Sustainability in business refers to companies manage their environmental, financial and social risks, the obligations and opportunities they have and when companies manage these factors they affect three things positively that is people, profits, and the planet or environment (Kates, 2018). Sustainable Development Goals(SDGs) are agendas set by the United Nations that companies, nations, and other organizations need to fulfill to ensure that there is balanced development in the areas of the environment, socially and the economy. This objective of this report is to analyze the sustainability of Hoegaarden, assess the SDGs that it has implemented for this purpose and its challenges and it will finally give suggestion on what can be done to improve the implementation of SDGs by the company (Dempsey, Bramley, Power, and Brown, 2011, pp. 293). This report is important as it will help other companies know what is expected of them in terms of sustainability and what challenges they may face.
Hoegaarden is a beer manufacturing company based in Belgium and it is a brewery that is well known for producing a wheat beer like the Belgian white beer. Their beer is a fast selling product since it is priced lowly therefore it qualifies the business to be a Fast-Moving Consumer Goods (FMCG) company. The company has made it its objective to implement SDGs in their everyday running of the business to ensure their sustainability and profits in addition to protecting the people around it and the environment all with the aim of making a better future. It faces some challenges while implementing these SDGs (Castiaux, 2012, pp. 1240013). First, some of the SDGs do not match up with the sustainability goals of the company hence they do not have any motivation to implement them as they feel they will not benefit. Next, is the challenge of how to properly manage waste left over from their products. While serving their low-income customer base, the company packages their beer in cheap materials which are disposed of after use. The challenge comes in when the waste has to be disposed of since this has become a major waste problem. Since most of the markets where Hoegaarden products end up have not formal waste management programs this will affect the environment when they are thrown in landfills (Hutton and Varughese, 2016).
Hoegaarden breweries have set goals to ensure that they protect the environment through reviewing such things as their production process in an effort to make it more environmentally friendly and reduce the effect it has on the environment. This goal is key to their dream of being the best beer company in a better world. Currently, Hoegaarden as a company has various sustainability foci to achieve this goal. First, focus it to encourage circular packaging. This is where they ensure they package their product in returnable packages or by using products that have a majority of recycled raw materials. It ensures that when people dispose of the packaging it will be friendly to the environment due the waste can be easily managed (Weisenthal, and Lowy, 2013). Next, the company has come up with technology that has helped stop the wastage of the by-products that come from the beer production process. They have made that the products can be made to consumable by humans and thus this will help the food crisis that will face the world as the population continues to grow and the food sources decrease (Ebitda, 2013).
Another focus is on encouraging smart agriculture. This is achieved by the company ensuring all of its farmers, who provide them with their raw materials such as wheat, are empowered financially and have the necessary skill to practice smart agriculture. They ensure the farmers have high yields while using little input thus increasing profits on both sides. Next, is climate action and they have done this by ensuring that the electricity use in their breweries is produced in a safe manner and it uses renewable means such as biogas (Young, Hwang, McDonald, and Oates, 2010, pp. 25). The final focus is water stewardship. It is where the company has aimed to ensure that water availability and quality has been improved in areas that have issues accessing water. This will greatly help the local community and also the company as it used in beer production (Tilstam, 2012, pp. 389).
The first factor is management. The company and its parent organization through its management have come up with sustainability goals 2025 for them to achieve. Since the management supports the implementation of these goals, it will ensure its success. The top leadership has come up with different strategies to be used to implement these goals which also go hand in hand with SDGs. When management has a positive attitude towards sustainable development it means that it will be successful in its implementation since they have the motivation to do so from the top as evidenced by their annual reports where top leadership supports it (Tsai and Chou, 2009, pp. 1450).
Another factor is the support of the local and national government. The Belgian government adopted the SDGs and vowed to implement them by 2030. Therefore this means that the company, whose sustainable development goals go in line with the SDGs, request for the support they will get it easily and they will have an easier time implementing projects that support it. Also, there are policies put in place with the help of the Federal Council for Sustainable Development which help the company in its goal (Hess, 2008, pp. 470).
The next factor is infrastructure. The company has in place proper infrastructure that helps it implement sustainable development with ease. An example of a focus is having clean energy and the brewer already has in place methods through which they can safely turn their waste in biogas which is then used to produce renewable electricity which is safe for the environment and also leads to savings for the company. Next, is business incentives available to the company. When the company achieves sustainable development, there are some incentives such as getting profitable that encourage it to ensure that it is successful in its implementation. When a company has motivation like profits they will do everything in its power to ensure the success of sustainable development (White, 2009, pp. 390).
Belgium does not force its companies to produce sustainability reports on their efforts to implement SDGs in their businesses as they feel that everyone should have a choice in doing so and thus they will not do so willingly. Hoegaarden does yearly sustainability reports in which they give information on projects they have done that aid in promoting sustainability and that go hand in hand with the SDGs. Most of the reports mention them and how they have achieved them. In a previous report, they were focusing on three pillars which fulfilled some of the SDGs. These pillars were a healthier world, where they hoped to encourage its customer to practice safe drinking (Damtoft, Lukasik, Herfort, Sorrentino, and Gartner, 2008, pp. 120). Then a cleaner world which encouraged the company and the world to ensure that natural resources are used well and preserved for the future. Finally, a growing world where they wanted to create a world where the community that improves its livelihood.
