Lion Sustainability Report 2020 Contents

About this report & Key highlights of the year 1 A message from our CEO 2 A message from our Group General Counsel and External Relations Director 3 Our business 4 The issues that matter – Materiality 5 Our sustainability approach 6 Our sustainability performance 7 Community 8 Safety, health & wellbeing 9 Supporting our communities 11 Inclusion & diversity 14 Environment 16 Packaging waste 17 Climate change 19 Water security & quality 21 Responsibility 23 Responsible consumption 24 Sustainable procurement & human rights 26 Transparent labelling 28 Contact us 29 About this report

The information in this report covers Lion’s operations in Australasia primarily and performance data is limited to and New Zealand for the financial year Key highlights of the year: beginning 1 January 2020 through to 31 December 2020, unless otherwise stated. Throughout the report we also introduce more recent case studies from our Lion Little World Beverages global network across the United States and the United Kingdom*.

This financial year is referred to as This report is produced in accordance FY20 throughout the report. All dollar with the core requirements of the Global amounts are in Australian dollars, unless Reporting Initiative (GRI) Standards. An $1.97bn $3.7m $224m otherwise indicated. Our operations are external assurance provider, KPMG, was Net sales revenue AUS and NZ Community investment Earnings before interest detailed in the infographic on page 4. The engaged to provide limited assurance report does not cover the operations over this report, including Lion’s self- and tax (EBIT) of our parent company Kirin Holdings declared GRI Standards indicators. This Company, Limited (Kirin Group). is the fifth year we have reported in accordance with the GRI guidelines. Our current sustainability strategy outlined on page 6 relates to all To read KPMG’s assurance statement businesses under Lion's operational click here. control in Australia and New Zealand. For the GRI index which provides the list To ensure this report is transparent of indicators we have reported against, and inclusive of other regions beyond please click here. Australasia, the scope of information 3,957 30 3 incorporated in some sections of the People employed Manufacturing facilities Major offices report has been extended when such data was available. We will continue to expand the boundary of data collected in future years as data quality and These amounts are not inclusive of Lion Drinks & Dairy who were part of the business at this time. availability improves. To view our share capital structure and total capitalisation please click here and here. * For a list of the entities covered by the report, please click here and here.

Lion Sustainability Report 2020 1 A message A MESSAGE FROMfrom OUR our CEO Lion is committed to doing the right thing for the long term. As a leading brewer and manufacturer of adult beverages, we know our success hinges on SUSTAINABILITYour ability DIRECTOR to operate ethically and in the best interests of society, while also AND CEO looking after our environment. For this reason, we define our core Following a period of sustained decline growing range of non-alcoholic options We recognise a net zero value chain purpose not in terms of shareholder in the mainstream market, we also from the acquisition of iconic coffee commitment involves our suppliers value, but in terms of the value we had to make the difficult decision to brand, Havana coffee, to the launch and we look forward to partnering for deliver for society: Lion exists to close our West End in South of our first non-alcoholic beer with measuring and reducing our collective champion sociability and help people Australia. We know this has been a Speights 0% coming in mid-July 2021. lifecycle emissions. We have already We have retained our name and aspire to blend This provides a powerful signal to our people of live well.Welcome Considering the to far-reaching Lion’s FY15 particularly tough time for our team in made good progress by becoming the The role of technology across our consequences of global lockdowns due and we havethe worked best of both a listed and private company howfirst large-scalewe expect carbon them neutral to behave brewer and reflects our Sustainability Report. supply chain, customer experience and to COVID-19, our purpose has never felt with those impacted to supportmodel, them meaning Lion is more than just an beliefin both thatAustralia sustainable and New financialZealand. results can only hospitality has also evolved significantly. more meaningful or relevant than over through this change. This was followed by New Belgium’s While we are proud of our work with out-post of a globalWe implemented multinational. our new SAP platform result from generating genuine societal value. the past 12 months. Fat Tire Amber becoming the first international brand owners, aroundDespite 85% the ofchallenges our the year in Australia in 2020, following the nationally distributed certified carbon Across revenueour industry, is delivered the devastating by brands presented,created in we were able toThis deliver means our rolloutstakeholders in New Zealand can engage in 2019; Lion and this We’re pleased to be able to report very solid neutral beer in the US, and Steinlager impact of the closure of pubs, clubs, several key strategic environmentaland be confident is supporting of getting continued swift and innovation, definitive and progress toward our sustainability goals in FY15 Australasia. becoming NZ’s first major carbon zero restaurants, bars and hospitality and social priorities as highlighted making it easier for our customers to do answers. It means Lion can respond with agility andbeer sharebrand, arepresenting range of exciting 10% of the new initiatives. venues globally, and continued trading throughout this report. business with us. This sets Lion apart from the typical consumer to local challenges and opportunities and total NZ beer market. restrictions, are still being felt. We are goods company leveraging globalThe brands way consumers across connectbehave with as sensitivelyWe are asalso possible particularly to proudthe needs of the We hope you find this report informative and proud of our immediate response to All this was made possible by the brands and businesses has shifted strong financial performance of New easy to navigate. We see it as an important step help ourmany customers geographies. throughout what of local communities. ongoing dedication of our people. dramatically in recent years and Belgium in the United States, has been an incredibly challenging time inMore than being accountable ever, we focused to ouron safety stakeholders and also COVID-19 has accelerated this. There in its first full year as part of Lion Little and weOur remain brands committed are connected to supporting to local communities, Anyone who has worked in business anand opportunity wellbeing to help to maintain our people a adaptdialogue, so if you is a growing trend towards mindful World Beverages. New Belgium Brewing them asoften they recover. symbolic of the regions that have nurtured understands while leadership sets the tone, doduring have a time any of feedback great uncertainty for us, please send it to: consumption and wellness which is a leading B-Corporation and its and are proud to have maintained The wide-rangingthem. We impacts must respectof COVID-19, this heritagecontinues and to drive our focuseach on creatingand every activitiesperson contributesand purpose-driven to the culture [email protected] strong people engagement through as well understandas the devastating the bushfiresrole our , in a balanced wineries, portfolio of products,sustainable growthprovide of anvaluable organisation. insights and learnings an incredibly disruptive year. Australiadairy over and the summerjuice facilities of 2019/20, play in everyincluding state low and no alcohol options. for the wider Lion Group. contributed to lower company financial That’s why the culture of a business is so and territory across our region.In Australia, Lion is a long-term As a business, we recognise the need performance in the FY20 period. partner of Heineken. We’reimportant. proud that We’re to committedmove fast on climateto making change. Lion Lion has We believe in making productsHeineken destined® 0.0 was the numbera company one that committedseeks to understandto a net zero value the chain for the Australian and New Zealandselling markets alcohol-free beer inneeds Australia of its stakeholdersby 2050. and operates in Stuart Irvine in 2020. In New Zealand, we have a Stuart Irvine Libby Davidson locally, investing in the success of our region. partnership with them. Chief Executive Officer This is both a legacy of our local brands and Lion Sustainability Report 2020 2 a philosophical commitment. It’s also why we chose to define our core Chief Executive Group General Counsel, purpose – the central objective of our business Officer Sustainability and In this respect, Lion is incredibly lucky to have – not in terms of shareholder value, but as the External Relations a supportive owner that invests for the long- value we deliver for society. Lion exists to Director term. Kirin understands the cultural differences enrich our world every day by championing between Japan, Australia and New Zealand and sociability and helping people to live well. has given Lion’s management a mandate to manage our business locally.

Lion Sustainability Report FY15 2 A message from our A MESSAGE FROM OURGroup General Counsel and SUSTAINABILITY DIRECTORExternal Relations Director 2020 was a year of significant disruption for our communities. The waves of AND CEO adversity – from fire to pandemic and flood – tested our resilience. Human connection was, and remains, more important than ever and Lion’s commitment to sociability and living well has continued to guide everything we do. Welcome to Lion’s FY15 We have retained our name and aspire to blend This provides a powerful signal to our people of SustainabilityThe bushfires Report. in the Australian summer Wethe were best tested of both once a again listed in andthe private companyThe Steinlager teamhow in we New expect Zealand them to behaveThese are and just reflects a few of ourthe wonderful of 2019/20 shocked us all as they tore earlymodel, months meaning of 2021 Lionwith isthe more than justsupported an the RSAbelief and that the NZsustainable Defence financialexamples results of how can Lion only continued to While wethrough are proud regional of our Australia. work with Similarly, our devastatingout-post Australian of a global East multinational. Coast Force’s Stand at resultDawn campaign,from generating genuinefacilitate societal connection value. and provide internationalLion brand Little Worldowners, Beverages around businesses85% of our floods. In partnership with GIVIT, Lion encouraging everyone to support those community support despite the need for revenue isin deliveredthe United by States brands experienced created in provided fundsThis means to our help stakeholders those impacted can engagewho Lionhave servedWe’re their country, pleased while to be able physicalto report distancing very solid due to the pandemic. wildfires at the end of 2020, the likes You can read more stories in the report. Australasia. to getand back be confidenton their feet. of getting swift andstaying definitive safe in theirprogress bubbles toward at home. our sustainability goals in FY15 of which we have not seen before. Steinlager turned 21 billboards into Andanswers. of course, It it means is impossible Lion can to reflect respond with agility and share a range of excitingThis newreport, initiatives. our first prepared in ‘Walls of Remembrance’, featuring the This setsAs Lion the apart Australian from bushfiresthe typical took consumer hold, on 2020to local without challenges mentioning and opportunities COVID-19 and accordance with GRI principles since names of 30,000 fallen soldiers in the goods companywe reached leveraging out to our global communities brands across and whichbehave has tested as sensitively communities as possible all over to the needs We hope you find this report2017, informative provides an insightand into Lion’s week leading up to ANZAC Day. many geographies.customers to provide a helping hand as theof world local in communities. different ways. Being easy to navigate. We see sustainabilityit as an important ambitions, step commitments they battled to save homes, businesses social and interacting with others is a In Australia, Furphyin being set up accountable a virtual to ourand stakeholders performance and – a journeyalso we are Our brandsand are livelihoods. connected We to combined local communities, fundamentalAnyone who feature has of worked human inlife, business and pub open every Fridayan opportunity throughout to the maintain very a dialogue, proud to beso on.if you often symbolicworkplace of the giving, regions brand that initiatives have nurtured withoutunderstands opportunities while for leadership social contact, sets thelockdown tone, of Aprildo 2020, have hosting any feedback up to for us, please send it to: Copies of previous reports can be found and donations to contribute more including those provided by hospitality 1,000 people to share a beer with some them. We must respect this heritage and each and every person contributes to the [email protected] and you can visit www.lionco.com than $1 million to relief efforts. venues, we have become increasingly familiar faces around a virtual wooden understand the role our breweries, wineries, sustainable growth of an organisation. to learn more. aware of the very real impact loneliness pub table. Each Friday had a different dairy andA juice great facilities example play of our in responseevery state to the and isolation can have on wellbeing. celebrity bartender, and patrons could and territorydisaster across was our Little region. Creatures’ donation That’s why the culture of a business is so rate their host’s hospitality using a of 100% of its ‘Raspberry Dreams’ Throughimportant. our focus We’re on communitycommitted to making Lion virtual tip jar, with contributions going We believebeer sales in making to WIRES products to support destined the anda customers company wethat developed seeks to several understand the to GIVIT’s COVID-19 relief fund, which for the Australian‘little creatures’ and New that Zealand lost lives markets and programmesneeds of toits foster stakeholders connection and operates in Libby Davidson Furphy matched dollar-for-dollar. locally, investinghabitats induring the successthe fires. ofOur our friends region. duringpartnership the pandemic. with Forthem. example, Stuart Irvine Libby Davidson Group General Counsel and This is bothand a colleagues legacy of atour New local Belgium brands Brewing and New Belgium Brewing launched its Bar External Relations Director a philosophicalalso supported commitment. this cause all the way & RestaurantIt’s also why Relief we Fund chose to provideto define our core Chief Executive Group General Counsel, from Colorado. financialpurpose support – the to central workers objective in the of our business Officer Sustainability and In this respect, Lion is incredibly lucky to have hospitality– not in industry terms of as shareholder well as frontline value, but as the External Relations a supportive owner that invests for the long- workers,value raisingwe deliver over USDfor society. $300,000. Lion exists to Director Lion Sustainability Report 2020 3 term. Kirin understands the cultural differences enrich our world every day by championing between Japan, Australia and New Zealand and sociability and helping people to live well. has given Lion’s management a mandate to manage our business locally.

