Heineken SR 080415
Heineken SR 080415
Heineken SR 080415
Report 2014
Brewing a Better World
Introduction
Appendices
CEO Foreword
Brewing a Better World
What we said and what weve done
Our value chain
Benchmarks and achievements
Stakeholder dialogue
This PDF document summarises our main progress and activities in 2014. More
detailed supporting information can now be found in the sustainability section
of our Company website, including:
The G4 reference table
Governance and measurement of Brewing a Better World
How we support the UN Global Compact principles
More than 30 case studies
Videos
More than 40 local sustainability reports and fact sheets.
For more information, see:
theheinekencompany.com/sustainability
3
4
6
8
10
11
15
20
28
33
37
41
45
46
Appendices
1: KPMG Assurance Report
2: Reporting basis
3: Overview of environmental
performance
4: List of Operating Companies
48
49
53
Reference information
57
55
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On the cover: the Cola de Caballo Waterfall at the Cumbres de Monterrey National Park, Mexico. Our
brewery in Monterrey is one of the partners of the Monterrey Metropolitan Water Fund. The fund has
started a project to reforest severely degraded land in this important natural area. The ultimate aim is
to restore and preserve the watershed of the San Juan River, which supplies more than 4 million people
in and around Monterrey.
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Introduction
Appendices
CEO foreword
Welcome to our 2014 Sustainability Report
In 2014 we celebrated our 150th anniversary and re-committed to
the journey that Gerard Adriaan Heineken began in 1864 to create
a successful and sustainable business.
Our responsibility to do so was brought home to me in January this
year when I attended the opening of our latest brewery in Ethiopia.
Located on the outskirts of Addis Ababa the brewery is as technically
advanced as any and forms part of a EUR310 million investment.
As I spent time talking to employees, local farmers, politicians and
members of the local community, it struck me that what we are
doing in Ethiopia is a proxy for the way we are trying to run our
business everywhere, but particularly in emerging markets.
We invest in brewing capacity ahead of the curve. We create jobs
and build skills for the future. We work with local communities in the
supply of agricultural raw materials, in ensuring balanced access to
water and in having a responsible approach to enjoying our products.
By doing this we build businesses that grow with, and not at the
expense of local communities.
Brewing a Better World
In 2014, we made two important changes to Brewing a Better World.
Firstly, we made two existing focus areas more explicit:
Promoting health and safety
Growing with communities
These are added to our four existing commitment areas:
Protecting water resources
Reducing CO2 emissions
Sourcing sustainably
Advocating responsible consumption.
Secondly, we set a more challenging water target for 2020, moving
from 3.7hl of water per hectolitre of beer to 3.5hl/hl. We have also
challenged ourselves to try and find ways to reach a higher target of
3.3 hl/hl in those areas we define as water-stressed.
Improving our performance
In part, we made these changes as a result of our continued positive
performance in 2014 across all our commitment areas. Our water
efficiency performance of 3.9 hl of water per hl of beer means we
have achieved our 2015 target a year early.
We are also a year ahead in two of the three areas where we want to
reduce CO2 emissions. In production, this was the result of increased
energy efficiency and greater use of renewables. In cooling, we have
improved the average energy saving of our fridges to 45% compared
with the 2010 baseline year. Our overall progress was recognised by
an A rating and a position in the CDP Climate Performance
Leadership Index.
In distribution, reducing CO2 emission is a more challenging task. Our
overall emissions increased by 3.6%. This was caused by significant
changes in distribution activities in two major markets Brazil and
Mexico. Excluding these two markets, our emissions in distribution
actually fell by 5.9%.
Introduction
Appendices
Do
Good
Build
Trust
Save
Cost
Mitigate
Risk
Impact
Society
Commercial
Opportunity
Strategic Focus
Introduction
Appendices
Our strategy
Our focus
Protecting
water
resources
Reducing CO2
emissions
Sourcing
sustainably
Advocating
responsible
consumption
Promoting
health
and safety
Growing with
communities
Our values
Materiality diagram
high
Responsible
Consumption
Water
Importance to stakeholders
Sustainable
Sourcing
Human Rights
Labour
Conditions
Biodiversity
Diversity
Waste
Community
Investment
Economic
Impact
Gene
Technology
Energy &
Carbon
Packaging
Health &
Safety
Business
Conduct
Remuneration
low
high
Introduction
Appendices
Indicator
Achieved
We achieved our 2015 target a
year early and decreased water
consumption to 3.9 hl/hl
On track
Sixteen (70%) of our production
units have drafted a Source
Water Protection Plan
Achieved
We passed our 2015 target
a year early and achieved
a 30% reduction compared
with 2008, resulting in 7.2 kg
CO2-eq/hl in 2014
More to do
Our overall emissions increased
by 3.6%. This was caused by
significant changes to
distribution activities in two
major markets Brazil and
Mexico. Excluding these two,
our emissions in distribution
actually fell by 5.9%
Achieved
We passed our 2015 target
a year early. 99.8% of the
152,000 fridges that HEINEKEN
purchased in 2014 were green.
