sustainability report 2014 - cathay pacific catering

Sustainability Report 2014 01


Table of Contents

Our CEO Message

About Cathay Pacific Catering Services (H.K.) Ltd

Our Business Our History Fast Facts & Figures

Vision, Mission & Core Values

Sustainable Development

Steering Committee Reporting Scope Materiality Compass

Organisation & People Development

Lean Management, Training & Programmes

2014 Highlights

Our Catering Business

Caring Catering Supply Chain & Sustainable Sourcing Food Safety & Quality Assurance

Beyond Catering

Certifications & Recognitions Environmental Management, Energy Efficiency & Carbon Reduction Recycling & Waste Management Occupational Health & Safety Employee & Community Engagement Stakeholder Engagement New Green Annex Facility Corporate Governance

Concluding Remarks

9

16

18

8

22

31

13

5

3


2014 was a year of remarkable accomplishments in the triple bottom line of

Cathay Pacific Catering Services (H.K.) Ltd. (CPCS). I am incredibly proud to see the

progress we have made in our business, environment and community performance.

It is gratifying to see how prosperity and sustainability go hand in hand, becoming

an integral part of our operation and culture.

First and foremost, I have to congratulate all 1,600 CPCS colleagues for doing

a great job for breaking the all-time records of daily meals produced and flights

handled, especially against the backdrop of rising minimum wage and labour

shortage. Compared to last year, the total meals prepared in 2014 increased 5.9%;

yet the carbon intensity per meal decreased 1.4% to only 1.41 kg. Compared

to the 2008 baseline year, our carbon emission reduced a total of 25%. Our

investments in system and equipment upgrade, machine automation, Lean

management, organisational and people development indeed paid off significantly.

Special thanks go to every CPCS colleague for their unfailing support and collective

efforts for breaking through the resource constraints, with no compromise on

quality and service excellence.

During the year, the installation of over 5,000 LED lights, upgrade of condensers

and other energy efficiency initiatives harnessed an impressive annualised carbon

saving of 672 tons. The first tailpipe emission free electric vehicle and cleaner ramp

car fleet models were introduced to alleviate air pollution. In 2015, we have major

plans to install 2 heat pumps, replace 5 aged air cool chillers and ramp car fleet

with more efficient models, with an estimate of over 2,000 tons of annualised

carbon saving.

Our CEO Message


With regard to local and responsible sourcing, we support

sustainably produced seafood and enhanced our local

vegetable portfolio, such as spinach and hydroponic salad

greens from local Hong Kong farms. 70-80% vegetables

were sourced across the border from the Mainland

China. Increasingly, we will source for Rain Forest Alliance

certified produce, Roundtable of Sustainable Palm Oil

approved palm oils and Animal Welfare guaranteed meats.

A comprehensive scheme for recycling and waste

management is in place. Food portioning and resource

consumption are closely controlled to minimise leftover

and wastage. Food scraps are recycled into animal feed

for a local pig farm. Food waste from canteens and fruit

peels are recycled into fish feed. Inbound glass containers

were transformed into environmental bricks. Waste

cooked oils are converted into bio-diesel. We will step up

our waste management so as to mitigate the potential

impact of the proposed Municipal Solid Waste Charging

of the HKSAR government.

As a catering company, food safety and quality assurance

have always been our top priority, particularly when facing

the outbreak of Ebola virus disease in West Africa. We

intensified all necessary safety and prevention measures.

We conduct over 1,200 microbiological tests a month

on average to ensure consistently high safety and quality

standards.

In enhancing workplace health, safety and productivity,

we have consciously recruited modern machinery to

automate and streamline our food preparation and

material management, in order to reduce accidents,

fatigue and workload of employees. This is very important

for CPCS when frontline staff is composing 80% of our

resource pool. The automatic tilting braising machine

simplifies the production in large quantity of fried rice,

stew, soup and congee. The new omelette making

machine produces 35% more omelettes. The inhouse

Trolley Repair Process Improvement Project helps to save

time. The new 23-meter long automatic tray-setting

machine is purposely designed to assemble one-third of

Cathay Pacific economy class meal trays, doubling the

manual speed setting maximum 400 meal carts daily.

With our interactions with stakeholders, we understand

more about the spectrum of environmental and social

issues that matter our triple bottom line. We put together

our first Materiality Compass (see page 12) to guide our

sustainability journey. Great progress has been achieved

but our journey is far from complete, denoted by an ever-

evolving set of challenges and opportunities. While our

Sustainable Development Steering Committee and Lean

Steering Committee offer strategic leadership, we recently

set up the Environment Committee as a working group

to conceive green activities, build capacity and bridge

communication across the organisation.

