sustainability report 2023 54 sustainability report 2023 nature speaks to us all the time. And we listen. Our Sustainability Report for this year represents a dialogue between Plzeňský Prazdroj and the world around it. Debates on various topics are inseparable from sitting over a glass of beer. In our case, it's just that these conversations move from the pub to where the ingredients for making beer come from - the countryside. Plzeňský Prazdroj thus symbolically sits at a round table with various ecosystems or elements. These ecosystems also speak to people in everyday life, but people often do not listen to what they have to say. We listen to these warning messages and try to change things for the better. In the brewing industry, it is absolutely crucial to continuously take care of the quality of beer tapping in pubs. Taking care of the nature that gives us the ingredients for making the beer is euqally crucial. Only if we listen to and hear the voices of nature will we be able to enjoy good beer for decades to come. And that is exactly what we have long tried to do at Prazdroj. To the future! GO TO TABLE OF CONTENTS ↓↓ 76 None of us lives on a desert island, isolated from the rest of society. To get along well and move forward, we need to listen to each other. Just like the Plzen townspeople more than 180 years ago, who expressed their dissatisfaction with the quality of the local beer. Then they joined forces to create the world's first lager as we all know it today. At Prazdroj, we are aware of the importance of perceiving signals from our immediate surroundings, be it our suppliers, customers or the surrounding landscape, struggling with the effects of climate change. We therefore establish partnerships that are built on mutual respect. They are exactly what help us cope with the challenges we face together. We are aware that if we want to be a successful company, we have to make the wider ecosystem we are part of prosper too. Last year, we again made significant progress in a number of areas and opened up some completely new topics. We focused on malting barley more than before. Our barley is grown in Czech, Moravian and Slovak fields. We buy all of our barley locally, building on long-term partnerships with nearly two hundred growers. That is why we are not happy seeing that the area of malting barley fields in the Czech Republic and Slovakia has declined in the long run. We have identified the cause and launched a major research project looking at how to increase the resilience of malting barley and stabilise its quality through regenerative agriculture practices. The first results from a similar project in hop fields, where we are one step ahead, have confirmed that regenerative practices can improve soil structure and water retention. In the Žatec region, we let several hop gardens blossom, which helped to bring this topic closer not only to growers but also to the general public. In both Let's listen to each other more cases, it is a long story. We are therefore delighted to see how many partners have embarked on this journey with us. Pubs and restaurants are in the middle of a long struggle with high energy prices and a number of other challenges. Last year, as their proud partner, we supported them with an investment of CZK 450 million in the Czech Republic and EUR 7 million in Slovakia. In this area, we understand the taproom issues best, where cooling systems are the biggest energy burden. For the first time ever, we measured the actual consumption of different types of coolers and started looking for ways to reduce energy and water consumption of the taproom by up to a third through its remodelling. In our breweries, we have reduced the average water consumption to an incredible 2.8 litres per litre of beer brewed. Moreover, our Radegast brewery at Nošovice has maintained a great 2.29 litres of water per litre of beer, which is the best result among all Czech breweries. But the brewery even took this success a step farther. Radegast began looking for ways to keep water in the landscape, and last year alone supported the construction of 29 ponds across the Czech Republic. We have also achieved great results in reducing our carbon footprint. Since 2019, we have reduced our total emissions from seed to glass by 19%, and almost halved them directly in production. The solar power plants we are building at all our breweries will contribute to further savings. The first of them, in Velké Popovice, was connected to the grid last year. Moreover, in Slovakia we already have a solution for a full transition to renewable sources of electricity. At the end of the year, we signed a virtual power purchase agreement, the first contract of its kind in the country, thanks to which a new solar park will be built at Iliašovce covering an area of nearly 9 hectares. This, together with the power plant right on the brewery premises, will cover all its consumption. The land will be used twice, as in addition to the solar panels, it will also serve as sheep pasture. The brewery in Veľký Šariš has also achieved zero dumping, so we are able to reuse all waste from our operations. In the Czech Republic, we have reduced the volume of landfilled waste by a half year-on-year. We have made significant progress in the area of packaging as well. The Slovak system of deposits for returnable packaging has enabled us to achieve full circularity of our packaging in Slovakia. We have increased our share of returnable packaging to 59%, while in the Czech Republic we maintain an excellent 69%. In Slovakia, we also symbolically closed the can circulation cycle. We now buy back used cans and have them processed into new sheet metal with 75% recycled content. As a result, we have halved their carbon footprint across our entire portfolio. We believe that in the near future we will be able to introduce a similar system in the Czech Republic as well. The success of deposits for returnable packaging in the Czech Republic is confirmed by our returnable bottles, which we fill 26 times on average and more than 98% of which are returned. That is why last year we launched a first in the Czech Republic, an automatic sorting line for returnable bottles in Plzen, which will help us make the whole process even more efficient. But we couldn't have done any of this without our people. Prazdroj is full of dedicated employees who realise the size and importance of the story they are part of. And they work hard every day to be able to hand it over in even better shape one day. I am very happy with the extent to which they are satisfied Dragos Constantinescu CEO with their work at Prazdroj. And I am even happier with the fact that they are fairly rewarded for their passion, diligence and commitment. Thanks to this, last year we became just the second company in the Czech Republic to receive the prestigious certificate of equal pay for men and women. I would also like to mention that we continue to expand our non-alcoholic portfolio. Every eighth beer sold in the Czech Republic last year, and every seventh beer sold in Slovakia, was alcohol-free. We actively promote responsible and moderate alcohol consumption and have initiated several projects in the area of preventing excessive drinking. All our success is based on dialogue - not only among colleagues within the company, but also in discussions with partners across our value chain. Active listening is the key to understanding what the other party wants to tell you. It is these discussions that shape us and continue to move us forward. Let's listen to each other even more. Cheers and here’s to the future! Ourbeersar e growninCzech,Moravi an and Slovak fields. 6 GO TO TABLE OF CONTENTS ↓↓ 988 Transparency is a fundamental principle of our business, which is why we have been openly sharing information about our sustainability activities since 2006, even though we are not yet required by legislation to do so. The report we submit contains data for the period from 1 January to 31 December 2023 jointly for Plzeňský Prazdroj, a. s., with its registered offices at U Prazdroj 64/7, Východní Předměstí, 301 00 Plzeň, and for Plzeňský Prazdroj Slovensko, a. s., with its registered offices at Pivovarská 9, 082 21 Veľký Šariš. Its content was aligned with the contents of the annual reports of both companies. Once again, we provide an overview of how we are implementing our To the Future! 2030 sustainability strategy, which covers all important areas of our activities in terms of environmental, social and economic impacts. In this report, we present key performance indicators in these areas and track their evolution over time. We share our experience and success stories and identify areas for improvement. We also want to raise general awareness of sustainable business and new trends. The report also contains selected information regarding our value chain. In this report, we present key indicators across all ESG pillars. We focus on environmental and social impacts as well as the management of impacts, risks and opportunities for our company. The source of the non-financial data is our internal system for tracking KPIs in all defined business areas according to the key pillars of our sustainability strategy. All data have been About this Report approved by the section directors, who are part of the top management. In our financial reporting, we do not currently separate sustainability costs and investments from current expenditure. For the purposes of this report, we consider the year 2023 to be the medium-term horizon, which is also the timeframe for the commitments in our current sustainability strategy. Like last year, our report refers to selected indicators of the international Reporting Standards of the Global Reporting Initiative (GRI) without sector standards. They cover topics for which we also published our results in previous years, and we have expanded the level of detail for some of the indicators. By including more detailed information as required by the GRI, we aim for greater transparency and are thus able to compare and evaluate results year on year. Therefore, the data in the annexed section also contain data for the previous periods, in most cases back to 2019, in the same data structure. Where we have made changes to the reported metrics or methodology from the previous report, these changes are stated and explained directly in the text. The most significant change in the 2023 report is a modification to the previously published information on indirect GHG emissions in our value chain (Scope 3). The reason for these modifications was the change in the carbon footprint calculation methodology, where we newly calculate 100% of malting barley emissions directly from data received from our growers. To consolidate the data according to the new methodology, we have now recalculated the data for 2019-2022 as well. We have now added absolute emissions numbers for each category of our value chain, the specific carbon footprint of our value chain and the breakdown of Scope 3 emissions into categories according to the GHG Protocol. This report is already partly governed by the new European Sustainability Reporting Standards (ESRS) following the European Corporate Sustainability Reporting Directive (CSRD), the requirements of which will only be binding for us for the 2025 report to be published in 2026. By doing this in advance, we aim at increasing transparency in reporting the results of our activities and at the same time ensuring continuity and a smooth transition to the new standards. The report includes, for example, a new chapter, Behind the Gates of the Breweries, which describes the structure of our value chain. We have expanded the other chapters with additional details, especially the About Us chapter, where we have newly included the product portfolio and a detailed description of the company's management structure. By disseminating information about our internal policies in all relevant areas, we provide a more detailed overview of Plzeňský Prazdroj's internal processes and values and highlight our efforts to integrate sustainability principles into all areas of our operations. The report has been independently verified by Forvis Mazars under a limited assurance regime and in accordance with ISAE 3000 standards. We regularly assess the risks and controls over our sustainability reporting process. The reporting includes risks associated with incomplete or inconsistent information, as well as risks associated with the input data accuracy and human errors in the reporting process due to the data aggregation from multiple systems. We therefore carry out checks to ensure that the information we report is complete and accurate. The scope of the report and the lack of uniform reporting standards and procedures for some data may cause differences in the interpretation of the information and thus affect its comparability and consistency. For some topics we work with estimates, and the notes for each chapter provide information on the sources of the estimates or the degree of uncertainty in the result. The current plans, forecasts and strategies presented in this report include forward-looking statements based on assumptions and opinions following from currently available information. Therefore, the achievement of some of the commitments and targets set out in this report is subject to external influences and circumstances that cannot be predicted and over whose development Plzeňský Prazdroj has no control. We welcome your views and feedback to help us continue in our efforts. Ivan Tučník Director for Sustainabilityand Integrated Projects ivan.tucnik@asahibeer.cz GO TO TABLE OF CONTENTS ↓↓ 1110 12 About Us 36 Strategies 50 Behind the Gates of Breweries 62 Carbon Neutrality 76 Water 88 Ingredients 106 Packaging 118 Waste 128 People 146 Responsibility 158 Communities 172 Standards 14 About Us 16 Our Breweries and Malthouses 18 Company Management 20 Our Portfolio 24 Results in 2023 26 Awards 29 Quality and Risk Management 31 Dialogue with Stakeholders 38 Pillars of Strategy 39 Our Commitments 40 What happened in 2023 44 Year 2023 in Numbers 46 Strategy Management and Implementation 48 Our Mission 52 Value Chain 56 Overview of Production Inputs 58 Our Suppliers 59 Distribution 60 Our Customers 64 Our Carbon Footprint 66 Photovoltaics 67 On the Path to Renewables 69 Transport and Logistics 70 Emissions 78 Water Management 80 Water Resources of Our Breweries 80 Water Consumption in Our Breweries 82 Water Projects 84 Water Treatment 86 Smart Taproom 90 Barley 92 FOR BARLEY (CZECH) / FOR BARLEY (SLOVAK) 96 Hops 99 FOR HOPS 102 Blossom for Hops 108 Life Cycle of Packaging 110 Returnable Packaging 111 Cans 114 Glass 116 Paper 120 Waste Management 120 Landfill 123 Waste from Production 124 Glass and Cups at Festivals 126 Secondary Materials from production 130 Satisfaction Survey 132 Diversity and Inclusion 135 Education 138 Well-being 140 Volunteering 141 Development of and Support for Young Talents 142 Health and Safety 144 Ethics 144 Prazdroj Stars 148 Responsible Drinking Ambassador 148 Education and Awareness 150 Commercial Communications 151 Prevention 153 International Commitments 154 Non-Alcoholic Drinks 156 Breaking Down Prejudices 160 Partnerships 164 Plzeňský Prazdroj Fund 165 Brewery Visitor Rates 166 Development of Czech Beer Culture 169 Star for Brewers 170 Fresh outlet 174 GRI index 180 ESRS index 185 GRI data 202 Independent Expertʼs Report sustainability report 2023 table of contents 13121212 about us I since then, we have taken care of it w ith love, professionalism and responsibility, protecting it for future generations. TO BE A NATIONAL ICON, THE STRONGEST PLAYER ON THE CZECH BEER MARKET AND PART OF THE COUNTRY'S CULTURAL HERITAGE IS A  BINDING COMMITMENT. WE ARE THEREFORE CONSTANTLY STRIVING TO INNOVATE AND MODERNISE OUR PROCESSES AND COMPANY MANAGEMENT SO AS NOT TO JUST REMAIN A FAMOUS BRAND, BUT BE A DYNAMIC COMPANY RELEVANT IN THE 21ST CENTURY. THIS INCLUDES, OF COURSE, CARE OF THE ENVIRONMENT, SUPPORT FOR COMMUNITIES, PROTECTION OF CONSUMERS AND MORE. I came to this world on October 5, 1842. BACK TO CONTENTS ↑↑ 1514 15 ABOUT US We are a leading beer producer in the Czech Republic and Slovakia, we are among the European leaders in the field and have long maintained our position as the largest exporter of Czech beer. In 2017, we became part of the global Asahi Group. Our beers are brewed in three breweries in Pilsen, including the experimental Proud brewery, and the traditional breweries at Nošovice, Velké Popovice and Veľký Šariš in Slovakia. Our breweries in Plzen, Nošovice and Veľký Šariš include malt houses that guarantee the use of top quality ingredients. Our beers are appreciated for their high quality and represent the best of the Czech beer making heritage. This is the reason why we have repeatedly won the title of Most Trusted Brand in the Czech Republic and Slovakia. We are proud that four of our brands carry the Protected Geographical Indication of “České pivo” (Czech Beer). However, it is equally important for us to follow the principles of sustainable management, to protect nature and to make a positive contribution to society as a whole. PLZEN NOŠOVICE VEĽKÝŠARIŠ VELKÉPOPOVICE 14 ABOUT US 16 OUR BREWERIES AND MALT HOUSES 18 COMPANY MANAGEMENT 20 OUR PORTFOLIO 24 RESULTS IN 2023 26 AWARDS 29 QUALITY AND RISK MANAGEMENT 31 DIALOGUE WITH STAKEHOLDERS BACK TO CONTENTS ↑↑ 16 17 BREWERIES AND MALT HOUSES OF PLZEŇSKÝ PRAZDROJ MODERNISATION IN BREWERIES Breweries are an important part of the national cultural heritage, which includes a rich history and traditional practices of the brewing craft. However, the preservation of the long tradition and quality of beer would not be possible without modernisation of our breweries. Maintenance and renovation are therefore among our investment priorities. In Velké Popovice, the brewery park has been revitalized and the old gatehouse has been reconstructed. In Plzen, green areas have been renovated and the Na Spilce pub was reopened after extensive reconstruction. The first restaurant operated directly by Prazdroj offers tank beer and a menu based on quality ingredients from local suppliers. A major innovation of the past year was the opening of a fully automated warehouse in the Plzen brewery and the commissioning of an automatic sorting line for returnable glass bottles. We are planning to continue with major innovations in 2024, especially to complete the new bottling line in Velké Popovice and to start the second phase of the Plzen warehouse automation. In 2023, we invested almost CZK 2 billion in the Czech Republic and approximately EUR 8.5 million in Slovakia IN THE DEVELOPMENT OF OUR BREWERIES. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 18 19 COMPANY MANAGEMENT AND CONTROL STRUCTURE Plzeňský Prazdroj does not issue publicly traded shares; it is owned by the Asahi Group Holdings through Asahi Europe & International Limited. Decision-making processes are thus centralised on the level of the executive management and the Board of Directors, under the supervision of the parent company. The executive management of Plzeňský Prazdroj is the main executive body, managing the day-to-day operations and ensuring that strategic objectives are met. The Board of Directors is primarily responsible for strategic management and business leadership. The Supervisory Board oversees the functioning of the company, monitors the activities of the Board of Directors and ensures that the latter acts in accordance with the law and the internal bylaws of the company. Members of the Board of Directors and 2/3rds of the Supervisory Board members are elected by the General Meeting. The remaining 1/3rd of the Supervisory Board members are elected by the employees. COMPANY MANAGEMENT(as of December 31, 2023)* Dragos Ionut Constantinescu - CEO Adam Legerský - Financial Director Pavel Šemík - Technical Director Roman Trzaskalik - Sales Director Czech Republic Martin Grygařík - Sales Director Slovakia Francesca Bandelli - Marketing Director Zuzana Balejová - HR Director Glenn-Neil Burgess - Supply Chain Director Pavlína Kalousová - PR and Communications Director * The management of Plzeňský Prazdroj controls both Czech and Slovak companies. Zu zanaBalejová Adam Legersky Dragos Ionut Co nstantinescu PavelŠem ík Roman Trzaskalik Glenn-NeilBu rgess BOARD OF DIRECTORS CZ (as of 31 December 2023)* Dragos Ionut Constantinescu Chairman of the Board of Directors, Adam Legerský Vice-Chairman of the Board of Directors, Paolo Alberto Francesco Lanzarotti Member of the Board of Directors, Akira Tsuiki Member of the Board of Directors, Pavel Šemík Member of the Board of Directors, SK Dragos Ionut Constantinescu Chairman of the Board of Directors, Martin Grygařík Vice-Chairman of the Board of Directors, Paolo Alberto Francesco Lanzarotti Member of the Board of Directors, Pavlína Kalousová Member of the Board of Directors, Adam Legerský Member of the Board of Directors, SUPERVISORY BOARD CZ (as of 31 December 2023)* Andrew David Bailey Chairman of the Supervisory Board, Petra Nadr Member of the Supervisory Board, Václav Šimek Member of the Supervisory Board, SK Miroslava Tůmová Chairwoman of the Supervisory Board, Mária Jurašeková Member of the Supervisory Board, Agáta Feldmanová Member of the Supervisory Board * On 30 September 2023, Karina Přibylová resigned from the position of Vice-Chairwoman of the Board of Directors in the Czech Republic. Adam Legerský became the new Vice-Chairman of the Board of Directors in the Czech Republic. The change was entered in the Commercial Register on 31 October 2023. As of 11 December 2023, Tomáš Krčil resigned from his position of Supervisory Board Member in the Czech Republic and Slovakia. Petra Nádr became new Supervisory Board Member in the Czech Republic, taking up the function on 1 December 2023, and Miroslava Tůmová became new Supervisory Board Member in Slovakia, taking up the function on 12 December 2023. Francesca Bandelli Pavlína Kalousová Martin Grygarik BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 20 21 Pilsner Urquell Pilsner Urquell Gambrinus Unpasteurised 10° Unpasteurised 11° Unpasteurised 12° Unfiltered lager Original 10° Patron 12° Dry Velkopopovický Kozel Non-alcoholic Kozel Kozel 11 Kozel 10 Kozel Černý Kozel Black-and-Tan 11 Radegast Vigorous 10 Purely Bitter 12 Ratar ROG IPA Dark Bitter 12 Extra Bitter 15 Birell Ale Semi-dark Dry hopped IPA-style Pomelo & Grapefruit Semi-Dark Lemon Raspberry & Lime Lemon & Mint Sour Cherry & Blackberry Blueberry & Cranberry Mango & Lemon Tangerine & Yuzu Apple & Plum Pear & Quince * Czech Republic only ** Slovakia only Portfolio of Plzeňský Prazdroj 2023 PROUD* Ventill TheMže Proovan Veer Cotel Soutock Yuzu Pale Ale Frisco* Apple cider Forest fruits Cranberry Fiztonic with tonic flavour Spritz Mojito Strawberry Daiquiri Bellini Classic* Classic Primus* Primus Excellent* Excellent Peroni Peroni Nastro Azzurro Peroni Nastro Azzurro 0.0 % Asahi Asahi Super Dry Šariš** Šariš Sparkling 10 % Šariš Bright 12 % Šariš Stout 12 % Šariš IPA Thirsty Monk** Thirsty Monk Captain Jack** Original Jack on the Beach Blue Lagoon Mango Sunrise Exotic Daiquiri Mojito BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 22 23 millingandmixingwithwater mashing malt grain crusher water wortlautering wort hop boiling hopshopped wort wortcoolingand fermentation whirlpool tun yeastculture air main fer- mentation additional fermentation and maturation bottlingFiltration SHIPPING How we brew our beers What is needed to make real Czech lager 9.1 1.2 million hectolitres of beer were brewed in the Czech Republic million hectolitres of beer were brewed in Slovakia BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 24 25 million hectolitres of beer were sold in the Czech Republic 7.36 Results in 2023 CZECH REPUBLIC Thanks to the intensive efforts of all employees and partners, Plzeňský Prazdroj has successfully overcome the challenges in 2023 of high inflation and rising energy prices. We managed to slightly increase sales on the domestic market, both in shops and in pubs and restaurants. In 2023, we sold in total 7.36 million hectolitres of beer and cider, which is 1.2% more than in 2022. The brewery's success is mainly due to the sustained support given to pub staff, the care of the beer and its tapping, together with the long-term growth in popularity of lagers and non-alcoholic beers. Sales of Prazdroj products with on-site consumption increased by 1.1% last year. More than a third of its total production was consumed in pubs and restaurants. Sales of tank beer showed the biggest growth, of 3.5%. Non-alcoholic beverages, specifically tap Birell, were also successful, with 17% growth. Prazdroj sales in shop increased by 1.3%. Last year's results also confirmed the long-term inclination of consumers towards lagers. The entire category of these beers at Prazdroj grew by 3% year-on-year. of the total beer production was enjoyed in Czech pubs and restaurants 1/3 million hectolitres were sold in Slovakia 1.7 SLOVAKIA 1.7 million hectolitres of beer were sold in Slovakia, which is 1.3% more than in 2022. The company has also become a leader in the beer market. The success is mainly due to a series of strategic decisions, with the breakthrough point being the achievement of leadership in the packaged beer segment. The favourable summer and autumn season and the more than 200 successfully implemented events across Slovakia contributed to the positive balance of 2023 in Slovakia. The trend of seasonality, which was particularly evident in tap beer, gained importance and led to a record number of seasonal establishments with which Prazdroj cooperated in 2023. In Slovakia, Prazdroj also focused on quality development and support of the HoReCa segment and launched a programme called Akadémia Prvý pri zdroji [First at Source Academy]. Compared to previous years, tap beers were again successful, but the interest of Slovaks in premium brands and lagers persisted. The Gambrinus brand excelled in the Slovak portfolio with a  16% increase in total volumes, and another significant increase of 7.5% was recorded by Radegast. The new recipe of the award-winning Šariš brand, the best novelty of the year in the Slovak Beer Crown competition, resonated among consumers. Šariš tap beer grew by 3.5% , including outside its home region. Pilsner Urquell also did well, with Slovak consumers enjoying 3% more of it than in the previous year. Birell tap beer saw the same increase. PLZEŇSKÝ PRAZDROJ IS A MAJOR TAX PAYER Plzeňský Prazdroj paid CZK 6.2 billion in taxes in the Czech Republic, of which CZK 2.2 billion was excise. Plzeňský Prazdroj Slovakia paid EUR 52.7 million in taxes, of which EUR 22.8 million was excise. STRUCTURE OF OUR TAXES ASAHI TAX CODE The purpose of Asa- hi's Tax Code is to ensure proper tax management with regard to tax administration and tax transparency while balancing the interests of various stake- holders. ASAHI GROUP'S TAX CODE OF CONDUCT ANNUAL REPORT OF PLZEŇSKÝ PRAZDROJ, A. S. ANNUAL REPORT OF PLZEŇSKÝ PRAZDROJ SLOVENSKO, A. S. percent is the increase for Šariš tap beer 3.5 EXCISE CORPORATE INCOME TAX VALUE ADDED TAX REAL ESTATE PROPERTYTAX ENERGYTAXES OTHER (road tax and withholding taxes) BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 26 27 Awards In 2023, Plzeňský Prazdroj succeeded not only brewing, but also in the areas of sustainability, employee care and communication. We won three gold awards in the TOP Responsible Company for Sustainability competition. In the Large Company category, we were awarded for our systematic approach to a sustainable corporate strategy, including a 49% reduction in greenhouse gas emissions (since 2019). We have achieved this by switching to renewable heat sources and other technological innovations such as solar panels and modern bottling lines. The FOR HOPS project brought us the title of TOP Responsible Company in Innovation for promoting efficient irrigation of hop fields. The Blossom for Hops project was awarded in the TOP Responsible Company in the Environment category for regenerative agricultural practices in hop gardens. Sustainability Report 2022 was awarded second place in the TOP Responsible Company in the Reporting category for its detailed documentation of our responsible business efforts. The FOR HOPS project became the ESG project of the year in the Sustainability Ranking of the Ekonom weekly, awarded in cooperation with the Industry and Transport Confederation of the Czech Republic. In the Plzen region, we again won the Sodexo Employer of the Year competition. We won this prestigious title for the fourth time in a row. The competition is organised by the Employers' Club and judged by PricewaterhouseCoopers on the basis of strict criteria such as remuneration, turnover, training, career development and commitment to sustainability. We also won bronze in the TOP Employer of the Year survey in the Consumer Industry category. These achievements reflect our growing popularity among students and graduates, who appreciate our stability, friendly working environment and work-life balance. Plzeňský Prazdroj won the top award in the Corporate Reputation category at the World Public Relations & Communication Awards 2023 in Chennai, India, for its communication campaign for the Smart Taproom project. A jury of 25 experts from leading PR agencies and academic institutions from all over the world evaluated our communication as the best in a strong international competition. With the same project we succeeded in the Lemur 2023 competition, which focuses on marketing, PR and communications, where the Smart Taproom concept won first place in the Services category. We also won silver in the Services category with our Pub from Top and from Bottom project and twice bronze for Corporate and Crisis Communication and Sustainability Report. Smart Taproom also won two bronze awards in the Zlatý středník competition and our Sustainability Report took bronze in the Fenix Content Marketing Awards. We won four prizes in the Effie Awards competition. The Gambrinus campaign won the silver award for the Together and with Perspective project in the Beverages category and the bronze award for Long-term Brand Building. Our campaign for the Smart Taproom project was also awarded two silvers in the PR and Small Budget categories. At the European Beer Star competition, we won the Future Award with Radegast Vigorous 10, which in addition to the quality of the beer also recognises the brand's activities in the field of sustainability. Radegast was awarded it mainly for its activities in the area of water retention in the landscape. