REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER NATURAL NATURAL CAPITAL CONTINUED Initiatives include: • ensuring that the majority of the packaging we produce is reusable, compostable or recyclable (currently 96%). • retrieving packaging from the market. Currently around 45% of all plastic packaging we put into the market is collected back and recycled. Our goal is to reach the point where 100%of our primary packaging can be collected back, recycled or reused Lightweighting packaging. • during the year, we changed to a lighter bottle design, reducing the amount of PET used by 2% to 6% on larger bottle sizes and around 10% to 20% on smaller units; • building relationships with recyclers and collectors to improve monitoring, collection and recycling; • working with various stakeholders to improve the PET collection circuit in public areas including by sponsoring collection bins, supporting local partners to increase waste collection, promoting innovative ways to increase recycling and upcycling, and partnering with eco-conscious social media influencers and NGOs that raise awareness about recycling; • working with The Coca-Cola Company on recycled PET (rPET) standards; and • investigating local solutions and local partnerships to promote plastic collection and recycling on Réunion Island. In 2022, 1 251 tonnes of post-consumer PET bottle packaging were collected in collaboration with local producers and collectors (2021: 1 349 tonnes). This plastic is exported for recycling and in 2022, PhoenixBev paid MUR 11.3 million to recyclers for this purpose (2021: MUR 11.4 million). PhoenixBev partners with other IBL group companies and the Mauritius Port Authority to assist in cleaning up the Caudan Harbour. In the year to 30 June 2022 this initiative collected seven tonnes of waste, of which 57% was plastic waste (including PET, HDPE and other forms of plastic). Waste management Our main waste streams include effluent water, emissions to air and solid waste. We continually seek to identify ways to reduce waste produced, with a focus on recycling, reuse and valorisation to reduce waste to landfill. A waste dashboard system accurately captures solid waste data to improve monitoring of this waste stream. Primary waste streams Effluents discharged Emissions to air Solid waste Wastewater plants at the operations treat wastewater, our main form of effluent, to within the standards required by the Wastewater Management Authority (WMA) discharge permits. The cleaned water is discharged into the public sewerage network. In 2022, 525 199 m3 of processed effluents were discharged (2021: 342 074 m3). Gaseous emissions from the thermal energy plants at the production sites are collected and discharged via gas stacks. These emissions are within the permissible standards set out in the Environment Protection (Standards for Air) Regulations 1998. PhoenixBev’s emissions standards meet the requirements of our partnership agreement with The Coca-Cola Company, which are more stringent than the proposed new emission standards. PhoenixBev has an ongoing focus on minimising waste to landfill through our policy of “Reduce, Reuse & Recycle”, which aligns with SDGs 9 and 12. Waste is segregated at the production facilities to increase recycling or re-use of waste streams. Recycle Reuse Hazardous waste Electronic waste and all PET/LDPE/HDPE plastic waste are processed for recycling through exports channels. Cans, cartons and cardboards are sent to a local recycling partner. Partnerships to reuse waste include: – Coal ash from the Limonaderie is reused by an energy plant, diverting 230 tonnes of ash in 2022 (2021: 238 tonnes). – Approximately 6 000 tonnes a year of spent grain and yeast from the brewery goes to farms for deer feed and is included as an additive in animal feed. – Waste glass is sent to Beemanique Stone Crusher Limited to be included in high volume materials such as asphalt to make roads. Over 1 000 tonnes of waste glass a year could be reused in this way. Hazardous waste such as used oil, batteries and fluorescent lamps, is recorded in hazardous waste inventories. Used oil is recycled by an external company and other hazardous waste is disposed of at the PolyEco facility, which is contracted by the Ministry of Environment. Carbon emissions and energy PhoenixBev recognises the significant impact that climate change could have on our business and the countries in which we operate. Small island nations such as Mauritius and Réunion Island are particularly vulnerable to the consequences of climate change, which include rising sea levels, changing rainfall patterns and increased frequency and intensity of extreme weather events such as heavy rainfall, flash floods and cyclones. We are committed to reducing our carbon emissions to support the global response to global warming and are at an early stage of considering a formal climate change commitment. Our main source of carbon emissions is from energy use, including electricity from the public grid, coal and heavy fuel oil for heating in the production processes, and diesel and LPG for transport and logistics. Energy efficiency initiatives are included in the requirements for ISO 14001 certification and include the implementation of the Top 10 Energy Tools, which are currently at 60% completion. We have partnered with GreenYellow Indian Ocean to identify opportunities to save energy and GreenYellow has deployed energy efficiency and power reduction solutions at our operations. We continue to invest in upgrading and modernising our production, warehousing and distribution facilities. These enhancements improve efficiencies, ensure exceptional product quality, reduce our environmental impact and increase capacity for future demand. We installed overall equipment effectiveness (OEE) analysers in the brewery to improve production monitoring, trialled washable labels and upgraded measurement of dissolved oxygen in brewery process water and finished product. We are installing water chillers in the brewery to improve sealing during filling, which will also reduce water use. At the Limonaderie, we installed a solar system to preheat water feeding the chillers, reducing electricity use, our reliance on fossil fuels and our carbon footprint. The data we are gathering from this installation will guide the rollout of other possible installations at our facilities. We are running a pilot project with two electric delivery vehicles to assess the feasibility of replacing our current fleet with electric vehicles over short-to-medium term. We have also engaged experts to assess our water and energy use to inform an energy audit, carbon footprint calculation and improve wastewater management. 69 68 Phoenix Beverages Limited Integrated Report 2022 Phoenix Beverages Limited Integrated Report 2022
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