cadbury-schweppes environment report -...

Environment Report

Contents

1 Introduction by Group Chief Executive2 Cadbury Schweppes plc Environmental Policy3 Our business4 Reporting on our environmental performance5 Key environmental aspects6 How we manage the environment

10 Communication & Training12 Water Integrity14 Water Consumption16 Wastewater18 Energy Use20 Emissions to air22 Solid Waste24 Packaging & Material Conservation28 Supply Chain Management30 Supporting the environment we live in32 Future developments

Introduction by Group Chief Executive

As we look forward to a new millennium, the environmentcontinues to occupy a key position on our business agenda.

In September 1993, the Board ofCadbury Schweppes plc adopted itsCorporate Environmental Policy whichcontains eight key commitments. Thatpolicy has been reviewed and reaffirmedon a regular basis.

The eight commitments, together with aGroup-wide Environmental ManagementProgramme, enable us to translate policyinto operational actions. Performanceagainst these commitments is closelymonitored by the Board.

Our programme is not just about actingin a responsible manner, complying withlegislation or meeting public expectationsof a global food and drinks company.Increasingly, sound environmentalperformance is found to contribute tobetter business results, and thereby our governing objective of increasingshareholder value.

We have made progress and we shallcontinue to measure and build on this. I hope you will read with interest theexamples contained in this Report.

John M SunderlandGroup Chief Executive

Winter 1998/99

Cadbury Schweppes plc Environment Report 1

2

The Cadbury Schweppes plc Environmental Policy isexpressed in eight key commitments that set the standardsand practices which our businesses around the worldemploy in addressing environmental concerns.

1 Conduct our business in compliancewith applicable environmental lawsand regulations. Even where we arein full compliance, our objective willremain the control and reduction of the environmental impact of ouroperations reflecting industry bestpractice.

2 Implement programmes and reviewsto evaluate our operations and checkcompliance against this policy.Management are required to haveprogrammes in place to determineappropriate local targets anddemonstrate continually improvingperformance.

3 Adopt programmes to ensureefficient use of energy, raw materialsand natural resources across allsegments of our business and tominimise the quantity of waste andpollutants associated with our activities.

4 Work with relevant organisations,government bodies and publicgroups to promote efficiency in solidwaste management through recycling,reuse and energy recovery of material.

5 Provide employees with a healthyand safe environment together witheffective information and training toencourage the individual’s contributiontowards environmental responsibility.

6 Promote consideration ofenvironmental concerns throughoutthe supply chain and with ourbusiness partners. In addition, we promote awareness of ourenvironmental policies more generally.

7 Assign management responsibility for the environment throughout thebusiness and maintain the organisationand operational procedures to ensure successful implementation of these policies.

8 Review and update our EnvironmentalPolicy on a regular basis.

Cadbury Schweppes plc Environmental Policy


South Africa

Swaziland

ZambiaZimbabwe

Kenya

India

MalaysiaSingapore

Indonesia

New Zealand

Namibia

Argentina

Mexico

Canada

USA

Nigeria

Egypt

Ghana

SpainPortugal

France Belgium

Poland

Russia

PakistanLebanon

China

Australia

Republicof Ireland

UK

Our business

Cadbury Schweppes is a major global company inbeverages and confectionery which manufactures, marketsand distributes its branded products in over 200 countries.In 1997 sales were £4.2 billion.

Cadbury Schweppes was formed in1969 through the merger of Cadburyand Schweppes, since when there hasbeen a continuous programme ofexpansion world-wide. Today we employ41,000 people. The Cadbury brand is thelargest confectionery brand in the world,while Schweppes is one of the mostfamous soft drinks brands.

The organisational structure reflects thetwo areas of business focus, Beveragesand Confectionery. These two businessstreams are managed around the world in divisions covering the UK, ContinentalEurope and Ireland, the Americas,Australasia, Pacific Rim, Southern Africa,Central Africa, India, Pakistan and the Middle East.

Symbols show the 32 countries where we have 94 wholly owned or partly owned factories

GermanyHolland

4

Reporting on our environmental performance

Most of the data relates to manufacturingperformance, and is drawn from the 94factories which we own completely orpartly. The map shows the 32 countries in which these factories are located. At these sites we are directly able toinfluence environmental performance and policy.

In many countries, our soft drinkproducts are produced under licenseagreements. Periodic reviews and auditsare performed at bottling locations toensure that Cadbury Schweppes’standards are being adhered to.

In this report we demonstrate ourperformance using both absolute figuresand figures per unit of production.

This report demonstrates through environmentalperformance data and case studies from the Beverage and Confectionery businesses how we are implementing our Group Environmental Policy.

COMMITMENT

‘Our objective will be to control and reduce the environmental impact of our operations reflecting industry best practice...’


Key environmental aspects

Environmental Aspects Environmental Impacts

Group Environmental Management Reduction of environmental impacts and opportunity for better environmental performance

Communication & Training Good environmental understanding at all levels and co-ordination of activities thus minimising the risk of potential environmental harm

Water Integrity Protection of one of our primary raw materials

Water Consumption Depletion of natural resources

Wastewater Potential threat of pollution to water courses and damage to aquatic ecosystems

Energy Use Contribution to global warming through greenhousegases and depletion of natural resources

Emissions to air Contribution to atmospheric pollution and global warming

Solid Waste Occupation of landfill space; air emissions fromincineration and landfill gas; potential contaminationof land, groundwater and surface water

Packaging & Material Conservation Use of materials, waste, resource conservation and disposal to landfill

Refrigerants Depletion of ozone layer by CFC’s, HCFC’s and other ODS’s (Ozone Depleting Substances)

6

How we manage the environment

These commitments, listed on page 2,together with a Group-wide environmentalmanagement programme, enable thecompany to translate the Policy intoactions. Our approach is to integrateenvironmental responsibilities andprocedures into the everyday life of thebusiness, reflecting our belief that goodenvironmental performance is anessential contributor to our businessobjective of Managing for Value.

