OUR IMPRINT REPORT 2020 - Molson Coors
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OUR IMPRINT
REPORT 2020
O U R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
Contents Introducing the new Molson
INTRODUCTION
CEO Letter
03
03
SUSTAINABLY BREWING
Safeguarding Our
18 Coors Beverage Company
About Molson Coors Most Precious Resource 20
Beverage Company 04 On the Road to 1.5°C 22 by Gavin Hattersley, CEO
Building a Business With On a Loop: Moving Toward
a Positive Imprint 06 a Circular Economy 24
Our Imprint 2025 07 The Future of Farming 28
organization. With all we’ve endured over the of the International Alliance for Responsible
past three months, I am exceptionally proud Drinking (IARD), we’ve increased our focus
RESPONSIBLY REFRESHING 08 COLLECTIVELY CRAFTED 30
of how our people have come together to on reducing global underage drinking
Responsible Refreshment 10 Supporting Our People
support one another, and our communities, and accelerating work in the digital space
Talking to the Right Audience 13 Through Challenging Times 32
throughout these difficult times. to restrict access to underage audiences.
Understanding What Goes Into Every Sip 15 Lifting Up Our Communities 36 We’re also growing our portfolio of low-
We are driven by our purpose of uniting
Options to Satisfy Every Taste 16 Building an Ethical Supply Chain 38 and no-alcoholic choices as we continue to
people to celebrate all of life’s moments and
expand beyond the beer aisle, offering our
our ambition to be the first choice for our
consumers more moderate options.
people, our consumers and our customers.
However, our commitment to people starts As one of the world’s largest brewers, we
About This Report
with the employees who are the heart and take our role in helping to address global
soul of our company, and the five values we sustainability challenges seriously. We’re
aspire to live by: Put People First, Be Bold and working toward building a more sustainable
Welcome to the Molson Coors Our Imprint We have continued our commitment to Decisive, Take Accountability, Learn Every future for all, aiming to reduce our emissions,
Report 2020. This report contains updates report against international frameworks, Day and Celebrate Together. develop a circular economy for materials
This past year has been a time of
on Our Imprint 2025 goals, including such as the Global Reporting Initiative and protect and preserve the water sources
tremendous change and challenge for our As we work to strengthen our culture and
key stories and relevant highlights of our (GRI) Standards, the Ten Principles of in all our markets.
organization. We came into 2020 invigorated live up to our values, we remain deeply
performance against our sustainability the UN Global Compact (UNGC), the
by a renewed commitment to strengthen our committed to diversity and inclusion within We are a company with a long history of
focus areas. Sustainability Accounting Standards Board
culture by putting our people first, complete our company and in our communities. brewing. We’re proud of our rich heritage
(SASB) and alignment with the United
Following the initiation of a revitalization with a new company name that unified our Internally, we are working to build an and the iconic brands that we’ve built over
Nations (UN) Sustainable Development
plan in the fourth quarter of 2019, in employees and signified one future together. inclusive culture where every one of our the past 250 years and recognize where
Goals (SDGs).
January 2020 the newly named Molson The name points to our way forward, fueled employees feels encouraged and supported we must continue to grow. As we enter this
Coors Beverage Company restructured Full details of our 2019 performance, by groundbreaking brand campaigns, a to bring their whole selves to their job each chapter as the Molson Coors Beverage
to comprise two operating business units: aligned to these global frameworks, are commitment to expand beyond beer and day. We recognize that we still have a lot of Company, I look forward to building on our
North America and Europe. The Africa available in our Environmental, Social and our most robust innovation pipeline ever. work to do, but I’m proud of the steps we’re new values to strengthen our culture, uniting
and Asia Pacific businesses report into Governance (ESG) Report and our Then we experienced the unimaginable. taking to ensure equality, empowerment, our people to leave a positive imprint on all
the European business unit and the SDGs Impact Report. First, we were struck by the tragic loss of six justice and inclusion are the foundation of all of the communities where we live, make and
remaining international business is rolling members of our Milwaukee Brewery family our future actions. sell our products.
Our reporting, which includes our
into the North America business unit. in February. As we mourned these friends
ESG Report and SDG Report, has Of course, that doesn’t mean our efforts stop
and teammates, the world was hit by the
This report covers our progress in the been prepared in reference to the GRI there. As an industry, we have a responsibility Gavin Hattersley, CEO
coronavirus pandemic creating a new wave
fiscal year from January 1 to December Standards. Assurance of the environmental to tackle the issue of alcohol abuse and
of stress and uncertainty. Most recently, we’re
31, 2019, with additional information on data contained within this report in the we continue to promote the responsible
grappling with disturbing events of racism
activities after the fiscal year-end where fourth quarter has been carried out by enjoyment of our beverages. Internally,
and harassment and senseless deaths in
appropriate. The reporting scope, including Corporate Citizenship in accordance with and in collaboration with other members
the US. We’ve been through a lot as an
all data and metrics, covers Molson Coors ISAE 3000.
Beverage Company’s direct operations
For questions, contact us at corporate.
where we have operational control, unless
responsibility@molsoncoors.com.
otherwise stated.
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Brewing Beer and Beyond
BEVERAGE COMPANY
ABOUT MOLSON COORS
Living Our
With a story that stretches back 250 years, we've spent centuries
perfecting our techniques and brewing beers that stand the test of time.
When we became the Molson Coors Beverage Company in early 2020,
it marked the beginning of a new chapter for our organization. Our new
name upholds a rich legacy while pointing the way forward. It speaks
Values
volumes about who we are and what is possible for our business. Along
with our name, we have launched a new sustainability tagline – Our
Imprint: For a Better Tomorrow. It reiterates our commitment to do what
is right for people and the planet. Our 2025 goals have not changed with
the new name. We remain committed to our strategy, and doing what is
right for people and the planet.
Putting our values front and center
Our values were created in the spirit of simplicity – clear, direct and easy to understand. They are,
to a degree, aspirational, providing lots of room for us, as an organization, to grow and improve on
them. These values all work together to drive our plans, ambition and purpose and by increasing
our focus on them, we can shift our culture and ensure Molson Coors is a great place to work.
