Sustainability Report 2014 Brewing a Better World

“Fonte Fria” (Fountain) – Buçaco National Forest in Luso Region

CERVEJA Introduction The big picture Our focus areas Values and behaviours

Our Sustainability Report 2014 Sociedade e Bebidas (SCC) is part of the Company, the world’s most international brewer, with its brands available in 178 countries around the world. Sustainability is one of the core business priorities of SCC, and the program Brewing a Better World is a strategic focus.

We are Contents A proud, independent, 01 CEO Foreword global brewer committed 1,308 The big picture to surprising and exciting Employees 02 Brewing a Better World consumers everywhere. 03 Our 2020 commitments We value 04 From barley to bar A passion for quality, Our focus areas 21 enjoyment of life, and 06 Protecting water resources Brands respect for people and 08 Reducing CO2 emissions our planet. 10 Sourcing sustainably Sagres® enjoyed in 12 Advocating responsible consumption We want 14 Promoting health and safety To win in our chosen 16 Growing with communities markets with our major 39 ® Our ways of working brands Sagres, Heineken Countries 18 Values and Behaviours and Água de Luso.

See the SCC’s Sustainability Report 2014 in Note: SCC-Sociedade Central de Cervejas e Bebidas, www.centralcervejasbebidas.pt or simply SCC refers to the Group Sociedade Central de Cervejas e Bebidas, S.A., Sociedade da Água de For the global Sustainability Report 2014, Luso, S.A. (SAL) and Novadis. including detailed performance data and moving images visit: www.theheinekencompany.com/sustainability Introduction The big picture Our focus areas Values and behaviours

CEO Foreword

Ronald den Elzen CEO of SCC

“We continue expanding our business, in a responsible and sustainable manner, fulfilling the expectations of those who contribute daily with passion and dedication to the growth of our fantastic Brands and Company.”

In 2014 Central de Cervejas (SCC) • In 2014 Sagres kept its market • NOVADIS, our wholesale and celebrated 80 years of existence – a position as the leading Beer brand distribution company, expanded its truly historic landmark! We celebrated in . HEINEKEN® reported business, growing its portfolio with 80 years of permanent adaptation double digit growth in volume, leading wines, soft drinks and spirit and openness to change; 80 years supported by the unique and brands. NOVADIS now covers of resilience and vitality; 80 years unrepeatable event of the final of around 60% of on-trade channel. of dynamic performance and the Champions League, organised Throughout this report, we share with capacity to innovate; 80 years in Lisbon. our Stakeholders that it is possible investing in the quality of our • Innovations launched in the market to “GROW and WIN” in a sustainable products and services; and 80 in the last three years represented, manner. Reducing water and energy solid years of sustained growth! in 2014, 8% of the Company’s consumption, improving CO emissions global sales value, namely on 2 along the value chain, obtaining raw SCC was founded in 1934, following account of the launch in the beer materials from sustainable sources, the merger of four historic brands of segment of Sagres Radler promoting responsible consumption, beer (Portugália, Estrela, Coimbra Gengibre, Sagres Radler 0.0% , growing with communities and and Jansen), and since then a toast Affligem, Sagres beer can designed always ensuring our people’s safety, has been made to the end of the by Joana Vasconcelos, the launch health and human rights are Second World War, to Freedom, of , and in the examples of how we achieve growth to the country’s adherence to the water segment the launch of Luso in a sustainable manner under the European Community, to conviviality de Fruta Água de Coco, Luso Tea, Brewing a Better World Programme. between friends and to each goal Luso com Gás and our fantastic scored by our National Team, new Luso glass bottle, that replaced with the joy and freshness so the one which existed since 1903. characteristic of this historic brand. Ronald den Elzen Our strategy is to GROW and WIN CEO of SCC sustainably. Not only in the short term, but for the generations to come!

Central de Cervejas e Bebidas Sustainability Report 2014 01 Introduction The big picture Our focus areas Values and behaviours

Brewing a Better World Brewing a Better World is HEINEKEN’s aligned long-term approach to sustainability and one of our key operational priorities, whose aim is creating shared and sustainable value for the business, for our Company, society and the planet.

