Environmental sustainability is vital to Carlsberg Malaysia and we recognise that the actions we make today will affect the future.

It is our privilege to present Carlsberg Malaysia’s Corporate Social Responsibility (CSR) Report which highlights our achievements in 2012.

Carlsberg Malaysia continues to focus on integrating CSR throughout the entire value chain. This forms part of the Carlsberg Group Strategy Wheel under Society and Reputation. We made good progress and continued to deliver high quality products efficiently. We strive to conduct ethical and responsible business and insist on high standards in all areas from R&D and procurement, to marketing and helping our local communities. We continue to respond to the expectations of our various stakeholder groups.

At Carlsberg Malaysia, we believe stakeholder engagement is an integral part of CSR and achieving the triple bottom line. This is reflected in the continuous engagement with our stakeholders to balance social, environment and economic elements for a sustainable future. We engage with our diverse stakeholder groups to understand which issues matter to them the most.

Our employees are our most important asset, without which we could not operate. Our “Thirst for Great Hour” programme encourages all employees to participate in Great Moments that will help inculcate Carlsberg’s core values and culture. In 2012, the Company actively engaged with our employees and held six sessions of “Thirst for Great Hour” as opposed to the usual four. We also introduced quarterly Supply Chain Town Hall sessions to keep Supply Chain employees abreast with the latest developments in finance, safety and HR.

The safety of our employees is our number one priority in the workplace. In 2012, we launched our first Health and Safety Week featuring various activities to create awareness on occupational health and safety while educating employees on best practices. The Health and Safety Week will be held annually to promote the safety and wellbeing of our employees. We will also deliver many more safety-related training programmes for our employees and will continue to prioritise safety and health.

Environmental sustainability is vital to Carlsberg Malaysia and we recognise that the actions we make today will affect the future. In 2012, we have invested steadily in our environmental initiatives. Approximately RM2 million had been allocated to upgrade our facilities to include a new state of the art CO2 Recovery Plant. This will not only allow us to recover all CO2 released during fermentation making us self suffi cient with CO2, it will reduce our electricity consumption, effectively reducing our operating costs, GHG emissions and carbon footprint.

Previously, we were importing three beers: Asahi Super Dry, Kronenbourg 1664 and Kronenbourg 1664 Blanc. In 2012, we began brewing these beers locally. This ensures a much fresher product and being able to respond to supply and demand more effectively. It also allows us to source locally. This greatly reduces our carbon footprint and increases our spending with local suppliers.

At Carlsberg Malaysia, we have a strong Community CSR programme as part of our belief in “Sharing with the Community Unconditionally”. In 2012, our ‘Heart2Heart’ charity concert raised RM310,000 for 27 charitable homes, associations and schools. Our suppliers, trade partners and business partners participated in the charity concert and contribute to this good cause.

We believe in involving them in our CSR initiatives to create a caring community. We also continued to hold our Charity Concerts to support Education which raised approximately RM26 million for 17 schools nationwide. This year, we are pleased to personally partake in the KL Rat Race to support the nation’s pledge in helping the less fortunate.

Carlsberg Malaysia’s effort in sharing with the community unconditionally was recognised formally on 28 May 2012 as the “Best CSR Programme” among public listed companies at The Edge Billion Ringgit Club (BRC) Awards. This inaugural award is a strong testament to Carlsberg Malaysia for its year-long commitment and dedication in the development of education, sports and philanthropy. Our strong marketplace initiatives and effective supply chain management are instrumental to our success. Our brewery visits continue to allow us to showcase our products, demonstrate our commitment to the highest quality standards and educate our visitors on the brewing techniques and enhance their knowledge. Educating these stakeholders helps them assist us in delivering the best possible product to our customers.

Moving Forward

Carlsberg Malaysia has set its sights on delivering sustainable growth and has made good progress towards this goal. We are pleased with our progress in 2012. We are currently in the process of creating a supplier CSR assessment. We hope that this will encourage the adoption of good CSR practices throughout our value chain. Maintaining closer relationships with our suppliers will enable us to create value together for a more sustainable future.

The energy audit we commissioned during the year uncovered some potential inefficiencies in our operations. Some of the recommendations have been implemented while others require budget and planning. We will continue to implement these initiatives to ensure our energy consumption is as low as possible to protect the environment and reduce our costs. Main focus in 2013 will be upgrading our cooling plant, which is currently our biggest consumer of electricity, to become more electricity efficient.

We are continuously improving our health and safety processes. Many initiatives have helped our safety processes including the Kaizen programme. In 2013, we aim to include “near miss” accidents into our reporting processes. We hope that this will help prevent accidents and create an even safer workplace for our employees.

Our “Drink Responsibly” campaign is ongoing and an important part of our marketplace initiatives. In 2012, we have recruited several employees as “Drink Responsibly Ambassadors” to share the knowledge of responsible drinking with our consumers. Going forward, we will allocate more resources and increase our focus in this area.

We will continue to work closely with various stakeholders to bring more value and integrate CSR throughout the value chain. We hope that by doing so, we will bring CSR to all of our stakeholders.