Sustainability Report 2010 - Finlays

Sustainability Report 2010

Finlays has now been doing business for 

over 260 years. Longevity of this degree is 

not conferred on those who seek short-term 

gain at the expense of lasting success.

Finlays Sustainability Report 2010 

Contents 

Section 1 – Introduction 

1.1 Foreword 5 

1.2 A year in review - key highlights 6 

1.3 Scope of report 8 

1.4 Sustainability commitments and supporting actions 10 

Section 2 – About Finlays 

2.1 Corporate profile 12 

2.2 Fast facts 18 

2.3 Management approach to sustainability 20 

Section 3 – Group Performance Review 2010 

3.1 Environment - Carbon, Energy, Water, Waste 22 

3.2 People - Sustainability Training, Occupational Health and Safety 26 

Section 4 – Business Unit Performance 

4.1 Tea Estates - Kenya and Sri Lanka 32 

4.2 Leaf Tea Trading and Extracts 40 

4.3 Finlay Beverages 48 

4.4 Finlays Colombo 53 

4.5 Horticulture – Overview, Horticulture UK and Europe, 56 

Horticulture Africa 

Section 5 – Governance 

5.1 Group Operating Companies 74 

5.2 Legal Form and Governance 75 

Appendices 

i) Swire Group Sustainable Development Policy 78 

ii) Performance Data 79 

This report has been printed on 100% recycled paper 

using environmentally friendly vegetable based inks. 

3

4 

Finlays Sustainability Report 2010

Introduction 

1.1 Foreword – Managing Director James Finlay Limited, Ron Mathison 

Finlays has now been doing business for over 260 years. 

Longevity of this degree is not conferred on those who seek 

short-term gain at the expense of lasting success. 

Today the Finlays Group is a diversified and vertically integrated agribusiness 

operating in many countries around the world. We have a long established 

reputation for integrity, for professionalism and for the quality of our products 

and services, but the common thread that pulls all our businesses together, the 

glue that binds the Group into one, is our enduring commitment to sustainability. 

As an agribusiness, we have a high 

level of dependence on the natural 

environment. We operate in businesses 

that are cyclical, with many ups and 

downs over the years, and most of 

our investments have relatively long 

pay-back periods. This requires us to 

take a long term view when investing 

and it is this long term view that is 

the sine qua non of truly sustainable 

businesses. We have a long heritage 

of taking good care of our people, of 

nurturing our land, of husbanding 

resources and supporting the 

communities in which we operate. 

We understand that sustainability 

is the only future we have and our 

commitment to sustainability is central 

to our long term business strategy. 

In this report we measure progress 

against the sustainability targets we 

have set ourselves over the last year 

and set new targets that build on the 

achievements so far for future years. 

Our key areas of focus remain water, 

carbon emissions, energy, waste and 

people, but there is an increasing 

focus on biodiversity and community 

engagement. Looking ahead, it is clear 

that the real challenge for the industries 

in which we operate lies in changing 

consumption behaviour. We need to 

get consumers to value the investments 

that are being made in energy, water 

and waste reduction instead of simply 

buying on price, range and convenience. 

Commoditisation isn’t necessarily 

the enemy of sustainability but often 

pricing pressures stand in the way of 

sustainable sourcing. 

Brands and Retailers will need to 

direct their considerable marketing 

influence towards changing consumer 

behaviour if we are to make really 

meaningful reductions in energy, 

water and waste as a collective society. 

Instead of the relentless push towards 

ever increasing consumption, we need 

to redirect that energy to encourage 

consumers to consume more 

responsibly and sustainably. 

In some of our operations we have not 

achieved as much as we had targeted, 

in other parts of our business we have 

made more progress than expected. 

Some of the year-on-year comparisons 

are distorted by a change in data 

definitions or by the addition of more 

reporting entities. Although to be 

expected in the first few years of any 

new reporting regime, this is an area 

in which we need to improve. We will 

endeavour to learn from our mistakes 

and improve on our successes. We will 

also need to adapt and evolve with 

our customers and changing markets 

to take advantage of new emerging 

technologies. Most importantly, we 

recognise that we still have a lot to learn 

and that both sobers and excites us. 

Sustainability, like so many things 

in life, is a journey, not a destination 

and we are in it for the long haul. 

Finlays Sustainability Report 2010 5

Introduction 

1.2 A year in review - key highlights 

6 

This is the second Finlays Sustainability Report. 

Many of our businesses have improved their performance against Group 

objectives. Year-on-year performance shows the greatest progress in 

‘Waste to Landfill’, where the Group has diverted significant volumes of 

waste to recovery or recycling processes. Carbon, energy, and water show 

only incremental change although some of the individual businesses 

have achieved very good results. Data, however, is just a part of the story; 

in some cases there are other indications of improvement and progress. 

Star performer 

Finlay Tea Solutions in Hull shows sustained 

incremental improvement in all areas of carbon, 

energy, water, waste, training and innovation. 

Food Retail Industry Challenge Fund 

(FRICH) 

In July 2008, the UK Government Department for 

International Development (DFID) announced the 

launch of a £2 million Food Retail Industry Challenge 

Fund (FRICH). The aim of this scheme is to develop 

innovative business models; bringing new and higher 

volumes of food products from Africa to the UK, whilst 

improving the livelihoods for producers across Africa. 

Finlay Beverages created a project consortium with the 

UK Co-operative Group, Africa Now! the international 

development organisation and the Co-operative 

College, and were successful in securing funding. 


Introduction 

1.2 A year in review - key highlights 

In this section we draw attention to some 

of the key achievements across the Group. 

Carbon 

Finlay Flowers UK and Finlays Fresh 

Produce UK have been piloting the 

alternative transportation of flowers 

and vegetables by sea freight from 

Kenya and South Africa. This will 

reduce carbon emissions associated 

with air freight. 

Energy 

Tea Estates in Kenya have been making 

significant progress in targeting 

energy independence. Through design 

innovation they are making sizeable 

reductions in the energy requirements 

of the tea factories. 

Two significant events are planned for 

2011: The installation of a leaf carrying 

ropeway to replace leaf collection 

vehicles, and the building of a biogas 

plant at the extracts factory. It is 

expected that the ropeway will further 

reduce our carbon output due to 

decreased vehicle use. 

The biogas plant will offer huge potential 

for using waste products from tea sites 

and flowers sites and will be an extra 

source of renewable energy, thereby 

increasing our self sufficiency. 

Water 

During the drought of 2009, Finlays 

Horticulture in Africa accelerated the 

farm development of closed-loop 

systems and continued to collaborate 

with stakeholders on developing the 

Watershed Management plans for Lake 

Naivasha. The watershed work has 

gained international prominence and 

will continue to inform us in our use 

and management of water across the 

Group. At Finlay Tea Solutions in Hull, 

the capture of caffeine from effluent 

during decaffeination will provide us 

with an additional income stream from 

a by-product traditionally regarded and 

treated as waste. 

Waste 

2010 has been a successful year across 

many of our operations, with a large 

reduction in Waste to Landfill. The 

sites face many different challenges. 

Horticulture Africa, for example, 

experienced a protracted period of 

non-shipment due to the volcanic ash 

cloud coming from Iceland in 2010. 

The different operating sites also have 

different opportunities. Tea Estates Sri 

Lanka, for example, have expanded the 

community waste programme to the 

Nuwara’ Eliya and Halli’ella locations. 

Education 

In Kenya, the tea estates have focused 

on making sustainability issues relevant 

and practical to the employees. 

Programmes include training on 

fuel usage, water, food security and 

kitchen gardens. Sponsored sports 

days, bus shelter signage, and practical 

workshops have created significant 

awareness among the workforce and 

within the estate community. 

Three other highlights from around the 

Group are worthy of particular mention: 

• The FRICH (Food Retail Industry 

Challenge Fund) project, jointly 

developed by Finlay Beverages and 

the Co-operative Group 

• Finlays Charitable Trust in Kericho 

• Supervisor training in Kenya 

Data reconciliation and verification 

We have had to change some of the 

data definitions to accommodate new 

measurement capabilities. Any changes 

in previously reported data arising from 

the use of varying data conventions 

across the Group are shown in the 

Appendix ii) Performance Data. 

In 2011, our internal audit function has 

been subjecting Group sustainability 

data to checks during routine 

assessments of sites. The audit process 

will provide assurance regarding the 

validity of the data and like-for-like 

reporting across the Group. In future, 

we may consider an external audit to 

supplement this process. 


Introduction 

1.3 Scope of Report 

8 

Scope 

The report covers all the main reporting units in Finlays 

and records performance against two sets of objectives: 

i. Group Objectives - Those that apply to all our businesses 

ii. Business Unit Objectives - Selected by the Business Unit teams 

to reflect their main challenges. Details can be found within the 

individual Business Unit reports. 


Introduction 

1.3 Scope of Report 

In the first two reporting 

years we have been 

recording education in 

sustainability as we 

build awareness and 

understanding in the 

various businesses across 

the Group. 

Group Objectives 

• Carbon 

Undertake to be carbon restorative 

and minimise emissions of other 

greenhouse gases 

• Energy 

Continuously improve our 

resource management 

• Water 

Practise excellence in our 

management of water resources 

• Wa s te 

Continuously improve our 

resource management and 

reduce our waste generation 

We also report under the Group 

Objectives on Occupational Health 

& Safety and the financial impact of 

our business on the communities 

in which we operate. In the first two 

reporting years we have been recording 

education in sustainability as we drive 

awareness and understanding in the 

various businesses across the Group. 

This will be incorporated under the 

business training objectives in 2011 as 

part of developing the business skills 

of our employees. 

Business Unit Objectives 

Four key areas have been selected 

for specific reports in 2010: 

• Tea Estates Kenya 

‘Catalysts for the Community’ 

• Horticulture Africa 

‘Watershed Management’ 

• Horticulture Africa and 

Tea Estates Kenya 

‘Supervisor training, dignity, 

and respect in the workplace’ 

• Fresh Produce and 


‘Adopting a leadership role in supplier 

and smallholder development’ 

Methodology 

Measurement of metrics is based 

on Global Reporting Initiative (GRI) 

guidelines, and carbon is based on 

WRI/WBCSD GHG protocols. We have 

taken 2009 as the baseline against 

which we measure performance 

against medium term targets set for 

achievement by 2014. It should be 

noted that the entire Group will be 

reporting consistently by the end of 

2011 and that any Business Unit for 

which data may not be available for 

2009 will also form part of that report. 

New inclusions 

Reporting for the first time: 

• Tea Trading Mombasa 

Now reporting on all Group metrics 

for 2009 and 2010 

• Taikoo Flowers & Young Plants 

Reporting in full for 2010 

• Omniflora 

Current exclusions 

• The trading offices in Malawi, 

Indonesia and Dubai only report 

on Carbon and Occupational 

Health & Safety 

• James Finlay Pakistan 

To be included in the report from 2011 

• Finlay Flowers BV 

Included in Carbon, and Occupational 

Health & Safety, for 2010; will be 

included in full from 2011 


Introduction 

1.4 Sustainability commitments and supporting actions 

10 

Delivering a sustainable future 

Business 

We will address social, political and environmental issues by 

demonstrating that it is more financially rewarding to be sustainable. 

• Undertake regular business performance reviews, taking action to increase 

the long-term sustainability of our business portfolio over time; 

• Explore new business opportunities in keeping with our sustainability goals; 

• Maintain sufficient diversity in our markets and our products to 

ensure resilience; 

• Make the true cost of production (economic, environmental and social) 

clear, ensuring it is reflected in the price of the product over time; 

• Communicate openly with our supply chain, local communities, pressure 

groups and the wider public about the case for sustainable development; 

• Behave with honesty and integrity. 

Environment 

We aim to have ‘zero net impact’ as our minimum environmental 

standard. Overall we commit to making a positive contribution 

to environmental recovery and resilience. 

• Develop a comprehensive understanding of the likely impact of climate 

change and implement appropriate adaptation measures for our 

operations and the communities in which we operate; 

• Undertake to be carbon restorative and to minimise emission of other 

greenhouse gases; 

• Continuously improve our resource management, practise excellence 

in our management of water resources and reduce our waste generation; 

reduce and eliminate the use and release of pollutants wherever possible; 

• Lead the way in community watershed management; 

• Protect and enhance biodiversity in the countries in which we operate; 

• Demonstrate and promote sustainable pest and disease management, 

eliminating any negative impact on the environment; 

• Maintain soil health through sustainable agricultural practices and avoid 

soil degradation by taking measures to prevent contamination and erosion; 

• Demonstrate excellence in forestry management. 


Introduction 

1.4 Sustainability commitments and supporting actions 

People 

We strive to make Finlays an 

enjoyable and rewarding place to 

work, an organisation that nurtures 

and develops its people for the 

benefit of the individual, the 

company, and the community. 

• Employ our workforce according 

to universal international standards 

and treat employees fairly, with 

dignity and respect; 

• Protect the health of our workforce 

and promote healthier lifestyles; 

• Ensure that all employees, and their 

resident dependents, have access to 

food and shelter, sanitation, clean 

water and primary healthcare; 

• Develop our employees’ lives 

and business skills and empower 

employees to make their voices 

heard through democratic worker 

representative bodies; 

• Demonstrate leadership and equal 

opportunity employment, thriving 

as an ethnically and culturally diverse 

company; encourage and facilitate 

female representation and the 

contribution of women to the business; 

• Reward our employees for achieving 

the company’s business objectives; 

• Educate our employees on 

the values and principles of 

sustainable development. 

Communities and Partners 

We will take an active leadership role 

in dealing with sustainability issues, 

and share our knowledge for the 

benefit of our suppliers, communities 

and society in general. 

• A collaborative approach to 

addressing sustainability challenges 

and policy, engaging with growers, 

suppliers, customers, government, 

NGOs, union and industry bodies; 

• Adopt a leadership role in supplier 

and smallholder development; 

demonstrating and providing best 

practice for our suppliers in crop 

selection, sustainable farming 

techniques, production processes 

and environmental management; 

• Make sure that we become a 

catalyst for positive change in 

the communities we serve. 

We develop our employees’ lives and 

business skills and empower employees 

to make their voices heard through 

democratic worker representative bodies. 

