Climate Change Data

Monster Beverage Corporation

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:4,238,446 tCO2e/year
Scope 1 Emissions:4,671 tCO2e/year
Scope 2 Emissions:4,677 tCO2e/year
Scope 3 Emissions:3,721,214 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:32,579 MWh/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 97 percent of Monster products were packaged in 100 percent recyclable aluminum cans
  • All new U.S. Monster Energy cold equipment is now ENERGY STAR® rated and free of HFCs.
  • American Fruits & Flavors, LLC, was awarded an EcoVadis® Silver rating.
  • Planning began for installation of solar panels across largest California facilities; expected to save approximately 4,100 metric tons (MT) carbon dioxide equivalent (CO2e) in annual GHG emissions.

Social Achievements

  • Established three regional Equality, Diversity and Inclusion (EDI) working councils
  • Launched four leadership development programs
  • Matched team member contributions to 109 charities.
  • Donated over 1 million cans of beverages to communities

Governance Achievements

  • Welcomed two women to the Board of Directors
  • Bolstered board oversight with quarterly updates to the Audit Committee on ESG considerations.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Set a Scope 1 and 2 reduction target by the end of 2023 in line with a 1.5-degree pathway.
  • Complete a full Scope 3 GHG inventory by the end of 2023.
Short-term Goals:
  • Set a target by the end of 2023 to reduce environmental impacts.
  • Install solar panels on Corona headquarters, Rialto warehouse, and AFF San Fernando site by 2023.

Environmental Challenges

  • Supply chain issues led to some manufacturing taking place outside of certain sales regions, resulting in less efficiency.
  • Durability of packaging using recycled cardboard content remains a challenge.
Mitigation Strategies
  • Regionalized manufacturing operations to reduce costs and transportation distances.
  • Collaborated with supply partners to expand lightweighting efforts and reduce material use in packaging.
  • Working to transition to local production for more than 75 percent of products.

Supply Chain Management

Supplier Audits: 37 audits in 2021 (mostly virtual)

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: LEED, ENERGY STAR

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • True North® Pure Energy Seltzer
  • Monster® Reserve
  • Nalu® Tea Energizers
  • Play® Zero Sugar

Awards & Recognition

  • EcoVadis Silver Medal for AFF

Reporting Period: 2022

Environmental Metrics

Water Consumption:[object Object]

ESG Focus Areas

  • Water Security

Environmental Achievements

  • Reduced biological oxygen demand (BOD) by 80% and total suspended solids (TSS) by as much as 50% from wastewater at the new AFF San Fernando facility through an anaerobic fluidized bed digester system.

Social Achievements

  • CANarchy partnered with Can’d Aid for river cleanups, collecting 200 lbs of trash and engaging nearly 40 volunteers.

Governance Achievements

  • Board-level oversight of water-related issues through the Audit Committee.

Climate Goals & Targets

Long-term Goals:
  • Increase water efficiency methods in operations.
Medium-term Goals:
  • Introduce water-related targets within the next two years.
  • Assess supplier impact on water security within the next two years.
Short-term Goals:
  • Develop a water policy within the next 2 years.

Environmental Challenges

  • Water stress in areas where facilities are located.
  • Potential for supply chain disruptions due to water scarcity.
Mitigation Strategies
  • Engaging with Waterplan to assess water-related risks.
  • Identifying alternative suppliers for ingredients.
  • Implementing water efficiency measures at facilities.
  • Requiring reverse osmosis water for production.

Supply Chain Management

Responsible Procurement
  • EcoBeast platform for sustainability data collection from suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Water scarcity
  • Water quality issues
  • Flooding
Transition Risks
  • Regulatory changes
  • Reputational risks
Opportunities
  • Improved water efficiency
  • Development of water-saving technologies

Reporting Standards

Frameworks Used: CDP Water Security Questionnaire

Reporting Period: 2023

Environmental Metrics

Scope 1 Emissions:15,259 tCO2e
Scope 2 Emissions:10,134 tCO2e (location-based), 10,088 tCO2e (market-based)
Scope 3 Emissions:2,173,452 tCO2e
Renewable Energy Share:2.8% (solar panels)
Total Energy Consumption:269,815 GJ
Water Consumption:402,870 m3 (withdrawal), 150,687 m3 (consumption)

ESG Focus Areas

  • Climate Change
  • Water Stewardship
  • Waste Reduction
  • Diversity, Equity, and Inclusion
  • Employee Well-being
  • Responsible Packaging
  • Supply Chain Sustainability
  • Human Rights
  • Ethics

Environmental Achievements

  • Submitted commitment letter to join the Science Based Targets initiative (SBTi)
  • Installed operational solar panels at four company-owned buildings
  • Anaerobic digestor at AFF San Fernando facility awarded for renewable energy
  • Rolled out three phases of environmental data collection via EcoBeast™ platform
  • Implemented water efficiency improvements at Salt Lake City brewery, aiming for 15% reduction by 2025
  • Reduced CO2 usage per finished barrel by half at Longmont brewery through process improvements

Social Achievements

  • Completed approximately 20,000 hours of training via Monster University
  • Recruited 803 participants in mentorship program
  • Invested in additional roles to support Diversity, Equity and Inclusion (DEI)
  • Supported 2,715 volunteer hours through employee Volunteer Time Off program (U.S. and Canada only)

Governance Achievements

  • Joined Beverage Industry Environmental Roundtable (BIER)
  • Board of Directors maintains oversight of sustainability efforts

Climate Goals & Targets

Medium-term Goals:
  • Set near-term Scope 1 and 2 GHG emissions reduction target by 2026 (SBTi)
Short-term Goals:
  • Reduce water use by 15% at Salt Lake City brewery by 2025

Environmental Challenges

  • Increased GHG emissions due to acquisitions and expansion, and supply chain complexities
  • Water availability and quality challenges due to climate change
  • Aluminum cans responsible for up to 25% of total Scope 3 emissions
  • Challenges in collecting environmental data from suppliers
Mitigation Strategies
  • Developing science-based target for GHG emissions reduction
  • Implementing energy efficiency measures and increasing renewable energy use
  • Adopting Water Stewardship Policy to reduce water use and improve efficiency
  • Working with aluminum can suppliers to reduce emissions
  • Providing support to suppliers for data collection and participation in sustainability initiatives
  • Localizing operations to reduce transportation distances

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Modern slavery risk assessment using STRT

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Increased temperatures
Transition Risks
  • Regulatory changes
Opportunities
  • Energy efficiency improvements
  • Renewable energy adoption

Reporting Standards

Frameworks Used: SASB, TCFD, CDP

Certifications: ENERGY STAR®, LEED Certified Gold (largest HQ building), LEED Certified Silver (Rialto warehouse), Global Food Safety Initiative (GSFI) (96% of co-packers)

Sustainable Products & Innovation

  • Low-sugar and zero-sugar energy drinks
  • Bang Energy® drinks

Awards & Recognition

  • Energy Vision award for anaerobic digestor