Hoegaarden and AB InBev, in general, have compiled and implemented the Global Sustainability Goals 2025 which are in sync with the SDGs. Therefore, the company will implement its goals with the SDGs in mind. They have come up with plans to implement these goals with the SDGs in mind. Some of the plans include implementing the Global Smart Drinking Goals which has the aim of ensuring that their consumers make smart drinking choices such as having designated drivers when they go out drinking. Another plan is doing research on how alcohol producers can help in reducing alcohol misuse and the side effects that come along with it. When this is done the company will implement them and thus the SDG used in this plan is good health and wellbeing (Jacques, 2015). Also, the researchers will come up with a guidance system on how they can measure their Global Smart Drinking Goals thus making it achievable. When the SDGs and the company’s plans for sustainability are aligned it will make it easier for the company to standardize the funds used in achieving the plans they have set. Finally, the SDGs have been used by the company performance indicators. They can be used to measure whether they have achieved the goals they set for themselves as a company thus ensuring the plans have been completed well (Waas, Hugé, Verbruggen, and Wright, 2011, pp. 1650).
The first SDG that is relevant to Hoegaarden is clean water and sanitation. They have achieved using various means the brewery and its umbrella corporation have extended their partnership with Water.Org in their objective to provide clean safe drinking water to 3.5 million people in the developing world. Also, in their breweries, they have partnerships with waste management companies to ensure that they dispose of their waste in a safe way that does not harm the environment(Banister, 2008, pp. 77). This goal is important to Hoegaarden because their aim is to be the best beer company but in a better world and this can only be achieved if there are people to buy their products in future. By helping them access clean water and proper sanitation it will ensure that they are healthier and also the company will last (Hák, Janoušková, and Moldan, 2016, pp. 570).
The next SDG is affordable and clean energy. The company has achieved this in various way; first, they have implemented a start/stop procedure in their breweries which is where all energy consuming machines are shut down when they are not used. This has resulted in significant savings in terms of energy wasted and thus resulting in savings financially. Also, the brewery has ensured that they signed a green contract with companies that sell them electricity thus ensuring it is produced in a safe and clean manner. The waste from their breweries have been converted to biogas and in turn, the brewery uses it to produce electricity thus this means the energy is clean and affordable. This is important to the company since it will be going hand in hand with their goal of having a better world for them to be the best beer company (Tolón-Becerra, Lastra-Bravo, Steenberghen, and Debecker, 2011, pp. 4405).
The final SDG is good health and wellbeing. It is achieved focusing on a healthier world and the company does this by focusing on encouraging responsible drinking. Although their business profits depend on many people drinking their product, the company has Global Smart Drinking Goals which aims to empower their customers to make intelligent choices about their drinking and avoid being influenced by social norms (Sachs, 2012, pp. 2208). Also, the company has committed and created a foundation that focuses on researching how companies like Hoegaarden can reduce the misuse of alcohol and also the harmful side effects it has. It is important to them since it ensures that the company will last (Pearce, 2014).
There are several strategies which Hoegaarden can implement in an effort to improve the three SDGs which they have chosen as important to them and to implement them. The first strategy is to come up with company policies which support them and show their importance. These policies will ensure that all their employees are obligated to implement them and ensure their success. When this happens it leads to a company culture where they know what is expected of them and thus the success of the SDGs leading to benefits to both the company and the society (Griggs, et.al, 2013, pp. 305).
Another strategy is to consult their employees on ideas on what they could do to better these SDGs. When people are tasked with challenges such as these they tend to come up with creative ideas since they are the one on the ground and thus will know what needs to be improved on. thus when as a company, Hoegaarden, asks for ideas the employees will feel appreciated and put their best foot forward thus coming up with better ideas (Chobanova, 2009). Also, the company can carry out sessions with the community which they carry out corporate social responsibility in. these individuals can also have ideas on what more can be done to improve on the SDGs (Avermaete and Vandermosten, 2009, pp. 245).
There are some performance indicators that can be used to evaluate these strategies. First, by 2025 the company will be using clean and renewable energy in its production process. Already the company has started using biogas to produce electricity which powers their machines thus this is going the right way of using clean energy. Also, using the start/stop process where the energy used is not being wasted in breweries resulting in savings in terms of energy and financially(Moran, Wackernagel, Kitzes, Goldfinger, and Boutaud, 2008, pp. 472). The company should do yearly checks to ensure that this is being done in each brewery and not just for show. Another one is that the company should ensure that by 2025 they have provided clean safe water to the 3.5 people they have promised to and even exceed the number. They can evaluate this frequently to ensure that they are on track to doing so (Kuik, and Verbruggen, 2012).
Conclusion.
In conclusion, this report has focussed on analyzing how Hoegaarden has handled its sustainable development efforts. It looked at the challenges that it faces in its efforts in implementing the plans for sustainable development for the company and then looked at what areas it has focused on with these plans. It then covered the factors which have aided it in its plans then analyzed the SDGs while looking at how Hoegaarden has applied them in their plans and reporting. Finally, it gave strategies that can be used to ensure the success of Hoegaarden sustainability development plans and what indicators can be used to evaluate them. Some of the challenges while compiling this report was the lack of information on how Hoegaarden have made efforts in sustainability thus further research has to be done on this.
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