Energy and Climate
ENERGY AND CLIMATE
Our approach
CCA is a low energy intensive business, but as one of the largest beverage and food manufacturing companies in the Asia Pacific region, we’ve long been aware of the risks of climate change to the business, voluntarily reporting and identifying opportunities to reduce carbon emissions since 1999 in Australia under the Federal Government’s Greenhouse Challenge.
In Australia, CCA’s biggest market, the 2009 arrival of mandatory reporting of carbon emissions to the Federal Government, followed by the introduction of legislation for a carbon tax in late 2011, focused business attention on the implications of the tax and increasing costs of energy use and ways to mitigate against it.
CCA production facilities represent the bulk of our direct emissions so efficiency projects within our plants are a priority. However we also recognise we have responsibility for reducing the energy use and carbon emissions associated with the cold drink equipment – fridges and coolers – utilised by our customers to ensure consumers receive cold, refreshing beverages.
CCA is continuing to reduce carbon in its operations through efficiency measures.
The major energy focus includes:
- More sustainable packaging (a) the roll out of the $450 million bottle self-manufacture, or blow-fill technology across the Group which is delivering significant carbon reductions in PET plastic bottles because less PET resin is used, as well as the decrease in transportation of empty bottles from suppliers and (b) the pilot in Australia of PlantBottle, The Coca-Cola Company’s innovation in sustainable packaging, which is produced using up to 30 per cent plant-based materials.
- Fridge and cooler innovations which enable our customers to significantly reduce energy use and save costs, and customer engagement programs on cooler maintenance which, when maintained, can significantly reduce the amount of energy used.
- The development of systems to monitor and track environmental metrics, including energy, water and waste which identifies areas for improvement.
Internally CCA Australia has developed innovation awards, Innov8, which are seeing hundreds of ideas for sustainability and energy and water efficiency, many of which are implemented successfully.
Externally CCA reports its carbon emissions to a number of mandatory Government agencies and voluntary organisations.
Governance
CCA has developed business plans to manage the risks of climate change. Efficiencies in water, energy and raw materials are driven through the business across the Group and reported to the Compliance and Social Responsibility Committee of the Board.
Every CCA manufacturing facility across the Group records monthly environmental metric data including energy, water and waste and various levels of management have KPIs in performance plans related to energy usage and other environmental metrics.
Target levels are set for carbon emissions each year in grams of CO2 per finished beverage litre, and are set during business planning processes annually.
Various levels of management have KPIs in performance plans related to energy usage and other environmental metrics.
Energy Efficiency Opportunity (EEO) legislation requires CCA Australia to identify and assess energy saving opportunities with up to a four year payback across all controlling business groups using a whole of business approach and to an accuracy of ±30% for each identified opportunity.
CCA’s third public report under the Energy Efficiency Opportunities Act in 2010 saw the near completion and or completion of nearly 30% of all energy efficiency opportunities identified over the course of the program in 11 of CCA’s major Australian manufacturing sites covering the carbonated beverages, bottled water and food and services divisions. This has resulted in an estimated 94 TJ of energy savings per annum. Another 34% of the identified opportunities are either scheduled for implementation or further investigation.
CCA completed its first five year cycle of the EEO program in 2011. We are undertaking energy audits of manufacturing sites in 2011 and 2012 and will continue to seek new energy efficiency opportunities in cycle two which began in July 2011.
To find out more about EEO please visit www.energyefficiencyopportunities.com.au
Management
CCA sets internal energy reduction targets (measured as MJ/FBL produced or megajoules per finished beverage litres produced) and internal targets for reducing carbon emissions ratios across our product portfolio, which we measure as grams of carbon dioxide equivalent per finished beverage litres or gCO2-e/FBL produced). These targets are agreed internally and are an integral part of our annual business planning process.
Energy and carbon metrics for each of our manufacturing facilities (as with the other core metrics) are tracked using advanced monitoring technology. Results are presented to senior management on a monthly basis as a minimum as part of a Supply Chain balanced scorecard and every quarter to the CCA Board of Directors.
The scorecard performance for each state in Australia also forms the basis of a national competition for CCA’s “State of the Nation” award, where states compete against one another under the four categories of Environment, People, Customer Service and Business Results.
ENERGY USE RATIO (MJ/FBL) AND CARBON EMISSIONS RATIO AND (gCO2e/FBL) – CALENDAR YEAR REPORTING
Australia:
In 2010 the energy use ratio, measured in megajoules per litre of finished beverage, of beverage production in CCA’s biggest market, Australia, was 0.28 MJ/FBL. This was 3.4% decrease over 2009.
In 2011 YTD the energy use ratio stands at 0.34MJ/FBL for Australia. The increase is partly because of the reduction in beverage volume over the cooler east coast summer period and the introduction of blow-fill.
In 2010, the CO2-e emissions ratio (gCO2e/FBL) for Australia was 48.1gCO2e/FBL. This was a 2.6% decrease over 2009.
Group Energy Used and Carbon Emissions (Total in Manufacturing Operations) – Calendar Year Reporting
In 2010 CCA Group energy used due to our manufacturing operations was 1,757,454 GJ which was 3% increase over 2009. This was due to the inclusion of the Bluetongue Brewery figures in 2010 (for the first time).
However on a like-to-like basis the net increase was 1.4%.
In 2010 CCA Group activities in its manufacturing operations produced an estimated total of 221,352 tonnes of CO2-e (Scope 1 and 2), representing an increase of 8.7% on 2009. This was due mainly to the increase in Indonesian operations, which contributed around 80% of the net increase.
