In a world where sustainability and responsibility have become paramount, United Breweries, a leading brewery, has emerged as a trailblazer in driving superior growth while placing these principles at the heart of its operations. With a deep commitment to tackling global challenges, United Breweries is dedicated to making a positive impact on the environment and society. In an enlightening interview with TheCSRUniverse, Wiggert Deelen, Senior Director – Supply Chain, United Breweries Limited, sheds light on the brewery's unwavering dedication to sustainability. He discusses the company's comprehensive approach, built on three pillars: environment, social impact, and addressing harmful use. He further talks about the brewery's efforts in reducing carbon footprint, promoting renewable energy, embracing plastic recycling and waste reduction initiatives, as well as their focus on sustainable farming practices and empowering local communities through partnerships.
Moreover, he also emphasizes the importance of collective action and the need for continuous progress in addressing pressing social and environmental challenges. With its sight set on even higher ambitions for climate action and social support, United Breweries is determined to build sustainable brands that align with their long-term sustainability goals.
For deeper insights, please read the full interview below.
Q. What are United Breweries broader sustainability mission, CSR goals, and ongoing sustainability initiatives? How do these efforts drive superior growth while placing sustainability and responsibility at the forefront of the company's operations?
Wiggert Deleen: At United Breweries, we are driven by our purpose to brew the joy of true togetherness and inspire a better world. We acknowledge that our success is intertwined with the well-being of people, the planet, and the communities around us. Taking social and environmental responsibility is deeply ingrained in our company's identity. As a significant partner to the communities where we operate, we are leading the charge in creating a better environment, supporting local values, and driving economic and social development through our CSR initiatives.
Depletion of natural resources and the effects of climate change pose risks to all companies. Given the beverage industry's heavy reliance on natural resources, it is imperative that we take proactive and strategic measures to ensure business continuity. UBL is firmly committed to operating and growing our business in a socially responsible manner. Our goal is to achieve sustainable development by striking a balance between commercial progress and environmental and social welfare. Our CSR initiatives are focused on reducing the impact of our business and enhancing the quality of life for the communities living near our breweries.
One example of our commitment is our approach to water, the primary raw material for all UBL products. Managing our water footprint is crucial for both our business success and the well-being of the local communities we serve. Through our sustainability efforts, UBL continually strives to reduce freshwater consumption during beer production and actively works on recycling wastewater generated from our processes. With our CSR interventions, we aim to address the escalating water crisis by focusing on water conservation, recharge initiatives, and providing access to safe drinking water.
Q. Please share the ongoing sustainability initiatives and their contribution to environmental stewardship and social impact.
Wiggert Deelen: Over the years, we have made significant progress and gained valuable insights. We recognize that the world is currently facing urgent social and environmental challenges that demand decisive and collaborative action. From addressing climate change and water scarcity to promoting a more equitable and just society, we are committed to playing our part in tackling these issues.
Through our CSR initiatives, we have implemented 18 water conservation projects in various water-stressed regions. These endeavours have had a substantial impact on balancing the water withdrawal from the ground as part of our operations. Additionally, we have undertaken afforestation projects in Aurangabad, where we have successfully planted over 100,000 trees, covering an area of approximately 10 acres. These efforts have contributed to improving air quality, enhancing biodiversity, and restoring ecological balance.
UBL has been at the forefront of promoting 2R Barley cultivation in India. Over time, we have witnessed the positive effects of this cultivation method on both the environment and the livelihoods of nearly 8,000 farmers with whom we collaborate. Furthermore, through our continuous efforts to maximize circularity, we have successfully reduced solid waste sent to landfills by an impressive 94%.
Progress has been achieved across various domains, and our sustainability strategy will propel us to set even higher ambitions. We will intensify our efforts to support the social agenda and build brands that align with our sustainability objectives. This will be a key priority for the forthcoming decade.
Q. How does UB plan to further reduce its carbon footprint, achieve additional emission reductions, and navigate challenges associated with decarbonization? What specific strategies, technological innovations, and investments are being considered or implemented in driving these efforts?
Wiggert Deelen: Through our collective efforts, we have successfully reduced our carbon footprint by over 20% compared to 2018. In our operations, we prioritize the use of renewable energy, with over 80% of our energy derived from renewable sources. This includes 34% renewable electrical energy and 96% renewable thermal energy. Additionally, we harness biomethane produced by our effluent treatment plants for energy generation in two of our breweries. We remain steadfast in our commitment to transitioning to energy-efficient processes and embracing renewable energy sources.
To further promote the adoption of renewable electricity, we are actively exploring the purchase of Renewable Energy Certificates (RECs). This will contribute to expanding our total renewable electricity generation capacity while also seeking additional Power Purchase Agreements (PPAs) to ensure a sustainable energy supply.
Q. United Breweries has achieved 100% recycling through Extended Producer Responsibility (EPR) for plastic. Could you provide insights into the initiatives and strategies employed to achieve this milestone? How does the company ensure circularity beyond recycling, such as promoting reuse, reducing single-use plastics, or exploring sustainable packaging alternatives?
Wiggert Deelen: Waste management persists to be one of the largest problems that our nation is facing. As a responsible corporate citizen, we ensure a complete adherence to all relevant waste management rules, policies, and programs to minimise waste generated and maximise opportunities for reusing and recycling waste throughout our business. Across all our breweries, we also use energy efficient agro-waste fuel.
We have successfully transitioned to a 100% recycling for plastic waste through the implementation of Extended Producer Responsibilities (EPR). Under the EPR system, UBL operates as a brand owner, assuming the responsibility of collecting, processing, and recycling plastics associated with both raw materials and finished goods. To fulfil our commitment, we have engaged a third-party agency to collect an equivalent amount of plastics consumed by us from the society.
