Carlsberg Group’s Annual Report Shows ESG Progress

Carlsberg’s latest annual report puts climate action into commercial context

Carlsberg Group published its 2025 Annual Report on 4 February 2026. The report covers a year of strong financial delivery alongside sustained environmental and social progress. For UK businesses, especially those selling into large consumer brands, the detail matters.

The report shows how a global drinks producer is tightening its climate, water, and packaging targets while managing market pressure. Consumer demand remained weak in parts of Europe. Input costs stayed volatile. Even so, Carlsberg increased revenue and continued to cut emissions.

For smaller companies, this matters for a simple reason. Large brands set expectations that flow through supply chains. When those brands publish clear data, targets, and deadlines, suppliers feel the effects first.

Carlsberg’s sustainability approach sits within its wider business strategy. The company frames climate and circularity as a way to manage risk and protect long term growth. That framing echoes what many UK SMEs now face from customers, lenders, and insurers.

The report also highlights the integration of Britvic, which Carlsberg acquired in 2024. Britvic has a large UK footprint in soft drinks, with brands stocked nationwide. Its inclusion brings added relevance for UK manufacturers, logistics firms, and packaging suppliers.

While Carlsberg operates at global scale, the pressures it describes are familiar. Energy pricing, packaging rules, water stress, and customer scrutiny affect firms of all sizes. The report offers a practical view of how one company is responding.

Rather than focusing on claims or slogans, the document gives measurable outcomes. These include emissions reductions, renewable energy sourcing, recycled content, and safety performance. For SMEs, this shows what good reporting now looks like.

Below, we break down the key developments from the report and explain what they mean for UK businesses.

Net zero, water, packaging, and alcohol targets guide group strategy

Carlsberg’s sustainability work sits under its programme called Together Towards ZERO and Beyond. The language is ambitious, but the structure is straightforward. It sets long term end points with interim milestones for 2030.

The headline climate goal is net zero greenhouse gas emissions across the full value chain by 2040. This includes raw materials, production, transport, cooling, and packaging. Operations only, known as Scope 1 and 2 emissions, are targeted for zero by 2030.

In reporting terms, Scope 1 covers fuel burned on site. Scope 2 covers purchased electricity and heat. Scope 3 covers upstream and downstream activities. Many SMEs are now being asked for this same breakdown by customers.

On water, Carlsberg aims to reach zero water waste. In practice, this means improving efficiency and replacing water used in high risk areas. By 2030, the company plans to replenish 100 percent of water consumed at breweries in water stressed regions.

Packaging is another central theme. Carlsberg targets zero packaging waste. By 2030, it wants 90 percent of bottles and cans collected and recycled. All packaging should be recyclable, reusable, or made from renewable materials.

The company also tracks social measures. These include health and safety, diversity in leadership, and access to safe drinking water. Responsible drinking sits alongside growth in low and no alcohol products, with a target of 35 percent of global volumes by 2030.

These commitments link directly to business resilience. Packaging rules are tightening. Water scarcity disrupts production. Energy markets remain exposed to shocks. Carlsberg treats these as financial risks, not just environmental ones.

The group also continues to sign long term renewable electricity contracts, known as power purchase agreements. New contracts in Sweden, Norway, and Finland support its 2030 operational climate target.

For UK SMEs, the key point is alignment. Large brands increasingly expect suppliers to follow similar structures, even if targets differ in scale.

What Carlsberg reported for 2025 with dates and measured results

The 2025 Annual Report was released alongside Carlsberg’s financial statements, remuneration report, and human rights report. All documents were published on 4 February 2026.

During 2025, the company reduced absolute Scope 1 and 2 emissions from production sites by 12 percent compared with the prior year. This reflects lower energy use and a higher share of renewable electricity.

Across its wider value chain, near term emissions fell by 8 percent on an organic basis. This includes farming, packaging supply, transport, and cooling equipment.

Renewable electricity reached 86 percent of total use across the group. Nineteen percent of this came from new renewable assets, up sharply from the previous year.

Packaging results were a standout feature. Recycled content across bottles and cans reached an average of 51 percent. This passed the company’s 2030 target five years early.

In addition, 95 percent of packaging by volume was recyclable, reusable, or made from renewable materials. Improvements came mainly from higher recycled plastic in PET bottles.

Water replenishment at high risk sites reached 32 percent during 2025. This was double the level achieved in 2024. Water efficiency also continued to improve across all breweries.

On agriculture, Carlsberg sourced 27,600 tonnes of regenerative barley. This represents about 2 percent of its total raw materials. Pilot projects continue in France, the United Kingdom, Finland, and Denmark.

Low and no alcohol products made up 31 percent of global volumes. This rose steadily from earlier years and supports the company’s social targets.

Health and safety performance improved again. Lost time injuries fell by 16 percent during the year. Since 2015, the reduction stands at 74 percent.

