We all have memories we recall when we think about our work, our youth or things important to us. These might be our successes, happy moments with our families, or just the pleasant smell of freshly washed laundry hanging on the line behind our house. To preserve memories, we must also sustain the environment where these things take place. So that the world does not lose its beauty. We approached 12 people from Plzeňský Prazdroj breweries who live for their work and who invest a big part of their personality into it. We asked them why they do so. We juxtaposed their confessions with portraits that reveal just as much about them as their words. There are many colleagues with this approach at Plzeňský Prazdroj. Together we work to ensure sustainability is not an empty fashionable expression, but a living reality. To preserve the good things from the past and build a good future with their help. EDITORIAL Towards a common goal It has been 180 years since the moment the first golden lager in the world was made. Then, more than 200 Pilsen burghers joined forces and together tried something which, at that time, was unseen - to brew a lager from local ingredients: Pilsen water, Czech malt and Saaz hops. Everyone already knows the ending of that story. Pilsen lager became the basis for a brand new beer category which currently has the biggest share of the global market. Just like back then, we are today aware of the great power that lies in cooperation and partnership. Just as our beers help to create a bond between people, we see interconnecting as the best way to find solutions to problems we all face together. Cooperation and partnerships are the cornerstone that we build upon in numerous areas. Often in ways nobody had tried before, as maintaining our tradition in the future despite changing conditions requires trying novel approaches. We think about our business as something reaching far beyond the gates of our breweries. We also look at the overall impact of our business activities, from a barley grain to a freshly poured glass of beer. Last year, we managed to successfully walk several unbeaten paths. We achieved an unbelievably low level of water consumption of 2.29 litres of water per litre of beer in our Radegast brewery in Nosovice. And, for the first time, we got under three litres of water per litre of beer across all our breweries. In addition, we reduced the carbon footprint of our brewery in Pilsen by three quarters after transitioning to getting heat from renewable resources. We are taking some small and big steps on our way to carbon neutrality at all our breweries. In cooperation with hop growers and several technology partners, we are testing opportunities to use modern technology on hop farms. Already during the first year of the project, they helped us understand how the season was going, what was happening inside the plants and what caused one of the worst harvests in history. I believe that technology will help farmers in the future, especially in terms of more efficient water management and better ability to adapt to the impact of climate change. So that there will be enough Saaz hops for the future decades. We also intensively focus on regenerative agriculture and look for ways how a change in management could help return life to soil and thus stabilize the conditions for hop growing. In Slovakia, we focused on malting barley, where we test the potential of agroforestry to improve conditions for its growth. At the end of the year, we achieved full packaging circularity in Slovakia. Thanks to the deposit scheme, the preparation of which we had actively participated in, seven out of ten cans used were collected and recycled into new cans in 2022. We have even gone further and closed the circle by buying collected cans and having them recycled into our own cans for 4/5 the Slovak market. We also thoroughly monitor the end of the journey of our beer. Inflation and a significant increase in input costs, especially energy, have impacted the whole the gastronomy sector. Last year, we invested CZK 450 million in pubs in the Czech Republic, and EUR 4 million in Slovakia. We have intensified, for example, our development programmes which help pub owners improve their business. We added a new area of focus - saving energy and water right in tap rooms. Monitoring the journey of beer from kegs to beer glasses in detail with the help of almost 2,000 sensors in 60 pubs across the Czech Republic and Slovakia will provide us with valuable data based on which we can develop tapping devices which will use less water and energy. In this way we will help pub owners to save up to a third of the energy necessary for the tapping device and, we will, at the same time, reduce the carbon footprint of draught beer. Beyond our long-term strategy, we applied our approach also when the world was struck with a tragic event, the outbreak of the war in Ukraine. This touches all of us as human beings, and so we immediately engaged in humanitarian aid to the inhabitants of Ukraine. Together with our employees, we contributed to a collection initiated by the People in Need organisation, organised material collections at our breweries, and offered both accommodation and employment to Ukrainian families. In response to the conflict, we stopped exporting our products to Russia and Belarus. All this thanks to our people who put a lot of effort into what they do and who work with passion and keep pushing Prazdroj forwards. I am proud of everyone who contributes to our success. I am fully aware that our employees are key to us and so am extremely pleased that we are one of the few companies in the world to have obtained a certificate for equal remuneration for men and women. This is yet more confirmation of our efforts to ensure that all our employees can make full use of their potential and be fairly remunerated. We have also been successful at widening our portfolio to give our consumers the choice to enjoy our products with or without alcohol. Last year, every eighth beer sold in the Czech Republic, and every seventh beer sold in Slovakia, was non-alcoholic. We would not have achieved any of this without our local partners. Each of them is important, no matter how small or big they are. The great thing is that we are all working towards a common goal. Cheers today and for the future! DRAGOS CONSTANTINESCU Managing Director Sustainability Report 2022 CONTENTS About the company 23 Strategy Carbon neutrality From grain to glass Water Raw materials 14 What was 2022 like? One of the biggest tax payers 16 Our awards 18 Quality and risk management 20 Dialogue with stakeholders 28 Strategic goals 30 2022 in a nutshell 32 Sustainability strategy management 33 Fulfilling the strategy 34 Our mission Renewable energy 40 Investment and modernization 43 Energy consumption and 44 Transport and logistics 50 Emissions from grain to glass 52 Absolute 52 Explanatory notes 53 Categories of 61 Reducing consumption 63 Behind the brewery gates 64 Smart taproom 70 One of the biggest barley customers 72 New barley varieties 76 Flowers for hops 77 Packaging Waste xn. 97 People 113 125 141 Responsibility Communities GRI standards 82 91 102 118 129 145 We are reducing So that nothing Diversity Commercial Cooperation GRI index our environmental ends up in and inclusion communication in the regions footprint a landfill 168 106 120 131 Auditor's 82 93 Learning and Preventing minors Breweries report Beer Returnable cups development drinking alcohol and history tanks at festivals 172 107 121 134 About 83 94 Well-being and Na pivo We help the report Returnable How we are doing mental health s rozumem (Drink and support bottles in terms of waste responsibly) and 108 other prevention 138 ... ■ 84 96 Volunteering programmes We develop ■ The circularity Cooperation with beer culture of cans partners 110 122 Talent Non-alcoholic 140 ■ 96 development beers Fresh Brewers' Outlet crackers 111 124 Safety and health Our international protection commitments 112 Ethics Sustainability Report 2022 To the future! 2030 Creating meaningful connections We are the largest brewing company in the Czech Republic and Slovakia. We export our products to more than 50 countries around the world and are one of the most respected beer producers, both in Europe and worldwide. Two years ago when I took over the management of Plzeňský Prazdroj, I understood I was joining something much bigger than just a company which brews great beer. Of course, I fell in love with Mlíko, Šnyt, and Hladinka pours. Yet Prazdroj is more than beer. It is a cultural phenomenon thanks to its history and thanks to the people who built it over the centuries. Here, beer is not just a beverage. lit is a social bonding agent. Nowhere else is a pub so much a place where history was made and which remains the heart of the community. The strong connection between Prazdroj and communities goes hand in hand with a strong sense of responsibility. This does not end at the gates of our breweries. It reaches much further. From barley and hop growers to our employees, through pub owners whose mission it is to pour the highest quality beer, to our consumers. Therefore, we work together on numerous projects with a single aim. To preserve this cultural and natural heritage for generations to come. I am grateful that we, as a company and its people, have the trust of our partners and that, together, we look for solutions for a sustainable future. Because we sometimes walk paths which nobody has ever walked before. As a saying from Romania, my home country, goes: You can never cross the ocean if you do not have enough courage to lose sight of the coast. I am personally proud that we have the courage to seek innovative solutions. DRAGOS CONSTANTINESCU Managing Director, with Prazdroj since 2021. £ BACK TO CONTENTS CHAPTER I. ABOUT THE COMPANY 14 15 16 18 20 What was One of the biggest Our Quality and risk Dialogue with 2022 like? tax payers awards management stakeholders Plzeňský Prazdroj and Plzeňský Prazdroj Slovensko (formerly Pivovary Topvar) have been managerially connected since June 1, 2014. By combining the best of both companies we created a modern and efficient brewing company which is one of the leaders of its industry in Central Europe. Since 2017, we have been part of the Asahi Group. Our beer is brewed in Pilsen, and also in Nošovice, Velké Popovice and Velký Šariš in Slovakia. The most recent brewery that joined our family in 2020 is the Proud experimental brewery in Pilsen. Malt houses are also part of our breweries. They guarantee that only the best quality ingredients are used for our products and that Plzeňský Prazdroj beers are the best example of the Czech brewing industry heritage. We are proud that four of our brands can use the Protected Geographical Indication České pivo. Pilsner Urquell is one of a handful of brands which can be proud of repeatedly acquiring the "Most Trustworthy Brand" award in both the Czech Republic and Slovakia. Our company does not solely focus on success in business. Following the principles of sustainability environmental protection, and efforts to positively contribute to the whole of society are of equal importance to us. BREWERIES AND MALT HOUSES OF PLZEŇSKÝ PRAZDROJ brewery + malt house brewery + malt house brewery + malt house brewery 180 A tradition ~M of 180 years The year 2022 was 180 years since the brewmaster Josef Groll brewed the first batch of a then new and non-traditional beer. Its unique characteristics made breweries around Europe soon begin copying this lager. Its name bears reference to the town where it originated and where it has been brewed ever since - "Pilsner". Sustainability Report 2022 CHAPTER I. ABOUT THE COMPANY 2022 results After two years of a pandemic which caused a drop in sales, Plzeňský Prazdroj saw an upturn. In the Czech Republic, the volume of beer sold was 7.3 million hectolitres, which is almost 12% more than in 2021. All our main brands did well. Thanks to targeted and long-term support for the gastronomical sector, the brewery also managed to kick-start sales in the pubs and restaurants which purchase our beer. Last year, the sales of all our lagers -Gambrinus, Kozel, Pilsner Urquell and Radegast, went up in both channels, specifically in pubs and retail. The sales of Frisco ciders increased by 20% year on year. Non-alcoholic Birell saw the biggest increase - by 21%. Plzeňský Prazdroj brewery 14/15 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS mm. it a_ Plzeňský Prazdroj is a major tax contributor 0 Plzeňský Prazdroj paid CZK 5.3 billion in taxes in the Czech Republic, CZK 2.2 billion of which was excise tax. 0 Plzeňský Prazdroj paid EUR 50.7 million in taxes, of which EUR 22.5 million was excise tax. Taxation • • • • • • Excise Income Value Real Energy Other taxation tax tax added estate tax (road tax, tax ownership withholding tax tax) MM Asahi tax code ASAHI GROUP'S TAX CODE OF ^ CONDUCTkH The purpose of the Asahi tax code is to ensure legitimate administration of tax-related issues with regard to tax governance and transparency and to balance out the interests of various stakeholders. ANNUAL REPORT OFTHE PLZEŇSKÝ PRAZDROJ, A.S. COMPANY.„ ANNUAL REPORT OFTHE PLZEŇSKÝ PRAZDROJ SLOVENSKO, AS. COMPANY.. Almost 1.7 hectolitres of beer were sold in Slovakia in 2022, which means a 1.8% increase year on year. Sales in the draught beer category have risen after two years of falls, while sales of non-alcoholic beverages have been growing now for two years. Slovaks have yet again confirmed the popularity of premium brands from the Plzeňský Prazdroj portfolio. The trend of an increased interest in lagers was confirmed by a 10% increase their sales. Radegast was the brand which saw the biggest leap, increasing its sales volume by 65%. Pilsner Urquell also did really well. It was, for the second time, awarded The 2022 Most Trustworthy Brand. The Šariš brand saw a 10% increase and has been enjoying growing popularity also outside its domestic region. A significant, 19% increase in the sales of Birell proves that non-alcoholic variants are becoming an equally appreciated part of the beer market. Sustainability Report 2022 CHAPTER I. ABOUT THE COMPANY Awards Our brands achieve success at domestic and international beer competitions. We are also grateful for the recognition of our efforts to be a transparent, responsible and generally beneficial company. We have been awarded two significant prizes in the TOP Odpovědná firma (TOP Responsible Company) rankings. For our Sustainability Report, we were first in the responsible reporting category and we were also awarded the main prize as Trendsetter among large companies. At the 58th edition of the International Hop Growers' Association Congress, our Brewmaster Emeritus Václav Berka was awarded the Class I Order of the Hop Growers' Association of the Czech Republic. The Association recognised his lifelong support for hops from Žatec (Saaz), especially the semi-early red-bine Saaz variety. We finished third in a yearly students' poll for the Most Attractive Employer organized by the Club of Employers. More than 3,000 respondents from secondary schools and universities took part in the poll. Sodexo Employer of the Year is an award based on ranking using international PwC Saratoga methodology. It recognizes companies with a great approach to their employees. Plzeňský Prazdroj won the first prize in the Pilsen region and finished 8th nationwide in the category of consumer goods industry companies with 500 to 5,000 employees. Our communication projects were recognised as well. The #jsemzpátky campaign related to the reopening of pubs after the COVID lockdown was awarded the 2022 PR Golden Lemur. Our Sustainability Report won the first prize and our communication about the FOR HOPS project finished third. Our "Gambrinus Cup Vrátil Pivaře do Hospod" (Gambrinus Cup Pulled Beer Lovers Back to Pubs) campaign won the first and and second at the Effie Awards for the most effective communication projects. It won the first prize in the categories activation marketing and beverages. Birell also stood out among beverages. Its campaign "I'll have Birell! Gladly!" finished second. In the Zlatý Středník (Golden Semicolon) competition, our internal newsletter Šnyt won the first prize. In the FMCG, beauty and fashion category, our project Olympic Flashmob Pilsner Urquell won another gold. The FOR HOPS project which helps hop growers to deal with weather fluctuations was recognised in two categories; it finished second in both the creative idea and telecommunications and IT categories. 16/17 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Company ethics Gambrinus brewery We support the principles of responsible marketing of alcoholic products and we thereby follow our own principles of self-regulation based on our Code of Commercial Communication. We believe that the deciding factor for the success of our company is its reputation. To maintain our good name, we introduced the Business Ethics Policy, which is binding not only for all our employees, but also for external colleagues, contractors, suppliers, and consultants. Responsibility and suppliers We pay a lot of attention when selecting responsible suppliers. To evaluate them we use accreditation based on risk assessment (Supplier Risk Assessment), part of which are ESG criteria. The accreditation is valid for a two-year period. During these two years, our suppliers are committed to complying with the Asahi Suppliers Business Ethics and the Asahi Suppliers Anti Bribery Policy. All documents are publicly available on the company website. Šariš brewery Sustainability Report 2022 CHAPTER I. ABOUT THE COMPANY Focus on quality - risk ® management and risk assessment The general intentions of the company are defined by the Integrated Company Policy (IMS Policy). This is directly connected to an integrated system of policies including the following: Quality Management System - ISO 9001, Environment Protection Management System - ISO 14001, Food Safety Management System - ISO 22000, GMP+, Occupational Health and Safety - ISO 45001, and Energy Management System -ISO 50001. The area of environmental and safety systems management complies with ISO standards and is part of system management by Plzeňský Prazdroj's Head Brewmaster. The integrated company management system is verified by an independent international authority according to the requirements of international ISO standards. The company management system meets the strictest European Union norms for food safety (FSMS - HACCP) and for the prevention of pollution (IPPC). We identify environmental and safety system requirements separately for each stakeholder. Procedures for the identification of product environmental aspects and also the aspects of processes and activities, are recorded in the Register of Risks and Opportunities. This register provides an overview of what risks need to be solved with the highest priority. An independent, simplified IMS policy was developed for the Proud brewery, based on its special nature. The IMS policy is introduced to all employees who share it in an appropriate way with their partners, suppliers, customers and other stakeholders. External context helps us to understand the expectations and requirements of stakeholders. Internal context is focused on achieving a long-term ability to provide products and services which meet customers' expectations and relevant legal requirements including other adopted requirements. It also ensures the effectiveness of activities and processes. The company regularly processes its Investment Plan. Most investments are focused on equipment modernisation, the improvement of product quality, occupational safety and a sensitive approach to the environment. Before being launched on the market, each of our new products must pass a rigorous due diligence evaluation, which also takes sustainability into consideration. Not only domestic and European legal aspects are evaluated, but also energy and water consumption, the amount of waste produced and the impact of the product on the environment. The projects we implement together with automation and digitalization help us to increase efficiency, control quality, simplify and ensure processes in our plants, and engage both employees and customers. Digitalization helps us outside our breweries as well. Through the FOR HOPS project, with modern technology, sensors and smart meteorological stations, we manage to help hop farmers achieve better water management and the use of fertilizers and to cope with climate change. Digitalization is also finding its way into pubs. The Querko application enables contactless payment and placing orders. Our on-line training sessions help pub owners with the promotion of their services and to attract new guests. NEW OFFICES FOR THE SLOVAK HEADQUARTERS IN BRATISLAVA Our Bratislava management team moved to new office spaces in Lakeside Park 2 in autumn 2022. Our new offices now comply with the energy standard Al and we have applied for the LEED Gold certification for green buildings. This certificate proves that the building meets strict requirements in sustainability, efficient water and energy management and, at the same time, provides a quality interior environment. 18/19 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS j_ Proud brewery Sustainability Report 2022 CHAPTER I. ABOUT THE COMPANY Velké Popovice brewery We hold a dialogue with all our stakeholders We firmly believe that keeping our partners satisfied contributes to the success and sustainability of our company. Therefore, we hold a continuous dialogue with our stakeholders and seek to ensure our activities and approach to business lead to their satisfaction and to the improvement of their own results. In the Czech Republic, we are a member of the Brewing and Malting Association, Federation of the Food and Drink Industries, and Industry and Transport Association. We are also engaged in the Czech Advertising Standards Council (Rada pro reklamu) and in the association called Business for Society (Byznys pro společnost). In Slovakia, mutually prioritised topics are discussed at the Slovak Agriculture and Food Chamber. We are an active member of the Slovak Malting and Brewing Association, Advertising Standards Council, Business Leaders Forum and the Circular Slovakia initiative. Holding a dialogue with stakeholders enables us to identify topics which have a direct impact on our company and those which, on the other hand, can be directly influenced by us. Our Materiality Matrix hat we use to rank topics helps us keep an overview of the key areas of our sustainability strategy since 2020. It was a key part of our approach when preparing our sustainability strategy. After 2020, we encouraged higher ambitions in the area of sustainability and we adopted the Better Future 2030! strategy which we will follow throughout this decade. The next analysis of important topics will be carried out in line with the ESRS double materiality standards (European Sustainability Reporting Standards). 