Investing in a more circular future
As passionate hosts and respectful guests on this planet, we strive to minimise waste by imagining, producing and distributing our iconic brands in ways that optimise and help preserve natural resources. Circular Making is the third pillar of our S&R roadmap “Good Times from a Good Place” and is all about reducing and eliminating carbon emissions, water consumption and waste.
On the road to net zero
We are committed to reducing the overall intensity of our carbon footprint by 50% by 2030 and to following a trajectory of reaching net zero by 2050. This starts with continued efforts in our own operations (scopes 1&2). Today, The Absolut Company in Åhus, Sweden, has one of the most energy-efficient distilleries in the world, and this year Irish Distillers and Chivas Brothers announced significant investments in their distilleries to deliver carbon neutral operations by the end of 2026. Over the next few years, several ambitious projects in Ireland and Scotland will achieve a reduction in the distilleries’ overall energy use by improving on site energy generation efficiency, recycling heat generated in the distillation process and gradually replacing fossil fuels with renewable energy.
As our own operations represent just 6% of our Group emissions, we need to work closely with farmers and suppliers throughout our value chain to drive an overall reduction.
Every step of the way
Packaging is the second-most carbon-intensive area in our value chain and it also generates waste. We aim for all our packaging to be reusable, recyclable or compostable by 2025. To foster a more circular business, we apply five key principles at each step of our product lifecycle: Rethink, Reduce, Reuse, Recycle and Respect.
We have been reducing the weight of our bottles, increasing the use of recycled glass content and piloting new technology to reduce the carbon emissions of glass manufacturing. Brands such as Beefeater and Ballantine’s have been removing plastic from labels and caps, while Royal Salute has switched from porcelain to glass, and other brands are exploring alternative materials. For example, Absolut has partnered with start-up Paboco and other industry leaders to develop a paper bottle. Meanwhile, Perrier-Jouët has designed a new gift box, made from 100% natural fibres, that is lighter and entirely recyclable, while Pernod Ricard India removed gift boxes altogether.
Another key commitment helping to reduce carbon and minimise waste is implementing five new distribution models by 2030. In Hong Kong and Singapore, we have partnered with ecoSPIRITS to develop an innovative closed-loop distribution system. Absolut, Beefeater and Havana Club will now be shipped in bulk and delivered to bars in 4.5-litre glass containers - ecoTOTES - which once empty will be sent back to the ecoPLANT to be refilled.