McDonald’s deforestation footprint: We’re not lovin’ it

8 minute read

The company's sourcing policies play a crucial role in influencing deforestation-linked supply chains, setting an example for the broader food market. While the company has committed to eliminating deforestation from its supply chains by 2030, there are ongoing concerns about the execution of its strategy.

Since 2021, McDonald's has tripled its volume of bond issuances, potentially raising deforestation exposure in investment-grade portfolios. With a substantial presence in Europe, aligning its sourcing policies with the EU's deforestation-free products regulation by end of 2024 is crucial to avoiding potential negative financial consequences. McDonald's aims to eliminate deforestation from its supply chains by 2030, but the five-year gap introduces uncertainty.

Comprehensive disclosure of the company's deforestation impact is vital for effective investor engagement. Investors should ask McDonald's to disclose the volumes of products imported from high-risk countries for their European operations.