Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible drinking
• Sustainable supply chain
• Employee well-being

Environmental Achievements

• Avandis joint venture optimised recycling processes, recycling almost all packaging materials and cutting rinsing fluid use by 40%
• Main glass supplier moving towards achieving clear CSR goals
• Main sugar supplier making good progress with reducing greenhouse gas emissions, reducing energy usage and cutting CO2
• Main alcohol supplier working on reducing environmental footprint
• Main carton supplier working on reducing CO2 production, cutting water usage and on certified sourcing of raw materials
• Initiatives to minimise transport distances, use multimodal shipping, move production sites closer to customers, bottle locally, reduce pallet usage, and source closer to production sites

Social Achievements

• Employee Share Participation Plan (ESPP) allowing employees to invest in company shares at a discount
• Support for various social initiatives, including dance4life, raising almost €35,000 for a campaign to end child marriage in India
• Focus on creating a positive work environment with equal rights and opportunities for all employees
• Employee events to increase solidarity and team spirit

Governance Achievements

• Formalisation of risk control systems and documentation of the internal control framework
• Code of conduct established and compliance monitored
• Whistle-blower policy in place
• Annual self-assessment of Supervisory Board effectiveness

Climate Goals & Targets

Environmental Challenges

• One-off stock reductions due to supply chain adjustments in the US, Australia, and South East Asia
• Global presence in a highly regulated market with potential for sudden regulatory changes (e.g., excise duty increase in Belgium)
• Currency fluctuations impacting commercial and financial results, particularly in emerging markets
• Declining Dutch market for domestic spirits

Mitigation Strategies

• Optimisation of global distribution platform, signing new distribution agreements and renewing existing ones
• Increased investment in global brands, particularly in the US and Russia
• Hedging agreements for currency exposure
• Closer relationship with distribution partners to increase visibility and predictability of supply chain changes
• Growth in other markets compensating for decline in domestic spirits market

Supply Chain Management

Supplier Audits: Annual monitoring of suppliers’ progress in sustainability

Responsible Procurement

• Sustainable sourcing of materials and services
• CSR included in annual supplier evaluation (Avandis)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EU-IFRS, Dutch Corporate Governance Code

Certifications: BRC 6 (Avandis)

Third-party Assurance: Ernst & Young Accountants LLP

Environmental Metrics

ESG Focus Areas

• People (diversity, inclusivity, well-being, development, community involvement)
• Planet (packaging, CO2 reduction, sustainable sourcing)
• Pleasure (responsible cocktail consumption)

Environmental Achievements

• Aiming for a 20% CO2 reduction by 2035 and net-zero by 2050
• Targeting maximum recyclable glass bottles and maximum usage of recycled packaging materials by 2030

Social Achievements

• Continued personalized training, development, and well-being programs for all staff
• Implemented inclusivity training program
• Launched an international scholarship program for bartending training to disadvantaged and minority students

Governance Achievements

• Developed a more explicit, measurable, and profound ESG strategy
• Embedded ESG strategy into day-to-day operations

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions (raw material shortages, particularly glass)
• Unprecedented input cost inflation
• Industry-wide glass shortage in the US
• Weakening consumer purchasing power in the US and other markets
• COVID-19 impact in China

Mitigation Strategies

• Expanded contingency options (sourcing, production, logistics)
• Invested in planning capabilities
• Extended lead times
• Built safety stock levels
• Hedged or locked in prices for key raw materials
• Temporarily moved production to the Netherlands to mitigate US glass shortage
• Implemented additional sales price increases

Supply Chain Management

Responsible Procurement

• Product quality standards
• Code of Conduct
• Fair working principles
• Good land stewardship

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (drought, flooding, forest fires) impacting raw materials

Transition Risks

• Regulatory changes related to alcohol
• Changes in consumer preferences

Sustainable Products & Innovation

• Bols Ready-to-Enjoy Cocktails (in recycled PET Tubes and multi-serve bottles)
• Damrak Virgin 0.0 (non-alcoholic gin)
• Fluère (non-alcoholic spirits brand)