WE ARE CONNECTED
We have a presence in communities throughout the world. Our
KEY PUT PEOPLE BE BOLD TAKE LEARN EVERY CELEBRATE
engagement goes far beyond our direct operations, starting with
Regional HQ FIRST AND DECISIVE ACCOUNTABILITY DAY TOGETHER
our growers and traveling across our value chain to our suppliers,
Large Breweries We value and respect We are innovators, We act with integrity We are always looking We are passionate
distributors and retailers. We work with key players in the Molson
Other Brewing Operations differences and believe unafraid to be direct, and honor commitments for ways to improve ambassadors of
Coors value chain to bring us closer to Our Imprint 2025 goals, while
promoting a sustainable future for our stakeholders. diversity with inclusion is move with speed, while owning our and to help one our brands and our
the key to collaboration and challenge the mistakes, using them as another grow. business, and we believe
and a winning team status quo. an opportunity to learn. in the importance
culture. of recognizing and
celebrating our
accomplishments!
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O U R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
A POSITIVE IMPRINT We believe that almost everything we do leaves an
Our Imprint 2025
BUILDING A BUSINESS WITH
PROGRESS SINCE 2016 FIND OUT MORE
imprint on our business, on our communities and on our
environment. For Molson Coors, it’s Our Imprint, and we’re Programs to
Reduce Harm
Implement impactful programs to prevent alcohol-related harm1 10 out of 13 countries Page 10
making sure the impact we have is a positive one.
RESPONSIBLY REFRESHING
Global Partner with other global alcohol producers in the IARD to help As a separate phase to achieve Page 12
Partnership achieve 10% reduction globally in harmful alcohol use 10% reduction in alcohol-related
In 2017, we set ambitious 2025 sustainability harm, IARD has committed
to a new set of guidelines
goals, based on a robust sustainability
around digital marketing
materiality assessment. Our targets, which and communications
we aligned with the SDGs, developed by
Marketing Make certain 100% of our advertising and marketing programs 91% compliance in Digital Page 14
the United Nations, are designed to guide Compliance are in compliance with company, industry and applicable Guiding Principles audit
our efforts toward more focused actions governmental standards1
throughout our operations. The targets Information Deliver nutritional information, alcohol serving facts and 260+ products provide Page 15
encourage us to address the challenges Disclosures ingredients to consumers for 100% of our products1 information
that we see in the world, to meet the
Low- and Offer consumers exceptional quality low- and no-alcohol choices1 13 out of 13 countries Page 16
expectations of our stakeholders and to No-Alcohol
satisfy the needs of our consumers and
Water Efficiency Improve water-use efficiency in our primary breweries by 22% 3.41 hl/hl achieved Page 20
build long-term, sustainable value for our
to achieve a 2.8 hl/hl water-to-beer ratio
business. We are currently three years into
our efforts to meet these 2025 targets and Protect High-Risk Partner with others to protect valuable water resources in our Programs in 3 out of 11 at-risk Page 21
Watersheds high-risk watersheds where our breweries are located (11 total) brewery watersheds
we’re excited to share our progress.
Emission Reduce absolute carbon emissions across our operations by 21.1% absolute emissions Page 22
Reductions 50% and throughout our value chain by 20% reduction in operations;
17.9% in value chain
Packaging and • Achieve a 26% reduction in packaging carbon emissions 14.6% reduction in absolute Page 26
Plastic Reductions packaging carbon emissions
Supporting the SDGs • Make 100% of our packaging reusable, recyclable or compostable 99.3% of all our packaging
is reusable, recyclable or
Page 26
compostable
In 2015, the UN developed 17 global goals for sustainable development, designed to make
the world a better place for both people and the environment. At Molson Coors, we have • Ensure at least 30% recycled content is in all consumer-facing 0% of our consumer-facing Page 26
plastic packaging plastic packaging contains
identified the following nine SDGs on which we believe we can have the biggest impact:
30%+ recycled content
SUSTAINABLY BREWING
• Participate in recycling solutions to increase recycling rates 4 out of 13 countries Page 26
GOAL 2: GOAL 3: GOAL 5: or reduce waste in priority markets
Zero Hunger Good Health and Gender Equality
Zero Waste to Achieve zero waste to landfill at all our brewing and major 18 out of 29 facilities Page 24
Well-Being Landfill manufacturing facilities
Water Efficiency - Improve water-use efficiency in our agricultural supply chain by 10.1% decrease in m3/MT Page 29
Agriculture 10%, a volume equivalent to the entire water use of all our breweries based on a linear regression
model
Sustainable Source 100% of our barley and hops from suppliers who grow, 99% of our barley farmers Page 28
GOAL 6: GOAL 7: GOAL 8: Agriculture produce and deliver in a manner that recognizes and embraces and 29% of our hops farmers
Clean Water and Affordable and Decent Work and our sustainability standards
Sanitation Clean Energy Economic Growth Great Place Provide a great employee experience through living our People First In progress Page 33
COLLECTIVELY CRAFTED
to Work culture and values2
Health and Demonstrate Caring in Action by achieving a 40% reduction in 13% reduction Page 32
Safety Lost Time Accident rate
Community Invest $100 million in initiatives that aim to improve livelihoods, $41.1 million Page 36
GOAL 12: GOAL 13: GOAL 17: Investment foster empowerment and build resilient communities
Responsible Consumption Climate Action Partnership for Ethical and Work with suppliers who adopt our supplier standards and allow 33% of key suppliers Page 38
and Production the Goals Sustainable us to jointly commit to an ethical and sustainable supply chain participated in third-party risk
Supply Chain assessment screening
Supplier Diversity Promote diversity across our supply chain and actively engage Spent over $1.7 billion with Page 39
with women-owned or minority-owned businesses as suppliers diverse suppliers
1: In countries where we operate a large brewery.
2: We migrated from the Great Places to Work Index ambition after the company restructured at the end of 2019.
Find out more about how we’re contributing to the SDGs in our SDG Impact Report. This new goal to create a great employee experience will be measured through quarterly employee engagement surveys.
