MCDONALD'S AUSTRALIA LIMITED AUSTRALIAN PACKAGING COVENANT - ACTION PLAN 2013 TO 2015
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McDonald’s Australia Limited
Australian Packaging Covenant
Action Plan 2013 to 2015MCDONALD’S AUSTRALIA LIMITED
ABN: 008 496 928
21 – 21 CENTRAL AVENUE
THORNLEIGH NSW 2120
PO Box 392
PENNANT HILLS NSW 2120
P: +61 2 9875 6666
F: +61 2 9875 6565
McDonald’s Australia Limited 2
Copyright © 2013 McDonald'sCEO Forward At McDonald’s Australia, environmental responsibility spans the entire life cycle of our products. It starts with the fresh ingredients at the farm and the design of our packaging, and extends through food manufacture to our restaurants, customers, and waste disposal. Our choice of packaging is important to ensuring our customers receive their food and beverages at the right temperature, and in an easy manner to consume. Environmental impact is one of five criteria incorporated into McDonald’s process of developing food and beverage packaging. The other four are functionality, cost, availability of materials and impact on our operations. Historically, we have shown a willingness and commitment to reducing the environmental impacts of our packaging and have always sought opportunities to actively engage in environmental initiatives at all stages in the life of a package, from its design through to disposal. In 1971, when the first Australian McDonald’s restaurant was opened in Sydney, the restaurant conducted daily litter patrols – a practice that continues at all our restaurants today. In 1991 we changed from foam burger packaging to paper and incorporated a “Be Tidy” logo to discourage littering and later, we introduced recycled content to some packaging. Since 2000 we have been encouraging our suppliers to reduce the environmental impacts associated with the manufacture and supply of McDonald’s products. Our Australian review process was in fact used to develop a template for McDonald’s global reporting on supplier environmental commitment and performance. We have continued to make notable improvements not only to our packaging and waste practices, but to how we measure and report against them. We introduced a detailed environmental evaluation tool (Eco-Filter) to compare the environment impact of packaging options. This enables our product development teams to more objectively assess the environmental credentials of our packaging. We placed a keen focus on partners at the paper-based products converter and raw material supplier level and, in doing so, helped them increase their level of sustainable forestry.. We also completed the removal of all foam packaging from our restaurants, as well as plastic plates from our McCafe operation. In addition, we enhanced and re-launched our restaurant litter patrol program, and drove increased awareness of the impacts of inappropriately discarded waste with our 90,000 staff as well as all Australians, through our ongoing support of Clean Up Australia and its flagship annual event – Clean Up Australia Day. What has become clear over the past years is the fact that our customers – who total approximately 1.7 million Australians every day – want us to continue focusing on packaging materials and design, along with waste and recycling. They are some of the most visible areas in which we have an impact on the environment and also the areas in which, given the scale of our business, even small improvements can make a big difference. McDonald’s Australia Limited 3 Copyright © 2013 McDonald's
In 2010 we decided to take a staged approach to preparing our Packaging Covenant action plan. We know from experience that to implement meaningful change on a large-scale across our operations, we need to approach that change in stages, where careful consideration is applied to the results gathered at each stage before decisions are made and further plans are articulated and implemented. Our 2011 to 2012 action plan was executed with positive results. We have taken the learning’s of our 2011 to 2012 action plan, and used these to guide the creation of a new action plan that will drive our focus between 2013 and 2015. The actions committed to in this plan will enable us to further engage with industry on challenges and opportunities, and to continue to trial a number of potential solutions to waste and packaging issues. We believe this is the right approach: it means our plan is robust, and provides our System – inclusive of corporate and restaurant-based staff, our licensee and supplier communities – with relevant and finite actions to carry-out within a short-to-medium timeframe. This action plan will keep us focused on the packaging sustainability journey – a journey our entire System is committed to continue travelling over the coming years. Catriona Noble CEO/Managing Director McDonald’s Australia Limited McDonald’s Australia Limited 4 Copyright © 2013 McDonald's
Executive Summary As a signatory to the Australian Packaging Covenant (APC), McDonald’s Australia Limited has prepared this action plan with the goal to further reduce the environmental impacts of McDonald’s packaging at all stages in the life of a package. Our plan addresses the strategies adopted in the Sustainable Packaging Guidelines, with actions listed against the three key performance goals of the APC; design, recycling and product stewardship. We have noted the overarching objectives and targets of the Covenant and have reviewed our waste stream in order to develop a realistic plan for the McDonald’s System that encompasses the principles of product stewardship. The journey to sustainability is an ongoing one and we acknowledge we have a way to travel with regard to minimising waste to landfill, including diverting resources to recycling. We will continue to work alongside industry to ensure we move in the right direction as efficiently as possible. Our aim is to build on past achievements and we recognise that the entire McDonald’s System – inclusive of corporate and restaurant-based staff, our licensee and supplier communities – is important to the implementation of this plan. Our focus in the area of design will continue to be on reducing the impact of our packaging from design and sourcing of materials through to its end life. Eco-Filter2.1 is a detailed environmental evaluation tool and will play a key role in comparing the environment impact of packaging options, and assessing each for viability. We have long-term relationships with our suppliers, including packaging suppliers, and are aligned on our principles and goals. We will continue to leverage these relationships to make progress against APC key indicators and performance goals. This plan also details activities that will enable McDonald’s to continue to drive market development in the area of recycling and use of recycled materials through the purchase of products made from recovered recyclable materials. This action will be applied across the relevant business units from consumer packaging, to restaurant construction and fittings. In addition, our product stewardship focus will see us play a role in reducing litter through a focus on participation in our Restaurant Litter Patrol program, along with consumer packaging and other initiatives. McDonald’s Australia Limited 5 Copyright © 2013 McDonald's
