AIM-PROGRESS PROGramme for RESponsible Sourcing Welcome! Facilators: Chris Campolongo - Director of Supply Chain, Sustainability and Compliance at MWV Donna Westerman - VP of Responsible Sourcing, Mars, Inc. Who are we? ►Global forum of fast moving consumer goods manufacturers and their common suppliers assembled to enable & promote responsible sourcing practices ►Providing a collaborative mechanism to more effectively assure and move beyond supply chain compliance; – by deploying leading practices and raising awareness throughout the supply chain – increasing efficiency by sharing pre-competitive data Where “an audit for one is an audit for all ” – by seeking alignment with other similar initiatives Our mission: “Positively impacting people’s lives through our combined leadership of robust responsible sourcing practices throughout our supply chains” Who’s involved? A range of FMCG companies and suppliers, with AIM and the GMA “One of the branded goods industry's most successful initiatives which is now operating with real scale. Diageo is proud to be a founder member.” Andrew Morgan, President New Businesses DIAGEO, Former President of AIM Our objectives: ►Building member capability within our own organisations All member organisations are competent and executing robust responsible sourcing programs. ►Effectively assuring compliance in our supply chains Ensuring increasing supplier compliance as expectations rise through having in place increasingly aligned practices, standards and metrics. ►Driving continuous improvement in our supply chains demonstrating activities of responsible sourcing which go beyond simple compliance with local law. “PepsiCo is pleased to be a member of AIM-PROGRESS because the organization provides a worthwhile forum to exchange ideas, learn from corporate members and creates a setting to work alongside peers on shared challenges.” Mary White, Director of Responsible Sourcing, PepsiCo Our opportunity As individual companies, we are all asking our suppliers for similar assurances, but… ►Using different words in questions, ►Against similar, but different standards, ►On different systems, ►With different audit protocols ►in isolation, without finding synergy with like efforts ►Leading to confusion and complexity and unnecessary duplication of audits In which areas? The Four Pillars of Responsible Sourcing ► Human Rights & Labour Standards • Defined by UNHR, ILO Conventions, local law and other norms ► Health and Safety • Occupational H&S and Process Safety, as defined by local law and buyer requirements ► Environmental Management • Concerned with site operations, i.e. water, energy, waste, and emission controls, etc. ( i.e. “the HOW”) • Not environmental impact of products (i.e. “the WHAT) ► Business Integrity/Practices • Compliant & ethical basis to our responsible sourcing practices, in particular move towards elimination of bribery & corruption. • Aligned to the 10 Principles of the UN Global Compact Responsible Sourcing Cycle – Commonalities on the supplier assessment journey Commonly used risk assessment Initial Risk Assessment indicators Continuous Common improvement Supplier & Supplier formats Assessment Capability Common Building include Sedex Synergies supplier towards and EcoVadis common training events SAQs methods & data Sharing of Corrective Further Risk methodologies Action Plan Assessment Determined by for corrective individual action plans. companies Audit Companies agree to recognise audits done on behalf of other customers. Audits can also be shared using online platforms. Governance structure Mandate AIM BOARD Recommendation AIM- PROGRESS Mandate LEADERSH COMMUNIC IP TEAM Recommendation ATIONS Recommendation ADVISORY Consultation BOARD Mandate Recommendation Mandate Recommendation SUPPLIER MUTUAL CAPABILIT BUSINESS HUMAN ENVIRONME RECOGNI Y INTEGRITY RIGHTS NT TION BUILDING
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