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Uniting People to
RESPONSIBLY
REFRESHING
Celebrate Together
Bringing our purpose to life
–
Our purpose as a business is uniting
“ while continuing to deliver on the familiar
people to celebrate all life’s moments. We collaborate experience of our legacy brands.
Over the years, we have continued to with industry partners We collaborate with industry partners
support initiatives to prevent underage to ensure we are to try to ensure we are marketing our
drinking and drunk driving, as well as beverages to the right audiences. As we
producing information to reduce harmful marketing our beverages work toward Our Imprint 2025 goals, we
consumption. As we expand our product responsibly. aim to make it easier for our consumers to
portfolio to include more low- and make informed choices and to enjoy our
no-alcohol options, we’re giving our products responsibly.
IN THIS SECTION consumers more beverage choices
Responsible Refreshment 10
Talking to the Right Audience 13
Understanding What Goes
into Every Sip 15
Options to Satisfy Every Taste 16
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O U R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
We want people to enjoy our products responsibly and that’s
REFRESHMENT
RESPONSIBLE
why we continue to invest in effective, targeted programs C A S E S T U DY:
to prevent alcohol-related harm. Reducing harmful alcohol SAFETY FIRST IN
MONTENEGRO
use globally is a collaborative effort; we maintain strong
partnerships with organizations and industry peers to In 2019, we took several steps to reduce
instances of drunk driving with the aim of
promote responsible consumption. reducing drunk driving instances in Montenegro.
By providing bus tickets at the rock festival Lake
Targeting Harmful Fest, we made sure that festivalgoers had a
Drinking in Charting the Way safe alternative to getting behind the wheel on
their way home. We also established a billboard
its Different Forms to Responsible Drinking campaign to coincide with Christmas and New
In 2019, the International Alliance for Responsible Drinking (IARD) published Year, encouraging members of the public to drink GOAL
We have developed a range of responsibly during the holiday season. Implement impactful
a series of reports on global trends in harmful alcohol use. Each of the three
programs designed to tackle programs to prevent
reports explored a different issue: underage drinking, HED and drunk driving. To support members of law enforcement crack
harmful drinking in its various alcohol-related harm8
forms, including underage drinking, The report series highlighted that, globally, harmful drinking habits are down on instances of drunk driving, we donated
drunk driving and heavy episodic on the decline. Underage drinking has fallen in over two-thirds of the €2,650 worth of breathalyzers to the Montenegrin
drinking (HED). We activate specific 63 countries surveyed,3 while drunk driving, an issue that causes roughly police force, which is expected to help screening
programs designed to address the 1.3 million deaths every year (WHO), has now declined in 34 of 36 countries to curb drunk driving events in our community.
most relevant and pressing harmful where data is available.4 HED, which can cause unintentional injuries,
drinking-related in the communities alcohol poisoning and cognitive impairment, is also on a downward trend. PROGRESS
where we live and work. We In the European Union, 29 of 30 countries show a drop in HED prevalence, Programs in 10
out of 13 countries where
partner with other committed as do many of the countries in the Americas and Africa.5
we have large
organizations from universities
The results of the reports are encouraging signs that global initiatives are brewing operations
to law enforcement – with the
having an impact on people. However, Molson Coors acknowledges that
goals of increasing awareness
there is still more to be done and we remain committed to continuing our
of responsible drinking and
multi-pronged approach and working with key partners to tackle these C A S E S T U DY: written and produced by students,
attempting to prevent underage
critical issues. which highlighted the importance
drinking and drunk driving. STUDENTS LEAD THE of responsible consumption, were
WAY ON RESPONSIBLE showcased to over 100 people.
DRINKING
The film festival is just one of the ways
C A S E S T U DY: To help bartenders and servers In 2019, the Brewery Association of that Molson Coors is helping to change
understand how drinking can affect Serbia, of which our Apatin Brewery the conversation and underscore the
PREVENTING behavior, and to prevent underage is a founding member, launched the important message of staying safe
UNDERAGE DRINKING access and alcohol abuse, Molson Trezno i oprezno (Sober and Careful) behind the wheel. To combat the
IN COLLEGES Coors supports Training for Intervention campaign. Between 2006 and 2016, issue of drunk driving in Serbia, we
Procedures (TIPS®) through our Great Serbia saw a 124% increase in the also continued to activate our “When
In the US, the percentage of underage
Plays program in the US. In 2019, we number of cases of drunk driving.7 I Drink, I Don’t Drive” campaign at the
drinkers fell from 40% to 36% between
partnered with the Techniques in We recognize that we have a role in Belgrade Beer Fest and Car Show.
2011 and 2015.6 While this is a step in the
Effective Alcohol Management (TEAM) changing the culture of drinking and We also supported NAVAK, Serbia’s
right direction, we remain committed
Coalition to offer TIPS training. To date, driving, so we created a campaign national driving academy, and their
to our position on underage drinking,
we have awarded grants worth over targeted at young legal age drinkers safe driving training to help new drivers
particularly on college campuses, with
$1.5 million through the Great Plays between the ages of 18 and 30 to understand the hazards of being under
our campaign 21 MEANS 21®. To support
program to address risky drinking reinforce the message that drunk the influence.
this, we work with law enforcement,
behaviors on college campuses. driving is harmful and socially
retail establishments, distributors, We understand there is more work to
Through collective actions such as these, unacceptable.
universities, community groups and do to prevent drunk driving as a society,
we continue working to tackle underage
industry associations to prevent people In collaboration with other Brewery and we are committed to working with
drinking in targeted and relevant ways.
under the legal drinking age from Association members, we organized different stakeholders and partners in
accessing alcohol. a screening festival for students of the all our large brewery markets to provide
Department of Film and TV Directing at solutions to the issue.
3: Based on data collection over various time periods from 2000 to present. Read the underage drinking report. the Faculty of Dramatic Arts in Belgrade.
4: Based on data collection over various time periods from 2000 to present. Read the drunk driving report.
During the evening, five short films
5: Based on data collection between 2005-2016. Read the HED report.
6: Source: National Institute on Alcohol Abuse and Alcoholism
10 7: Source: IARD 11
8: In countries where we operate a large brewery.
