Progress and Performance

We’ve transitioned away from the former CSR and Sustainability Framework and its associated annual progress reports to the more dynamic environmental, social and governance (ESG) performance reporting website platform that we will use going forward. We will continue to add and streamline metrics on this site over time as our measurement capabilities grow, but we anticipate that it will take a reporting cycle or two to have a more consistent, comprehensive snapshot of our impact. The progress data below reflects the latest information as of December 2017, unless stated otherwise.

 

On this page:

Global Scale for Good Priorities: Beef Sustainability | Packaging and Recycling | Climate Action | Youth Opportunity | Commitment to Families

Our Food – Sustainable Sourcing Commitments: Chicken | Fish | Coffee | Palm Oil

Our Planet: Conserving Forests

Our People & Communities: Community Investment

 

Global Scale for Good Priorities

Beef Sustainability

As a part of our broader strategy, in 2017 we launched a set of ambitious beef sustainability goals for 2020. These goals apply in each of our top 10 beef sourcing countries (U.S., Australia, Germany, Brazil, Ireland, Canada, France, New Zealand, U.K. and Poland), which collectively represent more than 85% of our global beef volumes.

 

Goal

Accelerate industry progress: By 2020, source a portion of our beef from suppliers participating in sustainability programs aligned with Global Roundtable for Sustainable Beef (GRSB) principles and criteria, and that meet McDonald’s requirements for each applicable market.

 

Progress

We continue to source a portion of our beef from recognized sustainability programs in two of our top 10 beef sourcing countries.

In 2016, we began purchasing a portion of our beef from a fully verified supply chain sustainability pilot program in Canada. This initiative is now being led by the Canadian Roundtable for Sustainable Beef. Arcos Dorados – Latin America’s largest restaurant chain and one of the Company’s largest Franchisees – sourced beef through the Novo Campo program during the Rio Olympics. We are actively collaborating with key national stakeholders to develop beef sustainability programs in our remaining eight markets.

 

Goal

Share knowledge and tools: By 2020, engage with beef producers through outreach projects to help develop and share best practices related to our Priority Impact Areas.

 

Progress

As of June 2018, five of our top 10 beef sourcing countries are supporting or sponsoring beef producer sustainability groups, tools or programs.

 

Goal

Promote Flagship Farmers: By 2020, use our Flagship Farmers program to select and showcase our most progressive suppliers.

 

Progress

As of June 2018, four of our top 10 beef sourcing countries have recognized one or more beef producers as Flagship Farmers to work with peers and share their industry-leading processes and practices. The remaining countries will be recognizing beef Flagship Farmers throughout 2018 and 2019. In addition to adding these sustainability champions to the Flagship Farmer Program, we’re also focused on providing them with resources and tools that better enable and equip them to engage with other farmers and industry influencers.

 

Goal

Pioneer new practices: By 2020, set up McDonald’s progressive farm partnerships to trial and discover new practices related to our priority impact areas.

 

Progress

As of June 2018, four of our top 10 beef sourcing countries have one or more pioneering projects underway or have a Progressive Farm Partnership in progress to test the scalability of key research.

 

Goal

Conserve forests: By 2020, in regions with identified risks relating to the conservation of forests, verify that the beef sourced from those regions comes from farms where primary forests and high conservation value lands are preserved. This is part of our Global Commitment on Forests and includes regions outside of our top 10 beef sourcing countries.

 

Progress

The first step for the Company was to identify the list of countries that we currently source beef from that have a high deforestation risk, as defined by the World Wildlife Fund Living Forests report. We are working with these countries and our suppliers, alongside expert consultants including Proforest and Agrotools to identify tailored risk mapping and implementation plans for these identified regions.

We’re also engaged in multi-stakeholder groups to address these issues, including:

 

Goal

Responsible Antibiotics Use: In collaboration with our suppliers, producers and farmer partners, we will reduce the overall use of medically important antibiotics - as defined by the World Health Organization (WHO) - in our beef supply chain, focusing on our top 10 beef sourcing markets: Australia, Brazil, Canada, France, Germany, Ireland, New Zealand, Poland, the U.K. and the U.S. Full policy specifics here.

