Anheuser-Busch InBev To Reduce Carbon Emissions In Logistics By 15%
Anheuser-Busch InBev (Euronext:ABI) (NYSE:BUD) today committed to a new global environmental goal to reduce the company’s carbon emissions in logistics operations by 15% by the end of 2017. In support of the new goal, the company will implement a variety of innovative measures and expand proven best practices across its global operations. AB InBev estimates that collective logistics improvements could result in up to 200 million USD in savings by the end of 2017.
This new target adds to AB InBev’s existing global environmental goals covering water use and agricultural development; energy and greenhouse gas emissions; and materials and recycling. First-year progress was reported in AB InBev’s 2013 Global Citizenship Report “Raising the Bar Together,” published in April.
The announcement coincides with AB InBev’s 6th global celebration of the United Nations Environment Programme’s World Environment Day (WED). In 2013, more than 67,000 employees led and participated in 1,043 projects around the world. This year’s celebration is expected to be larger, with breweries taking part in an annual internal competition to promote best-practice sharing. Local markets will also host activities, including watershed cleanups, recycling initiatives and educational events with local partners.
“Aspiring to be the brewing industry leader in sustainable logistics helps advance our dream to be the Best Beer Company Bringing People Together For a Better World,” said Carlos Brito, CEO of Anheuser-Busch InBev. “This new goal builds on our strategy to look beyond our brewery walls as we continue to drive reductions in the impact of our supply chain and pursue partnerships to improve performance globally.”
Human activity generates greenhouse gas emissions of around 50,000 mega-tons of carbon per year, and about 5.5% of that – an estimated 2,800 mega-tons – is contributed by the logistics and transport sector, according to the World Economic Forum.1
The new global goal to reduce the carbon emissions in the company’s logistics operations includes inbound transportation, outbound transportation and warehousing. In terms of outbound transportation, the reduction represents about 230,000 tons of carbon emissions in total. This is equivalent to the annual energy needed to power almost 21,000 homes in the U.S.2. The goal is measured against a 2013 baseline.
A series of new initiatives aims to reduce transportation- and logistics-related energy consumption. This includes the use of alternative fuels, smart driving tools and trucks designed to maximize efficiency. AB InBev will continue to drive collaboration with its supply chain partners to expand proven best practices like shared transportation programs already in place in the U.S. and Brazil.
A model for the new global target is the Lean & Green program sponsored in the Netherlands by Connekt, an environmental institution, and in Belgium by the Flemish Institute for Logistics. The program, which was piloted in Europe with local teams, achieved approximately 3,100 tons of emissions reductions over two years and is expected to reduce carbon dioxide output by 14,000 tons over the five-year program. These results inspired the global goal, which will drive the adoption of similar logistics improvement strategies in other countries.
2013 Global Environmental Goal Progress
In addition to the new global logistics target, AB InBev also reported progress on the global environmental goals that it aims to achieve by the end of 2017.
1. Reduce water risks and improve water management in 100% of our key barley growing regions in partnership with local stakeholders.
- Pilot programs are underway in all key regions.
2. Engage in watershed protection measures at 100% of our facilities located in key areas in Argentina, Bolivia, Brazil, China, Mexico, Peru and the United States, in partnership with local stakeholders.
- Started in 20% of the company’s facilities.
3. Reduce global water usage to a leading-edge 3.2 hectoliters of water per hectoliter of production.
- Reduced water use ratio to 3.35 hectoliters of water per hectoliter of production, which amounted to a 5.2% reduction over the previous year.
Energy and Greenhouse Gas Emissions
4. Reduce global greenhouse gas emissions per hectoliter of production by 10%, including a 15% reduction per hectoliter in China.
- Achieved a 3.1% reduction globally, and an 8.8% reduction in China.
5. Reduce global energy usage per hectoliter of production by 10%.
- Achieved a 3.4% reduction in the first year.
6. Reach a 70% global average of eco-friendly cooler purchases annually.
- Reached a 16.3% average in 2013.
Materials and Recycling
7. Reduce packaging materials by 100,000 tons.
- Achieved a reduction of 48,000 tons, almost halfway to the goal.
Learn more about AB InBev’s sustainability initiatives and Better World work at http://bit.ly/ABIBW.
About Anheuser-Busch InBev
Anheuser-Busch InBev is a publicly traded company (Euronext:ABI) based in Leuven, Belgium, with American Depositary Receipts on the New York Stock Exchange (NYSE:BUD). It is the leading global brewer and one of the world’s top five consumer products companies. Beer, the original social network, has been bringing people together for thousands of years and our portfolio of well over 200 beer brands continues to forge strong connections with consumers. This includes global brands Budweiser®, Corona® and Stella Artois®; international brands Beck’s®, Leffe®, and Hoegaarden®; and local champions Bud Light®, Skol®, Brahma®, Antarctica®, Quilmes®, Victoria®, Modelo Especial®, Michelob Ultra®, Harbin®, Sedrin®, Klinskoye®, Sibirskaya Korona®, Chernigivske®, Cass®, and Jupiler®. Anheuser-Busch InBev’s dedication to heritage and quality originates from the Den Hoorn brewery in Leuven, Belgium dating back to 1366 and the pioneering spirit of the Anheuser & Co brewery, with origins in St. Louis, USA since 1852. Geographically diversified with a balanced exposure to developed and developing markets, Anheuser-Busch InBev leverages the collective strengths of its more than 150,000 employees based in 25 countries worldwide. In 2013, AB InBev realized 43.2 billion USD revenue. The company strives to be the Best Beer Company Bringing People Together For a Better World. For more information, please visit: www.ab-inbev.com.
About Better World
Through our commitment to be the Best Beer Company Bringing People Together For a Better World, Anheuser-Busch InBev is the beer industry leader in social responsibility initiatives, ranking as the No. 1 brewer on FORTUNE Magazine’s “World’s Most Admired” companies list. Our Better World efforts focus on three pillars: promoting responsible drinking; protecting the environment; and giving back to the communities in which we live and work. Around the world, we develop and implement social responsibility programs and campaigns in partnership with parents, government officials, community organizations, retailers and others. From promoting responsible drinking messages on some of the world’s most watched television programming, to turning coconut husks into renewable energy to fuel our breweries, to volunteering in the community, Anheuser-Busch InBev and its employees are committed to making a difference.
2009 World Economic Forum report on Supply Chain Decarbonization
Note: Emissions reductions assume no change in volume, as targets are intensity based
Copyright Business Wire 2014