E N V I R O N M E N TA L , S O C I A L
A N D G O V E R N A N C E ( E S G) R E P O R T 2 02 1

MOLSON COORS ESG REPORT 2021

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Contents

ABOUT THIS REPORT3

O UR FOUNDATIONAL
COMMITMENTS

CEO LETTER

4

ALCOHOL RESPONSIBILITY

31

PROMOTING RESPONSIBLE CONSUMPTION

31

INTRODUCTIONABOUT MOLSON COORS
BEVERAGE COMPANY
LIVING OUR VALUESSUPPORTING THE SUSTAINABLE
DEVELOPMENT GOALS

85SUPPORTING CONSUMER CHOICES

32

6ADVOCATING FOR SOCIETAL PROGRESS

34

SOCIAL

36

7

10

OUR
REFRESHEDSTRATEGYOURIMPRINTGOALSPEOPLE

11

12

OUR PEOPLE
IMPRINTWATERIMPRINTHELPING COMMUNITIES IN A DIFFICULT YEAR36

DEVELOPING OUR PEOPLE

38

ENGAGING OUR EMPLOYEES39

PROMOTING EMPLOYEE WELL-BEING40

ENSURING WORKPLACE HEALTH AND SAFETY

41

SAFEGUARDING HUMAN RIGHTS

41

MAINTAINING AN ETHICAL SUPPLY CHAIN

42

GOVERNANCE43

UPHOLDING ETHICS AND INTEGRITY 43

OVERSEEING OUR SUSTAINABILITY EFFORTS

44

ALIGNING REMUNERATION WITH ESG

44

MANAGING ENTERPRISE RISKS45

ENSURING RESPONSIBLE PUBLIC POLICY46

DEVELOPING A TRANSPARENT TAX STRATEGY 46

PL ANET

17

30

16

22

CLIMATEIMPRINT

26

PACKAGINGIMPRINT

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MOLSON COORS ESG REPORT 2021

INTRODUCTION

About This Report
Welcome to our Environmental, Social andGovernance (ESG) Report 2021. This reporthighlights the progress we have made in 2020
against Molson Coors’ most material ESG issues.
It demonstrates our commitment to internationalframeworks, such as the Global Reporting Initiative(GRI) Standards. We also align efforts with the CEO
Water Mandate, the Principles of the United Nations
Global Compact (UNGC) and the UN Sustainable
Development Goals (SDGs).

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INDICESThe scope of our 2020 reporting encompasses Molson Coors
Beverage Company’s (Molson Coors) direct operations across
two primary business units: North America and Europe. Dataand metrics included in this report cover global activities andperformance in the fiscal year from January 1 to December 31, 2020.
Unless otherwise noted, the 2025 goals discussed in this report havebeen set against a 2016 baseline that incorporates the performanceof our global business.
We report annually on our sustainability progress. Our sustainability
reporting has been prepared in reference to the GRI Standards.
This report also serves as our Communication on Progress (CoP)
for our commitment to the UNGC and CEO Water Mandate. The GRI
Index, the UNGC CoP Index, the Sustainable Accounting Standards
Board (SASB) index and the Task Force on Climate-related Financial
Disclosures (TCFD) table can all be found at the back of this report.
Our contribution to the UN SDGs can be found in our SDGs Impact
Report 2021. Corporate Citizenship has assured data related to ourabsolute water, energy and carbon, waste, health and safety, andenvironmental compliance metrics in accordance with ISAE 3000.
Please see the Assurance Statement for details.

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The Next Phaseof Our ImprintBY GAVIN HAT TERSLEY, CEO
The past year has been tremendously challenging for
all of us. Around the world, communities are copingwith the impacts of coronavirus, and systemic racism istaking its toll. These challenges have only strengthened
our commitment to our people and our communities,
prioritizing the health, safety and well‑being of ouremployees, and evolving how we lend a hand to help
our neighbors when they need it the most.
More than ever, we need a robust approach to address the socialand environmental challenges facing the world. This is what guided
us in 2017 to set ambitious sustainability targets for 2025, and it’swhat inspired us to refresh our strategy in 2020. Our streamlined
plan focuses on two areas, people and planet, with targets toadvance diverse representation, foster an inclusive culture, reducecarbon emissions and water use, and transform our packaging.
Three foundational commitments – alcohol responsibility, social andgovernance – ensure we uphold ethical and responsible standards as
we work to achieve our goals.
We’re proud of our progress to date.

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People. We’re committed to making diversity, equity and inclusion (DEI)
part of the fabric of our culture. Over the past year we’ve accelerated
our efforts, including setting a goal to increase representation ofpeople of color in our US workforce by the end of 2023. We also
doubled annual investments in our hometown communities, including
supporting 25 organizations committed to tackling social injustice. And
to provide opportunities for emerging diverse talent in our industry, ourTenth and Blake craft beer division launched a scholarship programfor people of color and LGBTQ+ students pursuing degrees in brewing
and fermentation sciences.
Planet. Our environmental efforts have been consolidated into thethree areas we believe we can have the greatest impact on: water,
climate and packaging. In the UK, we are the first major UK brewer totransition to 100% green electricity, meeting our UK emissions reduction
goal four years early. And we’ve transformed our packaging in the UK,
replacing plastic rings with cardboard alternatives for major brands.
In Golden, Colorado, we kicked off our multi-year renovation project,
G150, that will significantly reduce emissions, as well as energy andwater use at the iconic brewery. And to date, 98% of construction
materials have been recycled or reused.
Though we’ve made important progress under our people and planet
pillars, this is only the beginning of the next chapter in our sustainability
journey. As we look to the future of Molson Coors, Our Imprint strategy
will keep environmental and social considerations at the forefront of
everything we do.
I’m inspired by how our people pulled together during 2020 to support
each other, our partners and our communities, and lay the foundation
for a more sustainable, responsible and resilient company. I lookforward to brighter days as we build back even stronger and continue
uniting people to celebrate all life’s moments.

I’M INSPIRED BY HOWOUR PEOPLE PULLEDTOGETHER DURING 2020
TO SUPPORT EACH OTHER,
OUR PARTNERS AND OUR
COMMUNITIES, AND LAY
THE FOUNDATION FOR
A MORE SUSTAINABLE,RESPONSIBLE AND
RESILIENT COMPANY.

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About Molson Coors
Beverage Company
With a story that stretches back nearly 250 years,
we’ve spent centuries perfecting our techniques andbrewing beers that stand the test of time. When we
became Molson Coors Beverage Company in 2020,
it marked the beginning of a new chapter for ourorganization. Our company history is rooted in beer, but
we are dedicated to expanding our portfolio, offering
beverages from sparkling cocktails to energy drinks so
we can be part of more of life’s moments.

KEY
Regional HQ
Large Breweries*

5thlargest beer company
in the world+17,000
employees~100

countries where
our products are sold* Molson Coors’ Indian breweries were sold in early 2021, and will no longer be included in reporting starting next year.

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Living Our Values
We refocused our values to drive theculture we want to create. Our values guide
everything we do, from how we show up for our
employees in times of need to how we operate
as a corporate citizen in our communities.

PUT PEOPLE FIRST
We value and respect differences and believe
diversity with inclusion is the key to collaboration
and a winning team culture.

BE BOLD AND DECISIVE
We are innovators, unafraid to be direct, movewith speed and challenge the status quo.

TAKE ACCOUNTABILIT Y
We act with integrity and honor commitments,
while owning our mistakes, using them as anopportunity to learn.

LEARN EVERY DAY
We are always looking for ways to improve and tohelp one another grow.

CELEBRATE TOGETHER
We are passionate ambassadors of our brands andour business; and we believe in the importance ofrecognizing and celebrating our accomplishments.

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Supporting the
Sustainable
Development
Goals

Goal 3
Good Healthand Well-Being

In 2015, two years before we set out
on Our Imprint journey, the United
Nations developed 17 global goals forsustainable development to make theworld a better place for both people
and the environment.

Goal 6
Clean Waterand Sanitation

We have aligned our sustainability targets with
the nine UN SDGs most relevant to our businessand our sustainability efforts:

Goal 2
Zero Hunger

Goal 5
Gender Equality

Goal 7
Affordable andClean Energy
Goal 8Decent Work andEconomic Growth

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Goal 12
Responsible
Consumption and
Production
Goal 13
Climate Action
Goal 17
Partnershipfor the Goals

Learn more about how
we are contributing to
the UN SDGs in our 2021
Sustainable Development
Goals Impact Report

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INDICESOur Refreshed Strategy
ENGAGING OUR KEY STAKEHOLDERS
ESG issues impact how we operate as a business. ESG
also influences the impact Molson Coors can have on oursociety and our planet. By maintaining a dialogue with our
employees, consumers, investors, suppliers, communities
and government bodies, we can gain a clearer image of whatissues matter most to them and what is expected of us asa corporate citizen. Our ongoing stakeholder engagement
strategy supports the evolution of Our Imprint strategy. Our
open and ongoing engagement will remain important as
we progress toward our more focused strategic areas andcontinue to identify key emerging trends.

EMPLOYEESCONSUMERS AND CUSTOMERSINVESTORSOur people-first culture places our
employees at the heart of how we operate.
Engaging our employees, through surveys
during the onboarding process andthroughout the employee journey, gives
us valuable insight into how we candevelop our company culture to ensure ourpeople feel supported and able to thrive at
Molson Coors.

Understanding evolving consumer tastes
and trends is crucial to business success.
We maintain continual dialogue with ourconsumers through market insight andconsumer research to inform productdevelopments and ensure we are always
creating great-tasting beverages thatpeople love. We also engage with our
distributors and retailers via dedicateddistributor councils and discussions. These
communications give us insight into theneeds of our distribution system and how
we can better serve customers.

We have a responsibility to transparently
communicate our progress to shareholders
so they can accurately assess the valueof their investment. We share businessand financial updates with our investors
through quarterly and annual reporting,earnings calls, shareholder meetingsand investor conferences, as wellas maintaining a dedicated investor
webpage.

SUPPLIERSCOMMUNITIESGOVERNMENT BODIES

Maintaining strong partnerships with our
suppliers is foundational to our ability
to produce high-quality beverages. For
instance, our Molson Coors agronomists
work directly with barley growers, visiting
them regularly to develop mutually
beneficial sourcing programs that increase
both the sustainability and productivity ofcrops. Our packaging team collaborates
with our top packaging suppliers to reducegreenhouse gas emissions across ourglobal value chain.

We have operations across the globe andwant to ensure we’re good neighbors to thecommunities where we have a presence. We
have local Community Affairs ambassadorsthat operate in each of our key markets,
helping to build relationships with key local
stakeholders and nonprofit organizations.
Our ongoing engagement helps us to
tailor how we can best support our local
communities, and uplift the people andnatural spaces that surround our facilities.

Complying with local, national andinternational regulations is critical to ourright to operate our business. Maintaining
connections with governmentalorganizations and regulatory bodies
ensures we are always aware ofchanging policies. At the same time, this
dialogue allows us to share our views
with decision-makers and provides anopportunity to influence the direction of
evolving protocols.

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INDICESOUR REFRESHED
FOCUS AREAS
We want to harness our capabilities
to have the biggest positive impact
possible. As we continue to implement
our revitalization plan, we are
streamlining our resources and efforts
to focus on what we have identified as
our four most salient ESG issues across
two key pillars: People and Planet.

OUR PEOPLE IMPRINT

OUR WATER IMPRINT

People are the heart of Molson
Coors. We strive to create aculture where people always feel
comfortable bringing their diverse
perspectives and experiences tothe table. As a global company,
we also have a responsibility tonurture a workforce that reflects
our local communities. We believe
this makes us a better employer,
partner and company of choicefor our consumers and customers,
and it’s why we’re committed tochampioning diversity, equity
and inclusion (DEI) in all we do.

We use water in every phaseof our brewing process – from
our agriculture supply chain toour bottling lines. We have a
responsibility to lead industry water
stewardship efforts, including
reducing water use in our facilities
and partnering to protect waterstressed sources in our brewery
and farming communities. We
are also working closely with our
growers to promote regenerative
agriculture techniques that
preserve water and safeguard
farms for the future.

OUR CLIMATE IMPRINTOUR PACK AGINGIMPRINT

Climate change is one of the mostpressing global challenges of
our lifetime and we believe ourindustry has a crucial role to playin mitigating the impacts of climatechange. At Molson Coors, weunderstand that we must do
our part by decarbonizing
operations and building a more
resilient and responsive businessfor the long term.

Globally, natural resources arebeing used up faster than everbefore. To keep more material
out of landfills and in the circular
economy, we are developing
increasingly innovative solutions
with smaller environmental
footprints. This means designingwith circularity in mind and joining
forces with others to push for more
effective recycling solutions.

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Our Imprint Goals
We are committed to responsible business, weaving ESG considerations into
everything we do. In 2017, we set ambitious sustainability goals based on arobust materiality assessment, giving ourselves a deadline of 2025. In 2020,
we consolidated these targets, narrowing our focus onto the areas where webelieve we can make the greatest contribution and also added a new People
target to increase diverse representation in our company by 2023 as further
discussed below. Now we are going even further, targeting the areas where
the scope for positive impact is greatest: People and Planet.
Four focus areas, along with a set of corresponding goals, will help us target our efforts
and progress.1,2PeopleFocus Area

DIVERSIT Y,
EQUIT Y AND
INCLUSIONESG Goals

Our Progress to Date

Making DEI part of everything we do – from how we work
together to how we grow our company•	People of color represent 26.3%
of our US workforce•	Women represent 24.6% of our
North American workforce•	Spent 4.9% of our addressable
spend with diverse suppliers inNorth America•	Set in place three-year DEI
Roadmap and action plan•	By 2023, increase people of color representation in the US
by 25%*•	By 2023, achieve $1 billion of spend with diverse suppliersin North America•	By 2023, improve representation of women on an
enterprise-wide level*

Protecting precious water resources by doing more with less

WATER

• Make our products with 22% less water hl/hl•	Improve water availability in our water-stressed brewerywatersheds and restore 3.5 billion gallons of water• Grow our barley with 10% less water

Leaving a smaller carbon footprint at every step of thevalue chain

CLIMATE• Reduce carbon emissions by 50% in our direct operations• Decrease carbon emissions by 20% across our value chain

PlanetReducing packaging and innovating for a morecircular economy

PACK AGING•	Ensure our packaging is 100% reusable, recyclable andcompostable, and consumer-facing plastic packaging is
made from at least 30% recycled content• Achieve zero waste to landfill at 100% of our operations* This goal will apply in areas where market availability shows we have room for improvement. In all cases, we will hire and promote themost qualified candidates to ensure we are setting up our employees for success.
1

People target is set against a 2020 baseline.