Contents
Forward ................................................................................................................................................................. 3
Executive Summary .............................................................................................................................................. 5
Contents ................................................................................................................................................................. 6
Introduction .......................................................................................................................................................... 7
The Organisation ............................................................................................................................... 7
Site Locations ...................................................................................................................................... 7
Other Site Details ................................................................................................................................ 8
Contacts .............................................................................................................................................. 9
Our Values .......................................................................................................................................... 9
Our Stakeholders .............................................................................................................................. 10
Supporting Australian Packaging Covenant Goals ..................................................................... 11
Design ................................................................................................................................................ 11
Recycling & Use of Recycled Materials ............................................................................................. 14
Product Stewardship .......................................................................................................................... 14
McDonald’s Packaging Review against Sustainable Packaging Guidelines ............................ 15
Packaging Review Timeline ............................................................................................................... 15
Key Performance Indicators .......................................................................................................... 16
Covenant Goal 1 - Design .................................................................................................................. 16
Covenant Goal 2 - Recycling ............................................................................................................. 17
Covenant Goal 3 - Product Stewardship ........................................................................................... 19
McDonald’s Australia Limited 6
Copyright © 2013 McDonald'sIntroduction
The Organisation
The McDonald’s story started in 1955 in Chicago, Illinois USA when Ray Kroc opened the
first franchised McDonald’s restaurant. There are now 33,000 McDonald’s restaurants in 119
countries around the world serving 68 million customers every day. Some 80 per cent of
these restaurants are owned and operated locally by almost 5000 business men and
women.
The global business is managed by McDonald’s Corporation as four distinct geographic
segments: United States; Europe; Asia Pacific, Middle East and Africa (APMEA); and Latin
America and Canada. McDonald’s Australia is part of the APMEA group and this segment
represents more than 9,500 restaurants across 37 countries, and nearly 20 per cent of the
total revenue of the global system. Within this group Australia, Japan and China make up
nearly 2/3 of total APMEA sales.
Australia, along with the United States, Canada, France, Germany, United Kingdom, China
and Japan, is considered to be a major market for McDonald’s worldwide. These eight major
markets comprise approximately 70 per cent of total revenues.
The first Australian McDonald’s restaurant opened in the western suburbs of Sydney in
1971. There are now (as at May 2013) 897 McDonald’s restaurants across Australia serving
approximately 1.7 million customers every day. Table 1 provides details of where these
restaurants are located and the distribution of franchise and company operations.
Site Locations (as of June 2013)
State Company Franchise Offices Total Sites
Restaurants Restaurants
A.C.T 0 18 0 18
NSW 111 190 5 306
QLD 31 169 2 202
VIC 37 193 2 232
SA 8 46 2 56
WA 27 45 1 73
TAS 0 17 0 17
NT 0 6 0 6
Total 214 684 12 910
Table 1
McDonald’s Australia Limited is an unlisted Australian public company. It is a franchise
business with more than 70% of the restaurants in Australia owned and operated by
individual, local business men and women. The remainder of the restaurants are run by
company staff. Most franchisees enter into a 20 year agreement with McDonald’s and many
own and operate more than one restaurant. The franchise structure allows our restaurants to
meet the needs of their individual communities within a framework that ensures high safety,
quality and accountability standards.
McDonald’s Australia Limited 7
Copyright © 2013 McDonald'sMcDonald’s and our franchisees employ approximately 90,000 people in restaurants and
management offices across Australia. Table 2 shows the locations of each of our office and
training facilities in Australia.
McDonald’s Australia reports to the President Asia Pacific, Middle East and Africa -
McDonald’s Corporation who in turn reports into McDonald’s Corporation senior
management in the US. In this way, the operation of McDonald’s Australia is governed by
the global McDonald’s System. This System is decentralised providing great freedom for
individual countries to operate the business to best suit the needs of their customers within a
framework that ensures each market adheres to the same core values, principles and
standards.
