• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    SEC Form PX14A6G filed by McDonald's Corporation

    4/11/25 10:05:45 AM ET
    $MCD
    Restaurants
    Consumer Discretionary
    Get the next $MCD alert in real time by email
    PX14A6G 1 j410250px14a6g.htm

     

    NAME OF REGISTRANT: McDonald’s Corporation

    NAME OF PERSON RELYING ON EXEMPTION: Green Century Equity Fund

    ADDRESS OF PERSON RELYING ON EXEMPTION: 114 State Street, Suite 200, Boston, MA 02109

     

    Written materials are submitted pursuant to Rule 14a-6(g)(1) promulgated under the Securities Exchange Act of 1934. Submission is not required of this filer under the terms of the Rule but is made voluntarily in the interest of public disclosure and consideration of these important issues.

     

    Shareholder Proposal No. 5 on McDonald's 2025 Proxy Statement:

    Disclosure on Climate Transition Plans

    The McDonald's Corporation Symbol: MCD

    Filed by: Green Century Equity Fund

     

    Green Century Capital Management, Inc., is the investment advisor to the Green Century Equity Fund

    and seeks your support for the climate-related proposal filed at McDonald's Corporation (hereby referred to as “McDonald's” or “the Company”) in its 2025 proxy statement asking the Company to publish an assessment of whether it is on track to achieve its emissions reduction targets given its current climate transition policies and plans. The Proponent believes that disclosing whether and how the Company will achieve its existing climate goals, which would require reducing beef-related emissions, will more effectively mitigate commodity price risks, competitive risks, reputational risks, and legal risks, and better meet investor expectations.

     

    Resolved: Shareholders request that McDonald’s, at reasonable expense and omitting proprietary information, disclose an assessment of whether its current climate transition plans and related resource commitments can reasonably achieve its 2030 and 2050 emissions reduction targets, or whether additional plans or commitments are necessary.

     

    Supporting Statement: The essential purpose of this proposal is to elicit quantitative, forward-looking disclosures demonstrating whether McDonald’s policies and actions can be reasonably expected to achieve its emissions reduction targets. In developing these disclosures, proponents recommend, at management discretion:

    ·Quantifying the emissions reduction impact of each of McDonald’s current climate strategies;
    ·Assessing whether McDonald’s livestock dependency makes its climate targets unachievable;

    ·Integrating quantitative, timebound protein diversification targets.

     

    RATIONALE FOR A “YES” VOTE

     

    1.Commodity Price Risk – A significant portion of McDonald's emissions arise from beef. Without assurance that the Company is on track to meet its targets by reducing beef emissions, McDonald's may be exposed to commodity price risk.
    2.Competitive risk – Without an assessment of McDonald's progress toward reaching its climate goals, its lack of plans to diversify its protein options in alignment with its peers exposes the Company to competitive risks.
    3.Reputational risk – McDonald’s current disclosures fail to provide credible support for its climate commitments. This exposes the Company to greenwashing claims and reputational damage.
    4.Legal risk – Without forward-looking disclosures describing how McDonald's will meet its existing climate commitments, the Company remains exposed to lawsuits alleging greenwashing.

     

       
     

     

    5.Failure to Meet Investor Expectations – McDonald’s climate-related disclosures fail to inform investors how it will align its business with existing climate commitments and mitigate climate-related risks.

     

    This is not a solicitation of authority to vote your proxy. Please DO NOT send us your proxy card; Green Century Equity Fund is not able to vote your proxies, nor does this communication contemplate such an event. Green Century Equity Fund urges shareholders to vote for Proposal No. 5 following the instruction provided on the management’s proxy mailing.

     

    BACKGROUND

     

    In 2024, the Earth’s average temperature exceeded 1.5 °C above pre-industrial levels for the first time.1 Each 1°C temperature rise will decrease global GDP by 12%.2

     

    The global food system is responsible for one-third of global anthropogenic greenhouse gas emissions.3 The majority of food system emissions (71%) arise from agriculture and land-use change activities.4 By 2050, agricultural emissions are set to account for 70% of the greenhouse gas (GHG) budget associated with 2°C of warming. Agricultural emissions must decrease by 11 gigatons to avoid reaching this threshold.5

     

    In response, 20 of the world’s largest food and restaurant companies have set emissions reduction goals.6 These targets aim to decrease Scope 3 emissions from companies’ supply chains, which often account for over 90% of their total GHG footprint.7 For quick service restaurants, reducing Scope 3 emissions necessitates addressing their purchasing of beef, which emits the highest GHG emissions per kilogram of food as compared to any food commodity.8

     

    Quick service restaurants are exposed to significant climate-related risk. Climate change produces weather patterns that accelerate crop failure and reduce agricultural and livestock productivity.9 Agricultural products will face variability of supply and price volatility as climate change intensifies.10 Suppliers must either sustain increased costs themselves or pass them on to quick-service restaurants.11

     

     

    _____________________________

    1 https://www.rmets.org/metmatters/world-exceeds-15degc-threshold-entire-year-first-time

