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A new era in McDonald’s supply chain compliance: what suppliers need to know for 2025

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As a McDonald’s supplier, you’re likely aware of the recent changes to McDonald’s Supplier Code of Conduct and their move towards the new Sedex SMETA 7.0 audit protocol.

We spoke to Rachel Brinkenhoff, Senior Director of Client Services at LRQA about the changes, including requirements for all suppliers to meet the requirements of Sedex SMETA 7.0.

What does this update mean for McDonald’s suppliers?

From the start of 2025, McDonald’s will require all suppliers to undergo a SMETA 4-Pillar audit. The updated SMETA 7.0 audit methodology is designed to provide a more focused assessment, aiming to address harder-to-detect issues in supply chains and promote better transparency and sustainability practices.
McDonald’s suppliers will also be required to acknowledge the updated Supplier Code of Conduct. This update focuses on two significant changes:

  • A reduction in the total working hours limit to 60 hours per week (previously a maximum of 80 hours).
  • An increase in the minimum working age to 15 years (up from 14 years). If the local legal minimum age is higher, suppliers must comply with the stricter requirement.

The Supplier Code of Conduct also emphasises stricter standards on responsible recruitment, child labour remediation, prohibition of prison labour, Critical Health and Safety Incident Reporting Protocol (CHSIRP) and expanded emergency exit door requirements.

What changes will suppliers face?

  • Introduction of the SMETA 4-Pillar Audit: From January 2025, all McDonald’s suppliers are required to conduct a SMETA 4-Pillar audit. 
  • Adoption of a new digital platform: McDonald’s will be shifting from its current systems to a new digital platform that manages product specification, audit compliance and sustainability compliance, providing a more user-friendly and efficient experience.
  • Annual programme fees and membership: The existing McDonald’s annual programme fee will remain unchanged and each facility will also need to become a member of Sedex, with an annual membership fee. The cost of the SMETA 4-Pillar audit will be comparable to the current SWA audit. Specific details will be provided by LRQA during the transition.

Why the transition to SMETA 7.0?

McDonald’s decision to adopt the SMETA 4-Pillar protocol aligns with the growing emphasis on ethical sourcing and supply chain transparency. SMETA is one of the most widely used social audit protocols globally, covering crucial areas such as ethical labour standards, health and safety, environmental practices, and business ethics. This move allows for a standardised approach to audits, reduces the burden of multiple customer audits, and leverages industry collaboration to bring about systemic change.

LRQA, as an approved Sedex Affiliate Audit Company (AAC), is fully trained and ready to guide McDonald’s suppliers through these new SMETA 7.0 requirements, ensuring that you meet all the necessary standards while enhancing your ethical sourcing capabilities.

Supporting you in your journey

In the era of Assurance 4.0, meeting responsible sourcing demands is imperative to retain stakeholder trust and keep people safe. Conducting approximately 18,000 social and environmental audits per year and with over 20 years experience in responsible sourcing, LRQA is well positioned to support suppliers in the McDonald’s supply chain as they transition to SMETA 7.0. Our comprehensive knowledge of SMETA, highlighted by over 12 years as Sedex Associate Audit Group member, demonstrates our commitment and technical capability to help you successfully make the move to SMETA 7.0 audits. 

What’s next?

With the deadline approaching on January 1, 2025, now is the time to ensure your supply chain operations are aligned with McDonald’s updated standards and the SMETA 7.0 requirements. If you are part of the McDonald’s supply chain and have any questions or need assistance, contact us today. 

 

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