11. Usage of Natural Resources

The company discloses the extent to which natural resources are used for the company’s business activities. Possible options here are materials, the input and output of water, soil, waste, energy, land and biodiversity as well as emissions for the life cycles of products and services.

The following resources are used in the activities of the company:  
On grounds related to competition law, all the information we report is not in the form of absolute numbers but is reported as relative quantities per metric ton of processed raw hops (see performance indicators 11-13). In addition, the throughput quantities in the works are subject to harvest-related fluctuations. Therefore, relative output information is more meaningful. The basis for calculations is always the total tonnage per calendar year processed in the two HHV works.

12. Resource Management

The company discloses what qualitative and quantitative goals it has set itself with regard to its resource efficiency, in particular its use of renewables, the increase in raw material productivity and the reduction in the usage of ecosystem services, which measures and strategies it is pursuing to this end, how these are or will be achieved, and where it sees there to be risks.

Only by acting in a thoroughly responsible way, by sustainable cultivation, and the careful use of resources can we secure our range of hop products, their consistent high quality, and our business concept in the long term. In the context of the sustainable development of the company and the efficient use of resources, we and our contract partners continually optimize our processes, not only in growing hops but also their marketing and in processing the raw material. We welcome environmentally aware thinking by our suppliers and encourage it by supporting potential resource-conserving production and harvesting processes. Our leading role in the hop industry continually reminds us of our responsibilities. For this reason, we have set ourselves several goals in terms of resources management and have taken measures to effectively counteract risks arising from our business activities.  

Energy savings
We have taken several measures intended to save further energy. One of them was the renewal of the water storage tank for the steam generator by 2020. The tank was installed and is now in operation. Another is the intended replacement of the steam distribution pipework by the end of 2021. Some of the steam pipes were modified in 2020 and more will follow in 2021. With reference to the energy optimization of the cooling tower, installation took place in August 2020, and further energy optimizations were complete by the end of 2020.  

Use of renewable energy
Increased use of regenerative energy is planned to be achieved by the on-going installation of photovoltaic systems on operational building roofs. The installation is now complete. The new systems were brought into operation at the end of 2020.  

Breeding own varieties
An important goal relates to our hop breeding program. Two external factors make the measures taken for this purpose particularly relevant. First: the systematic use of integrated crop protection is essential to avoid attack by disease and pests. In doing this, we should have as wide a range of effective ingredients as possible available to us to avoid the build-up of resistance in the plants. However, the use of different agents is continually restricted by legal provisions, including the EU’s Farm-to-Fork Strategy. Second: longer periods of dry weather, which are occurring more frequently due to climate change, cause drought stress and disrupt the development of the hop plants during their growth phase. Restrictions on artificial irrigation imposed by water authorities obstruct the efficient development of the necessary infrastructure. We are working to counteract these risks with our in-house hop breeding program. Its objective is to replace ordinary general market hop types with our own new varieties. These are bred to have special resistance to diseases and pests, and can withstand drought stress. In terms of achievements so far, we have been successful with the goal-focused, marker-assisted breeding of aroma and high-alpha varieties, two of which have already been approved and introduced to the market. Similarly, we are researching with partners on nationally funded programs into new ways of providing plants with water.  

Making adjustments to all existing concepts and evaluating previously drawn conclusions is something we do as a matter of course and an integral part of our corporate philosophy. The company’s senior management is deeply involved in all these processes. The identified material topics and progress are discussed at regular top-level management meetings. Potential and actual business risks are always considered by the executive management and brought up from time to time with the shareholders.

Key Performance Indicators to criteria 11 to 12

Key Performance Indicator GRI SRS-301-1: Materials used
The reporting organization shall report the following information:

a. Total weight or volume of materials that are used to produce and package the organization’s primary products and services during the reporting period, by:
i. non-renewable materials used;
ii. renewable materials used.

The company always uses recyclable packaging wherever possible.
Packaging materials (kg per mt
raw hops)
(*g per mt raw hops)
 2017 2018 2019
Cans / containers 9,6 9,0 13,0
Cardboard 40,9 44,9 43,3
Composite films 6,4 9,4 9,4
Stretch films 0,4 0,5 0,6
Paletts 21,3 30,2 23,6
Aluminum containers* 0,03 0,04 0,06

Process materials (kg per mt
raw hops)		 2017 2018 2019
Ethanol 1,8 2,3 3,4
CO2 38,3 48,2 55,9
Glucose 1,0 1,1 0,02
Propylene glycol 1,2 1,4 1,7
Acids and alkalis / auxiliary process materials 19,9 19,4 22,5

The partial increase in numbers can be put down to market-driven demand.