    2 https://www.weforum.org/stories/2024/06/nature-climate-news-global-warming-hurricanes/

    3 https://www.nature.com/articles/s43016-021-00225-9; https://www.fao.org/statistics/highlights-archive/highlights-detail/greenhouse-gas-emissions-from-agrifood-systems.-global--regional-and-country-trends--2000-2022/en

    4 https://www.nature.com/articles/s43016-021-00225-9

    5 https://wriorg.s3.amazonaws.com/s3fs-public/creating-sustainable-food-future_0.pdf?_ga=2.34002273.1714275990.1547553073-184368778.1538575606

    6 https://www.nytimes.com/2023/09/22/business/food-companies-emissions-climate-pledges.html

    7 https://www2.deloitte.com/uk/en/focus/climate-change/zero-in-on-scope-1-2-and-3-emissions.html;

    https://ghgprotocol.org/sites/default/files/2022-12/Scope%203%20Detailed%20FAQ.pdf, p. 2

    8 https://www.un.org/en/climatechange/science/climate-issues/food; https://www.bbc.com/future/article/20221214-what-is-the-lowest-carbon-protein

    9 https://www.ucs.org/resources/climate-change-and-agriculture; https://www.epa.gov/climateimpacts/climate-change-impacts-agriculture-and-food-supply

    10 https://think.ing.com/articles/climate-change-forces-food-agri-companies-to-adapt/; https://www.angus.org/angus-media/angus-journal/2024/10/futures-market-volatility

    11 https://www.fairr.org/news-events/insights/how-climate-change-can-take-a-bite-out-of-profits-across-the-entire-animal-protein-value-chain

     

       
     

     

    Beef emissions account for nearly one third of McDonald's total GHG footprint, and estimates place the Company’s emissions from beef at 19,130,471 metric tons.12 McDonald's has set targets to reduce absolute Scope 3 energy and industrial GHG emissions by 50.4%, reduce absolute Forest, Land and Agriculture (FLAG) GHG emissions by 16%, and to reach net-zero GHG emissions across its value chain by 2050, all of which necessitate McDonald’s significantly decreasing its emissions from beef.13

     

    Yet, McDonald’s current disclosures fail to describe progress and key actions the Company is taking to achieve these targets—including plans to work with its beef supply chain and diversify protein offerings. McDonald’s requires beef suppliers to commit to setting Science Based Targets initiative (SBTi) verified targets, yet the Company does not publish data on supplier progress toward meeting this requirement. Nor does McDonald's describe how existing or future strategies to engage beef suppliers will result in emissions reductions. The Company also lags peers in diversifying its protein offerings. Because raising and eating fewer animals, especially cattle, would most effectively reduce livestock emissions,14 the failure to diversify its menu raises concerns about the integrity of McDonald’s climate commitments.

     

    McDonald’s does not outline how its initiatives and plans will reduce emissions from beef at the scale and pace necessary to achieve its climate targets. In the absence of a credible plan to reduce the largest source of its GHG emissions, McDonald's faces commodity price, competitive, reputational, and legal risks and fails to safeguard shareholder value.

     

    I.COMMODITY PRICE RISK

     

    McDonald’s dependence on beef creates risk related to ingredient costs.

     

    Cattle populations are negatively impacted by climate change. On January 1, 2024, the US reached the lowest number of cattle and calves since 1951.15 Climate change leads to water scarcity, soil degradation, reduced crop yields, and higher average temperatures, all of which make the beef supply chain less productive and continue to decrease cattle populations.16 As a result, the costs of producing and procuring beef are growing.17 McDonald’s acknowledges this in its assessment of its climate-related risks, reporting that raw material costs may increase due to climate change.18

     

     

    _____________________________

    12 https://www.bloomberg.com/news/articles/2021-12-01/the-carbon-footprint-of-mcdonald-s-menu-very-big; https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/McDonalds_CDP_Climate_2022.pdf

    13 https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/McDonalds_PurposeImpact_ProgressReport_2023_2024.pdf, 18

    14 https://www.vox.com/future-perfect/362224/environment-groups-meat-industry-lies-global-warming-climate-change-wwf; https://insideclimatenews.org/news/02102017/meat-eating-grass-fed-beef-climate-change-cattle/

    15 https://www.fb.org/market-intel/u-s-cattle-inventory-smallest-in-73-years

    16 https://www.publichealth.columbia.edu/news/how-climate-change-stressing-global-food-supply-public-health ; https://www.weforum.org/stories/2024/01/food-system-impact-of-climate-change/ ; https://www.weforum.org/stories/2024/01/food-system-impact-of-climate-change/#:~:text=Climate%20change%20impacts%20meat%20supply%20chains%20in%20three%20major%

    20ways,increase%20slows%20growth%20by%207%25; https://climate.nasa.gov/news/3124/global-climate-change-impact-on-crops-expected-within-10-years-nasa-study-finds/; https://pmc.ncbi.nlm.nih.gov/articles/PMC4823286/#:~:text=The%20foremost%20reaction%20of%20animals,even%20death%20in%20extreme%20cases

    17 https://www.fb.org/market-intel/cattle-market-volatility-increasing-risk-for-farmers-may-lead-to-record-beef-prices

    18 https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/McDonalds_CDP_Response_Climate_Change_2023.pdf, 11.

