McDonald s
Sustainability Report2023

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

2

What’s Inside
Introduction

Our Planet

Food Quality &Sourcing

Jobs, Inclusion &Empowerment

Community
Connection

McDonald’s welcomes and serves many

We take climate action seriously—for

We prioritize food safety above every-

We believe that people are the source of the

As echoed in the words of Ray A. Kroc,

customers every day, and as a member

our planet and the future. To achieve ourthing else and have implemented astrength of our business. We aim to create a work-

the founder of McDonald’s, “We have anof the community, we have a responsi-

goal of net zero emissions by 2050, we

stringent quality assurance system fromplace where all people from diverse backgrounds

obligation to give something back to thebility to address global issues.

proactively engage in initiatives againstsourcing to restaurants to ensure that all

can take an active role, be true to themselvescommunity that gives so much to us.” As

In this report, we introduce our efforts

global climate change and environ-stakeholders maintain and improve theand grow, and feel positive at work. Guided by oura member of the community, putting a

to feed and foster communities whilemental issues as a member of societysystem in an ethical and sincere man-values, we promote safe, respectful, and inclu-

smile on the faces of children and theirworking toward the realization of a sus-

to contribute to environmental conser-

ner. We are advancing efforts together

sive workplaces, and offer opportunities to growfamilies, customers, the community, andtainable society.

vation. We constantly consider ways

with our suppliers to source sustainablethrough day-to-day training and professionalsociety as a whole is important to us.

to reduce environmental impact in our

ingredients and resources to ensure a

educational institutions. We support the “Up to You”

business activities and take action.

stable supply and address environmen-

career building program where the sky is the limit

tal and social issues.

based on employees’ own choices and efforts.

17
Food Safety20	
Our Responsibility Toward
Children’s Health and Nutrition
21
Responsible Sourcing
22 Animal Health and Welfare

24
27
29

03
04
05
06
07

A Message From Our CEO
Who We Are
The McDonald’s System
Sustainability Policy and Strategy
2023 Highlights

12
Climate Action
14	Packaging, Happy Meal® Toys &Food Waste

Diversity, Equity & Inclusion(DE&I)
Talent Development and CareerFostering Safe, Respectful, and Inclusive
Workplaces

31
Ronald McDonald House
32 Support of Youth Sports
33	
Activities to Support Children’s
Growth & Safety
34 Education Support

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

3

A Message From Our CEO

Together with you for a better future
Our role and responsibility to the environment and society

Tamotsu Hiiro
McDonald's Company (Japan), Ltd.
Representative Director,
President and Chief Executive Officer

In 2023, the economy showed signs of grad-

Our purpose of “feeding and fostering com-build a better business and a more sustain-

ual recovery, but the business environment

munities” is shared by McDonald’s aroundable society.

remained unpredictable due to persistent

the globe. In order to realize our purpose,

Our business is built on our relationships with

inflation, soaring material prices, and ex-

we have defined our mission as “what wea variety of stakeholders, including manychange rate fluctuations. Despite this chal-should do” and our values as “how to makecustomers visiting McDonald’s restaurants

lenging situation, McDonald’s Japan offeredit happen.” These are practiced by 200,000

throughout the country, locally rooted ownerappealing menu items and implemented acrew members and employees working inoperators engaged in restaurant operations,variety of initiatives for our customers to en-approximately 3,000 restaurants nationwide

and suppliers. Together, we will work on ini-

joy a highly satisfying restaurant experience.

as they serve our customers every day. We

tiatives relating to the happiness and safety

The 2023 Sustainability Report covers ourwill continue to make delicious feel-goodof people and create a better future. Moving

policy and goals on sustainability including

moments easy for everyone, providing top

forward, we will continue to fulfill our roles

our initiatives and progress for the past year.

Quality, Service, Cleanliness, and Valueand responsibilities in the area of Environ-

It is my hope that by disclosing this informa-(QSC&V) to customers. In addition, we will

ment, Social, and Governance (ESG) and aimtion, many stakeholders will share our inten-

engage in activities that leverage our scale

for long-term and stable growth.

tion of achieving a sustainable environment

and further deepen ties with our customers

and society.

and communities, and take actions to help

Introduction

McDonald s Sustainability Report 2023

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

Who We Are
Who We Are

McDonald's Company (Japan), Ltd.
Our Purpose

Location	6-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-1339, Japan
Shinjuku i-Land Tower
EstablishedMay 1, 1971

Capital

100 million yen

Feed and Foster Communities

Business Activities	The operation of a hamburger restaurant chain and all other relating
businesses
Number of restaurants

2,982

Sales 	777.7 billion yen (total sales of company-operated and franchised
restaurants)
Number of employees 	2,633 (excluding contract employees)
Part-timers Approx. 200,000 (includes both company-operated andfranchised restaurants)

Our Mission

Making Delicious Feel-Good Moments Easy for Everyone*Figures are as of December 2023

Our Values
CSR Reporting Scope
Reporting organization

McDonald’s Company (Japan), Ltd. (including McDonald’s Holdings Company (Japan), Ltd.)

Reporting period

January 1 to December 31, 2023

Reporting Areas

Social responsibility in general (Environmental, Social, and Governance)

Editor and Contact

Communication & Corporate Relations Division

Serve

Inclusion

Integrity

Community

FamilyWe put ourcustomers andpeople first.

We open our doors
to everyone.

We do
the right thing.

We are goodneighbors.

We get better
together.

4

Introduction

McDonald s Sustainability Report 2023

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

The McDonald’s System
Our Operations, Employees and Franchisees

Our Suppliers
Complying with the Supplier
Code of Conduct and responsible
sourcing

Fostering a Charity Culture

Food Safety

Enhancing the efficiency oflogistics in our supply chain

Our Communities
Ronald McDonald House Charities

Managing food safety from farm to customer

Packaging, Happy Meal® Toys & Food Waste
Reducing plastic and waste

Protecting nature, biodiversity, and ecosystems

Providing Support for Children’s Growth
Supporting youth sports, childcare, and education

Reducing office greenhouse gas (GHG) emissions
Tackling deforestation in our
supply chain

Our Responsibility Toward
Children’s Health and Nutrition
Respecting humanrights in our supply
chain

Offering nutritionallybalanced meals

Disclosing nutritional information

Within All Buildings/Sites(Company-operated restaurants and Franchised restaurants)
Reducing greenhousegas emissions in our
restaurant operations

Designing
restaurants using
domestic wood

Advancing plastic reduction
and use of FSC®-certified andrecycled materials

Franchised restaurants
Company-operated restaurants

Company Employees and Franchisee Employees
Animal health & welfare

Diversity, Equity & Inclusion(DE&I)

Talent development &careerFostering safe, respectful,and inclusive workplaces

Engaging in safety &security initiatives andcommunity cleanup

Hiring locals

5

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Community Connection

Jobs, Inclusion & Empowerment

Data

6

Sustainability Policy and Strategy
Sustainability Strategy
To fulfill our responsibility on different issues surrounding Environmental, Social, and Governance (ESG), we
Together with you
すべては、おいしさと笑顔を地域の皆さまにお届けするために。
focus on four areas of impact: Food Quality & Sourcing,
for a better future
Our Planet, Community Connection, and Jobs, Inclusion & Empowerment, and work on them by leveraging
McDonald’s welcomes many customers every day
our strength and scale.
and serves meals, which means that as a commuSustainability-related issues are managed and adnity member, we have a responsibility to address
vanced by Sustainability & ESG Department andglobal issues.
supervised by VP & Officer of Communication & CR Division. The Sustainability & ESG Department compiles
That’s what we believe, and that’s why we will conthe progress and status of individual initiatives that are
tinue to offer safe, secure, and high-quality meals.
being implemented, and formulates company-wide
strategies and plans relating to sustainability. Compiled
We take climate action seriously.
information on ESG initiatives is reported to the CEO
We support the daily lives of everyone in the comvia the VP in charge and also to the Board of Directors
munity.
periodically (once a year or more).
We increase opportunities for all people to workand grow.
We will continue to feed and foster our communities and keep moving forward.

Governance
McDonald’s endeavors to maximize the interests of all
stakeholders including shareholders, customers, staff,
franchisees, and suppliers. We believe that it is important to enhance the transparency and efficiency of ourbusiness operations and realize sustainable enhancement of the McDonald’s Group’s corporate value. To
this end, we separate the management decision-making and supervisory functions from the business execution functions, ensure the establishment of a timely,
accurate, and efficient management and execution
system, and work to achieve highly transparent management with the participation of external directors.

Our Planet

We take climate action
seriously—for our planet andthe future.

We will continue to offer
safe, secure, and highquality meals.

Food Quality& Sourcing

The Four
Impact Areas

Jobs, Inclusion& Empowerment

We increase opportunities for all people to workand grow.

