The Bidvest Group Limited
Annual report 2009

ADDITIONAL SUSTAINABILITY INFORMATION

Bidvest Asia Pacific

Sustainable development at Bidvest Asia Pacific

Bidvest Australia is well advanced with its strategy of establishing Australia’s first truly national foodservice distribution network, offering a complete range of food and food-related products and services.  Bidvest Asia Pacific embraces its customers’ sustainability aspirations and expectations, and works to meet this shifting demand by investing extensively in training and productivity. We acknowledge our responsibilities to the environment by carefully husbanding natural resources and by building responsible environmental stewardship into our partnerships with suppliers.

Click here to view the Bidvest Austrailia sustainability report

Material sustainable development issues

  • food safety and product integrity
  • effects of the economic downturn on consumer spending patterns 
  • water shortages and restrictions in certain locations
  • increasing government regulation to reduce carbon emissions
  • competition for labour, putting pressure on human resource management

Introduction

Bidvest Asia Pacific comprises Bidvest Australia, Bidvest New Zealand, Angliss Singapore and Angliss Hong Kong.  Through Angliss Hong Kong, Bidvest Asia Pacific operates in the developing Chinese market, with distribution centres in Beijing, Shanghai, Shenzen, Guangzhou and Macau.  Bidvest Australia is the largest operation in Bidvest Asia Pacific. In Australia, sustainability and environmental concerns are driven by high customer awareness and growing government legislation, encouraging us to think positively and creatively about our obligations to society. Despite the economic slowdown, our New Zealand operations address sustainability challenges in a positive manner and have embarked on a series of initiatives that will enable the business to grow as a valued corporate citizen. Operations in Singapore and Hong Kong are strongly affected by the economic downturn, but are taking up sustainable business practices as tools to improve cost structures and market offerings.

For Bidvest, sustainability is a total concept. It is the product of deliberate business actions to ensure long-term survival and has three themes – People, Profit and Environment.  Sustainability is integral to our business.

BIDVEST AUSTRALIA
Our sustainability policy

Authorised in April 2008, Bidvest Australia’s sustainability policy recognises the division’s responsibility to the environment and commits all operations to efforts to minimise the carbon footprint while encouraging business partners to do the same.

The company is committed to creating a work culture in which environmental concern is integral to our business operations rather than a series of short-term reactions and initiatives. Our environmental policy is central to the way we do business and affects all relationships in our supply chain.  Our policy emphasises the need to develop appropriate organisational strategies and the importance of understanding how each business unit and employee can make a difference.

For further information on this policy, contact us at sustainability@bidvest.com.au or through our website www.bidvest.com.au

THE ENVIRONMENT
Bidvest Australia’s response to climate change

We have developed an environmental policy that embodies our commitment to a work culture in which environmental concern is integral part to our business operations. All business units have the job of implementing and improving the policy, which is designed to ensure that each of us understands how we can make a difference. Our environmental policy can be accessed via our website http://www.bidvest.com.au.

Employee awareness

Employee involvement in understanding and reducing our environmental impact received substantial impetus through the United Nations Environmental Programme World Environment Day on June 5  2008. Bidvest branches around Australia competed in devising innovative and inspiring ways of reducing carbon emissions and waste. The best were highlighted at the Bidvest sustainability conference in the UK in October 2008.

Sodium vapour lights

At our Brisbane distribution centre, high-voltage lighting has been replaced by sodium vapour lights. Running costs are reduced, lux levels are greatly improved and the lights have an estimated lifespan four times that of previously installed lighting. In addition, lower energy output reduces our carbon footprint.

Electricity and power

QSR Sydney has installed a power factor correction device in their warehouse, reducing electricity use by 5%. Better freezer temperature control systems have reduced electricity usage by a further 10%. Northfork Chemicals, a preferred supplier of BidBranded products, has been awarded a green certificate for using 100% renewable energy sources. 

Water conservation

While the water crisis in south-east Queensland has abated, water scarcity is still a significant issue in the southern areas of Australia. In Sydney, the QSR branch has installed more efficient truck-washing facilities.

Marine stewardship

In partnership with the Marine Stewardship Council (Asia Pacific region) Bidvest Asia Pacific is increasing awareness of sustainable fishing in the region and supplies a range of MSC-certified seafood products.

