Anheuser-Busch, Inc.
Transcription
Anheuser-Busch, Inc.
our commitment 2007 Corporate Social Responsibility Report 2 0 0 7 c o r p o r at e s o c i a l r e s p o n s i b i l i t y r e p o r t anheuser-busch, inc. table of contents Letter to Our Stakeholders 2 About the Company 3 Corporate social responsibility Overview 5 responsibility environment Anheuser-Busch is committed to providing quality products, to ensuring that we market them responsibly, and to being part of the solution to alcohol issues, including drunk driving and underage drinking. We focus our efforts on water conservation, energy conservation and renewable energy, recycling and packaging, wildlife habitat preservation, and accountability through our value chain. pa g e 7 pa g e 19 people community accountability When it comes to our employees, we strive to support inclusion, promote health and wellness, and provide a safe work environment, competitive compensation and benefits, and professional development opportunities. Our efforts focus on supporting organizations and causes related to education, health care and human services, minority leadership and economic development, civic, cultural enrichment and environmental stewardship. We are guided by our commitment to ethical business practices, our abidance by all applicable state and federal regulations, and our support of local and national economies through our tax and wage contributions. pa g e 35 pa g e 45 How to navigate this PDF document Page Navigation Navigate through this document using the Bookmarks that have been created for key pages. Additional Information This document contains hyperlinks to Web sites for additional information. By clicking on the underlined blue text, this additional information will automatically open in your default browser. pa g e 51 1 l e t t e r t o o u r s ta k e h o l d e r s anheuser-busch, inc. Letter to Our Stakeholders At Anheuser-Busch, we have a simple philosophy. We strive, in all we do, to ensure that we produce the highest quality products, provide the best consumer experience, and create maximum value for our shareholders. And while doing that, we also recognize our responsibility to improve the world where we do business. As we have now combined with InBev to become a part of Anheuser-Busch InBev, we are proud to play a meaningful role in the global corporate mission to become the Best Beer Company in a Better World. We are all citizens of the world — together — and together we must find ways to put social responsibility into action. It’s this commitment that we highlight in our 2007 Corporate Social Responsibility (CSR) Report. We have a long tradition of doing all we can to ensure that our products are enjoyed responsibly. Our responsibility initiatives, along with the work of many others, have helped significantly reduce drunk-driving fatalities and prevent underage drinking over the years. Since 1982, AnheuserBusch and our wholesalers across the country have invested more than threequarters of a billion dollars in responsibility efforts, a commitment no other alcohol company even comes close to matching. And our efforts in this area will continue long into the future. For more than a century, we’ve supported efforts to help improve the environment, and we pursue new technologies to help us in our four-pronged environmental strategy, which is to reduce, reuse, recycle and renew. In 1899, we began reselling leftover grains from the brewing process as animal feed in an effort to reuse byproducts of our production process, a practice that continues today. We were working on water conservation efforts as early as the 1940s as we sought to reduce consumption within our processes. Our breweries are largely powered by natural gas – the cleanest form of fossil fuel, and as this commodity cost rises, we’re exploring new methods for generating energy. Our Bio-Energy Recovery Systems at nine — soon to be 10 — of our 12 domestic breweries and one in China, convert wastewater from the brewing process into renewable energy that provides up to 15 percent of the energy needed. We’re proud to be the world’s largest operator of this technology. And this year, we partnered to start a new project where we’ll be using methane gas from a neighboring landfill to help power our Houston brewery. And we’re also exploring the use of solar and wind technology at our Fairfield, Calif., brewery and the use of solid fuel boilers at our Northeast breweries — all in an effort to be more energy efficient and meet the ambitious goals outlined in our report. 2 Beyond this, we continually work to reduce material used in our packaging, with significant success over the past several years. By simply reducing the diameter of our can lid, we’ve been able to save about 20 million pounds of aluminum per year. This, along with our aluminum recycling efforts where we recycle five cans for every four we package domestically, enables us to use less new aluminum, as well as less energy in production. Our social responsibility review would not be complete without considering our charitable donations and disaster relief efforts. In the past decade alone, Anheuser-Busch and its foundation have contributed more than $370 million to non-profit organizations. In the past two decades, we’ve also donated more than 63 million cans of fresh drinking water to victims of natural disasters — two million cans in just the past 18 months. In times of need, Anheuser-Busch has always been and will continue to be a source of support. All of these efforts are possible thanks to our great employees. By showing respect for our people through competitive compensation, benefits and a safe work environment, we tap into their innate desire to help our cause as a responsible corporate citizen. And our work has been noticed. For the fifth year in a row, Anheuser-Busch earned the No. 1 ranking in the beverage industry for social responsibility in FORTUNE magazine’s most admired companies U.S. and global lists. This is a time of excitement and change for our company, yet one constant remains — Anheuser-Busch’s social responsibility efforts that will support our dream of being the Best Beer Company in a Better World. David A. Peacock President, Anheuser-Busch, Inc. 2 0 0 7 c o r p o r at e s o c i a l r e s p o n s i b i l i t y r e p o r t 3 anheuser-busch, inc. About the Company Based in St. Louis, Anheuser-Busch holds a 48.5 percent share of U.S. beer sales. The company is one of the largest theme park operators in the country, a major aluminum can manufacturer and one of the world’s largest recyclers of aluminum cans. Our diverse business includes malt production, rice milling, real estate development, turf farming and transportation services. Major Operations Financials In 2007, net sales at Anheuser-Busch totaled $16.7 billion, an increase of 6.2 percent over 2006. The company’s worldwide beer production reached 128.4 million barrels compared with 125.0 million barrels in 2006. Earnings per share were up 10.3 percent, with EPS growth and stock performance above the S&P 500 average. The company generated nearly $3 billion in operating cash and increased return on capital by one percent. On July 13, 2008, InBev and Anheuser-Busch agreed to combine in a $70 all cash offer for Anheuser-Busch stock (NYSE ticker symbol BUD). The transaction closed on Nov. 18, 2008, and BUD is no longer listed on any stock exchanges. Anheuser-Busch, Inc. (ABI) Anheuser-Busch International, Inc. (ABII) Anheuser-Busch Packaging Group, Inc. Busch Entertainment Corporation (BEC) Busch Properties, Inc. (BPI) Manufacturers Railway Company; St. Louis Refrigerator Car Company Wholesaler Equity Development Corporation anheuser-busch companies, inc., operations Operation Percent of FY 2007 Net Sales U.S. beer production and marketing International beer production and marketing 72% 7% Packaging products provisions and services to beer and soft drink manufacturers (including aluminum can manufacturing and recycling, glass manufacturing) 10% Theme park operations (Busch Gardens, SeaWorld, Sesame Place, and others) 8% Corporate and eliminations 3% 2 0 0 7 c o r p o r at e s o c i a l r e s p o n s i b i l i t y r e p o r t anheuser-busch, inc. 4 100 brands distributed by a network of nearly 600 independent and company-owned wholesalers nationwide 12 countries outside 27 billion cans are the United States where our flagship brand, Budweiser, is brewed recycled annually by the Anheuser-Busch Packaging Group Geographic Reach In 2007, approximately 93 percent of the company’s net sales and 74 percent of net income were generated in the United States. Anheuser-Busch operates 12 breweries within the United States. Budweiser is brewed locally in 12 countries outside the United States under the direct supervision of Anheuser-Busch brew masters and is available in more than 80 countries. The company also operates 17 breweries outside of the United States (15 in China, one in India and one in the United Kingdom). The company also has equity investments with Grupo Modelo, the maker of Corona, and Tsingtao in China. Other Subsidiaries Busch Entertainment Corporation is one of the largest U.S. theme park operators, with 10 parks throughout the country that feature unique interactive experiences with the natural world. Last year marked the third consecutive year of double-digit profit growth. The Anheuser-Busch Packaging Group provides more than 60 percent of the company’s aluminum cans and 75 percent of the lids required for its beer products. In addition, this division recycles more than 27 billion cans, more than the company packages. Busch Agricultural Resources, L.L.C., operates rice milling facilities, grain elevators, barley seed processing plants, barley research facilities and malt plants across the United States. For more financial data, operational activities, or other information, view our 2007 Annual Report at www.anheuser-busch.com/AnnualReports.html. Product Lines Anheuser-Busch is best known for the world’s largest-selling beers, Bud Light and our flagship brand, Budweiser, and has more than 100 brands that are distributed by a network of nearly 600 independent and company-owned wholesalers nationwide. Budweiser continues to be one of the world’s most recognized and respected global brands, ranking first among all beer, wine and alcohol brands in BusinessWeek/ Interbrand’s annual “Best Global Brands” rankings. Budweiser finished 33rd overall among all global brands for 2008. For a complete listing of our products, visit www.anheuser-busch.com/ Products.html. 2 0 0 7 c o r p o r at e s o c i a l r e s p o n s i b i l i t y r e p o r t anheuser-busch, inc. 5 Corporate Social Responsibility Overview At Anheuser-Busch, our longtime belief has been “Making Friends is Our Business.” And nowhere is that philosophy more evident than in our company’s social responsibility efforts. From our recycling leftover grain from the brewing process that was started in 1899 by our founder, Adolphus Busch, to our being the first company to air a responsible drinking television ad in 1985, to our donation of fresh drinking water to victims of Hurricane Ike in August 2008, giving back is part of our company’s support of the communities in which we do business. Our social responsibility initiatives fall into five main areas. Responsibility This covers our commitment to providing quality products, to ensuring that we market them responsibly, and to being part of the solution to alcohol issues, including drunk driving and underage drinking. Environment We focus our efforts on water conservation, energy conservation and renewable energy, recycling and packaging, and wildlife habitat preserva tion. And we work up and down the value chain to help our suppliers understand, support and work with us on our social responsibility initiatives. People When it comes to our employees, we strive to support inclusion, promote health and wellness, and provide a safe work environment, competitive compen sation and benefits, and professional development opportunities. Community Our efforts focus on supporting organizations and causes related to education, health care and human services, minority leadership and economic development, civic, cultural enrichment and environmental stewardship. Accountability We are guided by our commitment to ethical business prac tices, our abidance by all applicable state and federal regulations, and our support of local and national economies through our tax and wage contributions. Anheuser-Busch continues to be recog nized as an industry leader on the social responsibility front. In 2008, for the fifth year in a row, Anheuser-Busch ranked first in the beverage industry for social responsibility in FORTUNE magazine’s “America’s Most Admired Companies” and “Global Most Admired Companies” lists. We also ranked second in social responsibility among all companies in the “Global Most Admired Companies” list. Report Scope This is the company’s first Corporate Social Responsibility (CSR) Report, which presents key performance indicator (KPI) data and information from calendar year 2007. Select highlights and ongoing projects from 2008 are included as well. Anheuser-Busch has issued an annual Environmental, Health and Safety (EHS) Report since 1997, and that KPI data and performance highlights are now reflected in the corresponding Environmental and People sections of this report. In addition, much of the data presented here has been tracked and used for decades publicly and made available through other reports and Web sites. 