SUSTAINABLE SOURCING AT MCDONALD'S
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SUSTAINABLE SOURCING AT MCDONALD’S
McDonald’s long-term vision is to source all of our food and packaging sustainably. This overarching goal addresses
all levels of our supply chain from the farms, forests and oceans that produce our products to the front counter of
our restaurants. For McDonald’s, sustainable sourcing must address what we call the 3 E’s of sustainability: ethics,
environmental responsibility, and economic viability.
In 2009, we established a more comprehensive and proactive commitment to ensure that, over time, the agricultural
raw materials for our food and packaging originate from sustainably managed land. We called this our Sustainable
Land Management Commitment.
In 2013, we expanded this commitment to address all 3 E’s at the raw material production level, not just the
environment. We have also aligned the following 5 programs to manage and improve impacts at each level of our
supply chain:
Raw Materials (Farms, Forests, and Oceans)
Animal Health & Welfare
Supplier Workplace Accountability
Supplier Environmental Scorecard
Logistics Environmental Scorecards 1Raw Materials
McDonald’s long-term vision is to source all of the raw materials for our food and packaging from sustainably
managed farms, forests and oceans. With regard to raw materials, our initial six global priority products are beef,
coffee, palm oil, packaging/ fiber, fish and seafood, and poultry.
Coffee
McDonald’s has always served coffee – it was one of the items on McDonald’s original menu in 1955. As consumer
demand for coffee has increased in recent years, we’ve expanded our offerings to include iced coffee and espresso-
based coffee drinks such as mochas, lattes and cappuccinos. In the U.S., McCafé-branded coffee drinks are served at
the front counter and drive-thru. In Europe, Asia and Latin America, customers can get a full coffeehouse experience
from McCafés attached to McDonald’s restaurants.
The increased demand for coffee worldwide and many years of low farmer incomes have contributed to the
continuation of less-sustainable coffee production methods that weaken farmer livelihoods and are depleting natural
resources in many parts of the world. Globally, we're committed to responsible coffee sourcing, and we're focusing our
efforts in two primary ways intended to drive ethical, environmental and economic outcomes in our coffee supply
chain:
21. Buying coffee from certified or verified sustainable sources. Third-party certification is one way to ensure that
growers are meeting standards for sustainable production systems. To be awarded certification, farms must meet
specific standards balancing all aspects of production, including protecting the environment, the rights and
welfare of workers and the interests of coffee-growing communities. External certification ensures conformance
to best practices for environmental and social responsibility. It can also result in improved yields and higher
coffee values for the farmer.
Globally in 2012, about 25% of our total coffee bean purchases were from Rainforest Alliance Certified™, Fair
Trade USA™, Fairtrade International or UTZ Certified farms. The majority of our certified coffee purchases are
from Rainforest Alliance Certified™ farms, including 100% of our espresso in the US and Canada, and all of
our coffee in Australia and New Zealand. McDonald's markets in Europe source 100% of their coffee - with the
exception of decaf - from farms that are Rainforest Alliance Certified, UTZ Certified, or Fairtrade International.
2. Investing in farmer training. Farmer technical assistance teaches farmers sustainable practices, prepares them to
seek certification and helps them capture the value of their sustainable coffee, ensuring that the sustainable
practices will continue. McDonald’s USA and Canada and their franchisees are investing over $6.5 million over
four and a half years in technical assistance for Guatemalan coffee farmers.
3Fiber/Packaging
McDonald’s aims to continually improve the overall sustainability of our packaging. The objectives of our sustainable
packaging efforts are to:
• Optimize weight and simplify the number of materials used in our packaging,
• Design recoverable packaging with viable end-of-life options
• Increase use of recycled or renewable materials from certified sources
• While our initial focus is on our consumer packaging, in the coming years we will work to develop standards
for secondary packaging, as well.
