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ESG Reporting Website Archive 2016 ESG Reporting Website Archive 2016 A download of the Scale for Good section of the McDonald’s corporate website. Content covers McDonald’s Corporation and its majority-owned subsidiaries worldwide operations 1 during the fiscal year 2016 (January to December) unless otherwise stated. Contents Using our Scale for Good..................................................................................................................................4 Contributing to the UN Sustainable Development Goals ..............................................................8 Gaining a fresh perspective by Engaging Stakeholders ...............................................................13 McDonald’s Scale for Good Terms and Definitions.........................................................................21 Helping lead a global movement for Beef Sustainability ............................................................ 23 Beef Sustainability Stories..............................................................................................................31 Thinking circular with more sustainable Packaging and Recycling...................................... 35 Packaging and Recycling Stories .............................................................................................. 42 Commitment to Families .............................................................................................................................. 46 Our Work with the Alliance for a Healthier Generation ................................................. 50 Ambition meets opportunity: Our Investment in People ............................................................ 52 Our Food ................................................................................................................................................................. 56 Responsibly sourced Chicken .................................................................................................................... 59 All about responsibly sourcing Fish ........................................................................................................ 65 Helping you wake up to more sustainably sourced Coffee ....................................................... 68 Serious about Palm Oil.................................................................................................................................... 72 Working with suppliers to protect Animal Health and Welfare................................................ 75 Our Planet ...............................................................................................................................................................81 What we’re doing to address Climate Change.................................................................................. 83 We care about Conserving Forests ......................................................................................................... 85 Eliminating Waste ..............................................................................................................................................91 How we’re Protecting Water Resources ............................................................................................... 94 On the road to innovation in Transporting Our Food..................................................................... 97 Big presence, small footprint. That’s Smart Restaurant Design ........................................... 100 Smart Restaurant Design Stories ........................................................................................................... 104 Our People and Communities .................................................................................................................. 106 Our charity of choice: Ronald McDonald House Charities® (RMHC®) ................................ 107 We’re committed to respecting Human Rights...............................................................................110 2 Partnerships and platforms to support Farmer Livelihoods ....................................................114 Managing our ESG Reporting..................................................................................................................... 117 Progress and Performance ........................................................................................................................ 120 Our Scale for Good Governance ............................................................................................................. 134 3 Using our Scale for Good We believe that delicious food can also be sustainable – for our customers, producers and the environment. As one of the world’s leading restaurant brands, we’re using our Scale for Good to make this vision a reality. Our responsibility is our opportunity Using our Scale for Good plays an important role in the Velocity Growth Plan, and is right at the heart of our values. In order for people to feel good about visiting us, they need to feel good about our food, our company and the impact that we have on the world. The world is changing. The population is growing, cities are expanding and temperatures are rising, stretching basic resources like water and food to their limits. These are complex challenges that demand innovative solutions and collective action. As one of the world’s largest restaurant companies, we have the responsibility and opportunity to take action on some of the most pressing social and environmental challenges in the world today. We embrace this opportunity to drive meaningful progress, and to do so by collaborating with millions of customers, employees, Franchisees, suppliers and other partners. These initiatives are most impactful when they go beyond the direct reach of our company to influence action both within our business network and beyond. We call this using our Scale for Good. We hope our efforts can drive real change, so they become tomorrow’s standard. It’s an ongoing effort, and we’re always looking to what’s next. “We are proud to build on our strong commitment to the communities where we operate. With these bold actions, McDonald’s is embracing our leadership responsibility and demonstrating the incredible opportunities we can create for our customers, our people and our stakeholders when we harness our Scale for Good around the world.” Steve Easterbrook, President and CEO, McDonald’s “We recognize that the size and reach of our business puts us in a unique position to improve people’s lives and the environment all around the world. We want to use our Scale for Good and always keep raising the bar on what it means to be a responsible company committed to people and the planet.” Francesca DeBiase, Chief Supply Chain and Sustainability Officer, McDonald’s 4 Where we can make the biggest difference While we’re committed to taking on many challenges facing society today, we’re elevating a few global priorities where we believe we can make the greatest difference and drive industry-wide change. We can’t do this alone – to make truly meaningful progress, we will need to use our scale and reach to collaborate with others both within and beyond the McDonald’s system. Our four global priorities below reflect: Analysis of major social and environmental impacts of our food and our business. The material environmental and social issues that matter most to our customers and employees, Franchisees, suppliers and wider stakeholders. Beef Sustainability We’ve been working with farmers, environmental groups and governments for more than a decade to help advance beef farming and production practices. And we’re making progress. Packaging and Recycling We’ve set new progressive goals to improve our packaging, reduce waste and recycle more, to amplify our positive impact on the planet. Commitment to Families In partnership with the Alliance for a Healthier Generation, we’re raising the bar with more fruit, vegetables and dairy in our Happy Meals. Our Investment in People Every year, millions of people come to work at a McDonald’s restaurant to learn valuable work skills for life and continue their education. A solid foundation Beyond these global priorities, we will continue to drive progress on our goals and commitments across key social and environmental topics such as climate change, diversity, animal health and welfare, and supporting families and farmers. This is part 5 of our ongoing effort to produce food responsibly and take care of people and the planet. Producing our food We’re using our scale and reach to help create a food system in which people, animals and the planet thrive. We use high-quality ingredients, support sustainable sourcing and promote animal health and welfare. Protecting our planet We have both a responsibility and an opportunity to leave the planet a better place, by reducing our greenhouse gas emissions, minimizing food and packaging waste, conserving forests and protecting water resources across our value chain. Supporting our people and communities Whether in our restaurants, franchises or supply chain, an investment in those who work for us means a positive impact in local communities around the world. This means working environments that respect human rights and better opportunities for individuals, families and farmers. We’re listening It’s important that we listen to our stakeholders so that we can address the social and environmental priorities that matter the most, collaborate to drive action, ensure transparency and strengthen continued dialogue over
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