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CSR Report
Version 1.0
Editor Carlsberg Group Corporate Affairs Design and production Kontrapunkt Photos Nana Reimers Proofreading Borella projects
4th largest global brewer.
DKKbn operating profit.
by brand growth.
Employees in 2013.
Carlsberg brand volume growth in premium markets in Asia.
The Carlsberg Group at a glance

sions at our production sites. Furthermore, we have partnered with key packaging suppliers and set targets to reduce the environmental impact of our packaging. We have updated our Responsible Drinking Policy and corresponding guidelines reflect-ing our commitment to promote and support responsible consumption. Responsible drink-ing will remain one of our key focus areas going forward. JØRGEN BUHL RASMUSSENPresident & CEO As part of the global Commitments to reduce harmful drinking ( We know that our success depends on a Our new three-year targets (2014-2016) healthy environment and a society where collaborated with our global peers to define reflect our ambition to continue integrat- beer is accepted and cherished by all stake- a joint list of key performance indicators in ing CSR into the value chain and business holders. We are therefore striving to reduce order to track and report both the progress strategy. CSR helps us to manage risk, our negative impact and develop innovative we make and the challenges we face in our reduce costs and create future business op- solutions to enhance our positive contribu- efforts to reduce harmful consumption and portunities. We recognise that partnership tion to the environment and society upon ensure that the enjoyment of beer is part of and collaboration will be essential if we are which we depend for our future growth. a healthy, active lifestyle.
to fulfil our 2016 targets. In addition to our commitment to the UN Global Compact, When J.C. Jacobsen founded Carlsberg in The starting point for this journey is a high we will engage with stakeholders and enter 1847, he was clear that the brewery should level of compliance with our responsible into new partnerships so we can continue to contribute to the economic and social devel- marketing codes (the Marketing Communi- grow responsibly for the benefit of the Carls- opment of society. Building on this heritage, cation Policy). Our 2013 results show that berg Group and the environment and society corporate social responsibility (CSR) continues there is room for improvement on aware- of which we are a part.
to be integrated in the way we do business at ness and compliance levels. In response, At Carlsberg we are determined
both global and local level. At Carlsberg we we have strengthened the training schemes strive to make CSR a living, vibrant part of our and made the CEOs in all our local markets to deliver on our growth strategy values and performance culture. I recognise directly responsible for compliance with the
and ambitious commercial
the value of top management ownership and policy and guidelines.
Jørgen Buhl Rasmussen therefore remain personally committed to keeping CSR high on the short- and long- FOCUS ON BUSINESS INTEGRATION term agendas of the Executive Committee.
AND OPPORTUNITIESGoing forward, we recognise that improving DELIVERING ON OUR TARGETS environmental efficiency in our breweries, In 2013, we came to the end of our current delivering sustainable packaging solutions three-year target period. I am proud that and promoting responsible drinking will be we have succeeded in our focused efforts to important drivers for securing our licence to reduce energy consumption and cut CO2 emis- operate and creating future growth and value.
Stakeholders differ due to their negative and dedicate extra focus and resources to impact (risk) or positive impact (opportun- our three key initiatives: Responsible Drink- ity) on the evolution of our ambitions and ing, Sustainable Packaging and Efficient goals. Hence the approach to identifying and Brewery (reducing water, energy and CO2 at analysing stakeholders, both present and our production sites). This approach has the future, is based on the principle that their benefit of making CSR not only a reputa- involvement with us should contribute to the tional and risk-mitigating buffer but also a creation of long-term value. In 2013, we ex- strategic driver for business opportunities panded the scope of our stakeholder engage- and future value creation for the Carlsberg This report reflects our ambition to be a transparent
ment in accordance with the development of Group and society. Integration is not, how- company. Reporting on progress, achievements and
our key initiatives. In particular, sustainable ever, accomplished overnight. It is a journey challenges is important to us and our stakeholders.
packaging has led to more and closer col- that involves finding new solutions and ways laboration with key suppliers. You can read of working that take into account the rapidly more about stakeholder engagement in the changing global environment and society in specific policy sections of this report.
which we operate. We plan to conduct a new full materiality All CSR areas, including our key initiatives, The CSR polices and targets covered in topics that have the potential to impact the assessment in 2014, including internal and will be explained in detail in this report.
this report reflect the topics that are most value and/or perception of the Carlsberg external stakeholder assessment. material to us in terms of impact and the Group, whether positively or negatively. importance of these topics to internal and Based on this definition, and on the focus VALUE CHAIN INTEGRATION and priorities of our business, we have found We have been working strategically with no need to change the scope of the top- CSR since 2008 to drive and document pro- MATERIALITY AND STAKEHOLDER ics with which we work. Reducing energy gress and learnings. We have chosen to work and water consumption and CO2 emissions with and report on the sustainability areas We have conducted an internal review of our at production sites, developing sustainable where we have the biggest impact and on materiality assessment, which was devel- packaging and promoting responsible drink- which our external and internal stakeholders oped in 2011 (see page 13 of the CSR Report ing are still our key initiatives, alongside driv- believe we should be focusing. In total, we 2012). For us, materiality encompasses all ing value chain integration of all our policies.
work with eight areas across the value chain CORPORATE SOCIAL RESPONSIBILITY IN THE VALUE CHAIN
About this report NEW THREE-YEAR TARGETS Selected information in this report is as- In 2013, we came to the end of our current GOVERNANCE MODEL
sured by KPMG. The assured information is three-year target period. In this report, we indicated on the relevant pages by the text will review how we performed in each of "Within KPMG's assurance scope". To read our policy areas and communicate the new KPMG's conclusions, go to the independent targets defining our direction and ambitions Supervisory
assurance report on GOVERNANCE AND DECISION-MAKING WE WELCOME FEEDBACK Board has overall Carlsberg's Supervisory Board continues to As always, we welcome feedback, questions responsibility for CSR.
be ultimately responsible for all aspects of and comments on the content of this report. our business, including CSR. The Executive Committee provides strategic guidance and Please e-mail your feedback to: approves policies, strategy and KPIs. Specific responsibility is assigned to the SVP, Group Corporate Affairs. Group functions and regions drive and support our global targets, ExCom provides strategic guidance while local champions and policy owners are and approval of policies and targets.
responsible for implementation and compli-ance. The governance structure is designed to ensure local and cross-functional owner-ship and drive regional targets. Group CSR
Group CSR
TRACKING DATA AND MEASURING & Public Affairs
PERFORMANCEThe data in this report is tracked through a Group CSR develops and Group Regions approve The functional CSR policy drives forward the CSR and drive regional CSR owners drive strategy and CSR reporting system introduced in 2009. strategy, and provides performance to support policy implementation, and This system helps us to collect data, measure expertise to support global targets.
set targets.
CSR initiatives.
performance and evaluate policy implemen-tation at local, regional and global level. We use standardised definitions across markets to ensure better data quality and comparability. Local CSR
Local CSR
Each year, we measure progress, or lack of progress, in each policy area by conducting Local CSR champions are Local CSR policy owners responsible for the local drive policy implementation local self-assessment questionnaires. This implementation of the enables us to share best practices among CSR strategy.
markets and companies, and to understand where we need to focus our efforts, where we need additional efforts and where we need to investigate further.
The Carlsberg Group employs more than The Carlsberg Group's taxes borne in 2013 40,000 employees directly within Produc- were DKK 31.3bn1. The vast majority of our tion, Logistics, Sales & Marketing and taxes borne is indirect tax incurred through Administration. Our employees work in the excise duties, which totalled DKK 27.2bn1 (ap- corpor ate offices as well as at our produc- prox. 86% of total taxes borne). The remain- tion sites, which are often in less populated ing taxes borne of DKK 4.1bn (approx. 14% areas. We employ a highly skilled workforce of total taxes borne) is through direct taxes, in Sales & Marketing, Finance, Production, such as energy tax, corporate income tax and Logistics etc.
social security contributions for employees.
The Carlsberg Group has a positive economic impact on the 140
economies and societies in which we operate. The Carlsberg
In addition to the many direct employees, TOTAL TAX CONTRIBUTION Group employs more than 40,000 people directly and
the Carlsberg Group also generates employ- In addition to the taxes borne, we also col- additionally generates approximately 370,000 jobs in related
ment in related sectors in connection with lected taxes on behalf of governments, for the production, sales and marketing of beer. example payroll taxes from business activities. industries such as agriculture and hospitality. We paid DKK
The indirect and induced contribution to 42.5bn in taxes in 2013 and contributed DKK 79.2bn to GDP
employment is generated through purchases Thus, the total tax contribution to society growth globally.
in industries such as agriculture, packaging consists of both taxes borne and taxes col- and logistics as well as induced employ- lected. In 2013, our total paid tax contribution ment in the hospitality and retail sectors. amounted to DKK 42.5bn.
It is estimated that the total jobs created by the Carlsberg Group amount to 368,471.
ECONOMIC VALUE GENERATED
(DKK 95.5BN)
Global direct jobs Global indirect/induced jobs Operating costs
49.3% (DKK 47.1bn) Source: EY calculations based on employment figures and market data.
Employee wages
9.3% (DKK 8.9bn) Providers of capital
TOTAL ECONOMIC VALUE In 2013, the direct generated economic value Taxes borne incl.
in the countries in which we operate totalled excise duties
32.8% (DKK 31.3bn1) Economic value
retained
Our contribution consists of many different aspects, including excise duties, employee wages, pensions, benefits and goods pur-chased from suppliers.
The contributions in the five main areas are summarised in the graph to the right.
1 Within KPMG's assurance scope.
Economic value generated WIDER ECONOMIC CONTRIBUTIONWe have quantified the indirect and induced EMPLOYMENT GENERATED TO SOCIETY
impact on society of our generated economic value and taxes. Based on calculations by EY, Total Carlsberg
in 2013 Carlsberg indirectly generated DKK employees
47.4bn through income tax and social contri- butions from employees, supplier and retail/wholesale employees, VAT and hospitality.
Production
Sales & Marketing
Logistics
Administration
Our direct and indirect/induced economic contributions have a positive impact on the societies in which we operate. We are proud employment
of this contribution, and also aware that it comes with a responsibility to continue to generated
(indirect/induced)
develop and grow our business in a way that benefits Carlsberg as well as the envi- Hospitality
Suppliers (including agriculture)
ronment and society upon which we depend for future growth. ECONOMIC CONTRIBUTION GENERATED TO GOVERNMENTS
Total tax
Total value added in industry sectors
contribution by
Carlsberg
Employee taxes
Corporate
Other taxes
Excise duties
income tax1
5.4% (DKK 2.3bn2) Total government
revenue generated
(indirect/induced)
(DKK 47.4bn)
VAT withheld by
Income tax and social contributions from employees
Hospitality
Carlsberg
hospitality and retail
in all sectors (suppliers, hospitality and retail)
Suppliers (including
wholesale
1 Corporate income taxes including withholding taxes. 2 Within KPMG's assurance scope. The production of beer is dependent on a stable flow
of raw materials sourced directly from nature. As such,
we appreciate the importance of a healthy, clean
environment to our production and future growth and
we remain dedicated to reducing our impact on the
environment and the climate.
Environmental efficiency has been a key pri- The results reflect a high level of compliance ority in the Carlsberg Group for several years. with policy and guidelines as well as aware- Efficiency plays a vital role, whether in re- ness of resource efficiency and cost savings searching and developing new barley breeds, across the Group. However, we did not meet optimising production processes, rethinking our 2013 water reduction target. Going for- packaging or improving our distribution and ward, we will further stress the importance sales. This has brought about many positive of water savings at our breweries.
results in terms of continuously improving resource efficiency at production sites and 60 out of 75 sites have now obtained the generating cost savings.
environmental ISO 14001:2004 certification. This is mandatory for all majority-owned 2013 – CONTINUOUS FOCUS ON production sites, and new production sites ENVIRONMENTAL EFFCIENCY are required to obtain certification within In 2011, we defined ambitious three-year three years of acquisition. targets for reducing energy and water We remain dedicated
consumption and CO2 emissions at pro- A key initiative in 2013 was the develop- to reducing our impact
duction sites. We are proud to report ment of a new utility strategy, enabling us on the environment and
strong performance on energy and CO2 to reduce energy consumption and carry out utility improvement programmes in Russia.
the climate.
1 Environment section within KPMG's assurance scope (page. 2 The environment section (pages SVP, Group Supply Chain reflects the requirements for CSR reporting under section 99a of the Danish Financial Statements Act, with specific focus on climate change.
The main contributor to this result was a are working systematically to share best high degree of implementation of our util ities practice, track and monitor performance and programme across the Group. In 2013, nine improve forecasting abilities. In Asia, the Pro- out of 17 breweries in Eastern Europe and duction Excellence initiative has contributed to 17 out of 24 breweries in Asia reduced their energy savings and operating cost reductions. relative energy consumption. Performance In Western Europe, our continued focus on was improved for Western Europe with 17 energy consumption was a major contributor out of 30 breweries. However, consumption to our overall achievements.
increased unexpectedly at 28 sites, and we are currently investigating the underlying reasons in order to align these sites with We recognise the risks to our business Group expectations. presented by climate change and acknowl-edge our own contribution to this global Our Eco Company programme in Russia was challenge. Continued and focused efforts consumption in 2013 was 28.0 kWh/hl, giving expanded to reflect a broader set of environ- have helped us to reduce our CO2 emissions The consolidated figures show that relative pri- us a total reduction of 4.3 kWh/hl (-13.3%) mental areas. The programme has delivered during the past year. Our strategy has three mary energy consumption per hectolitre was since the beginning of our target period in 2011. energy and water savings since 2011, and now focus areas: reducing energy consumption; 20.0 kWh/hl. This is a reduction of 1.0 kWh/ it also incorporates areas such as land degra- changing our energy mix towards cleaner hl since 2012. Our relative electricity consump- We are proud of this performance, which dation and packaging, reflecting our ambitions energy sources; and offsetting emissions by tion was 8.0 kWh/hl, a reduction of 0.1 kWh/ inspires us to keep pushing and challenging to integrate CSR across the value chain. Good purchasing renewable power certificates1. hl since 2012. This means that our total energy ourselves to achieve even greater reductions. 2013 results reflect the fact that employees In 2013, our CO2 emissions per hectolitre of product produced were 7.1 kg CO2/hl, thereby reducing our emissions by a further 2.7% since 2012 and achieving our target of 7.1 kg CO2/hl. Relative energy consumption
Relative CO2 emissions
Thermal energy mix
Overall, we have reduced emissions by 26.8% since the beginning of our target period in 2011.