Lion Sustainability Report FY15 2 Our business Our business Operations YORKSHIRE About us Operations Magic Rock YORKSHIRE Our business Magic Rock LONDON LONDON Lion is a leading beverages company in Australasia, with fast-growing Argyle Operations YORKSHIRE ArgyleOregon About us MagicFourpure Rock Oregon operations in the United States and United Kingdom. As aa membermember Fourpure LONDON MacRostie About us OperationsLittle Creatures YORKSHIRE MacRostie CALIFORNIA New Belgium Lion is a leading beverages company in Australasia, with fast-growing Little MagicCreatures Rock ArgyleCALIFORNIA NewAsheville Belgium of the Kirin Group, we produce, market, sell and distribute alcoholic and LONDON Markham Asheville of the Kirin Group, we produce, market, sell and distribute alcoholic and Fourpure Markham Oregon operationsLion is a leading in the beverages United States company and United in Australasia, Kingdom. with As afast-growing member MacRostieTextbook Argyle non-alcoholic drinks and operate microbreweries worldwide. Little Creatures Textbook CALIFORNIAOregon New BelgiumNew Belgium non-alcoholic drinks and operate microbreweries worldwide. Major office Fourpure Asheville New Belgium ofoperations the Kirin Group, in the weUnited produce, States market, and United sell and Kingdom. distribute As alcoholica member and Major office MarkhamNewMacRostie Belgium Fort Collins NewSan FranciscoBelgium Fort Collins Little Creatures San Francisco CALIFORNIA New Belgium Major brewery Magnolia BrewingTextbookMarkham - Dogpatch Asheville non-alcoholicof the Kirin Group, drinks weand produce, operate microbreweriesmarket, sell and worldwide.distribute alcoholic and Major officebrewery Magnolia Brewing - Dogpatch New Belgium New BelgiumSan Francisco Fort Collins Craft brewery San FranciscoSanTextbook Francisco non-alcoholic drinks and operate microbreweries worldwide. CraftMajorMajor brewerybrewery office Magnolia Brewing - Haight New Belgium MagnoliaMagnolia Brewing - BrewingDogpatchNewSan Belgium Francisco- Haight Fort Collins Structure and strategies Winery San FranciscoSanSan Francisco Francisco Structure and strategies WineryMajor brewery Craft brewery MagnoliaMagnolia Brewing Brewing - Haight - Dogpatch Structure and strategies Micro brewery San FranciscoSan Francisco MicroWineryCraft brewery brewery Magnolia Brewing - Haight San Francisco Structure and strategies CoffeeMicroCoffeeWinery brewery CoffeeMicro brewery Coffee Little Creatures HobsonvilleLittle Creatures Point Hobsonville Point Tiny Mountain Little CreaturesFreemans Bay Tiny Mountain HobsonvilleFreemans Point Bay Brewery AUCKLAND Brewery The Pride AUCKLAND Tiny Mountain FreemansLittle BayCreaturesThe Pride Hobsonville Point BreweryMILTON MILTON The Pride AUCKLAND Eumundi BreweryTiny Mountain XXXX Freemans Bay 30 Eumundi Brewery XXXX 30 MILTONBrewery Panhead The Pride WELLINGTONAUCKLANDPanhead Manufacturing Eumundi Brewery XXXX Malt Shovel WELLINGTON Upper Hutt Manufacturing30 Byron Bay Brewing Co. Malt Shovel Upper Hutt Byron Bay Brewing Co. Camperdown MILTON Camperdown WELLINGTONWither Hills Panhead Havana Little Creatures WitherMarlborough Hills Upper Hutt Havana Manufacturingsites Little Creatures ByronEumundi Bay Brewing Brewery Co. Malt ShovelXXXXSydney Olympic Park Marlborough 30sites Fremantle CamperdownSydney Olympic ParkWither Hills Havana Little FremantleCreatures SYDNEY CHRISTCHURCHPanhead The Fermentist sites PERTH WESTERN SYDNEY Sydney CBDOlympic York Park St MarlboroughWELLINGTONCHRISTCHURCH The Fermentist Manufacturing FremantleBevy ByronWESTERN BaySYDNEY Brewing SYDNEY Co. MaltCBD Shovel York St Upper Hutt BrewingBevy Co Brewing Co PERTH Camperdown Wither HillsCHRISTCHURCH The FermentistHavanaHarrington’s Little BevyCreatures WESTERN SYDNEY CBD York St Harrington’s sites Sydney Olympic Park Marlborough BrewingFremantle Co SYDNEY Tooheys DUNEDIN Emerson’sHarrington’s PERTH Tooheys DUNEDINCHRISTCHURCH Emerson’s Lion Australia Lion New Zealand Lion Little World Beverages US UK MELBOURNEWESTERN SYDNEYKosciuszko CBDLidcombe York St The Fermentist Lion Australia Lion New Zealand Lion Little World Beverages US UK Bevy Kosciuszko TooheysLidcombe DUNEDIN Emerson’s Brewing Co MELBOURNE Brewery Speight’s Lion Australia Lion New Zealand Lion Little World Beverages US UK KosciuszkoBrewery Lidcombe Speight’s Harrington’s Brewery Speight’s James Boag’s Tooheys DUNEDIN Emerson’s Furphy / Little MELBOURNE James Boag’s Lion Australia Lion New Zealand Lion Little World Beverages US UK FurphyCreatures / Little / KosciuszkoLaunceston Lidcombe FurphyCreatures / Little / JamesLaunceston Boag’s 3 White Rabbit Brewery Speight’s 3 CreaturesWhite Rabbit / Launceston 3 White RabbitGeelong Major offices Geelong Major offices FurphyGeelong / Little James Boag’s Priority Core Craft Craft Major offices Creatures / Launceston Core Craft Seltzer Craft Seltzer 3 White Rabbit Priority Core Craft Seltzer Craft Seltzer Categories Beer Beer Seltzer BeerBeer Seltzer Geelong Categories Beer Beer Beer Major offices Priority Core Craft Craft Seltzer Seltzer Categories Beer Beer Beer KeyKeyKey brandsbrands Key Key FOCUS ON GROWTH ACCELERATION ININ PRODUCTIVITYPRODUCTIVITY StrategiesStrategies FOCUS ON GROWTH ACCELERATION IN PRODUCTIVITY Key brandsAustraliaAustraliaAustralia NewNewNew Zealand ZealandZealand Lion LittleLionLion LittleLittleWorld WorldBeveragesWorld BeveragesBeverages Key Strategies FOCUS ON GROWTH ACCELERATION IN PRODUCTIVITY Australia New Zealand Lion Little World Beverages

FocusFocus on Core on Core EmbedEmbed New New GloballyGlobally AccelerateAccelerateAccelerate CategoriesCategories and and GrowthGrowth CompetitiveCompetitive CulturalCulturalCultural GeographiesGeographiesFocus on Core CapabilitiesCapabilitiesEmbed New CostCost BaseGlobally Base EffectivenessEffectivenessEffectivenessAccelerate Categories and Growth Competitive Cultural Geographies Capabilities Cost Base Effectiveness

Lion Sustainability Report 2020 4 The issues that matter – Materiality

In January 2021 we held a materiality workshop facilitated by external providers to review our material topics. The materiality review engaged a broad range of internal stakeholders to determine which environmental, social and governance topics were most likely to affect the success of our business, now and in the future.

Starting with the existing material Our top nine material topics as defined topics from our previous sustainability by this process are: safety, health and External report, we overlayed key drivers wellbeing; supporting our communities; consultation for change including sustainability diversity and inclusion; packaging megatrends, the changing regulatory waste; climate change; water security In FY20 we undertook research to environment and shifts in both capital and quality; responsible consumption; understand consumer insights to markets and societal expectations along sustainable procurement and human climate change and sustainability. with the changes to our own business rights; and transparent labelling. This has enabled us to understand model. We also benchmarked existing the external context and changes in These material topics align with the material topics against customers consumer behaviour. As we prepare for sustainability pillars in our sustainability and competitors to verify any new or our next GRI report we will continue to strategy on page 6. emerging trends. engage with our internal and external The following tool can be used stakeholders to seek feedback and input. To validate and prioritise material to navigate the material topics in topics, we assessed against relevance the report. Sustainability (important to highly material) and the degree to which Lion has control to governance manage the topic (low to high). Inclusion Packaging Inclusion Packaging The SustainabilityInclusion Packaging Team partners with Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste As a result of this workshop, our business units to manage sustainability materialSupporting topics our were revised to Climatebetter Supporting our Climate Supportingrisks ourand implement policiesClimate and Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v reflect the naturen of our irbusiness today n ir n ir n ir n ir o o initiatives relating oto sustainability. The o o u n u n u n u n u n m m m m m m m m m m

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Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

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Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

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Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights Our sustainability approach Community Safety, health & wellbeing Page 9 Supporting our communities Page 11 Our leadership principles guide us in fulfilling Inclusion & diversity Page 14 our purpose

Be first choice with consumers, to win with customers Our Think beyond, Environment innovate, and adapt purpose Packaging waste Page 17 is to champion Decide fast and sociability and help Climate change Page 19 make it happen people live well Water security & quality Page 21 Welcome difference and stand for fairness

Do the right thing, for the long term Responsibility Responsible consumption Page 24 Connecting our little world Sustainable procurement & Page 26 Across Lion’s global craft beer and wine portfolio, we activate our sustainability strategy in locally-relevant and meaningful human rights ways to each market across the US and the UK.

