McDonald's Corp

The Company's Executive Vice President (EVP) Chief Global Impact Officer and reporting Vice President (VP) Chief Sustainability Officer are responsible for overseeing performance, actions, and goals relating to forests and McDonald's broader climate-related issues. They serve as the executive sponsor of McDonald's aspirations to source all food and packaging sustainably, and operate the most environmentally sustainable McDonald's restaurants Examples of specific forest related decision making by the Chief Sustainability Officer includes formal approval of all McDonald's forest policies and CDP disclosures. [...] Our Board of Directors' Sustainability and Corporate Responsibility Committee (the "Committee") reviews and monitors the Company's strategies and efforts to address Brand trust through its performance as a sustainable organization, including environmental and social issues. The Committee also reviews and monitors the development and implementation of performance metrics with respect to the Company's sustainability priorities. The Committee regularly reports to the full Board and, from time to time, other Board committees regarding its activities, and the full Board receive reports on the Company's sustainability efforts as circumstances warrant.

McDonald's global sustainability vision and goals are a central part of our Company's values and therefore are consistent across all activities. Specifically, however, the Global Impact department provides corporate staff leadership, coordination, and support for our global social and environmental impact policies, Company goals, programs, and reporting. This group includes Global Communications, Public Policy & Government Relations, and Sustainability and Social Impact teams, which help to manage overall climate change strategy integration and consistency for external engagement practices, such as with NGOs or policymakers. This global department coordinates with market-level subject matter experts and external advisors to manage the Company's goals across the Purpose and Impact platform, including the Company's Science Based Target for climate action and Commitment on Forests. The team also provides support for country-level sustainability staff for localized execution of environmental and social impacts relevant to our markets. The Company's senior leadership level, the Company's Executive Vice President (EVP) Global Chief Impact Officer and Vice President (VP) Chief Sustainability & Social Impact Officer are responsible for overseeing actions relating to climate change. The working partnership as the executive sponsors of McDonald's sustainability aspirations. Additionally, the EVP Chief Supply Chain Officer leads the Company's Global Supply Chain (GSC) department and works in partnership with Global Impact leadership to address Company sustainability priorities, including climate-related issues. For example, GSC and Global Impact work with suppliers to embed sustainability commitments, including climate change and deforestation, into global sourcing decisions for food and packaging through Global Sustainable Sourcing Specifications and direct collaboration in initiatives.

