Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Responsible Drinking
• Health and Safety
• Business Ethics
• Responsible Sourcing
• Community Engagement
• Labour and Human Rights

Environmental Achievements

• Reduced energy use in breweries by 9.3% compared to 2010
• Reduced water use in breweries by 5.6% compared to 2010
• Reduced specific CO2 emissions by 8.6%
• Increased share of renewable energy (approximately 3.1% of thermal energy from renewable sources)
• Commissioned first wastewater recovery plant in India
• Developed a Life Cycle Assessment (LCA) tool to measure the environmental impact of packaging

Social Achievements

• Implemented responsible drinking initiatives in 85% of major markets
• Reduced lost-time accidents by 19%
• Increased training initiatives to integrate UN Global Compact principles
• Invested approximately 50 million DKK in local community activities
• Carlsberg Malawi donated medicine worth USD 1.5 million

Governance Achievements

• Increased training in Marketing Communication Policy (71% of marketing employees trained)
• Implemented a Group-wide whistleblower system
• Rolled out e-learning programme on Business Ethics Policy

Climate Goals & Targets

Environmental Challenges

• Economic uncertainty, rising material costs, challenging Russian market
• Availability of energy sources (alternative to coal)
• Understanding stakeholder needs and business relevance of CSR initiatives
• Global economic challenges impacting HR initiatives and Labour & Human Rights activities
• Cultural complexities in Asia regarding safety awareness
• Need to develop specific Health & Safety procedures for areas beyond logistics and production
• High-risk areas regarding perceived corruption

Mitigation Strategies

• Continued implementation of Lean utility program across the group
• Increased best practice sharing across the group
• Network optimization
• Use of biofuels (woodchips) in some Asian sites
• Stakeholder engagement survey
• Development of audit and compliance mechanisms
• Renewed commitments for 2012 to refocus implementation process
• Improved awareness, knowledge sharing, and performance monitoring
• Focus on contractors' safety and management of H&S risks
• Strengthening internal legal network and sharing best practices
• Global corruption risk assessment

Supply Chain Management

Responsible Procurement

• Carlsberg Group Supplier and Licensee Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 guidelines (2006)

Certifications: ISO 14001 (60 out of 75 sites)

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Null-Lox Barley Malt

Awards & Recognition

• Top five in Newsweek’s Green Rankings
• Baltika Breweries awarded best ‘Personnel Project for HR Changes’
• Aldaris nominated as one of the top three employers in Latvia

Environmental Metrics

ESG Focus Areas

• Environment
• Responsible Drinking
• Marketing Communication
• Health & Safety
• Business Ethics
• Labour & Human Rights
• Community Engagement
• Responsible Sourcing

Environmental Achievements

• Sustained strong water performance of 3.3 hl/hl, maintaining position as the world’s most efficient brewer.
• Reduced energy consumption to 29.1 kWh/hl.
• Reduced CO2 emissions per hectolitre of product produced to 7.3 kg/hl (16.8% less than 2011).
• Launched sustainable packaging programme.
• 13 breweries capturing biogas from wastewater treatment.

Social Achievements

• Reduced lost-time accident rate in production by 16%.
• Reduced days lost rate in production by 14%.
• Invested in more than 1,500 local community engagement initiatives.
• More than 4,000 employees participated in community engagement activities.
• Held 196 business ethics training sessions.
• Partnered with the Danish Confederation of Trade Unions to improve sales promoters’ conditions in Cambodia.

Governance Achievements

• Updated Governance Model, putting CSR higher on the strategic agenda of the Executive Committee.
• Incorporated “reputation” as a strategic lever of the Group’s new business strategy.
• Implemented Third Party Screening Procedures.

Climate Goals & Targets

Environmental Challenges

• Replacing coal with other energy sources to further reduce CO2 emissions.
• Water consumption increased at a number of breweries.
• Implementing Labour and Human Rights Policy with joint venture partners.
• Addressing alcohol misuse.
• Improving conditions for sales promoters in Cambodia.
• Maintaining high level of awareness to continuously control risks that can lead to fatal accidents.

Mitigation Strategies

• Energy efficiency projects at breweries, focusing on Asia and Eastern Europe.
• Equipment upgrades, optimized cleaning procedures, increased use of recycled water.
• Initiatives to ensure compliance with Labour and Human Rights Policy.
• Responsible drinking activities and partnerships to combat harmful use of alcohol.
• Partnership with Danish Confederation of Trade Unions.
• Investments in improvement plans, basic requirements, internal audits, and implementing priority requirements at production sites.

