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To Read Our Inaugural Sustainability Report

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To Read Our Inaugural Sustainability Report Growing for Good Our sustainability progress 2020 CONTENTS INTRODUCTION Introduction 3 We are Our 2030 goals 7 Frucor Suntory How we’re doing 8 Since our beginnings in the early Sugar 10 1960s as part of the New Zealand Apple & Pear Board, Frucor Suntory has Packaging 13 evolved from a small local juice business to a significant trans-Tasman beverages company. Waste 18 Frucor Suntory manufactures, markets We employ 1,000 people across Australia Emissions 20 and distributes a range of fruit juices, and New Zealand and since 2009, we’ve fruit drinks, energy drinks, waters and soft been wholly owned by leading Japanese Water 22 drinks. We’re the company behind iconic beverage and food company, Suntory Group. brands V, h2go, Just Juice, Maximus, We’re passionate about satisfying Fresh Up and Simply Squeezed – and tomorrow’s thirst and offering more choice we produce more than 25 million cases when it comes to choosing a beverage of drinks a year at our South Auckland to suit people’s lifestyle. Alongside our manufacturing plant. parent company Suntory, we believe it is our social responsibility to have a positive impact on the world around us. We produce 200 million litres of product annually We sell 25 million cases of product per year We have offices across New Zealand Over 550,000 deliveries and Australia and two per year across Australia manufacturing sites – and New Zealand in Auckland and Napier 2 Growing For Good 2020 Frucor Suntory Growing For Good 2020 Frucor Suntory 3 INTRODUCTION INTRODUCTION From the Chief From the Head Executive Officer of Sustainability At Frucor Suntory, we’re Hungry to Make Drinks Better – and Welcome to Frucor Suntory’s inaugural annual sustainability part of this hunger is our commitment to help lead positive report. I’m delighted to be able to showcase our progress change in the New Zealand and Australian beverage market. against our goals – and to introduce some of the people who helped make it happen. As part of the Suntory Group, Growing for This report details the progress we have Good is all about growing our business made over the last year against these In many respects, 2020 was a year of We made great progress this year across while protecting our environment and Sustainability Commitments – and the surprises as we adjusted to the new almost all areas of our sustainability agenda playing our part in the community. challenges we continue to face. “normal” of an international health and implemented a number of projects We believe it’s our social responsibility to Our commitments drive us to improve and pandemic. We faced many challenges – that are delivering encouraging results. have a positive impact on the world around to deliver better outcomes for our team, and I am proud to be part of an Our largest production site is based in us, and we want to make sustainability an our customers, consumers and the planet, organisation who puts the safety and Auckland, which also faced drought – and easier choice for consumers. and they force us to acknowledge there are wellbeing of their people first. I’m hugely proud of our Engineering and areas where change is harder to achieve. We’ve made a commitment to achieve We increased our focus on sustainability Manufacturing teams who worked hard these five key goals by 2030: As we head into 2021, our work won’t stop. in 2017, and set some ambitious goals. to install and commission new equipment We have a clear plan and an unrelenting Reducing our environmental impact was that’s delivering a 12 million litre per . Zero waste to landfill across our sites hunger to make meaningful change and a prioritised and formed part of our long term annum water saving. All packaging to be recyclable positive contribution to the world in which 2030 vision. The work we’re doing isn’t easy, Packaging changes are complex and we live. nor is it quick to implement – and we need . Reducing CO2 emissions by 35% require collaboration and commitment to ensure we recognise the journey and from our teams to rethink the way we do . Reducing water usage by 20% Darren Fullerton mindset required to change. In many cases, things. And we have done both. 93% of our Chief Executive Officer there are interdependencies across teams . One of every three drinks we sell to be packaging portfolio is now recyclable. low or no-sugar and it will take time. However, we know the work we’re doing is important to our Backed by our Executive Leadership And we are making changes that make customers, our consumers, our people – Team, our cross-functional Sustainability a difference. and the environment we live in. Working Group is responsible for leading change, supporting action and tracking results. Looking ahead to 2021, we have a comprehensive calendar of activities building on the work completed this year – specifically a continued focus on developing opportunities and solutions to the issues of packaging and climate change. This involves a shift towards a