Wrigley's Environmental, Safety and Health (Esh)
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WM. WRIGLEY JR. COMPANY 2004-2005 ENVIRONMENTAL, SAFETY AND HEALTH REPORT Dedicated to Continuous Improvement WRIGLEY’S ENVIRONMENTAL, SAFETY AND HEALTH (ESH) MISSION Be a responsive organization that integrates environmental, safety and health solutions into the business of making Wrigley products around the globe. Through leadership, innovation, knowledge sharing and effective communication, we will provide a safe workplace that encourages continuous improvement. Welcome to Wrigley’s first environmental, safety and health (ESH) performance report, which provides a snapshot of our performance for the 2004 and 2005 calendar years. This report will help you understand how ESH performance is managed at Wrigley, and how it supports our business goals. The safety performance indicators in this report begin to establish baselines for performance measurement in future-year reports. Our goal is to provide additional metrics over time as we continue to collect environmental, safety and health data and standardize our methods for doing so companywide. The metrics-related information relates to our wholly owned manufacturing facilities around the world, but this report does not cover facilities added by acquisition in 2004 and 2005. Inside This Report • Senior Management Message 3 • Integration of ESH into Wrigley Business Strategy 4 • Highlights of Wrigley’s ESH Strategic Business Plan 4 • Global ESH Policy, Organizational Structure and Standards 5 • A Commitment to Associates and Community Safety 9 • Environmental Performance 10 About Wrigley Headquartered in the historic Wrigley Building in downtown Chicago, Illinois, U.S., the Wm. Wrigley Jr. Company employs nearly 15,000 associates, and manufactures products in 24 facilities in 14 countries around the world. The Wm. Wrigley Jr. Company is a recognized leader in confections with a wide range of product offerings including gum, mints, hard and chewy candies, and lollipops. The Company has global sales in excess of $4 billion and distributes its world-famous brands in more than 180 countries. Three of these brands – Wrigley’s Spearmint®, Juicy Fruit®, and Altoids® – have heritages stretching back more than a century. Other well-loved brands include Doublemint®, Life Savers®, Big Red®, Boomer®, Pim Pom®, Winterfresh®, Extra®, Freedent®, Hubba Bubba®, Orbit®, Excel®, Creme Savers®, Eclipse®, Airwaves®, Solano®, Sugus®, P.K.®, and Cool Air®`. Please review our annual report for a full listing of facilities and brands, or visit our Web site at www.wrigley.com. SENIOR MANAGEMENT MESSAGE The simple pleasure of chewing gum or savoring a confection is made possible through a complex set of operations, hard work and the use of natural resources. Conducting our business in a socially responsible fashion means that every Wrigley associate must work toward a safe, healthy and secure workplace, and act with respect for the community and environment. To help fulfill our mission, Wrigley employs a global policy, team and strategy dedicated to the continuous improvement of our ESH performance. In recent years, we have become increasingly proactive and systematic in our management of ESH performance. We have learned that striving for ESH excellence not only benefits society, but it also enhances Wrigley’s ability to compete in the global marketplace by increasing productivity, reducing absenteeism, costs and liabilities, and encouraging communities to welcome our facilities and products. It also helps our global facilities to better anticipate and respond to regulatory changes around the world. Foremost, it’s a way of doing business that’s integral to our company’s vision of “Wrigley Brands Woven Into the Fabric of Everyday Life Around the World.” As you read this report, you'll find examples of our global commitment to care for the environment, our responsibility to protect the safety and well-being of our associates and a continuous focus on the advancement of our environmental, safety and health programs and performance. Duke Petrovich Senior Vice President and Chief Administrative Officer Duke Petrovich Senior Vice President and Chief Administrative Officer Doing business in a responsible manner brings value to people, the ‘‘ environment and our company. Duke Petrovich ’’ 3 INTEGRATION OF ESH INTO WRIGLEY BUSINESS STRATEGY Designed to successfully implement the global ESH Policy, our global ESH Strategic Business Plan embraces the philosophy of continuous improvement based on three key principles: Do It! We will continually increase our efforts to improve ESH performance and create a working environment that is comfortable and free from recognized hazards, and that minimizes our impact on the environment. Measure It! We will use