The following are registered trademarks of McDonald’s Corporation and its affiliates:
McDonald’s, Chicken McNuggets, Happy Meal, Deli Choices, Salads Plus, McCafe,
McHappy, Made to Order, Ronald McDonald House, Ronald McDonald House Charities,
Ronald McDonald Learning Program, Ronald McDonald Family Room and Ronald
McDonald Family Retreat.
Other Site Details
NEW SOUTH WALES NEW SOUTH WALES NEW SOUTH WALES
Head Office, NSW State Office, Training Centre & New South Wales: Sydney
Reg’d Office Tech Services Workshop CBD
21 – 29 Central Avenue 14 – 20 Central Avenue Cnr Pitt & Park Streets
Thornleigh NSW 2120 Thornleigh NSW 2120 Sydney NSW 2000
P: 02 9875 6666 P: 02 9875 6666 P: 02 9875 6666
F: 02 9875 6565 F: 02 9875 6515 F: 9267 8054
NEW SOUTH WALES NEW SOUTH WALES SOUTH AUSTRALIA
Hunter: Regional Office Southern NSW: Regional Office South Australia: State Office
23 Maitland Road 312 Queen Street 36 Bank Street
Hexham NSW 2322 Campbelltown NSW 2560 Adelaide SA 5000
P: 02 9875 6666 P: 02 9875 6666 P: 02 9875 6666
F: 02 4964 9702 F: 02 4628 0099 F: 08 9475 5900
VICTORIA VICTORIA QUEENSLAND & NORTHERN
TERRITORY
Victoria: State Office Victoria: Training Centre Queensland / Northern
2 Smith Street 6-10 Mason Street Territory: State Office and
Collingwood VIC 3066 Collingwood VIC 3066 Training Centre
P: 02 9875 6666 P: 02 9875 6666 1364 Gympie Road Aspley
F: 03 9418 5595 F: 03 9418 5595 QLD 4034
P: 02 9875 6666
F: 07 3838 3263
NORTH QUEENSLAND TASMANIA WESTERN AUSTRALIA
North Queensland: Regional Tasmania: State Office Western Australia: State
Office 302 South Arm Road Office
PO Box 856 Castletown Lauderdale TAS 7021 18 Lyall Street
Hyde Park QLD 4812 P: 02 9875 6666 Ascot WA 6104
P: 02 9875 6666 F: 03 6248 1244 P: 02 9875 6666
F: 07 3630 3999 F: 08 9385 1086
Table 2
McDonald’s Australia Limited 8
Copyright © 2013 McDonald'sContacts MAIN CONTACT – Covenant Officer OTHER CONTACT Susanne Craig McDonald’s Customer Service Sustainable Supply and Quality Manager A: 21 – 29 Central Ave, Thornleigh 2120 A: 21 – 29 Central Ave, Thornleigh 2120 A: PO Box 329, Pennant Hills, NSW A: PO Box 329, Pennant Hills, NSW 2120 2120 P: 02 9875 6666 P: 02 9875 6689 F: 02 9875 6565 F: 02 9875 6530 W: www.mcdonalds.com.au E: Susanne.Craig@au.mcd.com Table 3 Our Values McDonald’s Australia has a clear set of corporate values in place which are communicated to all employees from casual crew to senior management. Our values are expressed in a manner that is easy for everyone to put into action in their everyday working life but they also guide our broad strategic direction and corporate planning. To achieve our mission of becoming our customers’ favourite place and way to eat, the following seven core values are fundamental to our business operations. We place the customer experience at the core of all we do. Our customers are the reason for our existence. We demonstrate our appreciation by providing them with high quality food and superior service, in a clean, welcoming environment, at great value. Our goal is outstanding quality, service, cleanliness and value (QSC&V) for each customer every time. We are committed to our people. We provide opportunity, recognise talent and develop leaders. We believe that a diverse team of well-trained individuals working together in an environment that fosters respect and drives high levels of engagement is essential. We believe in the McDonald’s System. The McDonald’s business model, depicted by the “three-legged stool” of franchisees, suppliers and company employees, is our foundation, and the balance of interests among the three groups is key. We operate our business ethically. Sound ethics is good business. At McDonald’s, we hold ourselves and conduct our business to the highest possible standards of fairness, honesty and integrity. We are individually accountable and collectively responsible. We give back to our communities. We take seriously the responsibilities that come with being a leader. We help our customers build better communities, support Ronald McDonald House Charities (RMHC), and leverage our size, scope and resources to help make the world a better place. We are committed to sustainable business practices and are determined to conduct our operations in a manner that does not compromise the ability of future generations to meet their needs. McDonald’s Australia Limited 9 Copyright © 2013 McDonald's
We grow our business profitably.
Our stakeholders support our ability to serve our customers. In return, we work to provide
sustained, profitable growth for all members of our System and our investors.
We strive continually to improve.
We consider ourselves a learning organisation that is green and growing and that anticipates
and responds to changing customer, employee, System and community needs through
constant evolution and innovation.