2 Progress for our water, climate and packaging targets is set against a 2016 baseline.

•	Reduced water use in our
breweries by 5.87%•	Restored 2.6 billion+
gallons of water•	Reduced water used to
grow barley by 10.9%•	Reduced carbon emissions by:–2
 4.1% in our direct operations– 22.5%in our value chain•	99.3% of packaging is reusable,
recyclable and compostable• 17 facilities are zero waste to landfill•	6.1% of consumer-facing plastic
packaging contain at least 30%
recycled content

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INDICESPEOPLE
Our employees are the beating heart ofour business and we recognize that our
success is built on their efforts. That’s why
we’re deeply committed to putting ourpeople first, creating a culture where they
can bring their whole selves to work andhelping them reach their full potential.

In addition, our value chain is driven
by people from varying backgrounds
and diverse perspectives. We want tohelp build a more equitable society that
supports opportunities for all – from theproducers growing the ingredients forour beverages to the consumers enjoying
them, and the communities that form the
backbone of our home and work lives.

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Our People Imprint
Diverse thinking is key to building a future-fit business.
Our workforce and our wider value chain should reflect
the breadth of the communities where we operate andthe consumers who enjoy our beverages. It’s why wework every day to build a more inclusive culture thatencourages, supports and celebrates the many voices
and experiences of our people.

INDICES

Committed to new DEI goals
in 2020, including a three-yearroadmap and action plan

What
We Didin 2020

Established our 2020 baseline
with people of color representing
26.3% of our US workforce andwomen representing 24.6% of our
North American workforce

Invested 4.9% of ouraddressable spend
with diverse suppliers inNorth America

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ADVANCING DEI AT MOLSONCOORS AND BEYOND
We believe DEI should be embedded deeply in our culture and how we
operate, from how we work together to how we grow as a company.
In 2020, we created a 2021–2023 DEI Roadmap for our North America
business unit, informed by an assessment of our existing culture,
programs and talent management processes. Over 5,000 employees,
20 Molson Coors executives and senior leaders, and 21 focus groups
helped us identify our strengths and opportunities for improvement.
Using this feedback, we have set a series of commitments to target
our efforts toward 2023. They will help Molson Coors celebrate andsupport DEI in:• Our workplaces• Our supply chain• Our communities

IN OUR WORKPL ACES

Our 2023 commitment

We aim to increase representation of women and achieve a
25% increase in representation of people of color in the US.
We are dedicated to building a more diverse workforce. By 2023, we
aim to increase representation of women to be reflective of the market
and achieve a 25% increase in representation of people of color in the
US.* In Western Europe, we continue to track our progress to increase
gender parity through an annual gender pay gap report. In 2020,
we increased female representation at Western Europe Regional
Executive level to 36% and at senior management level to 31%.
In 2020, we launched a Week of Inclusion bringing together our North
American employees to focus on prioritizing inclusion, equity andworkplace respect. Across five days, employees attended a variety ofpresentations, interactive sessions and fireside chats with leaders andexternal experts. The week centered around each of our five values
and was designed to be a conversation starter, facilitating discussionsof difficult topics. In 2021, we are transitioning to an entire Inclusion
Awareness Month as we continue this journey.
With diverse employees come diverse ideas, and we want to ensure ourpeople feel supported to voice their opinions in a safe and receptive
environment. Our Employee Resource Groups (ERGs) are voluntary,
employee-led groups that aim to foster a diverse, inclusive workplacealigned with our values and culture. They strive to help raise culturalawareness and develop empathy for our different backgrounds,
experiences and perspectives. We also rely on our ERGs to help
activate our DEI strategy through community building and creating aculture of allyship. The ERGs host monthly Inclusion in Action events on
several topics to build knowledge, broaden perspectives and develop
meaningful understanding of various viewpoints.

* This goal will apply in areas where market availability shows we have room for
improvement. In all cases, we will hire and promote the most qualified candidates toensure we are setting up our employees for success.

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CASE STUDYWOMEN’S HISTORY MONTH 2021
One of our North America ERGs, Building Relationships &Empowering Women (BREW), which is open to all our North
American employees, exists to support the development of womenin our workforce. We are proud to be a diverse business, andnetworks such as BREW are key to empowering and nurturing
female career advancement.
In March 2021, BREW celebrated Women’s History Month and its
theme of #ChooseToChallenge, with a series of events throughout
the month. They covered a range of important topics, from how to
overcome one’s inner critic and elevate self-worth to challenging
our initial perceptions of one another and finding new ways tosupport diverse colleagues.
In our European business unit, we marked International Women’sDay 2021 with the first meeting of the Women Network Group.
Over 300 employees came together to listen, contribute to
discussions and share their own success stories. This inaugural
meeting marked the start of what we hope will be regular
networking sessions to help women create meaningfulconnections, have their voices heard and gain more recognition
from leadership.
For 2023, we aim to increase representation of women at
Molson Coors, helping our organization break down potential
barriers to career progression and elevate visibility amongleadership. Programs like BREW and the Women Network Groupare critical to getting us there.

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INDICES14IN OUR SUPPLY CHAIN

Our 2023 commitment

We aim to achieve $1 billion of spend with diverse suppliers inNorth America.

We believe building a diverse supply chain is as important as
developing an inclusive workforce. That’s why we actively engage
with women-owned and minority-owned businesses to expand our
supplier base.
Our total spend with women-owned and minority-owned small
businesses is formally incorporated into our quarterly procurementscorecards, with oversight from leadership. In 2020, we spent nearly$238.89 million with diverse suppliers, and we have spent over
$1.9 billion cumulatively since 2016.
We will continue to expand our supplier diversity program outsideof the US. In a few years, we plan to broaden the program toencompass Canada and the UK. We aim to ramp up our spending
with diverse suppliers in the next three years, achieving $1 billion of
spend in North America between 2021 and 2023.

CASE STUDYTEAMING UP WITH THE L A SPARKS IN
A FIRST-OF-ITS-KIND PARTNERSHIP
Molson Coors announced a first-of-its-kind partnership, teaming
up with the Women’s National Basketball Association’s (WNBA) Los
Angeles Sparks in an all-encompassing beverage deal startingin 2021. The sponsorship, the first of its kind for a professional
women’s sports team, will see Molson Coors serve its products at
the STAPLES Center, the home arena of the LA Sparks. We will also
incorporate Sparks branding into marketing in southern California
retail spaces.
The partnership presents an exciting opportunity for Molson Coors– not only to introduce our portfolio to a new market of young, legal
drinking age, passionate sports fans but also to raise the visibility
for professional women’s sports teams, setting an example forthe industry.
We are proud to work with a diverse range of partners,
collaborating on mutually beneficial projects. This latest deal with
the LA Sparks marks the next step in our journey to promote anduphold DEI throughout our value chain.
“We’re excited that Molson Coors is stepping up to make an
investment in a women’s professional sports team. It speaks volumes
that one of the world’s largest brands recognizes the impactof the LA Sparks and the WNBA, and wants to partner with ourorganization to be a changemaker in the sports sponsorship space.”

Natalie White, Interim President and COO, LA Sparks

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INDICES15IN OUR COMMUNITIESWith operations across the globe, we live and work in a range of diverse
communities. We want to be a good neighbor, offering support that
uplifts the people around us.
Our aim is not only to celebrate the variety of voices and experiencesof our employees but also to engage externally and invest in the richdiversity of the communities where we operate. We are committed toworking together for a better, more inclusive future.

CASE STUDYCRAFTING A MORE INCLUSIVE BEER INDUSTRY
Today, over 7,500 craft breweries are in operation across the US,
employing more than 161,000 people. However, while craft beer isa booming industry, it is lagging in terms of diversity, with African
American/Black people making up only 1% of craft breweryowners and less than 1% of brewers.

CASE STUDY
BUILDING A MORE EQUITABLE AND JUSTSOCIET Y FOR ALL
In 2020, we launched Project Justice – our initiative to donate$1.5 million to nonprofit organizations focused on advancing
equity, empowerment, justice and community building for the
African American/Black community.
The funding is divided between 26 local and national organizations,in consultation with our ERGs. It is being used to establish small
business grants, community revitalization projects, diverse student
scholarships, support for entrepreneurs and education on thehistory of racial justice.
One example of a partnership that gives us great pride is with the
African American Chamber of Commerce of Wisconsin (AACCWI).
Supported by an investment from Molson Coors, in early 2021 theAACCWI announced the opening of its Legacy Center. Nestled in
the heart of Milwaukee’s Bronzeville neighborhood, the center
will serve as a co-working space, offering local entrepreneurs anaffordable space to partner for innovation and sustainability.
Seeing the impact we achieved in the first year of our partnershipwith these organizations, we are committing another $1.5 million
in 2021. These contributions enable us to be part of the solution tocreating racial equality and building a more just society for all.

Identifying an opportunity to address this gap, President of
Terrapin Beer Company Dustin Watts and his colleagues reached
out to Middle Tennessee State University to establish a scholarshipfor underrepresented students in the Fermentation Science
program. Similar programs have also been developed by Tenth &Blake – our craft beer division – with partnerships between HopValley and Oregon State University, and AC Golden and Colorado
State University.
Through the Tenth & Blake Brewing Education Scholarship Fund,minority students can apply for a scholarship worth up to $10,000
to support studies in brewing or fermentation sciences. Recipients
will also be offered a full-time, paid partnership between theirjunior and senior years at a local Tenth & Blake brewery.
Higher education has the power to unlock doors, and we aresupporting more members of underrepresented groups toaccess this vital resource. The opportunities offered throughthese scholarships are one step in our journey to crafting a more
inclusive culture in our company, our industry and beyond.

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INDICESPLANET
Our success as a business is closely tied
to the health of our planet. We want toleave a positive legacy and know that, inorder to do so, we must put environmental
protection at the heart of our strategy.
Addressing climate risks and identifying
opportunities to reduce our environmental
impact – from increasing water-use
efficiency to innovating sustainable
packaging – feed into how we thrive asa business, both now and in the future.

We challenge ourselves to be efficientusers of resources in our own operations,but our commitment efforts do not stopat the walls of Molson Coors. By working
with our suppliers and partners, we’re
reducing our collective footprint so we
can leave a positive imprint on our planetand society, together.

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Water Imprint
Water is used at nearly every stage of our operations,from watering crop fields to pasteurizing our bottles.
We strive to use this resource as efficiently as possible,
especially in high-stressed watersheds where water
scarcity and limited access are exacerbated by the
impacts of climate change. As we look to 2025 andbeyond, we will continue leading efforts to takeaccountability and protect this precious resource – inour direct operations and across our entire value chain.

OUR APPROACH
As one of the world’s largest brewers, we believe we should leave apositive imprint on freshwater resources around the world. We havea long history of water stewardship and strive to be a part of the
global solution, reducing water use in both our direct operations andthroughout our supply chain.
Our strategy leverages a global network of experts who share insights
on effective water stewardship methods. We operate some of our mostwater-efficient breweries in our North America business unit, and ourteams from these facilities share insights internally to bring others up to
the same standards. We also partner externally with key stakeholders
to address local community needs, and engage in national and global
dialogues to promote effective policies and stewardship.

What
We Didin 2020

INDICES

Restored nearly
530 million gallons
of water in our highstressed watersheds
in California,
Colorado and Texas,bringing the total
restoration to date toover 2.6 billion gallons

Achieved a
5.87% reduction
in water-to-beer
ratio since2016, reaching
3.37 hl/hl to date.
This is equivalent to4.24 billion gallons
of water saved.

99.9% of our barley
farmers and 36.8%
of our global hops
farmers recognize
our sustainability
standards

Improved
water-use
efficiency in ourbarley supply chain
by 10.9% since 201617

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WATER STEWARDSHIP IN
OUR DIRECT OPERATIONSOUR GOAL
Our performance is measured by the intensity of waterused per unit of beer produced. We have set a 2025
target to improve water-use efficiency in our large
breweries by 22% from a 2016 baseline to achieve a
2.8 hl/hl water-to-beer ratio.
OUR STRATEGY
We target water savings through training our people and improving
our processes. We have implemented our World Class Supply Chain(WCSC) program in all our large breweries, enabling our people
to better track performance, drive improvements and, ultimately,
improve operational efficiency.
Complementing WCSC, members of our cross-functional, crossbrewery FEWER (Fuel Energy Water Emissions Reduction) teammeet regularly to identify areas for water-efficiency improvements
and review gaps in performance. Supported by our Supply Chain
Leadership Team, FEWER team members play an important role insharing new and best practices across the Molson Coors network.
They also act as sustainability advocates, supporting employees
to make more informed decisions about effective water use andencouraging each brewery member to achieve resource savings intheir day-to-day activities.
We are also investing strategically in developing more efficientsystems, such as tertiary water reuse systems, to help reduce water
consumption in many of our US breweries. In our Fort Worth, Texas
brewery, for example, we are exploring how we can preserve potablewater supplies and increase circularity by reclaiming and reusing
water in our brewery processes.

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INDICESOUR PROGRESSIn 2020, thanks to cross-operational efforts, we reduced global water
use by 3% to reach a water-to-beer ratio of 3.37 hl/hl versus 3.41 hl/hl
the previous year. This progress was achieved through the developmentof several processes and features, including:• Milwaukee, WI: Water reduction of 8.2% achieved through optimizationof clean-in-place processes, including improving pipe design for easiercleaning and reduced detergent use for easier rinsing• Fort Worth, TX: Optimization of the pasteurization process to use
water and energy more efficiently without impacting packaging line
performance. By using energy balance mode, we kept the machine
full of containers, allowing cold products to help cool hot products
and avoiding the need for additional energy input• Bocs, Hungary: We saw our water efficiency improve by 8% in 2020
despite a 15% drop in production volume at the Borsodi brewery. We
focused on improving people processes, like holding weekly meetings
to address resource consumption and ensured consistent follow-ups
to address specific action items. In addition, the brewery installed
several incremental capital improvements, such as installing a more
efficient glass bottle flash pasteurizer and can line. Lastly, a more
precise measurement tracker was installed to help understand water
losses and manage consumption.

Large Brewery3 Water Intensity (hl/hl)
hl of water used per hl of beer produced
2019
2020

3.41
3.37

To help us better understand our current water usage and where
there are opportunities for improvement, we record and report on ourannual water usage broken down by both region and source.

