2014 Best of Sustainable Supply 1

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    ETHICAL|ENVIRONMENTAL |ECONOMIC

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    troduction Intro

    Welcome to McDonalds 2014 Best of Sustainable Supply.This year, we are delighted to honor 36 suppliers and 51projects that represent real innovation toward a moresustainable supply chain. Innovation is key to our CSRand sustainability journey, and McDonalds suppliershave an impressive track record of innovating for whatwe call sustainabilitys three Es: ethics, environment, andeconomics.

    All of their efforts are impressive, and the Best ofSustainable Supply helps us to identify the very bestpractices and innovations happening every day in oursupply chain, and to share that knowledge with othersuppliers. This year, we received 585 submissions, almost40 percent more than last time. Im delighted with theincrease, not just because we have even more outstandinginitiatives taking place in our supply chain, but becauseof what it says about McDonalds suppliers. Every year,our suppliers focus even more attention on sustainability,applying innovation to make a real difference for thepeople, communities, animals and environment that touchour supply chain. And the benefits dont end with us. Many

    of these innovations can bring about more widespreadchange in our suppliers own industries and in broadersociety.

    This years report again demonstrates that McDonaldssuppliers are world-class in their ability to provide a safe,sustainable, and assured supply of food and productsour customers love. We thank all the suppliers whocontributed and congratulate those who are recognizedhere.

    We hope you find as much inspiration in their storiesas we do.

    JOSE ARMARIOCORPORATE EX ECUTI VE VI CE PRES I DEN T, WORLDWI DE S UPPLY CH AI N ,

    DEVELOPMEN T AN D FRAN CH I S I N G

    Fifty-one case studies highlighting

    sustainable supply best practices

    from around the world

    TABLE OF CONTENTS

    Climate Change and Energy 4

    Water 9

    Waste 13

    Land and Biodiversity 16

    Human Health and Welfare 22

    Community Impact 24

    Economics 28

    Animal Health and Welfare 32

    Index 35

    ETHICS, ENVIRONMENT, ECONOMICS IN OUR SUPPLY

    CHAIN

    ETHICS Sourcing from suppliers who ensure the health and safety

    of their employees and the welfare and humane treatment of

    animals in our supply chain.

    ENVIRONMENT Working to ensure that our food, drinks and

    packaging and their production, distribution and use minimize

    lifecycle impacts on the environment.

    ECONOMICDelivering aordable food while supporting equitable

    trade practices and investment in the communities where our

    suppliers operate.

    These case studies were chosen from nearly 600 supplier submissions

    by the Sustainable Supply Steering Committee and a panel ofMcDonalds executives and external experts. We thank every supplier

    who took the time to tell us their story and remind us of the progress

    our entire supply chain is making toward sustainability.

    SUPPLIER LEADERSHIP

    McDonalds works closely with suppliers to continuously impro

    economic, ethical, and environmental impacts of our supply chsuppliers take this responsibility seriously and, in many cases,

    toward a more sustainable supply chain. Visit these online reso

    more about some of our eorts around the world.

    Asia-Pacific, Middle East, Africa:

    Our Food Your Questions

    Europe: Flagship Farmsand McDonalds

    Agricultural Assurance Programme

    Latin America: Arcos Dorados Holdings Inc

    (McDonalds developmental licensee in Lat

    America, and a publicly traded company)

    North America:The Road to Sustainability

    and Our Food. Your Questions.

