Responsible Sourcing

Doing business the right way has always been the Molson Coors way. It’s part of our heritage and guides our collective journey to becoming a top performing global brewer.

An integral part of doing business the right way is ensuring that we procure in a manner which is sustainable for our business, for our communities and for the environment. Our ambition is to adopt best practice standards and techniques and to work with suppliers who do the same allowing us to jointly:

  • Meet and exceed our customers’ growing expectations to procure ethically and responsibly.
  • Have better risk management by protecting our interests throughout the supply chain.
  • Drive efficiency and continuous innovation through our supply chains.

Sustainable Procurement Strategy

We are committed to an ethical and sustainable supply chain and to manage the supply of goods and services in a responsible way by adopting a risk and opportunities based approach to identify our priorities. Thus, Molson Coors places its key focus areas on environmental, social and economic sustainability improvements. Our employees are trained to incorporate these areas into supplier selection and the procurement of materials for our business.

In 2012, we established our Supplier Standards which set out the minimum expectations of suppliers around environmental, social and economic sustainability. Our standards also cite our global Packaging and Agricultural Brewing Ingredients policies and the expectations therein.

We expect suppliers to make every effort to limit the environmental impact of their business operations and to have appropriate programs in place to help achieve this objective. Suppliers are required to demonstrate compliance against the applicable environmental expectations of Energy, Emissions to Air, Natural Resources, Biodiversity, Water, Waste, and Pollution. Our Supplier Standards also set out the minimum compliance standards for social and economic sustainability, including: ethical business practices, commercial standards, employment standards and community responsibilities. Suppliers are required to comply with all social and economic expectations.

In 2015 our Supplier Standards were communicated as an ongoing requirement to 100% of our global supply base through our Standard Terms and Conditions. We have incorporated sustainability metrics into our Supplier Quality Scorecard. The scorecard now tracks environmental performance data (CO2, Energy & Water) on a quarterly basis with our Tier 1 suppliers. This allows Molson Coors to track the progress of our suppliers’ impact on the environment and reward those who achieve positive results.

Molson Coors is committed to sourcing from suppliers, who grow, produce and deliver agricultural brewing ingredients in a manner that recognizes and embraces our quality, safety and sustainability standards. We support our suppliers and producers in achieving this by working with them to recognize and adopt the six principles of our Agricultural Brewing Ingredients Policy. The policy covers (as a minimum) barley, wheat, corn and hops. The implementation and governance of this policy is supported by our wider sustainable procurement program, and is also included in our Supplier Standards.

Our Supplier Risk Dashboard and Heat Map serve as the Company tool to facilitate the early detection of sustainability risks in the supply chain. The Supplier Risk Dashboard identifies sustainability risks for each category against 8 focus areas: energy, emissions to air, natural resources, biodiversity, water, waste, pollution, and labor & ethics, and provides an overall category risk rating. If a category is found to constitute a high overall risk, or contains high risks in relation to the focus areas, category managers will incorporate questions into tender documentation and performance scorecards. The intent is to investigate, mitigate and address these potential risks.

If supplier practices do not meet our Standards, we will work with them to achieve compliance. Where compliance is not possible, and progress cannot be made, we may be forced to seek alternative supply. Molson Coors may also request further verification from suppliers in the form of self-assessments via a third party or site audits. In 2015:

  •  Audited 43% of Tier 1 suppliers and 91% of high risk suppliers (43 of 46).
  • 90% of assessed Tier 1 suppliers have a corrective action plan.
  • 70% of suppliers with corrective action plans have improved their ESG performance since the plan was launched.

One of the major opportunities we see within our supply chain is to create a more robust and standardized environment for companies to share information about their sustainability practices. Just as we report on our goals and progress so that others can evaluate our sustainability, we benefit from similar data about the sustainability of our suppliers.

In 2015, we adopted a new approach to driving improved risk management through a new Supplier Information Management (SIM) solution. It requires all new suppliers to register and agree to our Supplier Standards prior to being considered.  Supplier profiles can contain CR information, including Supplier Ethical Data Exchange (SEDEX) membership status. SEDEX provides a standardized format, based on internationally recognized protocols, for companies to voluntarily report on their sustainability practices.

In 2015, we used 3rd party assessment tools to evaluate 1012 high risk packaging, brewing and merchandise suppliers. This included a third-party assessment tool to ensure financial sustainability risks are mitigated on an ongoing basis by working with suppliers that have a strong financial foundation and future.

We are always looking for opportunities to work with our suppliers, collaborating to minimize our environmental impact and learn from best practice.

  • We partnered with our PET supplier in the Bulgaria to reduce the weight of our bottles. This down weighting meant we used 6% (46 tonnes) less material and saved the company $70,000 annually. See our Case Study to learn more.
  • Project Midas, a global project, takes co-products, essentially leftover brewing materials from the brewing process, and finds alternative uses for them rather than sending them to the landfill. Those alternative uses allow Molson Coors to create a sustainable revenue stream while supporting our zero waste to landfill initiative
  • We are expanding the Cobra portfolio to include a 620ml container in addition to the established 660ml can. The collaborative process with our suppliers led to a 20g reduction in material use in both containers. This will result in a $56,000 annual saving and a 345,241kg weight reduction.