2 0 0 7 c o r p o r at e s o c i a l r e s p o n s i b i l i t y r e p o r t anheuser-busch, inc. 6 processes, while always important, were highlighted in 2007 due to the drought in the Southeast near our Cartersville, Ga., brewery and Rome, Ga., can plant operations. In turn, conserving energy is a daily priority in our operations, and we continued our exploration of new renewable energy projects. In addition, this report also highlights our commitment to our employees, as well as our assistance to the communities in which we operate through our charitable giving and positive economic impacts. Anheuser-Busch continues to be recognized as an industry leader on the social responsibility front. The information presented in this report represents all facilities within our major production and services businesses over which Anheuser-Busch maintains operational control: All major U.S. operations company who participated in a mapping session that identified the issues of greatest importance from a business and social responsibility perspective. In turn, we also heard from some key external stakeholders regarding issues they felt were important for our company to report. We consulted the Global Reporting Initiative’s (GRI) Sustainability Reporting Guidelines to assist in the presentation and content of our data. Content owners in each department were then responsible for collecting and verifying KPI data and information used in this report. The Anheuser-Busch EHS Policy and Management System continues to apply to all of our subsidiaries, where facilities gather data and confirm accuracy before sending the information to either the EHS manager at the operating subsidiary or directly to Environmental Affairs and Corporate Safety and Risk Management, as appropriate. Data are maintained securely back to at least 1991 and reported for the previous five years. 1 brewery in Mortlake, United Kingdom 1 brewery in Wuhan, Hubei Province, China We have begun to integrate Harbin, acquired in late 2004, into our EHS data collection and reporting processes. Harbin safety data for 2006 and 2007 are included in this report. To determine what information was most important to include in our CSR report, we worked with the leading non-profit CSR organization, Business for Social Responsibility (BSR), on a materiality analysis. This process involved stake holders from departments across the From the materiality analysis, we determined that our report should have a primary focus on two key areas, responsible drinking initiatives and environmental practices. While we have seen significant declines in drunk driving and underage drinking, these issues continue to be of concern to our nation, and Anheuser-Busch has been working to be part of the solution for more than 25 years. On the environmental impact front, water and energy are the issues of greatest importance to our business. Helping protect our water sources and conserving water in our brewing About Our Corporate Social Responsibility Group To better focus the company’s social responsibility initiatives, in 2007, we renamed and reorganized our Consumer Affairs Group to become the Corporate Social Responsibility (CSR) Group. The CSR Group developed our unified platform of Responsibility, Environment, Community, People, Accountability with input from senior management and key stakeholders within the company to strategically highlight and enhance our leadership role in the various areas of corporate social responsibility that are critical to success in today’s global business environment. 7 responsibility Proof 06 responsibility overview anheuser-busch, inc. Overview At Anheuser-Busch, our philosophy is that we brew our beers to be enjoyed responsibly by adults. We are proud to be the global industry leader in promoting responsibility with efforts dating back to the early 1900s, when the company ran a series of print ads with the tagline “Budweiser Means Moderation.” Today, our “Responsibility Matters” campaign provides a clear, concise reminder that one of the best solutions to addressing alcohol abuse is to emphasize personal responsibility. We have long acknowledged the seriousness of abusive drinking and devoted considerable resources to addressing it. Since we first introduced our “Know When to Say When” campaign back in 1982, the investment by the company and our network of wholesalers on responsibility efforts to help prevent alcohol abuse, including drunk driving and underage drinking, has surpassed $750 million. We regularly track progress and monitor public comment on alcohol issues and adjust our programming and education efforts accordingly. In fact, research is the foundation of all our efforts to develop and implement responsibility initiatives. This research takes many forms, including government, university, third-party and proprietary data. This research also serves as an important checks and balances measure to ensure our efforts remain relevant and effective. We also know that it takes teamwork to fight alcohol abuse, which is why we regularly join with parents, educators, community groups, law enforcement, government officials, retailers and others on developing and implementing our responsibility initiatives. In 2007, wholesalers had contact with more than 103,000 local community groups to promote alcohol awareness and education programs. 8 responsibility responsible marketing anheuser-busch, inc. 9 Responsible Marketing Anheuser-Busch’s commitment to leadership and excellence extends beyond producing high-quality, innovative products. It also includes selling and marketing those products responsibly. Codes and Guidelines Anheuser-Busch follows the voluntary Beer Institute (BI) Advertising and Marketing Code, as well as our own Product Placement Guidelines and International Advertising and Marketing Code. In addition, Anheuser-Busch was the first brewer to develop its own College Marketing Code and distribute it annually to colleges across the country. Every Anheuser-Busch employee, wholesaler and outside agency whose responsibilities include advertising and marketing beer receives a copy of these codes on an annual basis. For more information and to view the codes, visit www.beeresponsible.com/advertising-policy.html. In addition, the following steps summarize the development, review and placement of our ad concepts. The Advertising Industry Code of Ethical Standards Advertising agencies have their own industry code of ethical standards that they abide by when creating an advertising idea. www.aaaa.org/eweb/upload/inside/ standards.pdf. Storyboard and Script Review Agency ideas are reviewed in storyboard and/or script form by Anheuser-Busch’s Marketing Department. Corporate Social Responsibility Review As part of Anheuser-Busch’s advertising checks and balances, at the request of the Marketing Department, the Corporate Social Responsibility Group reviews ads to help ensure the messages adhere to standards of candor and good taste, portray beer responsibly and are directed toward the intended audience — adults of legal purchase and drinking age. All Anheuser-Busch brand ads and point-of-sale materials also include a responsibility reminder. responsibility responsible marketing anheuser-busch, inc. 10 The final arbiter of what is appropriate and “in good taste” is the public — whose goodwill the company must maintain in order to operate as a business. Legal Review All Anheuser-Busch advertising is formally reviewed by the company’s Legal Department before it is cleared to air. Focus Groups Many times commercials in their storyboard or scripted form are researched via focus groups of the general public 21 years of age or older, including opinion leaders, parents and adult beer drinkers to ensure they appeal to the appropriate audience, support the company and brand image and contain no moral or ethical issues. Television Networks Standards and Practices The networks thoroughly review every advertisement before approving it to air in order to ensure that the ads comply with their own advertising Network Standards. Ultimately, the final arbiter of what is appropriate and “in good taste” is the public — whose goodwill the company must maintain in order to operate as a business. We take pride in the fact that complaints about our advertising are a very small percentage of total customer contacts. The BI Code includes a provision that offers independent review of advertising for consumers who are dissatisfied with a brewer’s response to a complaint. The Code Compliance Review Board (CCRB) is made up of individuals with demonstrated integrity and financial independence from the industry, expertise in contemporary advertising and familiarity with aspects of government alcohol policy and related issues. In 2007, the CCRB reviewed four complaints against Anheuser-Busch, and all were decided in our favor. The CCRB annual report is available at www.beerinstitute.org. Anheuser-Busch limits access to our beer-related Web sites to adults 21 or older. All Anheuser-Busch beer-related Web sites feature an age-check system, as recommended in reports issued by the Federal Trade Commission (FTC) in 1999 and 2003. In addition, we provide our beer-branded sites’ Web addresses to companies that offer parental control software so parents may block their children’s access to the site, if they choose. The company’s responsibility Web site, www.beeresponsible.com, is solely dedicated to our efforts to promote responsible drinking and discourage alcohol abuse. Anheuser-Busch was the first brewer to develop its own College Marketing Code and distribute it annually to colleges across the country. Every Anheuser-Busch employee, wholesaler and outside agency whose responsibilities include advertising and marketing beer receives a copy of this code on an annual basis. responsibility responsible marketing Product Reviews In early 2007, we discontinued production of our caffeinated alcohol beverage Spykes because the criticism this product received — while wholly unfounded — detracted from our efforts to promote responsibility. The product was criticized for its size, as being easy to steal or hide, and its flavors, as appealing to underage people. However, there were more than 50 other alcohol Federal Trade Commission The beer business is one of the nation’s most heavily-regulated industries on both the federal and state levels, so Anheuser-Busch has a long history of regularly sharing information with government agencies, including the Federal Trade Commission (FTC). As in past years, in 2007 we welcomed the opportunity to provide the FTC with the information requested regarding our advertising and marketing practices. The resulting FTC report, which was released in June 2008, highlighted the thoroughness of brewers’ compliance with the Beer Institute Code and reaffirmed that self-regulation continues to work well. For a copy of the report, visit www.ftc.gov/opa/2008/06/alcoholrpt.shtm. anheuser-busch, inc. 11 products available in 50 ml bottles in all colors and flavors, the majority of which were hard liquor with three to four times the alcohol content of Spykes. At 12 percent alcohol by volume, which is similar to wine in alcohol content, Spykes was the lowest alcohol content product in this market segment. Nevertheless, we discontinued Spykes to retain our position as the clear industry leader in responsibility. Again in June 2008, we responded to unfounded criticism by changing our product offering to demonstrate leadership in responsibility. Working in cooperation with attorneys general (AGs) in 11 states, we reformulated our Bud Extra and Tilt products to remove the caffeine and guarana. Adults have been mixing caffeinated cocktails for decades: rum and Coke, Irish coffee, and Red Bull and vodka. Bud Extra and Tilt were criticized even though they had less alcohol than most of these cocktails, had much less caffeine than a 12-ounce coffee, and had received all necessary federal and state agency approvals. Still AGs were concerned that prepackaged caffeinated alcohol beverages promoted irresponsible drinking. Anheuser-Busch has a long history of voluntarily working with state AGs to encourage adults to drink responsibly, and we are pleased to have been the first company to answer the call of this group of AGs who asked the beer and hard-liquor industries to stop selling pre-packaged caffeinated alcohol beverages. Anheuser-Busch also paid a total amount of $200,000 to be distributed among the participating states to cover costs of the investigation and to be used for public programs, including implementing programs designed to prevent underage drinking. Complete information on all of the company’s responsibility initiatives may be found at www.beeresponsible.com. responsibility our programs anheuser-busch, inc. Our Programs Anheuser-Busch focuses its responsibility efforts on four key areas: drunk driving, underage drinking, college issues and responsible drinking. With the help of subject-matter experts, we develop community-based programs that are then implemented at the local level by our wholesalers across the country. For more than a decade, our wholesalers have been required to spend one penny-per-case of beer sold on responsibility initiatives as part of their distribution agreement with Anheuser-Busch. Annual wholesaler spending generally exceeds the required amount by about 10 percent, with 2007 wholesaler responsibility spending totaling $15.5 million. This information is tracked and verified on an annual basis through our sales system. Drunk-Driving Prevention In 1982, Anheuser-Busch joined the fight against drunk driving with the introduction of our “Know When to Say When” campaign. At that time, we also were one of the founding sponsors of