Bacardi Limited charts bold course in building a sustainable future
Family-owned spirits company unveils ambitious environmental initiative called “Good Spirited” with specific goals in sourcing, packaging and operations by 2022. Building on current programs and efficiencies that reduce water and energy use and greenhouse gas emissions, the new Bacardi Limited global platform, Good Spirited: Building a Sustainable Future, reinforces the Company’s leadership in corporate social responsibility (CSR).
Bacardi Limited Charts Bold Course in Building a Sustainable Future
World’s largest privately held spirits company unveils ambitious environmental initiative called “Good Spirited” with specific goals in sourcing, packaging and operations by 2022
Hamilton, Bermuda, February 4, 2014—Everywhere Bacardi Limited does business, sustainability is something that’s not just encouraged – it’s expected. Today, on the 152nd anniversary of its founding, family-owned Bacardi rolls out an ambitious sustainability campaign globally. Good Spirited: Building a Sustainable Future launches across the more than 150 markets where Bacardi sells its brands, including more than 75 offices and 27 manufacturing and bottling facilities, touching each employee.
“Protecting the natural resources we use to create our brands, at every step along the value chain, is central to our corporate responsibility,” says Ed Shirley, President and CEO of Bacardi Limited, the world’s largest privately held spirits company. “We’ve always set the bar high. Now, we’re taking our solid, sustainable foundation to the next level.”
Bacardi Limited Pioneers Groundbreaking “BEST” Method
Innovative System Combines Science and Accounting to Track Sustainability Progress
Bacardi Limited today announced that it has pioneered a new auditing method that accurately measures performance and progress against key environmental sustainability objectives. Called BEST – Bacardi Environmental Sustainability Tracking – the new system represents an innovative best practice in assessing a variety of metrics typically included in sustainability initiatives.
Bacardi Limited, the world's largest privately held spirits company, created this innovative system using general accounting principles. The Company then built upon standard metrics to include non-financial performance measurements in water use, energy use and greenhouse gas emissions from all of its manufacturing operations. The results provide an accurate assessment of not simply the cost of goods, but also the degree of efficiency in the Company’s use of resources.
Using the BEST method, Bacardi Limited is able to gain a precise comparison of its performance against sustainability initiatives over time. The Company calculates very specific data from a set baseline to understand just how much water and energy it would have used in prior years if those years had had the current-year mix of goods and services. All reporting compares today’s results to specific base years and provides data on a monthly basis. Other companies, using standard methodology, apply average cost of resource use that shows only the difference between the current and base year mix of goods and services; this method does not fully capture efficiencies in the use of resources.
BEST provides Bacardi Limited with a more accurate picture of performance, which, in turn, enables more accurate budget forecasting. The Company’s unique and innovative system was featured in Strategic Finance magazine and has been widely praised by industry leaders.
“The methodology advances Bacardi's sustainability efforts through an application of the principles of activity based flexible budgeting to produce indices of improvements (efficiency metrics) for sustainability KPIs based in physical quantities rather than monetary amounts,” write Poole College of Management at North Carolina State University professors Jon Bartley, Ph.D.; Frank Buckless, Ph.D.; Y.S. Al Chen, Ph.D.; D. Scott Showalter, CPA; and Gilroy Zuckerman, Ph.D. in Strategic Finance magazine. “These new metrics have transformed the way Bacardi measures progress in meeting its key sustainability objectives, and they represent an innovative best practice for management control and for external reporting.”
Bacardi continues to focus on water reduction with a goal to cut its global use by 55% by 2022. The Company recycles water used to clean BACARDÍ rum barrels.
Bacardi crafts sustainability into its brand packaging and point-of-sale materials. In North America, 100% of BACARDÍ rum cardboard boxes are sustainably certified.
We appreciate your interest in the Bacardi Limited Good Spirited: Building a Sustainable Future initiative. To learn more about what Bacardi and its iconic brands are doing to achieve the goal of returning to the environment at least as much as we take away through through responsible sourcing programs, packaging advancements and operational efficiencies, please download the files below.