Raport Dezvoltare Durabila 2016 engleza -...

Sustainability Report

2015/2016

#oURSUStainability

The first sustainability report in accordance with the GRI Standards

In Romania In the European beer industry

Key results

RON 1,582,551,0581company revenue

RON 81,333,0422EBITDA

02 | Sustainable Development Report 2016

6.07 million HLbeer produced by Ursus Breweries

RON 507,331,0973taxes

63 percentof total spend is used to purchase

products and services from local market

1,410employees

Zeroour work fatality rate

(company and contractors)

3 hl/hlwater consumption / product

71.8 percent non-hazardous waste recycling rate


100 percentcompliant with Romania's legal

requirements according to permits

key results

1 As of 31.12.2015, in full accordance with the Romanian fiscal legislation.2 Idem. 3 The figure includes payments and contributions to national and local budgets (April 1, 2015 – March 31, 2016) such as excise

duties, VAT, income tax, except contributions to social security plans.

As a GRI Standards Pioneer, we are among the first to adopt the new

GRI Standards: global best practice for sustainability reporting. In

doing so we are demonstrating our full support for GRI's mission to

empower decision makers everywhere, through its sustainability

standards and multi-stakeholder network, to take action towards a

more sustainable economy and world.

Key results

RON 1,582,551,0581company revenue

RON 81,333,0422EBITDA


6.07 million HLbeer produced by Ursus Breweries

RON 507,331,0973taxes

63 percentof total spend is used to purchase

products and services from local market

1,410employees

Zeroour work fatality rate

(company and contractors)

3 hl/hlwater consumption / product

71.8 percent non-hazardous waste recycling rate


100 percentcompliant with Romania's legal

requirements according to permits

key results

1 As of 31.12.2015, in full accordance with the Romanian fiscal legislation.2 Idem. 3 The figure includes payments and contributions to national and local budgets (April 1, 2015 – March 31, 2016) such as excise

duties, VAT, income tax, except contributions to social security plans.

As a GRI Standards Pioneer, we are among the first to adopt the new

GRI Standards: global best practice for sustainability reporting. In

doing so we are demonstrating our full support for GRI's mission to

empower decision makers everywhere, through its sustainability

standards and multi-stakeholder network, to take action towards a

more sustainable economy and world.


Contents


Introduction

In this section:

introduction

Introduction

Message from the President

Message from the Corporate Affairs Director

About our company

Our supply chain

Corporate governance

Tracking our brands

Prosper, our shared imperatives and commitments

Our overall performance

Stakeholder dialogue

Materiality assessment

Membership

Business

Local context

Taxes

Economic performance

Innovation

Employees

Health and safety

Labour practices and decent work

Talent acquisition and human resources

Environment

Waste and CO2 emissions

Resource efficiency (water, energy)

Responsibility

Health and safety (consumer health)

Transparency and ethics

Alcohol policy

Product responsibility

About this report

Appendices

GRI Content Index and SDG Compass – cross reference table

Abbreviation list

contents

Ÿ Message from the President and the Corporate Affairs Director

Ÿ About our company

Ÿ Our supply chain

Ÿ Corporate governance

Ÿ Tracking our brands

Ÿ Prosper, our shared imperatives and commitments

Ÿ Our overall performance

Ÿ Stakeholder dialogue

Ÿ Materiality assessment

Ÿ Membership

05

06

07

08

09

10

11

12

13

14

20

22

23

24

25

26

27

29

30

31

32

33

34

35

37

38

38

38

39

41

45

46

52


Contents


Introduction

In this section:

introduction

Introduction



About our company

Our supply chain

Corporate governance

Tracking our brands

Prosper, our shared imperatives and commitments


Stakeholder dialogue

Materiality assessment

Membership

Business

Local context

Taxes


Innovation

Employees

Health and safety


Talent acquisition and human resources

Environment

Waste and CO2 emissions


Responsibility

Health and safety (consumer health)


Alcohol policy


About this report

Appendices


Abbreviation list

contents

Ÿ Message from the President and the Corporate Affairs Director

Ÿ About our company

Ÿ Our supply chain

Ÿ Corporate governance

Ÿ Tracking our brands

Ÿ Prosper, our shared imperatives and commitments

Ÿ Our overall performance

Ÿ Stakeholder dialogue

Ÿ Materiality assessment

Ÿ Membership

05

06

07

08

09

10

11

12

13

14

20

22

23

24

25

26

27

29

30

31

32

33

34

35

37

38

38

38

39

41

45

46

52


Ursus Breweries President

06 | Sustainable Development Report 2016 07 | Sustainable Development Report 2016

Dear reader,

thI am happy to present Ursus Breweries'5 sustainable development report!

This is an open book towards our non-financial performance on 4 pillars - usiness, mployees, nvironment, B E E

Responsibility - that highlights what matters both to us, as well as to our stakeholders.

This is the first sustainable development report in Romania developed with the most demanding international

standards – GRI Standards - which have been launched at the end of 2016 and will be mandatory for parties using stGRI starting with 1 of July 2018. This is also a proof that Ursus Breweries is taking a holistic, responsible approach

in the field of sustainability. We have been on this journey for four years and we are pioneers in the area of

sustainability.

As we often say, we rely on an inseparable relationship with our employees, our partners, our collaborators and

the communities in which we operate. But before anything else, our business means our brands. Let me please note

that Piata Awards 2015 ranked both Timisoreana and Ciucas as Romanian's top favourites, URSUS Black and

Redd's were awarded at the World Beer Awards, while Grolsch was also recognized at Internetics & Webstock

competitions. It's fantastic that our portfolio incorporates brands that have passed the test of time and history,

examples of true legacy, along with modern, innovative brands that set the trends!

As part of Ursus Breweries risk management process, our environmental aspects are assessed thoroughly and

mitigated as much as possible. Our technology is aligned with environmentally related ISO standards and we are

both responsible and accountable for ensuring that our facilities are as green as possible and fully compliant with

local law and European standards. Please note that our water consumption consisted in 3hl/hl of product, as

opposed to the year before, when we registered 3.05 hl/hl in F15. Also, in terms of total direct energy, our results

are 89.58 MJ/hl, in comparison with 92.80 Mj/hl, in F15. The Certificate of Excellence in Forbes Green Awards has

recognized us for the establishment of a long-term program to reduce resource and carbon emissions for the

reporting period.

Despite of external and internal challenges, such as political volatility or the ABI InBev – SABMiller transaction

that had just been announced during the reporting period, we still managed to turn our performance into profit

and profit into prosperity. But our business would have never been

successful without our people. Our results are crafted by talented people.

Career promotion is based at all levels on meritocracy. Our people are

rewarded and advanced based on the impact they have and the results

they deliver. Of the total number of 1,410 employees that we had in F16,

46, 65% are women working in management positions, while in terms

of new hires, our data indicate that 242 candidates were successful

and joined the company.

Ursus Breweries is a living proof that a history of manufacturing a

beloved product that people enjoy can be carried on for centuries,

fuelled by the pride and dedication of people that give life to

BEER. We would be most honoured to have you enjoy the reading

that tells this amazing story! Let me thank you in advance for

responsibly enjoying our beers and for paying attention to the

realities we are creating through our business!

Noroc!

introduction introduction


Dear reader,

Let me also welcome you in the wonderful journey of

#oURSUStainability!

We believe that “victory belongs to the most persevering” (Napoleon

Bonaparte) and we therefore rely on perseverance on everything that we

do. Please allow me to highlight the awards and recognitions that we

have won during the reporting period, but also beforehand:

Ÿ Our second sustainable development report baring the GRI G4

Materiality Disclosures mark, was awarded in 2015:

ü The best report in Romania - Deloitte, Green Frog Competition 2015;

ü Distinction at the European level - Deloitte, Green Frog Competition

2015;

ü Best annual report - PR Award 2015;

ŸrdWe were recognized as the 3 most responsible company in Romania

in 2015, following the non-financial performance of the company;

Ÿ We have received a Certificate of Excellence in Forbes Green Awards, for

the establishment of a long-term program to reduce resource and

carbon emissions, following the sustainable development report;

ŸstWe have received the 1 prize at CSR Awards Gala in 2015 & 2016 for “9 months with 0 alcohol” campaign;

Ÿ We have also received the Silver Award for Excellence, PR Award 2016, Public Communication category, for “9

months with 0 alcohol”.

Leaving any clichés behind, I would like to thank our great people for these wonderful results! They are a natural

sequence of hard work, sustained efforts, consistency and perseverance. It is not much to say that every single

Ursus Breweries employee brought both his/her contribution, as well as his/her unique talent in his/her area of

expertise to strengthen the sustainability infrastructure of the company.

I would also like to thank our partners and collaborators for their dedication to working together, winning

together and making a difference in those shared imperatives that we only have to face together. Last but not least,

I would like to thank our consumers for always motivating us to do more and be more.

I truly hope that you will have a pleasant reading discovering our results, our achievements, our challenges and

unravelling our story!

Chapeau,

Robert Uzuna – Corporate Affairs Director




Dear reader,

thI am happy to present Ursus Breweries'5 sustainable development report!

This is an open book towards our non-financial performance on 4 pillars - usiness, mployees, nvironment, B E E

Responsibility - that highlights what matters both to us, as well as to our stakeholders.

This is the first sustainable development report in Romania developed with the most demanding international

standards – GRI Standards - which have been launched at the end of 2016 and will be mandatory for parties using stGRI starting with 1 of July 2018. This is also a proof that Ursus Breweries is taking a holistic, responsible approach

in the field of sustainability. We have been on this journey for four years and we are pioneers in the area of

sustainability.

As we often say, we rely on an inseparable relationship with our employees, our partners, our collaborators and

the communities in which we operate. But before anything else, our business means our brands. Let me please note

that Piata Awards 2015 ranked both Timisoreana and Ciucas as Romanian's top favourites, URSUS Black and

Redd's were awarded at the World Beer Awards, while Grolsch was also recognized at Internetics & Webstock

competitions. It's fantastic that our portfolio incorporates brands that have passed the test of time and history,

examples of true legacy, along with modern, innovative brands that set the trends!




local law and European standards. Please note that our water consumption consisted in 3hl/hl of product, as

opposed to the year before, when we registered 3.05 hl/hl in F15. Also, in terms of total direct energy, our results

are 89.58 MJ/hl, in comparison with 92.80 Mj/hl, in F15. The Certificate of Excellence in Forbes Green Awards has

recognized us for the establishment of a long-term program to reduce resource and carbon emissions for the

reporting period.

Despite of external and internal challenges, such as political volatility or the ABI InBev – SABMiller transaction

that had just been announced during the reporting period, we still managed to turn our performance into profit

and profit into prosperity. But our business would have never been

successful without our people. Our results are crafted by talented people.

Career promotion is based at all levels on meritocracy. Our people are

rewarded and advanced based on the impact they have and the results

they deliver. Of the total number of 1,410 employees that we had in F16,

46, 65% are women working in management positions, while in terms

of new hires, our data indicate that 242 candidates were successful

and joined the company.

Ursus Breweries is a living proof that a history of manufacturing a

beloved product that people enjoy can be carried on for centuries,

fuelled by the pride and dedication of people that give life to

BEER. We would be most honoured to have you enjoy the reading

that tells this amazing story! Let me thank you in advance for

responsibly enjoying our beers and for paying attention to the

realities we are creating through our business!

Noroc!



Dear reader,

Let me also welcome you in the wonderful journey of

#oURSUStainability!

We believe that “victory belongs to the most persevering” (Napoleon

Bonaparte) and we therefore rely on perseverance on everything that we

do. Please allow me to highlight the awards and recognitions that we

have won during the reporting period, but also beforehand:

Ÿ Our second sustainable development report baring the GRI G4

Materiality Disclosures mark, was awarded in 2015:

ü The best report in Romania - Deloitte, Green Frog Competition 2015;

ü Distinction at the European level - Deloitte, Green Frog Competition

2015;

ü Best annual report - PR Award 2015;

ŸrdWe were recognized as the 3 most responsible company in Romania

in 2015, following the non-financial performance of the company;

Ÿ We have received a Certificate of Excellence in Forbes Green Awards, for

the establishment of a long-term program to reduce resource and

carbon emissions, following the sustainable development report;

ŸstWe have received the 1 prize at CSR Awards Gala in 2015 & 2016 for “9 months with 0 alcohol” campaign;

Ÿ We have also received the Silver Award for Excellence, PR Award 2016, Public Communication category, for “9

months with 0 alcohol”.

Leaving any clichés behind, I would like to thank our great people for these wonderful results! They are a natural

sequence of hard work, sustained efforts, consistency and perseverance. It is not much to say that every single

Ursus Breweries employee brought both his/her contribution, as well as his/her unique talent in his/her area of

expertise to strengthen the sustainability infrastructure of the company.

I would also like to thank our partners and collaborators for their dedication to working together, winning

together and making a difference in those shared imperatives that we only have to face together. Last but not least,

I would like to thank our consumers for always motivating us to do more and be more.

I truly hope that you will have a pleasant reading discovering our results, our achievements, our challenges and

unravelling our story!

Chapeau,

Robert Uzuna – Corporate Affairs Director


About our company introduction introduction

Ursus Breweries SA is the largest beer producer in Romania. We currently operate three large breweries (Brasov,

Buzau and Timisoara) and a mini-production facility in Cluj-Napoca. Our operations also include bottling and

packaging, and wholesale of beer. For detailed information on our operations, please refer to our website:

http://bit.ly/2mdl8m6.

Ursus Breweries is a joint stock company, administered in the dual system, based in Bucharest, district 2, 43 ndFloreasca Park, building A, 2 floor, with the Trade Registry number J40/20456/2005 and unique registration

code 199095.

As a subsidiary of SABMiller Plc, we have been informed by AB InBev that it has submitted an updated package of

commitments to the European Commission (EC) in which it has offered to divest the entirety of SABMiller's

businesses in Central and Eastern Europe. As part of AB InBev's updated package of commitments, the operations

in Romania have been offered for sale.

The proposed divestments are subject to review

and approval by the EC. Any sale would be

conditional upon completion of the AB InBev

acquisition of SABMiller and will be carried out

in the framework of the relevant social processes

and ongoing dialogue with the employee

representatives' bodies. Any sale will complete

after the completion of AB InBev's proposed

acquisition of SABMiller. AB InBev's submission

and updated package of commitments is part of

its approach to proactively address potential

regulatory considerations.

Is to be the most admired company in the Romanian beer industry.

Ÿ Leader by value;

Ÿ Partner of choice;

Ÿ Employer of choice.

Is to grow our consumer base with brands that are the first choice of the consumer for all

occasion.

