Sustainability Development Report

Introduction

At Cathay Pacific Catering Services (H.K.) Ltd. (CPCS) we are strongly committed to minimising the environmental impact and protecting the health and safety of all our stakeholders. In 2009 & 2010, CPCS launched the Organisation Development project to enhance organizational effectiveness and leadership development. We redefined our Vision, Mission and Values (VMV) to guide management practices and behaviour with the emphasis on safety, people, environmental and corporate social responsibility.

The deployment of the VMV is via multi-channels; including management briefings, staff alignment surveys and promotional activities to ensure staff at all levels are engaged and buy into the CPCS caring, respectful and ethical culture.

In this report, we would like share our 2010 sustainable development achievements and objectives and plans for 2011.

Key facts about CPCS

  • CPCS is a 100% subsidiary of Cathay Pacific Airways and one of the largest flight kitchens in the world.
  • Total Floor Area - 50,400 sq.m.
  • Serving over 36 airlines
  • Daily Production Capacity: 80,000 meals
  • No. of employees: 1620

 

Vision, Mission and Value

Vision

To be the most valued catering services partner in Asia; we focus on quality and creativity to support customers in achieving their ultimate goals.

Mission

  • Strive for the highest quality and safety standards throughout the supply chain
  • Research and develop innovative solutions for mutual benefits of all business partners
  • Simplify our systems and processes to make it easy for our customers
  • Pursue sustainable business growth to maximize returns on investment
  • Engage and develop our people to excel
  • Develop environmental and corporate social responsibility leadership

Value

  • Caring
  • Respect
  • Excellence
  • Adaptability
  • Teamwork
  • Ethics

Environment

Environmental Policy

CPCS is environmentally responsible by minimising the impact on the environment whilst conducting its business.

Environmental Achievements 2010

One of the environmental priorities at CPCS is to encourage the creation of a ‘Green’ work-place. We proactively look for ways to reduce energy consumptions, carbon footprints and encourage our staff to take part in environmental activities. Summarised below is a review of the highlights of actions achieved in 2010.

1. Replacement of LED Lightings

LED lightings were installed in the Lobby, Inbound and Outbound areas to replace traditional halogen lamps saving approximately 15,800 kWh of electricity per annum.

2. Installation of Light Reflectors in the Cold Rooms

Over 390 luminosity enhancement jackets were installed in all the cold rooms. This resulted in doubling the light power (lux) of fluorescence light tubes whilst reducing the number of tubes by 360 and saving 190,000 kWh electricity annually.

3. Replacement of evaporator coils

The Cold Room evaporator coils were replaced in 2009 and 2010 to reduce refrigerant usage. This action has reduced refrigerant consumption by 25% since 2008.

4. Hyroflow Devices Installed

Water contains mineral salt, which accumulate on the inner surface of boilers as mineral scales. This reduces heat transfer efficiency which in turn decreases diesel consumption. In 2010 Hydroflow devices were installed to overcome this drawback, successfully reducing diesel consumption and saving 96,600 litres of diesel per annum.

5. New Catering Trucks

Two new Euro V catering trucks were purchased in 2010 with reduced carbon emissions and consequently contributing to a better environment.

6. Reducing Food Waste

Reducing food waste is one of the biggest challenges for an in-flight catering facility. In 2008 CPCS took the initiative to donate food waste (end cuts and meat trims) to a local pig farm. They have subsequently expanded this practice to include the Swire SD group.

In 2010, CPCS conducted a feasibility study to sell watermelon end-cuts to a juice supplier. After conducting several trials and evaluating internal hygiene and logistics requirements these end-cuts are now collected by the supplier and processed into fruit juices. This initiative has reduced the need to send waste to a landfill site whilst also generating additional revenue.

7. Environmental Awareness Week

The Reduce, Reuse and Recycle Campaign started in 2009 allowed staff to purchase or exchange books, CDs and DVDs. So successful was this event that it was held again in 2010. The money collected from the sale was donated to UNICEF.

