Fast Food Brands Improve Sustainability but Still Fall Short, FAIRR Report Finds

Set ambitious climate-related goals now and publish a transparent plan with measurable milestones for their chain this year. Public accountability drives engagement with suppliers and customers, so tie a concrete target to science-based benchmarks and share progress with markets and stakeholders.

The FAIRR report finds that, while many brands improved reporting and packaging commitments, progress on emissions is falling in terms of Scope 3 across several markets. In news accompanying the release, analysts highlight ongoing gaps in direct emissions and supplier engagement.

In joint moves, dominos och wendys push engagement with their suppliers and set a new target to increase transparency across the chain for burgers and other items; even so, climate-related trade-offs remain, and they must intensify packaging, energy, and waste measures to satisfy customers and regulators.

To close the gap, companies should publish a detailed road map with clear terms, increase supplier engagement, and set credible targets to cut emissions across the chain; involving suppliers in joint initiatives lowers costs and yields fast gains for them. They must disclose progress in annual reports, including year-by-year updates, and tie incentives to climate-related milestones so that teams and investors share a common aim.

Fast Food Brands Improve Sustainability but Still Fall Short: A Practical Investor Guide Based on FAIRR and Bloomberg Reporting

Recommendation: De-risk your holdings by prioritizing fast-food brands that publish tcfd-aligned climate-related disclosures and demonstrate credible supplier practices, with explicit policies to shrink footprints along the chain. Seek firms that meet joint audits, disclose freshwater use and pollution controls, and publicly track progress against protein sourcing pledges. Favor companies that report on waste, energy intensity, and transport emissions in a transparent, role-specific manner.

FAIRR’s latest findings confirm some progress: giants broaden supplier oversight and set more stringent targets, but many brands still lack credible metrics and third-party verification. Bloomberg reporting shows a subset of companies meet basic tcfd-style governance and disclosures, while the broader group misses line-item emissions data and public policies to govern sourcing. The result is a consumer-facing narrative that masks ongoing pollution and freshwater risks and creates a threat to resilience if climate shocks or policy shifts hit the chain.

Investors can act now with a practical plan: de-risk by pressing boards to adopt tcfd-aligned disclosures and publish independent supplier audits; meet with supplier managers to review chain risk and contingency options; demand metrics on footprints across the entire chain, including freshwater use, pollution indicators, and progress against protein sourcing pledges; require quarterly updates and a clear timetable for execution.

Operational steps for portfolio teams: map the line of suppliers from farms to restaurants, focusing on pizza players like dominos and peers; stress-test portfolios under climate-related scenarios; track covid-19-era disruptions that reshaped supply networks and freshwater risk; compare performance on footprints, protein sourcing, and pollution controls to identify de-risking opportunities.

News and engagement: follow the latest policy developments and joint industry initiatives that push for credible metrics; monitor regulatory signals on freshwater, pollution controls, and climate disclosures; use these updates to inform engagements with management about risk controls, governance, and budget alignment.

Bottom line for investors: concentrate on tcfd-aligned reporting, transparent supplier risk management, and visible progress against pledges; use FAIRR and Bloomberg reporting as a yardstick to separate credible claims from marketing and to de-risk exposure to climate-related risks.

Progress and Gaps in Sustainability Across Fast Food Brands: FAIRR Findings, Investor Demands, and Actionable Steps

To drive change, they publicly publish a plan that accelerates plant-based protein options, expands pizza and burger alternatives, and maps supplier risks across chains; this joint, combined effort, limited by data gaps, will help Aviva and other asset managers assess assets and follow progress annually.

FAIRR findings show progress is slow in key areas: several chains provide governance and supply data, yet scope 3 emissions details are incomplete and disclosure across the entire value chain is limited, which keeps overall risk visibility fragmented.

Investors are pressing for stronger action. Aviva joins a third-party coalition to push tcfd disclosures and annually updated plans; they require added information on pollution controls and supplier risks across burger and pizza items, with clear milestones for all fast-food chains.

Actionable steps include four core moves: expand plant-based offerings across menus, tighten supplier risk assessment with joint audits and added data sharing, publish information publicly and follow the plan with a regular, annual review that translates into measurable risk reduction, and reinforce the assets and work through a joint industry task.

