Case Study - Reporting to Stakeholders
31 May 2012
Our Commitment: We will
report annually to our stakeholders on our progress to demonstrate
how we are meeting our commitments and delivering against our
Transparency supports credibility and encourages dialogue. The
SWA aims to publish an annual report on the industry's progress
towards our goals, allowing stakeholders to assess performance. It
allows us to regularly review the targets
to ensure they are appropriate and relevant, as well as identifying
any need for mitigation measures.
Industry Life Cycle Assessment Project
A detailed Life Cycle Assessment (LCA) of the industry has been
jointly managed by the Scotch Whisky Research Institute and the
Scotch Whisky Association. Detailed information on all aspects of
the industry's environmental performance has been collected to
support effective monitoring.
Data on all activities was captured, from cereals growing, our
use of raw materials, the manufacturing process, to the packaged
product being transported to customers. The LCA has allowed the
industry to identify those parts of the process, for example, that
make the largest contribution to greenhouse gas emissions and water
use, and those areas where action can make the most environmental
The baseline is 2006, on which strategy targets are based. This
data will allow an annual assessment of industry performance, with
the SWA publishing an annual report on the findings. The LCA
demonstrates industry working in a noncompetitive
manner to develop its sustainability programme from which all will
Companies already openly demonstrate to stakeholders a wide
range of information about their environmental performance. This
will continue. Examples include Diageo's annual Corporate
Citizenship report, The Edrington Group's Corporate Social
Responsibility report, and Pernod Ricard's Ethics Report. Enthusing
and informing staff about environmental issues is also important.
This is undertaken across the industry through information boards,
internal company newsletters.
Environmental Management Systems
An Environmental Management System (EMS) is a framework for
managing an organisation's impacts and ensuring compliance with
legislation and other environmental commitments. It also
demonstrates to stakeholders the standards by which operations can
be measured and a commitment to measurable 'continuous
Several SWA members, as well as their suppliers, operate EMS to
the international standard of ISO 14001. Others use their own risk
management systems. All require the collection and analysis of data
to establish trends and performance against KPIs. The industry's
environmental strategy requirements will be incorporated within
Chivas Brothers have an integrated management system covering
environment to ISO 14001, Quality to ISO 9000 and Health and Safety
to OHSAS 18000. The system is independently audited by Lloyds, with
the company's own internal standards sometimes exceeding
international standards. Environment Manager Jeremy Spouge
commented that 'we find standards and auditing valuable in
providing structure and drivers for improvement, and in the formal
recognition of the way we achieve it'.
Over 60 distilleries and packaging plants are part of the
industry Climate Change Agreement or EU Emissions Trading Scheme.
Both require detailed reporting and auditing of energy usage
against reduction targets.
Distillers are also committed to supporting other stakeholders'
work to improve the environment. A good example of this is the
support provided to the RSPB by The Edrington Group in relation to
Black Grouse conservation. For every bottle of Black Grouse Scotch
Whisky sold, 50p is donated by the distiller to RSPB conservation
work to improve habitats at four key Black Grouse reserves in the
UK, including large scale native tree planting and creation of open
woodland. Black Grouse numbers on the reserves have soared by 50%
compared to five years ago.
Stuart Housden, Director of the RSPB in Scotland, said 'Unless
urgent conservation programmes are put in place, this bird and its
remarkable natural behaviour could disappear forever from our
shores. We are absolutely delighted that the Famous Grouse has
chosen to support black grouse conservation by funding our work for
protection, creation and restoration of the special natural
habitats they depend on'.
Gerry O'Donnell, Director of The Famous Grouse said 'It's great
to see the money raised being put to good use at reserves around
the UK, and we look forward to following the progress of the black
grouse conservation work.'
The industry is at the heart of both rural and urban
communities. Active local engagement is essential. Prior to
construction of Scotland's newest distillery at Roseisle on
Speyside, public meetings were arranged to discuss any concerns
about potential environmental impacts. Diageo was able to reassure
local residents that the plant would result in a net reduction of
Local visitor centres increasingly aim to achieve green tourism
certification and to take the opportunity to inform the public
about environmental improvement. Redundant casks were provided to
the Glasgow Wood Recycling Charity in Drumchapel by The Edrington
Group to be transformed into garden furniture.