2016 target:
2016 target:
In 2013, 3.7% of our thermal energy came from renewable sources such as biogas cap- in relative energy tured from wastewater treatment and bio- mass. 13 of our breweries now capture biogas from wastewater treatment operations.
To increase our share of renewable energy Natural gas
District heating
originating from by-products, we continued feasibility studies on the use of by-products Heavy fuel oil
Renewable
Light fuel oil
as an energy source. 27 studies were carried 2010 2011 2012 2013 2010 2011 2012 2013 out, from which we will select three brewer- ies to roll out pilot projects in 2014.
Allowing for adjustments of 2013 baseline when relevant. 3 CO2 emissions restated due to changes in methodology.
1 Documented by Guarantees of Origin certificates.
The main contributor to our CO2 reductions has been the purchase of renewable power certificates, which offset emissions gener-ated by the use of CO2-intensive energy sources. We have bought a total of 372,800 MWh, corresponding to our electricity use in Western Europe.
PETER ERNSTINGSVP, Group Supply Chain We have reinforced our performance and optimised logistics networks and systems. For example, we continued the implementa- ENERGY AND EMISSIONS
tion of our global route planning tool, which is helping us to further improve the efficiency 2013 achievements of our deliveries and thereby reduce fuel con- 1 Define new utility and environmental strategy
Total energy consumption: Target achieved sumption per kilometre driven and product Total energy consumption: 28 kWh/hl(-13.3% vs 2010) delivered as well as reduce CO2 emissions. Continue to improve utility efficiency globally CO2 emissions: New Efficient Brewery Programme developed. In 2013, four countries implemented the route by partnering with external companies To be implemented in 2014-2016 planning tool, bringing the total number of Pilot new utility management software Target achieved countries to have implemented the tool since Total CO2 emissions: 7.1 kg CO2/hl (-26.8% vs 2010) 2012 to eight. We also focused on driver Partnerships initiated with selected suppliers in the UK, training to improve fuel consumption in distri- Russia and Estonia bution. Finally, we developed environmental guidelines for warehouses in Western Europe Plan revised to prioritise alignment with other IT projects that will be introduced in 2014. 2 Initiate Group project to explore renewable energy
Renewable energy part of new Efficient Brewery THE ENERGY CHALLENGE 3 Continue pilot tests with renewable energy generation
Feasibility tests conducted at 27 breweries The purchase of renewable power certifi- cates has been the main contributing factor 4 Implement route planning tool in Western Europe as part
Route planning tool implemented in 4 European in meeting our emission targets. However, of the roll-out of the business standardisation project we will continue our efforts to replace fossil 5 Continue driver training programme in Western
Establish a 5-year plan in Western Europe Target partially achieved fuel energy sources. Europe and monitor implementation status to ensure training for all drivers Driver training conducted in all Western European countries throughout 2013 Roll out monitoring tool in 3 countries Roll out monitoring tool in countries with direct We recognise that a shift from high- to low- distribution to stores Tool implemented in 2 additional countries carbon energy sources remains a challenge 6 Develop and implement environmental guidelines
Guidelines developed in 2013; roll-out scheduled for us given our increasing volumes in emerg- ing markets that use CO2-intensive sources.
reduced their relative water consumption. and local government, we aim to deliver envi- In Western Europe, performance was 23 out ronmental benefits for Russian society through of 30 breweries. At the same time, consump- restoration of ecosystems, improved environ- tion increased at 26 sites, and the procedures mental management and waste management, and systems of these sites will be investigat- while at the same time reducing the environ- ed in order to determine the root cause and mental impact of producing beer at Baltika initiate corrective measures if necessary.
Breweries. In 2013, leading international experts conducted on-site assessments to define and MANAGING WATER SCARCITY plan the projects to be rolled out from 2014.
Building on our water risk assessment from 2011, we conducted a new water risk analysis, Furthermore, we entered as a corporate partner focusing in particular on our Asian business. in the public-private partnership Water Benefits We found that supply and regulatory water Partners. The aim of the partnership is to de- Water is essential for producing beer and en- With a consolidated figure of 3.3 hl/hl, we had risks have to be addressed and that focus on velop a financial mechanism that can support abling future growth. Water is also an increas- a flat 2013 performance. We reduced our water watersheds has to be prioritised going forward. water-saving projects in areas facing water scar- ingly scarce resource. We are constantly explor- consumption by 5.7% (0.2 hl/hl) since the city. We entered into the partnership to learn ing new ways to reduce water consumption beginning of our target period in 2011, but we from industry peers and share best practices. and enable sustainable use of water.
did not reach our target of 3.2 hl/hl for 2013. In late 2012, we signed a partnership agree- We also intend to add an industry perspective This result is not satisfying. In the future, we ment with UNIDO. Together with civil society to the development of a new water scheme.
We integrate water-saving projects at will pay special attention to strengthening the our production sites while imposing strict water-saving culture at our breweries.
Group requirements to ensure compliance with the necessary standards for waste- In 2013, nine out of 17 breweries in Eastern water treatment.
Europe and 13 out of 24 breweries in Asia 2013 achievements 1 Continue water efficiency projects Water consumption: 3.2 hl/hl Target partially achieved
Total water consumption: 3.3 hl/hl (-5.7% vs 2010) Relative water consumption
2 Conduct new water risk assess- Long-term strategic approach Target partially achieved
ment according to Beverage to water risk management to BIER principles for water source manage- Industry Environmental Round- ment applied in our CSR reporting system table (BIER)2 principles Detailed water risk assessment Municipal water
2016 target:
for Asia also conducted Own boreholes
in relative water Take part in public-private New technologies to reuse Target achieved partnership relating to water water inside and outside our Explored new technologies for reusing breweries to be explored water at selected breweries Surface water
Entered into public-private partner- ship Water Benefits Partners 3 Further develop partnership
Key projects of the UNIDO in Russia with UNIDO partnership formalised 2010 2011 2012 2013 Allowing for adjustments of 2013 baseline when relevant.
Primary and secondary packaging account Furthermore, we followed up on the weight for approximately 45% of our total CO2 benchmark we conducted in 2012 by assess- emissions, making it an area where poten- ing the weight reduction potential of our tially we can have a substantial, positive primary packaging. We also launched a new impact on the climate and environment. project to increase the return rates for refill- Sustainable packaging is the second of our able glass bottles and reduce the weight of three CSR key initiatives. We have instigated all primary glass packaging.
this initiative because we want to build up our resilience and prepare for future growth CARLSBERG CIRCULAR COMMUNITY in a business environment that is facing an An important part of the Cradle-to-Cradle® increase in the scarcity of natural resources. project is the development of the Carlsberg We are aiming to develop solutions that Circular Community, which is made up of benefit not only our business, but also the partnerships between the Carlsberg Group environment and society. and selected suppliers. We have used the Cradle to Cradle® Design Framework, cre- During 2013, we conducted assessments ated by Professor Michael Braungart and Mr. using our instant life cycle assessment (LCA) William McDonough with their companies tool, engaged consumers and customers in EPEA Internationale Umweltforschung GmbH recycling initiatives and created a roadmap and MBDC, LLC, to develop a C2C roadmap for integrating the Cradle-to-Cradle®1 (C2C) outlining the materials and packaging types design perspective in our packaging portfolio. we want to further analyse and innovate. Our Part of this work involved commencing C2C joint aim is to create more sustainable prod- assessments of selected packaging materi- ucts by optimising our packaging portfolio to als in order to further assess their reusability re-enter either the technical or biological cy- and recyclability. cles at the same or higher quality and value. Reduce weight or change to packaging with lower environmental impact.
Increase reuse of packaging materials, with the main focus on glass bottles.
H SUSTAINABLE S
Encourage consumers to recycle packag- ing and increase the amount of recycled content in new packaging.
Rethink packaging and waste, for example recycling of packaging materials by chan-nelling the material into other products.
1 Cradle-to-Cradle® and C2C® are registered trademarks of McDonough Braungart Design Chemistry LLC.
JØRGEN BUHL RASMUSSENPresident & CEO We also conducted consumer engagement cooperate with retailers and competitors to approach to and opinion on recycling, while at initiatives in nine Group markets, both at fes- retrieve packaging, thereby converting the the same time they increase their knowledge tivals and in cooperation with our customers. material from waste to value. Through the about the value and importance of recycling Four of these markets carried out initiatives consumer engagement activities, we receive and responsible use of natural resources.
through industry partnerships, where we valuable feedback from consumers about their 2013 achievements 1 Identify weight reduction targets Develop 3-year targets
Target achieved for primary packaging (2014-2016) across 2016 targets for sustainable programme initiatives packaging developed 2 Conduct Cradle-to-Cradle®
Cradle-to-Cradle® roadmap analysis to identify potential developed and specific products for C2C-certified products in the and initiatives integrated into 2014 3 Create consumer engagement
Consumer engagement campaigns communication around recycling conducted at 9 Group companies (26%) 4 Develop a sustainable packaging
Sustainable packaging idea cat- idea catalogue and distribute it alogue launched and distributed ENERGY, EMISSIONS AND WATER
1 Efficient brewery
Utility Leadership• Introduce ISO 50001 energy management • Launch new total water management (TWM) Technology Pioneer• Continue to develop supplier partnerships to improve 5-10% reduction in relative energy consumption1 and innovate efficient technologies • Design resource-efficient and sustainable CO2 emissions We have defined new three-year targets We will also begin implementing two new flagship brewery plant 5-10% reduction in relative CO 2emissions1 (2014-2016) that encourage us to continue programmes to improve the environmental our ambitious efforts and find smarter, more impact of our production and logistics. Future Resources Water consumption • Continue water source protection 5-10% reduction in relative water consumption1 innovative ways of managing and developing • Explore further purchase of renewable energy our business. We will continue to focus on Among other things, the Efficient Brewery areas where we have the greatest impact on Programme will initiate activities that will • Achieve 1% improvement in renewable energy the climate and environment: reducing en- help us achieve our 2016 efficiency targets. ergy and water consumption and CO Waste to Energy The Efficient Brewery Programme consists sions at production sites and continue our of four initiatives: • Evaluate relevant breweries (>400,000 hl capacity) on feasibility of biogas production focus on developing sustainable packaging. • Initiate 1 Waste to Energy pilot in each 1. Utility Leadership of our 3 regions Our aim is to further reduce our environ- Continue to improve the energy and water 2 Sustainable logistics
mental impact throughout the value chain efficiency of our brewery sites and reduce Continue route planning/telematics implementation while at the same time developing solutions our CO2 emissions.
Continue eco-driver training 2016 targets to be developed during 2014 that enable us to contribute positively to the environment and society. Furthermore, we 2. Technology Pioneer Implement environmental guidelines for warehousing will focus on the implementation of our envi- Develop resource-efficient technologies.
ronmental standards at new majority-owned Continue focusing on water risk mitigation production sites in Asia.
3. Future ResourcesEnsure a sustainable supply of energy and In 2014, we will roll out the first projects under water sources.
our UNIDO partnership. A main project will be the construction of a field research station 4. Waste to Energy to study the impact of barley cultivation and Use brewery by-products as energy sources.
1 Allowing for adjustments of 2013 baseline when relevant.
train farmers to reduce land degradation.
PETER ERNSTINGSVP, Group Supply Chain The second programme is the Sustainable Logistics Programme. Here, we will also implement four initiatives: 1. Fleet PerformanceImprove environmental performance of our 1 Sustainable packaging
Cradle-to-Cradle® (C2C) roadmap • Launch Carlsberg Circular Community Have 15 suppliers in the Carlsberg Circular and onboard at least 3 additional suppliers Community working actively to create C2C solutions 2. Logistics Excellence • Conduct C2C assessments of at least 3 products Build a greener logistics culture and drive pro- • Obtain 1 C2C product certification Obtain 3 C2C product certifications cesses to improve environmental behaviour.
2 Consumer and customer engagement
All Carlsberg Group companies to conduct annual • Drive consumer awareness on recycling through consumer-facing sustainable packaging activity 3. Warehouse Infrastructure campaigns and customer cooperation Create green initiatives in warehouses. 3 Performance improvements
Improve return rate in markets where returnable • Reduce environmental impact of packaging glass bottles are part of the long-term packaging 4. Collaboration and Partnerships by collecting more refillable glass bottles and reducing the weight of our packaging Work with customers, other FMCGs and • Develop transparency of RGB return systems third-party logistics providers to create op- and current action plans by market Optimise glass packaging weight through internal and external benchmarking • Develop overview of best practice to help local markets achieve return rate improvements The most important activity within the 4 Innovations and life cycle assessments
Assess all new products using the instant LCA • Upgrade and launch a new version of the tool and include C2C analysis in assessments Sustainable Packaging Programme will be to instant LCA tool and include liquids incorporate more partners into the Carlsberg Circular Community platform to increase the scale and scope of solutions.
Furthermore, we will develop a water action plan for Asia to mitigate our water risks and engage in the New Visions for Agriculture Pro-gramme led by the World Economic Forum.
Cooperating to engage tomorrow's consumers
Sustainability is a collective issue that Going forward, we will use social media needs to be addressed by multiple to communicate innovative and sustain- stakeholders in society.
able solutions that inspire consumers to live more sustainable lives.
In 2013, the Carlsberg Group participated in two cross-industry projects. Our aim Learn more about the Sustainable was to find ways of engaging with Lifestyles Frontier Group: consumers and industry peers on global sustainability challenges. The projects were led by BSR (Business for Social Responsibility – Sustainable Lifestyles Frontier Group) and WEF (World Economic Forum – Engaging Learn more about the World Together with industry partners we entered into these engagement projects to promote sustainable lifestyles and identify the drivers that instigate change and enable businesses to explore sus-tainable business models.
Continuous focus on efficiency in China
Breweries in Western Europe introduce environmentally friendly vehicles
Our Chinese breweries continue to Water consumption is also a focal A number of Carlsberg Group companies with a greener profile consists of one truck reduce total energy consumption point in Asia. Since 2012, three of in Western Europe have implemented ini- running on liquid methane gas and two our Chinese breweries (Korle Brew- tiatives to reduce the environmental impact trucks using both electricity and diesel to ery, Akesu Brewery and Carlsberg of our logistics operations.
power their hybrid engines.
