A sustainability analysis of global fast food and meal-kit companies
Do fast food companies cut the mustard when it comes to sustainability?
In this analysis, we put the well-known globally listed fast-food companies into the frying pan to see if their sustainability impact is what it claims to be.
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Do fast food companies cut the mustard when it comes to sustainability?
The COVID-19 pandemic has had a mixed effect on Australian dietary habits.
According to an Ibis report, lockdown restrictions have limited consumers’ access to fast food and general takeaway meals, causing a shift to healthier home cooking.
Whether or not the pandemic has driven you back into the kitchen, its highly likely you’ve fallen prey to the lure and convenience of fast food every now and then.
In this analysis we put the well-known globally listed fast food companies into the fry pan to see if their sustainability impact is what it claims to be.
Six of the eight companies analysed scored above the Sustainable Platform database average (over 18,000+ companies listed globally), with a group average score of 63.
The stand out leader in the group is German meal-kit provider HelloFresh, with an SDG score of 94.
Following HelloFresh is American recipe and meal-kit service Blue Apron Holdings, with an SDG score of 78.
Just behind is American chain of ‘casual dining’ restaurants Chipotle Mexican Grill with an SDG score of 74.
Following this is yet another American multinational, Domino's Pizza with an SDG score of 65.
Yum! Brands (KFC, Pizza Hut and Taco Bell), one of the largest fast food restaurant companies, scores 60.
Just above the Sustainable Platform database average sits Canadian Restaurant Brands International (Tim Hortons and Burger King), with an SDG score of 52.
Bellow the SP database average of 50 is
Starbucks Corporation at 41 and McDonald’s Corporation, 39.
All of the companies analysed have controversial industry exposure to fossil fuels (coal, oil and gas) with the notable exception of Chipotle.
Publicly promoting their sustainability efforts, Chipotle has been actively sequestering or reducing their carbon emissions for several years.
As for the other 7 companies analysed, Dominoes has the most fossil fuel exposure of the group, followed unsurprisingly by the meal-kit providers (who are also more reliant on delivery).
Other controversial industry exposure detected in the group can be found in the form of Alcohol (Blue Apron) and Old Growth Forestry (Yum! Brands).
The sector's largest contribution to sustainability is unsurprisingly to the basic needs of food, but also to communication as well as transport.
Because of this, collectively the companies contribute highly to SDG 2: Zero Hunger, as well as SDG 1: No Poverty, and SDG 14: Life under Water and SDG 15: Life on Land.
*All SDG score and data are provided by Sustainable Platform based on data as at 15 October 2020.
Top contributing goals
Of all the 17 SDGs, the well-known globally listed fast food companies analysed contribute most to these below goals:
SDG 1: No Poverty
SDG 2: Zero Hunger
SDG 14: Life under Water
SDG 15: Life on Land
Find out more about the Sustainable Development Goals (SDGs).
Sustainable Platform is a sustainability information service only to institutional investors and doesn’t provide general or personal financial advice.