Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Stewardship
• Eco-footprint
• Employer of Choice
• Sharing Brand

Environmental Achievements

• Launched energy-efficient restaurant in Achim, near Bremen, using renewable energy sources.
• Sourcing 25% of electricity from renewable sources in 2011, aiming for 100% by 2014.
• Reduced packaging weight (though slightly higher in 2010 than 2009, lower than 2008).
• Increased share of recycled materials in packaging.
• Implemented energy-saving technologies in new and remodeled restaurants (LED lighting, LOV fryers).

Social Achievements

• Introduced training programs for young people from lower-ranked secondary schools.
• Offered a combined work/study program leading to a Bachelor of Arts degree.
• Maintained high trainee retention rate (over 70%).
• Signed the Diversity Charter.
• Established a Confidential Contact Center to address employee concerns.

Governance Achievements

• Created a special unit for corporate responsibility.
• Established a CR Expert Council with external experts.
• Implemented the McDonald’s management promise (Führungsversprechen).

Climate Goals & Targets

Environmental Challenges

• Reducing energy consumption while maintaining high kitchen throughput.
• Balancing the need for effective packaging with sustainability goals.
• Addressing public preconceptions about McDonald's and sustainability.
• Attracting and retaining qualified employees in a competitive market.
• Managing waste and litter around restaurants.

Mitigation Strategies

• Implementing energy management systems and providing energy-saving training.
• Reducing packaging weight and increasing recycled content.
• Publishing a corporate responsibility report and engaging in open dialogue with stakeholders.
• Offering various training programs and career development opportunities.
• Launching anti-littering campaigns and partnering with local governments.

Supply Chain Management

Supplier Audits: 100% of suppliers audited

Responsible Procurement

• McDonald’s Code of Conduct for Suppliers
• Supplier Workplace Accountability program
• McDonald’s Agricultural Assurance Program (MAAP)
• Flagship Farms project
• Sustainable Land Management Commitment (SLMC)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3, GRI Food Processing Sector Supplement

Certifications: EMAS III, ISO 14001

Sustainable Products & Innovation

• McCafé
• Salads
• Veggie burger
• McWraps

Awards & Recognition

• GreenLight Award (2005)
• Top German Employer 2011 (since 2004)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Beef Sustainability
• Packaging and Recycling
• Commitment to Families
• Youth Opportunity
• Forest Conservation
• Diversity
• Animal Health and Welfare
• Supporting Families and Farmers

Environmental Achievements

• 50% of McDonald's guest packaging comes from renewable, recycled, or certified sources.
• 64% of McDonald’s fiber-based packaging comes from certified or recycled sources.
• Reduced waste by 30% in the decade following a partnership with EDF.
• Eliminated more than 300 million pounds of packaging.

Social Achievements

• More than half of Happy Meals served in the U.S. included water, milk, or juice as the beverage of choice.
• Distributed close to 450 million books globally through Happy Meal Readers.
• RMHC saved families over $880M in meal/lodging expenses in 2017.
• Over 2,800 McDonald’s UK employees completed sustainability training to become Planet Champions.

Governance Achievements

• Established a Scale for Good leadership team and cross-functional working groups.
• Conducted a comprehensive materiality assessment in 2014.
• Published Global Beef Sustainability Report.

Climate Goals & Targets

Environmental Challenges

• Recycling infrastructure, regulations, and consumer behaviors vary globally.
• Difficulty in measuring waste volume due to variability in industry tracking methods.
• Independent Franchisees' decisions on sustainability initiatives.
• Global supply chain complexity and varying practices across different regions.

Mitigation Strategies

• Collaborating with venues to create more recycling opportunities.
• Working with the Sustainable Packaging Coalition and How2Recycle.
• Providing tools and resources to drive Franchisee engagement.
• Partnering with industry leaders, NGOs, and experts to develop and implement sustainable practices.

Supply Chain Management

Supplier Audits: Annual audits of 100% of beef processors; 3,733 facilities participating in the Supplier Workplace Accountability (SWA) program in 2017.

Responsible Procurement

• Supplier Code of Conduct
• Sustainable sourcing requirements for key ingredients (beef, chicken, coffee, fish, fiber, palm oil)
• Global Sustainable Sourcing Guide

Climate-Related Risks & Opportunities

Physical Risks

• Erratic weather patterns impacting food production

Transition Risks

• Regulatory changes
• Market shifts towards sustainability

Opportunities

• Development of energy-efficient products and practices
• Renewable energy adoption

Reporting Standards

Frameworks Used: GRI, UN SDGs

Certifications: MSC, FSC, PEFC

UN Sustainable Development Goals

• SDG 2
• SDG 8
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Scale for Good initiatives mapped against all 17 SDGs; specific goals aligned with SDGs 2, 8, 12, 13, 15, and 17.

