SABMiller to reduce emissions

2009-06-26 12:48

Johannesburg - SABMiller will reduce fossil fuel emissions from its beers by 50% per litre of beer produced by 2020, it said on Friday.

The JSE-listed company said in a statement that it aimed to achieve this through "greater energy efficiency and by utilising renewable energy sources such as brewing by-products and agricultural waste".

SABMiller anticipated this would enable it to contain absolute emissions across its 200 beer brands at their 2008 level by 2020, despite production volume growth.

The target was announced together with the launch of SABMiller's Sustainable Development report for 2009.

The report detailed some of the steps that were already being taken around the world to achieve the emission reduction goal.

According to the report, the Czech business, Plzensk Prazdroj, has already reduced its carbon emissions by over 50%.

In addition, biogas from its waste water treatment plants was now being used as an auxiliary fuel for brewing, SABMiller said.

Renewable energy sources

Reducing CO2 emissions enabled the brewery to sell surplus allowances at auction in 2006 and invest the money in further environmental projects.

The company added that its operations in India had invested in renewable energy sources such as agricultural waste, including rice husks.

"In May 2007 a boiler fired by rice husks was installed as part of the expansion of the Rochees brewery in Rajasthan.

"This reduces the reliance on fossil fuels and also generates additional income for local farmers," the report said.

The new target related to the fossil fuel emissions generated from energy used within SABMiller's on-site operations.

However the company said it was also committed to reducing carbon emissions within its value chain.

"For example, SABMiller's Colombian business, Bavaria, invested $145m to implement 'super returnable' bottles - which have a reduced carbon impact.

"These are lighter, shaped to reduce wear during transportation and have a special film to protect the surface of the glass, meaning they can be used twice as often - around 40 cycles instead of 20," the report said.

'Growing global concern'

"Climate change is an issue of growing global concern; with likely impacts on weather patterns, water availability and crop yields our business will feel direct effects," said Graham Mackay, SABMiller CEO.

"Our new strategic approach to reduce fossil fuel gas emissions per unit of product will allow us to contain our emissions by 2020, despite growth in production volume," he added.

This followed SABMiller's commitment last year to reduce its water consumption by 25% per hectolitre of beer by 2015 - a target towards which it was already making progress, Mackay said.

SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents.

- SAPA