In 2013, Ningxia Xixia Jianiang Brew- Brewery Guangdong) have improved ery reduced total energy consump- water efficiency by more than Our Swiss company, Feldschlösschen, has Carlsberg Danmark has introduced new tion by 9% on 2012. 10% by setting ambitious targets, pioneered the world's first 18-tonne electric hybrid cars in urban areas of Copenhagen. improving equipment efficiency and truck, the E-FORCE truck. With this truck, The cars are optimised for driving in cities This was achieved by optimising the Feldschlösschen is able to offer CO2-neutral and towns; the electrical engine serves as a brewery operation in general and deliveries to customers. The truck can run generator and recharges the battery when improving the efficiency of the equip- Access to clean, stable and adequate up to 300 km on one six-hour battery the brakes are used, thereby reducing fuel ment used at the brewery. Further- water supplies is another focus charge, and the average energy consump- consumption and CO2 emissions. Five hy- more, the site focused on preventive area for our production in Asia. We tion is 100 kWh per 100 km on highways.
brid cars have already been purchased and maintenance, which reduced unex- conducted a high-level water risk seven more will be purchased in 2014. pected production stops, positively assessment covering all the regions The truck's battery is charged using hydro- impacting brewery performance. in Asia where we operate brewer- electricity. "This vehicle's high payload fits Together with Carlsberg Supply Com- ies. The assessment covers both a the needs of Feldschlösschen's customers. pany (CSC), Carlsberg Danmark has The same approaches have been short- and longer-term perspective We're proud to serve our customers in an also introduced 31 new, environmentally applied at Dali Brewery and Guang- on the future water supply in Asia. efficient, quiet and CO2-neutral way," says friendlier diesel trucks to its fleet. The dong Brewery. Both breweries dem- In the coming years, we will address Thomas Amstutz, CEO of Feldschlösschen.
trucks demonstrate the latest innovations onstrated similar rates of improve- the findings from the assessment to within environmentally friendly transporta- ment in total energy consumption ensure that we have access to sus- Carlsberg Sverige has engaged in the tion and all meet the Euro 6 environmental from 2012 to 2013. tainable and stable water supplies CleanTruck project to increase low-carbon standard. Kaj Nielsen, National Distribution wherever we operate.
transportation across Sweden. Carlsberg Manager, Carlsberg Danmark, says: "These Sverige invested in three trucks running on are the most sustainable diesel trucks you alternative fuels. The portfolio of trucks can drive these days." We are committed to improving our environmental and social
footprint. We implement necessary actions to understand,
monitor and improve the social and environmental aspects
of our sourcing, thereby protecting our reputation as a
responsible brewer while increasing demand for sustainable
sourcing solutions in the global marketplace.
In close cooperation with suppliers and indus- to gain insights into their operations and try partners, we seek to identify solutions to identify how they work with CSR-related improve the ethical, social and environmental risks. Suppliers were audited by third-party performance of our supply chain. auditing companies on issues related to envi- 2013 achievements ronment, business practices, health & safety Evaluate findings from Respon- Target achieved 2013 – SUPPLIER INSIGHTS and labour rights. The audits demonstrated 1 Finalise pilot programme
including 15 Group suppliers for sible Supplier Initiative pilot and Findings from pilot programme no critical non-compliance issues. Responsible Supplier Initiative decide on next steps evaluated and integrated into the Based on learnings from previous years, we roadmap for the next 3 years have evaluated our strategy and approach A number of minor non-compliances with Update the Supplier and Licensee SLCC updated. To be distributed to responsible sourcing and developed a our Supplier and Licensee Code of Conduct Code of Conduct (SLCC) among suppliers in 2014 roadmap for future initiatives under our were identified and resolved. This resulted in new Responsible Sourcing Programme. improvements in safety and environmental The programme is designed to help us im- issues at supplier sites. Some non-compliance prove our knowledge of social, ethical and issues are still being monitored and closely environmental issues in our supply chain, tracked. In the next three years, we will ex- monitor compliance with our Supplier and pand the scope of this programme, including Licensee Code of Conduct and improve the more suppliers and focusing in particular on CSR standards of our suppliers. conducting audits in our Asian supplier base.
In 2013, we conducted a programme invit- The Sedex platform, Suppliers Ethical Data ing key suppliers to participate in an audit Exchange (ontinued Responsible sourcing starting point for cooperation with suppliers, 3. Sustainable Packaging and we include it in all contracts. The Code of Reduce the environmental impact of our Conduct is aligned with our CSR pol icies on packaging. See plans and targets on .
Labour and Human Rights, Health & Safety, Environment and Business Ethics. During 2014, we will primarily focus on on-boarding suppliers in the Responsible Supplier We continued our engagement in AIM- Initiative to further strengthen our insights and cooperation with suppliers and thereby industry forum for fast moving consumer improve our supply chain CSR performance. goods (FMCG) companies and their suppli-ers, to secure global alignment and imple- We aim to onboard suppliers with the high- ment the standards in our Code of Conduct. est spend in order to achieve the widest and SVP, Group Procurement most substantial impact. We will specifically Through this forum, we work closely with focus audits on our Asian supplier base as other FMCG companies to share knowledge, maturity levels need to improve in this region.
define CSR standards and promote industry cooperation. 2016 – HIGH STANDARDS AND COMPLIANCEWe will continue our journey towards im- to be a valuable instrument for enabling us to plementing ethical and responsible sourcing share information with our suppliers regarding practices across the Carlsberg Group. their CSR performance. It is an effective and transparent tool that allows us to close non- This will protect our reputation as well as compliance incidents and gather learnings our licence to operate and grow. Through 1 Responsible Supplier Initiative
along the way.
to 2016, our new Responsible Sourcing • Close non-compliance incidents according to findings from pilot in 2013 Programme will be delivered based on three • Continue to onboard suppliers in the Responsible Sourcing Programme major initiatives.
• Conduct on-site audits of key suppliers in Asia• Continue to monitor and ensure corrective actions are implemented by suppliers Each year, we conduct quality audits of selected suppliers. The supplier quality audits 1. Responsible Supplier Initiative also include CSR questions. In 2013, we Define CSR standards for key categories revised these CSR questions to better align and continuously monitor compliance the content with the CSR audits. In total, we and cooperate with suppliers to improve carried out 142 quality audits: 66 in Western Europe, 57 in Eastern Europe and 19 in Asia.
2. Buying Better Barley SUPPLIER AND LICENSEE Promote sustainability through sourcing and processing of barley and other starch- We have updated our Supplier and Licensee containing raw materials and cooperation Code of Conduct to meet internal and exter- with farmers in our agricultural projects. nal expectations. The Code of Conduct is our Assessing suppliers in Malaysia
The social and environmental The assessment covered: child standards we set when purchasing labour, forced labour, discrimination, supplies affect the social and en- freedom of association, health & vironmental footprint of our busi- safety, working conditions, the envi- ness. At the same time, we protect ronment and CSR management.
our reputation and maintain our licence to operate.
GAINING KNOWLEDGE AND BUILDING TRUST Initiated by the Royal Danish Carlsberg Malaysia obtained a Embassy of Malaysia, Carlsberg greater understanding of its sup- Malaysia assessed four suppliers pliers' performance and compli- during the summer of 2013, taking ance with our Supplier Licensee an important step in addressing Code of Conduct. They also got unethical sourcing and ensuring to know the suppliers better and lean manufacturing and quality took the first step in building a practices of suppliers in line with closer working relationship.
industry standards.
Make the difference for your city, says Baltika
Baltika Breweries has implemented glass bottle collection systems in 11 cities across Russia. Baltika aims to improve the recycling rate of its bottles, and also to help introduce a waste collection system in Russia. In 2013, a memorandum of understanding between Baltika Breweries and the Danish Ministry of the Environment was signed by Ida Auken, former Danish Minister for the Environ- Striving for a world without waste
ment, and Dr Isaac Sheps, President of Baltika Breweries and SVP, Eastern Europe, Carlsberg Group. For years Carlsberg UK has been a "Carlsberg UK has been a valuable The Danish ministry will transfer knowledge and know-how proactive partner within WRAP, the and proactive partner across the about water and recycling to contribute to improving the Rus- UK government's Waste Reduction years, demonstrating their readi- sian waste management system.
Action Plan. Following a successful ness to reduce waste," says Richard light weighing programme for bottles Swannell, Director, WRAP.
"The issue of separate waste collection and recycling is very in 2011, Carlsberg UK focused on re- relevant for Russia, as well as the rest of the world. Russia ducing the weight of cans during 2013.
AWARD-WINNING COMPANY urgently needs to agree a national policy as regards returnable Carlsberg UK is currently the bench- container collection. Baltika calls on society and business not Colin Stewart, Packaging Develop- mark for best practice in many areas, to ignore ecological initiatives, which will help to preserve the ment Manager, says: "We managed and in 2013 it was once again the beauty of Russian natural resources," says Dr Sheps.
to reduce the gauge on our 440 and recipient of the Green Apple Gold 500 ml cans from 0.255 to 0.250 Award from the Green Organisation, Baltika also invited relevant regional and federal experts and mm. That may not sound like much an independent environmental group.
authorities to join the project to identify criteria for the most but, when applied across the 690m successful glass collection scheme.
cans we use every year, it has a major impact. Going forward, we're Baltika shared results from the 2013 project with all stakeholders working with our suppliers to trial an in order to help establish a state approach to production and even greater reduction to 0.245 mm." consumption waste management.
Carlsberg Group CSR Report 2013 These principles are the starting point for local activities and awareness campaigns, our global commitments with industry peers and marketing campaigns within the Carlsberg Group. 2013 – DEFINING DIRECTION AND AMBITIONIn the past few years, we have developed a responsible drinking action plan that is both global and local. On the one hand, we have engaged with global industry partners and public and private health authorities to define positive standards when it comes to Every day, beer is enjoyed by millions of people worldwide. Beer
consumption of alcoholic beverages as we SVP, Group Sales, Marketing & Innovation consumed responsibly is compatible with a healthy and active lifestyle
believe we share a common responsibility to for most adults. However, we are conscious that most beer contains
reduce the risks of harmful consumption. On alcohol and that overconsumption has severe and harmful effects.
the other hand, we have instigated activities (). This non-profit organisation that maximise our positive contribution to is supported by major international alcohol the local societies in which we operate.
We strive to grow our business promoting the Overconsumption of alcohol can have Throughout 2013, we have developed a Re- ICAP's mission is to reduce harmful drinking responsible enjoyment of beer and are work- sponsible Drinking Policy and accompanying and encourage dialogue and partnerships ing together with public and private stake- guidelines as well as reviewing our existing with key global stakeholders to solve the holders to reduce harmful consumption and 2. Prevent underage drinking Marketing Communication Policy (MCP) to en- complex health problems and cultural issues related health risks.
Only people of the legal drinking age or sure that our internal rules and self-regulation associated with harmful drinking. above should drink alcohol. Legislation on support our ambition and efforts for future We believe that our proactive measures to en- selling alcohol to minors should be enforced.
growth in the responsible enjoyment of beer.
European Beer Pledge courage consumers to drink responsibly and our Together with more than 3,000 breweries, enforcement of responsible marketing practices 3. Prevent drinking and driving Our 2013 performance shows that our pack- we have continued our efforts to improve are contributing to public health and reducing If you drink, don't drive. We want to help aging carries health messages to consumers consumer information and ensure responsible harmful drinking. In this way, we aim to cre- prevent consumers driving under the influ- on 80% of the volume produced. We are advertising under the European Beer Pledge. ate value for society while enabling long-term ence of alcohol.
progressing well towards our commitment Among other things, we have agreed a set of sustainable growth for the Carlsberg Group.
to have health messages on all packaging. brewers' guidelines for responsible marketing 4. Discourage drinking during pregnancy The messages remind consumers about the communication practices in social media.
Our proactive approach to promoting respon- We recommend that pregnant women risks to their health of excessive or inappro- sible drinking and reducing harmful con- should avoid consuming alcohol.
priate drinking.
GLOBAL ACTIONS: COMMITMENT sumption builds on the following principles: TO REDUCE HARMFUL DRINKING 5. Responsible marketing GLOBAL PARTNERSHIPS In 2013, we progressed on implementing the 1. Encourage responsible consumption We have set ambitious self-regulating global Commitments to reduce harmful drink- Do not drink more than the weekly amounts standards for how we communicate with We continued our sponsorship of the Inter- ing that we signed with 12 other producers in recommended by public health officials. our consumers.
national Centre for Alcohol Policies (ICAP) late 2012. We strengthened and expanded our Responsible drinking Responsible Marketing Pact in 2012. Through is essentially about: having a good time MARKETING COMMUNICATION this partnership, we have cooperated with while respecting yourself, the people you are Based on the findings of an internal audit international experts, the EU and national with, the moments you share and the good report, we elevated Marketing Communica- authorities to ensure that the rigorous self- memories you take with you.
tion Policy compliance responsibilities from regulated marketing communication stand- local marketing management to local CEO ards that we have established under the pact Carlsberg Polska has been a member of a level across the Carlsberg Group in order to are implemented effectively. responsible drinking campaign in Poland for further strengthen implementation of our 10 years. In 2013, a campaign focusing on guidelines and make sure we live up to our the issue of underage drinking, "Appearances commitments and targets.
