Reduction of Greenhouse Gases

Asahi Carbon Zero: the Asahi Group's medium- to long-term goals

SBT
SBT

As part of its environmental management efforts, in 2018, the Asahi Group established medium and long-term goals with regard to climate change in the form of the Asahi Carbon Zero initiative, with the aim of realizing the sustainability of the global environment.
Asahi Carbon Zero sets medium and long-term targets for reducing greenhouse gas emissions, and has obtained approval from the Science Based Targets (SBT) initiative, meaning that it has been recognized as a science-based standard for keeping the global temperature increase below 2°C in accordance with the goal set by the Paris Agreement.
As of 2020, the Group has expanded the scope of Asahi Carbon Zero to include operating companies overseas, and will continue to expand the scope of the initiative going forward.

Asahi Carbon Zero targets
Target Scope
2050 Scope 1,2 Aim to achieve zero greenhouse gas emissions Operating companies in Japan, Asahi Breweries Europe Ltd, Asahi Holdings (Australia) Pty Ltd
Scope 3 Aim to achieve zero greenhouse gas emissions Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., Asahi Breweries Europe Ltd, Asahi Holdings (Australia) Pty Ltd
2030 Scope 1,2 30% reduction (in comparison with 2015 levels) Operating companies in Japan, Asahi Breweries Europe Ltd, Asahi Holdings (Australia) Pty Ltd
Scope 3 30% reduction (in comparison with 2015 levels) Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., Asahi Breweries Europe Ltd, Asahi Holdings (Australia) Pty Ltd

*Scope 3 targets for Asahi Breweries Europe, Ltd. and Asahi Holdings (Australia) Pty Ltd are in comparison with 2020 levels.
*SBT applies to operating companies in Japan only

With Asahi Carbon Zero, the Asahi Group aims to achieve zero greenhouse gas emissions in Scopes 1, 2 and 3 by 2050, and reduce emissions by 30% for Scopes 1, 2 and 3 (in comparison with 2015 levels) by 2030.
In order to achieve its targets, the Asahi Group will implement a variety of measures for saving energy and preserving the environment, including the recovery and use of waste heat, such as steam from the manufacturing processes, the application of cold energy, including energy gained through the normal-temperature replenishment of rows of cans, the introduction of cogeneration facilities, fuel conversion and activities that practically apply the ISO 14001 standard in all of its business establishments.

Examples of Initiatives Aimed at Achieving Carbon Zero

In order to achieve carbon zero in its value chain, the Asahi Group is taking various measures to reduce CO2 emissions in Scope 1, 2 and 3. The CO2 emission ratios at each stage of the value chain based on the GHG Protocol are 65% for Ingredient production and transportation, 19% for manufacture, 4% for distribution, 10% for sales, and 1% for consumption.

Examples of Initiatives Aimed at Achieving Carbon Zero
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CO2 Emissions

The Asahi Group's Scope 1 and 2 CO2 emissions for 2019 were calculated by expanding the area of analysis to include operating companies in Southeast Asia, in addition to the existing countries and regions (Japan, Oceania and Europe). When compared to the same area of analysis as the previous year, which excluded Southeast Asia, CO2 emissions were reduced by 5.7% in comparison with the previous year, and by 11.5% in comparison with 2015 for operating companies in Japan. This progress exceeds the SBT target pace (30% reduction by 2030 relative to the 2015 level). In addition, results for Scope 3 CO2 emissions were calculated for the alcoholic beverage and soft drinks businesses in Japan, which reported a 0.6% increase in emission in comparison with the previous year, and a 1.4% reduction in comparison with 2015.

*This figure does not reflect CO2 emissions avoided by Tradable Green Certificates (TGC).

The Asahi Group will continue to actively make an effort to meet the SBT target of reducing CO2 emissions.

