2011 the report, Tsingtao Brewery Co., Ltd. is referred to as “Tsingtao Brewery” or...

Sustainability Development Report

Tsingtao Brewery Co., Ltd. 2011

About this Report

Report ScopeThis is the fourth annual sustainability report published by Tsingtao Brewery Co., Ltd. The data and information within the report covers Tsingtao Brewery Co., Ltd., its 56 affiliated breweries and 2 malthouses. All the cases of sustainable development mentioned in the report occurred from January 1st, 2011 to December 31st, 2011. Based on the continuity and contrast of the report, some of the data and information provided herein are not only quoted from the year of

2011.

Editorial PolicyThis report is drafted in compliance with the Global Reporting Initiative (GRI) G3, Corporate Environmental Reporting Guidelines of Shandong Province, and the additional guidelines for food and beverage. Also the report is prepared in accordance with SSE Social Responsibility and Disclosure of EP Information Guidelines by the Shanghai Stock Exchange and the relevant requirements by

SASAC on the release of social responsibility report.

Selection of ContentIn terms of content selection, Tsingtao Brewery closely follows the importance, completeness and comparability of the guidelines of G3. From the perspective of economy, society and environment, the report gives a detailed account of Tsingtao Brewery’s responsibility in sustainable development of products, environment, community, employees and business partners. The collection of the data and information in the report proceeds according to the company’s existing working

processes.

Explanation for Short TitlesIn the report, Tsingtao Brewery Co., Ltd. is referred to as “Tsingtao Brewery” or “Company” or “we”. The copyright of this report is owned by Tsingtao Brewery

Co., Ltd.

Publishing MethodsThe report is published in print and online. The online edition is available on the company website (URL: www.tsingtao.com.cn). The report is made in Chinese and English, and when discrepancies occur in understanding the two versions, the

Chinese version shall prevail.

Table of Contents

Sustainable Development Indices of Tsingtao Brewery

Message from the Chairman

Messages from the President

10 Years Sustainable Development

Enterprising Tsingtao Brewery

About Us

02

04

06

08

10

12

Honors in 2011

Third-party Evaluation

Your Feedback

Appendix: GRI Guidelines Index

44

45

47

48

Good Quality ——Let Consumers joyfully drink to their heart’s content

Caring for Nature ——Creating a harmonious Environment

Contributing Love ——Contributing happiness to Society

Harmony Among All ——Sharing happiness and Benefits with Partners on Value Chain

16

20

28

34

Sustainable Development Indices

2008

538

157.81

7.98

32.98

0.6097

2009

591

177.61

12.50

41.61

0.9503

2010

635

196.14

15.20

43.42

1.125

2011

715

227.90

17.38

51.57

1.286

Sales Volume / 10,000 kl

Sales Revenue / RMB 100 million

Net Profit Attributable to Shareholders of the Listed Company / RMB 100 million

Total Tax Paid / RMB 100 million

EPS / RMB

2008

5.93

69.25

75.99

4.15

0.45

2009

5.44

59.70

70.62

3.90

0.37

2010

5.20

56.17

69.46

3.66

0.34

2011

4.94

53.29

67.56

3.56

0.32

Water Consumption per Unit Product / m3/kl

Coal Consumption per Unit Product / kg/kl

Electricity Consumption per Unit Product / KWH/kl

Sewage Discharge Amount per UnitProduct / m3/kl

COD Discharge Amount per Unit Product / kg/kl

Environment

Economic Performance

2008

0.81

2008

196

2009

0.41

2009

110

2010

0.21

2010

52

2011

0.17

2011

46Total Number of work injuries

Number of work injuries / times

Social Responsibility

2

Basic Information01 02 03Good Quality ——Let Consumers joyfully drink to their heart’s content


Sustainable Development Indices of Tsingtao Brewery www.tsingtao.com.cn

Sustainable development is a long-term goal of Tsingtao Brewery. Readers can get to know our efforts, achievements and shortcomings in 2011 through the following indicators. Your support, encouragement and suggestions for our future work are highly appreciated.

Net Profit Attributable to Shareholdersof the Listed Company / RMB 100 million

Total Tax Paid / RMB 100 million

51.57

32.98

41.61

43.42

2011

2010

2009

2008

17.38

7.98

12.50

15.20

2011

2010

2009

2008

CO2 Recovery per kl of Cold Wort / kg/kl Waste Comprehensive Utilization Value / RMB 100 million

1.93

1.07

1.3

1.58

2011

2010

2009

2008

21.90

14.33

17.83

20.52

2011

2010

2009

2008

2008

0.81

2008

196

2009

0.41

2009

110

2010

0.21

2010

52

2011

0.17

2011

46Total Number of work injuries

Number of work injuries / times

Social Responsibility

3

04 05 06 AppendixContributing Love——Contributing happiness to Society



Message from the Chairman

Over the past 109 years, we have been pushing forward self-negation reform and transformation - our concerns shifting from organizational values to social values; our responsibilities shifting from entire supply chain to entire society; and our capabilities from supply-chain management to system management. Therefore, our business practices are aimed at carrying forward the development model of “benefit sharing community (mutual benefit), value-creation community (win-win), and cultural-belief community (common prosperity) with the stakeholders, thereby strengthening our capabilities, expanding our responsibilities and subliming our ideological attainment.

Corporate development is an interaction process in which giving

of responsibility is rewarded by acquisition of credits; making an

enterprise bigger is not only about making its capital bigger, but more

relevantly, about making its responsibility bigger.

Survival of the fittest, just as the jungle law in the nature has revealed,

and likewise, an enterprise needs suitable ecological environment

from which it derives durable and healthy commercial power for its

birth and development. Such power comes from the combination of

shareholders’ money capital, employees’ intellectual capital, and natural

resources capital as well as the social and environmental capital.

The wealth creation of an enterprise is, after the combined investment

of the above capitals, an interaction process of obtaining the

continuous trust and reward from the consumers in return for quality

products and services responsibly given by an enterprise. Just because

we have, apart from money capital, consumed intellectual capital,

resources capital and social capital in the process of accumulating

wealth, we have to fairly and reasonably reward the shareholders,

employees, nature and society in the process of distributing wealth and

such is the social responsibility to be shouldered by an enterprise. If

an enterprise as a social citizen has eyes only for the returns on money

capital, while belittles employee capital, ignores natural capital, and

4




March 2012

Tsingtao Brewery Co., Ltd.

disregards the contribution of social capital to the wealth creation of

an enterprise, fairness is lost herein. A responsible enterprise attaches

equal importance to the efficient performance of wealth creation

and the fair responsibility in wealth distribution. As a matter of fact,

making an enterprise bigger is not only about making its capital

bigger, but more importantly, about making its responsibility bigger;

a “big” enterprise not only needs to be possessed of the “thickness” of

accumulating wealth, but also the “height” of distributing wealth.

Therefore, only if an enterprise fulfi l ls i ts responsibil it ies

conscientiously and steadfastly, can it realize sustainable development.

In this process, as for money capital, we need to deliver our

shareholders a score sheet of our sound operation and good

performance; as for employees’ intellectual capital, we shall let the

employees reasonably share growth and achievements based on mutual

respect; as for social capital, namely the government, value-chain

cooperative partners, or communities, we need to operate according

to law, pay taxes as required, and provide quality products and services

of which food safety has been guaranteed, so as to promote the

development of public welfare undertakings; as for natural capital,

we need to revere nature, cherish environment, develop low-carbon

economy, and realize energy conservation.

Beer comes from nature and is the crystallization of nature. Tsingtao

Brewery sets “brewing passion and creating happiness” as its motto,

and product is its cornerstone. To make good products of high quality

is our relentless pursuit, and such is the “subjective condition”. To

take advantage of opportunities, hold the nature in awe, and seek

the harmonious development of the enterprise and the natural

environment is the “objective condition”. And to form a “mutual

benefit, win-win and common l prosperity” responsibility-based

common thread with the social capital is the “human relations”. Only

when an enterprise accomplishes the “subjective condition, objective

condition and human relations”, can it acquire inexhaustible power for

sustainable development.

In its business practices over one hundred years, Tsingtao Brewery

never ceases for a moment to surpass itself in self-negation, improve

itself with endless innovations, practice the esteemed responsibility

culture and business philosophy, and bring about sustainable growth,

and realize “mutual benefit, win-win and common prosperity”

together with stakeholders. Such is the source of power for enterprise’s

sustainable development, as well as the maxim in line with business

ethic in any era.

Over the past 109 years, we have been pushing forward self-negation

reform and transformation - our concerns shifting from organizational

values to social values; our responsibilities shifting from entire

supply chain to entire society; and our capabilities from supply-chain

management to system management. Therefore, our business practices

are aimed at carrying forward the development model of “benefit

sharing community (mutual benefit), value-creation community (win-

win), and cultural-belief community (common prosperity) with the

stakeholders, thereby strengthening our capabilities, expanding our

responsibilities and subliming our ideological attainment.

In 2012, my team and I will as always be committed to conscientiously

bringing glory and dream to our stakeholders, and making Tsingtao

Brewery’s contribution to the increasing competitiveness and national

pride of China.

Chairman

Jin Zhiguo

5




Messages from the President

In 2011, global economy dialectically advanced in “variant” and

“invariant”, and a new picture of the world economy enjoying a

balanced and stable development is not clear as yet. Nevertheless, as

an active participant in economic integration, Chinese enterprises

including Tsingtao Brewery are striving to seek the self-confidence

and solutions in the midst of uncertainty, search the well-suited new

business models, redefine and adjust the development pace. And in

this process, a sustainable, healthy and aspiring commercial power is

contained.