Moving forward, we are very confident of the

opportunities presented to us. The Airport Authority

Hong Kong extended our franchise to 2030. Our new

annex facility is being built in full swing, expecting to be

operational in the second half of 2016. The new annex,

incorporating many innovative sustainability features, is

designed to considerably enhance business processes,

operational efficiency, hygiene standard and production

output with much less carbon footprint under the Lean

regime, along with Kanban and visual management

installations. The new green facility aims to be a Gold

certified Hong Kong Building Environmental Assessment

Method (BEAM) Plus building. The combined daily

capacity of the new and current facilities will jump 40%,

total meals prepared will increase to 140,000 meals, and

flights handled will increase 67%. This will put us in a

very competitive position to capitalise on the third runway

expansion of the Hong Kong International Airport. We

will be readily set to serve partially the 30 million more

passengers upon the runway completion in 2023.

We are excited to be at a convergence of evolving business

and sustainability journey. We look much forward to

entering the new era of CPCS that goes beyond catering.

Mrs Jenny LamChief Executive Officer,

Cathay Pacific Catering Services (H.K.) Ltd

September 2015

Cathay Pacific Catering Services (H.K.) Ltd. (CPCS) is one of the largest flight

kitchens in the world. We are also the leading inflight catering solutions

provider in Hong Kong, supplying 65% of the catering market from the Hong

Kong International Airport. In 2014, we supplied 27 million meals for over 40

airlines for 68,000 flights.

Our Business

About CAthAy PACifiC CAtering ServiCeS h K Ltd CPCS


Beyond catering, we seamlessly integrate menu design, authentic cuisines,

quality assurance, inventory control, logistic arrangement and distribution

management of all inflight materials to ensure a pleasant journey for every

passenger. On a daily basis, we uplift 2 million inflight items ranging from

magazines to headsets. We handle around 120 aircrafts with each allowing 45

minutes for cabin dressing for all seats and inflight material replenishment. We

perform over 1,200 microbiological tests a month on average to ensure food

safety. We also run airport lounges, e-shop, coffee kiosks and staff canteen.

We provide 12,000 meals every day to 29 schools, in addition to operating 26

tuck shops.

CPCS has a rich history of airline catering dating back to 1967. It all started

with the name of “Air Caterers Ltd.” at the old Hong Kong Kai Tak Airport,

a cooperative venture between the Swire Group, Cathay Pacific Airways and

Hong Kong & Shanghai Hotels. In 1974, it was changed to Swire Air Caterers

Ltd with the increase of shareholding of the Swire Group. Later in 1992,

Cathay Pacific Airways acquired the entire shareholding and renamed it as

Cathay Pacific Catering Services (H.K.) Ltd..

Our History


2014 Fast Facts & Figures

Inflight Meals Market Share:

Menu Items Handled Daily:

Employees:

Laboratory Microbiological Tests:

Operating Hours: Meals Provision & Cabin Dressing Time: Cold Rooms:

Hi-loaders: Inbound & Outbound Loading Docks:

International Kitchens:

Floor Area of Our Facility:

Airline Customers:

Highest Daily Records:

Total Carbon Footprint in 2014:

Carbon Footprint Per Meal:

Total Meals Prepared in 2014:

65%from Hong Kong International Airport

1,000 menu itemsfor authentic Chinese, Indian, Japanese, Malay,

Singaporean, Middle East and Thai cuisines

Over 1,600 employeesincluding 14 chefs and 800 kitchen specialists

Over 14,400 a year,over 1,200 a month on average

7 daysa week/ 24 hours a day

45 minutesfor each aircraft

90 units

107 units 44 units

5 from Hong Kong,

Taipei, Cebu, Vancouver

and Toronto

50,400 square meter

Over 40airlines

94,002 meals

38,408 tonnes(4.9% increase from 36,617 tonnes in 2013)

1.41kg(1.4% decrease from 1.43 in 2013)

27,187,823 meals(5.9% increase from 25,681,989 meals in 2013)

212 flights about 9 football fields


To be the most valued catering services partner in Asia, we focus on quality

and creativity to support our customers in achieving their ultimate goals.

Strive for the highest quality and safety standards throughout the supply chain.

Research and develop innovative solutions for mutual benefits of all business

partners.

Simplify our systems and processes to make it easy for our customers.

Pursue sustainable business growth to maximise returns on investment.

Engage and develop our people to excel.

Develop environmental and corporate social responsibility leadership.

Our core CREATE values integrate environmental, social and governance

principles in our daily business and operation.

Our Vision

Our Mission

Our Core Values

viSion MiSSion AndCore vALueS

Caring

Respect

Excellence

Adaptability

Teamwork

Ethics

CPCS has a long-standing commitment to sustainable development. We were the first Hong Kong company achieving ISO14001 international environmental certification in 1996. Since then, our corporate management and daily operation have blended in the triple bottom line goals of Prosperity, People and Planet. Our sustainable development strategy strives to create long-term value for our stakeholders and excel as a responsible corporate citizen. CPCS aims at creating a harmonious balance between the company’s triple bottom line goals as a whole.

