Sustainability Report HEINEKEN Asia Pacific Brewing a Better Future

Transcription

1 Sustainability Report 2013 HEINEKEN Asia Pacific Brewing a Better Future

2 The big picture Foreword A New Chapter: HEINEKEN Asia Pacific 2013 has been a most exciting journey for Asia Pacific Breweries Limited (APB) since becoming a part of the HEINEKEN Company, creating a new chapter in our renowned history of brewing world-acclaimed beers that consumers love. The integration of APB and Heineken N.V. (HEINEKEN) was completed this year. In February 2013, APB was delisted and then together with the existing Regional Office renamed Heineken Asia Pacific Pte. Ltd. (HEINEKEN Asia Pacific) in October. With this change, HEINEKEN Asia Pacific became the regional hub for the Company. Based in Singapore, I believe we are positioned in an ideal location to coordinate global efforts and tap into the growth potential of this diverse and exciting region. Inclusive growth Our regional full-year financial performance was reported in HEINEKEN s results for the first time in December We achieved a volume of 22.7 million hectolitres and a Group Revenue of $3,979 million. The Group Operating Profit (beia) was $964 million 1. Our region contributed about 18% of HEINEKEN s total operating profit (beia). In April 2013, we successfully divested our stake in Shanghai Asia Pacific Brewery Company Limited (SAPB). A month later, we signed a joint venture agreement with Alliance Brewery Company Ltd to build a greenfield brewery in Myanmar, which is expected to be operational by the end of Figures reported are based on Group results which include consolidated volume and attributable share of our joint ventures and associates HEINEKEN Asia Pacific Sustainability Report

3 The big picture Foreword continued Today, our footprint spans across 20 countries in this region, operating 24 breweries with approximately 8,000 employees in our care. We are now one Company with a combined, bigger brand portfolio of many well-loved beer brands. Despite our strong regional presence, we recognise that stable, growing local economies are fundamental to our long-term business success. For HEINEKEN Asia Pacific to achieve consistent business growth, we must prioritise and commit to earning the trust of all our stakeholders, the sustainable use of environmental resources, investing in communities and responsible consumption. Brewing a Better Future During my five years at APB, now, HEINEKEN Asia Pacific, it has been very important to me that our company is a reputable and trusted member in the societies where we operate. This year we are honoured to have been named the winner of Best Sustainability Report at the Association of Chartered Certified Accountants (ACCA) Singapore Awards. We also received many other sustainability-related awards in different parts of the region. Together, these recognise that our sustainability approach is heading in the right direction. More importantly, these awards acknowledge all our colleagues, who believe in our sustainability agenda and have worked hard to implement responsible practices across different business functions. This year, we have embedded and integrated Brewing a Better Future, one of HEINEKEN s key strategic business priorities. Sustainability is being built into the performance plans of our senior managers. I am confident that this approach, aligned with our core values, will further create shared value for all stakeholders and drive our topline growth. Brewing a Better Future focuses on four areas protecting water resources, reducing CO₂, sourcing sustainably and advocating responsible consumption which we directly impact through our operations. This focus allows us to engage meaningfully with stakeholders to stimulate fresh ideas and ways of thinking, to positively make a difference to our business and our society. Making steady progress In this report, you will see that in the inaugural year of implementing Brewing a Better Future, we have made steady progress in Asia Pacific, not just against our global targets for 2015, but also towards our ambitious global 2020 commitments. We reduced our average water consumption to 4.0 hl/hl of beer and soft drinks, a 9.1% reduction from 2012 to In line with global water compensation commitment, we introduced Stewardship, a new sustainability initiative, to three communities in Indonesia and Thailand where our breweries access to clean water is limited and scarce. We also reduced our regional CO₂ by 4.5% from 2012 to However, there is more to be done in this area, as our CO₂ are higher than the Group average. We will step up our efforts in increasing energy efficiency in all our breweries, and pilot new HEINEKEN Asia Pacific Sustainability Report

