Sustainability Leadership

Bob Langert

McDonald's Corporation
Vice President, Corporate Responsibility

 

Interviewed by Peter Nicholson, Foresight Design Initiative

"There is always something new and innovative to do in this space," says Bob Langert, referring to his oversight of McDonald's sustainability efforts. It's the beginning of another provocative conversation, one of many we've had over the past several years as we've discussed various sustainable business topics.

FDI: Do the two new environmental positions you recently posted for the McDonald's USA business reflect an expansion of effort or new strategy for McDonald's?

BL: The two new positions represent both. As you know, we're not just starting the sustainability work at McDonald's, although, as people have pointed out, we need to perhaps communicate more about what we do. The new roles represent an elevation of these issues within the company. We're in the process of further integrating them into our standard business operations. It's about environmental actions, innovations and connecting with the evolving values of consumers. All of this requires more expert and dedicated staff to do that. As I mentioned, the communications position, in particular, reflects an answer to our challenge of internally and externally sharing more about these efforts.

FDI: Are there ways you would like to see sustainability strategies more fully integrated across the corporation?

BL: Definitely. With operations in 119 countries and with 1.7 million employees, the challenge is a big one. Many of our people just don't think of these issues frequently. Understandably so. They're very busy! Sustainability, however, does need to be fully integrated into what we do. Our challenge right now is to step up our game. We need to raise awareness and understanding about what sustainability means to McDonald's; how it is core to our business and how we connect to society, and how it is good for our bottom line, brand trust, and the communities in which we operate. My experience has been that as our people better understand these principles, they'll be naturally inclined to act upon them. That said, we're not going to prescribe this via a manual. Rather, as with other aspects of McDonald's, we believe in "freedom within a framework." We need to present the values and strategies, and then let staff members apply them to their own jobs and in their own contexts.

FDI: What professional qualities do you feel it is important for those working in a sustainability-related position to possess?

BL: Passion, persistence, business savvy, combined with sustainability expertise. The key, however, is to balance all these qualities at one time. It's difficult to find people who embody all of these traits. When I interview job candidates, I look for some evidence that they're genuinely comfortable in both worlds. It's one thing to be passionate about the environment; it's another to spend your personal time in a way that demonstrates that. Also, you need to be smart about how you're going to advocate for change. If you're perceived as a die-hard or treehugger, many people with whom you'll need to interact won't be able to relate to you. The key is knowing how to translate a passion for change into a business context. Patience doesn't mean slow! To be a change agent, you have to possess and be able to use different tools in your arsenal.

FDI: What specific advances have been made in reducing the McDonald's restaurant footprint, and how have franchisee relationships played a role in making that progress?

BL: McDonald's has three primary impact areas upon which we focus: sourcing, energy, and waste/packaging. We have started to accumulate a track record across all of them. To date, our strength has been greatest in supply chain issues. We need to continue to establish goals and set measures—and be transparent about our progress. Like Walmart, we know our footprint in this area is large.

With regard to restaurant operations, energy is the biggest issue. I wish more knew it. Most stakeholders don't see our improvements; they're largely invisible. But we've made some definite efficiency advancements. Packaging is a difficult issue. Again, progress has definitely been made and was, in fact, one of the first challenges I worked on. But the current trend is toward more affordable and flexible containers, and that often goes against our sustainability ambitions. It's a challenge to keep it within reason.

It's worth noting that our owner-operators are the crux of our system. They run 90% of our restaurants (in the U.S.) and are key. Our best innovations have often come from owner-operators. The Big Mac, Egg McMuffin and Filet-O-Fish were developed this way! We can't proclaim a McDonald's corporate sustainability program from on high and impose it on them. It has to make sense for them. If we can work with our network of owner-operates to come up with strategies, they will go somewhere. When it launches, they're already invested. We've just started to tap this system with regard to our sustainability efforts. Owner-operators are testing LEED certified buildings, new recycling initiatives, renewable energy systems, among others programs. We're at the tip of the iceberg. While this particular pathway may take longer, at the end of the day, I think it's really more sustainable than a more top-down model.

FDI: In a recent blog entry of yours, you described one of the benefits of CSR marketing to be "the creation of a virtuous cycle." Can you expand on this idea?

BL: The "virtuous cycle" involves many components, all of which need to be active and engaged. The elements are ongoing on a daily basis. The circle doesn't just stop with plans, strategies and actions. We need to get staff knowledgeable and incorporating these issues. Customers need to be engaged and provide positive feedback. Most people don't make decisions based purely on the environment. But I also think the world is changing. People are seeing that and are altering their habits. We need to tap into that, and use it to drive a sustained system of change.

FDI: After seeing the media splash that was made by Walmart with its shift in procurement policies, were you surprised that a similar reaction was not seen as a result of the McDonald's Sustainable Land Management Commitment, or was that a strategic decision?

BL: We didn't lay low. We put the word out and engaged in conversation with the media and stakeholders, and received some good reactions. The response was appropriate; we are just starting this journey. I think there will be bigger news over time. We're at the beginning stages, in general, of this sustainability journey. We need to establish more goals and targets and achieve more milestones. I'm looking forward to those larger stories when we get there.

Bob Langert began working at McDonald's in logistics in 1983. Asked to take on a "temporary" assignment to help with removing chlorofluorocarbons from the company's packaging in the late 1980s, he has worked in corporate responsibility ever since. Bob recently joined the Steering Committee for Foresight's NEXT program for emerging corporate leaders.

Foresight Intern Will Galloway contributed research, writing, and insight to the questions posed in this interview.