The translation of policy into actiondepends on clear accountability forenvironmental performance at each level. At company and site level,operational line management isresponsible for ensuring that theprocesses and performance measuresare in place to implement the Policy.Performance is closely monitored by the Environmental Steering Committee,which reports to the Main Board. The Board is responsible overall forenvironmental performance.

Structure and responsibilities

In 1993 the Cadbury Schweppes Board adopted the Group Environmental Policy. It contains eight key commitments that set the standards and practices which our businessesaround the world employ in addressing environmental concerns.

COMMITMENT

‘Assign management responsibility for the environment throughout thebusiness and maintain the organisation and operational procedures to ensuresuccessful implementation of these policies...’


Environmental Accountability

Main BoardResponsible forenvironmental performance.

Steering CommitteeResponsible for reviewing the

environmental management system, key issues and the currency of the Policy,

recommending any changes in Policy to the Board and maintaining the Cadbury Schweppes Guide to

Environmental Management (GEM).

Business StreamResponsible for coordinating the environmental

management programme and providing support where required to Business Units. Annual reporting

of Stream environmental performance.

Operating CompanyResponsible for setting out the detail, sequence and timing of

business unit implementation of the Policy commitments, reviewing progress against objectives annually.

Operational Line ManagementDesignated person(s) with responsibility for ensuring compliance with the Policy are required to have programmes in place to determine appropriate local targets and demonstrate continually improving performance which is reported annually.

Cadbury Schweppes Main Board

Environmental Steering Committee

Operating Company

At each site

ISO 14001 CERTIFICATION, ASPERS, PENNSYLVANIA, USA

Factory environmental management teamsin Mott's North America are committed toobtaining certification to the ISO 14001environmental management systemsstandard. Amongst the benefits Mott’ssees in obtaining certification are costsavings from reduced raw material andenergy consumption, reduced wastegeneration through improved processmanagement and enhanced riskmanagement. Mott’s at Aspers havereceived their ISO 14001 certification.

Confectionery & BeverageBusiness Streams

8

Improving our performance

Each site carries out an assessment of itsenvironmental performance, from whichan improvement programme is developed,including a series of specific objectivesand targets. The site management providesthe Environmental Steering Committeewith annual performance reports on theimplementation of the programme,including comprehensive data on allperformance indicators. Gatheringreliable data from our many sites aroundthe world and ensuring that sites reportin a consistent form has proved asignificant challenge. However, webelieve that data reliability has significantlyimproved, and provides an accuratereflection of actual performance.

The Cadbury Schweppes Guide toEnvironmental Management (GEM)provides a reference of best practicetools and technical guidelines which help manage operational performancethroughout the Group.

Procedures and Operational Control

Operating companies are required toconduct comprehensive, periodic auditsto ensure they comply with the GroupPolicy and commitments. Specialistinternal support is provided through theenvironmental department, and technicalstaff are also trained to carry out auditsthemselves. Audits are conducted usingCadbury Schweppes best practiceswhich reflect the EMAS and ISO 14001standards.

External Certification

While implementation of the environmentalmanagement system elements containedin the Group Policy remains our principalgoal, sites are encouraged to apply forexternal certification to environmentalmanagement system standards such as ISO 14001 or the European Union’sEMAS standard. So far one site hasreceived EMAS accreditation and onesite ISO 14001.

Investment

Over the last six years CadburySchweppes have spent on average £7m per year on environmental projectsand improvements. In addition, there has been a similar expenditure onenvironmentally related operating and maintenance costs.

COMMITMENT

‘Management are required to have programmes in place to determine appropriatelocal targets and demonstrate continually improving performance…’

How we manage the environment


Reduction in ingredients lost in processing

Reduction in effluent plant sludge per tonne of production

Reduction of effluent loading

Reduction in heavy fuel oil usage per tonne of product

Reduction in electricity usage per tonne of product

Reduction in process water usage per tonne of product

0 20 40 60 80 100

55%

43%

81%

17%

15%

11%

Environmental benefits brought about by Rathmore’s Environmental ManagementSystem over five years

Using the Group Environmental Policycommitments as their reference, ourCadbury Ireland Rathmore plant hasintroduced an Environmental ManagementSystem (EMS) which integrates into theirexisting quality management system. Thisintegration has been vital in achievingimproved environmental performance,better site management and moreaccurate anticipation of potential problems.

ENVIRONMENTAL MANAGEMENT, RATHMORE, THE REPUBLIC OF IRELAND

80%

20%

1991 1995 1999 2003

Verifying EMS and improvements

Verify compliance

Identify issues, aspects and impacts

Environmental reporting ExternalInternal

Focus on implementationFocus on identification and quantification

80% of sites set formal environmental objectives

Setting environmental objectives Evolution of on-site auditing and reporting

10

Communication & Training

COMMITMENT

‘Provide employees with… information and training to encourage theindividual’s contribution towards environmental responsibility…’

We have developed a global training programme for factorymanagement to ensure that all those with environmentalresponsibilities have a clear understanding of environmentalissues and best practices.