#### Governance\n\n#### We have made climate action an enterprise-wide priority. Governing bodies throughout the organization have varying degrees of oversight for implementing our Impact Strategy, including with respect to climate.\n\n#### Board Oversight of Climate Action\n\nThe Board believes that a fundamental understanding of Company business, strategy and industry assists in the effective discharge of its duties. It regularly reviews Company performance, including climate strategy, risk management practices, commitments and progress. As both a full Board and through standing committees, the Board oversees the Company's climate strategy.\n\nUnder the Company's Corporate Governance Principles, the Board is also responsible for overseeing the enterprise-wide risk management (ERM) framework, which is designed to identify, assess and prioritize strategic, financial and reputational risks with the potential to have a sustained business impact. This includes regular interaction with senior management regarding risk exposure and mitigation effects related to the Company's business strategy, operations and values, and annual reviews of identified strategic and enterprise risks. The ERM process includes consideration of climate-related risks (see Integration Into Overall Risk Management for more information).\n\n#### Governance Summary for Climate Action\n\n**Board of Directors (Board)** Regularly reviews Company performance and oversees the enterprise-wide risk management (ERM) framework.\n\n**Corporate Responsibility Committee** Assists the Board of Directors in fulfilling its oversight of the Company's initiatives, **of the Board of Directors** programs and strategies related to corporate responsibility matters, including those related to climate, in a manner consistent with McDonald's corporate purpose and values.\n\n**Chief Global Impact Officer** Responsible for overseeing climate-related matters and manages the Global Impact function.\n\n**Chief Sustainability & Social Impact Officer** Responsible for overseeing climate-related performance, actions, goals and issues, reporting directly to the Chief Global Impact Officer.\n\n**Senior Leadership Team** Senior executives from across the Company who are accountable for leading McDonald's Impact Strategy.\n\n**ESG Disclosure Committee** Primarily responsible for supervising dissemination of environmental, social and governance (ESG) information to stakeholders.\n\n**Global Impact** Focused on guiding the full strength of McDonald's ongoing efforts to effect positive change globally.\n\n**Global Supply Chain** Develops and executes sustainable sourcing strategies across the supply chain.\n\n**Customer Experience team** Focused on helping to increase restaurant energy efficiency through operations, equipment, design and technology.\n\n**Global Technology** Support in enhancing data tracking across Impact commitments, including climate targets.\n\n--NEW-PAGE--\n\n#### Corporate Responsibility Committee\n\nThe Corporate Responsibility Committee is a standing committee of the Board of Directors and has primary oversight of sustainability matters and associated enterprise risk, including climate-related risks. This Committee (previously named Sustainability & Corporate Responsibility) met four times in 2023.\n\n**Relevant Areas of Focus Include:**\n\n- Reviews and monitors strategies and efforts to address sustainability and brand trust.\n\n- Oversees enterprise risk relating to sustainability matters.\n\n- Reviews and monitors development and achievement of sustainability goals and metrics.\n\n- Reviews global sustainability reporting and communication plans.\n\nFor more information, see the 2024 [Corporate Responsibility Committee](https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/CORPORATE%20RESPONSIBILITY%20COMMITTEE%20CHARTER%202024.pdf) Charter.\n\n#### Management's Role in Assessing and Managing Climate Matters\n\n Chief Global Impact Officer and Chief Sustainability & Social Impact Officer\n\nThe Chief Sustainability & Social Impact Officer reports directly to the Chief Global Impact Officer, who oversees the entire Global Impact function. Both are jointly responsible for overseeing performance, actions and goals relating to climate and climate-related issues. They serve as the executive sponsors of McDonald's climate strategy. The Chief Global Impact Officer reports directly to the Company's Chairman and Chief Executive Officer, and reports on climate-related issues to the Board twice per year.\n\nAnnual performance plans for the Chief Global Impact Officer and Chief Sustainability & Social Impact Officer establish objectives related to the climate strategy, targets and issues, with compensation directly related to attaining those objectives (among others).\n\n#### Senior Leadership Team\n\nThe Company's Chief Global Impact Officer and Chief Sustainability & Social Impact Officer serve on a cross-functional leadership team with other executive and corporate officers, including:\n\n- Global Chief Legal Officer and Corporate Secretary\n\n- Global Chief People Officer\n\n- Global Chief Supply Chain Officer\n\n- Global Chief Financial Officer\n\nTogether, they oversee McDonald's Impact Strategy, ensuring focus on global sustainability performance, including climate-related issues. They handle the Impact Strategy and priorities, report progress to the Board, assess new opportunities, review Impact disclosures and manage communications on sustainability matters.\n\n#### Global Impact Function\n\nGlobal Impact is focused on harnessing and directing the full strength of McDonald's efforts to help effect positive change globally.\n\nThe Global Impact function comprises several critical teams, including:\n\n- Sustainability & Social Impact\n\n- Government Relations & Public Policy\n\n- Global Communications\n\n- Global Security\n\n- Ronald McDonald House Charities\n\nThis function provides leadership and support for McDonald's global Impact Strategy, including climate policies, programs and reporting, as well as support for country-level sustainability and Impact staff for localized execution.\n\n--NEW-PAGE--\n\nWithin Global Impact, the Global Sustainability & Social Impact team provides corporate staff leadership and coordination and support for global sustainability policies, programs and reporting. It also liaises with other departments throughout the Company and Franchisees to address climate-related issues. This includes the Government Relations & Public Policy team – which works to understand stakeholder and policymaker perspectives to support internal decision-making – and the Communications team, which drives global audience awareness of impact, sustainability and supply chain initiatives. Through integrated communications strategies, the team helps advocate for key sustainability priorities in support of McDonald's purpose and aids country-level sustainability staff in locally executing those priorities.\n\n#### ESG Disclosure Committee\n\nThe ESG Disclosure Committee is responsible for overseeing procedures and processes related to Impact commitment and disclosure governance, including external reporting. Among other responsibilities, the Committee oversees current and future disclosures and commitments, risks and opportunities. It comprises, primarily, leadership from Global Impact, Finance and Legal functions.\n\nThe ESG Disclosure Committee is closely involved in annual sustainability reporting processes. This includes reviewing progress on McDonald's global climate target to ensure proper due diligence and risk assessment has taken place prior to external publication.