The average reduction of CO2
emissions improved from 40%
to 45% in 2014, compared with
the baseline year 2010
Baseline 2008. 2 Twenty-three production units. 3 Baseline 2008. 4 Baseline 2010. 5 Baseline 2010/2011,
scope is WE, CEE and Americas, 24 of our largest operations: Belgium, Bulgaria, France, Ireland, Italy, Netherlands,
Portugal, Spain, Switzerland, UK, Austria, Belarus, Croatia, Czech Republic, Greece, Hungary, Poland, Romania,
Russia, Serbia, Slovakia, Brazil, Mexico, USA.
Achieved
On track
More to do
Not on track
Introduction
Appendices
Indicator
On track
In 2014 we sourced sustainably:
barley: 15%
hops: 62%
bittersweet apples
for cider: 28%
On track
Four-step Supplier Code
Procedure operational in 25
Operating Companies. Rollout
planned for all remaining
Operating Companies in 2015
Achieved
Dance More, Drink Slow
campaign activated in 44
markets. Investment supporting
our dedicated responsible
consumption campaign
exceeded 10% of total media
spend in our main markets,
representing more than 50%
of the Heineken global volume
Make responsible
consumption aspirational
through Heineken
On track
50 markets are now in scope,
an increase from 40 in 2013.
Of these 48 have at least one
partnership
On track
An implementation plan
was developed for the Global
commitments in 2013. In
2014, the signatory companies
produced a Commitments
Progress Report outlining
our actions to date in
implementing these
Based on volume. 2 Based upon tonnage. 3 With local sourcing we refer to sourcing within the region of Africa & Middle
East. 4 Investments dedicated to responsible consumption messaging with regards to Heineken brand communication.
This includes the Dance More Drink Slow and Sunrise campaign, UEFA Champions League-specific responsible
consumption boarding and other specific activations at festivals and events. 5 Market scope, covering in total at least 50%
of Heineken global volume. We focus our efforts on the larger markets where we can make the biggest impact; out
of scope are those markets where we are unable to run our responsible consumption campaign due to local (legal and
religious) restrictions on alcohol advertising. 6 Out of scope are Islamic markets and small export markets where we dont
have staff or a presence.
1
Achieved
On track
More to do
Not on track
Introduction
Appendices
Malting
Brewing
Packaging
Distribution
Customer
Consumer
Focus areas
Water
CO2
Sourcing
Responsible consumption
Enjoyment of life
Respect for people and planet
Introduction
Appendices
1. Agriculture
In 2014, we began auditing our supplier sustainability practices with SGS, an external audit
company. We continued our work with the Sustainable Agriculture Initiative (SAI) and Cool Farm
Alliance, and helped German hop suppliers to set new sustainability standards: in 2014, 153 were
approved as sustainable, based on assessment against their industry sustainable agriculture
code. This represents about 25% of the total German hop volume, and we aim for 100% in the
coming years. We established a new Public-Private Partnership on local sourcing in Nigeria and
extended our local sourcing initiative in Haiti.
2. Malting
We malt barley in our own malteries and also buy malt from third
parties. We focus on energy and water reduction programmes and
continue to engage our suppliers in discussions related to these
topics. In 2014, energy consumption per ton of produced malt was
more than 10% lower compared with 2008. For water consumption
this improvement was even larger: 26%.
3. Brewing
4. Packaging
5. Distribution
6. Customer
Most of our beers and ciders are enjoyed cold and are cooled
by fridges or draught equipment at the point of sale. We
continue to strengthen the green standards for our cooling
equipment, which not only reduces energy consumption but
also costs. In 2014, our customers saved in total EUR19.91
million in electricity charges, equal to the annual electricity
consumption of 46,000 households in the Netherlands.
7. Consumer
T
he savings have been calculated through
a summation of annual saved electricity per
fridge x country specific average electricity price
Introduction
Appendices
Dow Jones
Sustainability Index
FTSE4Good
Score of
Supersector score
Transparency Benchmark
Other benchmarks
Moved up to
Ranked
7th/500
99/100
1st/F&B sector
10
Introduction
Appendices
Stakeholder dialogue
Increase
transparency
in tax.
Engage consumers
and customers more
actively in the
sustainability journey.
How we responded:
How we responded:
How we responded:
W
e elaborate in this years report about
our tax strategy
W
e added our consolidated total tax
contribution and included a breakdown
per tax category
W
e continued to initiate market-based
economic impact studies.
Focus on building
partnerships to
demonstrate leadership
and realise change.
More communication
on HEINEKENs
sustainability activities.
How we responded:
How we responded:
W
e extended the number of
partnerships addressing alcohol-related
harm in our markets
W
e started Twitter sessions on a variety
of topics including local sourcing
W
e established a new Public-Private
Partnership on local sourcing in Nigeria
W
e explored our first global partnership
with the United Nations Industrial
Development Organization (UNIDO),
which was announced in Q1 2015.
