USCS SUSTAINABLE DEVELOPMENT REPORT · 2018-12-07 · uscs is committed to the safety of our employees and the sustainable development of our business contents 01 foreword from the

USCS SUSTAINABLE DEVELOPMENT REPORT

2017

ASPECTGENERAL STANDARD DISCLOSURESGRI CONTENT INDEX

GRI 4 REFERENCE REPORT LOCATION

ASPECTECONOMIC: SPECIFIC STANDARD DISCLOSURES


ASPECTSOCIAL: SPECIFIC STANDARD DISCLOSURES


ASPECTENVIORNMENT: SPECIFIC STANDARD DISCLOSURES


PAGE

PAGE

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International Association of Refrigerated Warehouses (IARW) / World Food Logistics Organization (WFLO) / International Institute of Ammonia Refrigeration (IIAR) / Refrigeration Engineers Training Association (RETA) / International Refrigerated Transportation Associations (IRTA)

Strategy & Analysis

Organization Profile

Identified Material Aspects & Boundries

Stakeholder Engagement

Report Profile

Governance

Ethics & Integrity

Economic Performance

Employment

Occupation Health & Safety

Diversity & Equal Opportunity

Energy

Water

Emissions

Effluents and Waste

G4-1

G4-3, G4-4, G4-5, G4-6, G4-7,G4-8, G4-12, G4-13, G4-14

G4-9

G4-10

G4-2, G4-11, G4-12

G4-15

G4-16

G4-17

G4-18

G4-19, G4-20, G4-21,G4-22, G4-23

G4-24, G4-25, G4-26, G4-27

G4-28, G4-29, G4-30

G4-31

G4-32

G4-33

G4-34

G4-56

G4-EN7

G4-LA1

G4-LA6

G4-LA12

G4-EN3

G4-EN5, G4-EN6

G4-EN8

G4-EN16

G4-EN17

G4-EN18

G4-EN19

G4-EN23

Foreword from the Chief Executive Office

Mandatory Disclosures and Organizational Overview

Organization - USCS Network

Workforce Information

Not Relevant

Commitment to Sustainability

Not included in this report. However USCS is a member of the following associations:

Organization - USCS Network

Parameters of this Report

Mandatory Disclosures and Organization Overview

Mandatory Disclosures and Organization Overview

Parameters of this Report

End of Report

GRI Index Content

Legal Form and Governance

Legal Form and Governance

Mission and Commitments

Membership of Defined Benefit Pension Plan - Table 7

New Employee Hires and Employee Turnover - Tables 4, 5 and 6

Employee Safety - Charts 1 and 2

Workforce Information - Tables 1, 2 and 3

Energy Consumption - Charts 3 and 4

Energy Consumption

Water Consumption and Discharge - Chart 6

Environmental Statistics

Environmental Statistics

Greenhouse Gas Emissions - Chart 4

Greenhouse Gas Emissions

Waste Oil Reduction

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12-13

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4

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6

5

5-11

5-11

5

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-

8-9

8-9

10-11

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16-17

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19-21

19-21

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28-29

28-29

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USCS IS COMMITTED TO THE SAFETY OF OUR EMPLOYEES AND THE SUSTAINABLE

DEVELOPMENT OF OUR BUSINESS

CONTENTS

01 FOREWORD FROM THE CHIEF EXECUTIVE OFFICER

02 COMMITMENT TO SUSTAINABILITY

03 PARAMETERS OF THIS REPORT

04 ORGANIZATION – USCS NETWORK

05 ORGANIZATIONAL STRUCTURE AND MARKETS SERVED

06 LEGAL FORM AND GOVERNANCE – BOARD

07 LEGAL FORM AND GOVERNANCE – INTERNAL AUDIT AND COMMITTEES

08 MISSION AND COMMITMENTS

09 WORKFORCE INFORMATION

10 NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER

11 ECONOMIC PERFORMANCE COVERAGE OF USCS DEFINED BENEFIT PENSION PLAN

12 EMPLOYEE SAFETY

13 ENVIRONMENT

14 ENERGY CONSUMPTION

15 GREENHOUSE GAS EMISSIONS

16 RENEWABLE ENERGY

17 WATER CONSUMPTION/DISCHARGE

18 WASTE OIL REDUCTION

19 APPENDIX

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4

5

6

7

8

9

10

12

13

14

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1

2

FOREWORD FROM THE CHIEF EXECUTIVE OFFICER

They say you’re known by the company you keep. In this case, I’m pleased to say United States Cold Storage (or “USCS” or the “Company”) enjoys its stature of working many of the nation’s leading refrigerated and frozen food manufacturers—from coast to coast and in every product category.