Ÿ Our people are our enduring advantage;

Ÿ Accountability is clear and personal;

Ÿ We work and win in teams;

Ÿ We understand and respect our customers and consumers;

Ÿ Our reputation is indivisible.

Our vision

Our mission

Our values

Our supply chain

Our value chain is built on six pillars: the handling of incoming

goods, the production, the inter depot movement, warehouse

operations, customer supply and consumer.

Handling incoming goods covers every aspect of receiving

storing and distributing raw and packaging materials used in

the production process. Production takes place in our three

breweries (Brasov, Buzau and Timisoara) and is the pillar

where we see raw materials turning into final products through

brewing and packaging processes. Inter depot movement

consists of the distribution of the final products from our

breweries to the depots. The next pillar is warehouse operation

and is designated to satisfy customer needs and requirements while using the space, equipments and labour

effectively and efficiently. Starting with Customer supply, we rely on our partners, as this is where our sales and

product delivery policies are implemented. Last but not least, to ensure our quality products reach our consumers,

we have developed partnerships with distributors and key accounts.

KA stands for Key Account

http://bit.ly/2mdl8m6


About our company introduction introduction

Ursus Breweries SA is the largest beer producer in Romania. We currently operate three large breweries (Brasov,

Buzau and Timisoara) and a mini-production facility in Cluj-Napoca. Our operations also include bottling and

packaging, and wholesale of beer. For detailed information on our operations, please refer to our website:

http://bit.ly/2mdl8m6.

Ursus Breweries is a joint stock company, administered in the dual system, based in Bucharest, district 2, 43 ndFloreasca Park, building A, 2 floor, with the Trade Registry number J40/20456/2005 and unique registration

code 199095.

As a subsidiary of SABMiller Plc, we have been informed by AB InBev that it has submitted an updated package of

commitments to the European Commission (EC) in which it has offered to divest the entirety of SABMiller's

businesses in Central and Eastern Europe. As part of AB InBev's updated package of commitments, the operations

in Romania have been offered for sale.

The proposed divestments are subject to review

and approval by the EC. Any sale would be

conditional upon completion of the AB InBev

acquisition of SABMiller and will be carried out

in the framework of the relevant social processes

and ongoing dialogue with the employee

representatives' bodies. Any sale will complete

after the completion of AB InBev's proposed

acquisition of SABMiller. AB InBev's submission

and updated package of commitments is part of

its approach to proactively address potential

regulatory considerations.

Is to be the most admired company in the Romanian beer industry.

Ÿ Leader by value;

Ÿ Partner of choice;

Ÿ Employer of choice.

Is to grow our consumer base with brands that are the first choice of the consumer for all

occasion.

Ÿ Our people are our enduring advantage;

Ÿ Accountability is clear and personal;

Ÿ We work and win in teams;

Ÿ We understand and respect our customers and consumers;

Ÿ Our reputation is indivisible.

Our vision

Our mission

Our values

Our supply chain

Our value chain is built on six pillars: the handling of incoming

goods, the production, the inter depot movement, warehouse

operations, customer supply and consumer.

Handling incoming goods covers every aspect of receiving

storing and distributing raw and packaging materials used in

the production process. Production takes place in our three

breweries (Brasov, Buzau and Timisoara) and is the pillar

where we see raw materials turning into final products through

brewing and packaging processes. Inter depot movement

consists of the distribution of the final products from our

breweries to the depots. The next pillar is warehouse operation

and is designated to satisfy customer needs and requirements while using the space, equipments and labour

effectively and efficiently. Starting with Customer supply, we rely on our partners, as this is where our sales and

product delivery policies are implemented. Last but not least, to ensure our quality products reach our consumers,

we have developed partnerships with distributors and key accounts.

KA stands for Key Account

http://bit.ly/2mdl8m6


Corporate governance introduction introduction Tracking our brands

The fact that more than one third of the total beer consumed in Romania is made by Ursus Breweries is a clear

indication of the high quality of the products. Our portfolio includes the following brands: Ursus, Timisoreana,

Ciucas, Grolsch, Peroni Nastro Azzurro, Redd's, Stejar, Azuga, Pilsner Urquell and St. Stefanus.

Members of the Executive Board

Igor Tikhonov


Claudiu Fuiorea

Vice-President Finance

Tiarnán Ó hAimhirgín

Vice-President Sales and Distribution

Alan Sikora

Vice-President Operation

1.

2.

3.

4.

5.

7.

6.

Rob Kenney

Vice-President Human Resources

Mihai Barsan

Vice-President Marketing

Glen Burgess

Vice-President Supply Chain

Robert Uzuna

Corporate Affairs Director

8.

1. 2. 3. 4.

5. 6. 7. 8.


Corporate governance introduction introduction Tracking our brands

The fact that more than one third of the total beer consumed in Romania is made by Ursus Breweries is a clear

indication of the high quality of the products. Our portfolio includes the following brands: Ursus, Timisoreana,

Ciucas, Grolsch, Peroni Nastro Azzurro, Redd's, Stejar, Azuga, Pilsner Urquell and St. Stefanus.

Members of the Executive Board

Igor Tikhonov


Claudiu Fuiorea

Vice-President Finance

Tiarnán Ó hAimhirgín

Vice-President Sales and Distribution

Alan Sikora

Vice-President Operation

1.

2.

3.

4.

5.

7.

6.

Rob Kenney

Vice-President Human Resources

Mihai Barsan

Vice-President Marketing

Glen Burgess

Vice-President Supply Chain

Robert Uzuna

Corporate Affairs Director

8.

1. 2. 3. 4.

5. 6. 7. 8.


Prosper, our shared imperatives and commitments introduction introduction

In 2015, Ursus Breweries has adopted a new sustainable development strategy, Prosper, which integrates

sustainable development into the business through five Shared Imperatives, which tackle the five most material

issues for our business: 1) accelerating growth and social development through our value chains; 2) making beer

the natural choice for the moderate and responsible drinker; 3) securing shared water resources for the business

and local communities; 4) creating value through reduced waste and carbon emissions; 5) supporting responsible

and sustainable use of land for brewing crops.

The five shared imperatives are shared opportunities, that will help us deliver the greatest positive impact for our

business, society and the environment. We've called them imperatives because they're more than priorities –

they're critical for our future success. They are shared because we don't face these challenges on our own and we

will only address them through sharing our local knowledge and collaborating through innovative partnerships.

All our material topics are aligned with the philosophy of the Global Goals. Moreover, as Goal 17 is to establish the

right partnership to deliver the Goals, we put partnerships and collaboration with our stakeholders at the heart of

Prosper.

Accelerating growth

and social

development through

our value

chains

Making beer the

natural choice for the

moderate and

responsible

drinker

Securing shared

water resources

for the business and

local commu-

nities

Creating value

through reduced

waste and

carbon

emissions

Supporting responsibles

and sustainable use

of land for

brewing

crops


Company revenue (RON)

EBITDA (RON)

Taxes (RON)


Aid received from the government (RON)

Social

Personnel

Training hours

Average training per employee (hours)

Employees covered by collective agreement (percent)

Number of union members

Women staff

Woman presence in the Executive Board (total)

Complaints on our Policy of 6Commercial Communications

Environment

Water use / beer produced (hl/hl)

Total energy (MJ)

Organic waste recycled / reused (percentage)

4F13

1,283,000,000

16,340,000

Not material

0

1,499

6,240

4.16

100%

533

471

1

0

3.53

81,999,370.8

99.95

F15

1,416,189,433

43,792,411

457,739,103

0

1,482

536,160

24.40

100%

670

454

0

0

3.05

509,511,831

97.5

F14

1,429,000,000

53,130,000

457,400,000

0

1,514

2,100

1.39

100%

613

468

1

0

3.23

90.7

541,826,700.96

4 F13, F14, F15, F16 – are abbreviations for our financial years. 5 The number includes the 35,914 training hours that covered the Global Template (GT) project, all our employees, no

matter their age, gender or category participating in this training. Global Template is an organizational transformation

project that Ursus Breweries developed in the past, also elaborated in our previous sustainability reports. 6 Official letters of confirmation / endorsement supporting this information have been issued by the Romanian

Advertising Council (RAC), and can be provided upon request.

F16

1,582,551,058

81,333,042

507,331,097

0

1,410

Not material

100%

Not material

422

0

0

3

543,903,692

Not material

Women in management positions (percentage of total female workforce)

Not material Not material 46.68 Not material

Not material


Prosper, our shared imperatives and commitments introduction introduction

In 2015, Ursus Breweries has adopted a new sustainable development strategy, Prosper, which integrates

sustainable development into the business through five Shared Imperatives, which tackle the five most material

issues for our business: 1) accelerating growth and social development through our value chains; 2) making beer

the natural choice for the moderate and responsible drinker; 3) securing shared water resources for the business

and local communities; 4) creating value through reduced waste and carbon emissions; 5) supporting responsible

and sustainable use of land for brewing crops.

The five shared imperatives are shared opportunities, that will help us deliver the greatest positive impact for our

business, society and the environment. We've called them imperatives because they're more than priorities –

they're critical for our future success. They are shared because we don't face these challenges on our own and we

will only address them through sharing our local knowledge and collaborating through innovative partnerships.

All our material topics are aligned with the philosophy of the Global Goals. Moreover, as Goal 17 is to establish the

right partnership to deliver the Goals, we put partnerships and collaboration with our stakeholders at the heart of

Prosper.

Accelerating growth

and social

development through

our value

chains

Making beer the

natural choice for the

moderate and

responsible

drinker

Securing shared

water resources

for the business and

local commu-

nities

Creating value

through reduced

waste and

carbon

emissions

Supporting responsibles

and sustainable use

of land for

brewing

crops


Company revenue (RON)

EBITDA (RON)

Taxes (RON)


Aid received from the government (RON)

Social

Personnel

Training hours

Average training per employee (hours)

Employees covered by collective agreement (percent)

Number of union members

Women staff

Woman presence in the Executive Board (total)

Complaints on our Policy of 6Commercial Communications

Environment

Water use / beer produced (hl/hl)

Total energy (MJ)

Organic waste recycled / reused (percentage)

4F13

1,283,000,000

16,340,000

Not material

0

1,499

6,240

4.16

100%

533

471

1

0

3.53

81,999,370.8

99.95

F15

1,416,189,433

43,792,411

457,739,103

0

1,482

536,160

24.40

100%

670

454

0

0

3.05

509,511,831

97.5

F14

1,429,000,000

53,130,000

457,400,000

0

1,514

2,100

1.39

100%

613

468

1

0

3.23

90.7

541,826,700.96

4 F13, F14, F15, F16 – are abbreviations for our financial years. 5 The number includes the 35,914 training hours that covered the Global Template (GT) project, all our employees, no

matter their age, gender or category participating in this training. Global Template is an organizational transformation

project that Ursus Breweries developed in the past, also elaborated in our previous sustainability reports. 6 Official letters of confirmation / endorsement supporting this information have been issued by the Romanian

Advertising Council (RAC), and can be provided upon request.

F16

1,582,551,058

81,333,042

507,331,097

0

1,410

Not material

100%

Not material

422

0

0

3

543,903,692

Not material

Women in management positions (percentage of total female workforce)

Not material Not material 46.68 Not material

Not material


introduction introduction Stakeholder dialogue

Each year we map and prioritize our stakeholders, exploring a variety of consultation forms and using

different communication channels to ensure effective interaction and to increase the level of trust. This is

particularly important in challenging times, when our business strategy needs to be adapted to new

contexts.

As we did in the past, we started again with a larger pool of stakeholders (community leaders, NGO

representatives, consumers, peers, government and local representatives, academics, suppliers,

managers). Next we have prioritized them by the level of influence: value inquirers (government and

regulators), value vigilantes (academia, NGOs), value creators (suppliers, business partners, local

communities), value makers (employees, managers), and value purchasers (clients, consumers)

according to their role in our value chain.

In F16 we engaged over 200 employees, union representatives, management, customers, local

authorities, academia, NGOs, regulators, suppliers to get their view on the most material sustainability

issues that should be covered by this report. Their contributions helped us determine the materiality

topics, decide the content of the sustainability report and refine our sustainability strategy and

programs. We used their insights to analyze sustainability trends and issues that could become more

significant in the medium term.

Sustainability reporting helped us develop a corporate culture of dialogue through transparency and

open communication channels such as management committees, policy discussions, regular labour-

management meetings, consumer feedback, on-site meetings, open-doors events, social media,

trainings, coaching our suppliers, disclosure platforms, blogs and social media. In addition, we

organized workshops with local stakeholders in each of our home-markets, doubled by one-to-one

interviews.

By continuing to report on an annual basis we hope we continue to meet our stakeholders' high

expectations.

Economic

development

Subject area

Commitment

Creating

prosperity in our

home markets

Knowledge

sharing

Promoting local

tourism both in

home-market and

neighboring areas,

including by

partnering with

specialized

organizations such

as ANTREC

Interested

stakeholder group

Management,

employees, local

authorities, NGOs

Local authorities,

NGOs, academia

Local authorities,

suppliers

Progress

All our home markets (Timisoara,

Cluj-Napoca, Brasov, Buzau):

We continue to purchase significant

volumes of products and services from

the local market. This proves our keen

interest in making our supply chain

healthier and towards the prosperity

of our suppliers and business partners.

The directors of our breweries were

empowered to represent the company

at the local level, i.e. in the community

initiatives. As a company-member of

various associations and contributor to

a wide spectrum of business

initiatives, Ursus Breweries is

committed to advocate for those public

policies and legislative proposals that

are developed in the benefit of local

communities.

We have actively supported the cities

of Timisoara and Cluj-Napoca in their

competition for the European Capitals

of Cultural title.

We have also supported the city of

Brasov in setting a picnic area that

fully meets legal requirements. We are

ready to do the same in Buzau, should

the community need our contribution.

There is an increased need for private

– public knowledge sharing, especially

in smaller cities. We would therefore

explore means of cooperation and try

to strengthen our partnerships.

We have started to reassess these types

of activities, mostly in Timisoara, in

view of focus on and finding a

common path with Timisoreana 300

years anniversary.

102-40

102-42

102-46

102-43 102-44


introduction introduction Stakeholder dialogue

Each year we map and prioritize our stakeholders, exploring a variety of consultation forms and using

different communication channels to ensure effective interaction and to increase the level of trust. This is

particularly important in challenging times, when our business strategy needs to be adapted to new

contexts.

As we did in the past, we started again with a larger pool of stakeholders (community leaders, NGO

representatives, consumers, peers, government and local representatives, academics, suppliers,

managers). Next we have prioritized them by the level of influence: value inquirers (government and

regulators), value vigilantes (academia, NGOs), value creators (suppliers, business partners, local

communities), value makers (employees, managers), and value purchasers (clients, consumers)

according to their role in our value chain.

