CONTENTS
About this Report
1
Managing Director’s Message
2
Business Overview
3
Sustainability Strategies & Milestones
7
Beverage Benefits
9
Active Healthy Living
11
Water Stewardship
13
Energy Management & Climate Protection
15
Sustainable Packaging
19
Workplace
21
Community Engagement
25
Achievements & Awards
30
Global Reporting Initiative (GRI) Performance & Index
32
Assurance Statement
34
About this Report
Building on the Swire Beverages’ 2010 Sustainable Development Report,
we are writing this update to cover our progress in 2010-11 on the
sustainability front in accordance with the Global Reporting Initiative (GRI)
3.1 Guidelines. In order to ensure that the content of this report is
comprehensive, accurate and reliable, we have entrusted the Hong Kong
Productivity Council to give independent assurance to confirm that this
report complies with a GRI 3.1 Guidelines “B+” reporting level.
The seven pillars of Live Positively provide the framework for this report,
covering our work and progress on sustainable development in our
business territories – Mainland China, Hong Kong, Taiwan and the U.S.
Through initiatives in the workplace and marketplace, we not only engage
and communicate with our key stakeholders; they are also an important
influence to our business and we welcome their feedback.
1
Swire Beverages’ 2010-11 Sustainable Development Report
Managing Director’s Message
Our Sustainable Journey
Growing our business sustainably has been part of the DNA of Swire,
as we develop our business for over 196 years. We have further
consolidated this into our heritage by embracing Live Positively, our
joint sustainability platform with the Coca-Cola system. We will
continue to grow our business towards our 2020 vision.
This vision is challenging and far-reaching. The journey towards
achieving our commitment under the seven pillars of Live Positively
will be meaningful. It will make us more efficient and innovative whilst
also benefiting our community and the environment. We aspire to
satisfy our consumers with the quality and value they expect in a
sustainable manner. Innovation is a prerequisite for achieving this
objective, with solutions that use less energy and water, adopt more
recyclable and reusable materials and produce less waste. Coupled
with Swire Beverages’ business capabilities and community
partnerships, we strive to make a positive difference in the
communities we live.
Achievements in 2011
I am pleased to share with you the key highlights of our progress in 2011:
World-class recognition: We opened the most environmentalfriendly bottling plant of our company in Luohe, Henan province in
Mainland China. It obtained the LEED Platinum Certification from
the U.S. Green Building Council, signifying a new benchmark for
our environmental standards and for the beverage manufacturing
industry. This is the first LEED Platinum bottling plant within the
worldwide Coca-Cola system.
Progress in renewable energy: We are the first bottler within the
Coca-Cola China system to generate 5% of our total energy needs
from renewable sources – through biomass power generation,
ground source heat pumps and installation of solar heaters in five
of our bottling plants. We will continue to actively explore
opportunities to reduce the use of fossil fuel, and do so in the most
practical and economical way.
Promoting an active, healthy lifestyle: We expanded the Swire
Beverages’ signature event, “Community Walk”, from our
Hangzhou bottler to Nanjing, Guangdong and Xian bottlers,
encouraging active and healthy living among our staff and within
our communities.
Targeting areas of greatest occupational safety concerns: We
introduced a series of road safety programmes that covered 5,000
of our frontline staff. We provided them with helmets and training
in safe driving according to national standards for a safer journey
on the road. With these efforts, our overall employee accident rate
dropped 16% in 2011. We will remain focused in this important
area and promote sustainable and systematic improvements by
imbuing a safety culture in our entire operation, and will extend
the programmes to our suppliers in the years to come.
Challenges Ahead
We as a system work closely with suppliers to reduce the
environmental impact of our business. The introduction of the
PlantBottle™ in the U.S. and Taiwan is truly exciting and
innovative despite a significantly higher cost associated with
this material than traditional PET. On the other hand, closedloop recycled PET (rPET) in Mainland China is far from
reaching critical mass and there are limited points of
production. Although CO2 coolers are more expensive than
the existing models, the good news is that we are mapping
out a critical path for rolling out this environmental-friendly
cooler. It will be 40% more energy efficient for our customers,
and will produce a much reduced global warming effect.
These attempts to cut down on the carbon impact will
continue to receive our attention.
Moving Forward
Our commitment towards sustainable development is
stronger than ever. Our goal is to achieve zero net impact,
particularly in the area of water neutrality, and we never stop
improving ourselves to meet the high expectations of our
stakeholders. We believe each and every one of our
employees has a role to play in Swire’s commitment to
shaping the way value is created for customers, while at the
same time supporting sustainable communities.
We welcome your valuable feedback on our sustainability
efforts. Please write to our Sustainability Team at
sustainability@swirebev.com.
Geoff Cundle
Managing Director
Swire Beverages Limited
Swire Beverages’ 2010-11 Sustainable Development Report
2
Business Overview
Introduction of Swire Beverages
Swire Beverages Limited (“Swire Beverages”) is an operating unit under Swire Pacific Limited (“Swire Pacific”, www.swirepacific.com).
Swire Pacific has a history of 140 years and is listed in Hong Kong with five business divisions, namely Properties, Aviation, Beverages,
Marine Services, and Trading & Industrial.
The Coca-Cola Company has been established for 126 years. The company began the strategic business partnerships with Swire Pacific in
1965 by setting up Swire Beverages, authorising it to manufacture, market and distribute products of The Coca-Cola Company in seven
provinces of Mainland China, Hong Kong, Taiwan and a large part of the Western U.S.
Greater China
The U.S.
(servings)
Change: USA to U.S.
Change:
USA
to U.S.
Change:
USA to
U.S.
Delivering Refreshment
Potential
Potential
Environmental
PotentialEnvironmental
Impacts
Environmental
Impacts
Impacts
3
Swire Beverages’ 2010-11 Sustainable Development Report
Vision, Operation Strategies & Governance
The strategic objective of Swire Beverages is to be a first class provider of non-alcoholic beverages in our developed
and emerging markets. In achieving this, we have employed the following strategies:
• Extending the availability of our beverage brands and improving market execution
• Building secure relationships with customers by providing a valued customer service, and creating values for them
• Maintaining an effective management of revenues
• Ensuring that suppliers provide high quality goods and services in a cost-effective manner
• Attracting, engaging and retaining the best people, making them feel valued and motivating them to give of their best
• Engaging with communities from where we operate, and seeking to reduce the environmental impact of our
operations, focusing particularly on water conservation
Swire Beverages strives to maintain the highest level of corporate governance with transparency and accountability. We are honest and
ethical in carrying out our business. Swire Pacific is the largest shareholder of our company. Our highest governance body is the Swire
Pacific Board of Directors who appoints Mr Geoff Cundle as the Managing Director of Swire Beverages. In addition to administering our
economic performance, the Board oversees broader sustainable development issues through the Group Risk Management Committee
(GRMC). GRMC provides direct governance of various sub-committees and working groups in these areas: Insurance, Human Resources,
Health & Safety, Legal, Information Technology, Sustainability, Environmental Best Practices, Supply Chain Sustainability, Energy and
Enterprise Risk Managements. It also oversees areas that can be collectively categorised as Sustainable Development.
Swire’s Internal Audit department performs audit-accounting for The Swire Group and their business units. It assures that the internal
control systems are properly implemented and running, and that the risks associated with achieving our business objectives are correctly
identified, monitored and managed.
We strictly comply with our Code of Business Conduct and do not make political contributions in any form, anywhere in the world. On
public issues which concern our business, we occasionally lobby governments and inter-governmental bodies, either directly or through
trade associations.
Governance on Procurement & Suppliers
China Bottlers Procurement Consortium (CBPC) is formed with senior leadership representation from bottling groups in Mainland China, i.e.
Swire Beverages, Coca-Cola Bottling Investment Group China, COFCO Coca-Cola Beverages Ltd, Shanghai Shen-Mei Beverage & Food Co
Ltd and Zhuhai Coca-Cola Beverage Co Ltd. The Coca-Cola Company provides technical support and advice to CBPC, who then carries out
central procurement for the above-mentioned bottling groups, selects innovative suppliers and works closely with them to protect the
environment. This will not only bring us more economic benefits, but also help to set up a sustainable supply chain. The Chief Executive Officer,
China of Swire Beverages and the management of the other four bottling groups will take turns to chair the organisation for a term of two years.
In addition, Swire Beverages and all of our suppliers are contractually bound to comply with the “Supplier Guiding Principles” of The
Coca-Cola Company. Suppliers shall report to Swire Beverages at once in the case of potential non-compliance. Otherwise, Swire
Beverages is entitled to terminate the contract and report the case to law-enforcement authorities.
We pursue a corruption-free business. Whenever corruption is found, we will carry out internal investigation and report it to the law-enforcement
authorities concerned.
