Carlsberg Group's New ESG Programme Aims Towards Net-Zero Carbon Emissions By 2040
Carlsberg Group announced the introduction of its new environmental, social, and governance (ESG) initiative, Together Towards ZERO and Beyond (TTZAB), which includes updated targets and new priority areas.
These include a plan to reach net zero carbon emissions across the entire value chain by 2040, from the barley in the fields to the beer in hand. TTZAB is an improvement on the Group's previous ESG programme, Together Towards ZERO (TTZ). Since 2015, TTZ has helped reduce carbon emissions by 40% and water use by 21% per hectolitre of beer.
With the launch of TTZAB, the company has set up a plan to address its most significant ESG issues with milestones in 2030 and 2040.
The company seeks to have net-zero carbon emissions across its entire value chain by 2040. It also wants to be more ambitious and set clear goals in many areas, including water, responsible drinking, diversity, equity, and inclusion, human rights, and community engagement.
Cees ‘t Hart, CEO of Carlsberg Group, says:
“TTZAB is an integral part of delivering on our purpose of brewing for a better today and tomorrow. Whilst we remain committed to the focus areas that we established in 2017, we have expanded the programme to include a wider array of ESG topics and to address the societal challenges impacting the people and communities where we operate.
"With our new programme, we are building on our existing progress and reaffirming our commitment to the collective action needed to stop the excessive increases in emissions the world is facing. We want to enable consumers to enjoy a great beer while leaving the smallest carbon footprint possible. To do this, we leave no stone unturned, from the grain and water that we brew with, to the recycling of empty bottles and cans once you’ve enjoyed your beer. This is the right thing to do, for our business and society”.
The company's corporate strategy, SAIL'27, includes TTZAB as a key way to reduce risks, bring about positive change, and show the company's purpose through clear goals, actions, and results.
Together Towards ZERO (TTZ), the Group's previous ESG programme, has been changed into TTZAB. It still focuses on the areas where the company has the biggest impact. To reach this goal, the group goes beyond by stepping up its efforts to get to ZERO and boosting its efforts to source responsibly, promote diversity, equity, and inclusion, protect human rights, ensure compliance through the Living By Our Compass programme, and work with communities responsibly.
Some of the most important changes to the company's goals have to do with responsible drinking and water. For example, the company now wants a 35% global portfolio share for low-alcohol and alcohol-free beers by 2030, and it wants to make sure that 100% of the water used at breweries in areas with high water risk is replenished by 2030.
With the new programme, the group is also setting goals to reach ZERO Farming Footprint and ZERO Packaging Waste. At the moment, carbon emissions from farming, processing raw materials, and making and throwing away packaging add up to more than 65% of total beer-in-hand emissions.
The use of regenerative agriculture practices, which improve biodiversity, soil health, and the natural sequestration of carbon on farmlands, along with the use of circular packaging solutions, will enable major carbon reductions. For example, growing barley and recycling bottles and cans are both examples of regenerative agriculture practices.
Simon Boas Hoffmeyer, Senior Director Group ESG at Carlsberg Group, says:
“With our new targets, we support an industry transformation towards more sustainable business practices through, for example, shifts in farming practices, sourcing procedures, and product design, as well as the scaling-up of efficient deposit return schemes. Across all our ESG focus areas, we will continue to improve our performance, while increasing disclosure and transparency for all our stakeholders. We will continue to tackle these challenges through a sustained focus on partnerships with suppliers and partners.”
The company's activities to reach its new goals are supported by its approved Science Based Targets, which are in line with the 1.5°C targets in the Paris Agreement on Climate Change, as well as by its memberships in the RE100, the We Mean Business Coalition, the Race to Zero, the Alliance of CEO Climate Leaders, and the WFA's Planet Pledge.
Source: Carlsberg Group