Lion's achievements are recognised through Transparent labelling Page 28 alignment with the B4SI Corporate Citizenship and the UN SDGs frameworks. Data and targets above are for Lion Australia & Lion New Zealand only. Lion Sustainability Report 2020 6 Our sustainability performance Our Sustainability Scorecard – Australia and New Zealand1 Below expected progress Steady progress Well progressed Material topic Indicator Target/Commitment FY20 Progress

TRIFR 5.76 (10% reduction on FY19 result) 3.03 Safety, health & wellbeing2 LTIFR 3.19 (10% reduction on FY19 result) 1.61

Volunteering hours 2,557 350 4 Supporting our communities Community Community investment $3.2m $2.7m 4 Gender pay gap +/- 1% - 0.7% Inclusion & diversity Gender diversity 50:50 gender balance by 2026 40.2%

Packaging waste % of recycled content in packaging At least 50% recycled content by 2025 45-49%

55% reduction in carbon emissions Climate change Scope 1 and 2 emissions (kgCO e) 14% reduction 2 by 2030 (from an FY19 baseline) Environment A water efficiency target of <2.4 L/L Water security & quality Water usage intensity 3.7 L/L 5 by 20253

Alcohol&Me online modules completed and/or Responsible consumption 31,000 38,651 people trained face to face

Sustainable procurement Percentage of high-priority suppliers with a risk > 95% 98% & human rights assessment (SEDEX) Responsibility Transparent labelling Compliance with labelling codes 100% compliance 100%

1. Raw data for FY19 and FY20 can be found here. 2. The safety, health and wellbeing targets and performance data cover all of Lion except for the UK. 3. The water target and performance data relate to our five major manufacturing sites in Australia and New Zealand (Tooheys, XXXX, West End, Boags and The Pride NZ). 4. Please refer to page 13 for more detail on FY20 progress. 5. Please refer to page 21 for more detail on FY20 progress. Lion Sustainability Report 2020 7 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

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Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

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Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste build relationships& diversity waste with our people,& diversity waste & diversity waste customers, consumers, suppliers Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v and communityit v partners to make a it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

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Transparent Responsible Transparent Responsible EmployerTransparent Responsible ReliefTransparent Fund Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement New Belgium Brewingprocurement Co. (NBB) & human rights $1m& human rights+ of Choice& human rights & human rights launched its Bar & Restaurant Donated to Australian Received Australia’s Workplace Gender Relief Fund to supply financial aid to bushfire relief efforts Equality Agency (WGEA) Employer of workers in the hospitality industry, Choice for Gender Equality citation for as well as frontline workers the third year in a row Lion Sustainability Report 2020 8 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste Community& diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

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t Why is it important How we manage How we stay

C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality Safety,wellbeing & healthquality wellbeing & qualityfor Lion? wellbeing safety& qualityand on track R R R R e e e e R y sp lity sp lity sp lity sp lity es ilit onsibi onsibi onsibi onsibi We believe that keeping our people ponsiwellbeingb Lion’s key safety performance Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible safe is fundamental to the sustainableTransparent Responsible measures include both lead and lag labelling consumption labelling consumption &labellin wellbeingg consumption labelling consumption labelling Lion’sconsumption Safety & Wellbeing Policy sets out Sustainable Sustainable Sustainable Sustainable success of Lion and a demonstration ofSustainable performance indicators. procurement procurement procurement procurement our core purpose in action: championingprocurement our key safety commitments, which we & human rights & human rights & human rights & human rights & human rights In July 2020, we expanded our key sociability and helping people live well. use to develop a culture of care, as well Our safety vision at Lion is ‘Everyone Safe as ownership and leadership for safety lead safety performance indicator, Our commitment to keeping everyone and wellbeing. In this, Lion commits to: the Safety Index Score (SIS), across all Everyday’ and this is the driving force behind the safe was hugely influential in Lion’s • meeting relevant safety legislation, functions. The SIS comprises six key response to the COVID-19 pandemic, leading indicators (risk assessments, Inclusion Packaging Inclusion Packaging measuresInclusion we takePackaging to ensure both the physicalInclusion Packaging • working to continuously improve our & diversity waste & diversity waste & diversity waste & diversity waste as we navigated the challenges of inspections, near misses, training, safety, and the mental and emotional wellbeing, operating safely and supporting our safety performance, corrective actions and incident Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate people working under restricted • providing our people with investigations). communities E change communities E change ofcommunitie our people.s E change communities E change y n y n y n y n it v it v it v it v circumstances, including working supervision, training, tools and n ir n ir n ir n ir u o u o u o u o Lion’s key lag performance indicator is n n n n m m m m m m m m from home. equipment to stay safe every day,

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water • identifying and reducing safety risks health & security health & security health & security health & security Rate (TRIFR). Pleasingly, we recorded wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality to as low as reasonably practicable, R R R R a sustained reduction in injuries es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili • communicating and consulting with over the year. While performance our people on matters affecting improvement from March may in Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption their safety, and part be attributable to the impacts of Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement • supporting our people in the event COVID-19 (e.g., closure of Hospitality & human rights & human rights & human rights & human rights they are injured at work. etc), our Supply Chain sites continued to operate throughout this period. Lion achieved these commitments by embedding safety and wellbeing Keeping our people safe policies, frameworks, and strategies Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging that reduce risk, delivering best practice & diversity waste during COVID-19& diversity waste & diversity waste & diversity waste 97% safety systems and driving safety COVID-19 had significant implications ownership by all. Supporting our Climate Supportingfor Lion’s our operations and ensuringClimate the Supporting our Climate Supporting our Climate of mandatory safety training communities E change communities E change communities E change communities E change y n y n y n y n completed on time Our strategic focus in 2020 was it v safety andit wellbeingv of our people – it v it v n ir n ir n ir n ir u o u o u o u o n n n n ‘Keep Our People and Workplace m m includingm our employees,m contractors m m m m

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C C C and suppliersC – was a priority for our Safety, Water Safety, Water Safety, Water Safety, Water health & security healthleadership & team. To keep oursecurity people health & security health & security improving our commitments outlined wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R above, as well as navigating the e y and partnerse safe, wey implemented e y e y spo ilit spo ilit spo ilit spo ilit nsib segregation, socialnsib distancing, increased nsib nsib challenges posed by COVID-19. Transparent Responsible hygieneTransparent measures and,Responsible as necessary, Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable the closing Sustainableof hospitality venues in line Sustainable Sustainable procurement procurement procurement procurement & human rights with government& human rights directives. Alongside & human rights & human rights this, we also implemented a range of measures to support mental wellbeing and resilience during an incredibly challenging year. Lion Sustainability Report 2020 9 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste Community& diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m Safety, m healthm & wellbeing m m m m

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security (continued)health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights Highlights Performance1

Inclusion Packaging Inclusion Packaging SustainedInclusion reduction Packaging in 3.03 Total RecordableInclusion IncidentPackaging & diversity waste & diversity waste injuries over& diversity the year.waste Frequency Rate& div (TRIFR)ersity waste against an FY20 target of 5.76. Supporting our Climate Supporting our Climate 10%Supporting improvement our in Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v TRIFR from 2019.it v 1.61 Lost Time Injuryit v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m Frequency Ratem (LTIFR) againstm

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C C C Safety, C Water Safety, Water Safety, Water an FY20Safety target, of 3.19. Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R Each business unitR scored 6/6 in es ty es ty es ty es ty ponsibili ponsibili ponsibili the Safety Index Scoreponsibi l(SIS)i in 2 Transparent Responsible Transparent Responsible Transparent Responsible our first yearTransparent of use. Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement 17,682 hours of safetyprocurement training & human rights & human rights & human rights completed by employees& human rights through Success Factors.3 Around our Little World 97% of mandatory safety In January 2021 our Lion Little World training completed on time. Beverages UK team launched a Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste challenge& diversity to see ifwaste they could walk, run, & diversity waste & diversity waste cycle and swim from Magic Rock or Lion’s pandemic response Supporting our Climate SupportingFourpure our in the UK to NewClimate Belgium in Supporting our Climate Supporting our Climate Lion’s priority during the COVID-19 time, including working flexibly and Group Leadership Team receiving communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir Fort Collins, USA. Their challenge was ir ir n o n o n o n o crisis was to keep our people staying connected, building resilience regular updates on developments u n u n u n u n m m designedm to inspire ourm teams to stay m m m m safe. To that end, we developed a in self and families, optimism, and and the implementation of our

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C C C Safety, Water Safetyhealthy, C – both physically andWa mentallyter Safety, Water Safety, Water series of pandemic response plans, mindful July – a series of guided response plans. health & security health & security health & security health & security wellbeing & quality wellbein– gespecially during the challenging& quality wellbeing & quality wellbeing & quality which were designed to allow our mindfulness sessions for all. R R R R Finally, we recognised the increasing es ity tier four lockdownes it yperiod in the UK. es ity es ity organisation to respond nimbly ponsibil ponsibil ponsibil ponsibil Strict compliance with governmental importance of mental health during The distance of individual activity was to unexpected changes in our and regulatory requirements has this prolonged crisis; and, as a result, Transparent Responsible trackedTransparent and aggregatedResponsible via the exercise Transparent Responsible Transparent Responsible operating environments. labelling consumption labelling consumption labelling consumption labelling consumption also been crucial in preserving the have commissioned an internal review Sustainable app Strava Sustainableto inspire everyone to stay Sustainable Sustainable procurement procurement procurement 1. Performance data covers all of Lionprocurement excluding the Additionally, we also developed health and safety of our people, of Lion’s mental health strategy with & human rights active and support& human rights our communities by & human rights UK and Europe. & human rights raising money for some amazing causes 2. This data point was outside the scope of KPMG’s and delivered COVID-19 capability partners and suppliers. Lion’s the help of independent not-for-profit, at the same time. assurance. sessions to provide practical advice leaders were directly involved in the Black Dog Institute. 3. This does not include all Safety and Wellbeing and support during this uncertain our pandemic response, with the programmes such as Stop for Safety or Mental Health First Aid Training. Lion Sustainability Report 2020 10 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste Community& diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m As part of the community investment

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water refresh, we reviewed our strategic health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality Supportingwellbeing & quality ourwellbeing for &Lion? quality supporting the partnerships through a tender process R R R R es ty es ty es ty es ty Re ity and from 2021 to 2024, Lion’s strategic ponsibili ponsibili ponsibili ponsibili sponsibil While we have operations across communities in community partners will be Gotcha4Life Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsiblethe world, we tailor our operational and Graeme Dingle Foundation. We also labelling consumption labelling consumption labelling consumption communitieslabelling consumption labelling consumption which we live, work Sustainable Sustainable Sustainable Sustainable Sustainable approach to meet the needs of each reviewed and refreshed our workplace procurement procurement procurement procurement procurement community we serve. As a result, local & human rights & human rights & human rights & human rights & human rights and play giving partners. This was done through a councils, universities, community survey of all Lion employees in Australia Contributing to and investing in the communities in associations and local not-for-profits Lion has always contributed to the and New Zealand. The number of which we operate is a central tenet of our business. play an important role in guiding our communities in which it operates. workplace giving partners increased efforts around educational programmes With a core purpose of championing from 10 to 20. Details of the not-for- Inclusion Packaging Inclusion Packaging Inclusion Packaging We recogniseInclusion thatPackaging healthy local communities are and community wellbeing. sociability and living well, our approach & diversity waste & diversity waste & diversity waste & diversity waste profit partners we support are listed critical to the sustainable growth of our business; to community investment in Australia on our website. and New Zealand has focused on: Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate In 2021 we will continue to work across communities E change communities E change communities E change andcommunitie wants to supportE thosechange who support us, through y n y n y n y n • Building positive relationships it v it v it v it v n ir n ir n ir n ir the Lion Group to identify opportunities u o u o u o u o n n n good times and bad.n m m m m m m m m • Building a positive drinking culture

e e e e for collective and collaborative m m m m

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water • Better nutrition for all community investment initiatives. health & security health & security health & security Throughhealth & Lion’s Communitysecurity Investment Strategy, wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality • Preserving our lands and natural R R R R In 2020 in Australia, we started our es ty es ty es ty we are committedes ty to investing in and contributing ponsibili ponsibili ponsibili ponsibili resources to the communities in which we operate and making reconciliation journey. This included Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Through this approach we provided the development of a Reconciliation labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable a meaningful andSustainable measurable impact. We do this support through strategic partnerships, Action Plan Working Group comprising procurement procurement procurement procurement representatives across the business to & human rights & human rights & human rights through both& human strategic rights community investment workplace giving and volunteering. Such partnerships had been in place for input to the drafting and compilation partnerships and long-term relationships with over six years and in 2020 we decided of Lion’s first Reflect RAP. To support our nominated workplace giving partners. to review this. Following an in-depth this, we worked in partnership with process of research into social issues Corporate Culcha, an Indigenous of importance and due diligence, we training provider, to develop the Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste refreshed and refined our community Lion Aboriginal and Torres Strait investment strategy (see the infographic Islander Cultural Capability modules Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate here). The revised strategy was and workshops to be rolled out to communities E change communities E change communities E change communities E change y n y n y n Uplifting Australiay n connects families online Acting locally it v it v it v it v launched internally in November 2020. Lion employees in 2021. In NZ, we n ir n ir n ir n ir u o u o u o u o n n Sustainable Developmentn Goals As part of our Community Investmentn Based on the four essential skills of In response to the COVID-19 crisis in the celebrate Maori Language Week held m m m m m m m m

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o o n o Programme in 2020,o Lion was proud to listening, appreciation, emotions and United States, New Belgium Brewing in September each year.

