Investors engaging with fast-food companies want to see progress on Scope 3

Investors are engaging with fast-food companies that have set transition targets but where Scope 3 emissions management is turning out to be an issue. A report by an $11trn investor coalition, the Global Investor Engagement on Meat Sourcing, examined environmental progress by Chipotle Mexican Grill, Domino’s Pizza, McDonald’s, Restaurant Brands International (owner of Burger King), Wendy’s Co. and Yum! Brands (owner of KFC, Pizza Hut and Taco Bell). The report shows that these companies have set targets publicly. However, Scope 3, which involves agricultural supply chains and covers the bulk of their emissions, is difficult to measure, report and therefore monitor. The concern is that these targets may not be followed up by significant progress across the board.