MBA Part Time Saturday Class of 2014
BUSA 7010: Ethics, Governance and Sustainable Development
South African Breweries: Environmental Policy
Lecturer: Stuart Woolman
Assignment presented by:
Word count: 1,187 (excl. Title Page, Table of Contents & References) Pages: 6 (excl. Title Page, Table of Contents & References)
Table of Contents
South African Breweries Environmental Policy
Analysis of Literature and Findings
The environment in South Africa is fairly fragile within the context of water and electricity. The CIA (2013) describe South Africa as a country which has a semi-arid climate and has a natural hazard of prolonged droughts. The CIA World Fact Book further illustrates that South Africa is ranked the eighteenth biggest consumer (by country) of electricity globally. 90% of South Africa’s electricity is derived from coal burning power stations (EIA, 2013). It follows that national, corporate and community efforts toward environmental conservation are particularly important to South Africa, especially with regard to water and electricity. South African Breweries (SAB), is a subsidiary of SAB Miller plc, and contributes 22% EBITDA to the group. Its primary business is the brewing and bottling of beer for domestic and global consumption. SAB sources locally produced ingredients and processes to produce beer products (SABMiller, 2012a). SAB has ten priorities for sustainable development where four are related to environment conservation (SAB, 2013). 2. Literature Review
Beer is a water intensive product, meaning that it consumes a vast amount of water to be produced. Life cycle assessments of brewing indicate that one litre of beer requires up to seven litres of water to be produced (Talve, 2001) (Koroneos, Roumbas, Gabari, Papagiannidou, & Moussiopoulos, 2005). Talve (2001) highlights the area of beer production that consume the most amount of water, which are agriculture, brewing, cooling and bottle washing. Energy consumption occurs throughout the lifecycle of beer production. Brewing accounts for approximately 6.1% of total energy consumption, and bottle production for 85% (Koroneos et al., 2005). Within the brewery there are also significant volumes of energy usage; i.e. approximately 0.15 MWh in total (Talve, 2001).
Figure [ 1 ] - Beer Lifecycle Energy Consumption (Koroneos et al., 2005) Figure [ 2 ] - Brewery Energy Consumption (Talve, 2001) Thus, the primary areas of reducing energy consumption for SAB would reside in the bottle production and brewing areas of the product lifecycle. However, energy losses occur throughout the larger lifecycle of beer production. Figure 3 shows the entire lifecycle process of beer production. Transportation, storage and distribution accounts for ancillary energy consumption (Talve, 2001) which not clearly identified on SAB’s website and sustainable development content. This would include vehicle emissions (supply chain transportation), capital costs (manufacture, maintenance and decommissioning of capital equipment), and other general infrastructure processes.
Figure [ 3 ] - Lifecycle of Beer Production (Talve, 2001)
Further, the environmental impact of beer production extends further than water and energy conservation efforts. Other areas are the greenhouse effect, ozone depletion, acidification, eutrophication, smog formation, and earth toxicity (Talve, 2001) (Koroneos et al., 2005). The inputs and outputs of the system, contributing to the above pollution effects are, “agricultural processes (irrigation, fertilization, erosion, etc), cultivation and harvesting of the barley, malting, beer and auxiliary material production, packaging (including washing of refillable glass bottles) and transportation” (Talve, 2001). 3. South African...
References: CIA. (2013). CIA - The World Factbook. The World Factbook Retrieved 19 February, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/sf.html
EIA. (2013). South Africa: Environmental Issues Retrieved 19 February, 2013, from http://schoolnet.org.za/CoL/ACE/course/ukzncore2a/documents/core2a.south_africa.htm
Koroneos, C., Roumbas, G., Gabari, Z., Papagiannidou, E., & Moussiopoulos, N. (2005). Life cycle assessment of beer production in Greece. Journal of Cleaner Production, 13(4), 433-439.
SAB. (2013). SAB Limited - Sustainable Development Retrieved 07 February, 2013, from http://www.sab.co.za/sablimited/content/en/sustainable-development
SABMiller. (2012a). 2012 Annual Report: SAB Miller plc.
SABMiller. (2012b). Working toward zero waste operations. sabmiller.com: SABMiller.
Talve, S. (2001). Life cycle assessment of a basic lager beer. The International Journal of Life Cycle Assessment, 6(5), 293-298.
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