Responsible drinking activities were carried can be deceptive, ID is not", received interna- out in 69% of our companies in 2013.
tional recognition from the jury of Creative 2016 – STRONG INTERNAL AWARENESS for Good, an international initiative involving AND MASSIVE CONSUMER ACTIVATION For example, the Drink with Respect cam- leading US social campaigners. Our three-year targets reflect our commit- Director, Group CSR paign was launched by the Tuborg brand at ment to grow responsibly. As a responsible the highly popular Roskilde Festival in Den- The campaign was run by the Union of Pol- business and brewer, we are determined to mark in July 2013. The Drink with Respect ish Breweries, of which Carlsberg Polska is contribute to positive standards of behaviour strapline reflects what responsible drinking a member, as well as the Polish police.
in connection with the consumption of beer. self-regulatory policies and guidelines in order to advance our joint efforts to reduce harmful drinking. An industry progress report has been developed and audited by an independent 2013 achievements third-party assurer. 1 Further develop internal guidelines for
New 3-year targets to be developed Target achieved communicating our responsible drinking Policy, guidelines and targets defined and The report will be published on the Commit- communicated across the Group 2 Develop guidelines to prevent minors from
Present first progress report on implementation and compli- Target partially achieved inadvertently viewing alcohol beverage marketing ance with agreed common standards with industry partners Digital guidelines developed with industry partners communications on social media and draft reports in development. Publication delayed to first half of 2014 due to unforeseen We target our actions under five key areas: challenges with the methodology • Reducing underage drinking 3 Upgrade e-learning programme
Zero incidents of non-compliance with Marketing Targets partially achieved • Strengthening and expanding marketing Communication Policy (MCP) codes of practice 100% of employees developing marketing 68% of employees trained • Providing consumer information and communications to be trained responsible product innovation • Reducing drinking and driving 100% awareness of MCP among employees involved 68% awareness of MCP achieved in developing consumer- and customer-facing materials • Enlisting the support of retailers to reduce 100% of companies to include MCP in agency agreements 70% of companies now include MCP in agency contracts 100% of companies to have procedures in place to ensure World Federation of Advertisers' 78% of companies now have procedures in place Responsible Marketing PactTogether with seven other wine, spirits and beer producers, we established the For us, the responsible drinking initiatives and Marketing Communication Policy are RESPONSIBLE DRINKING AND MARKETING COMMUNICATION
not reactive measures but proactive levers Employees trained through the marketing
to enable long-term growth and create value communication e-learning tool
both for the Carlsberg Group and for the 1 Encourage responsible drinking
All print communication above A4 and digital societies in which we operate. Implement moderation lines in our marketing and TVC to carry responsible drinking messages communication for our global brands (all print Our ambition is for all parties involved with above A4 and digital communication) developing marketing materials to comply Carry out responsible drinking programmes 3 to implement at least 1 responsible with our internal guidelines, whether they be in 90% of our companies3 (compared to 69% drinking programme Carlsberg employees or third-party agencies.
2 Provide consumer and customer information
100% of primary or secondary packaging to carry We are aiming to activate and engage with and choice health warnings to discourage harmful drinking, Expand use4 of responsible drinking messages millions of consumers and customers over and/or standardised symbols or communication • Drinking and driving the next three years and to continuously to warn about irresponsible drinking: drinking • Consumption by underage persons expand our global partnerships to promote and driving, underage drinking and drinking • Consumption by pregnant women responsible drinking as part of a healthy, Avoid producing alcoholic products with excessive active lifestyle.
amounts of added stimulants (caffeine, taurine etc.) Avoid promoting the energising or stimulant effects of In 2014, we will take further actions to deliver additives to alcoholic products Reported non-compliance incidents
on our external commitments to reduce harm- Launch responsible retail guidelines ful use of alcohol. This includes training all 3 Prevent harmful drinking
Initiate development of responsible retail guidelines key1 employees in the Responsible Drinking 100% of companies to have a procedure for ensuring Policy, thereby increasing our capabilities to be 4 Comply with Marketing Communication
Policy (MCP) compliance with MCP part of the solution to reducing alcohol harm.
• Update training materials, track execution We will be reinstating quarterly MCP training and follow up on non-compliance incidents • 100% of companies to have procedures in place 100% of companies to include MCP in agency for all relevant2 employees. Local CEOs respon- to ensure compliance with MCP in Western Europe sible for MCP compliance will receive quarterly • 100% of companies to include MCP in agency updates on training coverage and inclusion of agreements in Western Europe 100% of relevant employees to be trained MCP in agency contracts, enabling immediate 3 Markets where we have majority-owned breweries. 4 Compared to 2013 benchmark. local action in the event of compliance issues.
Our aim is to motivate and strive for zero compliance breaches of the MCP guidelines in 2016. In 2014, we will focus our efforts on Western Europe and identify best practices to share with our Eastern European (2015) Key employees are defined as senior management levels in the global sales and marketing functions and senior man- agers in regions and local markets.
and Asian (2016) markets.
2 Relevant employees are defined as those involved in developing consumer- and customer-facing materials.
Carlsberg Polska: Appearances can be deceptive, ID is not.
Carlsberg Italia supports tour
Part of our effort to promote responsible drinking involves
to prevent drunk driving
the prevention of underage drinking
If you drink, don't drive. This advice is one In June 2013, the Carlsberg invested in the "Appearances Mainly aimed at alcohol ven- of the principles of our responsible drinking Polska campaign "Appear- can be deceptive, ID is not" dors and parents of teenagers, ances can be deceptive, ID is campaign run by the Union the campaign has won the not" was recognised as the of Polish Breweries.
active commitment of Polish It was also the clear and direct message of most interesting and effective self-governments, schools and the Italian Brewers Association's Alternative international social campaign The campaign strives to Movida campaign carried out during the in the world by the jury of activate local communities summer 2013.
Creative for Good, an interna- across Poland to build a tional initiative involving lead- strong social front against A task force toured the main cities and ing US social campaigners. the sale of alcohol to minors summer holiday resorts of Italy with a and a coalition to limit this portable showroom. Inside, the public could LONG-STANDING EFFORT demographic group's access experience the negative effects of drinking in Carlsberg Polska has been ac- relation to driving. Among other things, they tively involved in responsible experienced how drinking: drinking campaigns for 10 The Polish police headquar- • Affects the vision and slows down years and since 2009 has ters is also an active partner.
reaction time.
• Affects the ability to correctly estimate the distance and speed of other vehicles.
• Leads to overestimation of driving abilities.
See how difficult it becomes to fit a pen into a "Drink with respect,"
container or hit a target with a ball close up: says Tuborg
Responsible marketing brings credibility to the beer category and enables the Carlsberg Kazakhstan combats underage drinking
Carlsberg Group to create and maintain a sustainable market for our products.
135,000 people gathered at the 2013 In June 2013, Carlsberg Kazakhstan PARTNERSHIP TO STRENGTHEN annual Roskilde Festival in Denmark. organised Beer Watch, a responsible COMPLIANCE WITH THE LAW This made the perfect setting to launch drinking campaign to prevent the sale Carlsberg Kazakhstan organised Tuborg's responsible drinking campaign, of beer to underage people. Beer Watch for the fourth time and Drink with Respect.
expanded it to cover 21 cities across The campaign is supported by the the country. In the capital of Almaty, The Drink with Respect strapline reflects Almaty Mayor's Office and Youth the participants found that 20 out of what responsible drinking is essentially Policy Development. It is led by repre- 45 stores were violating the law and about: having a good time while respect- sentatives of public bodies and youth selling beer to teenagers.
ing yourself, the people you are with, the organisations, journalists, well-known moments you share and the good memo- Kazakhstani athletes, pop stars and In the Carlsberg Group, we strive to ries you take with you. The campaign employees of Carlsberg Kazakhstan.
initiate various local collaborations continued at other events such as Green and nationwide campaigns to combat Concert, a collaboration between Tuborg The participants distributed stickers underage drinking. Beer Watch in and the Danish Muscular Dystrophy and information material in vend- Kazakhstan will continue to support Association; 185,000 people attended ing locations in cities all over the the long-term efforts of public stake- concerts across Denmark.
country to remind the owners of their holders to strengthen compliance responsibility to comply with the law with the law.
banning the sale of beer to individu-als under the age of 21.
We continuously work to build a safe working
environment for all our employees and contractors.
Every accident is one too many. We strive towards
zero accidents by instilling a culture of safety in each
and every one of our people.
The health and safety of the people who our Health & Safety Policy and guidelines During the last three years, we have achieved contribute to the growth and development become an integrated part of our production a 29.3% decrease in LTAR across the Carlsberg LOST-TIME ACCIDENTS
of the Carlsberg Group are absolutely vital to and logistics working environment.
Group and we are heading in the right direc- BY FUNCTION
us. Furthermore, a safe working environment tion with our efforts to improve safety. How- is part of our licence to operate. We have expanded our assurance scope and ever, we are striving to continually improve included selected logistics data in the scope our performance with a view to achieving our Despite our best efforts, accidents still hap- targets, not just for 2014 but also beyond.
pen. For every one of these, we make sure that we learn lessons and make improve- Furthermore, we have initiated the roll-out of Our target for 2013 was to decrease LTAR by ments because the only valuable benchmark health and safety activities in Sales & Market- 11% compared to 2012. With a 12% decrease, will always be zero accidents.
ing and Administration to cover the full scope equivalent to 326 lost-time accidents through- of functions across the Carlsberg Group.
out the Group, we achieved this target.
2013 – CONSOLIDATION AND BUILDING BEHAVIOUR LOST-TIME ACCIDENTS AND DAYS LOST LTAR in Production was 10.3%1, a reduction of During the last three years, we have focused The lost-time accident rate (LTAR, num- 10% compared to 2012, while DLR decreased primarily on our production sites and second- ber of lost-time accidents per 1,000 FTEs) by 7%. In absolute figures, there were 2,010 arily on our logistics operations as these measures occupational accidents resulting days lost in Production across the Group.
areas account for 86% of our accidents. in employees taking a minimum of one day Logistics
Sales & Marketing
off work. The days lost rate (DLR, number The progress was due to the fact that LTAR and Administration
In 2013, we consolidated our procedures and of days lost per 1,000 FTEs) measures the and DLR in Asia and Eastern Europe pro- operations to ensure that all requirements of severity of accidents.
gressed in line with or beyond expectations. Within KPMG's assurance scope.
In Western Europe, the first quarter of the A cornerstone of our health & safety strat- year was challenging. In response, efforts egy is training our leaders to become role were made to reinforce awareness and models in demonstrating visible engagement discipline among managers and employees, with health & safety. We have developed Baltika Samara Brewery A warehouse employee crossed into the active path deploying local programmes where neces- tools to support CSC leaders and keep them and was hit by a forklift sary. The rest of the year was aligned with committed to safety. Baltika Tula Brewery Road accident. A truck driver was hit by another truck or above expectations in this region.
Baltika Tyumen Office Road accident. A sales employee driving a car These tools include procedures and guidelines was hit by a truck In Logistics, DLR dropped by 19% from 2012. for what people should do when they visit sites Baltika Krasnoyarsk Brewery Road accident. A car driver was hit by another car In absolute numbers, there were 136 acci- such as breweries, warehouses and depots.
dents and 2,087 lost days in Logistics across the Group.
The accident in Samara in Russia reminded accidents. At Tula Brewery, the procedures for We regret to report that we lost four col- us that the safety of our employees is very road crossing were revisited and recommuni- Carlsberg Supply Company as a role leagues to work-related accidents in 2013. much dependent on the working culture and cated, and the relevant lanes were optimised model for safety The accidents in question were subjected to mindset that we must continue to implement for pedestrian crossing. With 86.2% of accidents occurring within our crisis management and investigation pro- to avoid breaches of our safety procedures. supply chain facilities, employees and lead- cedures and their circumstances shared across Baltika Breweries launched an online training ers have been given a prominent part to play the Carlsberg Group to help our sites identify The accidents in Tula, Tyumen and Kras- programme to raise awareness and improve in setting the necessary safety standards. any improvements required in their procedures.
noyarsk in Russia were unfortunate road skills among its drivers. Baltika will continue to roll out the programme during 2014.
SELF-AUDIT AND RISK ASSESSMENT HEALTH & SAFETY
In recent years, we have defined a set of safety priorities based on the findings of risk assess- 2013 achievements ments carried out in Group companies. In 2013, Target achieved we refrained from this practice to focus on 1 Continue to implement the overall strategy
in Production and Logistics across all regions LTAR: 10.9 (-35% vs 2010) LTAR: 10.31 (-38% vs 2010) con solidating the system to ensure sustainable DLR: 142 (-45% vs 2010) DLR: 1421 (-45% vs 2010) improvement and give the local markets an op- Safety risk assessments to be conducted in Target partially achieved portunity to overcome specific local challenges.
2 Reinforce a proactive approach
to health & safety at least 90% of workplaces (Production, Logistics, Western and Eastern Europe: target achieved Sales & Marketing and Administration) Asia: ongoing action to meet target Our cross-audits have significantly contributed 3 Develop cross-audits in all regions
All H&S coordinators to perform 1 yearly Target partially achieved to our overall health & safety progress over the Total Group: 73% (including 100% in Western Europe) past three years. We have succeeded in involv-ing more managers and employees in the im- 4 Ensure sites comply with Group Policy
3 Group mandatory requirements to be Target partially achieved implemented every year at at least 90% of sites Western and Eastern Europe: target achieved plementation of the health & safety priorities. Asia: ongoing action to meet target At least 50% of production sites across Target achieved In Western Europe, the cross-audits are 100% 5 Manage a coordinated approach to implement
OHSAS 18001 at Western and Eastern European sites Western Europe to be OHSAS 18001-certified 61% of Western European sites certified implemented, meaning that all health & safety coordinators have conducted at least one audit per year in another country since 2011. 1 Within KPMG's assurance scope.
In Asia, 32 audits were carried out across Chi-na and a programme of cross-audits between Lost-time accident
Days lost rate
Lost-time accident
Days lost rate
rate in Production
rate in Logistics
in Logistics
Per 1,000 employees Per 1,000 employees Per 1,000 employees Per 1,000 employees SVP, Group Supply Chain 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2013 countries has been established. However, im- also introduce this integrated multi-site certifi- plementation in Asia and Eastern Europe has cation process in Eastern Europe and Asia.
HEALTH & SAFETY
not met the expectation of at least one cross-audit per year per health & safety coordina- 2016 TARGETS – STRIVING TO JOIN tor due to turnover of coordinators, different THE BEST IN CLASS 1 Road to zero accidents
Group LTAR = 5.4 (-38%)2 levels of maturity and restricted budgets.
The Carlsberg Group improved its safety • Develop and implement new safety standards (chemical handling, electrical safety etc.) 5.7 in Production performance from 2010 to 2013 by 41.6%. • Implement a dedicated 3-year plan in Logistics 9.5 in Logistics By 2016, we are aiming to further reduce our • Roll out an internal safety communication Multi-site OHSAS 18001 certification has been accident rate by 38%. Our aim is to be one of • LTAR in Production: 7.8 achieved in 2013 for sites in France, Switzer- the best FMCG companies in class by 2020.
• LTAR in Logistics: 14.8 land, Italy and Russia. This has been an op- 2 Policies and standards
100% of Western and Eastern European portunity for us to establish and share com- In 2014, we will maintain and reinforce the - Implement the 2nd phase of the coordinated sites to be OSHAS 18001-certified mon standards for all supply chain sites. Our initiatives already in place. Among other certification roll-out 2013 target was to have at least 50% of our things, we will continue the certification - Certify 5 additional sites in Western Europe- Certify 1 pilot site in Ukraine Western European sites certified. We are proud process in Europe and also implement a new to say that we exceeded this target. A total of three-year logistics plan focusing on People 3 Leadership and organisation
100% of VPs and directors within Carlsberg Group - Roll out a training programme as part supply chain sites and facilities to be trained in 14 out of 23 production sites in Western Europe & Behaviour, Process & System, Perform- of the Carlsberg Supply Chain Academy Health & Safety Academy are now certified, corresponding to 61%.
ance Management & Reporting, Technical & - Conduct at least 3 training sessions Equipment and Contractors.
