Carlsberg’s Chongqing Brewery Leads ESG Risk Management

December 02, 2024

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Chongqing Brewery is celebrated by one of the most recognised ESG ratings globally (Credit: Carlsberg)

Carlsberg’s company in China, Chongqing Brewery, has achieved an ‘AA’ MSCI ESG rating - making it a 'leader' in managing the most significant ESG risks

By integrating environmental responsibility, social equity and governance accountability, ESG is essential for organisations to embrace to drive long-term resilience in our pursuit of a better tomorrow.

Not only does crafting a strong ESG framework allow for organisations to meet regulatory demands and attract investors, it also allows them to gain a competitive advantage by ensuring that societal and environmental goals are aligned with profitability.

Chongqing Brewery (CBC) - Carlsberg’s company in China - has achieved an ‘AA’ MSCI ESG rating, one of the most recognised ESG ratings globally.

This achievement comes as a result of the brewery’s consistent dedication to ESG initiatives like responsible sourcing, water conservation, carbon reduction and packaging innovation.

CBC is now one of the two highest-rated companies out of over 120 listed companies in the category, making it a pioneer in the food and drinks industry.

Carlsberg Group Headquarters (Credit: Carlsberg Group)

What is the MSCI ESG rating?

Using a rules-based methodology, the MSCI ESG rating assesses an organisation’s ability to manage long-term, financially relevant environmental, social and governance (ESG) risks.

These ratings range from -

Leader (AAA, AA)
Organisations that lead its industry in being able to effectively manage prominent ESG risks and opportunities
Average (A, BBB, BB)
Organisations whose record of managing ESG risks and opportunities is mixed or unexceptional
Laggard (B, CCC)
Organisations that are behind in its industry and struggle to manage ESG risks

MSCI ESG ratings (Credit: msci.com)

Chongqing Brewery

Chongqing Brewery was established in 1958 and was listed on the Shanghai Stock Exchange in 1997.

Chongqing Brewery’s third-quarter report for 2024 highlights its ability to respond efficiently to evolving market demands.

The Foshan Sanshui production base was launched in August 2024 - the inaugural ‘air-conditioned brewery’ in China’s beer industry and the debut ‘sponge brewery’ of Carlsberg Group that recycles water entirely.

Chongqing Brewery’s achievement of receiving an ‘AA’ MSCI ESG rating secures its position as a key figurehead in the sustainable food and drink industry.

The brewery has highlighted its commitment to enhancing its ESG measures since joining the MSCI rating in 2020.

In 2023, the brewery received an ‘A’ rating - making it the highest-rated listed alcoholic drinks company in China. The recent ‘AA’ rating they have received means the brewery has now entered the ‘Leader’ category of the MSCI ESG rating.

Henrik Poulsen, Chair of the Board of Directors and the Nomination Committee at Carlsberg Group

Henrik Poulsen, Chair of the Board of Directors and the Nomination Committee at Carlsberg Group, states how "The commissioning of the Foshan Sanshui production base will promote the further development of Carlsberg in China and inspire Carlsberg's Chinese business to reach new levels of excellence at all levels."

Chongqing Brewery’s achievement of receiving an ‘AA’ MSCI ESG rating secures its position as a key figurehead in the sustainable food and drink industry.

The brewery has highlighted its commitment to enhancing its ESG measures since joining the MSCI rating in 2020.

The opening of Carlsberg's Foshan Sanshui brewery (Credit: carslbergchina.com.cn)

‘Together Towards Zero and Beyond’ (TTZAB)

Chongqing Brewery’s recent MSCI SG rating achievement comes as a result of its commitment to Carlsberg’s wider ‘Together Towards ZERO and Beyond’ (TTZAB) ESG programme.

Launched in 2022, the TTZAB programme outlines Carslberg’s plans to reach the ESG issues that impact both society and the company.