Carlsberg Group Sustainability Report

2015 Sustainability Report 2015 Contents 2

MANAGEMENT REVIEW 3 Carlsberg Group introduction 4 Selected highlights 5 Foreword from our CEO Resources & Environment, page 10 7 Our sustainability strategy 9 Sustainability throughout the value chain 10 Resources & Environment 23 Health & Well-being 34 People & Policies

APPENDICES 47 Section 1: Data summary table 51 Section 2: Independent assurance report 52 Section 3: Global Reporting Initiative table Health & Well-being, page 23 58 Section 4: Reporting process and scope 60 Section 5: Definitions 61 Section 6: List of reporting sites

Editor Carlsberg Group Sustainability Design and production Kontrapunkt Copywriting One Stone Advisors Proofreading Borella projects People & Policies, page 34 Sustainability Report 2015 Carlsberg Group introduction 3

BALANCED GEOGRAPHY Carlsberg Group 2015 Our regional exposure has changed in recent years and introduction 28% the growing Asia region now 21% 2014 accounts for 28% of Group 51% 53%

operating profit. 28% 19% Western Europe Eastern Europe 65.4bn Asia Net revenue (DKK)

8.5bn Operating profit before special items (DKK)

7.5bn Free cash flow (DKK)

8.1% Return on invested capital (ROIC)

Learn more about our business model and 47,464 financial performance in our Annual Report 2015, Employees available at www.carlsberggroup.com. Sustainability Report 2015 Selected highlights 4 Selected highlights 78% of our companies conducted responsible drinking RESPONSIBLE DRINKING campaigns We reached more than 1.5 million consumers with responsible drinking messaging during the RENEWABLE ENERGY first Global Beer Responsibility Day. We increased our use of renewable energy from 5% to 7%.

SUSTAINABLE CROWDSOURCING ENERGY, WATER, CO2 We received 162 ideas Slight improvements VOLUNTEERING from 35 countries in Cheers in energy and CO2 to Green Ideas, our first and stable water crowdsourcing campaign performance. 25,796 to make beer more sustainable. hours spent on volunteering

SUSTAINABLE INNOVATION HEALTH & SAFETY We initiated the We reduced our Group development of a bio- lost-time accident based and biodegradable rate by 16% and our bottle with EcoXpac, days lost rate by 8% one of our partners in compared with 2014. the Carlsberg Circular Community. Sustainability Report 2015 Foreword from our CEO 5 Foreword from In my short time with the Group, our CEO I have already seen significant progress in the projects that contribute to the communities in which we operate. In 2015, we continued to pursue our seen numerous examples of us working as sustainability ambitions by focusing one, such as our energy management efforts on three themes: Environment & in Poland, Denmark and Russia, and biogas Resources, Health & Well-being and recovery projects across the Group. I am People & Policies. sure that a company-wide collaborative ap- proach will continue to deliver results in the Ever since J.C. Jacobsen established the months and years ahead. Carlsberg Foundation 140 years ago, a com- mitment to society has been at the heart of Collaboration with external stakeholders our business. This is nowhere more evident deepens the impact of our sustainability than in our sustainability efforts. In my efforts and helps us deliver tangible results. short time with the Group, I have already For example, as part of the Carlsberg Circu- seen significant progress in the projects that lar Community (details on page 14), we are contribute to the communities in which we now working with our suppliers to make our operate. Many also strengthen our bottom packaging more sustainable. line, which is encouraging. Collaboration is also the key to tackling In 2015, we set ourselves a new ambition some of the world’s biggest challenges, so to be a professional, successful and attract­ I was pleased to see the climate change ive beer-based company in the markets agreement accepted at COP21 in Paris. The in which we choose to operate. Our sustain- Carlsberg Group will continue to support the ability programme ‒ with its strong man- UN Global Compact and the implementation agement systems, bold targets, and spirit of the Ten Principles. This report serves as of collaboration and innovation ‒ is vital in our annual Communication on Progress and helping us achieve this aspiration. underlines our commitment to transparency when it comes to sustainability. As the new CEO, I have a great opportunity to introduce new ways of thinking. And I We have also seen how collaboration helps truly believe it makes a difference when an us increase the impact of activities to en- organisation acts as one, across markets courage moderate consumption and inform and cultures. You could say that sustain- consumers about the risks associated with ability is all about tearing down silos and alcohol misuse. Throughout 2015, we contin- thinking in an integrated way. I have already ued to work directly with local organisations Sustainability Report 2015 Foreword from our CEO 6

in many markets to engage consumers and “celebrating responsibly” at the UEFA EURO Our key themes address alcohol-related risks to society, 2016™ football championships in France. and in September we helped to create the first ever Global Beer Responsibility Day, a It is with great regret that I report the worldwide effort to promote responsible beer deaths of three Carlsberg employees consumption. The Carlsberg Group partici- and two contractors in 2015. To me, it is pated in 10 markets along with other global completely unacceptable that lives are lost in Resources & and local brewers and beer associations (see the service of our company. I can therefore details on page 31). assure you that we will continue our efforts Environment to improve the health and safety of all Sustainability requires constant innovation, employees of the Carlsberg Group and of We strive to minimise our impact on the environment and optimise our use of not only in what we do, but also in the way our business partners. resources across our operations in an effort we do it. One example of an innovative ap- to help build a more sustainable future. proach in 2015 was Cheers to Green Ideas, Finally, I would like to encourage my a crowdsourcing competition in which we colleagues, our consumers and any other asked people for ideas about how to make readers to tell us how you think we are our beer more sustainable. The response doing. I strongly believe that an open was remarkable and the judges described dialogue is essential for increasing the the winning entry as “truly inspirational” value of our sustainability efforts. Health & (see details on page 22). Well-being Despite these successes, challenging market conditions meant that we had to reduce our We are committed to creating a culture of headcount by around 1,700 colleagues in Cees ’t Hart responsible drinking by promoting moderate 2015, and we did not achieve all we set out President & CEO consumption of our products and addressing to do at the start of the year. I am confident, alcohol-related harm in society. however, that the changes we have made will create a stronger foundation for the future and support our sustainability efforts in the long run.

Looking ahead, 2016 promises to be another People & eventful year. We launch our new corpor­ ate strategy, SAIL’22, in March. We will Policies then align our sustainability strategy with WE SUPPORT Our aim is to protect, develop and engage this and ensure that sustainability is deeply our employees, and to make a positive embedded in the business in order to deliver contribution to the communities in which more value to our stakeholders. We will we operate. also be rolling out a new Code of Ethics & Conduct to reiterate our commitment to be- Tell us how you think we are doing ing a responsible employer. And we will be at [email protected]. Sustainability Report 2015 Our sustainability strategy 7 Our sustainability strategy Strategy and decision-making in the Carlsberg Group are guided by our desire to play an active role in THE ELEMENTS OF OUR SUSTAINABILITY STRATEGY a sustainable world. Three elements provide the framework for managing our sustainability strategy:

We research and analyse our environ- being a sustainable business also makes us mental and social impacts as well as our more attractive to shareholders, as it implies economic impacts, and use our findings to greater resilience and lower risk of disruption, Articulating our commitment spot trends, reduce risks and maximise op- as well as making us alert to opportun­ ities­­ that We are committed to: creating our products in a way that optimises portunities for the benefit of the Group and we might otherwise miss. We are therefore the use of resources across our operations while minimising our impact our stakeholders. happy to have been included in the FTSE4Good on the environment; promoting responsible drinking; and adhering to Index, following an independent assessment our policies and standards in all our operations and activities. These BRINGING SUSTAINABILITY TO LIFE against the FTSE4Good entry criteria. This commitments are brought to life through relevant partnerships and Three elements bring our sustainability listing is a testament to our efforts to continu- specific priorities. strategy to life and provide the framework ously integrate sustainability into our business for managing our activities: articulating and throughout our value chain. our commitment, collaborating with others and activating our priorities. Our THE GLOBAL CONTEXT Collaborating with others commitment in all areas is to enhance our Our business is dependent on the availability We recognise that we cannot tackle the global challenges facing our positive and reduce our negative impacts. of land, water, crops, healthy ecosystems business and society alone. All kinds of collaboration – both internal We strive to amplify our positive impacts and thriving communities. Without these, and external – are essential for amplifying our impact and targeting through collaboration and by forming mu- we would not be able to make and sell our our efforts more effectively. tually beneficial partnerships around the products. This means that global sustainability world. We set both short- and medium-term trends and drivers, such as climate change, targets for each of our priorities,­ categoris- water scarcity, population growth, urbanisa- ing them under the following themes: Re- tion, income inequality and resource con- Activating our priorities sources & Environment, Health & Well-being straints, all have a major actual and potential We respond to global challenges by identifying priorities under our and People & Policies. impact on our business. In fact, a recent trend three sustainability themes (see page 6). For each set of priorities, analysis undertaken for the Carlsberg Group we develop clear actions and targets to measure our progress in the Work within these themes is driven by an am- showed that sustainability is an overarching short and medium term. bition to create value for all our stakeholders, megatrend that has the potential to directly both now and in the future. We believe that affect our commercial reality. Sustainability Report 2015 Our sustainability strategy 8

KEY ISSUES We have been using materiality to help us The Carlsberg Group’s sustainability strategy set the direction of our sustainability work 12 2017 and target-setting are based on the findings since 2011, and in 2015 we continued to be sites added to the reporting the end of our 3-year targets of our materiality assessment, which identi- guided by this earlier research and analysis. scope in 2015 fies the impacts that are most important to It identified employee health and safety, our business, our stakeholders and society environmental performance in the supply as a whole. This assessment is inspired chain, climate change, the health impacts of by the principles of the Global Reporting our products and responsible drinking as our ­Initiative (GRI), and set against a backdrop most important issues. As mentioned above, of international standards and agreements, these are grouped under three themes ABOUT THIS REPORT such as the UN Guiding Principles on Busi- in our report: Resources & Environment, ness and Human Rights, the International Health & Well-being and People & Policies. Reporting scope Labour Organization (ILO) conventions, the In 2014, we closed/divested three breweries in Vietnam and Russia, UN Sustainable Development Goals and the When our materiality process was refreshed which are therefore excluded from this report. We also acquired/ UN Global Compact, of which the Carlsberg in 2014, we confirmed the importance of built 11 breweries and one malting plant in China, Vietnam, India and Group has been a signatory since 2008. these issues and themes, but adjusted our Myanmar, which are therefore included in the scope for this report. way of communicating them. For instance, to Throughout the report, we provide updates on the commitments we To help us identify our most important im- demonstrate the relevance of our own actions made for 2015 and the actions planned for 2016 to ensure progress pacts, we actively engage with both internal in the global context, we now place greater towards our three-year 2017 targets. Measuring progress against and external stakeholders. For example, emphasis on operational activities (see local our stated goals clearly reveals the areas where we need to step up we conduct annual reputation surveys in case stories on pages 13, 18, 19, 26, 28 and our efforts. our key markets, which gives us invaluable 44). We also link our own efforts more visibly insights into the views of key stakeholder to megatrends and broader societal issues Methodology and assurance groups, including consumers, customers, through our “Collaboration in action” articles This report contains Standard Disclosures from the GRI Sustainability employees, journalists and politicians. (see pages 16, 22 and 31). These explore our Reporting Guidelines without meeting the “in accordance” criteria. partnership response to global challenges, We refer to its principles to ensure high standards and quality in DETERMINING MATERIAL ISSUES demonstrate thought leadership and invite terms of materiality, stakeholder inclusiveness, sustainability context, Our decisions about what to prioritise are interaction with stakeholders. completeness, balance, comparability, accuracy, timeliness, clarity informed by the results of our environ- and reliability (GRI table included on pages 52-57). mental, social and economic research and Looking ahead, we are tracking agricultural analysis, and by our stakeholders’ views. and other trends, such as local sourcing, As in previous years, we commissioned KPMG to assure selected For instance, research revealed that packag- organic products and responsible drinking, information at a limited level of assurance. This information is identified ing is the most significant contributor to our to address their potential importance in our by the note “Within KPMG’s assurance scope”. KPMG’s conclusions can be carbon footprint, while growing crops has future sustainability work. Our identified found in the independent assurance report on page 51. the biggest impact on water in the value material issues and stakeholder opinions chain. In the process of determining our will be integrated into our new corporate material issues, we take all such elements strategy in 2016. This will create a solid into consideration. platform for the Group’s future business, as well as helping us contribute to a prosperous society and a healthy environment. Sustainability Report 2015 Sustainability throughout the value chain 9 Sustainability throughout the value chain

R&D PROCUREMENT BREWING AND BOTTLING LOGISTICS MARKETING AND CUSTOMERS, CONSUMERS One of the ways we can Through collaboration Important sustainability Thanks to our efforts to COMMUNICATION AND SOCIETY continuously reduce with our suppliers, we are commitments for the optimise our logistics We believe that beer should The Carlsberg Group is the Carlsberg Group’s ensuring adherence to the Carlsberg Group are to operations, we are seeing be enjoyed as a natural part driving local and global environmental impact is Carlsberg Group’s CSR save energy and water more efficient use of of a balanced, healthy life. initiatives to promote by developing innovative standards and striving resources, and to ensure a resources as well as Moderate and responsible responsible drinking solutions and using to reduce the social and safe working environment economic benefits. Our consumption is, however, among our consumers and alternative raw materials and environmental impact for our employees. Besides initiatives include the a prerequisite. Our global to address the negative new products and processes. of purchased products being beneficial from an introduction of alternative Marketing Communication impacts of alcohol misuse Barley is central to our and services. We are environmental point of means of transport, Policy reflects the Carlsberg on individuals and society. production, but it is a niche also keeping abreast of view, this also helps us to improved warehousing and Group’s commitment to In cooperation with our cereal that accounts for developments, giving reduce our brewery running more efficient distribution. promoting responsible customers, we are also less than 2% of global grain consideration to CSR issues costs. We are successfully In addition, we are working drinking and sets the striving to broaden the production. We therefore in the supply chain, and reducing impacts through with suppliers to raise the standards for all consumer- reach and deepen the need to draw on the Group’s including the Supplier and efficiency programmes, new standard of materials and facing marketing and impact of our sustainability broad research expertise to Licensee Code of Conduct in technological developments equipment used by the advertisement. It applies efforts, for example by support and develop this key all contracts with suppliers. and carbon offsetting. Carlsberg Group. to Carlsberg employees encouraging consumers part of our supply chain. We are also making good across all markets and to all to recycle more. Through progress with regard to our external partners involved in a wide variety of different safety targets. developing communication activities, we are supporting material. local communities in the regions where we operate. Resources & Environment 01

Resources & Environment

OUR COMMITMENT • Optimising resource efficiency

OUR PRIORITIES • Building a circular mindset • Increasing brewing efficiency

10 Resources & Environment Sustainability Report 2015 Optimising resource efficiency 11

Our commitment Optimising resource efficiency

Articulating Collaborating Activating our priorities – our commitment with others targets for 2017

We strive to minimise our impact on the environment Many of the global resource challenges faced by • 5-10% reduction in relative consumption for 1 and optimise our use of resources across our operations our business are found upstream in our supply energy, water and CO2 in an effort to help build a more sustainable future. chain and in the communities in which we operate. • 17 partners in the Carlsberg Circular Community • 3 Cradle-to-Cradle® product certifications Sustainable, affordable and accessible resources are es- In order to effectively address these challenges, we form • Annual consumer-facing sustainable packaging sential for our business if we are to drive shareholder value partnerships with suppliers, farmers, peers and social activity by all Group companies and benefit the communities in which we operate. However, organisations. In this way, we are able to leverage a • Improve returnable packaging performance we must face the reality of scarce resources, waste and broader range of expertise and so generate a more power- in production and in trade in markets where land degradation, all of which have an impact on business ful collective response than the Carlsberg Group would be returnable packaging is part of the long-term and on society in general. We therefore try to reduce waste able to achieve alone. Quite simply, by working together packaging strategy wherever possible and make optimum use of the available we can make a bigger and better contribution to improving resources, both in our brewery operations and throughout resource efficiency. the supply chain.

