Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Employee well-being
• Community engagement
• Environmental responsibility
• Energy efficiency
• Water management
• Waste reduction

Environmental Achievements

• Energy efficiency initiatives
• Responsible water management
• Recovery of most packaging waste
• Increased warehousing capacity by over 40% in Logistics Centre

Social Achievements

• Ongoing training and development programs for employees
• Engagement workshops for employees
• Stronger performance management culture
• Employee Assistance Programmes
• Home loan interest subsidy scheme for employees
• Support for employees with medical problems
• CSR Day initiative
• Sponsorships of major charitable events
• Promoting the industrial heritage of the Maltese Islands
• Co-operating with the University of Malta
• Participation in national student-exchange programs
• Assisting with environmental projects
• Liaising with NGOs and providing employment opportunities for people with disabilities

Governance Achievements

• Sound corporate governance
• Established several board committees (Corporate Governance, Related Party Transactions, Audit, Board Performance Evaluation, Nomination, New Ventures/Acquisitions/Mergers, Remuneration)
• Regular board meetings
• Transparent reporting to shareholders and the market

Climate Goals & Targets

Environmental Challenges

• Fierce competition in the beverage market
• Changing demographics and consumer preferences
• Evolving technologies
• Increased focus on health and wellness
• Changing retail landscape
• Potential for public policy and legislative measures (e.g., sugar tax)
• Price competition in the water market

Mitigation Strategies

• Innovation and export strategies
• Brand upgrading and new product launches
• Investment in state-of-the-art facilities
• Focus on understanding consumer needs and wants
• Developing brands aligned with consumer preferences
• Offering better value and convenient water supply packages
• Restructuring to maintain competitiveness and efficiency

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions through investments in projects and plant, more efficient utilization of water and electricity.
• Reduced water use index.
• Reduced dependence on municipal water sources through rainwater harvesting and improved production line processes.
• Improved energy usage efficiencies with new boiler and chiller.
• Over 60% of distribution trucks with Euro 5 or 6 emission standards by year-end.
• Introduction of electric cars to the fleet.
• Initiatives to facilitate waste separation and segregation for recycling.
• Discontinued use of PET bottled products for internal consumption, replaced with glass bottles.
• Replaced single-use items in canteens with reusable alternatives.
• Switched from heavy fuel oil to light heating oil.

Social Achievements

• Organized engagement workshops for employees.
• Over 11,500 hours of specialized training implemented.
• Negotiated four-year collective agreements with unions, resulting in enhanced remuneration packages and working conditions.
• Organized wellbeing week, sports and social occasions, and recognition events.
• Awarded Equality Mark for pay equity and diversity efforts.
• Appointed Francesca Curmi as brand ambassador for San Michel Table Water.

Governance Achievements

• Established an Environment and Resource Management Forum.
• Established new managerial roles for effective coordination of resources.
• Actively participating in discussions for the introduction of a national Beverage Container Refund Scheme (BCRS).
• Full alignment with environmental objectives of the BCRS.

Climate Goals & Targets

Environmental Challenges

• Meeting financial targets and deadlines set by the pace of market developments.
• Mounting employment costs.
• Increased pressure from consumers, lobby groups, and legislators regarding plastic waste, sugar consumption, and alcohol consumption.
• Declining volumes of traditional lagers.
• Increased competition in the soft drinks market.
• Increased distribution costs.
• Challenging recruitment environment.

Mitigation Strategies

• Implemented operational improvements and enhanced competitiveness.
• Continued focus on improving overall operational efficiency and capital investments.
• Investing in discovering and understanding consumer preferences of Millennials and Generation Z.
• Embracing change and adapting commercial strategies.
• Investing in a new packaging plant with robotic technology for reduced operating costs and improved quality.
• Comprehensive programme to improve manufacturing processes.
• Tenders for renewal of steam generation boilers and refrigeration compressor for additional savings.
• Upgrading beer processing control systems.
• Modernising distribution fleet to reduce carbon footprint.
• Investing in initiatives to facilitate waste separation and segregation.
• Implementing a new ERP system for improved efficiencies.
• Effective marketing campaigns to increase in-store visibility and consumer pick-up.
• Strengthening central head office functions to maximize employee performance.