20/21 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS STAKEHOLDER DIALOGUE Employees and Feedback, regular assessment, education and training, satisfaction survey, internal communication surveys, learning and development, raising awareness of consumers responsible alcohol consumption Suppliers ethics, transparency and sustainability in our suppliers, cooperation on projects lectures, conferences, events at universities, consultations and research of theses, expert consultations, applied research and development Non-profit expert consulting, cooperation on projects, support for organizations activities Associations and round tables, conferences, professional interest groups federations Regional and discussions, cooperation focused on maintaining cultural local partners heritage, supporting traditions, support for tourism EU, government, auditing and reporting, round table sessions, dialogue via legislature interest groups Media press releases and media events TOPICS AND CHAPTERS Strategy, People, Responsibility People, Communities, Responsibility, Water, Raw materials, About the company Strategy, Carbon neutrality, Water, Raw materials, Packaging, About the company Carbon Neutrality, Water, Raw materials, Packaging, People, Responsibility Raw materials, People, Responsibility; Communities About the company, Raw materials, Packaging Responsibility, People, Communities Communities, Responsibility About the company, Strategy, People, Responsibility, About the company, GRI Index Insights into brewing-related topics, food industry, agriculture and gastronomy Sustainability Report 2022 C H A P T ER I. ABOUT THE COMPANY £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS PLZEŇSKÝ PRAZDROJ MATERIALITY MATRIX Water protection and lack of water Investment into communities Mitigating climate change Support for sustainable agriculture ti t Relationships with local communities and regions O Responsible alcohol consumption Educating young consumers about responsible alcohol consumption Supporting local traditions Supporting the Czech beer culture Focus on family and gender diversity Age diversity and the protection of 50+ employees Support for professional schools and social enterprises Responsible strategy developed long-term Providing a safe working environment Circular economy Responsible recycling Innovative solutions for packaging Sustainable logistics Satisfaction and stability for employees Focus on a socially significant topic within our sustainable development strategy Low Medium Impact on the company High PLZEŇSKÝ PRAZDROJ SLOVAKIA MATERIALITY MATRIX Mitigating the impact of, and Droughts and the need for adapting to, climate change protecting water resources Major regulation of the business environment Insufficient support for the growers of brewing ingredients and fast changing legislation Responsible alcohol consumption Packaging policy and circular economy Production and the quality of raw materials Ageing farmers Decreasing number of customers Transparency Support for tourism and small Health and Safety of employees Lack of staff in the HORECA sector Responsible marketing Protection zone regulation in Veľký Šariš Ageing staff and diversity Talent development Insufficient sustainability of the HORECA sector Stating the nutritive values of products Negative communication by the government Low Medium Impact on the company High 22/23 CHAPTER TWO 1 Strategy When formulating the strategy of our company, we do not only think about our production and business, but especially about the impact our activities have on the environment and people in and outside the company. We perceive sustainability as an opportunity to be economically successful and to preserve the brewing tradition for future generations. I come from Most and I grew up among surface mines, chemical plants and constant smog. One day I saw a TV documentary showing what the surroundings looked like in the past. Woods, meadows, birds, and animals. I still remember that dreadful feeling I had while watching it. I told myself back then that in my life I would do anything to prevent a repeat of such a situation. And that is what happened. For my whole career, I have been striving to encourage people and companies to act responsibly. To their surroundings, to the environment, to others and to the whole of society. It is my personal mission. When I was deciding what to do next, three years ago, Plzeňský Prazdroj was the number one choice for me. Great people with energy and passion for the industry, but also with respect towards tradition and nature, something on which the brewery was founded. We imprinted these values in the overall company strategy, which basically "lives on" sustainability and responsibility towards people and society. I am proud of this because if there are companies like Plzeňský Prazdroj in the world, there is hope that those awful things I experienced will not repeat. Quite the opposite: our and future generations will preserve what I saw in the documentary back then. Corporate Affairs & Communication Director, with Prazdroj since 2020. ZPET NA OBSAH CHAPTER II STRATEGY 28 Strategic goals 30 2022 in a nutshell 32 Sustainability strategy management 33 Fulfilling the strategy 34 Purpose To the future! Pillars of the strategy CARBON NEUTRALITY WATER RAW MATERIALS PACKAGING CIRCULARITY WASTE DIVERSITY RESPONSIBILITY Our commitments in the area of sustainable management are in compliance with Asahi Europe & International Sustainability Strategy adopted in 2020 and include all three ESG (Environmental, Social, Governance) pillars. As part of Asahi Group we are also members of the global RE100 initiative focused on using energy from renewable resources. The group also committed to seek to meet the Science Based Targets to limit global warming to 1.5°C above pre-industrial levels. The 2030 climate targets have also been validated by the Science Based Targets Initiative.. We support all 17 UN (SDGS) sustainable development goals determined at the UN summit in September 2015. We approach some of these goals with more attention to detail, specifically those which are directly related to our activities: GOOD HEALTH ANDWELL-flENG Ifl REDUCED IU ■BHIAMIE «4 lESPIWSlBLE It. CONSUMTIOI CONSUMPTION HHD PRODUCTION I CO More about Asahi's approach to sustainability principles and environmental principles. sustainability at the asahi group. environmental principles an Division Sustainability Report 2022 CHAPTER II. STRATEGY Our commitments CARBON NEUTRALITY All electricity for our breweries will come from renewable resources. WATER We will reduce the average amount of water used to produce 1 litre of beer to 2.75 1. WASTE No waste from our breweries will end up in a landfill. RESPONSIBILITY We will increase the engagement in our prevention programmes by 20%. A fifth of beverages in our portfolio will be non-alcoholic. o CARBON NEUTRALITY Our breweries will be carbon neutral. We will reduce the carbon footprint of our value chain by 30%. WATER Water for our breweries will come only from sustainable sources. CARBON NEUTRALITY We will have a net zero carbon footprint throughout our value chain. RAW MATERIALS All agricultural ingredients used to produce our beer will originate from sustainable PACKAGING All packaging of our products will be reusable or recyclable and, at the same time, at least half of the packaging will be made from recycled material. We will stop using disposable plastic materials made from primary materials. DIVERSITY We will achieve an equal number of men and women in executive positions. RESPONSIBILITY 25% of beverages in our portfolio will be non-alcoholic. 28/29 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Sustainability Report 2022 CHAPTER II. STRATEGY 2022 in a nutshell Green steam in Pilsen The amount of our emissions was influenced most by the transition to heat from renewable resources at our Pilsen plant. This means a 47% reduction of C02 emissions at all our breweries in the Czech Republic and Slovakia and a 76% reduction at the Pilsen brewery itself. Smart Taproom We launched a project to monitor the complete journey of draught beer in a pub from the water and energy consumption point of view. Based on data gained, changes to the tapping equipment will be proposed so that outlets can save up to a third of water and energy. The most modern automated warehouse A new, and our most modern, completely automated warehouse in Pilsen will speed up processes, help our people with demanding work and, in addition, thanks to the technology applied, help us reduce the overall carbon footprint. The first year of the FOR HOPS project After a year of thoroughly measuring and gathering data we have the first tangible results. These will help us understand how hops reacted to the extreme weather conditions last year and what caused the extremely poor harvest. A better understanding of how hop plants react to external conditions will help hop farmers adapt to climate change in the future. 2.29 litre water consumption per litre of beer at the Radegast brewery. The Radegast brewery achieved record low values of water consumption, specifically 2.29 litres per litre of beer, which is 0.121 less than the previous year. This makes it one of the best European breweries when it comes to water management. The FOR BARLEY initiative to save Slovak barley This project, focused on sustainable barley farming in Slovakia, is based on the principles of agroforestry, in other words growing agricultural crops in combination with woody plants within the same area. We support the planting of woody plants in locations where this will have the greatest impact. 30/31 £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS More returnable bottles in Slovakia The proportion of our products in returnable packaging is increasing, especially of those in returnable bottles. In 2022, we sold 71% of our products in returnable packaging in the Czech Republic and 57% in Slovakia. Their use increased by 8% year on year in Slovakia, and Prazdroj is the Slovak leader ain terms of their sales. Every eighth beer in the Czech Republic and every seventh beer in Slovakia is non-alcoholic Non-alcoholic beverages are currently the fastest growing part of the beer market. The sales of non-alcoholic Birell increased by 21% in the Czech Republic and by 19% in Slovakia. The deposit system and closing the cans cycle in Slovakia The first year of the deposit scheme has already produced significant results. We used the opportunity to buy the material collected - aluminium cans - and used them to produce our new cans with a 75% share of recycled material. Award for equal remuneration of women and men We were the second Czech company to receive the prestigious international Equal Salary Certification award for equally remunerating men and women. The certification is granted by the Swiss organization EQUAL- SALARY Foundation based on a thorough audit carried out by the consultants PwC. Increase in the level of recycling waste from our breweries Thanks to our long-term efforts, we are currently able to recycle 100% of all secondary raw materials originating from our production. We increased the level of recycling by 17% in the Czech Republic and by 9% in Slovakia year on year. We are not indifferent to what is happening to our neighbours Together, we contributed CZK 3.5 million to help Ukraine after the outbreak of the war. Our volunteers organized material collections to help people fleeing from war. Our beverages were sent as part of this help. Sustainability Report 2022 CHAPTER II. STRATEGY Sustainability strategy management Sustainability is a priority for us and it is reflected both in our long-term company strategy and daily operation. We have identified important areas like achieving carbon neutrality, reducing water consumption, care for raw materials and for our suppliers, repeated use of our packaging material, widening the non-alcoholic portfolio, and supporting diversity. We have set specific goals in all these areas and we continuously monitor and assess their delivery The achievement of sustainable development KPIs is taken into consideration during the evaluation of top management and the company executives. Functional directors are responsible for the delivery of strategic goals, and each department has a team member who represents the sustainability strategy. The consistency of the strategy is supervised by the Executive Committee consisting of the members of the company top management team. 0 0 I 0 Steering Committee = Managing Director + Functional Directors Corporate Affairs Director Sustainability and Integrated Projects Lead (+ Sustainability Manager, Integrated projects Manager) o Sustainability Team = strategic pillars leaders (Corporate Affairs, Marketing, Procurement, Innovations, Production, Raw Materials, Logistics and Planning, Human Resources, Risk Management) S-EBITA In this day and age, the assessment of a company's efficiency cannot mean a competition between finances and sustainability. Therefore, we decided to use a benchmark for financial efficiency which also includes the impact of our business on the environment, and which motivates management to make decisions and adopt measures which will mitigate this impact. A pilot phase of the calculation was carried out in 2022. C02 emissions Scope 1 and 2, C02 emissions Scope 3 of our packaging material, and the proportion of plastic in the primary material used in our production were used as measurable parameters. The costs of these externalities are deducted from our actual economic result. The S-EBITA indicator is used for evaluating the return of long-term investment projects. We educate In recent years, we have been raising the awareness of environmental issues with our employees. Last year, we focused on the social area. Topics such as diversity, inclusion, leadership, the development of teams, and sharing personal experience were also mentioned in our "Inspirano" programme. Our Corporate Affairs Director interviews interesting guests live three times a year, sharing stories and discussing current developments in the business world. We actively communicated inspirational stories of women working in the brewing industry and parents balancing their work and family lives. 207 leaders in our company participated in diversity and inclusion workshops. [More in the People chapter) Departments of the Asahi group also underwent "sustainability training", the aim of which was to not only improve awareness of the strategy, but also the specific role of each department when fulfilling this strategy. We also share our experience at expert seminars and conferences as part of our cooperation with universities and other institutions. 32/33 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Fulfilling the strategy The total energy consumption in the breweries was, just like in previous years, strongly influenced by the COVID-19 pandemic. The operation of restaurants was hugely limited which drove a decrease in the sales of keg beer. Pandemic-related restrictions were lifted for the second quarter of 2022, which meant an increase in the volume of sales. The war in Ukraine which broke out in February 2022 has had large impact on our business, especially in terms of increasing prices of energy. We managed to meet the planned goals in the area of water consumption and the overall direct energy consumption for the whole group of breweries and malt houses in the Czech Republic and in Slovakia. [More in chapters Carbon Neutralitu and Water.) We keep increasing the proportion of recycled material in our packaging. The only category where we did not manage to meet the goal was recycled paper. This was mainly caused by a lack of material on the market. We are planning to beat the challenges set by our commitments in the recycled aluminium category with the help of a deposit system. [More in the Packaging chapter) In Slovakia, we are heading towards a situation where we will already achieve two strategic goals by 2023: zero waste in landfills and full circularity of packaging. We look at our business in a comprehensive way and we try to consider the whole journey of our product from a barley grain on the field to a correctly poured beer in a pub. Our responsibility does not end at the gates of our breweries. Therefore, we engage our partners and our customers in our journey to sustainability. It starts with cooperation with raw materials suppliers. [More in the Raw Materials chapter). It continues with looking for alternative solutions for production and transport. [More in the Carbon Neutrality chapter). Nor do we neglect cooperation with our customers and their communities. [More in the Communities chapter). Sustainability Report 2022 CHAPTER II. STRATEGY £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Our mission The new mission helps us to define our strategic decisions and maintain the right direction in business, growth and in our wider role within society. Our mission of "Creating meaningful connections" is based on what is most natural to our area of business. Bringing people together and encouraging a sense of belonging. Together we can thus make a change for the better, and the planet and society can benefit. Creating meaningful connections We want to be a pioneer at PLANET POSITIVITY IN EVERYTHING WE DO We want to SERVE UP A POSITIVE AND INCLUSIVE EXPERIENCE TO PEOPLE AND SOCIETY We will reach zero negative impact on the environment and we will actively contribute to the recovery of the planet through our brands, partnerships and initiatives. We are going to do what we do best: Bring people together and build togetherness. Encourage tolerance and open-minded and inclusive experiences. Recreate the image of beer and encourage the idea that drinking alcohol in moderation has become a trend. 34/35 Carbon neutrality Reducing the carbon footprint of our company is an area we have been focusing on long-term and where we keep finding space for improvement. We continue investing in changes that will help us follow through with our commitments leading to carbon neutrality. We expect upcoming changes in energy management will be through consumption monitoring, and equipment and technological changes and optimization. £ BACK TO CONTENTS CHAPTER III. CARBON NEUTRALITY 39 40 43 44 Renewable energy Investment and Energy consumption Transport resources modernization and emissions and logistics Transition to renewable resources Green steam in Pilsen A significant decrease in the production of emissions was achieved by transitioning the Pilsen brewery to supplies of heat from renewable resources. We purchase heating energy from wood chips from the Plzeňská teplárenská company, and in a year since signing the contract for green steam we have reduced the carbon footprint by 38 thousand tonnes of C02. The total volume of emissions from all the breweries in the Czech Republic and in Slovakia was reduced by 47%, while the Pilsen brewery alone decreased its emissions by 76%. The sustainability of the wood source was also confirmed through an audit carried out by the supplier. Our commitment: Our breweries will be carbon-neutral by 2030. Sustainability Report 2022 CHAPTER III. CARBON NEUTRALITY Biogas and photovoltaics at water treatment facilities At the Nošovice and Velké Popovice breweries, we produce biogas at the water treatment plants and use it for heating. We are installing photovoltaic panels for the production of electricity at the water treatment plant in Velké Popovice. The installation of another photovoltaic system is planned for Nošovice and Veľký Šariš in 2023. 40/41 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Automated warehouse in Pilsen In the Pilsen brewery, a new fully automated warehouse started operation in January It will increase the dispatching capacity by 50%. The applied technology makes this warehouse the most modern at Prazdroj and, at the same time, one of the most modern warehouses of this type in the Czech Republic. Thanks to faster dispatching of bottled and canned beer, the warehouse equipment will be able to release 290 pallets an hour, which is almost nine fully loaded trucks. The main building is a sheathed warehouse with an independent racking system to which goods are transported from the packaging line by an automated pallet transport system. Twenty-eight trucks, or gondolas, move on rails with an overall length of over half a kilometre. Thanks to the racking system and the way of transporting goods, we will not only save space and transport costs, but also limit the operation of forklift trucks. In the warehouse, we currently use them only for loading trucks, which saves 500 tonnes of C02 annually. Further energy savings were achieved thanks to introducing automated stacking cranes which handle the bottles and cans right in the warehouse. This technology is based on an energy recuperation system. The brewery is counting on the installation of photovoltaic panels on the roof of the building. These will cover up to 30% of the energy consumption of the warehouse. The construction of this warehouse costing 780 million Czech crowns was the biggest investment in the Pilsen brewery since 2006. Sustainability Report 2022 CHAPTER III. CARBON NEUTRALITY Bottle-filling line and new lagering tanks at Velké Popovice Returnable glass bottles are the best form of beverage packaging from the environmental point of view, and increasing their share in our portfolio significantly helps us reduce our carbon footprint. They are currently enjoying increasing interest from our customers as well, especially after we completely stopped filling beer into PET plastic bottles. The new packaging line at Velké Popovice will help us meet the demand. With a capacity of 50 thousand bottles an hour it can cover 31% of the portfolio of returnable bottles in the Czech Republic and Slovakia. 97.3% of its capacity is in continuous operation, which further helps improve energy efficiency throughout Prazdroj. The shut-down necessary for the installation of the new line was also used to replace some older machinery to repair the floor and for an overall renovation of the building. The lagering and fermentation tanks underwent modernisation as well. The original tanks in cellars requiring demanding manual maintenance were replaced by 14 fully automated cylindro-conical tanks. The overall maturation and fermentation process was thus significantly simplified and made more efficient. The overall investment exceeded CZK 620 million. 42/43 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS ENERGY CONSUMPTION AND CARBON FOOTPRINT IN PRODUCTION SCOPE 1, 2 Energy consumption (MJ/hl) Pilsen Nošovice Velké Popovice Šariš 84.93 84.08 Product emissions (kg C02e/hl) Pilsen 2022 Velké Popovice 5.41 5.45 Due to the intensive use of the oldest bottle-filling line, there was an increased energy off-take at the Pilsen plant. The overall greenhouse gases emissions per product unit was decreased to 3.56 kg Co2e/hl in 2022 from 5.51 C02e/hl in the previous year. Other measures applied Modernization In 2022, we continued working on replacing obsolete parts of the energy distribution network and on other projects to help us improve our energy management. Some examples are improvements to heat insulation and piping. We are also installing energy-saving LED lights in all our compounds. The process of modernising our distribution centres is continuing. Thanks to this, we have been able to maintain roughly the same level of energy consumption at the distribution centres as in the previous years. Replacing part of the handling trucks fleet Our cooperation with the winner of a Europe-wide tender for the supplier of handling equipment started last year. This will not only lead to the replacement of existing technology but it will help us to find a more efficient and safer machinery solution for individual plants. Due to the gradual modernisation and extension of Plzeňský Prazdroj production plants, it is impossible to completely unify the equipment. It is necessary to rather look for a specific solution for each part of the plants. The first step was the supply of 66 electric trucks/trolleys with various specifications - from manually guided to counterbalance ones with a 5-tonne capacity for the Pilsen plant. A major change compared to the previous equipment is replacing LPG-driven trucks with electric ones. A smart system of recharging and transparent servicing ensures a long life for batteries and the trucks themselves. Sustainability Report 2022 CHAPTER III. CARBON NEUTRALITY £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Transport and logistics measures We continue testing MB eSprinter and Volvo FL electric vehicles in our distribution system. 2023 will see the testing of an MB Actros 6x2 heavy electric delivery truck and an MB Actors 4x2 electric trailer truck. We have also been gradually testing hybrid and electric personal cars in the management car fleets. The efficient use of vehicles and an economical driving style is supported by yearly training and a competition for the best driver. All measures within the area of secondary distribution led to a reduction in emissions by 0.7%. We also repeatedly strengthened railway transport on the line Pilsen - Veľký Šariš. This is very demanding in terms of logistics, finances and time, but it helps to save 70 tonnes of CO,. INTERMODAL TRANSPORT At the Pilsen plant, a 45-ft transport container with a capacity of 33 europallets is loaded. Illllllllllllllllllllllllllllllllllll I ■ The container is transported on a trailer truck to the intermodal transport terminal near the town of Nyrany. (18 km from the Pilsen brewery) At the terminal, the container is loaded by a portal crane onto a railway wagon adapted for the transport of containers. h mil* wm The train set departs in the direction of the Kosice terminal. On its way, the wagon is re-attached to different train sets for the purpose of freight consolidation. At the terminal in Košice, the container is reloaded back onto a trailer truck which transports it to the Veľký Šariš brewery warehouse. Four journeys in both directions are -> carried out during one month. Beer is <-transported to Vel'ky Saris, and empty packaging is transported back. More efficient delivery terms and conditions An adjustment to the minimum deliveries to our customers enabled us to make deliveries more efficient. We significantly reduced the number of stops of secondary distribution vehicles. The overall C02 reduction emerging from this measure was 293 tonnes in Slovakia and 553 tonnes in the Czech Republic. 