8. Ecological Tour

An ecological tour was organized to visit Yan Chau Tong Marine Park. It was a great day out for staff to experience and enjoy nature and have a better understanding of the geological treasures available in Hong Kong.

9. Environmental Awards and Participation

CPCS is committed to the 4Rs of waste management - Reduction, Re-use, Recycling, Replace evidenced by our achievement of the Class of Good Wastewi$e Label. CPCS devotes considerable effort to adopt best practices for protecting the environment. With continuous participation in environmental practices such as:

  • Clean Air Charter – Certification 2009. Organised by Hong Kong General Chamber of Commerce
  • Earth Hour – organized by WWF
  • WasteWi$e Label 2010 (Class of Good) - organised by Hong Kong Awards for Environmental Excellence.
  • 14001 accreditation since 1996 – certified by DNV.
  • CPCS has joined the Hong Kong Airport Authority Carbon Reduction Pledge to reduce airport-wide carbon emissions by 15% per workload unit by 2015 from 2008 levels.

 

 

Environmental Plan for 2011
1. Air quality

CPCS will continue to commit to Clear Air Charter actions such as:

  • The purchase of high-loaders equipped with Euro 4 or higher emission control standards
  • Conduct cleaning of the entire air ventilation system in the company on a regular basis and assess the air quality of offices on a yearly basis in accordance with the Indoor Air Quality requirements.

2. Condenser Replacement

The air cool condensers in the blast chiller will be replaced by more energy efficient water cool condensers, saving approximately 670,000 kWh of electricity per year.

3. Replacement of halogen lamps

CPCS will continue to replace traditional halogen lamps with LED lighting in 2011.

4. Green Environment

To create a greener environment and to reduce carbon emissions, CPCS will renovate the outdoor facility by planting more trees and flowers in the car park and study the option to develop a ‘green’ rooftop.

5. Collection of Recycling Materials

CPCS will collaborate with recycling partners to extend the collection of recyclable items to include glass, tin foil, and other food packaging materials.

6. Environmental Awareness

To raise staff awareness on environmental issues, visits to organic farms and eco-tours will be arranged and ‘Green Living Tips’ to save natural resources will be posted on to notice boards and computer wallpaper. CPCS will also sponsor internal photography competitions and other recycling campaigns in 2011.

 

 

 

Occupational Health and Safety

OH&S Policy

All operations in CPCS will be carried out in a manner that safeguards the health and safety of all our stakeholders where it is reasonably practicable.

OH&S Initiatives in 2010

1. Target Setting

Each year CPCS analyses all industrial accidents to understand and implement corrective actions in order to set continuous improvement targets. Performance against these targets is then monitored and reported in the monthly performance with detailed explanation and follow-up actions at the monthly Senior Management governance meetings. In 2010, the number of industrial incidents was reduced by 19% comparing with 2009.

2. Monitoring and Compliance

Annual external safety audits are conducted to ensure CPCS compliance with Labour Department Regulations. Additionally CPCS conducts its own internal safety audits monthly with the findings reported to Line Management. Improvement training sessions are implemented as necessary.

3. Education and Training

Refresher safety training is conducted every year to ensure:

  • Designated first aid staff maintain and renew their qualification.
  • General staff awareness

Safety articles are published on a quarterly basis in Intercom, the internal CPCS staff magazine, to raise staff awareness on industrial safety. Drivers are sent to attend the Road Safety Seminar organized by Hong Kong Police Force in September 2010

4. Awards and Communication

Each year the Hong Kong Airport Authority present safe driving recognition awards and in 2010, three operations staff were awarded the Airport Staff Safety Recognition for their outstanding performances.

 

 

OH&S Plan for 2011

In addition to the above initiatives, the Safety Team will collaborate with relevant departments to arrange the following activities in 2011:

1. Risk Assessment in Operations Department

In order to proactively diagnose and monitor safety conditions in the Operations Department working environment, a risk assessment exercise will be conducted in a phased approach with Operations Senior Management.

2. Behaviour Based Safety Program (BBS)

In order to reduce industrial accidents caused by “human error”, the Safety Team will implement the BBS program continuously to ensure proper execution of working procedures.

