Sustainable Development Report 2018 2018

Our Contribution to Implementing Agenda 2030 SUSTAINABLE DEVELOPMENT REPORT 2018

TABLE OF CONTENTS 102-14

KOMPANIA PIWOWARSKA 6 About 8 The Company’s Management Team 10 Brands, products, new launches and awards 11 Management approach 14 Risk management 16 Internal control system 16 Our stakeholders 17 Membership in organisations 19

OUR CONTRIBUTION TO ACHIEVING SUSTAINABLE DEVELOPMENT GOALS 20 Good health and well-being 25 Quality education 33 Gender Equality at Kompania Piwowarska 35 Clean water and sanitation 37 Affordable and clean energy 39 Decent work and economic growth 40 Industry, innovation and infrastructure 46 Reduced inequalities 48 Sustainable cities and communities 51 Responsible consumption and production 55 Climate action 58 Combatting corruption 61 Partnership for the Goals 62 Kompania Piwowarska’s commitments for 2019 63

ABOUT THE REPORT 64 Tables with GRI numerical indicators 68 GRI content index 76

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SUSTAINABLE BUSINESS AS THE FOUNDATION FOR DEVELOPMENT 102-14

We are very pleased to present you the eleventh The increased demand for non-alcoholic is now a Kompania Piwowarska also works for the benefit of the These are only selected indicators presented in the sustainable development report of Kompania major and strong market trend. In 2018 we achieved an communities where we produce and sell our beer. For sustainable development report by Kompania Piwowarska. Piwowarska, a leader on the domestic beer market over 85% sales growth of non-alcoholic beer driven by, several years now the Lech brand has carried out its Please feel kindly invited to read this publication and share and one of Poland’s top companies focused on the among other things, our Lech Free 0,0%, a beer with no LECHSTARTER programme. As part of this initiative, in your observations and comments about our company’s implementation of the best sustainable business alcohol and an excellent alternative for all who focus on 2018 we allocated PLN 1 million to projects submitted by impact on the environment. practices. This time we have decided to tell you how a healthy lifestyle. local communities. Many of our male and female employees our activities influence the implementation of specific engage in volunteering projects supported by Kompania sustainable development goals adopted at the United Our company is a large brewer, which is the reason Piwowarska. In 2018, 60% of people employed by our Nations forum in 2015, which are important to us and why we pay particular attention to environmental company participated in employee volunteering campaigns. our stakeholders. As part of the global Asahi Group, we protection. We incessantly continue our efforts to are aware that sustainable development requires joint make our maintain the lowest possible water Apart from the environment and communities, we also efforts and consistent actions in three areas: economic consumption levels. In 2018, it was 2.64 hls of water per look after our employees. We offer attractive employment growth, social inclusion and environmental protection. 1 hl of beer. I can proudly say that our performance in and development conditions and encourage to take care Best regards, this area belongs among the best in the industry. We of their own health. In the “Focus on Move” programme In 2018 we made a particular effort to promote are very pleased with our employees’ commitment to organised by Kompania Piwowarska, our employees covered the responsible consumption of alcohol: during raise OHS standards, which results in a lower number a combined distance of more than 300,000 kilometres. our sponsored events, at points of sale, and on of accidents at work. We monitor the level of CO2 Being a signatory of the “Diversity Charter” we attach great the packaging of our . Kompania Piwowarska emission, while maintaining its low level despite an importance to matters of gender equality. Male and female deliberately focused on promoting non-alcoholic beer. increased volume of beer production in our breweries. wages are on the same level, and women account for 32% of IGOR TIKHONOV PRESIDENT OF THE MANAGEMENT BOARD our company management.

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KOMPANIA PIWOWARSKA

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ABOUT KOMPANIA PIWOWARSKA

102-1, 102-5

Kompania Piwowarska is a joint-stock company, which on 31 March 2017 became part of Europe Group owned by Japan’s Asahi Group (it had been part KOMPANIA PIWOWARSKA of SABMiller group before). Asahi is a global player in the beer, spirits, non-alcoholic IN POLAND beverages and food market, with a history spanning 130 years and a 49 percent share 102-4, 102-6, 102-7, 102-8 of the Japanese beer market. Asahi Super Dry is its flagship beer brand. Headquartered in Poznań, Gdańsk Kompania Piwowarska owns Szczecin 3 breweries: in Białystok,

Tychy and Poznań, where we Toruń Białystok brew beers that are preferred Poznań by Poles. In 2018 we directly Warszawa Łódź employed a total of 2,726 Lublin Wrocław people.

Rzeszów Kraków Our products are sold primarily in Poland, but we export them to 16 countries. Germany, Netherlands, UK and United States are our biggest export markets. In 2018 we started to export beers to Hungary. With OUR BUSINESS RESULTS IN 2018: being the most popular brand of exported beer, our exports totalled 667,000 hl of beer. INCREASE IN MARKET SHARE In addition to three breweries, TO 36.3% * we own: ■■ 3 distribution centres at our The Asahi Group breweries (Poznań, Tychy and Białystok) includes over INCREASE IN BEER SALES ■■ 1 distribution centre in TO 130 Warsaw 13.6m hl subsidiaries and 70 ■■ 12 sales districts across the manufacturing plants country worldwide. 4 NEW MARKETS – WE EXPORT OUR BEERS TO 16 countries

* According to GUS

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THE COMPANY’S MANAGEMENT TEAM BRANDS, PRODUCTS, NEW 102-18 LAUNCHES AND AWARDS MANAGEMENT BOARD 102-2 OUR BRANDS

IGOR TIKHONOV PRESIDENT OF THE MANAGEMENT BOARD We stay loyal to our mission as we keep beers known in Poland for generations, but also launch several new products each year.

MARCIN NIKIEL JACEK KOPIEJEWSKI IWONA VICE-PRESIDENT: VICE-PRESIDENT: DOKTOROWICZ-DUDEK FINANCE TECHNICAL VICE-PRESIDENT: MARKETING

WOJCIECH MOLIŃSKI MICHAŁ MROWIEC HIKARU SATO VICE-PRESIDENT: VICE-PRESIDENT: MEMBER OF THE HUMAN RESOURCES SALES MANAGEMENT BOARD

According to the Statutes, the Board takes into account not only the consists of three to nine members Company’s financial results, but also (currently 7). The Supervisory accomplishment levels for other goals, Board appoints and dismisses the including the area of sustainable growth. President of the Board and, upon his recommendation, other members of Igor Tikhonov replaced Andrew the Board. The Supervisory Board Highcock as President of Management evaluates the Board’s performance and Board in October 2018. Other members while establishing its remuneration of the board remained in their posts.

SUPERVISORY PAOLO LANZAROTTI ANDREW BAILEY TOMAS KRCIL BOARD

According to the Statutes, the Board’s Shareholders’ Meeting. The composition term is three years and it consists of of the Board remained unchanged in three to six members (currently 3) 2018. appointed by a resolution of the General

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In 2018 we launched new beers and expanded our brands that Polish consumers know perfectly well. Our beers are not only appreciated by consumers - as proven by sales results, but also receive high notes and awards at the most important beer competitions.

LECH FREE 0.0% KSIĄŻĘCE IPA KSIĄŻĘCE PORTER Alcohol-free , ideal for Beer with intense hops aroma Beer with a deep, KSIĄŻĘCE IPA KSIĄŻĘCE CIEMNE KSIĄŻĘCE PORTER those who loves bitterness and distinguishable notes of almost black colour, AWARDS AND MENTIONS FOR ŁAGODNE [DARK MILD] in beers. The 0.0% alcohol ■■ Bronze medal in the ■■ Second place in the citrus and tropical fruits. We highly powerful extract OUR PRODUCTS recipe makes it possible to brew it using Pale Ale and (20%) and complex American Pale Ale category ■■ Third award in the history Baltic Porter category at enjoy the full taste of this Pilsen light barley malt and as sensory profile, in at the Gold Beer 2018 of Chmielaki Krasnystawskie the 2nd Specialty Beers beer also on busy days. many as six varieties of New which one can find competition – bronze medal in the Dark Competition organised Beers with up to 18° Plato by the Hugo Kołłątaj World aromatic hops: Citra, intense bitterness and ■■ Silver medal in the Extract category Agricultural University Mosaic, Cascade, Centennial, pronounced sweetness, American Pale Ale & in Cracow and the Azacca and Pekko. both supplemented with American India Pale Ale ■■ Silver medal in the dark Fermentation Technology smoked acidity typical for category at Chmielaki lager category at the Good School this kind. Krasnystawskie Beer 2018 competition

ŻUBR LECH PILS

■■ Winner of “Handel” monthly ■■ Bronze medal in the light REDD’S BIANCO CAPTAIN JACK magazine’s poll in the beer lager category at the Good Beer with a slightly dry taste Beer with a rum flavour, inspired brand category. Żubr was Beer 2018 competition of grapes. by the adventurous world of recognised as consumers’ pirates. Captain Jack is a proposal favourite beer in 2018 for all those who like breaking the routine and exploring the unknown. Aimed at young people, thanks to its outgoing personality it is bound to be a star of all social encounters.

KEY EFFECTIVENESS INDICATORS: 6 “EAGLE” TITLE IN THE THIRD EDITION THE NUMBER OF MENTIONS IN THE OF “WPROST” WEEKLY MAGAZINE’S 10TH EDITION OF THE PRESTIGIOUS COMPETITION AS A LEADING POLISH NATIONAL SALES AWARD You can find out more about brands here: REPRESENTATIVE OF ITS INDUSTRY IN COMPETITION WIELKOPOLSKIE VOIVODESHIP

www.kp.pl/nasze-piwa

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STRATEGIC PRIORITIES

MANAGEMENT APPROACH

103-1, 103-2, 103-3

Our strategy is consistently based on strong foundations worked out Our mission: PREMIUMISE SCALE OUR WINNING SIMPLIFY in previous years. Deliver on our OUR SCALE PREMIUMISATION WHERE WINNING TO INTENSIFY MATTERS MOST Thanks to our strategic priorities great taste we have strengthened our leading promise and bring position in the Polish beer industry, we sold more beer, increased more fun to life. exports, and thanks to our health FOUNDATIONS and safety policy we have reduced the number of accidents. Behaviours of the Asahi Breweries Europe Group (ABEG)

Committed Cooperative We do what we say we We are stronger when we

will do. work together.

Bold We are clear and decisive in whatever we do. Curious We are open minded and discover better ways.

