McDonalds PurposeImpact ProgressReport 2023 2024

2023–2024
Our Purpose & Impact Report

McDonald’s Corporation
Impact
Report
McDonald’s Corporation Purpose & Impact Report 2023–2024 Introduction Our Planet Food Quality & Sourcing Jobs, Inclusion & Empowerment Community Connection Appendix 2
Our purpose is to feed

and foster communities.
As a leading global
foodservice retailer,
we believe it’s our
responsibility to make
a positive impact on
the world.
We’re driving that impact by living our purpose. We believe
the actions we continue to take today across our food, people,
communities and our planet will help contribute to building a better
business and a more trusted brand for generations to come. One of
these actions is reporting on our environmental and social activities.
What’s Inside
Introduction Our Planet Food Quality Jobs, Inclusion Community

& Sourcing & Empowerment Connection
McDonald’s is a leading global foodservice retailer, with more than We’re acting now to deliver on We’re working toward creating We’re helping build bright, We understand our business
41,000 restaurants in over 100 countries helping feed millions of our climate ambitions, protect a secure, more sustainable safe and inclusive futures by thrives when our communities
customers every day. Our System works as one to feed and foster natural resources, accelerate future for food by advancing nurturing skills, accelerating thrive, so we think globally
the communities we serve. Whether we are helping deliver more solutions to reduce waste and safety and quality, prioritizing equity and respecting human and act locally, helping feed
sustainable food systems or building an inclusive workplace, we transition to more sustainable animal health and welfare and rights, empowering the and support people when and
believe there has never been a more important moment to work packaging and toy materials. making balanced meals more people and the communities where they need it most.
together to advance collective impact. accessible to families across we serve.
16 Climate Action 65 Community Impact
the world.
4 A Message From Our CEO 21 Packaging, Toys & Waste 46 Human Rights & Philanthropy
6 Who We Are 25 Nature, Forests & Water 30 Food Safety 50 Diversity, Equity 69 Ronald McDonald
7 The McDonald’s System 33 Nutrition & & Inclusion House Charities
8 Our Impact Strategy & Approach Marketing Practices 60 Talent & Benefits
36 Responsible Sourcing
39 Animal Health & Welfare
and Responsible
Antibiotic Use
A Message From Our CEO
This past year, our focus remained In moments like these, I’m reminded of the sheer Fostering Inclusion
impact of the McDonald’s System. We have the
firmly on serving our customers At our core, McDonald’s is a people business.
power to transform our business and impact the
and communities – and I’m proud of world around us. And we do so, as we always have, Guided by our values, we’re committed
the positive impact the McDonald’s energized by our values and our purpose: to feed to fostering inclusive workplaces. We are
and foster communities. currently taking actions to create the type of
System is making around the world. environment where people want to work by
investing in our people through professional
Ray Kroc used to say, “We have an obligation Building Resilience Through development opportunities, further preparing
to give something back to the community that Climate Action them for a long career with us, and providing a
gives so much to us.” This sentiment was even holistic employee value proposition. This is in
more meaningful this past year, as the world As a leading global brand, we understand our
part accomplished through our Global Brand
experienced a humanitarian crisis caused by the responsibility to help preserve our planet so our
Standards, which are already helping to promote
wars in Ukraine and the Middle East, along with business and future generations can continue
even safer workplaces.
the devastating natural disasters that plagued to thrive. To protect the future of McDonald’s, we
many regions. need to help protect our Earth’s natural resources
so that we can continue serving our communities. Serving Our Communities
At the same time, many consumers are feeling
We’re making progress toward our commitment Every day, the McDonald’s System strives to
a strain on their wallets as a result of the volatile
to reach net zero emissions by 2050. This fulfill our purpose of feeding and fostering
environment. Despite these challenges, I’m
includes working with suppliers to help communities locally, and there’s no greater
confident that we’re moving with urgency to
eliminate deforestation from our global supply example of this dedication to drive positive
deliver great value for our customers while
chain, adopting and scaling more sustainable impact than our work with Ronald McDonald
showing up for the communities we serve.
agricultural practices, reducing waste and House Charities (RMHC). In 2023, McDonald’s
transitioning to more sustainable packaging. Corporation donated $20 million as part of our
five-year, $100 million commitment. This year,
we join RMHC in celebrating 50 years of impact
for families with children who are sick. We are
inspired by the work that has been done – and will
continue – to support families around the world.
Alongside our world-class Franchisees, we have McDonald’s has a legacy of

also worked to reduce barriers to employment
delivering strategies that achieve Additionally, we’re partnering with non-
for 2.2 million young people in communities
around the world by providing training programs impact at scale for both people governmental organizations (NGOs) to help
and employment opportunities – exceeding our and the planet. It’s a legacy we’re us progress on our social impact efforts.
target goal two years ahead of schedule. For example, by working closely with the
extremely proud of and one we
Business Advisory Group on Migration, and
share with all our stakeholders through our work with the International
Looking Toward the Future through active engagement and Youth Foundation (IYF), we’re helping
As we look to the future, I’m confident that we a history of honest, transparent reduce barriers to employment and open
will continue making a positive impact on local new avenues for positive change. We’re
reporting. I’m inspired by the collaborating with the right people to
communities around the world. By leveraging
our global scale and leading with purpose work we do, every day, to feed A Message From Jon Banner, ensure that we’re using our scale to make a
today, we will continue to make a difference for and foster communities, and Executive Vice President and difference around the world.
the generations of tomorrow. I look forward to look forward to helping steer Global Chief Impact Officer, As we look to the future, I'm filled
seeing us do that – in a way that only McDonald’s
the future of sustainability McDonald’s Corporation with enthusiasm for what lies ahead.
can – through the collective strength of
our System. at McDonald’s. Every day, I continue to be impressed by
The challenges our world faces are
significant, but so is our determination to
the positive impact that all three legs be a force for good. We're not just adapting
Chris Kempczinski of the stool are making. McDonald’s is to change – we’re helping to drive it, with a
President and CEO, McDonald’s Corporation positioned to use our voice to help influence clear vision of a more sustainable, equitable
positive change around the world. Our and resilient future.
business resilience strategy helps us ensure
this impact lasts while protecting our ability I’m so proud our System’s collective
to operate and serve communities in the progress to reach our goals and set targets.
future. To achieve our purpose, we know that Working together, we will continue to help
we need to continue putting our people first. make a positive impact on our people and
Beth Hart
And with over 2 million employees working our planet, every day.
Chief Sustainability & Social Impact Officer
under the Arches, we’re advancing our efforts
to promote safe, respectful, and inclusive Jon Banner
workplaces. As of the end of 2023, our Global Executive Vice President and Global Chief
Brand Standards, aimed at protecting the Impact Officer, McDonald's Corporation
physical and psychological safety of all our
people are in place across more than 41,000
locations worldwide.
Who We Are
What began as a small drive-in Our Growth Pillars What matters to our customers matters to our brand. Our growth pillars build on our strong
McDonald’s, so our vision – now and in the future foundations to help ensure we can meet the
restaurant in San Bernardino,
– centers on five core values: Serve, Inclusion, moment today and have long-term success.
California, has grown into a Marketing
Integrity, Community and Family. These values
Staying connected to what
global icon that proudly serves our customers love about us
form the backbone of our brand and support our We’re committed to helping improve the lives of our
mission to make delicious feel-good moments people, our industry and the planet by putting our
millions of customers every and bringing that emotion customers and employees first, sourcing quality
easy for everyone; living them is the foundation of
day around the world. into our creative.
McDonald’s next great chapter. food, helping to reduce waste and contributing to
employment opportunities around the world.
While much has changed over the last six
Core Behind our Golden Arches is a global community
decades, Ray Kroc’s original commitment to We believe we have a responsibility to take on some
Our core menu remains of crew, farmers, suppliers, Franchisees and
Quality, Service, Cleanliness and Value has of the most pressing challenges of our time, and we
our competitive advantage countless others who make up who we are
endured and made McDonald’s a trusted embrace this opportunity to lead by example and
and a strength that we are as a brand. People are at the cornerstone of
favorite for nearly 70 years. create meaningful change.
capitalizing on to grow share. our business and are an essential part of the
McDonald’s System. Company employees, who
McDonald’s restaurants, whether franchised
Digital, Delivery, Drive-Thru include those in our corporate and other offices
or operated by the Company, serve a
and Development (“4-Ds”) as well as in Company-owned and operated
locally relevant menu of quality food and
We will continue to expand restaurants, totaled over 150,000 worldwide as of
beverages in communities across more
our loyalty program to power year-end 2023, of which approximately 70% were The Company’s
than 100 countries. Of the more than
41,000 McDonald’s restaurants at year-end personalized experiences while based outside of the U.S. In addition to Company Five Core Values
getting closer to our customers by employees, the more than 2 million individuals who
2023, approximately 95% were franchised.
accelerating the development of work in McDonald’s franchised restaurants around 1 Serve – We put our customers
Our continued commitment to our
new locations. the world are critical to our success, enabling the and people first.
Accelerating the Arches strategy is keeping
Company to drive long-term value creation and
us relevant to our customers, through a
further its purpose and mission. 2 Inclusion – We open our doors to everyone.
focus on marketing, our core menu and the We’re also using technology to leverage the
customer experience. full strength of our scale through consumer, 3 Integrity – We do the right thing.
As the consumer landscape shifts, we are using
restaurant and company platforms. our competitive advantages to further strengthen 4 Community – We are good neighbors.
5 Family – We get better together.
The McDonald’s System

Our Suppliers Our Operations, Employees and Franchisees Our Communities
Engaging with Identifying Food Manufacturing, Research and Development Families and Well-Being
suppliers on opportunities for Advancing food safety from the farm to our customers Helping support Ronald McDonald House Charities
emissions targets increased efficiency
and accounting Packaging Manufacturing, Research
and Development Providing Support During Times of Need
Innovating and sourcing new materials to eliminate + Providing crisis + Offering hardship + Providing food and
unnecessary packaging and encourage circularity response with and disaster relief for supply donations
Protecting nature and community Company-owned and
promoting biodiverse partners operated restaurants
Office Buildings/Sites
ecosystems in the U.S.
Reducing office greenhouse gas (GHG) emissions
Tackling deforestation in Nutrition and Choice

our supply chain + Offering + Marketing Company Employees Company Employees and Franchisee Employees Opportunity Employment and Other Philanthropic Investments
balanced responsibly + Offering competitive + Fostering safe, + Providing continuous + Reducing barriers + Making charitable + Promoting
meals for kids to children employee compensation respectful and inclusive learning and to youth grants and volunteerism
Respecting Conserving
and families and benefits workplaces development employment donations opportunities
human water, using
opportunities and resources
rights in our it responsibly
supply chain and efficiently
and building
resiliency Franchisee-Owned Restaurants
Company-Owned Restaurants
Supporting suppliers
in farm management
and scaling regenerative
practices
Within All Restaurant Buildings/Sites
(Company-owned and operated restaurants and Franchisee-owned restaurants)
+ Reducing emissions + Designing more + Advancing the + Reducing virgin
in our restaurant sustainable recycling of guest fossil fuel-based
Prioritizing animal welfare and Using more alternative fuels,
operations restaurants packaging and small plastics
responsible antibiotic use fewer miles and less fuel
Our Impact Strategy

& Approach
Our Impact Areas and Goals How We Prioritize Impact Areas engaging regularly with both internal and external
stakeholders to discuss the nuances of key issues
In 2020, we announced our Impact Strategy, We prioritize the environmental and social
We believe we have a issues that are of the highest importance to our
and transparency expectations.
centered on four Impact Areas. These were
responsibility to ensure informed by feedback from stakeholders stakeholders and where we believe our business Engaging NGOs and academic advisors
long-term, sustainable value and designed to help us make a difference at has the greatest impact. Working across the through strategic partnerships is a key part of
scale and drive industrywide change. We have business, our Global Sustainability & Social how we have determined environmental and
creation by taking action Impact team and broader Global Impact function
established strategies, policies, goals and social priorities over the last few decades. We
on the environmental and performance indicators to measure and manage continuously gather insights to determine engage with a wide range of NGOs, associations
social issues that are most annual progress and report against each area. where to focus our efforts, evolve our strategy and external experts who provide insights
and enhance our reporting. This includes
important to our stakeholders and perspectives that shape our strategies,
research, goals, policies and performance
and business.
indicators. We also monitor emerging laws
and regulations concerning environmental
We also believe effectively managing our Our Planet Food Quality & Sourcing
environmental and social impact is part and social impact topics and reporting while
of operating our business responsibly. We’re helping to drive climate action, We’re working toward responsibly engaging with policymakers to inform them of
By doing so, we aim to maximize shared protecting natural resources, reducing sourcing our priority commodities, our environmental, social and governance (ESG)
value, ensure trust in our brand and build waste and transitioning to more prioritizing animal health and welfare commitments and progress.
long-term resiliency. sustainable packaging and toys. and making safe, quality food accessible
to families across the world. In addition, our enterprise-wide risk management
is designed to identify, assess and prioritize
strategic, financial and reputational risks that
Our Impact Strategy could have a sustained impact on our Company.
The ERM framework leverages internal risk
committees with cross-functional leadership,
Jobs, Inclusion Community Connection including sustainability and social impact leaders
& Empowerment We’re helping feed and support people and team members. These committees meet
when and where they need it most. regularly to evaluate and prioritize risks in the
We’re serving up bright futures in our
context of our business strategy, with further
communities, nurturing skills, helping
escalation to our CEO, Board and/or Board
to accelerate equity and respecting
Committees, as appropriate.
human rights.
Our Governance Approach Our Reporting In addition, certain information in this report
has been provided by third parties, including
We believe a robust governance structure is critical to effectively managing our strategies, goals our suppliers. In these cases, we have relied
and performance indicators tied to environmental and social issues. We have defined owners and In This Report
on these third parties for accuracy and
certifying officers for each of our public commitments and disclosures. Supported by cross-functional Our progress and actions are covered in this completeness. Statements about future
working groups, Franchisees and suppliers, these individuals are accountable for progress, elevation report, which provides a review of the strides developments and past occurrences are based
of key risks, accuracy and completeness of disclosure. Our Impact Reporting & ESG Governance team and progress we made in 2023. Unless otherwise on information and assumptions available as of
supports commitment and disclosure owners in providing relevant updates to the following governance stated, the information and data in this report the date of publication.
oversight bodies. covers McDonald’s Corporation and its majority-
owned subsidiaries worldwide during fiscal year Our Franchisees and suppliers are independent
Governance Body Oversight Responsibility Engagement Frequency 2023 (January 1 to December 31). business owners who make decisions for
their own organizations while maintaining
Board of Directors Oversees our business in an honest, fair, Regular engagement, including by its The inclusion of information in this Purpose & core standards for our brand and customer
diligent and ethical manner; reviews our Corporate Responsibility Committee satisfaction. We cannot prescribe solutions for
Impact Report is not an indication that such
strategic direction and objectives; and is (previously named Sustainability & Corporate
information is material in the context of our them. Rather, we work in collaboration to raise
responsible for overseeing our ERM framework. Responsibility), which met four times in 2023.
financial statements, filings with the U.S. awareness and provide tools and opportunities
Senior Leadership team Accountable for leading our Impact Strategy, Ongoing engagement. Securities and Exchange Commission (the “SEC”) to help them manage ESG issues. We work with
including management of ESG-related or other public statements. The data contained suppliers to mutually set objectives and targets,
risks and opportunities to help create long- monitor progress and engage collaboratively on
in this report has not been audited or verified
term value.
by any third party. While such data represents shared innovation opportunities and challenges.
ESG Disclosure Committee Oversees procedures related to the Met six times in 2023, with ongoing informal the best information available at the time of Through self-managed excellence, suppliers
governance of our ESG disclosures, including engagement between meetings. publishing this report, it is subject to certain are encouraged to identify and manage key
external impact reporting. ESG risks and opportunities within their own
limitations related to, among other things, the
data collection processes in place at the time companies and incorporate relevant goals into
Global Sustainability & Provides Corporate Staff leadership, Ongoing engagement.
Social Impact team coordination and support for our global such data was collected. For certain figures their business strategies.
sustainability policies, programs and reporting. throughout this report, the Company changed
its rounding presentation compared to previous Company employees and Company-owned
reports to the nearest tenths decimal, rather and operated restaurants are in our direct
On our website, find out more about our governance, how we build the
than the nearest hundredths decimal. In certain sphere of control. Therefore, many of the
resilience of our business and stakeholder engagement and public policy.
circumstances, this change adjusted previously measures start with Company restaurants,
Please refer to the Company’s filings with the Securities and Exchange Commission, including with a plan to demonstrate success and
reported figures; however, these changes were
its latest Annual Report, for details on risks that could adversely affect business performance, encourage Franchisees to implement the
not significant. Additionally, certain columns and
including the Company’s ability to execute on the initiatives described in this report. same sustainability initiatives.
rows within the statements and tables presented
in this report may not add due to rounding.
On Our Website Forward-Looking Statements

Our approach to each topic is covered in This report contains certain forward-looking
detail on the Our Purpose & Impact pages statements or projections that reflect our
of our corporate website, including the full expectations regarding future events,
scope of our foundational strategies, policies performance and goals and involve several
and approaches. risks and uncertainties. Generally speaking, any
statement in this report not based upon historical
Key Definitions fact is a forward-looking statement. Forward-
• McDonald’s: Our global brand, unless looking statements can also be identified by the
specified otherwise. use of forward-looking or conditional words, such
as “could,” “should,” “can,” “enable,” “continue,”
• We/Our/The Company: McDonald’s
“estimate,” “forecast,” “intend,” “look,” “may,” “will,”
Corporation and its majority-owned
“expect,” “believe,” “anticipate,” “plan,” “remain,”
subsidiaries worldwide.
“confident,” “commit” and “potential” or similar
• The System: The Company, its Franchisees expressions. In particular, statements regarding
and suppliers are collectively referred to as the our plans, strategies, prospects, goals and
“System”; also known as McDonald’s “three- expectations regarding our business and industry
legged stool.” are forward-looking statements. You should not
unduly rely on forward-looking statements. These
• Franchisees: Collective group of independent
are not guarantees of performance and speak only
individuals and entities owning and operating
as of the date the statements are made. Factors
McDonald’s restaurants under one of the
that could cause actual results to differ materially
following structures – conventional franchise,
from our expectations are detailed in our filings
developmental license or affiliate. For more
with the Securities and Exchange Commission.
information on the Company’s structure and
Except as required by law, we do not undertake to
scope see our latest Annual Report.
update such forward-looking statements.
• McDonald’s restaurants/Restaurants:
Includes restaurants owned by the Company The following are trademarks of McDonald’s
and its Franchisees. Corporation and its affiliates: McDonald’s,
Happy Meal, Hamburger University, Archways to
Opportunity, Filet-O-Fish, McCafé, McNuggets,
McFish, McFlurry, McBites, Big Mac, Ronald
McDonald House Charities, RMHC, Ronald
McDonald House, Ronald McDonald Family
Room and Ronald McDonald Care Mobile.
Progress Against Our Goals at a Glance
This table provides a brief overview of the progress we’re making toward our goals. For more ON TRACK ACHIEVED CONTINUED ACHIEVEMENT ACHIEVED EARLY
detail on all of our goals and progress statements, please see the chapters later in this report.
TARGET YEAR GOAL STATUS PROGRESS
Animal Health 2024 Broiler Welfare Goal (Multiple Markets): We are committed We are on track to achieve our 2024 Broiler Welfare Commitments across in-scope markets.
to sourcing chickens raised with improved welfare outcomes. As of the end of 2023, in-scope markets represented more than 58% of our global chicken supply.
& Welfare and To achieve this, we have outlined eight specific commitments
These commitments apply to chicken raised for sale at McDonald’s restaurants in Australia, Canada, France,
Responsible for our in-scope markets, which are expected to be fully
implemented by the end of 2024.1
Germany, Italy, Ireland, the Netherlands, Poland, South Korea, Spain, Switzerland, the U.K. and the U.S.
Antibiotic Use
Page 39 2025 Cage-Free Eggs Goal (U.S.): The U.S. has a goal of sourcing As of the end of 2023, McDonald’s USA has achieved its commitment of sourcing 100% cage-free eggs for
100% cage-free eggs. items served on its breakfast menus by 2025 – two years ahead of schedule.
2027 Responsible Antibiotic Use in Chicken Supply Chain Goal Across the in-scope markets, HPCIA use has been eliminated in Australia, Brazil, Canada, Europe, Japan,
(Multiple Markets): Eliminate the use of antibiotics defined South Korea and the U.S., with China expected to comply before the end of 2027.
by the World Health Organization (WHO) as Highest Priority
Critically Important Antibiotics (HPCIAs) to human medicine
from all chicken served in in-scope markets.2
2024 Pork Housing Goal (U.S.): We’re working with pork suppliers As of the end of 2023, more than 96% of our pork purchased in the U.S. comes from suppliers that have
to phase out the use of gestation stalls (small, enclosed pens) phased out the use of gestation stalls for housing confirmed pregnant sows.
for housing 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.
All target years are as of year-end, unless otherwise stated.

ON TRACK ACHIEVED CONTINUED ACHIEVEMENT ACHIEVED EARLY
Climate Action 2030 By the end of 2030, from a 2018 base year, McDonald’s In 2023, the Science Based Targets initiative (SBTi) validated our global 2050 net zero emissions reduction
commits to: target and our adjusted 2030 global emissions target, aligned with the latest guidance to help keep global
Page 16 temperature rises below 1.5°C.3
– Reduce absolute Scope 1 and 2 GHG emissions by 50.4%
from Company-owned and operated restaurants Guided by our climate risk and opportunities insights and driven by our goals, during 2023, we pursued various
and offices. 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.
– R
educe 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.
– R
educe absolute Scope 3 Forest, Land and Agriculture
(FLAG) GHG emissions by 16% and to maintain no
deforestation across its primary deforestation-linked
commodities.
Nature, Forests 2030 Eliminate Deforestation Goal (Multiple Markets): Eliminate We continue our focus on supporting deforestation-free supply chains for our primary commodities: beef, soy
deforestation from our global supply chains, building on (for chicken feed), palm oil, coffee and fiber (used in primary guest packaging).
& Water the progress from our 2020 milestones in highest priority
In aggregate, 99.1% of these primary commodities continued to be sourced supporting deforestation-free
commodities and regions.
Page 25 supply chains in 2023.4
Diversity, Equity 2025 Women in Leadership Goal (Multiple Markets): McDonald’s As of the end of 2023, 44% of leadership roles (Senior Director and above) globally are held by women.5
aspires to increase representation of women in leadership
& Inclusion roles globally (Senior Director and above) to 45%, with an
overall goal to reach gender parity globally in leadership roles
Page 50
(Senior Director and above) by the end of 2030.
2025 Historically Underrepresented Groups in Leadership As of the end of 2023, 33% of leadership roles (Senior Director and above) located in the U.S. are held by
Goal (U.S.): McDonald’s aspires to increase representation of individuals in Underrepresented Groups.6,7
Underrepresented Groups in leadership roles (Senior Director
and above) located in the U.S. to 35%.6
Annual Equal Pay Goal (Multiple Markets): McDonald’s commits Results of the 2023 pay gap analysis demonstrated continuous annual progress: women globally in Company-
to close pay gaps identified in annual equal pay analyses for owned and operated markets were paid, on average, 99.96 cents on the dollar in base pay of what men were
women globally in Company-owned and operated markets paid for similar work. Further, there was no base pay gap disfavoring Underrepresented Groups in the U.S.
and for Underrepresented Groups6 in the U.S. at Staff and These results indicate the Company substantially attained equal pay, and in 2024, intends to close the small
Company-owned and operated restaurant levels. gaps identified in line with our commitment. 6,8

ON TRACK ACHIEVED CONTINUED ACHIEVEMENT ACHIEVED EARLY
Diversity, Equity 2025 Supplier Diversity Goal (U.S.): McDonald’s aspires to As of the end of 2023, our U.S. systemwide spend with diverse-owned suppliers was 26.2%, resulting
increase U.S. systemwide spend with diverse-owned in McDonald’s reaching its 25% diverse-owned supplier aspirational spend goal for the third year in a row.9
& Inclusion suppliers to 25%.
Among other efforts, we aim to increase national investments in diverse-owned media and production
Page 50 companies and content creators for McDonald’s USA and its U.S. Franchisees to 15% by the end of 2024. As of
the end of 2023, McDonald’s USA and its U.S. Franchisees increased such investments to 13.4%.10
continued
Packaging, Toys 2025 Guest Packaging Sourcing Goal (Multiple Markets): We By the end of 2023, we were 86.7% of the way toward our goal. Approximately 97.9% of our primary fiber-based
aim to source 100% of our primary guest packaging11 from guest packaging globally was sourced from recycled or certified sources in 2023. Non-structural components
& Waste renewable, recycled or certified materials. of packaging12 are out of scope.
Page 21
2025 Added Fluorinated Compounds Goal (Multiple Markets): By the end of 2023, 99.5% of our guest packaging items did not contain intentionally added fluorinated
Ensure all primary guest packaging is free from intentionally compounds. For the remaining items, we continue to find and apply alternative coating materials that offer
added fluorinated compounds.13 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.
2025 Guest Recycling Goal (Multiple Markets): We aim to In 2023, approximately 88.3% of restaurants in markets with advanced infrastructure14 offered guests the
implement global and local solutions across our business to opportunity to recycle and/or compost packaging items. In these restaurants, guest packaging is collected in
advance the reduction, reuse, composting and/or recycling customer-facing bins for back-of-house or off-site sorting for recycling or composting, utilizing existing local
of guest packaging, and help create demand for recycled waste infrastructure systems.
materials.
2025 Plastic Reduction in Happy Meal Toys Goal (Multiple As of the end of 2023, we reduced virgin fossil fuel-based plastic in Happy Meal toys by 63.7%,
Markets): Drastically reduce plastics in Happy Meal toys an improvement from the 47.8% reduction achieved in 2022.
around the globe and transition to more sustainable
Achieving this goal is expected to result in continuous reduction in virgin fossil fuel-based plastic
materials.15
used to make Happy Meal toys. We have been increasing the use of more sustainable plastics, decreasing our
dependence on virgin resources.
Community 2025 Youth Opportunity Goal (Multiple Markets): Reduce As of December 2023, we have achieved our Youth Opportunity goal ahead of our target year.
barriers to employment for 2 million young people. To date, 2.2 million young people have participated in training programs and/or been hired in McDonald's
Impact & Company-owned and operated or participating Franchisee restaurants.16
Philanthropy
Page 65