     

       
     

     

    To avoid incurring higher commodity costs from suppliers, McDonald’s and its peers have shifted their menus toward other proteins in the past.19 Tyson, a McDonald’s beef supplier, is expected to face a 15% increase in costs by 2030 due to climate change.20 The physical and transition impacts of climate change have been projected to cause cumulative losses of $1.3 trillion by 2030 for 40 of the world’s largest livestock companies, including Tyson and JBS.21 JBS and Tyson are estimated to account for nearly 20% of McDonald’s ingredient-related costs, and they may respond to projected losses by passing increased costs on to customers like McDonald’s. McDonald's may therefore experience financial strains if it fails to further diversify its protein options.22

     

    Without details on McDonald's initiatives to reduce its purchasing of beef or engage its beef supply chain to decrease GHG emissions, investors are unable to assess the Company’s exposure to the commodity price risk from climate change. Outlining how the Company plans to mitigate supply chain emissions in line with its climate goals would also help clarify for investors the extent to which McDonald’s is on track to achieve its targets.

     

    II.COMPETITIVE RISK

     

    McDonald's peers better demonstrate they are taking the necessary actions to mitigate climate-related risk, including by diversifying their protein options, exposing McDonald’s to competitive risks.

     

    Although McDonald’s offers multiple permanent vegetarian and vegan items in the U.K., EU, and India, it is failing to incorporate these items across the U.S., its largest market in terms of systemwide sales.23 Given the higher price and emissions of beef, failing to diversify protein offerings away from beef puts McDonald’s at a competitive disadvantage.

     

    McDonald’s peers have long been ahead in diversifying their protein offerings

    ·Competitors including White Castle,24 Taco Bell,25 Smashburger,26 Shake Shack,27 and Habit Burger and Grill,28 offer plant-based proteins and meatless menu options in the U.S.
    ·Burger King has offered an alternative protein burger since 2002 and currently offers the Impossible Whopper across U.S. locations.29

     

     

    _____________________________

    19 https://www.nrn.com/fast-casual/mcdonald-s-burger-king-push-chicken-amid-high-beef-costs; https://www.washingtonpost.com/business/2024/12/05/chicken-fast-food/

    20 https://www.fairr.org/news-events/insights/how-climate-change-can-take-a-bite-out-of-profits-across-the-entire-animal-protein-value-chain

    21 https://tysonfreshmeats.com/progressive-beef-and-wendys-advance-partnership; https://www.fairr.org/news-events/insights/how-climate-change-can-take-a-bite-out-of-profits-across-the-entire-animal-protein-value-chain; https://www.fairr.org/tools/climate-risk-tool

    22 https://www.fairr.org/news-events/insights/how-climate-change-can-take-a-bite-out-of-profits-across-the-entire-animal-protein-value-chain

    23 https://www.latimes.com/business/story/2024-10-10/beyond-meat-mcdonalds-mcnuggets-france; https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/20231202_Investor%20Update%20Fact%20Sheet.pdf, 3

    24 https://www.whitecastle.com/about-us/press-releases/impossible-slider

    25 https://www.tacobell.com/food/vegetarian

    26 https://smashburger.com/menu/smashburgers/veggie-smash

    27 https://shakeshack.com/faq?a=What-vegetarian-or-vegan-options-do-you-have---id--BjalMAUDQDiC1tE9cMJgHQ

    28 https://www.habitburger.com/menu/

    29 https://www.bk.com/menu/section-71ae3eb5-7fe2-46c4-9d26-d866c128ea5e; https://money.cnn.com/2002/03/14/news/companies/burgerking_veggie/

     

       
     

     

    ·In 2024, Panda Express announced the expansion of its alternative protein chicken across the U.S.30

     

    Consumers are increasingly aware of sustainability, including the climate-impact of their food.

     

    ●In a survey of 19,000 participants, up to 80% of respondents reported considering sustainability in their day-to-day decision making. Respondents exhibited the greatest interest in sustainability and follow-through within the food category.31
    ●According to the National Restaurant Association’s State of the Industry 2023 report, 72% of all U.S. adults say they’re more likely to visit a restaurant that uses sustainable and environmentally friendly business practices.32
    ●A Deloitte study found that sustainable brands, specifically those that make credible claims and investments in sustainability, hold a competitive advantage.33
    ●EY forecasts the alternatives market to grow at a compound annual growth rate of 3.7% between 2022 and 2027.34

     

    Beef alternatives offer significant GHG emissions reductions

     

    ·Alternative proteins generate up to 90% fewer GHG emissions than beef per quarter pound.35
    ·Producing an equivalent amount of protein from peas emits 90 times less GHG emissions than beef.36
    ·Switching from beef to chicken would eliminate 86% of emissions per kilogram of food.37

     

    By detailing McDonald's progress toward reaching its climate goals, including plans to expand its protein offerings, the Company could keep pace with its peers and better demonstrate its commitment to reducing its GHG emissions, thereby reducing competitive risk.