Organisational Chart of
the Beverages Division
of Swire Pacific Limited
Swire Pacific
Limited
100%
Swire Coca-Cola
Beverages Ltd
Taiwan Branch
100%
100%
Swire Coca-Cola
(S&D) Ltd
Taiwan Branch
100%
Swire Beverages
Holdings Ltd
87.5%
100%
100%
49%
Swire
Coca-Cola HK Ltd
M ain land C h in a
H o ng K o n g
51%
51%
Swire Guangdong
Coca-Cola Ltd
41%
Swire Coca-Cola
Xiamen Ltd
Coca-Cola Bottlers
Manufacturing
Holdings Ltd
Taiwan
N o r th Ame r ic a
Campell
Swire (HK) Ltd
Xiamen Luquan
Industries Co Ltd
Swire Beverages
Ltd
Location of Business Operation
40%
Swire
Coca-Cola, USA
60%
Nanjing BC Foods
Co Ltd
60%
Hangzhou BC
Foods Co Ltd
100%
81.6%
85%
Swire BCD Co Ltd
80%
Source: P.244-245, Swire Pacific Limited’s 2011 Annual Report
Xian BC Coca-Cola
Beverages Ltd
Swire Coca-Cola
Beverages
Zhengzhou Ltd
Swire Coca-Cola
Beverages
Hefei Ltd
Swire Beverages’ 2010-11 Sustainable Development Report
4
Sustainability Management Committee of Swire Beverages Limited
Based in Hong Kong, Swire Beverages’ Head Office (SBHO) has set up a Sustainability Management Committee to approve and monitor
the company’s strategic direction and execution for sustainable development. The Committee is chaired by the Managing Director and
holds quarterly meetings. The senior management of the company serves as members of the Committee, consisting of our Chief
Executive Officer, China; Chief Operations Officer (Greater China); Finance Director; Executive Director, Sales & Marketing, China; and
Executive Director, Corporate Culture & Sustainability, China. Other members include the representatives of different functional teams,
who also serve as members of the Sustainability Working Committee. Through the co-ordination of SBHO’s Sustainability Team, they work
in the scope of public affairs and communications, community engagement and alliance, environment, workplace health & safety as well
as staff engagement.
The Sustainability Management Committee also provides strategic direction and guidance for our bottlers on matters relating to
sustainability. Each bottler has already set up a corresponding work structure to plan and execute the sustainability strategies.
Swire Beverages’ Seven Pillars of the Sustainability Platform
Live Positively Statement
Our Commitment to Sustainability
LIVE POSITIVELY is our commitment to making a positive
difference in the world by redesigning the way we work and
live so that sustainability is part of everything we do. Forever.
Beverage Benefits
Active Healthy Living
Quenching the thirst of individuals from all walks of life.
Our goal is to promote and support sporting
We are committed to giving them a range of drinks that
programmes, encouraging consumers to lead active
will suit their every need, anywhere.
and healthy lives by eating and exercising well.
Consumer
Well-Being
Delivering quality you can trust all the time.
Water Stewardship
Energy Management & Climate Protection
Sustainable Packaging
We pledge to give back
Growing our business, but not our carbon emissions. We
Our packaging is no longer
to nature the water we
strive to reduce our emissions every step of the way –
seen as waste. It is now a
use to make our drinks
from our production cycle, to improving the energy
valuable resource for future use.
safely and efficiently.
efficiency of our cold drink equipment and reducing their
Environmental
Well-Being
emission of greenhouse gases.
Workplace
Community Engagement
We will foster an open, safe and healthy working environment
We aspire to be actively involved in community care
where a highly motivated workforce drives success and excellence.
with a “true and sincere” approach, so that both the
people we serve and our business will benefit.
5
Swire Beverages’ 2010-11 Sustainable Development Report
Social
Well-Being
Swire Beverages’ Performance Highlights in 2011
profit in 2011
HK$588 million
new products
sales volume
995 million
(flavours and packaging sizes）
52
unit cases
(each unit case is equivalent to 24
bottles of 8oz beverages)
total number of
employees
>18,400
population served in
franchise territories
460 million
water use ratio
amount of water treated for reuse
1.75
39%
litre per litre
improvement from 2004*
200 million
litres per year
energy use ratio
0.29
MJ per litre
42%
improvement from 2004*
tonnes of recycled PET (rPET) used
1,941
Swire Beverages uses 2004 as baseline year, this is when the
Coca-Cola system set clear targets for reducing water and
energy consumption per unit of beverage.
TM
recyclable PlantBottle resin equivalent to PET resin
consumed in producing
> 3.6 billion
tonnes
bottles of DASANI Water
community investment total in 2011
> HK$17.2 million
(> RMB 13.95 million)
number of beneficiaries in community programmes in 2011
> 641,000
Swire Beverages’ 2010-11 Sustainable Development Report
6
Sustainability Strategies & Milestones
2011
Our Luohe bottler in Henan province, Mainland China was awarded
the platinum standard in the Leadership in Energy and Environmental
Design (LEED) by the U.S. Green Building Council.
2010-11 Sustainable Development Report attained a GRI standard of
“B+”.
2010
Launched Mainland China 2020 Vision defining key focus areas for sustainable growth.
Consolidated the Environment, Health & Safety Committee and the CSR Committee into
the Sustainability Management Committee. In addition, we established a Sustainability
Team, which takes a holistic approach in integrating sustainability of staff at work and in
their everyday life.
First in Mainland China to introduce the new lightweight water bottle reducing the use of
resin for bottles and closures by 26% and 66% respectively. The overall bottle weight
reduced from 16g to 11.8g.
2009
Launched safe driving programmes and incentives in Mainland China.
Launched “FLY greener carbon offset programme“ for corporate travel.
Became the first in Mainland China to overcome regulatory issues in using
10% bottle grade recycled PET resin, supplied by first closed-loop PET
recycling supplier – Incom.
2008
Swire Beverages’ Mainland China operations was the first Coca-Cola bottler globally to
introduce the 1881 Short Neck PET bottle design. The project won the 2008 Global R&I
Innovation award (Productivity category) from The Coca-Cola Company.
First in Mainland China’s Coca-Cola system to use fast reheat absorption PET resin in the bottle
blowing process reducing 13% of energy consumption in bottle blowing/making.
2007
Created the CSR Committee led by senior executives and chaired by the Managing
Director to formulate policy and give strategic direction and guidance on
community partnerships and investments. Same governance structure established
at each operating unit.
All operating units set aside 0.5% of profit after tax or HK$200,000 (whichever is
the higher) as CSR Fund for community programmes.
2006
Published the first Sustainable Seafood Consumption Policy.
Created the Environment Committee led by senior executives and
chaired by the Managing Director to give strategic direction and
guidance to bottlers on environmental efficiency projects.
7
Swire Beverages’ 2010-11 Sustainable Development Report
Sustainability Commitments & Approaches, Progress and Future Goals
of the Beverages Division of Swire Pacific Limited
Pillar
Beverage
Benefits
Commitments & Approaches
Introduced 52 new products including new flavours,
portion sizes and packaging types.
Continue to expand beverage range and
package choices to meet consumers needs
Rolled out new front of pack (FOP) labelling in all Swire
markets.
Luohe bottling plant is ISO 9001 and ISO
14001 certified.
Inspire and engage
consumers to lead active
healthy living.
Promoted consumer health and well-being through
“Community Walk” organised by our bottlers in
Hangzhou. In 2010-11, the event spread to Nanjing,
Guangdong and Xian, engaging over 19,000
participants.
Expand “Community Walk” to new cities
and to all other Swire Bottling provinces.
Safely return water used in the
production of our beverages
back to the hature.
Water Use Ratio* at 1.75, reduced 39% since 2004.
Further reduce WUR to 1.73.
Achieved “zero water discharge” at the bottling
plant in Zhengzhou. Treated water is fed to the
nearby Lianhu Park artificial lake, saving 200 million
liters of fresh water a year.
Complete Source Vulnerability
Assessment & Source Water Protection
Plan in all 14 bottling plants in Mainland
China, Hong Kong and Taiwan by the
end of 2012.
Energy Use Ratio* at 0.29, reduced 42% since 2004.
Develop new projects to further reduce EUR
in order to reach world-class standards.
* Water Use Ratio (WUR) is the metric used
* Energy Use Ratio (EUR) is metric used by
By the end of 2012, supply about 50,000 GJ energy
annually from completed projects on generating
renewable energy, including biomass boilers and
ground source heat pumps.
Swire Beverages to measure energy
consumption in the bottling plant,
expressed in mega joules (MJ) of energy
consumed per litre of beverage produced
Reduced 60% of computer-related energy consumption
through upgrading our server system and adopting
computer energy saving strategies.
Reduce, Recycle and Reuse.
First beverage company in Mainland China to use
recycled PET (rPET) for the packaging of sparkling
beverages. Consumed 1,941 tonnes of rPET, replacing
the use of virgin PET.
Sustainable
Packaging
Workplace
14 bottling plants (except Luohe) in Mainland China,
Hong Kong and Taiwan are ISO 9001 and ISO 14001 certified.
by Swire Beverages to measure water use
in bottling plants, expressed in litres of
water used per litre of beverage produced
Grow the business, without
growing our carbon footprint.
Energy
Management
& Climate
Protection
Future Goals
Provide quality choices to
meet changing consumer
beverage needs, enabling
them to make well-informed
beverages choices.
Active Health
Living
Water
Stewardship
Progress in 2011
Further explore the uses of renewable
energy.
Purchase new eKOfreshment coolers to aim to
reduce 40% of energy consumption and 99%
of Global Warming Potential.
Increase the use of rPET.
Launch PlantBottleTM in Mainland China.
Introduced the use of PlantBottleTM in the U.S. and Taiwan.
Improve employee health &
safety.
Employee’s Lost Time Incident Rate (LTIR) is 1.03,
representing an improvement of 16% since 2010.
Enhance two-way
communication with employees.
Focused on addressing road safety concerns by
equipping our frontline staff with 2,547 summer
helmets and 6,344 winter helmets and provided them
with safe-driving training.
Implemented “Cancelling Evening Meetings” policy.
