Sustainability Report 2010 Brewing a Better Future Contents Company profile Foreword 01 Foreword IMPROVE Heineken UK is the UK’s leading brewer and cider maker 05 Green Brewer and an operating company of Heineken N.V. (Netherlands), Brewing a Better 08 Green Commerce the world’s most international brewer. EMPOWER Future, Together 11 Engaging Employees Headquartered in Edinburgh, we employ around 13 Heineken Cares 2,300 people. As well as a brewer and cider maker, we manage around 1,300 pubs through our S&N As the UK’s leading brewer and cider maker, we As the first brewer to work with the Carbon Trust to IMPACT Pub Company business. draw on centuries of experience to produce a carbon footprint our products, we made clear that we 17 Responsible Consumption range of Britain’s best loved beers and ciders. were dedicated to ensuring that our water and energy 17 Partnerships for Progress We are passionate about our beer & cider brands We are passionate about our brands but equally use is as efficient as possible. Whilst we may already and the services that we offer to our customers. passionate about being a responsible and have met some of our targets, we continue to find sustainable business. ways to improve upon our usage. Our unrivalled portfolio of brands includes Foster’s, Heineken, Strongbow, Kronenbourg 1664, John Smith’s Last year, we committed to strengthening As a business committed to the UK, we are proud that and Bulmers together with a full range of niche and our performance by embedding Heineken’s more than 95% of our beer sold in the UK is brewed speciality brands. comprehensive sustainability strategy for the in the UK. Demonstrating our commitment, we are next decade - Brewing a Better Future. This investing in world-class processes to raise brewing We have breweries in Manchester, Tadcaster Sustainability Report gives an overview of just standards in the UK. Last year, for example, we and Edinburgh and our cider business is based some of our 2010 achievements. invested heavily in the recently aquired production in Herefordshire. site in Herefordshire, resulting in Herefordshire Our achievements so far on this sustainability journey being classed as a global centre of excellence for are demonstrated in our being awarded the highest cider production. ranking of Platinum Plus in Business in the Community’s 2011 Corporate Responsibility Index (CRI). We are the We are a major customer of British agriculture; 30% of only alcohol company to achieve platimum plus. all apples and two-thirds of all cider apples grown in the UK are used by Heineken. All of the barley used in the In scoring so highly in the UK’s leading voluntary brewing of our beer in the UK is grown in the UK. benchmark of corporate responsibility, we have clearly demonstrated that sustainability lies at the heart of our Through our products, job creation and agricultural commercial strategy and has influenced our business commitment, Heineken UK provides £1 billion in tax model. As well as being one of only 15 companies to each year to the UK economy and over 0.5% of the achieve Platinum Plus ranking, we also achieved ‘Best UK’s GDP. in Food and Drink Sector’. Despite the challenging economic times in which Beer and cider have been part of the fabric of British we currently operate, I am proud that Heineken society for centuries and are an element of a normal, UK is demonstrating that we remain focused on social lifestyle for the vast majority of the population. transforming our business in order to have a positive But we recognise that alcohol misuse continues to impact on the society in which we operate. be a problem and so we are committed to leading by example, advocating responsibility in the UK alcohol industry. We are a founding member of the Portman Group and a major supporter of the Drinkaware Trust. In 2010, as well as continuing to implement our own Stefan Orlowski responsible consumption strategies internally such Managing Director as Cool@Work, and working with our alcohol misuse Heineken UK partners, we are also leading the industry in the Government’s Public Health Responsibility Deal. Heineken UK. Sustainability Report 2010 1 Brewing a Better Future is an exciting journey These Sustainable Six will enable us to realise our Brewing a Better Future that has only just begun. To realise our vision of Brewing a Better Future goals and ensure a more sustainable world, we will make positive sustainability is embedded across all aspects of and long-term investments in the environment, our business. communities, people and partnerships. To make sure we reach our destination, we have focused Heineken UK is well regarded as a responsible our actions and energy around three business and has a solid approach to managing strategic imperatives: sustainability issues, but to ensure that we are In April 2010, we proudly unveiled Brewing a Better Future, our comprehensive