HANDS-ON ENVIRONMENTAL TRAINING

In addition to corporate level training programmes, environmentalmanagement training is being cascaded down the organisation.Factory workers on production lines are receiving hands-oninstruction in key areas including hazardous materialsmanagement and spill clean up.

CORPORATE ENVIRONMENTALTRAINING

Managers from 29 of 32 countries wherewe have wholly owned or partly ownedfactories have attended the corporateenvironmental training course.


Our environmental training programmestake place around the world; managersat over 90% of our sites have receivedenvironmental training from the corporateenvironmental department. Topicscovered include general environmentalawareness, the application of thecompany’s environmental policies, waste management, emissions, resource conservation and safety and emergency preparedness.

However, in the long term, continuousimprovement in environmental performancewill be possible only if all employees areaware of the issues and take environmentalconsiderations into account in their dayto day actions and decisions.

In 1998 all 41,000 employees received a booklet in their own languagediscussing the environmental issuespertinent to the company.

Feedback from this work has beenencouraging and has been backed upsubsequently by an Environmental Policyposter campaign to reinforce our beliefthat all staff have an environmental role.

In addition to formal training programmes,individual facilities also run site-specificcourses to address local issues. Severalhundred staff at Cadbury Ltd in the UKhave attended formal environmentaltraining courses including auditing, riskcontrol, waste handling, etc. Karachi,Pakistan, started an environmentalawareness programme through regulardiscussion groups. Jurong, Singapore,include environmental awareness in their employee induction programme. At Malanpur, India employees are giveninstructional visits around their factorywastewater treatment plant to help themunderstand effluent issues.

COMMUNICATINGENVIRONMENTAL ISSUES

To reinforce our formal environmentaltraining sessions the company hasproduced an environmental brochure in 10 languages. This brochure has been issued to all 41,000 employees and discusses the environmental issuesrelevant to the company and employees ina straightforward and informative manner.

Policy posters, also in 10 languages, have been been distributed for display in all our factories and offices.

Corporate Environmental Training Courses

29

3Countriesto complete

Countries that have attended

Environmental Policy posters

Environmental brochures

12

Water Integrity

We use water drawn from rivers, lakes, springs andunderground sources in our manufacturing facilities aroundthe world. We are committed to help protect the integrity ofwater supplies wherever we operate.

Water is a precious resource to us all.Water constitutes a vital part of ourproduction process and products. Weregularly test and monitor the waterquality of our facilities and wherenecessary install additional watertreatment plant.

Where we have underground watersupplies we must also keep soil andgroundwater in and around our sitesclean and free of chemicals or substanceswhich could percolate down and affectthe water supply. We take a wide rangeof measures to minimise the potential forgroundwater contamination:

• exercise a Duty of Care programmefor all our facilities, which includesbest practice in water supply andgroundwater protection

• regularly monitor the quality of ourproduct water

• replace underground storage tankscontaining potentially hazardousmaterials, such as fuel oil, with above ground tanks

• install purpose built hazardousmaterials storage facilities, and secondary containment aroundindividual tanks

• train staff in spill prevention and clean-up techniques.

TESTING RIVER WATER QUALITY,NEAR WILLIAMSON, N.Y. USA

COMMITMENT

‘Adopt programmes to ensure efficient use of… natural resources across allsegments of our business…’


LANDFILL RESTORATION,NAUGATUCK, CONNECTICUT, USA

Cadbury Schweppes participated withother companies, local communities andgovernment agencies in the successfulrestoration of the Laurel Park Landfill atNaugatuck, Connecticut, USA. To protectregional groundwater quality, the landfill

was encapsulated by a watertightliner to prevent rainfall fromgetting in, and polluted waters

from leaking out.The restoration work wascompleted within budget and a year ahead of schedule.

Cadbury Stani have constructed apurpose built materials store for items that could potentially impact on theenvironment. All our factories around theworld have or are upgrading theirhazardous materials storage facilities(Hazmat Stores).

MATERIALS STORAGE, BUENOS AIRES, ARGENTINA

14

Reducing water consumption

Water is the main ingredient of ourbeverage products, and consumption is therefore directly related to productionvolumes. However, in both our Confectioneryand Beverage businesses we also uselarge volumes of water during theproduction process, for cooling, heatingand to wash and rinse equipment andsurfaces. The production of safe foodand drink demands the higheststandards of hygiene, and water plays an important role in this.

As a major user of water, we continuallyseek opportunities for reducing ourconsumption.

Water Consumption

Water is a precious resource and supplies are increasinglycoming under pressure from over-consumption, and alsofrom industrial and agricultural pollution. Our business is dependent on the reliability and quality of water, and we therefore have a direct interest in conserving waterresources and protecting water quality.

COMMITMENT

‘Adopt programmes to ensure efficient use of… natural resources across all segments of our business…’

The increasing difficulty in obtaining thelarge amounts of pure water needed byour Dunedin plant, suggested a rethink

of how water was used. Several waterrecovery projects have been

introduced reducingconsumption by 27%.

These include newchilled water systems

for cooling, whileopportunities toavoid and reducewater use havebeen activelyfollowed.

REDUCTION INITIATIVES,DUNEDIN, NEW ZEALAND


In Portugal, our Venda plant has optimisedits bottle washer performance and installedback-wash water reuse systems, whichhave allowed the factory to reduce waterconsumption by 57%.

