Consumer preferences in the alco-beverage industry are undergoing a significant shift toward ethical and sustainable practices. This evolving landscape has established sustainability as a unifying value among market stakeholders. In response, AB InBev India is redefining its approach to brewing through innovative initiatives and a strong commitment to environmental responsibility. With notable strides in renewable energy, smart agriculture, and circular packaging, the company aims to achieve 100% returnable or majority-recycled packaging by 2025, demonstrating its dedication to reducing waste and environmental impact while paving the way for a greener future.
In an exclusive interview with TheCSRUniverse, Mr. Abhinav Bodas, Director of Procurement & Sustainability at AB InBev India, shares insights on the company's comprehensive Global Responsible Sourcing Policy and its commitment to human rights, labor practices, and environmental stewardship throughout its entire supply chain. He also discusses their Smart Agriculture program and its impact on empowering farmers, as well as their water conservation and climate action goals. Join us as we explore the key highlights from the conversation with Mr. Bodas to learn more about AB InBev India's transformative journey.
Scroll down for detailed insights.
Q. As consumers prioritize transparency and sustainability, how does AB InBev India ensure ethical sourcing and responsible practices throughout its entire value chain?
A. We’re focused on brewing great beers that benefit both people and the planet. We have a comprehensive Global Responsible Sourcing Policy that aligns with the UN Global Compact and other leading sustainability standards. This policy outlines our commitment to human rights, labour practices, environmental stewardship, and business integrity throughout our supply chain.
We partner with more than 2000 farmers to improve their agricultural practices, promote sustainable land management, and empower them with better livelihoods. This includes initiatives like providing access to training and technology to enhance crop yields and water efficiency. We're transitioning our breweries to 100% renewable electricity by 2025, partnering with leading renewable energy providers. Our Brewery in Mysore has 80% of its operations driven through renewable energy. This will reduce our environmental footprint and promote sustainable business practices. We're committed to using recyclable and recycled content in our packaging and are exploring innovative solutions to minimize packaging waste.
Our commitment to ethical sourcing and responsible practices is ingrained in our company culture and guides our decision-making processes at every level of the organisation. We understand that sustainability is a journey, and we remain dedicated to advancing our efforts to create a more sustainable future for all.
Q. Can you elaborate on AB InBev India's "Smart Agriculture" initiatives and their impact on empowering farmers and responsible crop cultivation?
A. Beer is a natural, local product made from barley and other locally sourced ingredients. More than five years ago, we expanded our global Smart Agriculture program to India to focus on empowering farmers and promoting responsible crop cultivation. This initiative has grown from strength to strength every year. The Smart Barley initiative, a key component of our Smart Agriculture pillar in India, exemplifies our commitment. With over 2,000 Indian farmers, the program promotes water conservation and crop rotation, ensuring high-quality barley production while safeguarding the environment for future generations.
The cornerstone of our Smart Agriculture pillar is direct collaboration. We've established on-ground teams who work closely with farmers to identify their needs and develop solutions. This collaborative approach ensures our initiatives address real-world challenges faced by Indian farmers.
At the heart of our efforts lies the goal to connect, upskill, and financially empower 100% of the farmers we work with. We provide comprehensive training programs through smart partnerships like the Indian Institute of Wheat and Barley Research to equip farmers with training on improved cultivation practices, soil health management, and efficient water usage. This includes access to the latest technologies, best practices in sustainable farming, and valuable market information.
Additionally, we connect farmers directly with buyers, ensuring they receive a fair price for their produce and a stable income.
We are committed to the long-term success of our Smart Agriculture program. We closely monitor the program's impact, measuring factors like crop yields, water usage, and soil health. This data allows us to continuously refine and improve the program, ensuring it delivers maximum benefit for farmers, the environment, and the brewing industry.
Q. In water-stressed regions, how is AB InBev India actively contributing to water conservation and improving water availability for local communities?
A. More than just a key ingredient in our products, water is a critical resource for the health and well-being of our communities. Our commitment to water conservation and providing water access and security is unwavering.
As part of our "Water Stewardship" program, we've made significant strides in water-stressed regions like Telangana, Haryana, Maharashtra, and Karnataka since 2019. Our focus extends beyond brewery water use reduction; we aim to enhance water availability and quality for communities.
