Carlsberg Group: Decarbonizing Draught Beer

Carlsberg Breweries A/S, a global brewing leader based in Denmark, aimed to reduce the environmental impact of traditional draught beer systems, which contributed to carbon dioxide (CO2) emissions through the use of CO2 tanks and the transportation of heavy steel kegs. Carlsberg developed the DraughtMaster system, which replaced CO2 tanks with recyclable plastic kegs, reducing emissions but raising concerns about plastic waste. In late 2021, Carlsberg’s efforts to expand the deployment of this eco-innovation to North America sparked questions about how the company should manage reputational and environmental risks. Should Carlsberg continue expanding or take a stronger stance on plastic reduction—or can it avoid framing this dilemma as an either/or choice?

By working through the case and assignment questions, students will have the opportunity to do the following:<ul><li>Balance divergent yet interrelated goals in sustainability: Assess trade-offs, namely ontological and/or socially constructed tensions, between diverse sustainability goals (reducing carbon emissions versus reducing plastic pollution). Explore and reconcile the challenges and opportunities that arise when attempting to align eco-innovation with broader sustainability principles.</li><li>See and understand paradoxes as “threshold concepts”: Transform the way they think about and respond to tensions between diverse sustainability goals, fostering paradoxical thinking. Leverage paradoxical tensions between diverse sustainability goals to generate eco-innovations that tackle multiple sustainability issues at once. </li><li>Engage in strategic decision-making in sustainability: Examine the strategic decision-making process through which a company develops and implements eco-innovations. Gain insights into the potential risks and rewards associated with sustainability commitments and their impact on a company’s reputation and bottom line.</li></ul>

• beer industry
• sustainable development
• circular economy
• paradox theory