“More than 50 percent of our shareholders are farmers. They have welcomed Mars’ encouragement to conduct additional quality checks and use good agricultural practices. These measures ensure that Mars gets high quality tomatoes that have a reduced impact on the environment. And they increase our confidence that we are producing the highest quality and safest tomatoes possible."
Antonio Casana,
Managing Director,
Solana SpA Maccastorma (tomato supplier)
The producers we buy from range from multinational corporations to small farming cooperatives. When selecting new supply partners we assess factors such as capacity, quality, cost and supplier diversity. We also increasingly consider suppliers’ commitment to more environmentally sound practices and respect for their workers and the communities where they operate.
In 2011, we standardized our supplier code of conduct, setting globally consistent criteria for selecting and assessing the companies we source from. Once fully implemented, this will be the first set of consistent global sourcing standards for all our business segments. We are rolling it out across the company, beginning with segments and regions where it makes the most strategic sense to our business. The code applies to companies that directly supply Mars with raw materials, packaging materials, co-manufacturing, and indirect materials or services such as office supplies or advertising support.
Building on an approach that Wrigley has been developing since 2009 and with support from independent risk management experts Maplecroft, we are introducing a formal supply chain risk-management process based on supplier elements such as geography, material and volume. Using the results, we will focus on suppliers who pose a higher risk of violating our supplier code of conduct: providing training programs; conducting on-site announced and unannounced audits; measuring their progress through corrective action plans; and recognizing continuous improvement. We will also work with them to address any issues identified, using system-gap assessments and other means of improvement. Internally, we are educating Associates in responsible sourcing by training those in commercial roles and related functional areas, introducing several required courses through Mars University and including content within established internal communications forums. Associates who fail to meet Mars' responsible sourcing standards as set out in the Supplier Code of Conduct will be subject to appropriate corrective action in accordance with company policies and procedures and applicable laws and regulations.
Prior to formalizing our approach, we conducted a preliminary risk assessment that evaluated both traditional supply chain as well as sustainability risks. As part of this process, we assessed 32,525 suppliers across Mars segments in 2010.
An additional component of our responsible-sourcing program is the PROGramme for RESponsible Sourcing (PROGRESS), a group of 24 industry partners working together to develop responsible-sourcing practices and sustainable-production systems. PROGRESS uses the Supplier Ethical Data Exchange (Sedex), a secure database for companies to store and share ethical information about suppliers. This approach creates access to information about suppliers and reduces the time suppliers spend responding to similar information requests.