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 28 29 Our commercial brewers are involved in not only care of tapsters and their skills but also overall "beer" education of the public. They use social media to spread everything our consumers need to know about well tapped beer. Their efforts pay back, as is evidenced by the increased quality of service in restaurants, the growing media interest in presentations on the theme of quality of beer tapping, and the professional awards they receive. The Brewers in Action account won 3rd place in the Social Media – Instagram category at the 10th annual Fenix Content Marketing Awards and the same place in the IMC Czech Awards. Company Ethics We support the principles of responsible marketing of alcohol products and thus follow our own binding principles of self-regulation defined in our Code of Commercial Communication. We believe that our company's reputation is a decisive factor in its success. In order to maintain our reputation, we have established a Business Ethics Policy that is binding not only for all employees, but also for support staff, contractors, suppliers and consultants. Focus on Quality RISK MANAGEMENT AND ASSESSMENT The overall objectives of the company are defined in the Integrated Corporate Policy (IMS Policy). It is directly related to the integrated management system including the principles of the following systems: quality management system - ISO 9001, environmental management system - ISO 14001, food safety management system - ISO 22000, GMP+, occupational health and safety system - ISO 45001 and energy management system - ISO 50001, for which a new certificate was issued in 2023 for the period 2023-2026. The area of environmental and safety systems management is in accordance with ISO standards and falls under the system management of the Chief Brewer of Plzeňský Prazdroj. THE COMPANY'S INTEGRATED MANAGEMENT SYSTEM CONTINUES TO BE VERIFIED BY AN INDEPENDENT INTERNATIONAL AUTHORITY IN ACCORDANCE WITH THE REQUIREMENTS OF INTERNATIONAL ISO STANDARDS. The company's management system complies with the most stringent European Union standards for food safety (FSMS - HACCP) and pollution prevention (IPPC). Responsibility and Suppliers We pay great attention to the selection of reliable suppliers. We use Supplier Risk Assessment accreditation, which includes ESG criteria. The accreditation is valid for two years. During that period our suppliers are bound to abide by the Asahi Business Ethics Policy for Suppliers and the Asahi Anti-Corruption Guidelines for Suppliers. ALL THESE DOCUMENTS ARE PUBLISHED AND ACCESSIBLE ON THE COMPANY WEBSITE. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 30 31 We identify binding requirements in the area of environmental and safety systems for each stakeholder. Procedures to identify environmental aspects of products, as well as processes and activities, are recorded in the Risk and Opportunity Register. This provides an overview of which risks need to be addressed as a priority. In the case of the Proud mini brewery, a separate, simplified IMS policy was created due to the nature of its operations. The IMS policy is communicated to all employees of the company, who communicate it in an appropriate manner to their partners, suppliers, customers and other stake- holders. The external context allows us to understand stakeholder expectations and requirements. The internal context is focused on achieving the ability to consistently provide products and services that meet customer and legal and regulatory requirements, including other accepted requirements. It also ensures activity and process efficien- cy. The company regularly prepares investment plans. Most of its investments go into modernising technology, improving product quality, workplace safety and environmental friendliness. EACH OF OUR NEW PRODUCTS UNDERGOES A DETAILED DUE DILIGENCE ASSESSMENT BEFORE LAUNCH, WHICH ALSO TAKES INTO ACCOUNT SUSTAINABILITY CRITERIA. THUS, THE ASSESSMENT COVERS NOT ONLY DOMESTIC AND EUROPEAN LEGAL ASPECTS, BUT ALSO ENERGY AND WATER CONSUMPTION, THE AMOUNT OF WASTE PRODUCED AND THE ENVIRONMENTAL IMPACT OF THE PRODUCT. We strive to increase efficiency, monitor quality, simplify and secure processes in our operations and engage employees and customers. To do all this, we are assisted by the automation and digitalisation projects we have implemented. But digitalization is also useful outside our breweries. In the FOR HOPS project, for example, we are able to help hop growers manage water efficiently and cope with climate change thanks to the use of state-of-the-art technology, sensors and smart meteorological stations. Our online training courses help pub owners to promote their services and attract new guests. WE ARE IN DIALOGUE WITH ALL OUR STAKEHOLDERS WE FIRMLY BELIEVE THAT SATISFIED PARTNERS CONTRIBUTE TO COMPANY SUCCESS AND SUSTAINABILITY. We are therefore in continual dialogue with all stakeholders and strive to ensure that our activities and approach to business lead to their satisfaction and improve their own results. IN 2024, WE ARE PLANNING TO CONDUCT A DOUBLE MATERIALITY ANALYSIS IN ACCORDANCE WITH ESRS EUROPEAN STANDARDS FOR REPORTING SUSTAINABILITY INFORMATION AND IN LINE WITH THE CSRD SUSTAINABILITY REPORTING DIRECTIVE. WE WILL WORK TO IDENTIFY AND EVALUATE KEY FINANCIAL AND NON-FINANCIAL ASPECTS THAT ARE IMPORTANT TO OUR COMPANY AND OUR STAKEHOLDERS. In the Czech Republic, we are a member of the Czech Association of Breweries and Malthouses, the Food Chamber and the Industry and Transport Confederation. We are also active, for example, in the Advertising Council and the Business for Society association. In Slovakia, we discuss common topics, e.g. in the Slovak Food Chamber, and we are an active member of the Slovak Beer and Malt Producers Association, the Advertising Council and the Business Leaders Forum. Dialogues with stakeholders allow us to identify topics that have a direct impact on our company and areas that in turn we directly influence. The materiality matrix, in which we have ranked the topics, helps us keep track of the key areas of our sustainability strategy. The matrix was one of the key inputs in the strategy’s preparation. In 2020, we therefore significantly strengthened our sustainability ambitions and adopted the For the Future! 2030 strategy to fulfill during this decade. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 32 33 STAKEHOLDER DIALOGUE TOPICS AND CHAPTERS Employees and Trade Unions feedback, regular evaluation, education and training, satisfaction survey, internal communication Strategy, People, Responsibility Customers and Consumers surveys, education, awareness in responsible consumption and sustainability People, Behind the Gates of Breweries, Communities, Responsibility, About Us Suppliers ethics, transparency and sustainability in suppliers, collaboration on projects Strategy, Carbon Neutrality, Behind the Gates of Breweries, Ingredients, Packaging, About Us, Water Education and Research Institutions lectures, conferences, events at universities, consultations of professional theses, professional consultancy, applied research and development Carbon Neutrality, Ingredients, Packaging, People, Water, Responsibility Non-Profit Organizations expert consultations, cooperation on projects, support for activities Ingredients, People, Responsibility, Communities Associations and Unions round tables, conferences, interest and professional groups About Us, Ingredients, Packaging, Responsibility, People, Communities Regional and Local Partners discussions, cooperation in preserving cultural heritage, maintaining tradition, support for tourism Communities, Responsibility EU, Government, Legislators auditing and reporting, round tables, dialogue through interest associations About Us, Strategy, People, Responsibility, Standards Media press releases and media events Insight into the topics of brewing, food processing, agriculture and catering BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 34 35 IMPACT ON THE SOCIETY IMPORTANCEFORPARTNERS low low medium medium high high MATERIALITY MATRIX PLZEŇSKÝ PRAZDROJ SLOVAKIA Mitigating impacts and adaptation to climate change Responsible marketing Lack of support for beer ingredient growers and rapidly changing legislation Promotion of tourism and small entrepreneurs Regulation of the protection zone in the town of Veľký Šariš Indication of the nutritional value of products Lack of sustainability of the HoReCa segment Responsible alcohol consumption Employee health and safety Packaging policy and the circular economy Shortage of staff in the HoReCa segment Ageing workforce and diversity Declining number of customers Production and quality of raw materials Talent development Ageing farmers Transparency Drought and the need for protection of water resources Significant regulation of the business environment In 1842, Josef Groll, Bavarian brewer, brewed the world's first batch of bottomfermented lager in Pilsen. He used soft Plzen water, local malt and Žatec hops. His recipe inspired breweries in many other countries and gave birth to a new beer – Plzen-type beer. Plzen is one of the few cities in the world whose name has also become the name of a beer type. Thankstothis , the globe is full of patri o ts whowillnotletPlze n beerdown. IMPACT ON SOCIETY IMPORTANCEFORSTAKEHOLDERS low low medium medium high high MATERIALITY MATRIX OF PLZEŇSKÝ PRAZDROJ Water protection and water shortage Circular economy Satisfaction and stability of staff Sustainable logistics Responsible alcohol consumption Support for vocational schools and social enterprises Age diversity and protection of 50+employees Support for Czech beer culture Responsible recycling Investing in communities Ensuring a safe working environment Focus on family and gender diversity Promoting sustainable agriculture Climate change mitigation Relations with local communities and regions Focus on a socially strong theme within the sustainable development strategy Promotion of local traditions Long-term developed responsible strategy Innovative packaging solutions Education of young consumers in responsible drinking BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 36 StrategyEVERY SIP OF OUR BEER BRINGS WITH IT NOT ONLY A TASTE EXPERIENCE, BUT ALSO A COMMITMENT TO THE PLANET AND SOCIETY. TO PRESERVE THE BREWING TRADITION FOR FUTURE GENERATIONS, WE STRIVE TO THINK LONG-TERM WITH AN EMPHASIS ON SUSTAINABILITY IN ALL AREAS OF OUR OPERATIONS, FROM PRODUCTION VIA DISTRIBUTION TO CONSUMPTION. II IT'S BECAUSE WE TRY TO TAKE CARE OF THE NATURAL RESOURCES WITHOUT W HICH W E CO ULDN'T BREW O UR BEE R. Every sip reflects not only tradition, history and human stories, but also the spirit of the landsc a pe. BACK TO CONTENTS ↑↑ 38 39 CARBON NEUTRALITY All electricity for our breweries will come from renewable sources. water We will reduce the average water consumption required to produce 1 L of beer to 2.75 L. WASTE No waste from our breweries will end up in landfill. CARBON NEUTRALITY Our breweries will be carbon neutral. We will reduce the carbon footprint of our supply and demand chain by 30%. water Water for our breweries will only come from sustainable sources. INGREDIENTS All agricultural ingredients used to make our beer will come from sustainable sources. Packaging All of our product packaging will be reusable or recyclable and at least half made from recycled materials. We will end the use of single-use plastics made from virgin material. DIVERSITY We will achieve a balanced proportion of men and women in leadership positions. ACCOUNTABILITY Soft drinks will account for 25% of our portfolio. CARBON NEUTRALITY Our carbon footprint will be zero across the entire supply-anddemand chain. 38 Strategy Pillars 38 STRATEGY PILLARS 39 OUR COMMITMENTS 40 WHAT HAPPENED IN 2023 44 YEAR 2023 IN NUMBERS 46 STRATEGY MANAGEMENT AND IMPLEMENTATION 48 OUR MISSION With full respect for the gifts of nature, which no great-tasting beer can do without, we emphasize innovation and sustainability in our business and careful observance of our commitments that are firmly linked to the Asahi Europe & International Group's 2020 Sustainability Strategy. The strategy, based on the three ESG (Environmental, Social, Governance) pillar, is our compass to guide us in matters of environmental protection, social responsibility and good corporate governance. We are also a member of the global RE100 initiative focused on renewable energy use and we have committed to achieving the objectives of the Science Based Targets standard aimed at preventing the plant warming rate to exceed 1.5 °C/year. Our climate aims for 2030 were validated by the Science Based Targets Initiative. We also support the UN Sustainable Development Goals (SDGs) adopted at the September 2015 summit. Learn more about the Asahi Group's approach to sustainability and environmental principles. ENVIRONMENTAL PRINCIPLES AND VISION SUSTAINABILITY AT THE ASAHI GROUP Carbon Water Ingredients Packaging Waste Diversity Responsibility Neutrality Circularity Our Commitments in the Area of Sustainability 2025 2030 2050 BACK TO CONTENTS ↑↑ 40 41 What happened in 2023 The FOR BARLEY project has achieved ITS first results ← Following two years of data collection in the hop fields we have built an extensive database on the needs of plants and the effect of weather on their growth.Thanks to this, we can help growers to cope with the negative effects of climate change. At the end of the year, we completed works on a predictive model that will allow them to forecast hop yield and quality, and now we are developing a mobile app to help them plan irrigation efficiently. Already the pilot project carried out at the Chrášt'any hop garden was a success, when a change in irrigation tactics increased yields by up to 40 %. Smart taproom project and more efficient coolers ← Restaurants and pubs have long struggled with high energy prices, with the biggest energy burden on tap beer being the cooling systems. Therefore, for the first time in the history of brewing, after having measured the actual consumption of different sizes and types of coolers, we are looking for a way to reduce the energy and water consumption of the taproom through modifications. Full PACKAGING Circularity in Slovakia ↑ Thanks to the returnable packaging system, we managed to increase the share of recycled aluminium in the body of all new cans in Slovakia to three-quarters last year. Now we are able to transform all collected cans into new ones. This means that we have fully circular packaging 7 years earlier than originally planned. By producing cans from recycled material in a much less energy-intensive way, we have reduced their carbon footprint by 49% and saved 512 tonnes of new aluminium per year. Photovoltaics on the way to zero emissions ↑ The deployment of photovoltaics in the manufacturing process is another step towards carbon neutrality. We have therefore launched an extensive programme of installing solar panels on the roofs of the breweries' production buildings. We have launched the first solar power plant in Velká Popovice and other breweries will follow. By using solar energy, we will reduce our CO2 emissions by nearly 500 tonnes a year. Saving Malting Barley → We have teamed up with scientists to help save malting barley, the basic ingredient in Czech beer. We have launched the FOR BARLEY research project and started using modern technologies and regenerative farming practices in fields in three locations. The project should help increase the resilience of barley to climate change and stabilise harvests. We fight stereotypes connected with non-alcoholic beverage drinking → The results of our survey show that nearly 50 % of the population have encountered social pressure making them drink. That is why we are actively engaged in combating stereotypical behaviour towards those who prefer non-alcoholic variants of adult beverages. In our new non-alcoholic Birell beer campaign, we stress that fun is not dependent on alcohol consumption and can be enjoyed without it. Blossom for Hops ← We support our suppliers. We have launched a five-year research project, Blossom for Hops, which is about a regenerative approach to hop growing and is unparalleled in Europe in its scope and focus. Planting flowers and other plants between hop rows helps improve soil fertility and preserve the quality of Czech hops.   BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 42 43 Šariš Brewery Ends Landfilling ↑ One of our strategic goals is to ensure that by 2025 no waste from breweries ends in landfills, and all waste is reused, recycled or used for energy generation. Thanks to the gradual modernization, the friendly approach of the employees and the well-set system of waste management, the brewery in Velký Šariš already achieved this in 2023. Fair Remuneration System ↑We are proud holders of the prestigious international Equal Salary certificate, which places us among the top 150 companies in the world in terms of fair remuneration system. Our gender pay gap is less than 5% and we actively promote diversity and opportunities for women in society, including initiatives to help women balance motherhood and career. The only glass bottle sorting line of its kind in the Czech Republic ↑The first automatic sorting line for returnable glass bottles in the Czech Republic, which simplifies manual work and increases the reliability of bottle sorting, has been launched. The 12-arm robot can sort up to 81,000 bottles per hour, including damaged bottles and crates, contributing to a circular economy and reducing the environmental impact. The investment of nearly CZK 50 million in this technology emphasizes our commitment to sustainable packaging. Million crowns to build PONDS across the Czech Republic ←At Radegast, we have long been dedicated to reducing water consumption in the Nošovice brewery. The brewery consumes 2.29 L of water for production of one litre of beer, which makes it the absolute top globally in this respect. At the same time, we also support a number of projects contributing to water retention in the countryside. In 2023, we joined forces with the Czech Forest Management and supported construction or restoration of 29 ponds in eight locations, which help retain water in the landscape, with an investment of a million Czech crowns. ← photo: Červenka pond / Forest Management of the Czech Republic Šariš Brewery switches to 100% renewable energy →Startingin2025,theŠarišBreweryplanstomakefulluseof renewable sources, which includes beer production using solar energy. The new solar park in Iliašovce will cover 92% of the brewery's consumption and thus reduce its carbon footprint by almost a fifth. At the end of the year, the brewery entered into a unique 10-year virtual energy purchase agreement, the first of its kind in Slovakia. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 44 45 total emission reduction across the entire value chain since 2019 19 % scope 1, 2 emission reduction in production since 2019 48 % 29 that many new ponds have been made in forests thanks to Radegast's cooperation with Forest Management of the Czech Republic 2.8 | average water consumption per litre of beer produced 2.29| average water consumption per litre of beer produced in Radegast brewery reduction of emissions related to our Slovak cans thanks to the returnable packaging system and their cycle closing 49 % volume of dumped waste from the brewery at Velký Šariš in Slovakia is the percentage of women on the company board 35 % share of recycled content in Pilsner Urquell cans and in the entire can portfolio in Slovakia 75 % 14 % in Slovakia share of non-alcoholic products in the product portfolio 12 % in the Czech Republic Year 2023 in numbers in the Czech Republic 69 % proportion of beer sold in returnable package in Slovakia 58 % ALCOHOL BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 46 47 Our cooperation with communities and customers is equally important for us. All of these achievements move us closer to achieving our ambitious sustainability goals set for the period to 2030. STEERING COMMITTEE CEO + directors of functions 2 DIRECTOR FOR CORPORATE RELATIONS AND COMMUNICATIONS DIRECTOR FOR SUSTAINABILITY and Integrated Projects + Sustainability Manager, Integrated Project Manager 3 SUSTAINABILITY TEAM strategic pillar leaders (Corporate Relations, Marketing, Purchasing, Innovation, Production, Ingredients, Logistics and Planning, Human Resources, Risk Management) 4 1 Sustainability Strategy Management Sustainability is an integral part of our long-term corporate strategy and a daily reality of our business. We focus on several key areas, including achievement of carbon neutrality, reduction of water consumption, taking care of our ingredients and our suppliers, reuse of packaging, expansion of our non-alcoholic beverage portfolio and promotion of diversity. S-EBITA - financial indicator for sustainability S-EBITA, our own financial indicator, works like traditional EBITA, except that it also takes into account the sustainability of our activities. We deduct the costs associated with the environmental impact of our business from our economic earnings. This indicator helps us understand how our earnings could be affected in the future by our obligation to financially offset these impacts. Specifically, we measure CO2 emissions in Scope 1 and 2, CO2 emissions in Scope 3 for our packaging and beer cooling in stores, and the amount of plastic from virgin materials used in production. We will be adding more areas in the future. S-EBITA is an important investment planning tool helping us to shorten the payback period for projects with a positive impact on our carbon footprint. As part of strategic decision-making, it is also taken into account in the evaluations by the company's top management and Board of Directors. Achievement of S-EBITA targets accounts for 30% of top management's long-term financial incentives. Strategy Implementation Last year, we saw a significant shift in our strategic goals for 2030. We are happy to say that we have even met some of them ahead of plan. In the area of carbon neutrality, we have invested in modernising our production technologies, installed photovoltaics and optimised our logistics processes. This has helped us reduce our carbon footprint in production by 4.6% year-on-year and achieve better energy efficiency in our breweries. We have set specific targets for each of these areas and are constantly monitoring and evaluating their implementation. Achievement of the sustainability strategy key performance indicators is also taken into account in the evaluation by the company's top management and Board of Directors. Directors of different functions are responsible for meeting strategic objectives and each department has a sustainability representative on its team. The consistency of the strategy is overseen by a Steering Committee comprising members of the company's senior management, which sets targets and monitors their achievement on a quarterly basis. The Steering Committee also discusses and evaluates the Company's register of risks twice a year, including measures to avoid or minimise their potential impact. The risk management process is controlled by the Internal Audit Department. In the long term, we have been successful in meeting the planned water and energy consumption targets for the entire group of breweries and malt houses in the Czech Republic and Slovakia. In Slovakia, we have achieved zero landfill, and are already able to reuse all the waste from the brewery. We have also enjoyed significant success in the area of recycling, where we have managed to achieve full circularity of packaging at the Šariš brewery 7 years earlier than originally planned. The brewery has also started its transition to renewable energy sources and from 2025 on will only use electricity generated from the sun. Responsibility for our products does not end at the brewery gates. On our sustainability journey, we also think about the suppliers of our ingredients. Thanks to intensive cooperation with them, we have made significant progress in implementing sustainable agricultural practices in the form of joint research projects aimed at improving soil fertility and conditions for Czech hops and barley growing. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 48 49 Our Mission Our mission helps us define our strategic choices and stay on track in business, growth and in building a broader role in society. Our mission, expressed as Creating relationships that make sense, is built on what's closest to our industry - connecting people and building community. Together, we can change things for the better in favour of society and the planet. We create relationships that make sense We want to PIONEER POSITIVE IMPACT ON THE PLANET IN EVERYTHING WE DO We strive for zero negative impact on the environment and actively contribute to healing our planet through our brands, partnerships and initiatives. We want to BRING POSITIVE AND INCLUSIVE EXPERIENCES TO PEOPLE AND SOCIETY We will do what we are best at, which is to bring people together and build their community. We want to promote tolerance and open, inclusive experiences. We will reshape the image of beer and help make moderate alcohol consumption a trend. The term strategy, derived from the Greek strategos, originally only applied to the military sphere. Because it deals primarily with the interrelationship between available means and ends, the term now has a much broader meaning. A sustainable business cannot do without a good strategy, and even good beer cannot be brewed without a clear idea of how to transform the input ingredients into the desired outcome. We have be en w inningtheseimporta ntbattlesinourbrew eri es so far. In order for these relationships to work well, a solid in-house base is needed. Our teams include specialists who lead us towards continuous improvement and integration of sustainable practices in all of our operations from manufacturing to distribution. This way we motivate our employees to actively engage in and identify with our goal of making a positive impact on the environment and society. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 50 Behind the gates of breweries OUR BREWERIES ARE PLACES WHERE RAW MATERIALS, WATER, ENERGY AND A LOT OF HUMAN SKILL FLOW IN AND ARE TURNED INTO BEER. WE ARE WORKING HARD TO MAKE THIS WHOLE CYCLE RUN WITH AS LITTLE ENVIRONMENTAL IMPACT AS POSSIBLE. IIIit won't work without partners.some challenges can only be fac e d to g ether. BACK TO CONTENTS ↑↑ 52 VALUE CHAIN 56 OVERVIEW OF PRODUCTION INPUTS 58 OUR SUPPLIERS 59 DISTRIBUTION 60 OUR CUSTOMERS Our business builds on agricultural ingredients and other inputs that we use to produce first-class beers and other products. In addition to suppliers of barley, hops and other ingredients, our value chain also includes a number of other suppliers, primarily in the Czech Republic and Slo- vakia. We distribute most of our products ourselves to retail and food service customers. They then offer them to end consumers. In addition to the Czech Republic and Slovakia, we export our products to 42 countries worldwide. In terms of our carbon footprint, the most important activities include cultivation and processing of the ingredients, especially malt barley, the actual production in our breweries, packaging materials, logistics and the cooling of our products at our customers. We have set targets to manage our environmental impact across the value chain and we also look across selected segments for ways to help partners manage the risks associated with the impact of climate change on their business. In particular, we focus on barley growers (FOR BARLEY project), hop growers (FOR HOPS and Blossom for Hops) and customers in food service (Smart Taproom). Details of the individual projects can be found in the Water and Raw Materials chapters. CZ 22,005 SK 6,158 NUMBER OF PUBS AND RESTAURANTS offering our products (as of 31 December 2023) 5352 BACK TO CONTENTS ↑↑ VALUE CHAIN agriculture andrawmaterials water andenergy productioninputs packaging wholesale retail food service exports side products Logistics salessupport services PRAZDROJ retail food service The overview shows where material impacts or sustainability-related risks occur in our value chain. In the coming period, we also plan to map other levels of our value chain, including the most important inputs from our suppliers. 