Corona Extra

RATING

SECTOR

Alcohol

WEBSITE

CONTACT

Anheuser-Busch InBev Grand Place 1 1000 Brussels Belgium

STOCK EXCHANGE

LISTING

  • #63 World’s Most Valuable Brands 2020

EMPLOYEES

40,617 for parent company Grupo Modelo

CHIEF SUSTAINABILITY OFFICER

Thomas Hügli

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

Report created by Cec Ehrhard

Corona Extra

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Corona is a Mexican imported beer that is a subsidiary of AB InBev.

Corona was originally being brewed and exported in Mexico by Grupo Modelo. In 2008, Anheauser Busch InBev, who already owned 50% of Grupo Modelo, wanted to acquire the other 50%. In 2012, The US Department of Justice filed an antitrust suit against this acquisition. Grupo Model and Ab inBev ended up merging while transferring the United States rights to a competitor brand, Constellation Brands.

As of 2013, Grupo Model’s brands are still made in Mexico, but distributed by Constellation Brand in the United States. Anheuser-Busch InBev owns the company while Constellation Brands handles the distribution and import of Grupo Modelo’s beers.

Company Sustainability Activity

Corona’s sustainability activities are reported by parent company AB InBev.

Highlights

  • AB InBev were selected for the 2019 Bloomberg Gender-Equality Index as one of 230 companies around the world working toward more equal, inclusive workplaces 
  • They partnered with Nikola Motor Company and BYD (Build Your Dreams) to complete the first ever ‘Zero-Emission Beer Delivery’ in the US, delivering beer from the Anheuser-Busch brewery in St. Louis, US using only zero-emission trucks.
  • AB InBev was recognized among Fast Company’s World-Changing Ideas 2019 and Forbes’ inaugural Blockchain 50 list for their partnership with BanQu, a startup from their 100+ Sustainability Accelerator which helps provide financial identities to unbanked farmers in Uganda and Zambia. 
  • To celebrate Sustainability Week, over 1,200 of their colleagues in Nigeria came together through their Better World Champions initiative to participate in street cleanups, rehabbing local roads, planting trees, coaching students, recycling and more.
  • As an extension of a longstanding partnership with Parley for the Oceans, Corona began accepting plastic intercepted in cities and on coastlines around the world as payment for beer during the week of World Oceans Day
  • AB InBev was ranked number 19 on Fortune’s 2019 “Change the World” List in recognition of their agricultural development initiatives to help farmers become more financially empowered.

Targets

Renewable Energy & Carbon Reduction

  • 100% of Corona’s purchased electricity will come from renewable sources and CO2 emissions across their value chain will be reduced by 25% by 2025
  • All domestic beers will be brewed with 100% renewable energy by 2021

Water Stewardship

  • 100% of Corona’s facilities will be engaged in water efficiency efforts; and 100% of their communities in high-stress areas will have measurably improved water availability and quality by 2025

Smart Agriculture

  • 100% of Corona’s direct farmers will be highly-skilled, connected, and financially empowered by 2025

Circular Packaging

  • 100% of Corona’s packaging will be made from majority recycled content or will be returnable

Progress

  • In 2019, Corona signed solar contracts for their Dominican Republic electricity volume that, when operational, will bring 74 GWh of renewable electricity to the country
  • Signed a solar contract with Casaforte Investimentos for a 30% of the total volume in Brazil
  • In 2019, Corona reduced energy purchased in breweries by 5.21% vs 2018
  • Switching to more environmentally friendly refrigerants and increasing efficiency in 100% of coolers across the world. Coolers represent 20% of the carbon footprint and through this new technology will bring an additional decrease in emissions across the value chain
  • As of 2019, 50% of their direct farmers met their criteria for skilled; 45% for connected and 35% for financially empowered.”

Certificates

N/A

Sustainable Development Goals

UN SDGs Compliance

SDG 3

  • Citypilots: Reduce the harmful use of alcohol by at least 10% in six cities by the end of 2020 and implement the best practices globally by the end of 2025.
  • Social Norms: Influence social norms and individual behaviors to reduce harmful use of alcohol by investing at least 1.0 Billion USD across their markets in dedicated social marketing campaigns and related programs by the end of 2025.
  • No – And Low – Alcohol Beer: Ensure No- or Low- Alcohol beer products represent at least 20% of their global beer volume by the end of 2025.
  • Label And Alcohol Health Literacy: Place a guidance label on all of their beer products in all of their markets by the end of 2020*. Increase alcohol health literacy by the end of 2025.

SDG 6

  • Corona has established global water partnerships with The Nature Conservancy (TNC) and World Wildlife Fund (WWF) to invest financial and technical resources including green infrastructure initiatives, conservation and reforestation projects, habitat restoration efforts, and improved water infrastructure. Both of these organizations share their belief that measurable impact at scale is the next frontier in water stewardship.

SDG 10

  • In 2019, Corona continued to engage with external human rights stakeholders to help inform their company-wide approach to human rights. This led to joining Shift’s Business Learning Program and collaborating with a range of human rights organizations such as Arche Advisors, Partner Africa and Landesa. 

SDG 17

  • Partnership with Parley for the Oceans 
  • Working with the World Wildlife Fund (WWF), focusing on addressing local water challenges in Bolivia, Mozambique, Uganda and Zambia.

Secondary SDGs: 7, 12, 13

Evaluation

As a subsidiary company of the AB InBev organization, Corona’s annual report is produced by AB InBev. The report is standard, with a climate target aimed for 2025.

The company recognizes that “more than 80% of [their] emissions lie in our supply chain”. With that said, they could do a better job creating reform within that area and explicitly stating their goals and target for the supply chain.

Furthermore, ABinBev should be funding projects like replacing all standard trucks and vehicles with electric vehicles and replacing energy with renewable energy do decrease supply chain emissions.

There seems to have been mild efforts within this important area that would transform the trajectory of the company in terms of sustainability.

Corona has no certifications or awards. Corona also relies on parent company for all sustainability information and reports. The company have been given a “D” rating.

 Outlook: Negative

Corona could do a better job making reform within the supply chain. Likewise, the company should be explicitly stating their goals and target in that area since it makes up such a large portion of the company’s emissions.

Key Points

  • Annual report is misleading as they have a SDG chart with their goals, but do not explicitly state what information is designated to those goals
  • Since 80% of emissions comes from the supply chain they should especially be focusing in that area.
  • The company has no certifications or awards
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