Exceeding targets towards a ZERO Carbon Footprint and ZERO Water Waste, delivering concrete results for the business and society. The new ESG program, Together Towards ZERO and Beyond (TTZAB), will build on the strong progress made with new targets and actions towards 2030 and 2040.
When launching the Together Towards ZERO (TTZ) sustainability program, Carlsberg Group was among the first to introduce science-based climate targets aligned with the 1.5°C target in the Paris Agreement on Climate Change. This year, Carlsberg Group reached a milestone when it concluded TTZ and evaluated its performance against the targets set in 2017, with the results published in our ESG Report 2022.
Concluding Together Towards ZERO
In 2017, Carlsberg established a structured and ambitious approach to focus ESG actions on its most material ESG topics – carbon, water, responsible consumption, and health and safety. The resulting ambitions for a ZERO Carbon Footprint, ZERO Water Waste, ZERO Irresponsible Drinking, and a ZERO Accidents Culture set quantitative targets to be achieved by the end of 2022.
From 2015 to 2022, Carlsberg has performed particularly strongly on its environmental agenda, exceeding some of its targets on carbon and water with a 57% reduction in relative carbon emissions and a 31% reduction in relative water use since 2015 and earning a double 'A' rating from global environmental non-profit CDP for transparency and action on these topics.
To have also innovated and grown the alcohol-free category significantly, with 32 new product launches and an increase in sales volumes of 7% in Western Europe for 2022 alone, and 94% since 2015 globally. Overall, performance has been strong across the past five years, and Carlsberg is now in a strong position to continue forward with its even more ambitious TTZAB program.
Reflecting on progress made, Cees ’t Hart, chief executive officer, Carlsberg Group, says, “With the launch of TTZ in 2017, we set a new benchmark within our industry for sustainability. I’m proud of the example we’ve set with Together Towards ZERO and the significant progress we’ve made since 2017, together with our colleagues and value chain partners. In 2022 we took the next step on our journey by launching our enhanced ESG program, TTZAB. We will build on the momentum from our efforts over the past five years to achieve the new expanded and even more ambitious targets we’ve set towards 2030 and 2040.”
To reach the 2022 milestone, Carlsberg has pursued its targets through concrete actions and partnerships across the value chain. The strong performance towards a ZERO Carbon Footprint has been achieved through the elimination of coal, increased use of renewable energies, and innovative solutions – such as extraction of biogas from on-site wastewater treatment plants, renewable and circular thermal energy, to produce lower-carbon beer at 18 breweries.
Strong performance towards ZERO Water Waste has been driven by process improvements and investments in new technologies, with ten sites achieving industry-leading water use efficiency of 2.0 hl/hl or less, three of these being in areas of high water risk. Strong performance towards a ZERO Accidents Culture has resulted from a sharp focus on standard setting, training, and behavior change across the organization.
Progress has been made towards ZERO Irresponsible Drinking, with alcohol-free offerings expanding consumer choices – now available in 90% of Carlsberg's markets (up from 70% in 2021) and amounting to 32 new launches globally in 2022. Furthermore, we had partnerships in 67% of our markets, falling short of our target of 100%, with progress slowed by the COVID-19 pandemic and local on-the-ground implementation.
Continuing forward with Together Towards ZERO and Beyond
Carlsberg will continue forward with its enhanced ESG program, Together Towards ZERO and Beyond (TTZAB), in which it addresses a broader set of material ESG topics through a more holistic approach.
Launched in August 2022, TTZAB builds on the strong progress made since 2017 with a revised set of targets towards 2030 and 2040, including new targets for a ZERO Farming Footprint and ZERO Packaging Waste, as well as shorter-term targets to advance progress on Diversity, Equity & Inclusion.
Through the new program, Carlsberg will also bolster actions and transparency on Responsible Sourcing, Human Rights, the Living By Our Compass compliance program, and Community Engagement.
Hart concludes, "Looking ahead, I’m confident that Together Towards ZERO and Beyond will deliver results for the society and our business, cementing our license to operate and our ability to brew high-quality beers with low environmental impact, now and in the future, as we strive to fulfill our purpose of brewing for a better today and tomorrow."