Responsible Sourcing at MillerCoors

Responsible Sourcing principles

Responsible Sourcing

At MillerCoors, we are constantly evaluating the sustainable practices in our supplier networks. Our goals are to promote sustainability and to gain a better understanding of our social and environmental risks, from the barley field to the delivery truck. As a critical step in meeting our goals, we are working on improving transparency throughout our supply chain.

Top Suppliers

Historically, our top 100 suppliers by spend represented 80 percent of our overall procurement activity each year. Annually, we involve our top suppliers regarding their consistency with our responsible sourcing principles. Among other initiatives, we monitor their spending with small and diverse suppliers and look for opportunities to team up on environmental projects and programs. In 2011, we expanded our assessment to include our top 150 suppliers, and we are now re-evaluating our risk mitigation plans to account for this larger supplier group.

Procurement Value Tracker

On an annual basis, we track our procurement using a tool that monitors our cost savings, supplier diversity and sustainability projects. During the recent SABMiller plc fiscal year (April 1, 2011, to March 31, 2012), we had 79 active sustainability projects with suppliers.

Supplier Ethical Data Exchange

One of the major opportunities we see within our supply chain is to create a more robust and standardized environment for companies to share information about their sustainability practices. Just as we report on our goals and progress so that others can evaluate our sustainability, we benefit from similar data about the sustainability of our suppliers.

To help us select suppliers that are aligned with our values and reward their sustainability efforts with our purchasing power, we asked a number of our top suppliers to join the nonprofit Supplier Ethical Data Exchange (Sedex) in 2011. Sedex provides a standardized format, based on internationally recognized protocols, for companies to voluntarily report on their sustainability practices. Sedex houses these reports on its database, and a supplier gives permission to customers and other companies to view the reports. Our short-term goal is to collect data on our highest risk priority areas of agriculture, packaging and promotional spend. In 2011, 11 suppliers with a total of 31 plants joined Sedex and are in the process of completing reports.

Our long-term goals are to understand the effects of our procurement strategy on responsible sourcing, use the information provided by our suppliers to assess specific risks in our supply chain and implement independent auditing protocols. Ultimately, the opportunity to evaluate our top suppliers’ reports in a standardized format will improve supply chain practices in our industry. Our suppliers will also be able to reference a single report when responding to requests for sustainability information from multiple companies.

Learn more about our strategies to increase transparency at MillerCoors.

Supplier Code of Conduct

MillerCoors is committed to providing products and services of superb quality and value to our customers. It is vital for our suppliers to understand that MillerCoors expects the highest standard of conduct, and we will always strive to treat our suppliers ethically, honestly and fairly. We have created the MillerCoors Supplier Code of Conduct, establishing the fundamental principles and policies to which all of our suppliers must adhere. The Code is embedded into new MillerCoors supplier contracts with the requirement that suppliers must follow its guidance.

Responsible Sourcing Principles

We adopted our responsible sourcing principles in 2008, and we continue to use them to ensure that basic human rights are acknowledged and respected by both our own procurement initiatives and the initiatives of our suppliers. Our responsible sourcing principles are contained within our MillerCoors Business Code of Conduct and Supplier Code of Conduct. These principles provide guidance regarding business conduct, working conditions, forced employment, child labor, wages, diversity, freedom of association and environmental issues.