Our strategy

Protecting Reducing CO water 2 emissions resources

Advocating Sourcing Our focus responsible sustainably consumption

Promoting Growing with health communities and safety

• Passion for quality • Brands that people love Our values • Enjoyment of life • Respect for people and planet

02 Central de Cervejas e Bebidas Sustainability Report 2014 Introduction The big picture Our focus areas Values and behaviours

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

Protecting water resources • Reduce specific water consumption in the breweries by 30%1 to 3.5 hl/hl • 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 sustainably • 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 managers trained in road safety. • Company-wide: e-learning completed by 90% of markets with 90% employees trained. Growing with communities • Supporting communities in which we operate to foster ‘inclusive growth’ • Bottom-up philosophy with local targets where applicable.

1Baseline 2008 2Baseline 2010 3Baseline 2011

Central de Cervejas e Bebidas Sustainability Report 2014 03 Introduction The big picture Our focus areas Values and behaviours

From barley to bar Our approach to sustainability covers the entire value chain.

From barley to bar

Agriculture Malting Brewing Packaging Distribution Customer Consumer

Focus areas

Water

CO2

Sourcing

Responsible consumption

Promoting health and safety

Growing with communities

Ways of working

Values and behaviours

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Agriculture Packaging material Customers

In 2014 we continued the program Beer is packed in cans, bottles Beer is consumed cold and is of cooperation with farmers and and kegs or sold in tanks. Improving therefore cooled at the point of national agricultural coops, under the impact of packaging can be consumption in fridges or draught the barley and malt Committee achieved by optimizing the equipment. All new fridges purchased from APCV – Portuguese Brewers production process, changing the by SCC, are compliant with the Association, encouraging the culture design and increasing the recycling Group’s defined green standards. of malting barley and prioritizing the and reuse rate. purchase of domestic raw materials. Consumers Distribution Malting

We have been promoting the After beer is packaged, it is responsible consumption of beer for We malt barley in our own malt transported to a warehouse to a long time. In 2014 the scope of the house. In the process, we consume be distributed to customers using Portuguese Brewers Self-Regulation energy and water and therefore we different transportation modes, Code for commercial communication have implemented active energy including truck and sea freight. subscribed in 2006 was expanded and water reduction programmes. Distribution is optimised by changing to non-alcoholic beer as well as to transportation forms, drivers’ outdoor advertising. As a beverage Brewing training, and using more efficient industry, we have put in place a set engines and vehicles and networks of binding commitments and with improved design. partnerships aimed at reducing alcohol-related abuse.

The brewing process also consumes energy and water. Reducing energy consumption means increasing energy efficiency and switching to alternative energy sources where feasible. Water reduction is mainly achieved by optimizing the brewing process.

Central de Cervejas e Bebidas Sustainability Report 2014 05 Introduction The big picture Our focus areas Values and behaviours

Protecting water resources

Our priorities: Reducing water consumption • Continue concentrating all our Specific water consumption at SCC’s 95% efforts on improving water beverage production units dropped Water is central to our needs. We use it in our finished consumption efficiency levels from 2.5hl/hl in 2013 to 2.4 hl/hl product – beer is 95% water at our beverage production in 2014. units, warehouses and offices. This is a decrease of 3% compared • Invest in the implementation to last year. Sociedade Central de of projects that help us Cervejas e Bebidas, S.A. has a lower +40% achieve a significant reduction specific water consumption than the Demand for water has doubled in water consumption in our during the past 50 years and is HEINEKEN N.V. average of 3.9 hl/hl. production plants. expected to increase a further 40% by 2030 • Protect water resources SCC’s focus in more efficient water by minimising the impact consumption continued, with the Specific water consumption of our activity. optimization of the recovery water hl/hl beer + soft drink + water system in Vialonga.

