CSR REPORT 2014 GROWING RESPONSIBLY TOGETHER Carlsberg Group CSR Report 2014 Contents 2 CONTENTS APPENDICES 3 Message from our CEO 39 Section 1: Materiality assessment 5 About this report 40 Section 2: Data summary table 6 Our CSR strategy 44 Section 3: Independent assurance report 7 Our CSR framework 45 Section 4: Global Reporting Initiative table 8 Resources & Environment 51 Section 5: Reporting process and scope 20 Health & Well-being 53 Section 6: Definitions 29 People & Policies 54 Section 7: List of reporting sites Editor Carlsberg Group Corporate Affairs Design and production Kontrapunkt Proofreading Borella projects Carlsberg Group CSR Report 2014 CEO statement 3 In 2014, we continued the to align them more closely with existing recycling rates. In a number of markets, we MESSAGE pursuit of our strategic objective social challenges: Resources & Environment, involved our consumers at sponsored music to integrate corporate social Health & Well-being and People & Policies. festivals by conducting campaigns to avoid We are making good progress on improving waste from packaging. FROM OUR responsibility (CSR) throughout our impact related to each of these themes, our business functions and but at the same time recognise that we are Our environmental efficiency decreased CEO Group companies. on a journey and that across our different slightly in 2014, partly as a result of inte- regions there are areas where we need to grating newly acquired breweries into the further improve. reporting scope as well as reduced produc- tion. However, I am pleased to see that We executed on our global priorities, imple- Resources & Environment: many of our breweries continued to improve mented local projects and initiated a number optimising resource effectiveness their overall efficiency ratios. Our environ- of new commitments to guide our work go- Global challenges such as climate change, mental efficiency figures still show us to ing forward in both the short and long term water scarcity and land degradation will be one of the most efficient global brewing for the benefit of all our stakeholders. increasingly require a strong, collaborative companies, but we will continue to drive response. Increasing demand for consumer further improvements in the coming years. In the Carlsberg Group, we are committed goods, combined with resource scarcity, to making decisions that have a positive places further demands on businesses to use Outside our breweries, we continued impact on our business and the communi- materials more efficiently and to remain pro- to address environmental challenges in ties in which we operate. Our ambition is to fi table. At Carlsberg, we want to play our role collaboration with key partners. Good grow responsibly while enhancing quality of in addressing these challenges, both within examples were our continuing work within life for our consumers, our employees and our breweries and across our supply chain. the partnership with UNIDO in Russia, the other stakeholders. In recent years, we have introduction of climate-tolerant barley in worked to make CSR an integrated part of Within packaging, in particular, we have our agro projects with farmers and our our day-to-day business operations. As such, significant opportunities to reduce our collaboration with Water Benefit Partners we create shareholder benefits through CSR environmental impact, lower our cost base to develop a new approach to collective Jørgen Buhl improvements that have led to better risk and make more effective use of our materi- action on water scarcity. Rasmussen management, increased (cost) efficiency, als, thereby transforming waste into value. new business opportunities and enhanced Throughout 2014, we continued to imple- Health & Well-being: consumer support for the category. ment our sustainable packaging programme promoting responsible drinking aimed at increasing material efficiencies Beer consumed in moderation and in the right However, we are facing increasingly tough and obtaining cost savings. At the World context can be part of a healthy, balanced Our collaborative model has economic, social and environmental chal- Economic Forum in Davos, we launched lifestyle. We are proud that our products are helped us to improve our lenges to our business across our supply a partnership-driven initiative called the associated with celebration, friendship and impact, but we recognise there chain and in society at large. We believe Carlsberg Circular Community, a platform for enjoyment of life. But there are situations in that through our CSR activities we can help developing the next generation of packag- which beer is consumed irresponsibly by some are areas where we need to to overcome these challenges by collaborat- ing products optimised for recycling, reuse groups of people, causing harm to themselves improve further. ing with others, both within and outside our and innovative upcycling. Locally, our Group and society. In the Health & Well-being sec- industry, to create more effective change. companies continued to drive local sustain- tion, we outline how we continued in 2014 to Jørgen Buhl Rasmussen We are taking steps towards a more col- able packaging. In Poland, we worked with drive our proactive approach to tackling the President & CEO laborative business model and have restruc- three big customers to increase shopper misuse of alcohol and position beer as the tured our CSR priorities under three themes awareness of recycling, leading to improved responsible choice. We started to deliver on Carlsberg Group CSR Report 2014 CEO statement 4 our industry-wide and company-specific com- a year of zero lost-time accidents. Across the SUSTAINABLE PACKAGING mitments related to high-risk areas such as Group, our lost-time accident rates improved underage drinking, drinking and driving, and by 9%, giving a 42% improvement over the helping consumers to make informed choices. past three years. These commitments translate into local activ- ities in our markets, such as the Drink with Highly regrettably, though, six contractors lost >6.4 billion Respect campaign in Denmark. their lives while working for our companies. glass bottles refilled Our thoughts go to their families and we ac- People & Policies: knowledge that every accident and fatality living by our CSR policies is one too many. To underline this, we are RESPONSIBLE DRINKING We remain committed to integrating the developing more comprehensive standards in principles of the UN Global Compact into our contractor management implemented as part 115 global campaigns to daily business. Our efforts to ensure that of the Group-wide health & safety strategy. our CSR policies are globally implemented promote responsible drinking and observed are at the core of this com- Looking ahead, I believe we have implement- mitment. We updated our Business Ethics ed a number of initiatives, both globally and carried out Policy and initiated a Group-wide awareness locally, that will help us to build resilience into campaign to manage compliance risks. While our business, thereby preparing us for future BREWERY EFFICIENCY we are making progress to build a stronger growth in an environment of heightened compliance culture across our organisation, global challenges. Correspondingly, we have this remains an area where we need to con- made slight adjustments to our commitments tinue to concentrate our efforts, as currently and targets in order to better align them with we operate in areas around the world where our business cycle through to 2017. 5% business ethics risks are common. improvement in relative CO2 emissions compared with 2013 In 2014, Carlsberg participated as a founding As we grow our business, this will impact partner in the creation of the digital media on our footprint, but it will also provide platform “Collectively”. This seeks to drive CARLSBERG CIRCULAR COMMUNITY opportunities to use our world-class know- conversation and action on sustainability ledge to improve the performance of newly in order to inspire and accelerate the shift 6 partners have joined the acquired businesses. towards more sustainable behaviour – which will in turn have a positive impact on our Carlsberg Circular Community A main focus in 2014 was to improve our businesses. This and other collaborations environmental and safety management in the will increasingly guide the way we work in acquired operations of Chongqing Brewery the global marketplace. Moving forward, we HEALTH & SAFETY Group in China. We used our Group’s exper- will increasingly focus on the longer term by tise, deploying internal experts from our local working more closely with our consumers and companies to conduct environmental and other partners. health & safety audits and identify areas for improvement in these new breweries. It was encouraging to see that many Group com- panies recorded excellent safety results; for example, in June Carlsberg India completed Jørgen Buhl Rasmussen 9 % improvement in lost-time accident rate across the Group Carlsberg Group CSR Report 2014 About this report 5 ABOUT THIS REPORT: Growing responsibly together Since Carlsberg was founded in 1847, Today, as one of the world’s In our third theme, People & new scope and present a more leading brewing companies, Policies, we concentrate on comparable overview going for- our passion has been to brew quality this passion is stronger than our role as a growing global ward. Throughout the report, we of life for people and society. ever. However, the world is a company that employs more report