China Resources Beverage (Holdings) Company Limited ("CR Beverage" or the "Company") pays high attention to the impact of climate change on ecosystem, economy and society, and actively responds to national requirements for "Carbon Peaking and Carbon Neutrality". The Company implements proactive greenhouse gas management actions in the course of the Company's business operations and along the Company's value chain consistently promotes the balance between corporate development and environmental sustainability.

1 Purpose

In order to actively respond to the severe challenges posed by global climate change, CR Beverage has formulated and implemented this policy in the high sense of responsibility and foresight. This policy aims to systematically manage greenhouse gas emissions generated from our operations and across our value chain and ensure our business activities comply with national and international environmental standards and emission reduction requirements.

2 Scope of Application

This Policy applies to CR Beverage and its subordinate entities at all levels. All business partners, including cooperative partners, contractors and suppliers, are encouraged to comply with this Policy.

3 Laws, Regulations and Internal Systems

CR Beverage complies with laws, regulations and industry standards related to greenhouse gas emissions management in the regions where it operates, including but not limited to the National Climate Change Adaptation Strategy 2035, the Interim Regulations on the Administration of Carbon Emission Trading and the Environmental Protection Law of the PRC. Meantime, the Company has formulated a number of internal policies such as the Greenhouse gas management system, the CR C'estbon Carbon Neutrality Goals and Implementation Roadmap and the Action Plan for Carbon Peaking of China Resources C'estbon Beverage (China) Co., Ltd. , to ensure that the environmental impact potentially caused by our business operations meets legal and regulatory requirements.

4 Policy Content

4.1 Organizational Structure for Climate Change Response and Management

The Company establishes a top-down Greenhouse Gas Management Implementation Committee. The Company sets up a Carbon Emission Leadership Group to implement national and the CR Group's decisions on carbon emission management, distributes carbon emission assessment indicators and tasks of the CR Group, review and approve carbon emission assessment indicators, and ensures the resource input and effective implementation of carbon emission activities. The Company forms a Carbon Emission Working Group to promptly understand the progress of carbon emission activities at all levels and report it to the leadership Group and investigates environmental incidents and illegal emissions of pollutants.

4.2 Objectives of Greenhouse Gas Management

Taking into account the emission reduction requirements of national or local governments, the industry, the customers and the CR Group's greenhouse gas development and reduction requirements, the Company develops "Dual Carbon" goals and action plans, formulates and implement measurable and quantifiable short-term, medium-term and long-term absolute emission reduction targets or emission intensity reduction targets in order to reduce carbon emissions, and tracks the progress of such targets in the annual sustainable development report of the Company.

4.3 Greenhouse Gas Reduction Plan

Based on the emission reduction targets, the Company formulates appropriate greenhouse gas reduction plans for all operational processes (including production, transportation and logistics) and presents them in the Annual Business Plan. The greenhouse gas reduction plan should include departments responsible for the work, emission reduction methods and steps, planned timetable, funding and measurement methods of reduction effect. The business plan report should include specific control measures on greenhouse gas, evaluation of target achievement, annual emission analysis and forecast of carbon neutrality roadmap.

4.4 Carbon Footprint Verification and Product Carbon Footprint Accounting

·  The Greenhouse Gas Management Implementation Committee is responsible for promoting the Company's carbon footprint verification work and strictly implementing the definition of emission source scope, identification of emission sources, emission calculation, data verification and other operating procedures;

·  The Company prepares greenhouse gas emissions verification report according to the requirements of the ISO 14064 standards, and organizes internal and external resources to verify such report to ensure the accuracy of data;

·  The Company conducts carbon footprint accounting of core products according to the requirements of the ISO 14067 standards, and continuously promotes carbon footprint certification of the products.

4.5 Disclosure of Greenhouse Gas Emission Data

The Company prepares a detailed annual greenhouse gas verification list based on annual emission results obtained according to the Greenhouse Gas Management System. The list should be archived and submitted for review by management representatives and be approved by the chairman of the Committee. The Company should publicly disclose the greenhouse gas emission data in the annual sustainable development report.

4.6 Research, Development and Application of Green Technologies

·  The Company continues to strengthen the research, development and application of green technologies, and develops more low-carbon products to facilitate low-carbon economic transformation;

·  The Company conducts research on packaging lightweighting, low-carbon packaging and packaging substitution, and actively promotes new materials, technologies, equipment and processes to reduce environmental burden of packaging materials;

·  The Company actively uses renewable energy, reduces unnecessary energy consumption and improve energy efficiency of the business operations.

4.7 Environmental Rights Trading

The Company actively participates in environmental rights trading, such as carbon emission rights trading markets and voluntary greenhouse gas reduction trading markets, to effectively control greenhouse gas emissions and achieve "Dual Carbon" goals. At the same time, the Company strengthens the monitoring and verification of greenhouse gas emissions, strictly abides by relevant laws and regulations, and utilizes recognized platforms to ensure open, fair and impartial environmental rights trading, thus achieving a win-win result on both economy and environmental protection.

4.8 Response to Climate Change

The Company identifies and discloses climate risks and opportunities under the proposed framework of the Task Force on Climate-related Financial Disclosures (TCFD), and responds to the long-term expectations for climate response through forward-looking risk management. The Company also assesses the relevance and impact of climate risks on the businesses, and develops targeted emission reduction paths and strategies, so as to explore potential climate opportunities while reducing climate risks.

5 Revision and Review

The Company will regularly review this Policy and make appropriate revisions when necessary.