McDonald's Corporation – Environmental Defense Waste Reduction Task Force

This report was collectively written by the members of the Environmental Defense-McDonald's Waste Reduction Task Force: for McDonald's, Terri Capatosto, Robert Langert, Keith Magnuson, and Dan Sprehe; for Environmental Defense, Richard Denison, Jackie Prince, and John Ruston.

 

Originally published in 1991

 

Introduction

On August 1, 1990, the McDonald's Corporation and Environmental Defense (Environmental Defense) joined forces in a unique collaborative project. In this effort, the nation's largest quick- service restaurant business and one of America's leading environmental research and advocacy organizations worked together to find ways to reduce McDonald's solid waste through source reduction, reuse, recycling and composting.

The results of the task force far exceeded our expectations and original goals. What started as a cautious venture for both parties ended in a successful partnership. While the task force originally intended only to recommend options for McDonald's to consider, the six month process instead produced a corporate Waste Reduction [1] Policy (Appendix 1) and a comprehensive Waste Reduction Action Plan (Appendix 2), both of which are already in effect.

Building on McDonald's past achievements, the Waste Reduction Policy will guide long-term activities throughout the McDonald's family of restaurants, distribution centers and suppliers. The Waste Reduction Action Plan contains 42 discrete initiatives, pilot projects and tests in the areas of source reduction, reuse, recycling and composting that McDonald's will undertake within the next two years.

The work of the task force took place against a backdrop of high public concern over solid waste disposal. Disposable packaging has taken center stage in discussions on solid waste management, in part because of its high visibility and short useful life. Disposable food-service packaging has emerged in response to changing American lifestyles, allowing people to eat meals at their convenience, whether at work, on the move, or at home. Quick- service restaurant packaging accounts for only a small fraction of municipal solid waste, so any complete solution to our solid waste problems will require actions across industries and by all consumers. Given this reality, Environmental Defense in particular desired to create a model approach that could be used by other companies. And as McDonald's new policy recognizes, being a business leader carries the responsibility of being an environmental leader as well.

The most promising solutions for diverting wastes from disposal lie in reduction, reuse, recycling and composting. [2] The task force sought to produce the maximum possible reduction in McDonald's solid waste in a way that was consistent with McDonald's business practices. In considering McDonald's packaging and other solid wastes, we looked at every aspect of McDonald's operations, including materials discarded behind-the-counter and by customers in the restaurant lobby, disposable packaging used in McDonald's take-out business, and the distribution and supply system.

Waste sorting studies conducted in part for the task force show that almost 80% of McDonald's on-premise waste, by weight, is generated "behind the counter," in the preparation area and restaurant supply system. Many of these waste materials, such as corrugated boxes, are candidates for source reduction and can also be identified and separated for recycling by the restaurant crew. The behind-the-counter component of McDonald's solid waste can also be reduced by substituting-reusable bulk storage systems for disposable ones. For example, McDonald's already utilizes reusable plastic trays for holding sandwich buns in place of corrugated containers and large steel canisters for storing Coke in place of cartons.

Packaging materials used by take-out and drive-thru customers (50 70% of the business, depending on a restaurant's location) cannot easily be collected by in-store recycling programs initiated by McDonald's. For these items, source reduction steps and design changes that allow packaging to fit into evolving community recycling programs will deliver the greatest environmental benefits.

The task force concluded that there is no single method for minimizing solid waste at McDonald's. Rather, there are a number of specific solutions that, collectively employed, will achieve significant waste reductions.

 

Origin of the Task Force

The origin of the task force dates to October 10, 1989, when Ed Rensi, president of McDonald's U.S.A., met with Fred Krupp, our executive director, at our request. McDonald's and Environmental Defense staff held several follow-up meetings and tours of McDonald's facilities. This built a working relationship and led Environmental Defense to propose a joint task force, which was formally announced on August 1, 1990.

At the outset, Environmental Defense recognized McDonald's substantial existing initiatives in recycling, and McDonald's interests in going further. McDonald's recognized our expertise in solid waste management and the importance of seeking expert opinions. In undertaking this project, McDonald's committed itself to an unprecedented level of scrutiny by an outside organization. In order to maintain the independence of the parties, the agreement that established the task force included several protections, including a provision that each side pay its own expenses.

The task force was comprised of four members from McDonald's and three from Environmental Defense. The McDonald's team included specialists from McDonald's own Operations and Environmental Affairs departments, and from the Perseco Company, McDonald's packaging purchaser. The Environmental Defense task force members were trained in biochemistry, chemical engineering, economics and environmental science. Among them, the Environmental Defense staff held 17 years of experience in analyzing solid and hazardous waste management issues. Short biographies of the task force members follow the Executive Summary.

