Lion was the proud recipient of the inaugural Best Environmental Sustainability Initiative Award at the 2024 Australian Drinks Awards in August this year.
This revamped award, recognises organisations that lead in environmental sustainability by reducing their environmental impact and enhancing the community in which the business operates. It commends initiatives that promote environmental responsibility, including climate action, sustainable packaging, circular economy practices, waste reduction, water stewardship, biodiversity and land use management, and clean energy production.
Lion’s winning submission detailed the company’s achievement in reaching 100% renewable electricity procurement for all Australian operations in 2023, and exceeding its near-term Science-Based Target for carbon reduction seven years ahead of schedule.
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We took the opportunity to chat with Rebecca Lion, Lion’s Sustainability Leader and the Chair of the Drinks Association’s newly established Sustainability Council, to find out more about Lion’s incredible sustainability achievements over the past year.
What does achieving 100% renewable electricity mean for Lion’s sustainability strategy, and how does it position your organisation within the broader brewing/drinks industry?
Climate change is the biggest threat facing humanity, and its implications for our industry and the communities who support our business are devastating.
There is a very small window of time in which to act, and Lion is leading. We set a Science-Based Target of 55% reduction in scope 1 and scope 2 emissions by 2030 from a 2019 baseline. We have also a 30% scope 3 reduction aligned to the same timeframes. We have committed to a net-zero value chain by 2050.
By procuring 100% renewable electricity across our Australian operations, we have achieved these Science-Based Target seven years ahead of target.
Lion achieved its Science-Based Target for carbon reduction seven years ahead of schedule. Could you share the key strategies and initiatives that helped you surpass this target so early?
Our path to reduce carbon emissions has included various initiatives including network consolidation, energy efficiency projects, biogas production, rooftop solar installations at our XXXX, Little Creatures Geelong, Stone & Wood Murwillumbah breweries, and Four Pillars distillery as well as the renewable power purchase agreements (PPA) in NSW and Queensland.
In addition to nearly eliminating Scope 2 emissions, how does Lion’s commitment to renewable electricity impact other areas of the company’s environmental and operational goals?
Lion was the first large scale brewer to achieve this milestone so it’s a great example to the industry on what’s possible on climate action. It’s worth noting too our first PPA in NSW was a joint project with the AHA and included over 200 pubs and clubs – so the first example of an industry aggregated PPA. From a technical standpoint, there is increasing opportunity to electrify brewery equipment to replace natural gas, so we’re hopeful this clean source of energy becomes the foundation for future heat requirements. For example, in New Zealand, we’ll commission our first electric boiler next year.
Lion’s award submission noted the importance of demonstrating a commercially viable model for material carbon reduction. How has Lion been able to maintain financial viability while achieving its ambitious sustainability goals?
Our early decarbonisation projects delivered the required return; however, as the so called “low hanging fruit” has been picked, we are required to be more creative on the next phase of projects; this includes relaxing some financial hurdles, seeking Government funding (which is supporting the electric boiler in New Zealand) and using our internal carbon price, which is a welcome side effect of being a Climate Active certified carbon neutral organisation.
How did Lion’s team and cross-functional collaboration contribute to this achievement, and what role does company culture play in supporting environmental leadership?
Lion has long history of delivering authentic and credible sustainability outcomes which creates a high level of engagement and passion. We are grateful to have support from other functions such as finance and procurement which is becoming increasingly important as we turn our focus to scope 3 emissions. Last year we saw Marketing take a big step with the “Give a XXXX for the Planet” campaign and the Great Barrier Reef Foundation partnership.
Looking forward, what further steps does Lion plan to take to continue advancing toward its net zero supply chain and broader sustainability objectives?
Along with relentless focus on energy efficiency, we continue to evaluate new technologies such electric boilers and heat pumps as well as exploring the increased utilisation of biogas currently generated onsite at Tooheys and XXXX breweries.
We are also collaborating closely with our suppliers on opportunities to reduce our scope 3 emissions. Our recent project with the Australian Climate Leaders Coalition presented at COP27 demonstrated the importance of collaboration along the value chain to address the climate challenge.