Performance & ESG Reporting
We are committed to measuring and communicating how we are making an impact across our priority ESG issues in line with best practice guidance, from establishing policies with global reach to tailoring Key Performance Indicators (KPIs) to account for market-level differences.
Throughout our Purpose & Impact website we disclose how we are progressing across our ESG issues. Across many areas, we have set long-term goals to guide our progress, always considering how we can drive the greatest impact. We will continue adapting our reporting approach as reporting frameworks and our key stakeholders’ transparency expectations evolve over time.
While setting and working towards goals is a key part of our strategy, we know delivering long-term value for our stakeholders also requires establishing best practice policies and building responsible practices into our business that can’t be measured through goals alone. Please refer to each of our issue pages to learn more about the many ways in which we are working to fulfill our purpose – to feed and foster community.
- 2021–2022 Purpose & Impact Progress Summary (PDF – 5 MB)
- 2021 SASB Index (PDF – 143 KB)
- 2021–2022 Diversity, Equity & Inclusion Report (PDF – 32 MB)
- 2021 Diversity Snapshot (PDF – 903 KB)
- 2021 Climate Risk & Resiliency Summary (PDF – 3.82 MB)
Reporting Scope and Boundaries
We are committed to communicating our performance regularly and transparently. The Purpose & Impact section of our website is designed to be a living reporting platform where our stakeholders can track how we’re progressing each year. Each of our ESG issue pages includes the latest on our approach and performance. Unless otherwise stated, information and data across the Purpose & Impact webpages covers McDonald’s Corporation and its majority-owned subsidiaries worldwide during fiscal year 2021 (January 1 to December 31).
For our developmental license and affiliate markets (those not operated by the Company), we rely entirely on the accuracy of the performance data provided by their management. For more information on the Company’s structure and scope, please see the Company’s Annual Report. In addition, certain information in this report has been provided by third parties, including our suppliers. In these cases, we have relied on these third parties for accuracy and completeness.
Statements contained in these web pages about future developments and past occurrences are based on information and assumptions available as of the date of publication. While we are committed to providing timely updates on our website, the Company holds no obligation to update information or statements.
Our Franchisees and suppliers are independent business owners who make decisions for their own organizations while maintaining core standards for our brand and customer satisfaction. We cannot prescribe solutions for them. Rather, we work in collaboration to raise awareness and provide tools and opportunities to help them manage ESG issues. We work with suppliers to mutually set objectives and targets, monitor progress and engage collaboratively on shared innovation opportunities and challenges. Through self-managed excellence, suppliers are encouraged to identify and manage key ESG risks and opportunities within their own companies, and incorporate relevant goals into their business strategies.
Company employees and Company-owned restaurants are in our direct sphere of control. Therefore, many of the measures start with Company restaurants, with a plan to demonstrate success and expand measurement, as more independent Franchisees choose to implement sustainability initiatives.
- McDonald’s: Our global brand, unless specified otherwise.
- We/The Company: McDonald’s Corporation and its majority-owned subsidiaries worldwide.
- The System: The Company, its Franchisees and suppliers are collectively referred to as the “System”; also known as McDonald’s “three-legged stool.”
- Franchisees: Collective group of independent individuals and entities owning and operating McDonald’s restaurants under one of the following structures – conventional franchise, developmental license or affiliate; for more information, please see the Company’s Annual Report.
- McDonald’s restaurants/Restaurants: Includes restaurants owned by the Company and its Franchisees.
Below is a summary highlighting our progress on goals we’ve set publicly across our priority ESG issues. A select number of goals specific to our U.S. business are also included due to stakeholder interest in our market-level progress.
Given our presence in over 100 countries, unless specified, goals below reflect activity across multiple markets.
The below progress statements are in summary form. For more information on these statements, including definitions, exclusions and scope, please follow the accompanying links to each issue page.