and continually challenging ourselves to go further, in integrated sustainability strategy for the next decade. It increases the scope and scale • Continuously Improve the environmental 2010, we compared our current performance in of our work on sustainability and gives substance to our long-term ambition to be the impact of our brands and business the UK against the Brewing a Better Future targets world’s greenest brewer. It also allows us to balance our need for financial sustainability • Empower our people and the communities and ambitions. in which we operate with the role we play in society. • Positively Impact the role of beer in society. We acknowledged the actions that were necessary to address gaps or maximise opportunities to From these, we have grouped 23 programmes position Heineken UK as a leader in sustainability. of work into six inter-related initiatives that We put forward our UK ambitions for all will enable us to realise our Brewing a Better 23 programmes and developed a plan for Future goals. 2011-2013, with clear measures and targets to track our progress. Embedding Brewing a Better Future into Heineken UK To make our journey actionable and achievable, Our journey is These 23 programmes are grouped into six we have taken some significant decisions that will Brewing summarised by strategic initiatives known as the Sustainable Six: enable us to fully integrate our sustainability plans a Better Future within the business. • Green Brewer • Green Commerce We believe that in delivering Heineken’s • Engaging Employees sustainability plans, we will be a valued and To be the Our long-term • Heineken Cares effective partner that exceeds our stakeholders’ World’s Greenest Brewer ambition • Responsible Consumption expectations. • Partnerships for Progress Improve Empower Impact Three strategic Continuously improve Empower our people Positively impact imperatives the environmental and the the role of beer impact of our brands communities in society and business in which we operate 23 programmes grouped into six key initiatives Green Green Engaging Heineken Responsible Partnerships Brewer Commerce Employees Cares Consumption for Progress Five Governance, Senior management incentives, enablers Reporting & transparency, Supplier Code, Communication & engagement 2 Heineken UK Sustainability Report 2010 3 Green Brewer We are always aiming to improve our energy efficiency and reduce carbon emissions and water Heineken UK Joins Courtauld Commitment Improve consumption in our breweries. We set stretching annual targets as saving energy and water increases our profitability and reduces our costs In 2010 Heineken UK Breweries and cider mills use large amounts of and environmental impact. become a signatory to water and energy and so central to Heineken’s the second phase of the ambition to being the World’s Greenest Brewer Due to the closure of two of our breweries in Courtauld Commitment - is to continuously improve the environmental Reading and Newcastle in 2010, and the opening of a cross-industry a new cider plant at Ledbury in the same year, it agreement to reduce impact of our brands and business. was almost impossible to set accurate targets for packaging waste. For many years, Heineken UK has recognised 2010. 2010 targets are therefore not included in both the business and environmental value of this year’s report, but are set for 2011 – 2013. The Courtauld Commitment came into effect in 2005 when 40 off trade retailers ensuring our operations are as efficient as Specific total energy consumption and brand owners, facilitated by the Waste Resources Action possible. We will always be compliant with Programme (WRAP), agreed two cross-industry targets on breweries, cider, soft drinks and environmental legislation and regulations, but packaging - to design out packaging waste growth by 2008 and to water plants deliver absolute reductions in packaging waste by 2010. also go much further to ensure that our Mj/hl beer + cider production processes are designed to make The second phase of the Commitment, which runs from 2010 to 2013 135.9 1.9 2012, expands the targets on packaging. These will not only include efficient use of available resources and minimise 2012 136.4 1.7 reducing the weight of packaging put onto the market each year 2011 142.8 environmental impact. but also to increase the recycled content and recycling rate of 2010 166.6 packaging, as well as reducing its carbon impact. There are further “We are actively involving 2009 161.7 targets on reducing supply chain waste and household food and our suppliers, so we can 2008 156.2 drink waste. work in partnership on • Target • Actual Heineken UK’s participation as a signatory to the Commitment, more sustainable products supports one of our priorities for Brewing a Better Future in the UK - and processes. We also Total energy consumption for Heineken UK ‘Green Packaging and Innovation’.