     

    III.REPUTATIONAL RISK

     

    As a quick service restaurant, McDonald's is highly dependent on goodwill towards its brand. If McDonald's does not show that it is on track to meet its climate commitments, growing concern about climate change has the potential to damage the Company’s reputation.

     

     

    _____________________________

    30 https://www.beyondmeat.com/en-US/whats-new/beyond-the-original-orange-chicken-expands-to-more-panda-express-locations

    31 https://www.bcg.com/publications/2023/whetting-consumers-appetite-for-sustainable-foods

    32 https://www.nrn.com/quick-service/why-restaurant-companies-have-turned-their-focus-to-carbon-emissions-reduction

    33 https://hbr.org/2023/09/research-consumers-sustainability-demands-are-rising

    34 https://www.ey.com/en_us/insights/strategy/how-alternative-proteins-are-reshaping-meat-industries#:~:text=The%20alternatives%20market%20reached%20US,and%20meat%

    20industries%20in%20particular.

    35 https://css.umich.edu/publications/research-publications/beyond-meats-beyond-burger-life-cycle-assessment-detailed

    36 https://www.bbc.com/future/article/20221214-what-is-the-lowest-carbon-protein

    37 https://earthshotprize.org/news/changing-the-plate-how-alternative-proteins-can-help-create-a-healthier-planet/; https://www.bbc.com/future/article/20221214-what-is-the-lowest-carbon-protein; https://www.un.org/en/climatechange/science/climate-issues/food; https://www.bbc.com/future/article/20221214-what-is-the-lowest-carbon-protein

     

       
     

     

    Harvard Business Review notes brand equity, intellectual capital, and goodwill accounts for 70-80% of market value, and the World Economic Forum found that over 25% of market value is directly attributable to reputation.38 An analysis of UK companies in the financial sector reported that value lost from ESG-related reputational damage was disproportionately larger than the magnitude of fines, generating cumulative losses of 5.43% in share prices.39

     

    McDonald’s has received negative press in outlets including The New York Times,40 The Guardian,41 Bloomberg,42 Vice,43 Vox,44 BBC,45 and Grist46 for its inability to align its beef business with its climate goals. A Bloomberg investigation of McDonald’s beef sustainability pilot projects and commitments led to the conclusion that “there does not seem to be any proactive involvement or serious investment by McDonald’s to support its suppliers or make significant changes in its beef supply chain.”47

     

    McDonald’s current climate disclosures fail to demonstrate the Company has the necessary policies and plans to achieve its GHG reduction targets, particularly regarding beef emissions. In the absence of detailed disclosures on how existing initiatives and plans will lead to emissions reductions in its beef supply chain, McDonald’s continues to be exposed to reputational risk.

     

    IV.LEGAL RISK

     

    Companies face additional legal risk when their sustainability commitments are not supported with credible plans to achieve them. In the absence of forward-looking disclosures that address the largest source of its greenhouse gas footprint, potential litigants may allege that McDonald's climate ambitions are misleading customers.

     

    ·In 2024, The New York Attorney General sued JBS for making allegedly unsubstantiated claims about its net-zero by 2040 commitment.48 The legal complaint argues that JBS has not demonstrated it is taking concrete steps toward its goal and is therefore misleading consumers in violation of state law.49

    ·In 2024, Environmental Working Group filed a lawsuit against Tyson for allegedly making false statements on the company’s efforts toward achieving its net-zero by 2050 goal and portraying its beef as “climate-smart”.50 The suit claims that despite Tyson’s inclusion of a plan to achieve net-zero emissions in its 2022 sustainability report, the company’s strategy does not make significant changes to its operations and alleges that it would require an “unfathomable” volume of carbon offsets to zero out its emissions, given the scale of its production.51

     

     

    _____________________________

    38 https://hbr.org/2007/02/reputation-and-its-risks; https://www.forbes.com/councils/forbesagencycouncil/2019/12/27/the-importance-of-brand-reputation-20-years-to-build-five-minutes-to-ruin/

    39 https://www.grantthornton.co.uk/insights/esg-how-a-bad-rep-can-seriously-hurt-a-firms-value/

    40 https://www.nytimes.com/2023/09/22/business/food-companies-emissions-climate-pledges.html

    41 https://www.theguardian.com/environment/2021/dec/10/mcdonalds-emissions-beef-burgers

    42 https://www.bloomberg.com/news/articles/2021-12-01/the-carbon-footprint-of-mcdonald-s-menu-very-big?embedded-checkout=true&sref=Brs3FVmA

    43 https://www.vice.com/en/article/mcdonalds-cannot-get-to-net-zero-feeding-the-world-hamburgers-experts-say/

    44 https://www.vox.com/future-perfect/362224/environment-groups-meat-industry-lies-global-warming-climate-change-wwf

    45 https://www.bbc.com/news/science-environment-47029485

    46 https://grist.org/food/beyond-greenwashing-how-restaurants-could-actually-address-climate-pollution/