Australian beverage operations actually showed a 3.6% decrease over the same period.
(For all other businesses, see Energy and Climate Graph)
National Greenhouse Energy reporting Scheme (NGERS) Australia – Financial Year Reporting 2010/11
CCA Australia had a combined Scope 1 and Scope 2 emissions of more than 50,000 tonnes of carbon, the corporation threshold for 2010/11 reporting, mandating its requirement to report energy use and carbon emissions under the NGERS scheme.
The scope for NGERS reporting for CCA Australia is all emissions from facilities over which we have operational control – from manufacturing and warehousing facilities, to office workplaces and small storage facilities. Fleet energy use is also reported.
Overall CCA's Scope 1 emissions decreased 3.5% (1895 tonnes CO2-e) in FY 2010/11 when compared with FY2009/10. This reduction was driven primarily by SPC Ardmona’s Scope 1 emissions decrease of 20.7% (or 5,396 tonnes CO2-e), offset by a change in ethanol treatment classification across all entities.
CCA’s Scope 2 emissions decreased by 6.2% (8,166 tonnes CO2-e) in FT 2010/11 when compared to FY 2009/10. Again this reduction was driven primarily by shifts in SPC Ardmona manufacturing activity and reductions in electricity use at the SPC Ardmona sites of Shepparton and Mooroopna.
Fleet
We have also measured the CO2-e emissions of the fleet owned by CCA in Australia. The Australian measurement is included in our Australian Scope 1 data for NGER reporting.
In FY 2009/10, the CO2-e emissions for CCA and SPCA-owned fleet was 12,724 tonnes.
In FY 2010/11 the CO2-e emissions for CCA and SPCA owned fleet was 16,036 tonnes. The increase was due to a change in the treatment of ethanol fuel following clarification from the Greenhouse and Energy Data Officer (GEDO).
Carbon tax – July 2012
CCA Australia reports carbon emissions under the National Energy and Greenhouse Reduction Scheme (NGERS) which requires us to measure and disclose GHG emissions.
CCA Australia is a low energy intensive business and does not breach the GHG emissions threshold set by the Federal Government -- CCA’s Australian facilities are all below the 25,000 tonne Scope 1 GHG emission threshold legislated in the NGER Act 2010.
This means no carbon tax will be paid through CCA’s Australian operations.
However input costs for CCA along the supply chain may increase under a carbon tax as suppliers pass on higher costs. CCA intends in turn to pass on any costs associated with a carbon tax.
How CCA is Reducing Carbon
Less PET Resin in Beverage Bottles Produced by Blow-fill
The single largest capital investment in infrastructure CCA has made in a decade has resulted in the single most significant reduction in carbon in our manufacturing facilities – the $450 million bottle self-manufacture, or “blow-fill” technology installed in facilities across the CCA Group – Australia, New Zealand, Indonesia and Papua New Guinea.
The technology has enabled CCA to redesign plastic bottles using less PET resin, and this, combined with no longer having to transport bottles from suppliers, has resulted in lowering the carbon footprint of every 600ml PET plastic beverage bottle made by 22% (source: Martina Birk – MSc Thesis “Case study – Coca-Cola Amatil, Australia: Comparison of carbon footprint converter model v blow-fill technology for PET bottles” August 2011).
This is equivalent to 1700 cars being removed from the roads every year.
Across the Group, CCA estimates that more than 9000 tonnes of PET resin will be saved per year when all production lines have installed blow-fill technology by 2015.
Workplace Practices
CCA Australia is identifying ways to reduce energy in our facilities and offices:
- Eliminating compressed air leaks, steam leaks and air knives
- Installing pipe insulation
- Reducing air pressure
- Upgrading lighting
- Maintaining heating, ventilation and air conditioning
- Condensate return
- Training employees
- Controls on programming and production line energy metering
Coca-Cola Place – CCA’s Head Office
Relocation of CCA’s Australian Head Office from Macquarie Street Circular Quay in Sydney to a new 6 Star Green and 5 Star NABERS rated building in North Sydney. (Green Star, an initiative of the Green Building Council, is a comprehensive national voluntary environmental rating system that evaluates the environmental design and construction of buildings.)
The design features include:
- The latest in efficient lighting and HVAC with sensor controlled illumination
- Extensive natural light in the building
- A tri-generation power supply and grey water recycling
- Multiple bicycle racks
CCA obtained a 5-Green Star rating by the Green Building Council of Australia for the sustainable fit-out of the offices in Coca-Cola Place.
SPC Ardmona – Shepparton
Fruit and juice processing requires a considerable amount of heat and water consumption to affect its transition from raw ingredients to final saleable product. Within the juice plant processing of the fruit uses steam for heating and sterilizing the product mash. Along with the processing itself a substantial CIP (or Clean In Place) regime is used to ensure the cleanliness and sanitized condition of the equipment between batches. It has been possible through use of heat exchangers, water and steam condensate recovery systems to better utilize a lot of this previously wasted energy.
One energy project at SPC Ardmona’s Shepparton site in 2010 – 11 utilizing steam condensate recovery has eliminated the loss of 102 Megalitres (ML) of water, 19000 Gigajoules (GJ) of energy and 975 tonnes of CO2 emissions per annum.
In 2011 SPC Ardmona participated in a Carbon Lifecycle Analysis by Sustainability Victoria and the Australian Industry Group targeting Australian brands manufactured in Victoria.