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Partnering for Progress The unique role of beer, wine, and spirits producers JULY 2018 A report prepared by the International Alliance for Responsible Drinking on behalf of its members
Partnering for Progress Partnering for Progress
UN Sustainable IARD
Development Goals members
Role of the private sector This means that the private sector has a We are the 11 members of the International their corporate responsibility reporting. This report
crucial role to play, with committed and Alliance for Responsible Drinking (IARD), All of our member companies have done
The SDGs encourage accountability, responsible companies leading the way. a not-for-profit organization dedicated to so, reflecting our commitment to be active We are collaborating with a wide
innovation and, perhaps most importantly, The UN recognizes that some companies addressing harmful drinking and promoting partners in delivering the vision of the range of stakeholders including
Background collaboration. The UN recognizes that are already incorporating the SDGs into responsible drinking. As the leading global SDGs. regional, national and local
the SDGs “can only be realized with a their operations and that sustainable beer, wine, and spirits producers, we are governments, civil society and
The United Nations (UN) strong commitment to global partnership development is a win-win: committed to setting the highest standards As global companies, we are well placed others in the private sector to share
Sustainable Development Goals and cooperation” [1] and has embedded for responsibility across our industry. to add value to collaborative efforts: we best practice, learn from others,
(SDGs) are a “universal call to collaboration and partnership between “Companies that introduce sustainability operate in markets around the world innovate to find better ways to do
action to end poverty, protect the governments, civil society, and the private into their business models are profitable Our companies positively impact a providing unique means to share best business, to monitor our impact,
planet and ensure that all people sector at the core of the agenda: and successful, with positive returns broad range of SDGs, from our ongoing practice and to scale initiatives to improve and to ensure accountability. We’re
enjoy peace and prosperity” [1]. on capital in terms of reduced risk, efforts to reduce harmful drinking and sustainability and responsible development constantly seeking to improve our
The UN Member States adopted “Our UN country teams will work harder diversification of markets and portfolios, promote responsible consumption, across the globe. As IARD members, we practices and recognize that there is
the 17 SDGs in 2015. The SDGs to support countries in brokering increased revenue, reduced costs, and to the innovations that are improving have a proven track record of improving more that we can do.
build on the previous Millennium partnerships for innovative finance, improved value of products. The private our environmental footprint, to our standards through partnerships like
Development Goals and form and better accessing domestic and sector is increasingly adopting social and contributions of providing economic the Beer, Wine, and Spirits Producers’ This report highlights some
the foundation of the global international, public and private environmental goals as core business growth and decent work. Momentum is Commitments to Reduce Harmful Drinking. examples of the ways we are
development agenda; they are resources for sustainable development… values, and there is agreement among building in the private sector around the We have taken action across the world, already embedding responsible
integrated and indivisible and We must unite public and private business, government and civil society SDGs: a recent KPMG assessment [4] both individually and working together, to and sustainable practice within
balance the three dimensions investors around new concepts, solutions that the 2030 Agenda can only be met found that 40% of the world’s 250 largest raise standards in responsible advertising, our operations, and sets out our
of sustainable development: and instruments, and we need to do so at with public and private investments” [3]. companies had integrated the SDGs into retailing, and consumer information [5]. ambition for a sustainable and
the economic, social, and scale” [2]. inclusive future.
environmental. United Nations Development Programme
António Guterres, Secretary-General, (UNDP)
United Nations
2 3
Partnering for Progress Partnering for Progress
Reducing Driving
harmful social
drinking responsibility
91%
As IARD members, we are committed to We recognize that there is more we can
reducing harmful drinking and, in 2013, do to combat harmful drinking; that is why
we started working towards our joint our CEOs’ most recent commitment in 2017
Producers’ Commitments. We report was to develop new responsible marketing of contracts with advertising
annually on our progress toward these standards for digital channels, and we are agencies globally included
commitments, which cover the following working with others to make these a global clauses to comply
key areas: standard of good practice: with responsibility
standards [5].
