From Darden to Decarbonization: Virginia Covo’s Sustainability Journey

How AB InBev is cutting carbon across brewing and logistics

Virginia Covo leads climate action at Anheuser-Busch InBev, the world’s largest brewer. Her approach shows how large manufacturers can reduce emissions through internal collaboration rather than external consultants telling people what to do. Consequently, AB InBev has cut absolute Scope 1 and 2 emissions by 44% since 2017 while working systematically through supply chain challenges.

This matters for UK businesses because it demonstrates practical decarbonization in a sector with complex logistics. The brewing industry faces similar carbon challenges to other manufacturers: energy-intensive production, distributed supply chains, and packaging emissions. Moreover, AB InBev’s methods for engaging suppliers and operational teams offer lessons for SMEs facing net zero targets.

Covo describes herself as a project manager rather than a sustainability expert. She works with brewers, logistics teams, and drivers to find efficiency improvements that also cut emissions. This method addresses a common problem in corporate sustainability programmes where targets get set at board level but operational staff lack ownership of the solutions.

AB InBev set science-based targets in 2015, among the first 100 global companies to do so. The company formalized its 2025 Sustainability Goals in 2018. These included a 35% absolute reduction in Scope 1 and 2 greenhouse gas emissions from a 2017 baseline of 5,490,000 tonnes of CO2 equivalent. Additionally, the company committed to sourcing 100% of purchased electricity from renewable sources by 2025.

Renewable electricity deals power European brewing operations

Western Europe achieved 100% renewable electricity for brewing operations in 2022. All Budweiser, Corona, and Stella Artois production in the region now runs on wind and solar power. AB InBev secured this through a 10-year virtual power purchase agreement with BayWa r.e. and Verbund, supporting projects including a 161-hectare solar park in Spain generating 250 gigawatt-hours annually.

The company extended this approach to suppliers in November 2023 through a partnership with South Pole. This initiative offers group-buying arrangements for renewable electricity, making power purchase agreements more accessible to smaller suppliers. The programme includes training and measurement support to help suppliers track their own emissions reductions.

For UK manufacturers, this shows how large buyers can use their purchasing power to accelerate supply chain decarbonization. Group-buying arrangements reduce the complexity and cost barriers that prevent smaller companies from accessing renewable energy contracts directly. Furthermore, shared measurement frameworks help suppliers demonstrate progress to multiple customers rather than responding to different reporting requests.

Scope 3 emissions account for 86.7% of AB InBev’s total carbon footprint. These value chain emissions fell 20.7% in intensity terms by 2023. The company created a platform called Eclipse to coordinate supplier collaboration on shared targets, measurement standards, and innovation projects. This approach recognizes that brewers cannot decarbonize supply chains through procurement pressure alone.

Packaging and transport pilots test emission reduction options

AB InBev is testing recycled glass packaging after 18 months of development work. Initial results show emissions reductions exceeding 30% compared to new glass production. Glass manufacturing is energy-intensive, so recycled content offers significant carbon savings. However, collection systems, quality standards, and supply availability all affect whether recycled glass works commercially at scale.

The company is also pursuing a zero-emissions fleet through partnerships with Nikola, BYD, and Hyliion. These partnerships test different vehicle technologies including battery electric and hydrogen fuel cell options. Transport emissions vary significantly depending on route distances, payload requirements, and charging infrastructure availability.

For SMEs in manufacturing or distribution, these pilots demonstrate the importance of testing technologies before committing to fleet replacement. Electric vehicles suit some routes but not others. Meanwhile, hydrogen infrastructure remains limited in most UK regions. Companies need to match vehicle specifications to actual operational requirements rather than assuming one technology fits all applications.

AB InBev announced a net zero ambition across its value chain by 2040. The company committed to achieving this primarily through decarbonization rather than carbon offsets, following Science Based Targets initiative guidelines. This approach requires detailed roadmaps for reducing emissions across all three scopes rather than purchasing credits to compensate for continued emissions.

Progress against 2025 targets shows strong momentum

By 2023, AB InBev reduced Scope 1 and 2 emissions by 44% from the 2017 baseline. This exceeded the 35% target with two years remaining. Scope 3 intensity fell 20.7% against the 25% target. The company is on track to meet its 2025 commitments across most metrics. Consequently, attention has shifted to the 2040 net zero pathway and interim targets for the next decade.

The renewable electricity target is already complete in Western Europe and advancing in other regions. Solar and wind installations at production sites supplement power purchase agreements. This dual approach gives the company more control over energy costs while securing renewable attributes. It also reduces exposure to grid reliability issues in some markets.

These results show what large manufacturers can achieve through systematic programmes over multiple years. However, the scale of resources available to AB InBev differs significantly from typical SME capabilities. Smaller companies need to identify which elements of this approach transfer to their circumstances and which require different methods.