54 55 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ Overview of the most important inputs Beer ingredients Most of the basic ingredients for the production of beer and other products in our portfolio are of agricultural product nature. The most important one is malt barley, but another no less important ingredient for beer production is hops, despite the significantly smaller volumes purchased. BARLEY MALT Water and energy We need energy and water to brew beer, cool it, package it and perform other technological steps in the individual stages of the production process. Roughly a quarter of the total energy consumed is represented by electricity, with the remainder coming from heat sources, which often vary between breweries, with natural gas and biomass predominating. For details, see the Water and Carbon Neutrality chapters. HOPS SUGAR Production inputs Other inputs to production include, in particular, silica for filters, cleaning and disinfecting agents and CO2 used in the packaging of finished products. We produce most of our own technical CO2 by capturing CO2 in tanks from fermentation processes. DIATOMITE CLEANING AGENTS Logistics Our logistic processes cover transportation of raw materials, packaging materials and other inputs into the production and distribution of our products to end customers, including exports to more than 50 countries. Logistic operations include transport as well as the renting and operation of distribution centres in the Czech Republic and Slovakia. For more information, see the Carbon Neutrality chapter. TRANSPORTATION SERVICES WAREHOUSE RENTALS TRUCKS CARS Packaging Packaging materials for packaging inputs and finished products. These include primary and secondary packaging as well as transport packaging for product transport on pallets to customers. See the Packaging chapter for details. CANS GLASS BOTTLES BARRELS CRATES PALLETS LABELS CROWN CAPS PLASTIC FOILS CARDBOARD INK ADHESIVES Sales support Technological equipment for pubs and restaurants, refrigerators at retail customers and other customer support materials, especially within the food service segment. Details in the Communities chapter. TAPPING TECHNOLOGY REFRIGERATORS PUB EQUIPMENT POS MATERIALS Services IT services, marketing, legal, financial, consulting and other business support services. MARKETING SERVICES IT LEGAL SERVICES CONSULTATION FRUIT COMPONENTS MAIZE WATER ELECTRICITY HEAT COLD GAS OTHER FUELS CO2 56 57 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ WHERE OUR SUPPLIERS COME FROM SK DISTRIBUTION OF PRODUCTS TO CUSTOMERS velké popovice plzeň nošovice 4 VEĽKÝ Šariš Direct distribution Primary distribution Secondary distribution Distribution of tank beer Food service establishments Retail outlets Wholesale Logistics centres of retail chains 11cz Regional logistics centres 5SK We only make direct purchases in European Union countries and use local suppliers from the Czech Republic and Slovakia as much as possible. The overview includes all raw materials required for the production of our products, including production inputs and all packaging materials. In the coming period, we will also supplement the overview with indirect purchases, which mainly include purchased services and energy. Even in these categories we mainly cooperate with local suppliers or with partners from EU countries where necessary. We distribute our products across the Czech Republic and Slovakia directly from breweries or through our own network of distribution centres. We have eleven in the Czech Republic and five in Slovakia. From there, they then go to our customers, whether retail or wholesale. We always ship tank beer directly from the brewery. CZ Czech Republic 84 % European Union 16 % Rest of world 0% Slovakia 38 % European Union 62 % Rest of world 0% breweries 58 59 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ Albania Australia Belgium Bulgaria Czech Republic China Denmark Estonia Philippines Finland France Georgia Hong Kong Croatia Ireland Iceland Italy Israel Japan South Korea Canada Lithuania Latvia Hungary Mongolia Germany The Netherlands Norway Poland Austria Romania Greece Singapore Slovakia Slovenia Serbia Spain Sweden Switzerland Taiwan The Ukraine U.S.A. United Kingdom Vietnam 42WE EXPORT OUR PRODUCTS TO THIS MANY COUNTRIES AROUND THE WORLD Where we sell Pilsner Urquell was one of the first European beers which became popular in the U.S.A. The Pilsner brewery began exporting it here in 1873, just three decades after its establishment. The beer was transported across the ocean by ship in wooden barrels SEALED with wax stoppers, which were cooled with ice before loading. In New York alone PilsnerUrquellison tap in nearly500restaurant s 60 61 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 62   by 2030, all of our breweries will be carb o n neutral. Carbon Neutrality IV EVEN THOUGH ONLY 14% OF EMISSIONS COME DIRECTLY FROM OUR BREWERIES, OUR GOAL IS TO BRING THEM DOWN TO ZERO. ON THE WAY TO CARBON NEUTRALITY, WE MAINLY RELY ON RENEWABLE ENERGY SOURCES. WE ARE INSTALLING PHOTOVOLTAICS ON BREWERY ROOFS AND MORE AND MORE HEAT IS GENERATED FROM BIOMASS. BREWERIES ARE NOT THE FINAL STEP, WE ARE GRADUALLY LOWERING THE CARBON FOOTPRINT OF OUR ENTIRE VALUE CHAIN. it's getting a little warm in here, carbon emissions are to blame. BACK TO CONTENTS ↑↑ 64 OUR CARBON FOOTPRINT 66 PHOTOVOLTAICS 67 ON THE WAY TO RENEWABLES 69 TRANSPORT AND LOGISTICS 70 EMISSIONS OUR COMMITMENT FOR 2030 OUR BREWERIES WILL BE CARBON NEUTRAL. WE WILL REDUCE THE CARBON FOOTPRINT OF OUR VALUE CHAIN BY 30%. OUR CARBON FOOTPRINT More than 85% of the emissions associated with our products come from activities outside our breweries. These emissions are generated during barley and hops cultivation and processing, in the transport of ingredients to our breweries and in the distribution of finished products to our customers. They are also linked to the packaging we use and the cooling of beer in shops and pubs. REDUCING OUR CARBON FOOTPRINT Over the long term, we have succeeded in reducing the share of Scope 1 and Scope 2 production emissions. While in 2019, which we have set as the baseline for measuring emissions reductions, these emissions accounted for 21% of total CO2 emissions, in 2023 they only accounted for 14%. We have reduced total emissions across the entire value chain by 19% in the Czech Republic and Slovakia since 2019. We are guided by the Asahi Europe & International Group Sustainability Policy, which sets out the basic definitions, allocation of responsibilities, the ways to measure and calculate emissions, the methods of data verification as well as the areas we should focus on in reducing our carbon footprint. Our activities in the area of carbon footprint reduction are also guided by the Group's S-EBITA policy, which defines the internal carbon price, the areas included in the calculation of the economic result net of negative carbon externalities, and the way S-EBITA is used to evaluate the return on new investment projects with an impact on the overall carbon footprint of the company. The Sustainability Information Verification Rules set out the method of third-party verification and validation of data, the required standards and disclosure requirements for the company's carbon footprint, and carbon reduction activities. 86 %of our emissions come from activities outside our breweries For production emissions, our primary focus is now on a full transition to renewable electricity sources at all our breweries. A big issue here is heat sources, which now account for more than half of our manufacturing emissions. In this area we have already succeeded in switching to heat from biomass in the Plzen brewery, and we continue looking for emission-free heat sources for other breweries. For the future, we plan partial electrification and the use of heat pumps, with biogas from renewable sources being the likely future primary source of our heat. We also count on further streamlining of energy use in individual breweries. 21 %accounted for Scope 1 + 2 CO2 emissions in 2019 14 %accounted for Scope 1 + 2 CO2 emissions in 2023 19 %Reduction of total seed-to-glass emissions since 2019 48 %Scope 1 and Scope 2 production emissions reduction since 2019 Our efforts to reduce emissions along the entire value chain primarily focus on packaging, where, as a rule, increased circularity leads to a reduced carbon footprint. See the Packaging chapter for details. Another major area generating emissions is product cooling at our customers' premises, particularly in catering establishments. The Smart Taproom project, which we write about in the Water chapter, will reduce emissions in this area. In agriculture, we aim at reducing external inputs in crop production and promote regenerative agriculture, which we are testing through the FOR BARLEY and BLOSSOM FOR HOPS projects described in the Ingredients chapter. 6564 BACK TO CONTENTS ↑↑ PHOTOVOLTAICS IN BREWERIES Plzeňský Prazdroj is actively working on reducing its carbon footprint, which is also demonstrated by an extensive programme of solar panel installations on the roofs of its brewery buildings. The first solar power plant was launched at the Velké Popovice brewery, where the 288 panels installed on the roof of the wastewater treatment plant now cover approximately 12% of its consumption. In the near future, we plan to install another 466 panels on the bottling line, which will cover about 10% of its energy consumption. These measures are part of the company's goal to achieve carbon neutrality in production by 2030. Further photovoltaic installations are planned for the roofs of the Radegast brewery in Nošovice and the Plzen brewery. The plan is to install a total of 3,400 solar panels with a total area of 23,000 m². 288 solar panels form the first solar power plant in Velké Popovice 1,750 solar panels in Nošovice ANNUAL ELECTRICITY PRODUCTION FROM THESE PANELS WILL REACH ALMOST 1,600 MWH, COVERING 2.4% OF THE TOTAL ENERGY CONSUMPTION OF ALL DOMESTIC BREWERIES OF PRAZDROJ AND CUTTING UP TO 500 TONS OF CO2 EMISSIONS PER YEAR. The most significant deployment of photovoltaics will be implemented in Nošovice, where we will install 1,750 panels on the roof of the automated warehouse, which will cover all of the warehouse consumption and 36% of the can line consumption. The Plzen brewery plans to install more than a thousand panels on the roof of its new automated warehouse, which will cover more than 48% of its energy consumption. The commissioning of this warehouse reduced CO2 emissions by 500 tonnes in 2023, thanks to the reduction in the use of forklifts and the switch to electric drives. ON THE WAY TO RENEWABLES Due to spatial limitations, it is not possible to solely cover the consumption of all breweries from solar panels directly on the breweries' premises. The investment in solar energy is part of Plzeňský Prazdroj's  broader sustainability strategy, which includes purchasing green electricity from external suppliers and supporting the creation of new sources that could cover our consumption and contribute to greening the entire energy network. Heat is equally important. For example, in Plzen, we have been taking thermal energy generated by burning wood chips from Plzeňská teplárenská for two years now and thanks to this we have managed to reduce the emissions of the Pilsen brewery by 74%. IN 2023, WE STARTED TO BUY COOLING GENERATED BY RENEWABLE SOURCES FOR THE PLZEN MALT HOUSE, WHICH REDUCED OUR EMISSIONS BY AROUND 700 TONNES OF CO2 PER YEAR. 74 % Since 2019, we have managed to reduce emissions in the Plzen brewery and malthouse by These steps significantly contribute to reducing emissions and represent the key components of our plan to achieve a complete transition to renewable energy by 2025. Plzeňský Prazdroj is also working on reducing the energy intensity of production and logistics through measures such as residual heat recovery, more efficient insulation and lower energy consumption. By taking these steps, we want not only to reduce our carbon footprint, but also to contribute to sustainable development and environmental protection. (Scope 1 + 2). 66 67 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ Prazdroj is approaching another significant milestone in sustainability. From 2025, on the Šariš brewery will use emission-free electricity from renewable sources, which will primarily be taken from the newly built solar park in the nearby municipality of Iliašovce. The solar power plant will result from the cooperation between Plzeňský Prazdroj and Enery. Šariš Brewery's switch to renewable sources represents another step on our path to carbon neutrality in production, which we aim to achieve by 2030. Prazdroj will become the first company in Slovakia supporting construction of the new local solar power plant by its long-term commitment. The solar park in Iliašovce will be built in 2024, together with the brewery´s own solar power plant on its premises. ELECTRICITY IN THE ŠARIŠ BREWERY WILL COME 100% FROM RENEWABLE SOURCES The Šariš brewery will thus switch to production powered exclusively by renewable sources of electricity, cutting 1,386 tonnes of carbon dioxide emissions per year and reducing the overall carbon footprint of production by approximately 18%. The new solar park will be built thanks to the unique Virtual Power Purchase Agreement (VPPA) between Plzeňský Prazdroj and the Austrian company Enery, the first contract of this type in Slovakia. 1,386 tonnes TRANSPORT AND LOGISTIC MEASURES In 2023, we continued short-term testing of electric MB eSprinter vans and trucks from Volvo FL Electric in our distribution. In 2024, we plan to launch long-term testing of the Volvo FH 42T Electric truck, which should cut up to 64 tonnes of CO2 emissions per year. On the Plzeň-Nošovice route we use a  direct train line for transport, which helps cut up to 70 tonnes of CO2 emissions per year. 70 tonnes 8.8 hectares is the area covered by the new solar park, which will be the primary source of electricity for the Šariš brewery 68 69 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ CZ, SK EMISSION GENERATION IN OUR VALUE CHAIN IN 2023 AGRICULTURE AND INGREDIENTS Growing hops and barley, all farm works and other activities needed to ensure the harvest. 9 % / 30,475 t co2e Scope 3 PROCESSING OF RAW MATERIALS Germination, drying and further processing of malt in the malthouse. 5 % / 16,928 t co2e 62 % Scope 1, 2 / 38 % Scope 3 PRODUCTION IN BREWERIES Beer brewing, fermentation, maturation and bottling in the brewery. 18 % / 57,232 t co2e 63 % Scope 1, 2 / 37 % Scope 3 PACKAGING Bottles, cans, barrels and other packaging, including secondary packaging and packaging for transport on pallets. 28 % / 92,500 t co2e Scope 3 TRANSPORT AND LOGISTICS Transport of ingredients and packaging to breweries and transport of finished products to customers. 17 % / 53,622 t co2e Scope 3 COOLING Cooling our products in pubs and retail stores. 23 % / 74,655 t co2e Scope 3 9 % 5 % 18 % 28 % 17 % 23 % ENERGY CONSUMPTION AND CARBON FOOTPRINT IN PRODUCTION SCOPE 1, 2 Plzen: 2022 2.56 2023 2.66 Nošovice: 2022 4.41 2023 4.26 Velké Popovice: 2022 5.45 2023 4.60 Šariš: 2022 3.99 2023 3.53 PRODUCT-RELATED EMISSIONS(KG CO2e/HL) Plzen: 2022 85.67 2023 88.54 Nošovice: 2022 69.69 2023 69,19 Velké Popovice: 2022 84.08 2023 72.31 Šariš: 2022 72.66 2023 70.87 ENERGY CONSUMPTION (UOM/HL) The Plzen brewery experienced a temporary increase in energy consumption in 2023 due to the introduction of key technological innovations and automation, in particular the installation of a new multifunctional bottle line and a fully automated warehouse. We are also introducing new technologies to meet growing market demands, for example for smaller packaging types and returnable bottles. However, we are preparing optimizations for the coming period that will lead to future reductions in the brew- ery's energy consumption. Emissions from various forms of business travel associated with air, rail, sea and road transport are excluded from the summary as they represent less than 0.5% of total emissions. Advertising and marketing materials account for less than 1% of total emissions. They are therefore excluded on the basis of negligible emission magnitudes and data availability. Energy consumption associated with storage or distribution centres downstream of the primary distribution centre has not been included in the calculation due to data availability and the ability to influence the situation. These are mostly warehouses of our customers, especially in retail and wholesale. Capital estate related emissions are difficult to calculate and influence; estimates based on total capital expenditure quantify total emissions at less than 1% of company emissions. Capital expenditure has been removed from the system boundaries for reasons including materiality and the ability to influence it. It is very difficult to accurately determine emissions associated with transporting beer from stores to consumers. These were excluded on the basis of data availability and the ability to influence the situation. For the same reason, the system boundaries do not include beer cooling at the end consumers. For details see the Standards chapter.70 71 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 30.94 26.75 Explanatory notes: The calculation model was developed in accordance with the 2004 GHG Protocol Accounting and Reporting Standard and its Supplement and the 2011 GHG Protocol Corporate Value Chain Accounting and Reporting Standard. It also takes into account the 2019 version 4.1 of the BIER sectoral guidelines for greenhouse gas emissions in the beverage industry. The methodology also takes into account the European Commission's 2018 PEF product footprint categorisation rules for beer, the 2011 GHG Protocol's life cycle assessment accounting and reporting standards and the PAS 2050:2011 certification principles. The calculation method for value-chain-related emissions in Scope 3 category was developed and the calculation was prepared by Verco Advisory Services Ltd. The methodology was externally verified by LRQA Group Ltd. The system boundary includes all emission-producing activities that significantly contribute to the total greenhouse gas emissions related to beer across its entire life cycle. It covers all products produced in the Czech Republic and Slovakia, including exports, with the exception of volumes brewed under licence abroad, which were excluded on the basis of limited access to data and lack of ability to influence the sit- uation. Absolute figures also include business travel, which is not included in the survey and accounts for less than 0.5% of our total emissions. The calculation takes into account the six greenhouse gases covered by the Kyoto and Montreal Protocols: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulphur hexafluoride (SF6), fully fluorinated hydrocarbons (PFCs) and hydrofluorocarbons (HFCs). The total footprint is expressed as carbon dioxide equivalent (CO2e) using the global warming potential values provided by the IPCC (2007). Scope 1 Direct emissions associated with fuel combustion by fixed or mobile sources owned or controlled by the company, and emissions resulting from technological processes or refrigerant re- lease. Scope 2 Indirect emissions resulting from the consumption of purchased or externally supplied electricity or heat, process steam and cold air. Scope 3 Other indirect emissions originating in the value chain, e.g. emissions associated with the cultivation or processing of ingredients, transport of production inputs and finished products, packaging materials or use of the product by end users. ABSOLUTE EMISSIONS DIRECT AND INDIRECT(T CO2e) In 2023, we switched to a new Scope 3 calculation methodology where we calculate 100% of malting barley emissions directly from grower data. To integrate old data with data calculated by the new methodology, we have also recalculated our carbon footprint in the previous years 2019-2022. CZ SK 2019 62804 25943 2020 2021 2022 2023 total403,659 total405,562 total388,634 total365,046 total327,020 314912 60223 26664 318675 48467 26649 313518 21831 26864 316351 20582 25896 280542 SCOPE2 SCOPE3 CZ 283329 282439 276674 279212 total365,075 total361,800 total344,519 total320,308 61439 20307 58772 20589 47122 20633 20445 20651 19236 20021 249754 total289,011 2019 2020 2021 2022 2023 SK 2019 2020 2021 2022 2023 5636 6075 6016 6213 5875 1365 1451 1345 1386 1346 31583 36236 36754 37139 30788 total38,584 total43,762 total44,115 total44,738 total38,009 SCOPE1 SCOPE2 SCOPE3 VALUE CHAIN CARBON FOOTPRINT kg co2e/hl 31.55 27.53 CZ SK 2019 2023 SCOPE1 72 73 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ PACKAGING CZ: 8.82 SK: 10.89 This includes all production and end-of-life emissions related to the purchased packaging materials, from the extraction of raw materials to the final production phase. Covered are all purchased primary, secondary and tertiary packaging materials used for finished product packaging. For 2023, 72 % of packaging-related emissions in the Czech Republic and 76 % packaging-related emissions in Slovakia were calculated based on Scope 1 and 2 emissions data obtained directly from suppliers. The supply chain emissions of these suppliers are calculated using secondary data sources. The calculation methodology takes into account the impact of the returnable botte deposit system in Slovakia with a one-year delay, and assumes a collection rate of 71 % for cans, i.e. the 2022 collection rate. TRANSPORT AND LOGISTICS CZ: 5.32 SK: 4.66 This covers emissions from all modes of transport used to transport barley from farms to malt houses, emissions from transporting malt and other brewing ingredients, and emissions from transporting packaging to breweries. These emissions are calculated based on the estimated distance from the supplier to the production sites. Downstream logistics includes all logistics activities related to the distribution of finished products to their sales points. This includes both domestic and export downstream logistics. For 2023, 47 % of the emissions from transporting finished products in the Czech Republic and 90 % in Slovakia were calculated based on actual fuel consumption or distance-based data. The remaining emissions were calculated using average distances and assumed vehicle type. This calculation does not include greenhouse gas emissions associated with energy consumption in warehouses and secondary distribution centres downstream of the primary distribution centre. Excluded are also greenhouse gas emissions associated with the transport of waste from end consumers to landfills or recycling facilities. COOLING CZ: 7.91 SK: 2.56 This includes electricity consumed by cooling equipment at the points of sale - refrigerators in and outside shops and taps rooms in pubs. Covered are also emissions associated with electricity generation as well as loss of refrigerant gas. Excluded are emissions from domestic storage and cooling of products at the end consumers. The fact that increasing concentrations of carbon dioxide in the atmosphere lead to a warming of the Earth's surface was pointed out as early as 1896 by the Nobel Prize-winning Swedish chemist Svante Arrhenius in his theory explaining the ice ages. However, it was not until the 1980s that this issue began to be taken more seriously and the Intergovernmental Panel on Climate Change (IPCC) was established as late as in 1988. The Panel regularly publishes reports on the state of the climate and warns of the impacts of rising greenhouse gas concentrations. It's a pity w e didn'twakeupsome90yea rs ago. EMISSION CATEGORY CO2 emission intenxity (kg CO2e/hl) per product in Scope 3 AGRICULTURE AND INGREDIENTS CZ: 2.76 SK: 4.69 This covers emissions related to all ingredients needed to produce beer and other products, especially barley and hops. This covers emissions associated with the ingredient’s cultivation, including fuel combustion on farms, electricity generation consumed on farms, and the production of fertilisers and plant protection products. For malting barley, 100% of Scope 3 emissions for both the Czech Republic and Slovakia are calculated based on Scope 1 and 2 emission data received directly from suppliers, with the exception of data on diesel and other fuel consumption on farms. To consolidate the data according to the new methodology, we have now recalculated the data for 2019-2022 as well. INGREDIENT PROCESSING CZ: 0.64 SK: 0.53 Includes emissions from barley malting and hop processing. A total of 79% of Scope 3 ingredient-processing-related emissions for the Czech Republic and 51% for Slovakia are calculated based on Scope 1 and 2 emission data obtained directly from suppliers. In the overview of the total footprint, this also covers Scope 1 and Scope 2 emissions associated with the operation of in-house malt houses in Plzen, Nošovice and Veľký Šariš. PRODUCTION IN BREWERIES CZ: 1.94 SK: 3.16 This covers emissions associated with fuel combustion to produce heat in breweries as well as emissions associated with brewery-consumed electricity generation. Included are also emissions from purchased CO2, emissions from water consumption required for beer production and emissions associated with the purchase of chemicals used in breweries. Scope 3 emissions broken down by GHG Protocol categories can be found in the Standards chapter. 74 75 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 76 BACK TO CONTENTS ↑↑ waterWE HAVE TO BE ECONOMICAL WITH OUR WATER, OTHERWISE WE MIGHT RUN OUT OF IT ONE DAY. THE LESS WATER IS AVAILABLE IN GLOBAL RESOURCES, THE MORE WE HAVE TO SAVE IT. IN OUR BREWERIES, WE USE COMMON SENSE TOGETHER WITH MODERN TECHNOLOGY. AND WE ALSO TRY TO RETAIN WATER IN THE LANDSCAPE. V w ithout me, there would be no beer. beer contains 90% water and WE consume 2.8 litres of water per 1 litre of beer. 79 BACK TO CONTENTS ↑↑ 78 78 WATER MANAGEMENT 80 WATER RESOURCES OF OUR BREWERIES 80 WATER CONSUMPTION IN OUR BREWERIES 82 WATER-SAVING PROJECTS 84 WATER PURIFICATION 86 SMART TAPROOM The situation with water resources in the Czech Republic is worsening due to climate change, which is causing irregular rainfall and more frequent droughts. Moreover, rainfall, when it does come, tends to be intense, so water runs off quickly and does not soak into the soil. For these reasons, groundwater levels keep falling. The vast majority of the water that flows away from us in rivers comes from rain, so we are essentially dependent on it. Droughts have a negative impact on plants, animals and the drinking water supply, which is of course essential for beer production. We therefore find it necessary not only to help retain water in the landscape, but also to find ways of reducing water consumption in our breweries. In Plzeňský Prazdroj, the most successful in this is the Radegast Brewery, which is one of the breweries with the lowest specific water consumption in the world which also helps return water back to nature through its projects. Water is one of the basic ingredients in the production of beer and makes up around 90 percent of its content. It is therefore necessary to pay special attention to the care of the water sources used by the breweries. We contacted experts from Antea Group and had them conduct audits to address the risks in the area of water supply for breweries. Over the past two years, we have also commissioned a Water Vulnerability Assessment (WVA) around all of our breweries, which is in line with AWS (Alliance for Water Stewardship) and TCFD (Task Force on Climate-related Financial Disclosures) standards. This assessment analyses local water resource conditions and helps identify potential vulnerabilities and risks. The results of the audit have confirmed that our water resources are not under direct threat and are in good and sustainable condition. Moreover, the use of water in our breweries does not have a negative impact on the availability or quality of water in our surroundings. OUR COMMITMENT FOR 2025 WE PLAN TO REDUCE THE AVERAGE WATER CONSUMPTION IN BEER PRODUCTION TO 2.75 LITRES PER LITRE OF BEER. 90 % of beer content is water Prazdroj follows the Water Management Directive, which deals with the optimisation and the use of water resources in breweries. This includes control and management of water consumption, efficient use of water in production processes, water quality monitoring, wastewater treatment and compliance with legislative and environmental regulations. The directive also sets out procedures for pollution prevention and supports initiatives to reduce the brewery's water footprint. Each brewery has a detailed, tailored procedure for compliance with this directive. We are also guided by the Asahi Europe & International Group Sustainability Policy, which sets the basic definitions, measurement, consumption calculation and data validation for water management, inter alia. 78 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ WE ARE REDUCING WATER CONSUMPTION At Plzeňský Prazdroj, we have long been trying to reduce water consumption in our breweries, which was demonstrated in 2023, when we used an average of 2.8 litres of water to produce one litre of beer. Record low values were again achieved by the Radegast brewery, whose average consumption for the second year in a row was only 2.29 L/litre of beer. These figures include all the water the brewery needs to produce and bottle its beer. It is not only the water contained in the beer, but also the water evaporated during brewing, used for sanitation, washing, rinsing, disinfection and cooling. We continue to optimize Clean in Place technologies in all our breweries, which allow us, for example, to use bagfree stainless steel beer tanks on a large scale. We use ultrafiltration units that capture wastewater and purify it into potable water, for example for rinsing. WATER RESOURCES OF OUR BREWERIES We draw water mainly from our own sources, boreholes and wells in the vicinity of our breweries. We try to use them in a way that preserves them for future generations as well. PLZEŇ We draw more than half of our water from our own five wells in the Roudná city quarter. The rest comes from suppliers whose sources are the Mže and the Úhlava rivers. VELKÉ POPOVICE Approximately two-thirds of the water used is drawn from a  total of eleven wells in the vicinity of the brewery. The rest is taken from the Švihov reservoir. NOŠOVICE Radegast uses water from the Morávka river and its own three wells in its vi- cinity. VEĽKÝ ŠARIŠ The brewery draws water from deep wells in the area of the Torysa springs. Another source is represented by its own wells that supply the malt house. PLZEN 3.16 VELKÉ POPOVICE 2.66 NOŠOVICE 2.29 VEĽKÝ ŠARIŠ 2.64 TOTAL 2.8 DEVELOPMENT OF WATER CONSUMPTION IN BREWERIES total L/litre of beer) 3.60 3.33 3.28 3.11 3.13 2.96 2.99 3.01 3.05 3.00 2.86 2.80 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 AVERAGE WATER CONSUMPTION PER LITRE OF BEER Detailed information can be found in the Standards chapter. 80 81 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ WATER PROJECTS AT RADEGAST BREWERY Radegast has managed to reduce its water consumption by more than 40% over the past 15 years, making it one of the best breweries in the world in terms of water efficiency and water source care. Now, Radegast is one of the first in Europe to map its water footprint from seed to glass, including beer ingredient growing and the water footprint of packaging and beer tapping in the pub. The results of the study, which is carried out by the T. G. Masaryk Water Research Institute, will be available in 2024. IRRIGATION BAGS FROM RADEGAST Radegast Brewery has long been active in the protection of water resources and supports projects aimed at water retention in the landscape. In 2023, the brewery donated 150 special irrigation bags for trees to the Frýdek-Místek municipality. These are used for efficient irrigation, water saving and to increase the chances of the tree rooting. More than 500 irrigation bags have already been used in this way in Czech and Moravian towns and cities. The brewery's own employees also contribute to nature protection by caring for the mountain meadows at Radhošt' or planting trees in the Beskydy Mountains during volunteer days. RADEGAST BREWED BEER FROM AIR In 2023, we drew attention to the issue of water loss in nature with the beer-brewed-fromair event. The intention of this awareness-raising event was to point out ways to address this issue. As the first brewery in Central Europe, Radegast brewed beer from water obtained from air humidity in cooperation with the University Centre for Energy Efficient Buildings (UCEEB) of the Czech University of Technology in Prague and the Karbox company. The EWA equipment used for this project is able to extract water even in very dry and hot environments. It is primarily used as an emergency source of drinking water, for example, for emergency services in the driest and hottest places in the world, where it can provide about 35 litres of water per day. Industrial production of beer by this method would of course be impossible or very expensive. The lager named Futur is proof that beer could be brewed this way, but it is also a message that we don't want a future without water. That is why we have long been working on reducing water consumption and protecting its sources. RADEGAST: FIGHT FOR WATER A MILLION CROWNS TO BUILD PONDS ACROSS THE CZECH REPUBLIC Radegast has long been involved in water retention in the landscape. The brewery has newly joined forces with the Czech Forest Management and supported the building or restoration of ponds in forests across the Czech Republic with CZK 1 million. Thanks to the brewery the projects were selected with involvement of the general public. In 2023, this supported the creations of a total of 29 ponds in eight locations. new ponds were formed thanks to Radegast 29 sites were selected with public assistance 8 Water retention in the landscape is also addressed by the FOR BARLEY and Blossom for Hops projects. For more information see the Ingredients chapter. 