New YorkState Comptroller Thomas P. DiNapoli expressed concerns over the“potential financial and reputational risks associated withMcDonald's chicken welfare practices.” (Photo:Shutterstock)

(Bloomberg) — McDonald's Corp. has long been on the receivingend of calls to take better care of its chickens. Earlier thismonth, actors and musicians, including Kristen Bell, Joan Jettand Weird Al Yankovic, have lent their names to demands for morehumane treatment.

Now there's a new name on that list, and it carries a lot moreweight.

In a letter dated Aug. 22, 2018 and obtained byBloomberg News, New York State Comptroller Thomas P.DiNapoli expressed concerns over the “potential financial andreputational risks associated with McDonald's chicken welfarepractices.”

DiNapoli was writing in his capacity as trustee of the New York State Common Retirement Fund, thethird-largest public pension fund in the U.S. and—as ofJuly 31—holder of more than $300 million in McDonald's stock.

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The warning, addressed to McDonald's Chairman Enrique Hernandez,Jr. and Chief Executive Officer Stephen J.Easterbrook, follows a broad media campaign by theHumane Society of the United States, including a television adrunning in McDonald's home town of Chicago and a letter with 20celebrity signatories.

They all urge the restaurant giant to follow competitors such asBurger King and Subway in making “modest reforms” to its chickenwelfare policies, including transitioning to more humane breeds andslaughter practices.

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While McDonald's, the nation's largest restaurant chain, hascommitted to using cage-free eggs by 2025 and gestation crate-freepork by 2022, it has yet to join competitors in promisingthese specific steps for chickens, by far the most populousanimal on American farms.

DiNapoli called on the company to adopt precise standardsfor broiler chicken welfare, like those provided by the RoyalSociety for the Prevention of Cruelty to Animals (RSPCA) or theGlobal Animal Partnership (GAP).

The point, though, isn't just to take better care of animals, hesaid. It's to protect the company, and thus its investors—includingsuch big, institutional ones as New York.

“Although these standards are important from an animal welfareperspective,” the letter states, “they also make business sense.”DiNapoli cited both increased consumer demand for higher welfareanimal products, and the negative publicity McDonald's has garneredby lagging behind. He concluded his letter with a requestfor “a response detailing what the company is doing to buildon its recent chicken welfare policy and align it with widelyaccepted best practices like RSPCA and GAP.”

The Humane Society's complaints about McDonald's treatment ofchickens center on their crowded housing, as well as thebreed, which is selected for its fast growth but prone to healthproblems, including broken legs.

The group applauded DiNapoli's letter. “ThatMcDonald's is allowing chickens to gravely suffer in its supplychain while its competitors take steps to improve their treatmentcertainly should cause concern for anyone invested in the company,”said Josh Balk, vice president of the Humane Society's farm animalprotection. “We're glad the state of New York recognizes this andis taking steps to protect its investment by urging McDonald's todo better.”

DiNapoli spokesman Matthew Sweeney said that theoffice has yet to hear from McDonald's. In response to arequest for comment by Bloomberg News, the fast-foodchain didn't directly answer DiNapoli's request for anaccounting—or say whether it would address the Humane Society'sconcerns.

“Last October, we announced a new policy establishing eightglobal commitments, which will measurably improve chicken welfareacross our supply chain,” the company said. These include“requiring chickens be raised in housing environments that promotenatural behaviors, implementing on-farm monitoring systems togather key welfare indicators, establishing third partyaudits and the creation of an independent Global ChickenSustainability Advisory Council.”McDonald's said it works with“suppliers, NGOs, academics and industry experts to advance thesustainability of the chicken served at our restaurants. We believethis outcome-based approach provides the most comprehensive wayforward to measurably improve chicken welfare.” Oak Brook,Illinois-based McDonald's rose $3.35 to $164.15 at 1: 50 p.m. inNew York trading.

Balk of the Humane Society called McDonald's statement a seriesof empty promises. “It's disappointing McDonald's continues touse vague PR statements that don't contain clear actions to reducethe suffering and pain of chickens raised for their menu,” he toldBloomberg in an email.

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