Year-to-year comparison for energy and water consumption within the wine industry is diffi cult as this can be heavily infl uenced by a number of highly variable external factors and regionally specifi c vintage conditions. Rainfall, fl ooding and temperature variations can impact water consumption in irrigated areas, energy consumed for frost protection and heating and cooling loads in production facilities.
The last 12 months have also seen signifi cant improvements to our Group-wide reporting processes. Energy and water consumption and carbon emissions and waste generated are now reported from our global production facilities and vineyards in full. Our US vineyards have made signifi cant improvements to their waste reporting practices in FY12, which have driven the reported increase in total waste generated. On a like-for-like basis, excluding the impact of the US vineyards, the Group’s total waste generated increased by 1.5% in FY12, which is within annual tolerances, and improved recycling rates by 2.4%.
Increases in our reported FY12 water consumption are primarily driven by our Australian operations, with the 2012 vintage necessitating a greater use of water compared with 2011, which had signifi cantly higher levels of rainfall. Energy consumption was similarly driven by seasonal variations observed in the US and Australia.
METRIC UNIT OF MEASURE FY12 FY11
Environment 1
Energy Effi ciency MJ/9LE 2 13.56 13.32
Water Effi ciency L/9LE 2 38.80 35.42
Total energy consumed 3 GJ 525,441 490,9264
Total water consumed 5 ML 17,124 15,482
Total CO2-e emissions 6 Tonnes CO2-e 65,949 62,347
Total solid waste generated 5 Tonnes 63,939 51,535
Solid waste to recycling 5 % 95.39 93.39
Social
RCIFR 7 RCI/million hours worked 12.2 17.6 8
Women in the workforce % 38.2 37.0
HEALTH, SAFETY AND ENVIRONMENT (HSE)
The health, safety and environment (HSE) program, covering our direct operations, continued to evolve and produce strong results in FY12, with our Recordable Case Injury Frequency Rate reducing from 16.9 to 12.2 (as at 30 June 2012). This represents a 28% reduction on the preceding year and refl ects our strong focus on programs that address high risk hazards within our industry.
Our HSE program is supported by a comprehensive audit process that covers our global operations. Our focus on incident investigation and training ensures that we continually improve our systems and behaviours. Reports highlighting audit results, incidents, trends and other relevant information are shared with senior management, the OH&S Council and the Board on a monthly basis to ensure transparency and oversight on our HSE practices. In FY12, we commenced a review of our HSE program and will be introducing enhancements to the program during FY13 to ensure that we remain a leader in wine industry health, safety and environment risk management.
1. Due to timing requirements of reporting, a small portion of our June 2012 environmental performance data for energy, water, waste and carbon emissions has been estimated.
2. Energy and water effi ciency is expressed on a 9 litre equivalent per unit case produced basis and includes the energy and water consumed in our wineries and packaging centres.
3. Includes all wineries, packaging centres and company-owned vineyards. Does not include energy consumed from offi ces, cellar doors or tool of trade fl eet.
4. Our FY11 energy consumption and total carbon emissions have been restated due to an error uncovered in our reporting database that produced an incorrect unit conversion.
5. Includes all wineries, packaging centres and company-owned vineyards. Does not include water consumed and waste generated from offi ces or cellar doors.
6. Includes all wineries, packaging centres and company-owned vineyards. Does not include emissions from offi ces, cellar doors or tool of trade fl eet, wastewater treatment plants, refrigerants, Scope 3 emissions.
7. Reportable Case Injury Frequency Rate.
8. This has been restated from our FY11 report due to a reporting error.
FY13 OBJECTIVES AND TARGETS
In accordance with our CSR strategy and four strategic priorities, we have developed the following FY13 objectives and targets shown below. A comprehensive business-wide CSR Scorecard will also be introduced in FY13 to illustrate progress against these objectives.
OBJECTIVE FY13 TARGET BASELINE
Sustainability
Third party sustainable certifi cation for company owned vineyards and wineries in ANZ and USA
100% 1 by 30 June 2013 Certifi cation received for
100% vineyards in Australia, New Zealand and USA, 91% Australia and New Zealand wineries, 100% USA wineries Ongoing improvements
in resource effi ciency Regions to continue with resource effi ciency programs: USA – targeting 30% water and energy effi ciency improvement by 30 June 2014 against the 1 July 2011 baseline
USA – water and energy consumption as at 1 July 2011 ANZ – focused on implementation of
resource effi ciency projects to improve effi ciency against 1 July 2012 baseline
ANZ – water and energy consumption as at 1 July 2012 Implementation of Responsible
Procurement Code and process, focusing on environmental practices of suppliers
Adoption of Responsible Procurement Code
and processes across key suppliers globally N/A – new process Assess the environmental impact
of our packaging Implementation of global assessment process across current and new product development Assessments conducted against existing Australian packaging
Responsibility
Enhance positive OH&S culture Achieve RCIFR of 10 2 October 2008
Support our Vintrepreneurs as agents
of change in their communities Deliver $1M value to our communities globally12% volunteering participation rate N/A – new process Implementation of Responsible
Procurement Code and process, focusing on the social practices of our suppliers
Adoption of Responsible Procurement Code
and processes across key suppliers globally N/A – new process Promote the responsible
consumption of alcohol Drive awareness and education on responsible consumption with internal and external audiences
N/A – new process
Deliver and embed Socially Responsible Marketing Guidelines within our internal processes
Governance
Diversity Council Diversity Council to prioritise and drive
progress against nominated objectives Council formed FY12 Undertake external CSR
stakeholder engagement survey 100 stakeholders globally surveyed on TWE’s CSR strategy and objectives N/A – new process Develop CSR Lead Indicator Tool based
on Global Reporting Initiative (GRI) metrics and undertake benchmarking exercise
Achieve GRI C level rating N/A – new process
Commercial
Implement project evaluation tool measuring improvements across safety, innovation, community and environment in addition to fi nancial return
Evaluate benefi ts of relevant
capital projects N/A – new process
Improve investor environment social
governance (ESG) communications 5% improvement in FTSE4GOOD ratingImproved score on Carbon FTSE4GOOD FY11 Score 68% Disclosure Project (CDP) submission 2012 CDP report submitted
1. Wineries within the scope of the target are those producing more than 5,000 gallons/18,927 litres of wine per year.