Supply Chain Management

Supplier Audits: 121 audits in 2012

Responsible Procurement

• Supplier and Licensee Code of Conduct embedded in global contracts.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001

Third-party Assurance: KPMG

Awards & Recognition

• Several awards for health & safety achievements in the UK and other countries.

Environmental Metrics

ESG Focus Areas

• Environment
• Responsible sourcing
• Responsible drinking
• Health & safety
• Business ethics
• Labour and human rights
• Community engagement

Environmental Achievements

• Reduced relative primary energy consumption per hectolitre by 1.0 kWh/hl (20.0 kWh/hl in 2013)
• Reduced relative electricity consumption by 0.1 kWh/hl (8.0 kWh/hl in 2013)
• Reduced CO2 emissions per hectolitre of product produced to 7.1 kg CO2/hl (26.8% reduction since 2011)
• 60 out of 75 sites obtained ISO 14001:2004 certification

Social Achievements

• Launched Drink with Respect campaign at Roskilde Festival
• Carlsberg Polska's “Appearances can be deceptive, ID is not” campaign received international recognition
• Invested DKK 47m in local communities
• 7,432 employees volunteered over 23,000 hours in community activities

Governance Achievements

• Elevated Marketing Communication Policy compliance responsibilities to local CEO level
• Implemented third-party screening procedure in Carlsberg Ukraine to mitigate corruption risks
• Integrated Business Ethics Policy into Leadership Competencies Programme

Climate Goals & Targets

Environmental Challenges

• Did not meet 2013 water reduction target
• Unexpected increase in energy consumption at 28 sites
• Water supply and regulatory risks in Asia
• High-to-low carbon energy source shift challenge in emerging markets
• Underage drinking and harmful alcohol consumption

Mitigation Strategies

• Further stress the importance of water savings at breweries
• Investigating reasons for increased energy consumption at 28 sites
• Conducting water risk analysis, focusing on Asian business
• Purchasing renewable power certificates
• Developing responsible drinking action plan, including global and local initiatives
• Strengthening training schemes and making CEOs responsible for Marketing Communication Policy compliance

Supply Chain Management

Supplier Audits: 15 key suppliers audited in 2013

Responsible Procurement

• Supplier and Licensee Code of Conduct
• AIM-Progress engagement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001:2004

Third-party Assurance: KPMG

Awards & Recognition

• Green Apple Gold Award (Carlsberg UK)
• Recognition for safety improvements (Szczecin and Kasztelan breweries)

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)

Environmental Achievements

• Launched the Carlsberg Circular Community initiative to develop sustainable packaging.
• Improved safety record across the Group.

Social Achievements

• Launched a new Responsible Drinking Policy.
• Launched an updated Business Ethics Policy globally and initiated a Group-wide awareness campaign.
• Carried out a human rights impact assessment in Myanmar.

Governance Achievements

• Enhanced the Carlsberg Breweries Group compliance organisation and programme, hiring a Chief Compliance Officer and implementing an enhanced business ethics programme.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment in Eastern Europe (Russia and Ukraine), impacting consumer spending and currency devaluation.
• Fierce competition in most markets, leading to pressure on pricing and trade terms.
• Implementation of the BSP1 supply chain integration project.
• Value realization of recent acquisitions in China.

Mitigation Strategies

• Applied very specific, flexible assumptions and prepared detailed scenario plans for the Russian economy.
• Announced the closure of two breweries in Russia to optimize structure and reduce capital employed.
• Closely monitors risks related to increases in duties in all markets and engages in lobbying efforts.
• Works with a sophisticated value management toolbox to balance volume and value with customers.
• Post-go-live assessment of BSP1 to identify issues and create solutions; accumulating and adapting to lessons learned from past roll-outs; securing key resources across the markets; and reorganizing BSP1 and relevant teams to ensure clear responsibilities.

Supply Chain Management

Responsible Procurement

• Supplier and Licensee Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Next generation of packaging products optimized for recycling, reuse and upcycling

Environmental Metrics

ESG Focus Areas

• carbon
• water
• responsible drinking
• health & safety

Environmental Achievements

• reduced coal usage by 28% compared with 2017, representing a 78% reduction since 2015
• added a new 1 MW rooftop solar installation at our brewery in Lithuania
• new biomass boiler at our Čelarevo brewery in Serbia reduced relative carbon emissions at the site by 22%
• launched the Snap Pack, which will reduce plastic usage by up to 76%, equivalent to 1,200 tonnes of plastic per year

Social Achievements

• rolled out our new Life Saving Rules programme across the business
• reached 1,500 leaders with health & safety training

Governance Achievements

• launched a single global online platform covering all codes, policies and manuals

