brewing industry emission reporting protocol

8/12/2019 Brewing Industry Emission Reporting Protocol

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December 2013 |Version3.0

BEVERAGE

INDUSTRY

ENVIRONMENTAL

ROUNDTABLE

BEVERAGEINDUSTRYSECTORGUIDANCE

FORGREENHOUSEGASEMISSIONS

REPORTING


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Acknowledgements|1December2013

BeverageIndustryEnvironmentalRoundtable2013

ACKNOWLEDGEMENTS

ThisBeverage IndustrySectorGuidancedocumentwasdevelopedthroughacollaborativeeffortoftheBeverage

Industry

Environmental

Roundtable

(BIER).

The

global

beverage

companies

which

participate

inBIERhavedeveloped thisprotocol inaneffort tobetterunderstand theGHGemissionsassociated

withour industry.ThisworkproductsupportsBIERsmissionofestablishingacommonframeworkfor

stewardshipintherealmofenergyefficiencyandclimatechangemitigation.

AsmembersofBIERsSectorGuidanceWorkingGroup,thefollowingindividualscontributedsignificant

effortsinthedrafting,perspectiveanalysis,andimprovementofBIERscontributionstothereductionof

GHGemissionsinthebeverageindustry:

Member Company

AndyBattjes BrownFormanCorporation

CordenPorter BrownFormanCorporation

JeanChristopheBligny Danone

GeertHuysmans TheCocaColaCompany

PaulBruijn Heineken

PatriceRobichon PernodRicard

RobertterKuile PepsiCo

EskildAnderson Carlsberg

BernardPruvost NestlWaters

BertShare ABInBev

NickAmpe NewBelgium

StevenMeun AnteaGroup

TodChristenson AnteaGroup


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Acknowledgements|2December2013


Thanksalsotothe18 individualBIERmemberbeveragecompanies forprovidingthenecessaryfacility

data,withoutwhichthisguidancewouldnotexist:

ABInBev Bacardi Beam,Inc. BrownForman Carlsberg TheCocaColaCompany Danone Diageo Heineken MillerCoors

Molson

Coors

NestleWatersNorthAmerica NewBelgiumBrewingCompany OceanSprayCranberries PepsiCo PernodRicard SABMiller SunOrchard


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Prologue|3December2013


PROLOGUE

As part of a unified effort to reduce the environmental impact of the beverage industry, leading

companieswithin

the

industry

formed

the

Beverage

Industry

Environmental

Roundtable

(BIER)

in

August2006.Themembersofthisroundtablecontinuouslyworktogethertoaccelerateenvironmental

stewardshipacrossthebeverageindustry.

ThisdocumentisthecollectiveworkoftheBIERmembercompaniestoenhanceSectorGuidanceforthe

estimation,trackingandreportingofGHGemissionswithinthebeverageindustry.Ouraimistoachieve

acommonmethodologyforthebeverage industryandallthebeveragecategories(beer,wine,spirits,

CSD,juicesandbottledwater)toaccountforandreporttheirGHGemissionsandensurethatreporting

membersachievecompliancewiththepredominantprotocolsinthefieldwrittenbytheWorldBusiness

Councilfor

Sustainable

Development

(WBCSD)

and

World

Resources

Institute

(WRI):

The

Greenhouse

GasProtocol1,ACorporateValueChain(Scope3)AccountingandReportingStandard2andTheProductLifeCycleAccountingandReportingStandard3.AsaSectorGuidancedocument,noattemptismadetomodifyoramendtheWBCSD/WRIprotocols,but

rathertoincludeclarificationsandexamplesspecifictothebeverageindustry,thusmakingthisavalue

addeddocument.Inaddition,thedocumentstandardizescalculationsteps,providesadirectoryofdata

requirementsandcreatesspecificrulesforboundariesandscopesettings.

BIER member companies believe uniformity in data collection, recording and communication is of

particular importance toour industry.Asconsumerfacingorganizations,uniformity inGHG reporting

willprovideour consumers,aswellasother thirdpartyorganizations,withaconsistent, comparable

and transparent source of important environmental information, while simultaneously safeguarding

sensitiveand/orproprietarydata.

1World Resources Institute and World Business Council for Sustainable Development, The Greenhouse Gas

Protocol,http://www.ghgprotocol.org/.2PankajBhatia,etal., The Greenhouse Gas Protocol Corporate Value Chain (Scope 3)Accounting and Reporting

Standard(October2011).3PankajBhatia,etal., Greenhouse Gas Protocol Product Life CycleAccounting and Reporting Standard (October2011).


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Preface|4December2013


PREFACE

This document is an updated version of the previous sector guidance document 2.0. This updated

versionof

the

Beverage Industry Sector Guidance for Greenhouse Gas Emissions Reporting was

developedbytheBIERmemberstoachievethefollowing:

EnsurealignmentwithTheCorporateValueChain(Scope3)AccountingandReportingStandardandTheProductLifeCycleAccountingandReportingStandard,publishedbyWRI/WBCSD;and

ProvidestandardmethodsandboundariesforcalculatingGHGemissionswithinbeveragecategories(horizontal alignment), and standard methods for common processes and value chain elements

sharedbyallbeveragecategories(verticalalignment).

Achievingthis

horizontal

and

vertical

alignment

will

help

the

industry

with

future

development

of

productcategoryrulesforenvironmentalfootprinting.

The Beverage Industry Sector Guidancefor Greenhouse Gas Emissions Reporting provides beverageindustryspecific informationandexamplesthatsupporttherequirementsoftheaforementionedGHG

reportingprotocols. Indeveloping theSectorGuidance,BIERhasalsoelaboratedon theareaswhere

beveragespecificguidancewasneededmost: recyclingallocation, transportation logistics,maturation

ofdistilledspiritsandcoolingmodels.

Althoughthisdocumentisintendedtoaccommodateenterpriseinventoryandbeverageproductcarbon

footprints(withtheexceptionofdairyproducts),noguarantee ismadeonbehalfofBIERmembersto

complete or publicly report the results of such an assessment. Inmany cases, BIERmembers have

decided to approach enterprise or product GHG emissions in several phases, to identify areas for

improvementorclarification.Thiswillalsoallowcompaniestofocustheireffortsoncertainportionsof

thevaluechainbeforemovingontoamorecompleteassessment.

Futureadditionsmaybemadetothisdocumentasstandardsandproductcategoryrulesareadopted,

specifically

on

aspects

that

center

around

cross

sectored

by

product

allocations.

Future

Product

EnvironmentalFootprintCategoryRules(PEFCR)developmentsforthevariousbeveragecategoriesare

anticipatedto leadthedevelopmentofcrosssectoredallocationmethodsfortreatmentofbyproduct

categories.


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting TableofContents|5December2013


CONTENTS

ACKNOWLEDGEMENTS..................................................................................................................................................1

PROLOGUE.....................................................................................................................................................................

3

PREFACE.........................................................................................................................................................................4

CONTENTS.....................................................................................................................................................................5

INTRODUCTION.............................................................................................................................................................7

1.0ALIGNMENTWITHRECOGNIZEDPROTOCOLS.......................................................................................................10

2.0APPROACHESTOEMISSIONSESTIMATIONANDREPORTING...............................................................................11

EnterpriseInventory...........................................................................................................................................11

SettingOrganizationalBoundaries............................................................................................................13

ReportingtheEnterpriseInventory...........................................................................................................13

AggregationandApportionmentofEmissions..........................................................................................14

ProductCarbon

Footprint

...................................................................................................................................

14

IntroductiontoProductCarbonFootprinting............................................................................................15

BeverageAlcoholProductionConsiderations...........................................................................................15

ReportingtheProductCarbonFootprint...................................................................................................16

MakingSenseofProductandEnterpriseEmissions...........................................................................................17

3.0BEVERAGESECTORVALUECHAINOVERVIEW.......................................................................................................18

BeverageIngredients:cultivationandrawmaterialsprocessing.......................................................................19

BeverageProductionandWarehousing.............................................................................................................20

PackagingMaterialsandUse..............................................................................................................................20

BeverageRetailandConsumption.....................................................................................................................21

ProductionWasteandByproducts....................................................................................................................21

Distribution.........................................................................................................................................................22

Energy.................................................................................................................................................................

