Sustainability Report 2014 UK

Brewing a Better World

Rod Lees Orcharding Manager Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Welcome to our 2014 Sustainability Report Our Values Our values represent what we stand for as a business and employer. They inspire us and are brought to life by our colleagues at every level and function and of our business. Our long-standing company values are:

Jeremy Beadles Enjoyment Respect Quality Corporate Relations Director We’re committed to delighting We have respect for individuals, Our passion for quality is at the heart consumers, day in, day out, with society and the environment. of everything we do. perfect & experiences. HEINEKEN is the country’s leading cider and beer company and part of HEINEKEN N.V., the world’s most international brewer. Our brands Enjoyment Respect Quality Livingston We’re cFiorstm Pointm itted to delighting We have respect for individuals, Our passion for quaEdinbulity righs at the heart Broadway Park customer contact 342 Colleagues are known and loved across the UK and consumecentrers, day 192in C,olleagues day out, with society and the environment. of everything we dooffice. include Foster’s, Heineken®, , perfLivingstonect cider & beer experiences. Edinburgh Caledonian Brewery Edinburgh 0.2mhl 46 Colleagues Caledonian Brewery Kronenbourg 1664, , John Smith’s Tadcaster Brewery 338 Colleagues 3.5mhl

and alongside heritage brands such Manchester 3.5mhl 265 Colleagues Brewery

Livingston as Deuchars and .” FiLedburyrst Point Edinburgh Broadway Park customerCider Mill contact 97 Colleagues 1mhl 342 Colleagues centre 192 Colleagues office

Hereford Edinburgh Without the support and enthusiasm of the 2,000 Cider Plant 309 Colleagues 4.2mhl 0.2mhl 46 Colleagues Caledonian Brewery Tadcaster passionate colleagues who make, distribute and sell our Brewery 338 Colleagues 3.5mhl London and , our sustainability strategy will fail. They 70 Colleagues ManchesterGTS office bring it to life and make it happen day in day out. That’s why 3.5mhl 265 Colleagues Brewery Field Based 485 Colleagues this year our report is told through the voice of our Ledbury colleagues. It tells the story of their efforts to reduce our Cider Mill 97 Colleagues 1mhl impact on the environment, strengthen our role in 1,100 Star communities, and reduce the harm caused by irresponsible HerefordPubs & Bars consumption of the products we make. Cider Plant 309 Colleagues 4.2mhl

London Key to success is translating strategy into day to day activity. 70 Colleagues GTS office That’s what we’re doing with ‘Brewing a Better World’. Field Based 485 Colleagues Whether it’s how we buy goods and services, source raw materials, advertise products, or improve manufacturing processes, we’re embedding our values in what we do across 1,100 Star the business. The past year has seen great progress made & Bars towards our goals. This report gives you a flavour of what we’ve achieved and how.

I know we can only improve by listening to others, including our critics, and in 2014 we made that our priority. We created more opportunities than ever before for our stakeholders to tell us what they thought. Through formal roundtables, our Tadcaster Manchester first ever stakeholder conference, informal meetings, our annual reputation survey, and through Business in the Community’s Corporate Responsibility Index and Community Mark benchmarking, we listened throughout the year and much of our activity reflects the feedback we received. It is, however, a continuous process and at the end of the report we ask for your thoughts and views. I hope you Ledbury London Star Pubs & Bars will feel motivated to give them.

HEINEKEN UK Sustainability Report 2014 01 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Foreword from our Managing Director

David Forde Managing Director

Right across the company they gave Bulmer Foundation is about helping With 4,000 solar panels installed on 2014 was an important year for time to volunteer and fundraise for local communities to create green its roof, onsite Anaerobic Digestion, sustainability at HEINEKEN with the this important cause. At times it spaces and build healthier and more Biogas capture and generation, their challenged them, and me, to be sustainable ways of living. It takes move to LED lighting and investment evolution of our sustainability strategy confronted with the impact that our time for trees to grow and bear fruit, in energy saving voltage into ‘Brewing a Better World’. This products can have when misused. but already we’re seeing the positive transformers, Tadcaster is making But together we took an important impact that local people coming real strides forward. approach takes account of both step to become a better and more together to make a difference to immediate impacts, as well as those in caring company. As a result of their their community can have. In 2015 our theme will be fundraising we were able to support ‘Collaborating for Good’ as we the future, and has been adopted Addaction’s Right Turn service, which While our work with Addaction was continue to work in partnership with across all HEINEKEN businesses.” provides the dedicated and specialist focused on helping those suffering our stakeholders and our colleagues support that veterans struggling with from alcohol misuse, we also to achieve our important Brewing a addiction deserve. continued our work to promote Better World milestones. responsible consumption. Our aim is HEINEKEN was 150 years old in 2014. If we’re to be successful 2015 will see the ten year to make moderation ‘cool’. We for the next 150 years we must become a more sustainable anniversary of our partnership with activated the ‘Dance More Drink company. If we don’t, we won’t succeed commercially – that’s Addaction. Partnerships are hugely Slow ,’campaign in the UK with the why ‘Brewing a Better World’ is one of six strategic pillars of our important to me. I believe we can ‘Sunrise’ advert hitting TV screens. business strategy. In 2014 business conditions were tough and only address the complex We also continued our work to drive we operated in a challenging economic environment. However, sustainability challenges we face the moderation category and offer with a clear strategy and a strong team, we delivered a solid through collaboration and so this consumers better no and low alcohol performance, despite this challenging background. year we increased our investment in choices. Whilst we made good partnerships. We launched ‘Helping progress across our strategy, I’m Our values of enjoyment of life, respect for people and planet Britain Blossom’ with the aim of mindful that in areas such as water and passion for quality are what we build our business on. In creating and restoring 100 efficiency we need to stay focused to my foreword last year I spoke about doing more to engage our community orchards across the UK maintain and drive further colleagues on our sustainability journey. This year our by 2017. We know a lot about the reductions. However we only need to colleagues have stepped up and brought our values to life. benefits of orchards - after all 30% of take the example of our Tadcaster the apples grown in the UK go in to Brewery to see how major One project embodies this more than any other. I’m hugely our ciders. This partnership with the investments and micro activities are proud of the hundreds of colleagues who answered our call to Urban Orchard Project and the making a difference today. ‘Act for Addaction’ in 2014.

02 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 03 matrix.pdf 1 28/04/2015 14:07

Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Brewing a Better World ’Brewing a Better World’ Our strategy continues to be supported by our business values and Brewing a Better World is our long-term approach for creating behaviours. These include a commitment to fairness, shared, sustainable value for our business and our stakeholders. Protecting integrity and respect for the Reducing CO water 2 emissions law and are contained in the resources HEINEKEN Code of Business Conduct. ‘Brewing a Better In 2010 we launched our global sustainability In 2014 HEINEKEN UK as part of HEINEKEN N.V. took Advocating Sourcing World’ is one of the strategy, ‘Brewing a Better Future’, and in the UK we a seemingly small but important step by evolving this Our focus responsible sustainably company’s six strategic immediately went to work delivering against its strategy into the new ‘Brewing a Better World’ consumption pillars and forms a key area targets. We’ve made good progress. In our 2013 strategy. We feel this better reflects the impact of within company strategy. Sustainability Report reported reductions in water our work today, not only in the future. As part of this Promoting Growing with health and CO2 as well as new sustainable agriculture and important evolution we also added two new areas of communities responsible drinking commitments and activity. focus: ‘Promoting health and safety’ and ‘Growing and safety with communities’. Our strategy now has six key areas of activity. • Passion for quality C Our values • Brands that people love • Enjoyment of life M • Respect for people and planet