Fiber-based Packaging Minimum Requirements
Our primary focus is on fiber sourcing, as it is the predominant material used for our consumer packaging (e.g.
sandwich wraps, fry boxes, takeout bags, etc.). McDonald’s will leverage chain of custody certification and other
traceability systems to verify that all of the fiber used in our packaging comes from known and legal sources and is
from land that:
• Does not have significant volumes being converted from natural forest to plantation or non-forest use
• Is compliant with the International Convention on Trade in Endangered Species (CITES) regulation
• Is not harvested in forests where high conservation values are threatened
• Is not harvested in violation of traditional and civil rights
4McDonald’s works with our packaging suppliers to ensure that wood fiber used in our supply chain originates from
sustainable sources that meet our minimum requirements and will not knowingly purchase from suppliers that cannot
meet these minimum requirements. Ultimately, we give preference to fiber-based packaging that has earned credible
third-party certification, and our long term vision is for all of the fiber used in our packaging to come from certified
or recycled sources.
We give preference to Forest Stewardship Council™ (FSC©) certified fiber when it meets product performance
requirements and competitive market conditions. Other forest certifications recognized include Programme for the
Endorsement of Forestry Certification (PEFC) and PEFC endorsed schemes [e.g., Sustainable Forestry Initiative®
(SFI®), CSA Group (Canada), and Cerflor (Brazil)].
Our Journey
Havi Global Solutions (HGS) partnered with McDonald’s to develop a framework for a packaging design evaluation
tool, Eco-Filter 2.0, to provide better information about packaging decisions. HGS leveraged the expertise of
Environmental Packaging International (EPI), a consulting firm that specializes in design for environment tools, to
assist with building the tool. The tool builds on McDonald’s historic key packaging performance indicators, best
practices from the European and North American markets, and advice from outside experts and NGOs, such as the
Environmental Defense Fund. We will also use our EcoFilter Portfolio Assessment Tool (EFPAT) to make sure that
these indicators are influencing our entire packaging portfolio.
5Fish
With expert guidance from the Sustainable Fisheries Partnership, our Sustainable Fisheries program defines
sustainability standards that guide all of our purchases worldwide for wild-caught fish. By the way, all of our
whitefish (i.e. the fish used in the Filet-o-Fish) is wild-caught from sustainable fisheries. We will move our purchases
away from fisheries that do not meet our standards and work with the industry to drive continuous improvement.
Our long-term goal is to promote fishery improvement - not just to discontinue sourcing from unsustainable sources.
Since 2003 Conservation International and then the Sustainable Fisheries Partnership has annually evaluated
McDonald’s whitefish supply chain according to the standards set in the McDonald’s Sustainable Fisheries Program.
In recognition of McDonald’s long-standing global commitment to sustainable fishing practices, in 2011 & 2013,
McDonald’s Europe and McDonald’s USA, respectively, elected to certify their 20,000+ combined restaurants to the
Marine Stewardship Council (MSC) Chain of Custody traceability standard. All of the Filet-O-Fish portions served in
Europe and the U.S. now bear the MSC-certified label.
Palm Oil
McDonald’s uses palm oil in restaurant frying oil in certain markets. Palm oil is also used to par-fry our chicken
and potato products by direct suppliers in certain markets and in small quantities as an ingredient across a wide
range of products such as baked goods, sauces and confectionary items.
6McDonald’s supports multi-stakeholder efforts such as the Roundtable on Sustainable Palm Oil (RSPO) to identify and
remove unsustainable practices from the production of palm oil and to certify sustainable palm oil products. In
2010, we undertook an in-depth review of our supply chain to establish the sources of palm oil used in selected
markets for restaurant cooking oil and par-fry for chicken and potato products. In 2011 McDonald’s became a
member of the RSPO, and we required all of our suppliers to become members of the RSPO, as well.
McDonald’s is committed to supporting sustainable palm oil production with all palm oil purchased for restaurant
cooking and par-fry for chicken and potato products by 2015 In 2013, McDonald’s U.S.A. and Europe began using
RSPO certification schemes to cover secondary uses of palm oil in our products.
Beef
McDonald’s was built on the beef burger – it has been a core menu item since the first restaurant opened in 1955.
All of McDonald’s core beef burgers are 100% beef – no fillers, extenders or preservatives – only our special blend
of salt and pepper when we grill them. Beef production systems vary greatly around the world. McDonald’s strongly
supports efforts by governments, industry groups and NGOs to make these systems more transparent and sustainable.
Beef is McDonald’s global top sustainable sourcing priority. Currently, there is no broadly accepted and credible
definition of sustainable beef. Our top priority for 2013 was to create global principals and standards for how
McDonald’s will measure sustainable beef while also advocating for industry-owned principles and standards.