Climate Goals & Targets

Environmental Challenges

• increasing commodity prices (barley, malt)
• fierce competition and trade term pressure
• legal and regulatory compliance risks (competition law, data protection, anti-bribery & corruption)
• risks associated with partnerships
• industry consolidation
• political and economic instability

Mitigation Strategies

• value-based approach across all markets to achieve a positive price/mix
• strengthening the Group-wide control framework covering all legal compliance areas
• ongoing dialogue with partners
• SAIL’22 initiatives to improve core beer business and drive craft & speciality and alcohol-free brews
• closely monitoring markets and hedging
• further strengthening core business in mature markets, premiumising portfolio, and expanding geographic footprint

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Third-party Assurance: PwC

Sustainable Products & Innovation

• Snap Pack
• new coating on refillable glass bottles
• new caps that remove oxygen
• Cradle to Cradle Certified™ ink

Environmental Metrics

ESG Focus Areas

• carbon
• water
• responsible drinking
• health & safety

Environmental Achievements

• reduced CO2 emissions by 13%
• reduced water usage by 3%

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• tough comparables in Western and Eastern Europe
• intensified competitive environment in Russia
• more volatile business environment including the current coronavirus outbreak in China

Mitigation Strategies

• executing SAIL’22 priorities
• reinforcing Funding the Journey culture
• driving efficiencies and executing tight cost control

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Responsible Drinking
• Health & Safety

Environmental Achievements

• Reduced relative brewery carbon emissions by 12%
• Reduced relative brewery carbon emissions by 39% since 2015
• Reduced full relative value chain (beer-in-hand) emissions by 7% since 2015
• Reduced water consumption by 7% in 2020 and 18% since 2015

Social Achievements

• Supported local communities in the fight against COVID-19 (production of hand sanitizer, donations, etc.)
• Reduced lost-time accident rate by 19% to 3.0

Governance Achievements

• Updated materiality assessment
• Became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted business, particularly the on-trade channel
• Supply chain disruptions
• Changes in consumer behavior
• Economic instability/recession
• Partnerships
• Legal and regulatory compliance
• Cyber and IT security
• Tax

Mitigation Strategies

• Three priorities: protecting people, protecting earnings and cash, and preparing for the rebound
• Cost reduction efforts (OCM toolkit)
• Strengthened communication and safeguarded employee well-being
• Supported on-trade customers with digital solutions
• Developed alternative sourcing strategies
• Short-term and flexible planning
• Strengthened Group-wide control framework
• Strengthened IT security organization
• Updated Tax Policy

Supply Chain Management

Responsible Procurement

• Investing in next-generation crops (high-yielding barley varieties)

Climate-Related Risks & Opportunities

Physical Risks

• Land degradation
• Hot, dry weather
• Intense rainfall

Reporting Standards

Frameworks Used: UN Global Compact, TCFD

Third-party Assurance: PwC

Environmental Metrics

ESG Focus Areas

• carbon
• water
• responsible drinking
• health & safety
• diversity and inclusion

Environmental Achievements

• reduced CO2 emissions per hl of beer produced by 2% to 4.2 kg CO2/hl (40% reduction since 2015)
• reduced water use by 4% to 2.7 hl/hl (21% reduction globally and 35% at high-risk sites since 2015)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on markets
• substantial increases in input costs

Mitigation Strategies

• higher revenue/hl
• continued tight focus on costs
• efficiency initiatives
• cost reductions
• Operating Cost Management (OCM) toolkit

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• ZERO Carbon Footprint
• ZERO Water Waste
• ZERO Irresponsible Drinking
• ZERO Accidents Culture
• ZERO Farming Footprint
• ZERO Packaging Waste
• Diversity, Equity and Inclusion
• Living By Our Compass
• Human Rights
• Responsible Sourcing
• Community Engagement

Environmental Achievements

• Reduced CO2 emissions by 57% per hl of beer produced since 2015 (exceeding the 50% target for 2022)
• Eliminated coal from breweries
• Sourced 92% of electricity from renewable sources globally in 2022
• Reduced water consumption per hl of beer produced by 31% since 2015 (exceeding the 25% target for 2022)

Social Achievements

• Launched responsible drinking campaigns reaching over 15 million people
• Increased recycled content in PET plastic bottles
• Implemented the Brightmile app to improve driver safety, resulting in a 24% decline in risky driving behavior in Malaysia

Governance Achievements

• Established an ESG Steering Committee
• Expanded the Carlsberg Sustainability Advisory Board
• Linked executive remuneration to performance on TTZAB targets

Climate Goals & Targets

Environmental Challenges

• Energy crisis leading to some breweries switching from natural gas to oil, increasing carbon emissions
• Pandemic and local implementation challenges resulting in fewer responsible drinking partnerships than targeted
• Death of an associate employee in a traffic accident
• Challenges in obtaining construction permits for water purification projects