23

DeMinimusUsage..............................................................................................................................................23

4.0DATAREPORTING..................................................................................................................................................25

DataTransparency..............................................................................................................................................25

DataVerification.................................................................................................................................................26

5.0BEVERAGECATEGORYALIGNMENT.......................................................................................................................27

5.1BeerAlignment.............................................................................................................................................27

Cultivation..................................................................................................................................................28

RawMaterialProcessing............................................................................................................................31

BeverageProduction.................................................................................................................................32

PackagingMaterials...................................................................................................................................35

Distribution................................................................................................................................................37

BeverageConsumption

..............................................................................................................................

39

5.2CSDAlignment..............................................................................................................................................41

Cultivation..................................................................................................................................................42




Distribution................................................................................................................................................48

BeverageConsumption..............................................................................................................................49

5.3JuiceAlignment.............................................................................................................................................50


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting TableofContents|6December2013


Cultivation..................................................................................................................................................51




Distribution................................................................................................................................................57

BeverageConsumption

..............................................................................................................................

58

5.4SpiritAlignment............................................................................................................................................59

Cultivation..................................................................................................................................................60




Distribution................................................................................................................................................69


5.5BottledWaterAlignment..............................................................................................................................71

Cultivation..................................................................................................................................................72



Packaging

Materials

...................................................................................................................................

76

Distribution................................................................................................................................................78


5.6WineAlignment............................................................................................................................................80

Cultivation..................................................................................................................................................81



Distribution................................................................................................................................................84


6.0GLOSSARY..............................................................................................................................................................87

7.0APPENDICES...........................................................................................................................................................88

AppendixA:SourcesofPrimaryData.................................................................................................................88

AppendixB:

Directory

of

Data

Resources

...........................................................................................................

89

AppendixC:GuidanceforCalculationofCoolingEmissions..............................................................................90

AppendixD:TransportationLogisticsandProductDistribution........................................................................93

AppendixE:AggregationandApportionmentofEmissions.............................................................................104

AppendixF:AllocationofEnvironmentalBenefitsofCollectingandRecyclingMaterials...............................107

AppendixG:BaseYearRecalculationGuidanceTool.......................................................................................108

AppendixH:HowtoReportPurchasedCO2.....................................................................................................113


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Introduction|7December2013


INTRODUCTION

As the issueof climate change advanceson the

listof

global

priorities,

businesses

must

develop

strategies to reduce theirgreenhouse gas (GHG)

emissions. For the beverage industry, as for all

industries,acritical firststep inreductionefforts

is to properly inventory all GHG emissions

associatedwithacompanyanditsvaluechain,as

wellastheGHGemissionsassociatedwiththelifecyclesof itsproducts.Thebeverageindustrycanbe

proactivebyinventoryingandreportingGHGemissionsinawaythatwillhelptomeetgrowingdemands

fromkeyorganizationsandstakeholders,suchas:

Governmentsthatseek toregulateandprovide incentives forbusinesses toreduce theirGHGfootprints;

Influential beverage customers that havebegun to engage their suppliers forGHG emissionsaccounting;

Individualconsumerswhoareincreasinglyawareoftheenvironmentalimpactsoftheproductsthey purchase and of the businesses that provide them. Consumers can choose, and are

choosing, to buy environmentallyfriendly products and to avoid companies that are less

sensitivetoreducingtheirenvironmentalfootprint;and

Tradeorganizationsthatrepresentabroaderbaseofcompaniesactiveinthebeverageindustry.It is the Beverage Industry Environmental Roundtables (BIERs) position that disjointed efforts by

individual companies may lead to complications later on, such as competing or incompatible

methodologies;accountingpracticesnotalignedwithemerging legislation;the inabilityofthe industry

to influenceemerging regulation;and/or confusing andpotentiallymisleadingproduct carbon labels.

Therefore, thework towrite thisguidance representsaunitedapproach tomeasuringand reporting

GHGemissionsandtheindustrysintenttoplayaconstructiveroleinreducingGHGemissions.

It should be noted, however, thatwhile the Beverage Industry Sector Guidancefor Greenhouse GasEmissions Reportingallows foraconsistentapproach to identifying lifecycle impacts, thisguidance isnotdesigned tobeused todirectlycompareproducts. Itspurpose is toclarify theperspectiveof the

industryastowhatisincludedinGHGemissionreportingandhowboundariesareset.


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The purpose of theBeverage Industry SectorGuidanceforGreenhouseGasEmissionsReporting is toprovide beverage industryspecific information and examples that support the requirements of

aforementioned GHG reporting protocols. Companies within the beverage industry seeking to report

GHGemissionseitherattheenterpriseorproductlevelcanusethisSectorGuidanceto:

1) Improve their understanding of the requirements of the Protocol(s) by working through

examplesspecifictobeverageoperations;and

2)Validateresultsofanalysesperformed.

Compared to the previous version of the BIER GHG Sector Guidance, this new versions goal was to

achieve alignment on the different value chain elements, per beverage category. Also, the members

made a first attempt toachieve vertical alignment as well alignmentacross thedifferentbeverage

categoriesper

value

chain

element.

Although complete enterpriselevel reporting includes all operations or divisions of an organization

(whichmayincludemedia,entertainment,orfoods),thissectorguidanceaddressesonlythebeverage

relatedoperations.UsersofthisSectorGuidanceshouldconsulttheWRI/WBCSDprotocolstoclarifyany

issues not addressed by this Sector Guidance, as it is only meant to supplement or clarify existing

protocols.Theaforementionedprotocolsshouldbeseenasthebasisrequirementsforreporting,while

thisdocumentgivesfurtherclarificationandexplanationspecificforthebeverageindustry.

TheBeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReportingisorganizedasfollows: Section 1, Alignment with Recognized Protocols. Reviews the major protocols and evaluates

theirapplicationtothebeverageindustry.

Section2,ApproachestoEmissionsEstimationandReporting. IncludestheEnterpriseInventory

Approach, which defines specifics and calculation methods relating to the calculation of an

enterpriseinventoryofGHGemissions;alsoincludesProductCarbonFootprintApproach,which

defines specifics and calculation methods relating to the calculation of a product carbon

footprint.

Section3,BeverageSectorValueChainOverview.

Section4,DataReporting. Providesdatareportingguidelineswithemphasisonthecalibration

ofreportstoensureindustryconsistency.

Section5,IndividualBeverageCategoryAlignment.

Section6,Glossary.

Section7,Appendices.


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Asafinalnote,thisisalivingdocument.AsGHGdatacollection,estimationandreportingguidelines

continuetoevolve,BIERwillcontinuetoreviewtheinformationcontainedwithinthisSectorGuidance,

and,asnewstandards(including ISOorothers)become final,thebeverage industrywillrespondwith

updates to this Sector Guidance document as needed. Pending items identified as needing further

clarificationincludeallocationofbyproductsandalignmentondatasourcesanddataquality.


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Section1:AlignmentwithRecognizedProtocol|10December2013


1.0ALIGNMENTWITH

RECOGNIZEDPROTOCOLS

Therearethreeprimaryprotocols inthefieldof

GHGemissions reporting:theGHGProtocol (for

enterpriselevel reporting), the Corporate ValueChain (Scope 3) Accounting and ReportingStandard and the Product Life CycleAccountingand Reporting Standard. Since boundary andscopesettingpervaluechainelementarethegoalofthisguidancedocument,nofurtherreferenceto

the PAS 20504(for product carbon foot printing) is needed. The Product Life CycleAccounting andReportingStandardcoversallnecessaryelementsforthispurpose.Besides the global reporting standards andprotocols, thisGHG SectorGuidance also alignswith the

EuropeanENVIFOODprotocol5.Thisprotocolfocusesonenvironmentalreportingoffoodandbeverage

products.FutureeffortstodevelopPCRscanbebasedontheworkperformedforthisdocument.

