C&C Group plc have pledged to be a carbon-neutral business by 2050 at the latest. We have recently set our emissions reduction targets which are grounded in climate science and will be validated by the Science Based Targets initiative (‘SBTi’). We are committed to reducing our absolute Scope 1 and Scope 2 GHG emissions by 35% and our Scope 3 GHG emissions by 25% by 2030 (versus FY2020).

We have used the data collected for CDP reporting and selected 2020 as the base year for a SBTi engagement target. 2020 was used as the base year due to the impacts of COVID-19 on the business – activity in 2021 was significantly affected by lockdowns and other restrictions and would not provide a credible base for normal levels of activity.

In accordance with the FCA listing rules, our Annual Report and Financial Statements include climate-related financial disclosures consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (‘TCFD’).

This is the first year C&C has used the TCFD framework to support our reporting and we are committed to ensuring that we continue to improve our climate-related disclosures over the coming years. More details can be found on pages 46 to 53.

Optimising our manufacturing facilities.

Conservation of energy

With respect to energy targets, renewable procurement is currently a priority for C&C. In fact, from 1 April 2021, 100% of the electricity across our main sites in the UK and Ireland comes from renewable sources, covering c.98% of our electricity use.

The Group clearly identifies and manages energy costs in each operating site and country of operation, setting energy reduction targets to help reduce our exposure to future changes in energy costs. In FY2022, we aligned to our Science Based Target, setting a KPI to deliver a 4% year on year reduction in our carbon related energy use. C&C also benchmark our core production processes against competitors to understand our relative efficiency and continue to invest significantly in technology to reduce our overall energy consumption, including the introduction of direct solar power at our Clonmel Manufacturing facility.

In order to monitor our energy performance and our progress with respect to this goal, we utilise energy consumption, energy intensity and renewable energy consumption metrics.

Our Energy Consumption position is set out below.

kWh			FY2018-19	FY2019-20	FY2020-21	FY2021-22	Change YoY	Change V FY2019-20
Natural Gas			80,579,000	88,630,000	83,199,000	89,904,000	8%	1%
LPG			1,979,000	2,332,000	3,556,000	3,949,000	11%	69%
LNG			6,107,000	5,591,000	5,007,000	-	-100%	-100%
Diesel			31,137,000	33,257,000	15,329,000	24,618,000	61%	-26%
Petrol			-	450,000	111,000	346,000	212%	-23%
Kerosene/Fuel Oil			64,000	65,000	209,000	208,000	0%	220%
Wood			3,991,000	-	-	-	0%
Biogas (Out of Scope)			83,000	83,000	7,735,289	9,189,000	19%	10971%
Electricity			40,695,000	41,401,000	41,187,738	41,900,128	2%	1%
(Of which, renewables)			14,550,000	14,737,000	14,946,029	39,486,899	164%	168%
Total Scope 1			123,857,000	130,325,000	107,411,000	119,025,000	11%	-9%
Total Scope 2			40,695,000	41,401,000	41,187,738	41,900,128	2%	1%
Total Scope 1 and 2			164,635,000	171,809,000	156,334,027	170,114,128	9%	-1%

The Group has delivered a number of initiatives in our ongoing efforts to reduce energy use. These include:

• From 1 April 2021, 100% of the electricity, used in Wellpark, Clonmel and across our key UK depot network is provided by renewable sources.
• Biogas energy: anaerobic digestion technology at Wellpark Brewery and Clonmel generated 1,119,477 cuM of biogas / per annum.
• On 18 February 2022, Leo Varadkar, Tánaiste and Minister for Enterprise, Trade and Employment in Ireland, officially opened C&C Group’s new Sustainability Project at Clonmel Co. Tipperary. The Project includes the installation of the largest rooftop solar panel farm in Ireland, which will reduce the Clonmel site’s carbon emissions by 4%, saving c.290 tonnes of CO₂ per year and almost 10,000 tonnes over the next 20 years. The solar panels also provide up to 10% of electricity used onsite.

Reducing carbon emissions

In FY2022, the Group commenced work with the SBTi to set and have validated science-based carbon reduction targets to meet the goals of the Paris Agreement and limit global warming to well below 2°C. A near term validation is expected in FY2023.