Staff is not required to return to their sales office for a
meeting after work, resulted in an annual saving of
250 travel hours for each employee.
Establish a safety culture and to build a
comprehensive safety management system
to improve employee safety.
Luohe bottling plant is OHSAS 18001 certified.
Implement the suggestions collected from
the “Staff Employee Engagement Survey” to
enhance our engagement with employees
and their sense of belonging.
14 bottling plants (except Luohe) in Mainland China,
Hong Kong and Taiwan are OHSAS 18001 certified.
Conducted a “Staff Employee Engagement Survey” to gain
better understanding of their opinions and expectations.
Community
Engagement
Positively impact our
communities by supporting
Youth Leadership in well-being
and environmental programmes
in our business areas.
In Mainland China, Hong Kong, Taiwan and the U.S.:
Total community investment reached over
HK$17.2 million, doubled the amount in 2010.
Number of beneficiaries reached more than
641,000 individuals.
Sponsored and organised competition for
“community water conservation” projects, attracting
over 60 universities from SIFE China to participate for
2 consecutive years.
Continue to provide support for youth
leadership and to promote environmental,
active healthy living and community care
programmes.
Team up with different stakeholders
(including governments, NGOs, experts,
and university students, etc) in organising
different types of community projects.
Encourage the implementation of
community water programs to protect
local water resources.
Swire Beverages’ 2010-11 Sustainable Development Report
8
Beverage Benefits
As the market leader in the beverage industry, we go beyond fulfilling refreshment
and hydration needs by actively enhancing our high quality portfolio of beverages.
Providing information that enables consumers to make informed choices for their
drinking occasions and well-being aspirations.
Refreshing Choices for Different Occasions
With our on-going efforts in catering the needs of consumers, we have included a wide variety of juice drinks,
Chinese & Western-style tea drinks and herbal teas, dairy drinks and bottled water in our portfolio. These products
now make up 40% of our total business in 2011, compared with only 10% in 2000.
Product Volume Changes by Category (2000 vs. 2011)
2011
2011
2000
90.4% Sparkling Beverages
60%
0.6% Juices / Juice Drinks
19.2%
5% 3.4% Ready-to-Drink Coffees & Teas
4.1%
Water
13.4%
0.6% Other (Dairy/Soy/Energy/Vitamin Water)
322 million
unit cases
3.3%
995 million
unit cases
No. of flavours: 467
9
Swire Beverages’ 2010-11 Sustainable Development Report
More High Quality Beverage Choices
During 2010-11, we provided a wider selection of beverages for consumers. On top of new flavours, we added new serving
sizes, such as the mini size for one-time consumption and new family size for sharing. We also introduced the improved
lightweight packaging for our bottled water products in Mainland China and Hong Kong.
Year
Total number of
new products
New flavours
New serving sizes &
new packaging
2011
52
41
11
2010
34
25
9
Making Informed Choices
All of our products manufactured in Mainland China, Hong Kong, Taiwan
and the U.S. bear nutrition labels on their packaging in compliance
with local regulations. The labels provide consumers with easy-to-read
nutritional and calorie information of our products, enabling them to make
well-informed choices.
Lance Wright,
General Manager,
Swire Coca-Cola HK,
introducing the
new front of pack
labelling
Quality Standards
To maintain high quality standards, we follow The Coca-Cola Operating Requirements
(KORE) which sets clear standards and governs the Quality, Environmental and
Occupational Safety & Health System as it applies to other bottlers in the Coca-Cola
system worldwide.
Swire Beverages pays great attention to and continuously implements the standards
set under The Coca-Cola Management System (TCCMS) and conducts regular internal
and external audits to ensure compliance with TCCMS requirements.
Swire Beverages’ 2010-11 Sustainable Development Report
10
Let’s have “Balance
between Eat & Exercise”
Active Healthy Living
Acknowledging our consumer’s aspirations of physical well-being,
we will continue to encourage healthy living by sponsoring sports
programmes and promote the importance of balancing calorie
intake with adequate exercise.
No. of participants of
“Community Walk” events in
2010-11
Promoting “Eat & Diet Balance” through
“Community Walk”
calories
19,930
over 8.6 million
Our Hangzhou bottler initiated the “Community Walk” events in 2010 with the aim of
encouraging consumers to be more active in their daily lives. Following the success in
Hangzhou, our Nanjing, Guangdong and Xian bottlers launched similar events in 2011.
Features of the “Community Walk” events:
To encourage balance between eat and exercise through a 1 to 2-hour walk combining
the pleasures of walking and sightseeing.
To support Guangdong government’s “Green Path” programme, the Guangdong
bottler organised a “Cycling on Green Path, Share Your Joy” event on 10 December
2011. Over 200 participants cycled on the green path around the Honghua Lake in
Huizhou.
Hangzhou bottler initiated the
“Community Walk” event
Results:
Swire Beverages partnered with the Sports Bureau and relevant government
departments to promote the benefits of leisure walk. The event attracted a total of
19,930 participants including consumers, staff and their families, as well as suppliers.
Through on-site promotional activities and games, we communicated our concepts of
sustainability and the messages of healthy living, and promoted balance between
eat and exercise.
Nanjing bottler supported the
“World Walking Day”
Xian bottler organised a walking event
on the New Year Eve of 2012
11
Swire Beverages’ 2010-11 Sustainable Development Report
Guangdong bottler held a cycling event
in Huizhou to support the government’s
“Green Path” programme
Taiwan bottler’s “Smile
and Go” road running
event for mental health
Swire Coca-Cola, Taiwan was the sole
sponsor of “Smile and Go” road running
event for mental health organised by the
Jong Tung Foundation, with the aim of
encouraging consumers to maintain physical
and mental health by exercising regularly.
This event attracted about 5,000
participants who enjoyed free drinks and
on-site interactive games.
Hong Kong bottler’s
“Running Fun” event
Swire Coca-Cola HK has launched the
“Running Fun” event since 2004. The event
aims at encouraging members of the public
to exercise more and promoting the benefits
of running.
In 2011, this 10K race attracted over 2,000
runners from the public. Among them were
the Hong Kong Marathon record holder and
a number of elite veterans.
Swire Beverages’ 2010-11 Sustainable Development Report
12
Water Stewardship
We are committed to safely returning the water we use back to nature and our
communities in order to achieve our goal of water neutral.
Water is the most important ingredient in our beverages. So we have pledged to be
responsible stewards by seeking ways to reduce water use in our production and at the
same time establishing partnerships that contribute to sustainable use of water in our
communities. We aspire to build broad, meaningful and long-term partnerships with
community stakeholders to protect main water resources where our bottling plants are
located.
Reduce
Reuse
Replenish
Our Water Stewardship efforts are led by our commitments under the three guiding
principles “REDUCE, REUSE and REPLENISH”.
Improving Bottling Plant Efficiencies: REDUCE
Water Use Ratio (WUR) is the key performance indicator (KPI) we use to measure
the amount of water used in the bottling process to produce one litre of beverage.
39% improvement
in water efficiency since 2004
In 2011, we used approximately 5.98 billion litres of water, a 0.3% decrease compared
with 2004, despite a 62% increase in production volume compared with the same year.
100%
of wastewater is treated
Water Savings
(compared to 2010)
82
Olympic Size
Swimming Pools
208 million litres
We increased water efficiencies even further with some of our most recent water saving
initiatives. Eight of our bottling plants in Mainland China now use an air system to rinse
bottles. And in 2011, our bottling plants in Wenzhou, Hangzhou and Nanjing had epoxy
floors installed reducing the amount of water we need for cleaning.
Pioneering in Water Footprint Certification
With the help of an external consultant, Swire Coca-Cola, Taiwan and its suppliers examined
how much water was used, including green, blue and grey water footprints, during the
product life cycle for raw materials and for the production of a bottle of 600mL PET Coke.
Results show that each bottle of 600mL PET Coke has a total water footprint of 1.3632 litres
with blue and grey water footprints being 1.3588 litres and 0.0044 litres respectively.
This has helped us identify opportunities to improve water usage across the supply chain.
13
Swire Beverages’ 2010-11 Sustainable Development Report
Remarks:
Green water:
The volume of water evaporated from rainfall, such as
rainwater and condensed water in the air.
Blue water:
The volume of freshwater evaporated to produce
goods and services, such as tap water, surface water
and ground water.
Grey water:
The volume of polluted water required to dilute
pollutants to such an extent that the quality of the water
remains at or above agreed water quality standards.
REUSE and RECYCLING at Bottling Plants
To reduce the use of municipal fresh water, most of our bottling plants recycle rinse
water and treated wastewater. We then use the water in other areas of the bottling plant,
e.g. supplying water to cooling towers, for car washing and general cleaning. We saved
200 million litres of water in Mainland China in 2011. In addition, all of our bottling plants
are treating wastewater to the level that supports aquatic life. In most cases, the water
quality exceeds existing local legislation standards.
The wastewater treatment system at our Zhengzhou
bottling plant provides 200 million litres of treated
water every year for the local municipal government
A Refreshing Leap to REPLENISH
In May 2011, our Zhengzhou bottler collaborated with the local municipal government
on a project to fully reuse treated wastewater generated from the bottling plant. The partnership
involved building 230 metres of pipeline onsite and a further 2,200 metres from the
bottling plant to the nearby city park. It transported high quality treated wastewater for the
daily cleaning, plant watering and supplying of the artificial lake. Our Zhengzhou bottler is
among the first manufacturers to achieve full reuse of treated wastewater while enabling
the city to save 200 million litres of fresh water every year for the park.
