Context

SABMiller’s businesses spend over $5,700 million with suppliers around the world and support an estimated 1.6 million jobs (in the supply chain, retail and distribution networks). SABMiller recognises the importance of understanding the impacts its procurement activities have on the people and communities involved in the value chain and is committed to understanding its impacts and to ensure that they are positive. In addition to monitoring standards operated by suppliers, companies need to consider the impact of their own buying behaviour on ethical and environmental standards.


Objectives

• Provide a shared vision of SABMiller’s views and future commitments in relation to incorporating environment and social principles into procurement practices.
• Outline a set of Responsible Sourcing Principles that are applicable to our value chains.
• Provide a framework that ensures the sustainable development aspects of supply chain management are incorporated into technical and operational strategies and plans in our operations across the world.

Commitments

• SABMiller is committed to contributing positively to the economic, social and environmental well-being of the communities in its value chain.
• SABMiller is committed to promoting responsible procurement practices. The procurement principles set out below will form a consistent approach across the group but will be operated flexibly to be appropriate for local markets.
• SABMiller is committed to being transparent and open about the issues it faces and how it tackles them.

Defining the Principles

SABMiller group companies will engage with their suppliers of goods and services to promote the following principles, and work towards implementing these principles throughout their supply chains.

Defining the Principles

In the conduct of our business, SABMiller will deal openly and fairly with suppliers, adhering to contract terms.

Working conditions

Policies and procedures for health and safety, as a minimum, meet legal requirements and where these do not exist, are sufficient to protect the well-being of employees.

Employment

Forced or compulsory labour is prohibited. Employees should not be forced into involuntary labour and coercion at work is not acceptable.

Child Labour

In accordance with relevant ILO conventions, children may only be employed in circumstances which fully safeguard them from potential exploitation, which protect them from moral or physical hazard and long term damage to health and which do not disrupt their education.

Wages

Pay will not be lower than that required by local law or, in the absence of a law, the level paid generally within that industry.

Diversity

Whilst being sensitive to cultural differences we expect the development of equal opportunities in employment without discrimination on grounds of race, religion, and gender or any other arbitrary means.

Freedom of association

There should be constructive dialogue between workers and management. Employees shall be free to join lawful associations.

Environment

Suppliers will be aware of and comply with local environmental laws, and show sensitivity to other environmental issues that may impact on either local communities or SABMiller.

There is a need to ensure the right balance in terms of having a consistent approach across the group while at the same time incorporating enough flexibility to allow adoption by individual operations to local conditions.

SABMiller recognises that companies can be in different phases of their development and this means that they will be at different levels of implementation.

The responsible sourcing principles of supply chain management have been developed through a consultative process held with procurement managers in group divisions as well as being informed by external published resources.

Accountability

  The SABMiller Executive Committee (Excom) has overall responsibility for the companies supply chain principles.

  The Global Sourcing Council is responsible for debating the principles and will also champion the collection of company actions plans. The Council will receive support from the group CSR team.

  Future action plans will be agreed by the company board or hub level Excoms.

  The hub procurement manager will be responsible for developing implementation plans and at each hub a responsible procurement champion will be identified.

Saanjhi Unnati: Malt Barley Development Programme

The Background

Catalysing rural development & improving standards of Living

SABMiller India engages with leading global agronomists and agricultural scientists to educate farmers and disseminates correct package of practices for barley cultivation through farmer meetings, personal contacts, providing high quality inputs like seeds, pesticides etc and educates proper usages of these.

• Helps distribute Government certified seeds at a subsidized rate through the Saanjhi-Unnati Centers and even through a unique "Seeds-on-wheels" campaign
• Educating existing barley farmers on best practices to help them improve their quality and yields
• Provides scientific inputs to farmers on issues pertaining to soil testing and agronomic advice
• Procurement at the best price for the right product with proper weighment and on-the-spot payment, thus ensuring better and hassle free return to the farmer

SABMiller India engages with leading global agronomists and agricultural scientists to educate farmers and disseminates correct package of practices for barley cultivation through farmer meetings, personal contacts, providing high quality inputs like seeds, pesticides etc and educates proper usages of these.

Varietal Development Program



Program Figures:

	Year 1- F06	Year 2 - F07	Year 3 - F08	Year 4 – F09	Year5 – F10
No. of Centers	3	6	12	12	15
No. of Farmers Enrolled	1574	2390	6024	6450	8150
Seeds Sold (MT)	165	200	520	648	900
Barley Procured (MT)	1842	7090	9733	15000	18000

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SABMiller India's partnership with smallholder farmers [00:02:09]

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