Water is one of the critical factors of ESG (Environment, Social, and Governance). Fresh and clean water is increasingly endangered despite being considered a plentiful renewable resource mainly due to population growth and economic activity leading to an increase in water demands and pollution.
According to United Nations, if current consumption and production patterns do not change, there will be a 40% shortfall in water supply by 2030. Companies are expected to face increased scrutiny such as limits on water withdrawal and tight regulations over their water use as global water resources face increased stress.
Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction. Apparel and food & beverage industries are highly dependent on groundwater through supply chains. According to Aquastat, 19% of global freshwater withdrawals come from industry and energy.
In terms of water withdrawal, the beverage and bottled mineral water sectors need to be careful because groundwater is a raw material for them. Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Carlsberg AS (Carlsberg) is a producer and marketer of alcoholic and non-alcoholic beverages. Its product portfolio includes beers, alcohol-free beers, pilsner, lagers, and ciders. It also offers energy drinks, fruit beers, juices, low alcohol and ready-to-drink products, soft drinks, and water.
In 2021, Carlsberg consumed 14.3 million cubic meters of water, an increase of 5% over 2020. Water consumption in Carlsberg’s operations reduced by 2% since 2015. Water consumed by the brewery is obtained mainly from municipal, boreholes, and surface water with municipal providing 51% of water withdrawn by Carlsberg and boreholes providing 40% in 2021.
Carlsberg has a target to reduce water usage at its breweries by 50% by 2030.
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