Sustainability Report 2010.pdf - Reckitt Benckiser

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Contents Introduction Environment Marketplace Workplace Community Managing & Reporting Managing our supply chain Our global manufacturing standard mandates minimum requirements for employment conditions, labour standards, health, safety and environmental management for both RB and our suppliers. Our worldwide supply chain includes thousands of businesses providing us with everything from raw materials and packaging, through logistics and warehousing, to office supplies. Some of our suppliers are large, multinational companies with substantial business and ethical conduct programmes of their own. Smaller, local companies – for example in our Developing Markets area – may not have such formal conduct programmes in place, but they can still be excellent suppliers. Supply chain programmes Our responsible and ethical supply chain programmes focus on: • manufacturers who make products on our behalf, particularly in our Developing Markets area. • suppliers of raw and packaging materials and suppliers of warehousing and transport services in our Developing Markets area. We have continued to assess suppliers (and ourselves) against our global manufacturing standard (GMS), while also working with other international companies to create a common approach to supplier assessment under the AIM-PROGRESS initiative. This global programme is developing a collaborative approach to supply chain assessment in our industry, reducing unnecessary duplication and complexity. Our Global Manufacturing Standard (GMS) GMS is the basis for self-certification and audit against international standards for human rights, working conditions, health and safety and environmental protection. It is a standard part of our contracts with suppliers and covers seven specific, fundamental principles: • No child labour – limitation of work by young workers. • No forced labour. • A safe and healthy working environment. • Freedom of association. • No discrimination – equal opportunities and rights. • Reasonable terms and conditions of employment. • Protection of the environment. The GMS defines the minimum requirements that must be met by all facilities that manufacture, assemble or distribute products on behalf of Reckitt Benckiser Group plc companies, including both our own and our third party suppliers’ facilities. Progress so far To date we have not identified any critical non-compliance issues such as under-age working. We have identified non-compliance related to health and safety standards and have taken action to address the issues we found. We are working with these suppliers to continually monitor the situation at those sites. We ensure that suppliers: • are frequently visited by senior and middle managers in our R&D and Supply functions. They provide additional ‘eyes and ears’ and report potential issues they come across. • are required to comply with our GMS through the terms of our contract. • may be subject to separate environmental and health and safety (EHS) inspections and audits where we believe these are necessary. We also encourage our suppliers to participate in the supply chain leadership collaboration, an initiative of the carbon disclosure project (CDP). This requires measuring and managing their greenhouse gas emissions, and ultimately reducing the total carbon footprint of their emissions. A copy of the GMS is available on our corporate website (www.rb.com). Our internal GMS implementation guidelines are available on request. RB Sustainability Report 2010 17
Contents Introduction Environment Marketplace Workplace Community Managing & Reporting Transport and Logistics We use transport contractors to move our products by road, sea, rail and sometimes air. As we do not have management control of these companies we do not have direct control over their greenhouse gas emissions but we have begun to collect data from them and work with them to reduce emissions. In 2010 * our contractors: • transported approximately 5,500 million tonne-kilometres globally, contributing 0.067 tonnes of CO 2 equivalent (CO 2 e) emissions per 1000 consumer units (CU’s) (production), equal to 389,000 tonnes in total. • 71% of the global tonne-kilometres was by road, contributing 0.0608 tonnes of CO 2 e per 1000 CU’s or 351,000 tonnes in total. This represents 90% of our global CO 2 e emissions from transport and a 2% increase against 2009. • 18% of the total tonne-kilometres was transported by boat, contributing 0.0021 tonnes of CO 2 e per 1000CU’s, 12,500 tonnes in total. This is 2% less than 2009. • 11% of the global tonne-kilometres was by rail, contributing 0.0033 tonnes of CO 2 e per 1000 CU’s, and 19,000 tonnes in total. This is a 96% increase on 2009. • 0.2% of the total, or 10 million tonnekilometres, was transported by air freight. This contributed 2% of our global CO 2 e emissions or 6,500 tonnes in total and is 55% lower than 2009. p19 Transport and Logistic greenhouse gas emissions Metric Tonnes per 000’ CUs Transport & logistics 80% 60% 40% 20% 0 71% 18% 11% 0.2% Road Sea Rail Air To reduce the environmental impact (and cost) of product transport, we are working with our transport contractors to: • combine our truck journeys with those of other companies, so that a truck is carrying products on both the outward and return legs of it’s journey, reducing ‘empty’ running. • combine ‘less than a truck load’ (LTL) shipments. • move freight off roads to rail, inland water ways and inland sea shipping. Sustainable palm oil Palm oil is a global commodity and widely used, particularly in the food industry. However, palm oil is also subject to concerns about the environmental and social sustainability of its production, and to increasing demand. Overall RB products use less than 0.2% of annual global palm oil production. Soap noodles – which contain a large amount of palm oil – are used in the production of bar soaps in our Developing Markets area, where it plays an important role in personal hygiene. RB is a member of the Roundtable on Sustainable Palm Oil (RSPO), which was established in 2003 to promote the growth and use of sustainable palm oil through co-operation within the supply chain. We fully support a moratorium on any further deforestation associated with the cultivation of palm oil. In addition, we are working with our suppliers and others in the industry to seek the world’s major palm oil supplies being drawn from certified, sustainable sources by 2015. We are working with our suppliers to ensure that the RSPO’s principles and criteria are implemented within our supply chain and that the current certification programme proceeds rapidly: www.rspo.org * We report on the transport of products to trade customers from our own manufacturing facilities and third-party manufacturers. We do not currently report employee travel and the transport of raw materials. Due to the complexity of global logistics we have to make a number of assumptions when obtaining and collecting global transport data, and have not been able to compare historical data. We have significantly improved the data and data collection process this year and are using 2010 as the baseline for future targets. RB Sustainability Report 2010 18
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