How Green Procurement is Helping Asahi Group Reach Net Zero
Asahi Group, a significant player in the beverage industry, is prioritising sustainable procurement methods in order to meet its ambitious 2050 sustainability goals.
These goals include reducing CO₂ emissions, enhancing resource efficiency and managing packaging sustainability across its supply chain.
Asahi's latest strategies are aimed at reaching carbon neutrality by 2050, a goal which places substantial focus on procurement practices at levels 1, 2 and 3 in the supply chain. CO₂ emission reduction targets are set prominently in its procurement milestones: a 40% reduction in Scopes 1 and 2 by 2025 from 2019 levels, escalating to a 70% reduction by 2030 and a 30% cut in Scope 3 emissions by the same year.
As a result, Asahi's procurement teams are engaged in sourcing entirely renewable electricity for all production sites by 2025, setting a precedent in sustainable procurement strategies.
Strategic CO2 reduction through procurement
Procurement plays a pivotal role in Asahi's strategy to combat climate change.
The group has initiated several projects involving supply chain partners to transition to renewables, reduce consumption and lower indirect emissions.
For example, Asahi is focusing on transitioning its breweries in Europe and Australia to carbon neutrality by 2030. With collaborative efforts from suppliers, Asahi's procurement teams are sourcing products and services that solidify the group's move towards using green electricity by 2025.
The company's CEO, Atsushi Katsuki and Chief Sustainability Officer, Drahomira Mandikova, state in Asahi's sustainability report: “We are currently focusing on finalising and activating all our sustainability roadmaps, building One Asahi global capabilities through common methodology and digital sustainability platforms that compile and leverage regional data and accelerating collaborative engagement with different partners, suppliers and companies.”
This holistic approach underscores the vital role that procurement practices play in achieving sustainability targets.
Sourcing for sustainable packaging
Asahi's overarching aim in packaging is to align its procurement practices with sustainable outcomes by 2030.
The strategy involves ensuring that all containers and packaging are reusable or completely recyclable, with primary materials sourced from recycled content.
To this end, Asahi plans to increase recycled content in its glass bottles and aluminium cans by over 50% and PET bottles with at least 30% recycled content by 2025.
By implementing a circular economy approach, Asahi is addressing the challenge of packaging waste.
Notably, the reduction of plastic use by 25% in Europe by 2030 from a 2019 baseline is a significant target. Asahi has also expanded sales of unlabelled bottles, demonstrating a noteworthy increase in demand for such sustainable products.
Effective water management in supply chains
Water management remains a crucial aspect of Asahi's operational strategy, as the beverage industry is heavily reliant on water availability.
Asahi is implementing comprehensive water management plans, including innovations in cleaning processes and comprehensive data gathering, to optimise its usage.
Incorporating these initiatives into its broader strategy, Asahi's soft drinks division is reusing water in the cleaning of cans and bottles, indicating a strong commitment to resource efficiency.
By modifying equipment for better water flow management, Asahi is working to minimise water consumption effectively.
Overall, Asahi's commitment to sustainability is evident in its rigorous procurement strategies focused on renewable energy, sustainable packaging and water stewardship.
These efforts not only align with global sustainability goals but also signal an industry-wide paradigm shift towards more responsible sourcing practices.
