Arcos Dorados Holdings Inc.
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:272,695 tCO2e (2021)
ESG Focus Areas
- Climate Change
Environmental Achievements
- Reduced absolute GHG emissions (scopes 1 and 2) from 272,695 tCO2e in 2021 to target levels by 2025, 2026, and 2030. Reduced GHG emissions intensity (scope 3) from 9.63 tCO2e per tonne of food and packaging in 2021 to target levels by 2025, 2026, and 2030.
Climate Goals & Targets
Long-term Goals:
- Reduce absolute GHG emissions (scope 1 and 2) to be equal to or lower than 174,525 tCO2e by year-end 2030.
- Reduce GHG emissions intensity (scope 3) to be equal to or lower than 6.65 tCO2e per tonne of food and packaging by year-end 2030.
Medium-term Goals:
- Reduce absolute GHG emissions (scope 1 and 2) to be equal to or lower than 218,156 tCO2e by year-end 2026.
- Reduce GHG emissions intensity (scope 3) to be equal to or lower than 8.48 tCO2e per tonne of food and packaging by year-end 2026.
Short-term Goals:
- Reduce absolute GHG emissions (scope 1 and 2) to be equal to or lower than 231,791 tCO2e by year-end 2025.
- Reduce GHG emissions intensity (scope 3) to be equal to or lower than 8.67 tCO2e per tonne of food and packaging by year-end 2025.
Environmental Challenges
- Reducing GHG emissions from its supply chain (Scope 3 emissions represent approximately 93.17% of Arcos Dorados’ total emissions).
Mitigation Strategies
- Working with suppliers to reduce GHG emissions; evaluating the adoption of sustainability policies and practices; collecting data about their initiatives; potentially replacing suppliers that do not achieve the aspired sustainability metrics; evaluating joint initiatives to incentivize and help small- and medium-sized suppliers implement new ways to reduce their GHG emissions; devising strategies to reduce commuting and improve remote working infrastructure.
Supply Chain Management
Responsible Procurement
- Working with suppliers to reduce GHG emissions; evaluating the adoption of sustainability policies and practices; collecting data about their initiatives; potentially replacing suppliers that do not achieve the aspired sustainability metrics; evaluating joint initiatives to incentivize and help small- and medium-sized suppliers implement new ways to reduce their GHG emissions; Deforestation-free beef procurement policy.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GHG Protocol
Third-party Assurance: Ernst & Young (audit of GHG emissions inventory by South Pole)
UN Sustainable Development Goals
- SDG 7
- SDG 9
- SDG 12