Goal Performance & Reporting

Jump To: Latest Reporting Resources | Reporting Scope | Key Definitions | A Summary of Progress on Our Goals | Animal Health & Welfare and Responsible Antibiotic Use | Climate Action | Nature, Forests & Water | Diversity, Equity & Inclusion | Packaging, Toys & Waste | Community Impact & Philanthropy | Past Reports

We are committed to measuring and communicating impact across our priority environmental and social 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 our foundational approach to environmental and social issues. Across many areas, we have set long-term goals to guide our progress. Please refer to each of our issue pages to learn more about the many ways we are working to fulfill our purpose – to feed and foster community.

Latest Reporting Resources 

• 2023–2024 Purpose & Impact Report and SASB Index (PDF – 6 MB)
• 2023-2024 Purpose & Impact Progress Summary (PDF – 8.74 MB)
• Climate Resiliency Summary (PDF – 1.3 MB)

Jump to our past performance reports listed below.

Reporting Scope

The Purpose & Impact section of our website provides an overview of our impact approach across our four Impact Areas. For our recent progress and actions that took place in 2023, please refer to our latest Purpose & Impact Report (listed above) or see below for progress made against our commitments.

Unless otherwise stated, information and data across the Purpose & Impact pages covers McDonald’s Corporation and its majority-owned subsidiaries worldwide during fiscal year 2023 (January 1 to December 31). For more information on the Company’s structure, please see the Company’s Annual Report.

Company employees and Company-owned and operated restaurants are in our direct sphere of control. Therefore, unless otherwise stated, information and data across the Purpose & Impact pages do not cover Franchisees, who may independently choose to implement or report on their own impact initiatives. Our Franchisees and suppliers are independent business owners who make decisions for their own organizations while maintaining core standards for our brand. Through self-managed excellence, suppliers are encouraged to identify and manage key environmental and social risks and opportunities within their own companies.

For certain information and data across the Purpose & Impact pages, we rely on information provided by third parties, including Franchisees and suppliers. In these cases, we have relied on these third parties for accuracy and completeness.

Statements contained in these pages about future developments and past occurrences are based on information and assumptions available as of the date of publication. The Company holds no obligation to update information or statements.

Key Definitions

Unless specified otherwise, the following definitions apply throughout the Purpose & Impact section of our website and the Purpose & Impact Report:

• McDonald’s: Our global brand, unless specified otherwise.
  
  
• We/Our/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 on the Company’s structure, please see the Company’s Annual Report.
  
  
• McDonald’s restaurants/Restaurants: Includes restaurants owned or operated by the Company and its Franchisees.

A Summary of Progress on Our Goals

Below is a summary of our progress against global goals we’ve set publicly across our priority Impact Areas. Select goals specific to our U.S. business are also included due to stakeholder interest.

The progress statements are in summary form. For more information on each goal statement, including definitions, scope and exclusions, please follow the accompanying links to each issue page or refer to our latest Purpose & Impact Report (PDF – 6 MB).

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Animal Health & Welfare and Responsible Antibiotic Use

For more information on each of the following goals, check out our Animal Health & Welfare and Responsible Antibiotic Use pages.

Broiler Welfare Goal (Multiple Markets)

We are committed to sourcing chickens raised with improved welfare outcomes. To achieve this, we have outlined eight specific commitments for our in-scope markets, which are expected to be fully implemented by the end of 2024.¹

Progress

We are on track to achieve our 2024 Broiler Welfare Commitments across in-scope markets. As of the end of 2023, in-scope markets represented more than 58% of our global chicken supply.

These commitments apply to chicken raised for sale at McDonald’s restaurants in Australia, Canada, France, Germany, Italy, Ireland, the Netherlands, Poland, South Korea, Spain, Switzerland, the U.K. and the U.S.

Cage-Free Eggs Goal (U.S.) 

The U.S. has a goal of sourcing 100% cage-free eggs by the end of 2025.

Progress

As of the end of 2023, McDonald’s USA has achieved its commitment of sourcing 100% cage-free eggs for items served on its breakfast menus by 2025 – two years ahead of schedule.