4 The big picture Foreword continued initiatives in carbon footprint studies and the use of solar energy in In sourcing sustainably, we recognise that implementation of the HEINEKEN Supplier Code across all Operating Companies (OpCo) in Asia Pacific will take time. This year, we focused on implementing Step 1 of the four-step process, in order to guide our suppliers in practising responsible sourcing that has a positive impact on the environment. responsible consumption continues to be a clear and on-going priority in our sustainability journey. We took a major step forward with our award-winning Have a Good Night Out regional campaign and active partnership engagements with industry organisations, non-governmental organisations (NGOs) and provincial governments to combat and raise awareness of alcohol abuse. In addition, there were zero fatalities in working with or for the Company in Asia Pacific for the third consecutive year of our formal sustainability reporting. We will continue to enforce better practices and encourage behavioural change to foster a zero-accident culture. Looking ahead: Asia Pacific s challenges and opportunities As a global business, our Company is susceptible to unprecedented economic, social and climate change that happens all over the world. In a region as culturally diverse as Asia Pacific, there is no simple solution to any of these issues and tackling such challenges requires the effort of multiple parties. We have a responsibility, not only to the society we live and work in, but also to the one that we will leave for generations to come. It is important for us to constantly find ways to turn these challenges into opportunities. Asia Pacific is a region on the rise with tremendous potential in economic growth, technological progress and cultural influence. I believe that we can leverage our growing presence to inspire and effect positive change and action in the region, particularly in developing economies. Through enhancing regional governance and inspiring our employees on sustainable development, I am confident that we can continue to report positive progress for Asia Pacific, particularly in our four focus areas. What we achieve here in Asia Pacific will contribute to our efforts on a global scale to create a better and stronger society for the future. I am sure you will find this report valuable and insightful and I welcome you to share your comments on our performance. Roland Pirmez, President, Asia Pacific HEINEKEN Asia Pacific Sustainability Report

5 The big picture About HEINEKEN Asia Pacific Today, we are proud to be part of the HEINEKEN Company. HEINEKEN Asia Pacific has a presence in over 20 countries across the region, with 24 operating breweries and approximately 8,000 employees under our care. We have a winning portfolio of over 50 acclaimed beer brands and variants including Heineken, Tiger, Anchor, ABC Extra Stout and Baron s Strong Brew. Together with our leading local brands in the region Bintang in Indonesia, SP Lager in Papua New Guinea, DB Export and Tui in New Zealand, Number One in New Caledonia and Biere Larue in Vietnam. Our wide portfolio satisfies the diverse needs of our consumers. Headquartered in Singapore, Heineken Asia Pacific Pte. Ltd. (HEINEKEN Asia Pacific) is the Regional Office for Heineken N.V. (HEINEKEN) in Asia Pacific. In November 2012, the world s third largest brewer HEINEKEN acquired Fraser and Neave Limited s stake in Asia Pacific Breweries Limited (APB). At the time, APB was listed on the Stock Exchange of Singapore. In February 2013, APB was delisted when HEINEKEN acquired all of its remaining shares owned by the public. The Regional Office, together with the newly acquired APB, was renamed HEINEKEN Asia Pacific in October We are committed to the sustainable use of resources, investment in communities and responsible consumption. With more than a century s experience in brewing beers, our Heineken, Tiger, and other regional brands meet European standards of brewing excellence following the same principles of success quality ingredients and a perfectly controlled brewing process. In December 2013, HEINEKEN in Asia Pacific achieved a volume of 22.7 million hectolitres and a Group revenue of $3,879 million. The Group Operating Profit (beia) was $964 million. 1 1 Figures reported are based on Group results which include consolidated volume and attributable share of our joint ventures and associates Watch this video to find out more about us! More information on financial performance and corporate governance practices can be found in the HEINEKEN Annual Report 2013, available on our website. HEINEKEN Asia Pacific Sustainability Report