Meanwhile, I also consider that same statement with something of an internal perspective. That is to say it’s also important to evaluate United States Cold Storage by the quality of the company we keep—involving our employees, our communities and our environment.

It’s interesting how the focus of our reporting has dramatically changed and evolved during the past decade. Ten years ago, the primary topics of focus would have been profitability, returns and growth. Today, however, these focus areas involve

employee health and safety, environmental sustainability and our role as a good, responsible corporate citizen.

Previously, we thought United States Cold Storage was doing its best to provide a safe and pleasant work environment. Yet I’ve learned that it’s with increased focus and attention that we can truly drive change and create a safer, better environment for employees.

I’m pleased to report that 2017 was the safest year in USCS’ recorded history. Last year, the

company’s Total Recordable Injury Rate (TRIR) decreased by 22% and our Lost Time Injury Rate (LTIR) decreased by 7%. I’ll note, meanwhile, that we updated facility HACCP and Food Safety Plans to ensure compliance with FDA regulations. During 2017, USCS also certified 27 facilities according to BRC (British Retail Consortium)/GFSI (Global Food Safety Initiative) specifications.

From an environmental standpoint, I’m pleased to say that USCS has always been the industry leader. We installed our first solar arrays more than 10 years ago. We have relit warehouses to take advantage of the most energy efficient lighting systems. Moreover, in spite of some of the initial costs, we have designed our refrigeration systems to run as efficiently as possible—all while using the most environmentally sensitive refrigerants. Of course, we eliminated freon use many years

ago and have shifted during the past decade from large charges of ammonia on site. Likewise, we have replaced older ammonia systems with CO2 Cascade or new low-charge ammonia alternatives.

In 2017, USCS consumed 286,549,512 kWh (1,031,578 GJ) of power across all facilities, representing a 1% increase over 2016’s total of 283,747831 kWh (1,021,491 GJ). The average cubic capacity of the Company increased by 8.8% from 251,266,000 cubic feet (7,115,060 cubic meters) in 2016 to 273,476,000 cubic feet (7,743,993 cubic meters) in 2017.

"From an environmental standpoint, I’m pleased to say that USCS has always been the industry leader."

3

In order to account for the changing quantity of overall cold storage space, USCS internally uses power consumption per cubic foot to measure the energy efficiency of the Company as a whole. USCS continues to invest in ways to reduce power consumption, including LED lighting and variable frequency drives, as well as other renewable energy sources such as photovoltaic panels.

USCS aims to reduce power consumption per cubic foot year-on-year. Although power consumption increased in 2017, the increase was less than the corresponding increase in warehouse occupancy. As a result, USCS achieved a 7.8% reduction in kWh consumption per cubic foot in 2017 from 2016

In 2015, USCS commissioned its second solar array, a 2.7MW ground-based system, located adjacent to its refrigerated warehouse in Lumberton, NC. Aggregated with the solar array in Tulare, California, USCS generated 4,346,512 kWh of renewable energy in 2017, representing 1.5% of USCS’s annual electricity requirement. USCS continues to evaluate the feasibility of installing additional solar arrays at other warehouse locations.

USCS classifies its greenhouse gas emissions into those generated directly (Scope 1) and indirectly (Scope 2). In 2017, USCS generated the equivalent of 247,696,660 lbs. (112,416 tons) of carbon dioxide emissions. Carbon Dioxide emissions decreased by 11.6% in 2017 from the prior year, or 0.91 lbs. per cubic foot of warehouse capacity, a decline of 1.03 lbs. per cubic foot from the prior year. This result was the outcome of the Company’s multi-faceted energy management strategy that includes continued investment in energy efficient and renewable technology; construction of new, energy efficient, warehouses and the divesture of older, less energy efficient, warehouses; and continuous improvements in efficient warehouse design and operation

I am proud to lead a team of professionals dedicated to providing best in cold service to our customers—without compromising the safety of our workforce or the long-term sustainability of our resources. I am confident that in 2018, USCS will bring more improvements to the way we operate, for the benefit of all our stakeholders.

David HarlanPresident and Chief Executive Officer

5

4

COMMITMENT TO SUSTAINABILITY

United States Cold Storage Inc. is a subsidiary

of UK-based John Swire & Sons Ltd, the parent

company of the Swire Group. The Swire Group

has interests in Swire Pacific Limited, Swire

Properties Limited, Cathay Pacific Airways

Limited and Hong Kong Aircraft Engineering

Company Limited, which are all public

companies listed in Hong Kong, as well as a

number of significant privately

owned companies.

The Swire Group has made a commitment to

the development of sustainable businesses

by minimizing the group’s impact on the

environment through reducing waste

generation and investing in the communities in

which the group operates.