Mothers Against Drunk Driving. We introduced our first locally implemented safe-ride home program, FATALITIES IN DRUNK-DRIVING CRASHES (in thousands from 1982 to 2007) 21,113 12,998 ’82 ’87 ’92 ’97 ’02 ’07 Source: National Highway Traffic Safety Administration, U.S. Department of Transportation, www-nrd.nhtsa.dot.gov/ Pubs/811017.PDF or visit www.alcoholstats.com. 38% lower in 2007 than in 1982 12 responsibility our programs In collaboration with local cab companies, bars and restaurants, Anheuser-Busch wholesalers help prevent drunk driving by providing safe rides home with Alert Cab. anheuser-busch, inc. 13 Alert Cab, in St. Louis in 1984, and that program continues to operate locally in communities across the country. Over the years, we have developed and supported a variety of safe-ride initiatives, including promoting the use of designated drivers. This concept enjoys strong support from retailers who appreciate that helping patrons get a safe-ride home is good business for them as well. From our annual survey of designated drivers, we know that 137 million American adults have either been a designated driver or been driven home by one. In 2007, more than 475 wholesalers, or about 80 percent, conducted designated-driver programs. Safe-Ride Home Programs In collaboration with local cab companies, bars and restaurants, Anheuser-Busch wholesalers help prevent drunk driving by providing safe rides home with Alert Cab. Bar and restaurant patrons who may have overindulged are provided a free or reduced-fare cab ride home. Safe-ride partnerships also include our work with AAA Auto Club South on the Tow To Go program, which has provided more than 8,300 safe rides home since its inception in 1998, and the Washington Regional Alcohol Program’s (WRAP) SoberRide™ program, which has provided more than 41,000 safe rides homes since its inception in 1993. family talk In 2007, wholesalers provided more than 174,000 Family Talk About Drinking program materials to parents, educators, law enforcement and community organizations. Since 1990, Anheuser-Busch and its wholesalers have distributed more than 6.9 million Family Talk About Drinking program materials. Complete information on the program is available at www.familytalkonline.com. In 2007, Anheuser-Busch wholesalers provided more than 186,000 safe rides through cab and shuttle programs. Since 1989, our wholesalers have provided more than 1.2 million safe rides home. responsibility our programs anheuser-busch, inc. Underage-Drinking Prevention At Anheuser-Busch, we brew our beers to be enjoyed responsibly by adults. We don’t want anyone underage consuming our products. After all, we’re parents, too … sharing the same concerns as every other parent about these issues. Our programs to help prevent underage drinking address the issue in many ways, such as helping parents talk with their children about drinking, aiding schools in building self-esteem in children, and assisting those who sell our products in spotting fake I.D.s and serving responsibly. Family Talk Anheuser-Busch began its underagedrinking prevention efforts in the late 1980s with our campaign “Let’s Stop Underage Drinking Before It Starts” to address increasing concern about this issue. In 1990, we worked with authorities in the areas of family counseling, education, child psychology and alcohol treatment PERCENT OF HIGH-SCHOOL SENIORS WHO HAVE HAD A DRINK OF ALCOHOL IN THE LAST 30 DAYS 69.7 44.4 ’82 ’87 ’92 36% lower in 2007 than in 1982 Lowest level since tracking began in 1975 ’97 ’02 ’07 Source: The University of Michigan Monitoring the Future Study, sponsored by the National Institute on Drug Abuse, U.S. Department of Health & Human Services, www.monitoringthefuture. org/ or visit www.alcohol stats.com. 14 to develop Family Talk About Drinking. This free program includes a bookmark, parent guidebook and DVD and is available in five languages — English, Spanish, Chinese, Korean and Vietnamese. In 2007, wholesalers provided more than 174,000 Family Talk About Drinking program materials to parents, educators, law enforcement and community organizations. Since 1990, Anheuser-Busch and its wholesalers have distributed more than 6.9 million Family Talk About Drinking program materials. Complete information on the program is available at www.familytalkonline.com. We ID Helping prevent sales to minors at retail is key in preventing underage drinking, and Anheuser-Busch and its wholesalers offer retailers training and a variety of materials that help them check and verify valid I.D.s. These include pocket-size We ID cards (in English, Spanish or Korean) with tips on spotting fake I.D.s; drivers license booklets featuring photos of valid driver licenses; and wristbands for identifying customers who already have shown proof of legal age. In 2007, our wholesalers provided more than 16,000 We ID cards, 163,000 drivers license booklets and 7.3 million wristbands. Since 1990, Anheuser-Busch and our wholesalers have provided more than 1.2 million We ID cards, 1.8 million drivers license booklets and 67.3 million wristbands. responsibility our programs anheuser-busch, inc. Prevent. Don’t Provide. Government and independent research has shown that most teens who drink get their alcohol from parents or other adults. We created our Prevent. Don’t Provide. program to remind parents not to buy alcohol for minors or provide it to them at parties — no matter the occasion. The National Fatherhood Initiative, International Association of Fire Chiefs and Association of Junior Leagues International support this program. In 2007, we launched Positive Parenting Connection on MySpace (www.myspace.com/positiveparenting) with their support. This online resource includes materials, tips, videos and links to expert-designed resources to help parents use their positive influence to communicate with their children about making smart choices. college talk In 2007, more than 78,000 College Talk materials were distributed by our wholesalers. Since 2002, Anheuser‑Busch and its wholesalers have distributed more than 731,900 program materials. Complete information on the program is available at www.collegetalkonline.com. 15 Speakers Bureau Members of the Anheuser-Busch Corporate Social Responsibility Speakers Bureau deliver messages about responsibility and respect for the law to students, parents, educators, community groups and military personnel around the country through the support of our wholesalers. In 2007, more than 259,000 students attended these presentations, bringing the total to 2.7 million since 1998. Additional information on these speakers is available at www.beeresponsible.com/ underage-drinking-our-programs.html. Government Outreach We also worked with federal and state government officials in 2007 and again in 2008 to help prevent underage drinking through our support of the Federal Trade Commission’s “We Don’t Serve Teens” campaign that reminds parents and other adults, “Don’t serve alcohol to teens. It’s unsafe. It’s illegal. It’s irresponsible.” To support the 2007 FTC campaign, Anheuser-Busch placed ads in high-profile publications Newsweek, TIME and US News & World Report, and on nearly 900 outdoor billboards in major markets. These ad placements were viewed by an audience of approximately 101 million in just one week. In 2007, for the third year in a row, state AGs were offered an opportunity to record 30-second radio public service announcements (PSAs) aimed at preventing underage drinking and drunk driving. Twenty-four AGs, along with one first lady and a consumer protection commissioner, recorded PSAs that aired on paid media statewide in the participants’ respective states. responsibility our programs anheuser-busch, inc. 16 44% lower in 2007 than in 1982 Lowest level since tracking began in 1966 College Programs Our position on drinking at the college level is clear: if you’re 21 and older and choose to drink, please do so responsibly. If you’re under 21, respect the law and don’t drink. We have developed and supported a variety of initiatives that reinforce those messages among our nation’s college students. College Talk With experts from the areas of alcohol treatment, student health and wellness, social norms marketing, education and family therapy, we developed our College Talk program in 2001 to help parents continue communicating openly and honestly with their children on the subject of drinking as they prepare for college and begin a life on their own. In 2007, more than 78,000 College Talk materials were distributed by our wholesalers. Since 2002, Anheuser-Busch and its wholesalers have distributed more than 731,900 program materials. Complete information on the program is available at www.collegetalkonline.com. Social Norms Social norms marketing is an effective data-driven approach to help reduce highrisk drinking and promote harm-reduction behaviors among college students. Social norming educates students about the actual behavior of their peers — focusing on the fact that most college students drink moderately, infrequently or not at all. PERCENTAGE OF COLLEGE FRESHMEN WHO DRINK BEER (in percent from 1982 to 2007) 73.7 41.2 ’82 ’87 ’92 ’97 This approach has seen documented reductions of up to more than 40 percent in irresponsible consumption and comparable reductions in alcohol-related injuries, according to various case studies by the National Social Norms Institute. Since 1999, Anheuser-Busch and its foundation have contributed nearly $7.8 million to support social norms initiatives at campuses, including California State University – Fresno; Florida State University; Georgetown University; Michigan State University; Murray State University; University of Hawaii; University of Kentucky; University of Mississippi; University of Missouri; University of Virginia (UVA); and Virginia Commonwealth University. The company also provided a gift to help establish the National Social Norms Institute at UVA. ’02 ’07 Source: The American Freshman Survey, sponsored by UCLA and the American Council on Education and conducted by the Higher Education Research Institute at UCLA’s Graduate School of Education & Information Studies, http://www.gseis. ucla.edu/heri/pr-display. php?prQry=11 or visit www.alcoholstats.com. responsibility our programs anheuser-busch, inc. BEER DRINKERS DRINK RESPONSIBLY AND IN MODERATION 17 Alcohol Medical Scholars Program Since 1997, Anheuser-Busch has supported the Alcohol Medical Scholars Program at the University of California – San Diego. This effort helps train physicians to better diagnose alcohol dependency and to provide care for people with alcohol use disorders and other substance-related problems. In 2008, the founder of the program, Marc Shuckit, M.D., took this initiative to Cape Town, South Africa, to help educate physicians there as well. ■ Yes ■ No 3% 97% Source: Harris Interactive ® conducted this survey via its QuickQuery SM online omnibus service on behalf of Anheuser-Busch in 2007. Details are available at www.alcoholstats.com. Responsible Drinking Promoting personal responsibility is the foundation of Anheuser-Busch’s responsible drinking efforts. Through programs for retail and home use, we encourage consumers to remember that “Responsibility Matters.” In addition, we support selected alcohol abuse and treatment programs. Responsibility Advertisements In addition to ensuring our brand marketing efforts and products are responsible, Anheuser-Busch creates television, print, radio, outdoor and Internet advertisements dedicated solely to promoting a responsibility message. For the past quarter century, we have used award-winning creative messaging to promote responsible drinking, increase the use of designated drivers, and encourage parents to talk with their teens to help prevent underage drinking. Good Sport In 1986, Good Sport became the first fan management program to be implemented. This initiative is designed to help stadium operators, team owners and concessionaires promote a positive crowd environment through server training, in-stadium public-service announcements and signage, and safe-ride home programs. This program is now in place in 134 major and minor sports venues in the United States, as well as select university sports venues nationwide. European Alcohol and Health Forum In 2007, Anheuser-Busch became a member of the European Alcohol and Health Forum. This initiative is designed to encourage best-practice sharing among health professionals, governments and non-governmental organizations, as well as the industry, to help address alcohol abuse issues. Participants are asked to make formal project commitments, and we have committed to hosting a social norms forum on March 31, 2009. The forum will feature presentations by the leading experts in social norms implementation, best-practice presentations by those who have implemented programs and other relevant contributors. Participants will be provided information on how to successfully develop and implement the social-norms method of addressing highrisk drinking among populations at risk. The anticipated audience is a variety of European stakeholders, including local and national officials, community leaders, health care professionals, law enforcement officials and others. Complete information on all of the company’s responsibility initiatives may be found at www.beeresponsible.com. responsibility product safety anheuser-busch, inc. 18 Product Safety Anheuser-Busch’s passion and dedication to quality have allowed the company to offer a diverse range of beers, loved by consumers around the world. We use the finest ingredients to brew our beers and follow an uncompromising