Diversity data showed that women held 34 percent of senior leadership roles by year end. This increased from 30 percent in the prior year.

Financially, group volumes rose by 17.7 percent, mainly due to the Britvic acquisition. Revenue increased by 18.8 percent. Organic operating profit grew by 5.0 percent.

Total dividends for the year reached DKK 3.8 billion, reflecting confidence in cash generation despite softer consumer demand.

Group Chief Executive Jacob Aarup Andersen described 2025 as a year of delivery. He noted that the Britvic integration is ahead of plan and strengthening the soft drinks portfolio.

Where these results affect suppliers, tenders, and operating costs

Large brands do not publish detailed sustainability results for interest alone. They use this data to manage risk and set expectations for others.

For suppliers, Carlsberg’s progress on recycled content is significant. Packaging producers, converters, and importers face higher demand for certified recycled materials. Price pressure is likely to follow.

Energy sourcing also affects suppliers. As Carlsberg locks in renewable electricity, it reduces exposure to volatile wholesale prices. Suppliers without similar plans may look less attractive on cost stability.

Water performance matters for agricultural and processing suppliers. Firms operating in water stressed areas may face stricter data requests and improvement plans.

Regenerative agriculture pilots point to future procurement standards. While volumes remain small, they doubled within a year. Suppliers in cereals and ingredients should expect tighter criteria over time.

Britvic’s integration brings these policies closer to UK businesses. Many UK SMEs already supply Britvic directly or indirectly. Reporting frameworks are now more closely aligned with Carlsberg group standards.

Sustainability data is also tied to tender scoring. Public sector and retail contracts increasingly include climate and packaging thresholds. Larger customers use supplier data to meet their own reporting duties.

There are cost angles as well. Early investment in recycled materials or energy efficiency can be expensive. However, late responses often cost more once requirements become fixed.

Health and safety performance is another signal. Improved accident rates reduce insurance risk and downtime. Buyers notice poor safety records.

Finally, low and no alcohol growth reflects changing consumer demand. Suppliers linked to traditional categories may need to diversify or adjust volumes.

The practical lesson is that corporate climate targets rarely stay inside the company. They travel down the supply chain.

Key points from the report that matter most to UK businesses

• Carlsberg cut operational emissions by 12 percent in 2025 and continues toward zero operations emissions by 2030.
• Renewable electricity now supplies 86 percent of group demand, reducing exposure to energy market swings.
• Average recycled content in bottles and cans reached 51 percent, ahead of the 2030 target.
• Packaging is now 95 percent recyclable, reusable, or renewable across the group.
• Water replenishment at high risk sites doubled within a year, reaching 32 percent.
• Regenerative barley sourcing expanded quickly, including UK pilot projects.
• Britvic’s UK focused operations are now fully within Carlsberg’s sustainability framework.

How SMEs can interpret Carlsberg’s approach in practical terms

At SBS, we see similar patterns across many large customers. Clear targets, measured progress, and supplier alignment now form the baseline.

Carlsberg’s report shows that ambition alone is not enough. Each goal is tied to data, deadlines, and governance. SMEs should expect to mirror this structure in a simpler form.

Start with understanding where your emissions sit. Many firms still lack a clear split between direct energy use and purchased electricity. Customers increasingly ask for this.

Packaging data is a fast moving area. Knowing recycled content, material types, and recyclability is now essential. Waiting for a formal request often leads to rushed and costly changes.

Water risk is often overlooked in the UK. Yet overseas suppliers and sites can affect contract stability. Mapping water exposure helps answer customer queries with confidence.

Where agriculture or raw materials are involved, pilot schemes offer early learning. Carlsberg’s barley trials show how standards evolve through testing, not sudden mandates.

Britvic’s inclusion also highlights system alignment. When groups merge, reporting expectations rise to the highest common level. SMEs supplying growing groups should plan for this.

None of this requires complex language or grand strategies. It requires clear records, honest data, and awareness of customer priorities.

We often advise clients to treat sustainability reporting as risk management. The aim is to reduce surprises, protect margins, and keep access to markets open.

For many SMEs, the first step is simply getting information in one place. From there, improvement becomes manageable.

This is the same path large brands followed, just at a different scale.

Authoritative sources covering Carlsberg’s disclosures and policy context

Carlsberg’s own Annual Report and sustainability disclosures provide detailed methodologies and data tables. These are available through the company’s investor and sustainability pages.

Wider policy context on climate targets and reporting frameworks can be found on the Department for Energy Security and Net Zero website, which sets out UK expectations for emissions reduction.

Guidance on carbon reporting for businesses is also available from the Carbon Trust, including explanations of Scope 1, 2, and 3 emissions.

For coverage of the Britvic acquisition and financial performance, reporting by the Financial Times provides independent analysis.

At SBS, we also publish practical guidance that may help, including our guide to energy procurement for manufacturers and SBS support for carbon reporting compliance.