Our sustainability approach spans from raw materials through to end consumers, which we call ‘barley to bar’.Y This focus ensures Fromthat barley we take to bar account of both our direct and indirect impacts. CM From barley to bar Agriculture Malting Brewing Packaging Distribution Customer Consumer MY Agriculture Malting Brewing Packaging Distribution Customer Consumer CY We also updated our Focus areas CMY high Responsible materiality matrix to better Focus areas K Consumption reflect the increased Water Water Water Sustainable dialogue and feedback from Sourcing our stakeholders, reputation research, benchmark results CO2 and internal risk analysis. CO2 Energy & ol der s

h Carbon

e Human Rights Sourcing Labour Conditions Packaging Sourcing Biodiversity Community Waste Investment ance to stak

t Health & Responsible consumption r Economic o Diversity Safety

p Impact Responsible consumption Business m I Conduct Gene Technology Promoting health and safety Promoting health and safety Remuneration

Growing with communities

Growing with communities low high Current or potential impact on HEINEKEN Ways of working

Ways of working Focus Area Values and behaviours Global Policy/Standard Values and behaviours Locally Managed

04 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 05 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Brewing a Better World: 2020 Commitments 2014 Community Highlights

Each focus area is underpinned by clear commitments that state our ambitions for 2020, with three-year milestones to be achieved by the end of 2015.

Our new partnership with Helping Britain Protecting water resources Blossom is bringing the benefits of green • Reduce specific water consumption in the breweries by 30%1 to 3.5 hl/hl. space to communities around the UK. • Aim for significant water compensation/balancing by our production units in water-scarce and distressed areas.

Reducing CO2 emissions • In production by 40%1. • Of our fridges by 50%2. • Of distribution by 20%3 in Europe and the Americas.

Sourcing sustainab ly • Aim for at least 50% of our main raw materials from sustainable sources. • Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent. • Ongoing compliance with our Supplier Code procedure.

Advocating responsible consumption • Make responsible consumption aspirational through Heineken®.

• Every market in scope has and reports publicly on a measurable partnership aimed at addressing alcohol abuse. • Deliver global industry commitments.

Promoting health and safety (2015 targets) • In production: reduce accident frequency by 10%. • Outside production: 90% of markets at 75% of sites reporting at least one near miss per quarter. • Sales: 2,000 sales manages trained in road safety. • Company-wide: e-learning completed by 90% of markets with 90% employees trained.

Growing with communities • Prioritise projects that support ‘inclusive growth’ and/or links with the focus areas Act for Addaction showed us the power of of Brewing a Better World. our colleagues as ambassadors for change. • Focus on long-term community investments in multi-stakeholder partnerships.

1. Baseline 2008 2. Baseline 2010 3. Baseline 2011

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Local progress Focus area Our global commitment for 2015 What we’ve done globally in 2014 What we’ve done in the UK in 2014 Delivering against our goals indicator Aim for sustainable sourcing On track. In 2014 we trialed a of raw materials for crop In 2014 we sourced sustainably: sustainability questionnaire 2014 was a challenging year and production volumes reduced. year 2015: 20% (barley), with our bittersweet apple 40% (hops), 60% barley: 15% growers and this will be rolled This had a material impact on our ‘Brewing a Better World’ (bittersweet apples for hops: 62% out in 2015. cider1). bittersweet apples for cider: target delivery but we still made solid progress and are on 28% 50%2 of agricultural raw On track. N/A track to deliver against our goals by the end of 2015. materials used in Africa to We increased our local sourcing 3 be locally sourced within from approximately 46% in Local progress the continent. Focus area Our global commitment for 2015 What we’ve done globally in 2014 What we’ve done in the UK in 2014 2013 to more than 48% in 2014. indicator Reduce our specific water Achieved. Water consumption Four-step Supplier Code On track. 100% of HEINEKEN UK Procedure operational suppliers have signed up to consumption in the We achieved our 2015 target a remained flat versus 2013 at Four-step Supplier Code breweries to 3.9 hl/hl1. 3.6 hl/hl. within all Operating Procedure operational in 25 the Four-step Supplier Code year early and decreased water Companies. Procedure. consumption to 3.9 hl/hl. Operating Companies. Rollout planned for all remaining 100% of our production On track. N/A Operating Companies in 2015. 2 units in water-scarce and Sixteen (70%) of our production water-distressed areas will We commit to invest a Achieved. We invested 9.49% of our units have drafted a Source ® have a Source Water minimum of 10% of our ‘Dance More, Drink Slow’ Heineken media spend Water Protection Plan. 4 ® Protection Plan. media spend for Heineken campaign activated in 44 activating the ‘Dance More, By the end of 2015, each of the in supporting our dedicated markets. Investment Drink Slow’ campaign. 23 ‘Priority One’ sites should responsible consumption supporting our dedicated have a protection plan in place. campaign in at least 50% of responsible consumption 5 our market volume . campaign exceeded 10% of Reduce CO2 emissions in Achieved. Reduced CO2 emissions in 3 total media spend in our main production by 27% We passed our 2015 target a production by 1% versus (resulting in 7.6kg CO –eq/ 2013 (7.1 CO –eq/hl). markets, representing more 2 year early and achieved a 30% 2 ® hl). than 50% of the Heineken reduction compared with 2008, global volume. resulting in 7.2 kg CO2 –eq/hl. Every market in scope has a On track. Our partnership with alcohol Reduce the CO emissions More to do. Reduced CO emissions in 2 2 partnership to address 50 markets are now in scope, an misuse charity Addaction 4 from distribution by 10% in Our overall emissions increased distribution by 4.5% vs 2013 alcohol-related harm. All increase from 40 in 2013. Of has been in place since 2005. Europe and the Americas. (2.81 CO –eq/hl) by 3.6%. This was caused by 2 partnerships meet these 48 have at least one significant changes to HEINEKEN’s seven-point partnership. distribution activities in two partnership criteria. major markets – Brazil and Precise goals for 2015 to be On track. N/A Mexico. Excluding these two, decided in conjunction with our emissions in distribution An implementation plan was the industry via the actually fell by 5.9%. developed for the global International Alliance for commitments in 2013. In 2014, the Responsible Drinking Reduce the CO2 emissions of Acheived. 99% of the 2,481 fridges we signatory companies produced a our fridges by 42%5. bought in 2014 were ‘green’. (formerly known as ICAP Commitments Progress Report We passed our 2015 target a and GAPG). year early. 99.8% of the 152,000 outlining our actions to date in fridges that HEINEKEN implementing these. purchased in 2014 were ‘green’. The average reduction of CO 1 Based on volume. 2 Based upon tonnage. 3 With local sourcing we refer to sourcing within 2 the region of Africa & Middle East. 4 Investments dedicated to responsible consumption Achieved On track More to do Not on track emissions improved from 40% messaging with regards to Heineken® brand communication. This includes the ‘Dance to 45% in 2014, compared with More Drink Slow’ and ‘Sunrise’ campaign, UEFA® Champions League-specific responsible consumption boarding and other specific activations at festivals and events.5 Market the baseline year 2010. 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 1 Baseline 2008. 2 Twenty-three production units. 3 Baseline 2008. 4 Baseline 2010/2011 5 Baseline 2010. religious) restrictions on alcohol advertising.

08 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 09 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

2014 Highlights HEINEKEN UK is part of HEINEKEN N.V. the world’s most international brewer with operations in over 70 countries. 2014 was an important year in the evolution of our Gerald Adriaan Heineken established the company in 1864, sustainability strategy. The change to ‘Brewing a Better now 150 years ago. Whilst sustainability may use different World’ better reflects our impact today. Our new focus areas language today Gerald Heineken wanted to create a company of ‘Promoting health and safety’ and ‘Growing with that was sustainable and which did the right things right.” communities’ are already making a positive impact.