Products 

We will develop and provide sustainable 

products and services that contribute 

positively to the health and well-being 

of society. 

• Reduce the lifecycle impact of 

each of our products and ensure 

sustainability is built into our New 

Product Development processes; 

• Provide research and development 

capability to explore innovative, 

sustainable processes and products; 

• Deploy sustainable processing 

technologies to increase product 

efficiency and competitiveness; 

• Package our products in the most 

sustainable way possible using 

sustainable packaging innovation; 

• Transport our goods in the 

most efficient and sustainable 

manner possible; 

• Be proactive in supporting an 

equitable and ethical trading 

environment for our products. 


About Finlays 

2.1 Corporate profile 

12 

Founded in Glasgow, Scotland, in 1750, Finlays began as a trader and 

manufacturer of cotton before expanding into tea in the 19th century, 

following the collapse of the British cotton industry. Over the years, 

Finlays has diversified to reduce its reliance on tea plantations. 

Diversification into horticulture began around 30 years ago and, 

with the acquisition of Flamingo (now Finlays Horticulture) in 2007, 

Finlays is now one of the leading players in the UK cut flower and 

fresh produce industry. 

Over 39,000 employees work on flower 

farms in Kenya, South Africa and China, 

and tea plantations in Kenya and Sri Lanka. 

Our primary markets are in the UK, USA, 

Asia and, increasingly, continental Europe. 




Tea, coffee, rubber and timber 

Our Tea Estates in Kenya and Sri 

Lanka cover more than 39,000 acres, 

producing 46 million kilos of black 

tea annually. We are one of the only 

tea companies in the world to be 

involved in every aspect of the complex 

process of growing, trading, blending, 

extracting, packaging and distributing 

tea. Finlays is the largest supplier of 

Fairtrade tea and coffee in the world. 

Finlays is also the largest independent 

tea trader in the world, trading more 

than 100 million kilos of tea each year. 

We are the world’s largest supplier of 

quality tea extracts, including instant 

teas and aromas, dealing with the 

world’s top beverages companies. 

Our beverage packing businesses in 

the UK and Sri Lanka source, blend and 

package private label tea and coffee for 

customers in the UK, the Middle East 

and Japan. 

As well as managing 15,000 acres of 

timber in Kenya and Sri Lanka, the 

Company also produces 1 million kilos 

of rubber latex annually in Sri Lanka, 

220,000 stm 3 * of Eucalyptus in Kenya 

and 33,000 stm 3 of Cyprus per year 

on rubber estates in Kenya. 

*Stacked metres cubed 

Flowers and fresh produce 

Finlays Horticulture is involved in 

the growing, processing, packaging, 

marketing and distribution of cut 

flowers and premium prepared fresh 

vegetables. Finlays Horticulture is a 

supplier to most of the UK’s leading 

retailers, including Marks & Spencer, 

Tesco, Sainsbury’s, the Co-operative, 

Morrisons, Asda and Next. 

The Company has major farming 

interests in Kenya and South Africa 

through its wholly owned subsidiaries, 

Finlays Horticulture Kenya and Finlays 

Horticulture South Africa. We are the 

largest vertically integrated added value 

horticultural producer and exporter of 

fresh produce and flowers from 

Africa to the EU. 

Finlays markets and sells flowers in 

continental Europe through Omniflora, 

a wholly owned subsidiary based in 

Frankfurt. Omniflora supplies fresh 

flowers to major retail multiples 

in Germany, Austria, Switzerland, 

Norway and Luxembourg. Omniflora 

is committed to supplying ethical 

flowers, sourced from socially and 

environmentally responsible growers. 

The company trades almost exclusively 

in Fairtrade accredited roses sourced 

from FLO certified farms. 

Established in 2007, Taikoo Flowers, 

located in Kunming, China, is a wholly 

owned subsidiary of Finlays. This cut 

flower production facility supplies high 

quality carnations principally to the 

Japanese market. Taikoo Flowers has 

established a joint venture with Hilverda 

Kooij to develop state-of-the-art plant 

breeding and propagation programmes. 

Finlays and its subsidiaries are well experienced in 

the environmental and social issues that come with 

the cultivation of tea, timber, flowers, vegetables 

and other such crops. 

Other activities 

Our subsidiary, Dudutech, produces 

large quantities of biological control 

organisms to control common pests 

and diseases at its insect production 

facilities in Naivasha, Kenya. These 

beneficial insects have helped Kenyan 

growers to reduce their dependence 

on synthetic pesticides by almost 

70% since 2004. Dudutech also 

provides training to ensure that the 

benefits are experienced throughout 

the supply chain. 

Another Finlays subsidiary, Skytrain, is 

a dedicated cargo-handling and freightforwarding 

agency, with facilities at Jomo 

Kenyatta International Airport in Nairobi, 

handling sea and air freight export of 

fresh produce from East Africa. 

James Finlay has a controlling interest 

in Finlays Colombo, a Sri Lankan based 

business quoted on the Colombo 

Stock Exchange. Its activities include 

warehousing of tea, blending and 

packaging tea for export, insurance 

broking, and agencies representing a 

number of international businesses 

trading in Sri Lanka, including Cathay 

Pacific, for whom it acts as General 

Sales Agent. Finlays Colombo also 

owns Sri Lanka’s largest and most 

technologically advanced cold storage 

facility, together with a factory which 

manufactures green tea. 




14 

Our search for alternative renewable 

energy sources remains a strategic 

imperative and Finlays views anaerobic 

digestion of biomass as a potential 

source of clean, renewable energy. 

Sustainability through innovation 

Finlays has long been committed to 

using renewable energy sources. We use 

hydroelectric power and continuously 

replant our own Eucalyptus forests to 

generate timber to fuel our boilers on 

our tea estates. 

Our search for alternative renewable 

energy sources remains a strategic 

imperative and Finlays views anaerobic 

digestion of biomass as a potential 

source of clean, renewable energy. 

Anaerobic digestion is the process by 

which micro-organisms break down 

biodegradable material, working in 

a similar way to a compost heap. 

The process produces methane 

gas, which can be used to generate 

thermal or electrical energy. Finlays’ 

researchers and engineers in Kenya 

are experimenting with flower, tea and 

human waste combinations to create 

the optimum conditions for generating 

methane gas, which can be used as a 

fuel in gas engines. The nutrient rich 

leftovers can be reused as fertiliser 

on the farms and estates. 

Supply chain traceability 

Finlays is an industry leader in bringing 

Fairtrade flowers, tea and coffee to 

market in the United Kingdom, and is 

one of few companies able to provide 

complete supply chain traceability of its 

products. By having a fully integrated 

business we gain the benefits of greater 

control and a deeper understanding of 

the supply chain. 

People 

We always do our best to look after 

our people, the environment and the 

communities in which we operate. 

We provide housing, schooling and 

medical facilities for many of our 

employees who live and work on the 

flower farms and tea plantations. 

As a result, we have achieved numerous 

awards and accreditations, including 

Fairtrade and Rainforest Alliance. 

Working with customers 

We are committed to working with 

customers to ensure that we maintain 

the highest quality and standards in 

our operations. 

Our producer sites are subject to a 

range of ethical and environmental 

audits such as Fairtrade Labelling 

Organisation-Cert (FLO-Cert), Kenya 

Flower Council (KFC) – Gold Standard, 

EurepGAP, which develops standards 

for the global certification of good 

agricultural practices, and the 

Rainforest Alliance audit, as well as 

specific customer related audits. 

Finlays Horticulture is an active 

member of the Ethical Trading Initiative 

(ETI), which promotes international 

labour standards in the supply chain. 

On product stewardship, our sites 

conform to GAP and GMP where 

relevant and have Hazard Analysis 

Critical Control Point (HACCP) systems 

to ensure high standards of food safety. 

We are active members of industry 

regulatory bodies advising on product 

standards and promoting product safety. 




Compliance with Global 

Certification Standards 

Fairtrade 

We are an active supporter of Fairtrade, with 

registered producers in flowers, fresh produce and 

tea. Our trading, processing and packing businesses 

are registered licensees; giving our customers and 

consumers a complete Fairtrade supply chain. 

All producers of Fairtrade products are inspected and 

certified by FLO-cert. They receive a minimum price to 

cover the cost of sustainable production as well as an 

extra premium that is invested in social or economic 

development projects. 

Rainforest Alliance 

This global programme is run by a coalition of 

non-profit organisations committed to conservation 

and social justice. It currently certifies over 20 

different crops, including our tea in Sri Lanka. 

For consumers, the ‘Rainforest Alliance Certified’ 

seal guarantees that a product comes from sustainably 

managed farms or forests. 

(Global GAP, BRC, BOPP, SMETA, MPS are listed in the relevant 

Business Unit reports). 




16 

Business summary 

• Production of black and green tea (cultivation and processing) 

· Trading of tea 

· Tea warehousing 

· Production of tea extracts and aromas 

· Growing of timber, rubber, spices and other crops 

· Cultivation of cut flowers and fresh produce 

· Sourcing and packaging of cut flowers, fresh produce, tea and coffee 

· Integrated pest management 

· Temperature controlled logistics 

· Environmental services (timber preservation, pest control, clinical waste 

management and healthcare) 

· Insurance brokering and marine cargo surveying 

· Airline GSA and other agencies 

Rebranding from Flamingo to Finlays 

In 2007, Finlays acquired Flamingo and its subsidiaries as an extension 

of its existing horticultural activities. 

In June 2011 Flamingo has been rebranded and renamed as Finlays and 

is now trading as the Group’s Horticulture Division. This change has been 

made to simplify and standardize branding for the benefit of our customers. 

The new company names will be used in this report. 

Former and new company names 

Current name New name 

Flamingo Holdings Ltd Finlays Horticulture Holdings Ltd 

Homegrown (Kenya) Ltd Finlays Horticulture Kenya Ltd 

Homegrown (Tanzania) Ltd Finlays Horticulture Tanzania Ltd 

Flamingo Flowers (Pty) Ltd Finlays Horticulture South Africa (Pty) Ltd 

Flamingo (UK) Ltd Finlays Fresh Produce UK Ltd 

Flamingo Flowers BV Finlay Flowers BV 

Flamingo Flowers Ltd Finlay Flowers UK Ltd 




Group structure 

The Group is made up out of eight different businesses encompassing Tea Estates, 

Leaf Tea, Tea Extracts, Beverage Packing, Flowers, Fresh Produce, Logistics & Services 

and Forestry & Rubber. Each business has a number of Business Units operating in 

various countries around the world: 

Tea Estates 

Our tea estates are in 

Kenya and Sri Lanka 

Beverage Packing 

Expertise in sourcing, 

blending and packing in 

both the UK and Sri Lanka 

Leaf Tea 

We are black and green tea 

suppliers and manufacturers 

of decaffeinated tea 

Tea Extracts 

We’re the world’s largest 

supplier of quality 

tea extracts 

Fresh Produce 

We grow a wide variety 

of fresh vegetables 

Logistics & Services 

We have logistics 

businesses in Sri Lanka 

and Pakistan 

Flowers 

We grow roses, carnations, 

chrysanthemums and lilies 

Rubber & Forestry 

We own rubber and 

forestry plantations 



2.2 Fast Facts 2011 

18 

Finlays in numbers 

Largest independent tea trader and largest packer of 

Fairtrade tea and Fairtrade roast and ground coffee 

in the world. Founded in 1750, Finlays has a total land 

holding of 58,000 acres. 



2.2 Fast Facts 

Tea 

Produces 46 million kg per annum from 37,000 acres in Kenya and Sri Lanka. 

Trades over 100 million kg from offices in the UK, Kenya, Sri Lanka, UAE, Malawi, Vietnam, Indonesia, 

Mainland China and the USA; blends and packs over 17 million kg per annum. 

Manufactures and trades over 6 million kg of extracts per annum from facilities in Kenya, Chile 

and Mainland China. Trades over 4 million kg of decaffeinated tea from plants in UK and India. 

Coffee 

Blends and packs 2.5 million kg of coffee per annum. 

Flowers 

800 acres under greenhouse or polytunnel in Kenya, South Africa and Mainland China 

producing over 325 million stems per annum for the UK, continental Europe and Japan. 

Sourcing and processes 836 million stems in Kenya, UK, Mainland China and Germany. 

One of the world’s largest producers and packers of Fairtrade roses and lilies. 

Fresh Produce 

Grows and processes 7 million kg per annum on 220 acres and sources 29 million kg per annum. 

First supplier of Fairtrade vegetables into the UK. 

Insects (Integrated Pest Management) 

Dudutech produces large quantities of biological control organisms to control common pests and diseases. 

22 acres of insect production facilities in Kenya yield 580 million insects a month. 

Rubber 

4,000 acres in Sri Lanka producing 1 million kg rubber latex per annum. 

Timber 

15,000 acres in Kenya and Sri Lanka producing 220,000 sm 3 of Eucalyptus and 33,000 sm 3 Cyprus. 

Coconuts 

Grows 500,000 nuts per annum in Sri Lanka. 

Cold Storage 

Operates a 2.2 million cubic-foot facility in Sri Lanka. 



2.3 Management approach to sustainability 

20 

Each Finlays Business Unit faces different challenges 

depending on its location, products or stakeholders. 

Our management approach is one of ownership 

by senior management of each business whereby 

sustainability is embedded within the responsibility 

of the Business Unit. 

The Head Office role is to provide oversight, facilitation and guidance 

but it is the responsibility of each Business Unit to prioritise objectives 

relevant to its business. Sustainability objectives are aligned with business 

objectives and owned by the relevant function in those businesses, 

with clear responsibilities and measurable targets. This is backed up by 

accountability and transparency through public reporting of performance. 

Essentially, we are committed to sustainability as a total business 

concept, driven by the senior management team within each Business 

Unit, supported and guided by Head Office. 

The targets we set are designed to 

balance specific business priorities with 

a common approach across the Group. 



2.3 Management approach to sustainability 

Group Sustainability Committee 

A Group Sustainability Committee 

was set up in early 2009 to ensure 

that we focus appropriate expertise 

on emerging issues on a regular basis. 

The Committee also monitors the 

Group’s response to dealing with 

sustainability challenges and keeps 

abreast of external factors impacting 

our strategy. It has the remit to set 

targets, review and monitor our 

performance and, where necessary, 

to commission Group sustainability 

projects addressing specific issues. 

It is also responsible for promoting and 

spreading best practice from outside 

or within the organisation, recognising 

notable achievements and reviewing 

participation in accreditation and 

certification schemes. 

The Group has many experts in water, 

energy, waste, certification schemes, 

labour relations and packaging and 

we are trying to use our subject 

matter experts as thought leaders 

to facilitate the spread of knowledge 

across the Group. 

The targets we set are designed to 

balance specific business priorities 

with a common approach across the 

Group. Sustainability Managers are now 

in place in each of the businesses, in 

full or part time roles, reporting to the 

Managing Director of each business. 

Generally acting in an advisory capacity, 

they are charged with objectives specific 

to the business in which they operate, 

and many of them have specialist skills 

pertinent to these objectives. 

Increasingly, sustainability metrics are 

being built into individual personal 

performance reviews as part of their 

Key Performance Indicators (KPI’s). 

Objectives and measurement 

In a business characterised by diversified 

activities, setting common sustainability 

targets can be a complex process. 

Some of the medium term targets 

for incremental improvement are more 

easily achievable for some businesses 

than for others. 

To demonstrate our performance, we 

have provided data on total usage and 

carbon footprint as well as normalised 

data. Whilst we understand that carbon 

footprints have to reduce in total, 

normalised data in the short term helps 

the business demonstrate progress in 

efficiency and cost reduction as well 

as efficiencies driven purely by volume. 

Some areas are crucial to the long 

term viability within some businesses. 

Where this is the case, the Business 

Unit has taken a leadership position 

in the Group. Examples are energy 

use in Tea Estates and water use by 

Horticulture in Kenya. 

In a business characterised by diversified 

activities, setting common sustainability 

targets can be a complex process. 


Group Performance Review 2010 

3.1 Environment 

22 

Energy 

Medium term targets to be achieved by 2014 

Reduction of 10% per unit of production on 2009 base year 

Increase of 10% renewable energy used over non-renewable energy 

Overall performance 

Overall there was a 13% increase in total 

energy used due primarily to the increased 

use of renewable firewood on the tea estates. 

This was due to unusually high rainfall in 

2010. We expect the energy figures for Kericho 

and renewable contribution to drop towards 

2009 levels for 2011. The increased rainfall 

has, however, assisted in the contribution 

of indirect renewables and increased the 

contribution of our own hydroelectric 

power in Kericho. 

2010 Highlights 


Total energy use down by 12% 

direct non-renewable down by 13% 

• Tea Estates 

Direct non-renewable energy use down by 13% 

indirect non - renewable down by 20% 

• Finlay Beverages 

Indirect Total Energy use down by 1% 

indirect down by 10% 

• Finlays Colombo 

Total energy use down by 5% 

Finlays Group energy usage 

GJ thousands 

2,500 

2,000 

1,500 

1000 

500 

0 

2007 2008 2009 2010 

Indirect 

non- renewable* 

Direct 

non-renewable 

Indirect 

renewable 

Direct 

non-renewable* 

Indirect 

non-renewable 

Direct 

renewable 

*new reporting unit 




Carbon 


Scope 1 15% reduction on 2009 

Scope 2 15% reduction on 2009 


Overall there has been an 8% reduction in 

total carbon emissions. Most of this has been 

achieved by pursuing alternative Scope 3 

transport options in the form of increased 

sea, road and rail freight as opposed to air 

freight. However, there was a 1% increase in 

Scope 1 and a 3% increase in Scope 2 emissions. 

Of note, Finlays Fresh Produce UK reports 

a 21% reduction in overall carbon, largely 

through the reduction in air transport and 

greater use of sea freight. 

The move to renewables in the energy sector 

will assist significantly in reducing Scope 2 

in the future. For the European horticultural 

businesses, there is a focus on using 

third-party transport to switch from air 

and road to sea freight and rail freight. 


• Tea Estates 

Overall reduction of 18% 



Scope 2 reduction of 10% 


• Finlays Fresh Produce UK 



• Finlays Colombo 



• Omniflora 

Per unit reduction of 12.5% 

Finlays Group carbon footprint 

300,000 

250,000 

200,000 

150,000 

100,000 

50,000 

Scope 3* 

Scope 2* 

Scope 1* 

Scope 3 

Scope 2 

Scope 1 


Finlays Sustainability Report 2010 23 

Tonnes CO 2 e 

0 

2007 2008 2009 2010



24 

Water 


15% reduction in water usage 

0% untreated water discharge to open ground 

20% of water to be recycled or reused 


The apparent increase in net water 

consumption is due to the addition of more 

reporting units in the Group. Horticulture 

Kenya continues to demonstrate leadership 

across the Group with an integrated water 

management system and innovative approach. 

The Water performance is slightly skewed 

by Extracts 1 figures for 2010, which include 

water going into site for cooling purposes at 

Mara Mara, and then returned to source after 

heat is reduced. No change takes place to the 

water during this process, but volumes used 

uniquely for cooling are unknown. 

In 2011, we will be upgrading effluent 

treatment plants and wetlands to eliminate 

the discharge of water to open ground. 



increase of 30% in recycled water 


overall decrease of 32% in water used 

• Finlays in Hull 

overall decrease of 26% in water used 

1 1,338,099 m 3 (estimated) was used for cooling of the Mara Mara site; water was returned to 

source after cooling. No processing of water took place. Mara Mara closed December 2010. 

Finlays Group water usage 

m 3 Thousands 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

2007 2008 2009 2010 

Net water * 

Net water 

Rainwater as component 

of net water 

Total water reused 


One of our challenges is to reduce the amount of water at 

other units, specifically to demonstrate that extra usage of 

water impacts on energy and extraction costs. In 2011 we 

will be conducting lifecycle analysis of tea and horticulture 

to inform stakeholders and to highlight areas for intervention. 




Waste 

Medium term Target to be achieved by 2014 

0% Waste to Landfill 


Waste numbers continue to rise primarily due 

to the inclusion of more data across the Group. 

2010 includes data from Omniflora in Germany; 

who recorded 0% to landfill for 2010. 

Most of the Waste to Landfill is now being 

recovered through composting. The high 

numbers of recovered waste also reflect the 

challenges Horticulture Africa had earlier in 

the year with the closure of European airspace 

due to volcanic ash disruption. 

In 2010 there was a 51% reduction in Waste to 

Landfill recorded across the Group – a reduction 

of 1,790 tonnes of waste. 

The success of the biogas pilot in 2010 at 

Chomogonday, in Kericho, has resulted in the 

first unit to be installed using waste materials. 

All units have now established waste streams 

and have put in plans to reduce their waste 

and to target further reductions. Significant 

challenges remain. Amongst these are 

the need to strengthen the controls and 

management of green waste for recovery, and 

to identify ways of separating domestic and 

industrial waste data on the tea estates. 


• Finlay Flowers Europe 

0% Waste to Landfill 


88% reduction to Landfill 

• Finlays Fresh Produce UK 

54% reduction to landfill 


16% reduction to landfill 

Finlays Group waste 

60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

Waste to landfill* 

Waste recovered* 

Waste reused* Waste recycled* 

Waste to landfill 

Waste recycled 

Waste recovered 

Waste reused 



Tonnes of waste 

0 

2007 2008 2009 2010 

Finlays Group waste to landfill 

Tonnes 

2500 

2000 

1500 

1000 

500 

0 

2007 2008 2009 2010 

Finlay Beverages Flowers UK & 

Omniflora 

Horticulture Africa Tea Estates 

Extracts 

Fresh Produce UK 

Hull


3.2 People 

26 

Sustainability training, 

Occupational Health & Safety 

Sustainability training is a priority in our employee 

training and development programmes. 

The goal is to embed sustainable practices in all 

aspects of our businesses. 

Highlights of 2010 activity 

• Management conferences 

• Community awareness programme 

• Employee conferences and workshops 

• Sports days with sustainability messages 

• Posters/screensavers 

• Articles in Finlays magazine 



3.2 People 

Management Conferences at Finlays 

In 2010, we focussed on rearticulating the company strategy to make 

sure that all Group employees are working towards the same goals. 

In order to drive awareness we held three management conferences in the UK, 

Kenya and Sri Lanka to talk about our strategy and 3-year business plan. 

Routes to Grow 

The ‘Routes to Grow’ programme 

is central to our training and 

development strategy. 

Its core objective is to create a 

continuous pipeline of talented 

managers with the experience and 

competencies to manage and lead our 

business, now and into the future. 

Building on strengths 

The purpose of ‘Routes to Grow’ is to 

ensure that, where possible, key roles 

and succession gaps can be covered 

by internal talent. We look at future 

management succession gaps, identify 

potential internal successors where 

they exist, and determine how long 

before they are ready to take on more 

senior positions. Nominated individuals 

undertake a rigorous and objective 

competency assessment process, 

externally facilitated. The process 

culminates in individual development 

plans to build on strengths, address 

weaknesses and provide clarity on 

possible career routes. 

There are currently some 100 people 

on the programme, from across the 

Finlays Group. 

Whilst training courses and coaching 

make a valuable contribution to an 

individual’s learning and development, 

one of the most effective ways to build 

experience is through assignments 

to other businesses or roles. ‘Routes 

to Grow’ provides a fair and objective 

structure to facilitate such moves. 

The benefits include: risk reduction 

in the business by establishing 

a ‘pipeline’ of future managers; 

retention of our management talent; 

reductions in knowledge loss and 

reductions in recruitment costs. For 

the individuals involved, the benefits 

include a broadening of horizons and 

the opportunity to experience a totally 

different Finlays business. 

‘Routes to Grow’ has made a promising 

start over the last two years and will be 

increasingly implemented as one of our 

methodologies in ensuring we have a 

long term sustainable business. 

Ethical Trading Initiative 

(ETI) Supervisor Training 

The ETI Supervisor Training was 

rolled out across Finlays Kenyan 

operations in 2010, with the goal 

of training all 400 supervisors. 


27


3.2 People 

28 

Improving worker welfare 

The ETI developed the Supervisor Training Programme to help companies 

address issues of bullying, discrimination and sexual harassment in the work 

place. Such issues are commonly encountered at supervisor level, but can be 

difficult for both management and external ethical audits to detect. 

The scheme promotes awareness of worker rights, and equality of treatment 

in the workplace, by training those in supervisory roles who are most able to 

influence and improve worker welfare. 

Finlays was involved with the ETI in the pilot study, undertaking trial courses 

on our farms. Through this study, ETI’s impact assessment identified the 

following improvements: 

• Fairer treatment of workers with regard to task allocations 

• Greater understanding amongst workers of their rights concerning discrimination 

and harassment and available recourse, including better communication from 

supervisors and managers, in cases of abuse 

• Improved workplace environment as a result of the supervisors’ better 

understanding of their management roles and responsibilities in addressing 

discrimination and sexual harassment issues 

• More respect in the workplace 

Ongoing benefits 

We anticipate that the training will provide an effective vehicle to engage with 

management and supervisors, those who are most influential in shaping the 

wider treatment of workers in their charge. 

The workers themselves will gain a greater understanding of their rights and 

how to make sure these are observed. Peripheral benefits will include improved 

productivity and quality of output, and increased staff retention and attendance. 

All supervisors are due to be trained by July 2011. 



3.2 People 

Our commitment to people is a central commitment in 

our sustainability strategy: 

“We strive to make Finlays an enjoyable and rewarding 

place to work, an organisation that nurtures and develops 

its people for the benefit of the individual, the company, 

and the community.” 



3.2 People 

30 

Occupational Health and Safety 

Our businesses have always given a high priority to Health and Safety and 

we expect them to comply both with local labour laws and with internationally 

recognised standards. 

Whilst Health and Safety is ultimately 

the responsibility of all our employees, 

management has a key role to play in 

ensuring that businesses have adopted 

safe working practices. 

Each business has put in place 

programmes relevant to its particular 

circumstances. Such programmes 

include training, risk assessments, 

audits, inspections, system checks, 

accident and incident reporting and 

pro-active measures designed to 

reduce the likelihood of accidents. 

A Group Health & Safety Management 

System incorporates standardised 

reporting requirements which enable 

monitoring of health and safety 

performance within each business 

and at Group level. This is currently 

under review to ensure that it correctly 

reflects the experience gained since it 

was first introduced over two years ago. 

Each business has a dedicated resource 

responsible for implementing policy 

and, in most cases, a committee tasked 

with reviewing its implementation. 

All management board meetings 

receive a report on Health and Safety 

performance within their business, 

measured against a series of standard 

proactive and reactive metrics. 

Management also receives detailed 

reports on any major accidents 

and ensure that recommendations 

arising from these investigations 

are implemented. 

A Group Health and Safety Committee 

reports regularly to both the Group 

Audit Committee and the main 

James Finlay Limited Board. 

In 2010 the main focus of Health 

and Safety was the introduction of 

proactive reporting and the application 

of standard reporting uniformly 

applied across the Group. Any serious 

incidents were thoroughly investigated 

and, if necessary, action was taken 

to help avoid a recurrence. The risks 

associated with driving in Kenya, which 

has resulted in a number of serious 

accidents involving employees, have 

been recognised by the appointment of 

a Road Safety Training Manager whose 

aim is to improve employee driving 

standards within the Group. 

The key performance measures detailed 

on page 31 indicate that further work 

is still required to ensure consistency 

in reporting particularly in relation to 

occupational illness. 



3.2 People 

Occupational Health and Safety - key performance measures 

Incidents Rates per 

100,000 hrs 

2009 2010 

Incidents Rates per 

100,000 hrs 

Fatality 5 0.006 4 0.005 

Major 833 0.93 389 0.45 

Minor 2,619 2.92 2,870 3.29 

Occupational Illness 25 0.03 2 0.00 

Property Damage 0 0 253 0.29 

Near Miss 179 0.20 354 0.41 

Claims 0 0 326 0.37 

Lost time hrs 62,918 70.08 71,374 81.84 

In 2011 the main focus will be strengthening the reporting systems in the 

company by ensuring all businesses adopt proactive, as well as reactive 

reporting formats, which are consistently applied across the Group. 

We will be using our internal audit function to verify the accuracy of 

data reporting. 


Business Unit performance 

4.1 Tea estates – Kenya and Sri Lanka 

32 

Tea Estates Kenya Sri Lanka 

Activity Green & black tea 

Sustainable timber for energy 

4 factories, 12 tea estates in Kericho 19 tea factories, 26 estates in Rakwana, 

Ratnapura, Halli’ella, Passara, 

Nuwara’Eliya and Matale Site 

Market Worldwide Worldwide 

Awards or certification Rainforest Alliance certification 

Fairtrade certification 

Organic certification 

ISO 22000 (Food Safety 

Management System) 

Membership of ethical, 

environmental or industry bodies 

Kenya Tea Growers 

Association (KTGA) 

Federation of Kenya Employers (FKE) 

Kenya Alliance of Residents Associations 

(KARA) 

Green & black tea 

Rubber 

Coconuts 

Sustainable timber for energy 

Minor crops 

Rainforest Alliance certification 

ISO 22000 

Organic certification 

Fairtrade certification 

Employers Federation of Ceylon 

Tea Research Institute of Sri Lanka 

Rubber Research Institute(Sri Lanka) 

Plantation Housing Development 

Trust Ministry of Nation Building 

& Infrastructure 

Ministry of Natural Resources – 

Sustainable Development Division 

Ministry of Economic Development – 

Gamaneguma community driven 

livelihood improvement project 




Tea Estates have made good progress in their sustainability plans. 

In Sri Lanka our estates are 2 years into a 3-year programme of working towards 

the Rainforest Alliance Sustainable Agricultural Network standard that we are using 

a baseline for all our tea operations. 

In 2010 the Nuwara’Eliya and Halli’ella Groups were 

awaiting auditor dates for inspection. They have 

subsequently been through the process and will be 

formally accredited in 2011. This year will see the 

remaining regions of Matale, Ratnapura and Rakwana 

taking up the challenge of implementing Rainforest 

Alliance certification. All Kenya estates have been 

certified to Rainforest Alliance standards for 3 years. 

Next steps 

Historically, Finlays have undertaken a significant 

amount of work as a ‘Catalyst for the Community’, 

driving economic, social and environmental change. 

From 2011, Tea estates in Kericho will begin reporting 

specifically on its role as a ‘Catalyst for the Community’. 

In Sri Lanka, project areas in the role both of employer 

and catalyst for change in the community include 

market diversity, impact of climate change, sustainable 

agriculture practices, and excellence in forestry. 

These will form the core areas of their sustainability 

strategy, in addition to the Group objectives. 

Tea Estates 

Outgrowers 

Kenya 

Black/Green 

tea Kenya 

Black/Green 

tea Sri Lanka 


Made tea kg millions 

50 

40 

30 

20 

10 

0 

2007 2008 2009 2010 

Rubber and Forestry Production 

kg/stm 3 

1200,000 

1000,000 

800,000 

600,000 

400,000 

200,000 

0 

2007 2008 2009 2010 

Eucalyptus 

Kenya stm 3 

Rubber kg 

Cypress stm 3 

Eucalyptus 

Sri Lanka stm 3 

Coconut nuts 

600,000 

500,000 

400,000 

300,000 

200,000 

100,000 

0 

nuts



34 

Energy 

Total energy use is up for 2010 due to the high crop levels of the year and higher moisture 

content in the leaf due to unusually high rainfall. Given the higher processing demand, the 

increase has been mostly in the use of sustainable firewood for boilers with renewables 

contributing to 87.3% of total energy. 

In Kenya, performance was affected by the significant 

increase in use of renewable timber due to continuous 

wet weather conditions, causing use of firewood and leaf 

with higher moisture content. The amount of energy 

taken from the national grid has dropped, however, as 

the contribution of our own hydro operations increased. 

Major projects to be undertaken in 2011 for Kenya include 

building of a ropeway for leaf collection to replace fossil 

fuel vehicles and use of solar energy in tea production. 

In Sri Lanka high volumes have reduced energy usage per 

unit of production by 7%. Given the disparate locations 

of the factories, achieving major changes in fuel 

requirements has been difficult. Continued focus on 

the use of biomass waste as a fuel will be extended 

to new units in 2011. 

Tea Estates energy usage 

GJ 

1200,000 

1000,000 

800,000 

600,000 

400,000 

200,000 

0 

2007 2008 2009 2010 

Indirect 

renewable 

Indirect 

non-renewable 

Direct 

non-renewable 

Direct 

renewable 

per unit SL 

Per unit Kenya 

0.030 

0.025 

0.020 

0.015 

0.010 

0.005 


0 

per unit of production



Energy 

Leadership 

Sustainability in 

Energy Supply 

Our vision for energy supply is 

to be completely self sufficient 

in electrical and heat energy 

within the next decade on our 

tea estates. 

We are actively pursuing the latest 

technologies to enable us to generate 

this energy in carbon neutral generating 

plants. Alternatives being assessed 

include biogas, gasification, Combined 

Heat & Power (CHP), solar power, 

efficient boiler technology, and hydro 

electric power. We will also attempt 

to reduce internal usage of diesel by 

installing, where appropriate, a carbon 

neutral ropeway transport systems to 

move most of the tea and fuel wood. 

These steps will allow us to sustainably 

mitigate the impact of rising oil prices 

and other energy costs. 

Fuel wood/ heat energy 

A second more efficient boiler is in 

the final stages of installation at 

Chomogonday. The first one is 

successfully operating at Kitumbe. 

We have conducted trials with 

Bagasse briquettes, which should 

be compatible with this boiler. 

Community 

The manufacturing unit of Bagasse 

briquettes has a policy of employing 

widowed women; a CSR initiative 

created to help those undergoing 

personal difficulties. 

Finlays has joined with 

other major players in the 

agricultural sector to lobby 

the government to increase 

Feed-in tariffs for electricity. 

Forestry 

The speed at which we replant has 

improved by over 2 months per stand 

on average. 

Best practice standards have been 

implemented following extensive 

process improvement work with 

an external consultant. 

Waste 

Biogas may have its place as a 

sustainable and energy saving method 

of disposing of human waste and 

wet flowers waste. Ongoing trials are 

showing good results. We are planning 

to install a 20,000-litre digester in 2012. 

We have purchased several hundred 

tons of briquettes from the sugar belt. 

Solar Energy 

We are installing one thermal solar 

system into the overall CPW system 

(Continued Physical Withering) in 

Kitumbe in 2011. This will be a test 

case for future solar installations. 

Having reviewed the possibilities of 

infield wood chipping we decided that 

it is more cost effective to chip at the 

factory. We have started a series of 

experiments with drying in order to 

determine how a simple drying 

system might work. The Main Saosa 

CHP Scheme (2.7 MW or more) is 

being finalised and is expected to 

facilitate significant improvements 

in the conversion ratio of firewood 

to final product at Saosa. 

Other initiatives 

We have almost completed the 

installation of a ropeway leaf 

transport system in the Kitumbe zone. 

This will reduce the fuel used, per 

kilo of green leaf, by a considerable 

amount thereby reducing our carbon 

footprint as well as costs. 

Electrical Energy 

The cost of power dropped 

considerably in 2010 due to high 

rainfall in Hydro catchments. 

Our Hydro power stations operated 

at full capacity for several months 

in 2010. 

CHP – Saosa. The steam turbine at 

Saosa has been producing up to 400 kW 

under the current steam flow regime. 

With the second line project due by 

the end of the year this unit should 

supply up to 700 kW. This will assist 

on reducing power import until the 

new CHP (2.7 mW) is approved. 

Finlays has joined with other major 

players in the agricultural sector to 

lobby the government to increase 

Feed-in tariffs for electricity. 




Achievements in 2010 

36 

Objectives Targets 2010 Achievements 2010 

Carbon Kenya: 5% reduction in emissions (Scope 1&2) 

Sri Lanka: 2% reduction in emissions 

Water1 Kenya: 5% reduction per unit of production 

Sri Lanka: Installation of water meters all factories 

Energy2 Kenya: 5% Reduction in total energy used 

2% reduction per unit of production 

Sri Lanka: 5-10% reduction per unit of production 

Waste 3 Kenya: Reduce landfill by 10% 

Sri Lanka: Implement community waste in 

Nuwara’Eliya and Halli’ella 


Sustainable Agriculture 

Standards 

Catalyst for positive 

change in the 

communities we serve 

Rainforest systems in place for Hal’iella and 

Nuwara’Eliya 

Expansion of kitchen gardens 

Introduction of energy-saving stoves in villages 

Introduction of FRICH project to local community 

Setting up of Finlays trust 

Fairtrade Empowerment 2010-Kenya 

Scope 1 & 2 reduction of 12% 

Scope 1 & 2 reduction of 8.4% 

12.5% reduction per unit of production 

Installed 

36% increase in total energy used 

9% increase per unit of production 


Reduction to landfill of 41% 

Implemented 

3 

3 

3 

3 

5 

5 

3 

3 

3 

Completed 3 

1 Kenya - overall numbers are up due to better measuring. Number includes domestic use for 12, 000 housing units. 

Plans in 2011 will see this separated from factory and domestic. 

2 Energy numbers for 2007 to 2009 have been revised due to changes in data definitions. 

3 Revised figures for 2009 show an unexplained reduction in waste for recovery (compost). 

Given concerns over 2009 data we have used 2008 data for comparison. 

3 




Plans for 2011 

Objectives Major Activities 2011 Targets 2011 

Carbon Completion of ropeway in Kitumbe Group 

Reduction of leaf vehicles 

Water Focus on reduction in water pumping 

Rainwater harvesting at all factories in Passara/Hali’ella/ 

Nuwara’Eliya region 

Effluent beds in Matale, Rakwana and Hapugustenne 

Energy Use of solar energy in lighting/withering 

Focus on reduction in water pumping 

Installation of paddy husk fired boilers at Courtlodge 

and Springwood 

Development of Madulkelle and Demodera hydro electric 

power potential 

Waste Introduce E-waste management system 

Streamline more third party contracts on waste disposal 

with CEA affiliated contractors. 


Sustainable Agriculture 

Standards 

Catalyst for positive 

change in the 

communities we serve 

Rainforest Alliance certification standards to be achieved 

for remaining units in Matale, Ratnapura and Rakwana 

Extension of kitchen gardens and energy saving Jikos 

to the community 

Continuation of FRICH project 

Options for continued support of protection of the Mau 

Scope 1 5% reduction 

Scope 2 5% reduction 


All Sri Lanka units to have full year 

data 2011 

5% overall reduction on 2009 


Kenya: 45% reduction in landfill 

Sri Lanka: Implementation in 

Hapugustenne, Matale and Rakwana. 

Reporting waste data Passara, 

Nuwara’Eliya and Halli’ella 

0% to landfill, Passara Group 




Biodiversity and 

the community 

Sri Lanka enjoys a diverse range 

of flora and fauna within the 

different geographical patterns 

across the country. 

As part of work towards sustainability, 

our estates are engaged in implementing 

Rainforest Alliance certification, which 

includes the ecosystem and wildlife 

conservation. We have commissioned 

independent experts to identify flora 

and fauna on our estates and we have 

begun educating the wider community 

on the importance of preservation 

and protection. 

Many of our estates have existing areas 

of forestry and border some of the 

reserved forest areas. These include 

the main virgin forest of Sinharaja 

bordering the Rakwana group of 

estates, and mountain forests close 

to Nuwara’Eliya bordering Park and 

Court Lodge, which also borders 

Piduruthalaga Mountain, the tallest 

mountain in Sri Lanka. 

38 

In harmony with 

the community 

We are now developing a conservation 

programme in which the findings of 

our identification project will inform 

our management of the land. We are 

also creating awareness and positive 

activity amongst the community. 

We have pioneered work through the 

recently established Gemidiriya, which 

operates as a village development 

society with membership drawn from 

both the estate and village society. 

This is a significant step towards 

shared responsibilities, since it is one 

of the first projects on which estate 

and village have worked in harmony. 

The company and the community now 

come together on a variety of common 

issues such as water provision, waste 

management and protection and 

enhancement of the environment. 

Gemidiriya will play an increasingly 

important part in the continued 

protection of biodiversity in our regions. 

Biodiversity in the 

Passara Region 

About 11 % of the recorded flora 

species (20 plants) in the study area 

are endemic. Out of 182 recorded 

plant species, 6 plant species 

including two endemic species 

are listed as Nationally Vulnerable 

(VU) and 1 plant species listed as 

Nationally Endangered (EN). 

Biodiversity in the 

Demodera Region 

A total number of 143 plant species 

including 14 endemic and two 

nationally threatened plant species 

were recorded during the field survey 

within the study area. The majority 

of the plant species recorded are tree 

species (69) followed by herbaceous 

species (31), climbers (26), shrubs (16) 

and epiphytes (1). Further, about 33 % 

of the recoded flora species are exotic 

to the country and about 57 % of the 

recorded floras are natives. The balance 

are not native. 

A total number of 76 faunal species 

(42 Birds, 17 Butterflies, 5 Dragonflies, 

5 Reptiles, 6 Mammals and 1 Amphibians) 

including 8 endemics, 1 proposed 

endemic and 3 nationally threatened 

species were recorded. 

We have conducted 

scientific surveys to identify 

the flora and fauna across 

Passara region, Halli’ella 

region and Nuwara’Eliya. 






4.2 Leaf Tea Trading and Extracts 

40 

Leaf Tea Trading and 

Extracts Kenya 

Trading Offices in London, Dubai, Mombasa, Blantyre, 

Jakarta, Hanoi, New Jersey and Xiamen 

Tea Extracts production in Kericho 

Activity Tea Trading Tea Decaffeination Extracts and Aroma 

Market Global Global Global 

Employees 767 permanent 

183 seasonal 

Awards and certification Fairtrade ‘Processor’ 


ISO22000 

Organic ‘Processor’ certification 

Membership of ethical, 

environmental and industry bodies 

United Kingdom Tea Council (UKTC) 

UKTC Technical Committee 

ISO Tea Committee 

Members of the US Tea Association 




Leaf Tea Trading and Extracts 

The product portfolio of Leaf Tea Trading and Extracts is a good example of the Groups 

commitment to provide products that contribute to the health and well being of society. 

The Hull factory continues to demonstrate good practice 

and performance, with year-on-year reductions in all 

measures through close attention to detail. The caffeine 

recovery system developed in 2010 is nearing completion 

and is due to be commissioned towards the end of 2011. 

There was an increase in landfill for 2010 resulting from 

the delivery of product on non-reusable cardboard pallets 

from one of our suppliers. 

The data from Kenya Extracts continues to represent a 

challenge. Mara Mara and Saosa fell short of targets both 

operationally and in terms of data collection. 

The closure of Mara Mara factory and the installation of 

a second line at the modern Saosa factory should result 

in significant reductions in energy use, waste and water. 

The major challenge for the site, however, will be to ensure 

significant improvement of the systems and tighter controls. 

The Mombasa business participated in reporting for 

2009 and 2010 as scheduled. While numbers have 

increased year-on-year, the overall footprint is low. 

The main focus for Mombasa warehouse and packing 

will be in the area of waste and energy. 

Tea Solutions – 

Leaf tea trading and extracts 

Tea Extracts Tea Aroma 

Decaffeinated Tea 

Leaf Tea traded 


Kg millions 

5 

4 

4 

3 

3 

2 

2 

1 

1 

0 

2007 2006 2009 2010 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

Kg millions



42 

Health and well-being 

Health and well-being have assumed a high priority for food 

manufacturers and retailers in recent years. Many of Finlays’ 

customers are pursuing strategies to enhance their health and 

well-being credentials, including: 

• Developing foods with added benefits 

• Reformulating existing products to make 

them more nutritious 

• Emphasising environmental credentials 

• Eliminating ingredients of an artificial 

or unhealthy nature 




In 2010 we conducted an extensive 

review of the health and well being 

market. The purpose of our research 

was to ascertain how we can meet 

the needs of our customers, now and 

in the future, whilst maintaining our 

commitments to the environment and 

the communities in which we operate. 

Two key focus areas inform our health 

and well-being strategy: 

i. Enhancing the health and wellness 

credentials of our product portfolio 

ii. Continued engagement with suppliers 

and customers in the development 

and maintenance of certifications and 

standards (see box below). 

Tea has gained popularity amongst 

product developers as a functional 

ingredient. It is now found in many 

products where it may not traditionally 

have been expected i.e. functional 

beverages, pet foods, beauty products, 

breakfast cereals, juices and snacks. 

As the second most consumed beverage 

in the world - and one with perceived 

inherent health benefits - tea is a 

welcome ingredient for developers 

and consumers. We predict that its 

popularity will continue to grow as 

‘naturalness’ takes precedence over 

synthetic ingredients. Finlays’ product 

portfolio contains many products 

suitable for these purposes and we 

will continue to drive product 

development in this area, alongside 

the promotion of responsible 

communication on tea and health. 


NGOs and their certification schemes 

have played a transformational role 

in driving the health and well being 

agenda of society in the tea industry. 

These schemes will continue to help 

shape how tea is produced. 

As a business-to-business company, 

we sit between producers and many of 

the retailers and tea packers, giving us 

an important role in communicating 

messages up and down the supply 

chain. We are committed to continue 

facilitating the development and 

implementation of trading standards 

and certifications that contribute 

positively to the health and well 

being of consumers and society 

as a whole. 

During 2011 we plan to roll out our 

health and well being programme 

across all departments within Finlays 

Leaf Tea Trading and Extracts and will 

develop specific plans to help us meet 

our objectives. 

Health and well-being targets for 2011 

• Develop a carbon footprint model for 

tea; validate methodology through pilot 

assessment on leaf tea and tea extract 

• Develop a water footprint model for 

tea; validate methodology through pilot 

assessment of leaf tea and tea extract 

• Develop an implementation plan for 

enhancing the health and well-being 

credentials of our product portfolio. 

3-Year Plan – Health and Well-being Objectives 

Assess long term sustainability of current products and services 

Explore opportunities of how to improve the health credentials 

of current product portfolio where appropriate 

Develop criteria by which to judge future business opportunities 

in product development and sourcing 

Develop a communication plan to drive the health and well being message 

across Finlays Leaf Tea Trading and Extracts Business Units and suppliers 

and engage with external certification bodies to help drive sustainability 

agenda across the tea industry 

Monitor food safety risk in products and supply chain 

As a business-to-business company, we 

sit between producers and many of the 

retailers and tea packers, giving us an 

important role in communicating 

messages up and down the supply chain. 

43



Caffeine purification project 

Effluent and waste streams have become key focus areas for Finlays. 

The effective management of 

effluent streams often offers financial 

benefits. Finlays invests in identifying 

opportunities where improvements can 

be made through financial incentives. 

For Finlays Leaf Tea Trading and 

Extracts, the effluent stream of our 

decaffeination plant has been identified 

as one such opportunity. 

During 2010 we have successfully 

developed a method to remove caffeine 

from our effluent stream. Further work 

has purified the extracted caffeine into 

a natural food-grade source of caffeine. 

The process enables us to reduce 

trade effluent costs, produce cleaner 

municipal waste water and, at the 

same time, develop a commercially 

viable product. 

44 

We expect the purified caffeine to be 

of great interest to food manufacturers. 

The success of this project 

demonstrates that a reduction in 

trade effluent and cleaner waste water 

can be achieved through a combination 

of market demand (natural caffeine) 

and an investment in in-house process 

development. This means we are 

utilising the raw material going into 

the plant to its full potential whilst 

making improvements in our 

effluent management. 

The effective management of effluent 

streams often offers financial benefits. 

Finlays invest in identifying opportunities 

where improvements can be made 

through financial incentives. 








4 Performance on water has been calculated using 2009 figures as a base, as reported in last year’s Sustainability Report – this includes 

figures for Finlay Leaf Tea Trading and Extracts. The water data reported for Finlay Leaf Tea Trading and Extracts in the 2009 report was 

based on assumptions therefore in order to measure overall performance in 2010 we have taken the 2009 figures into account and care 

should therefore be taken when reviewing this year’s water performance. 

5 The % increase in water use is predominantly due to improvements made in metering water usage in Mara Mara Factory (MMF). 

The consolidation of MMF and Saosa Factory (SSF) would also have contributed to an increase in water usage. 

6 The increase is the result of firing high %mc wood of about 40% and above in MMF/SSF. 

7 Performance on waste has been calculated based on 2009 figures as reported in last year’s Sustainability Report – this includes figures 

for Finlay Leaf Tea Trading and Extracts. In order to measure overall performance in 2010 we had made an assumption for Finlay Leaf Tea 

Trading and Extracts waste performance in 2009- thus the 2009 figures have been used. Care should therefore be taken when reviewing 

this year’s waste performance. 

8 Meeting targets was mainly the result of the reclassification of green waste to recover rather than landfill. 

46 


Carbon 5% per unit of production reduction >total carbon 11% increase 

Scope 1: 21% reduction 

Scope 2: 44% increase 

Scope 3: 12 % increase 

Water4 Finlays Hull: Overall 5% reduction 

Extracts: 5% per unit of production 

Energy2 Finlays Hull: 5% per unit of production reduction 

Extracts: 5% reduction 2010 

Waste 7 Finlays Hull: 5% reduction 

Extracts: 20% reduction in landfill 


88% increase in total water usage 


8.4% increase in total energy use6 Finlays Hull reduction of 12% in total waste 

20% reduction in waste to landfill8 5 

3 

5 

3 

5 

3 

3 






Carbon Monitor exact usage of refrigerants R22 & R134A 

Activities to meet energy and water targets will help 

meet carbon targets 

Water Caffeine extracted from effluent for sale 

Implement Cleaning in Place (CIP) initiatives to reduce 

water usage in plant5 Installation of effluent treatment plant 

Meter effluent streams at different stages of production 

Meter water used at different stages of production 

Energy Install more efficient boilers 

Improve boiler efficiency 

Stockpile of fuel wood under cover 

Utilise spent leaf for energy generation 

Waste Burn 100% black tea & 60% green tea spent leaf 

Develop and implement an improved strategy to 

recover green waste 

Improve on measurements for waste 

Explore packaging options for incoming materials 

Scope 1 Minimum of 5% reduction 

Scope 2 Minimum of 5% reduction 

(2010 baseline) 

Minimum of 15% reduction in water usage 

(2010 baseline) 

5% reduction in energy usage (2010 baseline) 

0% to landfill 

5% reduction in plastic waste 

5% reduction in paper and cardboard waste 

Demonstrate that 100% of recovered green 

waste is dealt with in a sustainable manner 



4.3 Finlay Beverages 

48 

Finlay Beverages is a beverage packing business located on a state of 

the art, purpose built site in Yorkshire, supplying major UK retailers 

and national foodservice operators with tea and roast & ground coffee. 

Achievements of note have been the reduction in Scope 3 carbon emissions due to the increase in 

raw materials transported to South Elmsall by rail and a reduction in the volume transported by 

road. Since the amount of carbon emitted by road freight has been calculated at thirteen times 

that of rail freight, the management of this process has become a key area of attention. Transport 

of raw tea to South Elmsall via rail commenced in 2006; in 2007 approximately 50% of our tea was 

transported by rail. By 2010 the figure had risen to approximately 75%. 

Finlay Beverages 1 Site 

Activity Tea blending & packing 

Coffee roasting & packing 

Market UK Private Label retail, 

food service and export 

Employees 206 permanent 

6 casual 

Awards and certification BRC Certification – A Grade 

Membership of any 

ethical, environmental 

and industry bodies 

Coffee Community 

British Coffee Association 

UK Tea Council 

FLO Tea Product Advisory Committee 

Valpak (Packaging Waste Regulations) 

Beverage Service Association 

Common Code for the Coffee Community 

Food and Drink Federation (FDF) 

Institute of Packaging 




Packaging 

In 2010 Finlay Beverages committed to a vision for the sustainable sourcing of packaging 

materials. We believe that the development of materials from renewable resources should 

remain the focus of attention and this will continue to be central to our goals. 

Finlay Beverages long term objectives 

• The pursuit of 100% renewable materials 

across all packing formats 

• The pursuit of 100% recyclability across 

all packing formats 

• Ongoing reduction in like-for-like packaging 

usage (by weight) 

We have set a target of 30% reduction in the volume of 

our packaging by 2014, based on 2008 consumption. 

Our three primary packaging materials (tea cartons, 

teabag paper and coffee laminates) constitute over 

70% of the packaging we consume. 

Finlay Beverages packaging 

Coffee Packaging Tea Packaging 


kgs – millions 

16 

12 

8 

4 

0 

2007 2008 2009 2010



Tea packaging 

Tea cartons are produced from 

renewable sources, so activities in this 

area are focussed on volume reduction. 

A weight reduction project in 2008 

resulted in weight savings of c.10%, 

and activity to reduce this further is 

being looked at within the boundaries 

of the product specification. The 

actual dimensions of the tea carton 

form an obvious focus point for 

exploring reductions, and we have 

been undertaking consumer research 

to ensure we fully appreciate its 

functionality and value by retailers 

and the end user. The removal of the 

cellophane overwrap would bring us 

nearer to achieving a fully recyclable 

tea carton. This decision may appear 

straightforward, but is one that will 

require research to ensure that this 

change will not be detrimental to 

product quality and that a suitable 

alternative tamper evident solution is 

available. We therefore need to make 

sure it’s the right decision and explore 

all options fully. 

50 

Inks 

Further work on cartons includes a 

move towards low-migration inks. 

In 2009 we reported that all varnishes 

had been moved away from the UV 

sealing process over concerns related to 

the leaching properties and potentially 

harmful effects of Benzophenone. 

Industry suppliers of inks have been 

slow to develop viable solutions for a 

similar move to low- migration inks. 

In Q4 of 2010, however, we commenced 

trials with low-migration inks and have 

used these in production for a limited 

number of customers. In 2011 we plan 

to move all customers to this format. 

Coffee packaging 

Ultimately our goal is to move away 

from our aluminium based laminate 

coffee packaging towards a sustainable 

alternative. This will involve exploring 

the viability of paper based material. 

At present, the industry continues to 

work on developing a material with a 

suitable barrier for this application and 

a move to this format would probably 

require future investment in packaging 

machinery. We believe that our goal 

is achievable within a five year period 

with the technical support from our 

supply base and customers; with 

this in mind, we will be working with 

and encouraging our suppliers and 

customers to make the move with us. 




Waste 

Production volume reduced by 12.8% against the previous year, whilst the total waste 

generated has risen by 3%, from 687 tonnes in 2009 to 705 tonnes in 2010. This increase 

is attributed to the disposal of 80 tonnes of obsolete machinery driven by the closure of an 

off- site storage facility. Without this disposal, the true operational waste would have seen 

a reduction of 9% on the previous year. 

Operational waste (arising directly from the production 

process) did not reduce in line with volume because of 

the mix of products that were manufactured over the 

twelve month period. The reduced volume against 2009 

was predominantly from the tea factory, resulting in an 

increase in the proportion of coffee to tea which amounts 

to an additional 1% of the total volume. The wastage in 

the coffee manufacturing process is greater than that of 

tea, consuming twice the volume of packaging per kilo 

of production. When combined, this equates to a net 4% 

increase in waste per unit of production. 

Our largest single waste stream to landfill was the trim 

from teabag paper (156 tonnes in 2010). In December 

2010, however, we installed a baler that will reprocess the 

trim so that it can be reused as animal bedding. 

With the removal of teabag paper from landfill, the next 

largest contributor to this waste stream is laminated 

coffee film, accounting for 50 tonnes of waste in 2010. 

This will be a focus of attention in 2011. A project 

is underway to look at the viability of recovering the 

aluminium content of the laminated material. 

The waste from the coffee roasting process (chaff) 

represents 45 tonnes of green waste. This is a natural, 

biodegradable material which is currently channelled 

to landfill. A focus for 2011 is to explore the possibility 

of composting this material so it can be put to use for 

agronomical purposes. 

Landfill 


Tonnes 

Finlay Beverages waste 

800 

700 

600 

500 

400 

300 

200 

100 

0 

2006 2007 2008 2009 2010 

Reuse 

Landfill per unit 

Recycle Waste per unit 

0.0600 

0.0500 

0.0400 

0.0300 

0.0200 

0.0100 

0.0000 

Waste kg per unit




52 


Carbon Year on year reduction 4% total overall 

14% reduction per unit production 

Water Year on year reduction per unit 33% reduction total per unit 3 

Energy Year on year reduction per unit 15% increase per unit of production 

1% increase overall 

Waste Year on year reduction per unit Operational 9% overall reduction in waste 

16% reduction in waste to landfill 

Packaging Sustainable Packaging strategy 

plan developed 



Carbon Plan to target the reduction in consumption of 

gas and electricity 

Increase amount hauled on rail, reduce the volume 

of raw materials transported by road 

Water Plan to further reduce water consumption 

across the site 

Year-on-year reduction of 5% per unit 

of production on scope 1 & 2 

Year-on-year reduction of 5% per unit 

of production 

Energy Interventions based on data 5% overall reduction in energy used 

Waste Investigate coffee chaff disposal options 

Investigate options for coffee aluminium 

laminate waste 

Tea bag paper to be sent for animal bedding 

Packaging Integrate waste with packaging targets 

Plans to review the dimensions of the tea caddy 

Overwrap illuminations on tea cartons and caddys 

Investigate non-aluminium options on 

coffee packaging 

Right-weighting of tea cartons 

Pursuit of sustainable coffee packaging 

50% reduction in waste to landfill 

5% per unit of production 

3 

5 

3 



4.4 Finlays Colombo 

Finlays 

Colombo 

Activity Tea Packing & 

Warehousing 

Volumes 6.7 million Kgs 

Warehousing: 

33,000 packages 

Organised around 6 Strategic Business Units 

Haldamullah 

Green Tea 

Factory 

Healthcare 

Division 

446,000Kgs 309,993kgs of 

clinical waste 

Temperature 

Controlled 

Logistics 

Timber & Pallet 

Division 

7,000 Pallets 5,020 m 3 

50,000 pallets 

Insurance 

Market Worldwide Sri Lanka Sri Lanka Sri Lanka Sri Lanka Sri Lanka 

Employees 774 

Awards and 

certification 

Membership 

of ethical, 

environmental 

and industry 

bodies 

Quality Management System 

Food Safety Management System 

Environmental Management System 

British Retail Consortium (BRC) 

Fairtrade processor 

Organic processor 

Employers Federation of Ceylon 

International Association of Refrigerated Warehouses 

Ceylon Chamber of Commerce 

Exporters Association of Sri Lanka 




54 

In 2010 we focused on putting in place effective systems at Finlays Colombo for 

managing the Group objectives for carbon, water energy and waste. These areas 

show incremental improvement over the year. Of particular note has been our 

reduction of carbon and non-renewable fuels by 

switching energy at the Haldamullah Green Tea 

Factory from furnace oil to sustainable timber. 

As a product and service based business, without the 

large environmental and social footprint of the tea and 

horticulture business, our focus for Finlays Colombo 

is to provide sustainable products and services that 

contribute positively to the health and well being of 

society. These include sustainable packaging for tea 

and innovative solutions for societal needs in terms of 

waste management, temperature controlled storage and 

improving the lifecycle of products. 

Tea Warehouse and Temperature 

Controlled Logistics 

Occupancy % 

100 

80 

60 

40 

20 

0 

2007 2008 2009 2010 

Temperature Controlled Logistics 

Warehouse Storage 

Tea packed and green tea production 

Volume Kg millions 

8 

6 

4 

2 

0 

2007 2008 2009 2010 

Tea Packed 

Haldamullah Green Tea 






Carbon Year on year reduction Total: 4% reduction 3 

Water To install water meters Water meters installed in all units 3 

Energy Year on year reduction Reduction of 6.9% total energy used 3 

Waste 2% reduction No businesses measured effectively 5 



Carbon See energy – Focus on scope 2 Year-on-year reduction of 5% per unit of 

production on scope 1 & 2 

Water Reduce vehicle washing 

Reduce cistern capacity in all toilets-all other sites 

Energy Capture natural lighting in new construction 

project at Wattala 

Targeted energy saving through awareness campaigns 

Waste Discrete waste streams to be set-up 

All e-waste to be collected for suitable disposal 

at a central point 

Products and services Develop specific objectives and targets for TCL, 

Environmental Services and Tea Packing 

10% reduction all sites 

5% reduction in energy used 

10% increase in renewable component 

All businesses to start measuring paper, 

metal, plastic and glass 

Develop SBU specific objectives for TCL, 

Environmental services, tea packing and 

Haldamullah 



4.5 Horticulture Division 

56 

The Horticulture Division 

performance summary includes: 

4.5.1 Horticulture Overview 

4.5.2 Horticulture UK and Europe 

4.5.3 Horticulture Africa 




Finlays 

Horticulture 

Cut Flowers (UK and Europe) 

Finlay Flowers in Sandy and Spalding 

Finlay Flowers BV in The Netherlands 

Omniflora in Germany 

Fresh Produce UK 


Taikoo Flowers & Young Plants 

Activity Cut Flowers Fresh Produce 

Market UK and Europe and Japan Private 

label retail 

UK Retail / EU Retail 

Employees UK and Europe - 1060 permanent, 385 temporary employees 

Awards and certification SEDEX Member Ethical Trading Audit (SMETA) 

British Ornamental Plan Producers certificate (BOPP) 

Membership of ethical, environmental 


Ethical Trading Initiative (ETI) 

Supplier Ethical Data Exhange (SEDEX) 

Horticulture has an annual turnover of £311 million and employs 

11,000 people around the world. Operations include growing, 

procuring and supplying flowers and vegetables to retailers in the 

UK, Europe, and Japan. The horticulture division has farms in Kenya, 

South Africa and China. 

In 2010 we sold 816 million flowers (stems), including 355 million 

stems from our own farms. We also sold 28,000 tonnes of vegetables, 

25% of which were grown on our own farms or by our small-holders. 

The majority of our fresh produce is sourced from suppliers around 

the world, many of whom we work with in long term partnerships. 




Product origin 

58 

Finlay Flowers Finlays Fresh Produce 

Colombia - 3% Holland - 25% 

UK - 9% Other - 6% 

Israel - 3% Kenya - 44% 

South Africa - 8% Spanish - 2% 

Asia - 3% 

East Africa - 4% 

UK- 5% 

Kenya - 63% 

North Africa - 10% 

South/Central 

America - 15% 




Finlays Horticulture Energy usage 

GJ 

600,000 

500,000 

400,000 

300,000 

200,000 

100,000 

0 

2007 2008 2009 2010 

Indirect 

renewable 

Indirect 

non-renewable 

Direct 

non-renewable 

Direct 

renewable 

Finlays Horticulture Water usage 

m 3 

7,000,000 

6,000,000 

5,000,000 

4,000,000 

3,000,000 

2,000,000 

1,000,000 

0 

2007 2008 2009 2010 

Total water reused Net Water 

Rainwater as component of net water 

Activities and Performance in 2010 

• 90% of Horticultures energy use is in Africa. 

• In 2010 Horticulture used 454,754 GJ of energy; 

a 10% reduction on 2009. 

• 10% of energy used is from renewable sources. 


• Horticulture used just under 6 million cubic 

metres of water in 2010, 5% less than in 2009. 

• 9% of the water used is now recycled, 

compared to 7% in 2007. 




60 

Finlays Horticulture Carbon Footprint 

Tonnes CO 2 e Thousands 

300 

250 

200 

150 

100 

50 

0 

2007 2008 2009 2010 

Scope 3 Scope 1 

Scope 2 

Finlays Horticulture Waste 

Tonnes 

50,000 

40,000 

30,000 

20,000 

10,000 

0 

2007 2008 2009 2010 

Waste to 

landfill 

Waste 

recovered 

Waste reused 

Waste recycled 


• Carbon footprint in 2010 was 233,000 tonnes CO 2 e, 

a 10% reduction on 2009. 

• Scope 1 has increased by 5%, Scope 3 has reduced 

by 14% as a consequence of a 7% reduction in freight 

and an increase in sea and road freight. 


• Waste continues to rise to over 40,000 tonnes in 2010. 

Waste in 2010 increased largely as a result of weather 

related disruptions – snow and volcanic ash. 

• Waste to Landfill, however, has reduced and is now 

less than 1%, down from 25% in 2007. 




Carbon reduction and air freight 

Finlays is committed to ‘Zero Net Impact’ with a positive contribution 

to environmental recovery and resilience. 

This presents an interesting challenge for Horticulture where the business 

is heavily dependent on importing highly perishable flowers and vegetables 

both from our own farms and from other supplier partners around the 

world. Over 80% of the Business Unit’s carbon footprint is generated by 

air freight emissions associated with shipping flowers and vegetables. 

The debate about air freighted products is complicated. 

They provide development opportunities for employees and 

communities around the world. 

Products grown near the equator often have a lower footprint than those 

produced locally using artificial heat and lights. A study at Cranfield 

University in 2007 showed that roses grown in Holland had a carbon 

footprint six times greater than those grown in Kenya. 

Regardless of the social and economic benefits of growing flowers and fresh 

produce in Africa, we still believe that we can reduce the carbon emissions 

associated with the transport of our products. We are working towards this 

goal by following three principles: 

• Focusing on the efficiency of our air freight; ensuring that we only fly that 

which is sold to customers with the minimal amount of transit packaging. 

• Continuing to support our traditional growing regions and suppliers but, 

as we develop new sources, we are concentrating on those areas that can 

ship products by road and sea. 

• Developing ways to move products from air freight to sea freight. 

In 2010 we moved over 1,000 tonnes of 

flowers by sea, saving 5,000 tonnes of CO 2 e 

as a part of an overall carbon saving from 

transport of 12,000 tonnes, a 7% reduction 

in our total emissions. 




62 

Finlay Flowers 

Stems – millions 

1,2000 

1,0000 

800 

600 

400 

200 

0 

2007 2008 2009 2010 

Omniflora Finlay 

Flowers UK 

Finlay Flowers Carbon 

tonnes CO 2 e 

tonnes CO 2 e 

90,000 

80,000 

,70000 

60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

0 

200,000 

150,000 

100,000 

50,000 

0 

2007 2008 2009 2010 


Scope 2 Per unit 


0.12 

0.10 

0.08 

0.06 

0.04 

0.02 

0.00 

(2009 & 2010 include 

Omniflora) 

Finlays Fresh Produce UK Finlays Fresh Produce UK Carbon 

Kgs – millions 

30 

25 

20 

15 

10 

5 

0 

2007 2008 2009 2010 

2007 2008 2009 2010 

Scope 2 Per unit of 

production 

5.2 

4.8 

4.6 

4.4 

4.2 

3.8 

3.6 

kg per unit – stem 

Per unit production 


5 

4





Carbon Reduction per unit year on year Flowers Per unit reduction of 12.5% 

Fresh Produce 21% reduction 

Scope 1,2,3 

16% reduction per unit 

Water 5% reduction per unit of production Flowers 3.3% per unit of production 

Fresh Produce increase per unit 

of production of 29% 

Energy 5% reduction per unit Flowers reduction of 2% per unit 

of production 

Waste 0% to landfill 


Year on year reduction in waste to landfill 

Fresh Produce increase of 8% per 

unit of production 

Flowers 0% to landfill 

Fresh Produce landfill 51% 


Carbon Change in shipping specifications Reduction in 

airfreight waste, i.e. minimum stem length etc. 

Increase Sea and road freight 

Decrease green waste delivered 

Reduction in Energy use 

Water Use water meters to provide management 

information 

Investigate water harvesting 

Energy Complete site energy surveys (UK) 

Install low energy lighting 

Investigate peak flow savings 

Investigate ambient air handling for cold rooms 

Investigate Energy usage by area / by process 

Waste Pilot project to investigate waste flower 

recycling on site 

Reduce green waste delivered by air 

10% reduction scope 3 

5% reduction scope 1&2 

5% reduction in water used 

10% reduction 


0% to landfill 


3 

5 

5 

5 

5 

3 

3



64 

Fairtrade Certification 

In 2003 we became one of the first companies to help the small-scale farmers 

with whom we work to achieve EUROGAP certification. 

Most recently, Finlays Horticulture 

Kenya has successfully received 

Fairtrade certification for a group of 

346 fresh produce farmers in Mwea 

and Meru regions. This is the first such 

scheme in Africa that produces and 

sells Fairtrade vegetables. The scope 

of the Fairtrade standard is very broad 

and covers areas of GAP, Environmental, 

Health and Safety as well as the ethical 

aspects of the production process. 

So far, the introduction of the Fairtrade 

Scheme to the regions has helped 

to enhance the farmers’ awareness 

of entrepreneurship, leadership, 

discrimination, gender equality and 

social health. 

Training has included: 

• Awareness on the concept 

of Fairtrade 

• Understanding the concept 

of a constitution 

• Use of Fairtrade premiums 

• Book-keeping 

The Fairtrade premium is a sum 

of money paid on top of the agreed 

Fairtrade price which is then used for 

investment in social, environmental 

or economic development projects. 

The farmers do not yet have access 

to the premium but will do so 

once the necessary training on 

the administration and use of the 

premiums has been completed. 

The farmers have already suggested some 

proposals for the use of the premiums:- 

• Build a regional dam 

• Fund drip irrigation projects 

• Purchase land to build their sheds, 

since most sheds are currently on 

rented land 

• Purchase delivery trucks, to increase 

farmers’ margins 

• Build a nursery school 

• Dairy farming; using crop rejects 

as feed 

• Build a cattle dip 

• Poultry farming 




Horticulture Africa Naivasha, Mount Kenya, Kericho, 

Londiani, JKIA Depot, South Africa 

Activity Cut Flowers Fresh Produce 

Market Global Global 

Employees 5790 permanent, 2547 temporary 

Membership of ethical, environmental 


• Board member of the Kenya Flower Council, Chair of the KFC 

Certification Committee 

• Chairman of the Lake Naivasha Growers’ Group 

• Chairman of the Lake Naivasha Water Users’ Association 

• Chairman of the Umbrella Water Users’ organisation 

• Committee member of COLEACP 

• Committee member and Chairman of the World Trade Committee 

of Union Fleurs 

• Member of FOMAWA 




66 

Sustainable Water Management 

The increasing worldwide demand for water for human consumption and food production, 

coupled with the growing impacts of climate change, imposes a responsibility on all water 

users to manage their requirements as efficiently as possible. 

