great beer, great responsibility - MillerCoors

S U S T A I N A B L E S U P P L Y C H A I NRESPONSIBLE SOURCING“We are delighted to partner with MillerCoors to reduce our environmental impact.We are working to reduce water usage in our supply chain and collaborating onnew, long-term initiatives to reduce fuel and energy consumption.”MillerCoors constantlyevaluates its supplier networkto gain an understandingof social and environmentalrisks within its supply chain. Pat Bowe, Corporate Vice President, CargillIn 2009, we embedded ourglobal Responsible SourcingPrinciples in all procurement contracts,providing guidance across eight areas:business conduct; working conditions;employment; child labor; wages; diversity;freedom of association; and environment.We researched and validated a self-audittool, putting the pilot methodologyin place for our top-tier suppliers toevaluate their performance. This resource,called SEDEX, sets benchmarks on aglobal International Labour OrganizationRecognizing the importance of the supply chain forbusinesses worldwide, MillerCoors became a FounderLevel Member of The Sustainability Consortium to helpdevelop global sustainable development measurementand reporting standards in collaboration withsuppliers, retailers, non-governmental organizationsand government officials. The standards will consistentlyquantify sustainable attributes of a manufactured productacross its entire life cycle.MillerCoors also hosted a Sustainability Summit with its procurement team inGolden and Milwaukee. During the Summit, we completed our goal of conductingsustainability training for all procurement staff.standard scale to assess internalpractices as well as our suppliers’ toidentify risks and opportunities.Supplier DiversityIn 2009, MillerCoors spend with diverse suppliers was 7.4 percent of the company’scollective Impacttotal spend. We exceeded our supplier diversity program target by 14 percent,working with a total of 579 minority- and women-owned businesses.MillerCoors has more than 10,000suppliers, and we work closelyWe collaborate with industry peers to drive businessSupplierwith the Top 100, who represent 80growth for diverse suppliers. MillerCoors partners with theDiversitypercent of our total procurementNational Black Economic Development Coalition and the(MillerCoors spendspend. Many of our suppliers shareHispanic Association on Corporate Responsibility onpercentage with diverseour commitment to embeddingsustainability across operations.• Foodliner, a supplier, is expanding itsfleet with units powered by compressednatural gas for an oxygen-free exhaust.• MillerCoors partnered with two syrupsuppliers, Cargill and Corn ProductsInternational, to increase truck shipmentefficiencies by increasing load weightssupplier diversity initiatives. We are also actively involvedin the Conference Board’s Supplier Diversity LeadershipCouncil and have a seat on the Board of Directors for theNational Minority Supplier Development Council.In 2009, MillerCoors continued to foster relationshipswith second tier suppliers, hosting a networking event forthe Women’s Business Enterprise National Council. Onesupplier, CH2MHill, recognized the business value of theprogram and introduced it in its own community practices.suppliers)107.552.5and reducing trailer tare weights.2015 goalSpendmore than$2.5 billioncumulatively withdiverse suppliers6 percent7.4 percentlooking back.In 2009, we made progress with our Top 100 suppliers, sharing ourResponsible Sourcing Principles and putting the pilot methodology in placefor suppliers to perform self-audits against the Principles. We surpassed ouroverall supplier diversity spend goal, increasing to 7.4 percent of total spend.We also exceeded our spend goal by nearly 25 percent with Hispanic suppliers,but did not meet our target spend goal with African-American suppliers.20082009looking ahead.Establish pipeline of joint projects between MillerCoors and suppliersFocus on projects impacting water, packaging, waste and energy•Focus on suppliers in agriculture, promotional items and packagingLeverage The Sustainability Consortium membership to participate indevelopment of sustainability measurement and reporting standards19