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C C C Safety, Water Safety, C Water SafetyThrough, our partnership withWa ter Safety, Water health & security health & security health & security be ahealth partner & with Uplifting Australia.security self-responsibility it guides the user Co. (NBB) launched its Bar & Restaurant wellbeing & quality wellbeing & quality wellbeinTasman Environmentalg Markets,& quality wellbeing & quality R R R During 2020, UpliftingR Australia updated through a short online module with Relief Fund to supply financial aid es ty es ty we’re empoweringes tlocaly communities es ty ponsibili ponsibili ponsibili its programmes, andpo adaptednsibili them to clear instructions on how to practice to workers in the hospitality industry, by supplying employment opportunities a virtual format – launching the Family each of the skills through meaningful as well as frontline workers. NBB’s Transparent Responsible Transparent Responsible andTransparent sustainable infrastructureResponsible for Transparent Responsible labelling consumption labelling consumption labelling consumption Connectlabellin programmeg online. Familyconsumption conversations within the family unit. efforts raised more than US$300,000, Sustainable Sustainable economic, culturalSustainable and social resilience, Sustainable procurement procurement procurement Connect is a familyprocurement programme that providing much needed financial & human rights & human rights advancing our& human efforts rights to support & human rights SDGs 15 (Targets: 15.2 and 15.3) sets children up for good mental health support to 567 eligible workers. As a and 8 (Target: 8.4) and is backed by evidence and a team of Certified B Corp, New Belgium Brewing thought leaders in family wellness. is committed to supporting its local community, especially in times of need. Lion Sustainability Report 2020 11 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste Community& diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m Supportingm ourm communities m m $1m+

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water Donated to bushfire health & security health & security health & security (continued)health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality relief efforts R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights How we stay on track In 2019, Lion adopted the B4SI Following an in-depth materiality Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste framework1 to& div manageersity andwaste measure assessment of the most relevant and our positive impact within our pressing social issues, we identified Supporting our Climate Supporting our Climate Supporting our Climate communities.Supporting our B4SI is a robust, Climate mental health and resilience as a key communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir internationally recognised irframework focus area going forward and invited n o n o n o n o u n u n u n u n m m m m m m that allows us tom measure them impact not-for-profits to pitch to work in

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C C C Safety, C Water Safety, Water Safety, Water of ourSafety activities, within the communityWater partnership with us on this important health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeinArtist:g Sarrita King Tribe: &Gurindji quality NT throughwellbeing three pillars: Inputs, Outputs& quality social issue. The result of this rigorous R R R R es ty es ty es ty and Impacts. In 2020,es wet yexpanded our process is that we will continue to ponsibili ponsibili Year Created:pon s2020ibili Title: Waterhole ponsibili data collection to include our global partner with the Graeme Dingle Medium: Acrylic paints on canvas Transparent Responsible Transparent Responsible Transparent Responsible businessesTransparent and we will buildResponsible on this Foundation in New Zealand and will labelling consumption labelling consumption Imagelabelling Licensing Rightsconsumption managed by labelling consumption Sustainable Sustainable Sustainable work to formaliseSustainable global targets in launch a new and exciting partnership procurement procurement Dreamtimeprocurement Art Creative Consultancy procurement & human rights & human rights & human rights years to come. & human rights with Gotcha4Life in Australia. As part of Lion's Reflect This approach provides a reliable and We have set clear targets around holistic view of a company’s social volunteering hours for the Australian RAP, we commissioned investments, from what is contributed, and New Zealand businesses, where a piece of artwork. what happens and what changes all permanent employees can access Inclusion Packaging Inclusion Packaging Inclusion Packaging as a result. SettingInclusion annualPa ckagingtargets two paid volunteering days per year. & diversity waste & diversity waste & diversity waste & diversity waste ‘ Waterhole’, by enables us to continue to review and We measure engagement with our Gurindji artist Sarrita track performance of our community volunteering and workplace giving Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities change communities change communities change communities change Australian bushfire relief E E E investment using this framework.E programmes quarterly. We look ty nv ty nv ty nv ty nv i i i i King, highlightsi i the i i n r n r n r n r u o u o u o u o n n n n forward to sharing more detail about Lion stepped in to help communities “Every day over the last couple In addition to these contributions, m m m m m m Throughout 2020,m Lion continuedm to

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C C C C support our two strategic partners, Safety, Water Safety, Water Safety, Water Safety, Water social impact report. bushfires in 2019-20. In January to see new events and initiatives given access to extended credit and health & security health & security healththe & nurturing of livingsecurity health & security wellbeing & quality wellbeing & quality wellbeing & quality Upliftingwellbeing Australia and the Graeme& quality R R R R 2020, we combined our workplace organised by our teams – not just invoice terms, stock allowances and es ty es ty es ty Dingle Foundationes (NZ), asty part of our ponsibili ponsibili things. pTheonsibil i social and ponsibili giving contributions, brand initiatives in Australia and New Zealand, but altered delivery conditions as needed. execution of this strategy. As part of and not-for-profit donations to across our Little World Beverages Free cleaning was provided for Transparent Responsible Transparent Responsible sustainingTransparent aspectsResponsible of the refreshedTransparent Community InvestmentResponsible labelling consumption labelling consumption labelling consumption labelling consumption contribute in excess of $1 million to footprint too – focused on helping the draught beer systems to get venues Sustainable Sustainable Sustainable Strategy, we also reviewedSustainable our strategic procurement procurement the waterholeprocurement are also procurement the bushfire relief effort. Lion CEO, communities in which we operate get back open as soon as possible. & human rights & human rights & human rights community partnerships.& human right s significant for Lion, Stuart Irvine, said the company’s back on their feet.” reflecting our purpose to response was led by its people.

champion sociability and 1. Previously known as the London Benchmarking Group. help people live well. Lion Sustainability Report 2020 12 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste Community& diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m Supportingm ourm communities m m 1,608

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water students in the health & security health & security health & security (continued)health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality Kiwi Can programme R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights Highlights Performance Borough Wines

Inclusion Packaging Inclusion Packaging Inclusion Packaging Donated inInclusion excess Paofckaging 350 volunteering hours & diversity waste & diversity waste & diversity waste $1 million &to diversity Australian waste completed in New Zealand partnership bushfire relief efforts. and Australia against an This year Lion also partnered with Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate the Graeme Dingle Foundation communities E change communities E change communities E change communities E change annual target of 2,557. y n y n y n y n it v it v it v $30 million init creditv issued to ir ir ir ir and others to create Borough n o n o n o n o u n u n u n u n m m m m m m venues for unusedm kegsm left $2.7 million community Wines – a Marlborough-based

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C C C Safety, C Water Safety, Water Safety, Water strandedSafety, due to COVID-19 Water investment across Australia fund raising initiative. We donated health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality restrictions.wellbeing & quality and New Zealand in 2020 winemaking services and label and R R R R es ity es ity es ity es ity against a target of $3.2 million. website design, enabling the Graeme ponsibil ponsibil ponsibil $3.7 million1: ourponsi btotalil global Dingle Foundation to help fund the Transparent Responsible Transparent Responsible Transparent Responsible communityTransparent investment.Responsible Given the challenges faced in labelling consumption labelling consumption labelling consumption labelling consumption valuable programmes they run in Sustainable Sustainable Sustainable Sustainable the volunteering sector due to Marlborough, New Zealand (Kiwi procurement procurement procurement $2.7 million communityprocurement Strategic Community Partnership - & human rights & human rights Building &positive human rights relationships investment in& Australia human rights COVID-19 lockdowns, we did Can, Stars and Career Navigator). and New Zealand. not manage to meet our 2020 Distinguished Vineyards & Wine target. We also recognise that “The entire Lion team have been Graeme Dingle Foundation Partners (DVWP), our premium wine incredibly amazing in supporting the business in North America, encapsulates community investment across The Graeme Dingle Foundation In 2020 Lion sponsored five local Australia and New Zealand Borough Wine initiative – from their Lion’s approach to supporting our growers, winemaking, marketing design delivers evidence-based programmes Tamaki schools to take 1,608 students Inclusion Packaging Inclusion Packaging communities.Inclusion DVWP’sPackaging collection of Inclusion Packaging declined to $2.7 million in 2020 that build life skills and confidence through their weekly Kiwi Can & diversity waste & diversity waste & diversity waste & diversity waste and website support as well as staff iconic wineries focuses its community from a base of $3.3 million in volunteer time with ongoing admin …” and support young people in New programmes. Kiwi Can teaches values 2019. This is a result of the Zealand with career navigation. and life skills that the students take Supporting our Climate Supporting our Climate Supportingcontribution our through the mentalityClimate of Supporting our Climate – Kelvin Watt (GDF Marlborough communities E change communities E change communities E change communities E change The life skills generated through with them through school and into y n y n ‘growing forwardy whilen also giving back.’ y n impact of COVID on brand Regional Manager). it v it v it v it v n ir n ir n ir n ir u o u o u o u o participation in the programmes later life, encouraging self-belief and n n In September 2020, DVWPn launched n investments and in-person m m m m m m m m

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o o n Dough Wines,o a collaboration with the o volunteering events.