Broiler Chicken Welfare Goal (Multiple Markets)
Our commitments to sourcing chickens raised with improved welfare outcomes will impact more than 70% of McDonald’s global chicken supply and we expect they will be fully implemented by the end of 2024.
We are on track to achieve all of our 2024 Broiler Welfare Commitments. For details on our latest progress for each of the eight commitments included in this goal, please see our 2022 Broiler Welfare Progress Update (PDF – 100 KB) or the Focus on Chicken section of our Animal Health & Welfare page.
Highlights of our progress to date include:
- 100% of our Canadian supply chain and approximately 60% of our U.S. supply chain facilities utilize Controlled Atmospheric Stunning (CAS), widely thought to be the most humane slaughter method; we’re on track to achieve 100% by the end of 2024.
- In partnership with global suppliers and an external third-party facilitator, we recently concluded an extensive, two-year commercial trials initiative to inform our key welfare indicator (KWI) target-setting efforts, and to study the impacts that certain production parameters – such as breed and stocking density – have on welfare, environmental and economic outcomes.
- Members of our Chicken Sustainability Advisory Council (CSAC) – as part of an Enrichments & Lighting Working Group – have defined outcome-based Enrichment & Lighting Guidelines for implementation by our suppliers.
- We recently advanced three broiler welfare-monitoring research projects into Phase 2 of our Sensing, Monitoring, Analysis, Reporting Technology (SMART) Broiler initiative. Throughout this phase of the initiative, McDonald’s will provide researchers with access to funds and facilities that allow them to continue developing technology that objectively and effectively monitors broiler welfare and behavior.
Cage-Free and Free-Range Eggs Goal (U.S.)
The U.S. has a goal of sourcing 100% cage-free eggs by the end of 2025.
As of the end of 2021, the U.S. egg supply chain is at more than 74% cage-free, and Canada now sources more than 57% cage-free eggs.
Canada and Arcos Dorados (the largest Independent McDonald’s Licensee, with operations in Latin America and the Caribbean) have also set goals of sourcing 100% cage-free eggs by the end of 2025.
France, Germany, Australia and the U.K. have each achieved a 100% cage-free egg supply chain. In 2021, all of the eggs used in our menu and as ingredients in McDonald’s Netherlands products were free-range.
Responsible Antibiotic Use in Chicken Supply Chain Goal (Multiple Markets)
Eliminate the use of antibiotics defined by the World Health Organization (WHO) as Highest Priority Critically Important Antibiotics (HPCIAs) to human medicine from all chicken served by the end of 2027.
HPCIA use has been eliminated in the following McDonald’s markets: Australia, Brazil, Canada, Europe, Japan, South Korea and the U.S. China is expected to comply before the end of 2027.
Responsible Antibiotic Use in Beef Supply Chain Goal (Multiple Markets)
In collaboration with our suppliers, producers and farmer partners, we will establish market-appropriate targets for use of medically important antibiotics – as defined by the WHO – in our beef supply chain.
Beef Antibiotic Monitoring Pilots have been conducted in Australia, New Zealand, France, Germany, Ireland, Poland, the U.K., Canada, the U.S. and Brazil. These 10 in-scope markets represented over 80% of our global beef supply chain as of the end of 2021. Starting in 2022, we will collaborate with industry leaders, academics, suppliers and experts to refine our measurement capabilities and plans to help shape a path forward. Following this engagement, the results from our pilots will be used to inform targets for responsible antibiotic use in our beef supply chain.
Pork Housing Goal (U.S.)
In the U.S., we're working with pork suppliers to phase out the use of gestation stalls (small, enclosed pens) for housing pregnant sows by the end of 2024.
In 2017, we achieved our milestone to source pork for our U.S. business only from producers who share our commitment to supporting the phase-out of gestation stalls for the purpose of housing pregnant sows in our supply chain.
