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焦点要闻: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)

来源:证券之星 发布时间:2023-05-22 21:29:52

Chongqing Brewery Environmental, Social & Governance (ESG) Report Six TTZAB Ambitions   1


(资料图片)

           Chongqing Brewery Co.,Ltd.

                                                         (600132.SH)

ENVIRONMENTAL, SOCIAL

 & GOVERNANCE REPORT

                                                                                                                                     Chongqing 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                         01          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

                                                                                                                                                                        DIVERSITY, EQUITY & INCLUSION                        50

                                                        the report all refer to "Chongqing Brewery Co., Ltd.",     ABOUT US                                 03

Time Span                                               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                                61

                                                        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                            07         APPENDIX                                             65

                                                        expectations of the management, which may be

Scope of Reporting                                      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 ENGAGEMENT                     10

                                                        not undertake the obligation to update any forward-                                                             SHANGHAI STOCK EXCHANGE ESG                          66

The disclosure standards it follows are consistent      looking statements in this report.                                                                              INDEX

                                                                                                                   MATERIALITY MATRIX                         11

with our annual report.

                                                        Report Accessibility                                                                                            CONTRIBUTING TO THE UN        67

Basis of Preparation                                    This report is available in Simplified Chinese and

                                                                                                                                                                        SUSTAINABLE DEVELOPMENT GOALS

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                  13

- 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

All information cited in this report is from

                                                                                                                      ZERO Irresponsible Drinking            31

Chongqing Brewery Co., Ltd."s official documents,

                                                                                                                      ZERO Accidents Culture                 36

statistical reports and financial reports. The

information presented in this report is for the

                                                                                                   Chongqing 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 80,000 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

                     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

    Lee Chee Kong

                     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 the

                                                                                                                                         Chongqing 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 brands

                                                                                                                                  Chongqing Brewery Environmental, Social & Governance Report 2022 AWARDS AND HONOURS   04

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 marketing

                                                                     The "Best Board of Directors Award for Investor Relations

                                                                     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-

                                                                     Listed Companies in China                                                         border Marketing"

Carlsberg (China) Beer Industry and Trade Co., Ltd. won the

title of National "Water Efficiency Leader"

                                                                     The "Strategic Restructuring of Carlsberg and Chongqing                           "WFSM beer suitcase event" won the "Gold Award for New

                                                                     Brewery" selected as "a classic case of cross-border M&As                         Consumer Marketing" of 22th IAI AWARDS

Dazhulin Brewery and Liangping Brewery won the title of

                                                                     in China"s capital market" by China Association for Public

Chongqing "Water Efficiency Leader"

                                                                     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

                                                                     "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) 2022

                                                                                           Chongqing 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)

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

                                                                                                     Carbon                30% reduction in value chain carbon emissions                             Net ZERO value chain

the platform for the Group to operate

                                                                                                     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

Brewery has made remarkable progress      participates in promoting TTZAB                            ZERO

in facilitating the implementation of     programme and releases latest progress                     Farming

                                                                                                                           and are sustainably sourced                                               regenerative agricultural practices

                                                                                                     Footprint

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.                                          2030 Targets

                                                                                                     ZERO

, 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

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,

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

                                                                                                                           other initiatives to manage the impacts on our employees, operations, value chain and wider

to address material ESG topics, and

                                                                                           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

                                                                                           Human Rights

and 2040, including a net ZERO value                                                                                       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 and

                                                                                                                                                  Chongqing 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%                                    3,800t

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

         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     2018

                                                                                                                                                                    Chongqing Brewery Environmental, Social & Governance Report ESG HIGHLIGHTS            08

ESG HIGHLIGHTS

  Products and Services                                                                                                      Community Engagement

                                Zero product

                                recalls                       100%                             98.2%                              RMB    3.46               million                                          100,000

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          21,0 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 18,000             around 1,800 students in Yibin for 19                                      Project. 100,000 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

     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

                                                                                                                                                                                   Speak Up

     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 6,000 enrolments

                                                                                                                                          Chongqing 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 Champion

                                                                                                                                                           Chongqing 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 forms

                                                                                                                                                 Chongqing 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

                                                                                                                                                                                                                   Employee health

   Product quality and safety                 Supply chain management

                                                                                                                                                                                                                     and safety

   Water stewardship                          Energy management                                                                                         Data security and

                                                                                        Importance to Stakeholders

                                                                                                                     Customer                           privacy protection

   Business ethics                            Sustainable packaging                                                   service

                                                                                                                                  Responsible

   Employee health and safety                 Advocating responsible drinking                                                      marketing

   Corporate governance                       Data security and privacy protection

                                              Waste management                                                               Talent and                                                Supply chain

                                                                                                                            development                                                management

                                                                                                                                                                      Waste

                                              Responsible marketing                                                                                                 management                           Energy

                                              Diversity, equity & inclusion                                                                                                                            management

                                                                                                                                                                                       Sustainable

                                                                                                                                          Sustainable

                                                                                                                                                                                        packaging

                                              Talent and development                                                                      agriculture              Diversity, equity                          Advocating

                                                                                                                                                                     & inclusion                              responsible

                                              Tackling climate change

                                                                                                                                                                                                                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

                                                                              Chongqing 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   Diversity,Equity          Human                 Living By                  Community

                                              Sourcing       &Inclusion              Rights               Our Compass                 Engagement

   ZERO Carbon Footprint              13

   ZERO Farming Footprint             20

   ZERO Packaging Waste               23

   ZERO Water Waste                   26

   ZERO Irresponsible Drinking        31

   ZERO Accidents Culture             36

                                                                                                                                  Chongqing 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

                                                       Our Value

Footprint proposed by the Group. The Company

                                                       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-

carbon operations from raw material planting,

production, packaging, and transportation, to

                                                       % of total value

                                                       chain emissions          20% 14%                                                              38%                          18%                     10%

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 footprint

                                                                                                                           Chongqing 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

Footprint target, we focus on the cultivation                    achieved comprehensive utilisation of

                                                                 packaging heat, which has effectively

and processing of raw materials and commit to

                                                                 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

                                                                 department has been reduced by 7%

environment. For a detailed account of our energy-

                                                                 compared to 2021.

saving and emission-reduction actions in planting

and processing raw materials, please refer to the

                                                                 In Xinjiang, Urumqi Brewery

"ZERO Farming Footprint" section of this report.

                                                                 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

                                                                 exchangers upgrades. Between 2018

actively carry out energy-saving and emission-

                                                                 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 230,000 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

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

brewing 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 157,142 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       97,741.7 tonnes. Additionally, in 2022, we had

comprehensive utilisation of thermal energy, the       successfully reduced the carbon emissions per

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 230,000 tonnes

and sterilisers.                                       of CO2 from 2015 to 2022. This reduction is

                                                       equivalent to planting 6,200,000 m2 of trees or

                                                                                                               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           1,931.0 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 1,201.1

protect the environment, and has huge environmental and     pollution. In 2022, we have already consumed 1,318.9               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 8,000 solar panels installed

industry.                                                   on the roofs of its buildings. These panels generated

                                                                                                     Chongqing 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     2,514.4        /           /           /                  /                     (Year)                                    Unit(MWh)

Heat energy from heavy fuel oil               MWh        /           /           /           /                58.3                     2019 133,839.1                               489,946.6

Heat energy from natural gas                  MWh    387,254.1   396,071.7   324,766.3   350,204.7          321,316.4                  2021 158,367.2                              485,218.0

Heat energy generated by biogas from

                                              MWh     1,318.9     1,367.1     1,136.0      931.0             803.6

sewage plants

                                                                                                                                            Total consumption              Total consumption

                                                                                                                                            of power                       of heat

Heat energy from coal                         MWh        /           /           /       22,120.8           67,716.3

                                                                                                                                      Energy Consumption Breakdown in 2022

Heat energy from biomass fuel                 MWh     10,167.5   28,966.4    62,223.2    60,954.5           53,013.2                  Indicators                   Unit            2022

                                                                                                                                      Percentage of

                                                                                                                                                                    %             100%

Heat from district heating facilities (with                                                                                           green electricity

                                              MWh    77,829.6    66,877.9     57,111.4   61,353.0           66,721.3

standard heating systems)

                                                                                                                                      Natural gas                  Nm3         41,883,659.6

                                                                                                                                      Diesel                       Litre        266,025.6

Total heat consumed at the brewery            MWh    479,084.4   493,283.1   445,237.0   495,563.9         509,629.2

                                                                                                                                                                               Chongqing 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

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.

                                                                                                                                                                                                                           Every year, using HFC-free refrigerants

refer to the "ZERO Packaging Waste" section of this                     our breweries, leading to a reduction of 2.24 tonnes                     By implementing hydrofluorocarbon (HFC)-

                                                                                                                                                                                                                           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

                                                                        with more environmentally-friendly lithium-ion                           2021, we initiated the energy-saving fridge project,

                                                                        ones. We also collaborate with logistics suppliers to                    procuring approximately 18,000 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.

  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            78,209.8         79,990.6                    65,589.8                       70,727.3                    64,893.1

     CO2 emissions from the use of coal                                                 tCO2e                /                /                           /                          7,533.5                     23,061.5

                                                                                        tCO2e

     CO2 emissions from district heating facilities (with

     standard heating systems)

     CO2 emissions from the heat energy consumed                                        tCO2e            101,762.5        99,652.8                    82,380.6                      96,298.6                    107,586.8

     CO2 emissions from the use of electricity                                          tCO2e                /                /                           /                         39,594.5                     84,311.1

     Total CO2 emissions from factories                                                 tCO2e            101,762.5        99,652.8                    82,380.6                      135,893.1                   191,897.9

     CO2 emissions from refrigerants                                                    tCO2e             3,773.2          3,728.9                     6,951.8                       10,753.7                    1,646.1

     GHG emissions (Scope 1) 2                                                          tCO2e            82,653.8         83,719.5                    72,541.6                      89,014.5                     89,616.9

     GHG emissions (Scope 2) 3                                                          tCO2e            22,881.9         19,662.1                    16,790.8                       57,632.3                   103,927.2

     GHG emissions (Scope 1+Scope 2)                                                    tCO2e            105,535.7        103,381.6                   89,332.3                      146,646.8                   193,544.0

                                                                                                                                  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             Our total CO2 emissions in 2022 decreased    at our breweries

 of fossil fuel-based thermal             by 225,000 tonnes compared to 2015.                                                   Fully achieved

 energy (or heat generation) with

 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 157,142 MWh green electricity was   sources

                                          consumed in 2022                                                                      Fully achieved           30% reduction in value chain

                                                                                                                                                         carbon emissions(compared

                                                                                                                                                         to 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

 Reduce emissions from growing                                                         emissions

                                          measurement results showed a 15%

 and processing raw materials,                                                                                                  Fully achieved

                                          decrease compared to 2015, and a new

 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-

                                                                                       Using low-climate-impact cooling

 environmentally friendly                 saving fridges, reducing final energy

                                                                                       systems

 refrigerants                             consumption in cooling by 10% every year

                                                                                                                                Fully achieved

Fully           Partially      Not

achieved        achieved       achieved

                                                                                                                                     Chongqing 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                   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

                                                                                                                  mitigating global warming and safeguarding                  sustainably sourced by 2030

growth, climate change, and overuse of farmland.       support to local farmers by helping them to bear the

                                                                                                                  biodiversity. We support forest conservation

In light of these challenges, we are committed to      risks and costs associated with the transformation

                                                                                                                  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        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

                                                                                                                  risk of deforestation from over-consumption

                                                                                                                  and over-harvesting.

practices and sustainably sourcing them to 100% by     quality and stable agricultural supply chain, and

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 190,000 tonnes of spent                     during the production and use, and effectively reducing the

system methods to unleash their potential. We also reuse     grains and 1,660,000 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"

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

products, facilitate local economic development, and reduce

the negative impact on human and labour rights in farming.

                                                                              hops

                                                                                                     Localized

                                                                                                   procurement

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.

                                                                              malts

             ZERO Farming Footprint

             OUR TARGETS

                                                                                                                                                    Chongqing Brewery Environmental, Social & Governance Report   ZERO PACKAGING WASTE   23

              ZERO

              Packaging                                   INNOVATING FOR MORE

              Waste                                       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

                                                                                                                      Reducing the thickness of the cap metal

economic benefits to the Company.                         materials to the environment.

                                                                                                                      and the liner compound weight

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-                                                                              Kronenbourg 1664 glass bottles by around

                                                                                                                      Reducing the thickness of aluminium cans

Our targets also include collecting and recycling         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    reduction in weight, as well as a reduction of over

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-

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 3,800 tonnes and lower carbon emission by

                                                          approximately 3,100 tonnes per year. At present, we    Use of Packaging Materials and Related Data

SUSTAINABLE PACKAGING                                     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                                                                                                                                             consumption by about

                                                          carton suppliers over the next two years in batches.   Indicators                         Unit       Data of 2022

sustainable packaging and continuously improving our

packaging portfolios to reduce packaging materials"

                                                                                                                 Metal                            tonnes           25,452

environmental impact.

