Icahn Enterprises Activist Presentation Deck slide image

Icahn Enterprises Activist Presentation Deck

THE BOARD IS FAILING TO MANAGE CLIMATE IMPACT & RISKS IN MCDONALD'S' SUPPLY CHAIN McDonald's has climate impacts that can no longer be ignored Five commodities are responsible for more than 75% of the GHG footprint of the U.S. diet: Beef, milk & dairy, pork, chicken and eggs. Beef alone is responsible for over 50% of the GHGS in the diet - and McDonald's is the No. 1 buyer of beef in the world. (Source: Bassi et al) ➤ For over 10 years, MCD has "claimed" to address its environmental impact through empty promises, inconsistent data and scope boundaries, and limited visibility on KPIs and year-over-year progress... all while its emissions continue to rise (Source: Bloomberg) CAWS Sources of Global GHG Emissions American Airlines U.S. Steel U.S. Cement Production BP Norway McDonald's Source: CDP & Bloomberg 0 10 20 40 CO2e (Million Metric Tons) 30 50 60 McDonald's' supply chain has grave risks from climate change scenarios Nearly 40% of growing areas across key global crops (maize, rice, wheat and soybean) are showing yields rates that either stagnate or are collapsing (Ray et al) 1 kg of beef Requires: 8 kg of feed grain "For the top four maize-exporting countries, which account for 87% of global maize exports, the probability that they have simultaneous production losses greater than 10% in any given year is presently virtually zero, but it increases to 7% under 2 °C warming and 86% under 4 °C warming" (Tigchelaar et al) "For the three most important grain crops- wheat, rice, and maize-yield lost to insects will increase by 10 to 25% per degree Celsius of warming" (Deutsch et al) McDonald's has failed to quantify financial implications from a product dependent on at- risk feed grains in its climate risk disclosures McDonald's' supply chain is both dependent on a stable climate while also significantly contributing to the very GHGs that drive impacts, furthering its own precarity. 31
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