SUSTAINABILITY REPORT 2016 Carlsberg UK Sustainability Report 2016 1 CONTENTS Our business Introduction

IN BRIEF Where we are: Our business ...... 1 1,700 Group CEO forward ...... 2 People employed in the UK Operating Offices: Strategy - Contributing to a better society ...... 3 Northampton UK CEO forward ...... 3 Leeds 807m Priority areas : Pints of brewed Northampton ENERGY & CARBON Brewing with tomorrow in mind ...... 5 Logistics & Warehousing Sustainable logistics ...... 6 National Distribution 4 Developments in sustainable packaging ...... 6 Of the top 20 Centre: Northampton in the UK WATER Reducing UK consumption ...... 8 Increasing water efficiency ...... 8 12.5m Km travelled in delivering

RESPONSIBLE DRINKING for our customers Our approach ...... 10 Regional Distribution Promoting moderate consumption ...... 10 Centres: Responsible marketing and consumer information ...... 12 Tingley, Leeds Stonecross, Warrington HEALTH & SAFETY Gravelly Park, Birmingham CEO message ...... 14 Croydon 2016 Summary ...... 14 Depots: Alloa Nashmead Supplementary Bourne Durham Ipswich Southampton RESPONSIBLE BUSINESS Torquay Fair responsible business ...... 17 Community engagement ...... 17

Carlsberg UK Sustainability Report 2016 In brief 2 CEO FOREWORD

Charting our course Our Dali brewery is putting clean, renewable energy technologies to work with the installation of over 8,000 solar panels. Cees 't Hart, CEO, Carlsberg Group

Sustainability is a subject close to Development Goals gained traction, we were Reflecting on the past year, I am especially This report serves as our annual communica- my heart. It is also central to the excited to initiate research-led relationships proud of the Cradle-to-Cradle® certification tion on progress and underlines our commit- Carlsberg Group’s purpose “to with expert organisations such as Business of the Kronenbourg 1664 bottle and the solar ment to transparency. for Social Responsibility, the Carbon Trust and power installation in Dali, China. We contin- brew for a better today and WWF. Together, we will hone our sustainabili- ued to promote responsible drinking, with The world promises to be quite a different tomorrow”. In 2016, we embedded ty strategy and define new ambitious targets, targeted interventions at the heart of our place in 2022, the end year for our SAIL’22 sustainability in our new Group to be announced later in the year. approach. In connection with Global Beer Re- strategy. Much can happen between now and strategy, SAIL’22, as part of our sponsibility Day, I joined the Danish volunteer then. However, I am confident that the course aim to create a winning culture Our materiality process highlighted the four group Night Owls and was impressed by their we have set puts us in a strong position to priority areas with the greatest impact on our dedication. We also launched a Groupwide continue brewing probably the best beers in throughout our business. business and society. These are Energy & car- training pro-gramme to initiate the cultural the world, and to make the Carlsberg Group bon, Water, Responsible drinking and Health transformation needed to achieve SAIL’22. an even more attractive company for share- In the year since SAIL’22 was launched, I have & safety. I am pleased with the progress we holders, employees and society. witnessed many examples of the pioneering have made against our 2016 targets in the We made investments in a range of sus- spirit this company was built upon. Our first three areas. However, I cannot say the tainability programmes in 2016, and I look Cees 't Hart founder, J.C. Jacobsen, was committed to same about our health & safety performance. forward to seeing these come to fruition in CEO, Carlsberg Group improving brewing and society, giving us the 2017. They include developments in sustain- foundation for our purpose. Today, we build on I was deeply saddened to learn of the deaths able packaging and in technologies to reduce his legacy through our sustainability activities of one Carlsberg employee and four employ- our use of water and increase our use of and contribute to a better tomorrow wherever ees at minority joint ventures and contractors renewable energy. In the broader context, the our brands are brewed and sold. in 2016. Our ultimate ambition is to achieve a Carlsberg Group continues to support the UN culture of zero accidents and we are de- Global Compact and the implementation of This year, as global initiatives such as the Paris termined to pursue this goal with renewed its Ten Principles. Climate Accord and the UN’s 17 Sustainable vigour in the coming months and years.

