QHSE - Quality, Health, Safety and Environment 2016
Consumer safety and employee well-being are key elements for Gruppo Campari. In its operations the Group has always invested in the quality of its products, the health and safety of its workers and in safeguarding the environment.
SCOPE AND METHODOLOGY
Every year QHSE assumes an even greater strategic importance in Gruppo Campari’s operations. As the Group increases in size and complexity, it becomes even more necessary to guarantee safe products that meet consumer expectations, provide a safe and secure workplace and create a responsible and sustainable relationship with the world around us.
Adopting the operating platform, Enablon - which is far from being merely an IT tool - enables us to gather and analyse an extended range of data and indicators for evaluation purposes, although it is mainly used for planning and is the starting point for processes aimed at continually improving QHSE management. The analysis of this data will form the basis for studies on optimising environmental performance over the next few years, regarding, in particular, the effects on climate change and programmes for improving accident prevention.
QHSE data and indicators also refer to GRI4 guidelines, but do not include information relating to the SPML French facilities and the Italian wineries, as previously emphasised in the ‘Note on methodology’ section, and also exclude some of the operations of the Canadian production facility in Grimsby. The reporting process for some of the indicators includes the co-packers. In 2016 environmental performance was impacted in part by specific industrial operating conditions. Among these was the suspension of the production of sugar as a result of an injunction by the judicial authorities, which substantially reduced the Group’s consolidated energy consumption.
Tools & Systems
Processes that foster an awareness of a common culture moored in the strategic areas of quality, health, safety and environment have been embedded within the organisation for years.
By mainly leveraging its internal professionalism and competencies, more than 22,800 hours were dedicated and involved large swaths of the corporate population in numerous training initiatives that resulted in an impressive 9.75 hours of training on average for Camparistas included in the reporting scope.
Of these hours, some 60% were dedicated to health and safety training.
The triple certification process in line with ISO 22000 (food safety), OHSAS 18001 (occupational health and safety standards) and ISO 14001 (environment) voluntary standards, also continued on schedule in 2016.
It should be noted that some of the new objectives that have been met are FSSC 22000 certification for the Lawrenceburg facility, BRC version 7 certification for the Novi Ligure and Derrimut facilities and the transition to the ISO 14001:2015 version for the facilities in Sorocaba and Suape.
Since 2016, the percentage of bottles produced in certified sites has included production at co-packers as well, proof of our growing attention to the strategic topics of quality, health, safety and environment - even when they are managed externally.
The Group’s production structures were subjected to a number of audits by both internal and external parties within the scope of QHSE, up approximately 59% in 2016. Among other things, the global verification plan for compliance with environmental standards was developed in partnership with Lloyd’s Register Quality Assurance. It was launched in Jamaica in October and will cover all the Group’s facilities in two years.
Enablon - sustainability management platform
The collection, verification and consolidation process for data and performance indicators for the areas of quality, health, safety and environment was automated from 2016 thanks to the implementation of the performance management module of the Enablon platform.
Up to 1,550 indicators per site are collected and verified every quarter by 80 international users via the completion of electronic questionnaires. The system generates automatic email notifications that ask users to collect and verify the indicators which apply to them by the deadline set at the start of the data gathering campaign, which lasts a total of three weeks. The process includes two levels of verification: the first is local, the second is regional. A further control of consolidated data at the global level is carried out at the end of the campaign by Global QHSE by consulting the reports and the trend analysis generated by the system.
Moreover, specific targets and objectives can be customised for each indicator, making it possible to control their attainment and to draw up preventive and corrective action plans. The system is currently active at 40 sites.
Product quality is measured by tracking the number of customer complaints and the product defect rate by determining in ppm (parts per million) the ratio of defective bottles to the total number of bottles produced annually. 2016 saw a decline in the number of market complaints accompanied by an increase in the figures in ppm, which was also due to the inclusion of reports related to production by co-packers.
However, of the 534 reports, only 17 involved critical defects. In the last quarter, the effects of Operation Goldstar, characterised by the activation of additional controls for packaging materials, in-line production and finished products brought about a significant reduction in defects in ppm related to internal production (from 67 ppm in the first nine months of the year to 7 ppm in the last quarter).
The company’s exceptional attention to quality in 2016 led to the rigorous application of the precautionary principle in the form of a voluntary recall of certain batches of Averna sold in some European countries including Germany, Italy, Austria, Switzerland and Belgium, due to a possible crack in the pourer.
In order to mitigate the risks related to product defects, additional activities were introduced across three levels in order to reinforce existing quality control levels in every facility. These apply to packaging materials (empty bottles and closures), in-line and finished products, and cover key and strategic brands (Aperol, Appleton, Campari, SKYY, Wild Turkey and Averna, Camparisoda and Crodino).
The methodology is based on statistical sampling established by Military Standards, internationally recognised as one of the most effective statistical approaches to evaluating quality.
