How is the Finance Function Boosting ESG at Carlsberg?

The current financial season presents a crucial opportunity for companies to align their strategies with the new Corporate Sustainability Reporting Directive (CSRD). 

This directive demands more comprehensive and transparent reporting on environmental, social and governance (ESG) factors – pushing businesses to look beyond financial performance.

By embedding ESG considerations into financial planning and reporting, companies can ensure compliance with CSRD, while demonstrating their commitment to sustainable business practices. 

This approach enhances transparency and accountability and positions businesses to capitalise on the growing demand for sustainable investments.

The business potential of ESG

CFOs and finance teams have traditionally been regarded as financial stewards, responsible for managing risks, evaluating investment opportunities and guiding companies through economic uncertainty. 

However, these same skills are essential for embedding and accelerating ESG into corporate decision-making.

The Business & Sustainable Development Commission estimates that sustainable business solutions represent a US$12tn (almost £9.5tn) opportunity by 2030.

As organisations strive to capture this potential, many are making significant investments in decarbonisation, circularity and ambitious ESG targets to meet rising demand.

Unlocking the opportunities of the green transition requires a rigorous approach to measuring and tracking ESG performance. 

Ensuring that ambitious targets translate into consistent, strategic action is the next challenge in embedding sustainability at the heart of business operations. 

This is where CFOs can be ESG’s strongest allies.

“We have made great strides in recent years to weave ESG into the fabric of the business, ensuring that this essential work gets properly measured, tracked and embedded into our business planning processes.” says Ulrica Fearn, CFO at Carlsberg Group. 

“Launching our first combined Annual Report is a great milestone on this journey, and a key enabler for reaching our targets.”

Sustainability and finance at Carlsberg

Carlsberg is actively integrating sustainability into its financial strategy, showcasing how finance and ESG can work together to drive measurable impact. 

The company’s sustainable finance team plays a pivotal role in bridging the gap between finance and sustainability – ensuring that ESG targets receive the same level of scrutiny and transparency as financial performance.

“Our performance in 2024 is due in large part to the long-standing commitment to our ESG agenda, and our focus on creating impact through partnerships and collaboration,” says Simon Boas Hoffmeyer, VP Sustainability & ESG at Carlsberg Group.

“A prime example is in the area of packaging.

“We could not achieve a 76% collection and recycling rate of our bottles and cans without years of hard work in industry-wide partnerships for efficient deposit return schemes and recycling infrastructure across our markets. This is really what we mean when we say Together Towards ZERO and Beyond,” 

The ESG approach is embedded in Carlsberg’s Together Towards ZERO and Beyond (TTZAB) strategy, which has already delivered tangible results. 

Since 2015, the company has reduced CO₂ emissions by 59% across its breweries and improved water efficiency by 31%. 

A prime example of this strategy in action is the Fredericia brewery in Denmark, which has saved one billion litres of water over two years by reusing 90% of treated water. 

While such efficiency measures require substantial investment, they generate immediate cost savings and enhance resilience in water-scarce regions.

The path to a sustainable business

Carlsberg’s commitment to long-term sustainability extends to regenerative agriculture, a growing focus area. 

The company aims to source all raw materials from regenerative farming by 2040, a strategy designed to build healthier, more resilient soils that can better withstand climate-driven challenges such as storms and droughts. 

Carlsberg is committed to transitioning to regenerative agriculture, prioritising collaborations to make this transition swifter.

“At Carlsberg Group, we are committed to driving the transition to regenerative agriculture, but we can’t do this alone. By collaborating with Boston Consulting Group (BCG) and One Planet Business for Biodiversity (OP2B), we aim to create a resilient food system that benefits people and the planet.” comments Simon.

“Our Sowing Change report outlines actionable recommendations to help the transformation of European agriculture, restore soil health, protect nature, and reduce emissions.”

Carlsberg has already introduced products using regenerative raw materials in the UK, France and Finland.

The company is planning to launch a speciality beer in Denmark by the end of 2025, brewed entirely with regeneratively grown ingredients.

While still in the early phases, Carlsberg believes that with the right integration, commitment and financial backing, regenerative farming will scale significantly in the years ahead.

By fostering closer partnerships between finance and sustainability, companies can future-proof their operations, deliver stronger ESG outcomes and contribute to a more sustainable, climate-resilient economy.

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