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Feeding and Fostering Communities McDonald’s Purpose & Impact Summary Report 2019–2020 There when people need us most In a difficult year, McDonald’s showed up for its communities Accelerating circular solutions How we are reimagining packaging Our food journey Sourcing quality ingredients while helping people, animals and the planet thrive What’s inside Driving positive 04 impact in the Food quality & sourcing 04 Our food journey 05 Helping coffee communities build resilience communities 06 Offering choices that kids and parents love: by Alistair Macrow ince becoming C E O we serve in 2019, I’ve had the opportunity to work Swith so many incredible people across the McDonald’s System and witness the actions they’ve 07 taken in service of our purpose – Our planet to feed and foster community. 07 Reimagining packaging In response to the global 09 Taking action on climate COVID-19 pandemic, we change: Q&A with have enhanced hygiene and Francesca DeBiase cleanliness practices to ensure 10 What if a restaurant could customer and crew safety generate all its own power across our global markets and from renewable energy? are continuing to make changes as science around the pandemic evolves. We worked to support local communities and frontline Welcome from our C E O workers, giving away meals and Chris Kempczinski distributing surplus food. And while the industry struggled 11 to maintain its supply during Community connection the early days of the pandemic, 11 Ian Borden on showing up 2020 brought extraordinary we leveraged our network of in times of need suppliers to keep providing 14 Helping families challenges for us all, and no food and important resources stay together community around the world to many of our restaurants and communities across the world. has gone untouched. We have Despite the impact of the focused on showing up for our pandemic, I’m proud that we have remained committed to communities – because we know making progress on some of the most pressing challenges of there’s a difference between 15 our time – from social inequality Jobs, inclusion operating in a community and to the impacts of climate & empowerment being part of one. change. We have continued our 15 Driving equitable opportunity investment into sustainable for all: an interview with packaging innovation, renewable Heidi Capozzi energy and regenerative farming 18 Helping people fulfill solutions to help drive action on their potential climate change. 19 Creating safe and respectful workplaces Introduction We also renewed our attention Guided by our values to make changes that drive Our customers want to see that the Underpinning all of the equitable opportunity for all by McDonald’s they visit locally matches decisions we make – big and launching our global aspiration how we act globally. They also expect small – are our values. They are Driving positive on diversity, equity and inclusion. us to play a critical role in driving the backbone of our business It allows us to use our influence and define who we are and how and scale to accelerate positive change in the world. we run our business. meaningful and overdue impact in the societal change for McDonald’s employees, franchisees, To ensure we have the greatest Community connection: Being Our values suppliers, customers and positive impact possible, we part of the community means communities. are focusing on four areas that supporting people every day, • Serve matter most: and especially when they need • Food quality & sourcing: We are helping to create a future of quality and secure food sourced in a responsible way, because how our food is produced and where it comes from matter to our customers, communities and the environment. We put our • Our planet: We are partnering with our franchisees, suppliers and farmers to protect our planet by finding innovative ways to keep waste out of nature and drive climate action. • Community connection: Being part of the community means supporting people every day, and especially when they need it most. It’s why we’re proud to support Ronald McDonald House Charities®, which enables families to stay together when a child is diagnosed with a life-threatening illness. Delivering on our purpose • Jobs, inclusion & empowerment: We’re looking to serve up bright futures by providing education and skills opportunities in the communities we serve and accelerating equity and inclusion across our business. it most. It’s why we’re proud communities Food quality & sourcing: customers and today and in the future to support Ronald McDonald We are helping to create a people first House Charities®, which enables As we look to the future, it’s future of quality and secure important that we continue to families to stay together when food sourced in a responsible • a child is diagnosed with a life- Inclusion embrace the changes taking way, because how our food We open we serve threatening illness. place around us so that we can is produced and where it our doors grow, meet evolving customer comes from matter to our Jobs, inclusion & to everyone expectations and make our customers, communities and empowerment: We’re looking brand even stronger. Our the environment. to serve up bright futures • Integrity customers want to see that the by providing education and Our planet: We are partnering We do the McDonald’s they visit locally skills opportunities in the with our franchisees, suppliers right thing matches how we act globally. communities we serve and and farmers to protect our planet They also expect us to play a accelerating equity and inclusion by finding innovative ways to critical role in helping drive across our business. • Community positive change in the world. keep waste out of nature and We are drive climate action. good neighbors • Family We get better together Our values guide us to always put our customers and people first, and ensure we open our doors to everyone. They guide us to do the right thing, be good neighbors and give back to our communities. As a family, we will continue to get better together. I’m proud of the meaningful difference that we already make in communities, but I’m also challenging us to do better. The next chapter in our story is already underway. Chris Kempczinski President and Chief Chris thanks our emergency workers Executive Officer, at Streeterville, Chicago, through our McDonald’s Corporation Thank You Meal program in 2020. Find out more on page 13 McDonald’s Purpose & Impact Summary Report 2019–2020 3 Food quality & sourcing cDonald’s has been on a journey and continues to work toward responsibly sourcing its food. We Mpartner with producers, N G Os, scientists and suppliers to evaluate our impact on the planet, the livelihoods of the people who produce our food, the communities in which they live and the well-being of the animals we rely on. We prioritize our efforts where we can have the greatest impact, focusing on six products: beef, fish, chicken, coffee, palm oil and fiber for guest packaging. Together with the World Wildlife Fund (W W F), we identified these products as having significant sustainability impacts. We are prioritizing action on a range of issues, from human rights and animal welfare to responsible antibiotic use. We have set goals against which we measure and track our progress, including a commitment to eliminate deforestation from the global supply chain by 2030. We invest in initiatives and partnerships to drive progress. By working with key partners, we can ensure our initiatives have the widest impact and achieve real change, both within our supply chain and beyond. As Nicola Robinson, Global Director of Sustainable Sourcing at McDonald’s, explains: Our food “Responsibly sourced food doesn’t start in the restaurant; it starts in the farms and the fisheries and begins with the dedication of suppliers and producers around the world and the partnerships we have with them. The COVID-19 crisis highlighted the vulnerability of agricultural supply chains and impacted journey farming communities. As we look ahead, we have an even greater responsibility to use At McDonald’s, we’re passionate about our food. our many relationships – from the farm to the restaurant – to ensure we can continue That means taking great care of where it comes to serve quality, sustainable food to our from, what goes into it and how it’s produced. communities long into the future.” This is key to its quality, and ultimately to creating We’re continuously collaborating with farmers and experts to trial new practices the “feel-good” moments our customers expect. around the world and collect important local insights. One of the benefits of this is that we can learn directly from producers who are already making a positive impact while improving farm productivity. This is why McDonald’s established the Flagship Farmers program – to recognize leading farmers and provide a platform for knowledge sharing within the farming community. Since its launch in 2007, Flagship Farmers has recognized 34 farmers in 17 countries across four continents. McDonald’s 4 Purpose & Impact Summary Report 2019–2020 Food quality & sourcing Our progress Helping coffee Beef Coffee communities For almost a decade, In 2019, 75% of our coffee we have worked with the was sustainably sourced build resilience Global Roundtable for Sustainable Beef through third-party certification (G R S B) and local roundtables around programs or the McCafé Sustainability For McDonald’s, responsible the world to support the adoption of Improvement Platform (S I P), sourcing includes supporting the more sustainable practices. In Brazil, developed in partnership with farmers who grow the ingredients Canada and the U.S., we are sourcing Conservation International, and we are for our food and drinks, and beef from sustainability programs making good progress toward our goal helping their communities to be aligned with G R S B Principles and of sustainably sourcing all our coffee Criteria.

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