500 irrigation bags were distributed in Czech and Moravian towns and cities 83 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ PLZEN: the brewery first neutralizes the pH, then the wastewater goes to the municipal WWTP, where complete purification is carried out. VELKÉ POPOVICE: wastewater is completely treated by the brewery in its own wastewater treatment plant. NOŠOVICE: wastewater is pre-treated using anaerobic technology in the brewery. VEĽKÝ ŠARIŠ: wastewater goes to the municipal wastewater treatment plant without primary treatment. NOŠOVICE PONDS More than twenty years ago, the Radegast brewery built a system of interconnected ponds that naturally purify stormwater and water drained from the brewery. These ponds also increase the diversity of biotopes in the Morávka river floodplain. The treatment process occurs during rainwater flow through the system, when residual organic pollution is naturally removed. The ponds cleaned over 40,609 m3 of water in 2023. WATER QUALITY IMPROVEMENT IN VELKÉ POPOVICE The Velké Popovice brewery continues its project aimed at water quality improvement in the Pivovarský pond. Through the application of special bacteria that remove organic silt and reduce the amount of nitrogen compounds and other nutrients in water, 2,400 m³ of organic silt was removed by the first dose. The project resulted in improved visual water quality, elimination of cyanobacteria and increased water oxygen concentration. The Velké Popovice brewery purifies water directly in its own wastewater treatment plant, so the water discharged from the brewery meets strict environmental standards. ENERGY-SAVING MEASURES IN BREWERIES Radegast was the first in Central and Eastern Europe to introduce the upflow anaerobic sludge blanket (UASB) system for wastewater pre-treatment. The treatment plant also produces biogas, which is further used in the brewery's boiler room as an environmental fuel for heat production. The result is lower CO2 emissions. Further savings are generated by a project aimed at reuse of water from liquefaction of fermentation-produced CO2. Water that used to go down the drain is now used in the plant cooling system. By this measure, the brewery has saved more than 100,000 m³ of water in ten years, which is roughly equivalent to the volume of 40 large swimming pools. By installing an air compressor with a closed cooling circuit that does not consume additional water, Radegast saves over 50,000 m³ of water per year. Eco-friendly urinals installed in the Radegastovny will in turn save water in these pubs. This saving may amount to up to 250,000 litres of drinking water per month. The wastewater treatment plant, which Radegast put into operation in 1995, is also part of the brewery´s environmentally friendly approach. Since then, the new technology has reduced wastewater pollution from the brewery by 91 percent. Water savings are also achieved thanks to the FOR HOPS project, which focuses on sustainable water management in hop-growing areas. Soil sensors and weather stations are installed in the hop fields to monitor the weather, soil and plant conditions and help set up efficient irrigation. 100,000 m3 of water would fill about 40 swimming pools WC we have environmentally-friendly urinals in the Radegastovny pubs 91 % is how much we have reduced water pollutio in Radegast FOR HOPS is our project for efficient irrigation of hop fields bioGas is used in the brewery boiler room as environment-friendly fuel 2 we have bio- logical ponds on the Morávka river Water Purification in Breweries More about this topic in the Ingredients chapter. 84 85 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ Thanks to the latest scientific discoveries, we know that the Moon also has water. In 2009, during the Chandrayaan-1 and LCROSS missions, water was discovered as ice in rocks and in permanently shadowed craters at the poles of the Moon Subsequent missions in the following years confirmed these initial findings. theo r etically, we could even b rew beeronthemoon. Smart Taproom The Smart Taproom project was initiated by Plzeňský Prazdroj to help pubs and restaurants in the Czech Republic save part of their energy and water costs. Together with the Czech Institute of Informatics, Robotics and Cybernetics of the Czech University of Technology in Prague as the main expert guarantor, and technology companies Microsoft, Adastra and Smart Technology, we measure the energy and water consumption of the tap and then adjust the tap technology to be more energy and water efficient. WE MEASURE THE ENTIRE JOURNEY OF THE BEER FROM BARREL TO GLASS Experts have installed nearly two thousand sensors in more than fifty pubs in the Czech Republic and Slovakia and are continuously analysing the data obtained from them. The instruments record the temperature of the room where the barrels are stored, the beer flow through the tap line, the temperature in the tap room, the temperature of the beer at the moment of tapping into the glass and the total energy and water consumption in different parts of the tap room. The Smart Taproom project focuses both on possible reductions in electricity consumption and water savings, for example when washing, rinsing and cooling glasses. Maintaining the quality of draught beer is essential. No one has ever made similar measurements on such a large scale. Detailed information on water consumption and wastewater treatment in our breweries and malt houses can be found in the Standards chapter. 30 % saving water and energy in pubs is our goal to be achieved through the Smart Taproom project 86 87 BACK TO CONTENTS ↑↑ 88 IngredientsWE BUY BARLEY AND HOPS FOR OUR BREWERIES FROM FARMERS WHO PROVIDE GUARANTEED PREMIUM QUALITY. WE ALSO SUPPORT LOCAL FARMERS WITH OUR OWN INITIATIVES, FOR BARLEY, FOR HOPS AND BLOSSOM FOR HOPS, WHICH HELP THEM BETTER COPE WITH THE IMPACT OF CLIMATE CHANGE ON THEIR BUSINESS. VI The local hop varieties Žatecký poloraný červeňák (ZATEC medium-ripening red hops), Sládek (Brewer), Premiant (Star) and Žatecký pozdní (ZATEC late harvest) give the beer its characteristictaste. I'm a hop plant and I'm really at home here. 91 BACK TO CONTENTS ↑↑ 90 BARLEY 92 FOR BARLEY (CZECH REPUBLIC) / FOR BARLEY (SLOVAKIA) 96 HOPS 99 FOR HOPS 102 BLOSSOM FOR HOPS I It is the ingredients that give our beer its unique taste. We therefore pay great attention to selecting of their suppliers. We work with farmers with whom we share the same sustainability and environmental values. We make sure that the ingredients meet the highest quality criteria, and this requires observing the correct procedures for sowing, crop treatment and harvesting, as well as taking care to ensure proper storage and transport. In recent years, the quality of our ingredients has been significantly affected by climate change, particularly extreme weather events such as heavy rainfall or prolonged droughts. That's why we consider it our duty to support local farmers and to test new methods of cultivating barley and hops that help crops better withstand weather fluctuations. It is a way to ensure that plants continue to thrive in our region in years to come like today. Our emphasis on using top quality local ingredients enables us to brew beer that proudly bears the protected geographical designation "České pivo" (Czech Beer). Barley  In Plzeňský Prazdroj we only use domestic varieties of barley with their distinctive high quality. Their grains are full of flavour and contain the right combination of carbohydrates, enzymes and other substances necessary for the proper malting and brewing process. Thanks to these properties, barley is a key ingredient for the production of traditional Czech beer with its rich flavour and aroma. OUR COMMITMENT FOR 2030 Prazdroj's beers will be brewed EXCLUSIVELY with ingredients from sustainable agriculture. 146,190 tonnes of barley from suppliers within the Czech Republic IN 2023 WE PURCHASED 100% of the barley for the production of our beer comes from Czech and Slovak growers. 27,884 tonnes of barley from Slovak suppliers Detailed information can be found in the Standards chapter. 90 92 93 BACK TO CONTENTS ↑↑ FOR BARLEY Project Launched  In 2023 we launched a new initiative called FOR BARLEY aimed at promoting Czech malting barley. As with the other ingredients we use, its quality has been negatively affected by climate change in recent years. This makes growing barley risky for some farmers due to weather fluctuations. The reason is that if its quality does not meet the high malting requirements, they have no choice but to sell the crop at a fraction of the price for animal feed purposes. This is one of the reasons why the area on which barley is grown in the Czech Republic has almost halved in the last 30 years. According to data from the Czech Statistical Office, in 2023 barley fields covered 192,393 hectares, i.e. around 7% of the domestic arable land. Prazdroj is one of the largest buyers of barley in the Czech Republic. We use barley from 140 farmers and growers in the Czech Republic and from about 40 suppliers in Slovakia. We buy about 175,000 tonnes from them annually in both countries taken together, which represents an area of about 30,000 hectares in the Czech Republic and over 5,000 hectares in Slovakia. We buy most of that quantity from the farmers directly. Barley is processed in the traditional way in the brewery malt houses in Plzen, Nošovice and Veľký Šariš. For 2024, we are preparing a  pilot project to certify barley growers in the Czech Republic according to the standards of the SAI Platform initiative. of arable land in the Czech Republic is currently used to grow spring barley (192,393 hectares) 7 % The terms and conditions of purchase are set out in the Barley Purchasing Directive, which focuses on the entire process of purchasing for malt houses, from planning and need determation via supplier, warehousemen and transporter selection to quality control and billing. Key steps include regular barley quality checks during the growing season and after harvest, and careful recording and accounting of all deliveries and shipments. The main goal is to ensure sufficient quantities of the best quality barley in the varieties we use for our beer. The new methods should lead to the abandoning of conventional farming methods, which are characterised by intensive use of chemical fertilisers and pesticides, cultivation of large areas of a  single crop and tillage mechanisation. Regenerative practices, on the other hand, aim to bring life back to the soil. We treat soil gently to preserve its naturalness, not disturbing it by deep ploughing, for example. We keep the fields continuously sown or covered to protect them from erosion and to allow the roots of the plants to loosen the soil and retain water. We also use interim crops to protect the soil between the main crops and to replenish nutrients in a natural way. All this should lead to an increase in organic matter content in the soil and thus to reduced need for chemical fertilisers, which has a positive effect on malting barley quality. The barley needed for our production in the Czech Republic would cover an area equivalent to more than six times the size of the Lipno reservoir. 6× The barley needed for our production in Slovakia would cover an area equivalent to almost twice the size of the Liptovská Mara reservoir. 2× The FOR BARLEY initiative, in which other institutions such as the Czech University of Agriculture, Mendel University and the JTZE group together with other partners have joined us, applies regenerative agriculture methods in combination with the use of state-of-theart measuring technologies on selected areas. Sowing practices and crops remain the same, only the method of cultivation changes. The main objective of the project is to increase barley tolerance of adverse conditions and to ensure better harvest predictability over a longer period. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ The FOR BARLEY project will produce results in about five years, during which time scientists will compare data from regenerating areas with those using conventional farming practices. They obtain it continuously from meteorological stations, soil probes, satellite images and soil analyses. Scientists selected the test sites to ensure the greatest possible diversity of climates and soil types. Thanks to this, the knowledge gained by the project can be used for other growers in the Czech Republic. RESCUE OF MALTING BARLEY IN SLOVAKIA CONTINUES Slovak farmers are experiencing similar complications with malting barley cultivation due to climate change. Slovakia used to be one of the malting superpowers, and in 2020 it was still the fifth most important malt exporter in Europe. However, the area of malting barley here has fallen dramatically in recent years due to weather fluctuations. In 2022, Prazdroj joined forces with the Ekopolis Foundation and experts from the National Forestry Centre on the Slovak FOR BARLEY project to open a discussion on the future of sustainable malting barley cultivation in Slovakia and to support local farmers. The project uses the principles of agroforestry by combining crop cultivation with targeted tree planting and dividing the field into smaller plots. This will prevent soil erosion and runoff of the most fertile arable soil particles, while increasing the ability of the soil to retain water. 500 trees and bushes have been planted by us. You will find poplars, oaks, maples, mulberry trees, wild apple and pear trees among them. After a  pilot project at the Radošinka agricultural cooperative in Velké Ripňany, we expanded the initiative to other locations in 2023. The principles of agroforestry were gradually applied by growers from Rozkvet in Odorín, Prašice in Jacovce and Dvory nad Žitavou. Among other things, more than 500 trees were planted, including poplars, oaks, maples, mulberry trees, wild apple and pear trees, as well as other tree species. Farmers' interest in joining the project is growing, so we will expand tree planting to other locations. THE AIM OF THE SLOVAK FOR BARLEY PROJECT IS NOT ONLY TO IMPROVE THE CONDITIONS FOR GROWING MALTING BARLEY, BUT ALSO TO IMPROVE THE ENVIRONMENT AND SUPPORT THE RESTORATION OF FAUNA AND FLORA IN SLOVAKIA. 9594 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ However, the Czech hop harvest fluctuates greatly due to weather changeability and irregular or localised rainfall. Recent year-on-year fluctuations in harvests have repeatedly exceeded a thousand tonnes, which could have implications for the local economy as well as the brewing industry in the future. In addition, the lack of water affects the alpha acid content and hops could lose their typical bitterness. All these are reasons why Prazdroj has focused its efforts on the longterm sustainability of Czech hop production. 88 % of hops purchased come from Czech growers 606 tons of hops for breweries in the Czech Republic IN 2023 WE PURCHASED 43 tons of hops for the brewery in Slovakia Hops Czech hops give the beer its unique bitter taste and exceptional aroma. Together with water and barley, it is a vital ingredient that needs care so that millions of people around the world can continue to enjoy Czech beer. The Czech Republic is one of the world's leaders in hop production with more than a thousand years of tradition. Approximately 6,000 tonnes of hops are produced annually on 5,000 hectares, over 80% of which is represented by the most famous variety Žatecký poloraný červeňák (Zatec semi-ripened red hops). 96 97 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ The FOR BARLEY project has achieved ITS first results The FOR BARLEY research project, which we launched in 2021 in collaboration with Microsoft and the Hop Institute, has produced its first major findings after two years of measurements. Researchers identified the optimal amount of water needed for hop growth and obtained information on how long water stays in the soil and when exactly hops start to suffer from a lack of moisture. This knowledge has already helped hop growers in Chrášt'any to improve irrigation efficiency and increase yields by up to 40%. FOR MORE INFORMATION ABOUT THE PROJECT, VISIT WWW.PROCHMEL.CZ At Prazdroj we use proven varieties such as Žatecký poloraný červeňák (Zatec semi-ripening red hops), Sládek (Brewer), Premiant (Star) and Žatecký pozdní (Zatec late harvest), which give our beer its characteristic taste. Most of the hops purchased come from Czech hop growers. For the production of special beer editions and flavoured drinks we also import foreign hop varieties that are more suitable for these purposes. After harvest, each batch of hops is carefully stored in climate-controlled warehouses to protect them from oxidation until the brewer decides to put them in the brewhouse to enrich our beer with their unique bitterness and typical aroma. The project has so far involved six hop farms in the Žatecko region, where sensors, soil probes and weather stations monitor the condition and development of plants, soil moisture and composition, and climatic conditions. The measured data is collected in an online database accessible to all participating growers. In addition, TensoAI, our partner company, developed an irrigation model in 2023 that will allow hop growers to plan irrigation according to the weather and plant needs. The upcoming app, which will be tested with selected growers during the 2024 season, will be available to all hop growers in the future to maintain the quality and yield of the domestic hop production, one of the top three globally in terms of volume. 40 % this much the harvest has increased in Chrášťany 98 99 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ The largest beer mug CREATED from flowers in the Czech Republic. On the hop farm in Běsná, we used 16 kg of chamomile and several types of mustard SEED to plant a giant beer mug that was 60 metres high and 47 metres wide. It blossomed, was entered into the Czech Book of Records and became the record holder of the year in its category. The wide publicity of this event helped us attract attention to the Blossom for Hops project of regenerative agriculture. 100 BACK TO CONTENTS ↑↑ 102 Blossom for Hops: return to the roots Flowers will help improve the soil's ability to retain water and boost hop growth naturally Ten hop gardens in the Žatecko region blossomed in 2023 as part of Plzeňský Prazdroj's new project Blossom for Hops. We planted flowers, grasses and perennial crops between hops rows in selected hop gardens to help nourish the hop garden and, thanks to their strong roots, retain moisture and prevent soil erosion. At the same time, some of them became sheep pastures. With the help of modern technology, we monitor the soil and the condition of the plants on 20 hectares of hop gardens. hop gardens in the Žatecko region in 2023 blossomed 10 flowers, grasses and perennial crops to help nourish the hop garden and, thanks to their strong roots, retain moisture and prevent soil erosion. 103 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ Hops, as we know them today, began to be added to beer in the early Middle Ages, around the 8th or 9th century. Before that, beer in Europe had been flavoured with various herbs and spices, such as a mixture known as gruit. These usually included herbs such as wormwood, heather, juniper, hyssop, mint or sage. Every region had its own specific treatment that gave the beer its characteristic taste. Thereisnothing like the hop variety Žatecký polora ný červeňákcultivatedbying . KarlOswald. The blossom for Hops project is unique in that it is a scientific research project that will continuously compare the condition and yield of hops from regenerating hop gardens and hop gardens of the same area and in the same locations, where conventional farming methods have been maintained, over a period of five years. Blossom for Hops is another initiative of Prazdroj, which reflects its efforts to ensure sustainability of key ingredients for Czech beer production. The project, which was designed in cooperation with the hop-growing Arix Czech Hop group, the Czech University of Agriculture and the Postoloprty Laboratory, is intended to mitigate the effects of climate change and preserve the quality and quantity of hops despite the recently unstable weather. FOR MORE INFORMATION ABOUT THE PROJECT VISIT WWW.KYTKYPROCHMEL.CZ For more information on the volumes and structure of the purchased ingredients, please refer to the Standards chapter. 104 BACK TO CONTENTS ↑↑ 107106 packagingWE ANALYSE THE LIFE CYCLE OF PACKAGING AND LOOK FOR WAYS TO REDUCE ITS CARBON FOOTPRINT. WE ARE REPLACING SINGLE-USE PLASTICS WITH RECYCLATES, REDUCING THE THICKNESS OF PACKAGING FILMS AND INCREASING THE SHARE OF RETURNABLE PACKAGING IN OUR PORTFOLIO. WE STRIVE FOR THE GREATEST POSSIBLE CIRCULATION OF ALL PACKAGING MATERIALS WE USE AT PLZEŇSKÝ PRAZDROJ. VII i'm glad people respect me and don't throw me away. In 2023, more than 92% of cans in Slovakia were recovered and recycled. 109 BACK TO CONTENTS ↑↑ RELATIVE ENVIRONMENTAL FOOTPRINT 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 keg barrel 50 L 0.02 tank 0.01 can 0.5 L 0.16 returnable bottle 0.5 L 0.06 non-returnable bottle 0.4 L 0.47 108 LIFE CYCLE OF PACKAGING 110 RETURNABLE PACKAGING 111 CANS 114 GLASS 116 PAPER Packaging has a significant impact on the environment, which is why we pay great attention to it at Prazdroj. This is an area that is key to planning our corporate strategy, with the environmental footprint of packaging being a decisive criterion for its further development and use in our portfolio. We aim to ensure that all our packaging is reusable or recyclable. We are succeeding in reducing its carbon footprint and waste thanks to that. We provide extended producer responsibility in the Czech Republic through EKO-KOM and in Slovakia through Elekos and the Deposit System Administrator. LIFE CYCLE ANALYSIS The basis of our packaging policy is life cycle analysis (LCA) of beverage packaging developed in cooperation with experts from the Faculty of Environmental Protection Technology of the University of Chemistry and Technology. This analysis allows us to comprehensively assess the environmental impact of different types of packaging. OUR COMMITMENT FOR 2030  All of our product packaging will be reusable or recyclable and at least half made from recycled materials. We will end the use of single-use plastics made from virgin material. 7 out of 10 beers in the Czech Republic and 6 out of 10 in Slovakia are sold in returnable packaging, which we use repeatedly for several years. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 108 111 SK RETURNABLE BOTTLES NON-RETURNABLE BOTTLES CANS KEG BARRELS TANKS 0.5 % 35 % 41 % 22 % 2 % REDUCING THE USE OF DISPOSABLE MATERIALS We stopped selling beer in PET bottles in 2021, but we continue to address the energy intensity of other plastic packaging materials and develop new technologies to replace them or at least reduce their carbon footprint. Packaging made from virgin plastics, i.e. packaging made from new raw materials, is a major environmental burden. Wherever possible, we replace this type of plastic with recycled plastic. Excluding plastic containers that are reused for several years, we have reduced our consumption of virgin plastics by 86% since 2019 and plan to stop using them altogether by 2030. We only use disposable plastic from virgin material in cases where we have not yet been able to find a suitable alternative that provides the same functionality. These include plastic lids on barrels, bags in mobile tanks and stretch films. For all these components, we are currently developing an alternative to the existing solution. For stretch films used to wrap pallets of bottles or cans, we have successfully reduced the amount of plastic used over the long term. In 2023, we saved 4 tonnes of plastic just by reducing the thickness of the stretch film from 11 to 10 microns. Currently, this is the maximum possible reduction while maintaining strength, flexibility and the ability to protect the packaged product. This saves 18 tonnes of plastic per year compared to standard film. The reduction in the overall recycling rate for plastics in the Czech Republic in 2023 from 40% to 31% is due to doubling the number of purchased containers with a lower recyclate share but a more than ten-year reuse time. RETURNABLE PACKAGING Plzeňský Prazdroj's long-term strategy is to increase the share of returnable packaging – bottles, kegs, tanks and cans – in its portfolio. At the same time, Prazdroj strives for maximum circulation of packaging, i.e. that it is as much as possible returnable or reusable and does not end up in incinerators or landfills. microns is the thickness of our stretch film 10 this is how much we have reduced our consumption of virgin plastics in disposable packaging since 2019 86 % IN 2023, WE SOLD 69 % OF OUR PRODUCTS IN THE CZECH REPUBLIC AND 58 % IN SLOVAKIA IN RETURNABLE PACKAGING. Returnable glass bottles have long been Prazdroj's most sought-after packaging in the Czech Republic, accounting for more than a third of sales. However, recently there is a  growing trend of consumer interest in cans. While in 2017 cans accounted for less than 14 % of all our packaging in the Czech Republic, by 2023 this percentage increased to 29 %. In Slovakia, cans are even the best-selling package type. This trend was also reflected in a 24% year-on-year decline in glass purchases. PACKAGING STRUCTURE OF OUR PRODUCTS AND THEIR SHARE IN TOTAL DOMESTIC SALES : CANSCans enjoy great public popularity. In order to minimise their environmental impact, we reduce the thickness of the material used and thus the amount of aluminium in the long term. We are also continually increasing the proportion of recycled material in their production. In the Czech Republic, Pilsner Urquell was the first brand to use cans with a certified 75% recyclate content. 75 %recyclate is used in our Pilsner Urquell cans 35 % SHARE OF RECYCLATE IN THE CAN BODY IN 2023 (%): 75 % 47 % 60 % 75 % PILSNER URQUELL 500 ML OTHER BRANDS 500 ML ALL BRANDS 330 ML ALL CANS CZ RETURNABLE BOTTLES NON-RETURNABLE BOTTLES CANS KEG BARRELS TANKS 2 % 35 % 29 % 31 % 3 % Detailed information can be found in the Standards chapter. 110 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ SYMBOLIC CLOSURE OF THE CAN CYCLE IN SLOVAKIA Thanks to the deposit system for packaging, we had managed to increase the share of recycled aluminium in the body of all new cans in Slovakia to three-quarters by 2023. We started buy-back of the material from the deposit system, which we then recycle into new material for the production of more cans, thus symbolically closing their cycle. We thus fulfilled our plan for 2030. The much less energy-intensive production of recycled cans has reduced their carbon footprint by 49 %, or 8,472 tonnes of CO2, and saved 512 tonnes of aluminium. As collection rates increase, we will continue to increase the proportion of recyclates in packaging. In the long term, we are able to cover more than 85% with material collected under the deposit system without having to buy recyclate from other sources. 49 % we have reduced our carbon footprint by EFFORTS TO INTRODUCE DEPOSITS FOR CANS IN THE CZECH REPUBLIC Plzeňský Prazdroj also supports the system of deposits for beverage packages in the Czech Republic, where unfortunately most of them end up in incinerators or landfills. That's why, together with other major beverage companies in the Czech Republic, we founded the Package Deposit Initiative in 2021. It is seeking to introduce a nationwide scheme involving all producers and importers of beverages in plastic bottles and cans. Customers would be able to return their PET bottles and cans for which they had to pay a deposit at a wide and convenient network of collection points, for example at grocery stores or petrol stations. For the Czech Republic, this would be a significant step forward in the transition to a circular economy. In 2023, the Ministry of the Environment presented a bill that should allow the introduction of the deposit system in the Czech Republic as early as 2026. we have fully circular packaging in Slovakia 7 years earlier than originally planned. IN 2023, MORE THAN 92 % OF CANS IN SLOVAKIA WERE COLLECTED AND RECYCLED. tonnes of CO2 was the total emission savings in 2023 due to the closure of the can cycle 8472 Source: Annual Report of the Deposit System Administrator www.slovenskozalohuje.sk 112 113 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ GLASS years is the length of bottle circulation on the market 8 is the average bottle return rate 98 % bottle refill rate 26× THE FIRST AUTOMATIC SORTING LINE OF RETURNABLE BOTTLES IN THE CZECH REPUBLIC In the Pilsen brewery we have put into operation an automatic sorting line for returnable glass bottles, which is the only one in the country that can machine-sort bottles of our brands from bottles of other breweries and detect damaged pieces. This step has made the sorting of the millions of empty returnable bottles we collect from shops more efficient and reliable. The sorting has been done manually so far. The investment of almost CZK 50 million allows us to currently control and sort 81,000 beer bottles per hour directly in the crates. Thanks to this automation, our current employees can take other positions within the brewery. Returnable bottles have a long tradition in the Czech Republic 200,000,000bottles are currently in circulation with our products BOTTLING LINE Plzeňský Prazdroj has also put into operation a new fully automated bottling line for glass bottles with volumes of 500 and 330 mL, which is able to fill returnable and non-returnable bottles and pack them into plastic crates or cardboard boxes. The 6,500 m² line with a capacity of up to 60,000 bottles per hour is able to fill up to 900,000 bottles per day. Advanced technologies enable checking at each stage of the bottling process. These include automatic sorting of returnable bottles, inspection of empty bottles after washing, checking the level and cap after filling, and thorough inspection after pasteurisation, including label revision and data readability. The line is controlled by a smart Line Management system, which optimises the line operation, minimises material and energy losses, and interfaces with logistics and planning systems. different types of bottles filled on a single line 10 The new bottling line can process up to 900,000 bottles per day. and Slovakia and Prazdroj has long supported the system of deposits for returnable bottles. We have an agreement with most of the large and medium-sized domestic breweries to exchange bottles that end up in destinations other than their home breweries. This is why more than 98% of our bottles are returned to us. We currently have around 200 million bottles in circulation, they have an actual lifetime of 8 years and we fill a bottle on average twenty-six times during its lifetime. The deposit system saves production of millions of new bottles, while empty bottles and crates are transported from the stores using reverse logistics in the same trucks we use to deliver new goods. The new line is unique in its ability to process 10 different types of bottles and various secondary and tertiary packaging, making it the most comprehensive equipment of its type in the Czech Republic. In addition to increased efficiency, we also expect energy savings and a reduced environmental burden. We are also planning to install a new bottling line in the Velké Popovice brewery. 