Sustainability Report Table of Contents
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2020 Sustainability Report Table of Contents 01 Message from the CEO 3 05 Economic Performance 32 09 Brands that inspire us 89 Sustainable Scope of the Report 7 42 Appendix 106 02 06 Management Model 10 2 03 Who we are 11 07 People who move us 45 11 GRI Index 133 04 Good Governance 18 08 Planet we care for 75 Message from the CEO Dear readers: proudly say that, thanks to the commitment and invaluable efforts of our employees. CCU was able to quickly adapt to the circumstances, I am proud to present the CCU 2020 Sustainability Report, which provide safe working environments and more united than ever, documents our management of economic, social and environmental face these difficult times. During this challenging year, we not only issues. This report reaffirms our commitments and progress over the continued to fulfill our purpose and our business, but we were also past year, which are aligned with the Sustainable Development Goals able to innovate in order to support the community in the fight against (SDGs) of the United Nations, to which we adhered to 17 years ago. the pandemic. Undoubtedly, 2020 will go down in history as one of the most difficult Today I would like to thank all of our company's workers for their years for humanity. The COVID-19 pandemic put peoples’ health at effort, commitment, ability to adapt and to move forward with 3 risk, there was loss of life and CCU was not spared. The crisis forced confidence and with the unity that has allowed us to face these us to change the way we live in society, to keep our distance, to difficult times. isolate and protect ourselves, because the priority is and will always be to safeguard life. The pandemic has also been a huge threat to We fulfilled our commitment to BE CCU in extraordinary circumstances, economic activity, employment and progress in countries which, in implementing a regional plan, in the six countries where we operate, some cases, such as Chile, were already facing a deep social crisis. that allowed us to protect all those who make CCU a great company, while at the same time maintaining the supply chain and safeguarding In this context, as a company we focused from the beginning of the company's necessary financial stability. In addition to complying the pandemic on preserving the health of our workers and of all the with the measures dictated by the authorities, we sought external, Patricio Jottar N. people with whom we interact, and secondly, to continue supplying epidemiological advice, at the highest level; we implemented seven Chief Executive Officer our customers and consumers without interruption. It is precisely Corporate COVID-19 Protocols in all our work centers; we kept in adversity that leadership is tested and strengthened. Today, as our workers informed about preventive measures and self-care; has been our tradition throughout our 170 years of history, we can we launched the Telemedicine service: Teledoc; we published the 01 Message from 02 Scope of 03 Who we 04 Good 05 Economic 06 Sustainable 07 People who 08 Planet we 09 Brands that 10 Appendix 11 GRI the CEO the Report are Governance Performance Management move us care for inspire us Index Model COVID-19 website; we implemented COVID-19 Golden Rules; and we thousand kilos of food, benefiting more than 10 thousand families, implemented distance working for thousands of people, whenever supported the health system by providing 40 hospital beds and 1 possible, among other initiatives. thousand personal protection items. In addition, together with other companies, the subsidiary contributed 50 thousand units of alcohol In challenging times, it is imperative to continue looking to the future gel, which was given to the Red Cross. with optimism. As a company, we can contribute, using our own operations, with innovative projects to help our community move VSPT Wine Group donated PCR laboratory equipment to the Ministry forward. With this purpose, in 2020 we developed initiatives beyond of Health, in order to help increase the country’s virus detection the usual scope of our business activity to contribute to the public capacity, and also contributed by helping in the process of sanitizing health emergency. streets in several locations in Chile. Using alcohol obtained from the de-alcoholization processes of Meanwhile, in the context of a freeze of international flights, we our Cristal Cero and Heineken 0.0 beers in Chile, we produced worked in coordination with the Chilean and Colombian Foreign 50 thousand liters of "CCU Alcohol Gel", which we donated to the Ministries in order to make a humanitarian flight available for the 4 Ministry of Health and to the Ministry of Social Development, the repatriation of about 160 Colombians and Chileans who wished to Municipality of the Metropolitan Region and other organizations. return to their countries. Inspired by our Cristal and Andina brands, We also