Rounded Corners 2.4 hl/hl on bars: 2.5mm 2014 2.4 2013 2.5 2012 2.7 2011 2.7 2010 2.8

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In a water-intensive industry Since 2012, the such as beer brewing, every tertiary treatment drop counts. The Brewing a Better installation has World Programme prioritises improved its improvement projects based on efficiency by 58% impact and improvement potential. whilst consuming By optimising the brewing process 17% less electricity. and installing advanced membrane treatment technologies SCC has succeeded in significantly reducing both its freshwater consumption and The 2014 result represents an with Quercus the most accredited its wastewater discharge volumes. improvement of 53% when compared Portuguese Environmental NGO, with the starting point (2012). with the aim of conservation of The tertiary treatment system nature and biodiversity as well incorporates GE ecomaginationSM This improvement work has as contributing to the future and reverse osmosis membranes, and achieved also a 17% less electricity preservation of Luso water, where significantly improves the quality consumption – a triple win for the Água de Luso originates, and of treated effluent, allowing it to environment, local residents and also promoting the sustainable be reused in the brewery’s cooling the company’s bottom line. development of the Region. Among towers and steam boilers. the various actions, a highlight Protecting water resources of the partnership is the creation After 18 months of hard work, the Water is an important resource, of 24 acres of groves of native trees installation has seen its performance both now and in the future. and shrubs, facilitating the aquifer significantly improve, reaching at Considering its scarcity, we must recharge through the infiltration 2014 its record : 82 million litres all contribute to mitigate the of precipitation and its circulation reused water. challenges related with this. in depth, and the removal of invasive alien species. This is an initiative This reusage represents 0.3 hl/hl Under this commitment Luso of the utmost importance, thus reduction in water consumption Foundation created on the scope ensuring the future of the natural (30 litres less water per 100 litres of Sociedade da Água de Luso, resource of Luso water for the of beer brewed) so 10% reduction established a pioneering partnership next generations. in total brewery consumption!

Case Study: “Highly Commended” recognition experiences, developments and in Global Water Awards 2015 awarding projects which exemplified Raising the bar for the best practice in each area of interest. Portuguese brewing industry SCC was highly commended and awarded for their achievements in reducing water consumption by reusing water from waste water treatment plants at the GLOBAL WATER SUMMIT 2015, that took place in Athens on 27-28th April. This Summit was an event to gather the water community, sharing

Central de Cervejas e Bebidas Sustainability Report 2014 07 Introduction The big picture Our focus areas Values and behaviours

Reducing CO2 emissions

Our priorities: We use energy for heating and power throughout our production • Reduce emissions in processes – from brewing to -13.2% In 2014, Portugal decreased its kg production, by increasing packaging. We also have CO2 CO2-eq/hl in distribution activity energy efficiency and making emissions from our distribution, by -13.2% vs. baseline year 2011 renewable energy sources when delivering our product part of the energy mix. to our customers and from the cooling equipment our customers Total specific energy • Keep lowering emissions use at the point of sale. consumption – 58.6 MJ/hl of our fridges, by working MJ/hl beer + soft drink + water with suppliers to develop We believe it is our responsibility to best-in-class draught play an active role in the reduction equipment technology and of CO emissions across the value -8% making sure that all our 2 chain, from barley to bar. We have fridges comply with the 2014 58.6 ambitious targets for doing so within global fridge policy. 2013 63.6 the brewing, cooling, and distribution • Pursuing improvements in areas of our business. We are cutting 2012 74.4 the areas: Logistics and emissions by implementing good distribution and packaging practices at each stage, reducing materials production in order losses, optimising equipment, and to have carbon emissions making renewable energy part of reduction in all chains. the energy mix.

In 2014, Portugal decreased its kg

CO2-eq/hl by -13,2% vs. baseline year 2011 from Green Distribution.

