The following is the Corporate Responsibility Report as published in the 2011 Annual Report of C&C Group plc
C&C regards sustainability as an obligation to its stakeholders – shareholders, employees, suppliers, customers and the general public. Conducting business in a sustainable way is good for the company, the community and the environment – it is more cost effective, delivers added value and stimulates innovation and creativity.
Our goal is not only to achieve sustainability, but also to maintain and improve it in every area of our business. This makes good commercial sense, regardless of what is happening in the economic environment.
C&C’s Sustainability Programme focuses on a number of key areas, specifically the management and reduction of:
- Energy
- Packaging
- Waste
- Water
- Carbon consumption
Energy
Continuous, ongoing energy reduction and improvement has been our goal. In June 2010, the Group’s Clonmel plant gained accreditation to the Irish Energy Standard IS EN 16001:2009. This ensures a systematic management approach to improving energy performance continuously. This was achieved on the back of our three year agreement with the Sustainable Energy Authority of Ireland, which commenced in 2008. The objective is to reduce energy consumption across the business and, over the last three years, the energy initiatives implemented have resulted in a reduction of 23% in energy, usage. Targets are in place to make significant further reductions in the year ahead.
The Group’s Wellpark brewery is actively participating in the brewing sector’s Industrial Energy Efficiency Accelerator. This pilot programme is being completed with The Carbon Trust – a UK Government agency. This will ensure that Wellpark is well placed to recognise and implement early opportunities for best practice. The brewery continues to meet its regulatory targets, operating within the European Union Emissions Trading Scheme.
Packaging
The light-weighting of packaging continued at Clonmel during the year ended 28 February 2011. These are important initiatives that deliver benefits across many areas of the business, from source materials to transportation. The results deliver both cost and environmental benefits.
Initiatives included:
- a 6% reduction in weight of paper labels.
- a 10% reduction in crown metal usage.
- a 14% reduction in the weight of the Litre bottle.
- a 7% reduction in bottle multipack weight.
- can line shrinkwrap was down-gauged, resulting in a 20% reduction in usage.
- the weight of the Bulmers returnable pint bottle was reduced from 510g to 438g – a 14% reduction.
- by adding an extra layer to incoming pallets, 16% more pint bottles can be added to each pallet. This has allowed us to reduce the number of truck journeys, leading to a commensurate reduction in transport costs.
The major packaging resource for Tennent’s Lager is the aluminium can. In the last six years a can light-weighting programme has been undertaken in partnership with suppliers. Four reductions in can wall thickness have been achieved in this period, significantly reducing the carbon footprint of the product.
Our Shepton cider mill has also delivered reductions: PET bottle weight has been reduced, cans have been down-gauged and trials to reduce the volume of shrink wrap are ongoing.
“ We continue to find ways to reduce weight and waste. ”
Waste
As a commercial business, we are aware of the levels of waste that we produce, and how we can reduce them. Our ultimate goal is to recycle or recover for reuse 100% of our waste products.
In calendar 2010, we achieved a figure of 99.2% recovery and recycling at our Clonmel site. This meant that only 0.8% of waste generated on site was sent to landfill, which is an impressive statistic. There is a closed loop recycling of glass and aluminium, while 100% of all cardboard and plastic are recycled.
At our Wellpark site we continue to build on the ‘principle of 5S’, the lean manufacturing principle, with a number of workshops being held this year for employees to build awareness. In addition we have invested in recycling equipment within our packaging operation to ensure we recycle cans, plastic film, paper and cardboard waste. In calendar 2010 can wastage was reduced by 10%.
At our Shepton site, waste disposal has fallen year-on-year as efforts to recycle and re-use materials become more successful.
Water
An aquifer protection programme has been implemented in Clonmel over recent years, resulting in successful registration to the IS 432 :2005 Spring Water standard. As a result of improved management of our natural resources we have achieved an 11% reduction in water usage since 2008. Water consumption at Clonmel in calendar 2010 was 3.07 hectolitres of water per hectolitre of cider produced. This is significantly below the recognised global brewing benchmark of 4 hl/hl.
At our Wellpark brewery, water consumption measures 3.6hl/hl, which is also significantly below the recognised global brewing benchmark of 4 hl/hl. In 2010, our focus and investment has been on brewery condensate recovery, which will help to minimise both water and energy consumption.