 

The Task Force Work Process

The task force examined in detail only McDonald's materials use and solid waste issues in its U.S. operations, including its restaurants, distribution centers and suppliers. We took broader environmental impacts into consideration, in part to ensure that changes resulting in solid waste reductions would not create or exacerbate other negative environmental impacts.

The task force devoted considerable effort to understanding McDonald's business. Numerous hours were spent in various McDonald's restaurants, and the Environmental Defense task force members each worked in a restaurant for a day. The task force benefitted from the willingness of McDonald's and its suppliers to open their doors for a review of their operations. We toured the facilities of two McDonald's food suppliers, five packaging suppliers and one of McDonald's largest distribution centers. The task force also visited Plastics Again, a polystyrene recycling facility in Massachusetts, and Resource Conservation Services, a composting facility in Maine. Most of these visits included tours, formal presentations and extensive question and answer sessions with top management and technical experts.

During the course of this project, McDonald's brought in experts from various departments to discuss issues in depth. Likewise, additional Environmental Defense staff provided expertise on environmental issues beyond solid waste, as did experts from other environmental organizations.

There are more than 8,500 McDonald's restaurants in the United States. More than seventy-five percent of the U.S. restaurants are owned and operated by local, independent franchisees. The McDonald's Corporation establishes and maintains strict operating standards for the entire system. At the same time, decision-making is decentralized, allowing the flexibility to adapt to local conditions.

McDonald's is served by a network of almost 600 independent food, packaging and equipment suppliers. McDonald's does not own any of its suppliers, and is not a manufacturer. McDonald's relationships with its franchisees and suppliers is a partnership that entails mutual risks and rewards. The success of the McDonald's system is dependent upon the success of the local licensee. As a low margin, "penny-profit" business, McDonald's success depends on high sales volumes.

On the other side of the task force, Environmental Defense is a national nonprofit organization that links science, economics and law to create innovative, economically viable solutions to environmental problems. Environmental Defense was founded in 1967 by scientists on Long Island to fight the spraying of the pesticide DDT. With its headquarters now in New York City, Environmental Defense has grown to seven offices nationwide. our professional staff of over 110 scientists, economists, attorneys, engineers and administrators are supported by more than 200,000 members and over 100 private foundations.

 

Highlights of McDonald's Action Items

SOURCE REDUCTION. In a major source reduction step endorsed by the task force, McDonald's is completing a switch from polystyrene foam "clamshells" to paper-based wraps for packaging its sandwich items. The wraps provide a 70-90% reduction in packaging volume, resulting in significantly less space consumed in landfills. Compared to the polystyrene foam boxes they replaced, the new sandwich wraps also offer a substantial savings in energy used and substantial reductions in pollutant releases measured over full lifecycle of the package, according to Franklin Associates, an independent consulting firm.

Source reduction can similarly reduce environmental impacts in the production of paper packaging items. For example, McDonald's is systematically reviewing its use of chlorine bleached paper products with the intention of reducing the use of this type of paper wherever feasible. Because the practice of chlorine bleaching in the manufacture of white paper is a significant source of water pollution from paper mills, considerable environmental benefits can result from a shift to brown, unbleached paper, or paper bleached with more benign chemical processes. McDonald's is currently phasing in recycled brown paper carry-out bags and oxygen-bleached coffee filters in all of its restaurants. The new wrap for the Big Mac is also made with unbleached paper.

As a matter of policy, McDonald's will continue to evaluate and improve the environmental aspects of its packaging, guided by a detailed set of Waste Reduction Packaging Specifications developed by the task force (the specifications are listed in Chapter 1 of the Final Report). These specifications are being communicated to all of McDonald's nearly 600 suppliers, and will be given weight equivalent to McDonald's existing Packaging specifications for functionality, cost and availability.

REUSE. Behind-the-counter restaurant supply operations provide the greatest near l term opportunities to cut waste by replacing disposable containers or products with reusable bulk storage systems. For example, in 1991 McDonald's will test reusable, shipping containers for condiment packets, bulk storage containers for cleaning supplies, durable shipping pallets in distribution centers, and reusable coffee filters. For in store customer service, McDonald's will test pump-style condiment dispensers in place of individual packets, a system for filling customers' reusable coffee cups, and reusable lids for salads and breakfast entrees.

RECYCLING. According to waste composition studies, 34% by weight of the solid waste generated at a typical McDonald's restaurant consists of corrugated shipping containers. By the end of 1991, McDonald's restaurants will be recycling corrugated boxes nationwide.