Our Sustainable Development

SuStAinAbLe deveLoPMent


Our Sustainable Development Steering Committee, led by our Chief Executive

Officer, governs our sustainable development strategy, action plan and

policy. As a best practice, we identify and evaluate the environmental and

social impacts, covering direct and indirect activities, products and services.

We monitor emissions to the atmosphere, the discharges to water, waste,

contamination of land, as well as the misuse of natural resources.

Structure of our Sustainable Development Steering Committee

Steering Committee

Chief Executive Officer

Engineering Manager

Executive ChefOperations Manager

Purchasing Manager

Expansion Programme Manager

Personnel and Training Manager

Operations Production Support

General Manager

Quality Assurance Manager


Our Sustainable Development Policy integrates these five major aspects:

Environmental Policy: CPCS strives to be environmentally responsible by

minimising the impact on the environment.

Occupational Health and Safety Policy: All operations of CPCS will be

carried out in a manner that safeguards the health and safety of all our

stakeholders where it is reasonably practicable.

Employees Policy: CPCS excels to be an employer of choice with

comprehensive support to all employees by providing a fair working

environment with respect and recognition.

Business Partnership Policy: CPCS preaches to our supply chain on our

conviction in sustainable development. We favour suppliers who champion

our sustainable development policy.

Community Policy: CPCS fosters a good relationship with the communities

in which we operate and support its total growth with respect to the people,

culture and heritage.

This report covered the 2014 calendar year from 1 January to 31 December

2014 and addressed the environmental impacts of the Hong Kong operations.

The environmental impacts and initiatives associated with the operations

outside of Hong Kong were not included in this report.

Sustainability is a big topic embedding many different subject areas. It is

essential that we understand our materiality complexity so that we can

prioritise and align our resources accordingly to meet our triple bottom line

goals and fulfil the expectations of our stakeholder groups. While the following

Materiality Compass contains diverse elements that guide our sustainability

journey, we have identified four main categories, namely environment,

governance, stakeholder engagement and value chain, as listed on page 12.

Among which, the following subjects warrant our important attention:

Corporate Governance, Fair and Ethical Practices

Employee, Stakeholder and Community Engagement

Environmental Management including Energy Efficiency and Carbon Reduction

Food Quality and Assurance

Supply Chain Management and Sustainable Sourcing

Occupational Health and Safety

Organisational Development and Work Efficiency

Recycling and Waste Management

Reporting Scope

Materiality Compass


Environmental management

Carbon reduction

Fair and ethical practices

Energy efficiency

Waste management and recycling

Corporate governance

Air quality management

Environment

Legal compliance

Governance

Competitive behaviour

Risk management and anti-bribery

Work-life balance

Stakeholder Engagement

Stakeholder and community engagement

Equal opportunities

Value Chain

Recruitment, development and retention

Employee engagement and communication

Organizational development and work efficiency

Sustainable sourcing and supply chain management

Innovation and operation efficiency

Food quality and assurance

Occupational health and safety

CPCS Materiality Compass

Productivity and efficiency form an integral part of corporate sustainability

and competitiveness. The key drivers behind thriving prosperity are

organisational efficiency and employee productivity, especially for CPCS as

a labour intensive business. Our workforce consists of 80% front line staff.

Facing rising labour costs, pressure on resources and rapid business growth,

we have been consistently reviewing and re-engineering our processes and

structure to streamline our operation and upscale our productivity.

Our Organisation & People Development

orgAniSAtion PeoPLe deveLoPMent


Over the years, we have invested steadily in systems, methodologies and

training to empower our employees, feeling engaged and aligned with our

mission, vision, and values. The more we train and develop our workforce,

the better our performance and the happier our employees. The consecutive

record breaking credentials of meal production and flights handled indeed

are testaments to our concerted efforts and team morale, resulting from

Organisation Development (OD) Project, under the brand as “We Excel Project”

back in 2010.

Launched in 2013, Lean management has been instrumental to simplify

workflows and workplace being more efficient from end to end, as well as to

build team capacity and cooperation among colleagues. Our Lean Steering

Committee was set up to map out the holistic strategy and approach in

translating our mission “Engage and develop our people to excel” into reality.

This year, 94 staff members were trained. A total of 26 departments/

sections cooperated to complete 20 projects, with an annualised saving

of 9,117 man-hours or 1,139 man-days. This was an evidence of our

strong teamwork in achieving operational excellence through minimising

redundancies, wastes and non-value added processes.

