HEINEKEN announces
'Drop the C' programme
Brewer sets new ambition to reduce carbon emissions
Amsterdam, 12 February 2018 - HEINEKEN today
announced its 'Drop the C' programme for renewable energy. With
'Drop the C' the company aims to grow its share of renewable
thermal energy and electricity in production from the current level
of 14% to 70% by 2030. HEINEKEN wants to drive a real change
towards renewable energy and will therefore not purchase unbundled
certificates to meet its reduction targets. In addition, new
emission goals will be set for distribution and cooling and, for
the first time, also for packaging. The brewer commits to set
science based targets for these areas in the next two years.
Since 2008 carbon emissions at HEINEKEN breweries
have decreased by 41%[1] and in 2017
the company has already reached its 2020 emission targets in
production.
Jean-François van Boxmeer, Chairman of the
Executive Board/CEO of HEINEKEN commented:
"With all the good progress made in reducing our CO2
emissions, now is the right time to set ourselves new targets. When
I visit our breweries I want to see that we are brewing with real
green energy and that we are not achieving our reduction targets by
buying unbundled certificates."
"Beyond production, distribution and cooling, we
are also going to take a close look at our packaging, because it
represents a significant portion of our carbon footprint. Packaging
is an area where reductions will be harder to achieve because we
simply cannot do this alone. We invite our business partners and
others to work with us to reduce emissions across our business,"
concluded Jean-François van Boxmeer who recently joined the CEO
Climate Leadership Initiative at the World Economic Forum in
Davos.
Targets to reduce carbon emissions in production
HEINEKEN commits to increase its share of renewable
energy in production from 14% today (renewable thermal energy and
electricity combined) to 70% by 2030. This implies an 80% reduction
target in carbon emissions[2] compared to
the 2008 base year. During 2017 numerous projects have already been
identified worldwide that will contribute to achieving the 2030
ambition. The targets will be externally verified by the Science
Based Targets initiative.
The company realises that its diverse and extensive geographical
footprint poses a challenge as it includes many countries in
Africa, Asia and Latin America where renewable energy solutions are
not readily available.
HEINEKEN's energy footprint in production is
driven by thermal energy (scope 1 of GHG Protocol), which it uses
to heat the boilers needed for brewing and by the electricity
needed for the production process (Scope 2 of GHG Protocol). Today
the split of this energy mix is 70% thermal and 30%
electricity.
The company has already made inroads to renewable
electricity by using solar and wind energy. Its brewery in
Massafra, Italy is one of the largest solar breweries in the world
with a capacity of 3.3 MW, while its Göss brewery in Austria is
carbon neutral. In Singapore, HEINEKEN is brewing with solar energy
and in the Netherlands the company is using wind energy and solar
power. Currently 29% of HEINEKEN's global electricity usage is
renewable.
Today 7% of the thermal energy used by HEINEKEN is
powered by biomass and biogas. Making progress in renewable thermal
energy is much harder to achieve than on the electricity side.
Renewable thermal energy is often self-produced and needs to be
reliable to keep the breweries running. In addition, today there
are very few commercial solutions available here. However, the
company has also experienced the positive impact that renewable
thermal solutions can have on the communities in which it operates.
Unproductive waste from communities can be turned into energy and
provide income for the local people. In Vietnam, for instance, the
company sources rice husks from local farmers to heat its brewing
boilers. In Brazil a new biomass boiler was fired up in 2017 at the
company's brewery in Ponta Grossa, solely using woodchips from
certified reforestation companies.
HEINEKEN will continue to embark on reforestation
projects which help to offset carbon emissions and also support
water preservation. Currently the company has reforestation
projects in Mexico, Spain and Indonesia.
Internally HEINEKEN will start piloting Carbon
Shadow Pricing to help drive sustainable investment and innovation
decisions.
Renewed ambition for
distribution, cooling and packaging
HEINEKEN
will set new emission reduction targets for distribution, cooling
and packaging in the next two years. These three focus areas, part
of the GHG protocol's scope 3, are difficult to tackle and neither
HEINEKEN nor the industry can drive a reduction in carbon emissions
on its own.
For distribution, the company will expand its
reduction scope, currently only covering the Americas and Europe.
For cooling, a focus area with HEINEKEN buying green fridges for
many years already, the company will define new reduction targets.
For packaging, reaching reduction targets will be most challenging
given that it requires broad collaboration and changes in consumer
behaviour. HEINEKEN is therefore committed to working with the
industry, suppliers, governments, customers, consumers and other
relevant parties. Collaboration, for instance, will be needed to
increase the recycling rate of materials used in cans and bottles,
reduce the amount of glass and other materials used in packaging
and to support suppliers to move to renewable energy in their
factories.
HEINEKEN's vision for renewable energy is called 'Drop the C', this
name is inspired by the idea that taking the C out of CO2
leaves Oxygen. The play on words is also about ensuring sea levels
do not continue to rise.
HEINEKEN Carbon Footprint*
* 2014 Carbon Footprint - data
based on 80% of the HEINEKEN volume, representative for the total
carbon emissions of the company. Carbon footprint data is updated
every three years, the next update will be in 2018.
- ENDS -
Editorial information:
For more information, please contact:
Josephine Bertrams | josephine.bertrams@heineken.com | +31 (0)20
5239 355
About HEINEKEN:
HEINEKEN is the world's most
international brewer. It is the leading developer and marketer of
premium beer and cider brands. Led by the Heineken® brand, the
Group has a portfolio of more than 300 international, regional,
local and speciality beers and ciders. We are committed to
innovation, long-term brand investment, disciplined sales execution
and focused cost management.
Through "Brewing a Better World", sustainability
is embedded in the business and delivers value for all
stakeholders. HEINEKEN has a well-balanced geographic footprint
with leadership positions in both developed and developing
markets.
We employ over 80,000 employees and operate
breweries, malteries, cider plants and other production facilities
in more than 70 countries. Heineken N.V. and Heineken Holding N.V.
shares trade on the Euronext in Amsterdam. Prices for the ordinary
shares may be accessed on Bloomberg under the symbols HEIA NA and
HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two
sponsored level 1 American Depositary Receipt (ADR) programmes:
Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX:
HKHHY). Most recent information is available on HEINEKEN's website:
www.theHEINEKENcompany.com and follow us on Twitter via
@HEINEKENCorp.
[1] Reduction
of 41% in relative terms i.e. CO2 emissions
reduction per hectolitre of beer produced. In absolute terms
HEINEKEN production emissions have dropped by 7% even though
production volumes grew by 57% in this time period.
[2] Relative
reduction: CO2 emissions
reduction per hectolitre of beer produced.
HEINEKEN announces ‘Drop the C’
programme to reduce carbon emissions
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: HEINEKEN NV via Globenewswire
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