• Thursday, March 28, 2024
businessday logo

BusinessDay

Guinness Nigeria’s owners pledge $219m for clean power in Nigeria, here is why

Guinness Nigeria profit warning waves warning flag to other beer makers

British multinational alcoholic beverages company and owners of Guinness Nigeria, Diageo has unveiled plans to invest $219 million in clean energy generation and water recovery across its brewing facilities in sub-Saharan Africa.

The move comes as global corporations come under pressure to reduce pollution and help fight climate change. Africa is Diageo’s largest region by beer volume, with Guinness its main brand, and the continent accounts for 13percent of overall sales.

“We’ve set ourselves ambitious environmental targets, aligned with the United Nations global SDG’s, and our efforts to deliver on these by 2020 continues at pace.

Progress has included a 45percent reduction in our carbon emissions and a 44percent reduction in our water consumption over the past decade,” Diageo said in a press statement.

While admitting the firm remains committed in reducing its carbon emissions from direct operations by half by 2020, Diageo’s chief executive Ivan Menezes believes the plan is one of the largest single climate-related investments touching multiple sub-Saharan countries to have been made by a private sector firm to date.

“We have a responsibility as a local manufacturer and employer in Africa to grow our business sustainably – creating shared value – and this significant investment continues our work to pioneer sustainable solutions for our local supply chains,” Menezes said.

According to an email announcement, the first stage of the investment will see the beverage giant, which owns brands such as Guinness and Smirnoff, spend £50m of upfront capital on solar, biomass and water recovery facilities.

Diageo noted that biomass boilers using sustainable fuels would be installed at three breweries in Kenya and Uganda to replace the dirty sources of energy production, while bamboo, wood chip and rice husk would create steam power, cutting emissions and creating jobs alongside local farmers who provide raw materials.

The world’s largest drinks maker will also add solar installations and water-recovery
facilities at 11 brewing sites in seven countries including Nigeria, South Africa and
Tanzania.