Protecting water resources Reducing CO2 emissions Advocating responsible Global activity in 2014 The opening of our new National • Reduce specific water consumption in the breweries by 25%1 to 3.7 hl/hl. consumption supporting African Distribution Centre in Derby will • Aim for significant water compensation/balancing by our production units We’re continually looking for ways farmers save us 300 tonnes of CO per in water-scarce and distressed areas. 2 to innovate when talking to our year. It also means we can drive consumers about responsible We are proud of the efforts our more and more sustainable drinking. The latest phase of colleagues in other countries are Reducing CO2 emissions logistics solutions over the ‘Dance More Drink Slow’ making to bring ‘Brewing a Better • In production by 40%1. coming years. encouraged people to stay in World’ to life for their communities • Of our fridges by 50%2. control for a more enjoyable night. – in particular our colleagues in Africa. • Of distribution by 20%3 in Europe and the Americas. The continued rollout of our patented SmartDispense draught Growing with We have a goal to source 60% of One of the initiatives is called CREATE, and barley in Ethiopia. We also system is helping pubs save a communities agricultural raw materials in Africa or Community Revenue established a Public-Private Sourcing sustainably million litres of water per year We collaborated with the Urban locally within the continent. Enhancement through Agricultural Partnership within the Dutch • Aim for at least 50% of our main raw materials from sustainable sources . compared to previous equipment. Orchard Project and the Bulmer In 2014 we sourced more than 48% Technology Extension. This Government-funded 2SCALE • Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent. Foundation to establish ‘Helping of our African agricultural raw Public-Private Partnership with the programme to grow cassava within • Ongoing compliance with our Supplier Code procedure. Our brewery in Tadcaster is now Britain Blossom’. The launch of materials locally. We currently source Dutch Government and EUCORD was smallholder farmers in Oyo State. the UK’s largest solar powered this major project will create or agricultural raw materials locally in 11 launched in 2013 and operates in brewery with over 4,000 restore orchards for 100 countries across Africa and the Middle three markets: Ethiopia, Rwanda and For further details on all Brewing a Advocating responsible consumption photovoltaic panels in operation. communities across the UK by East. With some countries sourcing Sierra Leone. Better World activity from HEINEKEN • Make responsible consumption aspirational through Heineken®. 2017. several crops locally, there are a total N.V. please go to http://www. • Every market in scope has and reports publicly on a measurable partnership aimed of 16 initiatives running across the In 2014 we also achieved growth theheinekencompany.com/ at addressing alcohol abuse. Sourcing sustainably Awards & region. Our projects involve around from a number of our local sourcing sustainability. • Deliver global industry commitments. Farmers are at the start of our commendations 120,000 farmers’ households, initiatives, including sorghum supply chain and have a crucial 3.5* (95%) CR Index benefitting 840,000 family members. production in Nigeria and Burundi, Promoting health and safety (2015 targets) role to play in reducing our Awarded both the Community impacts. To help them achieve • In production: reduce accident frequency by 10%. Mark and Platinum Big Tick status that we made two significant by Business in the Community. • Outside production: 90% of markets at 75% of sites reporting at least one near miss per quarter. We now have Planting of sorghum was steps forward in 2014. In We’re the only alcohol company • Sales: 2,000 sales manages trained in road safety. more than completed in Sierra Leone with partnership with one of our to receive both awards. Star Pubs • Company-wide: e-learning completed by 90% of markets with 90% employees trained. 6,000 farmers harvesting expected in early malted barley suppliers, & Bars also had their Big Tick in our 2015, but the spread of Ebola Munton’s, we set up a pilot status reaccredited. Growing with communities ‘Farmer Sustainability Group’ to barley-growing has restricted the access of • Prioritise projects that support ‘inclusive growth’ and/or links with the focus areas share best practice and in project in Our maize project in Rwanda, agronomists to the farms to of Brewing a Better World. Hereford we are now rolling out a Ethiopia up which aims to increase the support farmers. The project from 1,700 in • Focus on long-term community investments in multi-stakeholder partnerships. sustainable cider apple toolkit. income of 5,000 farmer families, will be re-launched once the 2013. began planting in 2014. disease is under control.

10 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 11 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

of stakeholder conference attendees Our Stakeholders found the event valuable to them and 96% their organisation.

David Paterson Head of Public Affairs & Corporate Responsibility Our 2014 stakeholder engagement activity was a learning for us. We deliberately sought to consult with as Listening to our stakeholders and acting wide a group of stakeholders as possible, which gave us a rich Customers and consumers on their feedback has always been amount of feedback across all important to HEINEKEN. Across the aspects of our business. While we weren’t able to respond to all of the Suppliers Employees world we use our ‘Reputation Research’ feedback raised it confirmed that we process to do that. Our 2013 results told are moving in the right direction with our new partnership, Helping Britain us we needed to do more in the UK. So Blossom, and strengthening our Stakeholder in 2014 we launched our ‘Open activity with Addaction. The engagement comments raised helped us to NGOs & international Employee Conversations’ approach. Rather than benchmark planned activity and organisations representatives wait for the annual survey results, we provided a focus for our planning. opened the door to more regular in In 2015 our theme will be depth engagement.” ‘Collaborating for Good’ where we will build on our conference by Governments involving stakeholders more directly Investors in setting our future plans. Industry “A key part of my role is to ensure that HEINEKEN is transparent associations

and open to comments and opinions from outside our business. The launch of our ‘Open Conversations’ approach was a reflection of this and recognised that we weren’t previously Highlights of our feedback Sharing our experiences engaging widely enough. Some key feedback we received: In 2014 as part of our active listening activity we Activity in 2014 was practical and aimed at better engaged with and presented at a number of key understanding how we’re viewed today, positively and • Increase funding for sustainability programmes. roundtables, conferences and events. negatively, and to use this as our baseline for future activity. • Use HEINEKEN’s position as an industry leader to We cast our net wide and in May held a roundtable focused on accelerate activity. These included: environmental sustainability with Government officials and • Make drinking in moderation more aspirational. • Reducing the Strength Conference, March. non-governmental organisations. We built on this in July • Water needs to be made a higher priority for • Sustainability Roundtable, May. through a second, larger, roundtable on responsible alcohol activity. • Local Government Association Conference, consumption. Views, opinions and actions gained from these • Keep running stakeholder feedback groups and July. preliminary events helped us to shape the agenda for our first respond with concrete next steps. • Moderation Roundtable, July. stakeholder conference, held in September with over 60 • Leverage our scale to support our • Brewing a Better World attendees. You can see highlights of the feedback we received Supply Chain partners including Conference, September. below.” customers, suppliers and primary • Profiting from Sustainability producers. Conference, December.

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Our priorities Protecting water resources • Increase water usage efficiency. • All wastewater to be treated and cleaned. • Reduce actual water usage year on year.

