Life Beef Carbon final seminar. By Eloi de la Celle (McDonald's France) 24 November 2021

1. Climate strategy
to reduce beef
supply impacts
November 24th 2021
Eloi de la Celle – Supply Chain & Sustainability Director
McDonald’s France

2. McDONALD’S FRANCE PRESENTATION

3. #McDonaldsAgriTour
@McDoFr_Newsroom
McDONALD’S FRANCE PRESENTATION
KEY FIGURES
Quality of the
relationship with
the agricultural
sector
Quality of raw
materials and
products
Environmental
quality
1485
RESTAURANTS
47 000
FARMERS IN TOTAL
1,9
MILLION CUSTOMERS
DAILY
MCDONALD’S
FRANCE
2019
INCLUDING 2 700
UNDER CONTRAT

4. #McDonaldsAgriTour
@McDoFr_Newsroom
BUILD LONG TERM
RELATIONSHIPS WITH OUR
SUPPLIERS AND WORK IN
CHANNELS BY PROMOTING
CONTRACTUALISATION AND
FRENCH ORIGIN
GUARANTEE THE QUALITY
OF OUR PRODUCTS: GOOD
AGRICULTURAL
PRACTICES, HEALTH
SAFETY, ORGANOLEPTIC
QUALITY
IMPROVING OUR
ENVIRONMENTAL
FOOTPRINT: THE
AGROECOLOGICAL
STRATEGY
McDONALD’S FRANCE PRESENTATION
OUR PURCHASING STRATEGY: 3 PILLARS OF QUALITYPRODUCTS
QUALITY OF THE
RELATIONSHIP
WITH THE
AGRICULTURAL
SECTOR
QUALITY OF RAW
MATERIALS AND
PRODUCTS
ENVIRONMENTAL
QUALITY

5. #McDonaldsAgriTour
@McDoFr_Newsroom
McDONALD’S FRANCE PRESENTATION
MCDONALD’S FRANCE BEEF FIGURES (2019)
90 %
OF MCDONALD'S FRANCE BEEF PATTY VOLUMES
41 800 T /ANNUM
 SUPPLIER OF CHAROLAIS BEEF PATTIES, PERMANENTLY
PART OF MENU UNDER THE SIGNATURE RANGE
 1ST FROZEN BEEF PATTY PRODUCER IN FRANCE
10 %
OF MCDONALD'S FRANCE BEEF PATTY VOLUMES
4 600 T /ANNUM
SINCE 2012
SINCE 1988
A SUPPLY CHAIN BASED ON THE FOLLOWING PRINCIPLES:
• LONG TERM & STABLE RELATIONSHIPS WITH SUPPLIERS
• RISK MITIGATION WITH 3 MAIN ORIGINS (FRANCE, IRELAND, NETHERLANDS) AND A SIGNIFICANT NUMBER OF SLAUTHERHOUSES
• BUILD TRUST UP TO FARMERS AND BRING VALUE THROUGH ASSURED SUPPLY PROGRAMS AND SEGMENTATION (CHAROLAIS
BREED)

6. X €/kg Fixed Price agreement
on rearing costs
Cattle Reservation On Farm
Assured & Scheduled supply
Carcass specifications +
Sustainability programs
6 to 18 Months
in advance
1 406
FARMS
35 700
CATTLE
IN 2019
15 COOPS
16 ABATTOIRS
CLEAR AGREEMENT
ALL ALONG THE
SUPPLY CHAIN
McDONALD’S
MOYPARK
 For more than 15 Years
 15% of our French Meat 6
McDONALD’S FRANCE PRESENTATION
CONTRACTUALIZATION : THE SPEARHEAD OF OUR STRATEGY

7. #McDonaldsAgriTour
@McDoFr_Newsroom
McDONALD’S FRANCE CARBON FOOTPRINT
AND MITIGATION STRATEGIES

8. #McDonaldsAgriTour
@McDoFr_Newsroom
McDONALD’S FRANCE CARBON FOOTPRINT
WORKING SINCE 2005 TO REDUCE ITS ENVIRONMENTALFOOTPRINT
FIRST CARBON
FOOTPRINT OF
MCDONALD’S FRANCE
2005 2010 2020
Energy Plan
Waste Plan
AGROECOLOGICAL STRATEGY DEPLOYED ON ITS 5
MAIN AGRICULTURAL CATEGORIES 2010-2020
2020 RESULTS :
RESTAURANT SCOPE : -50% per transaction VS 2005
FULL SCOPE INCLUDING AGRICULTURE : -16% per transaction VS 2005
FOOD: 84% OF McDONALD’S France GHG EMMISSIONS
BEEF IS THE LARHEST CONTRIBUTOR OF OUR GHG EMMISION (70%) BUT WE BELIEVE ALSO THE
GREATER SOURCE OF SOLUTIONS
LOGISTICS
WASTE
ENERGY

