Arcos Dorados Holdings

Arcos Dorados Holdings Climate Commitments and Emissions Overview

Headquartered in Argentina, Arcos Dorados Holdings, a prominent player in the Full-Service Restaurants industry, has established several climate commitments aimed at reducing its environmental impact. The company is working towards reducing its greenhouse gas (GHG) emissions across its operations and supply chain.

Emissions Data:

• 2025: Arcos Dorados reported total GHG emissions of approximately 5.42 billion kg CO2e. This comprised about 98.97 million kg CO2e from Scope 1 emissions, approximately 101.36 million kg CO2e from Scope 2 emissions, and roughly 5.22 billion kg CO2e from Scope 3 emissions.
• 2024: Total emissions for 2024 were approximately 5.99 billion kg CO2e, with Scope 1 at about 111.18 million kg CO2e, Scope 2 at approximately 106.51 million kg CO2e, and Scope 3 at around 5.78 billion kg CO2e.
• 2023: In 2023, the company's total GHG emissions were approximately 5.72 billion kg CO2e. This included Scope 1 emissions of about 141.79 million kg CO2e, Scope 2 emissions of approximately 107.41 million kg CO2e, and Scope 3 emissions totalling around 5.47 billion kg CO2e.
• 2022: Arcos Dorados recorded total emissions of approximately 5.61 billion kg CO2e in 2022. Scope 1 emissions were about 175.04 million kg CO2e, Scope 2 emissions approximately 103.31 million kg CO2e, and Scope 3 emissions totalled around 5.33 billion kg CO2e.
• 2021 (Baseline Year): In 2021, total emissions were approximately 4.86 billion kg CO2e, consisting of Scope 1 emissions of about 151.15 million kg CO2e, Scope 2 emissions of approximately 121.55 million kg CO2e, and Scope 3 emissions of around 4.59 billion kg CO2e.

Reduction Targets and Initiatives:

Arcos Dorados has set forth several ambitious targets to achieve its decarbonisation goals:

• A commitment to reduce GHG emissions from all restaurants and offices by 15% by no later than 2025, compared to a 2021 base year.
• A target to reduce GHG emissions across its supply chain by 10% by no later than 2025, using the 2021 base year.
• A more extensive commitment to reduce absolute GHG emissions within its operations (Scopes 1 and 2) by 36% by 2030, from the 2021 baseline.
• A target to reduce GHG emission intensity across its supply chain by 31% by 2030, also from a 2021 baseline.
• Specifically for Scope 1 and 2, the company aims for an absolute reduction to be equal to or lower than 231,791 tonnes CO2e by the end of 2025, representing a 15.0% reduction from the 2021 baseline.
• Further aiming for an absolute reduction in Scope 1 and 2 emissions to be equal to or lower than 218,156 tonnes CO2e by the end of 2026, equivalent to a 20.0% reduction from the 2021 baseline.
• For Scope 3 emission intensity, Arcos Dorados aims to achieve a reduction to be equal to or lower than 8.67 tonnes CO2e per total annual tonnes of Food and Packaging by the end of 2025, a 10.0% intensity reduction from the 2021 baseline.
• An additional Scope 3 intensity reduction target is set for 8.48 tonnes CO2e per total annual tonnes of Food and Packaging by the end of 2026, representing a 12.0% reduction from the 2021 baseline.

The company also provides projected GHG emissions intensity for Scope 3 (electricity) for 2026, estimated at 8,480.0 tonnes CO2e. While Arcos Dorados has reported significant progress towards its 2025 targets, data is not available to assess its progress towards the longer-term 2030 goals or its on-track status for the five-year outlook. Notably, Arcos Dorados' emissions data is not cascaded from a parent organisation; the organisation is the ultimate source.