Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges
Principle 8: Business should undertake initiatives to promote greater environmental responsibility
Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies

We fully support all of the Global Compact’s Principles related to the environment.

Commitment to the Precautionary Principle

The Precautionary Principle states that “[w]here there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.” Examples of our commitment to the Precautionary Principle include:

• Our commitment to the reduction of solid waste and reduction of energy consumption, both on an intensity basis.
  • In fiscal 2008, we reduced our solid waste metric by 6.5%. Our current waste reduction goal is a 2% reduction in fiscal 2009, measured as tons of waste/$1,000,000 of revenue. 
  • In fiscal 2008, we reduced our energy use metric by 13.5%. Our current energy use reduction goal is 10% in fiscal 2009, measured as therms/$1,000 of revenue. 
• Growth in the sales of our sustainably sourced coffees. Our sales of Fair Trade Certified™ organic coffees has grown to represent over 28% of total pounds shipped in fiscal 2008 – these coffees provide fair wages to the growers and have a lighter impact on the environment. 
• In fiscal 2008, we commissioned product life-cycle analyses of our three main package types to quantify their environmental impact and help us drive more environmentally responsible innovation in our processes (i.e. supply-chain logistics, manufacturing, packaging, and/or transport).
• Our commitment to designing a new enterprise-wide initiative focused on climate change in fiscal 2009. 
• Our current greenhouse gas offset program, which offsets 100% of our greenhouse gas emissions through the purchase of renewable energy certificates (“RECs”). Our REC purchases support the development of green energy infrastructure, such as wind farms and methane recapture facilities. 
• The installation of a 100 kW solar array on the roof of our Waterbury, Vermont, Distribution Center. On a bright, sunny day this solar array is capable of generating enough electricity to supply more than half of the Waterbury Distribution Center’s average demand. 
• The installation of a 10,000 gallon biodiesel fueling tank at our Waterbury, Vermont, Distribution Center. Today, all of our Waterbury-based delivery fleet runs on biodiesel.
• Our ongoing research into alternative packaging materials for our K-Cups®. 
• Our introduction of both hot and cold “to-go” cups made with renewable corn-based materials. 
• Our introduction of packaging film made with over 19% renewable corn-based materials. 
• The replacement of light fixtures in our Distribution Center and production plant with high-efficiency lamps.

For more information see Protecting The Environment.

Vendor Expectations

In fiscal 2007, we began developing a Set of Vendor Expectations. The scope of these guidelines included overall legal compliance, forced labor, child labor, wages and benefits, hours of work, freedom of association, discrimination and abuse, health and safety, and environmental responsibility.

In fiscal 2008, we began sharing, and measuring compliance with these guidelines. For measuring compliance, we created a set of tools, including self-assessments, surveys, on-site assessments by GMCR staff, and commissioned audits of vendor facilities.

We tested these tools by auditing our own Waterbury, VT, facility. We performed our first supplier audit in September 2008. For the first audit, we chose the firm that manufactures all our Keurig® Brewers – the Simatelex organization. They operate three factories in Shenzhen, in the Guangdong province of China. We audited one factory – the Xin Fan facility. We will receive the final audit report in fiscal 2009 and will work with Simatelex to understand and act on the findings in that report.

Working together with our supply chain, we can all become better citizens and more sustainable businesses by setting clear expectations, and identifying and correcting issues when they arise.

For more information see Set of Vendor Expectations.

Fair Trade Certified™ Coffees

Additionally, we support the Global Compact’s Environmental Principles in coffee-growing communities through our support for and investment in Fair Trade Certified™ coffees. The Fair Trade certification process sets requirements for assessing, mitigating, and minimizing the environmental impact of the producing organization’s members, including:

• The prohibition of the gathering of protected plant species; 
• The sustainability of all wild harvesting operations; 
• No usage of prohibited agrochemicals; 
• Proper and safe use, handling, and storage of permitted agrochemicals; 
• Safe disposal processes for hazardous waste; 
• Proper use of organic waste; and 
• Procedures in place designed to reduce or prevent soil erosion, enhance soil fertility and soil structure, and ensure proper and efficient irrigation.

For more information see Building Demand for Sustainable Products.