114 115 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ The introduction of returnable bottles in the mid-19th century was not driven by ecological motives of manufacturers, but by the desire to reduce production costs. Some breweries and mineral water producers in Europe and North America introduced a system DEPOSIT for returnable bottles to encourage consumers to return bottles. w e usea returnablebottle 2 6 timesonaverage. LABELS Plzeňský Prazdroj records a  77% recyclate rate in the Czech Republic and 95% in Slovakia in paper packaging. However, in 2023, the Czech Republic abandoned the use of recycled paper for label production due to complications and a high number of defective pieces. We are currently working intensively on the development of a new label prototype that is expected to meet our quality standards. We continue to recycle the paper returned from the bottle washing process. 77 % Share of recyclate in the Czech Republic 95 % Share of recyclate in Slovakia The decline in recycled paper use in the Czech Republic was also caused by the large volume of Christmas multipacks and premium packaging, for which a suitable solution with a higher recycled content is not yet available. PAPER 116 117 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ BACK TO CONTENTS ↑↑ wasteWE STRIVE TO ENSURE THAT NOT ONE GRAM OF WASTE FROM OUR PRODUCTION ENDS UP IN A LANDFILL. IN SLOVAKIA WE HAVE ALREADY SUCCEEDED, IN THE CZECH REPUBLIC WE ARE APPROACHING THIS GOAL BY LEAPS AND BOUNDS. IN EACH OF OUR BREWERIES, WE IMPLEMENT PROCESSES AND TECHNOLOGIES THAT ALLOW US TO REUSE WASTE AS INGREDIENT OR ENERGY. VIII cows will enjoy you or maybe we'll bake you into crispy crackers. What will happen to me? 119118 121 BACK TO CONTENTS ↑↑ 120 WASTE MANAGEMENT 120 LANDFILL 123 WASTE FROM PRODUCTION 124 GLASS AND CUPS AT FESTIVALS 126 SECONDARY MATERIALS FROM PRODUCTION As part of our responsible business strategy, we at Plzeňský Prazdroj have accepted a commitment to sustainable waste management. The aim is to reduce the amount of waste we produce, recycle as much as possible and manage materials efficiently so that as little waste as possible ends up in landfills. We follow the Waste Management Directive and each individual brewery has a detailed, tailored procedure to meet the requirements of this directive. This procedure sets out the hierarchy of waste management methods, the duties of employees, the method of waste sorting, collection, transport, storage, disposal and record keeping. Our waste management is based on the waste hierarchy. We use methods that minimise impacts on the environment and make maximum use of our waste. Brewery, distribution centre and technical service managers are responsible for this area. They introduce new processes and technologies that help us recover valuable materials. Over the last year, we have managed to reduce the amount of landfilled material in the Czech Republic by almost half, and in Slovakia we have even reached zero. OUR COMMITMENT FOR 2025  NO WASTE FROM OUR BREWERIES WILL END UP IN A LANDFILL. LANDFILLING IN TONNES CZECH REPUBLIC tonnes 2022 713 tonnes 2023 376SLOVAKIA tonnes 2022 44 2023 0 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 120 THE ŠARIŠ BREWERY HAS ELIMINATED LANDFILLING COMPLETELY, ALL GENERATED WASTE IS REUSED The Šariš Brewery has reached a significant milestone in sustainability. All waste from its production is reused, recycled or provided for energy recovery. The company achieved this goal two years earlier than originally planned. Thanks to gradual modernisation and an efficient waste management system, the brewery has avoided landfill, while by-products of production, or secondary materials such as brewery grinds and yeast, are used as animal feed. Secondary raw materials accounted for 95% of the 19,000 tonnes of waste produced by the Šariš Brewery in 2023. Other materials such as glass and paper, labels and plastic or metal packaging are recycled. The waste from beer filtration is composted and wooden packages are used for energy recovery. All waste from our production in Šariš is reused or recycled TOONES TOWARDS ZERO LANDFILL IN OTHER BREWERIES We also want to achieve zero landfill in other breweries, so we are focusing on reducing the production of mixed packaging and municipal waste. On the premises of our breweries, compression containers for paper and plastic packaging residues and containers for sorted waste help us significantly. Waste from production SECONDARY MATERIALS: 2022: 192,445 tonnes 2023: 190,545 tonnes OTHER WASTE: 2022: 12,010 tonnes 2023: 12,091 tonnes HAZARDOUS WASTE: 2022: 75 tonnes 2023: 29 tonnes Striving for waste prevention and reuse is behind the brewery's success. We have newly established cooperation with a company that operates a waste-to-energy facility. This cooperation guarantees reuse for energy generation of all that we are unable to reuse ourselves, including waste that ended up in landfills a year earlier. WASTE TREATMENT WITHOUT BY-PRODUCTS: CZ 90% recycling 7% energy recovery 3% landfill 7 % 3 % WASTE TREATMENT WITHOUT BY-PRODUCTS: SK 97% recycling 3% energy recovery 0% landfill 97 % 3 % 90 % tonnes we have managed to reduce hazardous waste by that much in 2023 through innovation and replacing old equipment with safer alternatives. The Šariš Brewery has the best results in the area of waste management within the Plzeňský Prazdroj Group thanks to high environmental awareness and diligent waste separation by its employees. 203 thousand tonnes is the amount of waste from all of Plzeňský Prazdroj in 2023 205 thousand tonnes is the amount of waste from all of Plzeňský Prazdroj in 2022 Detailed information can be found in the Standards chapter. 122 123 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 100 % recycled plastic is contained in our disposable cups WE ARE INTERESTED IN HOW OUR SUPPLIERS ARE DOING We also monitor waste recovery, recycling and disposal by suppliers and contractors. When selecting suppliers, we give preference to companies that reuse their waste and secondary materials and prefer their material recovery to incineration or landfilling. RETURNABLE GLASS AND CUPS AT FESTIVALS When selling tap beer at summer festivals we increasingly use returnable washable cups or glasses. In 2023, the number of events with returnable cups increased by more than a quarter to 66% in the Czech Republic and by more than a third to 16% in Slovakia. As a result, we distributed 1.44 million fewer disposable cups compared to the previous year. When event organizers do not allow returnable glass or cups, we choose disposable cups made of 100% recycled plastic. At the same time, we are looking for solutions to replace recycled plastic cups with a suitable alternative that retains their properties and has an even lower carbon footprint. We have reduced the number of disposable cups at festivals by 1.44 million in 2023. 124 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ The most valuable residue from malting barley is malt flower. These are the sprouts and roots that have grown during the germination of the barley before the whole process is completed by drying to remove excess moisture from the germinated grains. Malt flower is full of vitamins, minerals and enzymes. It is used to flavour cattle feed or to produce medicines. Secondary materials from production In the brewing industry we mainly process natural materials. As a result, most of our waste is also natural and we therefore have the opportunity to reuse it. Thanks to longterm efforts, we are now able to reuse all secondary materials generated by our production. For example, waste from malting is becoming an important source of livestock feed, with mainly yeast and brewers' mash valued by farm animal breeders for their high protein, fibre and calcium content. However, farmers can also use sewage sludge as a fertiliser and waste diatomaceous earth from filters, which is ploughed in to lighten and aerate the soil in reclaimed areas. The most important by-product in the production of our beer is spent grains, produced after barley malt boiling and wort straining. Spent grains mainly consist of grain husks removed during milling and residual starch. This by-product has long served as a popular and highly nutritious animal feed. Details on waste streams by material can be found in the Standards chapter. SPENT GRAINS PRODUCTION IN 2023 CZ 148thousand tonnes SK 15thousand tonnes AS FEED WE USED CZ 99.9 % spent grains SK 100 % spent grains We enter into long-term contracts with malt waste buyers and share weekly brewing schedules with them to make the deliveries to them as efficient as possible. Our customers then supply the secondary materials directly to farmers and agricultural cooperatives. Thanks to that, some of them finally end up with our barley or hop suppliers. Plzeňský Prazdroj once decided to also use it in another way, and so cooperation with the Zemanka Bio Bakery was established, now baking beer crackers from our spent grains for five years already. In 2023, 109 tonnes of spent grains were used in their production. Attention , in the case of horses, when presentinthefeedmix,itis c onsidereddoping. 126 127 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 129128128128 peopleWE KNOW THAT OUR PEOPLE AND THEIR DIVERSITY GIVE PLZEŇSKÝ PRAZDROJ ITS STRENGTH. THAT'S WHY WE PLACE GREAT EMPHASIS ON DIVERSITY, INCLUSION AND A FAIR APPROACH TO PAY. WE WANT TO CREATE AN ENVIRONMENT WHERE PEOPLE ARE HAPPY AND CAN FULLY REALISE THEIR POTENTIAL. WE SUPPORT THEIR PROFESSIONAL DEVELOPMENT AND PERSONAL GROWTH, AS WELL AS ENGAGEMENT IN THEIR COMMUNITY. IX ph ysical, mental and social well-being is important to m e. Well-being has a firm place in Plzeňský Prazdroj's strategy BACK TO CONTENTS ↑↑ 131 130 SATISFACTION SURVEY 132 DIVERSITY AND INCLUSION 135 EDUCATION  138 WELL-BEING 140 VOLUNTEERING 141 DEVELOPMENT OF AND SUPPORT FOR YOUNG TALENTS 142 OCCUPATIONAL HEALTH AND SAFETY 144 ETHICS 144 PRAZDROJ STARS We believe that Prazdroj is so strong thanks to the diversity of our employees, who put different perspectives and skills into play. It is they who contribute to the development and growth of our company most. We make sure that everyone feels respected and motivated, and that in turn allows us to create an environment where people are happy and can fully realise their potential. We support their career development as well as their personal growth and community involvement. Every year we conduct a survey to find out how satisfied they are, so that we can continue to improve and move Prazdroj forward together. In 2023, as before, the satisfaction survey was again conducted across the entire Asahi Europe & International Group. The satisfaction rate was 89 % in the Czech Republic and 90 % in Slovakia. OUR COMMITMENT FOR 2030 We will achieve a balanced share of women and men in the company management bodies. We make sure that everyone feels respected and motivated. STAFF NUMBER AND STRUCTURE is the number of employees Plzeňský Prazdroj had in 2023 in the Czech Republic is the number of employees Plzeňský Prazdroj had in 2023 in Slovakia 701 89 %satisfied employees in the Czech Republic All data are calculated as the average number of employees (1 January – 31 December of the given year). 810 / 1720 224 / 477 90 %satisfied employees in Slovakia 2530 Detailed information can be found in the Standards chapter. 130 BACK TO CONTENTS ↑↑ 132 133 We are a signatory of the European Diversity Charter (a voluntary initiative of companies and organisations founded to promote workplace inclusion and diversity) and the Diversity Charter in the Czech Republic and Slovakia, where we are also ambassadors. Diversity and Inclusion At Prazdroj, we are committed to treating all employees equally, regardless of their differences, and we aim at creating a work environment that is based on respect and equality and where everyone can develop their full potential. We strive to apply the principles of diversity and inclusion not only in our breweries and offices, but also in the places where our beverages are served. NEW GUIDELINE: EQUAL TREATMENT AND PROTECTION AGAINST DISCRIMINATION Diversity and inclusion are strategic priorities for our company. As part of the international LEAD Network initiative, we are committed to promoting gender diversity and inclusion in the European retail and packaged consumer goods sector. The most important aspects of our commitments are also defined by the new guideline entitled Equal Treatment and Protection against Discrimination and adopted by Asahi Europe & International in 2023. The Directive clearly defines unacceptable behaviour such as harassment, discrimination, victimisation, bullying and mobbing, and sets out the roles and responsibilities of employees and managers in preventing these situations and dealing with them, should they occur. At Prazdroj, we have a steering committee responsible for diversity and inclusion, whose strategic management is provided by members of top management, for whom this area is a top priority. The strategy implementation is then ensured by a company-wide Diversity Task Force including representatives of different departments, which ensures that the specific needs of all individual parts of the company are reflected. Cooperation and exchange of experience in the areas of diversity, equality and inclusion is facilitated by our membership of the D&I Shapers platform. This platform helps connect and coordinate companies' efforts in the field of gender diversity and inclusion, as well as in other areas. of members of the company board in 2023 were women 35 % of members of the company management in 2023 in Slovakia were women of members of the company management in 2023 in the Czech Republic were women 23 % 35 % LEAD NETWORK D&I SHAPERS COLLECTIVE BARGAINING AGREEMENT AND OTHER GUIDELINES The new collective agreement, which came into force on 1 January 2023, mainly regulates the working, wage and social conditions and claims of employees at Plzeňský Prazdroj Czech and Plzeňský Prazdroj Slovakia. It was signed by representatives of the employer and the trade unions and was valid until 31 December 2023. The agreement specifies benefits for all employees, whether full-time or part-time, who are on permanent or fixed-term employment contracts with a contract term length of more than one year. This includes pension scheme and life insurance contributions, five weeks' holiday and allowances for health, sport, culture, recreation, transport and education. In addition, our employees can also take advantage of product discounts and promo events offered by our partner companies. The Proud mini brewery joined the Pink Boots Collaboration Brew Day for a third time by brewing a  special Raise Your Glass APA beer based on a  recipe by our brewer Lenka Straková. The event is held on the occasion of International Wom- en's Day to support and celebrate women in the brewing industry, symbolized by pink boots. As part of our support for diversity and inclusion, we also engage with the LGBTQ+ community. A group from Plzeňský Prazdroj also took part in the Prague Pride procession in 2023. Our experimental brewery, Proud, joined the activities with beer in special rainbow cans and with its non-alcoholic Proovan beverage. Detailed information can be found in the Standards chapter. BACK TO CONTENTS ↑↑ The internal regulations that formulate the basic principles of employee remuneration have been discussed with the trade unions. At the same time, a four-member committee has been appointed comprising the CEO, the CFO, the HR Director and management representatives responsible for remunerations and benefits. This committee makes decisions on strategic issues and outcomes that will be reflected in employee remuneration. Key aspects are consulted with the company management. Employee remuneration is based on a performance evaluation system according to Korn Ferry talent assessment and development methodology, consulted on the level of Asahi Europe & International for senior positions. Another guideline we follow is the Compensation and Employee Benefits Policy. This guideline of Prazdroj sets out the procedures and rules for determination of the form and amount of wages and other employee benefits. The guideline further ensures that these practices are consistent with our compensation and benefits strategy while complying with applicable legislation, the collective bargaining agreement and other regulations. EQUAL SALARY FOUNDATION EQUAL SALARY: A FAIR REMUNERATION SYSTEM The emphasis on equal access and equal standards regardless of gender is a fixed part of our corporate philosophy. A key role in this is played by our system of employee development and their remuneration. To make sure we pay fair wages to our employees, we have undergone an independent audit as part of our Equal Salary certification. As part of the audit, the Swiss Equal Salary Foundation together with the audit firm PwC examined our processes, interviewed employees and analysed remuneration data in detail. In early 2023, we received the certification confirming that the wages we pay to men and women are in line with best employer practices and that we reward employees purely on the basis of their qualifications, skills and contribution they bring to the company. The certificate also guarantees that our gender pay gap does not exceed 5%. Prazdroj is one of four companies in the Czech Republic and one of 150 companies in the world that have won this prestigious certificate. This success underlines our long-standing commitment to creating a fair and equal working environment, but also places us among the world leaders in fair pay. We also promote diversity and involvement of women in the company by helping our female employees combine parenthood and career. is the difference in the wages we pay to men and women 5 % WE KEEP IN TOUCH WITH EMPLOYEES ON PARENTAL LEAVE We strive to make our employees feel part of the company even during their maternity and parental leave. The Stay in Touch program allows them to stay up-to-date on company news thanks to a company newsletter, or participate in webinars and online training courses. We have a special Facebook group for parents and they can also take advantage of company benefits such as Christmas allowances, preventative healthcare and holiday vouchers. We support alignment of their job- and family-related responsibilities through part-time work and flexible working hours. If they decide to return to work before their child is three years old, we provide an allowance for pre-school childcare. EDUCATION For us, training and development represent a major investment in our employees. We have created a system where our employees manage the development of their own competencies and skills themselves, with their managers acting as their coaches. Natural experience and knowledge sharing is organised through workshops and expert discussions. We share information about educational activities and their topics through our To Health and Development! newsletter. We follow the EmployeeTraining and Development guideline, which sets out the principles and procedures for providing training and development activities at Prazdroj. We strive to provide employees with the necessary expertise, skills and abilities for their current or future positions in accordance with the needs of the company. We follow the 70–20–10 principle, which includes 70% onthe-job training, 20% mentoring and coaching, and 10% formal training. The development of our employees is based on multiple pillars: statutory and mandatory training, onboarding programs for newcomers and advanced development to meet individual needs and company goals. on-the-job training 70 % V 134 135 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 136 137 19 All new employees complete the onboarding programme "Welcome to Prazdroj", which is part of the Academy CZ & SK and is also available in digital format. In 2023, 119 newcomers went through it. All mandatory training courses are interactive and include practical demonstrations. Employees can further develop their potential within the framework of their individual development plans (IDP). The range of activities is based on the most frequently requested educational areas. In 2023, 837 professional and statutory training courses were held, totalling 16,779 hours of training. participants in the Leadership program 232 newcomers were welcomed in Prazdroj Managerial skills: Employees showed great interest in the Leadership development programme, which was attended by 232 colleagues, and the Mentoring programme, which was open to 57 participants. An important part of skills training is represented by the comprehensive PROLEAD project management programme, which was attended by 61 employees. The aim is to train as many people as possible who participate in, commission or lead projects. Digital development, well-being, mental health and language learning: In this area, we organised 36 webinars attended by 1,127 people. For online education, we use the GoodHabitz learning platform, which offers up to 150 courses. A total of 100 people actively worked on their development using this platform. Our employees were also zealous attendees of our language courses, through which our company supported 170 male and female staff members. Technical skills: We also provide very specific and specialized professional training courses. These include MiBi microbiology training for production workers, the Logistics Academy and SixSigma. These are intended for senior positions in production who work on their own process efficiency projects (reduction of beer losses, etc.). people attended 36 webinars 1127 HOURS OF TRAINING WERE COVERED ON AVERAGE BY EACH PRAZDROJ EMPLOYEE IN THE CZECH REPUBLIC AND SLOVAKIA IN 2023. THIS IS ALMOST 20% MORE THAN IN THE PREVIOUS YEAR. 119 Diversity and inclusion: We are also focused on raising our employees' awareness of social issues such as diversity and inclusion, as well as leadership and team development. These topics were also featured on our “Inspiration" show, where our Director of Corporate Relations interviewed interesting guests live, shared their stories and discussed current trends in business. This programme was followed by a  new format "Purpose Talk", which aims to reflect on the deeper purpose of business, which goes beyond simply generating profit and includes, for example, a positive impact on society, the environment or a specific community. Through these conversations, we want to inspire and motivate employees to identify themselves with our corporate values and actively apply them in their work. company leaders attended diversity and inclusion workshops 207 BACK TO CONTENTS ↑↑ 138 WELL-BEING Physical, mental and social well-being has a firm place in the strategy of Plzeňský Prazdroj, because the overall satisfaction of employees fundamentally affects the company's performance. As part of the To Health! project, employees have the opportunity to benefit from various activities and services focused on all three of the above areas. We promote social health by maintaining quality interpersonal relationships and interactions. Employees can take advantage of a wide range of activities, including but not limited to sports or volunteering. We organise Family Days at the breweries, where hundreds of colleagues with their families share time together. In body care, for example, we focus on a healthy lifestyle through our webinars. For example, how to cope with the negative effects of sedentary work, poor quality sleep or lack of physical activity. This is the sixth year we have participated in the Bike to Work! challenge and the second year of our participation in the 10,000 Steps Challenge. We organize badminton and volleyball tournaments for employees, and we participate in running and other sporting events together. The Birell Grand Prix, for example, is designed for fans of running. Approximately 600 participants attended dozens of sporting activities across all lo- cations. Other activities focus on enhancing psychological well-being. We are a member of the coalition of companies of the Mental Health League. Thanks to this our male and female colleagues can participate in online conversations with experts working in different areas of mental health every month. participants took part in sporting activities across regions approx. 600 To facilitate a work-life balance, we allow employees to work from home if the nature of their work so permits. The terms and conditions are set out in the Temporary Work from Home Directive and the Procedure for the Home Office OHS Management Directive. YOU CAN COUNT ON US As part of the assistance programme called You can count on us, employees and their family members have access to psychological, financial or legal counselling. The helpline is available 24 hours a day, consultations are completely anonymous and take place in Czech for Czech Prazdroj and in Slovak for Slovak Prazdroj. 139 BACK TO CONTENTS ↑↑ 141 ULÉKAŘE.CZ The uLékaře.cz assistance programme provides people from Prazdroj with an opportunity to have online consultations with physicians and helps them arrange a personal examination if needed. VOLUNTEERING Allouremployeesonemploymentcontractscandedicatetwoworkingdaysa yeartovolun- teeractivities.In2023,weorganized31volunteeractivitiesinwhicha totalof419employees participated.These included cleaning up around the brewery, tree planting, revitalization of the landscape, work in a hop field, organization of material collections for people in need, and taking care of seniors. volunteers in the Czech Republic volunteers in Slovakia 305 GOGRADUATES The GoGraduates project is a programme aimed at developing of future leaders. The participants in this two-year programme are given an opportunity to complete internships in a variety of positions tailored to their interests and career plans. The program also includes international rotation of employees allowing our people to take an internship abroad at an Asahi Group partner brewery. Many graduates of the programme already successfully use their experience in key management positions. In 2023, we had 12 trainees in the GoGraduates programme. INTERNSHIPS Every year our company opens positions for interns. Yearly internships are scheduled for one whole year, 20 hours per week. Summer internships, which take place during the summer holidays, are full-time work. The internships include projects that significantly contribute to Prazdroj operations. Interns present their results directly to the company management. In 2023, the yearly internships included 20 students and the summer internships were used by 4 interns. COOPERATION WITH SCHOOLS We actively cooperate with secondary schools and universities. We organise lectures, workshops, open days and engage in long-term practical projects for students. We also provide consultations to students working on their bachelor and master theses. Our long-term partners include the Prague University of Economics and Business, the Prague University of Chemistry and Technology, the Technical University of Ostrava, the Slovak Technical College, the Slovak University of Agriculture in Nitra, the Bratislava University of Economics and others. We also participate in job fairs and conferences such as YouthSpeak Forum and Big Step. trainee positions covered by the GoGraduates program 12 114 DEVELOPMENT OF AND SUPPORT FORYOUNG TALENTS 140 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 10 10 5 Number of injuries in 2021 CZ 8 SK 2 Number of injuries in 2022 CZ 9 SK 1 Number of injuries in 2023 CZ 5 SK 0 In 2023, the number and severity of injuries was reduced significantly. We recorded five accidents requiring temporary absence from work in the Czech Republic, and no such accident in Slovakia. Compared to 2022, the injury rate was reduced by a WHOLE 50 %. members of the management of Plzeňský Prazdroj completed the I care programme 36 HEALTH AND SAFETY FIRST SAFETY TRAINING At Prazdroj, we follow the Occupational Health and Safety and Fire Protection Directive and the Management of Chemical Substances Directive. All of our employees and contractors have received occupational health and safety training, which is mandated by legislation and focuses on identified workplace-specific risks. The staff of the distribution centres and technical service department, in cooperation with an external consultant in this area, familiarized themselves with the themes of environment protection, occupational health and safety and fire protection. In the year under review, we paid great attention to the work of external companies, especially in operations, where we have a work permit system in place for them. In 2023, we also opened a new I care training programme. This is an application where identified risks of a technical nature are entered, such as missing protective barriers, non-compliances in electrical installations, stairs, buildings, or incorrect work procedures, etc. The training was attended by 36 members of the Plzeňský Prazdroj management. Employees also receive regular training for drivers and first aid training. A TOTAL OF 82 EMPLOYEES ATTENDED A SPECIAL SAFETY KNOWLEDGE AND SKILLS DEVELOPMENT PROGRAMME, THE SAFETY CAMPS EMERGENCY RESPONSE TRAINING As in previous years, we held a series of practical briefings in our breweries in 2023. For example, an ammonia leak disposal drill took place at the Pilsen Brewery, attended by fire protection units and the crisis staff of the Plzeň Municipal Council. The exercise was based on simulated uncontrollable leakage of this dangerous substance from the brewery. The main objective of the exercise was to test cooperation between the fire protection units and the personnel operating the cooling technology in the brewery. At the same time, our staff readiness to respond to emergencies, including evacuation and communication security, was tested. The exercise also included activation of the alarm system and sirens in the brewery area, which informed the employees and the surrounding area about the ongoing exercise. The management of occupational health, safety and fire protection in the Plzeňský Prazdroj Group falls under the Technical Director's department and is internally referred to as the Safety Management System (SMS). In 2023, safety was targeted by a total of 211 internal audit inspections in the Czech Republic and 125 in Slovakia. Significant projects included the Job Risk Analysis (JRA) designed for teams tasked with identifying and addressing potential workplace hazards in order to prevent accidents and injuries. Another important aspect is the engagement all our employees, who are involved in a range of activities to promote safety. In 2023 alone, they conducted more than 7,700 safety observations and recorded over 800 "near misses". Thanks to these activities, we can boast of long-term success in eliminating potential risks and introducing new measures that are to reduce the number of occupational injuries. In 2023, our main focus was on pedestrian protection in breweries and distribution centres, the installation of barriers and completely new signage. We also implemented new requirements of Asahi Europe & Interna- tional's internal guidelines, for example on working at heights, and analysed the risks faced by our sales teams directly at their workplaces. Detailed information can be found in the Standards chapter. 