1995 199719960

4

8

12

16

20

5.0

5.2

5.4

5.6

5.8

6.0

1995 1997199618.9

5.6

7

18.8

5.7

3

5.5

9

18.9

Group water consumption

Total water consumed in million m3 m3 of water consumed per tonne of product

Plant Volume Volume Cost saving Measures taken1995 (m3) 1997 (m3) (sterling)

Villeneuve D’Ascq 53,714 36,600 55,956 Water minimisation programme

Carcagente 326,139 178,630 79,192 Defrost water recycling system

Trebor Jakarta 93,505 73,843 37,686 Water recirculation system

St Catharines 504,663 228,422 47,873 Cooling tower water recycling

Dunedin 528,840 387,460 46,810 Chilled water recirculation system

Venda 112,798 48,850 57,188 Back-wash reuse

Some best performance examples of water conservation

We monitor the water consumption at our factories both for total volume and by how much water is used tomanufacture one tonne of product.

WATER REUSE SYSTEMS, VENDA, PORTUGAL

16

Wastewater

To maintain the highest levels of quality and purity, themanufacture of food and beverage products requires thefrequent washing and sanitising of our process tanks,equipment and production areas. We seek to reduce thevolume of wastewater we generate by improved efficiencyas well as water recycling.

ZERO EFFLUENT FACTORY,HAMILTON, CANADA

Our Trebor Allan plant in Hamilton, Canadahas been investigating the concept of aZero Effluent factory, where all processwater emissions are eliminated throughthe use of improved cleaning and coolingtechniques. Reusable and non-reusablewater is separated, with the usable watergoing into making liquid sugar and theremainder used as cattle feed. Thetechniques developed at Hamilton not onlyreduce wastewater emissions but help tominimise the factory's demand on watersupplies.

COMMITMENT

‘Minimise the quantity of waste and pollutants associated with our activities…’


1995 199719960

4

8

12

16

20

0

1

2

3

4

5

1995 19971996

11.3

3.4

11.0

3.5

3.3

11.7

Group wastewater discharge

Total wastewater discharge in million m3

m3 of wastewater discharged per tonne of product

Cadbury Aguas Minerales SA recently completed the installationof a new wastewater system at Tecate, Mexico. The system uses a sequencing batch reactor (SBR) to treat effluent from thefactory. The vertically structured SBR process eliminates the needfor separate aeration, clarification and sludge tanks. This systemuses less space and is completely automated.

WASTEWATER SYSTEM, TECATE, MEXICO

Wastewater quality

The wastewater we generate during the production process contains materialssuch as sugar, flavourings, acids, cleaningfluids, soaps and fats. Wastewaterdischarges from our factories are usuallysent to the local municipal wastewatertreatment plant, with some on-site pre-treatment such as pH neutralisation.In other cases wastewaters are fullytreated on-site before being released to rivers or lakes.

We continue an active programme tominimise our wastewaters and wherenecessary install and operate the mostappropriate modern effluent treatmentplant.

18

Energy Use

Energy use is a key global issue because it leads to thedepletion of non-renewable resources. We track our energyconsumption, monitoring it against production volumes tomeasure energy efficiency.

COMMITMENT

‘Adopt programmes to ensure efficient use of energy……minimise the quantity of waste and pollutants associated with our activities…’

The Schweppes Cottee’s Liverpool factorynear Sydney, Australia, took part in theCleaner Production Demonstration Projectsponsored by the Federal GovernmentAgency, Environment Australia. Severalwater and energy management projectswere undertaken including one to minimisethe emission of excess steam producedby a portion of the plant. To control thiswaste of energy the efficiency of the heaterwas improved by replacing temperaturecontrols, reducing leaks, replacing steamtraps and improving thermal insulation.Improvements are continuing.

REDUCING ENERGY CONSUMPTION, SYDNEY, AUSTRALIA


1995 199719960

500

1000

1500

2000

2500

0

500

1000

1500

2000

2500

1995 19971996

2,3

78

2,2

76

2,4

55

713

689

730

Group energy used

Group energy use in GW h kW h of energy used per tonne of product

Our main energy requirements are for operating production machinery,refrigeration, heating and lighting. Energy requirements are strongly related to the types of productmanufactured, and also to the volume of production; lower levels of productioncan lead to a loss of efficiency.

We are adopting a wide variety ofmeasures across the Group to increaseenergy efficiency and improve energymanagement.

We are installing some computerisedenergy management systems to improveenergy efficiency of buildings andmachinery, using boiler economisers to recover heat from boiler combustiongases where practical, and selecting new energy efficient equipment for bothenvironmental and economic reasons.

We encourage sites to set energyreduction targets and have started tobenchmark site energy consumption pertonne of product manufactured, allowingcomparable factories to share bestpractices and find solutions.

We are managing energy efficiencyacross our businesses, but note thatnormalised energy use has risen slightlysince 1995. We have identified variousreasons for this increase including a moreextensive and detailed submission ofenergy data, changes in product mix and an increase of on-site manufactureof PET plastic bottles which werepreviously sourced externally.

Total group fuel use 1995

Heavy Oil

Natural Gas

Light Oil

Coal

56%

21%18%

5%

58%

10%15%

17%Heavy Oil

Natural Gas

Light Oil

Coal

Total group fuel use 1997

The construction in 1997 of a newButterkist popcorn manufacturing facilitypresented us with an opportunity to investin state of the art energy saving buildingand production techniques. The buildinghas hygienic panels with a very high levelof thermal and sound insulation and nowindows.