commitment to product quality to ensure our consumers enjoy the freshest, besttasting beers. We follow a comprehensive quality management system at our facilities to maintain product safety, and we extend these standards to our suppliers as well. There were no product-safety recalls in 2007. In our breweries, our production lines are equipped with advanced technology systems to help our brewing and packaging professionals detect issues as the beer is being packaged. In addition, we utilize a coding system on our packages that identifies the beer packaging date, source brewery, package production line and time-specific data at 15-minute increments. This information allows us to pinpoint brewing and packaging information to help expedite any product quality analysis that may be needed. Of course, if consumers have questions, comments or issues, they may call our toll-free customer service number printed on our packaging and speak to a company representative in our Customer Relationship Group. This department is the initial point of contact for our customers and can help address and handle consumer questions or complaints in a timely fashion by working with the various company departments, depending on the topic. GMO Use Genetically modified (GM) organisms and the biotechnology used to create them have been at the center of much global debate. In some parts of the world, GM ingredients are accepted, and in other parts of the world, the use of GM ingredients is restricted or banned. All of our products are made according to the highest quality standards and in complete compliance with the laws in each country where we sell our beers. We fully comply with all international regulatory standards wherever our beers are sold internationally. Neither Anheuser-Busch, nor our international licensed brewing partners use GM ingredients, including GM rice, in brewing products sold in any country with legal restrictions. All Budweiser brewed in Europe, by Anheuser-Busch or its licensed brewing partners, uses European-grown rice. We believe there is a need for further dialogue and research in order to reach scientific consensus on the use of GM ingredients. Additionally, we recognize that the issues surrounding plant biotechnology and the planting and use of pharmaceutical crops are important and complex matters that deserve the attention of all facets of our global society. We believe the Grocery Manufacturers of America Association’s January 2007 position paper expresses a sensible balance of concern for food safety, ample food supply and world health. This paper can be found at www.gmabrands.com/publicpolicy/ docs/Plant-MadePharmaceuticalsand Plant-Madel.pdf. 19 responsibility environment Proof 06 environment overview anheuser-busch, inc. 20 Overview At Anheuser-Busch, our tradition of environmental stewardship dates back to the company’s founder, Adolphus Busch. In the late 1800s, he began recycling leftover grain from the brewing process, using it for cattle feed, a practice that still continues today. summary of companywide key environmental performance indicators 2003 2004 2005 2006 2007 CHANGE (’03-’07)* Indicator (Companywide) Energy Use including biogas, cogeneration and purchased electricity use (1000 gJ) Water use (million hl) Greenhouse gases (MMTCO2e) (Scope 1 and 2) EPA toxic releases & transfers (metric tons)** Solid waste (metric tons) Hazardous waste generated, U.S. only (metric tons) 35,019 34,431 34,212 33,465 32,712 -6.6% 912 952 957 950 934 +2.4% — — 3.11 3.03 2.98 -4.3% 2,274 2,226 2,373 2,123 2,017 -11.3% 40,127 38,550 36,604 35,811 30,560 -23.8% 190 204 197 182 160 -15.8% 6.00 5.90 5.90 5.80 5.50 -7.3% 212 205 203 194 187 -11.8% 0.20 0.17 0.15 0.13 0.11 -44.5% INDICATOR (Breweries only) Water use (hl per hl) Energy use (1000 gJ per hl) Solid waste landfilled (kg per hl) *Slight differences may occur due to rounding hl = hectoliter kg = kilogram gJ = gigajoule MMTCO 2e = million metric tons CO 2 equivalents **Approximately 44 percent of these releases are from the permitted use of coatings required to prepare bare aluminum cans for beverage container use or from fuel combustion. Another 48 percent consists of nitrates produced during wastewater treatment of the organic nitrogen from grain and hops found in the wastewater. environment overview anheuser-busch, inc. Today, while we continue to manage the many aspects of environmental responsibility, the company is focused on key issues — water, energy, recycling, and packaging. We are expanding programs and practices to address these issues, building new initiatives on our strong foundation. This includes reaching beyond our own operations to understand and address the impacts from our suppliers and distribution networks. At Anheuser-Busch, the EHS governance and management structure is combined. For the purposes of this report, elements of this structure are reported in this section, as well as the People section. Our policies, programs, and performance targets are designed to preserve the long-term value of our operations and the environment through responsible resource use. The EHS Policy sets companywide direction and expectations from senior management that are integrated into the overall business decision-making process at all levels of the company. Developed more than a decade ago, our EHS Management System produces excellent performance results by setting clear expectations for all employees and features many elements of the ISO 14001 environmental management standard. Anheuser-Busch continuously refines the EHS Management System to reflect evolving regulations and technological advancements, to provide the most current guidance to employees throughout the organization, and to respond to changing business conditions. We also participate in many regional, national, and international programs and organizations that support sound business and environmental policy and advocate best practices, including the Global Environmental Management Initiative (GEMI), and Business for Social Responsibility. summary of companywide environmental goals As part of our commitment through our various partnerships, we’ve established rigorous stretch goals for our environmental performance. Area 21 Goal Year Greenhouse Gas Emissions 5 percent total greenhouse gas emissions reduction from our 2005 baseline for U.S. Operations (U.S. EPA Climate Leaders goal) 2010 Renewable Energy Obtain 15 percent of companywide total fuel use from renewable sources 2010 Energy 1 percent reduction of energy use per year 2010 Water 4 hectoliters of water used per hectoliter of beer packaged 2010 Indicator (Companywide) INDICATOR (Breweries only) e n v i r o n m e n t w at e r anheuser-busch, inc. 22 Water High-quality water is one of the main ingredients in beer and a priority for our breweries and the communities where we operate. It also is an important consideration in our agricultural and entertainment businesses. The Anheuser-Busch Water Council, established in 2002, helps our company strategically manage this critical resource. Water use impacts within our supply chain are discussed in the Value Chain section. From the beginning of 2003 through 2007, our Fort Collins, Colo., brewery decreased water use per barrel packaged by 23 percent. Photo Above Right Anheuser-Busch Water Council members take an educational tour of the Lower Yellowstone River basin. Over the past five years, members of the Anheuser-Busch Water Council have met with local water providers, watershed planners, and other key stakeholders to identify the issues and opportunities within our watersheds. The objective is to ensure a reliable water supply across our supply chain. The information obtained from our on-site team includes tracking the water supply from the origin of the watershed to its final use in our supply chain. Conservation continues to be a primary focus in how we address our water use while maintaining our quality standards. Our approach to water efficiency includes conducting operational reviews to minimize use and identifying opportunities to recycle and reuse. Managing our wastewater presents a final reuse opportunity. At our breweries in Fort Collins, Colo., and Jacksonville, Fla., we apply nutrient-rich wastewater to company-owned farms that grow feed and fuel crops like alfalfa, canola and switch grass. At our Cartersville, Ga., brewery, we apply bio-solids from our Bio-Energy Recovery Systems as fertilizer at our nearby farm where turf and hay crops such as Bermuda and rye grass are grown, baled and sold to area farmers. e n v i r o n m e n t w at e r 23 anheuser-busch, inc. BREWERY WATER USE WATER USE COMPANYWIDE (HL per HL) (million HL) ■ Goal 10.0 1,000 7.5 750 5.0 ■ Entertainment 500 ■ Packaging 2.5 ■ Malting/Milling 03 04 05 06 07 10 ■ Breweries 250 03 04 05 06 07 In the past five years, our brewery water use ratio has declined more than 7 percent. Compared to 2003, in 2007, our efficiency efforts resulted in a savings of 4.3 billion liters of water. In 2007, our companywide water use totaled 890 million hectoliters. This is a 2.4 percent increase over 2003, nearly flat considering production increased by nearly 2 percent. Water use at our breweries was 5.5 hectoliters per hectoliter of packaged beer. In 2007, our breweries reduced their water use ratio by 4.4 percent and have set a 2010 stretch goal of 4 hectoliters of water per hectoliter of beer packaged. Although the breweries use a large volume of water in the brewing process to produce our product and meet high quality standards, we also treat and return large volumes to the local watersheds. In 2007, the breweries returned on average more than 70 percent of the total water used at the facility back to the local watershed. water use at the cartersville, Ga., brewery In 2007, due to a drought threat in the Atlanta area, our Cartersville, Ga., brewery reduced its water use to 4.3 hectoliters per hectoliter of packaged beer, a 12 percent reduction over 2006. The conservation measures implemented at Cartersville are now being transferred to other breweries, where possible, to help continue our conservation efforts system-wide while maintaining our quality standards. We also began working with our environmental partners and community leaders to identify potential watershed protection projects in the region. environment energy use anheuser-busch, inc. 24 The Anheuser-Busch Wuhan Brewery has reduced electricity use by 11 percent and fuel use by 3 percent on a per barrel basis since 2003. Energy Use Energy conservation has been a strategic focus at Anheuser-Busch for many years, especially at our breweries, which represent the largest share of energy use. Our company operates more than 50 boilers across 12 U.S. breweries. More than 98 percent of the boiler fuel purchased is used to generate steam for brewery processes. In addition, boilers throughout our company have economizers that capture excess heat to produce energy and enhance fuel efficiency. We continue to analyze boiler equipment to determine where economizer upgrades would be appropriate to help provide additional levels of heat recovery, and cost and emission reductions. However, the escalating, sometimes unpredictable, cost of energy and emerging climate regulations have increased our focus even more. In 2005, we established our Energy Council to aid in our efforts to conserve energy when possible and develop additional sources of onsite renewable energy. In 2007, we set a new annual reduction goal of 1 percent of energy use at our breweries, as well as a goal of obtaining 15 percent of companywide fuel use from renewable sources by 2010. We also continue to collect and analyze energy use in our supply chain and distribution networks in conjunction with our efforts to reduce costs and understand greenhouse gas emissions from those same sources. This additional attention on our energy management plan has netted even more positive results as we have reduced both energy use and absolute greenhouse gas emissions, while continuing to increase production. Energy use was 179 thousand gigajoules per hectoliter of beer packaged at the breweries in 2007, a decline of 4.2 percent from 2006, which well exceeded our 1 percent goal. Companywide, our total energy use was 32.7 million gigajoules. Programs such as boiler efficiency optimization, heat recovery projects and lighting retrofits have contributed to these results. Voluntary partnerships, such as with the U.S. EPA’s Energy Star program, support our utilities management program by providing an information and networking resource focused on energy-efficiency improvements. environment energy use anheuser-busch, inc. BREWERY ENERGY USE ENERGY USE COMPANYWIDE (thousand GJ per HL) (thousand GJ) 2007 BREWERY ON-SITE ENERGY USE (percent) ■ Goal 36,000 250 200 10% Biogas 27,000 19% Coal 150 ■ Entertainment 100 9% Fuel Oil 18,000 62% Natural Gas ■ Packaging ■ Malting/Milling 75 03 04 05 06 07 10 ■ Breweries 9,000 03 04 05 06 07 Fairfield, Calif., Brewery Heat Recovery In 2007, Anheuser-Busch installed a new heat recovery system at the Fairfield brewery. The system captures waste heat from brewing and ammonia processes and uses the available energy to preheat water that is used in powerhouse operations. The project has reduced plant fuel use by 12 percent, as well as associated greenhouse gas emissions. This is just one example of how the breweries use waste heat to increase their energy efficiency and reduce costs. 