OU R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
Being responsible goes beyond developing programs
TALKING TO THE
RIGHT AUDIENCE
to prevent alcohol-related harm. It’s also about making
sure we are communicating information about our
products in the right way and to the right people. We
have robust guidelines in place to ensure we market
our beverages responsibly across our advertising and
communication channels.
C A S E S T U DY:
TAKING GLOBAL ACTION Marketing Compliance
AGAINST HARMFUL ALCOHOL USE As well as implementing our own robust marketing compliance standards, we strive to
Molson Coors is a member of several global partnerships make sure our marketing adheres to applicable government and industry guidelines. We
that aim to reduce the harmful use of alcohol, such as have several measures in place to ensure compliance.
the Worldwide Brewing Alliance and IARD. Through these
memberships, we support the development of global policies
on alcohol, as well as collaboratively delivering on initiatives to
promote only the responsible consumption of our products.
As a member of these global partnerships, we have an
important role to play providing a voice in public policy and
consulting with various public sector, civil society and private
stakeholders, including the WHO. In February 2020, the WHO
MARKETING LEGAL DRINKING GLOBAL COMMERCIAL
Executive Board passed a motion for accelerated action to
COMPLIANCE AGE COMPLIANCE RESPONSIBILITY
reduce the harmful use of alcohol worldwide. In line with this
COMMITTEE ACROSS ALL MEDIA POLICY
process, they have called for the development of a 2022–2030
Regional Marketing PLACEMENTS Our commercial employees
action plan through which to implement their global strategy.
Compliance Committees We collaborate with our and agency partners
Molson Coors intends to play an active role in consulting with
work with our legal team business unit legal teams receive training on our
the organization through our IARD membership and tackling
and commercial enterprise so that our communications Global Commercial
underage drinking and the harmful use of alcohol.
teams to regulate our are placed on media Responsibility Policy, which
IARD members made new commitments in January 2020 advertising and restrict channels where at least details our commitment to
in further reduce underage drinking, including: (a) to work alcohol marketing to legal 70% (71.6% in the US) of develop, package, market
with local authorities to ensure clear age restriction symbols drinking age consumers. Our the audience is of legal and sell our products in a
or language is present at any point of sale, (b) to affirm that Looking forward, IARD has recently launched new efforts in 2020, advertising messages should drinking age. responsible manner.
members do not, and will not, market alcohol-free extensions introducing five new commitments that will accelerate work to always be legal, truthful,
to alcohol brands to minors, (c) to ensure online safeguards reduce global underage drinking. These include introducing clear honest and consistent with
exist to prevent minors from interacting with alcohol brands age-restriction symbols and wording to alcohol brand products prevailing cultural standards
online and (d) to partner with online retailers to establish and ensuring that alcohol-free extensions of alcohol brands aren’t of good taste and social
global standards for the online sale and delivery of alcohol. advertised to minors. As a company, we are committed to working responsibility.
This final commitment is receiving heightened focus due both internally and externally, with industry partners, to accelerate
to the coronavirus pandemic, where many jurisdictions actions against the new IARD rules. We support our commitment to marketing responsibly by inviting consumers to let us
temporarily relaxed laws and regulations surrounding delivery know, via a third-party complaint resolution process, when they think we haven’t fulfilled
and online sales. As restrictions ease globally, many bars and our duty to self-regulate our advertising materials. We take accountability for our actions
restaurants are reopening. This will allow friends and families and strive to always conduct our business in a responsible manner. We also participate in
a way to safely re-engage with one another in an enjoyable PROGRESS
industry-wide investigations performed by the Federal Trade Commission in the US.
atmosphere. We all have a responsibility to help rebuild GOAL As a separate phase to
this industry; however, we must also work to keep excessive Partner with other global achieve a 10% reduction To ensure our marketing is targeted at the right people, we track advertising metrics.
alcohol producers in the in alcohol-related harm, In 2019, we received over 50 billion media impressions globally, 93% of which comprised
drinking out of these establishments. As the world begins to
IARD to help achieve a 10% IARD has committed to audiences above the legal drinking age. This exceeds the federal and industry standard
reopen, we have an opportunity to put an end to irresponsible
reduction globally in harmful a new set of guidelines
drinking behaviors. We aim to continue working in partnership of 71.6%.
alcohol use around digital marketing
with IARD and retailers to ensure our products are consumed and communications
by adults of legal drinking age and support the WHO’s goal of
reducing harmful alcohol use by 2025.
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We want our customers to make informed decisions
UNDERSTANDING WHAT
GOES INTO EVERY SIP
C A S E S T U DY:
RESPONSIBLE MARKETING FOR THE DIGITAL GENERATION about the products they buy and consume. We aim to be
In 2014, IARD launched the Digital Guiding ensuring alcohol producers do not transparent about what’s in our beverages and have set
Principles (DGPs) with the goal of ensuring misrepresent their commercial purpose.
our sights on making nutritional content, ingredients lists
all digital-based communication portals
comply with responsibility frameworks and
As a member of IARD, Molson Coors has
and alcohol serving facts available for all our products by
committed to upholding the DGPs, and to
are only accessible to legal drinking age
ensuring all our digital marketing platforms 2025, whether it’s on packaging or on our websites.
audiences. Social media is a valuable way
are only accessible to adults of legal drinking
for brands to reach their target consumers.
age and our communications promote safe We are working toward delivering nutritional information, alcohol serving facts and
However, as new platforms emerge, and
and responsible drinking. Internally, our legal, ingredients to consumers for 100% of our products. Currently, over 260 of our products meet
more Gen Z consumers join online spaces,
digital and alcohol responsibility teams are our labeling criteria, providing details on the products or on relevant brand websites.
we’re partnering with media partners to
working together to enhance and escalate
ensure our marketing only reaches legal
employee trainings to increase awareness
drinking age consumers.
of local best practices for complying with
IARD has already started this work, the DGPs across all social media. IARD
@DESIGN
involving prominent digital platforms, such commissioned the European Advertising
GOAL positioning ok?
as Facebook, Snapchat and YouTube. We Standards Alliance to monitor participant
Make certain 100% of
worked in partnership with IARD members to compliance with the DGPs across our global
our advertising and
implement safeguards that aim to restrict platforms. According to the results, Molson
marketing programs
underage audiences, enhance transparency Coors’ compliance rose from 60% in 2018 to
are in compliance with
and reinforce the message that underage 91% in 2019, thanks in part to targeted efforts company, industry and
drinking is unacceptable. These measures by our internal team. applicable governmental
include improving age screening and standards9
9: In countries where we operate a large brewery.
