Reduction of Greenhouse Gases

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

SBT
SBT

As an environmental management measure, domestic Group companies have set Asahi Carbon Zero, new medium- to long-term goals related to climate change, with the aim of realizing the sustainability of the global environment.
Asahi Carbon Zero, which sets the greenhouse gas emissions targets, has obtained approval from the Science Based Targets initiative (SBTi), meaning that the goals have been recognized as science-based targets for keeping the global temperature increase below 2 degrees Celsius in accordance with the Paris Agreement.

Asahi Carbon Zero targets
2050 Reach zero absolute greenhouse gas emissions
2030 Scope 1 and 2 30% reduction
Scope 3 30% reduction

(relative to 2015 levels)

Under Asahi Carbon Zero, the Asahi Group commits to a 30% reduction in absolute Scopes 1, 2 and 3 greenhouse gas emissions related to its domestic operations by 2030 from a 2015 base-year, and zero absolute greenhouse gas emissions by 2050.
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.

CO2 Emissions

The 2018 result of the Scope 1 and 2 CO2 emissions of the Asahi Group was calculated by expanding the area of the analysis to companies in Europe in addition to the conventional Japan and Oceania. When compared to the same area of analysis as the previous year, which excludes Europe, CO2 emissions were reduced by 5.7% compared to the previous year and by 5.9% compared to 2015.This progress is beyond the SBT target pace (30% reduction in 2030 relative to the 2015 level). In addition, the result of Scope 3 CO2 emissions was calculated for the analysis area of the domestic alcoholic liquor and beverage businesses, which reported a 0.4% reduction compared to the previous year and 2.1% reduction compared to 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.

Changes in CO2 emissions and basic units
Changes in CO2 emissions from domestic businesses (totals 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 of overseas CO2 emissions included only Oceania up to 2017 and then Oceania and Europe in 2018.
*The data above cover Scope 1 and 2 emissions from domestic 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 2014 2015 2016 2017 2018
1. Alcoholic beverages business Scope1 209 205 209 209 203
Scope2 77 78 72 73 69
Scope1+2 286 283 281 282 272
Scope3*1 - 1,467 1,464 1,415 1,309
2. Soft drinks business Scope1 83 84 82 76 74
Scope2 63 70 69 67 57
Scope1+2 146 154 151 143 131
Scope3*2 - 1,493 1,705 1,496 1,590
3. Food business Scope1 27 27 27 26 26
Scope2 43 43 43 40 30
Scope1+2 70 70 70 66 56
4. Other businesses Scope1 20 23 25 26 26
Scope2 9 9 10 10 10
Scope1+2 29 32 35 37 36
5. Overseas businesses Scope1 24 23 23 23 133
Scope2 58 59 62 69 253
Scope1+2 82 82 86 91 387
6. Total in Scope 1 to 3 Scope1 363 361 367 361 463
Scope2 251 260 256 259 419
Scope1+2 613 621 623 619 881
Scope3 - 2,960 3,169 2,912 2,899
Scope1+2 basic units
(t/one million yen)
302 302 321 304 352
Scope3 basic units
(t/one million yen)
- 1,441 1,636 1,430 1,159
Sales (billion yen) 2,029 2,054 1,938 2,036 2,500

*1Asahi Breweries, Ltd. only
*2Asahi Soft Drinks Co., Ltd. only

CO2 emissions by country

Unit: kiloton-CO2

Country Scope 2014 2015 2016 2017 2018
Japan
(Total of above-mentioned businesses 1 to 4)
Scope1 339 338 344 338 329
Scope2 192 200 194 190 165
Scope1+2 531 539 537 528 495
CO2 emissions contributed by green energy 12 13 13 12 11
Total of Scope1+2 519 525 525 516 484
Scope3 0 2,960 3,169 2,912 2,899
Australia
(The figures in this and subsequent sections are equivalent to the breakdown in above-mentioned business 5)
Scope1 19 18 19 18 18
Scope2 57 58 61 68 66
Scope1+2 76 76 80 85 83
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
Scope2 - - - - 1
Scope1+2 - - - - 2
Italy Scope1 - - - - 20
Scope2 - - - - 15
Scope1+2 - - - - 36
The Netherlands Scope1 - - - - 8
Scope2 - - - - 11
Scope1+2 - - - - 18
Czech Republic Scope1 - - - - 20
Scope2 - - - - 72
Scope1+2 - - - - 92
Slovakia Scope1 - - - - 5
Scope2 - - - - 1
Scope1+2 - - - - 7
Romania Scope1 - - - - 19
Scope2 - - - - 18
Scope1+2 - - - - 36
Hungary Scope1 - - - - 7
Scope2 - - - - 6
Scope1+2 - - - - 13
Poland Scope1 - - - - 30
Scope2 - - - - 64
Scope1+2 - - - - 94
Total Scope1 363 361 367 361 463
Scope2 251 260 256 259 419
Scope1+2 613 621 623 619 881
Scope3 0 2,960 3,169 2,912 2,899

*Third party verification for Scope 1 + 2 was conducted from the following years: Japan: 2014, Oceania: 2015, Europe: 2018

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

Unit: kilotons-CO2

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

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.

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 of overseas energy consumption included only Oceania up to 2017 and then Oceania and Europe in 2018.
*The data above cover Scope 1 and 2 emissions from domestic and overseas businesses.

Energy consumption and basic units by business

Unit: GWh

Business name 2014 2015 2016 2017 2018
1. Alcoholic beverages business 1,265 1,231 1,245 1,249 1,214
2. Soft drinks business 553 573 574 543 524
3. Food business 208 208 212 204 197
4. Other businesses 112 124 137 143 140
5. Overseas businesses 188 187 196 201 1,156
6. Total of items 1 to 5 2,325 2,323 2,363 2,340 3,231
7. Basic unit (kWh / one million yen) 1,146 1,131 1,220 1,149 1,292
Energy consumption by country

Unit: GWh

Country 2014 2015 2016 2017 2018
Japan
(Total of above-mentioned businesses 1 to 4)
2,138 2,136 2,168 2,139 2,075
Australia
(The figures in this and subsequent sections are equivalent to the breakdown in above-mentioned business 5)
155 155 164 167 165
New Zealand 33 32 32 34 35
U.K. - - - - 6
Italy - - - - 88
The Netherlands - - - - 31
Czech Republic - - - - 310
Slovakia - - - - 37
Romania - - - - 57
Hungary - - - - 154
Poland - - - - 272
Total 2,325 2,323 2,363 2,340 3,231

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
Status of installation of main environment and energy saving equipment (as of December 31, 2018)
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 4

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 conductes 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. An SOFC generating unit for test use, jointly developed by the Asahi Group and Kyushu University, was employed for power generation. The SOFC unit continues to generate power after more than 2,000 hours of successive operation as of May, 2018. The Asahi Group aims to generate power for 10,000 hours to assess the effects, including seasonal fluctuations caused by refined biogas.

Development of a New Clean Energy Model

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 2018 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 94,000 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.

*1 Selected 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 2018 (recognized by JQA)
*2 The 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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