Investing in a sustainable future
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AB InBev: Investing in a sustainable future WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
CHARLOT TE CL ARK E
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With an ambition to remain the number one brewer 100+ years from now, AB InBev’s sustainability goals have led to a global transformation of its operations
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enowned as the largest beer producer worldwide, AB InBev’s global reach and passion for innovation
has seen the business implement new sustainable solutions. Launching its most ambitious sustainability goals yet in March 2018, encom04
passing smart agriculture, water stewardship, circular packaging and climate action, the business continues to look at ways to secure its position as a leading brewer 100+ years from now. AB InBev knows it can’t solve all of its sustainability challenges on its own and is working alongside technology startups, governments, NGOs, local businesses and universities, notably through its recently launched 100+ Accelerator Programme. Partnering with people who are passionate about solving environmental challenges and building sustainable solutions, areas of focus include improving the livelihood of farmers and the strengthening of the supply chain to take its efforts to new heights. “The launch of the 100+
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“ Our approach is rooted in the communities where we live and work, and we are well positioned to support entrepreneurs who are tackling local challenges”
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— Diane Wauters, Sustainability & Agricultural Development Director, APAC
Accelerator builds on our sustainability goals and acts as a way to fast-track our progress. It is a way for us to partner with companies that can deliver breakthrough advancements in water stewardship, farmer productivity, responsible sourcing, green logistics and more,” explains Diane Wauters, Sustainability & Agricultural Development Director, APAC.
SMART AGRICULTURE Implementing its Smart Agriculture 2025 goals, AB InBev is focusing on upskilling, connecting and financially empowering its direct farmers in over 15
CLICK TO WATCH : ‘100+ 2025 SUSTAINABILITY GOALS’ 07 countries. In India for example, through
programmes, which educate farmers to
the use of data, technology and key
adopt best practices. “With this pro-
insights from the field, the SmartBarley
gramme we aim to drive change and
team is supporting around 4,000
build a sustainable future for us and for
farmers in boosting farmer productivity
our farmers with a truly 360 approach
and environmental performance. By
impacting not only the farmer margin
actively engaging local farmers, R&D
but also water usage reduction through
specialists have sought to improve
better irrigation practices, health &
crop quality and introduce new barley
safety, nutrition and women empower-
varieties, while agronomists have worked
ment,” adds Wauters.
with farmers in the implementation of
“Our approach is rooted in the comm-
crop management practices to enable
unities where we live and work, and we
them to achieve optimum crop yields.
are well positioned to support entre-
All of this work is fully underpinned
preneurs who are tackling local challeng-
by AB InBev’s SmartFarmer training
es. Partnering with KisanHub – a crop w w w.a b- i nb ev. com
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intelligence platform – in the context of
its watershed around high risk sites,
the 100+ Accelerator in India will help
improving water usage and driving
us reach our goal of having 100% of
initiatives to impact the surrounding
our farmers digitally connected faster
watersheds. With more than 884mn
and with better results – which is our
people in the developing world lack-
constant drive,” explains Wauters.
ing access to clean water, water stewardship and building strong rela-
WATER STEWARDSHIP
tionships with like-minded partners
As part of its water stewardship goals,
and suppliers has become a vital area
AB InBev has prioritised the impact of
of focus.
“We have sought to reduce our water usage, checking all water sources to ensure complete security. Working alongside local authorities and partnering with organisations, such as the World Wide Fund for Nature (WWF) and The Nature Conservancy (TNC) will also enable us to truly impact our watersheds,” says Wauters. “In India for example, we are part of a few water roundtables, such as the CEO Water Alliance (CEWA),” she says. “It’s very exciting to create water alliances with other companies sharing similar concerns on our
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water crisis so that we can act and have more impact together. How do we tackle a water crisis? We can only impact our watershed if we work with strong partners in the field, all sharing the same goal to measurably E XE CU T I VE PRO FI LE
Diane Wauters After working in finance for six years in China on various water treatment plants and completing her MBA at Columbia Business School, Diane joined AB InBev’s global procurement team. She is now leading sustainability & agricultural development for the Asia Pacific region
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E X ECU T I VE P RO FI LE
Terry Yao After working in procurement for nine years in national companies, Terry Yao joined AB InBev APAC procurement team. He is now leading sustainability, innovation & SVC in ABI China.
improve water quality and quantity,”
“It is a privilege to leverage our resourc-
she adds.
es, capabilities and the scale of our
Leading Australian brewer Cascade
operations to help our communities by
of Carlton & United Breweries (CUB),
pausing beer production to produce
part of the AB InBev family, has sought
clean, safe drinking water for those
to support those affected by natural
affected by natural disasters” says VP
disasters in Queensland, Australia by
Procurement & Sustainability (APAC)
providing free canned drinking water
Jan Clysner.
to those in need. In partnership with the Palaszczuk Government and not-for-
CIRCULAR PACKAGING
profit organisation GIVIT, the relief
Removing 100,000 tonnes of packag-
programme was launched at CUB’s
ing material globally in 2016, AB InBev’s
Yatala Brewery, the largest brewery in
commitment to follow its goal language
Australia. Following its success, the
on returnable and recycled content has
company has now committed to the
seen the business develop robust relation-
programme for the foreseeable future,
ships with suppliers, local governments
whereby the business will store up to
and partners. Ramping up the percent-
100,000 cans close to Yatala Brewery
age of recycled materials across its oper-
in case of natural disasters, such as
ations, Wauters points out how China’s
wildfires or cyclones, guaranteeing the
‘recycling ban’, forming part of the cou-
health and safety of local communities.
ntry’s Blue Sky/National Sword
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programme, led to a waste crisis in
six-packs at the Cascade brewery
Australia. However, this ban actually
– which part of our journey to remove
helped accelerate conversations around
all plastic among its breweries in the
how to best dispose of paper, plastics
future,” says Clysner. Previously,
and glass, as the country exported
more than one million plastic six-pack
over 3% of its recycling to China,
ring packages were leaving CUB each
amounting to 1.25mn tonnes in 2017.
year, leading the business to look at
“To counteract this growing conc-
ways to reduce the volume of unre-
ern around plastic, CUB has started
cyclable materials across its brew-
to remove the plastic rings on its
ing activities.