Our Stakeholders
Stakeholders are those individuals, organisations and groups whom we affect and who affect
us. Our stakeholders include:
• Customers – the 1.7 million Australians who visit us every day. These are a wide range
of people from children to senior citizens who come to our restaurants in cities,
suburbs, regional centres and small towns all over Australia;
• Business partners – our 271 franchisees and our approximately 9,000 suppliers and
service providers;
• Employees – the more than 90,000 people employed in our restaurants and offices all
over the country;
• Opinion leaders and experts – health professionals, government, environmental
groups, media and more. These are the people we learn from and consult with on a
range of issues affecting our business.
We use various tools and resources to engage with our stakeholders on the issues that
matter to them. These include surveys and research, one on one communication and
meetings and our participation in forums, conferences and exhibitions. Our dialogue with
individual stakeholder groups impacts our activities both reinforcing and determining our
priorities.
McDonald’s Australia Limited 10
Copyright © 2013 McDonald'sSupporting Australian Packaging Covenant Goals
McDonald’s Australia’s Australian Packaging Covenant Action Plan supports the APC
objectives of design, recycling and product stewardship and builds on our past
achievements. It is robust and provides our entire System – inclusive of corporate and
restaurant-based staff, our licensee and supplier communities – with relevant and finite
actions to carry-out within a short-to-medium timeframe.
McDonald’s position in the packaging supply chain is a Brand Owner / Packaging User.
HAVI Global Solutions (HGS) is McDonald’s global packaging procurement partner. HGS
are based within McDonald’s Head Office and attend all relevant internal meetings that affect
packaging, such as Product Development and New Product Implementation Cross
Functional Teams. As our strategic partner for packaging procurement, HGS manage
McDonald’s expectations and APC commitments with regards to retail packaging and retail
packaging suppliers. HGS brings to the table a depth of knowledge both locally, and from a
zone and global level on packaging supply including materials, sustainability, alternative
sources and regulations.
Design
Environmental impact is one of five key criteria McDonald’s incorporates when developing
food and beverage packaging. We look to balance the environmental aspects of packaging
with functionality, cost, availability of materials and impact on operations.
From an environmental perspective, we focus on reducing the impact of our packaging from
design and sourcing of materials through to its end of life.
Packaging Material Strategy
McDonald’s Australia’s packaging material strategy is aligned with our global strategy and is
embedded in our packaging development through the use of the Eco-Filter2.0 tool to
compare different types of packaging options during development.
McDonald’s Australia’s packaging material strategy seeks to:
• Ensure that packaging solutions are developed in alignment with the material
hierarchy and McDonald’s policies.
• Ensure that the packaging portfolios meet end of life requirements.
• Provide support for further standardisation of the packaging portfolio to drive
consistency in branding.
To implement this strategy, McDonald’s Australia will leverage HGS, to:
• Develop technical and policy briefs to support product development and strategic
procurement in alignment with the material preferences, for example, evaluation of
sustainability issues related to using bioplastics produced from various feedstocks.
• Ensure that Product Development works closely with environmental experts to
identify new materials/developments that could improve the profile of the packaging
portfolio.
• Continue to leverage the Eco-Filter tool to evaluate individual packaging items and
use the EFPAT (Eco-Filter Portfolio Analysis Tool) to evaluate and improve on the
total packaging portfolio across Australia, and to help identify gaps, set targets and
evaluate progress.
McDonald’s Australia Limited 11
Copyright © 2013 McDonald's• Ensure packaging suppliers adherence to specifications and focus on sustainability
including fibre sourcing and ethical sourcing activities (Social Accountability) in
facilities.
Specifically in Australia, the packaging material hierarchy is focused on the following key
areas:
1. Can the item minimise packaging weight through optimisation?
One aspect of optimising packaging design is using the least amount of material required
to provide the required packaging performance. The amount of material affects the
environmental impact at the front end, during use and during end of life.
2. Can the packaging item be made using recycled materials? (Preference for post
consumer recycled content where permitted by law).
To ensure compliance with local regulatory requirements and standards, as a general
principle, recycled content paper and plastic will only be used in the countries or markets
where the materials are produced.
3. Can the packaging item be made from renewable materials?
With regards to renewable raw materials for consumer packaging, as part of McDonald’s
Sustainable Land Management Commitment, McDonald’s is committed to:
• Working with suppliers to ensure that renewable raw material-based products
originate from legal and acceptable sources. McDonald’s will not knowingly
purchase from suppliers that source otherwise.
• Giving preference to the purchase of renewable raw material-based products that
have earned credible, third-party certifications.
McDonald’s longer term goal is for all renewable raw material-based products to be
sourced from sustainably-managed land sources that are verified by credible, third-party
certification. We will encourage suppliers to demonstrate continuous improvement
towards this goal by working over time to achieve assurance for their raw materials.