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SCC’s total specific energy Electrical Forklifts consumption decreased from 63.6 MJ/hl to 58.6 MJ/hl, In 2014 SCC only used corresponding to an 8% decrease electric forklifts, enabling in relation to 2013. SCC’s specific it to reduce CO2 emissions. electricity consumption dropped by 6% in relation to last year. Consumption in 2014 was 6.1 kWh/hl lower than the 6.6 kWh/hl in 2013. Rounded Corners on bars: Specific electric consumption 2.5mm kWh/hl beer + soft drink + water

2014 6.1 Actions and results: Green Coolers: In terms of thermal and electric Cooling is crucial to our consumers’ 2013 6.6 energy reduction, the most enjoyment of our beverages. To 2012 6.9 important drivers were: reduce the total carbon footprint, • Continued efforts to reduce throughout 2014 we continued

Reduction in CO2 emissions is being boilers’ evaporation rate in the installing ‘green’ fridges, in some achieved through the improvement two wort production streams. cases replacing old fridges and in of our energy efficiency for both SCC currently has one of the other cases installing our fridges in thermal and electric energy lowest evaporation rates among new locations. The equipments’ production. The specific thermal HEINEKEN group companies. four ‘green’ characteristics which energy consumption (ex logistics & • Blanket insulation works installed include the use of a hydrocarbon biogas) of the beverage production in areas where they previously refrigerant, LED illumination, units decreased from 40 MJ/hl to didn’t exist. energy management system 36.5 MJ/hl. This is a 9% decrease • Launch of Improvement Teams and energy-efficient fans, allow from 2013 numbers. focused on reduction of electric for significant energy savings for power consumption in the cooling our customers. Specific thermal energy consumption system of lagering and filtration MJ/hl beer + soft drink + water and in the compressed air system 2014 36.5 in the Production Area. 2013 40.0 2012 49.5

Case Study: packaging. The aim of this plan The 7-Litre Água 3,500 tons PET reduction is to find PET packaging design de Luso bottle in Luso packaging alternatives that reduce weight reflects our Packaging material remains the whilst keeping performance across concern with the entire logistic chain and sustainability, largest source of CO2 emissions within our operations. functionality for consumers. Thanks as it uses 60% to this plan, a 3,500 tons reduction less PET/litre of Considering the environmental in PET (6% reduction) has been water than a impact of its activity, Sociedade da achieved over the last 10 years, 33cl bottle. Água de Luso (SAL) has been while secondary packaging material investing in the optimisation of its has been reduced by 600 tons. PET (polyethylene terephthalate)

Central de Cervejas e Bebidas Sustainability Report 2014 09 Introduction The big picture Our focus areas Values and behaviours

Sourcing sustainably

Our priorities: SCC continues to operate in a way that improves the quality of life of • Support the development local individuals and communities, +28% of the barley value chain, helps the environment and ensures a Portuguese Barley through the Brewers’ consistent supply of our raw materials. Association (Barley and Malt Committee) The company’s commitment to sustainability includes, among At SCC we continue to work hard on • As a key player in the others, the reduction of water the development of our value chain. market, develop long term consumption in production, We aim to ensure that all raw relationships with farmers protection of the environment materials used in the production and farmers associations and biodiversity in the areas of our drinks are obtained from • Ongoing compliance with our surrounding its facilities and sustainable sources, placing a high Supplier Code procedures. reduction of our carbon footprint importance on the purchase of from raw material transport. national raw materials.

Our relationship with suppliers We work closely with our farmers is of utmost importance for the and agricultural associations, helping achievement of our commitment them to improve the quantity and with sustainability. We must quality of their crop by benchmarking therefore work together to ensure them with international standards. the implementation of best practices along the entire value chain and The barley and malt committee, compliance with the principles laid set up by APCV – Associação down in our supplier code of conduct. Portuguesa de Produtores de Cerveja is renowned for the decisive role it plays in the promotion of National Brewing Barley.

