2010 Report Future Sustainability Better a Brewing Heineken N.V. Sustainability Report 2010 – Brewing a Better Future www.enjoyheinekenresponsibly.com Contents Foreword Reference information Overview IFC Foreword 2 About this report 6 Milestones 2010 Brewing a Better 8 What we said and what we’ve done 10 Brewing a Better Future Future, Together A Heineken N.V. publication Photography Heineken N.V. Andreas Pohlmann, Munich Brewing a Better Future P.O. Box 28 Heineken International, Amsterdam 1000 AA Amsterdam IMPROVE The Netherlands Illustration 12 Green Brewer Addison Corporate Marketing Ltd, London 22 Green Commerce During 2010 we accelerated the transformation telephone +31 (0)20 523 92 39 of our business and our platforms for future fax +31 (0)20 626 35 03 Graphic design and electronic publishing EMPOWER growth. Through our acquisition of the beer Addison Corporate Marketing Ltd, London 26 Engaging Employees operations of FEMSA in Mexico and Brazil, E-mail: [email protected] 30 Heineken Cares Internet: www.sustainabilityreport.heineken.com Printing we welcomed new shareholders, new Twitter: @Heineken_CR Boom & van Ketel grafi media, Haarlem, IMPACT colleagues and iconic brands into the Netherlands 36 Responsible Consumption our business. More information from Heineken online: 40 Partnerships for Progress www.heinekeninternational.com/sustainability Binding and distribution www.heineken.com Hexspoor, Boxtel, the Netherlands We also transformed our approach to building www.enjoyheinekenresponsibly.com 44 Enablers a more sustainable business with the launch of 47 Millennium Development Goals Paper our Brewing a Better Future initiative. This ten-year Copies of the Sustainability Report and further Revive 50 White Silk 300 gsm cover Appendices journey will have a significant impact on the way information are obtainable from the Global Revive 50 White Silk 130 gsm inside pages 50 Appendix 1: Reporting basis in which we bring our products to market, improve Corporate Relations department via www.heinekeninternational.com Revive 50 White silk is produced by an ISO 54 Appendix 2: Overview of environmental and measure our environmental performance, 14001 accredited manufacturer and is certified performance contribute to our communities and engage with 56 Appendix 3: Global Reporting Initiative All brand names mentioned in this report, as an FSC® mixed sources product. It is Reference Table our internal and external stakeholders. It is a including – but not limited to – those not produced with 50 percent recycled fibre 65 Appendix 4: List of Operating Companies considerable undertaking that puts renewed focus marked by an ® represent registered from both pre- and post-consumer sources, and Business Units on our need to create value at all levels of society. trade marks and are legally protected. together with 50 per cent virgin elementary chlorine free (ECF) fibre sourced from well- 67 Appendix 5: Independent Assurance We shared our new thinking and commitments Production and editing managed forests. Report from KPMG with our stakeholders last year both in our 2009 IBC Reference information Heineken N.V. Global Corporate Relations Sustainability Report and at our launch symposium This document is printed on Revive 50 in April 2010. Writing and editing White Silk, European Ecolabel certified Heineken N.V. Global Corporate Relations in the Copying and Graphic Paper category Ilja van Roon, Lucid Communication No.FR/11/003 What I said then is worth repeating now: introducing Sustainability online this new initiative will not come without its challenges. The fact is that defining programmes and setting KPIs is not enough. The real key to success will be to translate our philosophy into actions that make us think and behave differently. So we are investing a significant amount of time and resources in integrating Brewing a Better Future into our business processes, governance, and engagement models. To help us, each of our majority-owned businesses and our Head Office • Full HTML of this Sustainability Report has formed dedicated sustainability committees. with added functionality and features Each has developed a three-year sustainability at www.sustainabilityreport.heineken.com plan and each has ensured that sustainability is • An overview of our Brewing a Better being discussed at the Management Team level. Future approach • Downloadable information relating to our six strategic initiatives • The sustainability reports of our markets Sustainability was also a key agenda item at five We cannot undertake our journey alone. We believe of our Executive Committee meetings and our that there is much we can learn and much we can Sustainability Steering Committee comprises five share with others on these issues. It is through Executive Committee members. Alongside this greater co-operation that we will move faster and we took the decision to incentivise our senior go further. But we also need feedback. So please managers against a sustainability target. contact us and continue to let us know how we are We