Recently, San Miguel Brewery Hong Kong (00236) released its Environmental, Social and Governance (ESG) Report 2024 to communicate to stakeholders its sustainability efforts in 2024.

(Image source: San Miguel Brewery Hong Kong ESG Report 2024)

San Miguel Brewery Hong Kong is the only international brewing company with a large brewery in Hong Kong. Its Yuen Long brewery not only produces beer for the local market, but also exports to international markets.

The company selects key ESG elements through its Sustainability Committee, taking into account the company's core objectives and values, regulatory requirements, high-risk assessment, and inputs from its Crisis Management System, as well as ongoing communication with internal and external stakeholders.

According to the report, San Miguel Brewery Hong Kong's greenhouse gas emissions total 10,486 tons in 2024 (+2.1% year-on-year) due to increased production. The company has taken a number of measures to make the transition to low carbon:

- Replacing biogas with diesel in the boiler in 2024 (no additional energy is required to further process the biogas) should result in a net benefit that shows an efficiency gain equivalent to 30,864 liters of diesel, which is projected to reduce GHG emissions by 80 tons.

- To promote a greener environment through the use of renewable energy, the company has embarked on a solar energy project in mid-2024, which will see the installation of 3,406 solar panels at the Yuen Long brewery. The first phase of installation started in December 2024 and the whole project is expected to be completed by the end of the second quarter of 2025.

- Wheat residue accounts for 97% of the company's total non-hazardous waste, of which about two-fifths is recycled. In 2024, a total of 3,243 metric tons of wheat dregs and spent yeast have been delivered to the Organic Resource Recovery Centre (ORRC), Tai Po Sewage Treatment Plant and Sha Tin Sewage Treatment Plant, i.e. reducing carbon dioxide emissions equivalent to about 2,119 metric tons. In addition, a total of 146 metric tons of wheat dregs have been transported to the CityU Farm for use as cattle feed.

- The disposal of glass beverage bottles has been identified by the Hong Kong Government as a major environmental issue. The company has registered as a registered supplier under the Producer Responsibility Scheme on glass beverage containers (GPRS) and has fulfilled its statutory obligations under the GPRS. In 2022, the company invested in the redesign and lightweighting of some of its glass bottles to reduce their environmental impact in terms of raw material consumption or CO₂ emissions. Production of these lightweight glasses began in 2023. In 2024, this measure succeeded in reducing the use of 511 tons of glass in the production process. At the same time, tests are underway for the thinning of aluminum cans with the aim of reducing the use of aluminum in the future.

In terms of social responsibility, San Miguel Brewery Hong Kong has been certified as a certified signatory to the Good Employer Charter in 2024, has been awarded the Happy Company 5+ logo by the Hong Kong Enhancement of Happiness Index Fund and the Productivity Council, and has been commended by the Mandatory Provident Fund Schemes Authority as a Good Employer for Provident Fund in 2024. The company provides a diverse range of internal and external training programs for its employees at its own expense; in 2024, the proportion of employees trained reached 87%, with an average of 14.1 hours of training.

In supply chain management, in 2024, in order to manage and/or identify environmental and social risks in the supply chain, the company is actively re-communicating with all active strategic suppliers to ensure that they are aware of the company's Supplier Code of Conduct.

In terms of product responsibility, the company is ISO9001 and ISO22000 certified and also promotes sensible drinking and serving of alcohol. As of December 31, 2024, 70% of the company's employees have completed the “Sensible Drinking” online training course provided by the Hong Kong Association for the Promotion of Rational Drinking (FReD) and obtained the Sensible Drinker Certificate.

While San Miguel Brewery Hong Kong's ESG practices are already at the forefront of the industry, there is a need to continue to discipline carbon intensity and focus on areas such as deep carbon reduction in the supply chain.

Author: Qinger