Progress

McDonald’s has established pilots in each of our top 10 beef sourcing markets.  Within each of these 10 markets, there are pilot farms selected that represent differing geographies and rearing practices covering beef and dairy beef.

Read more about beef sustainability.

Back to Top

 

 

 

Packaging and Recycling

As one of the world’s largest restaurant companies, our goal is to reduce overall use of packaging, drive innovation in sustainable packaging and in the recycling sector, and engage millions of customers in the thousands of communities we call home to adopt recycling behaviors as the norm.

Goal

By 2025, 100% of McDonald’s guest packaging will come from renewable,1 recycled1 or certified2 sources.

Interim target: 100% of fiber-based guest packaging will come from recycled or certified sources where no deforestation occurs by 2020.

 

Progress

50% achieved, including the U.S., U.K., Canada, France, Germany, Russia, Japan and China.

70% of our fiber-based guest packaging comes from recycled or certified fiber sources.

As of 2018, all centrally managed guest packaging is fully out of foam. It is a requirement that markets do not use foam for any local guest packaging items. While the majority of our foam was removed years ago, we are proud of this important step that we’ve taken as we raise the bar for our system and our industry.

 

Goal

By 2025, our goal is to recycle3 guest packaging in 100% of McDonald’s restaurants. We understand that recycling infrastructure, regulations and consumer behaviors vary from city to city and country to country, but we plan to be part of the solution and help influence powerful change.

 

Progress

Currently, we recycle guest packaging in an estimated 10% of McDonald’s restaurants around the world. In some markets, we’re recycling at nearly 100% of our locations, and in others we’re just getting started.

12 of our top 16 markets now have recycling and litter programs and partnerships in place.

 

1. Recycled: Material that has been reprocessed from recovered [reclaimed] material by means of a manufacturing process and made into a final product or into a component for incorporation into a product. [ISO 14021:2016 “renewable” and “recycled” material.] Recycled material applies to plastics and fiber. Fiber-based packaging made from 100% recycled content must be third-party verified, unless certified under a chain of custody forest management standard.

2. Certified: Specifically, all guest packaging items (including hot cups, cold cups, carryout bags, folding cartons, clamshells, wraps, food service bags, napkins, salad bowls, Happy Meal cartons, drink carriers) made from paper/board sold to McDonald’s globally must be certified by FSC or Programme for the Endorsement of Forest Certification (PEFC). FSC is required when fiber is sourced from the following high-deforestation risk countries: Russia, China, Malaysia, Indonesia, Laos, Vietnam, Cambodia and Argentina by 2020.

3. Collection methods for recyclable materials will vary by market. Examples include, but are not limited to, tray collection of waste for back of counter separation, installed bins that allow guests to separate recycling from trash, collecting all waste in one bin and sending to a facility for separation and recycling.

Read more about packaging and customer recycling.

Back to Top

 

 

Climate Action

For our latest comprehensive disclosure on climate action, see McDonald’s CDP Climate Change (2018) Report.

 

 

Goals

Restaurants and Offices:
The Company will partner with Franchisees to reduce greenhouse gas emissions related to McDonald’s restaurants and offices by 36% by 2030 from a 2015 base year.

Progress

5% of our target has been achieved, which represents a 2% reduction from the 2015 baseline. The US VPPA deals referenced above are expected to contribute an additional 16% of the progress towards our total target.

Goals

Supply Chain:
Through collaboration and partnership with our suppliers and producers, the Company also commits to a 31% reduction in emissions intensity (per metric ton of food and packaging) across our supply chain by 2030 from 2015 levels.

Progress

We are in the process of establishing a new data system to comprehensively track progress towards this goal and will report at a later time. We have issued clear expectations to all suppliers in 2019, and are developing more detailed expectations for key commodity category strategies.