Coated and uncoated paper food-contact items such as sandwich wraps, french fry cartons and cold drink cups make up 11% of on-premise waste. In 1991, McDonald's will assess the recyclability of this type of paper packaging in a 30-restaurant test. McDonald's will also continue to evaluate a processing system developed in southern California to recover, for later recycling or composting, the majority of materials discarded by customers in the restaurant lobby and in behind-the-counter operations.

McDonald's will also initiate a pilot program in approximately 200 restaurants to collect and recycle polyethylene used for inner wraps and shipping packages (e.g., the plastic bags that contain sandwich buns) and for jugs and other containers. These polyethylene materials account for another 3% of the weight of McDonald's on-premise waste. To facilitate polyethylene recycling, McDonald's will "homogenize" its use of this material, using only one type of plastic film for wraps and bags.

In April of 1990, McDonald's announced that it would continue to support recycling by helping to "close the loop" through purchasing products made from recycled materials. Through the McRecycle U.S.A. program, McDonald's has committed to purchasing over $100 million worth of recycled materials for restaurant construction and renovation annually, a goal that will be met in 1991.

McDonald's is currently the largest user of recycled paper in its field. Building on this experience, McDonald's has directed its nearly 600 suppliers to use corrugated boxes that contain at least 35% recycled materials, a target considerably higher than the industry average. McDonald's has directed its suppliers to maximize the percentage of recycled "postconsumer"" materials (materials that have served their end use and would otherwise be discarded into the waste stream, and are in need of expanded markets, as opposed to manufacturing scrap, which is already commonly recycled). McDonald's brown, recycled carry-out bags contain 5(3% post-consumer content, and the 100% recycled napkins that will be used in all restaurants by August of 1991 will contain at least 30% post-consumer recycled content. Although McDonald's ability to use post-consumer materials in food- contact packaging is limited by federal regulations and health concerns, McDonald's will work with its suppliers to incorporate post-consumer content in such packaging wherever possible and allowable.

COMPOSTING. About 34% of McDonald's on-premise waste consists of organic materials such as eggshells, coffee grounds and other food scraps. Used paper items such as discarded napkins represent another essentially organic component of McDonald's waste. Two tests are now underway to evaluate whether this waste fraction can be composted into a high quality soil or humus product. These tests include a series of controlled experiments to evaluate the compostability of various paper packaging items, and a pilot program involving ten stores in the Northeast that are sending their partially separated organic materials to a composting facility in Maine. The switch to paper-based sandwich wraps produced and enhanced composting possibilities.

By the end of 1991, McDonald's will have in place programs to recycle or to test the recycling or composting potential of more than 80% by weight of all on-premise waste. McDonald's will continue to investigate ways to reduce or recycle remaining waste materials.

INSTILLINGTHE WASTE REDUCTION COMMITMENT. As described in Chapter 6, the last but most important chapter of our Final Report, McDonald's Waste Reduction Policy will be adopted throughout the McDonald's system, including the home and regional offices, restaurants, distribution centers and suppliers. The Waste Reduction Action Plan clearly defines the company's waste reduction activities and initiatives, identifies their status, the departments responsible for implementation and the management mechanisms that ensure integration into McDonald's standard operating procedures. McDonald's senior environmental affairs officer will regularly report to the board of directors on progress toward the company's waste reduction goals, which will also be communicated to McDonald's customers, shareholders, suppliers and employees.

 

Chapter Summaries: Waste Reduction Rationale

The task force's Final Report is organized into six chapters, which provide the indepth rationale for McDonald's Waste Reduction Policy and Action Plan. The major conclusions of each chapter are summarized below.

Chapter 1: Setting the Stage for Waste Reduction

The task force realized at the outset that we would need a common basis for evaluating and comparing the many waste reduction- options that could conceivably be adopted by McDonald's. To meet this need, the task force agreed to and defined five criteria that would be used to evaluate any solid waste management option. These are: (1) consistency with the waste management hierarchy of reduce, reuse, recycle (compost), incinerate/landfill; (2) the magnitude of environmental impact resulting from a change; (3) public health and safety effects; (4) practicality; and, (5) economic costs and benefits, both to McDonald's and to the public. These criteria were used with the understanding that the fundamental nature of McDonald's business is to serve hot, fresh food in high volumes quickly and efficiently, to both in-store and take-out customers.

In some cases, existing local, state or federal regulations may affect McDonald's ability to implement a given solid waste reduction option. Therefore, any proposed changes must be viewed in light of existing regulatory constraints.

In order to provide a consistent methodology for evaluating options, the task force took several other guidelines and concepts into consideration. To the extent possible, we considered "lifecycle" impacts and tradeoffs among solid waste reduction options. In developing McDonald's new Waste Reduction Packaging Specifications (outlined in Chapter 1 of the Final Report), we adopted and significantly built upon the "preferred packaging guidelines" developed by the Coalition of Northeastern Governors' (CONEG) Source Reduction Council.

