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SAN MIGUEL CORPORATION
40 San Miguel Avenue, Mandaluyong City
1550 Metro Manila, Philippines
P.O.: Box 271 Manila Central Post Office
Telephone: (632) 632-3000

Environmental and Other Programs

HomeEnvironmental and Other Programs

Environmental and Other Programs

The environmental program of San Miguel Foundation Inc. covers the protection of land, water, and air. On a smaller scale, the Foundation conducts tree-planting projects on areas identified by different San Miguel Corporation (SMC) plants. Tree-planting projects are usually scheduled to coincide with plant celebrations.

The Foundation advocates the protection of coastal waters through its Coastal Resource Management, which engages in mangrove reforestation, artificial reef installation and regeneration of marine resources. Training on waste management and donation of trash bins through plant facilities are also conducted.

Corporations that go beyond regulatory compliance are rated favorably by most government offices. They are recognized for taking proactive measures in preventing negative environmental, health and safety impacts. Recycling and recovery are key factors which cut waste disposal costs. Reducing gas emissions that contribute to global climate change also lower costs. Pollution prevention is a discipline practiced in SMC plants which eliminates the generation of waste at the source.

SMC has pioneered a number of so-called trend-setting practices in its environment program. It was the fi rst Filipino company that published an Environmental Update in 1996, a report which was well received by the local business community and its stakeholders, as well as by business and environment groups abroad. The uniqueness of SMC’s environment program is its dual focus on both the external and internal environment. The Corporation not only takes care of the natural environment, but also of its own people and domain.

Emission Profiling

Corporate Technical Services-Environmental Management Group (CTS-EMG) has been conducting stack emission sampling in SMC-owned plants throughout the country since 1999 even before the promulgation of the Philippine Government’s Clean Air Act (RA 8749) in 2001. The sampling measures the quality of the fl ue gas emission of fuel combustion from boilers, furnaces, and power generator sets using the fully automated Napp-Baldwin Isokinetic sampler. Its fl ue gas analyzer, Testo350, a high-tech instrument, is also used to obtain quick results in air emission quality measurement.

The emission testing determines the compliance of a plant with the Clean Air Act. Plants which fail the test are directed to improve the quality of their emission to comply with the law. The testing carried out in the plants generates savings for the Corporation since it does not need to spend for the services of testing contractors. More importantly, it improves the performance and effi ciency of air pollution source equipment.

Task Force Hangin

Task Force Hangin is responsible for helping plants comply with the Clean Air Act. The word “hangin” means “air”. The Task Force is composed of representatives from CTS-EMG, CTS-Engineering, Corporate Planning and Development, and Corporate Purchasing Unit. It is tasked to pinpoint the best available fuel and control technology for the plants’ fuel burning equipment. It conducted numerous studies and came up with recommendations to utilize low sulfur fuel oil (LSFO) and scrubbers as the most efficient options for solving the problem, and maintain the level of sulfur content in its fuel to about 0.7%S. It also studied the range of fuel cost that determines when LSFO fuel is advantageous to use versus scrubbers, and when a plant needs to shift from LSFO to scrubbers.

The study enabled the Task Force to guide the plants in their compliance efforts. All SMC-owned plants are expected to institute the necessary actions congruent with the Clean Air Act. 

The use of electric heaters at the Mandaue Glass Plant’s furnace reduced the consumption of bunker fuel oil and the generation of combustion flue gas.

Biogas Recovery

SMC’s breweries in Mandaue, Davao and Polo, and Distileria Bago, Inc. treat their wastewater employing the anaerobic biological process. A by-product of this process is biogas, which contains methane gas. The simple molecular structure of methane gas makes it the cleanest gas in use today. The gas is recovered by the breweries and used as fuel for their boiler units. A total of 25,940,173.

EMS Trainor/Auditor

EMS Trainor/Auditor

The Environmental Management System (EMS or ISO 14001) represents a universal blueprint in managing the environmental impact of a plant or organization. Minimizing the environmental impact translates into savings through improved effi ciency and cost reduction, particularly in production.

The principal role of an EMS Auditor is to conduct audits in plants to ensure that they satisfy all the requirements of EMS certification. The auditors undergo training with local agencies or abroad. CTS-EMG, together with the plant manager, is responsible for the implementation of the EMS in SMC’s five breweries and Mandaue Packaging Products Plant.

CTS-EMG recommends that every facility be certified in the EMS, assuring adequate maintenance of the system through secondparty audit and surveillance visits.

EMS Implementation in SMPP

The EMS implementation at San Miguel Packaging Products Mandaue Plant resulted in significant savings worth P4,140,032 and minimized the use of virgin raw materials.

The plant utilizes the treated wastewater originating from the Mandaue Brewery for its production process. Part of the wastewater from the production process is recycled after undergoing oil-water separation. The water used at the cullet conveyor is also collected and reused. This scheme reduces the use of raw water and the volume of wastewater discharged to the environment.

There are other energy-reduction initiatives at the plant. An automatic shut-off controller is installed in the air-conditioning unit of the offices to cut down on power consumption. Transparent plastic roofing in the production section also improves illumination and saves energy.

The plant has a central segregation area for solid waste and used oil. Used oil collected from the oil-water separation process in wastewater and from the fuel combustion engines is reused as fuel for power generation at the power plant. Recyclable/reusable solid waste is sold to recyclers. In 2002, 12,777 metric tons of solid waste sold generated an income of P4,061,965.

Best Practices

Applied Color Labeling (ACL) Recovery – The previous method for dealing with misprints on bottle labels was water intensive due to the thorough washing of the bottles. To correct this, a cleaner and better technology was devised through ACL recovery by manually scraping the misprints, collecting and melting the paint, then adding it to virgin raw materials for producing labeling paint. The practice of this alternative method resulted in the reduction of raw water use and the amount of virgin materials for paint production. The end results are considerable savings.