Business Resilience
The Enterprise Risk Management Committee
identifies, evaluates, and manages all risks,
including compliance risks. In principle, theEnterprise Risk Management Committee meetsquarterly, with additional meetings held when it isdeemed necessary to discuss significant risks ona case-by-case basis, and reports on its activities
to the Board of Directors regularly (once a year inprinciple).

We support the daily lives ofpeople in the community.

Community
Connection

SDG-Focused Targets

Please visit our website for more information:

https://www.mcdonalds.co.jp/sustainability/sdgs/
Please also refer to “Our Approach and Actions Toward Sustainability,” whichis also included in the Annual Securities Report for the fiscal year ended
December 31, 2023 (disclosed on March 27, 2024):

https://www.mcd-holdings.co.jp/ir/library_financial_report/

Introduction

McDonald s Sustainability Report 2023

Our Planet

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

Community Connection

Data

7

2023 Highlights
Our Planet
Climate Action
P12
McDonald’s global targets
・Achieve net zero emissions by 2050
・Reduce GHG emissions by 50.4% by the end of 2030 from a 2018base year

Packaging, Happy Meal® Toys & Food Waste

GHG emissions*

McDonald’s is aiming to replace all packaging for our customers with renewable, recycled, or certified materi-

Officeals and transition to sustainable materials for all Happy Meal toys with renewable, recycled, or certified materi-291 t-33.1% vs. 2018

Company-operated and franchised restaurants

331,622 t-16.1% vs. 2018P14

als by the end of 2025.
McDonald’s global targets
 e aim to source 100% of our customer packaging from renewable, recycled, or certified materials by the end of・W
2025.
・We will reduce plastics and transition to more sustainable materials in our Happy Meal toys around the globe.

*Emissions from electricity and gas

Number of restaurants using renewable energy

Approximately

350

FSC®-certified
paper containers andpackaging for customers

Recycling rate ofused cooking oil

100 %Reduction of amount of plastics
through transition to sustainable
materials in packaging

Approximately

AlmostFood waste rate

Food recycling rate

2.3 %

100 %

68.6 %

Number of toys collected

Total ofapproximately

900 t

19 million units

Number of trays made from toy recycling

Total ofapproximately

512,500<McDonald’s Japan, As of December 2023>

Introduction

McDonald s Sustainability Report 2023

Our Planet

Food Quality & Sourcing

Community Connection

Jobs, Inclusion & Empowerment

8

Data

2023 Highlights

Food Quality& Sourcing

Our Responsibility Toward
Children’s Health and Nutrition
P20

We serve Happy Meal® sets with an even higher level of safety andsecurity.

Food Safety
P17

Removal of synthetic flavors
and colors in Happy Meal sets

From farm to customer, we work with suppliersand experts to ensure that our products meet a100 %variety of standards.

Percentage of lettuce producers with Global
G.A.P. Plus Add-on certification

100 %%

forests, water resources, and ecosystems.

*SQMS: A more robust food safety management
system that consists of McDonald’s expectations,based on GFSI benchmark

DQMP
Number and percentage of distribution centers
audited by a third party and met our standards

15 locations

P21

We actively source sustainable ingredients, taking into consideration

Percentage of suppliers that meet SQMS
requirements

100 %Responsible Sourcing

100 %*DQMP: Distributors
Quality Management
ProgramNumber and percentage of restaurants that
met audit requirements conducted by external
food quality auditors

Approximately

3,000 100 %Percentage of white fishcaught for Filet-O-Fish® from
MSC-certified fisheries

RSPO-certified
palm oil forfrying oil

100 %

100 %

Rainforest Alliancecertifiedcoffee beans

FSC®-certified paper containers
and packaging for customers, paper
straws, wooden cutlery, tray liners

100 %

100 %

Animal Health & Welfare
P22<As of December 2023>

Introduction

McDonald s Sustainability Report 2023

Our Planet

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

Community Connection

9

Data

2023 Highlights

Jobs, Inclusion& Empowerment

Total number of employees (full-time employees)

2,633

29.4 %

Percentage
of femaleexecutives

Female38.0 %

Diversity, Equity & Inclusion (DE&I)

Gender ratio

P24

We aim to realize a workplace where
people from diverse backgrounds cantake an active role, be true to themselvesand grow, and feel positive at work.

Male
Total number of crew members

Approximately

Number of non-Japanese crew

Approximately

Approximately

Senior Crew (60+)

Approximately

11,50062.0 %

18,000
Employees with disabilities

2.3 %*Percentage of company-operated restaurants

25.5 %

Percentage offemalemanagers

2030 target

40 %200,000

Number of crew members aged 24 or under

130,000

32.7 %

Percentage
of female
restaurant
managers

Talent Development &CareerP27

We offer opportunities to grow throughday-to-day training and professional
educational institutions and support

Staff engagement

89 %*Company-operated staff (fulltime employees and crew)

Return to work rate
after parental leave

100 %Total monthly average overtime
hours among full-time employees

Turnover rate

6.2 %

18.4 hours

Male childcare leave rate

29 %*Percentage of full-time & company-operated
restaurant staff in 2023

Paid leave rate

57.1 %

Number of staff that took maternity,childcare, and nursing care leave

105*Full-time employees of company-operated restaurants (McDonald's Company (Japan), Ltd.)the “Up to You” career building program
where the sky is the limit based on employees’ own choices and efforts.
Number of employees and crew members taking classes at Hamburger University a year

Approximately

14,000Adults with crew experience

Approximately

3million

Fostering Safe, Respectful,and Inclusive Workplaces
P29

We’ve adopted Global Brand Standards to foster safe, respectful and inclusive workplaces basedon Our Values.
<As of December 2023>

Introduction

McDonald s Sustainability Report 2023

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

10

Data

2023 Highlights

Community
Connection

Ronald McDonald House
Charities
P31

Support of Youth Sports
P32
54th McDonald's National Mini-Basketball
Tournament

Activities to Support Children’s
Growth & Safety
P33

Aroundtomers, local communities, and society.

8,350 teams nationwide

Number of Happy Meal sets sold under Childcare Support Program

RMHC® Support Donations from Customers

Takamadonomiya Cup All-Japan Rubber Baseball
McDonald’s Tournament

Number of restaurants participatingin “#110 House for Children”

As a member of the community, we aim for thehappiness of children and the smiles of our cus-

(front counter donation box, coupons with donations, and donations from mobile ordering)

Total amount approximately

154 million yen

All the donations made at our restaurants are donatedto Ronald McDonald House Charities Japan (RMHC) to
operate and build House facilities and related programs.

nationwide
10,000 teams
Approximately 410,000 children

Around491,904sets

2,365restaurants

789,850units

Turkey and Syria Earthquake Disaster Relief(donated by McDonald's Japan)

JFA Japan U-12 Football Championship

1,000,000yen

AroundEducation Support

nationwide
8,200 teams
Approximately 360,000children

Number of Distributed
Safety Whistles

P34
Food education support
Number of times classes or instruction held /number of students who attended the classes

597times 19,242students<As of December 2023>

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

11

We take climate action seriously—for theplanet and our future. To achieve our goalof “Net Zero Emissions by 2050,” we proactively engage in initiatives for global climatechange and environmental issues as a member of society to contribute to environmental conservation, considering and taking
actions to reduce the impact of our businessactivities on the environment.

We are taking climate action and working to change tomore sustainable packaging and Happy Meal®︎ toy materials.
We have set a goal to reduce greenhouse gas emissions by
50.4% compared to 2018 in our restaurants and office andreduce greenhouse gas emissions by 50.4% (in facilities,
logistics, and plastic packaging), and 16% (in beef <including
dairy cattle> and poultry) in our supply chain by the end of

Our Planet

2030.

Our Planet
12

Climate Action

14

Packaging, Happy Meal Toys & Food Waste

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

12

Data

Climate Action
We will constantly take climate
action in all business activities
related to McDonald’s operations.
We are implementing a variety of actions to reduce greenhouse gas emissions in our businessactivities with the goal of achieving net zero

Greenhouse gas emissions
Greenhouse gas emissions* from our offices and restaurants in 2018 and 2023 were as follows:*Emissions from electricity and gas

OfficesCompany-operated and franchised restaurants

Greenhouse gas emissions from our offices

Greenhouse gas emissions from our company-operated and franchised restaurants

emissions by 2050.

2023 291t
2018 435t-33.1%
compared to 20182023 331,622t-16.1%

compared to 20182018 395,344t<As of December 2023>

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

13

Carbon-Free Initiatives
Working toward net zero emissions by 2050, we have set a goal to reduce greenhouse gas emissions by 50.4% compared
to 2018 in our restaurants and offices and reduce greenhouse gas emissions by 50.4% (in facilities, logistics, and plastic
packaging), and 16% (in beef, including dairy cattle, and poultry) in our supply chain by the end of 2030. We are also striving to optimize our efforts to reduce our environmental impact, including energy management at our restaurants, the useof electricity generated from renewable energy sources, and the introduction of energy-saving equipment.

