Targets & Progress

The table below shows our progress against targets for fiscal 2018. Full details of our performance can be found in the sections for each of our Corporate Responsibility pillars.

FY18 Marketplace Targets FY18 Marketplace Progress
Update Bacardi responsible drinking website information to incorporate International Alliance for Responsible Drinking (IARD) facts and other global and local alcohol responsibility resources and link to Include nutritional information on www. Bacardi’s Slow Drinking website was updated to include relevant International Alliance for Responsible Drinking info. In addition, the Bacardi Limited nutrition site was launched which includes nutritional information for products available in four countries in their local language.
Increase percentage of active priority country responsible drinking initiatives, whether in partnership with other industry members or Company led, including enhancing Slow Drinking. Bacardi is active in 86% of priority markets on responsible drinking initiatives. (Examples of these markets include: United States, France, Russia, Spain, United Kingdom, Canada, Mexico)
Launch updated marketing compliance training module globally for relevant marketing, creative excellence, sales and agency staff to use for new hires and as a yearly refresher for existing employees, with translation available in at least eight languages. The training module was delayed due to updates to the Global Marketing Principles. Now finalized, the module will be housed on the global Human Resources training site to be used by all relevant staff and agencies. In addition, we will work to translate the module into additional languages over the next two years.
Design and launch updated responsible marketing principles for all company staff. New Global Marketing Principles were drafted and although the launch was delayed due to internal review and management changes, the Principles will be communicated out to all Company employees in FY19.
100% use of new digital legal compliance system (Creative Approval Hub) by global marketing, creative excellence, legal teams, and advertising agency personnel to track global marketing campaign compliance approval. Bacardi underwent a change in marketing leadership in FY18 resulting in the development of a new Digital Asset Management system. The new system will incorporate legal compliance and approval workflows when launched in FY19.
Through partnerships with IARD and local Social Aspect Organizations (SAOs) and Trade Associations (TA), increase under the legal drinking age and influencer reach by 20% through responsible drinking initiatives, as measured through the Producers' Commitment reporting. Bacardi reached more than 9.7 million underage individuals and influencers in 2017 with educational materials to prevent underage drinking and promote responsible drinking as measured through the Producers’ Commitment reporting; an increase of 250% from 2016.
100% of marketing agency contracts in compliance with the Producers' Commitments. 100% of marketing agency contracts are in compliance with the Producers' Commitments
100% of traditional and digital media placements by company with at least a 70% minimum legal drinking age audience. As calculated by our media agency partner, we continue to place 100% of traditional and digital advertising in mediums with at least a 70% minimum legal drinking age audience. Often, these numbers are more than 90% for both traditional and digital advertising.
All company products to have at least one responsible drinking website, messaging, or logo on label. All products sold in our priority markets have labels which include a responsible drinking message, logo or website address. 66% of total volume sold contain both responsible drinking messaging and a website address.
Pilot company employee responsible drinking pledge in select countries to ascertain value and viability for potential global roll-out. The responsible drinking pledge was piloted in a few priority markets, including our largest market of the U.S., and made available to all offices/sites through our CR Month activities. We will continue to share the pledge principles to employees through internal communications.
Ensure all six safeguards of the Producers’ Commitments Digital Guiding Principles are in place for all country-level brand social media platforms and websites. An audit, sanctioned by the International Alliance for Responsible Drinking, found that of the countries audited, Bacardi branded social media platforms and websites had a 79% full compliance rate for all safeguards and an average compliance rate of 91%.