Carlsberg UK Sustainability Report 2016 In brief 3 STRATEGY

reviewing the way we do things, investing in Foreword from technology and resourcing new ideas that Contributing to a our Carlsberg UK can help us to improve our sustainability CEO performance. Our fleet has reported a 23% reduction in accidents, brewery emissions better society Here at Carlsberg UK, are down by 5.2% and our partnership with organisations like Drinkaware is yielding sustainability is a key priority, real results in education and awareness The Carlsberg Group has a that emerged as most crucial for our business driving the way we develop around alcohol misuse. new, restructured approach to and stakeholders are Energy & carbon, Water, our culture, our people and our Responsible drinking and Health & safety. business. It’s also important to note that in relation sustainability. Underpinning our to the environment, even the smallest, licence to brew and operate, we Focusing on these four priorities, we aim to incremental improvement can make a huge regard this as essential to the bring about positive change in all the areas Our sustainability journey since 2010 has difference to our impact and so reductions touched by our business: seen some significant improvements in in our bottle crown weights and fleet fuel successful implementation of the all areas, from environmental impact to savings of 1%, make a valuable contribution Group’s strategy. • Contributing to the containment of climate corporate responsibility. Perhaps most to our ongoing, positive progress. change importantly, our people are fully engaged • Ensuring people have access to water in our sustainability mission; there’s a high However, this year, the news is far from Our new approach • Promoting a healthy lifestyle level of awareness of what sustainability being entirely positive. A serious safety In 2016, we carried out a materiality assess- • Improving workplace safety means to our organisation, why it’s incident at our Northampton brewery led ment with Business for Social Responsibility important and the part we can all to serious injury and tragically, to a loss of (BSR) to identify the most important With the support and input of external play in achieving our goals. life. I will speak more about this later in the sustainability management topics, risks and partners, we are now developing specific report (p.14), in the context of health and impacts for our business. The four priority areas targets for each priority to be launched in In 2016, it’s encouraging to see safety, but clearly, for the families of the 2017. that in many areas we have individuals concerned, for our colleagues continued to push forward, who were involved, and our team, the im- pact will continue to be felt for many years to come.

Looking ahead, we are inspired by Group ambitions set out in Sail'22 and look forward to seeing how new targets set to be announced this year will shape our sustainability plans for 2017 and over the coming years.

Julian Momen CEO, Carlsberg UK Energy & carbon

7% Reduction in relative carbon emissions 2010 since 2010 5.2% We’re harnessing innovation 2016 to sustain improvement Reduction in relative energy consumption from 2015 to 2016 at our Northampton brewery Achieved in line with strategic choice to reduce production volumes and focus on value

2 Sites with 100% waste diverted from landfill

And a cross-company average of 99.5% Carlsberg UK Sustainability Report 2016 Energy & carbon 5 ENERGY & CARBON Brewing with tomorrow in mind

