Energy Efficiency, GHG Emissions, Industrial  -  December 7, 2021

AB InBev to Lower Carbon Emissions by 25% by 2025

Anheuser-Busch InBev (AB InBev) has set a new goal to achieve net zero by 2040. 

The Belgian alcohol company is committing to transitioning its global operations to 100% renewable electricity and reducing its GHG emissions by 25%, according to a statement. AB InBev set a goal to reduce absolute Scopes 1 and 2 emissions by 35% by 2025 from a 2017 base year, in line with the 1.5 degrees pathway. 

The company also plans to increase its annual sourcing of renewable electricity from 7% in 2016 to 100% by 2025 and reduce emissions across the value chain (Scopes 1, 2, and 3) by 25% per beverage by 2025 from a 2017 base year. This goal includes over 87% of its total Scope 3 emissions in the science-based target, increasing its two-thirds inclusion threshold that is required by the Science Based Targets initiative. 

AB InBev’s 2025 goal includes a plan to organically reduce GHG emissions and its strategy centers on reducing Scope 1 and 2 emissions and categories within Scope 3 emissions that have the most material impact. Scope 3 categories included represent more than 87% of Scope 3 emissions: 

• Purchased goods and services
• Upstream transportation
• Emissions from fuel use not included in Scopes 1 and 2
• Downstream transportation
• Use of sold products (product cooling)
• End of life

The company said 5.8% of its emissions or around 1.6 million tons CO2e, come from electricity consumption in its own operations. AB InBev’s goal is to reduce 100% of these emissions by adopting renewable electricity by 2025 by adding additional capacity to the grid and taking a market-by-market approach to identify solutions for each individual grid. As a member of the corporate renewable energy initiative RE100, the company follows its guidelines for renewable electricity sources coming from solar, wind, biomass, biogas, geothermal, and water and on energy generation, leveraging self-generated energy through either on-site installations or off-site PPAs. 

AB InBev will also seek to reduce its emissions from logistics and transportation through route optimization to reduce fuel usage and the use of alternative fuel vehicles since logistics represents around 8.9% of its global GHG emissions. 

The company estimates it will eliminate over five million tons of CO2e by 2025.