Furthermore, UBL has taken additional measures to eliminate the use of single-use plastics. This includes ensuring that the shrink wraps around new bottles have a thickness greater than 120 microns and transitioning to BOPP tapes, among other initiatives.
In the case of glass and cans, materials known for its recyclability, we proudly recycle and reuse 100% of our glass bottles and cans at production sites. This exemplifies our dedication to the circular economy, and sustainable economic growth.
Through continuous efforts to maximise circularity, we have become 94% waste to landfill free.
Q. Given the water-intensive nature of brewing, what steps is the company taking to address water scarcity, promote responsible water usage, and engage with local communities to ensure sustainable water management? Additionally, how does the company integrate biodiversity considerations into its business operations and supply chain?
Wiggert Deelen: We prioritize the responsible and efficient utilization of our primary raw material, water, in our production practices. By adopting industry best practices and leveraging state-of-the-art technology, we have positioned our brands as some of the most preferred and consumed in the market.
UBL's CSR water conservation program is dedicated to identifying and implementing large-scale projects that promote water replenishment and recharge. These initiatives harness rainwater effectively, improving groundwater levels and alleviating water scarcity within communities. Rainwater harvesting plays a crucial role in these projects and has been successfully implemented in various locations. Furthermore, the program actively engages with local communities through awareness programs and water budget workshops to ensure sustainable water management. Our CSR projects in afforestation, such as Project Oxygen Hub and Project Oxygen Zone, aim to enhance biodiversity and restore ecological balance.
By combining efforts to reduce freshwater requirements, increase efficiency, implement reclamation processes, and promote water conservation, we are committed to achieving water balance within our communities.
Q. How does UB collaborate with industry players, NGOs, or government organizations to drive sustainability and CSR initiatives on a broader scale? Could you share examples of successful collaborations that have had a significant positive impact?
Wiggert Deelen: We firmly believe in the power of collective action for environmental sustainability, where multiple stakeholders join forces to actively contribute and maximize the impact of projects. Through partnerships with reputable NGOs and other technical implementation partners, our goal is to foster a more equitable and sustainable future for our co-communities. We also strive to establish meaningful partnerships with local stakeholders and industry bodies, ensuring a collective win for all involved. One excellent example of this is the successful implementation of two urban forest projects in the Waluj Industrial area of Aurangabad, Maharashtra.
In 2020, we initiated Project Oxygen Hub in collaboration with Can-Pack India Pvt Ltd and our implementation partner, Prayas Youth Foundation. Our initial objective was to create an urban native forest by planting 75,000 trees of 75+ native species using the Miyawaki afforestation technique, covering an area of 5 acres. The Maharashtra Industrial Development Corporation (MIDC) allocated land for this project, and within just two years, we witnessed a remarkable transformation from a dump yard to a thriving forest. Inspired by this achievement, we decided to implement Phase 2 of the initiative, known as Project Oxygen Hub. Launched in the fiscal year 22-23, this phase aims to replicate our efforts by planting 50,000 trees of 80+ native species in an area of 4.94 acres.
Furthermore, in all our water conservation initiatives, we collaborate closely with local authorities and NGOs to carefully identify suitable project sites and ensure the long-term sustainability of each undertaking.
Q. How does United Breweries incorporate Environmental, Social, and Governance (ESG) factors into its business operations and decision-making processes? Are there specific frameworks, metrics, or targets the company follows to assess and improve its ESG performance? How does UB engage employees in ESG initiatives and encourage their active participation in driving positive environmental and social impact?
Wiggert Deelen: As the largest brewing company in the country, UBL acknowledges its accountability and responsibility towards both our people and the planet. We are committed to creating a positive impact throughout our supply chain and beyond. Our aim is to foster a company-wide culture that embraces sustainability at its core, starting from the grassroots level. We achieve this by delivering products of the highest quality, offering choices that align with consumer preferences, fostering innovation, and promoting cultural and social inclusiveness. Upholding ethical corporate governance is paramount to us as we strive to generate maximum shared value for all our stakeholders.
In our pursuit of balanced growth, we are actively integrating our targets with the global Heineken ESG (Environmental, Social, and Governance) targets. Additionally, we have implemented long-term incentive targets that are directly linked to the progress made in our ESG initiatives for all our leaders. This demonstrates our commitment to driving sustainable practices across our organization and aligning our goals with broader environmental and social objectives.
Q. What is United Breweries' future roadmap for sustainability and CSR? How does the company plan to raise its ambitions on climate action, support the social agenda, and prioritize sustainable brand building? What steps are being explored to accelerate the transition to a low-carbon future and achieve sustainability ambitions?
Wiggert Deelen: At UBL, sustainability and responsibility are at the forefront of all our operations as we embark on our next phase of growth. We are intensifying our efforts to address pressing challenges such as climate change, water scarcity, and promoting a more equitable and just society. Our determination to contribute to these causes is unwavering.
In the fiscal year 22-23, we allocated more than 70% of our CSR funds to water initiatives, including ten significant water conservation projects and one project focused on providing safe drinking water. Looking ahead, we are committed to increasing this dedication to 75% over the next five years. These initiatives involve implementing large-scale rainwater harvesting and watershed management projects near our breweries to conserve water. We also actively engage with communities to raise awareness about rainwater harvesting practices, promote climate-resilient agricultural practices, and develop infrastructure for clean drinking water access. These projects have been undertaken in various states including Rajasthan, Punjab, Haryana, Karnataka, Kerala, Telangana, Tamil Nadu, and Odisha.
In our pursuit of a low-carbon future, we prioritize optimal energy efficiency throughout our supply chain and actively promote renewable energy projects. By embracing renewable energy sources, we aim to reduce our carbon footprint and contribute to a more sustainable future.
