Resource Efficiency and Greenhouse Gas (GHG) emissions: ECCBC’s ESG/Sustainability Impact Strategy 2030 includes pillars which include objectives and targets on efficiency, namely:
(a) Climate: TCCC has set a target to reduce its total GHG emissions by 25% by 2030?regardless of volume growth. ECCBC has therefore included improving the energy efficiency of all its operations as well as reducing the carbon footprint of the transport fleet (by looking at electric options based on feasibility). ECCBC has been working on reducing the energy use ratio (EUR) of its products. Both Morocco and Algeria plants have conducted energy audits in 2021 and improvement measures are being implemented. Also, the company is looking at installing solar panels, as discussed below.
ECCBC is also working, with an external partner, on an assessment of baseline GHG emissions (2022) and projections for 2030 for its entire supply chain (Scope 1 to 3), which will help the company identify areas of improvements.
(b) Packaging: Among other objectives, it includes objectives of reducing the overall packaging use and use of recycled packaging. This is discussed further below.
(c) Water: It includes objectives of reuse of wastewater and improving water use efficiency, discussed below in detail.
In line with the above objectives, the proposed CAPEX for this project includes various resource efficiency measures as described below:
(a) Upgrade of production line in Fruital plant: The new line will (i) facilitate a 25% reduction in electricity consumption to produce replaced volume which translates to 558 MWh annually; (ii) facilitate a reduction in the utilization of raw materials as the new line will help in plastic bottle light-weighting with estimated saving of 118 tons in plastic usage annually to produce replaced volume from existing line.
(b) Packaged Drinking Water Line in COBOMI plant in Morocco: The new line will significantly improve water consumption and enable a reduction in plastic utilization compared to the existing line. The amount of saved plastic annually is expected to be 88 tons to produce the volumes transferred from the existing line to the new line.
(c) Upgradation of coolers in Ghana, Algeria and other West African countries: The new coolers will be about 25% more energy efficient. The expected amount of energy efficiency gained based on the number of coolers to be replaced is 1,368,750 kwh per year.
(d) Installation of solar panels in Ghana and Morocco plants: The installation of solar panels in Morocco and Ghana is expected to result in generation of about 4500 MWh/year and 1560 MWh/year, respectively.
(e) Pilot installation of off-grid solar coolers in Ghana: The off-grid coolers in Ghana will result in generation of 123 MWh of renewable energy produced.
The above measures are expected to result in avoidance of estimated 6,800 tons of Carbon Dioxide (CO2) equivalent GHG emissions annually. This is considering the grid factor of the countries and a baseline of 6kg of CO2 per kg of plastic use.
Water Management: Under the ESG/Sustainability Impact Strategy – Water Pillar, ECCBC has a goal of being responsible for the use and management of water inside its business and in helping communities to access water resources. The company has committed to improve its water efficiency by 20% and 100% of replenishment of water used in their beverages by 2030. To achieve these objectives, ECCBC monitors its Water Use Ratio (i.e., liters of water used/liters of products produced). All plants must conduct self-assessments through a water efficiency maturity tool and areas of improvements are identified. All plants also conduct a source vulnerability assessment (SVA) through external consultants every five years to assess sustainability of the sources of water and prepare a plant-level water management plan (WMP). The results of WUR, water efficiency assessments and implementation of the WMP are reviewed in the monthly sustainability performance reviews. The status of water management at the COBOMI and Fruital plants and changes in water management due to the project is described below:
- COBOMI: The main source of water supply for the plant are on-site borewells closely followed by municipal supply. The plant has the required permissions in place for both water supply sources from respective agencies. The water is tested on a regular basis for a detailed list of parameters as per TCCC quality standards. Through implementation of water efficiency measures over the years, the WUR of 1.26 has been achieved for the plant. Based on available public information, TCCC’s overall WUR was 1.84 (in 2020), therefore, COBOMI’s WUR is significantly better than the global WUR. ECCBC’s target is to achieve WUR of 1.20 by 2030.
The current consumption, additional water consumption for the new packaged drinking water line as well as available assessments on water (SVA, water efficiency related reports) have been reviewed for the plant as part of the appraisal. As per the SVA results and other information available, it can be concluded that relative water consumption at the plant is small compared to overall water usage from the aquifer and municipal water supply. However, the aquifer and municipal supply are over-exploited. These risks may be further exacerbated by climate change risks. Therefore, as understood based on public information, the government authorities in Morocco have a plan for the designing, financing, building and operating of a desalination plant for Casablanca region under a public private partnership (PPP) model for a period of 30 years and with a capacity of 200 million m3/year by mid-2026 and in the second phase 300 million m3/year by 2030. The pre-qualification process for the plant has been initiated in March 2022. This would support the water availability for municipal/industrial supply from LYDEC.
Considering the above, as per ESAP#3, ECCBC will work with relevant stakeholders and agencies to ensure water availability for the plant and communities going forward. Also, the new line will only rely on municipal supply.
