MCDONALD'S CSR REPORT 2017

 
MCDONALD'S CSR REPORT 2017
McDonald’s
CSR Report 2017
MCDONALD'S CSR REPORT 2017
Corporate Overview                                                                                                               01   Corporate Overview,
McDonald’s Company (Japan), Ltd.                                                                                                      Corporate Information,
              Address:       Shinjuku i-Land Tower, 6-5-1 Nishishinjuku, Shinjuku-ku, Tokyo 163-1339, Japan                           Editorial Policy, Contents
               Phone:        +81 3-6911-5000 (Switchboard)
          Established:       May 1, 1971
                                                                                                                                 02   Top Message
               Capital:      100 million yen
    Line of business:        Management of a hamburger restaurant chain and all associated businesses                            03   QSC&Vと CSR
Number of restaurants:       2,898
                Sales:       490,100 million yen (Total sales by McDonald's-operated and franchised restaurants)                 04   Aiming for
Number of employees:         Permanent employees: 2,255 (excluding officers, part-time employees, etc.)
                             Part-time employees: Approx. 14,000,000 (total of McDonald's-operated and franchised
                                                                                                                                      a Sustainable Society
                                                                                                                                        Food Safety and Security
                             restaurants)
                                                                                                     (As of December 31, 2017)          Employment
                                                                                                                                        Environmental Performance
                                                                                                                                        Social Contribution Activities
Corporate Information
Please visit the McDonald’s Holdings Japan Co., Ltd. official website for information on corporate gover-
                                                                                                                                 08   Sourcing
nance, compliance management, etc.                                                                                                      Partnerships with Suppliers
http://www.mcd-holdings.co.jp/
                                                                                                                                 09   Food
                                                                                                                                        Food Safety and Control
Editorial Policy                                                                                                                        Quality Control at Restaurants
This CSR report covers CSR (corporate social responsibility) activities in five domains addressed by McDon-                             Information Disclosure
ald’s. By disclosing McDonald’s CSR concept including the company’s approach andthe efforts it undertakes,
we are hoping to share these information with many stakeholders that in turn leads to a sustainable society.                     12   People
The contents are focused on CSR and includes URL links to access corporate information found in McDon-
                                                                                                                                        People Business
ald’s Holdings Japan official website.

                                                                                                                                 14   Community
                                                                                                                                        Social Contribution Activities
Scope of Report, etc.
         Organization subject to report: McDonald’s Company (Japan), Ltd.
                                              (partial inclusion of McDonald’s Holdings Company (Japan), Ltd.)
                                                                                                                                 16   Planet
  Time period covered by this Report:         Jan. 1, 2017 to Dec. 31, 2017                                                             Waste Countermeasures
                                                                                                                                        & Environmental Conservation
       Fields covered by this Report:         General domain of social responsibility (management, society and environment)
                                                                                                                                        Energy Countermeasures
Next publication issue schedule date:         March 2019                                                                                & Restaurant Environment
                  Publisher and contact:      Corporate Relations
                                              Shinjuku i-Land Tower 6-5-1 Nishishinjuku, Shinjuku-ku, Tokyo 163-1339, Japan      18   Third-Party Opinion
                                     Phone:   +81 3-6911-5000 (Switchboard)

                                                                                                                                                          CSR Report 2017   1
MCDONALD'S CSR REPORT 2017
Top Message
Based on our policy to put the customer first, we have been making strong efforts to fulfill our social responsibilities around our
underlying business activities; the responsibility as a food service company to secure the quality and safety of all ingredients,
from procurement to product delivery to customers at our restaurants; the responsibility for our “People” including crew and em-
ployees working at our roughly 2,900 restaurants nationwide and those in the office that provide support; and the responsibility
towards the environment based on the idea of “acting in consideration of our planet.” Our customers and the society rightfully
expect us to accept these responsibilities sincerely and to build upon them. It is also our corporate responsibility to leverage
McDonald’s strengths and national scale to contribute to Japanese society. The social activities that we focus on are centered
on children who will lead the future, covering such wide ranging areas as support for Ronald McDonald House, sports and food
education.

Furthermore, as a part of the McDonald’s brand globally, we will be developing an integrated global CSR framework known as
Scale for Good into our local business operations, doing our part to contribute to resolving social and environmental issues and
achieve a more sustainable world.
Currently, with the world’s rapid population growth, expansion of cities and climate change, we are reaching the limits of basic
resources such as water and food. As one of the largest global restaurant companies, we believe it is McDonald’s duty to take
on the most pressing social and environmental issues of the world today. Scale for Good was developed considering the impact
McDonald’s food business has on society and the environment along with what stakeholders including customers and employees
expect from McDonald’s regarding social and environmental issues. However, it’s not something that we intend to carry out by
ourselves. It requires the support of customers, employees, franchisees, suppliers, government agencies and the community
working together in partnership towards a more sustainable society.

It is our strong belief that through a deeper understanding and pursuit of corporate social responsibility, now and for the future,
we will be able to contribute to our many stakeholders and make the world a better place.

