重庆啤酒:重庆啤酒股份有限公司2022年环境、社会和公司治理报告（英文版）

Chongqing Brewery Environmental Social & Governance (ESG) Report Six TTZAB Ambitions 1
Chongqing Brewery Co.Ltd.（600132.SH）
ENVIRONMENTAL SOCIAL
& GOVERNANCE REPORT
2022Chongqing Brewery Environmental Social & Governance (ESG) Report Six TTZAB Ambitions 01
ABOUT THE REPORT TABLE OF CONTENTS
This report represents inaugural Environmental purpose of our ESG disclosure only and not for ABOUT THE REPORT 0 1 KEY FOCUS AREAS 42
Social and Governance ("ESG") report of Chongqing commercial purposes.Brewery Co. Ltd. Its primary purpose is to present EMISSIONS MANAGEMENT 43
our ESG policies management practices and References Used in the Report PRESIDENT’S MESSAGE 02
performance to stakeholders providing a more For the convenience of expression and reading PRODUCTS AND SERVICES 46
comprehensive understanding of our ESG efforts. "Chongqing Brewery" "the Company" and "We" in
Time Span the report all refer to "Chongqing Brewery Co. Ltd."
ABOUT US 03 DIVERSITY EQUITY & INCLUSION 50
while "the Carlsberg Group" and "the Group" refers to RESPONSIBLE SOURCING 59
The report covers the period from 1 January 2022 "Carlsberg A/S.". COMPANY PROFILE 03
to 31 December 2022 ("2022" "reporting period" COMMUNITY ENGAGEMENT 60
and "this year"). To ensure the continuity and Disclaimer TITLES AND HONOURS 04
comparability of ESG reports certain data and COMPLIANCE MANAGEMENT 6 1 Please note that some parts of this report are ESG PROGRAMMES 06
information are backdated or forwarded to other forward-looking including plans goals etc for future
significant years when appropriate. development. Such content is based on the current ESG HIGHLIGHTS 0 7 APPENDIX 65
Scope of Reporting expectations of the management which may be
subject to uncertainties that could cause it to differ ESG GOVERNANCE 09 THIRD-PARTY COMMENT 65
The subject of this report is Chongqing Brewery Co. materially from actual results. The Company does
Ltd. (Stock Code: 600132) unless otherwise stated. STAKEHOLDER ENGAGEMENTnot undertake the obligation to update any forward- 10 SHANGHAI STOCK EXCHANGE ESG 66
The disclosure standards it follows are consistent looking statements in this report. INDEXMATERIALITY MATRIX 1 1
with our annual report.Report Accessibility CONTRIBUTING TO THE UN 67
Basis of Preparation SUSTAINABLE DEVELOPMENT GOALS
This report is available in Simplified Chinese and
In preparing this report we referred to the Guidance English for readers' reference. In the event of any SIX TTZAB AMBITIONS 12 ESG KPIS 72
No. 1 for Application of Self-Regulation Rules for minor discrepancies between the two versions the
Listed Companies of Shanghai Stock Exchange Chinese version shall prevail. The report in pdf. is ZERO Carbon Footprint 1 3
- Standardized Operation and the Guidelines on accessible on our official website (https://www.ZERO Farming Footprint 20
Environmental Information Disclosure of Listed carlsbergchina.com.cn).Companies of Shanghai Stock Exchange. We also ZERO Packaging Waste 23
took into account the suggestions of the UN SDGs.ZERO Water Waste 26
Source of Data
ZERO Irresponsible Drinking 3 1
All information cited in this report is from
Chongqing Brewery Co. Ltd.'s official documents
ZERO Accidents Culture 36
statistical reports and financial reports. The
information presented in this report is for theChongqing Brewery Environmental Social & Governance Report PRESIDENT’S MESSAGE 02
PRESIDENT’S MESSAGE
Thank you for taking the time to read the 2022 strategy with a solid performance! SAIL’22 strategy and the TTZ programme but
Environmental Social and Governance (ESG) Just like our business performance our ESG also the start of our new SAIL’27 strategy for
report of Chongqing Brewery Company Limited performance is also encouraging. Since 2016 2027. As an integral part of SAIL’27 we have
which is our first ESG report. we have been implementing our TTZ (Together launched an ESG programme named TTZAB
Towards ZERO) sustainability plan in China. (Together Towards ZERO and Beyond). While
Since our listing in 1997 you may have been Like the SAIL’22 strategy TTZ was also aimed upgrading the existing four ZERO ambitions
accustomed to reading our financial reports for at 2022. It incorporates a series of measurable TTZAB adds two new ambitions ZERO
visibility into our business performance. From scientific indicators around ZERO Carbon Packaging Waste and ZERO Farming Footprint.today we provide you with a new channel to Footprint ZERO Water Waste ZERO Accidents It also outlines a clear roadmap for addressing
understand our ESG performance as well. We Culture and ZERO Irresponsible Drinking. As of material ESG issues and sets specific milestones
firmly believe that for a company business the end of 2022 we had successfully surpassed for 2030 and 2040.performance and ESG performance go hand all the targets set out in TTZ. Through such
in hand and one can not be achieved without means as using 100% renewable energy and As you will see in this Report the TTZAB plan
the other. While delivering short-term financial improving the comprehensive energy efficiency of has challenging targets such as achieving a
returns we must ensure the sustainability of thermal power the carbon dioxide emissions per net ZERO value chain by 2040 i.e. a balance
our business in the long term to live up to 100 litres of beer brewed in our breweries have between CO2 emissions and removals. It is one
our purpose: brewing for a better today and decreased by 75% compared to 2015 equivalent of the most ambitious carbon reduction targets
tomorrow. to more than 80000 cars being off the road for in the global beer industry. However we are
a year. At the same time the water consumption very confident that by implementing the TTZAB
This has been proven in practice in the past few per 100 litres of beer has decreased by 42% plan we will not only further improve our level
years. compared to 2015. The water consumption of the of environmental protection social responsibility
Dazhulin brewery in Chongqing is even lower and corporate governance but also help the
Lee Chee Kong Since 2014 the Chinese beer market has been achieving a world-leading level of 1.77hl/hl.. company to set out on SAIL’27 and its new
continuously declining. However against industry journey of high-quality development.President headwinds the Company has grown into the We believe that it is our commitment and
fourth-largest beer company in China and continuous investment in ESG that have equipped Therefore we have decided to release the ESG
embarked on a high-quality development path us with greater resilience to navigate the storm report of Chongqing Brewery Company so as
by effectively implementing SAIL’22 the company and emerge at full sail in a turbulent market to update you about our ESG plans goals and
strategy for 2022 and meeting consumers' environment. Accordingly our strong performance progress in a regular and systematic way. Thank
growing demand for high-quality beer. has also empowered us to take further action in you for your interest and we look forward to your
Particularly in the last three years which has pursuit of better ESG performance and to make feedback!
