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).
We manage used process water from our facilities in three ways:
- Direct discharges of treated wastewater to local bodies of water following onsite treatment (64 percent)
- Indirect discharges of treated wastewater to municipal treatment facilities (29 percent)
- 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.
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.