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SCC is supplied with almost 100% national maize grits

Actions and results: By signing the Supplier Code, suppliers agree to comply with key As a result of our ongoing elements of integrity, environment 100% commitment with farmers and and human rights. Suppliers signed the Code of Conduct agriculture associations, in 2014 SCC increased its national barley We are committed to extending purchases by 28% in relation to our ways of working to our suppliers. 2013. In 2014, corn gritz supply obtained from national raw We expect all our suppliers to make materials was almost at 100%. a positive contribution to society by actively supporting and Suppliers Code: respecting our values in their By the end of 2014, 1,165 of our own business practice. suppliers signed the Supplier Code of Conduct, corresponding to 100% The positive results that we have of our total suppliers. 26 suppliers achieved so far encourages us to were submitted to Risk Assessment continue to pursue working with and integrated in the monitoring our suppliers to support sustainable programme EcoVAdis. business practices.

Case Study: farmers, identifying the best varieties Malt and Barley Committee from Barley and recommending the Set up in 2007 by APCV – Associação best options to farmers for their Portuguesa de Produtores de Cerveja, business interests. the Barley and Malt Committee, as This work has generated important well as INIAVE-Instituto Nacional de results, namely in relation to the Investigação Agrária e Veterinária “Pewter” variety, rated and approved (National Institute for Agricultural by the committee, which currently Research and Veterinary) which has represents 2/3 of all barley produced been responsible for many years in Portugal. for monitoring the EBC (European Brewery Convention) variety tests, collaborated directly with national

Central de Cervejas e Bebidas Sustainability Report 2014 11 Introduction The big picture Our focus areas Values and behaviours

Advocating Responsible Consumption

Our priorities: Actions and results:

• Make responsible Responsible Commercial 90% consumption aspirational, Communication of the Investment in Advertising by Brewers is monitored by ICAP communicating the message Responsible consumption is one directly to our consumers of our greatest business challenges. through our brands. SCC is committed to being a part that in the case of alcoholic beer of the solution, contributing with • Build consistent partnerships communication it would first submit actions that are beneficial to both and work closely with local to the approval of said Institute, all society, consumers and the company. authorities, NGOs and alcoholic beer brands’ communication specialists to encourage for outdoor publicity, namely in 8x3 Through credible and recognised responsible consumption and format, including an analysis of the partnerships, we have made address alcohol-related harm. social responsibility message “Be significant progress in addressing responsible. Drink in moderation.” • Taking action at industry the issue of abusive consumption, level, in collaboration with ensuring that all our commercial In this agreement non-alcoholic beer our Brewers Association in the communication is responsible, should have the same regulatory following key areas: underage consistent and conforms to our treatment of alcoholic beer. drinking, binge drinking and strict rules, as well as to laws and With the implementation of this safe driving. regulations. Through APCV voluntary limitation, over 90% of (Portuguese Brewers Association) investment in advertising by brewers, and in the scope of the members of APCV, is monitored by implementation of the Portuguese ICAP. This commitment began in Brewers Self-Regulation Code for 2007, and has been continuously Commercial Communication, SCC extended to include new advertising jointly agreed with ICAP (Civil formats. This clearly shows APCV’s Institute for Self-Regulation commitment to having socially of Commercial Communication)

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responsible commercial Safety road actions communication that respects were taught in 5 ethics and promotes, in an exclusive distribution centres manner, the moderate and of NOVADIS responsible consumption of beer. wholesalers. Making Responsibly consumption aspirational Over 260 employees As premium sponsor and official were impacted. beer of the 2014 festival edition of Optimus Alive’14, Heineken® and main stage. Optimus Alive’ 14, locations around the country. promoted a series of actions one of the most emblematic music The aim of this campaign is to aimed at informing and raising and entertainment events in make employees advocates for the awareness of visitors, aged Portugal, with a great international Responsible Consumption, wherever 16 and above, to drink beer in projection, is attended by around they may be, incorporating the moderation and responsibly. We 150 000 visitors, 15 000 of which are messages in their daily personal continued spreading the message from 43 different nationalities. This forms of behaviour. “Jolas”, the that responsible consumption can partnership is very important for the mascot of this campaign and be associated with moments of Heineken brand as it seeks to make representing the consciousness pure enjoyment among friends, responsible consumption aspirational of each one of us, started the such as in music events, where to a larger audience. conversation among employees, Heineken® naturally advocates raising the latter’s awareness to positive behaviours in relation to Raising awareness the consequences of abusive alcohol abuse. “Don’t let abusive consumption consumption. In a partnership with speak for you”, was the theme of the the Portuguese Road Prevention During the three days of the Optimus Enjoy Responsibly internal campaign Association, we developed road Alive’ 14, the only cups allowed to be developed by SCC jointly with safety actions at five distribution used in the Festival were the ones another 46 markets of the centres of NOVADIS wholesalers, with the message “≥16, A Música HEINEKEN Group. The aim of this raising the awareness of their 260 não tem Idade. O Consumo tem.” – campaign was to show the “other employees to the issue of safe “≥16, Music has no Age Limit. But side of the coin”, by exposing wrong driving. These employees were Consumption has.” Simultaneously behaviour vs right behaviour. Our given the opportunity of trying with this and during breaks recently developed storytelling different devices that simulate in-between concerts, the campaign programme, which includes several the consequences, among others, ‘Dance More, Drink Slowly’, was distinctive actions, engaged around of drinking & driving. activated on the Heineken stage 1,500 employees at different SCC