Shane Gardner UK Safety & Environment Manager Actions and results: Specific water consumption hl/hl beer+cider Flat water usage versus For a business like ours, water is central our goal to our needs - beer, after all, is 95% In 2014 we maintained our 2013 water consumption usage. This 3.6hl/hl water. It’s a resource we use throughout remained at 3.6 hl/hl but specific our supply chain and, as an industry water usage rose by 2%. Maintaining X2 2014 3.6 this reduction versus our goal is a Efficiency of the water filters in the 2013 3.6 borehole water cleaning system 2012 3.8 leader, we recognise our responsibility to significant achievement as our doubled at our Tadcaster overall production volumes declined brewery through an on-site 2011 3.8 promote its use in a sustainable way.” engineering review by 9%. This made targets harder to 2010 3.9 achieve as they are calculated versus hectolitre of production and hygiene “We’ve achieved a lot of success in reducing the amount of water and quality requirements mean that used in production. As I step into my new role of UK Safety & vessels must still be cleaned even if Environment Manager, I’m relishing the opportunity to enhance we aren’t brewing. Identifying reduction Our ciderie in Hereford uses water the water efficiency projects being undertaken across all our UK opportunities extracted from on-site and off-site production sites – where the successes enjoyed at Manchester When comparing figures with 2013 it At our Caledonian Brewery in boreholes, which in its original form is are especially significant. should be taken into account that for Edinburgh, the oldest in Scotland, a brackish, leading to losses of 25% of 2014 all usage at our Ledbury site was review of the ‘bright beer’ cleaning all water extracted. In 2014 we While Manchester is undergoing a multi-million pound re-classified into ‘other’ rather than schedule halved the water usage and installed an additional reverse modernisation programme, this historic brewery still has a ‘beverage production’, as milling had a knock-on effect of reducing osmosis cleaning plant as part of the number of Victorian buildings in use. Still, it’s one of the most operations could not be separated energy usage by a third. A simple new boiler house installation that water efficient HEINEKEN sites in the world, with a condensate from beverage production for this review identified that an entire has allowed the reuse of half of the recovery system that, like Hereford, runs at over 85% efficiency. facility. This would have helped these cleaning cycle could be removed with water otherwise lost. numbers. Our 2014 specific water no loss of hygene. Benefiting from a soft, low calcium water supply, which runs off usage remains lower than the average the nearby moors, allowed colleagues at Manchester to improve for HEINEKEN N.V. of 3.9 hl/hl. their water recovery system and cooling towers in 2014. The changes now allow this low calcium water to be re-used for up to a week in pasteurisers and compressors to cool machinery.

This type of practical, technology led, activity is at the heart of our approach to water efficiency and a great example of the sort of innovation for which our business is renowned.”

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Our priorities • Lower emissions from production through increased efficiency and use of renewable energy. Reducing CO emissions • Through technology, collaboration and network design reduce the impact of 2 our logistics.

• Reduce CO2 emissions from our fridges through investment in ‘green’ variants.

Marc Burrows Head of UK Logistics

Specific greenhouse gas emissions Actions and results: Types of fuel used kg CO2 –eq/hl beer + cider By investing in our new National Continued reduction in Distribution Centre (NDC) in Derby we’re greenhouse gas emissions 2014 7.1 from production 2013 7.2 able to save 300 tonnes of CO2 a year, take We maintained our trend of reducing 2012 9.7 2011 9.8 2014 7.1 850 vehicle journeys off the road, and our specific CO2 emissions year on 2010 10.8 year with a further slight reduction to 2013 7.2 deliver a better service to our important 2012 9.7 7.1 kg CO2 – eq/hl versus 7.2 kg CO2 2014 7.0 grocery and retail customers.” – eq/hl in 2013. Declining production Specific20141 electricity 7.1consumption9.8 2013 7.8 volumes in 2014 had a knock-on KWh/hl20130 beer + cider 7.2 10.8 effect of increasing the challenge to 22001122 8.1 9.7 2011 8.4 Gaseous fuels 64.0% “Prior to the NDC’s opening we distributed our stock from five hit our ‘Brewing a Better World’ goals. 20114 7.0 9.8 2010 8.9 different points across the UK. The problem was that these Nonetheless our specific energy 20103 7.8 10.8 Coal 0.3% locations weren’t close to where our customers wanted us to deliver. consumption reduced by 5% versus 2012 8.1 Liquid fuels 33.7% Multiple depots meant multiple deliveries to ensure that the right 2013 from 98 MJ/hl to 92.8 MJ/hl. 22001414 67.77.0 8.4 Biomass and Biogas 2.0% products were available in the right place at the right time – often at 220013103 69.87.8 8.9 short notice during peak sales periods. It wasn’t an efficient way to In absolute terms our energy 22001212 76.88.1 move stock around the country and therefore our CO impacts were consumption fell by 11% and our 2200111 76.68.4 2 Specific2014 thermal 67.7energy consumption higher than they needed to be. thermal energy consumption fell by 22001010 83.88.9 MJ/hl2013 beer + cider 69.8 3%. The drop in thermal 2012 76.8 Derby is ideally located between where we brew our beer and cider consumption is largely driven by our 20141 67.7 76.6 and where our customers want us to deliver it. During its 2014 new boiler at our ciderie in Hereford, 20130 69.8 83.8 operations, the NDC delivered nearly 50 million cases to customers, which operated for its first full year in 2012 76.8

while also removing 850 vehicle trips off the road – 2014. 2011 76.6

a saving of 125 tonnes of CO2. The annualised figure will be even 2010 83.8 greater at 300 tonnes. That means we can achieve efficiencies, minimise our carbon footprint and deliver better services to our customers – something that was reflected in the Grocery Advantage Survey where we secured the number 1 ranking in 2014.

CO2 reduction is also at the heart of an initiative to promote deliveries directly from our production sites to our customers where possible. This ‘one touch’ delivery system uses minimal storage space on our sites to hold key product lines which we can deliver direct – and thanks to good collaboration with our customers, we’re seeing some of them redirect their own transport fleets to collect on site, thus minimising empty running of vehicles.

During 2014 we made over 5,900 direct customer deliveries, totaling

some 1.4m hl and saving 700 tons of CO2.”

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Solid progress against our Increasing our usage of energy generation. The solar panels Waste liquid from the brewery distribution goal We save renewable energy alone will produce enough energy process is captured and treated in an We reduced our distribution Tadcaster brewery took two major over a year to power the equivalent on-site anaerobic digester that emissions by 4.5% versus the 1 MILLION steps in September towards reducing of that used by 185 homes and produces biogas and a useful previous year. In May we opened our litres of water reliance on grid energy through the completely power our bottling hall agricultural nutrient from this waste. new National Distribution Centre in installation of over 4,000 solar for up to three hours a day as well as The gas is burnt to produce electricity Derby as part of planned network every year. panels onto its roof and improving feeding the rest of the plant. It also that helps to power up to 5% of its realignment changes to increase our We’re off setting carbon efficiency of biogas capture and makes Tadcaster the UK’s largest annual energy needs. efficiency. emissions by buying solar brewery. green energy from Eneco In the UK we also take responsibility UK which is generated for the emissions associated with Our SmartDispense from Tullo Wind Farm, brewing and exporting Newcastle efficient draft dispenser based in Aberdeenshire. Brown Ale from our Tadcaster rollout hit 600 units We’re currently the only brewery into the US. These exported installed in 2014, reducing recipient of Tullo Wind volumes reduced in 2014 and so line clean wastage by 75% Farm’s green energy emissions associated with this export and saving a million litres certificates - equating to also dropped. of water every year. We around 25% of our aim to install a further 300 energy consumption. units in 2015.

Sharing loads with Tesco reduces lorries on the road by 99% of fridges purchased in 2014 were ‘green’ variants with on-board energy 4% management, LED lighting every year and energy-efficient fans.

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Reducing CO2 emissions

Robert Henshaw Engineering Manager

At Tadcaster Brewery we’re focused on reducing our energy usage by installing new equipment and retro-fitting existing systems to improve energy efficiency. Often big investments like our solar panels capture people’s attention. That’s great as it gets people thinking about where our energy comes from. However, we’re also focused on the smaller, individual steps we can take to reduce energy demand.”

“To identify the potential savings, we keep a close eye on the individual performance of our main equipment each week. As part of that process we realised that we had a chance to reduce energy use by looking again at the voltage we operate at on the site.

We’re located very close to the local National Grid feeder station, which operates quite an old circuit and has to use a high voltage to ensure they can get the power they need to the other side of the town. Given our proximity to the station, we’re therefore seeing our equipment driven very hard, with all of our equipment working at over 250V – which is at the extreme end of the scale.

