贵州茅台:贵州茅台2022年度环境、社会及治理（ESG）报告（英文版）

2022 Environmental Social and Governance Report 12022 Environmental Social and Governance Report 01
About the Report
Organization
This Report covers Kweichow Moutai Co. Ltd. and its affiliated organizations. To facilitate presentation "Kweichow Moutai Co.Ltd." is referred to as "Kweichow Moutai" the "Company" "we" and "us" and our controlling shareholder China Kweichow Moutai
Distillery (Group) Co. Ltd. is referred to as "Moutai Group" in this Report.Reporting Period
This Report covers the period from January 1 to December 31 2022 with part of the content falling outside of the period. Given the
production cycle and process requirements of products part of the production data should be calculated based on the production
year (from October 1 to September 30 of the following year).Publication Interval
This Report is an annual report and is the second Environmental Social and Governance Report issued by Kweichow Moutai.Declaration
All financial data herein are derived from the Annual Report 2022 of Kweichow Moutai Co. Ltd. and all other information and data
are derived from relevant statistics of the Company. The functional currency of all monetary amounts involved is Renminbi ("RMB").Certain amounts and percentage figures herein have been rounded and therefore the totals shown in certain tables may not be
the sum of the foregoing figures.Language
This Report is available in both simplified Chinese and English. In case of any discrepancy in understanding the content the
simplified Chinese version shall prevail.Basis of Preparation
This Report is prepared in accordance with the Guidelines of Shanghai Stock Exchange for Self-discipline Supervision of Listed
Companies No. 1 - Standardized Operations and the Guideline for the Preparation of the Report on Performance of Corporate
Social Responsibility with reference to the GRI Sustainability Reporting Standards (GRI Standards) by the Global Sustainability
Standards Board (GSSB) the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises 5.0 (CASS-ESG 5.0)
etc.Access
This Report is published in both print and electronic formats. For more information on Kweichow Moutai's ESG performance or to
download the electronic version of this Report please visit the following websites.Official website of Kweichow Moutai: https://www.moutaichina.com/
Official website of Shanghai Stock Exchange: http://www.sse.com.cn/02 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 03
CONTENTS About the Report 01 Pursue Long-term and Create Long-term
Message from the Chairman 04 01 Sound Operation with Value by Sustaining Ethical Business Conduct 02 the Industry
About Kweichow Moutai 06
Company profile 06 Improve corporate Pursue superior quality 30
Corporate culture 06 governance 16 Driven by intelligence and
Organizational structure 07 Strengthen internal innovation 36
control and compliance 19
Key performance 08 Provide attentive services 44
Adhere to business ethics 23
Annual Awards (Incomplete) 10 Link to the industry
Focus on cultural ecosystem 46
empowerment 25
ESG Management 11
ESG management integration 11
Substantial topics identification 12 Guard the Picturesque
Stakeholder communication 13 03 Landscape for a Create a Better Beautiful Ecosystem 04 Life Together
Strengthen environmental Improve employee well-
management 54 being 70
Outlook 82 Addressing climate Gather the power of
change 56 goodwill 77
GRI Standards Content Index 83 Produce and operate in a Contribute to rural
green manner 59 revitalization 79
Feedback 85 Preserve biodiversity 64 Fulfill responsibilities 8104 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 05
Message
from the
management system we achieved a leap up in our quality development achievements with society. Firmly believing
Chairman management capability. Keeping the philosophy of "building that employees are the most valuable asset we implemented foundation with suppliers" "enhancing tenacity with supply the "four projects" and the "four training programs" to vitalize
chain" and "achieving greatness through our people" we built talents in all sectors. We implemented the "Happy Moutai"
Only after polishing can a piece of jade be finer. a modern industrial chain ecosystem. We implemented the special improvement plan securing the senses of happiness
2022 marked an extraordinary year for Kweichow "five-integration marketing approach" to fully transform our and achievement of our employees. We implemented the
Moutai. Facing complicated circumstances both marketing system. By highlighting cultural empowerment we "one village one program" rural revitalization work plan to
in and outside of China as well as risks and promoted the "going out" of culture and digital transformation. support development of industries with rural characteristics and
challenges we stayed abreast of the times. We We also accelerated the construction of "Smart Moutai" to construction of beautiful countryside. We carried out the project
delved into and acted on the guiding principles solidify our digital base and boost our high quality development. "China Moutai & Backbone of the Nation" for 11 consecutive
of the 20th CPC National Congress. In the call of We preserved the ecosystem to make our business greener. years along with the public welfare activities such as "Moutai
the times to embrace the great rejuvenation of We practiced the concept of "lucid waters and lush mountains Prince - Bright Youth" "Guizhou Daqu - Dews of Love" and
the Chinese nation on all fronts through a Chinese are invaluable assets" and pursued green development with "Jiang of Han - Craftsmanship Heritage" to promote the
path to modernization we made great strides to ecology as the priority by firmly adhering to the "green line" transmission of social value with practical actions. We helped
develop into a world-class enterprise with excellent development path. In response to the "Dual Carbon"strategy people in need and engaged in earthquake relief safeguarding
products outstanding brands leading innovation we implemented the five special projects namely increase people's lives and demonstrating Moutai's brand image and
and modern governance. We also held unswervingly of ecological water utilization improvement of air quality corporate responsibility.to the "Five-Line" high quality development path soil pollution control protection of microorganism and 2023 marks the opening year of full implementation of the spirit
and thusly promote our high quality development ecosystem balance as well as the five special actions of energy of the 20th CPC National Congress and it is a critical year for
and modernization to create a great era. saving carbon reduction and efficiency enhancement green the implementation of the "14th Five-Year Plan". We will create
We optimized our governance to fully promote product design green transformation of industrial chain green a broad picture of the market with high-quality development
quality and efficiency.Adhering to high- technological innovation and green and low-carbon lifestyle. continue to follow the "Five-Line" high quality development
quality development led by high quality Party To address climate change and boost green power coverage we path with Moutai aesthetics as the essence and direction and
building we continued to optimize our corporate upgraded new energy equipment and sewage treatment plants. make every effort to promote the high quality development
governance structure and vigorously promote We built ecological wetlands plant protection forests ecological and modernization of Moutai. That said we will join hands with
the construction of a modern enterprise system. green walls "production-living-ecological" spaces and other investors consumers employees and partners to create a better
We improved investor relations management key projects with high standards to protect biodiversity. The future and usher in a new chapter for Moutai aesthetics.to create sustainable value returns for our community of life among mountains waters forests soil rivers
shareholders. We strengthened internal control and microorganisms was built to create synergies with green
and built up a compliance-driven awareness to industries. We improved the green and low-carbon circular
consolidate the rule of law management system industry chain to modernize the eco-environmental governance
Chairman of Kweichow Moutai Co. Ltd.and enhance our risk prevention capabilities. By system and governance capacity.upholding the philosophy of "Quality is the Soul We committed to fulfilling our social responsibility and
of Life" and the "Five-Craftsmanship" Quality giving back to society.Adhering to the social responsibility
Philosophy and implementing the "365" quality concept of "Big Brands Big Responsibilities" we shared our06 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 07
About Kweichow Moutai Organizational structure
Kweichow Moutai Company Limited
Company profile
Kweichow Moutai Co. Ltd. was incorporated on November 20 1999 by China Kweichow Moutai Distillery (Group) Co Ltd. as the Directly affiliated departments Branch companies and
main sponsor jointly with seven other units. Its current controlling shareholder is Moutai Group. The Company was listed on the and workshops subsidiary companies
Shanghai Stock Exchange in August 2001 with the stock code 600519.Headquartered in Moutai Town along the stunning banks of the Chishui River in northern Guizhou Province the Company is
mainly engaged in the production and sales of Moutai Liquor and Moutai-flavored series liquors. The hero product Kweichow
Moutai Liquor is the originator and indisputable representative of Daqu Jiang-flavor Liquor in China. The brand is an integration
of National Geographical Indication Products Central European geographical indication products organic food and national
intangible cultural heritage. Boasting lingering fragrance it made Chinese Baijiu known by the world.Over the years Kweichow Moutai has committed itself to brewing fine liquors with craftsmanship while pursuing modern
governance and innovation leadership through transformation. The Company has made great efforts to implement the concept of
green development and sustain cultural empowerment for high quality development and modernization. In 2022 the Company
reported a total revenue of RMB 127.554 billion with a net profit attributable to the parent company of RMB 62.716 billion the
Company ranked first in the "Top 50 Global Most Valuable Spirits Brands of Brand Finance" for 7 consecutive years and ranked
3rd in the "Top 100 Most Valuable Chinese Brands" with a brand value of US$108.49 billion making it the most valuable alcoholic
beverage brand in China.Corporate culture （）
Mission Brew a high quality living experience
Vision Build a world-class enterprise and world-beating brand
Core values Great products decent conducts and harmonious community
Corporate
spirit Devote to Moutai to win glory for the motherland
Honoring the principles abiding by the rules
Quality sticking to the craftsmanship cellaring enough
philosophies liquor to age and not selling freshly brewed Kweichow Moutai Organizational Structure
liquor
Moutai Baijiu Customization and Marketing Guizhou Co. Ltd.Kweichow Moutai Group Finance Co. Ltd.Heyixing Branch of Kweichow Moutai Co. Ltd.Moutai International Hotel of Kweichow Moutai Co. Ltd.Kweichow Moutai Baijiu Paris Trading Co. Ltd.Beijing Friendship Messenger Trading Co. Ltd.Kweichow Laymau Co. Ltd.Kweichow Moutai Baijiu Import and Export Co. Ltd.Kweichow Moutai Jiang-flavor (Moutai-flavor) Baijiu Sales Co. Ltd.Kweichow Moutai Baijiu Sales Co. Ltd.Ecology and Environmental Protection Department iMoutai department
Safety Supervision Department Electromechanical Maintenance Support Workshop
Quality Department Production Material Distribution and Support Workshop
Production Management Department Transportation Support Center
Tech Center Life Service Assurance Center
Digital and Information Management Center Power Workshop
Corporate Culture Department & Convergence Packaging Workshop
Media Center Blending and Storage Workshop
Legal Compliance Department Yeast-making Workshop
Accounting Department Liquor-brewing Workshop
Strategic Development Department Audit Department
BOD Office Planning and Construction Department
Discipline Comprehensive Office Centralized Procurement Center
Group Office Material Supply Center
Human Resource and Social Security Department Comprehensive Management and Security Department
Company Office Equipment Energy Management Department08 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 09
Key performance
Total investment in environmental Electricity consumption intensity Water consumption intensity Hazardous waste disposed
protection
381082900 6.68kwh/CNY10000 revenue 0.70ton/CNY 10000 revenue 100%RMB
Environmental Comprehensive energy consumption Natural gas consumption intensity Hazardous waste disposed Solid waste utilization rate
performance 0.01 8.18m3/CNY 10000 revenue 40.32ton 100%
ton standard coal/CNY 10000 revenue
Total employees Customer complaint resolution rate Major production safety accidents Public charity donation amount
31413 100% 0times RMB225431100
Social
performance Staff training ratio Safety production training ratio Major fire accidents Rural vitalization investment
100% 100% 0times RMB63960500
Total assets Total operating revenue Net profit attributable to shareholders Total cash dividends
Economic RMB254.365 billion RMB127.554
of the parent company
billion
RMB62.716 RMB57.370 billionbillion
performance10 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 11
Annual Awards of Kweichow Moutai ESG Management
ESG management integration
China National Food Guizhou Province "Lucid "Corporate of the Year"
Industry Science and Waters and Lush Mountains of the 17th People's
Technology Progress Are Invaluable Assets" Corporate Social Regarding ESG management as a key measure to promote high quality development Kweichow Moutai upholds the concept
Award Practice Innovation Base Responsibility Award of "Big Brands Big Responsibilities" based on responsible operation. We also strike a balance between corporate development
economic growth and sustainable development to enhance our capacity for sustainable development.China National Food Industry Guizhou Provincial Department People's Daily Guided by the philosophy of responsibility we promote ESG efforts in a systematic manner. While the Board of Directors is the
Association (CNFIA) of Ecology and Environment People's Daily Online highest responsible body for ESG matters the management coordinates ESG arrangements and all departments and affiliates
manage and practice ESG issues based on their business attributes incorporating ESG management requirements into the entire
process of company production and operation. We constantly uphold the new major development philosophies of innovation
coordination green openness and sharing and the "Five-Line" high quality development path. Adhering to the motto of "Quality
2022 Top 500 Chinese No.1 in the list of 2022 Top No.1 in the list of Most is the Soul of Life" we build up the two lifelines of ecology and safety serve the national strategy people's demand for a better life
Enterprises 100 Guizhou Enterprises Valuable State-owned and the sustainable development of enterprises creating economic social and environmental values for all stakeholders.Listed Companies in
China
China Enterprise Guizhou Provincial Enterprise "Five-Line" high quality development path
Confederation (CEC) Confederation (GEC)
China Enterprise Directors Guizhou Provincial Enterprise Hurun Research Institute
Association (CEDA) Directors Association (GEDA) Blue line Green line White line Purple line Red line
Vision and Unswervingly Sustain the Fully tap into Lines of
blueprint pursue green return-to-zero the cultural environmental
No.2 in the list of "China No.1 in the list of Top 50 No.1 in the list of China's development mindset with a connotation protection
Brand Value Evaluation Global Most Valuable Spirits 500 Most Valuable Food with ecology focus on reform and empower safety and anti-
Information Release" Brands and Beverage Brands as the priority innovation and development corruption
by establishing construction with culture
"one base and
one benchmark"
China Council for Brand Brand Finance World Brand Lab
Development (CCBD)
No.14 in the List of Most No.3 in the list of Top 100 Memorial Award for 20
Valuable Global Brands Most Valuable Chinese Years of Striding Forward
Brands
Kantar Kantar Guizhou Brewing Industry
Association12 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 13
Substantial topics identification Stakeholder communication
In the light of the Company's development strategy and operational practices as well as the sustainable development trends Kweichow Moutai attaches great importance to the full communication with all the stakeholders such as government and
in and outside China and the features of the Baijiu industry Kweichow Moutai identifies and sorts out the topics that are most regulators shareholders consumers employees and suppliers. The Company listens to and analyzes their concerns and demands
relevant to our business activities and most concerns our stakeholders and makes them the focus of our ESG efforts and social in depth incorporates them into the scope of ESG management and responds to them with practical actions.responsibility communication so as to form ESG management priorities and better respond to the demands of our stakeholders.Key Topics Identification Stakeholders Expectations and Demands Communication and Response
●?Abide by laws and regulation ●?Manage the corporate according to law
Corporate Environmental Social ●?Anti-corruption ●?Risk management
Governance Responsibility Responsibility Government ●?Economic development ●?Achieve green and high quality
and Regulators ●?Pay taxes according to law development
●?
●?Business results ●?Carbon emission management ●?Occupational health and safety ●?Increase employment Pay taxes on time and in full
●?Promote employment
●?Corporate governance ●?Energy management ●?Employee rights and benefits
●?Operation according to law ●?Water resources management ●?Promoting industry ●?Profitable return on investment ●?Actively distribute profits
●?Craftsmanship heritage and ●?Packaging material development Shareholders ●?Preserve and increase the value of assets ●?Reasonable operation
innovation development management ●?Supply chain management ●?Standardize corporate governance ●?Improve disclosure of information
●?Risk identification and ●?Pollution control ●?Product quality and safety
●?Food safety ●?Strengthen food safety management
management
●?Ecological protection ●?Customer service ●?Considerate service ●?Improve after-sales service
●?Brand building and protection Waste management Responsible marketing Consumers●? ●? ●?Product quality ●?Enhance quality management
●?Anti-corruption
●?Moderate drinking ●?Consumer health ●?Advocate moderate drinking
●?Business ethics
●?Community development
●?Protection of rights and interests ●?Improve welfare benefits
●?Public welfare activities Employees ●?Career development ●?Enhance talent training system
●?Physical and mental health ●?Work-life balance
●?Develop reasonable marketing strategy and
●?Strategic support
Distributors incentive policy
●?Win-win collaboration
●?Distributor training
●?Responsible sourcing
●?Fair and impartial procurement ●?Technical support
Suppliers
●?Compliance and trustworthiness ●?Supplier management
●?Supplier training
●?Carry out public welfare charity activities
●?Public welfare
Community ●?Promote community investment
●?Community development
●?Contribute to rural revitalization
●?Environmental compliance ●?Improve environment management system
●?
