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2010Tsingtao Brewery Co., Ltd.

Sustainability Development Report

Report Scope

This is the third annual sustainability

report published by Tsingtao

Brewery Co., Ltd. The data and

information within the report covers

Tsingtao Brewery Co., Ltd., including

its 53 affiliated breweries as well as

the company’s 2 malthouses. All the

cases of sustainable development

mentioned in the report occurred

from January 1st, 2010 to December

31st, 2010. Based on the continuity

and contrast of the report, some of

the data and information provided

are not only quoted from the year of

2010.

Editorial Policy

This report is drafted in compliance

with the Global Reporting Initiative

(GRI)’s sustainbility Reporting

Guide l ines 3 .0 vers ion (a l so

referred to as the G3), Corporate

Environmental Reporting Guidelines

of Shandong Province, and the

additional guidelines for food and

beverage. Also the report is prepared

in accordance with SSE Social

Responsibility and Disclosure of

EP Information Guidelines by the

Shanghai Stock Exchange and the

relevant disclosure requirements on

social responsibilities by the State-

owned Assets Supervision and

Administration Commission of the

State Council.

Selection of Content

In terms of content selection,

Tsingtao Brewery closely followed

the importance, completeness

a n d c o m p a r a b i l i t y o f t h e

guidelines of the G3. The report

c o n c e n t r a t e s o n e c o n o m i c

development, social engagement

and environmental protection, as

well as Tsingtao Brewery’s expansion

in sustainability, including product

safety, environmental conservation,

employee benefits, community

relationships.The collection of the

data and information in the report

complies with the existing working

process.

Explanation for Short Titles

In the report Tsingtao Brewery Co.,

Ltd. refers to “Tsingtao Brewery” or

“Company” or “we”. The copyright

of this report is owned by Tsingtao

Brewery Co., Ltd.

Publishing Methods

The report will be published in print and online. The online version is available

on the company website (URL: www.tsingtao.com.cn). The report will be both

in Chinese and English. When understanding discrepancies happen, the Chinese

version shall prevail.

About this Report

Sustainable Development Indices of Tsingtao Brewery

Message from the Chairman

Messages from the President

About Us

Good Quality

——Happy Drinking

Caring for Nature ——Creating Happiness

Contributing Love

——Contributing Happiness

Harmony Among All

——Sharing Happiness

Our Voice

Honors and Awards in 2010

Third-party Evaluations

Feedback of the Report

Your Feedback

Appendix: GRI Guidelines Index

02

04

05

06

31

33

34

36

37

38

10

14

20

26

Table of Contents

Sustainable Development Indices of Tsingtao Brewery

157.81 177.61196.14

Sales RevenueRMB 100 million

538 591 635

Sales Volume 10,000 kiloliters

2008 2009 2010 2008 2009 2010

Economic Performance2008

7.98

32.98

0.6097

2009

12.50

41.61

0.9503

2010

15.20

43.42

1.125

RMB 100 million

Tax RMB 100 million

EPS RMB

Net Profit Attributable to

Shareholders of the Listed Company

Sustainable development is a long-term goal of Tsingtao Brewery. Readers can understand

the efforts we have made, our achievements and our shortcomings in 2010 through the

following indices, and provide their suggestions, encouragement and support.

2 Tsingtao Brewery Sustainability Development Report

Basic information Good Quality—Happy Drinking Caring for Nature - Creating Happiness

680.27 400.15 200.08 11.26 7.47 5.32

20082008 20092009 20102010

Number of work injuries

Number of work injuries per 100 employees

2008 2009 2010

Work Days Lost (day) Per hundred days

Social Responsibility

Environment2008

75.99

14.33

4.15

0.45

1.07

2009

70.62

17.83

3.90

0.37

1.3

2010

69.46

20.52

3.66

0.34

1.58

Electricity Consumption kilowatt/kiloliter

CO2 recycled kilogram/kiloliter

Unit of a product m3/kiloliter

Unit of a product kilogram/kiloliter

Value of environmental utilization RMB 100 million

5.93 5.44 5.20

Water Use m3/kiloliter

69.25 59.70 56.17

Coal Consumption kilogram/kiloliter

2008 2009 2010 2008 2009 2010

3www.tsingtao.com.cn

Contributing Love – Contributing Happiness Harmony Among All – Sharing Happiness Appendix

http://www.tsingtao.com.cn

Message from the Chairman

March 2011

Chairman of Tsingtao Brewery Co., Ltd.

Jin Zhiguo

Tsingtao Brewery believes in

one simple thing. That the

people in which you make

successful will bring success

back to you. That the people

in which you bring wealth

will bring wealth back to you.

That the people you respect

will respect you and that the

people you take responsibility

for will also be responsible to

you…

As the basic unit of the business community, an enterprise’s sustainable development capability

represents the commercial civilization of an era. But what does corporate social responsibility really

mean in the post-crisis era? With the competition increasing worldwide, how can Chinese enterprises

achieve sustainable development?

By learning from our ongoing business practices, we discover that the immediate concern for an

enterprises’ sustainable development is finding a sustainable development business philosophy that

will support business operations and discovering the growth methods and development models that

will suit their individual needs. So what is the business philosophy for Chinese enterprises?

Tsingtao Brewery believes in one simple thing. That the people in which you make successful will

bring success back to you. That the people in which you bring wealth will bring wealth back to you.

That the people you respect will respect you and that the people you take responsibility for will also

be responsible to you…

We are trying to explore a “3-dimension business philosophy” which we hope to later bring from

theory to practice. In fact the 3-dimension business philosophy is in harmony with the enterprise and

consists of 3 dimensions which include the height of philosophy, the width of responsibilities and the

strength of the capabilities. The above mentioned 3-dimension business philosophy, which highlights

the core competitiveness of enterprises in creating a new business civilization, goes through the whole

process of enterprise development and in each stage the concept, the responsibility and the ability are

different.

The survival of an enterprise is embodied in personal values. Entrepreneurs will benefit if they respect

themselves. The development of an enterprise is embodied by team management skills oriented that

will reflect team values and the entrepreneur will benefit himself and others from the perspective

of mutual respect; in the mature stage the enterprise is oriented by supply chain management that

will reflect organizational values and the entrepreneur will benefit others and then himself from

the perspective of common respect; however, in the successful stage the enterprise is oriented by

system management that will reflect social values and the entrepreneur will benefit the public and

communities.

Due to the experience gained from more than one hundred years of development, Tsingtao

Brewery is moving from a mature stage to a stage of success. Our ideas need to shift from focusing

on organizational value to social value. Our responsibilities need to change from the supply chain

to the entire society. We should possess system management capabilities instead of supply chain

management capabilities. The business practices of Tsingtao Brewery currently set at improving

morally, expanding responsibilities and strengthening our capacity.

We are committed to achieving glory and respect for the Chinese economy during this transition

period. To some extent, the “Tsingtao” brand represents Chinese brands, and has become an example

of hard work, and the epitome of efficiency.

We are committed to our stakeholders with the responsibility to bringing them glory and helping

them realize their dreams. From these new business methods, Tsingtao Brewery has been working

“with our passion brewing beer for consumers’ preferences and creating joy for them”.



Message from the President

During 2010, the root causes of the economic crisis were not eliminated and the crisis itself was

still ongoing with many looming uncertainties. Under these circumstances, the adjustment of the

global economic growth model shall inevitably bring changes to the local economic structure. As for

business operations, we have always believed the duties of Tsingtao Brewery are to develop sustainably

and to be a healthy and sensible company.

As the industry leader, Tsingtao brewery has always taken the pursuit of excellent product quality as

its foundation. In order to ensure consistent product quality, we proposed the “Six Uniform” concept

and standardized the production process in every link to provide consumers with safe and healthy

products with high quality in 2010.

We have always attached importance to contributing to social capital and natural capital for the

enterprise’s growth. We also rever nature and cherish the environment. Tsingtao Brewery invested

more than RMB 50 million in 2010 to build and modify environmental projects in order to meet

various environmental requirements, such as sewage treatment, boiler desulphurization dust control,

odor processing, noise control and solid waste treatment, etc. We upgraded “carbon management” to

the strategic level, worked out our own “low-carbon operation model”, reduced the carbon emissions

of the value chain and implemented closed-loop carbon management method.

Due to the frequent natural disasters in 2010, we felt it was our duty to participate in emergency

rescue and disaster relief, and to comfort people in disaster areas with our love and enthusiasm. At

the same time, we promoted the youth’s sport development in poverty-stricken areas by using our

“Tsingtao Brewery-QSL Youth Sports Development Foundation” platform. In 2010 Tsingtao Brewery

invested a total number of more than RMB 10 million to charitable projects.

We advocate the supply chain management concept of “win-win cooperation, making profit with

moral righteousness”. We believe that the relations between Tsingtao Brewery and its partners

are not only in terms of business cooperation but also symbiotic ties established by our mutual

responsibilities. We actively support the development of our suppliers and distributors and provide

opportunities to improve quality, cost, management method and service of both suppliers and

retailers.

