The Carlsberg Group is committed to eliminating water waste from brewing through world-class efficiency and safeguarding shared water resources in high-risk areas. Although Malaysia is not identified as a high-risk market, we continue to aim for a water waste reduction of 30% by 2022 (3.4 hectolitres per hectolitre produced [hl/hl]), far more than the 25% target for 2022, and are in progress to achieve the targeted reduction of 50% by 2030. Water is a very important resource in our business. Needless to say, without water, there will be no beer. As such, we acknowledge that water is a natural resource that will be impacted by climate change. Water stress is expected to intensify in the near future due to urbanization and the physical impacts of climate change. By 2040, 33 countries will face extremely high water stress, according to the World Resources Institute.

Water is crucial to all manufacturing plants, and even more important to beverage producers. Poor water management can lead to serious implications such as disruptions in production and the supply chain, eventually impacting our business revenue.

For example, the devastating floods in December 2021 greatly impacted economic activities and reduced the economic sector’s production by RM4 billion to RM8 billion. As such, we employ an integrated approach that includes efficiency measures, the safe return of wastewater from our operations and mitigating risk in the supply.


We source our water from tube wells and groundwater, as well as from municipal water. To extract groundwater, we apply for an annual licence from Lembaga Urus Air Selangor (LUAS) and we are billed for each cubic metre extracted. LUAS frequently monitors groundwater extractions to mitigate any negative impact on the environment. Our water-saving initiatives are focused on optimising usage and reducing waste by improving our reverse osmosis operations through the recycling and reuse of filtered water discharge and backwash processes in progress at our water treatment plant.

In 2021, we achieved a significant improvement in our total water consumption due to the completion of the upgrading of our water treatment plant. This RM1.7 million upgrade has helped to reduce water loss by 13%. 

With our upgraded system, we can reduce the 20% wastage by as much as 70%. With the water treatment plant upgraded, we expect to see a continuous reduction in water wastage in 2022.

To date, we are reducing water consumption by 0.8 hl water per hl beer. This equates to equivalent to 46 Olympic-sized swimming pools.


Due to the nature of our business, our operations may cause negative impacts on our water sources if there is no proper water management. Hence, we constantly strive to minimise our water impact throughout the production cycle of our products, from water withdrawal to water discharge. We are committed to protecting the precious natural waterways where we operate by minimising the impact of effluent discharged.

We discharge our wastewater into rivers that are near our operations. We comply with the local rules and regulations and ensure that our effluent discharge is within the permissible limit of 80 mg/L.

This is well below Standard B (200 mg/L) of the Environmental Quality (Sewage) Regulations 2009, which is the standard the Department of Environment expects us to adhere to as a food & beverage manufacturer.

We have in place several measures to curb the COD levels and they include maintaining reactor efficiency and implementing aerobic stage improvements such as replacing conventional surface aerators with diffuser-type aerators to improve efficiency.