Scope 1 and Scope 2 emissions

The table below details C&C Scope 1 and Scope 2 emissions in FY2022 (versus FY2020), for both location and market-based emissions. The purchase of renewable energy has delivered the biggest and most positive impact in FY2022. C&C has commenced trials using an alternative to diesel in our delivery fleet and changed to ambient vaporisation of our carbon dioxide in Wellpark. There were also COVID related impacts with a change to product mix, and delivery schedules as the business reacted to the pandemic. We have invested in FY2023 to deliver heat exchange opportunities to reduce our carbon footprint. The methodology and calculations for Scope 1 and 2 are based on the GHG Protocol.

Additional initiatives to drive emission reductions include, further optimising our biogas generation and carbon dioxide capture at our Wellpark Brewery in Glasgow, with our Clonmel plant already having this technology in place. The ability to capture carbon dioxide from our fermentation process has positively reduced site carbon dioxide emissions. In addition to the environmental benefit, the carbon capture capability at our main production sites, has seen C&C become c95% self-sufficient in CO₂, which provides security of supply when external availability of supply has repeatedly been scarce in recent years. We maximise use of recovered CO₂ and use collected gas for product carbonation initially, and for product storage cover gas to ensure the correct product quality.

To give impetus to C&C’s de-carbonisation efforts, the Group has set a target under the LTIP awards granted in June 2021 to reduce its Scope 1 emissions and Scope 2 emissions over the three financial years ending with FY2024, in line with the Paris Agreement. The incentive relates to delivery of a 12% (4,500 tonnes) reduction in Scope 1 and 2 carbon emissions (versus FY2020).

Scope 3

Our Scope 3 emissions (including supply chain, customer use of our products, and other indirect emissions) make up around 95% of C&C’s total emissions. We recognise our responsibility and the need to collaborate with suppliers and customers to tackle these emissions.

C&C has signed up to participate in the CDP Supply Chain Screening Programme for 2021. This sees C&C work with 130 strategic supply chain partners and request them to disclose climate-related information to allow us to use the reported data to measure supplier environmental impacts and collaborate with them to track progress of sustainability goals and/or commitments. In addition, we are encouraging our key supply chain partners to publish and share their full carbon footprint via CDP as C&C has done for the last 12 years.

To support our Supply Chain Screening approach, CDP delivered training to circa 50 C&C Procurement and Commercial colleagues on how supply chain screening and collaborating with suppliers and customers can play a vital role in tackling environmental harm and achieving global climate goals.

To achieve our target of reducing our Scope 3 emissions by 25% (Vs FY2020) by 2030, we have also committed that suppliers and customers making up 67% of our Scope 3 emissions, (Purchased Goods, Downstream Transport and Use of Sold Goods), will have science-based targets in place by 2026. The Group will continuously engage with suppliers and customers to support them to set science-based targets for their own emissions.

C&C Group has again received a B rating from CDP on our latest Climate Change score.