Sustainable Products & Innovation

• Recyclable and compostable cup development (NextGen Cup Consortium)

Awards & Recognition

• 2017 RSPCA Assured’s Food Service Award
• Compassion in World Farming 2017 commendation
• Henry Spira Corporate Progress Award 2016
• Good Egg Award 2016
• Best Marketing Award 2016
• 2017 SmartWay Excellence Award

Environmental Metrics

ESG Focus Areas

• Climate Action
• Beef Sustainability
• Packaging and Recycling
• Commitment to Families
• Youth Opportunity
• Forest Conservation
• Diversity
• Animal Health and Welfare
• Supporting Families and Farmers

Environmental Achievements

• In 2018, McDonald's became the first restaurant company in the world to set a science-based target to significantly reduce greenhouse gas emissions.
• Reduced packaging by eliminating foam in all centrally managed guest packaging.
• Increased sustainably sourced coffee to 57%.

Social Achievements

• Launched Youth Opportunity initiative with a goal to reduce barriers to employment for two million young people by 2025.
• Increased access to education for tens of thousands of employees through Archways to Opportunity.
• Donated over 630,000 pounds of food to charities in the U.S. through the McDonald's Food Donation Program.

Governance Achievements

• Established a Scale for Good leadership team and cross-functional working groups to oversee sustainability initiatives.
• Conducted a comprehensive materiality assessment to identify and prioritize key ESG issues.
• Implemented new training for company-owned restaurant General Managers and staff employees on harassment and discrimination.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on food production and water resources.
• Plastic pollution from packaging.
• Deforestation in supply chains.
• Youth unemployment.
• Ensuring ethical sourcing and labor practices across a global supply chain.

Mitigation Strategies

• Setting science-based targets to reduce greenhouse gas emissions.
• Investing in renewable energy and energy-efficient technologies.
• Developing sustainable packaging and recycling initiatives.
• Collaborating with suppliers and NGOs to improve sourcing practices.
• Implementing pre-employment training and job readiness programs for young people.
• Developing and implementing a Supplier Workplace Accountability (SWA) program.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Sourcing Guide
• Supplier Workplace Accountability (SWA) program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts towards sustainable products

Opportunities

• Development of energy-efficient products and operations
• Investing in renewable energy

Reporting Standards

Frameworks Used: CDP

Certifications: LEED, MSC, Rainforest Alliance, UTZ, Fair Trade

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

McDonald's initiatives contribute to these goals through sustainable sourcing, waste reduction, renewable energy, youth employment, community investment, and responsible supply chain management.

Sustainable Products & Innovation

• Sustainable packaging
• Energy-efficient restaurant designs

Awards & Recognition

• Science Based Targets initiative approval
• CDP Supplier Engagement leader board
• Illinois Green Emerald Award
• RSPCA Assured’s Food Service Award

Environmental Metrics

ESG Focus Areas

• Climate Action
• Packaging and Waste
• Sustainable Agriculture
• Nutrition & Marketing Practices
• Youth Employability
• Diversity, Equity & Inclusion

Environmental Achievements

• 8.5% reduction in absolute emissions of restaurants and offices from 2015 baseline
• 5.9% decrease in supply chain emissions intensity from 2015 baseline
• Substantially achieved responsible sourcing goals for beef, chicken (soy for feed), coffee, palm oil, fish, and fiber-based guest packaging
• 99.6% of primary fiber-based guest packaging sourced from recycled or certified sources and supported deforestation-free supply chains
• 98.7% of fish sourced for Filet-O-Fish from verified sustainable sources

Social Achievements

• Launched Archways to Opportunity, increasing access to education for over 65,000 people since 2015
• Approximately 1,000,000 young people participated in training programs and/or were hired since July 2018
• Over 2.5 billion Happy Meal items sold since 2018 contained fruits, vegetables, low-fat dairy, water, lean protein, or whole grains
• In 8 of 20 major markets, at least 50% of Happy Meal Bundle Offerings met McDonald’s Global Happy Meal Nutrition Criteria as of 2019
• 12 out of 20 major markets removed artificial flavors and added colors from artificial sources in Happy Meals as of early 2020
• Family Friendly Spaces program in China improved worker satisfaction by 321% and worker retention by 39%

Governance Achievements

• Half of Board members are women or self-identify as members of historically underrepresented racial or ethnic groups
• Established a newly created role of Executive Vice President and Chief Global Impact Officer
• Incorporated quantitative metrics related to human capital management into annual incentive compensation awards for CEO and Executive Vice Presidents

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on supply chains and food security
• Deforestation in supply chains
• Plastic pollution
• Youth unemployment
• Inequity and lack of diversity
• COVID-19 pandemic disruptions

Mitigation Strategies

• Science-based targets to reduce GHG emissions
• Commitment to eliminate deforestation from global supply chain by 2030
• Sustainable packaging initiatives and recycling programs
• Youth Opportunity program to reduce barriers to employment
• Diversity, Equity & Inclusion strategy to increase representation and inclusion
• Support for Franchisees and communities during COVID-19 pandemic