To address this we embarked on a process of replacing our 14 main We employ TPM (Total Productive We’re enjoying further savings by Meanwhile we’re continuing to look transformers with much more efficient Super Lo-Loss technology Management) teams for process switching to LED lighting across the at how we can source more of our ones. That allowed us to eliminate around 4kw of losses per improvements and capital fund site. From a WC to a packing hall, energy from renewable sources. transformer and reduce voltages down to 230V across the whole applications for major equipment every time a light unit gives out it’s We’ve started putting together a site. Dropping 20V of voltage pressure off the system circuit means modifications/replacements for replaced with an LED, which run on plan for a 500kw on-site wind that our equipment is no longer being pushed to excess or reductions such as transformer about a quarter of the power of the turbine to add to our existing solar generating excessive heat. As a result we save large amounts of replacements, cooling plant and old lamps. panel array and biogas electrical electrical energy by our equipment operating more efficiently. The steam boiler improvements. generator.” capital investment was repaid in a matter of months by the savings

made.

20 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 21 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Our priorities Sourcing sustainably • Increase sustainable sourcing of barley and bittersweet apples for cider. • Ensure compliance with Supplier Code Procedure. • Support our UK farmers to farm in an increasingly more sustainable manner.

Chris Muntz Growers Development Manager

Having exceeded our 2014 target of Actions and results: Working with Hereford Without apples we don’t have a cider 22% by delivering 28% of the total cider apple growers business, it’s as simple as that. To ensure tonnage of apples to the Ledbury On track and significant We use 30% of all apples grown in mill from verified sustainable progress made the UK to make our ciders. Cider we have the supplies that we need we orchards, I’m now working with a Our sustainable sourcing goals for apple trees are a significant need to take a long term view and larger group of growers using this barley and cider apples are investment as they are in place for Code of Practice to enable us to demanding and in order to make many years and take valuable ultimately that means ensuring that our meet our target of 60% in 2015. progress it’s essential we collaborate farming land and so our relationships apples are sourced sustainably. One of with our farmers, whether our own or with growers often stretch back The long term goal of course is that contract apple growers or through generations. Cider apples are usually my key responsibilities is to ensure our we’ll source all our cider fruit partners such as Munton’s for malted grown alongside other, more short apple farmers receive every assistance in sustainably and I look forward to barley. This approach is paying off. term, crops and often not the first broadening my role as a key point of In 2014 we made significant choice for innovation. We took this meeting our targets for sustainable contact with our growers as we work progress and are on track to deliver challenge on by developing and sourcing - a key pillar of our Brewing a towards achieving our targets.” against our sustainable sourcing co-creating with our growers our SAI goals next year. compliant Code of Practice. It was Better World strategy.” successfully piloted in 2013 and rolled out to more of our growers this year. It will now be extended to the “UK cider apples are the main raw ingredient which go into our remainder of our cider apple growers in 2015. Early results are positive. ciders. We source these from around 180 farmers, mainly in Duncan Matthews , with orchards under long-term contract. We’re also Hererfordshire apple grower farmers ourselves, owning and managing our own farms with around 2,000 acres of apple orchard. That means that we know for ourselves the challenges our farmers face and we can use our own experience to help them improve their businesses.

Our cider apple growers are deemed to be operating sustainably when they have successfully completed the HEINEKEN Cider Apple Growers Self-Assessment. The assessment scores a wide range of measures from managing and harvesting the fruit following the latest appropriate crop management methods to the appropriate storage and disposal of apple waste. We developed this HEINEKEN Code of Practice for Sustainable Cider Apple Production last year, compiling it with the help of a number of ‘pilot’ growers and ADAS, an external company which verified that our scheme complied with the Sustainable Agriculture Initiative (SAI) Platform. It was well received by our farmers and we refined it based on this pilot.

22 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 23 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

All our Joanne Perrott barley is Global Lead Buyer, Raw Materials British grown and Red Tractor HEINEKEN’s relationship with our compliant malted barley suppliers Muntons is one which goes from strength to strength as we work to promote Collaborating with pilot a Farmer Sustainability Group. yields while lowering Muntons Based on the concept behind the environmental impacts. This is sustainability in our Supply Chain.” Our malted barley supplier, Muntons, Skylark Foundation in the crucial activity with one farmer is a strategic partner on our (supported by telling us that in three generations sustainable sourcing journey. All of HEINEKEN) the ‘Profiting from his farm flooding has gone from the barley we use in our UK brewed Sustainability’ programme aims to one major event for his “Muntons share our passion in driving sustainable sourcing beers is grown in the UK and bring farmers together to share best grandfather, two for his father, to and their commitment to making a real environmental Munton’s converts much of this into practice. It takes an area based ten major flooding events already difference in the malting supply chain is evidenced through malted barley for our breweries. In approach looking at the entire crop for him, so far. Take up has been a dedicated Sustainability Director resource. This hands-on 2014 we worked with Muntons, York rotation with the aim of developing strong and we expect the scheme assistance in shaping our ambitions and forging strong and East Riding Local Enterprise individual farm plans to increase to grow further in 2015. links with our farmers when it comes to sharing best Partnership, the National Farmers agricultural practice has been of immeasurable benefit. Union and other major brands to Muntons only use growers signed up to the Red Tractor food assurance scheme for supplying HEINEKEN and are leading lights on the Sustainable Agriculture Initiative (SAI) Platform. High supplier standards During 2012 and 2013 we sponsored The HEINEKEN global Supplier Of particular benefit has been their commitment to Code sets high standards Lancaster University PhD student Alistair Campbell to conduct a study on pollinating measuring the impact of chemical fertilisers and showing throughout our supply chain us the benefits to be derived from natural compost. around health and safety, insects in our orchards. The results minimum wages, working hours highlighted the significance of pollinators - increasing yields by up to 70% compared to Using locally-produced organic compost instead of and child labour. In 2014 100% fertilisers on a test field in 2013, Muntons raised barley of our suppliers signed up to this when they are excluded completely - and challenged our current thinking by drawing yields by 12% - and while further tests await ahead of a Code. This is backed up by a potential rollout, we can now provide clear evidence to our robust audit procedure for attention to the importance of solitary mining bees as the most effective farmers that growing barley sustainably can actually high-risk suppliers, including site increase yield without raising costs. visits where appropriate. pollinators. We’ve recently signed a new long-term contract with Muntons and I look forward to drawing on their expertise further as we build on the progress we have made 100% together.” of our suppliers have signed up to our Supplier Code.

24 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 25 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Our priorities Advocating responsible consumption • Make responsible drinking aspirational. • Create and develop effective partnership to tackle the issue of alcohol misuse. • Take action at industry level around underage drinking, marketing, consumer information, product innovation and retailer support.

