Bud APAC has set a 2025 Climate Action Goal to have 100% of its purchased electricity originating from renewable sources, reducing 25% of carbon emissions across the value chain, and achieving a 35% reduction in absolute Scope 1 and 2 emissions
COP28 was a conference marred with controversy, even before it started. The choice of the United Arab Emirates as the host country was questioned due to its status as one of the world’s largest producers of fossil fuels. This raised concerns about the impartiality of the conference, especially given the UAE’s significant oil and gas expansion plans??.
Further controversy arose regarding the appointment of Sultan Al Jaber as the COP28 president. Al Jaber is the managing director of the Abu Dhabi National Oil Company (ADNOC), which is the 12th largest oil company by production globally. Critics questioned his suitability for the role due to his background in the oil industry??.
This controversy was exacerbated when Al Jaber made comments suggesting there was “no science” behind cutting fossil fuels to limit global warming to 1.5C, which sparked significant backlash from scientists and climate groups????. These events led to widespread discussions about the possible conflicts of interest and the effectiveness of the COP28 in addressing the pressing issues of climate change.
Despite this, significant progress has been made. On the final day, it was agreed countries will now be asked to set “ambitious, economy-wide” emissions reduction targets covering all greenhouse gases and in line with limiting global warming to 1.5C over the next two years, taking into account the agreement on fossil fuels. The idea is to transition away from fossil fuels in an attempt to reach global net zero emissions by 2050.
Significant wins for individual businesses were also highlighted. Budweiser APAC is one such business that has stepped into the limelight.
While aiming to achieve net zero in 2040, Bud APAC has set a 2025 Climate Action Goal to have 100% of its purchased electricity originating from renewable sources and achieving a 35% reduction in absolute Scope 1 and 2 emissions.
Scope 1 includes emissions from sources that are owned or controlled by the company, like factories and vehicles. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating, and cooling.
The business has also committed to reducing 25% of carbon emissions across the value chain. This includes emissions from raw material production, manufacturing, distribution, and even the use and disposal of products. Achieving this goal requires a comprehensive approach that involves working with suppliers, improving energy efficiency, and implementing sustainable practices at every stage of the product lifecycle.
“At a time when environmental consciousness and sustainability are paramount, Bud APAC will continue to spearhead efforts to support carbon neutrality goals set by governments across APAC. As the region’s largest brewer, we know we have an important role to play and are making clear progress towards our ambition to achieve net zero ambition across the value chain by 2040,” said Jan Clysner, Vice President of Sustainability and Procurement.
Bud APAC’s central sustainability tactic focuses on decarbonisation within its operations. It has identified crucial priorities and opportunities, centring its climate change mitigation strategy on the creation of eco-friendly breweries and collaborating intimately with suppliers. The goal is to establish a value chain ecosystem to jointly address climate change and related challenges.
Bud APAC is also integrating renewable energy sources to achieve RE100 (100% renewable electricity) and carbon neutrality across its operations.
By 2022, it has already achieved 43% contracted renewable energy in China and 36.5% across APAC. In the same time frame, it has achieved two carbon-neutral breweries in China, the Wuhan and Jinzhou breweries, four of its breweries have achieved RE100 in China, and 17 breweries in APAC have installed solar panels.
Bud APAC has also achieved a 19.7% reduction in carbon emissions intensity per hectoliter across its value chain from the 2017 baseline. In-house operations saw a 49.6% reduction per hectoliter, with overall operational carbon emissions dropping by 45.9%, surpassing the company’s 35% reduction target four years ahead of schedule.
Building a resilient future with partners
Budweiser APAC did not just participating in COP28 but actively contributed to the narrative. Their focus? Forging public-private partnerships for climate change.
Bud APAC is also sharing the learnings and best practices of decarbonisation with its value chain partners. It is adopting the Supplier Strategic Alliance (SSA), Vendor Strategic Alliance (VSA) and Logistics Supplier Strategic Alliance (LSSA) to actively help the suppliers to reduce their emissions, while carrying out renewable energy transition programs and carbon emission management and capacity-building projects.
With China as the starting point, Bud APAC plans to expand its decarbonisation initiative to other APAC markets in due course and empower the partners across the supply chain to achieve the low-carbon transition.
“We will keep operating our 100+ innovation lab with diverse stakeholders to enhance the green ecosystem. Open to new technologies and embracing change, we’re committed to collaborating with partners, start-ups, policymakers, and academic institutions to strengthen a shared ecosystem for our collective journey towards decarbonization.,” said Clysner.