 

Energy consumption 1

McDonald's Company-Owned Restaurants (Top 9 Markets)

20143

20154

20165

20176

Direct energy consumption: kWh/GC2

0.268

0.233

0.210

0.298

Indirect energy consumption: kWh/GC

1.197

1.121

1.120

1.053

Overall energy consumption: kWh/GC

1.465

1.353

1.330

1.351

Overall energy consumption: GWh

2,983

2,829

 2,295

1,420

 

Franchise Restaurants (Top 9 Markets)

2014

2015

20165

20176

Direct energy consumption: kWh/GC

0.476

0.128

0.372

0.169

Indirect energy consumption: kWh/GC

 1.382

1.218

1.120

1.009

Overall energy consumption: kWh/GC

1.858

1.346

1.492

1.177

Overall energy consumption: GWh

16,472

16,646

12,315

13,025


1. These figures represent estimates based on the best available energy data in our top nine markets. Currently we do not have Company-owned restaurants in Brazil or Japan. We worked with Aligned Incentives for the data analysis of our energy consumption data.

2. GC represents total transactions for the calendar year. “Direct” energy data reflects the use of natural gas, propane, fuel oil and liquefied petroleum gas. “Indirect” energy data reflects electricity usage. We categorized it in this fashion to show their relationship to Scope 1 and Scope 2 of our estimated System-wide GHG emissions.

3. 2014 figures reflect primary data from 4,066 out of 4,229 Company-owned restaurants and 5,983 out of 22,234 Franchisee restaurants in our top nine markets, totaling 10,049 out of 26,893 restaurants overall. Primary energy data was extrapolated to estimate energy consumption for all restaurants in the markets and ownership types reported. The top nine markets included approximately 74% of the restaurants worldwide (26,893 out of 36,258 as of December 31, 2014).

4. 2015 figures reflect analysis of primary energy data from at least 4,127 Company-owned restaurants and 5,778 Franchisee restaurants in our top nine markets, totaling 9,905 out of 26,842 restaurants in those markets overall. Primary energy data was extrapolated to estimate energy consumption for all restaurants in the markets and ownership types reported. The top nine markets included approximately 73% of the restaurants worldwide (26,842 out of 36,525 as of December 31, 2015). We have continued to enhance our extrapolation methods over time as additional data has become available.

5. 2016 figures reflect analysis of primary energy data from 3,645 Company-owned restaurants and 7,032 Franchise restaurants in our top nine markets, totaling 10,677 out of 27,453 restaurants in those markets overall. Primary energy data was extrapolated to estimate energy consumption for all restaurants in the markets and ownership types reported. The top nine markets included approximately 73% of the restaurants worldwide (27,453 out of 37,590 as of December 31, 2016). We have continued to enhance our extrapolation methods over time as additional data has become available, leading to more statistically significant results with reduced uncertainty.

6. 2017 figures reflect analysis of primary energy data from 1,544 Company-owned restaurants and 7,379 Franchise restaurants in our top nine markets, totaling 8,923 out of 27,467 restaurants in those markets overall. Primary energy data was extrapolated to estimate energy consumption for all restaurants in the markets and ownership types reported. The top nine markets included approximately 73% of the restaurants worldwide (27,467 out of 37,858 as of December 31, 2017).

 

 

Greenhouse gas (GHG) emissions

GHG Protocol Categories2

20141,2

20152

20162

20172

Company-Owned Restaurants, Worldwide

Total Estimated GHGs (Megatons of CO2 Equivalents) 3

 

Direct (Scope 1)

0.178

0.193

0.182

0.151

Indirect (Scope 2)

1.775

2.030

1.780

0.764

Franchise Restaurants, Worldwide (Part of McDonald's Scope 3)

Total Estimated GHGs (Megatons of CO2 Equivalents) 3

 

Franchise: Direct

1.114

1.142

1.043

0.859

Franchise: Indirect

7.261

7.402

5.800

6.231


1. For our 2014 analysis, we worked with Enviance to launch an updated methodology to estimate GHG emissions from McDonald’s restaurant energy use and refrigerant emissions worldwide. This team, now at Aligned Incentives, continued our methodology improvements and analysis for 2015 and 2016.