The CONEG guidelines directly apply the waste management hierarchy to the design, composition and function of packaging materials, as well as the management of materials once they become waste. In order of preference, the guidelines are:

  1. Elimination of the package or packaging material where such items are not necessary to the protection, safe handling or function of the package contents.
  2. Reduction of the package or packaging material if reduction does not result in a net increase in negative health, environmental or solid waste impacts.
  3. Design and manufacture of packages and packaging material to be returnable, refillable and/or reusable.
  4. Where source reduction would lead to negative health, environmental or solid waste impacts, packaging waste should be reduced by, first, designing and manufacturing packages and packaging materials to be recyclable and, second, increasing the recycled content of these materials. A package that is recyclable and is made of post-consumer recycled material is preferred.

The task force considered the role of disposable packaging in the McDonald's system in detail. McDonald's purchases packaging to fit the food-service needs of its customers and to ensure that its menu items meet strict standards for Quality, Service, Cleanliness and Value. Within these parameters. McDonald's is neutral as to the types of packaging used, but also recognizes that different packaging choices can have different environmental impacts, which the company has a responsibility to minimize.

Traditionally, McDonald's has selected its packaging guided by specifications that take into account three major factors: availability, functionality and cost. Within these overall areas, a wide range of individual factors are analyzed, including effects on food taste and presentation (e.g., heat and moisture retention), production and printing capabilities, availability of raw materials and impacts in the distribution system.

As a result of the task force's work, a fourth primary consideration -- waste reduction -- has been added and given weight equivalent to the three traditional criteria.

Detailed information on the composition of McDonald's packaging and solid waste was provided by four separate studies, including the Perseco "Primary Packaging Classification Report," on-premise waste characterization studies conducted at two restaurants, a packaging materials audit conducted in a restaurant storeroom, and a survey of McDonald's distribution centers. One significant finding was that about 80% of McDonald's on-premise waste (by weight) is generated behind the counter.

Chapter 2: Source Reduction

Source reduction occupies the highest tier in the waste management hierarchy because of its benefits throughout the lifecycle of a product or package. Effective source reduction means using less material that must be manufactured, shipped, stored and eventually discarded and managed as waste, whether through disposal or recycling. For this reason we placed the highest priority on source reduction in our evaluation of McDonald's materials use and waste management practices. McDonald's past packaging reduction efforts often produced cost savings as well as environmental benefits, which underscores how source reduction can deliver economic gains.

Most source reduction actions require extensive research, development, engineering and testing. As the Waste Reduction Action Plan shows, source reduction requires a combination of activities, many of which customers will rarely see but will collectively produce major results. What appear as simple source reduction ideas are usually more complex. For example, in principle it would seem simple not to use lids on cold drinks served to in-store customers. The task force reviewed several tests in Canada where McDonald's tried this step, but encountered problems. For example, customers were concerned about spills, and some perceived that McDonald's was being "cheap." Lids are also used to identify drinks; the effects of mistaking one soft drink for another range from the inconvenient to the potentially serious (e.g., a diabetic individual being served a regular rather than a diet drink). In Canada, customers can now be served without lids at their request. McDonald's is continuing to test this concept.

The formation of the task force intensified and broadened McDonald's source reduction activities. We identified three categories of options, which are not mutually exclusive: packaging reductions, reduction of production impacts, and reduction of disposal impacts. As the Action Plan shows, McDonald's is taking steps in all of these areas.

Chapter 3: Reuse

Reuse is a basic strategy for reducing materials use and waste generation. Identifying opportunities for introducing reusables throughout McDonald's system -- distribution, bulk storage and food preparation, as well as customer service -- was a large part of the task force's work. The greatest opportunities in this area are behind the counter, where the majority of McDonald's on-premise waste is generated. As set out in the Action Plan, steps to be implemented or tested in 1991 include: replacing heavy-duty, plastic-lined corrugated boxes with durable, washable containers for delivering meat and poultry to McDonald's suppliers; replacing short-lived wooden shipping pallets with durable pallets in the distribution centers; and replacing single portion packages of cleaning supplies with bulk packaging.

McDonald's will also develop a number of pilot tests to explore the potential benefits of reusables in over-the-counter service. This area, we concluded, poses the most formidable challenges to the large-scale conversion to reusables. As a step toward defining solutions, the task force identified five major challenges to implementing reusables in a quick-service restaurant system. These are: (1) customer expectations; (2) health, sanitation and safety issues; (3) McDonald's operating system; (4) dishware collection, handling, washing and resanitizing; and, (5) cost and data uncertainty.