CHINA been extremely difficult we are the only Chinese our contribution to addressing the common
beer company that has achieved sustained sustainability challenges facing humanity.growth in sales revenue and profits. We proudly
achieved a successful conclusion to our SAIL'22 2022 marked not only the successful end of theChongqing Brewery Environmental Social & Governance Report COMPANY PROFILE 03
ABOUT US
COMPANY PROFILE
Based in China Chongqing Brewery Co. Ltd. supply network consisting of 26 breweries 14.039 billion and RMB 1.264 billion. and Beyond (TTZAB) programme initiated by the
(600132.SH) is a subsidiary of Carlsberg Group and a marketing and sales network spanning China has become the Group's largest market Group. We are dedicated to achieving the ZERO
the third largest brewer in the world. Carlsberg China's provinces and municipalities. Responding globally. In the Group's SAIL'27 strategy "Keep Carbon Footprint ZERO Water Waste ZERO
Group headquartered in Copenhagen Denmark promptly to market changes we have recently Winning in China" is listed as one of the strategic Farming Footprint ZERO Packaging Waste
was founded in 1847 and has over 140 beer achieved a business performance significantly priorities. This priority demonstrates our ambition ZERO Irresponsible Drinking ZERO Accidents
brands that are sold in more than 150 markets above the industry average. We have gained of being the most successful professional Culture while adhering to our Corporate principle
worldwide. comprehensive and continuous growth in all three and attractive brewer in China. We are also of brewing for a better today and tomorrow.major indicators of sales revenue and profit. In committed to addressing global challenges such
Chongqing Brewery is the fourth largest brewery 2022 our respective sales revenue and profit as inequality climate change and water scarcity
company in China operates a production and were 2.8566 million kilolitres of brews RMB by implementing the Together Towards ZERO
OUR PRODUCT PORTFOLIO
Local power brands + International premium brandsChongqing Brewery Environmental Social & Governance Report 2022 AWARDS AND HONOURS 04
2022 AWARDS AND HONOURS
Listed in "Top 100 Chongqing Companies" and "Top 100 Ranked 310th in the list of "Top 500 Largest Chinese "Special Award of the Year" at the 10th Top Digital
Chongqing Manufacturers" once again ranking first among Companies by Market Cap" up 18 places from the end of last Innovation Marketing Awards for "Vigorous Tiger Starting
food & beverage companies year and ranked 4th among beer companies Auspicious New Year" a creative communication programme the
Company created for the 2022 Spring Festival which integrated
Carlsberg (China) Beer Industry and Trade Co. Ltd. ranked 7th and art culture and marketingThe "Best Board of Directors Award for Investor Relations
5th in "Top 100 Non-public Enterprises of Yunnan Province" and for Chinese Listed Companies" and the "Best Investor
"Top 20 Non-public Enterprises in the Manufacturing Industry of Relations Award for Chinese Listed Companies" of the 13th "WUSU x XCMG Hard-from-the-core Celebration Campaign" won
Yunnan Province" up 5 and 2 places respectively from 2021 Tianma Award for Investor Relations of Chinese Listed Companies "Seasonal Marketing Product Category Award" of 2022
EFFIE Awards Greater China
Carlsberg (China) Beer Industry and Trade Co. Ltd. listed as a
"Top 10 Green Food Enterprises" in Yunnan Province for five Award of "Annual Outstanding Management Team of Listed
consecutive years Companies in China" and award of "Top 100 Main Board "WUSU x XCMG Hard-from-the-core Celebration Campaign" won
Listed Company Value" of the 16th Awards of the Value of the 9th TMA Marketing Awards "Gold Award in Cross-
Carlsberg (China) Beer Industry and Trade Co. Ltd. won the Listed Companies in China border Marketing"
title of National "Water Efficiency Leader"
The "Strategic Restructuring of Carlsberg and Chongqing "WFSM beer suitcase event" won the "Gold Award for New
Dazhulin Brewery and Liangping Brewery won the title of Brewery" selected as "a classic case of cross-border M&As
Consumer Marketing" of 22th IAI AWARDS
Chongqing "Water Efficiency Leader" in China's capital market" by China Association for Public
Companies
SOMERSBY Blackberry won "Youyisi Lifestyle Brand" of
Tianmuhu Brewery won the title of "Green Development China News Weekly
Carlsberg (China) Beer Industry and Trade Co. Ltd. listed as one of
Leader" of Jiangsu Province
"China's Top 500 Agricultural Enterprises in 2022"
Tianmuhu Brewery won the title of "Four-star Enterprise" in
Liyang for three consecutive years Included in Hurun China "Food Industry Top 100" again
Huashi Brewery won the title of "Enterprise with Outstanding
Contribution" of Central Yunnan New District Yunnan "2022 TOP 100 China Model Employers & Model of Talent
Province Attraction and Retention" by 51JOB
Anhui Brewery won the title of "Comprehensive Strength Top
10" of Tianchang "2022 Top 50 Best Employers in Guangzhou" by Zhaopin.com
"The Annual ESG Special Award" of Golden Bottle Awards
Yibin Brewery listed in "Top 100 Private Enterprise" of Yibin (GBA) 2022Chongqing Brewery Environmental Social & Governance Report 2022 AWARDS AND HONOURS 05
Our 11 products including Carlsberg Smooth Draught Brooklyn Lager Tuborg and Chongqing Pure Draft won the "Tianlu Award"
of the "China International Beer Challenge". We were the company with the most awards for the second consecutive year.Three products including Grimbergen Belgian Blond Ale Brooklyn Stonewall Inn IPA and Tuborg MIX Special Cranberry and Lime-Flavored Beer
won the "Green Drink Award" a national liquor award.Chongqing Brewery Environmental Social & Governance Report ESG PROGRAMMES 06
ESG PROGRAMMES
Purpose Brewing for a better today and tomorrow
SAIL'27 Our portfolio Our geographical Our execution Our winning Funding our Creating value for all
priorities choices priorities excellence culture journey our stakeholders
The Group launched the five-year clarified its targets for other focus
corporate strategy SAIL'22 in March areas such as water conservation ESG Together Towards ZERO and Beyond (TTZAB)
2016 and developed the Together responsible drinking diversity equality programme
Towards ZERO (TTZ) ESG programme and inclusion (DE&I) human rights and 2030 Targets 2040 Target
based on its strategic focus areas. As community engagement. ZERO ZERO carbon emissions at our breweries
the platform for the Group to operate Carbon 30% reduction in value chain carbon emissions
Net ZERO value chain
Footprint All renewable electricity must come from new assets
beer assets in China and the fourth Adhering to the purpose of the (e.g. via power purchase agreements)
largest brewery in China Chongqing Group Chongqing Brewery actively
2030 Targets 2040 Target
Brewery has made remarkable progress participates in promoting TTZAB ZERO
30% of our raw materials are from regenerative agricultural practices
in facilitating the implementation of programme and releases latest progress Farming 100% of our raw materials are from and are sustainably sourced
Footprint regenerative agricultural practices
TTZ in the country. in a timely manner. We also reinforce and are sustainably sourced
cooperation with stakeholders such
In 2022 the Group launched another as suppliers customers consumers ZERO 2030 Targets
five-year corporate strategy SAIL'27 and the communities where we Packaging 100% recyclable reusable or renewable packaging 50% recycled content in bottles and cans
which evolved from SAIL'22 and an operate manage our business impact Waste 90% collection and recycling rate for bottles and cans 50% reduction of virgin fossil-based plastic
enhanced ESG programme Together responsibly and take actions that
Towards ZERO and Beyond (TTZAB) make positive contributions to society. ZERO 2030 Targets
which released as a pillar supporting We are committed to brewing for a Water Water usage efficiency of 2.0 hl/hl in the Company and 1.7 hl/hl at breweries in high-risk areas
Waste 100% replenishment of water usage at breweries in high-risk areas the focus areas contained in SAIL'27. better today and tomorrow.Reduce total breweries water consumption by 50%
TTZAB builds on the original four
2030 Targets
ambitions ZERO Carbon Footprint ZERO 100% responsible drinking messaging through packaging and brand activations
ZERO Water Waste ZERO Irresponsible Irresponsible 100% of our markets run partnerships to support responsible consumption
Drinking and ZERO Accidents Culture Drinking 100% availability of alcohol-free brews
