EABL’s ESG (environmental, social and governance) report provides an overview of the processes and mechanisms we have in place to support our commitment to doing business the right way. We highlight the direct impact our sustainability work is having on our various stakeholders and our communities.

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2021

ABOUT THIS REPORT

This is EABL’s inaugural Sustainability Report. It is the product of two years of research and design, including a detailed materiality assessment. The report highlights our accomplishments between F20 and F21 as part of the Diageo Society 2030: Spirit of Progress. It was prepared in line with Global Reporting Initiative (GRI) standards.

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FROM THE

MANAGEMENT

MESSAGE FROM

THE CHAIRMAN

  • USD $5
    Million

FUND TO HELP PUBS AND BARS RECOVER FROM THE COVID-19 DISRUPTIONS

  • 10
    YEARS

ACTION PLAN TO CREATE A MORE INCLUSIVE AND SUSTAINABLE WORLD

Undoubtedly, 2020 was a year of unprecedented challenges. The COVID-19 pandemic severely impacted everyone’s life and created instability and uncertainty.

EABL responded immediately and effectively. Our top priorities were to safeguard the health and well-being of our people, and to support our communities. We made a substantial contribution through trade and community initiatives across the region. This included a US$5 million fund to help pubs and bars recover from the COVID-19 disruptions.

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MESSAGE FROM

THE MD

  • 17
    Million

OUT OF 17 ADOPTED IN OUR BUSINESS STRATEGY IN THE REGION.

  • 12
    SDGS

FUND TO HELP PUBS AND BARS RECOVER FROM THE COVID-19 DISRUPTIONS

Here at EABL, we recognise that we are in a unique position to respond to global as well as regional challenges our communities face every day. East Africa is largely dependent on natural resources for growth and development. Our business depends on natural resources, from farming and production of our ingredients, to the manufacture and distribution of each and every one of our products.

However, every other day, another research finding, news story or environmental-related disaster comes with more evidence that our planet is in a crisis. Climate change is a persistent threat to the communities that we work in and with.

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MESSAGE FROM

THE MD - Uganda

Uganda is blessed with significant natural resources, which are vital to the country’s development. As UBL, we are pleased to be at the forefront of the country’s sustainable development agenda integrating our business goals with strong environmental, inclusion and stakeholder development goals.

We have invested in a number of projects to improve community access to safe, potable water as well as provided direct livelihood support to over 17,000 farmers countrywide.

Our staff-driven programme dubbed ‘E-Green Team’ has planted thousands of trees around the country and contributed to forest cover restoration in Navugulu Forest and Ggangu Forest. Furthermore, we have invested in a water recovery plant (worth over UGX 10 billion/ $2.8 million) to help us reduce the amount of water utilized in our production processes.

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MESSAGE FROM

THE MD - Tanzania

At SBL, we believe that a strong agricultural sector is crucial for sustaining Tanzania’s economic development. As such, we provide direct support to our network of more than 400 farmers through free seeds, field technical services and linking them to financial institutions to access credit facilities.

We also link our farmers network with students through our agro-scholarship programme, Kilimo viwanda. Students on the programme, who comprise bright children from underprivileged families among farming communities across the country, learn about the farming industry first-hand, giving them an opportunity to link theory to practice in their respective fields of study.

This programme complements the government’s efforts to strengthen the economy of Tanzania by training and building on the existing pool of agricultural experts. To date, over 100 students have benefitted from this program.

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MESSAGE FROM

THE MD - Kenya

We are very proud of the groundbreaking sustainability work our team has implemented around the country. The key for us has been partnerships. We are collaborating with a wide range of stakeholders – from state, to non-state actors – to promote cooperative problem solving and ensure longevity of our projects.

On the environment side, to date, we have planted over 1,300,000 trees around the country with a strong success rate of 85%. Almost 400,00 of these were planted between 2017 and 2021.

KBL has also made significant investments (Ksh. 22 Billion/ $202 million) in retrofitting our plants to be completely green. This includes installing solar energy in all of our sites.

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MESSAGE FROM

THE GROUP CORPORATE RELATIONS DIRECTOR

Sustainability reporting is crucial for any business in this day and age. We strongly believe that if you have marketed or branded yourself as sustainable, you need information to back it up. At EABL, we take reporting to mean sharing concrete sustainability goals, achievements and actions. In our reporting, we share sustainability numbers, figures, years and baselines.