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 in in-scope markets by the end of 2027.²

Progress

Across the in-scope markets, HPCIA use has been eliminated in Australia, Brazil, Canada, Europe, Japan, South Korea and the U.S., with China 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, and we will partner in the collection of antibiotic use data and measurement of progress on responsible use associated with the beef industry globally.

Progress                                                                          

We collaborate with suppliers to collect antibiotic use data through independent third parties, to help drive positive behavioral change and transparency. During 2023, we worked with the Company’s supply chain to identify and enhance access to data on antibiotics use. For example, in the U.S. and Canada, we plan to launch a new data interface for certain suppliers. We account for the needs of our suppliers and their animals by exploring the drivers of antibiotic use, such as disease pressures, weather impacts or other external factors. Understanding these nuances helps ensure we promote responsible use, while continuing to positively impact animal health and welfare.

More information on market-specific targets for the responsible use of antibiotics in our beef supply chain can be found on page 7 of our Antibiotic Policy for Our Beef Supply Chain (PDF – 463KB). 

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.

Progress

As of the end of 2023, more than 96% of our pork purchased in the U.S. comes from suppliers that have phased out the use of gestation stalls for housing confirmed pregnant sows.

This marks continued significant progress on our journey to maximize the time pregnant sows spend in a group environment. Our commitment is guided by the industry and American Association of Swine Veterinarians (AASV)-endorsed definition for group housing for pregnant sows. In 2023, McDonald’s bought more than 230 million pounds of pork from producers that house pregnant sows in groups.

We remain committed to this journey and are on track to achieve our target by the end of 2024.

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2050 Net Zero Target (Multiple Markets)

In 2018, we set targets, approved by the Science Based Targets initiative (SBTi), to reduce greenhouse gas (GHG) emissions in line with a 2˚C warming scenario. Since then, as science has evolved, so have our targets.

By the end of 2030, from a 2018 base year, McDonald’s commits to reduce:

• Absolute Scope 1 and 2 GHG emissions by 50.4% from Company-owned and operated restaurants and offices.
  
  
• Absolute Scope 3 energy and industrial GHG emissions by 50.4% from Franchisee and Company-owned and operated restaurants, and the facility, logistics and plastic packaging emissions in our supply chain.
  
  
• Absolute Scope 3 Forest, Land and Agriculture (FLAG) GHG emissions by 16% and to maintain no deforestation across its primary deforestation-linked commodities.

Progress

In 2023, the SBTi validated our global 2050 net zero emissions reduction target and our adjusted 2030 global emissions target, aligned with the latest guidance to help keep global temperature rises below 1.5°C.³

Guided by our climate risk and opportunities insights and driven by our goals, during 2023, we pursued various actions to help reduce emissions and move our net zero strategy forward – from enhancing how we design and power restaurants to encouraging more sustainable farming techniques.

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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 continue our focus on supporting deforestation-free supply chains for our primary commodities: beef, soy (for chicken feed), palm oil, coffee and fiber (used in primary guest packaging).

Progress

In aggregate, 99.1% of these primary commodities continued to be sourced supporting deforestation-free supply chains in 2023.⁴

Percentage of Commodities Sourced in 2023 Supporting Deforestation-Free Supply Chains

• Beef 98.8%: The Company requires that all beef sourced for McDonald’s products meets the requirements of our Deforestation-Free Beef Procurement Policy (PDF – 214 KB), with more detailed requirements for high priority regions.⁵
  
  
• Soy (for chicken feed) 100%: The Company requires all soy for chicken feed for McDonald’s products to be sourced from low priority regions or, if from high priority regions, to support responsible soy production. We support responsible soy production through the purchase of Round Table on Responsible Soy (RTRS) credits to cover estimated soy in feed for chicken outside of the U.S. and Canada.⁶
  
  
• Palm oil 100%: The Company requires palm oil sourced for McDonald’s restaurants or as an ingredient in McDonald’s products to be covered by Roundtable on Sustainable Palm Oil (RSPO) certification.⁷
  
  
• Coffee 99.9%: The Company requires coffee sourced for McDonald’s restaurants from Honduras, Indonesia and Vietnam to be Rainforest Alliance Certified™⁸ and for ground and whole bean coffee from other countries to be sourced from Rainforest Alliance, Fairtrade International certified or from a McCafé Sustainability Improvement Platform (SIP) program.
  
