Two years after investors representing more than $11 trillion in assets called on six of the largest fast-food companies to mitigate climate and water risks in their meat and dairy supply chains, five of those fast food chains (McDonald’s, Yum! Brands, Chipotle, Domino’s and Wendy’s) have either set, or stated they will set, science-based emission reduction targets (SBTs). Last year, only McDonald’s had set an SBT, and Yum! Brands had announced its intention to set an SBT. This rapid uptake of ambitious pledges in just one year shows the fast food sector is accelerating action on climate amidst rising pressure from investors. Despite this progress, further progress is needed on analyzing and mitigating water risks and performing climate scenario analyses as recommended by the Task Force on Climate-Related Financial Disclosures (TCFD).
Growing global demand for meat and dairy products continues to place unsustainable burdens on our planet’s limited resources. Animal agriculture is linked to nearly 15% of global greenhouse gas (GHG) emissions and is a significant driver of water scarcity, water pollution and land-use change. As one of the largest buyers and sellers of meat and dairy products, the $570 billion global fast-food sector is increasingly vulnerable to the impacts of a warming planet on these animal protein supply chains. Multiple analyses from Ceres, FAIRR, and others have found that many prominent protein suppliers are not adequately managing these risks.
In response, investors representing more than $11 trillion in assets have called on six of the largest fast-food companies to analyze and mitigate these risks.
To ensure resilient commodity supply chains, investors have requested that companies develop strong supplier policies on climate and water risks, set science-based targets to curb GHG emissions and improve water use, and perform climate scenario analyses as recommended by the Task Force on Climate-Related Financial Disclosures (TCFD).
Download the report to see how the six companies have progressed against investors’ requests.