Adnams: Sustainable Business Management - Risks & Opportunities

This report provides an analysis of sustainable business management practices at Adnams, a UK-based brewer company, focusing on the opportunities and risks associated with sustainability and climate change. It highlights the company's efforts to reduce emissions, implement waste hierarchy systems, and invest in alternative resources to achieve sustainability goals. The report discusses the challenges Adnams faces, such as rising costs and potential impacts on product quality, while also emphasizing the opportunities gained through improved reputation, cost efficiency, and customer retention. The report concludes that sustainability offers significant advantages for Adnams by protecting the environment and enhancing business growth, despite the initial investment risks and potential threats from climate change.

SUSTAINABLE BUSINESS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Sustainability risks and opportunities to business management.................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Sustainability means accomplishing a goal by keeping environment safe. It is the ability
to protect the environmental factor for the future generation (Yang, Vladimirova and Evans,
2017).Sustainability in business is the coordination of considering environmental, social and
economical factor to achieve the goal without giving negative impact on environment. Adnams a
UK based brewer company, main headquarter of the company is in Southwold, Suffolk, England.
This report includes the key terms to define the opportunity and threats for both present and
future of the business with examples. Further, include how climate change affect the area.
MAIN BODY
Sustainability risks and opportunities to business management
Business must ensure the mitigation of climate change for their better growth and
resilience. Many businesses are reducing their emission to protect the environment which are
reducing the carbon footprint in the environment. Adnams brewer company is proceeding with
sustainability in their business as their aim is to limit the consumption of their resources to
achieve the sustainability in their business (Gold and Schleper, 2017). Company invented their
new product carbon neutral bear which is subjected to sustainability by this company is saving
their investment on resources.
It is stated that Adnam beer company implements numbers of sustainable practices that
makes it able to accomplish goals and can make it able to become the market leader in the future.
In regard to sustainability, it can be said that it refers a practice or idea of doing business without
having negative impacts on society and environment as well. So, on the basis of this definition, it
can clearly be said that sustainability practices can give numbers of advantages and opportunities
to Adnam beer company. Before discussing some opportunities that Adnam company can take, it
is important to discuss some present climate change or sustainability related issues such as:
Sustainability/climate change issue: It is stated that the cost of beer could double this
century only because of climate change. The main key ingredient, used to make beverage is
sensitive to heat and drought and both of these are becoming more prevalent because of global
warming (de Paula Diniz, Carvalho and Abrahão, 2021). So, on this basis, it can be said that due
to climate change, Adnam can face problems in performing its business activities and all stages

of preparing beverage or beer because of climate change. It can increase cost that is not good for
customers and company as well.
It can increase insurance cost and labour cost that will also have negative impact on this
company. It is stated that Adnam implements numbers of sustainability practices that would give
numbers of advantages to it in the future but it can pose some challenges for present. It is found
that the overall plan and all practices such as: waste hierarchy, having own water harvesting
system, lime hemp block building has cost them approximate £4 million. Initially and for few
months, it will have to bear loss and suffer a lot because of increasing cost of implementation of
all these practices. It is also found that the beer needs specific temperature in order to ferment
and natural process takes time (Kinigadner, Büttner and Wulfhorst, 2019). Due to making use of
all natural resources can take time for fermenting and it will have to lose money because of not
supplying beer in a timely manner. So, all these are present issues that can have negative impacts
on this company.
Rising temperature of environment is affecting the profitability of the business and also
impacting their deep-rooted resilience. As for the Adnams brewer company is proceeding with
the sustainability in their business they are trying alternative resources for their products so that
their emission could reduce and does not affect the environment. Due to climate change many
risks are drive as physical risk which damage the property and livelihood, transition risk address
the low carbon economy or reputational risk address the economic loss in business, but also a big
risk is of financial risk which affect the profitability of the business. Adnams saves their
resources for further use as they save energy for further uses to protect the environment. They
are recognized for their social practices. They invest almost €4Million on their business which is
subjected to risk as what if sustainability in their business does not give good revenue to their
company. Also, they are experimenting with the new ideas for their production process they are
addressing the sustainability factor therefore they are proceeding with alternative resources
which can also affect the quality of their product. As they have threat to lose their customers
which will affect the long term resilience of their company. Climate change also drive many
risks for the company due to this change it gives directly impact on the crops and on agricultural
farms productivity which includes geographical changes as flooding, drought which affect the
crops. Therefore, Adnams company can suffer with scarcity of resources as for their beer product
they required water, malted wheat, hopes, barley if climate change affect all these crops then it