Case Study: consumption speak for you” “When you have an abusive campaign, and Salvador Mendes de consumption you stop being yourself.” Almeida, the founder of Salvador’s On the 29 September, a closing Association, who shared his session to the internal Enjoy testimony as a victim of the Responsibly Day took place, with consequences of drinking & driving. two special invitees, a standup Ronald den Elzen, CEO of SCC made comedian – Salvador Martinha, the final statements reinforcing the who, in a funny way, shared the message: “Enjoy Responsibly is a messages of “Don’t let abusive commitment of each one of us”.

Central de Cervejas e Bebidas Sustainability Report 2014 13 Introduction The big picture Our focus areas Values and behaviours

Promoting Health and Safety

Our priorities: Actions and results:

• Health and safety is an Accident Frequency integral part of our business Throughout 2014 we continued to focus on occupational safety • Keeping our employees 1963 and accident prevention. NUMBER OF healthy and safe remains ATTENDANTS our top priority However, accident frequency • Addressing safety across increased in line with the higher the whole of Company with number of staff members, with COMPLETION RATE a focus on road safety and accident severity decreasing from OF THE ELEARNING MODULE reduction in the accident 69 to 58. frequency rate during production Our concern with health and safety Accident frequency at work goes well beyond raising the cases/100 FTE for all sites awareness of staff at our production sites, extending our action to a 2014 2.4 culture that promotes safety not 2013 2.4

only in this area, but also to our sales 2012 1.4 and distribution employees.

Accident severity That’s the reason why we lost calendar days/100 FTE for all sites implemented a global strategy that addresses safety across the entire 2014 58 Company, focusing on road safety. 2013 69

2012 79

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Improving Safety SCC’s Safety Programme At SCC we focus on creating a culture that promotes safety as the means to achieve a ZERO ACCIDENT target.

However, this will only be possible with the joint effort, engagement and dedication of all employees, by integrating safety in their daily routines, both in and out of the company.

In the scope of the programme In a partnership with PRP – Health Care and well-being “Crescer em Segurança” (Growing Prevenção Rodoviária Portuguesa Our concern with our employees’ Safely), communication initiatives (Portuguese Road Accident health is embedded in our culture like Quase-Acidentes (Near Misses), Prevention) SCC developed a series and procedures. As such, all SCC’s Etiquetas Amarelas (Yellow Tags) of theory-practical awareness permanent employees are now and Observações Preventivas actions under the theme of Safe covered with health insurance, offering (Preventive Observations) play Driving, which impacted more than effective and quick assistance at very an important and decisive role in 600 employees of the Vialonga advantageous conditions. Likewise, accident reduction in our premises, and Água de Luso production sites, three health care plans were also put involving or not involving sick leave. as well as three distribution centres at the disposal of our employees, of NOVADIS, located in the North, offering advantageous health On April 28th, SCC celebrated World Centre and South of the country. insurance subscription to the latter’s Safety Day together with all the family members. HEINEKEN Group OpCo’s, focusing In the pursuit of a safety-driven on Road Safety and involving all culture and once again in employees, who not only use their collaboration with PRP, a whole vehicles for their daily routines week was dedicated to this issue (home/work), but also those whose in December, with the organization car is their work tool (primary and of a number of activities that were secondary distribution and sales). attended by all employees.