Lean Management, Training & Programmes

Identify Customers and Specify Value Identify

and Map the Value Stream

Create Flow by Eliminating

Waste

Respond to Customer Pull

Pursue Perfection Value

Value Chain


Into 2015, we target to launch 25 departmental Lean projects and arrange 2

company visits. We aim to engage 100% Level B/+ staff colleagues to take Lean

leader training and the refresher course through CX Online. All general staff

and new joiners will take Basics Lean introduction. About 100% operations

staff members will be arranged for 5S training. 5S is a simple tool to secure a

safe, clean, efficient, organised and repeatable working manner for productivity.

Externally, we visited and exchanged our Lean management experience with

sister and partnering companies, including Hong Kong Aero Engine Services

Limited (HAESL), Hong Kong Aircraft Engineering Company Limited (HAECO)

and Sheraton Macau Hotel.

Self-DisciplineStandardiseSanitise

Systematise

Business Improvement Lean Team

Structurise

Lean Steering Committee

5SLean Management Poster

Lean Steering Committee Group

identify, decide and facilitate the annual corporate strategic direction

establish project prioritization, framework, templates and guidelines

Lean Sponsors

Lean Champions

Lean Leaders

drive internal alignment, process thinking and problem solving

lead team to conduct improvement projects, take follow up actions,

stakeholder engagement, project milestones, performance metrics,

deliverables and timelines

JAnOur 2014 Highlights

Received the Airport Authority Hong Kong’s Outstanding

Housekeeping Safety Award on 20 January 2014

Equipped 3 new automatic tilting braising machines,

increasing productivity by 110% and 80% respectively

for braising beef and frying rice

2014 highLightS


On 18 April 2014, CPCS again broke the all time record of

daily flights handled with 209 flights

febMAr

On 2 February 2014, CPCS broke the all time record of the

daily flights handled with 206 flights

Received the Clean Air Charter Certification from the

Hong Kong General Chamber of Commerce

Received the Excellence Award from Shenzhen Airlines

JuL

oCtAug

nov

deC

Aurora Airlines, a new airline serves Russia’ Far East Region

appointed CPCS to provide top-up catering services for

passengers and crew with effect from 2 July 2014

CPCS Cebu celebrated 18th Anniversary

On 2 Aug 2014, both the daily meals produced and flights

handled made history, topping 90,801 meals and 212 flights

Palau Pacific Airways, a brand new airline established in 2014,

appointed CPCS to provide full catering services with

effect from 7 November 2014

The new annex facility, adjacent to the CPCS head office,

began construction

Purchased the first electric vehicle with

zero tail-pipe emission

On 20 December 2014, CPCS reached a new height with

94,002 meals prepared on a daily basis

APrReceived the Wastewi$E Label - Class of Excellence of

Hong Kong Awards For Environmental Excellence

Equipped a new omelette making machine,

increasing productivity by 35%

We are a caring caterer. While our business requires full, around the clock support, we do not compromise for quality, consistency and safety. We uphold our high standards from inception through delivery. We carefully design and prepare what to include in our 1,000 menu items daily.

Caring Catering

our CAtering buSineSS


We source the best and the freshest of the season's fare, where possible

locally and organically. Our menus feature a diversity of cuisines from around

the world, offering passengers a choice of wholesome meals to satisfy their

multifarious needs. We have 14 exquisite culinary chefs leading over 800

kitchen specialists from Hong Kong, Vancouver, Toronto, Cebu and Taipei to

prepare 14 types of cuisines: Chinese, Halal, Indian, Japanese, Korean, Kosher,

Malaysian, Middle Eastern, Philippines, Singaporean, Taiwanese, Thai, Turkish

and Western.

We care not only the taste, authenticity and freshness of our meals, but also

the special requirements of every single passenger related to their nationalities,

cultures, religions and dietary specifications, regardless of First, Business,

Premium Economy or Economy class. Specifically, we have a selection of 21

types of special meals, namely: Indian Vegetarian Meal, Baby Meal, Bland

Meal, Child Meal, Diabetic Meal, Fruit Platter Meal, Gluten Intolerant Meal,

Hindu Meal, Kosher Meal, Low Calorie Meal, Low Fat Meal, Low Salt Meal,

Moslem Meal, Low Lactose Meal, Vegetarian Raw Meal, Non-Beef Meal, Liquid

Diet Meal, Vegetarian Vegan Meal, Vegetarian Jain Meal, Vegetarian Lacto-

Ovo Meal and Vegetarian Oriental Meal. All these special meal orders could be

booked 24 hours before any scheduled flight.

Beyond catering, we are committed to supply chain sustainability. We support

sustainable purchasing. Favourable consideration will be given to suppliers

who have proven track records on meeting our sustainable purchasing

policies. We encourage collective actions from suppliers and contractors to

build long-term value for our economy, society and environment through

best responsible practices across the life cycles of foods, goods and services.