Introduction of Green Electricity
The use of electricity derived from renewable energy, such as
solar, hydroelectric, and geothermal power, is making progress.
In 2023, this was introduced to 134 restaurants in the Kansai area,
bringing the total to approximately 350 restaurants nationwide.

https://www.mcdonalds.
co.jp/sustainability/
environment/

Through this initiative, we aim to achieve zero CO2 emissions
from the use of lighting, air conditioning, and other electrical

Energy Conservationequipment in our restaurants. We are also in the process of testing solar panel installations to make effective use of restaurant
roofs. More focus will be placed on energy-saving measures andRestaurant staff implements inspection and clean-

the use of energy sources with a lower environmental impact.

ing of equipment according to a set schedule.
“Planned Maintenance System,” a calendar-based
system that allows any of the restaurant staff toperform maintenance, contributes to the maintenance of equipment efficiency and reduction ofenergy waste.

Signed Agreement to Promote the Use of Wood in Buildings
with Ministry of Agriculture, Forestry and Fisheries
In February 2023, we signed the Agreement to Promote the Use of Wood in
Buildings with the Forestry Agency of the Ministry of Agriculture, Forestry and
Fisheries to collaborate on the promotion of using domestic wood.

Initiatives in logistics
As initiatives to reduce energy consumption during the transportationof ingredients and materials, we areleveling and improving the efficiency ofdelivery operations in the supply chain
and adopting modal transportation ofmaterials.

Detail of Initiatives to Achieve the PlanUse a total of 5,550m3 of locally sourced woodover a three-year period, based on a plan of using
at least a certain amount of locally sourced wood
per restaurant.
Use legally harvested wood confirmed by theregistered wood-related business entities basedon the Clean Wood Act.
Actively communicate the significance and benefits of using wood.

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

14

Packaging, Happy Meal® Toys & Food Waste
We are advancing plastic reduction, the use of certified materials,
and recycling.
We have set a goal to replace all guest packaging with renewable, recycled, or certified
materials and move toward the use of sustainable materials including renewable, recycled,
or certified materials for all Happy Meal toys by
the end of 2025.

Plastic Reduction Initiatives
We are reducing the amount of plastic used inguest packaging.
All paper containers and packaging for customer
use are made of FSC®-certified paper and wood,
which are produced in consideration of forest
conservation and the local communities.
With support from our customers, we are working
on simplified packaging according to the situation and needs of our customers.

Transition to Paper Containers for Side Salads

https://www.mcdonalds.
co.jp/sustainability/
environment/

Starting in November 2023, side salads are served in paper containers. The
transition to sustainable material packaging is expected to reduce the use ofplastics by approximately 1,350 tons.
*Based on 2020 shipments

Introduction of Paper Straws andWooden Cutlery
Starting in October 2022, paper straws and wooden cutlery
are offered in our restaurants nationwide.
*Straws for children and selected products including McShake® are served with plastic straws

McDonald s Sustainability Report 2023

Our Planet

Introduction

Plastic Reduction and Recycling ofHappy Meal® Toys
We are transitioning to Happy Meal toys made of sustainable materials, including
renewable materials, and implementing “Happy Meal Toy Recycling” for plastic
toys, which is one of the largest programs of its kind in Japan.

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

15

Data

Food Waste

Food Recycling

We are working on the reduction of food waste and food recycling to convert inedible food into energy,
reduce food waste, and cut down greenhouse gas emissions from food waste.z

Food waste is converted to feed, fertilizer, andbiomass fuel according to the priority order
stipulated in the Food Recycling Law.

Food Waste Reduction

Kitchen waste is converted to feed, fertilizer,

Toys Made of Sustainable Materials“Made for You (MFY)” System

Tokyo.

The “Made for You” system, where products are madeour nationwide restaurants is mainly recy-

We introduced illustrated books and picture books to Happy Meal toys in 2018,

to order, was introduced in 2001. The system enables
restaurants to serve freshly made products quickly andswitched to FSC-certified paper packaging for toys in 2022, and introduced

also greatly reduces the amount of finished product waste

toys made of bioplastic materials in 2023.

compared to the time when products were prepared inadvance.

My Melody Kuromi©2023 SANRIO CO.,LTD.
APPROVAL NO. L638017

Toy Recycling[㎏/1 million yen in sales]<Paper toys>
Kotoba no Puzzle
Mojipittan™
©Bandai Namco
Entertainment Inc.

12

and recycling Happy Meal toys from nationwide restaurants.
Participation in recycling and seeing the green color trays used in our

scraps from some restaurants in Osaka Prefecture are converted into animal feed.
Some restaurants in Himeji City, Hyogo Pre-

into compost that is used by farmers in Kaga-

Period for introduction of“Made for You”

wa Prefecture to grow lettuce, which is in turnserved to customers.

10
8

Food recycling rate*

68.6%

6

Mixed feed*includes outbreak control based on a periodic
report for food recycling

20cled into chicken feed. In addition, french-fry

initiative. They convert used coffee grounds

4

Since 2018, Japan has been implementing an initiative for collecting

Almost all the used cooking oil (frying oil) fromfecture are participating in a circular recycling

Product Waste per 1-million-yen sales<Bioplastic toys>and methane gas at some restaurants in2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

restaurants provides an opportunity to think about the environment
from a young age.
Number of toys collected

Number of trays made from toy recycling

Total of approximately

Total of approximately

19million units

512,500

https://www.mcdonalds.co.jp/sustainability/environment/toy_recycling/

Initiatives to Reduce Leftover Food
We are working with our customers to reduce food waste due to leftovers. For
example, McDonald’s offers a variety of menu items and sizes, allowing customers to choose the amount they can eat. Also, sugar, milk, and other condiments for drinks are served after asking customers the amount they need.

Foodwaste rate

McDonald's
restaurantCollects andtransports coffee
grounds

Recycling plant

Delivered torestaurants

Lettuce farmer

Recycled
compost is sent
to farmers

2.3%*discarded edible food (kg) ÷food purchases (kg)<As of December 2023>

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Community Connection

Jobs, Inclusion & Empowerment

Data

16

McDonald’s prioritizes food safety above
everything else and to ensure this, we work
tirelessly to achieve the world’s best foodmanagement system in terms of safety,
quality, and hygiene.
These guidelines are shared among McDonald’s, franchisees, and suppliers engaged insourcing foods and materials and serving
meals. We will continue to build systems
and behave ethically and responsibly.

We are committed to serving safe, secure, and high-quality

Food Quality &Sourcing

meals and offer nutritionally balanced menu items throughour global supply chain. In addition, we will work on animal
health & welfare responsibly.

Food Quality & Sourcing
17

Food Safety

20 Our Responsibility Toward Children’s Health and Nutrition
21

Responsible Sourcing

22 Animal Health and Welfare

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

17

Data

Food Safety
We will continue to serve safe,
secure, and high-quality meals.
There is no end to food safety.
We are continuing our efforts to achieve thebest food management system in the world.

https://www.mcdonalds.co.jp/
sustainability/food/

Food Safety Strategy
From farm to customer, we work with suppliers and experts to serve products that meet a variety of standards.

Food Safety
Risk Management

Building a Food Safety Culture

The Supplier Quality Management System (SQMS) anducts, we provide training on the approach and values

our Distributors Quality Management Program (DQMP)

toward food safety to all of our staff. We are also working

are embedded from farm to customer to meet a variety ofwith individual suppliers to foster a food safety culture andrigorous protocols and reduce a variety of food safety risks.

build a more robust system.

GAP (Good Agricultural Practice)

DQMP

Percentage of lettuce producers with
Global G.A.P. Plus Add-on certification

100%

As a business that provides safe and secure food prod-(Distributors Quality Management
Program)Number and percentage of distribution centers that have been audited by a third party
and met our standards

15 locations

100%

SQMS*

Food Safety Visits to Restaurants

Percentage of suppliers that meet SQMS
requirements

Number and percentage of restaurants that
met audit requirements conducted by external inspection companies

100%*A more robust food safety management system that consists of McDonald’s expectations, based on GFSI benchmark

PLACEHOLDER

Approximately

3,000

100%
<As of December 2023>

McDonald s Sustainability Report 2023

Introduction

Our Planet

Quality Assurance System—From Farm to Customer
The products we serve to customers are managed by our own quality and food safety management system
based on international standards, such as the GFSI certification level,
which are embedded from farm to processing plants, logistics, and food preparation at our restaurants.
PACE, HACCP, and other sanitation management methods are adopted by our restaurants to manage product safety.