Identifying meaningful “replenish” opportunities
By the end of 2012, we will complete our Source Vulnerability Assessments (SVAs) for
all bottling plants and develop Source Water Protection Plans (SWPPs). The results of
the SWPPs will guide our next steps with local stakeholders to mitigate potential risks
associated with quantity and quality of water supplies.
Through the wastewater treatment system at the
Zhengzhou bottling plant, treated water becomes
clear and clean
Education & Awareness
We strongly believe in the power of partnerships with government departments and
NGOs. At the same time, this helps us engage the community on the sustainable use of
water and source water protection. Since 2010, our community investment has been
focusing on inspiring youth to be practitioners and future leaders of water and
environmental conservation through a variety of education and awareness programmes
(see Community Engagement on p.25-27).
Treated water from the Zhengzhou bottling plant
supplied to the nearby Lianhu Park artificial lake
Volunteers from our Nanjing bottling plant make
yearly visits to Yueya Lake to clean and preserve the
environment, underscoring our commitment to water
stewardship
Swire Beverages’ 2010-11 Sustainable Development Report
14
our
ut
n
ur
ut
n
Energy Management & Climate Protection
We are committed to growing our business but not our carbon emissions.
This is a bold objective but vital to the way we plan our future expansions.
Carbon Emissions & Carbon Footprint
Swire Beverages strives to reduce carbon emissions in its
daily business operations by making further improvement
on energy usage and increase the use of renewable energy.
26%
In Mainland China, we initiated a “Cradle to Grave” study
to analyse the carbon footprint of our key products and
packages including recyclable glass bottles, aluminum cans,
and PET bottles in various sizes ranging from 200mL to 2.5L.
in EUR -
reduction in
GHG intensity
since ’2004*
We found that in some areas there is clearly room for
improvement. The largest portion of our carbon footprint
came from the packaging and retail stage – including cold
drink equipment coolers. The study also reinforced our
plans and efforts to reduce the use of fossil-fuel sourced
packaging materials and to encourage cooler innovations.
40
Energy consumed in bottling process reached 982 million
MJ in 2011. This is an increase of 0.1% from 2010 but a
reduction of 6.7% compared to 2004, despite a 62%
increase in production volume. In addition, our overall EUR
for production was reduced by 6.5% to 0.29 MJ/L
compared with 2010.
From 2 0 0 4 to 2 011, our U.S . operations have achieved
a 27% reduction in EUR.
15
Swire Beverages’ 2010-11 Sustainable Development Report
* Calculated per litre of
product. Only considers
Scope 1 and Scope 2
carbon emissions.
Key Initiatives Driving Our Energy Efficiency
In 2010 and 2011, our bottlers in Mainland China made energy savings from a number of environmental projects. The key projects included:
Year of project
launch
Bottling
Plant
2 0 10
Hangzhou
Energy saved
(GJ)
Project
How energy savings were achieved?
M ethane Gas
C apture Boilers
M e t h a ne w a s ca pt ure d from ou r w a st e w a t er t re a t ment sy st e m
and u s e d t o p ro d u c e s t e a m , re d u c i n g o u r n e e d t o p u rc h a s e o i l
to r un t h e bo iler s
8,1 0 0
Ammonia Waste
Heat Rec overy
Wa st e hea t w a s re co v e re d from t h e a mmon ia chille r s fo r u se in
KRONES Bloc 生產線
the bot t le w a r ming pro ce ss
8,0 0 0
C hilled Water
Rec overy
Ins t a l l e d a h e a t e x c h a n g e u n i t t o re c o v e r c h i l l e d w a t e r f ro m
the bot t le w a r me r fo r refr ige r a t io n used a t product io n. T h is
helped increa se t h e efficie ncy of t he w a r me r u nit a nd redu ce
the e nergy con sumpt ion for re fr ige r a t io n
3,6 0 0
Xiamen
Low P ressure
Bottle Blowing
Optimised the bottle blowing process and set different bottle
blowing pressures for different types of bottles. This reduced the
amount of electricity used by the high-pressure compressors
1 ,4 4 0
Luohe
Solar Heater
System Ex pansion
Used so la r po w e r t o h ea t w a t e r, t h ere by sa v ing fu el a n d gr id
ele ct r icit y
553
Nanjing
Cold energy recovery
from the CO2
evaporation process
Co ld e nergy from t h e C O 2 ev a por a t ion process w a s rero ut e d
thro ugh t h e hea t e xcha nge unit t o ch ill w a t e r, t h ere by
red u cing t he use of e le ct r icit y
36 0
Guangzhou
Xiamen
Guangzhou
Xiamen
Wenzhou
Hangzhou
Hefei
2 0 11
In June 2011, the Swire Coca-Cola Bonneville production center in Utah, the U.S. set up a direct-fired heater for the can-warming
process. Through introducing this new technology, the center now operates at over 99% efficiency compared to 60% with the previous
heat exchanger. At the same time, the system reduced energy usage by 13%.
Reduction of Indirect Carbon Emissions from Cold Drink
Equipment (CDE)
We purchased 281,469 coolers equipped with Energy Management System
(EMS). They account for 68% of the total coolers placed in the market. The EMS
inside these coolers automatically manages the energy used by the compressor
and lighting.
It also records the store’s normal business hours and automatically adjusts the
temperature range from 3-4˚C to over 10˚C in non-business hours, in addition to
turning off the cooler’s lighting. This reduces energy used by up to 30%.
Cooler with
cassette systems
and LED lighting
Cassette
compressor
Energy
Management
System
Currently, 256,538 units of coolers with EMS also have removable cassette compressor
systems. The coolers are also built with an improved cooling system design and
more efficient and durable materials, making them even more energy saving.
The cassette compressors can be replaced at customer locations swiftly and
efficiently, reducing the need to bring the entire cooler back to the bottling
plant in the event of repairs. This way, we are significantly reducing the creation
of indirect carbon emissions from the transportation of coolers.
Green IT
Our Swire Beverages Information Technology team has successfully optimised the server systems at both the headquarters and bottlers
as well as implemented Server Virtualization technology to reduce the number of servers needed. On top of that, the team has
developed a power saving strategy that presets all computers and notebooks. When idle, monitors will automatically shut down
after 15 minutes, while computers will enter standby mode after 60 minutes. In 2011, these two measures helped our company reduce
its IT energy consumption by 60% (or 4.47 million kWh) and reduced 3,767 tonnes of CO2 emissions.
Swire Beverages’ 2010-11 Sustainable Development Report
16
Renewable Energy
We are committed to exploring use of renewable energy in order to reduce our energy
consumption and environmental impact during the production process. Our objective is
to derive 5% of our energy from renewable energy sources by the end of 2012. We have
listed below some of our key renewable energy projects since 2010:
Project
How renewable energy was used?
Huizhou
Biomass Boiler
U sed whea t stra w a s a bio-f uel to run
th e boiler so a s to reduce SO 2 a nd NO X
emissions
Luohe
Gro u n d S o u rce
Heat Pump
Used the consta nt tempera ture
underground to prov ide hea ting a nd
cooling needed for production and
other f a cilities
5,085
Zh e n g z h o u
Hangzhou
Luohe
We n z h o u
Xiamen
S o l a r H e a te r S y s te m
U sed sola r power to hea t wa ter, thereby
s a v ing f uel a nd electricity costs
3,250
Xiamen
Methane Gas
Ca p tu re B o i l e rs
M etha ne wa s ca ptured f rom our
wa stewa ter trea tment sy stem a nd used to
produce steam, reducing our need to
purcha se oil to run the boilers
1, 558
Carbon Offset Programme
for Business Trips
Swire Beverages joined the “FLY
greener Carbon Offset Programme”
set up by Cathay Pacific Airways to
offset carbon dioxide emissions from
our business trips. In 2011, our
business trips totalled 3,381,451
kilometres and we offset a total of
636 tonnes of CO2 emissions.
17
Energy saved
(GJ)
Bottling Plant
Swire Beverages’ 2010-11 Sustainable Development Report
38, 50 0
Carbon Footprint Labels on Packaging
In March 2011, Swire Coca-Cola, Taiwan (SCCT) received a
carbon footprint certification from Taiwan’s Environmental
Protection Administration (EPA) for our key products –
including 600mL and 2L “PET Coca-Cola” and 500mL
“Minute Maid”. This enabled SCCT to label the relevant
carbon footprint on these products. The EPA also invited
SCCT to be a “model bottling plant” and assist in
formulating standards for quantifying carbon footprints for
different products for the industry. This project not only
gave us a chance to understand how much greenhouse
gases are produced during each
stage of a product’s lifecycle, from
sourcing, production, packaging,
recycling, transportation, to
disposal. It also guided us towards
developing further
countermeasures to reduce
greenhouse gas emissions.
Luohe Bottling Plant with LEED Platinum Certification
Our Swire Coca-Cola Beverages Luohe bottling plant was awarded the Leadership in Energy and
Environmental Design (LEED) Platinum Certification by the U.S. Green Building Council. This certification
acknowledges the bottling plant for meeting the world’s highest performance standards in key areas of
building energy saving and human and environmental health protection.
