AS A LEADER IN OUR INDUSTRY, WE BELIEVE THAT CBA HAS AN IMPORTANT RESPONSIBILITY TO SET THE BENCHMARK FOR ENVIRONMENTAL STEWARDSHIP.

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1 2015 ANNUAL REPORT

2 AS A LEADER IN OUR INDUSTRY, WE BELIEVE THAT CBA HAS AN IMPORTANT RESPONSIBILITY TO SET THE BENCHMARK FOR ENVIRONMENTAL STEWARDSHIP. In fact, we care so deeply about making a positive impact not just in the way our beers taste but in the way we brew them that every year we commit to sharing our sustainability goals and progress. For our 3rd annual sustainability report, we ve outlined some of our biggest highlights and achievements over the last year (it was a busy one!), as well as identified some top priorities for 2016 because there s always room to improve. In 2015, we set out to continue building on our sustainability track record, which includes keeping our Portland water usage well below industry average, increasing renewable energy usage, and diverting more than 98% of our waste from landfills through innovative recycling programs. Last year, we also increased our investment in our local communities with a new program designed to encourage our employees to get involved and support the local causes that matter most to them. Each of our breweries in Hawaii, New Hampshire, Oregon, and Washington contributes to our overall sustainability program in unique ways that align with their local communities and environments from our Widmer Brothers brewery in Portland partnering with Oregon Wild to preserve our natural water ways, to our Kona brewery in Kailua-Kona setting out to build Hawaii s first craft brewery with a resource recovery center. We hope you enjoy our latest Annual Sustainability Report. Please reach out to us if you have any questions or would like to learn more. - Julia Person Sustainability Manager Craft Brew Alliance For more information, write to

3 WATER H2O Every Drop Counts In 2015, our breweries continued to achieve an industry-leading water-usage ratio, with our Portland brewery setting the benchmark at just 3.5 gallons of water used for every gallon of beer produced. Here in the Pacific Northwest, we are lucky to have ample access to clean water the main ingredient in our great-tasting beers. Widmer Brothers Brewing went a step further last year, working with Oregon Wild to found the Oregon Brewshed Alliance, which supports public engagement and support of our watersheds. For 2015, Widmer Brothers launched Brother Nature Pils, with 100% of proceeds going to the cause.and growing across the state, recognizes that great beer begins with clean water, and strives to protect Oregon beer at its source. Being active in this brewing community coalition helps us advocate for protection of forests and watersheds through public education, outreach, and events. BUILDING COMMUNITY Getting Involved Being sustainable within our breweries is a priority, but we re also committed to supporting our local neighborhoods where we live and play. Here are some of the ways we re getting outside and working with our communities: In 2015, we testified in front of Portland City Council to support the region s Climate Action Plan. The Widmer Brothers backed Obama s Clean Power Plan by publishing an op-ed in Oregon, and a letter to the editor in support of Washington s Carbon Pollution Accountability Act. CBA s Earth Day celebrations included transforming used beer barrels into herb gardens, a beach cleanup, watershed restoration, skate park construction, and planting 100 tomato plants in a local community garden. Kona Brewing s small-batch Makana Series beers raised over $57,000 for four Hawaii non-profit organizations dedicated to preserving the state s precious natural resources. CBA employees volunteered over 100 hours of their personal time to support a range of non-profits. ENERGY USAGE Shrinking That Carbon Footprint We offset 100% of our Portsmouth brewery s power with Renewable Energy Certificates, but that doesn t mean we ve stopped innovating. In 2015, we installed a combined heat and power plant that harnesses biogas captured from byproducts of our brewing process to produce renewable energy on-site. Our Woodinville Brewery teamed up with Washington State s Extension Energy Program and the Department of Ecology to conduct a three-day audit of our steam system, resulting in increased insulation, fixed leaks, and other savings opportunities. Live utility monitoring systems in every mainland brewery let us proactively manage our electricity, natural gas, and water usage. How s that for real time? Across our breweries, we measure our Scope 1 and Scope 2 CO2 emissions to get a holistic look at CBA s true impact. In 2015, our total CO2e (carbon dioxide equivalents) per barrel of beer decreased 11%. CO2e/ BBL Water bbl/bbl Landfill Diversion % % RECYCLING Waste Not, Want Not Our largest brewery, Portland, keeps 60 tons out of the landfill each month, for a 99.5% waste diversion rate. In 2015, we partnered with Portland State University s Community Environmental Services to conduct a waste assessment of the remaining.5% of our landfill-bound waste, using the findings to implement improvements like moving to reusable containers in the pub and recycling coasters and corks. Our Woodinville Brewery improved its recycling rate 12% by composting, collecting miscellaneous plastics, and reducing non-recoverable materials. We also launched CBA PaperCuts, a new company-wide program to reduce our paper usage by a whopping 33%. We re on track to meet our goal of saving 41 trees, or 489,806 sheets of paper in the first year!