Sarah L. Casanova
President and Chief Executive Officer (CEO), Representative Director
McDonald’s Company (Japan), Ltd.

                                                                                                                                      CSR Report 2017   2
MCDONALD'S CSR REPORT 2017
QSC V
                                                                                                                             Quality               As a quick service restaurant, McDonald’s mission
                                                                                                                                                   is to improve “Q, S, C” and develop unique

                                                                                                                             Service               “V” through infinite challenge and constant
                                                                                                                                                   improvement to provide customers with the

                                                                                                                             Cleanliness           best restaurant experience. This philosophy was

                                                                                     &
                                                                                                                                                   introduced by Raymond Albert Kroc, the founder
                                                                                                                                                   ofMcDonald’s and remained unchanged.
                                                                                                                             Value

                                                                                                                                         CSR
Enhancement of QSC&V means wemust fulfill various corporate social responsibilities (CSR) as well. We divide CSR into five
categories and listen to the voices of stakeholders and society in each of them, endeavoring to take the best and honest action.

             Sourcing                   Food                  People               Community                  Planet

These five categories include 'Sourcing' or relationship with suppliers in obtaining product materials as well as procurement process,
'Food' or quality control to ensure product safety and enjoy meals with peace of mind, 'People' that is based on our philosophy of
"individual growth promotes corporate growth", 'Community' with the idea of "we have an obligation to give back to the community         Corporate Social Responsibility
that gives us so much", the basis of maing contributions to our society, and 'Planet' based on the idea that environmental
consideration is part of corporate social responsibility.

                                                                                                                                                                                    CSR Report 2017    3
MCDONALD'S CSR REPORT 2017
Aiming for a Sustainable Society                                                          Food Safety and Security

             Information disclosure "Mieru McDonald's Quality"
                                                                                                         Information on allergies,
     Commitment to                                   Journey of                                            nutritional issues and                       Nutritional balance
      100% quality                                 food materials                                         producing countries of                               check
                                                                                                               raw materials                              ※ Renewed in December 2017

http://www.mcdonalds.co.jp/safety/          http://www.mcdonalds.co.jp/safety/                              http://www.mcdonalds.co.jp/safety/        http://www.mcdonalds.co.jp/quality/
          good_quality/                                 factory/                                                     allergy_Nutrition/                   basic_information/check.php

             Initiatives related to food materials
             Initiatives on                                             Initiatives on
           improving quality                                       food safety and security                                               Actions on trans fatty acid

                                                                                                          McDonald’s Japan
                                                                  McDonald’s Japan local standards         local standards
                                                                                                          Relevant laws and
                                                            Relevant laws and regulations in Japan
                  180

                                                                                                         regulations in Japan
                  ℃

                                                                    McDonald’s global standards      McDonald’s global standards

  http://www.mcdonalds.co.jp/safety/taskforce/              http://www.mcdonalds.co.jp/safety/food-safety/                              http://www.mcdonalds.co.jp/safety/trans_fat/

                                                                                                                                                                                                                           Food Safety Summit
             Quality control system
                                                                                                                                                                                                   3rd Food Safety Summit was held in Tokyo on August 8, 2017 Attended by farmers,
   Number of food                                   Number of                                         Number of factory                          Number of serious incidents                       business partners and restaurant staff supporting McDonald's foods With the theme
    materials in                                 supplier factories                                  audit visits each year                          on initial safety
 McDonald's products                                                                                                                                                                               of "From turnaround to growth", three commitments were adopted with the goal of
      2017                                             2017                                                                  2017                              2017                                offering an even more comfortable restaurant experience with peace of mind
                                                                                                                                                                                                   http://www.mcd-holdings.co.jp/news/2017/csr/csr0831b.html

  approx.   285                                   approx.   100                                          approx.                400                            0
                                                                                                                                                                                                                                                               CSR Report 2017         4
MCDONALD'S CSR REPORT 2017
Aiming for a Sustainable Society                  Employment

                                                             2,255
                                                                                                                                  Ratio of female
                  2017                                                                                                            restaurant managers
                                 Company-wide employees
                                                                                                                                  24.5      %
                                   Male employees   1,583                     Female employees   672
                                                                                                                                                Ratio of female
                                                                                                                                                managerial employees
                                                                                                                                                (director and above)

                                                                                                                                                15.2       %

                                           70.1                                        29.9
                                                                                                                                  Female officers
                                                    %                                            %
                                                                                                                                  8.0   %

                         2017                               2017                                        Number of reduced                       2017
                                                                                  2017                   working hours for
                Number of crew                 Employment ratio of people                            child care program users             Company-wide
                  members                           with a disability                                                                     overtime hours
                                                                             Number of childbirth

    approx.   140,000                                   2.23       %
                                                                              and child-rearing
                                                                            support program users

                                                                                                            108
                                                                                   49                                                        16.8          hr