Our beer is crafted through our devotion to nature, the cooperation and support of the stakeholders

and the sophisticated hard work of the nearly 40,000 employees at Tsingtao. We are grateful to the

joint efforts of all staff and make each employee realize their value and capability in Tsingtao Brewery.

We will continue to raise the employees’ salaries, pay great attention to employees’ health and create a

happy and harmonious working environment and atmosphere for them.

In 2010 Tsingtao Brewery further deepened and achieved mutual benefit, win-win and common

prosperity with the stakeholders in accordance with the concept that responsibilities go first. These

responsibilities include sticking to the basis of good quality, actively expanding the market, enhancing

the brand, enlarging the responsibility, promoting the excellent performance of Tsingtao Brewery

in the capital market with materiality benefits and maximized the value of business and social

customers.

Executive Director and President of Tsingtao Brewery

Sun Mingbo

Ts i n g t a o B r e w e r y t r i e s

its best to fulfill its social

re sp ons ib i l i t i e s throug h

cont inuous ly im prov ing

its management methods

to mainta in harmonious

e m p l o y e e r e l a t i o n s a n d

a d d r e s s c o n c e r n s o f

consumers’ satisfaction. Good

shareholder returns, win-

win cooperation, sustainable

natural environment and

warm community atmosphere

demonstrate the validity of

the company’s sustainable

development strategy.

March 2011




General

Tsingtao Brewery Co., Ltd. (hereinafter referred to as “Tsingtao Brewery”) was formerly known

as the Germanic Brewery Tsingtao Company which was established by German and British

businessmen in August 1903. Tsingtao Brewery is the oldest brewery in China and was also the

official sponsor of the 2008 Beijing Olympics. The current brand value is 42.62 billion, making

Tsingtao Brewery the top Chinese brewery among the world’s top 500 brands.

In 1993, Tsingtao Brewery went public on the Hong Kong Stock Exchange and the Shanghai Stock

Exchange respectively, making it the first mainland Chinese company listed simultaneously on

two stock markets. Due to numerous strategic mergers and acquisitions, purchases of insolvent

companies, reorganization, and joint-venture partnerships the company now has 53 beer

production sites and 2 malthouses in 19 provinces, municipalities and autonomous regions.

Tsingtao Brewery’s products are sold in over 70 countries and regions. According to the Barth

Report, the authoritative report on global industries, Tsingtao Brewery was ranked the world’s

sixth largest brewery in terms of output. Moreover, Tsingtao Brewery has won almost all the gold

medals in beer quality contests in China since the founding of new China in 1949. It has also won

gold medals many times in contests held around the world. In 2010, Tsingtao Brewery won the “Best

Employers in China Enterprises”, “China’s first Green Gold’ award, was recognized as one of “2010

China’s Most Admired Companies” by Fortune, once again was awarded the “Best Corporate

Citizenship” prize, “China Green Company Article Strong” and “Best Leadership Development

Companies in China” as well as other honors.

In 2010 the company had made outstanding achievements with annual sales revenue and net

profits hitting record highs and had remained the most profitable beer company in the industry.

About Us

Company Vision

Become an international company with an influential brand.

Company Mission

Bring joy to life by passionately brewing the beer which is loved among beer drinkers from all over the world.

Corporate Objective

Be people oriented. Work together and benefit the society



Brand Strategy

Tsingtao Brewery utilizes the“1+3”brand strategy to meet consumer demands on different levels.

Successful sales in more than

70countries and regions.

53Affiliated Breweries

In 2010 the company completed the acquisition of Golden Harvest Beer in Taiyuan and Silver Wheat Beer in Shandong. During the same year, Tsingtao also built a new factory in Shijiazhuang and started the relocation expansion projects in Fuzhou, Zhuhai, Tengzhou and Xiamen.

The top Chinese beer company with a brand value of

42.62billion.




Corporate Governance

The current corporate governance structure of the company consists of shareholders, the Board of Directors, the Board of Supervisors, and Senior Management whose duties include clearly defined roles and responsibilities, and maintaining an effective balance of power and independent operation. Also the company is one of the examples of good cor por ate governance on the Shanghai Stock Exchange.

Strictly complying to set laws and regulations.

Maintaining a sound management system that guarantees the sustainable development of the company.

The following rules ensure the company’s sustainable development:1.Rules of Procedures of The Shareholder Meetings; 2.Rules of Procedures of The Board of Director; 3.Rules of Procedures of The Board of Supervisors; 4.Decision-making Process on Major Issues; 5.Conference System of the

President’s Office

way a company can demonstrate its corporate social responsibilities. The company shall ensure that any disclosed information is true.

Decision-Making Supervision of the Strategic Matters

Strategy Management

Decisio

n-M

aking

Sup

ervision

o

f the O

peratin

g M

atters

Operating Units

Marketing Center

Logistics Center

Manufactur-ing Center

Board of Supervisors

External Supervisors

Internal Supervisors

Corporate Governance Structure

Board of Directors

Auditing and Financial

Committee

Strategy and Investment Committee

Corporate Governance and Compensation

Committee

Independent Directors

Non-executive Directors

Executive Directors

Tsingtao Brewery won the “Special Award for Corporate Governance- Award to the Board of Directors 2009”by the Shanghai Stock Exchange.



Risk Management

We believe that an enterprise needs regular check-ups to ensure its healthy development just like human

beings do. The internal risk management team at Tsingtao Brewery practices “self health care”, which is more

important than medical treatments. The company carries out a comprehensive assessment and identifies risks

through collecting, screening, identifying, analyzing and evaluating the company’s interior and exterior risk

information to form a risk events information database. Through risk assessment, internal control assessment

and internal auditing, etc., the company is able to identify, analyze and evaluate the risks in business operations

and develops measures to promote reform and consolidation. This sound internal control mechanism ensures

legal compliance in business operations and asset securities.

Business Ethics and Compliance

Tsingtao Brewery complies with all laws and regulations, company policies and procedures as well as common

moral principles and values. We strengthen corporate governance so that all employees and partners in our

value chain adhere to business ethics and compliance standards. When managing our business partners

as well as the quality of products and services of our upstream and downstream partners, the company

implements the common compliance and business ethics in the beer industry value chain through establishing

a comprehensive digital evaluation system of our partners to select and optimize them.

Fighting against corruption and building a clean company are key factors in managing employees’ business

ethics. In 2010 the company continued to implement education, system building and supervision, gradually

improving the internal accountability system and the system of “Punishing and Preventing Corruption”,

establishing a sound monitoring network and complaints mechanism, as well as strengthening power controls

and supervision.

Our PartnersStakeholders Our Responsibilities and Undertakings

Consumers Provide safe products and services with high quality.

Environment Save energy and protect water resources in order to deal with climate change and develop a cyclic economy.

Investors Provide reasonable returns for investors and disclose the information regarding the operations and major issues in a timely and accurate fashion.

Employees Provide a safe workplace, competitive rewards and opportunities for career development

Business Partners Cooperate based on good faith and achieve common development

NGO and Community Organizations

Contribute to the harmonious development of the communities and participate actively in working for the public good.

Government Abide by all laws and regulations and pay tax in accordance with the law.

Tsingtao Brewery’s View of Sustainable

Development

Economy

Environment

Environment

Society

ConsumersEmployees

Business Partners

InvestorsNGO and

Communities




Food Safety Management Information System

Good Quality—Happy Drinking

Tsingtao Brewery takes quality management as one of its basic principles. It is quality management that has allowed us to continue to make high quality products for a century. Tsingtao Brewery’s three-dimensional quality management system, comprehensive evaluation, R&D, etc ensures the consistency of food safety and product taste.

A total of 47 manufacturers of the company were certified by the ISO22000 Food Safety Management Standard in 2010, and another 4 plants will be certified in 2011. This means that excluding the newly-built factories, all others will be certified by external food safety management standards.

6Unified Quality Management Standards

Boast

10National Beer Tasters and several Provincial Beer Tasters for evaluation

Complete

9State-level Key Technical Innovation Projects

6Patents Applied in 2010

Organiza

tional Structure and Operating ProcedureFood Safety Management Standards

Food Safety Managem

ent System

Food Safety Management Information System

Strategic Plan for Food Sa

fety

Personnel Development of Food Safety

Food Safety Supervisio

n

Competencies o

f

Food Safety

Food Safety Policy

The company strictly complies with international, national and local laws and regulations.

The company implements comprehensive hazard analysis and risk assessment on raw materials, production, packaging, storage, transportation and other processes and identifies the source of the risks and hazards which need be controlled in order to provide consumers with safe, high quality beer.

Tsingtao Brewery takes food safety as its first priority in strategic management and quality control. Tsingtao does this by establishing a perfect food safety guarantee system which includes strategic planning on food safety, a food safety management system, a food safety management standard, a food safety monitoring system and staff training on food safety. The company achieves a closed loop control process for food safety.

Internal food safety standards are higher than those of national standards.