Supply Chain Management

Responsible Procurement

• Selecting suppliers and raw materials aligned with Group values; insisting that partner firms are registered, certified, and possess strong environmental credentials.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• New Kinnie PET bottles.
• Farsons Double Red Nitro in a 440ml can.
• Cisk Chill Ginger & Lime.
• Carlsberg 0.0 Non-alcoholic beer.
• New Kinnie branding.

Awards & Recognition

• Gold Medal in the Brussels Beer Challenge (Cisk Pilsner)
• World’s Best Lager – Czech Style Pale (Cisk Pilsner)
• Silver medal at the International Beer Challenge (Cisk Pilsner)
• Bronze Award in the Australian Beer Awards (Cisk Pilsner)
• Bronze Medal in the European Beer Star competition (Blue Label)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Halved energy consumption and water usage over 11 years.
• 80% of commercial vehicles upgraded to ‘Euro 6’ standard.
• 14% of cars are now fully electric.
• Materially exceeded the targeted 60% recycling obligation.

Social Achievements

• Launched an attractive and friendly HR manual.
• Organised 13,380 total training hours for nearly 2000 participants.
• Implemented an Advanced Leadership Programme.
• Certified with the Equality Mark.

Governance Achievements

• Established various Board Committees (Corporate Governance, Related Party Transactions, Audit and Risk, Board Performance Evaluation, Nomination, New Ventures/Acquisitions/Mergers, and Remuneration).
• Implemented measures to address potential conflicts of interest.

Climate Goals & Targets

Environmental Challenges

• Cautious market conditions and gradual slowdown in customer payment patterns.
• Tighter labour market leading to higher payroll costs.
• Margin compression due to acute competition.
• COVID-19 pandemic causing a sharp contraction in economic activity and significant impact on demand.

Mitigation Strategies

• Strict cost containment, curbing discretionary and marketing spend, lower production runs.
• Introduction of shut down days to reduce payroll costs.
• Deferral of capital expenditure projects and robust working capital controls.
• Application for temporary capital moratoria on bank loans.
• Focus on inventory levels and collection of trade receivables.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortages

Sustainable Products & Innovation

• Cisk Excel (low-carbohydrate beer)
• Kinnie Zest (sugar-free)

Awards & Recognition

• Equality Mark

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainability

Social Achievements

• Staff retention initiatives

Governance Achievements

• Establishment of a Remuneration Committee composed entirely of Non-Executive Directors

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Employee Well-being
• Circular Economy
• Responsible Drinking
• Community Engagement
• Human Rights

Environmental Achievements

• Reduced energy consumption by 7% compared to 2009.
• Reduced water consumption.
• Increased glass recycling through on-site crushing equipment.
• Exceeded 60% recycling obligation for packaging waste.
• Reduced fuel consumption by 12% due to reduced deliveries and drive times.

Social Achievements

• No redundancies despite significant loss of business.
• Implemented stringent health and safety measures to minimize virus spread.
• Provided employee support through the Employee Assistance Program.
• Undertook training and development initiatives, including online programs.
• 8,755 training hours organized for nearly 1,455 participants.
• Several entities received the HR Quality Mark.
• Simonds Farsons Cisk plc awarded the Training at Work Award.

Governance Achievements

• Implemented stringent cost containment measures.
• Board and Management took a cut in remuneration.
• Open and frank communication with employees and union representatives.
• Investment in a Human Resources Information System.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic significantly impacted trading performance.
• Group turnover fell by 29.4%.
• Significant reduction in turnover across all business segments.
• Suppressed economic environment and decline in demand.
• Closure of bars, pubs, social clubs, and restaurants.
• Sharp contraction in tourist arrivals.
• Reduced sales of flagship brand Cisk Lager.
• Negative impact on sales of soft drinks and spirits.
• Challenges for international business due to pandemic restrictions.
• Significant decline in sales and profitability of subsidiary FBIC.