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Changes in CO2 emissions and basic units
Changes in CO2 emissions and basic units

*Net sales in accordance with the International Financial Reporting Standards (IFRS) was used for basic unit calculations from 2016.
*The area of analysis for overseas CO2 emissions included only Oceania up to 2017, then Oceania and Europe as of 2018, and then Oceania, Europe and Southeast Asia as of 2019.
*The data above cover Scope 1 and 2 emissions from japan and overseas businesses.

With the introduction of the Green Power CO2 Reduction Certification System by the Japanese government in 2014, CO2 emissions avoided by Tradable Green Certificates (TGC) can be used in calculations, reporting and announcements of greenhouse gas emissions as stipulated in the Act on Promotion of Global Warming Countermeasures. From the 2014 results, we can also indicate CO2 emissions reflecting the CO2 emissions avoided by TGC. Note that the figures in the following table only include the CO2 emissions contributed by green energy.

CO2 emissions and basic units by business

Unit: kilotons-CO2

Business name Scope 2015 2016 2017 2018 2019
1. Alcoholic beverages business Scope1 205 209 209 203 194
Scope2 78 72 73 69 64
Scope1+2 283 281 282 272 258
Scope3*1 1,467 1,464 1,415 1,309 1,265
2. Soft drinks business Scope1 84 82 76 74 83
Scope2 70 69 67 57 47
Scope1+2 154 151 143 131 130
Scope3*2 1,493 1,705 1,496 1,590 1,658
3. Food business Scope1 27 27 26 26 24
Scope2 43 43 40 30 24
Scope1+2 70 70 66 56 47
4. Other businesses Scope1 23 25 26 26 25
Scope2 9 10 10 10 10
Scope1+2 32 35 37 36 35
5. Overseas businesses A*3 Scope1 23 23 23 23 24
Scope2 59 62 69 67 66
Scope1+2 82 86 91 90 91
6. Overseas businesses B*4 Scope1 - - - 111 129
Scope2 - - - 186 220
Scope1+2 - - - 297 349
7. Total: All businesses Scope1 361 367 361 463 479
Scope2 260 256 259 419 430
Scope1+2 621 623 619 881 909
Scope3 2,960 3,169 2,912 2,899 2,923
Scope1+2 basic units (Kg-CO2/one million yen)*5 302 321 304 352 365
(Kg-CO2e/kl)*6 85 79 81 72 76
Scope3 basic units
(Kg-CO2/one million yen)
1,441 1,636 1,430 1,159 1,175
Sales (billion yen) 2,054 1,938 2,036 2,500 2,489

*1Asahi Breweries, Ltd. only
*2Asahi Soft Drinks Co., Ltd. only
*3Overseas businesses A includes businesses for which at least three successive years' worth of data has been collected (Oceania)
*4Overseas businesses B includes businesses for which less than three years' worth of data has been collected (Europe and Southeast Asia)
*5CO2 emission basic unit of production per unit revenue
*6CO2 emission basic unit of production per kl produced. For Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., Asahi Holdings (Australia) Pty Ltd, Asahi Breweries Europe Ltd, and Asahi Group Holdings Southeast Asia Pte. Ltd.

