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Governance

At Bud APAC, the integration of sustainability principles and considerations into our governance framework plays a significant role in our long-term success. Having robust policies and procedures, with regular performance monitoring, training and disclosures set the foundation for us across our daily operations where we operate.

  • Board Oversight

    Bud APAC has consistently focused on effective group management and strives to strengthen our corporate governance system based on the understanding that corporate governance is an essential basis to lead business development and fulfil our purpose over the long-term.

    The Board of Directors (the “Board”) 1 focuses on effective oversight of management’s operation of the business and maintains a sound governance framework by the roles of the Nomination Committee, the Remuneration Committee and the Audit and Risk Committee. These committees are primarily composed of Independent Non-Executive Directors (INEDs) and oversee the business, operational, and financial activities of Bud APAC, with support from the Executive Committee.

    The Board, which is made up of a well-balanced combination of Executive and Non-Executive Directors, presently consists of seven members.



  • Sustainability Committee

    At Bud APAC, sustainability is incorporated at the highest management level, allowing for strategic management of non-financial issues for long-term value creation. The cross-departmental Sustainability Committee reports directly to the CEO and Co-Chair of the Board of Directors, who ultimately reports to the Board.

    During the Reporting Period, the Sustainability Committee spent its time on the topics of 2025 Sustainability Goals, sustainability governance, health and safety, among other topics.

    To ensure effective integration of sustainability across Bud APAC, a Sustainability Working Group, composed of representatives from all departments and operational units, is responsible for providing the Sustainability Committee with updates on target achievements, challenges, risks, opportunities, and local sustainability trends.  

The Duty

  • Our Board of Directors
    • Oversees and approves the overall sustainability approach
    • Evaluates the progress of sustainability efforts
  • CEO and Co-Chair of the Board of Directors
    • Supervises the Sustainability Committee and all department leads
  • Sustainability Committee
    • Monitors the implementation of internal and external sustainability initiatives
    • Executes actions to achieve Sustainability Goals and targets
    • Collaborates with partners to enhance internal and external sustainability performance
    • Ensures compliance with environmental and social laws, regulations, and standards
    • Identifies and addresses climate-related risks, opportunities, and financial impacts
  • Sustainability Working Group
    • Supports the execution of sustainability initiatives and data collection
    • Communicates the latest trends in sustainability to various departments

  • Risk Committee

    To support the Audit and Risk Committee in executing its risk management responsibilities, we have established a Risk Committee consisting of management representatives from different functions, co-chaired by the Chief Financial Officer and the Chief Legal and Corporate Affairs Officer. This Committee adopts a cross-departmental approach, gathering multiple perspectives and expertise from key functions across Bud APAC.

    The Risk Committee convenes quarterly to synthesize and evaluate risks, formulate risk-related recommendations, and ensure their implementation. Where deemed necessary, the Co-Chairs will present recommendations to the CEO and Co-Chair of the Board, and the Audit and Risk Committee regarding the risk appetite, profile, and tolerance established for Bud APAC.

    At the operational level, internal audit teams are tasked with conducting targeted audits of each business unit’s operations, guided by the findings of the annual Enterprise Risk Management (ERM) assessment. Additionally, we conducted an impartial evaluation of the efficacy of our risk management framework, incorporating a comprehensive benchmarking analysis against relevant industry peers.


    Regarding our non-financial risk management, we engaged a third-party agency to verify our performance on carbon reduction, water usage, packaging management, and health and safety, and provide an independent assurance report on certain data points. Please refer to pages 60 to 62 of this Report for detailed information. Further information on our risk management and internal control systems is available on pages 54 to 61 of our Annual Report 2024.


Ethics and Compliance Committee

Bud APAC strictly adheres to all applicable laws and regulations, diligently identifies and assesses risks associated with our operations, and employs appropriate technologies to implement monitoring measures, thereby minimizing compliance risks.


