Beer is the fifth most consumed beverage in the world, and its consumption is growing globally. Beer Life Cycle Assessment studies have identified the greatest sources of greenhouse gas emissions (GHGs) along beer’s value chain, but studies in an Ontario, Canada and small (craft) brewer context are lacking. Furthermore, although direct carbon taxation does not yet apply to Ontario craft breweries, volatility of GHGs along craft brewers’ supply chains impact their economic and environmental sustainability. The goal of this case study research was to understand the main GHG sources along a craft brewery’s value chain in Ontario, Canada. This study also examined how the case company’s GHGs are impacted by internal and external variables. Lastly, this study took note of the benefits and challenges associated with GHG accounting from a craft brewery (Small-Medium Enterprise) perspective. This study used greenhouse gas accounting procedures aligned with the Greenhouse Gas Protocol Standards. Direct and indirect GHGs of a craft brewery was investigated using case company (primary) data, and emission factors and global warming potentials (secondary data). Greenhouse gas emissions were reported in carbon dioxide equivalents (CO2e) using 2016 as a base year. Scenario analysis was used to determine the impact of uncertain future environments and alternate decision-making on the case company’s 2016 GHGs. Specifically, the case company’s choice of packaging (glass bottles versus aluminum cans) and production volume (based on industry growth) were manipulated under primary, intermediate, and advanced projected future scenarios. These scenarios were chosen to maximize the practical usefulness of the analysis. The results found that the case company’s scope 3 GHGs (indirect) account for 46% of total value chain emissions, while scope 2 GHGs (indirect) account for 39%, and scope 1 GHGs (direct) account for 15% of the total. The results suggest upstream (i.e. supplier) and downstream GHGs account for the majority of total GHGs. This study also found that scope 1 and 2 emissions are fairly simple to calculate, but scope 3 emissions are very challenging due to a reliance on secondary data. Secondary data is time-consuming to collect, and can be difficult to find, which presents a barrier to craft breweries. This study concludes that GHG accounting combined with scenario analysis is a valuable strategy to establish a GHG baseline, and to mitigate GHGs under craft brewery projected future scenarios. The combination of these two tools allows craft breweries to identify key GHG hot spots and form decisions to reduce GHGs in the present and under potential future circumstances. However, GHG accounting and scenario analysis are difficult to execute for an organization with limited financial and human capital.
Keywords— craft brewery, greenhouse gas accounting, greenhouse gas emissions, scenario analysis.
4b. Affordable and clean energy