Mitigation Strategies

• Investing in renewable energy and efficiency measures
• Extending the target for responsible drinking partnerships to 2030
• Reviewing health and safety procedures and accelerating training on Life Saving Rules
• Seeking alternative locations for water purification projects

Supply Chain Management

Supplier Audits: 147 integrated quality audits in 2022

Responsible Procurement

• Supplier & Licensee Code of Conduct
• Sustainability criteria in purchasing decisions
• Encouraging suppliers to adopt science-based targets and switch to renewable energy

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Flooding
• Extreme weather

Transition Risks

• Increased regulation of the alcohol industry
• Rising input costs
• Climate-related supply constraints

Opportunities

• Development of energy-efficient products
• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (guidance only), UN Global Compact, EU Taxonomy (voluntary disclosure), Greenhouse Gas Protocol, TCFD, UN Sustainable Development Goals

Certifications: ISO 14001:2015 (71 sites), ISO 50001 (12 sites), ISO 9001 (all European sites and 92% of Asian sites), GFSI-recognized schemes (all major European breweries and 87% in Asia)

Third-party Assurance: PwC (limited assurance on selected data)

UN Sustainable Development Goals

• 2
• 3
• 5
• 6
• 7
• 8
• 10
• 12
• 13
• 14
• 15
• 16
• 17

The TTZAB program supports these SDGs through various initiatives detailed in the report.

Sustainable Products & Innovation

• Alcohol-free brews
• Fibre Bottle

Awards & Recognition

• Global Water Awards 2022 (Fredericia brewery’s water recycling plant)

Environmental Metrics

ESG Focus Areas

• ZERO Carbon Footprint
• ZERO Farming Footprint
• ZERO Packaging Waste
• ZERO Water Waste
• ZERO Irresponsible Drinking
• ZERO Accidents Culture
• Promoting Diversity, Equity and Inclusion
• Living By Our Compass
• Respecting Human Rights
• Sourcing Responsibly
• Engaging Communities

Environmental Achievements

• Achieved a 16% reduction in value chain carbon emissions from 2015 to 2022.
• Cut total brewery emissions by a further 6% in 2023 (57% since 2015).
• Reduced water use to 2.5 hl per hl of beer produced in 2023 (31% reduction since 2015).

Social Achievements

• Achieved the target of 30% women in senior leadership roles.
• Reduced lost-time accident rates by 25% in 2023.

Governance Achievements

• Implemented a new global Parental Leave Policy.
• Introduced measures to remove bias from hiring processes.
• Rolled out mandatory training to tackle sexual harassment.

Climate Goals & Targets

Environmental Challenges

• Achieving net ZERO value chain emissions by 2040 requires transformative change across operations and the value chain.
• Reducing absolute carbon emissions while growing the business, particularly in Asia.
• Increasing the share of regeneratively grown raw materials.
• Increasing collection and recycling rates for packaging.
• Replenishing 100% of water consumed at breweries in high-risk areas by 2030.
• Expanding the availability of alcohol-free brews to 100% of markets by 2030.

Mitigation Strategies

• Partnering with suppliers, customers, consumers, and communities.
• Investing in renewable energy sources and energy efficiency measures.
• Collaborating with farmers to adopt regenerative agricultural practices.
• Working with suppliers on more sustainable packaging solutions.
• Establishing partnerships with NGOs to protect and restore water resources.
• Expanding the range of no- and low-alcohol brews.

Supply Chain Management

Supplier Audits: 48 audits in 2023 (including 8 requested by Carlsberg)

Responsible Procurement

• Supplier & Licensee Code of Conduct
• Supplier risk assessments and audits
• Third-party screening for bribery and trade sanctions risks

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Water scarcity

Transition Risks

• Carbon pricing
• Regulatory changes

Reporting Standards

Frameworks Used: GRI G4 (guidance), CDP, CSRD (preparing for), Danish Financial Statements Act, EU Taxonomy, Greenhouse Gas Protocol, SBTi, TCFD, UN Global Compact, UN SDGs, UN Women’s Empowerment Principles

Certifications: ISO 14001 (71 sites), ISO 50001 (12 sites)

Third-party Assurance: PwC

UN Sustainable Development Goals

• 2
• 3
• 5
• 6
• 7
• 8
• 10
• 11
• 12
• 13
• 14
• 15
• 16
• 17

TTZAB programme supports various SDG targets.

Sustainable Products & Innovation

• Alcohol-free brews
• New barley variety reducing energy use in malting and brewing

Awards & Recognition

• Global Water Awards Industrial Project of the Year (2023)