USCS shares the sentiment of our parent

company, and has taken several steps and

initiatives to reduce the carbon footprint of our

operations while providing a safe workplace

and healthier environment for the surrounding

communities. The information contained in

this report will serve as a benchmark for the

progress made by these initiatives

02

7 5

COMMITMENT TO SUSTAINABILITY

PARAMETERS OFTHIS REPORT

The 2017 Sustainable Development Report

covers the activities of all facilities within

United States Cold Storage during the 2017

calendar year. The previous report was issued

for the 2016 calendar year in 2017. This

report focuses on the USCS workforce and

their protection both financially and on the

job, the impact that our operations have on

the environment, and how we are planning to

improve in the future. This is the fifth iteration

of this report to follow the Global Reporting

Initiative Standard (GRI4) for sustainability

reporting while previous annual reports had

been issued to Swire without such a template.

As a result, there are portions of some metrics

that are not fully reported on due to limited

data recording.

02 03

6

ORGANIZATION - USCS NETWORK

04

HEADQUARTERS

WAREHOUSE & DISTRIBUTION

SACRAMENTO (2)

TRACYTURLOCK

TULARE (2)BAKERSFIELD

MINOOKAWILMINGTON

LEBANONOMAHA (2)

QUAKERTOWN (2)

MILFORD

HAZLETON

COVINGTON SMYRNALUMBERTON

WARSAW

MARSHVILLE

FRESNO (2)

DALLAS (2)

HARRISONBURG (2)

BETHLEHEM (2)

SYRACUSE

LAREDO (3)

MCDONOUGH (2)

FT. WORTH

ARLINGTON

DENTON

CAMDEN - HQ

LA VERGNE

MIAMI

LAKE CITY

9 7

ORGANIZATIONAL STRUCTURE AND MARKETS SERVED

This report covers the operational activities of USCS, together

with those of its subsidiary companies, collectively “USCS”. USCS

operates exclusively in the United States and is managed by

geographical region. As of December 31st, 2017, the Company

operated 38 facilities located in 13 states: California, Delaware,

Florida, Georgia, Illinois, Indiana, Nebraska, North Carolina,

Pennsylvania, Tennessee, Texas, Utah and Virginia. USCS

headquarters are located in Camden, New Jersey.

The USCS network of facilities services a customer base with

requirements ranging from primary storage to fully integrated third-

party logistics solutions. Today, USCS offers more than 291 million

cubic feet of temperature-controlled warehouse and distribution

space and has over 2,900 employees nationwide. Due to its wide

range of refrigerated storage and logistics services, USCS customers

include many of the top American and international food companies.

USCS is among the top five largest public refrigerated warehouse

(“PRW”) companies in the United States of America.

In 2017, USCS finished construction on two warehouse expansions in

Warsaw, NC and Covington, TN. USCS saw the start of construction

for three new warehouses in McDonough, GA, Fresno, CA and

Laredo, TX.

05

HEADQUARTERS

WAREHOUSE & DISTRIBUTION

SACRAMENTO (2)

TRACYTURLOCK

TULARE (2)BAKERSFIELD

MINOOKAWILMINGTON

LEBANONOMAHA (2)

QUAKERTOWN (2)

MILFORD

HAZLETON

COVINGTON SMYRNALUMBERTON

WARSAW

MARSHVILLE

FRESNO (2)

DALLAS (2)

HARRISONBURG (2)

BETHLEHEM (2)

SYRACUSE

LAREDO (3)

MCDONOUGH (2)

FT. WORTH

ARLINGTON

DENTON

CAMDEN - HQ

LA VERGNE

MIAMI

LAKE CITY

8

LEGAL FORM ANDGOVERNANCE – BOARD

06

The Board, which is tasked with organizational oversight and setting strategy, comprises three Executive Directors responsible for various aspects of the business, Non-Executive Directors representing the shareholder, John Swire & Sons Limited, and two Independent Non-Executive Directors.

J. B. Rae-Smith Non-Executive Chairman

David M. HarlanExecutive Director - President & CEO

J. Larry AlderferExecutive Director – COO

Charles de ZoeteExecutive Director – Vice President, Finance & CFO

Jack PeloNon-Executive Director

Paul HensonNon-Executive Director

Craig OwensIndependent Non-Executive Director

William R. DaltonIndependent Non-Executive Director

LEGAL FORM AND

GOVERNANCE – INTERNAL

AUDIT AND COMMITTEES

Internal audit USCS has an in-house Internal Audit function that is monitored by the Audit Committee and is overseen by the John Swire & Sons Limited internal audit department. The Internal Audit function carries out audits at all the Company’s facilities across the United States and at Head Office.

