Corporate Social Responsibility

• The Environment
• Global warming and energy conservation
• Air pollution and noise reduction
• Water conservation and liquid waste
• Solid waste and materials efficiency

In Australia, Transwest's Environmental Services division has a seven-year contract to compost organic waste collected within the Colac Otway Shire in Victoria. The innovative collection and processing system has resulted in the local council achieving the State Government target of 50% reduction of landfill waste. Organic waste is composted using an in-vessel system developed by Transwest, which allows for the control of odours whilst producing quality compost in 10 days. Compost is sold back into the community for use in gardens, and also by the council's parks and gardens department.

In Hong Kong, Swire SITA works closely with the Government's Environmental Protection Department (EPD) to design long-term solid waste treatment solutions. The company employs the latest technology in the collection, compaction and transportation of containerised waste to its managed landfill sites from urban Hong Kong and the many outlying islands. In conjunction with the EPD, Swire SITA has set up two pilot recycling plants intended to test recycling feasibility. The first plant recycles electrical and electronic 'white goods', while the second is for sorting and recycling of domestic waste. Paper, cardboard, plastics, metals and glass are sorted from the waste stream and conditioned for sale to local recyclers. Through subsidiary Waylung Waste Services, the company has a contract to compost all of Hong Kong's livestock waste - around 7,500 tonnes a year.

Swire Properties takes great care to minimise the production of waste at demolition sites, by recycling materials such as aluminium, steel and even concrete, rather than sending them to the landfill. Swire Properties' One Island East development at Westlands Road set a new industry benchmark by minimising the proportion of waste from a demolition site going for landfill disposal to only one percent; this was achieved by using concrete crushers on site. In the construction of Cambridge House and Three Pacific Place, the use of pre-cast elements and pre-fabricated building services components significantly reduced construction waste and installation time, as well as improved building quality.

Swire Properties has pioneered the use in Hong Kong of 3D design software created by Gehry Technologies and known as Digital Project on the development of One Island East; use of this design tool assisted the calculation of precise quantities of construction material, allowing the company to 'design out' around 15%-25% of construction waste. Swire Properties seeks to promote recycling practices in large ways and in small: providing recycling facilities at residential properties and motivating contractors and tenants to adopt good recycling practices. It is estimated that some 3,300 tonnes of food waste per day is generated in Hong Kong - the majority of which inevitably ends up in the landfills. In an effort to minimise organic waste generation, Festival Walk is currently piloting a food waste digester that treats organic waste through a process of accelerated fermentation, so that it ultimately ends up as 95% water and CO2 and 5% residue, which is dissolved into discharge water by means of biotechnology.

Cathay Pacific operates a wide-ranging recycling and waste minimisation programme across its aircraft and ground operations, recycling everything from aircraft fuel for use in ground vehicles, to aircraft tyres, paper, aluminium, plastic, used printer cartridges, floppy disks and food scraps. The airline is currently studying the replacement of traditionally plastic in-flight materials with biodegradable alternatives. Cathay Pacific is also a member of the Hong Kong Government-led waste-reduction initiative, Wastewi$e. Waste arising from aircraft maintenance, fit out and the renovation of aircraft interiors is either resold or disposed of in an appropriate manner by the airline's engineering contractors, HAECO in Hong Kong and TAECO in Xiamen. These initiatives have generated savings for the airline amounting to several million Hong Kong dollars.

Swire Pacific companies actively seek to eliminate waste by practising materials efficiency. Since 2005, Swire Properties made significant progress towards the design of an Environmental Procurement Portal to provide staff with interactive, step-by-step guidance on procuring products that are less harmful to the environment, or use energy and/or resources more efficiently. Swire Beverages has successfully reduced the quantity of packaging material it uses and now selects material better suited to recycling. Several plants have reduced the quantity of paper wrapping required for cartons. In Hong Kong, Swire Coca-Cola's successful use of thinner aluminium cans without compromising product quality has achieved a material saving of nearly 10%.

Swire companies have proved time and again that while green initiatives may cost money to implement in the short term, in the longer term, many will bring substantial cost benefits. So taking a responsible and proactive stance on environmental issues is not just a luxury only large corporations can afford: it is a sound investment in the sustainable future of any business. Our message is that small-scale efforts are just as important as the high-profile ones and doing the right thing to our environment needs not depend on costly investment in new technology. This is why, over the last few years, we have tried to engender a whole new corporate culture, and to encourage individual Swire operating companies to apply such thinking to their own businesses, by incorporating sustainable development goals in their future budgets and business development plans - because sustainable corporate development needs to be embedded into core business models, rather than being treated as a desirable afterthought.

Experience has shown that a good, transparent environmental reporting system is an excellent communications and marketing tool that can generate a very real competitive advantage. Likewise, a sound environmental track record demonstrates that a company possesses an enlightened and disciplined management structure - a critical catalyst for success - making it attractive to investors and fund managers.

But environmental best practice is not just about improving one's image and one's bottom line: it is also about doing right by society, the environment and the economy, and avoiding costly trade-offs between them. It is Swire's aim to encourage the widest possible environmental awareness amongst our corporate family and the community as a whole. Green forums and workshops, widespread recycling campaigns, and activities such as beach cleaning, farming, environmental fun days and fairs have all helped to encourage a deeper appreciation of nature amongst our staff and to make environmental responsibility a part of their everyday lives. In conjunction with Friends of the Earth, Cathay Pacific has funded the planting of 10,000 trees in Hong Kong. A number of companies, such as Swire Coca-Cola HK, have also taken the message into schools, organising the School Environmental Creativity Challenge to teach youngsters about recycling, and a series of workshops on sustainable development for secondary students. Swire has also completed two educational videos in three languages, promoting simple ways in which a responsible approach to the environment can be adopted at both a corporate and a personal level. We believe that only by raising awareness of environmental issues can we hope to ensure our children will live in a clean and healthy world.

A founder member of the Hong Kong Business Environment Council, Swire joined the ranks of the prestigious United Nations Global 500 Roll of Honour in 1997, in recognition of its commitment to environmental best practice.