CO2 emissions by country

Unit: kiloton-CO2

Country Scope 2015 2016 2017 2018 2019
Japan
(Total of above-mentioned businesses 1 to 4)
Scope1 338 344 338 329 325
Scope2 200 194 190 165 144
Scope1+2 539 537 528 495 469
CO2 emissions contributed by green energy 13 13 12 11 10
Total of Scope1+2 525 525 516 484 459
Scope3 2,960 3,169 2,912 2,899 2,918
Australia
(The figures in this and subsequent sections are equivalent to the breakdown in above-mentioned business 5)
Scope1 18 19 18 18 19
Scope2 58 61 68 66 65
Scope1+2 76 80 85 83 85
New Zealand Scope1 5 5 5 5 5
Scope2 1 1 1 1 1
Scope1+2 6 6 6 6 6
U.K. Scope1 - - - 1 1
Scope2 - - - 1 1
Scope1+2 - - - 2 1
Italy Scope1 - - - 20 27
Scope2 - - - 15 10
Scope1+2 - - - 36 37
The Netherlands Scope1 - - - 8 8
Scope2 - - - 11 8
Scope1+2 - - - 18 16
Czech Republic Scope1 - - - 20 20
Scope2 - - - 72 61
Scope1+2 - - - 92 82
Slovakia Scope1 - - - 5 6
Scope2 - - - 1 1
Scope1+2 - - - 7 7
Romania Scope1 - - - 19 19
Scope2 - - - 18 15
Scope1+2 - - - 36 34
Hungary Scope1 - - - 7 6
Scope2 - - - 6 6
Scope1+2 - - - 13 12
Poland Scope1 - - - 30 30
Scope2 - - - 64 81
Scope1+2 - - - 94 111
Malaysia Scope1 - - - - 8
Scope2 - - - - 32
Scope1+2 - - - - 40
Indonesia Scope1 - - - - 3
Scope2 - - - - 2
Scope1+2 - - - - 5
Vietnam Scope1 - - - - 1
Scope2 - - - - 1
Scope1+2 - - - - 2
Myanmar Scope1 - - - - 1
Scope2 - - - - 1
Scope1+2 - - - - 2
Total Scope1 361 367 361 463 479
Scope2 260 256 259 419 430
Scope1+2 621 623 619 881 909
Scope3 2,960 3,169 2,912 2,899 2,923

*Third-party validation for Scopes 1 and 2 began in Japan as of 2014, In Oceania as of 2015, in Europe as of 2018, and in Southeast Asia as of 2019.

Breakdown of Scope 3 (Asahi Breweries, Ltd. + Asahi Soft Drinks Co., Ltd.)

Unit: kilotons-CO2

Category 2015 2016 2017 2018 2019
(1) Products and services purchased 1,821 1,845 1,821 1,862 1,863
(2) Capital goods 81 314 141 98 109
(3) Fuel not included in Scope 1 and 2 and energy-related activities 61 61 60 60 71
(4) Transportation and delivery (upstream) 433 417 370 386 387
(5) Waste generated in the business 5 4 4 4 4
(6) Business trip 1 1 1 1 1
(7) Commute of employees 4 3 3 3 4
(8) Lease assets (upstream) Not applicable Not applicable Not applicable Not applicable Not applicable
(9) Transportation and deliver (downstream) 148 143 137 138 144
(10) Processing of sold products Not applicable Not applicable Not applicable Not applicable Not applicable
(11) Use of sold products 362 327 325 296 289
(12) Disposal of sold products 45 55 50 52 50
(13) Lease assets (downstream) Not applicable Not applicable Not applicable Not applicable Not applicable
(14) Franchising Not applicable Not applicable Not applicable Not applicable Not applicable
(15) Investments Not applicable Not applicable Not applicable Not applicable Not applicable
Total GHG emissions 2,960 3,169 2,912 2,899 2,923

CO2 emissions from the assets being leased are excluded from (8) Lease assets (upstream) because they are counted in Scope 1 + 2.
No interim products exist and (10) Processing of sold products is not applicable.
The CO2 emissions from the assets being leased are not applicable for (13) Lease assets (downstream), because they are counted in Scope 1 + 2.
(14) Franchising is not applicable because nothing applies to it.
(15) Investments are not applicable due to business characteristics.

2019 Scope 3 Greenhouse Gas Emissions (Asahi Breweries, Ltd. and Asahi Soft Drinks Co., Ltd.)

Unit: t-CO2e

GHG Emissions (t-CO2e)
Organizations covered
Changes in energy consumption and basic units
Changes in energy consumption and basic units

*Net sales in accordance with the International Financial Reporting Standards (IFRS) was used for basic unit calculations for 2016.
*The area of analysis for overseas energy consumption included only Oceania up to 2017, then Oceania and Europe as of 2018, and then Oceania, Europe and Southeast Asia as of 2019.
*The data above cover Scope 1 and 2 emissions from japan and overseas businesses.