Luohe is the first
bottling plant to
receive platinum
certification:
In China’s
FMCG
industry
Within the
Coca-Cola
System
globally
In China’s
Beverage
industry
Savings
Luohe bottling plant’s annual environmental
reductions: Emission reduction of CO2
equivalent to:
1,200 – 1,500
tonnes per year
Amount of water saved:
25,000 tonnes per year
Isometric Diagram of Swire Coca-Cola’s bottling plant in Luohe, Henan Province
Among all of our Swire bottlers, Luohe bottling plant has the lowest water and energy usage for each litre of products produced. It was
built with the most sustainable production practices as its core value, and is equipped with 49 environmental, health & safety
features in order to reduce energy and water consumption. What’s more, it allows employees to work in a safer environment.
Ground Source Heat Pump (GSHP)
Lighting Efficiencies
Methane Gas for Power
The earth’s temperature below five meters
• Reinforced translucent fibre-glass roof
The plant uses methane produced
is normally a consistent 15°C. During
panels and 52 skylights were installed
during wastewater treatment to power a
summer months, when the earth’s
on the roofs which can supply natural
small-sized boiler for producing steam,
temperature is cooler than the air
light to 75% of the total production area.
which is then used during production,
temperature, cold energy is extracted
• 629 LVD induction lights have been
lessening the need for non-renewable
from the earth; while in winter months,
installed in the production and
energy sources.
heat energy is extracted by circulating
warehousing areas and 232 T5
clean water through over 120 kilometers of
energy-saving lights have been
Water Savings
HDPE piping; which is compiled in a matrix
installed in the office area.
• The waste water discharged from the
water treatment system for incoming
of 800 interconnected vertical boreholes of
water is recovered and reused, saving
50 meter depth under the Luohe grounds.
Bloc Filling Line
The GSHP system provides space heating
Krones carbonated (CSD) high speed
and cooling to the facility, hot and cold
production line is equipped with
water to the bottling lines and heating to
Eco-driven conveying system. Integrated
pipes which are highly resistant to
the Luohe waste water treatment plant
into the design of bloc filling line, bottle
corrosion will lessen the potential for
to improve the waste water treatment
rinser and air conveyor system between
water leaks and improve water use
efficiency. Carbon savings are estimated to
filler and blower can be eliminated. It also
range from 20% (cooling) to 40% (heating).
enabled 20oC ambient filling that
25,000 tonnes of raw water a year.
• Installation of underground HDPE
efficiency.
• Dry-floor using epoxy resin.
eliminates usage of conventional ammonia
Thermal Wall Insulation
compressor for chill-filling and subsequent
Inside the plant, the thermal insulation
warming process that brings filled product
reduces heat loss during the winter months.
to room temperature for storage.
Swire Beverages’ 2010-11 Sustainable Development Report
18
Sustainable Packaging
Our bottles, cans and other packaging materials are critical to protect the quality of our
products and deliver our beverages safely to the hands of our consumers. From the
manufacturing stage to the disposal of all our materials, we are mindful of the impact
it has on the environment. Our goal is to turn our used packaging into a valuable
resource for future use.
Reduce, Recycle and Reuse
Reduce
We at Swire Beverages are committed to reducing the environmental impact
on our planet with innovations in packaging design – using new types of
environmentally friendly materials and using less of it in our packaging.
We have been working closely with our suppliers to look at possible ways to
use less material (lightweighting) in our packaging. For example, making
lighter recyclable glass bottles, cans as well as PET bottles. Since 2005, we
have been lightweighting small PET bottles. And by 2010, the weight of the
bottles decreased from 29g to 22.3g per bottle, which was a 23% weight
reduction. Another critical area of improvement was the shortening of the
bottleneck, from 5.1g in 2008 to 3.8g in 2010, reflecting a weight reduction of
25%.
In addition to the introduction of the 1881 short-neck bottle design, the
weight of the bottle caps was also reduced by 22%, from 3.2g to 2.5g.
500/600mL PET bottles
Lightweighting bottlenecks
2005
29g
6.7g or 23%
lighter
2010
22.3g
2008
5.1g
Long-neck
Short-neck
1.3g or 25%
lighter
2010
3.8g
Recycle
Educating Consumers with the Innovative
Reverse Vending Machine
In Hong Kong, we have developed a Reverse Vending Machine
(RVM) to educate consumers about the recovery of used packaging.
They can deposit PET bottles into this machine and collect
redemption credits in return. At the moment, we have 11 RVM units
at various locations around Hong Kong.
19
Swire Beverages’ 2010-11 Sustainable Development Report
RVM at
Ocean Park
In 2010, we introduced our brand-new lightweight-bottle design for our mineralised water in
the Mainland China and Hong Kong markets. With the bottle weight reduced by 26% and
35% in the respective markets, the new bottle can be twisted and compressed after drinking.
This shrinks the bottles to 30% of its initial size, making them easier for recycling.
Lightweight Mineralised
Water Packaging
in Mainland China
Cap Lightweighting
From 4g to 1.35g
-66%
Athlete Ambassador Liu Xiang demonstrates how to twist our new lightweight bottles
Bottle Lightweighting
After launching the lightweight design for our bottled mineralised water in Mainland China,
we reduced the use of PET materials by over 3,000 tonnes in 2011.
From 16g to 11.8g
-26%
Post-consumed bottles
when twisted saves
Reuse – Increasing Recycled PET content
-70%
rPET
space during recovery
Our bottling plants in Mainland China are the first in the China beverage industry to
use bottles made with 10% recycled PET (rPET). The use of rPET was approved by the
Ministry of Health and the General Administration of Quality Supervision, Inspection
and Quarantine of P.R.C. (AQSIQ). In 2010, we avoided using 1,941 tonnes of new
virgin PET resin. This saving of material is equivalent to 160 million 500mL new Ice
Dew PET bottles (calculated at 11.8g per bottle).
Carbon reduced
-35%
Compared with 2008
The rPET bottle and its recycling process
– from used bottles to brand-new plastic bottles
30%
Plant-Based PET
Made from sugarcane and
molasses, by-products of
sugarcane processing
Recover
Recycle
70%
Standard PET
Made from Petroleum-based
plastic...and still a 100%
recyclable bottle
T
rPE
New Drink Bottles
PlantBottle™ PET
Reuse
Our bottler in the U.S. was the first to
pioneer the use of PlantBottle™, as part
of the Coca-Cola System. PlantBottle™
is a bottle that is produced with up to
30% plant-based PET and the rest with
standard PET. Plant-based PET is made
via a process that turns by products of
sugarcane into a key component of
plant-based plastic. In 2011, the amount
of petroleum and fossil fuel we avoided
using in making PET plastics was enough
to produce more than 3.6 billion new
bottles for DASANI Water.
Swire Beverages’ 2010-11 Sustainable Development Report
20
Workplace
Fostering an open, safe and healthy workplace environment, where we
can stimulate employees to reach their potential and inspire them to create
outstanding results and make a positive difference.
Employee
Care
At Swire Beverages, we see our employees as our greatest asset. They are vital in
maintaining our competitive edge, at present and for the future. Through our efforts in
recruiting, developing and retaining talented individuals, we aim to build a workforce
of highly skilled, motivated and experienced employees. And we will provide them
with various development opportunities to help them grow within our organisation.
We are an equal opportunities employer and we seek to maintain a respectful,
pleasant and safe workplace for them. We respect human rights and will not tolerate
harassment or discrimination in any shape or form, nor do we employ child labour or
use forced labour.
When we appoint and promote our staff, their experience, skills and job performance
are taken into account to determine their salary level and terms of contract. We will
not discriminate based on age, gender, race, national origin, disability, sexual
orientation, family or marital status.
Staff Employee Engagement Survey
In 2011, we conducted a “Staff Employee Engagement Survey” to better
understand the needs and expectations of our staff at work. We wanted to find out
how we can provide a more encouraging working environment for them to thrive in.
The survey covered all of our full-time staff and out-sourced labour force. When the
results of the survey are finally collated, we will seek to develop long-term strategies
to support the sustainable growth of our staff within our business and take us
towards our goal to becoming the employer of choice.
People
Work
• Top Management
• Work Tasks
• Direct Supervisor
• Sense of Accomplishment
• Customers Focus
• Resources
• People Focus
• Work Processes
Company Practices
• HR Practices
Opportunities
• Management Performance
• Organisation Reputation
• Career Opportunities
Engagement
• Learning & Development
• Diversity
• Communication
• Corporate Responsibility
Total Rewards
Quality of life
• Pay
• Work-Life Balance
• Benefits
• Physical Work Environment
• Recognition
• Safety
Source: AON Hewitt
21
Swire Beverages’ 2010-11 Sustainable Development Report
Immersion in Live Positively
In 2010-11, we launched our campaign for commitment to Sustainability and Live Positively in Hong Kong and Mainland China.
Over 13,450 staff took part from all of our bottling plants. They not only learned about our commitments and exciting achievements
under key areas of sustainability, but were also encouraged to integrate sustainability into their work and everyday life.
ong
Hong K
Hangzhou
Nanjin
g
n
Xiame
Luohe
Hefei Xian
ong
Guangd
Learning & Development
We encourage our staff to pursue continuous learning. To help them achieve that, we
provide them with training and diverse career development opportunities, so they can
realise their full potential and enhance their professionalism.
We aspire to become one of the Best Employers, and strongly believe in the importance
of developing future leaders. We encourage them to develop not only their management
and leadership capabilities, but also to grow on a personal level. Our Management and
Leadership Development Program (MLDP) takes participants on a journey to challenge
them to understand more about themselves and to learn to become more effective
leaders with Swire Beverages. Over the years, 630 managers took part in the first level of
the program while 80 managers enrolled in the higher level.