and adds two new ZERO Targets 35% of our beers from the Company are low-alcohol or alcohol-free
ZERO Farming Footprint and ZERO ZERO 2030 Targets
Packaging Waste which has expanded Accidents ZERO lost-time accidents
the ESG ambitions of the Group to Culture
new focus areas. Based on TTZAB
the Group has developed a roadmap Diversity Equity & Inclusion Focus on the continuous enhancement and implementation of policies partnerships and
to address material ESG topics and other initiatives to manage the impacts on our employees operations value chain and wider
Living By Our Compass society.has set new milestones towards 2030
Set additional targets that are quantified and shorter-term including 4% increase in the
and 2040 including a net ZERO value Human Rights proportion of women in senior leadership positions by 2024 ramping up to one-third by 2027.chain by 2040 where CO2 emissions Responsible Sourcing Continuously strive to Live By Our Compass and maintain a high-integrity culture through a
and removals are balanced. The Group robust compliance programme and source responsibly respect human rights along the value
Community Engagement chain and engage communities responsibly.has also upgraded its ambitions andChongqing Brewery Environmental Social & Governance Report ESG HIGHLIGHTS 07
ESG HIGHLIGHTS
ZERO ZERO ZERO
Carbon Irresponsible Packaging
Footprint Drinking Waste
-75% -32% 100% 0.0% 4.5 million+ -10% 3800t
in carbon emissions in comprehensive green electricity Availability of CQ AFB consumers covered by responsible bottle weight of Carlsberg paper reduced every year
per hl in 2022 energy consumption use and WFSM lemon- drinking initiatives throughout the Tuborg and Kronenbourg by carton weight reduction
compared to 2015 in 2022 compared to flavored LAB year 1664 project
2015
ZERO ZERO ZERO
Water Accidents Farming
Waste Culture Footprint
-42% 2.07 million kl 1.77 hl/hl 100% -92% 0 100% 190kt
in water consumption total water consumption lowest water of breweries and the in number of lost- employees and localized procurement of waste yeast recycled for
per hl in 2022 saved from 2015 to 2022 consumption for the Company certified ISO 45001 time accidents in contractors' main auxiliary materials cattle fodder
compared to 2015 Company's breweries Occupational Health and 2022 compared to fatalities in 2022
in 2022 Safety management systems 2018Chongqing Brewery Environmental Social & Governance Report ESG HIGHLIGHTS 08
ESG HIGHLIGHTS
Products and Services Community Engagement
100% Zero productrecalls 100% 98.2% RMB3.46million 100000
From 2018 to 2022 the From 2018 to 2022 We carried out quarterly In 2022 our breweries Since 2004 we initiated the student financial In 2022 "Chongqing Brewery Scholarship"
Company and its breweries the Company did not sampling inspections of 91 carried out a total of assistant campaign in Yibin City. We have provided funds to support Chongqing
have passed the Annual experience any incidents batches of beer products 210 00 hours of training donated a total of RMB 3.46 million to help Outstanding Youth League Work Brand
COM Compliance Audit and of product recalls due to from 24 breweries in 2022 covering around 18000 around 1800 students in Yibin for 19 Project. 100000 college students are
obtained certification for quality problems all of which passed with a person-times which consecutive years benefit from the scholarship
both the ISO 9001 quality 100% qualification rate accounted for 98.2% of
management system and the total workforce
HACCP from 2018 to 2022.Diversity Equity and Inclusion Corporate Governance
96% +2.1% 500+ 23 person-times
In the biennial employee engagement The percentage of female employees in In 2022 we held 4 public performance In 2022 we provided corporate governance
survey 96% of employees would middle-level and above management presentation meetings attended over 500 training sessions for our board of directors
recommend Chongqing Brewery as a positions increased by 2.1% compared to online and in-person investor exchange supervisors and senior management
great place to work 2021 meetings and organised two special personnel with 23 participants
activities including brewery visits and beer
tastings
Responsible Sourcing Living by Our Compass
100% 100% 6000+ Speak Up Helpline 100%
In 2022 100% of our material In 2022 100% of our directly cooperated In 2022 we conducted compliance training We established a reporting In 2022 of our suppliers had
suppliers were certified to ISO 14001 suppliers were certified to ISO 9001 or on topics such as ethics and code of platform known as "Speak up signed the agreements on business
other equivalent certifications conduct anti-bribery and anti-corruption Helpline" to protect the rights ethics and the Honesty and
and competition law compliance with and interests of whistleblowers Integrity Agreement
over 6000 enrolmentsChongqing Brewery Environmental Social & Governance Report ESG GOVERNANCE 09
ESG GOVERNANCE
The Company has successfully integrated ESG governance into its daily operations. We have developed a three-tier TTZAB management structure comprising the CEO TTZAB Target Owners and
ESG Owners. These individuals are responsible for the planning coordinating and implementation of our ESG strategies and establishing the KPIs setting targets and tracking progress to facilitate the
implementation of our ESG strategies and to achieve efficient management of the TTZAB.CEO Leading and responsible for ESG performance
TTZAB Target Owners Responsible for the coordination and facilitation of implementation of TTZAB
Programme ZERO ZERO ZERO ZERO ZERO ZERO
Coordinator Carbon Farming Packaging Water Irresponsible Accidents
Footprint Footprint Waste Waste Drinking Culture
Senior Director Director Director
VP Supply Chain VP Supply Chain VP Marketing VP Supply Chain
Corporate Affairs Procurement Procurement
ESG Owners Responsible for the implementation of ESG initiatives
ESG ChampionChongqing Brewery Environmental Social & Governance Report STAKEHOLDER ENGAGEMENT 10
STAKEHOLDER ENGAGEMENT
In 2022 we actively engaged with stakeholders via various channels maintained close contact with them understood and responded to the expectations and requirements of internal and external
stakeholders continuously improved the transparency of corporate information and created sustainable value.Stakeholders Engagement Channels Topics of Interest Our Responses
Questionnaire surveys Employee benefits
Encourage employees to speak freely on how to promote innovation and high performance value employee growth and their
Online and in-person activities Employee development and training physical and mental health as well as their legitimate rights and interests. We are committed to establishing diverse employee
Employees
Emails Employee rights and care engagement channels to effectively listen to our employees' feedback and address their concerns. Our goal is to cultivate a
culture that is diverse equal and inclusive making our company a great place to work
Meetings within departments Employee health and safety
Periodic reports and interim announcements
Risk management Respond to investors' ESG expectations and keep them up to date with our TTZAB programme
Performance disclosure meetings
Investors and Return On Investment (ROI) Held four shareholder meetings in 2022
Strategy meetings held by securities firms
Shareholders Corporate governance High scores in ratings such as MSCI indicate that the risk of the Company's business to investors is low
Investors' online roadshow and anti-roadshow
Information disclosure Completed the disclosure of 4 regular reports and 48 temporary notices in 2022
Visit the breweries
Consumer satisfaction survey Quality products
Customers and Complaints Hotline Diversified products Proactively respond to and handle consumer complaints
Consumers Channels at retail stores Sophisticated customer service Carry out responsible marketing and implement initiatives promoting responsible drinking
Marketing activities Smooth communication channels
Feedback channels for suppliers
Regular communication activities Fair open and just procurement Have established a complete and standardised supplier management system and implemented responsible procurement
Suppliers
Audit and assessment Suppliers support Actively carry out supplier training and communication activities
Information sharing
Regular and irregular media visits After the release of the periodic report report take the initiative to communicate with the media about the relevant situation
Timely communication of Company's latest situation Company's performance Proactively communicate with the media about the Company's progress in sustainable development