circular economy, and ongoing efforts to decarbonise our operations. Ben Walkley Head of Sustainability 4 Growing For Good 2020 Frucor Suntory Growing For Good 2020 Frucor Suntory 5 INTRODUCTION The Suntory Group has a mission Our 2030 goals To create harmony with people and nature In line with our parent company Suntory, we’ve set ourselves ambitious targets to ensure our environment is fit for the future. We are actively working towards achieving these five goals by 2030. Within the context of the United Nations’ Sustainable Development Goals (SDGs) adopted in 2015, the Suntory Group established its Sustainability Vision with seven Waste sustainability themes. Zero waste to landfill In addition to conserving water resources, Suntory established a Plastic Policy in reducing CO2 emissions, promoting 2019 with a goal of 100% sustainability by a circular economy for plastics and switching the materials for all of PET bottles Packaging respecting human rights in the supply used in its global operations to recycled chain, Suntory will further accelerate efforts materials or plant-derived materials by 100% recyclable packaging that contribute to the people leading 2030 in order to contribute to a recycling- spiritually rich and healthy lives. oriented and carbon-free society. The Suntory Group will continue to take on Emissions Suntory’s sustainability vision is unique challenges to innovate and build a richer society as a multifaceted beverage Reduce CO2 emissions by 35% “Growing for Good.” and liquor company growing globally while listening to the voices of customers and The promotion of water sustainability other stakeholders. on a global scale continues to be key to Water Suntory’s sustainability efforts. Water is a Reduce water usage by 20% precious resource that supports people’s lives and livelihood and is also the source of the Suntory Group’s corporate activities. In addition to water sustainability Sugar initiatives, the Group will also strengthen One in three drinks we sell will be low or no sugar its efforts to tackle climate change – including its goal to deliver net zero gas emissions by 2050, by promoting energy conservation activities, proactively introducing renewable energy, utilising next-generation infrastructure, and Delivering on our commitments to sustainability collaborating with stakeholders in the relies on taking action in every part of the business. value chain. 6 Growing For Good 2020 Frucor Suntory Growing For Good 2020 Frucor Suntory 7 How we’re doing* Water 2020 highlights Focus areas for 2021 – 2023 . Investigate further cleaning process Air rinser installed on New processes created PROGRESS: one of the canning lines changes to optimise water use 14% reduction to reroute water . Install additional air rinser saving 12 million litres in water use reusing rather . Reuse options investigated for of water annually than wasting process heating or cooling Sugar . Launched a new Lower sugar through innovation, PROGRESS: Launched low / no sugar products leveraging Suntory Group relationship One in five of our marketing campaign . Introduce greater choice through drinks sold are low, including V Sugarfree Blue, NZ Natural flavoured water highlighting Pepsi Max as new products or contain no sugar in cans, Gatorade No Sugar a no sugar beverage . Continue to introduce smaller pack sizes Emissions Created a co-shipping Introduction of . Continue fridge upgrades arrangement with PROGRESS: lower emission fridges . Expand co-shipping program partners to 8% reduction to key customers . Partner with suppliers to reduce in emissions maximise capacity emissions from the raw material Top 10 carbon reducer supply chain utilised on all freight recognition by Toitu- Waste Diverted . Continue to find alternatives to PROGRESS: Audited waste divert waste from landfill 90% of our waste collection points to 99 tonnes identify potential . is recycled across Encourage suppliers to consider of waste from landfill the business sustainable packaging when recycling opportunities (2019 & 2020) delivering raw materials Packaging Transition 11 SKUs . Understand our non-recyclable PROGRESS: APCO accreditation to recycled plastic packaging and source alternatives 93% of our (PET) resulting in . Continue to grow rPET3 packaging packaging is Seven PET1 SKUs . recyclable 270 tonnes Understand consumer insights and lightweighted2 drivers around packaging to incorporate of virgin PET used in brand / product processes . Continuation of lightweighting packaging programme including glass, PET and aluminium 8 Growing For Good 2020 Frucor Suntory *Against 2017 baseline. 1. PET – polyethylene terephthalate. 2. Lightweighting – reduce the weight of the packaging through removal of raw material used. 3. rPET – recycled polyethylene terephthalate. 9 SUGAR SUGAR . Pepsi Minis – our smaller serve size Progress on sugar cans are proving popular, and our focus How we’re on advertising Pepsi Max is working. We’re doing our bit to encourage healthy lifestyles It’s growing faster than full sugar Pepsi making a and reduce the sugar consumed in our beverages.
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