4BSI, PAS 2050:2011 Specificationfor the assessment of the life cycle greenhouse gas emissions of goods and

services(2011).5EU SCP Food Round Table, ENVIFOOD Protocol: Environmental Assessment of Food and Drink Protocol(November2013).


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Section2:ApproachestoEmissionsEst.&Report.|11December2013


2.0APPROACHES TOEMISSIONS

ESTIMATIONANDREPORTING

There are two unique approaches to GHG

emissions estimation and reporting: enterprise

reportingandproductlevelreporting.TheSector

Guidance document intends to prescribe

standardboundary conditionsanddata sources

specific to the beverage industry, where

flexibilityexistswithinthesetwoapproaches,meaningthisguidancedocumentwillservetheneedsfor

bothtypeofreports.

Bothenterprise inventoryandproductcarbon footprintassessmentsuse thebeveragevaluechainas

thebasisforcalculation,whichwillbedescribedinSection3.Thedifference,however,inenterpriseand

product reporting is in how pieces of the value chain are considered and in what proportions. An

enterprise inventory includesallemissionsfromthereportingcompanyoveragivenperiodoftime,as

wellas theproportionofemissions fromvalue chainpartners thatareassociatedwith the reporting

companys products. A product carbon footprint includes all emissions from across the value chain

requiredtomanufactureagivenproduct,normalizedtoa functionalunit.Eachapproach ispresented

belowinsummary,whilemoredetailscanbefoundintheaforementionedWBCDSprotocols.

EnterpriseInventoryEnterprise reporting, as defined by The GHG Protocol, is arranged in a series of three scopes, oremissions categories. Emissions included in an enterprise emissions calculation are for all products

offered by the beverage company. Full reporting requirements are presented in Section 4, DataReporting.

Thescopesaredefinedasfollows:

SCOPE1BEVERAGEINDUSTRYEMISSIONSBeverage industryScope1emissionsarethedirectGHGemissionsresultingfromcompanyoperations

(including generation of electricity, heat, or steam; physical or chemical processing; and fugitive

emissions).


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PrimarydatashouldbeusedtocalculatetheScope1emissions.Recommendedsourcesofprimarydata

areavailableinAppendixA,SourcesofPrimaryData.SCOPE2BEVERAGEINDUSTRYEMISSIONS

BeverageindustryGHGemissionssourcesincludedunderScope2(indirectemissions)generallyfallinto

oneofthefollowingtwocategories:

Emissions from directly purchased utilities such as electricity, steam, chilled water, refrigeration, or

compressed air used at companyowned or controlled facilities must be reported within Scope 2

emissions.

When purchasing electricity, heat or steam from a CHP plant, it is necessary to allocate emissions

generatedaccording

to

the

proportion

of

each

stream

purchased

or

sold.

Use

the

efficiency

method

as

defined in the WRI/WBCSD Protocol Initiative Calculation Tool to allocate emissions. This method

calculates GHG emissions according to the amount of fuel energy used to produce each final energy

stream.

Emissions from indirectly purchased utilities at controlled facilities, such as the energy used to run

leased buildings and operations within them, must be included. For leased buildings accounted for

under this Sector Guidance, the preferred data sources are as follows: 1) actual metered usage from

leasedspace;2)percentageofactualmeteredusageforentirebuildingbasedonpercentageofbuilding

leased;and3)U.S.EnvironmentalProtectionAgency'sCommercialBuildingEnergyConsumption(CBEC)

tool.OutsideoftheUnitedStates,companieschoosingtousethisEPAtoolshouldsubstitutetheenergy

emissionsfactorforthecountryinwhichtheoperationislocated.Thetoolusessquarefootageandtype

ofleasedspacetoestimateenergyconsumption.

Also,accordingtotheScope3protocol,theindirectemissionsofallfuelsourcesneedtobeaddressed

andaccountedforaswell.

SCOPE3BEVERAGEINDUSTRYEMISSIONS

Scope3emissionsincludeanyemissionsinthecompany'svaluechainnotaccountedforunderScopes1

and 2. The distinction between scopes is unique to each beverage company depending on its

operationalboundaries. Intheappendixofthisguideline, foreachbeveragecategory,theoperational

boundariesasdefinedby theBIERmembersarepresented,aswellasspecificdata requirementsand

applicability.


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ThetopicsidentifiedinthefollowingsectionallfallwithinScope1,2and3forallbeveragecompanies

and represent the complete beverage value chain. As mentioned earlier, Section 5 presents more

detailedvaluechaindescriptionsandprocessmapsforeachbeveragecategory.

Notethat

any

items

in

the

following

subsections

that

are

under

the

operational

control

of

the

company

will count towards Scope 1 emissions; purchased energy associated with theseactivities would count

towardsScope2emissions.Theemissions included intheScope3 inventoryshould includethedirect

emissions(suchasfuelcombustioninatruckownedbyathirdpartydistributor)andindirectemissions

(such as electricity used during production of packaging materials) associated with these value chain

activities.

SettingOrganizationalBoundaries

Use

the

operational

control

approach

as

defined

by

The

GHG

Protocol

to

define

Scope

1

and

2

emissions.IncludeallGHGemissionsfromoperatingfacilitieswhicharewhollyownedandforwhichthe

company has operational control in its Scope 1 and 2 calculations. Emissions from nonbeverage

operations such as entertainment, media, or food businesses are not addressed within this Sector

Guidance.

Clearly state any deviation from the Scope 1 and 2 inclusions/exclusions listed above when reporting

GHGemissions.Forexample,somebeveragecompaniesconsistentlyreportanyfranchisedor licensed

operationsaspartofthereportingcompanyforenvironmentalreportingpurposes.The latestscope3

protocolasks

for

reporting

these

emissions

as

scope

3emissions

in

case

they

are

included

in

the

scope

1

and2reporting.Abeveragecompanythatelectsto includeGHGemissionsassociatedwithfranchised

andlicensedoperations(whicharenotcontrolledoperations)underScope1andScope2isrequiredto

clearlystatethedeviationfromtheapproachdefinedabove.

ReportingtheEnterpriseInventory

Whenreportinganenterpriseinventory,thereportingcompanymustreportthecompleteinventoryof

Scope1,2and3emissionsaccordingtotheboundaries,scopeanddatarequirementsdescribedinthis

SectorGuidance.Whilethefinerboundarypointsbetweenscopesarediscussedwithinthisdocument,

considerthatforacertainbeveragecompanyallproduction,packaging,andwarehousingoperationsare

under the companys control. All upstream beverage ingredients and packaging are purchased from

thirdpartysuppliers;similarlythecompanyusesanexternaldistributortopickupbeveragesfromthe

warehouseanddelivertheirbeveragestothepointofsale.


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Only the fraction of GHG emissions from upstream and downstream value chain partners that are

associatedwiththematerials,products,orservicesprovidedtothebeveragecompanyare included in

enterpriseScope3emissions.

AggregationandApportionmentofEmissions

Anenterpriseinventoryistypicallycreatedthroughtheaggregationofemissionsfromvariousfacilities,

activities, and value chain components. For example, a given manufacturing facility can calculate its

Scope1and2emissionsusingthesameprinciplesdescribedabove,and themanufacturingemissions

inventory for an enterprise can be determined by aggregating emissions from all manufacturing

locations.

Further description of aggregation methods can be found in Appendix E, Aggregation andApportionmentofEmissions.ProductCarbonFootprint

Productlevelemissionreporting,aspresentedinProductLifeCycleAccountingandReporting,requiresa different evaluation of value chain emissions. For this approach (Product Carbon Footprint), it is

irrelevant whether GHG emissions are associated with company controlled operations or by another

entity,directorindirect.Instead,thecarbonlifecycleisdefinedforanindividualproductcategory,and

GHGemissionsfromacrossthatlifecycleareaggregated.Onlythefractionofemissionsfromeachvalue

chaincomponent

that

contributes

to

the

specific

product

footprint

is

included

in

the

product

emissions

total.