Water Usage Breakdown by Region in 2020 (khl)
CentralWestern& Eastern
EuropeEurope

Total

North
America

Municipal

97,42685,431

5,624

6,259

112

Ground206,669

149,886

21,02033,790

1,973

Brackish

0

0

0

0

0

Surface

9,707

0

0

9,707

0

Total water
usage

314,473

235,318

26,64450,426

2,085

Rainwater
harvested

0

0

0

0

0

669

0

0

669

0

Water restored
to source

India

WHAT’S NEXTWe are committed to continually identifying innovative ways to reduce
our water footprint in our direct operations, including reusing waterwhere possible. In pursuit of this, we plan to continue to share bestpractices among our breweries and invest in upgrading equipment toimprove overall water-use efficiency.
3 Large breweries are: Albany, Ft. Worth, Golden, Milwaukee, Shenandoah, Trenton, Moncton,
St. Johns, Montreal, Toronto, Apatin, Bocs, Burton, Haskovo, Ostravar, Ploiesti, Smichov,
Tadcaster, Trebjesa, Zagreb.

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WATER STEWARDSHIP IN OUR
BREWERY WATERSHEDSOUR GOAL
Achieving and maintaining a sustainable global watersupply is not something we can do alone. By 2025,
we aim to establish programs with local partners toprotect high-water-stress watersheds and restore
over 3.5 billion gallons of water in communities where
our breweries are located. We define water-stressed
brewery watersheds as those experiencing challenges
related to water quantity.
OUR STRATEGY
We perform annual watershed risk assessments at our major
breweries to ensure we concentrate our interventions in key areas.
Each year, we update our assessment process to reflect insights fromthe World Resources Institute’s (WRI) Aqueduct Water Risk Atlas andthe World Wildlife Fund’s (WWF) Water Risk Filter. Incorporating thesedetails enables us to make a more precise assessment of current
water challenges, as well as see what future scenarios, based on
environmental and socioeconomic variables, could look like.

CASE STUDYTEX AS WATER ACTION
COLL ABORATIVE: PARTNERINGFOR WATER PROTECTION
The Trinity River Basin in Texas is a vital lifeline for approximately
13.5 million people, as well as the primary water source for our Fort
Worth brewery. However, with ever-growing population numbers, thisimportant water source is coming under increasing pressure. Nearlya decade ago, Molson Coors partnered with the Tarrant Regional
Water District and the Natural Resources Conservation Service(NRCS) to begin what would become a long-term commitment toprotecting the Trinity River watershed.
Since 2012, Molson Coors and the NRCS have provided close to$9 million in collective funding assistance to Texas farmers andranchers to improve the water supply. Through the partnership, we
have restored more than 8 billion gallons of water to the watershed.
On March 22 – World Water Day – we deepened our commitment
to protect the Upper Trinity River with the launch of the Texas Water
Action Collaborative (TxWAC). TxWAC has a clear aim – to invest inefforts along the Upper Trinity River that yield positive returns forwater quality and quantity. As a corporate partner, we will use ourprevious work with NRCS as a template to guide future funding
opportunities. We will also create proposals for conservation
organizations’ projects that could be further developed to preserve
the Upper Trinity River region for those whose lives depend on it.

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19

Addressing watershed challenges is a community effort and weengage with local government entities, nonprofits, industry partners
and other stakeholders to tackle key issues. By partnering in this way,
we are able to develop action plans that reflect perspectives from boththe private and public sectors, and provide a comprehensive approachto addressing the unique challenges of each watershed.
To help further minimize our impact, we engage in collaborative
projects and water conservation discussions, such as the CEO Water
Mandate and the Beverage Industry Environmental Roundtable(BIER). Through cross-industry dialogues, we can identify risks andtrends ahead of regulation and compliance requirements, share
best practices and work together to help ensure the security andsustainability of shared water sources.

OUR PROGRESS
We’ve refreshed our watershed risk assessment, focusing on the threewatersheds that are most vulnerable to water quantity challenges:
Fort Worth, TX; Golden, CO; and Ploiesti, Romania. We are working toestablish management and mitigation plans for each of these waterstressed brewery watersheds. This includes building in climate scenario
analysis, which we intend to align with recommendations from the
TCFD to help us prepare for potential water challenges in the future.
Read more about this analysis here.

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WHAT’S NEXT
We aim to restore 3.5 billion gallons of water by 2025. To support this,we plan to continue to partner with the communities surrounding ourbreweries. We are working to establish management and mitigationplans for each of our water-stressed brewery watersheds, building inclimate resiliency to help pre-empt potential water challenges. Throughour efforts, we hope to measurably improve water quantity, quality andavailability. At the same time, through our water stewardship efforts we
aim to protect local biodiversity, increase climate resiliency and uplift our
local communities both socially and economically.

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20

WATER STEWARDSHIP IN OUR
SUPPLY CHAINOUR GOAL
We are targeting a 10% improvement in water-use
efficiency in our agricultural supply chain. In our major
markets, we also aim to source 100% of our barleyand hops from suppliers that grow, produce anddeliver in a manner that recognizes and embraces
our sustainability standards.
OUR STRATEGY
We understand that weather volatility, exacerbated by the impacts ofclimate change, may threaten future crops in many sourcing regionswith knock-on effects for our success and viability as a business. Today,
52% of our agriculture supply chain is considered water-scarce andwater-stressed, according to WRI’s Aqueduct Water Risk Atlas. As such,
we want to work with farmers to build resiliency through embedding
water preservation and sustainability in their operations.
We want to help independent growers protect their crops and haveinvested approximately $25 million since 2008 to do so. This has
financed research into the latest farming techniques, provided
training opportunities for growers and funded the purchase of key
technologies, such as weather stations and soil moisture probes, tobetter determine water needs in our key growing regions. We also
introduced an incentive program to reward US barley growers who
adopt more sustainable practices.
In addition, we look for ways to improve water use through crop
resiliency. Molson Coors continues to invest in barley variety researchand development to introduce new, non-genetically modified organism(non-GMO) barley varieties that result in better yields and are morewater efficient. We aim to introduce these varieties in Colorado andIdaho in the coming years to help drive further improvements inwater-use efficiency while maintaining the high quality of our crops.

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INDICES21

OUR PROGRESS
Today, 99.9% of barley farmers and 36.8% of hops farmers formallyrecognize our sustainability standards. To incentivize more growers
to align with these standards, we have awarded approximately$4 million to date to those who do adopt more responsible practices.
In 2020, we introduced a new Moravian barley variety to Monte Vista,
Colorado. This variety, which we believe is the first new malting barley
to be introduced to this water-stressed watershed in over 15 years, hasbeen developed with greater water efficiency in mind. Through our
Better Barley, Better Beer program we work with suppliers to develop
more sustainable growing practices. This includes introducing novel
ways of tracking and monitoring water usage and, to date, we havecollaborated with approximately 740 farmers to reduce use of theequivalent of 9.8 billion gallons of water since 2016.

WHAT’S NEXTIn 2021, we plan to launch a geo-spatial tracking tool for our North
American barley growers. The geographic information systemtechnology, developed by Esri, will enable easier, more precise
reporting through geolocation and yield mapping. By connecting
this data to weather patterns, as well as farmers’ own behaviors andinputs, we expect to be able to help growers make better-informed
decisions on their farm. The Esri technology will map data onto thefield in real time, highlighting variations in crops and land quality.
This will allow farmers to apply water and other nutrients only as
needed, reducing input costs and minimizing unnecessary chemical
applications. We will be launching this tool across all our growing
regions throughout 2021, working together with farmers to provide
location-level reporting in the coming season.

CASE STUDYEMBEDDING BETTER SOIL HEALTH
MANAGEMENT PRACTICES
We have partnered with the Soil Health Institute to help ouragronomists encourage farmers to adopt soil health practices
that contribute to a more regenerative agricultural system.
Regenerative agriculture leverages techniques that enhancethe entire ecosystem of a farm, boosting diversity, safeguarding
natural resources and reducing emissions. At the heart of thisfarming approach lies soil quality. Healthy soils are key to building
drought resilience, enhancing nutrient recycling, improving water
quality and increasing capacity for carbon sequestration.
The training program will help agronomists develop afoundational knowledge of the theory behind soil health. It will
also offer hands-on experience of evaluating soil measurements
and using data to formulate farmer recommendations. The
program will be available to our agronomists from summer
2021. It marks the beginning of a partnership with the Soil HealthInstitute to explore how we can leverage our agricultural network
to promote soil health practices and, ultimately, reduce ouragricultural imprint.

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Climate Imprint
Preventing the irreversible effects of climate change
requires bold and immediate action. Globally risingtemperatures will have significant impacts on ourbusiness and across our supply chain, including
the farmers who grow our ingredients. However, achanging world also presents an opportunity to evolvefor resiliency, adapting to thrive under new conditions.
We believe Molson Coors has an important role to play,
and we are ready to leverage our abilities to leave amore positive climate imprint on the planet.

OUR APPROACH
We are taking a dual approach to tackling our climate imprint.
We are addressing our greenhouse gas (GHG) emissions at source,
preventing, reducing and eliminating emissions within our operations
and throughout the value chain.
At the same time, we are adapting our business to help protect itagainst potential future climate change impacts. Through ongoingclimate scenario analyses, we are consistently updating our enterpriserisk management mitigation plans to remain resilient in the face of achanging climate. Not only does this mean implementing operational
updates across our value chain, it also means evaluating evolving
trends to unlock new business opportunities by reaching newcustomer and consumer bases.

What
We Didin 2020

INDICES

Achieved absolute emissions
reductions of 24.1% in ouroperations and 22.5% in ourvalue chain since 201622

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DECARBONIZING TO CURB
CLIMATE CHANGEOUR GOAL
We set an ambitious 2025 goal to lower absoluteemissions by 50% within our direct operations. We havealso established a target to achieve a 20% reduction
in carbon emissions throughout our value chain in thesame time frame.
These goals have been verified by the Science Based
Targets initiative (SBTi). This makes us one of the few
leading companies to align our direct emissionsreduction goal with the 1.5°C temperature increasetarget recommended by the Intergovernmental Panelon Climate Change (IPCC).
OUR STRATEGY
We’ve identified four steps to achieve our carbon-reduction goals:• Improve energy efficiency by 20%• Develop our large breweries to be self-sufficient in CO2• Where possible, switch to cleaner fuel options• Increase the share of renewable sources in our energy mix
For our business to survive and thrive in the long term, we must
anticipate and adapt to evolving circumstances in a way thatsafeguards our operations while creating opportunities for businessgrowth. We have been working with our internal risk enterprise, legal
and finance teams to develop and review various climate-related
scenarios that may pose regulatory or physical risks to our business,in line with recommendations from the TCFD. This review will help us
identify risks across our value chain and develop a financial analysis
for scenarios identified as top priorities.
Significant climate-related risks are disclosed in our Annual Reporton Form 10-K and our enterprise risk management (ERM) program
addresses how we are managing our emissions to mitigate those longterm risks. Detailed reporting of our carbon footprint across the value
chain is available in our Climate submission on the CDP website.

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OUR PROGRESS
Throughout 2020, we were faced with maintaining fixed minimum
energy-consumption requirements while reacting to lower production
volumes. Our breweries responded quickly to address the fixedutilities system, empowering our people to identify effective solutions.
Several sites held weekly FEWER meetings to improve visibility of theissue and discuss clear actions on how to reduce local energy usage.
As a result, we were able to achieve significant savings in several of
our facilities:• Our Toronto, Canada brewery achieved a 7.9% reduction in energy
and an 8.6% reduction in emissions from 2019. This was primarily
accomplished through enhanced utilities tracking and additional
management oversight on energy usage. A more substantial daily
reporting process increased managers’ and directors’ awareness ofgaps against stated daily targets and provided real-time solutions.
Through this heightened focus on continuous improvement anddata-driven insights, the brewery was able to optimize pasteurizers,
boilers and refrigeration systems.

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INDICES24

In 2020, we used 12.1 billion megajoule (MJ) total energy across all ouroperational sites, compared to 12.5 billion MJ in 2019. Additionally, weachieved a 4.1% reduction in Scope 1 and Scope 2 emissions from 2019.

Energy Use (MJ)2019

12,583,729,843

2020

12,159,003,848

North America

10,228,595,298

Western Europe

629,877,513

Central/Eastern Europe
India*

1,214,485,039
86,045,999

Electricity Purchased (MJ)
2019

3,716,916,542

2020

3,617,135,182

North America

3,065,242,287

Western Europe

194,310,491

Central/Eastern Europe

337,902,232

India*

CASE STUDYINVESTING IN THE FUTURE
OF MOLSON COORSIn October 2020, we broke ground on a major multi-year overhaulof our historic Golden, Colorado brewery to dramatically improve
brewing sustainability, performance and flexibility. This overhaul is
expected to be finalized by the end of 2024.
The overhaul will involve installing more efficient fermenting,aging and filtration systems as well as upgrading the brewery’s
storage cellars. This should produce significant environmental
savings, including reducing waste by around 35% and water use byapproximately 100 million gallons every year. At the same time, we
aim to reduce energy use by 15%, contributing substantially to our2025 commitment to reduce emissions from our direct operations.
We’re invested in the future of the Molson Coors legacy,
developing our iconic Golden brewery to ensure that legacy is
as sustainable as possible. “We’re a Colorado family throughand through, and we take a lot of pride in the Golden brewery,”said Peter J. Coors, director of the G150 project. By investing
in upgrading the Golden brewery, we are reaffirming ourcommitment to the future of the company and to leaving behinda positive climate imprint on our planet and on our communities.

* Molson Coors sold its Indian breweries in early 2021, and will not be reporting against
these operations starting next year.