PROGRESS
91% compliance in 2019
DGP audit
Inspiring the values, alcohol content and freshness
dates on the labels of bottles and cans,
Industry Standard and ingredients on labels or websites
As part of our work be a leader in by 2020. Now, 100% of our Molson Coors
our industry, we have been a driving brands in the US disclose ingredients on
force behind industry-wide voluntary www.molsoncoors.com.
guidelines on disclosing nutritional
information to consumers. Our efforts in
this area go back to 2013, when Molson
Coors in the US helped inspire the Beer PROGRESS
Institute’s Voluntary Disclosure Initiative GOAL 260+ products provide
to encourage brands to post nutritional Deliver nutritional nutritional information,
information, alcohol serving 440+ products provide
facts and ingredients to alcohol serving
consumers for 100% of our information and 270+
products10 products provide
ingredients
10: In countries where we operate a large brewery.
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As we continue our journey under the new name of the
SATISFY EVERY TASTE
OPTIONS TO
Molson Coors Beverage Company, we’re expanding GOAL
PROGRESS
Offer consumers
our portfolio beyond beer, offering consumers great- exceptional quality low-
13 out of 13 countries
offer low- and no-
tasting refreshments no matter what the occasion. and no-alcohol choices11
alcohol products11
This includes developing a larger selection of low- and
no-alcohol products that offer consumers more choice
and more opportunities for refreshment, responsibly.
Venturing Into hop-infused sparkling water to market
in 2020. VYNE Botanicals waters will be
New Territory available in three flavors – Herbal, Citrus
It’s an exciting time to be part of the and Floral – and are non-alcoholic,
beverage industry. Consumers are non-GMO, vegan and gluten-free,
looking for more ways to enjoy great- contain zero calories and have no added
tasting refreshments to complement sugar. We’re delighted to introduce
any occasion. We are excited about this non-alcoholic innovations like VYNE to
opportunity to expand our portfolio into provide responsible refreshment for any
white space opportunities, developing occasion.
new beverage options that meet our With an aim toward bringing to market
consumers’ varied preferences. This more non-alcoholic beverages, we are
extended focus is highlighted by our excited about a new partnership with
name change to Molson Coors Beverage L.A. Libations, a non-alcohol drink creator
Company. It signifies a new stage for and incubator, to help us incubate fresh
the company as we grow our portfolio ideas and commercialize innovations
beyond beer, expanding into spaces more quickly.
for wine, spirits and other innovative
beverage options.
The creation of a portfolio of low- and
no-alcohol beverages is an important
C A S E S T U DY: the company is known for developing novel
part of Molson Coors Beverage
brands like Zico Coconut Water and Core
Company’s long-term strategy. We BEYOND BEER: GROWING Water, which target consumers looking for
launched our first non-alcoholic OUR NON-ALCOHOL beverages that support a healthy lifestyle.
beverage, Clearly Kombucha, in 2018,
BUSINESS WITH L . A .
and brought our first non-alcoholic This collaboration is the next step in the
LIBATIONS development of our portfolio beyond beer,
In 2019, Molson Coors made a significant strengthening our foothold in the non-
minority equity investment in L.A. Libations, alcoholic beverage market. Through it, we
establishing a long-term partnership aim to develop exciting new products that
with the business that helped to expand meet customer tastes and help us expand
our Clearly Kombucha brand in 2018. our line of refreshing beverages.
This partnership will be the next step in
establishing Molson Coors in the emerging
non-alcohol market.
L.A. Libations is a non-alcohol drink creator
and incubator. With a focus on creating
products that support health and wellness,
11: In countries where we operate a large brewery. Credit: Unsplash
16 17
O U R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
From Grain
SUSTAINABLY
to Glass
Brewing for Good
BREWING
“
–
Raw materials, like barley, hops and clean bring our products to market – to develop
water, are the fundamental elements we solutions to the biggest issues of today. We
rely on. As such, we have a responsibility won’t shy away from the challenge. We
to make sure we are good stewards of continue to explore joint opportunities to
these valuable resources. But it’s about
We’re protecting reduce our carbon emissions and water
more than just making sure our ingredients resources and exploring use, working together to achieve our
are sourced responsibly. We also need
ways to do more with sustainability goals and make a difference
to make sure we’re using water and on our planet.
energy in a way that leaves the smallest less so that people can
It’s part of Molson Coors’ values to
environmental footprint. enjoy our products for take accountability, and that includes
We face many challenges to resource generations to come. accountability for our environmental
stewardship: water scarcity, plastic impact, not just because we believe it’s a
pollution and climate change. That’s why nice thing to do, but because we believe
we collaborate across our value chain it’s the right thing to do. We’re protecting
– from the farmers who grow our high- resources and exploring ways to do more
quality barley, to the suppliers of with less so that people can enjoy our
our packaging, to the distributors who products for generations to come.
IN THIS SECTION
Safeguarding Our Most
Precious Resource 20
On the Road to 1.5°C 22
On a Loop: Moving Toward
a Circular Economy 24
The Future of Farming 28
18 19O U R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
SAFEGUARDING OUR MOST
Water is essential to life. Clean, safe water keeps people
PRECIOUS RESOURCE healthy and supports the crops that we need to feed growing
populations. With more people, and rising demand from
Not a Drop Wasted
We use water in every phase of our brewing process, giving us
Image TBC
plenty of opportunities to ensure we are using it as efficiently as
industry and agriculture, water supplies are under increasing possible. We have set a target to improve water-use efficiency in
pressure. We use water at nearly every stage of our brewing our large breweries by 22% to achieve a 2.8 hl/hl water-to-beer
ratio. In 2019, thanks to efforts throughout our operations, we
process, from watering crops to filling our bottles. That’s why reduced our global water use by 4.75% since 2016, to reach a
we believe we have a responsibility to lead industry water water-to-beer ratio of 3.41 hl/hl.
stewardship efforts. We’ve set aggressive targets to protect By sharing best practices through our global Fuel Energy Water
water resources in our facilities, especially in high-risk Emissions Reduction (FEWER) teams, we enable water reductions
at scale across our brewery network. For instance, at our brewery in
watersheds, and throughout our agricultural supply chain. Golden, Colorado – one of the larger breweries in the world – we
implemented standards from the Molson Coors Clean in Place (CIP)
playbook in 2019. As a result of the new water reduction processes,
we saved over 90 million gallons of water at the brewery, enough
water to fill 136 Olympic-size swimming pools in 2019.