In F16 we engaged over 200 employees, union representatives, management, customers, local

authorities, academia, NGOs, regulators, suppliers to get their view on the most material sustainability

issues that should be covered by this report. Their contributions helped us determine the materiality

topics, decide the content of the sustainability report and refine our sustainability strategy and

programs. We used their insights to analyze sustainability trends and issues that could become more

significant in the medium term.

Sustainability reporting helped us develop a corporate culture of dialogue through transparency and

open communication channels such as management committees, policy discussions, regular labour-

management meetings, consumer feedback, on-site meetings, open-doors events, social media,

trainings, coaching our suppliers, disclosure platforms, blogs and social media. In addition, we

organized workshops with local stakeholders in each of our home-markets, doubled by one-to-one

interviews.

By continuing to report on an annual basis we hope we continue to meet our stakeholders' high

expectations.

Economic

development

Subject area

Commitment

Creating

prosperity in our

home markets

Knowledge

sharing

Promoting local

tourism both in

home-market and

neighboring areas,

including by

partnering with

specialized

organizations such

as ANTREC

Interested

stakeholder group

Management,

employees, local

authorities, NGOs

Local authorities,

NGOs, academia

Local authorities,

suppliers

Progress

All our home markets (Timisoara,

Cluj-Napoca, Brasov, Buzau):

We continue to purchase significant

volumes of products and services from

the local market. This proves our keen

interest in making our supply chain

healthier and towards the prosperity

of our suppliers and business partners.

The directors of our breweries were

empowered to represent the company

at the local level, i.e. in the community

initiatives. As a company-member of

various associations and contributor to

a wide spectrum of business

initiatives, Ursus Breweries is

committed to advocate for those public

policies and legislative proposals that

are developed in the benefit of local

communities.

We have actively supported the cities

of Timisoara and Cluj-Napoca in their

competition for the European Capitals

of Cultural title.

We have also supported the city of

Brasov in setting a picnic area that

fully meets legal requirements. We are

ready to do the same in Buzau, should

the community need our contribution.

There is an increased need for private

– public knowledge sharing, especially

in smaller cities. We would therefore

explore means of cooperation and try

to strengthen our partnerships.

We have started to reassess these types

of activities, mostly in Timisoara, in

view of focus on and finding a

common path with Timisoreana 300

years anniversary.

102-40

102-42

102-46

102-43 102-44



Economic

development

Subject area

Commitment

Work in

partnership with

government and

local farmers

Demonstrate

leadership in our

industry and home

market

Interested

stakeholder group

Suppliers, local

authorities

Management,

employees, unions,

academia

Progress

Constant engagement with Souffle

Malt, as key partner for local farmers,

in view of addressing the latter's

needs.

Positive feedback received constantly

after our previous sustainable

development report, from internal and

external partners.

Ÿ We were declared the third most

responsible company in Romania,

according to Romania CSR Index,

2015.

Ÿ We received the Excellence

Diploma in the Annual Report

Category, for the first sustainable

development report validated GRI

G4 in Romania, at PR Award, 2015.

ŸstWe won the 1 prize in CSR Gala,

Health Section, for “Zero Alcohol

during Pregnancy”, 2015 & 2016.

Ÿ We were awarded with a Diploma

in Forbes Green Awards, for the

establishment of a long-term

program to reduce resource use and

carbon emissions.

ŸndWe won 2 place for technical

performance of Buzau Brewery, in

“Suppliers' Challenges – Together

against Climate Change” Competition,

organized by Carrefour, 2016.

Social

impact

Subject area

Commitment

Communicate pro-

actively about

responsible

drinking and

leading self-

regulation and co-

regulation

initiatives on

marketing and

commercial

communication

Interested

stakeholder group

Consumers, NGOs,

business

associations

Progress

Final results in Buzau county,

according to the final research by

Cult Market Research, on our

Pregnancy program show:

Ÿ Growth from 13% to 28% (+15%) of

the target's awareness regarding

disorders or syndromes which can

appear in children because of the

mothers' alcohol consumption

during pregnancy.

Ÿ 74% of the people questioned in the

final research of the campaign heard

the “Don't drink alcohol during

pregnancy!” message.

Ÿ 16% of the people interviewed

specifically know details about the

“9 months with 0 alcohol”

campaign.

Ÿ 83% of the respondents consider

that this campaign will determine

future mothers to adopt a

responsible behavior regarding

alcohol consumption during

pregnancy.


that this campaign is important and

it must be continued



during Pregnancy”, both in 2015

and 2016;

102-44102-44



Economic

development

Subject area

Commitment

Work in

partnership with

government and

local farmers

Demonstrate

leadership in our

industry and home

market

Interested

stakeholder group

Suppliers, local

authorities

Management,

employees, unions,

academia

Progress

Constant engagement with Souffle

Malt, as key partner for local farmers,

in view of addressing the latter's

needs.

Positive feedback received constantly

after our previous sustainable

development report, from internal and

external partners.

Ÿ We were declared the third most

responsible company in Romania,

according to Romania CSR Index,

2015.

Ÿ We received the Excellence

Diploma in the Annual Report

Category, for the first sustainable

development report validated GRI

G4 in Romania, at PR Award, 2015.



during Pregnancy”, 2015 & 2016.

Ÿ We were awarded with a Diploma

in Forbes Green Awards, for the

establishment of a long-term

program to reduce resource use and

carbon emissions.

ŸndWe won 2 place for technical

performance of Buzau Brewery, in

“Suppliers' Challenges – Together

against Climate Change” Competition,

organized by Carrefour, 2016.

Social

impact

Subject area

Commitment

Communicate pro-

actively about

responsible

drinking and

leading self-

regulation and co-

regulation

initiatives on

marketing and

commercial

communication

Interested

stakeholder group

Consumers, NGOs,

business

associations

Progress

Final results in Buzau county,

according to the final research by

Cult Market Research, on our

Pregnancy program show:

Ÿ Growth from 13% to 28% (+15%) of

the target's awareness regarding

disorders or syndromes which can

appear in children because of the

mothers' alcohol consumption

during pregnancy.

Ÿ 74% of the people questioned in the

final research of the campaign heard

the “Don't drink alcohol during


Ÿ 16% of the people interviewed

specifically know details about the

“9 months with 0 alcohol”

campaign.


that this campaign will determine

future mothers to adopt a

responsible behavior regarding

alcohol consumption during

pregnancy.


that this campaign is important and

it must be continued



during Pregnancy”, both in 2015

and 2016;

102-44102-44



Social

impact

Subject area

Commitment

Support technical

and vocational

education,

including

scholarships and

internship

programs via

dedicated

initiatives

Interested

stakeholder group

Local authorities,

academia,

management

Progress

Continued our Students for

Community scholarships in Cluj-

Napoca, with 12 scholarships offered

in the reporting period.

We have started working on the

concepts and contracts to extend the

program to our other home-markets,

via a national program in this regard.

Continued our Excellency Awards in

Cluj-Napoca, with 10 awards to have

been awarded in the reporting period.

Support local

NGOs and social

initiatives through

employee

volunteer

programs and

financial aid

NGOs, employees,

unions

Our Volunteering program was

tailored to benefitting communities,

according to the particular necessities

of each home-market.

257 volunteers:

Ÿ Cleaned up Vacaresti Natural Park,

in Bucharest, via Let's do it,

Romania!

Ÿ Cleaned up Brasov's surroundings.

Ÿ Planted 2000 trees near Brasov,

along with Prietenii Padurilor

Association.

Ÿ Planted trees in Buzau, along with

FORES Association.

Ÿ Refurbished a school for socially

disadvantaged students in Cluj-

Napoca.

Ÿ Refurbished a social home for

special needed citizens in Timisoara.

Other NGOs we have worked with:

Ÿ United Way;

Ÿ Community Relations Association;

Ÿ Harmony Association (via The

Cultural Brewery);

Ÿ Volume Federation.

Social

impact

Subject area

Commitment

Support local

authorities in

turning

communities into

better places and in

reaching socially-

excluded groups

Interested

stakeholder group

Local authorities,

NGOs, employees

Progress

Our volunteering program was based

entirely on benefitting communities

and tailored to particular community's

need. Please read the mentioned above

activities.

Protect historical

heritage, support

cultural and artistic

events, as well as

creative industries,

and replicate such

models where and

when possible

Local authorities,

suppliers,

employees

Supported The Cultural Brewery in thCluj, for the 4 year in a row.

Organized Timisoreana Festivities in

Timisoara and Buzau, started to work

on Timisoreana 300 years anniversary,

supported UNTOLD Festival via

URSUS, supported creativity via

Grolsch and Casa di Peroni, via Peroni.

Environmental

footprint

Continue the

water, energy and

carbon footprint

reduction

programs

Management All programs are still in place, while

Romania is one of the SABMiller's best

performing countries in terms of

environmental indicators.

102-44102-44



Social

impact

Subject area

Commitment

Support technical

and vocational

education,

including

scholarships and

internship

programs via

dedicated

initiatives

Interested

stakeholder group

Local authorities,

academia,

management

Progress

Continued our Students for

Community scholarships in Cluj-

Napoca, with 12 scholarships offered

in the reporting period.

We have started working on the

concepts and contracts to extend the

program to our other home-markets,

via a national program in this regard.

Continued our Excellency Awards in

Cluj-Napoca, with 10 awards to have

been awarded in the reporting period.

Support local

NGOs and social

initiatives through

employee

volunteer

programs and

financial aid

NGOs, employees,

unions

Our Volunteering program was

tailored to benefitting communities,

according to the particular necessities

of each home-market.

257 volunteers:

Ÿ Cleaned up Vacaresti Natural Park,

in Bucharest, via Let's do it,

Romania!

Ÿ Cleaned up Brasov's surroundings.

Ÿ Planted 2000 trees near Brasov,

along with Prietenii Padurilor

Association.

Ÿ Planted trees in Buzau, along with

FORES Association.

Ÿ Refurbished a school for socially

disadvantaged students in Cluj-

Napoca.

Ÿ Refurbished a social home for

special needed citizens in Timisoara.

Other NGOs we have worked with:

Ÿ United Way;

Ÿ Community Relations Association;

Ÿ Harmony Association (via The

Cultural Brewery);

Ÿ Volume Federation.

Social

impact

Subject area

Commitment

Support local

authorities in

turning

communities into

better places and in

reaching socially-

excluded groups

Interested

stakeholder group

Local authorities,

NGOs, employees

Progress

Our volunteering program was based

entirely on benefitting communities

and tailored to particular community's

need. Please read the mentioned above

activities.

Protect historical

heritage, support

cultural and artistic

events, as well as

creative industries,

and replicate such

models where and

when possible

Local authorities,

suppliers,

employees

Supported The Cultural Brewery in thCluj, for the 4 year in a row.

Organized Timisoreana Festivities in

Timisoara and Buzau, started to work

on Timisoreana 300 years anniversary,

supported UNTOLD Festival via

URSUS, supported creativity via

Grolsch and Casa di Peroni, via Peroni.

Environmental

footprint

Continue the

water, energy and

carbon footprint

reduction

programs

Management All programs are still in place, while

Romania is one of the SABMiller's best

performing countries in terms of

environmental indicators.

102-44102-44


introduction introduction Materiality assessment

Our sustainable development topics are prioritized in full accordance with their significance to external

and internal stakeholders, and with their boundaries (inside our company, outside the company, or both

inside and outside the company). They are first identified internally, checked against the interests and

expectations of our external stakeholders, tested throughout our participation in industry and cross-

sector initiatives, and then validated through an analysis supported by key performance indicators

(KPIs) collected in our Sustainability Assessment Matrix (SAM).

This year we have refined our materiality matrix, as last year was a time of significant change for us. We

therefore considered we should give our reporting a new focus. We started from a larger directory of

topics, identified throughout the last reporting exercise, and consolidated the inventory of the most

relevant topics. The full list that resulted includes: health and safety, transparency and ethics, alcohol

policy, taxes, waste and CO2 emissions, labour practices and decent work, talent acquisition and human

resources, economic performance, innovation, resource efficiency (water, energy), product

responsibility, corporate governance, training, indirect economic impact, supporting communities,

supply management, procurement practices, packaging, staff-management relations, and knowledge

sharing.

Materiality matrix

Imp

ort

ance

to

ex

tern

al s

tak

eho

lder

s

Importance to internal stakeholders

19

20

18 17

14 16 15 13 12

1 - health and safety

2 - transparency and ethics

3 - alcohol policy

4 – taxes

5 - waste and CO2 emissions

6 - labour practices and decent work

7 - talent acquisition and human resources

8 - economic performance

9 - innovation

10 - resource efficiency (water, energy)

11 - product responsibility

12 - corporate governance

13 – training

14 - indirect economic impact

15 - supporting communities

16 - supply management

17 - procurement practices

18 – packaging

19 - staff-management relations

20 - knowledge sharing

All sustainability topics mentioned above were validated with both internal and external stakeholders

(local authorities, NGOs representatives, academia, suppliers, Ursus Breweries top management). The

final list of topics that are covered by this report is provided below. One mention is related to the health

and safety: in our view this is a broad area and, given the nature of our activity, we decided to cover this

topic both under the Employees section of the report (as occupational health and safety) and in the

Responsibility chapter (as customer health and safety).

Material topics

Health & safety


Alcohol policy

Taxes

Waste & CO2 emissions


Talent acquisition / human resources


Innovation



Pri

ori

ty

Chapter in the report

Impact boundary

Inside the company

7Tier 1

Employees, Responsibility

Responsibility

Responsibility

Business

Environment

Employees

Employees

Business

Business

Environment

Responsibility

1

2

3

4

5

6

7

8

9

10

11

11

10 7

9 86

2 1

34,5

102-46

102-47

102-49

102-47

102-46

102-46

7 Outside the company, close supply chain: suppliers, distributers and business partners.


introduction introduction Materiality assessment

Our sustainable development topics are prioritized in full accordance with their significance to external

and internal stakeholders, and with their boundaries (inside our company, outside the company, or both

inside and outside the company). They are first identified internally, checked against the interests and

expectations of our external stakeholders, tested throughout our participation in industry and cross-

sector initiatives, and then validated through an analysis supported by key performance indicators

(KPIs) collected in our Sustainability Assessment Matrix (SAM).

This year we have refined our materiality matrix, as last year was a time of significant change for us. We

therefore considered we should give our reporting a new focus. We started from a larger directory of

topics, identified throughout the last reporting exercise, and consolidated the inventory of the most

relevant topics. The full list that resulted includes: health and safety, transparency and ethics, alcohol

policy, taxes, waste and CO2 emissions, labour practices and decent work, talent acquisition and human

resources, economic performance, innovation, resource efficiency (water, energy), product

responsibility, corporate governance, training, indirect economic impact, supporting communities,

supply management, procurement practices, packaging, staff-management relations, and knowledge

sharing.