In the past year, as far as business operation is concerned, Tsingtao

Brewery held fast to good quality, actively expanded market, enhanced

President Sun Mingbo (the fifth from the left in the front row) and senior executives

brand image, magnified responsibilities, and brought about the

value maximization for commercial customers and social customers

by means of material benefits. We paid close attention to consumer

satisfaction, treated employees well, created win-win for the upstream

and downstream of value chain, rewarded the shareholders and

investors, and did pay back the society, community and general

public. Moreover, a sound growth model was established to bring

sustainability of environment and society into the core of business

operation and corporate culture.

In this year, Tsingtao Brewery passionately extended its business to

many cities, its “National Campaign” territory continued to expand,

6




March 2012

Tsingtao Brewery Co., Ltd.

and the first overseas factory in beer industry was set up in Thailand.

We signed contract with China’s champion team starring Liu Xiang

and Yi Jianlian to co-construct the Chinese Pride in 2012, and

cooperated with a star team - Miami Heat in upgrading its sports

marketing strategy, enabling Tsingtao Brewery to drink a toast to the

world as a major participant in the new world order. Furthermore,

through “mutual benefit, win-win and common prosperity” with the

upstream and downstream of value chain, Tsingtao Brewery sought to

foster green and sustainable competitiveness, and play an exemplary

role as the industry leader with “responsibilities” on its shoulders.

To produce high-quality products is the most primary core social

responsibility of Tsingtao Brewery. With quality-orientated principle,

quality management system, all-round taste & evaluation, third-party

food safety centralized detection mechanism, as well as R & D, we

institute a three-dimensional quality management system which ensure

the food safety of the entire beer-production industry chain and the

consistency of product taste, realizing Happy Drinking for Consumers.

Tsingtao Brewery adheres to the simple environmental concept

that “good intentions will bring good returns”. We promote the

construction of a benign social & ecological system, let the consumers

enjoy our green products, and benefit from our Green Value Chain.

In 2011, Tsingtao Brewery invested RMB 24.2 million in construction,

renovation and maintenance of environmental-protection facilities,

practiced the “low-carbon operation mode”, and made all-round

adjustment to technology R&D, product design, production &

manufacturing, as well as marketing channels, so as to enhance the

enterprise’s carbon management capability and carbon asset value.

We are be deeply convinced that the growth in wealth of an enterprise

comes from consumers and investors’ recognition and favor of its

brand and products, therefore, the enterprise shall reward the society

and value chain, and actively perform its social responsibility. In

this connection, “mutual benefit, win-win and common prosperity”

with the upstream and downstream of value chain as well as the

stakeholders have enabled Tsingtao Brewery’s relationship with its

business partners to be of not just a business cooperation, but more of

a “common thread” built on responsibility.

Tsingtao Brewery not only provides general consumers with high-

quality products and quality services but also is, while making the

enterprise bigger and stronger, dedicated to the development of

philanthropy and public-welfare undertakings. We incessantly finance

needy children, set up educational fund, care for community and

general public, and send warmth to those who need help. Tsingtao

Brewery wishes to increase the “Happiness Index” of stakeholders

through fulfillment of responsibility and dissemination of love.

It has been our persistent pursuit to make the best quality products and

become an international company with a brand of global influence,

and the power of such persistence comes first from the great efforts

and enterprising spirit of the 40, 000 employees of Tsingtao Brewery.

In 2011, we set up the “Employees Care Fund”, and when employees or

family members got into trouble due to serious illness or disease, the

fund assistance program will be initiated to help them out, so that the

employees will regard the enterprise as the most powerful patron as

warm as “home”, ensuring happiness of employees.

In 2012, no matter how the world situation may change, Tsingtao

Brewery will, by virtue of the sound and sustained growth model and

the healthy and sustainable commercial power, work diligently, advance

with the times, and keep forging ahead in a pioneering spirit!

Presiden

Sun Mingbo

7




Sales Revenue Brand Value Net ProfitAnnual Output & Sales Volume

At the beginning of 2012, in the latest issue of Harvard Business Review, an article entitled How do Enterprises Realize Steady Growth published the findings of Rita Gunther McGrath, a professor of Business College, Columbia University: She adopted “10 years” and “5% growth rate” as two conditions in screening the 2347 global companies with a market value above USD 1 billion. Finally, she came to find only 10 companies, in which Tsingtao Brewery is the one and only company from China and meanwhile the most time-honored on the ranking list.

Sustainable Development of 10 Years

Professor of Business College, Columbia University Rita Gunther McGrath

2001 2002 2003 2004 2005

8 Sustainable Development Indices of Tsingtao Brewery www.tsingtao.com.cn

Over the past 10 years, the beer sales of Tsingtao Brewery, a Chinese company, has risen from 1,840,000 kl to 6,350,000 kl, growing year on year by 245%; its sales revenue has risen from RMB 3.76 billion to RMB 19.61 billion, growing year on year by 422%; net profit has risen from RMB 0.16 billion to 1.52 billion, growing year on year by 850%; brand value has risen from RMB 6.71 billion to RMB 50.258 billion at present, growing year on year by 649%. Tsingtao Brewery has taken on a highly favorable development trend in which the growth rate of profit is continuously higher than that of sales revenue and the growth rate of sales revenue is higher than that of sales volume.

20102006 2007 2008 2009

9Sustainable Development Indices of Tsingtao Brewery www.tsingtao.com.cn

In Oct. 2011, Tsingtao Brewery officially set up a factory in Thailand, and such responsibility expansion development pattern characterized by “integrating capital, integrating wisdom, integrating resources, and integrating culture” pioneered the China’s beer industry.

Thailand

Enterprising Tsingtao Brewery

10 Sustainable Development Indices of Tsingtao Brewery www.tsingtao.com.cn

By the end of 2011, Tsingtao Brewery Co., Ltd. altogether has

breweries and 2 malthouses in 18 provinces and cities and autonomous regions of China.

56

In 2011, Tsingtao Brewery increases its production capacity by 2,100,000 kl. 5 bought out or newly-built projects: bought the Hangzhou Xinanjiang Beer Co., Ltd and Shaoguan Vitality Beer Co., Ltd; built the Guangdong Jieyang project, the Thailand project, and the Hainan project;

8 relocated or expanded projects: Suqian, Wuwei, Langfang, and Harbin Brewery relocation projects, malthouses relocation; Xinyinmai, Hangzhou and Chengdu expansion projects.

China

11Sustainable Development Indices of Tsingtao Brewery www.tsingtao.com.cn

About Us

Profile

Tsingtao Brewery Co., Ltd. (hereinafter referred to as “Tsingtao Brewery”) was formerly known as the Germanic Brewery Tsingtao Company which was established by German and British businessmen in August 1903. Tsingtao Brewery is the oldest brewery in China and was also the official sponsor of the 2008 Beijing Olympics. The current brand value is 50.258 billion, making Tsingtao Brewery the top Chinese brewery among the world’s top 500 brands.

In 1993, Tsingtao Brewery went public on the Hong Kong Stock Exchange and the Shanghai Stock Exchange respectively, making it the first mainland Chinese company listed simultaneously on two stock markets. After numerous strategic mergers and acquisitions, purchases of insolvent companies, reorganization, and joint-venture partnerships, the company already has 56 breweries and 2 malthouses in 18 provinces, municipalities and autonomous regions by the end of 2011.

Tsingtao Brewery’s products are sold in over 70 countries and regions. According to the Barth Report, the authoritative report on global industries, Tsingtao Brewery was ranked the world’s sixth largest brewery in terms of output. Moreover, Tsingtao Brewery has won almost all the gold medals in beer quality contests in China since the founding of new China in 1949. It has also won gold medals many times in contests held around the world.Listed into “Top 100 China Green Companies 2010” and “Top 100 China CSR Companies”; in 2011, Tsingtao Brewery appeared on Fortune magazine for the sixth time, and won the laurels “Most Admired Chinese Companies”, “Green Gold Environment Award”, “International Carbon Gold Award”, “10-year Achievement Award for the Most Respected Enterprises in China”, and “Best Corporate Citizenship”.

In 2011, the company made outstanding achievements with annual sales revenue and net profits hitting record highs, remaining first on the ranking list of profitability in China’s beer industry.

Company Vision

To become an international company with an influential brand.

Company Mission

Applying our passion to brewing beer loved by consumers, to create happiness for life.

Company Tenet

People oriented TeamworkBenefit the society

Brand Strategy

Tsingtao Brewery implements the

“1+3” brand strategy to meet consumer

demands on different levels.

12




Independent D

irectors N

on-executive D

irectorsExecutive D

irectors

Corporate Governance

The current corporate governance structure of the company consists of shareholders, the Board of Directors, the Board of Supervisors, and Senior Management whose duties include clearly defined roles and responsibilities, and maintaining an effective balance of power and independent operation. Also the company is one of the examples of good corporate governance on the Shanghai Stock Exchange.

Strictly complying with national laws and regulations.Maintaining a sound management system that guarantees the sustainable development of the company.The following rules ensure the company’s sustainable development: 1.Rules of Procedures of The Shareholder Meetings; 2.Rules of Procedures of The Board of Director; 3.Rules of Procedures of The Board of Supervisors; 4.Decision-making Process on Major Issues; 5.Conference System of the President’s Office Ensuring that the information disclosure is transparent and true is the embodiment of a company’s fulfilling its corporate social responsibility.

