How we measure our performance

Bacardi measures performance in two ways: absolute totals and efficiency metrics. Absolute measures are straightforward – for example, total quantity of water consumed. Efficiency metrics normalize these absolute totals against an appropriate business output – for example, water used per unit of product manufactured.

Bacardi Environmental Sustainability Tracking (BEST) uses a common accounting practice – flexible budgeting – to measure the performance in our reporting year against our base year. Full details of this approach are described in our 2013 report. In addition, we report on indicators from the Global Reporting Initiative G4 standards. Moving forward we will look to the UN Sustainable Development Goals and the Paris Agreement (COP21) targets to ensure we appropriately measure in accordance with these international standards.

Our targets are based on improvements in our performance against our efficiency index. These have been restated as required by the Greenhouse Gas Protocol published by the World Resources Institute and World Business Council for Sustainable Development, to reflect changes in the business, such as closures. Absolute baselines for all measures were established in FY06. We have not restated our absolute baselines and therefore do not make any claims based on absolute improvements against our baselines. As we develop our next cycle of long term targets during FY18 we intend to develop absolute as well as efficiency improvement targets.

Restatements: Base year figures, and those from previous reporting years, are sometimes recalculated to reflect significant changes within the Company (e.g. acquisitions, divestments, etc.). During FY17 we experienced some structural changes, including the addition of our new production site at Laverstoke, UK, and the consolidation of other manufacturing operations. Recalculation was done in accordance with protocols established by the World Resources Institute and World Business Council for Sustainable Development, and Beverage Industry Environmental Roundtable (BIER) guidance documents. In addition, emission calculation for fuel and electricity are recalculated, based on the latest emission factors (e.g. International Energy Agency).

Water

Water Use

Our total water used in FY17, measured by the efficiency index, was 0.2% better than FY16. This represents an overall improvement on our water use efficiency index of 46.5% vs. FY06. Absolute water use was down 15.9%, mostly due to consolidation of manufacturing activities.

Action Plans are in place at each of our manufacturing sites to continue to improve our water use efficiency.

Water Discharge

We manage used process water from our facilities in three ways:

  1. Direct discharges of treated wastewater to local bodies of water following onsite treatment (64 percent)
  2. Indirect discharges of treated wastewater to municipal treatment facilities (29 percent)
  3. Beneficial land application, including irrigation and fertilizer to improve crop production (in countries where it is permitted) (7 percent)

Of the total water released by our production facilities, 1,106,290 cubic meters was discharged as wastewater and 78,784 cubic meters was applied to cropland as a fertilizer or for irrigation. The water that is applied to land for beneficial reuse is returned to the crops that provide our raw feedstock to make spirits in countries where regulatory authorities permit.

Changes in the production mix and manufacturing consolidations in FY17 affected water discharge in the same way as water use.

Waste

Waste Management

In FY17:

• Only 0.35% of total waste was sent to landfill

• 11 manufacturing sites have achieved Zero Waste to Landfill

By characterizing the different waste streams, we’ve identified opportunities focusing on reduction at the source and then followed by reuse/recycling options. We are building on progress at our production sites to reduce landfill waste, and plan to work more closely with supply partners to ensure that all the packaging we receive can be recycled.

Energy

Energy Use

• 48.8% improvement in non-renewable energy intensity index since FY06

• 4.8% improvement on total energy intensity index since FY16

• Greatest improvements achieved in direct energy, by switching to renewable fuel sources (e.g. biomass boilers)

Renewable energy

In FY17, 38% of electricity was purchased through renewable contracts and 40% of fuel was from renewable sources. The overall proportion of renewable energy increased from 37% in FY16 to 40% in FY17.


Contract green electricity and wind power includes only that from dedicated contract suppliers. Grid electricity includes all forms of renewable and non-renewable energy on the national grids.

Emissions

Long term target – Reduce total GHG emissions intensity index by 50% versus FY06 by end of 2017.

Current status – Total GHG emissions intensity index for FY17 is 54.7% lower than FY06.

In FY17:

  • GHG absolute emissions (Direct and Indirect) reduced 16% versus FY16
  • Direct GHG emissions reduced 14% vs. FY16
  • Indirect GHG emissions (market-based) reduced 23% vs. FY16

Significant reduction achieved on emission of conventional pollutants by increasing the use of renewable energy. By maximizing the use of biogas, and the installation of biomass boilers, we reduced the use of fossil fuels responsible for these emissions.