Our water replenishment project in India helped to create a farm pond to support irrigation.
With reference to the World Resources Institute’s (“WRI”) Aqueduct tool and our internal custom-made water risk tool, we conduct a comprehensive, seven-step watershed management process at breweries located in water-stress areas annually and quarterly to classify each brewery from “Very High-Risk” to “Low to Medium Risk” sites.

We implement water reduction measures at all 48 of our breweries to reduce reliance on water withdrawals, while at the same time promoting water conservation within our workforce and breweries to guide water-saving practices.
We also monitor the supply chain and apply the WRI Aqueduct tool to ensure that our agricultural commodities are not sourced from water-stressed areas or anticipated to face water stress.

We monitor and review relevant regulations and standards in relation to effluent management intended to ensure 100% compliance in our breweries.
We treat our effluent before discharge to prevent potential impacts associated with water pollutants and ensure that all parameters are within legal limits.
Our breweries in India are all zero effluent discharge.

We aim to improve the availability and quality of water where we operate.
We place high emphasis on China, the most populated country, and India, where many communities have limited access to clean potable water.

·We work to minimize waste generated at each stage of our packaging life cycle. Our Packaging and Waste Policy is available on our website to guide our operations to avoid redundant consumption, select sustainable alternatives and properly reuse and dispose of materials. This Policy is approved by the Procurement Director – Sustainability and regularly reviewed considering legislation, public policy and organizational changes and development in sustainability best practices, or at a minimum, every three years. Updates of the Policy will be presented to the ESG Committee for endorsement.

·We design our packaging to optimize the use of materials and source materials that are recyclable, returnable and/or contain recycled contents. By adopting circular options, such as returnable bottles, we were able to reduce carbon emissions and drives more sustainable consumer behavior. We worked closely with our suppliers to lightweight our bottles, cans and other packaging materials in each market in 2022. With a focus on reducing the need for virgin materials where possible and instead increasing recycled content, we have developed a new technology to achieve 90% recycled content in our glass bottles in China.
·We use social media marketing campaigns and product labelling to educate our consumers about the importance of recycling, and look for more ways to support packaging recycling. Corona announced its sustainability development plan for 2022: 145 tons of plastic waste in the ocean to be recycled throughout the year.

·Our water replenishment project in India helped to create a farm pond to support irrigation.
·With reference to the World Resources Institute’s (“WRI”) Aqueduct tool and our internal custom-made water risk tool, we conduct a comprehensive, seven-step watershed management process at breweries located in water-stress are as annually and quarterly to classify each brewery from “Very High-Risk” to “Low to Medium Risk” sites.

·We implement water reduction measures at our breweries to reduce reliance on water withdrawals, while at the same time promoting water conservation within our workforce and breweries to guide water-saving practices. With the joint efforts of each brewery, up to now, all breweries in the APAC region have joined the water 1:1 development plan, and formulated brewery-specific water consumption solutions guided by 3R+A and VPO+TECH.
·We also monitor the supply chain and apply the WRI Aqueduct tool to ensure that our agricultural raw materials do not come from areas with water scarcity or where water scarcity is expected.

·We monitor and review relevant regulations and standards in relation to effluent management intended to ensure 100% compliance in our breweries.
·We treat our effluent before discharge to prevent potential impacts associated with water pollutants and ensure that all parameters are within legal limits.
·We are 100% in compliance with water quality standards for discharge. Four of our breweries have adopted the Zero Effluent Discharge strategy, where the extracted water either flows into our product or is reused internally for operations.

·We aim to improve the availability and quality of water where we operate.We place high emphasis on China, the most populated country, and India, where many communities have limited access to clean potable water.
·In total, we have replenished 31 million hl of water across the APAC region.

·In China, nine breweries have installed solar panels for the on-site generation of renewable electricity. The solar panels installed in the nine breweries generated a total 31.7 million kWh of electricity in 2022. Kunming, Jinzhou, Foshan and Ziyang breweries are now 100% powered by electricity from renewable sources and therefore achieved RE100.

·In South Korea, three breweries are contracted to implement solar panels for the on-site generation of renewable electricity, with one brewery started installation in 2022. All of the forklifts used in our breweries are powered by electricity instead of diesel.

·In India, five breweries in India have in installed solar panels for the on-site generation of renewable electricity. The solar panels installed in the five breweries generated a total 11.6 million kWh of electricity in 2022.

·In Vietnam, two breweries have installed on-site solar panels for the on-site generation of renewable electricity. The solar panels installed in the two breweries generated in total 1.3 million kWh of electricity in 2022.