1 Compared with 2014 baseline, adjustable when relevant. Resources & Environment Sustainability Report 2015 Protecting our natural resources 12

ProtectingPROTECTING OUR our NATURAL natural RESOURCES resources

100% 18 21% renewable power in Western biogas recovery plants reduction in relative CO 2 from renewable producing renewable emissions since 2009 Europe energy certi cates energy

>6.5 billion glass bottles re lled 22 consumer-facing recycling campaigns conducted 96% by 10 companies in the Group of by-products reused or recycled

of our mix in 40% re llable packaging Resources & Environment Sustainability Report 2015 Building a circular mindset 13

CASE STORY

Activating our priorities Kronenbourg “Recycle Building a circular mindset and Win” campaign

Resources and products should be significant proportion of our product costs. designed and used in continuous This means that a CO2 saving on packaging resource loops. The only long-term can often be translated into a cost saving. sustainable answer to waste is to By reducing, for instance, the amount of reduce and, ultimately, eliminate it. material used to make a piece of packag- ing, or by collecting more returnable bottles The first step towards achieving improve- for refilling, we reap both economic and ments in this area is to strive to minimise environmental benefits. More sustainable waste, along with all the other environmen- packaging provides opportunities for a true tal impacts of our operations and activities win-win situation, for the Group’s bottom throughout the supply chain. However, this line and for society in general. alone is not sufficient. We also need to find effective ways to decouple growth from Having said that, obtaining and implementing To make recycling more fun, Kronenbourg installed “fruit machines” where festival-goers impact. With this in mind, we are working improvements is no easy task and presents could deposit their empty cans, plastic bottles and plastic cups, rather than throwing with the concept of circularity and striving to numerous challenges. For example, systems them in the bin. By returning their packaging, consumers could win prizes or make introduce it into the way we run our brewer- for recycling and reuse are complex and donations to charity. ies as well as into the wider supply chain. require the coordination and cooperation of multiple stakeholders; the weight of Built in the style of old-fashioned one-armed bandits, the machines randomly generated SUSTAINABLE PACKAGING bottles can only be reduced so far before symbols. If three matching symbols lined up, the player could choose between receiving Our packages perform many useful func- quality starts to suffer, and consumers are a gift or contributing the value of the gift (averaging EUR 0.5) to the Kronenbourg tions. First and foremost, they maintain the not always motivated to recycle their used Foundation, which, in turn, donated the money to a recycling awareness project. There high quality of our products and protect packages efficiently. was also a jackpot – a ticket to next year’s festival. The machines identify and compact them during transport, whether we are the packaging so that it can be more easily recycled. using returnable glass bottles, cans, kegs IMPLEMENTING OUR PROGRAMME or PET bottles. We cannot do away with In order to manage these complexities in our By rewarding French festival-goers for their efforts, this fun idea turned recycling into a packaging, as it is such an essential part of sustainable packaging programme, we adopt really positive experience. The result was a reduction in the amount of branded waste our products. Our approach is therefore to the 4 Rs approach: reduce, reuse, recycle and, we hope, a longer-term behavioural change. improve its sustainability credentials. and rethink.

Packaging currently accounts for approxi- In our efforts to reduce the amount of mate- mately 45% of our total CO2 footprint and a rial used in our packaging, we implemented Resources & Environment Sustainability Report 2015 Building a circular mindset 14

2015 WHAT WE SAID 2015 WHAT WE DID various initiatives. One example is our PACKAGING PARTNERSHIPS “right-weighting” programme, which is all In 2015, we continued our efforts to expand about reducing the weight of glass in our the Carlsberg Circular Community (CCC), Carlsberg Circular Community packaging portfolio. We achieve this by a group of partners with whom we pursue Onboard 4 new partners Onboarded 2 new partners, EcoXpac and working with suppliers that possess the ​ a circular, zero-waste economy using the CP+B. Failed to achieve our target of 4 due to increased workload with existing partners latest technologies for reducing weight Cradle-to-Cradle® (C2C®) framework for ® without compromising on quality. developing and marketing new products. Obtain 1 more C2C certification Not achieved due to organisational changes and delays in certification process. Certification The CCC was initially made up of six found- expected in H1 2016 Simultaneously, we continued working to ing partners. At the World Economic Forum improve the rates of return of returnable in Davos in January 2015, we announced the Consumer awareness and engagement bottles from the market and to reduce addition of a new partner, EcoXpac, and in breakages at our breweries by collecting Q4 2015 we further added Crispin Porter + Increase number of companies conducting Not achieved as we only conducted campaigns consumer-facing sustainable packaging campaigns in 10 companies, 1 fewer than in 2014 and sharing best practices from across our Bogusky (CP+B). markets and breweries. Our partnership with EcoXpac is all about Innovations and life cycle assessments UPDATED LIFE CYCLE ASSESSMENT (LCA) developing the world’s first fully biodegrad- Launch 1 sustainable packaging innovation Not achieved due to organisational changes. TOOL AND PRODUCT ENVIRONMENTAL able and bio-based wood-fibre bottle for Commitment expected in 2016 FOOTPRINT PILOT beverages. To pursue this goal, we set up a Introduce updated LCA tool Introduced updated LCA tool in the In an effort to measure and compare our three-year project, supported by ­Innovation organisation packaging and products internally, we up- Fund Denmark and the Technical University graded our life cycle assessment tool. It is of Denmark (see more on page 16). Our now able to measure the impact of the filled second new partner, CP+B, joined the com- product, i.e. not just the packaging but also munity as a communication and PR partner. the beer inside it. Furthermore, through The Its task is to find and apply creative ways of Brewers of Europe we were actively engaged communicating about circularity and sustain- in the Product Environmental Footprint pilot ability, thereby ensuring that the initiatives initiated by the European Commission, which of the community maintain their consumer SUSTAINABLE PACKAGING aims to develop industry standards for calcu- relevance. lating environmental footprints. Reduce weight or change to packaging with lower environmental impact. REDUCE Increase reuse of packaging materials,

K R with the main focus on glass bottles.

N E I U Encourage consumers to recycle H

SELECTED KPIs SUSTAINABLE S

T

E packaging and increase the amount of E PACKAGING

recycled content in new packaging. R

Rethink packaging and waste, for REC LE ­example recycling of packaging 10 8 YC ­materials by channelling the material­ companies conducted campaigns partners in the Carlsberg into other products. to encourage consumers to recycle Circular Community Resources & Environment Sustainability Report 2015 Building a circular mindset 15

2016 COMMITMENTS

Onboard 4 new partners in CCC – total of 12 since 2014

Obtain 1 more C2C® certification – total of 2 since 2014

Increase the number of companies conducting consumer-facing sustainable packaging campaigns – more than in 2015

Launch 1 sustainable packaging innovation

Our ambition for 2015 was to expand the shrink wrap and paperboard multipacks and number of CCC partners to 10 and launch one are following up on these with our partners additional sustainable innovation. However, in an effort to develop materials with a due to the unexpectedly high level of interest higher end-of-life value. in our existing initiatives (including the Green Fiber Bottle), we contented ourselves with a ENGAGING CONSUMERS IN RECYCLING slightly slower pace of growth. Our ambition In 2015, we continued to run campaigns to for 2016 is to onboard four new partners, encourage more widespread and efficient which will mean a total of 12 new partners recycling among consumers. A total of 10 since the CCC was first established in 2014. companies launched 22 consumer-centric Furthermore, we will aim to launch a new recycling campaigns*. This is a significant sustainable packaging innovation in 2016. reduction since 2014, when 45 campaigns were conducted. The reduction was mainly CRADLE-TO-CRADLE® CERTIFICATION due to Russia, where only four campaigns Last year, we reported on the development were conducted in 2015 compared to 24 of our roadmap to assess and optimise our in 2014. We had hoped to ramp up these products according to the Cradle-to-Cradle® activities in 2015, but were unfortunately design principles. We had already achieved hindered by changing business priorities. bronze Cradle-to-Cradle® certification for our Carlsberg and Somersby cans in the UK, and Our 2015 initiatives included recycling ideas were related to recycling and sustain- thinking. Our approach is based both on the our goal for 2015 was to achieve a second zones at music festivals that we sponsor able use of resources (read more on page circular initiatives that we have been imple- C2C® certification. and employee volunteering. In 2016, we 22), and in general recycling was one of the menting for many years, such as returnable aim to expand our activities in this area areas in which we received most ideas. glass bottles, and on breakthrough innova- Due to organisational changes, we did not to more markets to reduce branded waste tions such as the Green Fiber Bottle. We manage to finalise the second certification, and encourage collection and recycling of OUR COMMITMENT have received an overwhelmingly positive but we are at an advanced stage and expect packaging materials. In 2015, we also en- The last few years have seen a significant response to our efforts and look forward to to complete the process in the first half of gaged in a crowdsourcing campaign called increase in interest in the circular economy inspiring others to make a real difference as 2016. We also collated the feedback from Cheers to Green Ideas, asking consumers across business, civil society and academia. we continue to make progress ourselves. our other C2C® assessments of the Draught- and others to give us their ideas on how to We are delighted to be pioneers in delivering Master™ keg, coating for refillable bottles, make beer more sustainable. Some of the some of the first concrete results of circular

* Within KPMG’s assurance scope. Resources & Environment

COLLABORATION IN ACTION CHEERS TO The Green Fiber Bottle any potential impact from using fibres will be included in the environmental assess- SUSTAINABLE ments. And while the bottle will degrade into environmentally non-harmful materials if Packaging is a very visible and tangible part discarded randomly, the intention is that it INNOVATION of the Carlsberg Group’s product offering. will form part of a proper waste management Unfortunately, it is also a major contributor system, just like today’s bottles and cans. to our CO2 emissions. Our approach is there- fore to try to optimise the use of resources Over the three-year development phase, we We are thrilled to cooperate with in a way that balances product integrity and plan, with our partners’ help, to optimise the functionality with environmental impact. bottle from an environmental perspective Carlsberg on developing a bottle that Brewing is our core business, not packaging, using both life cycle and Cradle-to-Cradle® will be both truly sustainable and appealing so we draw on the support of others along assessments. to consumers. The coming three years will the supply chain to achieve our aims. be both challenging and exciting, and we LESS ENERGY COLLABORATING WITH INNOVATORS We expect that the Green Fiber Bottle will can’t wait to put the bottle on the market! In 2015, in continuation of our collabor­ require less energy to produce than Martin Pedersen, CEO, EcoXpac ative approach within the Carlsberg Circular traditional packaging, due to the use of a Community (CCC)*, we kicked off a develop­ new fibre-drying technology. This will help ment project with Danish packaging com­ reduce dependency on fossil fuels in the pany EcoXpac – supported by Innovation manufacturing process. Fund Denmark and the Technical University of Denmark ‒ to develop a beer bottle COMMITTED TO COOPERATION made from sustainably sourced wood fibre. This collaborative project confirms our com- mitment to cooperation and underlines the FULLY BIODEGRADABLE PRODUCT importance of a circular economy for sustain- Together we are developing the Green Fiber able growth. If the bottle innovation comes to Bottle, which will be a landmark in sustain- fruition within the projected three-year period, able innovation. Its fibres will come from as we expect it to, it will provide an exciting responsibly managed sources, with trees new packaging type for our products and rep- replanted at the same rate that they are resent another important step on our journey harvested, or even faster. Furthermore, towards a circular, zero-waste economy.

* The purpose of the Carlsberg Circular Community (CCC) is to pursue a circular, zero-waste economy by using the Cradle-to-Cradle® (C2C®) framework when developing and marketing new products. Resources & Environment Sustainability Report 2015 Increasing brewing efficiency 17

2015 WHAT WE SAID 2015 WHAT WE DID

Utility leadership Activating our priorities Develop ISO 50001 energy management system Implemented the system at 10 breweries Improve utility benchmarking and targeting system Improvements made on performance tracking Increasing brewing and benchmarking Conduct utility audits and implement improvement Audits conducted in 10 markets – China, efficiency programmes focused on priorities in regions Laos, Sweden, Russia, Belarus, Azerbaijan, Kazakhstan, UK, Germany and France Our efforts to optimise resource con- and this was followed by regional Asian Develop total water management (TWM) concept/ Projects developed at 4 breweries in India sumption and manage environmental training courses on managing utilities. true water pricing to drive water conservation with full-scale impact in 2016 impacts start with our own brewing The audits identified areas requiring Analyse and plan for a low-carbon fuel strategy Analysis carried out with full guidelines for and logistics operations, and extend improvement and formed the basis of our in Asia new sites and extensions throughout the value chain into the action plans for the acquired breweries. communities in which we operate. The training courses, which were attended Technology pioneer by utility and maintenance teams, project Continue to develop efficiency solutions through Suppliers identified for specific projects The Carlsberg Group’s approach to this topic managers and plant managers, drew supplier partnerships in 2016 is threefold: we set global standards, drive on Group best practice and European Design resource-efficient and sustainable flagship On track; standardised plant design used for local improvements and implement innova- engineering standards. brewery plant and standard equipment units; new projects and extensions tive solutions. complete utility plant standardisation for water and wastewater Data from 2015 show that our focus on Our Environmental Policy sets the standards energy and water efficiency has already pro- Increase renewable energy consumption to change Renewable energy in Asia increased by 1% the energy mix and reduce our carbon footprint that our brewing and logistics operations duced positive results at many sites in Asia. in Asia have to meet and is activated through our As a result of our actions, we expect to see environmental management systems. In further benefits in China and the rest of Asia keeping with our commitment to continuous from 2016 onwards. However, from both a Future resources improvement, we set year-on-year targets financial and an environmental perspect­ Continue water source protection (focused on Risk evaluation conducted water availability and risk evaluation) for energy use, water consumption and CO2 ive, some of the plants have been assessed emissions. We also have a broader 2017 as below an acceptable standard for the Asia focus: respond to water scarcity issues 4 projects developed for implementation in H1 through advanced water reuse and recycling 2016 in India; conclusions from projects to be target to reduce each of these by 5-10% ­Carlsberg Group and have consequently focused on 2-3 sites in India and screening of used for other projects across the Group against a 2014 baseline. been divested. More specific information will sites in China be provided in next year’s report. During 2015, we increased the number Waste to energy of operations certified to the globally Our overall efficiency performance in 2015 Increase existing and evaluate new biogas recovery New opportunities evaluated for project recognised environmental management was flat, as a result of two contradictory opportunities proposals in 2016 standard ISO 14001 to 74, up from 69 forces. On the one hand, we are becom- in 2014. One specific objective was to ing better at achieving efficiency gains by integrate the 30 breweries acquired in 2014 focusing on maintenance as well as be- in Chongqing, China, into our environmental havioural and cultural improvements. This monitoring, reporting and performance positive trend was evidenced by the energy systems. We began with a series of audits, leaders’ programme in Denmark, imple- Resources & Environment Sustainability Report 2015 Increasing brewing efficiency 18

mentation of ISO 50001 at several brewer- In total, the volume produced in Asia made CASE STORY ies in Italy, Germany, Russia and Ukraine, up 18% of total Group volume in 2013 and and our best-in-class energy modernisation 29% in 2015. At the same time Eastern Eu- of the Kasztelan brewery in Sierpc, Poland. rope went from 39% in 2013 to 29% in 2015. Energy efficiency On the negative side, however, volumes Regional volume split in 2013 and 2015 continued to decline in Eastern Europe, across the Group causing our overall performance to remain 2015 flat, due to lower volumes and the conse- Asia Across our three regions, 2015 saw several EASTERN EUROPE 29% quent absence of relative efficiency gains. Eastern Europe examples of best practice at our local In Russia, our cooperation with the 18% Western Europe Asia’s growing importance is also nega- 42% breweries. United Nations Industrial Development 2013 tively affecting our performance, since our 43% Organization (UNIDO) resulted in Asian operations comprise a higher number WESTERN EUROPE implementation of the ISO 50001 energy of smaller breweries that, by their very In Poland, when extending and modernising management system, leading to better nature, are less efficient. The effects of this the Kasztelan brewery in Sierpc, we operational controls and performance managed to reduce relative electricity can be seen in our water, energy and CO2 management, despite a double-digit performance data. 39% consumption to below 5 kWh per hl and decline in production volumes. The Kiev 29% reduce heat consumption in brewing by brewery in Ukraine was rated best-in-class 30%. The key solutions employed were an in energy and water management in the energy-efficient upgrade of the brewhouse, SELECTED KPIs Carlsberg Group Annual Environmental hot water integration to avoid surplus and Awards scheme. reuse waste heat, a new canning line with Relative energy consumption Relative CO2 emissions Relative water consumption additional water reuse and non-electric ASIA (kWh/hl)* (kg CO2/hl)* (hl/hl)* heating features, and improved heat In the region, we launched an energy 32 9 5 recovery from compressors and flue gases. efficiency programme targeting boilers, 30 8 4 refrigeration and energy waste controls. The 28 initiative consisted of a utility management 7 3 26 training course for utility, maintenance and 6 2 24 plant managers, a series of energy audits, and the development of action plans at 22 5 1 country and regional level. 20 4 0

We further continued our work on changing 2009 2013 2014 2015 2009 2013 2014 2015 2009 2013 2014 2015 the heating energy mix in order to reduce * Within KPMG’s assurance scope. the use of coal and increase the use of natural gas and biomass for generating thermal energy. As a result, natural gas and biomass now account for 42% of total heat 10% 21% 8% consumption, while 39% of our breweries in the region are now fuelled by natural gas reduction in relative energy reduction in relative CO reduction in relative water 2 or biomass. consumption since 2009 emissions since 2009 consumption since 2009 Resources & Environment Sustainability Report 2015 Increasing brewing efficiency 19