As of the end of 2021, the U.S. pork supply chain is more than 61% of the way toward our target, which we are on track to achieve by the end of 2024. We expect to further reach 85–90% of our target by the end of 2022. Although progress and conversion rates have been delayed by the impacts of COVID-19 and the global outbreak of African Swine Fever, resulting in our extending this target by two years, we remain committed to working with our suppliers and agricultural partners to achieve our commitment. Our commitment is guided by the industry and American Association of Swine Veterinarians (AASV)-endorsed definition for group housing for pregnant sows.
For more information on each of the following goals, check out our Climate Action page.
Restaurants and Offices GHG Emissions Reduction Goal (Multiple Markets)
By the end of 2030, partner with Franchisees to reduce GHG emissions related to McDonald’s restaurants and offices by 36% from a 2015 base year.
As of the end of 2021, we have made a 2.9%1 reduction in our restaurants’ and offices’ absolute emissions from the 2015 baseline. This means we were 8.1%1 of the way to our target at the end of 2021. This reporting period saw a reopening of many of our restaurants and offices following temporary closures in 2020.
As all of the 2019–2022 transacted U.S. renewable energy projects come online over the next several years, the new clean energy generated across the grid is expected to be equivalent to over 10,000 U.S. restaurants’ worth of electricity and to contribute to a 27% reduction from our global 2015 baseline.
Supply Chain Emissions Intensity Reduction Goal (Multiple Markets)
By the end of 2030, reduce emissions intensity (per metric ton of food and packaging) by 31% across our supply chain from 2015 levels.
We continue to partner with our suppliers to make progress, and we are seeing an increase in the number of our suppliers setting climate targets and implementing strategies to reduce emissions intensity that are tailored to their own supply chains.
Eliminate Deforestation Goal (Multiple Markets)
Eliminate deforestation from our global supply chains by the end of 2030, building on the progress from our 2020 milestones in highest priority commodities and regions.
We define “eliminate deforestation” as our global pledge to tackle deforestation, and it refers to all the social and environmental criteria in our Commitment on Forests in agricultural and forestry supply chains. For McDonald’s, “supporting deforestation-free supply chains” refers to commodities that we source sustainably from high-priority regions or commodities sourced from low-priority regions. For more detailed definitions of these, and other relevant terms, see Definitions of Deforestation on our Nature, Forests & Water page.
When we set this commitment in 2015, we prioritized action and measurement with public milestones for 2020 for the products we use in the greatest volumes and with the potential to have the greatest impact on forests. As of year-end 2020, 99.6% of our beef, soy sourced for the feed of chicken used in McDonald’s products, palm oil, coffee and fiber used in guest packaging volumes support deforestation-free supply chains.
In 2021, 97.7% of these primary commodities continued to be sourced supporting deforestation-free supply chains in 2021. In 2021, we saw a slight decrease in this aggregate figure as compared to 2020. This is due in part to the fact that we have expanded our scope for the primary fiber-based guest packaging tracked in our target to include wood stirrers and cutlery as well as paper straws and lids. This scope expansion, in addition to non-reported data, which is conservatively assumed to be non-compliant, has contributed to a slight overall decrease in this figure.
See below for a breakdown of our progress on each individual priority commodity in 2021.
Beef – 97.2% of beef sourced for McDonald’s restaurants supported deforestation-free supply chains by the end of 2021.
Soy (for chicken feed) – 100% of soy sourced for the feed of chicken used in McDonald’s products supports deforestation-free supply chains globally. We support responsible soy production through the purchase of Round Table on Responsible Soy (RTRS) credits.
Palm oil – 100% of the palm oil sourced for McDonald’s restaurants and used as an ingredient in McDonald’s products supported the production of sustainable palm oil and deforestation-free supply chains in 2021. Our volumes of physical certified oils increased from 13% in 2016 to 78% in 2021.
Volume of McDonald’s palm oil by RSPO supply chain model:
- 78% physical RSPO certified, including:
- 0.04% Identity Preserved.