Notes Black, Indigenous, Asian or Pacific Islander, people of Hispanic or Latino/a/x 10 Marketing Investment Spend (National Diverse-Owned Media, Production fluorine from packaging. Please refer to our Nature, Forests & Water web page
descent, or people having a combination of these identities or attributes. Companies and Content Creators): for additional definitions. Exclusions: Primary fiber-based packaging in food
1 Broiler welfare: These commitments apply to chickens raised for sale at packaged off-site of McDonald’s restaurants, tray liners and limited locally
McDonald’s restaurants in Australia, Canada, France, Germany, Italy, Ireland, 7 Data includes U.S. paid employees only. This data reflects U.S. employees Paid Media investment represents contracted dollars with suppliers. sourced items.
the Netherlands, Poland, South Korea, Spain, Switzerland, the U.K. and the U.S. who voluntarily disclosed race/ethnicity information. This data was obtained
from two different collection processes which was then reconciled and The classification of media, production companies and content creators as 14 Markets with advanced infrastructure: Mature waste and recycling
Russia has been removed from the scope of this goal based on our 2022 exit
integrated. Due to rounding, some totals may not correspond with the sum diverse-owned suppliers is determined by both self-certification and third- infrastructure at a national level that has (1) recycling infrastructure network
from this market.
of the separate figures. party certification. across the entire market, (2) multiple materials being recycled within this
2 Chicken antibiotic use: Markets covered by this goal include Brazil, Canada, national infrastructure network, (3) existing legislation on recycling and (4) high
8 Underrepresented Groups Pay Gap Analysis Results (U.S.): The analysis Due to rounding, some totals may not correspond with the sum of the
Japan, South Korea, the U.S., Australia, China and Europe. For the purposes customer awareness of waste and recycling. At the end of 2023, that included
is conducted on U.S. employees who voluntarily disclosed race/ethnicity separate figures.
of this goal, Europe includes Austria, Azerbaijan, Belgium, Bulgaria, Croatia, 21 markets where McDonald’s operates.
the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, information.
11 Packaging. Scope: Inclusive of all markets for our fiber-based packaging and
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Moldova, 15 Toys. Scope: Inclusive of all toys. Fiber-based toys or fiber components in the
The following countries are included in the analysis: the U.S., Canada, France, Happy Meal book and toy packaging. For our plastic-based packaging, all
the Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, toys: 100% certified fiber required. All other materials: McDonald’s ambition
Germany, the U.K., Australia, New Zealand, Czech Republic, Slovakia, Ukraine, markets are included except for Israel, Latin America and Turkey. Renewable
Spain, Switzerland, Sweden, the U.K. and Ukraine. As of December 2023, is to reduce the use of virgin fossil fuel-based plastics, offer more sustainable
Poland, Austria, Belgium, Switzerland, Netherlands, Spain, Italy, Portugal. In sources refers to material that is composed of biomass from a living source
Belarus, Bosnia & Herzegovina and Kazakhstan have been removed from the toys by the end of 2025 and not manufacture electronics and batteries in
addition to these countries, descriptive analysis without statistical modeling and that can be continually replenished. Renewable applies to plastics only, not
scope of this goal based on our exit from those markets. Happy Meal toys globally. For bio- and plant-based plastics to be considered
has been conducted over the employees in the following countries: Singapore, fiber. Source: ISO 14021:2016 for plastic, ASTM 6866 or ISO 16620-2. Fiber-based
sustainable for McDonald’s, a minimum of 60% of plastic weight is required to
Hong Kong, UAE (Dubai) and Ireland. These countries have been excluded from packaging made from 100% recycled sources must be third-party verified,
3 McDonald’s SBTi-validated target in full: come from recycled or renewable content or a combination of recycled and
the statistical modeling due to insufficient headcount. High-level U.S. roles unless certified under a Chain of Custody Forest Management standard.
renewable content, though in many practical applications we anticipate that
• McDonald’s Corporation commits to reduce absolute Scope 1 and 2 GHG (VP+) are excluded from the U.S. dataset both for U.S. and Global results. McDonald’s requires all wood fiber sourced from Argentina, Cambodia, China,
percentage will be much higher. The remaining 40% may be conventional
emissions 50.4% by 2030 from a 2018 base year. Indonesia, Laos, Malaysia, Russia and Vietnam to be Forest Stewardship
fossil fuel-based material. These thresholds were developed in conjunction
9 % Spend Through U.S. System With Diverse-owned Suppliers: Council® (FSC®) certified or FSC® controlled wood sources with full chain of
with input from NGOs, external manufacturing partners and scientists, and
• McDonald’s Corporation also commits to reduce absolute Scope 3 energy U.S. systemwide spend is inclusive of spending by McDonald’s and its U.S. custody certification. Perfluorinated compounds are known to be historically
based on an assessment of sustainable toy and packaging industry leaders
and industrial GHG emissions from purchased goods and services, fuel Franchisees. “Other” includes the following categories: Veteran-owned, Native persistent in the environment. McDonald’s commits to not intentionally adding
so that our targets reflected current sustainable engineering capabilities to
and energy-related activities, upstream transportation and distribution, American-owned, Disabled-owned, LGBTQ+-owned, and other unidentified fluorinated compounds through our processes, but fluorinated compounds
maintain safety and functionality. Our efforts will result in an approximate
waste generated in operations, end-of-life treatment of sold products, and categories, including unidentified Minority (MBE)-owned. present in the local environment make it difficult to remove all traces of
90% reduction in virgin fossil fuel-based plastic use against a 2018 baseline.
franchises 50.4% within the same timeframe. fluorine from packaging. Please refer to our Nature, Forests & Water web page
This figure includes supplier spending by all restaurants, whether operated by Fiber-based packaging made from 100% recycled sources must be third-
for additional definitions. Exclusions: Primary fiber-based packaging in food
• McDonald’s Corporation commits to reduce absolute Scope 3 FLAG GHG McDonald’s or by Franchisees. Further, this figure is inclusive of U.S. Company- party verified, unless certified under a Chain of Custody Forest Management
packaged off-site of McDonald’s restaurants, tray liners and limited locally
emissions 16% by 2030 from a 2018 base year. McDonald’s Corporation also owned restaurant spend, Supply Chain, Restaurant Development, Marketing, standard. Source: ISO 14021:2016. McDonald’s requires all wood fiber sourced
sourced items.
commits to maintain no deforestation across its primary deforestation- Legal, Global Technology, Workplace Solutions, Global Impact, Finance, Global from Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and Vietnam
linked commodities. People and other corporate functions. This figure also includes purchases 12 Non-structural components of packaging vary based on the packaging but to be Forest Stewardship Council® (FSC®) certified or FSC® controlled wood
made by Franchisees for advertising, restaurant development, technology, may include adhesives, inks, overprint varnishes, retention agents or binders, sources with full chain of custody certification. The thresholds described above
4 Calculated as the aggregated volumes of beef, soy sourced for chicken feed, do not include the presence of adhesives, glues, inks, paints and coatings.
food, distribution, packaging, equipment and uniforms. This scope excludes processing aids, impact modifiers, minerals used non-structurally and
palm oil, coffee and primary fiber-based guest packaging that are supporting
non-controllables (Taxes, Utilities, Rent, Aircraft Fuel, Airport Fees, Facility nucleating and clarifying agents. We continue to monitor industry standards
deforestation-free supply chains, as a percentage of the aggregated total 16 This figure is based on actual and, in some cases, extrapolated hiring data
Leases, Donations, Bank Fees and Subscriptions). on these components and opportunities to work toward making any part of our
volumes sourced of these commodities. for the following participating markets: Argentina, Australia, Brazil, Canada,
packaging, including non-structural components, more sustainable.
Our diverse-owned diversity spend figures in the U.S. include both self- China, Colombia, Hong Kong, Italy, Japan, Jordan, South Korea, Mexico, NE
5 Representation of Women – Corporate Staff: Global; Senior Director and India, Portugal, Spain, Switzerland, the U.K. and the U.S. McDonald’s collects
certified and formal industry-recognized certification and Tier 1 and Tier 2 13 Fluorinated Compounds. Scope: Inclusive of all markets except for Israel,
Above, and All Corporate Staff: data from McOpCo and participating Franchisees, but extrapolates where it
spend. Tier 1 suppliers are those from whom McDonald’s buys directly. Tier 2 Latin America and Turkey, and Happy Meal book and toy packaging. Renewable
Data includes aggregate numbers from Australia, Austria, Belgium, Canada, does not have access to the underlying data globally. Additional markets that
suppliers are those with whom our suppliers do business. sources refers to material that is composed of biomass from a living source
Czech Republic, France, Germany, Italy, the Netherlands, Poland, Portugal, provide training data include Argentina, Austria, Brazil, Colombia, Denmark,
and that can be continually replenished. Renewable applies to plastics only, not
Slovakia, Spain, Switzerland, Ukraine, the U.K. and the U.S. Corporate Additionally, the gender diversity figure excludes women from Underrepresented France, Germany, Italy, Jordan, Mexico, NE India, the Netherlands, Panama,
fiber. Source: ISO 14021:2016 for plastic, ASTM 6866 or ISO 16620-2. Fiber-based
employees who support our Developmental Licensees are also included. Data Groups, who are reflected in the racial/ethnic demographic data. Switzerland, the U.K. and the U.S.
packaging made from 100% recycled sources must be third-party verified,
was obtained through various means, including informal identification and
unless certified under a Chain of Custody Forest Management standard.
voluntary self-disclosure. Diverse-owned suppliers refers to businesses that are 51% owned, managed
McDonald’s requires all wood fiber sourced from Argentina, Cambodia, China,
and controlled by women and/or Black, Hispanic, Asian, Indigenous, Veteran,
Indonesia, Laos, Malaysia, Russia and Vietnam to be Forest Stewardship
6 In the U.S., the term “Underrepresented Groups” generally means people who LGBTQ+ and disabled persons or people having a combination of these
Council® (FSC®) certified or FSC® controlled wood sources with full chain of
identify as Black, Indigenous, Asian or Pacific Islander, or otherwise as people identities or attributes.
custody certification. Perfluorinated compounds are known to be historically
of color, people of Hispanic or Latino/a/x descent, people with disabilities,
Due to rounding, some totals may not correspond with the sum of the separate persistent in the environment. McDonald’s commits to not intentionally adding
people who identify as LGBTQ+, people from religious minorities, or people
figures. fluorinated compounds through our processes, but fluorinated compounds
having a combination of these identities or attributes. For purposes of
present in the local environment make it difficult to remove all traces of
McDonald’s reporting, including with respect to Human Capital Metrics and
Equal Pay, “Underrepresented Groups” is defined as people who identify as
Our
OurPlanet
Planet
Our success is closely interlinked with the
health of shared natural resources, which
form the foundation of our agricultural
supply chains. As such, to continue feeding
the communities we serve for generations
to come, we recognize we need to protect
our planet and manage our impacts.
We’re acting now to deliver on our

climate ambitions, protect our global
natural resources, increase renewable
energy usage, reduce waste and
transition to more sustainable packaging
and toy materials. We have created a
strategy that puts the planet first, with
targets validated by the Science Based
Targets initiative (SBTi) that will drive us
toward net zero emissions by 2050 and
a commitment to safeguard forests and
natural ecosystems. IN THIS SECTION
16 Climate Action
21 Packaging, Toys & Waste
25 Nature, Forests & Water
Climate Action
Our 2023 Performance
GHG Emissions (Metric Tons Carbon Dioxide Equivalent (CO2e))1
We are taking action on We believe that reducing emissions

and adapting to climate change
climate and transforming Scope 1 Scope 2 (Market-based) Scope 3
is critical to helping improve
our food systems to help
them be more resilient for
the resiliency of the McDonald’s
System. We work toward our climate
6% reduction 38% reduction 4% reduction
action ambitions by focusing on from 2018 from 2018 from 2018
the future.
reducing emissions in restaurant 2023: 100,264 2023: 224,964 2023: 59,929,320
operations, engaging suppliers to 2018 (Baseline): 106,963 2018 (Baseline): 364,985 2018 (Baseline): 62,354,135*
reduce emissions in supply chains,
strengthening our business resilience
and using our voice to advocate for
collective transformation.
* These 2018 baseline Scope 3 emissions were updated in 2024 to reflect more complete product volume inputs and the
inclusion of Category 7 Employee Commuting emissions, which were first included for baseline and current reporting in 2023.
Our Strategy in Brief We continue to implement our strategy • Collaborating to drive and advocate for
through various actions, including: change: Beyond our System, we are using
Climate change is one of the biggest our business’ scale to work with industry,
• Restaurants and offices: We are driving a
challenges of our time. Natural disasters and governments, NGOs and others to advocate
transition to more renewable energy while
extreme weather patterns pose increased risks for climate action initiatives.
identifying opportunities to enhance energy
to food supply resilience and communities
efficiency by design in our restaurants and
around the world, including those from which Read more about our Climate Action
the equipment we use, such as by identifying
we operate and source. strategy and our approach to responsible
lower-impact refrigerant solutions. We are
sourcing on our website. Additionally,
We have a unique opportunity as a global brand accelerating circularity to help reduce the
see our 2023 Climate Resiliency Summary
to mobilize the entire McDonald’s System – the impact of our guest packaging and waste,
for more comprehensive disclosure on our
Company, Franchisees and direct and indirect and designing décor for greater circularity
climate approach and progress.
suppliers – to catalyze change. Working with in our restaurants. These efforts are also
the McDonald’s System, we are helping reduce supported by strategic supply chain actions
the climate impact of our restaurants and in support of climate action. Climate Resiliency
food systems. • Supply chain: We are engaging suppliers When it comes to climate action, we take a
to set targets that support emissions targeted approach, using risk management
We aim to embed our climate goals across our
reductions within their operations and processes to identify, prioritize and address
operations and are prioritizing actions in the
supply chains, and that align with our climate-related risks and opportunities that
most carbon-intensive aspects of Company-
own Scope 3 SBTi goal. Together with our could directly or indirectly impact our business.
and Franchisee-owned and operated
suppliers and other relevant stakeholders, We have set out the key levers we will need to
restaurants and our supply chain.
we are accelerating and scaling farm use to achieve our latest climate ambitions.
projects to help reduce emissions, with
a focus on regenerative agriculture, farm We articulate some of our climate risks,
management and deforestation elimination opportunities and levers in our 2023 Climate
consistent with our Commitment on Forests Resiliency Summary.
and Natural Ecosystems. We also encourage
our suppliers to reduce their facilities’
emissions and source renewable energy.
Our Net Zero Targets support and enabling conditions and policies Guided by our climate risk and opportunities Examples of Our Efforts Across the Globe
from industry peers, NGOs and government insights and driven by our goals, during 2023,
Our markets are leading on innovation to
In 2018, we set targets, approved by the SBTi, on all levels. Among other efforts, we intend to we pursued various actions to help reduce
reduce emissions and enhance the customer
to reduce greenhouse gas (GHG) emissions in continue focusing on: emissions and move our net zero strategy
experience related to their restaurants.
line with a 2˚C warming scenario. Since then, forward – from enhancing how we design
• Adding renewable energy to the grid, For example, as of 2023:
as science has evolved, so have our targets. In and power restaurants to encouraging more
including through Virtual Power Purchase
2023, the SBTi validated our global 2050 net zero sustainable farming techniques. We also • In Sweden, 55 charging stations are offered
Agreements (VPPAs).
emissions reduction target and our adjusted continued to make progress in other areas that in McDonald’s restaurants across the country.
2030 global emissions target, aligned with the • Scaling regenerative agriculture practices can support our climate goals, for example, To help people refuel themselves and their
latest guidance to help keep global temperature within our supply chain. supporting deforestation-free supply chains and electric vehicles (EV), restaurant signposts
rises below 1.5°C. 2 finding more ways to reduce the impact of our were updated, creating versions of classic gas
• Contributing to deforestation-free supply
guest packaging. station signs that also feature the price of our
chains for our primary commodities through
Our 2030 Emissions Target our sourcing actions.
Big Mac® sandwich and Happy Meal®.
By the end of 2030, from a 2018 base year,

More Sustainable Restaurant • In São Paolo, Brazil, a 24-hour restaurant is
• Using our voice to advocate for climate-
McDonald’s commits to reduce: positive policies globally. Development being built from wood and recycled materials
using innovative, low-energy construction
• Absolute Scope 1 and 2 GHG emissions by With two of our climate targets focused on methods. The completed space will feature
50.4% from Company-owned and operated Our Performance reducing restaurant-related emissions, how recycled material walls and floors, compost
restaurants and offices. we operate and design our restaurants bins and a living roof to help naturally regulate
The figures below reflect our 2023 GHG
• Absolute Scope 3 energy and industrial GHG represents a key opportunity for progressing temperature and humidity. Thermal insulation,
emissions relative to our 2018 base year.
emissions by 50.4% from Franchisee and toward net zero by 2050. We are evaluating efficient equipment and solar-powered,
Company-owned and operated restaurants, ways to update existing restaurants for lower automated LED lighting will reduce energy
GHG Emissions (Metric Tons CO2e)1 environmental impact while embedding
and the facility, logistics and plastic packaging use, while an EV charging point and parking for
emissions in our supply chain. sustainability considerations further into bikes and e-bikes will promote more lower-
Emissions 2018 (Baseline) 2023
our new-build processes. emission customer transportation.
Scope 1 emissions 106,963 100,264
• Absolute Scope 3 Forest, Land and Agriculture
(FLAG) GHG emissions by 16% and to Scope 2 emissions 364,985 224,964
maintain no deforestation across its primary (market-based)
deforestation-linked commodities. Scope 3 emissions 62,354,135* 59,929,320
Achieving these ambitions will require continued

and immediate action throughout our own
business and across our full value chain – * These 2018 baseline Scope 3 emissions were updated in 2024 to reflect more
complete product volume inputs and the inclusion of Category 7 Employee
including our Franchisees and suppliers, with Commuting emissions, which were first included for baseline and current
reporting in 2023.
CASE STUDY Renewable Energy Procurement Supply Chain Engagement

Investing in renewable energy and energy Addressing Scope 3 emissions – our largest
A More Circular Approach shutters and suspensions have been made efficiency is a key lever of our climate strategy. source of emissions – requires buy-in from our
from repurposed cardboard, while coffee We enter into VPPAs, where appropriate, to help supply chain. We require our global beef and
to Restaurant Design contribute to adding more renewable energy to chicken suppliers to commit to setting science-
bean waste has been incorporated into
We are continuously evolving the customer McCafé® tabletops. the grid. based targets validated by the SBTi. We are
and crew experience, including the way we currently supporting dairy and cheese suppliers
To hold ourselves accountable for progress, Since 2019, McDonald’s has signed multiple to do the same, or to set equally ambitious third-
build and furnish our spaces. In December
we engaged sustainability consultancy large-scale renewable energy VPPAs that will party-certified targets. Additionally, as of 2023,
2023, we debuted circular restaurant décor
Anthesis to help create a measurement help add new renewable energy to the U.S. grid. our independent logistics suppliers have set
in two French restaurants, testing innovative
index that tracks the circularity of our global The projects we have contracted add renewable SBTi-approved science-based targets.
solutions that balance visual impact
restaurant décor. As a result of the features energy through solar and wind technologies
with sustainability.
we trialed in France, we improved our score and are operational in Texas, Illinois, Oklahoma
The restaurants – in Carbonne and La from 14% to 53%. It’s progress we’re proud and Louisiana. We have invested in additional
Guerche de Bretagne – feature décor of, but we’re not stopping there – our new projects that we expect to become operational
and furniture that have been specifically 2024 pilots will see us also introduce more in the coming years.
designed for easy disassembly. Held sustainable foams and upholstery.
together with mechanical features rather
than glue, pieces can be broken down
by raw material type at their end of use,
enabling easier recycling or reuse. The pilot
restaurants also feature 80% Programme
for the Endorsement of Forest Certification
(PEFC) wood, energy-efficient lighting and
100% recycled content for plastic used in
tabletops and low stools (at least 80% for
chairs). We have removed laminates and
powder coatings from furniture and décor
elements to facilitate greater recycling, as
well as reuse of steel components. And,
because we believe in finding ways to
give used materials a second life, window
We also continue to identify opportunities to Next Steps

participate in external groups that aim to shape
the future of climate action and accounting for We will continue to progress toward net zero
our industry and supply chain. This includes the emissions globally by 2050. This includes
Greenhouse Gas Protocol’s Technical Working working to establish roadmaps for key markets
Group on Land Based Emissions, which we and business functions. At the same time, we
joined to help establish standards and guidance will look for more opportunities to act globally
for measuring the impact of emissions from and regionally, using the scale of our System to
farming, forestry and other land-based activities. drive positive change.
or more information on how we engage in

F
industrywide collaborations and advocate
for solutions that will enable progress on our
climate strategy for our full System, please
see our Climate Action web page.
As well as encouraging target setting, we’re

working with suppliers and farmers across
the world to help them scale regenerative
agriculture practices and eliminate deforestation
consistent with our Commitment on Forests
and Natural Ecosystems, in ways that can
help improve productivity, build resiliency
to a changing climate and conserve
natural ecosystems.
ead more about our approach to

R
regenerative agriculture on page 37
and on our Responsible Sourcing web page.
Packaging, Toys & Waste

Innovating for Circularity
We are working to Our packaging, toys and waste Materials We Use for Primary Materials We Use for Happy
strategies are designed to help keep
accelerate solutions that Guest Packaging Meal Toys
communities clean, help protect
help reduce waste while the planet for future generations
86.7% of primary guest As of the end of 2023, 63.7%
also transitioning to more and support the Company’s long-
packaging3 was from renewable, reduction in virgin fossil fuel-based
sustainable packaging term business resilience. To achieve
recycled or certified sources plastic for Happy Meal toys globally
this, we’re evolving our packaging –
and toy materials. redesigning some of our most iconic
in 2023. versus 2018, an improvement from the
47.8% reduction achieved in 2022.
products to eliminate unnecessary
packaging, identifying alternative 97.9% of our primary
materials and increasing opportunities Solutions for Reducing, Reusing and
fiber-based guest packaging
for recovery. globally was sourced from Recycling Guest Packaging
recycled or certified sources.
88.3% of restaurants in markets with
advanced infrastructure4 offered
Paper straws and guests the opportunity to recycle and/
wooden cutlery now deployed or compost packaging items, with
across 50 markets. customer-facing bins for back-of-
house or off-site sorting. This is then
managed using existing local waste
Most EU markets are infrastructure systems.
transitioning from plastic to
fiber-based packaging. Efforts to Avoid Intentionally Added
Fluorinated Compounds
Launched cups across the U.S. 99.5% of our guest packaging items
that are sourced from recycled did not contain any intentionally added
and bio-based materials. fluorinated compounds in 2023.
Our Strategy in Brief Our Performance Innovating Materials Packaging Innovation Efforts
To identify opportunities for transitioning our
We’re committed to taking steps to help As a global brand with representation in over 100 GOAL existing materials to new and more sustainable
reduce waste and advance a circular countries, there is no “one size fits all” approach
We aim to source 100% of our primary alternatives in pursuit of progress toward our
economy. For example, we’re investing to packaging and recycling solutions, as local
2025 goals, many of our markets and suppliers
in strategies and working collaboratively waste management infrastructure and customer guest packaging3 from renewable,
have worked to drive locally relevant packaging
with other stakeholders to help address preferences make each area unique. That’s why recycled or certified materials by the
innovations across the globe.
systemic challenges related to recycling we pursue opportunities on a localized basis end of 2025.
infrastructure, demand for recycled materials to help identify appropriate solutions for each
Following a successful pilot, in 2023, we
and development of new packaging and geography – all grounded in a commitment to
PROGRESS launched clear polypropylene beverage cups
toy materials. We continue to evaluate and advancing the Company’s global goals.
across the U.S. that contribute to the sourcing
consider the role reusables can play in our By the end of 2023, we were of circular and bio-based materials.6 Our
restaurants around the world, alongside other We set our circularity strategy, inclusive of a
86.7% of the way toward our goal. goal is that these cups can be recycled into
circularity solutions and in compliance with series of goals unique to our business model,
Approximately 97.9% of our primary new products, contributing to a circular
applicable laws regarding reusable packaging. to guide our efforts, with expert advice from
several stakeholders, such as World Wildlife fiber-based guest packaging economy.7, 8 We plan to continue rolling out
globally was sourced from recycled additional items, such as lids, sundae cups,
Fund (WWF) and our packaging supplier tms, to
or certified sources in 2023. Non- breakfast platters and souffle cups over the
help ensure our targets aligned with the latest
next few years.
science and stakeholder expectations. We track structural components of packaging5
progress against our goals through supplier and are out of scope. When it comes to developing alternatives for
restaurant reports on packaging composition,
packaging liners, we are investing in technology
usage and waste. As we continue to enhance our Percentage of Primary Guest Packaging and supply chain capabilities and collaborating
methodology and data quality, we can expect Sourced From Renewable, Recycled or with our suppliers to do so. To replace virgin
annual progress figures to adjust in future Certified Sources by Material fossil fuel-based plastics, we are gaining insight
reporting cycles.
into front-running technologies, such as mineral
2023
coatings for cups, and the potential for such
As well as tracking against our goals, throughout Percentage of primary guest packaging from 86.7%
renewable, recycled or certified sources technologies to be applied at scale.
2023, we continued finding ways to streamline
materials used in overall guest packaging and Percentage of primary fiber-based guest 97.9% We continue to develop and deploy renewable
to reduce use where possible. For example, our packaging globally was sourced from recycled
coating alternatives on fiber-based salad boxes
Nordic markets (including Denmark, Finland, or certified sources
in Europe. In 2023, Austria, the Baltics and the
Norway and Sweden) adopted a “no lids on cold
Netherlands transitioned to this solution from
drink cups” policy for dine-in customers.
the previously used polyethylene (PE)-coated
salad boxes.
We continue to focus on reducing virgin fossil Reducing Plastics in CASE STUDY