The expected medium-term results are attributable to a global alignment with quality assurance policies, improvements in RCA (Root Cause Analysis) and CAPA (Corrective Action, Preventive Action) management processes, greater focus on the importance of investment, training and greater awareness regarding quality and individual responsibility, all of which combined result in a tangible mitigation of quality risks.
Health & Safety
We were highly focused on preventing injuries in 2016. Specific local initiatives aimed at boosting awareness through information and training (including visual aids) significantly reduced the number of accidents, which fell 13% in absolute terms with respect to the previous year.
However, the number of days lost and the injury frequency and severity rates remained constant, as did the main causes – stumbling, slipping and running into fixed objects. In the US, a contractor was carrying out construction work at height and fell owing to the inadequate use of protective equipment, but fortunately escaped serious injury.
Prevention programmes will continue at local level in 2017. They will be rounded out by global training aimed at changing behaviour, with a particular focus on risks connected with working at height and in confined spaces and are designed to reach a high number of employees in the company. Unfortunately there was a fatality in Jamaica in which a security guard in New Yarmouth suffered an external armed attack, with tragic consequences.
Following this traumatic event, further structural and organisational measures were put in place to improve the safety of security guards. Finally, as in previous years, there were no occupational illnesses.
As in previous years, the number of near-miss accidents recorded rose, proving the effectiveness of training sessions and indicating an ever-increasing awareness within the company with regard to health, safety and environment.
Many local improvement projects include the objective of reducing accidents. Among these is the interesting initiative put in place at Capilla del Señor, Argentina. After the:
- implementation of a 5S programme for optimising labour standards and operating performance;
- weekly meetings on safety;
- weekly discussions on safety;
- safety training programmes; a plan to change behaviour was launched which reduced the number of accidents from 15 in 2015 to 3 in 2016.
In 2016, calculation methods were harmonised for converting the amount of combustible raw materials consumed into energy available to the company. Specific industrial operating conditions led to total consumption of more than 1,341,000 GJ (gigajoules) in 2016, which is considerably lower than the previous year, alongside a clear reduction in the amount of renewable energy produced.
Under this condition, it is possible to calculate an average value of 1.82 MJ (megajoules) consumed for every bottle produced. In 2016, in-house energy production mainly came from photovoltaic installations, generating 2,495 GJ, which was fully consumed by the company.
Special emphasis was placed on the integrated management of water resources drawn from and returned to the environment in 2016.
The main supply source is underground water and fresh surface water, which, together with other sources, supplied more than 14,200,000 m3. The redefinition of the reporting scope combined with the optimised use of the resource reduced the amount of water withdrawn per bottle by about 11%. This amount includes all direct and indirect consumption related to the company’s manufacturing operations.
The industrial operational processes which typified 2016 are also reflected in the significant reduction in effluents, the majority of which were returned to receiving bodies of surface water for a total of more than 2.5 million m3.
Our commitment to managing this environmental aspect is shown by the fact that the number of analyses performed on effluents rose more than 20%.
The approximately 28,150 tonnes of waste generated by the company’s production activities consist almost exclusively of non-hazardous materials, which are recycled and reclaimed with increasing attention. This is shown, for example, by the creation of a collection and separation plant for solid waste at the Kingston, Jamaica facility.
Despite the greater attention paid to managing all the various environmental aspects, 19 accidental spills were recorded.
All of these were minor events that could be immediately identified and resolved using measures to remove the cause and reverse the damage.
Dunder treatment plant at Appleton Estate, Jamaica
Dunder is the liquid left over from distilling a batch of rum. In the traditional method of distilling Jamaican rum, the unused dunder, which is rich in natural nutrients, can be used as fertilizer.
In order to ensure compliance with National Environmental Planning Agency (NEPA) requirements and to guarantee sustainable operations over the entire year, a dunder treatment plant was planned, constructed and put into operation at the distillery in Appleton between September 2015 and December 2016.
With an investment of € 5.5 million and the installation of a membrane bio-reactor to further treat the permeate, the system is now able to reuse as process water or return effluent with a COD well below the limit set by the law (100mg/L) to the environment.
Closed-loop system at the Appleton Estate, Jamaica sugar factory
The sugar factory at Appleton Estate is situated in a rural area through which the Black River runs.
To eliminate all industrial waste created by production operations, some € 1.2 million was invested between February 2016 and December 2016 to install a series of 10 sedimentation ponds which form two distinct water treatment systems.
Wastewater treatment at the ageing, blending and bottling plants at Jwn in Jamaica
Ageing, blending and bottling at JWN are concentrated at the Spanish Town Road location, which includes the north, south and east facilities.
Between January 2015 and December 2016, some € 5 million was invested to set up and put into operation collection systems and a treatment plant for local and industrial wastewater, thus ensuring greater efficiency and control over all effluents produced.