Climate Change Data

Suntory Global Spirits

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:935 ktCO2e (Scope 1, 2, and 3)
Scope 1 Emissions:215 ktCO2e
Scope 2 Emissions:0 ktCO2e
Scope 3 Emissions:720 ktCO2e
Renewable Energy Share:100% renewable electricity across direct operations
Carbon Intensity:0.55 ktCO2e/kl (Intensity) for Scope 1 and 2; 1.91 ktCO2e/kl (Intensity) for Scope 1, 2 and 3

ESG Focus Areas

  • Nature Positive
  • Consumer Positive
  • Community Positive
  • Doing Business the Right Way

Environmental Achievements

  • 10% reduction in water usage rate across operations; 15,652m3 of water replenished in water-stressed watersheds
  • ~3% absolute reduction in Scope 1 and 2 greenhouse gas emissions
  • 197,000 trees planted around the world
  • 88% recyclable primary packaging by volume across portfolio
  • Maker's Mark became a zero waste-to-landfill distillery

Social Achievements

  • 37% women in leadership positions globally
  • 1.5% increase in diverse representation in the US
  • 88% average participation rate in company-wide engagement pulse surveys
  • 12,260 volunteer hours donated globally
  • 20 employer-of-choice awards in 12 countries
  • $5 million invested in responsibility-led programming
  • 28 million people reached through Drink Smart campaign in Japan

Governance Achievements

  • Results of a voluntary pay equity study confirmed Beam Suntory is an Equal Pay Employer
  • Inclusion of Proof Positive sustainability metrics in the Annual Incentive Plan

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero carbon emissions across our value chain
  • Replenish more water than we use in our direct operations in water-stressed watersheds by 2040
  • Work only with growers that use regenerative and sustainable practices by 2040
  • Use 60% recycled materials by weight across our packaging portfolio by 2040
Medium-term Goals:
  • Reduce Scope 1 and 2 greenhouse gas emissions from direct operations by 50% by 2030
  • Reduce Scope 1, 2 and 3 greenhouse gas emissions by 30% by 2030
  • Achieve 50% women in leadership positions globally by 2030
  • Build a US workforce that reflects the diversity of the communities where we live and work by 2030
  • Use 100% recyclable packaging across our portfolio by 2030
  • Use 100% rPET or bio-based materials in PET bottles by 2030
  • Use 40% recycled materials by weight across our packaging portfolio by 2030
  • Invest $500 million and engage more than 300 million LDA consumers in responsibility-led programming by 2030
  • Provide macro-nutritional and alcohol content information on packaging or online for 100% of products by 2030
  • Develop, introduce and build awareness of lower- and no-ABV products and cocktail recipes across key categories by 2030
  • Give back one million volunteer hours to the communities where we live and work by 2030
Short-term Goals:
  • Increase current female representation by 13% for senior leadership positions and US racially and ethnically diverse representation by 8% by 2025

Environmental Challenges

  • Increased Scope 1, 2 and 3 greenhouse gas emissions due to increased production and slower decarbonization rates throughout the value chain
  • Decreased glass cullet availability impacting total recycled content in packaging
  • Regulatory restrictions in some markets preventing label modifications for nutritional information
Mitigation Strategies
  • Investing in lower-carbon solutions and collaborating with key suppliers on decarbonization strategies
  • Exploring closed-loop recycling programs and partnerships to increase glass recycling and cullet access
  • Adding consumer information to packaging as redesigns occur in high-volume markets and brands

Supply Chain Management

Supplier Audits: Annual audits focusing on human rights, workplace safety, and environmental protection

Responsible Procurement
  • Supplier Code of Conduct and Ethics
  • Global Procurement Policy
  • Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products; regenerative agriculture practices

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: SFI (Sustainable Forestry Initiative) for Independent Stave Company (Bourbon barrels)

UN Sustainable Development Goals

  • SDG 6 (Clean Water and Sanitation)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 13 (Climate Action)
  • SDG 15 (Life on Land)
  • SDG 3 (Good Health and Well-being)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 11 (Sustainable Cities and Communities)
  • SDG 12 (Responsible Consumption and Production)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Lower- and no-ABV products; sustainable packaging designs

Awards & Recognition

  • 20 employer-of-choice awards in 12 countries

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:908,125 tCO2e (Scope 1, 2, & 3)
Scope 1 Emissions:207,232 tCO2e
Scope 2 Emissions:0 tCO2e
Scope 3 Emissions:700,893 tCO2e
Water Consumption:5,382,704 m3
Carbon Intensity:0.45 tCO2e/kl (Scope 1 & 2)

