Keurig Presentation Strategic Sustainability

STRATEGIC SUSTAINABILITY

AUDIT FOR

KEURIG

Team 2:

William Allen, Alicia Anderson, Brandi Borman, Patrick

Dupuis, Ariel Jackson, Steven Morton, Melissa Strle

MBA 6000

November 16, 2015

KEURIG GREEN MOUNTAIN INC.

• 1981: Began in Vermont, USA as Green Mountain

Coffee

• Transitioned into Green Mountain Coffee Roasters

• 1993: 2 engineers approached company to invest in

a single cup brewing system - becomes Keurig

• 1997: K-Cup portion packs available

• Tremendous Growth:

– 2000: 84 million Net Sales

– 2014: 4.71 billion Net Sales

AGENDA: SUSTAINABILITY AT KEURIG

• Audited Keurig through the following dimensions:

– Governance

– Economics

– Technology

– Environment

– Social and Cultural Policy

– Community Engagement

• Conclusion

• Questions

GOVERNANCE

• Vision

“We create the ultimate beverage

experience in every life we touch from

source to cup – transforming the way

the world understands business.”

GOVERNANCE

• Commitment to Stakeholders

• Sustainability Committee

• Goals

• Policies

• Programs

GOVERNANCE

• Supplier Requirements

• Conflict minerals

• CA in supply chains

• Code of Conduct

• Reporting

GOVERNANCE

• Employees

• Ethics

• Giving Back

• Communication

ECONOMICS

• Greenwashing to Sustainability

• Transparency

• ROI

• Sourcing and Supply Chain

Management

ECONOMICS

• Economic Contribution to

Communities

• Employees

• Farmers – Coffee Rust and Fair Trade

• Risk Management

• Global Reporting Initiative

ENVIRONMENTAL SUSTAINABILITY

• Engage 1 million people in our supply

chains to significantly improve their

livelihoods including water security and

climate resilience.

• Balance the water used in our 2020

brewed beverage volume of all our

beverages, ounce for ounce.

383.6

thousand

reached

In

development


• Reduce life-cycle GHG emissions of brewed

beverages by 25% vs. 2012 baseline.

• Achieve zero waste-to-landfill at our

owned and operated manufacturing and

distribution facilities.

• 100% of K-Cup ® packs will be recyclable.

Achieved

86%

In

development


Still Room for Improvement at Keurig:

In

development

TECHNOLOGY

• Information Technology

• Carbon Footprint Reducing Technology

• Resource Reducing Technology

RESEARCH & DEVELOPMENT

Figure 2: R&D expenses of three leading companies in the coffee industry, (Goulding, Bonafé, Bertrand, 2015),

SOCIAL & CULTURAL SUSTAINABILITY

• Health & Wellness

• Organizational Health Index (OHI)

• Compensation & Benefits

• Safety Training & Prevention

• Employee Development

• Leadership & Ambassador Programs

• Source Trips


• Philanthropy

• Coffee Kids & FomCafe

• Coffee Farmer Resilience Fund

• Coffeelands Food Security Coalition

• Stakeholders

• External Advisory Panel (EAP)

• Stakeholder Gatherings


• Human Rights

• Responsible Sourcing Supplier Guidelines

• Supplier Workplace Assessments

• Code of Conduct

• Minority Representation

COMMUNITY ENGAGEMENT

• Supply Chain outreach

• CAFE program

• Community investment program

– Water Stewardship

– Sustainable food system

SUSTAINABILITY AUDIT SCALE

CONCLUSION

PAST – PRESENT – FUTURE:

QUESTIONS?

References

Annual Reports and Proxies. (n.d.). Keurig Green Mountain. Retrieved November 4, 2015 from

http://investor.keuriggreenmountain.com/annuals-proxies.cfm

Athavaley, A. (2014, December 23). Keurig recalls 7.2 mln single-serve brewers. Retrieved

November 3, 2015, from http://www.reuters.com/article/2014/12/23/keurig-green-recall-

idUSL3N0U72YP20141223#jTtpreImjOsYUlUY.97

Berns, M., Townend, A., Khayat, Z., Balagopal, B., Reeves, M., Hopkins, M., & Kruschwitz, N.

(2009). The business of sustainability. The Boston Consulting Group Inc. Retrieved November 6, 2015

from

http://login.ufred.ca/pluginfile.php/83892/mod_page/content/24/The%20Business%20of%20Sustainabi

lity%20-%20report%20including%20audit.pdf

Biro, M. (2014, January 19). Happy employees = hefty profits. Forbes. Retrieved November 5,

2015 from http://www.forbes.com/sites/meghanbiro/2014/01/19/happy-employees-hefty-profits/

References

Brush, M. (2015, February 3). Insider buys signal Keurig is on to something big. Retrieved

November 2, 2015, from http://www.marketwatch.com/story/join-keurig-executives-and-

buy-the-coffee-machine-makers-stock-2015-02-03

Counter, R. (2015, January 27). Coffee pods: The new eco-villain. Macleans. Retrieved

November 5, 2015 from http://www.macleans.ca/society/life/coffee-pods-the-new-eco-

villain/

Goulding, C. Bonafé, A. Bertrand, L. (2015). The R&D Tax Credit Aspects of Coffee. Retrieved

November 4, 2015 from http://www.rdtaxsavers.com/articles/Coffee

Green Mountain Coffee Roasters. (n.d.). Retrieved November 2, 2015 from

http://www.cdccoffee.com/green-mountain-coffee-roasters-history.html

References

Green Mountain Coffee Roasters Inc. (14 Jan 2013). Green Mountain Coffee Roasters, Inc.