25 environment renewable energy anheuser-busch, inc. 26 bers Anheuser-Busch has been using renewable energy for more than two decades through our Bio-Energy Recovery Systems (BERS) technology, first implemented in 1985. BERS, a technology that uses nutrient-rich wastewater to create and capture a renewable fuel, provides up to 15 percent of the fuel for nine of our U.S. breweries and our brewery in Wuhan, China. We are the world’s largest operator of BERS. Renewable Energy Renewable energy is a critical component of our energy strategy. In 2007, Anheuser-Busch completed a companywide study with the U.S. Department of Energy’s National Renewable Energy Laboratory. The study reviewed 58 Anheuser-Busch facilities and identified potential renewable energy opportunities at several locations. We are using this study as a roadmap to further evaluate and implement renewable energy technologies. At the end of 2007, 8 percent of our total fuel use companywide came from renewable sources. That year we set a goal of obtaining 15 percent of our total fuel use companywide from renewable sources by the end of 2010. By the end of 2009, we estimate that the equivalent of about one in seven of our beers brewed domes tically is expected to be brewed using renewable fuel.* External partnerships help provide assistance and knowledge-sharing enabling us to further our renewable energy efforts. U.S. EPA Landfill Methane Outreach Program U.S. DOE National Renewable Energy Laboratory National Biodiesel Board *1 in 7 U.S. beers is derived from taking the company’s 2007 U.S. beer production, converting to equivalent 12-oz servings and multiplying by the estimated percentage of renewable fuel the company plans to use at its U.S. breweries in 2009. In 2007, BERS generated almost 1,880 billion BTUs (2 million gigajoules). In this same year, Anheuser-Busch breweries avoided more than 248 million pounds of greenhouse gas emissions from fossil fuels by using this renewable fuel. We continue to expand and improve our BERS systems with our tenth domestic brewery to begin using the technology by year end 2008. We also are evaluating other renewable energies such as landfill gas, biomass, wind and solar. In 2008, we began construction on a landfill gas project. Our Houston brewery will use biogas from a nearby landfill as part of an alternative fuel plan that, when combined with the facility’s BERS, is anticipated to provide more than 70 percent of the brewery’s fuel needs. e n v i r o n m e n t g r e e n h o u s e g a s e m i s s i o n s a n d c l i m at e c h a n g e anheuser-busch, inc. 27 Greenhouse Gas Emissions and Climate Change Over the past several years, our strategy to address energy issues has evolved into a comprehensive set of initiatives encompassing energy and climate, and addressing energy conservation, renewable energy and greenhouse gas emissions. GREENHOUSE GAS EMISSIONS U.S. TOTAL ONLY (million metric tons CO2e) ■ Goal 4 3 2 1 05 06 07 10 Our greenhouse gas inventory includes direct and indirect (Scope 1 and 2) companywide emissions of carbon dioxide, methane and nitrous oxide. Sources currently reported include: purchased electricity and steam, purchased fuel used for steam generation, purchased carbon dioxide generated from fossil-fuel sources and several smaller sources. It includes several key components: conservation, tracking and reporting emissions, setting goals, participating in voluntary initiatives, reducing energy use, improving efficiency in capturing carbon dioxide (CO2), increasing use of renewable fuels and minimizing purchases of carbon dioxide generated from fossil-fuel sources. Our approach to identifying and addressing the issues associated with greenhouse gas impacts in our supply chain is discussed in the Value Chain section. Across our breweries, fuel combustion used to generate steam and purchased electricity are the principal sources of greenhouse gas emissions. Reductions achieved to date have been realized through energy efficiency, implementation of capital projects and fuel switching from oil to natural gas. Reported emissions have been adjusted to account for indirect emissions from purchased steam, which were previously estimated and are now provided to Anheuser-Busch by the steam generator. For our U.S. operations under the EPA Climate Leaders program, we established a 2010 goal of reducing total greenhouse gas emissions by 5 percent from our 2005 baseline. e n v i r o n m e n t g r e e n h o u s e g a s e m i s s i o n s a n d c l i m at e c h a n g e anheuser-busch, inc. Anheuser-Busch uses a technology called CO2 Advanced Purification Systems (CAPS) at six breweries. These systems capture and reuse CO 2 throughout the fermentation process, reducing the amount of CO 2 that would have been released by 20 percent. Anheuser-Busch is now evaluating the next generation of technologies that would greatly improve the efficiency of CO 2 use within the brewery. Anheuser-Busch supports and participates in voluntary initiatives that encourage emissions reporting and responsible energy management, and facilitate reductions in greenhouse gas emissions. These include: California Climate Action Registry U.S. EPA Climate Leaders U.S. EPA SmartWay Transport “Our Pledge” Campaign In November 2007, we launched our Web site OurPledge.com to highlight the company’s longstanding efforts on the environment. Simply put, our pledge is to continually seek to operate more efficiently and maintain our quality standards, while considering our environmental impact in order to be better stewards of the world in which we live. OurPledge.com features employee videos telling our environmental story…from recycling, to water and energy conservation, to wildlife habitat preservation. And 30-second versions of the videos have appeared as Budweiser TV ads, with placements on high-profile select TV programming, including sports and cable. In addition, we’ve placed print and Internet advertising with our environmental messages. Some of our wholesalers also have taken the opportunity to highlight their environmental efforts through retail signage, billboards and even truck decals that allow wholesalers to remind their communities of their efforts to use more environmentally-friendly fuels, such as biodiesel and compressed natural gas, as well as hybrid vehicles. 28 e n v i r o n m e n t r e c y c l i n g a n d pa c k a g i n g anheuser-busch, inc. 29 Recycling and Packaging Anheuser-Busch explores ways to reduce the use of materials and eliminate waste before it is created to further both business and environmental goals without sacrificing quality. SOLID WASTE LANDFILLED (metric tons) 42,000 35,000 We work to eliminate material losses, improve packaging efficiencies and determine cost-effective, environmentallypreferable alternatives. We also support and participate in public education recycling campaigns. long-term programs. A-BRC also supports more than 700 suppliers by providing recycling collection equipment and marketing tools such as advertisements and local signage to encourage community recycling. Recycling Founded in 1978, Anheuser-Busch Recycling Corporation (A-BRC) recycles the equivalent of five aluminum cans for every four our breweries package. In 2007, A-BRC recycled 803 million pounds (364,000 metric tons) of aluminum beverage containers. Anheuser-Busch continues to make advances in reducing the use of raw materials throughout our processes. In 2007, we recycled more than 98 percent of all solid waste generated in our U.S. operations. At our breweries, the rate was even higher — recycling more than 99 percent of the solid waste generated. In 2007, these recycled waste streams companywide totaled more than 5 billion pounds (2.27 million metric tons). 28,000 ■ Entertainment ■ Packaging ■ Malting/Milling ■ Breweries 21,000 14,000 7,000 03 04 05 06 07 In 2007, we recycled more than 98 percent of all solid waste generated in our U.S. operations. At our breweries, the rate was even higher — recycling more than 99 percent of the solid waste generated. A-BRC also actively encourages public aluminum can, glass and plastic bottle recycling. In 2007, A-BRC initiated recycling at more than 150 events by partnering with local recyclers, our distributors, national organizations, packaging material groups, and leading beverage industry producers to increase container recycling through innovative, comprehensive, We continue to make these advances at our Budweiser Wuhan brewery. From 2003 to 2007, we reduced by 73 percent the amount of waste contributed to the community landfill, and in 2007, we recycled 153 million pounds of materials. e n v i r o n m e n t r e c y c l i n g a n d pa c k a g i n g anheuser-busch, inc. Packaging Consumer demand, reducing product loss and damage during transportation, and brand marketing all factor into the innovative redesign of beverage containers and packaging. Anheuser-Busch works with its suppliers, wholesalers and procurement and packaging experts to help us make decisions that minimize cost and environmental impact from packaging materials. The Anheuser-Busch Supplier Certification Group has a program for packaging suppliers that includes requirements for environmental plans and programs for continuous environmental improvement. The group conducted 85 individual supplier audits in 2007. As our next step, we are establishing key metrics that will further assist us in understanding the impact of our packaging decisions. We continue our light-weighting efforts to reduce costs, minimize the use of natural resources, and lessen transportation-related impacts. In 2007, we realized savings of 33 million pounds of solid waste resulting from packaging design modifications. As an example, the company made two packaging changes during 2007 that resulted in material reductions. Anheuser-Busch reduced its 15-pack/ 24-ounce can tray, resulting in a total savings of 2.3 million pounds of cardboard. An additional change to the carton liner for the 24-pack/12-ounce package resulted in a savings of 2 million pounds of liner material. Reducing energy In recent years, we’ve reduced the diameter of our lids on every can by .002 of an ounce. This small change saves us some 20 million pounds of aluminum each year, which, in turn, conserves enough energy to power more than 7,000 homes. Overall, the can has been made about 40 percent lighter since the early 1970s. Anheuser-Busch reports solid waste management performance and achievements to the EPA’s WasteWise program annually. As a member of the WasteWise Hall of Fame, inducted in 2005, Anheuser-Busch also provides a leadership role in encouraging other organizations to join and report. 30 e n v i r o n m e n t va l u e c h a i n anheuser-busch, inc. 31 Value Chain In 2005, Anheuser-Busch began calculating the environmental impacts of its brewing operations across its entire value chain — which includes suppliers and a complex distribution network. sustainable agriculture outreach programs Anheuser-Busch sponsors and participates in the California Central Valley Rice Growers annual meeting, which provides a forum to discuss common issues and sustainable agriculture practices. These meetings often include field visits to illustrate key agricultural practices. In addition, Grower Advisory Councils have been established with key growers. The Councils meet several times each year to address concerns and share best practices. Each year, our Jonesboro, Ark., rice mill sponsors an Agriculture Business Conference. The conference covers present and future production, marketing, and environmental issues. More than 700 local growers and other agricultural interests attend this best-practice exchange. Anheuser-Busch operates a barley research facility in Fort Collins, Colo., to help develop new barley varieties. The varieties under development are designed to increase production and quality, thereby helping to ensure a steady, uncompromised supply of quality ingredients to our breweries. The environmental benefits include higher yields on less acreage, and reduction in irrigation water, fertilizers, pesticides, and energy to produce malting barley. Through all these outreach programs, Anheuser-Busch continues to evaluate and encourage elements of sustainable agriculture. e n v i r o n m e n t va l u e c h a i n 32 anheuser-busch, inc. The graphic below represents total water and greenhouse gas impacts across our value chain. Our objective is to identify highpriority areas for further cost reduction and environmental improvement, establish goals to reduce those impacts, and then work with suppliers and others along the value chain to encourage appropriate changes. Quantifying a total value chain inventory is a lengthy and complicated process with numerous variables related to climate, geography, soil conditions and other agricultural variables, sourcing of raw materials, manufacturing, transportation, and consumer habits. In addition, because there is no widely accepted guidance on setting boundaries, calculating impacts or validating data, the assessment presented in the graphic may be clarified in future reports as some of the aforementioned variables continue to be refined. This initiative has provided valuable insight on priority areas and reveals additional work that must be completed before meaningful goals can be set. Anheuser-Busch is working with members of the Beverage Industry Environmental Roundtable (BIER) to establish a common inventory methodology. BIER is a partnership of leading global beverage companies working together to advance the standing of the beverage industry on environmental stewardship. BIER currently is focused on creating a common industry protocol for determining a beverage company’s carbon footprint. Anheuser-Busch will be piloting the methodology and taking the next steps to gather and validate