In 2016, we will implement updated and 29 kWh/hl* compared to 29.4 kWh/hl in CASE STORY extended operational standards on energy, 2014, and our relative CO2 emissions also * water and wastewater globally, and acceler- improved slightly to 7.0 kg CO2/hl compared HVO trucks in Sweden ate our plans to deliver innovative and best to 7.3 kg CO2/hl in 2014. As previously practice solutions on efficient resource use. explained, our failure to improve further on 2014 can be attributed to the fact that in WATER CONSUMPTION 2015 the improvements achieved at some Water is a crucial resource for us, as essen- breweries in Eastern and Western Europe tial to our production as it is to the commu- were offset by the inclusion of less efficient nities in which we operate. We are therefore breweries in Asia. continuously striving to reduce the water consumption of our breweries. Compared with our 2014 baseline, we saw a minor improvement in specific energy During 2015, we implemented our first total consumption (kWh/hl) of 1.4%, while water management programmes at four brew- relative CO2 emissions (kg CO2/hl) from eries in India, which will lead to zero water production improved by 4.1%. discharge from the site. As a result, from 2016 the new water recycling systems will produce In total, around 7% of the thermal en- water of service water quality from process ergy intake to our production sites is from effluent. renewable energy sources. To further stimulate the demand for renewable en- The Carlsberg Group is continuously exploring ways of developing a lower-emission In 2015, our water efficiency remained at ergy, in 2015 we bought a total of 382,000 vehicle fleet and encourages local markets to consider new opportunities when tendering the same level as in the previous year at MWh of renewable energy certificates with for trucks. Carlsberg Sverige recently did this, agreeing favourable terms with Volvo to 3.4 hl/hl*. Compared with 2014, 56 sites guarantees of origin, corresponding to the purchase three trucks fuelled by hydrotreated vegetable oil (HVO). improved their ratios and we expect to see electricity consumption of Carlsberg’s brew- continued progress in line with our 2017 eries in Western Europe. This corresponds The Swedish fleet already included four electric hybrid and compressed natural gas (CNG) target going forward. to approximately 39% of the Group’s total trucks, but the acquisition of the new HVO trucks has made it even more climate-smart. electricity consumption. In some breweries, The use of HVO has been made possible by the construction of a new fuel station in ENERGY AND CO2 EMISSIONS the overall share of renewables ‒ from bio­ Länna, approximately 20 km outside the Swedish capital, enabling deliveries in the Greater To address the challenge of global climate gas, biomass and renewable electricity ‒ is Stockholm area. change, we have to reduce energy consump- as high as 70%. This is the case in India tion and select cleaner and renewable en- (five sites), China (one site), Nepal (one HVO, more commonly known as “green diesel” or “renewable diesel”, is produced from ergy sources in order to cut CO emissions. site) and Switzerland (one site). 2 residual waste from, for example, the slaughter industry. In many parts of Sweden, it The Carlsberg Group continues to strive, as is already mixed with traditional diesel, but running vehicles on pure HVO reduces CO2 we have in the past, to be among the top As part of our commitment to reducing emissions by up to 90%. performers in the industry. emissions, a dedicated project team will continue to pilot the energy management Our energy efficiency did not improve standard ISO 50001 in 2016/17 with a view significantly in 2015, remaining stable at to certifying additional selected plants.

* Within KPMG’s assurance scope. Resources & Environment Sustainability Report 2015 Increasing brewing efficiency 20

Our performance shows that we are on costs. Parallel to this, our Transport Con- COLLABORATION our way to achieving our 2017 targets, trol Tower in Poland provides an overview though more progress needs to be made of our inbound and outbound cross-border on energy efficiency. deliveries. Based on this intelligence, we can Selected partnerships eliminate partially filled truck deliveries and SUSTAINABLE LOGISTICS improve intra-Group sourcing. ENVIRONMENTAL PARTNERSHIPS AND COOPERATION Since transportation throughout our value In this, as in other areas, we can produce better results, faster, by working together with chain contributes to global CO2 emissions, Another useful tool, Telematics, has now other companies, interest groups and industry bodies. This is not only about sharing the we are striving to continuously improve been implemented in six markets. The responsibility for environmental impacts, but also about learning from one another and efficiency in this area. We are doing this system is proving to be an effective teaching speaking with a single, strong voice on the key environmental issues. Together, we can through training, better planning, measure- aid for ecodriving, since it can detect fuel- help develop common standards, cooperate more efficiently throughout the value chain ment and control, switching to less CO2- inefficient habits such as harsh breaking, and improve environmental management in our industry. intensive trucks, and using rail transport idling, accelerating and speeding. Monitoring wherever possible. We are also collaborating and communicating driver behaviour BEVERAGE INDUSTRY ENVIRONMENTAL ROUNDTABLE (BIER) with other industry players in our search for through the system has resulted in at The Carlsberg Group plays a leading role in the Beverage Industry Environmental innovative transport solutions. least a 5%, and in some markets as high Roundtable (BIER) – an organisation that brings beverage companies together to as a 10%, reduction in fuel consumption, influence global standards on the environmental and sustainability issues that are most With regard to training, we rolled out our thereby reducing the environmental impact relevant to our sector. This membership also brings us into contact with a number route planning and ecodriver courses to two of our logistics operations. of leading global organisations, such as the World Business Council for Sustainable additional markets in 2015, bringing the Development. total number of trained markets in Western TECHNOLOGY UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION (UNIDO) Europe to eight. To reduce truck mileage in We are continuing to introduce more efficient In 2015, we continued our collaboration with the United Nations Industrial Development Russia, we implemented our route plan- trucks in our global truck fleet, and in 2015 Organization (UNIDO) and continued to implement projects in Russia as part of our five- ning tool and conducted driver training, we increased the number of the newer and year partnership to improve the environment. thereby improving secondary distribution more efficient EURO 6 trucks in Western from warehouse to consumer, reducing fuel Europe to 164, up from 98 the previous­ year, CARLSBERG CIRCULAR COMMUNITY consumption and improving awareness of in line with legislation introduced in Europe Launched in 2014, the Carlsberg Circular Community is a joint venture between the safe driving. An upgraded version of the late 2015. In Sweden, we introduced three Carlsberg Group and selected partners. Together, we strive to create a circular, zero-waste route planning tool will be implemented in trucks running on vegetable oil, and this is economy using the Cradle-to-Cradle® (C2C®) framework when developing and marketing 2016, helping us to further reduce driving helping Carlsberg Sverige to reduce its overall new products. We currently have eight partners in the Community, and our goal is to distances, fuel consumption and associated CO2 footprint (see more on page 19). have 17 by 2017.

Y TR N AS -E SE RE S S SM M E EN ST T Y S & O O C P E T R RAW MATERIALS IM O S S U IS G P A R P IN E T N L I L T IE O C R R N Y A S C P P SELECTED KPIs U Carlsberg Circular DISPOSAL & BREWING & COLLECTION Community BOTTLING Inspired by Cradle-to-Cradle®

C O S N N R O S E I U T M A B M O E E ST M H RS U R A C O V F I N O I R & C H N A IO N T G CONSUMPTION A E IC UN M M of our thermal energy intake CO 7% is from renewable energy Resources & Environment Sustainability Report 2015 Increasing brewing efficiency 21

WASTE AND BY-PRODUCTS arising by implementing environmental 2016 COMMITMENTS Given the pressing problems of resource certification and learning from our mistakes. scarcity and climate change, we always aim Pilot a new ISO 50001 energy management system (EnMS) in selected plants; certifications in to use the materials needed for brewing as HEALTHY ECOSYSTEMS 2016/2017 as part of the Integrated Management System prudently as possible. Furthermore, we are Ecosystems are essential to our company’s continuously seeking new, smart ways to entire supply chain. We rely on healthy soil Implement a new revised standard for utilities management (including energy, water and waste­water) with coordinated action plans in key plants reuse our breweries’ waste and by-products. to grow the barley from which our beer is made and on clean, fresh water to produce Continue energy and water efficiency programmes across the Group One innovative way of getting more value the beer. While a thriving and efficient agri- Enhance compliance assurance for wastewater disposal, including new and upgraded from our raw materials is to recover organic cultural business is necessary for producing wastewater plants carbon from brewer’s used grains and the ingredients for our products, a signifi- yeast, and use it to produce biogas, which cant part of our environmental footprint is Continue the search for innovations in process, packaging and utility facilities with key suppliers is an excellent source of clean, renewable within agriculture. For many years, we have energy. This is now being done at 18 biogas been engaging directly with the farmers who recovery plants around the world, which grow our barley malt to make their farming together generate more than 9.9 million practices more sustainable. Various pro- m3 of biogas per year. In addition, many jects in our key growing regions ‒ including Carlsberg breweries are now reusing and Denmark, Poland, Russia, India and China ‒ recycling more than 96% of their total solid facilitate knowledge sharing between farm- waste and by-products for use in animal ers, provide technical support and identify feed and in the food processing industry. improvement opportunities through audits.

EXTERNAL COMPLAINTS We also operate in a number of regions 33 environmental complaints were made around the world where water is scarce. in 2015, all of which were investigated In these areas, we work especially hard to and mitigated in dialogue with relevant mitigate the risk of shortages. This is the stakeholders. One complaint related to case in India, for example, where we have a wastewater treatment issue in Malawi, implemented a total water management where we have been working with the approach. Looking ahead, two specific authorities to ensure compliance with all initiatives planned for 2016 are the pilot- relevant legislation and implementing an ing of a new ISO 50001 energy manage- improvement plan that includes an upgrade ment system (EnMS) in selected plants of the existing facilities. Additional upgrades and certifications in 2016/2017 as part of are being made at facilities in Vietnam and the Integrated Management System. On a Laos. In Nepal, we received a complaint more general level, we will continue to work regarding various environmental issues, towards more efficient use of resources in including air emissions and waste disposal. the coming year, and this will include scout- This has been discussed and settled with ing for innovations and best practice that the parties concerned. Most importantly, we facilitate savings. are continuously striving to prevent issues Resources & Environment

COLLABORATION IN ACTION CHEERS TO Crowdsourcing campaign • The J.C. Jacobsen Special Award ‒ mainly and competition – Cheers to for consumers to present fun and engaging GREEN IDEAS ideas that could lead to behavioural change Green Ideas The winners were chosen from six finalists, selected from 162 ideas submitted in 33 In the Carlsberg Group, we pride ourselves on countries. The jury included Carlsberg Group our brewing expertise. But in pursuit of our aim representatives from research & develop- Sustainable solutions bring together to integrate sustainability throughout the value ment, marketing, sustainability, innovation innovation, business know-how, responsibility, chain, we also recognise that we have much and supply chain. and a playful sense of imagination. We know to gain by cooperating with and learning from others operating outside our traditional sphere. The Cheers to Green Ideas Award went to they occur the most when people from all sectors There are myriad solutions being implemented Guillermo Luque Consuegra and Michael collaborate. The Cheers to Green Ideas initiative in other businesses around the world, and Malott, who proposed using microalgae in, many of these could be adapted and used to for example, wastewater treatment or the is a testament to the power of co-creation help us advance our own sustainability ambi- creation of biomass at the Group’s breweries. for a sustainable future tions. The question is, how to find them? Laura Storm, CEO, Sustainia The J.C. Jacobsen Special Award went to FIRST EVER CROWDSOURCING CAMPAIGN Søren Højland Boesen. He submitted five In September 2015, in partnership with ideas, and his winning proposals were to make Copenhagen-based think tank Sustainia, lightweight crates inspired by nature and to we launched Cheers to Green Ideas, a make magnetic, biodegradable bottle caps that crowdsourcing campaign and competition. would be fun and engaging for the user, rather Organisations, companies and members of than just another piece of metal waste. the public were invited to get engaged and tell us how to make Carlsberg beer more The winners, announced in December 2015 sustainable. The ideas could relate to any at the Sustainia Award Ceremony in Paris, aspect of beer production, from raw materi- received USD 20,000 and USD 10,000 respect­ als and the brewing process to transport and ively, and their ideas will be further explored packaging. They also needed to inspire posi- with experts in the Carlsberg Group and our tive change in consumer behaviour to help partners in the Carlsberg Circular Community. drive a more sustainable future. ENCOURAGING RESULTS AWARDS AND WINNERS AND VALUABLE LESSONS Two awards were offered: It was very encouraging to see an extremely high level of engagement in the campaign • The Cheers to Green Ideas Award ‒ aimed from the outside world. We now have a primarily at established companies or entre- strong feeling for what can be achieved when preneurs with a viable sustainability concept we join forces with other stakeholders.

SUSTAINIA Health & Well-being 02

Health & Well-being

OUR COMMITMENT • Creating a culture of responsible drinking

OUR PRIORITIES • Promoting moderate consumption • Preventing underage drinking and drink driving • Marketing our products responsibly

23 Health & Well-being Sustainability Report 2015 Creating a culture of responsible drinking 24

Our commitment Creating a culture of responsible drinking

Articulating Collaborating Activating our priorities – our commitment with others targets for 2017

We are committed to creating a culture of Effective action to address alcohol misuse requires • All print communication above A4 and digital responsible drinking by promoting moderate collaboration across the industry and beyond. and TV commercials to carry responsible drinking consumption of our products and addressing messages alcohol-related harm in society. To address irresponsible drinking effectively, everyone ‒ • All Group companies to implement at least from retailers, bar-owners, educators and parents to law one responsible drinking programme We therefore aim to celebrate the positive aspects of enforcers, role models and, not least, consumers them- • 100% of consumer-facing primary packaging to moderate beer consumption and to position beer as a selves ‒ needs to be involved. Effective regulation must be carry responsible drinking symbols to discourage relevant and responsible choice with a role to play in the supported by concrete, targeted actions. We therefore work harmful drinking1 “good life” to which modern consumers aspire. However, closely with organisations across our industry to define • 80% of consumer-facing primary packaging in irresponsible drinking does take place, and we are our commitment and find meaningful ways of addressing Western Europe to carry information on ingredients committed to combating it. alcohol-related issues together. and nutritional values • Annually reach at least 20 million consumers through responsible drinking messaging and campaigns

1 Part of global industry commitments for 2018. Health & Well-being Sustainability Report 2015 Encouraging responsible consumption 25

EncouragingENCOURAGING RESPONSIBLE responsible CONSUMPTION consumption

Why no "Car" in Carlsberg? Find out on page 31. SUPERMARKET >1,100 vehicles operated with alco-locks in the Nordics Don’t drink and drive. 36 2.3 million responsible drinking consumers reached at festivals with responsible initiatives involving drinking messages retailers 78% of our companies conducted responsible drinking campaigns

Celebrate Responsibly >30 million consumers reached through responsible drinking campaigns Health & Well-being Sustainability Report 2015 Promoting moderate consumption 26

CASE STORY

Activating our priorities Chongqing Brewery Group Promoting moderate promotes responsible drinking consumption

In line with our desire to be part of the articulated more clearly. With this in mind, solution to the problems caused by we have now converted two of our 2017 tar- alcohol misuse, we are taking action gets into our standard policy procedures and to promote moderate consumption. replaced them with two new targets reflect- ing our increased commitment to engage By bringing people together, beer plays consumers and contribute to globally agreed a positive role in society. If consumed in health objectives. Our targets are under- moderation, beer can be part of a balanced pinned by annual commitments that help to lifestyle. At the same time, we also know it deliver on our ambition to reach consum- can cause harm to society when misused. ers and collaborate with stakeholders more For this reason, we are implementing activ­ clearly (see our targets on page 25). The misuse of alcohol is a complex social challenge that manifests itself in different ways ities aimed at reducing excessive consump- in different parts of the world. tion. These activities reflect not only the COMMUNICATING THROUGH OUR BRANDS stance of the Carlsberg Group, but also that Experience has shown that one of the best In an effort to promote responsible drinking in China, in October 2015 CADA (China of the United Nations in its newly adopted ways to encourage moderate beer consump- Alcoholic Drinks Association) organised its first ever National Responsible Drinking Day. Sustainable Development Goals to ensure tion is through direct engagement with Carlsberg’s Chongqing Brewery Group joined forces with other major brewers in China, to healthy lives and promote well-being for consumers. As a global beer company selling participate in the day’s events. Beijing, Shanghai, Guangzhou and 300 other smaller cities all. Moreover, the activities align with the our products in more than 140 markets, were involved. WHO’s target of a 10% relative reduction in we are in a strong position to engage in the harmful use of alcohol by 2020. dialogue with consumers around responsible Chongqing Brewery Group supported the development of consumer education articles and drinking and to drive behavioural change. activities around responsible drinking. These were featured in local newspapers and online, Leveraging our position as a consumer- and included a responsible drinking digital puzzle game and a responsible drinking quiz oriented company, we have the opportunity Increasingly, we are using our brands to aimed at young adults. The game quickly went viral on WeChat, an equivalent of Twitter and responsibility to engage directly with communicate the Carlsberg Group’s stance and the most important social media platform in China, where more than 15,000 people consumers to work across our markets and on responsible drinking, as we believe this played it. In addition, over 10,000 pamphlets providing information on responsible drinking collaborate with others. is the channel through which we can reach were handed out to consumers, together with small gifts. consumers most effectively. In total, 78% REVISED 2017 TARGETS of our companies conducted responsible Reducing alcohol misuse is important for communities around the world. Events like this During 2015, we reviewed our 2017 targets drinking initiatives through more than 230 show that, by working together and coordinating activities, we can achieve greater reach relating to moderate consumption and events and campaigns. One example was and impact with our responsible drinking message. concluded that our ambitions needed to be Tuborg’s Drink with Respect campaign, Health & Well-being Sustainability Report 2015 Promoting moderate consumption 27