11
Introduction
Appendices
Stakeholder dialogue
Customers and
consumers
Employees
Suppliers
Stakeholder
engagement
ich HEINEKEN NV engaged at a global level in 2013
& international
keholder groups with which HEINEKEN NV engaged at aNGOs
global
level in 2013
organisations
ustry
ations
Governments
Industry
Customers and
consumers
associations
Stakeholder
engagement
Consumers
Industry
associations
Suppliers
Suppliers
Stakeholder
engagement
organisations
Employees
loyee
ntatives
Governments
Investors
Governments
Employee
representatives
Stakeholder
engagement
Consumers
Employee representatives
Employee
representatives
We maintain constructive
relationships
organisations
with employee representatives. On a
European level we have regular meetings
with the HEINEKEN European Works
Council (EWC). On a local level we expect
all Operating Companies to respect
the right of freedom of association and
Investors
12
Introduction
Appendices
Stakeholder dialogue
ich HEINEKEN
NV engaged at a global level
Governments
Wein
are2013
now addressing a large number
Stakeholder
engagement
nments
Industry associations
ployee
entatives
holder
gement
loyees
Suppliers
Governments
Investors
Industry
Employees
associations
NGOs & international
Investors organisations
Consumers
Investors
Employee
representatives
Employees
13
Introduction
Appendices
Stakeholder dialogue
NGOs and international organisations
Suppliers
er
nt
NGOs & international
organisations
nments
eholder
gement
Suppliers
loyees
Local stakeholder dialogue
In addition to stakeholder dialogue at a
global business level, we have also been
active in our markets. Our 36 local
sustainability reports provide us with a strong
basis for discussions with local stakeholders.
Some markets, such as the UK and France,
actively involved stakeholders in structured
roundtable sessions.
36 local sustainability reports published in 2014.
14
Introduction
Appendices
15
Introduction
Appendices
We have decreased
water consumption by
23%
3.9hl/hl
NEW 2020 TARGET
3.5*
3.9
2014
2013
4.1
2012
4.2
4.3
2011
4.5
2010
2009
4.8
2008
5.0
Brno
2.9
CZECH REPUBLIC
Sango Ota
NIGERIA 42%
Elblag
POLAND
2.9
Ijebu Ode
NIGERIA
25%
ywiec
POLAND
2.7
Aba
NIGERIA
28%
El Gouna
EGYPT
25%
Bedele
ETHIOPIA 42%
Saint Denis
LA RUNION 2.9
Top 5 performing
breweries based on
performance in hl/hl
Top 5 performing
breweries based on
reduction in %
Danang city
VIETNAM
2.9
16
Introduction
Appendices
M SAVED THROUGH
WATER EFFICIENCY
m
ETHIOPIAater
w
Almost halved ce 2011
sin
n
io
pt
um
cons
Water
2009
2.4
2010
2.2
2011
1.9
2012
1.0
2013
1.0
2014
2.4
Total
10.9
Market
Nr. of sites
Workshops
Source Water
Vulnerability
Assessment
Source Water
Protection
Plan
Mexico
Completed
Completed
Draft
Spain
Completed
Completed
Completed
Ethiopia
Completed
Completed
Draft
Egypt
2015
2015
2015
Nigeria
Completed
Completed
Draft
Algeria
Ongoing
Ongoing
Ongoing
Tunisia
On hold
On hold
On hold
On hold
Indonesia
Completed
Completed
Draft
70
Indonesia
Algeria
Nigeria
1
2
17
Introduction
Appendices
1,000
MONTERREY
CUMBRES DE AL PARK
NATION
Water
ropolitan
Monterrey Metished in 2013
bl
ta
es
nd
Fu
Reforestation projects started to preserve the San Juan River watershed in Monterrey, Mexico.
Case study:
Indonesia Saving water through
bamboo and biopori
Multi Bintangs water protection
programme focused on bamboo
planting to conserve water resources
and increase the incomes of local
communities through ecotourism, plus
biopori holes to preserve rainwater and
prevent flooding. See case study.
18
Introduction
Appendices
Wastewater treatment
It is our policy to ensure that effluent from
our production units is treated before
discharge to surface water, either by our
own or third- party treatment.
In 2014, our production facilities discharged
an estimated total of 25.9 kton of organic
load into surface water, compared with an
estimated value for 2013 of 23.1 kton.
Wastewater treatment plant, Zoeterwoude brewery
(The Netherlands).
25.9
23.1
24.4
19
Introduction
Appendices
Wieselburg Brewery, Austria. 50% of thermal energy from renewable sources through an innovative cooperation with an adjacent saw mill.