Community Connection

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

Food Manufacturing
Process Management

McDonald’s additional
quality standards
Traceability System
Crisis Control
Product Inspection Program, etc.

The food production process is managed by McDonald’s
Supplier Quality Management System (SQMS), a foodsafety management system in line with the Global Food

Fundamental Principles for
SuppliersGAP Good Agriculture
Practice

To ensure responsible sourcing, it is essential to

In 2010, we introduced the McDonald’s-GAP cer-

identify suppliers who have the right technology,tification, and as of 2023, all lettuce producers aremanagement, and social responsibility to produce

McDonald’s-GAP certified. GAP requires meet-high-quality food. To that end, we require our sup-ing more than 100 items for production process

pliers to comply with the Supplier Code of Conduct.

management, such as the investigation of soil andThis code of conduct contains fundamental princi-

water used for production, proper field manage-

ples for partnering with McDonald’s and stipulatesment, and handling of agricultural chemicals. In

relevant laws and regulations, human rights, work

2022, we introduced the Global G.A.P. Plus Add-on,

environment, environmental conservation, and busi-

a combination of Global G.A.P.* and McDonald's

ness integrity. Details regarding the code of conduct

GAP, to further ensure food safety.

are specified in the “Suppliers Workplace Account-

18

Data

Safety Initiatives (GFSI) founded by relevant laws and

GFSI approval scheme
GMP/HACCP

regulations including McDonald’s additional quality standards. We conduct various tests and evaluations including sensory evaluation, and microbiological and physiochemical test analysis to ensure quality assurance.

Traceability

FSSC22000/BRC/
IFS/SQF etc.

Relevant laws, regulations, andrequirements

We have a traceability system with the ability to trace back the production history
from finished goods to raw materials. This will enable us to quickly identify root causes as well as implement countermeasures in case of an incident.

*International Standards for Good Agricultural Practices

ability Program (SWA),” and suppliers are expected to
implement and maintain this program.

Supplier Code of Conduct
Compliancewith Relevant
Laws and
Regulations

Human
RightsEnvironWork
mentalEnvironment Conservation

Business
Integrity

Suppliers Workplace Accountability
Program (SWA)
An audit program to ensure the promotion andexecution of the code of conduct

Farm

Processing

Logistics/Warehouse

Restaurant

Global G.A.P. *1
Plus Add-on

SQMS *2

DQMP *3

PACE *4

Farm assessment

HACCP (factories) *5

HACCP (logistics)

HACCP (restaurants)

Water quality control

GMP

GWP/GDPGMP

Pesticide, fertilizer management

Product inspection program

QIP (Quality Inspection Program)

SSOP

etc.

etc.

etc.

Confirm the effectiveness of the system through an audit program*1 Global G.A.P. Plus Add-on: Good Agriculture Practice *2 SQMS: Supplier Quality Management System *3 DQMP: Distributer Quality Management Program *4 PACE: Performance And Customer Excellence to improve operations and provide consulting platform *5 HACCP: Hazard Analysis and Critical Control Point

etc.

McDonald s Sustainability Report 2023

Introduction

Our Planet

Health and Safety in Our Restaurants
McDonald’s takes hygiene management seriously in all areas of our restaurants to ensure that our customers
can visit McDonald’s with peace of mind.

Actions that Support Safety and Security

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

Use of Digital Food Safety forCentralized Management and Data Storage
As part of our focused approach to food safety and security, each of our nationwide restaurants is equipped witha tablet installed with the “Digital Food Safety System” toconduct food safety checks daily.

We take seriously the responsibility to ensure

We also provide learning opportunities throughMore than 30 items are checked efficiently and accu-

health and safety in our restaurants from man-various manuals and e-learning programs to en-

rately through the use of the tablet device and Blue-

agement to preparation and selling of food. In

sure that our staff understand and practice food

tooth-ready thermometers. This includes food tem-

addition to temperature control of food materials

safety correctly. In addition, audits are conducted

perature measurement, health and safety management,

and cooked foods, we complete a variety of daily

periodically by a third-party professional institu-

maintenance of a clean kitchen environment, cooking

safety tasks from monitoring the temperature oftion to ensure that health and safety manage-

procedures, and verification of staff performance.

food materials as well as cooked foods to water

ment is properly implemented at our restaurants.

An alert message appears if there is a problem, prompts

quality checks and the degradation of frying oil.
https://www.mcdonalds.co.jp/sustainability/food/sanitation/

staff to pursue the cause, and suggests remeasurement
or other solutions on the spot to ensure quick action.

Hand Washing
Our crew members implement
thorough hand washing every hourat minimum, from fingertips toelbows.

OfficeFull Use of
Alcohol Disinfectants
Alcohol disinfectants are used in
all frequently used areas such as
doorknobs and seating areas.

Field
RGM

Cleaning and Disinfection of
Cooking Utensils
Cooking utensils are cleaned andsanitized regularly to ensure thatthey are always clean before use.

Community Connection

Restaurant
Related
Dept.

Consultant-Data Entry-Save

Managers
Director

Data

19

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

20

Our Responsibility Toward Children’s Health and Nutrition
To support the healthy growth ofchildren, we offer an extensive lineup of menu items to choose from.
We listen to our customers and constantly

Serving an Even Saferand More Secure Happy Meal® Set
We serve around 100 million Happy Meal sets a year.
This comes with responsibility, and we are working to serve an even safer and more secure
Happy Meal set.

change in step with the times, evaluating ourmenu to identify ways to evolve our offerings
while maintaining the great taste people know
and love. We provide a variety of choices tocustomers and bring families together to share
moments and create lasting memories.

Happy Meal Set Guidelines
1 Offer nutritionally balanced

meals.

2 Limit the use of food additives.
3 Be transparent with Happy

Meal nutrition information.

4 Market responsibly.
5 Consider nutritional balance inmarketingDisclosing
Nutritional
Information
Allergy, nutrition, and country of origin
information for all products including
Happy Meal sets are available on our
official website and official app.
https://www.mcdonalds.co.jp/
sustainability/food/allergy_
Nutrition/

Consideration for
Nutritional Balance
In addition to McFry®, the Happy

Removal of
Artificial Flavors
and Added Colors

Meal set side menu also includes aHappy Meal sets do not containchoice of Edamame Corn or a side

artificial flavors or colors. We aresalad. Nutritionally balanced choic-

also working on reducing artifi-

es are available according to child’scial preservatives.

growth and dietary needs.

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

21

Data

Responsible Sourcing
We are considering the global
environment, biodiversity, andthe people who work in our supply
chain.
Our supply chain spans various countries andSustainable Sourcing of Food and Materials
We are advancing sustainable sourcing of food materials in consideration of forests, water resources, and ecosystems.

https://www.mcdonalds.co.jp/
sustainability/food/industries. Together with our suppliers and producers, we conduct responsible sourcing.

FSC® Certified

MSC Certified

All paper containers, packaging,tray liners, and wooden cutlery
provided to customers at our
restaurants are made from
FSC-certified paper and wood.

Whitefish used in our Filet-OFish® is MSC certified and comesfrom sustainable, environmentally friendly fisheries for the natural
Alaskan pollock.

(Forest Conservation)

For more information, please visit the FSC Japan website(Fishery Resource Conservation)

For more information, please visit the MSC
Japan website

Rainforest Alliance Certified(Sustainable Agriculture)

The coffee we serve to ourcustomers is 100% grownby farms that have obtained
Rainforest Alliance Certification to conserve forestsand ecosystems and provide
workers with appropriate
working conditions.
For more information, please visit the Rainforest Alliance website

Beef
We are aiming toward the goalof sourcing beef from deforestation-free supply chains. Globally,
McDonald’s achieved 98.5% of
this goal.

RSPO Certified(Sustainable Palm Oil Procurement)

The production of palm oil without
taking into consideration theenvironment and local communities can lead to a large-scale lossof tropical rainforests and a varietyof species.
We use palm oil certified sustainable by the Roundtable on Sustainable Palm Oil (RSPO).
Soy
With regard to soy, a standard
ingredient in chicken feed,
we purchase credits from theRoundtable on Responsible Soy(RTRS) certification.

PLACEHOLDER

MSC - C - 57384

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

22

Animal Health & Welfare
We are committed to sourcing
with more focus on animal healthand welfare across the globe.
Animals raised properly
throughout their lives are
essential for providing safeand high-quality food and thisAnimal Health & Welfare
McDonald’s requires its meat processing plants of food material origin to comply with Animal Health & Welfare (AHW),
HACCP/GMP, BSE Firewall, Supplier Workplace Environmental Management Program (SWA), and other requirements. McDonald’s, suppliers, and auditing companies work together to conduct audits to ensure that these requirements are met.
AHW audits ensure that cattle/chicken/pig are slaughtered (meat processing) in a humane manner according to theirnature and slaughter process. McDonald’s suppliers can only source meat from meat processing plants that meet thecriteria of these audits and are placed on the Approved Supplier List (ASL) as an approved supplier. The beef, chicken, andpork used by McDonald’s Japan are sourced from a supply chain that meets McDonald’s sourcing standards.

cannot be achieved without
the understanding and supportof our suppliers and producers.
Click here to learn more about Global
McDonald s Animal Health & Welfare
initiatives.