Running a brewery that brews Brewing efficiency Across brewing and logistics, our total carbon utility usage when our brewery is running over 800m pints of beer every In 2016, relative CO2 emissions at our emissions in 2016 decreased by 17.2% to 38,391 at reduced production levels and a number year is a huge operation, and we Northampton brewery fell by 5.2% compared tonnes of CO2e. However, in relative terms, of projects are currently being progressed. to 2015, to 5.53kgCO2e/hl. This is extremely total emissions increased by 1.3%, largely Changes to the way in which we organise and recognise that understanding, and pleasing considering our strategic choice to due to the absolute fuel usage of our logistics run refrigeration will enable more efficient continuously improving our energy reduce production output in line with our operation remaining consistent with 2015, handling of weekend loads; a new building efficiency in this area is key to company strategy - to focus on value over despite lower production volumes in 2016. management system will control ventilation in achieving our overall sustainability volume - and the fact that our brewery is our packaging halls and we’re rethinking our most efficient when operating at capacity. In Utilities boiler layout, introducing new, more energy targets. absolute terms, emissions were down 22.5% to There are many examples of the ways in which efficient units. an all-time low of 25,297 tonnes of CO2e. Carlsberg UK continues to harness technology, innovation and the talents of internal and Waste WHAT WE SAID WHAT WE DID 2016 external stakeholders to continually enhance The Carlsberg Group’s commitment to the efficiency of our operations. reducing waste is now firmly embedded in our culture and policy making. We remain Energy efficiency In line with Group plans, we are currently extremely close to our target of 100% waste 2-5% annual reduction in relative consumption 5.2% reduction in relative energy consumption working towards achieving ISO 50001 Energy diverted from landfill. Overall in 2016, we for energy, water and CO2 used in the brewing at our brewery. 1.7% increase in water usage process Management System certification by 2018, achieved a result of 99.5%, with two sites, which will build on existing ISO 9001 and 14001 our Northampton brewery and Nashmead Sustainable logistics standards of quality and energy efficiency. depot, celebrating 100% success. 9% of our 80% of all secondary logistics drivers to have Against more challenging performance production energy was derived from waste achieved a B rating or higher in drivnig efficien- parameters (aligned with the Carlsberg Group) cy performance we achieved 26% A/B, 37% C but our efforts Tracking our energy usage has become and we achieved a recycling rate of 70%, an resulted in relative fuel savings increasingly critical as we deal with improvement on 2015. fluctuations in production volumes. In Carlsberg Circular Community 2016 we improved our data analysis for closer We also use different methods to gain Onboard 4 new partners in CCC 1 new partner - BillerudKorsnäs - onboarded for Green Fiber Bottle development monitoring of usage across all our key utilities. additional value from the raw materials In this way we can effectively forecast our used in the brewing process, benefitting the Cradle-to-Cradle R Certification requirements, rapidly identifying and resolving environment and generating income. Our R Obtain 1 more Cradle-to-Cradle product Certification obtained for the Kronenbourg 1664 any issues which might lead to wasted energy. spent yeast is sent to be reused in either the certification glass bottle food industry or in animal feed, where our A key focus for 2017 is to reduce our weekend used grains are also utilised. Fully Partially Not achieved achieved achieved Carlsberg UK Sustainability Report 2016 Energy & carbon 6

Sustainable logistics parameters, over 60% of our drivers achieved Developments in Circular mindset a very respectable rating of C or above (26% The principles of the circular economy inform A-B and 37% C). sustainable packaging the Carlsberg Group’s approach to sustainable Our fleet's fuel usage represents more packaging. We apply the 4Rs model – reduce, than 75% of total emissions in our logistics Most importantly, the revised parameters and Packaging protects our products during reuse, recycle, rethink – with the emphasis on operation and, therefore, a significant stretching targets have yielded sustainability transport, ensuring that they arrive with our rethink. proportion of Carlsberg UK’s overall emissions. success. Our fleet delivered a fuel saving of 1% customers in perfect condition. At the same In recent years, our fleet has become one of versus our 2015 performance, which equates to time, both our business and the environment the most efficient in the industry. During 2016, a saving of 40,694 litres of fuel and 109 tonnes benefit when we keep packaging to a The Green Fiber Bottle our 377 drivers travelled 12.5m Km – and did it of CO2. minimum. Our goal is to use packaging that Perhaps the best-known example of how we using less fuel per km than ever before. delivers optimal product protection whilst rethink our packaging is our breakthrough, In 2017 we will continue to be ambitious with using minimal resources and reducing our bio-based, low-carbon, Green Fiber Bottle. our targets which we expect to have a further environmental impact. Revealed in 2015, an early version of the bottle Fuel efficiency positive impact on the fuel consumption of our generated a high level of interest across the Our telematics system delivers accurate fleet. industry. As this innovation progresses through information on the performance of every the development process, it continues to driver which we can use to improve standards, attract attention and spark discussion. reducing fuel consumption and associated emissions. Read more about our Green Fiber Bottle Telematics data translates into an A-G www.carlsberggroup.com/sustainability performance rating for every driver. In 2016, we set ourselves the challenging target of 80% of all secondary logistics drivers to achieve a B rating or higher in driver efficiency Packaging in the UK performance by the end of 2017. Shortly In the UK, we have long been working to afterwards, we adopted new, challenging minimise the impact of all elements of our parameters in aligning our A-G systems with packaging. Mid-way through 2016, we reduced other markets within the Carlsberg Group the material gauge on our bottle crowns to to drive fuel-saving behaviours. We have 0.18g, representing a reduction of 0.31g per placed stretch targets on each of our five crown. key parameters (Overrun, Engine Idle, Harsh Braking, Overspeed and Green Band), and this During 2017 we are targeting further light- is redefining our performance expectations. weighting of our cans and have introduced a new 200g bottle for Carlsberg and Carlsberg Export (330ml), which is lighter than the Aiming high delivers results average for 330ml containers. Ultimately, we missed our 80% A-B target for the fleet, but against the new, tougher Water