                                                                                                                                                                                       reducing carbon emissions by

                                                                                                                 Glass                            tonnes          546,641              approximately

                                                                                                                 Plastics                         tonnes           26,514

                                                                                                                 Paper                            tonnes          113,112

                                                                                                                 * 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 the

                                                                                                                                                Chongqing 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 2022

                                                                   beer bottle manufacturers

of packaging materials. Starting with data analysis,

                                                                   Promote the trade-in of plastic pallets              Number of

we identify the vulnerable areas of recycled product                                                                    returnable

packaging bottles, referred to as "bottle return", analyse                                                             glass bottles       /           3,202,814,016.0

                                                                   Provide 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

                                                                   Increase deposits for beer barrels and plastic       Number of

to continuously promote the return of bottles by                                                                       glass bottles

distributors and bottle return merchants, reducing the             pallets                                              returned to        /            2,711,441,249.0

                                                                                                                       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

                                                                                                                                             Chongqing 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

                                                                                                                                                      consumption

development of all living things on the earth. It is   equipment transformation to recycle the wastewater                                            per hl of beer

not only indispensable for the agricultural products   generated in the production process. In achieving the                                       produced (hl/hl)

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                                         2.48

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                                                                                                                                                  increased from

                                                       WASTE

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 washers,recycling packaging

risk breweries, we partner with experts, NGOs and      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                                                                                                     We consumed

                                                       water compared to 2015, which is equivalent to

The Company values the reasonable use of water         the amount of water contained in 1,000 standard                                 million 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

We strictly abide by the Water Law of the People"s

Republic of China and other laws and regulations.

The Company actively improves water efficiency

                                                                                                                             Chongqing 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

   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 50,000 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

                                                   saved a total of 130,696 tonnes of water. In                       2.6

In order to reduce the waste of water resources,   2023, the company will Implement the project

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

                                                                                                       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                      Wusu

                                                                                                                                                  Chongqing Brewery Environmental, Social & Governance Report ZERO WATER WASTE   30

Data on Water Resources

     Indicators                 Unit                 2022                        2021                        2020             2019                    2018

                            cubic

  Own boreholes

                            meters

                            cubic

  Municipal water

                            meters

                            cubic

   Surface water

                            meters

                            cubic

  Total water use

                            meters

    Total water             cubic

   consumption              meters

               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                                                                                      50% reduction in water usage

                                                                                                                            water usage at our

              in more efficient water treatment                                                                                                                                        at our breweries

                                                                                                                            breweries

              and bottle washers                              Water usage efficiency decreased from 3.9 hl/hl in 2015 to                                     Fully achieved

                                                                                                                                                                                       Water usage efficiency of 2.0

                                                                                                                                                                                       hl/hl in the Company and 1.7

                                                              Launched the "Lighthouse" water-saving project at Dazhulin

                                                                                                                            Explore going below                                        hl/hl at breweries in high-risk

              Roll out water recycling                        Brewery

              treatment plants at breweries in

                                                                                                                            breweries in high-

              high-risk areas                                 Saved over 2.07 million kilolitres of water in 2022

                                                                                                                            risk areas                       Fully achieved            100% replenishment of water

                                                              compared to 2015

                                                                                                                                                                                       consumption at breweries in

                                                                                                                                                                                       high-risk areas

   Fully            Partially          Not

   achieved         achieved           achieved

                                                                                                                                        Chongqing 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

                                                                                                                         and culture.

packaging and brand activations, 100% of our markets          PROMOTING SAFE DRIVING

run partnerships to support responsible consumption,

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

                                                              Tianchang, Yinchuan, Yancheng, carried out that all

ENCOURAGING                                                   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

                                                                                                                         Local Government Officials Visiting Yancheng Brewery

and healthy drinking culture.                                 after 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

                                                                                                                                        the Group"s objective of having "

has actively enriched its product categories, and

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                    <0.05%vol                      AFB               Chongqing          process to achieve an alcohol content of 0.0%       Beer" standard by the National Wine Industry

                                                                                                                     while maintaining the flavour of ordinary beer,     Association in 2021, and contributed our own

     WFSM Lemon-flavoured Low-                                                                     Huizhou,          meeting consumers" demand for AFBs and              efforts to standardize the market and promote

           alcohol Beer                                                                           Guangdong          providing a product guarantee to promote            beer innovation and achieve high-quality

     Jolly Shandy Lemon-flavoured                                                                  Huizhou,          the concept of responsible drinking. We also        development of the industry.

            Low-alcohol Beer                                                                      Guangdong

                                                                                                                                      Chongqing Brewery Environmental, Social & Governance Report ZERO IRRESPONSIBLE DRINKING   33

INFORMING AND EMPOWERING CONSUMERS

To better inform consumers of our brews and promote         drinking" on our product introduction pages on online

responsible consumption, we are committed to                sales platforms, implementing more responsible

                                                                                                                       CASE     TUBORG LAUNCHED RESPONSIBLE DRINKING INITIATIVES

responsible marketing and providing consumers with          marketing practices.

product information that is clear, specific and reliable.

                                                            Training on responsible marketing                          Tuborg launched several responsible drinking

Information on ingredients                                                                                             initiatives in 2022. These initiatives organising

                                                            We encourage a responsible drinking culture and            beer carnivals and music festivals and setting

In compliance with the relevant provisions of the           behaviour. We require 100% marketing-related               up engaging and ingenious games at the

Group"s Marketing Communication Policy , we indicate        employees to complete the study and training of            booths to help the public and consumers better

the real product ingredient information, shelf life,        the Marketing Communication Policy during their            understand responsible drinking and increase

alcohol content, product standards and grades on            entry. This training should be reviewed annually to        public awareness.

the labels, making it easy for consumers to access          ensure familiarity with requirements of the Company

information and make informed choices.                      on product marketing wording. We also attach the

                                                                                                                                                                           Games at the Musical Festivals Held by Tuborg

                                                            Marketing Communication Policy to distributor

Clear messaging                                             contracts and require 100% distributors to strictly

                                                            implement our responsible drinking initiative.

In order to help more consumers understand the

meaning of responsible drinking and the dangers of          Campaigns on responsible drinking

excessive drinking, we have labeled all our products

with the words "Excessive drinking is harmful to            We actively deepen our customers and consumers"

health" and promoted rational consumption behavior          understanding of the responsible drinking initiative. We

among consumers. At the same time, we actively              promoted responsible drinking publicity and advocacy

promote the addition of labels such as "Pregnant            by beer festivals, music festivals and other forms, to

women and minors are prohibited from drinking" and          enhance the public and consumers" awareness of

"No driving after drinking" on our products, and have       rational drinking practice.

added messages such as "Say no to drunk driving"

and "Pregnant women and minors are prohibited from

                                                                                                                       Carnival Activities Held by Tuborg

                                                                                                                Chongqing Brewery Environmental, Social & Governance Report ZERO IRRESPONSIBLE DRINKING   34

NATIONAL

RESPONSIBILITY

DRINKING AWARENESS

WEEK

Since the establishment of the National Responsible             vigorously promote concepts such as "no drinking for               GAI Zhouyan, Ouyang Jing, VAVA, Tuborg Music Alliance

Drinking Awareness Week by the China Alcoholic Drinks           minors", "do not drink and drive" and "moderate drinking",         Bridge, Kungfu-Pen, and Nachiwolf, Tuborg"s special

Association in 2015, the Company has participated for           helping consumers make responsible consumption choices.            ambassador Jinx Zhou, and "Ji Shi Xing Le" Ambassador

Civilization Office, Chongqing Public Security Bureau Traffic   During the eighth National Responsible Drinking                    Zhang Yanqi, to shoot advocacy videos together, promoting

Management, Chongqing Motorist Association, Chongqing           Awareness Week from December 26, 2022 to January 2,                responsible drinking concepts such as "caring for growth,

Liquor Management Association, and other units to               2023, the Company invited Tuborg brand spokespersons               no drinking before adulthood" and "do not drink and drive".

                                                                                                                               Chongqing Brewery Environmental, Social & Governance Report ZERO IRRESPONSIBLE DRINKING   35

           ZERO Irresponsible Drinking

           OUR PROGRESS & TARGETS

   Planned Actions for 2022            Progress in 2022                                      2022 Targets                          Status                  2030 Targets

      Continue to roll out age and        100% "excessive drinking is harmful to health"

      ingredients symbol labels on        responsible drinking messaging through                                                                           100% responsible drinking messaging through

                                                                                             messaging through packaging and

      our all alcohol and alcohol-        packaging and the content of such messaging                                                                      packaging and brand activations

                                                                                             brand activations

      free extensions                     will be enriched in the future                                                           Fully achieved

      Develop consumer campaigns

                                          Some distributors have been informed of the

      and expand responsible                                                                 Run partnerships to support                                   100% of our markets run partnerships to support

                                          requirements for conducting responsible drinking

      drinking partnerships across                                                           responsible consumption                                       responsible consumption

                                          campaigns

      our markets                                                                                                                  Fully achieved

                                          Launched Chongqing 0.0% Beer                                                                                     100% availability of alcohol-free brews (AFBs)

      Explore the development and

                                                                                             Offer AFBs

      launch of AFBs

                                          Have launched three kinds of alcohol-free or                                                                     35% of our brews from the Company are low-

                                          low-alcohol brews                                                                                                alcohol or alcohol-free

Fully        Partially      Not

achieved     achieved       achieved

                                                                                                                                       Chongqing Brewery Environmental, Social & Governance Report ZERO ACCIDENTS CULTURE     36

              ZERO

              Accidents

              Culture

At the Company, we prioritize the health and              the Environmental Health and Safety (EH&S)

safety of our employees and contractors on-site.          Policy and the Environmental & Occupational

We follow strict safety standards in our operations,      Health Management Manual, to continuously                   The SHAPE assessment system

designed to keep everyone safe at work in                 improve the safety management systems.

breweries, warehouses, offices, and on the road.                                                                      The Safety and Health Assessment Program Excellence (SHAPE) is our comprehensive EHS

                                                          Management system certification

                                                                                                                      management system that includes 63 procedures related to EHS management for health,

To this end, we are committed to achieving the                                                                        safety, and environmental issues. Its purpose is to continuously bolster the health and safety

ZERO Accidents Culture ambition set by the Group,         During the reporting period, we ensured that

                                                                                                                      management of each brewery. We update and upgrade the system every year according to

with the goal of achieving ZERO lost-time accidents       100% of our breweries have certified ISO 45001              actual needs and conduct system audits at all breweries annually.

by 2030. Ensuring the health and safety of                occupational health and safety management

employees in work is a core value that we uphold          systems. Additionally, we conducted an annual

in our business practices, and we strive to provide a     internal audit and a three-year external audit cover        SHAPE EHS maturity assessment system

safe and healthy work environment for everyone at         100% of our breweries to help achieve our goal of           Through the EHS maturity assessment system, we assess the maturity in four aspects: EHS

all of our operating locations.                           "ZERO Lost-time Accidents".                                 management system and structure, safety and health indicators, environmental indicators, and

                                                                                                                      culture and awareness. In assessing the maturity of safety and health indicators, we audit and

                                                                                                                      improve the indicators such as high-risk operating procedures, traffic safety, protective measures,

PROGRESS TOWARDS ZERO                                                                                                 occupational health, basic safety, and toxic substances. This assessment system can effectively

ACCIDENTS                                                                                                             enable us to identify our deficiencies in EHS system management and guide us in making

                                                                                                                      further improvements.

Upholding the philosophy of "life first, safety first",

the Company constantly improves the safety                                       ISO 45001 occupational health        SHAPE Self-assessment and rectification mechanism

                                                                                 and safety management

management system, actively carries out various                                                                       Every year, relevant employees are required to conduct a COM self-assessment on relevant

                                                                                 systems certification

safe production practices, and continues to improve                                                                   procedures and health and safety measures. By reviewing their own practices, facilities and

safety awareness and emergency management                 Internal assessment                                         equipment to ensure they meet the requirements of the mechanism, employees identify items

capabilities in order to comprehensively consolidate                                                                  that need correcting until it is ensured that all work practices comply with our occupational

its foundation and level of safety management.            In health and safety management, we have                    health and safety management system.

                                                          employed Carlsberg"s COM standard for centralised

SAFETY MANAGEMENT SYSTEM                                  and standardised management and implemented the

                                                          SHAPE assessment system, which consists of the EHS

We strictly abide by relevant laws and regulations        maturity assessment system and a self-assessment       To implement our ambition of a ZERO Accidents          executives, including the president, VP, and GM at

such as the Law of the People"s Republic of China         and rectification mechanism. This enables us to        Culture, we require the management to lead             each business unit to progress on "ZERO Lost-time

on Work Safety and the Law of the People"s                discover and repair defects and loopholes in the EHS   by example, and call on the participation of           Accidents". This incentivises them to enhance their

Republic of China on Prevention and Control of            system in a timely manner, and continuously update     all employees. To ensure the progress towards          awareness and further lowering risks in health and

Occupational Diseases. We also refer to the Group"s       and improve the EHS management system to ensure        this goal, we have also set KPIs for everyone in       safety.

Carlsberg Operation Manual (OCM) to formulate             that it meets the needs of the Company"s growth and    the Company, and we tie the remuneration of

                                                                                                                                            Chongqing Brewery Environmental, Social & Governance Report ZERO ACCIDENTS CULTURE   37

MANAGING SAFETY RISKS

In managing occupational health and safety,              Lowering the risk of traffic accidents:

we follow our occupational health and safety             To prevent traffic accidents in breweries caused

management system and employ various                     by mixed traffic flows of people and vehicles, we

measures, such as:                                       developed a three-section division plan that divides       safety inspections made by           safety measures optimised

                                                         each brewery into pedestrian-free area, vehicle-free       line managers

Offering personal protective equipment                   area, and pedestrian-vehicle mixed area based on the

(PPE)                                                    different functions of each area of the brewery. This

                                                         effectively reduced the area where pedestrians and

we provide employees with PPEs to protect their          vehicles are mixed together, significantly reducing the

head, face, hands, feet, and respiratory-protecting,     risk of traffic accidents.

anti-collision and anti-cut equipment, to protect

their health and safety.