9. McDONALD’S FRANCE MITIGATION STRATEGY
ACONCERTED, PRAGMATICAND LONG-TERMAPPROACH 2010 - 2020
4 PILLARS
- REDUCE THE GHG EMISSIONS
- PRESERVE WATER RESOURCES
- MAINTAIN BIODIVERSITY
- IMPROVE ANIMAL WELFARE
5 AGRICULTURAL
CATEGORIES
CONCERTATIONS WITH SUPPLIERS
AND STAKEHOLDERS FROM THE
SUPPLYCHAIN

10. McDONALD’S FRANCE MITIGATION STRATEGY
MAINACTIONS TO REDUCE BEEF SUPPLY CHAIN IMPACTS ON CLIMATE
Identification of 7
main challenges of
beef supply chain and
the associated action
levers
2011
Technical and financial
contribution to
CAP2ER development
2018
2015
Beef patty LCA
on 2009 data's
Identification of 50
farms to realize first
CAP2ER Niv 2 diagnotics
Cooperative's technician
trainings
Analysis of the results
and definition of action
plans for 50 CAP2ER
diagnostics
Definition of the
deployment plan in all
contracted farms
2013 2017
2nd CAP2ER Niv 2 diagnostics in
50 farms
100 % contracted farms with a
CAP2ER Niv 1 diagnostics
Data base analysis
Group restitution by
cooperative (12 in total)
2020
1st membership
to SAI Platform
Participation to Interbev Environnement working group
1st membership to the
European Roundtable for
Sustainable Beef (ERBS)
Beef patty LCA
on 2017 data's
-6% OF GHG EMISSION PER BEEF PATTY BETWEEN OUR 2 LCA

11. #McDonaldsAgriTour
@McDoFr_Newsroom
MCDONALD’S FRANCE CURRENT WORK ON
CLIMATE STRATEGY: 2030 VISION

12. #McDonaldsAgriTour
@McDoFr_Newsroom
MCDONALD’S FRANCE CLIMATE ROADMAP
WORKING SINCE 2005 TO REDUCE ITS ENVIRONMENTALFOOTPRINTAND IS COMMITTED TO
CONTRIBUTE TO NEUTRALITYIN 2050
2005 2010 2020 2030
Energy Plan
Waste Plan
Agroecological strategy deployed on its 5
main categories 2010-2020
Energy Plan
Circular Economy Strategy (waste)
0 Diesel Plan
Sustainable Supply Chain Strategy 2020-2030
(under construction)
Towards
2050 CONTRIBUTING TO CARBON NEUTRALITY
2030 TARGET
FULL SCOPE : -35% / GC vs 2005
2020 RESULTS
RESTAURANT SCOPE : -50% / GC vs 2005
FULL SCOPE : -16% / GC vs 2005
GC : Guest Count = transaction
First carbon footprint of
McDonald’s France

13. McDONALD’S FRANCE SUSTAINABLE SUPPLY CHAIN
STRATEGY 2020-2030
AWAYTO TACKLE CHALLENGES WORK IN PROGRESS
4 pillars
7 categories
CLIMATE BIODIVERSITY ANIMAL WELFARE
FARMERS
2 principles REDUCE IMPACTS REGENERATE

14. McDONALD’S FRANCE SUSTAINABLE SUPPLY CHAIN
STRATEGY 2020-2030
MAINACTIONS PROJECTED ON BEEF SUPPLY CHAIN TO REDUCE IMPACTS ON CLIMATE
TO CONTINUE TO REDUCE AND AVOID EMISSIONS, WE :
• PLAN TO DEPLOY MORE WIDELY CAP2ER LEVEL 2 ON FARMS UNDER CONTRACT AND
CARBON CREDIT OBTENTION THOUGH THE LOW CARBON LABEL IN ORDER TO FOLLOW GHG
EMISSION REDUCTION
• WILL CONTINUE TO SUPPORT NATIONAL/EUROPEAN INITIATIVES TO ACCOMPANY THIS
REDUCTION ON A WIDER SCOPE OF OUR SUPPLIES
WE ARE GOING FURTHER WITH THE BEEF SECTOR by IDENTIFING INNOVATIVE PRACTICES TO ACCELERATE
CARBONE STORAGE :
• UNDER GRASSLAND
• IN TREES AND HEDGES
… WHICH HAVE OTHER POSITIVE IMPACTS ON BIODIVERSITY, SOIL FERTILISATION, LANDSCAPE, ETC.