19,680,172

Renewable Electricity Generated by Business Unit (MJ)2019

28,734,232

2020

33,220,803

North America

30,188,667

Western Europe

257,202

Central/Eastern Europe
India*

2,774,9340

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MOLSON COORS ESG REPORT 2021

Scope 1 Emissions(tonnes CO2e)

P EO P L E

Scope 2 Emissions (tonnes
CO2e) Market Based2019

406,3772019654,9382020

398,026

2020

619,903

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INDICES25

2020 GHG Emissions – Breakdown by Segment
Agriculture

8%

Brewing materials

9%

Manufacturing

15%

Packaging materials

39%

North America

332,346

North America

545,543

Western Europe

23,776

Western Europe

18,809Central/Eastern Europe

Central/Eastern Europe

Logistics

12%

40,86051,441

Product cooling

17%

India

4,110

Other

0%

India

1,044

2020 GHG Emissions – Breakdown by Scope

Scope 2 Emissions (tonnes
CO2e) Location Based

Scope 3 Emissions(tonnes CO2e)4

2019634,1362019

4,572,093

2020

604,4212020

4,257,376

North America

542,567

North America

3,569,401

Western Europe

12,626

Western Europe

229,892

Central/Eastern Europe

45,117

Central/Eastern Europe

436,069

India

4,110

India

22,013

Scope 1

Scope 2
(market based)

Scope 3

7.5%

11.8%

80.7%

WHAT’S NEXT
Throughout 2021, we will work cross-functionally to develop long-termbusiness continuity or risk mitigation strategies based on the findingsof our TCFD climate-related scenarios analysis. We will be sharing theinformation with leadership and the Board of Directors who provide
the proper oversight and governance.
As well as evolving business resiliency, we aim to advance our efforts
to reduce emissions in our direct operations and value chain. To do so,
we expect to continue to decrease energy usage and, where possible,
expand the use of on-site renewable electricity. We are currently
working on developing a robust portfolio of off-site purchased
renewable electricity in all our regions to help us reduce our emissions.

4 Scope 3 emissions include those at both well to tank (WTT), and transmission
and distribution of energy for powering Molson Coors facilities. They also include
distribution of finished products.

CASE STUDYGOING GREEN WITH 100% RENEWABLE
ELECTRICITY IN THE UK
Bold goals can only be achieved with bold actions and our latest venture
into renewable energy in the UK certainly fits that description. As of March
2021, Molson Coors is the first major brewer in the UK to operate entirelyon renewable electricity. We have signed a 10-year power purchaseagreement with world-leading renewable energy company RWE to supply
our UK operations with electricity generated from the Tween Bridge windfarm in Yorkshire.
Through this landmark agreement, RWE will provide us with 75 gigawatt
hours of green electricity every year. That is enough to operate ourmanufacturing operations, offices, national distribution center andget our call center in Cardiff up and running. At the same time, thedeal has set us on course to achieve our carbon-emissions-reduction
target four years early in the UK while significantly reducing our global
emissions footprint.

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Packaging Imprint
We believe in the principle that waste is a resource outof place. Today, global resources are under increasingpressure in a throwaway culture, and we want tobe part of the solution, designing packaging to be
more sustainable and keeping materials in use andout of landfills. By closing the loop on our packaging
production, we can do what’s right for our consumers
and our planet.

OUR APPROACH
By consistently looking for new and existing opportunities to eliminate
waste or improve recyclability in our packaging, we can close the gap
between where our industry is now and realizing a more sustainable,
circular economy. We have established four goals for 2025 to help us
curb plastic waste, reduce our packaging imprint and close the loop on
material use at Molson Coors.

99.3% of our packaging is
now reusable, recyclable
or compostable

What
We Didin 2020

6.1% of consumer-facing
plastic packaging contain atleast 30% recycled content

Achieved zero waste tolandfill status in 17 major
manufacturing facilities

INDICES

26

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DESIGNING FOR BETTER DISPOSALOUR GOAL
To keep more of our packaging out of landfill, we mustdesign it with its end-of-life in mind. We have committed
to making 100% of our packaging reusable, recyclable orcompostable by 2025, making it easier to recover moreof it after use.
OUR STRATEGY
Research and development is central to identifying solutions that keep
packaging materials in use, and we continue to innovate and test newmaterials that enhance the reusability, recyclability and compostabilityof our packaging. At the same time, we are increasingly investing in
more sustainable technologies and ways to harness waste materials in
our packaging, such as creating product labels using spent grains.
In 2019, we joined the New Plastics Economy Global Commitment,
an initiative led by the Ellen MacArthur Foundation (EMF) thatbrings together over 450 organizations to achieve a circular economy
for plastic in which it never becomes waste. Additionally, we arefounding members of the US Plastics Pact, part of the EMF global
Plastics Pact network. In our role, we have committed to working
with other participating organizations to collectively deliver against
our shared vision.

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OUR PROGRESS
We know consumers want to make sustainable choices, but it isn’t
always clear how to do this. We want to give them a helping hand,which is why, through our participation in Canadian beer delivery
service The Beer Store, we are promoting the adoption of returnablebottles, which are nearly five times less carbon intensive whencompared to one-way bottles.
In the UK, we have removed over 700 tons of single-use plastic fromour operations since 2019. In our most recent step, we completed
a full transition from single-use plastic flow wrap and plastic canrings to carton board for all major brands including our Carling andCoors brands.
Working with paper-based solutions supplier Graphic Packaging
International, we developed a more sustainable solution that replaced
our plastic rings with a one-piece cardboard wrap. A secure locking
mechanism ensures cans are held in place with no need for adhesive.
The new packaging is made from renewable wood fibers fromcertified sources and contains up to 17% recycled cardboard, with
virgin fiber included to maintain strength and stability. By completing
this transformation, we are bringing the same familiar beverages tomarket in new packaging that is 100% recyclable.
Thanks to our ongoing commitment to develop packaging for better
disposal, by the end of 2020, 99.3% of all our packaging was reusable,
recyclable or compostable.

WHAT’S NEXTWe are proud of the progress we have made to date, but there is stillwork to be done to achieve our packaging goals globally. We areworking with local packaging and procurement teams across ourbusiness units to eliminate unnecessary plastics and increase use ofrecycled content where possible. At the same time, we are engaging in
local collaborations to boost recycling rates and support key initiatives
to engage consumers in the circular economy.

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INCREASING RECYCLED CONTENTOUR GOALEven as we design for recyclability, we are also looking
to increase the volume of recycled content in our
packaging, further supporting our commitment to amore circular economy. By 2025, we aim to ensure atleast 30% recycled content in all our customer-facing
plastic packaging.
OUR STRATEGY
As packaging is essential to keeping our beverages safe and freshfor consumers, we must ensure that any new developments balanceenvironmental sustainability with product quality. We are consistently
identifying and testing high-quality packaging alternatives that
contain more recycled content. This applies to both our primary andsecondary packaging, from PET bottles to plastic shrink wrap, to help
ensure optimal sustainable protection for our products.
In our latest carbon lifecycle assessment, packaging materials madeup nearly 40% of our carbon footprint. Alongside lightweighting andharnessing renewable energy, increasing the recycled content of our
packaging also helps us to minimize packaging emissions.

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OUR PROGRESS
By the end of 2020, 6.1% of our customer-facing plastic packing
contained at least 30% recycled content. In the Czech Republic, ourpre-form PET bottles have contained 30% rPET since June 2020.
Additionally, we became the first business in Canada to trial packaging
rings that contain over 50% recycled plastic content. We will also
be testing RingCycles in the US at the end of 2021 and will start
introducing them in market in 2022.
In the UK, we built on our long-standing partnership with bottlingcompany Encirc to trial new, low-carbon bottles for our Staropramen
brand. During the trial, 2 million glass bottles were created using
up to 100% recycled or waste glass. Since they were produced using
renewable and sustainable biofuels, the carbon footprint of eachbottle was reduced by up to 90%. Following the success of the trial, ourlow-carbon bottles have been distributed to stores across the UK.

WHAT’S NEXT
After our removal of single-use plastic wrap and rings from major brandcan packs in the UK, our next step is to minimize the use of virgin plastic
across all of our packaging types. Following successful trials in late 2021,
we will be transitioning the remaining single-use plastic wrap packaging
we use to include a minimum of 30% recycled content. This packaging
update will help us advance a circular economy, aligning with ourcommitment to the New Plastics Economy Global Commitment.

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SAVING WASTE FROM L ANDFILLOUR GOAL
To minimize waste production, even as we develop
more sustainable packaging for our consumers, wemust also focus efforts internally to reduce waste in
our own operations.
GIVING OUR WASTE A SECOND LIFE
Our WCSC program supports work to decrease production losses andeliminate operational waste through improved analysis. Glidepaths
have been established by our Environment, Health and Safety (EHS)
teams for each facility to divert waste from landfills.
We monitor waste streams to find ways to give used materials asecond life. Spent grains from brewing processes are particularly
valuable, with most going to local farms for use as animal feed. Spentyeast is sold and made into food spreads for human consumption as
well as for pet food.

ACHIEVING ZERO WASTE STATUS
By the end of 2020, 17 of our major brewing and manufacturing
facilities had achieved, or sustained, zero waste to landfill. Of these,eight were in the US, eight in Europe and one in Canada.
We are proud that despite the challenges of 2020, our Zagreb breweryin Croatia achieved zero waste to landfill status. The brewery’s successcan be attributed to the establishment of a culture of waste separation,
stressing the importance of properly separating both packaging andmunicipal waste as it’s generated. Having cleaner waste streams has
also made it easier to source and establish new partners downstreamthat can process these materials for reuse.

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29

Resource Efficiency (tonnes) by Region 2020
Total

US

CanadaEuropeIndia

Landfill

869

148

354

367

0

Solid waste
to energy
recovery

9,325

1,537

4,916

2,872

0

Compostand soilamendment

68,23864,047

342

2,710

1,139

Waste recycled

63,99836,41012,352

14,189

1,047

Reused total

807,253

460,572

45,136

296,519

5,026

Total solid
waste

949,683

562,714

63,100316,657

7,212

0.09%

0.03%

0.56%

0.12%

0.00%

Percentage(Landfill/total
solid waste)

MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

PLANETO U R F O U N D AT I O N A L C O M M I T M E N T S

INDICESOUR FOUNDATIONAL
COMMITMENTS
For Molson Coors, it’s not just what wedo that matters; how we do things isjust as important. As we maintain ourcommitment to producing extraordinary
beverages, we are equally dedicated toeffective corporate governance, acting
transparently and in ways that uplift ouremployees and promote responsible
consumption of our products.
The building blocks of our business andsustainability strategy are our threefoundational commitments: Alcohol
Responsibility, Social and Governance.
Being an ethical, responsible businessmeans upholding these commitments.
It’s why we are building a culture where
everyone at Molson Coors can takeaccountability for their actions,
be bold and decisive in theirwork and celebrateaccomplishments
together.

Commitment

Scope

Alcohol Responsibility

Employee alcohol training,
responsible marketing,responsibility programs,
low- and no-alcohol beverages,
alcohol policy and labelingSocialCommunity investment,
employee development andengagement, health, safety
and well-being, human rights,
and sustainable and ethicalsupply chain

Governance

Ethics and compliance,
anti-bribery and corruption,
sustainability oversight,
remuneration, ERM, politicalcontribution transparency
and tax policy

30

MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

Alcohol Responsibility
PromotingResponsible
Consumption
We want consumers to enjoy our beverages responsibly,
making informed choices that help them to celebrate
all life’s moments. We know we must lead by example,
which is why we work closely with our employees andteam members to ensure they can advocate for the
responsible consumption of our products.

What
We Didin 2020

In 2020, we had no material
incidents of non-compliance withapplicable industry and regulatory
marketing and labeling codes
resulting in a fine or penalty

SETTING THE EX AMPLE ON
ALCOHOL RESPONSIBILIT Y
We ask every employee to complete alcohol responsibility training. This
includes information on the impact of alcohol on the human body, as
well as how to recognize and intervene, if necessary, when excessive
drinking is observed.
The training, which was launched across our entire business in 2018, isprovided to employees every year and refreshed periodically to reflect
evolving guidance. All new employees are also required to review
and comply with the Global Employee Alcohol Policy at the start of
employment. Once equipped with this knowledge, our employees areencouraged to be champions for alcohol responsibility, not only at
work but in their personal lives as well.

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INDICES31

ENSURING RESPONSIBLE
MARKETING
Our commercial employees must familiarize themselves with our
Global Commercial Responsibility Policy. This provides detailed
guidance on how to responsibly develop, package, market andsell our products.
As well as implementing our own robust marketing compliancestandards and Global Employee Alcohol Policy, we strive to makesure 100% of our advertising and marketing adheres to applicable
company, industry and government standards. We have
implemented measures to help ensure compliance:

MARKETING COMPLIANCECOMMIT TEERegional Marketing Compliance Committees
work with our legal team and commercial
enterprise teams to regulate our advertising andfocus our alcohol marketing on the legal drinking
age. Our advertising messages should always
be legal, truthful, honest and consistent withprevailing cultural standards of good taste andsocial responsibility.

GLOBAL COMMERCIALRESPONSIBILIT Y POLICY
Our commercial employees and agency partners
receive training on our Global Commercial
Responsibility Policy, which details ourcommitment to develop, package, market andsell our products in a responsible manner.

MARKETING TO THE RIGHTAUDIENCES
Our advertising and marketing are only directed
at adults who are at least the legal drinking age
or 18 years of age, whichever is higher. Working
with our business unit legal teams, we aim toensure communications are placed on media
channels where at least 70% (71.6% in the US) of
the audience is of legal drinking age. Continually
tracking advertising metrics provides us with an
overview of how we’re doing.
We believe every marketing message we release should enhance
our reputation as a lawful and responsible corporate citizen.
We invite consumers to let us know, via a third-party complaint
resolution process, when they think we haven’t fulfilled our
duty to self-regulate our advertising materials. Molson Coors
strives to comply with all industry and regulatory marketing andlabeling codes. To the best of our knowledge, we have had nomaterial incidents of non-compliance with applicable industry
and regulatory marketing and labeling codes resulting in a fineor penalty in 2020. See more about notice of violations, legal andregulatory fines and advertising impressions in our SASB index.

MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

Alcohol
Responsibility
Supporting
Consumer Choices
Developing effective programs is one important way
we continue to promote responsible drinking andaddress the harmful use of alcohol. At the same time
we are creating a growing portfolio of low- andno-alcohol beverage options, offering consumers
more choices to celebrate responsibly.

ADDRESSING HARMFUL DRINKINGIN ALL ITS FORMS
We are committed to the responsible consumption of alcohol andhave worked diligently to develop targeted programs that address
harmful drinking in various forms, including underage drinking, drunk
driving and heavy episodic drinking. These programs are tailored toaddress the most pressing and relevant issues in the communities
where we operate.

CASE STUDYENCOURAGING SMART CHOICESACROSS EUROPE
Our Croatian Think! campaign raises public awareness of
responsible alcohol consumption and preventing harmful alcoholuse, particularly in those below the legal drinking age. In 2020, thecampaign had two messages: “When you drink, don’t drive” and“You need to know when to stop.” These messages were sharedthrough a series of articles published by the news outlet Telegram.

