1,000 European Wax Center locations around the U.S., 99% are franchisee-owned and operated. Franchisees have access to the European Wax Center name, as well as to our proprietary products, programs, methods and other intellectual property. In turn, we support our franchisees in a variety of ways, from associate training and marketing support to exclusive access to EWC-branded retail products. Though we are one brand, our franchisees operate independently; we don't control their day-to-day operations, and neither they nor their associates are our employees.
- NewBeauty Beauty Awards 2023 EWC TREAT® Ingrown Hair Serum
- Men's Health Grooming Awards 2023 EWC Brazilian P
-
Bustle Beauty Awards 2023
EWC TREAT® Face & Body Detoxifying Mask - ELLE Editor's Choice Best Ingrown Hair Serum for Waxers EWC TREAT® Ingrown Hair Serum
- NYLON's 2023 Beauty Hit List Award EWC TREAT® Face & Body Exfoliating Gel
- Certified™ by Great Place to Work®
- Entrepreneur's 2023 Franchise 500® ranking #1 in Waxing / #32 Overall
- Named one of Entrepreneur's 2023 Fastest- Growing Franchises - Ranking #30
- Named one of Fortune's Best Workplaces in Texas™ (listed among small-medium businesses)
1 As of January 6, 2024. 2 Reflects corporate-owned footprint as of the close of our 2023 fiscal year. Does not reflect the sale of one corporate-owned center in March 2024. | 4 |
INTRODUCTION | OUR PEOPLE | OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | OUR COMPANY | APPENDIX |
CEO Letter I About European Wax Center l Our Approach to ESG l About This Report
Our Approach to ESG
We are committed to managing the ESG issues that are most meaningful to our business and to our stakeholders, with our core values as a guide.
Our commitment to ESG goes beyond this report, it is rooted in our core values and everything that we do.
EWC's Highest Priority ESG Issues
Associate Health and Safety
Business Ethics and Compliance
Corporate Governance
Data Security and Privacy
Diversity, Equity and Inclusion
Human Capital Investment
and Management
Product and Service Quality and Safety
We began formalizing our approach to ESG in 2021, identifying the issues most relevant to our business and mission and developing strategies to manage them. Since then, we have created a range of programs and initiatives to further those efforts. We've communicated our progress on ESG issues to our associates, guests, investors and other stakeholders through annual reporting.
This report provides updates on how we continued to strengthen and enhance our ESG-related programs, measurement and transparency in 2023. We've done so in ways that advance our mission, reinforce our brand and support business growth. Our evolving approach to diversity, equity and inclusion (DE&I) helps us cultivate an engaging, welcoming and inclusive environment for our guests and associates. Efforts in areas such as recyclable packaging, inclusive marketing and accessible centers create more opportunities to delight our guests and do the right thing. And the continuous evolution of our approach to cybersecurity and data privacy is keeping our Company - and our guests - safer and more protected.
The programs, policies and governance structures outlined in this report serve as the foundation of our approach
to ESG. They help us continue to deliver an exceptional experience for our guests, a supportive and inclusive environment for our associates and a strong, sustainable and thriving business for our shareholders.
Stakeholder Engagement and ESG Materiality
We maintain ongoing engagement with key internal and external stakeholders - including associates, investors, customers, suppliers, community members and policymakers - to help inform and refine our management of ESG-related issues. We also closely monitor industry trends and the regulatory environment to ensure our programs and reporting reflect leading practice and prepare us for compliance with emerging regulations.
Our most recent materiality3 assessment, conducted in 2022, identified 15 key ESG topics and seven priority issues critical for EWC's long-term business performance and ability to create value. The materiality assessment provides a framework to inform our ESG strategy, goals and reporting efforts and supports ongoing dialogue with stakeholders related to our ESG program. In reviewing our 2023 business priorities, feedback from stakeholders and current regulatory and industry landscape, we found that the priority issues identified in our 2022 assessment are still those most relevant to EWC.
By continuously engaging with our stakeholders we are able to continue refining our ESG efforts. In 2023, we remained steadfast in our commitment to advancing our DE&I, workforce engagement, sustainability and cybersecurity strategies, all led and executed by our associates and their passion for doing the right thing.
Gavin O'Connor
Chief Administrative Officer
3 It is important to note that the term "material" and variations thereof refer to materiality in the context of ESG strategies, activities, progress and reporting, and are different than the concept of | 5 |
materiality used in securities or other applicable law. Issues deemed to be material topics for purposes of this report may not be considered material for purposes of federal securities laws. | |
INTRODUCTION | OUR PEOPLE | OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | OUR COMPANY | APPENDIX |
CEO Letter I About European Wax Center l Our Approach to ESG l About This Report
About This Report
This report provides discussion and performance metrics related to our management of our priority ESG topic areas, organized into five key themes:
OUR PEOPLE
How we build a diverse team of associates who care about each other and deliver an amazing experience for our guests.
OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | ||
Our focus on creating a safe, | How we engage with the people and | Our focus on building a sustainable | ||
welcoming environment in our centers | organizations where we work and live. | business while being good stewards | ||
and delivering superior products and | of the planet. | |||
services. | ||||
OUR COMPANY
The systems we have in place to maintain reliable business operations and a high standard of ethics and integrity.
This report's disclosures cover strategies, programs and performance for fiscal year 2023 (December 31, 2022, through January 6, 2024), unless otherwise stated. This report is prepared in alignment with the International Sustainability Standards Board's (ISSB) Sustainability Accounting Standards Board (SASB) standards for the Professional & Commercial Services industry. See the Appendixfor further details.
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INTRODUCTION | OUR PEOPLE | OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | OUR COMPANY | APPENDIX |
OUR
PEOPLE
We depend on our associates to bring passion to their work every day, embodying our core values and delivering exceptional experiences for our guests. To do that, our associates rely on us to provide a welcoming, inclusive and empowering environment that supports them as professionals and
as people. Our associates are the heart of our company. Each day, we work to build a company where people truly want to be, stay and grow.
In This Section:
- Diversity, Equity and Inclusion
- Workforce Development
- Associate Engagement
- Associate Wellness
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INTRODUCTION | OUR PEOPLE | OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | OUR COMPANY | APPENDIX |
Diversity, Equity and Inclusion l Workforce Development l Associate Engagement l Associate Wellness
Diversity, Equity and Inclusion
A Focus on Psychological Safety
Psychological safety - the freedom to take risks, express ideas and concerns, speak up with questions and admit mistakes without fear of negative consequences - is an important element of a truly inclusive
We continually work to make EWC a place where everyone feels safe to be their authentic selves. Our focus on diversity, equity and inclusion (DE&I) is at the core of our efforts to build a supportive environment that empowers our associates and creates the best possible experience for all our guests.
Since its establishment in 2020, our DE&I Council has worked to formalize our strategy for engaging with these critical - and often complex - issues. With the Council's guidance, we developed a three-pronged approach focused on education, allyship and programming to guide our forward-looking DE&I efforts. Our director of DE&I, a corporate-level position, manages our overall DE&I strategy, working to ensure that DE&I values are embedded in every part of the business.
2023 DE&I Highlights
In 2023, we continued to strengthen our enterprise-wide approach to DE&I by developing new tools, establishing frameworks and collecting baseline metrics. Key highlights include:
- Establishing a DE&I Council charter.
- Launching new DE&I training for leaders4 and associates.
- Organizing events and programming that create opportunities for our associates to engage on DE&I issues.
- Engaging outside consultants to identify opportunities to improve disability inclusion in the guest experience.
- Beginning to develop a strategy for enhancing diversity among our vendors and suppliers.
environment. We cover this essential concept in our leadership training sessions to help set a tone of psychological safety from the top down across the Company.
Twice a year, we conduct a psychological safety pulse check in which we ask our associates to rate their current level of psychological safety on a scale of 1 (lowest) to 5 (highest). All leaders receive the results of the pulse check and our Manager Workbook to guide their response. The workbook gives leaders a range of actions they can take to demonstrate engagement, show understanding, be inclusive and avoid appearing inflexible - all of which help to foster a sense of psychological safety among their teams.
81%
99%
of corporate headquarters associates agree:5
- People here are treated fairly, regardless of race or gender.
- Leaders at EWC encourage diversity.
- My supervisor is committed to and supports DE&I.
of associates at our corporate headquarters gave a psychological safety rating of 4 or 5 in the most recent pulse check.
4 Leaders are associates and executives with one or more direct reports, and include supervisors, department heads, team leaders and members of the Company's executive leadership team.
5 Based on results from our 2023 Associate Engagement Survey. | 8 |
INTRODUCTION | OUR PEOPLE | OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | OUR COMPANY | APPENDIX |
Diversity, Equity and Inclusion l Workforce Development l Associate Engagement l Associate Wellness
DE&I Council
We established our DE&I Council in 2020 to shape our ongoing DE&I strategy, support its implementation and measure its progress.
Led by EWC's director of DE&I and with senior sponsorship from a member of our executive leadership team, the Council comprises executives and leaders from across the organization and meets monthly and drives initiatives across three pillars:
EDUCATION
MENTORING
ALLYSHIP
These primary focus areas guide the Council's efforts pertaining to DE&I-focused networking groups and programming.
