McDonald’s signs agreement to move its supply chain to solar energyMcDonald’s signs agreement to move its supply chain to solar energy

McDonald’s and its North American Logistics Council have signed agreements to purchase renewable energy from Enel North America’s solar project in Grimes County, Texas. As part of the agreement, McDonald’s logistics partners – Armada, Earp Distribution, Martin Brower, Mile Hi Foods and The Anderson-DuBose Company – will purchase solar power from Enel North America’s Blue Jay solar project.

The purchase amount is estimated to be 470,000 megawatt hours of solar power per year, or enough to power over 900 McDonald’s restaurants and save 170,000 metric tons of carbon dioxide emissions. The Blue Jay solar project is expected to be fully operational in 2023 and would support McDonald’s entire logistics supply chain, including warehouses and distribution centers.

"Adding Blue Jay solar to our U.S. renewable energy portfolio is one of the many important steps in our journey to achieving our net zero aspirations," Bob Stewart, McDonald’s SVP and Chief Supply Chain Officer, said in a statement. "This deal is a unique example of how McDonald's and its logistics partners are combining efforts to leverage their reach and scale to tackle supply chain emissions together. We are excited about our collective potential to help address climate change and drive continuous improvement.”

According to a press release, supply chain emissions are categorized as “Scope 3,” and are considered challenging to address because they’re driven by activities beyond the direct control of the company. These emissions account for 75% of all companies’ emissions on average.

"While major corporations are increasingly encouraging and advising their partners on how to reduce their carbon emissions, McDonald's took it one step further by becoming the anchor buyer alongside its suppliers. McDonald's and the NALC recognized early on that collaboration across the supply chain is the only way to effectively address electricity emissions for all logistics suppliers," Danny Fahey, NALC Sustainability Lead and VP of U.S. Strategy at Martin Brower, said in a statement.

Last year, McDonald’s announced its plans to achieve zero carbon emissions by 2050. Since, the company has opened its first net-zero restaurant and signed an agreement with EDF Renewables North America to help generate low-carbon energy in its restaurants.

Contact Alicia Kelso at [email protected]