As you might imagine, our supply chain is extensive and complex. It’s also very efficient, which is why we are able to consistently offer our customers safe and quality food at an affordable price. But there’s more to the equation.
We strive to ensure that every step of the McDonald’s supply chain contributes positively to the safety, quality, and availability of our final products. We also want our product ingredients to be produced in ways that contribute positively to the development of sustainable agricultural and food manufacturing practices.
Since McDonald’s does not actually produce any of the food we ultimately serve our customers, it’s essential that we work with suppliers who share our values, and we do.
We have a large number of direct suppliers – companies that make or deliver final products for our restaurants – as well as an even larger number of indirect suppliers – companies and farms that grow or process the ingredients that are eventually delivered to our direct suppliers.
We work closely with our direct suppliers to continuously improve the practices that impact their employees, their communities, the environment, their own suppliers, and of course, our customers. Examples of this type of work include our Social Accountability program and our Environmental Scorecard. Review of adherence to these programs, and others related to sustainable supply, are included in McDonald’s Supplier Performance Index - the primary evaluation tool used to evaluate our suppliers’ overall performance in serving McDonald’s needs.
Our suppliers are expected to share and apply our vision of sustainable supply to their own suppliers (our indirect suppliers). We also ask them to help us understand industry-wide sustainability challenges and opportunities related to the ingredients they use to make our products.
We don’t have direct control over those issues, but we can use our size and recognized brand to be a positive influence by raising questions, bringing people to the table, and encouraging improvement.
Actions speak louder than words
We have been developing and implementing a range of sustainable practices in our supply chains for many years. Some recent accomplishments include:
In 2008, more than 98% of our fish was sourced from fisheries with favorable sustainability ratings
97% of the 500 approved abattoirs (animal handling facilities) in our supply chain were audited for animal welfare in 2008, and 99% of those passed their audits.
McDonald’s suppliers of beef, poultry, pork, potato, and bakery products in our nine largest markets will be using the Environmental Scorecard by the end of 2009. In addition, market and product coverage goes beyond this benchmark in some areas.
McDonald’s Europe launched Flagship Farms, a program designed to share and promote best practices in sustainable agriculture.
Other recent progress and best practices related to environmental sustainability are profiled in our Best of Green report, including supplier leadership examples. Some of the most recent winners of local Sustainable Supplier Awards include Pride Pak (Canada), Smithfield Foods and Keystone Foods(U.S.), Seda (Europe), Havi Global Logistics (Europe), and McCain (Europe).
We also know there is much more to do. We will continue to work with our direct suppliers, advisors, and relevant industries to make sure our suppliers are aware of the importance of sustainability. We also continue to support the development of multi-stakeholder efforts that promote more sustainable raw material production.
"Customers hold McDonald’s to a very high standard, and increasingly, they want to know that the companies they trust – and whose products they are buying and feeding to their kids – are working towards solutions. Overall, McDonald’s is definitely one of the leaders and workingconstructively with suppliers to improve. McDonald’s can and should do more to bring in more actors to help solve critical issues impacting their supply chain."