Mitigation Strategies

• Implemented cost containment measures and operational efficiency initiatives.
• Curtailed non-essential expenditure.
• Re-examined operating and capital expenditure allocations.
• Postponed a number of planned projects.
• Stepped up promotional activity to strengthen selling efforts.
• Shifted marketing strategies to targeted promotional schemes.
• Invested in eCommerce presence.
• Implemented stringent health and safety measures.
• Introduced remote working and flexible work arrangements.
• Provided employee support and well-being initiatives.
• Undertook training and development initiatives.
• Focused on supermarket sales to mitigate decline in on-premise sales.
• Widened sales and distribution to smaller retail shops.
• Strengthened promotions and activations in retail outlets.
• Introduced new products to boost sales.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, natural disasters, and water shortages.

Sustainable Products & Innovation

• Cisk 0.0 (alcohol-free lager)
• Farsons Green Hop IPA
• Kinnie Spritz

Awards & Recognition

• Training at Work Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Staff retention initiatives

Governance Achievements

• Remuneration Policy approved by Shareholders

Climate Goals & Targets

Environmental Challenges

• Business challenges arising from the Covid-19 pandemic

Mitigation Strategies

• Members of the Board and the GCE voluntarily waived emoluments

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Social Responsibility
• Employee Engagement
• Environmental Responsibility

Social Achievements

• Staff retention initiatives

Governance Achievements

• Remuneration Policy approved by Shareholders

Climate Goals & Targets

Environmental Challenges

• Business challenges arising from the COVID-19 pandemic

Mitigation Strategies

• Members of the Board and the GCE voluntarily waived a total sum of €28,443
• Members of the SMB voluntarily waived the sum of €37,392

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Environmental Achievements

• Further investment in renewable energy initiatives such as a major extension of PV panels on the Mriehel site.
• Consideration is also being made on the further investment in changing its motor vehicle fleet to electric, thus contributing further to the reduction of the Group’s carbon footprint.
• Investment in the BCRS scheme for beverage container recycling.

Social Achievements

• The Brewhouse project, repurposing the old brewhouse into a mixed-use destination including a café, brewery experience, bar, brand store, and gastrobrewpub, creating jobs and community engagement.
• Opening of six new outlets in the franchised food segment.

Climate Goals & Targets

Environmental Challenges

• Russia-Ukraine war causing supply chain disruptions and inflationary pressures.
• Labor shortages in Malta.
• Significant cost increases in the franchised food retailing segment.
• Product shortages and shipping difficulties in the importation segment.
• Surge in costs and supply chain shortages in the food importation segment.

Mitigation Strategies

• Swift action to address supply chain disruptions and inflationary pressures.
• Investment in a dedicated food distribution centre to address space constraints.
• Cost containment initiatives to mitigate inflationary pressures.
• Increase in inventory to meet demand despite supply chain challenges.
• Operational and cost efficiency measures to improve profitability.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainability

Social Achievements

• Staff retention initiatives

Governance Achievements

• Establishment of the Remuneration and Corporate Governance Committee (RCGC)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Energy Efficiency
• Digital Transformation

Environmental Achievements

• Expanding renewable energy initiatives through additional investments in photovoltaic panels
• Establishment of a CO2 recovery plant to enhance production supply chain security
• Continued commitment to the operation of returnable and refillable containers

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Highly competitive environment for importers exerting pressure on margins
• Seasonal fluctuations impacting business performance
• Increasing complexity of evolving EU regulations for food and beverage sectors adding compliance costs
• Uneven playing field on domestic regulatory and fiscal fronts
• Intensifying competition in the market

Mitigation Strategies

• Careful planning and execution to sustain momentum
• Cost containment, margins optimization, innovation and efficiency enhancement initiatives
• Strategic investments and operational improvements
• Leveraging strengths to mitigate potential impacts on overall performance
• Maintaining highest levels of compliance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IAS 34 – Interim Financial Reporting

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed