1. Sustainable brewing and packaging – Supplying great beer with minimal impact on the planet 15 th June 2016

2. British Beer Pub & Association Formed in 1904 – as the Brewers’ Society Members produce and sell 90 per cent of UK beer Own and/or operate nearly 20,000 pubs in the country Operate the brewing sector Climate Change Agreement – insight into energy since the mid-1970s Established Brewing Green – brewing sector environmental commitment – believed to be the first anywhere in the world Report annually on performance of the sector with case studies Lead on Government liaison on energy and environmental policy for brewing – engaged with WRAP, etc

3. Brewing hotspots Source: BIER (based on 33cl bottle consumed at home)

4. Energy savings

5. Energy Industry activity focused on what can be done within the brewery itself But work also ongoing on distribution, raw materials and retail Major savings delivered – 69% reduction in carbon emissions compared to 1990 –through energy efficiency improvements and declining volumes Legislation continues to act as a driver – most recently ESOS audits – energy audits for large companies – highlighted significant areas for improvement Benchmarking across the sector – to gauge relative performance Looking at innovative technologies with the Carbon Trust

6. Energy benchmarking – example

7. ESOS audit results

8. Example of savings Opportunity Saving & Payback Details Keg wash heat recovery exchangers £25k 2 yrs Repair / reinstate wash heat recovery exchangers on keg plant Condensate return £30k 2 yrs Current return is 40%, target 60% CO2 heat recovery £20k 5 yrs Currently a steam revap. Heat recovery to refrigeration Refrigeration £30k 2-5 yrs £21k Reducing condensing pressure of glycol plant. £16k Replace FV heat exchangers and increase chilled well water temp. Refrigeration heat pump £198k 6 yrs Refrigeration heat recovery to provide heating needs of tunnels pasteurisers. If RHI rules change payback enhanced.

9. Water Water self-evidently a critical ingredient for the brewing process – making up c.95% of the final product Tends to be low cost in relation to energy – lower priority but still a big issue 39% increase in water efficiency since 1990 Over three-quarters of water used is extracted from boreholes, rest bought in from municipal supplies Attempts by Government to change the way that water is extracted – including a proposed trading scheme To address extreme shortages in key areas Around 54% of water used is fully treated before returned to water streams; remainder is sent off-site to be treated Significant costs associated with disposal – BBPA exploring ways to reduce effluent costs with expert consultants

10. Water consumption

11. Packaging Ongoing evolution of packaging to reduce environmental impact Draught beer (returnable kegs and casks!) held up as ultimate example of ‘circular economy’ Lightweighting of bottles and cans ongoing – UK brewers leading the way Battle of the family brewers for lightest bottle that delivers product safely whilst ensuring quality Adnams now has lightest 500ml beer bottle – at just 280g – Robinson’s had previously claimed the record Project running from 2008 with WRAP - http://www.wrap.org.uk/sites/files/wrap/Delivery%20rightweighted%20bottles. pdf Packaging taxes can add significant costs to brewers – BBPA set up packaging compliance scheme, Sustain, to reduce costs across the industry

12. Sustain - Principles of the scheme Delivering compliance for members Provides the lowest cost through not-for-profit Full transparency Reduce the administrative burden on companies Investigate at wider issues that can help to reduce the waste burden on members

13. Packaging waste savings

14. Waste Aiming for zero waste to landfill Major reductions in waste ‘disposed of’ Fall of nearly 90% in waste disposed of in eight years Data from EA returns show considerable variability! Some waste difficult to recycle – ie asbestos from any kind of demolition

15. Environmental management EA assesses risk based on management systems – for sites that are required to have an environmental permit Last two years have seen brewers move out of the ‘risk’ level Core part of compliance and improving business performance – leads to savings Small brewer system developed by BBPA with EA - archived sitearchived site

16. Pubs Energy and resources used in pubs are significant Historically difficult to influence pub use – but ESOS gave unprecedented insight BBPA worked with consultants to present data and opportunities back to licensees – process remains ongoing Identified five key areas –Catering –Lighting –Heating –Cellar –Accommodation Developed individual fact sheet for each area

18. Fact Sheets - Making it Simple Fact sheets provide a guide for licensees Identify the key areas for focus Straight-forward approach –Facts –Did you know? –How does this apply to me? –How do I make the saving?

19. Example Fact Sheet - Cellar Around 5-15% of total energy usage Remote cooler controls Insulation Separating heat generating equipment Maintenance Cellar-free coolers Equipment replacement

20. What next for beer and the environment? Reform of business taxation landscape – very significant increases in Climate Change Levy from April 2019 Challenging targets for Climate Change Agreements – additional business costs if not continually improving energy efficiency Government looking to set ‘decarbonisation roadmaps’ for each sector to 2050: -BBPA working with DECC about how this can be delivered – will throw up challenges, such as moving to electrification of heat BBPA continuing to provide support to its members through audits and benchmarking Looking at other schemes that can save money and improve the environment Sharing best practice more widely Working through Brewers Research Education Fund (?) to promote environmental projects

21. CHALLENGES AHEAD MEAN THIS WILL BE A PRIORITY AREA FOR ALL BREWERS IN THE YEARS TO COME For further information on BBPA environment policy and activities please contact David Sheen - dsheen@beerandpub.comdsheen@beerandpub.com