Overview of progress

Our 10 sustainable development priorities focus on the opportunities and risks resulting from the overall impact of our activities – environmental, social and economic. The table below shows why we consider each to be a priority, the progress we’ve 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

  • 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.

Progress we have made

  • Strengthened internal capabilities by developing a comprehensive employee alcohol education programme. Training of employees continues.
  • Engaged with a range of stakeholders including the WHO.
  • Launched TalkingAlcohol.com website to provide accurate and balanced information.

Targets for this year

  • Continue with the alcohol education training programme for all SABMiller employees.
  • Continue regular engagement with independent experts on alcohol-related issues.
  • Promote TalkingAlcohol.com to more stakeholders.

www.sabmiller.com/alcoholresponsibility

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

  • 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.

Progress we have made

  • Developed new water strategy.
  • Agreed new global water target i.e. reduce water used per hectolitre of lager by 25% by 2015.
  • Improved water efficiency to 4.5 hl/hl.
  • Undertook watershed mapping in approximately 30 sites.
  • Completed detailed value chain water footprinting exercise in South Africa.

Targets for this year

  • Make progress towards new global water target.
  • Undertake detailed value chain water footprint in the Czech Republic.
  • Develop new stakeholder partnerships to address water supply and quality risks.
  • Invest in a total of four new waste water treatment plants within our African, European and Latin American regions.

www.sabmiller.com/water

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

  • 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 soft drinks division in South Africa.

Progress we have made

  • Established new carbon strategy and target i.e. reduce fossil fuel emissions from our sites per hectolitre of lager by 50% by 2020.
  • Improved energy efficiency to 143 MJ/hl lager.
  • Developed carbon footprinting tool – now deployed throughout European brewing operations.
  • Trialled low-carbon fridges in South Africa.

Targets for this year

  • Make progress towards new carbon target.
  • Develop renewable energy toolkit for our operations.
  • Improve our management of carbon in distribution and retail refrigeration.

www.sabmiller.com/energy

Packaging reuse and recycling

Why it is a priority

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

Targets we set last year

  • Trial biodegradable shrinkwrap 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.

Progress we have made

  • Biodegradable shrink-wrap trial successfully completed in South Africa.
  • PET recycling and reuse infrastructure research begun but not completed.
  • Researched sustainable packaging material and inks to determine their potential.

Targets for this year

  • Extend the evaluation of recycling and reuse PET infrastructure with market reviews in Honduras, Romania, South Africa, USA and Zambia.
  • Develop bottle selection tool to assist lightweighting.

www.sabmiller.com/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 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

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

Progress we have made

  • Percentage of waste we reuse or recycle has reduced to 89%, this is partly due to improved data collection and reporting.
  • Formed partnership with UK Government and University of Nottingham to look at generating energy from spent grains.

Targets for this year

  • Investigate more ways to reuse brewery waste.
  • Increase percentage of waste recycled/reused in line with aspiration to achieve a zero-waste brewery system.

www.sabmiller.com/waste

Encouraging enterprise development in our value chains

Why it is a priority

We recognise that our influence extends beyond our own immediate operations to include those of our value chain partners – for example, suppliers of raw materials and distributors of our products.

Targets we set last 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.

Progress we have made

  • PricewaterhouseCoopers (PwC) review of smallholder farmers completed and report published.
  • Created new enterprise development model reflecting best practice.
  • Developed and launched smallholder farming project toolkit.
  • We continued to communicate our Responsible Sourcing Principles to suppliers.

Targets for this year

  • Publish analysis of the economic impact of our activities in the value chain in Honduras and Uganda.
  • Increase number of smallholder farmers within our value chain.

www.sabmiller.com/enterprisedevelopment

Benefitting communities

Why it is a priority

The prosperity of communities and that of our operations are co-dependent. Our corporate social investment (CSI) activities aim to improve the quality of life for local people, helping us to build strong relationships with communities, consumers and our employees.

Targets we set last 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.

Progress we have made

  • Increased our focus on the global priorities of water and enterprise development.
  • Undertook internal review of entrepreneurship programmes and developed best-practice guide.

Targets for this year

  • Expand scope and funding of our entrepreneurship development programmes.
  • Develop water CSI programme for Africa.

www.sabmiller.com/communities

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 and their families and are developing programmes for local communities and suppliers where appropriate. These initiatives are helping to ensure the wellbeing of our staff and the stability of our workforce.

Targets we set last year

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

Progress we have made

  • Increased the percentage of employees and spouses participating in annual VCT.
  • Of the spouses forecast to be HIV-positive, 20% are now on managed healthcare programmes.
  • Increased the number of peer educators by 47%.

Targets for this year

  • Further increase percentage of HIV-positive employees and spouses on our managed healthcare programme.
  • Undertake an updated cost/benefit analysis of our HIV/Aids programmes.

www.sabmiller.com/hivaids

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

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

Progress we have made

  • New Code of Business Conduct and Ethics launched and rolled out across the group.
  • Engaged in human rights dialogues in Colombia and elsewhere.

Targets for this year

  • Engage in community impact studies of the value chains of our soft drinks business in El Salvador and Zambia.
  • Participate in international dialogues on the basic right to water through UN CEO Water Mandate.

www.sabmiller.com/humanrights

Transparency and ethics

Why it is a priority

There is both a demand and an opportunity for companies to be more transparent about their sustainable development (SD) performance. We’re committed both to transparent SD reporting and to high ethical standards in general. To this end, we have a Code of Business Conduct and Ethics which applies to all employees. We also expect all third parties acting on our behalf to comply with this code in all their interactions.

Targets we set last year

  • Conduct detailed investigations into 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.

Progress we have made

  • Conducted detailed investigations in 10 markets through internal reviews and PwC farming review.
  • Began training sustainable development champions.

Targets for this year

  • Train regional sustainable development champions through web seminars with leading experts.
  • Continue stakeholder dialogues on alcohol, water and enterprise development.

www.sabmiller.com/transparency