Progress and Performance

The progress data below reflects the latest information as of December 2018, 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, select and showcase McDonald’s Flagship Farmers to demonstrate leading best practices related to our Priority Impact Areas. 

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

As of the end of 2018, 84% of McDonald’s global beef supply is verified as compliant with our Commitment on Forests. This is a combination of beef coming from high-risk locations which has been verified through farm assessments, as well as beef traced back to locations with a low risk of deforestation.

Through our risk assessment, we determined that 18% of our beef supply was from high-risk locations (as of 2018). We identified the Chaco in Argentina and Paraguay, the Amazon and Cerrado in Brazil and Queensland in Australia as high-risk regions for deforestation associated with beef production. Recognizing that not all areas within these regions are high-risk, McDonald’s completed a risk analysis for each area in order to determine where to prioritize efforts. This analysis was completed using the WWF Living Forests report and will be reviewed on an annual basis.

 

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 (2019) 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 about Youth Opportunity 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 about our Commitment to Families 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. 2

 

Progress

In 2017, we released our new Chicken Antibiotics Policy for markets around the world. The information below outlines progress as part of our phased process:

Objective: By 2017, 100% of chicken served in the U.S. is free of antibiotics important to human medicine.

Update: We have achieved this goal. Since 2016, no chicken served in McDonald’s restaurants in the U.S. is treated with antibiotics important to human medicine.

Objective: By January 2018, HPCIAs will be eliminated in broiler chicken for Brazil, Canada, Japan, South Korea, the U.S., and Europe,1  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 routine preventive use.

Update: This objective has been achieved.

Objective: By January 2019, the usage of HPCIAs will be eliminated in broiler chickens for Australia and Russia, and Europe plans to have removed colistin.

Update: As of July 2019, all chicken suppliers to Australia and European markets have eliminated the usage of HPCIAs in our chicken supply chain. For new suppliers in Russia (added after July 2018), an extension has been granted until the end of 2021, to enable them to responsibly convert their supply chain to colistin-free.

January 2027: HPCIAs will be eliminated in all other designated markets2 around the world.

Goal

By 2020, source soy for chicken feed that does not contribute to deforestation.

 

Progress

McDonald’s completed a forest risk assessment of the facilities and farms that produce chicken in our supply chain. The results indicated that the footprint and impact on forests of these facilities was immaterial compared to soy production. As a result, soy was prioritized for action. Facilities and farms will be revisited in our annual supply chain assessment.

As of the end of 2018, 72% of McDonald’s global soy supply is verified as compliant with our Commitment on Forests. This is a combination of soy coming from high-risk locations which has been certified, through ProTerra or RTRS certification, as well as soy traced back to locations with a low risk of deforestation.

We have identified the regions where our suppliers source soy that have high deforestation risks. We have also taken a conservative approach and assumed that all soy used in the feed of chickens supplied to our restaurants in Europe, APMEA and Latin America is high risk, until further traceability is established as to their origin. This approach was informed by a traceability analysis we completed which demonstrated that the soy produced in Latin America is flowing into the chicken supply chain of Europe, APMEA and Latin America. We determined that 47% of our system’s global soy supply, used in the feed of chickens, is from high-risk locations (as of 2018).

Our goal states that, at a minimum, Roundtable on Responsible Soy Book & Claim certificates will cover all soy volumes used in poultry feed where the soy is produced in Argentina, Brazil or Paraguay. We are also reviewing alternative programs to determine if they can verify that soy being produced under the Soy Moratorium in the Amazon is not being produced in the Cerrado or Chaco, or is produced under conditions that meet all of our Commitment on Forests criteria.

Goal

Purchase 100% sustainable certified soy by 2020 in Europe.

 

Progress

In 2018, approximately 74% of the soy volumes used in the feed of chickens supplied to McDonald’s restaurants in Europe was covered by a combination of ProTerra or Roundtable on Responsible Soy certification.

Goal

Source chicken with improved welfare outcomes.