In 2014, we will continue the pursuit of an Integrated Management System that will A strong safety culture starts at the top. We centralise and standardise the ISO certifica- will train operational and functional managers tion process for the most important standards in health & safety excellence. Carlsberg Supply covering environment, health & safety, quality Company (CSC) will implement the training as 2 Versus 2013 performance. and food safety. In the coming years, we will part of the Carlsberg Supply Chain Academy.
Within KPMG's assurance scope.
Szczecin and Kasztelan breweries in Poland
recognised for safety improvements
At Carlsberg, we strive to instil a cul- The competition involves two stages: ture of safety in each and every one the regional heats, carried out in 16 of our people. In 2013, Szczecin Brew- provinces across the country, and a ery and Kasztelan Brewery, both part national final where all top-ranked of Carlsberg Polska, were recognised regional finalists compete to be the for their significant safety improve- national champion.
ments in a competition organised by the National Labour Authority.
Both breweries received a number one ranking as "Employer: Provider of The competition rewards companies Safe Work" in their respective regions.
that work proactively to improve safety and occupational hygiene above regulations and standards.
Aldaris sets new standards for termination processes
Our employees are our single most valuable 150 NEW VACANCIES PREPARING EMPLOYEES FOR NEW CAREERS resource and we aim to maintain high standards The main goal was to provide the affected With an average tenure of 20 years, it was also in respect of providing a fair workplace. In employees with employment opportunities important for Aldaris to prepare the employees September 2013, when our brewery in Aldaris, in other companies. A total of 150 equivalent for new careers outside the company. The Latvia, was undergoing restructuring and had vacancies were offered for the employees to employee support programme focused on to lay off 62 employees, the HR department choose the most suitable one.
developing employee skills and capabilities worked together with the local trade union to to help them become more competitive in the find new positions and make the process as Trade union leader Inga Ozola was satisfied with local job market.
Carlsberg Ukraine combats corruption
constructive as possible for the employees. the outcome: "Although it will be emotionally difficult to say goodbye to colleagues, it's now in their hands to choose what they'll do with the We want to be a trusted business Also, a new tool was developed to new job opportunities offered." partner and employer across the systematically handle third-party markets in which we operate.
screening. The Carlsberg Ukraine contract system now contains all To support this ambition and documentation relevant for the maintain ethical business conduct third-party screening, including and compliance with applicable law, questionnaires, forms, contracts and including anti-corruption regulation, anti-bribery clauses, and the system we have introduced a third-party ensures that contracts can be down- screening procedure designed to en- loaded only if the third-party screen- sure that the third parties with which ing steps have been carried out.
we engage do not pose a corruption risk to our business and employees.
In this way, Carlsberg Ukraine has ensured that the third-party During 2013, Carlsberg Ukraine screening procedure is followed in completed the implementation of the an efficient manner for all contracts third-party screening procedure. With entered into by Carlsberg Ukraine.
the support of the Supervisory Board, the legal department completed 11 training sessions in the procedure in-volving a total of 123 key employees.
Number of training sessions held on business ethics Total number of employees trained in the Business Ethics Policy Percentage of companies with mechanisms in place to avoid business ethics incidents 1 32 out of 38 companies. 2 33 out of 40 companies. 3 35 out of 40 companies.
Corruption brings additional costs and is a barrier to economic
Furthermore, compliance with the Business We have translated the e-learning into three Ethics Policy is part of all employment con- additional key languages (Mandarin Chinese, growth, both for the Carlsberg Group and for the societies
tracts in headquarters and has been incorpo- Vietnamese and Russian), which means the in which we operate. Our Business Ethics Policy gives clear
rated into employment contracts in approxi- e-learning is now available in eight lan- guidance to all employees and external parties on our position
mately two thirds of local markets. However, guages (the others being English, French, on corruption and other ethical concerns. Through awareness
according to an internal audit report con- German, Polish and Finnish), with Swedish ducted in 2013, there are still improvements planned for Q1 2014.
and training, we want to build a strong ethical and anti-
to be made on this point. Integration of corruption culture across the Carlsberg Group.
the Business Ethics Policy in employment Through our network of in-house legal coun- contracts must reach higher implementation sels, we have conducted a total of 184 training levels, and we will pay special attention to sessions across 29 companies. The network this area going forward.
also coordinates activities, shares best prac- Fighting corruption is an important part of the tices across the Group and increases the level Carlsberg Business Ethics Policy. The policy We want all employees to understand how of awareness in our local market companies.
and guidelines, e-learning programme, live to respond to and resolve any ethical dilem- training, third-party screening procedure and mas they come across. various toolkits are designed to provide clear guidance for our employees on how to re- We aim to empower our people, through edu- solve not only corruption issues but also other cation and training, to make the right decisions, business ethics concerns such as conflicts of and we monitor the measures that our compa- interest, misuse of company assets, wrongful nies have in place to avoid policy breaches.
donations and breaches of confidentiality.
Training has been a focal point in our imple- 2013 – ENGAGEMENT, INTEGRATION, mentation measures, not only in 2013 but TRAINING AND DUE DILIGENCE throughout the three-year target period that We believe top management engagement is a has now come to an end. All key employees cornerstone for achieving high performance in must undergo biennial training. and compliance with ethical standards. This is why we have integrated the Business Ethics In 2013, 3,765 employees were trained Policy into our Leadership Competencies through our e-learning system. The e-learning Programme. Business ethics is now part of the gives employees a thorough knowledge of Carlsberg performance measurement system for the policy and guidelines, and all participants all line managers within the Carlsberg Group. must pass an exam to complete the training. General Counsel, VP, Group Legal & Risk Management 88% of all Carlsberg Group companies now In moving towards zero tolerance, it is cru- ensuring high levels of compliance with busi- have appropriate measures in place to avoid cial for us to help our employees tackle and ness ethics. The roll-out of the compliance business ethics incidents. Another important refuse requests for facilitation payments. management system will commence in 2014. step up in integrating business ethics in our On this basis, our training in 2014 will in- business is that 60% of Group companies clude clear guidance to employees on what To support the new compliance manage- have implemented our third-party screening to do when confronted with a facilitation ment system and strengthen the imple- mentation of the Business Ethics Policy in general, we have increased our compliance resources, including a new lawyer in Carls- FACILITATION PAYMENTS MANAGEMENT SYSTEM berg China headquarters with business ethics Facilitation payments are a risk in some During 2013, we tested a new compliance as a dedicated task. parts of our operating markets. We have management system with the aim of facilitat- been continuously striving to eliminate ing a more efficient and systematic approach WHISTLEBLOWER SYSTEM facilitation payments in Carlsberg, and in to managing, tracking and monitoring business Our whistleblower system enables employ- General Counsel, VP, Group Legal & Risk Management 2013 we decided to move to a policy of zero ethics activities across the Carlsberg Group. ees to report breaches of internal policies tolerance of facilitation payments in 2014. and guidelines or criminal conduct. The We want to send a strong, clear signal to all According to the above-mentioned internal system is managed by an independent third our employees and partners that corruption, audit report of 2013, improving our ability party to provide employees with a high level including facilitation payments, should never to track and monitor implementation and of confidentiality and security. Once a report be part of the way we do business. performance will be a key precondition for has been submitted, it is handled by special-ly trained and designated employees within Carlsberg Group Internal Audit. In 2013, 26 reports were submitted and investigated by Internal Audit. None of the reports submitted 2013 achievements had material impact on the financial results Target partially achieved of the Carlsberg Group or on the local com- 1 Roll out e-learning in more Group languages
100% of key employees to be trained in business ethics 89% of key employees trained.
pany in question.
E-learning programme available in Chinese, English, Finnish, French, German, Polish, Russian and Vietnamese. Swedish to be launched at the 2016 – BUSINESS ETHICS PART OF beginning of 2014 THE CULTURE AND DECISION-MAKING Business Ethics Policy to be communicated Target partially achieved Our 2016 targets reflect our ambition to firm- 2 Continue awareness and training
– focus on high-risk areas 93% of companies have communicated the Policy ly root the Carlsberg Group Business Ethics Introduction of audit and self-audit in selected Target achieved Policy in our culture and place it at the heart 3 Prepare and design process for audit
Compliance management system now includes of all business decision-making. The targets audit and self-audit functionalities form part of our continuous efforts to ensure Relevant key employees and top management Target achieved compliance with the Business Ethics Policy 4 Incorporate business ethics compliance into
Carlsberg's performance measurement system to be measured regarding business ethics Business ethics compliance now part of the Lead- throughout the Carlsberg Group.
ership Competences Programme and training On this basis, we will pay special atten-tion to further integrating the principles of the Policy into our business practices and relations. The first step in fighting corruption is to identify where we face a risk. The third- The most important update to the policy will party screening and due diligence target be our move to zero tolerance of facilitation aims to ensure that the business relations and transactions we enter into are analysed for corruption risk and that these risks are Furthermore, the roll-out of the compliance properly mitigated.
management system will enable us to improve efficiency and compliance documentation.
Training will continue to be an essential implementation tool. We aim to provide all relevant employees with sufficient aware-ness and the necessary knowledge to ensure that we develop and grow our business in an ethically responsible way.
In 2014, we will continue our focus on training key employees and ensuring that the updated policy and guidelines are communicated to employees in a language they understand. 1 Implementation and compliance
Zero incidents of material non-compliance • Communicate updated policy to all employees with the Business Ethics Policy in a language that at least 90% understand, with emphasis on zero tolerance of facilitation Third-party screening and due diligence to become payments part of our business decision-making, including • Optimise efficiency and documentation of mergers & acquisitions compliance work by implementing the legal compliance management system Updated policy to be communicated to all employees in a language they understand 100% of key employees to be trained in updated Continue training with greater focus on e-learning policy as part of regular biennial training We want all employees to
understand how to respond
to and resolve any ethical
dilemmas they come across.
ULRIK ANDERSENGeneral Counsel, VP, Group Legal & Risk Management LABOUR AND HUMAN RIGHTS (LHR)
2013 achievements 1 Introduce employee engage-
Employee engagement to Target achieved ment as a KPI for local CEOs be introduced as a KPI for and country management team 2 Conduct LHR audits in 5 selected Audits in 5 selected countries
Target achieved Our employees are our single most valuable resource
and remain a strategic lever for the Carlsberg Group.
3 Build e-learning module
Specific module to be developed Target achieved for LHR for use in induction training Globally implemented labour and human rights are the
and management development foundation for our employees to develop their potential
4 Expand toolbox for LHR
All people managers to be au- Target achieved and contribute to the growth of our business.
tomatically trained in LHR when An internal website has been hired/appointed as new people established for the entire HR com- munity, making it easy to maintain and distribute relevant information, such as reports and best practices shared by the companies Our Labour and Human Rights Policy is based valued. Going forward, we will broaden our the Engagement Index alongside financial competences is Passion and Integrity, which on international conventions such as the Unit- approach to continuously ensure adherence measures to illustrate the organisational embraces both our Business Ethics Policy ed Nations Universal Declaration of Human to the UN Guiding Principles on Business and health of the business. Engagement contin- and our Labour and Human Rights Policy.
Rights and the International Labour Organisa- ues to be an integrated part of the Group tion's Declaration on Fundamental Principles and Rights at Work. Based on these, our 2013 – INCREASING EMPLOYEE We wish to proactively drive gender diversity policy provides equal minimum standards for ENGAGEMENT AND TRAINING The policy has been communicated to all in top management. We believe it benefits all employees across the Carlsberg Group. Overall implementation and training have employees at our majority-owned produc- our working environment and our ability to progressed as planned. Data disclosed in this tion sites in a language they understand. develop and grow. In our global recruitment We acknowledge that continuous efforts are report reflects that we have made good im- The implementation status reached 95%, an policy, we state that our employee compo- required to effectively implement our policy plementation progress and taken important increase on previous years. Also, we conduct- sition should reflect the different societies and guidelines in all our operating countries steps to build up the foundation of a Labour ed training for managers with direct reports in which we operate. We have signed the as we continue to grow and acquire major- and Human Rights Policy fully anchored in in 85% of our companies. This is an increase equality charter stating that we will work to ity ownership of more breweries. In line with the organisation. of 10% on 2012. Furthermore, the policy was leverage equality and increase the number this, we continue our efforts to ensure pro- integrated into local onboarding programmes of females in management positions. gress on policy implementation and aware- A target for 2013 was to introduce employee in 100% of all companies, maintaining the ness across the Carlsberg Group. engagement as a key performance indicator stable and high integration level from 2012.
So far, our numbers are in line with our (KPI) for local CEOs and country manage- industry peers. However, we have set a This effort reflects our commitment to provide ment team members. As a result, "People" is LEADERSHIP COMPETENCE INTEGRATION specific diversity target of 40% females on a productive, supportive working environment now part of KPI measurements for our top We have defined eight leadership compe- our Supervisory Board by 2015. The figure is where our employees feel empowered and leaders. A number of companies also use tences for Carlsberg managers. One of these currently 21%. In general, the composition of eflects the requirements for CSR reporting under section Labour and human rights 99a of the Danish Financial Statements Act, with specific focus on human rights.
strike was ruled to be illegal by the compe- LABOUR AND HUMAN RIGHTS
tent court as Carlsberg Danmark does not and cannot legally require employees to join specific unions.
1 Talent management
Anchor integrity in the organisation • Roll out Leadership Competence Framework for as one of the leadership competences 2016 – DIVERSITY AND LEADERSHIP top and upper-middle management level across The Carlsberg Group was founded on very strong ethical values by our founding father, • Define at least 2 initiatives that contribute to Increase gender diversity in top and middle achieving a higher degree of gender diversity management across the Group J.C. Jacobsen. We strive to keep these values in management positions across regions and alive as a vibrant part of the way we conduct business and cooperate with our employees.