Lucy Henderson Heineken® Marketing Manager

Actions and results: this by reducing the alcohol content of marketing policy is included in our a number of brands and bringing a contracts with external agencies and We launched ‘Dance More, Drink Slow’ in Colleague advocacy range of new moderate innovations we work closely with the Portman January 2014 as the latest phase of a We’ve had a longstanding and to the market which are lower in ABV Group to ensure our marketing teams and our agencies fully understand the ® successful partnership with Addaction than the category average. campaign through Heineken designed to since 2005 and this year we letter and the spirit of the marketing encourage responsible consumption and supported two new services and took Responsible Retailing and and sponsorship codes. our partnership to a new level by Marketing create a new way of thinking among helping our colleagues to get more Our ‘Dance More, Drink Slow’ consumers - that moderate drinking can hands-on and involved. campaign, aimed at UK adults, had significant media spend and was be aspirational and that staying in control Responsibility Deal focused on making responsible helps you get the best out of your night.” commitment drinking aspirational. Since launching As part of our Responsibility Deal our Responsible Marketing Policy in commitments, we have removed 2013 we’ve been working to ensure it more than 180 million units of alcohol is fully embedded across our business. Using the power of a global brand like Heineken® to encourage from the UK market. We achieved Compliance with our responsible moderate drinking also reinforced its position as a premium beer which promotes quality over quantity. As part of that global campaign we launched the ‘Sunrise’ TV advert in which a clubber Growing the moderation have been considered inferior in distributed over 1.5 million free ® waives the offer of another bottle of Heineken in favour of water category taste to those with a more traditional samples over the course of the year. as he focuses his energies on the dance floor. With the sun rising Consumers are looking for alcohol content. In 2014 we tackled These products allow consumers a over London, our ad culminates with him emerging into the city moderation when they shop. this by working with our retail and credible option for a lower alcohol streets with real life DJ Audrey Napoleon and accompanied by Whether it’s for healthier options in off-trade customers to make low and content adult beverage and Foster’s the message ‘Enjoy the Sunrise. Dance More. Drink Slow’. food or portion control on ready zero alcohol drinks, such as Foster’s Radler delivered strong performance meals – and the alcohol category is Radler and Bulmers 2.8% more with 22% sales growth in 2014. In just four weeks, we saw almost three million adults actively no different. However, in the past accessible. Key activity focused on engaged on this campaign and the video was shared more than the low and zero alcohol products awareness and sampling and we 21,000 times with over 30 million media impressions. Research also showed that Heineken® owned 74% of the social media buzz on moderate drinking and that conversations about responsible drinking increased by 20%. Enjoying Heineken® responsibly is core to the brand and is one premise we instil into all our campaigns to ensure people always have the best experiences.”

26 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 27 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

4th September was our HEINEKEN global ‘Enjoy Responsibly Day’ and all UK colleagues engaged in activity to give them the tools to become ambassadors for responsible drinking and to champion moderation.

Alcohol education packaging to our festival activation. Induction for new colleagues has a Claire Matthews Corporate Responsibility Manager Effective alcohol education is In 2014 the Drinkaware website dedicated session to raising units important to ensure that young attracted an average of 23,000 awareness using a range of people understand responsible unique visitors per day, a total of 8.3 Drinkaware resources including the consumption from an early age. million unique visitors over the unit measure cups and calculators. Alcohol misuse is the biggest sustainability course of the year. There were 43% challenge we face. We’re working really We continue to provide core funding more visitors to the Drinkaware We’re also one of five funders of the to Drinkaware and use our marketing, website in 2014 than in the prior Lifeskills Education and Alcohol hard, through a number of approaches packaging and sponsorship to drive year, and almost four times as many Foundation (LEAF) which will and partnerships, to address the harm traffic to drinkaware.co.uk. The than in 2010. We also use our evaluate the most effective Drinkaware logo is on all of our internal communications channels programmes for educating children caused by alcohol abuse. Our most crucial marketing materials – from our TV to engage colleagues in Drinkaware’s about alcohol. LEAF is a blind trust partnership is with Addaction. Working adverts, brand websites, secondary own campaigns. Our Corporate funded by the industry but wholly independent. with the UK’s largest specialist alcohol abuse charity has informed our business practice in many important ways. But we believed we could go even further by putting our colleagues at the heart of our commitment to tackling alcohol harm. Our Addaction partnership Next year we’ll have been in partnership with Addaction for ten years. Working together, we pilot new ways of encouraging responsible alcohol consumption and reducing the harm caused by misuse. By evaluating the impact of “Launching ‘Act for Addaction’ brought our whole business together these projects, Addaction is then able to seeking more sustainable funding and ultimately roll out successful initiatives in support of Addaction’s goals to increase their unrestricted funding to communities across the UK. A great example of how this approach works is Addaction’s Over 50s Project. In 2009 and support them with skills and development for their staff. we supported the charity to establish a pilot programme which helped older people in West Glasgow who were both isolated and suffering from their abuse of alcohol. Addaction demonstrated how effective the programme is and in The response was overwhelming, with our ‘Act for Addaction’ week in 2014 were granted £25million from the Big Lottery Fund to roll out ‘Drink Wise, Age Well’ throughout the UK. June acting as a springboard for a series of volunteering and fundraising events throughout the rest of the year. In total, Right Turn Mutual Aid Partnership colleagues raised over £178,000 and volunteered 1,148 hours, with activities ranging from teams refurbishing Addaction service centres In 2014, we supported Addaction establish a pilot service We’ve been supporting and funding the nationwide to setting up mentoring programmes with the charity’s staff. ‘Act for in Sheffield supporting veterans struggling with alcohol rollout of Addaction’s Mutual Aid Partnership (MAP) Addaction’ has not only enabled us to underline our commitment to and substance misuse. Levels of harmful drinking are programme which we first funded in 2010. Mutual aid tackling alcohol misuse, but crucially, it has increased our colleagues’ higher in the Armed Forces community compared to the provides social, emotional and informational support by understanding of the issues and our business approach to tackling general population, but despite this obvious need, and to members of a group at every stage of their them. It helped us make big strides on our journey to creating members of the Armed Forces community accessing recovery. People help each other to make lasting colleagues as ambassadors for responsible consumption. misuse services are believed to be under-represented. behavioural change, sharing experiences and learning to Our support enabled Addaction to launch an awareness help prevent relapse back into alcohol or drug use. We’re really looking forward to doing it all again in 2015!” campaign to overcome the current barriers and reach more veterans earlier by setting up a regional network of In 2014 we supported Addaction to establish a MAP Hear from the veterans our colleagues are supporting ten Armed Forces peer support groups. programme specifically for young people. Project 3D was developed and launched to provide a supportive through Act for Addaction by visiting: environment for young people to maintain positive behaviours. www. .co.uk

28 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 29 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Our priorities Promoting health & safety • Safety is our number one priority. • Put the wellbeing of every colleague at the heart of everything we do. • Make HEINEKEN an accident-free environment.

Catherine Dent UK Health, Safety & Wellbeing Manager

Actions and results: As a colleague responsible for health and Accident frequency Health and safety is a priority safety in the UK I was delighted that our Health and safety was one of two new areas embodied Cases/100 FTE, HEINEKEN UK ‘Brewing a Better World’ strategy in the ‘Brewing a Better World’ strategy this year. All our Production Units recognised its importance and created a colleagues have the right to work in safe and healthy conditions, irrespective of their role or seniority, and this is 2014 0.32 new pillar.” a key area for us. Our goal is to make HEINEKEN an accident-free workplace and to empower everyone to 2013 0.35 help deliver this. 2012 0.9 I’ve worked in manufacturing for nearly 25 years and the last five have been in health and safety for HEINEKEN in the UK. I love the diversity of my role and I’m directly responsible for occupational health across the whole business and safety within Accident severity commercial and office functions. To verify the effectiveness of our management systems I have the privilege of visiting all the Lost calendar days/FTE, HEINEKEN UK UK locations to evaluate compliance to our rules, standards and Production Units procedures. We have a great team who are very committed to improving our safety and health performance and it’s great to 2014 14.4 talk to them and see the improvements they have made. 2013 3.5

Ensuring the health, safety and wellbeing of all colleagues is essential and this starts on induction around responsible consumption through ‘Cool@Work’ compliance. In 2014 we were awarded special recognition for our Driver Risk Reduction Driving down accidents Programme, which goes from strength to strength. For me A new area of activity in 2014 was a focus on company though it doesn’t stop there and next year I’ll be ensuring car drivers to ensure they drive in a safe manner. We compliance against our safe driving policy. Nearly 75% of collaborated with Eurofleeting who manage our HEINEKEN fatalities globally are related to road transport and company car fleet to assess the risk of each driver and to we have 650 colleagues who regularly drive on business in the To mark World Day for Safety and up skill them in safe driving. Firstly they were risk UK so it’s a key area.” Health, Mark Stewart from our Hereford assessed according to age, driving endorsements and ciderie created a fun and engaging way number of recent accidents. Once their level of risk was to ensure colleagues wear personal understood each driver undertook road traffic safety protection equipment (PPE). They could e-learning modules and in person training, according to be photographed inside a specially their risk level. Results were significant with high risk commissioned booth and become a real drivers’ risk rating levels reducing by 5% and medium risk life ‘Safety Figurine’. drivers by 2%.