Group photo of 7th Board of Directors

Decision-Making Supervision of the Strategic Matters

Strategy Management

Decision-M

aking Supervision of the O

perating Matters

Operation Layer

Manufacturing Center

Board of Supervisors

Shareholders Supervisors

Employees Supervisors

Corporate Governance Structure

Board of Directors

Auditing and Financial

Committee

Strategy and Investment Committee

Corporate Governance and Compensation

Committee

Marketing Center

13




Risk ManagementWe believe that an enterprise needs regular check-ups to ensure its healthy development just like human beings do. The risk management of Tsingtao Brewery is a “self health care”, which focuses on precautions, that is, to guarantee the healthy development of the company through risk identification and prevention.

In 2011, the company carried out a comprehensive risk assessment to identify the main internal and external risks of the company and carried out tracking management of the risks by means of Risk Assessment Report and Risk Response List. Meanwhile, the company carried out risk management in professional fields including corporate strategy, food safety, finance and IT, and actively promoted its subsidiaries to carry out risk assessment. The sound risk & internal control mechanism ensures legal compliance in business operations and asset securities.

Business Ethics and Personal Integrity We comply with all laws and regulations, company policies and procedures as well as common moral principles and values. We strengthen corporate governance so that all employees and partners in our value chain observe business ethics, to promote the implementation of common ideas and business ethics of Tsingtao Brewery value chain.

Personal integrity is the key to management of employees’ business ethics. In 2011, the company continued implementing education, system building and supervision, gradually improving the internal accountability system and the Punishing and Preventing Corruption System, establishing a sound monitoring network and complaints mechanism, strengthening power controls and supervision, and promoting the operators and managers to perform their duties legally and compliantly.

Group Photo of 7th Board of Supervisors

14




Our Partners Stakeholders Our Responsibilities and Undertakings

Consumers Provide safe and high-quality products and services

Environment Save energy and protect water resources in order to deal with climate change and develop a cyclic economy.

Investors Steady operation, provide reasonable and sustainable payback; disclose the information regarding the operations and major issues in a timely and accurate fashion.

Employees Provide a safe workplace, competitive rewards and opportunities for health and career development

Business Partners Cooperation and common development based on good faith

NGO and Communities Contribute to the harmonious development of the communities and participate actively in public benefit activities

Government Abide by all laws and regulations and pay tax in accordance with the law.

Sustainable Development

Concept of Tsingtao Brewery

Economy

Environment

Environment

Society

ConsumersEmployees

Partners

InvestorsNGO and Communities

15




Good Quality —— Let Consumers joyfully drink to

their heart’s content.

quality testing points

1800unified quality control standards

6State key basic research programs ("973” program)

Undertaking

2

16

01 02 03Good Quality ——Let Consumers joyfully drink to their heart’s content



Basic Information

To guarantee product quality and be responsible for the consumers is the most primary core social responsibility of an enterprise, and it is also an everlasting commitment that Tsingtao Brewery has made to the general consumers. Excellent quality has been our pride and the cornerstone to keep Tsingtao Brewery evergreen.

Quality orientation principle, quality management system, all-round taste & evaluation, third-party food safety centralized detection mechanism, as well as R & D have constituted Tsingtao Brewery’s three-dimensional quality management system, which ensures the food safety of the entire beer-production industry chain and the consistency of product taste.

By the end of 2011, 56 factories of the company have passed the external authentication of Food Safety System, implementing all-coverage management over all the products branded as Tsingtao Beer.

Quality Persistence over a Century

Provincial & Ministerial-level Prizes for Progress in Science and Technology

Winning

3

National-level Beer Taster Zhu Lei, an employee of the 2nd Factory of Tsingtao Brewery

17

0604 05 AppendixContributing Love——Contributing happiness to Society



The company strictly complies with international, national and local laws and regulations.

The company implements comprehensive hazard analysis and risk assessment on raw materials, production, packaging, storage, transportation and other processes and identifies the source of the risks and hazards which need be controlled in order to provide consumers with safe and high-quality beer.

Food Safety Policy

Internal food safety standards are higher than national standards.

Food safety indicators are in line with the US FDAEU Food Safety DirectivesJapanese Food Industry Standards

01 02Water

Every drop of water we use has to go through 7-level treatment and more than 50 rigorous tests.

Our water source goes through microbial inspection every day and water quality analysis every week.

On the job site, we taste the water for brewing every 2 hours, to ensure its pureness.

Raw Materials

Standardized quality control system which passed international certification. Every bottle of beer goes through the strict control through more than 1800 quality testing points.

Whole-process purified brewing and aseptic packaging.

Regularly providing special yeast species to all factories, and let the fragrance of yeast pervade every drop of Tsingtao Brewery.

Real-time quality tracking and monitoring within all affiliated factories to ensure standardized and unified quality management.

Let taste & evaluation run through the entire brewing process, and all the materials in contact with the beer, even the bottle cap and diatomite have to be evaluated palatably by mouth.

Production

Malt, Rice and Hops

Full and bright-colored barley of high quality is chosen from home and abroad.

Fresh rice within 3 days after being hulled is used, and all the raw materials shall be provided with a quality assurance “ID Card” according to food safety requirements.

Strict on-site sampling inspection and implementing a “safety veto system” in the purchasing process.

Leading Technology Striving to become the pace-setter in brewing technology of Chinese beer industry

If technological innovation was the engine, basic research would be the fuel. “Beer Bio-fermentation Project” State Key Laboratory will establish the first-rate basic applied research platform in China, and provide prime power for technology development of beer industry.

We have the one and only State Key Laboratory in beer bio-fermentation, and by virtue of the “State Key Laboratory for Beer Bio-fermentation Project”, Tsingtao Brewery Co., Ltd undertakes the historical mission of improving the technological level of Chinese beer industry and promoting the industry upgrading. In 2011, the laboratory mainly developed and popularized four internationally advanced new technologies, namely the super high-end beer brewing technology, super high-gravity brewing technology, quick fermentation technology, and new heat-wave boiling technology, contributing to Chinese beer industry in improving product quality, lowering cost, enhancing production capacity and reducing energy consumption.

Chief technician of Qingdao City Technical expert of Qingdao CityWorkshop-section chief, Brewing department, Tsingtao Brewery Yu Jianghong

Assistant to Director, Technology Department Business manager of technical management

EngineerWang Yuncen

Plaque of the State Key Laboratory

the Codex Alimentarius of United Nations and other laws and regulations.

18




Basic Information

Organizational Structure and Operating Procedure

Food safety strategic planning

Food safety management information system

Food safety monitoring capability

Food safety management standard

Food safety managem

ent system

Food safety staff development

Core

com

petencies of food safety management

Corporation Strategy

Tsingtao Brewery takes safety control of beer as its top priority in strategic management and quality control, and has established a perfect food safety guarantee system comprising of food safety strategic planning, food safety management system, food safety monitoring capability and food safety staff development.

In 2011, the company newly established a third-party food safety centralized detection mechanism specially for the brewing raw materials and the packaging materials in direct contact with wine, ensuring that the food-safety compliance rate reached 100%, guaranteeing food safety of the entire industrial value chain, and realizing the closed-loop control process of food safety.

Food Safety Management

03 04I mplementing str ic t logist ics quality standards with standardized management of transportation, handling and storage.

We apply “freshness management” to logistics, and “deliver the beer just as flowers are delivered”.

Follow the “Green Logistics” concept to reduce its adverse impact on the environment.

Logistics

We promote moderate and rational drinking habit.

We have a widely-covering service network, unified service standards, standardized and smooth customer service.

We reserve samples for the beer on every production line every day, and regularly taste and evaluate the beer within shelf life.

Sales, after-sale services

We attach great importance to R&D and promotion of new products and new brewing technologies. We introduce beer with different flavors depending on the preferences of different consumer groups. For example, Orkut and Yipin Pure Draft Beer catering to high-end consumers, and the zero-alcohol beer fit for drivers.

We have the State Key Laboratory of Beer Fermentation, the one and only state key laboratory in beer bio-fermentation.

We are the technological leader in the beer industry through expanding the scale and investment of our R&D team and providing strong technological support for quality technical management for the company.

Carrying out regional Consumers Taste Tests, to select “The Most Favored Tsingtao Brewery by Consumers”.

05 Product Development/Consumers Taste & Evaluation

Zhao Quan, an employee of Customer Service Center, Tsingtao

Brewery

Li Junsu, an employee of Tsingtao Brewery

Zhao Yuxiang, microbiological researcher & developer

Bai Huping, an urban resident in Tsingtao City tastes Tsingtao Beer as the representative of consumers

National-level brewing crew behind a cup of Tsingtao beer

At present, Tsingtao Brewery boasts four “Chinese Brew-masters”, the highest honorary title in Chinese brewage industry, accounting for nearly 1/3 of national-level brew-masters who have won this title in the entire Chinese beer industry. There are 5 experts enjoying special allowance from the Chinese State Council, 1 Taishan scholar, 14 national-level beer tasters, 71 provincial and municipal model workers, 13 provincial and municipal chief technicians, 16 company-level chief technicians, and 136 senior technicians.

19




Organizational Structure and Operating Procedure

Food safety strategic planning

Food safety management information system

Food safety monitoring capability

Food safety management standard

Food safety managem

ent system

Food safety staff development

Core

com

petencies of food safety management

Corporation Strategy

Caring for Nature —— Creating harmonious Environment

Tsingtao Brewery has been adheres to the simple environmental concept that “good intentions will bring good returns”. Application of energy-saving and environmental- protection new technologies, improvement of enterprise system, and practice of Green Value Chain will eventually yield Green Profits. We promote the construction of a benign social & ecological system, let the consumers enjoy our green products, and benefit from our Green Value Chain.