Energy consumption and basic units by business

Unit: GWh

Business name 2015 2016 2017 2018 2019
1. Alcoholic beverages business 1,231 1,245 1,249 1,214 1,176
2. Soft drinks business 573 574 543 524 555
3. Food business 208 212 204 197 190
4. Other businesses 124 137 143 140 136
5. Overseas businesses A 187 196 201 200 209
6. Overseas businesses B - - - 956 1,169
7. Total of items 1 to 6 2,323 2,363 2,340 3,231 3,434
8. Basic unit (kWh / one million yen) 1,131 1,220 1,149 1,292 1,380
Energy consumption by country

Unit: GWh

Country 2015 2016 2017 2018 2019
Japan
(Total of above-mentioned businesses 1 to 4)
2,136 2,168 2,139 2,075 2,057
Australia
(The figures in this and subsequent sections are equivalent to the breakdown in above-mentioned business 5, 6)
155 164 167 165 174
New Zealand 32 32 34 35 35
U.K. - - - 6 6
Italy - - - 88 181
The Netherlands - - - 31 67
Czech Republic - - - 310 307
Slovakia - - - 37 36
Romania - - - 154 153
Hungary - - - 57 51
Poland - - - 272 257
Malaysia - - - - 82
Indonesia - - - - 18
Vietnam - - - - 4
Myanmar - - - - 8
Total 2,323 2,363 2,340 3,231 3,434

Installation of Energy-Saving Equipment

The Asahi Group is introducing energy-saving equipment in an ongoing effort, such as fuel conversion equipment and anaerobic wastewater processing equipment that effectively utilizes methane contained in wastewater at its breweries and other production sites.

photo:Cogeneration system
Cogeneration system
photo:Anaerobic wastewater processing system
Anaerobic wastewater
processing system
photo

In support of Japan Softdrink Vending Machine Council's goal to achieve a 60 percent reduction in total electricity consumption of soft drink vending machines compared to 2005 by 2050, Asahi Soft Drinks Co., Ltd. is promoting the switch to super-efficient heat-pump vending machines. These machines can cool and heat at the same time, using heat generated during cooling to warm up other items, and use about 40 percent less electricity on an annual basis compared to conventional vending machines.

Status of installation of main environment and energy saving equipment (as of December 31, 2019)
Items Company's Name Factory Name Cogeneration system Conversion to gas for fuel Anaerobic wastewater processing Solar power generator
Alcoholic beverages business:
17 places
Asahi Breweries, Ltd.:
8 breweries
Hokkaido Brewery
Fukushima Brewery
Ibaraki Brewery
Kanagawa Brewery
Nagoya Brewery
Suita Brewery
Shikoku Brewery
Hakata Brewery
The Nikka Whisky Distilling Co., Ltd:
7 distilleries
1 plant
Yoichi Distillery
Hirosaki Distillery
Miyagi Distillery
Tochigi Plant
Kashiwa Distillery
Nishinomiya Distillery
Moji Distillery
Satsuma Tsukasa Distillery
Sainte Neige Wine Co., Ltd. Sainte Neige Winery
Soft drinks business:
7 places
Asahi Soft Drinks Co., Ltd.:
7 factories
Fujisan Factory
Fujiyoshida Factory
Hokuriku Factory
Akashi Factory
Rokko Factory
Gunma Factory
Okayama Factory
Food business:
9 places
Asahi Group Foods Ltd.:
4 factories
1 plant
Ibaraki Factory
Osaka Factory
Tochigi Koganei Factory
Tochigi Sakura Factory
Okayama Plant(No.1 & No.2 Plant)
Nippon Freeze Drying Co., Ltd. Nagano Factory
Wako Food Industry Co., Ltd.: Nagano Factory
Asahi Beer Malt, Ltd.:
2 factories
Yasu Factory
Koganei Factory
Other Asahi Calpis Wellness Co., Ltd. Gunma Factory
Total 9 27 17 5

