Pernod Ricard expands reuse scheme to cut scope 3 emissions

Pernod Ricard is rolling out a reusable packaging scheme for delivery of gin, vodka and rum to hospitality venues globally which it says will save considerable amounts of carbon emissions and reduce glass waste.

The new system, in which products are transported in bulk and delivered to hospitality venues in a fully reusable 4.5-litre glass ecoTOTE container, is designed by ecoSPIRITS – a circular economy technology company that claims its patent-pending closed loop system “nearly eliminates all packaging waste in the supply chain”.

A trial with Pernod Ricard in Singapore helped identify the practical challenges and opportunities of this approach to circular distribution, providing insights into operational, technological, and sustainability aspects critical for scaling it all up.

Three of Pernod Ricard’s spirits brands – Beefeater London Dry gin, Havana Club rum and Absolut vodka – were successfully distributed in the reusable format and dispensed in venues using the ‘SmartPour’ technology. 

Now the two companies have announced a five-year global licensing agreement, starting with the introduction of a closed loop system for Havana Club rum in the brand’s home market of Cuba. A dedicated ecoPLANT has been developed at Havana Club’s distillery in San José de las Lajas. 

The reduced bottle imports and glass waste will result in an 88% reduction of the carbon emissions footprint related to premium spirits packaging and distribution, as well as a reduction of glass waste by 99%, the companies said in a joint release. Additional brands will be added to the system in different markets.

Pernod Ricard has identified packaging as key to reducing its carbon emissions in line with 1.5C of global heating. Decreasing bottle weight, augmenting recycled content, innovating and exploring new materials and developing closed-loop distribution models, will all play a part in cutting its scope 3 emissions.

The drinks company said 95% of its emissions were linked to its scope 3 in FY23, including 49% from agriculture and 25% from packaging. Total emissions amounted to over 9.5MtCO2e in 2022, a rise of almost 1.7MtCO2e (21%) on the previous year, according to the net0tracker website.

Pernod Ricard recently had its near- and long-term carbon reduction targets verified by the Science-based targets initiative (SBTi). Absolute scope 1 and 2 emissions must fall by 54% by FY30 from a FY22 baseline. The group also committed to reducing absolute scope 3 FLAG (forest, land and agriculture) emissions by 30.3% and non-FLAG emissions (purchased goods and services, upstream transportation and distribution) by 25% within the same timeframe. It has also committed to no deforestation across its primary deforestation-linked commodities by the end of next year.