20
Introduction
Appendices
Cooling
6%
17%
Beverage production
10%
Distribution
Packaging material
production
31%
Agriculture
8%
Agriculture grains
Agriculture adjuncts
7%
1%
Beverage production
17%
Brewery on-site
Brewery upstream
Brewery downstream
Malting process
Processing adjuncts
7%
8%
2%
Distribution
10%
Green distribution
Other distribution
Inbound distribution
Returnable packaging
OW packaging (supplier efficiency)
OW packaging (waste system efficiency)
Cooling
6%
1%
3%
6%
5%
1%
31%
3%
17%
11%
28%
5%
11%
13%
Based on 92% of the HEINEKEN Company Volume in 2012. The carbon footprint calculated in 2012 is approximately 68 kg CO2- -eq/hl
(greenhouse gas emissions in CO2 equivalent per hectolitre). The HEINEKEN Company carbon footprint will be updated every three years.
The next update is planned for the 2015 Sustainability Report and will include the acquisition of HEINEKEN Asia Pacific.
Remark: Total percentage may not add up to 100% due to rounding. Green distribution = HEINEKEN-controlled outbound distribution.
21
Introduction
Appendices
REDUCTION IN CARBON
EMISSIONS SINCE 2008
97 MJ/hl
7.2 kg CO2-eq/hl
2014
2014
7.2
2012
107
119
2009
9.8
122
2008
10.4
2008
116
2010
9.3
2009
110
2011
8.8
2010
103
2012
8.4
2011
97
2013
7.7
2013
M SAVED THROUGH
ENERGY EFFICIENCY
m
2009
Thermal
Electricity
5.2
2.5
2010
2.8
3.5
2011
11.2
3.0
2012
5.1
1.5
2013
9.5
0.0
2014
12.4
6.8
Total
46.2
17.3
63.5m
saved since
2009
22
Introduction
Appendices
Bottling line at the Brand brewery in Wijlre. Built in 1340, it is the oldest brewery in the Netherlands.
Thermal energy1
In 2014, we achieved a specific thermal
energy consumption within beverage
production of 67.7 MJ/hl, a reduction of
6.6% compared with the previous year.
Specific thermal energy consumption
MJ/hl beer + soft drink + cider + water
67.7 MJ/hl
2014
2013
67.7
73.0
2012
77.0
Electricity consumption
Electrical energy relates to the amount
of electricity used on-site. We reduced the
overall electricity consumption by more than
4% to 8.0 kWh per hl in 2014. An energy
reduction programme in the Western Europe
region accelerated electricity reduction.
Activities were targeted towards areas such
as packaging, compressed air and cooling.
By sharing best practices the region further
reduced its electricity usage to 7.7 kWh/hl.
ITY
ALL ELECTRIC
REDUCED OVER BY 4% IN 2014
N
CONSUMPTIO
8.0 kWh/hl
Gaseous fuels
Coal
Liquid fuels
Biomass and Biogas
64.0%
2014
0.3%
2013
8.4
2012
8.4
33.7%
2.0%
8.0
23
Introduction
Appendices
Solar energy
More than 4,000 solar panels were installed
on the roof of HEINEKENs Tadcaster
Brewery in North Yorkshire, UK. The panels
are expected to generate approximately
876MWh each year, which is enough to
power 185 British homes.
Wind energy
In Zoeterwoude, the Netherlands, we started
building four wind turbines at the end of the
year. These should be operational by the
end of 2015, and will produce 30-40%
of the energy needs for that site.
30-40
24
Introduction
Appendices
SAVINGS ON
CUSTOMERS
ELECTRICITY
BILL
-45%
average energy saving
with our fridges
25
Introduction
Appendices
75%
THE SUB HAS AN ENERGY LABEL OF A+,
MAKING IT 75% MORE ENERGY EFFICIENT
THAN OUR PREVIOUS SYSTEMS.
Glass bottle
35%
Aluminium can
35%
Secondary or tertiary
12%
Returnable
8%
PET bottle
8%
Steel can
2%
26
Introduction
Appendices
0.50 kg/hl
2014
0.50
2013
68.4
0.54
2012
0.51
% recycled of totals
Total waste
96.8
34
2014
34
2013
2012
35
29
31
2014
31
2013
33
2012
42
Case study:
France Integrated recycling
system gives disposable glass a
second life
TOTAL WASTE
ATE
RECYCLING R
27
Introduction
Appendices
Sourcing sustainably
Our 2020 commitments
Thth Nzoka, a rice farmer from Kingabwa, near Kinshasa (Democratic Republic of Congo).
She stars in our Growing Together campaign, which highlights our commitment to local sourcing in Africa. Click here to watch the video.
28
Introduction
Appendices
Sourcing sustainably
Barley field in Spain, where HEINEKEN has a partnership to preserve the habitat of endangered bird species.
target 2015
See our case studies for more on our biodiversity initiative in Spain and our cooperation
with German hop suppliers. For more details see also our GRI 4 Reference Table.
OUR 2015
TO MEET
ET
ON TRACK E SOURCING TARG S
BL
LE
A
SUSTAIN EY, HOPS AND APP
FOR BARL
29
Introduction
Appendices
Sourcing sustainably
Our brewery in Surinam sources its rice locally from farmers in Nickerie.