Food safety indicators are line with the US FDS, EU Food Safety Directives, Japanese Food Industry Standards, the Codex Alimentarius of United Nations and other laws and regulations.

Corporation Strategy

Core

Co

mp

eten

cies of Food Safety M

anag

ement

Food Safety Management




Raw Materials Production Logistics

Implementing strict logistics q u a l i t y s t a n d a r d s w i t h standardized management of transportation, handling and storage.

Using “freshness management” in logistics. “We deliver the beer just as flowers are delivered”.

Follow the “Green Logistics” concept to reduce the impact on the environment.

S t a n d a r d i z e d q u a l i t y control system which passed international certification.

Strict testing with more than 1800 quality control points.

Ful l pur if icat ion during brewing process.

Regularly providing special yeast species to all plants.

Real-time quality tracking and monitoring within all affiliated plants to ensure standardized and unified quality management.

Evaluate during the entire brewing process to ensure a pure and consistent product taste.

S u p p l i e r q u a l i f i c a t i o n assessment system and QS assessment system.

Safe ty management and inspection of raw materials.

Water

7 treatments and more than 50 rigorous test and analysis.

Malt, Rice and Hops

High quality barley is chosen from home and abroad.

Providing a full range of quality assurance certificates according to food safety requirements.

Strict on-site sampling and implementing a “safety veto system” within the purchasing process.

Hammer Refine High



Sales, after-sale services R&D

We attach great importance on new products as well as R&D and promotion of new brewing technologies. We introduce beer with different flavors depending on the preferences of different consumer groups.

Among all Chinese brewers, the Company has the only major laboratory in the country -the State Key Laboratory of Beer Fermentation.

We are the technological leader in the beer industry through expanding the scale and investment of R&D and providing strong technological support for quality technical management.

We promote re spons ib le drinking.

We have a widely-covered service network.

We have consistent service standards.

We have a standardized and smooth after-sales service process.

Grade Quality




Caring for Nature

—Creating Happiness

We use the resources from Mother Nature to brew our world renowned beer. We are well aware that everything is derived from nature and that everything we have can be attributed to nature. We respect our natural world and cherish the environment through establishing a two-way interaction between the company and nature.

Tsingtao Brewery invested more than RMB 50 million in 2010 to create and modify environmental projects in order to meet various environmental requirements, such as sewage treatment, boiler desulphurization dust control, odor processing, noise control and solid waste treatment, etc. Through the systematic environmental management and strict process control, we reduce the energy consumption of the resources and the impact on the environment and the environment performance has been improved significantly.

Unit standard coal consumption decreased by

5.9%compared with 2009

Recovery of carbon dioxide per kiloliter of cold wort increased by

15%compared with 2009Unit water consumption

decreased by


In 2010 comprehensive waste utilization was valued at RMB

1.58million

Tsingtao Brewery strictly complies with environmental laws, regulations and other requirements. At present

the company has identified and collected more than 90 environmental laws and requirements. We organized

training, transforming and implementation. Compliance assessments are conducted regularly every year.

Tsingtao Brewery adheres to the environmental concept that “good intentions will bring good returns”.

We believe the interdependence and mutual benefits in nature inspires the company to establish a broad,

compatible and harmonious relationship with it. In Tsingtao Brewery there are no useless but only misplaced

resources.

For many years we have been committed to establishing, implementing and improving a systematic

environmental management system. At the end of 2010, 31 out of our more than 50 factories around the

country have established and adopted the ISO 14001:2004 environmental management system. Our 4 new

factories began the internal auditing of the environmental management system. We plan for all factories to

pass the environmental management system certification within five years.

Water Management

Water is the source of lives. In the beer industry, water is the most precious natural resource. Water depletion

and pollution are the major challenges we are facing now. Water conservation has been the key strategy to solve

the problem of water consumption. We adopt the concepts of source reduction, process control, advanced

treatment and step utilization to do this.

In 2010 Tsingtao Brewery continued to take a variety of effective water saving measures such as the recycling of

hot water, condensation, machine cooled water, and treated wastewater during the saccharification process and

implemented those measures in affiliated factories.

The factory recycles the condensation from the saccharification brewing process, packaging sterilization machine, and washing machine and uses it in CIP washing for

saccharification, fermentation and filtration as well as the sterilization machine and washing machine. It can recycle 20 thousand tons of condensation and save water fees worth RMB 43 thousand annually. It can also save 7000 tons of steam within one year.

Case

1 2 3Brewing Saccharification

Packaging Sterilization Machine

Washing Machine

5.93 5.447.03 5.20

Unit Water Consumption m3/kiloliter

20082007 2009 2010

543 590506 640

Output of Beer ten thousand kiloliters

20082007 2009 2010

In 2010 Tsingtao Brewery trained nearly 200 employees in environmental protection positions with a course teaching environmental p r o t e c t i o n l a w s a n d regulations, clean production, e n v i r o n m e n t a l c r i s i s management, wastewater, waste gas, noise, odor, solid waste treatments and other fields in order to make every employee aware of the importance of environmental protection and work actively to take env i ronmenta l responsibility in their daily operations.

Water Resources Protection

Environmental Management Mechanism




0.45 0.370.48 0.34

COD discharge amount per unit product kg/kiloliter

20082007 2009 2010

4.15 3.904.61 3.66

Waste water discharge amount per unit product m³/kiloliter

20082007 2009 2010

Control Wastewater Discharge

The key to preventing water pollution is implementing clean production and controlling wastewater discharge

in accordance with current standards. Tsingtao Brewery built and renovated the environmental protection

facilities of its affiliated factories and ensured that the sewage treatment discharge was completely up standards

through the following measures such as establishing an effective incentive system, training the professional

technicians, standardizing sewage treatment, etc. In 2010 unit COD emissions of the company was 0.34 kg/kl

with a reduction rate of 8.11%, 3.11% better than the target.

Process and Implementing Standards of Sewage Treatment

Tsingtao Brewery utilizes the following technologies for wastewater treatment: “UASA Anaerobic + activated

sludge aeration” and “Hydrolysis + contract oxidation”, etc. The wastewater discharge adheres to such standards

as “Emission Standards for Beer Industry” (GB19821-2005), “Discharge Standards for Wastewater into the City

Sewer” (CJ3082-1999) and other local emission standards.

Standardized Sewage Treatment

In 2010 the company issued 16 criteria for sewage treatment and 22 sewage SOPs to further standardize sewage

treatment operations and implement sophisticated sewage management. The factories have established a systematic

sewage treatment management model by effectively transforming, earnestly implementing and regularly following

up on the sewage treatment process indicators in order to keep it within the specified range. They also monitor the

sewage mouth daily by comparing on line records in order to ensure that sewage discharge is in accordance with

requirements.

In recent years, Tsingtao Brewery has continued to increase its

wastewater treatment efforts. In 2010 the wastewater treatment of Tsingtao Brewery Plant 2 not only reached national Level A standards, but also discharged the treated water directly into the Licun River to provide Licun’s urban landscape with 2.2 million tons of water. This promoted the renewal of the ecological environment in Licun. Tsingtao Brewery Plant 2 was the first to provide treated water to ecological environments in China.

Case

Three cups of water shows the quality of water treatment.

Photo-The “Shelf” is made up of the special brick by the waste diatomaceous soil. The fertilizers on the display come from the sludge of wastewater

treatment and the nutrient tablets from the yeast. All of these are testament to Tsingtao

Brewery’s concept that “there is no waste but only misplaced resources”.



Greenhouse Gas Verification

Product Ecological Footprint Calculation In August 2010, Tsingtao Brewery started the calculation of

its ecological footprint by analyzing its 330ml of beer exported to the UK. The company cooperated with an

experienced environmental science company from Taiwan. In accordance with the requirements of PAS2050,

the company calculated carbon emissions based on the product life cycle, including raw materials, production,

logistics, consumption and disposal. Also, through systematically collecting data, analysis and research, we

discovered that greenhouse gasses can be reduced and we were able to speed up emissions reductions from

greenhouse gases in the supply chain and promote industry upgrades from the business model. The whole

project was ended in December. According to our calculations, we found that raw materials and logistics

accounts for the largest share of carbon emissions during the full life cycle of the beer. This will be our focus in

future emission reductions.

The greenhouse gases during the beer brewing process generally

comes from electrical consumption, fossil fuel burning, the brewing

process and wastewater treatment processes.In order to actively cope

with climate change, Tsingtao Brewery has taken measures such as

energy conservation, recycling of carbon dioxide and greenhouse gas

verification as well as beginning the low-carbon business model and has

been strived to become the low carbon economy leader.