2015 WHAT WE SAID 2015 WHAT WE DID which was first run at the Roskilde Festival around football pitches, with the games in Denmark. On that occasion, it reached attracting an aggregate annual viewership more than 50,000 consumers, and it has of over 3 billion. Develop a dedicated responsible drinking Development started and will continue in 2016 subsequently become a core element of the programme for a flagship Carlsberg brand Tuborg brand’s marketing communication. Moving ahead, we are looking forward to Continue to implement our global commitments Progress made on reaching consumers and on brand involvement, but more work needed on the UEFA EURO 2016™ European football internal systems and procedures on market level Other Group brands have been used to championship. Our sponsorship of this high- Embed responsible drinking messaging in major Responsible drinking messaging part of Premier promote moderate consumption at other profile event provides a great opportunity sponsorship deals League and music festivals festivals. For example, at the GreenFest to reach consumers and our communication music festival in St Petersburg in June 2015, will certainly include a dedicated respon­ we communicated with consumers about sible drinking campaign. responsible drinking and recycling. Carlsberg 2016 COMMITMENTS Bulgaria and Baltika Breweries used the In 2015, one of our specific ambitions was Tuborg brand to communicate messages to develop a bespoke responsible drink- Majority of relevant Carlsberg markets to participate in Global Beer Responsibility Day (GBRD) around responsible drinking at various ing programme for our flagship Carlsberg summer festivals in 2015, reaching 191,000 brand. Work began on this initiative and will Reach 5 million consumers with our activities around GBRD people in total. On Global Beer Responsibility continue in 2016. Reach 15 million consumers with our activities to promote responsible drinking and discourage Day, Malaysia used the Carlsberg brand to irresponsible drinking (in addition to GBRD) raise awareness of the dangers of excessive INDUSTRY-WIDE COLLABORATION drinking, reaching more than 15,000 We continued our cross-industry collabor­ Drive progress towards reaching the global commitments set by leading alcohol producers in 2013 to reduce harmful drinking consumers. Carlsberg Croatia communicated ation last year, notably organising the first a series of responsibility messages through worldwide industry collaborative effort to Promote responsible drinking around UEFA EURO 2016™ its local Pan brands, and Carlsberg Italia promote the responsible consumption of raised awareness about the dangers of binge beer – the Global Beer Responsibility Day drinking through the Angelo Poretti brand, (see page 31 for details). Hundreds of global­ highlighting the effects of alcohol through and local brewers and beer associations were the use of “beer goggles” at the Milan involved in the event, which reached an esti- International Expo, reaching over 100,000 mated 1.5 million consumers on the day. consumers. In many markets, our efforts are coordin­ In total, our responsible drinking activities ated through local brewery associations, at music festivals and other events reached bringing together national brewing organi- SELECTED KPIs more than 2.3 million people. sations and other stakeholders. In 2015, activities executed as part of these associa- In general, event sponsorship gives us tions reached over 30 million consumers. global exposure and the opportunity to 78% >230 54% embed responsible drinking messages into In October 2015, the China Alcoholic of our companies responsible drinking of our primary packaging our product or brand marketing. Our as- Drinks Association (CADA) organised conducted responsible campaigns conducted carried responsible drinking sociation with the English Premier League a countrywide event – the National drinking initiatives guiding symbols* enables us to continue displaying moderate Responsible Drinking Day. Our Chongqing drinking taglines on the perimeter boards Brewery Group participated in this, along * Within KPMG’s assurance scope. Health & Well-being Sustainability Report 2015 Promoting moderate consumption 28

with the other major brewers in China. The social issues connected with excessive CASE STORY Beijing, Shanghai, Guangzhou and 300 alcohol consumption vary from one market other smaller cities were involved. or region to another. To make our campaigns as relevant to consumers as possible, over Partnership to promote NON-ALCOHOLIC ALTERNATIVES the next two years we will further strength- Cross-industry collaboration is one way to en local market initiatives to promote a culture of responsible promote responsible consumption. Another responsible drinking. While working within is to provide consumers with a wider choice a centrally defined framework, local staff alcohol consumption of low- and non-alcoholic products. To this will be encouraged to apply their knowledge end, we continued the expansion of these to identify and address the most critical products in 2015. In some of the well- issues relating to irresponsible drinking in Producers of beer, wine and spirits partner with retailers, bars and developed non-alcoholic beverage (NAB) their particular markets. restaurants to promote a more responsible alcohol culture markets, this category now makes up over 5% of the total beer market. Moreover, In 2014, the Danish Ministry of Health set a series of health targets, one of which was to we have seen growth rates of over 20% reduce the harmful use of alcohol and postpone the start of alcohol consumption among in the beer mix (0.0% beer mixed with adolescents. In 2015, the Ministry supported the formation of partnerships to achieve the juice) category. health goals, and the producers of beer, wine and spirits partnered with retailers, bars and restaurants to promote a more responsible alcohol culture. During 2015, we saw continued strong growth of our NAB portfolio, which includes The first, Compliance with Age Limits, aims to reduce the number of minors who products such as Nordic, Tourtel Twist and illegally buy alcohol in retail outlets by providing information and training to retailers. Baltika 0. In Denmark, the volume growth The campaign uses social media to reach the minors, and currently has more than of Nordic has doubled since its introduction 25,000 fans on Facebook. in 2014. Similarly creative approaches are being used for the second project, Safe Night Life, which focuses on preventing minors from illegally buying alcohol in bars and on reducing sales to visibly intoxicated customers. The partnership is a powerful forum for a nationwide effort and sending a clear signal that the brewing industry has a key role to play in preventing alcohol misuse. Health & Well-being Sustainability Report 2015 Preventing underage drinking and drink driving 29

2015 WHAT WE SAID 2015 WHAT WE DID

Increase share of volume carrying responsible Re-introduced a stricter, more specific set of drinking symbols Group-wide requirements and roll-out plan for Activating our priorities 2016. Overall volume decreased due to changes in definitions Preventing underage Continue to implement our global commitments 44 campaigns conducted in our markets aimed at preventing underage consumption, reaching an audience of 7,5 million. A further drinking and drink driving 55 initiatives conducted aimed at addressing drinking and driving

The Carlsberg Group has a number of and beer companies are succeeding, further long-standing commitments to reduce efforts are still needed in many markets both underage drinking and drink driv- to build a culture of responsible alcohol 2016 COMMITMENTS ing. While we are cautiously optimistic consumption. about progress in these areas in some Increase the share of volume carrying responsible drinking guiding symbols markets, others require much more work. ADDRESSING UNDERAGE DRINKING In 2015, we intensified our efforts to combat Develop a Group-wide don’t-drink-and-drive campaign for the Carlsberg brand In the UK, for example, partnerships underage drinking with a series of aware- Increase the number of market-level collaborations with retail partners to specifically address between communities, producers and ness-raising and educational programmes. underage consumption authorities have helped to reduce alcohol- We were part of the launch of the largest related traffic accidents by 44% since 2000. cooperative effort in the history of the global Furthermore, the percentage of frequent beer industry, the Global Beer Responsibility drinkers, binge drinkers and those drink- Day (read more on page 31). In 10 coun- ing over the recommended limits on their tries, our employees and partners carried heaviest drinking day fell between 2005 and out ID checking programmes at supermar- 2013. In Denmark, the number of people kets, off-licences and other retail outlets, that crossed the high-risk limit of alcohol provided tips and training to the staff, and consumption was reduced by 20% between conducted targeted education campaigns. 2010 and 2014. In Russia, meanwhile, Baltika Breweries continued to run its Beer Patrol campaign to While these statistics give us reason to be- prevent sales to underage drinkers during 12 lieve that the efforts of governments, NGOs activities in 2015.

SELECTED KPIs

markets involved in Global 10 Beer Responsibility Day Health & Well-being Sustainability Report 2015 Preventing underage drinking and drink driving 30

As members of the International Alliance for In total, we are conducting 36 activities COLLABORATION Responsible Drinking (IARD), we took part globally with different retail partners. As in the development of the Guiding Principles of 2016, we intend to implement a more for the Responsible Retailing of Beverage targeted retail engagement strategy. Selected memberships Alcohol. These set a standard that both retailers and producers can support, taking PREVENTING DRINK DRIVING and commitments into account common issues and national Our response to the drink driving issue is contexts, in order to contribute to the re- centred on prevention. For example, we If we are to successfully promote responsible consumption and address alcohol-related duction of alcohol-related harm. The retail sponsor designated-driver programmes issues, there is a clear need for cross-industry collaboration. The Carlsberg Group guidelines can be broken down into five and safe-travel programmes that promote therefore works closely with various organisations and industry bodies to define and primary categories: enforcing the minimum ride shares, free taxis and public transport. implement common commitments. One example is our participation in the development purchase age; responsibility and awareness In this, as in other areas, collaboration of the Guiding Principles for Responsible Retailing of Beverage Alcohol, coordinated by campaigns; venue and community safety; across a range of stakeholders, including the International Alliance for Responsible Drinking described below. information and guidelines; and server those responsible for the enforcement of training and responsible hospitality. drink driving laws, will be the key to solv- INTERNATIONAL ALLIANCE FOR RESPONSIBLE DRINKING (IARD) ing the problem. IARD is a not-for-profit organisation dedicated to addressing the global public health Companies in the Carlsberg Group have issue of harmful drinking and promoting responsible drinking worldwide. IARD acts as the been collaborating with retail partners for In 2015, as part of Global Beer Responsibil- Secretariat to measure progress against the Producers’ Commitments to Reduce Harmful many years. Since 2003, we have sup- ity Day we ran a campaign with the restau- Drinking. ported a National Award Scheme in the UK rant chain TGI Fridays in Denmark to raise THE BREWERS OF EUROPE (BOE) called Best Bar None (BBN) ‒ a nationally awareness of the dangers of drink driving BoE brings together national brewers’ associations from 29 European countries, giving a coordinated programme aimed at reducing (read about other initiatives on page 31). voice to over 7,000 breweries. One notable initiative launched by BoE was the European alcohol-related crime and disorder through Beer Pledge in 2012. The Pledge supports EU Member States in reducing alcohol-related positive relationships with retail outlets and These on-the-ground activities are helping harm by improving consumer information and ensuring responsible advertising. local officials. Participating outlets can win us to address the risks related to alcohol the title of Best Outlet in their respect- use. However, while we are pleased with WORLD FEDERATION OF ADVERTISERS (WFA) ive town or city. Venues are judged on what has been achieved so far, we know WFA is a global organisation that represents the common interests of marketers. several criteria, including the contribution the job is by no means done. Through WFA, leading beer producers have joined forces with other categories in the they make to their local community and the Responsible Marketing Pact, agreeing on common standards for responsible advertising extent to which they offer their customers Looking ahead to 2016, we will strengthen and marketing, and overseeing their implementation. The ultimate goal is to reduce the a safe night out. As things stand, 75 towns the processes that ensure implementation visibility and minimise the appeal of alcohol to minors in marketing communications. and cities in the UK operate a local scheme of our global commitments across our mark- and there are plans to make the concept ets, while harmonising more of our local international. Carlsberg UK sponsors two activities to streamline our efforts and local BBN schemes: in Northampton (home accelerate progress. to our head office) and Birmingham (where we have a logistics depot). Health & Well-being

COLLABORATION IN ACTION CHEERS TO Global Beer Responsibility Day Beer Union made presentations to over 80,000 retailers, sales personnel and consumers on RESPONSIBLE preventing the sale of alcohol to minors. In September 2015, the Carlsberg Group joined with other global brewers, local CARLSBERG WITHOUT THE “CAR” DRINKING! brewers and beer associations to mark the For the Carlsberg Group, GBRD is just one first Global Beer Responsibility Day (GBRD), element of its year-round commitment – both a worldwide initiative to highlight collabo- locally and globally – to promote responsible rative efforts to promote responsible beer consumption of its products. consumption and address issues around Beer plays an important role in local alcohol misuse. Carlsberg organised GBRD activities in 10 cultures and economies. Together with our markets globally, involving more than 5,500 stakeholders, we want to contribute to the positive GBRD is the largest initiative of its kind in employees and 100,000 retailers, and reaching influence of beer in society by promoting our the brewing industry’s history. Across the some 1.5 million consumers. In Copenhagen, products to be consumed responsibly as part of a industry, more than 100,000 employees in the Carlsberg Group’s iconic 10-metre logo 62 countries were involved in executing ID at the top of its 21-storey head office build- balanced and healthy lifestyle. checking programmes at around 650,000 ing was modified to remove the “Car” from Cees ‘t Hart, President & CEO, Carlsberg Group retail points, providing advice and training for “Carlsberg”, emphasising the Group’s anti- servers and sellers, and conducting targeted drink-driving stance. In association with the lo- education campaigns that reached in excess cal taxi app DriVR, the local Danish operations of 8,000,000 people. also provided discounted taxi rides home for anyone out enjoying a drink in the capital. CREATIVE IDEAS AROUND THE WORLD In Italy, Birrificio Angelo Poretti invited visitors WORKING TOGETHER FOR BEST RESULTS to its stand at the Milan International Expo Issues leading to irresponsible drinking are to perform everyday activities while wearing complex, and there is no universal solution. “beer goggles” that simulated the experience We look forward to continuing the global of being drunk. In Malaysia, “ambassadors” collaboration in this area. We know that by Don’t drink and drive promoted responsible drinking at one of the making Global Beer Responsibility Day a truly country’s highest-profile shopping centres. collaborative effort, we will achieve broader In Russia, Baltika Breweries and the Russian reach and greater impact. Health & Well-being Sustainability Report 2015 Marketing our products responsibly 32

CASE STORY

Activating our priorities Improving consumer Marketing our information products responsibly Under current EU food legislation, it is not mandatory to provide ingredient and nutritional information on the packaging of alcoholic beverages of more than 1.2% ABV. However, the Carlsberg Group believes that consumers should be offered accurate and balanced We make every effort to ensure that will be driven through training, pre- information about the drinks they purchase. our communication carries the right production verification and a Group-wide messages and reaches the right people. governance system in 2016. We will Along with other players in the industry, we have committed to providing ingredient continue to support the establishment of and nutritional information on our beer products (>1.2% ABV) on packaging and online Our Marketing Communication Policy, and mechanisms for independent self- platforms, in addition to what is already required locally. introduced in 2009, reflects the Carlsberg regulation at both market and global level. Group’s overall commitment to promoting Self-regulatory bodies are already in place This move will help consumers to better understand the natural ingredients that go into responsible drinking and sets the standards for in 74% of our markets. a beer – water, malted barley and hops as an example for the Carlsberg brand, as well our consumer interactions. These standards as showing that, contrary to popular perception, beer is not especially high in calories apply to all our Group companies, as well as to DIGITAL GUIDELINES DEVELOPED compared with other alcoholic beverages. suppliers of commercial marketing materials, In recent years, there has been a big and must be implemented at all consumer increase in digital advertising and social Furthermore, Carlsberg products that contain alcohol will all carry responsible drinking contact points across all media channels. media marketing. Against this backdrop, we guiding symbols informing consumers of the risks associated with underage drinking, set a specific target for 2015 to create new drinking during pregnancy or drink driving. The creative global marketing work for our digital marketing guidelines that would pre- international premium brands is checked vent our marketing communication reaching centrally for compliance with the standards, or appealing to minors. These guidelines are while our local brands are required to go now embedded in our Marketing Commu- through the same process at market level. nication Policy, which is being updated and will be ready for launch in early 2016. This, In 2015, we had no official instances of non- and the corresponding marketing commu- compliance. Following changes in Finnish nication training programme, was delayed regulations, we were involved in discussions last year due to organisational changes. As with the Finnish authorities on three specific we were expecting to use the new training marketing communications, but no official programme in 2015, we did not train any complaints were made. colleagues through the e-learning tool we had used in previous years. The training It did become clear, however, that some materials and the e-learning tool are, how- markets are better at complying with the ever, now ready for implementation and will verification process than others. Compliance be rolled out in 2016. Health & Well-being Sustainability Report 2015 Marketing our products responsibly 33

