Global Review » Reducing Risk: Landscape Approaches to Sustainable Sourcing

SABMiller Case Study

Kissinger, G. 2013. Full Citation.

"Forward-looking companies must assess the risks of mismanaging this resource nexus, learn to partner outside their comfort zone, and integrate resource-saving initiatives into their long-term business plans. It's the only way we can ensure the long-term security and supply of the resources that our economy and society depend on." - Andy Wales, Global Head of Sustainable Development, SABMiller

The landscape approach is an extension of their vision

As an organization, SABMiller looks to generate “inclusive growth” that spurs economic growth while also stimulating social development. At a landscape level this is philosophy is exemplified through SABMiller’s work in Colombia, among other case studies that are featured in the report.

SABMiller’s operations are underpinned by their “Ten Priorities: One Future” framework for sustainable development that includes the two overarching goals: reducing water use by 25% by 2015 and reducing fossil fuel emissions by  50% by 2020.

The study found that SABMiller's water risk assessment demonstrated very clearly to the company that a landscape approach was the best way to address risks to the business, and also most in keeping with their "Ten Priorities."

SABMiller Value Proposition Diagram

The risks, rationales, modes, and value proposition of the landscape approach for SABMiller. From "SABMiller case study" in Reducing Risk: Landscape Approaches to Sustainable Sourcing.

A key example in the mountains of Colombia

"Water is neither consistently well managed nor appropriately valued globally. This has led to a crucial shared resource becoming a shared risk for governments, businesses and populations across many areas of the world. If this situation doesn't change then conflicts over water rights are inevitable. We believe that collaboration between business, governments and NGOs is the only way to tackle this." - Graham Mackay, Chief Executive, SABMiller

In the Colombian capital of Bogotá, deforestation and degradation for agricultural purposes near the upstream water catchment negatively impacted water quality coming into the city. Declining water quality created additional costs for the Aqueduct and Sewage Company of Bogotá, which was passed on to water users, including SABMiller. Recognizing the solution to escalating costs lay in addressing unsustainable practices in the water catchment, Bavaria, SABMiller's Colombian subsidiary, took to forming public-private partnerships to indentify shared risks and collaborative solutions to address them.

Working with the World Wildlife Fund (WWF) Colombia, The Nature Conservancy, Colombia’s National Parks administration, and the Aqueduct and Sewage Company of Bogotá, Bavaria developed a model to predict the cost of water purification and established a collective fund for stewardship activities to reduce excessive sediment delivery into the Chingaza and Tunjuelo Sumapaz rivers. As a result of the partnership's work, over 2 million tonnes of sediment have been prevented from entering the water catchment saving roughly US$458,000 per year in treatment costs in the supply area and US$3.5 million per year across the entire water supply system. Because of these cost reductions, the Aqueduct and Sewage Company of Bogotá has been passing on these savings to local organizations, including Bavaria, showing that what is good for the environment can also be good for the bottom line.

Full Citation

Kissinger, G., 2013. "SABMiller case study." Reducing Risk: Landscape Approaches to Sustainable Sourcing. Washington, DC. EcoAgriculture Partners, on behalf of the Landscapes for People, Food and Nature Initiative.

Get the Case Study (PDF)

Full Citation

Kissinger, G., 2013. "SABMiller case study." Reducing Risk: Landscape Approaches to Sustainable Sourcing. Washington, DC. EcoAgriculture Partners, on behalf of the Landscapes for People, Food and Nature Initiative.

Questions

For more information please contact one of the Business Working Group co-leaders, Lee Gross at EcoAgriculture Partners (lgross@ecoagriculture.org), John Buchanan at Conservation International (cbuchanan@ci.org) or Edward Millard at Rainforest Alliance (emillard@ra.org) for more information.

Additional Resources

From the Blog

 

Back to the Full Report Page

Co-Organizers

WRI IFAD CI World Agroforestry Centre UNEP FAO Ecoagriculture Partners Ministry of Economic Affairs, Agriculture and Innovation - Netherlands