Lion • Sustainability performance report 2022 Acknowledgement of Country

Australian Aboriginal Flag Torres Strait Islands Flag

We acknowledge the Traditional Custodians of the lands across Australia. We honour the long history and celebrate the strength and resilience of Aboriginal and Torres Strait Islander peoples and communities past and present. This proud heritage inspires our ambition to foster a shared sense of belonging for all Australians.

We recognise and respect Aboriginal and Torres Strait Islander peoples' historical and ongoing connection to land and waters and pay our respect to Elders past and present.

2022 Sustainability performance report

About this report

We are proud to present our Sustainability Performance Report for 2022, which marks the first complete calendar year using our redefined ESG framework. Our approach is governed by the belief that Lion can be a force for good in the world, delivering enduring environmental leadership, long-term positive social impact, and best practice governance. And to hold ourselves to account, we've set evidence-based goals to 2025 and beyond.

Report parameters

Unless otherwise stated, performance data is relevant to our Australia and New Zealand operations for calendar year 2022. This report is produced with reference to the GRI Standards 2021 and applicable Topic Standards 2016-2020. Lion Pty Ltd (Lion) engaged KPMG to perform limited assurance in relation to these selected material sustainability metrics:

  • Zero carbon
  • Circular Economy
  • Water Stewardship
  • Safety

Refer to KPMG's assurance statement for detail. The GRI Index provides the list of disclosures we have reported against. Our ten material topics remain consistent with those outlined on page 2 of the Lion Sustainability Report 2021, based on a materiality assessment conducted earlier that year. The 2022 raw sustainability data is also available.

The Lion Sustainability Strategy supports the following UN Sustainable Development Goals (SDGs):

Environmental highlights

Our ambition is to be a Force for Good by: Demonstrating brave and enduring environmental leadership

We collaborate across our supply chain to support a healthy planet by minimising our water use, reducing our carbon emissions and promoting circular economy solutions for our packaging.

  • ON TRACK
    30% reduction in Scope 1 & 2 carbon emissions1
    STRATEGIC OBJECTIVE Zero carbon
  • ON TRACK
    100%renewable electricity procured2
    STRATEGIC OBJECTIVE Zero carbon
  • ON TRACK
    64%average recycled content in our packaging, exceeding APCO National Packaging Target > 50%
    STRATEGIC OBJECTIVE Circular economy
  • OFF TRACK
    3.62L/Llitres of water consumed per litre of beer produced3
    STRATEGIC OBJECTIVE Water stewardship

Social highlights

Our ambition is to be a Force for Good by: Creating long-term positive social impact

Guided by our core purpose of championing sociability and helping people to live well, we engage and build relationships with our people, customers, consumers, suppliers and community partners to make a positive difference where we can.

  • ON TRACK
    $2.2mdiverse supplier spend1
    STRATEGIC OBJECTIVE Diverse and ethical supply chain
  • OFF TRACK
    28.7%of teams have 40% men & 40% women representation2
    STRATEGIC OBJECTIVE Inclusive and diverse workplaces
  • ON TRACK
    68%of high priority suppliers completed Sedex self assessment3
    STRATEGIC OBJECTIVE Diverse and ethical supply chain
  • ON TRACK
    2,498people reached through our strategic partnerships building mental resilience in our communities
    STRATEGIC OBJECTIVE Mental health in the community
  • ON TRACK
    <1%gender pay gap4
    STRATEGIC OBJECTIVE Inclusive and diverse workplaces
  • ON TRACK
    $5.2m invested in our communities
    STRATEGIC OBJECTIVE Community engagement
  • ON TRACK
    4,782volunteering hours by Lion employees
    STRATEGIC OBJECTIVE Community engagement
  • ON TRACK
    42,223 Alcohol&Me online modules completed
    STRATEGIC OBJECTIVE Responsible consumption

Governance highlights

Our ambition is to be a Force for Good by: Strengthening and safeguarding our governance

Our governance practices help people across the business make choices that create a positive work environment, earn the trust of our customers and partners, build a business that is sustainable and profitable and contributes to a better world.

  •  
    1non-compliance upheld by Advertising Standards Authority
    STRATEGIC OBJECTIVE Best practice and reputation
  • OFF TRACK
    2.13Lost Time Injury Frequency Rate (LTIFR)
    STRATEGIC OBJECTIVE Everyone safe
    every day
  • OFF TRACK
    4.27Total Recordable Injury Frequency Rate (TRIFR)
    STRATEGIC OBJECTIVE Everyone safe
    every day
  • ON TRACK
    97%staff completed competition law training
    STRATEGIC OBJECTIVE Best practice and reputation
  • ON TRACK
    98% staff completed anti-bribery and corruption training
    STRATEGIC OBJECTIVE Best practice and reputation

A message from our Sustainability Director

We remain committed to producing immediate and enduring benefits for society, our people, and the environment.”

I am delighted to present Lion's 2022 Sustainability Performance Report showcasing our progress against established targets over the course of 2022. It reflects my personal ambition - shared by colleagues throughout the business - to make Lion a force for good for people and planet. We remain committed to producing immediate and enduring benefits for society, our people, and the environment.