44/45 I grew up in a village, and we had a large garden where we grew our own potatoes and vegetables. My parents still grow great vegetables. I did not like gardening at all at that time and I could not imagine that I would have something to do with agriculture in the future. --—"~" —~—. ^--^.------—*-J -—— when I was standing in a hop garden and explaining for the first time to the hop growers that we would like to help them to adapt to climate change, they looked at me like I was crazy. I did not know much about hops back then but, fortunately, I am not afraid to ask questions. Some Wellington boots took up long-term residence in the trunk of my car and after Since then, I have learned a lot about hops, and I see more and more sense in this work. It would be such a shame to lose the beautiful Saaz region landscape covered with hop fields, and which looks different every week in the summer. When we were starting all this, I had no idea I would repeat something similar with barley farmers a few years later. Sustainability & Integrated Projects Lead, with Prazdroj since 2017. BACK TO CONTENTS CHAPTER IV. FROM GRAIN TO GLASS 50 Emissions from grain to glass 52 Absolute emissions 52 Explanatory notes 53 Categories of emissions More than 80% of emissions related to our products are produced outside our breweries. They are related to growing and processing barley and hops, to the transport of inputs to our breweries and finished products to our customers, to the packaging material we use or to cooling beer in stores and pubs. We have been able to continue reducing the emissions from production in overall amount in Scope 1 and 2 over the long term. While in 2019, which we set as a starting point for measuring emissions reductions, our production generated 20% of all C02 emissions, it was only 13% in 2022. Since 2019 we have reduced our emissions in Scope 1,2 and 3 by 9% in the Czech Republic and in Slovakia. Reducing emissions in our value chain is primarily driven by activities in the area of packaging material where reaching a higher level of circularity usually means reducing the carbon footprint of our packaging material. Details are described in the Packaging chapter. A great part of these emissions is connected with the cooling of our products by our customers, especially in pubs and restaurants. Our Smart Taproom project will help us reduce our carbon footprint in the longer run. This project is described in the Water chapter. Reducing external inputs for growing crops and following the principles of regenerative agriculture can also help us towards this aim. These expectations are being tested through the Flowers for Hops project, which is elaborated in the Raw Materials chapter. Our commitment: We will reduce the carbon footprint of our value chain by 30% by 2030. In 2050 at the latest, our carbon footprint will be zero across the whole value chain. Sustainability Report 2022 CHAPTER IV. FROM GRAIN TO GLASS Emissions from grain to glass in 2022 AGRICULTURE AND RAW MATERIALS Hop and barley growing, all related works in fields and other activities necessary to ensure a successful harvest. PROCESSING BREWING INGREDIENTS Germination, drying and farther processing of malt at malt houses. PRODUCTION IN BREWERIES Beer brewing, fermentation, the maturing process and packaging at the brewery. 50/51 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS PACKAGING Bottles, cans, kegs and other packaging, including secondary packaging used during transport on pallets. 30% Scope 3 TRANSPORT AND LOGISTICS Transportation of raw materials and packaging to breweries and transportation of finished products to customers. 15% Scope 3 o COOLING Cooling our products at pubs and in retail. 19% Scope 3 Sustainability Report 2022 CHAPTER IV FROM GRAIN TO GLASS Absolute emissions in tonnes, both direct and indirect (t co2e) ■ ^ ■5^ 15^ 2019 20,3 07 1 61,439 297 774 Tota 1 ^y/,//^ 379320 2020 20,589 1 58,772 cz 295,616 |°4a977 2021 20,6 1 47,122 29°.134 letleo 2022 20,6 1 ?0 4-4-5 295 705 Total 2019 5,636 1 1,365 -z-z nc/ Total 33,064 45;|23 2020 6,075 1 1451 ! SK 2021 6,016 77BC, Total 'i/'Hb4 45,225 2022 6,213 I 1386 44 072 Tota 1 ^,u/z 51671 2019 25,943 | 62,804 330,838 42^485 2020 26,664 1 60,223 CZ sk 333,738 42^625 2021 26,649 | 47,753 327 998 Total ^/,»»a 402,400 2022 26,864 1 21,832 339 777 Tota 1 .5.5»,/// 388?473 EXPLANATORY NOTES The model for the calculation was prepared in compliance with the accounting and reporting standard of the 2004 Greenhouse Gases Protocol and its amendment and the accounting and reporting standard for company value chains of the 2011 Greenhouse Gases Protocol. It also takes into account version 4.1 of the 2019 BIER sector guidelines for emissions of greenhouse gases in the beverage industry. This methodology also takes into account the category rules for the ecological footprint of PEF products for beer from the European Commission from 2018, the accounting and reporting standards for life cycle assessment of the 2011 Greenhouse Gases Protocol, and the principles of the PAS 2050:2011 certification. The methodology of the calculation of emissions related to our value chain in the Scope 3 category processed and the calculation was carried out and verified by Verco Advisory Services Ltd. The methodology was externally verified by Lloyd's Register Quality Assurance Limited. The system boundary includes all activities resulting in emissions which substantially contribute to the overall amount of the greenhouse gases emissions from beer across its life cycle. It covers all products manufactured in the Czech Republic and Slovakia, including for export, with the exception of the volume brewed based on licensed production abroad, which was excluded due to limited access to data and the ability to influence the situation. The absolute values also include employee travel, which is not shown in the overview on the previous page, and accounts for less than 1% of our total emissions. The calculation takes six greenhouse gases into account. These are the greenhouse gases the Kyoto and the Montreal Protocols apply to: carbon dioxide (C02), methane (CH4), nitrous oxide (N20), sulphur hexafluoride (SF6), fully fluorinated hydrocarbons (PFC) and fluorinated hydrocarbons (HFC). The overall footprint is expressed as the carbon dioxide equivalent (Co2e) using the values of the global warming potential provided by IPCC (2007). SCOPE 1 Direct emissions related to burning fuel in solid or mobile sources owned or controlled by the company, and emissions produced during technological processes or by releasing cooling substances. SCOPE 2 Indirect emissions resulting from the consumption of purchased or externally supplied electricity or thermal energy, technical steam and cool air. SCOPE 3 Other indirect emissions resulting from our value chain, for example emissions related to growing or processing raw materials, input transport and the transport of finished products, packaging material and the use of products by end consumers. 52/53 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Categories of emissions AGRICULTURE C02 emissions intensity (kg C02e/hl) per product in Scope 3 This covers emissions from all the raw ingredients necessary for beer brewing, especially barley and hops. It includes emissions related to growing ingredients, including fuel consumption on farms, energy production and consumption on farms and the production of fertilizers and agents for the protection of plants. PROCESSING BREWING INGREDIENTS C02 emissions intensity (kg C02e/hl) per product in Scope 3 This includes emissions from the malting of barley and hop processing. The figures of 79% of emissions of Scope 3 related to processing raw materials for the Czech Republic, and 51% for Slovakia are calculated based on data about Scope 1 and 2 emissions directly from suppliers. This also covers Scope 1 and Scope 2 emissions related to the operation of our own malt houses in Pilsen, Nošovice, and Veľký Šariš. O PRODUCTION IN BREWERIES W II m C02 emissions intensity (kg C02e/hl) per product in Scope 3 This covers emissions related to burning fuel for heat production at our breweries and emissions related to the production of electricity consumed at our breweries. It also includes emissions from purchased C02, emissions from water consumption in beer production and emissions related to the purchase of chemical substances used at our breweries. Sustainability Report 2022 CHAPTER IV. FROM GRAIN TO GLASS £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Categories of emissions PACKAGING C02 emissions intensity (kg C02e/hl) per product in Scope 3 This includes all emissions related to the production and end of life of purchased packaging material from raw material extraction to the final stage of production. It covers all purchased primary, secondary and tertiary packaging materials used for packaging finished products. The figures of 73% of emissions from packaging material in the Czech Republic, and 89% of emissions from packaging material in Slovakia were calculated based on data about Scope 1 and 2 emissions directly from suppliers. The emissions of the supply chains of these suppliers are calculated using secondary data sources. The calculation methodology for this year does not yet take into account the impact of the deposit return scheme in Slovakia. LOGISTICS W If m C02 emissions intensity (kg C02e/hl) per product in Scope 3 This covers emissions in all transport types used for transporting barley from farms to malt houses, emissions from the transport of malt and other brewing ingredients, and emissions from the transport of packaging material to breweries. Emissions are calculated using estimated distance between suppliers to production sites. The subsequent logistics include all logistics activities related to the distribution of finished products to points of sales. This includes both domestic and export logistics. For 2022, the values of 52% of emissions from the transport of finished products in the Czech Republic, and 83% in Slovakia were calculated using actual fuel consumption or data based on distances. The remaining emissions were calculated using the average distances and expected type of vehicle. These values do not include emissions of greenhouse gases related to energy consumption in warehouses and secondary distribution centres after the primary distribution centre. These values do not include emissions of greenhouse gases connected with the transport of waste from the end consumer to landfills or recycling centres. COOLING C02 emissions intensity (kg C02e/hl) per product in Scope 3 This includes the electricity consumed by cooling devices in points of sales -refrigerators in stores and outside stores, and tapping devices in gastronomy establishments. It covers emissions resulting from electricity production and losses of cooling gas. It does not include emissions from household storage and cooling of the finished product by the end consumer. EXCLUDED FROM THE CAI Emissions related to various forms of business travel by air, railway, sea and road are excluded from the overview as these make up less than 1% of the total amount of emissions. Promotional and marketing materials make up less than l°/o of the overall emissions. These were thus excluded based on the low quantities of emissions and unavailability of to data. Energy consumption related to the storage spaces and distribution centres of our customers - due to unavailability of data and the lack of ability to influence the situation. These are mostly warehouses of our customers, especially in retail and wholesale. It is difficult to calculate and influence emissions connected with capital goods. Estimates based on total capital expenditure quantify total emissions as less than 1% of total group emissions. Capital expenditure was excluded from the system boundaries based on the level of their importance and the inability to influence them. It is very difficult to measure emissions related to transporting beer from retail to our consumers. These we excluded due to a lack of data and the inability to influence the situation. For the same reason, the boundaries of the system do not include the cooling of beer at the end consumers. 54/55 Water Water is as important for the brewMgljkidustry as it is for life on the planet itself. 2022 was an average year in terms of precipitation, but periods of draught in the summer reminded us and farmers how much we should appreciate water. Therefore, water and its sources were in the centre of our attention throughout the year. I probably should not be saying this, but I actually like water a little more than I like beer. When I was a small boy, our granddad used to take us swimming in the Uslava River, not far from Pilsen. I have been in charge of water management since the moment I joined the brewery as a trainee. I distinctly remember that 10 years ago we had a discussion at the Nosovice brewery about whether it is even possible to reduce the use of water in production below 3 hectolitres per hectolitre of beer. It seemed utterly impossible and something akin to the Holy Grail. Today, we are at 2.24 hi of water per hi of beer. And we keep reducing this amount. My estimate is that we will get below 2 hectolitres by the end of the decade. It will not end there, though. The ultimate goal, of course, is to get to a one-to-one ratio. It sounds like Utopian, but this is also how it sounded in Nosovice 10 years ago. PETR BILEK Senior Process Engineer Manufacturing Development, with Prazdroj since 2011. BACK TO CONTENTS CHAPTER V. WATER 60 Water resources 61 Reducing consumption 63 Behind the brewery gates 64 Smart Taproom In cooperation with experts from the Antea Group, we carried out audits focused on solutions to risks related to water supply for breweries. We also carried out an assessment of the vulnerability of water resources in the surroundings of the breweries in Pilsen, Velké Popovice and Nošovice, and the same audit awaits the Šariš brewery in 2023. As part of this vulnerability assessment (SVA), an analysis of the conditions of local water resources is carried out and helps to identify potentially vulnerable spots and risks. The results of the audit confirmed that our water resources are not under direct risk and that they are in good and sustainable condition. No negative impact on water , . . . . current drought resources in areas where we operate showed when our activities were assessed. situation * Note: SVA is in compliance with AWS and TCFD standards. Sustainability Report 2022 CHAPTER V. WATER Water resources of our breweries Pilsen We source more than half of our water from our own five wells in the Roudna district. The rest is provided by suppliers sourcing it from Mze and the Uhlava Rivers. Velké Popovice We source the major part of our water from 11 wells located within 2 kilometres from the brewery. The rest is provided by a supplier, the Švihov dam being the source. Nosovice Radegast uses water from the Moravka River and three of its own wells nearby. Velký Šariš The brewery uses water from deep wells in the Torysa River spring area. Its own wells are another source, and also provide some water for the malt house. 60/61 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Reducing consumption In terms of water consumption, we consider 2022 a very successful year. While water consumption per litre of beer was about three litres of water in previous years, we got under this difficult-to-achieve value in 2022. The Radegast brewery achieved record low water consumption again, specifically 2.29 1/1 of beer, which is 0.121 less than the previous year. This amount refers to the total amount of water the brewery needs for producing and packaging beer. This thus does not refer only to water in beer itself but also to the water in the beer itself, but also to the water which steams off during production, and the water used for sanitizing, rinsing, disinfecting, and cooling. The Radegast brewery achieved an average 2.29 1 water consumption per litre of beer, which is 0.121 less than the previous year. We continue optimizing our equipment with the "Clean in Place" technology, which enables us, for example, to use bag-free stainless beer tanks in bulk. We also use ultrafiltering units which collect waste water and clean it to become drinking water we can use, for example, for rinsing. Sustainability Report 2022 CHAPTER V. WATER OTHER ECONOMY MEASURES AT OUR BREWERIES PILSEM A new automated warehouse with three 838-m3 retention tanks built underground brought about large savings. The brewery reuses retained water for cooling the production equipment at the nearby Gambrinus brewery. Another 0.10% reduction in annual consumption was achieved thanks to new kieselguhr filtration. The replacement of part of the ammoniac cooling equipment with an air-cooled dry condenser helped us save 0.022 I of water per litre of beer. VELKÝ ŠARIŠ We introduced a water cascading system in returnable bottle pasteurisation process. Water used for cooling, is later reused when the bottles are filled. This repeated use helps to save 0.05 l/l. NOSOVICE A project to reduce water pressure in the water piping system in the brewery compound brought about further reduction to already record low water consumption, enabling savings of 0.031/1. PILSEN BREWERY AVERAGE AMOUNT OF WATER USED TO MAKE 1 L OF BEER VELKE POPOVICE BREWERY THE DEVELOPMENT OF THE AMOUNT OF WATER CONSUMED AT BREWERIES OVER THE PAST 10 YEARS (TOTAL l/l OF BEER) 3.6 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 62/63 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Behind the gates of our breweries A unique system for the biological cleaning of rainwater from the brewery compound was built at the Radegast Brewery in Nosovice back in 2002 The system consists of several connected ponds that clean water in a natural way and, at the same time, increases the variety of biotopes in the Moravka River flood plain. In this way, over 60,000 m3 of rain water is cleaned every year. [A detailed description can be found in our 2021 Sustainabilitu Report.) In Velke Popovice, we started a project to improve the quality of water in the brewery pond. The first phase is the application of special bacteria which remove organic mud and, at the same time, reduce the amount of nitrogen compounds and other nutrients in the water. The bacteria removed 2,400 m3 of organic mud from the brewery pond after the first dose. The project also improved the visual quality of the water, eliminated blue-green algae, and increased the concentration of oxygen in the water. Together with hop farmers and malting barley growers, we are looking to save more water and to help its retention in the landscape. Our cooperation is described in more detail in the Raw Materials chapter. Sustainability Report 2022 CHAPTER V. WATER £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Smart Taproom h h h __________ liiir WW We monitor the whole journey of beer from the keg to the glass. About 30 sensors in each pub record the temperature of the keg storage space, the flow rate of beer through beer piping, the temperature in the tap room, the temperature of the beer at the moment it is being poured into a glass, the overall energy consumption and water consumption in various parts of the tapping device. Saving water is also one of the goals of the "Smart Taproom" project. With this project, Plzeňský Prazdroj cooperates with the Czech Institute of Robotics, Informatics and Cybernetics at CTU, and Microsoft, Adastra and Smart Technology. The goal is to be able to monitor the whole journey of draught beer in a pub. Therefore, more than 1,800 sensors in 45 Czech and 17 Slovak pubs will monitor the whole journey of beer from storage spaces in cellars, to cooling boxes, to beer piping and finally to a poured glass, throughout a 12-month period. Apart from energy consumption, the project also focuses on water consumption in the process of care for beer and beer glasses. Based on data gained, changes in the tapping equipment will be proposed in order to help outlets can save water and energy. At Prazdroj, we are already working on finding technological solutions which will enable water recuperation, reduce the water needed for rinsing, and on other equipment improvements. 64/65 CHAPTER S I X At university, I wrote my bachelor and diploma theses about barley and malt. Working at a brewery was the next logical step, even though a woman at a brewery was a scarce thing back then. I am happy to work in the field I studied. It is important to manage the quality of raw materials for beer, and I like taking care of barley, hops and other ingredients at the Šariš brewery. It is work that makes sense. In addition, the view of a barley field waving in the wind under a blue sky is very soothing. We participate in field days and check the quality of crops. The journey of beer starts in the field. Barley forms the base of beer - body and soul. We buy barley for the Šariš malt house in Slovakia to support Slovak farmers. Farmers also grow new varieties for us which we want to try, so we always try to make both sides satisfied. When we receive barley, it is up to me to determine how we will process it - at what temperatures, at what humidity level, etc. The grain is alive and sometimes does its own thing.. It does not listen and do exactly what you want. This is the beautiful thing about it, though. To work with it so that in the end it is always our Šariš. Beer with a sparkle. GABRIELA GALAJDOVÁ Malting Process Technologist, with Prazdroj since 2019. £ BACK TO CONTENTS CHAPTER VI. RAW MATERIALS 70 One of the biggest barley customers 71 For Barley 72 New barley varieties 73 For Hops 76 Flowers for Hops D CUM MIR 0 MDUmTHIM We put a lot of effort in selecting farmers to work with. We make sure they take proper care of their soil. We observe whether they follow the right procedures when sowing and taking care of the plants, and during harvest, storing and transport. Thanks to these requirements, we can be sure that we always use local raw materials of the best available quality. This, together with traditional recipes and production processes, has allowed us to use the protected geographical indication "Czech beer" for our products. There are many other areas related to sustainable agriculture, from reducing the carbon footprint, to saving water while growing crops, to limiting chemicals and fertilizers. Ill HESF0NSB1E \C CDNSWVTIOI CDNSWVTION MDnOHICIION CO Our commitment: By 2030, beers by Prazdroj will be brewed only using raw materials originating from sustainable agriculture. Sustainability Report 2022 CHAPTER VI. RAW MATERIALS Barley 1 We buy all the barley for our malt houses from local Czech and Slovak farmers. Prazdroj brews beer primarily from domestic barley varieties, which enable a lower level of fermentation, lending Czech beer its full body. All barley is bought exclusively locally and processed in a traditional way in our own malt houses in Pilsen, Nošovice, and Veľký Šariš. 72% of our barley consumption comes from Czech and Slovak farmers. We purchase the rest from suppliers who guarantee its local origin. Prazdroj has thus, on a long-term basis, been one of the biggest customers of barley in the Czech Republic and Slovakia. IN 2022, WE PURCHASED 152,033 24,624 tonnes of barley in the Czech tonnes of barley in Slovakia Republic 70/71 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS The FOR BARLEY initiative for saving Slovak barley The area of fields of barley in Slovakia has been decreasing for the past decade. In 2012, malting barley was grown on an area of 70 thousand hectares. By 2021, this area had decreased by more than a fourth to 50 thousand hectares. Many farmers are worried they will not be able to ensure the required quality and volume due to the changing climate conditions. This challenging situation many barley growers have to face is, to a large extent, caused by practices applied in the period of collectivization of agriculture. Fields were consolidated into huge units and natural landscape features which ensure the variety of terrain were eliminated. Large-area agriculture led to a decreased ability of the soil to retain water and to increased erosion of the most fertile layer of topsoil. Quality soil with sufficient humidity is very important when growing malting barley. With current climate conditions, there is a risk that farmers will prefer other crops. Sustainability Report 2022 CHAPTER VI. RAW MATERIALS The FOR BARLEY initiative is a response to the current problem of a decrease in land sowed with barley. It is a joint project of Plzeňský Prazdroj Slovensko, Ekopolis Foundation and experts from the Slovak National Forest Centre. It is focused on the support of local farmers, the protection of the surrounding environment, and on sustainable barley growing, applying the principles of agroforestry - growing crops together with woody plants. Purposefully planting woody plants on at held boundaries and dividing fields into smaller lots improves the soil's ability to retain water, prevents erosion and prevents water from washing away the fertile part of topsoil. At the same time, it supports the biodiversity of local fauna and flora, mitigates microclimatic extremes and generally cultivates the landscape. PROJECT PILOT PHASE The first agricultural association where the project is tested, is PD Radošinka in Veľké Ripňany. 