4. If recycled materials cannot be used for the packaging, can virgin paper be sourced from
certified sustainable forestry sources?
5. If performance requires plastic-like properties, is there an option for a polymer made
from renewable resources?
If not, polyolefin (PET, PE, PP) is preferred to polystyrene.
McDonald’s environmental packaging review tool, Eco-Filter, has been used for the analysis
of all new packaging formats since 2010. The tool has been reviewed by GreenBlue, the US
non-profit sustainability institute, of which the Sustainable Packaging Coalition (SPC) is a
project. GreenBlue provided the following comment in relation to the Eco-Filter 2.0:
“The stated intention for the Eco-Filter tool is to enable a consistent approach to the
evaluation of packaging designs/formats against key environmental metrics aligned to
McDonald’s corporate values and sustainability goals. Overall Eco-Filter2.0 is well suited to
that task."
McDonald’s Australia Limited 12
Copyright © 2013 McDonald'sGreenBlue review of Eco-Filter2.0 tool The Eco-Filter2.0 scoring system includes the following six weighted criteria: 1. Package weight 2. Recycled vs. virgin material content 3. Renewable materials preference 4. Material health/regulated chemicals associated with the packaging material production 5. Greenhouse gas (GHG) emissions associated with the package (raw material extraction, conversion, disposal) 6. End of Life disposition (opportunities for recycling, composting, incineration with energy recovery) A platform update to the Eco filter tool was made in 2011 and hence Eco-Filter 2.1 is the current version now in use. McDonald’s Global Packaging Standards Consistency is synonymous with the McDonald’s brand. The quality criteria for our global core menu items are clearly defined by Gold Standards. These standards include sensory attributes, appearance and safety. McDonald’s have established a set of Gold Standards for packaging in addition to food, to ensure consistency of delivery to our customers. Packaging is globally and regionally reviewed for compliance to Gold Standard. McDonald’s Packaging Standards include the following criteria: • Operational performance (how the packaging is handled within the restaurant) • Product performance (e.g. heat retention) • Consumer performance (e.g. staining, moisture resistance, heat transfer, accessibility) • Regulatory compliance (e.g. food contact compliance, environmental compliance) • Material • Dimensions • Design • Sustainability (minimum Eco-Filter2.1 score) • Brand image / Graphics • Barrier / Coating Packaging choices may be constrained by the requirements to meet Gold Standards. McDonald’s Australia Limited 13 Copyright © 2013 McDonald's
Recycling & Use of Recycled Materials McDonald’s Australia will continue to drive market development through purchase of products made from recovered recyclable materials. This action will be applied across the relevant business units from consumer packaging to restaurant construction and fittings. We have processes in place to quantify the recycled material in our packaging and will develop and implement processes in the other areas of our business to capture volumes. In Australia, all of our plastic beverage cups and sundae cups are at least 35% recycled PET (rPET). Our take-out bags contain 50% recycled fibres and drink and dessert carriers are made from 100% recycled fibre. A majority number of our restaurants recycle the cardboard cartons that consumer packaging and ingredients are delivered in. Cardboard cartons account for approximately 30% of our solid waste. We are investigating opportunities to increase the diversion of waste to recycling, including restaurant trials. We will be working with industry groups to better understand Australia’s recycling capability including existing and future infrastructure to assist us in developing action plans to increase the recyclability of our waste packaging. A number of packaging items within our restaurants are re-usable, for example, our transport packaging for buns and English muffins are delivered in re-usable plastic crates, our dine-in orders are served on re-usable trays and our dine-in McCafe customers’ orders are served on crockery. Product Stewardship McDonald’s procures packaging, ingredients and services from reputable suppliers. McDonald’s ensures that businesses that it does direct and indirect business with meet our minimum expectations with regards to supplier workplace accountability (employment practices). This is verified by independent audits. In addition, all packaging suppliers supplying food-contact packaging must meet food safety requirements. The finished packaging product is tested for food approval biennially to international standards in an international laboratory. McDonald’s works closely with Martin Brower, a company dedicated to the distribution of McDonald’s restaurant supplies. Martin Brower collects and recycles all waste incoming cardboard and pallet wrap at each of their six (6) Australian DCs. In addition, Martin Brower provides a backhauling service to a number of our suppliers where it makes economic and geographic sense. In 2012, Martion Brower commenced collection of waste cooking oil from our Victorian restaurants which is converted to biodiesel and used to fuel the majority of their Victorian fleet. All of our branded packaging is labelled with an anti-litter message: McDonald’s Australia Limited 14 Copyright © 2013 McDonald's
McDonald’s Packaging Review against Sustainable Packaging
Guidelines
We have categorised our branded consumer packaging based on construction type and
material. We will review new packaging construction types as they are developed and will
progressively review existing packaging construction types as per the Packaging Review
Timeline below. A new graphic (e.g. promotional product) is not considered to be a new
packaging construction type.
