CSR Summit – Belief / Action / Results

Scott Delzoppo October 31, 2007

2Sustainability – What does it mean?

World Commission on Environment and Development defines sustainability as:

“forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs.”

At Foster’s we interpret that as:

“Continually improving our practices to ensure we minimise negative impacts and maximise the positive social, environmental and economic outcomes of our global business operations.”

3Corporate Sustainability Roadmap

• Define sustainability within the context of your business or environment (make it real)

• Provide a platform for passionate and informed people to contribute to the agenda (internal and external stakeholder engagement)

• Build the business case

• Lead from the top / good governance

• Benchmark against best practice

• Communicate / disclose progress

• Build in to corporate culture

4What are Foster’s sustainability issues?

• Challenge to maintain the social license to operate

- health / responsible drinking policy / marketing

• Climate change

- impact on supply, carbon footprint, water efficiency

• Ability to attract and retain the best people

• Supply chain management

- ethics / environmental impacts

5Governance

• Foster’s Leadership Team oversee sustainability agenda, set priorities & monitor progress

• Corporate affairs & subject experts (including ad-hoc project teams) work with the business to deliver

• Key sustainability issues also captured and managed through Enterprise Risk Management framework

• Annual Sustainability Report charts successes & areas for further work

6Communication response

• Pursuing & promoting our company sustainability agenda

• Taking all appropriate media opportunities & continuing to build media relationships

• Ramping up industry cooperation & resourcing

• Maintaining active dialogue with non-media influencers, including governments & ngo’s

• Investing significant time and resources in DrinkWise

7Achievements to date

• Participant in global benchmarking program Corporate Responsibility Index (CRI) since inception in 2004. Improved rating from 65.17 to 89.27

• Introduced Group Sustainability Taskforce in 2005.

• Launched Foster’s in the Community in 2005.

• Elevated to FTSE4Good Index in 2006

• Released first Sustainability Report in 2006

• Released second report in 2007

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• Launched last week

• Reports on material issues, following global sustainability reporting standards

• Global coverage where possible

• Internal communications plan rolling out to increase employee awareness

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Portfolio issues, responsible marketing, supplier & customer relationships, ethical procurement etc

Engagement, developing human capital

Foster’s in the Community, making a contribution where we live & work

Resource & process efficiency, best practice, H&S

Report format built on four workstreams:

OUR MARKETPLACE

OUR PEOPLE

OUR COMMUNITY

HEALTH, SAFETY & ENVIRONMENT

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Renewing our commitment to participate in the National Packaging Covenant

Delivery of more than 500 national and regional brand campaigns with only one execution found to have breached industry standards

Product innovation delivering a portfolio of reduced carbohydrate, calorie and alcohol beverages

Enhanced standard drinks labelling on consumer packaging

Global implementation of ‘Enjoy Responsibly’ guidelines

Marketplace highlights 2007

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4.5% reduction in water use, 2.8% reduction in GHG emissions in 2007

Committed to 10% reduction in water and energy use per unit of production by 2011

Yatala brewery - world leader in water saving using 2.3 litres of water per litre of beer produced, against accepted worlds best practice of 4-5 litres

Introduction of Solar energy at Napa winery, California

Reduced rate of recordable and lost-time injury rates

88% of global solid waste reused or recycled

HS & E highlights 2007

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Further development of capability programs

Establishment of Women’s Leadership Discussion Group

Continuous support for our people through periods of change

Updated Ways of Working, further embedding a positive ‘One Foster’s’ culture

People highlights 2007

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$4.2 million total community investment in 2007, including:

Responsible Drinking: $2.1 millionEmployee Involvement: $.2 millionCommunity Partnerships: $1.6 million

Community Partnerships with Alannah and Madeline Foundation, Red Dust Role Models, Movember, The Smith Family and Conservation Volunteers Aus

282 ‘You care, we care’ employee donations in 2007

$49,000 raised in employee matched giving

Community highlights 2007

14On the Agenda…Developing an appropriate path through carbon challenge

Further work to tighten marketing standards

Better promotion of sustainability agenda & achievements, particularly internally

Continued incorporation of global business into Sustainability @ Foster’s

Extend programs supporting Indigenous community development