Conducting safety inspections                            Transformation of ammonia refrigeration systems:

                                                         According to the safety production requirements of

We strictly manage the operating specifications of

                                                         ammonia process, refrigeration system specifications

employees. In 2022, the Company has set a target

                                                         and other relevant rules, we carried out a

of conducting inspections on potential unsafe

                                                         comprehensive and systematic risk identification of

behaviours of each employee 6 times per year. We

                                                         our ammonia refrigeration systems, and upgraded

actively carried out the inspections. As of the end of

                                                         equipment and improved management efforts for

the reporting period, Line managers made 54,542

                                                         system safety, hardware, and operation specifications

safety inspections and optimised 34,581 safety

                                                         to reduce accidents.

measures, which exceeded our annual target. We

achieved a 95% completion rate of potential safety                                                    NH 3

hazards investigation and rectification.

                                                                                                                    Transformation of Ammonia Refrigeration Systems

Upgrading facilities and equipment

                                                         Reducing falls:

We actively promoted the improvements and

                                                         We upgraded standard platforms, horizontal lifelines,

upgrades of facilities and equipment for further

                                                         and installed anchors with sufficient strength for

safety. In 2022, we made our efforts in three major

                                                         safety belt suspension for high-altitude operations,

areas, namely, lowering the risk of traffic accidents,

                                                         reducing the unsafe factors of high-altitude operations.

transformation of ammonia refrigeration systems,

and reducing the risk of falls, to continue to reduce

EHS risks and improve risk prevention and control

in key areas.

                                                                                                                    Transformation of High-Altitude Operations Equipment

                                                                                                                   Chongqing Brewery Environmental, Social & Governance Report ZERO ACCIDENTS CULTURE   38

TRAFFIC SAFETY

IMRPOVEMENT AT

BREWERIES

In crowded factories, the risk of traffic accidents is        To ensure separation, we set up extensive vehicle-free             We also optimised the time management of the

extremely high. To reduce the risk of traffic accidents       and pedestrian-free areas. In the pedestrian-vehicle mixed         pedestrian-vehicle mixed area. For a certain period each

in breweries, we have established an on-site traffic risk     area, we have installed guardrails to prevent employees            day, we only allow either pedestrians or vehicles to use

control mechanism through which the responsibilities of       from entering the driving lanes. We advise employees to            this area. Furthermore, we have deployed traffic guides

different departments are implemented to avoid mixed          choose safe lanes only for pedestrians for further safety.         at high-risk locations to improve traffic efficiency while

vehicles and pedestrians flows, thus reducing traffic risks   Additionally, we have also installed several pedestrian            safeguarding people"s safety.

for employees.                                                detection systems that sound alarms to passing vehicles

                                                              when pedestrians cross the zebra crossing.

                                                                                                                                                                Chongqing Brewery Environmental, Social & Governance Report ZERO ACCIDENTS CULTURE   39

INSTILLING A SAFETY-FIRST MINDSET

Considering the requirements of laws and                                       To protect the occupational health and personal                                                                                Drill on six kinds of high

regulations and the characteristics of different posts,                        safety of employees, we regularly carry out multiple                                                                           safety risk aspects

we have developed a sophisticated safe production                              and multi-category emergency drills and Safety

training system. The system includes a training                                Month activities every year. In 2022, we carried

portfolio with 30 courses covering topics such as                              out a month-long safety production promotion

hazardous waste management, chemicals handling                                 campaign, and we performed exercises related to

and storage, and mechanical protection safety. We                              six high-risk aspects, including hydrochloric acid

set up internally development and certified TTT                                leakage at sewage treatment stations, fire and dust

trainers4 and also provide training on 32 specific                             explosion accidents at raw material feeding ports,

topics to ensure that employees are familiar with                              emergency rescue for limited space operations, and

safety management requirements throughout the                                  liquid ammonia system leaks. These drills have

entire production process.                                                     significantly improved employees" ability to respond

                                                                               to emergencies.

      CASE        SAFE PRODUCTION MONTH ACTIVITIES HELD AT DAZHULIN BREWERY

       To promote a "Zero Accidents Culture", the                              For the Safety Day in 2022, by the way the             on themes such as ammonia leakage and fire                 participating in LSR safety red line regulations

       company holds an annual "Safety Day" event                              management teams at all levels lead, all breweries     evacuation to enhance employee safety awareness            awareness training and on-site practical

       on December 12th, and has been carrying out                             organized safety video learning and safety-themed      and create a safe production atmosphere. The               training to strengthen their understanding of

       related activities in various breweries for 12                          activities for all employees in the factory and        factory area also carried out a health and safety          safety behaviors.

       consecutive years.                                                      office areas. We also conducted emergency drills       campaign at all levels, with all employees

       Ammonia spill disposal emergency drill of Safety Day of Yancheng Brewery                                                       The site of Safety Day activities of Yancheng Brewery

                                                                                                                                                         Chongqing Brewery Environmental, Social & Governance Report ZERO ACCIDENTS CULTURE   40

SOPHISTICATED EMERGENCY RESPONSE

MECHANISM

We prioritize the prevention of work-related injuries in our             Our various measures in occupational health and safety management mainly include:                                 Indicators            Unit            2022

operations. We have established a dedicated emergency

response mechanism to address such incidents promptly.                   Organizing physical check-ups               Monitoring occupational         Conducting health trainings

                                                                                                                                                                                            Number of lost-

This mechanism involves analysing the causes of the                                                                  hazards                                                               time accidents of       /               1

                                                                                                                                                                                              employees

accidents and delivering effective solutions to enhance                  Employees in positions exposed to           By enhancing the                We provide training for

occupational health and safety management which                          occupational hazards have undergone         monitoring and evaluation       employees on various topics

would avoid similar incidents from happening again, thus                 pre-job, on-job, and off-job occupational   of occupational hazard          such as first aid, basic safety         Number of

                                                                                                                                                                                            employee fatal         /               0

mitigating the risk of future occurrences.                               health check-ups in accordance with         factors, identifying            knowledge, seasonal disease              accidents

                                                                         relevant national laws and regulations.     occupational hazard             prevention, health maintenance,

OCCUPATIONAL HEALTH                                                      We also provide benefits such as pre-       positions and factors, we are   in order to promote awareness

                                                                                                                                                                                            Number of lost-

                                                                         employment and annual physical              able to effectively prevent     about living a healthy lifestyle.     time accidents of       /               1

We are committed to protecting the occupational                          exams for all employees.                    occupational diseases.                                                   contractors

health of employees and have formulated internal

management systems such as the Occupational Health                                                                                                                                            Number of

                                                                                                                                                                                            contractor fatal       /               0

Management Procedures and the Employee Health                                                                                                                                                  accidents

and Happiness Procedure s to ensure employee health

is protected. Additionally, we have developed the

Regulations on Safety Red Lines, which clearly stipulates

of safety issues in the production process to protect

employees" occupational health and safety.

   Number of lost-time accidents5 of employees

                                                                                                                                                                                 Occupational

                                                                                                                                                                                 Health

                    (Year) 2018             2019          2020          2021          2022

                                                                                                                        Chongqing Brewery Environmental, Social & Governance Report ZERO ACCIDENTS CULTURE   41

           ZERO Accidents Culture

           OUR PROGRESS & TARGETS

    Planned Actions for 2022                                 Progress in 2022                                         2022 Targets                    Status             2030 Targets

    Continue to improve occupational health and safety

    management systems and conduct internal and external

                                                             health and safety management systems certification

    audits on a regular basis

                                                             In 2022, the number of employee lost time accidents

    Equip employees with protective equipment and

                                                             decreased to 2, 92% reduction from 2018

    continue to upgrade safety facilities and equipment

                                                             There were no employees or contractors fatalities

                                                                                                                      Reduction in accident rate

                                                                                                                                                           Fully          ZERO lost-time accidents

                                                                                                                            year on year

                                                                                                                                                         achieved

                                                             A sophisticated safety production training system has

    Provide systematic safety training for employees         been established, and a safety production training

                                                             portfolio of 30 courses has been constructed

                                                             Line managers made 54,542 safety patrols and

    Carry out special safety rectification and improvement   optimised 34,581 safety measures, which exceeded the

    efforts targeted at safety risks                         annual target. The completion rate of potential safety

                                                             hazards investigation and rectification reached 95%

Fully         Partially      Not

achieved      achieved       achieved

                                            Chongqing Brewery Environmental, Social & Governance (ESG) Report Six TTZAB Ambitions   42

KEY FOCUS AREAS

In line with TTZAB, we are also committed

to conducting green operations, improving

products and services quality, protecting

and caring for our employees, promoting

the growth of partners, ensuring

compliance and independence in our

management,and fulfilling our corporate

social responsibility.

Emissions Management                   43

Products and Services                  46

Diversity, Equity & Inclusion          50

Responsible Sourcing                   59

Community Engagement                   60

Compliance Management                  61

                                                                                                                                                  Chongqing Brewery Environmental, Social & Governance Report EMISSIONS MANAGEMENT       43

EMISSIONS

                                                                       WASTEWATER

MANAGEMENT                                                             MANAGEMENT

We have always been aware of our environmental                         The Company complies with national and local

                                                                                                                              CASE     WASTEWATER RESOURCE UTILISATION

protection responsibility. We actively pursue the                      sewage discharge standards and takes stringent

sustainable development of the environment and                         measures to control the risks in sewage discharge.     In the wastewater treatment industry, the mixed wastewater to be treated often has a low and

resources in our management and operations.                            We have equipped all of our breweries with their       insufficient level of "carbon source" to meet the biochemical reaction demand. Therefore, an additional

We are committed to establishing a sound                               own sewage treatment stations, where sewage            "carbon source" is required.

environmental management system, complying                             is treated and discharged up to standard after

                                                                                                                              In December 2020, the Ministry of Ecology and Environment and the State Administration of Market

with the Group"s Environmental Policy 6. We                            the anaerobic and aerobic treatment processes.

                                                                                                                              Supervision and Administration jointly revised the "Pollutant Emission Standard for the Beer Industry"

strictly manage waste and exhaust emissions                            Additionally, we have installed automatic monitoring   (GB 19821-2005). The amendment specifies that wastewater from alcoholic beverage enterprises can be

while minimising noise impact. In 2022, no major                       facilities at our breweries to monitor discharge       a stable and high-quality carbon source for wastewater treatment plants and can be used as a synergistic

pollution incidents occurred, and all our breweries                    indicators in real time. To further enhance the        carbon source. The new policy allows alcohol manufacturing enterprises and downstream sewage

are certified to the ISO 14001 environmental                           efficiency and efficacy of sewage treatment, Yibin     treatment plants to sign legally binding written contracts to agree on the concentration limits of water

                                                                                                                              pollutant emissions. This agreement forms the basis for environmental supervision and enforcement.

management system (EMS) standard.                                      Brewery has partnered with Veolia, a professional

                                                                       third-party sewage treatment company, to design        With the support of this policy, our company has been actively seeking opportunities for wastewater

                                                                       and deploy its sewage treatment station.               resource recovery in various regions. In December 2022, Carlsberg Tianmu Lake Brewery (Jiangsu)

                                                                                                                              signed an agreement with a local town wastewater plant for the resource recovery of beer production

                                                                                                                              wastewater. This agreement saves the company RMB600,000 per year in wastewater operation costs,

                                                                                                                              and the wastewater treatment plant RMB400,000 per year in carbon procurement costs.

The Sewage Treatment Station at Yibin Brewery

                                                                                                                              The signing ceremony of Carlsberg Tianmu Lake Brewery wastewater connecting to Dai Tou wastewater plant

                                                                                                                                     Chongqing Brewery Environmental, Social & Governance Report EMISSIONS MANAGEMENT   44

SOLID WASTE

MANAGEMENT

The Company strictly adheres to the Law of the        completed on the same day, we store it in designed

People"s Republic of China on the Prevention and      warehouses and ship it off as soon as possible.

Control of Environmental Pollution by Solid Waste ,

and implements waste management in accordance         Regarding hazardous waste, each brewery and                                                                                 of our breweries are certified

                                                                                                                                                                                  to the ISO 14001 environmental

with relevant laws and regulations. We strictly       responsible department collects, stores, and

                                                                                                                                                                                  management system (EMS) standard.

classify hazardous waste and non-hazardous waste      transfers it to hazardous waste warehouses

in our production and operations and have set up      according to their hazardous waste catalogues.

temporary warehouses to standardise the storage       We have equipped the ground of warehouses with

and disposal of solid waste.                          anti-seepage functions and stored all hazardous

                                                      waste on trays designed for containing liquids as

Non-hazardous waste is handed over to qualified       a supplementary measure to prevent leakage. We

recyclers for recycling and disposal, and we take     hand hazardous waste over to relevant qualified

strict measures such as anti-scattering, anti-        third parties for law-compliant disposal, and

loss, and anti-leakage to prevent environmental       maintain hazardous waste generation ledgers and

pollution in the non-hazardous waste warehouses.      transfer-for-disposal ledgers for effective follow-up.

If the shipment of non-hazardous waste cannot be

                                                                                                               No major pollution

                                                                                                               incidents occurred in 2022.