Empowering I bring out the best in my people

Employee engagement Recruitment Safety, development and retention of skills

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10 Consumers Emloyees RISK MANAGEMENT OUR Public administration 9 Recipients Asahi 102-15, 416-1 The Integrated Risk Management System (IRMS) STAKEHOLDERS Media (Customers) Group consists of six Management Systems: We are continuously improving our Integrated Risk 8 Natural Management System (IRMS), which guarantees: ■■ Quality (ISO 9001:2015) environment 102-40, 102-42 ■■ Quality and safety of beers for our consumers ■■ Product Safety (ISO 22000:2005 and ISO/TS 7 Suppliers ■■ Minimising our negative impact on the environment 22002-1:2009 and FSSC 22000) This map of Kompania Piwowarska’s key ■■ Optimal health & safety conditions ■■ Environmental (ISO 14001:2015) stakeholders shows the scale of effective 6 Local governments ■■ Appropriate energy consumption levels ■■ Occupational Health & Safety (OHSAS 18001:2007) impact on the company as well as a degree of 5 Energy (ISO 50001:2011) ■■ importance of our company to its stakeholders. Local Risk analysis covers all levels: strategic, operational, ■■ Risk and Business Continuity The map was updated by the company Potential communities 4 employees financial, and our employees have been trained in management in June 2019. Social organisations system requirements and their responsibility for the The fraud risk analysis is carried out annually based on 3 Trade organisations above mentioned areas. the Fraud Risk Assessment document. We constantly identify and assess risks, give them 2 Research institutes / universities priorities, and plan actions to reduce or eliminate them. 1 Experts IMPACT 0 1 2 3 4 5 6 7 8 9 10

IMPORTANCE

102-43

We adapt our methods of stakeholder engagement, as well as the language used in communication with them, to the INTERNAL expectations and preferences of individual groups. The tools we use include, among others:

CONTROL SYSTEM ■■ Surveys (including employee ■■ Social media, intranet, maillings ■■ Employee volunteering satisfaction surveys, questionnaires ■■ Chairman of the Board’s videoblog programmes and LECHSTARTER Our internal control system is based law or protection of resources. The management team supported for suppliers) ■■ Helplines grant programme on the Japanese J-SOX model Corporate culture, business ethics by the Internal Control and Risk ■■ Print publications (including ■■ Dedicated e-mail accounts ■■ tours (Japanese Financial Instruments and integrity, a structure ensuring Management Department is “The World of Beer” company ■■ Webinars, meetings (including and Exchange Act, Art. 24-4-4) proper delegation of duties are responsible for effectiveness of the newsletter) and electronic roadshows – meetings of the Board and the best practices in business among important aspects of the control environment. The Internal publications (sustainable with employees across Poland) risk management. The aim of control environment. Audit Department checks regularly development report) ■■ Participation in external working internal control is primarily to limit if standards in this area are kept at ■■ Websites targeted at customers and groups operational risks, including those a sufficiently high level. consumers (corporate website and ■■ Fairs, conferences, training related to financial reporting, thematic portals – Check Your BAC!, programmes ensuring compliance with the ABCalkoholu.pl, portalgastro.pl)

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The most frequent interests and queries of our stakeholders deal with: MEMBERSHIP IN External stakeholders can submit questions ■■ Willingness to establish cooperation (including via e-mail: training offers and sponsorship requests) ORGANISATIONS ■■ Ingredients of beer and origin of hops 102-13 ■■ Requests to provide gadgets We are an active member of the society and we [email protected] ■■ Complaints regarding quality of products engage in the work and activities of trade and expert

and helpline: organizations, which aim to represent common industry interests and develop activities related to sustainable All questions are answered and complaints are 801 133 133 development in both environmental and social area. redirected to the Complaints Department, which contacts the reporting person to clarify the matter as Union of Brewing Industry Union of Packaging Industry soon as possible. Employers – Polish Breweries and Packed Products Employers EKO-PAK

Responsible Business Forum

SHOKOKAI Employers Union

British Polish Chamber of Commerce

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OUR CONTRIBUTION TO ACHIEVING SUSTAINABLE DEVELOPMENT GOALS

2 0 2 1 Kompania Piwowarska decided to present SUSTAINABLE DEVELOPMENT REPORT 2018 in this report its actions carried out in 2018 related to During the UN Sustainable Development the Sustainable 103-1 , 103-2, 103-3 Work is in progress in 2019 in the Asahi

Summit, which took place between Development Goals and Our sustainable development strategy Breweries Europe Group, which includes - 25 and 27 September 2015 at the specific tasks. In this carried out in previous years under the among others - our company, on creating a UN headquarters in New York, world way we are presenting slogan “Focus on beer” was modified in new sustainable development strategy for leaders adopted the document entitled our contribution to 2018 by a Kompania Piwowarska board’s ABEG. Transforming our world: the 2030 accomplishing the 2030 decision in order to reflect even better our Agenda for Sustainable Development. The modified strategy of our company Agenda. stakeholders’ voices and the UN sustainable The Sustainable Development Goals are development goals. We want to meet the currently consists of three pillars covering 17 goals, 169 targets and 304 indicators challenges that our company is facing in a broadly understood product and health meant to ensure that by 2030 the society constantly changing reality and align it with issues related to beer, the company’s lives a better, healthier and safer life directions set in the Asahi Group Holdings’ relations with its employees and in social, economic and environmental strategy. communities as well as its impact on the terms. These goals replaced the previous natural environment. 8 millennium goals and became an important guideline for business, both globally and locally.

As a company operating in Poland, KOMPANIA PIWOWARSKA’s using local resources, employing over 2,700 people, owning 3 large breweries CSR STRATEGY and as part of the global Asahi Group Holdings we have a significant impact on people and the environment around us. We have been approaching these issues very seriously for many years, paying attention to reducing our PRODUCTS AND PEOPLE AND NATURAL adverse impacts. Consequently, we HEALTH SOCIETY ENVIRONMENT promote drinking alcohol responsibly ■■ Responsible ■■ Human rights ■■ Saving water and in moderation, train sales people, consumption ■■ Healthy and affluent ■■ Energy use (CO save water and energy, support the 2 ■■ Non-alcoholic products local communities emissions and energy development of our employees and development from renewable business partners and engage socially. sources) ■■ Recycling Through its actions Kompania Piwowarska contributes significantly to accomplishing 13 of the sustainable development goals above (highlighted).

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Kompania Piwowarska’s current CSR strategy strives to achieve the following GOOD HEALTH AND WELL-BEING Sustainable Development Goals (2030 Agenda): Goal 3. Ensure healthy lives and promote Kompania Piwowarska contributes to

PRODUCTS AND HEALTH well-being for all at all ages achieving the following Goal 3 targets: – ROLE OF BEER 3.5. Strengthen the prevention and treatment ■■ Responsible consumption of substance abuse, including narcotic drug abuse and harmful use of alcohol ■■ Non-alcoholic products 3.6. By 2020, halve the number of global development deaths and injuries from road traffic accidents PEOPLE AND SOCIETY ■■ Human rights ■■ OHS ■■ Diversity and inclusion GROWTH OF ALCOHOL-FREE BEER ■■ Community engagement SEGMENT KEY EFFECTIVENESS INDICATORS: As required by law, in order to be considered NATURAL ENVIRONMENT alcohol-free any beer needs to have an alcohol ■■ Water use content of no more than 0.5%. We went further 85.6% ■■ CO emissions by launching in 2018 Lech Free 0.0% - a beer 2 INCREASE IN SALES ■■ Recycling that is practically entirely alcohol-free, and its OF ALCOHOL-FREE BEERS flavour variety Lech Free 0.0% Limonka z miętą [Lime with mint]. 0 This type of product, in addition to its taste benefits, allows you NO ADVERTSING OF ALCOHOL- to enjoy the taste of beer in situations where you should not drink FREE BEER IS TARGETED AT alcohol, e.g. before and while driving, at work, during exercise, PEOPLE UNDER THE AGE OF 18 etc. Therefore, we give our consumers a real beer alternative that helps them refrain from taking risky behaviors during and after alcohol consumption. What’s more, we encourage customers to reach for non-alcoholic beers. In 2018, we increased sales of non- alcoholic beers by a record 85.6%, which was the result of both growing interest in this market segment and a significant increase in our expenditure on advertising this type of beers.

We have always firmly believed that beer - even without alcohol - is a drink for adults. That is why none of our alcohol-free beer advertising activities is targeted at persons under 18 years of age, and we give an explicit recommendation to all sellers cooperating with us that this type of beer should only reach adults.

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ACTIONS PROMOTING We train how to prevent minors from access RESPONSIBLE ALCOHOL to alcohol KEY EFFECTIVENESS CONSUMPTION This year, on our own and in partnership, we conducted INDICATORS: again training for sellers in the skills of refusing sales As a responsible company, we take action to counteract and serving alcohol to minors. This type of training was negative phenomena associated with irresponsible provided to, among others, all beer salespersonel at the 557 alcohol consumption and promote moderate and largest mass event in Poland - the Pol’and’Rock festival, PEOPLE SELLING BEER DURING responsible alcohol consumption. OPEN-AIR EVENTS SPONSPRED BY sponsored by Lech beer. KOMPANIA PIWOWARSKA’S BRANDS TOOK PART IN OUR CUSTOM-MADE TRAINING COURSE The Union of Brewing Industry Employers – Polish Breweries, of which Kompania Piwowarska is a member, Alcohol is not a product continued its custom-made educational project like any other. We strive odpowiedzialnysprzedawca.pl. to ensure it is always consumed in a responsible 1,000 PEOPLE COMPLETED A COURSE way. ON REFUSING TO SELL ALCOHOL TO MINORS ON THE ONLINE EDUCATIONAL PLATFORM The online training platform ODPOWIEDZIALNYSPRZEDAWCA.PL In our preventive actions, including beer production, its www.odpowiedzialnysprzedawca.pl advertising and sales, we focus makes it possible for all alcohol sellers mainly on four areas: in Poland to enroll in a course on 717 ■■ Preventing the sale and consumption of alcohol by refusing to sell alcohol to minors. EMPLOYEES HAD THE OPPORTUNITY TO minors GET TO KNOW THE DECALOGUE OF A RESPONSIBLE PARENT ■■ Preventing driving vehicles under the influence of alcohol ■■ Promoting moderate and responsible alcohol consumption ■■ Preventing alcohol consumption by pregnant women Polish Breweries are also a partner of the campaign “There’s Strength in the Family” run by the trade union NSZZ “Solidarność” (Secretariat of the Food Industry, KEY EFFECTIVENESS Inter-Enterprise Organization in Kompania Piwowarska) INDICATOR: supporting parents in preventing minors from access to alcohol and premature alcohol initiation. The organizers encourage adults to set a good example of 4.8 mln 273,589 responsible behavior and for this purpose they created WE REACHED 4.8 MILLION PEOPLE ADULTS WERE ENGAGED IN OUR the Decalogue of a Responsible Parent. As part of WITH OUR COMMUNICATION RESPONSIBILITY ACTIONS PROMOTING RESPONSIBLE ALCOHOL the initiative information activities were carried out at CONSUMPTION events such as Kompania Piwowarska employee picnics. 92% MORE THAN 92% OF OUR EMPLOYEES WERE TRAINED ON RESPONSIBLE ALCOHOL CONSUMPTION OVER THE LAST 3 YEARS

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Check Your BAC! programme We help make responsible decisions We support road safety by promoting our free “Check We reach our consumers with communication about Your BAC!” application, which allows users to calculate responsible alcohol consumption through various KEY EFFECTIVENESS INDICATORS: alcohol level in blood after consumption. An online channels: version of the app is available at our website ■■ during events www.abcalkoholu.pl and can also be downloaded on ■■ at points of sale mobile platforms. ■■ through our product packaging 28,125 ■■ online NUMBER OF VISITS AT ABCALKOHOLU. PL WEBSITE (2018) In 2018 we also opened for the fourth time the special KEY EFFECTIVENESS “Check Your BAC!” zone for visitors at events of various We place great emphasis on running awareness actions INDICATORS: type and with various target groups – music events, in social media. beer fests for thousands of people, aviation picnics and 21,459 ‰ disco polo concerts. The zone accompanied the largest Our communication platform ABCalkoholu.pl, which NUMBER OF USERS OF ABCALKOHOLU.PL FANPAGE ON FACEBOOK mass events sponsored by Kompania Piwowarska’s beer 4 editions has been operating since 2009 and still enjoys great brands. The key WE HAVE ALREADY RUN 4 EDITIONS interest of consumers, is where we encourage users OF “CHECK YOUR BAC!” ZONE, WITH PRESENCE AT A TOTAL OF 42 to make informed and responsible choices related to FESTIVALS AND MASS EVENTS alcohol consumption. In 2018, we completely rebuilt the platform, engaging specialists in psychology and medicine. Thanks to this, people seeking information 85,000 on the impact of alcohol on health and social life have Our “Check Your BAC!” zone NEARLY 85,000 PEOPLE MADE USE even better access to comprehensive information that OF A BREATHALYZER IN OUR “CHECK helps them make informed decisions about reaching for was at all places attracting YOUR BAC!” ZONE AT VARIOUS EVENTS AND 39,000 TOOK PART IN alcohol. thousands of drivers who ANIMATIONS SUCH AS A LABIRYNTH after having fun should be OR A REACTION TIME METER WITH THE USE OF ALCO GOGGLES (2018) We place the platform address under the Responsible able to return home safely Drinking Messages on all packaging of beer that goes for themselves and other directly to consumers. road users. Over 326,000 PEOPLE DOWNLOADED OUR “CHECK YOUR BAC!” APPLICATION