We also share stories; we highlight the many members of the community across our areas of operation who have benefited from our projects and programmes. We want you to hear their experiences, as we jointly learn and plan towards scaling up our activities in the coming years.

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OUR SUSTAINABILITY

STRATEGY

Diageo in Society 2030

In 2020, our parent company Diageo began developing a comprehensive strategy to support sustainable growth over the critical decade to 2030. This included an updated, rigorous materiality assessment to inform the strategy. The findings of this exercise guided the development of the strategic priorities set in ‘Diageo in Society 2030’.

Where we:

  • Live
  • Work
  • Source
  • Sell

With our :

  • Company

    Working with employees, partners and suppliers

  • Communities

    Acting as good corporate citizens and supporting community development

  • Consumers

    Increasing our positive impact through brand partnership

In what matters most

  • Promote posive thinking
  • Champion inclusion and diversity
  • Pioneer grain-to-glass sustainability

For Our:

  • Business
  • Communities
  • Partners

Diageo in Society 2030

Our sustainability work contributes to achieving the Diageo Society 2030 global targets. With the goal of sharing our results with our stakeholders, we track our progress annually against these global targets. For the purposes of our inaugural Sustainability Report, we have organised our achievements according to the following:

EABL
MATERIALITY

What matters most - to our business and to our stakeholders

Late 2020, we carried out our first, in-depth materiality assessment to determine the environmental, social and governance issues that matter most to our business and our stakeholders. Following in the footsteps of Diageo, the materiality assessment looked at external trends shaping EABL’s operating environment in the region and how we can most effectively align EABL’s work with the UN Sustainable Development Goals.

HOW WE DETERMINE OUR MATERIAL ISSUES

We view materiality as a participative process; a business tool that facilitates integrated thinking

OUR GROWING
VALUE TOGETHER PROJECTS

Clean Water and Sanitation

  • Murara in Meru County
  • Sakutiek in Narok County
  • Buchenge in Kericho County
  • Kiaoni in Makueni County
  • Kerwa and Mbomboini in Kiambu County
  • Lukume in Kakamega County
  • Mweiga in Nyeri County
  • Maaini in Kitui County
  • Kiprengwe in Kericho County
  • Olembo in Kisumu County
  • Tebeswet in Bomet County
  • Magunga in Kisumu, Aora Chuodho in Migori and Okiki Amayo in Homa Bay

Homa Bay County

  • Murara in Meru County
  • Kimana in Kajiado County
  • Gaturi in Murang’a County
  • Siandumb in Siaya County
  • Machakos town in Machakos County
  • Jangwani and Kangemi in Nairobi County

Tree planting & Forest protection

  • Naro Moru, Hombe, Kabaru and Gathiuru forests in Nyeri County
  • Ndakaini dam in Murang’a County
  • Kieni forest in Kiambu County
  • Koguta forest Kisumu County
  • Purko community land in Narok County
  • Karura forest in Nairobi County

Water treatment and recovery

  • Kisumu brewery in Kisumu County
  • Tusker house in Nairobi County

Vocational Training

  • Kisumu County
  • Nairobi County
  • Kwale County
  • Kiambu County
  • Murang’a County
  • Nakuru County
  • Makueni County
  • Machakos County
  • Homa Bay County
  • Migori counties County

Local Raw Material Sourcing/ Contract Farming

  • Barley Farming
  • Narok County
  • Meru County
  • Nakuru County
  • Uasin Gishu County
  • Sorghum Farming
  • Tharaka Nithi County
  • Meru County
  • Embu County
  • Kitui County
  • Siaya County
  • Kisumu County
  •  Homa Bay County
  • Migori County
  • Busia County
  • Meru County
  • Narok County
  • Laikipia County

Inclusion of PWDs

  • Homa Bay County

Renewable Energy

  • Kisumu brewery in Kisumu County
  • Tusker house in Nairobi County

Diageo Bar Academy

  • Coast region
  • Lake region
  • Rift valley region
  • Nairobi region
  • Mountain region