                                                                                                               Types of Pollutants in Wastewater and Related Data

                                                                                                                             Types of Pollutants                          Unit                   Data of 2022

                                                                                                                                  Ammonia                               tonnes                        17.1

                                                                                                                              Total phosphorous                         tonnes                        3.2

                                                                                                                               Suspended solids                         tonnes                        147.1

                                                                                                                COD of raw sewage from per hectolitre of beer            kg/hl                        0.3

                                                                                                                                produced

                                                                                                                Amount of sewage from per hectolitre of beer             hl/hl                         1.1

                                                                                                                                produced

                                                                                                                         Average COD of raw sewage                       g/m                       66,800.9

                                                                                                                            Total sewage discharge                   cubic meters                 3,052,268.7

                                                                                                                 Sewage that has been recovered, treated and            tonnes                      130,696

                                                                                                                                   reused

Storage of hazardous waste

                                                                                                                                 Chongqing Brewery Environmental, Social & Governance Report EMISSIONS MANAGEMENT   45

WASTE GAS                                            NOISE MANAGEMENT

MANAGEMENT

                                                     The Company places great importance on noise          Types of Pollutants in Waste Gas and Related Data

We adhere rigorously to the Law of the People"s      management and we have established policies

Republic of China on the Prevention and Control      such as the Noise Control and Hearing Protection      Total exhaust emissions

of Atmospheric Pollution and other relevant waste    Procedures. To minimise the impact of our noise, we

gas management regulations to ensure that            monitor the noise levels produced at our breweries

our emissions meet national and local emission       to ensure that our noise management meets

standards. The main sources of effluent production   national and regional standards. Additionally, we

                                                     have upgraded and maintained our equipment            Scoot (dust)

in our company are our treatment stations. To                                                                                                                                       NOx emissions

minimise our environmental impact and the impact     to reduce noise at its source and implemented

on surrounding communities, we collect and           measures such as noise isolation and separation.

dispose of the effluvium generated at the sewage     In 2022, we replaced some aging equipment at

treatment stations and ensure that its treatment     our sewage treatment stations, such as the Roots

meets the required standards.                        blower in Kunming, which effectively reduced the

                                                     noise impact.                                         SOx emissions

                                                                                                                                                S

                                                                                                                                                                                   Chongqing Brewery Environmental, Social & Governance Report PRODUCTS AND SERVICES   46

PRODUCTS AND

SERVICES

Customers" recognition is what drives us forward.

As a player in the brewing industry, the Company

has always been committed to offering high

                                                                                                                                                                                                                    of our breweries have all passed the 2022

quality products and services.                                                                                                                                                                                      Annual COM Compliance Audit

PRODUCT QUALITY

ASSURANCE                                                                                                                                                                                                           100%

                                                                                                                                                                                                                    of our breweries have passed the certification

The Company takes responsibility for ensuring                                                                                                                                                                       of both the ISO 9001 quality management

                                                                             the ISO 9001 Quality Management                                                                    Notice of Qualification for

excellent product quality and food safety In product                                                                                    HACCP Certification                                                         system and HACCP

                                                                                    System Certification                                                                       Supervision and Examination

quality management, we follow the Carlsberg

Operational Manual (COM) formulated by the Group

                                                                            CONDUCTING PRODUCT QUALITY

with reference to the FSSC 22000 Food Safety

                                                                            TESTING

System Certification and the Hazard Analysis Critical

Control Point (HACCP). Our 27 documents and 389                             We have developed the Standard Operating                                     In addition to internal inspections, we mandated           of our products passed the internal quarterly

quality management rules form comprehensive                                 Procedures for Brews Quality Testing, and inspect                            our breweries to send their products to third-party        sampling inspections in 2022

quality management system standards, and we                                 incoming raw and auxiliary materials, semi-                                  inspectors for independent external assessments,

developed the Quality Management Manual                                     finished products and finished products of the                               which ensured that we are able to provide reliable and

to further refine the requirements. We require                              production. Each department of the production line                           high-quality products to our consumers. In 2022, our

our breweries to conduct annual quality COM                                 is required to conduct batch-by-batch inspections                            breweries sent 829 batches of products for external

compliance audits to ensure effective product quality                       of finished products according to our self-inspection                        inspections, and regulators on-site randomly selected      of our products inspected by independent

management.                                                                 standards. Only qualified products are permitted to                          another 52 batches for testing. The results of the         third-party inspectors and regulators passed

                                                                            be shipped off for sale. We have also established a                          inspections showed that 100% of our products met           the tests

From 2018 to 2022, the company and its breweries                            quality monitoring programme at our breweries to                             the required standards.

have all passed the annual quality COM Compliance                           identify and manage potential risks. This includes

Audit, and obtained the certification for both the ISO                      physicochemical testing7, encapsulation testing8,

                                                                            testing. In addition, we have also set up a testing

We have implemented a sophisticated quality                                 centre, which is responsible for conducting quarterly

management system that covers the entire                                    sampling inspections of beers from all 24 breweries. In

production process, from manufacturing and storage                          2022, we sampled 91 batches of products, all of which

to logistics, sales, and after-sales. Our focus on                          passed with a 100% qualification rate.

key management areas ensures that we meet our

consumers" high standards for quality.

                                                                                                                                                Chongqing Brewery Environmental, Social & Governance Report PRODUCTS AND SERVICES   47

ORGANISING BEER TESTINGS                                 PRODUCT RECALL MECHANISM                                    PRODUCT QUALITY TRAINING

We not only concentrate on ensuring product quality      We have formulated the Product Recall (Withdrawal)          We place great value on cultivating a corporate culture

and safety, but also endeavour to provide our            Management Procedures, and require our breweries to         that emphasises product quality, and therefore offer a       of production employees received training on

customers with consistently unique taste and flavours.   carry out product recall (withdrawal) drills on a regular   wide range of quality and safety training courses for        quality and food safety

Every month, our Beer Tasting Centre invites beer        basis to ensure the effectiveness and feasibility of the    employees across various positions.

sommeliers to taste our breweries" beer. In 2022, a      product recall procedures. In 2022, the Company did

                                                                                                                     Our quality management personnel attended

total of 674 beer samples were evaluated for taste.      not experience any incidents of product recalls due to

                                                                                                                     two training sessions on FSSC 22000 food safety

                                                         quality problems.

                                                                                                                     management system certification standards in 2022.

                                                                                                                     These sessions were designed to help quality managers

                                                                                                                     and system supervisors at each brewery improve their

                                                                                                                     management capabilities.

     Case     Mawangxiang Brewery conducted the product recall (withdrawal) drill

                                                                                                                     We regularly organised training sessions on quality and      We recognise that the quality of products provided

                                                                                                                     food safety systems, as well as COM compliance, for our      by our suppliers also has a significant impact on the

    In 2022, Mawangxiang Brewery carried out

                                                                                                                     production employees. In 2022, our breweries carried out     quality of our beer. Hence, we conduct annual product

    a product recall (withdrawal) drill. Using the

                                                                                                                     a total of 21,400.5 hours of training to 17,527 employees,   quality audits on our suppliers and provide training

    Enterprise Resource Planning (ERP) management

                                                                                                                     which accounted for 98.2% of the total workforce.            on quality standards and food safety requirements to

    system to locate any unqualified products and

    prevent their distribution to the markets. Strict                                                                                                                             further enhance their understanding of our company"s

    inventory checks were conducted on site to ensure                                                                                                                             product quality and food safety requirements, and to

    that the quantity and batches of related products                                                                                                                             improve product quality management.

    were accurately identified. With these measures,

    Mawangxiang Brewery was able to complete the

    product recall drill successfully.

     Mawangxiang Brewery Conducted Product Recall (Withdrawal) Drill

                                                                                                                                           Chongqing Brewery Environmental, Social & Governance Report PRODUCTS AND SERVICES   48

DELIVERING HIGH-                                        BOOSTING SERVICE EXPERIENCE

QUALITY SERVICES                                        To improve the service experience, we focus on strengthening digital marketing

                                                        experience and launching various online and offline customer activities. These efforts

Providing high quality services to our customers

                                                        aim to maintain positive interactions with consumers, improve brand awareness and

is one of our primary responsibilities. We focus on

                                                        build customer loyalty.

improving the customer experience by constantly

optimising our service quality, enhancing customer

feedback and interactions, and striving for customer

satisfaction.

EFFICIENTLY RESPONDING TO

CONCERNS                                                       More online sales                           Improved member                             Create an immersive                           Create surprise

                                                                  platforms                              interaction experience                        consumer experience                             experience

We solicit consumer’ feedbacks on our products

and services through various channels, including        We have reached strategic business      We have established an online membership          Using platforms such as immersive        In response to the changing

phone, WeChat, email, and more. To ensure that we       cooperation with well-known             mechanism that utilises a "one QR code            art experience halls, pop-up             consumer demands, we offer

handle customer complaints effectively, we have         online platforms such as JD             for one product + Mini Programme"                 stores, offline tasting sessions         customised packages designed

formulated the procedures for managing customer         Supermarket and Meituan Flash to        approach. Through the mechanism, we               during specific periods, we attract      for festivals, as well as artistic and

and consumer complaints related to both our             expand sales channels, providing        have built a member centre that can be            consumers in immersive on site           innovative packaging methods, to

products and breweries. We define, classify, report     consumers with real-time retail         quickly iterated and adjusted. We distribute      interactions and provide them with       further impress consumers with our

and evaluate customer concerns and send relevant        shopping experience.                    marketing materials through our official          a diverse range of consumption           brands.

personnel to conduct telephone interviews on critical                                           WeChat and Weibo accounts, as well as             scenarios and rich product

issues to convey customer opinions accurately to                                                through in-person promotional events. In          experience.

the relevant departments of the Company. Our goal                                               the Mini Programmes, bonus points/red

is to improve the quality of products and services                                              envelope rewards are provided to incentivise

continuously.                                                                                   customers to scan the QR codes. All these

                                                                                                efforts contribute to enhanced integrations

For different types of concerns, we have established                                            with our core customers.

different procedures to handle them and developed

targeted solutions to respond. In the case of

product quality concerns, we have established a

joint controlling management and implementation

mechanism involving by the Quality Management

Departments of both the Company and related

breweries. The breweries are responsible for product

testing and follow-up of special improvement actions

while the Company is responsible for regularly

summarizing collected quality concerns, developing

action plans, and tracking improvement effects to

create products that satisfy our customers.

                         Chongqing Brewery Environmental, Social & Governance Report PRODUCTS AND SERVICES   49

While continuously improving customer experience,         provide consumers with the opportunity to enjoy

we innovatively developed the F&B retail business,        wine through bars, grills and hot pots. through bar,

by building new consumption scenarios, enhancing          grill and hotpot, providing consumers with a diverse

interaction with consumers and upgrading service          and immersive through bar, barbecue and hotpot

system, which is regarded by the industry as an           scenarios to provide consumers with a diverse and

innovation in the integration of two industries           immersive brand experience.

(advanced manufacturing and modern service

industries).

We have launched "Jing A Taproom", "Wusu Big

Barbecue" and "Chongqing Brewery Hot Pot", which

    CASE     JING-A TAPROOM BREAKS DOWN THE BOUNDARY BETWEEN MANUFACTURING

             AND SERVICE INDUSTRIES

    By finding interesting brewing ingredients, cooperating with the industry, and introducing

    seasonal limited items, Jing-A brand is constantly innovating. We speed up the layout of

    "Jing-A Taproom" tavern to provide consumers with in-depth experience of beer culture and try

    innovative beer products. By the end of 2022, we have successfully opened 11 Jing-A tavern in

    Beijing and Shenzhen.

    "Jing-A Craft Brew" Tavern

                                                                                                                                                     Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   50

DIVERSITY, EQUITY

& INCLUSION

Our employees are the most precious partners, and

we are committed to building a workspace that is

diverse, equal and inclusive. We strive to care for

every employee, regardless of their background,

and provide them with ample training and

development opportunities to grow together with                                   Purpose                                      Pride

the Company.                                                                    We look back to                         We proudly trust our

                                                                                 move forward                                 brands

EMPLOYEES RESPECTING

AND BLENDING

We promote the corporate vision of diversity and

inclusion that is based on four pillars: global perspective,

diverse talent pool, inclusive leadership, and equal

                                                                                                   Performance

opportunities. We follow the Diversity and Inclusion

                                                                                                    We go above and

Policy issued by the Group to create a diverse and

                                                                                                        beyond

inclusive workplace for all employees.

We have been hiring and promoting employees only

based on their performances and strictly prohibit any

form of discrimination, bias or harassment based on

race, religion, disability, gender, marital status, age, social                                       Carlsberg"s

status, nationality, sexual orientation, or any other                                               Employer Value

factors that should not be considered by local laws. We

respect and value the unique qualities and characteristics

of each employee and are committed to creating and

encouraging an inclusive, supportive, fair, and transparent

workplace for all.

                                                                  Diversity, Equity and Inclusion (DE&I) are key priorities for the Company"s management

Our employer value, "Something"s Brewing", reflects our           efforts. In 2022, we focused on improving the four aspects of "diverse recruitment",

commitment to promoting diversity, equity, and inclusion          "young talents", "gender representation", and "inclusive leadership" to provide employees        DE&I Posters in the Office Area

in the workplace. We uphold these values and attract              with a more engaging and dynamic workplace.

more like-minded talents to the Company.

