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 six Key Performance Indicators (KPIs) for Environment, Health & Safety (EHS) initiatives.

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.

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

In fiscal 2010, total water consumption reduced by 27.3% over the previous year and by 41.4% over the past four years. Twenty percent of the drop in 2010 is due to improved water use efficiency and the remainder is due to increased outsourcing. The water saved over the past four years is more than 1.35 billion liters, a quantity that if shipped by rail would require a train more than 217km long.

Water use efficiency, that is the amount of water we use per unit of output, improved by 8.6% over the previous year, and by 17.4% over the past four years. This means we have already exceeded our five-year target of a 15% reduction.

We have achieved this by encouraging a sharper focus in this area. Sites have responded by a combination of better operating discipline and conservation measures, as well as by installing new water-efficient equipment.

Energy use

Our total energy use reduced by 11.3% over the previous year and by 19.9% over the past four years.

To evaluate our progress on total energy use, we must calculate the total fuel we have used. Our working assumption is that our electric power is generated from burning fuel with a conversion efficiency of 33.3% (the approximate international average). In the future, we plan to focus more on carbon emissions since the data are more readily available.

Our energy efficiency improved by 5.9% over the previous year, and by 16.6% over the past four years.

We have now surpassed our five-year target of 12% improvement. Similarly 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.

Energy Sources

The push to increase our use of renewable energy continues to show good progress. The overall use of renewable fuel (biogas) as a percentage of total fuel dropped slightly in fiscal 2010, but our use of renewable electricity increased significantly thanks to a new contract for hydroelectric power for our operations in Italy. As a result, the portion of total renewable energy (electricity and fuels) currently being used by our manufacturing facilities is 30% more than in fiscal 2009 and 70% higher than in fiscal 2006.

Greenhouse Gasses

Bacardi continues to reduce greenhouse gas (GHG) emissions through improved energy efficiency, shifting to fuels with lower carbon emissions and an increased reliance on renewable energy. In fiscal 2010, we reduced our total GHG emissions by 18.9% from the previous year. Over the past four years we have reduced our GHG emissions by 30.6%. Our GHG intensity – that is the quantity of GHG emissions per unit of production – did almost as well.

Our GHG intensity reduced by 9.2% over the previous year. Over the past four years, we have reduced our GHG intensity by 25.1%.

While we did not set a five-year target for GHG emissions, we anticipated that we could achieve a reduction in GHG intensity commensurate with our energy efficiency target, i.e., a five-year improvement of about 12%. We have exceeded that target, achieving more than twice that percentage in only four years.

Lost time accident rate

We continue to improve our safety record, lowering our lost time accident rate (LTAR) to 5.6 accidents per million worked hours, a 16% improvement over the previous year (6.7). We are therefore ahead of our 2011 target of a rate of 6.0. We have achieved this by establishing safer working methods through strict adherence to our Codes of Practice, by including safety in the performance evaluations of all Operations employees and through the increased operational discipline required by our management systems under OHSAS 18001. However, the LTAR is dynamic, so we will continue to focus on this key area for the business.

Absence Rate

We continue to focus on improving the reporting accuracy of absence rate. We now believe that operating sites are doing a good job of reporting absence as we define this metric. Recent results show an increase in the reported rate, which likely reflects more complete reporting of absence rather than an actual increase in absences. No five-year target was established for this metric.