2. Best available primary energy data from our top nine markets (see table above) was extrapolated to estimate energy consumption and GHG emissions for all restaurants worldwide as December 31, 2014 (36, 258 restaurants), December 31, 2015 (36,525 restaurants) and December 31, 2016 (27,453 out of 37,590), December 31, 2017 (27,467 out of 37,858). Refrigerant emissions were estimates using input/output analysis of McDonald’s data and U.S. industry average emissions information.

3. Enviance addressed uncertainty in GHG emissions estimates by conducting 1 million Monte Carlo simulations to establish 95% confidence intervals around each data point for 2013–2015. Aligned Incentives addressed uncertainty in GHG emissions estimates by conducting 100,000 Monte Carlo simulations to establish 95% confidence intervals for each data point for 2015–2016.

 

Read about how we’re addressing climate change and looking at every aspect of our restaurant design.

Back to Top

 

 

Youth Opportunity

In 2018 we launched a new initiative called Youth Opportunity, with a global goal to reduce barriers to employment for two-million young people by 2025, through pre-employment job readiness training, employment opportunities and workplace development programs. As part of this goal, McDonald’s also joined the Global Initiative on Decent Jobs for Youth, a United Nations led multi-stakeholder initiative, to help accelerate efforts to tackle the youth employment challenge.

Specific and measurable outcomes for the partnership’s goals will be agreed by ourselves and our partner non-governmental organization (NGO).

Read more here.

Back to Top

 

 

 

 

Commitment to Families

In 2018, we announced new, global goals through 2022 together with the Alliance for a Healthier Generation. These Global Happy Meal goals continue our collaboration to focus on Happy Meals, offering more balanced choices that kids and parents love. 

By the end of 2022, we aim to achieve these goals in all markets globally in addition to the 20 major markets,1 with measurement and reporting of progress among 20 major markets representing nearly 85% of our global Happy Meal sales. 

Read more here.

Back to Top

 

 

 

 

 

Our Food – Sourcing Sustainability Commitments

 

Chicken Sustainability

 

Goal

Eliminate the use of antibiotics defined by the World Health Organization as Highest Priority Critically Important (HPCIA) to human medicine as defined by the WHO from all chicken served by 2027.1 Intermediary phases are planned.2

 

Progress

No chicken served in McDonald’s U.S. is treated with antibiotics important to human medicine, since 2016. In 2017, we released our new Global Chicken Antibiotics Policy.

Goal

Purchase 100% sustainable certified soy used in chicken feed for McDonald’s restaurants in Europe by 2020.

 

Progress

In 2017, approximately 65% of the soy volumes used in the feed of chickens supplied to our restaurants in Europe was covered by a combination of ProTerra or Roundtable on Responsible Soy certification.

Goal

Animal health and welfare commitments on or before 2024:

  • Source broiler chickens raised with improved welfare outcomes. We plan to set targets, measure performance and report on key farm-level welfare outcomes across our largest markets.
  • Partner with technology companies, producers and suppliers to invest in the development of state-of-the-art digital monitoring systems to automate the gathering of key animal health and welfare indicators, including behavioral measures. Once established, these technologies will highlight potential areas for improvement in real time and will be among the first of their kind available at a commercial scale.
  • Conduct commercial trials in partnership with our largest global chicken suppliers to study the effect that certain production parameters have on key welfare indicators, as well as other sustainability outcomes, under large-scale, commercial conditions.
  • Establish a multi-stakeholder Advisory Council focused on chicken sustainability, which consists of academics, suppliers, animal welfare and environmental advocates, scientists and industry experts.
  • Require chickens to be raised in housing environments that promote natural behaviors such as pecking, perching and dust-bathing. These are encouraged through provision of perches, bales and access to floor litter 100% of the time and a minimum of 20 lux light intensity during daylight. These standards reflect recommendations from scientists in the U.S. and Europe.
  • Have all increased broiler welfare standards on farms audited by a third party.
  • In the U.S. and Canada, transition to sourcing chickens slaughtered by the use of Controlled Atmospheric Stunning (CAS), a U.S. Department of Agriculture-approved method that is recognized to be more humane for the animal, while also ensuring better conditions for workers. CAS is currently practiced by many approved suppliers for McDonald’s restaurants in Europe and Australia.