AlthoughthisdocumentwillcommonlyusetheterminologyProductCarbonFootprint,thesameGHGs

thatcontributetoanenterpriseinventoryalsocontributetotheproductcarbonfootprint.GHGsother

than CO2 are expressed in terms of CO2eq using their global warming potential (GWP), such that the

footprintofaproductcanbeexpressedasasinglenumber.

For example, consider a beverage company with a single manufacturing location that makes two

products:grape

soda

and

lemon

lime

soda.

Emissions

from

the

manufacturing

location

are

allocated

to

the two products (as described later in this document). Each product individually, however, is not

assigned the total emissions from that manufacturing location. Similarly, emissions from across the

value chain are attributed to one of the two products. For example, all emissions associated with

growing lemons and limes would be attributed to the lemonlime soda; emissions associated with

growinggrapeswouldbeattributedtothegrapesoda.


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Productemissionsarepresentedonafunctionalunitbasis(i.e.,perliterorperserving).Also,thereare

other ways to define a product for example, the beverage company could separately calculate

specificproductfootprintsforpackaginggrapesodaina20oz.PETbottleor33claluminumcan,using

thesameprinciples.

It is important torecognizethataproductcarbon footprint isdifferent froma fullenvironmentalLife

Cycle Assessment (LCA). An LCA is a tool for quantifying the emissions, resources consumed and

environmental and health impacts associated with all stages of the life cycle of a product; a product

carbonfootprintfocusessolelyonGHGemissionswithinthesameproductlifecycle.

IntroductiontoProductCarbonFootprinting

AproductcarbonfootprintisanevaluationofGHGemissionsacrossthelifecycleofaproduct.Unlikean

enterprise

based

assessment,

boundaries

are

not

drawn

within

the

value

chain

to

assign

emissions

to

scopes. Instead,allemissionswithinthevaluechainboundaryofaspecificproductareaccounted for

andparceledtoafunctionalunit,whichcouldbeaspecificcontainer,servingsize,orcaseofproduct.

Theareasofthevaluechainarethesameasthosedescribedaboveforenterprisereporting,andinclude

the GHG emissions associated with cultivation, raw material inputs, transportation streams,

manufacturing, and disposal/recycling of beverage materials. Aggregated GHG emissions from all

activitiesrelated toaproduct, fromtheextractionofbasicrawmaterials,throughmanufacturingand

distributionandincludingconsumeruseandendoflife(recycling/disposal),areincludedintheproduct

carbonfootprint.

BeverageAlcoholProductionConsiderations

Forsomebeveragealcoholproducts,includingspirits,wines,andevenbeers,maturationispartofthe

beverage productionprocess.Certainbeverages,suchasScotchwhisky, requireyears to fullymature

beforetheyarebottledforsale(maturationperiodsofover10yearsarecommon).Duringthistime,the

unfinishedbeverageisstored,usually inbarrelsandvirtuallyuntouched,untilthematurationperiodis

completeandthematerialisbottled.

Thematurationprocesshassignificantimplicationsforproductcarbonfootprints,ascertainstepsinthe

productlifecyclearecompletedmanyyearsbeforeconsumeruseandendoflife.

AccountforGHGemissionsassociatedwithallprocessesuptothepointofbottlingastheyoccurinthe

year in which the products carbon footprint reporting occurs. For example, if a 10 yearold Scotch

whiskyisbottledin2008,emissionsrelatingtogrowingofcerealsduring2008andemissionsrelatingto


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distilling in 2008 would be used in addition to those from bottling and distribution. This approach

affordsseveralbenefits:

Primarydatacollected fromcompanyassetsandvaluechainpartnersduringagivenyear is

usedtocalculatetheproductcarbonfootprint;

Beverage companies can make decisions in their upstream value chain that will have an

immediate impact, rather than waiting years for these improvements to be reflected in a

productfootprint;and

The approach supports the spirit of GHG reporting, which is to promote transparency and

drive improvements in environmental performance. In this way, the manufacturer becomes

accountablefortheenvironmental impactsoftheirproductinthepresentday,ratherthanfor

thosethatoccurredyearsbeforeandoverwhichtheynowhavenocontrol.

Another issue arising from the maturation process is that ethanol is lost to evaporation (commonly

referredtoastheangelsshare).Thefinalvolumeofproduct isoftenmuch lessthanthevolumeat

thebeginningofthematurationperiod. In lieuofprimarydatafor losspercentages,applyanaverage

annual losstoevaporationfortheproductandapplythislossfactortothetotalGHGemissionsofthe

productuptoandincludingdistillation.

Beverage alcohol products may be blends from multiple producers (e.g., blended Scotch whisky),

multipleproducttypes(e.g.,aliquorthatusesbothagrainneutralspiritandawine),orproductsthat

havematured

for

different

periods

of

time

(e.g.,

Kentucky

bourbon).

For

further

detail

on

each

of

these

practices,pleaseseeSection5.4:SpiritAlignment.

ReportingtheProductCarbonFootprint6

Asstatedpreviously,companiesreportingproductcarbon footprintsmustbetransparent indisclosing

any exclusions from the organizational boundary used in calculating the footprint, as well as any

emissionssourcesdeterminedtobedeminimus.FullreportingrequirementsarepresentedinSection4,DataReporting.

6Note:Futureversionsofthisguidancemaycontainadditionalstandardizedreportingrequirementsforbeverage

industryproductcarbonfootprintemissionsreporting.


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MakingSenseofProductandEnterpriseEmissions

Theendresultofanenterpriseemissionsestimationandproductlevelassessmentarequitedifferent,

butusethesamedatasources,aswillbeshownanddescribedinthisguidancedocument.

All steps in the value chain, whether electricity used to cool a warehouse, fuel used in distribution

trucks, or natural gas used in the manufacturing plant, have their place in each assessment. For that

reason,thisdocumentintendstofacilitatetheuseofeitheremissionsapproach,asbeveragecompanies

willultimatelyrequiresimilardatatocompleteeitherapproach.

The Product Life Cycle Accounting and Reporting Standards describes the differences between theenterprisereportingandtheproductcarbonfootprintreporting.Forthebeveragevaluechain,figure1

describesthedifferencesandshowstheattributableandnonattributablescope3itemsfortheproduct

carbonfootprint.

The

non

attributable

items

only

need

to

be

captured

in

the

enterprise

reporting.

Bev.ValueChain,Scope3 Fig.1


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Section3:BeverageSectorValueChainOverview|18December2013


3.0 BEVERAGE SECTOR VALUE

CHAINOVERVIEW

The company's Scope 1, 2 and 3 emissions

inventory encompasses all upstream and

downstreamactivitiesrelatedtothegeneration,

production, use, and disposal of the beverage

products, as well as their associated packaging

and waste streams. For each value chain

component, theseemissions are included in the inventorybasedon the fraction associatedwith the

beverage company's manufacturing and operations versus those total emissions associated with a

particularsupplier.

All

BIER

members

align

across

the

complete

value

chain

per

beverage

category

(horizontalalignment)aswellpervaluechainelement(verticalalignment).

Figure2describestheoverallbeveragevaluechainmovingfromrawmaterialoringredientprocessing,

tobeverageproductionwhereseparatelyproducedpackagingmaterialsareadded,todistributionofthe

packedproducttofirstusers,andfinallythedisposalofthepackagingwhichcanserveasarawmaterial

stream to the packaging production in case of recycling. Transportation is an item attributable

throughoutthecompletevaluechainandisdescribedasaseparateelement.

Some

further

explanation

and

clarification

of

the

beverage

sector

value

chain

is

given

below.

Cultivation: Includes all relevant emissions (pesticides, fertilizer, harvesting, irrigation, cropmanagement,etc.)ofallrelevantcropscultivatedandusedbytheenterprise.

Rawmaterialprocessing:Includesemissionsassociatedwithproduction/treatmentofthecropsandotherrawmaterials(preservatives,sweeteners,etc.),usedbytheenterprise.