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C C C Safety, Water Safety, C Water Safety, Water Safety, Water to succeed in life. Lion has formed health & security health & security healthJames & Beard Foundation (JBF).security As part health$3.7m & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality an extensive partnership with the R R of this ground-breakingR partnership, R e y e y e y our total global communitye y spo bilit spo bilit spo bilit spo bilit Graeme Dingle Foundation which is nsi nsi an annual donationnsi from Dough Wines investmentnsi will support the valuable work the pivotal to ensuring the Graeme Dingle Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption Foundationlabelling does for theconsumption restaurant labelling consumption Foundation’s work can continue to Sustainable Sustainable Sustainable Sustainable procurement procurement industry andprocurement our local communities. procurement be undertaken. & human rights & human rights & human rights & human rights

1. This includes data from Australia, New Zealand, the UK Lion Sustainability Report 2020 13 and US. Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste Community& diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality Inclusionwellbeing & quality for Lion? inclusion and on track R R R R e e e e R y sp lity sp lity sp lity sp lity es ilit onsibi onsibi onsibi onsibi ponsib Many of our people faced new diversity Our Inclusion and Diversity Scorecard Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible challenges in 2020, including working measures and reports progress towards labelling consumption labelling consumption labelling consumption labelling consumption & diversitylabelling consumption At Lion, welcoming difference and our 2030 Gender Balance Aspiration. Sustainable Sustainable Sustainable Sustainable Sustainable from home and managing their own and procurement procurement procurement procurement procurement standing for fairness is one of our We measure gender representation in & human rights & human rights & human rights & human rights & human rights their family’s wellbeing. More than ever, ensuring that all our people felt included Leadership Principles. This is supported teams quarterly. by our Inclusion and Diversity plan, Our success as a business relies on our capacity and valued was a key priority for Lion. Our Remuneration Team reviews pay which sets out three main strategies equity annually and is responsible for to attract and retain the talents of a diverse Not only does diversity of perspectives in 2020: communicating results through quarterly increase our people’s wellbeing and Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging and inclusive workforce. As a result, we focus • embedding inclusion into our culture insight reports to the leadership team. & diversity waste & diversity waste & diversity waste & diversity waste engagement, it is also good for business. to unlock innovation, on creating and maintaining teams that reflect A range of different voices contributes Inclusivity is core to who we are, and is at • attracting, developing and retaining Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate to increased profit, competitiveness and the heart of true sociability, that is why it is communities E change communities E change communities E change communities E change inclusion and diversity in the fullest sense. Inclusion y n y n y n y n a diverse mix in teams, and one of our Leadership Principles ‘Welcome it v it v it v it v innovation. It also better reflects the n ir n ir n ir n ir u o u o u o u o n n n n is building an environment where all people Difference and Stand for Fairness’. m m m m m m m m customers who buy our products, which • building trust and relevance as a

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water irrespective of cultural background, gender identity, in turn delivers increased innovation Lion’s Respect and Conduct policy health & security health & security health & security health & security and better results. We believe this wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality Helping us achieve this are a number sets out how we expect our people to R R R R disability or sexual orientation feel that they belong es ty es ty es ty es ty innovation, driven by a diverse and behave. In 2019, we launched new online ponsibili ponsibili ponsibili ponsibili of policies including Families at Lion, Respect and Conduct Training, that and are given the opportunity to thrive. inclusive culture, is a key enabler for our Lion Flex and our Inclusion and Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible growth aspirations. brings to life our Respect and Conduct labelling consumption labelling consumption labelling consumption labelling consumption Diversity policy. Sustainable Sustainable Sustainable Sustainable policy. Online training is compulsory for procurement procurement procurement procurement Incorporating a diverse range of & human rights & human rights & human rights & human rights Gender equality in the workplace is every team member every two years. perspectives takes commitment. also a key aspect of our Inclusion and In alternate years we have yearly face We need to ensure that consciously Diversity plan. In 2020, we focused on to face training with our people, in small International Women’s Day addressing our biases and challenging several initiatives, including Women at groups to continue to discuss inclusion Advancing women’s participation our assumptions is viewed as an Lion – a targeted career acceleration and our shared accountability to create an inclusive company for all. Our inclusion in the fields of Science, Technology, important component of how we programme for women – and a Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging improve as a business. and diversity practices are reviewed & diversity waste & diversity waste & diversity waste & diversity waste Engineering, Mathematics and company-wide International Women’s regularly to ensure they meet evolving Medicine (STEMM) is essential to Day event. Alongside these initiatives, in community and industry standards. Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate addressing leadership change and 2021 we set ourselves a new target to communities E change communities E change communities E change communities E change y n y n y n y n To meet the commitments set out it v it v it v it v working towards a sustainable achieve balanced teams where there is n ir n ir n ir n ir u o u o u o u o n n n n in our RAP we have implemented m m m m m m m m future for our planet. On a minimum 40% gender representation

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t International Women’s Day (IWD)

C C C C of both men and women across all our Safety, Water Safety, Water Safety, Water Safety, Water the capability and understanding of health & security health & security health & security health & security on 8 March 2020, Lion reinforced teams by 2030. wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality Aboriginal and Torres Strait Islander Re Re Re Re its commitment to gender equality sp lity sp lity sp lity sp lity onsibi onsibi onsibi onsibi by funding a US$25,000 scholarship Lion’s commitment to inclusion cultural heritage. This includes the and diversity also sits at the heart topics of historical perspectives, cultural Transparent Transparent Transparent Transparent with Homeward Bound – a Responsible Responsible Responsible Responsible perspectives and putting cultural labelling consumption labelling consumption labelling consumption labelling consumption transformational leadership initiative of the decision to develop our first Sustainable Sustainable Sustainable Sustainable competence into practice. We will procurement procurement procurement procurement for women with a background in Reconciliation Action Plan (RAP) in & human rights & human rights & human rights & human rights early 2020. To find out more about track completion of training to ensure STEMM from around the world. The we remain on track and continue to 2020 IWD also marked the launch of how we are embedding the RAP, see the ‘Supporting our communities’ improve cultural awareness across our IWD Ale, proudly brewed by the the organisation. Little Creatures Fremantle brew team. section of this report. Lion Sustainability Report 2020 14 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste Community& diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m Inclusion & diversitym m

m e m e m e m e m e

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security (continued)health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights Highlights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging 3rd year in a row Lion received & diversity waste & diversity waste & diversity waste & diversity waste the WGEA Employer of Choice for Gender Equality citation. Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m 1

m e m e m e m e

n n n

o n o o o Performance

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality In 2020, Lion had a female R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili employee base of 40.2% in Australia and New Zealand. Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Lion had a 37% representation procurement procurement procurement procurement & human rights & human rights & human rights & human rights of women in leadership roles Lion shows its true colours Employer of Choice in 2020. In August 2020, Pride at Lion – our for Gender Equality champion group for LGBTIQA+ people The ratio of the basic salary and allies – celebrated the diversity of In 2020, we received the Australian and remuneration of women Workplace Gender Equality Agency our communities as part of the 10th to men for each employee annual Wear it Purple Day. Wear It Inclusion Packaging Inclusion Packaging Inclusion Packaging (WGEA)Inclusion Employer Pa ofckaging Choice for & diversity waste & diversity waste & diversity waste Gender& div Equalityersity (EOCGE)waste citation category was -0.7% in 2020 Purple strives to foster supportive, for the third consecutive year, against a target of +/- 1%. safe and empowering environments Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate for LGBTIQA+ young people. We communities E change communities E change communities E change communitiesignifyings our long-termE commitmentchange y n y n y n y n it v it v it v it v ir ir ir ir also became a corporate supporter n o n o n o and continuedn effortso to become u n u n u n u n m m m m m m m m of the organisation to increase the

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C C C C impact we can make. #pourproudly with the Brooklyn Stonewall IPA Safety, Water Safety, Water Safety, Water Safetyworkplace., Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality Following the tradition of of The Stonewall Inn Gives Back Proceeds from the beer were R R R R To coincide with the Wear it Purple Day, es ty es ty es ty es ty #pouringproudly during the Sydney Initiative. The initiative is a platform donated to the Stonewall Gives ponsibili ponsibili ponsibili ponsibili we brewed purple beer as part of a new Little Creatures release called Purple Mardi Gras season, we partnered that channels decades of activism Back Initiative, as well as the Bobby Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible with Brooklyn Brewery from the US towards supporting and advancing Goldsmith Foundation – Australia’s labelling consumption labelling consumption labelling consumption labelling consumption – a hazy pale ale with a natural Sustainable Sustainable Sustainable Sustainable to bring its Brooklyn Stonewall IPA LGBTQI+ communities in the US oldest community-based HIV procurement procurement procurement procurement purple hue caused by the addition of & human rights & human rights & human rights & human rights butterfly pea flower. to Australia. The beer was created and around the world. It does so organisation committed to providing in collaboration with The Stonewall by raising awareness and providing client-centred care to help people Inn to support the continuing work assistance and education. living with HIV.

1. Performance data relates to Australia and NZ only. For a full data set click here. Lion Sustainability Report 2020 15 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

n n n n

o o o n o o

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights Enviro We collaborate across our supply chain to support a healthy planet by minimising our water use, reducing our carbon emissions and promoting circular economy solutions for our packaging.

Lion’s environmental objectives take a precautionary approach through a robust assessment of risk prior to design, manufacture and marketing of our products. We employ scientific analysis, such as Life Cycle Assessments of new packaging materials, and continual improvement in environmental performance at our sites through Environmental Management Systems and processes audited to international standard ISO14001.

Largest beverage company 1st in New Zealand to become >95% large-scale carbon neutral carbon zero of Lion’s packaging certified brewer in Australia certified is recyclable

Lion Sustainability Report 2020 16 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste Environment& diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

n n n

o o n o o Why is it important How we manage How we stay t t t t

C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality Packagingwellbeing & quality wellbeing & qualityfor Lion? packaging waste on track Re Re Re Re sp lity sp lity sp lity sp lity onsibi onsibi onsibi onsibi The continued move from take, make, Our Sustainable Packaging Strategy Our Sustainable Packaging Strategy

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible waste to a circular economy is providing sets out how we want to improve the also includes several ambitious targets, labelling consumption labelling consumption wastelabelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable opportunities for companies, including circularity of materials used in our value which are aligned with the Australian procurement procurement procurement procurement & human rights & human rights & human rights & human rights Lion, to innovate and respond to chain. As part of this strategy, we focus Packaging Covenant Organisation consumer demands for reduced raw on increasing the recycled content in (APCO) 2025 targets. These are: Solving the pressing environmental problem of material consumption and less waste. our packaging through the following • Increasing recycled content to at three tiers of action: packaging waste is a business imperative for Lion, Our contribution to this issue has least 50% by 2025. and increasingly important to our customers and underpinned our sustainability efforts • First, we aim to maximise recycled • 100% of Lion’s packaging materials for the last two decades and continues content in existing materials without to be reusable, recyclable or consumers. In 2020, we continued to focus on to be a priority. We have invested in compromising quality or safety. compostable by 2025. improving our packaging and initiatives • Second, where it is not yet possible reducing waste and making our packaging more In pursuit of a circular economy we to reduce waste and increase recycling to increase recycled content in our are committed to achieving zero In New Zealand, we recyclable and reusable. rates by consumers. This commitment packaging, we evaluate alternative avoidable waste to landfill by 2025. is strengthened by the work we do with materials. are working closely To keep ourselves accountable, Lion governments and other industry bodies • Finally, we support recovery schemes holds bi-monthly, quarterly and annual with our glass suppliers to shape better policy outcomes and to ensure the collection of clean, reviews to track progress against our amplify our collective impact through to increase the amount high-quality recycled materials that overall sustainable packaging results. technological advancement. of recycled content can be sourced by local suppliers and These reviews are endorsed by Lion’s in our glass bottles. At Lion, we envision a truly circular recycled back into products of equal senior leadership, who have appointed economy as the outcome of our efforts or higher value. a Project Steering Group to report This not only drives a to eliminate waste. As a result, the We do, however, recognise that progress. The projects and initiatives we circular economy, but circular economy concept is embedded widespread societal behaviour change ultimately pursue across our business also reduces our Scope in Lion’s business performance and is required to eliminate waste. While units and brands are informed by this targets as well as our parent company over 95% of Lion’s packaging materials review process. Kirin Holdings’ Environmental Vision 3 carbon emissions in is now recyclable, we believe we have We are also founding members of the 2050. We intend to continue playing a responsibility to also support our Glass Packaging Forum in NZ. We the process. an active role in helping the Kirin Group consumers in understanding how to provide funding towards its globally achieve this vision. correctly dispose of packaging items. unique glass recycling initiatives For instance, we provide recycling including a product stewardship information on our products, including scheme accredited under the Waste the REDcycle logo. Minimisation Act NZ 2008. The scheme For the small amount of packaging has been reaccredited until 2024. items which are not currently recyclable, we are working closely with our Sustainable Development Goals suppliers and waste processors to seek alternative materials. Our sustainable packaging initiatives are aligned to SDG 12 (Targets: 12.2 and 12.5).