FY18 Environment Targets FY18 Environment Progress
Implement specific action plans to reduce water consumption, with special focus at three of our main distilleries located in Puerto Rico (Cataño) and Scotland (Aberfeldy and MacDuff).  Due to changes in our strategy, focusing more on consumption of water, versus overall usage, these action plans should put us on track to achieve a 50% reduction (vs. FY06) during the second half of this reporting period. We are still aiming to reach the original 55% reduction goal, but additional time is expected to get there.   At the end of FY18, we had a 50.4% reduction in overall water usage (vs. FY06). Water reduction initiatives and water reuse projects implemented at our main distilleries (Cataño, Aberfeldy and MacDuff) were key to helping the company achieve a 7.3% improvement, as measured by the efficiency index, versus FY17.    
Define new targets (short and long-term) for water use and GHG emissions, as part of our future sustainability strategy. The new scope will be expanded to go beyond our four walls, with additional focus on the upstream portion of our value chain. The target for water will use a context-based approach -- focusing on local watershed conditions.  A science-based method will be used for setting a target for GHG reduction.    After achieving a 59% reduction on GHG intensity (vs. FY06), new targets have been developed for our operations and the overall supply chain.  These new targets are focused on absolute reduction, following a science-based approach. For water, new long-term targets were developed focusing on local watershed conditions and consumptive water use, additional reduction at our operations, and adding the "replenish" dimension to continue our journey of achieving a Sustainable Water Balance.
Continue with the implementation of required waste stream action plans, aiming to achieve less than 0.32% of total waste from production sites to landfill, towards our goal of Zero Waste-to-Landfill of all sites by 2022. By the end of FY18, only 0.4% of the total waste from production sites was sent to landfills. While we did not reach our original FY18 target, we believe we are still on track to achieve the 2022 target of Zero Waste-to-Landfill.
Work on our transition plan to the new ISO 9001-2015 and ISO 14001- 2015 management system standards at all manufacturing sites, in order to comply with the three-year transition process, set by ISO to maintain our certification. Gap assessments to be completed and action plans in place to achieve full transition by September 2018. Gap assessments were completed and workstreams created to focus on the changes required to make the transition to the new ISO management system standards. Workstreams have completed the required tasks to allow the evolution of our management system, with new certification complete in July 2018.
FY18 Responsible Sourcing Targets FY18 Responsible Sourcing Progress
Ongoing target to ensure 100% of our suppliers assessed to our Vendor Qualification Process (VQP). 100% of suppliers are assessed to our VQP
95% of Global Direct spend and 100% of Global Point of Sale suppliers linked to Bacardi through Sedex. In addition, we will work with local teams to ensure local POS suppliers are using Sedex and completing SAQs. At the end of FY18, 88.5% of our Global Direct spend is linked to Bacardi through Sedex, with more than 50% of those linked audited. 100% of our Global Point of Sale suppliers are Sedex linked to Bacardi. We continue to have challenges in ensuring local POS suppliers are using Sedex and will work on an action plan on how to engage local teams to address these challenges moving forward.

Raw Material Action Plans:

• For grapes, work with Prosecco and Asti Consortiums to achieve highest level of standards with focus on environment, ethics, and economics; including for Asti a reduction of residual phito treatment (35%) and for white table wine a carbon footprint reduction (20%).

• Action plan defined for Agave suppliers to be sustainably certified.

• Botanicals action plan underway, our goal is for 60% of main botanicals sustainably certified by FY18, 100% by FY19.

• Continue to build on wheat supplier improvement programs.

• LEBLON® to achieve Bonsucro certification.

• During FY18 we worked with the Prosecco and Asti Consortiums, and Equalitas (focuses on the social, environmental and economic pillars of sustainability of the wine sector) to develop a plan to implement their standards for our grape suppliers. In FY19 we will initiate a gap assessment and identify the next steps for the certification process. The Asti Consortium is still working towards their ongoing residual phito treatment and carbon footprint reduction targets, hoping to achieve in crop FY19.

• In FY18, we worked with our Cazadores Agave suppliers to prepare for their Sedex linked audit. In addition, we are working with on-the-ground partners to assess certification options for Agave moving forward.

• The botanicals action plan is defined, and we are on track to have ECOCERT certification (a certification organization for sustainable development) for 50% of our main botanicals in 2018 and 100% in 2019.

• Our wheat supplier improvement program is ongoing, and we are working with our supplier on sustainable farming practices.

• In FY18, we were able to achieve Bonsucro certification for LEBLON®

For sugarcane-derived products for rum, ensure VQP audits for new suppliers and work with them to achieve Bonsucro certification by end of CY17. • As of end of CY17, all new suppliers have completed VQP audits and 86.3% of our sugarcane-derived products for BACARDÍ rum are sourced from Bonsucro-certified suppliers
Train all new strategic raw materials and packaging suppliers on Good Spirited program goals. Work with suppliers to achieve Forest Stewardship Council certification for labels and corrugated packaging.

• While ongoing suppliers received training on our Good Spirited program over the last few years, all new strategic raw materials and packaging suppliers were trained on our Good Spirited programs and long-term goals during FY18.

• As of mid-2018, 90% of our corrugated packaging suppliers are Forest Stewardship Council (FSC)/Programme for the Endorsement of Forest Certification (PEFC)/Forestry Sustainable Initiative (FSI) certified.

• We are working with our individual box and label suppliers on action plans to achieve FSC certification.As of mid-2018, 52% of our individual boxes and 66% of our labels are sustainably certified.