7We will also measure progress in sustainable beef through industry and roundtable engagement as well as field
projects scaling the use of sustainable beef production practices.
Sustainable Beef Milestones
• Demonstrate leadership in development of global principles and criteria for sustainable beef production with the
Global Roundtable for Sustainable Beef (GRSB) in 2013
• Begin purchases of verified sustainable beef by 2016
Our Journey
McDonald’s was a lead sponsor of the first Global Conference on Sustainable Beef (GRSB) in November 2010. More
than 300 stakeholders from all parts of the beef supply chain gathered in Denver, Colorado, for three days to discuss
current practices and identify areas of opportunity to drive continuous improvement throughout the global beef
system.
The objectives of the conference were to:
• Raise awareness of sustainable beef production issues
• Present new and current research, case studies and better management practices
• Create a forum for dialogue and build consensus around the key global environmental impacts of beef
production as the foundation for a sustainable beef work plan
8Since then, McDonald’s has worked with stakeholders around the world to create forums to engage and align the
entire beef value chain around improving the sustainability of beef production systems. Specifically, we have helped
to found the Global Roundtable for Sustainable Beef (GRSB), which was incorporated as a non-profit organization in
February of 2012. We have also chaired the Sustainable Agriculture Initiative (SAI) Platform’s Beef Working Group in
Europe and become a full member of the Brazilian Roundtable on Sustainable Livestock (GTPS). McDonald’s USA has
co-founded the U.S. Beef Stewardship Collaboration and is also working through the Field to Market platform to
promote sustainable livestock feed metrics, and partnering with the dairy industry to pilot on-farm sustainability
metrics.
No Sourcing From the Amazon Biome
McDonald’s commitment to protect valuable rainforest land began in 1989 when we established a policy against
sourcing beef from deforested areas in Brazil. Today, our stance is that no raw material from the Amazon Biome
(based on the IGBE map) is acceptable specifically:
• No slaughterhouse within the Amazon Biome will be used in our supply chain
• Any McDonald’s-approved slaughterhouse that is found to source beef from within the Amazon Biome or from
Brazilian government blacklisted farms will be immediately discontinued
• Every McDonald’s beef supplier purchasing raw materials from slaughterhouses in Brazil must sign and affirm
compliance with this policy
9Chicken
Chicken has been a part of McDonald’s menu since the McChicken sandwich was first introduced in 1975. Today, we
offer a variety of chicken items around the world, including sandwiches, salads, wraps and bone-in chicken in many
Asian markets and in the U.S. with the addition of Mighty Wings. While we are still getting started on poultry
sustainability, chickens are a priority for our Global Animal Health & Welfare team. We’re partnering with experts from
academia, NGOs and our supply partners that understand the ongoing research and have identified industry best
practices related to chickens and egg laying hens. The sub-team focused on chickens is developing global guidelines
and audit criteria on requirements we believe are necessary to ensure the animals’ health and welfare throughout the
supply chain. The laying hen sub-team is developing broad guidelines and specific requirements for hen housing
depending on type to accommodate cultural variations and local regulations in how the hens are raised around the
world.
Sustainable Chicken Milestones
• Announced Laying Hen Housing standards and guidelines for effective beek trimming in 2000
• Developed molting policy for Laying Hens in 2001
• Received the “Good Egg Award” from Compassion in World Farming in 2008
• Helped to establish the Coalition for Sustainable Egg Supply in 2010
• All chicken farms in Europe audited and certified against national or international farm assuance schemes in
2012
10Our Journey : Partnering To Protect the Rainforest
Soya (or soybean) is a major component of poultry feed. In 2006, Greenpeace alerted McDonald’s to concerns that
soya production in Brazil was contributing to the destruction of the rainforest. We quickly realized that a meaningful
solution would require an industry-wide effort, since soya producers are upstream in McDonald’s supply chain and our
buying power in the region is relatively small – less than 1% of soya purchases.
McDonald’s reached out to our partners and advisors – McDonald’s global, European and Brazilian leadership; Cargill;
NGOs; and some large European food retailers – to urge all Brazilian soy producers and exporters to come together
and create a solution. By late July 2006, all major soya buyers announced their commitment to a two-year
moratorium on purchasing soya from deforested areas in the Amazon region. McDonald’s continues to support the Soy
Moratorium.
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