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2017 Sustainability Report SUSTAINABILITY REPORT 2017 CARLSBERG GROUP SUSTAINABILITY REPORT 2017 IN BRIEF 2 CONTENTS INTRODUCTION OUR AMBITIONS SUPPLEMENTARY IN BRIEF ZERO CARBON FOOTPRINT RESPONSIBLE BUSINESS CEO foreword .............................................................. 3 Introducing our ambition...................................... 11 Live by our Compass.............................................. 45 Purpose and strategy ............................................... 5 Eliminating emissions at our breweries .......... 14 Labour & human rights ......................................... 47 Reducing our beer-in-hand emissions ........... 18 Responsible sourcing ............................................. 49 NEW SUSTAINABILITY PROGRAMME Quality and safety of our products .................. 50 Together Towards ZERO......................................... 7 ZERO WATER WASTE Ambitions and targets towards ZERO ............... 8 Introducing our ambition...................................... 23 ECONOMIC CONTRIBUTION TO SOCIETY Together towards the SDGs................................... 9 Cutting our water waste ....................................... 25 Brewing economic growth, jobs and government revenues ............................................ 52 ZERO IRRESPONSIBLE DRINKING Introducing our ambition...................................... 29 DATA AND ASSURANCE Preventing irresponsible drinking ...................... 31 Data summary table .............................................. 57 Encouraging responsible consumption ........... 36 2015-2017 targets ................................................ 64 Reporting process and scope .............................. 66 ZERO ACCIDENTS CULTURE Global Reporting Initiative table ....................... 68 Introducing our ambition...................................... 39 Definitions .................................................................. 73 Towards a ZERO accidents culture .................. 40 List of reporting sites ............................................. 74 Working towards a safer workplace ............... 42 Tax contribution principles ................................... 76 Independent auditor's assurance report ........ 78 In brief CARLSBERG GROUP SUSTAINABILITY REPORT 2017 IN BRIEF 3 CEO FOREWORD BREWING WITH PURPOSE Sustainability is central to the partnership-driven sustainability. We believe Carlsberg Group’s purpose of our approach is not only good for the planet, but also for business and for society as a brewing for a better today and whole. It increases our efficiency, reduces risks tomorrow. And it is more and builds resilience in our supply chain, while important now than ever. That is resonating with our customers and consumers in an increasingly sustainability-conscious why in 2017 we launched a new world. sustainability programme, Together Towards ZERO, which Last year, we identified the four areas with the raises our sights higher than ever greatest relevance for our business and society: carbon & energy, water, responsible drinking before. and health & safety. Together Towards ZERO states our ambition within each of these areas: The world needs strong, collective action in the ZERO carbon footprint, ZERO water waste, face of complex sustainability challenges such ZERO irresponsible drinking and a ZERO as climate change, access to resources and accidents culture across our business. Under public health concerns. each ambition, we have set measurable targets for 2022 and 2030 respectively. The UN’s Sustainable Development Goals (SDGs) and the Paris Climate Agreement are Why are we setting our sights so high? helping to accelerate change, deepening the Because we feel that only bold targets will commitment of governments, civil society and stimulate the kind of game-changing businesses globally. They highlight how innovation the world needs. We cannot do the important it is for us to work together if we are job alone and “together” is a key element of to succeed in delivering change. our approach. Just as they were in the development of our new programme, Together Towards ZERO is our contribution to partnerships will be crucial for success in its this urgently needed change. It sets new future delivery. In 2017, we joined the RE100, industry standards for science-based and the We Mean Business coalition and the CARLSBERG GROUP SUSTAINABILITY REPORT 2017 IN BRIEF 4 Climate Leaders initiative driven by the World The world will undoubtedly see many changes Economic Forum. We also continued to support between now and the culmination of Together the world’s largest sustainability partnership, Towards ZERO in 2030. However, we are the UN Global Compact, and the determined to demonstrate the crucial role that implementation of its Ten