Materiality matrix

Imp

ort

ance

to

ex

tern

al s

tak

eho

lder

s

Importance to internal stakeholders

19

20

18 17

14 16 15 13 12

1 - health and safety

2 - transparency and ethics

3 - alcohol policy

4 – taxes

5 - waste and CO2 emissions

6 - labour practices and decent work

7 - talent acquisition and human resources

8 - economic performance

9 - innovation

10 - resource efficiency (water, energy)

11 - product responsibility

12 - corporate governance

13 – training

14 - indirect economic impact

15 - supporting communities

16 - supply management

17 - procurement practices

18 – packaging

19 - staff-management relations

20 - knowledge sharing

All sustainability topics mentioned above were validated with both internal and external stakeholders

(local authorities, NGOs representatives, academia, suppliers, Ursus Breweries top management). The

final list of topics that are covered by this report is provided below. One mention is related to the health

and safety: in our view this is a broad area and, given the nature of our activity, we decided to cover this

topic both under the Employees section of the report (as occupational health and safety) and in the

Responsibility chapter (as customer health and safety).

Material topics

Health & safety


Alcohol policy

Taxes

Waste & CO2 emissions


Talent acquisition / human resources


Innovation



Pri

ori

ty

Chapter in the report

Impact boundary

Inside the company

7Tier 1

Employees, Responsibility

Responsibility

Responsibility

Business

Environment

Employees

Employees

Business

Business

Environment

Responsibility

1

2

3

4

5

6

7

8

9

10

11

11

10 7

9 86

2 1

34,5

102-46

102-47

102-49

102-47

102-46

102-46

7 Outside the company, close supply chain: suppliers, distributers and business partners.

24 | Raport de Dezvoltare Durabilã 2016 23 | Sustainable Development Report 201622 | Sustainable Development Report 2016

introduction Membership

Ÿ Local context

Ÿ Taxes

Ÿ Economic performance

Ÿ Innovation

In this section:

Business business

Ÿ AmCham Romania (American Chamber of Commerce in Romania):

www.amcham.ro

Ÿ ARAM (Romanian Association of Packaging and Environment):

www.aram.org.ro

Ÿ BR (Brewers of Romania Association): www.berariiromaniei.ro/en/

Ÿ BRCC (The British Romanian Chamber of Commerce):

www.brcconline.eu/

Ÿ ECOROM Ambalaje: www.ecoromambalaje.ro/en/

Ÿ Foreign Investors Council (FIC): www.fic.ro

Ÿ International Advertising Association (IAA): http://www.iaa.ro/

Ÿ Romanian Advertising Council (RAC): www.rac.ro/EN/

Ÿ The Romanian–German Chamber of Industry and Commerce:

http://rumaenien.ahk.de/ro/

We are members

of the following

organizations:

http://www.amcham.ro

http://www.aram.org.ro

http://www.berariiromaniei.ro/en/

http://www.brcconline.eu/

http://www.ecoromambalaje.ro/en/

http://www.fic.ro

http://www.iaa.ro/

http://www.rac.ro/EN/


24 | Raport de Dezvoltare Durabilã 2016 23 | Sustainable Development Report 201622 | Sustainable Development Report 2016

introduction Membership

Ÿ Local context

Ÿ Taxes

Ÿ Economic performance

Ÿ Innovation

In this section:

Business business

Ÿ AmCham Romania (American Chamber of Commerce in Romania):

www.amcham.ro

Ÿ ARAM (Romanian Association of Packaging and Environment):

www.aram.org.ro

Ÿ BR (Brewers of Romania Association): www.berariiromaniei.ro/en/

Ÿ BRCC (The British Romanian Chamber of Commerce):

www.brcconline.eu/

Ÿ ECOROM Ambalaje: www.ecoromambalaje.ro/en/

Ÿ Foreign Investors Council (FIC): www.fic.ro

Ÿ International Advertising Association (IAA): http://www.iaa.ro/

Ÿ Romanian Advertising Council (RAC): www.rac.ro/EN/

Ÿ The Romanian–German Chamber of Industry and Commerce:


We are members

of the following

organizations:

http://www.amcham.ro

http://www.aram.org.ro

http://www.berariiromaniei.ro/en/

http://www.brcconline.eu/

http://www.ecoromambalaje.ro/en/

http://www.fic.ro

http://www.iaa.ro/

http://www.rac.ro/EN/


business


business

8 Source: Foreign Investors' Council Business Sentiment Index .http://bit.ly/2kf361G

Local context

The level of optimism among the business community in Romania related to their local revenues is quite high, 8more then half of those questioned by the Foreign Investors' Council saying that they expect revenues to grow

somewhat (54.3 percent) or significantly (10.9 percent). The same business sentiment applies to the domestic

market, which makes about a third of multinational companies present in Romania to consider investing more in

the year to come.

However, in terms of fiscal burden, the same companies see it as moderately uncompetitive (39.1 percent) or even

significantly uncompetitive (4.3 percent). In addition, about two thirds (66.7 percent) of those rating Romania

against their peer group locations believe the local infrastructure and communication network is uncompetitive.

The same sentiment is expressed towards the bureaucracy that is seen by 91.1 percent of FIC member companies

as uncompetitive.

24| Sustainable Development Report 2016

Material topics

The topics that resulted as material for this reporting cycle and that are covered by this section of the report are:

taxes, our economic performance and innovation.

TaxesIt was during the stakeholder consultation process for our 2013/2014 sustainability report

when we have identified that taxes are of high interest to a number of external stakeholders,

such as local authorities, NGOs and academia. We explained in depth why this issue is

important to us and how we understand to manage it. For details, please access our

2013/2014 report at and read the pages 24 thru 28.http://bit.ly/1LXxyay

Our proactive approach on the matter was constant, and we continue to comply with

Romanian legislation and pay our fair share. We are transparent in communicating our

results, and recognize that tax policy and management are a significant part of running a

responsible business.

In F15, the amount of taxes that we have disbursed to various public budget lines totaled

507,331,097 lei. The most significant amounts were the following:

Ÿ 247,665,753 lei representing the excise tax (48.82 percent);

Ÿ 219,313,773 lei - the VAT (42,23 percent);

Ÿ 20,605,830 lei - the packaging contribution (4.06 percent);

Ÿ 18,486,221 lei - the corporate tax (3.64 percent);

Ÿ 814,018 lei - the special constructions tax (0.16 percent);

Ÿ 267,021 lei - the withholding tax (0.05 percent);

Ÿ 148,354 lei - the cinema fund (0.03 percent).

The rest of 30,127 lei were paid as taxes on prizes, environmental tax and the tax gain from the

stock ownership transfer.

http://bit.ly/2kf361G

http://bit.ly/1LXxyay

business


business

8 Source: Foreign Investors' Council Business Sentiment Index .http://bit.ly/2kf361G

Local context

The level of optimism among the business community in Romania related to their local revenues is quite high, 8more then half of those questioned by the Foreign Investors' Council saying that they expect revenues to grow

somewhat (54.3 percent) or significantly (10.9 percent). The same business sentiment applies to the domestic

market, which makes about a third of multinational companies present in Romania to consider investing more in

the year to come.

However, in terms of fiscal burden, the same companies see it as moderately uncompetitive (39.1 percent) or even

significantly uncompetitive (4.3 percent). In addition, about two thirds (66.7 percent) of those rating Romania

against their peer group locations believe the local infrastructure and communication network is uncompetitive.

The same sentiment is expressed towards the bureaucracy that is seen by 91.1 percent of FIC member companies

as uncompetitive.

24| Sustainable Development Report 2016

Material topics


taxes, our economic performance and innovation.

TaxesIt was during the stakeholder consultation process for our 2013/2014 sustainability report

when we have identified that taxes are of high interest to a number of external stakeholders,

such as local authorities, NGOs and academia. We explained in depth why this issue is

important to us and how we understand to manage it. For details, please access our

2013/2014 report at and read the pages 24 thru 28.http://bit.ly/1LXxyay

Our proactive approach on the matter was constant, and we continue to comply with

Romanian legislation and pay our fair share. We are transparent in communicating our

results, and recognize that tax policy and management are a significant part of running a

responsible business.

In F15, the amount of taxes that we have disbursed to various public budget lines totaled

507,331,097 lei. The most significant amounts were the following:

Ÿ 247,665,753 lei representing the excise tax (48.82 percent);

Ÿ 219,313,773 lei - the VAT (42,23 percent);

Ÿ 20,605,830 lei - the packaging contribution (4.06 percent);

Ÿ 18,486,221 lei - the corporate tax (3.64 percent);

Ÿ 814,018 lei - the special constructions tax (0.16 percent);

Ÿ 267,021 lei - the withholding tax (0.05 percent);

Ÿ 148,354 lei - the cinema fund (0.03 percent).

The rest of 30,127 lei were paid as taxes on prizes, environmental tax and the tax gain from the

stock ownership transfer.

http://bit.ly/2kf361G



business


business

One of the benefits of being committed to transparency, stakeholder dialogue and

sustainability reporting is that we can take the pulse of what is expected from us both from

our internal and external stakeholders. Innovation was among the first topics identified

during our consultation process and slowly increased as relevance until this year, when it

resulted that it is a material topic.

When we talk about innovation, we refer to the quality of our products, to any idea that can

make the consumer experience better and safer, to any improvement of our business

processes, to investment and to recognition.

As our vision is to lead by value, we began to understand how innovation could drag positive

change. Therefore we have learned that we need to improve our approach to this material

topic, including to related data collection. We continue to look into how we could create

better products using the same or less resources without jeopardizing the quality of our

products, or how we could use the GRI Standards in understanding what is the potential of

innovation in the eyes of our stakeholders and for the company.

At the moment, we operate with the following policies:

Ÿ we have a dedicated email address where any of our employees can submit their

innovative ideas and proposals. These messages reach our management and find their

way into our internal monthly newsletter, for review and recognition.

Ÿ a team made of Internal Communication Manager and a HR specialist have started a series

of active listening sessions. Although the initiative was mainly related to our operational

changes and took place in Bucharest, Buzau and Cluj-Napoca, it also included an

innovation component. Any idea that resulted from these exercises was submitted to the

Executive Committee and was included in an active engagement plan.

Ÿ our annual and bi-annual surveys are also opportunities for our employees to express their

vision and submit ideas. Depending on their feasibility, the ideas turn into active plans of

business.

Last year we have invested about 7 million euro in upgrading our breweries with the aim of

maintaining our quality and innovation standards at a high level. The largest investment was

in Brasov.

In terms of consumer experience, our Ursus draught is now served from Crystal Cold freezer,

which turns the beer head into ice crystals and offers the consumer a better experience in

terms of taste and on-premise happening.

InnovationProsper is, to us, the framework that aligns our risks and opportunities, the strengths with

the weaknesses. We are fully aware that all stakeholders - employees, suppliers, local

communities or NGOs - have high expectations from us as a responsible employer and as an

accountable business.

Putting Prosper at the heart of our business enables us to drive growth and commercial

results, while making a sustainable and measurable difference to the communities in which

we operate.

You can read more on our approach to economic performance at http://bit.ly/1LXxyay.

In F16 we provided 1,410 jobs. We paid 507,331,097 lei as taxes. We purchased 63 percent of

total spend is used to purchase products and services from the Romanian market.

Economic

performance



business


business

One of the benefits of being committed to transparency, stakeholder dialogue and

sustainability reporting is that we can take the pulse of what is expected from us both from

our internal and external stakeholders. Innovation was among the first topics identified

during our consultation process and slowly increased as relevance until this year, when it

resulted that it is a material topic.

When we talk about innovation, we refer to the quality of our products, to any idea that can

make the consumer experience better and safer, to any improvement of our business

processes, to investment and to recognition.

As our vision is to lead by value, we began to understand how innovation could drag positive

change. Therefore we have learned that we need to improve our approach to this material

topic, including to related data collection. We continue to look into how we could create

better products using the same or less resources without jeopardizing the quality of our

products, or how we could use the GRI Standards in understanding what is the potential of

innovation in the eyes of our stakeholders and for the company.

At the moment, we operate with the following policies:

Ÿ we have a dedicated email address where any of our employees can submit their

innovative ideas and proposals. These messages reach our management and find their

way into our internal monthly newsletter, for review and recognition.

Ÿ a team made of Internal Communication Manager and a HR specialist have started a series

of active listening sessions. Although the initiative was mainly related to our operational

changes and took place in Bucharest, Buzau and Cluj-Napoca, it also included an

innovation component. Any idea that resulted from these exercises was submitted to the

Executive Committee and was included in an active engagement plan.

Ÿ our annual and bi-annual surveys are also opportunities for our employees to express their

vision and submit ideas. Depending on their feasibility, the ideas turn into active plans of

business.

Last year we have invested about 7 million euro in upgrading our breweries with the aim of

maintaining our quality and innovation standards at a high level. The largest investment was

in Brasov.

In terms of consumer experience, our Ursus draught is now served from Crystal Cold freezer,

which turns the beer head into ice crystals and offers the consumer a better experience in

terms of taste and on-premise happening.

InnovationProsper is, to us, the framework that aligns our risks and opportunities, the strengths with

the weaknesses. We are fully aware that all stakeholders - employees, suppliers, local

communities or NGOs - have high expectations from us as a responsible employer and as an

accountable business.

Putting Prosper at the heart of our business enables us to drive growth and commercial

results, while making a sustainable and measurable difference to the communities in which

we operate.

You can read more on our approach to economic performance at http://bit.ly/1LXxyay.

In F16 we provided 1,410 jobs. We paid 507,331,097 lei as taxes. We purchased 63 percent of

total spend is used to purchase products and services from the Romanian market.

Economic

performance


Employees

In this section:


employees


business

To me, a leader is someone who holds her - or

himself accountable for finding potential in

people and processes. And so what I think is

really important is sustainability.

Brene Brown - Research Professor

at the University of Houston

Graduate College of Social Work

Ÿ Health and safety

Ÿ Labour practices and decent

work

Ÿ Talent acquisition and

human resources

Employees

In this section:


employees


business

To me, a leader is someone who holds her - or

himself accountable for finding potential in

people and processes. And so what I think is

really important is sustainability.

Brene Brown - Research Professor

at the University of Houston

Graduate College of Social Work


Ÿ Labour practices and decent

work

Ÿ Talent acquisition and

human resources


employees


employeesMaterial topics

The topics that resulted as material for the present reporting cycle and that are covered by this section of the report

are: health and safety, labour practices and decent work and talent acquisition and human resources.