Media outlets Beer tasting for the media Sustainability performance Held one beer tasting for the media
Visit the breweries Company's future development strategy Held one brewery visiting in Dali
Interview with the President Invited media to conduct five interviews with the President
Regular visits and special reports Ensure compliance with all applicable laws and regulations
Participate in the research and selection activities Compliant business operations point
Government and Proactively disclose information on our contribution to economic development and employment
organized by the government Pay taxes according to law
Regulatory Agencies Promote the TTZAB programme and actively manage food safety and implement environmental governance
Participate in the formulation and revision of Driving local economic development
policies and regulations Actively participate in national demonstration pilot projects such as green factories and water efficiency leaders
Joining industry associations Actively seek partnerships and adhere to industry association guidelines
Product quality
Industry Associations Participating in formulating industry standards Influence industry association initiatives strengthen ESG management participate in events such as National Responsible
Industry cooperation and development
Participate in industry events Drinking Awareness Week
Product development and innovation Cooperate with colleges and universities such as Chongqing Technology and Business University and Chongqing Mechanical
Industry-university- Conduct programmes and cooperation with
Talent training and Electrical Vocational and Technical University and set up a "Chongqing Beer Session" and conduct customised talent training
research partners industry-university-research partners
Achieve win-win results through beer tasting job rotation and other formsChongqing Brewery Environmental Social & Governance Report MATERIALITY MATRIX 11
MATERIALITY MATRIX
Chongqing Brewery’s ESG Materiality Matrix in 2022
In 2022 we hired a third party to conduct a survey questionnaire on internal and
Product quality and safety
external stakeholders collect valuable inputs and prioritise the topics of interest
by following the material topic analysis process and methodology. The survey
results will guide the Company's ESG management and TTZAB implementation
enabling us to better meet the expectations and demands of stakeholders.Water stewardship
Business ethics
High Moderate Corporate governance
Product quality and safety Supply chain management Employee health
and safety
Water stewardship Energy management Data security and
Customer
Business ethics Sustainable packaging privacy protectionservice
Responsible
Employee health and safety Advocating responsible drinking marketing
Corporate governance Data security and privacy protection
Waste management Talent and Supply chain
development managementWaste
Responsible marketing management Energy
Diversity equity & inclusion managementSustainable
Sustainable
Talent and development packagingagriculture Diversity equity Advocating
& inclusion
Tackling climate change responsible
drinking
Tackling climate
Sustainable agriculture change
Customer service
Community contribution
Community contribution and impact and impact
Environmental topic
Social topic
Governance topic Importance to Chongqing Brewery
Importance to StakeholdersChongqing Brewery Environmental Social & Governance (ESG) Report Six TTZAB Ambitions 12
SIX TTZAB AMBITIONS
Together Towards ZERO and Beyond
(TTZAB) is our response to global
challenges such as inequality climate
change and water scarcity and society's
growing concern for health and well-being.The Company actively responds to the
ZERO Carbon Footprint ZERO Farming
Footprint ZERO Packaging Waste ZERO
Water Waste ZERO Irresponsible Drinking
and ZERO Accidents Culture ambitions set
by the Group and promotes our vision of
brewing for a better today and tomorrow.Responsible DiversityEquity Human Living By Community
Sourcing &Inclusion Rights Our Compass Engagement
ZERO Carbon Footprint 1 3
ZERO Farming Footprint 20
ZERO Packaging Waste 23
ZERO Water Waste 26
ZERO Irresponsible Drinking 3 1
ZERO Accidents Culture 36Chongqing Brewery Environmental Social & Governance Report ZERO CARBON FOOTPRINT 13
ZERO
Carbon
Footprint
Climate change is a common challenge that
mankind faces in the 21st century. It also poses
a threat to the water energy and agricultural
products that the Company’s beer production
depends on. The latest reports of The UN
Climate Change Conference (COP26) and the
Intergovernmental Panel on Climate Change
(IPCC) have identified the urgent need for human
beings to take action to address the climate crisis.To address the impact and challenges of
climate change on the Company's business the
Company actively pursues the ZERO Carbon
Footprint proposed by the Group. The Company Our Value
Chain Carbon Agriculture and Transportation
promises to achieve ZERO carbon emissions in
Emissions Processing Breweries Packaging and distribution Cooling
breweries by 2030 and to achieve a net ZERO
value chain by 2040. We have carried out actions
covering the entire value chain to achieve low- % of total value
carbon operations from raw material planting chain emissions 20% 14% 38% 18% 10%
production packaging and transportation to
cooling and storage.REDUCING OUR PRODUCT CARBON FOOTPRINT
The Company focuses on the carbon emissions We regularly conduct product carbon footprint beers) and sectoral guidelines for greenhouse assessment every three years. According to
of the entire product value chain and has carried assessments according to the scope 1 2 and gas emissions in the beverage industry. Through the assessment results in 2020 our product
out product carbon footprint assessments 3 emissions stipulated in the Greenhouse Gas these assessments we can quantify the specific carbon footprint had decreased by 15% since
under the guidance of the Group. We actively Accounting System (GHG protocol) compiled sources of carbon emissions and formulate 2015. We will conduct the next detailed product
promote green and low-carbon measures in the by the World Resources Institute (WRI) and targeted energy conservation and emissions carbon footprint analysis in 2023 based on data
five major sections of the value chain namely the World Business Council for Sustainable reduction plans to effectively manage our obtained in 2022 to assess our progress.agriculture and processing breweries packaging Development (WBCSD) and the Product corporate carbon footprint.transportation and distribution and cooling to Environmental Footprint Guide formulated by To evaluate our progress we collaborate with the
reduce our product carbon footprint. the European Commission (including rules for Group to conduct the product carbon footprintChongqing Brewery Environmental Social & Governance Report ZERO CARBON FOOTPRINT 14
CUTTING CARBON FROM CROPS
The Company acknowledges that the growing Some energy-saving and emission-
and processing of raw materials emit enormous reduction projects at our breweries: In 2022 the Company had reduced its Achieved green
amounts of greenhouse gases and have a comprehensive energy consumption electricity use
detrimental impact on the surrounding ecological In Chongqing Mawangxiang Shizhu compared to 2015 by
environment. In line with our ZERO Farming Hechuan Liangping breweries have 100%
Footprint target we focus on the cultivation achieved comprehensive utilisation of
and processing of raw materials and commit to packaging heat which has effectively
32%
improved the heat utilisation efficiency
collaborating with our upstream suppliers in the of bottle washing machines and
value chain to reduce carbon emissions from sterilisers. In 2022 Shizhu Brewery
the step. This will minimise the interference and implemented this project and the
impact of business production on the ecological heat consumption of the packaging
environment. For a detailed account of our energy- department has been reduced by 7%
compared to 2021.saving and emission-reduction actions in planting
and processing raw materials please refer to the
"ZERO Farming Footprint" section of this report. In Xinjiang Urumqi Brewery
has proactively promoted the From 2015 to 2022 the CO2 emissions in
implementation of energy-saving and brewing per hl of beer have been reduced by
ELIMINATING BREWERY EMISSIONS emission-reduction projects including over
equipment insulation upgrades
To reduce carbon emissions during this step we improved boiler efficiency and heat
actively carry out energy-saving and emission- exchangers upgrades. Between 2018 75%
