Climate Change Data

Environmental Metrics

ESG Focus Areas

• Conservation of Water Resources
• Climate and Environment
• Value Chain Partnerships
• Workplace
• Product Responsibility
• Community Development

Environmental Achievements

• Reduced water consumption by 23% in brewing operations and 21% in malt production compared to 2008.
• Reduced wastewater discharge by 32% in brewing operations and 18% in malt production compared to 2008.
• Reduced energy consumption by 15% and CO2 emissions by 14% per unit compared to 2008.
• Attained 97.5% recovery in solid wastes and by-products.

Social Achievements

• Maintained an accident frequency rate of 2.36 and a lost workday rate of 17.7.
• Provided 28 hours of training per employee.
• Achieved 100% ISO22000/HACCP certification scope.
• Local purchases were 90.4% per activity and 86.2% per spending.

Governance Achievements

• Published Anadolu Efes Supplier Working Principles.
• Successfully audited 40% of Tier 1 Group suppliers in the last three years.

Climate Goals & Targets

Environmental Challenges

• Water scarcity
• Climate change impacts on agriculture
• Maintaining responsible consumption practices

Mitigation Strategies

• Water efficiency projects
• Agricultural R&D programs
• Responsible consumption campaigns
• Supplier audits and working principles

Supply Chain Management

Supplier Audits: 40% of main supplier group audited in last three years

Responsible Procurement

• Anadolu Efes Supplier Working Principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UN Global Compact, UNGC Water Mandate

Certifications: ISO 14001 (71% of facilities), ISO 50001 (some facilities), ISO 22000/HACCP (100% of production plants)

Environmental Metrics

ESG Focus Areas

• Environment
• Community
• People
• Value Chain

Environmental Achievements

• 15 percent reduction in energy consumption per product in beer production (compared to 2008)
• 9 percent decrease in total greenhouse gas emissions (compared to 2008)
• 38 percent decrease in water consumption (compared to 2008)
• 41 percent decrease in wastewater discharge (compared to 2008)

Social Achievements

• Ratio of female executives reached 38%
• Accident frequency rate dropped by 32% year-on-year
• Trained 97% of dealers and distributors (nearly 2 hours of training per person)
• Provided 1,600 total hours of training to 200 manufacturers as part of the Contract Purchase Model
• Sourced 72% of raw materials from contract farmers
• Supported the Four Seasons of Foça, Birds Calling You, and A History Break initiatives as part of the “Future is in Tourism” Project

Governance Achievements

• Started climate reporting in Turkey as part of the CDP Climate Program
• Had greenhouse emissions data verified

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on barley and hops farming, water sources, and physical assets
• Water scarcity in Turkey projected to worsen by 2030

Mitigation Strategies

• Investing in low-emission technologies
• Initiatives to encourage energy efficiency
• Investing in energy-efficient coolers
• Optimizing logistics network
• Investing in projects to improve operational water efficiency
• Water reuse, insulation, leak elimination, reverse osmosis, recycling, and optimization of current lines

Supply Chain Management

Responsible Procurement

• 2015 Code of Conduct for Suppliers
• Supplier Partnership Program in Anadolu Efes Russia
• Contract Purchase Model

Climate-Related Risks & Opportunities

Physical Risks

• Lower productivity in barley and hops farming
• Pressure on declining water sources
• Increased risks on physical assets due to severe weather events

Opportunities

• Developing drought-proof products

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, UNGC CEO Water Mandate

Certifications: ISO 14001, ISO 50001, ISO 9001, ISO 22000, HACCP

Third-party Assurance: Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (Ernst & Young)

Sustainable Products & Innovation

• 15 barley and seven hops types developed and registered

Awards & Recognition

• Best Corporate Social Responsibility Project at the TÜHİD Golden Compass Public Relations Awards (Future is in Tourism)
• Sustainability - Refik Baydur Special Award at the TISK Corporate Social Responsibility Awards (Future is in Tourism)
• Gold Medal in the Corporate Social Responsibility Category at the Hermes Creativity Awards (Future is in Tourism)
• Bronze Medal for Europe's Best Social Responsibility Project at the Stevie Awards (Future is in Tourism)
• Euroleague Devotion Award (Anadolu Efes Sports Club)
• Felis and Achievement awards at the MediaCat Felis Awards (Anadolu Efes Sports Club)
• Social Responsibility Project of the Year at the awards organized by Aydın University (Bring a Book Project)