Fuel usage

Bidvest Australia promotes the use of ethanol-based fuel (E10 – 10% ethanol) and there has been a significant increase in its usage. In the year to the end of June 2009, we increased our use of E10 by 107%, from 54 000 litres to 112 000 litres.

The use of LPG has fallen dramatically over the past three years, from 108 000 litres in 2007 to 30 000 litres in 2008 and 13 000 litres in 2009, a reduction of more than 88%. Despite our continuing expansion, the overall use of fuel has only increased by 1,75% in the two years since 2007.

We are to upgrade our fleet with the latest, most fuel-efficient vehicles. Refrigeration units fitted to the trucks are more efficient and less noisy.

QSR offers customers a rebate if they order larger quantities per delivery, reducing delivery frequency, fuel usage, carbon emissions and costs while increasing efficiency.

Alternative energy usage

We investigated the potential for using alternative energy resources rather than coal-generated electricity.  At this stage, alternative energy is considered unviable as it is virtually twice the cost of coal-derived energy. We will continue to encourage our business units to reduce electricity consumption through the installation of energy-efficient lighting and energy-efficient equipment and by turning off equipment and lighting when not in use. 

   

Case study – Pambula

Our Pambula (NSW) distribution centre has installed an innovative system for reducing energy usage. Waste heat from the centre’s refrigeration plant is collected and stored in a specially designed stainless steel hot water tank with heat exchange tubes running through it. When the water in the tank heats up, hot gases continue through an evaporator to be cooled as normal. This waste heat previously disappeared into the atmosphere. Pambula then uses the hot water to wash down its butcher shop. The effect has been to significantly reduce the amount of gas used.

   

Caterer’s Choice now offers a sustainable choice

Bidvest Australia’s range of own-brand products, Caterer’s Choice, has entered the sustainable products market.  For some time, Caterer’s Choice has offered a range of chemicals that are biodegradable and offer sustainability advantages.  As the next stage in the development of the sustainable products range, we are offering biodegradable garbage bags. We plan to roll-out an extended range of sustainable products in coming months.

Recycling

Despite the challenging economic environment and a dramatic fall in demand for recycled materials, Bidvest Australia has implemented a national recycling programme that will be rolled out to all business units as existing contracts expire.  While implementation is still at an early stage, reports indicate substantial cost savings as well as environmental benefits.

Information technology

Over the last 12-18 months, our IT department has undertaken a number of projects to lower the impact on the environment of Bidvest’s computing systems. Our server virtualisation project has resulted in an annual energy saving of approximately 132 000kWh, equivalent to taking 30 cars off the road or planting 400 trees. The project continues. Other initiatives include implementation of a more efficient production hosting facility, the introduction of more energy-efficient thin client devices, upgraded printers and an electronic payroll system (FindMeFast) that reduces manual interrogation.

The logistics division operates on the new warehouse management system that is currently being developed by Bidvest Australia.  When implemented throughout all our businesses, the system will drastically reduce paperwork, foster the traceability of product, improve efficiency, give greater control of shelf life, enhance batch control and lead to reductions in damaged or lost products.

Forthcoming carbon trading scheme

The Australian government has signalled its intention to institute carbon trading in 2010 as part of its carbon pollution reduction scheme. Bidvest’s many proactive carbon-oriented sustainability initiatives will equip the company to meet this challenge. A prepared carbon-conscious mindset will bestow an ingrained competitive advantage.

SOCIAL SUSTAINABILITY
Our community and corporate citizenship

We commit to actively participating in and improving the communities in which we operate. At Corporate level, Bidvest Australia is a substantial contributor to the broader Australian community and charitable organisations. However, we do not believe this is the responsibility of Corporate alone. Every business unit is a member of its local community and is expected to play a role and be a good corporate citizen.

Responding to drought, fires and flooding

We in Australia have recently experienced a succession of natural catastrophes.  Severe droughts were followed by horrendous bushfires in Victoria in which over 300 people lost their lives while in Queensland and northern New South Wales torrential rain and massive flooding caused significant damage.

Bidvest Australia operates in all affected areas and unfortunately some of our staff members were personally affected by these disasters. Bidvest Australia and our people raised significant sums for the relief effort, both for affected staff members, as well as for the wide communities. We matched dollar for dollar all money donated by staff and contractors, and donated products and services.