Listed as one of the first national “Resource-saving and Environment-friendly” demonstration enterprises in 2011, Tsingtao Brewery has been optimizing and improving its environmental-p ro te c t i o n m a n a g e m e nt, c a r r y i n g fo r wa rd energy-saving and environmental-protection new technologies, and applying new processes. The company expanded the scope of its environmental-protection management, strengthened the source control and process management of sewage, desulphurization, and odor processing, improved its institutional system, and pertinently carried out environmental-protection training and best-practice exchange activities, and significantly i m p r o v i n g t h e c o m p a n y ’s e n v i r o n m e n t a l performance. The up-to-standard rate of the company’s pollutant discharge is 100%, and the reducing rate of unit COD and SO2 emissions is respectively 5.88% and 13.64%.

20

01 Good Quality ——Let Consumers joyfully drink to their heart’s content

Caring for Nature ——Creating a harmonious Environment 02 03


Basic Information

5.18%Coal Consumption per Unit Product reduced

5.00%Water Consumption per Unit Product reduced by than 2010

6.70%Recovery rate of CO2 Per kl of Cold Wort increased by

0.193 billion

Waste comprehensive utilization value in 2011 reached RMB

than 2010

bythan 2010

21

Appendix06Contributing Love——Contributing happiness to Society

Harmony Among All ——Sharing happiness and Benefits with Partners on Value Chain 04 05


Water Conservation

Water is the source of our lives, lifeblood of industries, and lifeline of the cities. Whether in individual life, corporate development or social progress, water conservation is the key to implementing the strategy of sustainable development. And we have been practicing and doing a good job in source reduction, process control, advanced treatment, and multistep utilization. In 2011, Tsingtao Brewery continued to take a variety of effective water-saving measures, such as recycling of condensed water, comprehensive utilization of saccharified hot water, recycling of overflow water from bottle washing machine and sterilization machine, water reuse, as well as increasing the reverse osmosis water rate, and popularized such measures among its more and more affiliated factories.

While the company’s beer output keeps increasing year after year, our unit water consumption is on the decrease year by year. Our goal for 2012 ——Water Consumption per Unit Product drops to 4.85m3/kl.

Environmental Management Mechanism

We adopted protection of water resources, energy management, coping with climate change, and utilization of waste as resources as the priorities of company’s environmental management strategy, kept improving the organizational structure of environmental management, practiced standardized configuration of environmental-protection positions, implemented the environmental-protection position responsibility system, specified that the general manager was the first person responsible for the factory’s environmental-protection management, detailed the evaluation system for environmental management, and adopted one-vote veto for environmental incidents. By the end of 2011, 37 factories passed the environmental management system certification, and it’s planned that all the factories of the company would pass the environmental management system certification in five years.

In 2011, 6 sessions of environmental-protection management tainting were held, and the trainees totaling 660. We invested a special fund of RMB 24.2 million in upgrading, renovation and maintenance of environmental-protection facilities, and fundamentally ensuring the proper functioning of hardware facilities.

Water Resources Protection

715

543590

640

Output of BeerUnit: 10,000 kl

2011

2010

200

9

200

8

4.94

5.935.44

5.20

Water Consumption per Unit Product Unit: m3/kl

2011

2010

200

9

200

8

Environmental-protection Investment

In 2011, the company invested RMB

24.2 million

Environmental goal & responsibility coverage rate

100%

22




Basic Information

Zhuhai Company adopts combination processes of pretreatment+CLR+A2O for sewage treatment. CLR is the third-generation high-efficiency anaerobic reactor developed on the basis of UASB reactor, and it can be regarded as the series connection of two UASB reactors. CLR covers little area and needs little investment, its rising rate is 2 - 10 times higher than traditional process, and has higher efficiency. A2O process is also known as A-A-O process, and is the abbreviation of biological denitrification and dephosphorization. Its retention time is less than traditional process and has incomparable advantage with respect to denitrification and dephosphorization.

Refined Management of Wastewater

The company implements refined management for wastewater, and adopts advanced technological processes, thus the rate of online-inspection equipment configuration reaches 100%, and the key points are controlled in a standardized and unified way. As required by national laws and regulation, the company formulated the inner quality standard for factory’s sewage discharge, implemented standard configuration for equipment for sewage testing, and also integrated sewage assay into the unified QA management of the company, ensuring that the factory’s sewage discharge is 100% up to standard.

The company implements recycling and reclamation o f o v e r f l o w w a t e r o f bottle washing machine, a n d u t i l i z e s c l e a n i n g e q u i p m e n t , v a c u u m -pump water closing, bottle stra ining machine and bottle washing machine for cyclic utilization. In 2011, the company ’s average water consumption for p a c k a g i n g i s 2 . 0 1 m 3/k l , r e d u c i n g b y 6 . 1 % compared with 2.14 m3/kl in 2010.

Preventing scale formation of reverse osmosis membrane is the most effective way to increase water yield. The factory ensures the water temperature is over 20°C by increasing multi-media f i l t r a t i o n a n d p re c i s i o n f i l t rat ion before reverse o s m o s i s , a d d i n g s c a l e inhibitor, and increasing c l e a n i n g f r e q u e n c y o f reverse osmosis membrane. A s a r e s u l t , t h e r a t e o f reverse-osmosis water yield increased by 3.5%, and the annual water conservation was 450,000 m3.

Water storage tank &

pumping w

ater tank

Cut-off of hot water storage

1.1 KW pipeline pump

1.5KW pipeline pump

Bottle washing machine

Cut-off of clean water storage

7.5KW centrifugal pump

DN 20 magnetic valve

Recycled water tank

Water

storage tank

Case Case

Refined Management of Wastewater

The diagram shows a CLR reactor, it is the third-generation high-efficiency anaerobic reactor developed on the basis of UASB, it adopts a large diameter height ratio to increase flow rate of upflow, covers less area and is of higher removal efficiency.

Case

23




Solar-panel street lamps collect solar energy in daytime, which is transformed into electric energy for lighting at night. Tsingtao Brewery has extensively applied such lamps in the newly-built factories.

Energy Management

1.9

2.6

4.36

2.23

Standard coal saved year on year Unit: 10,000 ton

2011

2010

200

9

200

8

1293

3088

2630

746

Electricity saved year on year Unit: 10,000 kw-hour

2011

2010

200

9

200

8

Application of Energy-saving Technology

In 2011, the company actively implemented the energy-saving and emission-reduction technology, and applied heat-wave boiling, heart-energy recovery, CO2 recovery, step-down operation of air compression system, and boiler stratified combustion as the standard configuration to technical transformation of its affiliated factories. It also popularized the new technologies such as cascade refrigeration, solar energy and waste-heat recovery as well as the application of new resources in the newly-built factories, greatly reducing the operation cost. In 2011, 14 factories implemented the heat-wave technology, 21 factories implemented heart-energy recovery, 51 factories implemented CO2 recovery, 45 factories implemented step-down operation of air compression system, and 35 factories went through transformation of boiler stratified combustion. These energy-saving and consumption-reducing projects reduced the operation cost by RMB 38,000,000.

Reducing Operation Cost RMB

38 million

Waste-heat recovery of Wuwei Company: the smoke-emission temperature of boiler decreases from 200°C to 95-125°C, and the feed-water temperature of boiler can be increased to 60 -90°C; the quantity of heat recovered per hour is 500,000 kilocalorie, saving more than 300 tons of standard coal annually.

water outlet

drain outlet

heat pipe

fume infume out

drain outlet

diaphragm

Water inlet

Case

Case

24




Basic Information

Utilization of Biological Energy

The utilization of biological energy can increase efficiency and minimize the impact on environment. The sewage treatment system of the company adopts UASB anaerobic treatment process, which will produce plenty of methane in the operation process, and such reclaimed methane can be used for boiler burning, reducing both GHG emission and coal consumption. In 2011, 13 factories affiliated to the company successively started using the methane-recovery equipment, and the total recovery of methane reached 2,345,000 m3, increasing by 35% compared with 2010.

Rizhao Company adopts the UASB, and the methane produced through anaerobic reaction later goes through dehydration and desulphurization treatment and then is used for methane boiler burning, wherefrom steam will be produced, and good economic benefit and environmental-protection benefit can be achieved. Rizhao Company produced 244,000 m3 methane in 2011, increasing by 17.2% than in 2010, and produced 1,500 tons of steam, equivalent to saving 194 tons of coal.

Methane collection pipeline in anaerobic pool Methane desulphurization system

Suizhou Company slightly changes the Biomass Boiler by adding a plant burning machine, which turns it into a boiler that burns husks without changing its principal part and coal-burning function. The product after burning is neutral or faintly acid, and contains high nutrition of potassium, which can be used as fertilizer. In 2011, 9,000 tons of husks were burned, and 18,204 tons of steam was produced, equivalent to saving 2,349 tons of standard coal.

Biomass Boiler

Case

Case

25




To actively cope with climate change, Tsingtao Brewery practiced the “low-carbon operation mode” and, by means of technology R&D, product design, production & manufacturing, marketing channels, delivery and transportation, improved the enterprise’s carbon management capability in an all-round way and realized maximization of carbon asset value.

GHG Inventory

Tsingtao Brewery took the lead in carrying out GHG Inventory. In April 2011, when the 2nd Factory of Tsingtao Brewery had carried out GHG Inventory project, Tsingtao Brewery began to popularize it among its 56 factories. As required by ISO14064, GHG total emissions were specified and key procedures for GHG emission reduction of each factory were identified, thereby providing scientific guidance for continuously reducing GHG emissions.