Environmental Metrics

ESG Focus Areas

• Climate Change and Energy Management
• Water Risks and Management
• Waste and Packaging Management
• Sustainable Agriculture
• Community Development
• Talent Management
• Employee Engagement
• Occupational Health and Safety
• Responsible Sourcing
• Product Quality and Safety

Environmental Achievements

• Achieved energy savings of 26,000 MWh through environmental efficiency projects.
• Reduced 214,223 kg of cans and 181,224 kg of can pop tabs over three years.
• Achieved a total water saving of 308,000 m3 through water recycling, leakage fixing, and optimization.
• Prevented the emission of 101,000 tons of CO2 through energy efficiency improvements.

Social Achievements

• Launched the "Future is in Agriculture - Smart Agriculture" project with WWF Turkey.
• Supported 16 projects through the "Future is in Tourism" initiative, reaching nearly 150,000 people and creating employment for 300 women.
• Provided mentorship and financing support to three entrepreneur projects through "Future is in Entrepreneurship" project.
• Provided training to 132 dealers and distributors through the Dealer Development Program.
• Improved accident frequency by 50% and lost days by 66% in the past three years.

Governance Achievements

• Implemented the Anadolu Efes Code of Business Conduct and Ethics.
• Established anonymous reporting channels for ethical violations.

Climate Goals & Targets

Environmental Challenges

• Economic challenges in Turkey and globally.
• Climate change and diminishing resources impacting agriculture and food industries.
• Water scarcity.

Mitigation Strategies

• Adopting a holistic approach to managing global risks and a value-adding business model.
• Implementing sustainable agriculture practices, including developing drought-resistant crops.
• Investing in water efficiency projects.
• Implementing waste reduction and recycling programs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers Working Principles, Supplier Partnership Program (Russia), training programs for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (floods, droughts)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, UNGC CEO Water Mandate

Certifications: ISO 14001, ISO 50001, ISO 9001, ISO 22000, HACCP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Drought-resistant barley and hops seeds

Awards & Recognition

• Sustainable Development Goals Academy Awards for "The Future is in Agriculture" project.

Environmental Metrics

ESG Focus Areas

• Climate Crisis
• Water Risks and Management
• Circular Waste and Packaging Management
• Supporting Sustainable Agriculture and Farmers
• Responsible Sourcing
• Quality and Food Safety
• Contributing to the Local Economy
• Social Investments
• Talent Management
• Employee Engagement
• Gender Equality
• Occupational Health and Safety

Environmental Achievements

• Saved 220,000 m³ of water and $160,000 through operational water efficiency projects.
• Reduced carbon emissions per cooler by 66% compared to 2011.
• Saved 37,126 MWh of energy and prevented the emission of 613 tons of CO2 through efficiency and improvement activities.
• Reduced 10 tons of cans and 100 tons of can pop tabs over the past three years (Can and Can Pop Tab Reduction Project).

Social Achievements

• Published the Gender Equality Guide.
• Combined all training and development opportunities under the name of Efes Labs.
• Increased employee engagement by 4 points to 83% (Turkey).
• Decreased employee turnover rate to 10%.

Governance Achievements

• Received 31 notifications regarding ethical breaches, all of which were reviewed and resolved.
• Joint venture received 64 notifications via the EU InBev Efes’ ethics lines, all reviewed and resolved.

Climate Goals & Targets

Environmental Challenges

• Climate change affecting the supply continuity of agricultural raw materials.
• Plastic pollution.
• Water scarcity.

Mitigation Strategies

• Investing in efficiency projects to reduce water consumption.
• Renewed over 80 water resources in Russia.
• Joined the Business Plastic Initiative.
• Working with universities, suppliers, and entrepreneurs to develop more environmentally friendly packaging solutions.
• Aiming to reduce plastic use to 0.5% in the next three years.
• Implementing the Contract Farming Model for sustainable agriculture.
• Providing training and funding for sustainable agriculture techniques.
• Developing drought-resistant barley and hops seeds.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Working Principles

Climate-Related Risks & Opportunities

Physical Risks

• Increasing temperatures, changing rainfall regimes, frequent extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC, UNGC CEO Water Mandate

Certifications: ISO 50001, ISO 14001, OHSAS 18001 (16 facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly beer mats