distributed the hand sanitizer in our places of work, so that we were able to reunite families in the midst of the public health ways to support them with initiatives such as: "Almacén Seguro" our employees could use it to protect their health. Likewise, using emergency. (Safe Store), which included sanitary protection kits for neighborhood alcohol from our subsidiary Compañía Pisquera de Chile CPCh, we stores, with more than 160 thousand face shields, which were produced 60 thousand liters of "CCU Disinfectant Alcohol", a solution Meanwhile, with the "Strength for our Heroes" campaign, together made from PET preforms. We also developed applications such as used as a sanitizer for floors and surfaces, which we delivered to with our partners Nestlé, PepsiCo, Carozzi and Watt's, we delivered 45 "Yo Invito" and "Tu Mesa", to ensure the safe opening of bars and the Ministry of Health and to the Municipality of the Coquimbo thousand snacks to thousands of health workers in public hospitals restaurants. Also, through our CRECCU Program, for grocers, grocers Region, and with the PET preforms, that we use to make our plastic who are giving their best every day against COVID-19. and minimarkets, we implemented various alternatives to support bottles, we manufactured 160 thousand face shields that we donated them in reactivating their businesses, such as the Consumption Plan to the authorities for distribution to hospitals, health centers and Given that some of our customers and very close partners belong to manage their payments, sending account statements by SMS and small customers in Chile and Uruguay, CCU Argentina donated 100 to one of the sectors most affected by the pandemic, we looked for the option of paying online. 01 Message from 02 Scope of 03 Who we 04 Good 05 Economic 06 Sustainable 07 People who 08 Planet we 09 Brands that 10 Appendix 11 GRI the CEO the Report are Governance Performance Management move us care for inspire us Index Model These are just a few examples of the initiatives that we implemented, Sustainability Index in Chile for the third consecutive year and, for the in all countries where CCU operates, including the donation of non- second time, of the MILA Pacific Alliance Index; and we obtained first alcoholic products to thousands of families. place for the beverage industry in the MERCO Corporate Reputation award in Chile. As was the case in 2019, we were recognized as the Meanwhile, I am proud to report that we met the goals proposed greatest innovators in our industry in the Most Innovative Companies in our Environmental Vision 2010-2020: We reduced greenhouse 2020 Ranking, in which CCU was received the award in the holding gas emissions per liter produced by 35.7% (target was 20%), we category, while our subsidiaries CCU Chile, CPCh and VSPT Wine reduced water use per liter produced by 48.6% (target was 33%) and Group each received the top prize in their categories. in terms of solid industrial waste recovery we reached 99.4% (target was 100%). With these achievements, we renew our commitment In terms of our results, the closure of bars and restaurants caused a to care for the environment, with additional and more challenging relevant impact on consumption occasions, especially in the second goals for 2030: to reduce water consumption (target 60%), to reduce and third quarters of 2020, where our volumes decreased by 12.0% greenhouse gas emissions (target 50%) and to valorize solid industrial and 1.8%, respectively. However, in the last quarter of the year we were waste (target 100%). able to recover, with volumes increasing 10.6%, thanks to a strategy 5 that prioritized maintaining the scale of our business, thanks to the We have also incorporated three new goals: To use 75% of electricity growing strength of our brands, the development of our portfolio and from renewable sources, to achieve that 100% of our containers excellent commercial execution. and packaging materials be reusable, recyclable or compostable, and to reach the goal that our containers and packaging materials Thus, in 2020 our consolidated volumes increased by 2.2%, totaling contain an average of 50% recycled material. All of this is part of our 30,7 million hectoliters. At the financial level, our EBITDA decreased Environmental Vision 2030, which includes CCU's operations in Chile, by 11.7%, totaling CLP 296,405 million, while net income attributable Argentina, Bolivia, Paraguay and Uruguay, CCU's responsibility to our to the owners of the controller reached CLP 96,152 million, 26.1% planet is irrevocable, and we are moving towards a Circular Economy lower than in 2019. These lower financial results are explained by in all the countries where we are present. negative external effects, mainly related to the devaluation of the Chilean and Argentinean peso, and the deterioration of higher-margin These advances in Sustainability have been recognized and in 2020 consumption occasions, as a result of the public health crisis.