As an agricultural-based company, Constellation Brands relies on water, land and other resources for our continued growth and success. In order to safeguard natural resources, we are committed to serving as good stewards of the environment by ensuring that our facilities operate sustainably and by putting measures in place to help reduce our use of precious natural resources. Beyond our operations, this focus on sustainability is also critical to the people, communities, and environments where we operate.
We recognize the human right to water and sanitation, and given the nature of our business, water is an essential resource. Therefore, Constellation has made water conservation and stewardship a focus of our overall impact strategy. To maximize our contributions to the industry, we recognize we must join forces locally with business, industry peers, and community leaders to work together. For us, this means increasing water efficiency, maintaining source availability and quality, using our company resources and relationships to advance conservation efforts, and always reporting transparently.
Between the period Fiscal Year 2023 and Fiscal Year 2025 we are targeting to restore approximately 1.1 billion gallons of water withdrawals from critical watersheds, while improving accessibility and quality of water for our communities where we operate. To achieve our targets, we developed a strategy focused on:
• Water Efficiency
• Watershed Restoration
• Water Accessibility and Quality
Our Operating divisions are contributing to our total company targets by leaning into the components of our strategy that best meet the needs of communities they operate in while maintaining focus on operational improvements that align with the unique aspects of each production process. Here’s how our divisions are turning the strategy into practice.
With our beer operations achieving some of the best-in-class water efficiency metrics in the industry, the strategy for our Mexican beer operations puts greater emphasis on water restoration and infrastructure improvement for the communities where we operate in Mexico. Critical projects have been identified through community collaboration and input and guidance from third-party water restoration organizations. For example, to improve water quality in the Nava area, we have partnered with Pronatura Noreste, investing in a 10-year project that will help restore the Bravo Conchos basin in the Serranía del Burro. In Obregon, we have worked with local organizations to construct three dams along the Yaqui Valley canal that help improve water management efficiency, recovering volumes of water that play a vital role in the sustainability of the region.
The near-term focus for our Wine and Spirits Division is on opportunities within California, which represents 70% of water use by the division. Within our California operations, we plan to improve our water efficiency by implementing employee education programs and enabling greater adherence to water management best practices to further reduce our overall water withdrawal and use. We have invested in expanded sub metering and instrumentation within our facilities that will provide improved monitoring and tracking helping to optimize the operational management of water.
Similar to our beer operations, we recognize the most significant opportunity to advance our water stewardship impact is through community engagement. As such, we are exploring affiliations and programs focused on protecting the higher risk watersheds. Here, we seek to engage in more nature-based solutions such as reforestation, waterway rehabilitation and wetland and ground water restoration to help protect and ensure the future resiliency and integrity of the watersheds for all.
As part of our commitment to protect the environment and the communities where we operate, we are decreasing our dependence on non-renewable energy sources whenever possible and reducing greenhouse gas (GHG) emissions and energy consumption. We monitor our carbon footprint and work to effectively reduce our emissions per liter of product produced over time.
To help us better understand continued opportunities, we track four major Greenhouse Gases (GHGs): carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and hydrofluorocarbons (HFCs) in accordance with the international guidelines of the Greenhouse Gas Protocol developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). We express our carbon footprint in terms of carbon dioxide equivalents (CO2e).
Our near-term focus to help reduce the impacts of climate change is a target to reduce our GHG Scope 1 and Scope 2 emissions by 15% by Fiscal Year 2025* To deliver this target we are focused on three areas of opportunity:
*From baseline Fiscal Year 2020 Scope 1 and Scope 2 emissions
• Optimizing our energy efficiency
• Investing in renewable energy
• Supporting green energy initiatives of our footprint by participating in the carbon market
Within our Wine and Spirits Division, we are investing in renewable energy. Over the next three years we will invest in solar energy technology across our in California and Italy locations to provide local renewable power that helps our ongoing transition away from fossil fuel derived energy sources. In our beer operations we are investing in converting a portion of our operations to natural gas and investing in wind farms.
Similar to our water stewardship plans, we recognize the opportunity to deliver a greater impact requires thoughtful collaboration and alignment across our value chain. We’ve made progress in this area by improving and expanding our Scope 3 data collection process and are working to better understand our opportunities through stakeholder assessments, supplier surveys, and sharing of best practices to inform a more comprehensive value chain engagement strategy.
Waste is a part of any production process, and we are continually improving the ways we manage our waste to reduce the environmental impact of our waste generation, transportation and disposition. At our sites across the globe, our actions often involve composting, recycling, and diverting materials.
Our Nava and Obregon breweries in Mexico each diverted 99% of the waste produced in fiscal 2020 and our Ruffino Group applies the principle of continuous improvement to their waste management by reviewing their contracts with waste management companies annually. This exercise helps uncover further recycling opportunities and identify new ways to engage with dry goods suppliers (glass, corks, labels and cardboard) on waste reduction initiatives.
In the last two years, over 640,000 tons of by-products generated during production at Nava have been used by others in the region as feed for cattle, sheep, and pigs. The brewery also used alcohol residue generated during production of seltzers to make disinfectant gel that helps keep more than 4,000 employees in Mexico safe during the pandemic.
Constellation Brands is committed to providing a safe and healthy working environment and developing a culture where every employee takes responsibility for their own safety as well as the safety of others while minimizing our impact on the environment in the communities where we live, work and source. Our management team and employees work together with a sense of shared responsibility to ensure that we operate our business in compliance with all applicable regulatory requirements in each market where we operate around the world.