- Fruital: The source of water supply are the on-site borewells. The water is tested on a regular basis for a detailed list of parameters as per TCCC quality standards. Through implementation of water efficiency measures over the years, the WUR of 1.61 has been achieved for the plant, which is better than TCCC’s overall WUR of 1.84 (in 2020). ECCBC is working to improve the WUR of the plant to achieve a target of 1.20 by 2030.
Similar to COBOMI, the current consumption, additional water consumption for the new packaged drinking water line as well as available assessments on water (SVA, water efficiency related reports) have been reviewed for the plant as part of the appraisal. The aquifer is over-exploited. Considering the above, as per ESAP#4, ECCBC will work with relevant stakeholders and agencies to ensure water availability for the communities and for the plant going forward. The plant will not increase groundwater withdrawal any further even after the expansion and make operations more efficient.
As discussed above, ECCBC has a goal of helping communities access and better manage their water resources and 100% of replenishment of water used in their beverages. As per ESAP#5, ECCBC will implement community water access projects to offset the additional water consumption from the project. These projects will target communities around the COBOMI and Fruital plants.
Waste Management: The major streams of waste generated at ECCBC plants include recyclable waste - paper, aluminium, PET, metal, plastics, glass and wood (from pallets). The other waste streams include used oil, batteries, biomedical waste (from the clinic), used PPE and mixed (unrecyclable) waste. The plants have prepared a waste management plan which describes how each of these waste streams are handled, segregated and disposed of. Both plants have written agreement with service providers/agencies to recycle the recyclable wastes. The other waste streams are disposed of through incineration by authorized agencies. ECCBC plants have a target of ensuring that 95% of waste is recycled by 2030.
TCCC has, launched its World Without Waste (WWW) sustainable packaging initiative in 2018. The main goals of this initiative, which has been adopted by ECCBC under its ESG Impact Strategy, are the collection and recycling of bottle or can for each one sold by 2030 and using at least 50% recycled material in the packaging (e.g., cans and PET bottles). To achieve these goals, ECCBC has initiated a pilot project in Morocco on Switch to Circular Economy. This project is part of United Nations Industrial Development Organization (UNIDO)’s Switch program (https://www.switchtocircular.eu/node/22), funded by the European Union and Finland, which will support European multinational corporations led pilot projects in the Plastic Packaging value chain. ECCBC’s pilot project is managed by an external agency and the company has other partners, including a recycling company, pre-form manufacturers, partners for waste collection and formalization of waste pickers. The pilot project will be implemented over three years and will include following key activities:
- Facilitate and scale PET collection in households and in ECCBC point of sales;
- Develop traceability and quality control system;
- Develop bottle to bottle technical and business case;
- Develop bottle-to-bottle independent circular practices;
- Enable private-public dialogue on recycled PET (rPET) packaging legislation; and
- Conduct pilot monitoring and partner coordination.
The pilot aims to collect and recycle 4000 to 6000 tons of PET waste and also, subject to legislation, incorporate rPET preforms in preform supplier production. ECCBC aims to support the transition of lessons learned to additional markets (e.g., Algeria, Ghana) and present reports on business, technical, and impact case at the end of the three-year pilot.
For Algeria, ECCBC is currently:
- Collaborating with the Algerian Ministries of Professional Training and Environment to encourage PET recycling in Algeria;
- Rewarding best end of recycling program studies;
- Supporting the creation of PET recycling start-up;
- Creation of PET ecosystem in Oran in collaboration with industry, local recycling company by furnishing hundreds of bins in 2022 before the expansion of the project in 2023 by recruiting of informal collectors into the formal sector; and
- Beach cleaning and plastic waste collection activities.
As per ESAP#6, ECCBC will also develop a program (similar to Switch program for Morocco) for Algeria. The details of the program including implementation timelines will be shared with IFC. Progress on the program will be reported as part of the annual monitoring reports.
Hazardous Materials Management: Limited hazardous materials are used in ECCBC plants which mainly include fuel (for back-up generators), lubricants, ammonia gas (in refrigeration) and chemicals in water treatment (sodium hydroxide, chlorine). Suitable PPE are used by the employees in handling of these chemicals and training on PPE usage is provided regularly. Also, eye shower is provided outside the water treatment area. Emergency response drills for spill response are conducted.
Pollution Prevention: The main power supply is through the grid. The plants have diesel generator (DG) sets for power back-up but only for lighting and not for production. The other sources of emissions are the gas boilers. As discussed in PS1 above, currently, no ambient noise, ambient air quality and stack emissions monitoring is conducted at the plants. As part of ESAP#1(a), ECCBC will include regular ambient noise, ambient air quality and stack emissions monitoring (for boilers) in its monitoring procedures. Regular monitoring will be conducted for the defined parameters as defined in WBG EHS Guidelines and corrective actions taken, as necessary, based on the measurement results.
The wastewater in the COBOMI plant is treated in the common wastewater treatment plant (WWTP) of the Technopole industrial area, which has secondary treatment. Regarding Fruital, the wastewater is treated in the common WWTP for the Fruital and neighbouring Heineken plant, which has secondary treatment. Part of the treated wastewater is reused in ancillary uses of the plant.