Awards & Recognition

• Two awards at the 18th Golden Compass Award ceremony
• Platinum Award at the Corporate Social Responsibility Summit for Accelerate 2030 program
• “Most Effective Company/New Start-Up Collaboration” award with Pubinno
• First prize in the “Inventors” category at Anadolu Group’s An Idea Festival with Pubinno

Environmental Metrics

ESG Focus Areas

• Climate Crisis
• Water Risks and Management
• Circular Waste and Packaging Management
• Contributing to Local Economies
• Social Benefit Investments
• Talent Management
• Employee Engagement
• Gender Equality
• Occupational Health and Safety
• Sustainable Farming and Farmer Support
• Responsible Sourcing
• Quality and Food Safety

Environmental Achievements

• All Turkish beer and malt plants received Zero Waste Certificates.
• Reduced waste by 18,000 tons, saving US$138,000.
• Saved 288,000 m3 of water, saving US$120,600.
• Saved 21,739 MWh of energy, saving US$611,000.

Social Achievements

• Implemented many social benefit projects during the pandemic.
• Achieved 83% employee loyalty with 91% survey turnout.
• Provided 13 hours of training per employee.
• Received the “Equality for Women at Work Certificate”.

Governance Achievements

• 86 notices forwarded to the ethical line, 78 resolved.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions.
• Climate change impacts on agriculture and water resources.
• Supply chain disruptions.

Mitigation Strategies

• Implemented comprehensive health and safety measures during the pandemic.
• Implemented support programs for employees, dealers, and distributors.
• Focused on local procurement (87% of payments to local suppliers).
• Developed sustainable agriculture practices and supported farmers.
• Developed the +1 Resting Technique for beer production.

Supply Chain Management

Supplier Audits: 40 audits in Russia

Responsible Procurement

• Supplier Working Principles
• Local procurement (87% of payments to local suppliers).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Renewable energy investments
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, ISO 45001, Zero Waste Certificate (Turkey)

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Biodegradable festival cups
• Materials made with olive seeds
• Plastic-free product packaging

Awards & Recognition

• Monde Selection awards
• Stevie Awards
• Brandon Hall awards
• Green Point Incentives Award
• IDC Turkey Digital Transformation Awards
• Georgia Global Compact Network Corporate Responsibility Award
• WWF-Turkey Green Office Diploma

Environmental Metrics

ESG Focus Areas

• Environment
• Employees
• Society
• Value Chain

Environmental Achievements

• Reduced net greenhouse gas emissions by 5.6 thousand tons of CO2 in 2021, reducing carbon intensity in beer production by 7%
• Reduced purchase of new crates by 11% in 2021, preventing the production of 100 tons of new plastic and reducing virgin plastic use by 404 tons
• All malt and beer operations in Turkey have zero-waste certificates. In 2021, only about 1% of waste generated was sent to landfills.
• Saved 15,202 MWh of energy through efficiency and improvement efforts, equivalent to the annual electricity consumption of approximately 4,000 people.

Social Achievements

• Invested 12.6 million TRY in community development (30% increase compared to 2020)
• Realized nearly 40 social benefit projects
• Received independent assurance for Gender Pay Ratio by Compensation Policy in all operations except Russia and Ukraine.
• Increased training hours per employee by 113% to 27.78 hours.

Governance Achievements

• Included in the Istanbul Stock Exchange Corporate Governance Index with 96.3 points
• Updated governance structure in 2021 to maximize sustainability integration into corporate strategy
• Established Global Sustainability Committee to manage sustainability efforts across all operating countries.

Climate Goals & Targets

Environmental Challenges

• Challenging conditions of the pandemic and consequences of the climate crisis
• Supply chain disruptions
• Increasingly severe weather events and natural disasters
• Economic uncertainties and price increases

Mitigation Strategies

• Proper supply chain management
• Implementation of crucial practices on energy and water efficiency, renewable energy transition, circular economy, reliable supply, and sustainable agriculture
• Increased operational efficiency and good management of hedging instruments
• Development of new products in needed areas and expansion of export volume.

Supply Chain Management

Supplier Audits: Environmental and social audits conducted in 2021; no non-compliance detected.

Responsible Procurement

• Code of Conduct for Suppliers
• Supplier evaluation procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Floods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy production and supply

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC CEO Water Mandate, UN Women’s Empowerment Principles (WEPs), Capital Markets Board’s (CMB) Sustainability Principles Compliance Framework, WEF-Stakeholder Capitalism Sustainable Value Creation Reporting Criteria

Certifications: ISO 50001 Energy Management System, ISO 14001 Environmental Management System, OHSAS 18001 or ISO 45001 Occupational Safety and Health Certificate, FSSC 22000 5.1 Food Safety System certification

Third-party Assurance: PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş., Bureau Veritas Gözetim Hizmetleri Ltd. Şti.