Whenever possible, we promote resource efficiency, support local economy,

responsible procurement and sourcing, demanding our suppliers to declare full

compliance to our code of conduct, ethics, anti-bribery in safeguarding fair

business practices, working conditions, human rights, food quality and safety,

in addition to good governance and risk mitigation.

Supply Chain & Sustainable Sourcing


We pledge to preserve our biodiversity and natural resources. Overcatching

endangers some species and the ecosystems. Our choice of opting out

unsustainably produced food items and proactively asking for information

about the source of the food items could create momentum for effective

change in the industry at large. We ensure that the unsustainably produced

food items such as wild bluefin tuna, humphead wrasse, shark (shark’s fin),

snake, sturgeon/paddlefish (caviar), shelled turtle, black moss (fat choy) are

not consumed at company functions or provided as part of our offering.

Principally, we follow the WWF Seafood Guide listing over 60 seafood species

commonly available in Hong Kong and the seafood certification by reputable

organisations such as the Marine Stewardship Council.

Apart from sustainable seafood, we looked into other food categories. Seeing

a revival in the local vegetable farming industry, we deliberately purchased

more local vegetables to enhance our local supply portfolio in Hong Kong,

such as spinach and hydroponic salad greens. 70-80% vegetables were

sourced locally from the Mainland China. Our desire is to progressively

decrease imported vegetables and carbon intensity, while lending support

to local community and prosperity. Increasingly, we will step up our sourcing

for Rain Forest Alliance certified produce, Roundtable of Sustainable Palm Oil

approved palm oil and Animal Welfare guaranteed meats.

We are an ISO 9001 and Hazard Analysis and Critical Control Point (HACCP)

certified company producing a diversity of world-class quality international

cuisines. We comply fully with the International Air Transport Association

(IATA) Inflight Catering Quality Assurance Programme. Since the beginning,

food safety and quality are our top priority. CPCS has its own in-house

microbiological testing laboratory, testing over 1,200 samples per month

on average; the samples are drawn at random points in the manufacturing

process. Our production facility is built with a single flow design with

segregated preparation areas and respective dedicated Kitchens for Hot, Cold,

Bakery, Pastry, Japanese, Special Meals, Kosher and Halal food to ensure the

highest standards of food hygiene, safety and compliance standards. We serve

the best of the season’s quality and nutritious ingredients based on scientific

food safety systems that meet our stringent standards. We encourage our

suppliers to comply with the HACCP system that controls biological, chemical

and physical risks in raw materials during manufacturing and distribution.

Food Safety & Quality Assurance


Research and Development is a key aspect of our sustainability. Our aim is to

create unique and authentic menus that fulfil the budgets and needs of our

customers and their passenger-customers. We constantly source, test and

explore new ingredients and technologies to refine our product base and

diversify our cuisine options, with respect to taste, visual appeal, production

standardisation and equipment automation. We make sure that all the

food served complies with the International Air Transport Association (IATA)

requirements. Every year, we create about 40 new dishes for all travel classes.

Management Information System drives daily efficiency and innovation.

We are proud to have developed our own Air Caterer Enterprise Resource

Planning (ACERP) system integrating warehouse inventory automation,

real-time flight tracking and instant data access of from flight movements and

meal orders to food production and temperature records. We are up-scaling

our infrastructure, such as the centralised storage to save space and power

consumption. Additionally, we are revamping our printing and document

management solutions to reduce paper usage.

Research & Development

Management Information Innovation

The list below denotes our pledge to environment, quality, safety and waste management.

Det Norske Veritas Classification A/S

ISO 14001:2004 Environmental Management System (1996-2014)

ISO 9001:2008 Quality System (1999-2014)

Hazard Analysis and Critical Control Point (HACCP) based Food Safety System (2011-2014)

Hong Kong Council of Social Service - Caring Company (2003-2014)

Shenzhen Airlines - Excellence Award (2014)

Hong Kong General Chamber of Commerce - Clean Air Charter Certification

Indoor Air Quality Certification Scheme (Good Class)

Airport Authority Hong Kong - Hong Kong International Airport (HKIA)

Carbon Reduction Programmes (2010-2015)

Hong Kong Awards For Environmental Excellence - Wastewi$E Label (Class Of Excellence)

Certifications & Recognitions

beyond CAtering


There are challenges and responsibilities associated with environmental

management operating inherently in an international airport. At CPCS, we

have effective systems, measures and skilled workforce in place to address so.

Air quality has been a key concern in Hong Kong. In 2014, we purchased our

first electric vehicle with tail-pipe emitting zero carbon. All vehicles and fleet

underwent regular maintenance to ensure emission compliance to the Airport

Authority Hong Kong standard. Even the indoor air met a quality standard and

achieved the Indoor Environment Quality certificate.