Our sustainability targets

Having set ambitious targets that provide long-term direction for our actions, we are making good progress. Key 2022 highlights include being recognised as joint winner of the Net Zero Action Award at the 33rd National Banksia Sustainability Awards, progressing toward net zero by becoming the first large scale brewer in Australia to procure 100% renewable electricity for all Australian operations, continuing to promote the responsible consumption of alcohol through our Alcohol&Me program with over 42,200 modules completed and launching our Innovate Reconciliation Action Plan (RAP).

Pursuing net zero

Lion is dedicated to achieving a net-zero value chain by 2050, and to reducing carbon emissions by 55 percent by 2030 from a 2019 baseline.

In December Lion signed a landmark 100% renewable power purchase agreement (PPA) with the lightsource bp solar farm in Woolooga, near Gympie Qld. Combined with our 100% renewable PPA in NSW and the procurement of additional renewable energy certificates from Woolooga for relatively modest electricity consumption in other states, Lion is now the first large scale brewer in Australia to procure 100% renewable electricity for all Australian operations. This achieves our strategic carbon reduction target two years ahead of schedule and will eliminate around 138,000 tonnes of carbon emissions over the 9.5-year agreement, the equivalent of taking 45,000 cars off the road.

In New Zealand, Lion has reduced its carbon emissions by 10 percent from its baseline year of 2019 as part of its Toitū net carbonzero commitment.

As a founding member of the Australian Climate Leaders Coalition, we led a proof-of-concept case study on carbon neutral XXXX Gold, working in collaboration with key suppliers and customers to accurately measure and identify scope 3 emission reduction opportunities from our value chain. The Scope 3 Roadmap Report was the first of its type in the world and presented at COP27 in November 2022.

Serving our people and communities

Recognising the value of a genuinely diverse and inclusive culture, Lion became the first major brewer to achieve certification as a Family Friendly Workplace.

We were also proud to continue our strategic partnerships with Graeme Dingle Foundation supporting New Zealand's youth to achieve their potential, and with Gotcha 4 Life delivering mental fitness programs to one in every two Lion employees and our local communities. Lion employees also completed over 4,700 hours in volunteering.

Supporting our customers is another way we enhance prosperity in our communities. The Lion Marketplace app, released in August 2022, showcases our focus on being the easiest supplier for publicans, hoteliers and other customers to do business with, as they recover from the challenges presented by the pandemic, labour shortages, and supply chain disruptions.

First Nations reconciliation and empowerment

Lion is committed to truth telling, recognising past injustices experienced by First Nations peoples, and a reconciled future that includes historical acceptance of our shared history and a nation that embraces diversity and equality between Aboriginal and Torres Strait Islander peoples and other Australians. In launching our Innovate RAP we welcome feedback on our approach and will continue to listen to - and learn from - First Australians as we take this next step on our reconciliation journey together.

Justin Merrell
Group Sustainability Director

Our business

  • Lion Australia
  • Lion New Zealand
  • Lion USA
LAUNCESTON James Boag’s BREWERY PERTH Little Creatures MICRO BREWERY Little Creatures CRAFT BREWERY Fremantle GEELONG Furphy Little Creatures White Rabbit CRAFT BREWERY MELBOURNE Fixation Brewing Co CRAFT BREWERY Two Birds Brewing CRAFT BREWERY KOSCIUSZKO Kosciuszko Brewery MICRO BREWERY WESTERN SYDNEY Tooheys BREWERY Lidcombe SYDNEY CBD MAJOR OFFICE Malt Shovel CRAFT BREWERY Camperdown Y ork St BYRON BAY Stone & Wood CRAFT BREWERY Byron Bay Brewing CRAFT BREWERY MURWILLUMBAH Stone & Wood CRAFT BREWERY BRISBANE Stone & Wood CRAFT BREWERY MILTON XXXX BREWERY EUMUNDI Eumundi Brewery CRAFT BREWERY
DUNEDIN CRAFT BREWERY Emerson’s BREWERY Speight’s BLENHEIM WINERY Wither Hills Marlborough WELLINGTON Havana Coffee Works COFFEE ROASTERY UPPER HUTT Panhead CRAFT BREWERY AUCKLAND East Tamaki Havana Coffee Works The Pride Little Creatures Fanshawe St CONTRACT BOTTLING FACILITY COFFEE ROASTERY BREWERY MAJOR OFFICE HOSPITALITY VENUE Hobso n ville P oint
NORTH CAROLINA New Belgium CRAFT BREWERY Asheville MICHIGAN Bell’s Brewery CRAFT BREWERY CRAFT BREWERY Upper Hand Brewery CRAFT BREWERY Bell’s Brewery Escanaba Comstock K alama z oo COLORADO Denver Pilot CRAFT BREWERY New Belgium CRAFT BREWERY F ort Collins De n v er CALIFORNIA MacRostie Markham Textbook New Belgium WINERY WINERY WINERY CRAFT BREWERY San F r ancisco OREGON Argyle WINERY Dundee Oregon
  • $2.042bNet Sales Revenue (NSR) AU & NZ
  • 4,391Employees globallly
  • 37 Sites
  • $5.2mCommunity investment