more specific data. Agriculture Sourcing As shown in the graphic, one of our priority areas is the sourcing of raw materials from agricultural suppliers. The water percentage shown under sourcing reflects total irrigation water applied to the crops. It does not consider rainfall, and does not reflect consumptive use. Anheuser-Busch works closely with its barley and rice growers to better understand and minimize these impacts. In 2007, several initiatives were sponsored to share best practices and expectations around maintaining high-quality specifications, maximizing crop yield, and optimizing the use of fertilizer and water. ANHUESER-BUSCH FOOTPRINT STATUS (percentage impact at each stage) Sourcing Suppliers Manufacturing Distribution Use/Disposal (e.g. agriculture irrigation and fertilizer, mining, refining, smelting, logging, and transportation) (e.g. primary and secondary packaging production, agriculture processing/malting, and transportation) (e.g. brewing and packaging) (e.g. transportation and operations — wholesale, retail, distribution center, and warehouse) (e.g. refrigeration, draft CO2, consumer use, and recycling) CARBON 29% 22% 20% 15% WATER 96% 1% 3% <1% 14% e n v i r o n m e n t w i l d l i f e h a b i tat p r e s e r vat i o n Wildlife Habitat Preservation Anheuser-Busch has a long history of conservation and land preservation for the benefit of wildlife. Our company and brands strive to conserve wildlife habitat through a variety of initiatives: Partnering with leading environmental organizations to conserve wildlife. A complete list of partners is available at www.anheuser-busch.com/pdf/ Partners.pdf; Managing the resources surrounding our facilities to promote wildlife habitat conservation and public education; Directly engaging in animal rescue, and partnering with outside conservation groups for the preservation of endangered species and their habitat; Educating the public, through our theme parks, on issues affecting wildlife survival. Managing Our Company Lands for the Benefit of Wildlife In 1988, Anheuser-Busch helped found the Wildlife Habitat Council (WHC), a nonprofit, non-lobbying 501(c)(3) group of corporations, conservation organizations, and individuals dedicated to restoring and enhancing wildlife habitat. Created in 1988, WHC helps large landowners, particularly corporations, manage their unused lands in an ecologically sensitive manner for the benefit of wildlife. More than 2 million acres in 48 states, Puerto Rico, and 16 other countries are managed for wildlife through WHC-assisted projects. Today, many of our facilities continue to participate in the WHC’s Wildlife at Work SM and Corporate Lands for Learning SM (CLL) programs. Respectively, these programs help employees and employers establish, develop and manage a wildlife program, leading up to WHC accreditation, and then share that “outdoor classroom” to help foster among children and adults a clear understanding of the interdependence of ecology, economics, and social structures in both urban and rural areas. In 2007, our Fort Collins, Colo., brewery and land application site received joint CLL certification and our Jonesboro, Ark., rice mill achieved CLL recertification. In total, Anheuser-Busch has four CLL certified facilities. anheuser-busch, inc. 33 In 2007, the Merrimack, N.H., brewery achieved WHC certification, bringing our total number of Wildlife at Work SM certified sites to 10. Additionally, the Cartersville, Ga., brewery received the Wings Over Wetlands Award and the Jonesboro rice mill was nominated for both the Pollinator Protection Award and the CLL of the Year Award. In addition, our theme parks SeaWorld, Busch Gardens and Discovery Cove are widely recognized as global leaders in wildlife rescue and habitat conservation and education. As one of the world’s leading marine mammal rescue and rehabilitation facilities, SeaWorld routinely assists with efforts to save wildlife around the world. Since 1970, our staff of animal care experts and veterinarians has helped rescue more than 15,000 animals. In 2007, the SeaWorld and Busch Gardens Conservation Fund, a non-profit foundation established and supported by Anheuser-Busch to promote species research, habitat protection, conservation education, and animal rescue, made grants of more than $1.3 million to 112 environmental and research organizations worldwide. In 2008, the fund announced grants of more than $1.5 million to 151 environmental and research organizations worldwide. Since its launch in 2003, the Fund has donated $5 million to more than 350 projects in 60 countries. environment compliance anheuser-busch, inc. Compliance Anheuser-Busch has a longstanding environmental audit program that involves teams of corporate environmental staff and external, third-party consultants. Facilities are typically audited every two to five years. Any deficiencies that are identified are promptly corrected, and, if necessary, changes are made to our management system to avoid recurrence. 2007 Environmental Fines, Penalties and Liabilities Newark Brewery, New Jersey, N.J. DEP Title V Air Permit — $5,000. The pressure drop for an air pollution control device was not properly recorded. Operating procedures have been changed to ensure proper records are kept. SeaWorld San Diego, California, San Diego Air Quality Management District Air Permit — $1,200. Equipment 34 was operated outside the allowed temperature range. Operating procedures have been changed to ensure equipment is operated within acceptable parameters. Houston Brewery, Texas, U.S. EPA Toxics Release Inventory (TRI) Reporting — $18,700. The brewery failed to report in connection with a lubricant, which contained a TRI chemical that was not disclosed by the supplier to be a reportable chemical. Our self-correction, following notice from the supplier of its mistake, resulted in this enforcement action for late reporting. A system correction has been implemented to ensure that we cross check compo sition information against the TRI list. As of year-end 2007, Anheuser-Busch had identified environmental remediation responsibility at 20 sites in the United States including three owned by the company. The company’s involvement at clean-up sites has historically been de minimis and is expected to remain so. Environmental awards and recognition During 2007, Anheuser-Busch and many of its facilities were recognized for their outstanding environmental performance. Click here for a complete list of the facilities that were honored. 35 people Proof 06 people overview anheuser-busch, inc. 36 Overview Anheuser-Busch’s worldwide reputation for quality and innovation is due to several key factors. None, however, can be more highly regarded than the thousands of dedicated employees who have, over a century of hard work, maintained this legacy. 2007 Full-time Employees Number* Worldwide 30,849 United States 22,470 United Kingdom/ Europe 340 Americas/ Mexico/Canada 40 Asia/China 8,000 Corporate 3,700 * Numbers are approximate. We offer the opportunity to work with experienced and knowledgeable professionals with diverse backgrounds in a modern, contemporary and exciting workplace. We also provide technical and leadership skills development. Anheuser-Busch employees’ growth can be measured both personally and professionally. Our People Department’s approach is to: understand the cultural characteristics that create and sustain success at the company and business unit level; acquire and develop talent that possesses the behaviors, competencies and skills needed to thrive in a successful, resultsoriented culture; and develop programs that recognize and reward results and performance through teamwork, collaboration and innovation. We achieve these objectives through a multi-faceted program incorporating Workforce Strategy and Planning, Talent Management, Total Rewards, and Employee Engagement. The company is committed to providing employees with a safe and healthy workplace and an inclusive work environment free from discrimination and harassment and that values the differences of our employees, shareholders and consumers. As of December 2007, Anheuser-Busch had 30,849 full-time employees worldwide, approximately 22,470 in the United States, 340 in the United Kingdom/Europe, 40 in the Americas/Mexico/Canada, and 8,000 in Asia/China. More than 18,000 of our full-time employees worked at the breweries, can and lid plants, rice mills, and malt plants. Corporate employees totaled approximately 3,700. p e o p l e e m p l o y e e h e a lt h a n d s a f e t y anheuser-busch, inc. 37 Employee Health and Safety Anheuser-Busch strives to keep our employees safe while on the job and provides programs that inspire them to take responsibility for their health and well-being. outreach Anheuser-busch participates in the following programs and organizations American Industrial Hygiene Association American Red Cross American Society of Safety Engineers ASTM International (formerly American Society for Testing and Materials) Grain Elevator and Processing Society National Fire Protection Association National Hearing Conservation Association National Safety Council The Wellness Councils of America At our theme parks, we also are committed to providing safe entertainment facilities for the public and expanding safe access to these facilities to better accommodate our guests. Our facilities maintain emergency planning measures to minimize risk and ensure guest and employee safety and work to be good neighbors in the communities where we do business. Employee Safety Performance The company’s strong, proactive approach to health and safety is backed by committed senior management, and subsidiary and facility-level teams. At the end of the year, 59 out of 96 sites had achieved their facility goals set forth in the 2007 Total Injury Safety Challenge, while 59 had achieved the 2007 Disabling Injury Safety Challenge goals. Each subsidiary also establishes priorities and strategies based on safety assessment of its needs. Total injury rate for 2007 was 3.62 per 100 employees, a 5 percent decrease from 2006 and 79 percent from 1991. Our goal was 4.33. Our 2008 goal is 4.03. Lost time injury rate for 2007 was 0.47, a 4 percent increase from 2006, but an 88 percent decrease from 1991 when tracking first began. Our goal was 0.39. Our 2008 goal is 0.37. On-Site Contractor Safety Anheuser-Busch selects contractors with a safety record that demonstrates a strong, well-designed and executed safety program consistent with our aggressive safety goals. In 2007, on-site contractors recorded nearly 5 million work hours on Anheuser-Busch projects. Contractor accident rates on Anheuser-Busch working sites are much lower than industry averages. p e o p l e e m p l o y e e h e a lt h a n d s a f e t y Internal safety audits are led by members of the Corporate Safety staff and supplemented by subsidiary or facility EHS managers, as appropriate. In 2007, 32 safety audits were performed. By the end of 2008, 12 safety audits will be completed, and 20 audits are planned for 2009. In addition, our Chemical Material Management Program provides a systematic approach for tracking the use of chemical materials within our facilities. This approach helps ensure workplace safety and compliance with applicable laws, regulations and internal requirements. 38 anheuser-busch, inc. lost time injury rate 2003 2004 2005 2006 2007 Lost Time Injury Rate (per 100 employees) 0.69 0.50 0.55 0.45 0.47 Lost Time Injury Rate Goal 0.55 0.50 0.47 0.42 0.39 Total Injury Rate (per 100 employees) 5.96 5.42 5.18 3.81 3.62 Total Injury Goal 6.44 5.80 5.04 4.66 4.33 7,598 6,922 5,683 9,516 9,033 Total Lost Work Days CHANGE (’03-’07) -32% -39% N/A* * 2006 and 2007 include Harbin The company has established a confidential phone number reporting system for facilities worldwide to encourage employees to report any suspected problems or concerns. Compliance In 2007, Anheuser-Busch received seven U.S. Occupational Safety and Health Administration (OSHA) citations with monetary penalties paid totaling $8,710. Procedural, training or physical modifications were promptly implemented to abate all citation elements. Outreach We participate in many regional, national and international safety, health and wellness programs and organizations to help us continually improve our health and safety record. Contractor accident rates Contractors (2007) Lost Time Injury Rate (U.S. Sites) 0.38 Lost Time Injury Rate (International Breweries) 0.00 Recordable Injury Rate (U.S. Sites) 1.45 Recordable Injury Rate (International Breweries) 0.53 Construction Industry Average (2006) 2.2 N/A 5.9 N/A p e o p l e e m p l o y e e h e a lt h a n d s a f e t y anheuser-busch, inc. 39 Perfect record 2007 National Safety Council Awards Anheuser-Busch, Inc. 4 breweries, 5 hospitality centers, and the Anheuser-Busch Center Anheuser-Busch International 3 locations Anheuser-Busch Companies 2 locations Busch Agricultural Resources 17 sites Busch Entertainment Corporation 3 theme parks Clydesdales 6 locations Packaging Group 10 facilities Transportation Group Manufacturers Cartage Wholesale Operations Division 3 branches excellence achievement 2007 National Safety Council Awards Anheuser-Busch, Inc. 11 breweries, 5 hospitality centers, Grant’s Farm, and the Anheuser-Busch Center Anheuser-Busch International 12 locations Anheuser-Busch Companies 2 locations Busch Agricultural Resources 19 sites Busch Entertainment Corporation 9 theme parks Clydesdales 6 locations Packaging Group 13 facilities Transportation Group Manufacturers Cartage Wholesale Operations Division 6 branches Wholesaler Environmental Awareness and Performance Anheuser-Busch has a strong network of more than 600 independent wholesalers in the United States. Our company is committed to helping our partners heighten their environmental and safety awareness and performance through a number of programs: Wholesaler Safety Partnership Program helps Anheuser-Busch wholesalers improve employee, fleet and property safety, as well as evaluate their safety management systems for compliance with OSHA regulations. We also provide free on-site consultations and assistance to wholesalers participating in the Weiser Insurance Program, which underwrites workers’ compensation, property and liability coverages exclusively for AnheuserBusch wholesalers. Wholesaler Integrated Learning Program delivers distance learning over the Busch Satellite Network, an internal satellite network linking wholesalers to Anheuser-Busch training services. The “Workplace Safety Series” airs programs addressing various aspects of safety and risk management. Sharing Knowledge Program shares best practices between the Wholesale Operations Division and the Anheuser-Busch Independent Wholesaler family in partnership with the Wholesaler Panel. Wholesaler Web Site provides safety partnership program information over the Internet. This Web site also contains information to help wholesalers comply with environmental regulations, conserve natural resources and implement recycling and beautification programs in their communities. 