A welcome from our Chairman
For the last 155 years, our values of Trust, Caring, Passion, and Excellence have guided how we have done business every day, the premium products we make, and how we respond to our consumers, employees, and communities. Our commitment to being a responsible corporate citizen extends into every aspect of our business and we are so proud that for the fifth consecutive year Bacardi Limited has been named among the most reputable companies in the world.
According to the annual Global RepTrak® 100 list released by Reputation Institute and published in Forbes, we are ranked at #84, moving up 8 spots from last year. On behalf of our 5,600 employees, I am pleased to share our Interim 2017 Corporate Responsibility (CR) Report.
- In FY17 we commissioned independently conducted stakeholder research on our Corporate Responsibility program and our priority focus areas. Although there are some changes in the relative priority of issues, there was a consensus among stakeholders that all material issues remained important and should continue to be actively managed and reported upon. Findings from the research were incorporated in the updated materiality assessment, included in this report.
- FY17 represents the fourth year of the Beer, Wine and Spirits Producers’ Commitments to Reduce Harmful Drinking. For consecutive years, we achieved 100-percent compliance with marketing agency contracts and ensured at least 70% (more in many countries) of our measured advertising had an audience above the legal drinking age. Through active engagement in local level organizations, Bacardi-supported underage drinking prevention programs reached over a million underage individuals and 1.5 million influencers. In addition, 38 drunk driving programs were carried out across 19 countries. We know we have more work to do and remain committed to the five principles and reducing the harmful use of alcohol.
- Regarding our bold Good Spirited environmental sustainability initiative, we reached our goal early of reducing our greenhouse gas emission intensity by 50%, as compared to our baseline in FY06! Our work here won’t stop as we look to our overall value chain to continue the reduction journey. In addition, we achieved Zero Waste to Landfill status at four additional manufacturing facilities as we move towards our goal of every facility by 2022.
- All our sugarcane-derived product suppliers for BACARDÍ® rum will be sustainably certified by Bonsucro, a nonprofit that certifies suppliers who support fair labor and environmental protection in sugar producing communities, by the end of this calendar year, ahead of our original 2022 goal.
- We fielded our latest Global Primos Engagement Survey in FY17 and 89% of employees provided their input – a participation rate well above best-in-class. In addition, as compared with our FY15 survey, our Engagement Index score (consisting of items relating to satisfaction, pride, retention, and advocacy) rose two points from 67% to 69%.
- Our goal every year is to put “Safety First” to achieve an accident-free environment. In FY17 we had a total of 18 accident-free sites and the second-best year in our Company LTA (Lost Time Accident) rate both in our manufacturing sites and in our offices. We improved by 18.5% over our performance versus FY16.
- Through our Spirit for Life, Caring Together volunteer initiative, our offices and manufacturing sites supported charitable organizations to address the many issues facing our local communities. Through activities such as blood drives, clothing and food donations, disaster relief assistance, and cleaning our local parks, we remain committed to our communities in the more than 40 countries where we live and work.
- We are so proud that through BACARDÍ® NO COMMISSION events, and in collaboration with our Global Chief Creative for Culture, Swizz Beatz, 100% of the sale of artwork from the events go directly back to the artist. As of the end of FY17, through events in Miami, New York, and London, the movement has put $3 million directly back into more than 80 artists’ pockets!
In addition to reporting on our progress as a signatory of the UN Global Compact, we also address the UN Sustainable Development Goals and our role, in partnership with others, to tackle the most pressing social, economic, and environmental issues. We will continue to review the targets set within each goal that is relevant to our business, to integrate them into our long-term planning. Comprehensive information on our CR program can be found within www.BacardiLimited.com.
At the time of publication of this report we have been in a transition process for the role of Chief Executive Officer from Michael J. Dolan to Mahesh Madhavan. Mike will be retiring as CEO and from our Board of Directors, and we thank him for his significant contributions to our Company. Under his leadership, we are proud of the strides Bacardi has made in Corporate Responsibility and look to Mahesh and his leadership and passion to drive our CR program forward.
In addition, many of our facilities, offices, and employees have been directly impacted by an active hurricane season and other natural disasters. In the wake of this devastation Bacardi Limited and the Bacardí family committed US$3,000,000 for disaster relief and recovery efforts in Puerto Rico, Florida, other islands in the Caribbean, The Bahamas, and Mexico. Bacardi will provide immediate relief and longer-term rebuilding efforts in collaboration with several non-profit partners and local governments, including the Government of Puerto Rico, in the affected communities.
We know our people are our best ambassadors of our corporate values and we will look to continue to empower them to do the right thing for Bacardi, our stakeholders, and for our communities moving forward. It’s been an exciting year, but all of us at Bacardi are even more excited for what’s to come.
Facundo L. Bacardi