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Environmental supply chain management

The complex global challenges we face – from climate change to resource scarcity – mean that improving the environmental sustainability of our suppliers is crucial for the long-term health and growth of our brands.

Our approach

Beyond our agricultural footprint, which has a large impact on water, one of the largest environmental impacts of our supply chain is carbon emissions.

We believe the best approach to understanding this risk is through collaboration with others, in particular the Carbon Disclosure Project (CDP), an independent not-for-profit organisation holding the largest database of primary corporate information on climate change in the world. Working with Supply Chain project helps ensure we are not overburdening our suppliers with environmental measures and requests.

Performance

We extended our relationship with the CDP this year, joining their 2012 Supply Chain programme, which is helping us engage our key suppliers on carbon emissions. This year we approached 125 of our key suppliers to work with us on this initiative, a significant step in our effort to reduce the environmental impacts in our supply chain.

Joining this programme will help us understand better the carbon emissions associated with our supply chain. It will also help us capture and report our Scope 3 emissions (which includes those from our supply chain), and identify best practice and opportunities to reduce them. From our initial analysis we decided to focus on six categories where we see the biggest impact: packaging; raw materials; logistics; energy; third-party manufacturing and information services.

Meanwhile, we continued to make progress against our operational goal to reduce our own carbon emissions by 50%. In 2012, approximately 52% of our electricity for supply sites came from low-carbon sources such as wind, hydro and nuclear, which is on par with our performance last year. In the United Kingdom, 100% of our electricity comes from low-carbon sources.

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