ESG Focus Areas

  • Water
  • Climate
  • Forest and Field
  • Packaging
  • Consumer Information
  • Responsible Drinking
  • Diversity, Equity and Inclusion
  • Community Engagement
  • Supplier Diversity
  • Health and Safety
  • Human Rights

Environmental Achievements

  • 48% less water used in operations since 2015
  • 20% reduction in Scope 1 and 2 carbon emissions since 2019
  • 27,510 trees planted in 2023; 435,051 trees planted since 2019
  • 89.6% of packaging designed for recycling (target 100% by 2030)
  • Regenerative agricultural practices used on more than 17% of land used to produce crops

Social Achievements

  • 37% women in leadership roles (up from 33.2% in 2020)
  • Introduced a 60/40 hybrid work policy
  • Benefit enhancements for employees including paid time off for pregnancy loss, cosmetic services for gender-affirming surgery, and market-leading family planning services
  • 9,964 volunteering hours in 2023
  • 2.5% of global spend with diverse suppliers

Governance Achievements

  • Inclusion of Proof Positive sustainability metrics in the Annual Incentive Plan (AIP) for the second consecutive year
  • Achieved 70% of direct spend managed through Sedex
  • Consistently positive reputation with employees, suppliers, and owners

Climate Goals & Targets

Long-term Goals:
  • Replenish more water than used in direct operations in high-risk watersheds by 2040
  • Protect and improve watershed sustainability through Natural Water Sanctuary initiatives by 2040
  • Achieve net-zero carbon emissions throughout the value chain by 2040
  • 100% recyclable packaging by 2030
  • 100% rPET or bio-based materials in PET bottles by 2030
  • 40% recycled materials by weight across packaging portfolio by 2030
  • 100% of key ingredients sourced from regenerative agriculture practices by 2040
  • Achieve 1 billion LDA impressions by 2040 with responsibility-led programming
Medium-term Goals:
  • Reduce Scope 1 and 2 greenhouse gas emissions by 50% by 2030
  • Reduce Scope 1, 2 and 3 greenhouse gas emissions by 30% by 2030
  • Achieve 50% women in leadership positions globally by 2030
  • Build a US workforce reflecting the diversity of communities by 2030
  • Achieve an industry standard of 10% of spending with diverse suppliers by 2030
  • Give back one million volunteer hours by 2030
  • Achieve 600 million LDA impressions by 2030 with responsibility-led programming
Short-term Goals:
  • Reduce water usage rate by 50% per unit produced by 2030

Environmental Challenges

  • Reducing Scope 3 carbon emissions (from suppliers)
  • Increasing the use of recycled materials in packaging
  • Establishing a strong supplier diversity program
  • Decreased availability of waste glass for use in manufacturing
  • Combating harmful drinking
Mitigation Strategies
  • Sustainability workshops for suppliers
  • Virtual power purchase agreement (VPPA) and supplier consortium in North America
  • Support for largest glass supplier to invest in new furnace technology
  • Development of an rPET strategy
  • Donation to Workwell Industries for glass-processing equipment
  • Collaboration with IARD to set high standards in marketing and sales

Supply Chain Management

Supplier Audits: 70% of direct spend managed through Sedex

Responsible Procurement
  • Supplier Code of Conduct and Ethics
  • Sedex membership requirement for suppliers
  • SMETA audits

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

  • Goal 6: Clean Water and Sanitation
  • Goal 7: Affordable and Clean Energy
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 8: Decent Work and Economic Growth
  • Goal 10: Reduced Inequalities
  • Goal 17: Partnerships for the Goals

The Proof Positive strategy aligns with these SDGs through various initiatives described in the report.

Sustainable Products & Innovation

  • Suntory ALL-FREE
  • Sipsmith FreeGlider
  • Lemon Sour Zero
  • Highball Zero

Awards & Recognition

  • Great Place to Work® in USA, India, China, Korea, Australia and New Zealand
  • Top 100 Great Mid-Size Workplaces in India
  • Best Workplaces in FMCG – Food & Beverage in India
  • Fortune Best Workplaces in Manufacturing & Production in USA
  • Best Workplaces for Women in Korea
  • Diversity & Inclusion Vision Award in Taiwan
  • 100 on the Human Rights Campaign Foundation’s Corporate Equality Index