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Performance and outlook

We’re committed to safeguarding precious water, reducing our carbon footprint, creating sustainable packaging, and managing waste sustainably.

Key metrics

When we set ourselves environmental sustainability targets in 2008 we were determined that they should be challenging – and meaningful. With the exception of water efficiency, we opted to set absolute commitments for 2015 which acknowledged that our existing impacts should be reduced in real terms, regardless of the future size of the business.

We focused on the main impacts of our operations – water, carbon, and waste to landfill. In 2009, we expanded our approach to include sustainable packaging, recognising its impact throughout the value chain, from our suppliers through to the consumers who drink our brands.

While recognising that there is still a long way to go, it is encouraging to report this year that we have made progress against all of our operational targets, and against two out of our three packaging targets – all while our business has continued to grow.

Progress against operational targets
Targets by 2015 2012 performance (%) Cumulative performance (2007-2012) (%) Achievement
Reduce carbon emissions by 50% 9.4 22.0 On track
Improve water efficiency by 30% 7.2 19.0 On track
Reduce water wasted at water-stressed sites* by 50% 8.6 14.5 On track
Reduce polluting power of wastewater by 60% 9.0 -11.2 On track
Eliminate waste to landfill 20.5 56.8 On track

* According to the United Nations Department of Economic and Social Affairs, water stress occurs when annual water supplies drop below 1,700 cubic metres per person. When supplies drop below 1,000 cubic metres per person per year, a country faces water scarcity for all or part of the year.

Progress against operational targets in efficiency format (by litre of packaged product)*
2012 performance (%) Cumulative performance (2007-2012) (%)
Reduce carbon emissions by 50% 11.6 25.2
Improve water efficiency by 30% 7.2 19.0
Reduce water wasted at water-stressed sites* by 50% 20.9 28.0
Reduce polluting power of wastewater by 60% 11.3 -6.7
Eliminate waste to landfill 22.5 58.6

* Carbon emissions (grams CO2 / litre of packaged product); water efficiency and water wasted (litre / litre of packaged product); wastewater (grams / litre of packaged product); waste to landfill (grams / litre of packaged product).

Progress against packaging targets
Targets by 2015 2012 performance (%) Cumulative performance (2007-2012) (%) Achievement
Reduce average packaging weight by 10% 1.6 4.8 On track
Increase average recycled content across all packaging to 42% 0 35.0 Off track
Make all packaging 100% recyclable/reusable 0.3 98.3 On track

Reviewing our targets

In 2008, we set environmental targets based on baseline data from the financial year ending 30 June 2007, with the aim of achieving these targets by 2015. Since setting these targets and reporting our performance against them, we have included acquisitions and disposals and reset our 2007 baseline data applying the principles of the WRI/WBCSD Greenhouse Gas Reporting Protocol.

Until 2011, these acquisitions had relatively minor implications for our overall impact on the environment – typically less than 5%. However, in 2011 we announced plans to buy several larger businesses. In our 2011 Sustainability & Responsibility Report we said we would review the implications of these proposed acquisitions for our Environmental Reporting Guidelines, in terms of the total volume of production and overall impact on the environment. This review was completed in January 2012, and concluded that there would be no change to the Environmental Reporting Guidelines, and that we would continue to incorporate new acquisitions in our 2007 baseline with no change to our 2015 environmental targets – thus reaffirming our commitment to absolute reductions in key environmental impacts despite continued business growth.

Outlook

While we are making good progress towards meeting our commitments, the future is always uncertain and the environmental challenges facing all businesses are likely to become more, rather than less, difficult. Further, as the world’s leading premium drinks business, we have committed ourselves to absolute reductions, in the knowledge that each new gain becomes incrementally harder to achieve the closer we get to our targets.

We recognise that our targets do not cover every aspect of our business and value chain, so our task of becoming truly sustainable is not limited to these commitments alone. With this in mind, we will continue to innovate where necessary, and continuously improve the environmental management of our value chain, which includes developing a better understanding of the environmental impacts of our key suppliers.

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