Environment Achieve the goals "carbon peak" and
●?Develop Moutai into a benchmark
"carbon neutrality" enterprise in the Baijiu industry
●?Ecological governance ●?Promote ecological conservation14 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 15
01 Pursue Long-term and Sound
Operation with Ethical Business
Conduct
Sound governance is the heart of building a modern enterprise system. Kweichow
Moutai fully implements three-year action plan for SOE reform and continuously
improves the governance system the corporate governance structure and the
compliance mechanism by benchmarking with world-class enterprises. With
efforts to constantly enhance the construction of a modern enterprise system the
Company aims to achieve scientific robust and effective corporate governance
allowing sound corporate governance to serve as a cornerstone and powerful driver
for the Company's sustainable development.SDGs
●?Improve corporate governance
●?Strengthen internal control and compliance
●?Adhere to business ethics
●?Focus on cultural empowerment16 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 17
Improve corporate governance
Kweichow Moutai strictly complies with the Company Law of the People's Republic of China the Securities Law of the People's
Republic of China the Code of Corporate Governance for Listed Companies and other laws and regulations and response to ●?Held1annual shareholders' meeting and
the requirements of regulators to constantly improve the corporate governance structure of modern enterprises establish and
improve the incentive mechanism for development. We revised and optimized the Articles of Association and Rules of Procedure approved15proposals
of the Company's Board of Directors to incorporate the overall requirements for the party construction into the company's Articles
of Association further enhance the modern management capability and level of the Company. ●?Held1interim general meeting and approved3proposals
Governance structure ●?The Board of Directors held14meetings and
approved57proposals
Kweichow Moutai establishes a corporate governance structure and operational mechanism with the Shareholders' Meeting
the Board of Directors the Board of Supervisors and managerial level at the core. The Company revises the rules of procedure ●?The special Committee under the Board of Directors
continuously optimize the composition of the Board of Directors strengthens the ability of directors to perform their duties
ensuring that each governance body of the Company performs its duties in a standardized efficient and adequate manner so as to held20meetings and approved36proposals
promote the continuous improvement of corporate governance.●?The Board of Supervisory held5meetings and
Shareholders' Meeting Board of Directors and its Committees
approved12proposals First interim general meeting held in 2022
The Shareholders' Meeting is held in strict accordance The Board of Directors of the Company has 7 directors
with the Articles of A ssociation and the Rules of including 3 independent non-executive directors 1
Procedure for Shareholders' Meetings. Notices of the female director and 1 employee director. The Board of
meeting deliberations and voting at the meeting are Directors comprises five special committees namely
carefully conducted to ensure that shareholders enjoy the Strategy Committee the Audit Committee the Risk Election of directors
equal status and effectively exercise their rights to Management Committee the Nomination Committee
information participation questioning and voting. and the Compensation and Assessment Committee. By the end of 2022
The Audit Committee is fully composed of independent
Board of Supervisors Managerial level directors the Nominating Committee and the Board of Directors
Compensation and A ssessment Committee are
The Board of Supervisors of the Company has a total of 3 The managerial level of the company carries out daily chaired by independent directors and independent
supervisors including 1 employee supervisor. The Board production and operation matters in accordance with the Independence directors make up the majority of the Risk Management 3 Independent board members
of Supervisors shall supervise the financial status and statutory authority and the authorization of the Board of C o m m i tt e e N o m i n a t i n g C o m m i tt e e a n d t h e
operations connected transactions and the performance Directors is responsible for organizing and implementing Compensation and Assessment Committee.of duties by directors and senior management of the the resolutions of the Board of Directors and reports
Company and promote the coordinated operation to the Board of Directors and effectively plays the role 1 expert in accounting
and effectively check and balance of the Company's of business planning implementation supervising and Information on candidates' educational background work
governance bodies. management improving. experience and part-time employment is reviewed at the
director nomination stage and the Nomination Committee
Governance Structure of Kweichow Moutai under the Board of Directors regularly reviews the structure
1 expert in finance
Diversity size and composition of the Board of Directors in terms
of skills knowledge experience and gender each year to
Shareholders' meetings Strategy Committee ensure a diversity of the board members. 1 expert in law
Board of Supervisors Audit Committee
Board of Directors Risk Control Committee Industr y talents and experts with professional
experience in accounting finance and law are employed
Nomination Committee to serve on special committees to enhance the quality
and efficiency of the Board of Directors' performance
General Manager Remuneration and Professionalism and comprehensive governance and to ensure scientific
Assessment Committee decision-making of the Board of Directors.18 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 19
Remuneration management Strengthen internal control and compliance
Kweichow Moutai continues to optimize the remuneration management system. We establish and improve the market- Kweichow Moutai further deepens the corporate reform improves the compliance management system and regulates the
based incentive and restraint mechanism by promoting the full coverage of the managers' tenure policy and contract-based operation behavior according to law. Besides the Company enhances the ability of risk prevention and control to boost stable
management linking managers' remuneration with our operating performance and individual performance and appropriately development with a high level of internal control and compliance management.promoting the market-based talent selecting and appointing.To constantly improve performance management the Company formulates the Performance Appraisal Management Measures
of Managerial Level and the Compensation Appraisal Management Measures of Managerial Level. The Company established a Managing the corporate according to law
scientific employee compensation and performance management mechanism highlighting performance and value creation. We
sign a Letter of Responsibility for Business Performance with the management which includes business performance safety The Company strictly abides management laws and regulations improves the regulation system and builds a high quality legal
environment and business ethics in the performance appraisal of employees to improve both management quality and efficiency. talent team. We have deepened the integration of law and business to better prevent risks and continuously improve our level of
governance in accordance with the law offering solid legal guarantee for the Company's reform and innovation.The quasi-annual salar y system is
implemented for middle management
and the corresponding salary level is
determined based on the nature of their
work responsibilities and benefits risks Improve governance mechanism Reinforce legal audit
performance and other factors.Actively promote the establishment of corporate Give full play to the legal audit role of legal staff to
systems establish and improve the "Moutai standards" ensure standardized audit achieve full life-cycle
and require participation of legal staff in the review of management of contracts and achieve a 100% legal
The remuneration of independent directors General employees implement the corporate systems and express opinions on the legal audit rate for major decisions and contracts
is implemented in accordance with the performance related salary system compliance of systems
standards determined by the shareholders' adopt the total wage contracting system
meeting and the Board of Directors and other methods according to the
decides on remuneration matters rewards management needs and refer to the labor
and punishments for senior management market salary level and combine the
and delivers the remuneration of senior technical and knowledge requirement
management in accordance with the labor intensity performance and other Promote law and business integration Enhance the awareness of the rule of law
results of the annual business performance elements to determine the salary.appraisal. Promote the implementation of major special reform Cultivate the philosophy of the rule of law through
projects covering data compliance antitrust review online learning law publicity and by building
Disclosure of information intellectual property marketing system and other key "iMoutai" a law-publicity platform for employees and areas multiple other channels to effectively enhance the
awareness of rule of law among all employees
Kweichow Moutai earnestly implemented the relevant laws and regulations on disclosure of information of listed companies and
the Administrative Measures for the Disclosure of Information of Companies. We constantly improve the transparency in disclosure
of information by disclosing the Company's information in a proactive and standardized manner so as to make true accurate
complete timely and fair disclosure in practice and fully demonstrate the Company's high-quality development to the market.In 2022 the Company continued to expand the channels for disclosure of information held its first annual results presentation
by live streaming across the network maintained effective communication with regulators and organized special research for
investors to actively collect external opinions and suggestions.In 2022
Disclosed4periodic reports Disclosed35interim announcements
Received over2000investor phone calls Handled over3600investor emails20 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 21
Internal control and compliance Risk management
The Company strives to promote internal control and compliance in a systematic and institutionalized manner. Adhering to the The Company endeavors to build a comprehensive risk management system by improving the risk management mechanism
integrity and compliance-driven internal management philosophy we make the best of the synergy between internal control and structure and process to lay a solid foundation for risk prevention and control.compliance management to secure the sustainable and healthy development of the Company. During the Reporting Period we
conducted 3 outgoing audits 1 in-appointment audit and 3 special audits for the key aspects of internal control such as sales and
finance 618 audit projects including economic audits and special audits and realize full internal audit coverage every third year.The Company has established the "three lines of defense" organization system
for comprehensive risk management which is under the leadership of the Board
of Directors. The General Manager and business departments are the primary
Improve the audit system responsible person for risk management. The Risk Management Committee and Risk
Formulate and release the Internal Audit Management Bureau coordinate and lead the construction of the risk management
Management Measures and Internal Risk management
structure system and organize risk assessment. The Audit Committee Board of Supervisors Extend the depth of audit Control Management Manual and revise Audit Department and Disciplinary Inspection Committee supervise the operation of
Extend the scope of internal the Rules of Procedure of the Audit
Committee Enhance the supervision
the risk management system.audit to the supply chain by
monitoring and inspecting the function of audit
implementation of supplier Enhance the role of audit in the
access and control improve entire process of major projects In accordance with the Comprehensive Risk Management Measures and
risk management prevention including ex ante participation Comprehensive Risk Management Implementation Rules we driven by robust risk
and control and early warning interim control and ex post management identify and prevent risks in important production and operation areas
m e c h a n i s m s o f r e l e v a n t supervision. Through initiatives implement all-round risk monitoring and ensure that the risk control management Risk management
departments in the supply such as pre-review full tracking system runs effectively. mechanism
chain and strengthen the role o n - s i t e i n v e s t i g a t i o n a n d
of internal audit in promoting enhanced re-examination we
healthy enterprise development make major project investments
standardized and rationalized We fully sort out the Company's risks apply classified and graded risk management
and clarify risk management objects based on the identification of annual major
risks. In particular ESG risks such as environmental protection safety management
Risk identification integrity management and public opinion have been included in the risk database. By
establishing targeted management mechanisms and clarifying supervisory functions
and assessment we further improve our response strategies.Follow up on audit Carry out solid internal
rectification audits
Follow up on the issues revealed Promote economic responsibility
by the audit keep track of the audits special audits budget Develop risk response plans based on risk assessment results clarify risk response
progress of rectification on a audits settlement audits and objectives and standardize business management processes; make arrangements
regular basis and implement the other audits in an orderly manner for resource allocation division of functions progress tracking and supervision and
responsibility of rectification. As a Enhance the awareness of and fully exploit the role of assessment; and enhance risk control capabilities through special risk prevention
Risk control
result we gradually form a long- internal audit in the supervision campaigns. measures
term mechanism for rectification compliance management pre vention and e valuat ion
to improve the system reveal The Company actively participates of business ethics operation
and prevent risks beforehand in special training on compliance and management economic
ensuring effective application of managementOrganizes employees efficiency and other key areas Comprehensive risk management requires the participation of all staff. Kweichow
audit results to participate online special class Moutai has continuously strengthened the awareness and ability of risk management
on"Compliance Management Measures of all staff through special training online courses etc. and set April and November
for Central Enterprises" and special study
Risk management 2022 as the "Risk Management Awareness Enhancement Month" offering specialized on compliance hold by State-owned
training risk management training courses for "risk management enthusiasts" and "risk Assets Supervision and Administration management practitioners".Commission of the State Council to
enhance employees'sense of compliance22 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 23
Adhere to business ethics
General Manager Risk Management Audit Committee Committee Upholding the philosophy of operating with integrity Kweichow Moutai strictly complies with the laws and regulations such as
the Anti-Monopoly Law the Anti-Unfair Competition Law the Supervision Law and the Anti-Money Laundering Law and observes
the code of business conduct. We engage in market competition in compliance with the law and oppose any form of commercial
Risk Management bribery money laundering monopoly and unfair competition.Committee OfficeBusiness Units Audit Discipline （Legal Compliance Department OfficeDepartment） Integrity management
Kweichow Moutai continues to advance efforts to promote integrity management and develop integrity culture. We also
improve the management structure institutional norms and strengthen the awareness of business ethic integrity to see integrity
First line of Second line of Third line of management through.defense defense defense
Comprehensive risk management "Three Line of Defense" Management structure Regulation Awareness of integrity
The Risk Management Committee T h e M e a s u r e s f o r H a n d l i n g Actively carried out anti-corruption
is the unit responsible for business Employees' Violations of Discipline activities to cultivate a culture
Rights protection in the market ethics and integrity management a n d r e l a t e d r e g u l a t i o n s a r e of integrity. The Discipl inar y
and the Discipline Inspection formulated to strictly regulate Inspection Committee takes the
Kweichow Moutai continues to improve the market rights protection mechanism by formulating the Market Rights Protection and Committee is the supervision and
employees' behavior. Meanwhile lead in providing integrity training
super vision and management
Reward Measures. With the establishment of the Moutai Rights Protection Data Center we leverage the advantages of collecting management department and all and education to employees
m e a s u r e s a r e a d o p t e d f o r
leads to work with market regulators to deepen the analysis and research of as well as crack down on counterfeit infringement. By functional departments perform a t a l l l e v e l s . C a r r y i n g o u t
suppliers and distributors with
doing so we protect the rights and interests of our consumers and ourselves in accordance with the law as well as jointly create strict implementation of ethical regular warning education with
issues the same intensity and "zero and maintain a sound market order and business ecosystem. Moutai Integrity Education Hall
tolerance" is maintained in dealing "Qingfeng" Lecture Group and
with corruption Warning Education Conference
a s c a r r i e r s co v e r i n g 1 8 1 5 0
Intellectual property protection employees and strengthening
the ideological defense line of
employees' integrity
Kweichow Moutai strictly abides by the
Patent Law and other relevant laws In 2022 By the end of 2022
and regulations to keep improving its
intellectual property management. In
2022 the Company formulated and Number of new patents Cumulative number of valid
released the Copyright Management patents held
Measures revised the Trademark 38Pieces
Management Measures and Patent 235Pieces
Management Measures to support
a process-based and standardized Number of patents filed Cumulative number of
intellectual property management
system. In addition the Company 70 copyrights heldPieces
promoted high quality intellectual
property protection through multiple 63Pieces
measures such as launching the Number of invention patents filed
Intellectual Property Collaborative
Innovation Management System and 38Pieces
the "Flying" trademark exploration
project.Kweichow Moutai Integrity Education Hall24 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 25
Carry out integrity education to strengthen the awareness of integrity in performing
Case
responsibilities
On April 13 2022 Kweichow Moutai organized a special warning education conference as a sponsor. During the conference
managers at various levels and staff representatives watched an educational film on integrity. By analyzing typical cases of
disciplinary and legal violations the Company enabled employees to profoundly understand the severity of disciplinary violations
and raise their awareness of integrity and self-discipline.Case Carry out anti-money laundering publicity activities
In 2022 Kweichow Moutai organized employees to participate in publicity activities such as "anti-fraud anti-money laundering
anti-organized crime" personal finance and credit investigation so as to improve their anti-money laundering awareness and
prevent financial risks.Whistleblower protection
The Company strictly follows and implements Reporting channels
the Work Rules for Discipline and Supervision
Organs Investigation and Handling of Reports and
Accusations and the Announcement of Telephone Focus on cultural
Number and Website of Discipline and Supervision Reporting telephone：0851-22385896
Organs (Institutions) for Petitioning. We regulate Reporting URL：http://guizhou.12388.gov.cn empowerment
the process and smooth the channels of reports Reporting mailbox：6/F Near Elevator Entrance Office
handling and ask designated personnel to handle Building of Kweichow Moutai Co. Ltd.reports to ensure that the role of supervision and
reporting is given effective play. With a focus on "Beautiful Times and Beautiful Life" we dig deeper into the connotation of liquor culture and promote the
construction of Moutai culture through activities revolving around people culture objects arts rituals festivals harmony history
Reports handling process and artifacts. In this way we push forward the creative transformation and innovative development of excellent traditional culture
and bring the charm of Moutai culture into full bloom.Petitioning department Supervision and inspection Review and investigation Case supervision and
Receives and registers reports department department management department
Reviews initially and submits Disposals for and replies to Supervises manages and
for approval reports reports complaints on a
regular basis
