Sustainable packaging in Carlsberg Group CBS Green Week Simon Hoffmeyer Boas, Senior CSR Manager Group CSR and Public Affairs September 23d 2013 Agenda 1. Introduction to Carlsberg Group & CSR 2. Sustainable packaging in Carlsberg Page 2 This is Carlsberg Group today No. 1 in Northern & Eastern Europe and fourth largest brewer in the world 150 500 41,000 36,000,000,000 Markets around different beer employees on bottles of beer sold in 2012 the world brands three continents 3 Founded in 1847 on a passion for beer, science and art 1847 JC Jacobsen founds the Carlsberg Brewery on a hill outside of Copenhagen 1868 Carlsberg has international ambitions from the beginning and Exports it’s first barrel of beer to Scotland JC Jacobsen has great ambitions for his brewery and to make sure his beer is brewed to the highest scientific standards he establishes the in 1868 Carlsberg Laboratory. 1882 JC’s son Carl Jacobsen builds his own brewery next to his father’s and calls it ”New Carlsberg”. 1904 The famous Carlsberg logo is designet by architect Thorvald Bindesbøll. This logo Carl Jacobsen has a great passion for art and architecture and creates is still used today. many spectacular buildings for his brewery. One of these is the impressive Elephant Gate welcoming visitors to his brewery. 4 The Carlsberg Group has undergone big changes in recent years 1990 Carlsberg is an international beer brand but mainly through export and licensed brewing MALAWI OPERATIONS IN Denmark, UK and Malawi. Minority ownerships in Finland, Italy and Malaysia + 50% ownership 0-50% ownership Joint ventures 5 The journey to becoming an international company begins – few leading positions globally 1999 MALAWI ACQUISITIONS Sweden, Finland, Italy, Portugal, Lithuania, Poland, Croatia, Turkey, Nepal, Sri Lanka and Vietnam + 50% ownership 0-50% ownership Joint ventures 6 Merger with Orkla (Norway) and joint venture in BBH 2001 MALAWI ACQUISITIONS Norway, Sweden, Switzerland, Poland, Turkey JOINT VENTURES + 50% ownership BBH (Russia, Ukraine, Belarus and Baltic countries) is a joint venture between 0-50% ownership Carlsberg Breweries (owned by Carlsberg and Orkla) and UK brewer Joint ventures Scottish & Newcastle 7 Further acquisitions in Europe and Asia and increased shareholdings in BBH through buy-out of Orkla’s shares 2004 MALAWI ACQUISITIONS Norway, Germany, Serbia, Croatia, Bulgaria, Nepal, Western China, Laos, South Korea, Malawi + 50% ownership JOINT VENTURES BBH (Russia, Ukraine, Belarus, 0-50% ownership Kazakhstan and Baltic countries) is now a joint venture between Carlsberg Joint ventures Breweries and UK brewer Scottish & Newcastle 8 Acquisition of Scottish & Newcastle gives majority ownership of BBH, France, Greece and more 2008 The biggest acquisition by a Scandinavian company MALAWI ACQUISITIONS BBH (Russia, Ukraine, Belarus, Kazakhstan, Uzbekistan, Baltic countries), France, Greece, India, Western China + 50% ownership DIVESTMENTS 0-50% ownership Turkey, South Korea Joint ventures 9 Carlsberg Group today – the world’s fourth largest international brewer 2013 MALAWI ACQUISITIONS Increased shareholdings in China and Vietnam + 50% ownership 0-50% ownership Joint ventures 10 Carlsberg Group owns 4 of the top-10 beer brands in Europe Top 10 Beer Brands in Europe 2012 (million hl) 1 Heineken 12.6 2 Baltika 12.6 3 Efes 9.9 4 Carlsberg 9.2 5 Chernigivske 7.4 6 Amstel 7.0 7 Obolon 6.8 8 Tuborg 6.7 9 Carling 6.5 10 Kronenbourg 6.4 Source: Canadean Wisdom, 22 February 2013 11 THIRST FOR GREAT Great people. Great brands. Great moments. Founded on the motto, Semper Ardens – Always Burning – we never settle, but always thirst for the better. We are stronger together because we share best practices, ideas, and successes. We brand as many, but stand as one. With the courage to dare, to try, to take risks, we constantly raise the bar. We don’t stop at brewing great beer. We brew a greater future – for our consumers and customers, our communities, and our people. This passion will continue to burn and forever keep us thirsty. PEOPLE • Embed a high performance culture • Develop, retain and attract best in class people CONSUMERS, BRANDS • Empower