Sustainability Report 2015 Brewing a Better World Contents The big picture Our focus areas Values and behaviours Appendices Our Sustainability Report 2015 About this report This report summarises HEINEKEN’s progress on Brewing a Better World (BaBW) in 2015. We continue to focus on the topics of the greatest material importance to our stakeholders and our business. Following stakeholder feedback and the formal inclusion of BaBW as a dedicated pillar within our Company strategy, we are taking the first steps towards an Integrated Reporting <IR> approach, communicating the value we create from the resources we use. We produce our report in accordance with version 4.0 of the Global Reporting Initiative Guidelines (G4) – Core. We believe it is important to provide independent confirmation that the information in this report is reliable and accurate. This year, in line with the change in our financial auditors, we have asked Deloitte to provide us with limited assurance on the entire report. Deloitte summarises its procedures and conclusions in Appendix 1. We invited Kevin ‘Blaxtar’ de Randamie to transform this Sustainability Report into his own artistic expression. Click here to see the result. Contents The big picture Values and behaviours Further information online: CEO foreword 3 Employee engagement 42 We have again made a clear separation Brewing a Better World 4 Diversity 42 between information about our actions and What we said and what we’ve done 6 Code of Business Conduct 42 progress, and more in-depth contextual From Barley to Bar 8 Employees’ and Human Rights 43 information that can be found in the Benchmarks and achievements 9 sustainability section of our Company Stakeholder dialogue 10 Appendices website. This section includes the Important themes and our position 11 following information: 1: Deloitte Assurance Report 44 2: Reporting basis 45 • The G4 Reference Table Our focus areas 3: List of operating companies in scope 48 • More detailed information about our Protecting water resources 12 Reference information 50 Environmental Performance Reducing CO2 emissions 17 • Governance and measurement of Brewing Sourcing sustainably 25 GRI 4 Reference Table a Better World Advocating responsible consumption 30 • 32 case studies The GRI 4 Reference Table is a separate PDF Promoting health and safety 35 • 43 local sustainability reports and fact sheets on the Company website, and outside the Growing with communities 38 • Videos and infographics. scope of external assurance. For more information see: theheinekencompany.com/sustainability Heineken N.V. Sustainability Report 2015 2 Contents The big picture Our focus areas Values and behaviours Appendices CEO foreword During 2015 we have also embarked on various new partnerships. • We entered into a major partnership with the United Nations Industrial Development Organization (UNIDO). Together we have organised two community workshops in Ethiopia and Nigeria on the future of the local watersheds. We are also preparing a feasibility study in relation to renewable energy in Sierra Leone and other African markets • We are working with the World Wide Fund for Nature International (WWF) on a global water risk assessment update. And, together with Shift, we are making progress on topics related to the Human Rights agenda Jean-François van Boxmeer, CEO and Chairman of the Executive Board. • We have established partnerships to promote responsible consumption with global retail Welcome to our 2015 • As to improvement areas, we have faced chains such as Casino in France and Dia in Sustainability Report the expected challenges on reducing Spain. We are keen to expand further our CO2 emissions from distribution in the partnership activities in the off-trade. 2015 was a pivotal year for the world’s Americas region. For a detailed description of our partnership sustainability agenda. In December, negotiators As always, where we have not met our approach, see Spotlight on partnerships. from nearly 200 countries reached significant objectives, we explain why in the report. agreement to address climate change since Integrated Reporting After introducing a new, annual target for the issue first emerged as a major political Following direct stakeholder feedback, we have our health and safety pillar (in 2015), we are priority decades ago. Two months earlier, made a first step towards Integrated Reporting not yet in the position we would like to be. the United Nations introduced the Sustainable by disclosing non-financial KPIs in our Annual Development Goals designed to end poverty Although the number of accidents continued Report. This follows our decision to gradually and address a broad set of additional Corporate to decrease, it is of huge regret that we saw merge our Sustainability Report into the Annual Social Responsibility topics. a rise in fatalities. We grieve with the families, Report, reflecting the business imperative of friends and colleagues of those we lost. Whilst