Integrate policy into Employer Branding CLAUDIA SCLOSSBERGER 2 Employer branding
Introduce commitment to the Labour and Human and implement it across the Group Integrity as a leadership competence is Rights Policy into Carlsberg Group Employer Brand at Group level and in selected countries about leaders living the Carlsberg spirit, hav-ing a strong sense of responsibility towards 3 Policy and guidelines
Understand and demonstrate continuous due • Review the LHR Policy with reference to the diligence in accordance with the UN Guiding the company, the employees, society and UN Guiding Principles on Business and Human Principles on Business and Human Rights the environment, and being guided by strong ethical values. It is closely linked with one • Conduct a UNGP gap analysis on the LHR Policy and guidelines of our core values: We are engaged with society. By 2016 at the latest, all leaders at Roll out LHR Policy e-learning to HR and line Introduce new e-learning module on LHR for managers across the Group and as a pilot for Carlsberg will have the leadership compe- Group HR and line managers in 2 countries other target groups tences to guide them on how to lead, includ-ing with an explicit focus on integrity.
Diversity is essential if we want to continue Also, the leadership competences will be- to develop and grow as a global business. come the yardstick for qualitative aspects our workforce is 74% male and 26% female. As always, the results form the basis of dis- Through to 2016, we will focus on imple- of performance for all leaders.
These figures have been relatively stable in cussions across the Group, and improvement menting measures that particularly help recent years. The turnover rate increased to measures are put in place, including in areas female employees to develop into leadership NEW E-LEARNING MODULE 15% from 14.0% in 2012. In terms of gender, where we are not meeting expectations.
roles and/or grow into more senior manage- A new e-learning module will be piloted in turnover for females was 30%, an increase ment positions.
selected countries. Our aim is to quickly and of 1% on 2012, while turnover for males was As in 2012, we conducted audits in selected effectively reach out to more employees 70%, a decrease of 1%, on 2012.
countries in all our regions to further build up Finally, we will work to ensure that we do across the Group in the future.
understanding of implementation issues, track not contribute to human rights violations. AUDITS AND SURVEYS local compliance and identify best practices.
Our aim is to understand and demonstrate During the development of our new three- In 2013, more than 30,000 employees were due diligence in accordance with the UN year targets, we decided to conduct a thor- invited to complete the survey on working guiding principles.
ough review of the existing policy in 2014. conditions and satisfaction. 88% participat- During August 2013, there was a strike at ed. The results show continued high engage- Carlsberg Danmark involving 130 workers. In 2014, we will introduce gender diversity Part of this review will include an internal ment scores as well as pride in working for A newly employed worker was not a mem- as part of career plans and promotions gap analysis of our present policy against the Carlsberg Group. ber of the 3F union, and consequently his and establish a network of female executives the UN Guiding Principles on Business and co-workers refused to work with him. The to exchange experiences. Human Rights.
Our My Voice results continue to show
positive results with high employee
participation and engagement scores.
MY VOICE RESULTS
1 The engagement score dropped in 2013 due to significant redesign of the engagement survey (changes in both questions and scale). Most of our scores are strong compared to norms.
EMPLOYEE ENGAGEMENTEach year, our employees make great efforts to integrate our CSR policies and initiatives into their local communities. In 2013, 7,432 employees across the Group volunteered in 1,599 various local community activities. To-gether, they invested more than 23,000 hours. Among the activities were the Sinebrychoff Park Rangers and the Seven Rivers clean-up With engagement come empowerment and the ability to
projects, introduced at Olivaria Brewery influence and make a difference. In the Carlsberg Group, we
in Belarus and Carlsberg Kazakhstan for the SVP, Group Corporate Affairs want to empower our people and the communities in which
first time as a result of continuous activities we operate. This enables us to develop and grow in close
in Baltika, Russia, during the previous years.
cooperation with our employees and society at large.
GLOBAL PARTNERSHIPEntering into partnerships with international future growth. A continuous dialogue with the stakeholders, such as NGOs and other social people and communities in the areas in which organisations, enables us to maximise syner- we operate enables us to develop our business gy from joint efforts. Furthermore, we receive according to the influence that we achieve.
valuable feedback and insights that allow us to continuously improve our strategy and ap- We aim to build a strong foundation of em- Our founding father, J.C. Jacobsen, built his engage in voluntary and non-commercial proach. Following the commitment between ployee engagement because our employees company on the passionate and dedicated activities. We have done this because we the Carlsberg Group and Baltika Breweries in are our best and most qualified ambassadors. belief that the prosperity of Carlsberg was want to link community engagement more Russia and UNIDO in 2012, Baltika Breweries Our targets reflect our ambition to focus our conditional on engaging with and giving back closely with our business. This has resulted has started implementing the initiative Make efforts where we have the most significant, to society. Today, we keep this legacy alive in a sharpened focus on two of our key CSR the Difference for Your City. This is a pilot positive impact on the environment and soci- through hundreds of local community en- initiatives: responsible drinking and sustain- project designed to identify the best system ety. The engagement of our employees will gagement activities across the markets where able packaging.
for returnable glass bottle collection.
be a cornerstone in instigating and achieving we operate majority-owned companies. these targets.
In 2013, our majority-owned companies in- Furthermore, the Danish government, repre- 2013 – COMMUNITY ENGAGEMENT vested DKK 47m within their local communi- sented by the Minister for the Environment, While we continue to acknowledge that dif- CLOSER TO BUSINESS ties. This included in-kind donations, such as signed a Declaration of Intent to support ferent opportunities and challenges may take Over the past 12 months, we have developed free products to support charity events, direct resource-efficient and cleaner production as priority in our local companies, we encourage and implemented a tool to systematise financial contributions and cause-related well as sustainable natural resource man- implementation of projects that reflect key and prioritise our community engagement marketing activities. agement in Russia under the Carlsberg/ Group initiatives, namely sustainable pack- activities and enable the Group companies to UNIDO partnership.
aging, responsible drinking and employee better integrate activities into their business In 2013, we invested in 34 cause-related engagement. We will develop and introduce plans and evaluate the outcome and busi- partnerships, engaging with a number of civil 2016 – BUILDING A COMMUNITY an educational programme to prevent under- ness benefits of the selected activities. Also, organisations to support a shared cause. One ENGAGEMENT CULTURE age drinking and encourage Group companies a Community Engagement Guidebook has example is Carlsberg Deutschland's support Being a global business in an ever-changing to roll out recycling programmes. been developed to provide the foundation of local flora and fauna with the Nature and global environment makes community en- of a common set of principles on which we Biodiversity Conservation Union.
gagement, whether local or global, vital for Community engagement 2013 achievements 1 Develop a community engage- All our companies to have a
Target achieved ment guidebook and impact system in place to strategically Community engagement inte- prioritise potential community grated into Group procedures activities and evaluate outcomes of business plans Actively involve Carlsberg Group 7,432 employees spent 23,162 employees in global community hours on volunteering activities 2 Advance community activities 2 global partnerships to be
Target partially achieved together with global NGOs developed to advance community Activities under the partnership activities at local level between UNIDO and Carlsberg Group/Baltika Breweries ongoing A 2nd partnership postponed due to budget restrictions 1 Sustainable packaging
Implement sustainable packaging/recycling projects Introduce sustainable packaging/recycling in at least 75% of all countries with active involve- initiatives in at least 3 markets ment of employees 2 Responsible drinking
Reach at least 1 million young people through local Develop and approve educational campaign for education campaigns addressing underage drinking implementation in selected markets in 2015-2016 3 Employee engagement
100,000 hours of volunteer activities to be spent Improve engagement score through employee by employees of the Carlsberg Group annually Scores should reach 40,000 hours of employee volunteering activities We aim to build a strong
Implement policies and guidelines 100% in Group foundation of employee
4 Compliance and implementation
Strengthen implementation of policy and guidelines. Assist local companies in roll-out engagement because our
employees are our best and
most qualified ambassadors.
SVP, Group Corporate Affairs DISTRIBUTION OF COMMUNITY INVESTMENT ACTIVITIES
Education
Environment
and culture
Our employees make great efforts to
Responsible
integrate our CSR policies and initiatives
into their local communities. In 2013, 7,432
Support of vul-
Health and care
employees across the Group volunteered
nerable groups
in 1,599 various local community activities.
Natural disaster
COMMUNITY INVESTMENT AND VOLUNTEERING ACTIVITIES
COMMUNITY INVESTMENT ACTIVITIES AND ENGAGEMENT
Hours spent on community
Number of volunteering
Total number of employees
Total number of
Community
activities
who participated in
community investment
engagement
volunteering activities
Total cash and
in-kind donations
Number of cause-related
marketing partnerships
Data restated for total cash and in-kind donations due to errors in previously reported data.
Carlsberg Malawi joins ShareHope initiative
Carlsberg Malawi has entered into the Carlsberg Malawi is contributing to the ShareHope initiative, a multi-stake- project as a bottling partner. Besides holder partnership to address health Carlsberg Malawi, the partnership con- issues in Africa. The goal is to contrib- sists of The Coca-Cola Africa System, ute to improved health service delivery the charitable organisation MedShare by donating medicine and equipment International, CitiHope International to Malawi's major hospitals.
and the Malawi government.
In 2013, three 40-foot containers of ShareHope has received notable medical equipment worth almost USD commendation from Malawi's 1m, together with USD 4.4m in essen- President, Mrs Joyce Banda, as tial medicines, were donated to Queen an example of successful private- Elizabeth Central Hospital, the largest public partnership.
central hospital in Malawi, serving over half a million patients annually.
Lao Brewery helps to educate
future generations
In 2007, Lao Brewery made a long-term commitment to help improve the education in Laos and increase access to it. Education is the backbone of a prosperous society as well as the foundation for building a busi-ness. During 2013, the brewery distributed education materials to underprivileged students in districts of the Savannaket and Every can counts to Carlsberg UK
Khammuan provinces.
Mr Oudone Singsouvong, Deputy Manag- During the summer of 2013, Carlsberg Carlsberg UK is the first UK brewer ing Director of Lao Brewery, says: "We UK became partners in the national to invest in this national aluminium hope to encourage and motivate children recycling campaign Every Can Counts. packaging recycling campaign, which to contribute to the future of Laos." Together with its partner, Alupro, it encourages on-the-go recycling at targeted over 600,000 people to encour- outdoor events across the UK.
Lao Brewery cooperates with the Ministry age recycling at six major UK festivals.
of Education and Sports to help the The campaign is led by Alupro, the government achieve the UN Millennium Head of CSR at Carlsberg UK, Matt Aluminium Packaging Recycling Development Goals.
Winterburn, says: Organisation. Carlsberg UK is one of the campaign's main funding partners. LONG-TERM EFFORT TO "We aim to demonstrate leadership in The partnership marks Carlsberg UK's STRENGTHEN EDUCATION social responsibility and this partner- commitment to increase the recovery Every year, Lao Brewery donates LAK 300m ship further underlines our commit- and recycling of its aluminium cans (approx. USD 37,000) to the project, which ment to being engaged with society. across the brand portfolio.
will run until 2016.
We hope to engage with customers, suppliers and consumers on a variety Watch the Every Can Counts In so doing, Lao Brewery is helping to of sustainability initiatives besides the educate children and further strengthen Every Can Counts campaign." the development of Laos.
GENERAL PRODUCTION FIGURES RELATIVE FIGURES FOR BEER AND SOFT DRINK PRODUCTION Number of reporting sites Thermal energy (kWh/hl)1 Beer production (million hl) Electricity (kWh/hl)1 Soft drink production (million hl) Combined energy (thermal and electricity) (kWh/hl)1 Beer and soft drink production (million hl)1 CO2 emissions (kg CO2/hl)1 Malting (ktonnes) ENVIRONMENTAL PERFORMANCE DATA (BEER, SOFT DRINK AND MALT PRODUCTION) RELATIVE FIGURES FOR MALT PRODUCTION Total thermal energy (GWh)1 Thermal energy (kWh/tonne) Total electricity (GWh)1 Electricity (kWh/tonne) Total CO2 emissions (ktonnes)1 Combined energy (thermal and electricity) (kWh/tonne) Total SO2 emissions (tonnes) CO2 emissions (tonnes CO2/tonne) Total NOx emissions (tonnes) Water (m³/tonne) Total water consumption (million m³)1 Total wastewater discharged (million m³) Total organic load (COD) before treatment (ktonnes) Number of sites that are ISO 14001-certified Incinerated (ktonnes) WATER SOURCE SPLIT  To sanitary landfill (ktonnes) Special waste (ktonnes) Recycled (ktonnes) Disposed of for land applications (ktonnes) Total solid waste (ktonnes) Brewer's grains and brewer's yeast (ktonnes) Section 1: Data summary table ENVIRONMENTAL DATA – CONTINUED
HEALTH & SAFETY
WASTEWATER DESTINATION FIGURES FOR PRODUCTION Public sewer with WWT Number of lost-time accidents Public sewer without WWT Lost-time accident rate On-site treatment, followed by discharge to river/lake Number of lost days THERMAL ENERGY MIX FIGURES FOR LOGISTICS Number of lost-time accidents Lost-time accident rate Number of lost days FIGURES FOR THE GROUP Number of lost-time accidents Lost-time accident rate CO2 EMISSIONS FROM REFRIGERANTS Number of lost days HFC-based refrigerants (ktonnes CO2)1 SUSTAINABLE PACKAGING LOST-TIME ACCIDENTS BY FUNCTION Percentage of companies carrying out sustainable packaging Percentage in Production Percentage in Logistics Percentage in Sales & Marketing and Administration Total cash and in-kind donations (DKKm) Percentage of companies implementing responsible drinking initiatives Number of cause-related marketing partnerships Percentage of fermented produced volume with health warnings Percentage of companies investing in community engagement initiatives Number of community engagement activities DISTRIBUTION OF ACTIVITIES Number of training sessions held on the Business Ethics Policy Responsible drinking Total number of employees trained in the Business Ethics Policy Education and culture Percentage of companies with mechanisms in place to avoid business ethics incidents Support of vulnerable groups Number of markets that held business ethics training sessions Natural disaster relief Percentage of companies that have implemented third-party screening procedures Number of employees involved in community engagement activities Number of hours spent LABOUR AND HUMAN RIGHTS
Percentage of companies with a procedure in place to track PERCENTAGE OF EMPLOYEES BY EMPLOYMENT CONTRACT consumer complaints Number of permanent employees Number of reported incidents of non-compliance with Marketing Number of temporary employees Communication Policy Number of sales, marketing and innovation employees trained PERCENTAGE OF EMPLOYEES BY EMPLOYMENT TYPE through the marketing communication e-learning tool LABOUR AND HUMAN RIGHTS – CONTINUED
PERCENTAGE OF EMPLOYEES BY EMPLOYMENT CATEGORY22 EMPLOYEE TURNOVER PERCENTAGE BY GENDER21 Total presidents and top managers Total specialists HOURS OF TRAINING Average for the Group PERCENTAGE OF EMPLOYEES BY GENDER22 COLLECTIVE BARGAINING Percentage of employees covered by collective bargaining agreements PERCENTAGE OF MANAGEMENT LEVEL BY GENDER POLICY IMPLEMENTATION STATUS Percentage of labour and human rights procedures and processes implemented as average for the Group PERCENTAGE OF EMPLOYEES BY AGE Number of integrated quality audits 1 Within KPMG's assurance scope (see KPMG's assurance report).