fuel-based plastics for small items such as
Happy Meal Toys
straws, cutlery, bags and stirrers.
GOAL Fiber-Based Packaging • Wooden stirrers have been deployed in
Happy Meal Toy Innovation most markets globally.
Drastically reduce plastics in As we strive to meet our goal, we are working
In 2023, we introduced an increased range of • In Japan, we have transitioned to a fiber-
with suppliers to test new technologies that
materials that support our goal around Happy Happy Meal toys around the globe based solution for salad boxes.
can scale globally. Some of our markets are
Meal toys, including bio-based plastics produced and transition to more sustainable
exploring transitioning from plastic to fiber- • In Western Australia, we regionally
from renewable sources as well as paper. materials by the end of 2025.9 based packaging. For example, beginning launched molded fiber cold lids.
Programs that used paper were developed, such
in 2023:
as Karma’s World activity journals and Pokémon • We are using paper straws in markets such
PROGRESS
trading cards. Green PE (bio-based PE produced • We have launched small-scale testing of as Australia, Canada, Hong Kong, Japan,
from renewable raw material sugar cane) was As of the end of 2023, we reduced fiber-based packaging in Belgium, Ireland New Zealand, the Philippines, Singapore
successfully used in programs like Adopt Me! virgin fossil fuel-based plastic and Portugal with initial insights being and South Korea.
“Make a Pet,” which was a customizable pet made in Happy Meal toys by 63.7%, an gathered through these pilots.
• The Czech Republic, Denmark, Finland and
from a combination of Green PE and paper. improvement from the 47.8% • In the EU, we are working to incorporate Norway have transitioned to paper cups
reduction achieved in 2022. recycled materials into fiber-based from plastic.
To continue driving innovation toward our 2025
packaging categories such as carryout
ambition of reducing virgin plastics in Happy
Achieving this goal is expected to result in bags, cups, carriers, napkins, cartons, hot
Meal toys, we have begun working with our
continuous reduction in virgin fossil fuel-based cups and sleeves.
supplier tms to utilize its recently established
“Future Lab” – a facility dedicated to testing plastic used to make Happy Meal toys. We have • Fiber, wooden and pressed paper cutlery
innovative packaging solutions. Future Lab was been increasing the use of more sustainable are now deployed across 50 markets,
established with a dual focused approach: plastics, decreasing our dependence on including parts of the EU and the U.K.
virgin resources. Canada and Hong Kong are also using
• Materials lab: Identify new sustainable
fiber-based cutlery.
materials, suppliers and production
techniques, as well as vendor capabilities.
Qualify new materials and research
production functionality.
• Concept research: Ideate new concepts that
are fun, durable and deliver high perceived
value with approved materials. Create new play
experiences that support sustainability.
Advance the Reduction, Reuse or Across the globe, waste and recycling Fluorinated Compounds Next Steps
infrastructure differs significantly. Some
Recycling of Guest Packaging in Our Packaging McDonald’s will continue finding ways
areas are operating within advanced
infrastructure, while in others the infrastructure to innovate our packaging, as well as
GOAL GOAL
is still developing. In areas where recycling opportunities for end-of-life management, to
We aim to implement global and infrastructure is a challenge, we’re focusing on Ensure all primary guest packaging help keep waste out of nature. The Company
local solutions across our business addressing systemic constraints and advocating is free from intentionally added will continue our ambition to use renewable,
for greater investment in material separation, recycled and certified materials solutions for
to advance the reduction, reuse, fluorinated compounds by the end
sorting, recovery and recycler acceptance. our guest packaging portfolio and other areas
composting and/or recycling of of 2025.10 to encourage a circular economy.
guest packaging, and help create Exploring the Role of Reusable Packaging
demand for recycled materials by the PROGRESS
In recent years, we have been exploring the
end of 2025. potential role and impact of implementing By the end of 2023, 99.5% of
reusable guest packaging in McDonald’s our guest packaging items did
PROGRESS restaurants. Although reusable guest packaging not contain intentionally added
In 2023, approximately 88.3% may be part of the solution, additional tools, fluorinated compounds. For the
such as recycling, recovery and reduction, must
of restaurants in markets with remaining items, we continue to
continue to be part of overall guest packaging-
advanced infrastructure4 offered related waste reduction strategies. Only with
find and apply alternative coating
guests the opportunity to recycle the right mix of solutions, can McDonald’s – and materials that offer the right grease-
and/or compost packaging items. In the informal eating out sector more broadly – resistant barriers. In the U.S., we
these restaurants, guest packaging is achieve packaging circularity. have removed all intentionally added
collected in customer-facing bins fluorinated compounds from our
As we move forward, we will look to further
for back-of-house or off-site guest packaging.
develop our reuse strategy, advocating for
sorting for recycling or composting, feasible solutions that can help advance
utilizing existing local waste evidence-based circularity strategies for McDonald’s guest packaging materials comply
infrastructure systems. McDonald’s and the wider industry. with applicable law and are verified through
chemical testing.
Nature, Forests & Water

99.1% of Our Priority Commodities Are Sourced
Supporting Deforestation-Free Supply Chains
We take a holistic This work is intricately connected
to our efforts across climate action,
approach to helping Beef 98.8%: The Company Coffee 99.9%: The Company
responsible sourcing and human rights. requires that all beef sourced for requires coffee sourced for McDonald’s
protect natural resources, McDonald’s products meets the restaurants from Honduras, Indonesia
the communities that rely Natural resources – like healthy
requirements of our Deforestation- and Vietnam to be Rainforest Alliance
soils, grasslands and forests – are
on them and the future of particularly important to the farming
Free Beef Procurement Policy, with Certified™12 and for ground and whole
more detailed requirements for high bean coffee from other countries to
our business. systems and communities that
priority regions.11 be sourced from Rainforest Alliance,
produce food for McDonald’s menu.
We aim to help build resilience Fairtrade International certified or from
Recognizing this, we have refreshed
with suppliers and farmers to help Soy (for chicken feed) 100%: a McCafé Sustainability Improvement
our Commitment on Forests and
preserve natural ecosystems, enhance The Company requires all soy for Platform (SIP) program.
Natural Ecosystems to better reflect
biodiversity and safeguard water. chicken feed for McDonald’s products
evolving best practices and standards Fiber-based primary guest
to be sourced from low priority regions
and our progress to safeguard packaging 98.6%: The Company
or, if from high priority regions, to
natural ecosystems. requires that fiber for primary guest
support responsible soy production.
We support responsible soy production packaging at McDonald’s restaurants
through the purchase of Round Table be sourced from Forest Stewardship
on Responsible Soy (RTRS) credits to Council® (FSC®) chain of custody
cover estimated soy in feed for chicken certification or the Programme for the
outside of the U.S. and Canada.13 Endorsement of Forest Certification
(PEFC) for deforestation.14
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.15
Our Strategy in Brief See our Nature, Forests & Water web page
GOAL
Soy (for Chicken Feed)
for definitions of “eliminate deforestation,”
As one example of our work to source
We aim to safeguard natural ecosystems, “deforestation,” “high priority regions,” “low Eliminate deforestation from our sustainable soy for chicken feed, the McDonald’s
including forests, throughout our supply chains priority regions” and “supporting deforestation- global supply chains by the end UK & Ireland markets map and report on their
while simultaneously building resilience for our free supply chains” for the purposes of
of 2030, building on the progress embedded soy footprint annually as part of our
business, producers and the planet. We’re also this report.
taking action to help protect biodiversity and from our 2020 milestones in highest work to address conversion. They then utilize
priority commodities and regions. this information to support tailored supplier
respect human rights. We stress the importance
of water stewardship to suppliers and in our Our Performance and Actions engagement. Additionally, McDonald’s UK &
We continue our focus on supporting Ireland is among the founding signatories of the
restaurant practices. deforestation-free supply chains for our UK Soy Manifesto to work collaboratively across
Our Commitment to Supporting primary commodities: beef, soy (for chicken
To adapt our value chain to – and mitigate the industry to support resilient and responsible
Deforestation-Free Supply feed), palm oil, coffee and fiber (used in primary supply chains.
against – climate change, we prepare for
Chains for Primary Commodities guest packaging).
climatic events that could impact the natural
Palm Oil
resources we depend on, as well as transition
In 2024, we refreshed our Commitment on PROGRESS
risks associated with the shift to a low-carbon Our volumes of physical RSPO-certified palm
Forests and Natural Ecosystems to better reflect
economy. Our targets for climate action In aggregate, 99.1% of these primary oil increased from 13% in 2016 to 72.5% in 2023
the evolution of industry best practices and
consider estimated emissions from land use commodities continued to be sourced (25% Segregated, 47.5% Mass Balance), with the
standards and our progress to safeguard natural
change – such as deforestation for farmland – remaining 27.5% as RSPO Book and Claim Credits.
ecosystems. In it, we outline our commitment supporting deforestation-free supply
which are modeled using our climate impact
to eliminate deforestation16 and address chains in 2023.18
tracking system. Forest Positive Coalition
conversion17 in our global supply chain by 2030,
for commodities and regions where we can In 2022, we joined the Consumer Goods Forum’s
We also encourage others to do their part and See our commodity-specific progress on
deliver the greatest impact – building on our Forest Positive Coalition, a multi-company
help drive industry action at scale through our page 25.
2020 milestones to support deforestation-free initiative to stop commodity-driven deforestation
memberships in collaborative groups like the
supply chains for our primary commodities. and address global climate change issues across
Forest Positive Coalition, as well as our work
consumer goods manufacturers and retailers.
in international bodies such as the Global
In line with our commitment, we are collaborating As part of our ongoing membership, for the
Roundtable for Sustainable Beef (GRSB) and
with Proforest, WWF and industry groups on second year in a row, we developed a report to
the Sustainable Markets Initiative.
actions to help build positive impact. We are highlight our progress against the coalition’s
also engaging with suppliers to help ensure they key performance indicators (KPIs) and metrics.
ee our website for a more detailed focus
S
understand the commitment and their role in Additionally, in 2023, we became co-leads of the
on our forests, nature and biodiversity and
adhering to the sustainable sourcing policies coalition’s Beef Working Group.
water strategies.
that underscore it.
ead more detail in our Consumer Goods
R
Forum’s Forest Positive Coalition 2023 Report.
CASE STUDY Our Progress on Protecting Evaluating Land Use Change
Nature, Forests and Water In the U.S., McDonald’s joined the Land Use
Change Initiative (LUCI) to begin to address land
Driving a Deforestation-Free Through detailed mapping exercises,
Sustainable Palm Oil use change in our supply chains. This coalition
we also monitor compliance with our
Beef Supply Chain The Company is committed to working with
is a cross-sector collaboration to evaluate the
Deforestation-Free Beef Procurement Policy
condition of remaining U.S. native sod19 and
When it comes to deforestation-free for purchases of cattle that could potentially stakeholders and its supply chain to help
evaluate the drivers and impacts of land use
beef supply chains, we are partnering enter our supply chain from Brazil, Argentina, support development and improvement of
change. We will use the outputs of the LUCI to
strategically to advance supplier efforts. In Paraguay or Australia. With this insight, sustainable palm oil production, and to help
inform our strategy to further address land use
particular, we have teamed up with service we are better equipped to support shared drive delivery of NDPE (no deforestation, no
change in the United States.
provider Agrotools to identify key, farm- deforestation efforts, delivering supplier expansion on peat and no exploitation).
level social and environmental criteria in our training and pursuing other engagement For more on our approach and progress
beef supply chain, and to monitor supplier activities to drive greater human and Alongside Proforest, we recently engaged
toward regenerative agriculture, see page 37
compliance with our expectations. community rights protection and more with one of our major palm oil suppliers,
and our Responsible Sourcing web page.
responsible, data-driven procurement Wilmar, on a series of projects to help
We are focused on purchasing beef from decisions. We are proud that, as a result of improve transparency and sustainability
suppliers that share our dedication to our detailed monitoring and close supplier outcomes for our palm oil supply chain. Next Steps
conserving forests and respecting human engagement efforts, in 2023, 98.8% of Through this collaboration, we have been
We will continue to take steps to help bring
rights. To ensure ongoing alignment, all beef sourced for McDonald’s products engaged in the development of the NDPE
the McDonald’s Commitment on Forests and
together with Agrotools, we conduct supported deforestation-free supply chains. Implementation Reporting Framework
Natural Ecosystems to life. We aim to strengthen
comprehensive monitoring of our Brazilian (IRF), building on progress made to date to
our resiliency by building on our work to date
supply chain to proactively detect and provide an overview of progress for all palm
and engaging in new initiatives to help drive
address instances of: oil mills supporting a refinery. Our work
collective action toward the protection of
will drive greater improvement in NDPE IRF
• Deforestation. forests, human rights and natural ecosystems.
Deforestation and Peat profiles as well as
• Properties associated with forced labor Land and Labor profiles within our supply
or embargoes. chains, including greater engagement with
• Agricultural expansion onto Indigenous smallholders to help improve traceability and
Territories or protected areas. sustainability outcomes.
Notes on these components and opportunities to work toward making any part of our fluorine from packaging. Please refer to our Nature, Forests & Water web page based packaging to the McDonald’s System and all McDonald’s restaurants
packaging, including non-structural components, more sustainable. for additional definitions. Exclusions: Primary fiber-based packaging in food owned and operated by the Company and its Franchisees. In 2021, the primary
1 Consistent with past reporting by the Company, these figures include packaged off-site of McDonald’s restaurants, tray liners and limited locally fiber-based packaging scope was expanded to include plastic alternatives
the impact through 2023 of the Corporate-backed VPPA program in the 6 The development of the cups relies on the “mass balance free attribution” sourced items. such as wood stirrers and cutlery, and paper straws and lids. This broadened
U.S., recognizing that the SBTi is currently assessing the effectiveness of approach, which allows the share of raw materials generated through the scope has resulted in a slight decrease in percent compliance. All volumes of
Environmental Attribute Certificates (EACs) in corporate climate targets to processing of plastic waste and bio-based materials to be accounted for via 11 Beef. Scope: Includes all beef suppliers to the McDonald’s System and their contingency items sourced from suppliers compliant with our standards but
inform its revisions to the net zero standard. Chain of Custody certification through complex manufacturing systems, where raw material suppliers globally and all McDonald’s restaurants owned and not integrated into our data reporting system were counted as non-compliant.
it is processed alongside traditional feedstocks and attributed to plastics. operated by the Company and its Franchisees that sell beef. McDonald’s Countries with regions currently identified as high-deforestation priority
2 McDonald’s SBTi-validated target in full: requires all beef raw material sourced from high-deforestation priority regions regions for fiber include Argentina, Cambodia, China, Indonesia, Laos, Malaysia,
7 Lids and straws are not recyclable. Other similar material items to be launched to comply with McDonald’s Deforestation-Free Beef Procurement Policy and Russia and Vietnam. McDonald’s requires all wood fiber sourced from these
• McDonald’s Corporation commits to reduce absolute Scope 1 and 2 GHG by 2025 include cold lids, breakfast platters, sundae and souffle cups. meet the requirements as outlined in McDonald’s Commitment on Forests regions to be Forest Stewardship Council® (FSC®) certified or FSC® controlled
emissions 50.4% by 2030 from a 2018 base year.
and Natural Ecosystems. Countries with regions currently identified as high wood sources with full chain of custody certification. Exclusions: Primary
8 Facilities that accept these cups for recycling may not be available in all
priority for beef include Brazil, Paraguay, Argentina and Australia. Exclusions: fiber-based packaging in food packaged off-site McDonald’s restaurants; tray
• McDonald’s Corporation also commits to reduce absolute Scope 3 energy areas of the U.S., but our aim is to help expand the acceptance of the cups for
Beef used as secondary ingredients in McDonald’s products, for example, as liners, straws and limited locally sourced items.
and industrial GHG emissions from purchased goods and services, fuel recycling so they can contribute to a circular economy.
flavoring in a sauce.
and energy-related activities, upstream transportation and distribution,
9 Toys. Scope: Inclusive of all toys. Fiber-based toys or fiber components in the 15 Palm oil. Scope: Includes all palm oil (including crude palm oil, palm kernel
waste generated in operations, end-of-life treatment of sold products, and
12 Coffee. Scope: Includes all ground and whole bean coffee, including oil, derivatives and fractions) sourced for McDonald’s restaurants for use
franchises 50.4% within the same timeframe. toys: 100% certified fiber required. All other materials: McDonald’s ambition
decaffeinated coffee, used in espresso-based drinks and coffee brewed at as restaurant cooking oil and all palm oil sourced by McDonald’s suppliers
is to reduce the use of virgin fossil fuel-based plastics, offer more sustainable
McDonald’s restaurants, and all ground and whole bean coffee in McDonald’s- and used directly as an ingredient in a McDonald’s product and listed on the
• McDonald’s Corporation commits to reduce absolute Scope 3 FLAG GHG toys by the end of 2025 and not manufacture electronics and batteries in
branded retail products. Includes all suppliers of coffee to the McDonald’s product’s ingredient statement. Includes all suppliers of products containing
emissions 16% by 2030 from a 2018 base year. McDonald’s Corporation also Happy Meal toys globally. For bio- and plant-based plastics to be considered
System. Market scope includes all McDonald’s restaurants owned and palm oil in the McDonald’s System and all McDonald’s restaurants owned and
commits to maintain no deforestation across its primary deforestation- sustainable for McDonald’s, a minimum of 60% of plastic weight is required to
operated by the Company and its Franchisees that sell coffee, and retail operated by the Company and its Franchisees that use palm oil. All countries
linked commodities. come from recycled or renewable content or a combination of recycled and
outlets selling McDonald’s-branded coffee products. Countries with regions are currently identified as high-deforestation priority regions for palm oil and
renewable content, though in many practical applications we anticipate that
3 Packaging. Scope: Inclusive of all markets for our fiber-based packaging currently identified as high-deforestation priority regions for coffee include all volumes are required to be covered by Roundtable on Sustainable Palm
percentage will be much higher. The remaining 40% may be conventional
and Happy Meal book and toy packaging. For our plastic-based packaging, Honduras, Indonesia and Vietnam. McDonald’s requires all coffee sourced from Oil (RSPO) certification or credits. All RSPO supply chain models applicable
fossil fuel-based material. These thresholds were developed in conjunction
all markets are included except for Israel, Latin America and Turkey. these regions to be Rainforest Alliance Certified. Exclusions: Coffee extracts to RSPO are applicable to McDonald’s ‒ RSPO Identity Preserved (IP), RSPO
with input from NGOs, external manufacturing partners and scientists, and
Renewable sources refers to material that is composed of biomass from a and ingredients used in products such as frappés and coffee in baked goods; Segregated (SG), RSPO Mass Balance (MB) and Book and Claim (BC) ‒ although
based on an assessment of sustainable toy and packaging industry leaders
living source and that can be continually replenished. Renewable applies to coffee in cold brew drinks if they are brewed off-site; coffee extract in ready-to- McDonald’s is committed to increasing traceability by specifying physical
so that our targets reflected current sustainable engineering capabilities to
plastics only, not fiber. Source: ISO 14021:2016 for plastic, ASTM 6866 or drink retail products; and other locally sourced products containing coffee. certification for the palm oil used in the McDonald’s System in the greatest
maintain safety and functionality. Our efforts will result in an approximate
ISO 16620-2. Fiber-based packaging made from 100% recycled sources volumes (IP, SG or MB). Exclusions: Palm oil, palm kernel oil or their derivative
90% reduction in virgin fossil fuel-based plastic use against a 2018 baseline. 13 Soy (for chicken feed). Scope: Includes all soybean volume used in the feed
must be third-party verified, unless certified under a Chain of Custody Forest used as secondary ingredients in McDonald’s products. This is when palm oil is
Fiber-based packaging made from 100% recycled sources must be third- of chicken sourced for McDonald’s products by all chicken suppliers to the
Management standard. McDonald’s requires all wood fiber sourced from used as an ingredient within an ingredient, for example, an emulsifier.
party verified, unless certified under a Chain of Custody Forest Management McDonald’s System and all McDonald’s restaurants owned and operated by
Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and Vietnam
standard. Source: ISO 14021:2016. McDonald’s requires all wood fiber sourced the Company and its Franchisees that sell chicken. Europe refers to Austria,
to be Forest Stewardship Council® (FSC®) certified or FSC® controlled wood 16 “Eliminate deforestation” refers to McDonald’s global pledge to tackle
from Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and Azerbaijan, Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia,
sources with full chain of custody certification. Perfluorinated compounds are deforestation, and all of the social and environmental criteria in our
Vietnam to be Forest Stewardship Council® (FSC®) certified or FSC® controlled Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Latvia,
known to be historically persistent in the environment. McDonald’s commits Commitment on Forests and Natural Ecosystems in our agricultural and
wood sources with full chain of custody certification. The thresholds described Lithuania, Luxembourg, Malta, Moldova, the Netherlands, Norway, Poland,
to not intentionally adding fluorinated compounds through our processes, forestry supply chains. In alignment with the definitions of the Accountability
above do not include the presence of adhesives, glues, inks, paints and Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland,
but fluorinated compounds present in the local environment make it difficult Framework initiative (AFi), we use the term “supporting deforestation-free
coatings. the U.K. and Ukraine. Countries with regions currently identified as high-
to remove all traces of fluorine from packaging. Please refer to our Nature, supply chains” below to more accurately reflect the actions we are taking to
deforestation priority regions for soy include Argentina (Chaco biome), implement, measure and report progress toward our Commitment on Forests
Forests & Water web page for additional definitions. Exclusions: Primary fiber- 10 Fluorinated Compounds. Scope: Inclusive of all markets except for Israel,
Brazil (Amazon and Cerrado biomes) and Paraguay (Chaco biome). Given the and Natural Ecosystems.
based packaging in food packaged off-site of McDonald’s restaurants, tray Latin America and Turkey, and Happy Meal book and toy packaging. Renewable
complexity of soy supply chains, we consider that, unless demonstrated, all of
liners and limited locally sourced items. sources refers to material that is composed of biomass from a living source
McDonald’s sources of soy for chicken feed fall into high-deforestation priority 17 As aligned with Accountability Framework Initiative, conversion refers to:
and that can be continually replenished. Renewable applies to plastics only, not
4 Markets with advanced infrastructure: Mature waste and recycling regions, with the exception of chicken sourced in North America, where soy change of a natural ecosystem to another land use or profound change in a
fiber. Source: ISO 14021:2016 for plastic, ASTM 6866 or ISO 16620-2. Fiber-based
infrastructure at a national level that has (1) a recycling infrastructure network used in chicken feed is locally produced and considered low risk. Exclusions: natural ecosystem’s species composition, structure, or function.
packaging made from 100% recycled sources must be third-party verified,
across the entire market, (2) multiple materials being recycled within this Soy used as an ingredient in McDonald’s products sold in restaurants, for
unless certified under a Chain of Custody Forest Management standard. 18 Calculated as the aggregated volumes of beef, soy sourced for chicken feed,
national infrastructure network, (3) existing legislation on recycling and (4) high example, soy oil.
McDonald’s requires all wood fiber sourced from Argentina, Cambodia, China, palm oil, coffee and primary fiber-based guest packaging that are supporting
customer awareness of waste and recycling. At the end of 2023, that included
Indonesia, Laos, Malaysia, Russia and Vietnam to be Forest Stewardship 14 Fiber. Scope: Primary fiber-based packaging refers to products that are used deforestation-free supply chains, as a percentage of the aggregated total
21 markets where McDonald’s operates.
Council® (FSC®) certified or FSC® controlled wood sources with full chain of to package guest food on premises at McDonald’s restaurants. This type of volumes sourced of these commodities.
custody certification. Perfluorinated compounds are known to be historically packaging includes containers, cups, wraps, bags for food, beverages, napkins,
5 Non-structural components of packaging vary based on the packaging but
persistent in the environment. McDonald’s commits to not intentionally adding folding cartons, clamshells, food service bags, napkins, salad bowls, Happy 19 Native sod is defined by the USDA as: acreage that has never been tilled, or
may include adhesives, inks, overprint varnishes, retention agents or binders,
fluorinated compounds through our processes, but fluorinated compounds Meal cartons, drink carriers and cup carriers. Includes all suppliers of primary- acreage that you cannot prove has been tilled for crop production.
processing aids, impact modifiers, minerals used non-structurally, and
present in the local environment make it difficult to remove all traces of
nucleating and clarifying agents. We continue to monitor industry standards
Food Quality & Sourcing

