As a business, we are cognizant of the fact that sustainability does not only depend on our economic performance, but also on the way we manage our social and environmental impacts. At each stage of the value chain, we seek to maximize our positive impacts, creating value to our stakeholders while improving our own performance. For us, the two are inextricably linked, because our company's future success depends on our ability to positively contribute to society and the environment today.

There are six key focus areas of our Sustainability & Responsibility strategy that we manage across our value chain:
alcohol in society, socio-economic development, environment, water, governance and ethics, and our people.

Through this report on our progress, EABL continues to reaffirm its support and willingness to advance the Ten
Principles of the UN Global Compact through our Code of Conduct, Policies, Controls and Process across our entire
Supply Chain and with all our business partners.

Sincerely yours,

Andrew Cowan
Group Managing Director

In our workplaces and the communities in which we operate, we believe a serious commitment to respect human rights is fundamental to our way of business.

We recognise that we are responsible for the impact of our operations on our employees, on workers in our supply chain, on consumers of our products, and on the communities in which we operate.

Our human rights policy is also guided by the International Labour Organization’s Declaration on Fundamental Principles and Rights to Work. By doing so, we are dedicated to enriching the workplace.

Safe working environment
We undertake all reasonable and practical steps to ensure that the premises where our employees
operate are secure and provide a safe and hygienic working environment.

Respect for national sovereignty
In countries where human rights are compromised, we will take responsibility to ensure our business operations do not contribute directly or indirectly to human rights abuses.

Community
As a responsible corporate citizen, EABL has rights and responsibilities in society. We believe that by being
active and caring about the communities where we operate, we can best meet these social responsibilities
and contribute to positive change.

Anti-discrimination
In all aspects of employment, such as recruitment, compensation and benefits, training, promotion, transfer and termination, EABL treats individuals justly and in a non-discriminatory manner, solely according to their abilities to meet the requirements and standards of their role.

As with all other business commitments, we seek to make out human rights performance one of consistent improvements. To achieve this we will:
- Monitor and measure our own performance against our Code
- Systematically assess our performance against best practice to continually improve our aspirations and performance
- EABL is among 1 of the 12 companies in Kenya that have signed on to the World Empowerment Principles (WEPs). These principles are linked to what we are EABL are currently undertaking and take pride in.

With over 1,500 employees across our three business units and different functional areas in 6 East African countries (Burundi, Kenya, Rwanda, Tanzania and South Sudan), we want our people to feel excited and engaged about working with us. We are committed to investing in their success, for their benefit and that of our business.

We will not employ children under the age of 18. We will respect all relevant local employment laws with regard to working conditions, training and a duty of general care.

We have the responsibility of ensure that our employees are working in an environment that employees believe that their own values resonate well with those of the Company.

Valuing people
We do not make use of nor will we have partners who make use of any form of forced or compulsory labour. This includes any requirement to lodge' deposits' or identity papers. We also respect the right of employees to leave the company after giving reasonable notice.

Multi-year talent planning
We have developed a Multi-Year Talent Planning (MYTP) approach, strategically forecasting the talent capabilities in our people in order to drive growth.

Leadership and people development
We are committed to helping our people realize and reach their potential. We have created numerous training and development programs, but we also strongly believe that our leaders are key in creating the conditions for our people to succeed. Programs that have been put in place include:
- Amazing people manager
- Performance Management System style' Partners for Growth (P4G)
- A talent career charter

Talent Programmes
We take training, career development and performance management seriously so that our people can fulfill their potential. Our functional and career development training include:
- Global Graduate Programme
- Future Leaders Programme
- Accelerated Leadership Programme
- International Director's Programme

Employee Engagement
Our engagement strategy is focused on making the Company the best place to be for talented people. We are passionate about our consumers and want to be the best. We give each other freedom to succeed and value each and every person's contribution. We work hard so we can be proud of what we do and how we do it. These are the values that underpin our business guide of how we work.

Staff Welfare
Our staff welfare is key to our growth and we ensure we have a healthy workforce through our media benefit scheme and employee wellness program.

