Arcos Dorados issues sustainability bond

Posted an hour ago

Proposed by Arcos Dorados Holdings

The Company is the first in its sector in Latin America to link its funding strategy to its sustainability goals, with specific targets related to reducing greenhouse gas emissions across its operations.

MONTEVIDEO, Uruguay, May 4, 2022 /CSRwire/ — Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and largest independent franchisee McDonald’s in the world, announced the issuance of its first Sustainability Bond (SLB), positioning the company as the first in the Latin American restaurant industry to combine a financial instrument with environmental objectives.

Sustainability is part of the Arcos Dorados culture as well as our business strategy. As private sector leaders, we continually seek to balance our business activities with our social and environmental impact. Issuing this bond is an ambitious step that demonstrates our belief that sustainability is not only the right thing to do, but can also support good financial strategy,” said Marcelo Rabach, Managing Director.

SLBs are debt instruments that include commitments by the issuer to achieve certain ESG (Environment, Social and Governance) objectives, measured on the basis of specific key performance indicators (KPIs), in exchange for interest rates more attractive. Arcos Dorados has chosen to reduce greenhouse gas (GHG) emissions across its entire operation, taking another step in the evolution of the company’s constant and growing commitment to caring for the planet. and community development in the region.

The target set out in the agreement aligns with the company’s previous commitment to reduce GHG emissions from its restaurants and offices by 36% and its supply chain by 31% by 2030, both using 2021 as the reference year.

Excess GHG emissions, primarily carbon dioxide, contribute to global warming, which poses a major threat to the planet’s ecosystem. Driving a low-carbon economy is one of the priorities of the company’s ESG platform, known as its recipe for the future, which is aligned with the Sustainable Development Goals (SDGs) established by the United Nations.

In this context, from 2019, Arcos Dorados began to measure and audit the “carbon footprint” linked to its operations, which represents approximately 5.7% of its total GHG emissions. Since 2021, the Company has also started to measure the carbon footprint of its suppliers, which represent more than 93% of its total GHG emissions. In other words, the KPIs chosen by the Company for this financial instrument represent nearly 100% of its GHG emissions.

We believe we have a responsibility to be an agent of positive change given our size and scope. Our commitment to reducing GHG emissions goes beyond our operations, which is why we have gone further with this bond issue and have involved our main suppliers in this commitment, thus generating a common effort to reduce the carbon footprint. across our operations in Latin America and the Caribbean,” said Gabriel Serber, Vice President of Social Engagement and Sustainability.

The issuance of the Sustainability Linked Bond will be accompanied by annual audits carried out by third parties to measure the KPIs established by the Company. In addition, as part of this transaction and in accordance with SLBP (Sustainability-Linked Bond Principles), the financial instrument benefits from the approval of Sustainalytics, the renowned global sustainability rating company.

“Sustainalytics considers reporting and verification commitments to be aligned with market expectations. Based on the above, Sustainalytics considers that the framework is aligned with the five essential components of the 2020 Sustainability Bond Principles and that the potential achievement of sustainability performance targets is impactful,” said Sustainalytics in its report endorsing the Arcos Dorados initiative. .

With increasingly ambitious and challenging goals involving all aspects of its operation, Arcos Dorados continues to advance and strengthen its environmental commitments through its recipe for the future.

About Arcos Dorados
Arcos Dorados is the largest independent McDonald’s franchisee in the world, operating the largest chain of quick-service restaurants in Latin America and the Caribbean. It has the exclusive right to own, operate and license McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean with more than 2,250 restaurants, operated by the Company or its sub-franchisees, which together employ more than 90,000 people (as of 03/31/2022). The company is also committed to developing the communities in which it operates, providing young people with their first formal employment opportunities, and using its recipe for the future to achieve positive environmental impact. Arcos Dorados is listed on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: www.arcosdorados.com/.

Arcos Dorados logo

Arcos Dorados Holdings

Arcos Dorados Holdings

Arcos Dorados is the world’s largest independent McDonald’s franchisee by system-wide sales and number of locations. The company is the largest fast food chain in Latin America and the Caribbean. You have the exclusive right to own, operate and franchise McDonald’s locations in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guyana, Guadeloupe and Martinique. , Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad and Tobago, Uruguay and Venezuela. The company operates or franchises over 2,200 McDonald’s restaurants with over 90,000 employees and is recognized as one of the best companies to work for in Latin America. Arcos Dorados is listed on the New York Stock Exchange (NYSE: ARCO).

More than Arcos Dorados Holdings

Comments are closed.