At McDonald’s, we prioritize making safe,
sustainably sourced meals accessible
globally. We’re committed to reducing
food production impacts by sourcing
ingredients from deforestation-free,
sustainable or certified sources.
Improving animal health and welfare in

our supply chain is also central to our
sustainability strategy. Through more
sustainable ingredient sourcing we are
providing quality food and varied menu
choices to help support the well-being
of future generations.
IN THIS SECTION
30 Food Safety
33 Nutrition & Marketing Practices
36 Responsible Sourcing
39 Animal Health & Welfare and
Responsible Antibiotic Use
Food Safety
Food Safety From Ingredient to Restaurant
Serving safe and quality We embed strict food safety standards We believe that product traceability from ingredient to restaurant is a key step in McDonald’s
and protocols in the Company’s food safety protocols. To help us achieve traceability, we work closely with our suppliers,
food in every single utilizing standards like the Good Agricultural Practices (GAP) certification, the Supplier
processes from food sourcing to
restaurant, each and every menu development, packaging Quality Management System (SQMS) and Distributor Quality Management Process (DQMP).
day, is a top priority and and distribution and the running In addition, all McDonald’s restaurants receive unannounced third-party food safety audits.
long-standing commitment of McDonald’s restaurants. We are
embracing technology and working During 2023:
of McDonald’s. closely with suppliers and external
experts to help improve efficiency and 1,800+ third-party 250+ distribution centers
reduce risks. We share our knowledge audits were performed in 2023 completed third-party food safety
both internally and externally. through the Company’s SQMS, and quality audits in 2023. Over
of which McDonald’s standards 98% were found to be operating
were fully met by over 90% of the consistently with the McDonald’s
food suppliers. DQMP audit standard.
199 farmers globally 60,000+ food safety audits

were certified to McDonald’s were conducted at McDonald’s
GAP standards. restaurants in 2023.
Our Strategy in Brief We execute this strategy through our food safety In 2023, we established and communicated Building on Our Food
work. Our actions help build long-term brand global food safety key performance indicators
We work to source and serve safe food and Safety Culture
trust by focusing on two strategic areas: (KPIs). These included KPIs on topics such as
beverages each day, building trust as we strive public recalls and audit performance, which We believe that running great restaurants
to achieve food safety excellence.
1 Strengthening our food safety culture.
strongly connect with the brand trust. and serving safe food is the basis for building
2 Proactive food safety risk strong brand trust. We embed strict food
Our Global Food Safety Strategy centers on Another global KPI requires that every market
management. safety standards and protocols in the
three operating principles: should establish a Food Safety Risk Mitigation
We are supporting these strategic areas through Company’s processes from food sourcing
1 Customer obsessed: Food Safety is our Plan. These plans will help ensure that each to menu development, packaging and
the periodic improvement of our standards
market remains focused on locally relevant distribution and the running of McDonald’s
#1 priority and is always a focus area. and policies, based on current science and
risks and areas for improvement, based on key restaurants. We are embracing technology and
The safety of McDonald’s food, and industry best practices. We are monitoring and
information such as regulatory developments,
identifying innovations and technology to help working closely with suppliers and external
that of the customers who consume it, existing gaps and supply chain conditions. In
strengthen our systems and drive simplification experts to help improve efficiency and reduce
is imperative. the first year, most markets reported that they risks. We share our knowledge both internally
where possible to help improve behaviors
had established such plans. and externally.
2 One McDonald’s way: Our food safety and performance.
systems and standards, which are based Assessing Digital Systems
Read more about our food safety strategy In 2023, we analyzed the results of a 2022 food
on science and validated by external safety culture assessment and translated
on our website. We are currently evaluating the digital platforms
third parties, are designed to help ensure we use to monitor and measure adherence to the findings into a global food safety culture
a globally aligned approach. our food safety standards. action plan. In 2023, we added a requirement
Our Performance to the SQMS that suppliers are responsible for
3 Committed to lead: We help lead the
As of the end of 2023, as part of our Digital conducting food safety culture assessments
advancement of food safety from farm
Advancing Food Safety Risk Food Safety (DFS) initiative, 96% of McDonald’s for their own organizations and implementing
to customer and deploy processes to restaurants had fully implemented the move necessary responsive actions. At the end
help us anticipate and manage potential
Management from paper-based to digital food safety of 2023, more than 80% of the Company’s
food safety-related risks. The Company’s food safety risk management checklists. This supports the production of suppliers had conducted a food safety
(FSRM) dashboard provides the Food Safety and real-time reports to help identify potential food culture assessment.
Quality teams with the information and data they safety risks and prompt timely remedial action.
need to develop plans for mitigating risks.
Examples of the Company’s Commitment Engaging With the Company’s Supply Chain We continue to be forward-looking regarding our
to Food Safety in 2023 food safety standards. Historically, we have used
McDonald’s expects its food suppliers to
our connection to industry partners, academia
• McDonald’s participated in the 18th Global Food complete and meet SQMS standards and, in the
and regulatory authorities around the world to
Safety Summit in Barcelona, Spain, coordinated case of higher-risk foods, an additional Good
anticipate science- and risk-based intelligence
by the European Networking Group (ENG). Manufacturing Practices (GMP) audit. When we
to evolve them. We have progressively matured
One of our team members presented on risk identify specific gaps between our suppliers and
our standards, each time benchmarking against
assessment implementation plans as a key GMP standards, we follow up with scheduled
the Global Food Safety Initiative (GFSI) to ensure
factor for customers and brand protection. online webinars or calibration sessions.
ongoing relevance.
• McDonald’s has been on the Fruits and
In May 2023, the Food Safety team played an
Vegetable Technical Committee with
active role in the Global Supply Chain Supplier Next Steps
the Global Good Agriculture Program
Summit, helping to educate Supply Chain teams
(GLOBALG.A.P.) since 2017 and, in 2023, While we are proud of the progress we’ve made
on food safety risk management and food safety
remained an active participant to continually to date, our food safety journey is far from over.
culture. The Food Safety team also conducted
improve global agriculture practice standards. Moving forward, we will maintain food safety as
the following training sessions in 2023:
• McDonald’s played a leading role in founding a key part of our always-on goals, highlighting
• SQMS training for a protein supplier.
SSAFE – and has been an active participant the continued importance of, and focus on, food
since – to develop a food safety culture • Restaurant food safety training in Europe. safety improvements.
assessment tool for any company to leverage. • Food safety packaging training for 15 Latin
We shared this with our suppliers globally. As we move into 2024 and beyond, we plan
American markets.
to focus on executing our food safety
In 2023, the Company facilitated third-party culture action plan and aim to identify additional
food safety audits of suppliers to help verify that areas of focus to further strengthen our
they were following the Company’s food safety efforts. We also plan to leverage insights and
and quality standards. Over 90% of audited data enhancement efforts from 2023 to begin
suppliers were found to be meeting McDonald’s updating and automating our data collection
audit standards for SQMS. processes to help support better auditing
and reporting.
Nutrition & Marketing Practices

Our 2023 Progress
We help feed millions of McDonald's mission is to make Across our 20 major markets1:
delicious feel-good moments easy for
people every day, with a
everyone. We listen to our customers In 2023, 61% of Happy Meal 100% of Happy Meal nutrition
focus on offering families and evaluate our menu to identify Bundle Offerings met our Global information was available on all
the choices they love. ways to evolve our offerings while Happy Meal Nutrition Criteria for participating market websites and
maintaining the great taste people balanced meals. These criteria mean mobile apps as of Q1 2024.
know and love. meals must have less than or equal
to 600 calories, 10% of calories from
saturated fat, 650 mg of sodium and
10% of calories from added sugar. 99% of Happy Meal Bundles
shown in advertisements on
third-party media met our Global
Nutrition Criteria.
In 2023, we maintained the
removal of artificial flavors,
added colors from artificial
sources and artificial We featured water, milk or juice as
preservatives where feasible2 the Happy Meal beverage, and fruit,
from Happy Meal Offerings in our vegetable or dairy items as one of the
20 in-scope markets. Happy Meal sides in 100% of the ads
the Company directed to children.
Our Strategy in Brief Read more about our Nutrition and Marketing CASE STUDIES
strategy on our website.
We believe parents are looking for menu choices
they can feel good about when it comes to As we look to the future, McDonald’s will Encouraging the Switch From Offering a Variety of Fruit
feeding their kids. That’s why, in accordance continue to evaluate how our strategy can
with our values, we’ve been making balanced
Soft Drinks to Water in Happy and Vegetable Options in
evolve to meet changing customer needs and
meals more accessible to families across the preferences, building on the progress we have Meal Menus Across Europe the Happy Meal
world by offering options that contribute to made to date.
Since removing soft drinks from Happy Many of our markets offer seasonal fruits
recommended food groups, such as fruits,
Meal menu boards in 2013, we’ve continued and vegetables as a Happy Meal side
vegetables and low-fat dairy.
Our Performance efforts to promote beverages with no or choice. By providing a variety of options,
low added sugar, such as water and milk. we can help create greater access to
In 2018, we set five goals to evolve our Happy
fruits and vegetables for kids to enjoy.
Meal over a five-year period. We published an 1. Offer Balanced Meals In 2021, McDonald's restaurants in We also leverage creative campaigns
independent Global Happy Meal Goals report
We aim to ensure 50% or more of the Happy Germany and Austria launched a children’s to excite and engage kids and families
announcing our significant progress on those
Meal Bundle Offerings listed on menus in each water offering that featured creative about these offerings.
goals, across 20 major markets from 2018–2022.
of the in-scope markets meet McDonald’s packaging aimed at encouraging more
Global Happy Meal Nutrition Criteria. consumption of water. Both markets saw For example, in 2023, Canada introduced a
As we move forward, we will continue monitoring
take rates of the kids’ water increase over rotating Happy Meal fruit program so that
performance of our 20 major markets against
In 2023, 61% of Happy Meal Bundle Offerings, on 12 percentage points from 2020 to 2023, kids can enjoy new and different fruits –
the following key measures of progress:
average, met the Nutrition Criteria across the 20 which also coincided with a decrease in including apples, pineapple and cantaloupe
• Offer balanced meals. in-scope markets, up from 36% in 2018.3,4 soft drink take rates during that same – throughout the year.
• Maintain simplified ingredients. time period.
In 2022, one market received an exemption from Similarly, the U.K. has an “always on” fruit
• Be transparent with Happy Meal fulfilling this goal and two received extensions. McDonald's restaurants in Italy and and vegetable offer, which means there’s
nutrition information. One of these markets has since achieved Switzerland have also seen increases in a fruit and vegetable option available as
• Market responsibly. this goal, while the other received a further take rates of water in the Happy Meal in part of the Happy Meal year-round. In
extension to achieve it by the end of 2024. recent years, reaching 29% in 2023 in Italy 2023, this included items like cucumber
Informed by the last five years, we will no longer compared to 25% in 2020, and increasing sticks, pineapple, carrot sticks, apple slices
continue reporting on Happy Meal sales data. We over seven percentage points from 2018 to and grapes.
will continue to encourage markets to leverage 2023 in Switzerland.
innovative marketing, finding new ways to offer
and promote items.
2. M
aintain Simplified 4. Market Responsibly
Ingredients All Happy Meal Bundles advertised to children6
We are proud of the work that we did to remove must meet McDonald’s Global Happy Meal
100% of artificial flavors, added colors from Nutrition Criteria along with applicable local/
artificial sources and artificial preservatives, regional advertising pledges.
where feasible2, from our Happy Meal Offerings
In 2023, 99% of Happy Meal Bundles shown
in 2022. We are also proud to have maintained
in advertisements on third-party media met
this achievement throughout 2023 in all 20 in-
our Global Nutrition Criteria. Additionally, we
scope markets.5 Moving forward, our goal is to
featured water, milk or juice as the Happy Meal
maintain what we have achieved and take steps
beverage, and fruit, vegetable or dairy items as
to ensure any new Happy Meal Offerings also
one of the Happy Meal sides in 100% of the ads
meet this standard.
the Company directed to children.
3. B
e Transparent With Happy
Meal Nutrition Information
As of Q1 2024, 100% of nutrition information
was available for all markets with websites and
mobile apps. In 2022, two markets were granted
an exemption from publishing one or two
nutrients due to local legislative requirements.
All other nutrient information was published.
Responsible Sourcing
Sustainable Sourcing of Our Priority Commodities
We aim to use our scale and The road to serving McDonald’s menu In 2023, we continued advancing efforts to responsibly source our priority commodities,
items that delight customers is long achieving the following:
influence to help positively
and complex. Our global supply chain
impact our planet, in spans countries, continents and 98.8% of beef sourced for 97.9% of our primary
addition to the animals and industries. We approach responsible McDonald’s restaurants supported fiber-based guest packaging
people connected to our sourcing holistically, understanding deforestation-free supply chains globally was sourced from
that our work can impact the by the end of the year.7 recycled or certified sources.8
supply chain, especially livelihoods of people, the health of our
when sourcing our priority shared planet and the well-being of
commodities, which is where animals. We believe we must respect
them all. 100% of soy sourced for 100% of the palm oil
we believe we can have the the feed of chicken used in used in McDonald’s restaurants
greatest impact: beef, soy McDonald’s products supported and as an ingredient in McDonald’s
for chicken feed, fiber, palm deforestation-free supply chains products supported the production
globally.9 of sustainable palm oil.10
oil, fish and coffee.
99.9% of our ground and 93.8% of the fish

whole bean coffee was sourced for McDonald’s
sustainably sourced.11 Filet-O-Fish® sandwich was
from sustainably managed wild-
caught fisheries, and is assessed
and verified annually against the
McDonald’s Sustainability Fisheries
Standard by the Sustainable
Fisheries Partnership.12
Our Strategy in Brief We aim to deliver responsible sourcing programs We are scaling adoption of regenerative peer learning network. As of the end of 2023, the
that drive lasting, meaningful outcomes on the agriculture projects – projects that aim to program is working with 86 ranches impacting
Our global supply chain presents a range of environmental and social issues that are critical improve soil health and biodiversity, optimize over 800,000 acres across Montana, South
opportunities and risks related to topics such as to the Company. To enable this, we focus on water availability, drive climate action and help Dakota, Nebraska and Wyoming.
land, water, animals and people. In the spirit of several topics: animal health and welfare; human restore and protect ecosystems. Participating in
one of the Company’s core values, Integrity – We rights; business resilience; and nature, forests several multi-year regenerative projects provides Helping Keep Soils Healthy
do the right thing, we support the Company’s and water. us with valuable insights and learnings that will In collaboration with Cargill, The Nature
long-term goal to continue providing quality food ultimately inform how these practices can be Conservancy and Target, we are supporting
to customers. scaled long term for our business.
Our Performance row crop farmers in Nebraska to implement
regenerative agriculture practices with the aim
We take a two-pronged approach to responsible Read about our approach to regenerative
We focus on responsibly sourcing for priority to help mitigate climate change and improve
sourcing. On one side, we consider and manage agriculture on our Responsible Sourcing
commodities, recognizing these sourcing the resiliency of land. This five-year initiative
risks that could impact supply chain resiliency web page.
practices as a key driver for progress against is expected to impact 100,000 acres of land
and our ability to maintain a reliable supply to our
many of our other long-term commitments, used for corn production. As of the end of 2023,
restaurants and offices. On the other side, we Supplier Engagement
including in the areas of animal health and there were 53 farmers enrolled in the program,
seek to enhance the potential positive impacts
welfare; climate; nature, forests and water; and As part of a five-year pilot initiative with Cargill, with approximately 23,000 acres implementing
of the Company’s supply chain – on topics such
human rights. Our size and scale also represent the Walmart Foundation and World Wildlife climate-smart practices.
as the livelihoods of those who produce our food
an opportunity to help drive bigger changes Fund (WWF), since 2020, we have invested
and the well-being of the planet and animals
across global food systems. $1.6 million to support ranchers in the Northern Helping Increase Biodiversity Through
we rely on – by progressing against our wider
Great Plains through the Ranch Systems and Encouraging Sustainable Grazing and Beef
Impact Strategy.
Supporting and Advancing Viability Planning (RSVP) network. Sourcing Practices
Regenerative Agriculture Through RSVP, ranchers have access to a

Increasing biodiversity helps keep our
We're informing our approach by comprehensive support system designed
ecosystem in delicate balance and supports
The strength of our supplier community is all life on Earth – boosting resiliency and
participating in several multi-year to help them develop sustainable grazing
critical to our ability to advance science-based adaptability for the planet and our population.
regeneration projects. climate action and drive nature-based solutions management plans with assistance from on-
It also plays a crucial role in supporting global
globally. Investing, together with industry peers, the-ground technical experts. They can also
food security.
in projects that help support supplier resilience access ecological monitoring, educational
and contribute to thriving food systems has scholarships to attend grazing and soil health
Grazing practices, such as rotational grazing and
become a core part of our sourcing strategy, as workshops, a grazing management cost-share
reduced external inputs, increases biodiversity,
we work to embed regenerative principles across program that helps them improve grazing
benefits land productivity and fertility and helps
our supply chain. infrastructure on their ranches and a peer-to-
combat the impacts of climate change.
Cattle are a vital part of the farm ecosystem, CASE STUDIES

contributing to soil biology by the trampling of
grass and adding dung to feed soil microbes –
naturally fertilizing the land as they are rotated Quantifying the Impact of Partnering for Regenerative
from area to area. This approach also supports Potato Farming
Regenerative Grazing Practices
habitats for insects and birds, which benefit
overall biodiversity. As a founder of Farm Animal Initiative When it comes to advancing responsible health, water efficiency and regenerative
(FAI) Farms, we have spent over 20 years farming practices across our supply agriculture research. We have also worked
Some examples of our work focused on contributing to the development of chain and wider industry, we recognize with McCain through a $1 million Future of
engaging with beef farmers on the topic of sustainable farming practices for the food the invaluable opportunity partnerships Potato Farming Fund to similarly incentivize
biodiversity in 2023 include: industry. This has included helping launch present. For over two years, we have been Canadian growers.
• McDonald's Canada partnered with Ducks the Adaptive Multi-Paddock (AMP) Grazing an active member of the Sustainable
Project in 2020, an initiative that seeks Markets Initiative and its Agribusiness This collaboration is an important example
Unlimited Canada and Cargill to conserve
to demonstrate the benefits of applying Task Force. Through the Task Force, we of the positive impact direct, farm-level
Canadian grasslands, with the goal of returning
regenerative principles to beef farming. collaborate with other global brands – as investments can have on regenerative
125,000 acres of cropland to grass and pasture
well as financial institutions – to accelerate agriculture adoption. By helping to reduce
by 2025. See the 2023 progress announcement
In 2023, McDonald’s UK & Ireland built on and derisk adoption of regenerative financial burden for farmers and engaging
for more information about the efforts.
this groundwork, launching a new project agriculture practices. them on best practice approaches, we can
• For almost 10 years, we have utilized the to share best practices in regenerative help scale regenerative farming across the
CAP’2ER® tool, which is an environmental grazing. Involving 11 beef farms, covering For example, we teamed up with our potato farms that make our fries possible.
footprint calculator that evaluates the positive approximately 7,500 acres and over supplier and fellow Task Force member
and negative environmental impacts within 3,500 cattle in England and Wales, the McCain Foods to launch the Sustainable
beef farming, helping to identify where project measures the impact of applying Fries Fund, a £1 million joint investment
farmers can work especially to reduce their regenerative principles on nature, soil, to help U.K. potato growers adopt more
greenhouse gas (GHG) emissions and improve biodiversity, water, carbon sequestration sustainable practices. Through the Fund,
their carbon storage. As of 2023, we have and climate resilience. growers can access grants to invest in soil
verified that over 121,000 hectares of land
are being managed to support biodiversity
by more than 1,000 French cattle farms we
source from.
Animal Health & Welfare and

Responsible Antibiotic Use
Progress in Our Animal Supply Chain
The health and welfare of We believe serving safe, quality We aim to source beef and dairy, chicken, eggs and pork from suppliers who share the Company’s values.
food requires sourcing animals that Our expectations, including with respect to animal health and welfare, are outlined in our policies, standards
animals in the Company’s and/or specifications for raw materials and finished products.
are properly cared for throughout
supply chain is a priority. their lives. This is why the Company
prioritizes animal health and welfare Beef: We have established Chicken: HPCIA14 use has been
and responsible antibiotic use in market-specific targets for eliminated from chicken served in
food animals. responsible antibiotic use in our Australia, Brazil, Canada, Europe,
beef supply chain for 10 in-scope Japan, South Korea and the U.S.
We have worked to promote antibiotic
markets and begun partnering to
stewardship and reduce use since We are also on track to achieve our Broiler Welfare
establish measurement systems
2003, when we first published our Commitments by the end of 2024:
to track future progress.13
global policy prohibiting routine use
for growth promotion. • Achieved: We have completed large-scale
commercial trials to study the effects of
Pork: As of the end of 2023, the
production parameters on welfare outcomes.
U.S. pork supply chain was over 96%
of the way to our goal of phasing • Achieved and ongoing: We have established
out the use of gestation stalls for our Chicken Sustainability Advisory Council
housing confirmed pregnant sows (CSAC) and defined farm-level Key Welfare
by the end of 2024. Indicators (KWIs).
• On track: We continue to develop state-of-the-art
welfare measurement technology, introduce more
Eggs: We have achieved 100% enrichments to support natural chicken behavior,
cage-free eggs for our U.S. market, implement Controlled Atmospheric Stunning (CAS)
two years ahead of schedule. and third-party on-farm auditing, and assess the
feasibility of extending these commitments to
additional markets.
Our Strategy in Brief As one of the world’s largest Our Performance COMMITMENT
We believe we have a responsibility to help food companies, it’s very
GOAL We are committed to sourcing
improve the health and welfare of animals in our pleasing to see McDonald’s chickens raised with improved
supply chain, and work with our global network collaboratively doing its part In the U.S., we’re working with pork welfare outcomes. To achieve this,
of suppliers, as well as subject matter experts
and academia, to actively encourage industry
to advance practices related suppliers to phase out the use of we have outlined eight specific
to the responsible use of gestation stalls (small, enclosed commitments for our in-scope
and cross-sector collaboration on this topic.
Using an approach that considers everything antibiotics, as well as leveraging pens) for housing pregnant sows markets, which are expected to
from KWIs to humane slaughter, we aim to by the end of 2024. be fully implemented by the end
learnings from the Responsible
leverage scale to help drive positive outcomes. of 2024.15
And, through our commitment to responsible Use of Medicines in Agriculture PROGRESS
antibiotic use, we are collaboratively doing Alliance in establishing market- PROGRESS
As of the end of 2023, more than
our part to help preserve the effectiveness of appropriate responsible use 96% of our pork purchased in the
antibiotics for future generations. We are on track to achieve our 2024
targets. We applaud McDonald’s U.S. comes from suppliers that have Broiler Welfare Commitments across
Read our Animal Health & Welfare and approach, which demonstrates phased out the use of gestation in-scope markets. As of the end of
Responsible Antibiotic Use strategies in a solid commitment to stalls for housing confirmed
detail on our website.
2023, in-scope markets represented
protecting and improving pregnant sows. more than 58% of our global
the health and welfare of chicken supply.
This marks continued significant progress on
animals and is supportive of our journey to maximize the time pregnant
industrywide data collection sows spend in a group environment. Our These commitments apply to chicken raised
to continue refining antibiotic commitment is guided by the industry and for sale at McDonald’s restaurants in Australia,
American Association of Swine Veterinarians Canada, France, Germany, Italy, Ireland, the
use across beef industries. Netherlands, Poland, South Korea, Spain,
(AASV)-endorsed definition for group housing
for pregnant sows. In 2023, McDonald’s bought Switzerland, the U.K. and the U.S.
more than 230 million pounds of pork from
Cat McLaughlin, Responsible Use of Medicines in Agriculture We focus on chicken in more detail on
Alliance, Chair producers that house pregnant sows in groups.
our website.
We remain committed to this journey and are on
track to achieve our target by the end of 2024.
Our journey to move to sourcing GOAL GOAL

80% of our global beef supply chain as of the
end of 2022).14 These targets were informed by
100% cage-free eggs in the U.S.
The U.S. has a goal of sourcing 100% In collaboration with our suppliers, insights from beef antibiotic monitoring
was a huge undertaking – made cage-free eggs by the end of 2025. producers and farmer partners, we pilot tests and in collaboration with subject
uniquely possible by our Owner/ will establish market-appropriate matter experts.
Operators, Cargill and its egg PROGRESS Achieved early targets for use of medically important Our targets focus on the responsible use of
producers, and our supply chain As of the end of 2023, McDonald’s antibiotics – as defined by the World medically important antibiotics and are aligned
working together as one team. USA has achieved its commitment Health Organization (WHO) – in our with WHO guidelines on antimicrobial resistance
I am incredibly proud of what of sourcing 100% cage-free eggs beef supply chain, and we will partner (AMR). Our policy does not permit the routine
in the collection of antibiotic use data use of medically important antibiotics for the
we achieved together and the for items served on its breakfast purpose of growth promotion or the habitual
menus by 2025 – two years ahead and measurement of progress on
positive impact we will continue use of antibiotics for disease prevention.16
of schedule. responsible use associated with the
to make on the path toward a beef industry globally. During 2023, the Company’s supply chain
more sustainable future. worked to identify and enhance access to data
PROGRESS that will help enable future measurement of
antibiotic use and trends over time in our supply
Bob Stewart, Senior Vice President and Chief Supply Chain We are collaborating with suppliers chain. For example, in the U.S. and Canada, we
Officer, North America, McDonald’s USA
to collect antibiotic use data have identified key suppliers for a multi-year
associated with global beef initiative aimed at working with processor
industries, leveraging independent and farmer participants to launch a new data
third parties to facilitate data interface for various supply chain levels. This
aggregation. project would create a platform for suppliers and
other partners to provide data, enabling wide-
reaching measurement capabilities that don’t
Currently, there is limited data on antibiotic currently exist in the industry. In the U.K. and
use in the beef industry. Our intention is to some other European markets such as France,
help drive positive behavioral change and Germany and Poland, some of our suppliers
transparency, as well as enable comprehensive are already participating in annual mandatory
assessment of antibiotic use across our in- reporting of their antibiotic use progress. We
scope beef supply chains. In December 2022, are working to understand how we can use
we established market-specific targets for the this existing tracking and reporting to measure
responsible use of antibiotics in our beef supply progress toward the Company’s targets.
chain for 10 in-scope markets (representing over
We are actively advancing data collection while