GOAL
Improve water-use The CIP process is a multi-step cleaning process. It involves first
PROGRESS
efficiency in our primary running the water through the system of pumps, valves, tanks and
3.41 hl/hl achieved
breweries by 22% to pipes to remove heavy soils, followed by a cleaning step and a
4.75% reduction from
achieve a 2.8 hl/hl sanitization step to rinse unwanted residual material. This process
2016 baseline
water-to-beer
“
results in a clean and sanitary system. Reclaiming water from the
ratio
final rinse for use in the first pushout rinse of the following cycle,
we were able to drastically improve our water-use efficiency. At
the end of 2019, the Golden Brewery’s water-to-beer ratio reached
Our new cleaning process at 3.15 hl/hl, which was ahead of its target. We actively look for new
our Golden Brewery has saved opportunities to reuse clean reclaimed water across our operations,
over 90 million gallons of water, leveraging our FEWER teams to share learnings across our global
enough to fill 136 Olympic-size brewery network.
swimming pools in 2019.
GOAL PROGRESS
Partner with others to Program to protect Protecting Community Water Sources
protect valuable water watersheds in 3 out We partner with industry peers, government
resources in our high-risk of 11 at-risk brewery organizations and community stakeholders to
watersheds where our watersheds implement clean water stewardship programs
breweries are located and protect water resources. We focus our efforts
on our at-risk brewery watersheds, which we
define as experiencing challenges related to
quantity, quality or access to clean water. We work
closely with these local communities to develop
programs to preserve water resources. In 2020,
we aim to update our Watershed Risk Assessments
with insights pulled from the latest iteration of the
World Resources Institute’s Aqueduct Water Risk
Atlas and the World Wildlife Fund’s Water Risk
Filter. This will give us a more precise assessment
of current and future water challenges, as well
as what future scenarios could look like based on
environmental and socioeconomic variables.
20 21OU R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
Considering Future
The impacts of climate change are already being felt Climate Scenarios
ON THE ROAD TO 1.5°C
on a global scale, from higher temperatures to more While global efforts are being made to reduce
extreme and frequent weather events like flooding and emissions, we believe that businesses also need
to build resiliency in anticipation of climate-
wildfires. We believe we must have a sense of urgency for
“
related scenarios. In 2017, the Task Force on
adapting and building long-term resilience. That’s why, Climate-related Financial Disclosures (TCFD), a
at Molson Coors, we take seriously our role in reducing market-driven initiative driving recommendations
In the UK, we will achieve
for climate-related financial risk disclosures,
emissions in our operations and safeguarding the recommended that companies report on the our carbon emissions
environment for the future. resilience of their business strategies under various goal five years ahead
climate change scenarios, including how they of schedule.
incorporate climate-related considerations into
Setting Industry-Leading Goals governance and risk management.
C A S E S T U DY:
We believe that industry has a crucial role to play in tackling climate change and We recognize the need to identify the risks and
that we can help lead the charge. Molson Coors set robust goals to reduce carbon opportunities that climate change presents for our FLIP THE SWITCH: ACCELERATING EMISSION
emissions across our operations by 50%, and throughout our value chain by 20%. These business. That’s why we set up an internal cross- REDUCTIONS IN THE UK & IRELAND
goals have been verified by the Science Based Targets initiative. This makes Molson functional team to identify transitional and physical One way that Molson Coors will began in January 2020. We aim to
Coors one of the few leading companies to have aligned its direct emission reductions risks that could impact our operations under achieve its carbon emissions goals is incorporate more renewable energy
goal with the ambitious target of limiting the global average temperature increase to various climate change scenarios. We disclose by relying more heavily on renewable solutions later in 2020 to help us
1.5°C, going further than the original Paris Climate Agreement of 2°C. these risks annually through our CDP reporting energy sources to power our facilities. achieve our carbon emissions goals.
and financial filings. In 2020, we plan to further Work is underway to develop a
Achieving Reductions in Direct Emissions embed climate action into our business strategy, renewables strategy at our facilities
We are also making significant
completing a quantitative analysis of climate- changes to how we power our
Achieving our carbon emissions goals is no easy feat. However, we have identified four in North America; however, in the
related scenarios and mapping their business operations in Ireland. All our forklift
key ways in which we can improve our operational performance: UK & Ireland, things are already
impact, in line with TCFD recommendations. We will trucks now run on biofuel, and since
progressing.
embed the risks, as applicable, in our Enterprise 2019 our Franciscan Wells brewery
Risk Management process, and we will regularly In the UK, we’ve offset our electricity has been running on approximately
update the Molson Coors senior leadership, audit usage with renewable credits, which 23% renewable energy.
committee and Board of Directors.