Key Performance Indicator GRI SRS-302-1: Energy consumption
The reporting organization shall report the following information:

a. Total fuel consumption within the organization from non-renewable sources, in joules or multiples, and including fuel types used.

b. Total fuel consumption within the organization from renewable sources, in joules or multiples, and including fuel types used.

c. In joules, watt-hours or multiples, the total:
i. electricity consumption
ii. heating consumption
iii. cooling consumption
iv. steam consumption

d. In joules, watt-hours or multiples, the total:
i. electricity sold
ii. heating sold
iii. cooling sold
iv. steam sold

e. Total energy consumption within the organization, in joules or multiples.

f. Standards, methodologies, assumptions, and/or calculation tools used.

g. Source of the conversion factors used.

a. + b. Fuel consumption is not recorded. We do not have many company vehicles. This indicator is therefore not important to the company and will not be reported.

c.
Consumption (kWh per mt raw hops) 2017 2018 2019
Heating oil consumed 71,5 96,2 110,7
Natural gas consumed
in the CHP plant (production) 		175,3 227,5 242,2
Natural gas consumed
by the heating system 		13,3 19,2 24,9
Purchased electricity consumed
 399,4 404,9 449,8
Woodchips consumed
for steam generation 		702,0 600,5 645,1
Process steam
consumed (from woodchips) 		275,6 263,8 271,1
Total of generated
own-consumption electricity used 		9,8 9,6 16,6

d.
Consumption (kWh per mt raw hops) 2017 2018 2019
Electricity sold 7,6 6,0 48,7
Heat energy sold 208,7 176,8 202,1

e.
Consumption (kWh per mt raw hops) 2017 2018 2019
Total energy consumption 1.863,0 1.804,4 2.011,3

The partial increase in numbers can be put down to market-driven demand.

Key Performance Indicator GRI SRS-302-4: Reduction of energy consumption
The reporting organization shall report the following information:

a. Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples.

b. Types of energy included in the reductions; whether fuel, electricity, heating, cooling, steam, or all.

c. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.

d. Standards, methodologies, assumptions, and/or calculation tools used.

The overall picture does not show a reduction in energy consumption. This can be explained as follows:  

The figures for 2018 and 2019 relate to the total processed quantity of raw hops in which the proportion of hop extracts including downstream products and hop oils significantly increased. Producing these products requires more energy because the raw hops must first be pelletized and then extracted. Extraction has a much higher energy requirement per kg of raw hops than pelletization (see Table A). Through the use of the new cooling towers, new compressors, and other measures for process optimization, we have been able to increase energy efficiency and achieve energy savings in extract production. The energy requirement per metric ton of raw hops has been reduced in recent years:

Table A
Energy consumption [kWh per mt raw hops] 2017 2018 2019
Pellet Production  294  285  293
Extract Production including cold storage of the products 2.675 2.186 2.012

The figures show that the energy requirement per metric ton of raw hops in 2018 was reduced by 18% and by a further 8% in 2019. Because the energy requirement per metric ton of raw hops for extract production is much higher than that required for making the pellets, the energy-saving measures are particularly effective.  

The increase in energy consumption can also be attributed to the commissioning of a new cold storage facility in Elsendorf. The own-consumption electricity we produce from our photovoltaic systems equates to the annual energy demand of the cold stores. The overall energy consumption has certainly risen due to the cold store, but this increase is carbon neutral.

Key Performance Indicator GRI SRS-303-3: Water withdrawal
The reporting organization shall report the following information:

a. Total water withdrawal from all areas in megaliters, and a breakdown of this total by the following sources, if applicable:
i. Surface water;
ii. Groundwater;
iii. Seawater;
iv. Produced water;
v. Third-party water.

b. Total water withdrawal from all areas with water stress in megaliters, and a breakdown of this total by the following sources, if applicable:
i. Surface water;
ii. Groundwater;
iii. Seawater;
iv. Produced water;
v. Third-party water, and a breakdown of this total by the withdrawal sources listed in i-iv.

c. A breakdown of total water withdrawal from each of the sources listed in Disclosures 303-3-a and 303-3-b in megaliters by the following categories:
i. Freshwater (≤1,000 mg/L Total Dissolved Solids);
ii. Other water (>1,000 mg/L Total Dissolved Solids).

d. Any contextual information necessary to understand how the data have been compiled, such as any standards, methodologies, and assumptions used.

a.