2007 National Safety Council Awards Perfect Record Award Fifty-five Anheuser-Busch locations achieved the Perfect Record Award from the National Safety Council for outstanding safety performance in 2007, completing the year with no disabling injuries. Excellence Achievement The National Safety Council also recognizes employers with lost time injury rates of less than half the average for their industry group (i.e., sites with the same North American Industry Classification System code). Eighty-six Anheuser-Busch locations received this Excellence Achievement recognition. Employee Wellness and Well-Being Anheuser-Busch’s comprehensive approach to wellness helps promote the health and well-being of our employees and their families. We invest in programs that encourage employees to take responsibility for their health. For 2007, our wellness strategies focused on prevention of chronic conditions, early detection of illness, weight management, tobacco cessation, fitness and nutrition, health and wellness education, and enhanced wellness reporting. As part of our corporate wellness programs, we offer a wellness Web site with a variety of resources; special health events and periodic health fairs; classes for weight loss and tobacco cessation; screenings for prostate, breast and skin cancer; heart-healthy menu entrees and accompaniments in our corporate cafeterias; contests to encourage annual wellness visits with physicians; special brewery sponsored sporting events, field days and competitions; and employee usage of our fitness facilities where available. p e o p l e e m p l o y e e h e a lt h a n d s a f e t y anheuser-busch, inc. Anheuser-Busch’s comprehensive approach to wellness helps promote the health and well-being of our employees and their families. ABCs of Good Health Wellness education and awareness are vital to employee health and safety. Our wellness program, The ABCs of Good Health, encourages employees to: Take ACTION Take responsibility for wellness. Know their BENEFITS Learn about and take advantage of wellness resources. Get their CHECK-UPS Schedule an annual preventive care visit. When employees or spouses visit their primary care physician, they are eligible to enter into an annual drawing. In 2007, about 19 percent of employees participated in the companywide contest, for their chance to win a grand prize package valued at $5,000 or one of 100 $50 secondary prizes. Ability for Life Throughout 2007, our breweries sponsored wellness events, fairs and informational sessions as part of the Ability for Life (AFL) program. AFL is a concept that focuses on employees and their families, emphasizes personal responsibility for safety and wellness in the home and workplace, stresses the importance of healthconscious decisions and provides valuable safety and wellness tools. Each of our U.S. breweries has an EHS steering committee that promotes health and fitness and features onsite workout facilities. Weight Management and Tobacco Cessation Programs In 2006, two reimbursement programs were initiated and offered to all eligible Anheuser-Busch employees, spouses/ certified domestic partners, and dependents. The weight loss/management program allows eligible individuals to request 100 percent reimbursement of the cost of Weight Watchers® when they meet certain weight loss goals (i.e. 10 percent of total body weight lost or 100 percent of goal weight). In 2007, 516 eligible participants lost over 4,700 pounds through the Weight Watchers ® offerings. The tobacco cessation reimbursement program provides eligible employees access to the program at no cost to them, once enrolled and engaged in the program. Individuals are also given the opportunity to request 100 percent reimbursement of the out-of-pocket costs for nicotine replacement therapy or non-nicotine prescriptions. In 2007, 330 employees participated in our tobacco cessation reimbursement program. Wellness Awards In 2007, our Newark, N.J.; St. Louis; and Williamsburg, Va.; breweries were three of 31 winners nationwide presented with the silver level “Well Workplace Award” from Wellness Councils of America (WELCOA). The Fairfield and Los Angeles breweries were awarded the California Fit Business Silver Award in 2007. 40 people employee development programs anheuser-busch, inc. 41 Employee Development Programs In today’s fast-changing world and as a part of the changing beer industry, Anheuser-Busch recognizes that learning is a lifelong process. The company encourages regular training, whether to learn the latest advancements on a job-related skill or how to better manage time. Our leadership training is primarily done in-house by our instructors and is the best way to maintain a consistent message and methodology. In fact, no one teaches our employees unless they’ve gone through our training certification program. As part of our Original Equipment Manufacturer Certification program, we train our vendors’ instructors to meet our expectations. New Employee Orientation and New-in-Position Program All employees attended a two-day new hire orientation covering a variety of topics, including company history, diversity, compensation, policies, safety awareness, and performance development. Our New-in-Position program is designed to ensure employees changing jobs have the skills and knowledge to be productive. On-The-Job Training Anheuser-Busch has a very successful formal structured on-the-job training program based on a gap analysis and using role model employees, detailed lesson plans and reference materials for each major piece of equipment or work process. E-Learning E-Learning classes allow employees to participate in training classes at their desks and cover topics including safety courses, Microsoft Office skills, advanced IT skills and professional development topics. Mentoring This voluntary program helps staff develop professionally and encourages networking, creativity, innovation and information sharing. Individual Development Plans All employees and managers are encouraged to complete an annual development plan, and managers meet with employees after six months regarding plan completion. Brewery hourly personnel are provided an individual training plan based on a personal/business need skill gap. Leadership Development All managers are encouraged to complete a core curriculum of courses so they can be effective leaders. Tuition Reimbursement AnheuserBusch and the Busch Entertainment Corporation offer a tuition reimbursement program for eligible employees interested in pursuing a bachelor’s and/or master’s degree. people worker rights Worker Rights Our company founder, Adolphus Busch, and his workers shared a great mutual respect for each other and established a strong relationship. Brewers and Maltsters Local #6, established in 1886, is the oldest union in continuous operation in the City of St. Louis. Anheuser-Busch continues to share a relationship with it as well as other unions in the International Union of the United Brewery Workmen of America. At the close of 2007, approximately 6,251 full-time domestic employees (28 percent) were represented by the International Brotherhood of Teamsters. Additionally 1,189 employees were represented by various other craft unions. Approximately 7,837 international employees of the company are members of other worker organizations, the vast majority of whom are not subject to collective bargaining agreements. anheuser-busch, inc. 42 people diversity anheuser-busch, inc. 43 Diversity The ever-changing consumer landscape (e.g., demographics, buying power, societal changes, legal environment) affects our ability to sell our products, hire and retain the best employees, and maintain our position as a good corporate citizen. Anheuser-Busch’s vision is to be recognized as a leader in diversity by our employees and external stakeholders. We drive business results through our commitment to diversity and fostering a culture of inclusion; whom we create our products for; and whom we support through charitable contributions, business purchases and alliances. Anheuser-Busch actively communicates information about our diversity initiatives through internal and external Web resources. We post the diversity and inclusion definitions on our internal diversity Web site and leverage our employee Intranet to create awareness of diversity topics or issues. We also engage employees by helping our Employee Resource Groups develop operating guidelines and by participating in their meetings. These groups are in their early stages with increased participation anticipated over the next year. Because diversity is an important initiative internally, we also emphasize this aspect in the way we reach out to potential employees. The company has supported INROADS, a non-profit organization that Effective workforce The means by which we aim to achieve the most effective workforce are by: Promoting equal employment opportunity Dispelling and eliminating any actual and perceived barriers people diversity anheuser-busch, inc. trains and develops talented minority youth for professional careers in business and industry, since 1973. We also work with the Society of Hispanic Professional Engineers (SHPE), the National Society of Black Engineers (NSBE), and the Society of Women Engineers (SWE) to attract minority and female engineering applicants. And we are constantly determining areas of outreach for a broader range of candidates. recognition and awards Monthly reports help us monitor progress of equal employment opportunity, and elimination of any actual and perceived barriers on current workforce, hires, terminations and promotions. In addition, we participate in surveys such as the Human Rights Campaign survey for the Corporate Equality Index. Ongoing activities in the area of diversity initiatives include presentations at Human Resources supervisor training, new employee orientation, and new manager’s training, as well as monthly updates to our internal diversity Web site. The company’s Diversity Council fosters a work environment and culture of inclusion through equal employment opportunity that respects and leverages the diversity of our employees to achieve our business objectives. Comprised of senior executives from divisions across the company, it aims to align its goals with business objectives, evaluates current programs, provides advice, helps facilitates plans for each business unit/division, manages 2007 Employee statistics Number Male Percent 16,341 72.46% Female 6,212 27.54% Minority Employees 5,375 23.83% In 2008, for the third consecutive year, Anheuser-Busch received a perfect score of 100 percent on the Human Rights Campaign Foundation’s “Corporate Equality Index,” which is an annual measure of how large companies in the United States treat their gay, lesbian, bisexual and transgender employees, consumers and investors. In 2007, the company was chosen by Hispanic Magazine for its annual “Corporate 100” list of companies offering the best opportunities for Latinos and support of the Latino community. Also in 2007, Anheuser-Busch was named “A Best Diversity Company” by Diversity/Careers in Engineering & Information Technology magazine readers. Employee Resource Groups, serves as an advocate, and presents to senior management. As of December 2007, employees were: 16,341 male (72.46 percent); 6,212 female (27.54 percent). Total minority figures were 5,375, or 23.83 percent of the workforce. Anheuser-Busch’s commitment to diversity extends beyond our own employees. We encourage the growth of women- and minority-owned firms through our Partners in Economic Progress program. Under this initiative, Anheuser-Busch purchased $720 million in quality goods and services during 2007, greatly expanding business opportunities for these firms. Anheuser-Busch’s partnerships with the following organizations also directly impact and further underscore our outreach with the business community. National Minority Supplier Development Council Business Consortium Fund United States Hispanic Chamber of Commerce 44 45 community Proof 06 community overview anheuser-busch, inc. 46 Overview At Anheuser-Busch, philanthropic outreach is an important part of our business philosophy. Our