S U S TA I N A B I L I T YR E P O R T 2 0 1 6

T o i n s p i r e c o m m u n i t y , c o l l a b o r a t i o n ,a n d m e m o r a b l e m o m e n t s …

a l l f o r t h e l o v e o f b e e r !

W E L C O M E T O C B A S U S TA I N A B I L I T Y

2016 was a great year for CBA in terms of advancing our sustainability focus and supporting our local communities. From our Kona Brewery’s award-winning Makana Beer Series that has raised over $100,000 toward preserving Hawaii’s natural resources, to Widmer Brothers’ long-term commitment to protecting Oregon’s watersheds, to Redhook’s achievement as the first Salmon-Safe brewery in Puget Sound, we are proud of our

brands’ deep commitment to serve as stewards of sustainability. Last year, our brands donated over $230,000 in beer and sponsorships to supportour local communities. In the following pages, we share some of our favorite highlights from Kona Brewing, Widmer Brothers and Redhook, includ-ing key achievements within our three focus areas: carbon intensity, waste prevention, and local giving. We hope you enjoy reading about our efforts and look forward to seeing you at one of our brewpubs in the future. If you’d like to learn more about our sustainability efforts, reach out to sustain-ability@craftbrew.com.

Cheers!Julia PersonCorporate Sustainability Manager, Craft Brew Alliance

“Whether it’s sourcing glass bottles locally or right-weighting to decrease raw material, water and energy use, CBA is progressive and committed to acting responsibly on behalf of the environment, consumers and the industry.”

James Nordmeyer, Vice President, Global Sustainability, Owens-Illinois Glass

W O R L D C L A S S C R A F T 3 - Y E A R S U S TA I N A B I L I T Y TA R G E T S

In 2016 we rolled out new standards for every aspect of our operations —including quality, brewing, innovation, safety, and sustainability —to ensure continuous improvement in our processes as part of our commitment to be- coming World Class Craft.

REDUCE GREENHOUSE GAS EMISSIONS BY 10% BY 2019

N 2016, WE TRACKED OUR SCOPE 1 & 2 CO2 EMISSIONS PER BARREL AT 27.9 LBS.

27.9 LBS

CO2 EMISSIONS/BBL

CO2

DIVERT 99.8% OF OUR WASTE

WE’RE ON OUR WAY TO ZERO WASTE!

IN 2016, WE DIVERTED 99.2% THROUGH WASTE PREVENTION EFFORTS.

DOUBLE EMPLOYEE ENGAGEMENT IN

COMMUNITY BUILDING EFFORTS

IN 2016, WE REWARDED OUR EMPLOYEES WITH 1 HOUR OF PTO FOR EVERY

2 HOURS VOLUNTEERED.

R E D U C I N G C A R B O N I N T E N S I T Y

In 2016, we completed our first Life Cycle Analysis on a bottle of Kona beer to understand our biggest opportunities to reduce our carbon impact.

One bottle of Longboard generated 392 grams of CO2 emissions. That’s well within the environmental benchmark. And we’ve already started working with our suppliers on ways we can improve!

W H AT ’ S N E X T :D E S I G N I N G O U R N E W B R E W E R Y F O R S U S TA I N A B I L I T Y• We’ll be the first brewery in Hawaii with a Resource Recovery center. • We’ll be able to generate renewable energy and recycle water to use for cleaning and irrigation in our new brewery.

reject waterto sewer [brine]

7:1

RENEWABLE ENERGY

RECLAIM WATER

fertilizernatural

RESOURCE RECOVERY CENTER

100,000bbl/yr

from 46,000 bbl/yr to

BREWINGBYPRODUCTS

<3:1 water to beer ratio

<3:1

9.3 million

WATERper year

SAVESgallons of

of electricity6,000mmbtu

850mwh

ENABLES PRODUCTION INCREASE

After

Before

• CIP• YEAST• TRUB

KONA RESOURCE RECOVERY CENTER

DID YOU KNOW? 990 solar panels generate 50% of the Kona brewery’s electricity!

KONA BREWING SUSTAINABILITY HIGHLIGHTS

CO2

W A S T E P R E V E N T I O N

L O C A L G I V I N G

On the islands, every drop counts! We irrigate our herb garden using condensate from our air conditioner.

We donated 20,000+ crayons to the Crayon Recycling Initiative which melts down and remakes crayons for donation to children’s hospitals.

Both of our Kona brewpubs are Green Restaurant Association certified. In 2016, our pubs received the Surfrider Ocean Friendly Restaurant Platinum Award for practices such as not using styrofoam.

Our Makana Beer Series helped raise $100,000 to support local non-profits committed to preserving Hawaii’s natural resources and helped us earn the 2016 MBAA Brewery Award of Excellence.

KONA BREWING SUSTAINABILITY HIGHLIGHTS

DID YOU KNOW? Kona’s on-site herb garden grows the habaneros and chives that go into our unique small-batch beers and food served at our Kona brewpub.

REDUCING CARBON INTENSITY

We restored 10 million gallons of water to critically de-watered Oregon streams with Water Restoration Credits through our partner Bonneville Environmental Foundation.