  
• Fiber-based primary guest packaging 98.6%: The Company requires that fiber for primary guest packaging at McDonald’s restaurants be sourced from Forest Stewardship Council® (FSC®) chain of custody certification or the Programme for the Endorsement of Forest Certification (PEFC) for deforestation.⁹
   

Read about this in more detail in our Consumer Goods Forum’s Positive Coalition 2023 Report (PDF – 174 KB).

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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 Groups¹¹ in the U.S. at Staff and Company-owned restaurant levels.

Progress

Results of the 2023 pay gap analysis demonstrated continuous annual progress: women globally in Company-owned and operated markets were paid, on average, 99.96 cents on the dollar in base pay of what men were paid for similar work. Further, there was no base pay gap disfavoring Underrepresented Groups¹¹ in the U.S. These results indicate the Company substantially attained equal pay, and in 2024, intends to close the small gaps identified in line with our commitment.¹³

Guest Packaging Sourcing Goal (Multiple Markets)

We aim to source 100% of our primary guest packaging¹⁶ from renewable, recycled or certified materials by the end of 2025.

Progress

Percentage of Primary Guest Packaging Sourced From Renewable, Recycled or Certified Sources by Material

By the end of 2023, we were 86.7% of the way toward our goal. Approximately 97.9% of our primary fiber-based guest packaging was sourced from recycled or certified sources in 2023. Non-structural components of packaging¹⁷ are out of scope.

Added Fluorinated Compounds Goal (Multiple Markets)

Ensure all primary guest packaging is free from intentionally added fluorinated compounds by the end of 2025.¹⁸

Progress

By the end of 2023, 99.5% of our guest packaging items did not contain intentionally added fluorinated compounds. For the remaining items, we continue to find and apply alternative coating materials that offer the right grease-resistant barriers. In the U.S., we have removed all intentionally added fluorinated compounds from our guest packaging.

McDonald’s guest packaging materials comply with applicable law and are verified through chemical testing.

Guest Recycling Goal (Multiple Markets)

We aim to implement global and local solutions across our business to advance the reduction, reuse, composting and/or recycling of guest packaging, and help create demand for recycled materials by the end of 2025.

Youth Opportunity Goal (Multiple Markets)

By the end of 2025, reduce barriers to employment for 2 million young people.

Progress

As of December 2023, we have achieved our Youth Opportunity goal ahead of our target year. To date, 2.2 million young people have participated in training programs and/or been hired in McDonald’s Company-owned and operated or participating Franchisee restaurants.²¹

We recognize many populations face barriers to employment around the world, including but not limited to youth, refugees, senior citizens and people with disabilities. As we look to the future, we will assess potential new opportunities to build on the opportunity employment progress we have made so far.

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Past Reports

2022 Performance Reporting

2022–2023 Purpose & Impact Report and SASB Index (PDF – 7 MB)

2022–2023 Purpose & Impact Progress Summary (PDF – 2 MB)

2022–2023 Diversity, Equity & Inclusion Report (PDF – 2.9 MB)

2022 Diversity Snapshot (PDF – 3.5 MB)

McDonald’s Global Happy Meal Goals Final Report on Progress (PDF – 1.8 MB)

2021 Performance Reporting

2021–2022 Purpose & Impact Progress Report (PDF –  5.7 MB)

2021–2022 Purpose & Impact Progress Summary (PDF – 5 MB)

2021 Purpose & Impact Reporting Website Archive (PDF – 4.8 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)

2020 Performance Reporting

2019–2020 Purpose & Impact Summary Report (PDF – 2.7 MB)

2020 Diversity Snapshot (PDF - 342 KB)

2020 SASB Index (PDF – 162 KB)

Earlier Performance Reporting

2020 ESG Reporting Website Archive (PDF – 5 MB)

2019–2020 Purpose & Impact Summary Report (PDF – 2.7 MB)

2019–2020 Progress Highlights (PDF – 869 KB)

