Tan-led Asia Brewery Inc. (ABI) has inked a power supply agreement (PSA) with Shell Energy Philippines, which requires the latter to supply at least 15 megawatts of renewable energy-generated electricity to the diversified beverage company.

In a statement, ABI noted that its shift to green energy on its power use had been aimed at stepping up its efforts “toward reducing its carbon footprint through the use of more sustainable materials including renewable energy.”

As stipulated in the power supply deal, “Shell Energy will supply ABI renewable energy for its manufacturing facilities in Luzon.”

The supply contract was signed between ABI President and COO Michael G. Tan and Shell Energy President and Chief Operating Officer Bernd Krukenberg. Shell Energy Philippines serves as the domestic power investment and retailing arm of Anglo-Dutch energy giant Shell.

ABI expounded its patronage of renewables is in line with the LT Group’s environmental, social and governance (ESG) initiatives, and the company “has been taking steps toward more sustainable ways of doing business.”

In particular, the Tan-led company shared that “instead of using newly-made glasses, ABI opted for cullet, recycled, broken or waste glass, in producing glass bottles.”

Way back in 2018, the beverage company narrated that it utilized about 72,000 metric tons of cullet (recycled broken or waste glass) – and that accounted for 61 percent of the raw materials used.

According to ABI, another sustainability-anchored material it has been using in manufacturing bottles is lahar – which is from the remnants of the Mount Pinatubo eruption in 1990s, with the Tan-controlled firm emphasizing that “about 56-percent of feldspar used in glass manufacturing was replaced by lahar, equivalent to 3,500 MT.”

“ABI ensures that nothing is wasted and thrown, even powdered glass wastes, which are utilized in their pavements and walkways within the Cabuyao, Laguna plant premises,” the company stressed.

The other sustainability undertakings being pursued by the Tan-led company include regular tree-planting activities, which started in 2016 – and that had been cast on a target of planting 1.0 million trees a year.

By far, 8.4 million trees had already been planted on cumulative basis by year 2020 – and that was primarily spearheaded by farmers in Sta Cruz, Ilocos Sur.

“With the help of local farmers, the company can plant fuelwood species for traceability and sustainability of wood for curing tobacco,” the beverage company emphasized.

On the part of Shell Energy Philippines, it has been advancing on its mid-century net-zero emissions goal; while also aiding customers to patronize clean energy solutions.