We’ve been working with the Energy Trust of

Oregon since 2006 to reduce our carbon

impact. With their help, we hit 22.06 lbs CO2/BBL of scope 1& 2 emissions.

What’s next? In 2017, we’re excited to embark on a CO2 recovery project that will reclaim CO2 for use in the brewing process.

We signed on with Renew Oregon to

support a clean energy future in our home

state.

As a founding partner of the Oregon Brewshed® Alliance, Widmer Brothers has pledged its commitment to clean water.

Speaking of world class efficiency, we also hit 10

kWh/BBL and 1.1 therms/BBL, the

metrics which help us tackle carbon intensity.

10 KWH1.1 THERMS

PER BARREL!

WIDMER BROTHERS SUSTAINABILITY HIGHLIGHTS

Proceeds from our Weekend for Water promotion with other Oregon craft breweries supported the Oregon Brewshed® Alliance in their efforts to protect forests and watersheds, because great beer begins with clean water.

DID YOU KNOW? Widmer Brothers uses 3.77 gallons of water for every gallon of beer. Our goal in 2017 is to hit 3.47.

3.77 gallons of water per beer

3.47 gallons of water per beer

2017 GOAL:

2016 TOTAL:

CO2

W A S T E P R E V E N T I O N

In our journey to zero waste, we sent 13,000 tons of spent grain to

local farms, which helped us divert 99.5% of our

total waste from landfills.

We donated over $84,000 in beer and

sponsorships to local charities and organiza-

tions in our Portland community.

Widmer Brothers employees cycled 4900 miles during the City’s Bike More Challenge

month.

Our PaperCuts program helped us reduce paper

usage by 34%, saving 627,000 sheets of paper...or 53 trees! We celebrated by

planting more trees!

P PERCUTSCUT THE PAPER • SAVE THE TREES

Our Widmer Brothers pub avoided using 4,000 disposable

containers by convert-ing to reusable cartons

for employee meals.

We joined 100 volunteers from local Portland businesses to clean

up Kelley Point Park in North Portland. Together, we cleared

2,500 square feet of invasive blackberry, rebuilt 500 feet of

trails, and removed 20 lbs of litter.

WIDMER BROTHERS SUSTAINABILITY HIGHLIGHTS

DID YOU KNOW? Widmer Brothers is proud to host a BikeTown station right outside of our brewpub.

“As a supplier to Widmer Brothers,we’re able to help their sustainability goals by supplying materials made from 100% recycled paperboard with a minimum of 35% post-consumer waste.” —Graphic Packaging International

L O C A L G I V I N G

Widmer Brothers is a Green Street Steward in partnership

with the City of Portland and the local Surfrider chapter to care for our neighborhood bioswales that

filter pollutants from stormwater.

We recycled 687 tons of cardboard, glass and plastic, and recouped the

market value.In 2017, our goal is to use even less of that stuff to begin with!

Every year, we sponsor Seattle’s long-running St. Patrick’s Day Dash, which

supports local organizations that provide youth services in our community.

This year, we’re tapping two Salmon- Safe beers with proceeds going to Mid Sound Fisheries Enhancement Group. In 2016, Redhook became the first Salmon-Safe brewery in Puget Sound for our work to protect the Sammamish River salmon habitat.

W H AT ’ S N E X T : Our new Redhook brewpub, opening in Summer 2017, will feature a high efficiency brewing system (HEBS) within a LEED-certified building.

We helped our community raise over $200,000 towards local causes. The annual Piscataqua Oysterpalooza promotes safe oyster shell recycling!

We hosted a Party for the Planet with our partners at the Green Alliance and Hodgson Brook Watershed to plant trees and build rain gardens.

L O C A L G I V I N G

REDHOOK SUSTAINABILITY HIGHLIGHTS

REDUCING CARBON INTENSITY

W A S T E P R E V E N T I O N Last year, our Washington brewery diverted even

more waste—from 98.5% to 99.2%.

Redhook was recognized as a Best Workplace for Waste Prevention & Recycling in Washington, and we earned an extra star in New Hampshire as a Green Restaurant.

Doing more with less: Our Portsmouth brewery and pub run on

100% renewable power. We are proud to be an EPA

Green Power Partner, recognizedin their leadership club.

Our Portsmouth pub’s electric vehicle charging

station lets guests power up for free!

We offset 3.9 million kWh using renewable energy credits and will generate 0.5 million kWh annually by harnessing biopower from our wastewater treatment process.

D I D Y O U K N O W ?

REDHOOK SUSTAINABILITY HIGHLIGHTS

“Ardagh supplies Redhook with 90%+ recycled content glass, one of the highest available worldwide, drastically minimizing use of virgin material, which has lowered the facility’s energy consumption.”

— Robert J. Ganter, Sr. Vice President & General Manager, Ardagh Inc.

Redhook Brewery StatsServing Size: 1 year of sustainable savingsSavings per serving:

10.9 tonsPlastic28.3 tonsCardboard52.7 tonsGlass91.6 tonsCompost

2,519 tonsSpent Grain

CO2