2019 ESG Reporting Website Archive (PDF – 7 MB)

2019 SASB Index (PDF – 123 KB)

2018 ESG Reporting Website Archive (PDF – 1.7 MB)

2017 ESG Reporting Website Archive (PDF – 2.2 MB)

2016 ESG Reporting Website Archive (PDF – 2.4 MB)

CDP Responses

2023 CDP Climate Change (PDF – 1 MB)

2023 Forests (PDF – 790 KB)

2023 Water Security (PDF – 245 KB)

2022 CDP Climate Change (PDF – 827 KB)

2022 CDP Forests (PDF – 606 KB)

2021 CDP Climate Change (PDF – 588 KB)

2021 CDP Forests (PDF – 580 KB)

2020 CDP Climate Change (PDF – 552 KB)

2020 CDP Forests (PDF – 521 KB)

2019 CDP Climate Change (PDF – 520 KB)

2019 CDP Forests (PDF – 441 KB)

2018 CDP Climate Change (PDF – 521 KB)

2018 CDP Forests (PDF – 426 KB)

2017 CDP Climate Change (PDF – 1.3 MB)

2017 CDP Forests (PDF – 1.1 MB)

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Footnotes

¹ Broiler welfare: These commitments apply to chickens raised for sale at McDonald’s restaurants in Australia, Canada, France, Germany, Italy, Ireland, the Netherlands, Poland, South Korea, Spain, Switzerland, the U.K. and the U.S. Russia has been removed from the scope of this goal based on our 2022 exit from this market.

² Chicken antibiotic use: Markets covered by this goal include Brazil, Canada, Japan, South Korea, the U.S., Australia, China and Europe. For the purposes of this goal, Europe includes Austria, Azerbaijan, Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Moldova, the Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Switzerland, Sweden, the U.K. and Ukraine. As of December 2023, Belarus, Bosnia & Herzegovina and Kazakhstan have been removed from the scope of this goal based on our exit from those markets.

³ McDonald’s SBTi-validated target in full:

• McDonald’s Corporation commits to reduce absolute Scope 1 and 2 GHG emissions 50.4% by 2030 from a 2018 base year.
• McDonald’s Corporation also commits to reduce absolute Scope 3 energy and industrial GHG emissions from purchased goods and services, fuel and energy-related activities, upstream transportation and distribution, waste generated in operations, end-of-life treatment of sold products, and franchises 50.4% within the same timeframe.
• McDonald’s Corporation commits to reduce absolute Scope 3 FLAG GHG emissions 16% by 2030 from a 2018 base year. McDonald’s Corporation also commits to maintain no deforestation across its primary deforestation-linked commodities.

⁴ Calculated as the aggregated volumes of beef, soy sourced for chicken feed, palm oil, coffee and primary fiber-based guest packaging that are supporting deforestation-free supply chains, as a percentage of the aggregated total volumes sourced of these commodities.

⁵ Beef. Scope: Includes all beef suppliers to the McDonald’s System and their raw material suppliers globally and all McDonald’s restaurants owned and operated by the Company and its Franchisees that sell beef. McDonald’s requires all beef raw material sourced from high-deforestation priority regions to comply with McDonald’s Deforestation-Free Beef Procurement Policy and meet the requirements as outlined in McDonald’s Commitment on Forests and Natural Ecosystems (PDF – 126 KB). Countries with regions currently identified as high priority for beef include Brazil, Paraguay, Argentina and Australia. Exclusions: Beef used as secondary ingredients in McDonald’s products, for example, as flavoring in a sauce.

⁶ Soy (for chicken feed). Scope: Includes all soybean volume used in the feed of chicken sourced for McDonald’s products by all chicken suppliers to the McDonald’s System and all McDonald’s restaurants owned and operated by the Company and its Franchisees that sell chicken. Europe refers to Austria, Azerbaijan, Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Moldova, the Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, the U.K. and Ukraine. Countries with regions currently identified as high-deforestation priority regions for soy include Argentina (Chaco biome), Brazil (Amazon and Cerrado biomes) and Paraguay (Chaco biome). Given the complexity of soy supply chains, we consider that, unless demonstrated, all of McDonald’s sources of soy for chicken feed fall into high-deforestation priority regions, with the exception of chicken sourced in North America, where soy used in chicken feed is locally produced and considered low risk. Exclusions: Soy used as an ingredient in McDonald’s products sold in restaurants, for example, soy oil.