Packaging Materials
·Packaging is accountable for a significant proportion (49.26%) of our overall GHG emissions. and there fore we must establish strategies to reduce carbon emissions. We accomplish this, in part, through lightweighting (re ducing weight of our bottles and cans), adopting returnable packaging, and sourcing packaging material made from the majority recycled content.
·We also use social media marketing campaigns and product labelling to educate our consumers about the importance of recycling, and look for more ways to support packaging recycling. Aiming to cultivate Corona to be the first plastic neutral beer (more plastic is recovered from the environment than produced), we recycled over 155 tons of plastic waste from the ocean in 2022.

Product Cooling
·We install energy-efficient and eco-friendly chillers, coolers and refrigerants to reduce GHG emissions in our Points of Connection (POC). In 2022, we have replaced many existing chillers and coolers with energy-efficient models. All the cooling agents used are eco-friendly and all of our purchased fridges are certified Class I energy efficiency or above.

Agriculture

·We work closely with our farmers to support sustainable farming practices through crop management, improved varieties and risk mitigation tools, whilst one of our supplier is also exploring carbon sequestration as a method to offset residual carbon emission for achieving net zero.
·We are building a soil health framework to promote carbon sequestration through healthy soils and plantations. We are using both our internal experts and our global partners to enhance our approach to soil regeneration in our agricultural development program. We joined the Climate Change Agriculture & Food Industry Partnership (CCAFIP) this year as an industry leader on climate action.

Operations
·We have implemented various measures to improve energy efficiency and reduce carbon emissions in our production and operations. We have replaced coal boilers with natural gas boilers, installed LED lighting and installed biogas collection system to recover a biogas to produce steam that would be reused in the brewing process.The absolute carbon emissions of our operations reduced 45.9% compared to our 2017 baseline, achieving a 35% reduction goal four years ahead of schedule.
·Educating our suppliers on our 2025 Sustainability Goals and encouraging them to implement low-carbon production is one of our priorities. For example,in 2023, we plan to engage 20 suppliers and 53 sites to help them develop a site-specific carbon footprint map, which will cover 50% of the spending for barley and packaging (primary and secondary packaging), covering 32% of the carbon emission footprint within our entire value chain.

Logistics
·Our carbon reduction mission is extended to our logistics partners, including upstream and downstream distribution, which represented around 4.4% of our GHG emissions in APAC in 2022. As part of our commitment to reduce our greenhouse gas emissions across our value chain by 25% per hectoliter by 2025 (from a 2017 baseline), we are reducing our emissions from logistics and transport through initiatives such as route optimization and the use of alternative fuel vehicles, which we have piloted across all our zones. As part of the strategic plan for our 2025 climate action targets, we estimate that by 2025 we will save over 1,800,000 tons of greenhouse gas emissions across our value chain (Scope 1, 2 and 3) compared to the 2017 baseline.

·We are building a soil health framework to support our farmers as well as promote biodiversity, water quality, and sequester GHG emissions. As we provide our farmers with the practices and tools they need to understand and improve the quality of their soil, it is important that we stay connected with them to effectively gather insights and tailor recommendations.
·We have expanded coverage of the Soil Health Framework to 75% of our farmers in India.

·Biodiversity loss impacts soil composition and water quality. Both factors affect the yield and quality of crops that we source. We want to better integrate biodiversity strategies across our supply chain. That is why we work with external partners to develop a standardized approach that can be tailored for each market.

·We are committed to integrating biodiversity into the modernization of the beer industry. 100% of our direct farmers are connected.

·We strive to continuously improve our products and we are one of the few brewers in the market that has committed to breeding better-quality malting barley.Through our barley programs we focus on enhancing the quality of local products.
·Every year, we import large quantities of high-quality aroma hops for our local brands in China. To save costs, ensure consistent supply and shorten our supply chain, we want to grow Cascade hops indoors and are looking to develop sustainable, long-term initiatives on a large scale. We have grown hops in a greenhouse in China and the results have been remarkable. We used 80% less water, 90% less land and 95% less fuel for transportation. With the indoor farm, we plan to increase the harvesting frequency to four times from twice a year. We will continue to expand this program and explore innovative ideas, such as spent grain-based soils as well as experiments with flavors.

·In India, We regularly collaborate with the Indian Institute of Wheat and Barley Research (IIWBR) and the National Skill Foundation of India (NSFI) to further educate our farmers and ensure optimal barley growing conditions. In addition, our Field Officers met with each farmer at least five times per year (totaling more than 4,500 visits). By using technologies such as FOSS, we can guarantee that the barley purchased from our farmers meets our quality requirements.