30 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 31 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Our priorities

• Be at the heart of the communities around our production sites and offices Growing with communities • Bring the benefits of green space to communities around the UK • Help to create long term benefits for those who need it • Play our part in supporting the great British at the heart of communities

Maria Carter Orchard Leader

Actions and results: Bulmer Foundation since it was instrumental in allowing us to form We’re helping local people come together founded in 2001, and long supported an innovative new partnership, New Communities pillar local charities and our colleagues in Helping Britain Blossom. We are also to create or restore 100 community Whilst ‘Brewing a Better World’ their fundraising activities, but the helping develop skills for young orchards by 2017 by launching a unique formally added the pillar of ‘Growing addition of this pillar is a hugely people and energise sustainable with communities’, this has been an positive step as it embeds support for development through our Bulmer partnership and one which is already area of passion for our colleagues for communities into the heart of Foundation activity. bearing fruit!” many years. We’ve core funded the business strategy. In 2014 this was

Orchards can be magical places and as a company whose ciders contain 30% of all apples grown in the UK, it’s fitting that HEINEKEN is sharing that magic around the country through our new partnership, Helping Britain Blossom.

When HEINEKEN gave colleagues the opportunity to volunteer to become Orchard Leaders I jumped at the chance. I thought it was a great chance to give something back to the local community and make it a better place to live and work. It was daunting at first but with the support of the HBB team I’ve been playing my part in helping to establish a site for an orchard near my home in West Lothian. The exciting news is – we are working Helping Britain Blossom Through collaboration and core local environment and biodiversity, with the local council and other community groups and are on Helping Britain Blossom is a new funding, we’ve been able to bring Helping Britain Blossom aims to course to become the first new Helping Britain Blossom partnership launched on ‘Apple Day’, scale to two important charities and create healthier, happier and more community orchard in Scotland. 21st October, between The Urban jointly create, restore and give access sustainable communities. Orchard Project, the Bulmer to orchards across the UK. Share the magic of orchards in It’s been a fantastic opportunity to learn new skills and meet Foundation and ourselves. your community: new people. I’m thrilled that the company I work for has In creating or restoring 100 provided me with that opportunity – as well as the support to Orchards are at the heart of our community orchards by 2017, we’re make the most of it.” business and we wanted to share the aiming to make local areas better many benefits that we know they places to live, work and enjoy. bring with communities across the country. We turned to The Urban Research and our own experience Orchard Project, a small charity based tells us that orchards not only create in London and the experts in and improve green spaces, but they www.helpingbritainblossom.org.uk community orchards, for advice and bring a host of benefits to individuals support and together with the Bulmer and communities. From building helpingbritainblossom@ Foundation we established Helping community cohesion by reducing heineken.co.uk Britain Blossom. social isolation by providing a reason for people to come together to teaching new skills enhancing the @HelpBritBloss

32 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 33 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Having worked in countryside management for almost 18 years Pubs provide IT help for older people Andy Tennant and John Hawke from the Boot following a post-grad in Conservation Management, sustainability & Slipper in Yorkshire already ran a well attended is something that I’ve been interested in for a long time - but I coffee morning for senior citizens. A topic regularly discussed was the internet and its use didn’t appreciate quite how interested I was until embarking on in keeping in touch with family and friends and the Masters in Sustainable Development Advocacy.” in shopping. Along with support from East Riding of Yorkshire Council, they set up ‘Boot IT’ now attended by 25 people every week. Skype is the next topic to be targeted! We “My course is part funded by The collaboration between the While fitting my studies around my provide the free wifi and refreshments through HEINEKEN and run by the Bulmer university and the Bulmer Foundation day job and family life can be our Star Pubs and Bars group.” Foundation in partnership with the is excellent and provides an innovative challenging, I’m really enjoying the University of Worcester. It was mix of learning and work experience. opportunity to broaden my skills and created to train graduates to become What I’m especially looking forward to I’m hoping that when I complete the experts in sustainable development is a forthcoming placement with the course in 2016 I’ll be in a stronger - with a view to applying that thinking Helping Britain Blossom project, position to make sustainability a to the world of business, policy making having recently studied the role of central part of my future.” or in the community. bees in our apple orchards as part of Jo Miskin the course. SDA MASDA Student

Supporting the aims of the today an independent charity with a The first is collaboration with the UK’s Tackling underage drinking in communities Bulmer Foundation mission to improve sustainability in second highest rated university for Community Alcohol Partnerships (CAP) tackle underage drinking and Brewing a Better World means taking Herefordshire but with the ambition Sustainability - the University of associated anti social behaviour in local communities through co- Support for the Licensed a holistic approach to sustainability that the county becomes a Beacon Worcester and the Bulmer operation between alcohol retailers/licensees and local stakeholders. By Trade Charity and taking action at the macro and for change in the rest of the UK. Foundation. Put simply the MASDA providing advice, guidance and resources, CAP support communities in The LTC helps people in the pub micro levels. Herefordshire is the HEINEKEN remains heavily involved is helping train tomorrow’s developing their own capacity to deliver a co-ordinated, localised response trade who’ve fallen on hard times home of our cider business and the in the work of the Foundation with a sustainability leaders today. The to underage alcohol misuse. We’ve funded of Community Alcohol and HEINEKEN is a long-term 10,000 acres of apple orchards that seat on the board of trustees, and course sees students from a range of Partnerships since 2011 and the last year nine new local partnerships were supporter. It provides practical, are crucial to our business. Here our with long term funding that allows backgrounds undertake full and part established. 88 CAPs have now been set up across the UK. financial and emotional support ambitions on sustainable sourcing the charity to play an important role time study backed up with real world for a wide-range of issues and supporting communities come in bringing together local placements in industry and beyond. including money problems, together. Small, but perfectly stakeholders to address complex “Collaborative working between a wide range of housing issues, health concerns formed, the County offers the issues. The Foundation is not a grant The sustainable route map is a major local stakeholders with a clear focus on shared and family matters. Access to opportunity to trial new approaches giving body. Instead it provides an project which is mapping the key this information can often be a to sustainability. With a population even more important resource - time sustainability drivers and indicators aims and objectives is at the heart of the success challenge and so in 2014 we circa 186,500 and a geography and expertise from its staff and in Herefordshire to improve decision of CAP. I want to help CAP to build on its helped to fund a new support bounded by Shropshire, associates who have a wide and making in the county and to allow and care website and free Worcestershire, Gloucestershire, deep range of sustainability progress to be tracked. Led by the impressive track record and harness its full helpline. Already the feedback is Monmouthshire & Powys, knowledge. Bulmer Foundation, the project is a potential to improve communities up and down that this has been a crucial step Herefordshire is a large county but a major collaboration with dozens of in getting advice to those who manageable size to make a real This long term approach is brought local stakeholders. The aim is to the country that are blighted by underage need it most. difference. to life by two significant projects: the create a publicly available resource to Masters in Sustainable Development guide sustainable development in drinking and its consequences.” Originally formed by the Bulmers Advocacy (MASDA); and the the county for years to come. Derek Lewis, Chairman of CAP company, the Bulmer Foundation is Sustainable Route Map.

