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EcoVadis webinar with coca cola amatil

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EcoVadis webinar with coca cola amatil

  1. 1. Document Classification: EcoVadis Public How Coca-Cola Amatil is fostering supplier CSR engagement
  2. 2. Document Classification: EcoVadis Public Presenters Michael Haynes Group Procurement Category Manager COCA-COLA AMATIL Sean Barr Senior Account Executive EcoVadis
  3. 3. Document Classification: EcoVadis Public 1. Highlights on the EcoVadis/HEC Barometer 2017– Sean Barr 2. Coca-cola Amatil’s Sustainable Procurement – Michael Haynes 3. Q&A session Agenda
  4. 4. Document Classification: EcoVadis Public Poll question How would you rate the maturity of your Sustainable Procurement program? • Have not started yet • Have started recently monitoring supplier CSR risk • Have increased coverage and set CSR targets for buyers • Have gone beyond tier 1, CSR is part of supplier scorecard
  5. 5. Document Classification: EcoVadis Public 5 Highlights from 2017 EcoVadis / HEC Barometer
  6. 6. Document Classification: EcoVadis Public When comparing to our 2013 study, this year we see a convergence between the US and Europe on the same top three drivers and priorities for SP programs: Brand Reputation, Risk Mitigation, and Compliance. Sustainable Procurement Drivers
  7. 7. Document Classification: EcoVadis Public “ Multi-tier visibility and traceability to the origins of our supply chains and transparent reporting on this to our stakeholders is rapidly becoming a requirement for us”. Top 5 Pharmaceutical Company Global Supply Chain Coverage Expands Drastically
  8. 8. Document Classification: EcoVadis Public “ I do believe in the correlation between sustainability and innovation. When a supplier demonstrates their commitment to CSR, they are demonstrating their ability to look forward - that they have a long-term vision. I think this is fundamental to the capacity for innovation.” Top 5 Beverages Company SP Leaders - New and Enhanced Benefits
  9. 9. Document Classification: EcoVadis Public “ I believe that supplier engagement and awareness campaigns can only be successful if all parts of the business that interact with suppliers are aligned, otherwise you are destined to send mixed messages that will put your level of commitment in question.” - Top 10 Medical Equipment Company Supplier perceptions and engagement
  10. 10. Document Classification: EcoVadis Public Poll question How do you engage your supply chain to drive improvements on sustainability issues? • Compliance and contract terms • On-site audits and/or sustainability assessments • Set performance targets with recognition and/or incentives • Collaborate on improvement plans and/or education on CSR
  11. 11. ccamatil.com SUSTAINABLE PROCUREMENT DRIVING BUSINESS GROWTH BY FOSTERING BETTER, LONGER-LASTING SUPPLIER RELATIONSHIPS October 24th Michael Haynes Senior Group Procurement Category Manager & Sustainable Procurement
  12. 12. ccamatil.com COCA-COLA AMATIL: OUR COMPANY We are proud of the unrivaled portfolio of brands we locally manufacture, package, sell and distribute to our customers and consumers every day. 12
  13. 13. ccamatil.com PROCUREMENT @ AMATIL IS FOCUSED ON CREATING VALUE FOR AMATIL TODAY AND TOMORROW 13 PROTECT OPTIMISE GROW Minimise CCA’s risk relating to 3rd party spend and supply Drive a lean and agile (total) cost structure leveraging CCA scale Unlock growth through collaboration with suppliers and customers LOWER RISK COST OUT VALUE IN+ + ADVISE
  14. 14. ccamatil.com PROCUREMENT CHALLENGES: COMPANY TRANSFORMATION Growing stakeholder awareness and expectations that big companies help improve the CSR performance of their global supply chains. Here are some facts:  Majority of global FMCG companies have a supplier code of practice or responsible/ethical sourcing policy in place.  More than 50% of Top 50 ASX companies have a supplier code of practice or related policy in place. 14
  15. 15. ccamatil.com HOW DID WE START OUR JOURNEY 15 Key objectives:  Measure CSR performance of selected suppliers (Manage Risk)  Pressure test process for audit and governance of proposed guidelines (Improve Compliance)  Confirm scope for full roll-out Measuring Success:  >65%* supplier participation in CSR assessments  >65% CSR analysis and scoring completed according to timelines Develop Responsible Sourcing Guidelines Appoint 3rd party accreditatio n Provider Review and adjust framework Test auditing and governance approach 1 2 3 4 PILOT OVERVIEW Amatil’s Responsible Sourcing Framework and Pilot Program Overview. Our Approach to Managing Supply Chain Risk and Improving Compliance.