- 16.7% Segregated.
- 61.7% Mass Balance.
- 0.04% Identity Preserved.
- 22% RSPO Book and Claim Credits.
Coffee – 98.7% of coffee sourced for McDonald’s restaurants supported deforestation-free supply chains in 2021.
Fiber – 96.3% of primary fiber-based guest packaging sourced for McDonald’s restaurants supported deforestation-free supply chains in 2021.
For more information on each of the following goals, check out our Diversity, Equity & Inclusion page.
Equal Pay Goal (Multiple Markets)
McDonald’s commits to close pay gaps identified in annual equal pay analyses for women globally in Company-owned and operated markets and for underrepresented groups in the U.S. at the staff and Company-owned restaurant levels.
We took the necessary steps to close the gaps identified in our 2021 pay gap analysis, which included women at the staff and Company-owned restaurant levels in Company-owned and -operated markets. Please refer to our Diversity, Equity & Inclusion page for the results of our 2021 pay gap analysis.
Women in Leadership Goal (Multiple Markets)
By the end of 2025, McDonald’s expects to increase representation of women in leadership roles globally (Senior Director and above) to 45%, with an overall goal to reach gender parity globally in leadership roles (Senior Director and above) by the end of 2030.
As of the end of 2020, 37% of leadership roles (Senior Director and above) globally are held by women.
Underrepresented Groups in Leadership Goal (U.S.)
By the end of 2025, McDonald’s expects to increase representation of underrepresented groups in leadership roles (Senior Director and above) located in the U.S. to 35%.
As of the end of 2021, 30% of leadership roles (Senior Director and above) located in the U.S. are held by individuals in underrepresented groups.
Business Diversity Goal (U.S.)
McDonald’s expects to increase U.S. systemwide spend with diverse-owned suppliers to 25% by the end of 2025.
As of the end of 2021, McDonald’s achieved its goal of increasing U.S. systemwide spend with diverse-owned suppliers to 25%, reaching 25.4%.
We will continue to focus on our engagement with diverse-owned suppliers in support of our goal to attain 25% U.S. systemwide spend with diverse-owned suppliers at the end of 2025. We plan to continue to measure our progress annually.
Among other efforts, we aim to increase national investments in diverse-owned media and production companies and content creators for McDonald’s USA and its U.S. Franchisees to 15% by the end of 2024. As of the end of 2021, McDonald’s USA and its U.S. Franchisees increased such investments to 7.7%.
For a closer look at the percentage of U.S. systemwide spend and national investments across diversity categories, check out our 2021 Diversity Snapshot.
For more information on each of the following goals, check out our Nutrition & Marketing Practices page.
Offer Balanced Meals Goal (Multiple Markets)
By the end of 2022, ensure 50% or more of the Happy Meal Bundle Offerings listed on menus in each market meet McDonald’s Global Happy Meal Nutrition Criteria of less than or equal to: 600 calories, 10% of calories from saturated fat, 650 mg of sodium, 10% of calories from added sugar.
8 of the 20 major markets met the 2022 goal in 2019, up from 3 markets in 2018.
An average of 43% of Happy Meal Bundles met the Nutrition Criteria across the 20 major markets in 2019.
Simplify Ingredients Goal (Multiple Markets)
By the end of 2022, remove artificial flavors and added colors from artificial sources in Happy Meals and reduce artificial preservatives where feasible in Happy Meals without sacrificing the safety, taste, quality or value of our food.
12 of the 20 major markets met the 2022 goal in early 2020.
Be Transparent With Happy Meal Nutrition Information Goal (Multiple Markets)
By the end of 2022, ensure that nutrition information for Happy Meals is available and accessible through all owned websites and mobile apps used for ordering where they exist.
12 of the 20 major markets met the 2022 goal in Q2 2020, up from 6 markets in Q1 2019.