3. Strengthen communication with line departments

To strengthen the communication with the major operational departments, the Safety Team will share monthly safety performance with Heads of Department and Section Heads. This information will also be cascaded down to the frontline staff through departmental briefing and circular.

4. Recruit new First Aiders

It is necessary to train up new First Aiders to handle emergencies. A Recruitment campaign will be held and training courses will be co-organized with the Hong Kong Red Cross in order to equip first aiders with skills and provide them with proper certifications.

5. Health and Safety Campaign

To promote the importance of a healthy work life balance and workplace safety culture, a well-being campaign will be introduced for all staff in 2011. Promotion booths as well as certificates presentation to safety ambassadors will be held during the campaign.

 

 

Organizational Development

WE Project Initiatives in 2010

In order to prepare people and rejuvenate the company culture to face accelerating internal and external challenges, CPCS launched the Organisation Development (OD) Project in 2010 and named it as “We Excel Project”. The programme was implemented across the entire organisation in a systematic approach designed to improve organisational effectiveness. The programme features the CPCS vision, mission and values (VMV) that drive organisation behaviour, sets clear business direction, guides leadership & strategy and prescribes our culture & identity. Below is a brief summary of the OD initiatives launched in 2010:

  1. Communication
  2. CPCS' Values Promotion
  3. Performance Management & Development

 

1. Communication

Steering Group/ Champion Group /Ambassadors Group
A Steering group was formed with members from the Senior Executive and various departmental managers. The objective of the group is to drive and implement the WE project and to promote staff awareness and involvement. Early initiatives introduced include:

  • Catwalk Show
    The Champion Group and the Management Team prepared a catwalk show for the annual spring dinner to promote the VMV.

  • Staff Alignment Survey
    A Staff Alignment Survey was conducted in March. The survey aimed to collect feedback from staff in order to understand their feelings and align their motivation with the company’s VMV. More than 90% of staff responded. The survey result was communicated with staff. Departmental action plans were developed. Two corporate projects related to staff canteen and staff washrooms have been launched. At the same time, team-building workshops would be organized across the company with an aim to enhance teamwork/communication/motivation.

  • Focus Groups
    Two Focus Group sessions were conducted in July to collect feedback from staff on various issues and the findings have communicated to all staff.

 

2. CPCS' Values Promotion

The Champion Group organised a number of activities in 2010 to promote CPCS’ values:
C
aring / Respect / Excellence / Adaptabilility / Teamwork / Ethics. The varieties of the activities spread from management serving staff in the canteen, staff family visiting the comapny to ICAC Talk with a coverage of all staff to staff families.

 

3. Performance Management and Development

To strengthen the communication with the major operational departments, the Safety Team will share monthly safety performance with Heads of Department and Section Heads. This information will also be cascaded down to the frontline staff through departmental briefing and circular.

  • Development Centre
    A 2-day Development Centre was conducted in May for 18 senior staff to provide development assessment of participants. Personal Development Plan was developed by the participants with advice from their Department Head.

  • Performance Management System Training
    The company will revamp the Performance Management System (PMS) for senior staff in 2011. PMS training classes were organised in December 2010. The key of the new PMS system is the competency based assessment criteria. The process is equally importance to the result. Appraisers and appraisees are to keep close communication in the process.

 

 

WE Project Plan for 2011

In 2011, building on the foundation laid in 2010, the focus of “WE Project” will be to identify our competitive advantages and taking actions to enhance staff communication; promote CPCS’ values and strengthen leadership development in moving towards the direction of VMV.

 

 

Corporate Social Responsibility

CPCS fosters good relationship with the community where we are in and support its total growth with respect to people’s culture and heritage.

CPCS has been awarded as a Caring Company since 2004.

 

CSR Initiatives in 2010

1. Employment Opportunities

In 2010, we organised 16 recruitment activities in Tung Chung in providing job opportunities to the local community. More than 100 new joiners living in Tung Chung joined us.

