Prioritizing resources and concentrating efforts where they matter most
Reveals risks and sustainability concerns
Identifies opportunities for greatest leverage
Improves engagement with supply chain partners
McDonald’s is making efforts to mainstream sustainability, including through goals to increase the amount of agricultural raw materials for its food and packaging products that come from sustainable sources.
In analyzing the environmental, social, economic and socio-political risks of four key commodities: beef; chicken; coffee; and oils, such as palm and canola, WWF’s Supply Risk Analysis helped identify the hotspots and potential risks to McDonald’s supply chain. While no one was surprised that beef landed at the top of the list, the assessment provided some important revelations if the company was to meet its goals.
One of the biggest was the potential for deforestation or impact on biodiversity associated with oils such as palm oil and feed for livestock. What was once a minor ingredient or an upstream issue, seeming out of the company’s concern and influence, suddenly became a part of the equation in managing risk and making progress in sustainable sourcing.
Identifying risks is only the start of the process for a company. Next steps could include joining roundtables, purchasing verified sustainable products, mapping their supply chain or working with their suppliers. McDonald’s, for example, is using its position as a large beef buyer to raise the profile of sustainable beef and is one of the leading champions for the Global Roundtable on Sustainable Beef.
“At McDonald’s, we aim to use our scale, scope and talent to make a positive difference for children, families, communities, and the planet,” says Francesca, McDonald’s Corporate Vice President of Worldwide Supply Chain Management, “WWF’s Supply Risk Analysis Tool has helped us focus our efforts on areas where we can have a real influence.”