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McDonald's Announces 2020 Corporate Social Responsibility and Sustainability Plans

Company introduces goals and measurable plan to create shared value for its business and society.

PUBLISHED 04-30-14

SUBMITTED BY MCDONALD'S CORPORATION

McDonald's Corp. today announced its first Corporate Social Responsibility & Sustainability Framework that is designed to position the company for the future, while generating measurable, positive impacts for society.

McDonalds released the Framework in conjunction with the Companys 2012-2013 CSR & Sustainability Report. In creating the framework, McDonalds continued its historically collaborative approach by consulting with suppliers, franchisees, customers and more than a dozen sustainability experts, NGOs and socially responsible investment organizations.

McDonalds 2020 CSR & Sustainability Framework aspirational goals include:

Supporting sustainable beef production by collaborating to develop global principles and criteria, and committing to begin purchasing a portion of beef from verified sustainable sources in 2016

Sourcing 100 percent of coffee, palm oil and fish that is verified to support sustainable production

Procuring 100 percent of fiber-based packaging from certified or recycled sources

Serving 100 percent more fruit, vegetables, low-fat dairy or whole grains in nine of its top markets

Increasing in-restaurant recycling to 50 percent and minimizing waste in nine of its top markets

Increasing energy efficiency in company-owned restaurants by 20 percent in seven of its top markets

In our new framework, we are focusing on the areas that are core to our business and that can make a real difference, said J.C. Gonzalez-Mendez, senior vice president of McDonalds Global Corporate Social Responsibility, Sustainability and Philanthropy. For instance, we are breaking new ground with our collaborative effort to source sustainable beef. We will continue to work with multiple stakeholders to develop practical solutions to increase recycling in our restaurants and across the industry. We will continue to meet our customers needs for choice and balanced menu options, including fruits and vegetables.

McDonalds is a company with the power to help transform the global food marketplace and to lead its industry towards sustainability, said Suzanne Apple, SVP, Private Sector Engagement, World Wildlife Fund. While this is a journey and requires a long-term vision, these sustainability goals are a great step forward in addressing issues that are key to McDonalds business and value chain.

Were on our way to mainstreaming sustainability, said Bob Langert, McDonalds vice president of Corporate Social Responsibility & Sustainability. Sustainability doesnt fully happen until the consumer is engaged and connected. In addition to catapulting momentum on key social and environmental issues, the difference McDonalds can make is bringing sustainability to the masses, making it part of our everyday business life and the lives of our customers.

The theme of the 2012-2013 CSR & Sustainability Report is, Our Journey Together. For Good. Highlights from the report include:

Committing to the Clinton Global Initiative in collaboration with the Alliance for a Healthier Generation to make nutritious choices and nutrition education a bigger part of the McDonalds experience

Offering fruits, vegetables, or low-fat dairy in Happy Meals in more than 95% of our restaurants around the world

Sourcing 100% of whitefish from fisheries that are verified sustainable

Installing approximately 300,000 pieces of more energy efficient kitchen and building equipment in restaurants worldwide since 2010

Of the more than 34,000 restaurants surveyed in 2013, about 90% reported recycling used cooking oil and about 77% reported recycling corrugated cardboard

Forbes

McDonalds the worlds largest restaurant company announced new climate goals last week, which were quickly followed by many comments like this one, from Axios:

These are concrete targets, but theyre not as of yet backed up with specific plans of how to get there.

Axios is right. These are concrete targets (and theyve been approved by the Science-Based Targets Initiative). Here are the details: by 2030, McDonalds is pledging to reduce greenhouse gas emissions from their restaurants and offices by 36 percent, and reduce their emissions intensity (per metric ton of food and packaging) across their supply chain by 31 percent. The company estimates these reductions will prevent 150 million metric tons of C02 equivalents (CO2e) from being released into the atmosphere. Thats huge its the equivalent of removing 32 million cars from the road for one year.

But I want to challenge Axios in saying that the company has no specific plans to get there.

Yes, the roadmap to reach this goal is still in development, and climate commitments dont mean much without climate action. Yet if McDonalds history of sustainability leadership tells us anything, its that this company can prove whats possible when you set ambitious goals, collaborate with unexpected partners, and leverage one of the worlds most powerful brands to drive environmental innovation and results.

McDonalds and other leading companies around the globe know what specific actions are needed to reduce emissions. They know how to get started, even if they dont yet know how to get to the finish line.

McDonalds cant meet this ambitious climate target by acting alone. It will take collaborating far beyond its own walls, and addressing the entire impact of its supply chain. Its an ambitious goal, but one that I can wholeheartedly applaud.

Why? Because by issuing these goals first without knowing all the answers the company is already proving to be a corporate sustainability leader in three big ways:

1. McDonalds is being transparent.

By issuing this bold challenge to itself in full view of its customers, its shareholders and the media McDonalds now has to deliver. The reputational risk of not achieving these goals may be high, but so is the reward potential, so the company will be focused upon success as they drive to meet (or exceed) these goals.

2. McDonalds is being ambitious. This target sets the stage for solutions that companies cant even imagine yet a.k.a. innovation. McDonalds will emerge from this a company transformed: more efficient, more resilient, more profitable and a better global citizen.

At their announcement event, Francesca DeBiase, McDonalds chief supply chain and sustainability officer conveyed that they were looking at every option to find ways to reduce emissions from working with local utilities on renewable energy for franchise locations to options for sourcing sustainable beef. By examining every aspect of their business, new and innovative approaches will surely turn up.

3. McDonalds is being holistic. Talking to McDonalds about their new goal revealed that sustainability is now truly embedded in every part of the business. Weve moved from asking what would be nice to do? said Robert Gibbs, McDonalds chief communications officer and executive vice president, corporate relations, to what should we actually be doing?

This is striking considering where McDonalds began their sustainability journey. When Environmental Defense Fund engaged the fast food giant on packaging waste nearly 30 years ago, it wasnt just an outlier initiative it was a secretive, back alley affair, where neither side wanted their stakeholders to know they were collaborating. When the results of this partnership became public $6 million in savings, more than 300 million pounds of packaging eliminated, 1 million tons of corrugated boxes recycled and restaurant waste reduced by 30 percent a new era of corporate/NGO partnerships was born. Now, this new climate goal sets them up for a repeat performance.

What weve learned since then is that if companies truly incorporate sustainability into their DNA, it creates tremendous business value cost savings, supply chain risk reduction, employee engagement, public relations benefits that inevitably inspires the company to do even more.

So congratulations, McDonalds for exhibiting precisely the kind of bold climate leadership that our planet needs. With global carbon emissions continuing to rise, we need action at a global scale. You are taking responsibility for your share of impact on the world, setting science-based targets that are in line with the rate of de-carbonization needed to stabilize the climate, and committing to engage your customers and suppliers to achieve the goal.

And to all you companies that may be sitting on the sidelines because you dont know all the answers, jump in! Youll reap the rewards of innovation, and join McDonalds as they strive to prove that doing good for the planet is also good for business.