While any one challenge might be met in isolation from the others, the real challenge for McDonald's is to overcome all of them at once. For example, McDonald's Engineering Department could design high-volume dishwashers suitable to the task, and a shift to reusables for customer service could conceivably produce savings in expenditures on disposable packaging. However, other major issues remain unresolved, such as the capital costs of the system, pilferage, the added labor costs to collect dishware and load and unload the dishwasher, the economic and environmental effects of energy and water used in dishwashing, and the ability of a restaurant crew to operate the equipment in a way that consistently meets sanitation standards.

We agreed that reusable dishware systems from conventional full-service restaurants cannot simply be transposed to McDonald's while maintaining its high-volume, high-speed food service system. The task force also discussed more long-term, theoretical options for reconfiguring McDonald's equipment and operations to incorporate food-service reusables.

Ultimately, full resolution of these issues will depend on incremental testing and R&D activities of the type that are central to McDonald's operations and packaging development.

Chapter 4: Recycling

Recycling offers McDonald's one of the best near-term opportunities to reduce the disposal of materials and instead return them to productive use. McDonald's is committed to recycling everything it can from its restaurants, including behind-the-counter and over-the-counter waste materials. McDonald's expertise in managing logistically complex endeavors will be valuable in establishing successful recycling programs. However, solid waste disposal practices, costs, hauling contracts and the availability of recycling and composting services vary regionally and locally. McDonald's will thus encourage and depend on established companies and recycling entrepreneurs to provide the collection, processing and marketing infrastructure for recyclable materials. It is important to recognize that while McDonald's corporate office can mandate a packaging change for all restaurants, it cannot mandate the use of a specific recycling program on a national basis unless the infrastructure is available.

Mirroring its commitment to develop recycling collection programs, McDonald's will continue to leverage its purchasing power to build end-markets for a wide range of products that contain recycled materials. Currently, 29% of McDonald's paper packaging is made from recycled materials, virtually entirely in the area of non-food-contact packaging, such as carry-out bags, drink trays for the drive-thru business and Happy Meal boxes.

The greatest need for new recycling markets is in the area of post-consumer materials. In practical terms, U.S. Food and Drug Administration regulations restrict the use of post-consumer recycled materials in food-contact packaging. McDonald's best immediate opportunities for increasing its use of post-consumer recycled materials thus lie in the areas of indirect packaging and restaurant equipment, construction and renovation supplies. However, McDonald's is committed to pursuing, and urging its suppliers to pursue, the use of recycled content in food-contact applications (e.g., the outer layer of the new layered sandwich wraps) where possible within federal guidelines and McDonald's own strict standards for health and sanitation.

It is unlikely that McDonald's will be able to collect and recycle materials that leave the restaurant with customers. Recycling of these items is dependent on community programs, which are currently in a state of evolution. Wherever possible, McDonald's will make changes to the composition of its packaging materials to ensure their compatibility with local recycling infrastructures.

Chapter 5: Composting

In the United States, composting is an established waste management tool for dealing with organic materials such as leaf and yard waste and sewage sludge. In Europe and Japan, composting techniques have been successfully extended to more complex and heterogenous materials such as food scraps and food-contaminated paper. Through a series of tests that were initiated during the task force's work and which will continue for some time, McDonald's intends to pioneer the application of composting in the U.S. quick-service restaurant industry. The goal of McDonald's testing programs is to gain a better understanding of the separation, collection and processing requirements for composting of quick-service restaurant waste. Given the limited experience with commercial restaurant composting, evaluating tradeoffs will be an important part of developing a successful program.

By definition, both paper and food wastes are organic materials that can be composted. Because recycling represents a higher end-use for paper products, McDonald's will strive to recycle rather than compost paper products wherever possible. In principle, a combination of recycling and composting could divert over 80% of McDonald's on-premise restaurant waste, by weight.

McDonald's will evaluate all packaging annually to identify potential changes to packaging specifications that will- enhance composting initiatives.

Chapter 6: Instilling the Environmental Commitment

The key to ensuring that waste reduction endures and thrives at McDonald's lies in processes that institutionalize the waste reduction commitment. To do so, McDonald's will incorporate waste reduction goals and initiatives into its existing array of mechanisms used to analyze, plan and evaluate its suppliers, licensees and company operations. For example, McDonald's will: incorporate waste reduction and management goals into annual supplier business reviews and evaluate progress toward them with each supplier; ensure that all suppliers meet McDonald's 1989 directive to reduce overall solid waste by 15% by December, 1991; incorporate waste reduction goals and audits into the annual distribution center evaluations; and track source reduction steps, increased use of recycled products and materials and the status of recycling and composting initiatives on a quarterly basis, and make this information available upon request.

