Baltika Breweries continues investing in sustainable development

june 9, 2016

Baltika Breweries, part of the Carlsberg Group, has evaluated its economic impact and summed up the results of environmental and social initiatives for 2015. The information is published in the company’s third sustainability report. To enhance the quality of the non-financial report Baltika Breweries for the first time followed principles and standard disclosures of the GRI G4 Sustainability Reporting Guidelines.

The report reflects Baltika’s progress in such areas as responsible drinking, sustainable packaging, environmental efficiency; it also contains the company’s indicators for 2015, influencing the achievement of Carlsberg Group sustainability targets 2017.

Difficult situation on the beer market, that can be attributed to tuff macroeconomic environment, unbalanced regulation and taxation of the sector in Russia, has influenced on realization of various initiatives. Nonetheless, the company keeps in focus sustainability issues. 

Jacek Pastuszka, president of Baltika Breweries LLC, Executive Vice President Carlsberg Group Eastern Europe Region: “In 2015 Baltika has improved its results on various indicators such as resources consumption, characteristics of our packaging, employees’ health and safety and promoted responsible drinking of beer. We would like our partners to share Baltika’s responsibility principles of work. For this reason, we adopted the Carlsberg Group Supplier and Licensee Code of Conduct, provisions of which were incorporated into counterparty agreements. Our company will continue implementation of sustainability principles throughout the value chain and contribute into the achievement of the Carlsberg Group 2017 targets in this area.”

 Key results 2015:

Economic impact. Baltika’s economic impact is reflected both directly and indirectly.  In 2015, the company generated 91,457 jobs directly and in related industries. Thus, each Baltika employee indirectly creates 12 jobs in related sectors.

In the reporting period, the share of local companies supplying materials and packaging to Baltika amounted to 90%. 100% of malting barley was purchased by Baltika from domestic producers.

The company’s aggregate tax payments to the budget across all levels and nonbudgetary funds stood at RUB 60.4 billion, including RUB 39.3 billion of excise duties.  The value generated from the production and consumption of Baltika’s products was RUB 49.7 billion.

Environment. Baltika strives to reduce its environmental impact. The company’s efforts are focused on systemic reduction of resources consumption and waste on our production sites. Owing to the complex of activities, in 2015, we managed to decrease total specific consumption of water by 3.6%, thermal energy – by 7%, electric energy − by 5.2% compared to 2014. The improvement of these indicators since 2009: water – 22%, electricity – 15%, thermal energy – 15%.

In the reporting period, a significant part of the company’s investments were sent to reconstruction of wastewater facilities in Baltika-Khabarovsk, designing of the wastewater treatment facilities in St. Petersburg, Novosibirsk and Rostov-on-Don.

The company and the United Nations Industrial Development Organization (UNIDO) completed an energy efficiency project on implementation of ISO 50001 standard. Baltika plans to certify its sites in compliance with the ISO 50001 standard in 2016.

Sustainable packaging. Baltika continued to optimize packaging of own products. In 2015, the company completed testing its new crown cap; the thickness was reduced from 0.22 millimetres to 0.18 millimetres. The 0.04 millimetre difference will allow Baltika to decrease tin waste by 180 tonnes per annum.

The company also managed to decrease the volume of tape used for pallets by 220 tonnes, due to reducing material thickness.

In the reporting period, Baltika also organized several volunteering activities at the music festivals  Greenfest and «Prostor» to promote separate waste collection culture.

Responsible drinking. Promotion of responsible drinking of beer is one of Baltika’s key priorities in sustainable development. In 2015, Baltika accomplished the “Beer patrol” project aimed at preventing of alcohol sales to minors. Activities took place in 16 Russian cities and covered 4,000 points of sales with 600 engaged volunteers.  8 “Be Sober behind the Wheel” activities to stop drinking and driving were held.

As well as that Baltika in conjunction with other companies-members of Russian Beer Union (RBU)  supported the Global beer responsibility day, the large-scale initiative established 18 September 2015. The campaign “18+ Rules for All – Responsibility for Everyone” was organized. The project's goal – to unite efforts of brewers, retailers and consumers, to prevent sales of alcohol to those under the legal age.

Health and Safety. Complex approach to improving safety and implementation of corporate culture of personal responsibility allowed the company to reduce by 14% the number of lost-time accidents compared to 2014, and the number of road accidents with our employees decreased by 9.9%.

Community engagement. In 2015, 2,464 Baltika's employees participated in volunteering activities and spent 11,338 hours.

The company also supported projects of the Carlsberg Foundation in Russia. The Carlsberg Foundation is the largest shareholder of the Carlsberg Group and one of the major Danish organizations that provides grants for scientific research and supports arts.

In 2015, Baltika continued supporting the Portrait Now! competition in Russia. Owing to its sponsorship, Russian artists joined the international project for the second time. Moreover, an exhibition of the second competition stage among artists from Russia, Belarus, Kazakhstan, and Ukraine was held at the Erarta Museum of Contemporary Art in St. Petersburg.

Stanislav Komissarov (Slava PTRK) and Vladimir Abikh, young artists from Russia, won first prize (DKK 85,000) for their social project, “Street Dirt,” which was selected by the jury out of 1,346 works participating in the competition. To celebrate its 25th Anniversary Baltika established a special nomination “Young talents: pursue perfection” for Russian artists. The prize went to Shamil Akhmedov, with his work entitled “Aibala: The Child of the Moon.” The international jury also recognized him as the best young artist among participants from Russia, Belarus, Kazakhstan, and Ukraine

Baltika also supported the opening of the large-scale exhibition “Russia and Denmark.1700-1900” devoted to the 300th anniversary of Peter the Great’s visit to Denmark in 1716. The event was organized by the Museum of National History at Frederiksborg Castle (an independent department of the Carlsberg Foundation), and the Tsarskoye Selo State Museum-Preserve with participation of the State Hermitage and the Peterhof State Museum-Reserve.

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