Beverage production and warehousing: Includes any beverage production and warehousingactivities which are under and not under the operational control of the reporting company.

Commonexamplesofactivitiesnotunderthedirectoperationalcontrolofthecompanyarecopack

operationsand

distribution

networks,

unless

they

are

wholly

controlled

by

the

beverage

company.

Activitiesunderdirectcontrolarereportedunderthescope1and2emissions.

Packagingmaterials:Includesemissionsassociatedwiththeproductionofprimary,secondary,andtertiary packaging used by the enterprise as well as the mining and preprocessing of these

materials.


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Retail, marketing and consumption: Includes the pointofsale retailer, display cases, adware,

refrigeration units, vending machines, restaurants, and end use by the consumer based on the

proportionusedbyallenterpriseproducts.

Disposal,

reuse

and

recycling:

Includes

emissions

associated

with

the

disposal

of

packaging

and

other waste streams generated throughout the value chain for all materials/processes relating to

theenterprise'soperations.

Transportation and distribution: Include emissions generated as a result of transportation of all

products,packagingmaterials,beverageingredients,fuels,andwastes.

BeverageSectorValueChain Fig.2

Details of contributing sources and boundary conditions for each value chain element are presented

belowandareverysimilarforeverybeveragecategory.

BeverageIngredients:cultivationandrawmaterialsprocessing

This includes all emissions associated with the growing, processing and transportation of ingredients

usedinthecompany'sproductsintheScope3inventory.Examplesinclude:

Emissions associated with energy use by thirdparty agencies for extraction, transportation, and

treatmentofingredientandprocesswater.

Emissions associated with the manufacture, transport and storage of chemical materials such as

preservativesandotherartificiallysynthesizedflavors.


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Emissions resulting from agricultural processes, including tilling, planting, irrigating, harvesting,

fertilizing,andtransportingagriculturalproductsusedbythebeverageindustry.

BeverageProductionandWarehousingForthebeverage industry,thebeverageproductionprocesswilltypicallybeaccounted forasScope1

and 2 activities. Copacking operations, however, should be accounted for in the Scope 3 inventory

whenthereportingorganizationhasnooperationalcontrolovertheproductionoperation.Forexample,

abrewingcompanymayownanddistributeabeerbrandglobally.Inaspecificlocation,however,they

contractwithathirdpartytobrewandpackagethesameproduct,withoutassumingdirectcontrolover

the operations of that brewery. The emissions associated with the thirdparty owned and controlled

brewerywouldbeaccountedforasScope3emissions.Thesameprinciplesapplytojointventuresover

whichthereportingorganizationdoesnothaveoperationalcontrol.

Forinstanceswhereacopackerproducesbeveragesformorethanonecompany,itisnecessaryforthe

reporting organization to estimate the portion of GHG emissions from the copackers facility which

represents the fractionof theirbeverageversusallbeverages producedat the thirdpartyproduction

facility.

GHGemissionsfromwarehousescontrolledbyathirdpartywhichstoreabeveragecompanysproducts

should also be included in the Scope 3 inventory, in proportion to the fraction of the warehouse

occupiedbythereportingcompanysproducts.

PackagingMaterialsandUse

ThisincludesallGHGemissionsassociatedwiththeproductionofthecompany'spackagingmaterialsin

theScope3inventory.Typesofpackagingincludeprimary(e.g.,thecontainerenclosingtheliquid,such

asabottle),secondary(e.g.,acaseofbottles/cans),andtertiary(e.g.,apalletofcaseswithshrinkwrap

thatispreparedfortransportationandstorage).

Incertainsectorsofthebeverageindustry,otherpackagingcontainersmaybeusedduringtheproduct

life

cycle

for

aging

(e.g.,

barrels).

Where

barrels

or

other

packaging

materials

are

reusable,

their

associatedembeddedcarboncanbeamortizedoverseverallifecycles.

GHG emissions estimates should include the initial extraction of the raw materials from the earth or

forest(incorporatingrecycledstock).The inventoryshould includepackagingmaterialsforallproducts


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made by the company, as well as marketing materials such as game pieces, pointofsale displays, or

promotionalitemsthatareaddedtopackages.

Inthecaseofmaterialswhicharerecycledforreuseinanotherproduct'slifecycle(suchasPET,which

may be used in future PET bottles or for another use), use an allocation method based on the sales

market. Depending on local market conditions, this approach affords the environmental benefits of

recyclingeithertotherecyclersortothebeverageproducer.

Details into recycling allocation methods are provided in Appendix F, Allocation of EnvironmentalBenefitsofCollectionandRecyclingMaterials.

BeverageRetailandConsumption

GHGemissions

are

generated

during

the

retail

sale

phase

of

products,

as

well

as

during

the

beverage

endusebyconsumers.Emissionsassociatedwithcoolingmustbecalculatedforallbeveragesthatare

soldbelowambienttemperatureat thepointofsale,regardlessof themanufacturer's recommended

temperatureofconsumption.

GHG emissions associated with beverage retail and consumption that should be accounted for in the

Scope3inventoryincludethefollowing:

Electricityusedtorunthecoolerorvendor(potentiallyincludedinScope2inventory;seeAppendixC,GuidanceforBeverageRetailandHomeConsumptionfordetails);

GHG emissions from the production and losses of refrigerants used at retail or pointofsale

establishments;

PurchasedCO2usedatretailestablishmentstorundraftproductsorsodafountains;

GHGemissionsfromtheproductionofcupsandotherpackagingmaterialsusedtoconsumedraft

productsdeliveredbythereportingcompany;and

The energy used to heat, cool and light the fraction of retail space where equipment is located

(hotelload).

Forfurther

detail

on

this

topic

and

calculation

methods,

see

AppendixC,GuidanceforBeverageRetail

andHomeConsumption.

ProductionWasteandByproducts

Byproductsandwastearegeneratedateachpointinthebeveragevaluechain.IncludeGHGemissions

associated with the treatment, recycling, and/or disposal of all waste products and waste water


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generatedbythebeveragecompany.GHGemissionsassociatedwithwastedisposalatotherpoints in

thevaluechainshouldalsobeincludedintheScope3inventory.

GHG emissions associated with generation of byproducts should be accounted for up to the point

where the byproduct can be beneficially reused. The beverage production process also generates a

numberofbyproductswhichareoftenbeneficiallyreused,suchasbagasse,pumice,spentgrains,and

spilled product. Account for "waste products" that become coproducts by virtue of them having a

beneficial use (such as composting or feed material) up to the point of product differentiation. For

example,ifspentgrainsfrombeerproductionaresoldforcattlefeed,theemissionsfromtheprocessing

ofthegrainsatthetimetheybecomespentareallocatedforinstancebasedoneconomicvalue7ofthe

two products that is, the spent grain and the beer. Another example includes the manufacture of

orangejuice;theorangesaresqueezedtomakejuiceandthepeelsarethensold forcattle feed.Any

emissions

associated

with

the

peels

are

allocated

based

on

the

economic

value

of

thejuice

and

the

cattle feed. Any emissions associated with transporting or further processing of that coproduct are

allocatedtothecoproductandnottheoriginalproductfromwhichitwasderived.

Evaluatewastewaterstreamscomingfromabeverageproductionfacilityorother locations inthe life

cycleto identifytheenergydemandassociatedwithwastewatertreatment.Forexample,noncontact

cooling water will require significantly less energy to treat than wastewater streams leaving

fermentation process areas. In some cases, wastewater treatment will be performed at a company

controlled facility, and the purchased energy used in wastewater treatment is considered a Scope 2

emission.

When wastewater is sent off site to a thirdparty treatment site, such as publicly owned treatment

works, however, include the energy use associated with transportation and treatment in Scope 3

emissions.

Distribution

TheScope3inventoryshouldincludeallGHGemissionsassociatedwithalltransportationstreamsinthe

company

value

chain

which

are

not

controlled

by

the

reporting

company.

