Sustainability is a way of operating to minimize negative impacts on the environment and use resources more effectively. Not only can it be a brand enhancer, as many potential customers feel better about doing business with companies that operate sustainably, but it can also save you money by eliminating waste and effectively using resources.
Every stage of brewing presents opportunities to operate more sustainably and, possibly, save money at the same time. From the water, energy, and other resources used for each batch of brew to sourcing, packaging, and transporting your product – not to mention all of the resources used when running a facility – there are numerous ways to reduce pollution and waste, promote energy efficiency, and lower greenhouse gas emissions.
An easy place to start is with your facility. Explore using LED lighting. Install energy-efficient windows and doors. Motion control lights, touchless taps in sinks, low-flow toilets, autoflush sensors, and hand dryers in bathrooms can help save energy and water. Even when buying paint, furniture, or cleaning products, there are eco-friendly options available. When it comes to the power you need for your entire operation, you may want to consider using renewable energy like solar or wind.
As for the actual brewing process, look for sustainable options at each stage. Starting with sourcing, if possible, grow some of your own ingredients (eliminating shipping and packaging costs); opt for organic; and source locally to improve freshness and reduce shipping and storage costs.
Turning to production, there are numerous to minimize waste and recycle. Reduce water and electricity consumption with retrofits or upgrades to new energy-efficient, automated equipment. Inspect equipment regularly for leaks and maintenance needs. Explore closed-loop water and cooling systems; heat exchangers to capture and reuse heat; and more.
When it comes to packaging, explore using recyclable or biodegradable materials. Not only is it environmentally friendly, but it also puts your business in a better position should legislation on reducing plastic and other materials in packaging come to fruition.
As for transportation, you may be able to reduce associated fees and carbon emissions by sourcing locally. If you have business vehicles, there are tax incentives available to go electric.
Finally, sustainability efforts offer ways to strengthen engagement with your employees and the surrounding community. Involve employees in your efforts by asking for their ideas and suggestions. Show you care about their development by paying for them to get sustainability certifications. Engage with the community by supporting and donating to environmental causes. Be a good neighbor and partner with local farms that can use wastewater and spent grains to feed livestock or for composting (you may even be able to charge a small fee).
Government resources are available to support your sustainability efforts. The U.S. Environmental Protection Agency administers the Energy Star program. NYSERDA, the New York Energy Research and Development Authority, offers services and resources to help you identify energy-saving opportunities, map out a strategy, and even find equipment. Both can also help direct you to related tax incentives.
For example, under Section 179, you can write off the purchase price of machinery, software, and vehicles. Plus there’s a 60% bonus depreciation that allows you to deduct qualifying costs for equipment placed into service in 2024. If you do research and development related to water recycling and waste management, you may qualify for an R&D tax credit. New York sales tax exemptions may also be available on certain purchases.
While you focus on the many aspects of running a successful brewery and distillery business, you can count on RBT CPAs to be your trusted advisor for accounting, audits, taxes, and more. Learn how we can be Remarkably Better Together by contacting us today.
RBT CPAs never offshore work outside of the U.S., so you always know who is handling your financial information.