 

Progress

These commitments were announced at the end of 2017.

 

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

1. 2017: 100% of chicken served in the U.S. is free of antibiotics important to human medicine.
January 2018: HPCIAs eliminated in broiler chicken for Brazil, Canada, Japan, South Korea, the U.S. and Europe, with an exception for Colistin for Europe only; implementation of all other elements of the Global Chicken Antibiotics Policy across all markets, including a prohibition on routing preventative use.
End of 2019: HPCIAs will be eliminated in broiler chicken for Australia and Russia, and Europe plans to have removed Colistin.
January 2027: HPCIAs will be eliminated in all other designated markets around the world. Our goal is to have this policy implemented before this date.

 

Read more about responsibly sourced chicken.

Back to Top

 

 

 

Fish Sustainability

Goal

By 2020, all the wild-caught fish purchased for use in McDonald’s restaurants will be from verified sustainable sources.

 

Progress

Globally, all of the whitefish for McDonald’s Filet-O-Fish is sourced from sustainably managed fisheries, and McDonald’s has achieved MSC certification in North America, Europe and Brazil.

We’re working on a strategy to support the development of sustainability standards for aquaculture to guide our future purchases.

 

Resource dumped by HtmlRendererServlet

Resource path: /content/corpmcd/scale-for-good/esg-reporting/progress-and-performance/jcr:content/par/columncontrol_1836012246

Resource metadata: {sling.modificationTime=-1, sling.characterEncoding=null, sling.parameterMap={}, sling.contentType=null, sling.creationTime=-1, sling.contentLength=-1, sling.resolutionPath=/content/corpmcd/scale-for-good/esg-reporting/progress-and-performance/jcr:content/par/columncontrol_1836012246}

Resource type: nt:unstructured

Resource super type: -

Resource properties

jcr:primaryType: nt:unstructured

Resource dumped by HtmlRendererServlet

Resource path: /content/corpmcd/scale-for-good/esg-reporting/progress-and-performance/jcr:content/par/columncontrol_1292925180

Resource metadata: {sling.modificationTime=-1, sling.characterEncoding=null, sling.parameterMap={}, sling.contentType=null, sling.creationTime=-1, sling.contentLength=-1, sling.resolutionPath=/content/corpmcd/scale-for-good/esg-reporting/progress-and-performance/jcr:content/par/columncontrol_1292925180}

Resource type: nt:unstructured

Resource super type: -

Resource properties

jcr:primaryType: nt:unstructured

Resource dumped by HtmlRendererServlet

Resource path: /content/corpmcd/scale-for-good/esg-reporting/progress-and-performance/jcr:content/par/columncontrol_1414160844

Resource metadata: {sling.modificationTime=-1, sling.characterEncoding=null, sling.parameterMap={}, sling.contentType=null, sling.creationTime=-1, sling.contentLength=-1, sling.resolutionPath=/content/corpmcd/scale-for-good/esg-reporting/progress-and-performance/jcr:content/par/columncontrol_1414160844}

Resource type: nt:unstructured

Resource super type: -

Resource properties

jcr:primaryType: nt:unstructured

Resource dumped by HtmlRendererServlet

Resource path: /content/corpmcd/scale-for-good/esg-reporting/progress-and-performance/jcr:content/par/columncontrol_583622168

Resource metadata: {sling.modificationTime=-1, sling.characterEncoding=null, sling.parameterMap={}, sling.contentType=null, sling.creationTime=-1, sling.contentLength=-1, sling.resolutionPath=/content/corpmcd/scale-for-good/esg-reporting/progress-and-performance/jcr:content/par/columncontrol_583622168}

Resource type: nt:unstructured

Resource super type: -

Resource properties

jcr:primaryType: nt:unstructured