Location-Based Emissions

		Total C&C	Total C&C	Total C&C	Total C&C	Change	Change V
		FY2018-19*	FY2019-20	FY2020-21	FY2021-22	YOY	FY2019-20
Net Revenue (M Euro)		1,575	1,719	737	1,438	95%	-16%
Production volume (Hectolitres)		4,388,761	4,396,981	3,803,970	4,039,648	6%	-8%
Scope 1 (tCO2e)		24,404	26,216	20,908	23,402	12%	-11%
Scope 2 (tCO2e)		13,688	12,768	10,681	10,255	-4%	-20%
Total Scope 1 & 2 (tCO2e)		38,092	38,984	31,589	33,657	7%	-14%
Scope 3 (tCO2e)		221,976	718,088	440,733	550,736	25%	-23%
Total Footprint (tCO2e)		260,068	757,072	472,322	584,393	24%	-23%
*Acquisition of Mathew Clark, and in-housing of Tennent’s distribution, with associated depots and transport fleet
Emissions Intensity
		Total C&C	Total C&C	Total C&C	Total C&C	Change	Change V
		FY2018-19	FY2019-20	FY2020-21	FY2021-22	YOY	FY2019-20
Scope 1 and 2 tCO2e per M EURO		24.19	22.68	42.86	23.41	-45%	3%
Scope 1 and 2 kgs CO2e per HL produced		8.68	8.87	8.30	8.33	0%	-6%
Market-Based Emissions
		Total C&C	Total C&C	Total C&C	Total C&C	Change	Change V
		FY2018-19	FY2019-20	FY2020-21	FY2021-22	YOY	FY2019-20
Net Revenue (M Euro)		1,575	1,719	737	1,438	95%	-16%
Production volume (Hectolitres)		4,388,761	4,396,981	3,803,970	4,039,648	6%	-8%
Scope 1 (tCO2e)		24,404	26,216	20,908	23,402	12%	-11%
Scope 2 (tCO2e)		13,688	6,063	5,957	794	-87%	-87%
Total Scope 1 & 2 (tCO2e)		38,092	32,279	26,865	24,196	-10%	-25%
Scope 3 (tCO2e)		221,976	718,088*	440,773	550,736	25%	-23%
Total Footprint (tCO2e)		260,068	750,367	467,598	574,932	23%	-23%
Emissions Intensity
		Total C&C	Total C&C	Total C&C	Total C&C	Change	Change V
		FY2018-19	FY2019-20	FY2020-21	FY2021-22	YOY	FY2019-20
Scope 1 and 2 tCO2e per M EURO		24.19	18.78	36.45	16.83	-54%	-10%
Scope 1 and 2 kgs CO2e per HL produced		8.68	7.34	7.06	5.99	-15%	-18%

Definitions:

Scope 1: Direct emissions from our own operations.

Scope 2: Indirect emissions from our purchased energy (mainly electricity).

Scope 3: Including supply chain, customer use of our products, and other indirect emissions.

*FY2019-20 now includes all scope 3 emissions in our reporting.

Streamlining our Logistics Operations

We recognise that our carbon footprint extends beyond manufacturing and the distribution and transport of our products also contributes to the Group’s carbon footprint. The Group has an “end to end” supply chain model in the UK and Ireland, with circa 360 vehicles in operation. Our Group-wide logistics forum sees learnings shared across C&C, allowing efficiencies to be identified and captured across every stage of the product journey to reduce delivery miles and carbon footprint.

In FY2022, our KPI to reduce carbon generated by logistics fleet by 250 tonnes (5%) CO₂e achieved a 200-tonne reduction.

We have completed the optimisation of our English and Scottish delivery networks, including the opening of our new depot at Newbridge in Edinburgh. This exercise has seen us consolidate volumes from three separate networks into two, bringing all of our final mile English distribution in-house, reducing road miles and carbon emissions.

In our primary network, we track, measure, consolidate and identify opportunities to reduce vehicles movements across our sites. We achieved these improvements through profiling existing order patterns, order quantity, frequency and minimum order quantities. By engaging with retailers, we will introduce revised schedules, resulting in more consistent movements and logistics performance.

The Group has also undertaken work with suppliers to improve logistics performance (e.g. creating minimum acceptable standards for 3rd party hauliers in relation to engine standards, emissions management, load optimisation and investments in more efficient vehicles - including current trials of electric and LNG vehicles, and other alternatives including biofuels).

We have invested in logistics and supply chain improvements to reduce emissions, including engagement with upstream material suppliers and downstream logistics suppliers to optimise routes and reduce miles over which materials and finished goods travel.

Our Supply Chain Logistics and Procurement teams continually work with suppliers to identify opportunities to increase local sourcing of materials, optimising packaging materials, increasing percentage utilisation of vehicles and cutting road miles.

Our Fleet

All new vehicles leased or purchased must meet the EURO 6 standard and 93% of our fleet are currently EURO 6. We amended vehicle specification (by for example, applying the Direct Vision Standard for heavy goods vehicles which assesses and rates how much the driver can see directly from their cab in relation to other road users).

We have 34 solar-assisted trucks in our delivery fleet. With solar panels on the roofs, the trucks use solar energy to power all on-board ancillary equipment, cutting fuel consumption by 5%.

Driving efficiencies

We are eliminating the need for secondary loads, by introducing direct delivery of orders from manufacturing sites to customer premises. We continue to increase the level of direct deliveries from the Clonmel and Wellpark sites.

Software including transport network, route planning and on-road training for driver habits have maximised fuel efficiency and limited frequency of runs to distance areas each week.