will be difficult for the company to develop their product (Nawazand Koç, 2018). As company
also using hemp blocks which reduce the electricity consumption but it could be a threat for them
as due their beer product required specific temperature if it does not found then it will take long
time to ferment which can affect the profitability rate of the company, or they can also lose their
customers which will be the huge loss for the company.
Sustainability opportunities: There are numbers of opportunities that Adnam beer
company can take by implementing all practices. It is stated that, this company is going to
implement waste hierarchy according to which it makes use of strategies by which it can manage
waste in a manner that can decrease negative environmental impacts. It is found that it uses
recycle energy that saves around £50,000 annually and 54% gas bill annually. As like this,
building where it produces beer is made up of lime hemp blocks and here it does not require
refrigerator that can save 65-68% electricity bill. By decreasing these expenses, it can increase
profit margin that would be beneficial for this company and all these practices will have positive
impact on environment. It is found that people prefer to buy products from companies that
produces sustainable and unique products. So, by making people aware about all these practices,
it can increase sales and profit as well.
It has its own rain water harvesting system for which it can decrease usage of water that
will also have positive impact on society and environment (Sarvari and et.al., 2019). It can
increase customers’ retention rate by making use of all these practices in an effective manner. It
can be suggested to this company that it should implement sustainability practices one by one in
order to balance between cost and profit. Rather implementing all practices altogether, it can
implement strategies one by one systematically as it will help out in solving problems of
increasing implementation cost. It also needs to start this process before getting demand because
fermentation process takes time if all natural processes and sustainability practices are used. It
would help this company out in providing products to customers in a timely manner and making
them feel valued.
Waste hierarchy and it all stages can make it the market leader and in present, it can
increase customers’ retention as well as satisfaction rate that is vital for improved image and
productivity as well. Improved reputation, more new customers and increasing profit margin are
some advantages or opportunities that this company can take by making use of innovation and
creativity skills (Murdock and Dolezal, 2018).

Climate change also drives opportunity for the business. As low emission of carbon in the
environment can offer the best opportunities to business. Companies can protect their energy and
can manage their cost management. As for the Adnams company they are investing on waste
hierarchy to achieve the sustainability in their business. It creates a opportunity for the company
through this they can reduce the bad impact of waste in the environment. Through which
company is able to make their first carbon neutral beer company saves their money by using
limited resources as their aim is to protect the environment from harmful toxic gases emitted by
the excessive consumption of natural resources (Hino, Field and Mach, 2017). They design a
lightweight body for their beer material because of this they save their resources also it reduces
their cost of transportation so that it does not cause pollution in the environment. They have
reduced the involvement of more energy in their product development process also reduces the
harmful materials so that it do not cause carbon emission.
Reducing carbon emission can give many opportunities to the company as they can
easily make innovation or can save their transportation cost. This waste hierarchy allow company
to recycle their resources so that it will manage their cost invest on their production, which saves
the money so that company can invest this money on their other project. Company recycle
energy about 90% to save it for their further use which gives the cost efficiency also helpful for
the society. They have been using the bottles again by recycling it to preserve the environment
from the toxic gases by burning the plastic cans therefore it saves the money for the company
also makes it sustainable. Adnams company has their own water harvesting system through
which they can save water and use it for their production. Adnams company is made up of hemp
block which are subjected to give good thermal quality so that no refrigeration is need. Better
structure of their warehouse gives the opportunity to the company as they all are made to subject
to preserve the resources. Hence, adaptability of waste hierarchy system is beneficial for the
company to deliver sustainable product in the market which will be able to attract more customer
therefore company can achieve their successive goals (Omann and et.al 2020).

CONCLUSION
From the above report it is concluded that sustainability brings more opportunity for the
business as it allowed to protect the environment also give cost efficiency to the company.
Through which company could easily grow their business. Adnams company practised all the
sustainability in their business to protect the environment form toxic carbon emission. By using
waste hierarchy project company could achieve more sustainable goals in their business.
Therefore, climatic changes also drives opportunities as well as threats for the business.

REFERENCES
Books and Journals
de Paula Diniz, D., Carvalho, M. and Abrahão, R., 2021. Greenhouse gas accounting for the
energy transition in a brewery. Environmental Progress & Sustainable Energy. 40(2).
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Gold, S. and Schleper, M.C., 2017. A pathway towards true sustainability: A recognition
foundation of sustainable supply chain management. European Management
Journal. 35(4). pp.425-429.
Hino, M., Field, C.B. and Mach, K.J., 2017. Managed retreat as a response to natural hazard
risk. Nature Climate Change. 7(5). pp.364-370.
Kinigadner, J., Büttner, B. and Wulfhorst, G., 2019. Beer versus bits: CO2-based accessibility
analysis of firms’ location choices and implications for low carbon workplace
development. Applied Mobilities. 4(2). pp.200-218.
Murdock, A. and Dolezal, N., 2018. Exploring Corporate Social Responsibility in a Social
Business: The Workers Beer Company. Symphonya. Emerging Issues in Management.
(1). pp.91-103.
Nawaz, W. and Koç, M., 2018. Development of a systematic framework for sustainability
management of organizations. Journal of Cleaner Production. 171. pp.1255-1274.
Omann, I. and et.al 2020. Assessing opportunities for scaling out, up and deep of win-win
solutions for a sustainable world. Climatic Change. 160(4). pp.753-767.
Sarvari, H. and et.al., 2019. A risk based approach to evaluating the impacts of Zayanderood
Drought on sustainable development indicators of riverside Urban in Isfahan-
Iran. Sustainability. 11(23). p.6797.
Yang, M., Vladimirova, D. and Evans, S., 2017. Creating and Capturing Value Through
Sustainability: The Sustainable Value Analysis Tool A new tool helps companies discover
opportunities to create and capture value through sustainability. Research-Technology
Management. 60(3). pp.30-39.