Number of employees

1600

1525

1450

1375

1300

2011 2012 2013 2014 2015 2016

14101419

15141499

1415

1344

In Ursus Breweries, we have four Safety Steering Committees, running quarterly meetings.

All our employees are represented in these Committees and meetings, where our

management has the opportunity to consult with both employee representatives and

workforce on the general matters about health & safety.

In additional to regular items that are on the agenda, such as statistics on accident records,

accident investigations and subsequent action, status of action planned to implement health

& safety standards and best practices, risk assessments, health and safety training, new /

revised procedures, changes in the workplace affecting the health, safety and welfare of

employees, our Committees also discuss any health & safety items considered as important.

The organization established one Safety Steering Committee in each of its breweries in

Buzau, Brasov and Timisoara. These Committees are made of employee representatives

from production area (Union members included) and management representative and are

chaired by the Brewery Director.

Health &

safety

At country level, the organization established one Safety Steering Committee chaired by

Board member and made of employee representatives from various functions (e.g. Sales,

Supply Chain, Manufacturing, Human Resources) and Board – 1 members representing the

above-stated functions.

In F16, there were two work related injuries involving Ursus Breweries employees in Buzau

and Brasov breweries. The injury rate (Disabling Injury Frequency rate) for employees at end

of F16 was 0.15 against our 0.38 target. The lost day injury rate for employees at end F16 was

of 8.59 against our 17.00 target. Our employee work fatality rate in F16 was zero.

As per our internal procedures, all major and minor injuries involving employees are

reported. On a monthly basis, the injury reports involving employees are uploaded in the

Incident Database available at regional level.

Ursus Breweries also monitors the working time and injuries of other workers (such as

permanent contractors). The data is reported internally on a monthly basis and is also

uploaded in the Incident Database available at regional level.

According to our data, one injury involving a worker other than employees (e.g. specialized

contractors) was recorded inside Ursus Breweries premises in our Buzau distribution center.

Our contactor work fatality rate in F16 was zero.

Of the total number of 1,410 employees that we had in F16, 422 were women (29.93 percent)

and 988 were men (70.07 percent). In terms of types of contract, 92.55 percent based on

permanent contracts, while the rest (7.45 percent) were covered by fixed-term contracts.

In terms of new hires, our data indicate that 242 candidates were successful and joined the

company. Of them, 191 were men and 51 were women. By age group, we have the following

categories of new hires: 25 women are less than 30 years old, 19 fall within the 30-50 age

category, and seven women are over 50 years old; 91 men are less than 30 years old, 92 fall

within the 30-50 age groups, and eight men are over 50 years old.

Career promotion is based at all levels on meritocracy. Our people are rewarded and advance

based on the impact they have and the results they deliver.

All our employees are covered by collective bargaining agreements, and all of them, no

matter they work based on permanent or fixed-term contracts, have equal access to the same

benefits.

Labour

practices

and

decent work

102-41


employees


employeesMaterial topics


are: health and safety, labour practices and decent work and talent acquisition and human resources.

Number of employees

1600

1525

1450

1375

1300

2011 2012 2013 2014 2015 2016

14101419

15141499

1415

1344

In Ursus Breweries, we have four Safety Steering Committees, running quarterly meetings.

All our employees are represented in these Committees and meetings, where our

management has the opportunity to consult with both employee representatives and

workforce on the general matters about health & safety.

In additional to regular items that are on the agenda, such as statistics on accident records,

accident investigations and subsequent action, status of action planned to implement health

& safety standards and best practices, risk assessments, health and safety training, new /

revised procedures, changes in the workplace affecting the health, safety and welfare of

employees, our Committees also discuss any health & safety items considered as important.

The organization established one Safety Steering Committee in each of its breweries in

Buzau, Brasov and Timisoara. These Committees are made of employee representatives

from production area (Union members included) and management representative and are

chaired by the Brewery Director.

Health &

safety

At country level, the organization established one Safety Steering Committee chaired by

Board member and made of employee representatives from various functions (e.g. Sales,

Supply Chain, Manufacturing, Human Resources) and Board – 1 members representing the

above-stated functions.

In F16, there were two work related injuries involving Ursus Breweries employees in Buzau

and Brasov breweries. The injury rate (Disabling Injury Frequency rate) for employees at end

of F16 was 0.15 against our 0.38 target. The lost day injury rate for employees at end F16 was

of 8.59 against our 17.00 target. Our employee work fatality rate in F16 was zero.

As per our internal procedures, all major and minor injuries involving employees are

reported. On a monthly basis, the injury reports involving employees are uploaded in the

Incident Database available at regional level.

Ursus Breweries also monitors the working time and injuries of other workers (such as

permanent contractors). The data is reported internally on a monthly basis and is also

uploaded in the Incident Database available at regional level.

According to our data, one injury involving a worker other than employees (e.g. specialized

contractors) was recorded inside Ursus Breweries premises in our Buzau distribution center.

Our contactor work fatality rate in F16 was zero.

Of the total number of 1,410 employees that we had in F16, 422 were women (29.93 percent)

and 988 were men (70.07 percent). In terms of types of contract, 92.55 percent based on

permanent contracts, while the rest (7.45 percent) were covered by fixed-term contracts.

In terms of new hires, our data indicate that 242 candidates were successful and joined the

company. Of them, 191 were men and 51 were women. By age group, we have the following

categories of new hires: 25 women are less than 30 years old, 19 fall within the 30-50 age

category, and seven women are over 50 years old; 91 men are less than 30 years old, 92 fall

within the 30-50 age groups, and eight men are over 50 years old.

Career promotion is based at all levels on meritocracy. Our people are rewarded and advance

based on the impact they have and the results they deliver.

All our employees are covered by collective bargaining agreements, and all of them, no

matter they work based on permanent or fixed-term contracts, have equal access to the same

benefits.

Labour

practices

and

decent work

102-41


employees

Our human resources and talent acquisition policy is based on the following principles: we

communicate as widely as possible our job opportunities both internally and externally; we

offer the best opportunities to our internal candidates; we invest in the professional

development of our employees; depending on each vacancy, the decision throughout the

selection process is taken by a pool of employees with different levels of responsibilities; our

HR specialists are always consulted in the selection of the best candidates; our recruitment

procedures is based on bold non-discrimination criteria.

Each vacancy is considered an opportunity to revisit the job requirements, the level of

responsibility and the corresponding pay grade. Whenever we notice any significant

changes in our operations or on the labour market, the line manager in partnership with our

HR department re-evaluate and update the job description.

Any new hire follows the same pattern: the candidate takes a competency-based interview

that is developed by the line manager and the HR specialist. In order to help our managers

prepare themselves for such meetings, we have developed an interview kit that can be

consulted on our Intranet. During the interview, a candidate is evaluated based on a

questionnaire and an interview feedback form that are later on submitted as records to our

HR department. For risk mitigation purposes, we always perform a reference check and

make a final offer only to those candidates that pass all requirements above.

Employee wellbeing is in our company a social performance indicator. Issues that are key to

our staff (such as access to benefits or healthy living) are commonly identified in close

consultation with them and are communicated to all employees on a quarterly basis. Trends

in employee absenteeism and turnover are monitored and used as an indicator of wellness

that was recognized by workplace and health experts as best practice.

About 200 people decided to leave the company in F16. Of the total 225 employees who chose

a different career path, 53 were women (23.56 percent) and the rest were men (76.44 percent).

Additional 31 employees, of whom one man and 30 women, were in parental leave. Fourteen

of them returned to work (one man and 13 women), and two women left the company.

Talent

acquisition

and human

resources

Environment

In this section:

environment

Ÿ Waste and CO2 emissions

Ÿ Resource efficiency (water,

energy)

The firts rule of sustainability is to align with

natural forces, or at least not try to defy

them.

Paul Hawken – Environmentalist


employees

Our human resources and talent acquisition policy is based on the following principles: we

communicate as widely as possible our job opportunities both internally and externally; we

offer the best opportunities to our internal candidates; we invest in the professional

development of our employees; depending on each vacancy, the decision throughout the

selection process is taken by a pool of employees with different levels of responsibilities; our

HR specialists are always consulted in the selection of the best candidates; our recruitment

procedures is based on bold non-discrimination criteria.

Each vacancy is considered an opportunity to revisit the job requirements, the level of

responsibility and the corresponding pay grade. Whenever we notice any significant

changes in our operations or on the labour market, the line manager in partnership with our

HR department re-evaluate and update the job description.

Any new hire follows the same pattern: the candidate takes a competency-based interview

that is developed by the line manager and the HR specialist. In order to help our managers

prepare themselves for such meetings, we have developed an interview kit that can be

consulted on our Intranet. During the interview, a candidate is evaluated based on a

questionnaire and an interview feedback form that are later on submitted as records to our

HR department. For risk mitigation purposes, we always perform a reference check and

make a final offer only to those candidates that pass all requirements above.

Employee wellbeing is in our company a social performance indicator. Issues that are key to

our staff (such as access to benefits or healthy living) are commonly identified in close

consultation with them and are communicated to all employees on a quarterly basis. Trends

in employee absenteeism and turnover are monitored and used as an indicator of wellness

that was recognized by workplace and health experts as best practice.

About 200 people decided to leave the company in F16. Of the total 225 employees who chose

a different career path, 53 were women (23.56 percent) and the rest were men (76.44 percent).

Additional 31 employees, of whom one man and 30 women, were in parental leave. Fourteen

of them returned to work (one man and 13 women), and two women left the company.

Talent

acquisition

and human

resources

Environment

In this section:

environment

Ÿ Waste and CO2 emissions

Ÿ Resource efficiency (water,

energy)

The firts rule of sustainability is to align with

natural forces, or at least not try to defy

them.

Paul Hawken – Environmentalist


environmentenvironmentMaterial topics

Our brewing process generates two types of waste: one that comes from the brewing

processes, and product packaging generates the other.

We focus on three areas: separating waste products to allow reuse or recycling, reducing the

amount of waste we send to waste landfills and reducing the impact on the environment

from the waste we dispose. Also, we have a sustainable approach to the design, use and

disposal of packaging.

Our long-term ambition is to reduce the environmental footprint of our operations by

creating a zero-waste brewing system.

In F16, the total weight of hazardous waste that we generated was 3.6 tons, which were

further on incinerated. As for the non-hazardous waste, the total weight that we generated

amounted to 34,197 tons, of which 18,096 tons, representing dried spent grains and dried

yeast, were sold, 6,456 tons were recycled (aluminum, plastic, wood, cardboard) and the rest

was disposed to the landfill. The waste disposal methods were selected based on the contract

conditions agreed with our contractors.

Investments in the past year were aligned to our environmental policy and were aimed at

decreasing our direct impacts by limiting resource use and by efficiently employing

sustainable technologies. Our target is to reduce the greenhouse gas emissions from our beer

production by 50 per cent per hl of beer produced by 2020.

In terms of GHG emissions, we collect data from all our breweries and report bi-annually

against Prosper targets. Our data is checked and audited in order to reflect accuracy and

comprehensiveness. In F16, as a result of our investments, we managed to reduce the level of

our GHG emissions by 36,901 tones of CO2e.

In addition to the waste water that was generated by our production and that amounted to

10,980,105 hl (total volume of industrial effluent), we also collected storm water from the

concrete platforms through oil separators. These additional volumes were discharged in the

municipal sewage stream. In full compliance with the environmental licenses, each brewery

(Buzau, Brasov and Timisoara) has a sewage stream that is completely separated from the

industrial effluent stream.

Industrial effluents are treated for solids separation, anaerobic and aerobic in order to meet

quality parameters before being discharged into the municipal sewage as included in

Environmental Permits (e.g. NTPA002 with few additional requirements from municipal

sewage operators).

Ursus Breweries effluents are not reused by other organization, instead they are discharged

into the municipal sewage after treatment in each brewery wastewater treatment plant.

Waste and

CO2

emissions


waste and CO2 emissions, and resource efficiency (water and energy). Full disclosures on our management

approach on each of this topics (water use, energy efficiency, waste and emissions) were provided in our

2013/2014 report and can be consulted at (please pages 32 thru 36).http://bit.ly/1LXxyay

Last but not least, we also paid attention to recycling materials that were used in our

production process. The average recycled content percentage of glass was 29.38 in the first

half of F16 and 25.55 in the second half of our financial year; the annual average of recycled

aluminum cans was 55 percent; and the average recycling rate of secondary packaging

(crates, shrink-wrap) was 27.24 percent in the first half of F16 and 22.06 percent on the second

half of our reporting cycle.

Resource

efficiency

(water,

energy)

Our business depends on water, therefore water availability as well as the quality of the

water are critical to us. All our breweries have completed water risk assessments and have in

place action plans to tackle water risk.

In F16, according to the data listed in our water supplier invoices, as well as by Apele

Romane, our total volume of water withdrawal reached 15,280 hl. In terms of sources, we

mostly relied on ground water (14,955,130 hl). The volume of water supplied by public

utilities (municipal) amounted to 3,262,050 hl.

As far as the energy efficiency is concerned, all investments made by our company last year

were aimed at: increasing the energy efficiency of our pasteurization equipment of the

Timisoara glass bottling machines; reducing the amount of energy used in our the PET

bottling lines of Buzau and Timisoara; reducing the energy loss in the condenser and steam

pipelines in Buzau, Brasov and Timisoara; reducing the water use in the refrigerator vacuum

pump of the glass bottling machines in Brasov.

According to the SABMiller plc – Group Technical Procedure GLT.EN.PR.0707 (Energy &

emissions KPI reporting methodology), the total fuel consumption from non-renewable

sources (LPG and natural gas) within Ursus Breweries reached 359,932,099 MJ, of which

9,423,836 MJ represented LPG, and the rest came from natural gas (350,508,263 MJ). From the

renewable sources perspective, the total biogas consumption within the company was

45,279,944 MJ. The total amount of electricity we used for clear beer production during the

reporting cycle was 38,776,899 kWh. The figure includes the consumption required for

cooling and steam. For heating of clear beer production we used 405,212,043 MJ (natural gas,

LPG and biogas).

Part of the energy we produced was sold to third parties. As it was not used for beer

production purposes, we report it separately in the amount of 924,168 MJ.



environmentenvironmentMaterial topics

Our brewing process generates two types of waste: one that comes from the brewing

processes, and product packaging generates the other.

We focus on three areas: separating waste products to allow reuse or recycling, reducing the

amount of waste we send to waste landfills and reducing the impact on the environment

from the waste we dispose. Also, we have a sustainable approach to the design, use and

disposal of packaging.

Our long-term ambition is to reduce the environmental footprint of our operations by

creating a zero-waste brewing system.