Progress

  • In 2018, we launched an independent Global Chicken Sustainability Advisory Council of diverse experts including genetics experts, FAI Farms, leading academics and researchers like Dr. Temple Grandin and Dr. Harry Blokhuis, and NGOs including conservation organization World Wildlife Fund.
  • In 2019, we defined farm-level and processing-level key welfare indicators (KWIs) and the methodology for measuring them. In 2020, we’ll begin gathering data on all these indicators as we work toward setting progressive targets with the support of our multi-stakeholder Chicken Sustainability Advisory Council.
  • In partnership with Foundation for Food and Agricultural Research (FFAR), we launched the SMART (Sensing, Monitoring, Analysis, Reporting, Technologies) broiler initiative to identify and fund emerging technology solutions to enable global, commercial-scale, on-farm measurement of key welfare indicators. Through this initiative, McDonald’s has invested US$2 million, while enabling another $2 million in matching grants. The SMART Broiler Program represents one of the largest investments in animal agriculture technologies focused on health and welfare.
  • McDonald’s was one of the first retailers to implement a Controlled Atmospheric Stunning (CAS) system into a broiler supply chain in the U.S.  Currently, 100% of our Canadian supply chain and 20% of our U.S. supply chain utilizes CAS. We are on track to meet our commitment of implementing CAS throughout U.S. and Canadian facilities by 2024. CAS is currently widely practiced by McDonald’s suppliers in Europe and Australia.

1. Markets covered by the policy include: Brazil, Canada, Japan, South Korea, the U.S., Australia, Russia, China and Europe.  For the sake of this policy, Europe includes the following countries: Austria, Azerbaijan, Belarus, Belgium, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Switzerland, Sweden, United Kingdom, Ukraine.

2. 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.

3. Greenpeace (2016) reports that “a study published in 2015 in the journal Science by Dr. Holly Gibbs, from the Department of Environmental Studies at the University of Wisconsin shows that the Soy Moratorium was five times more effective in reducing deforestation than the Brazilian Forest Code. The success of the Moratorium is a business case that captured the attention of the world.”

 

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

Our focus is on assuring the sustainability of the fish used in our famous McDonald’s Filet-O-Fish sandwich. This represents over 97% of all wild-caught fish used globally by the Company.

In 2018, 98% of the fish for the Filet-O-Fish was sourced from sustainably managed wild-caught fisheries, assessed and verified annually against the McDonald’s Sustainable Fisheries Standard by the Sustainable Fisheries Partnership.

 

Read more about our approach to sustainable fish.

 

Back to Top

 

Coffee Sustainability

Goal

100% of coffee to be sustainably sourced by 2020.

 

Progress

In 2018, 57% of our ground and whole bean coffee (64% of restaurant coffee globally and 3% of U.S. and Canada retail coffee) was sourced sustainably through Rainforest Alliance, UTZ, Fairtrade International and Fair Trade USA certification schemes, as well as McCafé SIP-approved programs. This includes espresso based drinks and coffee brewed at restaurants, and all coffee retail products.

Our volume of sustainably sourced coffee increased by 5.6% from 2017 to 2018 and we are on track to achieve our global 2020 target for 100% sustainably sourced coffee. In November 2019, McDonald’s USA announced that 100% of ground and whole bean coffee for their restaurants is sustainably sourced1, representing the largest market portion of our global coffee volumes. The European market has also met our commitment to sustainably source 100% of their coffee.

Goal

By 2018, all coffee from high-deforestation risk regions2 will be sourced from Rainforest Alliance Certified farms.

Progress

As of the end of 2018, 97% of McDonald’s global coffee supply is verified as compliant with our Commitment on Forests. This is a combination of; coffee coming from high-risk locations which is Rainforest Alliance certified, as well as coffee traced back to locations with a low risk of deforestation.

Through our risk assessment, we determined that 7% of our global coffee supply, is from high-risk locations (as of 2018). Of the coffee grown in high-deforestation risk countries, 60% was Rainforest Alliance certified in 2018.

While we have not met the timeline for this goal, we are working diligently with our supply chain to source the remaining 3% of our high-risk supply from Rainforest Alliance Certified farms.

