SUSTAINABILITY REPORT 2016 Carlsberg UK Sustainability Report 2016 1 CONTENTS Our business Introduction IN BRIEF Where we are: Our business ............................................................................ 1 1,700 Group CEO forward ................................................................ 2 People employed in the UK Operating Offices: Strategy - Contributing to a better society ....................... 3 Northampton UK CEO forward ...................................................................... 3 Leeds 807m Priority areas Brewery: Pints of beer brewed Northampton ENERGY & CARBON Brewing with tomorrow in mind ......................................... 5 Logistics & Warehousing Sustainable logistics .............................................................. 6 National Distribution 4 Developments in sustainable packaging .......................... 6 Of the top 20 beers brands Centre: Northampton in the UK WATER Reducing UK consumption ................................................... 8 Increasing water efficiency ................................................... 8 12.5m Km travelled in delivering RESPONSIBLE DRINKING for our customers Our approach .......................................................................... 10 Regional Distribution Promoting moderate consumption ................................... 10 Centres: Responsible marketing and consumer information .......12 Tingley, Leeds Stonecross, Warrington HEALTH & SAFETY Gravelly Park, Birmingham CEO message .......................................................................... 14 Croydon 2016 Summary ........................................................................14 Depots: Alloa Nashmead Supplementary Bourne Durham Ipswich Southampton RESPONSIBLE BUSINESS Torquay Fair responsible business ..................................................... 17 Community engagement ..................................................... 17 Carlsberg UK Sustainability Report 2016 In brief 2 CARLSBERG GROUP 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 tion on progress and underlines our commit- Carlsberg Group’s purpose “to with expert organisations such as Business of the Kronenbourg 1664 bottle and the solar ment to transparency. for Social Responsibility, the Carbon Trust and power installation in Dali, China. We contin- brew for a better today and WWF. Together, we will hone our sustainabili- ued to promote responsible drinking, with The world promises to be quite a different tomorrow”. In 2016, we embedded ty strategy and define new ambitious targets, targeted interventions at the heart of our place in 2022, the end year for our SAIL’22 sustainability in our new Group to be announced later in the year. approach. In connection with Global Beer Re- strategy. Much can happen between now and strategy, SAIL’22, as part of our sponsibility Day, I joined the Danish volunteer then. However, I am confident that the course aim to create a winning culture Our materiality process highlighted the four group Night Owls and was impressed by their we have set puts us in a strong position to priority areas with the greatest impact on our dedication. We also launched a Groupwide continue brewing probably the best beers in throughout our business. business and society. These are Energy & car- training pro-gramme to initiate the cultural the world, and to make the Carlsberg Group bon, Water, Responsible drinking and Health transformation needed to achieve SAIL’22. an even more attractive company for share- In the year since SAIL’22 was launched, I have & safety. I am pleased with the progress we holders, employees and society. witnessed many examples of the pioneering have made against our 2016 targets in the We made investments in a range of sus- spirit this company was built upon. Our first three areas. However, I cannot say the tainability programmes in 2016, and I look Cees 't Hart founder, J.C. Jacobsen, was committed to same about our health & safety performance. forward to seeing these come to fruition in CEO, Carlsberg Group improving brewing and society, giving us the 2017. They include developments in sustain- foundation for our purpose. Today, we build on I was deeply saddened to learn of the deaths able packaging and in technologies to reduce his legacy through our sustainability activities of one Carlsberg employee and four employ- our use of water and increase our use of and contribute to a better tomorrow wherever ees at minority joint ventures and contractors renewable energy. In the broader context, the our brands are brewed and sold. in 2016. Our ultimate ambition is to achieve a Carlsberg Group continues to support the UN culture of zero accidents and we are de- Global Compact and the implementation of This year, as global initiatives such as the Paris termined to pursue this goal with renewed its Ten Principles. Climate Accord and the UN’s 17 Sustainable vigour in the coming months and years. Carlsberg UK Sustainability Report 2016 In brief 3 STRATEGY reviewing the way we do things, investing in Foreword from technology and resourcing new ideas that Contributing to a our Carlsberg UK can help us to improve our sustainability CEO performance. Our fleet has reported a 23% reduction in accidents, brewery emissions better society Here at Carlsberg UK, are down by 5.2% and our partnership with organisations like Drinkaware is yielding sustainability is a key priority, real results in education and awareness The Carlsberg Group has a that emerged as most crucial for our business driving the way we develop around alcohol misuse. new, restructured approach to and stakeholders are Energy & carbon, Water, our culture, our people and our Responsible drinking and Health & safety. business. It’s also important to note that in relation sustainability. Underpinning our to the environment, even the smallest, licence to brew and operate, we Focusing on these four priorities, we aim to incremental improvement can make a huge regard this as essential to the bring about positive change in all the areas Our sustainability journey since 2010 has difference to our impact and so reductions touched by our business: seen some significant improvements in in our bottle crown weights and fleet fuel successful implementation of the all areas, from environmental impact to savings of 1%, make a valuable contribution Group’s strategy. • Contributing to the containment of climate corporate responsibility. Perhaps most to our ongoing, positive progress. change importantly, our people are fully engaged • Ensuring people have access to water in our sustainability mission; there’s a high However, this year, the news is far from Our new approach • Promoting a healthy lifestyle level of awareness of what sustainability being entirely positive. A serious safety In 2016, we carried out a materiality assess- • Improving workplace safety means to our organisation, why it’s incident at our Northampton brewery led ment with Business for Social Responsibility important and the part we can all to serious injury and tragically, to a loss of (BSR) to identify the most important With the support and input of external play in achieving our goals. life. I will speak more about this later in the sustainability management topics, risks and partners, we are now developing specific report (p.14), in the context of health and impacts for our business. The four priority areas targets for each priority to be launched in In 2016, it’s encouraging to see safety, but clearly, for the families of the 2017. that in many areas we have individuals concerned, for our colleagues continued to push forward, who were involved, and our team, the im- pact will continue to be felt for many years to come. Looking ahead, we are inspired by Group ambitions set out in Sail'22 and look forward to seeing how new targets set to be announced this year will shape our sustainability plans for 2017 and over the coming years. Julian Momen CEO, Carlsberg UK Energy & carbon 7% Reduction in relative carbon emissions 2010 since 2010 5.2% We’re harnessing innovation 2016 to sustain improvement Reduction in relative energy consumption from 2015 to 2016 at our Northampton brewery Achieved in line with strategic choice to reduce production volumes and focus on value 2 Sites with 100% waste diverted from landfill And a cross-company average of 99.5% Carlsberg UK Sustainability Report 2016 Energy & carbon 5 ENERGY & CARBON Brewing with tomorrow in mind Running a brewery that brews Brewing efficiency Across brewing and logistics, our total carbon utility usage when our brewery is running over 800m pints of beer every In 2016, relative CO2 emissions at our emissions in 2016 decreased by 17.2% to 38,391 at reduced production levels and a number year is a huge operation, and we Northampton brewery fell by 5.2% compared tonnes of CO2e. However, in relative terms, of projects are currently being progressed. to 2015, to 5.53kgCO2e/hl. This is extremely total emissions increased by 1.3%, largely Changes to the way in which we organise and recognise that understanding, and pleasing considering our strategic