The Company strictly implements the confidentiality requirements secures legal protection for whistleblowers and controls
the access scope of reporting and problem clues. We follow the principles of confidentiality and avoidance strictly prohibit the
disclosure of problem clues and handling methods and no one can access problem clues without approval.Anti-unfair competition
The Company attaches great importance to fair competition and complies strictly with the Anti-Unfair Competition Compliance Guidelines
Anti-Monopoly Compliance Guidelines and other systems. We establish and improve the list of relevant compliance risks and obligations to
strengthen the awareness of fair competition among all employees constantly strengthen management related to anti-monopoly and anti-unfair 2022 Kweichow Moutai Dragon Boat Festival Ceremony
competition and promptly deal with possible unfair competition and monopoly in market transactions developing a fair market environment.26 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 27
Inspire cultural vitality Facilitate the "going out" of culture
Nurtured by the excellent traditional Chinese culture Chinese liquor culture harbors rich Chinese philosophical wisdom. Kweichow Kweichow Moutai vastly expands its global presence in market share continues to broaden its international vision and adheres to
Moutai deeply pays close attention to the connotation of traditional culture in the new era and explores the production cycle of a culture-driven approach. In 2022 through a series of overseas cultural promotion activities such as cultural exchanges tastes and
Moutai liquor and the seasonal laws of the 24 solar terms. We keep in tune with the times and follow the beauty of "co-brewing thematic exhibitions the Company proactively spread the excellent Chinese traditional culture and showcased the new image of
with the season" and endow innovative charm in the inheritance of ingenuity. We carried out a series of activities featuring Moutai Chinese enterprises. The Company strived to promote the deep integration of Moutai culture and international culture and build a
characteristics such as Vernal Equinox Forum Grain Rain Lecture Forum and Summer Solstice Strategy Seminar. We revamp and world-class brand with culture as a carrier.upgrade our corporate culture concept improve cultural heritage protection and analyze and enrich Moutai culture in all aspects.We build the Moutai Culture Experience Gallery and make it a cultural window for us to improve interaction with our customers.We diversify our cultural activities and promote participation in multiple ways for an organic integration of cultural heritage and
corporate development. Case Spread Chinese culture and facilitate open cooperation: Moutai's APEC trip
In November of 2022 Kweichow Moutai attended the APEC CEO Summit 2022 and participated in the forum discussions. In
addition the Company engaged in holding a series of cultural economic trade and charity events such as "China Moutai Thailand
Case Moutai Culture Experience Gallery Tasting - A Hint of Baijiu Aroma in the APEC" and "APEC CEO Summit 2022 - CEO Closed-door Luncheon". These efforts aimed
at leaving our footprint in the APEC connecting with the world and spreading Chinese culture and positive energy of Chinese
enterprises.Moutai Culture Experience Gallery represents a brand new terminal model for providing consumers with cultural exchange and
interaction opportunities with Moutai. Delivering a variety of functions such as Moutai culture publicity experience visits collection
guidance identification and appraisal it is a paragon of Moutai Liquor market cultivation cultural dissemination and interactive
experience.Kweichow Moutai in the APEC CEO Summit
Case The scent of Moutai brings us together to see the beauty: 2022Moutai Fan Carnival
On December 31 2022 the "Moutai Fan" Carnival and the 3rd
Global Moutai Fan Festival was held in Sanya where "Moutai
fans" from all over the world gathered to learn about the long
history of Moutai culture. The global Moutai Fan Festivals show
a more open attitude and bring Moutai culture to international
audiences which further enhance overseas consumers'
awareness and emotional bonding with Moutaideepen
their understanding of Chinese liquor culture and boost the
internationalization of the Company's brand
2022 Global Moutai Fan Carnival
First Moutai Culture Experience Gallery technology exhibition hall in Hubei28 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 29
02 Create Long-term Value by
Sustaining the Industry
Adhering to the mission of "Brew a high quality living
experience" Kweichow Moutai practices the corporate spirit
of "Devote to Moutai to win glory for the motherland" and
adheres to "Quality is the Soul of Life". We inherit and adhere
to Moutai Liquor traditional brewing process respect and
obey to "five craftsmanship" quality concept and strive
to build foundation with traditional inheritance and seek
breakthroughs with modern innovation. Kweichow Moutai is
committed to providing customers with quality products and
services and joining hands with the whole industry chain to
advance modernization.SDGs
●?Pursue superior quality
●?Driven by intelligence and innovation
●?Provide attentive services
●?Link to the industry ecosystem30 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 31
Quality management system construction
The Company builds a comprehensive Quality supervision structure
"365" quality management system to
reinforce quality management functions Established The Quality Leadership Group and Quality Committee and
improves the quality management set up quality specialists and quality supervisors and a "stationing
system and promotes standardized system" is implemented for branch quality chief officers and quality
scientific and professional quality specialists of key segments
management laying a solid foundation
for high quality development.Pursue superior quality "365" quality Quality management standards
management system Maintain the operation of the quality management maturity evaluation
Regarding product quality as its foundation Kweichow system and improve the quality operation evaluation index system
Moutai implements the principle of "Quality is the Soul "3" objectives of the industrial chain formulate and publish the Annual Quality
of Life" strictly abides "five craftsmanship" quality Objectives Management Regulations the High-quality Development Achieve the goals of a better
concept implements "365" quality management Performance Assessment Management Regulations and other systems.quality management system
system strengthens the construction of quality culture balanced region-wide quality
and brews the first-class product with quality of development and a leap in the
ultimate excellence. overall quality level 3 Quality supervision and assessment
A quality supervision and assessment system comprising of daily
inspection by quality specialists process quality assessment product
Brewing with craftsmanship "6" tasks quality supervision and sampling quality system audit and type
Endeavor to perform the tasks inspection supplemented by unannounced inspection and special
Kweichow Moutai strictly abides the Product Quality Law of the People's Republic of China and practices the quality philosophy of quality management by all investigation of quality events is fully implemented.of "five craftsmanship". The Company strives to sustain quality management and improve the level of refinement and lean employees quality synergy
management. in the whole region quality
control throughout the life cycle
Refine the technique of all-round quality supervision Quality management system certification
quality craftsmanship throughout the whole process
by all employees construction The Company was certified by ISO 9001:2015 Quality Management
Execute full control over the entire
of co-ordinated quality and System and Hazard Analysis Critical Control Point (HACCP) System
processes scenarios and employees
e c o l o g i c a l d e v e l o p m e n t
Solidify the essence of Sharpen the tools of community and modernization
quality craftsmanship quality craftsmanship of quality governance capacity
Implement the philosophy of "quality E n h a n c e m o d e r n i z e d q u a l i t y 6
is the soul of life" management with the support
from standards and techniques of
Quality production quality management "5" guarantees
philosophy
P ro v i d e t h e g u a ra n te e s o f
Stay true to the quality of "five Cultivate quality organizational leadership talent
craftsmanship craftsmanship" craftsmen support f inancial support Kweichow
supervision and assessment Moutai's Quality
Stick to the original principle of "Reach Strive to build first-class craftsman Management and public opinion propaganda System and
for higher ground with quality as the teams research teams and cultivate 5 HACCP System
priority" management elites certifications32 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 33
Whole process management of quality
Kweichow Moutai attaches importance to Whole process management of quality Emphasize sorghum seed quality management throughout the whole quality and jointly explore
product life cycle. We invest heavily to improve
the technical process and equipment Case the development path of
optimize standard operating procedures and Front-load inspection for a strict procurement process:For brewing raw material seed
establish a whole-chain quality control system raw and auxiliary materials the "1+N" three-level inspection mode is fully
to implement all quality requirements into implemented with batch sampling inspection before procurement check before
industry
the grassroots business process. Meanwhile acceptance upon warehousing and confirmation before use to establish a solid
we set up a quality management information foundation for the quality of base liquor. On December 23 2022 Kweichow Moutai
platform to enable information traceability participated in the first "Red Tassel Forum"
throughout the whole process of raw material
Precise process and accurate control: with more than 60 agricultural experts and procurement production and brewing Implement 100% full coverage representatives of liquor companies to share
packaging and sales and after-sales service sampling inspection for Moutai series of Daqu production teams evaluate and ideas on the development of the brewing raw
so as to improve the quality management grade all round of Moutai base liquor material seed industry. Only with good seed can
level of the whole industry chain and provide grow good grain and only with good grain can
customers with products of superior and brew good liquor. Kweichow Moutai strengthens
assured quality. Crafted products with high quality and stable production: quality management from the source focuses
Targeting the entire Baijiu industry chain Exercise strict control over product quality improve flavor quality optimize on mature products layout scientific price
we build and improve the quality and safety inspection techniques and improve inspection capabilities. Newly developed mechanism standardized products logistics
risk management system for Baijiu and over 10 near-infrared rapid detection methods for key nodes in yeast and liquor and beneficial industrial ecology and strives to
implement graded control over food safety making maintaining 100% batch inspection coverage rate sampling pass rate of develop a complete market system making new
risks. In addition we build a database of packaged finished products and pass rate of outgoing products contributions to the revitalization of Guizhou seed
alcoholic beverage regulations covering 53 industry and high-quality development of Jiang-
countries and regions enabling the monitoring flavor liquor industry.of 1123 indicators for 49 categories of materials Dedicated to providing reliable services:Enable information
in the whole industry chain effectively Chairman Ding inspects on "Red tassel" sorghum
improving the product quality and food safety traceability throughout the entire process from product delivery warehousing
management level. logistics and distribution to end consumers responding to customer needs
immediately and effectively promoting product quality improvement
Quality culture construction
The Company builds up the quality culture
by designing and implementing three- Recognition of "Moutai Craftsmen" who make Case
dimensional quality culture dissemination great contributions
activities between the Company on one Build the foundation of safety
side and employees local communities On September 23 2022 Kweichow Moutai held the first "Moutai Craftsman's Day"
and consumers on the other with a view Regarding safety as an anchor Kweichow Moutai continues to strengthen safety kick-off meeting to award the "Outstanding Master and Apprentice" "Outstanding
to promoting the construction of quality responsibilities enhance safety awareness and improve safety management Shift (Team) Leader" "Gold Medal Staff" "Moutai Model Worker" and the first
culture. In 2022 the Company held the capabilities with a view to building a sound line of defense for safety and creating a prize winner of the provincial skills competition for the year. At the meeting an
"Moutai Craftsman's Day" kick-off meeting safe stable and healthy production environment.appointment ceremony for a series of Moutai Liquor brewing technicians was held
and the "All-round Craftsman" labor to further create an environment honoring craftsmen labor knowledge technology
competition to consolidate the foundation and innovation and to encourage employees to concentrate on brewing improve
of quality culture; played an active part in Production safety assurancetheir skills and pass on their know-how to build a team of knowledgeable skilled and
the "Quality Month" exchange activity on innovative craftsmen. The Company implemented the 2022 Safety Production Work Essentials and took
quality management in Guizhou Province; safety production objectives as the guide to further implement safety responsibilities
participated in the 6th Skills Competition refine safety systems establish and improve safety risk control mechanisms
for Professionals in the Liquor Industry in escorting high quality sustainable development of the Company.Guizhou Province to show the results of
quality management and to boost quality
culture exchanges.34 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 35
Mechanism construction "Vibrant Work-break Happy Moutai": Work-break
In 2022 Case exercise promotion
Formulate and publish the Management Measures for Handling Typical Violations of
Safety Production and Fire Fighting and the Safety Production Reporting Management Amount of safety production
Measures the chief leaders to sign the Letter of Responsibility for Safety Production In 2022 to prevent employees from occupational physical strain injuries and reduce investment
and Fire Fighting Targets. the risk of occupational diseases Kweichow Moutai joined hands with orthopedic
154 experts from the Peking University Third Hospital to create work-break exercises Specialized governance RMB million tailored to each type of employees. The exercises took into account the actual working conditions of Moutai including liquor-making yeast-making packaging and
Promote the special rectification tasks such as the "three-year action" "consolidation and Number of safety production training logistics. At the opening ceremony of the sports meeting the Company organized
improvement" and "cracking down on non-compliances and violations" and carry out nearly 2000 employees to perform the collective work-break exercises and issued an
specialized actions to enhance production safety and further make up for the shortcomings. 2723 official document to promote the exercises. We encouraged employees to practice times the exercises between work sessions to create a favorable environment of "healthy
life happy work".Risk control
Safety production training coverage
Carry out annual safety risk identification and evaluation safety risk assessment in
key areas of the plant systematically and establish the "semi-monthly dispatch" and 100%
"monthly verification" mechanism for hidden hazard management to improve the Kweichow Moutai's OHS
level of risk control and hidden hazard management. Management System certification
Number of emergency drills
Emergency management 311times
Continue to push forward the preparation and revision of emergency plans increase
investment in fire safety and emergency supplies strictly implement 24-hour emergency Number of participants in
duty and carry out various types of safety emergency drills such as firefighting limited emergency drills
space operations dust explosion and smoldering combustion of distiller's yeast to
improve the firefighting rescue and emergency response capabilities of employees. 17614people
Work-break exercises
Major fire accidents
0times
Case "Moutai Prince Cup" Safety Production Knowledge Contest
Major production safety accidents
Kweichow Moutai took part in 2022 "Moutai Prince Cup" Safety Production Knowledge Contest which covered 12 aspects such as
Practical emergency drill for Baijiu rescue and comprehensive emergency response 0times occupational health production safety and fire safety. The knowledge contest covered a wide range of areas and spanned a long
period of time. It aimed at strengthening the awareness of all employees on safe production and occupational health improving
their theoretical safety knowledge and skill level firmly establishing the concept of safe development and promoting safe
Occupational health and safety production activities.We make every effort to guard the occupational health and safety of our employees uphold the policy of "safety first prevention foremost and
comprehensive management" and continuously improve the occupational health and safety management system. We formulate and implement
internal systems such as the Occupational Health Management System the Occupational Disease Hazard Prevention and Control Responsibility
System and the Safety Management Regulations for Special Operators. During the Reporting Period the Company has passed ISO 45001:2018
Occupational Health and Safety Management System Certification. In 2022
In 2022 Kweichow Moutai arranged for an assessment of the status quo of occupational disease hazards and conducted on-site research and
OHS reviews of liquor-making and daqu-making workshops and units to facilitate the prevention and control of occupational disease hazards and Work-related death: Work-related death rate Work-related serious injury rate Work-related injury rate
promote source management.We attach great importance to and actively implement safety training for employees. For this reason we formulate the Safety Production Education 0 0% 0% 0.03%
and Training Management Regulations to regulate safety production education and training management. Meanwhile we enhance employees'
awareness of safety and improved safety operation skills by conducting safety knowledge contests and issuing the Safety Culture Handbook.36 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 37
Improve management
We continue to improve innovation mechanisms and formulate
systems such as the Comprehensive Budget Management In 2022
Measures the Regulations on the Management of R&D Input
Statistics and the Regulations on the Management of Scientific
Research Funds to regulate the use of R&D resources and improve R&D investment in science and technology
the energy efficiency of R&D management. In 2022 we deepened
system reform further clarified institutional positioning and RMB559 million
management functions and optimized R&D project management
processes providing a solid organizational backstop for the
Company's innovation and development.Science and Technology Innovation Platform construction
We value the construction of scientific and technological innovation platforms. Through forming alliances with scientific research institutions
universities and other professional institutions and giving full play to our advantageous resources we make every effort to promote the
construction and operation of five innovation platforms including "two laboratories two centers and one station" with the aim of creating a
highland of technological innovation and achieving a new leap in the construction of traditional brewing science and innovation platform.Driven by Staying true to the development philosophy of "technology is the first Key Laboratory of Industrial Microbial Key Laboratory of Specialty Sorghum Guizhou Brewing Engineering productive force and innovation is the first driving force" Kweichow Moutai Resources Development:Conduct Innovation (proposed):Focus on the Technology Research Center:Sustain
inherits and innovates beauty with science and technology and continues
intelligence and research in the areas of resource mining basic theories and key technologies in research on process detection technology to enhance innovation leadership with technology. The Company leverages functional development engineering the innovation of specialty sorghum control technology mechanical and digital
the opportunity of digital transformation to explore the operation model
innovation bacteria construction and industrial germplasm upgrading around the brewing processof "Smart Moutai" and build up new momentum for its transformation and applicationupgrading.Innovate to create beauty Construction of the innovation platform featuring
Kweichow Moutai proactively deepens enterprise reform carries out management improvement actions aim to become world- "two laboratories two centers and one station"
class enterprises and establishes a sound market-based operating mechanism and management target system. We pursue high
quality and dynamic development by giving priorities to industrial structure optimization improvement of the technological