2. Community Service

In 2010, the team organised 4 activities for seniors and deprived families who are living in Tung Chung: Visit to HK Wetland Park, a visit to CPCS and a delicious lunch, distributing moon cakes in Mid-Autumn Festival. We had reached 300 people in the community.

In 2010, the volunteer team won the honor of “2009-2010 Best Corporate Volunteer Service Project Competition – Merit Award” from HK Social Welfare Department recognising our commitment and dedication to serve the Community.

3. Cash and Food Donation

The Company encourages staff to extend our care to those in need through making donations and gifts.

In 2010, CPCS and staff members made donations in various forms:

  • Cash donation to Oxfam
  • Donation to UNICEF for the tragedies of Qinghai Earthquake & Gansu Mudslide & Pakistan Floods
  • HK Community Chest - The Green Day & Dress Special Day
  • Donation to Orbis
  • Hong Kong Round Table through joining CX’s - HK Grand Prix Pedal Kart Race
  • Food Donation to the People’s Food Bank
  • Blood Donation to HK Red Cross

In 2010, CPCS also sponsored food to the following charity events:

  • Ngong Ping Charity Walk
  • HK Grand Prix Pedal Kart Race
  • Airport visit of rehabilitation schools

 

Staff Engagement

To enhance staff loyalty, happiness and well being, CPCS has arranged various activities for staff to take part.

1. Pre-retirement Workshop

For the retirees to be well prepared for their retirement and for the ease to cope with psychological and social challenges, CPCS invited consultants to provide a workshop for those who were interested. The workshop included topics of financial planning, health and nutrition.

2. CPCS Tour Visit

In 2010, CPCS has organized an event for our colleagues to bring their family or friends to visit the facility. The tour included a lunch tasting of the freshly cooked in-flight meals. Staff family members found it particularly fascinating seeing how in-flight meals are produced and have gained an enjoyable insight of the working environment of their family members.

3. Sports and Recreation Ceremony

For staff to have a balanced work-life and have fun outside of work place, our Sports and Recreation (S&R) team has formed various sports clubs and activities throughout 2010. There were bowling, table tennis, badminton and golf competitions. Activities such as barbeque where staff can also bring along their friends and families; festive parties such as Christmas party and Spring dinner were also arranged last year.

 

CSR Plan for 2011

In 2011, we will continuously extend our recruitment activities in Tung Chung and the neighbouring districts to offer job opportunities to support the local community.

At the same time, we will work with NGOs in Tung Chung to provide volunteer services in the community. In order to encourage staff to embrace the caring culture, we will recruit more members to join our volunteer team to participate in the community activities. We are committed to build a connected community through care and love.

 

 

Sustainable Purchase &
Supply Chain Engagement

CPCS preaches to our supply chain on our conviction in sustainable development. We favour suppliers who champion our sustainable development policy.

Our Green purchase practice was developed since the implementation of ISO 14001 EMS in 1996.

 

Initiatives in 2010

1. Research on Sustainable Seafood

Our purchasing team has dedicated time into sourcing for Sustainable Seafood. In the market, there are different suppliers putting forth different claims about the sustainability of their products. Our research focus was to find the reliable world standards about sustainable seafood. Meanwhile, our team continues to recommend our customers to change from wild catch seafood to farmed sources.

2. Sourcing Environmental Products

One of our procurement objectives is to replace existing products with environmental products. By phase, we have replaced our top used paper materials such as hand paper towel, printed matters and paper with FSC paper. Our business name cards used to be made up of 70% FSC paper is now printed on 100% FSC paper. The team also started to source environmentally friendly plastic products such as: biodegradable plastic bag and biodegradable plastic wrapping film.

To reduce carbon footprint, we aim to source more locally rather than from overseas.

3. Preparing Suppliers for the Minimum Wage Law

In view of minimum wage law is coming to force in May 2011, our team proactively met with our contractors in early 2010 to highlight our concern and have been working closely to ensure a smooth transition on time.