Coping with Climate Change

14.33 17.8312.84 20.52

Volume of recycling carbon dioxide kilogram/kiloliter of cold wort

20082007 2009 2010

69.25 59.7078.16 56.17

Standard Coal Consumption kilogram/kiloliter

20082007 2009 2010

75.99 70.6284.22 69.46

Electricity Consumption kilowatt/kiloliter

20082007 2009 2010

The “Carbon Official” training project is a new approach to carbon

management implemented to ensure an effective low-carbon

strategy. By combining organizational GHG projects and carbon

footprint calculation, Tsingtao Brewery organized 11 training

sessions with 330 trainees in 2010. Fan Wei, president of the

manufacturing center once pointed out that “Carbon officials were

a completely new career and would become one of the company’s

core competencies”. 10 people have the capability of investigating

greenhouse gases independently and calculating the current carbon

footprint. Greenhouse Gas Verification Meeting

Product Transportation

39.15%

Waste Products Product Utilization

0.11% 0.00%

Made in the Factory

7.38%

Raw Materials

53.36%

Cap

Two Standardizations

CartonPlate

Paper Format

Box for Carrying

Hot Melt Glue

Malt HopsRice

Water

Beer Bottles75.22%

0.75%0.49%

5.34% 0.52%

0.99%

0.54%

0.12%7.60% 0.15%

7.98%

0.02%

Amount of GHG emissions in the product cycle per 330 ml exported to UK

Amount of raw material emissions per 330 ml exported to UK




Carbon Dioxide Recycling

Beer produces a lot of carbon dioxide when fermenting and

carbon dioxide is needed during beer bottle filling process.

Tsingtao Brewery implements a carbon dioxide recycling

technology. We collect the carbon dioxide during the

fermentation process and use it in the filling process. These

steps reduce greenhouse gas emissions and costs. According

to statistics, in 2010 the recovery of carbon dioxide per

thousand liters in cold wort amounted to 20.52 kg, an

increase of 15% compared with 2009.

CO2 Recovery Device

17In 2010 the company invested in CO2 recycling.

million

1933 1516 1267

Emissions ton/year

2008 2009 2010

405 345 305

Annual Average Concentration my/m3

2008 2009 2010

Controlling Waste Gas Emissions

The majority of gas wasted is emitted from the boiler flue during brewing. In order to control the pollution

caused by boiler flue gas and SO2, the company adopted a variety of measures in 2010. Measures included

decreasing SO2 emissions by 12% to 0.22 kg/kl, 7 percent better than the target. We achieved our target of

continuing to reduce SO2 emissions by 5%. Meanwhile the compliance rate of boiler flue gas emissions reached

100% in 2010.

Energy Usage

In 2010 the company introduced a comprehensive energy saving technology which used heat-wave boiling to

recover heat, leading to fermentation with rapid cold and CO2 recovery during technological transformation.

Also the company popularized new technologies like cascade refrigeration and waste heat recovery in the

affiliated factories and greatly reduced operating costs.

According to the preliminary statistics, in 2010, 48 factories have implemented step-down transformation in

air systems and cooling frequency transformation; 46 factories utilized the low-voltage compensation of power

distribution; 39 factories have implemented the heat wave technology, and so on. All of these energy-saving

renovation projects reduced RMB 37.23 million from operating costs.

In 2010 Tsingtao Brewery successfully tested waste heat refrigeration projects. During the summer, we utilize the wasted heat from the saccharification system to produce ice

water from a lithium bromide refrigeration unit. In winter, we used the excess heat to heat our plants. According to preliminary calculations, each summer we can save more than 700 thousand kWh electricity. Every winter, we are able to save more than 5 thousand tons of steam. This is equivalent to 650 tons of standard coal.

Case



The employee’s self-made handicrafts made with used parts: fish bone diagram.

Qingdao citizens visited Tsingtao Brewery.Environmental Governance

Community representatives participated in the environmental protection activities of the Tsingtao Brewery Cup and received the environmental initiatives.

15%

Unit COD discharge during manufacturing in the future three years will reduce more than

58Unit electricity consumption in 2013 will be reduced to

kilowatts/kiloliter

45Unit coal consumption in 2013 will reduce to

kilograms/kiloliter

Attainment rate of pollutant discharge is

Annual unit COD discharge reduction rate is

Annual unit SO2 discharge reduction rate is

100%

5%

5%

4.2Annual unit SO2 discharge reduction rate will fall to

m3/kiloliter in 2013

Future Environmental Protection Aims

Stakeholders’ Participation

Current success is far from the end. Facing the future, Tsingtao Brewery will continue to work towards more

ambitious environmental goals. Based on our environmental performance in 2010, we will strive to achieve

our environmental goals over the next three years (See right cases).

Circular Economy

Developing a circular economy is a win-win action for both economic responsibility and environmental

responsibility. Tsingtao Brewery adheres to the 3R principle of “reduce, reuse and recycle” and focuses on the

recovery of all raw materials and by-products produced through the entire process. The recycling rate of 2010

reached 100% for distiller’s grains, yeast, wheat roots and packaging waste. The comprehensive utilization value

was 158 million, an increase of 21.5% from 130 million in 2009.

Tsingtao Brewery Economic Chain for Recycling

Barley

Electricity

Water Coal

Waste waterCullet

Accessory waste

Waste diatomite and

waste slag

Condensed water

CO2

Beer bottling

Recycling

Fodder

Bio-pharmaceutical

Building materials

Beer bottle

Boiler water supply

Make waste profitable

Sewage disposal

Afforesting and greening

Boiler desulphurization and dust control

Distillers’ grains and malt culms

Used lye

Beer

Wasted heat

Distribution of resource

Cleaning in Place (CIP)

Wasted yeast




Contributing Love

—Contributing Happiness

As a member of society, Tsingtao Brewery has always devoted itself to society and is concerned about the needs of the community and the public. Tsingtao is committed to dedicating itself to society and to act as a responsible corporate citizen. With a century of history, Tsingtao Brewery makes social responsibility its first priority and, adopts the philosophy that “social value is always higher than the enterprise value.” Tsingtao actively promotes the development of China’s charity and public welfare undertakings while becoming bigger and stronger. The concept of “fraternal love and common love” will lead our partners to “bear social responsibilities” together and this spirit affects more and more people.

119excellent programs supporting education received RMB 1000,000 in pecuniary aid

The total number of donations in 2010 was RMB

9.52million

Tsingtao Brewery-QSL Youth Sports Development Foundation has raised more than

4,200million in various types of funds.

Product identifications which express that “excessive drinking is harmful to your health”.

Cooperate with radio stations to spread the message that “Beer is delicious but don’t drink to excess, Tsingtao Brewery reminds you not to drink and drive”.

Develop and produce low alcoholic, low calorie beer and promote the consumption of low alcoholic products.

Distribute advertising pages to advocate reasonable drinking during promotions.

Age inquiry at the opening page of the company’s website and an advisory which says that “It is illegal to consume alcoholic beverages under the age of 18”.

Our Actions

We recognize that rational consumption of our products is very important. We ensure that all marketing and sales activities are initiated based on the concept of rational drinking. We are very concerned about drunk-driving, high-risk drinking, and underage drinking, and we minimize the occurrence of such incidents through a series of measures.

Our Philosophy

People who should not drink

Minors should not drink because they are not physically and psychologically mature and alcohol may damage their bodies. Pregnant women should avoid drinking during pregnancy as alcohol will cause the fetus potential health risks. If women drink during lactation, alcohol may also bring harm to their baby by being transmitted into the breast milk.

Drivers should not drink and drive. Drunk-driving will not only bring tremendous risk of life to the driver and passengers, but also to innocent people who may be hurt or injured causing suffering for many families.

Patients should avoid drinking alcohol during the treatment, because alcohol may affect the therapeutic effects.

Excessive drinking will cause physical and psychological damage for every consumer, while heavy drinkers may also pose a threat to people around them.

Rational Drinking

Tsingtao Brewery’s cheering squad baby in the street, publicizing the concept of responsible drinking.




In 2010, Tsingtao Brewery also established a special scholarship for

Qushan primary school in Beichuan to reward outstanding students and

excellent teachers who have contributed greatly. This action promoted

and strengthened local education. 50 outstanding students and 10

excellent teachers have received the first round of scholarships. .

Teachers and students from Beichuan as well as psychological volunteers participate at the camp in 2010.

The President of Tsingtao Brewery awarded the scholarship to excellent teachers from Qushan Primary School.

Tsingtao Brewery donated athletic equipments to Qushan Primary School

Continuous care for the soul—“Psychological Assistance” program for the children affected by the Sichuan earthquake.

Since the 5.12 earthquake disaster happened in Sichuan, Tsingtao Brewery set up a charitable

trust for psychological assistance and started the Sichuan earthquake psychological assistance

program. During the past two years, the company invited psychological experts to visit earthquake

stricken areas, especially Qushan Primary School, and Chengjiaba primary and secondary

school in Beichuan, providing teachers and students with systematic psychological counseling.

The company repeatedly sent psychologists and volunteers to work and live together with the

local teachers and students and helped them set up classes such as music, dancing, martial arts,

sports, games and other courses. We also set up a group for three children who lost their families.

As a part of the psychological assistance, the psychological camp consisting of the teachers and

students from Beichuan was held in Qingdao for two years. The teachers and students visited

Qingdao and admired the beauty of the scene. Today, the psychological experts have established

accurate psychological profiles for every camper according to their specific situations by observing

camp activities and through a trusting relationship with the campers. They will develop further

psychological assistance programs and while monitoring any developments. After the over two-

years of assistance, the teachers and students from the disaster area have established a better life,

and are looking forward to the future.

Social Charity Activities



Getting People Moving With Project Hope --Tsingtao Brewery –QSL Happy Basketball Supporting Education Program

In April 2010, Tsingtao Brewery –QSL Happy Basketball Supporting Education Program was

officially launched. This activity was the extension of the Tsingtao Brewery –QSL Youth Sports

Development Foundation. Its aim was to encourage college students to participate in social welfare

activities and to improve their skills so as to help them realize their dreams. In order to enrich the

primary and secondary school sports activities, the sports and charity programs were combined

for the first time asked for college student’s self-designed sports charity project ideas and provided

them with financial support.

The program was carried out in the universities of five provinces including Sichuan, Hunan,

Hubei, Guangdong and Guangxi. 119 supporting education programs were selected and

received a total of RMB one million in grants provided by Tsingtao Brewery –QSL Youth Sports

Development Foundation. More than RMB 42 million was raised by Tsingtao Brewery –QSL

Youth Sports Development Foundation to hold the activities and also to solve the problems of a

lack of sports facilities for more than 200 schools located in poor areas.

On December 17, 2010, the top college students in Tsingtao Brewery –QSL Happy Basketball

Supporting Education Program and Boys and Girls Clubs, a local charity organization in USA,

jointly held an exchange program called “Happy Supporting Education, Love beyond borders”.

The students were also in close contact with NBA stars who gave them professional basketball

training, allowing the students to realize their NBA basketball dream.

Trevor Ariza, NBA star, took photos with teachers and students of Jiangnan Elementary School, Yueyang, Hunan province.

Representatives of Tsingtao Brewery presented gifts to the students and took photos with them.

100A total of RMB one million in grants provided by Tsingtao Brewery –QSL Youth Sports Development Foundation

258

119

A total of 25 college student teams from 5 provinces submitted

supporting education programs plans

supporting education programs were selected.




Dancing with Passion and Realizing Dreams

In 2010 the Tsingtao Brewery “passion dance” NBA cheerleading squad team trials were held again, covering

more than one hundred cities. The trials attracted 300,000 participants and affected hundreds of millions of

people forming a surge of popularity for dance in the country. The event continued to uphold the concept

of “promoting the spirit and passion of the sport, and realizing the dreams of ordinary people.” It gave girls

the chance of realizing their NBA dreams. The ten finalists gave performances in the USA and displayed the

elegance of Chinese girls who were well received by the American people.

Tsingtao cheering squad blew a Chinese

Tornado at the American NBA court.

Donating Warm Blood during the Cold Winter Days

In early 2010, due to the flu epidemic, the country’s blood collection and supply situation was relatively low

and the blood supply could not meet demand. Local employees from Tsingtao Brewery took heed of the

government’s advice and actively participated in donating their blood without pay. There were a total of 327

employees who volunteered and 291 of them met the requirements. The total blood donated by the employees

was 100,500 ml，or 345 ml per person. In this way the donors gave the people their blood and sincere love in

order to ease the critical conditions at the blood bank.



Bazaar at the Xiamen Branch

Funding Education

In 1996 Tsingtao Brewery set up the “Tsingtao University-Tsingtao Brewery Talent Cultivation Scholarship”.

During the past 15 years, 1,022 excellent students have benefited from it. In 2005 Tsingtao Brewery, cooperating

with Qingdao Education Development Foundation, set up the “Tsingtao Brewery Excellent Teacher Award.”

Since then, more than 1,000 outstanding teachers have been given commendation. By the end of 2010 Tsingtao

Brewery has donated a total of RMB16 million in education funding along with issuing incentive payments of

more than RMB 2.8 million.

In 2010 Tsingtao Brewery established the “Tsingtao

University-Tsingtao Brewery Scholarship for

Outstanding Talents” which rewards full-time

graduate students with excellent academic

performance from poor families. Until now 30

students have received this scholarship.

Tsingtao Brewery has participated for many years in funding the “Tsingtao Brewery

Excellent Teacher Award”.

Other Charitable Actions

Tsingtao Brewery has donated to the Qingdao Foundation for Disabled People for many years as well as has

donated more than RMB1.88 to the Care Project to present.

Tsingtao Brewery’s Beijing office and Xiamen office also actively support local organizations which aid special

education programs in order to help the children at school.

Special education schools send a banner to Tsingtao North Sales Company.

RMB16

2.8

The company donated in

education funding until 2010

The company issued incentive payments until

2010

More than RMB

million

million




Harmony Among All

—Sharing Happiness

At Tsingtao Brewery, we have expanded the customer culture to all stakeholders. We see employees as our internal customers and we consider consumers, shareholders, communities, our suppliers and the retailers as our external customers.

In 2010 Tsingtao Brewery shared its growth and achievements with its employees. The company will continue to provide ongoing training and development channels for employees, advocate the win-win value in the supply chain and achieve mutual benefits, mutual success and mutual prosperity.

We have trained

141,973employees within the company in 2010

Number of Employees

39,738Total payroll increase by


Work injury rate was

0.08%in 2010

At Tsingtao Brewery, our aim is to be people oriented. Our human resources management mission is to

“motivate our workers as well as create an atmosphere of harmonious development and happiness for our

employees”. We see our employees’ satisfaction, the development of their potential, the realization of their value

at Tsingtao, and improvements of their quality of life as the foundation of enterprise development. At Tsingtao,

we have always stressed the spirit of respect and equality among our employees.

Tsingtao Brewery was awarded the “Best Employer in China Enterprise in 2010” during the Fifth Ceremony of

China Employer Brand 2010, it was the second time Tsingtao Brewery had won this honor. 0.27 0.15 0.08

Number of work injuries per 100 employees %

2008 2009 2010

11.26 7.47 5.32

Work Days Lost (day) Per hundred days

2008 2009 2010

68 40 20

Times of work injuries

2008 2009 2010

The objective and vision of safety management at Tsingtao Brewery is to “make the factory a safe, healthy

and happy place to work”, putting a solemn commitment to our employee’s safety. Over the years, the

company has continuously improved safety performance by establishing, implementing and improving the

OHSAS18001 occupational health and safety management system.

Occupational Health and Safety Management

348

1.2%

39,738

Increase in the number of employees with college degree or above.

Increase of Female Employees

Number of Registered Employees

Rights and Interests of Employees

In order to protect the rights and interests of our employees, Tsingtao Brewery strictly complies with national

regulatory requirements. We do this through policy advocacy, negotiations and information symmetry to

improve communication and protect our staff ’s rights. In 2010 the Employee Relationship Management

Conference was held. Based on the previous system, we established the new “Internal Controls Standards for

the Relationship between the General Management and the Employees” , and improved the organizational

culture leadership model, communication motivation and other emotional dimensions, of the staff relations

management system.

Employee Safety Training

In order to lay the foundation of the company’s culture of safety, the company has institutionalized safety

for our staff ’s daily routines through security training to improve their safety awareness. The company has

achieved national, level-three security education, and made it clear how much content and the number of

hours that were required for different positions to ensure effective safety training.

To better improve occupational health management, the company examines the operating environment

every year. The company also helps employees affected by occupational hazards and all personnel in special

operations positions to examine their health conditions. Up until the end of 2010, there were no reports of

employees suffering from occupational diseases.



Focus on Employees’ Health and Development


Salaries and Welfare

The company developed a wide range of compensation management models “Both Competitive and fair,

reflecting the personal values of our employees” according to their different positions and properties. This model

motivates the employees in a flexible and effective way. In recent years the company gradually implemented

the transformation from the value created by the tangible capital to value created by human capital as well as

a transformation from operational costs to incentive costs. It is this way in which our employees can share the

company’s achievements as it develops.

New Staff Integration Course

Operating Skills Training

Professional Abilities Improvement

Leadership

Corporate Mission Statement

Culture Safety Environment

Professional Concepts

Team Spirit

OJT for Manufacturing and Marketing

Golden blue-collar Program

Micro-operation Marketing Training

Professional School for Manufacturing

Marketing Training Base

MBA/EMBA

Comprehensive Management Capabilities

Leadership

Employee Training at Tsingtao Brewery

Suppliers Dealers College Students Cooperative Education Units External Exchange

Senior Management

Mid- Level Management

External Training

Professional Technician, Line Managers and Frontline Staff

14.61%Total payroll in 2010 increased compared

with 2009.

2010 Tsingtao Brewery “Pine Tours” Management Training

Camp--Two -Weeks Professional Development Training

4,386Number of people with

qualified certificates after special operations training

people

2010

10.7Average safety

training time

class hours

2010

>24Average training time of new staff

class hours

2010

Career Deve lopment and Training

We provide staff with different learning

programs and training courses to help

them reach their full potential and to

achieve improved career development.

