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Lion Sustainability Report 2020 Contents 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 Australia 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 beer 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 Brewery 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 South Australia 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 Ale 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 Brewing 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 breweries, 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.
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