PLANETO U R F O U N D AT I O N A L C O M M I T M E N T S

32Introduced or maintained
programs to promote responsible
drinking and address the harmful
use of alcohol in 10 countries5

What
We Didin 2020

Offered consumers high-quality
low- and no-alcohol beverage
options in all the countries where
we have production

CASE STUDY
BRINGING DRUNK DRIVING EDUCATION ONLINE
For over a decade our Alcohol Is a Bad Driver initiative has helped
raise awareness in Bulgaria of the dangers of drunk driving. In
2020, amid social-distancing regulations, we had to get creative
to make sure we still shared this important message. The result
was that Alcohol Is a Bad Driver went entirely online for the firsttime since the program’s inception over 10 years ago.
At the heart of our efforts was a song specially written for the
campaign by a local band. Titled “The Key is You,” the songhighlighted the importance of not driving after consuming alcohol.
It spent over four weeks in Bulgarian National Radio’s Top 20, while
the music video received over 120,000 views, showing how effective
music can be at spreading the responsible drinking message.
Although the activation of our annual program looked a little
different this year, we are proud of the Bulgarian team, who had
to quickly pivot in the way we shared this important message withthe masses. The 2020 Alcohol Is a Bad Driver campaign garneredover 3 million impressions, with the message being as relevant
as ever during the pandemic. Following the success of this digital
activation, our team will continue to evolve how we reach people,
looking for innovative ways to continue sharing this importantmessage through both in-person and digital platforms.

In neighboring Serbia, we continued to activate our When I Drink,
I Don’t Drive campaign. This message was shared through an out-ofhome, digital and PR campaign, while 500,000 breathalyzer pieces
were donated to the Ministry of Interior’s Traffic Police Directorate.
Molson Coors employees also helped engage consumers during
Global Beer Responsibility Day, offering prizes in exchange forcompleting an online quiz about drunk driving awareness.
A similar initiative is run every year in Montenegro where, in 2020,
we launched a billboard campaign to remind the public not to drink
and drive during the holiday and New Year period. Two thousand
car air fresheners sporting the “Don’t Drink and Drive” message
were distributed and we donated five breathalyzers to the Police
Directorate to help them tackle the issue. By taking a dual approachto combating drunk driving – public campaigning and supporting
law enforcement – we can continue to effectively raise awareness of
the issue.

INDICES

5 Slovakia was removed from the list of relevant
countries as we have no production operations there.

MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

BEVERAGE OPTIONS TO SATISFYEVERY TASTE
We are expanding our portfolio of low- and no-alcohol options,giving consumers more choice no matter what their preference while
continuing to deliver on the familiar experience of our legacy brands.
This journey began in 2018 when we launched our first non-alcoholic
beverage – Clearly Kombucha. In 2019, we introduced our Vyne range
of non-alcoholic, hop-infused sparkling waters in Canada.

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INDICES33

In 2020, we built on our collaborative partnership with L.A. Libations,to launch a new range of probiotic seltzers: HUZZAH ! An easy drinking
seltzer filled with natural flavor and probiotic for your gut health.
The HUZZAH! range of seltzers offers consumers a low-calorie, lowsugar drink choice in three flavors – raspberry and lemon, strawberry
and hibiscus, and juicy pear.

CASE STUDYEMPOWERING BYSTANDERS TO ACTIn 2011, we launched our Great Plays College Grant program in
the US to offer universities financial support to prevent harmful
alcohol consumption among college students. In 2020, we
provided a $10,000 grant to Marquette University in Wisconsin toaccelerate the digital transformation of its successful Red Watch
Band program.
Red Watch Band is a bystander program that provides students
with important training in recognizing and responding to thesymptoms of acute intoxication in their classmates. Many students
on college campuses witness peer pressure to participate in risky
alcohol use. Through a one-hour session, students learn about the
impacts of alcohol, the signs that someone needs help and how
and when to intervene.

CASE STUDY
NATURAL ENERGY DRINKSFOR THE EVERYDAY WARRIOR
In 2021, Molson Coors entered into an exciting new partnershipwith a group of health-conscious leaders, including actor
and former wrestler Dwayne “The Rock” Johnson, to create
the next generation of energy drinks – ZOA.
ZOA represents our first foray into energy drinks and contains awell-balanced selection of superfoods, amino acids and vitaminsfrom natural sources. With no alcohol and natural caffeine
derived from green tea and unroasted coffee beans, ZOA offers
consumers an energy boost that balances great taste with healthy
nourishment. ZOA has been designed to satisfy every taste
preference and is available in five flavors and both zero-sugar
and 100-calorie versions.
ZOA fits squarely into our ambition for our non-alcoholic business,
which is to bring better-for-you beverages to consumers globally.
We have worked with the ZOA partners to create a drink, designedwith “everyday warriors” in mind, to suit everyone, from world-classathletes to office workers.
We believe ZOA, and our partnership with Dwayne and his team,represents a unique offering in the energy drink category. “We arecommitted to transforming into a beverage company, and adding
ZOA is another indication of the strength of our conviction,”says Pete Marino, President of Molson Coors’ emerging growthdivision. Introducing ZOA to our existing portfolio represents a
big step toward building a sustainable non-alcoholic business at
Molson Coors for today, tomorrow and the future.

Throughout 2020, Marquette University began the process ofbringing Red Watch Band entirely online to offer students
24/7 access to the information they need about harmful drinking.
Additionally, provision of a mobile app will allow students, staff
and alumni to test their own levels of impairment after a few
drinks. As a key player in the global beverage industry, we aim
to harness the resources available to us to support students andothers in the college community in curbing harmful drinking
behaviors at source.

MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

Alcohol
Responsibility
Advocating forSocietal Progress
We want people to enjoy our products responsibly– which is why we promote effective, targeted
programs that address the harmful use of alcohol in
all our markets. However, being responsible is also
about communicating product information to enableconsumers to make informed decisions about drinking.
We have developed robust guidelines and cultivatedeffective industry partnerships to ensure we consider
this in every marketing decision we make.

PARTNERING TO PREVENTHARMFUL DRINKING
We believe collaboration is key to reducing harmful alcohol use,which is why we partake in key industry-led partnerships, such as theWorldwide Brewing Alliance, to be part of the solution. We are also afounding member of the International Alliance for Responsible Drinking(IARD), a nonprofit organization that aims to promote a culture of
responsibility and reduce harmful drinking. Through our participation,
we support dialogue around global alcohol policies, set marketing andsales standards to safeguard minors and collaboratively deliver on
initiatives that combat harmful drinking. We are proud to have worked
with IARD and leading online retailers and e-commerce platforms
on global standards for the online sale and delivery of alcohol. This
international initiative is focused on supporting consumers’ increasing
demands for greater convenience with enhanced standards of
responsibility that aim to prevent sale to those underage and reduce
harmful drinking.

PLANETO U R F O U N D AT I O N A L C O M M I T M E N T S

What
We Didin 2020

INDICES

34

Made nutritional information,
alcohol serving facts andingredients available forover 285 of our products

A GLOBAL ACTION PL AN
In February 2020, the WHO called for accelerated action to reduce
harmful alcohol use worldwide. As a member of IARD, we actively
support international goals to reduce harmful drinking and seek tocontribute to the WHO’s work in developing an Action Plan to reduce
the harmful use of alcohol. Indeed, in December 2020, IARD member
companies committed to further strengthening existing efforts to
reduce harmful drinking, including action to strengthen marketing
rules, as well as implementing stricter measures to reduce dangerous
behaviors such as binge drinking and drunk driving.

ACCELERATING REDUCTIONSIN UNDERAGE ACCESS
While rates of underage drinking are declining in several countries,
this trend is not universal. To be a responsible business, we believe thatour products should only be marketed and sold to those of the legal
drinking age. Through our IARD membership, we have committed to
implementing age restriction messages or symbols on all our productlabels, in line with local laws and regulations. This includes our alcoholfree extensions of alcohol brands.
In an increasingly digital world, we’re also implementing measures toprevent minors from viewing online alcohol advertising and working
with retailers to implement standards for the online sale and deliveryof alcohol. In December 2020, Google announced developments totheir advertising options to allow people to opt out of seeing adverts
from certain categories, including alcohol and gambling. The initiative,
which will first be launched on YouTube, has been developed inpartnership with IARD members to give people more control overwhat they’re viewing.

MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

PREVENTING UNDERAGE DRINKING
WITH DIGITAL ID VERIFICATIONPart of our commitment to alcohol responsibility is ensuring alcoholic
products are only sold to people of legal drinking age. To support this,we recently confirmed our participation in pilot tests of new TruAge™
technology in convenience stores across the US.
Announced by the global trade association for convenience and fuelretailing, NACS, the new digital system represents a breakthroughin age verification at retail point-of-sale. The TruAge™ app isdownloaded onto a consumer’s phone, providing a quick, easy andcardless way to confirm their age and ID when buying age-restricted
items. As well as supporting in-store purchases, the tool can beused for confirmation during online shopping, home deliveries andcurbside pickup.
Molson Coors is the first major global beer company to support thisinnovative solution. By teaming up with TruAge™ we are furthering ourefforts to tackle underage drinking, exploring how digital verification
can help keep alcoholic beverages away from minors.

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INDICES35

SUPPORTING INFORMED CHOICES
We understand that, more and more, our consumers want to makeinformed beverage decisions. We want to support these decisions withtransparent information on what’s in the beverages we make.
We are working toward delivering nutritional information, and alcohol
serving facts and ingredients, to consumers for 100% of our products.
Currently, over 285 of our products meet our labeling criteria, withdetails either on the packaging or on relevant brand websites. Nearly
100% of our Molson Coors brands in the US disclose ingredientson www.molsoncoors.com, and in the European Union, as part of
The Brewers of Europe transparency initiative, all our products will
voluntarily disclose ingredient and nutrition (calorie) information.
Additionally, through IARD, we have recently committed to include– where legally permissible – alcohol content, energy value, andsymbols or a form of words on labels warning against drinking during
pregnancy and driving while intoxicated. This builds upon our existing
IARD commitment to include age restriction reminders that sends a clear
message that minors should not consume alcohol. We will continue toprovide access to online resources and work with others at both a local
and national level to empower consumers with information so they canmake informed decisions about whether or not to drink.

CASE STUDYSIMUL ATING THE DIGITAL L ANDSCAPE
OF ADVERTISING
Increasingly, consumers look to online spaces to gather
information meaning that, for many companies, digital advertising
is a valuable tool for reaching a wider audience. To ensure we’re
promoting our products as responsibly as possible, we first needto understand who is exposed to our marketing.
In 2020, IARD and the World Federation of Advertisers (WFA)commissioned the services of data analysts, Nielsen, to better
understand advertising activity across 12 markets.
While the monitoring does not show real world exposure to ads,
as it uses avatars and not real people, it can give an idea of whatchildren are potentially exposed to. The avatars are not ‘assigned’ages, rather they follow the browsing behavior of people indifferent age categories (children, teenagers, adults, and aneutral/control profile). These avatars then visited 100 websites
and YouTube videos over 32 days to monitor real-rime exposure toadvertising.
Key results:
1.	In September 2020, 564,252 ads were viewed across the 12
markets across all product categories by Nielsen’s four (adult,
teen, child, neutral) avatars.
2. 	Nielsen found that 0.11% of all online ads are for alcohol
beverages.
3. 	Nielsen estimates that a minor would need to visit an averagesite 1,086 times before they might see an alcohol ad.

MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

SocialHelping Communities
in a Difficult Year
We strive to be a responsible corporate citizen anda good neighbor, with an active presence in ourcommunities. During the coronavirus pandemic,
our role in the communities where we are presentchanged but did not diminish. The realities of lockdown
and quarantine gave us a renewed opportunity to be
there for our neighbors, supporting them in a time ofgreat need.
The pandemic is still impacting communities around the world andis one of the biggest challenges many have had to overcome in their
lifetimes. Businesses have a duty to support communities as theyrebuild, and this is a responsibility Molson Coors is committed to
upholding. We have been able to extend meaningful support to ourpeople, communities and partners, playing our role in contributing to
mitigate the pandemic’s harm and set the stage for recovery.

SUPPORTING EACH OTHERIN TIMES OF NEED
We are a part of our local communities and they are part of
who we are. It’s why we are dedicated to uplifting them in timesof need. As a company, we support a range of organizations
that promote civic leadership, alcohol responsibility, economic
empowerment and sustainability to build more resilient andthriving communities.
This support was even more critical throughout 2020. It required
us to show up in new ways and we rose to the challenge,
volunteering virtually and donating to more organizations thanever before. From the health industry to the hospitality industry,
we donated items from hand sanitizer to masks to meals inorder to help meet the tremendous needs of our communities.
While we continue to support our local neighbors, we know
there are industry peers who have been just as impacted by the
pandemic. We have extended a helping hand to our partners
who have been hit hardest, working together to recover andbuild a stronger food and beverage industry going forward.

PLANETO U R F O U N D AT I O N A L C O M M I T M E N T S

INDICES36

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INTRODUCTIONP EO P L E

PLANETO U R F O U N D AT I O N A L C O M M I T M E N T S

INDICES37

US AND CANADAROMANIAIn the US and Canada, we teamed up
with food banks6 to donate nearly 3 million
meals. The donations were divided
across 10 locations, helping alleviate
unprecedented pressure on food banks
and bringing food to those most in need.

We helped purchase and distribute
food packages, totaling €5,000($6,000), to vulnerable and elderly
people. To 220 families, we handedout packages, each with two weeksworth of food. We also partneredwith the Red Cross to donate
Personal Protective Equipment(PPE), and other items like fresh fruit,
to frontline healthcare professionals.

SERBIA
Our Apatin, Serbia brewery, donated$70,000 to the Republic Health Insurance
Fund to procure medical equipment
during the pandemic. We also contributed€10,000-worth ($12,000) of Molson Coors
non-alcoholic beer packs to a food drive,
supporting 10,000 households across
20 cities and municipalities.

CANADAOn International Nurses Day, we
thanked 20,000 Canadian frontline
healthcare workers for their tirelessdedication throughout the pandemic.
Teaming up with six hospitals, wedonated CAD$500,000 ($400,000) in
gift card codes for meal delivery app
SkipTheDishes to offer a meal on us.
We also donated CAD$250,000 ($200,000) to United Way Centraide duGrand Montreal to help community members struggling to make ends
meet. This amount matched a donation made by the Molson family.

MONTENEGROOur Montenegro team donated €15,000($18,000) to the Clinical Center ofMontenegro in Podgorica to support thefight against coronavirus. This included
four infusion pumps, which are criticalto controlling the delivery of liquids andmedications to patients.