150 poplars, oaks, elms, wild apple and pear trees, mulberry trees and lime trees were planted on the borders between fields. New barley varieties Another solution to climate change-related problems is using more resilient barley varieties. Together with experts from the Research Institute of Brewing and Malting, we are working on developing new barley varieties which would be more resilient to droughts and diseases. Using them would mean not only lower water consumption, but also less use of agricultural machinery and an overall reduction of the carbon footprint from production. Breeding new varieties is a long-term process, which, apart from other efforts, requires a change in the setting of processing procedures. It is however an important part of the transition to sustainable agriculture. In the past year, we organised educational events and seminars for malting barley farmers in Pilsen, Nošovice and Veľký Šariš. We are planning to actively support farmers and encourage the development of regenerative agriculture in malting barley farming in the upcoming years as well. 72/73 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Hops The hops which grow in the unique soil and climatic conditions of our landscape lend Czech and Slovak beer a special taste. In the Pilsen region, we use well-known varieties of hops - Saaz semi-early red bine, Sladek, Premiant and Saaz Late. We also use foreign hop varieties for flavoured beers and other special beers. Before the hops are processed into pellets, they are harvested and stored at low temperatures and in an atmosphere with a reduced level of oxygen. Czech and Moravian hops are added to beer by brew masters at a later stage of hop boiling, which gives beer its specific soft bitterness and a unique aroma. Year-on-year differences between volumes purchased are caused by stocking up in advance and by specific trade agreements in the given year. Three quarters of the total of 700 tonnes of hops which we purchased in the Czech Republic and in Slovakia in 2022 were from local suppliers. Sustainability Report 2022 CHAPTER VI. RAW MATERIALS FOR HOPS This year's hops season was negatively affected by extreme weather fluctuations in the summer months when long periods of drought alternated with intense rain. The harvest therefore yielded a third less than the long-term average. In comparison to the record figures in 2021, the yield was smaller by a half. Domestic hop growers will get support in their fight against climate change via the FOR HOPS project. Its goal is to create an application which will, with the help of artificial intelligence, recommend an ideal schedule for irrigation and care for hop fields. Plzeňský Prazdroj and Microsoft are the initiators of the project. Other engaged bodies are the Hop Research Institute, the Association of Hop Growers, technological start-ups from Canada, the USA, and experts from several other countries. The pilot project was launched in six Saaz region hop gardens. Before winter, experts installed soil sensors, meteorological stations and time-loop cameras in these hop gardens. In spring, more sensors were added - the so-called hop ECG - connected directly to hop plants. Thanks to sensors in various spots within the region, the data centre collects data from various soil types and various micro climatic conditions. Further data are gained from meteorological stations, satellite images, and data files from the Microsoft Planetary Computer. The data collected are analysed with the help of AI to help us understand how hops respond to external conditions. The outcome of the project will be a mobile application, which will help growers to better cope with lack of water and manage other resources more efficiently. Further measurements will be carried out throughout the next hops season. The accuracy of the analysis will show us values from individual hop gardens, so the application should be a significant contribution to our efforts to maintain the amount and quality of grown hops. 74/75 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Sustainability Report 2022 CHAPTER VI. RAW MATERIALS £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Regenerative hop field A hop field where not only hops grow, but also flowers and other plants which help boost the soil in a natural way. rochmel There is another project to help farmers adapt to climate change -Flowers for Hops - the pilot phase of which started in selected Saaz region hop fields last year. The goal is to test the implementation of the principles of regenerative agriculture in hop farming. Soil regeneration, enrichment with nutrients and irrigation should help hop farmers stabilize their yield and quality, and ensure better harvest predictability for the upcoming seasons. The project is conceived as a scientific experiment with continuous monitoring of key parameters in hop fields in Běsno, Msec, Nesuchyň and Kroučová. These locations were selected as they provide an overview of the wide scale of soil types where Saaz semi-early red-bine hops are grown. We sowed plants which can help nurture the soil and improve water retention into hop fields. This means we are abandoning agricultural procedures followed in recent decades, where soil is ploughed in autumn and all DALŠÍ INFORMACE O PROJEKTU WWWKYTKYPRCjqHMELCZ the nutrients freeze and must later be added artificially. Conditions from fields where these methods of regenerative agriculture will be applied will later be compared to control hop gardens where things will be done as they have been so far, all with the help of state-of-the-art technology. Locations and facilities for the experiment were provided by the Arix Czech Hop group, one of the biggest hop growers in Europe and a key supplier to Plzeňský Prazdroj. The main scientific partner of the project is the Czech University of Life Sciences. 76/77 We have always kept packaging material in our family. My grandmother used to do it, and we have simply continued. We jokingly say that we save boxes for boxes. I am therefore happy to be in charge of this area at the brewery and can look for solutions at work as well. I am interested in it. It is eco-friendly, financially beneficial and, for me, totally natural. I was very pleased when we stopped putting our beer into plastic PET bottles where it is impossible to sufficiently tune the production technology. I see recycling cans in the near future. We have already been able to do this in Slovakia. Collaboration with our suppliers is key to us. It works like symbiosis. Packaging suppliers come up with something new, more eco-friendly, and they need to try these new materials with a customer. So we meet them halfway. The courage to do so has been paying off. We are committed to sustainability at home as well. We are very disciplined at recycling, and we try to use packaging multiple times. My son already has his own household, and is going even further. He looks for packaging-free products and he has been really good at it. I am really pleased about that. MARTINA VAJSKEBROVÄ Raw Material Manager, with Prazdroj since 2000. £ BACK TO CONTENTS CHAPTER VII. PACKAGING 82 82 83 84 We are reducing our Beer Returnable The circularity environmental footprint tanks bottles of cans The starting point for decision-making with regard to our packaging strategy is the LCA analysis of the life cycle of selected beverage packaging materials. The method of the analysis was developed together with experts from the Faculty of Environmental Technology, UCT Prague. It enables us to assess the impact of different packaging types on the environment. LCA ANALYSIS OUTCOWj^ IQ respdhsible \C cmsunptui cmsunptui AmPROOUCTKH Our commitment: All packaging of our products will, from 2030 on, be reusable or recyclable and, at the same time, at least half of the packaging will be made up of recycled material. We will stop using single-use plastics from virgin material. Sustainability Report 2022 CHAPTER VII. PACKAGING The journey to reducing the environmental footprint of our packaging Zero use of single-use non-recyclable packaging. We completely abandoned the use of packaging which cannot be recycled into new packaging. For this reason, we stopped selling beer in plastic PET bottles. The last plastic PET bottles were used in December 2021, and we dismantled our plastic bottle-filling line at the Pilsen brewery last year. Since then, we only use kegs, tanks, glass bottles and cans for all our brands. Limiting the use of virgin material and increasing the share of recycled material Wherever possible, we replace virgin plastic with recycled plastic. We use single-use virgin plastic only for the production of packaging for which we have not yet found a suitable alternative: plastic caps on kegs, mobile tank bags and foil wrap. In previous years, we reduced its thickness by almost a third and, in comparison to commonly used foil, we save 78 tonnes of plastic yearly. We have reduced the consumption of single-use virgin plastic in our packaging by 85% since 2019. We have been successful in reducing its consumption every year. We will not be using it at all in 2030. We have also been successful in reducing the use of virgin material in the case of paper packaging. Thanks to a new method of printing on corrugated cardboard, we have been able to start using more recycled material for cardboard packaging, thereby saving 107 tonnes of virgin material. Despite the lack of recycled material on the market, we have still been able to use labels made from recycled paper for almost half of our glass bottles. We use 70% -100% recycled material for producing labels where technology enables us to do so. New plastic bags in beer tanks Beer is transported to tank facilities in mobile tanks which are cleaned in a similar way to tankers. We, therefore, do not have to use plastic bags in them anymore. However, they are still used in tanks in pubs for hygiene reasons. Our development workshop has a long-term project to develop plastic bags for tank beer that need as little plastic material as possible. During almost two years of tests, we managed to make the side of the bags thinner - from 110 microns to 90 at first, and currently to 60 microns - in other words, only 0.06 mm. Thanks to this step, we will save 12 tonnes of plastic in the Czech Republic and 5 tonnes of plastic in Slovakia annually. With regard to beer tank bags, there has also been progress in the process of recycling. In the Czech Republic alone, we use almost 50,000 of them every year, which means 45 tonnes of plastic for their production. We also use tanks with plastic bags for the export of tank beer. In cooperation with the Technical Service, Procurement and Distribution teams, we have launched a programme for the collection and recycling of used tank bags. 82/83 £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Returnable packaging It is part of our long-term strategy to increase the proportion of returnable packaging - returnable bottles, kegs and tanks - in our portfolio. In 2022, we sold 71% of our products in returnable packaging in the Czech Republic and 57% in Slovakia. Our Slovak customers have been showing an increasing interest in beer packaged in returnable bottles, which are the most suitable option for the environment - according to our data, each bottle is used up to twenty-six times. We are, therefore, pleased that more and more people find their way to them. Their use increased by 8% year on year in Slovakia alone, and Prazdroj is the Slovak leader in their sales. Returnable bottle* Average percentage of bottles returned: 98% How many times refilled: How long each bottle stays in circulation: * According to the internal calculation method THE STRUCTURE OF THE PACKAGING OF OUR PRODUCTS AND THEIR SHARE IN TOTAL DOMESTIC SALES NON-RETURNABLE BOTTLES RETURNABLE BOTTLES CANS CR 1% SR 0.5% KEGS CR 37% SR 33% TANKS CR 28% SR 42% CR 32% SR 22.5% CR 2% SR 2% CI Sustainability Report 2022 CHAPTER VII. PACKAGING Cans Our customers continue to show a lot of interest in canned beverages. For the cans to be the smallest burden on the environment possible , we have been reducing the thickness of the material used on a long-term basis, thus also reducing the amount of aluminium used. We have also been increasing the proportion of recycled material used for their production. Pilsner Urquell was the first brand in the Czech Republic to use cans with a certified 75% of recyclate. Our cans contain an average of 60% recycled material. 84/85 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS 39% By closing the cycle, the carbon footprint of our cans will decrease by 39%. In this way, we will save up to 460 tonnes of new aluminium yearly. 460 tonnes 6,700 tonnes We will reduce the carbon footprint of our cans by 6,700 tonnes of CO . One can makes another can Full recyclability is a unique quality of aluminium, and this enables a closed system of repeated use. Unfortunately, there is a lack of recycled aluminium in Europe. To launch the recycling cycle it is necessary to ensure that used cans do not end up in general waste. A clear way to prevent this is to introduce a deposit scheme. Via the Slovak Association of Brewers and Malt Producers, we are one of the founders of the deposit scheme in Slovakia. This Slovak system, in operation since 2022, is offering beverage producers the opportunity to purchase collected cans for the purpose of recycling them and using them in production. Thanks to the fact that we can purchase returned cans, Prazdroj has also become a supplier of used aluminium. We will thus be able to increase its share in cans to 75% across the whole portfolio in Slovakia, and to cover its overall consumption with the material from the deposit scheme. In this way, we will symbolically close the circle of material and know exactly what our cans are made of. Testing of the closed cycle began in 2022 with 200 tonnes of aluminium being recycled. MORE INFORMATION ABOUT THE DEPOSIT RETURN SCHEME Sustainability Report 2022 CHAPTER VII. PACKAGING £ BACK TO CONTENTS We keep reducing the carbon footprint of cans The higher share of aluminium will be reflected not only in saving 460 tonnes of new material, but also in the decrease of the carbon footprint of our cans. We find out the exact carbon footprint values in cooperation with the British Verco Global company, which measures it throughout our supply chain. They monitor the whole life cycle of a can and compare it to the situation in 2021 when the deposit system had not been introduced yet. The results show that the increase in collection and recycling from 43% to the expected 80% and the increase in the proportion of recycled material from 47% to 75% will decrease the average carbon footprint of our cans in Slovakia by 39%. Efforts to introduce a deposit return scheme in the Czech Republic Plzeňský Prazdroj is seeking to introduce a deposit system for beverage packaging in the Czech Republic, where most of it, unfortunately, ends up in incinerator plants and landfills. Together with other top producers of beverages in the Czech Republic, we founded the Initiative for Deposits. Its goal is to introduce an across-the-board system in which all producers and importers who place beverages in plastic bottles and cans on the market would take part. PET plastic bottles with a deposit could be returned by customers in all food stores with an area larger than 50m2 and on petrol stations. Customers could return deposit PET bottles and cans at a wide and convenient network of collection points in grocery stores and petrol stations, and the Czech Republic would take a crucial step towards a circular economy. 86/87 Waste We continue to decrease the volume of waste in landfills and to look for alternative ways to use waste. We recycle secondary raw materials from production, look for new solutions to reduce the carbon footprint of our products and we take waste management into consideration when selecting our suppliers and business partners. 1 mm During my university studies, one of the best things was the dormitory life. Even that could be improved a bit. I studied environmental studies in Kosice and I noticed that there was minimum awareness of recycling waste at the dorm. There was onlv one rubbish bin in the shared kitchen into which all the rubbish was thrown. Me and my friends from university thought about whether to do something about it and we decided that we would. We talked to the dormitory maintenance staff and asked them to place at least three bins in the kitchens - for plastic, paper and general waste. We tried to raise awareness - visualizations near the bins, written rules. We also added funny punishments for breaking these rules. Students accepted it and started to recycle at least at some level. Those kitchens immediately looked better as the bins were not overfilled and rubbish did not lie around. Some parts of our student campaign inspired me later after coming to work at Šariš. Our employees follow the rules of recycling perfectly. However, we have to keep working on this with our suppliers. We will achieve 0% landfilling in 2023 - we will be able to make use of everything that is made during our production processes. I think this is something we can be proud of. Water and Environmental Management System Specialist, with Prazdroj since 2017. £ BACK TO CONTENTS CHAPTER VIII. WASTE 91 93 94 96 96 So that nothing Returnable cups at How we are doing Cooperation with Brewers' ends up in a festivals in terms of waste partners crackers landfill Our commitment: By 2025 none of our waste will be landfilled. We are heading towards zero landfilling The use of waste is determined by the hierarchy of waste management processes followed by the managers of our breweries, distribution centres, and technical service. Thanks to our joint efforts, we have decreased the amount of landfill waste by 6.6% in the Czech Republic, and by 3.6% in Slovakia. This was achieved mainly by increasing the extent of recycling. The overall volume of waste did not decrease compared to last year, but the level of recycling did - by 17% in the Czech Republic and by 9% in Slovakia. 10 KSPONSIBU \C cmsiMPinH 1HPKHUCTKH CO Sustainability Report 2022 CHAPTER VIII. WASTE In our brewery in Velký Šariš, we have established cooperation with a company that operates a waste energy recovery facility.Therefore, we are planning to achieve zero landfilling as soon as in 2023. We remain committed to terminate landfilling by 2025. Part of our effort to achieve zero landfilling is the priority to reduce production of mixed packaging material and general waste. The first step towards reducing waste from beverage packaging was the termination of the use of PET plastic bottles. Another step is our support for deposits on cans. We ensure the collection of packaging material waste and its further use. In the premises of our breweries, this idea is supported by the fact that we use compressing containers for paper and plastic packaging material residues. We are glad to have found customers for paper labels removed from used bottles and that we are able to recycle thanks to suitable separation processes. GETTING OUR HOUSE IN ORDER We supported efforts to reduce the amount of general waste through an internal campaign to raise awareness in our company. There are new containers for recycled waste in our breweries. WE ALSO MONITOR WASTE MANAGEMENT BY OUR PARTNERS We also monitor how our suppliers and contractors use, recycle and dispose of waste. When choosing companies to cooperate with, we take into consideration what waste and secondary materials they use and whether they prefer further processing of material to incineration or landfilling. 92/93 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Returnable glasses and cups at festivals We use returnable cups or pour beer into returnable glasses wherever organizers allow it. If there is no way to do so, we opt for single-use recycled plastic cups, which helps us decrease the carbon footprint of our products. We continuously look for a suitable alternatives to recycled plastic cups which would offer the same characteristics and, at the same time, a demonstrably and significantly smaller carbon footprint. Sustainability Report 2022 £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS BY-PRODUCTS FROM PRODUCTION A m JI Ik L 178,362 1 1 192,448 J L tonnes J K tonnes J 2021 2022 WASTE Ji II Jl Ik L 11,594 J ft 12,085 J L tonnes M K tonnes 4 *qpF ^PF 2021 2022 WASTE PROCESSING WITHOUT BY-PRODUCTS 3% incineration (347 tonnes) 6% landfilled (713 tonnes) 3% incineration (27 tonnes) 91% recycled (10,029 tonnes) 4% landfilled (44 tonnes) 93% recycled (927 tonnes) Sustainability Report 2022 CHAPTER VIII. WASTE £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Secondary raw materials from production Most raw materials processed in the brewing industry are natural. Therefore, also most of our waste is of natural origin, so there is the opportunity of secondary use. Thanks to our long-term efforts, we are currently able to recycle 100% of all secondary raw materials originating from our production. Malting waste is a great source of feed for farm animals. Breeders appreciate especially yeast from spent brewer's grains as it has a high content of protein, fibre and calcium. Farmers can also use sludge as fertilizers and sewage filtration kieselguhr. When ploughed into the soil, the soil becomes lighter and more aerated in recultivated areas. We conclude long-term agreements with malting waste customers. We communicate with them regularly and we share our weekly brewing plans so that the collection of by-products from our breweries is the most efficient. Our customers conclude agreements directly with farmers and agricultural associations. Part of the secondary products from our production thus actually heads to our barley and hops suppliers. Brewer's crackers Brewer's grains are a by-product which remains after barley malt is boiled and the hopped wort is strained. Because most of the sugars from barley go into the beer, this malt has a low calorie content. It is, nevertheless, rich in fibre, amino acids and protein, which makes it an interesting ingredient for the food industry. Our popular malt crackers are proof that malt can be used to make a tasty and healthy snack. The Zemanka organic bakery has been baking these crackers for more than three years. There are three flavours -salted, garlic, and cheese. They can serve as ideal nibbles with beer. Last year, 301 kg of brewer's grains were processed this way. 96/97 CHAPTER NINE In 2015,1 was approached by a head hunter and asked to discuss a job offer with him. I was not looking for a job at that time, but he invited me for breakfast. And I love to eat. So we met. I started to be interested in the job only at the moment he mentioned it was Plzeňský Prazdroj. I knew that people at Prazdroj valued the great atmosphere there. After I joined the staff, I found out this was no rumour. I grew career-wise at this company, but it also met me half-way when I needed. From support during pregnancy to the chance to return to work part-time 6 months after my son was born. Even before the COVID period, I appreciated working from home one day a week as a mum and the financial contribution to day-care costs. After my second son was born, I started working right after puerperium, but in a different position. For 5 hours a week at irst and then more and more, just like I needed. My manager left my working hours completely up to me. I am now back in my initial position, but I still sense a good atmosphere and support for parents. Every day at Prazdroj reminds me how happy I am to have gone for that breakfast back then. PETRA NADR Head of Legal, with Prazdroj since 2015. £ BACK TO CONTENTS CHAPTER IX. PEOPLE 102 106 107 108 110 111 112 Diversity and Learning and Well-being Volunteering Talent Occupational Ethics Inclusion development and mental development safety and health health Employee numbers in 2022 Satisfaction survey We can only improve through to feedback from our colleagues. That is why, every year, we ask them how they feel at Prazdroj, how they perceive the values and the goals of the company, how well we are doing in the area of occupational safety and health and about many other details. In 2022, about 80% of our employees answered the survey questions, and they expressed above average satisfaction with working for our company. In comparison to the previous survey, respondents mainly appreciated the focus on safety at work and that decision-making processes were improved and accelerated. Our commitment: An equal share of women and men in management. m *n REDUCED IU inQiuimE Sustainability Report 2022 CHAPTER IX. PEOPLE Diversity and inclusion At Prazdroj, we have committed to treating all employees equally and we will ensure that our company culture is built on respect and equality, and that all our colleagues can fully achieve their potential. Diversity and inclusion are topics which are reflected in all areas of our activities. We would like the principles of diversity and inclusion to be followed not only in our breweries and offices, but also in outlets where our beverages are sold. 102 /103 £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS WOMEN IN COMPANY MANAGEMENT TOP MANAGEMENT MANAGEMENT Internal indicator. 