D
OL INTRODUCE
COOL FARM TO MEASURE AND
ERS
TO HELP FARM
SIONS
CO
2 EMIS
E
AG
MAN
Message in a bottle
At the heart of HEINEKENs sustainable
sourcing efforts are our farmers. To honour
them, a new campaign has been created:
Legendary 7. To bring the unique stories of
seven green pioneers to life, the campaign
uses augmented reality via the Blippar
App. One blipp of a Heineken bottle
or coaster and it leaps to life on your
smartphone.
30
Introduction
Appendices
Sourcing sustainably
RCING
LOCAL SOU
ials sourced
tural raw materacross Africa
ul
ric
Ag
es
tri
locally in 11counMiddle East
and the
These initiatives include six Public-Private
Partnership projects run in collaboration
with the Dutch Government, International
NGO EUCORD (European Cooperative
for Rural Development) and with local
governments and NGOs, which will further
stimulate our local sourcing performance.
Our projects involve around 120,000 farmers
households, benefiting 840,000 family
members (based on an average household
in Africa of seven persons).
One of the initiatives is called CREATE,
which stands for Community Revenue
Enhancement through Agricultural
Technology Extension. This Public-Private
Partnership with the Dutch Government
and EUCORD was launched in 2013
and operates in three markets: Ethiopia,
Rwanda and Sierra Leone.
>120K
Local sourcing projects involved more
than 120,000 farmers, benefiting
840,000 family members
L ocal sourcing means all agricultural raw materials used in HEINEKENs production processes within the Africa
&Middle East region that were cultivated in a country in the region. It is measured against total agricultural raw
materials used in production in the AME region and the unit of measurement is tonnes delivered to the brewery/
production site. The outputs are expressed in both absolute weight and as a percentage of total raw materials.
31
Introduction
Appendices
Sourcing sustainably
Contract terminations
We believe continuous improvement can
help suppliers comply with our Code. If
there is no commitment to improve, or any
corrective measures, HEINEKEN will cease
to do business with that supplier. In 2014,
we stopped doing business with 176 suppliers
(56 in 2013), triggered by the suppliers
lack of commitment to our Supplier Code
Procedure. Specifically, in 139 cases these
were ended due to the supplier not being
willing to sign the Supplier Code. In the
remaining 37 cases, the end of the
relationship was triggered by the suppliers
refusal to comply with our supplier
monitoring requirements.
WE STOPPED
W
WITH 176 SU ORKING
TRIGGERED BYPPLIERS,
LACK OF
COMMITM
SUPPLIER CO ENT TO OUR
DE PROCEDU
RE
32
Introduction
Appendices
33
Introduction
Appendices
OW
RE, DRINKmSL
kets
DANCE MOtiv
ated in 44 ar
Campaign ac
Reported complaints
Despite our efforts to communicate
responsibly, in 2014 we received 17
complaints about our marketing messages.
These claims connected to different
communications campaigns, and came
from seven different countries. All complaints
were investigated and resolved, except for
two which are still pending. We also received
a fine of EUR30,000 this year for one historic
upheld complaint. This related to HEINEKEN
advertising in France during the Rugby World
Cup 2007, judged non-compliant with
Frenchlaw.
Case study:
Global Enjoy Responsibly Day
We launched our first global Enjoy
Responsibly Day, to raise awareness within
our business about the impact of alcohol
abuse and to work together to make
moderation the social norm. In total,
46markets activated the event, reaching
more than 40,000 employees. The initiative
won the European Excellence Award for
Best Internal Communications Campaign
in 2014. See case study.
34
Introduction
Appendices
MARKET
PARTNERSHI S WITH
PS
ALCOHOL-REL TO ADDRESS
ATED HARM
Case study:
Croatia Dedicated microsite
tackles under-age drinking
In partnership with womens portal
www.zena.hr and psychological centre
TESA, HEINEKEN Hrvatska launched a
microsite dedicated to addressing
under-age drinking.
The site contained information on topics
such as the factors influencing teenage
alcohol use and how to talk to minors
about drinking and establish boundaries.
It also provided online counselling with
psychologists and a forum where parents
could chat and share their experiences.
35
Introduction
Appendices
Case study:
USA Advanced technology
breathalysing, in partnership
with Alcohoot
HEINEKEN USA signed a three-year
partnership agreement with Alcohoot,
the worlds first smartphone breathalyser.
The Alcohoot attachment allows
consumers to determine their Blood Alcohol
Content. The supporting app helps locate
a taxi company, or nearby restaurant,
if they need a safe ride home or food.
See case study and video.
36
Introduction
Appendices
37
Introduction
Appendices
Indicator
2015 target
Production
Accident Frequency
10% reduction
Outside production
Company-wide
E-learning training
Sales
2,000
Fatalities
It is a matter of considerable regret that in
2014, 15 people lost their lives working within
the HEINEKEN Company (compared with
nine fatalities in 2013). This remains a point
of ongoing attention and concern for us.
38
Introduction
Appendices
Hungary
rs in Martf brewery.