4 100 Widmer Brothers Hefe bikes given away with the help of the Bicycle Transportation Alliance. 4 Number of refreshing, philanthropic beers brewed for our first annual Makana Series, which raised $57,000 for Hawaiian non-profits Miles we collectively biked for Portland s annual Bike Commute Challenge, a workplace competition to encourage bicycle commuting. 3.5 Gallons of water used for every 1 gallon of beer in Portland. 104 Hours CBA volunteered to support local non-profits and charities. 194 Pints served on Earth Day in support of the Oregon Brewshed Alliance, including Brother Nature Pils. 24,816 Tons of spent grain repurposed as local cattle feed. 5.57M Number of beer cartons with cardboard partitions removed.

5 At CBA we know the power of great partners, and we re excited about the impact that we make with our partners in sustainability. SPORTS AN D S U DS

6 It s a great feeling to do some good and be rewarded for it. Last year, we identified four areas we would focus on. Here s a snapshot of how we did: Harnessing Biopower We kicked off an innovative project in Portsmouth to capture renewable energy from biogas, which will be online by summer Packaging Efficiency City of Portland SUSTAINABILITY AT WORK Gold Certified Business OREGON S HEALTHIEST EMPLOYER We removed partitions from all of our 12-pack carriers that will benefit 5.5 million packages in Additionally, our Portland Brewery has converted to bulk glass, fulfilling our goal of a zero-waste to landfill packaging line. B-Impact Assessment We partnered with Net Impact at Portland State University and B-Lab to measure our social and environmental impact, scoring 82 points, exceeding the B-Corporation threshold of 80 points. We are using the assessment as a roadmap to build improvements within our sustainability program. Reduce Our Energy Usage By 3% GREEN RESTAURANT CERTIFIED All five of our pubs are certified EPA GREEN POWER PARTNER Portland, Portsmouth, Woodinville MASTER BREWERS ASSOCIATION OF THE AMERICAS BREWERY AWARD First Runner Up, Excellence in Sustainability for Portland s HVAC optimization project Second Runner Up, Portsmouth s green electric vehicle charging station For more information, write to sustainability@craftbrew.com In 2015, our continued focus on energy reduction enabled us to keep our energy usage flat as our breweries embarked on strategic long-term projects to increase efficiency and capacity. So while we didn t quite meet our goal of reducing our energy use by 3%, our therms and kilowatts per barrel of beer produced still remained well below industry average. IN 2016 WE WILL FOCUS ON: Environmental Health & Safety. In 2016, we are increasing our focus on environmental compliance, to raise the bar on things like reducing air emissions and supporting innovative sustainability initiatives. Designing our new Kona Brewery with a resource recovery center that will help us reduce water usage well below a typical craft brewery and generate electricity and heat through bio-power. Supporting CBA PaperCuts, which is on track to help CBA reduce our paper usage by one third, equivalent to 41 trees, in the first year alone.