Carlsberg Group targets net zero carbon emissions by 2040 as part of new ESG programme

Carlsberg Group has launched its new Environmental, Social and Governance (ESG) programme, Together Towards ZERO and Beyond (TTZAB) which contains updated targets and new focus areas. These include a roadmap to achieve net zero carbon emissions across the entire value chain by 2040, from the barley in the fields to the beer in hand. TTZAB is an evolution of the Group’s previous ESG programme Together Towards ZERO (TTZ), which has delivered strong progress, including 40% reduction in carbon emissions and 21% reduction in water use per hectolitre of beer since 2015.

With the launch of Carlsberg Group’s new ESG programme Together Towards ZERO and Beyond (TTZAB), the company has laid out a roadmap to address its most material ESG topics with milestones in 2030 and 2040.

The company aspire to achieve net zero carbon emissions across the entire value chain by 2040, while also raising ambition levels and sharpening targets for other topics such as water, responsible drinking, diversity, equity & inclusion, human rights, and community engagement.

Cees ‘t Hart, chief executive officer of Carlsberg Group, says, “TTZAB is an integral part of delivering on our purpose of brewing for a better today and tomorrow. Whilst we remain committed to the focus areas that we established in 2017, we have expanded the programme to include a wider array of ESG topics and to address the societal challenges impacting people and communities where we operate."

"With our new programme, we are building on our existing progress and reaffirming our commitment to the collective action needed to stop the excessive increases in emissions the world is facing. We want to enable consumers to enjoy a great beer while leaving the smallest carbon footprint possible. To do this, we leave no stone unturned, from the grain and water that we brew with, to the recycling of empty bottles and cans once you’ve enjoyed your beer. This is the right thing to do, for our business and society."

TTZAB is embedded into the company’s corporate strategy, SAIL’27, as a key mechanism for mitigating risks, driving positive change, and demonstrating the company’s purpose through concrete targets, actions and results.

Building on Together Towards ZERO (TTZ)

TTZAB is an evolution of the Group’s previous ESG programme, Together Towards ZERO(TTZ), and maintains focus on the areas in which the company has the most material impact. To this end, the Group moves Beyond, by reinforcing its actions towards ZERO while bolstering initiatives to source responsibly, promote Diversity, Equity & Inclusion, protect Human Rights, ensure compliance through the Living By Our Compass programme and engage communities responsibly.

Some of the most notable target evolutions - besides achieving net zero carbon emissions across the value chain by 2040 - pertain to the company’s ambitions on responsible drinking and water, where it now targets a 35% global portfolio share for low-alcohol and alcohol-free brews by 2030, and replenishment of 100% of water consumed at breweries located in areas of high water risk by 2030.

The new ZERO’s

With the new programme, the Group also adds targets to achieve a ZERO Farming Footprint and ZERO Packaging Waste. Currently, carbon impacts associated with agriculture and the processing of raw materials, as well as the production and disposal of packaging, together amount to more than 65% of total beer-in-hand emissions*. The implementation of regenerative agriculture practices – which enhance biodiversity, soil health, and natural carbon sequestration on farmlands – alongside the implementation of circular packaging solutions, will enable critical carbon reductions, from growing barley to recycling bottles and cans.

Simon Boas Hoffmeyer, senior director Group ESG at Carlsberg Group, says, “With our new targets we support an industry transformation towards more sustainable business practices through, for example, shifts in farming practices, sourcing procedures, and product design, as well as the scaling-up of efficient deposit return schemes. Across all our ESG focus areas, we will continue improving our performance, while increasing disclosure and transparency for all our stakeholders. We will continue to tackle these challenges through a sustained focus on partnerships with suppliers and partners.”

The company’s activities, in pursuit of its raised ambitions, are further supported by its approved Science Based Targets, which are aligned with the 1.5°C target in the Paris Agreement on Climate Change, as well as its memberships in the RE100, the We Mean Business Coalition, the Race To Zero, the Alliance of CEO Climate Leaders and the WFA's Planet Pledge.

* Scope 1, 2 and 3 emissions.