POPCORN PLANT ENERGYCONSERVATION, PONTEFRACT, UK

20

Emissions to air

Most of our plants have boilers togenerate hot water and steam which isused for cooking, pasteurisation, cleaning,sterilising and heating. Our boilers burndifferent types of fuel, mainly natural gasand oil, releasing air-borne emissions.Cleaner burning natural gas now makesup 58% of the fuel we consume at ourfactories.

Refrigerants are used for cooling duringprocessing and product storage topreserve product quality. Refrigerationalso plays an important role in parts

Our main impact on air quality comes from flue gases fromour boilers, refrigerant gases, dusts, odours and exhaustfumes from our transport vehicles.

AIR CONDITIONING SYSTEM FORTHE NEW DR PEPPER/SEVEN UPHEADQUARTERS, PLANO,TEXAS, USA

The non-ozone depleting refrigerant R-134awas chosen for the air conditioning systemin the Dr Pepper/Seven Up office in Plano,Texas. Several suppliers and differentrefrigerants were evaluated. R-134a waschosen for its ASHRAE Safety Rating of‘A1’, indicating no flammability, low toxicityand zero ozone depletion potential.

of the world where high climatictemperatures can affect product quality.The release into the atmosphere of CFCand HCFC refrigerant gases contribute to ozone depletion.

We are seeking to reduce our impact on air quality by a number of routes.These include:• monitoring the quantity of pollutants

we emit

• replacing old boiler equipment withenergy efficient low emission boilers

• measuring refrigerant usage

• increasing the use of low or non-ozonedepleting refrigerants

• converting over to cleaner burning fuels

• installing equipment to filter out the level of pollutants discharged.

COMMITMENT

‘…minimise the quantity of waste and pollutants associated with our activities...’


1995 199719960

80

160

240

320

400

1995 199719960

80

160

240

320

400

372

112

356 376

108

112

Emissions from chimney stacks areperiodically sampled and analysed.

on-site emissions to air in thousand tonnes of CO2

on-site Kg of CO2 emissions to air per tonne of product

CO2 and other gases produced aredirectly related to the quantity andcombustion efficiency of the fuel consumed.

We calculate the emissions of CO2and other combustion gases from the type and quantity of fuel used.

1,640

267256

NH3CFC

HFC

HCFC

55

Gas analyser as used by Cadbury Egypt.

Number of refrigerant compressors in usefor main process functionsTotal 2,218 compressors

Group CO2 emissions to air

CADBURY EGYPT, 10TH OF RAMADAN CITY, EGYPT

22

Our sites have waste reductionprogrammes in place which generallyinvolve the separation of wastes bycategory: food waste, industrial/generalwaste and packaging waste. Sitesmeasure their waste streams and manyhave initiated programmes to reduce theamount generated at source and sent tolandfill. Through better monitoring andmeasuring of waste we have managedto gain a better understanding of ourenvironmental impact, in particular onlandfill occupation and resource depletion.Through a number of initiatives we havebeen able to reduce the amount ofwaste sent to landfill and increase thepossibilities for recycling, re-use andenergy recovery of our waste materials.

Solid Waste

Waste minimisation is an important component of improvingmanufacturing efficiency, reducing consumption of rawmaterials and occupation of landfills. Waste avoidancetherefore leads to both business and environmental benefits.Wastes are generated during the manufacturing processand from the final disposal of packaging after consumer use of our products.

Food Waste

Organic materials such as cocoa shell,orange, lemon, apple and other fruitwaste pulps, form the most significantpart of our solid wastes. In most casesthis waste is still valuable after processingand can have a second life as animalfeed or fertiliser.

Industrial and General Waste

We generate a wide range of wasteitems which, if separated, can be re-usedor recycled. Typically, products such aspallets, crates, paper and metals arecollected separately at each site.Maximising opportunities to reusesecondary packaging materials for inter-company transfers and buying materialsin bulk are helping us to reduce thequantity of waste we generate.

Some industrial processes require theuse of materials that after use maybecome classified as hazardous waste.Solvents used in printing and cleaningmachinery, inks, special cleaners andash may fall into this category. Thesewastes are disposed of using licensedcontractors.

We are becoming much better at measuringand classifying the tonnage of waste andrecycled materials. The waste tonnagetotal excludes a 33,000 tonnes, one off,clearance of waste water sludge in theUSA during 1997.

Our overall tonnage of solid waste sent tolandfill has decreased because of diversion.Diversion includes reduction, reuse,recycling and incineration. During 1997,92% of solid wastes from the beveragebusinesses and 57% from the confectionerybusinesses were diverted from landfill.

COMMITMENT

‘…promote efficiency in solid waste management through recycling, reuse and energy recovery of material...’


Typical factory inputs and outputs

204,9

94

182,6

11

206,7

49

1995 199719960

50,000

100,000

150,000

200,000

250,000

Group Solid Waste

Fruit pulp and sludge generated in thewastewater treatment process used at theMott’s apple processing facilities are anexcellent source of fertiliser for local farms.Corn, hay and alfalfa require between 100and 150 pounds of nitrogen per acre togrow effectively. Mott’s North Americatests the nitrogen content of its fruitprocessing waste sludge and has beensupplying measured amounts to localfarms. Land application of fruit sludge is a good example of a waste material beingrecycled for a beneficial use.

