It is appropriate that Arcos Dorados, the franchise that operates the McDonald’s brand in 20 markets in Latin America and the Caribbean, has called its social and environmental strategy ‘Recipe for the Future’. The programme’s goals are aligned with the UN’s Sustainable Development Goals and include making a positive impact on youth opportunity, sustainable sourcing, packaging and recycling, climate change and family wellbeing. To help achieve these targets, Arcos Dorados sold a sustainability-linked bond (SLB) in April this year and says it became the first company in the restaurant industry to sell a financial instrument with environmental objectives.
Arcos Dorados had previously committed to reducing emissions from its restaurants and offices by 36%, and from its supply chain by 31%, by 2030. It hired a third party, climate consultancy South Pole, to assess its 2021 greenhouse emissions as a baseline for measuring progress. Last year, the company also tied a portion of executives’ variable compensation to environmental, social and governance (ESG) indicators under the Recipe for the Future framework.