CO2 Recovery & Recycling

Tsingtao Brewery comprehensively popularized CO2 recovery and purifying technology in the production process. By means of strengthening CO2 operation management and timing advance of CO2 recovery, the CO2 recovery per kl of cold wort in 2011 increased by 6.70% compared with 2010. Connected equilibrium and belt-pressure scrubbing were utilized to reduce CO2 usage amount, and by 2011, 11 factories had realized CO2 “zero purchase”, annually recycling CO2 101,100 ton. And if a 30-year fir absorbs 111kg CO2, Tsingtao Brewery has equivalently planted 910,000 firs in 2011.

Coping with Climate Change 21.09

14.33

17.83

20.52

CO2 Recovery per kl ofCold Wort Unit: kg/kl

2011

2010

200

9

200

8

Water consumption per unit product in 2014 drop to

4.15 m3/kl

COD and SO2 emissions per unit product decrease annually by

5%Future Objectives of Environmental Protection

Annual Recycling (emission reduction) of CO₂ totaled

101,100 ton

26




Basic Information

Control of Waste Gas

Waste gas in beer industry mainly comes from boiler flue gas, and in order to control the environmental pollution caused by the smoke, dust and SO2 contained in boiler flue gas, the company adopted a variety of measures, including central heating for the factory, substituting gas-fired boiler/oil burning boiler for coal-fired boiler, and application of biomass boiler. In 2011, the up-to-standard rate of the company’s emission of boiler flue gas is 100%, and accumulative reducing rate of SO2 emission is 13.64%.

Barley

Electricity

Water Coal

Waste waterCullet

Accessory waste

Waste Diatomite

Condensed water

CO2

Beer bottling

Recycling

Fodder

Bio-pharmaceutical

Building Materials

Beer bottle

Boiler water supply

Make waste profitable

Sewage disposal Afforesting and greening

Boiler desulphurization and dust control

Distillers’ grains & malt culms

Cleaning Fluid

Beer

Waste Heat

Resource Allocation

CIP

Waste Yeast

Tsingtao Brewery has been adhering to the 3R principle of “reduce, reuse and recycle”, and regards wastes as misplaced resources. While going after outstanding quality, we keep consolidating the management foundation of resource economization; with respect to resource consumption, we attach importance to source reduction and process control, so as to maximize the resource economization; oriented by maximization of resources utilization efficiency, we implement comprehensive utilization as resources, multistep utilization, and cyclic utilization of the by-products in the process of production and service, and implement deep processing of the high-value-added by-products. In 2011, the company’s recycling rate of distiller’s grains, waste yeast, malt culms, and waste wrappage reached 100%, and waste comprehensive utilization value achieved RMB 0.193 billion.

Utilization of wastes as resources

In 2014, CO2 emissions per unit product in the manufacturing process will drop by more than

15%

In 2014, electricity consumption per unit product drop to

57.27KWH/kl 47.16 kg/kl

In 2014, coal consumption per unit product drop to

Waste comprehensive utilization value reached RMB

increasing by 22% compared with RMB 0.158 billion in 2010

0.193 billion Tsingtao Brewery Economic Chain for Recycling

27




Contributing Love——Contributing Happiness to Society

28




Basic Information

With a century of history, Tsingtao Brewery has been putting social responsibility as the top priority, cherishing the business philosophy that “social value is always higher than enterprise value” and, while getting bigger and stronger, actively promoting the development of philanthropy and public-welfare undertakings of China. Tsingtao Brewery is always convinced that a sustainable and healthy enterprise shall realize a reciprocal process in which giving of responsibility is reciprocated with gaining of trust: responsibility is sowed, and trust is reaped. Responsibility is a kind of perseverance, and if an enterprise adopts a sustainable responsibility system to escort the fulfillment of responsibilities, this enterprise will be held in esteem.

29




We recognize it very important to consume our products rationally and moderately. We ensure that all marketing and sales activities are initiated based on the concept of rational drinking. We are very concerned about drunk-driving, high-risk drinking, and underage drinking, and we minimize the occurrence of such incidents through a series of measures.

Rational Drinking

Our Proposition

Our Actions

People who are inadvisable to drink

Minors should not drink because they are not physically and psychologically mature and alcohol may damage their bodies.

Pregnant women should avoid drinking during pregnancy as alcohol will cause the fetus potential health risks. If women drink during lactation, alcohol may also bring harm to their baby by being transmitted into the breast milk.

Drivers should not drive after drink. Drunk-driving will not only bring tremendous risk of life to the driver and passengers, but also to innocent people who may be hurt or injured, thereby causing suffering for many families.

Patients should avoid drinking alcohol during the treatment or medication, because alcohol may affect the therapeutic effects.

Immoderate drinking will cause physical and psychological damage to every consumer, while heavy drinkers may also pose a threat to people around them.

“Excessive drinking is harmful to your health” is marked on product label.

Cooperate with radio stations to inform the drivers “Beer is delicious but don’t drink to the excess, Tsingtao Brewery reminds you not to drink and drive”.

Develop and produce low-alcohol and low-calorie beer for consumers and promote the consumption of low-alcohol products; pioneered the Tsingtao Beer nonalcoholic beverage.

During sales promotions, distribute leaflets to advocate reasonable drinking.

Age inquiry at the opening page of the company’s website and a friendly tip “the under age shall not consume alcoholic beverages” are set up.

Develop and launch the nonalcoholic products

We advocate not to drive after drinking

30




Basic Information

Officially initiated in March 2009, the Tsingtao Brewery - Red Cross psychological assistance project of “rebuilding passion and achieving dream” has over the past three years opened 500 courses of psychology health class held over 20 psychology lectures and carried out more than 3500 person-times of scientific measurement for the students from 3 schools in the disaster area, greatly improving the passive emotions such as depression, anxiety, pressure, weary of studying, trepidation that are prevalent among students; with the help of the project, more than 20 students who were weary of studying have rectified their learning attitude, and the students on the verge of dropping out were able to come back to classroom again.

In Sept. 2009, Tsingtao Brewery QSL Youth Sports Development Fund was founded, aiming to help schools in poor areas with the insufficiency of sports facilities. In 2011, the activity was gradually developing in provinces such as Shanxi, Hebei, Tibet, Gansu, Hunan and Guangxi, to which RMB 5.7 million and 117 schools were donated, together with 2000 sets of sports & garden facilities and computer rooms, enabling 60,000 students in poor areas to enjoy the pleasure and dream of sports.

Let soul debris obtain regeneration ——3-year warmth extension of psychological assistance by Red Cross to Sichuan earthquake areas

Tsingtao Brewery * QSL Youth Sports Development Fund

Students and teachers from Beichuan came to Tsingtao to participate in summer camp activity and paired with children of the staff of Tsingtao Brewery Company.

The group photo of Sun Mingbo, President of Tsingtao Brewery (the first one on the left) with leaders of Shigatse Government in front of the sports equipment donated by Tsingtao Brewery.

The volunteers for psychological assistance are providing psychological counseling for children in Beichuan

Chen Guo (anonym), a student of Chenjiaba Middle School, now he is active, happy and naïve, however, his mother and younger sister died in Wenchuan earthquake three years ago. Soon after, his father brought Chen Guo and set up a new family, and the impact of earthquake on him was looming large day by day. In daytime he was in a low mood and could not study intently; at night he was dreamful, and his academic performance was began to decline because he could not sleep well; influenced by the earthquake, his father usually scolded and beat him, and the relationship between them became increasingly intense. Chen Guo slowly became dissocial and unwilling to communicate with strangers.

Just at this moment, Tsingtao Brewery volunteers of psychological assistance to Sichuan earthquake areas found him and separately made a tutorship plan for him, now he has become more cheerful with the help of others. He said that “I am ranking among the TOP 20 in the class, my father does not beat me any more, my aunt (stepmother) treats me well, I will try to go to an excellent senior middle school and become a special soldier when I grow up, to help more people in need.

Case

31




On Feb. 10, 2012, Guo Mingyi, the moral model who is glad to help others released in his blog the message of saving the lying-in woman. After knowing this news, the Guo Mingyi Love Team - Tsingtao Brewery Branch Team from Anshan factory of Qingdao Beer immediately contacted Guo Mingyi and actively participated in the donation of hemopoietic stem cells. The team summoned in 10mins A blood-type people to rush to the blood station, to become the first team of donating blood cells. Finally, the blood cells of team member Liu Dongbo (the third from left) successfully saved the mother and infant in danger. Later, Anshan factory continued to participate in the collection of blood cells, and carried out many

love and public benefit activities including “love team tour photo exhibitions” and “sponsoring 10 poor university students of Liaoning Science and Technology University”. Such efforts were extensively recognized and highly praised by all walks of life, and the above philanthropic act attracted universal attention and reports by CCTV and Anshan local media.

He Zi Chen Yibing Liu Xiang

On Nov. 9, 2011, Tsingtao Brewery successfully signed contract with Liu Xiang, Yi Jianlian, Chen Yibing and He Zi, and ignited the national pride Chinese people by the persistence and passion of sports as well as an enterprising spirit. The contract signing not only reflected the determination of Tsingtao Brewery helping Chinese champion team to win glory for the country, but also successfully injected a new passion and power for the success of sports and economy of China.

