Phoenix Beverages 2022 Integrated Report

REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER NATURAL NATURAL CAPITAL We are committed to contributing towards a sustainable future for our islands by understanding the growing issues and impact that resources can have on the environment. This includes responsible management of our impact on natural resources and participating in collaborative solutions to address environmental challenges. Our strategic focus on achieving world-class execution means that we continually seek to optimise manufacturing processes, improving water and energy use efficiency and reducing waste and emissions. • PhoenixEarth officially launched in December 2021 • Installed solar system to preheat water feeding the chillers bringing down grid electrical energy used as the Limonaderie • Rainwater harvesting system installed at Nouvelle-France • Partnerships to reuse and recycle waste • Further solar PV installations planned • Improve facilities at our operations to increase efficiency, productivity and employee well-being. • Provide a safe and accident-free workplace • Set up engagement tools to boost team members’ morale • Implement systems to support safe working conditions during Covid-19 • Rainwater harvesting projects are being investigated • Improve primary packaging collection • Installation of further solar energy system Natural capital inputs Capital outcomes in 2022 Preserving and sustaining value SDG targets • 818 210 m3 of water withdrawn • 1 251 tonnes of post-consumer PET collected • 172 342 GJ of energy consumed • Sugar, hops, malt, fruit pulp and CO2 • Expansion of PhoenixEarth as our sustainability hub • 160 kWh of solar PV installed at the Limonaderie • 1 535 m3 of capacity added to harvest rainwater • 230 tonnes of ash and 836 tonnes of glass waste diverted from landfill Environmental management Water, energy and waste management are our priority operational environmental focus areas. Although we have identified SDG 13 (Climate Action) as our primary environmental SDG, water (SDGs 6 and 14), energy (SDG 7) and life on land (SDG 15) are directly linked to environmental responsibility and contribute to SDG 13. Harvested rainwater is used for washing delivery vehicles at the garage at Phoenix and another rainwater harvesting system was installed at Nouvelle France during the year that will reduce water withdrawal from aquifers by an estimated 3 600 m3 a year. Further rainwater harvesting projects are being investigated at other sites. The Top 10 Water Tools initiative provides an internal checklist of critical issues in sustainable water management and improving water efficiency. PhoenixEarth was officially launched in December 2021 and represents the sustainability pole of PhoenixBev Group. The initiative aims to raise awareness of sustainability and environmental concerns, both within the Company and in broader society. Internally, various projects aim to deepen the sustainability culture in the Group and ensure that all team members and planned projects consider our chosen SDGs and the broader ESG impacts of our activities. We are finalising a long-term sustainability strategy and as part of the process conducted awareness sessions with senior management and employees to emphasise the importance of sustainability to the Group and to get them to contribute and commit to our sustainability vision. Environmental management systems are in place at all facilities aligned with ISO 14001, the international environmental management system standard. The Limonaderie, Nouvelle France and Edena units are certified in terms of ISO 14001 and the brewery facility is preparing for ISO 14001 certification. Water usage and management PhoenixBev is conscious of the importance of water and using it responsibly. Without water, the fruit, hops, barley, sugar and other natural ingredients we use to make our beverages cannot grow. Water is also used in the production process to clean and sanitise bottles and equipment, and interruptions to water supply could stop production. As an essential ingredient of beverages, water quality directly affects the taste and quality of our products. Water is drawn mainly from local aquifers and on-site water storage tanks reduce the risk of supply interruptions. We constantly monitor the abstraction rate, water quality and ground water recharge. As part of the operating requirements of The Coca-Cola Company (KORE), we carry out in-depth quantitative and qualitative water source vulnerability assessments (SVAs) every five years, which includes updating the source water protection plan. Capital investments to improve production efficiencies also improve the efficiency with which we use water and energy. Reducing plastic pollution and waste Plastic pollution has aesthetic and broader impacts, significantly affects water and sea-life, and is recognised globally as one of the most significant environmental issues. The natural beauty of island nations such as Mauritius and Réunion is a significant asset and tourism is a key driver of GDP and job creation. Playing a part in preventing pollution is therefore not only ethical business, it also supports future financial returns by ensuring growth in the tourism industry. Litter and packaging waste can also affect our corporate reputation when packaging from our products is not disposed of responsibly by consumers. PhoenixBev is committed to playing a leading role in finding solutions to plastic pollution and waste, and we engage with the authorities on an ongoing basis in this regard. The government of Mauritius is taking steps to reduce plastic waste and pollution, with a particular focus on PET waste. As a packaging material, plastic is easily recyclable, has a lower carbon footprint than other packaging materials such as glass bottles and can be highly sustainable when included in a circular economy. Our focus is on reducing the amount of plastic waste while raising consumer awareness and supporting projects that promote a circular economy to reduce littering and the amount of plastic waste that ends up in waterways and the ocean. 67 66 Phoenix Beverages Limited Integrated Report 2022 Phoenix Beverages Limited Integrated Report 2022

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