2022 data are not comparable with 2021. The indicator now does not include employees whose roles are part of the regional structures of Asahi Europe & International. Prazdroj is a signatory and, at the same time, one of the ambassadors of Diversity Charter, both in the Czech Republic and in Slovakia. The setting and management of diversity and inclusion at our company was awarded the Gold Diversity Strategy 2021 certificate as part of the Diversity Index. Sustainability Report 2022 CHAPTER IX. PEOPLE Equal treatment and protection from discrimination As part of the international LEAD Network commitment we committed to supporting gender diversity and inclusion in European retail and packaged consumer goods in a meaningful way. The most important aspects of our commitments are embedded in our Equal Treatment and Protection from Discrimination Policy. The policy specifies what is seen as unacceptable behaviour by the company - harassment, discrimination, victimisation, bullying, mobbing, etc. The policy also clearly defines the roles and responsibilities of employees and managers in terms of prevention and solutions to situations where unacceptable behaviour occurred. This policy will come into effect lead network in 2023. Our membership in the D&I Shapers platform makes cooperation and experience sharing in diversity, equality and inclusion much easier. The platform helps to connect and coordinate the efforts of various companies in terms of gender diversity and inclusion, and also in other areas. Our Proud craft brewery has for the second time already taken part in the Pink Boots Collaboration Brew Day, the aim of which it is to support women in the brewing industry and to celebrate their successes. The limited edition Raise Your Glass APA was brewed in pink boots according to a recipe from brewmaster Lenka Strakova. Employer branding As part of our attractive employer branding we widened the offer of development programmes and mentoring programmes focused on women. We actively share and communicate the stories of our female colleagues at Prazdroj to show that great women work at our company and that they set a great examples for other colleagues. To make sure all our male and female managers are on the same wavelength, we support the development of diversity, inclusion and open-mindedness by organising seminars. ©EQUAL SALARY Equal salary opportunities An inherent part of our company strategy is an emphasis on equal treatment and the same metrics, regardless of gender. The system of development for employees and their remuneration plays an important role in this context. To make sure our remuneration processes are fair, we underwent an independent audit related to Equal Salary certification. The Swiss Equal Salary Foundation, together with the PwC audit company closely looked into our processes, carried out interviews with our employees and thoroughly analysed the data related to remuneration. The certification we obtained at the beginning of 2023 confirms that the remuneration of women and men by our company complies with the practices of the best employers and that we clearly remunerate our people based on their qualifications, abilities and their contribution to the company. Prazdroj is only the second company in the Czech Republic and one of the 150 internationally to get this certification. 104 /105 89 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS We support parents It is important for us that during maternity leave and parental leave, parents still feel they are part of the company. This is enabled through the Stay in Touch programme which informs them via a newsletter about what is happening in the company and gives them access to webinars and on-line educational sessions. There is also a special Facebook group available for parents. They keep their entitlement to employee benefits, such as the Christmas contribution, preventive health care, recreation vouchers, etc. In order for parents to be able to reconcile family responsibilities with work, we support them in various ways by enabling them to work part time and having flexible working hours. If they decide to return to work earlier than 3 years after giving birth, they get a financial contribution towards daycare in pre-school institutions. Apart from transparent remuneration, we provide our employees with numerous benefits with the aim of helping them to achieve a good work-life balance. Collective Agreement As of January 1, 2022, a new Collective Agreement co-signed by the representatives of the employer and trade unions came into effect. The Agreement governs salaries at Plzeňský Prazdroj and Plzeňský Prazdroj Slovakia for the period until December 31, 2022. The Collective Agreement defines all benefits provided to our employees who work full-time and part-time, with an indefinite period employment contract or a definite period contract longer than one year. This applies especially to the contribution to a pension scheme and life insurance, 5 weeks of annual leave, the contributions to health, sport, culture, recreation, transport and education. Special offers and reduced prices by partner companies are part of the offer of benefits, together with our company's products. Internal rules were discussed with the trade unions as well. These rules define basic aspects of remuneration and a four-member committee was appointed to decide about the strategic questions, results, current topics and remuneration. Members of this committee include the managing director, financial director, director of human resources and representatives of management responsible for remuneration and benefits. Key aspects of remuneration are discussed with the Executive Committee. The remuneration system is based on the Korn Ferry Method, which is, for higher positions, consulted at the Asahi Europe & International level. Můžeš s námi počítat (You Can Count on Us) Our employees and their families have access to psychological, financial and legal counselling via the Můžeš s námi počítat (You Can Count on Us) assistance programme. This phone line is available 24/7, consultation is in local languages and are completely anonymous. Legal assistance has proven to be most in demand. uLekafe.cz Another assistance programme uLekare.cz ensures on-line consultations with doctors for employees and also helps with arranging a check-up. Sustainability Report 2022 CHAPTER IX. PEOPLE Learning We see employee learning and development as an important investment in the future of our company. Our learning culture strives to create an environment where employees manage the development of their skills and knowledge on their own, and where managers have the role of coaches. One of the important principles of our philosophy is supporting natural sharing of experience and knowledge through workshops, expert discussions, and similar activities. Information about educational activities and their focus is regularly shared via our newsletter Na zdraví a na rozvoj! (To Health and Development!) Any development must rest on a firm base. All new colleagues go through an onboarding programme entitled Welcome to Prazdroj. We also provide on-line onboarding training sessions as part of CZ&SK Academy. This is mainly, but not exclusively, meant for our colleagues in Sales and Telesales. Another part of education provided by the company is statutory training based on legislation and our internal policies. For compliance, we have introduced a new concept of interactive training sessions with numerous practical examples. After they undergo mandatory training, any Plzeňský Prazdroj employee can further unlock their potential with the help of an individual development plan (IDP). The offer of activities was put together according to the educational areas in highest demand: Managerial skills Our Leadership development programme enjoyed a lot of interest and was taken by 164 colleagues, as did our Mentoring programme in which 37 pairs of employees participated. An important part of skills training is the PROLEAD project method of transformation management. Our goal for the future is for the largest possible number of our employees who are engaged in projects, assign projects, or lead projects to take this training. Lifestyle, psychology, well-being, and soft skills 29 webinars were organised in this area, and 534 colleagues participated. A training platform, GoodHabitz, was started in order to enable access to on-line training. 274 employees joined at least one of the sessions. Language development enjoyed a lot of interest, with our company supporting 188 employees. Technical skills We also organise very specific and expert training. These include MiBi, focused on the area of microbiology, meant for employees working in production, Academy of Logistics and SixSigma. This is meant for senior positions in production who work on their own projects with the goal of increasing the efficiency of our processes (reducing the level of dissipation of beer, etc.) The Commercial Excellence Department prepared 44 educational courses, including some for our customers. We try to approach training efficiently as well. We fused three mandatory courses into one, saving 816 working days for the company. 106 /107 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Well-being Well-being - a state of psychological, physical and social contentment -is currently a big topic on which we also put great emphasis. The well-being of our employees is essential to us. Therefore, we became members of the Coalition of Companies of the League for Mental Health in Slovakia. Our employees can thus have on-line consultations with experts in mental health every month. We offer our people numerous webinars focused on healthy lifestyle, nutrition, exercise, but also an often neglected part of working life - ergonomics. We have been participating in the Cycle to Work! Challenge and the 10,000 steps challenge for five years. We have revived the tradition of Family Days at our Breweries where hundreds of colleagues and their family members meet. To help find the balance between family and work life, we have amended our formal policy enabling home office work. All employees whose job enables it can make use of it. We do sports together We organise numerous sporting events and tournaments, and we actively partake in others. Our football representatives traditionally take part in our Sports Day at Veľký Šariš. For running enthusiasts, there is the Birell Grand Prix. There are competitions in darts, badminton, volleyball, but also in firefighting. Prazdroj is one of the main organisers of firefighting competitions in Pilsen. In 2022, the competition took place right in the Pilsen brewery courtyard. 28 teams of seven took part, including representatives of Prazdroj. Sustainability Report 2022 CHAPTER IX. PEOPLE Volunteering We enable all our employees who have an employment contract to spend two working days volunteering every year. In 2022, 422 colleagues used this opportunity, and they devoted 2,690 hours to voluntary help. Be it cleaning the landscape in the surroundings of our breweries, planting trees, landscape revitalisation, organising material collections for the needy, or senior care, our colleagues are willing to devote their time and actively engage in volunteering activities. Many of our colleagues were engaged in activities directed to help people affected by the war in Ukraine. More in the Communities chapter. 108 /109 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Sustainability Report 2022 CHAPTER IX. PEOPLE The development and support of young talents GoGraduates Internships The GoGraduates project is a programme focused on the development of "Future Leaders". Participants go through a two-year internship in positions which match their interests and career development. One rotation is abroad in a partner Asahi group brewery Many graduates are already making use of experience they gained through this programme in key management positions. In 2022 alone, we filled 6 Trainee positions in Sales, Marketing, HR, Manufacturing, and Supply Chain with people from the GoGraduates programme. Our company offers several types of internship positions every year. All-year internships mean a 20-hour work week throughout the year. Summer ones are in the form of full-time employment during the summer months. Internships are related to projects which focus on actual benefits for Prazdroj operation. Graduates present the results of their activities directly to the company's management and they often become part of the operation of the company. In 2022, there were nine participants of the all-year internship, and six worked with us through the summer programme. Cooperation with educational institutions We actively engage with high schools and universities. We organize lectures, workshops, open days, and take part in long-term practical students' assignments and provide consultations for Bachelor and Diploma theses. Some of our long-term partner universities are VŠE, VŠCHT, VŠB, STU, SPU, EUBA, and others. We also take part in job trade fairs and conferences, such as YouthSpeak Forum and Big Step. Dual education at the Šariš brewery Our brewery cooperates with the Secondary Vocational School of Business and Services in Prešov, providing the practical part of the only study course for malting and brewing in Slovakia. In 2022, four students studied the three-year course Brewer and Maltster, and 29 instructors from the brewery shared their experience with processes such as malt production, hopped wort production, managing the fermentation process, filtration and product packaging. Apart from an apprenticeship certificate, students can take the school-leaving examination and, if interested, they can start working for the Šariš brewery. Currently, three out of the eight graduates from the programme are working here. 110 / 111 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Safety is our number one priority The management of occupational safety and health and of fire protection is internally referred to as SMS (Safety Management System) at Plzeňský Prazdroj. It is managed by the Technical Director's team which coordinates managers of individual plants. SMS also includes distribution centres, technical service and, as part of Pilsen brewery, the Proud experimental brewery. 30 audits focused on safety were carried out in 2022. 22 in the Czech Republic and 8 in Slovakia. A series of new measures were taken to reduce the risk of occupational injuries. These included motivational programmes, monitoring workers who do their job alone, introducing the idea of safety teams and some technical measures. For us, the protection of personal data is also an important part of employee safety. All systems which process these data are secured in a way which ensures maximum protection of personal data. In 2022, risk analysis was done by 42 Safety teams in total. The most important project was an across-the-board introduction of JRA (Job Risk Analysis) by teams in individual departments. It is their goal to identify specific risks of the given workplace, engage employees in looking for solutions and to perform follow-up updates on the state of the risk. The system of occupational safety ambassadors continued as well. These underwent a series of trainings. It is important for us that pedestrians also move safely around the premises of our breweries. We have issued procedures focusing on the safe movement of pedestrians and we consider this a great success. 2021 2022 There were 10 occupational injuries resulting in incapacity to work in 2022. 9 in the Czech Republic and only 1 in Slovakia. In comparison to the injuries in 2021, both their number and their seriousness were reduced. Safety training All our employees and suppliers undergo occupational safety and health training. The content is determined by legislation and is also focused on other specific risks identified at the given workplace. Employees in distribution centres and technical service are familiarized with topics related to the environment, occupational safety and health and fire protection, in cooperation with external consultants with expertise in the respective areas. Great emphasis is put on the work of external companies, especially in operation, where a system of work permits is set up and implemented for them. Emergency situations training Despite difficult conditions due to COVID-19, we managed to organise a number of practical instructional sessions. At the Gambrinus brewery, for example, a joint fire drill by a voluntary fire brigade and a professional fire brigade took place, simulating an ammonia leakage situation. The procedures of responsible employees during an emergency ammonia leakage were also tested during a training session at our Nosovice brewery. This was training for a complete plant evacuation, in cooperation with the rescue services. Evacuation procedures were trained also at Pilsen and Popovice. 0 146 employees participated in Safety Camps -special programmes organised for employees to gain knowledge and develop skills in the area of safety. Sustainability Report 2022 CHAPTER IX. PEOPLE £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Ethics Integrity and ethical behaviour both within the company and in relation to suppliers and customers is essential for supporting the good reputation of Plzeňský Prazdroj and the whole Asahi group. Principles of such behaviour are defined in our ethics policy, which was updated in 2022 and which is binding for all employees of the company, including seasonal ones. These ethical principles are introduced to them during the onboarding process, and knowledge of the principles is supported by the annual training "Company Ethics". Employees and third parties can report non-ethical behaviour anonymously on a special phone line or by filling in an on-line form . This hotline is provided by an external supplier and any reporting is investigated by an independent team. Employees can also report non-ethical behaviour to their line manager, to a member of the Ethics Committee, to the Compliance team or to the respective Ethics Commissioner. The whole process is described in the Whistleblowing Policy. The fact that there were only a few reports to investigate last year proves that our measures are effective. Vášeň je nejlepší kvalifikace fibudprazdroj Prazdroj Stars We would like our employees to be determined, full of initiative, to have a sense of responsibility, and to support and encourage one another. To encourage such behaviour, we introduced, in 2022, the chance to nominate any colleague or team for the Prazdroj Stars award. This is awarded to employees who have significantly contributed to the company's results or to the improvement of our company's environment. Nominees are assessed every month by a committee of senior managers, and the winners get the Prazdroj Stars award personally from the managing director. Awarded individuals and teams can proceed to another round. There, the members of the committee choose projects which can represent Prazdroj in the global Asahi Group Philosophy Awards competition. In 2022, Prazdroj nominated the FOR HOPS project. 112 /113 CHAPTER TEN m \ III, Responsibility We understand the need to find a balance between a healthy lifestyle and joyfully spent free time with friends. Therefore, we encourage the principles of responsible alcohol consumption, and we want our beverages to become the natural choice of consumers who drink with moderation. e sometimes went to the pub when I was at university. Usually somewhere with cheap drinks, pool, and good company. Yet when you ordered a nonalcoholic drink in such places, the bar tender looked at you and said "You're not at a cafe, have another me," and put an alcoholic beer in front of you. I still remember this very well. People do not go to pubs, parties or barbecue get-togethers because of alcoho1 but rather for the company. No one should feel they do not belong just because they do not feel like drinking alcohol. So, I am happy with my job, because although we work in a "beer environment", we have done a lot to support the idea that it is completely normal to order non-alcoholic beer in a pub. This is now starting to feel normal, at least in larger towns. I myself love Birell. It is made from natura ingredients and tastes great. Both the flavoured a unflavoured. When I go to the pub with my frienas these days, I sometimes drink non-alcoholic bee] between regular beers. One wants to enjoy the whoie evening. Sometimes I drink only Birell if I feel like it. No one pities me for being on antibiotics or being the designated driver. Everyone sometimes feels like that. I am happy about this progress. ROMAN TRZASKALIK Marketing Director, with Prazdroj since 2018. £ BACK TO CONTENTS CHAPTER X. RESPONSIBILITY 118 120 121 122 124 Commercial Preventing minors Na pivo s Non-alcoholic Our international communication drinking alcohol rozumem (Drink beers commitments responsibly) and other prevention programmes It is natural for us to comply with Czech, Slovak and international rules and ethical codes of conduct. Apart from them, we also apply our own internal rules which go beyond them and are among the strictest in the alcoholic beverage industry. Abeceda Alkoholu (The Alphabet of Alcohol), our principles of responsible alcohol consumption, are part of our employees' regular training and the training for cooperating agencies, business partners and shareholders. Employees of marketing departments also go through special training focused on responsible marketing. We continuously expand our portfolio with non-alcoholic brands because we want to offer our consumers new beverages and flavours within the non-alcoholic drinks category. Our commitment: We will increase the proportion of nonalcoholic beverages in our offer to 25% by 2030. 3GOOD HEALTH AND WELL-BEING Sustainability Report 2022 CHAPTER X. RESPONSIBILITY Commercial communication We approach marketing responsibly and we regularly assess the results of self-regulation. Properly configured self-regulation enables Plzeňský Prazdroj to quickly react to changing trends while its control it does not require any investment from public budgets. 100% of commercial communication must be approved by our internal Sales and Marketing Compliance Committee. In 2022, its members evaluated more than 560 proposals for the Czech and Slovak markets. 100% of channels for our alcoholic brands include a mechanism that verifies the age of the user and lets only those over 18 continue to the content. 99.9% of our TV advertising complied with the 75:25 rule (at least 75% of the target group of the programme or regular broadcast where our advertisement was placed, were persons above 18 years of age). This rule was followed in all our material in print, on the radio and within digital communication. 