What this means for UK manufacturers and suppliers

• AB InBev cut absolute Scope 1 and 2 emissions by 44% between 2017 and 2023 through renewable electricity and operational efficiency.
• All brewing operations in Western Europe now run on 100% renewable electricity secured through long-term power purchase agreements.
• Scope 3 emissions represent 86.7% of total emissions, requiring supplier engagement rather than internal action alone.
• Group-buying initiatives launched in 2023 help suppliers access renewable electricity contracts at lower cost and complexity.
• Recycled glass packaging trials show emissions reductions exceeding 30% compared to new glass production.
• The company aims for net zero across its value chain by 2040, prioritizing decarbonization over carbon offsets.
• Fleet electrification partnerships test different vehicle technologies to match operational requirements across varied distribution routes.

How large manufacturers influence supply chain decarbonization

AB InBev’s approach demonstrates how major buyers can support rather than simply pressure suppliers. Traditional procurement methods set requirements and leave suppliers to work out compliance independently. This often fails because smaller companies lack the expertise, capital, or scale to implement solutions efficiently.

The Eclipse platform offers suppliers access to shared measurement tools, best practice guidance, and collaborative innovation projects. This reduces duplication where multiple suppliers face similar challenges. It also creates opportunities for joint purchasing of equipment or services that would be uneconomical for individual companies. Moreover, shared targets align efforts rather than forcing suppliers to juggle competing demands from different customers.

For UK SMEs supplying large manufacturers, this model suggests engaging proactively with customer sustainability teams. Companies that wait for requirements to become mandatory often face tighter deadlines and fewer support options. Meanwhile, early engagement can provide access to resources, training, or co-funding opportunities. It also influences how requirements get designed, potentially avoiding specifications that work poorly for your business model.

The renewable electricity group-buying initiative addresses a specific barrier for smaller suppliers. Power purchase agreements typically require volume commitments and credit terms that exclude companies below a certain size. Group arrangements aggregate demand to reach viable contract thresholds. This approach works for other inputs too, including recycled materials, low-carbon transport, or energy-efficient equipment where bulk purchasing reduces unit costs.

However, supplier collaboration requires careful management of commercial sensitivities. Companies need clarity about what information gets shared, how intellectual property protections work, and whether collaborative projects create dependencies on competitors. AB InBev’s Eclipse platform presumably includes governance frameworks for these issues, though details are not publicly available. SMEs should seek similar clarity before joining collaborative initiatives.

Internal engagement shapes operational emission reductions

Covo’s emphasis on working with operational experts rather than imposing solutions from sustainability teams reflects lessons from failed corporate programmes. Emissions reduction targets set by senior management often lack practical implementation pathways. Operational staff then either ignore the targets or implement token measures that achieve little real reduction. Consequently, companies report progress in presentations while actual emissions remain largely unchanged.

AB InBev’s model gives operational teams ownership of finding solutions within their areas. Brewers work on process efficiency. Logistics teams address transport emissions. Packaging specialists tackle material choices. This distributes problem-solving to people who understand the technical constraints and operational trade-offs. It also builds internal capability rather than creating dependency on external consultants.

For UK SMEs, this approach requires structured processes to collect ideas, assess feasibility, and allocate resources. Informal suggestions often fail to progress because no clear mechanism exists to evaluate and implement them. Companies need regular reviews where operational staff present emission reduction proposals with cost and timeline estimates. Senior management then prioritizes projects based on impact, affordability, and operational risk.

Training helps operational staff understand how their decisions affect emissions. Many efficiency improvements that reduce energy, materials, or waste also cut carbon. However, staff may not recognize these connections without basic carbon literacy. Our SBS Academy training programmes help businesses build this understanding across operational teams rather than concentrating knowledge in a single sustainability manager.

Measurement systems need to provide operational teams with feedback on their actions. Aggregate annual emissions reports do not help staff understand which specific changes worked. Companies need to track emissions at process or facility level with monthly or quarterly reporting. This allows teams to see results from their initiatives and adjust approaches that underperform. It also maintains momentum by demonstrating tangible progress rather than waiting years for overall target assessments.

Government and industry resources on manufacturing decarbonization

The Department for Energy Security and Net Zero provides guidance on industrial decarbonization strategy and available support schemes for manufacturers. This includes information on capital grants for energy efficiency equipment and low-carbon technology adoption. The guidance covers eligibility criteria, application processes, and deadlines for various funding programmes.

UK Research and Innovation runs the Industrial Energy Transformation Fund supporting energy efficiency and deep decarbonization studies for industrial facilities. This scheme helps manufacturers assess technical options and develop detailed implementation plans. It covers feasibility studies, engineering designs, and deployment projects depending on the stage of development.

The Environment Agency publishes guidance on environmental management systems and emissions monitoring requirements for regulated facilities. This includes reporting obligations under various permitting regimes and how these relate to carbon reduction targets. Understanding regulatory requirements helps companies avoid duplication between compliance reporting and voluntary carbon measurement.

We help manufacturers develop practical carbon reduction programmes that integrate with operational management rather than creating parallel systems. This includes Scope 3 measurement for supply chains, supplier engagement strategies, and compliance with procurement requirements like PPN 06/21 for public sector contracts. Our approach focuses on actionable improvements tied to cost control and operational efficiency rather than reporting for its own sake.