⁷ Palm oil. Scope: Includes all palm oil (including crude palm oil, palm kernel oil, derivatives and fractions) sourced for McDonald’s restaurants for use as restaurant cooking oil and all palm oil sourced by McDonald’s suppliers and used directly as an ingredient in a McDonald’s product and listed on the product’s ingredient statement. Includes all suppliers of products containing palm oil in the McDonald’s System and all McDonald’s restaurants owned and operated by the Company and its Franchisees that use palm oil. All countries are currently identified as high-deforestation priority regions for palm oil and all volumes are required to be covered by Roundtable on Sustainable Palm Oil (RSPO) certification or credits. All RSPO supply chain models applicable to RSPO are applicable to McDonald’s ‒ RSPO Identity Preserved (IP), RSPO Segregated (SG), RSPO Mass Balance (MB) and Book and Claim (BC) ‒ although McDonald’s is committed to increasing traceability by specifying physical certification for the palm oil used in the McDonald’s System in the greatest volumes (IP, SG or MB). Exclusions: Palm oil, palm kernel oil or their derivative used as secondary ingredients in McDonald’s products. This is when palm oil is used as an ingredient within an ingredient, for example, an emulsifier.

⁸ Coffee. Scope: Includes all ground and whole bean coffee, including decaffeinated coffee, used in espresso-based drinks and coffee brewed at McDonald’s restaurants, and all ground and whole bean coffee in McDonald’s-branded retail products. Includes all suppliers of coffee to the McDonald’s System. Market scope includes all McDonald’s restaurants owned and operated by the Company and its Franchisees that sell coffee, and retail outlets selling McDonald’s-branded coffee products. Countries with regions currently identified as high-deforestation priority regions for coffee include Honduras, Indonesia and Vietnam. McDonald’s requires all coffee sourced from these regions to be Rainforest Alliance Certified. Exclusions: Coffee extracts and ingredients used in products such as frappés and coffee in baked goods; coffee in cold brew drinks if they are brewed off-site; coffee extract in ready-to-drink retail products; and other locally sourced products containing coffee.

⁹ Fiber. Scope: Primary fiber-based packaging refers to products that are used to package guest food on premises at McDonald’s restaurants. This type of packaging includes containers, cups, wraps, bags for food, beverages, napkins, folding cartons, clamshells, food service bags, napkins, salad bowls, Happy Meal cartons, drink carriers and cup carriers. Includes all suppliers of primary-based packaging to the McDonald’s System and all McDonald’s restaurants owned and operated by the Company and its Franchisees. In 2021, the primary fiber-based packaging scope was expanded to include plastic alternatives such as wood stirrers and cutlery, and paper straws and lids. This broadened scope has resulted in a slight decrease in percent compliance. All volumes of contingency items sourced from suppliers compliant with our standards but not integrated into our data reporting system were counted as non-compliant. Countries with regions currently identified as high-deforestation priority regions for fiber include Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and Vietnam. McDonald’s requires all wood fiber sourced from these regions to be Forest Stewardship Council® (FSC®) certified or FSC® controlled wood sources with full chain of custody certification. Exclusions: Primary fiber-based packaging in food packaged off-site McDonald’s restaurants; tray liners, straws and limited locally sourced items.

¹⁰ Representation of Women – Corporate Staff: Global; Senior Director and Above, and All Corporate Staff

Data includes aggregate numbers from Australia, Austria, Belgium, Canada, Czech Republic, France, Germany, Italy, the Netherlands, Poland, Portugal, Slovakia, Spain, Switzerland, Ukraine, the U.K. and the U.S. Corporate employees who support our Developmental Licensees are also included. Data was obtained through various means, including informal identification and voluntary self-disclosure. 

