2Sustain

McDonald’s Corporation has released its 2011Sustainability Scorecard, which underscores the company’s progress in five priority areas: sustainable supply chain, environmental responsibility, community, employee experience and nutrition and well-being. Highlight in this year’s report include significant advancements related to sustainable sourcing and what McDonald’s calls “menu evolution.”

With regard to sustainable sourcing:

• McDonald’s can now report measurable progress in its five initial focus areas:  beef, poultry, coffee, palm oil and fiber. Earlier this year, the company announced its Sustainable Land Management Commitment, and then expanded that initiative by joining the Roundtable on Sustainable Palm Oil (RSPO).
• All fish for McDonald’s Filet-O-Fish sandwich is wild caught, and currently 99 percent is sourced from Marine Stewardship Council (MSC)-certified fisheries.

McDonald’s says it will also be making changes to its menu: (more…)

WhiteWave Foods, the Colorado-based company that makes Silk^®, Horizon Organic^®, International Delight^® and Land O Lakes^®, released ambitious new sustainability targets last week.

Most notably, by 2013, WhiteWave plans to:

• reduce GHG emissions by 25 percent, working from a 2006 baseline.
• reduce non-ingredient water use by 15 percent, compared to a 2008 baseline.

The company had previously set several sustainability goals in 2006 and 2007, and the results to date are impressive. For example, WhiteWave already has: (more…)

Earlier this year, toy and game maker Hasbro, Inc. directed its suppliers to stop using paper sourced from unsustainably managed forests.

Now, the company has unveiled a comprehensive policy intended to ensure that all procurement decisions align with the company’s commitment to environmental sustainability and support sustainable forest management.

Hasbro’s new Paper and Forest Procurement Policy (PFPP):

• sets stringent vendor requirements for credible third party certification (such as the Forest Stewardship Council) of fiber.
• requires that no sources of Mixed Tropical Hardwood (MTH) virgin fiber be used in products, including packaging.

The PFPP underscores a goal Hasbro already had established: By 2015, the company wants 90 percent usage of paper packaging and in-box game content derived from recycled material or sources that practice sustainable forest management. (For 2011, the goal is 75 percent.)

In addition, Hasbro has taken the supplementary step of achieving Forest Stewardship Council certification for its US manufacturing facility, and the company is pursuing similar certification for its manufacturing facility in Ireland.

According to Kathrin Belliveau, Hasbro’s Vice President, Corporate Responsibility and Government Affairs, the company recognizes these moves have important strategic benefits. As I’ve mentioned before, “peak deforestation” creates three specific valuation risks for your company and its associated investment portfolios: (more…)

Back in March, I wrote about McDonald’s new Sustainable Land Management Commitment (SLMC). Now, McDonald’s has extended this commitment even more by joining the Roundtable on Sustainable Palm Oil (RSPO), an organization that promotes the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.

As a result of its membership in the RSPO, McDonald’s says that by the end of this year, it will source palm oil only from RSPO member companies. By 2015, only RSPO-certified palm oil will be used in McDonald’s restaurants, pre-cooked chicken and potato products.

This new focus on palm oil comes after an analysis conducted as part of McDonald’s SLMC.  The company, in collaboration with World Wildlife Fund (WWF), identified which of its raw materials have the most potential sustainability impacts. The list includes beef, poultry, coffee, fiber for packaging and palm oil –and so McDonald’s is going to center its attention on those areas. (more…)

I received a few interesting responses to my last blog posting so I thought it may be fun to keep the dialogue going. The comments I received are pretty consistent with what I hear from many friends and colleagues here in the Bay Area – namely that companies need to be regulated in order to really take progressive, proactive action on social, environmental and labor issues. In particular, I believe most folks feel that companies need regulation to take meaningful action on global warming via hard-hitting new regulation on energy usage and GHG emissions reduction. While I think there is some truth to the fact that companies do need to be “motivated” by regulation (a.k.a. the “cattle prod approach”), I also see companies taking proactive steps independent of regulations, and I think that this should be acknowledged. I also think that such proactive steps if/when taken for the right reasons represent our best shot at truly meaningful, lasting, long-term change.

(more…)