Quantify Progress: metrics to compare emissions, energy use, and supplier data across brands

Recommendation: Establish a unified dashboard that measures scope 1-3 emissions, energy use, and supplier data for each fast-food brand, and benchmark against a science-based trajectory announced by a coalition across markets. This work will follow the same terms, which investors will follow to assess progress.

Emissions framework: Track total CO2e and breakdown by omfattning 1, 2, and 3, with intensity per 1,000 meals and per $1,000 revenue. Disaggregate by meat categories and packaging, and align with science-based targets. When chipotle announced science-based pledges or wendys published pledges, show how those commitments map to upstream and downstream emissions under the chain. Report climate-related risks and detail the plan to reduce them under each owner’s accountability.

Energy metrics: Capture total energy consumption and energy intensity per meal, monitor renewable energy share, and disclose on-site generation. Even modest energy-efficiency upgrades can reduce usage, and further gains come from supplier-side measures. Break out energy use by store type and market; report progress on equipment upgrades and refrigeration efficiency to reduce peak load.

Supplier data: Map key suppliers across chains and measure upstream emissions (Scope 3). Track the percentage of suppliers under audit and the share with science-based targets. Require climate-related data from suppliers and report risks in high-risk markets. The coalition will follow how chains like chipotle and wendys address supplier transparency and risks under their supplier networks, including even small suppliers added to the program.

Governance and reporting: Adopt standard frameworks (GHG Protocol, TCFD, SASB/GRI) and publish methodology. Seek independent assurance for critical data and clearly disclose data gaps. This approach helps giants in the fast-food arena and other companies compare progress on climate-related goals and avoid hype.

Action plan: Start with mapping suppliers and establishing a common data schema across markets; set ambitious yet credible targets; publish quarterly updates and news releases; create a clear plan for addressing risks and pledges; engage owners and operators to drive execution. Please align these steps with a per-chain plan that investors can follow and reference in market announcements.

De-risking Meat Supply Chains: contracts, audits, traceability, supplier diversification, and alternative proteins

Even a modest shift toward binding contracts and transparent data reduces risk across chains, making it easier to manage footprints and meet ambitious targets. Build a coalition of brands to standardize terms and share best practices, while engaging suppliers through public letters and consumer-facing pledges.

1. Contracts and terms
   • Define farm-to-fork traceability requirements with farm origin, batch IDs, transport logs, and data-access rights. Tie these to payment schedules and renewal terms to ensure compliance across the chain.
   • Incorporate audit rights and remediation deadlines in every supplier agreement. Use independent, third-party auditors and require corrective actions within 60–90 days, with escalation up to contract termination for chronic failures.
   • Embed supplier codes of conduct and added transparency clauses. Require letters of commitment and public pledges that connect supplier performance to measurable targets in reducing footprints.
   • Limit concentration risk by mandating multiple qualified suppliers for key inputs in each market; outline clear transition plans and minimum performance criteria to prevent bottlenecks.
2. Revision och verifikation
   • Adopt a risk-based cadence: annual audits for Tier 1 suppliers, with tiered expansion as needed to cover critical inputs such as meat, dairy, and feed components.
   • Require documented corrective action plans (CAPAs) and track progress in supplier dashboards; review results quarterly and publicly report aggregated outcomes without exposing sensitive details.
   • Engage aviva and other risk underwriters to price and manage risk based on traceability data, which helps negotiate better terms and can lower premiums for accountable chains.
   • Publish audit results in a concise format for stakeholders while maintaining data controls; ensure claims about improvement are backed by verifiable evidence.
3. Traceability and data sharing
   • Implement end-to-end traceability with unique lot IDs and a centralized data lake that connects farm records to restaurant-level usage, enabling follow-the-product visibility across the chain.
   • Adopt common data standards to enable cross-brand sharing within a coalition, while protecting commercially sensitive information; use a transparent framework that can be queried by regulators and consumers.
   • Ensure data visibility supports consumer trust: provide aggregated footprints and progress against targets publicly, and respond to consumer letters requesting transparency.
   • Use technology to verify claims: require batch-level data available to customers who ask, and maintain an auditable trail that can be traced back to the farm of origin.
4. Supplier diversification and market resilience
   • Grow the supplier base to reduce reliance on any single source; diversify across regions with different risk profiles and regulatory environments to strengthen resilience against disruptions.
   • Integrate back-up agreements and flexible terms that let brands adjust volumes quickly if prices spike or supply dips occur, without compromising safety or quality.
   • Promote joint improvement plans with suppliers, focusing on animal welfare, feed efficiency, and process improvements that lower overall footprints, while keeping meat quality intact.
5. Alternative proteins and trials
   • Pilot plant-based and cultured options where consumer demand and margins support experimentation; track sales, guest uptake, and supply reliability to determine scale potential for burger and pizza formats.
   • Highlight programs with brands like Chipotle and Wendy’s that publicly pursue reduced meat footprints and expanded plant-based offerings; test pizza menus with meat-free toppings in select markets to gauge appetite.
   • Allocate dedicated budgets to research and development, ensuring a formal task plan that integrates with procurement goals; maintain a balanced portfolio of meat and non-meat options to hedge against volatility.
   • Set clear milestones and publish progress so stakeholders can follow along; please ensure every step from supplier onboarding to product launch is aligned with a consumer-facing message that emphasizes sustainability.
   • Align with unsustainable narratives by actively reducing reliance on high-footprint inputs and communicating the steps taken to reduce impact to markets and customers.

