We track our performance both globally and locally through the use of five Key Performance Indicators (KPIs) for EHS issues:

• Water use
• Energy use
• Energy sources
• Greenhouse gas emissions
• Lost time accident rate
• Absenteeism

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.

Scope

The environmental, health and safety performance information has been compiled from returns 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.

General

Tracking our overall efficiency in reducing the consumption of key resources (e.g., energy, water) or the generation of greenhouse gases is a complex process because we distill and bottle a variety of products. There are significant differences between the copper pot stills used to make Scotch whisky and the column stills used to make rum. And sometimes we distill product but do not bottle it right away, for example when laying down rum for aging.

So measuring our efficiency per bottle produced will not therefore provide us with an accurate picture of our progress. Our solution is to use an index which is weighted by activity and product mix so we can track our underlying performance in the use of resources. More detail on the index is available here.

Water Use

In fiscal 2009, total water used to manufacture our products decreased 4.0% from the previous year, to 2.6 million m3. Total water used has been reduced by 19.3% over the past three years, enough to fill 250 Olympic swimming pools. Water use efficiency, the amount of water we use per unit of output, improved by 2.8% over fiscal 2008, and has improved by 9.5% over the past three years – on track to achieve our five-year target of 15% water use efficiency reduction by 2011.

Energy Use

To calculate the total energy used by our production facilities we combine the energy that we derive from fuels consumed on site (e.g., fuel oil, natural gas) with electricity that we purchase. We estimate the amount of fuel the power companies have consumed to generate electricity for our facilities by dividing the quantity of electricity we consume by the average efficiency of the power industry. In fiscal 2009, we reduced our total energy used by 6.1% from the previous year, down to 2,225,000 Giga-Joules. Our overall energy use has reduced by 9.2% over the past three years. This improvement has been the result of considerable energy efficiency gains in our production processes, particularly in our distilleries. Energy efficiency was 7.2% better in fiscal 2009 than in the previous year and has improved by 11.2% over the past three years, well ahead of schedule to achieve our five-year target of 12% improvement by 2011.

Energy Sources

Bacardi tracks the amount of both indirect and direct energy used by its production operations. Indirect energy (purchased electricity) used has dropped by 22.8% in three years, to 235,000 GJ last year. We have reduced our use of fuel oils (down by 12.5% in the last three years) using more cleaner-burning fuels such as natural gas and liquefied petroleum gas (LPG) (up 25%). We used 18.8% more renewable biogas last year, following investments in a new boiler and power generator at our Cataño, Puerto Rico, distillery. (During start-up of this new system, the plant had to rely on its oil-fired boilers so our use of renewable energy dipped in fiscal 2008.) In 2009, 12.6% of our direct energy requirements were provided from renewable sources – a 20% improvement in the last three years – helping us to meet our target for 2011 two years ahead of schedule. All these improvements result in lower greenhouse gas emissions.

Greenhouse Gases

In fiscal 2009, we reduced our greenhouse gas emissions (GHGs) by 9.2% over the previous year and have achieved a three-year reduction of 14.5%. Our total CO2 equivalent emissions were 121,598 tonnes in 2009 down from 142,212 tonnes in 2006. Our fiscal 2009 GHG emissions per unit of production improved by 11.1% over 2008, and by 17.5% over the last three years.

Lost Time Accident Rate (LTAR)

Caring for our people is fundamental to the way we do business. Bacardi has continued to stress health and safety in the workplace and fiscal 2009 proved to be another year of improvement. We reduced our LTAR by 28% over the previous year and have a three-year improvement record of 49%. We are well on our way to achieving our fiscal 2011 target of fewer than 6.0 lost time accidents per million worked hours.

Absence Rate

In fiscal 2009, our absence rate, which is defined as the percentage of absence on all working days, increased from 2.0% to 2.2%, but still remains below our fiscal 2007 rate of 2.4%. The quality of reporting in fiscal 2009 considerably improved over previous years and much of the increase in the rate may be the result of better reporting. We have not yet established improvement targets for this metric and will do so only when we have improved our reporting systems.