Driving Responsible Consumption

We want to be part of a shift to more responsible growth that will not only sustain purposeful employment and nourish human health, but also conserve the environment and natural resources for future generations to enjoy.

According to the Global Risks Report concerns about the health of our planet dominate risk perceptions among both experts and world leaders in business, government, and civil society over the short, medium and long term.

Rising commodity prices and volatility are exposing the limits of a linear economic system characterised by “take-make-throw” business models. At Jardines, we believe that circular approaches to business can offer viable and desirable alternatives. In our own operations and supply chains, we aspire to do more with less, make better use of natural resources, reduce waste at source and transform waste into new resources.

Key considerations for Jardines’ responsible consumption strategy

China and Asia more broadly will continue to experience rapid economic growth and urbanisation, placing increasing demand on natural resources

Policy and regulatory frameworks present barriers as well as opportunities for innovation in the circular economy

Resource Efficiency and Circularity

In the context of the Group’s sustainability strategy, responsible consumption focusses on reducing negative impacts and promoting positive impacts from the Group’s operations and value chain in three key areas: plastic, food and nature.

Plastic is an important environmental challenge that all BUs need to address. Reducing food waste, enhancing food security and promoting sustainable food are imperative for meeting the needs of a growing population in the face of climate change. We aim to promote circularity to utilise the resources that would otherwise be disposed as waste. In addition, biodiversity which supports climate resilience is increasingly important around the world and is relevant to several of our businesses and their supply chains.

The Responsible Consumption Working Group has been established and is working to identify opportunities to leverage the Group’s scale for optimising the Group’s contribution to resource efficiency and circularity.

Source: 2021 Operation Santa Claus

Initiatives across the Group

Phasing out Single-Use Plastics

In 2018, MOHG set an ambitious goal of eliminating single-use plastics by March 2021. This was before the COVID-19 pandemic hit and although they have fallen short of their initial goal, they are still pushing through with the commitment and aim to eliminate 99% of single-use plastics by the end of 2022.

The goal is 99% as they recognise that there will be some single-use plastics that are difficult to avoid, given limitations in market options, plastics introduced due to heightened COVID-19 regulatory requirements and the lack of direct operational control over plastic packaging from suppliers. Fulfilling this commitment would mean avoiding more than 921 tonnes of plastic waste each year.

Over the past few years, MOHG has been tracking its progress towards elimination of single-use plastic via internal processes. In 2022, it will strengthen the reporting process by engaging an independent third-party, LRQA, to verify hotels’ single-use plastic elimination status.

As MOHG progresses along its journey in tackling this issue, it has found multi-stakeholder collaboration to be the key to success. Colleagues were engaged in identifying single-use plastic items and solutions and were equipped with sample checklists, guidelines, training and sharing of best practices and solutions over quarterly Sustainability Champion calls, case studies and via their internal social app, MyMO.

MOHG’s relatively small footprint limits their contribution to global plastic reduction, it is still in a strong position to drive important changes in the industry.

Surplus Food does not Need to be a Source of Waste

DFI strives to ensure that surplus food generated by its operating companies is donated well before expiry to charities and NGOs. Maxim’s Surplus Bread Donation Programme, for example, has saved and donated more than 5.6 million bread items since its establishment in 2009.

In Indonesia, DFI donates surplus food to Taman Safari, a world-class conservation facility with more than 3,000 animals to feed. DFI is also working with a start-up business called Biomagg to decompose food waste into animal feed and fertiliser using fly larvae.

In 2021, 44% or about 5.2 tonnes of food waste generated by restaurants in two IKEA stores in Hong Kong was diverted from landfill using a liquification process. In Hong Kong, DFI sends organic food waste to O . PARK1 recycling facility for conversion into biogas to generate electricity. In Singapore, thousands of kilogrammes of food waste are turned into fertiliser each month using a food waste management machine.

Circularity in Action

As one of Hong Kong’s most recognised catering brands, Maxim’s acknowledges its responsibility for reducing food waste at source while also giving waste a second life. In an innovative new development, during 2021, Maxim’s partnered with Breer, a start-up formed by students from Hong Kong University of Science and Technology, to turn surplus bread into craft beer.

During the year, Maxim’s spent eight months working with the Breer team to perfect the unique recipe for BOB—which stands for Bottle of Bread—a 5% ABV pale ale containing up to 25g of milk-free bread in each serving, and to commercialise the product through its city-wide restaurant chain. During the initial launch period in December 2021, Maxim’s donated HK$10 for every bottle sold to Operation Santa Claus, an annual fundraising campaign co-organised by the South China Morning Post and Radio Television HK.

