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SABMiller plc Annual Report 2007

Overview of progress

Our 10 sustainable development priorities focus us on the opportunities and risks that arise from our environmental, social and economic footprints. The table below shows why we consider each to be a priority, the progress we have made and our future direction.

Discouraging irresponsible drinking

Why it is a priority

Our beer adds to the enjoyment of life for the overwhelming majority of consumers. We care about the harmful effects of irresponsible alcohol consumption and we engage stakeholders and work collectively with them to address irresponsible consumption.

Targets we set last year

  • Evolve the Alcohol Manifesto.
  • Help selected employees to become more fluent on alcohol matters.

Progress we have made

  • Further developed our Alcohol Manifesto into our new Alcohol Framework.
  • Published a revised Code of Commercial Communications.
  • Revised Employee Alcohol Policy.
  • Established position papers on key alcohol issues.
  • Helped several African governments to produce national alcohol policies.

Targets for this year

  • Conduct an alcohol education programme for all SABMiller employees.
  • Continue to engage with key alcohol stakeholders at the local and international level.
  • Launch a website to provide accurate and balanced resources on alcohol for our consumers, employees and other interested stakeholders.

Making more beer with less water

Why it is a priority

Water quality and availability are under threat in some parts of the world. We aim to be more efficient in our water use, understand our watersheds and engage with our suppliers. This will cut costs, reduce risks and benefit local communities.

Targets we set last year

  • Develop a watershed mapping tool to evaluate the risks and opportunities associated with water availability and quality.

Progress we have made

  • Undertook high-level study into long-term water availability for all sites.
  • Developed and introduced a watershed mapping tool.
  • Established guidelines for new capital projects.
  • Signed CEO Water Mandate.

Targets for this year

  • Improve water efficiency.
  • Undertake watershed mapping exercises for around 30 sites in areas at risk of long-term water stress.
  • Undertake a detailed water footprinting exercise to evaluate the water use in our supply chain.

Reducing our energy and carbon footprint

Why it is a priority

We use energy to produce and transport our products. We must become more efficient, manage our carbon footprint and explore cleaner sources of energy. This will save money and resources and reduce our greenhouse gas emissions.

Targets we set last year

  • Develop carbon footprint methodology to understand and manage emissions.
  • Further evaluate the options for using renewable energy.

Progress we have made

  • Quantified the carbon footprint of one international brand.
  • Established guidelines for new capital projects.
  • Renewable energy investments continued, for example our Hungarian business, Dreher, inaugurated its biogas plant, cutting traditional energy consumption by 10%.

Targets for this year

  • Improve energy efficiency.
  • Develop a flexible carbon footprinting tool to evaluate the carbon impact of business decisions such as choice of packaging material or distribution method.
  • Partner Coca-Cola to trial ‘eKO’ low greenhouse gas emission fridges in our ABI operations in South Africa.

Packaging reuse and recycling

Why it is a priority

Packaging protects our products but has wider impacts. We are reducing the weight of our packaging, reusing bottles and encouraging recycling, thereby saving money and raw materials and reducing pressure on local waste services.

Targets we set last year

  • Evaluate where existing packaging materials can be substituted with better alternatives.

Progress we have made

  • Introduced lighter bottles, including the European bottle for Miller Genuine Draft.
  • Integrated minimum standards for materials into our product development process to ensure quality and good environmental credentials.
  • Undertook successful trials of biodegradable shrink-film in Romania and Poland.

Targets for this year

  • Trial biodegradable shrink-wrap in further markets with different climate conditions e.g. South Africa.
  • Identify more sustainable packaging materials and inks.
  • Evaluate recycling and reuse infrastructure for markets which may introduce PET packaging.

Working towards zero waste operations

Why it is a priority

Much of our waste can be a valuable resource for farmers and food producers as well as being a potential energy source. We aim to minimise the amount of waste we send to landfill, so saving money and reducing its environmental impact.

Targets we set last year

  • Review best options for the reuse and recycling of brewery waste streams, initially with Miller in the USA.

Progress we have made

  • Completed review and several operations, including Miller, are now approaching ‘zero-waste’ to landfill.

Targets for this year

  • Reduce the percentage of waste going to landfill.
  • Investigate new opportunities for our brewing wastes, including renewable energy.