118 /119 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS DIGITAL GUIDING '£ PRINCIPLES, Digital communication in Plzeňský Prazdroj is governed by a set of rules - Digital Guiding Principles. In addition to other rules, they include essential principles regarding the content of websites and social networks posts. In 2022, we did not receive any complaints about our advertising in either the Czech Republic or Slovakia. Sustainability Report 2022 CHAPTER X. RESPONSIBILITY Preventing alcohol consumption by minors The public in the Czech Republic and Slovakia take an overly tolerant approach to alcohol consumption by minors. It is our goal to change this through raising awareness. Therefore, we take part in several projects which draw attention to these problems and seek is to do something about it. Respect 18 is a contact campaign which we lead in cooperation with experts from the Drug Prevention and Therapy Centre and the Podané Ruce organisation, municipalities and city authorities. It focuses on the topic of the prevention of alcohol consumption by minors. Together with the partners, we visit various events across the Czech Republic. The entertaining and, at the same time, educational activities at our stall caught the interest of more than 11,000 adults. Our follow-up project devoted to the problem of alcohol consumption by minors is called Let's Talk About It. Through these projects, problems connected with this topic are communicated on social networks and elsewhere on the Internet. On the respektujl8.cz website and on social networks, experience and stories of real people and expert advice is shared to show how problematic situations can be successfully solved. The overall number of people who engaged in the project, be it its contact part or the online part, was more than 97,000. RESPEKTUJ18.cz RESPECTUJJ8.CZ In Slovakia, we cooperate on the Respektuj 18 project with experts from the OZ Prima organisation. Together we took part in six events for families with children and we managed to address over 4,000 adults through the contact campaign in 2022. We continue raising awareness on social networks with psychologist and guarantor of the project Barbora Kuchařová. Via short videos we open up the topic of how to talk about alcohol with adolescents. Over 8,500 people engaged in the project, through the contact campaign and online. I RESPEKTUJ18.SK RESPECTUJJ8.SK We support the project Nezlob Se. Prokaz Se (Don't Get Angry - Prove Your Age) prepared by the Czech Beer and Malt Association. Its aim is to minimise the number of cases where alcohol is sold to a minor by thorough checks. New training videos using virtual reality were made in 2022. At the Samoska and Retail Summit congresses, they were introduced to representatives of chain stores and other retailers. Synové mé kamarádky pijí. Jak jí to mám říct? £pgjdmeatom ml uvít Přidejte svůj příběh ■rpojdmeotommluvit ■ ■ p oj d m co tom mlu vi t 120/121 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Na pivo S rozumem (Drink responsibly) and other prevention programmes Our Czech napivosrozumem.cz portal and Slovak promileinfo.sk also help to promote responsible alcohol consumption. Here, in compliance with the commitment "Proud to be clear", we increase consumers' awareness of the nutrition values which are also stated on the product labels. On these portals, the Czech section Beer and nutrition states these values for more than 50 products, and for 30 products on the Slovak version of the website. NA PIVO 5 ROZUMÍM We supported the free breath test and consultation service during the summer months. This service was offered by experts from the Sanamin organisation at 11 festivals in the Czech Republic. The Promile INFO stall was visited by 5,000 guests. %o Prom Info Jsem tadx S bwjvalkou ale nemudis se bat Ne všechno slojí za sdílení 3:15 i TEHOTNE ZENY BY NEMĚLY PIT ALKOHOL www.napivosrozumem.cz Together with other members of the Czech Beer and Malt Association, we actively support preventive events focused on the prevention of drinking and driving. Through the Řídím, Piju Nealko Pivo (I drive, I drink non-alcoholic beer) project, 41,550 people were reached in cooperation with the Police of CR and BESIP in 2022. We support responsible behaviour, not only behind the steering wheel, in Slovakia as well. During a period of intensive checks, the annual initiative called Zodpovednost (Responsibility), the Slovak Police checked more than 2,900 drivers, and the responsible ones were given a non-alcoholic beer as a reward. The responsibility-focused campaign was run on social networks throughout the year. It reached 523,000 users of Facebook and there were almost 2,000 direct interactions on Instagram. Sustainability Report 2022 CHAPTER X. RESPONSIBILITY Non-alcoholic beers Non-alcoholic beers are no longer just beers for drivers. They enjoy popularity with people with an active lifestyle, cyclists, skiers and they more and more frequently appear in pubs as an alternative for people spending time with friends. Non-alcoholic beverages are currently the fastest growing part of the beer market. The demand for both the basic, non-flavoured Birell, the non-alcoholic radlers (shandies), and the flavoured Birells is on an increase. We pay a lot of attention to our non-alcoholic goods and we keep improving and innovating our offer. So that Birell světlý (pale) better meets the taste requirements of our consumers, we finally developed a different recipe after 30 years. This year, four limited edition flavours have been added to the offer: Citron & Máta (Lemon & Peppermint), Višeň & Ostružina (Cherry & Blackberry), Bezový květ (Elderflower) and Malina (Raspberry). They have a lowered sugar content and do not contain any preservatives or artificial colouring, which is also the case with other Birell products. We put strong emphasis not only on sales in stores, but also on the draught variants, which were dominated by Birell Pomelo & Grep (Pomelo & Grapefruit) during the summer months. THE PROPORTION OF NON-ALCOHOLIC BEVERAGES IN THE PRAZDROJ PORTFOLIO CZECH REPUBLIC 11.5% SLOVAKIA 14% 122/123 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS BIRELL Every eighth beer from Plzeňský Prazdroj and every seventh beer from Plzeňský Prazdroj Slovensko is non-alcoholic. Sustainability Report 2022 CHAPTER X. RESPONSIBILITY BACK TO CONTENTS BACK TO CHAPTER CONTENTS Our international commitments We continue delivering against our international commitments arising from our membership in the Asahi group. These are related to communicating about our products in a responsible way, preventing the consumption of alcohol by minors, and promoting the nutritional values of our products. PROUD TO BE CLEAR STATING NUTRITIONAL VALUES ON PACKAGING AS PART OF THE PROUD TO BE CLEAR INITIATIVE We report the energy value of our alcoholic and non-alcoholic products on all primary consumer packaging sold in the European Union. In addition, we indicate the entire nutritional profile (the Big 7) on secondary and tertiary packaging. All alcoholic products in our portfolio also show at least one of the three voluntary labels promoting responsible behaviour on their packaging. PROUD TO BE CLEAR IARD PREVENTING ALCOHOL CONSUMPTION BY MINORS THROUGH THE INTERNATIONAL ALLIANCE FOR RESPONSIBLE DRINKING (IARD) In the upcoming period, we will focus on complying with the remaining parts of the International Alliance for Responsible Drinking (IARD) commitment. These include the introduction of all symbols, especially those aimed at risk groups - drivers, minors, and pregnant women who should refrain from the consumption of alcohol. Currently, we show all three icons on almost 80% of our alcoholic beverage packaging. By 2024, they will be on all our alcoholic beverage packaging. We will not aim at the young or children when preparing any marketing communication, even for our non-alcoholic variants of beverages derived from alcoholic brands. We will strengthen current measures preventing the young from obtaining our content in the digital environment. We would like to deepen our cooperation with retailers, wholesalers, distributors, e-shops and I INTERNATIONAL ■i ALLIANCE FOR RESPONSIBLE ■ DRINKING 0AR\ delivery services and encourage them to join us in developing global standards for selling alcohol online and to work with us to implement the most effective strategies for verifying consumers' age. napivosrozumem.cz 124/125 ommunities We create meaningful connections. We engage in the regions where our breweries operate. We help develop an infrastructure, protect the environment and preserve community traditions. We also support tourism and cooperate during extraordinary events. We develop beer culture. We cooperate with operators of restaurants and public houses on further improving their environment and draft beer quality. In this way, we contribute to the development of their business. ■ RUDOLF SLEHOFER Craft & Heritage Director, with Prazdroj since 2003. £ BACK TO CONTENTS CHAPTER XI. COMMUNITIES 129 131 134 138 140 Cooperation Breweries We help and We develop Fresh in the regions and history support beer culture Outlet Cooperation with towns and regions Prazdroj is an inherent part of the Pilsen region. With the City of Pilsen itself, we co-signed a declaration about cooperation which defines key areas of joint activities by the brewery and the city. We actively participate in organising events such as the Liberation Festival, Sportsmania, Pilsen Day in the Senate and the traditional Pilsner Fest. At the Pilsen - Green City festival, we introduced our sustainability-related projects. We even obtained the Patron of Pilsen Culture award for the Prazdroj to People programme. Many projects were carried out in the Velke Popovice region as well. We participated in the completion of the drinking water feeder and we opened a 'malt path connecting the Daleska Park with Brtnice, along which we planted 8 traditional Czech lime trees. We cultivated the car park near the brewery and we supported more projects with financial contributions totaling CZK 400,000. The inhabitants of Nošovice warmly welcomed the renewal of events organised by our Radegast brewery. These were, for example, the Radegast Feast in April and the Radegast Day celebrating the 50th anniversary of the brewery in August, where the results of the grant programme supporting the region were announced. After the forced break during the pandemic, activities were revived at Veľký Šariš in Slovakia as well. Here the brewery takes part in organising cultural events at Šariš Castle and sporting events in the town. An international sculpture symposium enjoyed a lot of interest as well. The Declaration of Cooperation was signed in Velké Popovice. Sustainability Report 2022 CHAPTER XI. COMMUNITIES Breweries and their visitors Our breweries are a significant part of our national cultural heritage and they are popular attractions for tourists and fans of industrial architecture. Their maintenance and preservation, therefore, is one of our investment priorities. The Brewery Park in Velké Popovice has been revitalised. Some green areas have been renewed in Pilsen. In addition, the Pilsen Na Spilce Pub has been reopened after a thorough reconstruction. The first restaurant run directly by Prazdroj offers tank beer and a menu based on high quality ingredients from local suppliers. 217,000 After the mandatory interruption caused by the pandemic, the Plzeňský Prazdroj, Gambrinus, Radegast, Velké Popovice and Proud breweries reopened to the public. After that, 217,000 visitors walked through their gates - almost three times as many as during the previous year. TOURS OF THE BREWERIES 130 /131 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Barrels and coopers Those one hundred and something lagering barrels do not serve only as a memory of brewing history We want to make sure that our beer tastes just the same as it did 180 years ago, so we compare the batches brewed using modern technology with those maturing in these oak barrels. Their good condition is ensured by a team of coopers whose craft was added in 2018 to the List of Intangible Elements of Traditional Folk Culture. They are now applying to be listed as UNESCO intangible heritage. 180 years since the first batch October 2022 saw the 180th anniversary of the brewing of the first batch of Pilsner Urquell. The Brewery Museum commemorated this anniversary with the 180 years of Prazdroj exhibition organised together with the Plzeňský Prazdroj Archive. The most precious and the most interesting exhibits related to the history of the brewery were on display - original crystal cups, Pilsner Urquell auction bottles and gifts which were sent to the Pope in 2011 when the tradition of Easter Beer brewing was renewed. Sustainability Report 2022 CHAPTER XI. COMMUNITIES We are not indifferent to what is happening to our neighbours In cooperation with Nadace Partnerství foundation, we continued the Breweries to People grant programme. The programme supported projects to develop regions, cultivate the landscape and its biotopes, promote sensitive water and natural resources management, and develop community life. KOZEL LIDEM (KOZEL TO PEOPLE) CZK 200,000 / 5 projects The aim of the Kozel Lidem (Kozel to People) programme is to develop neighbourly life, local togetherness and to contribute to the protection of nature in the Velké Popovice and Kamenice regions. PRAZDROJ LIDEM (PRAZDROJ TO PEOPLE) CZK 700,000 / 7 projects The Prazdroj Lidem (Prazdroj to People) grant programme supports projects and activities which improve the quality of life in Pilsen. In recent years, it has also been increasingly supporting environmental protection projects. RADEGAST LIDEM (RADEGAST TO PEOPLE) CZK 700,000 / 5 projects Sensitive water management, care for landscape and natural resources, and increasing the responsibility for the environment. These are the key topics financially supported by the Radegast Lidem (Radegast to People) programme. ŠARIŠ LIDEM (ŠARIŠ TO PEOPLE) EUR 16,000/6 projects Through Šariš Lidem (Šariš to People), support was provided to projects which contribute to the renewal and revival of ecologically valuable areas in the region, and to the development of cultural heritage. Together with Community Foundation Velký Šariš, we also support other socially beneficial projects in the Prešov region. 132/133 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS In the Czech Republic, we provided free beverages with a total value of CZK 1.5 million. In Slovakia, the value of the beverages provided exceeded EUR 13 thousand. We respond to critical situations We immediately reacted to the outbreak of war in Ukraine. We organized a financial collection as early as February 25, and Plzeňský Prazdroj committed to double any contribution made by an employee. More than 600 colleagues from the Czech Republic and Slovakia contributed. CZK 3 million went to the Člověk v tísni (People in Need) account in the Czech Republic and more than EUR 20,000 were sent to Človek v ohrození (People in Need) in Slovakia. Our Asahi parent company added the same amount. Plzeňský Prazdroj call centres and ČEZ call centres organised a collection for a children's home near Lvov in Ukraine. There were so many contributions it was possible to support some other children's homes as well. Other collections were organised in Velké Popovice, Veľký Šariš, Bratislava, but also right within the Pilsen brewery premises where we opened a collection point for non-financial contributions to help refugees in cooperation with Diecézni Charita. Almost 20 tonnes of material help were gathered here in two months. Both our colleagues and our beverages help. Our volunteers also helped people fleeing the war. They cooked for those in need, ensured the distribution of food at the Pilsen registration centre and they also helped to assemble furniture in company flats which Prazdroj provided for Ukrainians. As early as in the spring, we accommodated 14 people from Ukraine, and more people were provided shelter in our accommodation facilities in Velké Popovice and Nošovice. Our beverages were sent as part of our help. Via the ADRA and Food Bank organisations, our non-alcoholic Birells were delivered to emergency centres in the Czech Republic, Slovakia, and also in Ukraine. By the end of the year we had sent 2,570 cartons of non-alcoholic beverages to institutions across the whole of the Czech Republic engaged in helping refugees. 0 Help for fire fighters Birell helped Czech firefighters to stay hydrated. We sent a hundred cartons of non-alcoholic beer to the firefighting units tackling the fire in the very challenging terrain of the Czech Switzerland National Park in July. Sustainability Report 2022 CHAPTER XI. COMMUNITIES We help and support 134 /135 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS Radegast takes care of the Beskydy Mountains and water in the landscape. The Radegast brand has long been pointing out the importance of retaining water in the landscape. Together with the ČSOP Salamandr non-profit organisation, volunteers have cleaned three marshland areas, planted 1,500 fir trees and 950 young herb plants. The Radegast brand team provided 524 tree irrigation bags as part of a campaign to raise awareness of the importance of efficient water management and retaining water in the landscape. The bags were placed in various parts of the Czech Republic, specifically those suffering from drought and those which showed interest - Nošovice, Nový Jičín, Rakovník, and Nový Bydžov. The brand team also prepared a special zone at festivals where visitors will be familiarized with the aspects of retaining water in the landscape. Sustainability Report 2022 CHAPTER XI. COMMUNITIES MsnťrtJrqiitlI 180 AUKČNÍCH HODINEK 2022 5 782 260 Kč DAROVACÍ CERTfHKÁl Pilsner Prim watches for Centrum Paraple The Pilsner Urquell brand has been cooperating with the non-profit Centrum Paraple for 11 years. This year's auction of 180 Prim Manufacture limited edition watches inspired by the history of the brewery helped us raise CZK5,782,260. URQUELL Gambrinus plays for football The Gambrinus brand has long been supporting amateur football. It financially supports football clubs which are engaged in the Kopeme za Fotbal project (Playing for Football) by helping with some equipment, promotion, tournament and competition prizes, and providing reduced beer prices. CZK1 million has been released for clubs and the communities of their municipalities via this programme. #COPATUTOJE Pilsner Urquell has cooperated with the Pilsen-based Horsefeathers clothes company, on the design of special collection T-shirts, basketball caps and winter hats. Part of the profit made from this collection, specifically CZK 178,920, was used as a gift for the Pilsen University Hospital to support the improvement of some of its equipment. Proud in Movember The Proud brewery officially took part in the global Movember campaign. A non-alcoholic edition of beer - Proovan - Proud in Movember was brewed as a result of Proud's cooperation with the Muži Proti Rakovině (Men Against Cancer) foundation. The fund gained CZK 5 from every beer with the moustache label. The overall amount, including gifts from volunteers, was CZK 78,911. 136 /137 BACK TO CONTENTS BACK TO CHAPTER CONTENTS Communities with Kozel Velkopopovický Kozel, in cooperation with local governments, supported a project to create public barbecue areas in woods in the surroundings of Brandýs nad Labem, České Budějovice, and Újezd nad Lesy. These are built on spots where the movement of tourists does not disturb the sustainability of the wood biotope and where it does not affect fire safety. They were made from recycled materials and their robust structure ensures that the grills will stay in good condition for decades. HASIME 5 J^&zlem Our support for fire prevention and voluntary fire brigades has been a tradition for a long time. The Hasíme s Kozlem loyalty programme contributed an overall amount of CZK 180 thousand this year. 2% in Slovakia Slovak companies have the opportunity to support non-profit entities with 2% of their income tax. The largest part of the support provided in Slovakia was our traditional contribution to the Community Foundation in Velký Šariš, to the Prima Association which we cooperate with on the Respektuj 18! Project, and to organisations which focus on FAS (Fetal Alcohol Syndrome) prevention, diagnosis, and therapy. The Hradba Šariš citizens' association and the Ekopolis Foundation fund which focuses on adaptation measures in the agricultural landscape were also supported. An active life with Birell In our opinion, non-alcoholic beers are not a substitute, but a proper beverage in tune with an active lifestyle. Birell has therefore become a partner of sports events in Slovakia, such as BeCool runs, Behaj lesmi (Run in the Forest) and the Birell Bikefest. In the Czech Republic, the supports the Birell Grand Prix, the Run Czech series of running events, and Cesta za snem (The Journey towards a Dream) supporting handicapped sportspeople. Sustainability Report 2022 CHAPTER XI. COMMUNITIES Beer culture from the signboard to the tap Plzeňský Prazdroj is number one on the Czech and Slovak markets in terms of sales in pubs and restaurants. We, therefore, feel responsibility for the development and tradition of the Czech beer culture. In recent years we have been trying to help our customers to develop in the areas necessary for good operation of their outlet - namely in personnel, economy, marketing, and sustainability matters. First at the Source It is not only village pubs that are facing hard times. According to a Plzeňský Prazdroj survey, every third outlet is not confident about its further existence. There is a programme intended to help pubs regain guests - První u Zdroje (First at the Source). This is a set of educational video courses which provides advice on all activities related to such outlets - from tapping, to financial management, to marketing and staff training. Zdeněk Pohlreich is the ambassador of this programme, and 3,000 outlets have signed on. Educating and training staff in gastronomy is of great importance for outlets, but also for the whole sector. We help Czech traditional village pubs The times are not merciful for village establishments. According to our data, 12% of pubs in municipalities with less than 5,000 inhabitants have closed in the last three years. Plzeňský Prazdroj started the Village (Vesnice) programme to save this institution of the Czech countryside in 2017. Almost 900 outlets took part, and the overall support amounted to almost CZK 18 million - CZK 5.6 million was distributed in 2022 alone. Establishments can use this support to improve their interior and equipment or to finance activities which will help them attract guests. Both of these alternatives have paid off, as beer-driven revenue in the supported pubs increased by 8%. 138 /139 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS 4 ft Those competing for the Pilsner Urquell Master Bartender title were supposed to not only show off their skill at perfectly pouring the golden lager, but also to prove their profound knowledge of beer, its production and history, and to prove their communication skills - a must for any good bartender. The Brewers' Star Plzeňský Prazdroj awards pubs that take great care over their beer with the Brewers' Star. Inspectors regularly assess the journey of beer from storage spaces, to how clean the beer piping and glasses are, to correct tapping. We are, therefore, very glad that in 2022, 586 Czech and 117 Slovak outlets obtained the Star. This is twice as many compared to the first edition of the programme three years ago. This award for bartenders also serves as a good navigation reference point if you want to find the best pubs. For a pub, this can mean a significant advantage over its competition. In a survey carried out last year, holders of the Brewers' Star confirmed that it has a positive impact on sales volumes. Sustainability Report 2022 CHAPTER XI. COMMUNITIES £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS The HeartCore Pub concept is primarily meant for keg beer pubs. The interior is less demanding, can be constructed quickly and we we can even include the original equipment already in the pub. With style, elegance and without unnecessary promotional material. Fresh Outlet A pub's appearance can largely influence its success. Our Fresh Outlet project has been trying to make pubs more beautiful and get rid of "visual smog" for the past three years. More than 2,500 establishments engaged, and in many towns in this country it goes hand in hand with the effort to reduce advertising and visual smog in public areas. Such makeovers have has had a positive impact on both appearance, but also on the eco-friendliness of operation. The elimination of illuminated signs and the change to lighting technology have been reflected in a yearly saving of 252,000 kWh, or approximately the energy consumed by about 100 Czech households. 