and 2022 the heat consumption of
reduction measures in our breweries around the Urumqi Distillery was reduced by 38%.world and constantly step up our investment in A total reduction of 230000 tonnes of CO2
transformation of technologies and optimisation of equivalent to planting trees covering an area of
the energy mix in the process. SWITCHING TO RENEWABLE ENERGY: We
proactively explore clean energy alternatives A total consumption of green 2
TRANSFORMING BREWING EFFICIENCY : and try to replace traditional fossil fuel energy electricity of 6200000m
We make continuous efforts to increase energy with new energy such as biogas. The Company
efficiency and lower carbon emissions from beer is also committed to increasing the proportion 157142 MWhbrewing through performance benchmarking of renewable electricity used in beer brewing.management the application of good practices and In 2022 we achieved 100% green electricity
lean production. We also undertake energy-saving use with a total consumption of 157142 MWh achieved a carbon emission
technological transformation projects including the resulting in a carbon emission reduction of reduction of
application of dynamic low-pressure boiling the 97741.7 tonnes. Additionally in 2022 we had
comprehensive utilisation of thermal energy the successfully reduced the carbon emissions per 97741.7t
improvement of boiler efficiency and the energy- hectolitre of beer brewed by over 75% compared
saving transformation of bottle washing machines to 2015 with a total reduction of 230000 tonnes
and sterilisers. of CO2 from 2015 to 2022. This reduction is
equivalent to planting 6200000 m2 of trees or
80000 cars stopping driving for a year.Chongqing Brewery Environmental Social & Governance Report ZERO CARBON FOOTPRINT 15
DALI BREWERY
ACTIVELY SWITCHES TO
RENEWABLE ENERGY
TO REDUCE CARBON
EMISSIONS
As a renewable energy utilisation technology biogas Dali Brewery utilizes biogas boilers to produce steam to 1931.0 MWh of power meeting over 13% of the brewery's
power generation can not only save energy but also reduce energy consumption and decrease environmental electricity demand and contributing to a reduction of 1201.1
protect the environment and has huge environmental and pollution. In 2022 we have already consumed 1318.9 tonnes of carbon emissions over the course of the year.social benefits. The Company has long been committed MWh of heat from biogas resulting in a reduction of 266.4
to exploring and developing innovative solutions for tonnes of carbon emissions.Additionally Dali Brewery
renewable energy such as biogas heating in order to is also embracing photovoltaic power (PV) generation
establish a new era of sustainable production in the beer solutions with more than 8000 solar panels installed
industry. on the roofs of its buildings. These panels generatedChongqing Brewery Environmental Social & Governance Report ZERO CARBON FOOTPRINT 16
Heat Energy
Unit 2022 2021 2020 2019 2018
Energy Consumption
Heat energy from light fuel oil MWh 2514.4 / / / / （Year） Unit（MWh）
2018129579.9503188.1
Heat energy from heavy fuel oil MWh / / / / 58.3 2019 133839.1 489946.6
2020133077.7435062.9
Heat energy from natural gas MWh 387254.1 396071.7 324766.3 350204.7 321316.4 2021 158367.2 485218.0
2022157141.6468970.1
Heat energy generated by biogas from
MWh 1318.9 1367.1 1136.0 931.0 803.6
sewage plants Total consumption Total consumption
of power of heat
Heat energy from coal MWh / / / 22120.8 67716.3
Energy Consumption Breakdown in 2022
Heat energy from biomass fuel MWh 10167.5 28966.4 62223.2 60954.5 53013.2 Indicators Unit 2022
Percentage of
%100%
Heat from district heating facilities (with green electricity
MWh 77829.6 66877.9 57111.4 61353.0 66721.3
standard heating systems)
Natural gas Nm3 41883659.6
Diesel Litre 266025.6
Total heat consumed at the brewery MWh 479084.4 493283.1 445237.0 495563.9 509629.2Chongqing Brewery Environmental Social & Governance Report ZERO CARBON FOOTPRINT 17
MOVING TO LOWER-CARBON MAKING OUR LOGISTICS CUTTING IMPACTS FROM
PACKAGING SMARTER COOLING
From 2021 to 2022 converting from
Packaging materials are responsible for Transporting and distributing products between The carbon emissions from beer cooling accounts diesel to electric forklift trucks at
approximately 38% of beer product's carbon breweries warehouses bars restaurants and for about 10% of beer product's carbon footprint. breweries has effectively reduced CO2
footprint representing the largest source of carbon retailers account for 18% of beer product's carbon Although it is the least contributor of emissions in emissions
emissions throughout the value chain. We have emissions which makes it the third largest the whole value chain it is still an indispensable
collaborated with our upstream packaging material source of carbon emissions in the entire value area of our emission-reduction efforts. We actively 2.24t
suppliers under the guidance of the Group's ZERO chain. To reduce emissions in the transporting promote the Group's philosophy that all newly
Packaging Waste initiative. Various activities have and distribution of products the Company is purchased refrigerators must utilise LED lighting
been carried out. For more information please transforming from diesel to electric forklift trucks at and environmentally friendly refrigerants.refer to the "ZERO Packaging Waste" section of this our breweries leading to a reduction of 2.24 tonnes By implementing hydrofluorocarbon (HFC)- Every year using HFC-free refrigerants
and energy-saving fridges can reduce
report. of carbon emissions since 2021. While vigorously free refrigerants and energy-saving fridge the energy consumption in cooling by
promoting the electrification of our fleets we have Company can annually decrease final energy
also initiated the forklift truck battery replacement consumption1 in cooling by 10% effectively reducing
project by replacing traditional lead-acid batteries greenhouse gas emissions from refrigerants. In 10%
with more environmentally-friendly lithium-ion 2021 we initiated the energy-saving fridge project
ones. We also collaborate with logistics suppliers to procuring approximately 18000 energy-saving
strictly monitor fuel usage in product transportation fridges every year.and provide fuel efficiency-related training to drivers Every year implementing the energy-
to enhance their awareness of energy-saving and saving fridge project and purchasing
energy-saving fridges about
environmental performance.
18000
1 There are two forms of energy consumption: one is one-time direct consumption also known as final consumption; the other is processing and conversion consumption also known as primary consumption. Final
consumption as opposed to primary consumption means that energy is not used for intermediate processing and conversion but is directly put into various heating power and other equipment for consumption in
production and non-production activities.Chongqing Brewery Environmental Social & Governance Report ZERO CARBON FOOTPRINT 18
CUTTING DAILY OPERATING EMISSIONS
Our efforts extend to raising awareness about energy conservation and emissions reduction throughout the Company encompassing procurement production and sales to establish standardised energy usage management
practices. To encourage employee participation in our low-carbon initiatives we have instituted a monthly performance reward programme that recognises outstanding contributions to carbon reduction. Our aim is to promote a
culture of shared responsibility for achieving the Company's low-carbon operational goals.Greenhouse Gas Emissions
Indicators Unit 2022 2021 2020 2019 2018
CO2 emissions from the use of light fuel oil tCO2e 670.7 / / / /
CO2 emissions from the use of heavy fuel oil tCO2e / / / / 16.3
CO2 emissions from the use of natural gas tCO2e 78209.8 79990.6 65589.8 70727.3 64893.1
CO2 emissions from the use of coal tCO2e / / / 7533.5 23061.5
CO2 emissions from district heating facilities (with tCO2e 22881.9 19662.1 16790.8 18037.8 19616.1 standard heating systems)
CO2 emissions from the heat energy consumed tCO2e 101762.5 99652.8 82380.6 96298.6 107586.8
CO2 emissions from the use of electricity tCO2e / / / 39594.5 84311.1
Total CO2 emissions from factories tCO2e 101762.5 99652.8 82380.6 135893.1 191897.9
CO2 emissions from refrigerants tCO2e 3773.2 3728.9 6951.8 10753.7 1646.1
GHG emissions (Scope 1) 2 tCO2e 82653.8 83719.5 72541.6 89014.5 89616.9
GHG emissions (Scope 2) 3 tCO2e 22881.9 19662.1 16790.8 57632.3 103927.2
GHG emissions (Scope 1+Scope 2) tCO2e 105535.7 103381.6 89332.3 146646.8 193544.0