Examples

common

to

beveragecompaniesinclude:

Transportationofrawagriculturalproductstoprocessingfacilities;

Transportation of all raw material inputs to the production facility, such as packaging materials,

processchemicalsandbeverageingredients;

7ThisisatopicforfurtheralignmentamongtheBIERmembers


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Product distribution including direct delivery from retailer toshops. Emissions from empty return

journeysareincluded;

Transportationofwastestotheirfinaldisposallocationorpointofbeneficialreuse;and

Employee

commuting

and

business

travel

(if

relevant).

IncludeGHGemissionsassociatedwithrefrigerationuseintransport.

Commonformsoftransportused inthebeveragevaluechain include locomotives,passengervehicles,

trucks,planes,andcargoshipsandbarges.

Published emissions factors may be used in calculating transportationrelated emissions. Additional

guidanceontransportation logisticsandproductdistribution is includedasAppendixD,TransportationLogisticsandProductDistribution.Energy

TheScope3inventoryonenergyemissionsisapplicabletoallprecombustionemissionsofthedifferent

sources.

Many energy suppliers are offering a green tariff, or energy from renewable sources sold at an

additional cost. Purchased energy which is claimed to be renewable is assumed to be a low GHG

emissions source, if the energy supplier can document (CO2 intensity (gCO

2/kWh, or gCO

2/MJ), in the

formofanaccreditedcertificate.Further,thebeveragecompanymustassurethislowemissionssource

isnotcountedelsewhereintheproductcarbonfootprint.

Additionally, many sites make use of selfgenerated biogas from their waste water treatment plants.

ThisisalsoalowGHGemissionsource.

Finally, as stated in the WBCSD Scope 3 protocol, the fuel and energy related emissions that are not

coveredintheScope1and2activitiesneedtobeaddressedaswell.

DeMinimusUsage

Any GHG emission source, when evaluated in terms of CO2eq, representing less than 1% of the total

GHGemissionsemittedduringaproductlifecycleisconsidereddeminimus.


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Any such source can be removed from that product life cycle after using GHG emission data to

demonstratethatthesourcemeetsthisdefinition.Whenaggregated,however, ifdeminimussourcesexceedthe5%materialitythreshold,theyshallthenbeincludedastheyarenolongerdeminimus.Alldeminimusemissionsexcludedbyamembercompanymustbedeclaredandexplained.


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Section4:DataReporting|25December2013


4.0DATAREPORTING

This section outlines the data reporting

requirementsapplicable

to

any

company

seeking to publicly claim compliance with this

SectorGuidance.

DataTransparencyAs the intention of this Sector Guidance is to

achieveacommonmethodologyforthebeverageindustrytoaccountforandreportGHGemissions,it

is critical that companies are transparent in their reporting. Transparency includes describing any

exceptionstothisguidance,aswellashowthereportingcompany'sorganizationalstructureimpactsits

abilitytocollectemissionsdata.

AlignmentwithSectorGuidance

Any company electing to publicly report GHG emissions in accordance with this Sector Guidance

documentmustclearlystate this in its report.Clearlydocumentandexplaineachdeviation from this

guidance.

Boundaries

Clearly state organizational and operational boundaries. Present any changes in organizational

boundariesor

operational

boundaries

(due

to

acquisitions/divestitures,

for

example)

to

aid

in

aclear

understandingofyeartoyearperformancechanges.

DataSourceLimitations

Clearlylistanydatalimitationsand,ifdataareexcluded,thenstatethereasonsforexcluding.

Purchase/SaleofCarbonOffsets

Reportandfullydisclosethepurchaseorsaleofanycarbonoffsets/renewableenergycertificates(REC)

separately from emissions calculations. This Sector Guidance requires full reporting of emissions

independentlyfromanypurchasedoffsets.Theinventorymustreflectbothsoldandpurchasedoffsets.

Addbacksoldoffsetsintotheinventory.Trackpurchasedoffsetsseparatelyanddonotshowthemasa

reductioninacompany'scorporateinventory.


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Section4:DataReporting|26December2013


DataVerification

This Sector Guidance recommends several methods of data verification be completed to ensure that

reported GHG emissions values are representative of actual conditions. Although not required,

recommendedverification

steps

are

described

below.

RecordkeepingRequirements

Maintainrecordsofemissionscalculationsanddatasourcesusedinamannerthatfacilitatesreviewby

athirdparty.Documentbothprimaryandsecondarydatasources.

InternalVerification

Prior to going to a third party for verification, conduct internal verification of the GHG emissions

estimationprocess.Internalverificationwillnotnecessarilyincreasecredibilityofreporteddata,butisa

useful tool to raise awareness of GHG emissions within an organization and identify shortcomings in

datacollectionactivitiespriortoengagingathirdpartyverifier.

ThirdPartyVerification

Companies reportingemissionsareencouraged,butnot required, toconductanobjective thirdparty

verification audit of reported GHG emissions. Verification by a third party increases the credibility of

publicly reported emissions estimates as well as supports the establishment and acceptance of this

document as the industry standard. Certain agencies and initiatives, including The Climate Registry,

World Economic Forum Global GHG Registry, and the European Union Emissions Trading Scheme

alreadyrequireaformofemissionsverification.

MaterialDiscrepancies

Anyverificationactivity,whetherinternalorexternal,shouldseektoidentifymaterialdiscrepancy,such

as oversight, omission, or miscalculation, which leads to error in the formulation of an emissions

footprint. A threshold of 5% should be used to determine whether a discrepancy be considered

"material" (asperTheClimateRegistry).Materialdiscrepanciescan takethe formofamiscalculation,

inability of management or sites to obtain GHG data, or unreliability of data collection sources (e.g.,

outdatedmeters).Anymaterialdiscrepanciesthatcannotberesolvedpriortopublishinganemissions

reportmustbeclearlystated in thereport.Materialdiscrepanciesdonot include themarginoferror

associatedwith

secondary

data

sources.

ReportingRequirements

Werecognizethatreportingformatsmayvarybasedontheprogramforwhichdataarereported.State

any deviations from the Beverage Industry SectorGuidanceforGreenhouseGas EmissionsReportingwhenreferencingitinreports.Also,clearlystateallinternalandexternalverificationeffortsalongwith

thestatementandsignatureoftheperson(s)responsiblefortheverificationprocess.


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Section5:BeverageCategoryAlignment Beer|27December2013


5.0BEVERAGECATEGORYALIGNMENT

Inthe

following

chapters

the

individual

alignment

per

beverage

category

is

presented

in

concise

process

mapsanddatarequirementsets.

5.1BeerAlignmentThe overall Beer Value Chain is presented infigure3.Thisvalue chain servesas thebasis for

moredetaileddescription of the different value

chainelementsfurtheroninthischapter.

BeerValueChain Fig.3


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Cultivation

Figure4showsthecultivationprocessmapforbeerproduction.Theagricultural

process starts with seeds and ends with harvested product. The emissions

related

to

transportation

of

the

crops

are

included

in

the

distribution

GHG

emissions.

Thecultivationofbarley,hops,maize,wheat,sugars,sorghumandricearetakenintoaccount.Forthese

crops the GHG emissions from fertilizer and pesticide production and application, energy use (e.g.

sowing, harvesting, and irrigation) and land use/land use change are taken into account. Upstream

emissionsoffuelsandelectricityshallbetakenintoaccountaswell.

CultivationProcessMap Fig.4

PROCESSESINCLUDED

Thisscope

is

applicable

to

all

significant

ingredients

(significant

is

>99%

based

on

mass

of

the

overall

emissionsofallingredientsintherecipe),likebarley,hops,maize,sugar,rice,wheat,etc.

ForallingredientsthecontributiontotheoverallbeerGHGemissionsiscalculatedandthoseingredients

withthehighestcontributiontotheoverallCO2emissions(=99%ofall ingredientscovered)aretaken

intoaccount.Thesameapproachisfollowedfortheothercultivationelements,likeirrigation,pesticide

useandfertilizeruse.


