Beam Suntory to invest $1bn into sustainability & diversity plans

In a bid to make a positive impact on the environment, consumers, staff and communities, Beam Suntory has announced bold plans to invest $1 billion into sustainability, diversity and responsible drinking.

The spirits company has sustainability ambitions to go beyond net-zero carbon emissions, reduce water use by 50% and achieve 100% watershed replenishment, invest $500 million to engage consumers to make responsible choices, foster greater diversity, equity and inclusion, and donate 1 million volunteer hours. Its latest programme Proof Positive is a long-term commitment to sustainability across every facet of its value chain, from seed to sip. These commitments to the environment, consumers and society are aligned to the United Nations’ Sustainable Development Goals (SDGs); and aim to create a more sustainable and equitable future for Beam Suntory and its stakeholders.

 “Making a positive impact on the planet, consumers and communities isn’t just the right thing to do; it’s a must-do for the sustainability of our business and humanity,” stated Beam Suntory President & CEO Albert Baladi. “Proof Positive is inspired by Suntory’s vision of Growing for Good and represents a step-change in our sustainability ambitions. Our quality products start with the blessings of nature, and we’re determined to give back to nature more than we use. We’re fundamentally committed to reducing harmful drinking, and we’ll increase investment to support consumers in making responsible choices. We’ll use our platform to advance diversity, equity and inclusion; and leave a lasting legacy for our teams, community and our industry. Proof Positive is a critical roadmap towards 2030, 2040 and beyond for how we will positively impact the environment, our consumers and our communities.”  

INCLUSIVE & EQUITABLE CULTURE

Baladi wants the company to foster a more inclusive and equitable culture, while increasing gender, racial and ethnic representation across its business; and continue to engage and support employees around the world to volunteer their time. Goals include:

• Three targets to achieve by 2030. They include reaching 50%  women in leadership positions globally, 45% racially and ethnically diverse employee representation in the US, and achieve an industry-leading sense of belonging among employees, by ensuring employees are evaluated equally on what they achieve against company goals.
• Contribute one million cumulative volunteer hours to communities around the world by 2030 and continuing to invest in initiatives and organisations that support on-trade partners, build stronger communities and promote social justice. 

The company also hired Victoria Russell as its first Chief Diversity & Inclusion Officer, in November last year as reported, to help achieve these goals.

POSITIVE WELLBEING CHOICES 

Beam Suntory also wants to continue to help consumers make positive choices for their personal wellbeing and impact. To further elevate its commitment to reducing harmful drinking and empowering consumers to make the right choices, the company plans to:

• Invest $500 million to promote responsible decisions and positively impact behaviour by significantly expanding responsibility-led brand communications, elevating the Drink Smart platform, and supporting evidence-based partner programmes. The company aims to engage more than 300 million consumers by 2030 with messages and tools designed to promote responsible decisions and reduce harmful drinking.
• Enable expanded choices by developing, introducing and investing in awareness of low- or no-ABV products in key categories, including whiskey, tequila, gin, vodka and ready-to-drink, by 2030.
• Provide nutrition and alcohol content information on packaging or online for 100% of products by 2030.  

NATURE POSITIVE SUSTAINABILTY 

Thanks to investment in efficient technology and cleaner fuels, Beam Suntory has reduced water use per unit of production by 22%; and reduced greenhouse gases emitted by direct operations by 19%. To further reduce its environmental footprint, Beam Suntory is setting bold targets focused on the environment, suppliers and packaging. New goals include:

• Reducing greenhouse gas emissions (GHG) by 50% across direct operations by 2030, with an ambition to remove more carbon than is emitted across the entire value chain by 2040. Notably, the Fred B Noe Craft Distillery, set to open later this year in Clermont, KY, will be the company’s first distillery powered by renewable energy; and Beam Suntory sites across the world have begun transitioning from higher carbon fuels, like coal and fuel oil, to lower carbon fuels, such as natural gas and liquefied petroleum gas. The company has also begun evaluation of options to transition to renewable fuels across distilleries globally. 
• Reducing water usage for every unit of production by 50% by 2030 and replenishing more water than what is used in direct operations to water sources, shared with local communities and nature, by 2040. Beam Suntory’s Natural Water Sanctuary Program is inspired by Suntory’s unwavering dedication to sustainable water quality. It reflects an ongoing commitment to protecting the source of water for future use in its spirits and for surrounding communities. Both Maker’s Mark and the James B Beam Distilling Co have established Natural Water Sanctuaries in Kentucky to protect local water sources that are vital to the crafting of bourbon. 
• Planting more trees than those harvested to make whiskey barrels. A commitment to plant 500,000 trees annually by 2030. With Beam Suntory’s iconic bourbon brands aging only in new charred oak barrels, the spirit maker is stepping up to ensure a sustainable source of American White Oak for future use in production; and to support sustainable forestry practices.  
• Working only with suppliers that use sustainable practices by 2040.  
• Using 100% recyclable packaging and 40% recycled materials by weight across the packaging portfolio by 2030.

Finally, Beam Suntory said it will disclose progress against its targets every year.