No accident for 2 yea
Safety data
Production only*
2012
2013**
2014**
2014
11
11
328
244
227
1,297
112
108
102
159
10,220
6,950
7,619
29,515
28,215
27,793
27,381
79,538
1.16
0.88
0.83
1.63
36
25
28
37
* As in previous years we provide the trends and figures on production unit data. This includes the production facilities
and the logistics as they happen at the production facilities.
** 2013 and 2014 data from Global reporting system (2012 from different system used in previous years reports).
*** No data available for contractor accidents outside production Q1-Q3 in Asia Pacific region
Accident frequency
Cases/100 FTE, HEINEKEN
Production Units
Accident severity
Lost calendar days/FTE, HEINEKEN
Production Units
0.83
2014
2013
WE CONTINUED THE
REDUCTION OF ACCIDENTS
WITHIN PRODUCTION
Company-wide
2012
28
2014
0.83
0.88
2013
1.16
28
25
2012
36
39
Introduction
Appendices
WE LAUNCHED 3 NEW
SAFETY E-LEARNING
MODULES, BRINGING
THE TOTAL TO 15
Accident simulation at Athenian Brewery, Greece.
MEDICAL CONSULTATI
ON
CARRIED OUT BY OUR S
ON-SITE MEDICAL ST
AFF
40
Introduction
Appendices
In 2014, the APB Foundation (HEINEKEN Asia Pacific) celebrated 20 years of giving and announced a three-year partnership with Willing Hearts, a volunteer-run organisation
in Singapore providing daily meals and other support services for people in need.
41
Introduction
Appendices
Cash
In kind
Management
Time
75%
14%
9%
2%
Community investment
Charitable gifts
Commercial initiatives
25.1m
2014
2012
38%
25.1
2013
76%
13%
11%
10%
9%
18.9
13.5
1. Direct contributions
In 2014, HEINEKEN Operating Companies
contributed the equivalent of more than
EUR25 million, including cash, time, in-kind
donations and management costs. This is an
increase of more than 30% compared with
2013, partly due to significant investments by
our Mexican operations in the Monterrey
Metropolitan Water Fund. Our focus is on
seeking long-term community investments
through partnerships that are aligned with our
business and sustainability agenda, such as
addressing alcohol misuse and local water
challenges. In some markets, foundations such
as the Cruzcampo Foundation in Spain and
the APB Foundation in Singapore, actively
support local communities in the field of
education, employment, social welfare and art.
We encourage all employees to become
actively involved in the communities in which
we live and work. In 2014, more than 16,000
employees in 40 markets took part in
volunteering activities, spending in total
an estimated 60,000 hours.
We are member of the London
Benchmarking Group and use its
reporting model to calculate our
community investments.
29%
14%
Western Europe
Americas
Africa and Middle East
Central and Eastern Europe
Asia Pacific
What we supported in 2014
Education
23%
Responsible Consumption
19%
Arts/Culture
14%
Environment
13%
Social Welfare
8%
Economic Development
8%
Health
6%
Emergency Relief
2%
Other support
7%
Case study:
UK Act for Addaction
HEINEKEN UK employees donated 1,148
volunteer hours and raised EUR246,000 for
Addaction in 2014. Addaction, with whom
HEINEKEN has partnered since 2005, is the
UKs largest specialist alcohol and
substance addiction charity. See case study.
42
Introduction
Appendices
Constructing
20 rainwater
tanks in DRC.
opia.
niques in Ethi
Farming tech
9bn
Excise duties paid
53%
25%
10%
8%
4%
2
43
Introduction
Appendices
HEINEKEN Spain supports young talent in finding a job or setting up a business in Andaluca, a region facing high unemployment rates. See case study.
44
Introduction
Appendices
R E S
P
THE CODE OF
BUSINESS
CONDUCT
PA
J O Y M E
D
E RECEIVEGH
W
,
4
1
0
2
N
U
I
RTS THRO
324 REPOAK UP SERVICE
OUR SPE
C T
O N
S I
34
Implemented in 34 languages
across our business worldwide
Employee at our Kruovice
Brewery, Czech Republic.
For more on our values and behaviours
and why they are important, see our website.
45
Introduction
Appendices
MYANMAR
46
Introduction
Appendices
CAMBODIA
47
Introduction
Appendices
Our engagement was designed to provide limited assurance on whether The Report is
presented fairly, in all material respects, in accordance with the Sustainability Reporting
Guidelines G4 of the Global Reporting Initiative. We do not provide any assurance on the
achievability of the objectives, targets and expectations of HEINEKEN. Procedures performed
to obtain a limited level of assurance are aimed at determining the plausibility of information
and are less extensive than those for a reasonable level of assurance.
Conclusions
Based on the procedures performed, as described above, nothing has come to our attention
to indicate that The Report is not fairly presented, in all material respects, in accordance with
the Sustainability Reporting Guidelines G4 of the Global Reporting Initiative.