We have established an Ethics and Compliance Committee that is chaired by our CEO & Co-Chair of the Board and comprises of senior members of management. The Committee is responsible for overseeing the Company’s compliance with applicable laws and regulations to ensure that all business activities align with ethical and compliance standards.


To ensure our values are fully embedded, we regularly provide Code of Business Conduct trainings for employees and value chain partners, promoting the awareness regarding Bud APAC’s relevant policies and procedures. During the Reporting Period, the employee participation rate for the Code of Business Conduct training was 100%.


There were no material adverse judgments with respect to ethics and compliance matters (including corrupt practices) against the Group or our employees in 2024.

  • Promotes compliance with applicable laws and regulations and the Bud APAC Code of Business Conduct.
  • Assesses regulatory, ethical and compliance risks for Bud APAC and provides strategic direction for the activities of the Ethics and Compliance team.
  • Exercises comprehensive management oversight of compliance with Bud APAC's internal policies.
  • Reviews the operation of the Compliance programmes and approves follow-up actions (such as disciplinary actions) from the reports submitted through Bud APAC's Compliance Helpline (a confidential whistle-blowing platform).

  • Materiality Assessment

    Stakeholder Engagement Approach


    Bud APAC has various beer products, and our stakeholders have many different expectations. We are committed tostakeholder engagement — a process through which we aim to earn greater trust from stakeholders and cooperate withthem to achieve common goals.


    To sustain our operations amidst an ever-changing competitive landscape, we aspire to anchor our decision-makingprocess on the adept identification of risks and opportunities, while accommodating the expectations of our stakeholders.


    Consequently, we enlisted external consultants to undertake a comprehensive materiality assessment for Bud APAC.We conducted internal and external stakeholder surveys through questionnaires in 2024, as well as through a series ofin-depth interviews. We found that stakeholders have unique needs and expectations for Bud APAC.


    Based on a comprehensive analysis of international sustainability reporting frameworks and industry-specific characteristics, we combined and optimised 14 material issues. Compared to the 23 issues identified last year, our analysis has becomemore precise and focused. This assessment enables us to clearly identify the issues that have significant impacts on BudAPAC and to prioritize our actions accordingly.


  • Materiality Matrix 2024

    This chart illustrates how our Sustainability topics align with the priority areas, and the level of materiality of each topic.
    First-tier Sustainability topics
    Topics with high priority for us to addressand integrate into our sustainability approach.
    Second tier Sustainability topics
    Topics with moderate priority to addressin the near term.
    Third tier Sustainability topics

    Topics with relatively lower priority tokeep in view and reassess.


Our Initiatives to the Top Material Topics

  • Product Quality

    Risks

    Poor product control and food safety management may compromise product quality, leading to potential damage to brand reputation and loss of consumer trust. Stricter product regulations could result in legal disputes and challenges with market access.

    Opportunities

    We invest in technology research and development, optimising quality control process to monitor and refine product quality. This helps meet high consumer demand,foster brand loyalty and support market expansion.

    Our Initiatives

    • Implemented the Food Safety Policy to cultivate a robust food safety culture across operations.

    • Established a food safety risk assessment methodology, which involves conducting process reviews, identifying hazards, assessing risks,implementing control measures, evaluating residual risks and updating food safety plans. This aim is to minimise food safety risks.
    • Dedicated to providing high-quality and secure products to customers by embracing and executing the Operational Management System, Voyager Plant Optimisation and Distribution Process Optimisation frameworks, encompassing the entire journey from cultivation to consumption.
    • Leveraged the Data Factory concept to implement a Laboratory Information Management System, adopt online instruments and  utilise automated quality control equipment, enhancing the efficiency and stability of product quality management.
    • Developed a traceability platform to enable both reverse and forward tracing of products, allowing fora rapid response to production anomalies.
  • Climate

    Risks

    Climate-induced extremes such as floods and droughts may disrupt Bud APAC’s supply chain, increase business costs and potentially destabilise operations. High emissions may lead to regulatory scrutiny and damage our reputation.

