In 2016, Swire Beverages distributed beverages to a franchise population of over 470 million people. At the end of 2016, Swire Beverages had two wholly-owned franchise businesses, in Taiwan and the USA, and five majority-owned franchise businesses, in Hong Kong and in Fujian, Henan, Anhui and Shaanxi provinces in Mainland China. It had joint venture interests in three other franchises in Mainland China and an associate interest in a manufacturing company, Coca-Cola Bottlers Manufacturing Holdings Limited, which supplies still beverages to all Coca-Cola franchises in Mainland China.
HEALTH & SAFETY
HEALTH & SAFETY
Group Level Material Topics
Performance in relation to the material topic which is highly significant at a group level is shown below:
Water is the main ingredient of Swire Beverages’ products and is used in their manufacture. It is a precious resource, but it is also a limited and stressed resource in areas where Swire Beverages operates. Water scarcity and the deterioration of the quality of our water sources can constrain production and increase costs and can adversely affect the communities in which Swire Beverages operates. Swire Beverages identifies ways to reduce water used in the production process and participates in educational and awareness programmes intended to contribute to sustainable use of water.
The company's water conservation goal is to return to communities and nature an amount of water equivalent to what we use in all of our beverages and their production.
Their water stewardship efforts are guided by commitments under the three guiding principles – "Reduce, Reuse, Replenish".
Reduce – Improving Plant Efficiencies
Since 2004, Swire Beverages has increased its water efficiency by 37%. In 2016, water efficiency (measured as the amount of water used to produce a litre of beverage) decreased slightly, from 1.74 litres to 1.81 litres. This reflected calibration of new production lines in Fuzhou, an increase in the frequency of new product trials and a slight increase in production of still products. Swire Beverages has a target to improve water efficiency by 25% between 2010 and 2020.
The company has invested in process optimisation and water saving technologies, including using dry lubricants instead of soapy water to lubricate bottle conveyors, using air for cleaning instead of water where possible and recovering water used to rinse containers.
Reuse – Treating and returning our wastewater
Swire Beverages complies with the wastewater standards of The Coca-Cola Company and of the areas in which it operates. The Coca-Cola Company requires treated water to be clean enough to support aquatic life.
Annual water savings of 500 million litres followed an evaluation of Swire Beverages' bottling plants' wastewater treatment operations in Mainland China with a view to minimising or eliminating discharges and optimising the reuse of water.
Replenish – Returning water to the environment
The global Coca-Cola system works towards replenishing the water used in its finished beverages through replenishment projects such as reforestation, protecting watersheds and river revitalisation. As part of this global approach, Swire Beverages, in partnership with the Coca-Cola system, has met its target of returning to the environment as much water as it uses by 2020 early. In 2016, Swire Beverages returned 353 million litres of clean water to the environment, equivalent to 6% of the water included in total sales volume.
With a view to achieving its replenishment target, Swire Beverages supports source water protection, sustainable agriculture, water and soil erosion control, wetland protection and recovery and water reuse. Swire Beverages' Zhengzhou bottling plant collaborated with the municipal government of Zhengzhou City and the United Nations Development Programme (UNDP) to reuse treated wastewater in a wetland in a park in the city. With the World Wildlife Fund (WWF) and the Xiamen government, Swire Coca-Cola Beverages Xiamen is building small wetland sites that will treat around 900,000 litres of sewage water per month. More information on Swire Beverages' replenishment projects can be found in the section on how we use and manage water responsibly.
In 2016, "Walk for Love" events hosted by Swire Coca-Cola Beverages Zhejiang, Xiamen and Guangdong raised over RMB6.8 million to buy water purification equipment for 33 schools, giving nearly 16,000 students access to clean drinking water every day. Over 108 million bottles of water were donated to people affected by disasters in Anhui, Fujian and Jiangsu provinces in Mainland China.
More information on sustainability matters related to the Beverages Division can be found in other sections of this report.