GOAL Progress on Broiler Welfare
accounting for the needs of our suppliers and
Commitments
their animals. In addition to looking at total Eliminate the use of antibiotics
antibiotic use across our in-scope markets, we defined by the WHO as Highest In 2017, we established eight commitments for
are exploring the drivers of antibiotic use, such broiler welfare, designed to support our wider
Priority Critically Important
as disease pressures, weather impacts or other global commitment to source chickens raised
Antibiotics (HPCIAs) to human
external factors. With the health and welfare with improved welfare outcomes. During 2022,
of animals at the forefront of our approach, it medicine from all chicken served
we published an interim update on our progress
is critical to take the time to understand these in in-scope markets by the end and, throughout 2023, have continued to track
nuances to help ensure we implement our of 2027.17 against each of our commitments. We will
standards in ways that promote responsible use publish final updates in 2025, in line with our aim
while continuing to positively impact animal PROGRESS of fully implementing these commitments by
health and welfare. the end of 2024.
Across the in-scope markets, HPCIA
For more detail about our approach and use has been eliminated in Australia,
strategy, read more about responsible Brazil, Canada, Europe, Japan,
antibiotic use on our website. South Korea and the U.S., with China
expected to comply before the end
of 2027.
Our Eight Commitments to Broiler Welfare
2024 Commitment Progress as of the end of 2023 2024 Commitment Progress as of the end of 2023
1. Establishing the McDonald’s The McDonald’s CSAC supports our continued journey to improve animal welfare standards by providing 5. Running commercial trials to study 2022: We achieved our commitment around conducting commercial trials to study the effects of certain
Chicken Sustainability Advisory crucial insights and knowledge. the effects of certain production production parameters – such as breed and stocking density – on welfare, behavior, environmental and
Council (CSAC) parameters on welfare outcomes economic outcomes. The results of these science-led, data-driven efforts indicate that changing breed
McDonald’s launched its CSAC in 2018, made up of 15 researchers, academia, welfare experts,
and stocking density variables could have direct and significant environmental impacts, such as on
Status: Achieved, Ongoing nongovernmental organizations (NGOs) and suppliers to provide progressive guidance and credible Status: Achieved
emissions and land use change.
counsel. Organizations with members on the CSAC include Farm Animal Initiative (FAI) Farms and World
Wildlife Fund (WWF), as well as leading academics and researchers such as Dr. Temple Grandin and These trials were also crucial for informing our KWI target-setting approach, which helps drive continuous
Dr. Harry Blokhuis. This Council – and working groups derived from it – convenes regularly and continues welfare improvement throughout our supply chain.
to provide expertise, insight and directional guidance for our broiler welfare and sustainability efforts.
6. Controlled Atmospheric Stunning McDonald’s was one of the first retailers to implement a CAS system into a U.S. broiler supply chain, and
2. Measuring key farm-level welfare 2019: The CSAC helped define 15 globally aligned farm- and process-level Key Welfare Indicators (KWIs) to (CAS) in the U.S. and Canada currently 66% of our dedicated processing facilities (four out of six) have been converted. Remaining
outcomes operationalize our strategy. The KWIs measure performance toward our welfare outcomes commitment
facilities are on track to be onboarded by the end of 2024. CAS is a U.S. Department of Agriculture-
and inform progress on our goal. Status: On track
Status: Achieved, Ongoing approved method that is recognized to be humane for the animal while also ensuring better conditions for
In partnership with global suppliers and an external third-party facilitator, we concluded an extensive, two- workers.
year commercial trials initiative to study the impacts that certain production parameters – such as breed
100% of our Canadian broiler volumes have been converted to CAS. CAS is in use across 100% of our
and stocking density – have on welfare, environmental and economic outcomes.
Canadian supply chain facilities and is already practiced by many approved suppliers for McDonald’s
2022: We set targets through our KWIs approach, which mean that suppliers will now be ranked in restaurants in Europe and Australia.
performance peer groups that will inform timebound improvement goals. The insights gained from our
first three years of data collection were shared with suppliers, with a focus on Systemwide continuous 7. Implementing third-party We have initiated a process to define, then implement, our third-party on-farm auditing protocol by the
improvement. As of the end of 2023, we have gathered data on more than 6.8 billion birds. on-farm auditing end of 2024.
3. Developing state-of-the- These technologies will be among the first of their kind proposed for commercial availability and will help Status: On track As we implement our global broiler welfare standards, we will establish third-party verification to enable
art welfare measurement technology McDonald’s identify opportunities for improvement in broiler welfare. continuous improvement.
Status: On track McDonald’s has invested nearly $2 million (which enabled an additional $2.6 million in matching funds) 2023: We developed and tested an audit tool focusing on our new welfare requirements. These results
into our Sensing, Monitoring, Analysis, Reporting Technology (SMART) Broiler initiative to automate informed further revisions to the audit tool, development of an auditing protocol and auditor training
gathering animal health and welfare indicators. materials.
Three research projects are now in Phase 2 of development, which will run through Q3 2024.
8. Complete an assessment to Our feasibility assessment is currently underway.
Throughout this phase of the initiative, McDonald’s will provide researchers with access to funds and measure the feasibility of extending
Our work with suppliers includes assessing their capacity to service new markets in line with our animal
facilities that allow them to continue developing technology that objectively and effectively monitors these commitments to additional
welfare policies and guidelines.
broiler welfare and behavior. global markets where McDonald’s
operates
4. Providing enrichments to support We are working with the Company’s supply chain to ensure housing environments help promote natural
Status: On track
natural behavior behaviors, such as pecking, perching and dust-bathing.
Status: On track 2021–2022: An Enrichments & Lighting Working Group, a subset of our CSAC, developed enrichment and
lighting guidelines for implementation by suppliers.
2022–2023: Suppliers tested lighting and enrichments in commercial settings.

Notes 8 Fiber. Scope: Primary fiber-based packaging refers to products that are used McDonald’s is committed to increasing traceability by specifying physical 13 Beef antibiotic use: This goal focuses on Australia, Brazil, Canada, France,
to package guest food on premises at McDonald’s restaurants. This type of certification for the palm oil used in the McDonald’s System in the greatest Germany, Ireland, New Zealand, Poland, the U.K. and the U.S., which
1 Our major markets include Argentina, Australia, Austria, Brazil, Canada, China, packaging includes containers, cups, wraps, bags for food, beverages, napkins, volumes (IP, SG or MB). Exclusions: Palm oil, palm kernel oil or their derivative represented our top 10 beef sourcing countries and accounted for over 80% of
France, Germany, Hong Kong, Italy, Japan, Mexico, the Netherlands, Poland, folding cartons, clamshells, food service bags, napkins, salad bowls, Happy used as secondary ingredients in McDonald’s products. This is when palm oil is our global beef supply chain as of the end of 2022.
Spain, Sweden, Switzerland, Taiwan, the U.K and the U.S. While initially included Meal cartons, drink carriers and cup carriers. Includes all suppliers of primary- used as an ingredient within an ingredient, for example, an emulsifier.
in these 20 markets, Russia was removed in 2022 following our exit from this based packaging to the McDonald’s System and all McDonald’s restaurants 14 Antibiotics defined by the WHO as Highest Priority Critically Important
market. We subsequently incorporated Mexico into the goal scope, as its owned and operated by the Company and its Franchisees. In 2021, the primary 11 Coffee. Scope: Includes all ground and whole bean coffee, including Antibiotics (HPCIA).
progress was already being monitored and it allowed us to maintain tracking fiber-based packaging scope was expanded to include plastic alternatives decaffeinated coffee, used in espresso-based drinks and coffee brewed at
McDonald’s restaurants, and all ground and whole bean coffee in McDonald’s- 15 Broiler welfare: These commitments apply to chickens raised for sale at
against 20 markets. such as wood stirrers and cutlery, and paper straws and lids. This broadened
branded retail products. Includes all suppliers of coffee to the McDonald’s McDonald’s restaurants in Australia, Canada, France, Germany, Italy, Ireland,
scope has resulted in a slight decrease in percent compliance. All volumes of
2 McDonald’s top priority is to ensure all items meet strict food safety and quality System. Market scope includes all McDonald’s restaurants owned and the Netherlands, Poland, South Korea, Spain, Switzerland, the U.K. and the U.S.
contingency items sourced from suppliers compliant with our standards but
standards. “Where feasible” means that by removing an artificial preservative, operated by the Company and its Franchisees that sell coffee, and retail Russia has been removed from the scope of this goal based on our 2022 exit
not integrated into our data reporting system were counted as non-compliant.
there will not be a sacrifice in the food quality or safety standards, value or outlets selling McDonald’s-branded coffee products. Countries with regions from this market.
Countries with regions currently identified as high-deforestation priority
taste. In certain cases, it was determined that an artificial preservative was currently identified as high-deforestation priority regions for coffee include
regions for fiber include Argentina, Cambodia, China, Indonesia, Laos, Malaysia, 16 Beef antibiotic use: Habitual use of medically important antibiotics for
necessary to ensure the safety, quality, taste or value of the food. Honduras, Indonesia and Vietnam. McDonald’s requires all coffee sourced from
Russia and Vietnam. McDonald’s requires all wood fiber sourced from these disease prevention is a probable indication of an underlying herd-specific and/
regions to be Forest Stewardship Council® (FSC®) certified or FSC® controlled these regions to be Rainforest Alliance Certified. Exclusions: Coffee extracts
3 Averaged across the 20 major markets. or management issue and is not permitted except in the following narrowly
wood sources with full chain of custody certification. Exclusions: Primary and ingredients used in products such as frappés and coffee in baked goods;
defined situations: based upon the determination of a qualified veterinarian
fiber-based packaging in food packaged off-site McDonald’s restaurants; tray coffee in cold brew drinks if they are brewed off-site; coffee extract in ready-to-
4 One market was granted an exemption from this goal due to use of a frying oil familiar with the disease history in the herd, non-routine prevention uses may
liners, straws and limited locally sourced items. drink retail products; and other locally sourced products containing coffee.
that meets local dietary customs. Two markets were granted extensions until be permitted if there is a high risk of contraction of a particular infectious
the end of 2023 due to delays in technology to update their ordering channels disease. If use is deemed necessary and when effective multiple treatment
9 Soy (for chicken feed). Scope: Includes all soybean volume used in the feed 12 Fish: Fish refers to any type of fish species used as an ingredient in a
(kiosk and mobile app). options exist, McDonald’s encourages adoption of a tiered approach to
of chicken sourced for McDonald’s products by all chicken suppliers to the McDonald’s product and listed on the product’s ingredient statement. Wild-
Caught Fish refers to fish that come from seas, rivers and other natural antibiotic selection – least important to human medicine being the first choice,
5 One market was granted an extension until January 2023 because of supply McDonald’s System and all McDonald’s restaurants owned and operated by
bodies of water. Filet-O-Fish sandwich refers to the McDonald’s menu item with HPCIAs reserved for last resort. See Antibiotic Policy for our Beef Supply
chain challenges. This market fulfilled this goal in January 2023. the Company and its Franchisees that sell chicken. Europe refers to Austria,
containing wild-caught fish. Verified sustainable sources refers to wild- Chain for further information.
Azerbaijan, Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia,
6 If a local food pledge commitment exists, the “directed to children” definition in Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Latvia, caught fish, sourced by suppliers to the McDonald’s System, from fisheries that
17 Chicken antibiotic use: Markets covered by this goal include Brazil, Canada,
that food pledge applies. In countries without a local food pledge commitment, Lithuania, Luxembourg, Malta, Moldova, the Netherlands, Norway, Poland, are annually verified as compliant with the McDonald’s Sustainable Fisheries
Japan, South Korea, the U.S., Australia, China and Europe. For the purposes
for measured media, the following definition applies: Media purchased for Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Standard by the Sustainable Fisheries Partnership. MSC Certification is
of this goal, Europe includes Austria, Azerbaijan, Belgium, Bulgaria, Croatia,
any program or website where the expected audience generally consists of the U.K. and Ukraine. Countries with regions currently identified as high- optional to McDonald’s markets. Fisheries may also be independently certified
the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany,
35% or more of children under the age of 12 years. In unmeasured media, deforestation priority regions for soy include Argentina (Chaco biome), as meeting the Marine Stewardship Council (MSC) Principles and Criteria for
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Moldova,
McDonald’s may consider other factors, as appropriate, to determine whether Brazil (Amazon and Cerrado biomes) and Paraguay (Chaco biome). Given the Sustainable Fishing where a certificate of conformity to an MSC Standard
the Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia,
the advertising is directed to children, such as the overall impression of the complexity of soy supply chains, we consider that, unless demonstrated, all of has been granted. Source: www.msc.org. McDonald’s may display the MSC
Spain, Switzerland, Sweden, the U.K. and Ukraine. As of December 2023,
advertising, the target demographic based on the media plan and whether age McDonald’s sources of soy for chicken feed fall into high-deforestation priority certification logo in some of its markets where fisheries and restaurants are
Belarus, Bosnia & Herzegovina and Kazakhstan have been removed from the
screening applies. regions, with the exception of chicken sourced in North America, where soy certified against the MSC Chain of Custody traceability standard. Scope:
scope of this goal based on our exit from those markets.
used in chicken feed is locally produced and considered low risk. Exclusions: Includes all wild-caught fish sourced for Filet-O-Fish sandwich portions served
7 Beef. Scope: Includes all beef raw material used in beef patties sourced for in McDonald’s restaurants. Filet-O-Fish sandwich portions represents over 97%
Soy used as an ingredient in McDonald’s products sold in restaurants, for
McDonald’s products from beef patty manufacturers that supply McDonald’s of the total fish volumes used in the McDonald’s System (by weight). Includes
example, soy oil.
restaurants in the U.S., Australia, Brazil, Germany, Ireland, France, New all suppliers of wild-caught fish for Filet-O-Fish sandwich to the McDonald’s
Zealand, Canada, the U.K. or Poland. Includes all McDonald’s restaurants 10 Palm oil. Scope: Includes all palm oil (including crude palm oil, palm kernel System and all McDonald’s restaurants owned and operated by the Company
owned and operated by the Company and its Franchisees in these countries, oil, derivatives and fractions) sourced for McDonald’s restaurants for use and its Franchisees that sell fish. Exclusions: Products that are not Filet-O-Fish
which collectively represent over 80% of our global beef volumes, as of the as restaurant cooking oil and all palm oil sourced by McDonald’s suppliers sandwich containing wild-caught or farmed fish. We estimate that these
end of 2021. The Global Roundtable for Sustainable Beef (GRSB) aims to and used directly as an ingredient in a McDonald’s product and listed on the products represent less than 2% of the total fish sourced by McDonald’s by
define the principles of and criteria for beef sustainability globally. The five product’s ingredient statement. Includes all suppliers of products containing weight and may include products such as tuna, prawns, shrimp, salmon and
core principles are focused on the following: managing natural resources palm oil in the McDonald’s System and all McDonald’s restaurants owned and calamari; other breaded products; and locally sourced products. The Company
responsibly; respecting people and communities; caring for the welfare of operated by the Company and its Franchisees that use palm oil. All countries has set an expectation that these products are sustainably sourced, although
animals; ensuring the safety and quality of beef; and driving efficiency and are currently identified as high-deforestation priority regions for palm oil and they are not included in this global performance measure given the local, and
innovation to reduce waste and improve economic viability. These principles all volumes are required to be covered by Roundtable on Sustainable Palm often promotional, nature of these items. Moving forward, we have plans in
allow for national and regional interpretation, given the significant variation in Oil (RSPO) certification or credits. All RSPO supply chain models applicable place to reduce sourcing from non-compliant fisheries and will increase our
production systems, legal frameworks, sociopolitical factors and climates that to RSPO are applicable to McDonald’s ‒ RSPO Identity Preserved (IP), RSPO supply of fish sourced from compliant fisheries as new facility options become
exist across the globe. Exclusions: Beef used as secondary ingredients. Segregated (SG), RSPO Mass Balance (MB) and Book and Claim (BC) ‒ although available.
Jobs,
Jobs,Inclusion
Inclusion&&
Empowerment
Empowerment
Everyone deserves a safe, respectful and
inclusive workplace where they have the
opportunity to thrive. We strive to support our
employees by addressing inequalities through
closing pay gaps and ensuring our workforce
represents the communities we serve.
Empowering the communities we serve

is fundamental to building the change
we want to see. We are also committed
to helping our Restaurant Staff to
achieve their goals, and have awarded
over $200 million in tuition assistance
through Archways to Opportunity.
Using our global influence, we aim to
positively impact all who engage with
our business.
IN THIS SECTION
46 Human Rights
50 Diversity, Equity & Inclusion
60 Talent & Benefits
Human Rights
Human Rights Focus Areas
We strive to weave human rights McDonald’s conducted due diligence (including

assessments) in 2021‒2022 to identify its
into McDonald’s day-to-day human rights focus areas, listed in alphabetical
practices, helping us fulfill order and not in order of perceived importance.
our commitment to respect
the rights of all people and 1 Child Labor
communities who produce,
2 Data Privacy
serve and enjoy our food.
3 Discrimination and Harassment
4 Diversity, Equity and Inclusion
5 Education and Employment Creation
6 Effective Remedy
7 Forced Labor
8 Freedom of Association and

Collective Bargaining
9 Land Rights
10 Nutrition
11 Occupational Health & Safety
12 Working Conditions
13 Workplace Security
Our Strategy in Brief As well as our Human Rights Policy, McDonald’s Our Policies and Standards
wider human rights approach has been
McDonald’s has developed an approach that developed and informed by third-party human Our commitment to respect human rights is
focuses on issues relevant to its business, rights assessments, ongoing analysis of the set out in our Human Rights Policy. The policy
embeds key activities to address those issues emerging business and regulatory landscape is in line with the UNGPs. We respect rights and
within McDonald’s corporate functions and on human rights, and extensive consultation principles as outlined in the International Bill
market operations, and provides flexibility to with subject matter experts across the business. of Human Rights and the International Labour
respond to emerging human rights-related Organization’s (ILO) Declaration on Fundamental
trends and business priorities. As we continue to evolve our human rights Principles and Rights at Work, the Convention
approach, we’re committed to employee and on the Elimination of All Forms of Discrimination
Regardless of cultural, social or economic stakeholder engagement to inform our own Against Women and the Convention on the
context, we conduct our activities in a way that policy and influence change elsewhere. Rights of the Child. We are also signatories to the
respects the dignity of each person. To maintain Women’s Empowerment Principles.
relevant policies and practices, we work to
identify and understand the human rights issues As well as our commitment to respect people
that are most important to our business. and their rights, our expectations for suppliers
and Franchisees to do the same are also
Foundational to our human rights approach outlined in several documents. Together, these
are the United Nations Guiding Principles standards, principles and policies reinforce a
on Business and Human Rights (UNGPs). culture of integrity and respect, forming the
The UNGPs outlines that businesses should foundation of our efforts to feed and foster
demonstrate respect for human rights through communities worldwide.
five key steps, which the McDonald’s approach is
aligned with: Explore our policies and standards on
our website.
• Policy and Governance
• Human Rights Due Diligence
• Integrate Findings
• Track and Report
• Provide Effective Remedy
Stakeholder Engagement To help ensure our supplier program addresses Progress Against Our deployed their own customer feedback
emerging human rights issues and risks, we mechanisms, and McDonald’s makes
Focus Areas
To assess and prioritize human rights impacts, participate in initiatives such as AIM-Progress, customer-facing contact information
we conduct assessments, monitor media and a business initiative focused on responsible available at restaurant, national and global
third-party reporting and participate in internal sourcing. Beyond industry partnerships, our Oversight of Employment levels. These mechanisms provide an avenue
and external stakeholder engagement. Supplier Workplace Accountability program is of Minors for customers to raise complaints about
complemented by mechanisms that enable discrimination or harassment if experienced
In 2023, we became an Engaged Organization collaboration on a risk-based approach to McDonald’s Supplier Code of Conduct states at a McDonald’s restaurant.
of the Centre for Sport and Human Rights. The high-risk sourcing regions or commodities. that suppliers shall ensure no underage labor,
as defined in the Code, has been used in the
Centre is a human rights organization with a This includes sourcing our largest food and Working Conditions
mission to advance a world of responsible sport packaging volumes through internationally production or distribution of their goods or
that fully respects and promotes human rights services. We periodically evaluate ways to for Suppliers
recognized third-party certification schemes
by generating awareness around key issues, that respect human rights and communities in strengthen our auditing process. In 2023, for McDonald’s values opportunities to partner
building capacity and delivering value-added their certification process. example, McDonald’s engaged third-party with suppliers to move beyond compliance,
impact. Our participation helps us understand supplier auditors to conduct night shift audits especially to foster conditions related to
and implement measures to do our part in Learn more about certifications for at select facilities in the U.S. to help increase the promotion of work-life balance. With
preventing human rights violations linked to our high-priority commodities on our visibility and oversight. McDonald’s support, some Happy Meal toy
sport and major events. Responsible Sourcing web page. production facilities in China partnered with
Encouraging Customers ICTI Ethical Toy Program and The Centre for
McDonald’s collaborates with the industry
to Speak Up Child Rights and Business to run Family Friendly
to promote human rights through our active
Spaces (FFS) in their facilities. This program
participation in, and as Co-Chairs of, the McDonald’s restaurant employees are trained is about reuniting “left behind” children with
Consumer Goods Forum’s Human Rights to create a safe, respectful environment for their parents who are migrant workers in
Coalition, which strives to make human anyone visiting a restaurant, including our toy production facilities during the summer
rights due diligence the industry norm in own customers. McDonald’s promotes customer- holidays. In 2023, nine McDonald’s suppliers
operations and supply chains. McDonald’s is facing surveys on many receipts. In 2023, participated in FFS with 340 children.
also a member of the Leadership Group for McDonald’s received over 100 million survey
Responsible Recruitment, a collaborative effort responses via its global customer satisfaction
to drive positive change in how migrant workers survey platform used in more than
are recruited. 100 markets. Some restaurants have also
Safe and Respectful Workplaces Our Performance

We believe that having a safe place to work is a We are committed to supporting restaurants
human right, and we have built a strategy with (whether Company-owned and operated or
this in mind, taking steps to foster environments franchised) and Company offices with safety-
that prioritize the safety of Corporate Staff, related implementation guidance, including a
employees in our Company-owned and operated suite of policies, tools and training. In 2021, we
restaurants and our customers, while also supplemented existing respectful workplace
providing support to our Franchisees in fostering training with a global eLearning module,
similar environments for their employees. “Building a Safe, Respectful and Inclusive
The Company is committed to respecting the Workplace,” focused on helping prevent
health and safety of people, a concept that is harassment, discrimination and retaliation
incorporated into Company policies, codes of in the workplace.
conduct and guiding principles.
In 2023, we updated our training requirements
You can find additional information about the for markets outside the U.S. to require that
Company’s human rights approach and focus employees complete training within 30 days
areas, as well as related policies and standards, of their first shift.
on our dedicated Human Rights web page.
Also in 2023, Putting People First was
Read more about our approach to safe and established as a standalone assessment
respectful workplaces on our website. visit in international markets. Assessing
people standards separately helps the
Franchisee consultants put the necessary
attention on adherence to the Company’s
people-related requirements.
Diversity, Equity & Inclusion

Our 2023 Diversity Snapshot
Guided by our values, we A global company the size of Our Employees Our Franchisees
McDonald’s can have the opportunity
are committed to helping To have a workforce that represents We are implementing strategies to
to make a positive difference in the
empower the people and world. Every time someone walks the diverse communities we operate support our ambition to increase diverse
communities we serve and through the doors of a McDonald’s in, we believe diversity in our representation within our Franchisee
restaurant, rolls into a drive-thru, employee pipeline is integral to our success as an community in the U.S. by generating
create opportunities for
sees McDonald’s commercials or organization and our position as a change-maker more opportunities for entrepreneurs of all
everyone to succeed. experiences our brand, we have a in our communities. We’re implementing initiatives backgrounds, including through efforts that seek to
chance to build community and that help support our aspiration to increase address potential socioeconomic barriers candidates
foster inclusion. representation at leadership levels. may face in joining McDonald’s.
30% of U.S. Franchisees are women.
Across our Corporate Staff at the Senior Director
level and above:
33% of U.S. Franchisees identified2 as either
44% globally are women. Asian, Black or Hispanic.
33% in the U.S. are from

Underrepresented Groups.1
Our Suppliers
At Company-owned and operated restaurants:
We continue to prioritize creating
2% of managers globally are women
6 opportunities for suppliers of all
(68% in the U.S.) backgrounds. Our U.S. systemwide spend
with diverse-owned suppliers was 26.2%,

66% of U.S. managers are from resulting in McDonald’s reaching its diverse-
Underrepresented Groups.1 owned supplier aspirational spend goal for the
third year in a row.
Our Strategy in Brief Publishing Our Performance Promoting Inclusive All External U.S.-Based Senior Director
and Above Hiring3
The Company's strategy for the future is built The data in this report covers representation Recruitment, Hiring and
on a simple idea: when we live our values, we for our employees, Board and Franchisees, Promotion Processes
25% 75%
succeed. Our approach to diversity, equity and as well as business diversity spend, including 2019
We seek to embed various practices into our
inclusion (DEI) focuses on three areas: our investment in diverse-owned media and 50% 50%
hiring and promotion processes to help promote 2020
production companies and content creators.
1 R
epresenting the diverse communities access to opportunities. For example, to create
65% 35%
in which we operate. For more diversity data, please see awareness of opportunities with our brand in the 2021
our Appendix on page 72. United States, we drive on-campus partnerships 47% 53%
2 A
ccelerating cultures of inclusion with various institutions, including those serving 2022
and belonging. minorities, prioritize the inclusiveness of our job 50% 50%
Employees postings, and attend a variety of career fairs and 2023
3 D
ismantling barriers to
workshops aimed at attracting top talent. We also FEMALE MALE
economic opportunity. We strive to be a place of opportunity for
everyone who works for our brand. We aim design interviews and interview guides to help
Whether it’s our talented employees, Franchisees support equity and fairness throughout selection, 29% 71%
to attract, retain and promote the best talent
or global network of suppliers, we are committed interview and offer processes. 2019
and to foster a feeling of belonging for all of
to creating pathways to success that help 28% 72%
our employees. And, because we know that 2020
everyone grow and thrive. We also strive to Internally, we promote job visibility to support
ambition is nothing without action, we underpin
create welcoming, inclusive experiences for our access to growth opportunities. We maintain 33% 67%
our commitment to our employees with robust 2021
communities around the world. Job Posting Guidelines outlining our requirement
policies and practices that are designed to 54% 46%
that, subject to limited exceptions, all roles in the 2022
foster an inclusive environment and to fuel their
Read more about our community efforts on U.S. (levels G6 and below) must be posted for five
career development. 52% 48%
page 65. days. By setting this expectation, we help drive 2023
awareness of internal opportunities.
To see more of our strategy in detail, visit our Inclusive Leadership UNDERREPRESENTED
GROUPS
WHITE
Diversity, Equity & Inclusion web page.