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Contribution to 15 SDGs and 36 sub-targets with 49 projects.

Sustainable Products & Innovation

• Gluten-free beer
• Low alcohol and non-alcoholic products

Awards & Recognition

• Boğaziçi University’s Most Successful Company of the Year Award in Sustainability
• UN Global Compact / Partnership for Sustainability Awards (Socio-economic Development Category)
• Monde Selection medals

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Consumption and Safety
• Circularity and Waste Management
• Sustainable Packaging
• Supply Chain Risks and Resilience
• Sustainable and Responsible Procurement
• Biodiversity
• Local Procurement
• Social Investment and Impact
• Sustainable Agriculture
• Responsible Consumption
• Responsible Marketing
• Employee Health, Safety, and Welfare
• Equality, Diversity, and Inclusion
• Talent Development
• Employee Engagement
• Ethics and Human Rights
• Volunteering
• Economic Impact and Growth
• Innovation and Product Development
• Product Quality and Safety

Environmental Achievements

• Reduced total waste by 15% compared to the previous year, amounting to 544,577 tons. Only 1% of this amount was sent to disposal facilities.
• Reduced annual emissions by 8,815 tons of CO2eq and saved 6.18 kwh/hl of energy per beer produced through various projects.
• Achieved a 30% reduction in water consumption.
• Reduced 92 tons of plastic through the Business Plastic Initiative commitment.
• Achieved a 233% increase in recycled/reused waste.
• Initiated the installation of a 12.5 MW solar panel system at the Konya plant, expected to reduce 6,500 tons of CO2eq emissions annually.
• In Georgia, transitioned to electric forklifts, saving 60 tons of LPG and reducing 176 tons of CO2eq emissions annually.
• In Moldova, achieved an annual energy efficiency improvement of 380,000 kWh and a reduction of 269 tons of CO2eq emissions through refrigerator compressor optimization.

Social Achievements

• Invested 9.8 million TRL in 26 projects positively impacting society.
• Supported over 1,000 theater plays and reached nearly 5,000 art lovers with Mavi Sahne (Blue Stage).
• Reached over 321,000 people with sustainable tourism projects.
• Supported the biodiversity of underwater life with the +1 Breath for the Sea initiative.
• Provided 300 hours of training to farmers on sustainable agricultural practices and contracted distribution of 5,219 tons of seeds.
• Implemented the All Well program to increase employee well-being in Türkiye.
• Implemented the ‘Wellness: Direct’ project in Kazakhstan to improve employee well-being.
• Updated parental leave policy in Russia, positively impacting over 3,500 employees.

Governance Achievements

• Established a Sustainability Committee to address sustainability and climate change developments.
• Incorporated sustainability performance into the performance management system, including ESG-focused criteria in the individual performance evaluation of relevant managers.
• Added a separate sustainability category to the CEO Awards program.
• Maintained a 96.3 Corporate Governance Rating in 2022.

Climate Goals & Targets

Environmental Challenges

• Climate crisis affecting continuity of operations.
• Responding to increasing regulatory pressure and investor demand.
• Adaptation to the transition to a low-carbon economy to be prepared for climate risks.
• Fluctuations in the availability, quality, and prices of raw materials due to climate risks.
• Potential impact of economic uncertainties on business continuity across the entire value chain.
• Social volatility due to economic recession and decline in purchasing power.
• Meeting changing customer expectations and the need for new product development.
• Making investments to adapt to technological developments.
• Monitoring climate technologies and integrating them into operations.
• Making studies and investments to increase efficiency in operations and value chain.

Mitigation Strategies

• Developed projects focusing on emission reduction, renewable energy, sustainable packaging, and water usage reduction.
• Exploring new markets and collaborations with international financial institutions.
• Developing productivity projects and expanding the use of hedging mechanisms.
• Exploring pre-stocking opportunities to minimize the impact of price increases and supply risks.
• Developing new products with an innovation perspective.
• Keeping talent by focusing on leadership and career development.
• Prioritizing in-house digitalization efforts and developing a cybersecurity framework.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Supplier evaluation procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Droughts
• Floods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards 2021, Value Reporting Foundation’s ‘Integrated Reporting Framework’, WEF’s ‘Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation’

Certifications: ISO 9001, ISO 22000, FSSC 22000 V5.1, OHSAS 18001 or ISO 45001

Third-party Assurance: Bureau Veritas Turkiye

UN Sustainable Development Goals

• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 14
• 15
• 17

The report maps 49 projects to 15 SDGs and 36 targets.