6 The big picture Our approach, focus and commitments Brewing a Better Future is HEINEKEN s long term approach to creating shared, sustainable value. It forms the basis of the sustainability priority within HEINEKEN Asia Pacific s regional strategy. Our business priority Our strategy Our focus Our ways of working water resources sustainably Embed and integrate sustainability responsible consumption Asia Pacific is a dynamic and diverse region. In order to operate successfully, we must contribute to the economic and social well-being of the people in the markets that we work in, in order to preserve and protect the physical environment that our communities depend on. Brewing a Better Future focuses on four key areas where we can make the biggest difference. Each of these areas is highly relevant to our day-to-day business operations, and our stakeholders. Each focus area is underpinned by clear commitments that state our global ambitions for 2020 with three-year milestones to be achieved by Our global 2020 commitments: water resources Reduce specific water consumption in the breweries by 25% 1 to 3.7 hl/hl Aim for significant water compensation/balancing by our production units in water-scarce and distressed areas CO2 In production by 40% 2 Of our fridges by 50% 3 From distribution by 20% 4 in Europe and the Americas 5 sustainably Aim for at least 50% of our main raw materials from sustainable sources 6 Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent Ongoing compliance with our Supplier Code procedure responsible consumption Make responsible consumption aspirational through Heineken Every market in scope 7 has and reports publicly on a measurable partnership aimed at addressing alcohol abuse Deliver global industry commitments Our values and behaviours are fundamental to how we do business and contribute to society. Our three core values are passion for quality, bringing enjoyment to life and respect for individuals, society and planet. They guide us to achieve our targets. 1 Global baseline Global baseline Global baseline Global baseline Scope is Western Europe (WE), Central & Eastern Euope (CEE) and Americas, 23 of our largest operations: Belgium, Finland, France, Ireland, Italy, Netherlands, Portugal, Spain, Switzerland, UK, Austria, Belarus, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Brazil, Mexico, USA 6 Based upon global volume, in scope are barley, hops, cider apples, fruit concentrates, sugar, rice, sorghum, wheat, maize 7 Out of scope are Regional Offices, Islamic markets and small export markets where we don t have staff or a presence HEINEKEN Asia Pacific Sustainability Report

7 The big picture Link with business strategy Our business priorities Grow the Heineken brand Leverage the benefits of HEINEKEN s global scale Consumer-inspired, customer-oriented and brand-led Drive personal leadership Capture the opportunities in emerging markets Embed and integrate sustainability Sustainability is one of our six key priorities in our Strategy to Win. Our focus is to further embed and integrate sustainability within the Asia Pacific region, creating real sustainable value for all our stakeholders. This enables HEINEKEN Asia Pacific to achieve its five other business objectives. Read about our business strategy in Heineken N.V Sustainability Report. HEINEKEN Asia Pacific Sustainability Report

8 The big picture Value chain From barley to to bar bar Agriculture Focus areas Malting Brewing Packaging Distribution Customer Consumer The HEINEKEN approach to sustainability covers the entire value chain from barley to bar. It means that we have considered how to improve the sustainability of each step, from the point at which the barley and hops are planted through to the point at which the consumer has enjoyed their beverage and disposed of the packaging. consumption Ways of working Find out how HEINEKEN Asia Pacific is aligned behaviours with the global value chain at each stage. HEINEKEN Asia Pacific Sustainability Report

9 The big picture Stakeholder engagement Our stakeholders are part of our journey to sustainability. These are people who are interested in or affected by our activities and the way we do business. In Asia Pacific, we have a wide range of stakeholders who have diverse backgrounds. This requires us to engage each stakeholder differently to build better relationships. This way, we can stay focused on our core business of brewing beer. Stakeholder groups which HEINEKEN Asia Pacific engaged at a regional level in 2013 groups with which HEINEKEN NV engaged at a global level in 2013 In 2013, our Regional Sustainability Steering Committee led engagement with multiple stakeholders across our Asia Pacific operations. External stakeholders were engaged via a global reputation survey that was conducted in New Zealand and Singapore. We engaged Ernst & Young to conduct face-to-face interviews with senior leaders in our Regional Office. Throughout 2013, our employees were also engaged in surveys and other activities to encourage dialogue. Industry associations Governments Suppliers Stakeholder engagement is always ongoing as part of our business activities. The objective is to obtain feedback from partners such as non-governmental organisations (NGOs), industry players and governments, on emerging issues and concerns. This allows us to assess business risks and opportunities so that we can make better business decisions. Stakeholders help us to stay focused, so we continously engage with them through reputation research and dialogue. Consumers Stakeholder engagement NGOs & international organisations Employee representatives Media Employees HEINEKEN Asia Pacific Sustainability Report

10 The big picture Stakeholder groups Who we engage How we engage Our Focus Governments Suppliers NGOs and international organisations Media Employees Consumers Industry associations Employee representatives Reputation survey Regular scheduled meetings Partnerships Reputation survey Ongoing dialogue Reputation survey Regular scheduled meetings Ongoing dialogue Reputation survey Media briefings Online surveys Internal communications Engagement activities Reputation survey Brand campaigns and activities Social media engagement Reputation survey Regular scheduled meetings Partnerships Regular scheduled meetings Ongoing dialogue Our business strategy and performance alcohol consumption Corporate reputation HEINEKEN Supplier Code Environment Community investment alcohol consumption Environment Corporate reputation Branding activities Sustainable development Code of Business Conduct Strategic direction and business performance Sustainable development Brand leadership Corporate reputation alcohol consumption alcohol consumption Local regulations and best practices Employment regulations and work practices HEINEKEN Asia Pacific Sustainability Report