Employees of Swire Beverages participating in a volunteer
activity as part of the MLDP program held in Xinjiang
The Antarctica Mission
On 5 September 2011, our company held a sharing session themed “An extraordinary
leadership journey to Antarctica” and invited over 140 Swire Group colleagues to attend.
There were two guest speakers – Mr Simon Yip, our Executive Director, who was our
company’s first representative in the “Coca-Cola Antarctica Mission” and Mr Robert Swan,
the leader of the mission, a renowned pioneer explorer and expert on climate change
research. They spoke about how their trips to Antarctica changed their perspectives on
life, career and sustainable development. They also reflected on how personal behaviours
and corporate businesses are affecting the planet through observing the changes
happening in Antarctica.
The 2011 Coca-Cola Antarctica Expedition
Swire Beverages’ 2010-11 Sustainable Development Report
22
Occupational Health & Safety
Swire Beverages is committed to making sure our employees are healthy and safe in the
workplace. In 2011, we made improvements to our safety management structures and
capabilities. In addition, we raised broader awareness to the safety performance of our
bottlers so we can respond swiftly with corrective actions. The Sustainability Team at our
headquarters is responsible for providing guidelines for key areas of safety improvement that
should be focused on. The team is also conducting monthly reviews with the headquarters’
functional teams and bottlers’ safety teams to monitor safety performance and track progress.
Bottlers were asked to incorporate occupational health & safety reviews into their management
routine. Safety managers at our bottlers were advised to obtain professional occupational
health & safety qualifications to enhance their ability to address safety concerns and execute
actions with relevant functions.
Road Safety
In Mainland China, many of our frontline staff need to travel by motorcycles on the road to
serve our customers every day. In 2011, we stepped up on our actions to improve the
safety of our employees and reduce the seriousness of injuries if and when accidents do
occur. During 2011, we distributed 2,547 summer helmets and 6,344 winter helmets to
our frontline staff and provided them with safe-driving training. These initiatives helped us
drop road-related lost time incidents by 12% compared to 2010.
Safe Operation of Forklifts
We pay a lot of attention to the safe operation of forklifts, which are widely used
in our warehousing and logistics operations.
In addition to the safety management guidelines in place, all forklift operators
are required to have the necessary training and driver’s license, as well as
participate in safe operation training for forklifts offered by the bottlers from
time to time.
The “Cancelling Evening Meeting” Policy
Our bottlers in Mainland China have implemented the “Cancelling Evening Meeting”
policy with the wide adoption of mobile handheld order processing device. This means we
are allowing our sales representatives to go home directly after visiting customers instead
of returning to the office for processing of orders. By reducing their work travel time by
one hour each day, we hope it will reduce their exposure to traffic hazards while fatigued or
during night time. This policy will also reduce direct carbon emissions from traveling back
to sales offices.
23
Swire Beverages’ 2010-11 Sustainable Development Report
Total Lost Time
Incident Rate (LTIR)
decreased
16%
compared to 2010
Employee Care
Our company encourages our employees to exercise and achieve a work-life balance. We achieve this by creating exercise rooms in
the bottling plants and offering staff a variety of fitness programmes to relax and recharge.
The “Go To Health” Programme
In 2011, the Zhengzhou and Luohe bottling plants launched the “Go To Health” programme. 2,100 full-time staff signed up and set their
goals for improving health through weight management and fitness programmes. They also created an internal blog for themselves to
share tips and encourage each other towards healthier living.
Measuring the composition of body fat of an employee
Acquainted staff with calorie contents in various foods
and beverages by playing the “Calorie Card Game”
Conveying information and benefits about beverages
by showing five video clips about “Beverage Benefits”
Fitness Centers at Bottlers
Hefei, Xiamen and Xian are the first bottlers to have a fitness center for employees to enjoy more physical exercises during
lunchtime, off hours and weekends.
Xian bottling plant
Hefei bottling plant
Xiamen bottling plant
Improving Workplace Environment
Our bottlers in Mainland China are introducing different improvement initiatives to keep
the workplace at optimal temperature for our workers, such as installing air conditioning
units at specific workstations.
Nanjing – An Air Source Heat Pump (ASHP) system was installed in the production and
packaging areas of the bottling plant. It produced cool air to help maintain an
optimal room temperature. The heat generated from the refrigeration process
is recycled for bottle warming and thus saving energy.
Luohe – Heat generated from the bottle blowing process is recycled
for warming up working areas in winter.
Swire Beverages’ 2010-11 Sustainable Development Report
24
Community Engagement
Committing to the needs of our communities, with relevant programmes in
every community we serve.
Benefiting
1,400 students
No. of Coca-Cola Hope Schools
in Mainland China
118
Shaanxi
Jiangsu
Henan
0
Anhui
Zhejiang
In Swire
Territories
Fujian
Guangdong
16
We are keen on promoting the well-being of our consumers as well as the community. Being an advocate of the active healthy living
movement, we have developed a series of community activities, including Community Walk and Green Walk, to encourage our
consumers to “Live Positively”. We believe it is the best way forward for good health. What’s more, we are not just achieving a balance
of diet and exercise, but also paying our respects to nature. Our staff is highly engaged in these activities, acting as ambassadors to
support this movement.
Bringing Sustainable Contributions to the Community
Since 2007, all of our operating units are required to allocate 0.5% of the profit gained after tax or HK$200,000 (whichever is the higher)
into a Corporate Social Responsibility (CSR) Fund for community programmes each year.
While each bottler actively organises community engagement projects in its own business territory, the Sustainability Team at our
headquarters in Hong Kong is responsible for co-ordinating strategic community programmes that most of our bottlers can take part in.
In 2011, our bottlers in Mainland China, Hong Kong, Taiwan and the U.S. have invested over HK$17.2 million in our community
programmes – more than double compared to 2010, benefiting more than 641,000 people.
25
Swire Beverages’ 2010-11 Sustainable Development Report
Caring for the Environment
Let’Er Buck and Give It Back
Swire Coca-Cola, USA made an effort to strengthen local partnerships at
the Pendleton Round Up. While rodeo fans from around the world yelled
“Let’Er Buck”, the organisers actively encouraged them to “Give it Back”– a message
displayed at the venue and on the back of trucks to remind consumers to
recycle their used drinks bottles. Through our efforts, we successfully collected
75% of the containers sold during the event and raised US$10,000 for the
Round-Up Foundation Scholarship Fund.
Promotion of Lightweight Bottles with the National
Geographic Channel
In early 2011, Swire Coca-Cola, Taiwan (SCCT) became the first company in
Taiwan to produce bottles with up to 30% plant-based materials. The bottles
were used for LOHAS purified water. It not only offers a greener package
alternative for our consumers, but also cuts carbon emissions and reduces the
use of fossil PET by 30%.
In promoting greater awareness of plant-based bottles as well as the
importance of bio-diversity in our environment, SCCT partnered with the
National Geographic Channel to produce a documentary urging people to
protect the “Taiwanese Formosan Black Bears” which became an endangered
species because of the severe deterioration of their natural habitat. A shorter
version of the documentary was aired with the LOHAS purified water TV
commercial and on the social media network, YouTube (www.youtube.com/
watch?v=hX0VxshNdE) and drew a lot of public attention. Young artists
were also invited to make black bear shaped statues from recycled
PlantBottleTM. This initiative attracted over 310,000 people in total during
its exhibition tour around Taiwan.
Source: YouTube
Taiwan “Water Bank” with an e-Touch
and the “Green Water School”
Mr Doug Klein, General Manager of SCCT,
together with the Environmental Quality
Protection Foundation at the launch of the
iPhone version of the water footprint calculator
In 2011, Swire Coca-Cola, Taiwan (SCCT) with the
Environmental Quality Protection Foundation continued
to promote the “Coca-Cola Taiwan Water Bank”
programme to educate the public about water
conservation. The iPhone version of the Water Calculator
was downloaded by more than 2,900 users, providing
an easy way for them to calculate their water footprints,
i.e. water used in each of their frequent daily routines.
In addition, SCCT continued to sponsor the
“Green Water School” programme, reaching
more than 6,120 students from 78 elementary schools.
Swire Beverages’ 2010-11 Sustainable Development Report
26
Community Water Conservation Projects
At Swire Beverages, we strongly believe that partnerships of stakeholders (such as governments, NGOs and schools) with broader
interests at heart can bring about larger positive impacts for the community. So, we have joined forces with these key stakeholders and
organised a variety of source water protection programmes in schools and communities, aiming to raise awareness of water-saving
amongst the students and the public.
Swire Beverages-SIFE China “Better Water, Better Life
Water Challenge Competition” 2011
From 2010-11, we partnered with Student In Free Enterprise (SIFE) China
to engage students in exploring and piloting possible solutions for
conserving water resources in the communities we serve and live in.
The competition gave students a chance to create source water protection
programmes for local communities and to learn from local government,
specialists, academia, our bottlers’ environmental managers, as well as
fellow students from other universities. They also had the opportunity to
visit our bottling plants and to learn more about our business, operations
and progress on the sustainability front.
Participating teams presenting their
water resources conservation solutions
The competition, held in 2011, attracted 92 teams to participate – 53 SIFE
member universities in Mainland China and 1 university in Hong Kong.
