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Bacardi Sustainability Report: GHGs Up, Water Intensity Down

Bacardi report energy efficiencyBacardi Limited has released its 2013 Corporate Responsibility Report. Highlights include:

GHGs and other emissions

  • At the end of FY12, a biogas reactor failed prematurely at Bacardi’s largest distillery in Puerto Rico.
  • The company says this failure was largely responsible for a rise in its GHG intensity. The site had to switch mostly to heavy fuel oil for its steam and electricity needs.
  • Emissions per unit of production rose 11 percent from FY12 to FY13 – to a level not seen for four years.
  • Sulfur dioxide, nitrogen oxides and particulate matter also increased by nearly 12 percent.
  • But the company notes that its FY13 GHG efficiency score is 26.4 percent better than that of its fiscal 2006 base year.
  • It is targeting a 1 percent improvement in non-renewable energy efficiency compared with FY13; and a 50 percent reduction in GHG emissions by 2017, from a 2006 baseline.
  • It is planning new biomass boilers for its tequila distillery in Arandas, Mexico and its Scotch whisky distillery at Aberfeldy, Scotland, and “remedial actions” are in place to reduce GHG emissions at the Puerto Rico distillery.

Energy

  • The biogas reactor failure required the company to lower production because of reduced wastewater treatment capacity. This in turn reduced energy efficiency.
  • Non-renewable energy use per unit of production rose from 68.7 in FY12 on Bacardi’s index, using an FY06 base year (see Data, below) to 74.7 in FY13.
  • But the company cut energy use by more than 25 percent since 2006.

Water

  • In 2013 Bacardi had a target of a 1 percent improvement in water use efficiency.
  • It more than beat this goal, with a 6.3 percent improvement in efficiency. Total water use fell by 9.6 percent, reflecting lower production.
  • It cut water use by 54 percent since 2006.
  • The company attributes water reductions to “better operating discipline, water conservation measures, new water-efficient equipment and advanced water recycling systems.”
  • Bacardi is targeting a 1 percent cut in water volume used in production sites, from FY13 to FY14; and a 55 percent cut in water use from FY06 to FY17.
  • In FY13, the quality of direct treated water discharges improved by 20 percent versus FY12, mostly due to better treatment techniques, the company says.
  • It aims to reduce wastewater loadings by 85 percent by 2022, from a 2006 baseline.

Waste

  • Total waste decreased by 1.5 percent in FY13.
  • 98.6 percent of Bacardi waste is recycled, reused or recovered.
  • In 2017 the company is aiming for zero solid waste to landfill from production sites.

Packaging

  • In the three years leading to FY14, Bacardi saved more than $5 million per year by “right-weighting” its packaging.
  • It cut packaging weight by 7.1 percent since 2008.
  • In FY14 it is aiming to cut overall packaging weight 0.5 percent per nine-liter case, versus 2008.
  • It is also aiming to cut packaging weight 10 percent by 2017, 15 percent by 2022 and 30 percent by 2032, all against a 2008 baseline.

Sourcing

  • The company has a goal of purchasing 100 percent of sugarcane-derived products from certified sustainable sources by 2022.
  • Bacardi says it is on track to source more than 40 percent of sugarcane-derived products from sustainable sources by 2017.

Spills, fines and prosecutions

  • In FY13, Bacardi sites reported 42 environmental releases, 41 of them minor.
  • One of the 42 incidents involved the accidental release of wastewater from a holding tank. The spilled wastewater was entirely contained within secondary containment systems, and no material was released to the local environment.
  • Bacardi says it had no fines above $5,000 during FY13.
  • But it is in talks with the EPA concerning wastewater discharge levels. The company hopes to conclude these talks within 12 months.

Data and reporting

  • The report details the 2013 fiscal year, from April 1, 2012 to March 31, 2013.
  • Bacardi uses an accounting practice called flexible budgeting to measure performance.

Takeaway: The comprehensive report clearly outlines progress to date, reasons for falling short of past goals, targets for the future, and strategies for environmental improvements.

Coverage of past Bacardi reports:

2012

2011

2010

Bacardi report water supply Bacardi report water efficiency Bacardi report waset Bacardi report total water Bacardi report total energy Bacardi report nonrenewable energy Bacardi report 2013 GHG intensity

 

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