Water Management

The agricultural sector uses 70% of the world’s accessible freshwater supply, and many countries are reaching, or have already reached, their renewable water limits. With growing climate instability resulting in increasing droughts and other water pollution concerns, water scarcity is quickly becoming a top issue in the agriculture sector and governs where plants are grown, placing limits on productivity.

Managing water resources to maximize water efficiency, minimize pollution, and protect access to water for other users is truly a shared challenge for food processors.

Responsible farming focuses on sustainable crop cultivation and efficient drainage systems, with innovative as well as tried-and-tested practices, including minimizing build-up of surface water during heavy rain and positioning grass strips at strategic points to slow down water flow.

We look for ways to optimize water use in all of our toll manufacturing operations, reduce water usage and increase water reuse and recycling.

1. In order to reduce fresh water usage and avoid water treatment costs, DMPI uses the water from steam and pineapple juice of its evaporators and water from mill juice from its Reverse Osmosis system for Ultrafiltration System Clean-in-place and Ion Exchange Plants regeneration.
   
   
2. In the year ended April 30, 2021, the Water Usage Ratio (“WUR”) of the Cabuyao PET Plant (measured as liters of water used per liter of product manufactured), was 9.72. This is within the Company’s five-year goal.

Climate Change Adaptation and Energy Efficiency

We face opportunities and risks associated with climate change. The predicted impacts of climate change, such as increased temperatures, less reliable water supplies, and more intense extreme weather events, can significantly impact our operations and supply chain.

We closely monitor our carbon footprint. While most manufacturing companies, including food companies, are carbon positive, meaning they emit more carbon dioxide into the atmosphere than they sequester or absorb, the carbon footprint of Del Monte Philippines, Inc. (DMPI) is negative. DMPI is the largest producer of pineapples in the country and its vast 26,000-hectare pineapple plantation and forest areas reduce the amount of carbon dioxide, offsetting any emissions in the atmosphere. There are not many companies that are carbon negative or even carbon neutral. Fewer carbon emissions are better for the environment. DMPI, a leading manufacturer of food and beverages, is uniquely positioned amongst food companies to help mitigate climate change. DMPI plants various timber trees in plantation camps, company grounds, and facilities. Bamboos are planted along field boundaries and non-arable land.

The Company continually assesses our investment opportunities in renewable energy solutions in each of our facilities. A number of renewable energy projects have been implemented across our facilities in the Philippines.

In the Philippines, Del Monte embarked on a renewable energy project that produces biogas using cannery wastewater. The waste-to-energy facility generates 2.8 MW of electricity. More significantly, cleansed water discharged at coastal waters of Macajalar Bay has Biochemical Oxygen Demand (BOD) levels below government-mandated levels. The waste-to-energy facility supports our Company’s long-range plan for increased production which ensures 100% wastewater treatment and serves as a shield against unstable power supply and power cost increases.

We will continue to seek out energy reduction opportunities across all our facilities and invest in improvements that collectively reduce our air emissions, including GHG, and our operating costs. 

1. DMPI believes it has a negative carbon footprint given its vast 26,000-hectare plantation and more than half a million trees it has planted and added to the forest cover around its plantation. DMPI’s carbon footprint had net sequestration of 490,382 metric tons of CO₂ in the year ended December 31, 2020. Accordingly, the Company believes it is carbon negative based on the Inter Panel Climate Change (“IPCC”) guidelines.
   
   
2. The Company’s plantation is GlobalGAP certified. It also has a Philippine Good Agricultural Practices certificate issued by the Department of Agriculture. The plantation and fresh packing facilities for fresh fruits have been certified ISO 9001:2015 by SGS United Kingdom Ltd. Systems and Services.
   
   
3. GlobalGAP honored DMPI with the Good Agricultural Practices Award (2018) for demonstrating high standards and excellent implementation of GlobalGAP principles on its farms.
   
   
4. For better soil and drainage management, the Crop Growing Units implement deepening of ditches, install auxiliary canals and silting basins specially designed for each field, and plant along river easement near pineapple fields to prevent soil erosion. The Company does soil ripping in lieu of plowing to retain more organic matter on the top layer of the soil profile and incorporate pineapple plant residues in the field to maintain soil organic matter at desirable levels.
   
   
5. Renewable Energy – Solar Power: The Company’s goal is to reduce greenhouse gas emissions, mitigate climate change and diversify its energy supply through the use of renewable energy, including solar power. The Company has projected savings of approximately PhP 356 million (based on a fixed lease rate of ₱3.75 kilowatts per hour) across three of its sites (the Bugo Processing and Production Facility, the plantation, and the Cabuyao PET Plant). The Company targets to complete this 2.0 MW solar energy project for the Bugo Processing and Production Facility and to install 1.5 MW of solar power in the plantation and the Cabuyao PET Plant in the fiscal year 2023. At completion, approximately 60% of the energy capacity of the Bugo Processing and Production Facility will be renewable energy including the current 2.8MW waste-to-energy.  In addition, the Company will install 1.5MW solar power in the plantation and Cabuyao plant by FY2023 thereby increasing the total renewable energy to 6.3MW.
   
   
6. The Company has a waste-to-energy facility that has a capacity of 2.8 MW of renewable energy from the wastewater of its Bugo Processing and Production Facility into renewable energy, ensuring 100% wastewater treatment and serving as a shield against unstable power supply. The facility generates electricity and cleanses water discharged to the coastal waters of Macajalar Bay, which has Biochemical Oxygen Demand levels below the government-mandated levels of 100 mg/liter. In the year ended April 30, 2021, renewable energy contributed to 17% of the Bugo Processing and Production Facility’s power requirement.
   
   
7. DMPI is a recipient of the “Don Emilio Abello Outstanding Award” for Energy Efficiency.

 Environment                           

Under our sustainability framework, we have significantly enhanced our stakeholder advocacy program for environmental conservation. Our carbon footprint remains carbon-negative. However, we continue to undertake many initiatives during the year to reduce process residues, strengthen energy conservation in all worksites and plantation homes, and explore more efficient energy sources.

1. The DMPI office in Manila is LEED Silver-certified as it provides a framework for a healthy, highly efficient, and cost-saving green building. This certification is a globally recognized symbol of sustainability achievement.
   
   
2. To date, the Company has planted around 610,000 indigenous and commercial trees in different areas of the plantation in Bukidnon through the Labor Management Councils of DMPI, the Foundation, and its cooperative partner DEARBC. 
   
   
3. Employees of the Bugo Processing and Production Facility conducted their annual coastal clean-up of the shoreline of Macajalar Bay in Bantiles, Bugo, Cagayan de Oro City.
   
   
4. Various flora and fauna are found around the plantation such as Hedychium Philippines or the Philippine Camia (“Camia”), Amaurornis Phoenicurus, White-breasted waterhen (“Tikling”), Xanthostemon verdugonianus, Philippine Iron Wood (“Magkono”), and Spilornis holospilus, Serpent Eagle (“Banog”).