At Shepton, the water efficiency ratio on site continues to be in-line with industry standards. Water re-use projects, such as reclaiming pasteuriser, bottle rinse water, fruit processing and minimisation projects on plant and process cleaning systems, have helped to reduce our use of mains water by 22%, with minimal capital outlay. They have also resulted in a substantial reduction in effluent discharge.
Tennent’s once again operated ‘Be Chilled’ at ‘T in the Park’ – a facility for consumers camping at the festival to pre-order and collect chilled Tennent’s Lager to encourage trading down.
Carbon
Our Carbon Reduction Team continues to focus on achievable carbon reductions, specifically at our production facilities.
C&C Group has continued to measure its corporate and product carbon footprint, using the Greenhouse Gas Protocol (GHG Protocol). This is the most widely used international accounting tool to enable governments and business leaders to understand, quantify and manage greenhouse gas emissions. Our carbon footprint figures in calendar 2010 included the Wellpark brewery and in 2011 will be extended to encompass the Shepton cider mill.
At Clonmel the result of our Sustainability Programme over the last two years has been a 10% year on year reduction in carbon emissions intensity. This reduction comes from four core areas: gas and electricity reduction, process efficiency, improved transport efficiency and packaging optimisation.
The Carbon Disclosure Project (CDP) is an independent not-for-profit organisation which holds the largest database of primary corporate climate change information in the world. The CDP was launched in Ireland during 2009, and C&C Group was one of the first companies to be invited to make a submission to the project. A corporate and product carbon footprint analysis was updated and submitted by us in calendar 2010. It included our Clonmel and Wellpark operations. In 2011, C&C Group will again participate in the CDP and we will also include our operations at Shepton.
The CRC Energy Efficiency Scheme, previously known as the Carbon Reduction Commitment (CRC), is an energy saving and carbon emissions reduction scheme for the UK. It is aimed at improving energy efficiency and therefore cutting CO2 emissions in large public and private sector organisations. The scheme features a range of reputational, behavioural and financial drivers which seek to encourage organisations to develop energy management strategies, thereby promoting a better understanding of energy usage. This is a rigorous and detailed process, and, during 2010, C&C Group registered for the scheme for all operations in the UK.
Finally it should be noted that our orchards and those of our suppliers absorb the equivalent of 40% of our carbon output.
Green Production
We have continued the Green Apple Awards, a biennial competition open to all contracted growers who supply apples to the cider mill at Shepton. In the contracted orchards, growers are encouraged to practise Integrated Pest Management (IPM). This involves the use of carefully timed sprays to minimise usage and the impact on beneficial insects. Biodiversity is encouraged. We work closely with the Farming and Wildlife Group at Somerset County Council.
C&C Group was awarded 1st place in the Green Private Sector Procurement category of the 2010 Irish National Procurement Awards. This was in recognition of the very significant carbon reduction achieved when we reduced the glass weight in our cider bottles at Clonmel.
Community Engagement
Bulmers employs more than 200 people in the greater Clonmel region in Co. Tipperary and in Dublin. With generations of families having worked in the original or present Clonmel plant, Bulmers remains close to the heart of the town. Bulmers continues to support local community initiatives and festivals in Clonmel through its sponsorship programme, thereby developing strong relations with local businesses, media and the community.
Tennent’s investment in Scottish good causes was enhanced in the summer of 2010 with support for the Caledonian Challenge. This charity walk from Fort William to Tyndrum, involving almost 1,000 participants, raised over £1 million for Scottish charities.
Tennent’s has introduced a dedicated Training Academy, with the support of the Scottish government. The academy is located at Wellpark Brewery, and has been fully kitted out to train the next generation of pub owners, bar staff and managers. It provides opportunities to people who wish to become involved in the licensed trade, through training and education.
Tennent’s is now sourcing 75% of its malt requirements from Scottish farmers. Not only does this support the Scottish farming industry, it also reduces the transport carbon footprint. The aim is to source 100% of malt from Scotland by 2012.
Our Shepton cider mill is a large employer in the west of England. We actively support local and regional community initiatives, through sponsorship, donations, hospitality and events. This continues to build strong relationships with local people, local businesses, key stakeholders and media in the West Country.
C&C is proposing to establish a scholarship fund at University College Dublin, which, in honour of the Company’s former chairman, will be known as the Tony O’Brien Scholarship Fund. The scholarships will support suitably qualified students from the CBS Secondary School in his home town of Kilkenny City who are undertaking degree courses in commerce or economics at UCD.