Beef
From cattle raising to meat processing, we make the health and welfare ofanimals a priority. The use of antibiotics
for growth-promoting purposes has beenbanned in products for McDonald’s Japan.

Chicken
We are committed to sourcing chicken
raised in a better environment. The use ofantibiotics for growth-promoting purposes has been banned in products for
McDonald’s Japan.

Pork
We are committed to sourcing pigs raised
in a better environment.

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

23

We believe that People are the key to a sustainable future.
We are giving full focus on a safe and inclusive workplace where everyone can growand play an active role.

People Vision

People Promise

Striving to become theemployer of choice in every
town around the world

We value you, your growth,and your contributions

We stand behind the words of Ray A. Kroc, founder of McDonald’s, who said, “We are not a hamburger business serving
people, but we are a people business serving hamburgers.”
At McDonald’s, we provide growth opportunities and continue

Jobs, Inclusion& Empowerment

to develop a workplace where employees and crew members
from different backgrounds can help each other to grow andadvance and promote a work style and environment in whichanyone can play an active role. We will continue to engage inactions that further brighten the future of our crew and contribute to the overall society.

Jobs, Inclusion & Empowerment
24

Diversity, Equity & Inclusion (DE&I)

27

Talent Development and Career

29 Fostering Safe, Respectful, and Inclusive Workplaces

McDonald s Sustainability Report 2023

Introduction

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Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

24

Diversity Equity & Inclusion (DE&I)
Under Our Values, we foster an inclusive environment where the power of diversity can be unleashed.
Inclusion is the DNA of McDonald’s
and we are committed to furthering
our efforts.
McDonald’s welcomes a diverse
customer base, and our teams alsoneed to be diverse to meet the needsof diverse customers and adapt to
rapidly changing times. To that end,
we will continue to provide a wide
range of employment opportunities
regardless of gender, age, or nationality, while striving to further enhance
individual engagement and create arewarding workplace.

The realization of DE&I goals
A diverse workforce has different workstyles and support is needed for them to work and grow.
At McDonald’s, we listen to our staff, organize and review the system, and strive to make the system more staff friendly.
Seminars and in-house workshops are held to facilitate the understanding of staff who use the system, their colleagues,
and supervisors. Through these efforts, we provide an opportunity for all staff to think about “what I can do to build an
inclusive workplace.”

Diverse Teams
https://www.mcdonalds.co.jp/
sustainability/people/

 pen Door! Team to drive Diversity,
O
Equity & Inclusion

ments at McDonald’s partners with in-house
departments, universities, other businesses,

The Open Door! Team was organized toand relevant organizations to drive DE&I.

support the project of creating a workplace

McDonald’s supports the building of an ‘open

where a diverse workforce can work anddoor’ workplace to respect individuality, shungrow. Sponsored by top leaders, the teamisolation, and provide two-way support tomade up of volunteers from different depart-advance DE&I.

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

25

Data

Diverse Teams
A diverse crew of different genders, ages, andnationalities work in our restaurants nationwide.
We promote a friendly workplace where everyone feels rewarded andprovide work opportunities to many people.

Total number of crew members

Approximately

Youth

200,000*Figures include company-operated and franchised
restaurants

Seniors

We are proactively providing work andSeniors have gained a variety of knowledge andgrowth opportunities to youth. Approxi-

skills in society, and we believe that they are amately 130,000 crew members or more

source of great strength at our workplace. Our

than 60% under the age of 24 are work-crew members of different ages and backgrounds,

ing at our restaurants. Work experience

including youth and seniors, are helping one an-with people from diverse backgrounds

other and working in their own way and style.

presents a highly valuable experience foryouth soon entering the workforce. Workat McDonald’s restaurants and the curriculum offered by Hamburger University

Senior Crew (60+)

Approximately

11,500100 countries work at McDonald’s

members. Everyone working at McDon-

restaurants and we are develop-

ald’s are “buddies” and team members,

ing a workplace where they cansharing the joy of working together

put their strengths to work byand creating a workplace where they

At McDonald’s, 1 out of every 5 crew are homemak-

including support items such as

can shine. We are developing a friendly

ers and we provide a friendly workplace for them.

multi-language tablets. We will

workplace for everyone through the use

For example, they can work as little as 2 hours acontinue to implement variousof a training system that enables each

week, and shifts are adjusted on a weekly basis,

initiatives to offer working op-

person to steadily make progress andallowing them the flexibility to work according

portunities to everyone living in

adopting a universal design for orienta-

to their family's needs including housework andJapan.

tions and people development kits.

such as teamwork and leadership. Thesefuture and prove to be the driving force for youth to play an active role in society.
Assessments and classes are arranged for student crew members to improvetheir fundamental skills as responsible adults. A total of approximately 3 million
former part-timers at McDonald’s are now playing an active role in society.
In addition, we have partnered with NPOs, boards of education, and other organizations to launch an internship program to drive youth employment. We willcontinue to support youth, who are the hope of our future.
Number of crew member aged 24 or under

Approximately

130,000

Hire Crew with Disabilities
People with disabilities also work as crew

enable them to develop on-the-job skills
portable skills serve them well in theForeign Nationals
Crew members from more thanHomemakers (male & female)childcare. Anyone, regardless of age, can work at
McDonald’s and this allows people to work overmany years, including those who quit work andreturn to the workforce after raising children.

Number of non-Japanese crew

Approximately

18,000

Employees with disabilities

2.3 %*Percentage of company-operated
restaurants<As of December 2023>

McDonald s Sustainability Report 2023

Promoting Women

Introduction

Our Planet

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

Community Connection

Data

26

Mechanisms and programs to support
flexible work styles

Promoting male involvement in childcare

such as career support, networking, and leader-

We are enhancing programs that support various ways of work to realize a work-life balance that suits

can apply for childcare leave support programs. This includes

ship development for female employees.

each employee and their life events, encouraging them to make use of such programs.

The Open Doors! Team takes the lead in promoting

We believe that male involvement in childcare is essential. To
that end, we are developing a workplace where eligible staff

women to play an active role through activities

OPEN DOOR! Woman’s Café
We provide an opportunity to hold free and open
communication for networking among female
staff, address career concerns, and enhance healthliteracy for women.

Work Arrangement

the setup of a contact for inquiries and the distribution of theChildcare Leave Support Booklet to introduce the program,and hear from staff who took

Flextime and telecommuting work arrangements are provided for our office staff and a variable working

childcare leave and their super-hour system is available for restaurant staff, enabling them to adjust working hours and holidays duringvisors. We are also expanding

busy work periods and for personal activities to maintain work-life balance. In addition, flextime work ar-

our support system for work col-rangements are available for Restaurant General Managers to add more flexibility to their work schedule.

leagues and supervisors of staff
who are using the program.

Local Salaried Employee Program (company-operated restaurants)
In 2021, a local salaried employee program was introduced to promote a flexible way of work. This enables our people to advance their careers within areas that are an easy commute and according to theirlifestyles.

Support RGM Program (company-operated restaurants)
When a Restaurant General Manager takes maternity leave, childcare leave, or nursing care, the support

Male childcare leave rate

29 %*Percentage of full-time & company-operated
restaurant staff in 2023

RGM assists in restaurant operations. This arrangement allows Restaurant General Managers to maintain a proper work-life balance.

Support childbirth, childcare, and nursing care
We are developing a workplace that includes a variety of supportive programs so that our people canmake full use of their strengths and play an active role without giving up career advancement in theevent of changes in life, such as childbirth, childcare, and nursing care. For example, they can apply for
the Reduced Work Hours Program to work shorter hours for childcare and nursing care, depending on
their individual needs.
Turnover rate

6.2 %Total monthly average overtime
hours among full-time employees

18.4 hours

Paid leave rate

57.1 %

Return to work rate
after parental leave

100 %*All figures are employees of company-operated restaurants (employees of McDonald’s Company (Japan), Ltd.)<As of December 2023>

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

27

Talent Development & Career
We strive to be a “Feel Good Place
to Work,” a rewarding workplace
where everyone working at McDonald’s enjoys many “Feel-Good”
moments.
To realize this, we believe it is important for each

People at McDonald’sDiverse people of different generations, nationalities, and backgrounds are working at McDonald’s in a wide variety of
workplaces.
Crew members who are the strength of restaurant operations, local salaried employees, new graduates, and employees
working in the support office departments have different roles, but they all share Our Purpose, Our Mission, and Our Values, and have a high level of commitment to putting them into practice and realizing them.