In combination, these steps will ensure that waste reduction becomes central to McDonald's daily operations and that all levels of the system participate. McDonald's is increasingly challenging and charging all of its suppliers to be environmentally proactive with their own products and businesses -- that is, to become innovators, inventors and developers of environmentally preferable products and packaging.

In summation, the task force process worked; the evidence is in the scope of McDonald's Waste Reduction Policy and Action Plan, and in the task force's Final Report. The changes that McDonald's customers will-see and those that will go on behind the counter are being made part of McDonald's everyday way of doing business, and will endure long beyond the task force. The Action Plan makes waste reduction central to operations and packaging development at McDonald's. This across-the-board commitment to instilling environmental concerns at all levels of the system is good for the environment and good for McDonald's business.

 

Appendix 1
McDonald's Waste Reduction Policy

McDonald's -- Our Commitment to the Environment

McDonald's believes it has a special responsibility to protect our environment for future generations. This responsibility is derived from our unique relationship with millions of consumers worldwide whose quality of life tomorrow will be affected by our stewardship of the environment today. We share their belief that the right to exist in an environment of clean air, clean earth and clean water is fundamental and unwavering.

We realize that in today's world, a business leader must be an environmental leader as well. Hence our determination to analyze every aspect of our business in terms of its impact on the environment, and to take actions beyond what is expected if they hold the prospect of leaving future generations an environmentally sound world. We will lead, both in word and in deed.

Our environmental commitment and behavior is guided by the following principles:

Effectively managing solid waste -- We are committed to taking a "total lifecycle" approach to solid waste, examining ways of reducing materials used in production and packaging, as well as diverting as much waste as possible from the solid waste stream. In doing so, we will follow three courses of action: reduce, reuse and recycle.

Reduce -- We will take steps to reduce the weight and/or volume of packaging we use. This may mean eliminating packaging, adopting thinner and lighter packaging, changing manufacturing and distribution systems, adopting new technologies or using alternative materials. We will continually search for materials that are environmentally preferable.
Reuse -- We will implement reusable materials whenever feasible within our operations and distribution systems as long as they do not compromise our safety and sanitation standards, customer service and expectations, nor are offset by other environmental or safety concerns.
Recycle -- We are committed to the maximum use of recycled materials in the construction, equipping and operations of our restaurants. We are already the largest user of recycled paper in our industry, applying it to such items as tray liners, happy meal boxes, carry out bags, carry out trays and napkins. Through our "McRecycle" program, we maintain the industry's largest repository of information on recycling suppliers, and will spend a minimum of $100 million a year on the use of recycled materials of all kinds. We are also committed to recycling and/or composting as much of our solid waste as possible, including such materials as corrugated paper, polyethylene film and paper. We will change the composition of our packaging, where feasible, to enhance recyclability or compostability.

Conserving and protecting natural resources -- We will continue to take aggressive measures to minimize energy and other resource consumption through increased efficiency and conservation. We will not permit the destruction of rainforests for our beef supply. This policy is strictly enforced and closely monitored.

Encouraging environmental values and practices -- Given our close relationship with local communities around the world, we believe we have an obligation to promote sound environmental practices by providing educational materials in our restaurants and working with teachers in the schools.

We intend to continue to work in partnership with our suppliers in the pursuit of these policies. Our suppliers will be held accountable for achieving mutually established waste reduction goals, as well as continuously pursuing sound production practices which minimize environmental impact. Compliance with these policies will receive consideration with other business criteria in evaluating both current and potential McDonald's suppliers.

Ensuring accountability procedures -- We understand that a commitment to a strong environmental policy begins with leadership at the top of an organization. Therefore, our environmental affairs officer will be given broad-based responsibility to ensure adherence to the environmental principles throughout our system. This officer will report to the board of directors on a regular basis regarding progress made toward specific environmental initiatives.

On all of the above, we are committed to timely, honest and forthright communications with our customers, shareholders, suppliers and employees. And we will continue to seek the counsel of experts in the environmental field. By maintaining a productive, ongoing dialogue with all of these stakeholders, we will learn from them and move ever closer to doing all we can, the best we can, to preserve and protect the environment.

 

Appendix 2
McDonald's Waste Reduction Action Plan

REDUCE: Elimination of packaging; reduced use of material in packaging; use of alternate materials which reduce production impacts.

  1. Complete the conversion from polystyrene clamshells to paper-based wraps by April, 1991.
  2. Use paper products which utilize more benign bleaching processes, or use unbleached paper products wherever feasible. As a part of its ongoing action in this area, McDonald's has made the following changes in 1991:

McDonald's will explore other opportunities in such areas as napkins, cups, and other wraps, and continue to set annual objectives.