20% CO 2
Improve energy Encourage Where possible, I ncrease the share C A S E S T U DY:
efficiency by 20% breweries to switch to cleaner of renewable
SOLAR BREWED BEER
be self-sufficient in fuel options sources in our
“Every decision we make at
CO2 production energy mix Terrapin Beer Company, one of the craft breweries
the brewery has an effect,
in the Molson Coors portfolio, has been known as
a leader in sustainability. A love for the outdoors is
and we continue to look for
core to its culture, and brewing sustainably is part opportunities to be better. A
of its DNA. lot of people make beer, and
Achieving Reductions in In 2019, Terrapin built on its existing sustainability
these days a lot of people
make good beer. We want to
Value Chain Emissions GOAL
efforts by installing the largest solar array of any
This is part of Terrapin’s sustainability
platform “Terraprint,” which aims to reduce stand for something bigger
PROGRESS craft brewery in the US state of Georgia, and
To reduce emissions throughout our value Reduce absolute carbon
21.1% absolute emissions the largest of any business in Athens. The solar
Terrapin's environmental impact through a than beer.”
chain, we are working with our suppliers to emissions across our series of initiatives targeted at minimizing water
reduction in operations; installation, which consists of 1,000 panels on the Dustin Watts, President,
identify alternative packaging materials, more operations by 50% and consumption and energy use, improving soil quality
17.9% in value chain roof of the brewery, will allow Terrapin to brew beer
throughout our value Terrapin Beer Company
opportunities to use renewable energy and since 2016 and increasing the recyclability of its packaging.
chain by 20% that is 100% powered by the sun.
further efficiencies in our logistics network, and In 2019, the brewery was recognized by the 2019
optimizing utilities usage in our operations. The brewery is projected to offset up to 339 tons Athens-Clarke County Water Conservation Office
of CO2, saving the equivalent of 362 acres of US for Leadership in Water Conservation as well as
forest in one year. Terrapin has also developed receiving the 2019 Environmental Impact Award
further plans to add solar panels to sunshades in from Pratt Industries.
the parking lot.
22 23OU R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
Collaborations to Close the Loop
CIRCULAR ECONOMY
MOVING TOWARD A
ON A LOOP:
If we are going to be truly sustainable, we believe We monitor waste streams to minimize what
we send to landfill and find ways to give
we need to continue transforming the way we make, used materials a second life. Spent grains
use and discard our products. Global resources are from brewing processes are particularly
increasingly under pressure in a culture driven by valuable, with most going to local farms
for use as animal feed, while spent yeast
fast-paced consumption. That’s why a key element of is made into pet food for cats and dogs.
our sustainability strategy is working toward a more Ethanol is also captured from waste
beer and converted to become
circular economy where we find ways to reuse or recycle fuel for transportation.
materials rather than sending them to landfill. Through
capturing clean water for reuse, sending spent grain
for use as animal feed and finding ways to make our
packaging reusable, recyclable or compostable, we
can ensure we’re giving resources a second life. GOAL
Achieve zero waste PROGRESS
Saving Waste Our Ploiesti Brewery in Romania is the to landfill at all
our brewing and
Zero waste to
landfill achieved in
latest facility to achieve and maintain zero
From Landfill waste to landfill status. It was achieved major manufacturing 18 out of 29 facilities
facilities
We operate on the philosophy that through improving people processes and
no resource should be wasted. Every training and developing a standardized
individual at our breweries is empowered solution to avoid sending waste to landfill.
to look for solutions to reduce and recycle While the brewery’s waste had traditionally
the waste we generate. It’s part of how been mixed, we developed a system of
smaller bins into which different waste C A S E S T U DY:
we’re redesigning our operations to
contribute to a circular economy. We have materials are sorted. The waste materials TURNING WASTE INTO ETHANOL: A WIN-WIN SOLUTION
made solid progress on our goal, with that can be recycled or composted are
At our Golden Brewery in Colorado, we are going a crucial solution to Boulder’s wastewater
18 of our 28 major brewing facilities now then recycled or composted, as applicable.
further to recover valuable spent yeast from our management strategy.
sending zero waste to landfill. As a result of these solutions, the Ploiesti
brewery process. By drying the spent yeast, we
Brewery has sent zero waste to landfill Thanks to these efforts, and other partnerships
are able to produce useful by-products such as
since November 2019. that we’ve formed to help upcycle our waste
brewer’s yeast, water and ethanol.
into valuable products, our Golden Brewery
Brewer’s yeast is dense in nutrients and protein sends zero waste to landfill.
and can be used as a nutritional supplement, a
probiotic and to aid digestion. We partner with
pet food companies to use the dry brewer’s yeast
from the Golden Brewery in their products.
The ethanol generated from this process is an
exceptionally valuable source of carbon as well.
“Boulder is committed to using
We have partnered with the City of Boulder
alternative carbon sources that
to treat local municipal wastewater using this
reduce the amount of traditional
ethanol through a process called denitrification.
The ethanol assists in removing nitrogen from
chemical needed, and our partnership
wastewater by acting as a food source for with Coors has helped us advance
microscopic bacteria that convert nitrate into that initiative and diversify our
harmless nitrogen gas. By providing the city with sources of recovered waste products.”
a consistent supply of ethanol, we are capturing Chris Douville, Wastewater Treatment
a brewery waste product and using it to create Manager, City of Boulder Water
cleaner water in the state of Colorado. This has Resource Recovery Facility
not only reduced the amount of waste generated
by the Golden Brewery, but has also become
24 25O U R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
GOAL
Stemming the Flow Make 100% of our
of Plastic Packaging packaging reusable, Joining Forces for
Each year, another 8 million12 tonnes of plastic enters oceans
recyclable or compostable a Circular Economy
At our Burton Brewery in the UK, we have
globally. Changes are being made, with measures being installed new machinery to facilitate a switch from In 2019, we signed the New Plastics
developed to curb plastic waste. We want to be part of the single-use plastic flow wrap to fully enclosed carton Economy Global Commitment, led by the
solution, doing what’s right for our planet. To accelerate board for our Carling and Coors Light brands Ellen MacArthur Foundation, joining a
our efforts, Molson Coors has set ambitious targets to group of over 400 organizations dedicated
In March 2020, we launched a pilot in 40 stores in
dramatically reduce its packaging footprint by 2025. to creating a circular economy for plastics.
Ontario to test 100% biodegradable packaging rings
Through the Commitment, we are using
on six-packs of Creemore Springs
tools provided by the Foundation and
PROGRESS embedding these tools and best practices
99.3% of all our packaging is reusable, in our operations.
GOAL
recyclable or compostable at the The New Plastics Economy Global
Participate in end of 2019
recycling solutions to increase Commitment is helping to inform our own
recycling rates or reduce processes. We’re eliminating unnecessary
waste in priority markets plastic items, innovating so that the plastics
We partner with various organizations to help we do need can be reused, recycled or
reduce waste and increase recycling rates. composted, and finding novels ways
We are involved in many different recycling to reuse materials, keeping them in the
initiatives, including The Recycling Partnership, economy and out of the environment.