SOIL CONDITIONER, NORTH AMERICA

Total solid waste in tonnes

Inputs Process Outputs

cocoa beans, milk, sugars, Wrapped chocolate products:

nuts & raisins, packaging, • by-product: cocoa shell treated as

soil conditioner

water, energy • effluents and air emissions

• solid waste to landfill

• packaging for recycling

sugar, glucose, starch, Sugar confectionery:

gelatine, flavours, gums, • by-product: liquid wastes for animal feed

packaging, water, energy • effluents and air emissions



sugar, water, food acids, Soft drinks in bottles & cans:

flavourings, bottles, cans, • effluents and air emissions

labels, shrink film, energy • solid waste to landfill


oranges, lemons, apples Fruit juices & fruit concentrates:

cranberries, sugar, packaging, • by-product: fruit pulps and sludges used

water, energy as soil conditioner

• effluents and air emissions



46

56

0

20

40

60

80

100

19971996

Solid waste sent to landfill Waste diverted from landfill

In thousands of tonnes

78% waste diverted in 1997

78%

22%

24

Food packaging must meet thenecessary regulatory, safety, hygiene,consumer acceptance and economiccriteria. It must be designed to identify,protect and deliver goods efficiently tothe consumer, and contribute to efficienttransport utilisation. Packaging performsa vital function in preserving andprotecting food products. It reduces thepotential for product waste as a result ofbreakage or spoilage.

We balance the need to reduceenvironmental impacts arising from thedisposal of packaging waste with theamount of packaging required tomaintain product integrity and function.We seek opportunities to reduce theenvironmental impact of our packagingwithout affecting product safety or theconsumer’s appreciation of the product.

We draw on our long experience ofusing packaging in the food industry and by referring to our own InternationalPackaging Specifications andgovernmental and industry advice. A typical code of practice is the‘Responsible Packaging Code’, for

Packaging andMaterial Conservation

Cadbury Schweppes products use many different kinds ofpackaging. These typically include all the well known containers for beverages such as glass, PET plastic and cans in a wide range of sizes, and for confectionery products chocolate bar wrappers,boxes of chocolates and bags of sweets.

optimising packaging and minimisingwaste. This is available from the UKIndustry Council for Packaging and theEnvironment (INCPEN) and endorsed bythe Institute of Packaging.

Some sources of packaging waste includelosses during production and distribution.These are carefully managed and whereappropriate recycled back into reusesystems.

Reducing packaging

At Cadbury Schweppes we haveconsiderable experience in the light-weighting of consumer packaging. Light-weighting involves reducing theamount of packaging material used, while retaining the required structuralproperties of the package. The weightsof soft drink cans, PET plastic and glassbottles have all been significantly reducedover the past decades by the use ofbetter designs, technology and materials.

COMMITMENT


Another example of packaging weightreduction is the introduction of flowwraps and other lightweight wraps for awide range of confectionery products.However in some markets where flowwrap has replaced the familiar traditionalmetal foil and paper banding forchocolate bars, it has not met withconsumer acceptance for some productsused as gift items. We also takeopportunities where appropriate to usemultipacks and lightweight secondarydisplay packs and cartons. We haveused stretch wrap to replace full depthcardboard cartons and reduced thenumber of separation layer sheets used on pallets.


1989 199319920

12

24

36

48

60

1996 1998

54 53 52.548

47

PET Plastic Bottle Lightweighting 13% reduction in bottle weight

1989 199119900

0.007

0.014

0.021

0.028

0.035

0.0

3048

0.0

315

0.0

2997

19961993

0.0

2896

0.0

2794

19981997

0.0

2769

0.0

2743

Aluminum can thickness for 340ml Mott’s can

Can gauge thickness in cm2.0 litre PET plastic bottle weight in grammes

REDUCING PACKAGING IN THE BEVERAGE STREAM

The reduction in the weight of packaging is only one approach to materialconservation. Returnable bottles are another way, although when examining the environmental benefits of this route, it is vital to consider the environmentalimpact of the transportation of emptybottles and the water, materials andenergy used in bottle washing.Nevertheless in some of our markets, such as Spain, the reuse of consumerbottles is well established. Other initiativesto reduce material consumption includethe recycling of waste plastic within theproduction process by factories inAustralia & France. Other factories haveundertaken formal waste and packagingaudits and a number of factories such asVenda in Portugal and Bad Neuenahr inGermany use caustic settling tanks torecover and reuse caustic soda from bottle washers.

DRINKING CHOCOLATECONTAINER LIGHTWEIGHTING,CADBURY FRANCE, BLOIS, FRANCE

26

Packaging and other waste recycling

Many countries have recycling infrastructuresto collect consumer waste. Severalcountries have introduced legislation todrive down packaging waste and encouragerecycling and reuse rather than packaginggoing to landfills. Packaging is about 6%of landfill waste in the UK.

Most of the materials we use arecompatible with recycling systems.Beverage containers, which tend to beglass, aluminium, steel or PET plastic areeasier for consumers to collect and

separate for recycling than confectionerywrappers. Within our factory productionunits we separate packaging and otherdifferent waste materials for recycling.We are members of several industry-funded organisations including BIEC inAustralia, Eco-Emballages in France,Ecoembes in Spain, DSD in Germany,Fost Plus in Belgium and Valpak in theUK. These organisations have beenestablished in various countries toreduce the amount of packaging beinglandfilled and to promote recycling andother forms of recovery.

