Objective

100% of key raw materials sourced from sustainably certified suppliers*

100% paper and board used for shipping and labels sustainably certified*

100% of product packaging to be recyclable*

40% recycled content of product packaging materials*

• The above objectives are set for 2025 unless otherwise specified.
• * As compared to 2015 baseline (using earliest operations and supply chain data available)

Description

For Bacardi, environmental sustainability is good business – an approach that dates to the very beginning of the company when Bacardi founder Don Facundo Bacardí Massó started his business in 1862. Bacardi’s environmental sustainability commitment has grown over the past 155 years and in 2006, it began tracking its global impacts on the environment.

Bacardi recognises the environmental impact of producing their products and have implemented procedures to continually improve efficiency, wishing to be the most environmentally responsible global drinks company. The only way to attain such a goal is to continuously explore ambitious, new innovations that set Bacardi on the path toward positive outcomes. Global climate change and increasing water scarcity are two challenges with the potential to affect Bacardi directly and indirectly. Additionally, a growing and increasingly affluent global population is consuming more natural resources, producing more waste and pollution and increasing pressure on the environment. These pressures have the potential to disrupt global ecosystems and food security driving up the price of energy and commodities so crucial to Bacardi. Given these challenges, Bacardi recognised that it needs to be part of the solution across all stages of the value chain and that all stakeholders need to work together to tackle these issues.

Therefore, Bacardi launched Good Spirited in 2014. Good Spirit has two overarching chapters: Footprint and Sources. This page covers Sources for readability. Footprint can be found here.

2014 Good Spirited (First round of Good Spirited): Sources

Recognising the importance of continual environmental performance improvements across their operations, Bacardi set targets for responsible sourcing and global packaging using a 2006 baseline that undergo review each year. In addition to staying on track with immediate objectives, they also established longer-term goals, developed in response to stakeholder feedback.

Selected actions

• Responsible sourcing standards: Responsible Sourcing standards apply to all suppliers providing goods and/or services to Bacardi. In 2014, through the Responsible Sourcing programme Bacardi became a founding member of Bonsucro.
• Third-party Responsible Sourcing audit schedule: In fiscal 2014, Bacardi partnered with Sedex. The service enables Bacardi’s suppliers to drive and report the audit programme based on Ethical Trade Audit Protocol (SMETA).
• adm Partnership: In Fiscal 2014, Bacardi partnered with adm as their single partner for Global Point of Sale, and adm is their largest POS partner overall. In 2017, Bacardi worked to develop the Global POS Quality Manual with adm.

2018 Good Spirited (Second Round of Good Spirited): Sources

At the end of 2017 Bacardi calculated the results of the first round of Good Spirited. These learnings informed the next round of overall goals which encompasses all the company’s CR pillars and align with the United Nations Sustainable Development Goals (UN SDGs) they feel they could have the most impact on. The target set for 2025. When setting these goals, they looked to international standards and benchmarks to ensure the targets were ambitious and meaningful. The overarching area is return to source their materials responsibly.

Selected action: Conservation: In 2018, Aberfeldy launched the #SaveTheBees Barrels & Bees programme aimed at driving awareness of the plight of bees. Through education and working alongside bartenders and urban beekeepers from around the world, they promote the use of responsibly farmed local honey and encourage wildlife by planting for honeybees and other pollinators.

2020 Good Spirited (Updated Second Round): Good Sources

In 2020, the priorities were reinvigorated to ensure that Bacardi is making the most positive impact in the areas most material to their business. The goals are aligned with 10 responsible business principles of the United Nations Global Compact (UNGC), as well as the United Nations Sustainable Development Goals (SDGs), which are part of the 2030 Agenda for Sustainable Development. Of the 17 Goals, they identified those where they can make the greatest impact.

Selected actions

• Online Gift Packs: In December 2020, Bacardi introduced a new design for its online gift packs for Grey Goose, vodka and Martini Non-Alcoholic Aperitivo. Using 25% less packaging, the gift packs were made entirely from cardboard certified by the Forest Stewardship Council (FSC). Available exclusively through Amazon in the U.K., Germany, France and Italy, they could be shipped without any additional packaging, which meant even less wasteful cardboard.
• New bottles: In FY20, Noilly Prat launched an evolution of its bottle with 40% recycled content.
• Carton value-added packaging: In FY20, the move was made from polyethylene terephthalate plastic inserts to recycled alternatives in caps and inserts for Bacardi, Grey Goose, Bombay Sapphire and Dewar's brands. 
• Cutting plastic: In November 2021, the plastic in gift packs was cut by 50% by using designs to replace plastic inserts or trays with sustainable alternatives made from cardboard certified by the FSC. The range of gift packs also includes 100% plastic-free designs for many brands.
• Compostable Packaging: In December 2022, Bacardi launched a new biobased, 100% compostable packaging material in its Aberfeldy 12-Year-Old ‘Gold Bar’ gift pack. The material is made from potato starch and cellulose fibres, replaces plastic vacuum packaging.

Partners

adm: A partner for Global Point of Sale (POS).

Bonsucro: Multi-stakeholder global sustainability platform for sugarcane.

Sedex: a not-for-profit organisation dedicated to improving ethical business practices in global supply chains. It is the largest collaborative platform for sharing ethical, supply-chain data.

Results

Fiscal Year 2023 (1 April 2022 to 31 March 2023) (Latest report available as of July 2024) 

• Suppliers: 54% of key raw materials are sourced from sustainably certified suppliers.
• Shipping paper/board and labels: 97% of paper and board used for shipping and labels are sustainably certified. 
• Product packaging: 99% of primary packaging is recyclable.
• Packaging materials: 32% of product packaging is made from recycled content.

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At the end of 2017 Bacardi calculated the results of the first round of Good Spirited. 

Responsible Sourcing: To obtain 40% of the sugarcane-derived products used to make Bacardi rums from certified, sustainable sources by 2017 and 100% by 2022. The 40% target was surpassed as 86% are sourced from Bonsucro-certified suppliers.

Measurement & evaluation

Certifications

• White Table Wines, Prosecco DOC, Asti Must:100% Equalitas Certified.
• Wheat 100% SAI Certified.
• Malted Barley 100% SAI Certified.
• Bombay Sapphire Botanicals: Sourced from 100% sustainably certified suppliers.
• Sugarcane Derivates (Molasses and LCD) 100% Bonsucro Certified or ProTerra Certified.

Website

https://www.bacardilimited.com/esg/good-sourcing/

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