Principles. This business can play not only through job creation report serves as our annual communication on and economic contribution, but also in progress and underlines our commitment to resolving global sustainability challenges, and transparency. we are keen to take a lead. We are confident that our high ambitions and long-term thinking But 2017 was not only about planning. We will set the Group and the societies in which we made concrete progress as well – both operate on a path to success. incrementally and through more radical changes. For example, at our breweries we reduced our water consumption by 3% and our Cees ’t Hart CO2 emissions by 6% compared with 2016. CEO, Carlsberg Group Falkenberg brewery in Sweden now only uses carbon-neutral energy – a milestone on the road towards our global 2030 target - and we reached over 70 million consumers with our responsible drinking campaigns. Within health & safety, we saw a significant reduction in the number of accidents. However, one person was killed in an accident at the gates of one of our Indian breweries. This serves as a sad reminder of the need for constant vigilance as we strive towards a ZERO accidents culture. Our deepest sympathy goes to the family of the deceased person. CARLSBERG GROUP SUSTAINABILITY REPORT 2017 IN BRIEF 5 PURPOSE AND STRATEGY BREWING FOR A Some have to dig deep to find their purpose. For us, it BETTER TODAY has always been there. We pursue perfection every day. We strive to brew better beers; beers that stand at the heart of moments that bring people together. We do not settle for immediate gain when we can create a better AND TOMORROW tomorrow for all of us. We are brewing for a better today and tomorrow. Our founders were driven by an The findings from this assessment, along with ambition to brew for a better global megatrends such as climate change and water scarcity, lie at the heart of our new today and tomorrow. Over 170 sustainability programme, Together Towards years later, we continue to ZERO (see page 7). Our material issues make pursue the same purpose. sense given the nature of our business, which focuses on producing, distributing and selling beer, soft drinks and other beverages. Learn We continue to take a lead in sustainability more about our business model on page 6. because it is central to our purpose and because we sincerely believe it is the right thing View the results of our to do – delivering tangible benefits for our materiality matrix in our 2016 business and for society as a whole. Sustainability Report https://carlsberggroup.com/media/10920/2016 CORE ELEMENT OF OUR STRATEGY -sustainability-report.pdf (p7) Sustainability is embedded in our corporate strategy, SAIL’22, as part of our aim to create ENGAGING WITH OUR STAKEHOLDERS a winning culture throughout the Group. It is We engage regularly with our stakeholders in our ambition to contribute to a better society order to understand what is most important to wherever our beers are brewed and sold. In them – to hear where they think we are doing 2017, we refined our sustainability priorities well and where we need to improve. Annual and refocused our long-term efforts. reputation surveys conducted in our key markets involve consumers, customers, FOCUSING ON THE AREAS THAT COUNT employees and the general public. The findings In 2016, we carried out a materiality from these surveys also feed into our decision- assessment with Business for Social making. Throughout this report, we describe Responsibility (BSR) to identify the most partnerships with other stakeholder groups. important sustainability management topics, risks and impacts for our business. CARLSBERG GROUP SUSTAINABILITY REPORT 2017 IN BRIEF 6 All these inputs inform the Carlsberg Group’s OUR BUSINESS MODEL sustainability decision-making and strategy, for which the Executive Committee (ExCom) ABOUT THIS has ultimate responsibility. REPORT ECONOMIC CONTRIBUTION Naturally, as a global brewer with operations REPORTING SCOPE in over 35 countries and export and licence In 2017, we closed/sold three breweries. These Results against our 2015-2017 targets are activities in over 100 countries, we also make a are therefore excluded from this report. See page described on pages 64-65. 66 for a full overview of the reporting process significant economic contribution to society. and scope. METHODOLOGY AND Our contribution to economic growth is ASSURANCE described on pages 52-56. CONTENT This report references universal and topic- This report is split into three sections covering the related standards in the Global Reporting key issues highlighted by our 2016 materiality GOVERNANCE & RISK MANAGEMENT Initiative (GRI) Sustainability Reporting Our sustainability performance is owned by assessment, which can be found in our 2016
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