McDonald’s is one of the world’s most recognizable and profitable brands. The well-known brand started out as a humble hamburger restaurant in the 1940s and grew to become a global presence (McDowell 2020). It’s no wonder that the fast-food chain has become so iconic when there are more than 39,000 outlets in over 119 countries worldwide (Elgin 2021). McDonald’s reported that global revenues topped $23.2 billion in 2021, a 21 per cent jump from 2019, which is surprising given the impact of Covid lockdowns. However, price increases on many of the fast-food chain’s products helped McDonald’s more than offset sharp price rises in food and labour costs, and this helped to propel the company’s revenue in 2021 to the highest level since 2016. Profits also soared 89 per cent from a year earlier to $7.5 billion, so things are looking positive for the ubiquitous brand (Creswell 2022).

However, in recent years, McDonald’s and other fast-food suppliers, including Burger King, Domino’s Pizza, Chipotle Mexican Grill, Wendy’s, Pizza Hut and KFC, have come under fire from a coalition of investors who signed a letter asking them to reduce the carbon footprint of their meat and dairy supply chains (BBC 2021). These investors, facilitated by global investor network FAIRR and sustainability organization Ceres, originally launched in January 2019 with the backing of investors with combined assets of $6.5 trillion. Since then, the coalition has grown by 75 per cent to include more than 90 investors with combined assets of $11.4 trillion, signalling an increased awareness among investors of the threats posed to food systems by climate change, water scarcity and water pollution. The fast-food giants were asked to de-risk their meat and dairy supply chains by setting ambitious targets to reduce their greenhouse gas emissions, to undertake climate risk scenario analysis, and reduce the water usage and water quality impacts in their animal protein value chains (Ceres 2021). Since 2019, this global investor engagement with fast food giants has resulted in fast-food companies ramping up their climate commitments. McDonald’s became the first restaurant company in the world to address global climate change by setting a Science Based Target to significantly reduce its greenhouse gas emissions. These targets were set in 2018, prior to pressure from the investor coalition, as the global brand wanted to send a strong message that it took environmental concerns seriously (Liedke 2018)...... 

Questions

1. Highlight the environmental and social impacts of fast food in general. Comment on whether or not you think it is possible for fast-food chains such as McDonald’s to ever be sustainable. 

2. How has McDonald’s responded to public concerns about its environmental impact? Visit the McDonald’s UK website to assess how the brand has responded to these environmental concerns and shown commitment to a range of environmental issues. Do you think its environmental targets are achievable? 

3. A lot of focus is on fast-food companies’ environmental responsibilities, but do consumers have responsibilities here too? Do you think the average consumer cares about buying from a sustainable brand? What can consumers do to reduce their fastfood environmental impact? 

4. Why is ‘greenwashing’ seen by many as an unethical business practice? Do you think McDonald’s is guilty of the greenwashing claims levelled against it?

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