Environment

We believe that business growth should not come at the expense of the environment. By focusing on reducing greenhouse gas emissions, improving energy efficiency, conserving water and reducing waste, we are driving towards our objective of having minimal impact on the environment.

In order to achieve this objective, we encourage practical innovation, invest in technologies and businesses that help reduce environmental impacts and generate long term growth, and drive towards the highest standards of operational efficiency. Swire also addresses broader environmental issues that have been identified as being material to our businesses, including noise pollution, air quality, and biodiversity. We work with other leading companies and advocacy groups to share best practices, and fund appropriate research and development.

Managing our Greenhouse Gas Emissions

We believe that climate change is a risk to our business. Reductions in greenhouse gas emissions are necessary in order to mitigate climate change. In 2014, Swire Pacific signed the Trillion Tonne Communique, a global call for proactive policy response from governments to work towards net zero emissions. Although the Aviation Division accounts for the majority of our emissions, we encourage all operating companies to set targets to reduce their emissions. Our emissions reduction strategy has three components: Reduce, Renew and Offset.

REDUCE

  • Cathay Pacific has set a target of improving fuel efficiency by 2% per annum between 2009 and 2020. In 2014, fuel efficiency improved by 2.2%. It supports International Air Transport Association's target of carbon neutral growth by 2020. The airline manages its emissions by using more efficient aircraft and engines, by improving operational efficiency (through monitoring fuel consumption, reducing weight and washing engines), and by improved route planning and airport procedures.
  • Swire Pacific Offshore ("SPO") has a Fuel Efficiency Management System which provides real time fuel consumption information. This facilitates judgements as to the optimal speed that vessels should go in order to minimise consumption.

RENEW

  • In 2014, Cathay Pacific made a minority investment in Fulcrum BioEnergy, Inc., a US based biofuel developer pioneering in converting municipal solid waste into sustainable aviation fuel. An offtake agreement with Fulcrum will see Cathay Pacific receive 375 million US gallons of sustainable jet fuel over 10 years.
  • In 2013, Swire acquired Argent Energy, which pioneered large-scale commercial biodiesel production in the UK in 2005. The award-winning Scottish company produces biodiesel from used cooking oil from the food industry, tallow from the meat industry, and sewer grease. In 2014, Swire Pacific increased its minority investment in Green Biologics, a biotechnology company developing renewable chemical and biofuel technology.

OFFSET

  • SPO's forest conservation project in Paraguay has generated over 7,500 tonnes of carbon credits since 2011. This REDD+ (Reducing Emissions from Deforestation and Forest Degradation) project is certified under the Verified Carbon Standard and the Climate, Community and Biodiversity Alliance.
  • James Finlays Kenya is in process of developing a project to generate carbon credits from clean cook stoves.
  • Cathay Pacific offset 13,300 tonnes of carbon in 2014 through FLY greener. These offsets are small but play an important part in raising awareness among passengers and staff regarding climate change.
Energy Efficiency

Electricity consumption is our second largest source of greenhouse gas emissions after jet fuel. Making our buildings and operations more energy efficient is a priority.

We encourage our operating companies to reduce energy use and set efficiency targets:

  • Our operating companies exchange information about energy efficiency through our Energy Committee. We have identified opportunities to save an estimated 82 million kWh of electricity per year.
  • Swire Pacific's Sustainable Building Design Policy requires all new facilities and substantial renovations to attain at least the second highest international or local green building certification.
  • Swire Properties aims to reduce electricity consumption by 52 million kWh per year by 2020. Energy intensity decreased by 3% in 2014.
  • United States Cold Storage ("USCS") has achieved a 20% increase in energy efficiency since 2009. Their average energy intensity in 2013 was 1.04 kWh per cubic foot, well below International Association of Refrigerated Warehouses Industry's average of 1.31kWh/ft3. USCS aims to achieve a 1.5% increase in efficiency year on year.

We encourage the use of renewable energy in our operations:

  • Almost three quarters of the energy used by Finlays comes from renewable sources - micro hydropower plants, solar energy and biogas.
  • Swire Cold Storage has installed a 100kW solar PV system at its Lurnea 3 site in Sydney. The system will generate approximately 140,000kWh of electricity per year. In 2014, Altus Logistics, a subsidiary of SPO, installed 3,600m2 of solar panels on the roof of its warehouse in Singapore. This is designed to generate 152,000 kWh of electricity per annum and to reduce electricity costs by an estimated 45%. Starting in 2015, Kalari will install 1,003 solar panels across its sites which will generate 40 to 60 per cent of its required electricity consumption, and reduce carbon emission by 168 tonnes per year.
Water Stewardship

We depend on clean and reliable sources of water, especially in our Beverages and Food Chain Division. We have pledged to be responsible stewards by seeking ways to reduce water use in the production of our goods and services, and at the same time establishing long-term partnerships that contribute to sustainable use of water in our communities. Our water stewardship efforts are led by three guiding principles: Reduce, Reuse and Replenish. Swire Beverages, accounting for approximately one third of total water use within Swire, implements the ‘three R' principles as follows:

REDUCE

  • Swire Beverages has achieved a 31% improvement in the Water Use Ratio ("WUR") since 2005. The WUR is used to measure the total amount of water used in the product and cleaning of production facilities and beverages bottles, to produce one litre of beverage.
  • Our bottling plant at Luohe in Mainland China's Henan Province has the lowest water and energy usage per litre of product of all Swire's bottling plants. The facility has implemented more than 49 environmental solutions, many of which have also improved production efficiency. The plant has been certified for platinum rating under the Leadership in Energy and Environmental Design (LEED) certification.

REUSE

  • All wastewater is treated so that it meets or exceeds legal requirements and can be safely returned to the environment. Some water is reused within the bottling plant in cooling towers or for car washing.
  • In the Zhengzhou bottling plant in Mainland China, 100% of wastewater is treated before being used by the municipal government in an urban city park. It allows our plant to achieve full reuse of treated wastewater while enabling the city to avoid using 200 million litres of fresh water per year – the equivalent of 80 Olympic-sized pools.

REPLENISH

  • Swire Beverages aims to achieve water neutral by 2020.
  • Our flow restoration projects in Chalk Creek, Utah, and Jesse Creek, the water source for Swire's Fruitland bottling plant in Idaho, USA, have restored stream flows of almost 300 million litres per year, which is enough to fill 120 Olympic-sized pools.