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