Why Craft Brewers Should Look Outside the Brewery Wall for Sustainability Solutions

Beverage Dynamics reported that “Millennials and Gen Z are speaking with their pocketbooks…. Sustainable production choices, quality ingredients and responsible employment practices are important: they cost more and consumers are willing to pay.”

Crafting a sustainable brew involves more than just internal practices. While renewable energy and heat recovery methods can reduce a brewery’s carbon footprint, a comprehensive approach includes supply chain emissions as well. Studies show that only about 20% of a craft beer’s environmental impact is due to internal brewery operations.

Scope 1 and 2 Emissions: The Brewery’s Impact

Scope 1 emissions are direct emissions from sources owned or controlled by the brewery, such as the CO2 from fermentation tanks and natural gas used in brew kettles. These emissions are directly manageable through operational efficiencies and technological upgrades, making them crucial for breweries aiming to reduce their environmental footprint.

Scope 2 emissions are indirect, resulting from the creation of purchased electricity, steam, heating, or cooling that the brewery consumes. For example, electricity powering brewing equipment and HVAC systems contribute to these emissions. Transitioning to renewable energy sources like solar or wind can decrease the carbon footprint and potentially reduce energy costs.

The New Belgium Brewing (NBB) Open Source Drink Sustainably GHG Accounting Tool is a valuable resource for breweries looking to manage Scope 1 and 2 emissions. This tool provides real-time tracking of energy use and emissions, offering actionable insights for reducing environmental impact and showcasing sustainability efforts.

Scope 3 Emissions: The Brewery’s Indirect Impact

Scope 3 emissions encompass all other indirect emissions in the value chain, including those from the production of purchased goods and services such as barley farming, malting, and malt distribution. These emissions are significant as they account for up to 25% of a brewery’s overall environmental impact.

In malt production, significant Scope 3 emissions arise from agricultural practices, the energy used in malting processes, and the logistics of transporting malt. Addressing these emissions is crucial for breweries that aim to enhance their sustainability practices beyond their immediate operations and energy use.

Proximity Malt has taken proactive steps to mitigate these emissions by working with farms interested in implementing sustainable practices that will reduce the emissions from agricultural practices.

Three Major Contributors to Scope 3 Emissions in Craft Brewing

Barley Farming produces (lots) of CO2e.

Barley grown on arable land using non-regenerative methods produces approximately 1,600 lbs CO2e per acre per year in greenhouse gas emissions. Adopting regenerative farming practices can offset these emissions. For example, by eliminating tillage, the producer can sequester 65% of these emissions (1,040 lbs CO2e per acre per year).
Additional methods, including cover crops, rotating in natural fertilizers, and utilizing livestock manure can sequester another 1,270 lbs CO2e per acre per year. In fact, if all the regenerative methods are implemented, a barley field could sequester 1.5X more carbon than it emits. Proximity Malt’s ReGenMalt farmers are actively engaged following practices that sequester more carbon.

Malting Processes are energy-intensive.

The malting process, especially kilning, is energy-intensive, requiring electricity, natural gas, and water. Malting one metric ton of barley can produce as much GHG-e as a passenger car traveling 690 miles. The water expenditure to produce 1.1 tons of finished malt is 1,320 gallons.

Proximity Malt has optimized the malting process, using precise process control and data collection, leading to better consistency and a reduced consumption of energy compared to industry standards.

Malt Logistics are often global.

Malt distribution nationally or even internationally significantly increases the carbon footprint of the beer. Many in the industry import malt from Europe or Canada, and along this supply chain are numerous touchpoints at ports, switchyards, and truck depots. Each transportation point adds miles to the route and subsequent carbon emissions, all while increasing the risk of transport delays.

Proximity Malt’s malthouses, strategically located near barley supply sheds, reduce transportation emissions and costs. This local sourcing strategy not only reduces emissions but also contributes to climate resiliency in the barley supply chain.

Conclusion

Craft brewers can significantly enhance their sustainability efforts by extending their focus beyond internal operations to the entire supply chain. By partnering with Climate-Smart suppliers like Proximity Malt, breweries can address Scope 3 emissions that contribute significantly to their environmental impact and align with consumer demand for sustainably made products.

Download our ebook “ReGenMalt Impact Analysis: Enhancing Brand, Community Impact, and Sustainability” to learn how regenerative practices and a shortened supply chain will become pivotal for craft brewing