  1. Annually evaluate all food service products and packaging items to identify opportunities and establish goals for source reductions. As examples:
  1. Annually analyze all shipping packaging to determine items which could be eliminated or reduced.

REUSE: The substitution of reusable items for disposable items in shipping, handling, storage and restaurant operations both behind and over the counter.

  1. Continue the development and use of reusable shipping containers to replace disposable corrugated containers wherever possible.
  1. Complete testing of bulk cleaning supplies in place of single portion packets by March, 1992.
  2. Develop and test durable shipping pallets for use in the movement of goods in 3-5 distribution centers by December, 1991.
  3. Test and evaluate reusable coffee filters by June, 1991.
  4. Test and evaluate reusable lids for salad and breakfast entrees in several restaurants by September, 1991.
  5. Develop and test a refillable coffee mug by December, 1991.
  6. Develop and test bulk condiment dispensers for customer use by December, 1991.

RECYCLE/COMPOST: The following action steps address ways McDonald's will recycle and or compost waste generated in all aspects of its business; and, increase its use of recycled materials of all kinds in its operations thus helping to develop markets for recycled products nationwide.

  1. Complete the implementation of corrugated recycling in U.S. McDonald's restaurant by the end of 1991.
  2. Work within the emerging polyethylene recycling infrastructure to establish a comprehensive low-density polyethylene film recycling program in at least one region (approximately 200 restaurants) by the end of 1991.
  3. Conduct a controlled compost test of key packaging items to assess their compostability.
  4. Initiate, in March, 1991, a composting test using waste from ten Northeast restaurants in order to determine the feasibility of composting McDonald's waste.
  5. Evaluate all packaging annually to identify potential changes that will enhance either recycling or composting initiatives as they develop.
  1. Continue to evaluate the total waste sorting and materials recovery approach currently in test with McDonald's restaurants in southern California through 1991, as a means to recover as much of the waste stream as possible.
  2. Complete the phase-in of brown, recycled content carry-out bags with a minimum of 50 percent post-consumer content by April, 1991. Increase the total recycled content of carry-out bags to 100 percent by September, 1991.
  3. Increase the amount of recycled content in napkins to 100 percent, with a minimum of 30 percent post-consumer material, by August, 1991.
  4. Ensure that all McDonald's suppliers are using corrugated boxes that contain at least 35 percent recycled content by December, l99l.
  5. Review recycled content targets for corrugated boxes annually and establish new targets as technology and increased supply permit.
  6. Maximize the use of post-consumer recycled content wherever possible, available and allowable under regulations. McDonald's will work with suppliers on an ongoing basis to develop and seek approval for the use of post-consumer recycled materials in direct food-contact applications.

ACCOUNTABILITY: Systematize solid waste reduction and management practices into McDonald's standard operating procedures and its packaging/product specifications.

  1. Incorporate waste reduction and management goals into the annual supplier business reviews and evaluate progress toward them with each supplier.
  1. Incorporate waste reduction goals and audits into the annual distribution center evaluations ("Full Fields").
  2. Continue to conduct annual supplier environmental conferences held by McDonald's and Perseco to highlight new opportunities for waste reduction as well as other important environmental issues.
  3. Incorporate the solid waste reduction criteria developed by the task force into all packaging specifications by April, 1991.
  4. Incorporate the Waste Reduction Packaging Specifications into the packaging decision making process to be considered equivalent to the existing criteria of functionality, cost and availability. The new specifications will be formalized and communicated to all suppliers by June, 1991.
  5. Track source reductions, increase use of recycled products and materials, and the status of recycling and composting initiatives on a quarterly basis, and make this information available upon request.
  6. Continue to conduct annual waste characterization studies to establish waste reduction goals for the upcoming year.

 

Biographies of Task Force Members

Terri K. Capatosto, Director of Communications, McDonald's Corporation
Terri Capatosto joined McDonald's Corporation in 1984 and is responsible for managing McDonald's interaction with local and national news media as well as providing communications counsel, support and training to the company's corporate and regional management and local owner-operators. Since 1988 she has also held specific responsibility for environmental issues, working with Operations, Purchasing, Environmental Affairs and other key departments within McDonald's on the company's environmental initiatives. Ms. Capatosto has received numerous awards for leadership and outstanding performance, including McDonald's President's Award in 1987, awarded to the top one percent of McDonald's employees worldwide. Before joining McDonald's, Ms. Capatosto was a Captain in the U.S. Marine Corps; she currently serves as a Major in the U.S. Marine Corps Reserve. Ms. Capatosto holds B.A. degrees in Psychology and Music from the University of Utah.

