McDonald's (potato) suppliers making progress in sustainability

McDonald's best of sustainable supply 2012

March 14, 2012

McDonald's just announced its 2012 Best of Sustainable Supply Chain winners by highlighting 51 stories of supply chain partners addressing challenges to help improve food sources, the environment, communities and employee wellness across the world. Manufacturers of french fries are well represented in this list.

McDonald's received more than 400 submissions from 172 different suppliers, making the 2012 selection process the most difficult yet impactful to date.

Supply chain achievements spanned diverse areas including meeting zero waste-to-landfill targets, taking the plastic out of plastic bottles, teaching orphans how to raise chickens, helping employees attain further education, and more.

Collectively, they demonstrated the power of sharing responsibility by letting employees lead;sharing experience by applying global lessons locally;and sharing expertise through partnerships.

A panel of executives and external experts, including BSR, Conservation International, Food Animal Initiative (FAI) and World Wildlife Fund (WWF) selected the final 2012 Best of Sustainable Supply winners. These projects were selected based on either measurable results or innovation.

"One of our core values is taking seriously the responsibilities that come with being a leader, and using our size, scope and resources to help make the world a better place. Nowhere is that commitment more evident than in our supply chain,"said Jose Armario, executive vice president, McDonald's Global Supply Chain, Development &Franchising. "The submissions in this year's report demonstrate that McDonald's supply chain is world class in its ability to provide safe, sustainable, and assured supply of food and products our customers love."

Best of Sustainable Supply Report highlights include:

Integrated Pest Management

Leading competitive North American potato suppliers (ConAgra Lamb Weston, McCain Foods, J.R. Simplot Company) collaborated to identify and measure the implementation of best practices to reduce pesticide, fertilizer and water use.

Animal Welfare Training

GenOSI Inc. (an OSI Group partner in the Philippines) trained government animal welfare officers and meat inspectors in the Philippines. Judges selected this entry as an example of leadership that extends beyond a company's scope of responsibility to drive systemic change.

Sustainable Wheat Farming to Reduce Carbon Footprint

Fresh Start Bakeries in Europe worked with suppliers to reduce the carbon footprint resulting from the agricultural practices used to produce its main raw material: wheat. This example reflects the highest aspirations of McDonald's Sustainable Land Management Commitment.

Reducing the Use of Fossil Fuels and Supplying Energy to the Community

Grupo Melo, a Central American supplier, built and optimized hydro power turbines that produce excess power for the surrounding community during the rainy season.

"The majority of any given company's social and environmental impacts are in its supply chain. McDonald's recognition of its suppliers is an important means to highlighting innovative solutions that drive sustainability commitments and encourage leadership within the industry,"said Sonal Pandya-Dalal, Conservation International's Senior Advisor, Corporate Leadership Strategies, Center for Environmental Leadership in Business.

"McDonald's Best of Sustainable Supply recognizes the importance, and thereby encourages, the development of sustainable initiatives within the supply chain,"said Roland Bonney, director of Food Animal Initiative.

McDonald's Armario added, "Leadership throughout our supply chain is increasingly critical as we work to integrate sustainability actions across all areas of our business to help make the world a better place for everyone. We sincerely appreciate all of our suppliers' efforts."

The 2012 Best of Sustainable Supply winners are: