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45 About Strategy and Governance Our People Our Business Our Outcome AppendixThe assessment included a review of site sensitivity to soil or groundwater contamination, waste management, risks relating to air emissions, water quality, ozone-depleting substances, and the storage of liquids on site in tanks or other containers. The main risks identified by the ERIA included potential improper handling of hazardous waste, minor oil spills from machinery operations or spills of fuels stored on site, and the usage of refrigerants in air-conditioning systems scheduled to be phased out under the Montreal Protocol. Direct air emissions are insignificant, and our effluents are generally limited to sanitary waste. In summary, the ERIA found that our environmental/climate-related risks and impacts are low or minimal and that measures implemented at our sites were already sufficient to mitigate identified risks. However, it did recommend several small measures to further strengthen our management approach. In line with our striving for continuous improvement set by our HSE policy, several of the recommendations have since been implemented or are targeted for implementation in the foreseeable future.%u2023 GRI 413-1, GRI 413-2Water Conservation and Effluent ManagementWe minimize our impact on the environment by using water in a responsible manner and treating our wastewater properly. Our approach to water and wastewater management is decentralized, allowing our facilities to tailor measures to their specific locations and products. For example, our United Drug (1996) facility in Thailand, which manufactures pharmaceutical and medical products, takes stringent measures to protect people and the environment from wastewater-related risks while meeting regulatory requirements. The existing wastewater treatment plant was upgraded and made more efficient. This new plant entered regular operation in the second quarter of 2023. The new technology has greatly improved effluent quality, chemical and biochemical oxygen demand, and total suspended solids. Reducing Pollution in Our Supply ChainThe DKSH Supply Chain Management Sustainability team spearheaded a variety of initiatives in 2023. In Vietnam, we rolled out three projects that we plan to extend to other markets in the future. Firstly, we deployed five carton-shredding machines, which yielded a remarkable year-to-date return on investment of 73.2 %. These machines shred used carton boxes, which replace plastic fillers in our packaging and help us conserve resources.Secondly, we transitioned to reusing cardboard angle brackets received from inbound shipments, eliminating the need for shrink-wrapping palletized delivery boxes. This shift leads to significant cost savings in terms of shrink-wrap expenses per pallet and streamlines operational processes associated with pallet wrapping but also champions recycling. On average, utilizing traditional shrink wrap for a pallet measuring 50\grams would result in approximately 240 kilograms of CO2e emissions. Resource EfficiencyWaste Management With a comparatively small manufacturing footprint from our Own Brands, we generate limited plastic packaging waste from our products. While we have no influence on the packaging used for our clients%u2019 products, we aim to keep packaging waste in logistics to a minimum.Preparing goods for delivery mostly requires cardboard boxes and plastic film for pallet wrapping. We also generate packaging waste from incoming shipments. Healthcare cold-chain goods need extensive packaging to protect temperature-sensitive items. We already use the recyclable Brillant Box (%u201cB-Box%u201d) in Thailand and the Orca Box in Malaysia. Unlike Styrofoam boxes, these temperature-controlled coldchain boxes can be reused several times and are made of recyclable materials %u2013 making them an environmentally friendly solution for transporting temperature-sensitive products.In 2023, we advanced our efforts to explore sustainable packaging materials. Our Business Unit Healthcare has collected data to better understand the impacts of shifting towards reusable cold-chain boxes. The introduction of more than 6,800 B-Boxes in Thailand since 2019 cut our use of single-use Styrofoam by 21% in 2022 (compared to 2021 levels). In Malaysia, we have introduced more than 900 Orca boxes since 2021, thereby reducing our use of single-use Styrofoam by 11% in 2022 (compared to 2021). Bolstered by these promising figures, our Taiwan and Vietnam markets are currently examining whether they can expand their usage of the B-Box in 2024. In December 2023, the Vietnam market piloted and launched four reusable Olivo Boxes, also made of expanded polypropylene.In addition, our Business Unit Healthcare is exploring ways of transitioning towards FSC-certified packaging for our Own Brands to increase the number of products packed with FSC-certified packaging. This Business Unit is currently evaluating three products in the Thailand, Vietnam, and Myanmar markets to see whether they can be packed in FSC-certified packaging in a pilot project slated for 2024. Please read our Pollution Prevention chapter to learn more about our activities to reduce pollution in our supply chain. We also generate waste from unsold goods, administrative activities (office waste), and IT. After launching the DKSH Guidelines on Waste Management in 2020, our major dis-