Although small in scale at this stage, BOB is an exciting example of circularity in action; utilising surplus food to create economic value—and enjoyment—by putting it back into the supply chain instead of the landfill.

Conservation of Indonesia’s Abundant Biodiversity

Astra identifies potential impacts on biodiversity through an Environmental Impact Analysis (‘AMDAL’) conducted for all of its subsidiaries. Each of Astra’s subsidiaries prepares an environmental management strategy, which includes a biodiversity action plan. Astra’s agribusiness division continues to uphold a No Deforestation, No Peat and No Exploitation (‘NDPE’) policy in accordance with the Indonesian Sustainable Palm Oil (‘ISPO’) Initiative – an alliance between the Government of Indonesia, the United Nations Development Programme (‘UNDP’), the private sector and other NGO partners.

Astra’s Public Contribution Roadmap is the basis of its strategy for sustainable social contribution through four pillars. Astra Untuk Indonesia Hijau is the pillar that focusses on environmental protection by improving resource efficiency and reducing the climate impact of its business activities, while also preserving the natural environment of Indonesia in partnership with local communities. Under this pillar, Astra and its subsidiaries are implementing various initiatives to promote conservation and rejuvenation of Indonesia’s abundant biodiversity.

Astra’s Rare Local Fruit Diversity Conservation Programme (Pranaraksa) aims to prevent extinction of rare fruit species, by collecting seeds and cultivating them into plants on land owned and managed by Astra Group and its local community partners. In 2021, Astra Property organised the third major planting event under this programme; planting and committing to maintain 250 rare fruit trees indigenous to Indonesia.

To celebrate Indonesia’s Tree Planting Day on 28 November 2021, PT Agincourt Resources planted 3,500 seedlings in the vicinity of Martabe Gold Mine and the surrounding area as part of its land reclamation and rehabilitation programme. The company collaborates with local authorities and communities to cultivate native tree seedlings in nurseries located in two nearby villages.

Leveraging our Scale to Promote Responsible Consumption

It is important for Jardines to lead by example in order to leverage our scale and influence for promoting sustainable development in our value chain.

In 2012, MOHG was one of the first luxury hospitality groups to ban shark’s fin from its menus. In 2019, MOHG formalised their strategy and roadmap for Responsible Procurement. By the end of 2022, 100% of seafood served in its food and beverage (‘F&B’) outlets will comply with an expanded Avoid List of endangered species that aligns with the World-wide Fund for Nature’s Endangered Seafood Guide. Several luxury seafood menu items such as blue fin tuna, caviar and abalone will be phased out completely unless MOHG can source produce that has been certified by the Marine Stewardship Council or Aquaculture Stewardship Council.

Over time, MOHG’s commitment to leading the hospitality sector on responsibly-sourced F&B has expanded to encompass other ingredients. By the end of 2022, 100% of coffee, tea, vanilla and cocoa consumed in MOHG’s F&B outlets will be ethically and responsibly sourced from certified suppliers and by the end of 2023, 100% of eggs must be supplied from cage-free chickens. Furthermore, each outlet’s performance with respect to all responsible procurement targets will be evaluated and verified by an independent third party.

Demonstrating that sustainable luxury is good for business as well as the planet, Amber, MOHG’s upscale F&B outlet serving French cuisine in the Landmark Mandarin Oriental, Hong Kong, has an award-winning menu featuring responsibly-sourced meat and seafood, as well as vegetarian and vegan offerings. It earned two Michelin Stars for 14 years consecutively before being awarded the highly acclaimed Michelin Green Star in 2022.

As a major landlord of commercial properties in Hong Kong, Hongkong Land has been working with its F&B tenants, including MOHG’s F&B outlets in various locations, to achieve shared goals for sustainability performance. In addition to promoting responsible F&B procurement, Hongkong Land collaborates with its tenants to reduce consumption of single-use plastics by sourcing environmentally-friendly food packaging and utensils and installing drinking water fountains to displace bottled water.

In support of the Government’s Food Wise Hong Kong campaign, Hongkong Land operates food waste decomposters for the benefit of its tenants in all buildings in its Central Portfolio, each with a daily handling capacity of 2,250kg.

Learn more about Responsible Procurement at MOHG and HKL.