Marketing Report
Carlsberg cut brewery carbon emissions by 12 per cent in 2020, report

Carlsberg cut brewery carbon emissions by 12 per cent in 2020, report

The Carlsberg Group’s Sustainability Report 2020 shows solid progress towards the targets set out in its Together Towards ZERO plan, stating its continued commitment to tackling the global challenges the company faces.

 In a year dominated by the pandemic, Carlsberg reported a 7% decrease in relative carbon emissions across its total value chain – the beer-in-hand footprint – from 2015 to 2019, and across its breweries a 12% reduction in relative carbon emissions and 7% improvement in water efficiency since 2019.

Reducing carbon across the value chain: The company has collaborated with partners and suppliers across every step of the value chain – including raw ingredients, packaging and refrigeration – to identify, trial and roll out more sustainable solutions. This has resulted in a 7% reduction in the relative beer-in-hand footprint – total value chain emissions – from 2015 to 2019. It is on track to achieve 15% by 2022 and 30% by 2030.

The brewer’s leadership in climate action has been acknowledged by the global environmental non-profit organisation CDP with a place on its prestigious “A List”. Recognising the increasing risk of climate change to businesses and communities across its regions, it has published the first disclosure according to the Task Force on Climate-related Financial Disclosures (TCFD) reporting framework in the Annual Report 2020.

This builds on the foundation created in 2017, when it worked with the Science Based Targets initiative to become one of the first businesses to set targets aligned to the more ambitious goal of the Paris Climate Agreement, to limit global warming to 1.5°C.

Protecting shared water resources in priority areas: In 2020, Carlsberg launched a partnership with Desolenator in India to create 20,000 litres of water a day for a town of 4,000 people using the world’s first solar thermal sustainable water purification technology.

In Vietnam, its partnership with local authorities to improve the infrastructure will bring fresh water to around 20,000 people.

Brewing with lower emissions and less water: A further three breweries achieved carbon neutrality in 2020, bringing the total to eight. And from 2019 Carlsberg reduced carbon emissions per hl of beer produced at its breweries by 12% and water use by 7%. The company says it is sharing and implementing best-practice efficiency measures across the Group and trialling innovative technology, such as the total water recovery plant at our Fredericia brewery in Denmark, which will make it world-class in water efficiency, reducing water use from 2.9 to 1.4 hl/hl.

Supporting communities hit by the pandemic: In its markets across the world, Carlsberg has transformed brewery production lines to produce alcohol for hand sanitiser, donated equipment and alcohol-free beverages to support healthcare workers, and ran campaigns to support the hard-hit hospitality sector.

In addition to corporate contributions to support people affected by COVID-19, Carlsberg teams around the world raised funds for local organisations, and the Carlsberg Foundation, New Carlsberg Foundation and Tuborg Foundation, donated a total of DKK 109m during the crisis to support research, arts, culture and civil society.

Increasing availability of alcohol-free brews: Increased availability of alcohol-free options is vital to provide consumers with an alternative choice. 100% of Carlsberg international premium brands and a third of all brands now offer alcohol-free options. And in 2020 sales volumes of alcohol-free brews grew by 11%.

Improving information and engaging consumers: The right information helps consumers make an informed decision. Across Carlsberg markets,it secured over 90% compliance with the Digital Guiding Principles and engaged 22.5 million consumers through campaigns on Global Beer Responsibility Day.

Creating a safety culture: In a challenging year, Carlsberg brought in strict measures to ensure the safety and wellbeing of employees at its breweries and offices around the world. Through a continued focus on safety culture,the company achieved a 19% reduction in our accident rate, and over 11,000 drivers) completed online training on road safety.

Contributing to economies: Carlsberg business and products play an important role in economies, supply chains and communities around the world. In 2020, the company directly employed more than 40,000 people around the world and created indirect employment for around 1.09 million people throughout its supply chain, including in the hard-hit hospitality sector. Carlsberg generated economic value of around DKK 85bn – 11% lower than in 2019 – highlighting the need for governments to support brewing and related sectors.  

Cees t’ Hart, CEO, Carlsberg Group: “2020 was a challenging year for our business, our customers and our people all around the world. At Carlsberg, we continued our efforts to help communities in this challenging time, while working to reach our ambitious targets to cut carbon and water waste. We will not let COVID-19 throw us off course. We’re on track to meet our 2022 targets, and since 2015 we’ve reduced our brewery emissions by 39%, cut our beer-in-hand footprint by 7%, and brought down our water use by 18% for every hectolitre of beer produced.”