Increasing the Recyclable Rate for our Brands and Improve Sustainable Packaging

During FY2022, the Group met its ambitious commitment to be out of single-use plastics (shrink and hi and mid cone rings) in the packaging of our canned products, reducing the environmental impact and ecological footprint of our products. All of our canned product is now in fully recyclable cardboard, removing more than 200 million plastic rings per annum from the environment, as part of an overall plastic reduction of several hundred tonnes. The investment also recognises the future market changes including the Deposit Return Scheme (‘DRS’) introduction in Scotland, planned for August 2023 and in Ireland (date still to be confirmed).

During COP26, Mairi McAllan, Scottish Minister for Environment and Land Reform, joined Shona Munro, Director of Manufacturing at C&C Group, and Jo Green, Chief Officer for Green Recovery at the Scottish Environmental Protection Agency (SEPA), for a tour of Wellpark Brewery to mark Tennent’s achievement of removing single-use plastic from packaging of our canned products.

Leo Varadkar’s visit to Clonmel on 18th February also marked Bulmers investment into ‘dry end’ packaging machinery to reduce the environmental impact and ecological footprint of consumer packaging. As of January 2022, plastic is no longer used in the packaging of our canned products at Clonmel.

Tennent’s is the only brewer who is a member of the UK Plastics Pact, which has additional targets on plastic packaging, waste and recyclates.

Also, during COP26, Tennent’s Lager committed to add a “Please Enjoy Sustainably” message on all cans to encourage recycling, reduce littering and benefit the environment. While recycling logos are widely carried on canned products, it is hoped that our more direct call-to-action on the 120 million cans filled on average every year, will encourage drinkers to increase recycling.

Our lightweight can programme at Wellpark and Clonmel, further optimising the material used, has now removed c.450 tonnes of Aluminium from the environment, since site enhancements were made in FY2019.

In Clonmel, we have also reduced the amount of plastic in polyethylene terephthalate (‘PET’) in our preforms. Light weighting in PET and Out of Plastics initiatives have delivered a reduction of c.800 tonnes in plastics, since site enhancements were made in FY2019.

In FY2023, we will switch to 100% recycled plastic on our keg caps and trial 50% PCR shrink wrap for our glass and PET bottle formats.

In Ireland we continue to produce reusable glass bottles for our cider products and in all territories, we distribute beer and cider in reusable stainless-steel kegs. We have demonstrated the cost, carbon and waste reduction benefits of retaining this form of packaging compared to disposable bottles/kegs. Across C&C Group, 29% of our own beer and cider is sold in returnable formats (returnable keg and bottle).

Waste Reduction

In FY2022 C&C’s main manufacturing sites at Clonmel and Wellpark again both achieved our target of sending zero waste to landfill. We continue to implement a waste hierarchy approach through prevention, re-use and recycling:

• In our manufacturing operations, we routinely monitor our waste stream and target improvement annually. We measure raw material usage and yields on a weekly basis to ensure the efficient use of our resources. We introduced improvements in our recycling facility at Wellpark brewery reducing the number of collections.
• 100% of by-products are recycled for use as animal feed or organic compost. Over 20,000 tonnes of spent grain and apple pomace were used as animal feed, with the remainder of our waste either recycled or sent for energy recovery.
• As part of a Scottish Government funded initiative, Tennent’s is working with Zero Waste Scotland (‘ZWS’) and leading environmental consultancy, Eunomia, to identify further circular opportunities in our operations and to develop a pathway towards adoption and implementation of those opportunities.

Piloting Alternative Fuel Vehicles

Electric vehicles (‘EVs’) are being trialled for deliveries in urban areas. An electric-powered van has been utilised for small-volume deliveries of Five Lamps craft beer in Dublin and a trial of electric vans has taken place at the Matthew Clark Park Royal depot, together with a Hydrogenated Vegetable Oil (‘HVO’) diesel replacement trial at our Bedford depot. ln Scotland, we are investigating alternative fuel types for vehicles, electric vehicles for Wellpark to Cambuslang trips and hydrogen for longer distance inter depot shunts.

Electric and hybrid company car options are now available to colleagues across the Group. We are installing EV charging at our 5 main sites, with a plan to install across our entire network by 2024.