As of December 31,2017
                                                                                                                                                    CSR Report 2017    5
MCDONALD'S CSR REPORT 2017
Aiming for a Sustainable Society                                                        Environmental performance
                                                 2017                                                                                                                               2017
                                                     System-wide
Food waste recyclling rate                           waste amount                     Food waste amount                                                                 Energy consumption

                                                                                        88.4kg 31.4g

     50.1
                                                                                                                                                                                                                              Electricity

                                                                                                                                                                                                                          488.7

                                                                                                                                                   211,624
                                                    127,000              tons
                                                   (includes recycling amount)
                                                                                                                                                                                                                                       kwh

                                                                                                                                                                                                                   Gas                       Water

       (Food-service industry
                                %
                                                                                        ¥¥¥¥¥                                                                                                                  25.4      m2
                                                                                                                                                                                                            city gas equivalent
                                                                                                                                                                                                                                            4.0 tons
          average:24%)                                                                  ¥¥¥¥¥                                                                               kl (Crude oil equivalent)
             (FY2014)                                                              1 million yen in sales               per customer
                                                                                    Food service industry target   108kg/1million yen in sales                                                                                                 1,000
                                                                                                                                                                                                                                                  people

                                           2017                                                                                                                                 2017
                                                                                                                                                              Packages and containers with

                                                                                                                                                 71.1
       Enhanced dining environment All restaurants with
         non-smoking environment from August 2014                                                                                                               FSC® forest certification

                                         100                         %
                                                                                                                                                         %
                                                                                                                                                                                              expected to achieve    100           % by     2020

TOPICS                          McDonald's Wins "Food Industry Mottainai (wastefulness reduction) Awards by the Director-General of Food Industry Affairs
                                Bureau, Ministry of Agriculture, Forestry and Fisheries" in recogniation of 'MFY' or Made-For-You operation system http://www.mcd-holdings.co.jp/news/2017/release-170309a.html

                                                                                                                                                                                                                         CSR Report 2017                   6
MCDONALD'S CSR REPORT 2017
Aiming for a Sustainable Society                                                   Social contribution activities

      Charitable activities                                                          Sports support                                         Community contribution                                                  Educational support
(in support of Ronald McDonald House)
                                                                                                                                                 activities                                                        (Food educational support)
    http://www.mcdonalds.co.jp/company/community/donald/                        http://www.mcdonalds.co.jp/company/community/sport/           http://www.mcdonalds.co.jp/company/community/community_              http://www.mcdonalds.co.jp/company/community/ne_mc_
                                                                                                                                                                       relations/                                                        support/

                          2017                                                                     2017                                                             2017                                                          2007-2017
    Donation amount collected                                                          Junior Baseball                                       Number of security whistles                                       Number of classes using the
      at restaurants in 2016                                           (Takamadonomiya Cup All-Japan Rubber                                         giveaways                                                    "Food Education Time"
                                                                          Baseball McDonald's Tournament)                                                                                                         educational materials

                                                                        Number of participating teams Approximately

  70,020,000                                               yen
                                                                       12,000                              teams across Japan                        873,148                                                                   6,158
       Number of family users                                                             U-12 football                                                   Number of                                            Number of children and school
                                                                         (Japan U-12 Football Championship)                                         Hello Ronald program                                        student attended the class

                                                                        Number of participating teams Approximately

                 7,453                                                    9,000                           teams across Japan                                    744                                                      175,248
  TOPICS                                      "McDonald's Japan food educational support program" received the "Minister's award from the Ministry of Education, Culture, Sports, Science
                                              and Technology for the Outstanding Promotion of "Early to Bed and Early to Rise, Have Breakfast" Program in 2016              http://www.mcd-holdings.co.jp/news/2017/csr/csr0323b.html

                                                                                                                                                                                                                                                CSR Report 2017          7
MCDONALD'S CSR REPORT 2017
Partnerships with Suppliers
Based on McDonald's policy of "food safety takes priority over everything else", continuous efforts are being made to
establish the world's best food control system. This applies equally to our suppliers from production, processing and
distribution of food materials. Partnership with our suppliers has important significance to ensure this. This partnership is
built around "Suppliers Code of Conduct" as well as "Code of Conduct Program", an audit program by a third-party institu-
                                                                                                                                                                         Sourcing
tion, and "Suppliers Quality Management System" for the purpose of implementing high level of quality management and
sanitary control.
http://www.mcdonalds.co.jp/safety/food-safety/

                                                                                                                    Partnership
                                                                                                                  Supplier Code of Conduct
                                                                                                                    Compliance with all labor standards, laws and                 Implementation of
                                                                           Compliance with all
                                                                                                                  regulationsProhibition of child labor, forced labor,            suppliers’ voluntary
                                                                           applicable laws and
                                                                                                                    discrimination and/or abuseRequirements for                inspections, McDonald’s
                                                                                standards
                                                                                                                           remuneration and social service                     rights to conduct audits

                                                                                                                  Code of Conduct Program
                                McDonald's                                                                                                                                                                   Supplier
                                                                                                           Quality Management Program
                                                                                    Production                                    Process plant                                  Logistics
                                                                                       GAP                                            SQMS                                        DQMP
                                                                      agricultural production process control, HACCP           Quality Management Program                Logistics Quality Control Program
                                                                              (animal health and welfare, etc.)