BULGARIA
Our Pivovarnitza Kamenitza brewery teampartnered with the Red Cross and Plovdiv
Municipality to cook at a local community kitchen
during lockdown. “Pivovarnitza Charity Kitchen,”continued even after restaurants reopened, with
our employees volunteering over 100 hours to help
those in need. The program reached over 200
families, with over $2,000-worth of food.

HUNGARY
Adjusting to school closures was particularly
challenging for disadvantaged children withno access to a computer at home. To support
the switch to digital learning, we donatedseveral tablets, collectively valued at over
$1,000, through the Hungarian Reformed
Church Aid to children across Borsod county.
6 https://www.feedingamerica.org/hunger-in-america

CASE STUDYHELPING REBUILD ZAGREBIn March 2020, Zagreb, Croatia’s capital, was hit by a 5.5
magnitude earthquake which left 1,900 homes uninhabitable andcaused an estimated 86 billion kuna ($13.3 billion) in damages.
We reacted quickly, launching the “Good People” campaign tothank the heroes among us: the medical staff, firefighters andvolunteers. We donated 1 million kuna (just over $155,000) to
frontline organizations, including:• Croatian Mountain Rescue Service (HGSS): Aided constructionof a training education center and purchase of essential rescue
equipment.
• Blue Phone: Supported Croatia’s oldest psychological support
line to remain operational, digitizing services and printing a“Words Make Miracles” book for distribution.
• Fond 5.5: Fond 5.5 provided financial support to sociallyvulnerable citizens following the earthquake. Molson Coors
contributed funding toward vital repairs in 20 homes.
• Center for the Homeless: Together with the Croatian Homeless
Network, we donated equipment to the center to help prepare
for and adapt to winter conditions.
We also gathered a team of over 200 volunteers who offered theirtime and expertise to help Zagreb recover.
“Good People” went beyond just donations. We teamed up witha recording artist and 150 Croatian citizens to produce the song
“Heroes.” We arranged an exhibition of volunteers’ portraits in
Zagreb and commissioned murals of gratitude in the three largest
cities in Croatia.
Croatia is home to our Ožujsko pivo brand and brewery. As such,
we are proud that we were able to offer a helping hand to ourneighbors, supporting local people in this time of great need.

MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

SocialDeveloping
Our People
At Molson Coors, we are always looking for ways toimprove and help one another grow, which is why Learn
Every Day is one of our five core values. We see career
growth and development as cornerstones of employee
engagement. Whether it’s on-the-job experience, ourtalent-development program or training resources, wewant our employees to have every possible opportunity
to reach their full potential.

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INDICES38

Learning and Development in 2020
• 20.2 hours of training and development per full-time employee
on average• 1,045 live sessions delivered globally with 54,771 attendees

299,822hours of training and development logged

64.5%

9.2%

supply chain andcommercial topics

onboarding
new employees

10.8%
leadershipdevelopment
programs, including
Living Leadership

ENABLING PERSONAL GROWTHPERFORMANCE AND PROGRESSWe encourage our employees to develop their careers and learn every
day at Molson Coors because we believe that when our people grow,our company does too. Our aim is to help employees unlock theirpotential so they can thrive in their current job and also realize new andexciting possibilities.

As we strive to strengthen our culture and create a positive employee
experience, it’s important our employees set meaningful goals that arealigned to our company priorities. Having the right goals ensures each
employee understands what they need to do, why their work mattersand how it contributes to our overall success.

With this in mind, we launched a new talent planning experience inearly 2021. The process is designed to help us understand our people’s
ambitions and identify growth opportunities that fit their needs andMolson Coors’. We do this through quality one-on-one meetings
between employees and their managers that are focused on careerdevelopment, creating and following personal development plans
and encouraging continuous learning.

Employee performance is assessed at year-end based on achievementof individual goals and the degree to which our values are modeled toachieve them. In 2020, we changed the weighting of these measuresfrom 60% goals and 40% values to give equal weight to goals and values.
By increasing the focus on our values, we can strengthen our culture
and ensure Molson Coors is a great place to work while achieving ourbusiness results.

Resources such as our First Choice Learning Center and in-person
and online training programs, along with experiential learning,enable our employees to build skills and learn from others.
In 2020 and into 2021, we prioritized helping our leaders andmanagers to advance their leadership skills. One of our flagshipprograms, Living Leadership, trains all team leaders in the importanceof authentic leadership and how to build a strong growth mindset.
The course enables participants to:• Understand leadership purpose• Identify ways to build trust and empower self-authenticity• Give constructive feedback to support improved teamperformance• Utilize insights into their own thinking preference to better drivestrong team performance

CASE STUDYMENTORSHIP TO HELP EACH OTHER GROW
People at Molson Coors are skilled and knowledgeable inwide-ranging and diverse ways and we want to harness
this expertise to help each other to grow. In Romania, werecently launched a mentoring program to pair employees
who want to learn new skills with more senior colleagues
who can coach them.
Matching mentors to mentees is done through a “blind”
process, meaning pairings are decided regardless of job
level, age, gender or role. This allows for greater cross-teamcollaboration, creating stronger, more diverse networks
across our company. Originally developed in Romania,
a similar program has now been introduced across the
EMEA/APAC region, offering employees the opportunity togain valuable insights from others, whether they work in thesame facility or not.
We believe our company develops best when our employees
succeed. This mentor program is just one more way we aresupporting our people to grow and achieve their career goals.

INTRODUCTIONP EO P L E

SocialEngaging
Our Employees

O U R F O U N D AT I O N A L C O M M I T M E N T S

What
We Didin 2020

Our goal is to create a positive employee experience
for all our employees by tapping into our values – inparticular, Putting People First. We continue to buildon the foundations we set in 2020, strengthening ourculture by developing a more diverse and inclusive
workplace. We welcome a growth mindset, embracebold new ideas and will continue tracking andmeasuring employee experiences to drive satisfaction,stronger engagement and business performance.

UNDERSTANDING WHAT MATTERS
At Molson Coors, we use a continuous listening model to ensure weunderstand how our employees are feeling and what they are thinking
throughout the year. This approach allows us to regularly connect with
our employees and agilely address opportunities that can positively
impact our people and our business.
We continue to gauge our employees’ sentiments through a quarterly
Employee Experience survey in North America and bi-annual surveys
in our European business unit. The survey focuses on our culture,values, DEI efforts, well-being, leadership and more.

Employee Engagement

The Employee Experience score is based on how many of our people
would recommend Molson Coors as an employer versus how many
wouldn’t. The scale for the score ranges from -100 to +100, whereanything above 0 is considered successful. This methodology is basedon the formula used for determining Net Promoter Scores and isdifferent from how we previously surveyed and tracked employee
engagement. We will continue to report on our annual Employee
Experience score going forward and work toward ensuring we’remaking Molson Coors an organization we are all proud to be a part of.
North
America

EuropeAnnual survey participation rate

54%

82%

Based on my employee experience,
Molson Coors is an employer I would
recommend to my friends

+6*

+38

* Measures likelihood of individuals to recommend Molson Coors as a place to work.
The Net Promoter Score ranges from -100 to +100; the higher the score, the larger thenumber of advocates we have for our employee experience.

INDICES

39

Continued to provide a positive
employee experience by building apeople-first culture and living ourvalues. In 2020, we achieved an
employee experience score of +6,
which means our employees arelikely to recommend the company
to their friends and family.

CULTIVATING A GREAT PL ACE TO WORK
We want people to enjoy working for Molson Coors, which is why
we are always on the lookout for ways to improve the employee
experience. While this ambition is not driven by a desire for externalawards, we are nonetheless proud to receive recognition.

TOP EMPLOYERTOP EMPLOYERCANADAUK

Forbes(Achieved 8 times)
Top Employers Institute

BEST PL ACE
TO WORKUS(18th consecutive award)
Human Rights Campaign’s
Corporate Equality Index

FAMILY FRIENDLY
ENTERPRISE
CERTIFICATESERBIATMSy FMCG ko
ndl
m
rie

a u Srbiji
nijpa

In 2020, our number one company goal was to shift our culture. To
measure our progress, we began implementing a series of quarterly
surveys to help us understand how our people are feeling about theemployee experience at Molson Coors, including our culture, our values,
our D&I efforts and our leadership in all these areas. Specifically, tomeasure employee experience, we ask employees to rate the following
statement on a 10-point scale: “Based on my employee experience,
Molson Coors is an employer I would recommend to my friends.”

2020

PLANET

Prva Family
F

MOLSON COORS ESG REPORT 2021

TOP EMPLOYER

CROATIA

Certificate Employer Partner(CEP)

GOLD – ACHIEVINGEXCELLENCE AWARD
FOR WORKPL ACE
WELLBEINGCROATIA & UK
Mind

MOLSON COORS ESG REPORT 2021

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INDICES40

SocialPromoting Employee
Well-Being
Well-being is about more than just physical well-being– it includes emotional, mental and financial health, aswell as social well-being, which is about connections
with others. And we understand if one of these areas
is a struggle, it can impact the other areas. We provide
several resources and support programs to help our
people improve their wellness so they can thrive at work
and in their personal lives.

PROMOTING HEALTHY LIVING
We promote healthy lifestyles across our global enterprise by offering
health benefits, wellness and work/life balance programs that are
tailored to employees’ needs and culture by work location. In North
America, employees can participate in our wellness program via a
new in-app experience that was relaunched in 2021 and incentivizes
healthy habits and lifestyles. All of Molson Coors’ business units comply
with applicable minimum required maternity leave laws and, in many
countries, we go further to provide flexible work schedules and extended
leave for new parents.

PRIORITIZING MENTAL HEALTH
The need for remote work and social distancing has changed the
dynamics of the workplace and people may be feeling a range ofemotions. That’s why we provide resources, such as connections tovirtual healthcare, remote fitness and wellness support, and a free
24/7 employee assistance program (EAP) for coping with stress,
isolation and anxiety, ensuring we support not only the physical healthof our global employees, but also their mental health and well-being.
Across our European business unit, we maintain a collection of
resources to promote employee well-being. Quarterly newsletters are
distributed in multiple languages, covering a range of topics, including
managing stress, maintaining a healthy work/life balance and theimportance of good sleep. Webinars are provided through our EAP
provider to support these publications. A designated website, housing
a compilation of useful resources for employees, is maintained by ourEAP provider. On-site, 70 accredited mental health first aiders form a
key part of our Mental Health Champion network and are on hand to
guide colleagues through issues.

CASE STUDYKEEPING SAFE IN TIMES OF PANDEMIC
Throughout 2020, everyone has struggled with the impact of thecoronavirus pandemic. At Molson Coors, we have worked hard toensure everyone feels safe and supported, introducing measures
to keep people healthy, both physically and mentally.
Remote working was offered globally to most office-based employees
and contractors. We also implemented strict measures in our brewing
and distribution facilities to help ensure the safety and health of ouremployees who must work on-site. These included deep‑cleanings,
increased availability of PPE, social distancing, temperature checks
and additional protocols to ensure everyone’s safety.
In our European business unit, we developed a series of actions
to show our brewery workers and off-site teams how much weappreciate their ongoing dedication throughout the pandemic.
Employees who had been furloughed were offered retraining in
key protocols, including information on how to prioritize theirwell-being. We implemented lateral flow testing for our brewery
teams to quickly identify anyone who may be an asymptomatic
carrier and keep everyone safe at work.
We are grateful to the people in our breweries and in our
distribution network who kept our business running during an
unusual and difficult year.

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P EO P L E

SocialEnsuring Workplace
Health and Safety
We believe the health and wellness of our people isfundamental to their performance. We aim to provide
safe and healthy working conditions for the preventionof work-related injury and promote a sense ofownership for the health of our employees, our society
and the environment.

A CULTURE OF SAFET Y OWNERSHIPOur EHS Policy guides our approach to managing health and safety.
Based on the Policy, we develop our safety programs to promote a
sense of ownership for personal safety and that of colleagues at alllevels of the business. We proactively identify and control EHS risks andare committed to continually improving our performance to prevent
workplace injuries and illnesses. We use Lost Time Rate (LTR), which
includes our employees and contracted employees, as a measureof our EHS performance and are driving to lower the LTR. In 2020
the coronavirus pandemic caused us to create new ways of working
and, in some cases, made work more difficult, potentially leading toincreased accidents. Additional work-related lost time illnesses anda 15% reduction in the number of hours worked due to “stay at home”
orders in many countries contributed to the elevated overall LTR.8
Molson Coors will continue to put people first, taking measures toprotect all our employees and contractors from injury and illness. Our
World Class Supply Chain initiative supports this goal, helping to drive
efficiencies and reduce losses in areas including health and safety.
Each brewery is accountable for delivering improvement against
our Total Incident Rate (TIR) metric. We will continue to evaluate our
performance and identify where we have opportunities for safety
improvements going forward.

Lost Time Rate

7

2018

2019

2020

0.38

0.40

0.83

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What
We Didin 2020

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41

Experienced an 80% increase in
the Lost Time Rate since 2016.
The increased LTR highlights ourneed to continue the focus andenergy on our journey to keep
everyone safe.

Safeguarding
Human Rights
We are committed to fostering open workplaces that
respect human rights, where employees are valued,
engaged and inspired to be the best they can be.
Our Employment Principles, which operate across all our operations
and entities in which we hold a majority interest, are informed andguided by recognized international standards on human rights,
including the Universal Declaration of Human Rights, the International
Labour Organization’s Declaration on Fundamental Principles andRights at Work and the UN Global Compact (UNGC). Our Modern
Slavery Statement published in accordance with the UK Modern
Slavery Act 2015 which sets out certain actions taken by Molson Coorsand its UK subsidiary, Molson Coors Brewing Company (UK) Limited,
can be found at molsoncoors.com.
We also expect our suppliers to meet certain human rights
expectations. These are set out in Our Standards for Business andSupply Partners and are included in applicable contracts.
We want to create workplaces where people are engaged, free torespectfully challenge the expected and perform at their very best
every day. It goes without saying that we are also committed todesigning safe and comfortable workplaces in which everyone istreated with respect, differences are valued and employee actions are
consistent with our standards and values.
We aim always to provide workplaces that are free from discriminationor physical or verbal harassment based on race, sex, color, nationalor social origin, religion, age, disability, sexual orientation or any otherstatus protected by applicable law.
All Molson Coors employees are required to comply with our Codeof Business Conduct Ethics and have access to our Compliancehelpline, where any concerns, including those related to human rights,
can be reported.

7 LTR is calculated by taking the number of lost time injuries and illnesses multiplied by
200,000 and divided by the number of hours worked.

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SocialMaintaining an
Ethical Supply Chain
Our suppliers are an integral part of our sustainability
journey. We continually work with them to ensure they
are embedding respect for human rights in their work,
while safeguarding our values.