FY18 People Targets FY18 People Progress
Globally embed Becoming Bacardi Mobile Application across all countries. 95% of new hires complete the four elements of Becoming Bacardi in all countries in the first 90 days (Mixology, Development Plans, Buddy, and Becoming Bacardi App). This target was not achieved as we ran into challenges in use and monitoring. The Becoming Bacardi Mobile Application is available across all countries; however, we are still under 95% completion for new hires.  
Pilot Applicant Tracking System to increase our ability to tap into and select internal and external talent for Bacardi. Pilot Next Move solution (a proactive internal head-hunting program to explore career interests of employees after more than two years in current position). The new Applicant Tracking System was launched with 64,647 unique candidates in 32 countries posting 549 available roles. The Next Move launch was delayed but will be integrated into talent and succession activities, including tailored job alerts available by country and function, in FY19.
Maintain current Women in Leadership (WIL) ratios and expand external presence through S.H.E. Summit to Asia and Latin America. Launch of Women in Leadership mentoring program in Eastern Europe and Northern Europe. In FY18, 36% of management positions were held by women; 25% of executive positions; and 38% of all positions across the organization. In addition, WIL established a global governance and support structure to ensure successful expansion of activities across all our markets. The expansion of the S.H.E. Summit is in progress, as well as the Women's Empowerment Series. The WIL mentoring program in Eastern Europe resulted in 67% of participating women being promoted to new roles within the company.
10% of employees globally involved in Action Teams, as a follow-up to the Primos Engagement Survey, in line with FY15 participation. Pulse Surveys deployed on a regional basis. There were 65 Action Teams in FY18, representing 8.2% of employees globally. Pulse surveys have been deployed in multiple regions as a follow-up to the Primos Engagement Survey.
Continue to expand Coaching to Win (a development program aimed at building fundamental coaching skills for Bacardi leaders to unlock the performance and potential of their teams) through two workshops per region or function. In addition, we will certify 13 internal talents with the International Coach Federation (coaching certification body) to ensure high quality delivery. Build internal expertise extending Leadership Insights (a series of intensive diagnostic and coaching experiences at different leadership levels) across the organization. Roll out Bacardi Ready in India. Pilot Volemos (a joint graduate development program for Bacardi and its North American distributor) and kick off second Rising Stars program. We expanded Coaching to Win with multiple workshops reaching 300 Primos globally. Eight new coaches participated in the International Coach Federation certification program with each supporting the deployment of Leadership Insights. Pro-bono coaching hours for the new coaches were committed to supporting the NextGen “Shake Your Future” students in Paris. Bacardi Ready was successfully delivered to 25 employees in India. Volemos deployed in North America and Rising Stars (a strategic talent development program focused on new and innovative ideas) relaunched, democratized, and rebranded as the NextGen program.
FY18 Safety Targets FY18 Safety Progress
Improve overall B-Safe Observations* rate by 30% vs FY17. While we started to report this rate globally in FY16, we believe our FY17 target was most likely set too low with activities expanding. Our FY18 target is reasonably ambitious as B-Safe Observations reinforce safe behaviors and correct unsafe behaviors through feedback. This is one of the key elements of our safety culture and is contributing to the improvement of our safety performance. This target will be supported by the training of 100% of our employees in all our manufacturing sites in conducting B-Safe Observations. B-Safe Observations rate was improved by 57% vs FY17. This rate was achieved by getting 100% of our employees trained as B-Safe Observers in all our manufacturing sites.
Overall LTA rate of less than 1 per million of worked hours by 2023. Overall LTA rate was 2.0 per million of worked hours. Unfortunately, we ran into challenges at our manufacturing sites and had a 3.8 LTA rate (with 17 LTAs) against a target of 1.6. We are launching additional supporting programs to reach our overall safety goal of having less than 1 LTA per million worked hours by FY23.
Safety First program** – achieving all Silver standards by FY18 in all plants Silver level was achieved in all active Bacardi plants, with new locations achieving Bronze level.

* B-Safe Observations are behavioral based safety observations and feedback, based on best practice Behavioral Based Safety programs, to positively reinforce safe behaviors at work, started at Bacardi in 2009. All employees at our manufacturing sites can conduct B-safe Observations as long as they receive the proper training.

**Safety First is our Bacardi-created program to raise our safety culture, designed with four levels: Foundation (Bacardi mandatory minimum standards), Bronze (safety practices right above mandatory), Silver (advanced safety practices), and Gold (‘best practice’ safety practices according to top external benchmarks).

FY18 PCI Targets FY18 PCI Progress
Roll out Charitable Donations policy globally through trainings, webinars, and other internal communications tools to all employees. The new global Charitable Donations policy was rolled out through internal communications, though full training will not happen until FY19, as some internal finance systems need to be updated to better track accounting for monetary and in-kind donations.
80% of CR Ambassadors to record employee engagement in CR Month activities. 48% of CR Ambassadors submitted a CR Month activity in our CR Database.
95% of the 40 countries where Bacardi has employees to participate in a CR Month activity. 73% of the countries where Bacardi has employees recorded participation in a CR Month activity.
Update financial systems to track all Bacardi philanthropic giving. This process has started, including an in-depth internal audit to identify the gaps and recommend best practice and next steps. The roll-out of updating the financial systems will be complete in FY19.