ZERO Carbon Footprint

ENERGY , CARBON AND WASTE MANAGEMENT

We are committed to enhancing energy efficiency, reducing carbon emissions and managing waste across our operations, distribution and value chain through investments in clean low-carbon technologies, renewable energy and responsible disposal practices, supported by employee education on waste reduction to deliver zero waste to landfills.

Stakeholder Groups Most Concerned:

Government Agencies and Regulators; NGOs, Industry Groups and Local Communities; Investors

Our Approach

We actively implement measures to enhance energy efficiency, reduce carbon emissions and manage waste across our operations, guided by Carlsberg Malaysia’s Environmental Policy and Guidelines. Our approach enables systematic 3R (Reduce, Reuse and Recycle) programmes to achieve our zero waste to landfill target, alongside initiatives to lower greenhouse gas (GHG) emissions, particularly methane (CH4) and carbon dioxide (CO2).

Furthermore, to ensure our commitment translates into measurable progress, we have set clear targets and action plans, regularly benchmarking our performance against Carlsberg Group and regional breweries in energy consumption, emissions management and sustainable waste practices.

Why It Is Important

Climate change and environmental degradation directly impact our brewing operations and value chain sustainability. Our brewery’s energy consumption, carbon emissions and waste generation significantly influence our operational costs, regulatory compliance and environmental footprint.

Climate-related disruptions affect agricultural yields, water availability and supply chain stability, while improper waste management strains natural resources and increases operational costs, affecting our brewing capabilities, product quality and business continuity.

Building on this understanding, we recognise our responsibility to achieve zero carbon emissions at our brewery by 2030 and net zero carbon emissions across our value chain by 2040. Our strategy focuses on investing in low-carbon technologies, renewable energy and responsible waste management practices, ensuring sustainable operations that benefit our business and the environment.

Progress/Achievements

ENERGY AND CARBON
Energy Consumption

We utilise both non-renewable and renewable energy sources. Our non-renewable energy comprises natural gas, used for our brewery’s boiler, and purchased electricity from the national grid for our offices in Malaysia and Singapore.

To optimise energy consumption, we improved thermal energy efficiency by enhancing the boiler and burner efficiency. This process seals off heat losses by improving the insulation method in our equipment and heat distribution system.

For renewable energy, we optimised biogas recovery from our wastewater treatment plant by improving biogas collection using new settlers and a methane chamber. Higher biogas recovery reduces natural gas usage and lowers GHG emissions.

TOTAL ENERGY CONSUMPTION

In 2024, we reduced our energy consumption by 224 MWh through improvements in boiler and burner efficiency, upgrades to the air compressor and ammonia condensing systems, as well as the installation of a more energy-efficient canning line and Beer Membrane Filtration System.

Brewery Electricity Intensity

In 2024,our brewery’s electricity intensity decreased compared to 2023,driven by the optimisation of the cooling system during beer production.

Carbon Emissions

We aim to reduce our value chain emissions by 30% by 2030 and have begun collecting Scope 3 carbon emissions data to enhance the monitoring and management of our value chain’s carbon footprint. In 2024, we enhanced our disclosures by including three categories of Scope 3 carbon emissions, namely Category 5 (Waste Generated in Operations), Category 6 (Business Travel) and Category 7 (Employee Commuting).

We monitor our carbon emissions by tracking our electricity and natural gas consumption, which are our key operational performance indicators.

Total Carbon Emissions (tCO2e)：

Scope 1: Direct carbon emissions from sources owned or controlled by our operations.

In 2024, our Scope 1 carbon emissions were higher due to lower biogas gas consumption, which accounted for only 13% of our total gas consumption. Lower biogas consumption was partly due to lower volume impact and less extract / beer loss, leading to less Chemical Oxygen Demand load to the wastewater treatment plant and reduced biogas generation.

Scope 2 (Location-based): Indirect carbon emissions from purchased electricity from the national grid.

We continued to purchase I-REC in 2024 to offset 100% of Carlsberg Malaysia production site carbon emissions.

Scope 3: Indirect carbon emissions from the value chain as a result of activities from assets not owned or controlled by our operations.

The following presents the proportion and reduction of GHG emissions from each stage of our product life cycle (2015–2022).

Value Chain Carbon Emissions

Our carbon footprint analysis is aligned with the Greenhouse Gas (GHG) Protocol for Scope 1, 2 and 3 emissions. The data for the analysis is provided by Carlsberg Group in collaboration with Carbon Trust for measurement and tracking. The analysis covers key emission sources across the value chain, including agricultural sourcing, beverage production, packaging,
 
Although no assessments were undertaken in 2023 and 2024, the 33% reduction in our overall relative value chain carbon emissions from 2015 to 2022 reflects our ongoing commitment to low-carbon operations. This performance aligns with our long-term goal of achieving a 30% reduction in relative value chain carbon emissions by 2030. To this end, we will continue to implement initiatives across our operations to further reduce our carbon footprint and support the Carlsberg Group’s global sustainability targets.

WASTE MANAGEMENT

We ensure efficient waste management through various initiatives to reduce the environmental impact of our operations. In 2024, we implemented the following initiatives:

Through our waste management partners, our hazardous waste is disposed of responsibly, while non-hazardous waste is diverted from disposal. Our non-hazardous waste is segregated into organic and inorganic waste before they are sent to certified recycling facilities. 

Organic waste comprises food waste, sludge from the wastewater treatment plant, waste beer and brewery by- products, such as spent grain, spent yeast and kieselguhr. Inorganic waste comprises aluminium, plastic, glass, paper and corrugated boxes and metal. All waste generated by the Shah Alam brewery and office building is recycled, repurposed and recovered.

Transforming Brewery Waste Through Bioconversion

At our Malaysia operations, we are turning brewery by-products into valuable resources through the power of innovation and collaboration. Our partnership with Veolia since 2018 demonstrates how collaboration can drive innovative solutions for waste management. The partnership strengthened in 2024, following the installation of our new bottles and cans filling line, expanding our sustainable waste management capabilities.

Through this collaboration, we transformed brewery by-products, such as spent yeast, Brewery Spent Grain (BSG) and kieselguhr, into valuable resources using an innovative bioconversion process. These materials, which would typically end up in landfills, serve as feedstock for black soldier fly larvae. Veolia then converts these larvae into insect- based ingredients for animal feed, while the bioconversion by-product (frass) becomes agricultural fertiliser.

The success of this initiative earned us UN Global Compact Network Malaysia & Brunei's Partnership for the Goals recognition in 2024 during the Forward Faster Sustainability Awards 2023 event. This recognition validates our approach to sustainability through partnerships and circular economy principles.

This collaboration advances multiple UN SDGs, particularly SDG 12: Responsible Consumption and Production, SDG 13: Climate Action and SDG 17: Partnerships for the Goals. It exemplifies how industry partnerships can create sustainable solutions that benefit both business operations and environmental conservation.

Sustainable Outcomes:

•    High-quality animal feed production
•    Agricultural fertiliser generation
•    Comprehensive waste traceability

Going Forward

We will continue strengthening our efforts in energy efficiency, carbon reduction and waste management. Our focus will be on expanding the adoption of low-carbon technologies, increasing renewable energy usage and improving resource efficiency across operations.

We will also strengthen circular economy practices, ensuring that all waste streams, including brewery by-products, are repurposed into valuable resources. Additionally, we will enhance monitoring and reporting mechanisms to improve transparency in emissions and energy consumption.