Reducing underage drinking
Strengthening and
expanding marketing codes
“Although we have achieved significant progress in strengthening
and expanding marketing codes of practice, digital media presents
evolving opportunities with improved consumer insights, better
331 drink driving programs under the Producers’
Commitments in 80% of the countries where
we are commercially active [4].
of practice data and technology. We are determined to use these opportunities
to set robust responsibility standards for digital marketing that
take account of the changing landscape and reassure others that
Providing consumer we direct our advertising only to those adults who can lawfully buy Diageo and AB InBev both partner with the United Nations Institute
information and responsible our products. By working with our marketers internally, agencies for Training and Research (UNITAR) to bring capacity building and
product information and social media companies we believe we can create these targeted interventions to the countries with highest death rates due to
rigorous standards for our industry and potentially for others. road traffic [7, 8]:
In the US, AB InBev, Molson Coors,
We know we can achieve more together than we can by working “We are very proud of this partnership, which aims to improve the Brown-Forman, and Heineken
Reducing drinking and separately, and we welcome the opportunity to play a full and capacity of public and civic entities involved in road safety across together partner with government,
driving proactive role in further reducing the harmful use of alcohol in the world especially in countries with a high incidence of road universities, and national sports
support of the United Nation’s Sustainable Development Goals” [6]. accidents and injuries” [8]. leagues to reduce harmful drinking
at sports venues through TEAM
Enlisting the support of IARD Member CEOs Alex Mejia, Programme Director at UNITAR Coalition [9].
retailers to reduce harmful
drinking
4 5
Partnering for Progress Partnering for Progress
Global impact
of IARD
members
We are global companies that engage Molson Coors partnered with mass Pernod Ricard India established Asahi aims to transition the Barley
with governments, communities, and transit systems to provide over and supports four fully-equipped, of Hope project, begun after the
businesses around the world. This 600,000 free rides in North America free centers for primary healthcare Great Japan Earthquake with
map provides some examples of how in 2016 [20]. and preventive awareness, involvement from a local university
we engage with these stakeholders to along with mobile ambulances and the Reconstruction Agency, to a
deliver shared value to people across in Gurugram (Haryana), Nasik sustainable local business by 2020
the globe, using our scale to help (Maharashtra), and Behror [12].
deliver sustainable development. (Rajasthan) [18].
Beam Suntory’s Sauza Tequila Through partner Water.org, AB Diageo works with government Kirin improves the sustainability
reclaims wastewater to irrigate the InBev’s Stella Artois brand will and NGOs to address barriers of tea farms in Sri Lanka through
town of Tequila, Mexico, reducing help provide 3.5m people with to women’s empowerment in training and support to obtain
annual groundwater consumption sustainable access to clean water smallholder farming in Ethiopia Rainforest Alliance certification [11].
by up to 70% in this water-stressed by 2020; over a million people have [10].
area [19]. been reached already [15].
Bacardi’s No Straws initiative aims The Carlsberg Circular Community The Heineken Africa Foundation Brown-Forman supports the White
to phase out single-use plastic is a collaboration platform for funds partnerships between NGOs Oak Partnership to improve the
straws to reduce ocean pollution; various partners to optimize and local company operations resiliency of oak-dominated forests
over a million fewer straws were packaging materials for reuse and that provide communities with [14].
used in 2017 [13]. recycling [16]. mother and child care and water,
sanitation, and hygiene services
[17].
6 7
Partnering for Progress Partnering for Progress
Improving Doing
environmental more
sustainability with less
Today’s global environmental challenges Carlsberg is developing a 100% biodegradable Green Fiber How cross-industry partnership BIER members saved
require bold and urgent collective action, Bottle with packaging company EcoXpac and Technical is improving efficiency 5.25 billion KwH in 2015 [25]:
and the SDGs attest to the importance of University of Denmark [21].
these issues for global development. Many of us have also joined the Beverage
31%
Industry Environmental Roundtable (BIER).
We recognize the need to reduce
environmental impacts by taking action
This coalition of companies from across the +
Molson Coors invests anaerobic digestion to recover beverage industry* (including non-alcohol
in meaningful and measurable ways; beverage companies) provides a platform
biogas for renewable energy and reduce wastewater more energy than the
accordingly, we are actively working on, or for monitoring and benchmarking data,
discharge [20]. Hoover Dam produces
have already set, Science Based Targets for sharing best practice, and raising standards in an average year [28].
reducing greenhouse gas emissions. for the whole industry. Collectively, the BIER
members have substantially reduced their 5.25 4
use of energy and water, helping to shrink billion billion
Asahi is developing processes to enable its brewing
their environmental impact. Cross-industry KwH KwH
byproduct to be used in reducing fertilizer needs for crops
collaboration provides a strong example of
like rice, potato, wheat, soy beans, and apples [22].
the value of partnership for advancing the
SDG agenda and challenges the private
sector to achieve more.
The Kirin and Asahi joint railway shipping center in
Kanazawa cuts down on the need for transport by truck
and thus reduces emissions [23].
Over half of IARD members are patrons of
the UN CEO Water Mandate. BIER members used This is equal to Or enough to fill the
87 %
Empire State Building
69 billion fewer liters
more than 65 times
Pernod Ricard disseminates its model method, first
of water in 2015 [25]: [27].
implemented in Cognac, France, for integrating biodiversity
65
*AB InBev, Bacardi, Beam Suntory, of the annual non-
preservation measures in vineyard management [24].
Brown-Forman, Carlsberg, Diageo,
Heineken, Molson Coors, and Pernod
bottled water use of
the nation of Fiji [26].
x
Ricard are among BIER’s 17 member
companies.
8 9
Partnering for Progress Partnering for Progress
Contributing Working with
“Private business activity, investment and innovation are “We value in a positive way the efforts of IARD to foment,
major drivers of productivity, inclusive economic growth through its programs, the responsible consumption of
to economic communities
and job creation” [29]. alcohol to prevent traffic crashes, and above all: save lives”
[34].
Resolution A/RES/70/1 adopted by the UN General
growth
Assembly in 2015 Tobias Crespo, Congressman of the Dominican Republic,
April 2017
As leading beer, wine, and spirits their operations; these are commitments IARD members use SEDEX and including reducing underage drinking and For example, in India, several companies
producers, we are major contributors that we integrate across our supply chains SAI tools to audit their suppliers on discouraging drink driving. with operations in the region have
to economic activity around the world. and continue to strive to do better in. sustainable material sourcing and established initiatives to support
Globally, the alcohol beverage market is ethical practices. Prior to IARD’s involvement, the Dominican environmental sustainability.
valued at USD $1.4 trillion [30] and this We also believe in spreading sustainable Republic did not have a legal framework
figure includes millions of businesses from practices and we collaborate with Diageo’s Plan W empowers for blood alcohol concentration (BAC) Diageo has partnered with a not-for-profit
agriculture, production, distribution, retail, specialized third parties to audit our women through training in In addition to contributing to the limits for drivers. IARD worked with public, to provide toilets, purification systems, and
hospitality, and tourism. suppliers to ensure sustainability and vocational skills such as financial SDGs at the global level, IARD private, and civil society stakeholders to sanitation education to 52,000 people in
ethical practices across all elements of literacy, hospitality, social members are working at local build capacity and implement evidence- water-stressed areas [35].
As IARD members, we recognize our business. Furthermore, we recognize enterprise and language [31]. and national levels to promote based solutions. This work included
that economic development must be that diverse, inclusive, equitable, and Pernod Ricard has built rainwater
sustainability and responsible IARD providing technical expertise and
sustainable and socially responsible and sustainable economic growth requires The Spirit Forward series within reservoirs totaling 3.2 million liters in arid
development. The following best practices from around the world,
that is why we are all signatories to the UN further action and we are committed Bacardi’s Women In Leadership Rajasthan to collect water for local villages’
snapshots demonstrate how we conducting a pre-intervention survey,
Global Compact. The Global Compact’s to improving access to economic initiative empowers female leaders domestic needs and crop irrigation [36].
are engaging with and promoting donating breath testing devices, and
10 principles call on businesses to protect opportunities in the communities in which in the hospitality community [32].
the SDGs in the markets in which providing training in their use. As a result of In Rajasthan, Beam Suntory has partnered
human rights and labor standards across we operate. we operate: this collaboration, implementation of a legal with Banka BioLoo to provide eco-friendly
BAC limit is expected to occur in 2018. toilets to a government school in Alwar
district, and uses a rooftop solar energy
system that produces green electricity and
India offsets use of diesel power generators [37].
