McDonald’s and Other Food Companies Struggle to Meet Emissions Targets, Leading to Rising Levels
In 2016, McDonald’s announced ambitious plans to reduce greenhouse gas emissions by over a third across its operations by 2030. It further pledged to achieve “net zero” emissions by 2050. However, the company’s latest report reveals the opposite: emissions in 2021 were 12 percent higher than the baseline set in 2015. McDonald’s is not alone in this struggle, as more than half of the world’s largest food and restaurant companies either haven’t made progress on their emissions goals or have seen increasing emissions levels.
The bulk of emissions, often more than 90 percent, come from these companies’ supply chains, particularly those involving cows and wheat used in burger and cereal production. While efforts have been made to reduce plastic packaging and water consumption, many food and beverage companies and restaurant chains find it challenging to reconcile robust growth with their climate objectives.
The COVID-19 pandemic has shifted consumer patterns, causing significant demand for food companies. Simultaneously, supply chains have been disrupted by factors such as the war in Ukraine and extreme weather events like droughts and floods. These disruptions have forced companies to source ingredients and goods from different suppliers.
Companies like McDonald’s, PepsiCo, and Chipotle claim to be working with suppliers to reduce emissions. However, quantifying and reducing supply chain emissions is a significant challenge and a key pathway to achieving net-zero goals. Companies have enlisted outside groups like the Science Based Targets initiative to set and approve emission reduction goals. Nevertheless, many are struggling to integrate growth and innovation into their climate transition plans, leaving them exposed to climate risks.
While some companies have reported declines in emissions alongside business growth, many have not standardized their emissions reporting. Publicly available climate-related reports often require extrapolation, modeling, and guesswork, and some companies may not disclose certain emissions. For example, Tyson Foods and JBS, major meat processors, did not report supply chain emissions. Cows, known for producing methane gas, have drawn particular attention from climate activists.
Despite criticisms and challenges, companies like Mars have managed to reduce emissions while increasing revenue. Mars aims to cut its total emissions by 50 percent from its 2015 levels by 2030 and achieve net-zero emissions by 2050. Companies such as Starbucks, although reporting emission increases, highlight that they are taking steps towards becoming resource-positive organizations.
In conclusion, the global food system, accounting for one-third of the world’s greenhouse gas emissions, faces pressure from consumers and investors to develop tangible plans for reducing emissions. Achieving emission targets requires collaboration between companies, governments, farmers, and consumers to address cost challenges and ensure sustainable farming practices.+
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