and engage our people & INNOVATION • Iconize Carlsberg • Outperform with winning portfolio of international and local power brands EFFECTIVENESS & • Accelerate scalable, consumer EFFICIENCY relevant innovation • Create an efficient, consumer- and customer-focused organisation • Focus and prioritise to maximise return on investments CUSTOMERS • Continuously develop and implement • Collaborate with customers to Carlsberg Group Ways of Working and drive category growth Best Practices • Create a winning route to market • Win with winning customers in SOCIETY & on- and off-trade REPUTATION • Be the industry benchmark in • Enhance our reputation as a Point-of-Purchase execution responsible global brewer • Integrate Corporate Social Responsibility throughout our value chain • Improve the image of the beer category WINNING We want to win Together we are We are each Our consumers and We are engaged stronger empowered to customers are a the heart of with society BEHAVIOURS make a difference every decision we make The CSR Journey in the Carlsberg Group ACHIEVING THE TARGETS Create new targets Implement sustainable packaging programme Redefine environmental leadership position 2013 Sharpen communication Create partnerships FOCUSSING THE EFFORTS Develop sustainable packaging strategy Implement Thirst for Beer and RD activities 2012 Follow-up on targets and commitments LOOKING AHEAD Revise CSR strategy and identify value proposition Revisit performance management setup 2011 Increase local focus on Responsible Drinking INTEGRATING CSR THROUGHOUT THE BUSINESS CSR policies implementation & 3-year target setting CSR progress 2009 report published online Carbon Calculator development 2010 Whistle blowing mechanism in place GETTING THE BASICS RIGHT CSR Key priorities identified • Water and CO2 footprint CSR policies developed CSR reporting & management system in place 2009 • CSR performance data collected from all sites. • Assurance has been conducted by KPMG LAYING THE FOUNDATION CSR areas identified Supplier and Licensee Code of Conduct developed Carlsberg Group became a signatory of UN Global Compact 2008 • Signed CEO Water Climate and Caring for Climate Page 13 Executive decision: new CSR organization and governance in place CSR is part of business strategy Carlsberg group strategy Carlsberg CSR vision Carlsberg CSR approach Focus areas for 2013 to support position as the world’s most efficient brewer on water, energy & CO2 emissions SUSTAINABLE RESPONSIBLE GREEN BREWER PACKAGING DRINKING Carlsberg CSR approach Agenda 1. Introduction to Carlsberg Group 2. Sustainable packaging in Carlsberg Page 16 We work with sustainable packaging because it makes business sense for us and our stakeholders • Increased regulation • High environmental impact • Customers requesting partnerships on CSR • Consumers expect industry to solve the issues • Volatile prices • Branded waste 17 The Sustainable Packaging Project has 3 pillars Work stream REDUCE & RECYCLE RETHINK REUSE Performance Awareness and advocacy Innovation improvements Objective “Reduce environmental “Increase awareness of “Accelerate sustainable impact and weight of sustainable packaging packaging innovations primary and secondary and promote recycling and explore new areas packaging” among consumers and to reduce impact” customers” REDUCE weight or change to packaging with lower environmental impact. 20 grams 5-7% 19 Increase REUSE of packaging materials 29,2 % 70% Up to 40 times 20 Encourage consumers to RECYCLE packaging 3000 95% 3 mil. 21 RETHINK packaging and waste Cradle to Cradle® Eco-Effective Eco-Efficient Sustainability 22 Summary • We are integrating CSR into the business Sustainable business development • We take the life cycle impact of our packaging into account when making new packaging • We are working with the Cradle-to-Cradle design perspective to prepare our packaging for re-entry into another life cycle • In Denmark, the brewing industry is taking responsibility through the Dansk Retur System • YOU (the consumers) are key in achieving high environmental standards Page 23 Carlsberg Group CSR Report 2012 available online at: www.carlsberggroup.com/csr 24 .