In F16, the total weight of hazardous waste that we generated was 3.6 tons, which were

further on incinerated. As for the non-hazardous waste, the total weight that we generated

amounted to 34,197 tons, of which 18,096 tons, representing dried spent grains and dried

yeast, were sold, 6,456 tons were recycled (aluminum, plastic, wood, cardboard) and the rest

was disposed to the landfill. The waste disposal methods were selected based on the contract

conditions agreed with our contractors.

Investments in the past year were aligned to our environmental policy and were aimed at

decreasing our direct impacts by limiting resource use and by efficiently employing

sustainable technologies. Our target is to reduce the greenhouse gas emissions from our beer

production by 50 per cent per hl of beer produced by 2020.

In terms of GHG emissions, we collect data from all our breweries and report bi-annually

against Prosper targets. Our data is checked and audited in order to reflect accuracy and

comprehensiveness. In F16, as a result of our investments, we managed to reduce the level of

our GHG emissions by 36,901 tones of CO2e.

In addition to the waste water that was generated by our production and that amounted to

10,980,105 hl (total volume of industrial effluent), we also collected storm water from the

concrete platforms through oil separators. These additional volumes were discharged in the

municipal sewage stream. In full compliance with the environmental licenses, each brewery

(Buzau, Brasov and Timisoara) has a sewage stream that is completely separated from the

industrial effluent stream.

Industrial effluents are treated for solids separation, anaerobic and aerobic in order to meet

quality parameters before being discharged into the municipal sewage as included in

Environmental Permits (e.g. NTPA002 with few additional requirements from municipal

sewage operators).

Ursus Breweries effluents are not reused by other organization, instead they are discharged

into the municipal sewage after treatment in each brewery wastewater treatment plant.

Waste and

CO2

emissions


waste and CO2 emissions, and resource efficiency (water and energy). Full disclosures on our management

approach on each of this topics (water use, energy efficiency, waste and emissions) were provided in our

2013/2014 report and can be consulted at (please pages 32 thru 36).http://bit.ly/1LXxyay

Last but not least, we also paid attention to recycling materials that were used in our

production process. The average recycled content percentage of glass was 29.38 in the first

half of F16 and 25.55 in the second half of our financial year; the annual average of recycled

aluminum cans was 55 percent; and the average recycling rate of secondary packaging

(crates, shrink-wrap) was 27.24 percent in the first half of F16 and 22.06 percent on the second

half of our reporting cycle.

Resource

efficiency

(water,

energy)

Our business depends on water, therefore water availability as well as the quality of the

water are critical to us. All our breweries have completed water risk assessments and have in

place action plans to tackle water risk.

In F16, according to the data listed in our water supplier invoices, as well as by Apele

Romane, our total volume of water withdrawal reached 15,280 hl. In terms of sources, we

mostly relied on ground water (14,955,130 hl). The volume of water supplied by public

utilities (municipal) amounted to 3,262,050 hl.

As far as the energy efficiency is concerned, all investments made by our company last year

were aimed at: increasing the energy efficiency of our pasteurization equipment of the

Timisoara glass bottling machines; reducing the amount of energy used in our the PET

bottling lines of Buzau and Timisoara; reducing the energy loss in the condenser and steam

pipelines in Buzau, Brasov and Timisoara; reducing the water use in the refrigerator vacuum

pump of the glass bottling machines in Brasov.

According to the SABMiller plc – Group Technical Procedure GLT.EN.PR.0707 (Energy &

emissions KPI reporting methodology), the total fuel consumption from non-renewable

sources (LPG and natural gas) within Ursus Breweries reached 359,932,099 MJ, of which

9,423,836 MJ represented LPG, and the rest came from natural gas (350,508,263 MJ). From the

renewable sources perspective, the total biogas consumption within the company was

45,279,944 MJ. The total amount of electricity we used for clear beer production during the

reporting cycle was 38,776,899 kWh. The figure includes the consumption required for

cooling and steam. For heating of clear beer production we used 405,212,043 MJ (natural gas,

LPG and biogas).

Part of the energy we produced was sold to third parties. As it was not used for beer

production purposes, we report it separately in the amount of 924,168 MJ.



Responsibility responsibility


environmentPerformance




local law and European standards.

In line with our shared imperatives, securing shared water resources and creating value through reducing waste

and carbon emissions, we continued our investment programmes. Also, we managed our operations with a

special focus on resource efficiency, mainly on reducing the water volumes and the amount of energy we use.

In F16, we were compliant with Romanian legal requirements in the environmental sector according to permits

and zero penalties and sanctions.

Water:

3hl/hl of

product

(3.05 hl/hl in

F15)

Total direct

energy:

89.58 MJ/hl

(92.80 Mj/hl in

F15)


(consumer health)

Ÿ Transparency and ethics

Ÿ Alcohol policy

Ÿ Product responsibility

Sustainability can’t be like some sort of a

moral sacrifice or political dilema or a

philanthropical cause. It has to be a design

challenge.

Bjarke Ingels – Danish Architect

In this section:


Responsibility responsibility


environmentPerformance




local law and European standards.

In line with our shared imperatives, securing shared water resources and creating value through reducing waste

and carbon emissions, we continued our investment programmes. Also, we managed our operations with a

special focus on resource efficiency, mainly on reducing the water volumes and the amount of energy we use.

In F16, we were compliant with Romanian legal requirements in the environmental sector according to permits

and zero penalties and sanctions.

Water:

3hl/hl of

product

(3.05 hl/hl in

F15)

Total direct

energy:

89.58 MJ/hl

(92.80 Mj/hl in

F15)


(consumer health)

Ÿ Transparency and ethics

Ÿ Alcohol policy

Ÿ Product responsibility

Sustainability can’t be like some sort of a

moral sacrifice or political dilema or a

philanthropical cause. It has to be a design

challenge.

Bjarke Ingels – Danish Architect

In this section:


Material topics

As mentioned already when we have explained how we assessed our materiality topics,

given our activity and approach to sustainability we decided to cover 'health and safety' in

two separate sections of our report: Employees (as occupational health and safety) and

Responsibility (as consumer health and safety).

We, in Ursus Breweries, are proud to report that in F16 our company registered zero

incidents of non-compliance with regulations that have resulted in fines or penalties, zero

incidents of non-compliance with regulations that have resulted in warnings, and zero

significant incidents of non-compliance with voluntary codes such as ISO standards.

Health and

safety

(consumer

health)


are: transparency and ethics, alcohol policy and product responsibility. As consumer health is crucial for us, we

also included disclosures that in our view complement the material topic “health and safety”.

Transparency and ethics is one of the top priorities in Ursus Breweries. We have a Code of

Conduct that is structured in four major chapters: Compliance and Business Ethics, Our

People and the Working Environment, Customers and Consumers, and Society: Sustainable

Development). The document states clearly the standards we operate with in terms of ethics

and compliance, and includes policies related to protecting company interests and assets,

relationships with business partners, customers, suppliers, and competitors, dealings with

governments, respecting colleagues and communities, and data protection.

The Code is available for consultation on our Intranet, and our employees can access both the

Code and policies in force. The document is user friendly and explains the responsibility of

employees to report wrongdoings. We see the Code as a dynamic tool that is reviewed and

updated regularly in order to include recommendations to the members of the Board that are

collected from our employees.

Transparency

and ethics

9In its 2015 report , the World Health Organization sees alcohol consumption as one of the top

three major public health problems in the European region. However, WHO notices that a 10

percent decrease of the total alcohol consumption was registered during 2005-2010, and

expects the trend would continue the same path in the next few years.

Alcohol

policy

9 Source: The European health report 2015, WHO Regional Office for Europe http://bit.ly/2iNd65W.

Policies and interventions

National alcohol policy and action plan

Excise tax on beer

National legal minimum age for off-premise sales of beer

National legal minimum age for on-premise sales of beer

National maximum legal blood alcohol concentration (BAC) when driving a vehicle (general / young / professional), in %

Legally binding regulations on alcohol advertising / product placement

Legally binding regulations on alcohol sponsorship / sales promotion

Legally required health warning labels on alcohol advertisements

National monitoring system(s)

10Alcohol policies and interventions in Romania

10 Source: World Health Organization (WHO): Romania country profile .http://bit.ly/2iWp9Jw11 Source: Joint EU/WHO report Prevention of harm caused by alcohol exposure to pregnancy. http://bit.ly/2jJMVfC.

ü(revised in 2010)

ü

18

18

zero tolerance

ü

ü

ü

No

In terms of harmful use of alcohol that has consequences on individuals other than the drinker pregnant, women

and children are among the vulnerable population. Therefore we have fully aligned our internal alcohol 11procedures with the Health 2020 European policy on prevention of alcohol-related harm that pays special

attention to healthy pregnancies and women's ability to make informed decisions on when or if having a child.

One key approach to managing our alcohol-related targets is to develop partnerships and strengthen our

relationships with all interested actors, whether they are central or local authorities, NGOs or other stakeholders.

However, we abided by our very strict rules and our company provided no funds or in-kind assistance as political

contributions.

We abide by three other voluntary Codes: the Policy on Commercial Communication, the

Code of Advertising Practice and the Industry Commercial Code of Communication (Berarii

Romaniei). These documents are publicly available at and can be http://bit.ly/1LMZUn8

consulted by any stakeholder.

We are proud to communicate again that in F16 no complaint on our Policy on Commercial

Communication was formulated and submitted to our company or to the Romanian

Advertising Council.

Product

responsibility

responsibilityresponsibility

http://bit.ly/2iNd65W

http://bit.ly/2iWp9Jw

http://bit.ly/2jJMVfC


http://bit.ly/1LMZUn8


Material topics

As mentioned already when we have explained how we assessed our materiality topics,

given our activity and approach to sustainability we decided to cover 'health and safety' in

two separate sections of our report: Employees (as occupational health and safety) and

Responsibility (as consumer health and safety).

We, in Ursus Breweries, are proud to report that in F16 our company registered zero

incidents of non-compliance with regulations that have resulted in fines or penalties, zero

incidents of non-compliance with regulations that have resulted in warnings, and zero

significant incidents of non-compliance with voluntary codes such as ISO standards.

Health and

safety

(consumer

health)


are: transparency and ethics, alcohol policy and product responsibility. As consumer health is crucial for us, we

also included disclosures that in our view complement the material topic “health and safety”.

Transparency and ethics is one of the top priorities in Ursus Breweries. We have a Code of

Conduct that is structured in four major chapters: Compliance and Business Ethics, Our

People and the Working Environment, Customers and Consumers, and Society: Sustainable

Development). The document states clearly the standards we operate with in terms of ethics

and compliance, and includes policies related to protecting company interests and assets,

relationships with business partners, customers, suppliers, and competitors, dealings with

governments, respecting colleagues and communities, and data protection.

The Code is available for consultation on our Intranet, and our employees can access both the

Code and policies in force. The document is user friendly and explains the responsibility of

employees to report wrongdoings. We see the Code as a dynamic tool that is reviewed and

updated regularly in order to include recommendations to the members of the Board that are

collected from our employees.

Transparency

and ethics

9In its 2015 report , the World Health Organization sees alcohol consumption as one of the top

three major public health problems in the European region. However, WHO notices that a 10

percent decrease of the total alcohol consumption was registered during 2005-2010, and

expects the trend would continue the same path in the next few years.

Alcohol

policy

9 Source: The European health report 2015, WHO Regional Office for Europe http://bit.ly/2iNd65W.

Policies and interventions

National alcohol policy and action plan

Excise tax on beer

National legal minimum age for off-premise sales of beer

National legal minimum age for on-premise sales of beer

National maximum legal blood alcohol concentration (BAC) when driving a vehicle (general / young / professional), in %

Legally binding regulations on alcohol advertising / product placement

Legally binding regulations on alcohol sponsorship / sales promotion

Legally required health warning labels on alcohol advertisements

National monitoring system(s)

10Alcohol policies and interventions in Romania

10 Source: World Health Organization (WHO): Romania country profile .http://bit.ly/2iWp9Jw11 Source: Joint EU/WHO report Prevention of harm caused by alcohol exposure to pregnancy. http://bit.ly/2jJMVfC.

ü(revised in 2010)

ü

18

18

zero tolerance

ü

ü

ü

No

In terms of harmful use of alcohol that has consequences on individuals other than the drinker pregnant, women

and children are among the vulnerable population. Therefore we have fully aligned our internal alcohol 11procedures with the Health 2020 European policy on prevention of alcohol-related harm that pays special

attention to healthy pregnancies and women's ability to make informed decisions on when or if having a child.

One key approach to managing our alcohol-related targets is to develop partnerships and strengthen our

relationships with all interested actors, whether they are central or local authorities, NGOs or other stakeholders.

However, we abided by our very strict rules and our company provided no funds or in-kind assistance as political

contributions.

We abide by three other voluntary Codes: the Policy on Commercial Communication, the

Code of Advertising Practice and the Industry Commercial Code of Communication (Berarii

Romaniei). These documents are publicly available at and can be http://bit.ly/1LMZUn8

consulted by any stakeholder.

We are proud to communicate again that in F16 no complaint on our Policy on Commercial

Communication was formulated and submitted to our company or to the Romanian

Advertising Council.

Product

responsibility

responsibilityresponsibility

http://bit.ly/2iNd65W

http://bit.ly/2iWp9Jw



http://bit.ly/1LMZUn8


responsibility


about this report

About this report

Ÿ About this report

In this section:

They succeed, because they think they can.

Virgiliu

Case

study

Execution

The beginning - July 2015 - National Month of

Awareness on Alcohol Consumption Effects and

the start of “9 months with 0 alcohol” campaign.

The campaign ambassador was Dana Rogoz,

actress and responsible mother. Dana was the key

speaker at our seminars and also played one of the

characters in “30+” theatre play.

thThus, with Dana’s support, on September 9 , 2015,

with the occasion of the The International Fetal

Alcohol Syndrome Awareness Day, we launched

the campaign “9 months with 0 alcohol”,

encouraging the public to support and share the

responsibility message under the dedicated

hashtag #9cu0. On the same day, Dana was joined

by lifestyle and parenting journalists and

bloggers, influencers in the online medium.

During October – December 2015, we organized

four informative seminars in: Ramnicu Sarat,

Gheraseni, Pogoanele and Nehoiu, along with the

support of local authorities, Dana Rogoz, Mothers

for Mothers Association and a local doctor.

We also involved Ursus Breweries’ local sales

team and the female staff from Ursus Breweries’

partner shops from Buzau county. They

supported the campaign through the official pin

and distributing informative materials, thus

becoming ambassadors of 9 months with zero

alcohol message.

During the entire campaign period, 201.000

informative flyers with Zero Alcohol during

Pregnancy message were distributed in all the

Public Health Directions in the country. Also, at an

internal level, the activities of the campaign were

constantly communicated towards all Ursus

Breweries employees.