    Opportunities

    Collaborating with value chain partners to advance the low-carbon transition via digital capacity-building and carbon footprint mapping reduces our overall greenhouse gas emissions. This proactive approach helps us gain a competitive edge in anticipation of future regulatory trends. Moreover, it can lead to long-term cost savings, especially in the face of potential high carbon tax trends.

    Supporting local farmers in adopting sustainable farming practices improves the quality and reliability of agricultural resources. This reduces supply chain risks and costs, ensuring a stable supply of raw materials for us. Additionally, it can lead to long-term cost savings and improve our financial resilience.

    Our Initiatives

    • Our Scope 1 and 2 emissions have further decreased due to our continuous efforts in decarbonising. For detailed information about our initiatives and progress in this area, please refer to the “Climate Action – Our Initiatives” section on page33.

    • Under our Supplier Strategic Alliance, we have implemented a plan to reduce Scope 3 emissions and are actively assisting suppliers in their transition to low-carbon practices, including initiating projects to replace natural gas with biomass fuel.

    • Supported one of our strategic suppliers in successfully achieving China’s first “carbon-neutral malt house”, in 2024, a result of our efforts in creating a closed-loop green production chain.

    • Accelerated the adoption of RE100* initiative by deploying innovative sustainable technologies in breweries and further developing green logistics solutions, with 16 breweries in China that have already joined the RE100 initiative.

  • Water

    Risks

    As the core ingredient of our production, water shortages may threaten our manufacturing and supply chain due to scarcity and pollution issues.

    Water shortages can lead to increased costs associated with sourcing alternative water supplies or implementing water conservation measures.

    Opportunities

    By optimising water use through advanced technologies and collaborating with communities on water resource protection programmes, we could help minimise water risks, improve cost efficiency and promote sustainable development.

    Regularly conducting comprehensive water withdrawal and risk assessments allows us to identify and address water-related risks in our operations and supply chain. This proactive approach helps us to avoid potential disruptions and costs associated with water shortages, ensuring stable production and supply.

    Our Initiatives

    • Conducted regular water supply risk assessments and water usage reviews across all facilities to minimise water risks

    • Performed water management due diligence and promoted water reduction programmes among our suppliers, encouraging the reduction of water usage throughout the value chain.

    • Partnered with local communities and increased investment in creating water recharge capacity in areas experiencing high-water stress.

  • Agriculture & Natural Ecosystem

    Risks

    Nature may disrupt supply chains and result in cost fluctuation.

    Opportunities

    We invest in sustainable agriculture practices, which help improve raw material quality and stabilise supply. We also participate in biodiversity conservation projects.

    Our Initiatives

    • Conducted comprehensive soil assessments to evaluate nature-related risks, gaining insights into impacts on and dependencies on natural resources.

    • Avoided sourcing materials and operating in designated World Heritage Sites.
    • Provided financial and technological support to local farmers to enhance their capabilities in sustainable sourcing and manufacturing.
    • Implemented mitigation measures to minimise habitat disturbance, degradation, and indirect impacts from operations and the supply chain.
    • Collaborated with academic institutions to develop low-carbon and smart agriculture projects.

  • Circular Packaging

    Risks

    We may face higher taxes or penalties due to stricter packaging regulations. Additionally, our reputation may be affected by increasing consumer awareness of packaging and waste management issues.

    Opportunities

    We collaborate with our value chain partners to explore circular packaging solutions, including the use of returnable and recyclable materials.

    Our Initiatives

    • Assessed waste generation and landfill diversion to identify opportunities for waste reduction.

    • Invested in circular packaging solutions and adopted green procurement practices to reduce waste, phaseout single-use items, and collaborate with suppliers.
    • Promoted incorporation of recycled content,achieving approximately 55% recycled content in our primary packaging.
    • Implemented a ‘Zero Waste’ approach in China to handle and repurpose waste materials.