Over the past years, Tsingtao Brewery as a corporate citizen has been responsible for social welfare, actively sponsoring and cooperating in sports events, as well as holding national sports activities, thereby making active contribution to promoting the extensive spreading of aggressive and positive sports spirit, and greatly accelerating the simultaneous development of Chinese competitive sports and national sports. Tsingtao Brewery hopes to pass on such sports spirit to more and more people, to communicate with people around the world through sports and share passion together.

Supporting the Olympic champion team of China

Yi Jianlian

Case

32




Basic Information

Miss Jiang Hong, Vice President of Tsingtao Brewery signed contract concerning the “Tsingtao Brewery Scholarship for Talent Cultivation” donation plan in new 3 years with Qingdao University and Qingdao Education Foundation.

Loving the Society

Carrying out voluntary service activities in the community. Actively donate money and materials when any walks of life meet disaster and difficulty. Actively carrying out charity donations; the donation amount has totaled RMB 800,000 since 2005. Supporting the Welfare Foundation for the Handicapped in Qingdao for many years to develop housing project for the difficult and handicapped groups in rural areas, and up to now RMB 1.98 million has been accumulatively donated. Helping the poor and handicapped families to move to new houses and actively participate in foster project, and donating RMB 200,000. Regularly inviting residents in the community to participate in community activities and visit and inspect factories, and learn to supervise the operations of the factory.

Carrying out “learning from Lei Feng” servicing activities, providing services such as beer tasting free of charge, measuring blood pressure and electro-gas welding. Extending regards to military officers and soldiers, as well as civil policemen. Help and extend regards to staff in difficulty, establish love fund and extend a helpful hand. Organize staff of each factory to actively participate in public-benefit & blood-donation activities. Extend regards to the local orphanage, home for the aged, home for the handicapped and charity house. Support education business and issue “Qingdao University - Qingdao Beer Scholarship for Talent Cultivation”, “Qingdao Beer Talent Scholarship” and “Qingdao Excellent Gardener Award”. It has up to now issued RMB 1.13 million to over 1000 excellent students of Qingdao University, and RMB 1.44 million to over 1000 excellent teachers of elementary and middle schools. Carrying out charity projects of helping doctors, establishing charity-rescue platforms, and helping the elderly people of no family in the community to get medical treatment nearby.

33




20.4%Total amount of remuneration for employees increased year-on-year by

37743On-job workers

38%The number of workers with a Master’s degree or above increased by

805The number of Female employees increased by

year on year

Harmony among All ——Sharing Happiness with Value Chain

compared with 2010

34




Basic Information

To make “people” bigger through making the “enterprise” bigger and to make “enterprise” bigger through making “people” bigger is what Tsingtao Brewery has been aspiring after over the past 100 years. In 2011, we continued to care for the rights and interests of employees, care about their growth, and enhance their happy experience in the process of realizing a win-win situation of enterprises and employees. In 2011, Tsingtao Brewery won two awards: “Chinese Best Employers” and “Employers Most Concerned by Workers”.

Certainly, those who have make great efforts and shared with Tsingtao Brewery are not only the internal employees, but also the consumers, suppliers, and dealers…

35




Zhang Hua (anonym) and Wang Jianxin (anonym) are both ordinary employees of Tsingtao Brewery. In Nov. 2011, Zhang Hua was diagnosed in a physical examination to be suffering from lung tumors. And the subsequent 9 months of medical treatment cost them nearly RMB 400,000, and deducted from the amount of reimbursement covered by medical insurance, they had to personally bear a medical expense of nearly RMB 190,000, which was a heavy burden on her family which was not well-off. Upon hearing the news, “Tsingtao Brewery Care Fund” sent her RMB 45,000. As a matter of fact, Zhang Hua is not the only one employee in Tsingtao Brewery who has received aid from “Tsingtao Brewery Care Fund”. In March 2011, Liang Chao (anonym), a 26-year-old worker was diagnosed as suffering from acute leukemia, and upon hearing the news, the company on the one hand reached out to the Red Cross and acquired a financial aid of RMB 10,000 for him, and on the other hand took RMB 40,000 out of “Tsingtao Brewery Care Fund” to pull him through the bone marrow transplantation, helping him tide over his illness. And in May, having known that worker Chen Hua (anonym) suffered from serious pneumonia, the company again took RMB 35,000 from the “Tsingtao Brewery Care Fund”…

Safety • Health • Guarantee

In 2011, Tsingtao Brewery continued upholding the mission of “making the factory a safe, healthy and happy place to work”. Standardization and vividness of safety management was further strengthened on the basis of professionalization. Safety DV, safety cartoon image, and safety speech contests were utilized to popularize safety knowledge and foster safety culture, turning implementation of safety system into a daily routine practice. Moreover, the company in 2011 invested RMB 31.83 million in improvement of safety protection facilities.

Case

36




Basic Information

231,000 1.6 million

Employees Care Fund of Tsingtao Brewery

In March 2011, Tsingtao Brewery initiated the first “Tsingtao Brewery Care Fund” in Qingdao City specially for helping out needy employees within the enterprise, to practice the mission of “creating happiness for life”. The fund consists of company’s investment and employees’ donation. By the end of the year, RMB 1.6 million had been raised, in which RMB 231,000 had been used as relief fund to aid 7 needy employees suffering from serious illness. In the future, the Fund will send faith and care to more employees in need.

Xie Jianqiang (first on the left), Director of Party and Mass Affairs Department of Tsingtao Brewery, and Chen xin (first on the right), Assistant to General Manager Sanshui Company went to the home of aided employees to extend their regards.

Occupational Health Management for Employees

The first in the industry to carry out comprehensive inspection on the occupational hazards of factories;

Equipping the employees with high-standard personal protective equipment;

Providing occupational health examination for employees from the 56 factories.

By the end of the year, RMB

had been raised. had been used as relief fund to relieve employees in need.

needy employees suffering from serious illness

RMB Helping

7

37




Communication • Care • Happiness

Self-developed Tsingtao Brewery “Employee Happiness Index” System

In 2011, Tsingtao Brewery independently developed the Employee Happiness Index System, and designed the survey questionnaire according to five dimensions related to employees’ happiness, namely the Organizational Development, Cultural Communication, Emotional Care, Career Development, as well as Remuneration & Benefits, to care about the employees’ appeal. Altogether 4557 employees took part in the survey, accounting for more than 10% of the total number of staff.

Part-time “Employee Communication Counselors” were provided

According to the characteristics of new-age employee relationship management, and considering the intergenerational conflict, career-values transfer, and ethnic differences between 80’s and 90’s, Tsingtao Brewery in 2011 provided all the units with part-time “employee communication counselors” whose job responsibilities were specified, with a view to, through professional guidance, training and consulting, knowing about the psychology and feeling of employees, helping them relieve pressure, enhancing performance, and improving organizational climate and management.

Career Development

Emotional Care

Cultural Communication

Organizational Development

Remuneration & Benefits

Diagram of Employee Happiness Index System

38




Basic Information

Opening the “Employee Care Phone”

As employees of Tsingtao Brewery are around the globe, in order to further actively know about their demand, Tsingtao Brewery in 2011 initiated telephone remote interview through Marketing System, with a view to letting the employees feel the warmth of Tsingtao Brewery as a big family by means of monthly telephone interview and Employee Care Phone.

Homecoming

“Homecoming” is an activity with unique Tsingtao-Brewery characteristics that has been going on for many years. Tsingtao Brewery employees from various regions come to the birthplace of Tsingtao Brewery to have a visit and quest for history of ancestors, and feel the extensive and profound cultural deposits of Tsingtao Brewery with a century of history. This activity is also an effective means to care for and inspire the employees. In 2011, 71 excellent employees from 17 marketing units took part in the activity, achieving good effects.

EAP (EMPLOYEE ASSISTANCE PROGRAM)

Employee Rest & Activity Place

Retiring Room for Em

ployee

Employee Library

Activity & Recreation Room

General M

anager vMailbox

General M

anager Reception Day

Employee Foru

Internal Training

External Trainingt

Combined Training

Employee Communication

Feedback channel

Emotion and Stress Management

Training

39




Share • Display • Growth

Remuneration & Benefits

Set performance as the evaluation factors, pay attention to the improvement of low-income groups, and keep improving the compound wage-growth management modes of “basic guarantee growth and performance target growth”. In 2011, the total amount of remuneration for employees increased year-on-year by 20.4%, in which total amount of wage increased year-on-year by 15.8%.

Career Development & Training

New employees collectively taking an oath

The company’s training costs totaled RMB

2520 million

I n 2 0 1 1 , t o t a l a m o u n t o f remuneration for employees increased year-on-year by

20.4%

In 2011, the company offered 143,784 courses of training, that is, 22 courses per capita; and the training expenses totaled RMB 25.2 million.

Apart from cooperating with Jiangnan University in opening two postgraduate classes for Brewing major and Mechanical Equipment major in order to improve professional competence, Tsingtao Brewery in 2011 pay more attention to skill improvement of grass-root operators. For this purpose, Tsingtao Brewery cooperated with Wuhan Beer School and opened 10 sessions of “Mechanical Repairer Training Camp” program, cultivating more than 300 mechanical repairers. Professional schools in brewing, power, packaging, QA, logistics and finance became the big classroom for employees to learn latest knowledge and exchange the best experience. Sino-German Beer Academic Forum introduced the internationally most advanced brewing ideas into the company, broadening the horizons of all the employees. The increasingly improved curriculum has included 709 courses under 18 broad categories for the employees to learn; and 128 company-level trainers are always ready to give instructions and answer questions.