We built the learning and developing

platform for all of our employees, from

interns to senior administrators to help

them in planning their career path. In

this way, every employee can find their

most suitable position at Tsingtao.

520

2,080

Attendance

Total

people

courses



Professional Internship Program:

In 2009 Tsingtao Brewery and 6 national un ivers i t ies jo int ly implemented the “Professional Internship Program” where more than 1,200 students have been trained to present.

Corporate University Programs:

Tsingtao Brewery Management University instructs professional schools in packaging, brewing, power and QA as we l l as training centers covering major customer development, micro-operations, KA, performance, dealers, etc. A total of 10,026

people were trained in 2010.

Management Trainee Program:

In order to ease the employment p re s su re o f g r adua te s and rese rve ta lent Ts ingtao has implemented the program since 2005 and provided a total of 3,500 internship positions. After assessing their performance, the company ultimately hired 2,500 graduates and provided “the right

people” to work for the company.

Golden Blue-Collar Program:

Tsingtao Brewery begins job training for primary operators and organizes skills competition every two years. From July to December, 2010, Tsingtao Brewery held its third skills competition which included the participation of 5,628 employees’. After the semi-final competition in eight divisions, 376 employees moved on to the finals. A total of 890 employees got the appropriate national vocational qualifications by participating in the competitions. The company cumulatively allocated RMB1.03 million in special bonuses to hold these competitions.

Manager Training Camp and Leadership Enhancement Plan:

The Company has a long h i s tory of cooperating with domestic universities to create a learning platform for senior executives. In 2010, we continued to cooperate with the University of International Business and Economics at J iang Nan University and started Business Management Courses (Phase II), Brewing Courses (Phase III) and Mechanical Engineering Courses (Phase I). The total number of trainees was nearly 300 and also the company selected and sent administrative personnel to participate in EMBA courses in the top national universities.




Achieve “mutual profits, mutual success, mutual prosperity” with Business Partners

Support the Dealers Wholeheartedly

We emphasize that we should protect the profitability of retailers through high quality products, branded with high value as well as

an efficient business model and increase efforts to support the retailers by:

Tsingtao Brewery Annual Conference of Global Suppliers

On October 12, 2010, Tsingtao Brewery held its annual conference of global suppliers. Nearly 200 suppliers from Germany, France, the United States and other countries from all over the world came together. The theme of the conference was “mutual benefits, mutual success and mutual prosperity.” The theme conveys Tsingtao Brewery’s cooperation philosophy of “win-win cooperation, making profit s ethically”. Tsingtao Brewery improves itself while promoting common development and keeping in mind its domestic industry peers and partners.

In 2000 Pacific Can Co. and Tsingtao Brewery jointly launched 500ml cans for the first time in Chinese market. Years after being intruded to the market, the domestic sales of 500ml cans in 2010 reached 350 million. This is 35 times compared with year 2000 numbers and is proportionate to 90%of the company’s Pacific market shares. The Tsingtao Brewery’s 500ml can market share has reached about 50% of the market. To enhance bilateral cooperation, the Pacific Cans Co.’s fifth factory settled in Qingdao.

Case

Establish and improve the client managing system and carrying out a “one on one” policy to help retailers develop their business steadily.

Improve the training system for the retailers, establish training bases for them and organize the retailers to develop Best-Practice Activities. In 2010 the company organized retailer training 1,762 times for all levels.

Guide the retailers to develop a dealer channel model and optimize the profit model.

Actively introduce a feedback and handling mechanism for key customers and understand the comprehensive expectations of the retailers and improve the customers’ satisfaction.

Establish a comprehensive and digitalized evaluation system to select and optimize suppliers. We are concerned not only of the quality of products and services, but also, we consider the business philosophy and social responsibilities of the suppliers as the most important basis for selecting and evaluating.

Establish stable, long-term cooperation with business partners. Promote the upgrading of the product quality and the application of good management ideas through sharing their advanced management experiences.

Utilize gradually the information technology and open the supplier portal. Establish the exchange plateform for order planning and production information as well as improve the system efficiency.

Establish the mechanism with partners for jointly developing and in-depth studying new materials and new technology so as to save supply chain system costs.

Tsingtao Brewery puts its full attention on its business partners and strives to achieve a symbiotic and mutually supportive

relationship with them. Based on the “win-win cooperation, making profits ethically”, Tsingtao Brewery can continuously improve

itself.

Tsingtao Brewery and business partnersSucceed hand in hand and develop together



Our Voice

Good Quality—Happy Drinking

As a company famous for its high quality, Tsingtao Brewery treats integrity as the critical part of its culture and high quality as it’s most precious belief. The founders of Tsingtao Brewery believed that a good person brews good beer. Because of its superior quality, Tsingtao Brewery has won the affection from people all over the world. In the future, Tsingtao Brewery will continue to take consumers’ demands as the core concern, insist on continuing its “purifying brew”, and provide consumers with healthy, safe and green product.

We combine a brewing technology that has existed for a century with the latest clean production technology. We mobilize all of our employees to take various measures to save water and reduce energy consumption and to reuse waste materials. Environmental protection is an ongoing process. If we treat nature in a friendly way, nature, in turn, will treat us in the same way.

When a person helps his fellow man, we call him tenderhearted. When a person helps others in trouble, we call it goodness. It is not only a dedication to society but also a responsibility for the company’s sustainable development that Tsingtao supports and participates in charity activities. Tsingtao Brewery is willing to make unremitting efforts to build a harmonious and warm social environment.

Dong Jianjun

Chief Brewer of Tsingtao Brewery

Fan Wei

vice president and president of manufacturing center, Tsingtao Brewery

Wang Fan

vice chairman of Tsingtao Brewery

Apart from beer tasting, we also enjoy tasting a variety of related raw materials such as: brewing water, washing water, the plastic pad of the bottle cap, fermentation broth, diatomaceous soil, rice and so on. Once when I found there was an unusual smell on the inner cap, and the supplier could not identify the reason. To ensure the product’s quality, the supplier and I examined one process after another and finally found the trouble spot and improved the process to ensure the pure taste of our beer. This is our job as a beer taster. We brew our beer like one would create a work of art. When the consumers drink delicious and satisfying beer, we know we did our job right!

“I used to be a large-capacity boiler operator, working in that position for twenty years. Before, I thought that I would never lose my job because it was an iron rice bowl. However, when the factory shut down the boiler, I had to transfer to another position. At the beginning the new position was difficult to understand. However, I found out that the old boiler, despite being desulfurized and cleaned of soot, some soot still remained. I feel happier when I think that after shutting down the boiler, the factory will achieve zero emissions for soot and sulfur dioxide and give the residents around the factory a cleaner environment. It is definitely worth it!

“As our school was built by Tsingtao Brewery, we got to witness firsthand the care and support from Tsingtao Brewery and the community. I want to express my appreciation to them. Our beautiful school was built and equipped with the most advanced and complete teaching facilities. After more than two years’ psychological counseling, the teachers and students in the earthquake stricken area have established a better life, yearning for the future and a firm belief in life!”

Zhu Lei

National beer taster and staff member

of Tsingtao Brewery Plant 2

Xu Shenghai

Staff of Tsingtao Brewery

Chen Yong

schoolmaster of Tsingtao Brewery Qushan Primary School

Brewing beer that is highly appreciated by the consumers with our passion and creating a happy life.

Contributing Love

—Contributing Happiness

Caring for Nature

—Creating Happiness




Brewing beer that is highly appreciated by the consumers with our passion and creating a happy life.

Caring for the employees

Employees of Tsingtao Brewery are important assets of the company rather than seen as costs. They are the key for Tsingtao Brewery to achieve added value and forge core competitiveness. The implementation of Tsingtao Brewery’s strategy ultimately relies on its talent. In Tsingtao Brewery’s eyes, investment on our staff is the investment on the future of the enterprise. How do we train employees to continuously improve their professional skills and professionalism? The talent of our employees is the most dynamic, creative dimension in all the operational resources of the company. They are able to continually add value and are the power source for creating new value.

The supply chain is a platform where equality, cooperation and mutual success, mutual benefit, mutual respect and mutual accountability serve as the foundation. We are working actively with our partners to establish a harmonious supply chain system. We see our partners as our customers. Through close cooperation as well as timely and effective communication, both supplier and retailer will get opportunities to improve quality, cost, management and service in order to achieve win-win development for both sides.

For many years Tsingtao Brewery has constantly adhered to the concept of “Business Integrity, Taxation by Law” and disclosed in a timely manner operating conditions and the important events of the company so that investors can better manage their investments. Sound sustainable development not only brings profit for the company but also pays back to the internal and external customers as well as creating more wealth for the shareholders and society by offering more tax revenue for the country.

