The Chicago fast-food giant is starting the change now and expects its new standards to be global by the end of 2025.
"Our ambition is that every toy sold in a Happy Meal will be sustainable, made from more renewable, recycled, or certified materials like bio-based and plant-derived materials and certified fiber," the company said in a blog post Tuesday.
The company says it is drastically reducing plastics in toys while continuing to offer the same amount of kids toys in its meals.
McDonald's estimates that the change will result in about a 90% reduction of fossil-fuel-based plastic in Happy Meal toys from a 2018 baseline.
For comparison, the company says that is like the entire population of Washington, D.C., eliminating plastics from their lives for a year.
McDonald's says the change is under way in the U.K. and Ireland and complete in France. Those efforts have resulted in a 30% reduction in virgin fossil-fuel-based plastic use since 2018.
"We’ve assembled a team that extends beyond McDonald’s and includes scientists, toymakers and suppliers," the company said.
"Together we’ve leveraged all that the Happy Meal stands for to make positive impact for the planet feel more personal and exciting."
At last check McDonald's shares were trading up 0.7% at $240.70.