GOLDEN CLIP FOR “CHECK YOUR BAC!” MOBILE ZONES AWARDED BY THE UNION OF PUBLIC RELATIONS COMPANIES IN THE SPECIAL EFFECTIVENESS CATEGORY

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We warn against drinking during pregnancy Together with a partner, the FASTRYGA Foundation, KEY EFFECTIVENESS INDICATOR: we continued our activities regarding FAS (Fetal Alcohol Syndrome) under the slogan “I am smart – I don’t drink alcohol when I’m pregnant”. The FAS problem only affects children of pregnant women 2.5 mln who have drunk alcohol. Is estimated that in Poland ACTIONS TAKEN BY KOMPANIA PIWOWARSKA AND ITS PARTNERS it is detected in about 900 newborns per year, while GENERATED OVER 2.5M CONTACTS in nearly 10 thousand children some of its symptoms WITH COMMUNICATIONS REGARDING FAS occur. September was once again the month of the most intense communication on FAS as we used the occasion of FAS World Day FAS (9 September) to start to communicate about this problem. The FAS campaign was also conducted at Medicover and LUX MED facilities throughout the country. MARKETING COMMUNICATION Representatives of departments from across Kompania Piwowarska are members of the Committee. Our Policy

Responsible alcohol consumption is one of the key areas on Commercial Communication presents a wide scope for the implementation of our business and sustainable of requirements that should be met by members of sales development strategy. That is why we have undertaken and marketing teams and the Committee as they develop a number of voluntary initiatives in this area, which or approve marketing messages in order to prevent all go far beyond the requirements imposed on the brewing undesirable situations or complaints. We also address our communication activities in the industry by legal regulations. This applies especially media and on the Internet to future fathers, families and to responsible marketing communication. In this way, 102-11 we are actively involved in preventing alcoholism and people close to future mums. We encourage everyone The industry’s self-regulation reducing the number of road accidents. to share responsibility for a child’s health, including not We adhere to the voluntary Code of Ethics in Advertising created by the Union of Associations offering even “a symbolic few drops” of alcohol We have developed and implemented internal policies Advertising Council. Beer advertising standards are to pregnant women. and guidelines: a separate section of the Code of Ethics in Advertising. ■■ Policy on Commercial Communication (updated One of the Union’s bodies is the Advertising Ethics in 2018 with regard to the rules for promoting Committee, composed of 30 adjudicators appointed by alcohol-free beers) representatives of the advertising industry, advertisers ■■ Product Portfolio Policy and media. ■■ Market Research Policy

417-3 Company employees and the Sales and Marketing In the reporting period, the Advertising Ethics Compliance Committee are responsible for the analysis Committee did not receive any complaint that it of all marketing activities – advertising campaigns, considered positively regarding Kompania Piwowarska’s promotion, sponsoring and point-of-sale materials advertising activities, ATL or BTL. – in respect of the requirements included in the abovementioned documents.

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RESPONSIBLE PRODUCT LABELLING QUALITY EDUCATION 417-1, 417-3, 103-1, 103-2, 103-3 Goal 4. Ensure inclusive and equitable Kompania Piwowarska contributes to We use Responsible Drinking Messages Entirely voluntarily, on the basis of an agreement quality education and promote lifelong achieving the following Goal 4 targets: By 2030, ensure equal access for all concluded with other members of the Union of Brewing learning opportunities for all 4.3 women and men to affordable and quality Industry Employers - Polish Breweries, on all packaging of technical, vocational and tertiary education, our beers addressed to consumers, on sales materials and including university in television and online advertising, we place signs warning By 2030, substantially increase the against alcohol consumption by: minors, pregnant women 4.4 number of youth and adults who have and drivers. relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship

CAREER FROM SCRATCH 103-1, 103-2, 103-3 KEY EFFECTIVENESS 417-2 From intern to specialist INDICATORS: In the reporting period no cases were found of non- Internship at Kompania Piwowarska is based on active compliance with regulations and voluntarily applied codes involvement in the functioning of the company. We understand on information and labelling of products and services. that beginnings in the new workplace may be difficult and so our 30 internships are paid and enjoy full support of other employees. NUMBER OF INTERNS

Programmes for students 4- or 6-week summer internships “In perfect Company” are held in all company departments and locations. We encourage 60 students of almost all fields of study to apply. NUMBER OF STUDENTS ON 4- OR 6-WEEK INTERNSHIP PROGRAMMES Induction training IN ALL COMPANY DEPARTMENTS AND LOCATIONS Each newly recruited employee undergoes compulsory two- day training, during which they find out more about Kompania Piwowarska, its history, market position, structure and company culture, employee support processes, Beer Ambassadors 235 programme and Alcohol ABC - training in responsible approach NUMBER OF SEASONAL WORKERS IN PEAK SEASON to alcohol while performing professional duties.

Seasonal work The specific nature of our industry enables seasonal work on fixed time contracts, with a package of extra benefits and beer allowance.

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404-1 EMPLOYEE DEVELOPMENT GENDER EQUALITY AT KOMPANIA PIWOWARSKA 404-2, 103-1, 103-2, 103-3 KEY EFFECTIVENESS INDICATORS: Goal 5. Achieve gender equality and Kompania Piwowarska is involved in We want to make the most of each employee’s empower all women and girls achieving the following Goal 5 targets: potential. To this end, we provide everyone with access 5.1 End all forms of discrimination against to a wide range of internal training programmes. They all women and girls everywhere relate to various areas: personal development and 2,726 5.5 Ensure women’s full and effective managerial skills (Leadership Fundamentals, Leading NUMBER OF EMPLOYEES participation and equal opportunities for Managers, Kompania Piwowarska Project Management PARTICIPATING IN TRAINING leadership at all levels of decision-making Way, My Academy of Skills, Sales Academy), as well as in political, economic and public life internal processes and procedures (basic and advanced brewing, training in operating production and filling 3.7 machines, workshops on keeping microbiological NUMBER OF TRAINING DAYS PER standards, Manufacturing Way, sensory training). Their EMPLOYEE PER YEAR Respecting diversity ■■ Code of Ethics subject matter and form are the result of the company’s Our employees are diverse, including in terms ■■ Policy to tackle violence, mobbing, business needs and employee development needs. They of sex, education, age, religion and nationality discrimination and harassment in the take the form of trainings and workshops. We also have - they include people from Ukraine, Great workplace an e-learning platform – kp.learncom.pl, which is the Britain, Russia and the USA. For us, diversity For years, we have been tackling basis for obligatory and voluntary training programmes is not only a value in itself, but also a factor hidden stereotypes in business through on a wide variety of subjects. The number of training influencing a good team atmosphere and continuous educational action. Almost all days per employee increased from 3.15 in 2017 to 3.7 in the company’s financial results. Therefore of our employees have completed diversity 2018. we manage it, i.e. we create conditions for management training, e.g. in the form of all employees to feel respected and to fully e-learning. The company does not monitor As part of a development program based on mentoring, develop their potential. Our actions in this data on belonging to minority groups. junior managers work with more experienced leaders area are based on: to improve leadership skills, expand business perspectives and exchange knowledge.

Employees of the Manufacturing and Supply Chain can also count on individual training in cases where a competence gap was identified in the assessment process or when they are prepared to perform a new EMPLOYMENT IN 2018* role.

Lean Leader Academy Training for Manufacturing and AGE WOMEN MEN TOTAL Supply Chain Leaders 2,726 <30 137 286 423 ■■ Building competences in the field of Lean EMPLOYEES Management INCLUDING 30-50 456 1,394 1,850 ■■ Refreshing Lean practices and culture in the organization >50 105 348 453 ■■ Necessary to perform the work in question, TOTAL 698 2,028 2,726 as required by law or internal regulations 698 2,028 ■■ Lasts a year and consists of seven two-day WOMEN MEN workshops NEARLY ALL EMPLOYEES HAVE FULL-TIME JOB CONTRACTS. * For the last day of the calendar year

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102-41 CLEAN WATER AND SANITATION 81.4% of employees were covered by the collective labour agreement. We strictly adhere to Goal 6. Ensure availability and sustainable 6.4 By 2030, substantially increase water- use efficiency across all sectors and ensure 102-12 a ban on discrimination management of water and sanitation for all sustainable withdrawals and supply of We belong to a group of 14 companies that were the first in the workplace Kompania Piwowarska has an impact on freshwater to address water scarcity and in Poland to sign the Diversity Charter in 2012. This is an and a principle of achieving the following Goal 6 targets: substantially reduce the number of people international initiative currently implemented in 18 EU equal employment 6.3 By 2030, improve water quality by suffering from water scarcity countries, and in our country initiated by the Responsible opportunities reducing pollution, eliminating dumping and Business Forum. We also make sure that women are always regardless of gender. minimizing release of hazardous chemicals involved in recruitment processes for senior positions. We and materials, halving the proportion of are actively working to increase their employment in our untreated wastewater and substantially company, perceived as “typically male”. In Technology and increasing recycling and safe reuse globally Production Administration department, as well as in central and marketing departments, gender proportions are fairly equal. The least women work in sales, distribution and production departments, which is why we have modified the recruitment ads to attract more female candidates.

GENDER EQUALITY 405-2 OPTIMAL USE OF WATER 303-5 103-1, 103-2, 103-3, 303-1, 303-2 In 2018 we added an indicator verifying remuneration KEY EFFECTIVENESS KEY EFFECTIVENESS INDICATORS: We use water throughout the entire production INDICATORS: levels by gender to indicators monitoring the chain, from crops to washing devices. Responsible implementation of our sustainable development water management is therefore key to both our strategy. Such analyses had been carried out in our business success and to minimising our impact on company before, but now they are implemented 25.6% 2.64 hl the environment. Our breweries remain leaders in the using an external IT tool prepared by the Institute for PERCENTAGE OF WOMEN EMPLOYED WE USE ONLY THIS AMOUNT OF AT THE END OF 2018 Asahi Breweries Europe Group in terms of effective Structural Research as part of the project “Methodology WATER TO PRODUCE 1 HL OF BEER. water management. We are constantly trying to reduce WE ARE AMONG WORLD LEADERS for assessing the pay gap and developing a tool to the use of water for beer production. Our breweries IN SAVING WATER. assess the gap between men and women’s pay” carried 32.3% in Poznań and Białystok receive water from municipal out in 2015 for the Ministry of Family, Labour and PERCENTAGE OF WOMEN AT water supply networks, and in Tychy additionally from Social Policy. The results of an analysis based on data MANAGERIAL POSITIONS – UP 1% FROM 2017 our own intakes. Water extraction for the needs of 37.5 mln hl for 2018 show that the organisational solutions used Kompania Piwowarska’s plants does not adversely by our company are consistent with the principles NEARLY 37.5M HL WAS THE TOTAL affect the state of regional water resources, which is AMOUNT OF WATER WE USED of gender equality. Comparing positions at the same confirmed by our annual water risk analyses. organisational level and taking into account a number from +2% to -3% of factors, such as: the basis of remuneration, working GAP BETWEEN MEN AND WOMEN’S PAY 0 time, seniority, age, education, employee assessment, the difference in men and women’s pay in our company NONE OF WATER RESOURCES IS EXPOSED TO RISK1 ranges from + 2% to -3% depending on a set of factors being analysed.