In 2014, our carbon footprint indicated an impressive annualised reduction of

672 tons with major investments and installations:

In 2015, we have significant plans to replace 5 aged air cool chillers and install

2 heat pumps with more efficient models. It is estimated that about 2,700 tons

of carbon emissions could be saved annually.

For the past few years, we have actively participated in industry partnership,

such as the HKIA Carbon Reduction Programmes organised by the Airport

Authority Hong Kong. Compared with the previous year, the carbon intensity

per meal reduced 1.4% to 1.41kg in 2014, from 1.43kg in 2013, reversing the

5.9% increase or 27,187,823 total meals prepared in 2014 from 25,681,989

meals in 2013. The total carbon emissions rose 4.9% to 38,408 tonnes in

2014 from 36,617 in 2013. Compared with the baseline year 2008, the carbon

emissions reduced 25%.

Environmental Management, Energy Efficiency & Carbon Reduction

5,000 LED tubes were

installed at G/F Inbound,

Outbound, Equipment Packing,

Cutlery Packing and 2/F Tray

Set, Dishing and PRO corridors,

saving 523 tons of carbon

emissions annually.

40 old condensers were

replaced to enhance heat

exchange efficiency, saving

100 tons of carbon emissions

annually.

285 LED lights were installed

at staircases, saving 24 tons of

carbon emissions annually.

14 LED spot lights were

installed at the roof above

inbound and outbound parking

bays to replace the high-

power consuming traditional

spot lights, saving 25 tons of

carbon emissions annually.

Condensers at roof


The total meals produced increased 5.9% but carbon footprint per meal

reduced 1.4%. How did we make it happen? Apart from equipment upgrade,

we also established and enforced various measures that were reported to the

Airport Authority Hong Kong twice a year, with some highlights listed below:

Reduced refrigerant leakage. Upgraded aging refrigeration components and

control software.

Replaced blast chiller's air cool with water evaporator.

Installed heat recovery system at steam boilers and heat pump technology

from air-conditioning to reuse waste heat to heat water.

Installed timers and sensors for the air-conditioning system and LED lights

whenever possible.

Increased staff awareness. Monitored energy consumption. Increased indoor

temperature by 1-2°C.

Adopted "automatic lights-off" policy. Switched off the company logo

outside the building at 1 am every day.

Reduced waste by adjusting food portion. Recycled aluminium cans, plastic

bottles, carton boxes, paper, magazines, used cooking oil, food, batteries,

light tubes, wine bottles and animal fat.

Installed plastic curtains in outbound cold rooms to reduce temperature by 1°C.

Purchased an electric vehicle. Phased out all Euro II hi-loaders.

15,081 14,749

29,423 31,439

-7,887TotalCO2: 36,617

Scope 1

Scope 2

Scope 3

TotalCO2: 38,408

2013 2014Meals: 25,681,989

kg-CO2 per meal: 1.43Meals: 27,187,823

kg-CO2 per meal: 1.41

-7,780

Airport Authority Hong Kong HKIA Carbon Reduction Programmes

At Cathay Pacific Catering Services (H.K.), it is a significant part of our

continuing commitment to reduce our carbon footprint with more energy

efficient systems to enhance the environment and air quality. CPCS has been

very supportive of the HKIA Carbon Reduction Programmes of the Airport

Authority Hong Kong and shall continue to collaborate with the airport

community to reduce carbon emissions and preserve our natural environment.

Quality Assurance Manager

Tonnes of CO2-e


We value cooperation with like-minded partners. Besides the Airport Authority

Hong Kong, we have plans in 2015 to join the CLP Green Plus campaign,

comprising of Green Talk, Desk Plant DIY workshop, Green Mind Logo

creation, in addition to heat reduction film installation and motion sensor LED

light tube installation.

CPCS closely reviewed and monitored our resource consumption. In particular,

the food portioning and control process was strictly enforced to minimise

leftover and wastage. A comprehensive scheme for recycling and waste

management was in place. Food scraps, leftovers and end cuts were recycled

into animal feed for a local pig farm. We partnered with the Airport Authority

Hong Kong to upscale the scope by recycling the food waste and fruit peels

from our canteen for the production of fish feed. Inbound glass containers

were transformed into pavement bricks. Waste cooked oils were converted

into bio-diesel. Paper items were recovered into paper products and carton

boxes. Plastic items were reconditioned into textile products and plastic

containers. Metal items were recast into ingots. Unopened food items from

inbound flights were donated to help the needy and reduce landfill burden. In

a trial run in late 2014, 610 boxes of 1litre tetra pack juices were donated to

a local food bank. We are working to resolve the logistic and safety aspects to

make this a regular programme.

