Baltika Breweries makes progress on sustainable development

june 9, 2015

Baltika Breweries has released its second report on sustainable development presenting detailed review and evaluation of its impact on society, economy and environment.

In 2014, Baltika continued to integrate corporate social responsibility (CSR) throughout the value chain. The cornerstone of this strategic process is embedding CSR in existing business processes, ensuring compliance with corporate policies in this sphere, setting targets to constantly improve CSR performance.

Economic contribution

Baltika’s activity is integrated into a long supply chain, so its impact on the economy reveals itself via direct and indirect effects. In 2014, the company created 101,531 jobs directly and in related industries. Baltika has indirect and induced effects on employment via purchasing from farms and the manufacturers of packaging and logistics, as well as by working with the companies from hospitality and retail sectors.

In the reported period, the company contributed RUB 75.1 bn of tax payments to the budgets across all levels and non-budgetary funds. The value added generated from production and consumption of Baltika’s products was RUB 58.5 bn.

Despite difficult economic situation, the company invested RUB 5.5 bn in production modernization, sales outlet equipment.

Baltika continued its agroproject, with 66 new partners joining in. The total number of agroproject’s participants amounted to 110. 100% of malting barley Baltika purchased from domestic producers.

Responsible drinking

Promotion of responsible drinking is one of Baltika’s key priorities. In the reported period, Baltika has carried out 40 responsible drinking campaigns. Among them “Beer patrols” – initiative that is aimed at preventing sales of alcohol to minors. In 2014, patrols took place in 15 cities, more than 9,000 points of sales were embraced, around 1000 volunteers participated – the company’s employees, representatives of NGOs, police, citizens.

Baltika continued the project “For sober driving” addressed to handle the issue of drinking and driving. The company also signed agreements on promoting responsible drinking culture with representatives of the Association of Bartenders in Smolensk, Orenburg and Khabarovsk. Special social activities were held during the festivals GreenFest, DAS FEST, «DON-fest» and «Prostor».

Environment

Baltika strives to reduce its environmental impact. In 2014, the company was not able to meet the ambitious set targets due to a change in production volume, which was caused by external factors. However, we improved the indicators in comparison with 2013: water consumption efficiency improved by 9%, thermal energy by 4% and electricity by 3%.

The launch of wastewater treatment facilities in Baltika-Tula was among important environmental projects of the last year. It will allow to lessen the load on municipal treatment plants and the ecological system of the Upa river, which receives the discharge of water from municipal sewers. The facilities use equipment that has a low consumption of energy and chemicals. The technologies that are used offer a possibility to use biogas originating during wastewater treatment as fuel for the site’s boiler-house.

Sustainable packaging

Baltika actively works with suppliers around the issue of decreasing packaging weight and thickness. In 2014, energy saving additives began to be used during the production of own-made and purchased preforms, which decreases energy consumption during the blowing of PET bottles by 15%.

Baltika has undertaken 24 initiatives on sustainable packaging. Baltika in conjunction with waste operators continued to implement the project “Benefit your city” which aim is to identify separate waste collection system for Russia. Due to this initiative by the end of 2014 1,547 containers for separate waste collection were installed in 12 cities.

Health and safety

The company pays special attention on providing safe working conditions for its employees. The complex approach of Baltika toward the improvement of procedures in the sphere of labour protection, and industrial and fire safety, has allowed the accident indicator to decrease. In 2014, the number of lost-time accidents reduced by 20% in comparison with 2013.

Jacek Pastuszka, President of Baltika Breweries LLC, Senior Vice President Carlsberg Group Eastern Europe Region: «Sustainable business development remains a priority of Baltika. This is particularly relevant within the context of macroeconomic instability, when businesses and society face new challenges. In this turbulent environment, it is important for us to be a reliable partner for our employees, customers, suppliers, consumers and other stakeholders. Integration of corporate social responsibility across the value chain allows us to increase economic efficiency, better manage risks and find new development opportunities.»

You can find the full version of Baltika Breweries sustainability report 2014 here.

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