A Change is Brewing: Carlsberg Commits to Regenerative Farms

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A bottle of KOFF, one of Carlsberg's brands. KOFF has been brewed with regeneratively grown barley since 2022
Global beer giant Carlsberg commits to 100% regeneratively farmed grains by 2040, setting a new standard for sustainable brewing

The Carlsberg Group has announced an ambitious target to source all its grains from regenerative farming practices by 2040, a commitment that the group hopes will set a new benchmark for sustainability in the beverage sector.

Regenerative farming is a holistic land management philosophy that focuses on improvements to soil health, biodiversity levels and carbon sequestration capacity.

Recently, this approach to farming has started to gain traction, as governments, companies and producers attempt to mitigate climate change.

Barley is a key ingredient for Carlsberg's products, maintaining healthy yields will be crucial to its future success | Credit: nakae

Why Carlsberg wants to regenerate

For Carlsberg, this shift represents more than just an environmental initiative – it's a fundamental reimagining of the company’s supply chain and product lifecycle.

In a blogpost, Carlsberg’s Global Head of Sustainability & ESG, Simon Boas Hoffmeyer, wrote: “Beer is an agricultural product, after all.

Simon Boas Hoffmeyer, Global Head of Sustainability & ESG at Carlsberg Group

"The barley, hops and other grains we use to brew our beverages come from farms, and the way those farms are operated and managed has a tremendous impact on the planet."

The potential benefits are of regenerative farming are substantial, with a 2022 World Economic Forum report suggesting that if just 20% more farmers in the EU adopted more sustainable agricultural practices by 2030, agricultural greenhouse gas emissions could be reduced by an estimated 6%.

What's more, the farmers could get a huge financial boost, with forecasted increases of between US$2.1bn and US$10.3bn annually by 2030.

The challenges of regenerative farming

However, the transition to regenerative farming is not without challenges.

Farmers face immediate costs and uncertainties in shifting from conventional methods. 

Questions about funding, technological support and standardisation of practices across diverse climates and soil conditions are also concerns in the industry.

The beverage industry, particularly brewing, faces unique sustainability challenges. Water scarcity, energy-intensive production processes and agricultural supply chains all contribute to the sector's environmental footprint.

Water scarcity is just one of many environmental challenges that put producers at risk | Credit: UN Photo

Carlsberg’s response to challenges

Despite the environmental challenges, Carlsberg is already making progress.

In Finland, the company's KOFF Christmas Beer has been brewed with regeneratively grown barley since 2022, with the scope expanding each year. 

In Laos, Carlsberg is collaborating with local farmers and a national research institute on a regenerative rice farming project, to sustainably source the rice needed for its Beerlao Gold brand.

In his blog, Simon says: "The farmers in this programme tell us that they hear more birds chirping and cicadas buzzing near the fields than they have in years past – an anecdote they attribute to the reduction in pesticides and promotion of soil health.”

Carlsberg is investing in sustainable, regenerative rice farming in Laos

How will Carlsberg scale up regenerative projects?

Collaboration is key to Carlsberg’s goals. The Danish brewer is collaborating with the SAI platform and the World Economic Forum's First Movers Coalition for Food.

However, Carlsberg recognises that broader cooperation is necessary, calling for engagement from "farmers, traders, customers, suppliers, politicians, NGOs, academics" to drive a more substantial uptake of regenerative farming across the board.

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This collaborative approach aligns with Carlsberg's ESG programme, aptly named "Together Towards ZERO and Beyond". In his blogpost, Simon acknowledges that achieving their 2040 target requires "spearheading a level of collaboration that simply doesn't exist today."

He concludes his writing with a rallying cry that could ring across the farming industry: "Let's figure out how to put the pieces together and set ourselves up for a resilient future of agriculture. It's time!"

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