Climate Change

We strive to generate changes of habit in our restaurants, in the transition towards energy efficiency and in the use of renewable materials. Through the implementation of multiple initiatives that reduce our operation’s impact on the environment, we seek to motivate other industries to take care of the planet and create a better future for all.

Our Initiatives

Environmentally efficient restaurants

We design our restaurants to be as energy-efficient as possible and to use natural resources responsibly, promoting waste sorting and separation and the use of efficient air conditioning systems.

Our guidelines

Energy saving

Installation of a high-efficiency air conditioning system and environmentally-friendly refrigerants.
Use of programmable intelligent temperature control systems to operate when needed while ensuring guest comfort.
Reduction of energy consumption by automatically switching exterior signage on and off, motion sensors to operate lights in low-traffic areas, and 100% LED lighting the restaurant.
Use of an accessible electricity consumption meter to monitor usage and potentially implement additional savings initiatives.
Installation of insulated ceilings to minimize the use of air conditioners.
Reduction in the use of artificial lighting by allowing more natural light into the kitchens.
Usage of insulated glass designed to reduce the impact of the sun’s heat.
Use of energy-efficient kitchen equipment.

Our commitment over the years

2018: energy savings reached 15%.
2019: although we had 3% more restaurants, we only had a 2% increase in energy consumption.
2021: we increased the use of renewable energy in our restaurants from 4% to almost 12%.
2022: we nearly tripled the use of renewable energy in our operation, increasing it from 12% to 29%.

Water Conservations

Thanks to the Natal Program, deployed in more than 500 restaurants, we reuse water condensation from restaurant air conditioning units for cleaning and irrigation.
Use of water flow reducers in taps in restrooms and kitchens.
Reuse of rainwater for flushing urinals and toilets.
Planting of native species that require limited irrigation.

Our commitment over the years

More than 90 million liters of water reused thanks to the Natal Program.
20% of our restaurants have a water collection system for reuse.

Waste separation

Installation of bins in the lobby with the ability to separate liquid, dry and organic waste.
Installation of a garbage storage room including a cardboard separation section.
In 2022, 88.5% of our packaging materials came from renewable sources.

Efficient construction

Use of eaves to generate shade and reduce the use of energy for cooling.
Usage of mechanical ventilation to refresh and guarantee the air quality of the entire restaurant.
Analysis of the restaurant building’s orientation to maximize natural light and reduce the use of air conditioners.

Use of recycled materials

Reuse of demolition materials for the construction of restaurants and other uses.
Use of certified wood in the manufacture of restaurant furniture.

Sustainable Development Program

We seek to transform our restaurants into information, educational and training centers for the sustainable development of the communities in which we operate. To this end, we implemented a program that brings our employees and guests closer to concepts such as conscientiousness of water and energy conscientious as well as waste separation, among others.

The Sustainable Development Program, guided by the “17 United Nations Sustainable Development Goals”, aligned line with our global strategy to leverage our scale to generate positive impacts on society and the environment. This program is inspired by such existing and established initiatives as Open Doors, Good Neighbor and Coolture of Service.

Eliminating single-use plastic

At Arcos Dorados, we work to eliminate single-use plastics from our restaurants while still using the highest-quality packaging.

Our strategy focuses on some priority lines of work such as: decreasing the amount of materials used in packaging through design innovation, shifting inputs towards meeting targets and increasing circularity.

Thanks to this, since 2017 we have eliminated 1,700 tons of single-use plastics from our operation.

Our guidelines

Elimination of plastic straws in all our restaurants.
We no longer provide plastic lids for hot and cold beverages consumed inside restaurants.
We replaced 100% of plastic salad bowls with FSC-certified fiber-based ones.
We promoted the manufacture of more than 110,000 bio-based thermoplastic food trays from household waste in Brazil in collaboration with the Israeli Company UBQ, a global leader in recycling organic materials.
We eliminated plastic-based breakfast containers.
We redesigned our McFlurry cups and lids and they now contain 90% less plastic.

Our commitment over the years

2018

2019

2020

2021

2022

2018

We reduced the use of 200 tons of plastic with the “Straw upon demand” program.

2019

We reduced the use of 130 tons of plastic in Argentina and Colombia with the replacement of salad bowls.
In Colombia, we replaced the plastic or “styrofoam” packaging of the entire breakfast menu with paper packaging.
69,000 fewer plastic bottles discarded with the “Better in a cup” campaign.

2020

We removed more than 1,400 tons of single-use plastic from our restaurants.

2021

We recovered 147 tons of cardboard, 2 million liters of oil and 90.6% of our packaging comes from certified and recycled sources.

2022

100% of our fiber suppliers met our certification goal.

Carbon Footprint

Committed to minimizing the impact of our operation, we monitor greenhouse gas emissions throughout our supply chain.

Our guidelines

In April 2022, we issued our first financial bond linked to sustainable development goals, representing a significant step in our environmental commitments with a positive impact on our entire value chain. With the issuance of the Sustainability-Linked Bond (SLB), we became the first company in our industry in the region to link its financing strategy to sustainable development goals related to reducing carbon emissions across our operations and supply chain.

Arcos Dorados is part of the Carbon Disclosure Project (CDP), the global disclosure system for self-reported environmental data in the categories of Forests, Water and Climate Change.