                                                                                                                                                                                                                        CSR Report 2017   8
MCDONALD'S CSR REPORT 2017
1                                                                                                                                                                               3
                                                                                                                                            Stable global-scale
                                                                                                                               procurement of all raw materials,

                                                                                                                                                                              2
                                   McDonald s Japan
                                    local standards
                                Relevant laws and
                                                                                                                                    including domestic sources
                               regulations in Japan
                                McDonald s global
                                   standards

      McDonald’s establishes global standards of quality, safety and sanitation.
      Inaddition, McDonald’s Japan adopts local standards based on domestic
      lawsand regulations, as well as scientific expertise and social environments.

McDonald's standards in terms of product                                                                                                                                                                                                           Social responsibility and
quality, safety and sanitation                                                                                                                                                                                                                sustainable corporate actions
                                                                                                                                                                                                                                                 including Code of Conduct

Food           Seamless quality and sanitation control from
                                                                       Food Safety and Control
                                                                       McDonald's food safety and control has
                                                                       http://www.mcdonalds.co.jp/safety/food-safety/
                                                                                                                              4 features to ensure safe and high-quality products.
                                                                                                                                                      Standards are placed in each stage to realize seamless quality and sanitation control from production, processing plant,
                                                                                                                                                      logistics to restaurant. Also, internal inspection including a self-check system and external inspection by a third party

4
               farm to restaurant, including traceability                                                                                             institution are being implemented. Further, traceability is established to trace history of the entire production process.

                                            Production sites                                                            Processing plant                                                             Logistics                                                                         Restaurants
                                                (farm)

                      Standards    GAP   (Good Manufacturing
                                         Practice)             HACCP   (Hazard Analysis and
                                                                       Critical Control Point)                            SQMS          (Service Quality
                                                                                                                                        Management System)                                     DQMP         (Distributor Quality
                                                                                                                                                                                                            Control Program)                      HACCP   (Hazard Analysis and
                                                                                                                                                                                                                                                           Critical Control Point)   GMP     (Good Manufacturing
                                                                                                                                                                                                                                                                                             Practice)             SSOP   (Sanitation Standard
                                                                                                                                                                                                                                                                                                                          Operating Procedures)

                      Inspection                                                                     McDonald's inspection / Third party inspection expert institution        McDonald's inspection / Third party inspection expert institution                                      External sanitary inspection

                                                                                                                                                                                                                                                                                                    CSR Report 2017                        9
Food

                                                                               HACCP
                                                                      Sanitary control system to minimize risks
                                                                               that affect food safety

              GMP                                                                                                                                                     SSOP
                                                                                                                                                            Procedures for hand-washing, handling
   Control standards to maintain buildings and                                                                                                              of raw materials and execution sanitary
           facilities at clean conditions.                                                                                                                          and correct operations

                                                                                       External
                                                                                       sanitary
                                                                                      inspection

Quality Control at                               "Food safety takes priority over everything else" is the McDonald's philosophy. To achieve this, restaurants are implementing a proprietary sanitary control system. Also, sanitation
                                                 inspection is conducted by a third-party institution. Sanitary control system is based on HACCP, GMP and SSOP.

Restaurants
                                                 Food Safety Checklist and Planned Maintenance Calendar (PMC) are used to ensure the implementation of these standards and to always keep the restaurant at optimal conditions.
                                                 Our responsibility is to always provide products of assured quality to our customers and offer the best-in-class restaurant experience with peace of mind.
                                                                                                                                                                                                             CSR Report 2017 10
Food                                                                Allergy information
                                                                                                                              McDonald’s Wonder Explorers                -Secrets of Tastiness-

Information
                                                                              Detailed inspection results of all raw                                                         From kids to
                                                                              materials are disclosed and are constantly
                                                                              being updated, including changes in                                                            adults, McDonald's
                                                                              food ingredients specification and cross                                                       commitment on

Disclosure                                                                    contamination during the production
                                                                              and/or cooking process. A list of seven
                                                                              allergens for which labeling is mandatory
                                                                              and twenty allergens for which labeling
                                                                                                                                                                             foods and tastiness
                                                                                                                                                                             are illustrated in the
                                                                                                                                                                             original movie series
                                                                              is recommended by the Food Labeling Act
McDonald’s official website includes "Mieru                                   is disclosed. Also available are "Allergen                                                     with so much fun.
                                                                              information list (PC website)" and
McDonald's Quality", a disclosure of information on                           "Allergen Search" to find out the use of
                                                                              any allergens in raw materials.
food quality to enjoy our foods with peace of mind.
Product information on country of origin, allergy and
nutritions are always updated. Customers can use the
QR code printed on product packages for quick access
                                                                              Nutritional information
of product information.                                                       This information is disclosed in the form
Also, the "McDonald’s Wonder Explorers - Secrets                              of numerical values of nutritional analysis
                                                                              based on Nutrition Labeling Standards
of Tastiness" webpage contains McDonald's food                                using standard product specifications and
                                                                              cooking. Some food materials are using
ingredients and our commitment to tastiness.                                  quotations from the "Standard Tables
                                                                              of Food Composition in Japan - 2015 -
                                                                              (Seventh Revised Version)" (Ministry of
                                                                              Education, Culture, Sports, Science and
                                                                              Technology. "Nutritional Information List
                                                                              (PC website)" as well as "Nutritional
                                                                              Balance Check", an easy way to find
                                                                              out the individual's daily energy and
                                                                              nutritional needs according to gender,
                                                                              age and physical activity level, based on
                                                                              consumption of a single or set menu are
                                                                              provided as well.