9 Cycles of re-use through reverse osmosis 4.9% Reduction in relative water Cleaning water for more efficient consumption since 2010 brewery refrigeration Safeguarding the UK’s natural resources

2.91 hl/hl Water consumption in 2016

Technology and innovation continuing to drive industry leading performance Carlsberg UK Sustainability Report 2016 Water 8 WATER Tackling the water challenge

Water scarcity is a growing concern Since 2010 we have reviewed all aspects manufacturing. Unfortunately, brewing waste for many communities across the of our water usage across production and contains different organic compounds, and globe, which is why effective water implemented a number of projects, reducing our trial demonstrated that the ECU therefore our relative usage by 4.9% since 2010. does not effectively filter these out. The trial stewardship is a key focus area provided valuable information to share across for the Carlsberg Group. We are the industry. fortunate in the UK that water- Increasing water scarcity isn’t as significant as in Every new Carlsberg bottle is analysed to efficiency check for contaminants and any discrepancies many other countries, however, it is in shape, to prevent quality issues with our important that we continue to play Introduced in 2015 our reverse osmosis plant products. The bottles are then jet washed our part and drive efficiency in this continues to enhance the efficiency of our before filling. In 2017, we will commence a area. brewery. Evaporative condenser technology project to collect, filter and soften water used cleans water for general re-use for up to in this process for re-use in pasteurisation, 9 cycles, compared with the 1-1.5 cycles rather than sending it to waste. We expect this untreated water can be used. project to save around 200,000 Reducing UK hectolitres of water per year. Testing ideas is important as we develop our consumption brewing process. This year, we trialled an Another 2017 project will see water used in Electro Coagulation Unit (ECU) designed to centrifuging our beer, which currently drains Our brewery’s relative water usage showed clean waste water before it’s discharged. The into waste, redirected from production into our a slight increase in 2016 at 2.91 hl/hl, ECU process enables effluent in the water main water well for general cleaning purposes. compared to 2.86 hl/hl in 2015. As with to be collected and filtered out and works We expect this project to further reduce the many of our utilities, there are elements of well for waste water in other areas of food amount of water we require to usage which remain constant regardless of run our operation. production levels and in absolute terms water consumption reduced from 1.60m hl to 1.33m hl. Responsible drinking

25 million People reached globally 9.4 million through our activities on Global Beer Responsibility Visitors to the Day Drinkaware website The UK played its part in the Carlsberg Group's success Helping people to make informed, healthier choices

22% Reduction in harmful drinking since 2015 2 According to government statistics* Alcohol-free beers in our portfolio

Providing UK consumers with choice

* ONS, 2014 Carlsberg UK Sustainability Report 2016 Responsible drinking 10 RESPONSIBLE DRINKING Our approach to responsible drinking