Litter

A perennial problem we face is howpeople dispose of our productpackaging. Litter is a complex issuereflecting how different people andcultures throughout the world appreciateand treat their environment. There is nosingle approach to solving this problem,but we are working with a number oforganisations in several countries to helpthem find appropriate local solutions.

Packaging andMaterial Conservation

Cadbury France have reduced the weightof the Super Poulain 400g DrinkingChocolate packaging by 27%. In 1997, 79tonnes of material was saved. This has alsoallowed the number of boxes per pallet tobe increased by 9% and brings anassociated improvement in transportationefficiency.

Drinking Chocolate containerCadbury France.

COMMITMENT



WASTE REDUCTION ACTIVITIES,CADBURY GHANA, ACCRA

Due to Cadbury Ghana’s heavydependence on the manual productionof small batches, waste reduction hasproved to be particularly challenging.By recording wastes at all stages they have been able to identify where wastagereduction measures are most effective.Material losses are now less than 1%. The Ghanaian business is particularlyproud that much of the reduction hascome from careful analysis of the wastestream and from staff suggestions.

Ghanaian manufacturing mass balance

Softmint rolls waiting to be multipacked,are stored in promotional cartons until they are ready to become finished goods.Dip Dab sachets are transported to theChesterfield site in obsolete containersready for packing into Booty Bags alongwith other products. Plastic trays are usedto store Softmints until they are ready tobe packed into bags or rolls.

Recycle

An extensive rationalisation ofcorrugated board specifications hasrecently been implemented to employthe use of recycled test liners,replacing virgin kraft liner. Paper-making technology has advanced at such a rate that test liner strengthand quality is comparable with kraft,with moisture uptake being theonly major difference. Thischange has also providedTrebor Bassett with a costbenefit of approximately £50k across all sites.

THE 3 R’S AT TREBOR BASSETT

The guiding principles for developingenvironmentally acceptable packaging canbe expressed by the 3 R’s: Reduce, Reuse,Recycle. Trebor Bassett endeavours tomeet these objectives in various ways.

Reduce

It is possible to avoid the financial andenvironmental implications of wastedisposal at the end of the packaging chainby minimising the amount of packagingmaterial used to pack a product – withoutcompromising quality. Trebor Bassettconstantly review their packaging materialsand promote the lightweighting of films,paper and board specifications wherepossible, to reduce packaging wastewhich ends up in landfill sites. Superfluouspackaging, such as tape used on crashlock based boxes, may be removed fromexisting packs.

Reuse

Trebor Bassett take all opportunities toreuse containers, both corrugated andcarton board, for internal distributionpurposes. Work-in-progress, such as

Raw Materials(milk, cocoa powder, malt,

glucose, sugar, oil, fat)

Manufacturing(mixing, milling, baking,

cooking, granulating, packing)

Transportation and Distribution

(finished products)

Consumption(finished products)

Waste Management(solid: metal drums, paper bags,

poly bags, process waste)

Consumable productsfood beveragesconfectionery

Water Effluentscontains mainly a mixture of fermentable ingredients

Air Emission(inc. noise)CO2 from boiler:dust particles from cocoa and milk

Solid Wastejute sackssteel drumspoly bags

Energyelectricitygasolinenatural gas

Water(treated from mains)

Raw Materials(solid and liquid types)

Resource Input EnvironmentalOutput

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Supply Chain Management

Managing the supply chain

Our environmental programme is notonly about improving our ownperformance, but also about theperformance of our suppliers. There aresound business reasons for dealing withsuppliers who are environmentallyresponsible and knowledgeable. Industrywide environmental surveys are showingthat supply chain issues are a growingpriority (as demonstrated in the UK bythe Business in the Environment (BiE)Index of Corporate EnvironmentalEngagement). To protect the reliability ofour supply chain we need to be aware ofsupplier environmental risks, which couldresult in the disruption of our day to dayoperations. Additionally, suppliers whoare environmentally aware are able toadvise Cadbury Schweppes in selectingmaterials that minimise environmentalimpact.

We have initiated a programme tocommunicate our environmentalstandards to our major suppliers and togain an understanding of their ownenvironmental performance. We aredoing this by sending our major suppliers

We have recently developed a system for communicatingthe Cadbury Schweppes Environmental Policy to our keysuppliers to inform them of our standards and to evaluatetheir performance.

a copy of our own Environmental Policy,and asking them to complete a briefenvironmental due diligence assessmentof their environmental policy, organisation,environmental control and legalcompliance. This is not a simple taskdue to the vast number and range ofsuppliers that we deal with worldwide.We have started with our majorsuppliers, and seek to improve ourperformance in this area by extendingthe programme to include moresuppliers throughout our supply chain.

We have developed purchasingguidelines for our businesses that identifyenvironmentally preferred options for awhole range of items from buildingmaterials and machinery, to everydaygoods and services. By raisingenvironmental awareness ofpurchasing issues withinour own businesses weare also helping to raiseoverall environmentalstandards within thesupply chain.

COMMITMENT

‘Promote consideration of environmental concerns throughout the supply chain and with our business partners…’

EVALUATING SUPPLIERENVIRONMENTALPERFORMANCE


In Mexico City, delivery trucks have beenconverted to run on cleaner burningpropane in order to reduce air emissionsfrom our vehicles. Mexico City hassignificant problems with air quality, manycoming from vehicle emissions.

Transport and Distribution

The transportation and distribution offinished products to the customer iscontinually under review to obtain greaterefficiencies, and as a consequencereduce environmental impacts.