                                                                              Country of origin                               Nutritional balance check (revamped in December)
                                                                              information
                                                                              Disclosure of information about the           This food education content is intended to support a healthy, balanced
                                                                              production countries of raw materials and     diet on a daily basis. You can check the amount of daily energy and
                                                                              the final processing countries.
                                                                                                                            nutritional needs covered
                                                                                                                            by McDonald's menu
                                                                                                                            items, read nutritional
                                                                                                                            advice from a nutritionist
                                                                                                                            and learn more about
                                                                                                                            nutritions. These useful
              QR code is a registered trademark of Denso Wave Incorporated                                                 tools are provided to
                                                                                                                            select menu items and
                                                                                                                            have a balanced nutrition.
                                                                                                                                                                        CSR Report 2017           11
People                                                                                                                           People Vision
                                                                                                                   Which is to become the best employer in any town
                                                                                                                          Around the world, is upheld on a global scale towards each and
                                                                                                                                      every person working at McDonald's.

People Business                                                                                                             People Promise
It is the "people" that supports corporate growth. This approach has not been changed since the
foundation of our business.
                                                                                                        We value and cherish our people, including their growth and the
                                                                                                                           contributions they make.
As long as you’re green, you’re growing. As soon as you’re ripe, you start to rot.                          McDonald's promise to all staff to achieve "People Vision"; that's our "People Promise".
                                                                                                    We respect each and every one of them by offering growth opportunities, enhancing their skills, developing
Ensure that individuals working at McDonald's will always stay green and keep growing...this
                                                                                                                                   leaders and rewarding their performance.
philosophy is still alive in all areas of McDonald's business in various forms.
http://www.mcdonalds.co.jp/recruit/fresh/mcdonalds/index.php5

                                                                                                  Employee Value Proposition: EVP
                                                                                                           At McDonald's, we provide many more offerings to our people
                                                                                                                          according to what they value.
                                                                                                     Employee Value Proposition (EVP) is a set of offerings and values that our people receive in return for the
                                                                                                                                       work and commitment they provide.
                                                                                                          We have a policy of providing support to what our people value the most and are focused on
                                                                                                                               implementing programs to offer even more values.

                                                                                                                                                                                                        CSR Report 2017   12
Our restaurants proactively hire people from various backgrounds, including
                          Educational Institution Hamburger University                                            students, housewives, senior citizens, foreigners and person with disabilities,
                                                                                                                                                                                                                                                                       Work environment                                                            work-life balance

                                                                                                                  offering a people-friendly work place respecting cultural diversity. Orientation
                                                                                                                  and training programs are integrated into a single, easy-to-understand booklet
                                                                                                                  that uses many images and videos. Also, a study style with a combination of
                                                                                                                  workbooks, image & video materials, discussion and hands-on training is provided
                                                                                                                  to maximize learning opportunity and growth at restaurants, aiming to deliver a
                                                                                                                  valuable part-time work experience.

                                                                                                                    Employment and people development at restaurants
McDonald's has global systems with universal standards. One of them is Hamburger
University, a professional education institution utilizing the latest educational theory                                                                                                                                           McDonald's is working on providing a friendly work place for individuals with different personality
and methods to promote people growth and system development. Various educational                                                                                                                                                   and lifestyle, such as the introduction of flex time and work from home program, promotion of
programs, training sessions and tools are available for our people in any position, from                                                                                                                                           taking annual paid vacation, foster and support women to take active roles & work-life balance
crew to management.                                                                                                                                                                                                                (includes nursing and child rearing), as well as the introduction of online people development
http://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice38.php5                                                                                                                                                                    program, enhancement of talent management and work efficiency.
                                                                                                                                                                                                                                   https://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice01.php5

Performance development system (PDS) is an employee                                                                                                              McDonald's believes that building an organization where
performance evaluation program, designed to support
                                                                                         Career development                                                      each individuals can work in a lively manner and play                                                                                    AJCC                                           ALL JAPAN CREW CONTEST

performance and growth of individual staff. PDS is                                                                                                               an active role will enhance the corporate strength.
consistent, easy-to-understand, fair and offers feedbacks                                                                                                        This includes showing respect to all kinds of diversity
on performance and development goals. Also, it provides                                                                                                          regardless of gender, age, nationality, career backgrounds
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                                                                                                                                                                 http://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice15.php5
http://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice06.php5

