How Molson Coors is improving supplier performance and reporting with Sedex
The benefits Sedex brings to us are being able to have external third-party validation in terms of understanding our supply chain and being able to make measurable goals within that. And to track and improve upon our processes.
Since joining Sedex, Molson Coors has enhanced their ESG reporting to investors and improved supplier engagement and performance.
Molson Coors is the fifth-largest beverage company worldwide, operating in 100 countries. They are primarily known for their beers, with popular brands like Coors Light, Miller Lite and Carling, and also are home to many non-alcoholic beverages. To compete in a global market, Molson Coors believe they need strict standards for themselves and the suppliers they source from. They take pride in acting ethically, responsibly and in compliance with the law.
Why did Molson Coors join Sedex?
Molson Coors joined Sedex to understand how they could source more responsibly and ensure their supply chain followed ethical and sustainable business practices.
They wanted to gain greater visibility into their suppliers’ operations and instigate conversations around sustainability risks and mitigation plans.
How Molson Coors is using Sedex to improve supplier performance and reporting
Molson Coors uses the Sedex platform as part of their procurement management process to better understand the risks of their supply and to ensure their suppliers comply with their high business standards for operating ethically and sustainably.
Sedex’s Management Controls Score allows Molson Coors to easily report on their suppliers’ answers to the Self-Assessment Questionnaire (SAQ) from five key areas of risk:
- Labor standards
- Health and safety
- Business ethics
- Supply chain management
“The benefits Sedex brings to us are being able to have external third-party validation in terms of understanding our supply chain and being able to make measurable goals within that. And to track and improve upon our processes.”
Improved SAQ data and supplier engagement
According to Melinda So, Molson Coors’ Procurement COE Manager for Supplier Diversity and Responsible Sourcing, Sedex’s Management Controls Score became the best way for them to view and share sustainability performance and help improve business practices. They also expanded their area of focus by going from a small number of questions to focusing on all areas of risk from the SAQ data they receive back from their suppliers.
When they share information from the Management Controls Score with their suppliers, they analyze the areas with the lowest scores so that their suppliers can learn how to improve their overall business practices and achieve a higher score in those areas. Providing consistent scores with actionable information is a huge driver for their program.
An increased focus on ESG reporting
In addition to improving supplier performance, Molson Coors uses the Management Controls Score to help with their company’s increased focus on reporting supply chain performance and activities to investors and analysts. Molson Coors uses the Management Controls scores to contribute to the ESG and responsible sourcing score on their overall supplier scorecard, which they share with stakeholders. With a growing emphasis on ESG reporting, they can ensure that they have essential monitoring in place for their suppliers with Sedex.
“The major benefit we have seen is that by sharing this information with all of our suppliers, they are more aware of our interest in their business practices, especially what they are doing to manage and mitigate potential risks.”