¹¹ In the U.S., the term “Underrepresented Groups” generally means people who identify as Black, Indigenous, Asian or Pacific Islander, or otherwise as people of color, people of Hispanic or Latino/a/x descent, people with disabilities, people who identify as LGBTQ+, people from religious minorities, or people having a combination of these identities or attributes. For purposes of McDonald’s reporting, including with respect to Human Capital Metrics and Equal Pay, “Underrepresented Groups” is defined as people who identify as Black, Indigenous, Asian or Pacific Islander, people of Hispanic or Latino/a/x descent, or people having a combination of these identities or attributes.

¹² Data includes U.S. paid employees only. This data reflects U.S. employees who voluntarily disclosed race/ethnicity information. This data was obtained from two different collection processes which was then reconciled and integrated. Due to rounding, some totals may not correspond with the sum of the separate figures.

¹³ Underrepresented Groups Pay Gap Analysis Results (U.S.): The analysis is conducted on U.S. employees who voluntarily disclosed race/ethnicity information.

The following countries are included in the analysis: the U.S., Canada, France, Germany, the U.K., Australia, New Zealand, Czech Republic, Slovakia, Ukraine, Poland, Austria, Belgium, Switzerland, Netherlands, Spain, Italy, Portugal. In addition to these countries, descriptive analysis without statistical modeling has been conducted over the employees in the following countries: Singapore, Hong Kong, UAE (Dubai) and Ireland. These countries have been excluded from the statistical modeling due to insufficient headcount. High-level U.S. roles (VP+) are excluded from the U.S. dataset both for U.S. and Global results.

¹⁴  % Spend Through U.S. System With Diverse-owned Suppliers: U.S. systemwide spend is inclusive of spending by McDonald’s and its U.S. Franchisees. “Other” includes the following categories: Veteran-owned, Native American-owned, Disabled-owned, LGBTQ+-owned, and other unidentified categories, including unidentified Minority (MBE)-owned.

This figure includes supplier spending by all restaurants, whether owned and operated by McDonald’s or by Franchisees. Further, this figure is inclusive of U.S. Company-owned and operated restaurant spend, Supply Chain, Restaurant Development, Marketing, Legal, Global Technology, Workplace Solutions, Global Impact, Finance, Global People and other corporate functions. This figure also includes purchases made by Franchisees for advertising, restaurant development, technology, food, distribution, packaging, equipment and uniforms. This scope excludes non-controllables (Taxes, Utilities, Rent, Aircraft Fuel, Airport Fees, Facility Leases, Donations, Bank Fees and Subscriptions).

Our diverse-owned diversity spend figures in the U.S. include both self-certified and formal industry-recognized certification and Tier 1 and Tier 2 spend. Tier 1 suppliers are those from whom McDonald’s buys directly. Tier 2 suppliers are those with whom our suppliers do business.

Additionally, the gender diversity figure excludes women from Underrepresented Groups, who are reflected in the racial/ethnic demographic data.

Diverse-owned suppliers refers to businesses that are 51% owned, managed and controlled by women and/or Black, Hispanic, Asian, Indigenous, Veteran, LGBTQ+ and disabled persons or people having a combination of these identities or attributes.

Due to rounding, some totals may not correspond with the sum of the separate figures.

¹⁵ Marketing Investment Spend (National Diverse-Owned Media, Production Companies and Content Creators):

Paid Media investment represents contracted dollars with suppliers.

The classification of media, production companies and content creators as diverse-owned suppliers is determined by both self-certification and third-party certification.

Due to rounding, some totals may not correspond with the sum of the separate figures.

¹⁶ Packaging. Scope: Inclusive of all markets for our fiber-based packaging and Happy Meal book and toy packaging. For our plastic-based packaging, all markets are included except for Israel, Latin America and Turkey. Renewable sources refers to material that is composed of biomass from a living source and that can be continually replenished. Renewable applies to plastics only, not fiber. Source: ISO 14021:2016 for plastic, ASTM 6866 or ISO 16620-2. Fiber-based packaging made from 100% recycled sources must be third-party verified, unless certified under a Chain of Custody Forest Management standard. McDonald’s requires all wood fiber sourced from Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and Vietnam to be Forest Stewardship Council® (FSC®) certified or FSC® controlled wood sources with full chain of custody certification. Perfluorinated compounds are known to be historically persistent in the environment. McDonald’s commits to not intentionally adding fluorinated compounds through our processes, but fluorinated compounds present in the local environment make it difficult to remove all traces of fluorine from packaging. Please refer to our Nature, Forests & Water page for additional definitions. Exclusions: Primary fiber-based packaging in food packaged off-site of McDonald’s restaurants, tray liners and limited locally sourced items.