We are prioritizing the development of inclusive
leaders. Since 2022, we have offered an
Inclusive Leadership course for employees in
Director-level positions and above. The inclusive
leadership offerings are a supplement to the Definition:
on-demand online courses, virtual employee- 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,
led courses and a variety of other learning
or people having a combination of these identities or attributes. For purposes of McDonald’s reporting, including with respect to Human Capital
resources available from our learning and Metrics and Equal Pay, “Underrepresented Groups” is defined as people who identify as Black, Indigenous, Asian or Pacific Islander, people of
development team. Hispanic or Latino/a/x descent, or people having a combination of these identities or attributes.
All U.S.-Based Senior Director and Development and Leadership Accountability Board Diversity
Above Promotions3
Succession Plans and Governance Due to the global and complex nature of our
55% 45% We take tangible steps to develop our talent We’re serious about holding ourselves and our business, our Board believes it is imperative
2019 that its composition embodies a diverse set
pipeline to help ensure employees of all leaders accountable for driving an inclusive
50% 50% of viewpoints, perspectives, and experiences
2020 backgrounds are able to achieve their full culture, and doing so in accordance with local
potential at the Company. regulations and employment laws around to most effectively discharge its business
56% 44% oversight responsibility. Our Board also believes
2021 the world.
Corporate officers are asked to take steps having Directors of different genders, races and
46% 54%
2022 to put intentional succession plans in place To reinforce the importance of the Company’s ethnicities contributes positively to its balance
44% 56% to support the pipeline for leadership roles values, the Company’s annual incentive plan and effectiveness.
2023 throughout the organization. The expectations includes financial performance metrics, as well
FEMALE MALE are that these succession plans are an as strategic measures that hold executives As of the end of 2023, more than half of our
honest, viable, actionable depiction of the accountable for efforts toward the Company’s Board (58%) was comprised of Directors who
true readiness of the pipeline and provide DEI ambitions. are women or racially/ethnically diverse, and
30% 70%
2019 employees with the support needed for more than 30% of our Board was comprised of
upward advancement. female Directors.
37% 63%
2020
37% 63%
2021 Board of Directors4
TOTAL BOARD
24% 76% DIVERSITY
2022
27% 20% 7%
40% 60% 2022 53%
2023
33% 17% 8%
UNDERREPRESENTED WHITE 2023 58%
GROUPS
WOMEN BLACK H
ISPANIC
Representation of Women Women’s leadership representation at Corporate Staff: Global

McDonald’s – at the Senior Director and above
GOAL levels – has increased for the third year in a row. Senior Director and Above5
Gender balance is a critical underpinning of our
By the end of 2025, McDonald’s Global DEI ambition and we strive to achieve our
aspires to increase representation of goal through international work in support of our 2022 43% 2023 44%
women in leadership roles globally women globally.
(Senior Director and above) to 45%,
with an overall goal to reach gender
parity globally in leadership roles
(Senior Director and above) by the 2025 45% 2030 50%
Goal Goal
end of 2030.
PROGRESS
All Corporate Staff5
As of the end of 2023, 44% of
leadership roles (Senior Director and
above) globally are held by women.5 2022 55% 2023 55%
FEMALE MALE
Company-Owned and Operated Company-Owned and Operated

Restaurants: Global6 Restaurants: U.S.7
Manager Manager
59% 70%
2022 2022
62% 68%
2023 2023
Shift Manager and Crew Shift Manager and Crew
54% 57%
2022 2022
54% 57%
2023 2023
All Restaurant Staff All Restaurant Staff
54% 57%
2022 2022
54% 57%
2023 2023
WOMEN WOMEN
McDonald’s aims to have gender representation

at all levels of the organization, including at our
restaurants. Women play an essential role in
our restaurants, serving in the majority of shift
manager and crew positions and holding over
half of the Restaurant Manager roles globally.
Representation of Corporate Staff: U.S. 8
Underrepresented Groups Senior Director and Above

TOTAL
GOAL 7% 9% 9% 3%
2022 28%
By the end of 2025, McDonald’s 10% 10% 10% 3%
2023 33%
aspires to increase representation
of Underrepresented Groups in 2025
35% GOAL
leadership roles (Senior Director

and above) located in the U.S. All Corporate Staff
to 35%.1 11% 12% 12% 3% TOTAL
2022 38%
PROGRESS 12% 12% 13% 3%
2023 40%
As of the end of 2023, 33% of ASIAN BLACK HISPANIC OTHER
leadership roles (Senior Director

and above) located in the U.S. As we initiated planning for 2023, we took
are held by individuals in further action to evolve our talent strategies
Underrepresented Groups. 8 to support an inclusive pipeline through
Increased retention efforts, including
investments in external talent development
partnerships.
While we aim for continuous progress, we

acknowledge that sustainable change is not
a linear journey, and each year brings new
factors that may cause fluctuations. We remain
fully committed to taking steps that help
support progress toward our 2025 aspirational
leadership representation goal while remaining
transparent about our progress.
Company-Owned and Operated We believe in delivering fair, equitable Equal Pay for Equal Work We believe in compensating people fairly for
Restaurants: U.S.9 opportunities for all under the Golden Arches, the work they do, regardless of gender or any
and continuously aim to identify opportunities GOAL other protected characteristic. Compensation
Manager10 in which we can accelerate a culture of inclusion for Company employees – including both
TOTAL and belonging. When we talk about equity in the McDonald’s commits to close pay Corporate Staff and Company-owned and
9% 16% 36% 4%
2022 64% workplace, we mean fair treatment in access, gaps identified in annual equal operated restaurant employees – is established
8% 16% 38% 4% opportunity and advancement for all. We do this pay analyses for women globally based on factors that legitimately drive
2023 66% by combining technological tools with strategic differences in pay between employees, such
in Company-owned and operated
thinking and recruitment efforts informed by as relevant market conditions, job level,
markets and for Underrepresented
Shift Manager and Crew industry best practices that help us to attract, experience, performance and location.
Groups in the U.S. at Staff and
TOTAL retain and promote talent.
6% 21% 35% 10% Company-owned and operated
2022 72% We publicly stated our ongoing commitment to
7% 20% 34% 10%

restaurant levels. equal pay in 2021, supported by an annual pay
2023 71% gap analysis that aims to ensure equitable pay
PROGRESS practices across the Company.
All Restaurant Staff
TOTAL
Results of the 2023 pay gap
7% 21% 35% 10%
2022 72% analysis demonstrated continuous
7% 20% 35% 10% annual progress: women globally
2023 71% in Company-owned and operated
ASIAN BLACK HISPANIC OTHER
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 Groups 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.11
Franchisees Our U.S. Owner/Operator

Our U.S. Franchisees are not just proud small Associations: A Network
business owners but also the local faces of of Support
our brand. That’s why we believe it’s important
We believe that increasing access to
that the diversity of our Franchisees be
opportunities is vital to enhancing the diversity
representative of the communities we serve.
of our Owner/Operator (Franchisee) network.
To help remove potential barriers to economic
Once they have joined the McFamily, we
opportunities and help increase the number of
want to help Franchisees sustain a level of
new Franchisees from all backgrounds, we took
support, with Owner/Operator associations
strategic steps to further support advancement
that encourage shared learning and growth.
of representation among our Franchisee ranks.
Our Owner/Operator associations around the
world serve as valuable forums for Owner/
Franchisee Diversity: U.S. Operators to network, learn from one another,
share best practices and provide support for the
Approved Owner/Operators (Franchisees)2 communities they serve.
30%
2022
30%
2023
WOMEN I take pride in showcasing my
Approved Owner/Operators (Franchisees)2
job to people who look like me
TOTAL
and question whether they can
7% 12% 13%
2022 32% achieve something like this. I’m
8% 12% 13%
33%
proud to serve as the example to
2023
ASIAN BLACK HISPANIC
remind them they can do it too.
Andre Hill, Second-Generation Franchise Owner, Ohio

Franchisee Diversity Initiatives McDonald’s is a great system and Suppliers Progress With U.S. Systemwide
Around the World I’m especially excited to mentor To help bring about real impact, we work with a Spend With Diverse-Owned
Several countries took action in 2023 to help and train our young employees. diverse range of suppliers who share our values. Suppliers
support Franchisee diversification efforts. I am excited to roll my sleeves We fully understand that a chance to work
with McDonald’s is one that can change the GOAL
For example, McDonald’s UK & Ireland up and make a mark on
(UK&I) has set an ambition to be a “Best trajectory of a business, so we continually look
Geraldton, Australia. McDonald’s aspires to increase U.S.
in Class Franchisor” while also aiming to to welcome new businesses into our supplier
systemwide spend with diverse-
diversify its Franchisee community. To help network. We invite U.S.-based suppliers to
owned suppliers to 25% by the
drive recruitment of diverse Franchisees, From a 14-year-old crew person share our dedication to DEI, demonstrating
McDonald’s UK&I has focused on showcasing their shared focus by signing a Mutual end of 2025.
starting at McDonald’s in a casual Commitment to DEI (MCDEI) pledge. As of the
franchise opportunities through internal and
external communications.
job while I was at school to 23 years end of 2023, 540 U.S.-based suppliers have PROGRESS
later becoming a McDonald’s signed the MCDEI pledge. McDonald’s U.S.
As of the end of 2023, our U.S.
McDonald’s Australia recently announced an systemwide spend with U.S.-based MCDEI
Franchisee, this is nothing short systemwide spend with diverse-
investment of approximately $600 million to signatories was $15.6 billion in 2023.
open 100 new restaurants by the end of 2025.
of a dream come true. owned suppliers was 26.2%, resulting
To keep pace with these ambitious growth During 2023, we also continued our work to in McDonald’s reaching its 25%
targets, the business is actively recruiting new engage and celebrate suppliers living the value diverse-owned supplier aspirational
Katie Nicholson, Franchise Owner
Franchisees. This includes external business of inclusion. This included launching a supplier
spend goal for the third year in a row.12
leaders, as well as a focus on developing newsletter where we highlight impactful
high-potential talent from within the stories demonstrating how our suppliers are
championing inclusion and the impact that has We will continue to focus on our efforts to increase
System, and creating clear pathways toward
for their organizations and communities. engagement with diverse-owned suppliers.
franchise ownership for Corporate Staff and
Restaurant Staff.
% Spend Through U.S. System With Diverse-Owned Suppliers12
TOTAL
1.5% 4.2% 14.2% 0.6% 4.5%
2022 25.0%
1.6% 4.1% 15.1% 1% 4.4%
2023 26.2%
25% GOAL
2025
ASIAN BLACK HISPANIC OTHER WOMEN
SUPPLIER SPOTLIGHTS Progress With U.S. Marketing with, diverse-owned media and production
companies and content creators to enable
Investment Spend With Diverse-
deeper, more inclusive storytelling.
Embedding Inclusivity From Demonstrating DEI Progress Owned Media and Production
the Top at Lamb Weston at Antunes Companies and Content Creators As of the end of 2023, McDonald's USA and
its U.S. Franchisees saw an increase in the
A supplier of potatoes to McDonald’s, For more than 50 years, Antunes has been Among other efforts, we aim to increase national percentage of investments with diverse-
Lamb Weston is strengthening its DEI a valued McDonald’s supplier. Women- investments in diverse-owned media and owned media and production companies and
commitment by setting inclusion as owned, the kitchen innovations company production companies and content creators for content creators to 13.4%13 – up from 8.5% in
an official company value. To bring is dedicated to developing a culture McDonald’s USA and its U.S. Franchisees to 15% 2022. Throughout the year, we maintained key
this commitment to life, Lamb Weston of diversity and inclusion across the by the end of 2024. partnerships that allowed us to scale our work
has implemented a series of initiatives organization. This includes embedding with media companies that have been proven to
Since 2021, our U.S. Marketing team has drive business results.
designed to cultivate an inclusive culture a global DEI strategy within each of its
been implementing strategies to advance
from the top, including launching a manufacturing plants. It also involves
investments in, and business relationships
Leadership Training Program. Lamb offering a series of apprenticeships,
Weston has also developed programs scholarships and tuition reimbursement
and business resources groups (BRGs) to programs designed to help develop its
support employees in advancing personal talent pipeline, including diverse talent.
% U.S. Marketing Investment Spend13
DEI journeys, with a learning library,
conversation series and monthly DEI forum. A signatory of the Mutual Commitment
National Diverse-Owned Media and Production Companies and Content Creators
Finally, to inspire shared learning of what to DEI (MCDEI) pledge, Antunes is also
prioritizing diversity in its own supply TOTAL
inclusion means at Lamb Weston, leaders 1.9% 3.3% 1.7% 1.3% 0.3%
chains, demonstrating clear progress 2022 8.5%
are encouraged to host conversations with
their teams on what they can do to actively toward increasing spend with more 4.6% 4.6% 2.4% 1.5% 0.3%
diverse suppliers from across Asia, 2023 13.4%
create a more inclusive culture.
Central America and Europe. And, through 15% AMBITION
2024
it all, Antunes has developed strong
ASIAN BLACK HISPANIC WOMEN LGBTQ+
relationships with community partners
to better support diverse communities,
businesses and leaders.
Talent & Benefits

Our Company The People We The Money We Contribute
Help Train Toward Education
Led by the Company’s core We believe providing a best-in-class
values, we are committed employee experience – where people 150,000+ 17 million+ $25 million+
are given opportunities to learn and
Company employees Hamburger University courses contributed through the 2023
to fostering workplaces develop – is a business imperative.
worldwide completed by Restaurant tuition assistance program by
where employees feel By looking after the people who work
for the Company, we feel we can better Company employees, which Staff and Corporate Staff McDonald’s and its Franchisees
empowered to pursue their in the U.S.
equip and support them to deliver include Corporate Staff (those
career aspirations with enhanced customer experiences. in the Company’s corporate
Since opening in Illinois in 1961,
Hamburger University (HU) has McDonald’s and its U.S.-based
access to opportunity. and other offices) as well as
grown to have nine campuses Franchisees contributed over $25 million
Restaurant Staff in Company-
globally as of 2023. Through in tuition assistance for Restaurant
owned and operated restaurants,
providing training for Company Staff in the U.S. in 2023. The Archways to
totaled over 150,000 worldwide as
employees, as well as for Opportunity program offers eligible U.S.-
of year-end 2023. The Company
Franchisees and their employees,14 based Restaurant Staff at participating
focuses on the recruitment,
HU has helped prepare thousands restaurants financial support to help
retention and development of
of people for leadership positions them pursue goals such as graduating
these employees.
in the McDonald’s System. from college, earning a high school
diploma, learning English and gaining
access to academic and career advice.
Our Strategy in Brief Our Performance Annual Career Conversations are opportunities Learning and Development
for Company employees to discuss career plans
McDonald’s vision is to be an iconic talent We’re working to improve employee experiences with their People Manager and receive guidance Our learning and development approach is a
destination – known as much for its people through smart investments in people, on how to pursue them. competitive advantage to McDonald’s and a true
experience as for the Golden Arches. Based on processes and technology. differentiator to the employee value proposition.
our belief that the employee experience can People Manager Connections
positively impact the customer experience, We want to create a culture where the In 2023, Corporate Staff completed 112,000
We are committed to the growth and
we are relentlessly focused on running great Company’s employees feel empowered to courses, while Restaurant Staff completed more
development of our People Managers,
restaurants, empowering our people and drive business impact and pursue their career than 17 million, including HU restaurant and
recognizing the key role they can play in
continuing to modernize our ways of working. aspirations. Through the Company’s talent leadership curricula, and eLearning courses.
supporting and advancing their teams.
We have designed and are deploying strategic processes and supporting resources, we are We have taken steps to help make shift leader
That’s why we launched the People Manager
human resources and talent management evolving to help build high-performing and training more accessible through additional
Connection series – education sessions
processes that help support our long-term highly engaged teams. class openings and, as a result, the number of
designed to help Company employees who
business strategy. U.S.-based shift leaders trained increased by
are People Managers explore key topics,
Career Planning and 25% in 2023 compared to 2022.
understand what’s expected of them and
Key to this strategy has been the development
Development Philosophy learn from one another. Also in 2023, we launched several programs
of an initiative to build the foundation for a
seamless, personalized employee experience In 2023, a Career Planning and Development designed to support employee advancement,
We held seven People Manager Connection
and to transition our talent processes to a Philosophy website for Corporate Staff went including:
sessions in 2023, which covered important
digital format. This initiative will establish live. The website documents the Company’s • A Hospitality module in the U.S. for new
topics such as Leading through Uncertainty,
“Glocal” (globally leveraged and locally relevant) commitment to helping its employees on their Restaurant Staff.
Psychological Safety, Managing through
processes and simplify the Company’s career journey through a philosophy deeply
Transitions, Cultural Norms, Career Planning • Activate, a Consulting Great Restaurants
technology landscape with four transformation rooted in the Company’s purpose, mission
and Development, Assessing and Rewarding program for global new-to-role
objectives: elevate the McDonald’s employee and values.
Talent, and Abridged Accelerate. operations-facing consultants.
experience; gain efficiency; improve workforce
management; and enable advanced data The Philosophy guides Company employees in • Accelerate, a leadership development
analytics, insights and reporting. Achieving these how to develop their careers and details how the experience delivered in 32 sessions to over
objectives will help create internal visibility into Company can build strong leadership pipelines. 900 Directors and above across 17 markets
the full breadth of talent at the Company. There are many ways we put it into action: we and regions.
have created the Career Navigator guide for
• A Franchisee Development Program.
See the Talent & Benefits strategy and employees to use when exploring tools, services
programs in detail on our website. and offerings available to help their career
journeys; we also provide resources to help
People Managers develop employees’
skills to support their career aspirations.
Hamburger University Archways to Opportunity CASE STUDY

HU is McDonald’s center of training excellence, Archways to Opportunity® offers eligible
designed to upskill and reskill employees U.S.-based Restaurant Staff in participating
globally, create a culture of continuous learning restaurants financial support to help them Advocating for the Value of Now, having completed her degree in
2023, Stephanie’s wish is for more people
and instill a strong sense of pride. It allows achieve goals such as graduating from college, Archways to Opportunity
to learn about Archways to Opportunity.
employees to grow in their current role and helps earning a high school diploma, learning English
Having started at a McDonald’s restaurant Her goal is to remove what she calls
prepare them for the next level of responsibility, as a second language and gaining access to
as a crew member 20 years ago, Stephanie the McDonald’s stereotype: “The
combining hands-on experience, networking academic and career advising services. As of
Gafford has since been promoted several stereotype that people think if you work
and mentoring, and structured classes – both year-end 2023, the program had:
times – to Manager, General Manager and at McDonald’s, you are uneducated –
on-site and online.
• Awarded over $200 million in tuition assistance Training Coordinator, in which she has been because that’s not true! At McDonald’s we
to Restaurant Staff. working for over five years. In this Training are educating people.”
In 2023, we expanded HU with a new Learning
Center in Riyadh, Saudi Arabia, bringing the total • Awarded tuition assistance to more than Coordinator role, she is an advocate of the
number of physical HU locations to nine as of 65,000 Restaurant Staff. Archways to Opportunity program.
year-end.
• Supported nearly 2,000 graduates of the Stephanie completed a BSc in Business
• Chicago, IL Career Online high school program. Administration from Colorado Technical
I have such a passion for
• Johannesburg, South Africa • Supported more than 8,800 graduates of University with the support of Archways this program that being
• London, United Kingdom
English Under the Arches program. to Opportunity. The university’s program able to do this as my job
structure allowed Stephanie to effectively
is truly amazing!
• Munich, Germany manage her time throughout the week – she
Compensation and Wages would spend a few hours on schoolwork and
• São Paulo, Brazil
still be able to handle her work duties and be Stephanie Gafford, Training Coordinator (Employee
• Shanghai, China Market Focus: Restaurant Staff Wages in with her family. of McDonald’s Owner/Operator Randi Ray)
the U.S.
• Sydney, Australia
During 2023, we designed and proposed a third-
• Tokyo, Japan
party wage advisory service to be piloted with
We also brought HU Online to eight additional a group of U.S.-based Franchisees beginning in
markets in 2023. HU Online is live in 70 markets early 2024. The optional wage advisory service is a
around the globe as of year-end 2023. Company investment designed to provide U.S.-
based Franchisees with resources and education to
help them make third-party-supported wage and
compensation decisions for their own businesses
based on benchmarking of locally available data.
Notes 3 Data includes U.S. paid employees only. All U.S. paid employees working in 7 Representation of Women – Company-Owned and Operated Restaurants: Poland, Austria, Belgium, Switzerland, Netherlands, Spain, Italy, Portugal. In
other markets are excluded. This data reflects U.S. employees who voluntarily U.S.; Manager addition to these countries, descriptive analysis without statistical modeling
Our diversity data disclosures have been prepared for a broad range of disclosed race/ethnicity information. This data was obtained from two has been conducted over the employees in the following countries: Singapore,
stakeholders, including, but not limited to, our employees, Franchisees, different collection processes which was then reconciled and integrated. 2022 Hong Kong, UAE (Dubai) and Ireland. These countries have been excluded from
customers, suppliers and investors, as well as nonprofit organizations and other Due to rounding, some totals may not correspond with the sum of the Manager includes General Managers and Assistant Managers only. the statistical modeling due to insufficient headcount. High-level U.S. roles
third parties. All data is reported as of December 31 of the stated calendar year. separate figures. (VP+) are excluded from the U.S. dataset both for U.S. and Global results.
2023
The inclusion of information in our report is not an indication that such 4 Board Diversity Manager includes all salaried managers in the restaurant. 12 % Spend Through U.S. System With Diverse-owned Suppliers:
information is material in the context of our financial statements, filings with the All female Directors who served on the Board in 2022 identify as White or U.S. systemwide spend is inclusive of spending by McDonald’s and its U.S.
8 Representation of Underrepresented Groups – Corporate Staff: U.S.; Senior
U.S. Securities and Exchange Commission (the “SEC”) or other public statements. Caucasian. The percentages for 2022 are as of December 31, 2022. Due to Franchisees. “Other” includes the following categories: Veteran-owned, Native
Director and Above, and All Corporate Staff
Further, the data contained in this report has not been audited or verified by any rounding, some totals may not correspond with the sum of the separate figures. American-owned, Disabled-owned, LGBTQ+-owned, and other unidentified
third party. While such data represents the best information available at the time 2022 categories, including unidentified Minority (MBE)-owned.
of publishing this report, it is subject to certain limitations related to, among other 2023
Data includes U.S. paid employees only. All U.S. paid employees working in
things, the data collection processes in place at the time such data was collected. All female Directors who served on the Board in 2023 identify as White or 2022, 2023
other markets are excluded. This data reflects U.S. employees who voluntarily
Our data collection processes continue to evolve and enhance over time. Some Caucasian. The percentages for 2023 are as of December 31, 2023. Due to This figure includes supplier spending by all restaurants, whether owned and
disclosed race/ethnicity information. Due to rounding, some totals may not
data in the report has been restated and is noted in the footnotes for the relevant rounding, some totals may not correspond with the sum of the separate figures. operated by McDonald’s or by Franchisees. Further, this figure is inclusive
correspond with the sum of the separate figures.
data on a case-by-case basis. of U.S. Company-owned and operated restaurant spend, Supply Chain,
Effective May 25, 2023, Robert Eckert and John Rogers, Jr. retired from the Restaurant Development, Marketing, Legal, Global Technology, Workplace
2023
Our diversity data disclosures also contain forward-looking statements and goals, Company’s Board of Directors. Solutions, Global Impact, Finance, Global People and other corporate
Data includes U.S. paid employees only. This data reflects U.S. employees
which reflect management’s aspirations regarding the future and speak only as of who voluntarily disclosed race/ethnicity information. This data was obtained functions. This figure also includes purchases made by Franchisees for
5 Representation of Women – Corporate Staff: Global; Senior Director and
the time of publishing this report. from two different collection processes which was then reconciled and advertising, restaurant development, technology, food, distribution, packaging,
Above, and All Corporate Staff
integrated. Due to rounding, some totals may not correspond with the sum equipment and uniforms. This scope excludes non-controllables (Taxes,
Forward-looking statements involve a number of risks and uncertainties. Factors
2022, 2023 of the separate figures. Utilities, Rent, Aircraft Fuel, Airport Fees, Facility Leases, Donations, Bank Fees
that could cause actual results to differ materially from our goals are detailed in
Data includes aggregate numbers from Australia, Austria, Belgium, Canada, and Subscriptions).
our filings with the SEC. We undertake no obligation to update such forward- 9 Representation of Underrepresented Groups – Company-Owned and
Czech Republic, France, Germany, Italy, the Netherlands, Poland, Portugal,
looking statements, except as may otherwise be required by law. Operated Restaurants; U.S.; Manager, Shift Manager and Crew, and All Our diverse-owned diversity spend figures in the U.S. include both self-
Slovakia, Spain, Switzerland, Ukraine, the U.K. and the U.S. Corporate
Restaurant Staff certified and formal industry-recognized certification and Tier 1 and Tier 2
All Company goals set forth in this report are aspirational in nature. employees who support our Developmental Licensees are also included. Data
spend. Tier 1 suppliers are those from whom McDonald’s buys directly. Tier 2
was obtained through various means, including informal identification and
This data reflects U.S. employees who voluntarily disclosed race/ethnicity suppliers are those with whom our suppliers do business.
1 In the U.S., the term “Underrepresented Groups” generally means people who voluntary self-disclosure.
information.
identify as Black, Indigenous, Asian or Pacific Islander, or otherwise as people
Additionally, the gender diversity figure excludes women from Underrepresented
of color, people of Hispanic or Latino/a/x descent, people with disabilities, 6 Representation of Women – Company-Owned and Operated Restaurants:
10 Representation of Underrepresented Groups – Company-Owned and Groups, who are reflected in the racial/ethnic demographic data.
people who identify as LGBTQ+, people from religious minorities, or people Global; Manager, Shift Manager and Crew, and All Restaurant Staff
Operated Restaurants; Manager
having a combination of these identities or attributes. For purposes of Diverse-owned suppliers refers to businesses that are 51% owned, managed
2022
McDonald’s reporting, including with respect to Human Capital Metrics and 2022 and controlled by women and/or Black, Hispanic, Asian, Indigenous, Veteran,
Data includes aggregate numbers from Australia, Canada, Germany, Italy, the
Equal Pay, “Underrepresented Groups” is defined as people who identify as Manager includes General Managers and Assistant Managers only. LGBTQ+ and disabled persons or people having a combination of these
Netherlands, Poland, Spain, Switzerland, Ukraine, the U.K. and the U.S. Data
Black, Indigenous, Asian or Pacific Islander, people of Hispanic or Latino/a/x identities or attributes.
was obtained through various means, including informal identification and 2023
descent, or people having a combination of these identities or attributes.
voluntary self-disclosure. Manager includes all salaried managers in the restaurant. Due to rounding, some totals may not correspond with the sum of the
2 Approved Owner/Operators (Franchisees): Due to rounding, some totals separate figures.
2023 11 Underrepresented Groups Pay Gap Analysis Results (U.S.): The analysis
may not correspond with the sum of the separate figures.
Data includes aggregate numbers from Australia, Austria, Canada, France, is conducted on U.S. employees who voluntarily disclosed race/ethnicity 13 Marketing Investment Spend (National Diverse-Owned Media, Production
2022, 2023 Germany, Italy, the Netherlands, Poland, Portugal, Slovakia, Spain, Switzerland, information. Companies and Content Creators):
Data was obtained through various means, including affinity group Ukraine, the U.K. and the U.S. Data was obtained through various means, Paid Media investment represents contracted dollars with suppliers.
membership, informal identification and voluntary self-disclosure. As of including informal identification and voluntary self-disclosure. 2022
June 2020, McDonald’s Registered Applicant process for new Franchisees The following countries are included in the analysis: the U.S., Canada, France, The classification of media, production companies and content creators as
2022 Germany, the U.K., Australia, New Zealand, Czech Republic, Slovakia, Poland, diverse-owned suppliers is determined by both self-certification and third-
includes voluntary self-identification, which has strengthened our data
Manager includes General Managers and Assistant Managers only. Austria, Belgium, Switzerland, Netherlands, Spain, Italy, Portugal. In addition party certification.
collection efforts. 2020 through 2022 data for existing Franchisees continues
to reflect information obtained through affinity group membership, informal to these countries, descriptive analysis without statistical modeling has been
2023 Due to rounding, some totals may not correspond with the sum of the
identification and voluntary self-disclosure, outside of the Registered conducted over the employees in the following countries: Singapore, Hong
Manager includes all salaried managers in the restaurant. separate figures.
Applicant process. More information regarding the Registered Applicant Kong, UAE (Dubai) and Ireland. These countries have been excluded from the
process can be found in Franchising FAQs. statistical modeling due to insufficient headcount.
14 Franchisees are independent employers and select which of their employees
2023 attend Hamburger University.
The following countries are included in the analysis: the U.S., Canada, France,
Germany, the U.K., Australia, New Zealand, Czech Republic, Slovakia, Ukraine,
Community Connection
With more than 41,000 restaurants globally
as of the end of 2023, McDonald’s has a
unique connection with communities the
world over. We believe that comes with a
responsibility to help support the people
within them.
We seek to act both globally and

locally, supporting those who need it
most. Whether it’s helping advance
employment opportunities for young
people, stepping up in times of crisis
or helping families whose children
are sick or injured, we seek to make a
positive difference in our communities
around the world.
IN THIS SECTION
65 Community Impact & Philanthropy
69 Ronald McDonald House Charities
Community Impact & Philanthropy