Clean Water and Sanitation

  • Amuru, Gulu, Kitgum, Lamwo, Nwoya and Pader in Acholi sub-region, Northern Uganda
  • Apac and Oyam in Lango sub-region, Northern Uganda
  • Busia in Bukedi sub-region, Eastern Uganda
  • Jinja in Busoga sub-region, Eastern Uganda
  • Kaberamaido in Teso sub-region, Eastern Uganda Kapchorwa in Sebei sub-region, Eastern Uganda
  • Bushenyi and Mbarara in Ankole sub-region, Western Uganda
  • Kabale in Kigezi sub-region, Western Uganda
  • Port Bell, Luzira, Nakawa, Mengo, Ggaba, Wakiso and Entebbe in Central region

Tree planting Forest protection

  • Gangu Forest Reserve
  • Navugulu Forest Reserve
  • Nawandigi Forest Reserve
(All are within the Lake Victoria Basin water catchment area in Central region. )

Water treatment and recovery

  • Uganda Breweries in Kampala, Central region

Vocational Training

  • Kisumu brewery in Kisumu County
  • Tusker house in Nairobi County

Vocational Training

  • Gulu, Northern region
  •  Kitgum, Northern region
  • Kampala, Central region
  • Masaka, Central region
  • Kabale, Western region

Local Raw Material Sourcing/ Contract Farming

Barley Farming
  • Kigezi sub-region, Western Uganda
  • Rwenzori sub-region, Western Uganda
  • Sebei sub-region, Eastern Uganda

Sorghum Farming

  • Acholi sub-region, Northern Uganda
  • Lango sub-region, Northern Uganda
  • Teso sub-region, Eastern Uganda

Renewable Energy

  • Uganda Breweries in Kampala in Central region.

Clean Water and Sanitation

  • Basotu in Manyara
  • Machochwe in Mara Region
  • Ngalangal in Manyara
  • Kilimanjaro
  • Mwanza
  • Dar es Salaam
  • Coast
  • Mara

Tree planting & Forest protection

  • Kongwa in Dodoma
  • Same in Kilimanjaro

Kilimo Viwanda-Scholarship

  • Kilimanjaro
  • Arusha
  •  Manyara
  • Dodoma
  • Singida
  • Mwanza
  • Kagera
  • Iringa
  • Mara
  • Bagamoyo
 

Kilimo Viwanda-Scholarship

  • Tanga
  • Kilimanjaro
  • Dar es Salaam
  •  Iringa
  • Singida
  •  Mwanza
  • Dodoma
  • Kagera
  • Iringa
  • Mara
  • Bagamoyo
 

Local Raw Material Sourcing/ Contract Farming

Barley Farming
  • Arusha
  •  Kilimanjaro
  • Manyara
  • Morogoro
  • Singida
  • Mara
  •  Mwanza
  • Iringa
Sorghum Farming
  • Manyara
  • Shinyanga
  • Dodoma
  • Mtwara
  • Iringa
  •  Morogoro

Renewable Energy

  • Uganda Breweries in Kampala in Central region.

PROMOTE

POSITIVE DRINKING

POSITIVE DRINKING:

MOVING TOWARDS HEALTHY CONSUMPTION/ZERO ILLICIT ALCOHOL

Why does it matter?

The consumption of illicit alcohol is widespread across the world, particularly in low and lower-middle income countries, including Kenya, Tanzania and Uganda. According to data published by the World Health Organisation (WHO), about 25 percent of all alcohol consumed globally is unrecorded and as such, not subject to stringent health requirements and quality standards.

Illicit alcohol is unregualted, untaxed and potentially toxic. The International Alliance for Responsible Drinking (IARD) reports that unrecorded beverages may present increased health risks from the presence of toxic compounds (due to denaturation, adulteration, or lack of control during beverage production and/or storage) and a high ethanol content, facilitating intoxication and increasing risk of alcohol poisoning and contaminated water supply. Further, the production and consumption of unrecorded alcohol is closely linked with broader economic variables. The production of illegal alcohol, which is cheaper and often more readily available than regulated alcohol, is largely driven by poverty. The production and consumption of illicit alcohol is fuelled by high unemployment rate, unmet consumer demand, inadequate legislation and weak enforcement.

Our commitment to promoting inclusion and diversity

As a responsible company, EABL wants to make a significant and sustainable impact on creating a more positive role for alcohol in society and making responsible drinking a valued, enjoyable part of life. Bringing unregulated alcohol production into the regulated sector and tackling illicit alcohol is essential in supporting the WHO’s whole-of-society response to the harmful use of alcohol

CHAMPION

INCLUSION & DIVERSITY

BRIDGING GAPS THROUGH

INCLUSION AND DIVERSITY

Why does it matter?

