Varun Beverages Limited
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:324.40 metric tonnes of CO2e/liter (2021)
Scope 1 Emissions:42,930 metric tonnes of CO2 equivalent (2023)
Scope 2 Emissions:210,408 metric tonnes of CO2 equivalent (2023)
Scope 3 Emissions:581,930 metric tonnes of CO2 equivalent (2023)
Renewable Energy Share:44% (2023)
Water Consumption:6.39 Billion Liters (2023)
Waste Generated:175,292 metric tons of PET bottles (2023)
Carbon Intensity:61.15 grams of CO2e/liter (2023)
ESG Focus Areas
- Environmental Protection
- Inclusion & Diversity
- Community
- Governance
Environmental Achievements
- Reduced water usage ratio from 1.92x in 2020 to 1.54x in 2023 (9% improvement since 2022)
- Recycled 86% of total PET bottles consumed in 2023 (6 percentage points increase over 2022)
- Reduced carbon emissions per liter by 44% compared to 2020 (12% reduction over 2022)
- Generated ~58 Million Units of electricity through renewable sources (176% increase over 2022)
Social Achievements
- Implemented ESG-linked incentive framework for all employees
- 100% return to work and retention rate for permanent employees and workers on parental leave
- Increased training hours: 542,755 in 2023 vs 419,065 in 2022
- Hired 20+ transgender employees
Governance Achievements
- Received PepsiCo’s International Bottler of the Year 2022 Award
- Received Business Excellence (Corporate Governance) of The Year 2022 Award
- Established a crisis management team
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions
Medium-term Goals:
- Reduce GHG emissions by 50% compared to 2020 by 2030
- Increase renewable energy share to 25% by 2030
Short-term Goals:
- Reduce water usage ratio to 1.40x by 2025
- Achieve 100% recycling of used PET bottles by 2025
Environmental Challenges
- Unseasonal rains disrupting sales during peak season
- Evolving consumer health preferences
- Integrating operations of newly acquired territories
- Regulatory risks related to consumer health, taxation, and packaging waste
Mitigation Strategies
- Strategic expansion program (new and expanded facilities)
- Product portfolio diversification (including energy drinks)
- Strong partnership with PepsiCo
- Proactive engagement with government and regulatory authorities
- Sustainability initiatives (water stewardship, waste management, carbon emission reduction)
- Introduction of healthier and zero-sugar products
Supply Chain Management
Supplier Audits: 90% coverage
Responsible Procurement
- PepsiCo’s Global Supplier Code of Conduct
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI
Certifications: ISO 14001, ISO 45001
Third-party Assurance: Deutsch Quality Systems (India) Private Limited
Sustainable Products & Innovation
- 100% rPET bottles
Awards & Recognition
- PepsiCo’s International Bottler of the Year 2022
- Business Excellence (Corporate Governance) of The Year 2022 Award
- PepsiCo’s Best Bottler in Africa-Middle East-South Asia region (2022)
- PepsiCo’s ‘Better’ category sustainability award (2022)
- Best Corporate Governance Practices award (2023)