In 2014, we developed a Responsible Denmark in late 2015 (see page 31). It will 2015 WHAT WE SAID 2015 WHAT WE DID Drinking Policy for the Carlsberg Group. This be made globally available in 2016, and states our position on responsible drinking, other similar campaigns will follow. Update policy and introduce digital guidelines Policy updated, including digital guidelines; roll- defines our approach to it, and sets out what out delayed actions we should take above and beyond The Carlsberg Group prioritises the well- Implement actions to ensure that all print 65% of our companies have moderation lines the basics ‒ such as offering consumers an being of consumers by being transparent communication above A4 and digital and on all branded communication informed choice, expanding consumer choice about the ingredients in our beer, its nu- TV commercials carry responsible drinking messages through product innovations such as non- tritional value and by promoting moderate alcoholic beers, and leveraging their role in consumption. This information is already promoting the responsible consumption of made available on many Carlsberg products our products. today, either in compliance with regulatory 2016 COMMITMENTS requirements or in support of voluntary An addition to the Group’s approach to industry initiatives. ensuring that its marketing is balanced and Roll out updated Marketing Communication Policy to all markets helps to create a culture of moderation is the As of 2016, we will expand the information Implement and run new marketing communication training courses placement of responsible drinking messages displayed on our consumer-facing packaging across our marketing communications on and digital platforms. This applies to all Introduce new consumer information on primary packaging and online digital, TV and print platforms. Carlsberg beers in all markets, representing a significant step towards even greater PLUG & PLAY CAMPAIGNS transparency. We believe it will strengthen To streamline our messaging and make the image of beer by helping consumers to it easier for local markets to promote understand its nutritional benefits while at responsible drinking, we recently started the same time safeguarding their health. developing ideas for some centrally produced plug & play campaigns. One of these, a don’t-drink-and-drive campaign using the Carlsberg brand, was piloted in

SELECTED KPIs

of markets have 74% self-regulatory bodies in place People & Policies 03

People & Policies

OUR COMMITMENT • Working the Carlsberg way – everywhere

OUR PRIORITIES • Improving health & safety • Strengthening ethical standards • Respecting labour & human rights • Engaging with communities • Sourcing responsibly

34 People & Policies Sustainability Report 2015 Working the Carlsberg way – everywhere 35

Our commitment Working the Carlsberg way – everywhere

Articulating Collaborating Activating our priorities – our commitment with others targets for 2017

Our aim is to protect, develop and engage our Across our Group-wide network, we share • Increase diversity and female representation at employees, and to make a positive contribution to expertise and best practices aimed at reducing senior leadership level the communities in which we operate. our environmental and social impacts. • Reduce the Group lost-time accident rate by 40%

We do this through the Carlsberg way of working, which Through collaboration with suppliers, we strive to improve involves setting the right standards in our policies and standards throughout our supply chain. We also engage guidelines and following up on our performance through with external and internal stakeholders on sustainability- reporting and monitoring. In this way, we also manage risks related issues, as well as local and global organisations and reap the benefits of a proactive stance on global issues. to create value for society as a whole. This is for example See more 2017 targets in each done through World Federation of Advertisers, where we section in the coming pages. align on standards within marketing communication with other companies. People & Policies Sustainability Report 2015 Lorem ipsum 36

The Carlsberg Group’s CSR policies are: Activating our priorities • Health & Safety Policy, setting safety standards in the workplace • Labour & Human Rights Policy, outlining People & Policies our commitments to universal employee Working the Carlsberg rights way – everywhere • Business Ethics Policy, stating our position on issues such as anti-corruption and bribery • Community Engagement Policy, providing a framework for our community invest- The Carlsberg Group operates across ments many different countries and cultures. • Marketing Communication Policy, contain- This diversity makes it all the more ing standards for communicating about important for us to have a clear and our products in a decent, truthful and structured framework to guide decision- ethical way making in key areas such as employee • Responsible Drinking Policy, setting out health & safety, supplier and licensee principles for responsible drinking and standards, and anti-corruption. the practices to which we commit as a responsible brewer Our CSR policies provide that framework, • Environment Policy, setting out our stand- helping employees and suppliers to maintain ards for environmental management high ethical standards in their daily work. • Supplier & Licensee Code of Conduct, These and other policies are publicly outlining the minimum standards that our available at www.carlsberggroup.com/ suppliers and licensees must observe in sustainability, highlighting our commitment their day-to-day business to transparency and our willingness to engage in dialogue with our stakeholders. ORGANISATIONAL CHANGES Due to challenging market conditions, The Group’s CSR policies will be reviewed in especially in Russia and eastern China, we 2016 as part of a general review of all our had to reduce our headcount by around Group policies. We do this on a regular basis 1,700 colleagues in 2015. We are fully aware in order to keep up to date with society’s that loss of employment can have a major evolving demands and to reflect changes in impact on a person’s life, and with this in our operating environment. mind we made every effort to manage the process with respect for the individual and In the following pages, you can read more in accordance with local legislation. Many about our efforts to create a safe and fair employees were offered outplacement workplace for our employees through the coaching, training and advice to help make implementation of consistent standards the transition phase smooth and enable them and policies. to continue their careers outside Carlsberg. People & Policies Sustainability Report 2015 Health & safety 37

awareness and generating continuous im- 2015 WHAT WE SAID 2015 WHAT WE DID Activating our priorities provement. We also continued phase 3 of our OHSAS 18001 certification for Western Continue implementation of the SHAPE Self-assessment deployed; formal SHAPE Europe. This is the industrial world’s premier programme, policies and standards assessment to start in Q2 2016 Health & safety occupational health & safety management Continue phase 3 of the OHSAS certification OHSAS certification on track for completion system standard, and we are on track to for Western Europe in Western Europe in 2016 complete certification in Western Europe Complete phases 1 and 2 of the EHS Leadership Phases 1 and 2 behind for Eastern Europe and during 2016. Programme Asia due to travel restrictions

AN ANALYSIS OF RISKS Our work in 2015 was guided by an analysis Deeply embedded in our culture, is a of risks that helped us understand where our 2016 COMMITMENTS 2017 TARGETS concern for the safety of people in our most serious problems lay. Armed with the organisation and for everyone else with results of this analysis, we were able to target Complete plan for Western Europe OHSAS 18001 whom the Carlsberg Group interacts. our health & safety improvement efforts for certification by end of 2016 maximum impact. Areas brought into sharper Roll out formal SHAPE assessment programme But our approach is not static. We apply a focus were “hand and finger safety”, “slips, Continue country and local implementation of continuous improvement mindset to health trips and falls” and “traffic safety” (interactions EHS Leadership Training Programme & safety in the same way as we do to areas between forklift trucks and pedestrians). We Achieve a Group lost-time accident rate of 5.7 40% reduction in the Group lost-time accident rate such as environmental management, quality will continue to pursue this approach in 2016 and efficiency. and beyond, and to develop new programmes.

ACHIEVING ZERO ACCIDENTS LEADERSHIP COMES FIRST The ultimate objective of continuous im- We believe that by showing leadership ‒ set- provement is zero accidents, and we are ting visions, pursuing goals and communicat- working consistently towards this goal. One ing about them ‒ we encourage the behaviour DID YOU KNOW? way of achieving it is by changing habits. we want all employees to adopt in order People stay safe when they stick to proven to achieve effective systems of continuous OHSAS 18000 is an international habits that minimise risks, such as wearing improvement. For the Carlsberg Group to occupational health & safety personal protective equipment and observ- achieve zero accidents, everyone will need to ing correct procedures when performing play the role of health & safety leader. management system specification. their daily activities. With this in mind, we use a systematic approach to health & As part of our leadership vision, 2015 safety to steadily increase the number of saw continued adoption and use of the 10 employees who practice zero-accident habits Environment, Health & Safety (EHS) Guiding SELECTED KPIs at work. Principles, which provide a strong foundation for generating cultural change. By way In 2015, we continued implementing SHAPE of example, the principles state that “all (Safety and Health Assessment Program accidents are preventable” (principle 1) and 16% 8% Excellence), deploying the self-assessment urge employees to “be proactive instead of improvement in lost-time improvement in days lost programme as a key tool for enhancing reactive” in preventing accidents (principle 3). accident rate since 2014 rate since 2014 People & Policies Sustainability Report 2015 Health & safety 38

During 2015, we aimed to complete phases The investigations into these accidents led to SELECTED KPIs 1 and 2 of the EHS Leadership Training a series of new safety measures, including Programme. This was done in some areas, the installation in the Group’s trucks of GPS Lost-time accident rate in Days lost rate in Production* * but unfortunately travel restrictions meant systems with special safety features. Production (per 1,000 employees) (per 1,000 employees) that implementation of phases 1 and 2 in 11 145 Eastern Europe and Asia fell behind sched- ACQUISITIONS AND CULTURAL CHANGE 10 135 ule and will continue in 2016. Nevertheless, Acquisitions made in China in 2014 brought 9 many good practices were initiated across existing companies with their own histories 125 8 Asia and Eastern Europe. One example is and behavioural patterns into the Carlsberg 115 7 the road safety guidelines introduced to Group. Audits conducted at each new loca- 105 promote safe driving at Baltika Breweries in tion revealed a total of 3,000 EHS items that 6 Russia. The guidelines are intended to raise required follow-up. We are pleased to report 5 95 safety awareness not only among the 3,000 that 90% of these “gaps” were closed within in-house drivers, but also among the 5,000 the first three months. 2013 2014 2015 2013 2014 2015 contractors driving for the company. Maturity levels still vary greatly across Lost-time accident rate in Days lost rate in Logistics* * MONITORING PROGRESS our operations in China, but our efforts to Logistics (per 1,000 employees) (per 1,000 employees) In order to track progress in health & safety, improve health & safety have yielded certain 19 320 we strive to correlate our standards, goals, lessons that are relevant across the board. 18 300 objectives and targets with performance Specifically, top management focus and 280 metrics and the facts surrounding health investment are essential, and subsequently 17

& safety incidents. This not only serves to strong local ownership and leadership, ac- 16 260 keep track of our own performance, but also companied by a passion to create a genuine 15 240 enables us to communicate clearly about it EHS culture, are the keys to getting results. with others. 14 220 In 2014, we implemented a zero-accident For example, in 2014 the Carlsberg Group’s programme aligned with the Carlsberg 2013 2014 2015 2013 2014 2015 lost-time accident rate was 7.9. Our 2015 Group’s EHS strategy, which set the stage target was 7.2, and we exceeded this target for the results we are seeing today in Group lost-time accident rate Group days lost rate (per 1,000 employees) (per 1,000 employees) by achieving a lost-time accident rate of accident reductions. All along, our approach 10 140 6.6, a reduction of more than 16% since has been to identify and spread best practice 2014. By 2017, we are aiming for a rate across our breweries. In 2015, this led to 9 130 of 4.6, which would represent a more than the successful establishment of an EHS 8 120 40% reduction in three years. function and network, and the appointment of EHS managers at all sites. A series of 7 110 In 2015, we were all deeply saddened by the EHS workshops helped raise awareness 6 100 accidental deaths of three employees and two of the key health & safety issues among contractors as a result of traffic accidents in employees, and these were complemented 5 90 Malawi, China and Russia. This was a stark re- in December 2015 by a special annual 2013 2014 2015 2013 2014 2015 minder of the progress we still need to make safety day. to achieve our ambition of zero accidents. * Within KPMG’s assurance scope. People & Policies Sustainability Report 2015 Lorem ipsum 39

Safety levels at our production sites LOOKING TO 2016 AND BEYOND were quickly raised by picking some of the There are many things we can do to move low-hanging fruit, for example implementing the Carlsberg Group forward in terms of machine guards and introducing fall protec- health & safety. However, real change will not tion and smoke detection. A special effort happen without embedding a health & safety was made in 2015 to encourage more culture from top management and consist- consistent use of personal protective equip- ently introducing good habits in our com- ment (PPE) by employees, while other areas, panies. Often, it is the simple changes that such as prevention of spills (ammonia, ultimately make the difference, such as using chemical fire-extinguishing powder etc.) and cut-protective gloves. We hope to speed up manual firefighting, also received special the pace of improvements in 2016 by sharing attention. best practices through our global networks.

These actions resulted in a reduction in the Next year, we will be focusing on continued lost-time accident rate (LTAR) in Production implementation of the zero-accident strategy of 70% and a reduction in the days lost rate by progressively improving our policies, sys- (DLR) as a result of accidents of 80% since tems and standards with a view to managing 2014 in China. From these figures, we can high-risk activities as well as through EHS clearly see that both the frequency and se- leadership training. Another significant aim verity of accidents have fallen significantly. for 2016 is to improve our health & safety performance in Logistics and achieve a 50% The fatality that occurred during the year in reduction in the LTAR by the end of the year China emphasises that we still have a long compared with 2013. way to go on our journey towards zero acci- dents. All accidents are preventable and we will do our utmost to avoid such unfortunate incidents in the future. However, the reduc- tion in the LTAR is encouraging and we will strive to keep up the pace of improvements in the years to come.

People & Policies Sustainability Report 2015 Business ethics 40

es more specifically on employee behaviour 2015 WHAT WE SAID 2015 WHAT WE DID Activating our priorities as a complement to our policy framework. The new code, to be launched in the second Continue implementation of COMS to reach COMS to be discontinued as of 2016 after failing quarter of 2016, will cover a wider range greater numbers of employees across the Group to live up to expectations; initiative started to Business ethics of topics, including anti-discrimination and create a single global learning platform for the expected behaviour. Among other things, Carlsberg Group it will reiterate our unambiguous position Roll out a risk assessment in COMS Risk assessment not rolled out as COMS to be discontinued on bribery and corruption, reinforcing the Group’s zero tolerance on matters such as Carry out third-party screening in all markets Work to train and advise markets on third- party screening procedure practices and facilitation payments, and it will apply to all implementation continued The Carlsberg Group’s business prac- employees worldwide. Carry out ongoing monitoring of local market Monitoring in various markets (plus guidance tices are rooted in high standards of fair compliance with third-party screening and follow-up) continued and ethical behaviour. As we grow and Training of our employees on the new code Roll out e-learning in more Group languages E-learning not rolled out in additional develop, we remain committed to these will start directly after the launch and will markets due to discontinuation of COMS standards and values, endeavouring to be repeated every three years either online Continue face-to-face training of senior managers All remaining high-risk markets visited express our commitment through sound, or face to face. In 2015, we tested a new and on-site monitoring in all high-risk markets transparent business practices. face-to-face training concept in two mar- kets, which received good feedback from the In 2015, we took a number of measures to participants. We expect this to be applied in sharpen our focus on business ethics. Firstly, more markets in 2016. 2016 COMMITMENTS 2017 TARGETS we created the specific role of Chief Com- pliance Officer early in the year. The new One serious risk we face as a company is be- Issue and roll out Code of Ethics & Conduct and Train all employees on Code of Ethics & Conduct appointee reports directly to the CEO, clearly ing drawn into corruption schemes of which Anti-Corruption Standard in all markets upon hire and subsequently every three years signalling the seriousness with which we we are unaware. With this in mind, through- Roll out e-learning training on Code of Ethics Train all employees in high-risk markets on approach this subject. out 2015 we also continued our work with & Conduct and Anti-Corruption Standard in all anti-corruption annually third-party screening by local businesses. markets Secondly, we initiated a revision of our These activities were monitored centrally by Carry out third-party screening in all markets Embed third-party screening in contracting process and train relevant business units in all compliance strategy, on which we will report the Compliance function and, so far, 84% of Carry out ongoing monitoring of local market markets more fully in 2016. Part of that revision led local companies have implemented a third- compliance with third-party screening to a discontinuation of the work with COMS, party screening procedure. However, we are Conduct face-to-face anti-corruption training of Conduct annual Compliance Risk Assessment across all markets our compliance management system, and conscious that more work needs to be done high-risk employees and on-site monitoring in all high-risk markets for this reason we did not meet our targets in this area. Our aim is to embed third-party in this area. We are now developing a more screening into the contracting process and to flexible tool in-house that will provide the have all the relevant business units trained foundation for a single, integrated global by the end of 2016 in all markets. learning platform for the Group. COMPETITION COMPLIANCE POLICY REVISION Competition laws form part of the foundation We are also revising our Business Ethics upon which a free and competitive market Policy, in connection with which we will intro- system is built. Compliance with such laws duce a Code of Ethics & Conduct that focus- is therefore a prerequisite for a competitive People & Policies Sustainability Report 2015 Lorem ipsum 41