Economic IARD members High-value
opportunities products Dominican Republic As IARD members, we recognize the AB InBev collaborated with the
account for
importance of environmental sustainability International Crops Research Institute for
Millions of businesses 46% of the volume of the Globally, 25% of alcohol beverages In 2016, IARD signed a memorandum of not just to business, but to the planet the Semi-Arid Tropics (ICRISAT) to launch
– retail, hospitality, global recorded* alcohol consumed in 2010 were estimated understanding on behalf of its members itself. That’s why we have set ambitious water-dispensing systems. In the first few
and tourism beverage market [30] to be from unrecorded sources with the Ministry of Health and Social goals for improving our footprint and months of operation, over 100,000 people
[33]. This proportion is much Assistance of the Dominican Republic to employ science-based targets to ensure received water [38].
480,000 74% of the value of the higher in some regions than others. work together in a range of areas, accountability to these goals.
direct employees global recorded* alcohol
beverage market [30]
10 11
Partnering for Progress Partnering for Progress
Key
Points
3.3 m
rms il lion
+ fi
00
emplo
d yed pe
,0 foo d an bevera in f
o op
75 ovidingges to ser d an le
ge o
(6.5% vi d
stry of a
pr vera indu ll w ces
ork
b e sm ers
uri )
to
We are having an impact and are determined to do more
$5
s
We fully support the SDG agenda and will continue to be important partners in
an otel
n
tot
llio
b e or t s
h
delivering the vision outlined by it. By working collectively, we are having a large and
al a ge
b
ts
ex
t
rest t in
ver
illio l
inves direc
bi
p
lco
positive impact across the world. We are determined to do more: to lead the way for the
a
aur
n
$1.13
tme
ho
n
private sector in responsible consumption, environmental sustainability, and inclusive
gn
forei
economic development.
#
1 #
6
and
Global businesses can deliver on a wide range of SDGs across
Beer Spirits their operations
The breadth of the SDG agenda provides both a challenge and an opportunity for
Agricultural Exports businesses to place responsibility and sustainability at the center of all that they do.
As beer, wine, and spirits producers, we recognize the importance of responsibility to
our business and have a strong track record of delivering positive impact through our
Producers’ Commitments. As this report shows, we are also contributing to a broad
range of SDGs, from providing decent work and economic growth, to enhancing the
sustainability of our operations, to improving standards among the businesses we work
Mexico wholesalers, and through to retailers, and firms that provide food and beverages as
with.
the hospitality and tourism sectors. part of the tourism industry [40]. Indeed,
Economic development is crucial to the some 3.3 million Mexican workers (6.5%
SDG agenda, but it must be achieved In Mexico, alcohol beverages are a major of all workers) are employed in food and Businesses and governments can achieve more by working
through inclusive and secure employment. economic contributor to the national beverage services [41]. This economic together
The alcohol industry involves a wide output. Beer is the top agricultural export, activity has proven attractive to foreign
range of businesses across the economy, generating USD $3.5 billion in 2016, investors with hotels and restaurants alone Partnership and collaboration are required to meet the ambition of the SDG agenda
providing jobs and investment to support with spirits generating an additional $1.5 generating $1.13 billion in foreign direct and we will continue to explore more opportunities to work with governments and
economic growth across the supply chain, billion [39]. Alcohol beverages are also an investment in 2012 (latest available data) other stakeholders around the world to improve outcomes on the ground. Robust
to farmers and producers, distributors and important contributor to more than 75,000 [40]. partnerships can only thrive where there is a broad, responsible, and regulated private
sector, able to play its role in solving sustainable development challenges. By working
together we can leverage the reach and innovation of global businesses to contribute to
the work of governments, NGOs, and citizens to deliver a sustainable future.
12 13
Partnering for Progress Partnering for Progress
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The Jefferson Building 1225 19th Street NW Suite 500 Washington, DC 20036 Phone: 1.202.986.1159 Fax: 1.202.986.2080 Email: info@iard.org Web: www.iard.org
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