ENERGY AND CARBON
Our efforts in reducing carbon emissions and improving energy efficiency across our operations, distribution and entire value chain include investing in clean low-carbon technologies and renewable energy.
Stakeholder Groups Most Concerned:
Government Agencies and Regulators; NGOs, Industry Groups and Local Communities; Investors
Why It Is Important
It has been scientifically proven that emissions from fossil fuels, namely coal, oil and gas, are the biggest contributors to global warming. It leads to an accelerated change of weather patterns and disrupts the natural ecosystem and daily lives. While it is inevitable for our business to contribute to greenhouse gas emissions (GHG), we are aware of the role we can play to help slow down global warming. To this end, we have made achieving zero carbon emissions at our brewery by 2030, and net zero carbon emissions across our entire value chain by 2040, part of our KPIs for operations and we aspire to be the leading company in the industry in climate change mitigation. Our aim is to reduce carbon emissions across our operations, distribution and our entire value chain through strategic measures such as investing in low-carbon technologies and renewable energy.
Refer to Adapting to Climate Change on pages 81-89 for our climate change disclosures
Our Approach
We are guided by our Environmental Policy and guidelines in meeting high standards on energy, emissions, water, waste and packaging. We also benchmark our performance against the Carlsberg Group and other regional breweries, besides setting targets and implementing initiatives and action plans in ensuring the targets are achieved.
Progress/Achievements
In our Malaysian operations, our carbon emissions mainly come from consumption of electricity and natural gas, both of which have been identified as operational KPIs. We consistently strive to optimise the consumption of both resources, which will eventually our carbon emissions. Our 2023 performance is indicated on the next page. Furthermore, we aim to reduce our beer-in hand emissions by 30% by 2030, which involves reducing Scopes 1 and 2 carbon emissions per hl of beer produced. Our 2023 performance is indicated on the charts on the next page.
In 2023, we focused on:
Value Chain Carbon Emissions
Our Malaysian operations' value chain carbon footprint analysis is in accordance with the Greenhouse Gas (GHG) Protocol for Scope 1, 2 and 3 emissions, and our data shown in the graphic above is provided by the Carlsberg Group, as a result of its work with the Carbon Trust in measuring and tracking carbon footprint.
Beginning in 2023, we included all CO2-equivalent (CO2e) greenhouse gas emissions, not just CO2, in our targets and reporting on brewery emissions. Brewery emissions include Scope 1 (direct, such as from burning fuel to generate heat) and Scope 2 (indirect, such as from purchased electricity). Emissions from in-house logistics and distribution operations are excluded from brewery emissions, but they are included in our value chain target.
The analysis of our 2022 footprint showed a 33% improvement from the 2015 baseline. We achieved the most significant reduction – 54% – in production at our breweries where we have most direct control. Key drivers include the purchase of renewable electricity (I-REC) and energy efficiency measures in natural gas usage.
The value chain carbon footprint studies are performed periodically. No value chain carbon footprint studies were conducted in Malaysia in 2023.
Going Forward
Apart from investing in low-carbon technologies, we will continue to explore various ways and alternative methods to reduce our carbon emissions, such as power purchase agreements.
WASTE MANAGEMENT
Our stewardship of the waste resulting from our business operations, including our efforts towards responsible disposal of waste, pollution, brewery effluent and spent grain and the effective treatment of wastewater. As a responsible brewery, it is our duty to manage brewery waste and educate our employees on waste reduction and segregation to intensify our efforts to divert waste from ending up in landfills.
Stakeholder Groups Most Concerned:
NGOs, Industry Groups and Local Communities; Government Agencies and Regulators; Employees
Why It Is Important
Our organisation is committed to improving waste management practices, covering aspects such as waste disposal, brewery effluent and spent grain. We are focused on efficiently treating wastewater to align with our commitment to brew sustainably and responsibly. Our aim is to reduce and divert waste from being sent to landfills, addressing environmental concerns such as global warming and pollution.
Our Approach
Recognising our responsibility as environmental stewards, we are actively implementing measures to minimise our environmental impacts, particularly in reducing emissions.
We actively pursue waste initiatives such as our zero waste to landfill target, through 3R (Reduce, Reuse and Recycle) programmes. By diverting waste from landfills, we aim to significantly reduce greenhouse gas (GHG) emissions such as methane (CH4) and carbon dioxide (CO2), which are the primary contributors to global warming. Our initiatives to cut waste and emissions underscore our commitment to sustainable and circular waste management practices.