Recycling & Waste Management

Paper

1,692,420 kg

27,011 LFood Processing Oils

Food Scraps Glass

Plastic

Metal

687,779 kg 524,530 kg

41,692 kg

33,491 kg

2014 Recycled Materials


All our operations are carried out in a manner that protects the health and

safety of all our employees, contractors, suppliers and other stakeholders. An

external independent auditor conducts our Occupational Health and Safety

performance annually. All new joiners have to attend safety training as part of

their orientation and handbook. Annual refresher courses are arranged, along

with continuous promotion via website, notice boards and staff newsletters.

As a labour and process driven business, we constantly invest in modern

machinery to streamline the food cooking process, in reducing staff workload,

safety incidents and injuries. The three new automatic tilting braising machines

increase productivity by 110% and 80% respectively for braising beef and

frying rice. The new omelette making machine produces 35% more omelettes

than the old one. The Trolley Repair Process Improvement Project helps to

save time. The tool storage was reorganised by using the 5S methodology to

facilitate tool location.

During 2014, there was not a single fatality case. The workplace safety

incidents and injuries recorded 90 cases.

With a large service team and more than 135 fleet vehicles, we rolled out the

following initiatives in 2014:

A new Safety Driving Video was produced. New better safety shoes and anti-

laceration gloves were adopted.

New LED lights were installed at outbound and inbound loading docks to

increase visibility and safety for evening driving.

Guide men’s hand signals were standardised to better navigate drivers when

approaching an aircraft in the ramp area.

Employees demonstrating excellent safety practice were rewarded.

We hope to maintain our zero fatality remit through robust training

programmes, standardised guidelines, streamlined processes and employee

efforts that continue to foster a healthy and safety culture year over year. Our

work is not finished and additional efforts such as new safety ramp operation

video, stretching exercise program, safety driving campaign and promotional

banners will be carried on.

Occupational Health & Safety


Our employee and community engagement is rooted in our core values. These

values have become visible through various employee corporate donation,

volunteering, social and environmental initiatives. In 2014, our Champion

Group organised focused activities to promote our core values: Caring,

Respect, Excellence, Adaptability, Teamwork and Ethics. Our management

team served front-line colleagues in the canteen. Cooking Competition

and Photo Competitions were held successfully to promote Teamwork and

Excellence. The new Excellence Award bestowed 105 outstanding colleagues

who went the extra mile.

We are well aware that engaged employees are healthier and happier. They

are more motivated and productive, less vulnerable to incidents and injuries.

A variety of professional and community programmes are arranged and

communicated, on a regular basis both internally and externally, through

meetings, newsletters, websites, campaigns, exhibitions, education and

training encompassing environmental protection, recycling, volunteering,

donation, family visits, Lean management, occupational health and safety, but

to name a few.

For environment and community programmes, we participated in the World

Wide Fund’s Earth Hour to switch off all non-essential lighting for one hour.

An eco tour was organised to embrace the lustrous green and learn about

renewable energy on the Lantau Island. On the SWAP Day, 800 items (toys,

books and small electrical appliances) were collected with half being swapped

and the remaining were donated to Hong Kong Sheng Kung Hui Tung Chung

Integrated Services Centre. The swapped fund was donated to UNICEF. We

also joined our sister company Swire Properties to collect and donate moon

cake boxes, wall calendars and red packets and food items to local community

groups such as True Light Villa District Elderly Community Centre and Greeners

Action.

Employee & Community Engagement


On the school front, we carried on engaging and educating schools on using

food waste decomposer machines, in order to minimise and separate food

waste with the meals at schools. In 2014, via our Deli Fresh, we approached 5

schools to join these programmes, receiving positive feedback from the Parent

Teacher Associations.

We engaged a social enterprise in Tung Chung, Hong Kong Outlying Islands

Women's Association, to perform Economy Class cutlery packing and

prepared the processing of certain vegetables. We also provided food hygiene

training and operation hardware, logistics and relevant technical support. Our

employee volunteering team served the underprivileged ones in Tung Chung

too. During festive seasons, they donated mooncakes in Mid-Autumn Festival

and gifts in the Chinese New Year.

In 2014, the team participated in the Healthy Walk and Elderly Day Celebration

Function in support of the needy families and the seniors in Tung Chung.

Additionally, CPCS and staff members contributed to the following:

The Hong Kong Institute of Certified Public Accountants - Hong Kong Grand

Prix Pedal Kart Race

The Community Chest of Hong Kong

Hong Kong International Airport - Charity Run

Hong Kong Sheng Kung Hui Integrated Services

Hong Kong Youth Hostels Association - Ngong Ping 360 Charity Walk

Orbis

Rehabilitation Schools

St. James’ Settlement - People's Food Bank

United Nations Children’s Fund

Our stakeholders are varied and many, including our shareholders, over 40

airline customers, hundreds of suppliers and business partners, thousands of

employees, millions of passengers and community neighbours. Stakeholder

engagement is central to our service and quality enhancement. Through

regular communications and open dialogues, we understand what the

stakeholders, customers and markets demand. We could then promptly

address any concerns and associated risks, as well as to proactively capitalise

on emerging trends and opportunities. We employ a diversity of training,

newsletters, websites, online tools, interactive meetings, workshops,

conferences, visits, surveys and exchange programs to build and maintain

mutual dialogues with our stakeholders.