The Sustainability & Corporate Responsibility Committee of our Board (the SCR Committee) reviews and monitors the Company's strategies and efforts to address sustainability and resiliency through its performance as a sustainable organization, including environmental and social issues such as climate-related risks. This involves updates and discussion on the Company's climate change strategy, risk management practices, commitments and progress. For example, in 2017, the Committee endorsed the commitment to and public launch of McDonald's Climate Action strategy, which includes the Company's science-based target for greenhouse gas (GHG) emissions reductions, approved by the SBTi. The SCR Committee continues to review and monitor the development and implementation of performance metrics with respect to the Company's sustainability priorities, including on climate change. [...] The Company's Chief Global Impact Officer and reporting Chief Sustainability Officer are responsible for overseeing performance, actions and goals relating to climate change and climate-related issues. They serve as the executive sponsors of McDonald's climate change strategy. Our Chief Global Impact Officer reports directly to the Company's President and Chief Executive Officer. [...] Within Global Impact, the Global Sustainability & ESG team provides corporate staff leadership, coordination and support for our global sustainability policies, programs and reporting. The team liaises with other departments throughout the business and Franchisees to address climate-related issues. This includes work with the Government Relations team, who brings the perspective of stakeholders and policymakers into the business to support decision-making.

## **Public Policy Engagement**

While McDonald's does not generally make contributions to political parties, candidates or organizations, public policy issues may arise that could impact the McDonald's System. To address these needs, the McDonald's Corporation Board of Directors created the Public Policy & Strategy Committee to evaluate potential contributions in a manner consistent with the Company's core values. In this section, learn more about McDonald's Political Contribution Policy, Political Contributions, McDonald's Trade Association Memberships and McDonald's PAC.

###### Our Governance Approach

We believe a robust governance structure is critical to effectively managing our strategies, goals
and performance indicators tied to environmental and social issues. We have defined owners and
certifying officers for each of our public commitments and disclosures. Supported by cross-functional
working groups, Franchisees and suppliers, these individuals are accountable for progress, elevation
of key risks, accuracy and completeness of disclosure. Our Impact Reporting & ESG Governance team
supports commitment and disclosure owners in providing relevant updates to the following governance
oversight bodies.

**Governance Body** **Oversight Responsibility** **Engagement Frequency**

**Board of Directors** Oversees our business in an honest, fair, Regular engagement, including by its
diligent and ethical manner; reviews our Corporate Responsibility Committee
strategic direction and objectives; and is (previously named Sustainability & Corporate
responsible for overseeing our ERM framework. Responsibility), which met four times in 2023.

**Senior Leadership team** Accountable for leading our Impact Strategy, Ongoing engagement.
including management of ESG-related
risks and opportunities to help create longterm value.

**ESG Disclosure Committee** Oversees procedures related to the Met six times in 2023, with ongoing informal
governance of our ESG disclosures, including engagement between meetings.
external impact reporting.

**Global Sustainability &** Provides Corporate Staff leadership, Ongoing engagement.
**Social Impact team** coordination and support for our global
sustainability policies, programs and reporting.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]McDonald's global sustainability vision and goals are a central part of our Company's values and therefore are consistent across all activities. Specifically, however, the Global Impact department provides corporate staff leadership, coordination, and support for our global corporate social responsibility / ESG policies, Company goals, programs, and reporting. This group includes Global Communications, Public Policy & Government Relations, and Corporate Relations, who help manage overall climate change strategy integration and consistency for external engagement practices, such as with NGOs or policymakers. This global department coordinates with market-level subject matter experts and external advisors to establish the Company's goals across the Brand Purpose and Impact platform, including the Company's Science Based Target for climate action and Commitment on Forests. The team also provides support for country-level sustainability staff for localized execution of environmental and social impacts relevant to our markets.
In 2021, at the Company's senior leadership level, the Company's Executive Vice President (EVP) Chief Global Impact Officer and Vice President (VP) Chief Sustainability Officer were responsible for overseeing actions relating to climate change. They worked in partnership as the executive sponsors of McDonald's aspirations to source all food and packaging sustainably, and develop and operate the most environmentally sustainable McDonald's restaurants.
Additionally, the EVP Chief Supply Chain Officer leads the Company's Global Supply Chain (GSC) department and works in partnership with Global Impact leadership to address Company sustainability priorities, including climate-related issues. For example, GSC and Global Impact work with suppliers to embed sustainability commitments, including climate change and deforestation, into global sourcing decisions for food and packaging through Global Sustainable Sourcing Specifications and direct collaboration in initiatives.