                                                                                                                                                                                                                                                                   AJCC is a program that recognizes the top of the top crew members
                                                                                                                                                                           Diversity and Inclusion                                                                 in Japan, where crew members show their acquired skills from the
                                                                                                                                                                                                                                                                   day-to-day training at restaurants. This program, designed to offer a
                                                                         McDonald's does not have a fixed career path. We offer various                                                                                                                            restaurant experience that exceeds customer expectations, started in
                                                                         growth and career development opportunities to take up challenging                                                                                                                        1977 and now in its 41th time this year.
                                                                         job and providing career development. For example, personnel                                                                                                                              AJCC promotes training programs to develop the entire crew
                                                                         transfer is based on a strategic approach of developing and                                                                                                                               members. By raising the skills of each participating crew members,
                                                                         positioning people, and 'internal job posting system' is in place to                                                                                                                      the AJCC supports the realization of "People Promise" and the
                                                                         post jobs within the company. We are also proactively looking forand                                                                                                                      philosophy of "individual growth promotes corporate growth".
    Employee performance                                                 hiring permanent employees fromamong the crew.
     evaluation program                                                  http://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice28.php5
                                                                                                                                                                                                                                                                   http://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice05.php5

                                                                                                                                                                                                   People Business                                                                                                                       People
                                                                                                                                                                                                                                                                                                                                         CSR Report 2017                                                                   13
Charitable activities
McDonald’s supports “Ronald McDonald House” to assist sick
childrenand their family, and also engages incharity activities
to further cultivate aculture of charity in Japan.                          Community
                                                                            Social Contribution Activities
                Sports support
                With the purpose of healthy developmentof children’s        Give our children a happier future
                body and mind, McDonald’sis involved in a wide range of     McDonald's practices social contribution activities in various ways, which are centered on charitable activities, sports support,
                sportssupport activities to supportthe hopes, dreams and
                                                                            educational support and community contribution activities.
                passions of ourchildren.
                                                                            http://www.mcdonalds.co.jp/company/community/

                     Educational support
                      McDonald’s offers educational supportfocusing                             Charitable activities
                      on food education to help children gain accurate
                                                                                     Support to Ronald McDonald House is the main focus
                      knowledge on foods and cultivate the right eating
                                                                                     of our charitable activities, which is provided through
                      habits, with the hope of assisting as many children
                                                                                     a donation box setup at front counter of McDonald's
                      as possible to discover thepleasure of eating.
                                                                                     nationwide restaurants, "McHappy Day" and other
                                                                                     charitable events. The entire construction and operation
                 Community contribution activities                                   costs of the 12 Ronald McDonald's House in Japan are
                                                                                     supported by local volunteers, and McDonald's Japan is
                 McDonald’s is committed to “beinga good neighbor
                                                                                     proud to be part of the companies that provide support.
                 in local communities”and actively participate in
                 communitycontribution activities to create safe
                 andsecure communities, including town beautification,
                 clean-up activities and crime prevention activities.

                                                                                                                                                                       Ronald McDonald House provides accommodation
                                                                                                                                                                       to support hospitalized children and their
                                                                                                                                                                       families far-away fromtheir homes. Located in 12
                                                                                                                                                                       areas in Japan, families can stay in these Houses
                                                                                                                                                                       for a 1,000 yen donation per person per night.

                                                                                                                                                                                        CSR Report 2017               14
Social Contribution Activities Community
                                                                                                                                                                                                                                                                http://www.mcdonalds.co.jp/company/community/

                                                                   Junior baseball and U-12 football activities are our main focus of support. In addition to tournaments,
          Sports support                                           McDonald’s assists inaugural meetings by inviting prefectural representative teams to local McDonald's
                                                                   restaurants and offering a free giveaway of original sports notebook.
                                                                                                                                                                                                                       Educational support
                                  Junior Baseball                                                                                      U-12 Football                                                     Various food education programs are conducted in elementary, junior high and
                                                                                                                                                                                                         high schools according to growth stage, provided in the form of food education
McDonald's supports the "Takamadonomiya Cup All-Japan Rubber                                       Since 2011, McDonald's is
Baseball McDonald’s Tournament", the biggest tournament for junior                                 supporting the "Japan U-12 Football
                                                                                                                                                                                                         classes to hands-on practice at McDonald's restaurants.
baseball players and known as the "Koshien for grade school children".                             Championship", the biggest
As part of the support, tournament poster is displayed at McDonald's                               tournament for grade school children
restaurants, introduce prefectural representative teams on SNS, arrange                            who are part of the Japan Football
inaugural meetings at local restaurants and offer a free giveaway                                  Association Type 4 team (U-12).
                                                                                                                                                                                                                                   小学校                          中学校                       高等学校
original sport notebook to junior baseball players.
                                                                                                                                                                                                                            マックアドベンチャー                        職場体験                     インターンシップ
                                                                                                                                                                                                                                                                                       アドバンス・
                                                                                                                                                                                                                                              食育プログラム                                  インターンシップ