Amsterdam, 8 April 2015
KPMG Sustainability,
Part of KPMG Advisory N.V.
W.J. Bartels RA, Partner KPMG
48
Introduction
Appendices
Reporting systems
Reliability of data
Since 2011, we have been widening the scope of our data sets,
particularly beyond production sites only. In order to achieve this,
HEINEKEN has worked on implementing a more robust data
collection process, involving strengthening the ownership of data,
continuous development of systems, training and internal and
external assurance activities. Various data points are confirmed
internally through staff and systems that have been established to
collect and review that data. This is established at local Operating
Company, Regional and Global levels. Subject matter experts
are involved at various levels to validate and challenge the data
and process.
HEINEKEN is continuing to work on formulating and applying
uniform definitions and instructions for reporting purposes,
in order to improve the accuracy and comparability of data.
Where possible, standard calculations are being built into
our systems to minimise errors.
Despite the continuous strengthening of our data collection
processes and the fact that our Operating Companies and data
owners have reported to the best of their knowledge, in good faith
and in accordance with agreed procedures, it is not possible to verify
100% of data contained in our report. Our Operating Companies are
at differing maturity levels with regards to implementing the various
data collection processes. Where we have any concerns, however,
it is highlighted in the report.
Global Audit is involved on a continuous basis to monitor developments
in KPIs and reporting processes. A yearly risk assessment is performed
on all KPIs to determine the year-end audit approach. For this purpose,
Global Audit is tracking the methods for measurement and
consolidation, and the developments in terms of newly acquired
Operating Companies or implementation of systems.
In 2014, this resulted in a specific audit on the newly globally
implemented Accident Reporting & Investigation Software (ARISO)
system, resulting in a number of improvement suggestions.
Apart from the annual review of the full reporting process, including
monitoring the quality of review in various levels, the data ownership,
the clarity of definition sets, and instructions to the Operating
Companies, Audit is involved on a local level to perform data
validation audits. For 2014 this included:
Eighteen Integrated Brewery Audits: Global Audit, Supply
Chain Auditors and Local Internal Auditors working together
(BCS governance and health and safety)
Forty-one Safety Data process reviews on Operating Company
level (ARISO data).
Global Audit also checked 100 text statements, based
on materiality.
49
Introduction
Appendices
Definitions
50
Introduction
Appendices
Parameters
Performance
indicators
1. Fatal accidents
2. Accidents resulting
in permanent disability
3. A
ccidents resulting
in absence from work
4. Lost days
5. Workforce
1. Accident frequency
Own staff, number of accidents resulting in absence from work per 100 FTE
2. Accident severity
Environmental reporting
covers the value chain, from barley to bar, i.e. from the production
of raw materials up to and including consumption of the product.
The ozone layer depletion covers refrigerant losses (e.g. HCFCs), while
acidification covers NOx, SOx and NH3 emissions. Nutrification covers
the chemical oxygen demand (COD), plus nitrogen and phosphorus
in wastewater after treatment, where discharged into surface water.
Waste management deals with the destination of our co-products,
industrial waste and hazardous waste.
Parameters
2. Electricity consumption
3. Water consumption
Water consumption in m3
6. Wastewater treated
7. Number of complaints
8. N
umber of external
environment-related incidents
51
Introduction
Appendices
Performance
indicators
3. S pecific total
energy consumption
Fossil CO2 emission (direct and indirect) respectively derived from thermal
energy and electricity consumption, plus refrigerant losses expressed in CO2
equivalents per unit produced in kg/hl beer, cider, soft drinks and water
Water consumption per unit produced in hl/hl beer, cider, soft drinks
and water
The amount of non-recycled waste per unit produced in kg/hl beer, cider,
soft drinks and water, consisting of packaging waste, industrial waste and
non-recycled co-products
52
Introduction
Appendices
Heineken N.V. produces beer, cider, soft drink and water. The total beverage production increased from 194.9 Mhl in 2013 to 197.7 Mhl in 2014.
This is an increase of 1%. Heineken N.V. also produces malt. The production of malt decreased by 5%; from 725 kton in 2013 to 686 kton in 2014.