Talent Management

Educational Institution (Hamburger University)

recognize that working at McDonald’s provides

To ensure continuous people development, we

Hamburger University is a professional educational institution thatan invaluable experience, this will lead to higher

implement a strategic positioning of our people,

provides learning for all staff to ensure the sustainable growth ofjob rotation, and others to develop successors.

McDonald’s. This facility is located in only 9 countries and one ofindividual to harness their potential, work withpride, and recognize self-growth. When our staff

customer satisfaction and serve as a foundation
for business growth.

them is in Tokyo. Hamburger University in Japan was established

ALL JAPAN
CREW CONTEST(AJCC)
https://www.mcdonalds.
co.jp/sustainability/
people/Since 1977, McDonald’s has been
holding AJCC every year with thehope of instilling pride amongcrew members. AJCC is truly the
pinnacle for restaurants and crew
members, which is held every
year starting in May, followed bynational competitions in December. AJCC contributes to enhanced skills and service, stronger motivation and teamwork,and spurs the growth of individualcrew members.

in June 1971, one month before the opening of the 1st McDonald’s restaurant in Japan at Mitsukoshi in Ginza. This indicates thecompany’s focus on people development as a top priority.
Each year, many employees and crew members utilize training
tools and attend classes to study leadership, team building, andmanagement. These lifelong skills are useful in a variety of positions and jobs.
Number of employees and crew members taking classes
at Hamburger University a year

Approximately

14,000https://www.mcdonalds.co.jp/sustainability/
people/hamburger_university/*As of December 2023

McDonald s Sustainability Report 2023

Introduction

Our Planet

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

Career Development

Compensation System

We believe that providing support to take on challenges and grow at the workplace is important to develop competent leaders, encourage
individual growth, and foster people to support our future business. Instead of providing a predetermined career path, we offer “Up to You”*
career building program where our people can freely choose their dreams and act on their own to ensure satisfying work with a rewarding
and fulfilling life.

Our compensation system complies with

*McDonald’s policy describing the diversity of career choices and growth based on individual efforts

Diverse Career Choices
McDonald’s offers a wide variety of career

Franchise staff

Franchise Owner Operator

programs so that people can build a careerthat suits their lifestyle. Systems and programs
Transfer job posting system

include an internal job posting system, a job
posting system for transfer to a franchisee com-

Support system to become an
independent owner operator

pany, and a support system to become an in-

Field staff

dependent owner operator. Each staff receives
Restaurant staff

a Career Book to provide a wider viewpoint andInternal job
opening system, etc.

information on these job opportunities. The

Office staff

number of employees taking on new challenges
is increasing every year.

McDonald’s Japan

Community Connection

Data

28

A Workplace that
Enables Growth

McDonald’s global policies.

Working in a restaurant as a crew with work

Compensation levels are set based oncolleagues offers everyone an opportunity

individual duties, roles and responsibilities,

to develop skills such as communication,and market comparisons, so there are nocooperation, leadership, and other skills thatdifferences in wages based on gender,

help individuals flourish at different life stag-age, or other factors within the same job.

es. Also, our proprietary training program

As part of our focus on expanding the con-enables our staff to add knowledge to thetinuous growth and contribution of individ-

experience they gained. Working as a crew

ual staff, persons delivering strong perfor-

offers a unique opportunity to develop thesemance are rewarded with increased pay.

skills and is a key for assisting former crew

Opportunities for pay increases are provid-

members to play an active role in a wide

ed at least once a year for all employment

range of stages throughout their careers.

categories. In addition, we research social

Office staff can also enhance their abili-

conditions and compensation of competi-ties through work and attend Hamburger

tors, maintain competitive pay, and contin-

University classes or take elective training

ue with active hiring to ensure sustainable

to develop portable skills that are usefulbusiness growth.

throughout life.

Internal Job Posting System

Career Challenge Job Posting Program

A variety of open departments and positions are shared with the employees and suitable candidates

Designed as one of the initiatives to support young

are selected from among the applicants. Anyone who meets the eligibility and terms for the position

employees to proactively develop their own careers,

can apply. We provide opportunities for our staff to take up the challenge of aiming for and achieving

the job posting program began in 2022 for compa-

their career goals and working on supporting individuals’ career advancement to ensure having the rightny-operated restaurant employees who joined thepeople in the right place. In addition, in 2022, we introduced a Career Challenge Job Posting program forcompany as new graduates within the past threecompany-operated restaurant employees who joined the company as new graduates within the past

years. The program enables the selected employees

three years. This program, which is designed to broaden their horizons and help them grow as they work

to broaden their career outlook and grow as theyin the office, is used as a new career path for young employees in their career development.

work at the restaurant support office for 2 years.

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

29

Fostering Safe, Respectful, and Inclusive Workplaces
McDonald’s has introduced Global
Brand Standards to foster an inclusive culture where our staff andcustomers feel safe, and harassment or discrimination of any kind
is not tolerated.
All McDonald’s restaurants - more than 40,000 locations - around the globe are expected to implement these standards for restaurant operation.

Global Brand Standards
Global Brand Standards focus on four key areas: “Preventing harassment, discrimination, and retaliation,” “Preventing
workplace violence,” “Listening through restaurant employee feedback,” and “Protecting employee health and safety.”
We are committed to providing safe, respectful, and inclusive workplaces for our staff.
It is important to implement these standards anytime and anywhere by each and every staff.
The Brand Standards Playbook has been published to describe details of these standards and is distributed to all staff.

Orientation and training to prevent harassment, discrimination, and retaliation are implemented, and processes
and programs, such as the Compliance Hotline, are inplace to report harassment and discrimination. We areinterested in the issues and opinions of our staff, which is
why we conduct a staff survey and stress check annuallyfor all staff to always provide a safe and secure workplace

https://www.mcdonalds.co.jp/
sustainability/people/

for everyone. In addition, a workplace safety check is conducted periodically and issues that cannot be addressedby the restaurant or department alone are shared with
relevant departments. Then, the Safety and Health Committee considers and implements specific measures.

Respecting Human Rights
We respect human rights and give careful attention to avoid any negative impact on the human rights of others, and act
with integrity to address any human rights violations that may occur. We strive to become an example of a good corporate
citizen through respect for human rights and a broader commitment to sustainability.
Please visit our website for more information:
https://www.mcd-holdings.co.jp/en/humanrights/

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Community Connection

Jobs, Inclusion & Empowerment

Data

30

“We have an obligation to give back to thecommunity that has always supported us.”Everything we do originates from thesewords of Ray A. Kroc, the founder of McDonald’s. As a member of the community, we aim
for the happiness of children and the smilesof our customers, local communities, andsociety.

We engage in initiatives including the fostering of a charity
culture with the aim of providing mutual aid across society, activities to nurture children’s “nutrition,” “bodies,” and“minds,” creating a safe and secure neighborhood, andCommunity
Connection

other community contribution activities.

Community Connection
31

Ronald McDonald House

32 Support of Youth Sports
33 Activities to Support Children’s Growth & Safety
34 Education Support

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Ronald McDonald House

Tokyo Marathon 2023

We are committed to fostering a charity culture and supporting the Ronald McDonald House (RMH) with the aim of engaging in activities that put smiles on the faces of the children and their families who stay at the house.

Approximately 1,200 “Team RMHC” runners

Community Connection

Data

31

participated in the Tokyo Marathon 2023 inMarch 2023 to benefit RMHC and the runners
were supported by a cheering group made ofhttps://www.mcdonalds.
co.jp/sustainability/local/
dmhcj/

Ronald McDonald House (RMH)
RMH facilities are built adjacent to hospitals to provide a “home away from home”
and help families with sick or injured children stay together. There are 12 locations inJapan as of December 2023. Since the establishment of Ronald McDonald House
Charities Japan, the operator of RMH, McDonald’s Japan has continued to provide
support to this day, including setting up donation boxes at nationwide restaurants,
offering coupons with donations, and donations from our app when ordering toprovide easy access for customers to engage in charity activities.
RMHC Support Donations from Customers (2023)(front counter donation box, coupons with donations,and donations from app while ordering)

Total amount Approximately

154.07million yen

All the donations made at our restaurants are donated to Ronald McDonald
House Charities Japan to operate and build House facilities.

400 McDonald’s staff and business partners.

In honor of children of the same age who are“Blue Mac Day”
(McHappy Day)

fighting serious illnesses, youth baseball players,
RMHC is a donor recipient organization for the Tokyo Marathon 2023 Charity.

McDonald’s Japan donates 50 yen

held at prefectural youth baseball tournaments

Meal® that is sold.

and events throughout Japan.

