Principles In Action: A Summary of our Efforts

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1 Principles In Action: A Summary of our Efforts Prepared September 2011

2 W R I G L E Y : P R I N C I P L E S I N A C T I O N A letter from Martin Our success as a global gum and confections business is the result of our incredible team who put our principles into action every day. Through our principles-based approach, we maintain a constant focus on commitments to Quality, Responsibility, Mutuality, Efficiency and Freedom so that we can make a difference to people and the planet through our performance. As our business has grown, so has our opportunity to create positive change. Our associates great work around the world has led the business to new heights and that success has allowed us to share these benefits with our consumers, through our oral health initiatives, with our communities, through our enthusiastic volunteer efforts and with our business partners by building mutually beneficial partnerships. All the while keeping an unwavering eye on how we can minimize our impact on the planet from product and packaging innovations to our efforts to reduce waste and increase efficiencies. All of these important efforts continue to be possible because of Wrigley s incredible business performance providing quality products that brighten everyone s day. This summary gives you an opportunity to learn how our global team puts our principles into action around the world and in many different ways. And on behalf of our team, I am pleased to share this with you. Sincerely, Martin Radvan Wrigley President 2

3 Performance We can t make a difference in the world if we don t sustain our own business. Our performance has an impact on the economy and the quality of life of the communities where we do business through taxes, community involvement and job creation. Increasing the quality, safety and efficiency of our operations keeps lifting our business to new heights, and the long-term success of our brands affords us the freedom to forge ahead with an uplifting vision of the future. Who We Are Wherever you find Wrigley, you find smiles from the long-lasting flavor of DOUBLEMINT, EXTRA, ORBIT and 5 chewing gums to the sweet taste of SKITTLES and STARBURST candies and the fresh burst of ALTOIDS and LIFE SAVERS mints. We re headquartered in Chicago, Illinois, U.S., and operate 102 sites around the world. We have more than 16,000 associates in 40 nations who, together, are dedicated to bringing simple pleasures to consumers in 180 countries worldwide. 3 3

4 W R I G L E Y : P R I N C I P L E S I N A C T I O N 2billion- dollar global brands Our Global Brands Two billion-dollar (USD) global brands EXTRA and ORBIT 41 brands in total, including three ALTOIDS, JUICY FRUIT, SPEARMINT that are more than 100 years old 41brands three brands 100+ years old 4

5 Innovation In order for us to make a positive contribution to the well-being of people and the planet, it s critical that we keep growing our business. A key component to long-term growth is our continued focus on innovation a commitment shared across all functions of the business. This means finding more efficient means of production, developing break-through packaging formats and identifying new ways to reach our consumers like our unique social and digital media initiatives. Quality Products Delivering quality products is our top priority, and we ll stop at nothing to make sure we re providing the very best for our consumers. To ensure uncompromising safety of our gum and confections brands, we apply strict quality management systems across all aspects of production, which meet or exceed those outlined by International Food Standard (IFS), a third party audit standard recognized by the Global Food Safety Initiative, and the International Organization for Standardization s (ISO) 22000, 18000, and certifications. 10 Wrigley factories are ISO14001-certified and five also have OHSAS certification Associate Safety Our associates safety is critical, and to make certain we re operating a safe and productive workplace, we ve built environmental, safety and health considerations into every stage of our manufacturing operations. On the factory floor, our associates are dedicated to upholding this commitment, evidenced by exceptional consistency in lost workday records. In 2010, eight Wrigley facilities achieved 1 million or more hours without a lost workday accident. 5

6 W R I G L E Y : P R I N C I P L E S I N A C T I O N People It s not just our fun and popular products that give people a lift in their daily lives. We believe we can and must play a positive role for everyone our business touches. This means making a difference by encouraging diversity and inclusion, providing volunteer opportunities for our associates, developing oral care education programs to advance the health of local communities and through philanthropy with a real impact. associates around the world donated 5,500 hours with local organizations Associate Volunteerism Wrigley associates are passionate about giving back, and we have unique programs that allow them to do just that. Our associates use their time and talent to keep their communities strong, which builds stronger team and a stronger business. As part of the Mars Volunteer Program (MVP), for example, in one month our associates around the world donated 5,500 hours with local organizations cleaning and greening their communities and brightening the lives of countless individuals. 6

7 Advancing Oral Care For more than 25 years, we ve supported independent, clinical research into the oral care benefits of chewing sugar-free gum. In fact, we pioneered much of the research that s been critical in establishing gum s role in the oral-care routine, which played a significant part in the positive opinions recently issued by the European Food Safety Authority (EFSA). Today, leading dental associations in 22 countries, as well as the FDI World Dental Federation, support the oral care benefits of chewing sugar free gum. Wrigley Oral Healthcare Program A key element of our commitment to oral care is helping professionals and consumers better understand the role of sugar-free gum in a regular oral-care routine. Our Wrigley Oral Healthcare program, launched in Germany in 1989 and now operating in 47 countries, aims to promote better oral health among local communities. Wrigley Oral Healthcare program operates in 47 countries 7

