Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)
• Corporate Governance
• Food Safety
• Employee Well-being

Environmental Achievements

• Not disclosed

Social Achievements

• Supported the Japan Olympics Committee from 2005 through 2008; promoted Balanced Active Lifestyles initiatives relating to balanced diet and sports; launched "always music" initiative promoting a music-filled lifestyle; engaged in social responsibility programs with Ronald McDonald House Charities Japan.
• Increased transaction counts by 12.2% year on year.

Governance Achievements

• Established a Compliance Committee to enhance corporate ethics and risk management; developed a Compliance Program and Hotline.

Climate Goals & Targets

Environmental Challenges

• Shrinking eating-out industry; unresolved issues surrounding crude oil prices and food safety; fluctuations in ingredient prices; currency risk due to imported ingredients; risks associated with weather and natural disasters; strengthening legal regulations; potential food safety crises (BSE, avian influenza); competition from other fast-food chains and convenience stores; risks related to personal data protection.

Mitigation Strategies

• Focusing management resources on the hamburger restaurant business; implementing three strategic initiatives: "marketing leadership," "operational excellence," and "further development of organizational capacity and people excellence"; implementing a "Value Strategy" to offer better value and service to customers; accelerating the installation of a high-speed cooking system; airing TV commercials focusing on food quality; refurbishing restaurants; extending restaurant operating hours; implementing food safety measures based on HACCP; taking out indemnity insurance; analyzing business within the IEO market framework; managing customer personal data in accordance with the Personal Data Protection Law.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Social support
• Environment
• Labor
• Eating habits
• Food safety

Environmental Achievements

• Energy conservation and recycling initiatives
• Remodel of 240 restaurants to improve atmosphere

Social Achievements

• Participation in ‘World Children’s Day’ charity campaign
• Support for the ‘Y.E.S. program’ (youth employment support)
• Support of dietary education
• Investment in human resource development (Hamburger University)
• Expansion of e-marketing promotions (8 million club members)

Governance Achievements

• Resolution of two anonymous associations with franchisees

Climate Goals & Targets

Environmental Challenges

• Franchise restaurants deviating from hygiene standards
• Fluctuations in ingredient prices
• Currency risk (yen fluctuations)
• Risks associated with weather and natural disasters
• Legal regulations (food hygiene, environmental protection)
• Food safety risks (food poisoning)
• General food safety crises (BSE, avian influenza)
• Competition (other fast food chains, convenience stores)
• Personal data protection

Mitigation Strategies

• Implementation of 4-point plan to prioritize food safety (enhanced training, improved communication, better operational skills, comprehensive food management)
• Favorable exchange contracts with import agencies to mitigate currency risk
• Periodic independent inspections based on HACCP
• Measures for prompt medical support and damage containment in case of food safety incidents
• Indemnity insurance for food safety incidents

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Introduction of new menu items (McGriddle, Mega Mac, Mega Teriyaki), enhancement of 100 yen Mac menu, McFlurry enhancement, expansion of 24-hour operating restaurants (1224 as of June 30), remodel of restaurants for comfortable atmosphere (57 as of June 30). Sales of existing restaurants increased by 11.1% (17 consecutive months of positive growth), systemwide sales reached 240.232 billion yen (13.1% growth). Guest count increased by 10.9%.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reliance on rented property (95% of restaurants are leased), fluctuations in ingredient prices, currency risk (due to imported ingredients), risks associated with weather and natural disasters, legal regulations (food hygiene, environmental protection), food safety risks, general food safety crises (BSE, avian influenza), competition, personal data protection.

Mitigation Strategies

• Payment of security deposits and security money (65.983 billion yen), efforts to avoid currency risk through exchange contracts, periodic independent inspections based on HACCP, measures for prompt medical support and damage containment in case of mishap, indemnity insurance, analysis of business within the IEO market, strict adherence to Personal Data Protection Law.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed LED lighting at restaurants to reduce CO2 emission

Social Achievements

• Deployment of 'total non-smoking campaign' at 298 restaurants in Kanagawa prefecture
• Support to 'Donald McDonald House'
• Overseas training system for restaurant salaried managers

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Deteriorating corporate performance and economy
• Low personal consumption
• Need to strategically close underperforming restaurants

Mitigation Strategies

• Consistent customer expansion strategy
• Strategic closure of 433 restaurants to improve profit and brand image
• Building new restaurants with superior profitability

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Customer Focus
• Food Safety
• Quality
• Cleanliness
• Hospitality
• CSR
• Community Engagement
• Employee Investment

Social Achievements

• Improved customer satisfaction (KODO scores increased)
• Renovated 211 stores in the first half of 2016 (planned 500-600 for the year)
• Strengthened hospitality services
• Improved cleanliness of dining spaces
• Invested in store personnel

Climate Goals & Targets

Environmental Challenges

• Negative existing store sales in 2015 (-27.5%)

Mitigation Strategies

• Customer-focused actions (menu improvements, value offers, app launch)
• Accelerated store investment (renovations, dual point service, drive-thru expansion)
• Regionally tailored business models
• Improved cost and resource efficiency

Supply Chain Management

Climate-Related Risks & Opportunities