Through the CDP Supply Chain program, we ask our suppliers to report the greenhouse gas emissions generated in the production of raw materials and the initiatives developed to reduce them.

Our work throughout the years

2018

2019

2020

2021

2022

2018

We were recognized for having the highest response rate achieved by a member of Latin American member of the CDP program in topics such as Climate, Water and Forest.

2019

We achieved the participation of 245 suppliers, who reported a total emission reduction close to 3 million tons of CO2 equivalent.
We were recognized once again for having the highest response rate achieved by a member of Latin American member of the CDP program in topics such as Climate, Water and Forest.

2020

We achieved for the first time a 100% response rate to the questionnaire.

2021

We measured the carbon footprint of all our regional operations for the first time, reaching the 20 countries that make up Arcos Dorados.

2022

We issue our first financial bond linked to sustainable development goals.

Earth Hour

We have been supporting the World Wildlife Fund (WWF) campaign for more than 10 years. Once a year, we turn off all external lights in our restaurants and offices for 60 minutes as part of our participation in this global initiative.

Our vision for the future

2025

2030

2025

2030

GOAL 17

Strengthen the means of implementation and revitalize the global partnership for sustainable development

We are aware that we cannot do this alone. Achieving this goal requires the development of strategic alliances that enable us to carry out initiatives that impact more people. This makes SDG 17 transversal to all our pillars.

Our contribution: We are all in this together, from Arcos Dorados’ employees, Franchisees and suppliers to investors, NGOs and academics, and we know that local communities and subject matter experts are critical to lasting impact. Continuing to build meaningful partnerships will help us prioritize the issues of greatest concern to our business and society, and drive innovation.

GOAL 12

Ensure sustainable consumption and production patterns

Responsible sourcing of our food and packaging is fundamental to our ability to continue to source high-quality raw materials in the future. This includes making the most efficient use of natural resources and minimizing negative impacts on people and the planet.

Our contribution: We have a strong commitment to source only certified and recycled raw materials. In addition, we work to eliminate single-use plastics from our operation and generate circular economy procedures that allow us to reduce our impact on the environment.

GOAL 7

Ensure access to affordable, safe, sustainable and modern energy for all

Energy is the main contributor to climate change, accounting for around 60% of total global greenhouse gas emissions.

Our contribution: Through changes in habits in our restaurants, we are working to ensure sustainable energy management.

GOAL 6

Ensure availability and sustainable management of water and sanitation for all

The sustainable management of water resources, in turn, allows us to improve the management of food and energy production and thus contribute to the economic growth of communities. To this end, it is important that we work to reduce the consumption of this natural resource.

Our contribution: We carry out different implementations in our restaurants that allow us to regulate consumption. In addition, through the Natal Program, we reuse water for cleaning and irrigation tasks in the restaurants.

GOAL 15

Protect, restore and promote sustainable use of terrestrial ecosystems, combat desertification, halt and reverse land degradation and halt biodiversity loss

Forests around the world are threatened by deforestation, which is estimated to account for up to 15% of global greenhouse gas (GHG) emissions. This represents a real risk to our business, our supply chain and our customers.

Our contribution: Committed to caring for them, we were the first company to sign a global agreement to combat climate change, engaging in the supply chain to ensure that our raw materials do not contribute to deforestation.

GOAL 14

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

The ocean drives the global systems that make the Earth habitable for humankind. Our rainwater, drinking water, weather, climate, coastlines, much of our food and even the oxygen in the air we breathe are provided and regulated by the sea.

Our contribution: To ensure their proper management, we work to ensure that we source from sources that are respectful of the seas and the environment.

GOAL 13

Take urgent action to combat climate change and its effects

Climate change is the greatest environmental issue of our time and affects our customers, our employees, from our supply chain to the communities in which we operate our restaurants.

Our contribution: With a presence in 20 countries in the region, at Arcos Dorados, we are using our scale, engaging across our supply chain, to help address this defining issue for current and future generations.

GOAL 8

Promote sustained, inclusive and sustainable economic growth; full and productive employment and decent work for all

Reducing unemployment and developing useful skills, especially for young people, are essential components of sustained and inclusive economic growth. With a presence in 20 countries in the region, we employ more than 100,000 people, 71% of whom are young people between the ages of 19 and 24.

Our contribution: We are one of the main employers of young people in the region. We understand that it is through first job opportunities and ongoing training that we can ensure people’s professional development.

GOAL 4

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Education contributes to reducing inequalities, empowering people around the world to lead healthier and more sustainable lives.

Our contribution: We remain strongly committed to providing training opportunities for all people, whether they are employees or young people in their final years of secondary school.

GOAL 3

Ensure healthy lives and promote well-being for all at all ages

Access to health and well-being is a human right, and this is why the Sustainable Development Agenda offers a new opportunity to ensure that all people, not just those with the highest purchasing
power, can access the highest standards of health and healthcare.

Our contribution: From Arcos Dorados and the McDonald’s system of which we are part, we work to keep families with children receiving medical treatment together and close to specialists. In addition, we are constantly evolving, providing changes in our menu offerings and alternatives to bring children to incorporate new habits into their daily lives.