Lion Sustainability Report 2020 17 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

n n n n

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste Environment& diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m Packagingm wastem m m

m e m e m e m e

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C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality (continued)wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili 260m Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption containers already returned Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights Highlights Lion’s role in Container Deposit Schemes REDcycle logo added to all our Lion recognises its producer plastic shrink wrap on our cans stewardship responsibilities in and bottle packs to inform relation to its packaging, and plays consumers about how to an active role in all of Australia’s recycle soft plastics packaging. Container Deposit Schemes. Lion holds a majority ownership of Marine Stores, a Super Collector in South Australia and the Northern Lion supplements single-use Territory, and is also part of Exchange Byron Bay Premium packaging for many products for Change, a joint venture that refresh coordinates the NSW Container with a circular system of New Zealand transitions Containers for Change Internationally produced bottles can Deposit Scheme. In Queensland To reduce our reusable steel kegs. The Western Australian container significantly contribute to transport to thinner board and Western Australia, Lion is an deposit scheme commenced on emissions. In 2021, Lion commenced impact on plastic In addition to focusing on locally industry member of Container 1 October 2020, and to date is the updating Byron Bay Premium Lager’s pollution, we produced bottles, we also look to Exchange (QLD) Limited (COEX) most successful scheme launch. packaging by switching to local bottles reduce the amount of material used in and WA Return Recycle Renew are starting to With over 260 million containers – not only to reduce its environmental packaging. Throughout New Zealand, Limited (WARRRL), which have Performance already returned, the Containers footprint, but also to respond more eliminate plastic we transitioned from B-flute corrugated been appointed as the Producer for Change WA Scheme is on track quickly to market fluctuations and More than 95% of Lion’s cartons to thinner I-flute corrugated Responsibility Organisations to shrink wrap around to deliver more than 500 local jobs, strengthen the brand’s identity. packaging is recyclable. cartons. This enabled us to achieve a administer and run the Queensland providing employment opportunities our can packs significant reduction of 85.5 tonnes and Western Australian schemes The project’s outcomes included a 90% 45-49% of recycled content for people with disability, the long- in fibre used and to reduce associated respectively. reduction in the transportation distance in Australia and in our packaging materials term unemployed, and Aboriginal carbon emissions. of each empty glass bottle – resulting in on average. and Torres Strait Islander peoples. replacing it with significant carbon emissions reductions cardboard. Over 3,000 charities and community – and a 23% increase in recycled groups have registered with the scheme content through local suppliers. The to receive container based donations, switch to local bottles also improved and have been paid over $1 million in the recyclability of our packaging as 95% + electronic donations since the launch we eliminated ceramic labels, which of Lion’s packaging of the scheme. are substantial contaminants to glass recycling. is recyclable For more details on Containers for Change WA, please click here. Lion Sustainability Report 2020 18 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste Environment& diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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o o n o o Why is it important How we manage How we stay t t t t

C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality Climatewellbeing & quality change for Lion? climate change on track Re Re Re Re sp lity sp lity sp lity sp lity onsibi onsibi onsibi onsibi The events of 2020 have emphasised 2020 was our year to step-change our As part of Lion’s response to climate

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible how important it is that Lion addresses climate commitments. Lion’s Carbon change there are three key metrics labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable the impacts of climate change. These Neutral Strategy is bold and ambitious that measure the effectiveness of our procurement procurement procurement procurement & human rights & human rights & human rights & human rights include: with a clear pathway to progressively response: direct carbon reduction, • Supply chain disruption: our supply decarbonise our business. energy efficiency and use of renewable Climate change is a systemic issue that all electricity. chains are affected by drought, fire As part of the strategy, we committed In 2020, Lion became businesses must address. As a company, Lion and extreme weather events, and to use 100% renewable electricity to This year, we focused on several takes this challenge seriously. In a world that face increased insurance, water and brew our by 2025 and stretched initiatives to address these three an inaugural member energy costs as a result. ourselves further by adapting our metrics. First, we are converting of the Australian continues to be disrupted by COVID, we remain • Changing consumer preferences: existing science-based target to limit brewery wastewater into biogas to focused on sending a strong signal to our people market trends in our regions global warming to under 1.5°C. This reduce our reliance on natural gas. Climate Leaders demonstrate an increased consumer sets a reduction target of 55% by 2030 Second, we have installed rooftop Coalition, sponsoring and supply chain that we recognise our collective awareness of the effects of climate for our direct emissions (Scope 1 and 2) solar at two of our major breweries – the ‘New Forms of responsibility to measure, manage and reduce our change. from a 2019 baseline which aligns with XXXX and Little Creatures Geelong. emissions. Demonstrating this commitment, Lion • Changing legislation and the commitment made by our parent Finally, we continue to invest in energy Partnership’ initiative expectations: governments and company, Kirin, in July 2020. efficient equipment and review options became Australia’s first large-scale carbon neutral for renewable electricity power to address value industry leaders alike are developing At the same time as addressing our purchase agreements (PPAs) to add brewer in April 2020 and New Zealand’s largest climate commitments, which could direct emissions, we recognise that chain emissions to our PPA in New South Wales. Our potentially impact our business. a majority of our products’ lifecycle beverage manufacturer to be certified as carbon dedicated teams are focusing these across the broader emissions come from indirect (i.e. Ultimately, we believe business must efforts further by reviewing our sites’ zero in early 2021. Scope 3) emission sources. These economy. We have lead the way towards the low-carbon energy performance and identifying emission sources include ingredients also been members of future we all need for long-term opportunities for improvement. economic and social sustainability. and packaging used in our products as the Climate Leaders Playing a leading role within our well as logistics services throughout the Lion reports on its environmental Coalition in New industry to support this vision is supply chain. That’s why we have also performance through our therefore central to our own success set a science-based target to reduce environmental data system, which Zealand since 2017. and that of our value chain. our Scope 3 emissions by 30% by 2030, measures our carbon footprint and as compared to our 2019 baseline. tracks carbon reduction. Environmental To achieve this, we are engaging with performance is reviewed as part of key suppliers to understand what broader business performance reviews causes these emissions and to identify and through internal consultation – opportunities for reducing them. including site-based environmental Two of our flagship team meetings and collaboration on To bridge the gap of emissions we meeting targets set out in sustainability brands are certified are not able to reduce, we partnered Sustainable Development Goals scorecards. Climate outcomes are also with Tasman Environmental Markets carbon neutral: Fat factored into some business unit goals Our direct emission reduction initiatives (TEM) in 2020 to offset the remaining and achievement outcomes such as included biogas, rooftop solar, efficient Tire in the United emissions to achieve certified carbon supply chain. equipment and renewable power States and Steinlager neutral organisations in Australia and purchase agreements, and align to New Zealand. SDGs 7 (Target: 7.1) and 9 (Target: 9.4). NSW Solar Farm supporting renewable PPA. in New Zealand. Lion Sustainability Report 2020 19 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste Environment& diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m Climatem changem

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C C C Safety, Water Safety, C Water Safety, Water Safety, Water Lion is an anchor partner in the world’s health & security health & security health & security (continued)health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality first industry scale aggregated Power R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili Purchase Agreement (PPA) with the Australian Hotels Association NSW Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption and Engie – allowing pubs in NSW to Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement bypass expensive retail energy prices, & human rights & human rights & human rights & human rights whilst reducing carbon emissions at Lion’s biggest brewery – the Tooheys Highlights Performance2 Brewery – by 40%. We have pooled our energy needs in Through Lion’s Carbon Neutral Achieved a 28% absolute NSW with the needs of participating Strategy, we reached the reduction in our carbon NSW hotels, accessing solar power following proud milestones: footprint since 2015, putting from regional NSW in what is a win Lion has committed to a net zero us on track to meet our for the industry, the economy and the value chain (Scopes 1, 2 and 3) carbon reduction target environment. 1 of 55% by 2030. Lion Australia by 2050 . Fat Tire Amber Ale becomes Lion became Australia’s Improved our GHG emissions intensity from 130 kgCo e/kl in America’s first certified achieved a significant first large-scale carbon 2 2019 to 106 kgCo e/kl in 2020. Steinlager became New reduction in Scope 2 neutral brewer in April 2020; 2 carbon neutral beer carbon emissions complementing our ambitious Over 92,000 tonnes offset In August 2020, New Belgium Since the inception of Fat Zealand’s first large-scale carbon reduction programme through Climate Active- Brewing announced its flagship Tire Amber Ale in 1991, New beer brand to achieve Toitū for NSW due to the with certified carbon credits certified shared value Fat Tire Amber Ale had earned Belgium has worked to cut 100% renewable Power that offset our remaining orientated projects and the carbon neutral accreditation. its environmental impact by carbon zero certification organisational footprint. Toit ¯u carbon zero certification. This made it the first nationally producing renewable electricity To reach this significant milestone, Purchase Agreement distributed beer to achieve this onsite and donating $17 million we focused on reducing emissions commencing in The New Zealand business also milestone in the United States to climate and environmental throughout Steinlager’s product became a carbon neutral certified and raises the bar for the entire advocacy. To avoid living in a lifecycle – from growing the hops January 2020. This organisation in early 2021. brewing industry. world where a six-pack of beer and barley, and brewing the beer, costs $100, Fat Tire’s goal is to to packaging and transport. While has eliminated almost To raise awareness and drive 100% renewable Power inspire other industries to act working with suppliers and customers action in the industry, the team all Scope 2 carbon Purchase Agreement in NSW now to ensure a sustainable is the preferred method to drive was not afraid to make a splash. commenced, reducing emissions 28% future for all. down carbon emissions through emissions from Lion On International Beer Day, by over 15,000 tonnes. our products’ lifecycle, areas that absolute reduction in our retailers in several markets Australia in NSW, cannot be reduced are offset by two On-site solar electricity carbon footprint since 2015 voluntarily increased the price of with the exception of key initiatives: a forest regeneration Fat Tire six-packs ten-fold to $100. generation at XXXX, removing project in the South Island and a our York Street office. The move was designed to spark approximately 944 tonnes of renewable energy project in India. carbon emissions. customer attention around the growing agricultural disruptions caused by climate change, 1. Lion has followed the forward offsetting methodology developed by the Climate Active Standard. The offsets which may make many goods have been retired in March 2020. unaffordable. 2. Performance data applies to all sites in Australia, New Zealand and North America. Lion Sustainability Report 2020 20 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste Environment

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

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o o n o o Why is it important How we manage How we stay t t t t

C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality Water security for Lion? water security on track Re Re Re Re sp lity sp lity sp lity sp lity onsibi onsibi onsibi onsibi Clean water is the key ingredient and quality A verifiable set of data and targets Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible in our products and underpins the are essential to improving our water labelling consumption labelling consumption labelling consumption labelling consumption & quality Water stewardship constitutes one of Sustainable Sustainable Sustainable Sustainable long-term success of our business. stewardship. Lion has set short- and procurement procurement procurement procurement the four pillars of our environmental & human rights & human rights & human rights & human rights Ensuring the short- and long-term medium-term targets for its large quality and security of water is not just sustainability strategy, and we are breweries, which include: Lion views water as our most precious resource and a key priority for our business – it is a committed to implementing best practice water stewardship in our • a water efficiency target of manages it accordingly. In 2020, we continued to material risk for our suppliers and the <2.4 L/L by 2025. communities in which we operate. supply chain. This includes: invest in water efficiency initiatives, reduce our water • achieving best practice efficiency To ensure our efforts translate into usage and manage our operations to minimise risk to levels for water use within our own improved water quality and security for breweries, the business and local communities, Lion natural waterways. • improving the quality of wastewater holds monthly, quarterly and annual we discharge, and reviews to track progress against our targets. Progress is tracked from our • monitoring water use in the sourcing breweries, right up to senior leadership of our raw materials. and the Board. In 2020, Lion continued to focus on ongoing water management without compromising the quality and high standard of the water we use in our products. Our commitment to reducing our water use is shared by many – from the engineers keeping our equipment functioning efficiently and continually seeking better ways to operate, through to the central supply chain teams improving our raw material sourcing.

