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Environmental: Reduce our Carbon Footprint

We will deliver continuous year on year improvements in our carbon performance.

A detailed review of our global energy consumption and GHG emissions data for the last four years can be found below within our Streamlined Energy and Carbon Reporting (‘SECR’) disclosure. In addition, in FY2022, we will work with the Science Based Targets Initiative to set approved science based carbon reduction targets to meet the goals of the Paris Agreement and limit global warming to well below 2°C. This entails reducing our Scope 1 and 2 emissions by 35% and our Scope 3 emissions by 25% by 2030. We have also pledged to be a carbon-neutral business by 2050. In addition to these targets, we will also include key climate change related risk indicators into our risk management processes.

In 2021, we established a working group to consider and assess the climate related risks and opportunities most pertinent to the Company. Work is now underway in order to align with the recommendations of the Taskforce for Climate-related Financial Disclosure (‘TCFD’) and disclose all key non-financial indicators and guidance in line with the Sustainability Accounting Standards Board (‘SASB’) Framework by FY2022.

Optimising our Manufacturing Sites

Conservation of Energy

The Group has employed various practices to conserve its use of energy. These include:

  • From 1 April 2021, 100% of the electricity, used in Wellpark, Clonmel and our UK depot network is provided by renewable sources. This has been achieved four years ahead of our target.
  • Biogas energy: anaerobic digestion technology at Wellpark Brewery and Clonmel generated 1,088,000M3 of biogas across both sites (7.7% of heat requirements at Wellpark and 12% at Clonmel).
  • By August 2021, we will have a fully operational 2MWH mounted solar panel array on two large roof areas at Clonmel, these will contribute 5-10% of the site energy demand at a reduced and fixed rate tariff over the next 20 years.
  • Pasteurisation control system: on-the-can pasteuriser at Wellpark Brewery delivered a 10% reduction in steam usage yearon-year, as well as further improving the finished product quality.
  • Wellpark also benefited from the installation of Variable Speed Drives in our electric motors, where possible. It is anticipated that these will save 30,000 kwh of electricity in 2021.
  • At Clonmel we are undertaking a number of initiatives, including:
    • Installation of a new boiler which increased efficiency from 78% to 92% saving 7,660 kwh.
    • Fitting thermostatic relief valves to radiators in the new manufacturing unit increased efficiency from 25% to 30% on each radiator.
    • Ammonia chilling plants energy upgrade, saving of 76,642KWh from March 2019.
    • LED lights for south tank farm and west tank farm, which will see savings of 10,900KW.

Our Energy Consumption position is set out below.

Notes on changes in Scope:
1. FY2018 / FY2019 petrol data not available.
2. FY2018/ / FY2019 Wood utilisation at Fruitissima (Portugal).
3. FY2019 – main changes due to acquisition of Mathew Clark Bibendum, and in-housing of Tennent’s distribution, with associated depots and transport fleet.
4. Plant investments / changes of fuel at plants (e.g. VHCC switch to LNG, Frutíssima (Portugal) switch away from wood to gas).
5. FY2021 now includes full Biogas for Clonmel and Wellpark

Carbon Emissions

We assess and manage climate change related risks and opportunities, including the impact on the availability and security of our sources of raw materials, such as aquifers, orchards and maltings.

We actively monitor our carbon emissions and have participated in the external, global disclosure system, Carbon Disclosure Project (‘CDP’) Climate Change Programme, since 2012. The Group was awarded a B rating in 2020.

In November 2020, Tennent’s Wellpark brewery in Glasgow, commissioned an innovative carbon capture facility, the largest in Scotland. Consisting of two tanks that store approximately 4,000 tonnes of CO2 per year and remove 100,000kms of road transport emissions. A similar carbon capture facility has been operating at Clonmel since 2008. We maximise use of recovered CO2 and use collected gas for product carbonation initially, and for product storage cover gas to ensure the correct product quality.

Given our sourcing of apples from orchards across the British Isles, the offset in carbon absorption means that the plant in Clonmel is effectively carbon neutral (for Scope 1 and 2 emissions).

Over the last 3 years we have improved carbon dioxide capture to 60%. In FY2022, it is forecast that we will be approximately 95% self-sufficient in CO2 at our manufacturing sites.

Waste Reduction

The Group has a long term objective of sending zero waste to landfill. In FY2021 our main manufacturing sites at Clonmel and Wellpark again both achieved this target. We will continue to implement a waste hierarchy approach through prevention, re-use and recycling:

  • In our manufacturing operations, we routinely monitor our waste stream and target improvement annually. We measure raw material usage and yields on a weekly basis to ensure the efficient use of our resources.
  • Within the Matthew Clark business, we have been maximising the use of return journeys when the vehicles are empty and backhauling cardboard and plastic to main depots. The cardboard and plastic are baled and sent for recycling. This not only negates the need for a standalone recycling service, but it also protects the quality of the recycled materials and ensures maximum recycling rates are achieved.
  • 100% of by-products are recycled for use as animal feed or organic compost. Over 15,000 tonnes of spent grain and apple pomace were used as animal feed in 2020, with the remainder of our waste either recycled or sent for energy recovery.
  • In Scotland in 2021 we will introduce bailing of can waste, which should reduce associated vehicle movements by 90%.
  • We continue to improve the quality of the loading on the wastewater discharged from our sites in Clonmel and Wellpark and this has improved by more than 90% in the last 2 years.
Optimising our Logistics Operations

We recognise that our carbon footprint extends beyond manufacturing and the distribution and transport of our products also contributes to the Group’s carbon footprint. During FY2021, we reported for the first full year the carbon emissions associated with our transport fleet through CDP. The Group has an “End-to-End” supply chain model in the UK and Ireland, with circa 360 vehicles in operation. This allows efficiencies to be identified across every stage of the product journey.

As mentioned in the CEO’s Review, the optimisation of C&C’s English and Scottish delivery networks, is scheduled to be completed in FY2022. This will consolidate volumes from three separate networks into two, bringing all of our final mile English distribution in-house, which will drive ongoing efficiencies. In Scotland, this will save approximately 600,000 km/annum and 300 to 400 tonnes of CO2 emissions, while in England this will save approximately 1.39m kms/annum and approximately 800 tonnes of CO2 emissions.

Our Fleet

A Group-wide logistics forum has been established to discuss sustainability requirements for our fleet in order to deliver a unified approach and share learnings across the Group to reduce delivery miles and carbon footprint.

All new vehicles leased or purchased must meet the EURO 6 standard and 93% of our fleet are currently EURO 6. We are reviewing the profile of our fleet whilst also investigating opportunities to reduce its impact such as alternative fuel source vehicles (compressed natural gas/liquefied natural gas hydrogen/electric) and amending vehicle specification (by for example, applying the Direct Vision Standard for heavy goods vehicles which assesses and rates how much the driver can see directly from their cab in relation to other road users).

Across Tennent’s and Matthew Clark we have introduced 34 solar-assisted trucks into the delivery fleet. With solar panels on the roofs, the trucks use solar energy to power all on-board ancillary equipment, cutting fuel consumption by 5% and lowering CO2 emissions by four tonnes per vehicle annually.

Driving efficiencies

We are eliminating the need for secondary loads, by introducing direct delivery of orders from manufacturing sites to customer premises. In FY2021, we further increased the level of direct deliveries from the Clonmel and Wellpark sites, which has seen a reduction in the number of loads delivered by over 200.

By working in collaboration with raw material and third-party drinks suppliers we are reducing empty running of trucks. Vehicles delivering to C&C’s operational sites are backloaded with outbound customer deliveries.

Software including transport network, route planning and on-road training for driver habits have maximised fuel efficiency and limited frequency of runs to distance areas each week.

As part of tender discussions with providers and through ongoing operational initiatives we will look to first measure our carbon impact and then, through consolidation and direct routing, reduce it. An example of this is in our Clonmel manufacturing site where we measure the efficiency of container utilisation by identifying opportunities to reload import containers with export orders therefore reducing the empty running of containers to and from the port.

Increasing the Recyclable Rate for our Brands and Improve Sustainable Packaging

Our lightweight can programme at Wellpark and Clonmel, further optimising the material used, has removed 260 tonnes of aluminium from the supply chain. As an interim measure whilst moving out of plastic, we introduced a hi-cone plastic ring, which has a 50% recycled content which saw 20 tonnes less of virgin plastic used.

In Clonmel, we have adopted a number of initiatives including installation of a compactor for recyclables to increase payload and to reduce truck movements of recyclables by 75%.

The Group has made excellent progress on its ambitious programme to be out of single-use plastics (shrink and hi and mid cone rings) on the packaging of our canned products by 2022, reducing the environmental impact and ecological footprint of our products. We are the only brewer who is a member of the UK Plastics Pact, which has additional targets on plastic packaging, waste and recyclates. The Group is committed to utilising sustainable packaging. Due to COVID-19 restrictions on the on-trade, in FY2021, 9% of the total volume produced by C&C was in 100% returnable and reusable packaging formats.

The decision to be out of plastics has required significant capital investment of €11.5 million in the Wellpark and Clonmel production sites, which focused on the canning operations. The Group’s new primary packaging material will be cardboard which is fully and easily recyclable.

At Wellpark in March 2020, under Phase 1 of the out of single-use plastics initiative, Tennent’s moved from shrink wrap to FEC (cardboard) packaging on 10, 12 and 15 packs. In January 2021, Tennent’s announced Phase 2 of the project that brought about significant equipment and infrastructure changes at Wellpark. When the work is complete, by summer 2021, all Tennent’s canned product will be in fully recyclable cardboard, removing 150 tonnes of plastic from Tennent’s Lager can packs, including more than 100 million plastic rings. The investment also recognises the future market changes e.g. the Deposit Return Scheme (‘DRS’) introduction in Scotland, planned for July 2022.

The out of single-use plastics work in Clonmel, commenced in January 2021, is expected to complete in September this year. This work will again see plastic packaging removed from our Bulmers, Magners and our other cider branded products and replaced with recyclable cardboard, removing a further 150 tonnes of plastic. In Clonmel, we have also reduced the amount of plastic in polyethylene terephthalate (‘PET’) wrap by avoiding double wrapping pallets. This reduces the amount of plastic used by 10 tonnes per annum. While reducing the amount of plastic in PET preforms sees a reduction of 72 tonnes of plastic used. Reduced polymer usage in the wastewater treatment plant, results in a 20% reduction in polymer usage per annum.

Matthew Clark is working with suppliers to rescue plastic used in packaging and ensure green initiatives are recorded. The British Retail Consortium process ensures that all suppliers are ISO14001 certified or have an environment management system that shows carbon reduction plans.

Piloting electric vehicle distribution

Electric vehicles are being trialled for deliveries in urban areas. An electricpowered van has been utilised for smallvolume deliveries of Five Lamps craft beer in Dublin and a trial of electric vans has taken place at the Matthew Clark Park Royal depot. In Scotland, we are investigating alternative fuel types for vehicles, electric vehicles for Wellpark to Cambuslang trips and hydrogen for longer distance inter depot shunts.

During the year, two eight tonne diesel forklifts were replaced with new gas powered trucks, saving 14 tonnes of CO2 per annum.

Our six pillars