Bacardi strengthens social, environmental initiatives

REFLECTING its strong commitment to the society and environment, Bacardi Limited continues to enhance its environmental efficiencies, pursues a global sustainability initiative with industry-first goals, and boosts engagement with responsible suppliers. It has also made significant strides in responsible marketing programs.

Currently the world’s largest privately held spirits company, Bacardi has released its 2014 Corporate Responsibility (CR) report titled “Our Spirit is Clear,” which highlights the firm’s commitment in promoting responsible drinking behaviors while building a more sustainable future through the protection of natural resources used in crafting its premium products.

The family-owned company, which was founded nearly 153 years ago in Santiago de Cuba, has cut energy use by more than 25% and water use by nearly 55% since it started tracking its global impact on the environment in 2006. One of its key CR efforts in 2014 was the launch of its “Good Spirited” environmental platform. This outlines specific goals pertaining to sourcing, packaging, and operations by 2022 across more than 160 markets where Bacardi sells its brands, including 75 offices and 29 manufacturing and bottling facilities. The new Bacardi global program, “Good Spirited: Building a Sustainable Future,” reinforces the company’s leadership in environmental sustainability. It builds on current initiatives and efficiencies that reduce water and energy use, and greenhouse gas emissions. 

Bacardi’s CR platform emphasizes five key areas: marketplace; environment, health, and safety; responsible sourcing; people; and philanthropy and community involvement. 

For fiscal year 2014, the company’s significant achievements in these priority categories include providing responsible marketing training, including a course on the recently updated Global Marketing Principles that feature digital guidelines, to all new global marketing hires, and increasing the number of global direct suppliers and global point-of-sale suppliers linked to Bacardi on Sedex (R), the database for sharing ethical audit data, to 80% and 82%, respectively. The 4.6% improvement achieved in water efficiency resulted in a 46.5% rise in efficiency and a nearly 50% reduction in water use globally with a reduction of 2.9% leading to a 28.5% decrease in greenhouse gas emissions worldwide from 2006 benchmarks. 

To achieve accident-free workplaces, Bacardi launched the “B-Safe” Safety First seven-step behavior-based program in all 29 of its manufacturing sites. It also implemented the “Leadership Performance @ Bacardi” training program involving more than 1,000 leaders in order to introduce changes in the performance management process and turn out more effective leaders. The Company’s Women in Leadership (WIL) initiative achieved a 15% increase in women advancing to leadership roles within Bacardi, 5% of which involved women becoming senior leaders.  As part the company’s annual CR Month, employees participated in more than 100 different activities in 36 countries resulting in more than 7,900 volunteer hours. 

A signatory to the 2012 global voluntary Producers’ Commitments to Reduce Harmful Drinking, Bacardi implements the principles behind this initiative in its Bacardi CR model and overall company governance. It has achieved first-year success in several action areas: marketing-agency responsibility compliance, limited television exposure to underage viewers, and programs to combat underage drinking. 

According to Rick Wilson, senior vice president, External Affairs & Corporate Responsibility, who leads Bacardi CR initiatives globally, “Encouraging responsibility by underage drinkers not to drink – and discouraging inappropriate consumption of our products are key priorities for Bacardi in creating a safer and more sustainable business environment to market and sell our products. We are proud to report that 100% of our marketing agency contracts required adherence to our strict voluntary marketing guidelines and nearly 97% of all television ads placed across seven markets measured were in compliance with having a minimum 70% adult audience.”  

Bacardi chief executive officer Mike Dolan noted that responsible management of both social and environmental impacts will secure for Bacardi an even better and more sustainable business in the long term. 

“We lead by example, building consumer confidence and trust. Our consumers can enjoy our top-quality spirits brands knowing Bacardi cares a great deal about our environment, suppliers, employees and the communities where we work,” Mr. Dolan said. 

“Corporate responsibility has been at the foundation of Bacardi for nearly 153 years. With our multifaceted CR focus, it will continue to be a driving force that sets Bacardi apart from others in the spirits industry,” Wilson added.