    47 https://www.bloomberg.com/news/articles/2021-12-01/the-carbon-footprint-of-mcdonald-s-menu-very-big?embedded-checkout=true&sref=Brs3FVmA

    48 https://www.theguardian.com/environment/2024/apr/05/letitia-james-jbs-meat-lawsuit-greenwashing

    49 https://ag.ny.gov/sites/default/files/court-filings/jbs-complaint.pdf, 30

    50 https://www.nytimes.com/2024/09/18/climate/tyson-beef-climate-lawsuit.html

    51 https://earthjustice.org/wp-content/uploads/2024/09/2024.09.18-tyson-complaint.pdf, 4

     

       
     

     

    ·Similar greenwashing lawsuits have been filed against Coca-Cola,52 Lululemon,53 H&M,54 Volkswagen,55 Unilever,56 Proctor & Gamble,57 and Amazon58 for allegedly misleading customers about the sustainability of their products.

     

    H&M and Unilever responded to the lawsuits filed against them by releasing more robust climate transition plans that provided additional transparency on their progress and actions toward meeting their sustainability targets, resulting in reputational benefits.59

     

    McDonald's climate goals and reporting may be construed as similarly misleading to those of JBS and Tyson. The Company could mitigate these legal risks by releasing elements of its climate transition plan that provide details on how it will reduce its emissions from the beef supply chain or diversify its protein offerings to achieve its climate emissions reduction targets.

     

    V.FAILURE TO MEET INVESTOR EXPECTATIONS

     

    Investors expect companies to transparently and effectively mitigate climate risk.60 McDonald’s recognizes this expectation by setting near-term GHG reduction targets validated by the SBTi. The Company’s current reporting fails to describe its plans and actions to reach its targets and manage climate-related risks.

     

    Investors look for companies to go beyond identifying climate risk and begin disclosing strategies to respond to that risk and reach sustainability objectives. 650 investors representing USD $33 trillion in assets under management signed the 2024 Global Investor Statement calling for governments to mandate the disclosure of science-based climate transition plans.61 Further, a PwC survey of investors found that 69% believed developing a data-driven, enterprise-level climate strategy will help prepare companies for climate risk.62

     

     

    _____________________________

    52 https://www.esgdive.com/news/d-c-appeals-court-rules-coca-cola-must-face-greenwashing-lawsuit/726071/

    53 https://www.forbes.com/sites/jonmcgowan/2024/05/13/canada-launches-greenwashing-investigation-into-lululemon/

    54 https://fashionunited.uk/news/fashion/h-m-sued-for-greenwashing-claims-again/2022111466226

    55 https://www.bbc.com/news/business-34324772

    56 https://www.esgdive.com/news/unilever-greenwashing-investigation-uk/703047/

    57 https://www.reuters.com/business/retail-consumer/procter-gamble-accused-greenwashing-charmin-toilet-paper-lawsuit-says-2025-01-17/

    58 https://www.marketwatch.com/press-release/hagens-berman-amazon-faces-consumer-lawsuit-alleging-deforestation-behind-amazon-basics-paper-products-and-greenwashing-

    cover-up-7f089d95

    59 https://initiatives.weforum.org/net-zero-supply-chain-support-hub/unilever; https://trellis.net/article/unilever-takes-tougher-stance-supply-chain-emissions/; https://hmgroup.com/news/hm-group-scores-a-in-climate-leadership-in-new-cdp-ranking/; https://www.fibre2fashion.com/news/fashion-announcement-news/sweden-s-h-m-group-ranks-3rd-in-climate-energy-transparency-report-297160-newsdetails.htm

    60 https://theinvestoragenda.org/wp-content/uploads/2024/08/2024-Global-Investor-Statement-to-Governments-on-the-Climate-Crisis.pdf; https://www.climateaction100.org/news/as-the-2024-proxy-season-gets-underway-climate-action-100-investors-call-on-companies-to-improve-climate-lobbying-accounting-and-

    governance/

    61 https://www.unepfi.org/wordpress/wp-content/uploads/2024/09/FINAL-2024-Global-Investor-Statement_17-Sep-2024.pdf

    62 https://www.pwc.com/gx/en/issues/esg/ceos-investors-climate-change-expectations.html

     

       
     

     

    Climate transition plans have become a best practice for companies to produce and demonstrate credible, forward-looking strategies to reach sustainability targets. One in four of the 23,000 companies that report to the CDP have released a climate transition plan, and the number of companies with a plan increased 44% between 2022 and 2023.63

     

    In its 2023 CDP report, McDonald’s notes it has created a climate transition plan, but it is not publicly available.64 The Taskforce on Climate-Related Financial Disclosures encourages companies to disclose key elements of their climate transition plans, including current and planned initiatives to address material sources of GHG emissions and metrics to monitor and track progress.65

     

    Investors are increasingly looking for disclosure of a climate transition plan to achieve climate goals. By providing information necessary to assess whether McDonald’s is on track to meet its targets, the Company will better protect shareholder value and meet investor expectations for climate disclosures.66

     

    RESPONSE TO OPPOSITION STATEMENT

     

    In its opposition statement, McDonald’s states that its existing efforts and reporting fulfill the objectives of the proposal. Yet, investors’ inability to determine if the Company is making credible progress toward meeting its GHG reduction targets with existing disclosures demonstrates the need for the assessment the proposal requests.