Finlays recognise that responsible water management 

involves not only maximising internal water use 

efficiencies, but also understanding and contributing 

to the wider aspects of sustainable management of 

water resources. 

There are three leading influencers in water 

resources management: 

• Government - which seeks to achieve overall 

policy, regulatory and enforcement objectives 

• Civil society - which has specific social and 

environmental objectives aimed at maintaining 

natural habitats and seeking to ensure equitable 

allocation and access to water for all 

• Industry - which seeks to identify, manage 

and reduce its water related business risks 

Finlays Horticulture Africa 

Stems – millions 

500 

400 

300 

200 

100 

0 

2007 2008 2009 2010 

Flowers stems Fresh produce 

5000 

4900 

4800 

4700 

4600 

4500 

4400 

4300 

4200 

4100 

4000 

Vegetables kg – thousands 




Social 

impacts 

The flow diagram below illustrates the likely impacts of 

unsustainable watershed management and the business 

risks that can arise if it is not addressed: 

Unsuitable watershed management 

Environmental 

impacts 

Water-related business risk: 

Physical Reputational Regulatory Financial 

Direct economic 

impacts 

In developing our sustainability strategy we recognised that we could not 

ensure sustainable watershed management simply by focussing on our 

own internal water use efficiencies; we must also engage in community 

watershed governance. 




Our main production site for roses is 

in Naivasha, which is the largest area 

of flower production for the Kenyan 

horticultural industry. 

Water for irrigation is drawn from the 

adjacent Lake Naivasha, designated as a 

Ramsar site, being a natural wetland of 

international importance, particularly 

for bird life. (Information on Ramsar is 

available at www.ramsar.org) 

As the horticultural industry has 

grown in parallel with a rapidly 

increasing population, the demand 

for water has increased and this has 

focussed attention on the long term 

sustainability of the lake and its 

catchment to support these demands. 

Finlays has responded to the challenge 

by investing extensively over the last 

five years in improvements in water 

use efficiency and by engaging in 

the wider issues of Naivasha 

watershed management. 

Internal water use efficiency 

In the early stages of the horticultural 

industry in Naivasha, the system of 

cultivation adopted the traditional 

practice of planting in the soil, using 

efficient drip irrigation to deliver 

water and nutrients. In time, this 

system became particularly vulnerable 

to soil borne diseases that required 

increasingly toxic chemicals to control. 

It quickly became apparent that this 

practice, particularly so close to the 

lake, was not sustainable. All new and 

replacement plantings, therefore, were 

taken out of soil and grown in substrate 

under a system of hydroponics. This 

system had the added benefit of being 

able to collect, filter and reuse any 

excess water and dissolved fertiliser not 

taken up by the plant. It also offered 

greater control over plant nutrition and 

led to improved production and quality. 

68 

Whilst the lake effectively acted as a 

reservoir for abstraction, over time the 

water quality deteriorated and further 

investment in on-site water storage was 

made to collect and store rainfall from 

the greenhouse roofs. This reduced 

both reliance on and abstraction from 

the lake, particularly in the dry periods 

of the year, and created a better quality 

alternative supply. 

The employment of a large workforce 

and product processing on the farms 

generates effluent that needs to be 

treated before discharge. On each Finlay 

farm this is collected and treated by 

passing it through constructed wetlands 

to render it suitable for discharge or, 

more appropriately, re-use. The process 

involves sedimentation and use of 

anaerobic and aerobic biological action 

enhanced by indigenous flora to take up 

any nutrients that may find their way 

into the water. The quality of outflow 

from the wetlands is found to be much 

improved compared with the water 

drawn directly from the lake and is 

discharged into the on-site storage 

for re-use. 

Finally, to further reduce the risk of 

water shortage if restrictions on lake 

abstractions are imposed in periods of 

dry weather or reduced lake levels, each 

farm has installed a Reverse Osmosis 

plant to treat water abstracted from 

boreholes located on the farms. Unlike 

the lake water, the borehole water is 

high in dissolved salts and must be 

treated before it is suitable for growing. 

The Reverse Osmosis plants are sized 

to provide adequate standby capacity 

to sustain the rose plants until normal 

levels of water abstraction can resume. 

The closed loop irrigation system and 

additions to on-site water infrastructure 

have resulted in an overall reduction of 

40% of the amount abstracted from the 

lake compared with the earlier in soil 

production techniques. 




Watershed Management 

Hydroponics Ultra filtration Reverse osmosis 

Wetlands 

Rain water collection Water storage and re-cycling 

In 2002, the Government of Kenya promulgated a new Water Act 

that created a legal framework to devolve responsibility for water 

management from a central to a regional function. It also provided for 

the formation of water users associations (WRUAs) to assist the regional 

management function of the Water Resources Management Authority 

(WRMA) at the sub-catchment level. 

The WRUAs are required to formulate sub-catchment management plans 

to define the objectives they intend to pursue and the financing required 

to achieve them. The objectives cover hydrological data collection, water 

quality monitoring, monitoring and compliance of water abstraction, 

preparation of Water Allocation Plan (WAP) for application in times of 

water stress, riparian protection, and catchment restoration. 

The Lake Naivasha Growers Group (LNGG), of which Finlays Horticulture 

Kenya was a founding member in 1997, commissioned a hydrological 

study of the lake catchment to enable a technically substantiated WAP to 

be produced and to formulate a plan to create WRUAs throughout the Lake 

Naivasha catchment. The result of this was the formation of twelve WRUA 

bodies each with its own constitution and administrative structure. 




70 

The Lake Naivasha Water Resource Users Association 

(LANAWRUA) encompasses the area surrounding 

Lake Naivasha itself (shown in red above) and 

includes all the major commercial flower and 

vegetable growers and exporters drawing water 

either directly from the lake or from the aquifer 

immediately north of the lake. 

The LANAWRUA constitution reflects the multistakeholder 

composition of water abstraction in 

its own area which, although dominated by the 

horticultural growers, is an important resource for 

the tourism industry, commercial interests (e.g. 

Kengen – geothermal power production), water 

service providers, the pastoralist community, and 

other individual water users. Thus the LANAWRUA 

committee, of which Finlays is the current chair, 

reflects this breadth of interest and, by nomination 

of two representatives from each sector, prevents any 

single sector dominating the activities of LANAWRUA. 

More recently, an umbrella WRUA organisation has 

been formed, also chaired by Finlays, and represented 

by the twelve catchment WRUA chairmen, to 

communicate areas of common concern and interest. 

Since LANAWRUA was able to draw on more commercial 

resources, it has assisted the less resourced WRUAs 

to pursue their own objectives and to enhance their 

capacity to manage their associations. 




LANAWRUA 

The early work undertaken by LNGG on the hydrology of the lake ultimately resulted in 

the production of a Water Allocation Plan for the catchment. This was widely discussed by 

stakeholders and has now been adopted by WRMA as part of the process to designate the 

catchment and the lake as a protected area to reinforce the provisions of the Water Act. 

In partnership with WRMA, LANAWRUA undertook a survey to identify all the points of 

water abstraction throughout the catchment to assist with demand analysis and regularise 

authorisations (water permits) and to enhance revenue collection. The latter is a key responsibility 

of the WRUAs to assist WRMA and create a source of income for them to run their associations 

by charging a premium for their services. 

Finlays has partnered with Marks and Spencer and WWF to develop a shared risk strategy 

to identify social and economic criteria to prioritise water allocation. In addition we have 

participated in a pilot study with the Alliance for Water Stewardship, also part funded by 

Marks and Spencer, to test the applicability of a code of practice to determine the compliance 

of private sector water users to the principles of water stewardship. 

Lake Naivasha Water Resources Users’ Association 

Individuals 

Irrigators 

Executive Committee (12 members) 

Two Members elected to the Executive Committee from each category 

Lake Naivasha Basin WRUA’s 

In the last two years, 

LANAWRUA has 

succeeded in partnering 

with NGOs such as WWF 

and CARE to undertake 

projects to improve land 

use practices and raise 

awareness of riparian 

protection and 

catchment restoration. 

Pastoralists Commercial users Tourist operators 

Water service 

providers 

Observer members 

Lake Naivasha Basin Umbrella WRUA (LaN BUWRUA) 

LANAWRUA Upper Malewa 

Upper Gilgil 

Wanjohi 

Middle Malewa 

Turasha/Kinja 

Mukungi/Kitiri 

Lower Malewa 

Middle Gilgil 

Lower Gilgil 


Mariba 

Karati/Longonot



72 

Finlays Horticulture Africa Water 

m 3 - millions 

7 

6 

5 

4 

3 

2 

1 

0 

2007 2008 2009 2010 

Reused Litres/kg flowers 

Net water Litres/kg veg 

450 

400 

350 

300 

250 

200 

150 

100 

50 

0 

Per unit of production 

The management and financial resources provided by 

Finlays in support of furthering the public and private 

sector partnerships in the Lake Naivasha catchment is 

part of an ongoing commitment to provide a leadership 

role in watershed management in the communities in 

which we operate. 






Carbon 5% reduction per unit No change 5 

Water 5% reduction per unit Flowers 4.9% reduction per unit 

Fresh Produce 2.1% per unit reduction 

Overall reduction 4.6% 

Energy 5% per unit of production Reduction of 9.1% per unit 


Waste 20% reduction to landfill Reduction of 87% to landfill 

Total waste increased due to disruption 

due to volcanic ash 



Carbon Investigate use of catalysts to improve coal 

heat production 

Decrease green waste delivered 

Continued reduction in Energy use 

Water Increase rain water harvesting 

Increase recycling 

On-going improvement to water management 

systems to be phased into all sites 

Energy Install low energy lighting 

Increase staff awareness 

Research into green waste in energy generation 

Waste Continue programme of analysing and 

reducing waste 

5% reduction in scope 1 & 2 

5% reduction in water abstracted 

Increase in recycled water to 12% 


10% overall reduction 


0% to Landfill 


5 

5 

3 

3

Governance 

5.1 Group Operating Companies 

74 

James Finlay Limited 

James Finlay (Kenya) Limited 

Finlay Beverages Limited 

Finlay Extracts Limited 

Finlay Tea Solutions UK Limited 

Finlay Hull Limited 

Finlay Vietnam (ME) DMCC 

James Finlay (Blantyre) Limited 

James Finlay Tea Trading (Lanka) Limited 

Xiamen James Finlay Ltd 

Omniflora Blumen Center Gmbh 

Yunnan Taikoo Flowers Ltd 

Taikoo Young Plants (Yunnan) Limited (50%) 

Hapugastenne Plantations PLC (91.8%) 

Newburgh Green Teas (Pvt) (54%) 

Udapussellawa Plantations PLC (91.5%) 

Finlays Colombo PLC (96.7%) 

Finlay Properties (Pvt) Limited 

Finlay Cold Storage (Pvt) Limited 

Finlay Rentokil (Ceylon) Limited 

Finlay Airline (Agencies) Limited 

Finlay Insurance (Brokers) Limited 

Finlays Linehaul Express (Pvt) Ltd (50%) 

Finlay Tea Solutions US Inc 

Finlays Horticulture Holdings Ltd 

Finlays Horticulture South Africa (Pty) Ltd 

Finlays Horticulture Kenya Ltd 

Finlays Horticulture Tanzania Ltd 

Skytrain Limited 

Finlays Fresh Produce UK Ltd 

Finlay Flowers BV 

Finlay Flowers UK Ltd 

FV SeleQT BV (51%) 


Governance 

5.2 Legal Form and Governance 

Finlays was founded in Scotland 

in 1750. James Finlay & Co. was a 

partnership until 1909 when a private 

company was incorporated as James 

Finlay & Company Limited, before 

being floated on the Glasgow Stock 

Exchange in 1924. The Company 

was re-registered as a public limited 

company, styled James Finlay PLC, 

in 1981. Acquired by John Swire & 

Sons Limited in 2000 when it was 

renamed James Finlay Limited, the 

Company is now a subsidiary of 

Finlay Group Limited which in turn 

is a wholly-owned subsidiary of 

John Swire & Sons Limited. 

Main Board 

The Main Board, which is tasked with 

organisational oversight and setting 

strategy, comprises five Executive 

Directors responsible for various 

aspects of the business, two 

Non-Executive Directors representing 

the shareholder, John Swire & Sons 

Limited, and three Independent 

Non-Executive Directors. 


Name Title 

Merlin Swire Non-Executive Chairman 

Ron Mathison Executive Director – Group Managing Director 

Paul Henson Executive Director – Group Finance Director 

Duncan Gilmour Executive Director – Director Corporate Affairs 

& Company Secretary 

Nev Davies Executive Director – Plantations Director 

(Retired 1 st July 2011) 

Martin Hudson Executive Director – Chief Executive Officer: 

Finlays Horticulture Holdings Ltd 

James Hughes-Hallett Non-Executive Director 

Stuart Strathdee Independent Non-Executive Director 

Giles Weaver Independent Non-Executive Director 

Isabella Wemyss Independent Non-Executive Director 

The Chairman of the Board is 

Merlin Swire who is a Non-Executive 

Director and the Finance Director of 

the Company’s parent, John Swire & 

Sons Limited. 

Divisional Boards 

Each Division is overseen by either a 

legal or a management board comprising 

senior executives and representatives 

of the Main Board. Like the Main Board 

these meet quarterly. 

Sri Lanka 

In Sri Lanka, the Group operates 

through three publicly-listed companies 

in which it has controlling stakes. The 

Boards of these companies, in addition 

to the representation referred to above, 

also include a number of Independent 

Non-Executive Directors. They are fully 

compliant with corporate governance 

regulations applying in Sri Lanka. 

Internal Audit 

The Group has an extensive Internal 

Audit function which is monitored by a 

series of committees which report to a 

Group Audit Committee comprising two 

Independent Non-Executive Directors 

and one representative of John Swire 

& Sons Limited. 

In addition, the Managing Director, 

Financial Director and Director 

Corporate Affairs, who acts as 

Secretary to the Committee, also 

attend the Group Audit Committee 

meetings together with the Group 

Internal Auditor and, when required, 

a representative of our external 

auditors, KPMG LLP. 