Read about our approach towards sustainably sourced coffee.

 

1 Except Hawaii which sources locally and will be meeting the goal in 2020.

High deforestation risk regions for coffee include Honduras, Indonesia, and Vietnam.

 

Back to Top

 

Palm Oil Sustainability

 

Goal

By 2020, 100% of the palm oil used in McDonald’s restaurants and as ingredients1 in McDonald’s products will support sustainable production. 

 

Progress

100% of our palm oil supply has been Roundtable for Sustainable Palm Oil (RSPO) certified since 2017, in compliance with our Commitment on Forests.

We are committed to increasing traceability for the palm oil used in the McDonald’s system in the greatest volumes, which means we are increasing our physical RSPO volumes (Segregated and Mass Balance). Our volumes of physical certified oils have increased from 11% in 2017 to 58% in 2018.

Our suppliers are also expected to be active members of the RSPO and report through the RSPO Annual Communications of Progress.

2018 RSPO chain of custody system (covering 100% of global supply):

  • 58% Mass Balance
  • 9% Segregated
  • 33% verified using book and claim certificates (the minimum level of verification currently required according to our palm oil policy)

Goal

All centrally managed suppliers of restaurant and par-fry oil must:

  • Be active members of the RSPO and report through the RSPO Annual Communications of Progress
  • Have a public commitment to eliminate deforestation and supporting strategy
  • Have a strategy for traceability to the mill and plantation level
  • Be committed not to source from peatlands, high conservation value land and high carbon stock forests
  • Be committed to uphold human rights at the plantation level and Free and Prior Informed Consent 
  • Have a third-party verification process
  • Have a strategy to address any open grievances

Progress

Since 2016, all direct suppliers of restaurant and par-fry oils submitted documentation outlining that they have policies and programs in place to fulfil the requirements outlined in our Sustainable Palm policy. 

Read more about our approach toward sustainably sourced palm oil and how we're committed to conserving forests.

 

1 Ingredients includes any type of palm oil used directly as an ingredient in a McDonald’s product and listed on the product’s ingredient statement.

 

Back to Top

 

 

Our Planet

 

Conserving Forests 

 

Goals

2020: Eliminate deforestation in supply chains for our beef, chicken (including soy in feed), palm oil, coffee and the fiber used in guest packaging by 20201. Below, you can find more information on our progress in these primary commodities against our 2020 goal.

2030: Eliminate deforestation from our global supply chain by 2030.

 

Progress in Beef Sourcing

As of the end of 2018, 84% of McDonald’s global beef supply is verified as compliant with our Commitment on Forests. This is a combination of beef coming from high-risk locations which has been verified through farm assessments, as well as beef traced back to locations with a low risk of deforestation2.

Through our risk assessment, we determined that 18% of our beef supply was from high-risk locations (as of 2018). We identified the Chaco in Argentina and Paraguay, the Amazon and Cerrado in Brazil and Queensland in Australia as high-risk regions for deforestation associated with beef production. Recognizing that not all areas within these regions are high-risk, McDonald’s completed a risk analysis for each area in order to determine where to prioritize efforts. This analysis was completed using the WWF Living Forests report and will be reviewed on an annual basis.

 

Progress in Chicken Sourcing

McDonald’s completed a forest risk assessment of the facilities and farms that produce chicken in our supply chain. The results indicated that the footprint and impact on forests of these facilities was immaterial compared to soy production. As a result, soy was prioritized for action. Facilities and farms will be revisited in our annual supply chain assessment.

As of the end of 2018, 72% of McDonald’s global soy supply is verified as compliant with our Commitment on Forests. This is a combination of soy coming from high-risk locations which has been certified, through ProTerra or RTRS certification, as well as soy traced back to locations with a low risk of deforestation.

We have identified the regions where our suppliers source soy that have high deforestation risks. We have also taken a conservative approach and assumed that all soy used in the feed of chickens supplied to our restaurants in Europe, APMEA and Latin America is high risk, until further traceability is established as to their origin. This approach was informed by a traceability analysis we completed which demonstrated that the soy produced in Latin America is flowing into the chicken supply chain of Europe, APMEA and Latin America. We determined that 47% of our system’s global soy supply, used in the feed of chickens, is from high-risk locations (as of 2018).

