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Carlsberg Group Sustainable Packaging Programme 13 th of June 2013 Simon Hoffmeyer Boas CSR Manager, Group CSR & Public Affairs Dir +45 3327 4653 Mob +45 2292 4653 [email protected]

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Carlsberg Group Sustainable Packaging Programme 13th of June 2013

Simon Hoffmeyer Boas

CSR Manager, Group CSR & Public Affairs

Dir +45 3327 4653 Mob +45 2292 4653

[email protected]

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What to find in this presentation

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1. Strategy

2. Sustainable packaging overview – What is it?

3. Sustainable packaging in Carlsberg

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Integrating CSR throughout our value chain is one of the five core strategic levers

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How we work with CSR in Carlsberg Group

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ExCom KPI’s linked to CSR. 10% of performance relying on CSR CRPM results in 2013

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Integrate CSR throughout our value chain – key actions 2013

Implement and live by CSR policies

Obtain leadership on sustainable packaging among brewers

Communicate CSR

“The Policies outline the minimum standard that everyone must adhere to, both in the letter and the spirit”

KEY ACTIONS • Ensure compliance with

all CSR policies • Increase the % score on

the CSR Policy assessment scale per country

• Implement new measures introduced by Policy owners swiftly

Advance green brewer position

“We want to become leaders among brewers within sustainable packaging to reduce costs and environmental impact”

“We must tell the world about our efforts to be a responsible brewer in order to improve our reputation”

“We are the world’s most efficient brewer in terms of water & energy use and CO2 emissions. Lets keep it that way!”

KEY ACTIONS • Set target for %

reduction of weight and environmental impact of packaging

• Inclusion of LCA tool in NPD processes

• Engage customers and consumers

KEY ACTIONS • Increase external CSR

reporting to local stakeholders through events, reports etc.

• Register and share CSR stories locally and globally

• Increase CRPM scores on CSR relevant metrics

KEY ACTIONS •Support reduction of energy and water consumption •Share best practices •Set annual targets for water and energy use and report quarterly

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A sustainable packaging initiative is an initiative that reduces environmental impact

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Simple material changes that are more environmentally friendly

Some material replacements require customer behavior change to realize benefits

Eliminate packaging materials that are

harmful to human and animal health,

e.g. PVCs

Avoid toxics

Switch from virgin materials to recycled

ones, reducing waste and lifecycle

energy consumption

Recycled Content

Switch from petrol- or chemical-based

materials to those that use renewable,

eco-friendly resources

Bio-Based

Reduce the use of packaging materials

that cannot be converted into another

viable use

Recyclable

Replace single-use disposable

packaging with multiple-use or refillable

alternatives (which the customer must

reuse/refill)

Reusable

Switch to materials that decompose to

make soil, mulch or fertilizer; most

compostable packaging is not suitable

for backyard compost heaps

Compostable

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A sustainable packaging initiative is an initiative that reduces environmental impact

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Changes to the design of products/packaging

Fundamental redesign of the supply chain with sustainability in mind

Decrease amount of packaging

associated with shipping each product;

eliminate packaging altogether where

possible

Decrease Packaging to

Product Ratio

Increase packaging efficiency by

decreasing product weight or increasing

product concentration

Increase Product Density

Change packaging shape so that it

ships most efficiently when packed into

shipping vehicle

Improve cube efficiency

Incorporate recycled materials into new

products, thus “closing the loop” by

creating a new use for old packaging

New Products

Identify less wasteful, labor-intensive

ways to achieve the same packaging

goals by transforming the shipping

phase of the supply chain life cycle

Shipping Coordination

Integrate sustainable packaging

principles to upstream phases of supply

chain, including the source phase as

well as the deliver phase

Up-stream Packaging

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There are many current and future challenges in relation to packaging

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• Increased regulation

• High environmental impact

• Customer pressure to reduce impact

• Branded waste

• Consumers expect industry

to solve the issues

• Volatile prices

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Packaging accounts for ~45% of our CO2 emissions, and energy continues to be a global issue

9 Source: McKinsey report 2009

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The Sustainable Packaging Project has 3 pillars

“Reduce environmental impact and weight of primary and secondary packaging”

“Accelerate sustainable packaging innovations and explore new areas to reduce impact”

“Increase awareness of sustainable packaging and promote recycling among consumers and customers”

Objective

Performance improvements

REDUCE & REUSE

Innovation

RETHINK

Awareness and advocacy

RECYCLE Work stream

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An example from each pillar

•Weight reduction

•Refillable Glass Bottle

•Encourage consumers

•Cradle-2-Cradle

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Refillable Glass Bottles

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Complexity

Scuffing

CAPEX

Lowest env.

Impact

Lowest COGS

Consumer engagement

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Online branded waste – ”Packaging waste”

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What is C2C’s role in achieving our ambition

Eco-Effective

Eco-Efficient

Cradle to Cradle®

Sustainability

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Carlsberg Group CSR Report 2012 available online at: www.carlsberggroup.com/csr

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