I’m Lovin’ It! McDonald’s in green supply chain push

Eight new corporations, including global brands McDonald’s and L’Oréal, have joined a green supply chain initiative. They aim to leverage their purchasing power to achieve deforestation-free commodity supply chains as […]

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By Priyanka Shrestha

Eight new corporations, including global brands McDonald’s and L’Oréal, have joined a green supply chain initiative.

They aim to leverage their purchasing power to achieve deforestation-free commodity supply chains as CDP expands its green initiative.

The firms include McDonald’s Latin American franchise Arcos Dorados, Swiss fragrance firm Firmenich, Brazilian meatpacker JBS, US healthcare company Johnson & Johnson, Brazilian paper producer Klabin and Canadian restaurant group Restaurant Brands International.

They are working with CDP to gather information from their key suppliers on how they are managing the risks linked to deforestation.

Forests play a critical role in reducing global warming as deforestation is said to be responsible for around 10% – 15% of global greenhouse gas emissions as well as habitat loss and social conflict.

According to CDP, deforestation represents a “significant business risk”, with its 2016 analysis revealing as much as $906 billion (£699bn) in annual turnover could be at stake.

Dexter Galvin, Head of Supply Chain at CDP said: “Ending deforestation will be fundamental to global efforts to prevent dangerous climate change. With such a large proportion of company revenues attached to commodities in their supply chain that are driving deforestation, this is now a critical business issue.

“Supply chains are like rows of dominoes: if unsustainable commodities enter the top of a supply chain, the effects will cascade throughout. Collaboration with suppliers is therefore essential for companies to reduce their exposure to deforestation and meet their zero deforestation targets – which makes sense for the bottom line and the planet.”

A total of 400 members of the Consumer Goods Forum, representing $3.9 trillion (£3tn) in revenue, have pledged to achieve zero net deforestation in supply chains by 2020.