     

    McDonald’s fails to detail how and if existing initiatives focused on reducing beef emissions are leading to progress toward its climate commitments, as well as outline future investments and plans to achieve targets. The Company claims that scaling regenerative agriculture and grazing and supplier engagement are “key driver[s] for progress against many of our other long-term commitments,” including climate, yet it does not disclose metrics on these actions related to GHG emissions.67 McDonald’s similarly fails to quantify the projected impacts or ability to scale specific projects, including its Adaptive Multi-Paddock (AMP) Grazing Project or Ranch Systems and Viability Planning network.68

     

    Regenerative agriculture and grazing face criticism from experts and the media.69

    ·One study found that even under the assumption that regenerative grazing can sequester and store carbon, it requires up to 2 to 2.5 times more land than that of conventional ranching.70 The amount of land necessary to effectively reduce emissions from regenerative grazing may not be available, as cattle are already grazed on one-third of U.S. land.71

     

     

    _____________________________

    63 https://www.cdp.net/en/climate-transition-plans

    64 https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/McDonalds_CDP_Response_Climate_Change_2023.pdf, 18

    65 https://www.ifrs.org/content/dam/ifrs/knowledge-hub/resources/tpt/disclosure-framework-oct-2023.pdf, 28; https://assets.bbhub.io/company/sites/60/2021/07/2021-Metrics_Targets_Guidance-1.pdf, 42

    66 https://theinvestoragenda.org/blog/review-of-230-investors-finds-icaps-are-becoming-common-practice/

    67 https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/McDonalds_PurposeImpact_ProgressReport_2023_2024.pdf, 37

    68 https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/McDonalds_PurposeImpact_ProgressReport_2023_2024.pdf, 37-38

    69 https://www.science.org/content/article/farmers-paid-millions-trap-carbon-soils-will-it-actually-help-planet; https://www.sciencedirect.com/science/article/abs/pii/S0016706122003354; https://insideclimatenews.org/news/02102017/meat-eating-grass-fed-beef-climate-change-cattle/; https://oms-www.files.svdcdn.com/production/downloads/reports/fcrn_gnc_report.pdf

    70 https://www.vox.com/future-perfect/362224/environment-groups-meat-industry-lies-global-warming-climate-change-wwf

    71 https://www.vox.com/future-perfect/362224/environment-groups-meat-industry-lies-global-warming-climate-change-wwf

     

       
     

     

    ·A study run by the Food Climate Research Network at Oxford University found that under “very generous assumptions,” grazing management could only offset up to 1.6 percent of total human-caused greenhouse gas emissions.72
    ·There is also a high degree of uncertainty when quantifying the soil carbon sequestered through regenerative tactics. One study found these uncertainties could exceed 100%, meaning the models used to determine emissions reductions could not assess whether soil carbon had accumulated or decreased over time.73

     

    The large amount of land required to effectively reduce GHG emissions from regenerative grazing and agriculture and questions about the practice’s efficacy calls McDonald’s plans to scale such initiatives into question. Disclosing data and additional plans to credibly address beef emissions would better demonstrate how the Company is advancing toward reaching its reduction targets and mitigating climate-related risks.

     

    CONCLUSION

     

    Including more robust disclosures that demonstrate how and whether McDonald's will achieve its climate targets, particularly by decreasing emissions from its beef supply chain and expanding its protein offerings, will assure investors that the Company is taking the necessary steps to address the commodity price risks, competitive risks, reputational risks, and legal risks associated with an inadequate climate transition plan.

     

    Shareholders are urged to vote FOR Proxy Item Number 5:

     

    For questions regarding this proposal, please contact Giovanna Eichner, Green Century Capital Management, [email protected].

     

    This is not a solicitation of authority to vote your proxy. Please DO NOT send us your proxy card; Green Century Equity Fund is not able to vote your proxies, nor does this communication contemplate such an event. Green Century Equity Fund urges shareholders to vote for Proposal No. 5 following the instruction provided on the management’s proxy mailing.

     

     

    _____________________________

    72 https://insideclimatenews.org/news/02102017/meat-eating-grass-fed-beef-climate-change-cattle/

    73 https://www.science.org/content/article/farmers-paid-millions-trap-carbon-soils-will-it-actually-help-planet

     

     

     

     

     

     

    Get the next $MCD alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $MCD

    DatePrice TargetRatingAnalyst
    5/6/2025Buy → Neutral
    Northcoast
    3/27/2025$335.00 → $340.00Overweight
    KeyBanc Capital Markets
    1/10/2025$311.00 → $334.00Neutral → Buy
    Citigroup
    10/23/2024$290.00 → $285.00Buy → Neutral
    Guggenheim
    10/23/2024$320.00 → $290.00Outperform → Neutral
    Robert W. Baird
    10/15/2024$295.00 → $350.00Buy
    Truist
    10/8/2024Hold → Buy
    Argus
    9/9/2024$310.00 → $330.00Buy
    Jefferies
    More analyst ratings

