The Art Of Making A Big Mac Go Green
by Brian Womack
(AP Photo)
Last year, Greenpeace activists climbed into rafts in the Amazon rain forest for a fact-finding tour about deforestation.That may not be surprising -- except that the tour included four officials from one of America's biggest and most visible corporations: McDonald's, which Greenpeace had earlier criticized for its potential role in the deforestation.
The concern had been that McDonald's suppliers were buying from soya farmers who Greenpeace says were harming the rain forest.
But McDonald's and Greenpeace worked together to find a solution about its suppliers. The previous year McDonald's had come out against sourcing soya from the Amazon and also helped push a two-year moratorium for suppliers as well, McDonald's officials say.
"Where it makes sense we are going to use our size and influence to make a difference," said Bob Langert, McDonald's vice president for corporate social responsibility, who was on the trip and retold the story.
Although McDonald's isn't new to the idea of green, it's another example of how corporate America's putting more time, more focus and more resources into the environment. Companies such as carmaker General Motors (NYSE:GM - News), conglomerate General Electric and oil company BP have even made it a recurring theme in ad campaigns.
"Green" Buoys Sales
It's more than just corporate responsibility, analysts say. More and more, consumers want to know the products they buy are made, distributed and sold with the environment in mind. While companies need to be careful not to overstate their green efforts, going green can buoy sales, analysts say. At the same time, cutting waste or packaging can cut costs.
"American companies are finally getting this," said Anthony Johndrow, a consultant with the Reputation Institute. "There's a lot of money to be made in green."
A new study by IBM says that 18% of chief executive officers view environmental issues or "green" as a concern -- double the percentage from 2004. CEOs in Asia and Europe are leading the charge, though U.S.-based CEOs are increasing their focus as well, the IBM study says.
It's old hat for many corporations that have seen green's upside.
Take Toyota Motor, which saw sales of its fuel-efficient hybrids in the U.S. jump 42% in April even as overall vehicle sales slipped 4.5%. Consumer-packaged goods maker General Mills has reduced Hamburger Helper's package size by 20% with denser pasta shapes, saving the company in packaging and shipping costs.
McDonald's Going Solar?
McDonald's has efforts that go far beyond the Amazon. The company, which also is using slimmer packaging, has been improving its restaurants and cutting costs with more efficient lighting, energy-saving equipment and white (reflective) roofs.
It's building out "green laboratories" restaurants this year in Germany, France, Chicago and Japan with features that could include reusing rain water for landscaping or adding more windows for natural lighting. There's also talk about some restaurants using solar power, Langert adds.
Langert points out a company as large as McDonald's needs to ensure its supplies will be around for years to come. McDonald's has worked with suppliers to ensure its fish is from companies concerned about sustainability.
In Europe, it's even reusing some of its cooking oils for fuel in its trucks.
"Certainly environmental sustainability is a very good thing to do," said Langert. "But it's also the right thing to do with business. All these little things add up, and end up making a big impact."
He says the billions served by McDonald's also want to know about the restaurant's efforts. He points out one of the most visited parts of the McDonald's Web site is the section on the company's environmental efforts.
"We know that customers care about these issues," he said.
And how. BBMG, a marketing firm, says 90% of consumers have a favorable impression of the term "environmentally-friendly."
"There is something going on," said Raphael Bemporad, co-founder of BBMG. "More and more Americans are starting to consider both practical and environmental benefits when they make purchasing decisions."
In a survey released this year by marketing firm Cone LLC, nearly 6 in 10 American said they are consuming less or, at least, buying products that are environmentally friendly.
Yet not every company should take the idea of green and launch a national ad campaign, Johndrow says. He says the marketing should line up with what the customers want in a given industry. For example, bank customers are more worried about the security of their money than whether their bank is using solar panels.
"It boggles the mind why banks are spending millions on going green," he said. "Don't just jump on the bandwagon."
Bemporad says customers are more concerned about the issue when it's closer to their personal well-being, such as health and beauty products. Still, he says more people are looking at environmental credentials across many sectors, including financial institutions.
No matter the industry, companies must ensure they back up their green talk with the walk, he says.
"There is more skepticism than ever," Bemporad said. "They are going to have to not just make green claims, they're going to have to take deeper green action across every decision point 14 their business."
Mike Lawrence, executive vice president of Cone, says companies are going to have to be increasingly careful about what kind of assertions they make to the public -- or risk being tagged as "green-washing." He says Americans aren't as savvy as they think they are about environmental issues -- but that will eventually change.
"It demands a little bit of context and a little bit of humility,"he said.
He says it's fine for companies to market their environmental efforts, but not overstate them. For example, a company shouldn't say it's saving the world if it's merely adding a few solar panels to its rooftops.
"You've got to make the thing credible," he said.
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