13 29 out of 37 companies.
EMPLOYEE TURNOVER 2 emissions restated due to changes in methodology.
24 out of 35 companies.
Employee turnover percentage 3 Data not reported in previous years. 15 33% of the activities were industry initiatives and 4 44% of the activities were industry initiatives and 66% 67% were carried out by Group companies.
were carried out by Group companies.
16 28 out of 38 companies.
EMPLOYEE TURNOVER PERCENTAGE BY AGE 5 Data restated due to errors in reported data.
17 32 out of 38 companies.
6 28 out of 36 companies.
18 33 out of 40 companies.
7 32 out of 37 companies.
19 35 our of 40 companies.
8 34 out of 40 companies.
20 14 out of 40 companies.
9 34 out of 36 companies.
21 24 out of 40 companies.
10 37 out of 38 companies.
22 2013 data not including 430 part-time sales promoters 11 38 out of 39 companies.
in Laos due to non-available data.
12 28 out of 35 companies.
TO THE READERS OF THE 2013 We do not provide any assurance on the professional competences needed to provide tors submitted by all production sites for achievability of Carlsberg's objectives, targets assurance on sustainability information, and consolidation at corporate level. We were engaged by the Executive Board of and expectations.
that they comply with the requirements of • Evaluating internal and external documen- Carlsberg A/S ("Carlsberg") to aprovide assur- the Code of Ethics for Professional Account- tation, based on sampling, to determine ance on selected information in the Carlsberg Procedures performed to obtain a limited ants of the International Federation of Ac- whether the selected information is sup- Group Corporate Social Responsibility Report level of assurance are aimed at determining countants to ensure their independence. ported by sufficient evidence.
2013 ("the Report"). The Executive Board is the plausibility of information and are less • An analytical review of the selected tax responsible for the preparation of the Report, extensive than those to obtain a reasonable information for the individual consolidated including the identification of material issues. level of assurance.
Our procedures included the following: Our responsibility is to issue an assurance re- • A risk analysis, including a media search, to • Reconciliation of selected tax information port based on the engagement outlined below.
REPORTING CRITERIA AND identify relevant environmental and safety is- with the audited consolidated financial ASSURANCE STANDARD sues for Carlsberg during the reporting period.
statements of Carlsberg A/S.
For the information covered by our engage- • Reviewing the suitability of the reporting Our engagement was designed to obtain lim- ment scope Carlsberg applies criteria as ited assurance on whether the following infor- detailed in sections 4 to 6. It is important to • Evaluating the design and implementa- Based on the procedures performed, as mation is presented, in all material respects, view the assured information in the context tion of the systems and processes for the described above, nothing came to our atten- in accordance with the reporting criteria: of these criteria. We believe that these cri- collection, processing and control of the tion to indicate that the selected information • In the "Environment" section, the introduc- teria are suitable in view of the purpose of selected information. is not presented, in all material respects, in tion, "Energy and emissions", "CO2 emis- our assurance engagement.
• Interviews with the relevant staff at corp­ accordance with the reporting criteria. sions", "Water" and "HFCs" (pages orate level responsible for collecting, con- We conducted our engagement in accordance solidating and carrying out internal control • In the "Health & Safety" section, the fol- with the International Standard for Assur- procedures on the selected information.
lowing 2013 indicators: lost-time accident ance Engagements (ISAE) 3000: Assurance • Visits to three production sites in Laos, rate (LTAR) and days lost rate (DLR) in Engagements other than Audits or Reviews Russia and Finland to review the environ- 26 February 2014 Production and Logis of Historical Financial Information, issued mental and safety data and the design KPMG Sustainability part KPMG Statsautoriseret of KPMG Advisory N.V.
• In the "Economic value generated" section, by the International Auditing and Assurance and implementation of validation proce- the following information for 2013: taxes Standards Board. This Standard requires, dures at local level.
borne incl. excise duties, corporate tax paid among other things, that the assurance team • An analytical review of the data for the Henrik Kronborg Iversen State Authorised Public and excise duty paid (pages ). possess the specific knowledge, skills and selected environmental and safety indica- Section 2: Independent assurance report The Carlsberg Group utilises the Global the criteria for Application Level C+. KPMG to develop the maturity of our reporting Reporting Initiative (GRI) G3 framework to provided assurance on selected economic, Given that our products are made from systems and procedures so we can improve produce an overview of our CSR progress. environmental and safety indicators based natural resources, the sustainability of the the level of disaggregation in the future.
The framework provides organisations with on the International Standard for Assurance environment is vital to our business. In total, principles and indicators to measure and Engagements (ISAE) 3000. we report on 27 indicators (13 of which are If you have any comments or questions report their economic, environmental and related to the environment), which is signifi- about our GRI reporting, please contact: social performance.
To increase the transparency and compre- cantly above the required 10 profile indica- hensibility of the table, we indicate whether tors for level C. In order to simplify the table, The following GRI table details how our CSR our level of disclosure covers the GRI require- we have included only the indicators for progress data from 2013 is aligned with the ments fully or partially. In addition, every which we provide either full or partial data. GRI G3 guidelines ().
profile or performance indicator we apply is linked to a specific section of either our The GRI G3 guidelines encourage disag- This is our fifth year reporting in accordance Annual Report (AR), our company website gregation of information where feasible, but with the GRI. Following our self-assessment, acknowledge that the level of disaggrega- we declare our reporting to be consistent with section on our company website tion may vary by indicator. We will continue GRI PROFILE & PERFORMANCE
CSR REPORT 2013 (CSR)
OTHER LOCATION
INDICATORS
ANNUAL REPORT 2013 (AR)
STRATEGY AND ANALYSIS ORGANISATIONAL PROFILE Name of the organisation Primary brands, products, and/or services Carlsberg Group brand select Section 3: Global Reporting Initiative table GRI PROFILE & PERFORMANCE
CSR REPORT 2013 (CSR)
OTHER LOCATION
INDICATORS
ANNUAL REPORT 2013 (AR)
Operational structure of the organisation AR:41 - Executive Board 49 - Executive Committee 162-163 - Supervisory Board Location of organisation's headquarters Number of countries where the organisation operates Nature of ownership and legal form SCALE OF THE REPORTING ORGANISATION Number of employees Total capitalisation broken down in terms of debt and equity Quantity of products or services provided Significant changes during the reporting period regarding size, structure, or ownership Awards received in the reporting period • Carlsberg UK recognised for sustainability excellence Szczecin and Kasztelan breweries in • Carlsberg UK receives Green Apple Gold Award Poland recognised for safety improvements • Carlsberg Polska: "Appearances can be deceptive"• Carlsberg UK scoops "Heart of the Community Award"Read the stories on REPORT PARAMETERS The report covers the 2013 calendar year Date of most recent previous report CSR Report 2013 published on 26 February 2014 The reporting cycle is annual Contact point for questions regarding the report or its contents GRI PROFILE & PERFORMANCE
CSR REPORT 2013 (CSR)
OTHER LOCATION
INDICATORS
ANNUAL REPORT 2013 (AR)
REPORT SCOPE AND BOUNDARY Process for defining report content Boundary of the report State any specific limitations on the scope or boundary Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations Explanation of the effect of any re-statements of information O2 emissions restated due to changes in methodology provided in earlier reports, and the reasons for such re-statement otal cash and in-kind donations restated due to errors in previously reported data Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report GRI CONTENT INDEX Table identifying the location of the Standard Disclosures The information contained in this GRI table in the report. [.] Policy and current practice with regard to seeking external assurance for the report GOVERNANCE, COMMITMENTS, AND ENGAGEMENT Governance structure of the organisation AR:41: Executive Board49: Executive Committee162-163: Supervisory Board Indicate whether the Chair of the highest governance body No, the Chairman of the Supervisory Board is not an executive officer is also an executive officer For organisations that have a unitary board structure, state The Supervisory Board is made up of 14 members, none of whom are involved in the number of members of the highest governance body that operative mangagement are independent and/or non-executive members GRI PROFILE & PERFORMANCE
CSR REPORT 2013 (CSR)
OTHER LOCATION
INDICATORS
ANNUAL REPORT 2013 (AR)
Mechanisms for shareholders and employees to provide recom- mendations or direction to the highest governance body List of stakeholder groups engaged by the organisation CSR:UNIDO partnership, Water Benefits Partners adle-to-Cradle® design framework AIM-Progress Global Actions: Commitment to reduce the harmful use of alcohol, European Beer Pledge, WFA Responsible Marketing Pact Basis for identification and selection of stakeholders Community Engagement Policy with whom to engage PERFORMANCE INDICATORS Direct economic value generated and distributed AR: 52-53: Financial review124-126: Retirement benefit obligations and similar obligations113-114: Corporation tax Financial implications and other risks and opportunities for the organisation's activities due to climate change Direct energy consumption by primary energy source Indirect energy consumption by primary source Energy saved due to conservation and efficiency improvements Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these intiatives GRI PROFILE & PERFORMANCE
CSR REPORT 2013 (CSR)
OTHER LOCATION
INDICATORS
ANNUAL REPORT 2013 (AR)
Initiatives to reduce indirect energy consumption and reductions achieved Total water withdrawal by source EN16 Total direct and indirect GHG emissions by weight EN18 Initiatives to reduce GHG emissions and reductions achieved EN20 NOx, SOx and other significant air emissions by type and weight EN21 Total water discharge by quality and destination EN22 Total weight of waste by type and disposal method EN26 Initiatives to mitigate environmental impacts of products Find more case stories from 2013 online at and services, and extent of impact mitigation Case stories: , Sections: EN27 Percentage of products sold and their packaging materials that are reclaimed by category LABOUR PRACTICES AND DECENT WORK Total workforce by employment type, employment contract, and region (Core) Total number and rate of employee turnover by age group, gender, and region (Core) Percentage of employees covered by collective bargaining agreements Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region LA10 Average hours of training per year per employee by employee GRI PROFILE & PERFORMANCE
CSR REPORT 2013 (CSR)
OTHER LOCATION
INDICATORS
ANNUAL REPORT 2013 (AR)
Nature, scope, and effectiveness of any programs and practices Community Engagement Policy that assess and manage the impacts of operations on communi- ties, including entering, operating, and exiting Actions taken in response to incidents of corruption Public policy positions and participation in public policy Carlsberg is active in the political debate related to the regulatory environment for beer development and lobbying and soft drinks etc. We engage directly and indirectly in dialogues with authorities and other stakeholders at national, regional and international level. At national level, we are active through our membership of brewers' associations, trade associations etc. We also engage regionally through The Brewers of Euris the voice of the European brewing sector and a platform for dialogue with the EU in-stitutions. We have registered our corporate interests in the EU lobby register. At global level, we have signed the Global Action: Commitment to reduce the harmful use of alcohol. Furthermore, we provide input to policy dialogues, e.g. through the World Wide Brewing Alliance, in the World Health Organisation, the World Trade Organisation etc. Carlsberg contributes to carry out research on beer and other alcoholic beverages, i.a. through the European Foundation for Alcohol Research (ERAB) and the International Centre for Alcohol Policies (ICAP). Also, Carlsberg is a member of EUROPEN, a cross-sectoral industry body working on the environmental challenges facing the packaging supply chain Programs for adherence to laws, standards, and voluntary Marketing Communication Policy and Responsible Drinking Policy codes related to marketing communications, including advertising, promotion, and sponsorship Total number of incidents of non-compliance with regulations and CSR: voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes % of employees trained on responsible marketing. Training could e.g. be e-learning, workshop or induction training Total hours of employeee training on policies and procedures 100% of our companies have reported that all HR employees have been introduced to concerning aspects of human rights that are relevant to the Labour and Human Rights Policy and are familiar with the situations covered by the operations, including the percentage of employees trained policy. Furthermore, 85% of our companies have trained all their people managers with direct reports in the Labour and Human Rights Policy, an increase of 10% from last year. Figures for the total percentage of employees trained are not available Total number of incidents of discrimination and actions taken 2 incidents of discrimination reported in 2013 REPORTING APPROACH AND CRITERIA trols more than 50% of the voting rights • The following sites are not included even not. Our aim is to provide our stakeholders Scope of the CSR reporting or that it otherwise controls. though they are majority-owned: Qitai Malt- with sufficient information about our com- Our CSR reporting is aligned with GRI G3. ing (China), Yinchuan Bottling Plant (China). pany so that they are able to make their In this document we cover the relevant and Joint ventures and companies over which • The following company has become own judgements concerning the Carlsberg significant social, ethical and environmental Carlsberg does not have the opportunity majority-owned during 2013: Chongqing Group's position and role in the societies issues for the financial year 1 January to 31 to exercise management control are not Brewery Co. Ltd. (Dec. 2013). Chongqing where we do business. December 2013. Our GRI table includes refer- included in the reported data. However, we Brewery Co. Ltd. covers 23 beer produc- ences to our Annual Report, which covers our work constantly with our partners to ensure tion sites. Integration into the CSR report- financial and economic performance. Togeth- a continuous focus on CSR issues.
ing system will start up in 2014; reporting We strive to make our CSR reporting access- er, this information supplies our stakeholders scope will depend upon maturity level.
ible and easy to read. We have worked with with an overview of our social, environmental If a majority-owned entity is acquired during • During 2013, Derbes changed its name usability and web experts to ensure that the and economic performance. the financial year, the entity will be included to Carlsberg Kazakhstan; Baku changed performance data and reporting content are in the reporting for the following year.
its name to Baltika Baku; and Slavutich understandable and well communicated on We receive recommendations on our CSR The boundary setting is different for the changed its name to Carlsberg Ukraine.
our corporate website.
activities and reporting from our assurance information related to "Economic value provider, KPMG, and continuously analyse generated" and "Total tax contribution". ENSURING DATA QUALITY Accuracy and reliability competitors and industry initiatives.
The principles used for this data can be In gathering information about our CSR Since 2009, we have used a dedicated CSR Furthermore, we use the internationally performance, we have applied the widely reporting system to help us collect data recognised Global Reporting Initiative (GRI) used principles of balance, clarity, accuracy, from local sites and consolidate this at standard in order to ensure comparability Comments on boundary setting: reliability, timeliness and comparability.