    $MCD
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • President, McDonald's USA Erlinger Joseph M. sold $299,072 worth of shares (939 units at $318.50), decreasing direct ownership by 7% to 12,100 units (SEC Form 4)

      4 - MCDONALDS CORP (0000063908) (Issuer)

      4/23/25 4:32:30 PM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • SEC Form 4 filed by Director Weaver Amy E

      4 - MCDONALDS CORP (0000063908) (Issuer)

      4/2/25 4:56:17 PM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • SEC Form 4 filed by Director Taubert Jennifer L

      4 - MCDONALDS CORP (0000063908) (Issuer)

      4/2/25 4:54:07 PM ET
      $MCD
      Restaurants
      Consumer Discretionary

    $MCD
    Financials

    Live finance-specific insights

    See more
    • McDONALD'S REPORTS FIRST QUARTER 2025 RESULTS

      Global comparable sales decreased 1.0%; excluding Leap Day in the prior year, global comparable sales were essentially flatSystemwide sales* to loyalty members across 60 loyalty markets were more than $31 billion for the trailing twelve-month period and approximately $8 billion for the quarterCHICAGO, May 1, 2025 /PRNewswire/ -- McDonald's Corporation today announced results for the first quarter ended March 31, 2025. "McDonald's has a 70-year legacy of innovation, leadership, and proven agility, all of which give us confidence in our ability to navigate even the toughest of market conditions and gain market share," said Chairman and CEO Chris Kempczinski. "Consumers today are grappling wit

      5/1/25 7:00:00 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • McDONALD'S REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

      Global Systemwide sales* were over $130 billion for the full year, with full year growth of more than $1 billion (more than $2 billion in constant currencies)Systemwide sales to loyalty members were approximately $30 billion for the full year and approximately $8 billion for the quarter across 60 loyalty markets, with full year growth of 30% over prior year90-day active loyalty users were over 175 million across 60 loyalty markets as of year-end, with growth of approximately 15% over prior yearCHICAGO, Feb. 10, 2025 /PRNewswire/ -- McDonald's Corporation today announced results for the fourth quarter and year ended December 31, 2024. "Accelerating the Arches continues to be the right strate

      2/10/25 7:00:00 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • McDONALD'S ANNOUNCES QUARTERLY CASH DIVIDEND

      CHICAGO, Feb. 6, 2025 /PRNewswire/ -- Today, McDonald's Board of Directors declared a quarterly cash dividend of $1.77 per share of common stock payable on March 17, 2025 to shareholders of record at the close of business on March 3, 2025. Upcoming Communications For important news and information regarding McDonald's, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company's Internet home page at www.investor.mcdonalds.com. McDonald's uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information. About McDonald's McDonald's i

      2/6/25 6:30:00 PM ET
      $MCD
      Restaurants
      Consumer Discretionary

    $MCD
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • McDONALD'S REPORTS FIRST QUARTER 2025 RESULTS

      Global comparable sales decreased 1.0%; excluding Leap Day in the prior year, global comparable sales were essentially flatSystemwide sales* to loyalty members across 60 loyalty markets were more than $31 billion for the trailing twelve-month period and approximately $8 billion for the quarterCHICAGO, May 1, 2025 /PRNewswire/ -- McDonald's Corporation today announced results for the first quarter ended March 31, 2025. "McDonald's has a 70-year legacy of innovation, leadership, and proven agility, all of which give us confidence in our ability to navigate even the toughest of market conditions and gain market share," said Chairman and CEO Chris Kempczinski. "Consumers today are grappling wit

      5/1/25 7:00:00 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • The World Is Yours to Build: McDonald's USA Unlocks A Minecraft Movie Meal and Happy Meal

      Fans can enter creative mode ahead of the film's release with a new, limited-time meal and Happy Meal, both of which include collectibles, gaming exclusives & more CHICAGO, March 20, 2025 /PRNewswire/ -- From crafting pixel-perfect replicas of our Golden Arches and world-famous menu items, to stacking block upon block into full-on restaurants, fans have been building their love for McDonald's into Minecraft for years. Now, inspired by their imagination – and the global big screen adventure, A Minecraft Movie, debuting in theaters April 4 – we're bringing the game's cinematic world to McDonald's. Introducing, A Minecraft Movie Meal and A Minecraft Movie Happy Meal, dropping together for the f

      3/20/25 8:00:00 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • McDONALD'S REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

      Global Systemwide sales* were over $130 billion for the full year, with full year growth of more than $1 billion (more than $2 billion in constant currencies)Systemwide sales to loyalty members were approximately $30 billion for the full year and approximately $8 billion for the quarter across 60 loyalty markets, with full year growth of 30% over prior year90-day active loyalty users were over 175 million across 60 loyalty markets as of year-end, with growth of approximately 15% over prior yearCHICAGO, Feb. 10, 2025 /PRNewswire/ -- McDonald's Corporation today announced results for the fourth quarter and year ended December 31, 2024. "Accelerating the Arches continues to be the right strate

