We commit to formalizing an environmental management system to support our goal of utilizing natural resources, such as energy and water, more efficiently and reducing our emissions and waste generation. All our stores are compliant with applicable environmental regulations.
We regularly conduct internal environmental audits to ensure this compliance. Similarly, our stores are subject to annual external environmental audits by the Department of Environment and Natural Resources. If needed, corrective actions are immediately implemented for continuous compliance with environmental regulations.
We also regularly study and examine the means by which we can further improve our environmental management system and our use of various environmental resources. These include training and awareness programs for our employees as well as the necessary communications to address any environmental management issues.
Senior management, more specifically our operations, systems, supply chain, and technical service heads, hold responsibility for these environmental issues. A governance structure is also in place at the store level, with assigned roles and responsibilities, to ensure that environmental issues or concerns are addressed.
To stay abreast of environmental issues, we will consult with stakeholders regularly and take action when material environmental concerns arise. We will also work on increasing the environmental awareness of our stakeholders for the benefit of the communities, the Company, and the planet.
We will keep stakeholders updated on our environmental performance as well as on developments regarding environmental issues through our succeeding sustainability reports which will be published annually. We are working towards formalizing these commitments via an environmental policy to be approved by senior management as we aim to successfully manage our impact to the environment.
Our Scope 11 and Scope 2 greenhouse gas emissions in 2019 amounted to an estimated total of 28,538 tonnes2, accounting for 22% and 78% of our total GHG emissions respectively. With our GHG intensity at 0.73 tonnes per square meter.
Our total electricity consumption in 2019 amounted to 31,198,382 kilowatt hours3. This is 3% higher than our electricity consumption of 30,274,289 kilowatt hours in 2018 given the increase in store count. While our restaurant operations expanded in 2019, we managed to reduce the electricity intensity across our stores by 8% from 8.68 megawatt hours per square meter to 7.97 megawatt hours per square meter.
Having energy efficient stores has become more and more vital to PIZZA as we move along the path to sustainability by continuously harnessing energy efficient technologies in our stores. We have gained an average energy savings of 8% in 2019 from the 28 stores fitted with thermal insulation, translating to lower carbon emissions.
In 2019, our total water consumption amounted to 462,970 cubic meters4. Despite growing 36% compared to 2018’s 341,405 cubic meters due to our higher store count, we were able to mitigate the increase in our water intensity which grew by 18% from 10.03 cubic meters per square meter to 11.83 cubic meters per square meter.
In efforts to reduce our water consumption, we have installed automatic low-flow hand washing machines in 16 of our stores for guests and employees. In addition, we piloted a water recycling initiative which would allow us to reuse water in other parts of the business.
Packaging & Waste
In its second year, Project Panda remains as a centerpiece among our initiatives toward sustainability. Through our partnership with World Wide Fund (WWF) for Nature Philippines, Project Panda went into full gear in 2019 with WWF’s #AyokoNgPlastik campaign and sought to significantly reduce single-use plastic items and packaging from our stores.
This is aligned with our goal of becoming plastic neutral. For this, we partnered with Republic Cement in May 2019 to co-process non-specific, recovered post-consumer plastic waste. Co-processing converts these plastic wastes into energy, replacing coal as alternative fuel in cement production. From this partnership, Republic Cement was able to displace 89 metric tons of fossil fuel, while PIZZA was able to achieve its first year of being 100% plastic neutral in January 2020.
PIZZA will continue its 100% plastic neutral initiative through its recent partnership with Plastic Credit Exchange for plastic offsetting, as well as the verification and certification of this activity. Plastic Credit Exchange has released a newsletter on the partnership, which may be viewed here.
1 Calculations were based on IPCC 2006 Guidelines for National Greenhouse Gas Inventories.
2 Calculations for liquefied petroleum gas consumption were based on monthly store expenses. Stores with incomplete data were assigned the per-restaurant daily average computed from available data for their respective store formats, multiplied by the operating days for the year. Gas and diesel consumption were based on monthly store expenses.
3 Calculations for electricity consumption were based on monthly store bills. Stores with incomplete data were assigned the per-restaurant daily average computed from available data for their respective store formats, multiplied by the operating days for the year.
4 Calculations for water consumption were based on monthly store bills. Stores with incomplete data were assigned the per-restaurant daily average computed from available data for their respective store formats, multiplied by the operating days for the year.