Stakeholder Engagement


In 2014, through inflight passenger questionnaires, we received 367

compliments with 89 % related to food and 11% related to services.

I would like to give my sincere compliment to my caterer. He was very

helpful, friendly, responsible and reliable. He carefully checked every single

food item with me and he paid attention to small details even like a plastic

cover of food garnish. He always confirmed with my understanding to ensure

he has given me a clear briefing. This was not my first time to meet him on

my flights but I noticed that he has been performing his excellence every time

when he worked. He is the best caterer I have met so far, please kindly pass

my appreciation to him and give him rewardful recognition if applicable.

The quality of the inflight meals was superb, as in my previous experience

with SQ. No matter it was western or oriental cuisine, bread or pasta, meat

or vegetable, etc., the taste and texture were definitely great and no other

airlines I flew before…! Again, it's not easy for an airline to maintain the high

standard throughout years, and in various flights. And you may have heard

most people did not consider inflight meals delicious. However, that's not

the case in SQ. Again, you did it, and you really raised the benchmark for

services, food and beverages in the airline industry.

Let me start by saying a big thanks to you and your team for the successful

meal presentation held at CPCS Inflight services. It was really an achievement

to get the dishes right for our New Frontier menus and it was one of

the smoothest and best presentation we have had. Thank you for the

overwhelming hospitality and unforgettable unique experience. Kindly convey

our sincere regards and good wishes to chef Jorg and the great chefs team.

a compliment dated 26 August 2014 from a First Class passenger

a compliment dated 5 September 2014 from an Economy Class passenger

a compliment dated 24 July 2014 on QR meal presentation


Adjacent to the CPCS headquarters, the new annex facility embodies a

spectrum of state of the art innovative and sustainable features, ranging from

material, energy and water use to high-efficiency construction methods. It

aspires to be certified as a BEAM Plus Gold Standard building. BEAM Plus is

a comprehensive environmental assessment scheme for buildings recognised

by the Hong Kong Green Building Council. The new environmental friendly

facility is designed to considerably enhance our business processes, operational

efficiency, hygiene standard, energy efficiency and carbon reduction, under the

Lean regime, Building Information Modelling, Kanban and visual management

installations. These approaches come together to deal with design, product

and process complexity, saving process waste up to 32%.

Compared with the current facility, the new annex will incorporate water-

cooled refrigeration system that is 30% more energy efficient than air-cooled

systems. New ware wash technology is expected to save 20% in water and

energy consumption. Specialised vertical cold storage towers will immensely

improve cooling efficiency for the out-going meal carts, a critical aspect in

meeting hygiene standards.

As our major investment, we must ensure a sustainable return that raises our

operational productivity, energy efficiency and workplace vibrancy to the next

level. We have already mapped out our five-year Lean programme to empower

our colleagues with the effective methodologies and tools.

The construction of the new annex commenced in December 2014 is expected

to be operational in the second half of 2016. Combining the current and new

facilities, the daily capacity will jump 40%, from 100,000 to 140,000 meals

and from 180 to 300 flights.

New Green Annex Facility

At CPCS, we are proud of our reputation as a responsible corporate leader for

fair dealing and integrity in the catering business. We have a very robust set

of Code of Conducts that govern the best practices and maintain the highest

standards of products, services and behaviour among employees, suppliers,

business partners and other stakeholder groups. Our Code of Conducts

includes but not limited to: business ethics, bribery, discrimination, harassment,

disability, procurement, personal hygiene, dress code, equal opportunity,

intellectual property, occupational health and safety. In 2014, there was no

case of non-compliance or violation of any code of conducts from employees,

suppliers or any stakeholders.

Corporate Governance


The year 2014 saw significant developments in the history of CPCS and the

aviation industry in Hong Kong. CPCS’ franchise agreement is extended to

2030. CPCS’ new annex is set to operate in 2016. Hong Kong’s new third

runway is expected to complete in 2023. As the largest caterer in Hong Kong,

we are very excited about serving potentially and partially 30 million more

passengers in one of the world's busiest airports.

At the same time, we realise that as our business prospers, so does our

responsibility to lead towards a more sustainable future. Between the covers of

this report, it is evident that sustainability has become an integral, normal part

of our operation, culture and the new facility in the making. Whilst much more

work lies ahead, we are determined to shift to a positive legacy where our

service will continue to create high value for our customers while contributing

positively and meaningfully to the local economies, communities and the

natural environment.

ConCLuding reMArKS

sustainability report 2014 - cathay pacific catering

Documents