Case Study: SCC implemented initiatives like “What does safety mean to you?” the systematic communication During 2014, employees had of near misses and preventative to face various challenges aimed observations; the weekly contest at promoting and embedding an “Diga a Frase de ...Segurança” (Say interdependent safety culture in the sentence … Safety) chose the which people not only worry about best sentence which demonstrated themselves, but also about others. and encouraged safety every single minute of the day.

Central de Cervejas e Bebidas Sustainability Report 2014 15 Introduction The big picture Our focus areas Values and behaviours

Growing with communities

Our priorities: Actions and results:

• One of the company’s top Investing in our 24 acres concerns is to participate in the communities Of groves of native trees and shrubs created in scope of the region’s economic and social Our focus is on establishing protocol between Luso Foundation development in which our sites long-term community investments and Quercus. are located. through partnerships that are aligned with our business and • Focus on long term sustainability agenda. communities investments €114,500 through partnerships. As one of SCC’s major concerns is to SCC’s Social Investment • Prioritise communities’ participate in the region’s economic programs related with Brewing and social development, in 2014 of Vila Franca de Xira which aims to a Better World focus areas. the company renewed the financial support the municipality’s poorer support to the council’s community, families and most affected by the where the Vialonga’s Brewery is country’s economic situation since located and also continued to 2009 as well as various associations promote innovative projects that of this community, evidence of SCC’s had a positive impact on the local awareness and participation. economy and preservation of water and natural heritage of the region Sociedade da Água de Luso (SAL) is Luso, where our water plant is located. closely intertwined with the town of Luso, as the town’s largest employer. In times that have been particularly SAL feels it has a responsibility to difficult to Portuguese people, SCC is positively impact the region’s aware of the need for big companies sustainable development. It does to set good examples. The annual so through the Fundação Luso, a protocol signed with the Municipality non-profit organization that focuses

16 Central de Cervejas e Bebidas Sustainability Report 2014 Introduction The big picture Our focus areas Values and behaviours

on the areas of health, the “Give the Liter environment and the community. for those who Initiatives as the “Entrepreneurial most need!” Prize” which rewards innovative projects in areas such as agriculture, trading, services and tourism, advancement of knowledge and information related to water and human health clearly shows SCC’s engagement with local communities.

Volunteering jobs and the way they work together Buçaco e o Recurso Hídrico da Água In the scope of our Corporate Social to improve the place where they live. Mineral Natural de Luso” took place Responsibility Programme and in On International Volunteering Day, between June 20th and September association with Junior Achievement SCC invited its employees to take part 30th. Over 42 000 visitors had Portugal (J.A.P.), SAL’s employees in this year’s Christmas / Volunteering the opportunity of learning about continued to engage in volunteering initiative – “Dar o Litro por quem mais the Luso aquifer and its thermal initiatives in the local community precisa!” (“Give the Liter for those baths, the biodiversity of Buçaco, of Luso, namely through the who most need!” – at Cercipóvoa – the fauna and flora of this mountain employee-designed project Aprender Cooperativa de Solidariedade Social, area and the project Criar Bosques a Empreender (Learning to be located in Póvoa de Santa Iria, (Creating Woods) implemented in Entrepreneurial), the theme of this which supports disabled children Serra do Buçaco, the source of Água year’s edition being The Family and youths, undertaking de Luso. This initiative was shown and the Community. improvements like painting and on TV. During Minuto Verde, an small repairs in various rooms environmental section designed by The objective of The Family and throughout the institution. Quercus for the public TV channel. Community theme is to provide a better understanding of what a family Raising awareness See more at: really means and its importance As part of the protocol signed with www.sociedadeagualuso.pt/pt/ to the Community, the differences Quercus, the exhibition entitled noticias-media/videos-fotos/.aspx between its respective members, their “Ecossistema Florestal da Serra do

