SUSTAINABILITY REPORT 2016 Carlsberg Group Sustainability Report 2016 2 CONTENTS
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SUSTAINABILITY REPORT 2016 Carlsberg Group Sustainability Report 2016 2 CONTENTS Introduction Priority areas Supplementary IN BRIEF ENERGY & CARBON RESPONSIBLE BUSINESS 2016 overview .............................................................. 3 Understanding our carbon footprint .................. 13 Labour & human rights .......................................... 42 CEO foreword ............................................................... 4 Brewing with tomorrow in mind ......................... 15 Responsible sourcing ............................................... 44 Partnership: First glass partnership ................... 18 Live by our Compass ............................................... 45 Developments in sustainable packaging ......... 19 Community engagement with purpose ........... 47 STRATEGY Partnership: Growing our community Product quality & safety ....................................... 48 Sustainability and SAIL’22 ....................................... 5 of innovators ............................................................... 23 Contribute to a better society ................................ 6 Thinking big about the global goals .................... 9 DATA Training for SAIL’22 .................................................10 WATER Data summary table ............................................... 49 Circular mindset in the Carlsberg Group ..........11 Tackling the water challenge ............................... 25 Independent assurance report ............................. 57 Local water stewardship ........................................ 27 Global Reporting Initiative table ......................... 58 Reporting process and scope ............................... 64 Definitions .................................................................... 66 RESPONSIBLE DRINKING List of reporting sites............................................... 67 Approach to responsible drinking ....................... 30 Promoting moderate consumption .................... 31 Partnership: Having fun and staying safe ....... 33 Responsible marketing and consumer information .................................................................. 34 HEALTH & SAFETY Towards a zero accidents culture ....................... 37 Increasing safety at work ...................................... 39 Editor: Carlsberg Group Sustainability Design and production: Operate & SkabelonDesign Sustainability consulting and content: One Stone Advisors Proofreading: Borella projects 2016 overview 42,000 62.6 8.2 90 Number of Net revenue Operating profit Jobs created by every 10 employess DKKbn DKKbn Carlsberg Group employees 20 Partnerships with external organisations to promote responsible drinking These included Night Owls, 17% 9% a Scandinavian volunteer group. Reduction in relative Zero Renewable energy water consumption at our Accidents at over 50% We use a mix of biomass, breweries since 2010 of Group production sites solar power and renewable energy certificates with In 2016, our water efficiency In 2016, more than half of our sites guarantees of origin. improved to 3.2 hl/hl. had an accident-free year. In brief Carlsberg Group Sustainability Report 2016 In brief 4 CEO FOREWORD Charting our course Our Dali brewery is putting clean, renewable energy technologies to work with the installation of over 8,000 solar panels. Cees 't Hart, CEO, Carlsberg Group Sustainability is a subject close to Development Goals gained traction, we were Reflecting on the past year, I am especially This report serves as our annual Communica- ® my heart. It is also central to the excited to initiate research-led relationships proud of the Cradle-to-Cradle certification of tion on Progress and underlines our commit- with expert organisations such as Business for the Kronenbourg 1664 bottle (page 18) and ment to transparency. Carlsberg Group’s purpose “to Social Responsibility, the Carbon Trust and the solar power installation in Dali, China (page brew for a better today and to- WWF. Together, we will hone our sustainability 17). We continued to promote responsible The world promises to be quite a different morrow”. In 2016, we embedded strategy and define new ambitious targets, to drinking, with targeted interventions at the place in 2022, the end year for our SAIL’22 be announced later in the year. heart of our approach. In connection with strategy. Much can happen between now and sustainability in our new Group Global Beer Responsibility Day, I joined the then. However, I am confident that the course strategy, SAIL’22, as part of our Our materiality process highlighted the four Danish volunteer group Night Owls and was we have set puts us in a strong position to con- aim to create a winning culture priority areas with the greatest impact on our impressed by their dedication (page 33). We tinue brewing probably the best beers in the throughout our business. business and society. These are Energy & car- also launched a Group-wide training pro- world, and to make the Carlsberg Group an bon, Water, Responsible drinking and Health & gramme to initiate the cultural transformation even more attractive company for sharehold- safety. I am pleased with the progress we have needed to achieve SAIL’22. ers, employees and society. In the year since SAIL’22 was launched, I have made against our 2016 targets in the first three witnessed many examples of the pioneering areas. However, I cannot say the same about We made investments in a range of sustaina- Cees 't Hart spirit this company was built upon. Our our Health & safety performance. bility programmes in 2016, and I look forward CEO, Carlsberg Group founder, J.C. Jacobsen, was committed to im- to seeing these come to fruition in 2017. They proving brewing and society, giving us the I was deeply saddened to learn of the deaths include developments in sustainable packaging foundation for our purpose. Today, we build on of one Carlsberg employee and four employees and in technologies to reduce our use of water his legacy through our sustainability activities at minority joint ventures and contractors in and increase our use of renewable energy. and contribute to a better tomorrow wherever 2016. Our ultimate ambition is to achieve a In the broader context, the Carlsberg Group our brands are brewed and sold. culture of zero accidents and we are deter- continues to support the UN Global Compact mined to pursue this goal with renewed vigour and the implementation of its Ten Principles. This year, as global initiatives such as the Paris in the coming months and years. Climate Accord and the UN’s 17 Sustainable Strategy Carlsberg Group Sustainability Report 2016 Strategy 5 STRATEGY Sustainability and SAIL’22 With the introduction of our new Only by performing strongly in all these areas Targets, old and new corporate strategy, SAIL’22, will we be able to deliver enhanced value for all Here we report on the commitments made for our stakeholders. 2016 and the actions planned for 2017 to 2016 was in many ways a year ensure progress towards our three-year of transition, not least in the area Create a winning culture targets. However, since we are striving "to of sustainability. A winning culture is needed to underpin brew for a better today and tomorrow", in everything we do. It is about developing a future we will not settle for just three-year team-based, high-performance approach targets. Instead, we are restructuring and Our ultimate goal is to deliver long-term value, combined with individual accountability. Our honing our approach to sustainability, refining and this means making the Carlsberg Group an sustainability work falls within this main our targets and conducting Group-wide even more successful, professional and category and is entitled "Contribute to a better training (page 10) with a longer-term attractive brewer wherever we operate. Our society". It encompasses our four sustainability perspective in mind. Our new sustainability SAIL’22 strategy focuses on how to achieve this priorities (page 6). targets will be announced later in 2017. long-term goal (see below). Strategy Carlsberg Group Sustainability Report 2016 Strategy 6 STRATEGY Contribute to a better society The Carlsberg Group has a new, ability management topics, risks and impacts With the support and input of external part- realisation wherever we have the knowledge restructured approach to for our business. The four priority areas that ners, we are now developing specific targets for and opportunity to do so. emerged as most crucial for our business and each priority to be launched in 2017. sustainability. Underpinning our stakeholders are Energy & carbon, Water, Re- Although new in many ways, Contribute to a licence to brew and operate, we sponsible drinking and Health & safety. Our determination to contribute harmonises better society also builds on the legacy of our regard this as essential to the with the global drive for prosperity with lower founder, J.C. Jacobsen, in that it applies sci- successful implementation of the Focusing on these four priorities, we aim to impact set out in the Paris Climate Accord and ence to make brewing more sustainable. bring about positive change in all the areas the UN’s Sustainable Development Goals Group’s strategy. touched by our business: (SDGs). We believe that business has a leading role to • Contributing to the containment of climate play in developing concepts such as the circular Our new approach change We aspire to live up to these global develop- economy or closed-loop practices to drive pos- In 2016,