At Carlsberg UK and across the industry partners through education and on WHAT WE SAID WHAT WE DID 2016 Carlsberg Group, we want to brew initiatives aimed at tackling alcohol-related harm. great beers that bring people Responsible packaging 100% of consumer facing primary packaging on A symbol warning consumers of the danger together, but importantly, we want alcoholic beverages produced by Carlsberg UK of drinking while pregnancy is carried on all people to enjoy them as part of a Promoting moderate to carry responsible drinking symbols Carlsberg UK produced products balanced, healthy lifestyle. Responsible marketing consumption All marketing materials to carry responsible 100% of our marketing materials carry a refe- Management approach drinking messages or the Drinkaware logo rence to drinking responsibly Our Group strategy commits us to contributing Industry collaboration to a better society (p.3). As part of this, we As a brewer, promoting the moderate Social media controls continually monitor and review the impact consumption of alcohol, and tackling its Social media accounts for each of our beer Age-gating active where available on our beer brands to activate age-gating measure to pre- brands' social media pages of our products on communities, and work misuse, is central to what we do. In order vent exposure to those under legal drinking age together with our industry partners to to have maximum impact, we work with proactively support consumers in making government and industry partners to find Product information responsible choices. common solutions to alcohol-related problems Information on ingredients and nutritional Progress made, with all Carlsberg and Carlsberg affecting the UK. values of Carlsberg branded products to be Export packaging produced in the UK carrying included on packaging or website information In the UK, we have made excellent progress in recent years, with government statistics E-learning showing that since 2005, harmful drinking has 100% marketing employees to be trained in Postponed until 2017 in line with Compass fallen 22%* and binge drinking by 14%. Whilst Carlsberg Group's Marketing Communications process these statistics show that good progress is Policy being made, we also recognise that alcohol Consumer choice misuse still exists and impacts society. We Alcohol-free products to be available as part of Two alcohol-free beers available therefore know that there is no room for our beverage portfolio complacency and continue to take positive We work closely with the Portman Group, action in combatting alcohol misuse. the responsibility body for drinks producers Fully Partially Not We do this through promoting moderate in the UK, which aims to promote responsible achieved achieved achieved consumption, marketing our products drinking, to help prevent alcohol misuse and to responsibly and by working together with foster a balanced understanding of alcohol-

* ONS, 2014 Carlsberg UK Sustainability Report 2016 Responsible drinking 11

related issues. As signatories of its Alcohol Marketing and Sponsorship Codes, we follow guidelines to ensure our beers are promoted in a socially responsible manner and only to those over the legal drinking age. Global Beer We also continue to fund The Drinkaware Trust Responsibility - an independent charity aiming to reduce alcohol related harm by helping people make Day better choices about how they drink.

During 2016, Drinkaware ran a number of targeted initiatives, including the launch of a new campaign; ‘Have a little less, feel a lot better’. The campaign aims to help men aged 45-64 make better choices about their drinking – as it was found that this age group September 2016 saw the regularly consumes above recommended second annual Global Beer levels. The campaign was a success, attracting Responsibility Day (GBRD), over 130,000 visitors to a web portal, which provides visitors with personalised feedback a worldwide collaboration and advice around their drinking habits. between brewers, retailers, police authorities and NGOs. Another success from 2016 was the expansion of the ‘Drinkaware Crew’ scheme, which is now GBRD promotes responsible live in 17 venues across England, Scotland and consumption of beer whilst Wales. Here, specially trained staff work in addressing issues around bars and clubs to reduce drunken anti-social behaviour amongst 18-24 year olds with the alcohol misuse. aim of keeping them safe. Between November 2015 and July 2016, over 1,800 females In total, 17 markets within the Carlsberg consumption. Employees were encouraged and on Carlsberg UK digital and social and 800 males received either physical or Group participated in 2016, reaching just to enter an inflatable video booth and channels. emotional support, including 271 individuals under 25 million people. answer the question – “What do you enjoy that were assisted in getting home safely. on a night out?” In addition, materials from Drinkaware with In the UK, we were proud to get involved by advice on beer as part of a healthy lifestyle Find out more engaging our employees in a light-hearted Food, friends, beer and selfies all featured were distributed to participants. www.portmangroup.org.uk video activity, designed to stimulate in the resultant short film that was then www.drinkaware.co.uk conversation on the topic of responsible shared on GBRD across internal channels, Carlsberg UK Sustainability Report 2016 Responsible drinking 12