environment in which market participants Since the establishment of the whistleblower are free to buy and sell products and ser- system in April 2010, some reports and vices based on their competitive merit. The their subsequent investigation have led Carlsberg Group requires that all its employ- to disciplinary sanctions for one or more ees conduct their business activities in line employees, including dismissal on the basis with applicable competition laws at all times. of violation of Group policies and, in some In recent years, to strengthen and supple- cases, relevant criminal laws. Most of these ment measures already in place, we have matters related to isolated incidents of increased our efforts to ensure compliance fraud carried out by individual employees in with competition laws across the Group. the Group. The incidents have not had any material impact on the financial results of the The Group’s Competition Law Compliance Group or the Group company in question. Program includes detailed guidance, a handbook and other related tools aimed at UPDATED 2017 TARGETS supporting our employees and to prevent In light of the new approach to business Carlsberg from participating in activities that ethics that we adopted in 2015, we have are contrary to competition laws. slightly updated our 2017 targets. This means, for example, that we will aim to train all SPEAK UP INITIATIVE employees in the Code of Ethics & Conduct, The Carlsberg Group has a whistleblower starting from 2016, and conduct mandatory system that enables employees to report follow-up training every three years instead activities that may involve criminal conduct of every two years. Furthermore, we will or violations of the Group’s policies and introduce a new annual procedure for guidelines. This is called the Speak Up assessing the compliance risk across all Initiative. markets, which must be implemented across the Group by 2017. Under the whistleblower system, concerns can be brought to the attention of the EMBEDDING ETHICS Chief Compliance Officer in multiple ways, In the coming year, business ethics will including via a website, a dedicated e-mail remain high on the agenda. The measures address, regular e-mail and verbally. Reports outlined above will help us in our ambition filed through the system are handled by to take the subject beyond compliance and the Chief Compliance Officer, who regularly, make ethical behaviour an even more natu- and at least every quarter, reports to the ral part of the culture of our company. Audit Committee on issues reported via the whistleblower system and action taken as a result. In 2015, 87 concerns that were either submitted to the system or otherwise brought to the attention of the Chief Compliance Officer were reviewed. People & Policies Sustainability Report 2015 Labour & human rights 42

the expectations we have of our leaders with 2015 WHAT WE SAID 2015 WHAT WE DID Activating our priorities regard to labour & human rights. Use the e-learning module to create further aware- E-learning module introduced and rolled out in The Carlsberg Group aims to provide op- ness and understanding of the LHR Policy 2 markets during 2015 Labour & portunities for employees to develop their Evaluate the e-learning pilot and introduce it in Evaluation performed and introduction planned human rights skills and feel engaged, and we are con- other countries for additional markets in 2016 scious of the need to create a more bal- Further roll out the leadership competence frame- Leadership competences rolled out and will anced employee base, especially in terms of work continue to be further embedded across the developing women for leadership positions. Carlsberg Group We have adopted a target to increase the Continue with and initiate further gender Progress on various internal diversity initiatives, diversity actions such as evaluation of our Female Leaders Pro- proportion of the underrepresented gen- gramme, maintaining the level of female partici- The Carlsberg Group is committed der on the Supervisory Board so that it will pation in our Learning Leaders Programme to providing a healthy, safe working reach at least 40% of the Supervisory Board Carry out targeted communication of the Established Group website links to the LHR environment for all employees and members elected by the General Meeting updated employer branding and career site Policy and emphasised our commitment to to ensuring equal opportunities in the no later than 2017. Currently, women are establishing open and inspirational workplaces for all employees workplace. We also expect those who underrepresented, both on the Supervisory work indirectly with the Group to Board and in senior management positions support us in these endeavours. in the Company. We also have a general aim of increasing the number of women in 2016 COMMITMENTS 2017 TARGETS Globally, the Group applies a single com- senior management positions. In our efforts mon Labour & Human Rights (LHR) Policy to increase gender diversity among our lead- and ensures compliance with its standards ers, we have chosen to apply a bottom-up Continue to anchor the leadership competences Anchor integrity in the organisation as one across the Carlsberg Group of the leadership competences both internally and by suppliers. In markets approach rather than adopting quotas. Include leadership competences in onboarding where local labour practices and conditions Increase gender diversity in top and middle programme for new hires at manager level fall short of our standards, we strive to In 2015, women comprised one third management across the Group Continue to roll out the LHR Policy e-learning correct this as quickly as possible. of the delegates in our Learning Leaders module in different markets Understand and demonstrate continuous due Programme, and we also established a diligence in accordance with the UN Guiding TRAINING AND AWARENESS multinational female mentoring programme Principles on Business and Human Rights In 2015, we introduced a pilot e-learning and a global virtual network to collect ideas Roll out LHR Policy e-learning module to module in two different markets to create an about how we can make the playing field HR and line managers across the Group as a pilot for other target groups even greater degree of awareness and un- more even. derstanding of the Group’s LHR Policy. As the pilot proved successful, we will roll out the FOCUS ON ASIA e-learning module to further Group markets In May 2015, we established a new joint during 2016. venture in Myanmar, where, in conjunc- tion with a Danish NGO, we had identified a In this connection, we also continued work- number of human rights-related risk areas ing with the Carlsberg Group’s leadership in our operations across the value chain, competences, which define the abilities, including health & safety in the workplace attitudes and knowledge needed to realise and human rights risks associated with our strategy as a global brewer, including waste collection. Recommendations on how People & Policies Sustainability Report 2015 Labour & human rights 43

to minimise this risk exposure are now being LOOKING TOWARDS 2016 COLLABORATION implemented locally to ensure that we live In 2016, we will continue to ensure that up to our Labour & Human Rights Policy and our Labour & Human Rights Policy is widely our stakeholders’ expectations of us. understood and implemented across the Selected memberships Group. Our priorities will be to further In Cambodia, through our active cooper­ embed leadership competences and make We are always on the lookout for partnerships and memberships that can help us achieve ation with other brewers in the Beer Selling progress on gender diversity in the Group’s our financial and sustainability targets. Furthermore, we aim to be at the forefront of Industry of Cambodia (BSIC), we continued senior and middle management. developments towards a more sustainable supply chain, improved employee health our work to improve the health and working & safety, and equality in the workplace. With this in mind, we join forces with other conditions of female beer promoters by companies and stakeholders with similar interests in order to share our ideas, learn from setting industry standards. See more facts and theirs, and work together to make improvements. figures about labour & BUSINESS FOR SOCIAL RESPONSIBILITY (BSR) human rights on pages BSR is a global non-profit organisation with a network of more than 250 member 49-50. companies. From its offices in Asia, Europe and North America, BSR works towards the development of sustainable business strategies and solutions through consulting, research and cross-sector collaboration. Through its BSR membership, the Carlsberg Group has engaged in work on future consumer attitudes towards brands and sustainable lifestyles.

UNITED NATIONS GLOBAL COMPACT (UNGC) This is the world’s largest corporate sustainability initiative. It calls for companies to align their strategies and operations with the universal principles on human rights, labour, environment and anti-corruption, and to take actions that advance societal goals. The Carlsberg Group has been a signatory of UNGC since 2008, making it part of a worldwide group that collectively represents more than 58 million employees.

SUPPLIERS ETHICAL DATA EXCHANGE (SEDEX) AND AIM-PROGRESS To support the implementation of the Code of Ethics & Conduct, we are members of AIM-PROGRESS, an industry-wide forum for global fast moving consumer goods companies and their suppliers to enable and promote responsible sourcing practices and promote industry cooperation. We are also a member of Sedex, a collaborative platform for sharing ethical supply chain data, which enables us to share information with our suppliers regarding their CSR performance.

WE SUPPORT People & Policies Sustainability Report 2015 Community engagement 44

nities. In this way, we support their long- CASE STORY Activating our priorities term health and sustainability both directly and indirectly. Our community engagement activities are generally carried out at local Volunteering in Russia Community market level, touching on areas such as the engagement environment, sport, responsible drinking and disaster relief. Companies are established to provide goods or services to their customers, but In 2015, our commitments centred around they also become an integral part of the employee engagement on sustainable pack- communities in which they operate. aging, youth prevention programmes and employee volunteering. They were ambitious Carlsberg’s products are enjoyed by millions commitments, and although we managed to of consumers all over the world. We have do a lot, we did not achieve quite as much breweries in more than 40 markets and as we had hoped. operate in 140 markets overall. Over many decades in business, the Group has been EMPLOYEE ENGAGEMENT committed to making a positive impact on In 2015, we carried out several employee en- society. For us, this means more than just gagement activities related to recycling and acting responsibly towards the communi- sustainable packaging. Nine companies were ties in which we are based; it also means involved, corresponding to 20% of our total proactively engaging with them and working companies. Examples of these activities were together for mutual benefit. recycling initiatives in Russia and Poland. We are still a long way from our goal of having OUR HERITAGE campaigns in 50% of our companies. For We have a long-standing tradition of com- this reason, we have decided to review our In 2015, Baltika Breweries in Russia carried out two employee engagement activities at munity engagement with strong roots in our approach in 2016. We also failed to achieve music festivals to promote recycling and raise environmental awareness. heritage. Carlsberg’s founder, J.C. Jacobsen, our target of 40,000 employee volunteer- and his son Carl were pioneers in sharing ing hours. However, we are still proud of the The first was the “Tuborg GreenFest. Go green” campaign at the GreenFest in St Petersburg knowledge and supporting society. Today, total of around 25,000 volunteering hours. in June, where 20 volunteers encouraged the festival attendees to take their empty their legacy lives on through the Carlsberg Examples of the many and diverse initia- aluminium cans and paper cups to an ecozone. For every three items handed in, they Foundation, which is still our largest share- tives for which our employees volunteered received a free “Tuborg GreenFest. Go green” bracelet. In all, around 1,000 bracelets were holder. The Foundation funds basic research included cycling events for charity, provid- handed out. that, among other things, helps develop so- ing assistance for homeless shelters, charity lutions to global challenges within the natu- events to support refugees, planting trees, In August, a second group of 20 volunteers took part in “Ecopatrol at Prostor” at the ral sciences, social sciences and humanities. charity dinners and many more. Prostor Festival in Vladivostok. Some of the volunteers handed out recycling bags and gloves to visitors so they could collect empty PET bottles, which could later be exchanged CONTRIBUTING TO LOCAL COMMUNITIES The plan for 2016 is to review our approach for prizes. Others walked around promoting the activity to the festival attendees. Providing employment to around 47,000 to community engagement and align it with people is perhaps the most obvious way our stakeholders’ expectations as well as our that the Group contributes to local commu- new corporate strategy, SAIL’22. People & Policies Sustainability Report 2015 Community engagement 45

2015 WHAT WE SAID 2015 WHAT WE DID CASE STORY

Employee engagement – sustainable packaging More card board from Execute different forms of sustainable packaging/ Campaigns conducted in 9 companies, recycling programme with employee involvement corresponding to 20% of the companies certified sources in at least 50% of Group companies in the Group

In Europe, we took a big step in 2015 with the sourcing of solid Responsible drinking board from certified sources. In total, more than 60% of all solid and Implement youth drinking prevention programmes 7,500,000 people reached through 44 activities corrugated board purchased for Europe was either PEFC (Programme in Group companies and reach 500,000 people (see more on page 29) for the Endorsement of Forest Certification) or FSC (Forest Stewardship below the legal drinking age Council) certified. We achieved this through cooperation with our suppliers, such as WestRock, a leading global packaging company and Employee volunteering one of the partners in the Carlsberg Circular Community. Group company employees to spend at least 25,796 volunteering hours spent by our employees 40,000 hours on voluntary activities The certification of these products provides assurance that the solid board we use as secondary packaging comes from responsibly managed forests. The chain of custody process, which is a requirement for certification, also excludes so-called controversial wood from paper and 2016 COMMITMENTS 2017 TARGETS other wood-based materials. Controversial wood is defined by a number of criteria, such as illegally harvested wood, wood from forests being Revise our community engagement strategy and Employee volunteering converted to non-forest, and even wood from genetically modified trees. align it with the outcomes of SAIL’22 Employees of the Group’s companies to carry out an aggregate total of 100,000 hours of voluntary activities Moving ahead, we plan to continue our work in this area, building on the success of our material sourcing programme in Europe and extending it Responsible drinking to other regions. Reach at least 1.5 million people below the legal drinking age through local education and sales restriction campaigns addressing underage drinking

Employee engagement – sustainable packaging Implement sustainable packaging/recycling projects in at least 75% of all Group companies with employee involvement People & Policies Sustainability Report 2015 Responsible sourcing 46

Activating our priorities To follow up on compliance with the Supplier­ 2015 WHAT WE SAID 2015 WHAT WE DID and Licensee Code of Conduct, we include a number of compliance questions in our Responsible Follow up on and close non-compliances arising No follow-up due to organisational changes sourcing integrated quality audits of Carlsberg Group from 2014 audits suppliers. These audits partly focus on as- Continue our membership of AIM-PROGRESS Continued membership of AIM-PROGRESS Our supply chain provides all the sessing whether suppliers have policies,­ and Sedex ingredients and packaging for our management systems, certifications and products. We are committed to en- targets for environment and safety, and suring that our suppliers uphold high whether they are living up to our stand- standards of quality and CSR to main- ards. In 2015, we performed a total of 171 2016 COMMITMENTS tain the integrity of our products. audits: 55 in Western Europe, 25 in Eastern Europe and 91 in Asia. This represents an Review responsible sourcing strategy We are continuing to implement our Sup- increase of 69% on the 101 audits of 2014, plier and Licensee Code of Conduct and are primarily driven by increased audit activity Continue integrated quality audits to monitor CSR performance at selected suppliers members of the Supplier Ethical Data Ex- in Asia. change (Sedex) and of the AIM-PROGRESS forum, assembled to enable and promote Due to organisational changes, we did not responsible sourcing practices and sustain- follow up on the non-compliances identified able supply chains. Furthermore, we are in 2014 as part of our social audits. In 2016, working with suppliers to improve the en- we will continue auditing suppliers through vironmental credentials of our supply chain our integrated quality audits and review our through, for example, the Carlsberg Circular work on responsible sourcing in the light of Community (read more on page 20) and the Group’s new corporate strategy. the purchasing of solid board from certified sources (see box on page 45).