SETTING THE STANDARD
FOR RESPONSIBILIT Y
We expect each supplier we partner with to reach minimum
compliance standards, as set out in our Standards for Suppliers
Policy. These requirements include our expectations on environmental
sustainability, fair employment, community responsibility, ethicalbusiness practices, human rights and sound commercial standards. We
believe these are foundational elements for an ethical supply chain.

PROACTIVELY IDENTIF YING RISKS
As one of the world’s largest brewers, with an extensive global sourcing
network, we aim to ensure every supplier we work with commits toethical and sustainable work. That’s why we have developed a fourstage process to screen, identify and monitor potential issues, such as
workers’ rights, the environment, health and safety, and business ethics.
We track supplier performance through the Supplier Ethical Data
Exchange (Sedex) monitoring service. As part of our due diligenceprocess, we screen our supply base annually to identify key
suppliers, who are then asked to complete a Sedex Self-Assessment
Questionnaire (SAQ) to assess their potential risks.
If any risks or issues of concern emerge, we work with the supplier toaddress them and develop remediation plans.

SUSTAINABLE PROCUREMENT PRACTICES
We believe sustainable procurement is an integral part of doing
business the right way. We adopt best practice standards thatenable us to balance economic development, social development
and environmental protection with our commercial needs for quality,
reliability, innovation and value.
We actively monitor regulations regarding genetically modified
organism (GMO) ingredients in all our markets and are committed
to complying with health, food, safety, labeling and ingredientsregulations. Additionally, we aim to work with suppliers that share ourambitions, which allows us to jointly:• Meet and exceed our customers’ growing expectations that we
procure ethically and responsibly• Implement better risk management by protecting our interests
throughout the supply chain• Drive efficiency and continuous innovation through our supply chains
In 2019, we updated our Our Standards for Business and Supply Partners
document, which sets out our minimum compliance requirements for
suppliers, which we expect all Molson Coors suppliers to adopt.

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42

Involved 75% of key
suppliers in third-party risk
assessment screening

What
We Didin 2020

Our Four-Step Supplier Monitoring Process
STAGE 1SCREENING

We annually identify key suppliers in our supply
chain. This focuses on several factors, including
product category, production location, criticality
and annual spend.

STAGE 2IDENTIFICATION

Key suppliers are asked to complete a Sedex SAQ
to gather further information on any potential risks
in areas of employment standards and humanrights, ethical business practices and regulatorycompliance, business continuity preparedness andkey environmental indicators. Additionally, during
the tendering process, suppliers are requested toprovide data and responses to questionnaires onareas of concern within each category.

STAGE 3

SUPPLIER DEVELOPMENT

We work with our suppliers to address any
concerns and provide guidance to enable
continuous improvement against our standards.
We do this by having active discussions with our
suppliers, creating and managing remediationplans, when necessary, and conducting regularbusiness reviews with key suppliers.

STAGE 4

AUDIT

Suppliers identified as representing the highest
potential risk during the SAQ process are required
to undergo a third-party audit. After an audit
is conducted and all findings are recorded, acorrective action plan is established, which aims
to ensure that minimum expectations are being
met and that risks are being addressed. If an
agreement with the supplier cannot be reached,
we will consider terminating the contract.

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Governance
Upholding Ethics
and Integrity
It is important to us to act with integrity in everything
we do.

OUR CODE OF BUSINESS CONDUCTAt the heart of our ethical culture sits our Code of Business Conduct.
The Code underpins our ethics and compliance program which
includes policies, training, communication, monitoring and auditing
procedures on a range of topics, such as:• Accurate books and records• Alcohol responsibility• Anti-bribery and corruption• Anti-discrimination and harassment• Competition• Conflicts of interest• Data privacy• Gifts and entertainment• Insider trading• Social media• Speaking up
All our employees are required to uphold the Code, which is available
in 12 languages.8 Training in the Code is mandatory, with new
employees required to complete this as part of their onboarding. In
addition, refresher training for existing employees is provided every
two years. We also require employees to affirm that they have read
and will comply with the Code. Any potential conflicts of interest must
be disclosed via an online Conflict of Interest Disclosure Form forapproval and to ensure a record of each disclosure. We also expect
employees who have any concerns about possible violations of theCode to raise such concerns through the appropriate channels.

8 The Code is published in the following languages:
Bulgarian, Croatian, Czech, English, French,
Hungarian, Italian, Japanese, Montenegrin,
Romanian, Serbian and Spanish.

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ANTI-BRIBERY AND CORRUPTION
Molson Coors does not approve of bribery and corruption by
employees or anyone acting on the company’s behalf. We require
all our employees and business partners to adhere at all times toethical, transparent business practices. Through our anti-bribery
and corruption program, employees receive training in our policy
and its operation. This is supported by online tools to help employees
report potential bribery and corruption. Gifts and entertainment
can be recorded and receive pre-approval via an online Gifts andEntertainment Register, in accordance with local policies. We help
our business partners understand our approach to doing businessthe right way through compliance with due diligence procedures andstandard contract clauses. We also conduct audits – both internallyand externally – to monitor compliance.

ETHICS AND COMPLIANCEHELPLINE
Access to our 24-hour Ethics and Compliance helpline is provided to all
employees. It is administered by a third-party provider, and enables
employees, business partners and other stakeholders to ask questions
or raise concerns in confidence and/or anonymity. Users can contact
the helpline by phone or internet, and in their native language. All suchapplicable questions and issues raised are addressed by the Molson
Coors Ethics and Compliance Office, and both the law and company
policy prohibit any retaliation against anyone who raises a concern ingood faith.

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GovernanceOverseeing Our
Sustainability Efforts
Our Imprint is at the heart of our company culture
and the values we strive to uphold. A strong governancestructure ensures we are making progress against ourgoals and doing so responsibly and transparently.
Oversight of our sustainability efforts and disclosure, including Our
Imprint performance, is the responsibility of Molson Coors’ Board of
Directors. As outlined in the Charter of the Board’s Audit Committee,
the Audit Committee assists the Board in overseeing our corporate
responsibility, alcohol policy and sustainability efforts, and related
performance. As part of the oversight of sustainability topics, theBoard and Audit Committee regularly review performance against
our 2025 goals, sustainability trends and stakeholder views. Our Board
is responsible for overseeing our ERM program, including risks andopportunities associated with climate change.
We launched a Sustainability Leadership Council in 2018, bringing
together leaders from both business units in multiple functions toprovide comprehensive oversight of sustainability topics acrossour global organization. We have since evolved the group into
subcommittees to focus on several emerging ESG issues. We currently
operate separate sustainability subcommittees, such as the Packaging
Risk Council, Corporate Affairs Council and Carbon/Water Council,
which meet more frequently to address trending topics and challenges.
Matters related to climate change, including extreme weather events,changing weather conditions and other events that could be caused
or exacerbated by climate change, are an essential component of
our sustainability strategy. A cross-functional team, formed of ourEnterprise Risk Management, Legal and Finance teams, is responsiblefor developing various climate-related scenarios which pose risks to
Molson Coors in line with TCFD recommendations. The developmentof governance and comprehensive risk mitigation efforts in response
to TCFD-related analyses is overseen by the Board and the Audit
Committee, led by the Sustainability & Enterprise Risk Management
team and managed by several parts of our organization.

Aligning
Remuneration
With ESG
To build a culture of accountability, we must act with integrity, honoring
our commitments and working responsibility into everything we do.
Included in this is our dedication to delivering on Our Imprint 2025
goals for our people and our planet.
Our CEO’s 2021 performance goals include ESG oversight, with several
Leadership Team members responsible for achieving different aspectsof Our Imprint 2025 goals, including our Chief Supply Chain Officer,
Chief Legal & Government Affairs Officer and Chief People & Diversity
Officer, together with their functional teams.
Our Imprint performance is reinforced by our WCSC, which helps drive
efficiencies and reduce losses in areas like health and safety, andenvironmental sustainability.
Each brewery that is involved in WCSC is accountable for delivering
improvements against the following metrics:•

Energy Usage Ratio (MJ/hl)•

Water Usage Ratio (hl/hl)•

Total Incident Rate (TIR)MOLSON COORS ESG REPORT 2021

INTRODUCTIONP EO P L E

GovernanceManaging
Enterprise Risks
Enterprise risk management (ERM) is the culture, capabilities andprocesses used by Molson Coors to mitigate risks, and create andpreserve value.

INTEGRATED APPROACH
We manage enterprise risk within Molson Coors through a structured
framework that guides assessments of our exposure to risks. The
assessment process is overseen by the Vice President of Legal
Operations, who consolidates ERM evaluations from individuals
responsible for risk management oversight at executive and regional
levels. An analysis using the ERM process is performed every six
months to identify emerging risks for which we can develop mitigationplans, with the results reported to our Leadership Team, our Audit
Committee and our Board of Directors.

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ASSESSING AND ANALYZING RISK
Molson Coors uses a combination of interviews, benchmarking andexternal analysis to conduct initial qualitative assessments. Risk
interactions are evaluated for the highest risks, and assessments arerefined with the CEO, Chief Financial Officer (CFO) and Chief Legal& Government Affairs Officer (CLO). Our ERM system, which is basedon the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) Enterprise Risk Management – Integrating with
Strategy and Performance framework, drives a collaborative andholistic approach involving ERM, strategy, business continuity andinternal audit.
Molson Coors has established scales for rating enterprise risks in termsof impact, likelihood, velocity and control:• Impact: the extent to which a risk event might affect the enterprise• Likelihood: the prospect that a given risk will occur• Velocity: the speed at which the risk could deteriorate• Control: the degree of control the organization has over therisk occurring
Risks are ranked according to their combined scores for likelihoodand impact, and categorized as Tier 1, Tier 2, Tier 3 and Watch List.
Those in the “Very High” risk levels are designated as Tier 1 risks,meaning they will be reported and monitored by the Leadership
Team, Audit Committee and Board of Directors. Risks on the Watch
List are either new, trending higher than previous reporting periods
or have increased uncertainty. Each enterprise risk has one principal
Leadership Team Owner, who coordinates the mitigation efforts andreports progress.

DISCLOSURES
Molson Coors discloses our various business risks on our Form 10-K.
They include ESG-related risks, such as concerns over climate change,
availability of quality water, the coronavirus pandemic and people- or
culture-related risks.
To read more about our risks, visit our Form 10-K here.

MOLSON COORS ESG REPORT 2021

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Governance
Ensuring Responsible
Public Policy
Molson Coors actively engages in the political environment to
inform public policymakers on issues and practices that relate to ourcompany and industry. We also promote the responsible promotion
and consumption of our products. The Governance Committee of our
Board of Directors oversees corporate and political action, including
committee political contributions, and receives annual reports onpolitical giving.
In February 2021, our Board of Directors adopted an enhanced PoliticalContribution Policy, outlining Molson Coors’ policies, procedures andphilosophy regarding political contributions and activities. The updated
Policy reaffirms broad criteria that drive decisions regarding politicalcontributions by employee-funded entities, corporate contributions
where allowed by law, and other lobbying and advocacy efforts.
The updated Policy also reiterates that political spending will not be
influenced by the political preferences of any individual director, officer
or employee.
In performing these activities, Molson Coors conducts its businessethically and in compliance with applicable law. Our business rules
state that only designated company employees may engage inpublic policy work on behalf of Molson Coors, and they must adhereto specific registration, ethics and disclosure requirements in theirrespective jurisdictions. In addition, our Code of Business Conduct
provides guidance on political contributions for employees.
In the US, political contributions support candidates, political parties
and committees at both federal and state levels, aligned to a set ofgiving criteria that is focused on a pro-company agenda. In 2020,
our contributions to candidates for state office, state political entities
and ballot initiatives totaled approximately $371,875. We follow
rigorous internal protocols, legal policies and external controls toensure all political contributions are made and reported in strict
compliance with appropriate federal, state and local laws andregulations. The amounts of contributions made to candidates orparties at state level are generally publicly available on the respective
state’s website as disclosures on the campaign finance reports
required by that jurisdiction.
Molson Coors also operates the Molson Coors Political Action Committee(Molson Coors PAC), which made contributions to candidates totaling
approximately $63,500 in 2020, through voluntary contributions from a
restricted class of eligible employees. The Molson Coors PAC is registeredwith the Federal Election Commission (FEC) and files monthly reports
with the FEC or as otherwise prescribed by federal law. These reports
are publicly available at www.fec.gov and provide an itemization of the
Molson Coors PAC receipts and disbursements, including contributions
to candidates, party committees and any other organizations.
Our total political donation in Canada was approximately
CAD$2,000 in 2020. For further details, please see the relevant
provincial websites.

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Developing a
Transparent Tax
Strategy
The taxes we pay as a responsible business can be a significant partof our economic contribution to the jurisdictions all over the world inwhich we operate. The management of our tax affairs is governedon principles aligned with our global commercial, sustainability andcorporate governance practices, including a commitment to tax
compliance and transparency.
We consider tax efficiencies when undertaking commercial activity,with the aim of enhancing shareholder value and meeting the
expectations of our consumers and employees. We proactively manage
tax risk and develop relationships with tax authorities based ontransparency, cooperation and respect. Beyond the taxes we pay, we
support governments and communities around the globe through theemployment of our talented workforce in our businesses and across ourwider value chains. We also support governments, other businesses andcivil society through investment in people skills and the advancement of
new technologies to manufacture and promote our products.

MOLSON COORS ESG REPORT 2021

INTRODUCTION

INDICESGRI, SASB, TCFDP EO P L E

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INDICES47

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INDICES48

GRI Content Index
This report has been prepared in reference to the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards.
For a detailed explanation of the indicators, visit the GRI website https://www.globalreporting.org/standards/.
GENERAL DISCLOSURESI N D I C ATO R D E S C R I P T I O N
O R G A N I Z AT I O N A L P R O F I L E

LO C AT I O N A N D N OT E S

102-1

Name of the organization

Environmental, Social and Governance (ESG) Report (pg. 3)

102-2

Primary brands, products, and/or services

ESG Report (pg. 5); 2020 Annual Report on Form 10-K

102-3

Location of organization's headquarters

2020 Annual Report on Form 10-K

102-4

Number of countries where the organization operates,
and countries with major operations or relevant tosustainability issues

ESG Report (pg. 5); 2020 Annual Report on Form 10-K

102-5

Nature of ownership and legal form

2020 Annual Report on Form 10-K

102-6

Markets served

2020 Annual Report on Form 10-K

102-7

Scale of the reporting organization

2020 Annual Report on Form 10-K

102-8

Employees by employment contract and gender

ESG Report (pg. 13)

102-9

Description of supply chain

Our supply chain starts in the barley and hops fields where our farmers
supply our agricultural brewing ingredients. Our packaging, such as bottles
and cans, also makes up a large portion of our carbon footprint, which is
why we work closely with our packaging suppliers to reduce their carbon
emissions. We also work with transportation suppliers to drive efficiencies in
our transportation and logistics network.

