Evaluating the Greenhouse Gas Emissions in the Craft Beer Industry: An Assessment of Challenges and Benefits of Greenhouse Gas Accounting

Abstract

A growing number of companies in the brewery industry have made commitments to measure and reduce their greenhouse gas (GHG) emissions. However, many brewers, particularly craft brewers with relatively low rates of production, have not made such commitments. The purpose of this research was to investigate the challenges and benefits of measuring and reducing GHG emissions in the craft brewery industry. The research was conducted in Ontario, Canada, which has seen strong recent growth in the craft brewery industry. A case study and semi-structured interviews among Ontario Craft Brewers were conducted. The case study found that indirect (scope 3 GHGs under the WBCSD & WRI GHG Protocol) GHG sources accounted for 46.4% of total GHGs, with major sources from barley agriculture, malted barley transportation, and bottle production. Direct emissions (scope 1) accounted for only 14.9% of GHGs, while scope 2 emissions, comprised mainly of energy consumption, accounted for 38.7% of GHGs. The case study used case company primary data, and secondary data such as emission factors from external sources. The case study and interviews found that the main challenges in calculating brewery GHGs are secondary data availability, technical knowledge, and finances. The semi-structured interviews, which used prepared interview questions and probes to encourage follow-up answers, also found that the main benefits for Ontario breweries to measure their GHGs include sustainability marketing and preserving the environment. The interviews also found a poor understanding of carbon regulation among Ontario Craft Brewers, which is interesting considering that Ontario implemented a provincial cap and trade program in 2017.

Craft beer: An overview

“…Operational environmental impacts concern the resource consumption during the brewing step. Downstream environmental impacts include transport of beer from the brewery to consumers (Shin & Searcy, 2018). In the life cycle of a typical Italian lager beer produced by a small brewery, fossil fuel consumptions, land use, and inorganic emissions represent the most critical impact categories, while the highest environmentally impacts are referred to the steps of barley cultivation, glass bottle production, and beer consumption (Cordella, Tugnoli, Spadoni, Santarelli, & Zangrando, 2008; Talve, 2001).…”

“…The amount of the direct emissions was only 14.9% of total GHGs. Emissions due to heating and cooling operation accounted for the 38.7% of GHGs, while the other indirect emissions contributed to 46.4% of total GHGs with the main sources represented by barley agriculture, malted barley transportation, and bottle production (Shin & Searcy, 2018). LCA studies are largely used to quantify the so‐called carbon footprint (CF), that is, an indicator of the total amount of direct and indirect emissions of carbon dioxide (CO 2 ) and other GHG, expressed as carbon dioxide equivalent (CO 2 eq).…”