15. #McDonaldsAgriTour
@McDoFr_Newsroom
McDONALD’S FRANCE CLIMATE STRATEGY
SEQUESTRATION : PILOT PROJECTS TO TEST PRACTICES BEFORE TO SCALE-UPTHEM IN
UNDER-CONTRACT FARMS
TREES AND HEDGEROWS
Plant
SOIL
Regenerate
GRASSLAND
Manage
ECO-DESIGN :
Produce on farms with low-carbon and
High Environmental Value labels
With financial support from ADEME

16. 3 GRAZING METHODS X 2 FARMS X 3
REGIONS = 18 FARMS UNDER CONTRACT
SPECIFY THE QUANTITY OF CARBON
STORED IN THE GRASSLANDS ON THE
SURFACE AND IN DEPTH AND TO IDENTIFY
THE LEVERS AROUND THE GRAZING MODE
TEST 3 GRAZING MODALITIES IN 3 REGIONS OF
FRANCE REPRESENTATIVE OF THE PEDO-CLIMATIC
CONTEXTS AND OF OUR SUPPLY REGIONS
SCIENTIFIC RESEARCH
PROJECT LEAD WITH INRAE
& VETAGRO
OUR RESULTS WILL FEED NATIONAL
PROGRAMS AS THE OBSERVATORY OF
SOILS IN BREEDING BUILT ESPACIALLY BY
INTERBEV AND IDELE
AND ALSO EUROPEAN PROJECTS AS
CLIENFARMS
AN INTERNSHIP LAUNCHED IN MARCH
2021,
FOLLOWED BY A THESIS LAUNCH IN
JANUARY 2022
>> A 3.5 YEAR PILOT PROJECT
IMPROVE RECOGNITION OF CURRENT CARBON
STOCK IN CALCULATION METHODOLOGIES
MEASURE THE IMPACT ON CARBON STORAGE
WHILE MEASURING THE TECHNICAL AND ECONOMIC
IMPACTS.
IDENTIFIED
AREAS
CONCEPT & GOALS PRINCIPLE PERIMETER
McDONALD’S FRANCE GRASSLAND PROJECT
EFFECTS OF GRAZING SYSTEMS ON CARBON SEQUESTRATION, BIODIVERSITYAND TECHNICO-
ECONOMIC RESULTS OF CATTLE PRODUCTION SYSTEMS

17. #McDonaldsAgriTour
@McDoFr_Newsroom
McDONALD’S CLIMATE STRATEGY
POINTS OF CONSIDERATION TO GO FURTHER
• BETTER RECOGNITION OF THE CARBON STORED AND ECOSYSTEMS SERVICES PROVIDED BY
BREEDING
• IMPROVEMENT OF CARBON SEQUESTRATION AND GHG REDUCTION MODELS
• INCENTIVES TO REWARD TRANSITION BUT ALSO TO REWARD RESULTS ACHIEVED BY FARMERS
• PROGRAMS OR PLATFORM TO ENHANCE SYNERGIES BETWEEN :
• AGRICULTURAL SECTORS
• PRIVATE ACTORS THEMSELVES AND ALSO WITH PUBLIC ORGANISATIONS
• LOCAL AND INTERNATIONAL WORKS
… IN ORDER TO :
• PROPOSE A SYSTEMIC APPROACH TO FARMERS
• USE COMMON METHODOLOGIES
• WELL ONBOARD FARMERS WITH SIMPLE MESSAGES
• DEVELOPMENT OF RELEVANT KPI AND NEW REPORTING TECHNOLOGIES THANKS TO R&D IN
ORDER TO FACILITATE DATA COLLECTION AND FOR A BETTER MONITORING OF NEW PRACTICES
IMPLEMENTED
• INNOVATION TO FIND PRACTICES WITH ENABLES TO STRONGLY REDUCE GHG EMISSION

18. THANK YOU !