  16. 16. ccamatil.com THE PROCESS OF GAINING INTERNAL STAKEHOLDER BUY-IN 16  Started with the end user in mind - Procurement team and Category Managers who will own the program.  Direct one-to-one engagement with Business Unit Executives and Group Leadership Team members.  Presentation to the Amatil Board and GLT – Approved with full endorsement to proceed.  Multiple trainings on our responsible sourcing program and the supplier engagement plan prior to the launch.  Communication toolkit for supplier engagement A rigorous internal communication and engagement plan was developed in order to gain support and incorporate feedback prior the program launch.
  17. 17. ccamatil.com HOW WE ENGAGED SUPPLIERS 17  Letter from CPO and brochure to suppliers  Supplier Webinar + Introduction to EcoVadis: http://intro.supplier.ecovadis.com/  CSR compliance measure in the Supplier Risk Audit process  Contract and tenders: Amatil Responsible Sourcing Guidelines  Key sustainability measure for the balanced scorecard used in the Supplier Relationship Management (SRM) program  EcoVadis self assessment to benchmark our practices
  18. 18. ccamatil.com CASE STUDY: DYNAPACK ASIA  With our initial assessment score of 26  Current EcoVadis score is 50 (Silver Level) of a possible 100  Decisive action from the company’s leadership  Cascade action within the company sites  Coca-Cola Amatil as a key customer continuously worked in partnership with us Our next step is to achieve EcoVadis Gold Level by 2018 18 Dynapack Asia supplies bottle closures to Coca-Cola Amatil Indonesia and undertook the EcoVadis survey for the first time in 2016, completing it twice in one year.
  19. 19. ccamatil.com HOW DO WE WORK WITH THE RESULTS 19
  20. 20. ccamatil.com SUSTAINABLE PROCUREMENT MOVING FORWARD 20 LEAD (PROTECT) EXECUTE (OPTIMISE)Strategic Themes Big Moves (Where to win) Big Initiatives (How to win) Long term (1-3 years) - Develop system to monitor signatories to our Guidelines. - Implement new technology to support monitoring of suppliers compliance to our Guidelines. - Deliver training on the importance of Responsible Sourcing in our supply chain. Short-term (< 1 year) - Update Guidelines to include a statement on our approach to indigenous suppliers. - Update Toolkit (supplier communications, sales RFPs, tenders and contracts) to enable delivery of short and long term objectives. - Enhance governance by identifying strategic suppliers as signatories to our Guidelines. - Up weight risk assessment to include sanctions checking of supplier base. Long term (1-3 years) - Set targets for suppliers to improve their CSR assessment score. - Develop long term indigenous procurement strategy to deliver Amatil’s Reconciliation Action Plan objectives. - Embed Social Procurement in all applicable category strategies across the businesses. Short-term (< 1 year) - Expand suppliers participating in the CSR assessment. - Become a Supply Nation member and develop action plans to support achievement of the first stage of Amatil’s Reconciliation Action Plan. - Pilot a Social Procurement program to generate benefits beyond the products and services required. Responsible Sourcing Guidelines Governance People Capability Social Procurement Indigenous Supply Supplier CSR Assessment PARTNER (GROW) Partner for Growth Net Positive Benefit Competitive Advantage Long term (1-3 years) - Measure and communicate impact/benefits and set long term targets for Responsible Sourcing. - Leverage competitive advantage from our Responsible Sourcing and Social Procurement practices. Short-term (< 1 year) - Leverage Partner for Growth program as the platform for delivering supplier initiatives for social and environment sustainability. - Benchmark and identify best practice for measuring Net Positive Benefit from Responsible Sourcing & Social Procurement. - Identify strategic levers of Responsible Sourcing & Social Procurement to deliver a competitive advantage. Our Vision In Our Community We Make a Distinctive and Positive Contribution to the World we Live in
  21. 21. ccamatil.com Bedford • Provided of Co-Packing services Endeavour Foundation • Provider of Co-Packing & recycling services. House with No Steps • Provider of recycling services. SOCIAL PROCUREMENT Source: Zycus Spend report YTD Q 2017 Amatil Australia Annual spend with social enterprises is $942,322 which represents 0.05% of supplier spend Bedford $547,008 Endeavor $392,614 House with No Steps $2,700 21 By spending with a social enterprise Amatil helps deliver social and economic outcomes that support inclusive employment opportunities for disadvantaged groups in Australia
  22. 22. ccamatil.com Thank you! For more information: Sean Barr Senior Account Executive sbarr@ecovadis.com Michael Haynes Group Procurement Category Manager & Sustainable Procurement michael.haynes@ccamatil.com Q&A SESSION 23
  23. 23. ccamatil.com

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