Responsible Drinking
Portman Group
C&C Group is a member of the Portman Group, the industry body set up to promote responsible drinking. The Portman Code of Practice seeks to ensure that alcohol is promoted in a socially responsible manner and only to those over 18. The Code applies to the naming, packaging and promotional material and activity of all pre-packaged alcoholic drinks which are marketed for sale and consumption in the UK. We include in this all advertising, the brand name, product descriptor, packaging, print media, internet and other new media, sponsorships, promotions (on- and off-trade), labelling and point of sale materials.
Public Health Responsibility Deal
In March 2011, C&C Group joined with 170 companies to sign up to the UK Coalition Governments “Public Health Responsibility Deal” with the aim of working in partnership with Government and other organisations to improve public health through their influence over food, alcohol, physical activity and health in the workplace. This long term programme sees companies commit and report on a series of pledges aimed at tackling alcohol misuse.
UK Minimum Juice Content and Minimum Pricing
The definition of cider for UK excise duty purposes was amended with effect from 1 September 2010, and included the requirement for minimum levels of apple or pear juice. The level was set at a minimum of 35% of juice at a specific gravity of at least 1.033 in both the fermentation and final packed product. Products whose juice content was below the threshold, typically the ‘value’ brands, became subject to a higher level of duty.
The Scottish Government has made proposals to introduce minimum pricing for alcohol. We support these measures so long as they are fair, proportionate and part of an overall programme to reduce the abuse of alcohol.
Responsible leisure initiatives
Tennent’s has continued its ongoing commitment to responsible drinking messages throughout calendar 2010. ‘T in the Park’, where Tennent’s is the founding partner, leads the way working with government and others to get responsibility messages across. The festival was once again a platform to deliver Responsible Drinking and Environmental messaging, both at the festival and across the event communications campaign. This included placing information about alcohol units on 400,000 event cups. We also applied a nationally recognized scheme that asks for proof of age if the consumer appears under 21.
Tennent’s donated 50% of contracted advertising space on the large screens by the two main stages and on the outside back cover in the Official Event Programme to Drinkaware Trust and Department of Health campaigns. Tennent’s once again operated ‘Be Chilled’ at ‘T in the Park’ – a facility for consumers camping at the festival to pre-order and collect chilled Tennent’s Lager to encourage trading down; 4-packs were the most popular pack size over the weekend. The initiative was promoted in advance of the weekend, with all communications carrying responsible drinking messages including emphasis on eating (Healthy T) and alternating drinks with water. T in the Park provides free drinking water across the festival site via stand-pipes.
Tennent’s commenced a multi-million pound sponsorship of Celtic and Rangers in July 2010, using the mass appeal of the Old Firm to support the clubs’ charitable causes, UEFA campaigns and Responsible Drinking initiatives. In September 2010, Tennent’s donated advertising space in the club magazines and match programmes to Drinkaware’s “Why Let Good Times Go Bad?” campaign. Tennent’s also supported UEFA’s Respect campaign with a donation of branded Rangers shirts for the European Champions League group match against Valencia in Spain.
Employees
Our employees are fundamental to the success of our business and we will continue to invest in attracting, developing, engaging, and rewarding employees with the skills we require.
This year our employee priorities have focused on ensuring that we create the right structure, environment and support to enable each individual to make a valuable contribution.
In 2010 a significant amount of restructuring activity was undertaken; this included the integration of the Magners and Gaymers businesses in Great Britain, the delivery of a new IT platform, the exit from the transitional service arrangements provided to us by AB InBev, a cost reduction programme in the Republic of Ireland and the creation of a customer contact centre and account services team in Wellpark Brewery. In addition, the decentralised business unit philosophy was finalised across the business and, in tandem with this, the Supply division was functionalised. The delivery of this level of change with minimal business disruption was an outstanding achievement and a reflection of the combined effort made by all of our employees.
In 2010 for the first time we launched a business wide employee survey and achieved an employee response rate in excess of 80%. Each business area undertook employee feedback sessions and teams across the business identified actions to improve effectiveness. A further survey will be held this year.
The acquisitions made in 2009 and 2010 resulted in differences across our enlarged employment base with respect to both the elements and levels of reward and benefits. In 2010 we undertook a review of this area and identified a number of areas to harmonise in order to apply some consistent principles.
We remain committed to investing in developing our employees. In 2010 we undertook a blend of in-role learning, secondments, placements, coaching and development programmes across the business.