140 /141 CHAPTER TWELVE GRI Standards In the report, we refer to selected indicators of the international GRI (Global Reporting Initiative). To enable a comparison of our results and monitoring of their development over time, the Appendix contains data from previous periods organised in the same way. I love mountains. I love the nature. There, I feel freedom and I relax. I am a hobby runner and I cross-country ski. I also have one very distinct memory. One winter I went crosscountry skiing to my two favourite places - to the Šumava Mountains and to the Krkonoše Mountains. Neither of these locations had enough snow for long hikes. Back then I realized I would like snow to be common in Czech mountains, not just a rarity. It is really nice to go on a long hike on cross-country skis and have a beer as a reward. Back when I was a student, I went with the Brontosaurus movement to the Jeseníky Mountains to plant trees. In my opinion, such work to help nature makes more and more sense. That is why I am really happy about Prazdroj's approach. £ BACK TO CONTENTS CHAPTER XII. GRI STANDARDS GRI INDEX (CONTENTS) DECLARATION OF THE USE OF STANDARDS Plzeňský Prazdroj reports information stated in this GRI Index for the period from January 1, 2022 to December 31, 2022 using GRI standards. GRI STANDARD VERSION: GRI 1: Foundation 2021 GRI SECTOR STANDARDS None GRI STANDARDS INDICATORS INFORMATION LOCATION COMMENTS GENERAL DISCLOSURE (GRI 2) THE ORGANIZATION AND ITS REPORTING PRACTICES GRI 2- 1 Organization details About the company, About the report, Annual reports CZ and SK GRI 2- 2 Subjects involved in the sustainability report About the company, About the report GRI 2- 3 Reported period, the reporting cycle ana contact details About the report January 1 - December 31, 2022 GRI 2- 4 Editing information already made public About the report GRI 2- 5 External verification About the report ACTIVITIES AND EMPLOYEES GRI 2-6 Activities, value chain and other business relationships Introduction, About the company, Raw materials, Communities GRI 2-7 Employees People, GRI data- People 2-7 b iii - workers without fixed working hours are reported as other GRI 2-8 workers. GRI 2-8 Other workers GRI data - People GOVERNANCE GRI 2-9 Organization's management structure About the company, Annual reports CZ and SK GRI 2-12 The role of the executive body within impact management Strategy GRI 2 13 Delegated responsibility for impact management About the company, Strategy GRI 2-14 The role of the executive body within sustainability reporting About the report GRI 2-17 Collective knowledge of the supreme managing body Strategy Newly added. GRI 2-18 a Performance assessment of the supreme managing body Strategy Newly added. GRI STANDARDS INDICATORS INFORMATION LOCATION COMMENTS Sustainability Report 2022 KAPITOLA XII. GRI STANDARDY STRATEGIES, POLICIES AND PROCEDURES GRI 2-22 Declaration of the sustainability strategy Introduction, About the company, Strategy GRI 2-23 Commitment to policies About the company, Strategy, People, Responsibility https://www.prazdroj.cz/nas-pribeh/ dulezite-listiny GRI 2-24 Implementing the commitment to policies About the company, Strategy, People, Responsibility GRI 2-25 Processes correcting negative impacts About the company, Accountability GRI 2-26 Mechanisms for consulting and communicating initiatives People - Ethics, Responsibility-Commercial communication https://www.prazdroj.cz/nas-pribeh/ dulezite-listiny GRI 2-27 Compliance with legislation About the company There was no breach of legislation during the reported period. GRI 2-28 Membership in associations About the company - Stakeholders STAKEHOLDERS ENGAGEMENT GRI 2-29 Approach towards the engagement of stakeholders About the company - Stakeholders; Communities GRI 2-30 Collective bargaining People The collective agreement relates to all employees of Plzeňský Prazdroj, a.s. and Plzeňský Prazdroj Slovensko, a.s. MATERIAL TOPICS (GRI 3) GRI 3-1 The process of determining important topics: Strategy, About the company The next analysis of important topics will be carried out in line with ESRS double materiality standards. GRI 3-2 List of important topics Strategy - Pillars of the strategy GRI 3-3 Management of important topics Strategy.Text of the chapters The approach to managing important topics is described in the respective chapters of this report. ECONOMIC MATERIAL TOPIC: ECONOMIC PERFORMANCE (20T6) (GRI 20T) GRI 201-1 Direct economic value created and distributed About the company; Annual reports CZ and SK GRI 201-3 Mandatory retirement fund payment and other contributions to the pension scheme Annual reports CZ and SK Key financial indicators are in the annual reports (newly added). GRI 201-4 Financial support from the government Annual reports CZ and SK MATERIAL TOPIC: PRESENCE ON THE MARKET (20T6) (GRI 202) GRI 202-2 Proportion of management staff coming from local communities In the Czech and Slovak Republic, the proportion in the company management is 50°/o and in senior management 95°/o. MATERIAL TOPIC: INDIRECT ECONOMIC IMPACT (20T6) (GRI 203) GRI 203-1 Investment in infrastructure and supported services Raw materials, Communities GRI 203-2 Important indirect economic impact Raw materials, Packaging, People, Communities MATERIAL TOPIC: PROCUREMENT PRACTICES (20T6) (GRI 204) GRI 204-1 The proportion of costs for local suppliers Raw materials, Packaging 99°/o of packaging material suppliers are from the EU, 1 supplier from Great Britain. 100°/o of barley and 3/4 of hops are from local Czech or Slovak suppliers. GRI STANDARDS INDICATORS INFORMATION LOCATION COMMENTS 146 /147 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS MATERIAL TOPIC: MEASURES AGAINST CORRUPTION AND UNCOMPETITIVE BEHAVIOUR (20T6) (GRI 205, 206) GRI 205-1 Activities assessed with regard to risks related to corruption About the company - Ethics https://www.prazdroj.cz/nas-pribeh/ dulezite-listiny GRI 205-2 Communication and training in the area of anti-corruption measures People - Ethics GRI 205-3 Confirmed cases of corruption and measures taken None. GRI 206-1 Disciplinary actions for breaking the rules of protection of competition None. MATERIAL TOPIC: TAXES (GRI 207) GRI 207-1 Approach to paying taxes About the company https://www.asahigroup-holdings.com/ en/company/policy/tax_code_of_ conduct.html GRI 207-4 vlastni Amount of taxes paid About the company; Annual reports CZ and SK ENVIRONMENTAL MATERIAL TOPIC: MATERIALS (20T6) (GRI 30T) GRI 301-1 Material consumption according to weight or volume Raw materials, Packaging, GRI data -Materials GRI 301-2 own Proportion of packaging material made from recycled material Packaging, GRI data - Materials We monitor an alternative indicator - the proportion of packaging material made from recycled material, which is more relevant for beverage producers. GRI 301-3 Takeback of products and packaging material Packaging The return rate of kegs and crates is almost 100%. The return rate of glass bottles is 98%. MATERIAL TOPIC: ENERGY (20T6) (GRI 302) GRI 302-1 Energy consumption within the organisation Carbon neutrality, GRI data - Energy Apart from the total, we state the figures for individual breweries and malt houses. GRI 302-3 Energy performance Carbon neutrality, GRI data - Energy We monitor energy consumption separately for malt and beer. GRI 302-4 Reducing energy consumption Carbon neutrality MATERIAL TOPIC: WATER (20T8) (GRI 303) GRI 303-1 Interaction with water as a shared resource Water GRI 303-2 Management of water discharge-related impacts Water.GRI data - Water GRI 303-3a Water withdrawal Water, GRI data - Water GRI 303-4a Waste water discharge GRI data - Water GRI 303-5 own Water consumption per product (product unit) Water.GRI data - Water We state water consumption in the form of our own indicator calculated per 1 hi of beer produced and m3 per tonne of malt. MATERIAL TOPIC: BIODIVERSITY (GRI 304) GRI 304-1 Plants in protected areas and areas with high biological value or in their proximity. None. GRI 304-3 own Protection of biodiversity Water, Raw Materials This does not concern protection or corrective measures in plants. This is a volunteer activity for protecting valuable areas in the surroundings. GRI STANDARDS INDICATORS INFORMATION LOCATION COMMENTS Sustainability Report 2022 KAPITOLA XII. G R I STANDARDY MATERIAL TOPIC: EMISSIONS (20T6) (GRI 305) GRI 305-1 Direct emissions of greenhouse gases (Scope T) Carbon neutrality.GRI data - Emissions GRI 305-2 Indirect emissions of greenhouse gases from energy (Scope 2) Carbon neutrality, GRI data - Emissions GRI 305-3 Other indirect emissions of greenhouse gases (Scope 3) From grain to glass Newly added. GRI 305-4 Intensity of emissions of greenhouse gases Carbon neutrality, GRI data - Emissions GRI 305-5 Reduction of the intensity of emissions of greenhouse gases Carbon neutrality, Packaging MATERIAL TOPIC: WASTE (2020) (GRI 306) GRI 306-1 Waste and significant waste-related impacts Packaging, Waste GRI 306-2 Management of waste-related impacts Packaging, Waste GRI 306-3 Waste generated Waste, GRI data - Waste GRI 306-4 Waste diverted from disposal Waste, GRI data - Waste GRI 306-5 Waste diverted to disposal Waste, GRI data - Waste MATERIAL TOPIC: SUPPLIERS ENVIRONMENTAL ASSESMENTS (20T6) (GRI 308) GRI 308-1 Evaluating environmental criteria in new suppliers Since 2021, all new suppliers with contracts with a value over EUR 100,000 obtain accreditation based on the Supplier Risk Assessment, part of which are also ESG criteria. GRI 308-2 Negative environmental impacts of the supply chain on the environment and measures taken There have been no extraordinary events or serious accidents which would have a negative impact on the environment. SOCIAL MATERIAL TOPIC: EMPLOYMENT (20T6) (GRI 40T) GRI 401-1 New employee hires and employee turnover GRI data- People We report numbers for this indicator. GRI 401-2 Benefits provided to full-time employees which are not provided to temporary employees or part-time employees. People GRI 401-3 a, b, c Parental leave (PL) People, GRI data- People We report data a-c) about taking, starting and returning from ML and PL. We do not calculate the ratio of returning and retention (d, e). MATERIAL TOPIC: RELATIONSHIP BETWEEN EMPLOYEES AND MANAGEMENT (GRI 402) GRI 402 Minimum notice period for announcing changes in operation The notice period is one month before organisational changes are decided and announced. This is stated in the collective agreements. (Newly added) GRI STANDARDS INDICATORS INFORMATION LOCATION COMMENTS 148 /149 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS MATERIAL TOPIC: OCCUPATIONAL HEALTH AND SAFETY (20T8) (GRI 403) GRI 403 own Approach to health and safety at work and protection of employees' health People, About the company GRI 403-1 Occupational health and safety management system GRI 403-2 Identifying risks, risk assessment and resolving incidents GRI 403-3 Healthcare for employees Requirements for the description of the managerial approach according to indicators from 403-1 to 403-8 are too extensive for the purposes of this report. We provide a simplified disclosure here but we have the full complexity covered in our internal OHS system documentation. GRI 403-4 Worker participation, consultation, and communication on occupational health and safety GRI 403-5 Worker training in occupational health and safety People GRI 403-6 Promotion of worker health GRI 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships GRI 403-8 Workers covered by an occupational health and safety management system GRI 403-9 Work-related injuries GRI data - People Disclosure requirements c, d are managed by the OHS system. MATERIAL TOPIC: TRAINING AND EDUCATION (20T6) (GRI 404) GRI 404-1 Average number of hours of training per employee GRI data- People GRI 404-2 Programmes focused on the development of employees' skills and the support of permanent employment People GRI 404-3 Percentage of employees receiving regular performance and career development reviews Regular yearly performance review and review of career development apply to all employees - either with a part-time or a full-time employment contract. MATERIAL TOPIC: DIVERSITY, EQUAL OPPORTUNITIES AND NON-DISCRIMINATION (20T6) (GRI 405, GRI 406) GRI 405-1 Diversity of management bodies and employees People, GRI data - People, Annual reports CZ and SK Data reported herein apply to the executive committee - directors - CZ and SK together. Members of individual statutory bodies are stated in annual reports. GRI 405-2 The ratio of base pay and remuneration of men and women People - Equal Salary certification Newly added. GRI 406-1 Confirmed cases of discrimination and measures taken None. GRI STANDARDS INDICATORS INFORMATION LOCATION COMMENTS MATERIAL TOPIC: HUMAN RIGHTS (GRI 407, GRI 408, GRI 409, GRI 410, GRI 4T I, GRI 4T2) Sustainability Report 2022 KAPITOLA XII. G R I STANDARDY Human rights - own About the company, People - Ethics GRI 407-1 Freedom of association and collective bargaining (20T6) We are committed to protecting human rights in all areas mentioned. We require the same approach from our suppliers. More detailed information in the Business Ethics Policy https://www.prazdroj.cz/nas-pribeh/dulezite-listiny GRI 408-1 Child labour (20T6) GRI 409-1 Forced and mandatory labour (20T6) GRI 410-1 Safety practices (20T6) GRI 411-1 Protection of the rights of original inhabitants (20T6) GRI 412-1 Evaluation of human rights protection (20T6) GRI 412-2 Employee training in human rights and related legislation and procedures People - Ethics MATERIAL TOPIC: LOCAL COMMUNITIES (20T6) (GRI 4T3) GRI 413-1 Operations engaged with local communities, evaluation of impacts and development programmes Communities GRI 413-2 Operations with existing or potential negative impacts on local communities We are not aware of any operations with existing or potential negative impacts on local communities. MATERIAL TOPIC: EVALUATING THE IMPACT OF SUPPLIERS ON SOCIETY (20T6) (GRI 4T4) GRI 414-1 New suppliers that were screened using social criteria Since 2021, all new suppliers with contracts with a value over EUR 100,000 obtain accreditation based on the Supplier Risk Assessment, part of which are also ESG criteria. MATERIAL TOPIC: PROTECTION OF THE HEALTH AND SAFETY OF CUSTOMERS (20T6) (GRI 4T6) GRI 416-1 Assessment of the health and safety impacts of product and service categories Responsibility GRI 416-2 Incidents of non-compliances in the area of the impacts of our goods and services on the health and safety of our customers None. MATERIAL TOPIC: MARKETING AND LABELLING OF PRODUCTS (20T6) (GRI 4T7) GRI 417-1 Requirements for product and service information and labelling Responsibility, Communities GRI 417-2 Incidents of non-compliance concerning product and service information and labelling None. GRI 417-3 Incidents of non-compliance concerning marketing communications None. MATERIAL TOPIC: CUSTOMERS' PRIVACY (20T6) (GRI 4T8) GRI 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data None. 150 /151 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS GRI DATA - PEOPLE PEOPLE 2-7 NUMBER OF EMPLOYEES AND COMPOSITION BY GENDER AND REGION CZ 2020 INDEFINITE PERIOD OF TIME DEFINITE PERIOD OF TIME FULL TIME PART TIME Women 754.3 666.3 88 722.5 31.8 Men 1,411.2 1,292.5 118.7 1,409.3 1.9 TOTAL 2,165.5 SK 2020 INDEFINITE PERIOD OF TIME DEFINITE PERIOD OF TIME FULL TIME PART TIME Women 167.3 138.8 28.4 164.1 3.2 Men 399.6 353.7 45.9 399.6 0 TOTAL 566.9 CZ 2021 INDEFINITE PERIOD OF TIME DEFINITE PERIOD OF TIME FULL TIME PART TIME Women 742.5 667.5 75 709.6 32.9 Men 1,420.7 1,317.4 103.3 1,417.3 3.3 TOTAL 2,163.2 SK 2021 INDEFINITE PERIOD OF TIME DEFINITE PERIOD OF TIME FULL TIME PART TIME Women 168.8 148.4 20.3 166.2 2.6 Men 388.8 357.2 31.6 388.7 0.1 TOTAL 557.6 CZ 2022 INDEFINITE PERIOD OF TIME DEFINITE PERIOD OF TIME FULL TIME PART TIME Women 766 649.5 116.5 727.6 38.4 Men 1,420 1,297.9 122.3 1,416.7 3.6 TOTAL 2,186 SK 2022 INDEFINITE PERIOD OF TIME DEFINITE PERIOD OF TIME FULL TIME PART TIME Women 173.8 141.1 32.8 169.9 0 Men 400 353.6 46.5 400.1 3.9 TOTAL 574 All data are calculated as an average of the number of employees (1.1. - 31.12. of the given year). There has not been any major fluctuation in the number of employees year on year. Sustainability Report 2022 KAPITOLA XII. GRI STANDARDY PEOPLE 2-8 NUMBER AND COMPOSITION OF WORKERS WHO ARE NOT EMPLOYEES Agreement to Perform Work ("DPP" in Czech) and Agreement to Complete a Job ("DPC" in Czech) is concluded for work where no permanent contracts are included, e.g. seasonal work within the production area, in the Craft and Heritage Department, summer work, internships, etc. CZ 2020 DPČ DPP 202T DPČ DPP 2022 DPČ DPP Women 130.8 253.5 111.8 241.8 115.5 272.6 Men 109.3 256.2 98.7 250.7 100 274.7 TOTAL 749.8 240. T 509.7 703 2T0.5 492.5 762.8 2T5.5 547.3 SK 2020 DPČ DPP 202T DPČ DPP 2022 DPČ DPP Women 0.9 5.4 0.9 4.7 1.3 18.3 Men 2.1 32.2 2 31.4 1.1 32.3 TOTAL 40.6 3 37.6 39 2.9 36. T 53 2.4 50.6 All data are calculated as an average of the number of employees (1.1. - 31.12. of the given year). PEOPLE 401-1 a RECRUITMENT OF NEW EMPLOYEES CZ 2020 <30 30-50 > 50 202T <30 30-50 > 50 2022 <30 30-50 > 50 Women 115 49 53 13 90 49 40 1 162 76 79 7 Men 189 88 88 13 155 76 63 16 238 100 117 21 TOTAL 304 T37 T4T 26 245 T25 T03 T7 400 T 76 T96 28 SK Women 18 10 8 0 14 7 7 0 39 21 16 2 Men 71 37 28 6 61 34 21 6 79 35 36 8 TOTAL 89 47 36 6 75 4T 28 6 TT8 56 52 TO All data are calculated as a cumulative count of the number of employees (1.1. - 31.12. of the given year). PEOPLE 401-1 b FLUCTUATION OF EMPLOYEES (ALL TERMINATIONS INCLUDED) CZ 202T <30 30-50 > 50 2022 <30 30-50 >50 Women 101 39 46 16 109 43 47 19 Men 293 65 89 39 199 70 88 41 TOTAL 394 T 04 T35 55 308 TT3 T35 60 SK Women 17 9 6 2 44 11 25 8 Men 61 29 27 5 78 25 35 18 TOTAL 78 38 33 7 T 22 36 60 26 All data are calculated as a cumulative count of the number of employees (1.1. - 31.12. of the given year). 152 /153 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS PEOPLE 401-3 a, b, c THE OVERALL NUMBER OF EMPLOYEES WHO WERE ON PARENTAL LEAVE 2020 202T 2022 cz ON LEAVE LEFT RETURNED ON LEAVE LEFT RETURNED ON LEAVE LEFT RETURNED Women 133 33 26 138 39 32 122 27 20 Men 4 0 2 1 0 0 2 0 2 TOTAL T37 33 28 T39 39 32 T24 27 22 SK 2020 202T 2022 Women 35 11 10 26 2 3 30 8 8 Men 3 1 0 4 3 0 15 12 0 TOTAL 38 T2 TO 30 5 3 45 20 8 All data are calculated as a cumulative count of the number of employees (1.1. - 31.12. of the given year). PEOPLE 405-1 DIVERSITY - COMPANY MANAGEMENT AND EMPLOYEES What percentage of employees fall in the following categories: A) COMPANY MANAGEMENT * CZ/SK 2020 <30 30-50 > 50 2021 <30 30-50 > 50 2022 <30 30-50 > 50 Women 15.3% 0 14.6% 0.6% 21.4% 0 21.4% 0 31.25% 0 31.25% 0 Men 84.7% 0 65.6% 19.1% 78.6% 0 50.0% 28.6% 68.75% 0 50.0% 18.75% 80.2% 19.8% 71.4% 28.6% 81.25% 18.75% * For the purposes of calculating the number of employees including directors CZ/SK. Sustainability Report 2022 KAPITOLA XII. GRI STANDARDY B) EMPLOYEES CZ 2020 <30 30-50 > 50 2021 <30 30-50 > 50 2022 <30 30-50 > 50 MANAGEMENT Women 26.81% 0 21.88% 4.93% 27.41% 0.67% 19.95% 6.79% 27.71% 0 21.08% 6.63% Men 73.18% 0 61.54% 11.64% 72.59% 0.18% 59.07% 13.34% 72.29% 1.20% 58.43% 12.65% 0 83.42% 16.57% 0.85% 79.02% 20.13% 1.20% 79.51% 19.28% SPECIALISTS Women 38.60% 5.80% 26.75% 6.05% 38.48% 4.40% 27.40% 6.68% 38.78% 3.27% 29.39% 6.12% Men 61.40% 3.46% 43.20% 14.73% 61.52% 3.69% 42.22% 15.61% 61.22% 4.49% 41.22% 15.51% 9.26% 69.95% 20.78% 8.09% 69.62% 22.29% 7.76% 70.61% 21.63% OTHER Women 35.25% 5.58% 19.72% 9.95% 34.54% 4.88% 19.15% 10.51% 35.36% 5.22% 19.26% 10.88% Men 64.75% 9.77% 37.40% 17.58% 65.46% 9.15% 37.28% 19.01% 64.64% 8.38% 35.39% 20.87% 15.35% 57.12% 27.53% 14.03% 56.43% 29.52% 13.60% 54.65% 31.75% SK 2020 <30 30-50 > 50 2021 <30 30-50 > 50 2022 <30 30-50 > 50 MANAGEMENT Women 35.63% 0 24.14% 11.49% 34.35% 1.39% 21.88% 11.08% 34.15% 2.71% 22.49% 8.94% Men 64.37% 2.87% 55.75% 5.75% 65.65% 2.77% 62.88% 0 65.85% 2.71% 62.33% 0.81% 2.87% 79.89% 17.24% 4.16% 84.76% 11.08% 5.42% 84.82% 9.75% SPECIALISTS Women 37.68% 8.81% 25.61% 3.26% 42.30% 6.97% 32.01% 3.32% 41.00% 8.84% 28.94% 3.22% Men 62.32% 3.10% 47.80% 11.42% 57.70% 2.65% 43.45% 11.61% 59.00% 3.54% 44.21% 11.25% 11.91% 73.41% 14.68% 9.62% 75.46% 14.93% 12.38% 73.15% 14.47% OTHER Women 27.82% 5.11% 14.75% 7.96% 28.23% 4.50% 14.95% 8.78% 28.38% 4.63% 15.01% 8.74% Muži 72.17% 9.75% 42.79% 19.63% 71.78% 9.19% 40.58% 22.01% 71.62% 8.98% 39.95% 22.69% 14.86% 57.54% 27.59% 13.69% 55.53% 30.79% 13.61% 54.96% 31.43% Management and senior management are included as management. Executives are not included. All data are calculated as an average of the number of employees (1.1. - 31.12. of the given year). 154 /155 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS LIDE 404-1 TRAININGS AVERAGE NUMBER OF HOURS OF TRAINING PER EMPLOYEE PER YEAR Includes statutory, mandatory and development training. cz 202T SENIOR MANAGEMENT MANAGEMENT SPECIALISTS OTHER CELKEM T0.T T2.7 22. T T5.2 8.2 Women 7.6 14.3 20.0 12.3 5.9 Men 11.5 12.3 22.9 17.2 9.6 SK 202T SENIOR MANAGEMENT MANAGEMENT SPECIALISTS OTHER CELKEM T0.7 7.2 T7.5 T9.6 9.0 Women 10.4 4.0 15.3 15.5 8.9 Men 10.8 8.8 18.6 23.5 9.1 CZ 2022 SENIOR MANAGEMENT MANAGEMENT SPECIALISTS OTHER CELKEM T6.2 23 3T 26.9 T3.4 Women 15.2 22.1 24.7 27.6 12.7 Men 16.7 23.2 33.8 26.4 13.7 SK 2022 SENIOR MANAGEMENT MANAGEMENT SPECIALISTS OTHER CELKEM T8.8 9.4 4T.4 30.2 T6 Women 20.2 7.8 47.6 33.5 16.2 Men 18.3 10.5 38.5 28.3 15.9 EXECUTIVES CZ/SK 2022 TOTAL TT.6 Women 10.25 Men 15.5 All data are calculated as a cumulative count of the number of employees (1.1. - 31.12. of the given year). Rate calculated based on the number of hours of training and the number of workers in the given category. Differences between hours are caused by different forms of training in the COVID period and in the period after COVID. Data for executives are not available for previous years in this breakdown. More information in the chapter People. Sustainability Report 2022 KAPITOLA XII. GRI STANDARDY PEOPLE 403-9 OCCUPATIONAL INJURIES A) EMPLOYEES NUMBER RATE 2020 202T 2022 2020 202T 2022 Number and rate of deaths as a consequence of an occupational injury CZ 0 0 0 0.000 0.000 0.000 SK 0 0 0 0.000 0.000 0.000 Number and rate of major injuries NOT Number and rate of work injuries with permanent consequences (without deadly injuries) CZ 1 4 i 0.054 0.214 0.052 SK 0 1 0 0.000 0.229 0.000 Number and rate of occupational injuries causing incapacity to work CZ 5 3 5 0.271 0.161 0.260 SK 1 1 1 0.212 0.229 0.221 Main types of occupational injuries finger injury, injury to a leg or arm, abrasions, muscle injuries, foot/leg injuries hand/arm injuries, leg injuries, head injuries Number of hours worked CZ 3,695,398 3,732,902 3,840,145 SK 944,483 871,962 903,895 B) SPECIALIZED SUPPLIERS - PERMANENT CONTR ACTORS * NUMBER RATE 2020 202T 2022 2020 202T 2022 Number and rate of deaths as a consequence of an occupational injury CZ 1 0 0 0.099 correction = 0.112 0.000 0.000 SK 0 0 0 0.000 0.000 0.000 Number and rate of major injuries NOT Number and rate of work injuries with permanent consequences (without deadly injuries) CZ 0 0 i 0.000 0.000 0.142 SK 0 0 0 0.000 0.000 0.000 Number and rate of occupational injuries causing incapacity to work CZ 1 1 2 0.099 correction = 0.112 0.099 correction = 0.153 0.284 SK 0 0 0 0.000 0.000 0.000 Main types of occupational injuries injury to fingers, leg and arm injuries, abrasions hand/arm fracture, foot/leg injury Number of hours worked CZ 2,015,290 correction = 1,783,402 3,046,925 correction = 1,307,637 1,409,213 SK 474,326 correction = 325,700 655,320 correction = 276,035 732,219 Explanation of the change in indicators: The methodology for calculating the number of hours worked by contractors was revised in 2022. A check revealed that some values were included twice in one indicator. This is the reason for the decrease in reported values. Hours worked within secondary distribution were included in the calculation as well. The rate based on 200,000 hours of work done for the equivalent of 100 workers. The data were gained from internal HR and HSE systems. The data include all workers whose work was controlled by the organisation. "SPECIALIZED SUPPLIERS (CONTRACTORS) > Contractors who we cooperate with in order to complete specific tasks which do not take up a major part of their working hours and/or who work for multiple employers (such as those working on yearly testing or maintenance of equipment) > Contractors engaged in specific projects/maintenance which are not part of regular operation processes (such as workers involved in a construction project) 156 /157 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS GRI DATA MATERIAL - WASTE MATERIAL 301-1 PURCHASED RAW MATERIALS FOR PRODUCTION The overall weight of materials which are used for the production and packaging of primary products RENEWABLE 20T9 2020 202T 2022 BARLEY (tonnes) CZ 168,000 136,640 143,035 152,033 SK 25,340 24,604 24,328 24,624 HOPS (kg) CZ 684,296 733,480 803,096 655,196 SK 28,608 39,688 34,053 44,124 CORN (tonnes) CZ n/a n/a n/a n/a SK 470 