Audit Committee The Audit Committee is chaired by an Independent Non-Executive director. The other two members of the Audit Committee are comprised of one representative of John Swire & Sons Limited and the President and Chief Executive Officer. Furthermore, the Chief Financial Officer attends the Audit Committee meetings together with members of the Internal Audit function and a representative of our external auditors.

The Audit Committee’s remit, as set out in its Terms of Reference, involves: • Evaluating the adequacy of the mechanisms for the assessment and management of risk. • Reviewing risk management processes including policies around health and safety, the code of conduct and competition compliance. • Reviewing the external auditors’ proposed audit scope as well as the cooperation between internal and external audit. • Monitoring the timeliness of management’s response to recommendations made by the internal and external auditors. • Reviewing planned internal audit activities and considering their adequacy as a basis for an independent and objective opinion on risk management, control and governance. • Reviewing the effectiveness of the USCS systems for monitoring, addressing and reporting on compliance with laws and regulations. • Reviewing the financial statements and judgmental areas contained therein.

Other Committees A number of committees are in place at the Head Office which cover a range of issues including, but not limited to, Risk Management, Pensions and IT. Each facility has a Health & Safety Committee, which oversees the safety performance and initiatives in each location.

Policies and Procedures A Corporate Code of Conduct has been developed with the aim of making all employees fully aware of their responsibility for ensuring that USCS conducts its business in accordance with applicable laws and regulations. All new employees are given a copy of the Code of Conduct as part of their induction process.

Employee Communication USCS encourages dialogue between employees and Head Office management. This is achieved through regular visits by Head Office management to the local facilities, in-house training programs, employee surveys, magazines and newsletters.

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MISSION

08

United States Cold Storage is driven to advance, innovate, and serve companies seeking the best service, facilities, and logistics in the cold chain industry.

11

COMMITMENTS

CONNECT• We connect the links throughout the entire cold chain industry.

• We cultivate interpersonal, diverse connections among our customers, employees,

partners, stakeholders, and community.

• We sustain our connections for long-term growth and success.

PROTECT• We protect our people and focus on safety. We protect our customers and their products.

• We protect food for those who grow it, make it, and eat it.

• We protect the environment by reducing our footprint and focusing on sustainability.

RESPECT• We respect each and every member of our crew and care for each other.

• We respect each role, responsibility, and contribution of every member of our crew.

• We respect our customers and the food they entrust to us.

AFFECT• We positively affect the cold chain industry by being our best and doing our best.

• We affect growth by driving innovation instead of chasing it.

• We affect our company's success by building a future for generations to come.

PROGRESS• With dedication and determination, we strive on perfecting all aspects of the cold chain.

• We continually learn, with a focus on improving every day.

• We train and train again in everything that can make us a better business and better people.

12

USCS offers a wide range of employment opportunities across the country. However, the vast majority of those employed are warehouse forklift operators. USCS is committed to the safety and well-being of its entire workforce, providing extensive benefit plans for full-time employees.

Table 2. The total number of employees

broken down by type of employment

contract and gender

Table 3. The total workforce

broken down by region and gender

WORKFORCEINFORMATION

NEW EMPLOYEE HIRES & EMPLOYEE TURNOVER

09

Table 1. The total workforce broken

down by employees, supervised

workers, and gender

Total Workforce

Type Male Female Total

Total Employees 2,426 509 2,935

Supervised Workers 2,410 505 2,915

Executives 16 4 20

Contract Type


Total Employees 2,426 509 2,935

Full-Time: 2,404 498 2,902

Part-Time 22 11 33

Corporate 65 39 104 4%

Northeast 485 104 589 20%

Mid-Atlantic 142 47 189 6%

Mid-West 554 104 658 22%

South 756 99 855 29%

West 424 116 540 18%

Regional Location

Type Male Female Total %

Total 2,426 509 2,935

Entering Employment


Total 964 144 1,108

Full-Time 952 142 1,094

Part-Time 12 2 14

Leaving Employment

Entering Employment Leaving Employment

Male Female Total

792 78 870

791 75 866

1 3 4

Age Group Total

Total 1,108 870

Under 20 8

20- 24 239

25-29 285

30-34 176

35-39 112

40-44 98

45-49 87

50-54 61

55-59 29

60-64 13

65-69 0

13

208

239

126

104

41

56

25

28

22

8

Total

Entering Employment Leaving Employment

Location Total

Total 1,108 870

Corporate 15

Northeast 242

Mid-Atlantic 97

Mid-West 311

South 283

West 160

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208

44

302

213

91

Total

NEW EMPLOYEE HIRES & EMPLOYEE TURNOVER

Table 4. Turnover of

employment during this

reporting period

Table 5. Total number of

employees entering and

leaving employment during

the reporting period

broken down by age group

Table 6. Total number of

employees entering and

leaving employment during the

reporting period by region

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ECONOMIC PERFORMANCE COVERAGE OF USCS DEFINED BENEFIT PENSION PLAN

11

USCS operates both a defined benefit and a 401(k) pension plan. Employees are eligible to join the USCS defined benefit pension plan at age 21 and after one year of service. Employees fully vest into the defined benefit plan after five years of vesting service. As of December 31, 2017, 76% of USCS employees were members of the defined benefit plan.

