Complexity Can Be a Blessing, says Asahi Sustainability Lead

“We were having debates in our boardrooms; chairs were flying. Is this good? Is this not good?” 

For Preeti Srivastav, Group Head of Sustainability at Asahi Group Holdings, moving to renewable energy was not a quiet change. Instead, it was a period of intense activity.

Asahi, a Japanese food and drink company, makes some of Europe’s best-known brands, including Peroni Nastro Azzurro, Grolsch, and Pilsner Urquell.

However, Asahi’s global portfolio brings both challenges and opportunities for sustainability.

Unleashing renewables in Europe

In Europe, Asahi has 19 production sites in nine countries. Starting in 2025, all electricity used at its European breweries will come from renewable sources.

“I still remember it was six or seven years ago when we signed up to RE100 and we started taking renewable energy seriously,” says Preeti. 

“We came across a supplier in Poland, we actually started the negotiations, and it was cheaper than the cost of the fossil fuel-based electricity in that country at that time. 

“And then I had nothing more to add. That's the perfect business case when you can see it in real time in the market, rather than showing conceptual numbers. 

“We couldn't show that business case in every market, but what that did was it showed the potential of how volatile some of these prices are, how we had to be the first mover to be able to get the best terms and contracts and the best suppliers. 

“And with that, the dam burst, and we went 100% renewable electricity for all our breweries here in Europe.”

Asahi’s sites in Japan and Australia have also switched and now run entirely on renewable energy. 

Mapping the journey

However, Asahi’s move to renewables and sharing that progress with the public has not always been easy.

“We put a little windmill as a logo in Poland once we got 100% renewable electricity and we thought that was a very proud moment,” Preeti explains. 

“And then turns out it was misleading because then the questions were, ‘Oh, are you 100% renewable energy?’ 

“And I said, ‘No, just the electricity part.’ You see, there is a heat part to it as well, which we haven't done.

“And I realised how complicated it is to be able to take all of this good work that we're all doing and put it in a 2 x 2cm square area on the product, or to be able to say it to a consumer in two or three sentences.”

After the confusion in Poland, Preeti says the company began a more complete review of its sustainability achievements.

“That's when we started this brand mapping journey. We're looking at every brand to say, ‘Do you have something to say on sustainability? If yes, does your legacy allow you to speak about sustainability? If yes, then which markets do you operate in and do those markets care about what you can say?’ 

“And based on that flow, we've been able to do a lot of good work.”

Creating new opportunities

To ensure sustainability was part of everything they do, Asahi built accountability into its core business processes, Preeti explains.

The finance team set up an internal carbon price to measure the environmental impact of every investment. Senior leaders’ bonuses were also linked to meeting sustainability goals.

These changes created new ways for Asahi to earn revenue in a circular economy. One example is their carbon-capturing vending machines in Japan and Australia.

The machines’ carbonate waste is reused and sold for use in construction and coral reef restoration.

“Completely different ball game, new revenue stream for us,” says Preeti, who was speaking with Helen Clarkson, CEO of The Climate Group, at the Opportunity Summit during London Climate Action Week. 

Embracing the complexity

For Preeti, operational complexity is not just a challenge. She sees it as a strategic advantage.

Running over 100 brands in different countries and product categories makes Asahi’s business dynamic.

“There is beauty in that complexity,” says Preeti.

“There is so much joy to be able to do something well and fast in one market and learn from it and then do it even better in the next month. So I think it's a gift to be able to operate in so many geographies. 

“It's a gift to be able to do something in the beer industry and then try to do it in the soft drinks industry. It's really interesting to look at packaging we can use in food, but maybe not in alcoholic or non-alcoholic beverages. 

“I think the complexity actually gives us enough room to manoeuvre to be able to try and experiment more than if we were just in one area or one geography.”