·While we endeavor to install on-site renewable sources as far as practicable, procuring offsite renewable electricity is a big part of our strategy to ensure we can meet our goal of 100% renewable electricity. There are of course policy and infrastructure constraints in many local markets. Therefore, we strive to collaborate with various partners and local governments to put in place adequate policies that support renewable electricity.


·In China, we have three breweries that achieved RE 100, namely, Wuhan, Ziyang and Kunming. Wuhan brewery will realize carbon neutrality by the end of 2021, which will be the global first within AB-Inbev. There will be another six RE100 breweries in 2022. Additionally, we have installed solar panels in 11 breweries across APAC.

Packaging Materials
Contributing to 42% of our total carbon footprint and therefore we must establish strategies to reduce carbon emissions. We accomplish this, in part, through lightweighting (reducing weight of our bottles and cans), as well as sourcing packaging material made from the majority recycled content. In China, we rolled out a lightweighting project for aluminum cans where approximately 135 tons of aluminum were saved.

Product Cooling
We begin the use our scale to source and install more energy-efficient and eco-friendly chillers, coolers and refrigerants. In China, we required that only coolers labeled with Level 1 Energy Efficiency (representing the most energy-efficient models) should be purchased. Similar requirements are applied to our operations in India for chillers.

Agriculture
Working closely with our farmers, to build resilience through crop management, improved varieties, and risk mitigation tools, while also exploring how agriculture can be part of the solution to reducing GHG emissions. We also build a soil health framework that can sequester atmospheric carbon dioxide.

Operations
We have implemented various measures to improve energy efficiency and reduce carbon emissions in our production and operations. We have replaced coal boilers with natural gas boilers, installed LED lighting and installed biogas collection system to recover a biogas to produce steam that would be reused in the brewing process. The carbon emissions from our operations were reduced by 23% compared to our 2017 baseline.Educating our suppliers on our 2025 Sustainability Goals and encouraging them to implement low-carbon production is one of our priorities. For example, in FY2020, two of our glass suppliers reconstructed their furnaces to burn natural gas instead of coal.

Logistics
Logistics accounts for approximately 5% of our total carbon footprint, making the transport industry a prime source for innovative sustainability solutions. We proactively embrace innovation to explore new approaches to achieve:
1. Green logistics,
2. Adopt new technologies to drive carbon reduction.
3. Pushing for the development of clean energy sources.
Green logistics KPIs are set and reviewed on an annual basis.
Over the past years, we have been working to curb CO2 emissions in the logistics channel by:
1. Deploying alternative energy vehicles and electric forklifts,
2. Upsizing truck capacities,
3. Reducing shipping distances and
4. Shifting from road to rail transportation in China.

Our water replenishment project in India helped to create a farm pond to support irrigation.
With reference to the World Resources Institute’s (“WRI”) Aqueduct tool and our internal custom-made water risk tool, we conduct a comprehensive, seven-step watershed management process at breweries located in water-stress areas annually and quarterly to classify each brewery from “Very High-Risk” to “Low to Medium Risk” sites.

We implement water reduction measures at all 48 of our breweries to reduce reliance on water withdrawals, while at the same time promoting water conservation within our workforce and breweries to guide water-saving practices.
We also monitor the supply chain and apply the WRI Aqueduct tool to ensure that our agricultural commodities are not sourced from water-stressed areas or anticipated to face water stress.

We monitor and review relevant regulations and standards in relation to effluent management intended to ensure 100% compliance in our breweries.
We treat our effluent before discharge to prevent potential impacts associated with water pollutants and ensure that all parameters are within legal limits.
Our breweries in India are all zero effluent discharge.

We aim to improve the availability and quality of water where we operate.
We place high emphasis on China, the most populated country, and India, where many communities have limited access to clean potable water.