Alcohol-free alternatives programme which will support awareness As drinking habits and tastes change, we’re and implementation of the policy across our committed to offering greater choice to organisation. consumers, enabling them to manage their alcohol intake. As part of this commitment, In 2016, marketing colleagues and external our portfolio includes Carlsberg 0.0%, and agencies completed online training modules in San Miguel 0.0% - which both provide all the the Committee of Advertising Practice (CAP), refreshment of a beer, without the alcohol. The and the Portman Group’s Alcohol Marketing popularity of the alcohol-free beer category and Sponsorship codes – to further enhance is currently growing at 15% in the UK* - and knowledge and understanding of UK-specific alcohol-free beer is a key focus area in the standards. Carlsberg Group’s Sail 22’ strategy. Consumer information In 2016, we made good progress on our Responsible commitment to make ingredient and nutritional information widely available, marketing and both online and on the packaging of our beer consumer information products (>1.2%ABV).

Our beer brands provide us with powerful Today, all packaging for Carlsberg and and far-reaching channels through which Carlsberg Export produced in the UK carries we can directly engage with consumers. At ingredient and nutritional information. Our Carlsberg UK and across the Carlsberg Group, goal is for 80% of our entire packaged beer we are committed to doing this in the right volume (>1.2%ABV) to achieve this standard way - ensuring that we communicate the right by the end of 2017 and we are on course messages and reach the right people. to achieve this. All Carlsberg UK produced products also display the ABV, a responsible Policy revisions and updates drinking symbol informing women of the risks Our promotional campaigns and consumer of drinking during pregnancy, and the website information are guided by our Marketing address for Drinkaware. Communication Policy, which sets consistent standards in the UK and across the Carlsberg Also by the end of 2017, ingredient and Group and reflects our commitment to nutrition information will be made available responsible marketing. This policy was either on pack or online for all Carlsberg beer updated in 2016 to reflect recent changes brands (>1.2%ABV). As per EU regulations, in industry standards. The revised guidance information will be provided per 100ml, will be rolled out in 2017 with all marketing enabling consumers to make choices which are managers undertaking a specialist e-learning informed and appropriate.

*Source: Nielsen ScanTrack P13 2016 & CGA OPMS P13 2016 Health & safety

9 45% Reduction in manual Logistics sites achieving handling incidents their targeted safety scores Demonstrating our commitment to As we continue our ambition toward safety training zero accidents

23% Reduction in fleet accidents

Showing solid progress Carlsberg UK Sustainability Report 2016 Health & safety 14 HEALTH & SAFETY 2016 summary

Serious safety lost their life and a second person also We set ourselves a range of There were significant reductions in accidents working as a contractor on the project was challenging targets relating to relating to manual handling (-45%), and incident at seriously injured. Our thoughts remain crush/traps (-30%), reflecting the successful with everyone affected by this incident, safety and accidents. These help programme of specialist manual handling Northampton and particularly the family, friends and us to maintain focus, reminding training delivered throughout 2015. colleagues of the two people concerned. us of the importance of upholding brewery safe behaviours within the rigorous Hazard toolkit The safety of our employees and all those In the spirit of an inclusive and positive safety employed to work on our sites is our protocols we have established culture and our continuing pursuit of zero I speak on behalf of everyone at Carlsberg number one priority and we continue to accidents, online training around ‘near misses’ UK when I say that we deeply regret support the authorities in their investigation Across the business, we saw a 36% reduction was rolled out across the business during 2016. the tragic incident that took place at our of the incident. in Lost Time Accidents (LTAs), a 33% reduction Interactive sessions, conducted electronically brewery on 9 November 2016. in Lost Time Days (322 in 2016 versus 480 in or through facilitators, focussed on proactively 2015) and a 44% reduction in non-LTAs. identifying and reporting potential hazards. A person working as a contractor on an Julian Momen All staff taking part were required to complete engineering project on our site tragically CEO, Carlsberg UK Nine logistics sites achieved their targeted a final review and assessment, and a poster safety score for the year and, overall, logistics campaign challenging every-day unsafe exceeded its 2016 improvement target for behaviour further reinforced the importance of accident reduction. personal responsibility. Carlsberg UK Sustainability Report 2016 Responsible business 00

