Reducing the Environmental Impact Across the Entire Value Chain

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Reducing the Environmental Impact Across the Entire Value Chain We coexist with Nature by committing to “Water Sustainability” and reducing environmental impact. Reducing the Environmental Impact Reducing the Environmental Impact Across the Entire Value Chain The Suntory Group is working on water conservation and energy conservation at plants, developing lighter containers and packaging, and installation of energy-saving vending machines in order to reduce environmental impact throughout the entire value chain. The Lowest Level of Water Usage Achieved per Unit Enhanced 3Rs for Water to Reduce Water Usage Production in the Industry The Suntory Group’s plants use a great deal of water in, A variety of activities related to the 3Rs are being for example, cleaning production equipment and cooling, implemented at the Minami Alps Hakushu Water Plant of in addition to that used as an ingredient in our products. Suntory Products Ltd. In particular, thanks to our use of a In order to conserve limited water resources, we sophisticated “water cascade*” recycling process, we are an intensify our activities to achieve targets toward 2020 of industry leader in terms of per unit production in relation “Reduce water consumption at the Suntory Group*1 plants to the volume of water used. 2 by 35%* ” through enforcement of 3Rs for water, ensuring * Water used in the manufacturing process is classified into five grades, such that the minimum amount of water is required (Reduce), as coolant water and cleaning water, based on cleanliness. This technology water can be used repeatedly (Reuse), and water can be allows plants to recycle water to be used in subsequent processes, for example, using the highest grade water in the most demanding process, processed and used elsewhere (Recycle). In 2013, Suntory and recycling it for use in a process with less stringent requirements. plants carried out water conservation activities, and achieved 21% reduction compared to 2007 in water usage Comprehensive Waste Water Management per unit production. The Suntory Group established voluntary standards for *1 The group of companies that covers more than 80% of the Suntory Group’s waste water that are stricter than the legal regulations and sales for 2012 (including overseas companies) manages quality so that we may release waste water in a *2 Reduction per unit production based on the business areas in 2007 state as close to nature as possible. Waste water from our plants is first purified using anaerobic waste water Water usage (at 24 plants in Japan) treatment facilities* and other equipment before it is ■Usage Per unit production released into sewers and rivers. Inspectors use measuring (1,000m3) (m3/kℓ) equipment to take daily readings of things like water 25,000 20,427 20,186 20,879 21,395 21,562 15.0 quality under a constant monitoring regime. 20,000 12.0 7.0 15,000 5.9 5.8 5.6 5.2 9.0 * A treatment method that decomposes pollutants using microbes 10,000 6.0 (anaerobic bacteria) 5,000 3.0 0 0 ’07 ’10 ’11 ’12 ’13 Overview of business activities and environmental impact (from January 1 to December 31 in 2013, manufacturing facilities in Japan, excluding outsourcing contractors) INPUTS Business Processes OUTPUTS • Packaging materials 404,000t • Glass bottles 107,000t • Aluminum cans 41,000t • Steel cans 65,000t Procurement • PET bottles 70,000t • Cardboard boxes 99,000t • Others 22,000t • Ingredients 423,000t Production volume 4,169,000kℓ • Waste water 16,830,000m3 (alcoholic and non-alcoholic beverages) • BOD*1 released into public water bodies t • Water 21,562,000m3 45 2 Production • Air emissions CO2* 342,000t SOx t • Electricity 299 million kWh 2 NOx 139t • Waste and by-products t • Fuel (converted to crude oil) 109,000kℓ 266,000 • Air emissions CO2 t Distribution 110,000 NOx 288t • Containers 7,471 million Glass bottles 316 million Consumption Aluminum cans 2,479 million Steel cans 1,997 million PET bottles 2,679 million Promoting container reuse and recycling *1 BOD (biochemical oxygen demand): an indicator of water pollution *2 CO2 emissions from electricity are calculated using an emission coefficient based on the actual emissions of each electric power company 29 Suntory Group CSR Report 2014 Prioritized Initiatives Initiatives Prioritized ■ Promoting the Use of Renewable Energy Reducing CO2 Emissions throughout We have been increasing the use at our plants of various the Value Chain kinds of clean, renewable energy, including the use of solar We have set challenges for each division to reduce power, micro-hydro power, snow ice, and biomass. 