systematic methods to measure our performance against our ESH Strategic Business Plan. Communicate It! We will communicate on a regular basis regarding our ESH programs and performance, and engage in open dialog with both internal and external stakeholders with the aim of soliciting feedback to improve performance. The Wrigley ESH Strategic Business Plan supports and advances Wrigley’s overall business strategy. ESH contributes to Wrigley’s ambitious growth goals in many ways. Through involvement in front-end planning and process innovation, we support the development and manufacture of new products. For example, pellet gums require significantly more water to produce than traditional stick gums. ESH’s efforts to reduce water usage and recycle wastewater have helped us to cost-effectively satisfy customer demand for these products. Sound ESH management helps Wrigley expand into new geographies by helping to ensure compliance with all local safety and environmental laws, and by engaging communities in ESH initiatives. When considering whether to acquire real estate, we factor in the results of the environmental due diligence. If the acquisition closes, the ESH Team assists the new facility in adapting Wrigley’s ESH Standards. ESH also helps Wrigley provide the highest quality products at the lowest possible cost in many ways. The integration of ESH management systems with quality management systems enables us to manufacture and deliver the best product. Our efforts and dedication to associate safety and health result in increased productivity, reduced absenteeism and lower liabilities. Our programs to reduce energy, natural resource use and waste improve our company’s bottom line. Finally, ESH assists in the corporate goal of developing our people by stressing training and encouraging membership in a variety of peer-learning organizations. HIGHLIGHTS OF WRIGLEY’S ESH STRATEGIC BUSINESS PLAN Wrigley’s ESH Strategic Business Plan is a dynamic document that accommodates evolving issues. Generally speaking, the plan charges our ESH Team to: • Provide ESH information, communication and aid to key decision makers in other critical business areas. • Improve the work environment to improve production efficiency, reduce workplace injury, lost time and absenteeism and create a more desirable place to work. • Develop and maintain an ESH Metrics System to measure facility performance and to show the true costs of ESH impacts for ease of budgeting. • Build solid relationships with our key internal customers and local ESH associates. 4 • Develop the skills of our local ESH associates. • Build shareholder value by helping Wrigley to manage our business in an ethical, socially responsible manner. In addition to further integrating ESH into Wrigley’s overall business strategy, our corporate ESH organization also aligned with the company’s Lean Manufacturing strategy in 2005. Lean Manufacturing is an operations-focused strategy to improve quality, increase efficiencies and lower costs companywide. During the reporting period, the ESH organization continued to formalize an ESH component for the system. GLOBAL ESH POLICY, ORGANIZATIONAL STRUCTURE AND STANDARDS Guiding Continuous Improvement: The Global ESH Policy Based on Wrigley’s ESH Mission, our global ESH Policy aligns directly with the cornerstones of Wrigley’s Code of Business Conduct: innovation, ethics, communication and respect for people. We implement this Policy through our global ESH organization, standards and guidelines, and the ESH Strategic Business Plan. Companywide and facility-level programs that address safety, resource and energy usage, waste reduction and other issues, are derived from these guiding principles and documents. Wrigley’s Global ESH Policy This Policy applies to the Wm. Wrigley Jr. Company including its domestic and international associated companies and operations. As responsible members of the Wrigley Team, we recognize the need to conduct all of our activities in a manner that seeks to protect the well-being of the environment, our associates and others, including contractors, visitors and our communities, who may be affected by our processes or operations. Specifically, we commit to: 1. Comply with all applicable environmental, safety and health laws and regulations. 2. Establish and maintain a safe and healthy workplace for all those who we employ. 3. Continuously improve our environmental, safety and health performance through the implementation of internal initiatives, goals, programs, policies and procedures and the adoption of proven best practices. 4. Ensure through effective communication, that all of our associates understand the impact that their actions can have on the environment, their own safety and the safety of others. 5. Integrate environmental, safety and health considerations into