USCS funds the defined benefit pension plan and no contributions are made by employees. As at December 31, 2017, the pension plan indicated a net funding deficit of $3.2 million, based on certain assumptions made by the Company’s independent actuaries.

Table 7. Breakdown

of Pension Plan

memberships.

Benefit Plan

Total USCS Employees: 2,935

Members of USCS Defined Benefit Plan 2,214 75.4%

Ineligible (employed less than 1 year) 703 23.9%

Ineligible (not yet 21 years of age) 14 0.5%

Ineligible (Part-time / Casual) 4 0.2%

15

The USCS management team has

continuously improved safety performance

while supporting business growth. These

efforts have shown fantastic results in 2017.

The USCS Total Recordable Injury Rate

(TRIR), Days Away and Restricted Time Rate

(DART), and Lost Time Injury Rate (LTIR)

were well below industry average.

2017 was the safest year in company

recorded history. The USCS crew

helped contribute to the record year

by implementing a completely new

powered industrial truck training

program, participating in a safety slogan

contest, conducting observations and

activity discussing safety programs with

employees during safe and sound week,

and investigating all reported incidents and

near misses to determine root causes.

EMPLOYEE SAFETY

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16

Safety Statistics

TRIRDART

LTIR

BLS TRIRBLS DART

BLS LTIR

20135.484.831.27

6.75.52.9

20144.2

3.260.94

5.64.12.1

20153.743.231.01

5.84.42.2

20164.333.720.85

5.64

2.1

20173.382.940.79

– – –

USCS Lost Time Injury RateUSCS Total Recordable Injury Rate

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

4.2

5.48

3.744.33

3.380.94

1.27

1.01

0.850.79

2017 SAFETY OVERVIEW

Chart 1. USCS Total Recordable Injury Rate Chart 2. USCS Lost Time Injury Rate

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USCS Lost Time Injury RateUSCS Total Recordable Injury Rate

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

4.2

5.48

3.744.33

3.380.94

1.27

1.01

0.850.79

2017 SAFETY HIGHLIGHTS

• 405 safety committee meetings conducted

• Total Recordable Injury Rate decreased by 22%

• 27 Facilities BRC (British Retail Consortium)/GFSI (Global Food Safety Initiative) certified for food safety

• Lost Time Injury Rate 62% below Industry Average*

* Represents the latest data (2016 full year) for the

refrigerated warehouse & storage sector provided

by the US Bureau of Labor and Statistics.

TRIR = Total Recordable Injury RateLTIR = Lost Time Injury RateDART = Days Away, Restricted, or TransferredBLS = Bureau of Labor Statistics

Table 8. Fice-year collection of

USCS and BLS safety statistics.

Chart 2. USCS Lost Time Injury Rate

ENVIRONMENT

13

USCS warehouses require electricity, water and lubricating oil to operate their refrigeration systems. The Company continues to implement energy efficiency measures, improve warehouse design and optimize operational practices in order to minimize its environmental impact.

The environmental performance indicators that USCS has identified include:

• Energy Consumption • Green House Gas Emissions • Water Consumption • Sewage Generation • Waste Oil Generation • Renewable Energy Generation (Solar)

The environmental performance indicators utilized were based on yearly statistics compiled from all USCS warehouses. A full breakdown of these statistics is provided in the Appendix.

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ENERGY CONSUMPTION

In 2017, USCS consumed 286,549,512 kWh (1,031,578 GJ) of power across all facilities, representing a 1% increase over last year’s total of 283,747,831 kWh (1,021,491 GJ). The average cubic capacity of the Company increased by 8.8% from 251,266,000 cubic feet (7,115,060 cubic meters) in 2016 to 273,476,000 cubic feet (7,743,993 cubic meters) in 2017. USCS internally uses power consumption per cubic foot to measure energy efficiency due to the increase in cubic capacity.

USCS continues to invest in ways that reduce power consumption including LED lighting and variable frequency drives, as well as in renewable energy sources such as photovoltaic panels. USCS aims to reduce power utilization 1.5% per cubic feet year-on-year..