* Data calculated on the basis of reports on water risks developed for 3 breweries as part of the Group’s reporting process.

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AFFORDABLE AND CLEAN ENERGY

Goal 7. Ensure access to affordable, reliable, Kompania Piwowarska is involved in sustainable and modern energy for all achieving the following Goal 7 targets: 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix

7.3 By 2030, double the global rate of improvement in energy efficiency

103-1, 103-2, 103-3 ENERGY MANAGEMENT KEY EFFECTIVENESS INDICATORS: As part of the implemented Energy Management System (ISO 50001), we take numerous actions to improve the company’s energy efficiency. They involve, among others: ■■ improving technologies used in breweries 13.16% ■■ reaching for energy from renewable energy sources OF ENERGY OBTAINED FROM COMBUSTION OF BIOGAS WITH NATURAL GAS AS PERCENTAGE OF Several solutions enabling the reduction of energy consumption TOTAL AMOUNT OF ENERGY USED FROM FUEL COMBUSTION IN TYCHY have been submitted by employees as part of the Kompania 306-1 BREWERY’S BOILER PLANT of Ideas programme. Ecological education, which has been BREWERIES PRODUCED conducted for years, was also continued. Information campaigns WASTEWATER MANAGEMENT over 2.2 mln m3 provide hints on how each employee can save energy. 7.03% OF USED ENERGY FROM RENEWABLE We fully monitor the amount and parameters of OF WASTEWATER IN 2018. Types of fuels used in our breweries*: SOURCES produced wastewater and strictly adhere to the ■■ Lech Browary Wielkopolski (Poznań) – natural gas and principles of its treatment before entering the heating oil (in emergency situations) environment. Wastewater from the Tychy brewery first ■■ Tyskie Browary Książęce (Tychy) - natural gas, heating oil goes to a modern on-site pre-treatment plant, in other (in emergency situations) and biogas locations we channel it directly to municipal treatment ■■ Browar Dojlidy (Białystok) – the brewery receives steam plants. directly from the heat and power plant

Limiting the amount of wastewater produced is The brewery in Tychy uses biogas produced during the methane possible, among others, thanks to its partial recovery fermentation of organic compounds in the company’s wastewater and reuse. For example, water from a bottle washer pre-treatment plant. The use of biogas is very beneficial for the is used to clean empty boxes and there are recovery environment, because it generates significantly lower emissions installations for can rinser water (used for lubrication compared to hard coal or heating oil. The electricity supplied to of transporters). and used in our company partly comes from renewable energy sources. * In breweries in Poznań and in Tychy, heat energy consumption is calculated as the amount of fuel taken from primary sources multiplied by the heat of combustion. In Białystok, it is calculated on the basis of the supplied energy meter and the efficiency of the municipal boiler plant.

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DECENT WORK AND ECONOMIC GROWTH SAFETY AND HEALTH First Aid Road Safety 403-1 403-8, 103-1, 103-2, 103-3 403-5 The purpose of the “Conscious Driver Goal 8. Promote sustained, inclusive and and men, including for young people and at Kompania Piwowarska” programme OHS Policy In all of our locations we run regular sustainable economic growth, full and persons with disabilities, and equal pay for is to sensitize drivers to the causes of All employees of Kompania first aid training courses and provide productive employment and decent work work of equal value dangerous road situations. During the Piwowarska are bound by a Health and first aid points equipped with for all 8.8 Protect labour rights and promote training, participants acquire practical Safety Policy that specifies the so- the necessary means (including safe and secure working environments for skills in the field of safe, economical called Global Safety Standards (GSS). defibrillators and rescue bags). Kompania Piwowarska is involved in all workers, including migrant workers, in and eco-friendly driving of the car, as According to it, every production area Since 2016, the so-called Groups achieving the following Goal 8 targets: particular women migrants, and those in well as first aid. manager is obliged to carry out regular of Premedical Rescuers have been 8.5 By 2030, achieve full and productive precarious employment reviews of working conditions based operating in Poznań, Tychy and employment and decent work for all women on special checklists. Last year, the Białystok. In order to raise their skill Accidents implementation of the new version level, all rescuers underwent in 2018 403-2 of Global Safety Standards (GSS) - apart from regular in-house training In 2018, 10 recognised workplace began. Each year internal audits are - four training courses conducted by accidents occurred among carried out in selected areas. Moreover, professional paramedics. employees of Kompania Piwowarska independent external auditors carry and employees of the Temporary Every year, there are celebrations at Employment Agency working for our KEY EFFECTIVENESS out regular audits as part of the INDICATORS: OHSAS safety management system. our breweries of the World Day for company. All reported accidents were Safety and Health at Work, to which minor and employees did not suffer

Since 2016 we have been running we invite, among others, doctors, any serious injuries. As a result of the 50% 100% FALL IN THE NUMBER OF OF COMPANY PASSENGER CAR a programme to improve safety based external companies and Groups accidents, the injured persons were ACCIDENTS DRIVERS TRAINED ON on behavioural aspects (BBS of Premedical Rescuers. On such on sick leaves for a total of 305 days. A TRAINING TRACK >50% – Behavioral Based Safety). Based on occasions our rescuers conduct first During the reporting period there was FALL IN THE NUMBER OF SICK it, we are building an organisational aid training and demonstrations on only one accident involving an external LEAVES DUE TO ACCIDENTS MOST ENGAGED the subject. In 2018, the celebrations company employee. COMPANY culture in which safety is a value were extended beyond breweries for 397 IN DRIVERS’ for every employee, and caring NUMBER OF SAFETY LEADERS for it is a habit, even after working the first time and also took place at (UP BY 50) EDUCATION THE TITLE GIVEN TO OUR hours. We want employees to be the Management Board’s office in COMPANY BY THE POLISH sensitive to situations that could Warsaw. In addition, also for the first 99.06% VEHICLE RENTAL AND RATE OF COMPLIANCE WITH LEASING ASSOCIATION AND result in a danger, and to consciously time, first aid presentations took place GLOBAL SAFETY STANDARDS REPRESENTATIVES OF THE CAR participate in creating a safe work at employee picnics, where employees (GSS) FLEET INDUSTRY (SAFE FLEET AWARD) environment. The implementation of as well as their families could take part 30 the programme is based on so-called in demonstrations and exercises. In NUMBER OF EMPLOYEES HAVING HEARTSAVER FIRST AID CPR AED Safety Leaders who regularly observe addition, each participant of the picnic CERTIFACTES (AHA) the way their colleagues perform work. could consult a doctor or a paramedic Consequently, the identification of a and have basic checkups done, such number of risks associated with routine as pressure measurement, body fat staff tasks has been possible. measurement and BMI calculation.

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FRIENDLY WORK ENVIRONMENT 103-1, 103-2, 103-3 In addition, each employee is entitled to a monthly As part of the MultiSport card, employees and their allocation of a certain amount of beer (so-called beer families have unlimited access to 4,000 sports allowance). They can also benefit from subsidised 401-2 facilities in 650 cities throughout Poland. At the end meals in canteens located at our breweries and meet KOMPANIA PIWOWARSKA of 2018, over 1,000 employees and over 500 members outside business hours in company pubs in Warsaw, AFTER HOURS of their families used the package. We take care of Poznań, Tychy and Białystok to taste their favourite our employees and their relatives in a comprehensive brands at the employer’s expense. manner. We offer every full-time employee: CINEMA, THEATRE VOUCHERS FOR ONLINE 403-6 AND CONCERT TICKETS OR STATIONARY SHOPS AND ■■ a medical package in the Medicover network “Focus on Health” RESTAURANT CHAINS, PRE-PAID for the whole family, ensuring quick access to CARDS Every year, the Medicover Medical Center provides us TICKETS TO SHOWS specialists and, if necessary, to emergency medical AND SPORTS EVENTS with a report containing aggregate data on the health services COVERING THE COST OF of our employees. Based on it, we develop an annual FOREIGN TRIPS, STAYS AT ■■ attractive insurance and access to loans at a low MULTISPORT CARD RECREATIONAL FACILITIES, plan of preventive and educational activities. We also HOTELS AND PENSIONS interest rate support annual employee picnics with our actions. ■■ discounts on shopping in selected shops, food PASSES AND CARDS - TENNIS, Last year, the following were held as part of the SQUASH, AQUAPARK ETC. EDUCATIONAL COURSES service outlets and beauty salons. – LANGUAGES, COMPUTER programme: SKILLS, DANCING, SWIMMING, ■■ First aid training CAMPS AND OTHER SERVICES SQUASH ETC. FOR CHILDREN (PLAYGROUNDS, ■■ Emergency medical training for Groups of AMUSEMENT PARKS, SWIMMING Premedical Rescuers SCHOOLS ETC.) PAY-PER-MINUTE CAR RENTAL ■■ “How to prevent work-related back and joint pain” seminar ■■ “Why is it good to protect yourself against noise?” seminar ■■ Health Day at Medicover ■■ Dental check-ups

Sports activity Employees are motivated to run, walk and cycle as well as to do other sports mobilizes by a noble social goal (more in “Employee Volunteering”) and rewards for participating in individual competitions and group challenges. In addition, they can take part in organized runs sponsored by the Lech Free 0.0% brand and make use of healthy lifestyle tips that are regularly published on the “Focus on Move” platform.

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CONTRIBUTION TO POLAND’S ECONOMIC Almost 1.6 billion zloty – the total value of remuneration The operations of Kompania Piwowarska generate on GROWTH* generated in the Polish economy due to the activities of average 6.39 billion zloty of added value in the Polish 203-2, 413-2 Kompania Piwowarska economy*

Kompania Piwowarska has a huge positive impact on many sectors of the ■■ over 690 million zloty was received by those working in ■■ We generate the highest added value, 2.23 billion zloty, Polish economy: from agriculture, packaging industry, trade and gastronomy, trade and HoReCa as a result of selling our beers in food processing (beverage production) – this is where to professional and business services. ■■ Our suppliers and their subcontractors were able to pay we create direct added value as beer producers We generate this impact at all stages of the chain of value we create, i.e. over 730 million zloty of remuneration thanks to the ■■ As a result of sales of our products, we significantly ■■ obtaining materials and services used in manufacturing purchases we made influence the creation of added value in trade ■■ the production process itself - 1.66 billion zloty, and in the HoReCa sector ■■ distribution We sell our beers primarily in Poland and it is here where - 0.54 billion zloty ■■ selling our beers we also most often buy raw materials, supplies and services ■■ In industries in which we buy raw materials, supplies and At each of these stages we: needed for beer brewing and sales, thus supporting the services, and in industries related to them, we contribute ■■ hire employees and create new jobs activities of domestic suppliers. to the generation of a total of 1.96 billion zloty in added ■■ pay salaries Approx. 88% of supplies and services purchased each year value ■■ generate added value by Kompania Piwowarska come from Polish suppliers. We ■■ pay taxes spend on them a total of about 1.5 billion zloty. By hiring our own employees and indirectly influencing suppliers and subcontractors who give jobs to thousands of people and pay them remuneration, and also by selling our products, we have a positive impact on generating wages and salaries in many sectors of the national economy.