40




Basic Information

Gold Qualification Class Golden Key Support Program

Gold★Qualification Class

In 2011, Tsingtao Brewery cooperated with Tsinghua University and Zhejiang University in holding the first “Gold Qualification Class”. The class received 53 students, all of which were representatives of regional managers, manufacturing directors and HQ business managers from units affiliated to Tsingtao Brewery. The class takes in the openly selected talents from the company, and is determined as the Qualification Class for reserve talents of Tsingtao Brewery.

Golden Key Support Team and Golden Experts Pool

In 2011, Tsingtao Brewery initiated the Golden Experts Pool and Golden Key Support Team for factories. Golden Experts Pool includes 27 types of work under 4 broad categories: equipment engineering technology, technical quality, production operations and productive maintenance, and is currently made up of 1324 experts from 40 beer factories. Based on the Golden Experts Pool, the Golden Key expert team of 164 experts was set up; meanwhile the application procedures, evaluation criteria, responsibilities, incentives, rights and obligations for the Pool experts and the Support Team members were specified. In 2011, 22 factories provided 37 posts and 282 supports for 27 factories in need.

Integrated Benefits

In 2011, the company supplemented the existing welfare projects (such as statutory welfare) with a variety of new projects considering the regional and cultural differences, including physical examination, festival welfare wine, and wedding wine, to form the Integrated Benefits and to promote the integration and normalization of welfare projects. And the company’s welfare expenses in 2011 totaled RMB 0.116 billion.

In 2011, the company improved its Talent Management System, set up the talent-cultivation flywheel model, and formed a talent map featuring 6 professional line and 4076 people, providing a broad platform for career development of employees by means of talent evaluation, job qualification certification, and the Golden Key Expert Pool.

Total welfare expenses RMB

0.116 billion

41




With Business Partners

Fan Wei (third from left), Vice President of Tsingtao Brewery led the procurement team to overseas raw-material base to conduct market survey

Jin Zhiguo, Chairman of Tsingtao Brewery lit the torch in the hand of the dealer; the “handing on the torch” second-generation Tsingtao Brewery dealers are taking the torch from the elder generation.

Global dealers of Tsingtao Brewery are to assemble in Boao, and one hundred dealers from Shandong Province are flying to Hainan to share glory.

Tsingtao Brewery has been proposing to, during supply-chain cooperation with business partners as a community of interest, cherish high aspirations, attain successful career, bring about “mutual benefit, mutual success and mutual prosperity”, and make the enterprise evergreen!

“Making profit with moral righteousness, and win-win cooperation” with suppliers

Tsingtao Brewery believes that cooperation with suppliers is based on long-term development on the one and the same supply chain, on social responsibility, and a sense of mission. Through scientific and effective information communication with suppliers, opportunities are provided to improve the quality, service, management and cost; through mutual support in joint R&D projects, supply-chain system cost and efficiency are sought to be minimized.

In 2011, Tsingtao Brewery determined supplier management system and performance evaluation system, adopted project work mechanism and regular communication mechanism, carried out exchanges on the best management practices, industry information, and cost, to implement environmental-protection, low-carbon and public-welfare projects. Tsingtao Brewery will always advance hand in hand with its suppliers and partners.

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Basic Information

7 new permanent dealers of Tsingtao Brewery are present at the Global Annual Meeting 2012

Wang Wenlong (the first on the left), an employee of Qingdao Regional Market is conducting a market survey

“I have been dealing in Tsingtao Beer for more than a decade, and I am feeling confident and proud. A great career can be achieved by selling beer, and I am gonna pass on such a business to my son.” Mr. Yu, a representative dealer f rom Shandong said when he was initially acquainted with Ts ingtao Beer, he was selling beer in a retail shop, and now, he has become one of the biggest beer dealers in Qingdao. There quite a lot of dealers similar to Mr. Yu who treats dealing in Tsingtao beer as a family business and passes on it to the second and even third generations, and some American dealers have been cooperating with Tsingtao Beer for nearly thirty years. Tsingtao Brewery values the dealers as an indispensable link on its value chain, sharing coexistence and common prosperity.

Yan Renren Fang Xishun Zeng Huanxin Yu Zongyun Liang Zegen Ye Zhongfu Kong Xiangwei

Support the Dealers Wholeheartedly

On March 2nd, 2012, Tsingtao Brewery Global Annual Meeting 2012 was grandly held in Boao. After this meeting, Tsingtao Brewery further underlined the strategic value of dealers and partners, and carried on with the development model of “benefit sharing community (mutual benefit), value-creation community (mutual success) and cultural-belief community (mutual prosperity)”. And such “mutual benefit, mutual success and mutual prosperity" ideas are meant to form a value-chain integration competitive advantage and thereby create a win-win future together with the dealers.

In 2010 and 2011, the team of overseas dealers Tsingtao Brewery keeps expanding, and the number of involved countries rises from 59 to 76. Tsingtao Brewery is making the Chinese Taste spread to all over the world by virtue of internationalized passion and process. “Tsingtao Brewery is made in China, and it goes to all consumers of the world; her passion and charm are irresistible to any one.” - That is how Lin Guochuan, the general agent in Australia and New Zealand commented on Tsingtao Brewery.

Case

43





Honors and Awards in 2011 (Partial)

Won “10-year Achievement Award for the Most Respected Enterprises in China”

Won “International Carbon Gold Award”

Entitled “2011 500 Most Valuable Brands in China”

Entitled 2011 “Most Admired Chinese Companies”

Won “2011 Green Gold Environment Award”

Entitled “Chinese Best Employers 2011”

Rated again as the best report in food and beverage industry in “The Third CSR Report Summit Forum & CSR Report Ratings for A-share Listed Corporations”

Won Global Compact China CSR model report “Excellent Innovation Award” 2011

Won “Best Corporate Citizenship” Award, and listed into “Low-carbon Pioneer Enterprises 2011”

Listed as “China Most Innovative CSR Report 2011”

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Basic Information


Evaluation and Comments on Sustainability Development Report of Tsingtao Brewery Co., Ltd. 2011

Third-party Evaluation

Evaluation

Beer only has a development history spanning more than 100 years, yet it sprouted on the good soil of Chinese market and now is in full bloom. Equally endowed with a century-old history, Tsingtao Brewery can count as the epitome of Chinese beer industry, as it has witnessed the development of Chinese beer industry like a raging fire, and is going strong with each passing day. In other words, the glory of Chinese beer industry can not be attained without the meritorious contribution of Tsingtao Brewery.

While enjoying a rapid economic growth, it is undeniable that China, like other developing countries at large, is facing the problems such as environmental bottleneck, energy shortage, product quality control, as well as labor and welfare. Confucius said: a gentleman can not do without either kindheartedness or righteousness. And this has provided us with moral norms as to how to bear and conduct ourselves. Many entrepreneurs and public opinion leaders are pondering, what corporate responsibilities and social norms do we need, and what economic behavior and development model shall be pursue? In just a few years, being attached great importance to by the State and promoted by the whole society, CSR in China has evolved from enlightenment to popularization, idea to action, and novelty to consciousness, and is tending towards effectuation step by step. As it can be seen from Sustainability Development Report of Tsingtao Brewery Co., Ltd. 2011, Tsingtao Brewery has elevated CSR onto a level of corporate strategy, and is actively carrying out its social obligations, disciplining itself as an excellent corporate citizen, and trying its utmost to make contribution to economic growth and social development of China. Tsingtao Brewery has not only made unremitting efforts in product quality, environmental protection, social benefit and value-chain sharing, but also introduced the performance evaluation system, which becomes the key to enhancing corporate culture. Tsingtao Brewery is dedicated to build a resource-intensive and environment-friendly enterprise, promote corporate development, social progress, and harmony of ecological environment, and has built a corporate image

infused with a sense of responsibility and affinity. “Making profit through righteousness and making money by honorable means” has reflected Chinese enterprises’ fine tradition of thinking highly of social responsibility.

Emergence of CSR in China is the embodiment of “scientific development” macro background and “harmonious society” theory system. At present, China is thoroughly implementing the Scientific Development View and building a harmonious society, and only if our beer enterprises regard the fulfillment of social responsibilities as the core philosophy for business operation, and consciously make it run through the whole productive process, can we acquire a broader development space. Just as the business philosophy “social value is always higher than enterprise value” advocated in the Sustainability Development Report of Tsingtao Brewery Co., Ltd. 2011, a sustainable and sound enterprise shall shoulder responsibilities and thereby gain trust; responsibility is sowed, and trust is reaped. The growth in wealth of an enterprise comes from consumers and investors’ recognition and favor of its brand and products, therefore, the enterprise shall reward the society and value chain, and actively perform its social responsibility, so as to win the trust and respect from consumers.

Therefore, we have every reason to believe that, Tsingtao Brewery is bound to become the example of honesty and trustworthiness and the model as a harmonious enterprise in Chinese beer industry, as well as the pillar of national economy. We will grow, develop and prosper hand in hand with Chinese beer industry, making indelible contribution to national economy development, social harmony, and steady progress of China.

Beer Branch China Alcoholic Drinks

Industry Association

Suggestions:

Tsingtao Brewery is suggested to make ful l use of var ious industrial and social resources and platforms, play an exemplary role as the industry leader, and actively support and participate in domestic and international CSR public-benefit activities, to make greater efforts for further promoting international status and image of Chinese beer industry.