470 555 1 114 MALT (tonnes) CZ 4,043 (+ 7,022)* 3,476 (+ 5,072)* 3,705 (+ 6,066)* 5,071 (+ 6,822)* SK 247 203 308 338 SUGAR (tonnes) CZ 3,663 4,446 4,166 4,248 SK 1,767 1,165 1,166 278 NON-RENEWABLE AUXILIARY MATERIALS (tonnes) (Kieselguhr, stabilisation, base and other) CZ 4,231 4,620 3,825 4,311 SK 399 358 325 428 *Purchase from Plzeňský Prazdroj Slovensko, a.s. for Plzeňský Prazdroj, a.s. added. More information in the chapter Raw materials. MATERIALS USED FOR PURCHASED PACKAGING (tonnes) NON-RENEWABLE 20T9 CZ/SK 2020 CZ/SK 202T CZ/SK 2022 GLASS 27,858 33,887 modification = 32,219 34,178 modification = 31,935 30,288 Total CZ/SK PLASTIC 3,633 modification = 2,761 2,216 modification = 2,092 2,280 zmena = 1,299 CZ = 934 SK = 224 CRATES added 1,458 578 1,338 675 Total CZ/SK ALUMINIUM 7,767 8,989 9,687 CZ= 8,941 SK = 2,112 METAL 3,452 modification = 1,533 1,796 modification = 1,669 2,574 modification = 1,581 CZ= 1,459 SK= 131 KEGS added 1,891 409 616 0 RENEWABLE PAPER 4,837 modification = 5,355 5,257 modification = 6,058 5,508 modification = 6,226 CZ= 5,198 SK = 762 WOOD 5,526 2,832 4,487 CZ = 3,799 SK = 262 In previous years, the internal system did not enable monitoring CZ and SK separately. * In 2022, there was a change in the internal system, which now automatically calculates the purchase and material of packaging. The original figures were based on the budget. Changes to the calculation compared to previous years marked as modification. Sustainability Report 2022 KAPITOLA XII. G R I STANDARDY MATERIAL 301-2 - PP PROPORTION OF PACKAGING MATERIAL MADE FROM RECYCLED MATERIAL CZ/SK 20T9 2020 202T 2022 PLASTIC Plastic bottles (PET), pallet stretch wrap, shrinking/cassette wrap, keg, container bags, tank bags, crates 10.5% 23% 29% CZ = 40% SK = 88% PAPER Bottle labels, offset magazine, flexo magazine, offset cardboard, cardboard flexo, Mps, boxes, pallet layer 60% 66% 81% CZ= 81% SK = 89% ALUMINIUM Cans, can caps, foils, crown caps 36% 37% 43% CZ = 53% SK = 43% GLASS Bottles 67% 69% 71% CZ = 70% SK = 70% In previous years, the internal system did not enable monitoring CZ and SK separately. More information in the chapter Packaging. WASTE 306-3 WASTE FROM PRODUCTION PLANTS COMPOUNDS This does not include waste from distribution centres, administration centres and technical service stations, which amount to 0.15°/o of the overall value. TONNES 20T9 2020 2021 2022 BY - PRODUCTS CZ 160,697 164,460 159,970 172,778 (malt, brewer's yeast, barley tailings, malt culms, malt dust, etc.) SK 14,305 18,990 18,393 19,667 VARIOUS WASTE (kieselguhr, barley tailings, glass packaging, aluminium packaging, paper packaging, plastic packaging, wooden packaging, mixed packaging, labels, iron and other metals, biodegradable waste, mixed municipal waste, discarded electronic devices, sludge, construction waste, etc.) CZ 11,927 11,901 10,821 11,016 SK 1,116 1,018 773 994 HAZARDOUS WASTE (chemicals and solutions packaging, absorption agents, motor and mineral oils, oil filters, laboratory chemicals, fluorescent lights, dissolving agents, discarded devices containing chloroftuorocarbons, etc.) CZ 127 144 99 72 SK 65 10 3 3 188,237 196,523 190,059 204,533 TOTAL CZ 172,751 176,505 170,890 183,866 SK 15,486 20,018 19,169 20,667 158 /159 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS WASTE 306-4, 306-5 PROCESSING WASTE (WITH NO BY-PRODUCTS) 100% of by-products are processed by recycling. TONNES 20T9 2020 202T 2022 NO-BY-PRODUCT WASTE - TOTAL CZ 12,054 12,045 10,920 11,088 SK 1,181 1,028 776 997 TONNES 20T9 2020 202T 2022 RECYCLING kieselguhr, bitter sludge, barley tailings, glass, paper and adhesive tape, plastic, metals, biodegradable waste, hazardous waste (oils, batteries, electronic devices), etc. CZ Information in this structure is unavailable 5,621 8,081 10,029 SK 750 655 927 INCINERATION wooden packaging, mixed packaging, mixed municipal waste, hazardous waste (packaging of chemicals and solutions, absorption agents), etc. CZ Information in this structure is unavailable 4,142 1,381 347 SK 182 62 27 LANDFILL mixed municipal waste, mixed packaging material, tailings from bar screens, bulky waste, etc. CZ 2,413 2,282 1,458 713 SK 199 96 59 44 The proportion of dangerous waste is insignificant. Therefore, we consider this simplified way of presentation sufficient for the purposes of GRI 306-4 and 5 b, c. Waste management, depending on the particular type of waste, and waste disposal, is ensured through contractors with valid permissions and authorization for waste management in compliance with applicable legislation. More information in the chapter Waste. GRI DATA ENERGY - WATER - EMISSIONS DATA ABOUT WATER, ENERGY, EMISSIONS APPLY TO THE PREMISES OF PRODUCTION PLANTS. Further consumption is measured in distribution centres in the ownership of the organization, yet it constitutes only 0.4 °/o of the overall consumption. The Proud craft brewery (Pilsen premises) is insignificant from the point of view of consumption. PRODUCTION IN BREWERIES (in millions hi) BREWERIES 2019 2020 202T 2022 Pilsen 5.1 4.8 4.6 5.3 Nošovice 1.9 2 2.2 2.5 Velké Popovice 1.8 1.6 1.5 1.4 Velký Šariš 1 1.2 1 1.2 PRODUCTION IN MALT HO MALT HOUSES USES (in thousands t< 2019 >nnes) 2020 202T 2022 Pilsen 82 77 78 88 Nošovice 36 35 35 34 Velký Šariš 19 19 19 21 Sustainability Report 2022 KAPITOLA XII. GRI STANDARDY ENERGY 302-1 Amounts of energy purchased TOTAL ENERGY CONSUMPTION (GJ) cz 20T9 2020 2021 2022 NON-RENEWABLE 1,084,466 1,084,246 937,029 602,141 Natural gas 332,396 341,109 340,697 304,803 LPG 28,637 26,563 26,341 23,652 Diesel +LTO 75 141 188 29,525 Electricity 231,216 226,472 222,580 238,782 Heat 8,028 4,924 6,250 5,379 Cooling 484,114 485,037 340,973 0 RENEWABLE 27,153 20,285 148,422 514,250 Biogas 27,153 20,285 21,858 16,491 Biomass steam * n/a n/a 126,564 497,759 TOTAL 1,111,619 1,104,531 1,085,451 1,116,391 *Heat from biomass since October 2021 Burning LTO instead of natural gas at the Nosovice Brewery as a response to the energy crisis with the aim of reducing natural gas consumption. SK 20T9 2020 2021 2022 NON-RENEWABLE Natural gas 99,347 106,678 106,199 109,703 LPG 1,649 2,140 1,641 1,644 Electricity 29,333 30,909 28,962 29,748 TOTAL 130,329 139,727 136,802 141,095 ENERGY CONSUMPTION IN BREWERIES (GJ) 20T9 2020 2021 2022 PILSEN 65,818 61,563 64,639 65,022 Natural gas 47,235 43,300 46,485 49,676 LPG 18,583 18,250 18,142 15,329 Diesel n/a 13 12 17 NOŠOVICE 120,837 T 31,944 133,157 136,975 Natural gas 104,812 118,336 119,284 107,948 Diesel + LTO 50 128 143 15,813 LPG 5,209 4,130 4,106 4,467 Biogas (renewable) 10,766 9,350 9,624 8,747 VELKÉ POPOVICE T T 4,850 104,701 103,520 87,626 Natural gas 101,314 95,704 93,172 81,328 LPG 4,845 4,182 4,093 3,556 Biogas (renewable) 8,691 4,815 6,255 2,742 VELKÝ ŠARIŠ 60,254 69,683 68,159 69,330 Natural gas 58,605 67,543 66,518 67,686 LPG 1,649 2,140 1,641 1,644 160 /161 £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS ELECTRICITY AND HEAT CONSUMPTION - BREWERIES (CJ) 20T9 2020 2021 2022 PILSEN Electricity Heat Biomass steam (renewable) 380,388 114,083 266,305 n/a 390,7T 1 112,304 278,407 n/a 374,879 109,551 197,620 67,708 404,044 119,379 0 284,665 NOŠOVICE Electricity 36,773 41,713 41,898 43,751 VELKÉ POPOVICE Electricity 39,829 35,430 33,509 33,055 VELKÝ ŠARIŠ Electricity 22,845 24,146 22,830 23,162 ENERGY CONSUMPTION MALT HOUSES (GJ) 2019 2020 2021 2022 PILSEN n/a n/a n/a n/a NOŠOVICE Natural gas Diesel + LTO Biogas (renewable) 86,755 79,035 25 7,695 89,888 83,768 n/a 6,120 87,769 81,757 33 5,979 84,548 65,851 13,695 5,002 VELKÝ ŠARIŠ Natural gas 40,742 39,135 39,681 42,017 CONSUMPTION OF ELECTRICITY, STEAM AND COOLING MALT HOUSES (GJ) 20T9 2020 2021 2022 PILSEN Electricity Cooling Heat Biomass steam (renewable) 255,447 29,610 8,028 217,809 n/a 237,709 26,155 4,924 206,630 n/a 235,379 26,920 6,250 143,354 58,856 250,652 32,170 5,379 0 213,103 NOŠOVICE Electricity 10,919 10,868 10,700 10,427 VELKÝ ŠARIŠ Electricity 40,742 39,135 39,681 42,017 Sustainability Report 2022 KAPITOLA XII. GRI STANDARDY ENERGY 302-3 PRODUCT ENERGY INTENSITY Ratio of energy consumption and the overall volume of beer production in breweries (MJ/hl) BREWERIES 20T9 2020 202T 2022 Pilsen 83.16 91.37 91.62 85.67 Nošovice 76.80 82.29 77.58 69.69 Velké Popovice 76.54 84.34 84.93 84.08 Velký Šariš 77.87 77.42 79.59 72.66 Ratio of energy consumption anc MALT HOUSES the overall volume of malt 20T9 production in malt houses 2020 (MJ/tonne) 202T 2022 Pilsen 2,883 2,889 2,798 2,689 Nošovice 2,649 2,734 2,703 2,668 Velký Šariš 2,504 2,387 2,397 2,280 More information in the chapter Carbon neutrality. WATER WATER 303-5-PP AVERAGE WATER CONSUMPTION BREWERIES (hl/hl) Ratio of water consumption and the overall volume of beer production in the given location. BREWERIES 2019 2020 202T 2022 Pilsen 3.26 3.35 3.36 3.12 Nošovice 2.53 2.57 2.41 2.29 Velké Popovice 2.85 2.97 2.91 2.97 Velký Šariš 2.89 2.78 2.79 2.73 AVERAGE WATER CONSUMPTION MALT HOUSES (m3/t) Ratio of water consumption and the overall volume of malt production in the given location. MALT HOUSES 20T9 2020 202T 2022 Pilsen 4.25 3.98 3.95 3.61 Nošovice 3.9 3.83 3.96 3.83 Velký Šariš 3.6 3.66 3.53 3.46 We have been monitoring the indicator long-term and started adding it to the report in 2022. 162 /163 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS WATER 303-3a WATER WITHDRAWAL AND WATER SOURCE BREWERIES (m3) 20t9 2020 2021 2022 pilsen 1,677,605 1,598,380 1,549,244 1,650,058 Municipal water mains 797,938 812,815 711,411 757,939 Own wells 879,667 785,564 837,833 892,119 nošovice 505,037 524,855 525,246 579,369 Municipal water mains velké popovice 524,224 465,378 438,701 403,509 Municipal water mains 214,232 172,621 163,975 154,923 Own wells 309,992 292,757 274,726 248,586 velký šariš 295,395 326,289 306,889 338,247 Municipal water mains WATER WITHDRAWAL AND WATER SOURCE MALT HOUSES (m3) 2019 2020 2021 2022 pilsen 350,786 308,319 310,297 317,429 Municipal water mains 146,297 65,299 24,441 65,396 Own wells 204,489 243,020 285,855 252,033 nošovice 139,338 135,797 137,899 131,667 Municipal water mains 46,297 27,959 28,442 21,814 Own wells 93,041 107,838 109,457 109,853 velký šariš 67,847 70,360 67,430 73,653 Municipal water mains 17,319 16,372 13,757 21,515 Own wells 50,528 53,988 53,673 52,138 The water withdrawal mix depends on the current water management situation. WATER 303-4a PROCESSING OF WASTE WATER BREWERIES (m3) 2019 2020 2021 2022 pilsen 783,580 772,269 779,185 749,701 Sewage system 746,458 740,309 750,433 747,735 River 37,122 31,960 28,752 1,966 nosovice 339,612 560,527 512,556 502,882 Sewage system 339,612 514,821 450,132 450,865 River 0 45,706 62,424 52,017 popovice 308,321 281,456 242,868 234,825 River §ari§ 269,079 214,532 188,237 243,191 Sewage system Sustainability Report 2022 KAPITOLA XII. GRI STANDARDY PROCESSING OF WASTE WATER MALT HOUSES (m3) 20T9 2020 202T 2022 PILSEN Sewage system 305,379 237,882 239,904 253,595 NOŠOVICE Sewage system 88,078 n/a n/a n/a VELKÝ ŠARIŠ n/a n/a n/a n/a* *n/a - water is discharged through breweries WATER 303-3, 4 (SUMMARY) WATER WITHDRAWAL AND PROCESSING CZ (m3) 20T9 2020 202T 2022 SOURCE AND CONSUMPTION Municipal water mains Own wells 3,196,989 1,709,800 1,487,189 3,032,730 1,603,550 1,429,180 2,961,387 1,453,516 1,507,871 3,082,031 1,579,441 1,502,591 WASTE WATER Sewage system River 1,824,970 1,479,527 345,443 T ,852,134 1,493,012 359,122 1,774,513 1,440,469 334,044 1,741,003 145,2195 288,808 WATER WITHDRAWAL AND PROCESSING, SK (m3) 20T9 2020 2021 2022 SOURCE AND CONSUMPTION Municipal water mains Own wells 363,242 312,714 50,528 396,649 342,661 53,988 374,319 320,646 53,673 411,900 359,762 52,138 WASTE WATER Sewage system 269,079 214,532 188,237 243,191 WASTE WATER PROCESSING PILSEN - sewage water into the municipal water treatment plant, pH neutralization. NOŠOVICE - sewage water is pre-cleaned in anaerobic equipment within the brewery, then to the municipal water treatment plant VELKÉ POPOVICE - sewage water is completely treated by the brewery in its waste water treatment plant. VELKÝ ŠARIŠ - sewage water to municipal water treatment plant without initial treatment. More information in the chapter Water. 164 /165 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS EMISSIONS We follow the GHG greenhouse gases protocol while measuring. Emission factors source: National Inventory Report (NIR) https://www.mzp.cz/cz/vypoctove_faktory_emise Emission factor as for electricity and purchased cooling: from suppliers. EMISSIONS 305-1, 305-2, TOTAL SCOPE 1 AND 2 CZ (t C02) 20T9 2020 2021 2022 SCOPE T 20,307 20,589 20,633 20,651 Natural gas 18,416 18,829 18,885 16,905 LPG 1,886 1,750 1,734 1,558 Diesel + LTO 6 10 140 2,188 Biogas (renewable) 0 0 0 0 SCOPE 2 61,439 58,772 47,122 20,445 Electricity 18,861 18,705 18,474 19,708 Cooling 1,192 668 1,105 737 Heat 41,386 39,398 26,828 0 Biomass steam* n/a n/a 0 0 (renewable) SCOPE T AND 2 81,746 79,361 67,041 41,097 TOTAL SCOPE 1 AND 2 SK (t C02) 20T9 2020 2021 2022 SCOPE T 5,636 6,075 6,016 6,213 Natural gas 5,532 5,939 5,913 6,109 LPG 104 135 103 104 SCOPE 2 1,365 1,451 1,345 1,386 Electricity SCOPE T AND 2 7,001 7,526 7,361 7,599 DIRECT EMISSIONS SCOPE 1 BREWERIES (t C02) 20T9 2020 2021 2022 PILSEN 3,841 3,604 3,773 3,766 Natural gas 2,617 2,401 2,577 2,755 LPG 1,224 1,202 1,195 1,010 Diesel n/a 1 1 1 NOSOVICE 6,154 6,790 6,894 6,452 Natural gas 5,807 6,508 6,613 5,986 LPG 343 273 270 294 Diesel + LTO 4 9 11 172 Biogas (renewable) 0 0 0 0 VELKÉ POPOVICE 5,932 5,587 5,431 4,768 Natural gas 5,613 5,312 5,162 4,514 LPG 319 275 269 254 Biogas (renewable) 0 0 0 0 VELKÝ ŠARIŠ 3,367 3,896 3,807 3,873 Natural gas 3,263 3,761 3,704 3,769 LPG 104 135 103 104 *Heat from biomass since October 2021 Sustainability Report 2022 KAPITOLA XII. GRI STANDARDY INDIRECT EMISSIONS SCOPE 2 BREWERIES (t C02) 20T9 2020 2021 2022 PILSEN 32,018 31,800 24,522 9,749 Electricity 9,188 9,160 8,974 9,749 Heat 22,830 22,640 15,578 0 Biomass steam* n/a n/a 0 0 (renewable) NOŠOVICE 3,080 3,515 3,524 3,688 Electricity VELKÉ POPOVICE 3,105 2,863 2,722 2,638 Electricity VELKÝ ŠARIŠ 1,048 1,120 1,045 1,064 Electricity DIRECT EMISSIONS SCOPE 1 MALT HOUSES (t C02) 20T9 2020 2021 2022 PILSEN n/a n/a n/a n/a NOŠOVICE 4,381 4,607 4,535 4,666 Natural gas 4,379 4,607 4,533 3,651 Diesel + LTO 2 n/a 2 1,015 Biogas (renewable) 0 0 0 0 VELKÝ ŠARIŠ 2,269 2,179 2,209 2,341 Natural gas INDIRECT EMISSIONS SCOPE 2 MALT HOUSES (t C02) 20T9 2020 2021 2022 PILSEN 22,323 19,677 14,709 3,490 Electricity 2,573 2,251 2,354 2,753 Cooling 1,193 668 1,105 737 Heat 18,556 16,759 11,250 0 Biomass steam* n/a n/a 0 0 (renewable) NOŠOVICE 9T5 916 900 879 Electricity VELKÝ ŠARIŠ 3T7 330 299 322 Electricity *Heat from biomass since October 2021 166/167 £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS CHG PRODUCT EMISSIONS INTENSITY 305-4 C02 EMISSIONS SCOPE 1 AND 2 TO THE OVERALL VOLUME OF PRODUCED BEER IN BREWERIES C02 emissions intensity (kg C02e/hl) BREWERIES 2019 2020 202T 2022 Pilsen 6.97 7.42 6.14 2.56 Nošovice 4.62 5.04 4.78 4.41 Velké Popovice 4.92 5.4 5.41 5.45 Velký Šariš 4.32 4.27 4.42 3.99 C02 EMISSIONS SCOPE 1 AND 2 TO THE OVERALL VOLUME OF PRODUCED MALT IN BREWERIES C02 emissions intensity (kg C02e/t) MALT HOUSES 2019 2020 202T 2022 Pilsen 270.6 254.2 187.4 39.7 Nošovice 148.1 155.8 156.1 161.1 Velký Šariš 137.05 130.5 131.3 124.9 More information in the chapter Carbon neutrality. Sustainability Report 2022 rnazars Mazars Accounting, s.r.o. SKY PARK OFFICES 1 Bottova 2A 811 09 Bratislava Plzeňský Prazdroj, a. s. Independent Limited Assurance Report 168 /168 Mazars Accounting, s.r.o. Registered in the Commercial Registry of the District Court Bratislava III, Section Sro, Item No. 36954/B £ BACK TO CONTENTS 0 BACK TO CHAPTER CONTENTS mazars Plzeňský Prazdroj, a. s. U Prazdroje 64/7 Východní Předměstí 301 00 Plzeň Independent Limited Assurance Report To the Board of Directors of Plzeňský Prazdroj, a. s. We have undertaken a limited assurance engagement on the selected sustainability information of Plzeňský Prazdroj, a.s. („the Company"), listed below under the .Scope and Subject Matter' section in the Company's Sustainability Report that covers the twelve-month period from 1 January to 31 December 2022 („the Report"). Scope and Subject Matter Our limited assurance engagement focused on the 2022 sustainability indicators as presented in the 2021 GRI Content Index of the Report on pages 145 to 167 and on the rest of the information in the Report. Criteria The applicable criteria defined by the Company and used to prepare the Report consist of internal group methodology based on Asahi Group Sustainability Principles and on the GRI Sustainability Reporting Standards published by the Global Reporting Initiative ("the Applicable Criteria"). Inherent Limitations The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different, but acceptable, measures and measurement techniques. In addition, GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine emission factors. The Company's Responsibility The Company is responsible for the selection of the Applicable Criteria and for the preparation and presentation of the Selected Information based on the Applicable Criteria. This responsibility includes the design, implementation, and maintenance of internal controls relevant to the preparation of the information contained in the Report that are free from material misstatement, whether due to fraud or error. Our Responsibility Our responsibility is to express a conclusion on the Report content and on the 2022 sustainability indicators as presented in the 2022 GRI Content Index of the Report based on the procedures we have performed and the evidence we have obtained. We conducted our limited assurance engagement in ndependent Limited Assurance Report -| Sustainability Report 2022 mazars accordance with the International Standard on Assurance Engagements 3000 (Revised) "Assurance Engagements Other than Audits or Reviews of Historical Financial Information" issued by the International Auditing and Assurance Standards Board. This standard requires that we plan and perform this engagement to obtain limited assurance about on whether anything has come to our attention that causes us to believe that the Report content and the 2022 sustainability indicators as presented in the 2022 GRI Content Index are not free from material misstatement evaluated against the Applicable Criteria. A limited assurance engagement undertaken in accordance with ISAE 3000 (revised) involves assessing the suitability in the circumstances of the Company's use of applicable Criteria as the basis for the preparation of the 2022 sustainability indicators and report content, assessing the risks of material misstatement of these sustainability indicators and report content whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of sustainability information. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. The procedures selected depend on the assurance practitioner's judgement. Independence and Quality Control We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Our firm applies the International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. Summary of Work Performed Our limited assurance procedures included, amongst others, the following: • Assessment of the suitability of the Applicable Criteria in terms of their relevance, comprehensiveness, reliability, neutrality and understandability and their consistent application. • Inquiries of Company's representatives responsible for collecting, consolidating, and calculating the selected information to assess the process of preparing the data, the reporting system, the data capture, and compilation methods as well as internal controls to the extent relevant for the limited assurance engagement. • Inspection of the relevant documentation of the systems and processes for compiling, analysing, and aggregating data and testing such documentation on a sample basis. • Analytical procedures and inspection of documents on a sample basis with respect to the compilation and reporting of quantitative data: at the level of Company, analytical procedures to verify the correct consolidation of the collected data as well as the consistency of their evolution, contribution of selected entities to the consolidated indicators, interviews to verify the correct ndependent Limited Assurance Report 2 170 /170 £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS mazars application of the procedures and detailed tests, consisting of checking the correct application of the definitions and procedures and reconciling the data with the supporting documents. • Critical review of the statements regarding plausibility and consistency of the Selected Information with the other information in the strategic documents. We have not carried out any work on data other than outlined in the Scope and Subject Matter section as defined above. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Conclusion Based on our limited procedures we have performed, nothing has come to our attention that causes us to believe that the Company's Report for the twelve-month period from 1 January 2022 to 31 December 2022 is not prepared, in all material respects, in accordance with the Applicable Criteria. Restriction on Use and Distribution Our report has been prepared for and only for the Board of Directors of the Company and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the content of this report. Bratislava, 28 July 2023 Mazars Accounting, s.r.o. Mickael Compagnon Managing Partner GRI Certificate number: C19892 Jana Ružička Sustainability Director ndependent Limited Assurance Report 3 Sustainability Report 2022 £ BACK TO CONTENTS £ BACK TO CHAPTER CONTENTS Prague, July 31, 2023 ABOUT THE REPORT This report contains data from the period from January 1, 2022 to December 31, 2022 together for the companies Plzeňský Prazdroj, a.s., registered office U Prazdroje 64/7, Východní Předměstí 301 00 Plzeň and Plzeňský Prazdroj Slovensko, a.s., registered office Pivovarská 9, 082 21 Veľký Šariš. We have been issuing our Sustainability Report every year since 2006. It is our goal to transparently inform about our activities in the area of sustainability, to share our experience and to present an overview of how we have been fulfilling our sustainability strategy To the Future! 2030. Our sustainability strategy covers all important areas of our activities from the perspective of their environmental, social and economic impacts. In the report, we present key indicators across all ESG pillars. We deal with environmental and social impacts, as well as governance of the company. We currently do not separate sustainability-related costs and investments from common costs and investments in our financial reporting. An internal system of set KPIs is the source of non-financial data for the current period in all defined areas of our business according to key pillars of our sustainability strategy. All the data must be checked and approved by the directors of individual sections, who are, at the same time, members of Plzeňský Prazdroj top management. In the report, we refer to selected indicators of international GRI Standards 1 (Global Reporting Initiative) without sector standards. They are related to areas in which we made our results public in previous years. By adding more detailed information according to GRI Standards we strive for a better transparency. We wish to encourage comparing our results and monitoring their development over time. Therefore, the data in the Appendix include the data from previous periods organised in the same way. Some of the earlier issued information have been edited. They were edited based on changes in methodology of calculating the indicator for occupational injuries, employee learning, and material purchases. We added new indicators related to employees, the average water consumption in malt houses, renewable energy resources, production volume and some other indicators in the area of management. For the first time, the report also deals with indirect greenhouse gases emissions (Scope 3), and we traced back and added the data from 2019 onwards. The areas of occupational safety and health, environmental data and data and information related to quality are part of the company's integrated management system, which underwent a recertification audit in 2023. The report underwent an external limited verification carried out by the Mazars Accounting, s.r.o. company, an independent party with ISAE 3000 standards. The delivery of some of our commitments and goals stated in this report is influenced by unpredictable external factors, which Plzeňský Prazdroj has no influence on. We will be glad if you share your views of our activities. IVAN TUČNÍK Sustainability and Integrated Projects Lead ivan.tu.cnik@asahibeer.cz 172 /173