IMPACT DIMENSIONS 0.16 BN ZLOTY Taxes on KP’s operations 3.6 bn zloty (income taxes: PIT, CIT, social DIRECT IMPACT insurance, local taxes) Resulting from the companies’ core operations Taxes and fees 1.47 BN ZLOTY paid by Kompania 0.16 BN ZLOTY VAT (retail) Piwowarska and VAT (HoReCa) INDIRECT IMPACT related industries Generated by suppliers and 0.6 BN ZLOTY businesses in related companies in 2018 Taxes from related and industries industries (income taxes: PIT, CIT, social insurance, INDUCED IMPACT local taxes) 1.18 BN ZLOTY Generated though expenses of Excise tax the company’s employees and employees of related businesses

*Based on the report “Kompania Piwowarska’s * Added value shows the contribution of Kompania Piwowarska Economic Impact on the Polish economy in 2017”, to the process of production of goods and services in Poland. Deloitte Polska, June 2018. Added value is very similar to Gross Domestic Product (GDP) - when taxes on products are added to added value and subsidies deducted, we receive GDP for products.

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INDUSTRY, INNOVATION AND INFRASTRUCTURE ENVIRONMENT-FRIENDLY Selected examples of implemented pro- TECHNOLOGIES AND environmental ideas of employees, which Goal 9. Build resilient infrastructure, Kompania Piwowarska has an impact on PRODUCTION PROCESSES have streamlined work and resulted in promote inclusive and sustainable achieving the following Goal 9 target: energy and water savings: Company of Ideas industrialization and foster innovation 9.4 By 2030, upgrade infrastructure ■■ shortening of lighting operation time in Kompania Piwowarska encourages and retrofit industries to make them the labelling warehouse employees to participate in the programme sustainable, with increased resource-use ■■ changing the position of a tap with it runs called efficiency and greater adoption of clean and water for washing pH meters the Company of Idea. Employees are environmentally sound technologies and ■■ installation of an automatic air vent for rewarded for submitting and implementing industrial processes, with all countries taking more effective crates rinsing different concepts in different fields of action in accordance with their respective ■■ clarifying the operation time of a filling the company’s activities - also in the field capabilities and emptying control system of sustainable development. As part of ■■ replacement of the corroded pipeline Company of Ideas program our employees supplying water to the laboratory submitted in 2018 as many as 626 ■■ installing an electric boiler with suggestions for improvement, the most of RELATIONS WITH circulation to ensure a constant SUPPLIERS which concerned safety in the workplace - 412-3 ■■ temperature for the installation 102-9, 103-1 , 103-2, 103-3 which shows the involvement of employees ■■ fitting the installation with a hot water The quality of our products and our impact All newly concluded in the BBS (Behavioral Based Safety) usage meter and visualising it on the on the society and the environment - and project. contracts with suppliers operator’s screen consequently the perception of our brands - contain clauses confirming are strictly related to our suppliers’ practices. their knowledge Because of this, we approach the purchase of the Code and of all goods and services necessary for commitment to follow brewing beer in an extremely thoughtful way. its principles along with Coordination of orders takes place at a global KEY EFFECTIVENESS Kompania Piwowarska’s METER: level and a level of teams cooperating directly sustainable development with our business partners. The Supplier’s Code of Conduct is the main priorities. tool for raising sustainability standards 626 throughout our entire supply chain. It sets NUMBER OF SUBMITTED IDEAS - MOST OF THEM CONCERNED requirements for suppliers in the areas of: IMPROVEMENTS IN OHS AND THE AIM ■■ human rights OF THE REST WAS TO SAVE WATER OR ENERGY ■■ OHS ■■ business ethics ■■ environmental approach

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REDUCED INEQUALITIES Ethics Committee Reporting violations In assessing specific situations from the ethical point of The mode of responding to reported cases of violation of Goal 10. Reduce inequality within and We have an impact on achieving the view employees are supported by the Ethics Committee, the Code is available to all employees on the company’s among countries following Goal 10 target: which performs consultative and advisory functions. Infonet. New employees also obtain information on available 10.3. Ensure equal opportunity and reduce Among other things, the Committee deals with the reports reporting channels during the introductory training. inequalities of outcome, including by of possible breaches of ethical principles. In the event of Kompania Piwowarska’s employees and other interested eliminating discriminatory laws, policies suspected embezzlement, the Committee is assisted by the persons may use an external communication channel and practices and promoting appropriate Fraud Investigation Team. maintained by an independent organization that provides legislation, policies and action in this regard the opportunity to report irregularities in a completely anonymous and confidential manner. In addition, reports can be submitted, among others, by:

CODE AND COMMITTEE OF ETHICS 1. Compliance with regulations and business ethics SENDING AN E-MAIL TO [email protected] OR DIRECTLY TO THE CHAIRMAN OF THE 2. People and work environment 406-1, 103-2, 103-3 102-16, 103-1, 103-2, 103-3 COMMITTEE OF ETHICS, ETHICS OFFICER OR THE 3. Customers, consumers and communities KEY EFFECTIVENESS GROUP AND KP’S INTERNAL AUDIT DIRECTOR Code of Ethics 4. Sustainable development. INDICATOR: When making any business decision, regarding relations CALLING THE KP HELP LINE (801 133 133) In the Code of Ethics, among the 10 priorities for in the workplace relationships or collaboration with local sustainable development there are also provisions COMPLETING AN ONLINE FORM ON THE KP communities, we follow the system of values described regarding the need to respect human rights. WEBSITE (WWW.KP.PL/KONTAKT#FORMULARZ) in our Code of Ethics. It is a set of rules based on 20 ALL SUBMISSIONS, ALSO ANONYMOUS, integrity, openness, responsibility, justice and mutual NUMBER OF CASES REPORTED TO THE ARE CAREFULLY ANALYZED BECAUSE EACH In addition to the Code of Ethics, there are a number COMMITTE OF ETHICS (13 OF ETHICAL respect. Contracts concluded with suppliers and CASE MAY POSE A POTENTIAL THREAT TO of related regulations. These include the requirement NATURE, 7 REGARDING POTENTIAL THE COMPANY’S REPUTATION. IN JUSTIFIED customers include a commitment that they will also FRAUD CASES, 0 DISCRIMINATION SITUATIONS SUITABLE ACTIONS ARE TAKEN. to submit a conflict of interest declaration (the list of CASES) comply with the Code of Ethics. It is a publicly available persons covered by it is determined annually by the document (www.kp.pl/files/kodeks_etyki.pdf), consisting Legal Department in consultation with the Audit team) of the Principles, which have been defined and grouped and the Anti-Corruption Policy. in four categories:

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103-2, 103-3 SUSTAINABLE CITIES AND COMMUNITIES FAIR MARKET COMPETITION 206-1 Goal 11. Make cities and human settlements 11.4 Strengthen efforts to protect and Kompania Piwowarska conducts market activities KEY EFFECTIVENESS inclusive, safe, resilient and sustainable safeguard the world’s cultural and natural in compliance with all norms and public decency, INDICATORS: heritage applies the highest ethical standards based on Kompania Piwowarska has an impact on 11.7 By 2030, provide universal access to developed values, does not employ any unlawful achieving the following Goal 11 targets: safe, inclusive and accessible, green and anti-competitive practices. 11.3 By 2030, enhance inclusive and public spaces, in particular for women and sustainable urbanization and capacity for children, older persons and persons with IN 2018 KOMPANIA PIWOWARSKA WAS NOT A PARTY TO ANY LAW participatory, integrated and sustainable disabilities ACTION REGARDING ANTI-COMPETIVE human settlement planning and management BEHAVIOUR, SUCH AS VIOLATING ANTITRUST in all countries

CHANGING POLISH whose goal is to support the release activities connecting residents and KP RECEIVED THE ETHICAL COMPANY OF 2018 TITLE AS THE ONLY FOOD CITIES FOR THE of positive energy of residents and to innovative solutions to improve the INDUSTRY COMPANY AMONG 23 BETTER change Polish cities for the better. quality of life in the city in three grant RECIPIENTS OF THE TITLE IN A COMPETITION ORGANIZED BY THE categories: “PULS BIZNESU” NEWSPAPER UNDER Third edition of LECHSTARTER In 2018, we carried out the programme ■■ Academy of grants dedicated to THE HONORARY PATRONAGE OF THE For us, the city is a space for MINISTRY OF ENTREPRENEURSHIP in partnership with the Urban Forms individuals AND TECHNOLOGY. THE TITLE WAS developing interpersonal relationships foundation. Associations, foundations ■■ Grants dedicated to organisations AWARDED FOR THE SECOND TIME IN and expressing creativity. That is A ROW. and individuals could submit ideas ■■ Micro-grants dedicated to non- why we created LECHSTARTER - the for new places of social integration, governmental organizations Lech Premium brand programme,

KEY EFFECTIVENESS INDICATORS:

1 MILLION OVER 300 OVER 460,000 ZLOTY NUMBER OF SUBMITTED PROJECTS, NUMBER OF VOTES BY INTERNET VALUE OF AWARDED OUT OF WHICH THE JURY CHOSE THE USERS IN COUNTRYWIDE POLL GRANTS 48 MOST INTERESTING ONES

Examples of projects subsidised in 2018: ■■ Drive-in cinema in Włocławek ■■ Revitalisation of Gwoździarnia – meeting and ■■ Lech graduation tower in Wolbrom workshop spot in Włocławek ■■ Mobile furniture for the city of Poznań ■■ Cultural Golub-Dobrzyń – revitalisation of the city’s ■■ “Pociąg do miasta” – a series of street performances main park in Gdynia

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BISON PROTECTION SUPPORTING EMPLOYEE In 2018, our volunteers delivered ■■ Association for Children and Youth IN THE BIAŁOWIEŻA INITIATIVES AND VOLUNTEERING support to: with Cerebral Palsy NATIONAL PARK EVENTS THROUGH ■■ Residents of a tenement house ■■ Animal shelter in Tomaryny SPONSORING Our employees willingly share their in Poznań’s Dębiec, which was ■■ Municipal Animal Shelter in Tychy For many years now the Żubr brand All fans of sport are connected by time, skills and knowledge with those destroyed in an explosion has been supporting the activities of sports emotions and Tyskie. This is why in need, and we also allow them to do ■■ Volunteer Fire Brigade and the Białowieża National Park for the the brand joined forces with the Polish such activities during work, supporting residents of the Kołobrzeg protection of the bison. According to Football Association (PZPN), the Polish them financially and organisationally. municipal borough the BPN data from March, after the last Volleyball Federation (PZPS), and the Actions for the benefit of local ■■ Palium Hospice from Poznań counting in the end of 2017 654 bisons Handball Federation in Poland (ZPRP). communities, undertaken as part of the ■■ Women’s Rights Centre in Gdańsk lived in the Polish part of the Białowieża The Volunteer Company programme, ■■ Animal shelter in Poznań Forest (over ninety more females than are included in the agenda of sales ■■ Nursing Home in Poznań’s Ugory males). There are 58 more bisons than a force working meetings. Most of such district year ago. projects are initiated by the employees ■■ Animal shelter in Bialystok themselves.

The Lech brand, on the other hand, supports music festivals such as Pol’and’Rock, Audioriver and OFF Festival, and is the main sponsor of Lech Poznań footballers.