                                                                                                                                  Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   51

DIVERSE RECRUITMENT                                                                                                                                                       YOUNG TALENTS

We strive to promote diverse recruitment and strengthen                                                                                                                   To enhance our appeal to Generation Z, we have

talent attraction by using various channels such as                                    colleges and          localization                                                 conducted a six-month training programme

partnerships with universities and localised recruitment.                         universities cooperation      recruit                                                   focused on managing the new generation of

                                                                                                                                                                          talents. The training sessions cover topics such

We offer a range of opportunities for college students,                                                                                                                   as "communication and counselling for Post-95s

including construction internship base, guidance on                                                                                                                       employees in the digital era," "portraits of the

resumes, sponsorship activities, and joint construction of                                                                                                                new generation and their needs in workplaces,"

practice bases. Additionally, we provide job opportunities                                                                                                                and "activating Gen Z" to help managers better

to local residents and promote localised recruitment                                                                                                                      understand the younger employees and foster a

through channels such as local recruitment websites,                                                                                                                      more inclusive and harmonious workplace.

government special job fairs, local talent exchange

centres, and special recruitment events.                                                                                                                                  Additionally, we have organised various activities

                                                                                                                                                                          to show our care for younger employees, such as

                                                                                                                                                                          establishing youth clubs, hosting social events, and

                                                                                                                                                                          holding mobile game competitions. We value the

     CASE      LECTURE SERIES TITLED"INTERVIEWERS OF MANAGEMENT TRAINEES FROM                                 CASE       "CHONGQING BREWERY

               MULTINATIONALS TEACH YOU HOW TO DEVELOP A GOOD RESUME FROM THEIR                                          SESSION" CONTRIBUTES TO THE                      needs of young talents and encourage them to

               PERSPECTIVE"                                                                                              ENRICHMENT OF THE COMPANY"S                      inject vitality into the Company and provide more

                                                                                                                         TALENT RESERVE                                   innovative ideas.

      The "Interviewers of management trainees from multinationals teach you how to develop a good            On April 13, 2022, we established a "Chongqing

      resume from their perspective" series of lectures are a special programme in our collaboration with     Brewery Class" in collaboration with Chongqing              In 2022, we established the "Carlsberg China Young

      universities. In 2022, our company"s Human Resources Department interviewers provided customised        Mechanical and Electrical Vocational and                    Talent Empowerment League" and invited 80

      lectures from this series to students from Central South University and Jiangnan University. The aim    Technical University. The programme provided                trainers specializing in young talent development

      of these lectures was to provide students with consultations on how to highlight their advantages on    intensive training for 23 students over three

                                                                                                                                                                          to offer regular training and coaching to our young

      their resumes and improve their employability in preparation for future employment.                     months, followed by eight months of job rotations

                                                                                                                                                                          employees. We have also designed five training

                                                                                                              and paid internships, giving them valuable hands-

                                                                                                                                                                          programmes tailored to their unique areas of

                                                                                                              on experience. To support the students, we

                                                                                                                                                                          expertise to cultivate exceptional talent. For further

                                                                                                              assigned experienced employees as mentors,

                                                                                                              enabling them to gain further insights into the             information, please refer to the "Employee Training

                                                                                                              industry and providing a pool of skilled workers            and Development" section.

                                                                                                              for our company.

      The Site of "Interviewers of Management Trainees from Multinationals Teach You How to Develop a                                                                     Logo of the Carlsberg China Young Talent

      Good Resume from Their Perspective" Series of Lectures                                                 Students Group Photo of Chongqing Brewery Class              Empowerment League

                                                                                                                                              Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   52

GENDER REPRESENTATION

Carlsberg China is committed to establishing a                 such as the proportion of female employees,               encourage women to strive for greater independence

corporate culture that values diversity, equity                female promotions, and female turnover rates.             and constantly offer opportunities for them to

and inclusion. We have set a target: by 2027,                  Improvement measures will be implemented in               enhance their skills and become "experts" in their

female employees in middle-level and above                     response to any anomalies in the data, in order to        related fields. Through ongoing mutual learning

management positions should be up to one-third.                further improve gender diversity.                         and cooperation, our female employees continue to

                                                                                                                                                                                                 By 2027, female employees in

We conduct monthly analyses and evaluations                    We hold great respect for the achievements of our         improve their abilities, work together to overcome

                                                                                                                                                                                                 middle-level and above management

of the percentage of women in all job positions,               female staff and are dedicated to fulfilling their        emergencies and difficulties, and achieve collective yet                positions should be up to

with a particular focus on specific indicators                 needs across all level of our organisation. We actively   independent growth.

     CASE      LEADERSHIP OF FEMALE EXECUTIVES--EXPANDING RETAIL CATERING BUSINESS

    Sun Yi serves as the general manager of the Retail

                                                                                                                                                                                    Percentage of female employees

    Catering Department at our company. She has made

    significant contributions to the expansion of our retail

    catering business and has become a key backbone of

    our development due to her rich experience in FMCG and

    catering. We firmly believe that female leadership is a

    vital component of a first-rate company. Women possess

    unique traits such as affinity, empathy, resilience, and

    attention to detail, which play an important role in the

    Company"s growth.                                              Sun Yi, General Manager at the Company"s

                                                                   Retail Catering Department

     CASE      FACING DIFFICULTIES HEAD ON: QUALITY MANAGER DEDICATED HERSELF TO WORD

    Xie Yuanling, the current quality manager at Wanzhou

    brewery, has been transferred to and worked at four

    different breweries, continuously improving her work

    ability. In addition to her administrative responsibilities,

    Xie also works in the laboratories and provides after-

    sales services, demonstrating her versatility and valuable                                                                                                                      Percentage of female employees in middle-

    experience as a female manager. She compares every                                                                                                                              level and above management positions

    new work transfer to climbing a mountain, acknowledging

    that there may be obstacles and risks along the way, but

    the sense of accomplishment and purpose in her work at

    the top makes it all worthwhile.                               Xie Yuanlin, Quality Manager at Wanzhou

                                                                   brewery

                                                                                                                                            Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   53

INCLUSIVE LEADERSHIP

To create a corporate culture of diversity, equity          suggestions for revisions to the draft Guidelines, and      managers to think about how to engage in inclusive

and inclusion, we conducted a questionnaire survey          25 of them were accepted. The final version of the          communication and eliminate prejudice. The training

on DE&I among team managers and organised a                 Guidelines has already been officially released during      sessions were attended by directors and senior

workshop on the Carlsberg China Inclusive Leadership        the general staff meeting on February 15th, 2023.           managers in roles at L3 and above.                                     training sessions to address the

                                                                                                                                                                                               issue of unconscious bias and coping

Behaviour Guidelines in 2022. These efforts were

                                                                                                                                                                                               strategies were held

aimed at gaining a better understanding of managers"        To address the issue of unconscious bias that team

expectations on inclusive leadership and analysing          managers may experience, we conducted 6 training

the core behaviours that demonstrate the concept            sessions on coping strategies and tackling unconscious

of inclusive leadership. We received a total of 40          bias in 2022. Through discussions, we encouraged

   Discussions at the Workshop on the Carlsberg China Inclusive                       Training to Address the Issues of Unconscious Bias and Coping

   Leadership Behaviour Guidelines                                                    Strategies

                                                                                                                                         Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   54

EMPLOYEE TRAINING

AND DEVELOPMENT

The Company places great value on the development        transfer talents to open vacancies and support the          System for Young Talent Growth                               guidance and support. Mentors, trainers, and post-

of its employees. We continually improve our talent      steady growth of the Company.                                                                                            specific coaches meet with young talent every month

training system and provide employees with equal                                                                     We have developed a practical and suitable career            to exchange ideas and provide feedback on their

opportunities for promotion to support their growth.     EMPLOYEE TRAINING                                           development system for young talents. Our                    progress. Young talents are required to report their

                                                                                                                     management trainee programmes utilise a "10-20-              learning progress on a seasonal and annual basis,

                                                         We value the growth of our employees and have

CAREER GROWTH                                                                                                        70" learning framework and growth tracking system            ensuring that their growth is tracked effectively.

                                                         established a comprehensive talent training system.

                                                                                                                     to support young talents in areas such as career             Based on the progress made, job rotation plans, and

Talent is a valuable resource of any enterprise. We      We have established the Carlsberg China Training

                                                                                                                     development, physical and mental health, professional        future development goals, mentors and post-specific

have developed a fair and open selection mechanism       Academy, consisting of the Academy of Leadership,

                                                                                                                     competence, self-motivation, and self-discipline.            coaches provide suggestions to ensure effective

for employees using professional competence and          Supply Chain, Sales, Distributor, Marketing, Finance,

                                                                                                                     The training courses cover topics such as business           promotion of talent training.

performance as evaluation standards for promotion.       Information Technology, Compass, and Human

                                                                                                                     speeches, project management, data analysis, and                                 Employee training coverage

Talent evaluation meetings provide employees with        Resources. The training content provided covers daily

                                                                                                                     leadership training.                                                             reaching

promotion opportunities. We also encourage the           company management and business operations,

healthy flow of talents within the Company through

various methods such as talent inventory, job rotation

and short-term dispatch. We have developed an

                                                         with customised courses developed for different types

                                                         of employees. We have also implemented different

                                                         support measures such as partner programmes,

                                                                                                                     To further support the growth of young employees,

                                                                                                                     we also assign trainers to provide one-on-one                                    100%

Individual Development Programme (IDP) to promptly       mentor/coach programmes, challenging projects,

                                                         benchmarking market learning, short-term dispatch,              CASE      TRAINING CAMP FOR YOUNG TALENTS

                                                         and job rotations to help employees realise their self-

                                                         worth through multiple channels.                                 We have formulated a growth plan for young sales professionals, and in 2022, we selected 10 promising

                                                                                                                          talents to participate in the programme. The training was conducted in August., and upon its completion,

                                                                                                                          we designed an on-the-job practice plan for the sales professionals. Through our talent tracking system,

                                                                                                                          we monitored their progress on a monthly basis to help them enhance their skills and professionalism.

                                                                                                                          Our aim is to assist them in swiftly transitioning from students to professionals.

                                                                                              Talent Development

                                                                                              Project Support

                                                                                              Learning Resources

                                                                                              Corporate culture as

                                                                                              critical foundation         The 2022 Sales Professionals Sailing Training Programme

 Carlsberg People Growth Framework

                                                           Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   55

EMPLOYEE RIGHTS,

INTERESTS, AND CARE

We recognise that talents are what drive the Company

forward. Therefore, we cultivate a corporate culture

that values and respects our employees, and we

provide them with diverse remuneration and benefits,

organise a range of activities, and emphasise their

overall experience.

EMPLOYEE RIGHTS AND INTERESTS

We strictly adhere to the Human Rights Policy issued

by the Group, and we respect and value employee

voices while providing comprehensive protection

of their rights and interests. We are committed to

identifying potential issues and their adverse impacts,

such as discrimination, forced labour, child protection,

freedom of association and collective bargaining,

harassment, remuneration and benefits, health

and safety, and we have developed corresponding

prevention and mitigation actions.

Through the Letter on Carlsberg"s Employment Policy

to each employee, we are committed to not violating

the Group"s Human Rights Policy, such as forced

labour and child labour, during our employment

relationships. We have opened the “Speak Up” hotline

system so that employees can immediately report

any violations of their rights. For more information on

the “Speak Up” hotline, see the section on “Business

Ethics”.

In 2022, no incidents of discrimination, forced labour,

child labour, or harassment were identified in the

Company"s business operations.

                                                                                                                              Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   56

EMPLOYEE ENGAGEMENT

We highly value employee voices and have

established a variety of communication channels

                                                     CASE    THE COMPANY HOLD NATIONWIDE STAFF COMMUNICATION CONFERENCE

to enhance communication between management

and employees. These channels include face-to-       We organise national staff communication conferences on a quarterly basis to strengthen the direct communication between the management and employees.

face strategic forums with our president, HRBP       During these conferences, management directly interact with employees, shares company developments, listens to their feedback and questions, and takes an

interviews, line manager interviews, the Speak Up    interest in their feelings and opinions.

Helpline, and employee communication meetings.

These channels help to protect employees" rights

to know, participate, express themselves, and

supervise. Furthermore, they serve as effective

bridges for management to listen to the voices of

front-line employees and understand their needs.

We regularly conduct employee satisfaction

and engagement surveys, the "Employee Voice

Survey", every two years. In May 2021, a total of

response rate of 99.9%. The survey results showed

that our employee engagement score was 95.5,

higher than both the average scores at Carlsberg

                                                     National Staff Communication Conference in 2022

Asia and Carlsberg Group. We use the results

of these surveys to further improve our human

resource management efforts.

The employee engagement                              CASE    FACE-TO-FACE STRATEGIC

survey covered employees                                     FORUM WITH PRESIDENT

                                                     our president, elaborated the Company"s

                                                     development strategies and team goals

Survey response rate of

                                                     to employees, helping them gain a better

                                                     understanding of on Company"s direction,

                                                     guiding their work, and boosting their

                                                     enthusiasm and morale.

Employee recommendation rate of

                                                                                                                                        Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   57

REMUNERATION AND BENEFITS

We participate in research and benchmarking with                      salary competitiveness and performance results.

the FMCG industry to establish a comprehensive                        It encourages high performance while also

remuneration system. By taking into account                           considering payment levels.

                                                                                                                           Employee Welfare9

market trends and business development, we have                       At the same time, in addition to strict compliance

developed monthly/quarterly/year-end bonuses,                         with statutory benefits (e.g. social security,                                   Additional business insurance covering travel, accident, life and medical

timely incentives, innovation incentives and                          provident fund, statutory annual leave, etc.), the          Healthy Welfare

other recognition schemes to reward teams and                                                                                                          Physical examination

                                                                      company"s employees are also rewarded for their

individuals with outstanding performance. According                   performance. provident fund, statutory annual                                    Holiday money or gifts

to industry and market trends, we adjust the                          leave, etc.), we also provide our employees with

salary based on two dimensions: the employee"s                        diversified benefits:                                       Goods Welfare        Welfare liquor

                                                                                                                                                       Union gift benefits

                                                                                                                                                       Extra company leave

                                                                                                                                                       Xinjia hotline

                                                                                                                                                       Happy hour activity

                                                                                                                                  Work-life Balance

                                                                                                                                                       Sports club

                                                                                                                                                       Meal (canteen) benefits

                                                                                                                                                       Beer tasting event

                                                                                                                               Chongqing Brewery Environmental, Social & Governance Report DIVERSITY, EQUITY & INCLUSION   58

EMPLOYEE CARE ACTICITIES

We are committed to ensuring the well-being of our

employees. Each of our business units is equipped

with labour unions responsible for safeguarding        CASE     THE XINJIA PROGRAMME IN 2022                                            CASE     "CARLSBERG"S LOVE NAVIGATION" EMPLOYEES CARE EVENT

the rights and interests of our employees

fostering communication, and organising various        In 2022, we provided employees with interesting remote classes                    "Carlsberg"s Love Navigation" is one of the key focuses of the

activities. We provide comprehensive care and          each month. During the classes, psychological knowledge such as                   Company leadership expectations for organisational health. In 2022,

create a harmonious working atmosphere for our         communication skills, vacation syndrome, and emotional stability                  we launched a series of online activities for employees working

employees. In addition, we have organized a variety    were offered to employees, and more information was shared                        from home, such as online fitness, online singing events, virtual

of online care activities to help them adapt to the    through pictures and H5, etc.                                                     toasts, and online knowledge competitions, which aimed to alleviate

working from home and improve their happiness in                                                                                         psychological stress and help employees better balance work and life

work and life.                                         In addition, we also carried out the "Xinjia Program Carnival Event",             during remote working conditions.