Building supply chains that reflect our own commitment

Why it is a priority

The effects of our purchasing are felt around the world. We engage with our suppliers to secure supplies of quality goods and services, reduce reputational risks, provide employment and improve standards of living in developing communities.

Targets we set last year

  • Incorporate Responsible Sourcing Principles into supplier contracts.
  • Field-test good practice agricultural principles.
  • Extend the coverage of our supplier engagement workshops.

Progress we have made

  • Responsible Sourcing Principles becoming part of the supplier evaluation process.
  • Reviewed and tested guidance on agricultural practice. Now carrying out wider review of smallholder farmer activity.
  • Held regional workshops with key European suppliers.
  • 10,500 farmers involved in smallholder programmes.

Targets for this year

  • Review our smallholder farmer programmes to understand the business and social value added and expand and improve their impact.
  • Include social, ethical and environmental criteria in evaluating suppliers of raw materials such as packaging.

Benefiting communities

Why it is a priority

The prosperity of communities and that of our operations are codependent. Our corporate social investment activities aim to improve the quality of life for local people, helping to build strong relationships with suppliers, consumers and our employees.

Targets we set last year

  • Ensure that every operation has a formal corporate social investment strategy.
  • Improve the measurement and evaluation of strategic community investment.
  • SAB Ltd to increase employee involvement in community volunteering to 65%.

Progress we have made

  • All operations now have a formal strategy in place.
  • Continued to embed our systems for data collection.
  • US$30 million cash invested in corporate social investment.
  • Employee volunteering at SAB Ltd estimated to have reached 65%, although data capture needs to be improved.

Targets for this year

  • Improve the focus of our activities on our strategic CSI issues of water, enterprise development and HIV/Aids.
  • Continue to expand our entrepreneurship programmes and identify the value added to improve the quality of these activities.

Contributing to the reduction of HIV/Aids

Why it is a priority

The HIV/Aids pandemic is particularly relevant to our operations in Africa. We have programmes in place for our employees, their families, local communities and suppliers and we share our experiences with our operations around the world. This helps us to ensure the wellbeing of our staff and the stability of our workforce.

Targets we set last year

  • Improve the percentage of spouses and dependants on treatment by continuing to address the fear and stigma engendered by the disease.
  • Run education workshops for community organisations and suppliers in Tanzania and Zimbabwe.
  • Introduce awareness initiatives in two operations outside Africa.

Progress we have made

  • Held education workshops in Tanzania, Zimbabwe, Uganda and Zambia.
  • Published a briefing paper ‘Living and working with HIV/Aids’.
  • Supported and presented at the first ‘Business against Aids’ round table in Russia.
  • Percentage of spouses and dependants on treatment rose from 11% to 14%, with further improvement needed.

Targets for this year

  • Increase participation of employees and their spouses in annual voluntary counselling and testing.
  • Increase the percentage of HIV positive spouses and dependants on managed healthcare programme.
  • Increase number of peer educators in our businesses.

Respecting human rights

Why it is a priority

We conduct our business with respect for national cultures and different local laws, norms and traditions. We promote the values of the international community, notably the Universal Declaration of Human Rights.

Targets we set last year

  • Ensure that all group companies have embedded our human rights principles in their local human resources policies.

Progress we have made

  • All group operations have incorporated human rights principles into their local policies.
  • Principles now being introduced into the value chain.

Targets for this year

  • Introduce our new Code of Business Conduct and Ethics.
  • Contribute to human rights dialogues on a national and global level.

Transparency in reporting our progress

Why it is a priority

External stakeholders should be able to access information easily to enable them to assess our performance against stated values and to make informed judgements about the business. We aim to improve our reporting in response to stakeholder needs.

Targets we set last year

  • Increase frequency of internal reporting by operations to every six months.
  • Encourage the production of local sustainable development reports.

Progress we have made

  • Held stakeholder dialogue sessions on our approach to sustainable development.
  • Instituted twice-yearly reporting on progress on the 10 priorities.
  • Local sustainable development reports becoming more consistent, using our 10 priorities as a framework.

Targets for this year

  • Conduct detailed ‘deep dive’ investigations on sustainable development issues throughout the value chain in four of our emerging markets.
  • Improve qualitative dialogue between operations through training sustainable development champions within each region.

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