Energy & Carbon
We are committed to reducing our energy use and carbon emissions to minimize our contribution to climate change and improve Our Beer Print. In 2012 Molson Coors set ambitious objectives to reduce energy and carbon intensity by 2020 from a 2011 baseline:
- Reduce Carbon intensity by 15%1
- Reduce Energy intensity by 25%2
We have set out a plan to achieve the necessary reductions as part of an Enterprise Sustainability Strategy. The principle elements relating to carbon emissions and energy reductions are:
- Commitment to invest in alternative energy with a focus on converting brewery waste water to biogas energy. The recovery of biogas for generating heat or electricity to use in our processes is a more efficient use of natural resources and is Carbon neutral; thereby helping us to achieve our Carbon intensity target.
- The implementation of the Our Beer Print Pillar. The pillar is part of our World Class Supply Chain continuous improvement program, and which acts as a robust energy, water, carbon and waste management system aligned with the internationally recognized standard ISO50001 and sets out processes, tools and resources for activities such as:
- Energy and carbon savings planning;
- Employee engagement;
- Sustainability auditing;
- Adoption of best-available technology;
- Climate and energy risk management;
- Measurement and tracking of energy use.
- The Implementation of The Dollar$ense Project. The project is composed of energy management software and business processes to support greater accountability and visibility of energy use within our sites. This tool provides our front-line employees with the tools they require to act with greater agility and autonomy in solving problems and implementing opportunities for energy and carbon savings. In 2014 we completed a successful pilot in our Montreal brewery and we are now rolling it out across our brewery network. The system is currently live in 4 of our site and will be implemented in all sites by 2016.
Our commitment to improve Our Beer Print extends beyond the borders of our breweries. We engage with our supply chain to find ways to reduce energy use and carbon emissions initially by improving the data we capture and report on carbon emissions. In 2014 we continued to make progress in this regard, primarily through cooperation with other beverage companies within the Beverage Industry Environmental Roundtable (BIER) to generate a standard methodology to calculate the environmental footprint for beer.
We engage directly with suppliers on improving Our Beer Print. A number of sustainability criteria are now integrated into our supplier score card process. Along with other key indicators (such as quality) we are tracking the energy, carbon and water savings our suppliers are delivering on the goods and services we purchase. We have prioritized packaging and raw materials (such as malt and barley) for the sustainability scorecard roll out process based on the importance of these categories to both environmental footprint and spend.
1 Carbon targets include all production sites and company-owned distribution. The energy target also excludes offices which represent less than 1% of total energy consumption. As a result of the exclusions, the coverage of the targets (emissions included in the target calculation as % of total Scope 1 and 2 emissions) is 92%.
2 The energy intensity objective is an industry standard applied to breweries with the denominator expressed in hectolitres. It does not include non-production sites such as distribution, offices or the maltings facility in the UK due to the production being in dry tonnes as opposed to hectoliters. The resulting coverage of the target is 86%.
We measure our performance in energy and carbon on the intensity of energy used and carbon emission per unit of beer produced.
Normalized per hectolitre performance:
- In 2015 we set ourselves an annual target of 115.8 MJ total energy use per hectolitre of beer produced (MJ/hl).
- We did better than target, achieving 113.1 MJ/hl, a 3% reduction from 2014 levels.
- Our focus for energy in 2015 was on investment in waste-to-energy to reduce our carbon intensity and we achieved a 4.4% increase last year in renewable heat generated.
- As a result of greater energy efficiency and the investment in renewable heat, we reduced the carbon intensity of all operations by -7.2% from 9.2 to 8.6 kgCO2e/hl.
- Total energy use fell by 7% from 2014 levels.
- Reduced our scope 1 and 2 carbon emissions by 23,486 tonnes of CO2e, or 8.4%
Progress towards 2020 targets:
- Achieved 43% of our 2020 energy reduction target, with 5 years remaining and are positioned to deliver on our commitment.
- Achieved 42% of our 2020 carbon reduction target with 5 years remaining, putting us on a path to over-deliver on our commitment.
- Invested in greater capacity to deliver further energy savings by means of better metering and monitoring of water use though our Dollar$ense utility management information system, which is now live in our Molson Coors Canada and Molson Coors Europe breweries.
|Molson Coors Trends in Total Energy Use and Carbon Emissions*|
|Energy Use (MJ)||4,005,589,704||3,901,323,806||3,763,200,309||3,498,103,792|
|Electricity Purchased (MJ)||1,127,723,538||1,123,264,262||1,083,394,406||1,022,460,377|
|Renewable Heat Generated (MJ)||39,556,831||34,089,310||40,844,869||42,656,058|
|Renewable Electricity Generated (MJ)||-||-||-||-|
|Scope 1 (tonnes CO2e)||179,359||171,192||169,896||159,988|
|Scope 2 (tonnes CO2e)||117,819||113,060||108,346||94,768|
|Energy Use and GHG Emissions Trends and Breakdown by Region 2015|
|Energy Use (MJ)||3,498,103,792||2,122,769,444||1,331,844,991||43,489,357|
|Electricity Purchased (MJ)||1,022,460,377||616,414,309||390,857,621||15,188,447|
|Renewable Heat Generated (MJ)||42,656,058||14,692,735||-||27,963,324|
|Renewable Electricity Generated (MJ)||-||-||-||-|
|Scope 1 (tonnes CO2e)||159,988||86,320||73,138||529|
|Scope 2 (tonnes CO2e)||94,768||85,877||5,554||3,337|
|Significant Investments – MillerCoors|
|Energy Use (MJ)||5,853,935,895||5,357,748,751||5,165,071,931||4,507,719,996|
|Electricity Purchased (MJ)||1,396,902,191||1,402,377,147||1,385,845,175||1,314,124,576|
|Scope 1 (tonnes CO2e)||220,139||198,232||175,857||131,569|
|Scope 2 (tonnes CO2e)||409,632||314,495||320,073||303,413|
The data in Energy Use and Carbon Emission by Region has been independently reviewed in accordance with ISAE 3000 and disclosed to investors in our 2015 10K as part of the evaluation of climate change risk. The data tables report energy use and carbon emissions by region for Molson Coors Brewing Company. Data corresponding to our 42% equity share in MillerCoors in the US is no longer consolidated in MCBC data and is reported separately as Scope 3 activity related to 'Significant Investments'. This is due to a change in the criteria for determining scope from the 'Equity Share' method to the 'Operational Control' method which was deemed more suitable for providing information to stakeholders that is more comparable with our peers. Historical data has been re-baselined to reflect this change and all information going forward will include 42% of MillerCoors activity as Scope 3 related. See Reporting Scope for full details regarding MillerCoors and Economic Impact for details of Molson Coors’ and MillerCoors’ financial performance.