Packaging Review Timeline
Packaging Category Packaging No. Packaging Review
Material Items Commencement
Date*
Bags Paper 8 Q1 2015
Coated
Cold and hot cups 10 Q3 2013
paperboard
Lids - paper cups Plastic 7 Q3 2013
Folding cartons Paperboard 23 Q1-2015
Plastic cups and lids Plastic 12 Q1 2014
Salad and dessert packaging Plastic 6 Q3 2013
Straws Plastic 2 Q4 2013
Cutlery Plastic 10 Q4 2013
Napkins / miscellaneous Paper 1+ Q2 2014
Wraps Coated paper 4 Q2 2014
Traymats Paper 1 Q1 2015
Liners Paper 1 Q1 2015
Stickers Compound 2 Q1 2015
Table 4
* NB Reviews are expected to be completed within six (6) months of commencement. This
includes decisions by key stakeholders but excludes implementation, which will be managed
on a case by case basis. Progress against both decisions and implementation, will be
reported in Annual Reports.
McDonald’s Australia Limited 15
Copyright © 2013 McDonald'sKey Performance Indicators
Covenant Goal 1 - Design
Optimise packaging to achieve resource efficiency and reduce environmental impact.
KPI 1 - Implementing the SPG for design or procurement of packaging
Action Responsibility Baseline data Performance Target
Maintain policy and procedures for evaluating and HGS Packaging Services QA & Eco-Filter2.0 has been used to review new Maintain review of 100% of new consumer packaging
procuring packaging consistent with the sustainable PD Manager packaging construction types since 2010 construction types against Eco-Filter2.1 ongoing.
packaging guidelines (SPG) and McDonald’s
values. Eco-filter reviewed and version 2.1 released
for use in 2013
Review existing consumer packaging using Eco- HGS Packaging Services QA & One round of reviews already completed in 2nd round review for 100% of existing consumer
Filter 2.1 as per the timetable (Table 4) PD Manager years 2011-2012. packaging items against Eco-Filter2.1 as per timetable
(Table 4).
Key stakeholders
Publish packaging changes resulting from reviews in
Annual APC reports.
Implement initiatives that deliver significant HGS Packaging Services QA & EFPAT score is used to assess sustainability EFPAT score calculated and reported annually. Baseline
improvements on the brands key metrics for PD Manager of the packaging portfolio. EFPAT scoring determined by December 2013
packaging sustainability criteria is currently being reviewed and a
baseline 2012 EFPAT Score as per the Year on year improvements in the EFPAT score.
revised criteria will be determined during 2013.
Table 5
McDonald’s Australia Limited 16
Copyright © 2013 McDonald'sCovenant Goal 2 – Recycling
Efficient collection and recycling of packaging.
KPI 3 - On-site recovery systems for recycling used packaging
Action Responsibility Baseline data Performance Target
Collaborate with waste service providers to expand National Sustainability Manager Cardboard from distribution packaging is collected Maintain current practice of Cardboard collected
the recovery of resources, including consumer from 100% of Company-owned restaurants where for recycling in 100% of Company-owned
packaging from our restaurant waste on-site where waste services are not managed by centre restaurants where feasible.
waste services are not centre managed and where management and where appropriate infrastructure
appropriate infrastructure exists and appropriate exists. Based on 2012 data, the average restaurant
costing is available. recycles approx 12 tonnes of cardboard annually.
Trials being conducted with organic recycling in 20 Complete a review of restaurant organics trial and
NSW restaurants with a diversion rate of 44%. develop a detailed list of improvement
Operational issues with staff not separating waste opportunities by July 2013.
streams correctly.
Milk Bottles are disposed of in general waste. Implement a Milk bottle recycling trial by March
2014 at a minimum of 10 restaurants.
Complete review of trial and develop business
case for full rollout to all company owned
restaurants where feasible by September 2014.
POP translites are disposed of in general waste. Complete investigation of infrastructure available
to recycle POP translites from restaurants and
present the opportunity for consideration via a
business case by December 2013.
A goal to divert 60% of waste from landfill for Improve diversion from landfill year on year across
company owned restaurants has been included in company owned restaurants focused on achieving
waste contracts since 2010. In 2012, average the 60% goal.
restaurant diversion rate was 33% based on the
available data provided by waste contractors nationally
in 2012.
Increase staff training on restaurant waste National Sustainability Manager In restaurant training conducted by approved crew Online training module for restaurant crew in place
management and APC goals. training staff using a checklist based approach. No by June 2014.
specific waste management training provided.
Completion of training reviewed annually.
Collaborate with our dedicated distribution provider Distribution QA Manager Plastic recycling at the Raymond Terrace DC during Increase recovery of used pallet wrap from
Martin Brower, to identify reverse logistics 2012 was 7.8 MT for the calendar year which can be restaurants by Integrating pallet wrap recovery via
opportunities to recovery clean waste streams from directly attributed to return of the pallet wrap from our reverse logistics in all states and DC’s by
our restaurants. restaurants. This pallet wrap would previously end up December 2015.
in general waste.