innovation capacity and continuously deepen reform of the marketing system so as to comprehensively improve the company's
modern management ability.Guizhou Baijiu Manufacturing Innovation Chishui River Maotai Ecosystem Field Scientific
Guided by the idea of "laying out the innovation chain around the whole industry chain and empowering the industry chain with Center:Conduct research on intelligent manufacturing Observation and Research Station: Perform monitoring
the innovation chain" we lay out the innovation chain around raw material cultivation brewing process and product quality. and green low-carbon and circular development of the and evaluation of ecological factors such as water soil air
Besides we promote theoretical research technology R&D and demonstration application and deep integration between the whole industry chain of Baijiu and microorganisms in the brewing region with a focus
innovation chain and the industry chain to develop a new industrial ecosystem with technology. on environmental and ecological research
Deep industry-university-research integration
Research on raw Five major core 5-dimensional Kweichow Moutai integrates external R&D resources for deepening cooperation with universities and research institutions such as Institute
material cultivation technology systems quality expression of Microbiology of the Chinese Academy of Sciences (IMCAS) Chinese Research Academy of Environmental Sciences (CRAES) Tsinghua
University and Jiangnan University. By doing so we aim to promote the transformation of innovation achievements complement
Good seed effective method Basic research system brewing process Production area process base liquor advantages and seek mutual benefits win-win outcomes and common progress. In 2022 leveraging the industry-university-research
fa v o ra b l e s o i l a n d h ea l t h y technology system liquor body design diversity sensory features and typical cooperation platform we successfully declared the national key R&D program "Green Small Watershed Construction Technology System
ecology system quality evaluation system and style and comfortableness after drinking and Application Demonstration" and the provincial science and technology support program "Research Development and Application of
food safety control system Online Monitoring System for Daqu Fermentation Process" further enhancing our comprehensive technical strength.38 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 39
Transformation of scientific and technological achievements
Scientific and Technological Innovation
We adhere to the market-oriented R&D path. By strengthening basic research applied research and transforming achievements
we have created a series of scientific and technological achievements in terms of the brewing process brewing equipment digital Achievement Awards of Kweichow Moutai in 2022
technology and green technology enabling the linkage of innovation industry and value.Research on ecological environment monitoring and load-bearing assessment
of production area:We systematically carry out environmental microbial basic Key technology and industrial application of Quality analysis research and application of
data monitoring of the Maotai section of the Chishui River basin and the core precise control on brewing process of Jiang- Northern Guizhou high-quality brewing sorghum
production area of Kweichow Moutai providing significant data support for the flavor Liquor based on modern food histology technology
enactment of the Regulations on Environmental Protection of Jiang-flavor Baijiu
Production in Chishui River Basin of Guizhou Province
First Prize of Science and Technology Progress First Prize of Technology China National Food
Results in basic China National Light Industry Council (CNLIC) Industry Association (CNFIA)Breeding research with genetic accumulation and aggregation technology:
research areas We strongly promote brewing raw materials and breeding research adopt precise
gradually materialize and efficient genetic accumulation and aggregation technology featuring high-
quality disease-resistant and high-yielding traits to breed and validate three new-
generation baking wheat varieties applicable to the middle and lower reaches of Research on risk screening and migration Key technology R&D and industrial application
Yangtze River and have planted in Moutai liquor wheat base patterns of key processing aids for Baijiu and of liquor lees organic fertilizer production
its polymeric storage materials
The First Innovation Award State-owned Assets
Second Prize of Technology CNFIA Supervision and Administration Commission of
Guizhou Province
Key equipment Construction and application of the technical
Bioinformatics-based flavor control research
R&D achieves system of flavor substance analysis for oral Automatic conveying system for and industrial application of Jiang-flavor Liquor
Hull steaming equipment
yeast-making and material mixing milestones perception of Jiang-flavor Liquor
Significant Scientific and Technological Significant Scientific and Technological
Achievements of Chinese Baijiu in 2022 China Achievements of Chinese Baijiu in 2022 China
Alcoholic Drinks Association (CADA) Alcoholic Drinks Association (CADA)
In 2022
116 Carried out Carried outCarried out scientific
research projects in seven areas such 1national level project 3ministerial level projects
as raw materials microorganisms
and brewing environment
Published including
29academic articles 12 indexed in the SCI40 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 41
Create "attractive" products
Sci-tech innovation talent cultivation Kweichow Moutai constantly optimizes the structure of its product chain increases R&D efforts on new products enriches product
flavors and packaging design and broadens product categories on the basis of its products boosting product attractiveness with
We regard scientific and technological talents as innovation. In 2022 Kweichow Moutai unveiled a variety of cultural Moutai Liquor offerings such as Kweichow Moutai Renyin Year
valuable resources observe management plans such of the Tiger and Moutai 1935. We also pioneered the non alcohol beverage product Moutai Ice Cream to serve the diversified
as the Implementation Plan on Building the Highland needs of consumers in different age groups and different scenarios.of Scientific and Technological Innovation Talents
the Implementation Plan for the Outstanding Youth
Program the Management Measures for the Selection
of Outstanding Talents Award and the Management
Regulations for the Re-employment of Technically Renyin Year of the Tiger Zodiac Baijiu
Skilled Personnel. We keep perfecting the innovative
talent platform and systematically promote the
introduction and cultivation of sci-tech innovation Renyin Year of the Tiger Zodiac Baijiu is the 9th offering in Kweichow Moutai's Zodiac
talents to build a talent highland. Baijiu series. It is blended with 200 different base liquors of different ages over a five-
year period bringing together the Chinese zodiac the Five Elements ink painting and
the art of calligraphy to provide an all-round immersive cultural experience for tasters.
2022 Moutai Group Scientific
Case and Technological Innovation
and Talent Work Conference
On March 20 2022 Kweichow Moutai supported the
organization of and participated in the "Moutai Group Moutai 1935
Scientific and Technological Innovation and Talent
Work Conference" during the "vernal equinox". At the
conference the five core systems of Moutai Liquor Moutai 1935 is produced in the core production area of the Chishui River Basin (Heyixing
brewing were released and a ladder training plan production area) and Kweichow Moutai Geographical Indication Reserve. It is blended
for innovative talents was formulated. In addition with the base liquors of the two production areas with the cultural kernel of "happy
we held the recognition ceremonies for "2022 reunions" creating a "happy culture" themed drinking scenario and revealing the
Moutai Outstanding Talent" and "2022 Scientific and cultural profundity and superior quality of Moutai.Technological Innovation Achievements" awards
which motivate employees to be pioneering pragmatic
and innovative and provide new momentum for the
company's high-quality development.Moutai Ice Cream
Jointly launched by Kweichow Moutai and Mengniu Moutai Ice Cream marks an R&D
breakthrough targeting at young consumers. The high-quality raw materials scientific
formulas and advanced technologies involved all stem from Kweichow Moutai's
dedication to innovation.42 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 43
Smart Moutai Case Share a quality life at "iMoutai"
Digital technologies have become a new engine for enterprise transformation and upgrading. Kweichow Moutai makes full efforts to On May 19 2022 the "iMoutai" digital
promote the construction of "Smart Moutai" deeply implements the intelligent transformation strategy and promotes the deep integration marketing platform was officially launched.of information technology and liquor manufacturing industry with a view to inspiring innovation momentum and creating value. As a one-stop service platform dedicated
to providing consumers with open
convenient and reassuring services in
Accelerate digital transformation and build "Smart Moutai" response to the consumption trend in the
digital economy era "iMoutai" represents a
In accordance with the Opinions on Accelerating the Construction of "Smart Moutai" Kweichow Moutai continues to improve its breakthrough of Kweichow Moutai's digital
management system and organizational structure and sets up a digital and information management center to coordinate the investment construction manifesting the constant
and allocation of resources and boost the development of "Smart Moutai". practice of its quality philosophy of
Upholding the principle of "making targeted breakthroughs with demand orientation" the Company starts with smart marketing to "brewing a high-quality living". Kweichow
accelerate the layout of supply chain operational control and smart parks. By enabling digital business processes and building a sound Moutai uses "iMoutai" as a medium to
digital business synergy management system the Company creates new momentum and new advantages for its high-quality development. bring Moutai Liquor into thousands of
households allowing consumers to
experience the true beauty of Moutai and
Smart marketing Smart supply chain life. By the end of 2022 "iMoutai" has
registered users over 30 million. "iMoutai beauty life" Gallery
Based on iMoutai our digital marketing platform We complete the construction of the centralized
we build a full-chain marketing management model procurement platform launch and run the
comprising Moutai Mall marketing service system material supply management platform packaging
upgrading warehousing and logistics management production plan management system and
system distribution traceability system and financial warehousing and logistics system and realize Maintain network and information security to escort digital transformation
settlement platform and comprehensively promote digital and transparent management of the whole Kweichow Moutai abides by laws and
capabilities of product operation brand operation procurement process. Network and information management initiativesregulations such as the Cybersecurity
market operation user operation and data operation. Law of the People's Republic of China
and Data Security Law of the People's
Republic of China and formulates the Network security
Network and Information Security ●?Carry out regular network security emergency drills hidden dangers investigation
Smart legal affairs Smart parks Management Measures Terminal Security and rectification
Management Regulations and Information
To provide support for smart legal affairs we launch We complete the construction of the integration Disaster Recovery System to optimize the ●?Push network security-related systems and knowledge to employees through the
and run the intellectual property management platform for liquor storage security and fire Company's data standards. We promote the "iMoutai" platform
system and promote digital operation and control. protection and realize the integrated and visualized construction of a digital base with Moutai ●?Organize internal learning and training sessions to improve employees' awareness
management of personnel vehicles and events in cloud and big data platform at the core of network security
the demonstration area. complete the backbone network of double-
core campus construction and strengthen
data management capacity and technical Information security
support.●?Implement computing environment data encryption storage and transmission and
terminal protection in strict accordance with the requirements of level-3 classified
protection
In 2022
●?Establish data classification and grading management systems and authorize data
access and use on demand
Number of customer privacy-
related complaints received
0 Privacy protectiontimes ●?Promote digital identity authentication to protect the privacy of registered users
●?Push security know-hows through "iMoutai" to enhance users' awareness of privacy
protection44 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 45
Provide attentive services Improve consumer experience
"Consumer-centric" is Kweichow Moutai's eternal service philosophy. We execute the "five-integration marketing approach" to Third-generation Moutai Baijiu exclusive stores
protect consumers' rights and interests in all aspects. To allow each and every consumer to enjoy Moutai's quality products feel Focusing on the five key essentials of "seeing listening tasting
unique culture and experience attentive services with peace of mind we conduct responsible marketing protect consumer privacy eating and gifting" Kweichow Moutai has promoted the construction
and smooth consumer communication channels. of the Third-generation exclusive store integrating four functions of
"brand image cultural display drinking experience and customer
Kweichow Moutai's "five-integration marketing approach" service" further improved the service standards and product display
specifications of the exclusive stores and strengthened the brand
Resource Digital Cultural Brand Combination of culture and digital empowerment based on meeting the basic
integration integration integration convergence management functions of product display tasting and retail so as to provide
and service Moutai "attractive" products "attractive" culture and "attractive"
service experience to customers.Proactive Smart retailing Culture Brand Market
marketing with digital aggregation empowerment cultivation Moutai Baijiu tastings
and precise platform for long-term and structure and consumer
positioning prosperity optimization satisfaction We held Moutai Baijiu featured tastings transformed and upgraded
the traditional one-way output to two-way interactive communication
through innovating consumption scenarios and standardizing the
tasting process. Meanwhile we made the tastings more enjoyable and
High-quality services rewarding to connect with core consumer groups and enhanced the image of Moutai brand. Third generation Moutai Baijiu exclusive stores
We continue to optimize our service system strictly implement
the Standardized Ser vice Specifications for exclusive In 2022 Responsible marketing
Stores of Kweichow Moutai the Management Measures for
Customer Consultation and Complaints and other systems to
Customer complaint resolve rate Upholding the principle of integrity management Kweichow Moutai formulates the Management Measures for the Marketing and Promotion of standardize the management process of consumer services Moutai Liquor Distribution System the Guiding Principles for the Management of General Distribution Products (Brands) the Marketing Activities
and complaints. In addition we make the Customer Service Support Program for Kweichow Moutai Liquor and other systems. We standardize advertising and promotional terms clarify the application
Center a window for consumer consultation and complaints 100% and review process for advertising and promotion and specify the responsible departments to prevent exaggerated or false advertising in the
and provide the customer service hotline corporate email marketing process and safeguard consumers' rights and interests.official WeChat account "iMoutai" and other platforms to
serve consumers through multiple channels and forms. In this We require distributors to conduct responsible marketing in the same way as us. We provide special training sessions on marketing responsibility
way we ensure timely and effective response to consumers' for distributors channel traders and staff of self-operated stores and exclusive stores. The topics cover relevant laws and regulations service
feedback and meet their needs with high-quality services. specifications anti-counterfeiting and genuine products guarantee and analysis of marketing strategies in the digital age.Moderate drinking
Safeguard consumers' rights and interests
Kweichow Moutai vigorously advocates the healthy consumption concept of "Moderate Drinking" and absolutely fulfills the relevant regulations
stipulating that "no alcohol sales to minors". We fight against alcoholism and drunk driving engage actively in rational drinking campaigns assume
Product recall the social responsibility of a liquor manufacturer practice responsible marketing and foster harmony between the industry and society drinking
and consumer health.Develop the Management Measures for Leaking Baijiu Exchange
and Management Measures for Product Replacement (Rework) to
continuously improve product after-sales management and services "Care for Growth No Alcohol for Minors": National
Case
Alcohol Awareness Week 2022 In 2022
Product identification
Responsible Marketing Training
In response to consumers' product identification needs we carry On December 26 2022 the National Alcohol Awareness Week 2022 hosted by the China
out free identification activities regularly in our self-operated stores Alcoholic Drinks Association (CADA) was officially launched.Kweichow Moutai took an active
Coverage
in various provinces and cities across the country fully support part in it and joined the participants to speak out for rational drinking advocating "Care for
consumers defend their rights according to law and build up Growth No Alcohol for Minors". 100%
customer trust Kweichow Moutai's convenient identification activity publicity46 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 47
Link to the industry ecosystem Strengthen supplier management
We continue to strengthen supplier management. In 2022
Kweichow Moutai focuses on creating long-term value for the industry ecology deepens strategic deployment for the supply chain improves we formulated and issued the Regulations on Supplier In 2022
market environment and promotes industrial integration with distributors and builds a modern ecosystem. We also work with our value chain Relationship Management and the Rules on Supplier
partners to jointly create a benign development space and boost the high-quality development of the industry. Management for Package Storage Materials and revised and
issued systems such as the Supplier Management Measures Supplier annual audit ratio
and Procurement Management Measures. By facilitating the
Fuel supplier development establishment of a "chain chief system" for management 100%based on the "six chains" we aim to transform from
"procurement management" to "supply chain management"
Adhering to the general idea of "supply quality products build strong partnerships and connect with the modern world" Kweichow and from "transaction-based procurement" to "strategic
Moutai establishes long-term stable relationships mutual trust mutual benefit and win-win cooperation with suppliers through strict ecological construction".managementresponsible procurement and sincere and open communication.We promote supply management expansion and upgrade
from "business" to "chain" and from "chain" to "network" and use "six supply chains" to build a modern supply network for Moutai.●?According to the Procurement Management Measures evaluate suppliers comprehensively in
Raw and auxiliary terms of technology quality service and qualification. The Legal Compliance Department reviews
material supply chain procurement documents and builds inspection teams to conduct on-site audits according to
project needs
Build a supply chain of raw and auxiliary
materials with high-quality varieties
●?Explicitly require suppliers to provide qualification documents pertaining to quality environmental
advanced planting techniques and modern protection occupational health food safety etc. to ensure that they are well qualified and
storage and transportation facilities competent
●?Build an electronic procurement platform to manage the procurement process in a standardized
procedural and information-based manner
Digital supply chain Package and storage Supplier access
Build a digital supply chain with supply chain
pioneering technology leading Build an eco-friendly package
innovation and region-wide and storage supply chain ●?Formulate and strictly implement the Supplier Management Measures Supplier Relationship
collaboration with professional design and Management Regulations etc. to clarify the management responsibilities of each department and
superior quality standardize the supplier management process
Create "six ●?Implement classified and graded supplier management classify suppliers into strategic
supply chains" guaranteed and competitive categories based on their impact on the Company's development strategy and production operation and improve the quality and efficiency of existing supplier
management
Supplier management
Equipment supply Engineering supply
chain chain
Build an equipment supply Build an engineering supply
●?