“A lot of what we do in sustainability
ers, leveraging common goals and
is linked to our relationship with our
sharing best practices around the
suppliers. If we want to increase our
world,� says Wauters.
glass recycled content, our percentage of renewable electricity or reduce
CLIMATE ACTION
our carbon emissions across our
With the aim to utilise 100% renewable
supply chain, we partner with our
electricity sources, AB InBev has fully
suppliers. We cannot achieve our
transformed its operations from the
sustainability goals on our own. We
inside out. Implementing new value
drive change together with our suppli-
strategy agreements and investing in
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“We cannot achieve our sustainability goals on our own. We drive change together with our suppliers, leveraging common goals and sharing best practices around the world” — Diane Wauters, Sustainability & Agricultural Development Director, APAC new technology to reach a 25% reduc-
ate renewable electricity. The installa-
tion in carbon emissions across its
tion is 15MW, and the annual output is
value chain, the business has em-
15,000Mwh renewable electricity,”
braced new partnerships to take the
explains Terry Yao, Associate Procure-
business on its next phase of growth.
ment Director of Sustainability.
Located at one of the biggest brew-
Taking advantage of solar energy
eries in APAC, Putian Brewery is home
produced in Australia, CUB has also
to the largest on-site solar projects
signed a 12-year Power Purchase
across the brewing industry in the en-
Agreement with global renewable
tirety of Asia Pacific. Onsite, the rene-
energy provider, BayWa. The duo will
wable electricity generated could
provide 74,000 MWh renewable energy
achieve approximately 20% of total
to more than 7,000 homes, where
brewery usage. “In China, for example,
energy will be sourced from its solar
we are working on solar projects and
farm in Mildura, Victoria. Additionally,
have asked our suppliers to build solar
the venture will create over 300 constru-
panels on our buildings. We have
ction jobs and long-term opportunities
covered 150,000 square meters of
in the maintenance of the solar farm.
the rooftop in solar panels to gener-
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C O M PA N Y FACT S
• AB InBev has upskilled, connected and financially empowered 50,000 direct farmers in over 15 countries • AB InBev has partnered with agricultural software-as-a-service provider, KisanHub to undertake a pilot which has connected 1000 out of 3600 farmers in India
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• With more than 884mn people in the developing world lacking access to clean water, water stewardship and building strong relationships with partners and suppliers has become vital • Implementing new value strategy agreements, AB InBev has invested in new technology to reach a 25% reduction in emissions as part of its climate action goals • One of the biggest breweries in APAC, AB InBev’s Putian Brewery is home to the largest on-site solar projects across the brewing industry in the entirety of Asia Pacific. • Solar panels will be placed on the roofs of each CUB brewery in Australia, which will reduce its impact on the environment
India by having the first brewery in Asia
is increasingly invested in meeting its
Pacific to run 100% on renewable elec-
sustainability goals. As premium brands
tricity for Budweiser production since
grow in popularity and demand, the com-
last March. “It’s very exciting to be the
pany will continue to drive innovation
first movers in our industry, leading by
and healthy competition across the bre-
example to ensure not only we reach
wing industry. Yao underlines this:
our Climate Action goal by 2025 but
“I believe in sustainability, doing the right
also inspire other companies to follow
thing and taking the business in a new
the same path,” explains Clysner.
direction. Our work will impact the city,
To take its climate action goals even
local communities and the country. I beli-
further, solar panels will be placed on
eve premium brands will be on the rise
the roofs of each CUB brewery in
in the near future. People will become
Australia, which will reduce its impact
more willing to tune into brands who are
on the environment. All sites will remain
taking more care of the environment.”
connected to the grid, with potential
Wauters is also keen to highlight AB
access fed back into the system,
InBev’s aim to leave a long-lasting and
ensuring maximum efficiency.
meaningful legacy. “With the size of our
As people’s attitudes towards sustainability continue to shift, AB InBev
company, it’s amazing the impact we can have in the world,” she says pass-
E X E CU T I VE P RO FI LE
Jan Clysner Before leading Procurement and Sustainability at AB InBev APAC, I had the opportunity to do several Procurement roles in the company. These roles not only gave me the opportunity to build knowledge and experiences in several categories across the world, but also provided me the perfect platform of continuously learning
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“ I believe in sustainability, doing the right thing and taking the business in a new direction. Our work will impact the city, local communities and the country” — Terry Yao, Associate Procurement Director of Sustainability
ionately. “Sustainability is not just a trend, it’s our business and here to stay. It’s by leveraging our people and through our incredible strength at achieving results that we get to shape the future of the communities in which we live and work.” Clysner concludes by sharing his passion for sustainability. “In a region like Asia Pacific, each country has its own challenges, its own opportunities and we have the passionate people and scale to capture those. But we also recognize we cannot do this on our own, hence our 100+ Accelerator where we reach out to others to help us on our journey. At ABInBev we’ve been dedicated to sustainability for years, but now we are going further – with goals that will have measurable, positive impact on our communities.”
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