Group level. Every year since 2009, we have with other companies. Find out more from • The following site has been excluded improved the definitions of our performance from 2013 due to closure: Changji Please find additional information on each indicators in order to help our entities report Brewery (China, Xinjiang Group).
of the topics below: accurate and reliable data. However, we • The following sites have been closed/sold also recognise that there is still a challenge Entities included in the performance data since 2012 and will be excluded from 2014 ahead in order to obtain a complete and include majority-owned subsidiaries, defined reporting: Huocheng Brewery, China (June We are committed to communicating hon- fully aligned overview of all our CSR data, as companies that the Carlsberg Group 2013), Hami Brewery, China (Dec. 2013).
estly and openly about our performance, especially when it comes to local procedures directly or indirectly owns, in which it con- both when it has improved and when it has for data gathering. Our reporting system The scope and boundary described in this section mainly relate to CSR data gathered primarily through our CSR reporting Section 4: Reporting process and scope and management system.
has been developed by Enablon, an inter- Within the environmental data, any reference national provider of CSR software solutions. to "production site" or "site" refers to sites The system gives us a high degree of control where we produce beer, soft drinks or malt, over the data-gathering process, helps local as well as combinations of these, and the companies to compare data year on year, consumption at these sites. and also allows instant consistency checks during the data-gathering phase.
The term "production site" does not include off-site consumption such as logistics and We have appointed KPMG to provide inde- pendent assurance regarding selected econom-ic, environmental and safety indicators. In the Definitions for environmental indicators and various sections, we indicate which data has health & safety are available in been assured. For further det.
Internally, we report our CSR data with vary- We communicate two different kinds ing degrees of frequency, determined by the of plans and targets: nature of the data. Where necessary, we revise • One-year short-term commitments.
the reporting frequency in order to strike the • Three-year targets and objectives.
right balance and obtain the right data at the right frequency. Our annual data gathering These have been developed by each of the and external reporting are aligned with the fi- functional owners of the CSR focus areas. nancial data gathering using the calendar year.
These targets may be adjusted according to significant changes in the business, such as Our reporting criteria and indicators are major acquisitions and divestments, when based on the GRI G3 guidelines (2006) these are made before the target date. To where applicable. In the GRI table ( the extent possible, we include such changes ), we have listed whether our by applying scenario planning to our target- reporting is fully or partially in line with the setting process.
GRI indicator definitions. We include three-year comparisons, as rec-ommended by GRI, for all data for which a comparable three-year history is available. DefinitionsSome differences in the interpretation of some indicators at site level were identified during the reporting process. However, we do not believe these differences are material for the validity of the reported data.
INDICATOR DEFINITION Total thermal energy consumption Total thermal energy consumption for beer, soft drink and malt production Total electricity consumption Total electricity consumption for beer, soft drink and malt production Total water consumption Total water consumption for beer, soft drink and malt production Total production of beer and soft drinks Total fermented and non-fermented products produced Total CO2 emissions Total fossil carbon dioxide emissions1 (direct and indirect emissions) emitted due to energy used for beer, soft drink and malt production Specific thermal energy consumption Thermal energy needed to produce one hectolitre of beer and soft drinks Specific electricity consumption Electricity needed to produce one hectolitre of beer and soft drinks Specific water consumption Water needed to produce one hectolitre of beer and soft drinks Specific CO2 emissions Fossil carbon dioxide emissions (direct and indirect emissions) emitted from the energy used to produce one hectolitre of beer and soft drinks CO2 emissions from refrigerants Impact from refrigerants refilled or recharged in any system at a brewery or malting site. Expressed in CO -equivalents Lost-time accidents (LTA) in Production Occupational accidents that result in employees being unable to perform the full range of their normal duties for at least one day, excluding the day of the accident Lost-time accident rate in Production Number of LTAs x 1000 / number of FTEs Days lost (DL) in Production and Logistics Days absent from work (excluding the day of the accident) due to lost-time accidents Days lost rate in Production and Logistics Number of DLs x 1000 / number of FTEs Full-time equivalents in Production Number of employees on payroll, where part-time workers are converted into FTEs by an equivalent proportion and one person counts as maximum 1 FTE 1 CO2 emission factors used for fossil fuels and electricity are in accordance with 2006 IPCC Guidelines for National Greenhouse Gas Inventories and IEA statistics: CO2 Emissions from Fuel Combustion (2012 Edition). CO2 from other activities, such as Logistics, and CO2-equivalents from HCFCs are not included in the total or specific CO2 figures. Section 5: Definitions: environment and health & safety disposed of or wound up are recognised in Total tax contribution the consolidated income statement until the Total tax contribution is the sum of borne date of disposal or winding-up.
and collected taxes paid to governments for the period from 1 January to 31 December. The data includes a degree of estimation, as Amounts are included as paid when cash is tax per entity is not reported in detail if a type released from or received by Carlsberg.
of tax is below DKK 100,000 per year. Instead, taxes below DKK 50,000 are not reported, Operating cost and taxes above DKK 50,000 but below DKK Includes cost of sales, sales and distribution 100,000 are reported as DKK 50,000.
expenses, administrative expenses, other operating expenses, expenses included in The data is reported by the entity in local special items and share of profit after tax in currency in multiples of 1,000.
associates, but excluding employee wages.
BASIS OF PREPARATION
Data is collected for all companies that SCOPE OF REPORTING AND DEFINITION Employee wages Carlsberg A/S controls. Control is obtained Include wages to employees excluding social when Carlsberg A/S directly or indirectly "Tax" in this Report means any amount of security costs.
This Basis of Preparation presents the scope owns or controls more than 50% of the vot- money required to be paid to, or collected and methodology of the collection and ing rights in the subsidiary or has control in and subsequently remitted to, a government. Providers of capital reporting of the data on tax payments used some other way. Subsidiaries that Carlsberg Taxes have been reported by differentiating Include financial expenses recognised in the in the Carlsberg Group Corporate Social controls have reported 100% of their taxes between taxes borne and taxes collected. income statement, but not financial expenses Responsibility Report ("the Report"). borne and collected, and the full amount is The following sections provide the scope of recognised in other comprehensive income.
included in the Carlsberg tax contribution. the data presented in the Report.
The Report aims to provide readers with an Economic value retained overview of the total tax contribution that Companies over which the Group exercises Terms defined in Carlsberg's Annual Report Consolidated profit after tax.
the Carlsberg Group (excluding associates) a significant influence, but does not control, 2013 are not described below.
has generated during the year. The total tax are considered to be associates. Significant Current tax contribution is defined as taxes borne and influence is generally obtained by direct or Taxes borne and taxes collected are the The corporate income tax due in respect of taxes collected by the Carlsberg Group.
indirect ownership or control of more than taxes due in respect of an accounting period taxable profit for an accounting period, as 20% but less than 50% of the voting rights. as defined in the IFRS, as adopted by the defined in the International Financial Report- The Basis of Preparation supports the data Data for associates is not part of the Carls- EU. Borne taxes paid and collected taxes ing Standard IAS 12.
for taxes borne, taxes collected and total tax berg tax contribution.
paid, including excise duty paid, are included contribution included in the Report. when cash is released from or received by Deferred tax Entities that, by agreement, are managed The corporate income tax due in respect of It is the responsibility of the Management of jointly with one or more other parties (joint temporary differences between account- Carlsberg to ensure that appropriate proce- ventures) are consolidated proportionately, KEY TERM DEFINITIONS ing values and tax base, as defined in the dures are in place to prepare reporting in line and data is recognised in proportion to the Economic value generated International Financial Reporting Standard with this Basis of Preparation.
ownership interest.
Economic value generated comprises gross revenue, other income, financial income and All data, unless otherwise stated, is pre- Entities acquired or formed during the year income included in special items. Income pared for the year from 1 January 2013 are recognised in the Report from the date recognised in other comprehensive income to 31 December 2013. of acquisition or formation. Entities that are is not included.
Section 6: Tax assurance principles Employee taxes Excise duties (beer and soft drinks etc.) Withholding taxes on dividends, royalties, however, indirectly generated from Carlsberg's Include personal income taxes and social Excise duties are indirect taxes on the con- interest and professional fees business activities and therefore part of Carls- contribution for employees (borne and sumption or the use of certain products (e.g. Withholding taxes comprise the final tax berg's total tax contribution. alcoholic beverages or tobacco). In contrast burden on payment of dividends, interest etc. to value added tax (VAT), they are expressed after possible tax relief.
Personal income taxes as a monetary amount per quantity of the This comprises employee taxes withheld The term government means any govern- from employee wages and paid to govern- ment body or nation, state, region or district. Transportation taxes comprise flight tax, petrol ments, i.e. tax collected and remitted to Energy taxes (net, non-refundable) tax, registration duties and other taxes levied governments on behalf of employees.
Direct tax Energy taxes comprise environmental taxes on the mobility of goods and employees.
A tax paid directly to a government by the levied on the consumption of energy borne Social contribution withheld by the company person on whom it is imposed. Such taxes by companies' own supply of energy. Such Social contribution for employees This comprises social contributions payable also include non-refundable VAT, non- taxes may include taxes on the consumption Social contribution for employees comprises by employees to social security, private recoverable withholding taxes, real estate of electricity, oil, gas or coal.
the social security contributions levied on funded and unfunded schemes. Generally, and borne by the employing company. Such the employment of staff requires the em- contributions may include the employer's ploying company to administer employees' Indirect tax Environmental fees comprise additional en- national insurance contributions, employ- social security contributions by deducting A tax required to be paid to a government vironmental taxes that may apply depending ment insurance tax, employees' provident these from wages and salaries.
by one person at the expense of another. on company operations. Such taxes may fund, old-age, survivors' and disability insur- include other taxes and duties on the supply Withholding tax on dividend distributions of goods and services that are potentially made by Carlsberg A/S SCOPE OF REPORTING
harmful to the environment and have not Stamp duties This comprises taxes that are required to been included in the energy taxes.
Stamp duties comprise taxes that arise on be withheld in advance on payments 1. BORNE TAXES AND EXCISE DUTIES transfers of assets or capital. Typically, these made to shareholders.
These are the taxes that Carlsberg is obliged taxes would be reflected in stamp duty to pay to a government on its own behalf, or This comprises the non-deductible part of returns made to governments and tend to taxes that Carlsberg is obliged to pay to a third the value added tax, i.e. taxes that arise in become payable, and are paid, to govern- Value added tax, or VAT, is a broadly based party and that cannot be recovered from a relation to brewing or sale, which cannot be ments shortly after capital or assets have consumption tax assessed on the value recovered from a government. The pay- been transferred.
added to goods and services. It applies more ment is borne by the company and not the or less to all goods and services that are Corporate income tax Other taxes bought and sold for use or consumption in Corporate income tax comprises any tax on This category comprises all paid taxes certain geographic areas. This comprises the the business calculated on the basis of its Real estate taxes which have not been included in the above net VAT payable to a government, i.e. VAT profits, income or capital gains. Typically, Real estate taxes comprise any property- on sales minus VAT on purchases.
these taxes would be reflected in corporate related taxes, including property, land and income tax returns made to governments estate tax (other than stamp duty, which is 2. TAXES COLLECTED and tend to become payable, and are paid, shown below). Typically, these taxes tend to These are taxes not finally borne by Carlsberg, either in the year the profits were made or become payable, and are paid, to govern- but Carlsberg bears an administrative burden up to one year later, depending on the local ments throughout the year.
for the collection of taxes. These taxes are, tax rules as to timing of payments.
Carlsberg Bulgaria Pirinsko, Shumensko Carlsberg Croatia Carlsberg Danmark Jacobsen Brewhouse, Saltum, Carlsberg Fredericia Carlsberg Breweries Not a production site Danish Malting Group Saku Ölletehase A/S Brasseries Kronenbourg Kronenbourg Obernai Carlsberg Deutschland Holsten-Brauerei AG (Hamburg), Mecklenburgische Brauerei Lübz Mythos Brewery S.A.
Svyturys-Utenos Alus E.C. Dahls Bryggeri, Trondheim, Farris, Gjelleråsen, Imsdal Okocim Brewery, Brzesko, Kasztelan Brewery, Szczecin Brewery Danish Malting Group – Polska Danish Malting Group Polska Sp. z o.o. Slodownia Strzegom Sp. z o.o.
Carlsberg Srbija, Celarevo Carlsberg Sverige Falkenberg, Ramlösa Sverige Rhäzüns, Rheinfelden, Sion Carlsberg Supply Company Not a production site 1 The reporting sites described in this paragraph relate to CSR data gathered primarily through our CSR reporting and management system.
Section 7: List of reporting sites EASTERN EUROPEAZERBAIJAN Carlsberg Kazakhstan Derbes Brewery (Almaty) Baltika Breweries Baltika Brewery St. Petersburg, Baltika Don Brewery Rostov-Na-Don, Baltika Khabarovsk, Baltika Novosibirsk, Baltika Samara, Baltika Tula, Pikra Brewery Krasnoyarsk, Vena Chelyabinsk, Yarpivo Brewery Yaroslavl, Yarpivo Voronezh Carlsberg Ukraine Lvivska Brewery (Lviv), Slavutich Zaporozhye, Slavutich Kiev Carlsberg Uzbekistan Xinjiang Wusu Group Akesu Brewery, Hami Brewery, Houchen Brewery, Kashi Brewery, Urumqi No. 2 Brewery, Wusu Brewery, Korle Brewery, Yining Brewery Carlsberg Brewery Guangdong Carlsberg Brewery, Guangdong (Huizhou) Ningxia Xixia Jianiang Brewery Kunming Huashi Brewery Yunnan Dali Beer Co. Ltd Carlsberg Brewery Hong Kong Not a production site Carlsberg Hong Kong Not a production site Lao Softdrink Company Vientiane (Pepsi), Lao Brewery Vientiane, Lao Brewery Pakse Carlsberg Malawi Carlsberg Malawi Brewery Ltd. (CMBL), SOBO Blantyre, SOBO Lilongwe, MDL, SOBO Mzuzu Carlsberg Malaysia Carlsberg Kuala Lumpur Carlsberg Singapore Not a production site SEAB (South East Asia Brewery) Hue Brewery (Hue), Hue Brewery (Phu Bai) Carlsberg A/S100 Ny Carlsberg Vej1799 Copenhagen VDenmark Phone +45 3327 3300Fax +45 3327 4701

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