Brewing a Better World. During this publication These events provide additional input for our many of the fatalities are the result of violence exercise, it became obvious though, that we approach to creating a sustainable business, in Mexico or road traffic accidents in emerging need to further improve our non-financial “Brewing a Better World“, and several working markets, it remains unacceptable. Along with reporting systems to generate robust data groups within HEINEKEN are currently procedural changes and training, safety faster than in previous years. considering new and different opportunities requires a mind-set shift. This will take more in the areas of energy, water and responsible Thank you time. However, putting safety first is the consumption. To conclude, we are confident with the progress number one behaviour at HEINEKEN, we have made in 2015, though we are aware Performance so we are determined to improve in this area. of the challenges ahead. We can only achieve We are now half way through our Brewing For a detailed performance overview, please our ambition through the ongoing efforts of a Better World commitments for 2020 and visit the section “What we said and what we’ve our colleagues in the markets as well as by we have made good progress. done” on page 6 as well as for the health continuing to listen carefully to our stakeholders. • We have fully met the milestones for 2015 and safety targets on page 36. I would like to thank everyone who has in five areas. In particular, we delivered on supported us on accelerating our Brewing Sustainable Brands & Partnership energy and water reduction. Green fridges a Better World journey. In the course of last year, we significantly are replacing conventional cooling systems expanded the number of brands which include as expected. We have also increased the sustainability elements in their consumer percentage of barley, hops and apples communication. Our most global campaign which are sourced sustainably. Finally, is with the Heineken® brand and the newly we continued to develop partnerships launched “Moderate Drinkers Wanted’’, the to combat alcohol abuse latest in our campaign to make moderate Jean-François van Boxmeer • In four additional commitment areas, consumption aspirational. Alongside that, an CEO and Chairman of the Executive Board we are close to achieving our goals. increasing number of our local brands such as Amsterdam, 6 April 2016 These include water stewardship initiatives, Tiger, Birra Moretti and Nyongera are including compliance with our Supplier Code, local renewable energy or local sourcing messaging sourcing and media spend on ‘Enjoy and imagery in their brand communications. Heineken® Responsibly’ campaigns Heineken N.V. Sustainability Report 2015 3 Contents The big picture Our focus areas Values and behaviours Appendices Brewing a Better World Sustainability at HEINEKEN is a business imperative and one of our six key business priorities. Our Brewing a Better World approach is designed to create genuine economic opportunities for both our business and our stakeholders. ING WATER RES TECT OURC PRO ES S E R I E IT D N U U C I M N M G O C C O H 2 T E I M W I S G S I N O I N W S O R G BREWING Our six business priorities A BETTER ® P 1. Win in premium led by Heineken R O M O Y L 2. Shape the cider category T WORLD B I N A G N I 3. Lead by cool marketing & innovation H A E T A S L U T S 4. Be commercially assertive H G A N N I D C 5. Drive end2end productivity R S U A O FE S 6. Brewing a Better World TY A DV ON OCA PTI TIN SUM G RESPONSIBLE CON Our focus areas Global governance Building sustainability into The way forward: 2016-2018 and beyond Sustainability is embedded throughout our performance plans In this report we document our progress against business, for example in Supply Chain (Water Selected senior managers within each function at the three-year milestones we communicated for & CO2), Procurement (Sustainable Sourcing), a global, regional and local level had sustainability 2015. In order to meet our 2020 commitments, HR (Health & Safety) and Marketing & Sales objectives linked to their function to support we have created concrete new milestones for (Responsible Consumption). the delivery of our sustainability agenda. Bonus 2018. We will report our progress towards these targets were set for relevant senior managers in milestones each year in our Sustainability In 2015 the Executive Team, chaired by the area of energy, water and procurement. For Report. We have also started to review our the CEO, became the highest governing specific markets, sustainability objectives were sustainability strategy beyond 2020, based sustainability body, replacing the Corporate set in areas such as Supply Chain, Procurement on our stakeholder dialogue and materiality Affairs Committee. Progress on sustainability and Corporate Relations where relevant. analysis. We will share the outcomes in the was also shared with the Supervisory Board.