75

Governance 


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 and 

ensuring recommendations for the 

improvement of internal controls 

made by internal and external 

auditors have been implemented. 

• Reviewing all risk management 

processes including policies 

around health and safety, fraud 

and competition compliance. 

• Reviewing the external auditors’ 

independence, proposed audit scope 

and annual performance as well as 

the level and nature of co-operation 

between internal and external audit. 

• Monitoring the timing of 

management’s response to 

recommendations made by the 

internal and external auditors. 

• Reviewing planned internal 

audit activities and considering 

their adequacy. 

• Reviewing Group Internal Audit (GIA) 

structures to ensure they provide the 

basis for an independent and objective 

opinion on risk management, control 

and governance. 

• Reviewing the effectiveness of the 

Group’s systems for monitoring, 

addressing and reporting on 

compliance with laws and regulations. 

• Monitoring the integrity of the 

company’s financial statements 

and reviewing significant financial 

reporting issues and judgments 

contained therein. 

76 

Other Committees 

A number of functional Committees are 

in place at both Group and Divisional 

level. These cover a range of issues 

including Health and Safety, Sustainable 

Development, Human Resources and IT. 

Policies and Procedures 

A series of policies and procedures 

have been developed with the aim of 

making all employees fully aware of 

their responsibility for ensuring that 

the Group conducts its business in 

accordance with applicable laws and 

regulations. These include a Group 

Corporate Code of Conduct and a 

Whistleblowing Policy designed to 

ensure that good governance 

is maintained across the Group. 

A series of Guidance Notes have been 

issued to employees on such matters 

as competition compliance and the 

provision of the UK Bribery Act 2010. 

All relevant staff have also been given 

appropriate training. 

Each Business Unit maintains a Risk 

Register which is updated at least 

twice per annum and the main board 

formally reviews the consolidated 

Group Risk Register annually. 

Employee Forums 

Throughout the Group, a range of 

employee forums are in place as 

appropriate. This includes Trade 

Union recognition where this has 

been agreed as being the best medium 

for liaison between the employees and 

management. A variety of other internal 

communications vehicles are also 

used to facilitate interaction between 

management and employees, such 

as employee feedback forums, 

conferences, workshops, magazines 

and newsletters. 


Governance 



Appendix (i) 

Swire Group Sustainable Development Policy 

As a wholly owned subsidiary of 

the Swire Group, Finlays adheres to 

all Group policies. The sustainable 

development policy is based on two 

fundamental principles: 

• Long term value creation for our 

shareholders depends on the 

sustainable development 14 of our 

businesses and the communities 

in which we operate. 

• We wish to excel as corporate citizens. 

Our policy 

• Industry leadership: We will work 

with others to promote sustainable 

development in the industries in 

which we operate. 

• In our operations: We will meet or 

exceed all legal requirements and: 

78 

- Be a good steward of the natural 

resources and biodiversity 

under our influence and ensure 

that all potential adverse impacts 

of our operations on the 

environment are identified 

and appropriately managed. 

- Operate as far as is reasonably 

practicable in a manner which 

safeguards the health and safety 

of all our stakeholders. 

- Strive to be an employer of choice 

by providing an environment in 

which all employees are treated 

fairly and with respect and can 

realise their full potential. 

- Favour suppliers and contractors 

who promote sustainable 

development and encourage the 

responsible use of our products 

and services by our customers 

and consumers. 

- Promote good relationships with 

the communities of which we are a 

part and enhance their capabilities 

while respecting people’s culture 

and heritage. 

Making it happen 

• All companies in which the Swire 

group has a controlling interest will 

have action plans for applying this 

policy in a way which is relevant to 

their business. We will encourage 

other companies in which we have an 

interest as a shareholder or through 

our supply chain to implement 

similar policies. 

• We will encourage and empower our 

staff to be proactive on sustainable 

development matters both at work 

and in the community. 

• We will monitor our performance 

and report it regularly. 

• We will review this policy periodically, 

having regard in particular to 

stakeholder dialogues. 

Both Swire and Finlays are 

signatories to the Copenhagen 

Communiqué in support of more 

stringent climate change regulation. 


Appendix (ii) 

Performance Data 

Data corresponds to EN3, EN4 EN8, EN10, EN16, LA1, LA7. Given the partial coverage of data 

across all businesses only summary information has been provided above. It is the intention 

to report fully against GRI indicators in subsequent reports. 

The reporting carbon protocols are in line with guidelines set by WRI/WBCSD GHG reporting 

initiative (the GHG protocol). Fertilisers will be included in 2011. 

Energy Gj’s 

Group Total11 direct renewable 

direct non-renewable 

indirect non-renewable 

indirect Renewable 

Finlays Tea Estates12 13 direct renewable 



indirect renewable 


Extracts 14 

direct renewable 




Finlay Beverages direct renewable 




Finlays Colombo direct renewable 





(UK and Europe) 





Finlays Fresh Produce (UK) direct renewable 




Horticulture Africa direct renewable 

Taikoo Flowers 

& Young Plants 








2009 2010 Y-o-y (+/- %) comments 

1,145,109 

599,848 

163,636 

122,385 

584,736 

86,432 

38,419 

38,790 

559,544 

105,322 

20,091 

25,426 

0 

9,318 

13,545 

1,455 

0 

20,563 

7,693 

12,032 

0 

2,392 

26,021 

0 

9,559 

828 

372,047 

46,831 

44,681 

5,709 

1,479 

1,524,855 

500,972 

147,809 

127,873 

865,962 

75,141 

30,653 

42,898 

655,212 

66,159 

21,746 

27,090 


0 

10,650 

12,197 

1,310 

59 

17,173 

7,907 

12,368 

8,206 

25,634 

38 

+33% 

-16% 

-10% 

+4% 

+48% 

-13% 

-20% 

+11% 

+17% 

-37% 

+8% 

+7% 

0 

+14% 

-10% 

-10% 

- 

-13% 

+3% 

+3% 

- 

+130%* 

-8%* 

9,746 +2% 

3,584 

321,964 

37,794 

44,207 

1,479 

2,130 

+33% 

-13% 

-19% 

-1% 

-74% 

+44% 

+94,794GJ readjustment 2009 

+102,450 GJ readjustment 2009 

-19,233 GJ readjustment 2009 

-68,332 GJ readjustment 2009 

Inclusion of Mombasa trading 

2009 & 2010 

+513GJ readjustment 2009 

+2601 GJ readjustment 2009 



+2601GJ readjustment 2009 


Omniflora added to 2010 figures. 

Flowers data y-o-y % 2009/2010 for 

Flowers UK only 

Increase in hydro electricity 

contribution in Kericho for Finlay 

Flowers in 2010 

Reduction of 1,174 GJ in 2009 data 

due to removal of fuel used by 3rd 

party contractors

Appendix (ii) 


80 

Carbon Footprint (tonnes CO 2 e) (EN16) 

Finlays Group scope 1 

scope 2 

scope 3 

Total 

Finlays Tea Estates scope 1 

scope 2 

scope 3 


Extracts 16 

scope 1 

scope 2 

scope 3 

Finlay Beverages scope 1 

scope 2 

scope 3 

Finlays Colombo17 scope 1 

scope 2 

scope 3 


50,180 

34,078 

246,937 

4,353 

7,618 

5,630 

7,298 

6,079 

17,900 

428 

2,254 

540 

1,084 

1,385 

89 

50,792 

35,555 

217,431 

4,572 

6,107 

3,731 

5,779 

8,761 

20,093 

543 

2,028 

514 

920 

1,494 

38 

James Finlay Head Office scope 1 

scope 2 

scope 3 162 73 

Finlays Fresh Produce (UK) scope 1 

scope 2 

scope 3 



scope 1 

scope 2 

scope 3 

Horticulture Africa scope 1 

scope 2 

scope 3 



Scope 1 

Scope 2 

Scope 3 

316 

1,292 

151,711 

1,900 

4,057 

69,726 

34,800 

11,393 

1,341 

155 

1,366 

119,588 

2,382 

4,370 

72,505 

36,345 

10,962 

104 

96 

466 

784 

+1% 

+4% 

-12% 

+5% 

-20% 

-34% 

-21% 

+44% 

+12% 

+26% 

-10% 

-5% 

-15% 

8% 

-57% 

-51% 

+6% 

-21% 

+25% 

+8% 

+4% 

+4% 

-4% 

-55% 

+28 tonnes CO e 2009 

2 

+4108 tonnes CO e 2009 

2 

+7661 tonnes CO e 2009 

2 

+1 CO e tonnes 2009 

2 

+4393 CO e tonnes 2009 

2 

+8743 CO e tonnes 2009 

2 

-23 CO e tonnes 2009 

2 

+433 CO e tonnes 2009 

2 

-969 CO e tonnes 2009 

2 

+51 tonnes CO e 2009 

2 

-89tonnes CO e 2009 

2 

-1tonne CO e 2009 

2 

2009 revised double entry of data 

-859 CO 2 e tonnes 

2009 -23 tonnes CO e 2 

2009 +433 tonnes CO e 2 

2009 -969 tonnes CO e 2 


Appendix (ii) 


Waste (tonnes) 

Finlays Group18 reused 

recycled 

recovered 

landfill 

Total waste 

Finlays Tea Estates reused 

recycled 

recovered 

landfill 

Finlay Tea Solutions19 reused 

recycled 

recovered 

landfill 

Finlay Beverages reused 

recycled 

recovered 

landfill 


802 

7,968 

21,717 

3,676 

47,976 

677 

38 

309 

548 

40 

103 

372 

59 

0 

227 

0 

460 


3,629 

6,754 

43,082 

1,790 

1,103 

66 

1,003 

683 

435 

234 

7,248 

281 

317 

0 

388 

+353% 

-15% 

+98% 

-51% 

+63% 

+74% 

+224% 

+25% 

Finlays Colombo No data reported 

Finlays Fresh Produce (UK) reused 

recycled 

recovered 

landfill 



reused 

recycled 

recovered 

landfill 

Horticulture Africa reused 

recycled 

recovered 

landfill 



reused 

recycled 

recovered 

landfill 

0 

1,643 

619 

365 

0 

2,256 

2,568 

13 

22 

3,750 

17,633 

2,230 

15 

216 

1 

1,830 

563 

169 

0 

3,613 

3,282 

0 

2,292 

479 

30,855 

270 

13.5 

131 

- 

- 

- 

- 

+40% 

-16% 

11% 

-9% 

-54% 

26% 

13% 

-100% 

10,506% 

-87% 

75% 

-88% 

-8% 

-39% 

Sri Lanka sites Passara, Nuwara’Eliya 

and Halliela reporting in full for the 

first time. All tea estates numbers 

include the resident population 

Total waste -2% 

Includes Omniflora 

Total waste +43% 

Total waste +43% due mainly to 

closure of European airspace 

following the eruption of the 

Icelandic volcano

Appendix (ii) 


82 

Water m 3 (EN8, EN10) 

Finlays Group net water 

rainwater (of net water) 

total water reused 

Finlays Tea Estates 

(Kenya only) 


Extracts 20 

net water 

water reused 

net water 

water reused 

Finlay Beverages net water 

water reused 

Finlays Colombo net water 

water reused 

Finlays Fresh Produce (UK) net water 

water reused 



net water 

water reused 

Horticulture Africa net water 

rainwater (of net water) 

water reused 



2009 2010 +/-% comments 

8,275,371 

860,923 

516,908 

9,936,906 

715,785 

537,302 

+20% 

+4% 

1,290,440 1,555,732 +20% More accurate sub-metering of 

factory units; numbers include 

domestic water usage on estates. 

49,868 1,704,701 N/A Water data for MMF, SSF (Tea Extracts 

Kenya) has been taken out of 2009 

due to concerns regarding validity 

of data. 

4,953 3,343 -33% 

8,305 

- 

56,183 

10,163 

- 

+22% 

- 

33,514 42,222 +22% 

6,800,318 

516,908 

860,923 

6,484,123 

537,302 

715,785 

-5% 

+4% 

-17% 

Net water 87,973 80,438 -9% 

Revision of net water and recycled 

water figures reported in 2009 due 

improved metering. 

Businesses not included in this report: James Finlay Pakistan, Finlay Flowers BV, Tea Trading offices in Malawi, Indonesia, 

China, USA and Dubai are only included in the report on Carbon. 

12 Revision to 2009 report with inclusion of Taikoo, Omniflora and Mombasa data. 

13 Tea Estates figures in 2009 report showed only Kenya numbers in table. Both Kenya and Sri Lanka numbers are now displayed for 2010 

14 Biomass spent leaf used in boilers is not recorded 

16 Data revised 2009 in Perillon carbon database. 

17 Revised figures including furnace oil at Haldamullah and revision of actual 2009 data 

18 Overall increase of waste 22%,now includes reporting of Taikoo Flowers, Omniflora, Finlay Flowers BV, Sri Lanka Tea Estates and 

Tea trading in Mombasa 

19 Notes: Includes Mombasa Tea Trading office. Extracts Kenya numbers have been excluded from the data for 2009 due to inconsistencies 

in the data set 

20 Commissioning of new products in Saosa factory (SSF) involved more usage that was not factored into the budget. The water usage per 

unit looks high due to the water used for cooling processes. The old Mara Mara factory (MMF) did not have a closed system for ‘cooling 

water’, in contrast to SSF where water for cooling is recycled in a closed system. This explains why water usage for MMF was much higher 

when compared to SSF. We have estimated that roughly 1,338,099 m3 of water used in MMF was used for cooling duties. Metering in 

MMF was only installed in 2010. The approximations for MMF in previous years are questionable. We therefore only include 2010 data 

in the sustainability report. In 2011 targets have been set to meter the volume of water used for cooling. In the case of MMF, water for 

cooling enters and leaves the factory in the same state and does not need treatment (technically leaving the factory unused). The value 

significantly inflates the water usage (per unit basis) which is why we recommend not reporting water usage per unit this year. 2011 water 

usage per unit should go down due to the recycled closed system for cooling. Reporting per unit water usage will then make more sense 

and will be revisited for 2011 data. 


Finlays is committed to creating a sustainable future. 

It’s the only future we have.

Sustainability Report 2010 - Finlays

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