Each 1°C of temperature rise reduces global GDP up to 12%.[1] The Intergovernmental Panel on Climate Change (IPCC) advises that greenhouse gas (GHG) emissions must reach net zero by 2050 to avoid exceeding 1.5°C of warming.

The livestock sector accounts for 11-20% of anthropogenic GHG emissions.[2] To limit warming to 1.5°C, livestock production emissions must drop by 2030 and absolute livestock numbers must peak globally by 2025.[3] A 2023 IPCC Report found that most GHG emissions from beef production cannot be eliminated through existing or anticipated technology. Instead, experts advise reducing production of ruminant meat to lower emissions.[4]

Wendy’s business is dependent on livestock. Beef alone accounts for nearly 50% of Wendy’s GHG emissions.[5] Although Wendy’s is committed to reducing the emissions intensity of purchased goods and services, including livestock, by 55% by 2030 and achieving climate neutrality in the beef value chain by 2040, it has not disclosed a roadmap for reaching these targets.[6]

This omission exposes Wendy’s to material risks:

· Supply chain risk: Physical and transition impacts of climate change are projected to cause losses of $1.3 trillion by 2030 for 40 of the world’s largest livestock companies, including Tyson and JBS.[7] Tyson and JBS are major Wendy’s meat suppliers.[8] Wendy’s 10-K also acknowledges climate change may increase raw material costs. Continued livestock dependency may narrow margins.

· Competitive risk: Alternative proteins offer the highest emissions savings per dollar of invested capital of any industry,[9] and competitors including Burger King offer alternative protein options in every U.S. restaurant.[10] Nevertheless, alternative proteins are absent from Wendy’s U.S. climate strategy.

· Legal risk: The New York Attorney General sued JBS, alleging that JBS’s net zero commitment is misleading because it is incompatible with JBS’s plans to increase beef production.[11] Tyson faces a lawsuit alleging that its “climate-smart beef” labeling and emissions goals are false marketing.[12] Because Wendy’s emissions targets are dependent on emissions reductions by JBS and Tyson, its goals may be similarly misleading.