                                                       providing employees with painting analysis, massage and other

Furthermore, we recognise the importance of our        special activities to further help them alleviate work fatigue and

employees" mental health. In 2018, we partnered        pressure.

with a professional psychological counselling

institution to launch the Xinjia program, an

employee care program. The Xinjia programme

leverages various interactive health activities to

provide employees with information on mental

health, helping them release stress and anxiety, and

engage in work with sound physical and mental

health.

                                                                                                                                                Chongqing Brewery Environmental, Social & Governance Report RESPONSIBLE SOURCING   59

RESPONSIBLE

SOURCING                                                                                                              PROMOTING RESPONSIBLE

                                                                                                                      PROCUREMENT

The Company is committed to establishing a                 We follow the principles of open, fair and impartial       We attach great importance to sustainable

long-term, stable, mutually beneficial and win-            procurement and standardise the management of the          sourcing. We enter into agreements with our                             of our material suppliers

win cooperative relationship with suppliers. We            procurement process and supplier selection, evaluation,    suppliers, including Carlsberg Supplier & Licensee                      certified to ISO 14001

integrate the concept of sustainable development           inspection, rectification, and exit. We hope that the      Code of Conduct and the Business Service Safety

into the whole supply chain management process,            third parties will abide by the applicable laws and        Code of Conduct , to clearly define their code of

continue to promote coordinated development                regulations, act according to the highest standards of     conduct regarding environmental sustainability,

with suppliers, and jointly create a high-quality,         integrity, and conduct anti-bribery and trade sanctions    labour and human rights, health and safety, and

sustainable and responsible supply chain.                  screening on all cooperative third parties before          business ethics. We also place great emphasis                           of our directly cooperated

                                                           signing the contract. For suppliers in our database,       on the product quality and food safety of                               suppliers certified to ISO 9001 or

                                                                                                                                                                                              other equivalent certifications

STANDARDISING SUPPLIER                                     we adopt a hierarchical and classified management          suppliers. We require our establish to establish

MANAGEMENT                                                 method and conduct annual performance evaluations,         a quality management system in accordance

                                                           covering dimensions such as product quality, service       with the requirements of ISO 9001 standards.

We comply with the Group"s Requirements on Direct                                                                                                                                    CASE     SUPPLIER QUALITY AND FOOD

                                                           quality, and safety compliance. We also carry out          Raw material and packaging material suppliers

Material Quality, Suppliers" Requirements on Non-                                                                                                                                             SAFETY TRAINING

                                                           quality and food safety audits on suppliers every          are required to be certified under a Global Food

contact Material Quality, Suppliers and Licensees

                                                           year. For suppliers that fail the audit, we require them   Safety Initiative (GFSI) recognised food safety              Every year, we provide standard auditing

Code of Conduct , and other supplier management

                                                           to improve and be re-included in the database after        scheme. In 2022, 100% of our material suppliers              training for our auditors and suppliers

regulations. Additionally, we have formulated the

                                                           meeting the requirements. For suppliers that continue      were certified to the ISO 14001 environmental                who participate in quality audits.

Chongqing Brewery Co., Ltd. Procurement Policy to

                                                           to perform poorly, we eliminate them according to          management system and 100% of our directly                   Additionally, we offer trainings on

improve supplier management system.

                                                           corresponding regulations.                                 cooperated suppliers certified to the ISO 9001               relevant quality standards and food safety

                                                                                                                      quality management system or other equivalent                requirements tailored to the specific

Others                                                                                                                certifications.                                              needs of our suppliers, helping them to

                                                                                                                                                                                   gain a thorough understanding of our

                                                                                                                                                                                   quality and food safety expectations and

                                                 In 2022, the

                                                                                                                      SUPPLIERS IMPROVEMENT

                                                                                                                                                                                   improve their performance accordingly.

                                                Company has                                                           We proactively strengthen exchanges and

                                               a total of 2,421                                                       cooperation with our suppliers. We provide

                                                    suppliers.                                                        targeted empowerment training to educate

                                                                                                                      and guide suppliers on food safety, quality

                                                                                                                      management and sustainable development,

                                                                                        Equipment & Engineering       achieving win-win development with suppliers.

Packaging

                                                                                         Raw materials/contents                                                                    Supplier Quality and Food Safety Training

                                                                                                                                          Chongqing Brewery Environmental, Social & Governance Report COMMUNITY ENGAGEMENT   60

COMMUNITY

ENGAGEMENT                                          SUPPORTING EDUCATION                                        COMMUNITY CARE

We have a strong commitment to social               We are also committed to supporting education and           Our business units have initiated or participated in

responsibility and strive to give back to the       organising activities to provide financial aid to college   community public welfare activities to demonstrate our

community. We actively participate in various       freshmen who face financial difficulties in pursuing        care for the communities. These includes visits to the fire

public welfare undertakings and encourage our       their academic goals and to help them achieve their         departments and making donations to the community.

                                                    full potential.

employees to participate in community activities.

                                                        Chongqing Brewery"s Yibin Brewery, partnering

To ensure that our charitable donations are             with the Yibin Municipal Committee of the                    CASE      XIXIA JIANIANG BREWERY VISITED THE HELAN FIRE DEPARTMENT AND

effective and impactful, we have formulated the         Communist Youth League of China, initiated the                         EXTEND GRATUTUDE TO THEM

Management Measures for Charitable Donation             student financial assistant campaign since 2004.

Management . Through measures, we actively              For 19 consecutive years, we have donated a                  On June 14, 2022, employees of Xixia Jianiang Brewery visited the Helan Fire Department and

                                                        total of RMB 3.46 million to help 1,786 college

respond to donation activities initiated by local                                                                    extended gratitude and respect to the hard-working firefighters.

                                                        freshmen in Yibin who face financial difficulties

governments, standardise our charitable donation        to chase their dreams.

practices, and support and encourage all business

units and employees to actively participate in

charitable donations, in line with our goal of

building a decent corporate citizenship image.

                                                        In 2022, the "Chongqing Brewery Scholarship"

                                                        provided funds of RMB 10,000 to support

                                                        Chongqing Outstanding Youth League Work

                                                        Brand Project. The scholarship has funded 10

                                                        projects and benefited over 100,000 college

                                                        students to date, providing them with support

                                                        for their future development.

                                                                                                                     Xixia Jianiang Brewery Visited the Helan Fire Departments

                                                                                                                                              Chongqing Brewery Environmental, Social & Governance Report COMPLIANCE MANAGEMENT   61

COMPLIANCE

MANAGEMENT                                                THE BOARD OF DIRECTORS

                                                                                                                                                                               INTERNAL CONTROL AND RISK

                                                                                                                                                                               MANAGEMENT

The Company sticks to the principles of integrity         The Company"s current independent directors                 regular reports and 48 interim notifications in          Risk management is vital for us to maintain stable

management and strict business ethics while               have different professional backgrounds and                 2022.                                                    operations. We have established a sound and

closely monitoring any related risks. We                  have rich professional experience in law, financial                                                                  effective normal risk management mechanism,

continuously enhance our corporate governance             accounting, marketing, management and other                 We actively carried out various training among           continuing to improve the risk management and

                                                          aspects. The Board of Directors actively promotes           the management to improve their capabilities

and promote the healthy growth of the Company                                                                                                                                  internal monitoring mechanism while promoting

                                                          corporate governance, communicates with                     and the efficiency of corporate governance. Some

by leveraging our sound and sophisticated                                                                                                                                      comprehensive risk management.

                                                          investors, and performs management duties by                board of directors the Company attended the

corporate governance structure. We are dedicated

                                                          holding multiple internal and external meetings.            training entitled 2022 Third Follow-up Training

to building and maintaining a compliant, clean            In 2022, we held a total of 11 board meetings,              for Independent Directors of Listed Companies            We have established four lines of defence for risk

and trustworthy business environment.                     5 meetings of the board of supervisors, and 4               organised by the Shanghai Stock Exchange                 prevention and control. Risk owners are responsible

                                                          general meetings of shareholders. At the same               and the Training on Corporate Governance                 for reviewing on a quarterly basis, explaining the

                                                          time, according to Articles of Association of the           organised by the China Association of Public             status of risk control activities, and verifying their

                                                          Company , the general election of the 10th board            Companies in July 2022, which helped improve             effectiveness. Risk owners compile quarterly risk

CORPORATE                                                 of directors and the board of supervisors was               the management capabilities of our directors. In         reports and list newly identified high risks, which are

GOVERNANCE                                                completed. We also held 4 public performance                December 2022, some members of the board                 then reported to the Company"s risk management

                                                          presentation meetings, attended over 500 online             of directors, supervisors and senior executives          team.

                                                          and in-person investor exchange meetings, and               attended the training sessions organised by

Sound corporate governance is the foundation on

                                                          organised two special activities, including brewery         the Chongqing Public Companies Association

which the Company maintains stable operations. We                                                                                                                              We have formulated internal policies such as

                                                          visits and beer tastings.                                   under the guidance of the Chongqing Public

have established a governance structure with clear                                                                                                                             the Risk Management Policy and the Internal

                                                                                                                      Companies Association. They also attended

roles and responsibilities in place, and continuously                                                                                                                          Control Self-Assessment Manual to ensure that all

                                                          The Board of Directors attaches importance to               our internal training entitled Current Regulatory

improve our corporate information transparency and                                                                                                                             employees understand their roles and responsibilities

                                                          timely and effective information disclosure, and            Forms and Key Concerns , which strengthened

                                                                                                                                                                               in identifying, assessing, and controlling risks.

risk management capabilities to ensure the stability of   regulates disclosure to promote transparency.               their awareness of compliance and information

                                                                                                                                                                               Additionally, we focus on potential ESG-related risks

our business operations.                                  The Company completed the disclosure of 4                   disclosure.

                                                                                                                                                                               and have shortlisted various risks, such as product

                                                                                                                                                 Local Responsibilities        quality, occupational health and safety, pollutant

                                                                                                                                                                               discharge, and internal control risks. We continuously

                                                                                                                                                                               evaluate and score these risks and provide

       The first line of defence:                                                                               Operations Management: control, manage and                     rectification opinions to prevent potential ESG risks

       Operations Management                                                                                    mitigate risks, enforce controls, and be responsible           from arising.

                                                                                                                for day-to-day internal control and related activities

                                                                                                                                                                               To ensure that all employees understand the

       The second line of defence:                                                                              Risk Management and Compliance: monitor and                    importance of risk management and compliance, we

       Risk Management and Compliance

                                                                                                                policies, manuals and guidelines

                                                                                                                                                                               provide training courses to all employees, including

                                                                                                                                                                               executives. These training courses include new hire

                                                                                                                                                                               training courses courses and special training for key

       The third line of defence:

       Internal Audit                                                                                           advice on risk management and internal control                 held four staff meetings to enhance the risk awareness

                                                                                                                                                                               of all employees. In 2022, we conducted compliance

                                                                                                                External Audit and Regulation: assess the financial            training on topics such as ethics and code of conduct,

       The fourth line of defence:

       External Audit                                                                                           and regulatory compliance of risk management and               anti-bribery and anti-corruption, and competition law

                                                                                                                internal control                                               compliance, with more than 6,000 enrolments.