34 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 35 Introduction The big picture Our focus areas Values and behaviours Going Forward Introduction The big picture Our focus areas Values and behaviours Going Forward

Our colleagues charitable giving Our Colleagues Act for Addaction was our big focus in 2014, and we recognise the valuable time and effort many of our colleagues give to a wide range of causes. We help make their efforts go further through match funding, sponsored challenge events and Give As You Earn. Rob Chance Our two year graduate Graduate Engineer scheme combines on-the-job learning with We also changed our structure of structured training through Supporting our lessees Our support for colleagues doesn’t Business Development Managers so placements with real Since joining HEINEKEN in September stop at the brewery or office gates. In that they could visit their pubs more ownership to make a 2014 we launched a guide to help often to provide support. Lessees as a Graduate Engineer I’ve been given difference. It runs across our Star Pubs & Bars lessees to sell can also give feedback on them both Head Office and a huge amount of autonomy and alcohol responsibly. Called the through the ‘HEINEKEN On Track’ Production sites, with time ‘Leading a vibrant pub industry system every month and this two responsibility.” spent in a number of together – responsible retailing in way communication was a key focus different areas of the your outlet’, this guide provides in 2014. We also invested more than business. Since we started support and guidance on how to run ever before by providing £18.5m of the scheme four years ago, promotions responsibly, how to capital expenditure and committed 37 graduates have joined ensure bar staff know how to handle over £230k on our first year support “I finished my Masters in Chemical Engineering at the University our business, with 90% of drunk customers and a call to action packages to help lessees establish of Bath earlier this year and wanted to work for a company who them staying on in to get involved with best practice businesses. In 2014 we had our would allow me to use my initiative and give me some real ‘on the permanent employment at initiatives, such as ‘Best Bar None’. highest recruitment levels ever and a job’ experience. I’d previously worked for HEINEKEN in the last the end of the programme. year of my Masters course and I was keen to get back inside the Feedback has been hugely positive. 4% increase in lessees confident to company. On the graduate scheme I’ve a two year contract which take on longer leases. gives you the opportunity to rotate roles and sites. This increases your exposure, improves your experience at a variety of sites and Charlotte Wilde Chris Henbrey Joanne McCallum Ross O’Hara James Lynch allows you to interact with different people. Supply Chain Graduate Brand Manager E-Commerce Manager Brewing Operations Regional Sales Manager Desperados & Sol Graduate I started in ‘Utilities’ at Manchester Brewery, the home of Foster’s, which means I’m part of the team responsible for delivering efficient and uninterrupted supply of all utilities, and contribute to the production of the ‘amber nectar’! I’ve also been the acting Utilities Manager and had to make business decisions and react to production critical breakdowns. I help to deliver on our sustainability goals relating to energy consumption.

My next step in 2015 will be to choose a role from project engineer, shift manager or maintenance development engineer. I’d like to Our colleagues make HEINEKEN a great place to work. We’re driven by our mission and stay in engineering for the short term to continue to learn but values in three key areas: perhaps in a different area, whether it’s packaging or brewing. Enjoyment Respect Quality • Put a smile on consumers’ faces. • Respect ourselves, our customers • Passionate about making great I’d recommend taking a graduate engineer position, as there’s • Sponsor music, art and events to and consumers. cider and beer. great opportunity to learn and move about within the company. bring people together in • Promote responsible alcohol • Delight our consumers, day in It also helps to be a part of creating a product that you can really enjoyment. consumption. and day out. enjoy!” • At work getting the job done but • Make a positive different to • Committed to making have some fun along the way! communities. HEINEKEN a great place to work • Embrace diversity. and investing in our people. • Aim to be the greenest brewer in the industry.

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Empowering sustainability Total Performance Management (TPM)

TPM is a global HEINEKEN tool based on the Japanese LEAN Empowering sustainability is crucial to our success. Having great management and continuous improvement model. Every targets wrapped up in a holistic strategy is important but colleague in our Supply Chain and Brewery Operations embedding it and empowering colleagues is critical.” functions is required to use TPM in their day jobs.”

All our Senior Managers and Every production facility also has Every production site around the maintain machinery and how to spot country uses TPM to identify potential for improvement. Directors have the delivery of dedicated safety, environment Delivering Brewing a Better World is continuous improvement across all sustainability goals hard-wired and energy support. But one of five key performance metrics aspects of production. This works From a management perspective, into their own performance engaging colleagues at all levels for our leadership team and much particularly well for sustainability strategic activity is led by ‘kaizens’, or metrics. In fact 20% of Senior is crucial to making progress. We of their annual bonus depends on goals around CO and water as it rapid reaction teams, who will focus Managers’ bonus is dependent enable this through the LEAN activity being delivered. 2 on this performance. This process tool, called Total means that individual machine on an area of opportunity for an empowers action and Performance Management operators are empowered to take intense short period of time. The Site importantly also spreads (TPM), described below. By steps to improve that machine’s Manager often provides leadership responsibility and accountability. engaging all colleagues on the performance. This is backed up by for two or three key ‘kaizens’ each ground at our production sites, our ‘Star’ training facilities where we year at their site. Our unique monitoring tool, TPM is undoubtedly responsible show colleagues how to strip and Green Gauge, is also reviewed for much of our sustainability and monitored by the Board performance, particularly around every quarter and actions driven environmental improvements. from this. This executive sponsorship is important to Every production Our strategy ensure support at all levels of the business. facility has dedicated Protecting Reducing CO water 2 emissions energy, environment resources

and health & safety Advocating Sourcing Our focus responsible sustainably leads who are the consumption

local custodian of Promoting Growing with health communities the ‘Brewing a Better and safety World’ strategy. • Passion for quality Our values • Brands that people love • Enjoyment of life • Respect for people and planet

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Where next Our partners

Jeremy Beadles Corporate Relations Director

Our theme for 2015 is ‘Collaborating for Partnership is at the heart of our approach. Good’ and, as this says, we’ll be We’d like to thank the following organisations for their continuing to open up our business to support and advice in 2014.” scrutiny from our stakeholders and customers with a view to accelerating delivery against our Brewing a Better World goals.”

In 2015 we will again be collaborating with Addaction on our highly successful ‘Act for Addaction’ internal campaign to engage all our colleagues in responsible alcohol consumption. On sourcing – we will be driving improvements with our barley farmers through the Farmer Sustainability Group and with our apple growers through the self- assessment toolkit. Whilst we made good progress against our Brewing a Better World targets in 2014 I know we will need to remain focused to continue this progress next year, especially around water efficiency. On renewable energy we have plans to extend this in 2015 to use more self-generated biogas and to use wind power. The business environment is expected to again be tough but this will not lessen our resolve to be a company leading the agenda on ‘doing the right things right’.

I know it will be a busy year and I’d like to end by asking you to take the time to give feedback to us. Details on how to do so are on the next page.”

40 HEINEKEN UK Sustainability Report 2014 HEINEKEN UK Sustainability Report 2014 41 In 2014 we spent considerable time and We’re passionate about engaging with effort to engage widely across all our stakeholders, customers, consumers, everyone and opening up our business. colleagues and communities. We believe We want your views on this report and this has made us a stronger company. This year again we look forward to your our priorities. views. Please get in touch.

@heineken_UKCorp #BABW www.heineken.co.uk [email protected]

HEINEKEN UK Heineken UK Limited 3 – 4 Broadway Park South Gyle Broadway Edinburgh For the HEINEKEN global Sustainability Report 2014, visit: EH12 9JZ www.theheinekencompany.com/sustainability