2 Scope 1 includes carbon dioxide emitted by direct fuels and carbon dioxide produced by refrigerants.
3 Scope 2 includes carbon dioxide emitted by indirect fuels.Chongqing Brewery Environmental Social & Governance Report ZERO CARBON FOOTPRINT 19
ZERO Carbon Footprint
OUR PROGRESS & TARGETS
Planned Actions for 2022 Progress in 2022 2022 Targets Status 2030 Targets 2040 Target
Conducted energy-saving technological
transformation projects including the
application of dynamic low-pressure
Actively implement energy- boiling comprehensive utilisation of
saving technological thermal energy and boiler efficiency
transformation activities at improvement.breweries and reduce the use 50% reduction in carbon emissions Our total CO2 emissions in 2022 decreased
of fossil fuel-based thermal at our breweriesby 225000 tonnes compared to 2015.energy (or heat generation) with Fully achieved
renewables The CO2 emissions in our brewing per
hectolitre of beer in 2022 have been
reduced by over 75% and total energy
consumption by 32% compared to 2015
Increased the proportion of renewable ZERO carbon emissions at
Deploy PV facilities at breweries electricity used in beer brewing and a 100% electricity from renewable our breweries
or purchase green electricity total of 157142 MWh green electricity was sources
consumed in 2022 Fully achieved 30% reduction in value chaincarbon emissions（comparedto 2015） Net ZERO value chain
Positively influence upstream Continued to reduce carbon emissions from All renewable electricity
suppliers in the industry chain raw material procurement logistics and in breweries and all must
and raw material suppliers transportation terminal storage and other come from new assets
to carry out carbon emission aspects (e.g. via power purchase
reduction actions agreements)
The 2019 value chain carbon footprint 15% reduction in value chain carbon
Reduce emissions from growing measurement results showed a 15% emissions
and processing raw materials decrease compared to 2015 and a new Fully achieved
packaging transportation and round of value chain carbon footprint
distribution as well as other assessment is planned to be carried out in
aspects 2023
Purchase new fridges using Used HFC-free refrigerants and energy-
environmentally friendly saving fridges reducing final energy Using low-climate-impact cooling
refrigerants consumption in cooling by 10% every year systems Fully achieved
Fully Partially Not
achieved achieved achievedChongqing Brewery Environmental Social & Governance Report ZERO FARMING FOOTPRINT 20
ZERO
Farming PROMOTING SUSTAINABLE
Footprint AGRICULTURE
Our production and operation rely on various Building on the long-term cooperative relations
natural raw materials and resources such as established by the Group with agricultural CASE SUSTAINABLE FOREST
barley hops and water. However agriculture on communities across the globe the Company actively 30%CONSERVATION
which human beings depend faces unprecedented participates in and supports the Group's sustainable of our raw materials will be from
challenges and contradictions due to population agricultural practices in China. This includes providing Forests play an irreplaceable role in regenerative agricultural practices and are
sustainably sourced by 2030
growth climate change and overuse of farmland. support to local farmers by helping them to bear the mitigating global warming and safeguarding
In light of these challenges we are committed to risks and costs associated with the transformation biodiversity. We support forest conservation
regulations and initiatives and are committed
promoting sustainable agriculture by protecting to regenerative agriculture as well as offering
to maximizing the conservation of forest
farmland saving and using water efficiently training in sustainable agriculture practices. Our aim
resources at all levels of the industry
managing environmental pollution and restoring is to promote regenerative agriculture to customers 100%chain in order to fulfill our sustainability
agricultural ecology. Our aim is to protect the and consumers in the future through brand and of our raw materials will be from commitments. We give preference to paper regenerative agricultural practices and are
healthy development of land crops and the product promotion raising awareness of the benefits packaging materials certified by the Forest sustainably sourced by 2040
human environment while reducing the impact of of regenerative agriculture and building a more Stewardship Council (FSC) or the Program
agriculture on natural ecosystems. sustainable food system. Additionally we actively for the Endorsement of Forest Certification
respond to and support the efforts of the Group its Schemes (PEFC) and by using market-
To achieve this we have promoted the ZERO suppliers and partners in exploring scalable climate- based economic systems to bring forests
Farming Footprint target which involves growing friendly regenerative agriculture programmes to into sustainable management and avoid the
30% of our raw materials using regenerative promote a healthy ecosystem establish a high- risk of deforestation from over-consumption
and over-harvesting.practices and sustainably sourcing them to 100% by quality and stable agricultural supply chain and
2040. We are committed to protecting biodiversity promote agricultural development.
and soil health while improving the natural carbon
sequestration capacity of farmland. By promoting
regenerative agricultural practices we help improve
the resilience of the food system while further
reducing carbon emissions from agricultural product
cultivation. This will help the Company to achieve
the target of a net ZERO value chain by 2040.Furthermore by selecting raw material suppliers
in close proximity to our breweries we can shorten
the transportation distance improve transportation
efficiency and reduce the carbon footprint of our
products' entire life cycle.Chongqing Brewery Environmental Social & Governance Report ZERO FARMING FOOTPRINT 21
THE COMPANY
STRENGTHENS MATERIAL
RECYCLING IN BEER
PRODUCTION
To minimise a negative impact on the environment waste the by-products of beer brewing in agriculture and animal which was used for cattle fodder. A fraction was dried and
such as spent grains and waste yeast produced in the husbandry achieving harmonious development with nature. sold to feed companies for animal husbandry and waste
production process of brewing enterprises are discharged yeast was dried and sold to feed companies for same
directly. Transforming waste into energy and resources and Spent grain in beer brewing is rich in fibre crude protein purpose. The use of recycled waste yeast and spent grains
reusing it not only helps tackle pollution issues but also crude fat trace elements amino acids and aromatic as fodder and fertilizer can also cushion the demand for
produces by-products with significant economic and social substances of alcohol. The high nutritional value makes fodder and fertiliser in agriculture and animal husbandry
benefits. The Company highly values the recycling of spent it the perfect fodder and raw material for fertilisers. In thereby reducing greenhouse gas emissions generated
grains and employs natural ecological laws and ecological 2022 the Company recycled 190000 tonnes of spent during the production and use and effectively reducing the
system methods to unleash their potential. We also reuse grains and 1660000 tonnes of waste yeast most of agricultural carbon footprint of our products.Chongqing Brewery Environmental Social & Governance Report ZERO FARMING FOOTPRINT 22
SUSTAINABLE RAW MATERIAL
PROCUREMENT MANAGEMENT
At present
In order to ensure the traceability of raw materials
the Company strictly follows internal policies such as
Requirements on Direct Material Quality and Suppliers' 100%
Requirements on Non-contact Material Quality to improve the main auxiliary
environmental impact of the supply chain. We also continue materials
to promote the process of local procurement of raw materials
provide employment opportunities for the origin of agricultural
Localized
products facilitate local economic development and reduce 50% procurement
the negative impact on human and labour rights in farming. hops
We currently source 100% of our key ingredients locally with
a further 50% of our hops and 30% of our malt products
being sourced locally. 30%
malts
ZERO Farming Footprint
OUR TARGETS
2030 Target 2040 Target
30% of raw materials from regenerative agricultural practices and sustainably sourced 100% of raw materials from regenerative agricultural practices and sustainably sourcedChongqing Brewery Environmental Social & Governance Report ZERO PACKAGING WASTE 23
ZERO
Packaging
Waste INNOVATING FOR MORE SUSTAINABLE PACKAGING
Packaging materials are essential in the product In designing packaging we use glass bottles Actions on lightweight packaging
life cycle. Advancing circular packaging not only containing 60% recycled materials and adopt The percentage of recycled materials used in
enables us to reduce the impact on the limited environmentally friendly inks and labels without Cutting the weight of bottles glass bottles is
natural resources but also brings long-term PVC materials to minimise the pollution of
economic benefits to the Company. Reducing the thickness of the cap metal materials to the environment.and the liner compound weight 60%
We promote the Group's ZERO Packaging Waste REDUCING USE OF MATERIALS Lightweighting board for corrugated
ambition which is to make all our beer bottles cartons Cutting the weight of Carlsberg Tuborg and
and cans 100% recyclable reusable or renewable. In procuring materials we implemented lighter-