Sustainable Development Goals Our ongoing efforts to improve the quality and security of water for our business, communities and suppliers align with SDG Targets 6.4 and 6.b. Lion Sustainability Report 2020 21 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste Environment

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v n ir n ir n ir n ir u o u o u o u o n n n n 10% m m m m m m m m Water security & quality

m e m e m e m e

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o o n o o savings in water used in The

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C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security (continued) Pride brewery in Auckland. wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights Highlights Performance 7% improvement in water In 2020, our five largest efficiency achieved in The Pride manufacturing sites achieved an brewery in Auckland. efficiency measure of 3.7 litres of water used for every litre of 10% savings in water used in packaged product against an The Pride brewery in Auckland. annual target of 3.4 L/L. Our total water usage across The Pride brewery in all sites in Australia and Auckland achieved New Zealand in 2020 was 3,144,662 kL, compared to a 7% improvement 3,456,654 kL in 2019. in water efficiency, The water efficiency target through a rapid and currently applies to our five focused response largest breweries across Australia and New Zealand to Auckland’s first which account for over 90% drought in 25 years. of our water usage. Our water Water saving initiatives in New Zealand efficiency performance was In April 2020, local catchment dams • creating a platform to raise The outcome from this focused lower than expected in 2020 dropped below 50% capacity in awareness on the issue in the response was positive. In addition to Auckland, the lowest in 25 years. broader community, achieving a 10% reduction in overall due to the impact of COVID-19 water usage, The Pride also achieved This prompted Auckland Council to • forming a multi-disciplinary on production volumes which a 7% improvement in water efficiency issue a challenge to businesses in the team that focuses on characteristically leads to for production. The Pride’s success area to cut water usage by a minimum uncovering opportunities, lower water efficiency due to improved the brewery’s operations, of 10%. • monitoring performance increased cleaning and product and provided an opportunity to share and effectiveness of water changes. Given the continued Given that water restrictions are findings with local businesses and the reduction efforts, and focus on water efficiency uncommon in Auckland, The Pride Auckland Council. across the business we remain brewery – our largest brewery and • staying closely connected committed to achieving our multi beverage manufacturing facility with the local water authority. long-term target of 2.4L/L in New Zealand – addressed this by 2025. urgent challenge by: Lion Sustainability Report 2020 22 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

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C C C Safety, Water RespoSafety, C Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili Acting responsiblyponsibili as an alcohol ponsibili ponsibili Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption producerlabelling is foundationalconsumption to ourlabellin g consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights social licence& human rights to operate. This pillar & human rights & human rights ensures we produce, market and label our products in line with our values and community standards, and guides how we protect human rights in our supply chain.

38,651 alcohol-free modules completed in our Number one selling alcohol-free Alcohol&Me programme beer in Australia is Heineken® 0.0

Lion Sustainability Report 2020 23 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste Responsibility& diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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t Why is it important How we manage How we stay

C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality Responsiblewellbeing & quality wellbeing & qualityfor Lion? responsible on track R R R R e y e y e y e y sp ilit sp ilit sp ilit sp ilit onsib onsib onsib onsib Our products are a valued part of the consumption We evaluate our performance in Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible social life of millions of people across the promoting responsible consumption labelling consumption labelling consumption consumptionlabelling consumption labelling consumption Tackling alcohol misuse requires a Sustainable Sustainable Sustainable Sustainable globe, and as such we have an important primarily through the reach and delivery procurement procurement procurement procurement community-wide effort. We contribute & human rights & human rights & human rights & human rights role to play in supporting moderate of education campaigns run by Lion and responsible choices. Through our to this effort in several important ways. and our partner organisations. For The International Alliance for Responsible Drinking growing portfolio of lower alcohol One is by providing our consumers example, DrinkWise produced a series with relevant information they need to and non-alcoholic beverages and our of videos and radio messages featuring (of which our parent company, Kirin, is a member) make better choices about their alcohol commitment to consumer education, we its ambassador, Dr Andrew Rochford. consumption through our websites and defines responsible drinking as ‘… the enjoyment aim to evolve even further the positive The series addressed stress, anxiety Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging labels, as well as supporting education & diversity waste & diversity waste & diversity waste & diversity waste trends in drinking culture. and alcohol consumption during the of alcohol drinks by adults who choose to drink in programmes and partnerships. In pandemic, with a total cumulative reach Our efforts in this space are also an Australia and New Zealand, we Supporting our Climate Supporting our Climate a mannerSupporting our that does notClimate harm othersSupporting and our minimises Climate of 32.5 million. communities E change communities E change communities E change communities E change important statement for our people, partner with leading industry-funded y n y n y n y n it v it v it v it v ir ir risk of harm to their consumer.’ Lion honours this ir n o n o n o n o suppliers and stakeholders (including organisations DrinkWise and Cheers! We track and measure the delivery u n u n u n u n m m m m m m m m

m e m e m e m e customers, local communities, regulators which aim to reduce alcohol misuse of our own education programme,

n n n

o o n commitmento by encouraging the responsibleo sale,

t t t t

C C C Safety, Water Safety, C Water Safety, Water Safety, Waterand governments) about our principles through behaviour change campaigns Alcohol & Me, through attendance health & security health & security marketinghealth & service andsecurity consumption health of & alcohol security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & qualityand expectations. By becoming a and education initiatives. records and surveys. In 2020, we R R R R es ty es ty es ty es ty ponsibili ponsibili while addressingponsibili and mitigating issues relatingpons ibili market leader in innovation across the doubled the number of modules We also work with external lower alcohol category and investing completed through the programme Transparent Responsible Transparent Responsible to harmfulTransparent use. Responsible Transparent Responsible stakeholders to deliver campaign labelling consumption labelling consumption labelling consumption labelling consumption in non-alcoholic alternatives, we (compared to 2019) and had over messages through our brands and Sustainable Sustainable Sustainable Sustainable demonstrate to the community that the 1.2 million views via social media. procurement procurement procurement procurement sponsorship activities to create greater & human rights & human rights & human rights & human rights industry is evolving to meet changing awareness. For instance, we recently In terms of our products, we evaluate social needs and the positive role we can worked with the Sydney Swans to the growth of non-alcoholic and SMASHED campaign play in tackling harmful use of alcohol as deliver DrinkWise branding on footballs low-alcohol portfolios and assess the funded by the industry initiative, part of a whole-of-society approach. at all home games. efficacy of our responsible marketing The Tomorrow Project, and its Finally, as we expand outside our home efforts through our compliance with public-facing consumer brand, To support this education and outreach, markets of Australia and New Zealand, advertising codes. Cheers!, uses live theatre and we maintain strict expectation around it’s important to have a consistent interactive workshops to engage the responsible sales and marketing of Lion NZ also has a strong focus on minimum standard for responsible students in learning about our products. We require our marketing developing the low/no alcohol category. marketing that is publicly available. peer pressure, relationships teams and external marketing agency For some years we have had iconic and the dangers of consuming partners to be trained in responsible brands with low-strength variants like alcohol. The 2020 SMASHED marketing and Lion-specific standards, Steinlager Light (previously Steinlager tour visited 50 schools across to ensure our marketing does not Mid). We have added to the portfolio the country, performing to inadvertently contribute to the with the acquisition of iconic coffee 10,574 Year 9 students. problems of alcohol misuse or excessive brand Havana coffee, the launch of consumption. As we expand in 2020 Lindauer Free, Mac’s 0.5% Stunt Double, and beyond, we are developing a Global and will be adding our first Marketing Code which will provide non-alcoholic beer Speights Summit a framework for addressing future Zero in July 2021. standard changes and applying them across Australia and New Zealand. Lion Sustainability Report 2020 24 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste Responsibility& diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir Bounce Back, a n n n n u o u o u o u o 30% n n n n m m m m Responsiblem consumptionm m m

m e m e m e m e

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o n o o o DrinkWise initiative unique visitors to the

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water“Listening to Bounce Back, and health & security health & security health & security health & security Alcohol&Me online site wellbeing & quality wellbeing & quality (continued)wellbeing & quality wellbeing & qualityhearing how others have overcome R R R R in 2020 than in 2019 es ty es ty es ty es ty ponsibili ponsibili ponsibili ponsibili tough times, might just provide the inspiration you need to stay strong, Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption to stay positive and to stay resilient.” Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement – The Hon Scott Morrison MP, Prime & human rights & human rights & human rights & human rights Minister, Australia. Highlights Performance 30% more unique visitors to 38,651 online modules of Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste the Alcohol&Me& diversity onlinewaste site in Alcohol&Me completed& diversity waste in NZ 2020 than in 2019. during 2020 against a target of Cheers! New Zealand Cheers! New Zealand is a social Supporting our Climate Supporting our Climate Supporting our Climate 30,000.Supporting our Climate communities E change communities E change 2.5xcommunitie mores online modulesE change communities E change change initiative to create a healthier, y n y n y n y n it v it v it v it v ir ir ir ir n o n o completed throughn ouro 158 people trainedn face-to-faceo safer and more responsible drinking u n u n u n u n m m m m m m m m

m e m e education platformm ine 2020 through Alcohol&Mem in 2020e culture in New Zealand.

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C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security thanhealth in& FY19. security againsthealth a target & of 1,000. security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty The increasee ins numbersty to The number of face-to-facees ty ponsibili ponsibili ponsibili ponsibili both our Alcohol&Me website sessions of Alcohol&Me Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption and modulelabelling completionconsumption delivered inlabellin 2020g was impactedconsumption Sustainable Sustainable demonstratesSustainable that more people by COVID-19 lockdownsSustainable so we DrinkWise procurement procurement procurement procurement Making smarter choices with & human rights & human rights are finding their& human rightsway to our were unable to meet& human our right target.s Established in 2005 by Lion and content and are interested to its industry partners, DrinkWise Alcohol&Me learn how to make smarter Advertising compliance: Australia is an independent not-for- How can people make smarter choices It is clear people want to know more. profit organisation aiming to bring while still enjoying the beverages The Alcohol&Me online site had choices related to alcohol. New about a healthier and safer drinking they love? This is the aim of Lion’s 106,714 unique users, a significant Australia Zealand Heineken® 0.0 The Alcohol&Me website was culture in Australia. Alcohol education programme, jump from 61,851 the previous year. Heineken® 0.0 is Heineken®’s a finalist in the 2020 ‘Public Complaints 19 4 www.alcoholandme.org.nz, which We had 38,651 people complete the first alcohol free beer and was Good’ section at the Designers made gives New Zealanders the tools and modules in FY20 – 2.5 times more launched in Australia in 2019. The Institute of New Zealand Best Referrals to 9 4 information they need to stay safe than in 2019. beer has surged in popularity since Awards for design excellence. Complaints and sociable when they drink. its launch as many Australians Board Despite COVID-19 restrictions, seek to moderate their drinking. #1 selling non-alcoholic beer in Upheld 1 0 The online programme is presented we also delivered seven face-to- ® Heineken® 0.0 gives beer drinkers Australia is Heineken 0.0 (no fault as a collection of self-guided learning face facilitated workshops with six more choice, opening up new – now the biggest contributor breach*) experiences, from interactive different paying organisations during demonstrations and quizzes to articles the year. With outreach restricted, occasions for consumption, so to the category, doubling in size *relates to placement of a billboard by a third-party provider consumers can enjoy a great over the last 12 months. containing practical advice. The entire we reinvested allocated funding to platform is free and designed to be innovation and developed a new blog tasting beer but not the alcohol (Source: IRI Packaged Beer, MAT Feb ’21). that comes with it. readily accessible to the public. as part of the website to encourage repeat visitors through new and engaging content.