company has long held the belief that “Making Friends is Our Business,” and we extend that belief to the communities in which we do business and where our employees live and work. Anheuser-Busch and its charitable foundation have established a legacy of giving back. As early as 1906, our company offered needed assistance by donating money to the Red Cross to aid victims of the San Francisco earthquake. Our employees also enhance our charitable giving through their actions by serving as volunteers in their commu nities. All of these efforts serve as a point of pride for Anheuser-Busch. This is why our company and our employees support a variety of causes in our focus areas of education, health care and human services, minority leadership and economic development, civic, cultural enrichment and environmental stewardship. At Anheuser-Busch, we believe that serving our communities is simply good business. community philanthropic contributions anheuser-busch, inc. 47 Philanthropic Contributions A n h e u s e r- B u s c h a n d i t s c h a r i t a b l e foundation have established a legacy of giving back. Charitable Giving Anheuser-Busch’s charitable giving program is managed through direct corporate contributions and through a company-sponsored foundation. Over the past decade, the company and its charitable foundation have contributed more than $370 million to charitable organizations throughout the country to improve the communities in which the company does business and enhance the enjoyment of life for millions of people. We do not set a total spending target for charitable contributions; instead, we look to where we can make a positive difference by supporting causes in education, health care and human services, minority leadership and economic development, civic, cultural enrichment and environmental stewardship. During 2007, the company and foundation provided financial assistance to charitable organizations including the United Way, Teach for America, United Negro College Fund, Paralyzed Veterans of America, Boys & Girls Clubs of America, Girls Incorporated, the Hispanic Scholarship Fund, NAACP, and the Urban League, among others. Anheuser-Busch has also supported the National Asian Pacific American Bar Association (NAPABA) since its inception in 1989 by funding programs such as the NAPABA Law Foundation Anheuser-Busch Presidential Scholarship, the Thomas Tang National Moot Court Competition and the organization’s annual convention. In 2007, Anheuser-Busch received the NAPABA’s Excellence in Philanthropy Award in recognition of its ongoing support for the organization. community employee volunteerism anheuser-busch, inc. Disaster Relief The company and its foundation have a long history of providing critical assistance in response to natural disasters that dates back to the early 1900s. In 2007, these contributions included $500,000 to the American Red Cross to aid relief efforts for victims of the Southern California wildfires. The company also contributed $250,000 to the St. Louis Chapter of the American Red Cross to become the founding sponsor of the Red Cross Ready Rating Program. This program is designed to guide businesses, schools and other organizations in becoming better prepared for emergencies by helping them develop and refine their preparedness plans. Anheuser-Busch also is a leader in providing canned water in crisis situations. In 2007, the company donated 2.1 million cans of fresh drinking water to aid victims of natural disasters and relief workers. 48 This included nearly 500,000 cans of drinking water and nearly 15,000 cans of 180 Energy Drink for the victims of the Southern California wildfires and aid workers. The supplies were shipped to independent and company-owned wholesalers in Southern California and were distributed by relief agencies. Anheuser-Busch also donated $500,000 (RMB 3.5 million) to the Red Cross Society of China and more than $1.1 million (RMB 7.7 million) or 425,000 cases of fresh drinking water to aid relief efforts for victims of the earthquake that struck the Sichuan province in Central China in May 2008. Since 1988, the company has donated more than 63 million cans of drinking water to victims of natural disasters. More detailed information on AnheuserBusch’s charitable giving program, including the Guidelines for Charitable community here’s to the heros anheuser-busch, inc. Giving, can be found at www.anheuserbusch.com/CharitableGiving.html. A summary of the organizations AnheuserBusch contributed to in 2007, along with the corresponding funding levels, is available at www.anheuser-busch.com/ ContributionsSummary.html. Employee Volunteerism At Anheuser-Busch, we believe that serving our communities is simply good business. Employee Volunteer Grant Program There are thousands of different issues and causes close to our employees’ hearts. Many give countless hours to help worthy organizations. One way Anheuser-Busch applauds their commitment and supports their efforts is through our Employee Volunteer Grant Program. Through the program, gifts ranging from $50 to $300 are awarded to eligible nonprofit organizations upon application from an Anheuser-Busch employee who 49 is actively involved with the organization. Examples of some causes that have received grants are available at www.anheuser-busch.com/ VolunteerGrants.html. Anheuser-Busch allows employees to take time off with pay for periodic company-sponsored events to assist in emergencies such as wildfires or flooding. Matching Gift Program Education is the foundation for tomorrow’s leaders. As the importance of education and the costs associated with it continue to rise, Anheuser-Busch is working to increase support for educational institutions. The AnheuserBusch Foundation matches employee and retiree contributions to educational institutions and funds through the Matching Gift Program. This program matches up to $10,000 a year for each individual donor. Through the Matching Gift Program, Anheuser-Busch and our employees have raised more than $10 million to support education over the last five years. A year-by-year breakdown of matching grant amounts can be found at www.anheuser-busch.com/ MatchingGift.html. Here’s to the Heroes From the Civil War through Operation Iraqi Freedom, Anheuser-Busch and its employees have stood firm in support for America’s armed forces for more than 150 years. Whether lending technical expertise, materials and facilities to bolster America’s defense, or raising funds for veterans and dependants of military families, Anheuser-Busch has never wavered in its commitment to America’s troops or their families left behind. We are proud to support numerous programs that help benefit our nation’s military, including our Here’s to the Heroes program. community litter prevention anheuser-busch, inc. Anheuser-Busch launched Here’s to the Heroes in February 2005 to acknowledge the service of military men and women and the sacrifices made by their families. The program provides a single day’s free admission to any one SeaWorld or Busch Gardens park, Sesame Place, Adventure Island or Water Country USA for the service member and as many as three of his or her direct dependents. Here’s to the Heroes has welcomed more than four million U.S. and coalition armed forces and their families since its inception. For 2007, more than 750,000 individuals took advantage of this program. Complete information on Here’s to the Heroes can be found at www.herosalute.com. Litter Prevention Anheuser-Busch is a charter member of Keep America Beautiful’s (KAB) anti-litter campaign that began in the 1950s and since that time, has supported KAB, the nation’s largest litter prevention organization. In 2007, KAB and Anheuser-Busch launched a new $50,000 grant program that partners KAB affiliates with our independent wholesalers to execute local litter prevention, recycling and beautification projects. Based on the success of this program, we solicited grant proposals in fall 2008 for 2009 implementation. Anheuser-Busch employees and volunteers in St. Louis take part in the company’s annual Mississippi River clean up. 50 51 accountability Proof 06 a c c o u n ta b i l i t y o v e r v i e w anheuser-busch, inc. 52 Overview At Anheuser-Busch, we are guided by our commitment to ethical business practices, our abidance by all applicable state and federal regulations, and our support of local and national economies through our tax and wage contributions. Economic Impacts Anheuser-Busch makes substantial contributions to the national, state and local economies around the world where we do business. Our operations translate into jobs, investments and tax revenues. It all adds up to strengthening communities across the world and making them a better place to live and work. At year end 2007, Anheuser-Busch employed 30,849 people full-time, worldwide. With employee-related payroll and other compensation costs totaling $2.8 billion, the company is a direct source of a significant number of good-paying jobs. In 2007, Anheuser-Busch also purchased $5.7 billion in supplies and held $18.4 billion in capital investment in the United States. Additionally, Anheuser-Busch’s national family of independent distributors in the United States employed more than 39,000 people who generated an estimated payroll of $2.5 billion. These distributors purchased approximately $1.2 billion in supplies and held $3.6 billion in capital investment. Several of these operations have been family-run businesses since the end of Prohibition and have become integral parts of the local economy and culture. Anheuser-Busch paid $1.8 billion in U.S. federal beer excise taxes in 2007. At the state level, the company paid $891.5 million in state beer excise taxes, with an additional $370 million paid in taxes and fees. a c c o u n ta b i l i t y e t h i c a l c o m p l i a n c e anheuser-busch, inc. 53 Ethical Compliance Our company and its employees strictly follow a Code of Business Conduct and Ethics, which outlines our unwavering commitment to truth, candor and objectivity in our relationships with business partners and customers. The good name and reputation of Anheuser-Busch rests with how well we maintain these values. Our goal is not only to comply with the laws and regulations that apply to our business, but also to strive to abide by the highest standards of business conduct. All Anheuser-Busch employees are expected to adhere to this Code, which is available at media.corporate-ir.net/ media_files/nys/bud/corpgov/bud_ codeofethics.pdf. Our goal is not only to comply with the laws and regulations that apply to our business, but also to strive to abide by the highest standards of business conduct. Employees are trained on the Code every three years and sign a statement of compliance annually. At the end of 2007, more than 13,400 employees had completed the Code computer-based training course. a c c o u n ta b i l i t y a p p r o a c h t o p u b l i c p o l i c y anheuser-busch, inc. 54 Approach to Public Policy Anheuser-Busch has a long tradition of active and responsible corporate citizenship. As America’s largest brewer, an owner of adventure theme parks and packaging operations, as well as one of the world’s largest recyclers of aluminum cans, our company deals with a broad range of issues, and we monitor all legislation for possible impacts on our business. Like many businesses, we participate in the political process in various ways at all levels of government. This includes bipartisan support of candidates and political organizations throughout the country. For example, Anheuser-Busch and its subsidiaries contributed approximately $1.9 million to state and local candidates and organizations in 2007. At the federal level, the Anheuser-Busch Political Action Committee (AB-PAC) allows company employees to join together collectively and participate in the political process. Voluntary contributions by employees allowed the AB-PAC to provide approximately $994,000 in support of federal candidates and organizations in 2007. Through a matching-grant program, Anheuser-Busch matches participants’ AB-PAC contributions with a donation to a charity of their choice. In 2007, the company contributed approximately $970,000 to more than 500 non-profit 501(c)(3) organizations and has donated more than $5.3 million to approximately 1,000 organizations since 2000. Anheuser-Busch also actively develops strong working relationships with public officials, emerging leaders and influential members of the communities where we live and work. In many cases, we work with outside consultants who are familiar with the legislative process, as well as the federal, state and local laws relevant to the company’s business. All of our public policy expenditures and activities comply with relevant federal, state and local laws, as well as the company’s approval processes, and reflect our continued commitment to supporting the political process. We strive to ensure that our actions work to support the best interests of our company, employees, shareholders, and consumers, as well as the communities in which we do business. your feedback… Thanks for reading what we have to say — now we want to hear from you. Please take a moment to tell us what you think of this report by completing a brief survey . For additional information on Anheuser-Busch’s CSR efforts, please visit us as the following Web sites: Anheuser-Busch, Inc. www.beeresponsible.com www.familytalkonline.com www.ourpledge.com www.preventdontprovide.com www.alcoholstats.com www.collegetalkonline.com One Busch Place St. Louis, MO 63118 314-577-2000 www.anheuser-busch.com www.designateddriver.com