in total collisions (432 compared to 563 in RoSPA recognition 2015). This equates to a rate of 5.64 collisions In February we were awarded Gold at the per 100,000 miles compared to 6.77 in 2015. Royal Society for the Prevention of Accidents By necessity, we work in a heavily regulated (RoSPA) Awards, which are now in their industry which governs all aspects of our 60th year and recognise excellence in safety logistics from the number of hours our drivers performance. spend behind wheel to parking and unloading of our vehicles. Our fleet is recognised as Logistics success one of the safest on the road and in 2016 our Tools such as Driver Risk Profile and training team co-created another bespoke, Microlise A to G help to optimise both our driver CPC module which will be rolled out environmental performance and our safety in 2017. The module focusses on transport record, maintaining our focus with data legislation and will ensure our drivers are kept outputs which each of our depots can review up to date with latest changes to European on a weekly basis. Since 2010, we’ve also and UK regulations. worked hard to improve the efficiency of our accident management process, and this work Sharing successes is now delivering positive results. At the Carlsberg Group’s Global 2016 EHS Conference in Serbia, Carlsberg UK’s Safety, 2016 saw significant improvements in relation Health and Environment (SHE) team was to the rate of accidents versus miles travelled recognised as the best performing SHE team across the UK, as we achieved a 23% reduction in Western Europe and went on to win Best Performing Global Health and Safety Team.

WHAT WE SAID WHAT WE DID 2016

Leadership training Run annual safety awareness events for safety Our planned November event was leaders across the business to share best prac- re-scheduled due to the incident at our tice and reinforce expected behaviours Northampton brewery

Developing culture Continue to develop an accountable safety Training and communication were further culture and zero accident mindset developed, and accidents were reduced in a number of key areas

E-learning 100% of employees with company cars to 71% of company car users took online undertake an online training module on safe assessment training during 2016 driving

Fully Partially Not achieved achieved achieved Responsible business About this section

Here we provide an update on several topics that fall outside our four priority areas but were assigned high importance New Code of Ethics & in our 2016 materiality assessment: Labour Conduct, presented by & human rights, Anti-bribery & corruption, Cody the Elephant Responsible sourcing and Product quality & safety. In the new e-learning module, Cody faces challenging situations and partici- It also covers Community engagement, pants help him to overcome them which is of special interest since we began to develop a new, globally coordinated approach last year.

£10,000 For Prostate Cancer UK

Raised by our people for Jeff’s Triple A March Introduction of a new behavioural framework Currently being rolled out to all employees and embedded in our leadership development and recruitment process Carlsberg UK Sustainability Report 2016 Responsible business 17 RESPONSIBLE BUSINESS

Fair responsible and safety, environment and business ethics. For the Carlsberg Group, 2016 saw the Local initiatives in 2016 beginning of a new approach to community We remain committed to getting involved in business Live By Our Compass engagement, aligning with our new corporate local campaigns and initiatives, and supporting In 2016, we introduced Live By Our Compass strategy and stakeholder expectations. our people in their efforts on behalf of the All Carlsberg companies work to the as part of our SAIL ’22 strategy. This reaffirms causes close to their hearts. Here are just a same Group guidelines governing the Group’s stance on business ethics and Working towards a better tomorrow selection of highlights from 2016. our understanding of integrity at personal, Whilst we continue to engage with local a number of key operational areas. commercial and corporate level. We have a community activities, both in the UK and Supporting our home county This ensures we achieve a consistent, new code of Ethics and Conduct (the Code) around the world, in 2016 a unified global For the seventh consecutive year, we were global approach in relation to which guides employees on ethical issues. This platform for community engagement was headline sponsor of the annual Carlsberg UK human rights, ethical behaviours, code is included in our new behaviour training created, driven by our purpose: “to brew for Northamptonshire Food and Drink Awards programme which also covers anti-corruption, a better today and tomorrow”. Globally, our - celebrating excellence within the county’s quality standards and suppliers. one of our key targets for 2017. contribution to a better tomorrow is to make culinary and hospitality sector. Since the brewing more sustainable and to fund science awards launched in 2008, it has received over Product quality and safety around the world to find better solutions to 7,000 nominations for local businesses and Labour and human rights Our company is ultimately judged by the climate change and water scarcity. provided 60,000 food and drinks samples We are committed to conducting our business quality of the beers and other beverages we across the county. in a fair, responsible way with integrity and full deliver. Supplying safe, high-quality products respect for the law. Our overarching labour and that our consumers like to drink is always human rights (LHR) objective is to provide a therefore our top priority. In 2016 we updated safe, healthy working environment in which all our Quality & Food Safety Policy and through our employees can achieve their potential. our supply chain work, we ensure that all our products meet their defined specifications. In 2016, our LHR policy was reviewed for re- launch in 2017 and applies to all employees. Read more about our approach The Carlsberg Speak Up helpline is just one to Responsible Business of the ways any grievances can be reported www.carlsberggroup.com/sustainability and we work together, centrally and locally, to achieve resolutions.