Pilsner Urquell and Kozel, two flagship Czech beer brands, are present with their zones at selected events throughout Poland.

Following the signing of long-term cooperation agreements Tyskie became an official draft beer at all football, volleyball and handball matches.

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NOBLE BOX on Move” [“Postaw na ruch”]. organization to which our company RESPONSIBLE CONSUMPTION AND PRODUCTION Last year, 1,656 our employees Employees who join the programme makes a donation as a reward for and 188 people from outside the can connect their mobile sports their victory. Last year those were Goal 12. Ensure sustainable consumption 12.5 By 2030, substantially reduce waste company joined the process of applications to the program’s online organisations supporting people and production patterns generation through prevention, reduction, preparing Christmas gift boxes platform. In this way, they can with disabilities and a hospice. recycling and reuse for people and families in need. monitor their activity, compete and Kompania Piwowarska has an impact on 12.6 Encourage companies, especially large Their work, donations and our check how many kilometres they achieving the following Goal 12 targets: and transnational companies, to adopt company’s financial support allowed should cover together to achieve 12.4 By 2020, achieve the environmentally sustainable practices and to integrate us to prepare parcels containing the programme goal, which is the sound management of chemicals and sustainability information into their reporting household appliances and furniture, donation of Kompania Piwowarska all wastes throughout their life cycle, in cycle clothes, medicines, food and for a person looked after by the accordance with agreed international cleaning products for 57 families. Poland Business Run Foundation. frameworks, and significantly reduce their The total value of delivered parcels In 2018, our logged employees release to air, water and soil in order to amounted to nearly 250 thousand (390 people) easily reached the minimize their adverse impacts on human health and the environment zloty, of which 165 thousand zloty threshold of 300,000 kilometres What matters required for donation. The total came from our company funds, and the most is to the remaining amount was donated distance they covered was 366,386 ... get moving. by employees, their friends and kilometres. Walking, 103-1, 103-2 packaging waste management system. The family members who joined the PACKAGING AND WASTE brewing industry is currently the only one initiative. TYSKIE CUP running, cycling MANAGEMENT in Poland that uses returnable packaging on Tyskie Cup is a football tournament - any form of such a large scale, which perfectly fits into VOLUNTEERING for employees organised in 2018 activity counts. Packaging and its recycling SPORTS ACTIVITY the concepts of reusing products, and thus for the eighth time. It is yet another We are constantly improving the We encourage our employees to do reducing the impact on natural environment. activity that we combine with the management of by-products and waste sports while helping others. Our key idea of volunteering. The three generated in the production process - we sports activity programme is “Focus A RETURNABLE BOTTLE OF winning teams can indicate any are constantly looking for new solutions, BEER CAN BE FILLED UP TO 20 also engaging our suppliers in the process. TIMES BEFORE RECYCLING In the reported period, we continued to optimise packaging patterns. After reducing Barrels, so-called kegs, used to sell draft KEY EFFECTIVENESS the weight of 500 ml cans, we conducted beer in food service industry, are the second INDICATORS: a number of analyses and tests for 550 ml type of returnable packaging in which we cans, which resulted in the implementation sell our beer. Our company has practically of changes in 2018. We cooperated thous. thous. always used those solutions on a huge scale km zloty with Interseroh, a packaging recovery 300 15 3 - in 2018 more than half of our beer reached organisation, in 2018 in order to meet legal IN A TOTAL OF 13 OVER 300,000 KM WERE DONATED TYSKIE CUP consumers in returnable packaging. VOLUNTEERING PROJECTS WERE COVERED TO BUY A WINNERS DONATED requirements for the recycling of packaging (DATA INCLUDES “NOBLE “IN A SPORTS BASKETBALL GRANTS TO LOCAL waste introduced to the market. BOX”): WAY” WHEELCHAIR FOR NGOS A PERSON UNDER • 61% OF OUR COMPANY CARE OF THE EMPLOYEES WERE POLAND BUSINESS Moreover, as a member of the The Union of INVOLVED RUN FOUNDATION Packaging Industry and Packed Products • 4,076 HOURS OF WORK WERE VOLUNTARY Employers EKO-PAK, we actively participated (BOTH DURING in the development of proposals for an WORKING HOURS AND OUTSIDE OF THEM) optimal, fair and EU legislation-compliant

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Eco-zone at Pol’and’Rock festival and then sent them for recycling. In Waste brought by Pol’and’Rock 2018 For years, we have been cooperating addition, we awarded the most eco- participants to the Eco Zone we set up: with the organisers of the Pol’and’Rock conscious festival participants with ■■ 1,681 kg of plastic cups PACKAGING TYPES OF BEERS SOLD IN 2018 music festival (formerly Przystanek “Leszek” currency which could be ■■ 1,083 kg of aluminium cans Woodstock) and actively promoting exchanged, among others, for eco- ■■ 6,476 kg of other waste selective waste collection. In 2018, as pillows made from advertising banners. part of the Eco Zone, we prepared a competition for participants to collect segregated recyclables - cans and plastic cups. People who collected the 46% 46% 4% 4% most waste by weight in each category won four eco-scooters. We segregated RETURNABLE CANS KEGS NON- raw materials brought to the Eco Zone BOTTLES RETURNABLE We allocated proceeds from the sale BOTTLES of recyclable materials collected during the Pol’and’Rock festival for planting city greenery in Kostrzyn nad Odrą, where the festival takes place.

103-3, 204-1

KEY EFFECTIVENESS INDICATORS: 100% 100% OF BOTTLES AND CANS OF BY-PRODUCTS OF WERE PURCHASED IN BEER PRODUCTION IS PLANTS OPERATING IN USED IN AGRICULTURE – POLAND TO DIRECTLY FEED FARM ANIMALS OR TO PREPARE FEED MIXTURES

99.65% OF WASTE AND BY- WE REDUCED THE WEIGHT PRODUCTS WERE OF 550 ML CANS, WHICH RECOVERED (INCLUDING RESULTS IN REDUCED RECYCLING) USE OF METAL FOR CAN MANUFACTURING AND LOWER GREENHOUSE GAS EMISSIONS

5 6 5 7 SUSTAINABLE DEVELOPMENT REPORT 2018

CLIMATE ACTION

Goal 13. Take urgent action to combat Kompania Piwowarska has an impact on climate change and its impacts achieving the following Goal 13 target: 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, 307-1

impact reduction and early warning KEY EFFECTIVENESS INDICATORS: 32.55% GROWTH AND NATU- The Environmental Management Operational control areas covered by As part of operational control we also OF PURCHASE DOCUMENTS RECEIVED IN ELECTRONICALLY (UP RAL ENVIRONMENT System supervision are: supervise subcontractors to ensure they BY 6.55% FROM 2017) 102-11 The Environmental Management ■■ water intake meet our environmental requirements. We continue to reduce our impact System, based on a register of ■■ wastewater release on the natural environment - so significant environmental aspects, ■■ use of heat and electricity 103-2, 103-3 that it can meet the needs of is an element of the Integrated Risk ■■ emission of pollutants into the air An external law firm monitors 0 present and future generations. Management System. In the process ■■ noise current requirements and changes NO FINES WERE IMPOSED ON of identification and assessment of ■ waste generation We focus in particular on reducing ■ in environmental law, which are then KOMPANIA PIWOWARSKA FOR water consumption and pollution those aspects we take into account interpreted by the environmental FAILING TO COMPLY WITH ENVIRONMENTAL REGULATIONS emissions, and processing waste into the activities of all our breweries protection and safety systems managers raw materials. Thanks to applying and warehouses. In 2018, we focused in terms of our business operations. the latest technological solutions we primarily on the optimization of Compliance with the identified meet all environmental standards, processes affecting the natural requirements is periodically evaluated and our operations are completely environment, including: during internal audits and during the safe for the communities around ■■ replacement of devices with less assessment of compliance with the law, our plants. In addition, we have energy-consuming ones, carried out at least once a year. already received 32.55% of purchase ■■ reducing the consumption documents electronically, which of chemical substances and is an increase of 6.55%. Electronic mixtures in CIP washing invoicing, apart from ecological processes. benefits, brings financial savings and The second key element of the streamlines document circulation. system is operational control, We are constantly expanding the enabling the implementation of scope of this solution, focusing on our environmental policy while regular suppliers who generate at maintaining safe production. least 15 invoices per year.

5 8 5 9 SUSTAINABLE DEVELOPMENT REPORT 2018

CLIMATE PROTECTION COMBATTING CORRUPTION SOLUTIONS 103-1, 103-2, 103-3 Goal 16: Promote peaceful and inclusive Kompania Piwowarska has an impact on

The energy we use is a source of societies for sustainable development, achieving the following Goal 16 target: carbon dioxide emissions into the provide access to justice for all and build 16.5 Substantially reduce corruption and atmosphere. Our efforts to reduce effective, accountable and inclusive bribery in all their forms emission levels focus on reducing institutions at all levels energy consumption in production. Packaging weight optimization also contributes to reducing emissions.

KEY EFFECTIVENESS INDICATORS: ANTI-CORRUPTION 205-3 POLICY CO2 EMISSIONS FROM Every year, corruption risk is also BOILER PLANTS 205-1, 205-2, 103-1, 103-2, 103-3 analysed as part of the risk management 305-1 6.63 kg The Anti-Corruption Policy applies to process. The team consisting of In 2018, 27,827 tonnes of CO2 were all employees of Kompania Piwowarska, employees of the Audit Department CO2 EMISSION PER HL OF BEER emitted from boiler plants in Poznań regardless of the place and mode of and the Legal Department thoroughly and Tychy breweries. This size employment. It also applies to contract analyses any potential abuse in this area does not take into account fugitive employees. The document is publicly and takes necessary actions. emissions, i.e. emissions from cars, 50.3% available on our Infonet and its content forklift trucks and technologies SHARE OF RETURNABLE presented during introductory training as well as emissions from biogas PACKAGING (BOTTLES AND KEGS) for new employees. (according to the guidelines on We regularly communicate to employees 205-3 emissions trading). the content of key documents: KEY EFFECTIVENESS INDICATOR: 99.65% ■■ Code of Ethics PROPORTION OF BY-PRODUCTS ■■ Anti-corruption Policy AND WASTE GENERATED DURING ■■ Policy to combat violence, mobbing, THE MANUFACTURING PROCESS THAT WERE RECOVERED discrimination and harassment in the 0 (INCLUDING RECYCLING) workplace NO CONFIRMED CASES OF ■■ Policy for reporting violations CORRUPTION ACTIVITIES WERE REPORTED 98% AT LEAST 98% OF PURCHASED FRIDGES HAVE A HFC-FREE COOLING SYSTEM

6The emission for the brewery in Białystok is calculated as: [steam net amount * emissivity coefficient given by the combined heat and power plant + electricity * emissivity for Poland + amount of gas consumed by forklifts * emissivity ratio for LPG]. Emission for the brewery in Poznań and Tychy is calculated as: [gas volume * emissivity for a given gas + electricity * emissivity for Poland + gas used by forklifts * emissivity ratio for LPG]. The amount of electricity supplied to the breweries includes transmission losses on our infrastructure elements.

