PROCUREMENT POLICY
Policy Owner: Ian Roberts (Group Supply Chain Director)
Version: 2.0
Applies from: 1 June 2020

1. Purpose
Lion manages its procurement of goods and services to ensure we maximize value, quality, andprevent risk whilst maintaining high standards of corporate responsibility.
At all times Lion will:Develop strong and productive relationships with suppliers to deliver value for money, quality
goods and services and sustainable benefits;

Act fairly and ethically in its relationships with both potential and established suppliers;

Encourage innovation and continuous improvement with its suppliers;Support economic development, social outcomes, inclusion and diversity and sustainability
through our purchasing choices.

This Policy and associated Lion Way for Procurement provide key principles and guidance foranyone buying goods and services on behalf of Lion. It is the responsibility of any personpurchasing on behalf of Lion, including contractors to Lion, to be familiar with the requirements set
out in this Policy and the associated Lion Ways. These documents are to be read in conjunction
with one another.

2. Scope
This Policy applies to employees of all Lion Business Units except for New Belgium Brewing.
This policy may be updated over time, as such you are required regularly refamiliarise yourself withthis policy to ensure you remain compliant.

3. Policy Review and Change Log (minimum review 3 Years)
VersionDate of last
Review

Reviewed By

Approved By

Summary of Changes

1.025 January
2017

Wayne Boxshall(Procurement &SupplyDirector)

Ian Roberts(Group SupplyChain Director)

Initial Release

2.0

1 June2020

Wayne Boxshall(Procurement &SupplyDirector)

Ian Roberts(Group SupplyChain Director)

Updated in new template
Added Lion Way for Procurement

4. Consequences of Breach of Policy
Lion team members must comply with this Policy at all times.

Page 1The master copy of this policy is on the Lion Policies Hub

PROCUREMENT POLICY
Policy Owner: Ian Roberts (Group Supply Chain Director)
Version: 2.0
Applies from: 1 June 2020

If a team member is found to have breached this Policy, they may be subjected to disciplinary
action (up to and including termination of employment). The type and severity of the disciplinary
action will depend upon the circumstances of the case and the seriousness of the breach.
Agents or contractors (including temporary contractors and third party labour hire) of Lion who arefound to have breached this Policy may have their contracts with Lion terminated, or not renewed.
In circumstances where a team member’s behaviour or conduct may involve a breach of any
Australian law, Lion may notify the police or other relevant government authority.

5. Who Do I Contact if I Have Questions on This Policy
Please contact either the Procurement Strategy and Best Practice Leader (currently RebeccaLoch) or the Procurement & Supply Director (currently Wayne Boxshall).

6. Policy
Lion is committed to doing the right thing for the long term. To deliver sustainable commercial
outcomes and corporate responsibility in the procuring of goods and services, we will promote ourpractices across the organization and build long-term productive relationships with our suppliers.
Implementing this policy will help us to reduce our environmental impact, improve the efficiency ofour business, reduce costs, assist the development of new products and markets, foster stronger
working relationships with our suppliers, and provide leadership in the community. It is theresponsibility of any person purchasing on behalf of Lion, including contractors to Lion, to befamiliar with this Policy and the requirements set out in relevant Lion Ways.
Lion’s Procurement Policy captures our commitment through 3 core principles:
1. Building strong commercial outcomes & productive partnerships
2. Promoting Human Rights and Ethical Sourcing
3. Promoting sustainable (environmental, social and inclusive) sourcing practices

6.1••••••Page 2

Build strong commercial outcomes and productive partnershipsthrough:Ensuring we conduct our procurement processes in a manner that is ethical, fair and open,
whilst respecting the confidential information of suppliers;
Working with our suppliers in accordance with our core values to improve our working
relationships;
Seeking feedback from suppliers on Lions’ own performance and procurement practices;
Providing constructive feedback to our own suppliers to build capability;
Evaluating purchases with consideration for total lifetime cost and impact of ownership;
Ensuring our suppliers have in place accredited food safety and quality management
systems, ensuring its products meet or exceed customer expectations and regulatory
requirement of the markets in which products are sold;
The master copy of this policy is on the Lion Policies Hub

PROCUREMENT POLICY
Policy Owner: Ian Roberts (Group Supply Chain Director)
Version: 2.0
Applies from: 1 June 2020

••

6.2

Ensuring our suppliers have robust and transparent systems in place to manage business
continuity and compliance requirements;
Encouraging our suppliers to bring innovation to Lion and to continuously improve all
aspects of the supply relationship.

Promoting Human Rights and Ethical SourcingOutlined in our Lion Supplier Responsible Sourcing Code, Lion is committed to sustainablesourcing practices spanning human rights, the environment and business ethics. We will work with
our suppliers to promote decent working conditions for employees and ensure there are no
instances of forced and child labour and modern slavery in the supply chain within and beyond ourfirst-tier suppliers.
Suppliers and their suppliers must observe the rights of workers in accordance with relevant
national laws, International Labour Organisation (ILO) conventions and be aligned with the Ethical
Trading Initiative (ETI) base code.
In the promotion of human rights and ethical sourcing practices, Lion will seek to:• Purchase goods and services that are made in such a way to ensure human rights arerespected, social and sustainability responsible guidelines are fulfilled;• Consult with our suppliers and other stakeholders to raise their awareness andunderstanding of social responsibility issues;• Through tools such as SEDEX, understand how our goods and services are being supplied;• Ensure our suppliers have a formal safety management system that demonstrates
commitment to the health, safety and wellbeing of their people, contractors and visitors, asa minimum meeting all relevant legal requirements and industry standards.

6.3
•••

Page 3

Promote sustainable (environmental & social) sourcing through:Evaluating purchases with consideration for their total lifetime cost of ownership,environmental, inclusive & social impact;
Our suppliers having in place a robust environmental management system;
Giving preference to suppliers who:o Have in place and follow sustainable farming & agricultural practices;o Support greenhouse and energy consumption reduction programs across theirbusiness;o Have in place systems and programs to continuously reduce consumption of ‘finite‘resources such as water;o Have a commitment to stewardship programs that minimize impact on the environment& promote better social outcomes for traditionally underrepresented sectors of oureconomy. For example, Indigenous business, Women-owned business and Social
Enterprise;o Provide appropriate documentation to support any claims made e.g. recycled content,
low emissions, energy efficient, quality, sourcing origins, minority certification etc;

The master copy of this policy is on the Lion Policies HubPROCUREMENT POLICY
Policy Owner: Ian Roberts (Group Supply Chain Director)
Version: 2.0
Applies from: 1 June 2020o Are committed to increasing the recycled content of products and materials weoopurchase;
Are compliant with the Workplace Gender Equality Act 2012;
Have an Inclusion and Diversity Policy including gender, cultural/ethnic, sexual
orientation and minority communities.

7. Other Relevant Policies & Documents
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•Page 4

Safety & Wellbeing Policy – LION-0130
Food Safety & Quality Policy – LION-0104
Lion Environment Policy – LION-0035
Lion Supplier Responsible Sourcing CodeLion Way for Procurement
Conflict of Interest and Secondary Employment
Anti-Bribery and Corruption
Spending @ Lion Policy
Capital Works Management Policy

The master copy of this policy is on the Lion Policies Hub