Richard A. Denison, Senior Scientist, Environmental Defense
Richard Denison, who holds a Ph.D. in Molecular Biophysics and Biochemistry from Yale University, specializes in hazardous and solid waste management issues ranging from waste reduction and recycling to the health effects and regulatory requirements of landfilling and incineration. Prior to joining Environmental Defense in 1987, Dr. Denison was an Environmental Analyst at the U.S. Congress' Office of Technology Assessment and also conducted cancer research in a postdoctoral position at the University of California, San Francisco. Dr. Denison is a frequent expert witness before local, state and federal authorities in the U.S. and Canada, and is a member of the Board of Directors of the Coalition of Northeastern Governors' Source Reduction Council. He has authored or co-authored numerous papers and reports on solid and hazardous waste management, and a recent book, Recycling and Incineration: Evaluating the Choices.

Robert L. Langert, Director of Environmental Affairs, The Perseco Company
Bob Langert is responsible for managing projects related to source reduction, recycling and other waste management alternatives for the Perseco Company, the exclusive packaging purchaser for McDonald's. His responsibilities include assisting in the coordination of McDonald's recycling initiatives across the country, and working with an extensive group of packaging suppliers on waste reduction initiatives. Prior to joining the McDonald's family, Mr. Langert was an operations manager for a McDonald's distributor, Perlman Rocque, and served as Midwest logistics manager for the American Hospital Supply Corporation. Mr. Langert is a graduate of Northwestern University's M.B.A. program.

Keith Magnuson, Director, Operations Development Department, McDonald's Corporation
As Director of Operations Development for McDonald's, Keith Magnuson works on the development of new operating systems and improvements in store operations for the company's restaurants worldwide. Most recently, he has been involved in the development of McDonald's instore recycling programs, packaging source reductions and other environmental initiatives. Mr. Magnuson first worked for McDonald's as a crew person in Severna Park, Maryland. Over the past seventeen years, he has held numerous positions of increasing responsibility, including store manager, area supervisor, field consultant and operations development manager. Mr. Magnuson attended the University of Maryland.

S. Jackie Prince, Staff Scientist, Environmental Defense
Jackie Prince conducts research on a variety of solid waste issues, including recycling technologies and the use of product lifecycle assessments in evaluating consumer products. Ms. Prince holds Master's degrees from Yale University in Public and Private Management and in Environmental Studies, and received her B.S. in chemical engineering from Yale College. Ms. Prince is a former Project Manager/Engineer for the Waste Management Division of the U.S. Environmental Protection Agency, Region I, where she received the EPA 1986 Award For Excellence, and a former Policy Analyst with Jellinek, Schwartz, Connolly and Freshman, Inc. She is the author of Wetlands Assessments at Hazardous Waste Sites and Assessment of PCB Contamination in New BEnvironmental Defenseord Harbor.

John F. Ruston, Economic Analyst, Environmental Defense
With a Master of City Planning degree (environmental policy specialization) from the Massachusetts Institute of Technology, Mr. Ruston works on issues that link economic development and environmental quality. Topics include market development for recycled materials, waste reduction, the economics of large-scale recycling, and paper and plastics manufacturing processes. Mr. Ruston is co-author of Coming Full Circle: Successful Recycling Today , Recycling and Incineration: Evaluating the Choices , and a cost comparison of recycling and solid waste incineration, The Economic Case for Recycling: Evidence From the Brooklyn Navy Yard Hearings . Mr. Ruston received his B.S. from the University of California, Davis, where he also completed graduate work in economics and computer modeling.

Dan Sprehe, Environmental Affairs Consultant, Government Relations Department, McDonald's Corporation
Dan Sprehe's duties in McDonald's Government Relations Department include internal research on recycling and source reduction issues as well as serving as a McDonald's corporate spokesperson to environmental and government groups. Mr. Sprehe was previously a legislative analyst for the Illinois General Assembly's Senate Energy and Environmental Committee, where he helped draft legislation on numerous environmental issues, including the Illinois Solid Waste Management Act. Mr. Sprehe holds a B.S. in Political Science from Eastern Illinois University.

 


FOOTNOTES

1. In this report "waste reduction" refers to actions that reduce the quantity or toxicity of solid waste requiring disposal in landfills or incinerators. "Source reduction" is construed more narrowly, referring to measures that reduce the weight, volume or toxicity of products and packaging prior to their use. Back to text.

2. One of the reports on solid waste management reviewed by the Task Force was Recycling and Incineration: Evaluating the Choices , edited by Environmental Defense task force members Richard Denison and John Ruston (Washington DC: Island Press, 1990, 320 pages). To obtain a copy or receive more information, write for the Environmental Defense Solid Waste Publications List; Environmental Defense, 1875 Connecticut Ave, NW, Washington, DC 20009. Back to text.

 


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