Malting sites
Performance indicator
Unit
2012
2013
2014
2012
2013
2014
2012
2013
2014
2012
2013
2014
Mhl
183.2
194.9
197.7
183.2
194.9
197.7
Beer production
Mhl
165.7
177.5
180.9
165.7
177.5
180.9
Cider production
Mhl
3.4
3.5
3.8
3.4
3.5
3.8
Mhl
10.3
10.7
9.1
10.3
10.7
9.1
Water production
Mhl
3.8
3.2
3.7
3.8
3.2
3.7
ktons
725
725
686
725
725
686
PJ
19.8
19.3
18.5
14.8
14.8
14.0
1.6
1.6
1.5
3.4
2.9
3.1
Electricity consumption
GWh
1,872
1,937
1,929
1,538
1,634
1,595
84
84
79
250
219
255
ktons
1,264
1,216
1,172
961
955
908
87
91
84
215
171
180
ktons
737
666
666
582
538
525
40
33
29
115
95
112
NOx emissions
tons
2,293
2,225
2,634
1,814
1,811
2,143
76
76
105
403
339
386
SOx emissions
tons
3,037
2,968
2,199
2,372
2,369
1,987
260
258
57
405
341
155
NH3 in use
tons
1,280
1,217
1,228
1,225
1,172
1,181
12
44
41
41
NH3 losses
tons
158
135
133
156
123
123
12
tons
38
48
49
31
43
42
Malt production
53
Introduction
Appendices
Malting sites
Performance indicator
Unit
2012
2013
2014
2012
2013
2014
2012
2013
2014
2012
2013
2014
tons
13.0
13.0
9.5
12.0
12.0
9.3
0.9
0.9
0.2
0.0
0.1
0.0
kg R11 equivalents
579
556
348
557
547
346
18
28.1
24.9
20.4
26.5
23.4
20.1
1.3
1.4
0.3
0.3
0.1
0.0
Water consumption
Mm3
81.6
83.4
81.4
77.1
79.3
76.7
2.5
2.4
2.1
2.1
1.7
2.6
Mm3
58.5
55.4
53.0
56.3
53.5
51.0
1.0
1.1
1.3
1.2
0.8
0.8
ktons COD
166
157
157
159
153
152
ktons COD
24.9
23.5
26.3
24.4
23.1
25.9
0.4
0.4
0.4
0.0
0.0
0.0
tons N
781
825
454
762
806
432
17
17
18
tons P
620
673
415
615
669
404
11
ktons d.m.
4.85
4.86
3.62
4.79
4.80
3.57
0.06
0.06
0.05
0.01
0.01
0.00
ktons
3,150
3,238
3,226
3,067
3,140
3,129
36
51
44
47
48
53
ktons
96
109
100
93
105
99
ktons d.m.
15.75
14.81
13.99
14.16
13.87
12.72
0.77
0.83
0.77
0.82
0.11
0.51
ktons d.m.
2.85
2.89
3.03
2.84
2.87
2.81
0.00
0.00
0.00
0.01
0.02
0.22
ktons
2.48
3.32
9.45
1.94
3.12
2.52
0.02
0.02
0.01
0.53
0.18
6.92
ktons
0.59
1.42
1.04
0.41
1.35
0.79
0.00
0.01
0.00
0.18
0.06
0.24
number
29
36
34
29
35
34
number
46
34
31
42
33
31
2014 value for COD, N, P and SS includes estimates for 16 production sites.
54
Introduction
Appendices
Country
Algeria
Tango
Burundi
Brarudi
Bralima
Egypt
Ethiopia
Ethiopia
Harar brewery SC
Ethiopia
Bedele brewery SC
La Runion
Brasseries de Bourbon
Lebanon
Almaza
Nigeria
Consolidated Breweries1
Nigeria
Nigerian Breweries
Rwanda
Bralirwa
Sierra Leone
Tunisia
Bahamas
Commonwealth Brewery
Brazil
Heineken Brasil
Haiti
Martinique
Brasseries Lorraine2
Mexico
Cuauhtmoc Moctezuma
Mexico
Empaque3
Panama
Cervecerias Bar-Panama
St. Lucia
Surinam
Surinaamse Brouwerij
USA
Heineken USA
Export
Cambodia
Cambodia Brewery
China
Heineken-APB (Shanghai)
China
China
Hong Kong
Indonesia
Japan
Heineken Japan
Korea
Heineken Korea
Laos
The Americas
Asia Pacific
On 4 December 2014, Nigerian Breweries and Consolidated Breweries received shareholder approval
to merge their respective businesses, the merger was completed with effect from 1 January 2015.
We divested 80% of our operations in Martinique, completed in September 2014.
3
Divestment announced on 1 September 2014, completion in Q1 2015.
1
55
Introduction
Appendices
Country
Asia Pacific
Mongolia
New Caledonia
New Zealand
DB Breweries Limited
Singapore
Singapore
Singapore
Solomon Islands
Sri Lanka
Taiwan
Heineken Taiwan
Vietnam
Vietnam
Vietnam Brewery
Austria
Austria
Belarus
Heineken Breweries
Bulgaria
Zagorka Brewery
Croatia
Heineken Hrvatska
Czech Republic
Greece
Athenian Brewery
Hungary
Heineken Hungaria
Poland
Grupa ywiec
Romania
Heineken Romania
Russia
Heineken Breweries
Serbia
Slovakia
Heineken Slovensko
Belgium
Alken-Maes
France
Heineken France
Ireland
Heineken Ireland
Italy
Heineken Italia
Netherlands
Portugal
Spain
Heineken Espaa
Switzerland
Heineken Switzerland
UK
Heineken UK
Various
Central and
Eastern Europe
Western Europe
Global
The Vodka plant Zhuunk in Mongolia was unable to provide data and is therefore not included.
56
Introduction
Appendices
Reference information
Heineken N.V.
57