Our targets also include collecting and recycling Reducing the thickness of aluminium cans
Kronenbourg 1664 glass bottles by around
weight glass bottles for Carlsberg Tuborg and
at least 90% of our packaging materials and Kronenbourg 1664 resulting in an around 10% Cutting the thickness of shrink warp
reducing virgin fossil-based plastic usage by at least 10%reduction in weight as well as a reduction of over
50% while ensuring no less than 50% recycled 10000 tonnes of glass usage and over 3000 cutting material use by
content in bottles and cans. We aim to explore tonnes of carbon emissions this year.sustainable packaging alternatives and minimise
the environmental impact of disposable packaging Additionally we have piloted the use of lighter- 10000t
by proactively researching and collaborating on weight board leading to an overall weight
This year reducing carbon emissions by over
recycling initiatives contributing to building a green reduction of about 4.7%. It is expected that this
and low-carbon circular industry chain. programme will reduce paper consumption by
about 3800 tonnes and lower carbon emission by 3000t
approximately 3100 tonnes per year. At present we
SUSTAINABLE PACKAGING Use of Packaging Materials and Related Data have completed pilot projects and plan to gradually in 2022
promote these changes to other breweries and The programme is expected to reduce paper
The Company is dedicated to innovating for carton suppliers over the next two years in batches. consumption by about Indicators Unit Data of 2022
sustainable packaging and continuously improving our
packaging portfolios to reduce packaging materials' 3800t/year
Metal tonnes 25452
environmental impact.reducing carbon emissions by
Glass tonnes 546641 approximately
Plastics tonnes 26514 3100t/year
Paper tonnes 113112
* The data refer to the amount of brand new glass bottles and do
not include the old recycled bottles.Chongqing Brewery Environmental Social & Governance Report ZERO PACKAGING WASTE 24
RE-SHAPING THE FUTURE:
GROUP AND RAINS
COLLABORATE TO PROMOTE
SUSTAINABILITY
We are continuously exploring the synergy among its Among them the co-branded waterproof jacket which is a carbon content of its glass bottles thereby contributing
brands fashion and environmental protection. In 2021 light and popular fashionable item uses recycled polyester to a low-carbon future and achieving a ZERO Carbon
Carlsberg brand collaborated with the Danish fashion fibre made from about 31 recycled plastic bottles. It is Footprint.lifestyle brand Rains to jointly design an "environmentally not only lightweight but also waterproof showcasing the
friendly capsule series" that includes raincoats fisherman Group's commitment to lightening the burden on the earth
hats and backpacks made of recycled polyester and reshaping the future of environmental protection. The
materials to facilitate the synergy between fashion and Company also actively upholds the Group's philosophy of
environmental protection. environmentally friendly development by minimising theChongqing Brewery Environmental Social & Governance Report ZERO PACKAGING WASTE 25
SUPPORTING COLLECTION RECYCLING
AND REUSE
We actively carry out product packaging recycling Actions on recycling and reuse of packaging materials Collection of Packaging Materials and Related Data The return rates of Wusu beer glass bottles
projects add recyclable information labels on product outside Xinjiang has been increased to
packaging and encourage suppliers and distributors to Collection and sale of cullet from production to
participate in recycling to increase the utilisation rate Indicators Unit Data of 2022beer bottle manufacturers 50%
of packaging materials. Starting with data analysis Number of
we identify the vulnerable areas of recycled product Promote the trade-in of plastic pallets returnable
packaging bottles referred to as "bottle return" analyse glass bottles / 3202814016.0Provide a higher percentage of incentives to used for
the value chain with sales regions and distributors distributors to increase bottle return rates packaging
and publicise and implement the bottle return process
Number of
to continuously promote the return of bottles by Increase deposits for beer barrels and plastic glass bottles
distributors and bottle return merchants reducing the pallets returned to / 2711441249.0
the brewery
pollution of packaging and waste. In 2022 the bottle Sell waste cardboard boxes waste plastic from market
return rates of Wusu beer glass bottles outside Xinjiang boxes waste pallets and other recyclables to
increased from less than 30% to 50%. recycling suppliers for recycling Return rate % 71.7%
ZERO Packaging Waste
OUR TARGETS
2030 Targets
100% recyclable reusable or renewable packaging 50% reduction of virgin fossil-based plastic
90% collection and recycling rate for bottles and cans 50% recycled content in bottles and cansChongqing Brewery Environmental Social & Governance Report ZERO WATER WASTE 26
ZERO
Water
Waste
Water is fundamental for the survival and by adopting advanced technologies processes and Water Usage Water
development of all living things on the earth. It is equipment transformation to recycle the wastewater consumption per hl of beer
not only indispensable for the agricultural products generated in the production process. In achieving the produced (hl/hl)
3.28
we purchase but also for the production of beer. ZERO Water Waste ambition we have surpassed 3.08
Hence water resources are crucial to maintaining the target set by the Group for 2022 with an annual 2.83 2.48
the sustainability of the earth's ecological average water usage efficiency of 2.24 hl/hl far above 2.24
environment. the industry average in China of 3.5 hl/hl.Water usage
We continuously strive to improve water ELIMINATING BREWERY WATER （Year）2018 2019 2020 2021 2022 efficiency has
management by promoting processes and WASTE increased from
measures that increase water efficiency applying 3.87 hl/hl in 2015
wastewater treatment and reuse technologies at to 2.24 hl/hl in We have always been committed to protecting
more breweries to contribute to the Group's target 2022 resulting in and conserving water resources. Through our lean reduction in water
of achieving an industry-leading water usage production management we have implemented consumption by
efficiency of 2.0 hl/hl in the Company and 1.7 hl/ a series of water-saving measures such as
hl at our breweries in high-risk areas. For high- transforming bottle washersrecycling packaging
risk breweries we partner with experts NGOs and 42%water using water-saving vacuum pumps
communities to carry out water replenishment and reusing reclaimed water. These measures
projects to help breweries in high-risk areas have helped us to continuously reduce water
achieve the goal of 100% replenishment of water consumption in the production of each hectolitre
consumption by 2030 and promote the circulation of beer. Water usage efficiency has increased from
of water resources. 3.87 hl/hl in 2015 to 2.24 hl/hl in 2022 resulting
in a 42% reduction in water consumption. In
WATER MANAGEMENT 2022 we consumed 2.07 million kilolitres less We consumed
water compared to 2015 which is equivalent to
The Company values the reasonable use of water the amount of water contained in 1000 standard 2.07million kilolitres
resources and upholds the ambition of ZERO Water swimming pools. less water in 2022 than in
Waste which aims to reduce water usage at our 2015 which is equivalent to the
breweries by 25% by 2022 and 50% by 2030. amount of water contained in
1000 standard swimming pools.
We strictly abide by the Water Law of the People's
Republic of China and other laws and regulations.The Company actively improves water efficiencyChongqing Brewery Environmental Social & Governance Report ZERO WATER WASTE 27
The Company's achievements in water conservation in 2022 won many honours:
Carlsberg (China) Beer Industry and Carlsberg Co. Ltd. (Dazhulin Brewery) Carlsberg Co. Ltd. (Dazhulin Brewery) Carlsberg Beer (Guangdong) Co. Ltd.Trade Co. Ltd. won the national "Water and Liangping Branch of Carlsberg was awarded the "Chongqing Municipal (Huizhou Brewery) won the title of
efficiency Leader" title Co. Ltd. (Liangping Brewery) under Water-saving Enterprise" title "Huizhou Water-saving Enterprise"
the Company were awarded the "2022
Chongqing Municipal Water Efficiency
Leader" title
CASE "LIGHTHOUSE" WATER-SAVING PROJECT OF DAZHULIN BREWERY
Dazhulin Brewery in Chongqing is an excellent
example of the Company's water-saving projects.Since its launch of the "Lighthouse" project in March
2020 Dazhulin has aimed to reduce its water
consumption. Through measures such as continuously
optimising operation processes improving the
production efficiency of the can line upgrading its
water treatment plants and bolstering tap water pipe
networks Dazhulin has been able to decrease its water
consumption per hectolitre of beer produced. As of the
end of 2022 the average water consumption per hl of
beer produced of Dazhulin was only 1.77 hl/hl making it
the champion of water conservation within the Group.At present Dazhulin uses reclaimed water that has
been treated up to the standard for toilet flushing
floor cleaning and refilling evaporative condensers. It
is estimated that the use of reclaimed water treatment
systems and the reuse system for spray water used
in packaging can save up to 50000 tonnes of water
annually.Chongqing Brewery Environmental Social & Governance Report ZERO WATER WASTE 28
LIANGPING BREWERY
BECAME THE "WATER-
SAVING CHAMPION" AMONG
THE GROUP'S BREWERIES
WITH ONLY GLASS BOTTLE
LINE
The beer production line is mainly divided into two forms: Through optimising daily cleaning methods and upgrading hl in 2020. This makes Liangping the first company with