Case Study: proposed by institutions from around reinforced the financial support “Mais para Todos” - the country, that dedicate themselves given to more than 50 projects “More for Everyone” to helping local communities. and simultaneously consolidated Fundação Luso and the water brand SCC’s relationship with its partner SCC’s donation to the project “Mais LIDL Portugal. Água de Luso, market leaders in their para Todos” (More for Everyone), in respective category, have a long the amount of 40.000 Euros, standing, structured and consistent Sustainability and Social Responsibility programme. Because “helping those who need it most” is also embedded in Água de Luso DNA’s, we have joined our off-trade customer LIDL in a solidarity fund raising initiative aimed at supporting projects

Central de Cervejas e Bebidas Sustainability Report 2014 17 Introduction The big picture Our focus areas Values and behaviours

Values and behaviours

Our priorities: Code of Business Conduct

• Passion for quality • Brands that people love 738 • Enjoyment of life EMPLOYEES COMPLETED • Respect for people and planet

EMPLOYEES COMPLETED THE ELEARNING ON HEINEKEN CODE OF Our values mirror what we represent BUSINESS CONDUCT IN 2014 as a corporate citizen, a business partner and employer. How we behave and how we work together reputation and pave the way for is key to our success. our future success.

We are committed to conducting We have adopted a global business with fairness, integrity and Employees and Human Rights Policy respect for the law and our values. that clearly sets out the standards This commitment is laid down in we expect our employees and our our Code of Business Conduct. suppliers to live up to. It lays out 11 clear standards on employee By displaying our values, establishing and human rights, including trusting relationships and adhering non-discrimination, forced labour to our Code of Business Conduct, and harassment, as well as discipline we are helping to keep our excellent and grievance procedures.

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The Employees and Human Rights Unforgettable Journey Policy (EHRP) is one of the underlying policies of the Code of Business Conduct since 2013.

Stakeholders Dialogue

Overall reputation score 2014

SCC 4.36

HEINEKEN 4.20

Source: ReputationInc

Since 2011 ReputationInc Consultants has tracked the Our People are one of the main At the end of the different stages reputation of SCC with its key strategic pillars of SCC’s business. of the programme, which included stakeholders. Each year, we conduct As such, in 2014 we launched various dynamic challenges, the 8 in-depth phone interviews with the trainees programme final candidates, selected among 800 a selection of 30 stakeholders in “The Unforgettable Journey”, candidates, had the opportunity of Government, Suppliers, NGOs, an innovative recruitment concept demonstrating their talent, energy, Customers and Trade Associations. that values the talent of youths with passion, desire to win and ambition to a passion for our company brands. become a member of the SCC team. This reputation study shows that our The main goal of this programme Stakeholders see SCC as a Company was to find new young talents that takes great care of its employees, and hence get even closer to the led by high quality management. millennium generation. To this end, SCC created an audacious In 2014, we held several face-to-face communication campaign with meetings with our partners aimed a strong presence of our brands at achieving improved and more at various universities in Lisbon active listening, using their and Porto. suggestions to improve the way we do our business.

Our Stakeholders consider SCC to be a leading Company, feeling a strong emotional bond with our Company and brands, based on long term relationships.

Central de Cervejas e Bebidas Sustainability Report 2014 19 About this Summary Sustainability Report See the SCC’s Sustainability Report 2014 in www.centralcervejasbebidas.pt For the full Sustainability Report 2014 including detailed performance data and moving images, visit www.sustainabilityreport.HEINEKEN.com

For the global Sustainability Report 2014, visit: www.theheinekencompany.com/sustainability

Company Name Production and text Graphic design and A SCC-Sociedade SCC electronic publishing Central de Cervejas e Corporate Relations Addison Group www.addison-group.net Bebidas, S.A. Photography publication HEINEKEN Apartado 15 SCC 2626-851 Vialonga Portugal T: +351 21 952 86 00 E: [email protected]