SELECTED KPIs 171 integrated quality and CSR audits conducted in 2015 Sustainability Report 2015 Section 1: Data summary table 47

Section 1 Data summary table

ENVIRONMENTAL DATA

Relative figures for beer and General production figures 2011 2012 2013 2014 2015 soft drinks production 2011 2012 2013 2014 2015

Number of reporting sites 75 76 75 101 110 Thermal energy (kWh/hl)* 21.1 21.0 20.0 21.4 21.2 Beer production (million hl) 99.1 100.7 100.3 107.0 105.4 Electricity (kWh/hl)* 8.1 8.1 8.0 8.0 7.8 Soft drinks production (million hl) 11.7 12.2 13.0 13.6 13.9 Combined energy (thermal and electricity) (kWh/hl)* 29.2 29.1 28.0 29.4 29.0

Beer and soft drinks production (million hl)* 110.8 112.9 113.3 120.6 119.3 CO2 emissions (kg CO2/hl)* 8.0 6.7 6.6 7.3 7.0 Malting (kt) 410.1 467 459.9 492.0 547.2 Water (hl/hl)* 3.3 3.3 3.3 3.4 3.4

Environmental performance data (beer, soft drinks and malt production) Relative figures for malt production

Total thermal energy (GWh)* 2,735 2,808 2,671 2,970 2,943 Thermal energy (kWh/tonne) 760.1 712.1 703.9 694.1 692.2 Total electricity (GWh)* 949 966 954 1012 988 Electricity (kWh/tonne) 103 97.2 94.4 87.1 84.1

Total CO2 emissions (kt)* 996 882 849 982 945 Combined energy (thermal and electricity) (kWh/tonne) 863.1 809.3 798.3 781.1 776.3 Total SO2 emissions (tonnes) 1,376 1,440 1,249 1,651 1,695

CO2 emissions (tonnes CO2/tonne) 0.24 0.22 0.20 0.19 0.18 Total NOx emissions (tonnes) 1,568 1,483 1,387 1,586 1,562 Total water consumption (million m³)* 38 38.7 38.7 42.1 41.2 Water (m³/tonne) 2.5 2.1 2.0 2.3 2.2 Total wastewater discharged (million m³) 24.9 25.2 24.4 27.2 26.6 Other figures Total organic load (COD) before treatment (kt) 79.8 73.6 74.8 75.5 78.8 Complaints 47 42 38 93 33 Solid waste & by-products Number of ISO 14001-certified sites 60 60 60 69 74 Incinerated (kt) 6.6 7.1 7.3 9.3 8.7 Number of ISO 50001-certified sites N/A N/A 1 1 3 To sanitary landfill (kt) 43.5 45.1 73.4 64.6 68.6 Water source split Special waste (kt) 0.79 0.32 0.4 0.7 0.7 Recycled (kt) 135.2 147.5 141.3 164.8 189.2 Municipal water 49% 51% 50% 49% 48% Disposed of for land applications (kt) 209 244.5 174.1 173.7 165.9 Own boreholes 45% 43% 43% 43% 42% Other (kt) 0.8 8.3 6.2 21.0 0 Surface water 6% 6% 7% 8% 10% Total solid waste (kt) 396 452.8 403 434.1 433.1 Brewer’s grains and brewer’s yeast (kt) 1,341 1,317 1,379 1,409.0 1,348.9

* Within KPMG’s assurance scope (see KPMG’s Assurance Report, p. 51). Sustainability Report 2015 Section 1: Data summary table 48

ENVIRONMENTAL DATA – CONTINUED HEALTH & SAFETY

Wastewater destination 2011 2012 2013 2014 2015 Figures for Production 2011 2012 2013 2014 2015

Public sewer with wastewater treatment 71% 68% 68% 66% 67% Number of lost-time accidents* 195 171 145 156 114 Public sewer without wastewater treatment 5% 3% 4% 3% 3% Lost-time accident rate* 13.6 11.4 10.3 9.1 6.2 On-site treatment, followed by discharge to Number of lost days* 2,559 2,306 2,010 2,207 1,911 river/lake 24% 28% 27% 30% 28% Days lost rate* 178 153 142 129 105 Other 0% 1% 1% 1% 2% Figures for Logistics Thermal energy mix Number of lost-time accidents* 180 148 136 150 140 Natural gas 71.1% 69.7% 71.8% 68.0% 66.1% Lost-time accident rate* 21.6 19.0 16.7 17.4 15.5 Coal 12.7% 12.3% 11.0% 14.9% 15.6% Number of lost days* 2,991 2,457 2,087 2,201 2,511 District heating 8.4% 7.9% 7.2% 6.8% 6.4% Days lost rate* 359 316 256 255 277 Heavy fuel 2.6% 4.7% 4.4% 3.4% 2.8% Renewable energy 3.1% 3.5% 3.7% 5.2% 6.9% Figures for the Group Light fuel 1.5% 1.2% 1.2% 1.1% 1.2% Number of lost-time accidents 457 367 326 352 312 Other 0.6% 0.6% 0.7% 0.6% 1.0% Lost-time accident rate 12.3 9.9 8.7 7.9 6.6 Number of lost days 6,831 5,489 4,830 5,118 5,030 CO2 emissions from refrigerants Days lost rate 184 147 129 115 106 HFC-based refrigerants (kt CO2)* N/A N/A 11.3 12.9 14.9 Fatalities 2 0 4 0 3

Sustainable packaging Lost time accidents – department split

Percentage of companies carrying out consumer- Percentage in Production 43 47 44 44 37 facing sustainable packaging campaigns 1 N/A N/A 26 28 24 Percentage in Logistics 39 40 42 43 45 Number of consumer-facing sustainable Percentage in Sales & Marketing and Administration 18 13 14 13 19 packaging campaigns* N/A N/A N/A 45 22

Packaging mix

Cans 23.8% 24.8% 26.7% 26.1% 26.6% RGB 28.9% 29.2% 29.1% 33.7% 33.7% NRGB 8.6% 8.2% 8.1% 8.2% 9.2% R-PET 1.6% 2.2% 1.5% 1.0% 0.0% PET 27.4% 26.3% 25.7% 22.5% 23.0% Kegs 7.4% 7.4% 7.1% 6.6% 6.4% Bulk 1.8% 1.4% 1.2% 1.3% 1.0% Other 0.5% 0.5% 0.6% 0.4% 0.1%

* Within KPMG’s assurance scope (see KPMG’s Assurance Report, p. 51). ** Restated. 1 10 out of 41 companies. Sustainability Report 2015 Section 1: Data summary table 49

COMMUNITY ENGAGEMENT RESPONSIBLE DRINKING

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Total cash and in-kind donations (DKKm) 52 38 47 35 38 Percentage of companies implementing 4 Number of cause-related marketing partnerships 16 16 34 31 18 responsible drinking initiatives 80 78 69 62 78 Percentage of companies investing in community Percentage of fermented produced volume engagement initiatives 86 85 85 82 80 carrying responsible drinking guiding symbols and/or equivalent text* N/A N/A 73 67 545 Number of community engagement activities 1,504 1,731 1,599 987 816 Responsible drinking campaigns N/A N/A N/A 115 239 Distribution of activities Percentage of companies in markets with self-regulatory bodies N/A N/A N/A N/A 736 Environment 22% 23% 22% 17% 21% Sports 13% 15% 14% 16% 12% Responsible drinking 10% 11% 12% 12% 14% BUSINESS ETHICS Education and culture 22% 25% 28% 21% 22% Support of vulnerable groups 10% 11% 11% 12% 12% 2011 2012 2013 2014 2015 Health and care 7% 8% 6% 8% 6% Natural disaster relief 4% 3% 3% 5% 4% Number of face-to-face training sessions held on the Business Ethics Policy 184 184 184 114** 139 Other 12% 4% 4% 9% 9% Total number of employees trained in the Number of employees involved in community Business Ethics Policy 6,653 3,795 5,798 5,674 6,835 engagement activities 3,527 4,146 7,432 9,232 6,395 Percentage of companies with mechanisms in Number of hours spent 18,217** 20,612** 22,220** 15,902** 25,796 place to avoid business ethics incidents 84 83 88 86 98 Percentage of companies with voluntary employee Number of markets that held business ethics involvement in sustainable packaging/recycling initiatives N/A N/A N/A 20% 20% training sessions 24 24 29 33 34 Number of underage reached through local education Percentage of companies that have implemented and sales restrictions campaigns addressing underage third-party screening procedures N/A 35 60 68 84 drinking N/A N/A N/A 176,000 7,579,008

MARKETING COMMUNICATION LABOUR & HUMAN RIGHTS

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Percentage of companies with a procedure in Total workforce (FTE***) 42,670 41,708 38,705** 46,832** 47,464 place to track consumer complaints 94 97 97 98 952 Number of reported incidents of non-compliance Percentage of employees by employment with Marketing Communication Policy 7 5 4 6 4 contract Number of sales, marketing and innovation Permanent employees 93 93 90 82 88 employees trained through the marketing Temporary employees 7 7 10 18 12 communication e-learning tool 235 251 251 490 N/A Percentage of companies which have a * Within KPMG’s assurance scope (see KPMG’s Assurance Report, p. 51). “moderation” line on all branded communication, ** Restated. in all digital marketing and TVCs and in all print *** FTE data from Carlsberg Group Annual Report 2015. 3 communication above A4 N/A N/A N/A 56 65 2 42 out of 44 companies. 3 26 out of 40 companies. 4 31 out of 40 companies. 5 New definition introduced in 2015. 6 30 out of 41 companies. Sustainability Report 2015 Section 1: Data summary table 50

LABOUR & HUMAN RIGHTS – CONTINUED

Percentage of employees by employment type 2011 2012 2013 2014 2015 Employee turnover percentage by gender 2011 2012 2013 2014 2015

Full-time 94 93 92 94 98 Male 75 71 70 72 71 Part-time 6 7 8 6 2 Female 25 29 30 28 29

Percentage of employees by employment Hours of training per employee category Average for the Group 17 13 33 15 15 Total presidents + top managers 2 2 2 2.1 1.5 Total managers 11 11 11 11.5 12.3 Collective bargaining Total specialists 39 39 40 40.9 39.9 Percentage of employees covered by collective Total workers 48 48 47 45.5 46.3 bargaining agreements 68 71 71 71 73

Percentage of employees by gender Policy implementation status

Male 74 73 74 72 72 Percentage of labour & human rights procedures and Female 26 27 26 28 28 processes implemented as average for the Group 89 93 95 94 92

Percentage of management level by gender

Male 76 77 76 76 78 Female 24 23 24 24 22 RESPONSIBLE SOURCING

Percentage of employees by age 2011 2012 2013 2014 2015

Younger than 18 0.03 0.03 0.03 0.02 0.19 Number of integrated quality audits 76 121 142 101 171 19-29 23 23 23 23 22 30-39 35 35 34 34 33 40-49 26 26 26 27 29 50 or older 16 16 17 16 16

Employee turnover

Employee turnover percentage 16.5 14 15 15 19

Employee turnover percentage by age

Younger than 18 0 0 0 0 0 19-29 43 41 37 36 32 30-39 32 32 31 31 33 40-49 14 15 19 18 20 50 or older 11 12 13 15 15 Sustainability Report 2015 Section 2: Independent assurance report 51

Section 2 Independent assurance report

To the readers of the 2015 Carlsberg • In the section ‘Health & safety’: data on of Historical Financial Information, issued • An analytical review of the data for the Group Sustainability Report ‘lost-time accident rate’ in Production and by the International Auditing and Assurance selected indicators within the assurance We were engaged by the Executive Board of Logistics respectively, and ‘days lost rate’ Standards Board. This Standard requires, scope submitted by all production sites for Carlsberg A/S (further ‘Carlsberg’) to provide in Production and Logistics respectively amongst other things, that the assurance consolidation at corporate level. assurance on selected environmental, health & (pp 37-39 and 48). team possesses the specific knowledge, skills • Evaluating relevant internal and external safety and social information in the Carlsberg and professional competences needed to pro- documentation, based on sampling, to de- Group Sustainability Report 2015 (further ‘The We do not provide any assurance on the vide assurance on sustainability information, termine whether the selected information Report’). The Executive Board is responsible achievability of Carlsberg’s objectives, and that it complies with the requirements of is supported by sufficient evidence. for the preparation of The Report, includ- targets and expectations. the Code of Ethics for Professional Accounts ing the identification of material issues. Our of the International Federation of Accountants Conclusion responsibility is to issue an assurance report Procedures performed to obtain a limited to ensure their independence. Based on the procedures performed, as based on the engagement outlined below. level of assurance are aimed at determining described above, nothing came to our atten- the plausibility of information and are less Work undertaken tion to indicate that the selected information Scope and limitations extensive than those for a reasonable level Our procedures included the following: is not presented, in all material respects, in Our engagement was designed to obtain lim- of assurance. • A risk analysis, including a media search, accordance with the reporting criteria. ited assurance on whether the following infor- to identify relevant issues within the as- mation is presented, in all material respects, Reporting criteria and surance scope for Carlsberg during the Amsterdam, Copenhagen, in accordance with the reporting criteria: assurance standard reporting period. 24 February 2016 24 February 2016 • In the section ‘Building a circular mind- The reporting criteria are specified in section • Reviewing the suitability of the reporting KPMG Sustainability, part KPMG Statsautoriseret set’: data on ‘number of consumer-facing 4, Reporting process and scope, section 5, criteria. of KPMG Advisory N.V. Revisionspartnerselskab campaigns on sustainable packaging’ Definitions, and section 6, List of reporting • Evaluating the design and implementation (pp 13-15 and 48). sites. It is important to view the assured of the systems, and processing and control Wim Bartels Henrik O. Larsen • In the section ‘Increasing brewing ef- information in the context of these criteria. of the selected information. Partner State Authorised Public ficiency’: data on ‘energy consumption’, We believe that these criteria are suitable • Interviews with the relevant staff at corpo- Accountant

‘CO2 emissions’, ‘water consumption’, in view of the purpose of our assurance rate level responsible for collecting, con- ‘HFCs’ and related explanations (pp 17-21 engagement. solidating and carrying out internal control and 47-48). procedures on the selected information. • In the section ‘Promoting moderate We conducted our engagement in accordance • Visits to three production sites in Sweden, consumption’: data on ‘percentage of with the International Standard for Assur- Kazakhstan and China to review data and fermented produced volume carrying ance Engagements (ISAE) 3000: Assurance the design and implementation of valida- responsible drinking guiding symbols and/ Engagements other than Audits or Reviews tion procedures at local level. or equivalent text’ (pp 26-28 and 49). Sustainability Report 2015 Section 3: Global Reporting Initiative table 52

Section 3 Global Reporting Initiative table

The following table contains Standard cate whether our level of disclosure covers Contribution to Society Report 2015 (ECS) The GRI G4 Guidelines encourage disag- Disclosures from the GRI G4 Sustainability the GRI requirements fully or partially. We or the Sustainability Report 2015 (SR). gregation of information where feasible, Reporting Guidelines without meeting the have applied the GRI since 2009. but acknowledge that the level of disag- “in accordance” criteria. The framework In total, we report on 70 indicators. gregation may vary by indicator. In this provides organisations with principles In addition, every profile or perform­ In order to simplify the table, we have report we have provided data primarily on and indicators to measure and report ance indicator we apply is linked to a included only the indicators for which we Group level, with some regional and local their economic, environmental and social specific section of either our Annual provide either full or partial data. data being shared. performance.­ To increase the transparency Report 2015 (AR), our company website and comprehensibility of the table, we indi- (www.carlsberggroup.com), our Economic

GENERAL STANDARD DISCLOSURES: GRI PROFILE

Profile Description Location and comments Level of reporting UNGC principle

Strategy and Analysis

G4-1 Statement from the CEO and Board of Directors SR 5-6

Organizational Profile

G4-3 Name of the organization SR 1

G4-4 Primary brands, products and services www.carlsberggroup.com/brands

G4-5 Location of headquarters Copenhagen

G4-6 Countries in which operations are located www.carlsberggroup.com/markets

G4-7 Nature of ownership and legal form AR 55-57

G4-8 Markets served www.carlsberggroup.com/markets, AR 9, 21-29

G4-9 Scale of the organization AR 5-11 SR 3

G4-10 Workforce breakdown (contract, type, gender) SR 49-50 Sustainability Report 2015 Section 3: Global Reporting Initiative table 53

GENERAL STANDARD DISCLOSURES: GRI PROFILE

Profile Description Location and comments Level of reporting UNGC principle

G4-11 Coverage of collective bargaining agreements SR 50

G4-12 Description of supply chain SR 9 AR 15-16 www.carlsberggroup.com/Company/ organisation/Corporate_functions/ Organisation_CSC/Pages/default.aspx

G4-13 Significant changes during the reporting period SR 58-59

G4-14 Addressing the precautionary approach or principle SR 7-8 AR 35-39

G4-15 External charters, principles, or other initiatives endorsed SR 20, 30, 43

G4-16 Memberships of associations SR 20, 30, 43 Local brewers associations

Indentified Material Aspects and Boundaries

G4-17 Report coverage of the entities in the consolidated financial statements AR 140-141

G4-18 Process for defining the report content and the aspect boundaries SR 5-9

G4-19 Material aspects identified SR 5-9

G4-20 Aspect boundary within the organization SR 5-9

G4-21 Aspect boundary outside the organization SR 5-9

G4-22 The effect of restatements of information provided in previous reports SR 49

G4-23 Significant changes in the scope and aspect boundaries from previous reports SR 58-59

Stateholder Engagement

G4-24 List of stakeholder groups engaged SR 20, 30, 43

G4-25 Identification and selection of stakeholders SR 5-9

G4-26 Approaches to stakeholder engagement SR 5-9, 21

G4-27 Response to key topics and concerns raised SR 21 Sustainability Report 2015 Section 3: Global Reporting Initiative table 54

GENERAL STANDARD DISCLOSURES: GRI PROFILE

Profile Description Location and comments Level of reporting UNGC principle

Report Profile

G4-28 Reporting period The report covers the 2015 calendar year

G4-29 Date of most recent previous report CSR Report 2014 published on 2 March 2015

G4-30 Reporting cycle Annual

G4-31 Contact point for questions [email protected]

G4-32 “In Accordance” option, the GRI content index and external assurance Use GRI 4 guidelines without meeting the “In Accordance” criteria

G4-33 Policy and current practice regarding external assurance SR 8, 51, 52

Governance

G4-34 Governance structure AR 40-54

G4-38 Composition of the highest governance body and committees AR 40-54

G4-39 Is the chair of the highest governance body also an executive officer No

G4-40 Nomination and selection process AR 40-54

G4-48 Highest committee or position that reviews the sustainability report Supervisory Board

G4-51 Remuneration policies for the highest governance body AR 50-53

Ethics and Integrity

G4-56 Values, principles, standards, code of conduct and code of ethics SR 35-46 www.carlsberggroup.com/sustainability/policies

