McDonald’s Corporation is a leading global fast-food chain that has made substantial progress in sustainability through its goals of carbon neutrality, sustainable sourcing, and waste management. The company’s ESG rating reflects its efforts to improve the environmental impact of its operations, particularly through sustainable packaging and energy-efficient practices. However, McDonald’s faces ongoing criticisms regarding supply chain practices, particularly around labor conditions in some regions, and concerns about promoting unhealthy eating habits. The company’s ESG score reflects a mix of progress in sustainability and the need for improvement in health and corporate governance. For more information, consult the McDonald's ESG report. The company has a medium ESG risk rating with medium exposure to various ESG issues and an average ESG score for managing those issues due to environmental and social issues. Some of the main ESG issues for McDonald’s are human capital, environmental and social impact of products and services, product governance, and business ethics. The business is actively working on sustainable practices to improve its ESG performance and is focusing on responsible palm oil sourcing and guest packaging solutions for the greatest impact. However, it has a few controversies with events related to accounting and taxation, labor relations, and quality and safety. McDonald’s has a 2050 decarbonization target and aims to achieve net zero emissions in line with the Paris Agreement. Climate Action is the only sustainable development goal that the company is aligned with so far. Stakeholders, including key stakeholder groups, are pressing the company to rejig its current approaches and endorse more responsible practices in its supply chain. For more information, download the latest McDonald's ESG report.