Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Circular Packaging
• Sustainable Agriculture

Environmental Achievements

• Reduced carbon emissions by 13.5% compared to 2019.
• 14.2% of purchased electricity from renewable sources in 2020.
• 100% renewable electricity at Ziyang brewery, China.
• 17% water usage reduction in breweries since 2017.

Social Achievements

• Supported 1,224 farmers in India during the pandemic.
• Launched Innovation Hubs in China, India, and Korea to support sustainable entrepreneurship.

Governance Achievements

• Board-level oversight of climate-related issues.
• Executive compensation linked to ESG performance.

Climate Goals & Targets

Environmental Challenges

• Increased cost of raw materials due to climate change.
• Increased stakeholder concern regarding climate change.
• Water availability challenges in certain regions.
• Lower than average precipitation and droughts in Telangana, India.

Mitigation Strategies

• Switching to lower-emission energy sources and deploying electric vehicles.
• Engaging with suppliers to promote sustainable agricultural practices.
• Implementing a comprehensive seven-step watershed management process.
• Investing in integrated watershed approach to address water challenges.

Supply Chain Management

Supplier Audits: 100% of key strategic suppliers

Responsible Procurement

• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water scarcity
• Droughts

Transition Risks

• Increased energy costs
• Increased cost of raw materials
• Changes in regulations

Opportunities

• Improved energy efficiency
• Shift in consumer preferences towards sustainable products

Reporting Standards

Frameworks Used: GHG Protocol, TCFD

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 6 (Clean water and sanitation)
• Goal 12 (Responsible consumption and production)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Water Stewardship
• Circular Packaging
• Smart Agriculture

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Action
• Water Stewardship
• Circular Packaging
• Smart Agriculture

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Action
• Water Stewardship
• Circular Packaging
• Sustainable Agriculture
• Empowering Value Chain Partners
• Thriving with Our People and Communities
• Food Safety & Product Quality
• Smart Drinking

Environmental Achievements

• 23.8% reduction of carbon emission intensity across our value chain (Scope 1, 2 & 3) and a 64.3% decrease within our own operations (Scope 1 & 2) against the baseline year 2017.
• 3 carbon neutral breweries (Wuhan, Jinzhou and Jiamusi).
• 10 breweries in China achieved RE100.
• 21 breweries across APAC installed solar panels on site; we contracted 66.4% of our electricity from renewable sources.
• Lowered water usage for beer production to 2.03 hl/hl across APAC, a 32.1% decrease compared to the 2017 baseline.
• Nanning Brewery recorded 1.09 hl/hl water usage for beer production – the lowest among ABI breweries globally and a benchmark for the world’s beer industry.
• India’s operation reached a 199% water replenishment rate in 3 breweries located in water-stress areas and returned 20 million hectoliters of water to the community.
• Replenished nearly 20 million hectoliters of water to our surrounding communities in China.
• 64.8% of our total beer volume in returnable packaging or made from a majority of recycled content.
• 54.4% of primary packaging made of recycled content.
• Reduced over 28,650 tons of packaging material usage.
• 100% of farmers we partnered with in China and India are skilled, connected and financially empowered.
• Supported 2,605 farmers in India through our barley program.
• Increased local barley harvesting in China by 50% to 60,000 tons, benefiting 5,000 farmers covering 8,000 hectares of land.

Social Achievements

• Launched 20+ smart drinking and road safety initiatives across APAC with over 15 years of commitment.
• Accumulated 740,000 kg of limes sold through the “Corona Extra Lime” project.
• 2.5+ million cans of emergency drinking water distributed to communities in need since 2015.
• 41,450 hours of volunteering under various initiatives.
• Supported 5 startups through our 100+ Accelerator.
• Inspired 117 ventures through our 100+ Innovation Lab.
• Organized a University Hackathon with 400+ applicants from 62 universities, covering 22 provinces and cities in China.

Governance Achievements

• Established an Ethics and Compliance Committee at the management level.
• 100% of our Board and 100% of our management completing Code of Business Conduct and anti-corruption trainings in 2023.
• Evolved our Audit Committee to the Audit and Risk Committee.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business, value chain, and communities (agricultural productivity, water availability).
• Water stress in various regions.
• Landfill problem and environmental pollution in some regions.
• Biodiversity loss.

Mitigation Strategies

• Developed a decarbonization plan (enhancing operational and energy efficiency, incorporating low-carbon energy sources, encouraging energy-efficient practices among value chain partners, promoting circularity initiatives, pioneering innovative cooling solutions, exploring nature-based solutions, collaborating with stakeholders).
• Implemented various methods to enhance water efficiency within our breweries (advanced technologies, ZLD strategies, VPO).
• Implemented green procurement practices to minimize waste at the source.
• Investing in the circular packaging solutions and practiced green procurement to minimize waste by eliminating single-use supplies and collaborating with suppliers.
• Enhanced processes to maximize reuse and recycling of packaging and materials, aiming to reduce waste.
• Implemented “Zero Waste” strategies in China and India to treat and repurpose waste materials.
• Implemented the Scope 3 reduction program among Supplier Strategic Alliance (SSA) to actively support our suppliers for their low carbon transition.
• Accelerated RE100 coverage and deployed sustainable innovations in our breweries and further developed green logistic solution.
• Developing a comprehensive soil health framework to assist our farmers and encourage biodiversity, enhance water quality, and sequester greenhouse gas emissions.

Supply Chain Management

Supplier Audits: 100% of existing suppliers assessed for compliance with social and environmental standards in 2023.

Responsible Procurement

• Responsible Sourcing Policy
• Supplier Strategic Alliance (SSA) program
• Vendor Strategic Alliance (VSA) program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Extreme cold
• Flooding
• Tropical cyclones
• Water stress and drought

Transition Risks

• Carbon pricing
• Low carbon transportation
• Low carbon heating
• Recycled packaging

Opportunities

• Transition to energy-efficient facilities and machinery
• Enhance the proportion of renewable energy in our energy portfolio
• Incorporate Electric Vehicles (EVs) into our fleet
• Invest in low carbon heating systems
• Employ advanced technologies to decrease packaging weights
• Enhance the utilization of recycled packaging materials

Reporting Standards

Frameworks Used: HKEX C2, GRI Standards 2021, UN Guiding Principles (UNGPs), CDP Water and Climate initiatives, TCFD recommendations, ISSB standards, UN SDGs

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• No-alcohol and low-alcohol beers (NABLAB)
• BarleySkin leather alternative

Awards & Recognition

• Net-Zero Leadership Award and Green Supply Chain Award
• Best Partnership Award of FamilyMart
• ECR Green Development Project Award
• Environmental Protection Enterprise Award
• Production Safety Award
• Best Risk Management Company
• Best Energy-Saving Practices in Wenzhou
• Safe Production Company in Jinzhou
• Green Factory Award
• Excellent Occupational Health Enterprise Award
• Leading Enterprise in Industrial Carbon Emission Peak of China
• Leading Company in Green Development
• Best Risk Assessment Award
• Traffic Safety Award
• Zero Waste Brewery Award
• Water Saving Enterprise Award
• Fire Safety Award
• UNCCD’s Land for Life Award
• International Road Federation “Find a Way” Global Road Safety Award