8 W R I G L E Y : P R I N C I P L E S I N A C T I O N Giving Back The Wrigley Company Foundation has awarded more than $50 million USD since its establishment in The mission of the Foundation is to improve the health of people and our planet through initiatives focused on oral health, environmental stewardship, and local needs that ensure a healthy community. $ awarded more than 50 million since 1987 A $3 million USD grant to Save the Children will provide a new school health program that will transform the lives of thousands of students. The grant will help provide oral health, nutrition and hygiene care for 273,000 students in 480 schools across China, Kenya, Philippines, Vietnam, Indonesia and Tajikistan. 273,000 students impacted 8

9 Planet From the way we source our ingredients, to how we fuel our factories and package our products, we are mindful of our impact on the world around us. Our global sustainability efforts focus on the four areas where we believe we can make the biggest impact: our operations, packaging, products and culture. Our Operations, Manufacturing & Logistics We always look to reduce the impact of our operations by using less energy, reducing our carbon footprint, and taking a conservationist approach to water and waste. Across Mars, we re developing an approach for our operations that aims to eliminate energy use and greenhouse gas emissions, to minimize our impact on water quality and availability and to mitigate the impacts of waste creation. We call this our Sustainable in a Generation (SiG) program. 39

10 W R I G L E Y C O M P A N Y F O U N D A T I O N commit to 25 % reduction in energy and water use by 2015 We ve set short-term targets to keep us on track, including 25 percent reduction (from a 2007 baseline) for energy and water use and zero waste to landfill by So far, we re making steady progress exceeding our annual waste target due in large part to advanced recycling efforts in the majority of our facilities. However, we have gaps to fill in order to meet our water target, and we have more work to do in reducing energy consumption Results 2010 Target 2015 Target (% change vs. 2007) (% change vs. 2007) (% change vs. 2007) Energy (TJ) -5% -10% -25% Greenhouse Gas Emissions (kilotonnes CO 2 ) -2% -10% -25% Water (M 3 ) -8% -10% -25% Waste to Landfill (kilotonnes) -61% -60% Zero to landfill * These figures measure the energy, greenhouse gas emissions, water and waste impact across all Wrigley manufacturing facilities. In 2010, we absorbed three factories from Mars, Incorporated Scoresby, Australia; Monterrey, Mexico; and Porici, Czech Republic. Given this, our reduction figures from 2007, 2008 and 2009 have been adjusted to include the footprint of these factories. 10

11 Packaging, Innovation & Sourcing Packaging is a high-profile component of a consumer s experience it enables the safe transportation of our product, identifies our brands and provides consumers with important information. However, packaging also uses material, and we need to find solutions that allow us to deliver our product while lowering the impact of those materials on the environment. A critical first step has been the recent implementation of an automated materials tracking system, which provides our packaging innovation team with a real-time snapshot of what materials we re using and where. With this knowledge, we re able to gain a better understanding of the local footprint drivers and enable us to make more effective changes. Our goal is 10 % reduction in packaging weights by 2015 (from 2007 baseline) Product Innovation & Sourcing We re attuned to the environmental impact we have in sourcing, so we re exploring the impact our products have on the environment and our consumers, sourcing the best ingredients and partnering with those who share our commitment to a sustainable future. Through the Mint Industry Research Council, we re working to advance the sustainable farming practices of mint a critical ingredient in many of our gum and mint products. The improper disposal of gum is one of our most pressing sustainability challenges, and we know that the only way to truly eliminate the issue is for people to change their behavior. However, we re also tackling the issue from a product development point-of-view. In fact, our Innovation team s number one priority is to develop a gum that is easier to remove if irresponsibly tossed on the street or sidewalk. 11

12 W R I G L E Y : P R I N C I P L E S I N A C T I O N Our Culture & Community We re committed to creating a more sustainably-minded culture and promoting responsible behavior among our consumers. It s why we sponsor at-work programs and community awareness programs like our active education programs in Australia, China, Germany, Ireland, the UK and US. Through our associate-driven program Go Green, associates are bringing sustainable practices to life at the workplace, lessening the impact of our daily business operations and redefining what it means to go green. 12

13 Principles In Action: A Summary of our Efforts For more information, visit: Amy Lind Truelsen amy.lind@wrigley.com Wm. Wrigley Jr. Co. All Rights Reserved. Juicy Fruit, Doublemint, Spearmint, Extra, Orbit, 5, Life Savers, Skittles, Starburst, Altoids and all affiliated designs are trademarks of the Wm. Wrigley Jr. Co. or its subsidiaries.