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SABMiller plcMapping our carbon footprint

Dave GrantGroup Environmental Manager

Alcohol and Greenhouse Gas Emissions Working SeminarLondon19th October 2005

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1) SABMiller Overview

Miller (8)

SABMiller Europe (18)

SABMiller Africa & Asia (61)Beer SA (7)

Bavaria (16)

BevCo (2)

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BrandsOur

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1.1) Facts & Figures (pre Bavaria acquisition):

2004/05 lager volumes in excess of 148 million hl

Brewing presence in over 40 countries across four continents

Outside the USA, SABMiller plc is the 4th largest bottler of Coca-Cola products in the world

Year ended 31 March 2005:

• Pre-tax profit = US$2,194 million and,

• Turnover = US$14,543 million.

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SABMillerGuiding

Principles

Wat

er

Clim

ate

Cha

nge

Pack

agin

g &

Litt

er

Op

Was

te

2) Overarching Management Framework

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3) SABMiller – Scope of Carbon Footprint

Supply Chain

Post Plant/Consumer

Plant

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emissions

emissions

emissionsemissions

emissions

emissions

emissions

emissions

emissions

Power

Employees+ Offices

Raw MaterialsDistributor Consumer

Packaging Waste

Recycling

Reuse Disposal

Tertiary Packaging

Disposal

Farm

Chemicals

Water

Refrigeration

PaperElectricity Transport

Other Waste

Waste

LandfillRecycling

Employee Waste

Recycling

Disposal

Machinery

Production/Packaging

Effluent

packaging

Packaging materials

customer

Refrigeration

emissions

emissions

emissions

emissions

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3.1) Supply ChainS

uppl

y C

hain

1. Agriculture

2. Packaging

3. Raw Materials Processing (Barely, Maize & Hop Processing)

8 kg CO2 / tonne barley (Africa)

Varies greatly according to substrate

Malt (ave) = 400 kg CO2/tonne malt

3. Raw Materials Processing (Barely, Maize & Hop Processing)

Data available for one division only

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Supply chain: agriculture

1 Tonne BarleyNitrogen = 6.25 kg

Phosphorus = 6.1 kg

Herbicides = 0.6 kg

Insecticides = 0.0003 kg Water = 750,000 litres

Diesel = 3 litres

CO2 (equ) = 8 kg

Role of sequestration?

Source: Methodological Framework for application of Environmental Life Cycle Assessment (LCA) to Australian Grains. Narayanaswamy. V, Althan. J, Van Berke. R and McGregor.M. 2003. Curtin University of Technology, Australia.

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Supply chain: packaging CO2 emissions

GHG emissions due to material production and waste management. Excludes emissions related to : packaging manufacturing, cleaning, and transportation.

Source: Wrapping Up Greenhouse Gas Emissions: An Assessment of GHG Emission Reduction Related to Efficient Packaging Use. Hekkert,P et al. 2001. Journal of Industrial Ecology

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Caledon (South Africa):•507 kg/tonne

Alrode (South Africa):•559 kg/tonne

Kwe Kwe (Zimbabwe):•585 kg/tonne

Moshi (Tanzania):•563 kg/tonne

Saris (Slovakia):•154 kg/tonne

PU (Czech Rep.):•222 kg/tonne

SAPLO Spa (Italy):•200 kg/tonne

Radegast (Czech Rep.):•263 kg/tonne

Combined Output 2004/5 = 430 000 tonnes malt

Supply chain: Malting Plants

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3.2) PlantP

lant

9.08 kg CO2 / hl1. Boilers

?

2.5 kg CO2/hl wort @ 12 plato &

0.35 kg per degree Plato above 12

6.15 kg CO2 / hl2. Electricity

3. Fermentation

4. Packaging

5. Air & RoadTravel

?

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Plant: Energy use by Type

Energy Use by Type

1%

50%

1%8%

31%

9%

Biogas Coal Diesel Fuel Oil Natural Gas Purchased Steam

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Plant: Emissions by Fuel Type

CO2 Emissions by Fuel Type

62%

1%

15%

22%

Coal Diesel Fuel Oil Natural gas

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3.3) Post Plant / ConsumerS

uppl

y C

hain

1. Distribution

2. Packaging(recycling)

3. Landfill

?

?

?

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Energy footprint to produce 1 litre (4% alcohol) of larger transportation and post plant/consumer energy excluded

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4.1) Tools

Employee education

Fuel Switching (including renewable energy)

Fleet optimisation

CHP

Other initiatives:

Voluntary programmes (Climate Leaders)

Emissions Trading

CDM projects