Reducing Risk: Landscape Approaches to Sustainable Sourcing – SABMiller Case Study

Overview

“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 professes to look 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.

Ten Priorities

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.”

SAB Miller’s Business Water Risk Assessment

Lesson Learned: Using a business risk assessment approach identifies, quantifies and prioritizes risks, providing the framework for building a business case for addressing water issues. However, some risks are difficult to quantify, such as reputational risks.

Solution: Use a brief qualitative risk assessment to discount risks that are of very little or no importance to the business, or are already being tackled, and then focus the detailed quantification on risks required for the business case.