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DATAREQUIREMENTS

Forthisvaluechainelement,thefollowingminimumdatarequirementsareapplicable.Insomecasesa

moreaccuratenumbercouldbeobtained,althoughthisisnotrequired,onlyrecommended.

MinimumDataRequirements Moreaccurate

Ingredientname

Countryspecificyieldfactorperingredient Suppliervalues

FixedCultivationvalueorfactor Countryoforigin

FixedFertilizervalueorfactor Countryoforigin

Scope1and2emissionscultivation Activitydata

Volume(metrics,tons,outputratio,etc.)

CALCULATIONEXAMPLE

Thefollowingcalculationexamplesshowhowemissionsforthecultivationstepinthebeervaluechain

canbecalculated.

Step1Activitydata,seedatarequirements

Ingredient=Barley

Countryofproduction=France

Annualamount=23,000tonne

Step2Calculateemissionsfactor

BarleyyieldinFranceis6.4tonneperhaaccordingtoFAOdata(5yearaverage).Basedonthisyieldand

theassumedrelationbetweenbarleyyieldand inputs,columntwostatestheestimated inputuse for

barley in France. In the following table, an example is given for calculating the total kg CO2eq per

hectare.


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InputEstimatedquantity

Parameter(kg

CO2eq/unit)

EmissioninkgCO2eq

(estimatedquantity*

parameter)

Diesel(kg/ha) 69 3.5 242

Electricity(kWh/ha) 81 0.5 41

Nfertilizer(kgN/ha)* 148 6+6.2=12.2 1,800

P2O5 fertilizer (kg

P2O5/ha)20 1.44 29

K2O fertilizer (kg

K2O/ha)20 0.44 9

N in crop residues (kg

N/ha) 41 5.74 211

EmissionbarleycultivationfromFranceperha(total) 2,355

Step3

Tocalculatetheemissionfactorpertonneofbarley:

1) The emissions per hectare are multiplied by 1.05 to account for the emissions of the seed

productionnecessaryforthebarleycultivation;

2) As an industry typical example, 82% of the emissions from barley cultivation are economically

allocatedtothebarley,18%areallocatedtothecoproducts(e.g.straw);

3) Thetotalbarleyemissionperhectarearedividedbytheyield(6.4tonne/ha).

Emission

perton

Barley

=

Total

emissions

/ha

(1+Seed

fraction

{0.05])

x allocation / yield

(kg

CO2eq/ton)

kgCO2eq(1.05) (%) (Ton/ha)

EF=Total*(1+seedfraction[0.05])*allocation/yield=319kgCO2eqperton.


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RawMaterialProcessing

Infigure5theprocessesandinputsofamaltingsitearesummarized.Themalting

process starts with unmalted grains and ends with malted grains. The

transportation

processes

of

(un)malted

grains

are

included

in

the

total

GHG

emissions and the calculation methodology is explained in the distribution

reportingsection.

RawMaterialProcessingMap Fig.5

PROCESSESINCLUDED

Thisscope isapplicabletoallancillaryGHGemissionsfromcleaning,officeorhotel load,waterpre

treatment plant (WTP) and the waste water treatment plant (WWTP) inclusive of such items as the

malting plant or CO2 plant. Upstream emissions of fuels and electricity also have to be taken into

account.Upstreamemissionsareindirectemissionsoffuelsandelectricityandconsistofemissionsdue

tomining,transportation,lossesandpurification.GHGemissionsfromexternalwaterplantsandwater

treatmentplantsarenotinscope.

DATAREQUIREMENTS




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Locationofmaltingplant

Amountandtypeoffuelsusedplusemissionfactor

Amountofelectricityfromnationalgrid

Amountof

electricity

from

other

source

(plus

grid

factor)

Output/inputratiofixed Output/inputratiocalculate

%drymatterofmalt

BeverageProduction

Infigure6theprocessesandinputsofbrewingandpackingaresummarized.

BeverageProduction

Process

Map

Fig.

6


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The brewing and packing process starts with raw materials intake (e.g., malted grains, unmalted

materials,sugars,hops,syrups).Theinboundtransportationprocessesofthesematerialsareincludedin

thetotalGHGemissionsandareexplained inthedistributionsectionofthisguideline.GHGemissions

are in scope from all processes: mashing, wort boiling, fermentation, lagering, filtration and packing

beer. The emissions associated with utility processes and offices on site are also included. Upstream

emissionsof fuelsandelectricityalsohave tobe taken intoaccount.Upstreamemissionsare indirect

emissions of fuels and electricity and consist of emissions due to mining, transportation, losses and

purification.

TheGHGemissionsfromthepackagingmaterialproductionareincludedinthepackagingmaterialvalue

chainelementsectionofthisguideline.

PROCESSESINCLUDED

Thissectionisapplicabletoallcompanyownedproductionunits,copackers,cobrewers,franchisesand

leasedunits(asdefinedinGHGinventoryscope).

AllGHGemissionswhichoccurinthemainprocessBrewingandPackingareallocatedtothebeverageproduced(beer,ciderorsoftdrinks).Whenrecycled,thecoproducts(e.g.,brewersspentgrains,surplus

yeast) leave the brewery with zero GHG emissions. The recycling bonus is for the user (normally a

farmer) that actually recycles the coproducts. If these coproducts are dumped to landfill, however,

thereare(estimated)GHGemissionsandtheseareaccountedforinthebreweryemissions.

Thereasons

for

this

pragmatic

approach

are:

Themainproductofabreweryispackedbeer;

Thefinancialbenefitsofrecyclingspentgrainsandsurplusyeastareinsignificantwhencomparedto

financialvalueofthepackedbeer.So,economicalallocationisnotrequired;inadditionitwouldnot

beverypracticaltouseacountryspecificeconomicalallocation;and

Themassofthe(wet)coproductsissignificant,upto1020%ofthebeerweight.AllocationofGHG

emissionstocoproductsisnotdesirablesincetheenvironmentalproblemsofourcoproductsare

minor compared to the environmental impact of the main product. Taking landfill emissions on

boardquantifies

the

impact

of

these

bad

practices.

Forthechoiceoftheallocationofproductionmaterials, likefilterscleaninganddisinfectantmaterials,

etc.,thedeminimusrulesapply.


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DATAREQUIREMENTS

Minimumdatarequirements

Beverageproduction,totalvolumeproduced/sold(hl/y)

Onsite

use

of

Thermal

energy

(MJ)

Onsitefueltypesused(types,LHV)

OnsiteCO2emissionsforcompanyownedtransport(scope1)

OnsiteCO2eqemissions,fromlostrefrigerants

Onsiteelectricityconsumption(kWh)

Waterconsumption(m3)

Watersource

Kieselguhr,hopsandothermaterialsconsumed(purchasedkg)

WastewaterCOD

Owntreatmentorthirdparty

NonrecycledBrewersSpentGrains


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PackagingMaterials

Figure7belowsummarizestheinputsandoutputs

forthepackagingdisposalandpackagingmaterial

productionprocess.

PackingMaterialsProcessMap Fig.7

PROCESSESINCLUDED

All primary packaging materials: PET, aluminum, KEGS, glass, canends, plastic/paper labels, label

glue,shrinkfoil,cratesandpallet.

Secondaryandtertiarypackagingmaterialsafterthedeminimusruleisapplied.


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Distribution

Figure 8 below summarizes the key inputs and outputs for the transportation and

distributionprocess.

DistributionProcessMap Fig.8

PROCESSESINCLUDED

This element concludes all transport of product, ingredients and packaging materials within the

completevaluechain, indicated intheoverallvaluechainprocessmapwithaT.Capitalgoods(trucks,

barges,etc.)areexcludedaswellastransportfromretailerstoretofinalconsumer.

DATAREQUIREMENTS

MinimumData

Requirements

Scope 1 and 2 emissions company owned and noncompany ownedwarehouses, distribution centers

etc.,plustheirprecombustionemissions.

CO2emissionsofalltransportinthevaluechain.