Evolves Corporate Sustainability Strategy. Press Release. Retrieved from:

http://investor.gmcr.com/common/mobile/iphone/releasedetail.cfm?ReleaseID=733327&CompanyID=

GMCR&mobileid=

Howard, P., & Jaffee, D. (2013). Tensions between firm size and sustainability goals: Fair trade

coffee in the united states. Sustainability, 5(1), 72-89. doi:10.3390/su5010072

Keurig Canada (2015). Promoting Employee Engagement. Retrieved November 15, 2015 from,

http://corp.keurig.ca/en-CA/Sustainability/canada/ThrivingPeopleAndCommunities

PromoteEmployeeEngagement.aspx

Keurig Green Mountain. (2015). Retrieved November 6, 2015 from

http://www.keuriggreenmountain.com/

References

Keurig Green Mountain Annual Report. (2014). Retrieved November 5, 2015 from

http://files.shareholder.com/downloads/GMCR/1015109623x0x800137/17B2E475-5C40-47AE-A563-

C65C86B282DF/2014_Keurig_Annual_Report.pdf

Keurig Green Mountain Code of Conduct. (2014). Retrieved November 2, 2015 from

http://files.shareholder.com/downloads/GMCR/1015109623x0x383775/36DBB352-934F-4E7B-9001-

9D0C581A6410/GMCR_WebDoc_7206.pdf

Keurig Green Mountain Sustainability Charter. (2014). Retrieved October 26, 2015 from

http://files.shareholder.com/downloads/GMCR/1015109623x0x367363/755AAA31-C469-4D85-816D-

F356D1F51D9F/GMCR_WebDoc_6985.pdf

Keurig Green Mountain Sustainability Report. (2012). Retrieved November 3, 2015 from

http://www.keuriggreenmountain.com/~/media/Sustainability/PDF/ReportsDisclosures/SustainabilityRe

portFY12.ashx

References


http://www.keuriggreenmountain.com/en/Sustainability/ReportsAndDisclosures/Reports.asp

x


http://www.keuriggreenmountain.com/~/media/Sustainability/PDF/ReportsDisclosures/Fisca

l2013SustainabilityReportPDF.ashx

Keurig Green Mountain Sustainability Reports. (2015). Retrieved November 5, 2015 from

http://www.keuriggreenmountain.com/en/Sustainability/ReportsAndDisclosures/Reports.asp

x

Kimberley, N. (2014). Green Mountain Coffee Strategy 2014. Retrieved November 3, 2015 from

http://www.slideshare.net/Foodsfluidsandbeyond/gmcr-cagny-2014

References

McDermid, B. (2015, May 8). Keurig backs down on K-Cup coffee pod strategy. CBC News.

Retrieved November 8, 2015 from http://www.cbc.ca/news/business/keurig-backs-down-on-

k-cup-coffee-pod-strategy-1.3066326

Our Company. (n.d.). Keurig Green Mountain. Retrieved November 4, 2015 from

http://www.keuriggreenmountain.com/en/OurCompany/Overview.aspx

Our Strategy. (n.d.). Keurig green mountain. Retrieved November 8, 2015 from

http://www.keuriggreenmountain.com/en/Sustainability/SustainabilityOverview/OurStrategy

.aspx

Our Values. (n.d.). Keurig green mountain. Retrieved November 4, 2014 from

http://www.keuriggreenmountain.com/en/OurCompany/OurValues.aspx

References

Oxender, M. (2014, April 3). CSRwire Talkback. Retrieved November 2, 2015, from

http://www.csrwire.com/blog/posts/1289-sustainability-ambitions-keurig-green-mountain-commits-to-

a-recyclable-k-cup-reg-pack-by-2020

Recycle your Keurig Vue packs with Preserve Gimme 5. (n.d.). Retrieved November 3, 2015,

from http://vuerecycling.preserveproducts.com/site/program/home

Supplier Guidelines. (n.d.). Keurig green mountain. Retrieved November 2, 2015 from

http://www.keuriggreenmountain.com/en/Sustainability/ResilientSupplyChain/SupplierGuidelines.aspx

Workplace Excellence and Sustainability. (n.d.). Keurig Green Mountain. Retrieved November

4, 2015 from http://corp.keurig.ca/en-CA/JobSeekers/WhyWorkHere

/WorkplaceExcellenceAndSustainability.aspx

WSSD. (2015). Key Resources. Retrieved November 3, 2015 from

http://www.who.int/wssd/resources/en/

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