McDonald's Corp. (NYSE: MCD) is finally sowing deeper green roots.
The Oak Brook, Ill-based company over the last several years has launched a wide variety of environmental policies and programs; everything from reusing air conditioning condensation to water company plants to repurposing McDonald's advertising banners into tote bags.
McDonald’s now has key partnerships with environmental organizations like the World Wildlife Fund and the Environmental Defense Fund and last month it launched a pilot program to phase out polystyrene beverage cups.
The international food service icon recently released a report, 2012 Global Best of Green, a collection of its best environmental practices. The report highlights recent progress in eight categories including energy, packaging, anti-littering and greening the workplace.
As McDonald's ramps up its actions, it joins other industry heavyweights incorporating concerted sustainability efforts in their business models. Both Subway and Starbucks (Nasdaq: SBUX), for example, have gained attention for their work in sustainability.
According to Subway, last year the combined impact of sustainability initiatives in Canada and North America resulted in the elimination of 104,586 metric tons of carbon dioxide.
"Which is the equivalent of taking 20,616 passenger cars off the road for a year," the Milford, Conn., company brags on its website.
Last year, Starbucks was No. 7 on the Environmental Protection Agency’s National Top 50, a list of leading renewable energy purchasing organizations.
Robert Kuhn, president of Kuhn Associates Management Advisors, said that if McDonald's wants to begin to lead in the food industry's sustainability efforts, it's on the right path.
"They're clearly trying to gather data on their environmental impact and that's a good thing, because that's where it starts," he said.
Overcoming unique challenges will also be a part of increasing McDonald's sustainability efforts.
"The challenge is that the company has a huge footprint," Kuhn said. "They're operating in different countries that have different cultures. That's not the easiest thing in the world to deal with."
The franchise business model may also pose as a challenge for the company. More than 80 percent of McDonald's restaurants worldwide are owned and operated by independent franchisees.
"There may be areas of the business that, because of the franchise model, they may not have complete control of," Kuhn said.
Kuhn said he expects the food industry to continue building on new environmental policies and practices.
"I think that all consumer-facing food companies, including McDonald’s, will continue to assess their businesses in terms of sustainability, picking off low-hanging fruit wherever possible," he said.
As the food industry continues to build on its environmental practices, new sustainability leaders will eventually shake out, said Kuhn.
"I believe that McDonalds will be one of those leaders, but Starbucks, Subway and some food companies further up the chain (e.g., Chiquita Brands) have also emerged as leaders in sustainability," he said.
Photo of a McDonald’s restaurant by Paul Prescott via Shutterstock.com.














Big Mac needs a big
Big Mac needs a big plan...
McDonalds should be encouraged to continue with its green innovation. The company has endured many critics and at times looked to be retreating into a defensive shell rather than engaging in the discussions.
Interesting as the 90 case studies in Best of Green are, McDonalds needs to frame them in a bigger plan. Perhaps they have this but it is not evident in the report.
Unilever's Sustainable Living Plan (http://www.unilever.com/sustainable-living/) is a template they should be aiming to match or exceed. Coca-Cola's plan for water conservation and packaging recovery is impressive. And of course the gold standard in corporate sustainability is Interface's Mission Zero.
Often derided as impossible or a special case, their European operation has pressed ahead reinventing how carpet is made and investing in the production technology needed. As a result they anticipate reaching zero impact within the next two years.
Think big - big Mac.
Large firms like Mc Donalds
Large firms like Mc Donalds can really make a major difference and the word needs to be spread more broadly about their efforts. The established brand has major influence on its follower for sure. They must also make sure that its sustainability effort will be sustained.
that's interesting a big
that's interesting
a big polluter praises themselves by first damaging the environment with various measures now claim that they are green by reducing a minority of its massive evil acts - is it something to be proud of?
i'm from Hong Kong and I can't imagine that McDonald's created those polystrene bags for beverage, and now thinking of removing them and claim that it's an green act - fundamentally they shouldn't have introducing it to their service offering at all!
EPA's green power rankings
EPA's green power rankings were published for 2012 on Monday, 4/23. Starbucks is still on the list, but so is McD at #11. http://epa.gov/greenpower/toplists/top50.htm
Interesting re: the franchise
Interesting re: the franchise model dilemma. For examples of some of those companies that are leading, you can check out my recent blog entry, "Fast Food Industry Cultivates New Growth Through Sustainability": http://bit.ly/KvMxcY