Market Responsibly Goal (Multiple Markets)
By the end of 2022, all Happy Meal Bundles advertised to children will meet McDonald’s Global Happy Meal Nutrition Criteria and continue to meet any existing applicable local/regional advertising pledges.
16 of the 20 major markets met the 2022 goal in 2019.
Additionally, 100% of ads shown to children in 2019 featured water, milk or juice as the Happy Meal beverage, and fruits, vegetables or dairy as a Happy Meal side.
Leverage Innovative Marketing Goal (Multiple Markets)
By the end of 2022, leverage innovative marketing to help increase purchase of foods and beverages that contain recommended food groups in Happy Meals.
16 of the 20 major markets sold an increased share of Happy Meal items containing recommended food groups in 2019 as compared to 2018.
For more information on each of the following goals, check out our Packaging, Toys & Waste page.
Guest Packaging Sourcing Goal (Multiple Markets)
Source 100% of our primary guest packaging from renewable, recycled or certified materials by the end of 2025.
By the end of 2021, we were approximately 82.7% of the way toward our goal to source primary guest packaging from renewable, recycled or certified sources by the end of 2025.
Approximately 96.8%1 of our primary fiber-based guest packaging was sourced from recycled or certified sources.
Added Fluorinated Compounds Goal (Multiple Markets)
Ensure all primary guest packaging is free from added fluorinated compounds by the end of 2025.
By the end of 2020, less than 7.5% of our guest packaging items still contained added fluorinated compounds. For these items, we continue our work to find and apply alternative coating materials that offer the right grease-resistant barriers.
McDonald's packaging materials comply with state, federal and national-level laws and regulations, including the U.S. Food and Drug Administration (FDA) and the EU, and verify through chemical testing.
Guest Recycling Goal (Multiple Markets)
By the end of 2025, we will implement global and local solutions across our business to advance the reduction, reuse or recycling of guest packaging, and help create demand for recycled materials.
In 2018, McDonald’s set the global public commitment to recycle guest packaging in 100% of McDonald’s restaurants by the end of 2025. By the end of 2020, over 25% of restaurants in our 30 largest markets offered customers the opportunity to recycle packaging.
Across the globe, waste and recycling infrastructure differs heavily. While our current recycling goal is relevant and feasible for markets with advanced infrastructure, it does not drive impactful change in markets where infrastructure is still developing.
That is why in 2021, we revised the global recycling goal “requiring recycling of at least one item in 100% of all restaurants” to a broader goal that allows market flexibility based on local infrastructure. This shift will enable markets to drive change that is most impactful in their geography.
By the end of 2021, in our top 35 markets, on average 35% of restaurants offered guests the opportunity to recycle packaging items. In these restaurants, guest packaging is collected in customer-facing recycling bins, or collected for sorting and recycling back of house or off-site.
In regions where infrastructure is more robust, we see greater progress toward our goal. For example, on average, approximately 78% of our restaurants in McDonald’s largest European markets are already providing recycling for guest packaging.
Plastic Reduction in Happy Meal Toys Goal (Multiple Markets)
Drastically reduce plastics in Happy Meal Toys around the globe and transition to more sustainable materials by the end of 2025.
Achieving this goal will result in an approximately 90% reduction in the virgin fossil fuel-based plastic used to make Happy Meal toys.
Since 2018, we have reduced virgin fossil fuel-based plastic in Happy Meal toys by 24.4% globally and we continue to work on sourcing materials used in Happy Meal toys from renewable, recycled or certified sources.
For more information on the following goal, check out our Community Impact page.
Youth Opportunity Goal (Multiple Markets)
By 2025, reduce barriers to employment for 2 million young people.
Since July 2018, approximately 1.3 million young people participated in training programs and/or have been hired in McDonald’s Company-owned or participating Franchisee restaurants.
For more information on the above goals and progress statements, including definitions, exclusions and scope, please follow the accompanying links to each issue page.