                                                                                                                                               Chongqing Brewery Environmental, Social & Governance Report COMPLIANCE MANAGEMENT    62

BUSINESS ETHICS                                                                                                       PROTECTING WHISTLEBLOWERS                                   RAISING AWARENESS OF ANTI-

                                                                                                                                                                                  CORRUPTION

Living by Our Compass is a core value in our              consultants or middlemen) in a non-disclosed and            We have formulated the Speak Up Helpline

business operations. We strictly adhere to the            non-transparent manner. We also require all new             Handbook to provide employees and business-related          We attach importance to the promotion of employees"

Company Law of the People"s Republic of China ,           employees to fill in a conflict-of-interest declaration     personnel with various reporting channels such as           business ethics awareness. We require all new hires

the Anti-Unfair Competition Law of the People"s           form. Employees above a certain level and all in the        emails, calls, and the third-party anonymous reporting      to complete trainings on ethics and code of conduct,

Republic of China , the Anti-Monopoly Law of the

                                                          procurement departments are required to update the          platform known as the "Speak up Helpline". These            competition compliance, anti-bribery and anti-

People"s Republic of China , and other national laws

                                                          declaration once a year. When a possible conflict           measures aim to encourage any employees and                 corruption within 30 days of joining the Company.

and regulations. Additionally, we abide by the Code

                                                          of interest arises, employees are required to report        business-related personnel to report any violations         They are also required to review the course at least

of Ethics & Conduct , the Anti-bribery & Corruption

Policy , the Third-party Screening Manual , and other     any transactions or relationships that may present a        of our business ethics and code of conduct. After           once every three years. We share information about

rules on business ethics developed by the Group. We       conflict of interest to their supervisors, HR department,   we receive the reported information, our full-time          our Speak Up Helpline through lectures, emails,

have formulated a series of codes of conduct and          or local compliance officers. The Company was not           investigators will be responsible for collecting and        computer lock screen wallpaper, and the Company’s

contract templates, such as the Employee Manual ,         involved in any corruption or bribery lawsuit in 2022.      analysing relevant clues, and conducting interviews         intranet to encourage employees to report any

the Manual on Gifts, Banquets and Receptions, the                                                                     with the whistleblowers while maintaining strict            violations and clues. In 2022, we conducted targeted

Product Distribution Agreement . These guidelines         PROMOTING FAIR COMPETITION                                  confidentiality. We have specific procedures in             anti-bribery and anti-corruption training to employees

clarify our management requirements for business

                                                                                                                      place to ensure that the personal information of            in key positions to ensure that the Company conducts

ethics among employees, suppliers and distributors.       We participate in market competition in a fair and          whistleblowers is kept confidential. We strictly prohibit   business in an upright, responsible and honest manner.

We also strictly manage undesirable practices such

                                                          just manner, adhere to the laws and regulations of          any form of retaliation against them.

as anti-corruption and anti-bribery, trade sanctions

                                                          the places where we operate, and promote business

and export control, unfair competition, conflicts of

                                                          compliance management. We oppose unfair

interest, and information confidentiality risks through

these rules.                                              competition and prohibit any practice that will impair

                                                          competition and harm consumers.

At the governance level, the Company"s business

ethics is supervised by the CEO and CFO, and              REGULATING PARTNER PRACTICES                                of our suppliers had signed                                 of our suppliers had signed

the senior legal director is also the chairman of                                                                     the agreements on business                                  the Honesty and Integrity

                                                                                                                      ethics                                                      Agreement

the Company"s Supervisory Board responsible for           We expect our business partners to adhere to our

compliance management and reporting to the CFO            ethical standards. Our suppliers, licensees and

on a regular basis. We also conduct investigations        distributors are required to comply with the Supplier &

into business ethics issues including anti-bribery and

                                                          Licensee Code of Conduct as well as other applicable

corruption in various internal audits to ensure that

                                                          local laws and regulations. In 2022, we conducted

business ethics and management systems are in

                                                          an audit of distributor management process at all

place.

                                                          business units, randomly checked the content in

                                                          distributors contracts, and found no violations. In

ANTI-BRIBERY & ANTI-CORRUPTION                            2022, 100% of our suppliers signed the agreements

                                                          on business ethics and the Honesty and Integrity

Bribery and corruption are strictly prohibited.

                                                          Agreement.

Employees are banned from accepting any

gifts or dinner invitations from other employees

or cooperative partners (agents, distributors,

                                                                                                                                      Chongqing Brewery Environmental, Social & Governance Report COMPLIANCE MANAGEMENT        63

DATA SECURITY &

PRIVACY PROTECTION                                                                                                                                                    PRIVACY PROTECTION

The Company highly values data security                                                                                                                               We understand the significance of personal information

and privacy protection, respects the privacy of          Data security management system:                  Establishing an emergency response                         to consumers and have developed Personal Information

employees, contractors, suppliers, consumers, and                                                          mechanism:                                                 Protection Policy. This policy regulates the collection and

other third parties with business dealings, while        We standardise the principles, classification,                                                               use of customer personal information by WeChat official

effectively protecting their data.                       processing and protection measures regarding       The Company has formulated the Emergency                  accounts, mini programs, apps and platforms, sets clear

                                                         information record management and have            Plan for Personal Information Security Incidents

                                                                                                                                                                      rules on personalised advertising and data sharing. We

DATA SECURITY MANAGEMENT                                 developed a specific process for personal         and updated it according to changes in laws

                                                                                                                                                                      offers channels such as customer service and email

                                                         information protection. In addition, we have      and regulations. We also regularly conduct

                                                                                                                                                                      to ensure consumers’ rights to know and control their

We strictly comply with the Data Security Law of the     specified rules and requirements on computer      emergency training and drills. In the event of a

                                                         and network management, data security, and        personal information security incident resulting           personal information. We provide multiple approaches

People"s Republic of China and other related laws

                                                         privacy protection in the Employee Manual.        from unauthorised access, public disclosure,               to protect consumers" right to know and control of their

and regulations, as well as the Group"s IT Assets

                                                         We also require all employees to sign a           tampering or loss of information, the Company              personal information,and prevent personal information

Management Procedures and other requirements for

                                                         confirmation letter of the Information Security   will promptly launch an emergency plan, take               from being accessed, publicly disclosed, used, modified,

data security management. To build an information        and Acceptable Use Policy to ensure their         necessary remedial measures, and report to                 damaged or lost without authorisation.

security management framework we have formulated         compliance with the policy as our joint efforts   the relevant agencies to minimise the impact.

internal polices, such as the Information Security and   to safeguard data security.                       In the meantime, we will inform consumers                  Guarantee the security        Control the access and

Acceptable Use Policy , the Records Management and                                                         of the basics of the security incident and the             of sensitive information      operation rights of Mini

Personal Information Protection Guideline among          Data protection measures:                         possible impact and other information, and                 stored                        Programs

others.                                                                                                    report on the handling results. No major data

                                                          We enforce strict management of user and

                                                                                                           leakage incidents were reported within the                              Measures for protecting

                                                         employee data through various measures such

                                                                                                           Company in 2022.                                                          customer privacy

                                                         as setting company access control permissions,

                                                         setting employee data access permissions,

                                                         setting up firewalls and conducting external                                                                 Provide channels

                                                                                                                                                                                                            Conduct supplier

                                                                                                                                                                      for reporting privacy

                                                         audits on data permissions. In 2022, we                                                                                                            data reviews

                                                                                                                                                                      violations

                                                         conducted a personal information protection

                                                         compliance audit covering all business units,                      Data security

                                                         which did not find any high risks or major

                                                                                                                            management system

                                                                                                                                                                      DATA SECURITY AND PRIVACY

                                                         defects. Furthermore, we carried out supplier                                                                PROTECTION TRAINING

                                                         simulation and penetration tests to evaluate

                                                                                                                            Data security                             We attach importance to promoting our employees"

                                                         our supplier"s data security capabilities and                      management

                                                         ensure compliance with our data management                                                                   awareness of data security and privacy protection. We

                                                         standards and data security.                                                                                 require all new hires to complete information security

                                                                                                                         Data         Establishing

                                                                                                                         protection   an emergency

                                                                                                                                                                      training within 30 days of joining the Company and

                                                                                                                         measures     response

                                                                                                                                      mechanism                       review the course at least once every three years. We

                                                                                                                                                                      conduct regular information security education and

                                                                                                                                                                      training for personnel in relevant positions, with a focus

                                                                                                                                                                      on strengthening the awareness of key personnel in

                                                                                                                                                                      protecting the personal information of employees and

                                                                                                                                                                      consumers and improving the Company"s information

                                                                                                                                                                      security management capabilities.

                                                                                                                                           Chongqing Brewery Environmental, Social & Governance Report COMPLIANCE MANAGEMENT     64

INTELLCTUAL

PROPERTY RIGHTS                                        STANDARDISED DISTRIBUTOR

PROTECTION                                             MANAGEMENT                                                   DISTRIBUTOR ENGAGEMENT

The Company highly values the protection               We have created the Product Distribution Agreement           We emphasise close communication with distributors.      conduct reputation surveys to understand distributors"

of intellectual property rights (IPR) and fully        which we update yearly. It clearly stipulates the quality    We gather their feedback on the Company and our          satisfaction rate with the Company. To foster strong

implements its management. We have established         standards, packaging, branding, and promotional              business development through various channels            and stable cooperative relations with our distributors,

a robust management system for protecting              requirements, and business ethics and codes of               such as distributors" conferences, monthly visits,       we empower them through special training and

brands, patents, and trademarks. We strictly adhere                                                                                                                          themed activities. Through these initiatives, we work

                                                       conduct for our distributors. Additionally, we require all   and satisfaction surveys. We carefully consider their

to laws and regulations such as the Patent Law of                                                                                                                            effectively with our distributors to provide customers

                                                       distributors to sign the commitment letter indicating        suggestions and use them as a basis for adjusting

the People"s Republic of China and the Trademark                                                                                                                             with high-quality products and services.

                                                       their agreement to abiding by the Product Distribution       our future marketing strategies. In addition, we

Law of the People"s Republic of China to strengthen

                                                       Agreement , as well as agreements or regulations

IPR protection and enhance the Company"s market

                                                       regarding distribution areas and channels (including

competitiveness.                                                                                                         CASE     THE COMPANY LAUNCHED                            CASE      THE NEW RETAIL TEAM

                                                       e-commerce sales channels). This helps to establish a

                                                                                                                                  THE "BAIJIAHUI (COLLECTIVE                                EMPOWERS DISTRIBUTIORS

                                                       fair and equitable sales network, ensuring high-quality                    WISDOM)" PROGRAMME

We strictly regulate the process of application,

maintenance, use, licensing and transfer, risk         products and services for all our consumers.

                                                                                                                        To promote business development, we                       The new retail team of our international

prevention and control of trademarks, patents,

copyrights, and other IPRs. We also actively           We have developed evaluation criteria for selecting              launched the "Baijiahui" programmes for                   brand business unit partnered with business

respond to infringements, and our local sales team     distributors to enter our database. Furthermore,                 distributors and other business partners. Our             representatives of distributors to organise

and external third-party organisations conduct         we also manage distributors at different levels and              market research team and other internal                   an online training session themed "Building

spontaneous monitoring of market infringements.        develop targeted development, cultivation, and                   and external top sales reps shared trends                 a distributor Mini Program to boost new

In 2022, we collaborated with relevant internal and    cooperation plans correspondingly. We conduct                    in Fast Moving Consumer Goods (FMCG)                      growth". The training focused on the

external parties and effectively cracked down on       quarterly and annual comprehensive assessments and               industry, brewing industry, e-commerce, and               distributor Mini Programme and community

product counterfeiting and infringements, thereby                                                                       retail through lectures. They also shared                 bulk purchases, guiding distributors on

                                                       evaluations of distributors based on four dimensions:

safeguarding the Company"s legitimate rights and                                                                        success stories in market development,                    leveraging new channels to empower their

                                                       business performance, business capabilities, channel

interests.

                                                       management, and warehousing, logistics, and data.                terminal management, e-commerce, and                      businesses.

                                                       Any distributors who violate regulations or conduct              new retail transformation to enhance the

DISTRIBUTOR                                            major malicious practices during our cooperation will            distributors" comprehensive capabilities.

MANAGEMENT                                             be added to a distributor exit list to ensure the dynamic

                                                       management of distributors.                                      On December 21, 2022, the programme

The Company has a diverse range of brands and a                                                                         was first livestreamed, providing insights on

large sales network. Our distributors play a crucial                                                                    food and beverage consumption, analysis

role in the market as they are the traditional sales                                                                    of product driving factors, and changes in

team. We highly value our relationship with our                                                                         category patterns. A total of 542 employees

distributors to ensure the quality and efficiency of                                                                    and distributors from 26 provinces across the

the sales network and the top-quality services to                                                                       country attended the live programme, and

consumers.                                                                                                              363 interactive messages were sent. The

                                                                                                                        satisfaction score of participants reached

                                                                                                                        recognised by the distributors.