We’ve reached 2.2 million young people with training and hiring
Company-owned Restaurants
opportunities, achieving our Youth Opportunity goal ahead of time.
We take our responsibility of By thinking globally and acting
locally, we can be better equipped
supporting people seriously
to effectively support anyone who
‒ because we believe that As of 2023, we are proud to have reached more than 2 million young people with
works at or enters a McDonald’s
support for community-based training and hiring opportunities in McDonald’s
when our communities restaurant and the communities we
restaurants, two years ahead of our 2025 deadline. As we look to the future, we will
thrive, so does McDonald’s. are all a part of.
assess potential new opportunities to build on the progress we have made so far.
McDonald's has repeatedly acted
as a resource during times of need –
showing up to help support people in
the communities it serves. Other ways we were there Relaunched an investment
strategy supporting Chicago
for those in need in 2023
organizations to advance
youth opportunities.
Made an annual pledge of Provided financial assistance

$1 million to the American Red to U.S. Company Restaurant
Cross Annual Disaster Giving Staff through the McDonald’s
Program (ADGP). Operating Company (McOpCo)
Employee Relief Program.
Order
Here
Donated one penny from every Donated excess food in
Happy Meal sold at participating cooperation with suppliers
U.S. restaurants to Ronald to support families in need.
McDonald House Charities (RMHC),
totaling over $5.9 million.
Our Strategy in Brief Our Performance the Breaking Barriers Scholarship in partnership In 2023, McDonald’s Corporation donated
with the Oxford Farming Conference. In 2023, $500,000 to earthquake relief efforts in Turkey,
We aim to build strong and inclusive connections five scholarship recipients were offered the including contributions to Save the Children
that deliver on the needs of the communities Representing the Communities
opportunity to see first-hand careers available in and World Central Kitchen. The local business
McDonald’s serves, because we believe that in Which We Operate food and farming and to share experiences. also donated over $200,000 to local charities
doing so is consistent with the Company’s to support communities impacted by the
business objectives and values. We are focused Chicago: Contributing at Home Supporting Communities earthquake.
on partnering with organizations that share our
Company’s core values, harnessing our size and
As a large employer headquartered in Chicago, in Need Locally Driven Needs: The Company’s
we believe we have a responsibility to help
influence to help maximize collective impact 2023 Actions
address urgent community needs through Disaster Response
while also strengthening relationships with the
strategic investments and engagement. It’s We are dedicated to supporting communities in
communities we serve. In 2023, employees from the McDonald’s System
why we launched a Chicago Community Impact times of need and have taken several actions to
made charitable contributions to support the
Grants Program together with The Chicago advance this in 2023, including:
Our Community Impact & Philanthropy strategy American Red Cross relief efforts, including
Community Trust to invest in neighborhood
focuses on three key strategic outcome areas: donations made in response to the wildfires in • Renewing the Company’s American Red
organizations advancing youth opportunity. In
Maui, and we donated $40,000 to the Hawaii Cross Annual Disaster Giving Program
1 S
upporting families: Help address the needs 2023, we deepened our commitment to 18 of
Community Foundation’s Maui Strong Fund (ADGP) partnership, committing a $1 million
of families and their well-being through the these organizations, helping to ensure that they
to support recovery needs. Additionally, the donation to proactively support global disaster
support of Ronald McDonald House Charities. have the resources to support skills development
Golden Arches Merchants Association of Hawaii relief efforts.
in young people to ready them for a myriad of
provided $25,000 to impacted McDonald’s • Offering hardship and disaster relief for
2 T
imes of need: Help respond to the needs of potential career pathways.
Company and Franchisee employees in Lahaina, Company Restaurant Staff in the U.S.
people and communities in the face of crisis
Breaking Barriers: Progressive Young Farmers Hawaii, and the Asian McDonald’s Operator
and hardship. • Donating one penny from every Happy Meal
Association donated $25,000 to support local
Over the last 10 years, McDonald’s UK & Ireland sold at participating McDonald’s in the U.S. to
3 O
pportunity employment: Help reduce employees in Hawaii. Company employee
Progressive Young Farmers Program has evolved RMHC, totaling over $5.9 million.
systemic barriers to employment. donations totaling over $53,000 were made via
to embed diversity, equity and inclusion at its
the Company’s online donation portal to support • Donating $1 million to support the
core. As of August 2023, over 70 young people
the American Red Cross’ Hawaii relief efforts. Founder’s Circle of Operation HOPE, an
have joined the program, including 62% women
Read more about our community impact and organization whose mission is to expand
and 25% from non-farming backgrounds, each Through the McOpCo Employee Relief Fund,
philanthropy on our website. economic opportunity in underserved
experiencing 12 months within our supply chain we provided financial support to 28 employees communities through financial education
to kick-start their career in food and farming. In in 2023 following hurricanes, crime, vehicle and empowerment by offering programs that
2020, the program evolved with the launch of accidents, death and domestic abuse. create stabilized communities and financial
stakeholders.
We also help amplify the impact of U.S. employee including beach cleanups, food preparation We recognize many populations face barriers to Senior citizens: McDonald’s Korea currently
donations, matching funds donated to certain and delivery, youth training and tree planting employment around the world, including but not employs approximately 650 senior crew
nonprofits by U.S. employees up to $5,000 activities to help make a difference in their limited to youth, refugees, senior citizens and members (aged 55 and over), an increase of over
($10,000 for a Vice President or above, or a Board local communities. people with disabilities. As we look to the future, 34% versus 2022. This market actively recruits
member). In 2023, we matched nearly $816,000 we will assess potential new opportunities to seniors as part of its open recruitment policy
in employee donations and, since 2015, have The U.S.: McDonald’s USA and its suppliers in the build on the opportunity employment progress and, in 2023, signed an agreement with Seoul
matched over $5.3 million through this offering. U.S. donated over 1.5 million pounds of food and we have made so far. Metropolitan Government’s 50 Plus Foundation
paper combined from suppliers and distribution to create employment opportunities for those
Philanthropic Investments centers – worth more than $4.6 million – to Examples of the Company’s and Its Franchisees’ aged 40 and over.
support local U.S. food banks and communities. Opportunity Employment Impact Across the Globe
Food and Supplies Donation A McDonald’s Franchisee in Taiwan has been
Youth: In the U.S., McDonald’s has partnered
Youth Opportunity Program with the International Youth Foundation (IYF)
advocating for “Intergenerational Integration” at
Throughout 2023, we made food and supply work and provides an inclusive work environment
donations to help communities meet their and nine local community-based organizations
GOAL for senior citizens, as well as new immigrants and
basic needs. to deliver life skills training called Passport to
homemakers. From 2020 to 2023, there has been
Success to young people from households
By the end of 2025, reduce barriers a 59.8% increase in older employees. The market
Examples of Our Impact Across the Globe with incomes at 200% of the federal poverty
to employment for 2 million young has been recognized by the Labor Department
line or less.
Asia: Employees and Restaurant Staff across people. for its dedication to promoting senior citizen
11 countries in Asia participated in Community Refugees and displaced populations: employment.
Month, with volunteers taking part in various PROGRESS Achieved early McDonald’s hires and trains refugees in multiple
activities and food donation events to support People with disabilities: A McDonald’s
markets and is actively exploring how to expand
under-resourced children and families. For As of December 2023, we have these initiatives. In 2023, we joined the Tent
Franchisee in Guatemala, El Salvador,
example, in the Philippines, over 460 employees achieved our Youth Opportunity Partnership for Refugees – a global network
Honduras and Nicaragua provides employment
participated in 27 “Good Trip” volunteer events, goal ahead of our target year. To opportunities to people with disabilities
of over 400 companies committed to helping
distributing over 3,000 meals to community through its Labor Integration, “Programa de
date, 2.2 million young people have refugees connect to jobs – to further accelerate
members in need. Destinate Habilidades.”
participated in training programs our refugee inclusion efforts.
Latin America and the Caribbean: To and/or been hired in McDonald's In collaboration with external organizations,
commemorate Global Volunteer Month, over 975 Company-owned and operated or a McDonald’s Franchisee in Pakistan created
team members from Arcos Dorados (the largest participating Franchisee restaurants.1 the “I’m Perfect program” to provide workforce
McDonald’s Developmental Licensee, with opportunities to individuals with disabilities,
operations in Latin America and the Caribbean) primarily including individuals with hearing and
participated in numerous volunteer activities, speech impairments.
Volunteerism Examples of Our Global Volunteer Month Impact China: McDonald’s China employees organized Families and Their Well-Being
Across the Globe various philanthropic activities. In Shanghai,
Volunteering is one of the most significant Beijing and Hunan, employee volunteers and
Azerbaijan: 40 McDonald’s Azerbaijan Supporting Ronald McDonald House Charities
ways employees in the McDonald’s System can their children visited Ronald McDonald House
employees volunteered to clean up garbage Included in our Community Impact &
support the charities that they care about. programs to engage in crafts and play with
from the Caspian coast. Philanthropy strategy is McDonald’s continued
children. In several cities, including Beijing and
The Company’s Global Volunteer Month was support for Ronald McDonald House Charities
Canada: Employees in McDonald’s Canada Guangzhou, employees ran “Charity Bazaars,”
held in September 2023 and served as an (RMHC).
showed community support by volunteering raising over RMB 50,000 for the China Soong
opportunity for McDonald’s System employees
more than 200 hours with various causes across Ching Ling Foundation to support Ronald
to support meaningful causes. During the In 2023, we donated $20 million to RMHC as
the country. In Burnaby and Toronto, volunteers McDonald House programs. Other regions,
month, over 12,000 McDonald’s System part of our five-year, $100 million commitment.
prepared on-the-go wellness kits and greeting such as Fujian and Zhejiang, partnered with
employees volunteered more than 28,000 hours The gift is helping RMHC through direct
cards and bagged lunches for families being nongovernmental organizations (NGOs) to
to community causes in over 30 countries. This financial support that will be used for RMHC
supported by a Ronald McDonald House or deliver meals to front-line workers, provide
represented a more than 60% increase in hours Chapter capacity building, initiative activation
Ronald McDonald Family Room; in Toronto, internships for disabled teens and organize city
and a more than 40% increase in volunteers and resource development. We make it easy
they also planted trees, shrubs and wildflowers. tours for disabled children.
compared to 2022. for McDonald’s customers to support RMHC,
In Dorval, volunteers supported the largest too, through various on-site and digital giving
food bank in Canada, Moisson Montréal, while opportunities. In some locations, McDonald’s
in Victoria, B.C., volunteers prepared meals restaurants donate a percentage from the sale of
for people at Jenecee Place near the Victoria specific products to local RMHC Chapters or run
General Hospital. other special promotions benefiting RMHC and
its network of local Chapters.
Find out more on page 69 or on our dedicated

RMHC web page.
Ronald McDonald House Charities

What Ronald McDonald House Charities Does
Ronald McDonald House Through a global network of over 258 Through three core global programs and hundreds of local programs, RMHC pursues its mission
Chapters in more than 60 countries as to remove barriers, strengthen families and promote healing when children need healthcare.
Charities (RMHC)2 is
of the end of 2023, RMHC envisions
a nonprofit 501(c)(3) a world where every family has what
organization whose they need to ensure the best health
Ronald McDonald In 2024, we joined RMHC
House programs: More than just a in celebrating 50 years
purpose is to care for outcomes for their children.
place to sleep, each House is near
of their mission.
families when their child The Company, its Franchisees and a hospital and provides meals and
is sick or injured. McDonald’s customers donated a range of supportive services to
approximately $212 million to RMHC families with a hospitalized child. Ronald McDonald Family
in 2023, helping the charity provide Room programs: Located within
approximately 2.7 million overnight a hospital, this program offers
stays for RMHC families around Ronald McDonald Care families a place to recharge, rest and
the world.3 Mobile programs: In partnership access food at no cost, all within a
with a clinical services provider, few steps of their child’s bedside.
these mobile units provide
medical, dental and healthcare
resources to children and families In addition to the three core
in underserved communities. global programs, RMHC Chapters
have developed hundreds of local
programs that are tailored to address
As the first corporate sponsor and unmet needs and help make a
mission advocate of RMHC, the difference in the lives of the families
Company is proud to hold the title and children they serve.
of “founding and forever partner.”
Visit www.rmhc.org
The Company’s Actions in 2023 Our Strategy: The Company and • Canada – Over $13 million3 was raised for • Romania, Spain and Malta – A number
RMHC Canada through in-restaurant giving of RMHC Local Chapters in Europe sell
Here are just a few examples of the Company’s RMHC Working in Partnership
efforts, including McHappy Day, special stuffed animals at participating McDonald’s
activities in support of RMHC in 2023: Collective support from the Company, and its product promotions, Donation Boxes and the restaurants, with proceeds being donated
• McDonald’s Corporation donated $20 million Franchisees, suppliers and customers, helps Round-Up for RMHC programs across Canada. to the local RMHC Chapters. Participating
to RMHC as part of its five-year, $100 million RMHC deliver on its mission. The Company’s restaurants in Romania, Spain and Malta
• Australia – More than $9 million3 was raised for
commitment to help support families when ongoing support of RMHC is consistent collectively raised more than $180,0003 for
RMHC Australia through in-restaurant giving
they need it most. with its purpose, which is to feed and foster their RMHC Local Chapters in 2023 from
efforts and special promotions, including
communities, and the Company is proud to be such sales.
• RMHC Local Chapters reported that more McHappy Day.
more than a founding partner of RMHC – and
than 42,000 individuals from the McDonald’s • New Zealand – Participating McDonald’s
to be its forever partner.
System volunteered with RMHC in 2023. restaurants in New Zealand supported their Supporting Team RMHC at
See our RMHC strategy and programs in local RMHC programs by contributing 10 cents
• The “Round-Up for RMHC” program, which the Bank of America Chicago
allows customers at participating restaurants detail on our website. (NZ) from every Happy Meal sold in 2023, raising
nearly $380,000.3 Marathon
to round up their purchase to the nearest
whole number of their local currency, with the McDonald’s Corporation sponsored the Bank of
Helping Customers Give to RMHC • Japan, Philippines, South Korea, South
difference being donated to RMHC, raised Africa and Egypt – Participating McDonald’s America Chicago Marathon in 2023 and provided
$53 million3 in 2023 based on reports from Round-Up for RMHC, Donation Boxes, in- restaurants in Japan, the Philippines, South a $175,000 grant to support Team RMHC. In
RMHC Local Chapters, $39 million of which restaurant events like McHappy Day (where a Korea, South Africa and Egypt hosted Happy 2023, RMHC leveraged its sponsorship to
was raised in the U.S. portion of sales from that day support RMHC Meal promotions for the benefit of each engage over 1,300 runners and raise more than
Local Chapters) and other special promotions country’s respective RMHC Chapter, raising $2 million.
allow customers to join in giving back to RMHC. nearly $1.1 million3 collectively in 2023.
Throughout race weekend, nearly 75 volunteers
Examples of such promotions in 2023: • Argentina – More than $1 million3 was raised supported Team RMHC, including 15 McDonald’s
for RMHC Argentina in 2023 by participating Corporation employees.
• United States – In the U.S., one penny from
McDonald’s restaurants in the country during
every Happy Meal sold at participating
2023 McHappy Day.
McDonald’s restaurants in 2023 was donated
to RMHC, totaling $5.9 million. Additionally, • Brazil – More than 1,000 McDonald’s
more than $51 million3 was donated through restaurants in Brazil hosted a McHappy Day
the Round-Up for RMHC program and and raised $4.1 million3 in 2023.
Donation Boxes.
Notes
1 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.
2 Ronald McDonald House Charities and RMHC are trademarks of McDonald’s

Corporation and its affiliates. RMHC is a nonprofit 501(c)(3) organization.
3 All donation and monetary figures have been converted to U.S. dollars and are
approximate.
Appendix
2023 Pay Gap1 Analysis EEO-1 Component 1 Data Read more about our Diversity, Equity and
Inclusion strategy as well as further details
In the U.S., the EEO-1 Component 1 report is a about McDonald’s strategy and definitions
mandatory annual data collection that requires on Our Purpose & Impact pages of our
all private sector employers with 100 or more corporate website.
Total Employees Women Underrepresented Groups
Amount earned on the dollar Amount earned on the dollar
employees to submit demographic workforce
by women compared by Underrepresented Groups data, including data by race/ethnicity, gender Previous Reports
to men for similar work compared to nonminority and job categories. While not required, in
peers for similar work E
EO-1 Component 1 Data 2023
alignment with our journey of accountability and
transparency, McDonald’s has chosen to publicly E
EO-1 Component 1 Data 2022
Global Pay Gap Global, in aggregate 146,928 $0.9996 --
Analysis share its Consolidated EEO-1 Component 1 Data.
Global Staff2 7,671 $0.9943 -- Though the EEO-1 Component 1 is designed to EEO-1 Component 1 Data 2021
facilitate uniform reporting for U.S. employers
Global Company- 139,257 $0.99993 --
regardless of differences among their size, EEO-1 Component 1 Data 2020
owned and operated
restaurant employees complexity or nature of business, this uniform
approach means that the categories prescribed EEO-1 Component 1 Data 2019
U.S. Pay Gap U.S., in aggregate 54,430 $0.9998 3
$1.002 in the EEO-1 Component 1 reporting template
Analysis
do not fully reflect the McDonald’s business
U.S. Staff2 3,607 $0.99683 $0.99763
model. For example, the job categories on the
U.S. Company- 50,823 $1.0013 $1.0025 Consolidated EEO-1 Component 1 can be wide
owned and operated ranging and do not necessarily reflect how
restaurant McDonald’s thinks about job categories.
employees
1
ay gap refers to the amount earned on the dollar by women or Underrepresented Groups compared to men or non-minority peers for similar work.
P
2
Staff refers to our Corporate Staff.
3
Not statistically significant.
McDonald’s Sustainability McDonald’s has chosen to report through the corresponding web page within Our Purpose
voluntary SASB framework for the fifth time for & Impact Report, which contains our reporting
Accounting Standards Board
our 2023 reporting period. progress on these topics and relevant goal
(SASB) Index 2023 and performance data from 2023 in greater detail.
In certain instances, a specific SASB topic may
The IFRS Foundation is an independent,
be discussed in our reporting even though We are committed to continuous improvement
standards-setting organization that looks
McDonald’s does not currently report progress and are working to improve our data collection and
to improve efficiency and consistency in
on the corresponding SASB metrics in their coordination across the McDonald’s System.
environmental, social and governance (ESG)
exact form. In these instances, we provide
reporting of material issues for each sector and This Index covers our 2023 progress, unless noted
brand-relevant data on the topic and link to the
has been developed in conjunction with investors. otherwise.
Topic Accounting Metric Category Unit of Measure Code Response and Source(s)
Energy (1) Total energy consumed, Quantitative Gigajoules (GJ), FB-RN-130a.1 Response
Management (2) p ercentage grid electricity and Percentage (%) In 2021, we committed to adapting the Company’s climate target to help keep global temperature rises below 1.5°C and reach net zero emissions by 2050.
(3) p ercentage renewables
We have worked to evolve McDonald’s 2030 targets in alignment with the Science Based Targets initiative (SBTi)-approved net zero target. This process included updating the restaurants and offices
target, as well as the supply chain target, based on the latest science and guidance from external experts.
Energy Consumption for Company-Owned Restaurants and Offices
(1) Total energy consumed: 5,191,153 GJ (2022)
Commentary
Greenhouse Gas (GHG) Emissions (in Metric Tons)
Gross Scope 1 Emissions: 100,264 (2023)
Gross Scope 2 Emissions: 224,964 (2023) market-based
Gross Scope 3 Emissions: 59,929,320 (2023)
As of the end of 2023, restaurant energy use represented 78% of SBTi boundary restaurant and offices emissions footprint, and as such, is a key focus area for accelerating progress against our 2030 targets.
Since 2019, McDonald’s has signed multiple renewable energy projects through Virtual Power Purchase Agreements (VPPAs) and continues to be among other leading corporate renewable energy buyers in adding
new, large-scale renewable energy to the U.S. grid. Our renewable energy projects cover both solar and wind technologies, and are planned to be located in Texas, Illinois, Oklahoma and Louisiana.
Related Goals
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 Forests, Land and Agriculture (FLAG) GHG emissions by 16% and to maintain no deforestation across its primary deforestation-linked commodities.
Our global science-based target, which we revised in 2023, has been validated by the SBTi and covers all three emission scopes in line with a 1.5˚C warming scenario.
Please find additional information on our Climate Action web page and in our 2023 CDP Climate Change response.
Water (1) Total water withdrawn, Quantitative Thousand cubic meters (m³), FB-RN-140a.1 Response
Management (2) total water consumed, percentage of Percentage (%) Total water withdrawn is an estimated 7,564 thousand m³ (2023).
each in regions with High or Extremely High
Baseline Water Stress Commentary
Water withdrawn was estimated based on 616 U.S. locations that provided withdrawal data and extrapolated to the 2,142 Company-owned and operated restaurants worldwide. We continue to refine our
calculation methodology, which may create potential inconsistencies with previously reported information.
Additional Resources
Please find additional information on our Nature, Forests & Water web page and in our 2023 CDP Water response.
Food & (1) Total amount of waste, Quantitative Metric tons (t), FB-RN-150a.1 Commentary
Packaging Waste (2) percentage food waste and Percentage (%) By the end of 2023, we were approximately 86.7% of the way toward our goal of sourcing 100% of our primary guest packaging from renewable, recycled or certified materials.1, 2
Management (3) percentage diverted
From 2018–2023, we reduced virgin fossil fuel-based plastic in Happy Meal toys by 63.7%.3
In 2023, more than 88.3% of restaurants in markets with advanced infrastructure4 offered guests the opportunity to recycle and/or compost packaging items.
Related Goals
By the end of 2025, our goal is to implement global and local solutions across our business to expand the reduction, reuse or recycling of guest packaging, and create demand for recycled materials.
Learn more about our approach to food and packaging waste management on our Packaging, Toys & Waste web page.
(1) Total weight of packaging, Quantitative Metric tons (t), FB-RN-150a.2 Response
(2) percentage made from recycled and/or Percentage (%) (1) Total weight of guest packaging: 1,080,710 metric tons of guest packaging and toys sourced for McDonald’s restaurants.
renewable materials and (2) Percent made from recycled and/or renewable materials: 86.7% of all of our primary guest packaging items are sourced from renewable, recycled or certified sources.1,2 97.9% of our primary fiber-based
(3) percentage that is recyclable, reusable guest packaging globally was sourced from recycled or certified sources.
and/or compostable
Commentary
As of the end of 2023, a 63.7% reduction in virgin fossil fuel-based plastic in Happy Meal toys globally versus 2018, an improvement from the 47.8% achieved in 2022.
Related Goals
We aim to source 100% of our primary guest packaging1 from renewable, recycled or certified materials by the end of 2025.
Ensure all primary guest packaging is free from added fluorinated compounds by the end of 2025.5
We aim to implement global and local solutions across our business to advance the reduction, reuse or recycling of guest packaging, and help create demand for recycled materials by the end of 2025.
Learn more about our approach to packaging sustainability on our Packaging, Toys & Waste web page.
Food Safety (1) Percentage of restaurants inspected by a Quantitative Percentage (%) FB-RN-250a.1 Commentary
food safety oversight body and McDonald’s has developed and implemented science- and risk-based food safety and quality standards through collaboration with internal and external experts. These standards include the McDonald’s
(2) percentage receiving critical violations Global Good Agricultural Practices (GAP), Supplier Quality Management System (SQMS) and the Distributor Quality Management Process (DQMP). Our McDonald’s Global Food Safety Advisory Council includes
food safety, public health and medical professionals and leaders from North America, Europe and Asia.
(1) Number of recalls issued and Quantitative Number, FB-RN-250a.2 This Council meets with our Chief Supply Chain Officer and Global Food Safety team members annually to discuss progress and to provide recommendations to further advance our food safety practices
(2) total amount of food product recalled Metric tons (t) and standards.
Restaurant food safety and quality management procedures are integrated into the McDonald’s Operations and Training Program, which is based on our Hazard Analysis and Critical Control Point
(1) Number of confirmed foodborne illness Quantitative Number, FB-RN-250a.3 principles and are followed in every restaurant.
outbreaks and Percentage (%)
(2) percentage resulting in U.S. Centers In 2023, we added global key performance indicators (KPIs) on required audit completeness and food safety risk mitigation plans and launched an initiative to collect food-related product withdrawal
for Disease Control and Prevention (CDC) data globally.
investigation
Third-party audits verify that these standards are implemented. In 2023, more than 60,000 restaurant food safety audits (announced and unannounced) were performed. To ensure audits are robust, we
host calibration sessions with our approved third-party auditing firms.
Learn more about our approach to food safety on our Food Safety web page.
Nutritional (1) Percentage of meal options consistent Quantitative Percentage (%), FB-RN-260a.1 Additional Resources
Content with national dietary guidelines and Reporting currency Learn more about our approach to nutritional content on our Nutrition & Marketing Practices web page.
(2) revenue from these options
(1) Percentage of children’s meal options Quantitative Percentage (%), FB-RN-260a.2 Commentary
consistent with national dietary guidelines Reporting currency In 2023, 61% of Happy Meal Bundle Offerings met our Global Happy Meal Nutrition Criteria for balanced meals. These criteria mean that meals must have less than or equal to 600 calories, 10% of calories
for children and from saturated fat, 650 mg of sodium and 10% of calories from added sugar.
(2) revenue from these options
100% of Happy Meal nutrition information was available on all participating market websites and mobile apps as of Q1 2024.
The Global Happy Meal Goals apply to 20 markets globally, with measurement and reporting of progress among our 20 major markets in the U.S., Canada, Brazil, Argentina, Mexico, the U.K., France,
Germany, Austria, Spain, the Netherlands, Italy, Poland, Sweden, Switzerland, Hong Kong, China, Japan, Taiwan and Australia.
Number of advertising impressions made on Quantitative Number, FB-RN-260a.3 Commentary