¹⁷ Non-structural components of packaging vary based on the packaging but may include adhesives, inks, overprint varnishes, retention agents or binders, processing aids, impact modifiers, minerals used non-structurally and nucleating and clarifying agents. We continue to monitor industry standards on these components and opportunities to work toward making any part of our packaging, including non-structural components, more sustainable.

¹⁸ Fluorinated Compounds. Scope: Inclusive of all markets except for Israel, Latin America and Turkey, and Happy Meal book and toy packaging. Renewable sources refers to material that is composed of biomass from a living source and that can be continually replenished. Renewable applies to plastics only, not fiber. Source: ISO 14021:2016 for plastic, ASTM 6866 or ISO 16620-2. Fiber-based packaging made from 100% recycled sources must be third-party verified, unless certified under a Chain of Custody Forest Management standard. McDonald’s requires all wood fiber sourced from Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and Vietnam to be Forest Stewardship Council® (FSC®) certified or FSC® controlled wood sources with full chain of custody certification. Perfluorinated compounds are known to be historically persistent in the environment. McDonald’s commits to not intentionally adding fluorinated compounds through our processes, but fluorinated compounds present in the local environment make it difficult to remove all traces of fluorine from packaging. Please refer to our Nature, Forests & Water page for additional definitions. Exclusions: Primary fiber-based packaging in food packaged off-site of McDonald’s restaurants, tray liners and limited locally sourced items.

¹⁹ Markets with advanced infrastructure: Mature waste and recycling infrastructure at a national level that has (1) recycling infrastructure network across the entire market, (2) multiple materials being recycled within this national infrastructure network, (3) existing legislation on recycling and (4) high customer awareness of waste and recycling. At the end of 2023, that included 21 markets where McDonald’s operates.

²⁰ Toys. Scope: Inclusive of all toys. Fiber-based toys or fiber components in the toys: 100% certified fiber required. All other materials: McDonald’s ambition is to reduce the use of virgin fossil fuel-based plastics, offer more sustainable toys by the end of 2025 and not manufacture electronics and batteries in Happy Meal toys globally. For bio- and plant-based plastics to be considered sustainable for McDonald’s, a minimum of 60% of plastic weight is required to come from recycled or renewable content or a combination of recycled and renewable content, though in many practical applications we anticipate that percentage will be much higher. The remaining 40% may be conventional fossil fuel-based material. These thresholds were developed in conjunction with input from NGOs, external manufacturing partners and scientists, and based on an assessment of sustainable toy and packaging industry leaders so that our targets reflected current sustainable engineering capabilities to maintain safety and functionality. Our efforts will result in an approximate 90% reduction in virgin fossil fuel-based plastic use against a 2018 baseline. Fiber-based packaging made from 100% recycled sources must be third-party verified, unless certified under a Chain of Custody Forest Management standard. Source: ISO 14021:2016. McDonald’s requires all wood fiber sourced from Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and Vietnam to be Forest Stewardship Council® (FSC®) certified or FSC® controlled wood sources with full chain of custody certification. The thresholds described above do not include the presence of adhesives, glues, inks, paints and coatings.

²¹ This figure is based on actual and, in some cases, extrapolated hiring data for the following participating markets: Argentina, Australia, Brazil, Canada, China, Colombia, Hong Kong, Italy, Japan, Jordan, South Korea, Mexico, NE India, Portugal, Spain, Switzerland, the U.K. and the U.S. McDonald’s collects data from McOpCo and participating Franchisees, but extrapolates where it does not have access to the underlying data globally. Additional markets that provide training data include Argentina, Austria, Brazil, Colombia, Denmark, France, Germany, Italy, Jordan, Mexico, NE India, the Netherlands, Panama, Switzerland, the U.K. and the U.S.

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