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CALCULATIONEXAMPLE

Thecalculationbelowshowshowthecarbonemissionfromtransportationofmaltedbarleyisbuiltup.

For our fictional example, two transportation steps apply. The first is of the cultivated barley in the

United

States

and

its

transportation

to

the

processing

facility

also

located

in

the

United

States.

The

secondstepistransportationofmaltedbarleyfromtheUnitedStatestoFrance.

Step1:Activitydata

For our fictional example, the following activity data is taken from the background transportation

matrices.

Transportationofbarleytothemaltery:500kmbytruck.Theamountis1.25tonnetransportedbarley

for1tonneofmalt,whichisthedefaultconversionfactorformalteries.

Transportationofmaltedbarleytotheproductionunit:6000kmbyoceanand500kmbytruckwithin

France.

Step2:Emissionfactors

Therelevantemissionfactorsare:

Emissionfactortruckcropproducts 0.0807 kgCO2eq/ton*km

Emissionfactortruckmaltedbarley 0.0807 kgCO2eq/ton*km

Emissionfactorocean 0.0225 kgCO2eq/ton*km

Step3:CalculatingGHGemissions

Thetotalcarbonemissionfrommaltedbarleycanthenbecalculatedas:

Barleyfromfieldtomaltingsite,transportbytruck: 0.087*1.25*500=54.4kgCO2eq.

Maltedbarleytransportfrommaltingplantinshiptooverseasharbor,transportbyocean:0.0225*

1.00*6000=135kgCO2eq.

Malted barley transport by truck from harbour to brewery: 0.087 * 1.00 * 500 = 43.5 kg CO2eq.

Thetotalcarbonfootprintfromtransportationthenbecomes232.9kgCO2eq/tonnemaltedbarley.


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Transporttype emissionfactor km amount emissions

(kgCO2eq/ton*km)* (km)* (Tons)= (kgCO2eq)

trucktransportcropproducts 0.0807 500 1.25 50.4

trucktransportmaltedbarley 0.0807 500 1 40.4

seatransport

malted

barley

0.0225 6000 1

135.0

Totalemissions 225.8

Emissions=(kgCO2eq/ton*km)*(km)*(Tons)=(kgCO2eq)

=emissionfactor*km*weight

BeverageConsumption

Figure9presents

the

key

inputs

and

outputs

for

the

beverage

consumption

process.

BeverageConsumptionProcessMap Fig.9


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PROCESSESINCLUDED

This scope and description is applicable to the cooling of the produced beer at retailers, restaurants,

barsandhomeusers.Inthisscopethehotelloadoftheretailstoresshouldalsobeincluded.

DATAREQUIREMENTS

MinimumDataRequirements

Hlpercoolingcategory

Countryspecificemissions

Specificenergyusevariouscoolingmethods


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BeverageIndustrySectorGuidanceforGreenhouseGasEmissionsReporting Section5:BeverageCategoryAlignment CSD|41December2013


5.2CSDAlignment

The overallCSDValueChain is presented in thefigurebelow.Thisvaluechainservesasthebasis

for more detailed description of the different

valuechainelementsfurtheroninthischapter.

CSDValueChain Fig.10


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Cultivation

Thefigurebelowshowsthecultivationprocessmapforsoftdrinkingredients.The

agricultural process starts with seeds and ends with harvested product. The

emissionsrelated

to

transportation

of

the

crops

are

included

in

the

distribution

GHGemissions.Thecalculationmethodologyfortransportationisdescribedinthe

distributionreportingguideline.

CultivationProcessMap Fig.11

The cultivationof fruits, flavors and sugarbeet,etc. is taken into account. For these crops theGHG

emissionsfromfertilizerandpesticideproductionandapplication,landuseandchangeinlanduse,and

theenergyuse (e.g.,sowingandharvesting)are taken intoaccount.Upstreamemissionsof fuelsand

electricity shall be taken into account as well. How to deal with CO2 as ingredient is described in

AppendixH.PROCESSESINCLUDEDThisscopeisapplicabletoallsignificantingredients(significantis>99%ofmassoftheoverallemissions

ofallingredients),likesugar,fruits,etc.determinedafterdeminimusruleisapplied.


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DATAREQUIREMENTS




Ingredientname

Countryspecificyieldfactor

FixedCultivationvalue/factor Countryoforigin

Fixedfertilizervalue/factor Countryoforigin

Scope1and2emissionscultivation

Volume(metrics,tons,outputratio,etc.)

RawMaterial

Processing

The figure below shows the raw material inputs and outputs for soft drink

ingredients.

RawMaterialProcessingMap Fig.12


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PROCESSESINCLUDED

Thisscopeisapplicabletoallsignificantrawmaterialslikeconcentrates,(liquid)sugar,CO2andflavors.

DATAREQUIREMENTS




Locationofprocessingplant

Amountoftypeoffuelsusedplusemissionfactor

Amountofelectricityfromnationalgrid

Amountofelectricityfromothersource(plusgridfactor)

Output/inputratiofixed Output/inputratiocalculated

BeverageProduction

Figure13summarizeskey inputsandoutputs forthebeverageproductionprocessof

softdrinks.

BeverageProductionProcessMap Fig.13


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PROCESSESINCLUDED

Thisscopeisapplicabletoallcompanyownedproductionunits,copackers,franchisesandleasedunits

(asdefinedinGHGinventoryscope).

Additionally,processesrelatedtowarehousingandinternalandexternalWWTPareincluded.

DATAREQUIREMENTS


Beverageproduction,totalvolumeproduced/sold(l/y)

Onsiteuseofthermalenergy(MJ)

Onsitefueltypesused(types,LHV)

OnsiteCO2emissionsforcompanyownedtransport(scope1)

OnsiteCO2eqemissionsfromlostrefrigerants

Onsite

electricity

consumption

(kWh)

CO2,waterandothermaterialsconsumed(purchasedkgorm3)

WastewaterCOD

Owntreatmentorthirdparty

Commutingandbusinesstripsdata


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PackagingMaterials

Figure 14 below summarizes the inputs and

outputs for the packaging disposal and packaging

materialproductionprocess.

PackingMaterialsProcessMap Fig.14

PROCESSESINCLUDED

Thisscopeisapplicableto:

Allprimarypackagingmaterials:PET,aluminum,glass,LLPDPE,PE,PP,laminatedfilm.

Allpackagingtypes:bottle,BaginBox,can,box,pad,can.

Secondaryandtertiarypackagingmaterials,likecratesandpalletsafterdeminimusruleisapplied.


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DATAREQUIREMENTS


Activitydata

by

packaging

supplier

and

activity

data

by

beverage

producer

for

3categories:

Packagingmix

Beveragetype

Productionunitlocation

Packagingtype(andweight)

Packedvolume

Recyclingpercentagesofpackagingorrecycledcontentofpackaging

Onewaypackaging

Beveragetype

Productionunitlocation

Volumepacked

Packagingunitvolume

Purchasedpackagingunits

Weightandpackagingmaterial(+recyclingcontent)ofcontainerandcanends/lids

Countryandlocationofpackagingsupplier

Secondaryandtertiarypackagingmaterials

Beveragetype

Materialtype

Totalweightofpackaging

Forrecyclingratesandrecyclingcontentpercentages,aswellascountryspecificrecyclingrates(where

available)forwhereproductissoldareused.


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Distribution

Figure 15 below summarizes the key inputs and outputs for transportation and

distributionofcarbonatedsoftdrinks.

DistributionProcessMap Fig.15

PROCESSESINCLUDED

Applicable to all transport of product, ingredients and packaging materials within the value chain,

indicatedintheoverallvaluechainprocessmapwithaTandafterdeminimusruleisapplied.

DATAREQUIREMENTS


Scope 1 and 2 emission non companyowned warehouses, distribution centers etc., plus their pre

combustionemissions.

CO2emissionsofalltransportinthevaluechain.


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BeverageConsumption

Key inputsandoutputsfortheretailandbeverageconsumptionprocessregardi

brewing industry emission reporting protocol

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