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 Central de Cervejas e Bebidas (SCC) is part of the HEINEKEN 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 beer 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 Portugal. 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 Strongbow cider, 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 04 Central de Cervejas e Bebidas Sustainability Report 2014 Introduction The big picture Our focus areas Values and behaviours 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.