Boortmalt’s Verified Low-Carbon Malt programme focuses on reducing greenhouse gas (GHG) emissions in our malt production, aligning with our Science Based Targets Initiative (SBTi) goals to reduce Scope 1 and 2 emissions by 42% by FY30. This programme uses a carbon bank to manage carbon reduction efforts and issue verified low-carbon malt certificates for sale to customers, enabling them to meet their Scope 3 emission reduction targets. 

Boortmalt’s decarbonisation projects result in measurable CO2e savings. These projects are independently verified, ensuring that carbon reductions are real. These savings contribute to the carbon bank, and certificates are issued based on verified reductions.

Certificates cannot be sold without also purchasing malt, i.e. the independent trading of CO2e reduction certificates is not allowed. The revenues generated from the sale of these certificates are reinvested into new decarbonisation projects that would otherwise be economically unfeasible, thereby generating additional CO2e savings and accelerating our decarbonisation efforts.

We are also focussing on scope 3 emission reductions, investing in regenerative farming practices to ensure healthier soils, increased farmer profitability and to build long-term sustainable agriculture – enabling us to achieve our goal to reduce our Scope 3 FLAG GHG emissions by 30.3% by 2030. For the time being, this initiative and the related emission reductions will be managed separately from the carbon bank.

Scope: The carbon bank is anchored in a gate-to-gate product carbon footprint (PCF) calculation, accounting for Scope 1 emissions (direct emissions from natural gas and fuel combustion) and Scope 2 emissions (indirect emissions from procured electricity and heat), excluding Scope 3 emissions such as those from barley production or logistics.

Region: The carbon bank methodology applies to the EU+UK region, excluding the Salzgitter, Germany facility, which operates under a third-party toll manufacturing agreement. The following sites are in scope of our EU+UK carbon bank:

• kg CO2e per ton of malt: Our product carbon footprint (gate-to-gate, only including our Scope 1 and 2 emissions) is expressed in kg CO2e per metric ton of malt. Emissions are allocated at ‘whole site’ level, meaning that all emissions at site level will be divided by the total net malt production of that site, with no further subdivision. Furthermore, our baseline product carbon footprint is the average of all sites in scope.
   
• Energy and production data: CO2e calculations are based on our invoiced energy consumption data (fuel, heat and electricity), multiplied by the most relevant carbon emission factors. Energy consumption data are collected through our internal data management system. An independent verification body, DNV, has verified these energy data by comparing them against invoiced data. Malt production volume data are also collected through our internal data management system, and have been verified by DNV against the source data.
   
• Baseline: As baseline for our PCF calculations, we have selected our FY23 data, to be in line with our SBTi commitment baseline. Note that FY23 started on 1 July 2022 and ended on 30 June 2023. The average PCF of all sites in the EU-UK region combined is 133 kg CO2e/ton malt, and this value is considered to be our FY23 baseline carbon intensity. 
   
• Baseline review: Our baseline will be reviewed at the end of FY30 at the latest (so that data is never older than 10 years) to reflect our ongoing decarbonisation efforts, setting a new business as usual. In case of any material change, such as a merger, acquisition or divestment, or significant changes in reporting or calculation methodologies or data sources that would affect our baseline, we will adjust our baseline PCF sooner and will remove or add any relevant CO2e savings from our carbon bank.

• Boortmalt tracks key performance indicators (KPIs) related to the carbon bank’s financial performance and the status of low-carbon malt certificates. We also manage the risks associated with underselling or overselling certificates, ensuring that the system remains balanced and financially viable.

• Internal reviews: Boortmalt has an internal team responsible for quality control, including data validation and method checks to ensure the accuracy of carbon footprint calculations and the effectiveness of the carbon bank.
• External assurance: The methodology and CO2e savings are externally verified by an independent body, DNV, ensuring compliance with industry standards and preventing double-counting of CO2e savings.

• Revenue use: Proceeds from the sale of low-carbon malt certificates are reinvested into new decarbonisation projects, driving further reductions in emissions.
• Decarbonisation initiatives: Boortmalt plans to continue electrifying its processes and exploring alternative low-carbon technologies. Our approach will adapt to changing local conditions, including energy and carbon prices, subsidies, and customer demand for sustainable products.

Customers purchasing Boortmalt low-carbon malt certificates can use these certificates to claim a reduction in their upstream value chain Scope 3 GHG emissions (on an organisational, project or product level), equivalent to the amount of certificates purchased.

The use of these certificates by the customer should be done based on the relevant standards or regulations. For further details on how to claim GHG reductions using these types of certificates, we refer to e.g. ISO 14068-1:2023. 

The certificates shall not be distributed in the market, meaning that customers cannot resell their certificates a such. Customers can, on the other hand, establish their own carbon bank, based on their organisational emission baseline, and include Boortmalt’s low-carbon malt certificates into their carbon bank. This carbon bank must have third-party oversight and assurance in terms of inflow and outflow and handling of the carbon bank. Any sales from this carbon bank would be done under their own brand, with their own issued declarations and subject to their own third-party assurance process.