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2006 CSR Report Goals

In our 2006 Worldwide Corporate Responsibility Report, we established goals related to key social and environmental performance categories. The Progress Snapshot below provides a brief overview of our achievements and indicates where there is still more progress to be made.

While we’re reporting on our progress to date here, it’s important to note that many of these goals are long-term priorities that we will continue to pursue for the foreseeable future. The overarching goal of our corporate responsibility strategy is to focus on continuous improvement. Sometimes, progress comes more slowly than we would like, but the key is that we are always moving forward.

2006 GOALS Progress (Levels +/++/+++/Met Goal)

SUSTAINABLE SUPPLY CHAIN

   
Continue working with suppliers to promote supplier-led leadership on sustainability issues. As part of this effort, we plan to convene a top-level summit on sustainability issues with our suppliers by year-end 2006.  ++In August 2006, we engaged our top 15 global suppliers in dialogue on sustainability at the supplier symposium.  We regularly put sustainability on the agenda of major product-specific supplier forums.  There is additional work with suppliers in each area of the world to promote their sustainability leadership.  For example, McDonald’s Europe held a supplier summit focused on the topic of sustainability in 2007.  McDonald’s Europe, McDonald's Canada, and McDonald's USA have also introduced annual awards to recognize top suppliers in the area of sustainability each year.
Complete Project Kaleidoscope  Met GoalMcDonald’s, the Walt Disney Company and seven other organizations that work on workplace environment issues, published the report in May 2008.
Expand implementation of our environmental scorecard and use it as a tool to work with suppliers on effective management of their
environmental impacts
  +++As of the end of 2007, the Environmental Scorecard had been rolled out to all direct suppliers of our five core products in Australia, Canada, the UK and all of our Asian markets. It was also rolled out to all bakery product suppliers and to a limited number of other suppliers in the U.S.  Suppliers using the scorecard report increased awareness of resource use, and many have identified areas for immediate improvement.
Continue to evaluate fishery suppliers and align our purchasing specifications with our assessments of their sustainability +++In 2007, 91% of our fish was sourced from fisheries without any unsatisfactory sustainability ratings, and our Filet-O-Fish suppliers to McDonald's Japan and McDonald's China finalized their move away from unsustainable (red light) Russian Alaskan Pollack (RAP). Suppliers to McDonald's China completed their transition away from RAP in 2008.
Maintain our strong animal welfare audit program Met Goal99% of our approved abattoirs were audited for animal welfare in 2007, and 99.2% of those passed their audits.  These included beef, poultry and pork processing plants that supply  the McDonald's System in all the major geographic sectors in which we do business.

NUTRITION & WELL-BEING

   
Continue to develop new menu offerings that provide our customers with a range of choices that correspond to their needs and preferences and can fit into a balanced diet ++We continue to test and offer consumer relevant products while also maintaining the quality of our global core products – hamburger, cheeseburger Big Mac, chicken nuggets and our world-famous French fries.
Develop more Happy Meal choices, including new entrée offerings and non-carbonated beverages without added sugar. ++We are continuing to evolve Happy Meal options by including fruit and/or vegetable offerings as a choice. Currently, all of our nine largest markets include fruit or vegetable options as Happy meal choices.
Stick to our timetable for phasing in our new nutrition information initiative for core packaging items Met GoalWe achieved our nutrition information initiative (NII) goal--NII packaging for core menu items in 20,000 restaurants, worldwide, by the end of 2006.
Continue to assess, listen, learn and evolve our policies and marketing and communications practices so that we can continue our special regard for young people ++We enhanced our Global Children’s Marketing Guidelines to further unify our System around a common set of principles for responsible marketing.
Expand our engagement with experts to ensure that we are guided by the best scientific information and insight ++We have engaged additional Global Advisory Council members and continue to work with our Global Moms' Advisory Panel to guide our thinking. Markets around the world continue their work with highly regarded nutrition and children’s well-being experts.