Achieving a major milestone in 2023, we replenished 199% of brewery water usage through groundwater recharge while cutting freshwater consumption by 50% via wastewater recycling. Our efforts resulted in a 28.65% reduction in water usage ratio from 2019 to 2023. Additionally, projects like rainwater harvesting and watershed management have cumulatively boosted water recharge capacity by 20 million HL across five locations.
Our commitment to water conservation remains steadfast, driving continual improvement for both communities and the environment.
Q. With ambitious carbon emission reduction goals, what specific measures is AB InBev India taking to achieve its 2025 Climate Action targets?
A. Our climate action goals include sourcing 100% renewable electricity and reducing carbon emissions by 25% across our value chain by 2025.
In 2023, approximately 80% of operations at our Karnataka brewery were powered by renewable energy, while 27% of our Indian breweries operated on renewable energy. To achieve net zero emissions by 2040, we've begun carbon baselining with 100 key suppliers and are co-creating Net Zero roadmaps with them. Our "GreenMiles" initiative exemplifies collaborative efforts, partnering with FreightFox to pilot sustainable transportation programs, including incentives for eco-friendly options like CBG, CNG, BS VI, EVs, and FCEVs.
While we've made strides, our commitment to pushing boundaries remains unwavering as we strive for a sustainable future.
Q. Beyond achieving milestones in recyclable content and returnability, how is AB InBev India further innovating in circular packaging solutions?
A. We’re at the forefront of innovation in circular packaging solutions, going beyond milestones in recyclable content and returnability. Our collaborations with pubs, retail outlets, and partners are integral to our value chain, emphasising sustainability and circularity. We have systematised the retrieval of empty kegs and glass bottles for reuse, contributing to a circular approach in our packaging initiatives.
In India, about 57% of our glass bottles are returned. Our glass bottles have over 46.6% (2022) recycled content, and our Cans have 74.2% (2022) recycled content.
As a responsible industry player, we recognise the importance of circular packaging designs for resource efficiency and environmental responsibility. Our initiatives include reducing material consumption (tin-free steel, paper), complying with Extended Producer Responsibility (EPR), promoting bottle return programs, and enhancing can recyclability.
Our commitment to circular packaging includes full compliance with EPR regulations, achieving a 100% filing in 2022 & 2023. Collaborations with suppliers focus on increasing returned bottles, reducing waste, and minimising new bottle production.
Q. Can you share examples of successful collaborations or partnerships that have contributed to AB InBev India's sustainability initiatives and goals?
A. We actively seek out partnerships that make a real difference. These initiatives underscore our commitment to sustainability across our pillars- including climate action, water stewardship, smart agriculture, and circular packaging.
Some of our success stories include:
-- We established our first on-site solar Power Purchase Agreements (PPAs) at facilities in Telangana and Haryana. We've also partnered with organisations like Water Aid to tackle water scarcity challenges in the same regions.
We're digitally transforming our Smart Barley program alongside Kisan Hub, NSFI, and the Indian Institute for Wheat and Barley Research. This collaboration helps us upskill farmers, promote sustainable practices, and cultivate climate-resilient crops.
-- Water scarcity is a serious issue, so we implemented a Zero Liquid Discharge (ZLD) strategy at four sites. This involved partnering with technology experts to incorporate advanced systems like Reverse Osmosis (RO). Achieving 100% ZLD at breweries in Haryana, Telangana, and Maharashtra is a testament to our commitment to efficient water recycling, all thanks to strong partnerships.
Q. How is AB InBev India engaging consumers to educate them about its sustainability initiatives and foster a sense of shared responsibility towards the environment?
A. We're dedicated to fostering widespread participation in building a sustainable future. Through transparency, we openly communicate our sustainability goals and challenges. Leveraging digital platforms and brand activations, we engage consumers in meaningful conversations about our initiatives. Collaboration with influencers, environmental organizations, and communities amplify our impact. Targeted campaigns provide informative content to empower consumers with knowledge about their environmental choices. Together, we inspire shared responsibility for a better tomorrow.
Q. Given the evolving industry landscape and changing consumer preferences, how does AB InBev India perceive its role in influencing and leading the broader Alco-Bev industry towards more sustainable and ethical practices?
A. At AB InBev India, we're leading the charge in transforming the Alcobev industry towards sustainability and ethics. Sustainability isn't just a buzzword for us; it's ingrained in our business practices. Through collaboration with industry stakeholders, leveraging our global network, and transparency in our actions, we aim to set new standards for the entire sector. Our goal is to be a catalyst for positive change, inspiring responsible choices among both our peers and consumers.
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