Lion Sustainability Report 2020 25 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste Responsibility& diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

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t Why is it important How we manage How we stay

C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality Sustainablewellbeing & quality to Lion? sustainable on track R R R R e y e y e y e y sp ilit sp ilit sp ilit sp ilit onsib onsib onsib onsib As a leading beverage company, we rely procurement and The principal way we assess Lion’s Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible on thousands of suppliers to provide us supply chain risk is by requiring our labelling consumption labelling consumption labelling consumption labelling consumption human rights Sustainable Sustainable Sustainable procurementSustainable with raw materials, packaging and other high-priority suppliers to complete a procurement procurement procurement procurement & human rights & human rights & human rights & human rights goods and services to keep our global We set clear expectations for our SEDEX self-assessment questionnaire businesses operating. We believe the suppliers’ sourcing practices and (SAQ) for all sites that supply products scale of our operations provides both reporting – including their human rights and/or services to us. High-priority & human rights an obligation and an opportunity to help suppliers are determined based on our performance, the environment and drive positive change in our supply chain. business ethics. Lion’s Procurement financial exposure to them (i.e. spend), the type of transactions we engage Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging This is accelerated by a number Policy has three core principles: & diversity waste & diversity waste & diversity waste & diversity waste them for, their country of origin and Lion seeks to do the right thing for the long term. of regulatory and industry trends. 1. Building strong commercial outcomes their sectorial rating. This commitment relies on building an ethical, Consumers and our major customers and productive partnerships. Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change are demanding increased transparency We measure our performance through y n y n y n y n 2. Promoting human rights and it v it v it v diverse andit transparentv supply chain to act as a n ir n ir n ir n ir u o u o u o u o around where Lion products come the percentage of these high-priority n n n n ethical sourcing. m m m m m m m m

m e m e m e foundationm for oure operations. To do this, we engage from and how they are made. They suppliers who complete their self-

n n n

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C C C

C 3. Promoting sustainable Safety, Water Safety, Water Safety, Water Safety, Water want to know we have the systems assessment (SAQ). We were proud to health & security health & security health & security withhealth &our suppliers to minimisesecurity their environmental (environmental, social and wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality and processes in place to ensure the meet our target, which was for more R R R R es ty es ty es ty es ty inclusive) sourcing practices. ponsibili ponsibili ponsibili footprint andpon protectsibili human rights. products they buy have not caused the than 95% of selected suppliers to submit exploitation of vulnerable workers and Our Responsible Sourcing Code, their self-assessment. Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption the environment. publicly launched at the end of 2019, Sustainable Sustainable Sustainable Sustainable To support this evaluation, Lion procurement procurement procurement procurement supports the implementation of Lion’s Our industry is responding quickly reserves the right to request or conduct & human rights & human rights & human rights & human rights Procurement Policy. Our Responsible to maintain supply continuity and independent audits (SAAS accredited or Sourcing programme seeks to mitigate an ethical supply chain. Many global BSCI authorised) to verify compliance ethical, environmental, labour and FMCG companies, including our parent with our Responsible Sourcing Code. human rights risks, such as instances company Kirin Group, are signatories of forced and child labour and modern to the Consumer Goods Forum slavery in our supply chain. We produce Resolution on eradication of forced a Modern Slavery Statement to meet labour and slavery. our legislative requirements under the Modern Slavery Act 2015 (UK) and the Commonwealth Modern Slavery Act 2018. We also have strict policies on anti-bribery and corruption, conflicts of interest and protecting privacy, as well as a whistleblower policy.

Lion Sustainability Report 2020 26 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

n n n n

o o o n o o

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste Responsibility& diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m Sustainablem procurementm

m e m e m e m e

n n n

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C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security &health human & rights security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty ponsibili ponsibili ponsibili (continued)ponsibili Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement & human rights & human rights & human rights & human rights

Highlights Performance Member of Supply Nation, 98% of our high-priority Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste WEConnect,& diversity Social waste Traders (i.e., linked) suppliers to establish sustainable risk rated in SEDEX,

Supporting our Climate Supporting our Climate Supporting our Climate relationshipsSupporting our with diverseClimate representing 100+ sites communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v suppliers. it v against a target of 100%. ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e 2019 Modernm Slavery e

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C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security Statementhealth & published in security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R the UK on behalfR of Lion’s es ty es ty es ty es ty ponsibili ponsibili ponsibili Australian andp oNewnsibili Zealand

Transparent Responsible Transparent Responsible Transparent Responsible adult beverageTransparent businesses.Responsible labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable 2020 ModernSustainable Slavery procurement procurement procurement procurement & human rights & human rights & human rights Statement published& human rights in line with Modern Slavery Act UK (2015) and Commonwealth Modern Slavery Act (2018) requirements. 75 high-priority suppliers requested to enrol in SEDEX Bringing social procurement to life based on spend, industry and As well as preventing risks like This includes businesses that are WV Technologies, a company location, representing over 100 potential human rights abuses, driven by a social or environmental supporting Lion to securely and supplier sites. our procurement process is an mission, or that support people who safely dispose of our e-waste opportunity to support the outcomes have traditionally been financially (computers, phones, and other delivered in environment and marginalised. Under-represented hardware), is one example of how this community strategic pillars. To realise suppliers, such as the Indigenous programme is being brought to life. this opportunity, we are implementing business sector (roughly 0.06% of WV Technologies employs Indigenous an inclusive procurement process to the overall business sector) represent people – both in Australia and create a level playing field for diverse a missed opportunity for Lion. As New Zealand – and is a Supply Nation suppliers. a large organisation focused on registered and Social Enterprise championing sociability and helping certified company. people live well, it is our responsibility to address this imbalance. Lion Sustainability Report 2020 27 Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste & diversity waste

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change communities E change y n y n y n y n y n it v it v it v it v it v ir ir ir ir ir n o n o n o n o n o u n u n u n u n u n m m m m m m m m m m

m e m e m e m e m e

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C C C C Safety, Water Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality R R R R es ty es ty es ty es ty Re ity ponsibili ponsibili ponsibili ponsibili sponsibil

Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible labelling consumption labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable Sustainable procurement procurement procurement procurement procurement & human rights & human rights & human rights & human rights & human rights

Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging & diversity waste & diversity waste & diversity waste & diversity waste Responsibility

Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate communities E change communities E change communities E change communities E change y n y n y n y n it v it v it v it v ir ir ir ir n o n o n o n o u n u n u n u n m m m m m m m m

m e m e m e m e

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t Why is it important How we manage How we stay on

C C C Safety, C Water Safety, Water Safety, Water Safety, Water health & security health & security health & security health & security wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality Transparent to Lion? transparent track R R R R e y e y e y e y sp ilit sp ilit sp ilit sp ilit onsib onsib onsib onsib As a company that produces many of labelling Lion complies with all mandatory Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible the alcoholic beverages people know labelling requirements and relevant labelling consumption labelling consumption labelling consumption labelling consumption labelling In 2020, we continued to focus on Sustainable Sustainable Sustainable Sustainable and love, we have a responsibility to industry codes of practice in Australia procurement procurement procurement procurement providing transparent, easy-to- & human rights & human rights & human rights & human rights provide accurate information about and New Zealand that we are a our products to support responsible understand labelling on all of our signatory to. Full details of these codes Transparent labelling underpins our commitment drinking. By making it clear what’s inside packaging. Our global and in-market can be found on our website. our products, where they come from codes set the standards for this, and to building a positive drinking culture. Lion To monitor labelling, we have and how they are produced, we can help ensure we meet existing mandatory and established an internal dashboard focuses on providing consumers with accurate consumers make informed decisions. industry standards. Beyond regulatory Inclusion Packaging Inclusion Packaging Inclusion Packaging Inclusion Packaging requirements, our transparent labelling to review and approve artwork on & diversity waste & diversity waste & diversity waste & diversity waste and easy-to-understand information, including Changing preferences also emphasise initiatives are guided by voluntary products, as well as store approved the importance of transparent labelling labelling measures, including the artwork documents. Our legal team Supporting our Climate Supporting our Climate Supporting our Climate Supporting our Climate nutritional values, calorie intake, alcohol content, communities E change communities E change communities E change communities E change – consumers increasingly want ethically works with the business to ensure that y n y n y n y n ‘Cheers! Logo’ (NZ) and ‘DrinkWise it v it v it v it v n ir n ir n ir n ir pregnancy labelling, guidance on daily intakes, u o u o u o u o sourced as well as low-carb, low-alcohol Logo’ (AUS), and responsible producer any claims made on our products are n n n n m m m m m m m m

m e m e m e m e and non-alcoholic beverages. carefully reviewed and substantiated.

n n n n and marketing commitments, such as o o o o environmental labelling; and when legally

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C C C Safety, Water Safety, C Water Safety, Water Safety, Water health & security health & security health & security health & security voluntary pregnancy warnings. wellbeing & quality wellbeing & quality wellbeing & quality wellbeing & quality required, key ingredients. R R R R es ty es ty es ty es ty Our efforts around transparent labelling ponsibili ponsibili ponsibili ponsibili not only encourage consumers to drink Transparent Responsible Transparent Responsible Transparent Responsible Transparent Responsible responsibly, but also educate them labelling consumption labelling consumption labelling consumption labelling consumption Sustainable Sustainable Sustainable Sustainable about the environmental impact of our procurement procurement procurement procurement & human rights & human rights & human rights Highlights& human rights products. For instance, in New Zealand we launched the first Toitu certified No objections to product carbon zero beer and cider products packaging raised by regulators with Steinlager and The Fermentist. in either New Zealand or The certification logo on these products Australia in FY20. signals to consumers that the carbon footprint has been addressed by either avoiding emissions or mitigating them so Performance that the products are carbon neutral. Compliance with mandatory labelling and relevant voluntary advertising codes: Lion Australia and New Zealand did not have any mandatory labelling matters successfully prosecuted, nor any mandatory labelling matters that resulted in withdrawal of any products from the market. Lion Sustainability Report 2020 28 Contact us

Lion Pty Limited ABN 50 128 004 268

Registered Office Level 7, 68 York Street, Sydney NSW 2000 Telephone: +61 2 9320 2200 Website: lionco.com

If you have any queries specific to this Sustainability Report, please contact Lion’s sustainability team at [email protected]