    SUSTAINABLE SUPPLY STEERING COMMITTEE

    ASIA-PACIFIC, MIDDLE EAST, AFRICA:Brian Kramer

    EUROPE:Keith Kenny, Jacqui Macalister

    LATIN AMERICA:Leonardo Lima, Cristina Gomez-Garcia

    NORTH AMERICA:Susan Forsell, Je Fitzpatrick-Stilwell,

    Jessica Droste Yagan

    GLOBAL:Townsend Bailey, Michele Banik-Rake, Bruce Feinberg

    Gary Johnson, Rona Starr

    EXECUTIVE & EXTERNAL SELECTION PANEL

    BSR: Christine Bader

    CONSERVATION INTERNATIONAL: Bambi Semroc

    FARM ANIMAL INITIATIVE: Roland Bonney

    FORUM FOR THE FUTURE: Helen Clarkson

    GLOBAL ROUNDTABLE FOR SUSTAINABLE BEEF: Ruaraidh Petre

    GREENBIZ GROUP: John Davies

    MCDONALDS CORPORATION: Francesca DeBiase, Bob Langert

    THE SUSTAINABILITY CONSORTIUM: Kara Hurst

    SUSTAINABLE FOOD LAB: Hal Hamilton

    TECHNOSERVE: David BrowningWORLD RESOURCES INSTITUTE: Betsy Otto

    WORLD WILDLIFE FUND: Alex Bjork

    https://mcdonalds.com.au/your-questionshttps://mcdonalds.com.au/your-questionshttp://www.flagshipfarms.eu/McDE-Sustainability.phphttp://www.aboutmcdonalds.com/mcd/sustainability/library/best_practices/sustainable_supply_chain/maap.htmlhttp://www.aboutmcdonalds.com/mcd/sustainability/library/best_practices/sustainable_supply_chain/maap.htmlhttp://www.arcosdorados.com/http://www.mcdonalds.com/us/en/our_story/values_in_action/the_road_to_sustainability.htmlhttp://www.youtube.com/user/McDonaldsCanadahttp://www.youtube.com/user/McDonaldsCanadahttp://www.mcdonalds.com/us/en/our_story/values_in_action/the_road_to_sustainability.htmlhttp://www.arcosdorados.com/http://www.aboutmcdonalds.com/mcd/sustainability/library/best_practices/sustainable_supply_chain/maap.htmlhttp://www.aboutmcdonalds.com/mcd/sustainability/library/best_practices/sustainable_supply_chain/maap.htmlhttp://www.flagshipfarms.eu/McDE-Sustainability.phphttps://mcdonalds.com.au/your-questions
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    imate Change and Energy Climate Change and

    CATEGORYWINNER

    CATEGORYWINNER

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    imate Change and Energy Climate Change and

    Note:On light backgroundTea & C offeeto beRed in colour.

    Note:Ondark backgroundTea & C offeeto beYello incolour.

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    imate Change and Energy

    CATEGORYWINNER

    ONE TO WATCH

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    Water

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    Water

    CATEGORYWINNER

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    Waste

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    and and Biodiversity Land and Biod

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    Land and Biodiversity Land and Biod

    ONE TO WATCH

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    and and Biodiversity Human Health and W

    CATEGORYWINNER

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    Community Impact Community

    CATEGORYWINNER

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    Community Impact Community

    ONE TO WATCH

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    Economics Eco

    ONE TO WATCH

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    Animal Health and Welfare Animal Health and W

    CATEGORYWINNER

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    Animal Health and Welfare Animal Health and W

    CLIMATE CHANGE AND ENERGY

    Arla Foods 4

    Cargill 5

    Celulose Irani S.A. 5

    FrieslandCampina 8

    HAVI Logistics 6

    JBS SA 6

    J. R. Simplot Company 7

    Mother Parkers Tea and Coee Inc 7

    The Coca-Cola Company 8

    WATER

    Coca-Cola Iberia 10

    Dawn Meats 10

    Inghams Enterprises 9

    JBS SA 11

    Lamb Weston / Meijer 11

    McCain Foods Limited 12

    OSI Vista India 12

    WASTE

    BRF S/A 13,14

    ConAgra Foods 14

    DonKRC 15

    Farmer Brothers Coee, Tea, and Spices 15

    Peterson Farms Inc. 16

    LAND AND BIODIVERSITY

    Cargill 18

    East Balt Europe 18

    Espersen A/S 17

    Florette Spain 19

    Fonterra 19

    International Paper 17

    OSI Vista India 20

    The Coca-Cola Company 21

    Unilever Food Solutions 20

    HUMAN HEALTH AND WELFARE

    Axionlog Cold Solutions 22

    The Marketing Store Worldwide (Asia) Ltd. 23

    Tulip Ltd. 23

    COMMUNITY IMPACT

    Campbell Soup Company

    Cargill

    Farmer Brothers Coee, Tea, and Spices

    Manitowoc Foodservice

    MDC

    ECONOMICS

    Cargill

    Darigold

    Dawn Meats

    Farmer Brothers Coee, Tea, and Spices

    FrieslandCampina

    OSI Food Solutions Poland

    ANIMAL HEALTH AND WELFARE

    Cargill

    Dean Foods Co.

    FrieslandCampina

    Lakes Free Range Egg Company Ltd

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    www.aboutmcdonalds.comMcDonalds Global Best of Sustainable Supply is available on the web at www.bestpractices.mcdonalds.com.

    While youre there, check out McDonalds Global Best of Green, a collection of leading environmental best

    practices from McDonalds markets around the world.