Strategic Sustainability Audit presentation prepared from the Keurig Strategic Sustainability Audit MBA Team Report.

1. 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

2. 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

3. AGENDA: SUSTAINABILITY AT KEURIG
• Audited Keurig through the following dimensions:
– Governance
– Economics
– Technology
– Environment
– Social and Cultural Policy
– Community Engagement
• Conclusion
• Questions

4. GOVERNANCE
• Vision
“We create the ultimate beverage
experience in every life we touch from
source to cup – transforming the way
the world understands business.”

5. GOVERNANCE
• Commitment to Stakeholders
• Sustainability Committee
• Goals
• Policies
• Programs

6. GOVERNANCE
• Supplier Requirements
• Conflict minerals
• CA in supply chains
• Code of Conduct
• Reporting

7. GOVERNANCE
• Employees
• Ethics
• Giving Back
• Communication

8. ECONOMICS
• Greenwashing to Sustainability
• Transparency
• ROI
• Sourcing and Supply Chain
Management

9. ECONOMICS
• Economic Contribution to
Communities
• Employees
• Farmers – Coffee Rust and Fair Trade
• Risk Management
• Global Reporting Initiative

10. 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

11. ENVIRONMENTAL SUSTAINABILITY
• 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

12. ENVIRONMENTAL SUSTAINABILITY
Still Room for Improvement at Keurig:
In
development

13. TECHNOLOGY
• Information Technology
• Carbon Footprint Reducing Technology
• Resource Reducing Technology

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

15. SOCIAL & CULTURAL SUSTAINABILITY
• Health & Wellness
• Organizational Health Index (OHI)
• Compensation & Benefits
• Safety Training & Prevention
• Employee Development
• Leadership & Ambassador Programs
• Source Trips

16. SOCIAL & CULTURAL SUSTAINABILITY
• Philanthropy
• Coffee Kids & FomCafe
• Coffee Farmer Resilience Fund
• Coffeelands Food Security Coalition
• Stakeholders
• External Advisory Panel (EAP)
• Stakeholder Gatherings

17. SOCIAL & CULTURAL SUSTAINABILITY
• Human Rights
• Responsible Sourcing Supplier Guidelines
• Supplier Workplace Assessments
• Code of Conduct
• Minority Representation

18. COMMUNITY ENGAGEMENT
• Supply Chain outreach
• CAFE program
• Community investment program
– Water Stewardship
– Sustainable food system

19. SUSTAINABILITY AUDIT SCALE

20. CONCLUSION
PAST – PRESENT – FUTURE:

21. QUESTIONS?

22. 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/

23. 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

24. 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/

25. 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

26. References
Keurig Green Mountain Sustainability Report. (2013). Retrieved November 3, 2015 from
http://www.keuriggreenmountain.com/en/Sustainability/ReportsAndDisclosures/Reports.asp
x
Keurig Green Mountain Sustainability Report. (2014). Retrieved November 3, 2015 from
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

27. 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

28. 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/