Responsible Sourcing and Distribution 2017
Establishing fair, transparent and trustworthy relationships with reliable and responsible business partners enables our Group to offer products of the highest quality to customers and consumers.
The Group’s focus on ensuring and developing good business practices is not limited to our activities at business unit level but also extends to our suppliers and distributors. Campari Group is increasingly committed to making responsible sourcing an integral part of its processes. Responsible and transparent sourcing from commercial partners, which, in turn, share the same values, is a necessary condition for ensuring high-quality and safe products that create value in local economies. In 2017, the Global Procurement function expanded the number of suppliers under its area of responsibility to include non-product-related suppliers, i.e. the suppliers of materials that are typically not related to the product, with a resulting increase in the number of subscribers to the Supplier Code. It should be noted that, since 2012, the Group has undertaken to provide its suppliers with the Supplier Code, with the requirement that they subscribe to it. In turn, it is the responsibility of the suppliers who have subscribed to the code to check compliance with said principles in their respective supply chains. The ethical values contained in the Code, which apply to suppliers and their employees, are the same principles that underpin Campari Group’s activities:
A new version of the Supplier Code has been created to bring it in line with the new business environment, and will be published and implemented in 2018. Suppliers will be asked to sign the new code in 2018. Moreover, as already mentioned in the ‘Group policies’ section, the new policy on employees and human rights, based on the UN’s Universal Declaration of Human Rights and the conventions of the International Labour Organization (ILO), now also applies to our commercial partners. The Group’s membership of Sedex (Supplier Ethical Data Exchange) represents a further step forward in the responsible and transparent management of the supply chain. Sedex is the largest shared platform in the world, through which member users report and share their commercial practices in respect of the following four key areas:
- Labour law
- Health and safety
- Business ethics
During the year, the Group’s aim was to primarily involve suppliers of direct materials in the Sedex programme. To this end, these suppliers were asked to register their production sites on the platform and share the most important information about the above key areas. To date, 345 production sites of Product-Related and Non-Product-Related suppliers used by the Group were registered on Sedex, and it is estimated that this number will increase in the next few quarters. With the aim of reducing its environmental impact along the supply chain, Campari Group – other commercial parameters being equal (e.g. competitiveness, quality and availability of materials) – continues to look for local sourcing options.
Sustainable logistics and distribution
Defining a sustainable freight transport system in which all the players involved operate responsibly clearly has a significant environmental impact. In 2017, Campari Group thus continued developing the main innovations it had launched in 2016 in the sustainable distribution of its products, especially in Europe.
The following main aspects should be noted:
The concept of intermodal transport represents a significant opportunity in freight transport thanks to the use of multiple integrated modes of transport. In 2017, intermodal transfers represented 54% of transfers in Europe.
The slight decline on the year before is due to the closure of the main German rail freight line (Rail Freight Corridor 1) in August 2017. As a result of this unforeseen eventuality, the Group had to use alternative ways of transporting freight, notably by road.
Best practice in this area was noted in Latvia, where intermodal transfers rose from 1% to 22%. In Italy, too, the Group continues to choose, wherever possible, intermodal transport as an alternative solution to road freight transport, building on the trend that started in 2016. Around 10.5% of the 6,032 goods transfers were made by intermodal transport. It should be noted that the reduction in road/ship transfers has been offset by greater use of the road/rail solution.
Campari Group continued its partnership with Berger, a particularly innovative operator in the field of sustainable transport and road transport. The Austrian company has a particular fleet of Euro VI vehicles, built using lightweight steel, thereby optimising container loads and enabling two more pallets to be transported than a standard vehicle.
SUSTAINABLE PALLET MANAGEMENT
In 2017, the Group extended its collaboration with the supplier PAKY, a pallet transport company, to include the Netherlands, Switzerland and Italy (central and southern regions). PAKY’s extensive network enables it to recover pallets from unloading bays and transfer them to its own storage facility or one belonging to a customer that is closer, and, at the same time, deliver the same type of pallets from its closest recovery points to our loading bays. In 2017, the number of pallets managed using the ‘PAKY method’ nearly doubled compared to the previous year, rising from 44,900 to 85,025 pallets:
One of the new sustainable logistics activities implemented in 2017 is the Group’s partnership with Mag-Di, an operator in the logistics and integrated services field since 1969. Mag-Di provides goods distribution services that have a low environmental impact in the city centres of the main Italian cities, by means of a proximity hub (goods sorting and warehousing facility near the distribution area) and using electric and bimodal trucks. In the urban centres of Rome (ZTL) and Milan (area C), therefore, Campari Group transports its products using an innovative ecological fleet.