2022 Sustainability Report

This Sustainability Report 2022, aims to complement our 2022 EABL Annual Integrated Report by providing a detailed overview of our performance against Society 2030: Spirit of Progress. It is prepared in accordance with the GRI Standards: Comprehensive Option.

2022 SUSTAINABILITY REPORT

Group Boards Chairman's Statement

Martin Oduor Otieno

It gives me mmense pleasure to share our Annual Sustainability Report for 2021-2022 and to celebrate our achievements and performance improvements this past year. We have earnestly continued to accelerate our sustainability efforts in 2021, challenging ourselves to ensure that sustainability is central to the mission and drive of every single EABL employee, department and market where we operate.

We firmly believe that a focus on sustainability is the right thing to do, integral to our culture of “bold, progressive, connected” and a central enabler of our continued success. As a business, our ten-year plan on sustainability - Society 2030: Spirit of Progress, takes into account the influence and impact of our decisions and actions on our stakeholders and the environment.

As we share our second Annual Sustainability Report, we are excited to continue a legacy of transparency, accountability and commitment to progress against our ambitious social, economic and environmental goals.

Message from group MD and CEO

Jane Karuku

As we mark our centenary anniversary, I want to thank the Board, my Leadership Teams at KBL, SBL and UBL, and all our staff across EABL for having closely embraced our Sustainability Strategy, Society 2030: Spirit of Progress. recently launched Annual Report, that was unveiled to our shareholders and other stakeholders on 15th September, 2022. During the launch, I was pleased to note the keen interest in sustainable production, which remains the anchor of our business both from a Diageo Global and EABL Group point of view.

Our business depends on natural resources, from farming and production of our ingredients to the manufacturing and distribution of each and every one of our products. However, every other day, another research finding, news story or environmental-related disaster comes with more evidence that our planet is in a crisis. In spite of these seemingly insurmountable challenges, EABL is taking the lead in developing solutions. We are purposefully driving a shared prosperity agenda to guarantee value for our employees, consumers and business partners including our distributors and retailers.

Message Former KBL Managing Director

John Musungu

Our staff have continued to be our anchor in bringing our sustainability initiatives to life. Various departments, and products, have ensured that sustainability is engrained as part of our business activities.

In the last financial year, we made significant strides against our three pillars namely: Promote Positive Drinking, Champion Inclusion and Diversity and Pioneer Grain to Glass Sustainability.

Message From the SBL Managing Director

Mark Ocitti

" 21st century choice: Look after our planet and it will look after us, or don’t and face the consequences - Phil Harding"

I purposely choose to start with British archeologist Phil Harding’s quote as I give an overview of SBL’s Sustainability initiatives in F22. The quote speaks not only to the responsibility that we have as individuals and corporations to look after our planet, but also to the hard fact that there will be repercussions if we don’t take up the mantle

At SBL, in F22, we continued to prioritize sustainability as a key foundation of our business. We looked at an end-to-end approach to production and distribution of our products against the backdrop of our strong Sustainability Strategy - Society 2030: Spirit of Progress. We looked at our targets for the three pillars: Promote Positive Drinking, Champion Inclusion and Diversity, and Pioneer Grain to Glass Sustainability as a compass towards contributing to a sustainable business in Tanzania.

Message From the UBL Managing Director

Andrew Kilonzo

Uganda Breweries Limited has a deeply rooted heritage dating back to 1959 when it became part of EABL to allow for a regional presence as a pioneer in the brewing industry in East Africa. Having marked over 60 years of our presence in Uganda, we pride ourselves of our deep understanding of the local business operating environment.

In this report, which primarily addresses our non-financial performance, I would like to focus on our physical business environment which spans around the natural resources MESSAGE FROM THE UBL MANAGING DIRECTOR Having marked over 60 years of our presence in Uganda, we pride ourselves of our deep understanding of the local business operating environment. 17 that we all rely upon for our existence. More than ever before, we at UBL, have heightened our focus on end-to-end sustainable production and distribution of our products.

Message From Group Corporate Relationship Director

Eric Kiniti

"There is no business on a dead planet. David Browner, US Conservationist."

As we report on our non-financial performance for F22 through our Sustainability Strategy, I can’t help but think of some of the startling occurrences that we are seeing in the world today, mainly as a result of climate change. From floods to prolonged droughts, many parts of the world have become affected and are grappling to reverse or even deal with these effects. This brings us to the realization that we must all play a part in ensuring that we are collectively working towards having sustainable operations in our organizations.

In driving Inclusion and Diversity, where we had target of ensuring that 50% of all our community programmes beneficiaries are women, we achieved a 63% success rate with our business in Uganda, UBL, leading at a 77% success rate. Collective responsibility, collaboration and ownership are the highlight of this year’s nonfinancial performance report for EABL. More than ever, we joined hands across the various departments to drive our Sustainability Strategy – Society 2030: Spirit of Progress

Our Strategy

Society 2030: Spirit of Progress is Diageo's 10 year action plan to help create a more inclusive and sustainable world. Building on the legacy of our founders to create a positive impact in our company, with our communities and for society. It is how we will continue to celebrate life, every day, everywhere.

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Report Structure

For EABL, the reporting process is quite reflective in nature. We use this opportunity to gauge our progress, identify our challenges and plan for the next financial year. We organize a series of dialogues with our advisors (particularly from academia) to ensure that we are aware, and are capturing emerging trends in our non-financial modelling and forecasting.

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Progress Against Society

Increasingly, our work around governance, environment and societal issues is equally as important as our financial performance. Rightfully so, our stakeholders are highly perceptive as well as demanding in terms of our disclosures around these issues. In 2021 we published our inaugural Sustainability Report, following our year-long materiality assessment process.

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Our Stakeholders Engagement

We define our stakeholders as all those who affect, are affected or could be affected by our business. We engage internal and external stakeholders, ranging from employees, investors and commercial partners to governments, NGOs, local communities and consumers. A full list is included in the Stakeholder Engagement section of our Annual Report

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Responding to global challenges – Climate Change and COVID 19

2020 and the most part of 2021 was undoubtedly dominated by the COVID-19 pandemic, which has resulted in the death of more than 6 million people worldwide thus far. 2021 was also marked by the increasingly evident effects of climate change, including record-breaking flooding, and more extreme temperatures. A striking parallel between the climate crisis and COVID-19 is that they both resulted in loss of life that could have been prevented through concerted global efforts.

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