In March 2016, the results and impact were

presented to mass-media representatives, Ursus

Breweries’ partners and authorities.

Evaluation

In December 2015, a new sociological research was

conducted in Buzau County to measure the campaign’s

local impact. Moreover, a Social Return of Investment

type of analysis was started, through the Association for

Community Relations, in order to get an elaborate

understanding of the social benefit of this campaign.

Offline

Ÿ The campaign message reached over 70 opinion

leaders (authorities representatives, journalists,

celebrities);

Ÿ 150 total participants in all four seminars organized in

Buzau county;

Ÿ 201.000 informative flyers distributed in all the Public

Health Directions in the country, out of which 6.000

distributed only in Buzau county.

Online

Ÿ #9cu0 hashtag – more than 14,900 likes and over 1.700

shares of Dana Rogoz’s and Adela Popescu’s posts in

social media (11 posts on Facebook);

Ÿ 131 mentions (TV news, radio news, print articles,

online mentions);

Ÿ 1,966,812 TV/radio/ print audience;

Ÿ 3,265,895 unique visitors;

Ÿ 10,071,648 online impressions;

Internal Communication – Approximately 1.400 of the

company’s employees constantly received internal

communications news about the campaign.

Final results in Buzau county, according to the final

research by Cult Market Research:

Ÿ Growth from 13% to 28% (+15%) of the target’s

awareness regarding disorders or syndromes which

can appear in children because of the mothers’ alcohol

consumption during pregnancy.

Ÿ 74% of the people questioned in the final research of the

campaign heard “Don’t drink alcohol during


Ÿ 16% of the people interviewed specifically know

details about the “9 months with 0 alcohol” campaign.

Ÿ 83% of the respondents consider that this campaign

will determine future mothers to adopt a responsible

behavior regarding alcohol consumption during

pregnancy.

Ÿ 97% of the respondents consider that this campaign is

important and it must be continued.


responsibility


about this report

About this report

Ÿ About this report

In this section:

They succeed, because they think they can.

Virgiliu

Case

study

Execution

The beginning - July 2015 - National Month of

Awareness on Alcohol Consumption Effects and

the start of “9 months with 0 alcohol” campaign.

The campaign ambassador was Dana Rogoz,

actress and responsible mother. Dana was the key

speaker at our seminars and also played one of the

characters in “30+” theatre play.

thThus, with Dana’s support, on September 9 , 2015,

with the occasion of the The International Fetal

Alcohol Syndrome Awareness Day, we launched

the campaign “9 months with 0 alcohol”,

encouraging the public to support and share the

responsibility message under the dedicated

hashtag #9cu0. On the same day, Dana was joined

by lifestyle and parenting journalists and

bloggers, influencers in the online medium.

During October – December 2015, we organized

four informative seminars in: Ramnicu Sarat,

Gheraseni, Pogoanele and Nehoiu, along with the

support of local authorities, Dana Rogoz, Mothers

for Mothers Association and a local doctor.

We also involved Ursus Breweries’ local sales

team and the female staff from Ursus Breweries’

partner shops from Buzau county. They

supported the campaign through the official pin

and distributing informative materials, thus

becoming ambassadors of 9 months with zero

alcohol message.

During the entire campaign period, 201.000

informative flyers with Zero Alcohol during

Pregnancy message were distributed in all the

Public Health Directions in the country. Also, at an

internal level, the activities of the campaign were

constantly communicated towards all Ursus

Breweries employees.

In March 2016, the results and impact were

presented to mass-media representatives, Ursus

Breweries’ partners and authorities.

Evaluation

In December 2015, a new sociological research was

conducted in Buzau County to measure the campaign’s

local impact. Moreover, a Social Return of Investment

type of analysis was started, through the Association for

Community Relations, in order to get an elaborate

understanding of the social benefit of this campaign.

Offline

Ÿ The campaign message reached over 70 opinion

leaders (authorities representatives, journalists,

celebrities);

Ÿ 150 total participants in all four seminars organized in

Buzau county;

Ÿ 201.000 informative flyers distributed in all the Public

Health Directions in the country, out of which 6.000

distributed only in Buzau county.

Online

Ÿ #9cu0 hashtag – more than 14,900 likes and over 1.700

shares of Dana Rogoz’s and Adela Popescu’s posts in

social media (11 posts on Facebook);

Ÿ 131 mentions (TV news, radio news, print articles,

online mentions);

Ÿ 1,966,812 TV/radio/ print audience;

Ÿ 3,265,895 unique visitors;

Ÿ 10,071,648 online impressions;

Internal Communication – Approximately 1.400 of the

company’s employees constantly received internal

communications news about the campaign.

Final results in Buzau county, according to the final

research by Cult Market Research:

Ÿ Growth from 13% to 28% (+15%) of the target’s

awareness regarding disorders or syndromes which

can appear in children because of the mothers’ alcohol

consumption during pregnancy.

Ÿ 74% of the people questioned in the final research of the

campaign heard “Don’t drink alcohol during


Ÿ 16% of the people interviewed specifically know

details about the “9 months with 0 alcohol” campaign.

Ÿ 83% of the respondents consider that this campaign

will determine future mothers to adopt a responsible

behavior regarding alcohol consumption during

pregnancy.

Ÿ 97% of the respondents consider that this campaign is

important and it must be continued.

About this report

The structure of this report follows our Prosper commitments and those subjects identified as material to our

stakeholders. It is divided into four major chapters ( eer, mployees, nvironment, and esponsibility) in order B E E R

to reflect our activity: we make . BEER

This report has been prepared in accordance with the GRI Standards: Core option. Our progress is also tracked

against the Sustainable Development Goals (SDGs).

SABMiller has been informed by AB InBev that it has submitted an updated package of commitments to the

European Commission (EC) in which it has offered to divest the entirety of SABMiller's businesses in Central and

Eastern Europe. This is in addition to the agreed sale of Peroni, Grolsch and Meantime and their related businesses

to Asahi. As part of AB InBev's updated package of commitments, the following businesses have been offered for

sale: Dreher Breweries (Hungary); Kompania Piwowarska (Poland); Plzenský Prazdroj and Pivovary Topvar

(Czech Republic and Slovakia); and Ursus Breweries (Romania). These businesses include a number of leading

brands in their markets and AB InBev expects to attract considerable interest from potential buyers.

The proposed divestments are subject to review and approval by the EC. Any sale would be conditional upon

completion of the AB InBev acquisition of SABMiller and will be carried out in the framework of the relevant social

processes and ongoing dialogue with the employee representatives' bodies. Any sale will complete after the

completion of AB InBev's proposed acquisition of SABMiller.

AB InBev's submission and updated package of commitments is part of its approach to proactively address

potential regulatory considerations.

Apart of the above, no other significant change in reporting scope, boundary or measurement

techniques have been made compared to our 2015/2016 sustainability report.

We have asked several stakeholders to review the Report and provide their independent view on our

performance and reporting. Their commentary is published in both the print and online formats of our

report.


This sustainability report covers the performance of Ursus Breweries SA business

operations across Romania in our owned production units (Timisoara, Cluj-Napoca,

Brasov and Buzau) and in our headquarters. The term 'production units' means breweries.

The information disclosed in the report has national coverage unless otherwise stated.

Where appropriate, we mentioned that data for some of our operations is unavailable.

We have outsourced several services (HR payroll, transportation, including the

commercial fleet, Procure to Pay – partially, Record to Report – partially, Order to cash -

partially). As we have no available data on their impacts, they are not covered by this

report.


All data in this report cover the 2015/2016 financial year (F16 = April 1, 2015 – March 31,

2016) unless otherwise stated. Relevant information covering the first half of the year 2016

(F17 H1) was also included.

Report

boundary

about this report

about this report

Reporting

period

This is Ursus Breweries SA fifth sustainability report, and the fourth issued in accordance

to GRI and United Nations Global Compact guidelines. As we see ourselves as pioneers in

our own industry, we have decided to break new grounds and adopt the use the GRI

Standards before they become mandatory.

The document reflects Ursus Breweries SA business activities in Romania and talks about

our economic, social and environmental footprints. It reflects our approach to sustainable

development and the actions we have taken during the 2016 financial year (F16) to

advance responsible and trust-building practices in our business. We plan to continue

publishing such a report on an annual basis.

Report

scope

Global Reporting Initiative (GRI)

This report has been produced in accordance with the GRI Standards: Core option. GRI

Standards are the newest generation of sustainability reporting disclosures launched by

the Global Reporting Initiative (GRI) in October 2016. Disclosures are noted in the Content

Index available at the end of this report.

The United Nations Global Compact

As a subsidiary of SABMiller, Ursus Breweries adheres to the Ten Principles of the United

Nations Global Compact. By developing this report our goal is to qualify as a UN Global

Compact Advanced Level reporter.

Reference

Guidelines

The content of this document has been defined in line with the following principles as

defined in GRI 101: Foundation:

Principles for defining report content:

Stakeholder Inclusiveness Principle: We have identified and mapped our stakeholders,

and have explained how we responded to their reasonable expectations and interests. The

dialogue with our stakeholders is ongoing, and together with our external consultant who

is equipped with the requirements defined by in the AA1000 Stakeholder Engagement

Standard (AA1000SES), we have matched our sustainability reporting with our

stakeholders' reasonable expectations and interests.

Sustainability Context Principle: This report presents our performance within the local

sustainability context.

Materiality Principle: The topics and disclosures in this report reflect our significant

economic, environmental and social impacts, and those actions that substantially

influence our stakeholders' assessments and decisions.

Completeness Principle: The report covers those material topics and boundaries that

reflect our significant economic, environmental and social impacts, and that enable our

stakeholders to assess our performance in the reporting period.

GRI Reporting

Principles

102-48

102-51

102-50

102-52

About this report

The structure of this report follows our Prosper commitments and those subjects identified as material to our

stakeholders. It is divided into four major chapters ( eer, mployees, nvironment, and esponsibility) in order B E E R

to reflect our activity: we make . BEER

This report has been prepared in accordance with the GRI Standards: Core option. Our progress is also tracked

against the Sustainable Development Goals (SDGs).

SABMiller has been informed by AB InBev that it has submitted an updated package of commitments to the

European Commission (EC) in which it has offered to divest the entirety of SABMiller's businesses in Central and

Eastern Europe. This is in addition to the agreed sale of Peroni, Grolsch and Meantime and their related businesses

to Asahi. As part of AB InBev's updated package of commitments, the following businesses have been offered for

sale: Dreher Breweries (Hungary); Kompania Piwowarska (Poland); Plzenský Prazdroj and Pivovary Topvar

(Czech Republic and Slovakia); and Ursus Breweries (Romania). These businesses include a number of leading

brands in their markets and AB InBev expects to attract considerable interest from potential buyers.

The proposed divestments are subject to review and approval by the EC. Any sale would be conditional upon

completion of the AB InBev acquisition of SABMiller and will be carried out in the framework of the relevant social

processes and ongoing dialogue with the employee representatives' bodies. Any sale will complete after the

completion of AB InBev's proposed acquisition of SABMiller.

AB InBev's submission and updated package of commitments is part of its approach to proactively address

potential regulatory considerations.

Apart of the above, no other significant change in reporting scope, boundary or measurement

techniques have been made compared to our 2015/2016 sustainability report.

We have asked several stakeholders to review the Report and provide their independent view on our

performance and reporting. Their commentary is published in both the print and online formats of our

report.


This sustainability report covers the performance of Ursus Breweries SA business

operations across Romania in our owned production units (Timisoara, Cluj-Napoca,

Brasov and Buzau) and in our headquarters. The term 'production units' means breweries.

The information disclosed in the report has national coverage unless otherwise stated.

Where appropriate, we mentioned that data for some of our operations is unavailable.

We have outsourced several services (HR payroll, transportation, including the

commercial fleet, Procure to Pay – partially, Record to Report – partially, Order to cash -

partially). As we have no available data on their impacts, they are not covered by this

report.


All data in this report cover the 2015/2016 financial year (F16 = April 1, 2015 – March 31,

2016) unless otherwise stated. Relevant information covering the first half of the year 2016

(F17 H1) was also included.

Report

boundary

about this report

about this report

Reporting

period

This is Ursus Breweries SA fifth sustainability report, and the fourth issued in accordance

to GRI and United Nations Global Compact guidelines. As we see ourselves as pioneers in

our own industry, we have decided to break new grounds and adopt the use the GRI

Standards before they become mandatory.

The document reflects Ursus Breweries SA business activities in Romania and talks about

our economic, social and environmental footprints. It reflects our approach to sustainable

development and the actions we have taken during the 2016 financial year (F16) to

advance responsible and trust-building practices in our business. We plan to continue

publishing such a report on an annual basis.

Report

scope

Global Reporting Initiative (GRI)

This report has been produced in accordance with the GRI Standards: Core option. GRI

Standards are the newest generation of sustainability reporting disclosures launched by

the Global Reporting Initiative (GRI) in October 2016. Disclosures are noted in the Content

Index available at the end of this report.

The United Nations Global Compact

As a subsidiary of SABMiller, Ursus Breweries adheres to the Ten Principles of the United

Nations Global Compact. By developing this report our goal is to qualify as a UN Global

Compact Advanced Level reporter.

Reference

Guidelines

The content of this document has been defined in line with the following principles as

defined in GRI 101: Foundation:

Principles for defining report content:

Stakeholder Inclusiveness Principle: We have identified and mapped our stakeholders,

and have explained how we responded to their reasonable expectations and interests. The

dialogue with our stakeholders is ongoing, and together with our external consultant who

is equipped with the requirements defined by in the AA1000 Stakeholder Engagement

Standard (AA1000SES), we have matched our sustainability reporting with our

stakeholders' reasonable expectations and interests.

Sustainability Context Principle: This report presents our performance within the local

sustainability context.

Materiality Principle: The topics and disclosures in this report reflect our significant

economic, environmental and social impacts, and those actions that substantially

influence our stakeholders' assessments and decisions.

Completeness Principle: The report covers those material topics and boundaries that

reflect our significant economic, environmental and social impacts, and that enable our

stakeholders to assess our performance in the reporting period.

GRI Reporting

Principles

102-48

102-51

102-50

102-52


Appendices appendicesabout this report

Principles for defining report quality:

Accuracy Principle: We have strived to ensure that all information in this report is

accurate and reasonably detailed for stakeholders to assess our performance.

Balance Principle: The report reflects both positive and negative aspects of our

performance that would enable our stakeholders to reasonably assess our overall

performance.

Clarity Principle: We are trying to present all data and information in a manner that is

understandable and accessible to any of our stakeholders consulting the report.