The use of regional distribution centresfor confectionery and beverage productshelps optimise loadings and reducesvehicle movements.

Minworth is our largest distribution warehouse in the UK.In 1998, 70,000 journeys were undertaken out of Minworthcovering 9.4 million kilometres and using 3.3 millionlitres of diesel. We are actively seekingto reduce the number and frequency of vehicle journeys that we make bytrying to ensure that every lorry isfully loaded in both directions. We have initiated a programmeof recording vehicle journeys,distances travelled and fuel use.Diesel usage has already beenreduced to 50.22 litres perthousand cases delivered. In future years we are seeking tofurther reduce fuel use and cut thetotal distance travelled while reducingthe number of journeys. The results of our practices at Minworth will be used to establish best practice for all our distribution sites.

JOURNEY REDUCTION, MINWORTH, UK

AIR EMISSION REDUCTION,MEXICO CITY, MEXICO

30

Supporting the environment we live in

Yowie is a moulded chocolate, mythicalanimal available in Australia and NewZealand, which combines an educationprogramme with a new concept inconfectionery. The educational aspects of this project include resource packs onnative ecosystems, available on CD-ROMor down-loadable over the Internet. In recognition of the sensitivity of

educational programmes, this material makes no reference

to any Yowie products.

YOWIE, AUSTRALIA/NEW ZEALAND

Around the globe a number of Cadbury Schweppes businesses supportactivities to promote environmental awareness in the world in which welive. Many of these are local initiatives, looking to find new and imaginativeways of working with partner organisations on community projects.

Activities increasingly involve CadburySchweppes employees and their families,and may be in partnership with localschools or community organisations.Environment projects are an importantpart of the Group’s community involvementprogramme and are an essential part of the way we go about our business.

Schweppes Cottee’s in Australiasponsored an Environment AuditingGuide for schools which educates youngpeople about preserving and protectingthe environment. In Central Africa,Schweppes has been actively involved in recycling bottles, with the moneyraised by collections assisting schoolprojects. Cadbury Nigeria has supportedthe provision of pipe-borne water to itslocal Agidingbi community. In Spain,Schweppes TriNa joined forces with theWorldwide Fund for Nature (W.W.F.) insupport of a 1997 TV campaign drawingattention to environmental problems ofthe oceans and in particular relating tothe protection of whales.

In Mexico, Cadbury Beverages joinedforces with local school children inplanting thousands of trees, shrubs andflowers to improve the local environment.During the devastating floods in Eastern

Europe over the Summer of 1997, CadburyPoland supported its local communitywith donations of blankets, sacks forsand and a water purifier for thechildren’s hospital. At the same time,Cadbury employees helped tobuild dams in their home city of Wroclaw.

COMMITMENT

‘We promote awareness of our environmental policies more generally…’


The company has donated money andequipment to the Children’s GarbageMuseum and Education Center inStratford, Connecticut, USA close to our Trumbull Technical Center. Herechildren learn about waste and recycling in an exciting and informative way.

The Cadbury Schweppes Foundation inthe UK has worked with the environmentalcharity Groundwork on a number of projectsover the last decade. This has includedcontributions towards funding of theBirmingham group and the establishment ofa “green care” programme devoted tosupporting schools and community groupsin different parts of the city. Other supporthas been for the “National Tree Week”campaign and for canal regenerationprojects.

Currently we are supporting Groundworkactivities around the Environmental TaskForces set up under the UK government’sNew Deal, Welfare to Work programme. Invarious parts of the country these provideyoung people with training, experience,qualifications and employment based on a variety of local environmental projectsclose to Cadbury and Trebor Bassett locations.

GROUNDWORK, BIRMINGHAM, UK

TRASHOSAURUS, STRATFORD,CONNECTICUT, USA

32

Future developments

This is the first external environmental report from CadburySchweppes. We hope that it has been informative and hasgiven you an overview of our attitude to the environmentand how we are dealing with our impacts in a positive andsincere manner.

This first report has focused on settingout our policy, our management systemsand on providing performance datarelated to our manufacturing operations.There are several other important issueswe are addressing in the business, onwhich we would propose to report in the future.

We receive a significant number ofenquiries about environmental issues.These range from detailed questionnairesurveys from government and officialorganisations to individual members of

the public, and particularly students withspecific questions. We have noted asignificant increase in these enquiries inthe past two years which perhapsreflects a greater public awareness ofenvironmental issues and how they arebeing managed by industry.

We encourage and would appreciateyour comments and suggestions on this report and any improvements oradditions that you would like to see inthe future.

COMMITMENT

‘Review and update our Environmental Policy on a regular basis…’

Cadbury Schweppes plc Environment Report Winter 1998/99

If you have any comments or questions about the Cadbury Schweppes environmental programmes please contact

The External Affairs DepartmentCadbury Schweppes plc25 Berkeley SquareLondonW1X 6HTEngland

http://www.cadburyschweppes.com

The paper used for this report is Parilux Recycled which is manufactured inFrance. The paper is biodegradable, recyclable and acid and dioxide free. Itconsists of 15% de-inked post-consumer waste, 50% pre-consumer waste and35% totally chlorine free virgin pulp, the fibre for which is taken from sustainableforests. No chlorine is used in the bleaching and de-inking process. The majorityof the waste water produced during the process is returned to source. The inksused are all soya based.

Produced and designed by Dragon

Printed in England by Pillans & Wilson Greenaway, London

cadbury-schweppes environment report -...

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