Development of a New Clean Energy Model

Solid Oxide Fuel Cell (SOFC) Tests

The Asahi Group developed a high-purity system that can be introduced at low cost by constructing a refining process for removing impurities from biogases obtained from anaerobic wastewater treatment facilities at breweries. The Asahi Group conducts power generation tests for a long period using a solid oxide fuel cell (SOFC) generating unit and a refined biogas obtained through this process as of May, 2018. The power generation tests involved testing of an experimental SOFC generating unit, jointly developed by the Asahi Group and Kyushu University, and in May 2019 succeeded in generating power successively for 10,000 hours. Based on this results of these tests, Asahi Breweries is currently constructing biomethane refining facilities and fuel cells at its Ibaraki Brewery. These facilities are planned to commence test operation in 2020.

Development of a New Clean Energy Model

Demonstrative Testing of CO2 Separation and Recovery Equipment

Experimental CO2 separation and recovery equipment is able to separate CO2 from exhaust gases and recover it at a high rate of efficiency using an adsorbent fluid, which has the property of absorbing CO2 at low temperatures and releasing it at high temperatures.
Over a period of approximately 18 months beginning in January 2020, the Asahi Group has been using experimental CO2 separation and recovery equipment supplied by Toshiba Energy Systems & Solutions Corporation to conduct demonstrative tests to measure performance and cost-effectiveness in recovering CO2 from boiler exhaust gases and assess the possibility of deploying them at its plants.
In the future, the Group plans to make use of the recovered CO2 in alcoholic beverages and soft drinks, and to develop other applications for its use.


Experimental CO2 separation and recovery equipment

Biogas Power Generation and Boiler Equipment

The Asahi Group originally used the biogas (methane gas) obtained from the anaerobic wastewater treatment facilities for treating its plant wastewater as a combustion energy source for its boilers, but is now also utilizing it as a combustion energy source for power generation. Some plants use both generators and boilers, and are contributing to reducing the Group's CO2 emissions through the use of these new technologies.

  • photo01Methane fermentation tank
  • photo02Methane gas power generators

Using green power

Using green power for the production of beer products

In 2009, Asahi Breweries, Ltd. entered into a contract with Japan Natural Energy Company Limited to buy 40,000,000 kWh per year of green power generated by wind and biomass energy sources-the largest contract of its kind in Japan's food industry at the time. Currently, green power, which is energy that is considerate of the environment, is used to produce Asahi Super Dry beer 350 ml cans and all beer products in gift sets across all of our breweries. Green power is generated from wind power and biomass, natural energies that have a low burden on the global environment.
Asahi Super Dry products manufactured using green power, including 350 ml beer cans, product packaging, and outer boxes for gift sets, bear the “Green Energy” label. In addition, the total green power usage volume from 2009 to 2019 was the highest of all “Green Energy” label products in Japan*1. This initiative has contributed to a cumulative total reduction in CO2 emissions of approximately 102,000 tons*2.

Using Tradable Green Certificates (TGC)

The Tradable Green Certificate system is being used to ensure that green power is used to fill the total electrical power needs of the Asahi Group Holdings headquarters and also the adjacent restaurant buildings, Annex and Flamme d'Or. The Tradable Green Certificate system works by issuing certificates to companies to purchase the “environmental value” of electrical power generated from natural energy resources. Companies and organizations holding these certificates are recognized as contributing to the spread of natural energy use reflecting environmental improvements commensurate with the amount of power denoted on the certificate.

*1Selected from among products with the “Green Energy” labels as the No. 1 in Japan in terms of green power usage volume between May 2009 and December 2019 (recognized by JQA)
*2The CO2 emissions coefficient used is the latest, issued annually by the Federation of Electric Power Companies of Japan.
(From 2016 onwards, the coefficient used is that provided by the Electric Power Council for a Low Carbon Society (ELCS))

SuperDry with the “Green Energy” labels
Photo: Asahi Head Office
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