As an agriculture-based company, environmental issues are not only important to us – they are an essential component to our continued growth and success. Because we rely on the land for our livelihood, it is critical that Constellation does all it can to ensure clean water, air and soil at all of our sites and in all of the countries and communities where we operate. Our aim is to look for ways to improve the environment, while also minimizing Constellation’s collective environmental impact.
We understand that much of what we do to advance sustainability can be amplified through our conservation and sustainability certifications and our participation in industry programs, which share a wide range of best practices and help us measure progress.
“Biodiversity Friend” is a standard certification developed in 2010 by World Biodiversity Association to evaluate biodiversity and promote its conservation in agriculture. The procedure to obtain the certification considers the environmental impacts of the agricultural activities on the agrosystem and the biodiversity and suggests operational strategies to improve the environmental quality of the agriculture areas. Our Ruffino Group in Italy is certified under the Biodiversity Friend Certification.
All of our California wineries and vineyards are proud to be certified as part of the California Sustainable Winegrowing Alliance third-party Certification Program. The program is based on 227 best management practices and 58 prerequisites covering environmental practices and socially equitable business practices. The goals of the program are to enhance transparency, encourage statewide participation and advance the entire California wine industry toward best practices in environmental stewardship, conservation of resources and socially equitable business practices.
Fish Friendly Farming is a certification program for agricultural properties managed to restore fish and wildlife habitat and improve water quality. More than 1,300 acres of Constellation vineyards in Napa and Sonoma counties are certified in the Fish Friendly Farming program. The third-party certification is provided by the California Department of Fish and Game, regional water boards, and the National Marine Fisheries Service.
ISO 14001 is the world’s most recognized framework for environmental management systems. Earning certification to this standard highlights a facility’s commitment to reducing its environmental footprint. It also provides assurance to employees, customers and stakeholders that the company’s environmental impact is measured and continuously improved upon. The rigorous audit process addresses the elements of the ISO 14001 standard, assessing such issues as process effectiveness, internal communication practices and how aware employees are of environmental policies. Achievement of the ISO 14001 certification requires that a company have a culture of environmental responsibility, and a commitment to reducing its potential impact on the environment. Our Ruffino group facilities (Ruffino Srl and Tenute Ruffino Srl Società Agricola, situated in Tuscany and Poderi Ducali Srl Società Agricola in the Veneto Region (North of Italy)) are certified under ISO 14001:2015.
The Lodi Rules for Sustainable Winegrowing is a third-party certified sustainable winegrowing program, which promotes practices that enhance biodiversity, soil and water health, and community and employee well-being. To be certified, a grower must pass an independent audit of their viticulture practices.
Napa Green is a voluntary program focused on independently certified, environmentally sound farming and production methods that meet and exceed local, federal and state “best practices.” “Napa Valley vintners and growers develop farm-specific plans tailored to protect and enhance the ecological quality of the region. The Napa Green programs are open to all Napa County vintners and grape growers.” There are two certification programs: Napa Green Certified Land and Napa Green Certified Winery.
The National Quality System of Integrated Production (SQNPI) in Italy is aimed at the enhancement of agricultural and agri-food production. It provides for the certification of an integrated production process that combines good agronomic practices with a sustainable use of fertilizers and phytosanitary products, to meet the dual goals of strong agricultural practices and low environmental impact. Our Ruffino Group is certified under the SQNPI Certification.
All of our wineries in New Zealand are proud to be members of Sustainable Winegrowing New Zealand, an industry group established in 1995. Sustainable Winegrowing New Zealand provides members with environmental best practices for the vineyard and the winery, an external audit structure, and much more. The group also addresses consumer concerns about the environmental impacts of the products its members produce.
Constellation Brands is a member of the Beverage Industry Environmental Roundtable (BIER), a technical coalition of leading global beverage companies working together to advance environmental sustainability within the beverage sector. Through BIER, we work with other members to monitor and inform the development of climate change policy initiatives and work to ensure policy compliance through common guidance for calculating, tracking, and reporting sustainability impacts such as water security within the beverage sector. Our participation enables us to provide our industry’s unique perspective on water stewardship and climate change issues, while working collaboratively to develop best practices and industry guidance. Our Corporate Environmental Sustainability manager serves as a Member Chair in BIER.
DISCUS is the national trade association representing leading producers and marketers of distilled spirits products in the United States. Over the years, DISCUS has served as the distillers’ voice on policy and legislative issues in the United States’ capital, state capitals and foreign capitals worldwide. DISCUS sustainability strategies include land stewardship, responsible water use, energy reduction, Circular Material Syncing, waste reduction and evaluating transport burdens. Our Corporate Environmental Sustainability manager is a member of the DISCUS Environmental Sustainability Committee.
International Wineries for Climate Action (IWCA) is a collaborative working group of environmentally committed wineries focused on a science-based approach to reducing carbon emissions across the wine industry. Constellation Brands Fine Wine (U.S.), a member of IWCA, is comprised of four key wineries producing several iconic and well-known brands including Robert Mondavi, The Prisoner, To Kalon Wine Company and Schrader, to name a few.
Tennessee Sustainable Spirits (“Sustainable Spirits”) is a voluntary recognition and technical assistance program administered by The Tennessee Department of Environment and Conservation’s Office of Policy and Sustainable Practices. The program seeks to reduce operational costs and environmental impacts for wineries and wine growers, breweries, and distilleries as well as serve as a gateway to sustainability education through popular brands. It assists wineries and wine growers, breweries, and distilleries in improving operational sustainability by promoting best practices, providing technical assistance, and developing relationships. Our Nelson’s Green Brier Distillery is a member.