102-10Significant changes to size, structure, or ownership2020 Annual Report on Form 10-K

102-11

Whether and how the precautionary approach or
principle is addressed

ESG Report (pg. 16–30)

102-12External initiatives

ESG Report (pg. 3)

102-13

Membership of associations

ESG Report (pg. 3); SDG Impact Report (pg. 11)

S T R AT E GY
102-14CEO statement

ESG Report (pg. 4)

ETHICS AND INTEGRITY
102-16

Organization’s values, principles, standards and norms of ESG Report (pg. 43); Code of Business Conduct
behavior such as codes of conduct and codes of ethics

GOVERNANCE
102-18Governance structure

ESG Report (pg. 44); Molson Coors corporate website

102-20Executive-level responsibility for economic,
environmental, and social topics

ESG Report (pg. 44); Molson Coors corporate website

102-21

Consulting stakeholders on economic, environmental,
and social topics

ESG Report (pg. 8); Molson Coors corporate website

G4 – 37

Report the internal and external mechanisms for seeking ESG Report (pg. 46)
advice on ethical and lawful behavior, and mattersrelated to organizational integrity, such as helplines oradvice lines

S TA K E H O L D E R E N G A G E M E N T
102-40

Stakeholder groups engaged by the organization

ESG Report (pg. 8); Molson Coors corporate website

102-41

Percentage of employees covered by collective
bargaining agreements

ESG Report (pg. 38)

102-42How stakeholders are identified and selected

ESG Report (pg. 8); Molson Coors corporate website

102-43

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

ESG Report (pg. 8); Molson Coors corporate website

102-44Key concerns raised through stakeholder engagement,
and how the organization responded

Molson Coors corporate website

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I N D I C ATO R D E S C R I P T I O NREPORTING PRACTICE

LO C AT I O N A N D N OT E S

102-45

Entities included in consolidated financial statements
and if any are not in report

ESG Report (pg. 3); 2018 Annual Report on Form 10-K

102-47

Material aspects identified

Molson Coors corporate website

102-48

Effect of restatements

n/a102-49Significant changes from previous reporting period

Our Imprint Report (pg. 2); ESG Report (pg. 3)

INDICES49

REPORT PROFILE
102-50

Reporting period

ESG Report (pg. 3)

102-51

Most recent report

ESG Report (pg. 3)

102-52

Reporting cycle

ESG Report (pg. 3)

102-53

Contact for sustainability report

For questions and comments, please email
corporate.responsibility@molsoncoors.com

102-54Claims for reporting in accordance with the GRI
Standards

ESG Report (pg. 3)

102-55GRI Content Index

ESG Report (pg. 48); Molson Coors corporate website

102-56External assurance

Independent assurance of environmental, health and safety performance
data

MATERIAL TOPICSI N D I C ATO R D E S C R I P T I O NECONOMIC

LO C AT I O N A N D N OT E S

Economic Performance
201-1

Direct economic value generated and distributed

2020 Annual Report on Form 10-K

201-2

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

2018 CDP submission

ANTI-CORRUPTION
205-2

Communication and training on anti-corruption policies
and procedures

ESG Report (pg. 43)

E N V I R O N M E N TA L
Energy302-1

Energy consumption within the organization

ESG Report (pg. 24)

302-3

Energy intensity

ESG Report (pg. 24)

302-4

Reduction of energy consumption

ESG Report (pg. 24)

Total water withdrawal by source

ESG Report (pg. 18)

305-1

Direct greenhouse gas (GHG) emissions (Scope 1)

ESG Report (pg. 25)

305-2

Energy indirect GHG emissions (Scope 2)

ESG Report (pg. 25)

305-3

Other indirect GHG emissions (Scope 3)

ESG Report (pg. 25)

305-4

GHG emissions intensity

ESG Report (pg. 25)

305-5

Reduction of GHG emissions

ESG Report (pg. 25)

Water
303-1
EmissionsEffluents and Waste
306-2

Total weight of waste by type and disposal method

ESG Report (pg. 29)

Environmental Compliance
307-1

Monetary value of significant fines and total numberof non-monetary sanctions for non-compliance withenvironmental laws and regulations

Our definition of a violation, i.e., a violation occurs when an authorized
body (e.g., a governmental body, independent commercial or noncommercial regulator) determines that a law, regulation, code, etc., related
to environmental or ecological issues has been breached and the fine or
penalty is over $10,000. In 2020, we received one fine exceeding $10,000
related to a 2019 technical breach of the US Accidental Release Prevention
program requirements. Although we did not experience any CriticalEnvironmental Incidents in 2020, the historical number of incidents in 2019has been changed from one to two.

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I N D I C ATO R D E S C R I P T I O N
SOCIALPLANETO U R F O U N D AT I O N A L C O M M I T M E N T S

INDICESLO C AT I O N A N D N OT E S

Employment
401-1

Total number and rates of new employee hires andemployee turnover by age group, gender and region

Total turnover in ESG Report (pg. 39)

Occupational Health and Safety
403-2

Type of injury and rates of injury, occupational diseases,
lost days, and absenteeism, and total number of workrelated fatalities, by region and by gender

Lost Time Rate (LTR) reported in ESG Report (pg. 41)
We tragically lost six employees at the Milwaukee, Wisconsin brewery andone contractor at the Golden, Colorado brewery. The COVID-19 pandemic
also caused an increase in work-related lost time illnesses, leading to anelevated Lost Time Rate.

Training and Education
404-1

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

Average training hours in ESG Report (pg. 38)

404-2

Programs for skills management and lifelong learningthat support the continued employability of employees
and assist them in managing career endings

ESG Report (pg. 38)

Diversity and Equal Opportunity
405-1

ESG Report (pg. 13)
Composition of governance bodies and breakdown of
employees per employee category according to gender,
age group, minority group membership and otherindicators of diversity

Local Communities
413-1

Percentage of operations with implemented local
community engagement, impact assessments, anddevelopment programs

100% of our large breweries and offices implemented local community
engagement.
ESG Report (pg. 36).

Public Policy
415-1

Total value of political contributions by country

ESG Report (pg. 46)

Customer Health and Safety
416-1

Percentage of significant product and service categories All of our products address alcohol responsibility and drunk driving issues
with audiences above the legal drinking age. More information can befor which health and safety impacts are assessed forfound in our ESG Report (pg. 31–35).
improvement

Product and Service Labeling
417-1

Type of product and service information required by
the organization’s procedures for product and service
information and labeling, and percentage of significant
products and service categories subject to suchinformation requirements

Our Imprint Report (pg. 32)

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Communication on Progress
UN GLOBAL COMPACTThe UN Global Compact (UNGC) and CEO Water Mandate are consistent with our global commitment to sustainability. We continue to support
the Ten Principles of the UNGC and the six core elements of the CEO Water Mandate, and are committed to making them part of our corporate
strategy, culture and day-to-day operations.
The table below indicates where descriptions of the practical actions we have taken to implement the UNGC and CEO Water Mandate can befound in our public reporting.
I N D I C ATO R D E S C R I P T I O N
U N G LO B A L C O M PA C T

LO C AT I O N A N D N OT E S

Issue
Area

Further Information

Human
RightsPrinciple
Principle 1: Businesses should support and respect theprotection of internationally proclaimed human rights
Principle 2: Businesses should make sure that they are
not complicit in human rights abuses

ESG Report (pg. 41); Employment Principles; UK Modern Slavery Act
Statement

Principle 3: Businesses should uphold the freedom of
association and the effective recognition of the right tocollective bargaining
Labor

Principle 4: The elimination of all forms of forced andcompulsory labor

ESG Report (pg. 41); Employment Principles; UK Modern Slavery Act
Statement

Principle 5: The effective abolition of child labor
Principle 6: The elimination of discrimination in respectof employment and occupation
Principle 7: Businesses should support a precautionary
approach to environmental challenges
Environment

Principle 8: Undertake initiatives to promote greater
environmental responsibility

ESG Report (pg. 16–29); Environment, Health and Safety Policy; Agricultural
Brewing Ingredients Policy; Packaging Policy

Principle 9: Encourage the development and diffusion ofenvironmentally friendly technologies
AntiPrinciple 10: Businesses should work against corruption
Corruption in all its forms, including extortion and bribery

ESG Report (pg. 43); Code of Business Conduct

C E O WAT E R M A N D AT E
Commitments

Further Information

Direct Operations

ESG Report (pg. 17); SDG Impact Report (pg. 7)

Supply Chain and Watershed Management

ESG Report (pg. 19); SDG Impact Report (pg. 7)

Collective Action

ESG Report (pg. 19); SDG Impact Report (pg. 7)

Community Engagement

SDG Impact Report (pg. 7)

Public Policy

ESG Report (pg. 46); SDG Impact Report (pg. 7)

Transparency

Our ESG Report discusses our water stewardship targets, practices and current performance. Our
water data is assured according to ISAE 3000 by a third party, Corporate Citizenship. We reporton water and climate risk in our 2020 Annual Report on Form 10-K.

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SASB Disclosures 2021
ACCOUNTING METRICE N E R GY M A N A G E M E N T

UNIT OF MEASURE

LO C AT I O N

Total energy consumed, percentage grid electricity,
percentage renewable

Gigajoules (GJ), Percentage(%)

ESG Report (pg. 24)(1) Total water withdrawn and (2) total water consumed,
percentage of each in regions with High or ExtremelyHigh Baseline Water Stress

Cubic meters (m3),Percentage (%)

ESG Report (pg. 18)

Discussion of water management risks and descriptionof management strategies and practices to mitigate
those risksn/a

ESG Report (pg. 17–21)

Number of advertising impressions, percentage madeon individuals above the legal drinking age

Number, Percentage (%)

ESG Report (pg. 31)

Notices of violations received for non-conformancewith industry and regulatory marketing and/or labelingcodes

Number

ESG Report (pg. 31)

Amount of legal and regulatory fines and settlements
associated with labeling and/or marketing practices

US dollars ($)

ESG Report (pg. 31)

Description of efforts to promote responsible
consumption of alcoholn/a

ESG Report (pg. 31–35)

WAT E R M A N A G E M E N T

RESPONSIBLE DRINKING & MARKETING

PA C K A G I N G L I F E C YC L E M A N A G E M E N T(1) Total weight of packaging, (2) percentage made from Metric tons (t), Percentage
recycled or renewable materials and (3) percentage(%)
that is recyclable or compostable

ESG Report (pg. 27)

Description of strategies to reduce the environmental
impact of packaging throughout its lifecyclen/a

ESG Report (pg. 26–27)

Percentage of beverage ingredients sourced fromregions with High or Extremely High Baseline Water
StressPercentage (%) by spend

ESG Report (pg. 18)

Suppliers’ social and environmental responsibility audit
conformance:(1) major non-conformance rate and associatedcorrective action rate and(2) minor non-conformance rate and associatedcorrective action rate

Rate

ESG Report (pg. 42)

List of priority beverage ingredients and discussionof sourcing risks due to environmental and social
considerations

n/a

ESG Report (pg. 42)

E N V I R O N M E N TA L & S O C I A L I M PA C T S O FI N G R E D I E N T S U P P LY C H A I N S

INDICES52

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TCFD Disclosures 2021
TO P I C A N D D I S C LO S U R E
GOVERNANCE:LO C AT I O N

A. Describe the board’s oversight of climate-related risks and opportunities.

ESG Report (pg. 44)

B. Describe management’s role in assessing and managing risks and opportunities.

ESG Report (pg. 44)

S T R AT E GY:
A. Describe the climate-related risks and opportunities the organization has
identified over the short, medium and long term.

CDP Report – Risks and Opportunities

B. Describe the impact of climate-related risks and opportunities on theorganization’s businesses, strategy, and financial planning.

CDP Report – Risks and Opportunities

C. D escribe the resilience of the organization’s strategy, taking into considerationdifferent climate-related scenarios, including a 2°C or lower scenario.

CDP Report – Risks and Opportunities

RISK MANAGEMENT
A. Describe the organization’s processes for identifying and assessing climate-related ESG Report – Enterprise Risk Management section (pg. 45)
risks.
B. Describe the organization’s processes for managing climate-related risks.

ESG Report – Enterprise Risk Management section (pg. 45);
CDP ReportC. D escribe how processes for identifying, assessing, and managing climate-relatedrisks are integrated into the organization’s overall risk management.

ESG Report – Enterprise Risk Management section (pg. 45);
CDP Report

M E T R I C S A N D TA R G E T S
A. Disclose the metrics used by the organization to assess climate-related risks andopportunities in line with its strategy and risk management process.

ESG Report (pg. 23-25, pg. 44)

B. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG)
emissions, and the related risks.

ESG Report (pg. 25)

C. D
 escribe the targets used by the organization to manage climate-related risks
and opportunities and performance against targets.

ESG Report (pg. 9–15)

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This report contains “forward-looking statements” within the meaning of the US federal securities laws. Generally, the words “believe,” “expect,”, “intend,” “anticipate,” “project,” “working,” “striving,” “will,” “aim”
and similar expressions identify forward-looking statements, which generally are not historic in nature. Forward-looking statements include those relating to the company’s investments in socioeconomic
programs; water management and other environmental efforts; reuse and recycling measures; and sourcing of raw materials. Although the company believes that the assumptions upon which its
forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially fromthe company’s present projections and expectations are disclosed in the company’s filings with the Securities and Exchange Commission (“SEC”). These factors include, among others, the impact of thecoronavirus pandemic, the health of the beer and beverage industry and our brands in our markets; economic conditions in our markets; stock market and commodities performance; crop yields; consumer
demand; global economic conditions; changes in laws and regulations; development of new technology; cost and availability of resources, raw materials, commodities and packaging materials; force
majeure events; or the loss or closure of a major brewery or other key facility; changes in our supply chain system; our ability to implement our strategic initiatives; success of our joint ventures; risks relating
to operations in developing and emerging markets; the impact of climate change and the availability and quality of water; the ability to attract, hire and retain qualified personnel; future financial andoperating performance within and related to the industry; our ability to maintain brand image, reputation and product quality; and other risks discussed in our filings with the SEC. All forward-looking
statements in this report are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which
speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.