Supply Chain Management

Supplier Audits: Annual third-party audits for food safety and social compliance

Responsible Procurement

• McDonald’s Supplier Code of Conduct
• Supplier Workplace Accountability program
• Sustainable sourcing requirements for key commodities

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts towards sustainability

Opportunities

• Renewable energy investments
• Development of energy-efficient products and operations

Reporting Standards

Frameworks Used: SASB, CDP, TCFD, UN SDGs

Certifications: LEED Platinum

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 14: Life Below Water
• Goal 15: Life On Land
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Various initiatives contribute to these goals through sustainable sourcing, community support, employee development, and environmental protection

Sustainable Products & Innovation

• Net-zero energy designed restaurant
• Sustainable packaging materials
• Reduced sugar, low-fat chocolate milk

Awards & Recognition

• SmartWay Excellence Award
• Human Rights Campaign Foundation’s Corporate Equality Index (100 score)

Environmental Metrics

ESG Focus Areas

• Energy Management
• Greenhouse Gas (GHG) Emissions
• Water Management
• Food & Packaging Waste Management
• Food Safety
• Nutritional Content
• Labor Practices
• Supply Chain Management & Food Sourcing

Environmental Achievements

• Achieved a 2.9% reduction in absolute GHG emissions of restaurants and offices compared to the 2015 baseline.
• Achieved a 7.8% decrease in the emissions intensity of the supply chain from the 2015 baseline.
• Contracted for eight renewable energy projects, expected to contribute to a 27% GHG reduction from the 2015 baseline and prevent approximately 3,200,000 metric tons of CO2e emissions each year.
• In Europe, over 6,000 restaurants use renewable electricity across 11 markets, with many at or close to 100% renewable electricity.

Social Achievements

• Raised hourly wages for more than 36,500 employees at Company-owned U.S. restaurants by an average of 10% in 2021, investing $70 million in restaurant wages.
• More than 74% of eggs sourced in the U.S. are cage-free.
• France, Germany, Australia, and the U.K. have achieved 100% cage-free egg supply chains.

Governance Achievements

• Introduced Global Pay Principles in 2019 to ensure good pay practices are consistently implemented for all Company employees.
• Developed and implemented science- and risk-based food safety and quality standards.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied, not explicitly stated)
• Data collection and coordination across the McDonald’s System

Mitigation Strategies

• Continuous improvement in data collection and coordination.
• Working with suppliers on responsible sourcing commitments.

Supply Chain Management

Responsible Procurement

• Global Sustainable Sourcing Specifications
• Direct collaboration on sustainable initiatives

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Climate Action
• Packaging, Toys & Waste
• Nature, Forests & Water
• Food Quality & Sourcing
• Animal Health & Welfare and Responsible Antibiotic Use
• Jobs, Inclusion & Empowerment
• Diversity, Equity & Inclusion
• Talent & Benefits
• Community Connection
• Human Rights

Environmental Achievements

• 6% reduction in Scope 1 GHG emissions from 2018
• 38% reduction in Scope 2 GHG emissions from 2018
• 4% reduction in Scope 3 GHG emissions from 2018
• 99.1% of primary commodities sourced supporting deforestation-free supply chains
• 86.7% of primary guest packaging sourced from renewable, recycled, or certified materials
• 63.7% reduction in virgin fossil fuel-based plastic in Happy Meal toys

Social Achievements

• Achieved Youth Opportunity goal ahead of schedule (2.2 million young people)
• 44% of leadership roles globally held by women
• 33% of leadership roles in the U.S. held by individuals from Underrepresented Groups
• Substantially attained equal pay, with plans to close small remaining gaps in 2024
• Over $200 million awarded in tuition assistance through Archways to Opportunity

Governance Achievements

• Over half of the Board comprised of women or racially/ethnically diverse Directors
• Annual incentive plan includes ESG metrics for executives

Climate Goals & Targets

Environmental Challenges

• Climate change risks to food supply resilience and communities
• Systemic challenges related to recycling infrastructure and demand for recycled materials
• Limited data on antibiotic use in the beef industry
• Barriers to economic opportunities for diverse Franchisees

Mitigation Strategies

• Implementing renewable energy and energy efficiency measures in restaurants
• Engaging suppliers to set emissions reduction targets
• Collaborating with industry, governments, and NGOs on climate action
• Investing in regenerative agriculture practices
• Working with suppliers to collect antibiotic use data
• Implementing strategies to support diverse Franchisee representation

Supply Chain Management

Supplier Audits: Over 1,800 third-party audits performed in 2023

Responsible Procurement

• Supplier Code of Conduct, sustainable sourcing policies, engagement on sustainability initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and practices

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Clear polypropylene beverage cups sourced from recycled and bio-based materials

Awards & Recognition

• Not disclosed