The judging panel, made up of government
officials from the Water and Environment
Bureau, water resource specialists,
academics, as well as representatives from
Swire Beverages’ environmental team and
SIFE China
Winning teams were awarded certificates and seed funding to implement
their water resources protection programmes
“Save a Barrel of Water” Campaign
We supported a nationwide campaign in schools to educate youth about water
conservation so they can sustain long-term water and environmental protection in
the community. In 2011, Guangdong, Hangzhou and Nanjing bottlers supported water
proposal entries from a total of 11 “green teams” in 6 universities. On top of that,
a student from the Nanjing territory proudly became one of the 10 finalists in Mainland
China who ran for the selection of being a torchbearer in the London Olympics.
27
Swire Beverages’ 2010-11 Sustainable Development Report
Caring for the Community – our local initiatives
Coca-Cola Takes Me Home
Chinese New Year is a time for family reunions, but for many migrant university students whose homes are outside of the province,
going home for the holiday is just not possible because they simply cannot afford the trip.
Our Nanjing bottler brought warmth to some of those students with the “Coca-Cola Takes Me Home” event on 29 December 2011.
30 students from underprivileged families were selected and received return train tickets, Coca-Cola beverages and “lucky money”
for a timely and joyful New Year reunion with their families.
Caring for Autistic Children
Our Hangzhou bottler has been committed to helping autistic children. They launched
two events in 2011 to show that they care. On “World Autism Awareness Day”, 2 April,
our colleagues in Hangzhou paid a visit to the Hangzhou Morning Star Children
Rehabilitation Center and took the children out for a full day of outdoor fun and games.
And on 18 December, our Hangzhou bottler organised a charity bazaar to raise money
for autistic children from underprivileged families. Despite the chilly weather, the passionate
volunteers at the bazaar attracted a lot of consumers and even shared their own experience
in helping children with autism. All in all, the event raised a total of RMB 25,645.
Set Sail – Caring for the Mental Health of Migrant Students
“Set Sail” is a signature programme from our Xiamen bottler that aims to help migrant students and special education schools.
Volunteers, recruited from universities and within our company, are trained to be mentors. They pay visits to the schools once every
other week to offer psychological counselling and help migrant students adapt to the community. This programme has now been
extended to schools in Xiamen, Fuzhou and Quanzhou.
In 2011, about 4,300 children benefitted from this programme.
Swire Beverages’ 2010-11 Sustainable Development Report
28
Visit to the Coca-Cola Museum
Each of our bottlers in Mainland China, Hong Kong, Taiwan and the U.S. have
established a “Coca-Cola Museum” to welcome schools, NGOs and the public.
Our guides take visitors around to explain about Swire Beverages’ business and
our progress in the key areas of environmental sustainability. Visitors can view
our production lines behind large glass windows and see with their own eyes
how our beverages are made. In 2011, our bottlers received a total of 172,603
visitors.
Each “Coca-Cola Museum” has its own distinctive feature. In June 2011,
Swire Coca-Cola HK reopened its museum after renovations and revealed new
zones for visitors, including “Live Positively”, “Drink for Health” and “Green
Living”. The museum also displays a few unique Coca-Cola limited-edition
memorabilia that are well sought after by many Coke fanatics around
the world.
Hefei
Zhengzhou
Xian
Hong Kong
Xiamen
Taiwan
Nanjing
Guangdong
Hangzhou
29 Swire Beverages’ 2010-11 Sustainable Development Report
Achievements & Awards
Location
Name of Award / Recognition
Awarding Organisation
Economic Development, Contribution & Social Improvement
Hangzhou
Top 30 Foreign Invested Tax Payers Enterprise of Hangzhou in 2011
General Office of Hangzhou Municipal Government
Luquan
Certificate for Enterprise Tax Payer of over RMB 10million
Xiamen Tong’an District Government
Nanjing
2011 Outstanding Contribution Enterprise Management Committee of Nanjing New &
High Technology Industry Development Zone
Wenzhou
Enterprise with Production Value exceeding RMB 100million
Management Committee of Wenzhou Development Area
Top 20 Tax-Paying Enterprise in Wenzhou Development Area
Management Committee of Wenzhou Development Area
Top 100 Tax-Paying Enterprise in Wenzhou
Wenzhou Municipal Office, State Administration of Taxation
Xiamen
Certificate for Enterprise Tax Payer of over RMB 80million
The People’s Government of Huli District, Xiamen Municipal
Zhengzhou
The Yellow River Friendship Award
The People’s Government of Henan Province
Tax Contribution Award
Zhengzhou Industry and Information Technology Committee
Outstanding Economic Contribution Award
Management Committee of Zhengzhou High & New Technology Industries Development Zone
Outstanding Entrepreneur of Zhengzhou
Zhengzhou Business Association
Workplace
Hangzhou Passed the highest level of Cleaner Production Audit
Hangzhou Municipal Government / Management Committee of Hangzhou Economic and Technology Zone
Luohe
Luohe Federation of Trade Unions
Model Home for Staff
Nanjing
2011 Internal Security Award
2011 Outstanding Unit of Fire Safety
Nanjing Municipal Public Security Bureau Management Committee of Nanjing New & High Technology Industry Development Zone
2011 Fire Safety “Four Abilities” Building Outstanding Units
Nanjing Municipal Public Security Bureau
Nanjing Textile Group Union “Outstanding Sub-Union”
Nanjing Textile Group Union
Wenzhou
Labour Integrity Enterprise
Management Committee of Wenzhou Development Area
Development Zone Four-Star Enterprise
Management Committee of Wenzhou Development Area
Safety in Production Advanced Enterprise
Management Committee of Wenzhou Development Area
Safety in Production Standardisation Enterprise
Management Committee of Wenzhou Development Area
Health Advanced Enterprises
Management Committee of Wenzhou Development Area
Zhengzhou 2010 Safety Production Outstanding Performance Unit
Management Committee of Zhengzhou High & New
Technology Industries Development Zone (Awarded in Mar 2011)
2010 Fire Safety Outstanding Performance Unit
Fire Safety Committee of Zhengzhou High & New
Technology Industries Development Zone (Awarded in Jan 2011)
Henan Best Employer
Zhaopin.com
Henan Best Employer
TianjiHR.com
Community Engagement
Hangzhou Charity Enterprise
Special Contribution Award of 20 Years of
the Project Hope of Quzhou
20 Years of Outstanding Public Welfare Partners of
the Project Hope of Zhejiang Province
HongKong “5 Years Plus Caring Company” Logo
Zhejiang Foundation for Disabled Persons
Quzhou Communist Youth League Administration Committee / Quzhou City Project Hope Office
Communist Youth League Zhejiang Provincial Committee / Zhejiang Youth Development Foundation
Consumer Caring Scheme
The Hong Kong Council of Social Service
GS1 Hong Kong
Xiamen
Education Devotion Award
Fujian Provincial Education Department Committee for the well-being of youth
Zhengzhou Charity Enterprise
Red Cross Society of Zhengzhou Branch
Red Cross Society of Zhengzhou Branch
2010 Zhengzhou Disaster Relief and Assistance Outstanding Unit
Swire Beverages’ 2010-11 Sustainable Development Report
30
Location
Name of Award / Recognition
Awarding Organisation
Water Stewardship
Hangzhou
2009-2011 Water Conservation Outstanding Performance Award
China Beverage Industry Association (CBIA)
Hefei
2008-2011 Water Conservation Outstanding Performance Award
China Beverage Industry Association (CBIA)
Huizhou
2009-2011 Water Conservation Outstanding Performance Award
Guangdong Provincial Environmental Protection
Excellent Demonstration Project
China Beverage Industry Association (CBIA)
Guangzhou Association of Environmental
Protection Industry
Hangzhou
2010 Water-saving Advanced Enterprise and Individual
Hangzhou Municipal Government
2008-2011 Water Conservation Outstanding Performance Award
China Beverage Industry Association (CBIA)
Luquan
Provincial Water Saving Award
Housing and Urban-Rural Development Office of Fujian
Nanjing
2008-2011 Water Conservation Outstanding Performance Award
China Beverage Industry Association (CBIA)
Xiamen
2008-2011 Water Conservation Outstanding Performance Award
China Beverage Industry Association (CBIA)
Zhengzhou Zhengzhou City Unconventionality Water Resource
Utilisation Wastewater Zero Discharge
2008-2011 Water Conservation Outstanding Performance Award
Zhengzhou Water Conservation Office
China Beverage Industry Association (CBIA)
Energy Management & Climate Protection
Guangdong Hong Kong - Guangdong Cleaner Production Partner
(Manufacturing)
The Economic & Information Technology Commission