In practice, the approach centers on contracts that codify traceability and audits, robust data sharing that supports accountability, a diversified supplier base, and disciplined investments in alternative proteins. This framework helps chains like burger, pizza, and other casual formats manage risk while meeting consumer expectations and branding commitments, all while curbing environmental impact across the supply chain.

Key Reporting Metrics: Scope 1-3 emissions, water risk, deforestation, and animal welfare indicators

Adopt standardized reporting for Scope 1-3 emissions and water risk annually, and publish deforestation exposure and animal welfare indicators alongside climate-related disclosures. This joint, transparent approach will help meet pledges, inform investment decisions, and reduce the climate-related threat to burgers and other meat options across menus. Brands like dominos can begin by breaking out Scope 3 emissions in a single dashboard and tying progress to supplier contracts.

Define metrics clearly: Scope 1-3 emissions cover direct operations, energy use, and value-chain activities; water risk is assessed for facilities and suppliers in high-stress basins; deforestation indicators track commodities such as palm oil, soy, beef, and cocoa, plus land-use changes and supplier practices. Animal welfare indicators include stocking density, handling, transport distance, journey times, stunning methods, and mortality rates.

Data governance requires annual disclosures from suppliers, consistent terms, and third-party verification where possible. Align dashboards with credible information and ensure global comparability. Invest in digital tools to capture data directly from suppliers and convert it into actionable metrics for procurement teams and communicators.

Actionable steps for brands include setting pledges aligned with FAIRR expectations, engaging with suppliers through joint programs, and expanding plant-based options to meet consumer demand while lowering meat-related emissions. Even small shifts in menu mix, including plant-based burgers, will help reduce Scope 3 intensity over time. Include aviva in risk discussions and use engagement to improve practices, with a focus on terms in supplier contracts that reward progress. Ensure year-over-year transparency and provide information to investors and customers.

Investor Demands in 2025: disclosure expectations, governance changes, and milestone targets

Start by implementing a tcfd-aligned disclosure plan that translates risk into clear, time-bound targets and a transparent view of assets and asset clusters across the value chain.

Elevate sustainability to board oversight with a joint risk and sustainability committee, embed governance changes into compensation, and require third-party assurance to reduce bias in reporting, they said such governance upgrades are essential.

Set ambitious milestone targets for greenhouse gas reductions, protein sourcing, and packaging, with a plan that expands coverage from core operations to the full supply chain, including suppliers in limited sectors, and tracks progress below or above baseline while seeking to increase transparency across markets.

Publish concise letters and data tables investors can compare, including tcfd terms and scenario analyses that show how assets and lines of business–burger and pizza–face supply shocks and greenhouse risks, as many have noted.

Keep markets informed with regular updates that explain governance changes, risk controls, and progress on milestones, so they can see whether management turns the plan into real results; this helps them assess whether risk represents a credible threat to assets and portfolio value, and keeps them informed.

Tie disclosures to sectors across markets, including food-service giants and limited-service chains, and illustrate how each asset and line–protein products like burgers, pizza, and other offerings–shift margins and risk with climate news and supply disruption threats.

Operationalize the plan by assigning clear owners, quarterly checks, and joint reporting that increases transparency and shows they have the work to turn targets into results, delivering credibility to investors.