Our Approach to Ethics and Transparency

Disclosure Items: GRI 205; HKEX B4, B7


Policy Expectations
Code of Business Conduct All employees are expected to uphold the highest standards of business ethics andintegrity, including protecting intellectual properties.

  • Grievance Mechanisms and Non-Retaliation
    In accordance with our ethics values and compliance regulations, any violations must be reported via Bud APAC’s dedicated compliance helpline. We maintain rigorous confidentiality measures for whistleblowers and enforce a policy of zero tolerance to prohibit any form of threatened or actual retaliation against whistleblowers.

  • Supervision and Audit for Business Ethics
    We engage an independent external audit firm to undertake comprehensive compliance audits across all Business Units annually, with a particular emphasis on evaluating adherence to our Anti-Corruption Policy. Through meticulous document reviews and comprehensive interviews, we verify that all Bud APAC operational units rigorously adhere to the AntiCorruption Policy and uphold our pledge to sustainable development initiatives.

  • Intellectual Property Protection
    We rigorously safeguard our intellectual property (trademarks, patents, copyrights) and R&D innovations through proactive registrations, systematic maintenance, and multi-pronged enforcement. Our dedicated IP Team ensures compliance through data analysis (tracking internal metrics and external legal/industry trends), cross-departmental collaboration, and targeted training. By aligning strategic IP governance with stakeholders — from executives overseeing approvals to suppliers clarifying co-development rights — we foster collaboration, ensure full regulatory compliance, and build market confidence by upholding brand values.

  • Employee Training as a Key Component of Business Ethics
    We provided regular anti-corruption trainings to the Directors through Board and Committee meetings, covering topics such as internal compliance policies and investigation trends, annual compliance month and various compliance initiatives. During the Reporting Period, we achieved an employee compliance training rate 100%.

Our Approach to Data Governance

Data Security and Privacy Protection

Physical Security Protection
Committee Deliberation
The Data Centre is secured with restricted access, using man-trap doors, CCTV coverage and electronic card access systems, supported by a strict access authorisation process for security and prompt incident resolution.
The brewery’s Security and Safety Committee meets weekly to assess incidents, pinpoint essential operational and administrative requirements, uncover potential vulnerabilities, and devise risk mitigation approaches.

Information Security Emergency Drill

We conduct routine security activities, including quarterly phishing simulations to annual tabletop exercises and yearly cyber drills to enhance email security awareness, clarify roles during cyber incidents, and improve response processes, helping employees prepare to manage security threats.


Training

Bud APAC requires all personnel to participate in annual information security training to stay updated on data security. Additionally, we provide customised security training sessions for specific teams and specialised training on data masking protocols for project managers and developers.


Third-party Cybersecurity Lifecycle Management

Bud APAC employs a comprehensive Third-Party Risk Management (TPRM) Lifecycle framework for APAC supply chain partners. This includes identifying and tiering third parties based on their access to our data or systems, followed by tailored risk assessments and corrective actions. Additionally, we conduct annual reviews and continuous monitoring of third-party tiers and cybersecurity risks, ensuring timely TPRM assessments and decisions on acceptance or rejection based on post-remediation risk levels.


Digital transformation initiatives

In 2024, Bud APAC prioritized digital transformation across our operations, with a particular focus on enhancing internal systems for downstream retail and B2B teams.

BrewDat System Optimisation One Process Centre (OPC) Bees Digital Sales Platform
Bud APAC leverages real-time data to optimise operational and sales approaches, guiding product placement and inventory adjustments to meet consumer demands. Through the OPC, we streamlined our online procurement process, enhancing procurement transparency and operational efficiency with a unified approach to order placements and related workflows. This tailored online system integrates order placement, inventory tracking and sales analytics, simplifying processes and strengthening the digital sales ecosystem for B2B and downstream retailers.