ENVIRONMENTAL RESPONSIBILITY

   
Continue to pursue ways of reducing our use of energy from non-renewable sources +Our primary focus is on reducing energy consumption in our restaurants through operational improvements and advances in available technologies. We continue to explore the feasibility of generating renewable energy onsite at our restaurants through a limited number of small-scale tests.
Enhance our ability to gather more comprehensive and detailed metrics on restaurants’ energy use. This information would enable us to correlate specific energy management practices, equipment and design choices to energy use and cost savings. We could thus better target our efforts and support energy monitoring and control at the restaurant level. +Energy use is strongly impacted by sales, building size, climate, and other variable factors. As a result, comparisons among our largest markets are difficult. However, energy managers in Canada, France, Germany, the UK and the U.S. have developed best-practice processes for gathering and tracking restaurants' energy use data, and a Global Energy Team has been formed to facilitate sharing of these and other best practices.
Improve the environmental footprint of our consumer packaging ++We continue working with our primary packaging supplier, HAVI Global Solutions, to minimize the environmental footprint of our consumer packaging. In 2007, approximately 82% of our packaging in our nine largest  markets was from renewable materials such as paper.
Continue working with our principal packaging supplier, HAVI Global Solutions, and its suppliers to ensure our packaging is designed with the environment in mind, as outlined in the expanded packaging guidelines ++We continue to pursue packaging improvements and are in the process of rolling out a global packaging scorecard to better guide our decision-making. The scorecard builds on best practices from our European and U.S. markets and advice from outside experts.
Evaluate and pursue viable options for a global forestry policy ++Working with our global packaging supplier, HAVI Global Solutions, we are continuing to develop a global sustainable forestry policy for our packaging. Our draft recommendations call for sourcing from certified and other legal sources. We are also exploring traceability options in markets across the McDonald’s System. This work will be coordinated with a broader effort at McDonald’s to develop a global forestry policy that will apply to all of our products.

EMPLOYMENT EXPERIENCE

   
 Continue our exploration of the meaning of diversity in our worldwide markets, with a view toward developing additional guidance and measures  ++ Building on our history of inclusion and diversity, we have continued to further refine our approach to this essential aspect of our business. Gender diversity has been identified as a priority for the company moving forward. Based on feedback from our area of the world (AOW) leadership, we will be establishing "Diversity Champions" in each AOW. These individuals will be responsible for defining what diversity and inclusion mean in their respective markets. In addition, our global definition of diversity has evolved to include additional dimensions such as diversity of thought.
Execute our Restaurant People Strategy to drive higher levels of employee commitment and customer satisfaction ++Our Restaurant People Strategy has provided a framework for many of our local business units to use in prioritizing their initiatives according to defined, and proven, critical success factors.
Define a framework for communicating about employment “under the Arches” that will help us and our owner/operators (franchisees) attract and retain top talent +++The global employment brand framework is currently in its final stages of development and is scheduled for production in late 2008. Global initiatives such as the Voice of McDonald's and the Olympic Champion Crew highlight unique opportunities associated with employment at the restaurant level.
Establish a global talent management plan supported by robust talent identification, succession planning, leadership development and staffing processes Met GoalA global talent management plan and related processes were completed shortly before our 2006 Worldwide Corporate Responsibility Report was issued.
Implement a global total rewards program and increase employee understanding of the rewards available for superior performance Met GoalWe have implemented a global total rewards program at the corporate level. Commitment survey results indicate enhanced awareness and understanding of benefits and rewards available for superior performance among corporate staff.
Ensure a workplace where all employees are respected and valued +++Under McDonald's Global Restaurant Operations Improvement Process (GROIP), restaurants are regularly assessed for people practices. The criteria include an expectation that restaurant managers will treat all employees with respect and courtesy. They also specify an annual employee commitment survey and followup plans to create a positive work environment. Results from our nine largest markets in 2007 indicate that 82% of company-operated restaurant employees would recommend working at McDonald’s to a friend.

COMMUNITY

   
Enhance the reach and influence of World’s Children’s Day and other fundraising efforts to help children in need ++In 2006, World Children's Day raised more than $25 million. This represents an increase of approximately $1.4 million over 2005. In 2007, funds raised were not tracked on a global basis, but in the U.S. market, World Children's Day raised close to $8 million.
Support the growth of Ronald McDonald House Charities, thereby helping more children in need ++Continued to increase awareness and support of RMHC though McDonald's advertising and other forms of communications outreach.