Comparability Principle: We selected, compiled and reported information consistently.

We have tried, as much as we could, to present information in a way that enables

stakeholders to analyze changes in our performance over time, and that could support

analysis relative to other organizations.

Reliability Principle: We have gathered, recorded, compiled, analyzed and disclosed

information and processes used in the preparation of the report in a way that they are

subject to examination and that establishes the quality and materiality of the information.

Timeliness Principle: We report on an annual basis so that information is available in due

time for stakeholders to make informed decisions.

The report has been produced by Ursus Breweries SA management team supported by an

experienced sustainability consultant and a Certified Sustainability Assurance

Practitioner, Ms. Cristina Bălan.

As their inputs were instrumental in defining the content of this report, we would like to

thank all our stakeholders for their contribution, active participation and constructive

feedback. We would also like to praise every single employee who has contributed to the

sustainable development performance of Ursus Breweries.

Ÿ Report compelled by: Iris Golopenta and revised by Oana Mateescu and Robert Uzuna.

Credits

We look forward to receiving feedback from our stakeholders.

Email: [email protected]

Tel / Fax: 021.315.98.04.

Feedback

and

suggestions

In this section:

Ÿ GRI Content Index and

SDG Compass – cross

reference table

Ÿ Abbreviation list

mailto:[email protected]


Appendices appendicesabout this report

Principles for defining report quality:

Accuracy Principle: We have strived to ensure that all information in this report is

accurate and reasonably detailed for stakeholders to assess our performance.

Balance Principle: The report reflects both positive and negative aspects of our

performance that would enable our stakeholders to reasonably assess our overall

performance.

Clarity Principle: We are trying to present all data and information in a manner that is

understandable and accessible to any of our stakeholders consulting the report.

Comparability Principle: We selected, compiled and reported information consistently.

We have tried, as much as we could, to present information in a way that enables

stakeholders to analyze changes in our performance over time, and that could support

analysis relative to other organizations.

Reliability Principle: We have gathered, recorded, compiled, analyzed and disclosed

information and processes used in the preparation of the report in a way that they are

subject to examination and that establishes the quality and materiality of the information.

Timeliness Principle: We report on an annual basis so that information is available in due

time for stakeholders to make informed decisions.

The report has been produced by Ursus Breweries SA management team supported by an

experienced sustainability consultant and a Certified Sustainability Assurance

Practitioner, Ms. Cristina Bălan.

As their inputs were instrumental in defining the content of this report, we would like to

thank all our stakeholders for their contribution, active participation and constructive

feedback. We would also like to praise every single employee who has contributed to the

sustainable development performance of Ursus Breweries.

Ÿ Report compelled by: Iris Golopenta and revised by Oana Mateescu and Robert Uzuna.

Credits

We look forward to receiving feedback from our stakeholders.

Email: [email protected]

Tel / Fax: 021.315.98.04.

Feedback

and

suggestions

In this section:

Ÿ GRI Content Index and

SDG Compass – cross

reference table

Ÿ Abbreviation list

mailto:[email protected]


GRI Content Indexand SDG Compass



appendices

GRI

StandardsExplanation

Name of the organization

Activities, brands, products, and services

Location of headquarters

Location of operations

Ownership and legal form

Markets served

Scale of the organization

Information on employees and other workers

Supply chain

Significant changes to the organization and its supply chain

Precautionary Principle or approach

External initiatives

Membership of associations

Statement from senior decision-maker

Values, principles, standards, and norms of behavior

Governance structure

List of stakeholder groups

Collective bargaining agreements

Identifying and selecting stakeholders

GENERAL DISCLOSURES

SDG Compass Page in the report

102-1

102-2

102-3

102-4

102-5

102-6

102-7

102-8

102-9

102-10

102-11

102-14

102-16

102-18

102-40

102-41

102-42

GRI


Approach to stakeholder engagement

Key topics and concerns raised

Entities included in the consolidated financial statements

Defining report content and topic Boundaries

List of material topics

Restatements of information

Changes in reporting

Reporting period

Date of most recent report

Reporting cycle

Contact point for questions regarding the report

Claims of reporting in accordance with the GRI Standards

GRI content index

External assurance

GENERAL DISCLOSURES


102-43

102-44

102-45

102-46

102-47

102-48

102-49

102-50

102-51

102-52

102-53

102-54

102-55

102-56

8

11

8

8

8

8

3, 13

3, 13, 31, 32

9

6, 42

6, 12, 14, 20, 36

102-13

6

8

10

14

31

14

22

14

15-19

All financial statements and relevant data are available at http://bit.ly/1x3NLGD(Romanian Ministry of Finance - please type 199095 in the box and press Vizualizare).

14, 20, 21

20

42

20

42

Our 2014/2015 report is available at http://bit.ly/2m2qzYh

42

44

43

46

The present report has not been externally assured.

SDG 8

SDG 16

SDG 8

102-12 12, 22


GRI Content Indexand SDG Compass



appendices

GRI


Name of the organization

Activities, brands, products, and services

Location of headquarters

Location of operations

Ownership and legal form

Markets served

Scale of the organization

Information on employees and other workers

Supply chain

Significant changes to the organization and its supply chain

Precautionary Principle or approach

External initiatives

Membership of associations

Statement from senior decision-maker

Values, principles, standards, and norms of behavior

Governance structure

List of stakeholder groups

Collective bargaining agreements

Identifying and selecting stakeholders

GENERAL DISCLOSURES


102-1

102-2

102-3

102-4

102-5

102-6

102-7

102-8

102-9

102-10

102-11

102-14

102-16

102-18

102-40

102-41

102-42

GRI


Approach to stakeholder engagement

Key topics and concerns raised

Entities included in the consolidated financial statements

Defining report content and topic Boundaries

List of material topics

Restatements of information

Changes in reporting

Reporting period

Date of most recent report

Reporting cycle

Contact point for questions regarding the report

Claims of reporting in accordance with the GRI Standards

GRI content index

External assurance

GENERAL DISCLOSURES


102-43

102-44

102-45

102-46

102-47

102-48

102-49

102-50

102-51

102-52

102-53

102-54

102-55

102-56

8

11

8

8

8

8

3, 13

3, 13, 31, 32

9

6, 42

6, 12, 14, 20, 36

102-13

6

8

10

14

31

14

22

14

15-19

All financial statements and relevant data are available at http://bit.ly/1x3NLGD(Romanian Ministry of Finance - please type 199095 in the box and press Vizualizare).

14, 20, 21

20

42

20

42

Our 2014/2015 report is available at http://bit.ly/2m2qzYh

42

44

43

46

The present report has not been externally assured.

SDG 8

SDG 16

SDG 8

102-12 12, 22


GRI


201 - Economic Performance - Management approach

Direct economic value generated and distributed

Financial assistance received from government

Taxes

Amounts of contributions to various state budgets

Innovation

Amount of investments in technology and innovation

206 - Anti-competitive Behaviour

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

ECONOMIC


201-1

201-4

103-1, 103-2,103-3, 206-1

206-1

appendices appendices

GRI


302 - Energy

Energy consumption within the organization

303 - Water

Water withdrawal by source

305 - Emissions

Direct (Scope 1) GHG emissions

Reduction of GHG emissions

ENVIRONMENT


302-1

303-1

305-1

305-5

3, 13, 25

26SDG 5, SDG 7, SDG 8, SDG 9

103-1, 103-2, 103-3, 201

SDG 5, SDG 7, SDG 8

Here - Our company did not benefit from any financial assitance from the government.

103-1, 103-2, 103-3

25

25

103-1, 103-2,103-3

27

27SDG 8

39

39SDG 16

103-1, 103-2,103-3, 302

SDG 7, SDG 8,SDG 12, SDG 12

35


35

103-1, 103-2, 103-3, 303

SDG 6 35, 36

35

103-1, 103-2, 103-3, 305

SDG 3, SDG 12, SDG 13, SDG 14,SDG 15

34

SDG 3, SDG 12, SDG 15

34

SDG 15 34

306 - Effluents and Waste103-1, 103-2,103-3, 306

SDG 3, SDG 5, SDG 6, SDG 12, SDG 13, SDG 14

34

Water discharge by quality and destination 306-1

SDG 3, SDG 5, SDG 6, SDG 12, SDG 14

34

Waste by type and disposal method

306-2SDG 3, SDG 5,SDG 6, SDG 12

34, 35

307 - Environmental compliance

103-1, 103-2, 103-3, 307


35

Non-compliance with environmental laws and regulations

307-1SDG 3, SDG 12, SDG 15

36


GRI


201 - Economic Performance - Management approach

Direct economic value generated and distributed

Financial assistance received from government

Taxes

Amounts of contributions to various state budgets

Innovation

Amount of investments in technology and innovation

206 - Anti-competitive Behaviour

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

ECONOMIC


201-1

201-4

103-1, 103-2,103-3, 206-1

206-1


GRI


302 - Energy

Energy consumption within the organization

303 - Water

Water withdrawal by source

305 - Emissions

Direct (Scope 1) GHG emissions

Reduction of GHG emissions

ENVIRONMENT


302-1

303-1

305-1

305-5

3, 13, 25

26SDG 5, SDG 7, SDG 8, SDG 9

103-1, 103-2, 103-3, 201

SDG 5, SDG 7, SDG 8

Here - Our company did not benefit from any financial assitance from the government.

103-1, 103-2, 103-3

25

25

103-1, 103-2,103-3

27

27SDG 8

39

39SDG 16

103-1, 103-2,103-3, 302


35


35

103-1, 103-2, 103-3, 303

SDG 6 35, 36

35

103-1, 103-2, 103-3, 305

SDG 3, SDG 12, SDG 13, SDG 14,SDG 15

34


34

SDG 15 34

306 - Effluents and Waste103-1, 103-2,103-3, 306

SDG 3, SDG 5, SDG 6, SDG 12, SDG 13, SDG 14

34

Water discharge by quality and destination 306-1


34

Waste by type and disposal method

306-2SDG 3, SDG 5,SDG 6, SDG 12

34, 35

307 - Environmental compliance

103-1, 103-2, 103-3, 307


35

Non-compliance with environmental laws and regulations

307-1SDG 3, SDG 12, SDG 15

36

51 | Sustainable Development Report 201650 | Sustainable Development Report 2016


GRI


SOCIAL


401-1

401 - Employment

New employee hires and employee turnover

Parental leave401-3

403 - Occupational Health and Safety

Workers representation in formal joint management–worker health and safety committees

Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

403-1

403-2

103-1, 103-2, 103-3, 401

SDG 5, SDG 8 32

SDG 5, SDG 8

SDG 3

SDG 3, SDG 8

SDG 3, SDG 8

SDG 3, SDG 8

06, 31, 32

30, 31

30, 31

30, 31

31, 32

SDG 8 32

103-1, 103-2, 103-3, 403

405 - Diversity and Equal Opportunities

Diversity of governance bodies and employees 405-1

406 - Non-discrimination

Incidents of discrimination and corrective actions taken406-1

103-1, 103-2, 103-3, 405

SDG 5, SDG 8

The percentage of women in our Board is zero. In terms of categories of employees, details are provided at page 31.

SDG 5 32103-1, 103-2, 103-3, 406


No incident of discrimination was registered during the reporting cycle.

GRI


SOCIAL


415 - Public Policy

Political contributions

416 - Customer Health and Safety

Incidents of non-compliance concerning the health and safety impacts of products and services

415-1

416-2

103-1, 103-2, 103-3, 415

SDG 16 38, 39

SDG 16 39

103-1, 103-2, 103-3, 416

SDG 16

SDG 16

38

38

51 | Sustainable Development Report 201650 | Sustainable Development Report 2016


GRI


SOCIAL


401-1

401 - Employment

New employee hires and employee turnover

Parental leave401-3

403 - Occupational Health and Safety

Workers representation in formal joint management–worker health and safety committees

Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

403-1

403-2

103-1, 103-2, 103-3, 401

SDG 5, SDG 8 32

SDG 5, SDG 8

SDG 3

SDG 3, SDG 8

SDG 3, SDG 8

SDG 3, SDG 8

06, 31, 32

30, 31

30, 31

30, 31

31, 32

SDG 8 32

103-1, 103-2, 103-3, 403

405 - Diversity and Equal Opportunities

Diversity of governance bodies and employees 405-1

406 - Non-discrimination

Incidents of discrimination and corrective actions taken406-1

103-1, 103-2, 103-3, 405

SDG 5, SDG 8

The percentage of women in our Board is zero. In terms of categories of employees, details are provided at page 31.

SDG 5 32103-1, 103-2, 103-3, 406


No incident of discrimination was registered during the reporting cycle.

GRI


SOCIAL


415 - Public Policy

Political contributions

416 - Customer Health and Safety

Incidents of non-compliance concerning the health and safety impacts of products and services

415-1

416-2

103-1, 103-2, 103-3, 415

SDG 16 38, 39

SDG 16 39

103-1, 103-2, 103-3, 416

SDG 16

SDG 16

38

38


appendicesAbbreviation list

ANTREC

EC

F13 … F16

FIC

GHG

GRI

hl

HR

ISO

KPI

kWh

LPG

MJ

NGO

RON

SAM

SDG

WHO

Romanian Association for Rural, Ecological and Cultural Tourism

European Commission

Financial years (1 April – 31 March)

Foreign Investors' Council

Greenhouse gas

Global Reporting Initiative

Hectoliter (100 liters)

Human resources

International Organization for Standardization

Key performance indicator

Kilowatt hour

Liquefied petroleum gas

Megajoule

Non-governmental organization

Romanian Leu (local currency)

Sustainability Assessment Matrix

Sustainable Development Goal

World Health Organization


appendicesAbbreviation list

ANTREC

EC

F13 … F16

FIC

GHG

GRI

hl

HR

ISO

KPI

kWh

LPG

MJ

NGO

RON

SAM

SDG

WHO

Romanian Association for Rural, Ecological and Cultural Tourism

European Commission

Financial years (1 April – 31 March)

Foreign Investors' Council

Greenhouse gas

Global Reporting Initiative

Hectoliter (100 liters)

Human resources

International Organization for Standardization

Key performance indicator

Kilowatt hour

Liquefied petroleum gas

Megajoule

Non-governmental organization

Romanian Leu (local currency)

Sustainability Assessment Matrix

Sustainable Development Goal

World Health Organization

The 2015/2016 Ursus Breweries SA sustainable development report

is available in both print and online formats.

For the electronic version, please visit our website

http://ursus-breweries.ro/responsabilitate/

The 2015/2016 Ursus Breweries SA sustainable development report

is available in both print and online formats.

For the electronic version, please visit our website

http://ursus-breweries.ro/responsabilitate/

Ursus Breweries2015/2016 Sustainability Report

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