Gender inequality remains a significant impediment to growth and wellbeing across East Africa. Despite great strides in economic growth and increased representation of comen in leadership in the region, significant gender gaps remain. Women lace differential barriers in access to markets, capital, training, and technologies. They are underrepresented in decision-making spheres at all levels. This limits them from reaching their full potential and fully contributing to their countries economies.

According to the United Nations Conference on Trade and Development (UNCTAD), 76% of women in Kenya, /% in Tanzania and // in Uganda still work in agriculture. Women's contribution to home and childcare, which is time-consuming. limits their ability to get paid work. Furthermore, women's land tenure also remains low in the region. For example in Kenya, only 10.3% of women own land while in Uganda, 16% of women have land titles. Women also make up the majority of the poor in the region, where the poorest represent 70% of the East African population. In contrast, men are more likely to find a job and enterprises run by men have easier access to support from institutions such as banks.

Our commitment to promoting inclusion and diversity

Across East Africa, we are committed to driving an ambitious inclusion and diversity strategy that is consistent with our performance targets and relevant to the consumer base we serve. After a number of years focusing predominantly on gender representation, we have taken a more progressive approach, referring our inclusion and diversity strategy to include ethnicity and people with disabilities (PWDS). In each of these areas, we have defined the impact we want to make on industry and society in general. To achieve our ambition, we have signed strategic partnerships with organisations that are trailblazers in building inclusive corporate organisations, including the local chapter of Global Compact. (put a fullstop) Through our partnerships, we encourage the participation of our partners and suppliers and have shared our progressive approach.

PIONEER

GRAIN TO GLASS SUSTAINABILITY

Preserve Water for Life

  • Reduce water use in our operations by increasing usage efficiency by 40% in water-stressed areas and 30% across the company.
  • Improve water availability and quality in 100% of our local communities in water-stressed areas.
  • Replenish more water than we use for our operations in 100% of sites in water-stressed areas by 2026.
  • Invest in improving access to clean water, sanitation, and hygiene (WASH) in communities near our sites and local sourcing areas in 100% of our water-stressed markets.

Accelerate to a low-carbon world

  • Become net-zero carbon in our direct operations (Scope 1 and 2).
  • Reduce our value chain emissions (Scope 3) by 50%.
  • Use 100% of renewable electricity across our direct operations.

Become Sustainable by Design

  • Achieve zero waste in our direct operations and zero waste to landfills in our supply chain.
  • Ensure 100% of our packaging is widely recyclable (or reusable/compostable).
  • Continue our work to reduce total packaging and increase recycled content in our packaging (delivering a 10% reduction in packaging weight and increasing the recycled content of our packaging to 60%).
  • Ensure 100% of our plastics are designed to be widely recyclable (or reusable/compostable) by 2025.
  • Achieve 40% recycled content in our plastics by 2025, and 100% by 2030.
  • Provide 100% of local sourcing communities with agricultural skills and resources; build economic and environmental resilience (supporting 150,000 smallholder farmers).
  • Develop regenerative agriculture pilot programmes in five key sourcing landscapes.
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DOING BUSINESS

THE RIGHT WAY

DOING BUSINESS THE RIGHT WAY

How we Manage Compliance

Doing the right thing, in the right way, is the foundation of our business. That means embedding business integrity into the way we work, every day, everywhere. We remain deeply committed to operating in the right way in everything we do. Compliance and conducting our business with integrity are non-negotiables. We go beyond the basics of risk and compliance to encourage the right behaviours and attitudes everywhere, every day.

EABL’s Business Integrity team ensures the business complies with the Diageo global Code of Business Conduct (COBC) and applicable policies and standards. We undertake annual mandatory policy training, with an integrated Annual Certification of Compliance (ACC) for all employees. This was completed by 100% of eligible employees in 2020. Global training is delivered in an easily accessible e-learning format through My-Learning Hub. Our Know Your Business Partner (KYBP) programme is designed to help us evaluate the risk of doing business with a third party prior to entering into a contractual relationship, as well as monitor any changes throughout our interactions. We assess all our business partners for potential compliance risks such as bribery and corruption, money laundering, tax evasion facilitation, data privacy breaches or other reputational red flags, and implement additional due diligence processes for those that pose a potentially higher risk. Central oversight is provided by our Business Integrity and Legal teams, which undertake regular reviews of the programme’s effectiveness.

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