Valuing Diversity
We celebrate cultural and individual diversity-rely on it even -to create and energizing team culture and leadership reputation. We lead the way in empowering women in the workplace, market place and the community.

- Annual Value Survey results
- Successful Collective Bargain Agreements negotiations and agreements with the Union leadership team in all our business units.

Environmental sustainability is one of our corporate responsibility priorities and we have some ambitious targets – particularly for reducing the environmental impact of our manufacturing sites.

In particular, we are vigilant and committed to the prevention of pollution in all our activities which range from the agricultural, large scale storage, malting, brewing, beverage packaging, infrastructural expansion, utilities supply and all related support processes.

We have ensured that every aspect of our products’ lifecycle is sustainable, starting with the areas where we have the greatest impact. We have invested in all stages of our value chain; sourcing raw materials carefully, using less energy and water, working with our suppliers to use materials with the smallest environmental footprint, managing and recycling the waste we have produced and delivered our products in the most efficient way possible. Once our product reaches to our customers and consumers we encourage them to use and dispose the packages responsibly.

1. Employee Engagement
Our involvement in environment conservation involves employees, other corporate bodies, government bodies and the communities around these areas as well as the public at large.

2. Water and affluent management
We have invested in a seven-million-litre water treatment plant to ensure that the water flowing from the plant is safe. Each day, three million litres are treated to the highest standards. We commit to reducing water usage on sites (through process optimization, no water wastage)

3. Energy
Our packaging house has put in place measures that educate our people on areas that savings are done and along the production line, we have optimised heating and cooling.

4. Waste management
We annually set waste to landfill targets as we aim for ZERO WASTE TO LANDFILL.We aim to achieve continuous improvement in environmental performance, concentrating our efforts on areas of greatest impact at our manufacturing and distribution points. Our company’s stringent environmental policy ensures that all our facilities are challenged to keep improving their performance in these areas.

We often seek ways to improve efficiency in the way we use water, energy and raw materials.

By 2020:

- Reduction of our water consumption in our breweries by 10% by 2020
- Reduce energy consumption by 20%
- Reduce CO, emissions in production by 10%
- Decrease GHG emissions in direct operations by 40%

We do not tolerate any form of corruption, whether direct or indirect, by employees or by business partners who act on our behalf.

Our Code is underpinned by a number of global policies covering specific areas of our activities in more detail. We review our anti-corruption policy regime every year to ensure that we take account of any changes in our external environment, and we update them accordingly. We do not offer, give, or receive, bribes or other improper advantages for business gain.

1) Gifting and Entertainment Principles
All employees are required to declare gifts or entertainment given or received with our business partners in an online portal. Before offering any gifts or entertainments to government officials written pre-approval must be obtained from Legal.

2) Due diligence
Due diligence checks carried out on our employees and all our business partners through 'Know Your Customer' (KYC) and 'Know Your Business Partner' (KYBP). You cannot become a customer or vendor of EABL until you have gone through the KYC/KYBP process.

3) Statements of Authority and Approval Matrices
All business units and decision makers are subject to Statement of Authorities which defines who at what level can approve what amounts.

4) Whistle-blower line
The whistle-blower line is available via a toll free service, 24/7 to all our employees, contractors and business partners, and is hosted by a third party in the USA making it completely confidential. As an organization we also do not tolerate any retaliation.

5) Risk Management
As part of our risk management process we conduct a Compliance risk assessment of which Bribery & Corruption is identified as a risk. We have a mitigation plan to tackle this.

6) Breach Management and Communication
We have a comprehensive breach management framework for dealing with any cases of non-compliance from investigation to disciplinary process. We are transparent with actual breaches we share the consequences and learning from substantiated breaches with the wider business community at regular intervals.

7) Auditing
Diageo's Global Audit & Risk Team frequently audit our businesses to ensure we are complying with our Anti-Bribery & Corruption Policy.

- Code of Business Conduct- employees often undertake an e-learning on our Code that provides guidance on key areas of compliance and outlines our responsibilities.

- Pathway of Pride- A program that engages our people to participate in compliance and ethical discussions. The objective of the engagement is to encourage our people to build understanding of our Code and corporate governance principles so as to embed it in their daily activities.