The environmental, health and safety performance information has been compiled from reports provided by all manufacturing sites in the Americas, Europe and Asia.
We track our performance both globally and locally through the use of Key Performance Indicators (KPIs) for Environment, Health & Safety (EHS) initiatives:
Lost time accident rate
Progress against targets at all of our facilities is tracked regularly, supported by a listing of key issues and actions for improving performance. Our focus on these metrics has supported improvements in many areas.
The environmental, health and safety performance information has been compiled from reports provided by all manufacturing sites in the Americas, Europe and Asia that are wholly, or majority, owned by Bacardi Ltd. Data for administrative offices, co-packers and third party contract manufacturers are not included.
How we measure our performance
Bacardi measures performance in two ways: absolute totals and efficiency metrics. Absolute measures are straightforward – for example, total number of accidents, total quantity of water consumed. Efficiency metrics are normalized against an appropriate output or other parameter – for example, accidents per one million hours worked, water used per unit of product manufactured. Efficiency metrics are calculated by taking a weighted average of the individual efficiencies of the different products and processes used throughout the business. In this way, we prevent arbitrary distortions of the overall efficiency factor by changes in our product mix or sourcing location.
Water use for our production again saw a significant year-on-year reduction in fiscal 2011 with 4% less water used. In the five years since we set our environmental targets, we have cut water use in half, saving 1,630 million liters. If this volume of water were held in 0.5 liter bottles laid end-to-end, they would circle the earth 17 times.
Our water use efficiency – the amount of water we use per unit of output produced – improved by 9% against fiscal 2010 and has improved by 35% over five years, beating our target of a 15% reduction. A combination of better operating discipline, water conservation measures, new water-efficient equipment and advanced water recycling systems has delivered the improved performance.
Water is a key ingredient in our products and is also used to process alcohol, for example in fermentation and distilling, as well as for cleaning. These other uses often result in wastewater discharges and reducing the impact of these effluents, both in terms of reducing their volume and improving wastewater quality, are among our top priorities.
One method is to find a beneficial use for wastewater, such as for irrigation or as fertilizer to improve crop production. Almost 20% of our wastewater is used in this way and the remainder of our wastewater is discharged to municipal wastewater facilities or, after treatment, to local water courses. We are seeking to continually improve the quality of our wastewater by reducing elements such as biochemical oxygen demand (BOD) and total suspended solids (TSS). Our first priority is on direct effluent discharges which are treated on-site and then released directly into local water courses. In fiscal 2011, our wastewater discharges included 7,800 tonnes of BOD and 3,600 tonnes of TSS.
We have completed five years of impressive reductions in energy use with a further 5% reduction in fiscal 2011 compared to fiscal 2010. Our five-year trend since fiscal 2006 shows a drop in energy use of 29%.
Energy efficiency improved by 7% year-on-year and we have surpassed our five-year target to improve energy efficiency by 12%, delivering a 28% improvement since fiscal 2006. Similar to our water use efficiency, this has been achieved through better operating discipline, conservation measures and installing new, more efficient equipment and energy recovery systems.
Bacardi Limited tracks its energy performance based on the total primary energy consumed at our production facilities. Primary energy consumed includes the fuel used directly at our sites plus an estimate of the fuel used to produce the electricity used at our sites. For fiscal 2011, we estimate that we saved 110 Giga-Joules (GJ) of primary energy through conservation measures.
Our improvement in energy use in fiscal 2011 was accompanied by greater use of renewable energy and we reduced our dependence on fossil fuels by 8%.
Since fiscal 2006, we have increased the use of renewable fuels (mainly biogas) from 10% to 17%, a 60% improvement. Renewable electricity use increased from zero in 2006 to 16% during fiscal 2011 as our Italian operations completed their switch to hydroelectric power and wind turbines installed in fiscal 2010 came on line in Puerto Rico. Our total primary energy use for fuel and electricity is now made up of 16% renewable sources, up from 7% in fiscal 2006.
Bacardi Limited continues to reduce greenhouse gas (GHG) emissions through improved energy efficiency and shifting to lower-carbon fuels or renewable energy sources. Although we did not set a five-year target for GHG emissions, we anticipated reductions of 12-15%, in line with our energy efficiency target and the shift to renewable energy sources.
In fiscal 2011, we reduced our total GHG emissions by 7% year-on-year and have significantly outpaced our anticipated five-year reduction with a 37% drop since fiscal 2006. This equates to a reduction of 52,700 tonnes in fiscal 2011 compared with 2006.
Our GHG intensity – the quantity of GHG emissions per unit of production – has followed a similar trend. During fiscal 2011, GHG intensity improved by 9% and over five years we have reduced GHG intensity by 31%.
While we have actively tracked our performance in GHG emissions from our production activities for several years, we have started to compile our GHG emissions inventory for the offices that we operate. Further, we have also started to collect data for third-party activities that we do not directly control, but have significant influence over, such as business travel and dedicated transport and production activities conducted exclusively for Bacardi Limited. Currently emissions for business travel by rail and car and for contract transport are estimated.
Including electricity use at larger offices (25 people or more), we estimate our total GHG emissions from direct and indirect sources including offices to be 98,000 tonnes.
For activities that we do not directly control, we calculate that 12,000 tonnes of GHG emissions resulted from bulk transport. For business travel by air, we estimate GHG emissions of 10,000 tonnes. Data on emissions from business transport by rail and car, and for contract production are not yet available. We estimate that we reduced GHG emissions by 5,600 tonnes in fiscal 2011 through conservation and renewable energy projects. This reduction equates to taking 1,418 cars off the road*.
* Source: 2011 Guidelines to DEFRA/DECC GHG Conversion Factors for Company Reporting, assumes 12,000 miles per year, average car, fuel unknown.
Bacardi Limited generates primarily non-hazardous waste, most of which is the residue from our agricultural ingredients. Most of our waste is recycled, reused or recovered for beneficial use. For example, our site in Switzerland converts spent botanicals into pellets which are used by local farmers as fertilizer. At our Aberfeldy distillery a by-product known as pot ale is converted into a syrup which is sold as animal feed. Glass and paper are also recycled.
In fiscal 2011, we generated 133,320 tonnes of non-hazardous waste, down from 152,528 tonnes in fiscal 2010, a 12.6% reduction. Hazardous waste, much of which is waste alcohol, amounted to 37 tonnes in fiscal 2011, equivalent to 0.03% of our total waste production. Hazardous waste production was down 15.9% from 44 tonnes in fiscal 2010.
We continued to improve our safety record in production facilities, achieving our best ever lost time accident rate at 4.9 lost time accidents per million worked hours, easily exceeding our target of 6.0 accidents per million hours worked. This represents a 13% improvement over fiscal year 2010 and a 63% improvement over the past five years.
Our lost time accident reporting currently covers all manufacturing sites. We will improve our reporting for fiscal 2012 by including our non-manufacturing sites.
We have established and are rolling out globally a behavioral safety program which helps sites to improve their safety culture. By 2015, 100% of our manufacturing sites will have implemented the safety behavioral program.
Our absence rate remained static in fiscal 2011 at 2.4%.