chain with stable channels chain with first-class planning Conduct regular annual supplier reviews with assessment criteria covering multiple dimensions
efficient R&D and powerful scientific design and excellent such as product quality supply timeliness service quality and rectification and include social
operation and maintenance quality and environmental elements such as safety management energy consumption and emission
management into the assessment system
Service supply chain ●?For suppliers who fail the evaluation we request them to rectify within a certain period of time
Build a service supply chain and submit a written commitment. If they still fail after rectification we will consider terminating
with professional services partnership with them
cutting-edge mindset and Supplier audit
remarkable efficiency48 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 49
Build a sustainable supply chain Grow with distributors
We practice responsible procurement incorporate green and clean requirements into our supplier management system and
update and improve the Supplier Management Measures and Supplier Relationship Management Regulations. We select and Considering distributors as key partners Kweichow Moutai works with them to improve the quality and efficiency of marketing
cultivate suppliers with outstanding environmental and social performance as long-term partners to secure a sustainable supply efforts by adopting"five-integration marketing approach". We actively communicate with distributors to share industry dynamics
chain and thus enhance the overall competitiveness of the value chain. and organize special training sessions to help improve their capabilities. Furthermore by setting up a sound assessment and
evaluation mechanism for distributors we enhance their core competitiveness channel loyalty suitability and motivation for
cooperation forming a strong strategic cooperation alliance with them.Green procurement Procurement integrity
In 2022
Standardized management Distributor training
Adhering to the principle We firmly adhere to the Supplier procurement integrity
of "ecological prior and principle of "compliance Formulate the Management Measures for Distributors Organize online and offline business training sessions coverage ratio
green development" we with laws regulations and of Moutai Baijiu and Jiang-Flavor Baijiu Marketing Co. for distributors covering 19 provinces in Southwest
give priority to establishing discipline" formulate such 100 Ltd. to enhance marketing network management; Northwest Central and East China; improve distributors' strategic partnerships regulatory documents as % add the distributor integrity commitment clause to knowledge base and practices in marketing strategy
with environment-friendly the Registration and Filing the Distribution Contract to specify distributors' anti- development corporate culture new developments
enterprises prefer green System for Leadership corruption obligations in the liquor industry and production management
products and services in Instructions During Material processes. During the Reporting Period 1131
procurement and encourage Supply Business Operations participants attended offline training sessions and 4500
suppliers to carry out and the Prohibitive Provisions participants attended online sessions
environmental R&D. for Material Supply Integrity
and incorporate integrity Distributor communication Marketing platform construction
management into supplier
assessment. Establish the responsibility system of first asking With the "iMoutai" digital marketing platform as
and conduct regular investigations and field visits the core bond we work with distributors to create a
to distributors to learn about their needs and grasp marketing channel featuring "platform-based unified
Promote supplier communication market-related information. Regularly organize sales centralized online settlement and precise offline
marketing work meetings to commend distributors distribution" of Moutai Baijiu and integrate multiple
We value frank and transparent communication and exchange with suppliers. For the sake of mutual growth we organize training with excellent performance. During the Reporting resources to build a S2B2C online and offline integrated
and communication sessions with suppliers help them establish the sense of responsibility use our resources to provide technical Period 115 distributor group awards and 35 individual liquor sales model to empower our distributor partners
and financial support to suppliers to improve their supply capacity and enhance the anti-risk capability of the supply chain. awards were granted with the marketing platform and jointly promote the
In 2022 the company steadily promoted the construction of raw and auxiliary material storage and supporting facilities for digital transformation of marketing
suppliers formulated and implemented systems such as "Supplier Warehouse Construction Improvement Plan" "Quality
Management Improvement Plan for Husk and Straw" and "Management Improvement Plan for Husk and Straw Suppliers"
supported and urged suppliers to establish standardized raw and auxiliary material transfer warehouses around Moutai plant
and guided suppliers to introduce equipment such as raw material sorting and rapid pesticide residue detection further improve Case Kweichow Moutai Marketing conference
supplier quality assurance capabilities through in-depth cooperation and technical support.On December 30 2022 the Kweichow Moutai Marketing
"Building foundation with suppliers" "enhancing Conference was held in Sanya Hainan. Representatives of
In 2022 distributors from all provinces and cities were invited to make Case tenacity with supply chain" and "achieving greatness a comprehensive review of Kweichow Moutai's marketing
through our people"
Number of annual supplier work in 2022 make a scientific deployment for 2023 and focus
training on the " five-integration marketing approach" as a guide to
On October 27 2022 the 2023 Annual Procurement and Supply Chain Conference provide consumers with service throughout the product life
was held in Moutai International Hotel with the theme of "Embracing a Brighter cycle. The conference also held a distributor award ceremony
Future by Integrating Chains and Promoting Digital and Intelligent Technologies". 19times to commend outstanding dealers such as the 2022 "Excellent
More than 200 supply partners attended the conference either online or offline. The Channel Merchant Award" "Sailing Together Award" and "Five
Company communicated deeply with suppliers on "procurement and supply system in One Marketing Innovation Award" so as to recognize and
reform and supply chain modernization" signed cooperation agreements with encourage the outstanding contributions of distributors and
representatives of 9 strategic partners and awarded 25 excellent supply partners in create a new pattern of marketing work in which manufacturers Kweichow Moutai Annual Marketing conference
2022 striving to build up sustainable supply partnerships. interact and distributors work together with one heart.50 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 51
Lead industry development
Case Heritage: Inheritors of Moutai embark on a journey to explore the origin of Moutai culture
Based on the technical advantages as a leading liquor manufacturer and our "Moutai Standards" Kweichow Moutai takes an
On July 8 2022 hundreds of Moutai distributors and inheritors from Fujian Jiangsu Shanxi Hunan Tianjin Shandong and active part in the development of industry standards as well as exchanges and seminars. We also carry out a variety of activities on
Jiangxi came to Moutai and started a journey to explore the origin of Moutai culture in a competitive manner. Inspired by the promoting capacity building value sharing and win-win cooperation and facilitating technical reform and industry development."Five-Line"high quality development path the event divided the participants into five teams: blue green white purple and red.It guided the participants to landmark sites such as the Moutai liquor brewing industrial heritage buildings the Chishui River
the Chinese Liquor Culture City and deeply integrated the content of the event with the Moutai culture so as to stimulate the
cohesion centripetal force and combat effectiveness of the inheritors of Moutai inject new vitality into the sustained healthy and
stable development of Moutai liquor marketing business. Give full play to the role of the Jiang-flavor Baijiu Sub-Committee as a secretariat to ensure
high-quality and efficient performance of its duties and functions actively promote standard
development in terms of environmental protection safety greening and digitalization to
Play a secure an advanced scientific and applicable Jiang-flavor Baijiu standard system and boost
leading role sustainable and healthy development of the industry.Persistently promote the establishment and implementation of the industry standard system
to provide standard technical support for the high-quality development of Jiang-flavor
Baijiu. In 2022 the Company accelerated the revision of the national standard of Jiang-flavor
Baijiu completed the draft national standard of Quality Requirements for Baijiu Part 4: Jiang- Promote
flavor Baijiu and revised 42 national industry and group standards and 102 company-level standard
technical standards. construction
Explore diversified communication and cooperation mechanisms support and participate in
a number of industry communication activities including "Seed Industry Revitalization and
competitive Modern Agriculture" and build friendly relations with industry peers through visits exchanges
and forums seminars etc. to cultivate an ecosystem featuring competitive and cooperative development in which all players value each other for mutual prosperity.cooperative
Kweichow Moutai participated in the leadership change in the 2nd Session of the Jiang-flavor
Case Liquor Sub-Committee of National Technical Committee on Chinese Spirits of Standardization
Administration of China
On December 9 2022 Kweichow Moutai held the inaugural meeting of the 2nd Session of the Jiang-flavor Liquor Sub-Committee
of National Technical Committee on Chinese Spirits of Standardization Administration of China and the first General Meeting
which marked the official establishment of the 2nd Session of the Jiang-flavor Liquor Sub-Committee. Kweichow Moutai played
an active part in the leadership change took responsibility as secretariat of 2nd Session of the Jiang-flavor Liquor Sub-Committee
and jointly promoted the high-quality development of the Chinese spirits industry.Inheritors of Moutai embark on a journey to explore the origin of Moutai culture52 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 53
03 Guard the Picturesque Landscape for a
Beautiful Ecosystem
Pursuing sustainability with green operation has become a
consensus among enterprises. Kweichow Moutai unswervingly
follows the path of green development and focuses on
key areas such as ecological environmental protection
energy saving and carbon reduction pollution control and
water resources management to constantly improve its
comprehensive ecological and environmental protection
management capabilities build a green low-carbon and
sustainable development path and move towards a green
future featuring ecological beauty and corporate prosperity.SDGs
●?Strengthen environmental management
●?Addressing climate change
●?Manufacture and operate in a green manner
●?Preserve biodiversity54 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 55
Strengthen environmental management Environmental management measures
Kweichow Moutai implements full-process environmental management and carries out environmental factor identification on an
Kweichow Moutai deeply practices the philosophy of green development with ecology as the priority firmly takes the "green annual basis. By building an environmental management platform and a regular monitoring mechanism the Company monitors
line" development path and integrates environmental responsibility into corporate development strategy and daily operation measures and controls relevant environmental factors and carries out special improvement actions to enhance environmental
and management. Revolving around the construction of "one base and one benchmark" (Building a Demonstration Base for management in all aspects.the Practice of Xi Jinping's Thought on Ecological Civilization and creating an Eco-environmental Benchmark Enterprise) we
systematically ramp up our environmental management to secure continuous improvement of the brewing eco-environmental
quality of Moutai. Environmental factor identification
●?Develop a green development technical standard system for the entire chain of design use monitoring
Environmental management mechanism and governance of all factors
●?Identify environmental factors issue a list of important environmental factors and develop
Kweichow Moutai strictly complies environmental factor control measures
with State laws and regulations such Kweichow Moutai's ●?Establish the environmental footprint list and evaluation and analysis methods
as the Environmental Protect ion ISO 14001:2015
L a w o f t h e Pe o p l e ' s Re p u b l i c o f certification
China continuously improves our Management platform construction
environmental management system
and structure and standardizes the ●?Build a comprehensive data management platform for collecting preserving and maintaining eco-
environmental management process. environmental protection data to achieve eco-environmental monitoring and facilitate information-
During the Reporting Period the based management
Company has passed the GB/T 24001-
2016/ISO 14001:2015 Environmental ●?Establish an intelligent water resources management platform for the whole process of water extraction
Management System certification. water supply water use water discharge and recycling to strengthen water resources management
capabilities
Management structure ●?
Environmental management structure of Set up a platform for monitoring the operation of gas boilers and flue gas emissions systematically
The Company continues to improve its environmental promote steam metering management and enhance the management capacity of flue gas and other Kweichow Moutai
management structure with the Corporate Eco-Environmental major pollutants
Protection Committee as the highest decision-making Eco-Environmental
body the Deputy General Manager assuming leadership Protection Committee
responsibility and the Eco-Environmental Protection Deputy General Manager Regular monitoring
Department as a specialized agency for environmental of Kweichow Moutai
●?
management. The Company ensures the effective operation Water environment quality: Monitor a total of 10 indicators including pH temperature flow rate
of its environmental management mechanism through a clear chemical oxygen demand ammonia nitrogen total phosphorus total nitrogen suspended solids Environmental Emergency
top-down management structure. Ecology and Environmental chromaticity 5-day biochemical oxygen demand at 11 cross-sections of the Chishui RiverResponse Office/Team of Protection Department ●?
Kweichow Moutai Atmospheric environment quality: Monitor 6 indicators covering sulfur dioxide nitrogen oxide carbon Regulatory system monoxide ozone PM10 PM2.5 at 5 air quality monitoring stations in the plant area
The Company further standardizes the environmental management process in accordance with the Overall Plan on Building ●?Meteorological environment: Monitor wind speed wind direction temperature atmospheric pressure
a Demonstration Base for the Practice of Xi Jinping's Thought on Ecological Civilization and Creating an Eco-environmental humidity rainfall sunlight intensity at 3 monitoring stations in the plant area
Benchmark Enterprise the Compliance Guidelines for Eco-environmental Protection the Eco-environmental Protection
Management Regulations the Rules for Appraisal of Eco-environmental Protection Work and other measures. We also formulate
management rules on matters such as sewage waste and environmental emergencies to develop a sound environmental
management system. Special improvement actions
Performance appraisal ●?Implement five special projects namely "increase of ecological water utilization improvement of air
quality soil pollution control protection of microorganism and ecosystem balance" to build a modern
The Company formulates the Rules for Appraisal of Eco-environmental Protection Work requires key managers to sign the industrial development pattern featuring harmony between human and nature
Letter of Responsibility for Environmental Protection and specifies the requirements for environmental performance appraisal
●?