In Japan, “Blue Mac Day” (McHappy©TOKYO MARATHON FOUNDATION

Day) was held on Sunday, Novem-

rant was decorated differently
with a blue theme, as we asked for
RMHC charity support, and many
people responded as a result.

Professional Baseball RMHC
Cheering GameIn December 2023, the Ronald McDonald Family Room opened to offer
a place of rest for body and mind for families accompanying children
hospitalized at Sakakibara Heart Institute (Tokyo). This facility allows
parents to take a moment away from the medical area to have a lightmeal and rest while staying close to their children.

One Million Classical LiveMusic can move hearts, and to share this with

Four professional baseball “RMHC Support

people of all ages from infants to the elderly,Games” were arranged in

we arranged a series of concerts called “One2023 for RMHC fundraising.

Million Classical Live” and conducted RMHC

We worked with the base-fundraising at AEON Malls across Japan.

ball teams located near theHouse for the first-pitch

Ronald McDonald Family Roomsupporters showed their support by wearing red
tournament. “Smile Socks Donations” are also

Charities Japan for every Happyand blue paper bags, each restau-

youth football players, their parents, and teamand white striped “Smile Socks” at the national

to the Ronald McDonald Houseber 19, 2023. Using blue drink cups

Smile Socks Donation

ceremony and fundraisingat the ballpark.

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Support of Youth Sports

Youth Football

We focus on promoting the healthy growth of children’s minds andbodies through our support for youths enjoying sports.

JFA All Japan U-12 Football Championship

32

Data

Since 2011, McDonald’s has been supporting one of the largest youth football
tournaments in Japan where players aged 12 or younger from around the country

https://www.mcdonalds.
co.jp/sustainability/local/

compete and many J-League and Japan National Team players have been produced. In 2023 we continued our support, including the distribution of the Football
Player booklet to 360,000 registered team players.
JFA All Japan U-12 Football Championship

Basketball

Around8,200

Mini-basketball is familiar to elementary school children of bothgenders. The 54th McDonald’s National Mini Basketball Tournament for elementary school-age children was held in 2023, theyear when we became a sponsor. We will support children who
enjoy playing basketball.
54th McDonald’s National Mini Basketball Tournament

Around8,350 teams nationwide

360,000 children
supported*FY2023The “McDonald’s Friendly Cup” is a tournament for the 40 teams that lost the
chance to become one of the last eight in the JFA All Japan U-12 Soccer Cham-

Takamadonomiya Cup
All Japan Rubber Baseball McDonald’s Tournament
Known as the elementary school equivalent of “Koshien” , McDonald’s
Japan has been supporting this tournament since 1986. The 2023 national
tournament was held in the Meiji Jingu baseball stadium, with all teams
marching in. Koji Uehara, a former Major League Baseball player also appeared at the first-pitch ceremony and sent a cheer of encouragement to
the players. In 2023, we continued our support, including the distribution of
the Baseball Player booklet to 410,000 registered team players.
Takamadonomiya Cup All Japan Rubber Baseball
McDonald’s Tournament

10,000 teams nationwide

Approximately

410,000 children supported

Approximately

McDonald’s Friendly Cup

BaseballAroundteams
nationwide*FY2023

pionships. Starting in 2019, this event is being held in hopes of creating opportunities for players who, regrettably, did not have the chance to compete in thenational tournament and forge deeper ties with more friends. The JFA (Japan
Football Association) has given special permission for the players to wear Smile
Socks in the Friendly Cup as a sign of support for sick children.

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Activities to Support Children’s
Growth & Safety

Children’s Canteen

Community involvement means supporting and engaging in
local community programs and creating a safe and secure neighborhood.

collaboration with support groups.

https://www.mcdonalds.co.jp/
sustainability/local/

Childcare
McDonald’s supports the Childcare
Support Passport Program, promoted by both the Japanese government and local municipalities.
Our Cheeseburger Happy Meal®
set is offered at a special pricewhenever the Childcare Support Passport, issued by individual prefectures, is presented upon ordering.
Number of Happy Meal sets sold under theChildcare Support Passport Program (2023)

491,904 sets

Data

33

As a member of the community, in certain areas, we provide Children's Canteen support upon request and offer other assistance in

Safety and Security Initiatives

Disaster Relief Donation

To protect our children in local communities, we part-affected by the disaster through fundraising at our restaurants andner with local police departments to promote the “#110contributions.

House for Children,” where they can freely run into
McDonald’s restaurants for safety in case of danger or
trouble. During the National Traffic Safety Campaign
period and other times, we collaborate with local police

In the event of a major disaster, we provide relief and support to those

Turkey-Syria Earthquake (2023)
Donation from McDonald’s Japan

1,000,000 yen

headquarters to hold crime prevention classes and traffic safety classes in addition to producing videos about
traffic safety, community safety, and security, and callingout to the community through digital signage in our restaurants. As part of ourcommunity watchdog activities, delivery bikes of McDonald’s restaurants in the
Hyogo Prefecture are operating as “#110 Bike for Children.” Also, as we do every
year, safety whistles were distributed in 2023 to new first-year elementary school
students through local education boards and police headquarters.

McDonald's Radio University®
“McDonald’s Radio University,” in which immigrants and refugees are invited to speak as“professors,” was organized and played “on air”
at McDonald’s restaurants. In 2023, this radio
program was played at some restaurants in

Number of restaurants participating in“#110 House for Children”

2,365 restaurants*As of December 2023

Tokyo and all restaurants in the Tottori Prefecture. Led by PortB and centered on director &artist Akira Takayama and art galleries/museums, this initiative offers learning and discovery along with meal enjoyment.

Number of Distributed Safety Whistles (2023)

789,850 pieces

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Education Support
We offer a wide range of learning opportunities to bring bigger smiles on the faces of children.

Hello Ronald!

https://www.mcdonalds.co.jp/sustainability/
local/food_education_support/

We offer programs at nurseryschools and elementary schools
to teach children about rules andFood Educationmanners necessary for daily life. In
addition to traffic safety and crime

We want children to enjoy eating, obtain proper knowledge, and develop

prevention, SDGs were added ingood eating habits. Since 2005, McDonald’s has been providing support to2022. The programs can be en-elementary schools’ food education classes with the use of a digital teach-joyed either in person or online

ing tool called “Shokuiku no Jikan” developed by McDonald’s.

together with Ronald McDonald in“Shokuiku no Jikan + (Plus)” teaching tool contains seven basics about foods

a fun and easy way.

such as correct hand washing, hygiene control, and food waste including
information about the SDGs (Sustainable Development Goals), which arealso available on our official website and utilized at elementary schools
throughout Japan.

Visitation Classes
on SDGs

In 2023, McDonald’s received the Judges’ Special Award at the 7th Nutrition
Education Activity Awards conducted by the Ministry of Agriculture, Forestry
and Fisheries of Japan for supporting food education using
our original “Shokuiku no Jikan + (Plus)” digital teachingtool. Further, to provide an opportunity for families to learn

We want children to have an oppor-

about food, a special website is set up during the summer

tunity to think “What can I do?” forvacation period to offer a template for a summer research

the planet and society, and with thatproject, a lifestyle picture diary, and it offers videos of crafts

in mind, we set up visitation classes

using packaging.

on the SDGs in selected locations forupper elementary school students.

Supporting food education using our original “Shokuiku no Jikan + (Plus)” teaching materials (2023)
Number of times classes and instruction wereconducted using our teaching materials

Total of

597times

introduce McDonald’s initiatives in

Number of students
who attended the classes

Total of19,242 students

Our staff working at nearby restaurants
environmental conservation, followed
by a class presentation by students on*Number of findings as of December 2023

“What we can do for the planet.”