6 0 6 1 KOMPANIA PIWOWARSKA’S COMMITMENTS FOR 2019

Ensure healthy lives and promote well-being Achieve gender equality and empower all for all at all ages women and girls ■■ We will increase the number of people ■■ We will continue to take care of ensure involved in our programmes promoting that men and women are equally paid responsible alcohol consumption to in our company. We assume that the PARTNERSHIP FOR COOPERATION 300,000. We want the information difference in remuneration for both sexes promoting responsible alcohol in the same positions, with the same

Goal 17: Strengthen the means of implementation and revitalize the global partnership for consumption to reach 5 million people. seniority, etc. cannot exceed 5%. sustainable development ■■ Until the end of 2019 the packaging of all Kompania Piwowarska beer will feature full information on ingredients and energy Reduce inequality within and among value. countries ■■ We will increase significantly, compared ■■ We will work on improving our standards COOPERATION WITH THE COOPERATION OF THE RESPONSIBLE BUSINESS INDUSTRY REPRESENTATIVES to 2018, the share of non-alcoholic beer and procedures for complying with the FORUM (FOB) IN POLAND in Kompania Piwowarska’s portfolio, rules of the Code of Ethics adopted by introducing new products and flavour the company. varieties to the market.

Ensure availability and sustainable

Our company is one of the Strategic Union Of Brewing Industry Employers Promote sustained, inclusive and sustainable management of water and sanitation for all Partners of the Responsible Business Forum, - Polish Breweries economic growth, full and productive ■■ We will keep our great result in terms of i.e. companies that can boast specific We are one of the companies that formed employment and decent work for all water consumption, i.e. we will use 2.64 achievements in the field of corporate social “Polish Breweries” 20 years ago and have ■■ We will take measures to reduce the risk hl of water to brew 1 hl of beer. responsibility, want to share their experience remained an active member since then. of occurrence of workplace accidents and with others, and upon joining the group of During this period the organisation carried promote a healthy lifestyle among our the Forum’s Strategic Partners, commit to out a number of actions and programmes employees. We will organise 18 events Make cities and human settlements supporting the long-term development of that were aimed at, among others, preventing for them as part of the “Focus on Health” inclusive, safe, resilient and sustainable this idea in Poland. irresponsible alcohol consumption in Poland. program and the next edition of the Tyskie ■■ We will organize the 4th edition of the Cup football tournament LECHSTARTER programme, donating ■■ We will encourage our employees to stay again 1 million zloty for the development physically active as part of the “Focus on of initiatives serving the inhabitants of Move” programme so that by the end of Polish cities - in three cities, selected by the year they have covered a total of 390 voting, we will organise meeting zones thousand kilometres. Why this particular that combine: leisure, culture, art, modern number? The Union of Packaging Industry and Packed and functional design. Products Employers EKO-PAK Because Tyskie Książęce Breweries ■■ Żubr beer, together with the organisation We are one of the companies that founded celebrate their 390th anniversary in 2019! WWF, will be saving lives of animal EKO-PAK and join in the Union’s current species at risk in Poland. The initiative, activities, focused on developing solutions in the apart from the transfer of funds for the field of waste packaging management system in protection of endangered species, involves Poland. replacing an image of the bison, perfectly known to Poles, on the packaging of beer with images of animals that the king of the forest cares for. ■■ We will create conditions in our company for at least 60% of employees to be able to join in volunteering projects.

6 2 6 3 SUSTAINABLE DEVELOPMENT REPORT 2018

ABOUT THE REPORT

6 4 6 5 SUSTAINABLE DEVELOPMENT REPORT 2018

102-3, 102-10, 102-47, 102-48, 102-49, 102-50, 102-44, 102-46, 103-1 102-51, 102-52, 102-54 ENGAGING STAKEHOLDERS

We publish sustainability reports every year, starting Representatives of the company as well as external from 2009 – this one is the eleventh in a row. This stakeholders were involved in the process of developing 102-53 the report. From March 13 to April 10, 2019, the report has been prepared in accordance with the The survey addressed to stakeholders GRI Standards: Core option. It is the international independent consultancy Go Responsible conducted a aimed at defining relevant reporting standard for non-financial reporting. No corrections materiality analysis - a survey of expectations of topics was prepared based on the UN of information included in previous reports have representatives of the main groups of the company’s been indicated. The report has not been subjected to internal and external stakeholders towards the content Sustainable Development Goals. external verification. This report, like the previous one of the report, based on an online survey. Kompania for 2017, covers the entire calendar year, i.e. the period Piwowarska actively supports the achievement of Goals, from January 1 to December 31, 2018. The scope of which is why the survey and this report were based the report covers all company units: the Management on selected of them, particularly important from the Board’s office in Warsaw, breweries in Tychy, Białystok point of view of the company’s operations. In total, and Poznań – the latter also the location of the anonymous recommendations from 30 people were company’s headquarters, 3 distribution centers and 12 collected, including Kompania Piwowarska’s business sales districts. Data on water, energy and emissions has partners, members of local government, local officials, been shown only for manufacturing plants. representatives of control institutions, NGO activists, journalists and employees.

KOMPANIA PIWOWARSKA’S MATERIALITY MATRIX 2018

5

energy 101

research and The Report was developed in line with the 10 GRI development 4.5 principles regarding:

OHS ■■ defining content (materiality, sustainability non-discrimnation context, stakeholder inclusiveness, responsible wastewater consumption completeness) and other preventing 4 waste food waste ■■ quality of the presented data (balance, water climate change reliability, comparability, accuracy, timeliness, strategy supplier’s relations between evaluation, clarity). employees and social issues management relations with SME 3.5 diversity taxes and equal indirect raw materials / opportunities economic supplies impact

3 taxes

creating evaluation of jobs training and issues related If you have any questions regarding this GRZEGORZ ADAMSKI economic education to human PUBLIC AFFAIRS AND SUSTAINABILITY TOPICS SIGNIFICANT FOR STAKEHOLDERS SIGNIFICANT TOPICS performance freedom of rights report, please contact me: union MANAGER 2.5 [email protected] 3 3.5 4 4.5 5 TOPICS SIGNIFICANT FOR THE COMPANY

6 6 6 7 SUSTAINABLE DEVELOPMENT REPORT 2018

TABLES WITH GRI NUMERICAL INDICATORS 5. Employees covered by the collective agreement 405-1 a) Total

1. Employment by age broken down by gender* 2017* 2018* Number of employees 2,760 2,726 WOMEN MEN TOTAL Employees covered by the <30 137 286 423 2,245 (81.3%) 2,218 (81.4%) collective agreement 30-50 456 1,394 1,850 *Status on the last day of the calendar year >50 105 348 453

Total 698 2,028 2,726 b) By gender

*Status on the last day of the calendar year 2017* 2018*

WOMEN MEN WOMEN MEN 2. Managerial staff broken down by gender* Number of employees 638 2,122 698 2,028 WOMEN MEN Employees covered Board 1 5 by the collective 477 (75%) 1,768 (83%) 534 (77%) 1,684 (83%) Directors 11 37 agreement

Managers 152 301 *Status on the last day of the calendar year

*Status on the last day of the calendar yearo 6. Employees by type of employment

3. Share of women in departments [%] 2017* 2018*

2017 2018 Employment contracts 2,760 2,726 Corporate affairs 71.4 83.3 Including part-time contracts (5 women, 3 6 Financial department 70.0 74.3 1 man) Marketing 63.0 71.1 Other forms of HR department 69.4 66.7 employment

Procurement Temporary work 57.7 59.4 55 5 department agency employees Contract for provision Strategy planning 33.3 42.1 31 29 of services Head Office 20.0 28.6 *Status on the last day of the calendar year Production 25.0 25.1

Sales 18.3 18.1 7. Employees with disability as of end 2018*

Supply chain 11.7 14.7 DEGREE OF DISABILITY NUMBER OF EMPLOYEES IT department 14.3 14.3 Significant 1

*Status on the last day of the calendar year Moderate 4

Light 5 4. Employees by gender [%] *Status on the last day of the calendar year 2017 2018 Men 76.9 74.4

Women 23.1 25.6

*Status on the last day of the calendar year

6 8 6 9 SUSTAINABLE DEVELOPMENT REPORT 2018

8. Employment by region, broken down by gender* 11. Type of employment, broken down by gender* 102-8 WOMEN MEN TOTAL Contract for an WOMEN MEN TOTAL 604 1,813 2,417 indefinite period Production Technology and 24 15 39 Administration Replacement contract for an 4 6 10 Białystok Brewery 28 97 125 indefinite period Poznań Brewery 86 334 420 Other contracts 90 209 299 Tychy Brewery 93 242 335 Total 698 2,028 2,726 Head Office and Marketing 225 135 360 *Status on the last day of the calendar year departments

Sales and Distribution 242 1,205 1,447 12. Ratio of lowest-level employee pay to minimum pay (2,100 zloty), broken down by gender Total 698 2,028 2,726 202-1

*Status on the last day of the calendar year 2018 Men 186% 9. Employment by pay grade, broken down by gender* Women 186% WOMEN MEN TOTAL Other employees 243 907 1,150 13. Water consumption Specialists 291 777 1,068 303-1 Managers 152 301 453 2016 2017 2018 Directors and Board 12 43 55 Total water consumption 38,424,676 35,767,443 37,314,889 Total 698 2,028 2,726 [hl]

*Status on the last day of the calendar year a. Municipal water [hl] 27,017,966 25,051,633 26,142,909

b. Water from own 11,406,710 10,715,810 11,171.980 10. Employment by pay grade and age* underground intakes [hl]

<30 30-50 >50 Beer production [hl] 14,484,722 13,581,850 14,137,908 Other employees 198 654 298

Specialists 195 760 113

Managers 30 390 33

Directors and Board 0 46 9

Total 423 1,850 453

*Status on the last day of the calendar year

7 0 7 1 SUSTAINABLE DEVELOPMENT REPORT 2018

14. Total volume of wastewater generated by breweries and wastewater indices As a result of the above-mentioned accidents, the injured persons were on sick leaves for a total of 305 days. 306-1 Accident Severity Index (DISR – Disabling Incident Severity Rate) amounted to 13.45. It was calculated according to the formula: 2016 2017 2018 Volume of total days of absence due to accidents in 12 wastewater 2,274,811 2,152,715 2,238,495 3 months * 200,000 generated [m ] DISRF=

Poznań Brewery 1,57 1,60 1,66 total hours worked in 12 months (volume of wastewater per hl of 1.57 1.60 1.66 In 2018, there was only one accident involving an external company employee. It took place in Tychy. The cause was beer produced) a slip and it resulted in a slight injury. Kompania Piwowarska did not participate in the post-accident proceedings. Białystok Brewery 1,54 1,52 1,43

(volume of 16. Workplace accidents wastewater per hl of 1.93 1.79 1.81 HEAD OFFICE beer produced) PRODUCTION SUPPLY CHAIN SALES & MARKETING Tychy Brewery

(volume of wastewater per hl of 1.54 1.52 1.43 beer produced) Białystok Poznań Tychy Technology West Central South Planning North South West Other Use of water for beer production [hl of 2.68 2.63 2.64 0 0 1 0 0 0 2 0 2 4 0 1 0 water/hl of beer]

17. Days of sick leaves due to accidents 15. Accidents HEAD OFFICE PRODUCTION SUPPLY CHAIN SALES & MARKETING 403-2

Causes of accidents:

■■ Collisions (2 accidents) ■■ Falls (1 accident) ■■ Cut by a sharp tool ■■ Manual transport work ■■ Hits (2 accidents) (1 accident)

(2 accidents) ■■ Slips / trips Białystok Poznań Tychy Technology West Central South Planning North South West Other (2 accidents) 0 0 0 0 0 0 21 0 19 183 0 77 5*