Keep America Beautiful,
End of Waste Foundation and the
Glass Recycling Coalition
PROGRESS
4 out of 13 countries
GOAL
Ensure at least 30%
recycled content is in all
consumer-facing plastic packaging
In early 2020, we were the first in North America
C A S E S T U DY:
to trial new packaging rings developed by
manufacturer Hi-Cone, which contain over 50% RINGING IN THE CHANGES – SUSTAINABLE
recycled plastic content PACKAGING RINGS MAKE A DEBUT IN CANADA
PROGRESS Molson Coors is the first beverage company in North America to introduce new
0% of our consumer-facing plastic packaging packaging rings that are made with over 50% recycled plastic for six- and eight-packs
contains at least 30%+ recycled of beer. The sustainable rings are fully recyclable and will be rolled out across Canada,
content at the end of 2019 starting with six-packs of Coors Light distributed across grocery stores in Ontario.
The newly developed RingCyclesTM are being produced by packaging manufacturer
Hi-Cone and require 90% less non-renewable energy and 83% less water to make.
GOAL They also emit 75% less greenhouse gas emissions than a similar product made of
Achieve a 26% reduction virgin plastic and are recyclable. That’s why every RingCycles™ pack in Canada directs
in packaging carbon emissions consumers to www.ringrecycleme.com, where they can find out how to recycle the
rings locally.
PROGRESS
14.6% reduction in Introducing these new six-pack rings is the next step in our commitment to ensure
absolute packaging that there is at least 30% recycled content in all our consumer-facing plastic packaging.
carbon emissions We look forward to further rolling out this more sustainable packaging across Canada
since 2016 and the US in 2020.
12: https://advances.sciencemag.org/content/3/7/e1700782 26 27O U R IMP RIN T RE P ORT 2020 INTRODUCTION R E S P O N S I B LY R E F R E S H I N G S U S TA I N A B LY B R E W I N G C O L L E C T I V E LY C R A F T E D
Sustainability Back in the 1940s, Bill Coors’ vision for a high-quality and
THE FUTURE
OF FARMING Climate change and increasingly volatile weather can
make growing seasons uncertain and could threaten
Through Variety
We want to help independent growers future-proof their
sustainable barley supply led him to collaborate with
farmers to develop a barley breeding program. Through
the program, Bill taught farmers how to grow high-quality
available water supplies. We are working with our direct crops and have invested more than $20 million over the barley varieties, which contributed to our mutual success.
Skip to the present day and Molson Coors continues to
agricultural suppliers, helping our growers to build more last decade to do so. As well as developing soil and water
breed new non-GMO varieties that result in better yields
partnerships in our supply chain and investing in water
resilient businesses and sharing the tools, resources and and weather monitoring technologies, we look for ways to and are more water efficient. This led to the introduction
of Bill Coors 100 (BC100) in Montana, which has become
knowledge they need to help future-proof their crops. improve crop resiliency.
the most rapidly adopted variety of malt barley in the state
since 2017.
Better Barley, In 2020, we aim to introduce a new Moravian variety in
Better Beer GOAL GOAL
PROGRESS
Monte Vista, Colorado. This variety, the first new malting
In major markets, source Improve water-use barley that has been introduced to the area in over five
For our farmers, introducing ways to grow 10.1% decrease in
100% of our barley and hops efficiency in our years, has been developed with greater water efficiency in
crops more sustainably can be risky and, at m3/MT, based on a
from suppliers who grow, agricultural supply mind. It will contribute to our goal of reducing water use in
linear regression model,
times, an expensive endeavor. That’s why produce and deliver in a chain by 10%, a volume our agricultural supply chain by 10% and is just one of the
since 2016
we support our barley suppliers through manner that recognizes and equivalent to the entire
new varieties we look forward to growing in the next few
our Better Barley, Better Beer program. embraces our sustainability water use of all
years. In 2021, we plan to establish a new Moravian variety
This program provides farmers with tools, standards our breweries
in Idaho that has been developed to reduce water usage
resources and incentives to develop more and produce higher yields.
sustainable growing practices. The initiative
also allows us to collect sustainability
metrics from around 800 barley farmers
PROGRESS
through our Growers Direct Portal, which
99% of our barley farmers
helps us benchmark the performance of
and 29% of our global
our agricultural supply chain and share the hops farmers recognize
learnings back with our growers. C A S E S T U DY:
our sustainability
standards WORKING WITH NATURE ON “It all starts with healthy soil. If you
BREWOOD PARK FARM IN THE UK have healthy soil, you have healthy
plants, healthy food, healthy people
British farmer Tim Parton has been a crops, Tim avoids chemicals and instead
and a healthy planet.”
member of the Molson Coors Growers works with soil nutrients and biology.
Group since it launched in 2008. Through Tim Parton, Farm Manager,
He has also opted out of using
a system of regenerative agriculture, he Brewood Park Farm,
insecticides, relying instead on natural
is ensuring the barley he grows for our South Staffordshire, England
predators to keep insect populations in
beers is of the best possible quality. This
check. This has resulted in birdlife, such
means Tim is constantly looking for ways
as greenfinches, golden plovers and
to maintain soil that is healthy and full
woodcocks, returning to the farm.
of nutrients, to develop a more resilient
farming operation and support a more Tim hopes to encourage other farmers
diverse ecosystem. This, in turn, ensures to follow his lead – to work with nature,
that the barley that goes into our UK not against it, while putting soil health
beers is as healthy as possible. at the heart of everything and build
from there. He regularly conducts talks
For more than 15 years, Tim has been
and leads workshops to educate other
interested in maximizing soil health,
growers about regenerative techniques,
adopting a no-till system to reduce
sequestering carbon and promoting soil
disturbance of fungal networks that lie
health. By teaching others how to adopt
beneath the surface of the soil. These
regenerative practices, Tim is inspiring
living networks are important because
farmers to approach farming in a way
they lock carbon in the soil and release
that allows both their crops and the
nutrients to be taken up by plants. By
planet to thrive.
relying on fungi to naturally fertilize his
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