                                                                                                                                                                                                         Our main activity centers around educational
                                                                                                                                                                                                         support, focusing on food education to help children
                                                                                                                                                                                                         gain accurate knowledge on foods and cultivate the
                                                                                                                                                                                                         right eating habits, with the hope of assisting as
                                                                                                                                                                                                         many children as possible to discover the pleasure
                                                                                                                                                                                                         of eating. Developed in 2005, "Food Education
                                                                                                                                                                                                         Time" educational materials are used in supporting
                                                                                                                                                                                                         food education classes conducted at schools.

                                                                                                                          Local emergency                                                                           Security whistles                                 Child-rearing support

          Community                                                                                                           shelter
                                                                                                                            for children

          contribution                                                                                                      We work together with
                                                                                                                            local police departments
                                                                                                                                                                                                           Starting school brings a new and wider
                                                                                                                                                                                                           scope of activity for children. To support their
                                                                                                                                                                                                           safety, we work together with the local board
          activities
                                                                                                                            to create safer towns for
                                                                                                                            our children.                                                                  of education and police departments to give
                                                                                                                                                                                                           away security whistles to first graders across
                                                                                                                                                                                                           Japan every year.
McDonald's is engaged in locally-rooted                                                                                                                                                                                                                           We participate in
activities including town beautification and
                                                                      Hello Ronald                                                                                                                                                                                the “Child-rearing
                                                             This nationwide program helps                                                                         Clean Patrols                                                                                  support passport
child-rearing programs.                                                                                                                                                                                                                                           project”, promoted
                                                             children learn rules and manners in                                                        Our nationwide restaurants are engaged
                                                             everyday life.                                                                                                                                                                                       by the Japanese
                                                                                                                                                        in town beautification activities. Also, we
                                                                                                                                                                                                                                                                  government and
                                                                                                                                                        proactively participate in clean-up activities
                                                                                                                                                                                                                                                                  local municipals.
                                                                                                                                                        led by local municipals and citizen groups.

                                                                                                                                                                                                                                                                           CSR Report 2017             15
Planet
                                                                                                                  Waste Countermeasures &
                                                                                                                  Environmental Conservation
                                                                                                                  Reducing the amount of waste is the basis for waste countermeasures; in line with this, we use raw materials with less environmental impact and ensure
                                                                                                                  environment protection. Made-For-You system (made to order) in menu production and yield control with numerical targets in raw material management are being
                                                                                                                  implemented to ensure the above basis. Also, nearly all the used cooking oilare recycled and review is being undertaken with distributed recycling in various ways.

                                                                                                                                        Waste amount in 2017

             System-wide waste amount                                                                                       Amount of waste per 1,000 customers                                                                                    Environmental conservation

                            127.0                                                                                                                          93.9
                                                                                                                                                                                                                                          With paper containers and packages, we are aiming to complete the transition to
                                                                                                                                                                                                                                          paper packages and containers with FSC® forest certification by the year 2020.
                                                                                                                                                                                          g/customer                                      71.1% of all paper containers and packages are FSC certified as of the end of 2017.
                                                                          kt/year                                                                 +1.3% compared to previous year                                                         http://www.mcdonalds.co.jp/company/community/eco/

                           +9.9% compared to previous year

                                                                                                                                                                                                              34.2         g

                                                                                                                                           31.4                                                          5.2% compared to previous year

   42.4
                                                                                                                                                       g
                                                                                                                                     4.3% compared to previous year
                       kt/year
                                                                                                                                    -
                                                                                                                                                                                                              Others
  3.7      % compared to previous year                                                                                                     Food
                                                                                                                                           waste
            Food
            waste
                                                                               46.3            kt/year
                                                                                                                                                                24
                                                                                                                                                                3.0
                                                                                                                                                                    .4        g
                                                                                                                                                                       % compared to previous year
                                                                              14.3  % compared to previous year

                                  33
                                   11.9
                                        .0     kt/year
                                          % compared to previous year
                                                                                    Others                                                                      Paper
                                                                                                                                                                waste                                                                                Ecosystem considerations
                                                                                                                                                                                                                                          Polyphenoda pollack, a raw material of Filet-O-Fish, is a natural fishery resource, and
                                         Paper                                                                                                                                                                                            therefore we use only the fish caught in the fishery as raw materials in consideration
                                         waste                                                                                                                                                                                            of sustainability to prevent the depletion of natural resources.
 Food waste
recycling rate                                                                                                                                                                           3.9         g
                                                                                                                                                                                       5.4% compared to

50.1
                                                                                                                                                                                             previous year

                                                                                                                                                                                    Plastic waste

   Food-service industry
                             %                            512.8.3       kt/year
                                                                    %compared to
average:   24% in FY2014                                            previous year

                                                          Plastic waste                                                                                               per customer
                                                                                                                                                                                                                                                                                                CSR Report 2017             16
Planet                             Energy Countermeasures & Restaurant Environment
                                   When it comes to environment, McDonald’s follows the philosophy of “Think and act for our planet.” Specifically, it means to keep an eye on our business and minimize
                                   unnecessary impact to our environment. We are taking two different initiatives to ensure the above; programmed energy management at restaurant level and capital investments
                                   in introducing energy-saving and high-efficiency equipment. These initiatives are linked together and being implemented continuously through the PDCA cycle.