Our goal states that, at a minimum, Roundtable on Responsible Soy Book & Claim certificates will cover all soy volumes used in poultry feed where the soy is produced in Argentina, Brazil or Paraguay. We are also reviewing alternative programs to determine if they can verify that soy being produced under the Soy Moratorium in the Amazon is not being produced in the Cerrado or Chaco, or is produced under conditions that meet all of our Commitment on Forests criteria.

 

Progress in Palm Oil Sourcing

100% of our palm oil supply3 has been Roundtable for Sustainable Palm Oil (RSPO) certified since 2017, in compliance with our Commitment on Forests.

We are committed to increasing traceability for the palm oil used in the McDonald’s system in the greatest volumes, which means we are increasing our physical RSPO volumes (Segregated and Mass Balance). Our volumes of physical certified oils have increased from 11% in 2017 to 58% in 2018.

Our suppliers are also expected to be active members of the RSPO and report through the RSPO Annual Communications of Progress.

2018 RSPO chain of custody system (covering 100% of global supply):

  • 58% Mass Balance
  • 9% Segregated
  • 33% verified using book and claim certificates (the minimum level of verification currently required according to our palm oil policy)


Progress in Coffee Sourcing

As of the end of 2018, 97% of McDonald’s global coffee supply is verified as compliant with our Commitment on Forests. This is a combination of; coffee coming from high-risk locations4 which is Rainforest Alliance certified, as well as coffee traced back to locations with a low risk of deforestation.

Through our risk assessment, we determined that 7% of our global coffee supply, is from high-risk locations (as of 2018). Of the coffee grown in high-deforestation risk countries, 60% was Rainforest Alliance certified in 2018.

While we have not met the timeline for this goal, we are working diligently with our supply chain to source the remaining 3% of our high-risk supply from Rainforest Alliance Certified farms.


Progress in Fiber Sourcing

As of the end of 2018, 94% of McDonald’s global fiber supply, used for primary fiber-based guest packaging5, is verified as compliant with our Commitment on Forests. This is a combination of; fiber coming from high-risk locations that has been FSC certified, as well as fiber traced back to locations with a low risk of deforestation5.

Through our risk assessment, we determined that 9% of our fiber supply, used for primary fiber-based guest packaging is from high-risk locations (as of 2018).

As of the end of 2018, 81% of our primary fiber-based guest packaging came from third-party verified recycled or certified fiber (FSC, Programme for the Endorsement of Forest Certification™ or PEFC-endorsed) sources.

1 2020 goals conclude December 2020, unless otherwise stated.

2 High risk regions for beef include Argentina, Australia, Brazil and Paraguay and top 10 beef sourcing countries include the U.S., Australia, Germany, Brazil, Ireland, Canada, France, New Zealand, the U.K. and Poland.

3 Ingredients includes any type of palm oil used directly as an ingredient in a McDonald’s product and listed on the product’s ingredient statement.

4 High deforestation risk regions for coffee include Honduras, Indonesia, and Vietnam.

5 Primary guest 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, and cup carriers. The goal excludes food packaged off-site, wood, and limited locally sourced items. High deforestation risk countries include Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia, and Vietnam.

 

Read more about how we're committed to conserving forests.
 

Back to Top

 

Our People and Communities 

Community investment 

Along with Franchisees and suppliers, McDonald's generates jobs and makes capital investments that help build stronger communities around the world. In 2017, these amounted to $4.7 billion. 
 

Year Capital Expenditure Income Taxes Paid
2014 $2.6B $2.4B
2015 $1.8B $2.0B
2016 $1.8B $2.4B
2017 $1.9B $2.8B


The Company also matches funds raised by Company employees up to $5,000 ($10,000 for a Vice President or Board member). Each year, this equates to more than $1 million, doubling the efforts of our people. We also run a payroll giving scheme so that Company employees can donate to charities of their choice in a tax-efficient way. 
 

Back to Top