SABMiller Position Paper - Water

Make more beer but use less water

1. The issues

Water scarcity and quality are becoming increasingly critical issues of immediate relevance to SABMiller, given the
water-intensive nature of the beverage industry, our reliance on water-intensive raw materials and the fact that some
of our operations are in water-stressed regions. According to the United Nations, by 2025 more than three billion
people will be living in water scarce areas. This will include a significant proportion of our customers, employees and
communities.

There is increasing demand on water resources to meet the needs of a growing and wealthier world population,
especially in emerging countries, where increased meat consumption and larger markets for industrial goods are
leading to increased water use. Yet at the same time in developing nations over 1 billion people still lack access to
clean, safe water and 2.2 million people die each year from diseases associated with dirty water and poor sanitation.
The urgent need to address these problems is expressed as part of the Millennium Development Goals: to reduce
by half the proportion of people without access to safe drinking water by 2015. Many of the countries in which we
operate will face both increasing water scarcity and increasing demand for water, particularly if this goal is to be met.

The issue of water scarcity is not confined to developing countries and will become more complex, and less
predictable, as the impact of climate change is felt. In terms of supply, changing rainfall patterns could translate into
reductions in river flows and/or the natural recharge of aquifers. More importantly, climate change may also affect the
ecological structures which keep the integrity of water systems intact.

Water scarcity will increase the focus on the use of wastewater as a resource, with treated wastewater being either
recycled within production facilities or used more efficiently by the next user, whether agricultural or industrial.

In response to water scarcity it is expected that water prices may rise and water allocations will become more
critical, particularly in agriculture. Water restrictions will lead to a greater efficiency of use as agriculture, domestic
and business users within communities all seek to access the resources they need. National and local governments
have an important role to lead multi-stakeholder processes which recognise looming water scarcity and develop
equitable solutions acceptable to all.

2. SABMiller’s response and commitments

Water is one of SABMiller’s top sustainable development priorities. As a founding signatory of the United Nations
CEO Water Mandate, SABMiller recognises that we have a responsibility to promote responsible water use
throughout our operations, and encourage our suppliers to do the same. We have invested significant management
time at the local and global level in understanding the challenges of water scarcity and quality and what they may
mean for our business, but there is more to do.

SABMiller has set itself the demanding target of reducing water use per litre of beer by 25% by 2015. This initiative
will save around 20 billion litres of water every year by 2015 - enough to fill eight thousand Olympic-sized swimming
pools.

“In an increasingly water constrained world it is critical that we become as efficient as possible, whilst working with
communities to protect water resources”, says SABMiller CEO Graham Mackay, “This is an extremely challenging,
but achievable target, and sets a new industry benchmark.” By 2015 SABMiller aims to reduce its water consumption
to an average of 3.5 litres used to make a litre of beer. In 2008 this figure was 4.6 litres; the industry average is 5
litres.

SABMiller Position Paper - Water March 2009

 We also recognise that water issues are by nature cross-community and cross boundary, which therefore cannot
be managed simply within the fence lines of our own operations. Therefore we engage in local dialogues on water
issues, we contribute to public policy discussions to ensure governments manage water resources efficiently and
sustainably, and we aim to report our use and management of water issues transparently. Solutions to local water
challenges are usually best provided through partnerships with NGOs, communities, local governments and other
businesses, and we will strive to build long term sustainable partnerships to tackle local water issues.

Most importantly, our water footprinting work reveals that the vast majority of water used in the value chain of a litre
of beer is used in the agricultural cultivation phase. The irrigated water used in this phase may be a factor of ten or
more of our own water use. Therefore understanding which agricultural areas face risks of water scarcity and then
working with farmers to encourage them to use water more efficiently is a priority.

SABMiller’s water strategy takes a holistic, whole value chain approach, and is built around the ‘5Rs of Water
Responsibility’. This approach is shown in the diagram below.

The 5 Rs enable each of our operations around the world to focus on specific issues upstream, downstream and in
within our operations to seek to:

pRotect: Influence farmers to ensure responsible water use and understand the watersheds we operate breweries
and bottling plants within. Where appropriate replenish water resources through rainwater harvesting and
groundwater recharge.

Reduce: Employ new processes and change behaviour to reduce water consumption within our plants whilst
achieving the same high quality of product

Reuse: Collect waste water streams within facilities and re-use appropriately

Recycle: Investigate and employ new technologies to recycle water for appropriate use within the plant

Redistribute: Provide local communities with clean water through community investment programmes and treat
waste water so it can be used for irrigation or other purposes.

This Position Paper represents aspirations rather than binding commitments as the contents are forward looking and
involve certain risks and uncertainties which are difficult to predict.

SABMiller Position Paper - Water March 2009