45




I have careful ly read the Susta inabi l i t y Development Report of Tsingtao Brewery Co., Ltd. 2011 (hereafter refers to as the Report), and hereby make comments as followed:

I Evaluation Tsingtao Brewery Co., Ltd is the most time-honored “century-old shop” in beer industry of China, as well as the sixth-biggest beer manufacturing enterprise. The company operates under the guideline of Scientific Development View, and actively implements corporate social responsibility in accordance with the requirements of The Guidance for Corporate Social Responsibility Required of Central Government-owned Enterprises by SASAC State Council. In 2011, the company vigorously pushed forward reform and transformation, and put forward three “shifts”: our concerns shifting from organizational values to social values; our responsibilities shifting from entire supply chain to entire society; and shifting from strengthening our supply-chain management capabilities to strengthening system management capabilities; and created the development model of “mutual benefit, mutual success and mutual prosperity” with stakeholders. The company is dedicated to providing the society with safe, healthy and high-quality products, and is well received by extensive consumers at home and abroad. The Report gives a full disclosure of the company’s performance of responsibilities with respect to enterprise sustainable development from four perspectives - Cultivating High Quality, Caring for Nature, General Mobilization of Love, and Harmony among All, which are primary social concerns.

II Characteristics1. Distinctive Characteristics. The Report develops around the company’s four “happiness” concepts - Happy Drinking for Consumers, Cre a t i n g Ha p p i n e s s f o r E nv i ro n m e n t , Contributing Happiness to Society, and Sharing Happiness with Value Chain, giving full play to the company’s cultural characteristic and reflecting distinctive enterprise characteristics.

2. Give prominence to the key points. The Report gives information disclosure of four key topics on social responsibility that are most concerned about by stakeholders in food industry - product quality, environmental protection, social benefit, and win-win cooperation. The disclosure

conforms to substance-over-form principle and the data therein are abundant.

3. High readability. The Report ’s format design is vivid, and the texts and diagrams are well-proportioned, fully displaying the “happy” theme of the report, deeply impressive and highly readable to the readers.

In conclusion, the Report comprehensively d e s c r i b e s Ts i n g t a o B re w e r y ’s i n f u s i n g responsibility consciousness into its operation practices and discloses the core topics of social concerns. With well-organized structure, vivid description and substantial data, the Report gives prominence to the key points, meets the information disclosure requirements of UN Global Compact and is in line with the main trend of international sustainability development report. This is a high-level sustainability development report.

III Suggestions In order to further promote the company’s sustainability, suggestions are made as follows:

Strengthen the company’s social responsibility m a n a g e m e n t a n d s o c i a l re s p o n s i b i l i t y institution, improve its management system and institutional system, and enhance the employees’ responsibility consciousness and ability to perform such responsibility.

Actively participate in important CSR affairs at home and abroad, to better disseminate the company’s responsibility idea and enhance its responsibility brand influence.

Office Director of China Network Center, the UN Global Compact

Director of Beijing Rongzhi CSR Research Institute

Evaluation and Comments on Sustainability Development Report of Tsingtao Brewery Co., Ltd. 2011

Chen Ying

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Basic Information


Your Feedback

Dear Readers: Thank you for reading the Sustainability Development Report of Tsingtao Brewery Co., Ltd. 2011, and if you have any opinions and suggestions on this report, please fill in the Feedback Form below and send it to us by mail, fax or email. We will be grateful for your valuable comments!

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You may contact us by:

Address: Public Relations Management Department Tsingtao Beer Tower, May Fourth Square Hong Kong Central Road, Qingdao, China Postal Code: 266071

tel: 0532-85785641FAX: 0532-85720051E-MAIL:[email protected]

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Appendix: GRI Guidelines Index

1 Strategy and analysis

1.1 Statement from the top decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.

P4-7

1.2 Description of key impacts, risks, and opportunities. P4-7

2 Organization profile

2.1 Name of the organization P12

2.2 Primary brands, products, and/or services. P12

2.3 Operational structure of the organization. P13

2.4 Location of organization’s headquarters. P47

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

P10-12

2.6 Nature of ownership and legal form P12 2.7 Market the organization serves P10-12

2.8 Scale of the reporting organization P10-12

2.9 Significant changes during the reporting period regarding size, structure, or ownership --

2.10 Awards received in the reporting period. P44

3 Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year). Back cover

3.2 Date of most recent previous report (if any). Back cover

3.3 Reporting cycle (annual, biennial, etc.) Back cover

3.4 Contact point for questions regarding the report or its contents. P47

3.5 Process for defining report content Back cover

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).

Back cover

3.7 State any specific limitations on the scope or boundary of the report. Back cover

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Back cover

3.9 Data measurement techniques and the bases of calculations. Back cover

3.10 Explanation of the effect of any re-statements of information provided in earlier reports ---3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement

methods applied in the report.---

3.12 Table identifying the location of the GRI in the report. P48-52

3.13 Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s).

---

No. Disclosure Items Page in this Report

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Basic Information


4 Governance

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks.

P13

4.2 Indicate whether the Chair of the highest governance body is also an executive officer. P13

4.3 The number of members of the highest governance body that are independent and/ or non-executive members.

P13

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

P13

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives

--

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. P14

4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees.

P13

4.8 Mission, values, codes of conduct, and principles relevant to economic, environmental, and social performance.

P12/P14-15

4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance.

P13-15

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

P2-3

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.

P14

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

P31-33

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations.

---

4.14 List of stakeholder groups engaged by the organization. P15

4.15 Basis for identification and selection of stakeholders with whom to engage. P15

4.16 Approaches to stakeholder engagement. P15

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns.

P15

5 Economic Performance Index EC1 Direct economic value generated and distributed. P2-3/P12

EC2 Financial implications and other risks and opportunities for the organization’s activities due to market environment change.

P14-15

EC3 Coverage of the organization’s defined benefit plan obligations. P36-41

EC4 Significant financial assistance received from government. --

EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

P40

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

P42-43

EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation

--

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement.

P31-33

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

P4-11/P42-43

No. Disclosure Items Page

49




6 Environmental Performance Index

EN1 Materials used by weight or volume. P21-23/P26

EN2 Percentage of materials used that are recycled input materials. P24-27

EN3 Direct energy consumption by primary energy source. P26-27 EN4 Indirect energy consumption by primary source. P24 EN5 Energy saved due to conservation and efficiency improvements. P24-25

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

P24-27

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. P24-27 EN8 Total water withdrawal by source. P22

EN9 Water sources significantly affected by withdrawal of water. P22-23

EN10 Percentage and total volume of water recycled and reused. P22-23

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

---

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

---

EN13 Habitats protected or restored. ---

EN14 Strategies, current acts, and future plans for managing impacts on biodiversity. P22

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

---

EN16 Total direct and indirect greenhouse gas emissions by weight. P26-27

EN17 Other relevant indirect greenhouse gas emissions by weight. ---

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. P26-27

EN19 Emissions of ozone-depleting substances by weight. ---

EN20 NO, SO, and other significant air emissions by type and weight. P26-27

EN21 Total water discharge by quality and destination. P22-23

EN22 Total weight of waste by type and disposal method. P27

EN23 Total number and volume of significant spills. ---

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

---

EN25 Water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

P22-23

EN26 Initiatives to mitigate environmental impacts of products and services, and the results achieved.

P22-27

EN27 Percentage of products sold and their packaging materials that are reclaimed by category. P26-27

EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.

---


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Basic Information


EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

---

EN30 Total environmental protection expenditures and investments by type. P20-22

7 Social Responsibility Index

LA1 Total workforce by employment type, employment contract, and region P34

LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region

---

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation.

P36-41

LA4 Percentage of employees covered by collective bargaining agreements. P34

LA5 Minimum notice period(s) regarding operational changes P36

LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs.

P36-37

LA7 Rates of injury, occupational diseases, lost time injury frequency rate (LTIFR), lost days, absenteeism and work-related death, and number of work related fatalities by region and by gender.

P2-3

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

P36-39

LA9 Health and safety topics covered in formal agreements with trade unions. P36-37

LA10 Average hours of training per year per employee by employee category. P40-41

LA11 Programs for skills management and lifelong learning that support the continued employability of employees.

P40-41

LA12 Percentage of employees receiving regular performance and career development reviews. P40

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

P40-41

LA14 Ratio of basic salary of women to men. P34

8 Social Performance Index: Human Rights

HR1 Percentage and total number of significant investment agreements and contracts that includeclauses incorporating human rights concerns, or that have undergone human rights screening.

---

HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and acts taken.

P42-43

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

P40-41

HR4 Total number of incidents of discrimination and corrective acts taken. ---

HR5 Significant risks identified in which the right to exercise freedom of association and collective bargaining may be violated, and acts taken.

---

HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

---


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HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

P36-37

HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

---

HR9 Total number of incidents of violations involving rights of indigenous people and acts taken. ---

9 Social Performance Index: Society

SO1 Assessment and management of the nature, scope and effectiveness of any programs and acts of business activities affecting the community.

P31-33

SO2 Percentage and total number of business units analyzed for risks related to corruption. P14

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. P14

SO4 Acts taken in response to incidents of corruption. P14

SO5 Public policy positions and participation in public policy development and lobbying. P30

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

P31-33

SO7 Total number of legal acts for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.

---

SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

---

10 Social Performance Index: Product Responsibility

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

P18-19

PR2 Total number of incidents concerning health and safety impacts of products and services during their life cycle.

---

PR3 Percentage of product and service information and information category required by procedures.

P17-19

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling.

---

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

P17-19

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

P30

PR7 Total number of incidents of non-compliance with regulations, standards and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship.

---

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

---

PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.

---


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Basic Information

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