improved our transparency: 21 of our markets doing, and what we can do better. It is only with published their own annual Sustainability Report input on your expectations that we can ensure we and by 2015, all of our majority-owned businesses are on the right track to Brewing a Better Future. will have done so. I thank you, our business partners, NGOs, our consumers, our employees and other stakeholders As I point out each year, transparency also means for taking this journey with us. Most of all, I look being honest when we fall short of our own or forward to what we will accomplish together. others’ expectations. The inclusion of our new Mexican business in 2010 was primarily responsible for an increase in the number of fatalities to 14. We believe that a single fatality is one too many and our sympathies go out to the family, friends and colleagues of those we lost in 2010. We will not accept the loss of life of any individual working on Jean-François van Boxmeer our behalf. We will continue to focus on accident Chairman of the Executive Board/CEO prevention through education and ever more stringent safety policies in the coming years. Amsterdam, 31 March 2011 We were also disappointed that for the first time in four years, Heineken was not ranked as one of the top five beverage companies within the SAM Dow Jones Sustainability Index. It is our intention to return to the ranking and we believe that by delivering our Brewing a Better Future commitments, we will do so. But we were also proud of the recognition we received for our efforts. At the end of the year we were invited by the United Nations to become an inaugural member of Global Compact LEAD, a group of leading, sustainable enterprises that are asked to set new, higher benchmarks for sustainability. In September, our groundbreaking sustainable supply chain initiative in Sierra Leone won a World Business and Development Award from the United Nations Development Programme and our continued membership of FTSE4Good was confirmed. We also made another major step in our support of African development by doubling our investment in the Heineken Africa Foundation to EUR20 million. This means we now have a minimum of EUR1 million per year available for health-related projects across our African markets. Heineken N.V. Sustainability Report 2010 1 Overview About this report “e W will do whatever we can, wherever we can, to increase the value we add.” Sean O’Neill Chief Corporate Relations Officer Our local Sustainability Reports 2 Accountability Assurance The printed and digital versions of this report We believe that the data and statements in this are key elements of our public accountability report should be externally assured. We do not and demonstrate our genuine commitment expect our stakeholders to accept only internal or to transparency. They complement our subjective assurance. So, as in previous years, we Annual Report and our corporate website have asked KPMG to provide us with independent, www.heinekeninternational.com. limited assurance on both the facts and the wording in this report. KPMG summarises its activities and In this year’s report, we have included a Global conclusions in Appendix 5. In addition, we have Reporting Initiative (GRI) Reference Table (see further improved and extended the scrutiny by page 56) and a brief summary of some of the our internal audit teams. This improves the quality ways in which we contribute to the United Nations and robustness of the data. Millennium Development Goals (see pages 47, 48 and 49). Via our membership of the Global Compact Reporting standard and Global Compact LEAD, Heineken supports We would welcome the introduction of a global these important ambitions. reporting standard that ensures the data and reporting of every organisation is independently A new reporting structure assessed. It is the only way that accurate Brewing a Better Future represents a new way comparisons can be made and the most effective of thinking and acting. As we promised last year, practices identified and quantified from which we have changed the style and scope of this year’s others can learn. It is also the best way to report in order to bring it in line with this new, ensure the integrity of information and data integrated approach. for stakeholders. The diagram on page 10 will help you to understand Stakeholder dialogue the structure of both this report and our approach Stakeholders are a vital part of our Brewing a to Sustainability. You will see that Brewing a Better Better Future journey. They help us to stay focused Future is focused on the delivery of three strategic on what matters and warn us if we are moving imperatives – Improve, Empower and Impact. off-track. However, balancing business needs Each of these is divided into two key initiatives, and financial sustainability with the expectations six in total. Additionally, in order to support the and requests of our stakeholders is not easy and delivery of our plans, we have created five key means we can never deliver 100 per cent of enablers.