Although power consumption (kWh) increased in 2017 due to company growth, power utilization (kWh/cu.ft.) continues to decrease through USCS' multi-faceted Sustainable Development Strategy.

14

As a result, USCS achieved a 7.8% reduction in kWh consumption per

cubic foot in 2017 from 2016.

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ENERGYCONSUMPTION

Chart 3. Five-Year Average USCS kWh per Cubic Foot

Table 9. Five-Year USCS Energy Usage

kWh per Cubic Feet

2013 2014 2015 2016 2017

1.191.14 1.13 1.12

1.03

USCS Energy

YearTotal Cubic Capacity (000) Total Electricity Utilization GHG Emissions

Cu. Ft. (000) Variance MWh KWh/Cu. Ft. Variance CO2 lb/Ft.3 CO2 lbs (000) Variance

20132014201520162017

208,020213,185239,612251,266273,476

6.5%2.5%12.4%4.9%8.8%

247,845243,137271,539280,668282,203

1.191.141.131.121.03

-3.8%-4.1%-0.7%-1.2%-7.8%

1.331.211.151.120.91

276,960258,273275,880280,302247,697

4.9%-6.7%6.8%1.6%

-11.6%

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Scope 2 emissions (electricity purchases) made up approximately 99% of greenhouse gas emissions for USCS in 2017. The remaining portion was generated from Scope 1 emissions (company owned vehicles).

USCS classifies its greenhouse gas emissions into those generated directly (Scope 1) and indirectly (Scope 2). In 2017, USCS generated the equivalent of 247,696,660 lbs. (112,416 tons) of carbon dioxide emissions. Carbon Dioxide emissions decreased by 11.6% in 2017 from the prior year, or 0.21 lbs. per cubic foot of warehouse capacity.

Chart 4. Five-Year Greenhouse Gas Emissions

GREENHOUSE GAS EMISSIONS

USCS Energy

YearTotal Cubic Capacity (000) Total Electricity Utilization GHG Emissions

Cu. Ft. (000) Variance MWh KWh/Cu. Ft. Variance CO2 lb/Ft.3 CO2 lbs (000) Variance

20132014201520162017

208,020213,185239,612251,266273,476

6.5%2.5%

12.4%4.9%8.8%

247,845243,137271,539280,668282,203

1.191.141.131.121.03

-3.8%-4.1%-0.7%-1.2%-7.8%

1.331.211.151.120.91

276,960258,273275,880280,302247,697

4.9%-6.7%6.8%1.6%

-11.6%

(000) lbs co2 per Cubic Feet

2013 2014 2015 2016 2017

1.331.21 1.15 1.12

0.91

1.60%1.40%1.20%1.00%0.80%0.60%0.40%0.20%0.00%

350,000,000300,000,000250,000,000200,000,000150,000,000100,000,00050,000,000

02013 2014 2015 2016 2017

Total USCS Electricity Consumption (kWh)Total Solar Generation (kWh)Percent of Total Electrical Consumption

USCS Solar Generation

Produced by Solar Production

22

In 2015, USCS commissioned its second

solar array, a 2.7MW ground-based

system, located adjacent to its refrigerated

warehouse in Lumberton, North Carolina.

Aggregated with the solar array in Tulare,

California, USCS generated 4,346,512 kWh

of renewable energy in 2017, representing

1.5% of USCS’s annual electricity

requirement. USCS continues to evaluate

the feasibility of installing additional solar

arrays at other warehouse locations.

RENEWABLE ENERGY

16

Chart 5. Solar kWh

Production Comparison

Cubic Foot

Chart 5. Five-Year USCS Solar Generation

WATER CONSUMPTION/DISCHARGE

Water is an essential natural resource used in all warehouse location for refrigeration,

personnel hygiene, sanitation, and landscape irrigation.

The figure in the chart represents five-year water utilization per cubic foot. In 2017, USCS utilized 201,360,767 gallons (762,150,503 liters) of water from municipal water sources. Although the total gallons of water consumption increased by 7%, gallons of water consumed per cubic feet decreased 1.3%, in 2017. USCS’s long term goal is to achieve a reduction in consumption per cubic foot on a year-on-basis.

The quantity of wastewater disposed of in 2017 was 91,259,791 gallons (345,418,309 liters), which represents a 10% reduction, compared to 2016. Approximately 45% of the water used by a refrigerated warehouses is evaporated into the air, or used for landscape irrigation, and not sent into municipal sewer facilities.