Data

34

McDonald s Sustainability Report 2023

Introduction

Our Planet

Data

Community Connection

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

352023 DATA
Our Planet

Environmental Data Trends
Energy Consumption & CO2 Emissions

Waste Trends
Company-wide food andpackages waste amountNationwide energy usage per type
Electricity

64,664-0.9% YoY

Gas(city gas equivalent)million kWh/
year

29.26

-15.7% YoY

m3/year

Water

Company-wide

4.847+2.4% YoY

Food and Packing waste amountper 1 million yen sales

million tons/year

160.1

thousandtons/year

Company-wide

Food

49.9

Energy usage per 1,000 customers per type

thousandtons/year-1.8%YoY

Food recycle rate*
Electricity

441.3-0.6% YoY

Gas (city gas equivalent)

kWh per 1,000
customers

19.9-15.4% YoY

m3 per 1,000
customers

Water

3.3

t per 1,000
customers+2.7% YoY

8.1%

201,453kl/year-3.9% YoY

-7.9% YoY

0.2337-3.6% YoY

kl/1,000
cash register count*unit denominator: thousand cash register countCO2 emissions

331,622

Basic unit crude oil equivalentt-CO2/year

108.7

t-CO2/restaurant-8.9% YoY

31.1%

kg/million yen-8.8%YoY

Food

65.4

kg/million yen-9.5%YoY

Target for fast food restaurants to contain foodwaste based on the Food Recycling Law= Below 83.3kg per 1 million yen in sales*includes outbreak control based on a periodic report for food recycling

41.4

Crude oil equivalent

Percentage offood waste+3.6%YoY

Paper

Overall energy usage and CO2 emissions
Percentage of renewable energy

68.6%

210.0

-0.7%YoY

Paper

thousandtons/year-1.0%YoY

Plastic

6.0

54.4

kg/million yen-8.6%YoY

Plastic

thousandtons/year-10.4%YoY

Wrapping and others

62.8

thousandtons/year

7.8

kg/million yen-18.5%YoY

Wrapping and others+0.3%YoY

82.4

kg/million yen-7.3%YoY

McDonald s Sustainability Report 2023

Introduction

Our Planet

Data

Community Connection

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

36

Our Planet

Environmental Data Trends
Company-wide

Restaurant average

380,000

150,000

360,000

100,000

340,000

50,000320,000

0

2019

2020

2021

2022

Trends in Waste
Plastic

Wrapping and others

40

120

20

110

0

300,000

Food waste per 1 million yen in sales[kg per 1 million yen in sales]

120
90
60
30
2020

130

2019

2020

2021

2021

2022

2023

2023

0.60

0.25

0.55

0.20

0.50

0.15

0.45

0.10

0.40

0.05

0.35

0.00

100

Food Waste & Food Waste per 1 million yen
in salesFood recycling rate
70

95
90

65

85
80

60

75
70

Total food waste

Food waste per 1 million yen in sales

16,00030

15,50025

15,00014,50014,0002055

65

13,500

60
55

2022

0.30

2019

2020

2021

2022

2023

50

*Target for fast food restaurants to contain food waste based on the Food
Recycling Law = Below 83.3kg per 1 million yen in sales

13,000

2019

2020

2021

2022

2023

15

Total food waste per 1 million yen in sales[kg/ 1 million yen in sales]

150

2019

60

Food waste per 1 million yen in sales

180

0

140

﹇ %
﹈
Food recycling rate

[thousand tons/year]

Paper

80

Food waste per 1 million yen
in sales & food recycling rate(all restaurants)
Food

2023

Electricity
Gas
CO2

Restaurant average, 1000 cash register units

CO2

2019

2020

2021

2022

2023

0.30

CFC Emissions(all restaurants)*Calculated from April to March of the following year

4,000

3,000

2,000

1,000

0

2018

2019

2020

2021

2022

CO2 emissions [t-CO2/year]

200,000

Gas

CO2 emissions [t-CO2/year]

400,000

CO2 emissions [t-CO2/year]

250,000

Electricity

Energy consumption [kl/year]

CO2

Total food waste [t/year]

Gas

Energy consumption [kl/year]

Electricity

Energy Consumption & CO2 Emissions

All restaurants
equivalent emissions [t-CO2/year]

Energy Consumption & CO2 Emissions

Energy consumption [kl/year]

Energy Consumption & CO2 Emissions

McDonald s Sustainability Report 2023

Introduction

Our Planet

Data

Community Connection

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

37

Jobs, Inclusion & Empowerment

Food Quality & Sourcing

Food Safety
GAP(Good Agricultural Practice)
Percentage of lettuce producers with
Global G.A.P. Plus Add-on certification

DQMP(Distributors Quality Management Program)
PLACEHOLDER

100 %15 locations

SQMS(Supplier Quality Management System)

Approximately

100 %3,000 100 %Responsible Sourcing
FSC® Certified(Forest Conservation)
Percentage of FSC-certified paper
containers and packaging forcustomers, tray liners and wooden
cutlery100%

Rainforest Alliance Certification(Sustainable Agriculture)

Percentage of coffee beans certified by Rainforest Alliance

100%

100 %

Food Safety Visit to Restaurants
Number and percentage of restaurants that
met audit requirements conducted by external
inspection companies

Percentage of suppliers who met
a more robust food safety management system that consists of
McDonald’s expectations, based on
GFSI benchmark

ra.org/ja

Number and percentage of distribution centers
audited by a third party and met our standards

MSC certified(Fishery Resource Conservation)

PLACEHOLDER

Percentage of caught whitefish for
Filet-O-Fish® from MSC-certified
fisheries

MSC-C-57384

100%

Number/percentage ofrestaurants that received
serious violations fromfood safety audit institutions

0 restaurants
0%0 cases

2,104

Female

2,633

Male

Gender
ratio

38.0%

62.0%

32.7%

29.4%

Percentage offemaleexecutives

25.5%

Percentage offemalemanagers

2030 target

40%

Beef
Percentage of sourcing fromdeforestation-free supply
chains98.5%

Number of franchised
restaurants

Total number of employees(full-time
employees)

Percentage offemale restaurant
managers*Figures from McDonald’s Global

Turnoverrate

Turnoverrate

Total monthly overtime hours

6.2 %18.4 hours

Paid leaveacquisition rate

Return to work rate
after parental leave

Male childcare
leave acquisition rate

2.3 %
57.1 %

Soy
Percentage of purchased credits for
RTRS* certification for soy in chicken
feed

100%

100%

Percentage of
RSPO-certified fry oil

878

Number of food poisoning
outbreaks(Sustainable Palm Oil
Procurement)

RSPO certified

Number of company-operated restaurants*Roundtable on Responsible Soy

100 %Average hourly wage by region
The minimum wage is set by each prefecture.
In 2023, the national average was 1,004 yen. We
guarantee a 100% minimum wage in all regions
and set competitive pay levels based on the level ofroles and responsibilities under McDonald’s global
compensation policy.

(company-wide)

29 %*Percentage of full-time& company-operated
restaurant staff in 2023

Compliance with labor-related
laws and regulations
McDonald’s is a people business, and as such, we place
importance on strict compliancewith laws and regulations in our
training and systems.
*Figures are company-operated restaurant staff<As of December 2023>

McDonald s Sustainability Report 2023

Introduction

Our Planet

Food Quality & Sourcing

Jobs, Inclusion & Empowerment

Community Connection

Data

Third Party Testimonial
すべては、おいしさと笑顔を地域の皆さまにお届けするために。
It is not well known in Japan that the food industry has major im-

According to the report, McDonald’s employs 200,000 people

pacts on the environment, and discussions have been taking place

including restaurant staff who come from diverse backgrounds ofglobally on ways to make it more sustainable in recent years. Need-gender, age, and nationality, and developing a friendly workplaceless to say, restaurant chains hold one of the keys in this regard andfor all these people is indeed a great challenge. Nowadays many

McDonald’s Japan, the leading chain in Japan operating close tobusinesses claim to have DE&I, but McDonald’s has been at the

3,000 restaurants, not only has significant impacts, but also has aforefront of practicing this. This experience should be useful toserious responsibility. It was with this in mind that I read throughother companies and perhaps it can be leveraged to the increasing

this report and it was clear to me that as a food industry leader,number of third-party delivery drivers in recent months. Regarding

McDonald’s is actively and responsibly working to lead the industry

the employees in managerial positions, it seems the percentage ofin the area of sustainability.

female managers is still lower than the male/female ratio of com-

For example, sourcing food materials creates the biggest im-pany-wide employees, but I am sure the company will achieve thepacts on the environment and McDonald’s is reducing the use oftarget by 2030 and become an even better team.

plastic and replacing it with 100% certified wood paper materials.

The company’s approach to the community, particularly youth

The white fish used in Filet-O-Fish® and coffee beans, which aresupport also stood out in the report. Currently, having a nutritionallythe signature menu items of McDonald’s, are 100% certified sus-balanced meal is becoming increasingly important for children. In

tainable. Considering that companies like McDonald’s source anfact, other countries have started to introduce regulations on foodenormous amount of food materials, delivering 100% is a great

and advertisements that target children. I hope that McDonald’s will

C.E.O., Response Ability, Inc.
Executive Director, Japan Business Initiative for Biodiversity(JBIB)
Vice-President and Director, Japan Ethical Initiative(JEI)

achievement and I respect what they’ve done. Sustainability inalso support children in the aspects of nutrition and health.

Naoki Adachi , Ph.D.

sourcing palm oil, soy, and beef has room to be improved, but theSome of the remaining issues will be difficult to tackle, but envi-

report clearly indicates that McDonald’s is working on it. I expect toronmental and social sustainability has now become a prerequisite

see progress in the future for beef, potatoes, and shrimp, which are

for the food sector as well. I expect that in Japan, McDonald’s willsourced in large quantities and create big impacts.

pioneer the introduction of a new practice for restaurant operation.
*Diversity, Equity & Inclusion

38