1 CO2 emissions throughout the value chain related to our The Minami Alps Hakushu Water Plant of Suntory domestic operations, from product development and Products Ltd. is installed with the largest photovoltaic manufacture to distribution and sales. We are further panels in the beverages industry*, capable of generating Initiatives Prioritized strengthening activities to meet our targets toward 2020 approximately 490kW of electricity. They provide about 1 of “Reduce CO2 emission in the entire Suntory Group* 20% of the plant’s power on clear days, and make it 2 value chain by 24%* .” In 2013, we reduced the weight possible for us to reduce our CO2 emissions by of our product containers, utilized recycles materials, approximately 205 tons per year compared to when installed heat pump-equipped vending machines, and we buy electricity from a power company. used renewable energy in our manufacturing activities, as In addition, the Haruna Plant of Suntory Products Ltd. 2 well as offset emissions by purchasing CO2 emission rights. and the Kyushu-Kumamoto Brewery of Suntory Beer Ltd. CO2 emissions were, however, reduced by 20% per unit are continuing with their plans to begin operations production relative to 2007 levels. in 2014 of solar roofs and large-scale solar generators, Initiatives Prioritized *1 The group of companies that covers more than 80% of the Suntory Group’s purchased from SOLAR FRONTIER K.K. sales for 2012 (including overseas companies) * As of April 30, 2014, for internal-consumption only *2 Reduction per unit production based on the business areas in 2007 Initiatives in Distribution Initiatives in Manufacturing We are striving to reduce the environmental impact We are committed to energy efficiency at Suntory caused by our distribution and transport operations, from 3 Group plants through production activities harmonized procurement of ingredients and packaging materials to with the environment. Making records of and managing delivery of products to consumers. We are promoting a the operational status centrally is useful for employing modal shift and a shift toward the use of larger vehicles, Initiatives Prioritized energy efficient activities in the production process. and also have introduced the Suntory Integrated Furthermore, we are working to combat global warming Transportation Arrangement® System, a highly efficient from a variety of angles, including by switching to low CO2 truck transport system in place thanks to a computerized emitting fuels and by using renewable energy. Every plant system we developed in-house. It aims to reduce the within Japan has a council of engineers that meets number of trucks in use and the time and distance trucks regularly, and activities are conducted across the board in run when their loads are empty. In addition, by combining 4 all Group companies equally. CO2 emissions totals and loads with those of other companies, we reduce losses in per unit emissions both decreased in 2013 despite transport times. a rise in production at plants in Japan in 2013, thanks Initiatives Prioritized to multifaceted energy-saving measures including CO2 emissions during transportation (business in Japan) reexamination of the conditions under which facilities ■Emissions Per unit were run. (1,000t) (t/1,000kℓ) 240 24 CO2 emissions (at 24 plants in Japan) 22.5 22.3 21.8 21.5 21.2 5 ■Emissions Per unit production 180 18 (1,000t) (kg/kℓ) 400 400 120 104 106 110 12 344 342 91 95 328 331 Initiatives Prioritized 307 300 300 60 6 200 200 0 0 ’07 ’10 ’11 ’12 ’13 105.6 95.4 91.1 90.3 100 82.1 100 6 0 0 ’07 ’10 ’11 ’12 ’13 * Along with a change in the coefficient for CO2 emissions from electricity in Fiscal 2013, there have been changes in the emissions and per unit production in Fiscal 2012 and before. Suntory Group CSR Report 2014 30 We coexist with Nature by committing to “Water Sustainability” and reducing environmental impact. Energy Conservation in Vending Machines Key Features of Suntory Vending Machines We introduce Japan’s top-class energy-efficient* vending machines to promote energy conservation. Heat-pump Function Smart Energy-Saving Feature This allows to recycle the heat generated in Determines sales quantities and temperature the cooling chamber for the heating chamber. of products, reduces power consumption accordingly. Peak-cut feature LED Illumination Cuts cooling for a fixed period of time to help Uses LED lighting for reduced power balance power usage during peak hours, up to consumption. a maximum of 11 hours, in summer. Vacuum Heat Insulation Dimmer Function Improves energy efficiency to prevent loss of Incorporates light dimmer that reduces heating and cooling. brightness by 50%. Zone Heating and Cooling Fluorocarbon measures Reduces power consumption through heating Use of coolants (CO2, R-1234yf) minimizing and cooling products just prior to actual sales. global warming to prevent destruction of the ozone layer. Promoting a 24-hour Lights Out Initiatives to Reuse Vending With indoor vending machines having a 24-hour “Lights Machine Parts Out” rule and outdoor machines having no lighting In order to make use of parts retrieved from retired during daytime hours, the industry is now aiming for vending machines, Suntory has been working to develop 50% of the 2005 power consumption figure by 2020.
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