Jiang Hong

vice president of Tsingtao Brewery

Yu Jiaping

vice president of Tsingtao Brewery Manufacturing center

Sun Yuguo

vice president and executive director of Tsingtao Brewery

Twenty years ago, I was a common junior staff when I first entered the company. For years, I gradually accumulated a lot of experience in the learning and training system which were continuously held by the company and the plant. I repeatedly got awards and recognition in the skill competitions organized by the company and later realized my transformation from an ordinary operator to attaining “golden-blue-collar “status. Some people asked me whether I would quit if I was offered a higher salary elsewhere. I think it is not easy to do one thing for twenty years. At Tsingtao Brewery, I have achieved growth, learned skills, gained recognition and realized my value. All of that cannot be measured with money because working at Tsingtao gives me a sense of respect and honor to my career and life.

It is our company’s honor to cooperate with Tsingtao Brewery. We achieve a win-win relationship in terms of opportunities and understand each other. We stick together when challenges arise. Through long-term strategic cooperation we have gained social recognition and respect and obtained sustainable development in the Chinese market.

In 2010 Tsingtao Brewery continued to take the development strategy of “both integration and expansion” and had, as a result, acquired, built and expanded a number of factories. When designing and constructing the new plants, we have always advocated the concept of “green and environmental protection” and strived to establish a series of factories with the optimal allocation, the most advanced technology and the best efficiency in domestic beer industry. We will bring more economic benefits, environmental benefits and social benefits for the local citizens.

Yu Jianghong

staff of Tsingtao Brewery

A supplier

Huang Kexing

vice president of Tsingtao Brewery

Win-win and mutual prosperity

with business partners

Green wealth and green investment



Honors and Awards in 2010 (Partial)

China’s Top 100 Green Companies

First China’s Green-Golden Award

2010 China’s Best Employers

China’s Most Admired Companies in 2010

China’s Best Corporate Citizen in 2010,

Most Admired Knowledge Enterprise Award

China’s Best Company in Leadership Development

China’s 500 Most Valuable Brands

2010 Best Social Responsibility Report in Food & Beverage Industry for Listed A-share Corporations

China Entrepreneur Club and Daonong Center for Enterprise

Fortune (Chinese Version)

21st Century Business Herald

21st Century Business Review

Hong Kong Knowledge Management Association Knowledge Management

Research Center, the Hong Kong Polytechnic University

China Entrepreneur and the HAY Group

Rankings CSR Ratings

Hexun.com

Det Norske Veritas

World Brand Laboratory

SOHU & AT Kearney, Inc.

International Human Resource Management Association

School of Labor Economics, Capital University of Economics and Business

Honors and Awards Organizers




Review and Suggestions on 2010 Sustainability Report of Tsingtao Brewery

Third-Parties Evaluations

In 2010, the output of China’s beer industry was

44.83 billion liters. It should be no surprise that

it was the top beer producer in the world for the

ninth consecutive year. At the same time, the

industrial structure has been further optimized

with profitability significantly increasing and

intensive development advancing steadily. All

of these show that China’s beer industry has

witnessed relatively stable development in 2010.

The reasons why China’s beer industry can

achieve such harmonious development nowadays

are: first, the country’s active and stable economic

development strategy creates a suitable external

environment for the beer industry. Next, the

leading enterprises of the industry play exemplary

roles and have stabilized the beer industry’s

development. Tsingtao Brewery is obviously one

of these companies.

Tsingtao Brewery’s 2010 Sustainability Report

shows that during the past year, Tsingtao

Brewery has made considerable progress and

positive developments, especially in terms of

social responsibility, which is a good example

to follow. Tsingtao Brewery established sound

environmental management mechanisms which

focus on water conservation, energy management,

climate change, comprehensive utilization of

waste and makes controlling them the target of the

company’s environmental strategy. The company

actively implements new energy saving initiatives,

continuously improves its environmental

performance and has become a model for

the beer industry. As a responsible enterprise,

Tsingtao Brewery will never forget to make their

contributions to society and is concerned about

the needs of the community and the public. The

company is dedicated to the society and being

a responsible corporate citizen and extensively

publicizes rational drinking and participates in

charity activities. All Tsingtao Brewery’s efforts

have been recognized by the country, the industry

and society, bringing it all kinds of honors and

praise from the country. On the other hand, the

company was recognized as a national example

for clean production. Tsingtao Brewery is the first

company that started the greenhouse gas inventory

in the industry and signed a “low-carbon research

agreement” with the China National Institute of

Standardization and China Quality Certification

Center. This research will study greenhouse

gases coming from the production process and

ultimately help to find a more environmentally

friendly model to produce beer. The exemplary

role of Tsingtao Brewery will lead more breweries

to join the low-carbon development movement

resulting in long-term sustainable development in

China’s beer industry.

In summary, the report shows not only the

integrity of Tsingtao Brewery as an industry

leader, but also its leading role in China’s brewing

industry. It does this through its great attention

to product quality and implementation of

social responsibility including saving resources,

environmental protection and charity activities

following its belief in cooperation, mutual profit,

mutual success and mutual prosperity.

China Brewing Industry Association, Beer Branch

Suggestions for the Report:

It is suggested that the company further enhance its cooperation and exchange with the industry and promote the common progress and harmonious development of the entire industry.

It is suggested that the company should continue participating in domestic and international charity activities, maintain a positive image and enhance the international status and stature of the Chinese brewing industry.



I have read carefully the “Sustainability Report of

Tsingtao Brewery Co., Ltd. 2010” (hereafter refers

to as “the Report”). The comments are made as

followed:

I. Comments on the Report

This is the third sustainability report of Tsingtao

Brewery in which the company fully discloses,

as the backbone of China’s beer industry, it’s

adherence to the guidelines of scientific concepts

of development. Implemented through our

mission statement “with our passion brewing

beer for consumers’ preferences and creating joy

for them” according to “Guidance For Corporate

Social Responsibility Among Government-

owned Enterprises” by SASAC, fulfill earnestly

their social responsibilities and make positive

efforts for achieving sustainable development. The

report introduces the practice and performance

from the aspects of providing products with high

quality, devoting to environmental protection,

enthusiastic about the public welfare and growing

with the stakeholders with the topics of drinking

pleasurably, creating happiness, dedicating

happiness, sharing happiness. The report lays

stress on the key points and highlights the features.

In the report the chairman explains in detail the

company’s mission of responsibility, concept of

responsibility and capability of responsibility and

reflects the general idea that the company will

combine social responsibility with its business

operations which is in line with the latest trends of

the international corporate social responsibility.

The report clearly introduces the management

structure and key initiatives of food safety

management and product quality management

as the Part of “Brewing High Quality Products”

which reflects that the company gives a priority

to food safety and is effectively responsible to our

consumers.

The report discloses the company’s environmental

protection measures such as sound environment

management , active response to climate change,

carbon dioxide recovery and comprehensive

utilization of resources in the “Caring for the

Nature” section and demonstrates that the

company seriously implements environmental

protection measures, plays an exemplary role in

the industry, and strives to lead the industry on

green development.

The report introduces the typical cases about how

the company is concerned with our consumers’

health, it’s compassion through charity, its efforts

to become a responsible corporate citizen in the

“Dedicate Happiness” section and reflects the

company’s commitment to contributing to society

and promoting a harmoniously developing society.

The report introduced the company’s concerns

for our employees’ development and win-win

cooperation and that we grow together with our

partners in the supply chain. This reflects the

responsibility that the leading enterprise of the

beer industry should have.

In conclusion, the report is logical, rich in content

and reflects the characteristics of the industry’s

social responsibilities and the corporate sustainable

development. The report is in accordance with the

requirements of the Global Reporting Initiative

by the United Nations and innovates even

further in content, layout, etc. This is a high-level

sustainability report.

II Suggestions for the Report

It is suggested that the company further enhance

its publicizing and training of social responsibilities

and improve the responsibility awareness of its

employees with a sound social responsibility

promoting system in order to better fulfill the social

responsibility of the company. It is also suggested

that the company participate in domestic and

international social responsibility organizations and

major social responsibility affairs to improve the

company’s CSR influence.

Office Director of China Network Center, the UN Global Compact

Director of Beijing Rongzhi Corporate Social Responsibility

Research Institute

Comments on “Sustainability Report of Tsingtao Brewery Co., Ltd. 2010”




Feedback of the Report

To the management team and employees of Tsingtao Brewery:

I don’t know whether you will read this letter or not.

But as a Tsingtao brewery overseas shareholder (Hong

Kong and Macao), I am deeply impressed with the

company’s culture of combining efforts of all employees

to make the company better through its products, its

financial report, and its social responsibility report. As

I see it, this is a very special corporate culture amongst

domestic companies.

In Macao, I can only taste the original Tsingtao beer

and even in Hong Kong, there are only two more

options: draft-beer and golden Tsingtao. By reading

the report I found that the company has developed

high-end products, so I went to the supermarket in

mainland China and bought a can of Augerta. Looking

at the white fine froth and continuous small bubbles

of Augerta I could feel the energy in it. I could taste

its heavy malt aroma and a burst of bitter and strong

hops aroma instead of the heavy alcohol taste found

in normal, German white beer. At that time I was

deeply moved. Tsingtao finally had made a significant

step towards the high-end products. I think if beer

has the rich taste as white beer does, it would be even

more wonderful. It is said that in Tsingtao Museum,

pure beer is offered. I hope I can have the chance to

visit Beer’s holy land. This is what I want to say as a

consumer and I hope I can buy Tsingtao’s the full line

of beer products.