* Sick leaves continued from previous year There were 9 men and 1 woman among the injured persons, and 7 of them were sales employees. Two accidents occurred in the warehouses and one at the Tychy brewery. 18. Weight of by-products and waste generated in the production process [Mg] Two out of ten accidents did not result in sick leaves. 306-2 The Accident Frequency Index (DIFR - Disabling Incident Frequency Rate),

taking into account only 10 accidents ended with sick leave (the so-called DI), 2016 2017 2018 amounted to 0.35. It was calculated according to the formula: By-products (draff, malt powder, secondary 277,729 262,350 283,339 yeast)

total DI in 12 months * 200,000 Other waste (including broken glass, paper DIFR= nad cardboard, aluminium, sheet metal, 23,507 22,221 20,218 total hours worked in 12 months plastic, wood, infusorial earth, used labels), excluding municipal waste

Hazardous waste 30 28 28,4

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19. Volume and percentage of recovered packaging waste by packaging categories 21. Use of energy 301-1, 301-3 302-1

2016 2017 2018 2016 2017 2018 Input [kg] 17,242,311 18,616,761 19,873,426 Production volume (hl) 14,484,722 13,581,850 14,137,908 Use of electric energy [kWh] 80,960,550 75,899,548 79,437,257 Recycled [kg] 8,793,579 9,494,548 10,135,447 Index [kWh/hl] 5.59 5.59 5.62

Aluminium % Recovered 51 51 51 Use of heat energy from non-renewable 693,612 639,822 634,157 Input [kg] 3,425,011 2,829,020 3,190,834 sources [GJ]

Recycled [kg] 1,746,755 1,442,800 1,627,325 Use of heat energy from renewable sources 34,697 30,774 30,806 metal Sheet Sheet [GJ] % Recovered 51 51 51 Index [MJ/hl] 50.3 49.4 47.03 Input [kg] 9,161,070 8,759,690 6,489,209

Recycled [kg] 1,465,771 1,401,550 1,038,273 pallets Wooden Wooden % Recovered 16 16 16

Input [kg] 7,596,499 7,189,474 7,447,419

Recycled [kg] 4,633,864 4,385,579 4,542,925 Paper and and Paper cardboard % Recovered 61 61 61

Input [kg] 70,200,999 80,769,739 76,880,252

Recycled [kg] 48,822,610 49,269,541 46,896,953 Glass % Recovered 61 61 61

Input [kg] 3,678,390 3,487,066 3,432,773

Recycled [kg] 864,422 819,460 806,701 Plastic % Recovered 23.5 23.5 23.5

20. CO2 emissions from boiler plants at Poznań and Tychy breweries [Mg] 305-5

CO2 EMISSIONS 2013 33,109

2014 29,688

2015 27,429

2016 28,471

2017 27,073

2018 27,827

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For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references for Disclosures 102-40 to 102-49 align with appropriate sections in the body of the report. The service was performed on the Polish version of the report. GRI CONTENT INDEX DISCLOSURE DISCLOSURE TITLE REPORTING PAGE NUMBER DEGREE 102-55

DISCLOSURE DISCLOSURE TITLE REPORTING PAGE GRI 102-46 Defining report content and topic Boundaries Full 66 NUMBER DEGREE GRI 102-47 List of material topics Full 66 GRI 101 Foundation 2016 GRI 102-48 Restatements of information Full 66 GRI 101 Foundation Full 67 GRI 102-49 Changes in reporting Full 66 GRI 102 General Disclosures 2016 GRI 102-50 Reporting period Full 66 GRI 102-1 Name of the organisation Full 8 GRI 102-51 Date of most recent report Full 66 GRI 102-2 Activities, brands, products, and services Full 11 GRI 102-52 Reporting cycle Full 66 GRI 102-3 Location of headquarters Full 9, 66 GRI 102-53 Contact point for questions regarding the report Full 67 GRI 102-4 Location of operations Full 9 GRI 102-54 Claims of reporting in accordance with the GRI Full GRI 102-5 Ownership and legal form Full 8 Standards

GRI 102-6 Markets served Full 9 GRI 102-55 GRI content index Full 76

GRI 102-7 Scale of the organisation Full 9 GRI 102-56 External assurance Full 66

GRI 102-8 Information on employees and other workers Full 9 Topic-specific disclosures GRI 102-9 Supply chain Full 46 Economic topics

GRI 102-10 Significant changes to the organization and its Full 66 Economic performance supply chain GRI 103 Management Approach 2016 GRI 102-11 Precautionary Principle or approach Full 31 GRI 103-1 Explanation of the material topic and its Full 14, 23 GRI 102-12 External initiatives Full 36 Boundary GRI 102-13 Membership of associations Full 19 GRI 103-2 The management approach and its components Full 14, 23 GRI 102-14 Statement from senior decision-maker Full 4 GRI 103-3 Evaluation of the management approach Full 14, 23 GRI 102-15 Key impacts, risks, and opportunities Full 16 Anti-corruption policy GRI 102-16 Values, principles, standards, and norms of Full 48 GRI 103 Management Approach 2016 behaviour GRI 103-1 Explanation of the material topic and its Full 61 GRI 102-18 Governance structure Full 10 Boundary GRI 102-40 List of stakeholder groups Full 17 GRI 103-2 The management approach and its components Full 61 GRI 102-41 Collective bargaining agreements Full 36 GRI 103-3 Evaluation of the management approach Full 61 GRI 102-42 Identifying and selecting stakeholders Full 17

GRI 102-43 Approach to stakeholder engagement Full 17

GRI 102-44 Key topics and concerns raised Full 66

GRI 102-45 Entities included in the consolidated financial Full Kompania statements Piwowarska SA owns subsidiaries, which do not run any operational activities

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DISCLOSURE DISCLOSURE TITLE REPORTING PAGE DISCLOSURE DISCLOSURE TITLE REPORTING PAGE NUMBER DEGREE NUMBER DEGREE GRI 205 Anti-corruption 2016 GRI 303 Water 2016

GRI 205-1 Operations assessed for risks related to Full 61 GRI 303-1 Water withdrawal by source Full 37, 71 corruption GRI 303-2 Water sources significantly affected by Full 37 GRI 205-2 Communication and training about anti- Full 61 withdrawal of water corruption policies and procedures GRI 306 Effluents and Waste 2016 GRI 205-3 Confirmed incidents of corruption and actions 61 GRI 306-1 Water discharge by quality and destination Partial 38, 72 taken

GRI 206 Anti-competitive Behavior 2016 Waste

GRI 206-1 Legal actions for anti-competitive behavior, anti- Full 50 GRI 103 Management Approach 2016 trust, and monopoly practices GRI 103-1 Explanation of the material topic and its Full 55 Boundary Environmental topics GRI 103-2 The management approach and its components Full 55 Energy GRI 103-3 Evaluation of the management approach Full 56 GRI 103 Management Approach 2016 GRI 306 Effluents and Waste 2016 GRI 103-1 Explanation of the material topic and its Full 39 Boundary GRI 306-2 Waste by type and disposal method Full 74

GRI 103-2 The management approach and its components Full 39 GRI 301 Materials 2016

GRI 103-3 Evaluation of the management approach Full 39 GRI 301-3 Reclaimed products and their packaging Full 74 materials GRI 302 Energy 2016 GRI 307 Environmental Compliance 2016 GRI 302-1 Energy consumption within the organisation Full 75 GRI 307-1 Non-compliance with environmental laws and Full 59 Emissions regulations GRI 103 Management Approach 2016 Supplies and raw materials

GRI 103-1 Explanation of the material topic and its Full 60 GRI 103 Management Approach 2016 Boundary GRI 103-1 Explanation of the material topic and its Full 46 GRI 103-2 The management approach and its components Full 60 Boundary

GRI 103-3 Evaluation of the management approach Full 60 GRI 103-2 The management approach and its components Full 46

GRI 305 Emissions 2016 GRI 103-3 Evaluation of the management approach Full 46

GRI 305-1 Direct (Scope 1) GHG emissions Partial 60, 75 GRI 301 Materials 2016

GRI 305-5 Reduction of GHG emissions Partial 75 GRI 301-1 Materials used by weight or volume Full 74 Water Social topics GRI 103 Management Approach 2016 Employment conditions and employee development GRI 103-1 Explanation of the material topic and its Full 37 GRI 103 Management Approach 2016 Boundary GRI 103-1 Explanation of the material topic and its Full 33, 34, 43 GRI 103-2 The management approach and its components Full 37 Boundary GRI 103-3 Evaluation of the management approach Full 37 GRI 103-2 The management approach and its components Full 33, 34, 43

GRI 103-3 Evaluation of the management approach Full 33, 34, 43

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DISCLOSURE DISCLOSURE TITLE REPORTING PAGE DISCLOSURE DISCLOSURE TITLE REPORTING PAGE NUMBER DEGREE NUMBER DEGREE GRI 202 Market Presence 2016 GRI 412 Human Rights Assessment 2016

GRI 202-1 Ratios of standard entry level wage by gender Full 71 GRI 412-3 Significant investment agreements and Full 46 compared to local minimum wage contracts that include human rights clauses or that underwent human rights screening GRI 401 Employment 2016

GRI 401-2 Benefits provided to full-time employees that Full 42 Society and relations with suppliers are not provided to temporary or part-time GRI 103 Management Approach 2016 employees GRI 103-1 Explanation of the material topic and its Full 46 Safety, work conditions and health promotion Boundary

GRI 103 Management Approach 2016 GRI 103-2 The management approach and its components Full 46

GRI 103-1 Explanation of the material topic and its Full 34, 41 GRI 103-3 Evaluation of the management approach Full 46 Boundary GRI 203 Indirect Economic Impacts 2016 GRI 103-2 The management approach and its components Full 34, 41 GRI 203-2 Significant indirect economic impacts Full 44 GRI 103-3 Evaluation of the management approach Full 34, 41 GRI 204 Procurement Practices 2016 GRI 403 Occupational Health and Safety 2016 GRI 204-1 Proportion of spending on local suppliers Full 56 GRI 403-1 Occupational health and safety management Full 41 GRI 413 Local Communities 2016 system GRI 413-2 Operations with significant actual and potential Full 44 GRI 403-2 Types of injury and rates of injury, occupational Full 72-73 negative impacts on local communities diseases, lost days, and absenteeism, and number of work-related fatalities Responsibility for product and packaging, market competition

GRI 404 Training and Education 2016 GRI 103 Management Approach 2016

GRI 404-1 Average hours of training per year per employee Full 34 GRI 103-1 Explanation of the material topic and its Full 32 GRI 404-2 Programs for upgrading employee skills and Full 34 Boundary transition assistance programs GRI 103-2 The management approach and its components Full 32

GRI 405 Diversity and Equal Opportunity 2016 GRI 103-3 Evaluation of the management approach Full 32

GRI 405-1 Diversity of governance bodies and employees Full 68-71 GRI 416 Customer Health and Safety 2016

GRI 405-2 Ratio of basic salary and remuneration of Partial 36 GRI 416-1 Assessment of the health and safety impacts of Full 16 women to men product and service categories

GRI 406 Non-discrimination 2016 GRI 417 Marketing and labeling 2016

GRI 406-1 Incidents of discrimination and corrective Full 49 GRI 417-1 Requirements for product and service Full 32 actions taken information and labeling

Human rights GRI 417-2 Incidents of non-compliance concerning product Full 32 and service information and labeling GRI 103 Management Approach 2016 GRI 417-3 Incidents of non-compliance concerning Full 32 GRI 103-1 Explanation of the material topic and its Full 48 marketing communications Boundary

GRI 103-2 The management approach and its components Full 48

GRI 103-3 Evaluation of the management approach Full 48

8 0 8 1