Total water withdrawal
[m3 per mt raw hops]		 2017 2018 2019
Public and other water supplies 1,4 1,5 1,9

Key Performance Indicator GRI SRS-306-3: Waste generated
The reporting organization shall report the following information:

a. Total weight of waste generated in metric tons, and a breakdown of this total by composition of the waste.

b. Contextual information necessary to understand the data and how the data has been compiled.

a. Total weight of hazardous waste
[per mt raw hops]
 2017 2018 2019
ii. Recycling  [l] 0,4 0,4 0,5
v. Incineration (mass burn) [l] 0,5 0,6 1,1

b. Total weight of non-hazardous waste
[per mt raw hops]
 2017 2018 2019
ii. Recycling (sack of hops) [kg] 8,0 8,2 9,2
iii. Composting [kg] 3,0 1,6 4,0
v. Incineration [m3] 28,1 26,0 24,3

13. Climate-Relevant Emissions

The company discloses the GHG emissions in accordance with the Greenhouse Gas (GHG) Protocol or standards based on it and states the goals it has set itself to reduce emissions, as well as its results thus far.

All processing and refining activities are not without emissions: the same applies to hop refining. The most significant source of emissions is the consumption of natural gas in hop production and in the heating system. The main challenges relating to climate-relevant emissions lie in energy-intensive processes and the high cost of carbon-neutral energy carriers in production.  

Numerous measures are being implemented in particular to address energy savings, energy efficiency, and increasing the proportion of regenerative energy carriers in the area of production (see Criterion 12). These measures also have a positive effect on the reduction of emissions. With the bringing into use of the CO2 recovery system in 2015, we were able to reduce CO2 consumption in the extraction plant in 2016 by more than 60% compared to the 2014 value. However, we do not have reduction calculations referenced to the base year.

Information on emissions in hop growing and breweries can be obtained from corresponding investigations reported by various relevant companies, professional organizations, and associations. In this connection, we would like to make particular reference to the carbon footprint of hop growing published by the Hopfenring e.V. hop industry association: THG Emissionen im Hopfenanbau HRI_18_19.pdf (766.73 KB)  

Key Performance Indicators to criteria 13

Key Performance Indicator GRI SRS-305-1: Direct (Scope 1) GHG emissions
The reporting organization shall report the following information:

a. Gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent.

b. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3 or all.

c. Biogenic CO2 emissions in metric tons of CO2 equivalent.

d. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

e. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

g. Standards, methodologies, assumptions, and/or calculation tools used.

  Unit 2017 2018 2019
a. Scope 1 - Gross direct based on raw hops kg CO2 / kg raw hops 0,164 0,178 0,189
b. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3 or all.   CO2 CO2 CO2
c. biogenic CO2 emissions (woodchips = steam) Gross direct based on raw hops kg CO2 / kg raw hops 0,11 0,10 0,10
f. Consolidation approach for emissions; whether equity share, financial control, or operational control.   operational operational operational
g. Standards, methodologies, assumptions, and/or calculation tools used.   standard ISO 50001 Energy Management

Key Performance Indicator GRI SRS-305-2: Energy indirect (Scope 2) GHG emissions
The reporting organization shall report the following information:

a. Gross location-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

b. If applicable, gross market-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

c. If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

d. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

e. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

g. Standards, methodologies, assumptions, and/or calculation tools used.

  Unit 2017 2018 2019
a. Scope 2 - Gross direct based on raw hops kg CO2 / kg raw hops 0,112 0,100 0,103
c. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.   CO2 CO2 CO2
f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

   operational operational operational
g. Standards, methodologies, assumptions, and/or calculation tools used.   standard ISO 50001 Energy Management

Key Performance Indicator GRI SRS-305-3: Other indirect (Scope 3) GHG emissions
The reporting organization shall report the following information:

a. Gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent.

b. If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

c. Biogenic CO2 emissions in metric tons of CO2 equivalent.

d. Other indirect (Scope 3) GHG emissions categories and activities included in the calculation.

e. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

f. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

g. Standards, methodologies, assumptions, and/or calculation tools used.

This indicator is not reported because the emissions in this area are much less relevant in comparison to Scope 1 and 2. This indicator is consequently not important to the company and the data will therefore not be collected.

Key Performance Indicator GRI SRS-305-5: Reduction of GHG emissions
The reporting organization shall report the following information:

a. GHG emissions reduced as a direct result of reduction initiatives, in metric tons of CO2 equivalent.

b. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

c. Base year or baseline, including the rationale for choosing it.

d. Scopes in which reductions took place; whether direct (Scope 1), energy indirect (Scope 2), and/or other indirect (Scope 3).

e. Standards, methodologies, assumptions, and/or calculation tools used.

With the bringing into use of the CO2 recovery system in 2015, we were able to reduce CO2 consumption of the extraction plant in 2016 by more than 60% compared to the 2014 value. However, we do not have reduction calculations referenced to the base year. Numerous measures are presently restricted in scope to energy savings, energy efficiency, and increasing the proportion of regenerative energy carriers in the area of production. These measures also have a positive effect on the reduction of emissions (see Criterion 12).