                                                                                                                                  Chongqing Brewery Environmental, Social & Governance Report THIRD-PARTY COMMENT   65

APPENDIX

THIRD-PARTY COMMENT

The year 2022 holds immense significance for the high-quality         Chongqing Brewery is a typical case of this progress. In terms of      part in the national rational drinking promotion week activities

development of the beer industry. Despite the complex intricacies     performance, Chongqing Brewery proactively responds to market          of the association. Giving back to society through a series of

of the domestic and foreign economic and market conditions,           changes and consistently satisfies consumer demand for high-           scholarship and community participation projects. In terms of

the beer industry has displayed remarkable resilience and allure.     quality beer. As a result, the company has achieved sustained          corporate governance, Chongqing Brewery has held more than

Through demand-side management and supply-side structural             and comprehensive growth in terms of sales, revenue, and profits,      five hundred investor communication activities, strengthened

reform, the industry has continuously improved the potential for      indicating that it has embarked on a path towards high-quality         responsible procurement, continuously updated compliance

high-quality development while enhancing the distribution of          development. At the same time, Chongqing Brewery continues to          management, and further improved the corporate governance

mid-to-high-end products. This has resulted in a comprehensive        promote the "Together Towards ZERO" sustainable development            system.

improvement in the industry’s management capabilities,                programme, having successfully completed various targets by the

profitability, competitiveness, and service provision. Overall, the   end of 2022 whilst embarking on a new journey of the "Together         This inaugural Chongqing Brewery Environmental, Social and

Chinese beer industry’s high-quality development has presented        Towards ZERO and Beyond" ESG programme.                                Governance report signifies a new phase in the brewery’s efforts

a favourable trend of “both quantity and price rising”.                                                                                      towards ESG-related initiatives. The report provides a systematic

                                                                      In terms of the environment, Chongqing Brewery eagerly                 summary and disclosure of Chongqing Brewery’s ESG plan,

Concurrently, we are pleased to see that the high-quality             responds to the national carbon peaking and carbon neutrality          progress, and goals, along with specific case studies. This not

development of the Chinese beer industry is not only reflected in     goals, achieving good results such as 100% use of green                only facilitates further improvements in Chongqing Brewery’s

robust performance, but also in outstanding ESG performance.          electricity and average water usage efficiency of 2.24 hl/hl.          own ESG work but also positions it as a leader in promoting the

Under the guidance of the national "3060" carbon target and the       At the same time, by joining the ZERO Farming Footprint and            strengthening of ESG governance, the practice of ESG concepts,

call for a green and low-carbon transformation, China"s leading       ZERO Packaging Waste targets, it is moving towards the vision          and the improvement of ESG performance within the Chinese

beer companies have already launched ESG plans and continue           of achieving net zero emissions along the entire value chain by        beer industry.

to promote related work, achieving tangible progress.                 2040. In terms of society, Chongqing Brewery actively takes

                                                                                      Chongqing Brewery Environmental, Social & Governance Report SHANGHAI STOCK EXCHANGE ESG INDEX   66

SHANGHAI STOCK EXCHANGE ESG INDEX

Focus areas and KPIs                              Location                 Focus areas and KPIs                                     Location

Environmental protection                                                   Social responsibility

                                                                                                                                    ZERO Irresponsible Drinking

Environmental policies and strategies             ESG Programme            Corporate responsibility

                                                                                                                                    Community Engagement

                                                                                                                                    ZERO Accidents Culture

Environmental monitoring                          Emissions Management     Employee rights protection

                                                                                                                                    Diversity, Equity & Inclusion

Key information required to be disclosed by the

                                                  Emissions Management     Product quality and responsibility                       Products and Services

environmental regulators

Pollutants                                        Emissions Management

                                                                           Privacy and information security                         Compliance Management

                                                  ZERO Carbon Footprint                                                             Responsible Sourcing

                                                                           Public responsibility

Usage of resources                                ZERO Packaging Waste                                                              Community Engagement

                                                  ZERO Water Waste

                                                                           Stakeholder objections                                   Stakeholder Engagement

GHG emissions                                     ZERO Carbon Footprint

                                                                           Corporate governance

Biodiversity                                      ZERO Farming Footprint   Disclosure requirements                                  Compliance Management

Environmental risks                               Emissions Management     Governance system                                        Compliance Management

Environmental accidents                           Emissions Management     Shareholders" meeting                                    Compliance Management

                                                                     Chongqing Brewery Environmental, Social & Governance Report CONTRIBUTING TO THE UN SUSTAINABLE DEVELOPMENT GOALS   67

CONTRIBUTING TO THE UN SUSTAINABLE DEVELOPMENT

GOALS

SDGs      Target                                                                                                Focus Area(s)                                            Page

          in particular women, indigenous peoples, family farmers, pastoralists and fishers, including

          through secure and equal access to land, other productive resources and inputs, knowledge,

                                                                                                                ZERO Farming Footprint                                   P20

          financial services, markets and opportunities for value addition and non-farm employment

          agricultural practices that increase productivity and production, that help maintain

          ecosystems, that strengthen capacity for adaptation to climate change, extreme weather,

                                                                                                                ZERO Farming Footprint                                   P20

          drought, flooding and other disasters and that progressively improve land and soil quality

          abuse and harmful use of alcohol

                                                                                                                ZERO Irresponsible Drinking                              P31

                                                                                                                ZERO Irresponsible Drinking

                                                                                                                ZERO Accidents Culture

          chemicals and air, water and soil pollution and contamination

                                                                                                                                                                         P13, 26

                                                                                                                ZERO Water Waste

                                                                                                                Diversity, Equity & Inclusion                            P50

          all levels of decision-making in political, economic and public life

                                                                 Chongqing Brewery Environmental, Social & Governance Report CONTRIBUTING TO THE UN SUSTAINABLE DEVELOPMENT GOALS   68

SDGs   Target                                                                                               Focus Area(s)                                            Page

       for all

                                                                                                            ZERO Water Waste                                         P26

       end open defecation, paying special attention to the needs of women and girls and those in           ZERO Water Waste                                         P26

       vulnerable situations

       minimizing release of hazardous chemicals and materials, halving the proportion of                   ZERO Water Waste                                         P26

       untreated wastewater and substantially increasing recycling and safe reuse globally

       sustainable withdrawals and supply of freshwater to address water scarcity and                       ZERO Water Waste                                         P26

       substantially reduce the number of people suffering from water scarcity

       through transboundary cooperation as appropriate

                                                                                                            ZERO Water Waste                                         P26

       wetlands, rivers, aquifers and lakes

                                                                                                            ZERO Water Waste                                         P26

       sustainable energy services for all in developing countries, in particular least developed

       countries, small island developing States, and land-locked developing countries, in

                                                                                                            ZERO Carbon Footprint                                    P13

       accordance with their respective programmes of support

                                                                    Chongqing Brewery Environmental, Social & Governance Report CONTRIBUTING TO THE UN SUSTAINABLE DEVELOPMENT GOALS   69

SDGs   Target                                                                                                  Focus Area(s)                                            Page

       men, including for young people and persons with disabilities, and equal pay for work of                                                                         P50

       equal value                                                                                             Human Rights

       and human trafficking and secure the prohibition and elimination of the worst forms of child

       labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its

                                                                                                               Human Rights                                             P50, 59

       forms                                                                                                   Responsible Sourcing

                                                                                                               ZERO Accidents Culture

       workers, including migrant workers, in particular women migrants, and those in precarious               Human Rights                                             P36, 50, 59

       employment

                                                                                                               Responsible Sourcing

       irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status

                                                                                                                                                                        P50

                                                                                                               Human Rights

                                                                                                               Diversity, Equity & Inclusion

       discriminatory laws, policies and practices and promoting appropriate legislation, policies             Human Rights                                             P50, 59

       and action in this regard

                                                                                                               Responsible Sourcing

                                                                  Chongqing Brewery Environmental, Social & Governance Report CONTRIBUTING TO THE UN SUSTAINABLE DEVELOPMENT GOALS   70

SDGs   Target                                                                                                Focus Area(s)                                            Page

                                                                                                             ZERO Carbon Footprint

                                                                                                             ZERO Farming Footprint

                                                                                                             ZERO Packaging Waste

                                                                                                             ZERO Water Waste

       and reuse

                                                                                                             ZERO Packaging Waste                                     P23

                                                                                                             Through our TTZAB programme, we are

       sustainable practices and to integrate sustainability information into their reporting cycle          practices, and report progress on our TTZAB

                                                                                                                                                                      P6

                                                                                                             focus areas annually.

       move towards more sustainable patterns of consumption and production

                                                                                                             ZERO Carbon Footprint                                    P13

                                                                                                             ZERO Carbon Footprint

       disasters in all countries

                                                                                                             ZERO Farming Footprint                                   P13, 20, 26

                                                                                                             ZERO Water Waste

       from land-based activities, including marine debris and nutrient pollution

                                                                                                                                                                      P20, 23

                                                                                                             ZERO Packaging Waste

                                                                 Chongqing Brewery Environmental, Social & Governance Report CONTRIBUTING TO THE UN SUSTAINABLE DEVELOPMENT GOALS   71

SDGs   Target                                                                                               Focus Area(s)                                            Page

       by desertification, drought and floods, and strive to achieve a land degradation-neutral             ZERO Farming Footprint                                   P20

       world

       the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened                                                                       P20, 26

       species                                                                                              ZERO Water Waste

                                                                                                            Diversity, Equity & Inclusion

                                                                                                            Responsible Sourcing

                                                                                                            ZERO Carbon Footprint

       building on the experience and resourcing strategies of partnerships

                                                                                                            ZERO Water Waste                                         P13, 26, 60

                                                                                                            Community Engagement

                                                                                                                   Chongqing Brewery Environmental, Social & Governance Report ESG KPIS   72

ESG KPIS

Focus areas                        Indicators                                                              Unit                   2022

Environmental KPIs

                                   CO2 emissions from the use of light fuel oil                            tCO2e                  670.7

                                   CO2 emissions from the use of heavy fuel oil                            tCO2e                  /

                                   CO2 emissions from the use of natural gas                               tCO2e                  78,209.8

                                   CO2 emissions from the use of coal                                      tCO2e                  /

                                   CO2 emissions from district heating facilities (with standard heating

                                                                                                           tCO2e                  22,881.9

                                   system)

                                   CO2 emissions from the heat energy consumed                             tCO2e                  101,762.5

GHG emissions

                                   CO2 emissions from the use of electricity                               tCO2e                  /

                                   Total CO2 emissions from factories                                      tCO2e                  101,762.5

                                   CO2 emissions from refrigerants                                         tCO2e                  3,773.2

                                   GHG emissions (Scope 1)                                                 tCO2e                  82,653.8

                                   GHG emissions (Scope 2)                                                 tCO2e                  22,881.9

                                   GHG emissions (Scope 1+Scope 2)                                         tCO2e                  105,535.7

                                   Heat energy from light fuel oil                                         MWh                    2,514.4

                                   Heat energy from heavy fuel oil                                         MWh                    /

                                   Heat energy from natural gas                                            MWh                    387,254.1

Energy consumption in production

                                   Heat energy generated by biogas from sewage plants                      MWh                    1,318.9

                                   Heat energy from coal                                                   MWh                    /

                                   Heat energy from biomass fuel                                           MWh                    10,167.5

                                                                                                                         Chongqing Brewery Environmental, Social & Governance Report ESG KPIS   73

Focus areas                        Indicators                                                             Unit                          2022

                                   Heat from district heating facilities (with standard heating system)   MWh                           77,829.6

                                   Total heat consumed at the brewery                                     MWh                           479,084.4

                                   Total consumption of power                                             MWh                           157,141.6

                                   Total consumption of heat                                              MWh                           468,970.1

Energy consumption in production

                                   Percentage of green electricity                                        %                             100%

                                   Natural gas                                                            Nm3                           41,883,659.6

                                   Diesel                                                                 Litre                         266,025.6

                                   Own boreholes                                                          cubic meters                  451,203.0

                                   Municipal water                                                        cubic meters                  5,459,109.4

                                   Surface water                                                          cubic meters                  380,982.0

Water                              Total water use                                                        cubic meters                  6,291,294.4

                                   Total water consumption                                                cubic meters                  6,221,452.7

                                   Total exhaust emissions                                                cubic meters                  885,520,558.0

                                   Scoot (dust)                                                           cubic meters                  49.9

                                   SOx emissions                                                          tonnes                        7.0

Waste gas emissions

                                   NOx emissions                                                          tonnes                        47.8

                                   Ammonia                                                                tonnes                        17.1

                                   Tot-P                                                                  tonnes                        3.2

Waste water discharge

                                   Suspended solids                                                       tonnes                        147.1

                                                                                                Chongqing Brewery Environmental, Social & Governance Report ESG KPIS   74

Focus areas             Indicators                                               Unit                          2022

                        COD of raw sewage from per hectolitre of beer produced   kg/hl                         0.3

                        Amount of sewage produced per hectolitre of beer         hl/hl                         1.1

Waste water discharge   Average COD of raw sewage                                g/m3                          66,800.9

                        Total sewage discharge                                   cubic meters                  3,052,268.7

                        Sewage that has been recovered, treated and reused       cubic meters                  130,696

                        Metal                                                    tonnes                        25,452

                        Glass                                                    tonnes                        546,641

Packaging management

                        Plastics                                                 tonnes                        26,514

                        Paper                                                    tonnes                        113,112

Social KPIs

                        Number of lost-time injuries of employees                /                             1

                        Employee fatalities                                      /                             0

Production safety

                        Number of lost-time injuries of contractors              /                             1

                        Contractor fatalities                                    /                             0

                        Total workforce                                          person                        6,765

                        Number of new employees                                  person                        928

Workforce

                        Number of male employees                                 person                        4,686

                        Number of female employees                               person                        2,079

                                                                                                                                       Chongqing Brewery Environmental, Social & Governance Report ESG KPIS   75

Focus areas                                           Indicators                                                              Unit                    2022

                                                      Permanent employees                                                     person                  6,700

                                                      Full-time employees                                                     person                  6,700

                                                      Part-time employees (including interns)                                 person                  65

                                                      Younger than 18                                                         person                  0

Workforce

                                                      Senior management                                                       person                  11

                                                      Middle management                                                       person                  952

                                                      Blue-collar workers                                                     person                  1,961

                                                      Administrative employees                                                person                  3,849

                                                      Employee turnover                                                       %                       13.4

Employee turnover percentage10                        Male                                                                    %                       67.8

                                                      Female                                                                  %                       32.2

   Employee turnover percentage by category = number of employees turnover by category / total number of employees turnover

                                                                               Chongqing Brewery Environmental, Social & Governance Report ESG KPIS   76

Focus areas                               Indicators                  Unit                    2022

Employee turnover percentage

                                          Senior management           %                       0.1

                                          Middle management           %                       9.8

                                          Blue-collar workers         %                       24.0

                                          Administrative employees    %                       66.1

Average hours of training per employee                                hours                   4.4

Percentage of employees covered by collective bargaining agreements   %                       48.8

Number of employees with legal labour relations                       person                  6,765

                                                                                                                        Chongqing Brewery Environmental, Social & Governance (ESG) Report Six TTZAB Ambitions   77

                                                     酿造 更美好的现在

                                                                     和未来

Address: 12&13/F, Qiaoxin International Finance Center, 62 Jinsui Road, Zhujiang New Town, Tianhe District, Guangzhou                  Email: CBCSMIR@chongqinggroup.cn

Telephone: 4001600132                                                                                                                  Website: www.carlsbergchina.com.cn

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