2013

2014

2015

2016

2017

199,845,029

194,202,575

174,510,518

187,462,389

201,360,767

0.96

0.91

0.73

0.75

0.74

Water Utilization

Year Gallons Gallons perCubic Foot

Water Utilization (gallons per cubic foot)

2013 2014 2015 2016 2017

0.96 0.910.73 0.75 0.74

Chart 6. Five-Year USCS Water Utilization

Table 10. Five-Year USCS Water Utilization

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24

The Company recycled approximately 7,095 gallons (26,855 liters) of waste oil in 2017. USCS continues the practice of replacing mineral-based refrigeration oil with synthetic refrigeration oil when new stocks of oil are purchased. Synthetic oil provides a longer cycle between oil changes due to its higher thermal viscosity.

WASTE OIL REDUCTION

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APPENDIX

19

26

APPENDIX

Environmental Statistics (US)

United States Cold Storage ReportEnvironmental statistics reference Unit 2017 2016 2015 2014 2013 Unit 2017 2016 2015 2014 2013

Revenue US$'m - - - - - - - - - -Average storage space for the year cu ft 273,476,000 251,266,000 239,612,000 213,185,000 208,020,000 - - - - -Number of Employees at year end No. 2,935 2,761 2,551 2,329 1,916 - - - - -

Electricity consumed kWh 286,549,512 283,747,831 272,460,078 243,871,808 248,585,560 kWh/Cu ft 1.05 1.13 1.14 1.14 1.20Less: electricity generated kWh 4,346,512 3,079,831 921,078 734,808 740,560 kWh/Cu ft 0.02 0.01 0.01 - 0.01Electricity purchased kWh 282,203,000 280,668,000 271,539,000 243,137,000 247,845,000 kWh/Cu ft 1.03 1.12 1.13 1.14 1.19

CO2 equivalent emissions by type

SCOPE 1 CO2 from industrial diesel + town gas 1,356,311 1,330,800 1,051,826 722,675 1,380,976 lb/Cu ft 0.005 0.005 0.004 0.003 0.007

SCOPE 1 from HFC - - - - - - - - - -

SCOPE 2: Electricity 246,340,349 278,970,790 274,828,713 257,550,771 275,579,175 lb/Cu ft 0.90 1.11 1.15 1.21 1.32

Total 247,696,660 280,301,590 275,880,539 258,273,447 276,960,151 lb/Cu ft 0.91 1.12 1.15 1.21 1.33

Water consumed

Potable page 23 gal 201,360,767 187,462,389 174,510,518 194,202,575 199,845,029 gal/Cu ft 0.74 0.75 0.73 0.91 0.96

Process wastewater disposed 1 page 23 gal 91,259,791 100,292,378 93,387,238 - - gal/Cu ft 0.33 0.40 0.39 - - Health and Safety statisticsLost Time Injury Rate (LTIR) page 16 #/200000 hrs 0.79 0.85 1.04 0.94 1.27 - - - - -Total Recordable Injury Rate (TRIR) page 16 #/200000 hrs 3.38 4.30 3.74 4.20 5.48 - - - - -

1 Sewer volumes for 2013 and 2014 are omitted as the information from some facilities was unavailable.

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Quantity for the year Quantity per unit of output

Business Volume Indicators

Energy and Fuel Use

page 20-22

Greenhouse Gas (GHG)

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Water

27


Revenue US$'m - - - - - - - - - -Average storage space for the year cu ft 273,476,000 251,266,000 239,612,000 213,185,000 208,020,000 - - - - -Number of Employees at year end No. 2,935 2,761 2,551 2,329 1,916 - - - - -

Electricity consumed kWh 286,549,512 283,747,831 272,460,078 243,871,808 248,585,560 kWh/Cu ft 1.05 1.13 1.14 1.14 1.20Less: electricity generated kWh 4,346,512 3,079,831 921,078 734,808 740,560 kWh/Cu ft 0.02 0.01 0.01 - 0.01Electricity purchased kWh 282,203,000 280,668,000 271,539,000 243,137,000 247,845,000 kWh/Cu ft 1.03 1.12 1.13 1.14 1.19


SCOPE 1 CO2 from industrial diesel + town gas 1,356,311 1,330,800 1,051,826 722,675 1,380,976 lb/Cu ft 0.005 0.005 0.004 0.003 0.007

SCOPE 1 from HFC - - - - - - - - - -

SCOPE 2: Electricity 246,340,349 278,970,790 274,828,713 257,550,771 275,579,175 lb/Cu ft 0.90 1.11 1.15 1.21 1.32

Total 247,696,660 280,301,590 275,880,539 258,273,447 276,960,151 lb/Cu ft 0.91 1.12 1.15 1.21 1.33

Water consumed

Potable page 23 gal 201,360,767 187,462,389 174,510,518 194,202,575 199,845,029 gal/Cu ft 0.74 0.75 0.73 0.91 0.96