      2/10/25 7:00:00 AM ET
      $MCD
      Restaurants
      Consumer Discretionary

    $MCD
    Leadership Updates

    Live Leadership Updates

    See more
    • Condado Tacos Announces Derrick Pratt as New Chief Executive Officer

      Following his success as Chief Operating Officer at Portillo's, and prior tenure leading world-class operations at Starbucks and McDonald's, Pratt will lead Condado into its next phase of growth Condado Tacos (the "Company"), today announced that after an exhaustive nationwide search it has appointed Derrick Pratt as the Company's next Chief Executive Officer, effective July 1, 2024. "On behalf of the entire Board of Managers, we are thrilled to welcome Derrick as the next CEO of Condado Tacos," said John G. Troiano, Chairman of the Board. "Derrick brings a wealth of experience in running successful growth-oriented restaurant brands and has an exceptionally strong track record of guidin

      6/4/24 9:52:00 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • McDonald's and Paramount Among Latest Top-Tier Organizations to Join the Financial Literacy for All Movement

      Leading Companies Commit to Join 10-Year Initiative Seeking to Engage American Families with Financial Literacy Resources, Tools and Education Where They Live, Work, and Learn Financial Literacy for All (FL4A), a national initiative dedicated to embedding financial literacy into the nation's schools, workplaces, communities, and culture, today announced that McDonald's Corporation (NYSE:MCD) and Paramount Global (Nasdaq: PARA, PARAA) have joined a coalition of nearly 50 leading organizations that have committed to the movement. With these new additions, FL4A members now make up more than one-quarter of the companies that comprise the Dow Jones Industrial Average (DJIA) and have committed

      12/8/23 10:45:00 AM ET
      $MCD
      $PARA
      Restaurants
      Consumer Discretionary
      Broadcasting
      Industrials
    • McDonald's USA Appoints Tabassum Zalotrawala as Senior Vice President and Chief Development Officer for US Business

      CHICAGO, March 15, 2023 /PRNewswire/ -- Today, McDonald's USA President Joe Erlinger sent the following message to the McDonald's US System announcing new Senior Vice President and Chief Development Officer, Tabassum Zalotrawala.  The digital CV and headshot for Tabassum Zalotrawala are embedded within this release.  +++  With the announcement of an evolved Accelerating the Arches strategy to grow faster, meet customer expectations, and make our brand even stronger through new restaurant development, we committed to leveraging our position of strength to grow the number of McD

      3/15/23 10:35:00 AM ET
      $MCD
      Restaurants
      Consumer Discretionary

    $MCD
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • SEC Form SC 13G/A filed by McDonald's Corporation (Amendment)

      SC 13G/A - MCDONALDS CORP (0000063908) (Subject)

      2/13/24 5:09:38 PM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • SEC Form SC 13G/A filed by McDonald's Corporation (Amendment)

      SC 13G/A - MCDONALDS CORP (0000063908) (Subject)

      2/9/23 11:25:14 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • SEC Form SC 13G/A filed

      SC 13G/A - MCDONALDS CORP (0000063908) (Subject)

      2/10/21 11:28:19 AM ET
      $MCD
      Restaurants
      Consumer Discretionary

    $MCD
    Insider Purchases

    Insider purchases reveal critical bullish sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Director Daniel Kareem bought $40,074 worth of shares (145 units at $276.37) (SEC Form 4)

      4 - MCDONALDS CORP (0000063908) (Issuer)

      2/14/25 4:27:56 PM ET
      $MCD
      Restaurants
      Consumer Discretionary

    $MCD
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more
    • McDonald's downgraded by Northcoast

      Northcoast downgraded McDonald's from Buy to Neutral

      5/6/25 8:03:27 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • KeyBanc Capital Markets reiterated coverage on McDonald's with a new price target

      KeyBanc Capital Markets reiterated coverage of McDonald's with a rating of Overweight and set a new price target of $340.00 from $335.00 previously

      3/27/25 8:40:24 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • McDonald's upgraded by Citigroup with a new price target

      Citigroup upgraded McDonald's from Neutral to Buy and set a new price target of $334.00 from $311.00 previously

      1/10/25 8:28:58 AM ET
      $MCD
      Restaurants
      Consumer Discretionary

    $MCD
    SEC Filings

    See more
    • McDonald's Corporation filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

      8-K - MCDONALDS CORP (0000063908) (Filer)

      5/1/25 7:02:38 AM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • SEC Form SCHEDULE 13G filed by McDonald's Corporation

      SCHEDULE 13G - MCDONALDS CORP (0000063908) (Subject)

      4/29/25 12:53:53 PM ET
      $MCD
      Restaurants
      Consumer Discretionary
    • SEC Form DEFA14A filed by McDonald's Corporation

      DEFA14A - MCDONALDS CORP (0000063908) (Filer)

      4/25/25 3:08:06 PM ET
      $MCD
      Restaurants
      Consumer Discretionary