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Arcos Dorados Achieves 96% of Energy Consumed by Restaurants from Renewable Sources, Reinforcing Sustainability and Energy Efficiency in Its Operations in Brazil.
In recent years, the concern for sustainability and reducing environmental impacts has become increasingly central for companies in all sectors.
Moreover, in the food industry, where energy consumption is intense and continuous, the challenge of implementing sustainable practices is even greater.
The Arcos Dorados, the largest McDonald’s franchisee in the world, present in Brazil and several countries in Latin America and the Caribbean, has stood out in this context.
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Recently, the company achieved a historic milestone by reaching 96% of the energy consumed by the restaurants from renewable sources. Consolidating its commitment to energy efficiency and environmental responsibility.
The decision to invest in clean energy also reflects global trends in conscious consumption.
Thus, increasingly, customers value brands that demonstrate a commitment to the environment.
In the food sector, this means not only offering quality products, but also adopting operational practices that minimize environmental impacts. Such as efficient energy use, waste management, and reducing greenhouse gas emissions.
In this way, Arcos Dorados combines sustainability with customer experience, reinforcing its position as a market leader.
The Historical Trajectory of Renewable Energy in Restaurants
The use of renewable energy in McDonald’s restaurants did not appear suddenly.
Historically, the chain has always sought to modernize its operations and reduce operational costs, however, the sustainability agenda gained momentum starting in the 2000s.
During that period, global companies recognized the importance of integrating environmental practices into business strategies.
In Brazil, Arcos Dorados began its energy transition journey in parallel with the growth of demand for clean energy. Making the country a world reference in electricity generation from renewable sources, especially hydropower and, more recently, solar and wind.
Over the decades, the food sector underwent significant transformations, adapting to new technologies and environmental regulations.
Efficient refrigeration systems, LED lighting, and equipment automation reduced energy consumption at the units.
Thus, in the case of McDonald’s, the company gradually incorporated these changes. Allowing it to keep pace with market evolution and strengthen its sustainability strategy without compromising operations.
The recent advancement, which placed the company at the forefront of the sector in terms of sustainability, resulted from the implementation of a broad strategy known internally as Recipe for the Future.
This ESG (Environmental, Social and Governance) platform organizes actions aimed at mitigating environmental impacts and promoting sustainable practices across all company units.
As a result, by reaching 96% renewable energy usage, Arcos Dorados drastically reduced the carbon emissions associated with scope 2. Which now represents only 0.01% of the company total in Brazil.
Challenges and Solutions in the Energy Transition
Achieving this level of energy efficiency was particularly challenging in units located within shopping centers. Like malls, where the company does not directly control the management of energy consumed by the restaurants.
On the other hand, to overcome this difficulty, the company conducted a detailed survey in 2024. And identified that 90% of the more than 230 restaurants located in shopping centers were already operating with energy from the Free Market.
This modality allows consumers to purchase electricity directly from generators or sellers, including renewable sources. This increases flexibility and ensures traceability.
Furthermore, Arcos Dorados complemented the energy matrix of its units by acquiring I-REC certificates, which correspond to 24.1% of total energy consumption.
These certificates prove that the energy used comes from renewable sources, such as solar, wind, and small hydropower plants. This reinforces transparency and reliability of energy consumption.
Consequently, more than 600 company-owned restaurants, or 84% of the directly operated units, are powered by clean energy and participate in the Energy Free Market and Distributed Generation.
Another relevant measure involves the integration of monitoring and intelligent energy management systems.
Through these systems, Arcos Dorados analyzes consumption in real time, identifies waste, and optimizes processes, generating financial savings and environmental reduction.
Therefore, investments show that the transition to renewable energy depends on both the acquisition of clean electricity and efficient management and strategically applied technology.
Commitment to Global Sustainability Goals
According to Rogério Barreira, President of Arcos Dorados Brazil Division, achieving 96% of energy consumed by the restaurants from renewable sources represents an important step in the company’s emission mitigation agenda.
He emphasizes that sustainability must occur through concrete and consistent actions throughout the operation.
Moreover, “As industry leaders, we are aware of our responsibility to create value for society and drive positive transformations throughout the chain,” he stated. This reinforces the company’s role in promoting significant changes in the food sector.
The initiative is also aligned with the United Nations Sustainable Development Goals (SDGs), especially SDG 7, which seeks to ensure access to reliable, sustainable and modern energy for all.
By investing in renewable energy and efficiency practices, Arcos Dorados promotes the expansion of clean source usage and encourages the energy transition in Brazil and the Latin American region.
Therefore, the company plans to reduce, by 2030, direct greenhouse gas emissions by 36% and total emissions throughout the entire value chain by 31%, based on 2021 levels.
It is worth noting that the path towards sustainability also involves innovative financial instruments.
In 2022, Arcos Dorados issued its first Sustainability-Linked Bond, linking environmental targets to a financial instrument.
This pioneering action links part of the variable remuneration to meeting emission reduction goals.
As a consequence, Marie Tarrisse, Senior Sustainability Manager, states that these initiatives reflect a collective strategy to leave a positive legacy and consolidate a more sustainable operation.
Strategic Benefits and Impact on the Sector
The trajectory of Arcos Dorados demonstrates that investing in renewable energy is not only an environmental obligation, but also a strategic opportunity.
Reducing energy consumption from fossil sources lowers operational costs and protects the company from volatility in the energy market.
At the same time, it strengthens the brand image among environmentally conscious consumers.
As a result, the success achieved in Brazilian restaurants serves as a model for other regions, encouraging the entire McDonald’s network to replicate similar practices and contributing to a more sustainable global food sector.
Historically, the food sector has faced significant challenges regarding sustainability. This is especially due to the need to operate 24 hours in large units and the high energy consumption in kitchens and refrigeration systems.
Therefore, the adoption of renewable energy in McDonald’s restaurants in Brazil demonstrates that it is possible to reconcile operational efficiency with environmental responsibility, without compromising service quality and customer experience.
The initiative by Arcos Dorados inspires other companies to invest in low environmental impact solutions. Moreover, it encourages considering sustainability as a central element in their long-term strategies.
In other words, this historical trajectory reinforces that the energy transition is possible and that consistent actions yield lasting benefits for society, the environment, and the economy.
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