                                                                                    Energy usage in 2017
                   System-wide energy usage per category                                                                        Energy usage per 1,000 customers across different categories

     Electricity                                                                                                                              Electricity

   661.7                                                                      Water                                                            488.7                                                                                  Water
                                                                                                                                                                                      Gas
                                                                                                                                                                                                                                      4.0
                                                                         547.5
                                                                                                                                                     kWh
                                           Gas
                                                                                                                                                                                  25.4
      million kWh/year                                                                                                                        -5.4% compared to                                                                             m3

                                      34.4
                                                                                                                                                    previous year
   +2.6%previous
          compared to
                 year                                                       million m3/year                                                                                             m3
                                                                                                                                                                                                                                   0% compared to
                                                                                                                                                                                                                                       previous year
                                                                                                                                                                                 8.1% compared to
                                       million m3/year                  +10.8%previous
                                                                                compared to
                                                                                       year
                                                                                                                                                                                     previous year

                                    +17.0%previous
                                            compared to
                                                   year
                                                                                                                                                                                 1,000 people
                                                                         Energy consumption in basic units                                                                                       Restaurant environment
                Entire energy consumption                                   Crude oil equivalent                                                                                    To provide a comfortable dining experience to our customers, air-

                                                                            0.2657
                                                                                                                                                                                    conditioning control is made by judging the ambient conditions. Also,
                                                                                                                                                                                    no smoking policy was adopted at McDonald’s restaurants nationwide

211,624
 Crude oil equivalent                                                                                     kl/1,000 register counts                                                  in August 2014. This would provide cleaner air and better dining
                                                                                                                                                                                    environment to our health for all customers including family with
                                                                                       -2.5        compared to previous year
                                                                                                                                                                                    children.

                                                                                                         Greenhouse gas emissions                                                   http://www.mcd-holdings.co.jp/news/2014/release-140815a.html

                                                           kl/year                                              CO2 emissions equivalent

                         5.8   compared to previous year
                                                                                                               56,037  -1.3
                                                                                                                                                   t-CO2
                                                                                                                                                   /100 million register count

                                                                                                                                     compared to previous year
                                                                                                                                                                                                                                        CSR Report 2017   17
A third-party opinion on
     CSR Report of McDonald’s
     Company (Japan), Ltd.
As declining birthrate, aging population and regional depopulation are becoming evident in Japan, limitations in food and
resources due to global population increase and climate change are producing a heightened sense of crisis. All these suggest an
urgent shift to a sustainable society. As a global restaurant company, McDonald's announced "Scale for Good"in January 2018,
followed by McDonald's Japan's top message regarding its commitment to contribute to the earth's future. I look forward to
witnessing the works with high motivation.

I read McDonald's Japan's CSR Report. Based on the philosophy of "quality, service, cleanliness and value", McDonald's Japan
states to fulfill its social responsibility in the five areas of "raw material procurement, food and quality control, people, social
contribution and environment." Also, as a restaurant company close to consumers, McDonald's Japan is committed to food
                                                                                                                                       Yuko Sakita
safety and security, discloses information in a "visible" way to the public, and the CSR report to easy to understand, and these       Journalist and Environmental counselor
provide confidence to the company.                                                                                                     Chairwoman of NPO GENKI Net for Creating a
                                                                                                                                       Sustainable Society
In terms of environment, the switch from preparing foods in advance to preparing foods after receiving orders greatly reduced          Director representative of NPO Shinjuku Environmental
the amount of food waste, and as a result, the company received the "2017 Food Industry Mottainai (wastefulness reduction)             Activities
Awards." This shows that balancing environment and economy is possible by utilizing wisdom and innovative ideas. In the "2030
Targets for Sustainable Development (SDGs)", the United Nations aims to reduce the amount of food loss and wastes by 50%. I
expect McDonald's Japan to lead the society in this regard. Also, I hope the company will continue to engage in food education,        NPO GENKI Net for Creating a Sustainable Society
                                                                                                                                       http://www.genki-net.jp
crime prevention, sports, support in sickness and other locally-rooted social contributions that support our children, the future
generation.                                                                                                                            NPO Shinjuku Environmental Activities
                                                                                                                                       http://www.sean.jp
Lastly, the decline in CO2 emissions was marginal, but improvement was seen in the areas of wastes and energy. I truly look
forward to seeing the company making greater challenges toward "Scale for Good" and other initiatives for a sustainable future.

                                                                                                                                                                                     CSR Report 2017   18
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