Member AUM
$70 trillion

Investors Press Fast-Food Giants to Move Faster on Climate and Water Risk Management, One Year into $11 Trillion Engagement

  •  Investor coalition nearly doubles in a year from $6.5 to more than $11.4 trillion of combined assets under management.  

  • Among six companies, two have publicly committed to science-based climate targets, two have intentions to set emissions reduction targets, one has undertaken a water risk assessment and committed to assessing the resilience of its animal protein supply chain to various warming scenarios.  

  • New phase of investor engagement calls for further climate and water action.

(London and Boston, 27 January 2020) –  A global investor coalition representing more than $11.4 trillion of assets today urged six of the world’s largest fast-food companies to take faster and deeper action to manage climate and water risks in their supply chains. The coalition, facilitated by global investor network FAIRR and sustainability organisation Ceres, originally launched in January 2019 with combined assets of $6.5 trillion. In one year, it has grown by 75% to include over 90 investors with combined assets of $11.4 trillion. 

The investors are engaging with Chipotle Mexican Grill, Domino’s Pizza, McDonald’s, Restaurant Brands International (owners of Burger King), Wendy’s Co. and Yum! Brands (owners of KFC and Pizza Hut). The firms are being asked to set aggressive targets to reduce their greenhouse gas emissions, water usage and water quality impacts of their meat and dairy supply chains.

One year into the engagement, the results show some progress across the key requests made by the investors, according to a new analysis released today by Ceres and FAIRR. However, the fast-food companies’ efforts thus far do not sufficiently mitigate their exposure to the considerable physical, regulatory, and reputational risks climate change poses to animal agriculture. What’s more, the companies are not responding at the pace required to match the magnitude of their environmental impacts. Of the six engaged companies:

  • Two (McDonald’s and Yum Brands!) have set or publicly committed to set science-based emission reduction targets, which are adequate for limiting global warming to well below 2 degrees Celsius above pre-industrial levels, with the aim of limiting warming to 1.5 degrees. Restaurant Brands International has stated its intention to set an emissions reduction target for its restaurants in the U.S. and Canada.

  • Only one (McDonald’s) has publicly disclosed that it has conducted a water risk assessment specifically for meat and dairy suppliers. Restaurant Brands International plans to conduct a life-cycle assessment which will consider its water footprint, among other impacts.

  • None have set specific requirements on climate and water for meat and dairy suppliers, with unclear compliance monitoring systems across the board.

The six fast food companies have a combined market cap of over $260 billion and collectively manage over 120,000 restaurants worldwide. Today’s analysis is based solely on public disclosures to date and does not reflect key improvements discussed in private dialogues.

Eugenie Mathieu, Senior SRI Analyst, Aviva said: “To create a pathway to achieving the Paris Agreement and to avoid water scarcity, the food sector needs to show that it is managing its emissions and water usage with the same urgency and focus as any other acute business risk. This engagement sets out clear investor expectations from fast food giants. These firms are leaders in fast food, and we would like them to demonstrate similar leadership in managing the material financial risks of climate and water in their supply chains.”

Aarti Ramachandran, Head of Research and Engagements, FAIRR Initiative said: “Investors are concerned about the climate impacts of our burgers and burritos. Feed for livestock alone uses around a third of annual global water withdrawals and is a major emitter of greenhouse gases. Failure by the global fast-food sector to tackle the environmental issues in their supply chains puts the long-term financial sustainability of their businesses under threat. Investors are asking the industry to manage these risks, using tools such as water risk assessments and science-based emissions targets, but the companies are failing to respond at the pace and with the detail required by investors.”

Kirsten James, Director of Water, Ceres said:  “Fast food companies have long lagged behind other high-emitting and water-intensive industries that take these material, financial and reputational risks seriously. It is time for these companies to have a plan and take urgent steps to ensure their meat and dairy supply chains are resilient to the impacts of rising temperatures and extreme droughts and flooding. Investors are not only demanding action, but they want more information about the concrete steps that companies are taking to tackle supply chain issues — the cost of ignoring them is too high.”

The second phase of the Ceres/FAIRR engagement launches today with the investor coalition writing to each company with specifically tailored requests based on their current strategies. The engagements are also supported by members of the Interfaith Center on Corporate Responsibility (ICCR).

**<br />Notes to editor**

For more information, including interviews contact:

o   FAIRR: Sophie Grant, ESG Communications

T: +44 (0) 7817371323 | E:

o   Ceres: Sara Sciammacco, Ceres

T: 617-247-0700 ext. 172 | E: 

Note that investors with combined assets of over $11 trillion are backing the Ceres/FAIRR climate and water engagement which is the subject of this press release. FAIRR has more than 200 institutional investors with over $20 trillion of combined assets participating in its activities. The Ceres Investor Network on Climate Risk and Sustainability comprises 163 institutional investors, collectively managing more than $25 trillion in assets.

About Ceres

Ceres is a sustainability nonprofit organization working with the most influential investors and companies to build leadership and drive solutions throughout the economy. Through powerful networks and advocacy, Ceres tackles the world’s biggest sustainability challenges, including climate change, water scarcity and pollution, and inequitable workplaces. Ceres is also a founding partner organization of Climate Action 100+. The five-year investor initiative aims to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. For more information, visit and follow @CeresNews.


The FAIRR Initiative is a collaborative investor network, founded by Jeremy Coller. It works with institutional investors to define the material ESG issues linked to intensive livestock and fish farming systems and provide them with the tools necessary to integrate this information into their asset stewardship and investment decisions, including the Coller FAIRR Index, The world’s first comprehensive assessment of the largest global animal protein companies on environmental, social and governance issues. Visit and follow @FAIRRinitiative