G4-58 Internal and external mechanisms for seeking advice on ethical and lawful behavior SR 40-41 AR 47 Sustainability Report 2015 Section 3: Global Reporting Initiative table 55

GENERALSPECIFIC STANDARD STANDARD DISCLOSURES: DISCLOSURES: MANAGEMENT GRI PROFILE APPROACH AND PERFORMANCE INDICATORS

Profile Description Location and comments Level of reporting UNGC principle

Generic Disclosures on Management Approach

G4-DMA Disclosures on Management Approach SR 7-8

Economic

Economic Performance

G4-EC1 Direct economic value generated and distributed ECS 7

G4-EC2 Financial implications and other risks and opportunities for the organization's SR 7-9, 11-22 7 activities due to climate change

Indirect Economic Impacts

G4-EC7 Development and impact of infrastructure investment and services supported SR 44, 45, 49 ECS 5-11

Environmental

Energy

G4-EN3 Energy consumption within the organization SR 17-21, 47-48 8

G4-EN6 Reduction of energy consumption SR 17-21 8-9

G4-EN7 Reductions in energy requirements of products and services SR 17-21 8-9

Water

G4-EN8 Total water withdrawal by source SR 19-21, 47-48 8

Emissions

G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) SR 17-21, 47-48 8

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) SR 12, 17-21, 47-48 8

G4-EN19 Reduction of greenhouse gas (GHG) emissions SR 12, 17-21, 47-48 7-9

G4-EN21 NOX, SOX, and other significant air emissions SR 47-48 8

Effluents and Waste

G4-EN22 Total water discharge by quality and destination SR 47-48 8

G4-EN23 Total weight of waste by type and disposal method SR 47-48 8

Products and Services

G4-EN27 Extent of impact mitigation of environmental impacts of products and services SR 12, 17-21, 47-48 7-9

G4-EN28 Percentage of products sold and their packaging materials that are reclaimed SR 12, 47-48 8-9 by category Sustainability Report 2015 Section 3: Global Reporting Initiative table 56

GENERALSPECIFIC STANDARD STANDARD DISCLOSURES: DISCLOSURES: MANAGEMENT GRI PROFILE APPROACH AND PERFORMANCE INDICATORS

Profile Description Location and comments Level of reporting UNGC principle

Compliance

G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for SR 47 8 non-compliance with environmental laws

Supplier Environmental Assessment

G4-EN32 Percentages of new suppliers that were screened using environmental criteria SR 46 8

Labour Practice and Decent Work

Employment

G4-LA1 Total number and rates of new employee hires and employee turnover by age group, SR 49-50 6 gender and region

Occupational Health and Safety

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, SR 37-39, 48 1 and total number of work-related fatalities by region and gender

Training and Education

G4-LA9 Average hours of training per year per employee by gender, and by employee category SR 50 1

Diversity and Equal Opportunity

G4-LA12 Composition of governance bodies and breakdown of employees per employee SR 42, 50 6 category according to gender, age group, minority group membership and other AR 40-47 indicators of diversity

Supplier Assessment for Labor Practices

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria SR 46 1-6

Human Rights

Investment

G4-HR1 Total number and percentage of significant investment agreements and contracts SR 46 1-2 that include human rights clauses or that underwent human rights screening

Assessment

G4-HR9 Total number and percentage of operations that have been subject to human rights SR 42, 43, 50 1-6 reviews or impact assessments Sustainability Report 2015 Section 3: Global Reporting Initiative table 57

GENERALSPECIFIC STANDARD STANDARD DISCLOSURES: DISCLOSURES: MANAGEMENT GRI PROFILE APPROACH AND PERFORMANCE INDICATORS

Profile Description Location and comments Level of reporting UNGC principle

Society

Local Communities

G4-SO1 Percentage of operations with implemented local community engagement, impact SR 44, 45, 49 assessments, and development programs

Anti-Corruption

G4-SO4 Communication and training on anti-corruption policies and procedures SR 40-41, 49 10

Product Responsibility

Customer Health and Safety

G4-PR1 Percentage of signifiant product and service categories for which health and safety SR 37-39, 48 impacts are assessed for improvement

Product and Service Labeling

G4-PR3 Type of product and service information required by the organization’s procedures SR 26-33 for product and service information and labeling, and percentage of signifcant product and service categories subject to such information requirements

Marketing Communications

G4-PR7 Total number of incidents of non-compliance with regulations and voluntary SR 32-33 codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes Sustainability Report 2015 Section 4: Reporting process and scope 58

Section 4 Reporting process and scope 1

Reporting approach and criteria Group directly or indirectly owns, in which it China: Chongqing Beer Group Assets Clarity Scope of the sustainability reporting controls more than 50% of the voting rights Management Co. Ltd: 8 breweries and We strive to make our sustainability This report contains Standard Disclosures or that it otherwise controls. 1 malting site reporting accessible and easy to read, but from the GRI Sustainability Reporting Guide- Vietnam: Carlsberg Vietnam Breweries – are always open to feedback about the way lines without meeting the “in accordance” Joint ventures and companies over which Vung Tau we communicate on our material issues. criteria. In this document, we cover the the Carlsberg Group does not have the op- India: Carlsberg India, Bihar Brewery relevant and significant social, ethical and portunity to exercise management control Myanmar: Carlsberg Myanmar, Bago Brewery Accuracy and reliability environmental issues for the financial year are not covered. However, we work with our Since 2009, our dedicated sustainability re- 1 January to 31 December 2015. Our GRI partners as a matter of course to ensure an Ensuring data quality porting system has helped us collect data from table includes references to our Annual ongoing focus on sustainability issues. If a In gathering information about our local sites and consolidate this at Group level. Report and the Economic Contribution to majority-owned entity is acquired during the sustainability performance, we have applied Every year since 2009, we have improved the Society report, which cover our financial financial year, that entity will be included in the widely used principles of balance, definitions of and accounting principles for our and economic performance. This informa- the following year’s report. clarity, accuracy, reliability, timeliness performance indicators in order to help our tion gives our stakeholders an overview of and comparability. Please find additional entities report accurately and reliably. our social, environmental and economic Comments on boundary setting information on each of the topics below: performance. • The following company changed its name: However, it is a challenge to obtain a Vietnam: Hue Brewery Ltd. and SEAB Balance complete and fully aligned overview of all We receive recommendations on our merged into one entity now called We are committed to communicating hon- our data that – at the same time – takes into sustainability activities and reporting from Carlsberg Vietnam estly and openly about our performance, account local procedures for data gathering. our assurance provider, KPMG, and we • The following sites have been closed/ both when it has improved and when it has For this reason we are continuously working also continuously analyse competitors’ sold since 2014 and have therefore been not. Our aim is to provide our stakehold- on improving data accuracy. We are using and industry initiatives in order to keep excluded from the 2015 reporting: ers with sufficient information about our an international provider of sustainability ourselves up to date. Vietnam: Hue Brewery company for them to be able to make their software solutions to systematise and collect Russia: Pikra Brewery Krasnoyarsk and own judgements concerning the Carlsberg our data. We have used the system since Boundary setting Baltika Chelyabinsk Group’s position and role in the societies in 2009, and it gives us a higher degree of Entities included in the performance data • The following companies have been added which we do business. control over the data-gathering process, include majority-owned subsidiaries, which since 2014 and are therefore included in helps local companies compare data year on are defined as companies that the Carlsberg the 2015 reporting: year, and enables instant consistency checks during the data-gathering phase. Besides the system, we use additional internal data 1 The scope and boundary described in this section mainly relate to sustainability data gathered primarily through our reporting and management system. Carlsberg Group CSR Report 2014 Section 5: Reporting process and scope 59

management systems to collect information to sites where the Carlsberg Group pro- such as employee headcounts. duces beer, soft drinks or malt, as well as combinations of these, and the water and KPMG has been appointed to provide energy consumption at these sites. The term independent assurance regarding selected “production site” does not include off-site economic, environmental and safety consumption such as logistics and off-site indicators. In each section of the report, administration. Definitions for environmental we indicate which data have been assured. indicators and health & safety are available For further details, see p. 51. in section 5, p. 60.

Timeliness Targets Internally, we report our sustainability We communicate two different kinds of data with varying degrees of frequency, plans and targets: depending on the nature of the data. Where necessary, we revise the reporting • One-year short-term commitments frequency in order to strike the right • Three-year targets and objectives balance between obtaining the correct data and observing appropriate time intervals for These have been developed by each of reporting on it. Annual data gathering and the functional owners of the sustainability external reporting are aligned with financial themes and may be adjusted following data collection, following the calendar year. significant changes in the business, such as major acquisitions and divestments, but Comparability only if these changes are made before the In the GRI table (section 3, pp 52-57), we target date. As far as possible, we include have listed whether our reporting is fully such changes by applying scenario planning or partially in line with the GRI indicator to our target-setting process. definitions.

We include three- or five-year data, as recommended by GRI, in all cases where a comparable three- or five-year data history is available.

Definitions During the reporting process, we identified some differences in the interpretation of certain indicators at site level. However, we do not feel that these differences signifi- cantly impact the validity of the reported data. Within the environmental data, any reference to “production site” or “site” refers Sustainability Report 2015 Section 5: Definitions 60

Section 5 Definitions

DEFINITIONS

Indicator name Indicator definition Unit

Total thermal energy consumption Total thermal energy consumption for beer, soft drinks and malt production GWh Total electricity consumption Total electricity consumption for beer, soft drinks and malt production GWh Total water consumption Total water consumption for beer, soft drinks and malt production m3 Total production of beer and soft drinks Total fermented and non-fermented products produced hl

1 Total CO2 emissions Total fossil carbon dioxide emissions (direct and indirect ­emissions) emitted from the energy used for beer, soft drinks and malt production kt CO2 Specific thermal energy consumption Thermal energy needed to produce one hectolitre of beer and soft drinks kWh/hl Specific electricity consumption Electricity needed to produce one hectolitre of beer and soft drinks kWh/hl Specific water consumption Water needed to produce one hectolitre of beer and soft drinks hl/hl

Specific CO2 emissions Fossil carbon dioxide emissions (direct and indirect emissions) emitted from the energy used to produce one hectolitre of beer and soft drinks kg CO2/hl

CO2 emissions from refrigerants Impact from refrigerants refilled or recharged in any system at a brewery or malting site. Expressed in CO2-equivalents kt CO2 Lost-time accidents (LTA) in Production and Occupational accidents that result in employees being unable to perform the full range of their normal duties for at least one day, Number Logistics excluding the day of the accident (LTA) Lost-time accident rate (LTAR) in Production Number of LTAs x 1,000 / number of FTEs Rate and Logistics (LTAR) Days lost (DL) in Production and Logistics Days absent from work (excluding the day of the accident) due to lost-time accidents Number (DL) Days lost rate (DLR) in Production and Number of DLs x 1,000 / number of FTEs Rate Logistics (DLR) Full-time equivalents (FTE) in Production Number of employees on payroll, where part-time workers are converted into FTEs by an equivalent proportion Number and Logistics and one person counts as maximum 1 FTE (FTE) Number of consumer-facing sustainable Campaigns towards consumers with the purpose of reducing the environmental impact of packaging by, for example, encouraging correct disposal Number packaging campaigns of used packaging through recycling messages Percentage of fermented produced volume Volume of packed fermented products that carry responsible drinking guiding symbols and/or equivalent text divided by total packed fermented Percentage carrying responsible drinking guiding production volume x 100% symbols and/or equivalent text

1 CO2 emission factors used for fossil fuels and electricity are in accordance with the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and IEA statistics: CO2 Emissions from Fuel Combustion (2014 Edition). Sustainability Report 2015 Section 6: List of reporting sites 61

Section 6 List of reporting sites 1

COUNTRY COMPANY SITES

Western Europe Bulgaria Carlsberg Bulgaria Pirinsko, Shumensko Croatia Carlsberg Croatia Koprivnica Denmark Carlsberg Danmark Jacobsen Brewery, Saltum, Carlsberg Fredericia Danish Malting Group DMG Denmark Carlsberg Breweries No production sites Estonia Saku Õlletehase as Saku Finland Sinebrychoff Kerava France Kronenbourg Kronenbourg Obernai Germany Carlsberg Deutschland Holsten-Brauerei Hamburg AG, Mecklenburgische Brauerei Lübz Greece Mythos Brewery Thessaloniki Italy Carlsberg Italia Varese Latvia Aldaris Aldaris Riga Lithuania Svyturys Utenos Alys Utena, Klaipeda Norway Ringnes E.C. Dahls Trondheim, Farris, Gjelleråsen, Imsdal Poland Carlsberg Polska Okocim Brewery Brzesko, Kasztelan Brewery, Szczecin Brewery Danish Malting Group – Polska Danish Malting Group Polska Sp. z o.o., Slodownia Strzegom Sp. z o.o. Serbia Carlsberg Srbija Carlsberg Srbija - Celarevo Sweden Carlsberg Sverige Falkenberg, Ramlösa Sverige Switzerland Feldschlösschen Rhäzüns, S Rheinfeld, Sion Carlsberg Supply Company No production sites UK Carlsberg UK Northampton

1 The reporting sites described in this section relate to sustainability data gathered primarily through our reporting and management system. Sustainability Report 2015 Section 6: List of reporting sites 62

COUNTRY COMPANY SITES

Eastern Europe Azerbaijan Baku (Company) Baku Brewery Belarus Alivaria Alivaria Kazakhstan Carlsberg Kazakhstan Carlsberg Kazakhstan (Brewery site) Russia Baltika Breweries Baltika Brewery St Petersburg, Baltika Don Brewery Rostov-Na-Don, Baltika Khabarovsk, Baltika Novosibirsk, Baltika Samara, Baltika Tula Brewery Tula, Yarpivo Brewery Yaroslavl, Yarpivo Voronezh Ukraine Carlsberg Ukraine Lvivska Brewery Lviv, Slavutich Zaporozhye, Slavutich Kiev Uzbekistan Carlsberg Uzbekistan Tashkent

Asia China Xinjiang Group Akesu Brewery, Kashi Brewery, Urumqi No. 2 Brewery, Wusu Brewery, Yining Brewery, Korle Brewery, Qitai Malting Plant Carlsberg Brewery Guangdong­ Carlsberg Brewery Guangdong­ (Huizhou) Ningxia Group Ningxia Xixia Jianiang Brewery Yunnan Group Kunming Huashi Brewery Yunnan, Dali Beer Co. Ltd Chongqing Brewery Group Mawangxiang Brewery, Dazhulin Brewery, Hechuan Brewery, Liangping Brewery, Wanzhou Brewery, Yongchuan Brewery, Qianjiang Brewery, Fuling Brewery, Gansu Jinshan Malting Plant Chongqing Jianiang Beer Co., Ltd. Liuzhou Brewery, Liupanshui Brewery, Panzhihua Brewery, Xichang Brewery, Boke Brewery, Shizhu Brewery, Yibin Brewery Chongqing Brewery Guoren Co., Ltd. Guoren Lixian Brewery, Guoren Changde Brewery, Guoren Yongzhou Brewery Carlsberg Beer Enterprise Management (Chongqing) Changzhou Tianmuhu Beer Co. Ltd, Lujiang Co. Ltd, Yancheng Co. Ltd, Hanshan Co. Ltd, Company Limited, Chongqing (“Eastern Assets”) Jiangsu Jinshan Beer Material Co. Ltd, Xuancheng Guquan Beer Co. Ltd, Anhui Tiandao Beer Co. Ltd, Huzhou Co. Ltd, Daliangshan Brewery, Jiuhuashan Brewery, Bozhou Brewery Carlsberg Hong Kong Not a production site Carlsberg Brewery Hong Kong Not a production site India Carlsberg India Kolkatta, Alwar, Aurangabad, Paonta Sahib, Hyderabad, Dharuhera, Bihar Laos Lao Brewery Pepsi Plant Vientiane, Lao Brewery Pakse, Lao Brewery Vientiane Malawi Carlsberg Malawi Carlsberg Malawi Brewery Ltd. (CMBL), SOBO Lilongwe, SOBO Mzuzu, Malawi Distillery Ltd., SOBO Blantyre Malaysia Carlsberg Malaysia Carlsberg Kuala Lumpur Myanmar Myanmar Carlsberg Bago Brewery Nepal Gorkha Brewery Gorkha Brewery Singapore Carlsberg Singapore Not a production site Vietnam Carlsberg Vietnam Phu Bai, SEAB Hanoi, Vung Tau Carlsberg A/S 100 Ny Carlsberg Vej 1799 Copenhagen V Denmark

Phone +45 3327 3300 www.carlsberggroup.com

CVR No. 61056416