of Guangdong Province / Environment Bureau of HKSAR Government
2011 Energy Saving Outstanding Performance Award
China Beverage Industry Association (CBIA)
Hefei
2011 Energy Saving Outstanding Performance Award
China Beverage Industry Association (CBIA)
Hong Kong
Champion, Take a “Brake” Low Carbon Action - Corporate Green
Driving Award Scheme - Most Significant Fuel Consumption Saver
Corporate Green Driving Award Scheme - Gold Tier
(Fuel Efficiency Improvement) and Gold Tier (Fuel Consumption Saver)
Friends of the Earth (HK)
Friends of the Earth (HK)
Huizhou
Hong Kong - Guangdong Cleaner Production Partner (Manufacturing) The Economic & Information Technology Commission
of Guangdong Province / Environment Bureau of HKSAR Government
2010 Zhongkai Hi-tech Zone Advanced Unit of Energy Conservation
The Zhongkai High-tech Development
Zone Energy Saving Leading Group Office
Cleaner Production Partner Commendation (Project Title: Add
insulation materials for bottle washing device to save energy)
Hong Kong Productivity Council
Cleaner Production Partner Commendation (Project Title: Recover
residual heat from salt water for heating liquefied carbon dioxide)
Hong Kong Productivity Council
Cleaner Production Partner Commendation (Project Title: Recover Hong Kong Productivity Council
residual heat from exhaust gas of boiler for pre-heating boiler feed
water boiler)
Huizhou City Advanced Enterprises of the Asian Games,
Asian Paralympic Games and Universiade Air Quality Protection
Guangdong Province Cleaner Production Enterprise
Clean Production Enterprise Province - Reward RMB 50,000
The Economic & Information Technology Commission
of Guangdong Province / Environment Bureau of HKSAR Government
The Economic & Information Technology Commission of Guangdong Province
Clean Production Enterprise City - Reward RMB 50,000
Clean Production Enterprise Zone - Reward RMB 50,000
Huizhou Economic and Information Technology Bureau
Management Committee of The Zhongkai High-tech
Development Zone
Hangzhou
2011 Hangzhou Economic and Technology Development Zone Energy Saving and Emission Reduction Award
Management Committee of Hangzhou Economic
and Technology Development Zone
Luohe
Taiwan
“Leadership in Energy and Environmental Design” Platinum Certification
U.S. Green Building Council
Environmental Exemplary Cooperation
Taoyuan County Government
Excellence Award of 2011 Top Grand Brands-Food and Beverage Industry Business Next Magazine
Wenzhou
Xiamen
Xian
2011 Energy Saving Outstanding Performance Award
2011 Energy Saving Outstanding Performance Award
China Beverage Industry Association (CBIA)
China Beverage Industry Association (CBIA)
2011 Outstanding Energy Saving Enterprises of Xian Economic &
Technology Development Zone
Xian Economic & Technology Development Zone Zhengzhou 2011 Zhengzhou Cleaner Production Audit
31
Huizhou City Air Pollution Prevention
Leading Group Office
2010-2011 Energy Saving Outstanding Performance Award
Swire Beverages’ 2010-11 Sustainable Development Report
Zhengzhou Environmental Protection Bureau
China Beverage Industry Association (CBIA)
Global Reporting Initiative (GRI) Performance
Economic
EC1
Direct Economic Value Generated
(at attributable level of Swire Pacific Limited’s shareholders)
Turnover
Valuation gains on investment properties
Finance income
Profit on sale of investments / other gains
Share of profits minus losses of associated & jointly controlled companies
Total
Economic Value Distributed
(at attributable level of Swire Pacific Limited’s shareholders)
Purchases of goods and services
Employee compensation
Payments to providers of capital
Payments to government
Total
Unit
2011
2010 Change in %
HK$M
9,223
-
11
65
302
8,553
-
7
113
334
7.8%
57.1%
-42.5%
-9.6%
9,601
9,007
6.6%
6,910
1,491
177
146
6,280
1,427
108
152
10.0%
4.5%
63.9%
-3.9%
8,724
7,967
9.5%
HK$M
Environmental
Unit
EN3
EN4
EN8
EN10
GJ
GJ
tonnes
732,420
673,480
5,980,429
791,560
625,350
5,793,486
-7.5
7.7
3.2
tonnes / %
tonnes / %
200,132 / 3.3%
468,830 / 7.8%
117,105 / 2% 475,536 / 8.2%
70.9
-1.4
tonnes
tonnes
51,541
149,370
61,653
132,012
-16.4
13.1
kg
33
50
-34.0
tonnes
2,325,586
2,079,232
11.8
EN16
EN19
EN21
Direct energy consumption by primary source
Indirect energy consumption by primary source
Total water withdrawal by source
Percentage and total volume of water recycled and reused
Treated
Untreated
Total direct and indirect greenhouse gas emissions by weight
Direct (Scope 1)
Indirect (Scope 2)
Emission of ozone-depleting substances by weight
(CFC-11 equivalent)
Total water discharge by quality and destination
To sewer
Labour / Employment
LA1
LA2
LA7
LA10
Total workforce by employment type, contract, and region
Total Employees
Permanent Employees
Total Workforce (including Supervised workers andtemporary contracts)
Mainland China
Hong Kong
Taiwan
The U.S.
Total number and rate of employee turnover by age group and gender
By gender
Female
Male
2011
Unit
#
%
#
#
#
#
#
%
%
By age group
Under 30 years old
%
30 and under 40 years old
%
40 and under 50 years old
%
Over 50 years old
%
Rates of injury, occupational diseases, lost days, and absenteeism,
and number of work-related fatalities
Hours worked
thousand hours worked
Total fatalities
#
Total lost time injuries
#
Lost time injury rate
%
Lost days due to injuries
days
Lost day rate
%
Average hours of training per year
per employee by employee category
hours
Top / Senior management
Middle / Junior management & Supervisory
Customer facing staff
Non-customer facing operational / technical staff
Others
Remarks: The difference of figures set out in Swire Beverages’ 2010 Sustainable Development Report
and this Report was due to different conversion factors
2010 Change in %
2011
2010 Change in %
18,471
83
22,145
17,810
1,674
907
1,754
18,186
82
22,297
17,893
1,672
979
1,753
1.6
1
-0.7
-0.5
0.1
-7.4
0.1
5.5
20.9
4.8
21.5
14.6
-2.8
16.9
6.7
1.9
0.9
17.4
6.5
1.7
0.7
-2.9
3.1
11.8
28.6
44,395
1
228
1.03
6,590
30
43,806
1
269
1.23
6,764
31
1.3
0
-15.2
-16.2
-2.6
-3.2
30
54
31
30
24
32
44
38
43
44
-6.3
22.7
-18.4
-30.2
-45.5
Swire Beverages’ 2010-11 Sustainable Development Report
32
Global Reporting Initiative (GRI) Index
References / Remarks
33
References / Remarks
1. Strategy and Analysis
4. Governance, Commitments, and Engagement
1.1
P. 2
4.11
P. 4 - 5
1.2
P. 2
4.12
P. 17 - 18, 27, 30 - 31
2. Organisational Profile
4.13
P. 4
2.1
P. 3 - 4
4.14
P. 1 - 3
2.2
P. 3 - 4
4.15
P. 1
2.3
P. 3 - 5
4.16
P. 1, 5 - 6, 11 - 12, 21 - 29
2.4
P. 5
4.17
P. 11
2.5
P. 3 - 4
Management Approach (Economic)
2.6
P. 3 - 5
EC1
2.7
P. 3
Management Approach (Environmental)
2.8
P. 3, 32
2.9
No significant changes
2.10
P. 18, 30 - 31
3. Report Parameters
3.1
P. 6, 32
EN1
P. 19 - 20
EN3
P. 32
EN4
P. 32
EN5
P. 2, 6, 15 - 18, 32
P. 1
EN6
P. 2, 6, 15 - 18, 32
3.2
P. 1
EN7
P. 2, 6, 15 - 18, 32
3.3
An annual report from 2007–2010. An updated version for 2010-11
EN8
P. 32
3.4
P. 34
EN10
P. 32
3.5
P. 1
EN16
P. 32
3.6
P. 1
EN18
P. 15 - 18, 32
3.7
No specific limitations
EN19
P. 32
3.8
P. 1
EN21
P. 32
3.9
P. 4 - 6, 32
EN23
NIL
3.10
P. 32
EN26
P. 2, 15 - 20, 32
3.11
No significant changes
EN29
P. 17
3.12
P. 32 - 33
Management Approach (Labour / Employment)
3.13
P. 2, 34
4. Governance, Commitments, and Engagement
4.1
P. 3 - 5
4.2
P. 4
4.3
P. 110 - 115, Swire Pacific Limited’s 2011 Annual Report
4.4
P. 2, 5, 21, 23
4.5
P. 110 - 115, Swire Pacific Limited’s 2011 Annual Report
4.6
P. 4
4.7
P. 110 - 115, Swire Pacific Limited’s 2011 Annual Report
4.8
P. 1 - 2, 4, 8
4.9
P. 4 - 5, 23
4.10
P. 4
Swire Beverages’ 2010-11 Sustainable Development Report
LA1
P. 32
LA2
P. 32
LA7
P. 32
LA10
P. 32
Management Approach (Human Rights)
HR2
P. 4
Management Approach (Society)
SO4
P. 4
SO5
P. 4
Management Approach (Product Responsibility)
PR1
P. 6, 9, 13, 15, 19 - 20, 32
PR3
P. 10
We hope to hear from you ...
This Sustainable Development Report forms an integral part of our ongoing dialogue with the communities where we live
and our business operates. We intend to provide you with a clear understanding of the ways in which we generate
long-term values for our consumers, customers, employees, communities and, in a broader sense, the global village.
We hope you have enjoyed reading this Report, which serves also as a platform for us to communicate with you on
this important topic – Sustainability.
We invite you to give us feedback on this Report and our efforts on sustainable development. With an aspiration to
create a better world for our future generations, you are encouraged to reach us via an electronic channel:
sustainability@swirebev.com.
Key contacts at Swire Beverages’ Sustainability Team:
Maureen Lee, General Manager, Sustainability: maureenlee@swirebev.com
Pat Poon, Senior Manager, Sustainability & Alliance: patpoon@swirebev.com
Office address: 33/F, Dorset House, Taikoo Place, 979 King’s Road, Hong Kong
Swire Beverages’ 2010-11 Sustainable Development Report
34