glass bottle lines and cans lines. Breweries with only glass production processes and technologies 93 points with only glass bottle line of the Group to achieve a water
bottle lines face more urgent and difficult challenges in water-saving potentials were identified and acted upon. consumption efficiency of lower than 2.0 hl/hl. Hence it
water conservation due to the high water consumption of To encourage employees to actively participate in water- has been awarded the title of "water-saving champion"
bottle washing compared to breweries with can lines. saving efforts the Company incentivises employees to offer among the all the breweries of the Group with only glass
suggestions and rewards employees whose suggestions are bottle lines and the "2022 Best Performer in Asia on
Liangping only has glass bottle lines and thus significant adopted. So far more than 80 water-saving suggestions Water Conservation Award" offered by the Group. The
challenges in reducing water consumption. In response have been implemented. Company will actively promote the successful experience
Liangping Brewery launched a special water-saving of Liangping to other breweries to contribute to urban
project in 2022 which involved examining all sections With the joint efforts of all at the brewery Liangping water conservation efforts.of its production line including brewing and packaging achieved an average water consumption efficiency of
to identify potential areas for water-saving measures. 1.98 hl/hl in the first quarter of 2022 down from 2.76 hl/Chongqing Brewery Environmental Social & Governance Report ZERO WATER WASTE 29
Water Usage Efficiency of Reclaimed Water Reusing Projects (hl/hl)
CASE RECLAIMED WATER REUSE PROJECT
Urumqi Brewery Yinchuan Brewery
The reuse of reclaimed water not only of reclaimed water treatment stations
cushions the demand for freshwater but in several breweries in Xinjiang Ningxia 2.5 0.3 2.0 0.2
also mitigates wastewater pollution making Chongqing etc.. The sewage discharged 2.2 1.8
it an effective way to achieve sustainable from the factory is treated at the wastewater
development. In beer brewing a large amount treatment plant and then sent to the reclaimed
of fresh water is used and also plenty of water treatment plant where it is further
(Year) 2021 2022 (Year) 2021 2022
wastewater is generated. Hence the Company treated up to the required standard and used
is committed to employing reclaimed water for cooling watering plants or flushing toilets.reuse technologies in its daily operations to Dazhulin Brewery Wusu Brewery
increase the circulation of water. In 2022 the Company's water reuse projects 0.1
saved a total of 130696 tonnes of water. In 2.6 0.3 2.5
In order to reduce the waste of water resources 2023 the company will Implement the project 2.3 2.4
the Company has invested in the construction in more breweries.(Year) 2021 2022 (Year) 2021 2022
Water Usage Efficiency in 2022 (hl/hl) Water Usage Efficiency in 2021 (hl/hl)
UNDERSTANDING OUR WATER RISK
We place great importance on water management Contribute to the reducing water
in regions that face water scarcity. In 2020 the consumption of breweries in high-risk
Group collaborated with the World Wildlife Fund areas to
(WWF) to carry out water risk assessments and
identified 17 areas with high water risk seven of 1.7 hl/hl
which are located in China.List of breweries in high water risk areas
Changzhou Chongqing Korla Yinchuan
The Reclaimed Water Treatment Plant of Xinjiang Wusu Brewery Kunming Urumqi WusuChongqing Brewery Environmental Social & Governance Report ZERO WATER WASTE 30
Data on Water Resources
Indicators Unit 2022 2021 2020 2019 2018
cubic
Own boreholes 451203.0 470627.0 503297.0 261898.0 173488.0
meters
cubic
Municipal water 5459109.4 5944091.6 5466992.4 6215047.8 6097217.2
meters
cubic
Surface water 380982.0 472525.0 485496.0 717632.0 631715.0
meters
cubic
Total water use 6291294.4 6887243.6 6455785.4 7194577.8 6902420.2
meters
Total water cubic
consumption 6221452.7 6792689.5 6384578.6 6958425.7 6813266.1meters
ZERO Water Waste
OUR PROGRESS & TARGETS
Planned Actions for 2022 Progress in 2022 2022 Targets Status 2030 Targets
Continued to employ advanced technologies process
Continue best-practice efficiency and equipment transformation to recycle the wastewater
improvements and investments generated in the production process 25% reduction in
in more efficient water treatment water usage at our
50% reduction in water usage
at our breweries
and bottle washers Water usage efficiency decreased from 3.9 hl/hl in 2015 to breweries Fully achieved
2.2 hl/hl in 2022 reducing water consumption by 42%
Water usage efficiency of 2.0
Launched the "Lighthouse" water-saving project at Dazhulin hl/hl in the Company and 1.7
Roll out water recycling Brewery Explore going below hl/hl at breweries in high-risk
treatment plants at breweries in 2.0 hl/ hl at all areas
high-risk areas Saved over 2.07 million kilolitres of water in 2022 breweries in high-
compared to 2015 risk areas Fully achieved 100% replenishment of water consumption at breweries in
high-risk areas
Fully Partially Not
achieved achieved achievedChongqing Brewery Environmental Social & Governance Report ZERO IRRESPONSIBLE DRINKING 31
ZERO
Irresponsible
Encouraging employees to drink alcohol
Drinking in moderation
As public living standards improve consumers are In order to better implement the initiatives of
embracing healthier and better consumption habits. responsible drinking we require marketing-related CASE YANCHENG BREWERY LAUNCHES REPONSIBLE DRINKING INITIATIVE
As a leading brewer we actively undertake corporate employees to complete the study and training
social responsibility one of which is to help reduce and of the Marketing Communication Policy during
prevent consumers from the harmful use of alcohol. their orientation and review it annually. In 2022 Yancheng Brewery has taken a proactive stance
We encourage consumers to establish a consumption we updated the Employee Manual of Carlsberg on responsible drinking by displaying signs in
concept of responsible drinking enjoy a healthy and Enterprise Management Consulting Co. Ltd. its office area that prohibit drunk driving drunk
moderate drinking life and make brews a bright which explicitly requires employees to abide by the working and underage drinking. When hosting
aspect of their better life. initiative of responsible drinking not to drink alcohol the visits of government officials Yancheng
during work hours and to promote the benefits of Brewery also included its achievements in
We are committed to achieving the ZERO Irresponsible moderate drinking in communications that promote promoting responsible drinking enabling the
Drinking targets set by the Group which promise beer products. local government to gain a better understanding
that 100% responsible drinking messaging through of the brewery's responsible drinking policies Signs Putting up in Yancheng Brewery Office
Area
packaging and brand activations 100% of our markets PROMOTING SAFE DRIVING and culture.run partnerships to support responsible consumption
100% availability of alcohol-free brews and 35% of Drunk driving and drunken driving pose a serious
our brews from the Company will be low-alcohol or threat to public safety. Our Business has taken
alcohol-free before 2030. We promote the concept of various measures to protect the public and appeal
responsible drinking among the public provide more for safe driving and road safety. For several years
alcohol-free brews to the market ensure that consumers we have partnered with Chongqing Municipal
obtain reliable information when purchasing brews and Civilization Office Chongqing Public Security Bureau
carry out campaigns to prevent drinking while driving Traffic Management and other departments to carry
underage drinking or excessive drinking to build a healthy out public welfare campaigns themed "No Drunk
and responsible brand image. Driving". Additionally in the Company’s annual
Safety Day activities a number of breweries such as
ENCOURAGING Tianchang Yinchuan Yancheng carried out that all
employees pledged to "keep rational and civilized
RESPONSIBLE BEHAVIOUR refuse to drink and drive" as well as practised safe
driving behavior. In addition our brand Wusu Beer
We strictly abide by the Marketing Communication has set up signs of "Wusu Beer · For Love Driving"
Policy issued by the Group and implement the in some brand activity exhibition areas to actively
following measures to promote a rational moderate convey the civilized drinking concept of "No driving
and healthy drinking culture. Local Government Officials Visiting Yancheng Breweryafter drinking" to consumers.Chongqing Brewery Environmental Social & Governance Report ZERO IRRESPONSIBLE DRINKING 32
EXPANDING CHOICE WITH NO- AND
LOW-ALCOHOL BREWS
As consumers embrace healthy patterns of Having launched Chongqing 0.0% Beer and WFSM
consumption and diversified demands the Company Lemon-flavoured Low-alcohol Beer having achieved
has actively enriched its product categories and the Group's objective of having "
improved its alcohol-free and low-alcohol brew
portfolio to meet different market demands. 100%
availability of alcohol-free brews (AFBs)
by 2022" in the Chinese market.Up to now the alcohol-free and low-alcohol brews that we have put into mass production and sell are as follows: CASE WE LAUNCHED CHONGQING 0.0% BEER
Name of brew ABV Type Place of origin In 2022 we launched "Chongqing Alcohol-Free participated in the development of the group
Brew" which uses an advanced dealcoholisation released T/CBJ 3108—2021 "Non-alcohol
Chongqing 0.0% Beer