Maintain a policy for the recycling of used office and National Sustainability Manager A policy has been established to facilitate a consistent Review policy annually and adjust as necessary
print paper, and printer cartridges in all state offices. Approach to recycling of all office print toners. Recycle where continuous improvement opportunities exist.
bins are located at every work station and document
Security bins are provided.
Table 6
McDonald’s Australia Limited 17
Copyright © 2013 McDonald'sKPI 4 - Policy to buy products made from recycled packaging
Action Responsibility Baseline data Performance Target
Principles of sustainable procurement for consumer HGS Packaging Services 18% of fibre used in 2012 was from recycled sources. 100% of fibre for consumer packaging is recycled
branded packaging including preference for recycled Director 82% virgin fibre from legal and acceptable sources. or from legal and acceptable sources ongoing.
content are embedded in current business practice
and performance is measured.
Identify 2 key projects to introduce recycled fibre to HGS Packaging Services No specific targets to introduce recycled fibre to 2 projects identified in 2013 with targeted
products where no recycled content currently exists. Director products previously set execution in 2014.
Implement a system to measure recycled content of Sustainable Supply Manager Systems have been set up that require Suppliers to System fully implemented and information entered
distribution packaging. and National Purchasing specify recycled content of packaging used for new by all suppliers by December 2013
Manager. and existing products but have not been fully
implemented.
Review the use of recycled content of distribution A review of the recycled content used for
transport packaging. distribution packaging complete by March 2014
Formalise a policy on use of recycled materials with No formal policy exists to specify recycled content for Formal policy developed and integrated into
a preference for post-consumer recycled content distribution packaging. existing business practices including supplier
reviews by July 2014
Table 7
McDonald’s Australia Limited 18
Copyright © 2013 McDonald'sCovenant Goal 3 - Product Stewardship
Demonstrated commitment to product stewardship
KPI 6 - Formal processes for working with others to improve design, procurement and recycling of packaging
Action Responsibility Baseline data Performance Target
Improve packaging design. Refer to KPI 1 and our commitment to the SPG
Include resource recovery targets and reporting of National Sustainability Manager All states except NSW have single provider, state All Company owned restaurants to sign on to
performance in new waste management contracts for based contracts for waste collection for company State-based waste service contract at time of
Company-owned restaurants owned restaurants. renewal.
A target 60% waste diversion from landfill is included Contracted Waste service providers report to
and reported against for new and renewed waste McDonald’s monthly on diversion rates and weight
contracts since 2010. collected by restaurant. Transition reporting to
web-based reporting for easy access where
feasible for 100% of company owned restaurants
under waste contracts by September 2014.
Reporting is manual through a spreadsheet system. Implement a sustainability report covering key
recycling and other KPI’s back to company owned
restaurants to measure performance by December
2014
Work with our packaging suppliers to ensure that HGS Packaging Services 2012 Forestry Survey Results 100% completion of RRMSG Survey across all
wood fibre used in our supply chain originates from Projects Coordinator • 100% Legal Fibre Sources renewable raw material suppliers annually.
sustainable sources aligned with the principles of • 100% Acceptable Fibre Sources • 100% Legal Fibre Sources
McDonalds Sustainable Land Management • 100% surveys completed • 100% Acceptable Fibre Sources
Commitment. To this end, all suppliers are required
to verify the origin and legality of fibre sources. Develop a Fibre Certification roadmap identifying
path and actions required to achieve targets by
December 2013
Prepare system partners to institute business
processes necessary for Chain of Custody
certification by establishing and co-hosting FSC
and PEFC Chain of Custody Training seminars for
converters during 2013/14.
0% Packaging/Fibre certified chain of custody as of 100% Packaging/Fibre certified chain of custody at
December 2012 converter level by 2020
McDonald’s Australia Limited 19
Copyright © 2013 McDonald'sKPI 6 - Formal processes for working with others to improve design, procurement and recycling of packaging - CONTINUED
Action Responsibility Baseline data Performance Target
Work with industry to improve recycling and National Sustainability Manager Analysis of waste network in Australia was performed Continue collaborative efforts to identify and
recyclability of packaging materials by better / HGS Packaging Services in 2012. prioritise viable business solutions and develop a
understanding the recyclability of our restaurant Director business case to move forward during 2014.