142 143 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ The Plzen Brewery has always provided its employees with better working conditions than usual. As FAR BACK as the late 19th century, it introduced the eight-hour working day, had its own sickness fund to provide health care for employees and their families, and offered pension insurance and housing allowances. The company even built apartment buildings for its employees. And of course, we can 't forgetthefreebeerben efit. ETHICS Honest and ethical behaviour, both within the company and in relations with suppliers and customers, is the basis for building the reputation of Plzeňský Prazdroj and the entire Asahi Group. The principles of such conduct are set out in the Company's Ethics guideline. The guideline is binding for all male and female employees, including seasonal workers. They were all familiarized with it during their onboarding process and their knowledge is reinforced annually through the "Company Ethics" training. Employees and third parties can report unethical conduct by phone or through an online form to an anonymous ethics hotline operated by an external contractor. All these reports are investigated by an independent team. Employees may also report misconduct to their supervisor, a member of the Ethics Committee, the Ethics Resolution Team or the Ethics Officer. The whole process is described in detail in a specific whistleblowing guideline. PRAZDROJ STARS We want our employees to be committed, proactive and responsible, and to support and motivate each other. To encourage this behaviour, we introduced the possibility to nominate colleagues or teams for the Prazdroj Stars awards in March 2022. The award is granted to employees who have made a significant contribution to business results or to improvement of the corporate environment. Nominations are judged monthly by a panel of senior managers and the award is presented to the winner by the CEO. The awarded individuals and teams advance to the next round, where the management selects a project to represent Prazdroj in the global Asahi Group Philosophy Awards competition. In 2023, Prazdroj was represented by the FOR HOPS project, which won the Audience Award in the world finals. IN 2023, WE DID NOT RECORD ANY COMPLAINTS CONCERNING UNETHICAL BEHAVIOR. employees were granted the Prazdroj Stars award in 2023 110 144 145 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 146 responsibilityWE DO NOT WANT PEOPLE TO DRINK MORE, WE WANT TO TEACH THEM TO DRINK BETTER. WE EXPAND OUR PORTFOLIO OF NON-ALCOHOLIC BEERS, WE WORK IN THE FIELD OF EDUCATION, AND WE FAIRLY INFORM CONSUMERS ABOUT THE COMPOSITION OF OUR PRODUCTS. WE ARE CONSISTENT IN OUR ADHERENCE TO THE CODE OF CONDUCT AND OUR INTERNATIONAL COMMITMENTS. WE ALSO BEHAVE RESPONSIBLY IN OUR MARKETING COMMUNICATIONS. X no problem. there is something for everyone´s taste in our portfolio. one more non-alcoholic, please! BACK TO CONTENTS ↑↑ 149148 As a leading beer producer in the Czech Republic and Slovakia, we are committed not only to producing the highest quality beer, but also to promoting responsible and moderate alcohol consumption. We are actively involved in education and a number of different initiatives in the area of excessive drinking prevention. In 2023, we launched a new project called Responsible Drinking Ambassador, in which all Prazdroj employees can participate and together contribute to responsible consumption of our products. Those interested will complete a course that will provide them with important knowledge and tools needed to recognize the signs of alcohol abuse as well as information about its negative impact on health. Prevention of underage drinking is in- cluded. As ambassadors, employees take an active role in promoting healthier lifestyles, and the course provides them with the necessary skills to have sensitive conversations with colleagues, friends or family members who may need help. In addition to preventive programmes, the company's main priority is self-regulation, which at Plzeňský Prazdroj is one of the strictest in the industry. Education and Awareness  We have a sophisticated system of education about alcohol and responsible drinking for our people. We train and educate not only all our employees, but also cooperating agencies, business partners and other stakeholders. Every employee of Plzeňský Prazdroj undergoes Alcohol Alphabet training focused on responsible drinking. In addition, marketing staff receive special training on Responsible Marketing. OUR COMMITMENT FOR 2030  we will increase the share of soft drinks in our offer to 25%. of Prazdroj employees have gone through the Alcohol Alphabet 100 % we are continuously expanding our portfolio of non-alcoholic brands to offer new options to consumers in line with our strategy. 148 EDUCATION AND AWARENESS 148 RESPONSIBLE DRINKING AMBASSADOR 150 COMMERCIAL COMMUNICATIONS  151 PREVENTION 153 INTERNATIONAL COMMITMENTS 154 NON-ALCOHOLIC DRINKS 156 BREAKING DOWN PREJUDICES BACK TO CONTENTS ↑↑ 150 151 Our goal is to change this public attitude. We are therefore involved in a number of projects that highlight the problem and seek to address it. One of these is the Respect 18 contact campaign, now in its eleventh year, which is aimed at preventing underage drinking. The project is implemented in cooperation with the Magistrate of the City of Plzen, the Centre for Drug Prevention and Therapy, the Podané ruce Association, the Moravian-Silesian Region and the Prague 13 and Prague 14 city quarters. In 2023, we visited six different events in the Czech Republic and addressed more than 17,000 adults through an entertaining and educational programme at our stand. We also actively communicate the topic on social media and online, where people can share their experience and ask questions, and have them answered by experts. Through the Myths and Facts campaign on the Let's Talk About It Instagram profile, we have addressed over 87,000 people. In Slovakia, we presented our project Respect 18, on which we cooperate with experts from OZ Prima, at six events for families with children in 2023. More than 6,000 adults were addressed by the contact campaign. Together with Barbara Kuchárová, psychologist and project sponsor, we continue to spread awareness over social media, where we use educational videos to open up the topic of how to talk about alcohol with teenage children. More than 91,000 people actively participated in the project through the contact or online campaign. of our TV ads in 2023 met the rule of 75 : 25 Commercial Communications We take a responsible approach to marketing and regularly evaluate the impact of the self-regulatory rules we follow. Self-regulation allows us to react quickly to changing trends and requires no investment from public budgets. A sophisticated internal Code of Conduct compliance system controls all commercial communications, which are approved by our internal Accountability Committee. Compliance with the External Code is then ensured by the Advertising Council representative on the Committee. In 2023, its members assessed over 580 proposals for the Czech and Slovak markets. In 2023, 99.8% of our TV ads met the 75 : 25 rule (at least 75% of the target audience of the programme in which our advert was shown was over 18 years old). In our print, radio and digital communications, this rule was met by all contributions without exception. 99.8 % In 2023, we did not receive any complaints about our advertising in the Czech Republic or Slovakia. COMMERCIAL COMMUNICATIONS CODE WE ADHERE TO OUR CODE OF COMMERCIAL COMMUNICATION, WHICH CONTAINS A NUMBER OF STRICT RULES THAT GO BEYOND THE LEGAL REQUIREMENTS. In addition, Plzeňský Prazdroj's  online communication is governed by the Digital Guiding Principles, which include, among other things, important rules regarding website and social network content, not only the content in our own channels, but also that created in cooperation with influencers who commit to our principles. Compliance with digital communication rules is regularly audited at the level of Asahi, our parent company. DIGITAL GUIDING PRINCIPLES Prevention of Underage Drinking Although the legal age for alcohol consumption in our country is 18, some young people start drinking at high school or even at a younger age. This can lead to a number of serious problems. Moreover, people in the Czech Republic and Slovakia take a very tolerant attitude towards underage drinking. REŠPEKTUJ18.SKRESPEKTUJ18.CZ BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 152 153 Drink Sensibly and other prevention programs We also promote moderate alcohol consumption through our websites napivosrozumem.cz in the Czech Republic and promileinfo.sk in Slovakia, which also includes a calculator from the non-profit organisation Sananim. It allows people to calculate how long after drinking alcohol they can safely start driving. In line with our "Proud To Be Clear" commitment, we are raising consumer awareness by publishing a full list of nutritional values and alcohol content not only on the packaging of our products themselves, but also on this website in the Beer & Nutrition section. napivosrozumem.cz promileinfo.sk During the summer months, we supported free expert advice and breath testing offered by Sananim experts at the Promile INFO booth at eight summer festivals in the Czech Republic. Nearly 6,000 visitors used this service. As a member of the Czech Brewery and Malthouse Association, we also actively support events focused on alcohol prevention behind the steering wheel through the Driving, Drinking Non-Alcoholic Beer project. In 2023, 112,285 people were addressed in this way in cooperation with the Police of the Czech Republic and the Czech Organisation for road safety (BESIP). 112,285 In Slovakia, the Slovak Beer and Malt Producers Association promotes responsible behaviour of car drivers, bikers, cyclists and scooter riders. As part of the traffic prevention campaign Be Sensible, implemented by the Slovak Police and the Slovak Road Safety Organisation (BECEP), more than 40,000 drivers were checked and those who were found to be acting responsibly were rewarded with a non-alcoholic beer. A year-round accountability campaign was running on social media, reaching more than 923,000 people on the Priatelia Piva Facebook page and more than 1,362,900 people on the Polícia SR Facebook page. Our International Commitments We continue to fulfil our international commitments in the area of responsible communication of our products, prevention of underage drinking and disclosure of information on the nutritional values of our products, which Plzeňský Prazdroj has committed to in the Czech Republic and Slovakia as a member of the Asahi Group. 1. By 2024, we will have a clear symbol on all our alcoholic products or a verbal warning that the products are not suitable for minors. By 2023, 88 % of our alcohol beverage packages already met this commitment by displaying responsibility icons. 2. We will not even target youth and children with our marketing communications of non-alcoholic variants of our alcoholic prod- ucts. We already succeeded in meeting this objective in 2023 through the training of our employees and agencies and consistent application of the rules of the Code of Commercial Communication, which contains these provisions. 3. We will strengthen the current measures to prevent minors from accessing our content in the digital environment. All our alcohol brand channels include an age verification mechanism for access by people over 18 years of age only. Our channels also meet the requirements defined by the Digital Guiding Principles commitment. 4. We will invite retailers, wholesalers and distributors to work with us on the implementation of the most effective consumer age verification procedures. We are succeeding in this goal through our involvement in the Don't Be Angry, Prove Your Age project. 5. We will invite retailers from e-commerce and delivery services to join us in developing global standards for online sales of al- cohol. We are actively working towards this goal. In the coming period, we will also focus on delivering on the points within the IARD's International Commitment, in particular as concerns the introduction of clear symbols on all our alcohol-containing products warning at-risk groups of minors to avoid drinking alcohol. As part of responsible marketing, we also support the initiative of the International Alliance for Responsible Drinking (IARD) called Influencer Pledge. This commitment, which we share with our partners and influencers, ensures that the content associated with our brands promotes responsible drinking, addresses adults only and adheres to the highest ethical standards. In order to expand the standards of responsible alcohol sales, we also focus on working with our retail, supermarket chain and e-commerce customers. Our commitment in underage drinking prevention with the International Alliance for Responsible Drinking (IARD) 144,311 83,557people participated in Slovakia people were actively involved in our preventive programmes in the Czech Republic BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 154 155 SR 13.8 % Our commitment to inform consumers "Proud to be Clear" We list the alcohol volume and energy content (calorific values) of our alcoholic and non-alcoholic products on all bottles and cans sold in the European Union. In addition, the entire nutritional profile (the Big 7) is shown on the secondary and tertiary packaging. All alcohol-containing products in our portfolio also carry at least one of three voluntary labels promoting responsible behaviour on their packaging. Non-alcoholic drinks Share of non-alcoholic beverages in the Prazdroj product portfolio in 2023 2022 2023 Proud To Be Clear In 2023, Birell introduced new limited-edition radlers with Mango & Lemon, Blueberry & Cranberry, Tangerine & Yuzu, Pear & Quince and Apple & Plum flavours. All variants have a reduced sugar content and, like all Birell drinks, are made without the use of artificial sweeteners, colours or preservatives. Birell is often the first choice for many adult consumers looking for a refreshing drink not only while driving, but also while PLAYING SPORTS or sitting with friends. CR 11.5 % SR 14.2 % CR 11.5 % The sales volumes of our non-alcoholic portfolio products remained the same in both markets as in the previous year. The slight decline in the share in Slovakia was due to the recovery of the traditional beer market after the covid hiatus. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 156 157 For the production of non-alcoholic Birell beer, specially cultivated yeasts are used which have a naturally lower ability to produce alcohol during fermentation. This yeast type only produces a minimal amount of alcohol, but at the same time creates the characteristic beer aroma and taste. The fermentation is CARRIED OUT at lower temperatures and under strictly controlled conditions to ensure that the alcohol content remains below a set limit. Yeas ts have to be watched to m akesuretheydon'tgett o o active. Breaking down prejudices on soft drinks  At Prazdroj, we are committed to responsible drinking, and one of our goals is to oppose prejudices against people who opt for non-alcoholic variants of adult alcoholic beverages. In the non-alcoholic Birell campaign, which we launched in 2023, we promote the attitude that fun doesn't have to be associated with alcohol consumption and can be fully enjoyed even without drinking alcohol. 1/2  The results of our survey show that nearly 50 % of the population have encountered social pressure making them drink. To resist this pressure, people make up socially acceptable lies in front of their friends or try to ignore their comments. Some prefer not to go out at all. The interest of the Czech market in flavoured non-alcoholic beers is growing, their share has doubled over the last five years and now accounts for 8 % of packaged beer sales. In Slovakia, the demand in this area has been relatively stable over recent years, with flavoured non-alcoholic beers accounting for around 13% of sales. A significant contributor to this growth is represented by new flavours, which attract customers who have not tried flavoured non-alcoholic beer before. source: NIQ 8 % This initiative is to address people who prefer a healthier lifestyle and contribute to changing the perception of soft drinks in society. With the campaign, we attend various sporting and social events, engage influencers and work to deliver on our promise to give experiences to and promote meaningful networking among people through our products. fun doesn't have to be associated with alcohol consumption and can be fully enjoyed even without drinking alcohol. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ BACK TO CONTENTS ↑↑ communitiesWE CONNECT PEOPLE IN THE REGIONS WHERE OUR BREWERIES ARE LOCATED. WE SUPPORT COMMUNITY LIFE, MAINTAIN OLD TRADITIONS AND CONTRIBUTE TO THE CREATION OF NEW ONES. WE DEVELOP BEER CULTURE AND IMPROVE OUR SURROUNDINGS. WE TRAIN PUB AND RESTAURANT OWNERS TO MAKE SURE THEY HAVE THE BEST BEER POSSIBLE AND THAT THEIR BUSINESS WORKS AS IT SHOULD. XI Our big heart is here for everyone. We are un ited byaffec tion for ourcraft. 158 161 BACK TO CONTENTS ↑↑ 160 PARTNERSHIPS 164 PLZEŇSKÝ PRAZDROJ FUND 165 BREWERY VISITOR RATES 166 DEVELOPMENT OF CZECH BEER CULTURE 169 STAR FOR BREWERS 170 FRESH OUTLET PARTNERSHIPS WITH CITIES AND REGIONS Plzeňský Prazdroj has long been embedded in the regions in which it operates its breweries. These partnerships include various cultural and environmental activities that the brewery organises or participates in. As in previous years, the brewery signed a declaration of cooperation with the city of Plzen in 2023. Thus it can participate in projects such as the Festival of Freedom, Sportmania, Pilsner Fest, Plzen Day in the Senate and more. Many events were also held in the Velké Popovice region. In the spring, for example, the brewery held a celebration in honour of the brewery's founder, Baron František Ringhoffer. On this occasion visitors had an opportunity to explore the Baron Ringhoffer Landscape educational path and take part in the traditional local pork feast. The programme included the introduction of the brewery's new mascot, Rosa the Kid Goat. Further events held in Velké Popovice included two streetfood festivals and a Sausage Fest. The Radegast brewery organised the Radegast Feast and the Radegast Day. In Slovakia, the Šariš brewery participated in a cultural event at Šariš Castle and in a downtown sporting event, and supported an international sculpture symposium. Events of this type represent our continuous efforts to maintain local traditions and strengthen the community spirit in the region. BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 160 Last year we revitalized the Brewery Park in Velké Popovice.The park was pruned, some trees had to be cut down due to their age and disease and replaced with new plantings respecting the historical character of the park and the native plant species that are at home there. In addition to trees, decorative shrubs and perennial flower beds were planted. We also built new paths to make it easier for visitors to move around. Furthermore, the old gatehouse, which no longer served its purpose, was renovated and now offers refreshments and drinks to tourists, cyclists and locals, who can now enjoy them in the beautiful landscape of the park. A new enclosure for goats was built close to the gatehouse by the brewery's coopers. In Plzen, there is a developing project of a cycling path, which the Prazdroj brewery is building on its land and which will connect to the cycling paths of the city and the region. 162162 163 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ PLZEŇSKÝ PRAZDROJ FUND In 2023, Prazdroj decided to simplify its grant activities and united the public-benefit projects around its breweries - Prazdroj lidem (Prazdroj for the people), Kozel lidem (Kozel for the people), Radegast lidem (Radegast for the people) and Šariš ľuďom (Šariš for the people) into a new Pilsner Urquell Fund. IN ITS FIRST YEAR OF OPERATION, THE FUND SUPPORTED PROJECTS WITH CZK 1.6 MILLION IN THE CZECH REPUBLIC AND EUR 16,000 IN SLOVAKIA. We have strengthened our cooperation with the towns and villages around our breweries, which allows us to seek out projects that are longer-term in nature and bring significant positive change to these municipal communities. The grant committees now meet up to three times a year so they can respond more flexibly to current community needs. The fund supports a  wide range of projects, from environmental initiatives via restorations of tourist attractions to community events that revitalise the public space. The decisions are made by a team of three judges, always led by the manager of the brewery in question, who knows their region well. BREWERIES AND THEIR VISITORS Tourists from all over the world enjoy visiting the Plzeňský Prazdroj premises in Plzen. In 2023, the brewery was visited by approximately 530,000 tourists, which was an increase of 13% compared to the previous year. Growing interest in sightseeing routes and cultural events in the brewery area, as well as in the Brewery Museum and the Pilsen Historical Underground, seen by more than 67 thousand visitors, was recorded. Traditionally, the biggest tourist flow was directed to the Pilsner Urquell route, but the tour route of the Gambrinus brewery also saw a big increase in visitor rates. The Velké Popovice brewery recorded 125,000 visitors last year, which is 35% more than in 2022. The most frequent visitors were Czechs, Hungarians and Germans, while tourists from South Korea also returned after the covid hiatus. In addition to special tours showing the brewery history, visitors can also take part in the traditional Kozel Beer Days. The growing trend in 2023 was supported by the renewal of organised tourism after covid and an increased number of tourists from Asia. Nevertheless, most visitors still came from the Czech Republic, followed by Germans, Taiwanese and South Koreans. Last year´s numerous groups of foreigners also included tourists from America, Italy and Poland. The brewery also hosts various events, such as the traditional Summer at Prazdroj and food festivals. In 2024, Prazdroj plans to offer a new sightseeing tour as part of the Industry Open festival. It will allow visitors to take a glimpse into the industrial section of the brewery and get acquainted with the production technologies. 530,000 tourists from all over the world visited the Plzeňský Prazdroj premises in Plzen in 2023 35 %is the increase in visitors to Velké Popovice brewery in 2023 13 %is the increase in visitors to Plzeňský Prazdroj in 2023 164 165 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ BARRELS AND COOPERS In the cellars of the Plzen brewery, where Pilsner Urquell matures just as it did 181 years ago, the traditional pitching of large lager barrels takes place. This process of disinfecting the wooden barrels, which have a capacity of up to 40 hectolitres and weigh 800 kg, is carried out twice a year by a team of eight coopers. The applied pitch ensures that the beer does not take on unwanted aromas and flavours from the wood. The beer kept under the historical conditions is then not only used by our brewers for regular comparisons with the beer produced in the modern facility, but also can be tasted during brewery tours. WE DEVELOP CZECH BEER CULTURE Our growth, and thus the growth of our partner restaurants and pubs, has been significantly supported by our long-term cooperation with owners and operators and by our efforts to develop the Czech food service sector. We provide free of charge tapping technology to businesses, including tanks, glassware and outdoor seating equipment. We help with exterior renovations and interior transformations to make them more welcoming and to inspire guests to come back. We also have several development programmes for different types of businesses. Our Beer Gastro Academy (BGA) is the largest and most sophisticated training program for pub and restaurant operators in the Czech Republic. This two-day programme offers training to restaurant owners and operators in areas such as economy of operation, current food service trends, digital marketing and people management. Taproom staff receive training in tapping and beer care, including communication with guests, while chefs receive training in current culinary trends, efficient food preparation and understanding food costs. In the six years of the program's existence, which includes a two-year online hiatus during the pandemic, the BGA has been held live in approximately 450 pubs and restaurants, providing training to some 1,350 food service pro- fessionals. BGA participants report significant improvements in their operations, including an approximately 10% increase in beer sales, a  gross profit increase of 12% due to a  change in sales mix and proper menu design, and 10% savings in food costs due to efficient use of ingredients and properly designed menus. The program also leads to a 23% increase in the number of social media followers, which helps build their relationship with the business and attract new customers. 450 pubs and restaurants have been trained by our Beer Gastro Academy CHARITY AUCTION OF BEER-MADE DRESS Pilsner Urquell held its traditional charity auction, which raised almost CZK 520,000 to support the Paraple Centre charity, which helps people with spinal cord injuries. The most expensive item in the auction was a dress made of beer worn by Anya Geisler at the Karlovy Vary Film Festival (sold for CZK 126,242). The funds raised were used to provide a residential social rehabilitation service and to expand it by field service. The auction was held for the twelfth year and Prazdroj contributed almost CZK 22 million to wheelchair users. PROUD BREWERY IN MOVEMBER In 2023, we continued our successful cooperation with the Men Against Cancer Foundation, which runs the international Movember awareness campaign in the Czech Republic. Our non-alcoholic Proovan beer from the experimental Proud brewery was again available with a limited-edition label showing the moustache symbol of Movember. With every pint sold, we donated CZK 5 to support the prevention of prostate and testicular cancer. The total amount raised was CZK 86,828. THE COOPER'S CRAFT IS REGISTERED ON THE NATIONAL LIST OF INTANGIBLE ASSETS OF TRADITIONAL FOLK CULTURE. 800 kilograms is the weight of one wooden barrel 22 million crowns have been donated to the Paraple Center since the beginning of our cooperation with the charity 166 167 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 2% FOR THE NON-PROFIT SECTOR Slovak companies can use the opportunity to support the non-profit sector with two percent of their income tax. The largest part of the donation has traditionally gone to the Velký Šariš Community Foundation, the Prima civic association, with which we implement the Respect 18! project, and organizations dedicated to the prevention, diagnosis and therapy of FAS (fetal alcohol syndrome). Further support was received by the Hradba Šariš civic association and the fund under the Ekopolis Foundation, which focuses on adaptation measures in agricultural landscapes. HELPING NATURE AND COMMUNITIES In autumn 2023, we engaged in volunteer activities in the Czech Republic and Slovakia to help nature and human communities. A total of 62 Czech and 23 Slovak colleagues took part in cleaning up the natural landscape and making public spaces more beautiful. These activities included for example the Clean Up the Czech Republic and Clean Up Slovakia events. Volunteers focused on cleaning up the area around rivers and ponds, where they picked up hundreds of kilograms of waste. There was also the traditional event in Pustevny and we also helped in the social centre in Prešov and the Devínská Kobyla facility, where we helped restore biodiversity for goat breeding. FIRST AT SOURCE According to a survey by Plzeňský Prazdroj, one in three pubs is not sure of its continued existence. The educational portal First at Source is trying to help bring guests back to pubs and restaurants. This set of educational video courses offers advice on all aspects of running a pub – from beer tapping, via economics, cost savings and sustainability in operations and marketing to staff training. The program, with Zdeněk Pohlreich as its ambassador, had 2020 unique users in the Czech Republic in 2023. The program was also newly launched in Slovakia, where 341 people were trained in its first year. SUPPORT FOR TRADITIONAL VILLAGE PUBS According to our data, the number of village pubs has fallen by 15% in the last four years. To help, we run the Villages programme, which has invested nearly CZK 28 million over six years to support endangered village pubs. Pubs can use the support to improve their interior decorations and equipment, or to fund activities that will attract guests to them. Pubs are often the only meeting and social event venues in smaller rural communities and therefore their preservation is essential to local community life. STAR FOR BREWERS Once again, we awarded the prestigious Brewers Star award to pubs and restaurants that provide excellent beer care. Our inspectors regularly evaluate the entire process, from storage via cleanliness of the beer lines and glassware, to proper tapping techniques. In 2023, a record 748 pubs and restaurants in the Czech Republic won this award, which is 162 more than last year. In Slovakia, 165 pubs were awarded, 48 more than in 2022. 