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Reducing CO2 Emissions

Our operating context

In October 2016, 113 countries ratified the Paris Agreement to limit greenhouse gas emissions to below 2 degrees Celsius, making it a legally-binding climate deal. New Zealand’s post 2020 target is to reduce greenhouse gas emissions to 30% below 2005 levels by 2030 and the government is reviewing the New Zealand Emissions Trading Scheme (NZ ETS) to assess how it should evolve to support New Zealand in meeting future emissions reduction targets. Now in its second stage, the review will provide advice by the middle of 2017 on how the NZ ETS is working and possible improvements and changes required to deliver on the Paris target.

Under the Paris Agreement, New Zealand is also required to plan for and take action on adapting to the impacts of climate change. In July 2016, the government established a Climate Change Adaptation Technical Working Group which will provide an interim report in 2017 and final recommendations in March 2018.

Why greenhouse gas emissions are important to DB Breweries

DB Breweries acknowledges that we have a responsibility to reduce our greenhouse gas emissions and contribute to global and national targets. We also need to prepare for the impacts of climate change on our communities and on our business by managing risks such as water consumption and drought. We also support HEINEKEN’s membership of the Beverage Industry Environmental Roundtable (BIER) and the BIER 2015 Joint Commitment on Climate Change, which commits us to:

Excerpt from UN Sustainable Development Goals

Our priorities

Our priority is to contribute to HEINEKEN's global target of reducing greenhouse gas emissions in production by 40% by 2020. To do this we focus on saving energy, increasing efficiency and increasing our use of renewable energy. These initiatives also help us to contribute to the UN Sustainable Development Goals and how they can be progressed in New Zealand.

Lowering emissions in production is our focus and we pursue this through energy optimisation and increasing our energy efficiency as a first order priority in our breweries and cidery. We approach this through our Total Productive Management (TPM) teams who regularly examine all of our resource consumption at our production sites as well as including efficiency provisions in our rolling capital expenditure plans when plant and equipment is upgraded. There were no major infrastructure investments in 2016 and our progress is the result of a continuous improvement approach which includes weekend checks, energy audits and the use of thermal cameras to detect losses.

Our results

HEINEKEN Global commitment by 2020 DB Breweries - objective by 2016 What DB Breweries has done in 2016
Reduce CO2 emissions in production by 40% (equivalent to CO2-eq/hl) Reduce CO2 emissions6 in production by 44% (equivalent to CO2-eq/hl) Achieved CO2 emissions reduced by 46% since 2008 baseline

Specific greenhouse gas emissions

We have reduced our CO2 emissions per hectolitre by 46% from the 2008 baseline, reaching our goal for 2016 and exceeding HEINEKEN’s global commitment for 2020. The specific direct and indirect CO2 emissions of DB Breweries decreased from 5.3 kg CO2-eq/hl to 5.0 kgCO2-eq/hl in 2016. This is a decrease of 5% compared to last year. DB Breweries also has lower specific direct and indirect CO2 emissions than the HEINEKEN Group average of 6.5 kg CO2-eq/hl.

Specific greenhouse gas emissions data

Hl/hl beer + soft drink + cider + water

Total specific energy consumption

The specific total energy consumption of DB Breweries decreased from 97.9 MJ/hl to 92.7 MJ/hl in 2016. This is a decrease of 5% compared to last year. DB Breweries has a higher specific total energy consumption than the HEINEKEN Group average of 91.4 MJ/hl.

Specific energy consumption data

Mj/hl beer + soft drink + cider + water

Specific thermal energy consumption

The specific thermal energy consumption (ex logistics & biogas) of DB Breweries decreased from 60.6 MJ/hl to 56.9 MJ/hl in2016. This is a decrease of 6% compared to last year. DB Breweries has a lower thermal energy consumption than the HEINEKEN Group average of 63.2 MJ/hl.

Specific thermal energy consumption data

MJ/hl beer + soft drink + cider + water

Specific electricity consumption

The specific electricity consumption of DB Breweries decreased from 10.4 kWh/hl to 9.9 kWh/hl. This is a decrease of 4% compared to last year. DB Breweries has a higher specific electricity consumption than the HEINEKEN Group average of 7.8 kWh/hl. Renewable energy in our specific electricity consumption for beverage production this year was 75%, based on the overall country energy mix.

Specific electricity consumption data

KWh/hl beer + soft drink + cider + water

Our actions 2016

Continuous improvement in energy

We adopt a continuous improvement approach to managing resources such as energy, water and waste generation. We don’t look at energy efficiency as a project that has an end which we can declare ourselves finished. Nor do we pin all of our expectations for energy savings on a single upgrade or piece of equipment.

We developed an Energy Saving Programme in 2015 which set the scope and objectives for energy management and allowed us to measure and monitor results and then review the effectiveness of our approach. This has helped us to embed the thinking of resource efficiency among our operations staff and find small but multiple savings which continue to add up and help us to progress toward our targets. Initiatives such as the installation of LED lights and motion sensors continue to provide savings, while air leak surveys and weekend energy audits contribute to the identification of opportunities for further work.

Toward carbon neutral brewing

In March 2015, we commissioned a solar unit at our Redwood Cidery. A standalone unit, it was dedicated to heating water in the sterilisation (CIP) supply tank which was, until then, done through electricity only. Throughout the year we used a combination of electric and solar capacity at the site and in 2016 we made further changes to save more electricity, including halving the volume of water heated from 30 to 15 Hls, sterilising post shift instead of pre shift and filling the tank with thermal heated water. The unit has consistently reduced our electricity consumption from 2.54 kilowatt hours per hectolitre packed product in 2014 to 1.37 in 2016.

Sterilisation Hot Water Tank electrical consumption FTY2

Year Elec. Consumption (KWHRs) HL Packed KWHRs per HL Packed
2014 57,028 22,403 2.54
2015 51,195 28,397 1.8
2016* 39,670 28,880 1.37

Reducing waste

DB Breweries is always looking for opportunities to get the most value from the resources we use. As the world’s developing countries rapidly industrialise, global food prices are expected to rise as businesses compete for resources constrained by climate change and water scarcity. Doing more with less, prioritising human nutrition and retaining as much value as possible are priorities for DB Breweries.

This year HEINEKEN commenced a roll out of a ‘zero waste’ programme to support zero waste to landfill by 2020 across its operations. The main residual products from the brewing process are brewer’s spent grains, surplus yeast and materials like glass, cardboard, aluminium, plastic and paper.

By making the most of these raw materials, we can also reduce our broader environmental footprint and retain as much value as possible. We divert more than 95% of our waste from landfill with more than 86% of our waste from spent grains, and other organic sources, being diverted to animal feed.

Reducing waste and greenhouse gas emissions are priorities and our leading edge project, DB Export Brewtroleum continues to be recognised globally for its innovative approach to these problems. This year, DB Export Brewtroleum won multiple awards including 11 Cannes Lions:

The project was also highly commended in the innovation category of the Energy Efficiency & Conservation Authority (EECA) Awards.

Destination %
Animal feed 87
Materials 8
Compost/Soil Improvement 0.5
Energy (Biogas) 0
Combustion with Energy Recovery 0
Combustion without Heat Recovery 0.5
Landfill 3
Unknown 1
Total 100%

Recycling Recovery Disposal

Case study