DE&I COUNCIL CHARTER
In 2023, we published a DE&I Council charter that formalizes the Council's purpose and responsibilities, including:
Assessing and assisting | Providing input on |
with the implementation of | institutional policies to |
the DE&I strategy. | address DE&I issues. |
Engaging with associates | Disseminating information | Supporting |
to inform decision-making. | about ongoing professional | DE&I-focused events. |
development in DE&I. |
Identifying opportunities | Co-creating internal learning |
for the organization to | |
opportunities to deepen | |
promote equity and | |
associates' personal | |
inclusion among its broader | |
understanding of DE&I. | |
communities. | |
The DE&I Council is committed to fostering a diverse, equitable and inclusive environment that values and embraces the different ethnicities, races, cultures, ages, abilities, gender identities and systems of belief that comprise the European Wax Center workforce. Grounded in our values, our goal is to ensure that we create awareness, community and safe spaces for all members of our team.
From the DE&I Council charter
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INTRODUCTION | OUR PEOPLE | OUR GUESTS | OUR COMMUNITIES | OUR ENVIRONMENT | OUR COMPANY | APPENDIX |
Diversity, Equity and Inclusion l Workforce Development l Associate Engagement l Associate Wellness
DE&I Training and Education
We offer training and education programs to ensure our associates understand our DE&I strategy, as well as to impart the skills and knowledge necessary to advance our efforts. These programs take many different forms, from in-person training sessions led by our director of DE&I to webinars hosted by outside subject matter experts.
The Power of Allyship
It takes more than training and education to create an inclusive environment. With our Diversity Allies program, associates volunteer to bolster our DE&I efforts through one-on-one interactions with co-
DE&I Leadership Training: Fostering an Inclusive Environment
In 2023, EWC began hosting a series of mandatory DE&I leadership trainings for all EWC leaders.6 The series, Fostering an Inclusive Environment, took place over three live sessions attended by nearly 50 EWC leaders. Through LinkedIn Learning, virtual makeup sessions were offered to leaders who couldn't participate in the live sessions. Those virtual sessions are also now part of the required onboarding trainings that new leaders must complete upon joining EWC.
Topics covered in 2023 included:
ENCOURAGING AUTHENTICITY
DEMONSTRATING EMPATHY AND COMPASSION
PSYCHOLOGICAL SAFETY
To ensure the trainings were impactful and to inform potential future DE&I-related learning and development content, we engaged with participants following course completion to gauge their understanding of the information and to collect feedback. We also provided them with the Manager Workbook, which includes team exercises to help build psychological safety and encourage authenticity. It also includes a guide for team agreements, which helps teams establish their shared approach to communication, boundaries, workday availability and disagreement resolution.
100%
satisfaction among survey respondents following our Demonstrating Empathy and Compassion leadership session (92% very satisfied, 8% satisfied)
Gender Diversity Basics Training
We are committed to creating an environment, both in our centers and corporate headquarters, that is welcoming to everybody, regardless of their background or how they identify. To support this, EWC corporate associates attended a mandatory live webinar facilitated by an outside consultant covering important topics related to gender diversity, such as the use of pronouns. Afterward, we adapted the webinar to focus on the guest experience in our centers. That version is available through our learning management system as
an e-learning module for our in-center associate training program, and we encourage our franchise partners to share this training with their team members.
I appreciate the takeaways that we can add immediately to our day-to-day."
-DE&I Leadership Training Participant
DE&I Training for Corporate Associates and Franchisees
In 2023, we added a DE&I component to our franchisee training program to establish what DE&I means to EWC and how our approach to DE&I comes alive in our brand. All franchisees and new corporate associates are required to participate in the program, which includes live training sessions held quarterly as an introduction to the EWC brand.
See the Workforce Developmentsection for more information on our associate onboarding process.
workers. The program aims to provide a safe space for associates to talk about any topic, seek guidance and feel heard.
Our Diversity Allies spread awareness of the program by sharing their personal stories in our company- wide newsletter, which includes their contact information to encourage further dialogue. Diversity Allies are also easily identified by special graphics in their corporate email signatures and on their virtual meeting backgrounds.
Everyone who volunteers as a Diversity Ally undergoes a one-hour training session and attends quarterly committee meetings.
For me, DE&I embodies so much of what EWC strives to do as a company. Our focus on DE&I speaks directly to our core values and makes our company more successful by encouraging everyone to focus not just on our business but on each other.
Abby Napolitano
Director, Distribution and Logistics
EWC Diversity Ally
6 Corporate center associate center managers+ and corporate headquarters associate managers+. | 10 |
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Disclaimer
European Wax Center Inc. published this content on 18 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 June 2024 03:33:10 UTC.