Responsible sourcing We see it as our responsibility to understand Community the sustainability issues within our supply chain and to ensure that the high standards engagement we aspire to are mirrored and supported by our suppliers. Our supplier and licensee Code Engaging with the communities in which we of Conduct communicates the standards we operate is as important to Carlsberg today as expect from our suppliers in relation to four it was when J.C. Jacobsen founded Carlsberg, key areas: labour and human rights, health 170 years ago. Carlsberg UK Sustainability Report 2016 Responsible business 18

We also sponsored Northampton’s Best The Tetley arts space Bar None (BBN) scheme. BBN is national The Tetley contemporary art and learning campaign that has the purpose of promoting space continued to thrive in 2016, welcoming responsible licensed venue management a record 386,224 visitors through its door. Jeff Stelling on and raising standards in safety, training and Since production ended at the Tetley brewing operations across the late night economy. It’s site in Leeds, we’ve continued to work closely the March a collaborative effort between Police, local with local authorities and other stakeholders authorities, the alcohol industry and licensed to repurpose the old headquarter building, Ten walking marathons 24 of our employees joined Jeff on his venues. and showcase the iconic brewery and march between Northampton, home brand’s heritage. in ten days – that was the of our head office and brewery, and Find out more challenge for TV personality Milton Keynes. James Beeby, Director www. northamptonshirefoodanddrink.co.uk Find out more Jeff Stelling and Hartlepool of Fundraising at Prostate Cancer UK www.thetetley.org said: "I want to say a huge 'cheers' to the United chairman, Russ Green, team at Carlsberg. Walking 22 miles and in an epic fundraiser for raising £10,000 was phenomenal. It is Supporting the future of brewing Prostate Cancer UK. with support like this that we can take the Three years ago, brewers at our Research next steps to stop the disease from being Laboratory in discovered a bottle Carlsberg was official partner to Jeff’s a killer." Overall, Jeff's March 2016 raised a of the world’s first quality lager, which was March, which kicked off at Victoria Park, total of £300,000 for the charity. brewed in 1883 and used the world’s first pure home of Hartlepool United FC, and yeast, developed at the . ended 262 miles and 32 club stops later, Three years on, and they had recreated the at Wembley Stadium, the home of the Find out more lager, cultivating the yeast and using 19th England football team. prostatecanceruk.org/jeffsmarch century brewing techniques to create a limited run of the 1883 beer, named ‘Re-brew’. Employee engagement Every year, our employees demonstrate We made the UK’s limited allocation of their passion for good causes in their local Carlsberg Re-brew available for sale in communities, giving their time to help out November – with all proceeds to go to a and raise vital funds. The company plays a nominated beneficiary. That beneficiary supporting role through making available would be a selected Master’s student at the community volunteer days and £150 University of Nottingham’s International matched fundraising. This year, our people Centre for Brewing Science – covering their surpassed themselves - making a difference entire course fees, plus sending them to by taking part in activities ranging from Copenhagen to tour the Research Laboratory mountain hiking to gardening, and mud for themselves. running to decorating a local care home at The winner of the competition will be Christmas. £300,000 announced in 2017. FOLLOW OUR SUSTAINABILITY STORY AND JOIN THE CONVERSATION

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