waste packaging and availability of infrastructure by
region
Formal Business reviews completed with all Key National Purchasing Manager / Quarterly Business reviews completed with all Key Quarterly Business reviews completed and
suppliers inclusive of sustainability initiatives. HGS Packaging Services suppliers documented with all Key suppliers
Director
Annual Supplier Performance formally measured for Annual Supplier Performance formally measured,
suppliers that make up top 80% of food, paper and discussed and documented for suppliers that
operational supplies make up top 80% of food paper and operational
supplies
Advertise participation in the APC, and inform our Sustainable Supply manager Commitment to APC shared through our website and Statement prepared and shared with suppliers by
suppliers of our commitment to its principles. CSR report. Dec 2013
Table 8
McDonald’s Australia Limited 20
Copyright © 2013 McDonald'sKPI 7 - Demonstration of other stewardship outcomes e.g. litter reduction
Action Responsibility Baseline data Performance Target
McDonald’s Environmental scorecard is used as a Sustainable Supply Manager Direct supplier facilities supplying bakery, beef, pork, Report generated annually that assesses progress
continuous improvement tool for our suppliers to and HGS Packaging Services poultry, potato, and packaging located in Australia against goals for Zero waste, carbon reduction,
demonstrate leadership in environmental Projects Coordinator complete and submit an environmental scorecard and water stewardship.
responsibility and to enable quantitative within each annual reporting period.
measurement of the environmental impacts in the
manufacturing of our products.
Recognize leadership among our restaurants and Sustainable Supply Manager McDonalds Best of Sustainable supply and Best of Submissions received by September 2013 for
suppliers, and Encourage the sharing of best thinking Green are run every two years and was last run in review. Winners will be recognized on
and practices throughout the McDonald’s system via 2012. Programs invite suppliers / restaurants to submit www.AboutMcDonalds.com and at the Worldwide
McDonald’s Best of Sustainable supply and Best of initiatives. Entries to be judged by McDonald’s Global Convention in April 2014.
Green programs. Sustainable Supply Steering Committee and a Panel
of judges consisting of McDonald’s executives and
external experts for global recognition.
Introduction of Digital Menu boards National Sustainability Manager Currently we have 31 restaurants with an internal New restaurant design and remodels to transition
/ Design digital menu board solution to Digital Menu Boards where feasible post June
2013.
Introduction of LED Lighting. LED lights have a life National Sustainability Manager Existing restaurants use many lighting combinations Retrofit existing restaurants with LED lighting
span at least 5 times longer than other light globes including Halogen, Compact Fluro, T8 Tubing, and (where budgeting permits) to reduce electrical
leading to a reduction in light globe waste to landfill. Incandescent & Mercury Vapor. consumption and demand.
New lighting standard including LED lights front of
house and T5 tubes in back of house implemented
by July 2013 for all new designs.
Deliver internal training/engagement on HGS Packaging Services QA & No formal training/engagement conducted. Develop an internal training module aligned with
environmental packaging policies, procedures, tools PD Manager APC objectives and deliver to relevant
and achievements, stakeholders on a minimum annual basis. 1st
training delivered by December 2013.
Continue to include action plan outcomes in Corporate Communications APC-relevant outcomes included in most recent 2010 Inclusion of APC-relevant outcomes in McDonald’s
Corporate Social Responsibility reporting. Manager CSR report. Australia CSR reports.
Improve the work lives of employees in our supply Sustainable Supply Manager 100% suppliers signed code of conduct 100% suppliers signed code of conducts
chain through systems that promote leadership and and HGS Packaging Services 93% of supplier facilities completed an annual online 100% of supplier facilities complete annual online
accountability in accordance to Mcdonald’s Supplier Projects Coordinator self assessment in 2012 self assessment
Workplace Accountability (SWA) programme. 96% of supplier facilities have had one or more onsite 100% of supplier facilities have had one or more
audits as of Dec 2012. onsite audit.
Table 9
McDonald’s Australia Limited 21
Copyright © 2013 McDonald'sKPI 8 - Reduction in the number of packaging items in the litter stream.
Action Responsibility Baseline data Performance Target
Maintain restaurant litter patrol frequency and National Sustainability Manager From July 2010, litter patrols increased from 1 to 2 100% of restaurants completing patrols at required
compliance daily, for restaurants with extended trading hours and frequency (Where safe to do so)
who have a safe environment to do so
Maintain and grow Clean Up Australia Day National Sponsorship Manager In 2011 438 McDonald’s restaurants participated in Clean Up Australia Day restaurant participation
commitment CUA Day. increased by 10% each year.
In 2012 268 McDonald’s sites were registered Leverage McDonald’s marketing and in-store tray
participants in CUA Day with the reduction attributed to liners to support Clean Up Australia Day
inclement weather and flooding in parts of NSW.
Investigate options to reduce the number of HGS Packaging Services QA & No review of product packaging pieces undertaken. Identify a multipart packaging solution where ONE
separable packaging items per product. PD Manager element can be removed by December 2013.
Full Implementation of viable solution by
December 2014
Maintain branded packaging disposal labelling HGS Packaging Services McDonald’s Litterman logo is used on all branded McDonald’s Litterman maintained as a standard
Procurement Operations packaging inclusion on all branded packaging ongoing.
Manager
Table 10
McDonald’s Australia Limited 22
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