Process wastewater disposed 1 page 23 gal 91,259,791 100,292,378 93,387,238 - - gal/Cu ft 0.33 0.40 0.39 - - Health and Safety statisticsLost Time Injury Rate (LTIR) page 16 #/200000 hrs 0.79 0.85 1.04 0.94 1.27 - - - - -Total Recordable Injury Rate (TRIR) page 16 #/200000 hrs 3.38 4.30 3.74 4.20 5.48 - - - - -


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Energy and Fuel Use

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page 20-21 lb

Water

28

APPENDIX


Revenue US$'m - - - - - - - - - -Average storage space for the year m3 7,743,993 7,115,060 6,785,045 6,036,717 5,890,461 - - - - -Number of Employees at year end No. 2,935 2,761 2,551 2,329 2,046 - - - - -

Electricity consumed GJ 1,031,578 1,021,491 980,185 877,959 894,920 GJ/m3 0.13 0.14 0.14 0.15 0.15Less: electricity generated GJ 15,647 11,087 2,645 2,666 2,678 GJ/m3 - - - 0.01 -Electricity purchased GJ 1,015,931 1,010,404 977,540 875,293 892,242 GJ/m3 0.13 0.14 0.14 0.14 0.15


SCOPE 1 CO2 from industrial diesel + town gas 678 665 328 626 421 t/000 m3 0.09 0.09 0.05 0.10 0.07

SCOPE 1 from HFC - - - - - - - - - -

SCOPE 2: Electricity 111,738 126,539 124,660 116,823 125,001 t/000 m3 14.43 17.78 18.37 19.35 21.22

Total 112,416 127,204 124,988 117,449 125,422 t/000 m3 14.52 17.88 18.42 19.46 21.29

Water consumed

Potable page 23 litres 762,150,503 709,622,336 660,592,113 756,988,747 755,007,614 l/m3 98.42 99.74 97.36 125.40 128.17Process wastewater disposed 1 page 23 litres 345,418,309 379,647,949 353,508,051 - - l/m3 44.60 53.36 52.10 - - Health and Safety statisticsLost Time Injury Rate (LTIR) page 16 #/200000 hrs 0.79 0.85 1.04 0.94 1.27 - - - - -Total Recordable Injury Rate (TRIR) page 16 #/200000 hrs 3.38 4.30 3.74 4.20 5.48 - - - - -


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Energy and Fuel Use

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page 20-21 tonnes

Water

Environmental Statistics (SI)

29


Revenue US$'m - - - - - - - - - -Average storage space for the year m3 7,743,993 7,115,060 6,785,045 6,036,717 5,890,461 - - - - -Number of Employees at year end No. 2,935 2,761 2,551 2,329 2,046 - - - - -

Electricity consumed GJ 1,031,578 1,021,491 980,185 877,959 894,920 GJ/m3 0.13 0.14 0.14 0.15 0.15Less: electricity generated GJ 15,647 11,087 2,645 2,666 2,678 GJ/m3 - - - 0.01 -Electricity purchased GJ 1,015,931 1,010,404 977,540 875,293 892,242 GJ/m3 0.13 0.14 0.14 0.14 0.15


SCOPE 1 CO2 from industrial diesel + town gas 678 665 328 626 421 t/000 m3 0.09 0.09 0.05 0.10 0.07

SCOPE 1 from HFC - - - - - - - - - -

SCOPE 2: Electricity 111,738 126,539 124,660 116,823 125,001 t/000 m3 14.43 17.78 18.37 19.35 21.22

Total 112,416 127,204 124,988 117,449 125,422 t/000 m3 14.52 17.88 18.42 19.46 21.29

Water consumed

Potable page 23 litres 762,150,503 709,622,336 660,592,113 756,988,747 755,007,614 l/m3 98.42 99.74 97.36 125.40 128.17Process wastewater disposed 1 page 23 litres 345,418,309 379,647,949 353,508,051 - - l/m3 44.60 53.36 52.10 - - Health and Safety statisticsLost Time Injury Rate (LTIR) page 16 #/200000 hrs 0.79 0.85 1.04 0.94 1.27 - - - - -Total Recordable Injury Rate (TRIR) page 16 #/200000 hrs 3.38 4.30 3.74 4.20 5.48 - - - - -


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Energy and Fuel Use

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page 20-21 tonnes

Water

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UNITED STATES COLD STORAGE

SUSTAINABLE DEVELOPMENTREPORT

2017

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USCS SUSTAINABLE DEVELOPMENT REPORT · 2018-12-07 · uscs is committed to the safety of our employees and the sustainable development of our business contents 01 foreword from the