 

 

 

Action Plan for 2011

1. Renew Sustainable Development Policy for Suppliers

One of our initiatives is to revise our Supplier Corporate Social Responsibility Code of Conduct into a more comprehensive Sustainable Development - Supplier Code of Conduct. Guidelines and preference would be set for suppliers to support CPCS sustainable development.

2. Sourcing For Sustainable Products

We look forward to expand our search for sustainable products. We would continue to work with our suppliers to narrow the price gap between the sustainable products and the standard products, so that customers are more willing to adopt the sustainable products soon.

 

 

Attachment 1
Clean Air Charter –
the commitment of CPCS
  1. Operate by a recognised world class standard on emission of air pollutants, even if it is not required to do so here.
    Commitment of CPCS: Diesel used by highloaders and boilers are the major sources of direct emissions produced by CPCS. Currently, all the new highloaders purchased comply with Euro 4 standard. All trucks undergo regular checks to ensure the engine is operating normally to prevent incomplete burning of fuel. Emissions from CPCS’s boiler are monitored by tests to ensure the combustion is normal. CPCS only uses ultra-low sulphur diesel.

  2. Use continuous emission monitors (CEMs) at significant sources.
    Commitment of CPCS: The exhaust fumes of highloaders are being checked during maintenance.

  3. Publish information on energy and fuel use, as well as total emissions of air pollutants annually and timely, if emissions are significant.
    Commitment of CPCS: Our fuel consumption is reported in one of the data that is being collected in CPCS including our sister companies in our current EHS data collection regime.

  4. Undertake to adopt energy-efficient measures in their operations.
    Commitment of CPCS: A number of projects have been done to reduce the energy as well as fuel needed for our operations. For example:
    a. Energy efficient light tubes are being used to reduce the use of electricity i.e. indirect emission
    b. Demand control ventilation system installed in canteen to adjust the air con according to people traffic to reduce electricity consumption
    c. Steam recovery system installed to recover unused steam to preheat water to reduce diesel consumption
    d. Reflective jackets installed in light box to reduce the number of light tubes needed and thus to reducing the use of electricity

  5. Identify and encourage business measures to be taken on days when air pollution is high.
    Commitment of CPCS: We have found this technically challenging to implement as CPCS has no control on the flight schedule and thus production of inflight meals, but CPCS will try every single effort to reduce emissions at all times.

  6. Share air quality of business with others.
    Commitment of CPCS: We will share this information through CPCS Annual Environmental Report.

 

 

Attachment 2
Occupational Health and Safety Policy

All operations of CPCS will be carried out in a manner that safeguards the health and safety of all our stakeholders where it is reasonably practicable.

  • We will comply with applicable Hong Kong legislation as well as other requirements to which the Company subscribes; every effort will be made to achieve continuous performance improvement throughout our operations.
  • OH&S considerations are integrated into the Company’s business processes and are given due weight with other business considerations.
  • The Management will provide full support to the Safety Committee in the implementation of OH&S policies, rules and practices that are reasonably practicable with emphasis on risk identification, risk assessment and risk control.
  • We will have systems in place to educate and train employees regarding their responsibilities in relation to OH&S. Line managers are responsible for ensuring that employees and associates are competent in and aware of all applicable OH&S practices.
  • We require all sub-contractors and suppliers working within our premises to observe our safety practices.

The Environmental, Health and Safety (EHS) Steering Committee, which is chaired by our Chief Executive Officer, provides management support as well as adequate financial and physical resources in the implementation of this policy.

 

 

Attachment 3
Business Partnerships Policy

CPCS preaches to our supply chain on our conviction in sustainable development. We favour suppliers who champion our sustainable development policy.

  1. We identify the first layer key suppliers and communicate to them our sustainable development policy and request for cooperation.
  2. We conduct a survey to the first layer key suppliers on their compliance and willingness to comply to our sustainable development policy.
  3. We reflect the policy requirements in the supplier audits.
  4. We evaluate the current performance of the first layer keys suppliers as reflected in the supplier audits and survey exercise.
  5. Based on the evaluation results, we consider taking appropriate actions accordingly.

 

 

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