Sustainable Products & Innovation

• Efes 0.0 non-alcoholic beer
• Gluten-free beer
• Products made with recycled materials and recyclable packaging

Awards & Recognition

• Crystal Tree Award
• LACP Vision Awards Gold
• Felis 2022 Achievement Award
• SAP Awards
• Institutional Investor Research Teams - Best Company Award
• Bosphorus Environment Awards
• Russian National Credit Rating Agency - ESG index
• Green Brands and Business Solutions and Technologies Alliance - ESG Ranking
• Forbes - Best Employer Awards
• Moldova Chamber of Commerce - Grand Prix
• Best Brands Moldova
• Person of the Year in Communications (Moldova)
• CBS-AXA - Best Employer of the Year (Moldova)
• Best HR Dashboard (Kazakhstan)

Environmental Metrics

ESG Focus Areas

• Emissions & Energy
• Financial Impact
• Employee Health, Safety, & Well-being
• Ethics & Human Rights
• Supply Chain Risks & Resilience
• Sustainable Agriculture
• Product Quality & Safety
• Equality, Diversity & Inclusion
• Talent Development
• Customer Relations Management
• Data Security & Privacy
• Employee Engagement
• Biodiversity
• Circularity & Operational Waste
• Community Management
• Investment & Impact
• Water Consumption & Security
• Sustainable Packaging
• Innovation & Product Development
• Sustainable & Responsible Procurement
• Responsible Marketing
• Responsible Consumption

Environmental Achievements

• 3,335 tons of CO2e emission reduction
• 5,431 MWh in energy savings through projects
• 99% of total waste recycled or reused
• 802 tons of plastic reduction
• 6.6% emission reduction per beer production

Social Achievements

• 36 social benefit projects with 28.6 million TRL investment
• 159 million people reached through social benefit projects
• 88% employee engagement rate
• 5% employee turnover rate
• 12.7 million TRL investment in employee development

Governance Achievements

• Integration of sustainability risks into the risk management system and financial impact analysis
• 100% gender pay equality

Climate Goals & Targets

Environmental Challenges

• Water stress risk
• Supply chain risks
• Climate change impacts

Mitigation Strategies

• Sustainable agricultural practices
• Sustainable packaging initiatives
• Renewable energy investments
• Energy efficiency projects
• Waste reduction initiatives
• Local procurement
• Risk management system

Supply Chain Management

Responsible Procurement

• Sustainable and Responsible Procurement
• 93% local procurement rate

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Integrated Reporting

Social Achievements

• Anadolu Etap Tarım was the first agricultural Company in Türkiye to publish and commit itself to Sustainable Agriculture Principles in 2014.

Governance Achievements

• Published its first Integrated Report for the year 2022, highlighting value creation for stakeholders around six capital elements.

Climate Goals & Targets

Environmental Challenges

• Dynamic operating and macroeconomic environment
• Softer volumes in Türkiye and Pakistan soft drinks operations
• Volatile beer industry trends
• High inflation and pricing ability in phases in Türkiye beer operations
• Ongoing macroeconomic challenges in Pakistan affecting consumption patterns
• Unexpected increase in excise taxes in Pakistan

Mitigation Strategies

• Focus on financial discipline, revenue growth management, and zero-based expense management
• Timely price adjustments and prudent opex management in soft drinks
• Hedging mechanisms to mitigate the impact of yearly cost increases in beer
• Mid-year price increase following excise and VAT adjustments in Türkiye beer

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Environmental Challenges

• High inflationary environment affecting demand in CIS countries
• Macroeconomic challenges negatively impacting Pakistan operations

Mitigation Strategies

• Balanced pricing strategy in Russia
• Strong portfolio play and favorable pricing in Türkiye
• Proactive sales initiatives and innovative product launches in Russia
• Enhanced market penetration in Ukraine
• Value generation focused strategy in Kazakhstan and Georgia
• Proactive revenue growth management (RGM) actions and disciplined cost & opex management in CCI

Supply Chain Management

Climate-Related Risks & Opportunities