in the Comprehensive Appraisal Management Measures. We link environmental performance with the remuneration of Implement special actions of energy saving carbon reduction and efficiency enhancement green
senior management and the promotion remuneration and bonuses of general employees to ensure the implementation of product design green transformation of industrial chain green technological innovation and green and
environmental management responsibilities. low-carbon lifestyle to comprehensively promote green production methods56 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 57
Addressing climate change
Climate change has emerged as a global responsibility issue of great
concern that poses serious challenges to the development of various
industries. Guided by China's target of "reaching carbon peak by 2030
and carbon neutrality by 2060" Kweichow Moutai takes an active part in
climate action optimizes its energy consumption structure and gives full
play to its management efficiency to pursue sustainable development.Identification of climate change risks and opportunities Promote energy saving and carbon reduction
Kweichow Moutai pays close attention to the profound impact of climate change on our production and operation identifies Kweichow Moutai establishes the energy management system with high standards and improves energy management efficiency
climate change risks and opportunities in the liquor manufacturing industry based on the recommendations of the Task Force on based on the Energy Management Manual Energy Operation Management Regulations Energy Data Management Regulations
Climate-Related Financial Disclosures (TCFD) and strives to manage climate change risks in our business. and other policies and systems to actively respond to climate change. The Company sets up annual energy consumption targets
in accordance with the Energy Conservation Target Management Regulations and decomposes the targets into workshops such
Kweichow Moutai Climate Risk and Opportunity Potential Impacts as liquor-making power and yeast-making to reinforce energy consumption supervision and assessment and drives down Identification Results comprehensive energy consumption. By the end of the reporting period the Company has obtained the ISO 50001:2018 Energy
Policies and Increase in compliance costs to meet national and industry "Dual Management System certification.Laws Carbon" related regulatory requirements The Company continues to optimize the energy use structure develop energy-saving and eco-friendly technologies formulate
Additional research inputs for new technologies to meet low- carbon emission management plans and build a new power system dominated by new energy sources. We have set the carbon
Technologies carbon emission requirements as well as increased operating reduction target of reaching full green power coverage in Kweichow Moutai headquarters by 2023 to accelerate greenhouse gas
Transformation costs for renovating existing R&D and production facilities emission reduction and fuel our clean and low-carbon development.risk Higher production costs due to changes in raw material prices
Markets (e.g. energy water etc.) and emission requirements (e.g. waste
treatment wastewater discharge)
Higher expectations from regulators investors customers and
Risks other stakeholders in addressing climate change and related
Reputation
information disclosure and adverse reputational risks arising
from inadequate action or disclosure
Reduced or disrupted capacity due to extreme weather
Acute events affecting daily production operations and supply chain
Entity disruptions
Increased operational risk due to changes in the production
risk environment raw material production biological flora etc.Chronic
required for brewing due to long-term climate and environmental
changes
Enhanced execution efficiency and profitability of core products
Products and services
and reduced product costs Kweichow Moutai's ISO Kweichow Moutai's certificate for green power purchase
Increased efficiency in the use of energy water packaging 50001:2018 certification
Opportunities Resource efficiency materials etc. to reduce resource consumption and lower
operating costs
Lowered risk of future energy price hikes by promoting the use of
Energy
low-emission energy or clean energy (e.g. biomass energy)58 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 59
Energy saving and carbon reduction initiatives
Procurement of green power Platform construction Produce and
Optimize the structure of energy use and procure 44 million Build an energy metering and intelligent system platform
kWh of green power which is equivalent to the reduction of monitor data of key energy supply equipment and plant operate in a green
32930.60 tons of carbon dioxide 20.68 tons of sulfur dioxide energ y consumption onl ine real ize automatic and
and 18.92 tons of nitrogen oxide information-based energy data statistics and analysis and manner
improve the Company's energy supply management level
Guided by the idea of green development Kweichow
Equipment renovation Green logistics Moutai ramps up resource and emission management
Replace aged energ y-consuming equipment such as Explore measures such as rational layout and planning of supports water conservation and soil conservation of
transformers motors and condensers renovate 4500 drying transport routes shorten transport routes improve vehicle the Chishui River and promotes water environmental
lights in the liquor-making workshop and replace energy- loading rates regular maintenance of transport vehicles protection. By implementing the "clean multi-circulation
consuming motors in the secondary pumping station to and use clean energy to reduce carbon emissions in the and low-emission" production model we minimize our
reduce equipment energy consumption logistics chain environmental impact as much as possible and promote
green transformation and pursue better development
during economic development.Low-carbon travel Green office
Sustain the commute mode featuring "green and low-carbon Encourage workshops to formulate and implement scientific
multiple means integration and two points and one line" power consumption plans advocate reasonable use of
encourage employees to take service vehicles and to purchase air conditioners and lighting in office areas and promote
renewable energy vehicles paperless office based on an information management Water resources protection
platform
Water resources is one of the most indispensable resources of Kweichow Moutai. Benefiting most from the sound eco-
environment of the Chishui River Basin we built a scientific water resources management system for the whole process of "water
extraction water use and water treatment". The Company improved the recycling rate of water resources through equipment
In 2022 and technological innovation and endeavored to improve water environment management to protect the water ecological
environment.Comprehensive energy consumption intensity Electricity consumption intensity
Rational use of water resources
0.01ton standard coal/CNY 10000 revenue 6.68kwh/CNY 10000 revenue
Scientific monitoring Layout optimization
There is 1 water intake in the Moutai plant area. Promoted ongoing water supply pipeline network
Natural gas consumption intensity We built ecosystem monitoring stations in the investigation and renovation projects optimized
8.18 Diesel Consumption areas around the water intake to keep a close pipeline layout pipeline leakage supervision as watch on changes in water resources indicators well as maintenance response and enhanced m3/CNY 10000 revenue 645.73 such as water quantity and quality improved the water extraction and utilization benefitston water environment early warning system and
prevent water resource risks in water intake areas
Gasoline Consumption
219.16ton System upgrading Process improvement
Launched intelligent water metering equipment Encourage workshops to optimize production
and optimized the management and operation processes replaced cellar mud soaking with
of cooling water recycling system concentrated moistening make cellar bottom with liquor
water reuse system and continuously improve the tailings instead of water further reducing water
efficiency and benefits of water recycling saved consumption in the production process and
Calculation method description: The comprehensive energy consumption intensity is calculated based on the General 2015700 ton of water through system upgrading lowering the pressure on local water resources
Principles for the Calculation of Comprehensive Energy Consumption (GB/T2589-2020) and is directly converted from the energy during the reporting period caused by production and operation
consumption of gasoline diesel natural gas and electricity.60 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 61
During the Reporting Period the wastewater discharged by the Company all met the Table 3 (Direct discharge standards) of the
Discharge Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry (GB 27631—2011). Furthermore the Green packaging materials
Company has set the discharge target of having discharged wastewater from the park reach the quasi-surface water Class IV or Kweichow Moutai boosts the development of circular economy and formulates systems such as Product Development
higher standards by 2025. Management Procedures Packaging Material Restriction Requirements for New Product Development and Waste Material
Recycling Management Regulations. Specifically we manage the packaging materials used in the production process such as
Strengthen wastewater discharge management cartons colored paper boxes glass liquor bottles ceramic liquor bottles plastic bottle caps metal bottle caps and ribbons with
the ideas of reduction greening and recycling use renewable materials to produce paper boxes handbags cups and glass bottles.We make great efforts to promote the liquor bottle recycling project and plan to recycle 6 million milky glass bottles in 2023
through reverse logistics.Packaging material management
Standardized treatment Harmless discharge Reclaimed water reuse
Reduction
S t r i c t l y s t a n d a r d i z e d t h e Enhanced the comprehensive For waste water that meets
wastewater treatment process wastewater treatment capacity the standard after treatment Incorporating green packaging indicators into the development process
improved wastewater treatment c o n t i n u o u s l y c a r r i e d o u t we collect and use it again for of new products. In 2022 we reviewed the packaging materials of 429
facilities and established a research on the technique greening maintenance ground products of the Company sorted out and analyzed excessive packaging of
pipe network system for plant of wastewater treatment for washing and other purposes products and adjusted 5 excessive packaged products to reduce the use of
cleaning sewage and rainwater- Jiang-flavor Baijiu production to realize the full utilization of packaging materials
diversion. Implemented market- improving the water quality water resources. During the
based operation of wastewater o n l i n e m o n i t o r i n g s y st e m reporting period reclaimed
treatment and ensure compliant and operation management water reuse volume 167400 ton
discharge of wastewater through mechanism of end treatment Greening
online monitoring system of fa c i l i t i e s w i t h t h e a i m o f
wastewater treatment realizing harmless discharge to Adopting biodegradable recyclable and reusable packaging as far as
Chishui River possible and developing the Packaging Material Technology Blacklist
(Environmental Protection Category) and List of Prohibited and Restricted
Packaging Materials to include non-eco-friendly packaging materials in the
list of prohibited and restricted use
In 2022
Water consumption intensity COD reduction Recycling
0.70 4995.24 Working with logistics and cultural tourism companies under Moutai Group ton/CNY 10000 revenue ton to gather liquor bottles and other packaging materials and transport them
back through the national warehousing and distribution centers and trunk
transportation resources of logistics companies and put them into reuse as
raw materials for packaging materials or materials for cultural and creative
COD discharge Ammonia nitrogen reduction products
55.12ton 102.99ton
In 2022
Ammonia nitrogen discharge
0.66 Number of renewable packaging materials usedton 445 million pieces62 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 63
Emission reduction management
Exhaust gas emissions Waste management
Kweichow Moutai strictly implements air pollution prevention and control measures. By installing continuous monitoring systems The company makes great efforts to strengthen waste management formulates the Waste Material Recycling Management
for flue gas emissions in boiler rooms and monitoring air quality in real time through five air monitoring stations set up in the Regulations identifies and sorts out the waste generated in its production and operation activities and adopts targeted prevention
plant we continuously control and reduce emissions of air pollutants such as construction dust boiler flue gas and motor vehicle and management measures and recycling methods to mitigate the negative impact of its operation on the environment.exhaust to guard the clean blue sky.Hazardous waste Solid waste
Types of exhaust gases and their prevention and control measures
●?Hazardous waste generated from production ●?Solid waste generated in the brewing
and equipment operation: Identify the process:Deliver the brewing by-products to
Dust from construction welding grinding and other operations hazardous waste in accordance with the Moutai Ecological Circular Economy Industry
Enhancing the standardized management of dust from projects under construction and National Hazardous Waste List establish a Demonstration Park for unified treatment
roads in the Moutai Baijiu Geographical Indication Reserve and effectively control the hazardous waste management ledger set and produce natural gas organic feed and
emission sources of respirable particulate matter lungable particulate matter ozone and up temporary storage rooms for hazardous organic fertilizer by multi-stage utilization
other air pollutants waste and tighten supervision over the whole of waste lees supplemented by adding the
process of collection storage transportation brewing by-products such as waste cellar
Sulfur dioxide and nitrogen oxides from operating boilers and disposal. All hazardous wastes generated mud into fertilizer and waste yeast grass into are disposed of collectively by qualified feed to realize resourceful utilization of all
Using natural gas-powered low-pollution gas boilers to consolidate the results of the third-party entities to avoid environmental brewing by-products and form a green cycle."coal-to-gas" conversion and promoting the low-NOx transformation of gas boilers to pollution. in 2022 a total of 5.57 tons of waste
effectively reduce sulfur dioxide and nitrogen oxides emissions ●?Building–related construction waste:Reduce oil 15.50 tons of hazardous chemical wastes the production of waste soil and sludge
and experimental liquid waste 14.89 tons of during project construction by balancing
Motor vehicle emissions waste lead batteries and 4.36 tons of other excavation and filling classifying waste soil hazardous wastes were disposed through
Promoting the gradual replacement of the plant's official commuter vehicles with natural recycling topsoil etc.qualified third-party entities.gas ones and implementing the even-odd license plate policy for employee vehicles
which can reduce tailpipe emissions by 120 million m3 per year
Hazardous Hazardous waste Solid waste
SO2 emissions NOx emissions waste disposed harmless disposal rate utilization rate
4.36 ton 77.56 ton 40.32ton 100% 100%64 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 65
Construction of ecological protection forest
We facilitate the construction of key greening projects such as the ecological protection forest of Tanmao Express Line and the
main traffic corridor of the plant in accordance with the "production-living-ecological" spaces plan to improve afforested area and
build a green barrier. In 2022 we arranged for about 1200 employees to plant a total of 4206 trees in the voluntary tree-planting
Preserve biodiversity activity during the Spring Festival added afforested area 45000 square meters with a total afforested area of 1475000 square meters; A total of 12 "Clean Chishui" Moutai Youth Volunteer River Patrol Campaigns were carried out collected 750.89 kilograms of
garbage along Chishui river.Kweichow Moutai regards the ecological environment as its core productivity superior product quality
depends on the unique natural environment. The Company strictly abides by the Convention on Biological High-quality tailwater ecological wetland
Diversity and other eco-environmental protection conventions and policies and deeply implements the
philosophy of "lucid waters and lush mountains are invaluable assets". We are committed to enhancing We standardize the process of brewing wastewater treatment of Jiang-flavor Liquor by leveraging the brewing wastewater green
the comprehensive management of the eco-environment and building a community of shared destiny by treatment technology system for Jiang-flavor Liquor. Using the discharged water from the wastewater system as a source we build
protecting terrestrial aquatic and microbial biodiversity in the Chishui River Basin the Zhonghua ecological wetland to support water ecology and environment protection of the basin. The discharged water is
treated by ecological means. After treatment the quality of discharged water meets the surface water Class III standard.Cultivate a green ecology Honored as 2022 "Lucid Waters and Lush Mountains Are Invaluable Assets" Practice Case
Innovation Base
Kweichow Moutai attaches great importance to the protection of biological habitats. That's why we formulate and implement the
"production-living-ecological" spaces plan comprising an intensive and efficient production space a beautiful ecological space
and a green and low-carbon living space. Moreover we actively protect the eco-environment of the Chishui River enlarger afforests Kweichow Moutai deeply implements the philosophy of "lucid waters and lush mountains are invaluable assets" and insists on the
area in the plant and promote the construction of a ecological improvement project in the China Wastewater Treatment Plant path of "green development with ecology as the priority". We innovate an ecological environmental protection demonstration area
with a view to forming a new pattern of harmonious coexistence of human and nature. with Moutai characteristics actively promote industrial ecology and ecological industrialization and organically combine economic
and social development with ecological environmental protection. We continuously improve the ecological environment raise the
Protect the ecology of the Chishui River public satisfaction and construct the "Lucid Waters and Lush Mountains Are Invaluable Assets" community to form a path model
of "protecting microorganisms to improve efficiency using culture to achieve green development boosting agriculture based on
green development and formulating systems to empower development". The Moutai Liquor Geographical Indication Reserve was
Assistance in the enactment of regulations honored as 2022 Guizhou Province's "Lucid Waters and Lush Mountains Are Invaluable Assets" Practice Innovation Base.Kweichow Moutai assists the government in the promulgation of the Regulations on Environmental
Protection for the Production of Jiang-flavor Baijiu in the Chishui River Basin of Guizhou Province to
regulate the discharge standards of liquor production effluent and strictly prohibit construction waste
soil and project water from reaching the channels of the Chishui River. Kweichow Moutai attended the side event "Ecological Civilization: Towards Harmonious
Case Development between Human and Nature" at the second phase of the 15th meeting of
the Conference of the Parties to the Convention on Biological Diversity (COP15)
Investment in ecological management
In December 2022 Kweichow Moutai attended the side event
The Company donated RMB50 million for ecological management of the Chishui River Basin in 2022. "Ecological Civilization: Towards Harmonious Development
between Human and Nature" at the second phase of the
COP15 in Canada co-hosted by the Chinese Research Academy
of Environmental Sciences (CRAES) the United Nations
Reproduction and returning activities Development Programme (UNDP) and the Endangered Species
Scientific Commission of the People's Republic of China. At the
Carry out reproduction and returning activities in the Chishui River after commissioning professional meeting we introduced the typical experience and practices of
institutions for biodiversity and health quality inspection releasing a total of 120000 fish. Kweichow Moutai in protecting the biodiversity of the Chishui
River Basin and the practice of "lucid waters and lush mountains
are invaluable assets" from the aspects of "coexistence co-
Ecological research governance and sharing". We also expressed our commitment
to continue fulfilling our corporate social responsibility and
Partner with the Institute of Hydrobiology (IHB) Chinese Academy of Sciences (CAS) to carry out
advocating the green development of enterprises in the basin
the project of "Research on the Technical System of Water Ecological Health Assessment of Chishui
which was well received by the guests.River" collecting fish taxa benthic invertebrates water environment samples zooplankton and
microorganisms from 25 monitoring sites in Chishui River and initially identifying 70 species of fish and Kweichow Moutai attended the "China Corner" side event of
more than 20 species of benthic animals. COP1566 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 67
Special protection projects
In 2022
Brewing relies on a unique microbial environment where a balance of water air soil and ecology is crucial. We take proper account
of the relationship between Kweichow Moutai and nature to respect accommodate and protect nature. Upholding a systematic
Headquarters plant area excellent Number of eco-friendly lectures Total area of "Moutai Forest" mindset we implement the five special projects namely increase of ecological water utilization improvement of air quality
air quality rate
9 145 soil pollution control protection of microorganism and ecosystem balance as well as the five special actions of energy saving 99 times mu carbon reduction and efficiency enhancement green product design green transformation of industrial chain green technological % innovation and green and low-carbon lifestyle. In this way we build the community of life among mountains waters forests soil
rivers and microorganisms and consolidate our base of green development.Increase of ecological
Protect biological flora water utilizationMonitor the water ecological
The special microbial environment contributes to the unique flavor profiles of Moutai Liquor and Jiang-flavor Liquor. As such Improvement of environment of water sources and set Soil pollution
Kweichow Moutai continues to promote the scientific application and research of brewing microorganisms as well as the air quality the "upper line" of water extraction the control
collection and protection of microbial resources and actively seek strategic cooperation with others in microbial research to jointly Monitor meteorological data "red line" of water consumption and Optimize the spatial layout
advance brewing microbial research. of the Chishui River basin the "bottom line" of water discharge of land in the core area
strengthen air environment enhance protection of land
monitoring capacity reduce resources in the cultivation
Microbiological research regional air pollutant area build an ecosystem for
emissions and promote soil and water conservation
Centering on the three major research directions of "microbial diversity stability and metabolic complexity" Kweichow Moutai joint prevention and control in the core area and
works with various institutions such as the IMCAS and the IHB-CAS and the CRAES to carry out a number of collaborative of regional air pollution enhance research on the
projects and actively implement research in multiple fields such as brewing microbiology water environment microbiology and reserves and quality of
proteomics. aubergine mudstone
Research on microbial resources Microbial metabolism research
Identify more than 600 strains of 25 species Advance the research of microbial metabolites Protection of Ecosystem balance
of Clostridium in the study of the cellar floor and peptide analysis of the Daqu of Jiang-flavor
environment and identify and conserve 43 new Baijiu. We found that 6 new antibacterial peptides microorganism Build an integrated
species of Clostridium. A total of 1946 species of in Daqu show good antibacterial effects on both Monitor the composition monitoring network
brewing-related microorganisms were identified E. coli and S. aureus driving Moutai's science and and quantity of conduct research on the
including 1063 species of bacteria and 883 technology innovation research to leap from the microorganisms strengthen evaluation of ecological
species of yeast and filamentous fungi building a micron level to the nano level basic research on and environmental carrying
database of brewing microorganisms for Moutai microorganisms reduce capacity and coordinate
Baijiu exogenous microorganisms the management of
and offer environmental the community of life
conditions suitable for the among mountains water
Microbial community research Microbial temperature research Microbial ecology research growth and metabolism of forests soil rivers and brewing microorganisms microorganisms
Cooperate with Wuhan University Partner with Jiangnan University on Collaborate with the IMCAS to carry out
on the project of "Analysis of the projects such as "Research on the the project "Study on the Improvement
Collaboration Mechanism of Acetic Formation Mechanism of Aspergillus of the Tail Water Standard of Brewing
Acid-Producing Microorganisms in the N i ge r i n J i a n g - f l a v o r D a q u " a n d Wastewater Treatment Plant Based on
Brewing Process and Development "Fine Analysis of the Driving Force the Microbial Ecological Remediation
of a Rapid Quantification Method" to of Rapid Excessive Accumulation of Technology" to research the influence
conduct research on the composition of Lactic Acid in Brewing Process" to of microorganisms on ecological
the microbial community of fermented conduct experiments on the effect of restoration
grains temperature on various key lactic acid
bacteria68 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 69
04 Create a Better
Life Together
SDGs
Growing together with its employees and living in
harmony with the community is an important way
for a company to pursue sustainability. It is also
a value pursuit for Kweichow Moutai. Adhering
to the people-oriented approach we protect the
rights and benefits of our employees and value
their growth and development respond actively to
demands of the community and devote ourselves
to the national strategies such as rural revitalization.As a responsible corporate citizen we fulfill our
responsibilities to create a better life and share the ●?Improve employee well-being
future with the community. ●?Gather the power of goodwill
●?Contribute to rural revitalization
●?Fulfill responsibilities70 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 71
Improve the salary Strengthen performance Optimize the
system appraisal salary model
Revise the Implementation Formulate the Management Design a salary model with
Measures for Salary Regulations on Performance job salary and performance
Management and improve Appraisal for High-Quality salary as the mainstay
the system for issuing Development and give full and multiple distribution
employees' performance pay play to the incentive role of methods coexisting to link
allowances overtime pay and performance appraisal to salary job and performance
vacation pay further mobilize employees closely and stimulate the
and boost enterprise vitality of talents
management effectiveness
Improve employee
well-being In 2022
Total employees Total male employees Total female employees
Upholding the concept of "employees are the most valuable asset and talents are the first resource" Kweichow Moutai integrates the growth 31413 21058 10355
of employees with our development and creates an inclusive and comfortable working environment. At the same time we provide smooth
promotion and development channels for employees pay attention to their needs building positive and harmonious labor relations. To align Employees 35 and below Employees between 36 and 50 Employees above 50
employee growth with our development we provide adequate protection of rights and interests fair opportunities and better development
prospects for our employees. 18126 12116 1171
Employee rights and benefits
Kweichow Moutai strictly abides by the Labor Law the Labor Contract Law and other national laws and regulations. To fully protect
the rights and interests of employees we constantly improve our employment management and compensation and welfare system. Employee management and care
Protection of rights and interests Kweichow Moutai provides employees with fair development
opportunities and sound career platforms. We adhere to In 2022
The Company formulates the Management Measures for Employee Recruitment and other systems and enters into fulfills changes dissolves or the principle of equal pay for equal work between men and
terminates labor contracts with employees in accordance with law. We adhere to the principles of openness competition and meritocracy and women care about employees' demands and voices and
eliminate discriminatory behavior and employment restrictions against nationality gender age race religion pregnancy and disability. We respect are committed to creating a working environment marked
the rights and interests of employees oppose discrimination in employment and strictly prohibit harassment in the workplace. Any form of forced by respect and inclusiveness enhance employees' sense of Employee turnover rate 0.3%
labor and recruitment of child labor is prohibited. We secure the authenticity and compliance of personal information and prevent child labor from belonging from the aspect of salary and benefit spiritual
occurring at the source by specifying requirements in our job description and strictly examining identity information in accordance with regulations. pursuit and fulfillment.Welfare benefits Employee care
The Company continues to optimize the employee compensation management system reform the income distribution system and build a
market-based compensation system that is externally competitive internally fair and incentive-based. The Company makes active efforts to improve We continue to improve the Loving Care Project Management Measures and provide funds to support employees in difficulty and retirees. For
the employee pension and medical security system continues to improve the enterprise annuity system and timely declare employee pension insurance employees who are unable to perform their jobs due to physical conditions the Company have formulated the Management Measures for the
medical and social insurance. Besides we purchase comprehensive personal accident insurance for all employees to secure their lives and livelihood. We strictly Withdrawal and Transfer of Employees from Incompetent Positions which specifies the basic conditions treatment provisions processes and
implement the statutory working hours and rest and leave system revise the Leave and Attendance Management Measures to ensure that all employees are mechanisms for internal withdrawal and position adjustment. We also help employees with special needs transfer or adjust to production support
entitled to statutory holidays paid holidays parental leave and other employee rights and benefits in accordance with the measures. positions in accordance with the measures.72 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 73
Help employees in needs Joyful and colorful life
We organize diversified cultural and sports activities such as badminton tournaments staff sports games work-break exercises
performance and holiday theme activities to promote balance between employees' work and life we enhance cohesion of our
organization and improve employees' sense of well-being.Subsidy issuance Love Fund Employment assistance Visits
Implement a care and Set up the "Love Fund" Coordinate employment Continue to carry out
concern system by carrying special assistance initiative assistance for family members investigation and visits to
out annual hardship grant to provide a channel for of employees in difficulty employees in difficulty. By the
evaluation and a total of employees in difficulty to to relieve the employees in end of the Reporting Period a
RMB306000 was issued apply for funds. During 2022 difficulty of living pressure total of 2055 employees were
611 employees applied for visited and relief materials
the fund amounting to about amounting to RMB1812000
RMB1725700 were issued
Women care
We sign and implement the Special Collective Contract for the Protection of Special Rights and Interests of Female Employees
to protect the rights and interests of female employees in terms of salary rest and leave. We set up leaves for antenatal care and Employees'
maintain exclusive communication channels for female employees such as the "agony aunt" e-mail box information sharing group activities
for psychological guidance during pregnancy and childbirth. In addition we established "Home for Female Employees" and add
new parking spaces and special channels for pregnant women. We provide special labor protection supplies for female employees
purchase health insurance and organize health checks for female employees such as cervical cancer and breast cancer screenings
to provide practical assistance to female employees.Case Competition fosters a brighter future: staff sports games
From August to November 2022 Kweichow Moutai involved in organizing the 2022 Annual Staff Sports Games. A total of 31 major
events and 106 minor events were held covering traditional competitive sports such as basketball soccer table tennis and
badminton as well as innovative mass sports such as 1000-people work-break exercises performance fitness dance air volleyball
Kabaddi and caterpillar racing. These events fully demonstrated Moutai's openness and vitality in this great era.Democratic management Case Charming Moutai: A Liquor of Ceremonies: Manner and etiquette contest
We continue to improve the Management Measures of Factory Affairs Disclosure sign the Collective Wage Negotiation Agreement
the Special Collective Contract on Occupational Safety and Health and the Special Agreement on Labor Protection for Employees On the 112th International Women's Day Kweichow Moutai participated in the manner and etiquette contest themed "Charming
at each annual staff representative assembly to protect employees' rights to information participation and supervision. We Moutai: A Liquor of Ceremonies". Through this contest we further inherit and carry forward the culture of liquor etiquette improve
make full use of diversified channels such as chairman's through train symposium visit and research suggestion box colleague the etiquette of Moutai employees and fully show the charm of female employees. In this way we can build a corporate image and
bar and online questionnaire to learn about employees' opinions suggestions and demands for rights and interests and vision marked by beauty.promote democratic communication and consultation. In 2022 more than 300 staff suggestions were collected through the staff
representative assembly and incorporated into rationalized suggestions for management improvement.74 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 75
Employee training Employee training
and development The Company takes an active role in facilitating employees' career development analyzes and identifies training needs and formulates annual Training system training plans according to corporate strategies and human resource planning combined with performance evaluation results and departmental
Kweichow Moutai attaches great To further improve the employee training management system the Company goals and tasks. We provide classified and graded training by means of special lectures seminars and exchanges project-based system
importance to staff education and formulate the "14th Five-Year Plan" for Talent Development and the Employee mentorship teacher-apprentice job training network training and skill competitions to enhance the professional abilities of our employees.training. As such we integrate internal Education and Training Management System. Focusing on the entire chain of
and external high-quality resources attracting cultivating employing and retaining talents we make great efforts to
and improve the training management implement the "four projects" for talents optimize the "eight steps to cultivate Enrich teaching and learning resources Optimize course system resources
system to constantly improve the craftsmen" system and the "four training programs" and provide strong support for Partner with a number of institutions of higher learning such Provide employees with sufficient course resources for
professional skills and overall quality of the growth and development of employees with high-level talent management and as Peking University Tsinghua University Shanghai Jiao Tong strategic decision-making corporate culture business
employees and build a new pattern of targeted talent programs. University Zhejiang University Xiamen University University of knowledge safety know-how behavior training laws and
talent training. International Business and Economics as well as professional regulations executive ability professionalism etc.scientific research institutions training institutions and
management experts
"Eight steps to cultivate Diversify training and development methods Build learning support platform
"Four projects" for talent "Four plans" for talent
craftsmen" talent
development training Provide employees with targeted training in diverse forms Establish Moutai staff training school and Moutai online
cultivation system such as job rotation master-apprentice mentor training on- learning platform to integrate internal and external high-
the-job training online lectures cadre attachment leadership quality resources and build Moutai's talent training base
●?Project of "nest building for ●?Induction training - "Into the ●?"Chief Plan" for leading talents: training camps etc.attracting phoenixes": Introduce furnace" Cultivate a group of chief experts
outstanding talents Job training - "Scalping" in key areas such as science and ●?
technology blending tasting and
●?Project of "seedling breeding":
●?Skill recognition - "Smelting"
Cultivate talents meticulously brewing Case Baijiu appraiser specialized training
●?Master-apprentice - "Hammering" ●?
Project of "fission for efficiency": "Inheritance Plan" for brewing ●?
Utilize talents precisely Backbone cultivation - "Refining" talents: Cultivate highly skilled ●? Kweichow Moutai continues to strengthen the systematic cultivation
brewing talents to inherit liquor of liquor appraiser and attract talents to build a dynamic team for
●?Project of "devoted service": ●?Excellent shift (team) leader - culture reserved liquor appraiser. In 2022 the company conducted two
Retain qualified talents "Quenching"
●?"Outstanding Youth Plan" for phases of specialized training for liquor appraiser from April to August
●?Moutai craftsman - "Sublimation" young talents: Cultivate young and from September to October and selected candidates for the
talents with high potential first session of the third phase in December. In a total of 8 training ●?Technical positions - "Hardened
in finance accounting law and selection sessions of 3 phases covering 3200 participants were into steel"
natural science or engineering completed in 2022 accelerated the development of our appraiser
technology training system and enhanced the company's appraiser reservation. Baijiu appraiser specialized training
●?"Elite Plan" for business
management talents: Foster a
group of business management
talents with global strategic vision Case Diversified law popularization training for employees
market expansion capability In 2022
management innovation ability
and social responsibility Kweichow Moutai has continued to promote law popularization education in an
institutionalized normalized and diversified form to further enhance employees' sense of Employee training ratio
law. In 2022 the Company organized 22 training sessions on Law popularization issued 2000
brochures on the Civil Code and 12000 brochures on law popularization and invited external
%
legal experts to give 2 specialized lectures. We organized middle-level managers and above to 100
take online law exams and support general employee to attend an award-winning quiz about
civil code on the WeChat Official Account of "Qianwei Pufa". Over 10000 employees have Average training hours per employee
obtained the certificate. 42hours76 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 77
Gather the power of goodwill
Talent incentives Kweichow Moutai deeply assumes its "Big Brands Big Responsibilities" concept and actively participates in social welfare
undertakings. We pay attention to the needs of the community and people for a better life drive the prosperity of the community
With the goal of "building one of the most attractive and cohesive talent highland in the liquor industry" the Company continues with our development and share the fruits of development with the community.to improve its talent incentive mechanism. By formulating and publishing the Management Measures for Supporting Employees'
On-the-job Studying for master's degrees and Above Upgrading Professional and Technical Titles and Vocational Skill Levels we
encourage employees to obtain on-the-job academic degrees and upgrade their professional and technical titles. We also provide
tuition fees for employees who study on the job and obtain a graduate degree or higher and take multiple measures to improve Education public welfare undertakings
the overall quality of our employees.Kweichow Moutai explores effective ways to constantly
integrate ideological leadership and public welfare
Talent incentives undertakings. Partnering with China Youth Development
Foundation and provincial youth foundations we have carried
out the project "China Moutai & Backbone of the Nation" for
Material incentives Recognition incentives Value realization 11 consecutive years. By doing so we help students in need
●?Set up individual awards and ●?Arrange for rehabilitation to make their way from home to university so that they can ●?
bonuses such as Outstanding Make reasonable use of activities for model workers grow up to be constructive professionals in various fields and
Talent Award and Moutai Model employees' research results and award-winning employees pursue their dreams. As of the end of the Reporting Period
Worker adopt their constructive at all levels "China Moutai & Backbone of the Nation" project has donated suggestions and provide more than RMB1.1 billion providing targeted financial support
●?Set up mass awards and them with counterpart job ●?Set up organizational awards to over 210000 students. "China Moutai & Backbone of the Nation" charity activity
bonuses such as Management suggestionssuch as Excellent Innovation
Innovation Achievement Award Studio and Quality Trustworthy ●?
and Excellent QC Team Award Set up career development Shift/Team paths such as technical tutors Bring together the power of public welfare
●?Formulate tuition and village cadres●?Circulate a notice of While pursuing development Kweichow Moutai implemented social responsibility into the strategy and operation management
reimbursement policy for in- commendation and award of the Company and pass on our belief in goodness to the public. Together with our distributors we have established the "Moutai
service postgraduate studies employees with significant Prince - Bright Youth" charity fund the "Guizhou Daqu - Dews of Love" special fund and the "Jiang of Han - Craftsmanship
and above contributions Heritage" heritage protection charity fund. We also advocate our sub-brands to set up the HuaMao Baijiu "A Trip to Guizhou to
Pursue the Three Virtues" charity fund the "Laymau - Love and Growth with Badminton" juvenile badminton development charity
●?Formulate incentive policies fund and the "WangMao - Star Project" charity fund.for professional and technical
titles and vocational skill level
salaries Care for left-behind children - "Moutai Prince - Bright Youth" charity fund
We care for left-behind children in rural areas helps build up rural teaching resources
in Guizhou and safeguards the mental health of children in relocation sites. During
the Reporting Period "Moutai Prince - Bright Youth" charity fund devoted RMB8
Talent promotion million and launched the "Project Hope - Accompanying Action" "Seedling Support
Project" "Star Project" "A 100-Year Trip for Youth Care" and "Sowing Dreams By
The Company continues to improve the employee growth and ranks have clear promotion and development paths. For Making Every Voice Heard" public welfare projects. All these efforts are aimed
system by building a promotion channel featuring two- brewing talents we set up the production position channel at broadening the horizons of rural children boosting their self-confidence and
way support and balance between technology and skills which includes five sequences (liquor-making yeast-making enabling them to grow up healthily and happily in a warm society. "Moutai Prince - Bright Youth" charity
management and titles so as to select and cultivate more blending tasting and scientific research) and five ranks (chief activity
outstanding talents and build a high-quality craftsman team. special level-1 level-2 and level-3); for technical talents we
The Company formulates the Management Measures for the set up the technical position channel with five ranks (chief "Moutai Prince - Bright Youth": Introducing cheerleading gymnastics to schools to Case
Evaluation of Professional and Technical Personnel Titles researcher special researcher chief engineer deputy chief facilitate full integration of sports and education
the Management Measures for the Appointment of Technical engineer and technical supervisor); and for management
Positions of Moutai Brewing Series and the Management talents we set up the management position channel with four In November 2022 at the National Fitness Complex of Guizhou Province we held the launch ceremony of the public welfare program
Measures for the Evaluation of Qualifications for Technical ranks (chief at middle level deputy at middle level chief at of "Moutai Prince - Bright Youth": Introducing cheerleading gymnastics to schools to facilitate full integration of sports and education.Positions of Moutai Brewing Series to provide employees with section level and deputy at section level). According to these The "Moutai Prince - Bright Youth" charity fund has always been committed to helping juveniles grow up healthily and sponsors a
three promotion channels. Specifically they can choose to measures we clarify the procedures of grade evaluation series of campus training and major classroom activities in many places across China with over 1000 teachers and 5000 students
be brewing talents technical talents or management talents. appointment and assessment and expand the career from primary and secondary school participating in them. It contributes to the organic combination and optimal allocation of sports
In this way we ensure that employees of different positions development space for talents in various fields. and education resources the cultivation of sports and education reserve talents and the development of special programs.78 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 79
Care and respect for the elderly - "Guizhou Daqu - Dews of Love" charity fund
We continue to devote ourselves to the
cause of caring respecting and supporting
the elderly. During the Reporting Period
the special fund of "Guizhou Daqu - Dews
of Love" built 25 service stations for the
elderly. In addition we launched 10 projects In 2022
to compile "village histories" in Guizhou Contribute to rural Rural vitalization consumption
Province and supported the building of a assistance amount：
comprehensive senior activity center "Elderly revitalization
Home" in Henan Province. By doing so we
enriched and improved the life of the elderly Making full use of our resources we promote paired assistance RMB63960500
and protect traditional villages. "Guizhou Daqu - Dews of Love" series of public welfare projects efforts and implement the "one village one program" rural
revitalization work plan. We support rural economic construction Rural vitalization population coverage
and the development of science education culture and health
Cultural relics protection - "Jiang of Han - Craftsmanship Heritage" charity fund undertakings by concentrating our strengths so as to drive
We value the protection of cultural relics and Guizhou's rural revitalization and development to a new level. 37483
history and contribute to the preservation of
China's cultural relics. During the Reporting
Period the "Jiang of Han - Craftsmanship
Heritage" charity fund held the Yinxu Public All-round support for rural industries
Welfare Relics Restoration Exhibition in
Anyang in July 2022. Through this project
we contributed our share to the preservation Industrial revitalization
and inheritance of cultural relics and the
protection of national cultural heritage. Kweichow Moutai organically combine industrial development with rural revitalization and implement rural revitalization work plan
based on local conditions. We boost rural industrial revitalization by creating organic raw material and edible mushroom industries
Yinxu Public Welfare Relics Restoration Exhibition of "Jiang of Han - Craftsmanship and developing cultural tourism with rural characteristics. All these efforts provide solid support for rural residents' income growth.Heritage" charity fund
In 2022 Promote raw material industry
Employ the resources of the liquor industry to implement the "company + government + platform company + cooperatives
225431100 and farmers" sorghum base management model; support the construction of Moutai's sorghum demonstration base; and Public charity donation amount RMB improve the standard of raw material cultivation by providing free seeds green and organic fertilizers to farmers of raw
material bases offering agricultural technical guidance and training on sorghum cultivation and increasing investment in
Donation to China Youth "China Moutai & Backbone of the organic crop certification.Development Foundation： Nation"project sponsored students：
RMB100000000 16000 Create an edible mushroom industry
Leverage the positioning of "county of vegetable and mushroom" of Daozhen Klau and Hmong Autonomous County
Moutai's management advantages and agricultural expert resources; take measures such as assigning first secretaries in
"Moutai Prince - Bright Youth" "Guizhou Daqu – Dews of Love" villages and assistance team members encouraging distributors to fund the construction of mushroom sticks maturation
public welfare fund donation： public welfare fund donation： cultivation rooms; activate the endogenous power of rural revitalization and jointly support the development of edible
RMB24616200 RMB8946100 mushroom industry in Daozhen."Jiang of Han - Craftsmanship Heritage" "Laymau - Love and Growth with Develop cultural tourism with rural characteristics
public welfare fund donation： Badminton" Children's Badminton Participated in the construction of revolutionary and beautiful villages in Chishui City and Bozhou District and leading
rural revitalization demonstration counties in Meitan. The Company jointly build revolutionary training bases with
RMB8687300 Development Fund donation: distributors organize grass-roots Party organizations to carry out training and group-building activities in Meitan and 4730000 Chishui so as to boost the revolutionary cultural tourism industry.RMB80 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 81
Fulfill responsibilities
While pursuing high-quality development Kweichow Moutai pays high attention to and actively responds to social needs.Leveraging our leading role in the industry chain we encourage systematic and sustainable charitable behaviors of distributors
and combine resources of multiple enterprises to jointly contribute to social affairs which includes disaster relief elderly support
care for children and ecology protection. Through these practical actions we promote the transmission of social values.Case Support earthquake relief efforts for Luding
In September 2022 a 6.8-magnitude earthquake hit Luding County Garzê Tibetan Autonomous Prefecture Sichuan Province
causing heavy casualties and property damage . Kweichow Moutai responded immediately by donating RMB15 million to the
victims of the earthquake in Luding through the Sichuan branch of Red Cross Society of China (RCSC) to support rescue and relief
efforts and flood control and help people in the affected areas to resume their normal lives as soon as possible. Through practical
actions we demonstrated the "humanity fraternity and devotion" spirit of the Red Cross Society and our role as a responsible
corporate.Case On the move for rescue and disaster relief
Diversified support Utilizing our firefighting resources Kweichow Moutai teams up with firefighters forest public security officers to search and rescue
centers to engage in social rescue in the surrounding area and safeguard the safety of the residents. In August 2022 when a forest
We take active steps to promote rural revitalization through consumer support and sales of agricultural and sideline products fire broke out in Tiantai Mountain Chishui City the Company responded quickly and dispatched 5 fire engines and 45 firefighters
through channel expansion. Partnering with Renhuai City's guaranteed supply vegetable bases we increase the purchase of for rescue actions saving the community from losses of RMB132 million and earning praise from governments at all levels local
agricultural and sideline products in Daozhen County and Renhuai City based on the "farmer + guaranteed supply base (cooperative) enterprises and residents.+ canteen" model. Meanwhile we bridge the Company's stakeholders and the producers of agricultural products by mobilizing
employees and distributors to purchase. In this way we expand sales channels for farmers and provide local employment
opportunities for rural residents.Case Dancing for a Healthy Life: Supporting public welfare sports programs
Cultivation of rural talents
In December 2022 the 5th Moutai Prince Cup National Square Dance Competition and the 6th Moutai Prince Cup Guizhou Province
Kweichow Moutai adheres to the idea of increasing people's confidence and helping them acquire knowledge and skills for rural Square Dance Competition (Bijie Station) came to a successful conclusion. Since 2016 Kweichow Moutai Jiang-flavor (Moutai-flavor)
revitalization and stimulates the endogenous driver of rural revitalization by cultivating rural revitalization talents building rural Baijiu Sales Co. Ltd. has continuously supported the square dance competition with title sponsorship promoting the introduction
technical training teams and offering employment support to rural talents. of sports and fitness into daily life and boosting the in-depth integration of national fitness and national health. The competition is
also a platform for employees to strengthen their bodies and showcase their style.Academic support Talent support Technical training Employment support
Provide funding on Explore a new path Conduct skill training Coordinate
a four-year cycle of talent training on special agricultural recruitment needs
for 1500 college by assigning cadres planting techniques. to recruit college
students to study in to each other with A total of 9 sessions students in key areas
majors that are in Chishui City and of technical training of rural revitalization
urgent need for rural dispatch 14 excellent have been conducted who meet the
revitalization cadres for year-round in the regions qualification
on-site support assisted and 97 requirements
technical talents have Kweichow Moutai staff
been trained volunteers carry out children
care activity82 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 83
GRI Standards Content Index
Outlook This report has been compiled with reference to the GRI standard using GRI 1 as GRI 1: Base 2021.Disclosure title Page Disclosure title Page
"Pooling the strength and will to shoulder GRI 2: General Disclosures 2021 203-2 Significant indirect economic impacts P79-P80
responsibility and striving vigorously to draw a new 2-1 Organizational details P6 GRI 204: Procurement Practices 2016
chapter." 2023 marks the opening year for fully 2-2 Entities included in the organization's sustainability reporting P7 3-3 Management of material topics P46-48
implementing the spirit of the 20th CPC National 2-3 Reporting period frequency and contact point P1 GRI 205: Anti-corruption 2016
Congress and it is also a critical year for the "14th 2-6 Activities value chain and other business relationships P46-P51 P19-P20;
Five- Year Plan". Facing the overlapping periods 2-7 Employees P70-P71 3-3 Management of material topics P23-P24
of new order reshaping new pattern formation 2-9 Governance structure and composition P16 205-1 Operations assessed for risks related to corruption P19; P23
and new reform efforts Kweichow Moutai will 2-10 Nomination and selection of the highest governance body P17 Communication and training about anti-corruption policies
adhere to the guidance of Xi Jinping Thought on 2-11 Chair of the highest governance body P4-P5 205-2 and procedures P19; P23
Socialism with Chinese Characteristics for a New
2-12 Role of the highest governance body in overseeing the Era and implement the development philosophies management of impacts P16
GRI 206: Anti-competitive Behavior 2016
3-3 Management of material topics P24
of innovation coordination green openness 2-13 Delegation of responsibility for managing impacts P11
Environment
and sharing. Keeping pace with the national
2-14 Role of the highest governance body in sustainability P11
development advancement of era and needs of reporting GRI 301: Materials 2016
the people we will firmly pursue the greatness 2-16 Communication of critical concerns P13 3-3 Management of material topics P61
with rock-solid determination spare no efforts 2-17 Collective knowledge of the highest governance body P11 301-2 Recycled input materials used P61
to realize a wonderful life and strive to embrace
2-18 Evaluation of the performance of the highest governance
301-3 Reclaimed products and their packaging materials P61
a bright future with high quality and strong body P16 GRI 302: Energy 2016
industry. We will write a new chapter of Moutai's 2-19 Remuneration policies P18 3-3 Management of material topics P57-P58
high-quality development and modernization 2-20 Process to determine remuneration P18 302-1 Energy consumption within the organization P58
construction together! 2-22 Statement on sustainable development strategy P11 302-3 Energy intensity P58
2-25 Processes to remediate negative impacts P24
302-4 Reduction of energy consumption P58
2-26 Mechanisms for seeking advice and raising concerns P12-P13
302-5 Reductions in energy requirements of products and services P58
P19-P20;
2-27 Compliance with laws and regulations GRI 303: Water and Effluents 2018
P23-P24
2-28 Membership associations P51 3-3 Management of material topics P59-P60
2-29 Approach to stakeholder engagement P13 303-1 Interactions with water as a shared resource P59
2-30 Collective bargaining agreements P72 303-2 Management of water discharge-related impacts P60
GRI 3: Material Topics 2021 303-3 Water withdrawal P59
3-1 Process to determine material topics P12 303-4 Water discharge P60
3-2 List of material topics P12 303-5 Water consumption P60
3-3 Management of material topics P12 GRI 304: Biodiversity 2016
Economy 3-3 Management of material topics P64-P67
GRI 201: Economic Performance 2016 Operational sites owned leased managed in or adjacent to
3-3 Management of material topics P16-P25 304-1 protected areas and areas of high biodiversity value outside P65
201-1 Direct economic value generated and distributed P8-P9 protected areas
201-2 Financial implications and other risks and opportunities due 304-2
Significant impacts of activities products and services on
to climate change P56 biodiversity
P66
201-3 Defined benefit plan obligations and other retirement plans P70-P71 304-3 Habitats protected or restored P65; P67
GRI 203: Indirect Economic Impacts 2016 GRI 305: Emissions 2016
3-3 Management of material topics P79 3-3 Management of material topics P62
203-1 Infrastructure investments and services supported P79-P80 305-5 Reduction of GHG emissions P5884 KWEICHOW MOUTAI CO. LTD. 2022 Environmental Social and Governance Report 85
Feedback
Disclosure title Page Disclosure title Page Dear readers
305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other 403-9 Work-related injuries P35significant air emissions P62 Thank you very much for reading the Kweichow Moutai 2022 ESG report during your
GRI 306: Waste 2020 403-10 Work-related ill health P34-P35 busy schedule. Your comments and suggestions on this report are highly appreciated
3-3 Management of material topics P63 GRI 404: Training and Education 2016 for us to improve the quality and level of the report and our ESG efforts!
306-1 Waste generation and significant waste-related impacts P63 3-3 Management of material topics P74
306-2 Management of significant waste-related impacts P63 404-1 Average hours of training per year per employee P75
306-3 Waste generated P63 Programs for upgrading employee skills and transition Tel.: 0851-22386480404-2 74-P75
assistance programs
306-4 Waste diverted from disposal P63
Percentage of employees receiving regular performance E-mail: mtshzr@moutai.com.cn
404-3 P76
306-5 Waste directed to disposal P63 and career development reviews
Address: Corporate Culture Department of Kweichow Moutai
GRI 308: Supplier Environmental Assessment 2016 GRI 405: Diversity and Equal Opportunity 2016 (Convergence Media Center) Maotai Town Renhuai City
3-3 Management of material topics P46-48; P61 3-3 Management of material topics P70 Guizhou Province
Negative environmental impacts in the supply chain
308-2 P48; P61 405-1 Diversity of governance bodies and employees P17;P70 Post code: 564501
and actions taken
Society GRI 406: Non-discrimination 2016
GRI 401: Employment 2016 3-3 Management of material topics P70 Your information
3-3 Management of material topics P70-P71 406-1 Incidents of discrimination and corrective actions taken P70
Name: Tel.:
401-1 New employee hires and employee turnover P71 GRI 407: Freedom of Association and Collective Bargaining 2016
Benefits provided to full-time employees that are not
401-2 P70; P72 3-3 Management of material topics P72 Employer: E-mail：
provided to temporary or part-time employees
GRI 408: Child Labor 2016
401-3 Parental leave P72 Your overall rating of this reports is
GRI 402: Labor/Management Relations 2016 3-3 Management of material topics P70 □ Excellent □ Good □ Fair
3-3 Management of material topics P70 GRI 409: Forced or Compulsory Labor 2016
How well do you think this report reflects the Company's significant economic social and
GRI 403: Occupational Health and Safety 2018 3-3 Management of material topics P70 environmental impact
3-3 Management of material topics P33-P35 GRI 413: Local Communities 2016 □ Well □ General □ No idea
403-1 Occupational health and safety management system P34 3-3 Management of material topics P79-P80
How clear accurate and complete do you think the information data and indicators disclosed in
Hazard identification risk assessment and incident
403-2 P33-P34 Operations with local community engagement impact 413-1 P79-P80 this reportinvestigation assessments and development programs
403-3 Occupational health services P34 □ Very good □ Good □ Fair □ Bad □ Very badGRI 416: Customer Health and Safety 2016
Worker participation consultation and communication
403-4 P34 3-3 Management of material topics P30-P32 Which aspect of this report are you most satisfied with?
on occupational health and safety
Incidents of non-compliance concerning the health and
403-5 Worker training on occupational health and safety P34-P35 416-2 P44
safety impacts of products and services
403-6 Promotion of worker health P34-P35 GRI 417: Marketing and Labeling 2016 What information would you like to know more about?
Prevention and mitigation of occupational health and
403-7 P34-P35
safety impacts directly linked by business relationships 3-3 Management of material topics P45
Workers covered by an occupational health and safety Requirements for product and service information and
403-8 P34-P35 417-1 P45 What are your suggestions for our future reports?
management system labeling86 KWEICHOW MOUTAI CO. LTD.