I bought shares of Tsingtao Brewery recently. As a

valued investor I was moved by Mr. Jin Zhiguo’s

speech where he said cash flow for the enterprise is

just like the blood for the human body. Honestly, in

my point of view, Tsingtao Brewery is an excellent

enterprise. This is reflected on Tsingtao’s increasing

production capacity and purchasing other breweries.

Although the stock prices will go up on news of M&A

or increasing production capacity comes out in the

capital market. However, I think it is easier to become

bigger but difficult to become stronger. This is the

reason why I think other brewers are below Tsingtao

Brewery’s status. From Mr. Peng Zuoyi’s concept going

doing bigger to Mr. Jin Zhiguo’s idea of being stronger,

along with Tsingtao’s expansion and consolidation

strategy nowadays, it just confirms my recognition

that Tsingtao Brewery’s output may not be the biggest

but the asset management and profitability are much

better than other companies. So, I think what the

company is doing is the best in terms of returns for the

consumers and the stockholders. Tsingtao produces

beer with high-quality, but not beer made in a rough

and slipshod way, and utilizes assets effectively by not

focusing on numbers. I hope Tsingtao Brewery work

this way forever.

The company always operates steadily, and doesn't

waver and continuously tries to transcend itself.

In the company’s social responsibility report, we can see

how the company contributes greatly to shareholders

and consumers with the pursuit for being the best

in work and management. We can also see how the

company thinks a lot and takes action on sustainable

environmental development. So, I want to extend my

heartfelt respect to what Tsingtao Brewery has done.

By reading the report, I know that the employees in

Tsingtao Brewery are not like the employees in other

companies. They are the partners of the company.

Even the packaging workers have deep insight and

recommendations on how to save and improve and

their opinions will be listened and accepted by the

management. Because of this, I understand that not

only the management but also the junior professional

staff is making efforts and contributions for Tsingtao

Brewery. As the shareholder of the company I feel really

happy and pay sincere tribute to the staff of Tsingtao

Brewery.

I hope Tsingtao Brewery’s culture of “all the staff work

together to make great efforts for the company” will

continue. This culture accomplishes the magic of

Tsingtao Brewery. I want to express through the letter,

my respect and appreciation for the contributions

and efforts made by every staff member in Tsingtao

Brewery.

Finally I wish all staff of the company harmony and joy!

A consumer and shareholder in Macao

Sincerely yours,

Huang Runsheng



Your Feedback

Dear Readers,

Thank you for reading the 2010 Sustainability Report of Tsingtao Brewery. It would be our

pleasure to hear your opinions and suggestions. Please send your comments by mail, fax or email.

We are grateful for your valuable advice and comments!

What is your opinion to the report?

□Good □Average □Poor

· Readability of the Report □ □ □· Balanced Perspective □ □ □· Layout □ □ □

· Overall Impression □ □ □

Which chapter do you think provides you with the best information?

1 Opening Chapter □

2 “Good Quality” Part □

3 “Caring the Nature” Part □

4 “Contributing Love” Part □

5 “Harmony Among All” Part □

6 “Honors and Awards/ Third-party Evaluations” Part □

Name:

Telephone:

Affiliation:

E-mail:

What advice do you have for the 2011 Sustainability Report of Tsingtao Brewery?

If you have further comments about the

Report, please feel free to

contact us:

Address: Public Relations Management Department Tsingtao Beer Tower, May

Fourth SquareHong Kong Road Central, QingdaoShandong

Province

Postal Code: 266071

Tel: 0532-85785641Fax: 0532-85720051

Email: [email protected]






Appendix: Global Reporting Initiative (G3) Index

1 Strategy and analysis

1.1 Statement from the top decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.

P4-5

1.2 Description of key impacts, risks, and opportunities. P4-5

2 Organization profile

2.1 Name of the organization P6

2.2 Primary brands, products, and/or services. P6-7

2.3 Operational structure of the organization. P8

2.4 Location of organization’s headquarters. P37

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

P6-7

2.6 Nature of ownership and legal form P6

2.7 Market the organization serves P6-7

2.8 Scale of the reporting organization P6-7

2.9 Significant changes during the reporting period regarding size, structure, or ownership

--

2.10 Awards received in the reporting period. P33

3 Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year). —Back cover

3.2 Date of most recent previous report (if any). —Back cover

3.3 Reporting cycle (annual, biennial, etc.) —Back cover

3.4 Contact point for questions regarding the report or its contents. P37

3.5 Process for defining report content —Back cover

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

—Back cover

3.7 State any specific limitations on the scope or boundary of the report. —Back cover

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

—Back cover

3.9 Data measurement techniques and the bases of calculations. —Back cover

3.10 Explanation of the effect of any re-statements of information provided in earlier reports

---

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

---

3.12 Table identifying the location of the Standard Disclosures in the report. Identify the page numbers or web links.

P38-42

3.13 Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s).

---

No. Disclosure Items Page



4 Governance, Commitments, and Engagement

4.1 Governance structure of the organization , including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

P8

4.2 Indicate whether the Chair of the highest governance body is also an executive officer.

P8

4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/ or non-executive members.

P8

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

P8

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives

--

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

P9

4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees.

P8

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

P6/P9

4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance.

P8-9

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

P2-3

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.

P9

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

P22-25

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations.

---

4.14 List of stakeholder groups engaged by the organization. P9

4.15 Basis for identification and selection of stakeholders with whom to engage. P9

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

P9

4.17 17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

P9

5 Economic Performance Index

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

P2/P6

EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change.

P9

EC3 Coverage of the organization’s defined benefit plan obligations. P27-29

EC4 Significant financial assistance received from government. --

EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

P28

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

P30

EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation

--






EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement.

P22-25

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

P4-5/P30

6 Environmental Performance Index

EN1 Materials used by weight or volume. P14-15/P17

EN2 Percentage of materials used that are recycled input materials. P18

EN3 Direct energy consumption by primary energy source. P17

EN4 Indirect energy consumption by primary source. P17

EN5 Energy saved due to conservation and efficiency improvements. P17

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

P17

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. P17

EN8 Total water withdrawal by source. P15

EN9 Water sources significantly affected by withdrawal of water. P15-16

EN10 Percentage and total volume of water recycled and reused. P16

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

---

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

---

EN13 Habitats protected or restored. ---

EN14 Strategies, current acts, and future plans for managing impacts on biodiversity.

P15

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

---

EN16 Total direct and indirect greenhouse gas emissions by weight. P17-18

EN17 Other relevant indirect greenhouse gas emissions by weight. ---

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. P17-18

EN19 Emissions of ozone-depleting substances by weight. ---

EN20 NO, SO, and other significant air emissions by type and weight. P18

EN21 Total water discharge by quality and destination. P16

EN22 Total weight of waste by type and disposal method. P18

EN23 Total number and volume of significant spills. ---

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

---

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

P16

EN26 EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

P15-18

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

P19

EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.

---




EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

---

EN30 Total environmental protection expenditures and investments by type. P14

7 Social Responsibility Index

LA1 Total workforce by employment type, employment contract, and region, broken down by gender

P26

LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region.

---

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation.

P27-28

LA4 Percentage of employees covered by collective bargaining agreements. P27

LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.

P27

LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs.

P27

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region and by gender.

P27

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

P28

LA9 Health and safety topics covered in formal agreements with trade unions. P27

LA10 Average hours of training per year per employee by gender, and by employee category.

P28

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

P28

LA12 Percentage of employees receiving regular performance and career development reviews, by gender.

P28

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

P28-29

LA14 Ratio of basic salary of women to men by employee category, by significant locations of operation.

P28

8 Social Performance Index: Human Rights

HR1 Percentage and total number of significant investment agreements and contracts that includeclauses incorporating human rights concerns, or that have undergone human rights screening.

---

HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and acts taken.

P30

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

P29

HR4 Total number of incidents of discrimination and corrective acts taken. ---

HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and acts taken to support these rights.

---

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

---





HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

P27

HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

---

HR9 Total number of incidents of violations involving rights of indigenous people and acts taken.

---

9 Social Performance Index: Society

SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs.

P22-25

SO2 Percentage and total number of business units analyzed for risks related to corruption.

P9

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures.

P9

SO4 Acts taken in response to incidents of corruption. P9

SO5 Public policy positions and participation in public policy development and lobbying.

P21

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

P20

SO7 Total number of legal acts for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.

---

SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

---

10 Social Performance Index: Product Responsibility

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

P11-13

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

---

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

P11-13

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

---

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

P11-13

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

P21

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

---

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

---

PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.

---

Environmental protection measures of Tsingtao Brewery when publishing:

This report is printed on recycled paper which contains 75% waste components and passed ISO 14001 environment system certification.

sustainability 2010 development report€¦ · sustainable development indices of tsingtao brewery...

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