28 MILLION CROWNS We strive to make quality tap beer available to as many pub and restaurant visitors as possible. And not only in cities, but also in villages. Therefore, we strive to help operators and staff, through long-term and systematic support and training programs, improve their service and thus better win over their competitors. Last year alone, we trained the staff of 1,700 pubs and restaurants. The largest increase in the number of businesses awarded the Brewers Star was in towns and villages with 5 to 20,000 inhabitants, where the number increased by 43% to a total of 144 establishments. Almost 60 pubs were awarded in villages with up to 5,000 residents. The Brewers Star not only acknowledges excellent work of pub keepers, but also helps guests find the best pubs, giving selected establishments a significant competitive advantage. 43 % Increase in award-winning businesses in small towns and villages 168 169 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ Plzeňský Prazdroj was founded one hundred and eighty-two years ago thanks to the initiative of the Pilsen townspeople themselves. They were not satisfied with the quality of the local beer and were not going to accept it. So they joined forces, put together the necessary funds and founded a brewery that later made their town famous all over the world. Whenpeo p le get together, they can do morethantheycan ev en imagine. Fresh Outlet REDUCING VISUAL SMOG Thanks to the Fresh Outlet programme, Plzeňský Prazdroj has helped transform the appearance of 6,000 pubs and restaurants, significantly reducing visual smog and increasing their attractiveness, since 2020. The project focuses on improving the exteriors of businesses by removing unnecessary advertising and illuminated banners, resulting in energy savings and reduced plastic consumption. The new illuminated pub designations have already saved pub operators almost 580,000 MWh of electricity over the project lifetime, which roughly equals the electricity consumed by 200 households in 12 months. 170 171 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 172 BACK TO CONTENTS ↑↑ it's work that has to be done. Every litre, kilogram, hectare, kiloJoule we consume or produce is transparent. IN OUR REPORT WE REFER TO SELECTED INDICATORS OF THE INTERNATIONAL REPORTING STANDARDS OF THE GLOBAL REPORTING INITIATIVE (GRI). IN PREPARATION FOR THE NEW EUROPEAN CSRD DIRECTIVE, WE HAVE ALSO ADDED SOME INDICATORS ACCORDING TO THE ESRB STANDARDS. Standards 174 175 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ GRI index (content index) STATEMENT ON THE USE OF STANDARDS Plzeňský Prazdroj reports information listed in this GRI Content Register for the period 1 January 2023 – 31 December 2023 with reference to GRI standards. GRI STANDARD VERSION 1 GRI 1: Foundation 2021 SECTOR GRI STANDARDS None GRI STANDARDS INDICATORS INFORMATION LOCATION NOTES GENERAL DISCLOSURES (GRI 2) ORGANISATION AND REPORTING GRI 2-1 Organisation data About Us, About the Report, Annual Reports CZ and SK GRI 2-2 Entities included in the sustainability report About Us, About the Report GRI 2-3 Reporting period, reporting cycle and contact details About this Report 1 January - 31 December 2023 GRI 2-4 Modifications to previously published information Carbon neutrality, GRI data - Emissions GRI 2-5 External verification About this Report ACTIVITIES AND STAFF GRI 2-6 Activities, value chain and other business relationships Introduction, About Us, Behind the Gates of Breweries, Ingredients, Communities GRI 2-7 Staff People, GRI data - People 2-7 b III - workers without fixed working hours are reported as other workers under GRI 2-8. GRI 2-8 Other workers GRI data - People ADMINISTRATION AND MANAGEMENT GRI 2-9 Structure and composition of organisation administration and management About Us, Strategy, Annual Reports CZ and SK GRI 2-12 The role of the supreme administrative and management body in overseeing impact management Strategies GRI 2-13 Delegated responsibility for impact management About Us, Strategy GRI 2-14 The role of the supreme administrative and management body in sustainability reporting About this Report GRI 2-17 Collective knowledge of the supreme administrative and management body Strategies GRI 2-18a Supreme management body performance evaluation Strategies GRI STANDARDS INDICATORS INFORMATION LOCATION NOTES STRATEGIES, POLICIES AND PROCEDURES GRI 2-22 Sustainable Development Strategy Statement Introduction, About Us, Strategy GRI 2-23 Commitments to Policies About Us, Strategy, People, Responsibility https://www.prazdroj.cz/nas-pribeh/ dulezite-listiny GRI 2-24 Applying Commitments to Policies About Us, Strategy, People, Responsibility GRI 2-25 Processes to remedy negative impacts About Us, Responsibility GRI 2-26 Mechanisms for consultation and communication of suggestions People - Ethics, Responsibility - Commercial Communications https://www.prazdroj.cz/nas-pribeh/ dulezite-listiny GRI 2-27 Compliance with laws and regulations About Us There were no breaches of legislation during the reporting period. GRI 2-28 Membership in associations About Us - Stakeholders STAKEHOLDER INVOLVEMENT GRI 2-29 Approach to stakeholder involvement About Us - Stakeholders, Responsibility, Communities GRI 2-30 Collective Bargaining People The Collective Bargaining Agreement applies to all employees of Plzeňský Prazdroj, a.s. and Plzeňský Prazdroj Slovensko, a.s. MAJOR TOPICS (GRI 3) GRI 3-1 The process of identifying major topics Strategy, About us Further analysis of topic significance will already follow the principle of double significance and ESRS standards. GRI 3-2 List of major topics About Us - Materiality Matrix, Strategy - Pillars of Strategy GRI 3-3 Management of major topics Strategies, text of chapters The approach to management of major topics is described in the relevant chapters of this report. ECONOMICS MAJOR TOPIC: ECONOMIC PERFORMANCE (2016) (GRI 201) GRI 201-1 Direct economic value created and distributed About Us, Annual Reports CZ and SK Key financial indicators can be found in the Annual Reports.GRI 201-3 Compulsory contributions to pension funds and other contributions to supplementary pension schemes Annual Reports CZ and SK GRI 201-4 Financial support from the state Annual Reports CZ and SK MAJOR TOPIC: MARKET PRESENCE (2016) (GRI 202) GRI 202-2 Proportion of managers recruited from local communities For the Czech and Slovak Republics, the ratio is 75% for company management and 95% for senior management. MAJOR TOPIC: INDIRECT ECONOMIC IMPACTS (2016) (GRI 203) GRI 203-1 Infrastructure investments and supported services Ingredients, Communities GRI 203-2 Significant indirect economic impacts Ingredients, Packaging, People, Communities MAJOR TOPIC: PURCHASING PRACTICES (2016) (GRI 204) GRI 204-1 Share of expenditure on local suppliers Ingredients, Packaging 99% of packaging material suppliers are from the EU, 1 supplier is from the UK. 100% of barley and 88% of hops come from domestic suppliers in the Czech Republic and Slovakia. 176 177 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ GRI STANDARDS INDICATORS INFORMATION LOCATION NOTES MAJOR TOPIC: MEASURES AGAINST CORRUPTION AND ANTI-COMPETITIVE BEHAVIOUR (2016) (GRI 205, 206) GRI 205-1 Activities assessed for corruptionrelated risks About Us - Company Ethics https://www.prazdroj.cz/nas-pribeh/ dulezite-listiny GRI 205-2 Communication and training on anticorruption measures People - Ethics GRI 205-3 Confirmed cases of corruption and action taken There were none. GRI 206-1 Penalties for infringements of competition rules There were none. MAJOR TOPIC: TAXES (GRI 207) GRI 207-1 Approach to tax payment About Us https://www.asahigroup-holdings. com/en/company/policy/tax_code_of_ conduct.html GRI 207-4 in-house Amounts of taxes paid About Us, Annual Reports CZ and SK ENVIRONMENT MAJOR TOPIC: MATERIALS (2016) (GRI 301) GRI 301-1 Material consumption by weight or volume Ingredients, Packaging, GRI data - Materials GRI 301-2 in-house Share of packaging made from recycled materials Packaging, GRI data - Materials We monitor an alternative indicator - the proportion of packaging made from recycled materials - which is more relevant for beverage producers. GRI 301-3 Take-back of products and packaging materials Packaging The return rate of barrels and crates is almost 100%. The return rate of glass bottles is 98%. MAJOR TOPIC: ENERGY (2016) (GRI 302) GRI 302-1 Energy consumption within the organisation Carbon Neutrality - GRI data - Energy In addition to the summary, we also provide a breakdown by brewery and malthouse. GRI 302-3 Energy Intensity Carbon Neutrality - GRI data - Energy We monitor energy consumption separately for malt and beer. GRI 302-4 Reduction of Energy Consumption Carbon Neutrality MAJOR TOPIC: WATER (2018) (GRI 303) GRI 303-1 Interaction with water as a shared resource Water GRI 303-2 Managing impacts associated with wastewater discharges Water, GRI data - Water GRI 303-3a Water Consumption Water, GRI data - Water GRI 303-4a Wastewater Discharge GRI data - Water GRI 303-5 in-house Water consumption per product unit Water, GRI data - Water We report water consumption in the form of our in-house indicator in the conversion to 1 hl of beer produced and m3 per ton of malt. MAJOR TOPIC: BIODIVERSITY (GRI 304) GRI 304-1 Operations in or near protected areas and areas of high biological value None in th region. GRI 304-3 in-house Protection of Biodiversity Water, Ingredients It is not about protection or remediation at operation sites, but a voluntary activity to protect valuable areas in the surrounding area or in our value chain. MAJOR TOPIC: EMISSIONS (2016) (GRI 305) GRI 305-1 Direct greenhouse gas emissions (Scope 1) Carbon neutrality, GRI data - Emissions GRI 305-2 Indirect greenhouse gas emissions from energy generation (Scope 2) Carbon neutrality, GRI data - Emissions GRI STANDARDS INDICATORS INFORMATION LOCATION NOTES GRI 305-3 Other indirect greenhouse gas emissions (Scope 3) Carbon neutrality, GRI data - Emissions GRI 305-4 Greenhouse gas emission intensity Carbon neutrality, GRI data - Emissions GRI 305-5 Reducing greenhouse gas emissions Carbon Neutrality, Packaging MAJOR TOPIC: WASTE (2020) (GRI 306) GRI 306-1 Waste and related impacts Packaging, Waste GRI 306-2 Waste-related impact management Packaging, Waste GRI 306-3 Waste generation Waste, GRI data - Waste GRI 306-4 Waste for reuse Waste, GRI data - Waste GRI 306-5 Waste for disposal Waste, GRI data - Waste MAJOR TOPIC: SUPPLIER ENVIRONMENTAL ASSESSMENT (2016) (GRI 308) GRI 308-1 Evaluating environmental criteria for new suppliers Since 2021, all new suppliers over €100,000 have been accredited through a Supplier Risk Assessment, which includes ESG criteria. GRI 308-2 Negative environmental impacts in the supply chain and measures taken There have been no emergencies or major accidents that might have adversely affected the environment. COMPANY MAJOR TOPIC: EMPLOYMENT (2016) (GRI 401) GRI 401-1 Staff hiring and fluctuations GRI data - People For this indicator we report counts. GRI 401-2 Benefits provided to full-time employees that are not provided to fixed-term or part-time employees People GRI 401-3a, b, c Parental leave People, GRI data - People We report a-c data on maternal and parental leave drawing, starts and returns to work. We do not calculate return and retention rates (d, e). MAJOR TOPIC: EMPLOYEE-MANAGEMENT RELATIONS (GRI 402) GRI 402 Minimum time limits for notification of operational changes The notification period is one month before the decision on the organisational change is issued. It is stated in the collective agreements. (Newly added.) MAJOR TOPIC: OCCUPATIONAL HEALTH AND SAFETY (2018) (GRI 403) GRI 403 in-house Approach to occupational health and safety People, About Us The requirements for describing the management approach under GRI Indicators 403-1 to 403-8 are too broad for the purpose of this report. We present our approach here in a brief form, supported by the full internal OHS documentation. GRI 403-1 Occupational health and safety management system People GRI 403-2 Hazard identification, risk assessment and incident response GRI 403-3 Employee health care GRI 403-4 Employee involvement and consultation in the OHS management and communication system GRI 403-5 Occupational health and safety training GRI 403-6 Support for employee health GRI 403-7 Prevention and minimisation of OHS-related impacts in business rela- tionships GRI 403-8 Workers included in the OHS management system GRI 403-9 Occupational injuries GRI data - People Points c, d are addressed by the OHS management system. 178 179 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ GRI STANDARDS INDICATORS INFORMATION LOCATION NOTES MAJOR TOPIC: TRAINING AND EDUCATION (2016) (GRI 404) GRI 404-1 Average number of hours of training per employee GRI data - People GRI 404-2 Programmes to improve employee skills and promote sustainable employability People GRI 404-3 Percentage of employees who undergo regular performance and career development reviews Regular annual performance and career development reviews apply to all fixedterm and permanent staff. MAJOR TOPIC: DIVERSITY, EQUAL OPPORTUNITIES AND NON-DISCRIMINATION (2016) (GRI 405, GRI 406) GRI 405-1 Diversity in governing bodies and staff People, GRI data - People, Annual Reports CZ and SK The data reported here refer to the management - directors jointly for CZ and SK. The members of the individual statutory bodies are listed in the annual reports. GRI 405-2 The ratio of basic pay and remuneration for women and men People - Equal Salary Certification Summary information without breakdown by category. GRI 406-1 Cases of discrimination and action taken There were none. MAJOR TOPIC: HUMAN RIGHTS (2016) (GRI 407, GRI 408, GRI 409, GRI 410, GRI 411, GRI 412) Human Rights - in- house About Us - Company Ethics, People - Ethics GRI 407-1 Freedom of Association and Collective Bargaining (2016) We are committed to protecting and respecting human rights in all these areas. We require the same from our suppliers. For details, see the Business Ethics Policy at https://www.prazdroj.cz/nas-pribeh/ dulezite-listiny. GRI 408-1 Child Labour (2016) GRI 409-1 Forced and Compulsory Labour (2016) GRI 410-1 Security Practices (2016) GRI 411-1 Protecting the Rights of Indigenous Peoples (2016) GRI 412-1 Human Rights Protection Assessment (2016) GRI 412-2 Staff training on human rights and related regulations and procedures People - Ethics MAJOR TOPIC: LOCAL COMMUNITIES (2016) (GRI 413) GRI 413-1 Operations involved in local communities, impact assessment and development programmes Communities GRI 413-2 Operations with significant actual or potential negative impacts on local communities We are not aware of any actual or potential negative impacts of our operations on local communities. MAJOR TOPIC: SUPPLIER IMPACT ASSESSMENT (2016) (GRI 414) GRI 414-1 Evaluation of social criteria for new suppliers Since 2021, all new suppliers over €100,000 have been accredited through a Supplier Risk Assessment, which includes ESG criteria. MAJOR TOPIC: CUSTOMER HEALTH AND SAFETY (2016) (GRI 416) GRI 416-1 Assessment of product and service impact on health and safety Responsibility GRI 416-2 Violations of regulations in the area of product and service impact on customer health and safety There were none. GRI STANDARDS INDICATORS INFORMATION LOCATION NOTES MAJOR TOPIC: PRODUCT MARKETING AND LABELLING (2016) (GRI 417) GRI 417-1 Information and labelling requirements for products and services Responsibility, Communities GRI 417-2 Cases of infringement in the area of provision of information and labelling of products and services There were none. GRI 417-3 Marketing communication infringements There were none. MAJOR TOPIC: CUSTOMER PRIVACY (2016) (GRI 418) GRI 418-1 Legitimate complaints about customer privacy breaches and personal data leaks There were none. 181 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 180 STANDARD ESRS STANDARD AND THE DISCLOSURE REQUIREMENT NAME COVER- AGE INFORMATION LOCATION NOTES E1 E1.SBM-3 (ESRS 2 related) - Significant impacts, risks and opportunities and their interrelationship with strategy and business model marginally Carbon Neutrality This chapter includes relevant information, but does not yet meet all of the ESRS requirements for structure and content MANAGING IMPACTS, RISKS AND OPPORTUNITIES E1 E1-2 - Climate change mitigation and adaptation policies About Us - Focus on Quality; Carbon Neutrality Integrated Management System (IMS), ISO 14001 Environmental Management System, ISO 50001 Energy Management System; Asahi Europe & International Group Sustainability Policy E1 E1-3 - Actions and resources in the context of climate change policies Strategy - What happened in 2023; Carbon Neutrality Photovoltaics, Transition to renewables, Manufacturing, Transport & Logistics, Packaging, Agriculture & Ingredients, Cooling (Smart Taproom) INDICATORS AND TARGETS E1 E1-4 - Climate change mitigation and adaptation objectives Strategy - Our Sustainability Commitments; Carbon Neutrality E1 E1-5 - Energy consumption and energy mix Carbon Neutrality - Energy consumption and carbon footprint in manufacturing; GRI data - Energy (GRI 302) "For the purposes of the GRI indicators, we report consumption in GJ. We also report the information broken down between breweries and malt houses, and in terms of hectolitres of beer and tonnes of malt produced (our own indicator)." E1 E1-6 - Gross Scope 1, 2, 3 and total GHG emissions Carbon Neutrality - Energy consumption and carbon footprint in manufacturing, Emissions in our value chain, Absolute direct and indirect emissions, Emissions categories; GRI data - Emissions (GRI 305) In the GRI data section we present Scope 1 and 2 emissions, including a breakdown breweries and malt houses(AR 41), and in terms of hl of beer and tonnes of malt produced (our own indicator). E1 E1-8 - Internal carbon pricing Strategy - S-EBITA ESRS E2 POLLUTION MANAGING IMPACTS, RISKS AND OPPORTUNITIES E2 E2-1 - Pollution policies About Us - Focus on Quality Integrated company policy (IMS), ISO 14001 environmental management system, IPPC pollution prevention ESRS E3 WATER AND MARINE RESOURCES Water This chapter includes relevant information, but does not yet meet all of the ESRS requirements for structure and content MANAGING IMPACTS, RISKS AND OPPORTUNITIES E3 E3.IRO-1 (ESRS 2 related) - Description of procedures for identifying and assessing significant impacts, risks and opportunities related to water and marine resources Water Audits focused on addressing water supply risks for breweries; Water Source Vulnerability Assessments (SVAs) according to AWS (Alliance for Water Stewardship) and TCFD standards E3 E3-1 - Policies relating to water and marine resources Water Water Management Directive; Asahi Europe & International Group Sustainability Policy E3 E3-2 - Measures and resources related to water and marine resources Water - Continuous reduction of water consumption, Radegast Brewery water projects, Water treatment in breweries, Water saving measures in breweries, Smart Taproom INDICATORS AND TARGETS E3 E3-3 - Targets related to water and marine resources Strategy - Our sustainability commitments; Water majority coverage partial coverage marginal coverage STANDARD ESRS STANDARD AND THE DISCLOSURE REQUIREMENT NAME COVER- AGE INFORMATION LOCATION NOTES ESRS 2 GENERAL REQUIREMENTS BASIS FOR THE SUSTAINABILITY STATEMENT ESRS 2 BP-1 - General basis for preparation of the sustainability statement partly About this Report ESRS 2 BP-2 - Disclosure of information in relation to specific circumstances partly About this Report CORPORATE ADMINISTRATION AND MANAGEMENT ESRS 2 GOV-1 - Role of administrative, management and supervisory bodies About Us - Company Management and Control Structure; Strategy - Sustainability Strategy Management, S-EBITA ESRS 2 GOV-3 - Incorporation of sustainability-related performance into incentive schemes marginally Strategy - S-EBITA ESRS 2 GOV-4 – Due Diligence Statement About Us - Focus on Quality Due diligence evaluation before new product launches STRATEGY ESRS 2 SBM-1 - Strategy, Business Model and Value Chain partly About Us - Breweries and malt houses of Plzeňský Prazdroj, Portfolio of Plzeňský Prazdroj, How we brew our beers, Results in 2023, Awards; Behind the Brewery Gates Diagram of the supply-demand chain; Strategy - Pillars of the strategy, Our commitment to sustainability, What happened in 2023; Strategy implementation ESRS 2 SBM-2 - Stakeholder interests and views most About Us - We are in dialogue with all our stakeholders ESRS 2 SBM-3 - Significant impacts, risks and opportunities and their interrelationship with strategy and business model partly About Us - Results for 2023, Awards, Focus on Quality, Plzeňský Prazdroj's Materiality Matrix, Slovak Plzeňský Prazdroj's Materiality Matrix The materiality analysis is based on GRI standards. The themes were assessed in terms of material impact. We plan to apply double significance assessment under the ESRS in the next period. MANAGING IMPACTS, RISKS AND OPPORTUNITIES DISCLOSURE OF INFORMATION ON THE MATERIALITY ASSESSMENT PROCESS ESRS 2 IRO-2 - ESRS disclosure requirements for information covered by a company's sustainability statement partly ESRS overview This overview provides basic orientation, it does not yet meet the requirements for a full-scope ESRS content index ESRS E1 CLIMATE CHANGE Carbon Neutrality This chapter includes relevant information, but does not yet meet all of the ESRS requirements for structure and content CORPORATE ADMINISTRATION AND MANAGEMENT E1 E1.GOV-3 (ESRS 2 related) – Incorporation of sustainability-related performance into incentive schemes marginally Strategy - S-EBITA STRATEGY E1 E1-1 - Plan of Transition to Climate Change Mitigation margin Strategy, Carbon Neutrality ESRS index "This overview provides for orientation in the report in terms of the ESRS standard structure. It does not represent the full scope of the ESRS content register. It indicates the location of information related to disclosure requirements (rather than the individual data points) without guaranteeing full coverage of those requirements. We are gradually preparing for reporting under the ESRS requirements, this report is prepared with reference to the GRI standards and does not yet include all information that will be required from us by the ESRS standards in the future." majority coverage partial coverage marginal coverage 182 183 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ STANDARD ESRS STANDARD AND THE DISCLOSURE REQUIREMENT NAME COVER- AGE INFORMATION LOCATION NOTES S1 S1-2 - Procedures for working with internal workforce and employee representatives with respect to impacts About Us - Dialogue with Stake- holders; People - Satisfaction Survey S1 S1-3 - Procedures for correcting negative impacts and whistleblowing channels for internal workforce to voice concerns People - Well-being, Ethics You can count on us assistance programme, Whistleblowing options S1 S1-4 - Taking action on significant impacts on internal workforce and approaches to managing significant risks and exploiting significant opportunities related to internal workforce and the effectiveness of these actions Strategy - What happened in 2023; People - Diversity and Inclusion, Education, Well-being, Volunteering, Young Talent Development and Support, Health and Safety E.g., adoption of new guidelines, collective bargaining agreement, Equal Salary certification, programs described in the subchapters by major topic INDICATORS AND TARGETS S1 S1-5 - Objectives related to significant negative impact management, positive impact promotion, and management of significant risks and opportunities People Gender balance in management S1 S1-6 - Characteristics of the company's employees GRI data - People (GRI 2-7, GRI 401, GRI 405) S1 S1-7 - Characteristics of non-employees in the enterprise's internal workforce GRI data - People (GRI 2-8) S1 S1-8 - Collective bargaining coverage and social dialogue People - Collective agreement and other guidelines S1 S1-9 - Diversity indicators GRI data - People (GRI 405) S1 S1-13 - Training and skills development indicators GRI data - People (GRI 404) Average number of hours of education S1 S1-14 - Health and safety indicators GRI data - People (GRI 403) S1 S1-15 - Work-life balance indicators GRI data - People (GRI 401-3) Taking parental leave only S1 S1-16 - Remuneration indicators (pay gap and total remuneration) People - Equal Salary: a fair remuneration system So far without quantitative indicators calculated according to ESRS S1 S1-17 - Incidents, complaints and serious human rights impacts GRI Index ESRS S3 AFFECTED COMMUNITIES Communities This chapter includes relevant information, but does not yet meet all of the ESRS requirements for structure and content MANAGING IMPACTS, RISKS AND OPPORTUNITIES S3 S3-2 - Procedures for working with affected communities to address impacts About Us - Dialogue with Stake- holders S3 S3-4 - Taking action on significant impacts on affected communities and approaches to managing significant risks and exploiting significant opportunities related to affected communities and the effectiveness of these actions Communities Partnerships with cities and regions, Plzeňský Prazdroj Fund, Breweries and their visitors, Beer culture, Craft, Non-profit sector, Volunteering, Pub support, Fresh outlet (reducing visual smog) ESRS S4 CONSUMERS AND END USERS Responsibility This chapter includes relevant information, but does not yet meet all of the ESRS requirements for structure and content MANAGING IMPACTS, RISKS AND OPPORTUNITIES S4 S4-1 - Consumer and End-User Policies Responsibility Integrated Company Policy (IMS), ISO 22000 Food Safety Assurance System, FSMS HACCP; Code of Commercial Communication; Asahi Group International Commitments S4 S4-2 - Procedures for engagement with consumers and end users with regard to impacts Responsibility - Prevention of underage drinking majority coverage partial coverage marginal coverage STANDARD ESRS STANDARD AND THE DISCLOSURE REQUIREMENT NAME COVER- AGE INFORMATION LOCATION NOTES E3 E3-4 - Water consumption Water; GRI data - Water The information is further broken down into breweries and malthouses(AR 30) and in terms of hl of beer and tonnes of malt produced (AR 31). ESRS E4 BIODIVERSITY AND ECOSYSTEMS MANAGING IMPACTS, RISKS AND OPPORTUNITIES E4 E4-3 - Measures and resources related to biodiversity and ecosystems Strategy - What happened in 2023; Ingredients - Barley, Blossom for Hops FOR HOPS, FOR BARLEY, Blossom for Hops, building ponds by Radegast projects ESRS E5 RESOURCE USE AND CIRCULAR ECONOMY Ingredients; Packaging; Waste These chapters include relevant information, but do not yet meet all of the ESRS requirements for structure and content MANAGING IMPACTS, RISKS AND OPPORTUNITIES E5 E5.IRO-1 (ESRS 2 related) - Description of procedures for identifying and assessing significant impacts, risks and opportunities related to resource use and circular economy Packaging - Life Cycle Analysis E5 E5-1 - Resource use and circular economy policies About Us - Focus on Quality; Ingredients; Packaging; Waste Integrated Company Policy (IMS), ISO 14001 Environmental Management System, Waste Management Guidelines, GMP+ Feed Safety Certification E5 E5-2 - Measures and resources related to resource use and circular economy Strategy - What happened in 2023; Ingredients - FOR BARLEY CZECH / SLOVAK PROJECT, FOR HOPS, Blossom for Hops projects; Packaging – Reduced use of disposable packaging, Returnable packaging, Cans, Returnable packaging system, Glass, Sorting line, Paper; Waste - Reduced landfill, Secondary materials from production, Returnable glass and cups at festivals INDICATORS AND TARGETS E5 E5-3 - Resource use and circular economy targets Strategy - Our Sustainability Commitments; Ingredients; Packaging; Waste Ingredients from sustainable agriculture, Recyclability/circularity of packaging; Zero waste to landfill E5 E5-4 - Resource Inflow Ingredients; Packaging; GRI data - Materials (GRI 301), Waste (GRI 306) E5 E5-5 - Resource Outflow Waste ESRS S1 INTERNAL WORKFORCE People This chapter includes relevant information, but does not yet meet all of the ESRS requirements for structure and content MANAGING IMPACTS, RISKS AND OPPORTUNITIES S1 S1-1 - Internal Workforce policies About Us - Focus on Quality; People - Diversity and Inclusion, Education, Well-being, Young Talent Development and Sup- port Integrated Company Policy (IMS), Occupational Health and Safety System ISO 45001; Diversity Charter (European, Czech, Slovak); Directive: Equal Treatment and Protection against Discrimination (Asahi Europe & International Group), Compensation and Employee Benefits, Employee Training and Development, Occupational Health and Safety and Fire Protection, Hazardous Substances Management, Whis- tleblowing; Collective Agreement majority coverage partial coverage marginal coverage 184 185 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ GRI data - People PEOPLE 2-7 Staff Number and Structure CZ 2020 INDEFINITE PERIOD FIXED TERM FULL-TIME PART-TIME Women 754.3 666.3 88 722.5 31.8 Men 1411.2 1292.5 118.7 1409.3 1.9 TOTAL 2,165.5 SK 2020 INDEFINITE PERIOD FIXED TERM 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 FIXED TERM FULL-TIME PART-TIME Women 742.5 667.5 75 709.6 32.9 Men 1420.7 1317.4 103.3 1417.3 3.3 TOTAL 2,163.2 SK 2021 INDEFINITE PERIOD FIXED TERM 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 FIXED TERM FULL-TIME PART-TIME Women 766 649.5 116.5 727.6 38.4 Men 1420 1297.9 122.3 1416.7 3.6 TOTAL 2,186 SK 2022 INDEFINITE PERIOD FIXED TERM FULL-TIME PART-TIME Women 173.8 141.1 32.8 169.9 0 Men 400.1 353.6 46.5 400.1 3.9 TOTAL 573.9 CZ 2023 INDEFINITE PERIOD FIXED TERM FULL-TIME PART-TIME Women 810.4 599.1 211.3 789.7 20.7 Men 1720.3 1471 249.3 1716.1 4.2 TOTAL 2,530.7 SK 2023 INDEFINITE PERIOD FIXED TERM FULL-TIME PART-TIME Women 224.1 169.5 54.6 218.9 5.2 Men 477.4 389.6 87.8 477.4 0 TOTAL 701.5 All data are calculated as the average number of employees (1 January - 31 December of the current year). There were no significant year-on-year fluctuations in staff numbers. STANDARD ESRS STANDARD AND THE DISCLOSURE REQUIREMENT NAME COVER- AGE INFORMATION LOCATION NOTES S4 S4-3 - Procedures for correcting negative impacts and whistleblowing channels for consumers and end users to voice concerns Responsibility S4 S4-4 - Taking action on significant impacts on consumers and end users and approaches to managing significant risks and exploiting significant opportunities related to consumers and end users and the effectiveness of these actions Strategy - What happened in 2023; Responsibility Responsible consumption, Commercial communication, Prevention programmes, Soft drinks in the portfolio, Fighting stereotypes INDICATORS AND TARGETS S4 S4-5 - Objectives related to significant negative impact management, positive impact promotion, and management of significant risks and opportunities About Us – Our Sustainability Commitments; Responsibility Engagement in prevention programmes, Share of soft drinks in the portfolio ESRS G1 BUSINESS CONDUCT MANAGING IMPACTS, RISKS AND OPPORTUNITIES G1 G1-1 - Business conduct and corporate culture pol- icies About Us - Ethics, Focus on Quality; Strategy - Our Mission, We Educate G1 G1-2 - Supplier Relationship Management About Us - Responsibility and Suppliers; Ingredients Projects aimed at supporting ingredient suppliers INDICATORS AND TARGETS G1 G1-4 - Cases of corruption or bribery GRI Index majority coverage partial coverage marginal coverage BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 187186 PEOPLE 401-3 a, b, c TOTAL NUMBER OF EMPLOYEES, WHO DREW PARENTAL LEAVE 2020 2021 2022 2023 CZ ON LEAVE START RETURN ON LEAVE START RETURN ON LEAVE START RETURN ON LEAVE START RETURN Women 133 33 26 138 39 32 122 27 20 146 73 38 Men 4 0 2 1 0 0 2 0 2 1 1 1 TOTAL 137 33 28 139 39 32 124 27 22 147 74 39 SK 2020 2021 2022 2023 Women 35 11 10 26 2 3 30 8 8 23 4 8 Men 3 1 0 4 3 0 15 12 0 20 13 17 TOTAL 38 12 10 30 5 3 45 20 8 43 17 25 All data are calculated as cumulative staff numbers (1 January - 31 December of the current year). PEOPLE 405-1 DIVERSITY - COMPANY MANAGEMENT AND EMPLOYEES Percentage of employees per employee category in each of 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 % CZ/SK 2023 < 30 30-50 > 50 Women 35.29 % 0 35.29 % 0 Men 64.71 % 0 47.06 % 17.65 % 82.35 % 17.65 % * For the purposes of calculating employees, male and female directors CZ/SK. PEOPLE 2-8 Number and structure of non-employee workers Contracts for Work and Contracts for Service are concluded for jobs that are not covered by permanent employment contracts, e.g. seasonal production work, in Craft and Heritage department, temporary jobs, internships, etc. CZ 2020 CONTRACTS FOR SERVICE CONTRACTS FOR WORK 2021 CONTRACTS FOR SERVICE CONTRACTS FOR WORK 2022 CONTRACTS FOR SERVICE CONTRACTS FOR WORK 2023 CONTRACTS FOR SERVICE CONTRACTS FOR WORK Women 130.8 253.5 111.8 241.8 115.5 272.6 155.3 345.1 Men 109.3 256.2 98.7 250.7 100 274.7 119.8 315.9 TOTAL 749.8 240.1 509.7 703 210.5 492.5 762.8 215.5 547.3 838.5 275.1 661 SK 2020 CONTRACTS FOR SERVICE CONTRACTS FOR WORK 2021 CONTRACTS FOR SERVICE CONTRACTS FOR WORK 2022 CONTRACTS FOR SERVICE CONTRACTS FOR WORK 2023 CONTRACTS FOR SERVICE CONTRACTS FOR WORK Women 0.9 5.4 0.9 4.7 1.3 18.3 15.4 5.3 Men 2.1 32.2 2 31.4 1.1 32.3 5.3 31.1 TOTAL 40.6 3 37.6 39 2.9 36.1 53 2.4 50.6 53.8 20.7 36.4 All data are calculated as the average number of employees (1 January - 31 December of the current year). PEOPLE 401-1a New hires CZ 2020 < 30 30-50 > 50 2021 < 30 30-50 > 50 2022 < 30 30-50 > 50 2023 < 30 30-50 > 50 Women 115 49 53 13 90 49 40 1 162 76 79 7 96 46 44 6 Men 189 88 88 13 155 76 63 16 238 100 117 21 143 63 69 11 TOTAL 304 137 141 26 245 125 103 17 400 176 196 28 239 109 113 17 SK 2020 < 30 30-50 > 50 2021 < 30 30-50 > 50 2022 < 30 30-50 > 50 2023 < 30 30-50 > 50 Women 18 10 8 0 14 7 7 0 39 21 16 2 23 7 14 2 Men 71 37 28 6 61 34 21 6 79 35 36 8 47 24 18 5 TOTAL 89 47 36 6 75 41 28 6 118 56 52 10 70 31 32 7 All data are calculated as cumulative staff numbers (1 January - 31 December of the current year). PEOPLE 401-1b Staff turnover (figures include all resignations) CZ 2021 < 30 30-50 > 50 2022 < 30 30-50 > 50 2023 < 30 30-50 > 50 Women 101 39 46 16 109 43 47 19 96 25 56 15 Men 293 65 89 39 199 70 88 41 140 45 63 32 TOTAL 394 104 135 55 308 113 135 60 236 70 119 47 SK 2021 < 30 30-50 > 50 2022 < 30 30-50 > 50 2023 < 30 30-50 > 50 Women 17 9 6 2 44 11 25 8 31 10 15 6 Men 61 29 27 5 78 25 35 18 77 32 29 16 TOTAL 78 38 33 7 122 36 60 26 108 42 44 22 All data are calculated as cumulative staff numbers (1 January - 31 December of the current year). 