Date Published: 04/2022

Capital Brewing Co is a Canberra-based independent craft brewery producing a range of award-winning beers known as Good Natured Brews. Operating from its Fyshwick site, the business combines brewing, hospitality and retail, with a popular taproom and eatery.

Capital Brewing Co has achieved carbon neutral certification under the Australian Government’s Climate Active program for both its organisation and its products. This milestone represents the first certified carbon neutral beer in Australia.

Embedding Sustainability into Operations

Since its founding in 2016, Capital Brewing Co has embedded sustainability into its operations. Co-founders Tom Hertel and Laurence Kain established a culture of continuous improvement, focused on reducing environmental impact across all aspects of the business.

This long-standing commitment is now formally recognised through Climate Active certification, reinforcing the brewery’s leadership in sustainable brewing practices.

Sustainability Initiatives

Prior to certification, Capital Brewing Co implemented a range of initiatives to reduce energy, water, waste and emissions, including:

• Transitioning to 100 per cent renewable electricity.

• Diverting approximately 709 tonnes of spent grain, hops and yeast from landfill each year, supplying compostable material to support organic farming.

• Installing heat exchangers between the brew deck and fermenters.

• Upgrading to a water-cooled refrigerant system with low global warming potential.

Measuring Emissions in the Brewing Industry

The Australian brewing sector has limited benchmark data for carbon footprint measurement. To address this, Capital Brewing Co engaged Pangolin Associates to develop a robust and tailored emissions assessment.

The brewery’s emissions profile includes industry-specific factors, such as globally sourced ingredients and the treatment of production by-products. The diversion of organic waste to compost results in avoided emissions while supporting regenerative agricultural practices. Pangolin’s work enabled Capital Brewing Co to confidently prepare and submit its Climate Active documentation, while also establishing a framework that can support broader adoption across the craft brewing sector.

Life Cycle Assessment and Emissions Scope

Capital Brewing Co undertook a comprehensive life cycle assessment covering all Scope 1, Scope 2 and Scope 3 emissions. This approach assessed:

• Direct emissions from on-site operations.

• Indirect emissions from purchased electricity.

• Upstream and downstream emissions across the supply chain.

This whole-of-value-chain approach ensures a complete understanding of the brewery’s environmental impact.

Carbon Offsetting Approach

To achieve carbon neutrality, Capital Brewing Co offset emissions that could not be eliminated through reduction initiatives.

Pangolin supported the selection and management of certified carbon credits. The brewery chose to support Orana Natural Capital projects in regional Australia, which contribute to biodiversity conservation, threatened species recovery and regenerative agriculture.

To meet Climate Active requirements, these units were paired with internationally recognised biomass energy credits from the Anhui Guzhen project in China, ensuring compliance with global certification standards.

Measurable Outcomes

Capital Brewing Co has achieved strong environmental outcomes through its carbon neutral certification:

• Offsetting 100 per cent of Scope 1, Scope 2 and Scope 3 emissions, totalling 1,120 tonnes of carbon dioxide equivalent.

• Avoiding an additional 259 tonnes of emissions annually through organic waste diversion.

• Achieving efficient water use, with 4.1 litres of water required per litre of beer produced.

Industry Impact

By achieving carbon neutral certification for both its products and operations, Capital Brewing Co has set a new benchmark for the Australian brewing industry. This work demonstrates that ambitious climate action is achievable within the craft brewing sector and provides a practical model for other producers seeking to measure, reduce and manage emissions. Through its leadership, Capital Brewing Co is contributing to broader industry change, encouraging more sustainable practices and supporting the transition to a lower emissions future.