Mandaue Glass Plant and San Miguel Yamamura Asia scrape Applied Color Label waste from misprinted glass bottles and mix it again with virgin material. San Miguel Yamamura Ball Corporation uses water-based paint for their two-piece aluminum cans, thus eliminating emission of volatile organic solvents. Rightpak’s printing cylinders employ mechanical etching instead of chemical etching to avoid generation of hazardous wastewater. Both San Miguel Rengo and Mincorr use lead-free printing ink for their cartons, making them safe to use and recycle.

Vermicomposting of Mandaue Brewery – Vermicomposting is a method of composting where cultured worms eat and partially digest the organic material in organic solid waste. The composting site is a roofed concrete housing in a dark environment conducive to worms. The resulting product or vermicompost is made up of partially digested waste and the excreta of worms. The vermicompost is applied to a soil conditioner, and is of a more superior quality than ordinary compost. The variety of worm Mandaue Brewery uses is the African Night Crawler.

Recycling Practices at Manila Plastics Plant – Recycling has been part of the Manila Plastics Plant’s regular operations for 30 years. From the very start, the plant was already recycling its in-house rejects in the form of plastic. The rejects are put through a grinding machine then added to virgin raw material at a ratio of 10% recycled crates and 90% virgin raw material. The practice reduces manufacturing cost and contributes to a cleaner environment.

Crates rendered defective through handling and usage are condemned, crushed, reduced to pellet size, and now recycled to make San Miguel Beer green crates.

The plant is on a continuous improvement journey as it studies and develops new technology for achieving the ideal shades of crate colors by adjusting pigment strength and formulation. It has gone up to 50% in the recycled material ratio to produce plastic pallets, the containers used to hold bottled beverages. It is looking into making productive use of plastic waste and trimmings with the goal that nothing goes to waste. Rightpak also recycles its waste laminates as components of plastic pallets.

Cullet Recovery at Glass Plants – Broken bottles or cullets are given a second life at the Mandaue Glass Plant, Manila Glass Plant, PrimePak, and SM Yamamura Asia Corporation, where glass bottles for beverages, liquor and other products are manufactured. In these glass plants, cullets are used as raw material for production. The cullets originate from in-house rejects and from plant-accredited glass buyers. The cullets collected undergo a segregation process. Amber is for Beer, green is for Sprite, and flint is for transparent bottles. The bottles are ground, mixed with virgin raw material, and fed into the furnace for melting.

Cullet recycling reduces the amount of virgin raw material used in production. Cullets contain silica, limestone, feldspar, and soda ash. The plants were able to cut down on their power consumption since cullets melt faster than raw materials. Cullet recycling also decreases the volume of glass bottles disposed to the environment.

SM Yamamura Asia Corporation also produces GLASSLite bottles that are lightweight, using less raw materials. These lightweight bottles have the same quality and strength as their heavier counterparts.

Waste Ink Reuse at San Miguel Rengo Packaging Corporation – In the printing of corrugated carton boxes, the ink formulated purposely for a specific requirement usually has leftovers, which can be used only for the same type of job. When reorders come far apart, the leftover ink is rendered useless and wasted. In March 2003, the plant developed a method to reformulate or reconstitute the leftover ink to approximate the same or a different color shade. Since mid-August 2003, the plant has reused 5,779 kg. of waste ink, and has saved P650,000 in substituted raw material cost. This helped the plant avoid expensive waste treatment and disposal costs.

Using Waste for Feeds – Distileria Bago, Inc. reuses its fermentation sludge for fertilizer. SMC breweries also have a recovery system where spent grain and bagasse from the production process are collected and used for fertilizer by B-Meg.

Coca-Cola’s “Mission P.E.T.” – Coca-Cola Bottlers Philippines Inc. established the groundwork for this project as early as 1999. The acronym PET stands for Pinoy Environment Team. The project promotes the recognition, collection, segregation and recovery of post-consumer PET containers and aluminum cans in support of CCBPI’s marketing of its products in one-way containers.

CCBPI set up recovery centers in selected supermarkets to rescue post-consumer PET soft drink bottles with monetary value to encourage consumers to participate in the collection. The project’s continuing implementation has proven to be a viable contribution towards the reduction of the solid waste volume. At the same time, collection of PET and aluminum containers provides livelihood opportunities, helps in the conservation of oil and bauxite resources, and communicates the value of proper waste management.

Project Blue Sky

SMC’s Polo Brewery pioneered the anti-smoke belching campaign within its premises by requiring all vehicles entering the plant to submit a certificate of compliance (COC). This initiative by a private company preceded the much lauded Project Blue Sky of the Department of Environment and Natural Resources’ Clean Air Campaign launched in 1994. Now more than 120 companies are implementing the “no COC, no entry” policy in their facilities, including SMC’s Mandaue and San Fernando Breweries. The project is spearheaded by the Center for Corporate Citizenship of the Philippine Business for Social Progress.

Environmental Forum

CTS-EMG organizes the quarterly Environmental Forum, which started in 1998. The forum is designed for SMC staff responsible for pollution management and control, particularly the Pollution Control Officer. Its purpose is to broaden knowledge of environmental laws, technology updates, waste management, and operation of waste treatment facilities.

Disaster Management

This project includes relief distribution to calamity stricken areas and rehabilitation activities such as provision of livelihood projects and repairs of school buildings and day care centers.

San Miguel Business Units play an active role as well as the employees who answer the call for fund raising campaigns.

Local Consumer Activities

These are Marketing and Sales projects to support their operation either in areas where SMC have a stronghold or in areas where they want to establish their position.