children, percentage promoting products that Percentage (%) 20 out of 20 in-scope markets met our goal of having all Happy Meal Bundles advertised to children meet McDonald’s Global Happy Meal Nutrition Criteria. 99% of Happy Meal Bundles shown in
meet national dietary guidelines for children advertisements on third-party media met our Global Nutrition Criteria in 2023. We featured water, milk or juice as the Happy Meal beverage, and fruit, vegetable or dairy items as one of the Happy Meal sides
in 100% of the ads the Company directed to children. The Global Happy Meal Goals apply to all markets globally, with measurement and reporting of progress among our 20 major markets in the U.S., Canada,
Brazil, Argentina, Mexico, the U.K., France, Germany, Austria, Spain, the Netherlands, Italy, Poland, Sweden, Switzerland, Hong Kong, China, Japan, Taiwan and Australia.
Please find additional information on nutritional content on our Nutrition & Marketing Practices web page.
Labor Practices (1) Voluntary and Quantitative Rate FB-RN-310a.1 Commentary

(2) involuntary turnover rate for restaurant In order to attract and retain talent at all levels of the business, we provide competitive compensation commensurate with a Company employee’s position. We evaluate competitive wage data and
employees market trends to determine appropriate wage ranges, and ensure compliance with all applicable wage and hour laws.
(1) Average hourly wage, by region and Quantitative Reporting currency, FB-RN-310a.2 Well-Being – In 2022, McDonald's added a Global Well-Being Committee to further evolve and focus on the well-being of employees at McDonald's.
(2) percentage of restaurant employees Percentage (%)
We introduced our Global Pay Principles to our owned markets in 2019, to ensure that good pay practices are understood and consistently implemented for all Company employees.
earning minimum wage, by region
• Competitive – Pay opportunities are aligned with the external value of a job to attract, engage and motivate talent. The competitiveness of our pay rates is reviewed regularly relative to peer companies that
Total amount of monetary losses as a Quantitative Reporting currency FB-RN-310a.3 reflect our size, scale, performance and talent needs.
result of legal proceedings associated with
(1) labor law violations and • Non-discriminatory – Company employees are compensated at a level commensurate with their role, responsibility, impact, location, experience, knowledge, skills and performance, irrespective of
(2) employment discrimination gender, race, ethnicity or any other similar protected personal characteristics. See also our Diversity, Equity & Inclusion web page.
• Performance-based – Pay is focused on motivating high performance, recognizing achievement and reinforcing behaviors that align with our culture.
• Understandable – Pay programs are communicated regularly and transparently. We strive for simplicity and focus on the design of our programs to ensure Company employees understand what
determines their pay.
• Compliant – We comply with all applicable legal and regulatory requirements and standards.
During 2023, we designed and proposed a third-party wage advisory service to be piloted with a group of U.S.-based Franchisees beginning in early 2024. The optional wage advisory service is a Company
investment designed to provide U.S.-based Franchisees with resources and education to help them make third-party-supported wage and compensation decisions for their own businesses based on
benchmarking of locally available data.
Learn more about our approach to labor practices on our Talent & Benefits, Safe & Respectful Workplaces and Diversity, Equity & Inclusion web pages.
Supply Chain Percentage of food purchased that Quantitative Percentage (%) by cost FB-RN-430a.1 Response
Management & (1) meets environmental and social sourcing We substantially achieved all of our 2020 Responsible Sourcing Goals across our six priority commodities – beef, fish, palm oil, fiber, soy and coffee – and we continue to work with our suppliers on what is
Food Sourcing standards and outlined in those commitments and evaluate the continued progress. Below is our 2023 responsible sourcing performance across priority commodities:
(2) is certified to third-party environmental
and/or social standards • 98.8% of beef sourced for McDonald’s restaurants supported deforestation-free supply chains as of 2023.6
• 93.8% of the fish sourced for McDonald’s Filet-O-Fish sandwich was from sustainably managed wild-caught fisheries, which is assessed and verified annually against the McDonald’s Sustainability
Fisheries Standard by the Sustainable Fisheries Partnership.7
• 100% of the palm oil used in McDonald’s restaurants and as an ingredient in McDonald’s products supported the production of sustainable palm oil in 2023.8
• 100% of soy sourced in 2023 for the feed of chicken used in McDonald’s products supported deforestation-free supply chains globally.9
• 99.9% of our ground and whole bean coffee was sustainably sourced in 2023.10
• 97.9% of our primary fiber-based guest packaging globally was sourced from recycled or certified sources.11
Please see our Responsible Sourcing and Nature, Forests & Water web pages to learn more about our approach and to see full performance data and relevant definitions, scope and exclusions.
Percentage of Quantitative Percentage (%) by number, FB-RN-430a.2 Response

(1) eggs that originated from a cage-free Percentage (%) by weight (1) As of the end of 2023, McDonald’s USA has achieved its commitment to sourcing 100% cage-free eggs by 2025 – two years ahead of schedule.
environment and (2) As of the end of 2023, more than 96% of pork purchased in the U.S. comes from suppliers that have phased out the use of gestation stalls for housing confirmed pregnant sows.
(2) pork that was produced without the use of
gestation crates Commentary
We believe we have a responsibility to improve the health and welfare of animals in our supply chain and work with our global network of suppliers to encourage industry and cross-sector collaboration.
This is why we have animal health and welfare policies or commitments in place across our chicken, eggs, pork, beef and dairy supply chains.
We also believe that reducing any overdependence on antibiotics within our supply chain complements our decades-long commitment to managing and improving the health and welfare of animals. We
are committed to a responsible antibiotic use approach – refining antibiotic selection and administration, reducing non-therapeutic antibiotic use and, when possible, replacing antibiotics with long-term
solutions to prevent diseases and protect animal health and welfare.
Related Goals
In the U.S., we’re working with pork suppliers to phase out the use of gestation stalls for housing pregnant sows by the end of 2024.
Please see our Animal Health & Welfare and Responsible Antibiotic Use web pages for more information.
Discussion of strategy to manage Discussion N/A FB-RN-430a.3 In 2017, McDonald’s announced a global commitment to source chickens raised with improved welfare outcomes. To achieve this, we outlined eight Broiler Welfare Commitments in key markets.12
environmental and social risks within the and Analysis
supply chain, including animal welfare By the end of 2027, we aim to 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 the U.S., Europe, Brazil, Canada, Japan, South Korea, Australia and China. 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.
In 2018, we implemented McDonald’s Antibiotic Policy for our Beef Supply Chain. It is informed by our VAS and follows global guidance from expert bodies like the WHO and the World Organisation for
Animal Health (WOAH). This policy identifies McDonald’s expectations and anticipated implementation plans with respect to antibiotic use in our beef supply chain while complying with local laws and
regulations. It focuses on the following beef sourcing countries: Australia, Brazil, Canada, France, Germany, Ireland, New Zealand, Poland, the U.K. and the U.S.
We aim to deliver responsible sourcing programs that drive lasting, meaningful outcomes on critical environmental, social and corporate issues. To enable these outcomes, we focus on the following
Priority Impact Areas: promoting the health and welfare of animals; respecting human rights; addressing climate change; reducing food and packaging waste; and protecting nature, forests and
water resources.
McDonald’s works with its suppliers to embed sustainability commitment into global sourcing decisions for food and packaging through Global Sustainable Sourcing Specifications and direct
collaboration on sustainable initiatives.
Learn more about our efforts in these areas throughout the Food Quality & Sourcing and Our Planet web pages, as well as our 2023 CDP Climate Change and 2023 CDP Forests responses.
SASB Activity Metrics

Activity Metric Category Unit of Measure Code Response and Source(s)
Number of Quantitative Number FB-RN-000.A (1) 2,142 Company-owned restaurants.

(1) Company-owned and (2) 39,680 franchised restaurants.
(2) franchise restaurants
These figures are as of year-end 2023.
Please find additional information in McDonald’s Annual Report.
Number of employees at Quantitative Number FB-RN-000.B Company employees, which include those in the Company’s corporate and other offices as well as in Company-owned and operated restaurants, totaled over 150,000 worldwide as of year-end 2023.
(1) Company-owned and
(2) franchise locations In addition to Company employees, the over 2 million individuals who work in McDonald’s franchised restaurants around the world are critical to the Company’s success, enabling it to drive long-term
value creation and further its purpose and mission.14
Please find additional information in McDonald’s Annual Report.
SASB Index Notes 3 Toys. Scope: Inclusive of all toys. Fiber-based toys or fiber components in the 5 Fluorinated Compounds. Scope: Inclusive of all markets except for Israel, 7 Fish: Fish refers to any type of fish species used as an ingredient in a
toys: 100% certified fiber required. All other materials: McDonald’s ambition Latin America and Turkey, and Happy Meal book and toy packaging. Renewable McDonald’s product and listed on the product’s ingredient statement. Wild-
1 Packaging. Scope: Inclusive of all markets for our fiber-based packaging is to reduce the use of virgin fossil fuel-based plastics, offer more sustainable sources refers to material that is composed of biomass from a living source Caught Fish refers to fish that come from seas, rivers and other natural
and Happy Meal book and toy packaging. For our plastic-based packaging, toys by the end of 2025 and not manufacture electronics and batteries in and that can be continually replenished. Renewable applies to plastics only, not bodies of water. Filet-O-Fish sandwich refers to the McDonald’s menu item
all markets are included except for Israel, Latin America and Turkey. Happy Meal toys globally. For bio- and plant-based plastics to be considered fiber. Source: ISO 14021:2016 for plastic, ASTM 6866 or ISO 16620-2. Fiber-based containing wild-caught fish. Verified sustainable sources refers to wild-
Renewable sources refers to material that is composed of biomass from a sustainable for McDonald’s, a minimum of 60% of plastic weight is required to packaging made from 100% recycled sources must be third-party verified, caught fish, sourced by suppliers to the McDonald’s System, from fisheries that
living source and that can be continually replenished. Renewable applies to come from recycled or renewable content or a combination of recycled and unless certified under a Chain of Custody Forest Management standard. are annually verified as compliant with the McDonald’s Sustainable Fisheries
plastics only, not fiber. Source: ISO 14021:2016 for plastic, ASTM 6866 or ISO renewable content, though in many practical applications we anticipate that McDonald’s requires all wood fiber sourced from Argentina, Cambodia, China, Standard by the Sustainable Fisheries Partnership. MSC Certification is
16620-2. Fiber-based packaging made from 100% recycled sources must percentage will be much higher. The remaining 40% may be conventional Indonesia, Laos, Malaysia, Russia and Vietnam to be Forest Stewardship optional to McDonald’s markets. Fisheries may also be independently certified
be third-party verified, unless certified under a Chain of Custody Forest fossil fuel-based material. These thresholds were developed in conjunction Council® (FSC®) certified or FSC® controlled wood sources with full chain of as meeting the Marine Stewardship Council (MSC) Principles and Criteria for
Management standard. McDonald’s requires all wood fiber sourced from with input from NGOs, external manufacturing partners and scientists, and custody certification. Perfluorinated compounds are known to be historically Sustainable Fishing where a certificate of conformity to an MSC Standard
Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and Vietnam based on an assessment of sustainable toy and packaging industry leaders persistent in the environment. McDonald’s commits to not intentionally adding has been granted. Source: www.msc.org. McDonald’s may display the MSC
to be Forest Stewardship Council® (FSC®) certified or FSC® controlled wood so that our targets reflected current sustainable engineering capabilities to fluorinated compounds through our processes, but fluorinated compounds certification logo in some of its markets where fisheries and restaurants are
sources with full chain of custody certification. Perfluorinated compounds are maintain safety and functionality. Our efforts will result in an approximate present in the local environment make it difficult to remove all traces of certified against the MSC Chain of Custody traceability standard. Scope:
known to be historically persistent in the environment. McDonald’s commits 90% reduction in virgin fossil fuel-based plastic use against a 2018 baseline. fluorine from packaging. Please refer to our Nature, Forests & Water web page Includes all wild-caught fish sourced for Filet-O-Fish sandwich portions served
to not intentionally adding fluorinated compounds through our processes, Fiber-based packaging made from 100% recycled sources must be third- for additional definitions. Exclusions: Primary fiber-based packaging in food in McDonald’s restaurants. Filet-O-Fish sandwich represents over 97% of
but fluorinated compounds present in the local environment make it difficult party verified, unless certified under a Chain of Custody Forest Management packaged off-site of McDonald’s restaurants, tray liners and limited locally the total fish volumes used in the McDonald’s System (by weight). Includes
to remove all traces of fluorine from packaging. Please refer to our Nature, standard. Source: ISO 14021:2016. McDonald’s requires all wood fiber sourced sourced items. all suppliers of wild-caught fish for Filet-O-Fish sandwich to the McDonald’s
Forests & Water web page for additional definitions. Exclusions: Primary fiber- from Argentina, Cambodia, China, Indonesia, Laos, Malaysia, Russia and System and all McDonald’s restaurants owned and operated by the Company
based packaging in food packaged off-site of McDonald’s restaurants, tray Vietnam to be Forest Stewardship Council® (FSC®) certified or FSC® controlled 6 Beef. Scope: Includes all beef raw material used in beef patties sourced for and its Franchisees that sell fish. Exclusions: Products that are not Filet-O-Fish
liners and limited locally sourced items. wood sources with full chain of custody certification. The thresholds described McDonald’s products from beef patty manufacturers that supply McDonald’s sandwich containing wild-caught or farmed fish. We estimate that these
above do not include the presence of adhesives, glues, inks, paints and restaurants in the U.S., Australia, Brazil, Germany, Ireland, France, New products represent less than 2% of the total fish sourced by McDonald’s by
2 Non-structural components of packaging vary based on the packaging but Zealand, Canada, the U.K. or Poland. Includes all McDonald’s restaurants
coatings. weight and may include products such as tuna, prawns, shrimp, salmon and
may include adhesives, inks, overprint varnishes, retention agents or binders, owned and operated by the Company and its Franchisees in these countries, calamari; other breaded products; and locally sourced products. The Company
processing aids, impact modifiers, minerals used non-structurally and 4 Markets with advanced infrastructure: Mature waste and recycling which collectively represent over 80% of our global beef volumes, as of the has set an expectation that these products are sustainably sourced, although
nucleating and clarifying agents. We continue to monitor industry standards infrastructure at a national level that has (1) recycling infrastructure network end of 2021. The Global Roundtable for Sustainable Beef (GRSB) aims to they are not included in this global performance measure given the local, and
on these components and opportunities to work toward making any part of our across the entire market, (2) multiple materials being recycled within this define the principles of and criteria for beef sustainability globally. The five often promotional, nature of these items. Moving forward, we have plans in
packaging, including non-structural components, more sustainable. national infrastructure network, (3) existing legislation on recycling and (4) high core principles are focused on the following: managing natural resources place to reduce sourcing from non-compliant fisheries and will increase our
customer awareness of waste and recycling. At the end of 2023, that included responsibly; respecting people and communities; caring for the welfare of supply of fish sourced from compliant fisheries as new facility options become
21 markets where McDonald’s operates. animals; ensuring the safety and quality of beef; and driving efficiency and available.
innovation to reduce waste and improve economic viability. These principles
allow for national and regional interpretation, given the significant variation in
production systems, legal frameworks, sociopolitical factors and climates that
exist across the globe. Exclusions: Beef used as secondary ingredients.
8 Palm oil. Scope: Includes all palm oil (including crude palm oil, palm kernel 10 Coffee. Scope: Includes all ground and whole bean coffee, including 12 Broiler welfare: These commitments apply to chickens raised for sale at
oil, derivatives and fractions) sourced for McDonald’s restaurants for use decaffeinated coffee, used in espresso-based drinks and coffee brewed at McDonald’s restaurants in Australia, Canada, France, Germany, Italy, Ireland,
as restaurant cooking oil and all palm oil sourced by McDonald’s suppliers McDonald’s restaurants, and all ground and whole bean coffee in McDonald’s- the Netherlands, Poland, South Korea, Spain, Switzerland, the U.K. and the U.S.
and used directly as an ingredient in a McDonald’s product and listed on the branded retail products. Includes all suppliers of coffee to the McDonald’s Russia has been removed from the scope of this goal based on our 2022 exit Find Out More
product’s ingredient statement. Includes all suppliers of products containing System. Market scope includes all McDonald’s restaurants owned and from this market.
palm oil in the McDonald’s System and all McDonald’s restaurants owned and operated by the Company and its Franchisees that sell coffee, and retail
operated by the Company and its Franchisees that use palm oil. All countries outlets selling McDonald’s-branded coffee products. Countries with regions 13 Franchisees are independent employers and select which of their employees For more information on terms and definitions,
are currently identified as high-deforestation priority regions for palm oil and currently identified as high-deforestation priority regions for coffee include attend Hamburger University. governance, performance data and more,
all volumes are required to be covered by Roundtable on Sustainable Palm Honduras, Indonesia and Vietnam. McDonald’s requires all coffee sourced from
Oil (RSPO) certification or credits. All RSPO supply chain models applicable these regions to be Rainforest Alliance Certified. Exclusions: Coffee extracts
please visit the Our Purpose & Impact section
to RSPO are applicable to McDonald’s ‒ RSPO Identity Preserved (IP), RSPO and ingredients used in products such as frappés and coffee in baked goods; of our website.
Segregated (SG), RSPO Mass Balance (MB) and Book and Claim (BC) ‒ although coffee in cold brew drinks if they are brewed off-site; coffee extract in ready-to-
McDonald’s is committed to increasing traceability by specifying physical drink retail products; and other locally sourced products containing coffee.
certification for the palm oil used in the McDonald’s System in the greatest This Index covers our 2023 progress, unless
volumes (IP, SG or MB). Exclusions: Palm oil, palm kernel oil or their derivative 11 Fiber. Scope: Primary fiber-based packaging refers to products that are used
used as secondary ingredients in McDonald’s products. This is when palm oil is to package guest food on premises at McDonald’s restaurants. This type of noted otherwise.
used as an ingredient within an ingredient, for example, an emulsifier. packaging includes containers, cups, wraps, bags for food, beverages, napkins,
folding cartons, clamshells, food service bags, napkins, salad bowls, Happy
9 Soy (for chicken feed). Scope: Includes all soybean volume used in the feed Meal cartons, drink carriers and cup carriers. Includes all suppliers of primary-
of chicken sourced for McDonald’s products by all chicken suppliers to the based packaging to the McDonald’s System and all McDonald’s restaurants
McDonald’s System and all McDonald’s restaurants owned and operated by owned and operated by the Company and its Franchisees. In 2021, the primary
the Company and its Franchisees that sell chicken. Europe refers to Austria, fiber-based packaging scope was expanded to include plastic alternatives
Azerbaijan, Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, such as wood stirrers and cutlery, and paper straws and lids. This broadened
Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Latvia, scope has resulted in a slight decrease in percent compliance. All volumes of
Lithuania, Luxembourg, Malta, Moldova, the Netherlands, Norway, Poland, contingency items sourced from suppliers compliant with our standards but
Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, not integrated into our data reporting system were counted as non-compliant.
the U.K. and Ukraine. Countries with regions currently identified as high- Countries with regions currently identified as high-deforestation priority
deforestation priority regions for soy include Argentina (Chaco biome), regions for fiber include Argentina, Cambodia, China, Indonesia, Laos, Malaysia,
Brazil (Amazon and Cerrado biomes) and Paraguay (Chaco biome). Given the Russia and Vietnam. McDonald’s requires all wood fiber sourced from these
complexity of soy supply chains, we consider that, unless demonstrated, all of regions to be Forest Stewardship Council® (FSC®) certified or FSC® controlled
McDonald’s sources of soy for chicken feed fall into high-deforestation priority wood sources with full chain of custody certification. Exclusions: Primary
regions, with the exception of chicken sourced in North America, where soy fiber-based packaging in food packaged off-site McDonald’s restaurants; tray
used in chicken feed is locally produced and considered low risk. Exclusions: liners, straws and limited locally sourced items.
Soy used as an ingredient in McDonald’s products sold in restaurants, for
example, soy oil.

McDonalds PurposeImpact ProgressReport 2023 2024

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McDonalds PurposeImpact ProgressReport 2023 2024

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2023–2024

Our Purpose & Impact Report

Our purpose is to feed

Introduction Our Planet Food Quality Jobs, Inclusion Community

A Message From Our CEO

Alongside our world-class Franchisees, we have McDonald’s has a legacy of

The McDonald’s System

Tackling deforestation in Nutrition and Choice

Our Impact Strategy

On Our Website Forward-Looking Statements

Progress Against Our Goals at a Glance

TARGET YEAR GOAL STATUS PROGRESS

All target years are as of year-end, unless otherwise stated.

ON TRACK ACHIEVED CONTINUED ACHIEVEMENT ACHIEVED EARLY

TARGET YEAR GOAL STATUS PROGRESS

All target years are as of year-end, unless otherwise stated.

ON TRACK ACHIEVED CONTINUED ACHIEVEMENT ACHIEVED EARLY

TARGET YEAR GOAL STATUS PROGRESS

All target years are as of year-end, unless otherwise stated.

We’re acting now to deliver on our

We are taking action on We believe that reducing emissions

By the end of 2030, from a 2018 base year,

deforestation-linked commodities. Scope 3 emissions 62,354,135* 59,929,320

Achieving these ambitions will require continued

CASE STUDY Renewable Energy Procurement Supply Chain Engagement

We also continue to identify opportunities to Next Steps

 or more information on how we engage in

As well as encouraging target setting, we’re

 ead more about our approach to

Packaging, Toys & Waste

We continue to focus on reducing virgin fossil Reducing Plastics in CASE STUDY

Nature, Forests & Water

Palm oil 100%: The Company

CASE STUDY Our Progress on Protecting Evaluating Land Use Change

Food Quality & Sourcing

Improving animal health and welfare in

199 farmers globally 60,000+ food safety audits

Nutrition & Marketing Practices

99.9% of our ground and 93.8% of the fish

Regenerative Agriculture Through RSVP, ranchers have access to a

Cattle are a vital part of the farm ecosystem, CASE STUDIES

Animal Health & Welfare and

Our journey to move to sourcing GOAL GOAL

We are actively advancing data collection while

Our Eight Commitments to Broiler Welfare

2022–2023: Suppliers tested lighting and enrichments in commercial settings.

Empowering the communities we serve

We strive to weave human rights McDonald’s conducted due diligence (including

4 Diversity, Equity and Inclusion

5 Education and Employment Creation

8 Freedom of Association and

11 Occupational Health & Safety

Safe and Respectful Workplaces Our Performance

Diversity, Equity & Inclusion

33% in the U.S. are from

Diversity, Equity & Inclusion web page.

Representation of Women Women’s leadership representation at Corporate Staff: Global

Company-Owned and Operated Company-Owned and Operated

Shift Manager and Crew Shift Manager and Crew

All Restaurant Staff All Restaurant Staff

or more information on how we engage in

ead more about our approach to

Find out more on page 69 or on our dedicated