Our Raw Materials
Managing Raw Materials
Raw materials, including agricultural and fiber-based materials, as well as processing, account for approximately 25% of our total greenhouse gas emissions. This makes sourcing and production practices important focus areas in our efforts to manage our impact on nature, biodiversity, and ecosystems.
Water is our most important raw material and is essential to both our production and cleaning activities. While our production sites are not located in high water-risk areas, access to clean water remains important to our operations and the communities around us. We therefore focus on responsible water use and water management across our sites.
Sourcing Practices
As a company reliant on FLAG (Forest, Land, and Agriculture)-based raw materials, we are committed to zero deforestation and sustainable agriculture. We prioritize suppliers who meet international standards and, where possible, apply regenerative practices.
More than 80% of our raw materials are sourced from Europe, which supports our work to manage supply chain risks and compliance. We work to further strengthen our responsible procurement efforts and continue building transparent value chains with a strong focus on materials from high-risk regions. This includes expanding our due diligence processes and increasing our positive impact over time.
Supplier Code of Conduct
Our approach to sourcing is guided by our Business Ethics Policy and supported by requirements set out in our Supplier Code of Conduct.
We prioritize circular design, renewable resources, and expect that our suppliers of agricultural raw materials adhere to sustainable practices, including regenerative and conservation farming methods, along with relevant certifications.
Commodity risks
Ensuring a stable supply of high-quality ingredients and packaging is vital for our beverage production. At the same time, managing commodity risks, particularly for raw materials like malt, sugar, hops, packaging, and energy, is critical.
We hedge these risks commercially and financially in line with our Commodity Risk Policy, aiming to minimize price fluctuations' impact on earnings and cash flow, hereby ensuring financial stability.