188 189 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ PEOPLE 404-1 TRAINING Average number of training hours per year per employee Includes statutory, mandatory and developmental training CZ 2021 SENIOR MANAGEMENT MANAGEMENT SPECIALISTS OTHER TOTAL 10.1 12.7 22.1 15.2 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 2021 SENIOR MANAGEMENT MANAGEMENT SPECIALISTS OTHER TOTAL 10.7 7.2 17.5 19.6 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 TOTAL 16.2 23 31 26.9 13.4 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 TOTAL 18.8 9.4 41.4 30.2 16 Women 20.2 7.8 47.6 33.5 16.2 Men 18.3 10.5 38.5 28.3 15.9 CZ 2023 SENIOR MANAGEMENT MANAGEMENT SPECIALISTS OTHER TOTAL 19.4 44.9 41.0 29.9 15.9 Women 18.4 46.4 45.6 28.5 14.7 Men 20.0 44.6 38.8 30.8 16.6 SK 2023 SENIOR MANAGEMENT MANAGEMENT SPECIALISTS OTHER TOTAL 18.7 28.6 31.6 29.5 16.2 Women 18.3 20.5 19.6 30.2 16.1 Men 18.9 31.3 37.8 29.1 16.2 MANAGEMENT CZ/SK 2022 2023 TOTAL 11.6 10.6 Women 10.25 9.2 Men 15.5 11.0 All data are calculated as cumulative staff numbers (1 January - 31 December of the given year). This rate was calculated based on the number of training hours and the number of workers in the given category. The differences in hours are mainly due to the form of training in the covid and postcovid periods. Data for management are not available for previous years in this breakdown. More information in the People chapter. b) Staff CZ 2020 < 30 30-50 > 50 2021 < 30 30-50 > 50 2022 < 30 30-50 > 50 2023 < 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 % 22.64 % 0 19.03 % 3.61 % Men 73.18 % 0 61.54 % 11.64 % 72.59 % 0.18 % 59.07 % 13.34 % 72.29 % 1.20 % 58.43 % 12.65 % 77.36 % 1.81 % 63.15 % 12.4 % 0 83.42 % 16.57 % 0.85 % 79.02 % 20.13 % 1.20 % 79.51 % 19.28 % 1.81 % 82.18 % 16.01 % 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 % 34.36 % 6.15 % 23.15 % 5.07 % 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 % 65.64 % 5.79 % 46.86 % 12.98 % 9.26 % 69.95 % 20.78 % 8.09 % 69.62 % 22.29 % 7.76 % 70.61 % 21.63 % 11.94 % 70.01 % 18.05 % 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 % 32.5 % 7.8 % 15.94 % 8.76 % 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 % 67.5 % 12.08 % 37.61 % 17.81 % 15.35 % 57.12 % 27.53 % 14.03 % 56.43 % 29.52 % 13.60 % 54.65 % 31.75 % 19.88 % 53.55 % 26.57 % SK 2020 < 30 30-50 > 50 2021 < 30 30-50 > 50 2022 < 30 30-50 > 50 2023 < 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 % 34.93 % 2.51 % 24.9 % 7.52 % Men 64.37 % 2.87 % 55.75 % 5.75 % 65.65 % 2.77 % 62.88 % 0 65.85 % 2.71 % 62.33 % 0.81 % 65.07 % 0 62.57 % 2.51 % 2.87 % 79.89 % 17.24 % 4.16 % 84.76 % 11.08 % 5.42 % 84.82 % 9.75 % 2.51 % 87.47 % 10.03 % 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 % 44.04 % 10.44 % 30.99 % 2.61 % 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 % 55.96 % 5.1 % 43.03 % 7.83 % 11.91 % 73.41 % 14.68 % 9.62 % 75.46 % 14.93 % 12.38 % 73.15 % 14.47 % 15.54 % 74.01 % 10.44 % 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 % 29.93 % 6.32 % 16.79 % 6.82 % Men 72.17 % 9.75 % 42.79 % 19.63 % 71.78 % 9.19 % 40.58 % 22.01 % 71.62 % 8.98 % 39.95 % 22.69 % 70.07 % 13.05 % 39.06 % 17.96 % 14.86 % 57.54 % 27.59 % 13.69 % 55.53 % 30.79 % 13.61 % 54.96 % 31.43 % 19.36 % 55.85 % 24.78 % In management we count senior management and management, without the board. All data are calculated as the average number of employees (1 January - 31 December of the current year). 190 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 191 GRI data - Materials, Waste MATERIALS 301-1 Materials purchased for production Total weight of materials used for the production and packaging of primary products RENEWABLES 2019 2020 2021 2022 2023 Barley (tonnes) CZ 168000 136640 143035 152033 146,190 SK 25340 24604 24328 24624 27,884 Hops (kg) CZ 684296 733480 803096 655196 606,523 SK 28608 39688 34053 44124 43,115 Maize (tonnes) CZ n/a n/a n/a n/a 89 SK 470 470 555 1114 581 Malt (tonnes) CZ 4,043 (+7,022)* 3,476 (+5,072)* 3,705 (+6,066)* 5,071 (+6,822)* 3,633 (+9,512)* SK 247 203 308 338 235 Sugar (tonnes) CZ 3663 4446 4166 4248 4,087 SK 1767 1165 1166 1307 1,193 NON-RENEWABLE Auxiliary materials (tons) (diatomaceous earth, stabilization, bases, etc.) CZ 4231 4620 3825 4311 4,471 SK 399 358 325 428 338 * Supplemented by purchases from Plzeňský Prazdroj Slovensko, a. s., for Plzeňský Prazdroj, a. s. For more information, see the Ingredients chapter. MATERIALS USED FOR PURCHASED PACKAGING (tonnes) NON-RENEWABLE 2019 CZ/SK 2020 CZ/SK 2021 CZ/SK 2022 2023 Glass 27858 33,887 change = 32,219 34,178 change = 31,935 30,288 total for CZ/SK 22,961 total for CZ/SK Plastics 2761 2092 1299 CZ = 934 SK = 224 CZ = 974 SK = 195 With addition of crates +1458 +578 +1338 +675 total for CZ/SK +1,241 total for CZ/SK Aluminium 7767 8989 9687 CZ = 8,941 SK = 2,112 CZ = 8,532 SK = 1,829 Metals 1533 1669 1581 CZ = 1,459 SK = 131 CZ = 1,348 SK = 140 With addition of keg barrels +1891 +409 +616 +0 +0 RENEWABLES Paper 5355 6058 6226 CZ = 5,198 SK = 762 CZ = 5,343 SK = 759 Wood 5526 2832 4487 CZ = 3,799 SK = 262 CZ = 1,815 SK = 19 In previous years, the internal system did not allow us to track data split between CZ/SK. PEOPLE 403-9 OCCUPATIONAL INJURIES a) Staff NUMBER RATE 2020 2021 2022 2023 2020 2021 2022 2023 Number and rate of deaths due to occupational injuries CZ 0 0 0 0 0.000 0.000 0.000 0.000 SK 0 0 0 0 0.000 0.000 0.000 0.000 Number and rate of major occupational injuries with absence from work We do not track the number and rate of occupational injuries with permanent health consequences (excluding fatalities). CZ 1 4 1 0 0.054 0.214 0.052 0.000 SK 0 1 0 0 0.000 0.229 0.000 0.000 Number and rate of occupational injuries with absence from work CZ 5 3 5 5 0.271 0.161 0.260 0.250 SK 1 1 1 0 0.212 0.229 0.221 0.000 Main types of occupational injuries finger injuries, leg and arm injuries, bruises, muscle injuries, foot injuries hand injuries, leg injuries, head injuries hand injury, shoulder injury, dislocated knee, cut on the hand Number of hours worked CZ 3695398 3732902 3840145 3,990,508 SK 944483 871962 903895 871,884.3 b) Specialist suppliers - permanent contractors* NUMBER RATE 2020 2021 2022 2023 2020 2021 2022 2023 Number and rate of deaths due to occupational injuries CZ 1 0 0 0 0.112 0.000 0.000 0.000 SK 0 0 0 0 0.000 0.000 0.000 0.000 Number and rate of major occupational injuries with absence from work We do not track the number and rate of occupational injuries with permanent health consequences (excluding fatalities). CZ 0 0 1 0 0.000 0.000 0.142 0.000 SK 0 0 0 0 0.000 0.000 0.000 0.000 Number and rate of occupational injuries with absence from work CZ 1 1 2 0 0.112 0.153 0.284 0.000 SK 0 0 0 0 0.000 0.000 0.000 0.000 Main types of occupational injuries finger injuries, leg and arm injuries, bruises fractured arms, leg injuries Number of hours worked CZ 1783402 1307637 1409213 1,450,713 SK 325700 276035 732219 263,133 Rate calculated on the basis of 200,000 hours worked for the equivalent of 100 workers. The data were obtained from internal HR and HSE systems. The data include all staff over whose activities the organisation controls. * SPECIALISED CONTRACTORS ' Contractors employed for specific tasks that do not take up a substantial part of their working time and/or who work for multiple employers (such as annual testing or equipment maintenance). ' Contractors engaged for specific projects/maintenance that are not part of normal operations (such as workers involved in a construction project). BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 192 193 WASTE 306-4, 306-5 WASTE TREATMENT (excluding by-products) 100% of by-products are recycled. TONS 2019 2020 2021 2022 2023 TOTAL WASTE EXCLUDING BY-PRODUCTS CZ 12054 12045 10920 11088 11,124 SK 1181 1028 776 997 994 TONS 2019 2020 2021 2022 2023 RECYCLING diatomaceous earth, bitter sludge, barley dust, glass, paper and cardboard, plastics, metals, biodegradable waste, hazardous waste (oils, batteries, electrical equipment), etc. CZ information is not available in this breakdown 5621 8081 10029 9,999 SK 750 655 927 965 ENERGY RECOVERY wooden packaging, mixed packaging, mixed municipal waste, hazardous waste (chemical substance and mixture packaging, absorbents), etc. CZ information is not available in this breakdown 4142 1381 347 748 SK 182 62 27 29 LANDFILL mixed municipal waste, mixed packaging, screen wash-offs, bulky waste, etc. CZ 2413 2282 1458 713 376 SK 199 96 59 44 0 The proportion of hazardous waste is negligible, therefore we consider this simplified presentation to be sufficiently clear also for the purposes of GRI 306-4 and 5b, c. Waste management according to types and subsequent disposal is provided by contractual companies that hold valid permits and authorizations for waste disposal in the area of waste management according to valid legislation. For more information, see the Waste chapter. GRI data – energy – water – emissionS Data on water, energy, emissions refer to the production sites. Further consumption is measured at company-owned distribution centres, but this accounts for only 0.4% of the total consumption. The Proud mini brewery (on Plzeň premises) is an insignificant source of consumption in terms of performance and energy consumption. PRODUCTION IN BREWERIES (millions of hectolitres) BREWERIES 2019 2020 2021 2022 2023 Plzen 5.1 4.8 4.6 5.3 4.8 Nošovice 1.9 2 2.2 2.5 2.5 Velké Popovice 1.8 1.6 1.5 1.4 1.8 Veľký Šariš 1 1.2 1 1.2 1.2 PRODUCTION IN MALT HOUSES (thousands OF TONS) MALT HOUSES 2019 2020 2021 2022 2023 Plzen 82 77 78 88 87 Nošovice 36 35 35 34 36 Veľký Šariš 19 19 19 21 22 MATERIALS 301-2 - PP SHARE OF PACKAGING MADE FROM RECYCLED MATERIALS IN THE TOTAL AMOUNT OF PACKAGING MATERIALS USED CZ/SK 2019 2020 2021 2022 2023 PLASTICS PET, PSL, pallet stretch film, shrink/container film, keg, container bags, tank bags, crates 10.5 % 23 % 29 % CZ = 40 % SK = 88 % CZ = 31 % SK = 88 % PAPER Bottle labels, offset tray, flexo tray, offset carton, flexo carton, MPs, boxes, pallet layer 60 % 66 % 81 % CZ = 81 % SK = 89 % CZ = 77 % SK = 95 % ALUMINIUM Cans, can lids, foils, crown caps 36 % 37 % 43 % CZ = 53 % SK = 43 % CZ = 51 % SK = 69 % GLASS Bottles 67 % 69 % 71 % CZ = 70 % SK = 70 % CZ = 65 % SK = 65 % In previous years, the internal system did not allow us to track data split between CZ/SK. For more information, see the Packaging chapter. WASTE 306-3 Waste from production sites Exclusive of waste from distribution centres, administrative centres and technical services, which account for 0.15% by volume. TONS 2019 2020 2021 2022 2023 BY-PRODUCTS (spent grains, yeast, wash-offs, malt flower, malt dust, back barley, etc.) CZ 160697 164460 159970 172778 172,254 SK 14305 18990 18393 19667 18,291 WASTE (diacetamous earth, barley dust, glass packaging, aluminium packaging, paper packaging, plastic packaging, wooden packaging, mixed packaging, labels, iron and other metals, biodegradable waste, mixed municipal waste, discarded electrical equipment, sludge, construction debris, etc.) CZ 11927 11901 10821 11016 11,098 SK 1116 1018 773 994 993 HAZARDOUS WASTE (chemical substance and mixture packaging, absorbents, engine and mineral oils, oil filters, laboratory chemicals, fluorescent lamps, solvents, discarded equipment containing chlorfluorocarbons, etc.) CZ 127 144 99 72 26 SK 65 10 3 3 3 TOTAL 188,237 196,523 190,059 204,533 202,665 CZ 172,751 176,505 170,890 183,866 183,378 SK 15,486 20,018 19,169 20,667 19,287 194 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 195 Electricity and heat consumption, breweries (GJ) 2019 2020 2021 2022 2023 PLZEŇ Electricity Heat Steam from biomass (renewable) 380,388 114083 266305 n/a 390,711 112304 278407 n/a 374,879 109551 197620 67708 404,044 119379 0 284665 384,512 116285 0 268227 NOŠOVICE Electricity 36,773 41,713 41,898 43,751 44,086 VELKÉ POPOVICE Electricity 39,829 35,430 33,509 33,055 33,662 VEĽKÝ ŠARIŠ Electricity 22,845 24,146 22,830 23,162 21,710 Energy consumption, malt houses (GJ) 2019 2020 2021 2022 2023 PLZEŇ n/a n/a n/a n/a n/a NOŠOVICE Natural gas Diesel + light heating oils Biogas (renewable) 86,755 79035 25 7695 89,888 83768 n/a 6120 87,769 81757 33 5979 84,548 65851 13695 5002 84,958 74137 5976 4845 VEĽKÝ ŠARIŠ Natural gas 40,742 39,135 39,681 42,017 44,412 Electricity, heat and COOLING consumption, malt houses (GJ) 2019 2020 2021 2022 2023 PLZEŇ Electricity Cooling Heat Steam from biomass (renewable) 255,447 29610 8028 217809 n/a  237,709 26155 4924 206630 n/a  235,379 26920 6250 143354 58856 250,652 32170 5379 0 213103 241,387 29420 4523 0 207444 NOŠOVICE Electricity 10,919 10,868 10,700 10,427 11,083 VEĽKÝ ŠARIŠ Electricity 40,742 39,135 39,681 42,017 6,733 ENERGY 302-3 PRODUCT ENERGY INTENSITY Ratio of energy consumption to total volume of beer production in breweries (MJ/hl) BREWERIES 2019 2020 2021 2022 2023 Plzeň 83.16 91.37 91.62 85.67 88.54 Nošovice 76.80 82.29 77.58 69.69 69.19 Velké Popovice 76.54 84.34 84.93 84.08 72.31 Veľký Šariš 77.87 77.42 79.59 72.66 70.87 Ratio of energy consumption to total beer production in breweries kWh/hl BREWERIES 2019 2020 2021 2022 2023 Plzeň 23.10 25.38 25.45 23.80 24.59 Nošovice 21.33 22.86 21.55 19.36 19.22 Velké Popovice 21.26 23.43 23.59 23.36 20.09 Veľký Šariš 21.63 21.51 22.11 20.18 19.69 ENERGY 302-1 Values of purchased energy volumes TOTAL ENERGY CONSUMPTION (GJ) CZ 2019 2020 2021 2022 2023 NON-RENEWABLE 1,084,466 1,084,246 937,029 602,141 597,377 Natural gas 332396 341109 340697 304803 326967 LPG 28637 26563 26341 23652 19732 Diesel + light heating oils 75 141 188 29525 13142 Electricity 231216 226472 222580 238782 234536 Cooling 8028 4924 6250 5379 4523 Heat 484114 485037 340973 0 0 RENEWABLES 27,153 20,285 148,422 514,250 492,315 Biogas 27153 20285 21858 16491 16643 Steam from biomass* n/a n/a 126564 497759 475672 TOTAL 1,111,619 1,104,531 1,085,451 1,116,391 1,089,692 * heat from biomass since October 2021 SK 2019 2020 2021 2022 2023 NON-RENEWABLE Natural gas 99347 106678 106199 109703 105,741 LPG 1649 2140 1641 1644 752 Electricity 29333 30909 28962 29748 28,443 TOTAL 130,329 139,727 136,802 141,095 134,936 Energy consumption, breweries (GJ) 2019 2020 2021 2022 2023 PLZEN Natural gas LPG Diesel 65,818 47235 18583 n/a 61,563 43300 18250 13 64,639 46485 18142 12 65,022 49676 15329 17 59,761 48235 11517 9 NOŠOVICE Natural gas Diesel + light heating oils LPG Biogas (renewable) 120,837 104812 50 5209 10766 131,944 118336 128 4130 9350 133,157 119284 143 4106 9624 136,975 107948 15813 4467 8747 132,534 113415 7157 4154 7808 VELKÉ POPOVICE Natural gas LPG Biogas (renewable) 114,850 101314 4845 8691 104,701 95704 4182 4815 103,520 93172 4093 6255 87,626 81328 3556 2742 99,230 91180 4061 3989 VEĽKÝ ŠARIŠ Natural gas LPG 60,254 58605 1649 69,683 67543 2140 68,159 66518 1641 69,330 67686 1644 62,081 61329 752 196 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ 197 WATER 303-3a Water consumption and source, breweries (m3) 2019 2020 2021 2022 2023 PLZEŇ Municipal water distribution system Company wells 1,677,605 797938 879667 1,598,380 812815 785564 1,549,244 711411 837833 1,650,058 757939 892119 1,522,390 658742 863648 NOŠOVICE Municipal water distribution system 505,037 524,855 525,246 579,369 569,922 VELKÉ POPOVICE Municipal water distribution system Company wells 524,224 214232 309992 465,378 172621 292757 438,701 163975 274726 403,509 154923 248586 465,006 162957 302049 VEĽKÝ ŠARIŠ Municipal water distribution system 295,395 326,289 306,889 338,247 305,158 Water consumption and water sources, malt houses (m3) 2019 2020 2021 2022 2023 PLZEŇ Municipal water distribution system Company wells 350,786 146297 204489 308,319 65299 243020 310,297 24441 285855 317,429 65396 252033 311,577 70574 241003 NOŠOVICE Municipal water distribution system Company wells 139,338 46297 93041 135,797 27959 107838 137,899 28442 109457 131,667 21814 109853 132,826 20957 111869 VEĽKÝ ŠARIŠ Municipal water distribution system Company wells 67,847 17319 50528 70,360 16372 53988 67,430 13757 53673 73,653 21515 52138 83,101 16120 66981 The consumption mix currently varies according to the water situation. WATER 303-4a Wastewater treatment, breweries (m3) 2019 2020 2021 2022 2023 PLZEŇ Sewerage River 783,580 746458 37122 772,269 740309 31960 779,185 750433 28752 749,701 747735 1966 717,516 716898 618 NOŠOVICE Sewerage River 339,612 339612 0 560527 514821 45706 512,556 450132 62424 502,882 450865 52017 483,250 483250 0 POPOVICE River 308,321 281,456 242,868 234,825 249,423 VEĽKÝ ŠARIŠ Sewerage 269,079 214,532 188,237 243,191 240,596 * In the Plzen brewery, some stormwater is discharged into the stormwater drainage system/river. Wastewater treatment, malthouses (m3) 2019 2020 2021 2022 2023 PLZEŇ Sewerage 305,379 237,882 239,904 253,595 227,940 NOŠOVICE Sewerage 88078 n/a* n/a* n/a* n/a* VEĽKÝ ŠARIŠ n/a* n/a* n/a* n/a* n/a* * n/a - water is discharged through breweries PRODUCT ENERGY INTENSITY Ratio of energy consumption to total malt production in malt houses (MJ/t) MALT HOUSES 2019 2020 2021 2022 2023 Plzeň 2883 2889 2798 2689 2,630 Nošovice 2649 2734 2703 2668 2,594 Veľký Šariš 2504 2387 2397 2280 2,280 Ratio of energy consumption to total malt production in malt houses kWh/hl MALT HOUSES 2019 2020 2021 2022 2023 Plzeň 801 803 777 747 731 Nošovice 736 759 751 741 721 Veľký Šariš 696 663 666 633 633 For more information, see the Carbon Neutrality chapter. The product energy intensity data do not include energy that is consumed within the premises but is not related to the production of beer (e.g. resales to external entities, experimental brewery, etc.). WATER 303-5-PP AVERAGE WATER CONSUMPTION, BREWERIES (hl/hl) Ratio of water consumption to the total volume of beer produced in the given location BREWERIES 2019 2020 2021 2022 2023 Plzeň 3.26 3.35 3.36 3.12 3.16 Nošovice 2.53 2.57 2.41 2.29 2.29 Velké Popovice 2.85 2.97 2.91 2.97 2.66 Veľký Šariš 2.89 2.78 2.79 2.73 2.64 AVERAGE WATER CONSUMPTION, MALT HOUSES (m3/t) Ratio of water consumption to the total volume of malt produced in the given location MALT HOUSES 2019 2020 2021 2022 2023 Plzeň 4.25 3.98 3.95 3.61 3.59 Nošovice 3.9 3.83 3.96 3.83 3.71 Veľký Šariš 3.6 3.66 3.53 3.46 3.70 198 199 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ Direct emissions Scope 1, breweries (t CO2) 2019 2020 2021 2022 2023 PLZEN Natural gas LPG Diesel 3,841 2617 1224 n/a 3,604 2401 1202 1 3,773 2577 1195 1 3,766 2755 1010 1 3,482 2675 806 1 NOŠOVICE Natural gas LPG Diesel + light heating oils Biogas (renewable) 6,154 5807 343 4 0 6,790 6508 273 9 0 6,894 6613 270 11 0 6,452 5986 294 172 0 6,893 6101 291 501 0 VELKÉ POPOVICE Natural gas LPG Biogas (renewable) 5,932 5613 319 0 5,587 5312 275 0 5,431 5162 269 0 4,768 4514 254 0 5,257 4973 284 0 VEĽKÝ ŠARIŠ Natural gas LPG 3,367 3263 104 3,896 3761 135 3,807 3704 103 3,873 3769 104 3,398 3352 46 Indirect emissions Scope 2, breweries (t CO2) 2019 2020 2021 2022 2023 PLZEŇ Electricity Heat Steam from biomass* (renew- able) 32,018 9188 22830 n/a 31,800 9160 22640 n/a 24,522 8974 15578 0 9,749 9749 0 0 9,419 9419 0 0 NOŠOVICE Electricity 3,080 3,515 3,524 3,688 3,706 VELKÉ POPOVICE Electricity 3,105 2,863 2,722 2,638 2,797 VEĽKÝ ŠARIŠ Electricity 1,048 1,120 1,045 1,064 1,016 * heat from biomass since October 2021 Direct emissions Scope 1, malt houses (t CO2) 2019 2020 2021 2022 2023 PLZEŇ n/a n/a n/a n/a n/a NOŠOVICE Natural gas Diesel + light heating oils Biogas (renewable) 4,381 4379 2 0 4,607 4607 n/a 0 4,535 4533 2 0 4,666 3651 1015 0 4,390 3947 443 0 VEĽKÝ ŠARIŠ Natural gas 2,269 2,179 2,209 2,341 2,477 WATER 303-3, 4 (SUMMARY) Water consumption and treatment, CZ (m3) 2019 2020 2021 2022 2023 SOURCE AND CONSUMPTION Municipal water distribution system Company wells 3,196,989 1709800 1487189 3,032,730 1603550 1429180 2,961,387 1453516 1507871 3,082,031 1579441 1502591 3,001,720 1483151 1518569 WASTEWATER Sewerage River 1,824,970 1479527 345443 1,852,134 1493012 359122 1,774,513 1440469 334044 1,741,003 1,452,195 288808 1,450,189 1428088 250041 Water consumption and treatment, SK (m3) 2019 2020 2021 2022 2023 SOURCE AND CONSUMPTION Municipal water distribution system Company wells 363,242 312714 50528 396,649 342661 53988 374,319 320646 53673 411,900 359762 52138 388,259 321278 66981 WASTEWATER Sewerage 269,079 214,532 188,237 243,191 240,596 WASTEWATER TREATMENT PLZEŇ - wastewater to municipal treatment plant, pH neutralization. NOŠOVICE - wastewater is pre-treated in the brewery’s anaerobic system, then it goes to the municipal treatment plant. VELKÉ POPOVICE - wastewater is completely treated by the brewery in the brewery's wastewater treatment plant. VEĽKÝ ŠARIŠ - wastewater to the municipal wastewater treatment plant without pre-treatment. For more information, see the Water chapter. EMISSIONS 305-1, 305-2 We follow the GHG protocol for measurement. We use the National Inventory Report (NIR) https://www.mzp.cz/cz/vypoctove_faktory_emise as the source of emission factors. The emission factor for electricity and purchased cooling was received from suppliers. TOTAL SCOPE 1 A 2, CZ (t CO2) 2019 2020 2021 2022 2023 SCOPE 1 Natural gas LPG Diesel + light heating oils Biogas (renewable) 20,307 18416 1886 6 0 20,589 18829 1750 10 0 20,633 18885 1734 140 0 20,651 16905 1558 2188 0 20,021 17696 1381 944 0 SCOPE 2 Electricity Cooling Heat Steam from biomass* (renewable) 61,439 18861 1192 41386 n/a 58,772 18705 668 39398 n/a 47,122 18474 1105 26828 0 20,445 19708 737 0 0 19,236 19236 0 0 0 SCOPE 1 AND 2 81,746 79,361 67,041 41,096 39,257 TOTAL SCOPE 1 A 2, SK (t CO2) 2019 2020 2021 2022 2023 SCOPE 1 Natural gas LPG 5,636 5532 104 6,075 5939 135 6,016 5913 103 6,213 6109 104 5,875 5829 46 SCOPE 2 Electricity 1,365 1,451 1,345 1,386 1,346 SCOPE 1 AND 2 7,001 7,526 7,361 7,599 7,221 200 201 BACK TO CONTENTS ↑↑  BACK TO CHAPTER CONTENTS ↑ Scope 3 CO2 emissions and Scope 3 CO2 emission intensity per product by GHG Protocol category CZ 2023 SEGMENT GREENHOUSE GAS PROTOCOL CATEGORY TOTAL EMISSIONS (T CO2E) EMISSION INTENSITY (KG CO2E/HL) PACKAGING Total 79,971 8.82 1 Purchase of goods and services 79971 8.82 TRANSPORT AND LOGISTICS Total 48,264 5.32 4 Transport and distribution from suppliers 2533 0.28 9 Transport and distribution to customers 45731 5.04 COOLING Total 71,714 7.91 13 Leased assets at customers 57362 6.32 9 Transport and distribution to customers 14352 1.58 AGRICULTURE AND INGREDIENTS Total 25,079 2.76 1 Purchase of goods and services 25079 2.76 INGREDIENT PROCESSING Total 5,811 0.64 1 Purchase of goods and services 5811 0.64 PRODUCTION IN BREWERIES Total 17,632 1.94 1 Purchase of goods and services 5317 0.59 3 Fuel and energy related activities 12315 1.36 BUSINESS TRAVEL Total 1,284 0.14 1 Purchase of goods and services 1284 0.14 TOTAL  249,754  27.53 SK 2023 SEGMENT GREENHOUSE GAS PROTOCOL CATEGORY TOTAL EMISSIONS (T CO2E) EMISSION INTENSITY (KG CO2E/HL) PACKAGING Total 12,529 10.89 1 Purchase of goods and services 12529 10.89 TRANSPORT AND LOGISTICS Total 5,358 4.66 4 Transport and distribution from suppliers 325 0.28 9 Transport and distribution to customers 5033 4.37 COOLING Total 2,941 2.56 13 Leased assets at customers 1184 1.03 9 Transport and distribution to customers 1757 1.53 AGRICULTURE AND INGREDIENTS Total 5,396 4.69 1 Purchase of goods and services 5396 4.69 INGREDIENT PROCESSING Total 607 0.53 1 Purchase of goods and services 607 0.53 PRODUCTION IN BREWERIES Total 3,632 3.16 1 Purchase of goods and services 2840 2.47 3 Fuel and energy related activities 792 0.69 BUSINESS TRAVEL Total 326 0.28 1 Purchase of goods and services 326 0.28 TOTAL  30,788  26.75 Indirect emissions Scope 2, malt houses (t CO2) 2019 2020 2021 2022 2023 PLZEŇ Electricity Cooling Heat Steam from biomass* (renew- able) 22,323 2573 1193 18556 n/a 19,677 2251 668 16759 n/a 14,709 2354 1105 11250 0 3,490 2753 737 0 0 2,382 2382 0 0 0 NOŠOVICE Electricity 915 916 900 879 932 VEĽKÝ ŠARIŠ Electricity 317 330 299 322 329 * heat from biomass since October 2021 GHG EMISSION INTENSITY PER PRODUCT 305-4 CO2 emissions SCOPE 1 and 2 to the total volume of beer production in breweries CO2 emission intensity (kg CO2e/hl) BREWERIES 2019 2020 2021 2022 2023 Plzen 6.97 7.42 6.14 2.56 2.66 Nošovice 4.62 5.04 4.78 4.41 4.26 Velké Popovice 4.92 5.4 5.41 5.45 4.60 Veľký Šariš 4.32 4.27 4.42 3.99 3.84 CO2 emissions SCOPE 1 and 2 to the total malt production in malt houses CO2 emission intensity (kg CO2e/t) MALT HOUSES 2019 2020 2021 2022 2023 Plzen 270.6 254.2 187.4 39.7 27.54 Nošovice 148.1 155.8 156.1 161.1 148.8 Veľký Šariš 137.05 130.5 131.3 124.9 125.09 For more information, see the Carbon Neutrality chapter. Mazars Accounting, s.r.o. SKY PARK OFFICES 1 Bottova 2A 811 09 Bratislava Mazars Accounting, s.r.o. Registered in the Commercial Registry of the District Court Bratislava III, Section Sro, Item No. 36954/B Plzeňský Prazdroj, a. s. Independent Limited Assurance Report Independent Limited Assurance Report 1 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 2023 („the Report“). Scope and Subject Matter Our limited assurance engagement focused on the 2023 sustainability indicators as presented in the 2021 GRI Content Index of the Report on pages 174 to 179 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. 202 203 BACK TO CONTENTS ↑↑ Independent Limited Assurance Report 2 Our Responsibility Our responsibility is to express a conclusion on the Report content and on the 2023 sustainability indicators as presented in the 2023 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 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 2023 sustainability indicators as presented in the 2023 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 2023 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. Independent Limited Assurance Report 3  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 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 2023 to 31 December 2023 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, 30 September 2024 Mazars Accounting, s.r.o. Jana Ružická Sustainability Director 204 205 BACK TO CONTENTS ↑↑ 206 207 BACK TO CONTENTS ↑↑ Editorial board: Jitka Dvořáková, Ivan Tučník Photos and illustrations: Archives of Plzeňský Prazdroj, Shutterstock Published by: Plzeňský Prazdroj, a. s., U Prazdroje 64/7, 301 00 Plzeň, Czech Republic, www.prazdroj.cz © Plzeňský Prazdroj, October 2024 Graphic de sign andprint:Boomerang C o mmunications.r.o.,ww w .b o omerang.agency www.prazdroj.cz