11 The big picture Stakeholder dialogue What our stakeholders told us and how we responded Ongoing stakeholder dialogue in reputation research has identified challenges and opportunities for improvement. This is what we heard and did in response: Organise more targeted and better initiatives on responsible drinking Organise more localised CSR initiatives Provide further communications about CSR activities HEINEKEN s Alcohol Policy clearly states our position on responsible drinking. It includes targeted strategies designed to educate consumers and remind them of the effects and risks of irresponsible attitudes towards alcohol. Across the region, we have developed and implemented various responsible drinking partnerships and initiatives. See our case studies on responsible consumption in this report. We believe that our corporate social responsibility (CSR) efforts are the most effective when they are localised to cultures and needs. Examples of our efforts include providing scholarships for water research in Vietnam, fundraising for drought relief in New Zealand and training in responsible retail of alcohol in Indonesia. See our case studies on community investment and responsible consumption. We stepped up the communication of our CSR efforts internally and externally, in order to raise awareness and reach out to stakeholders and the public. Our responsible consumption efforts are featured on Drink-Savvy.com. See case studies such as the regional Have a Good Night Out campaign and 1 Minute Less For Million Smiles in Vietnam. HEINEKEN Asia Pacific Sustainability Report

12 The big picture Materiality matrix Materiality is about identifying the issues that matter most to our business and our stakeholders. We plot economic, social and environmental issues that are of most concern to our external stakeholders against those that pose risks or present opportunities to HEINEKEN Asia Pacific. Conducting a thorough materiality analysis not only helps us to identify issues the stakeholders want to see us cover in our sustainability reporting, but also helps us to decide where to focus our resources. Building on the insights developed from 2010 to 2012, the material issues which were deemed most important to our business and stakeholders were reassessed by Ernst & Young and the Regional Sustainability Steering Committee. These material issues were given significant consideration and management time during the year and they will continue to influence future action as we move forward on the roadmap to sustainability through Brewing a Better Future. Importance to stakeholders high low Marketing Staff Alcohol Responsibility Community Investment Government Regulations Product Safety & Hygiene Energy and Carbon Footprint Business Conduct and Employment Practices Importance to long-term business growth Safety in Workplace Management high HEINEKEN Asia Pacific Sustainability Report

13 The big picture Materiality matrix continued The following material issues, ranked in order, were identified as the most important to stakeholders and the business in RESPONSIBLE CONSUMPTION Actively promote the enjoyment of beer in moderation and collaborate with partners to address alcohol abuse 2. SAFETY IN WORKPLACE Cultivate a strong culture and management of Health and Safety to all employees from production, logistics and distribution, commerce and business services 3. WATER MANAGEMENT Drive water efficiency in producing every hectolitre of beer 4. ENERGY AND CARBON FOOTPRINT Drive energy efficiency in producing every hectolitre of beer to reduce carbon 5. SOURCING Encourage local sourcing of raw materials, use of best practices in sourcing 6. BUSINESS CONDUCT AND EMPLOYMENT PRACTICES Compliance to local employment laws and global best practices 7. STAFF ALCOHOL RESPONSIBILITY Encourage employees to lead by example on responsible alcohol consumption 8. COMMUNITY INVESTMENT Contributions to the communities in which we operate 9. GOVERNMENT REGULATIONS Compliance to the local alcohol regulations 10. RESPONSIBLE MARKETING Advertise brand in an accountable and positive manner 11. PRODUCT SAFETY & HYGIENE Produce a safe, clean and high quality product for consumption HEINEKEN Asia Pacific Sustainability Report

14 The big picture Sustainability governance Global Corporate Affairs Committee Chaired by CEO Supported by functional executive members (Supply Chain, Marketing & Sales, HR, Corporate Relations) Our governance model for Brewing a Better Future is managed at global, regional and local levels. In Asia Pacific, the Regional Sustainability Steering Committee is the highest body of governance that directs efforts in sustainability and reviews our progress. President Roland Pirmez chairs the Committee, which comprises the Regional Directors of the following business functions: Supply Chain, Procurement, Marketing and Sales, Corporate Relations and Human. The Regional Sustainability Working Committee advises and guides OpCos in implementing regional initiatives, outlined by Brewing a Better Future. Global Sustainable Development Team Regional Sustainability Steering Committee Chaired by President Supported by regional functional heads Global Functional Teams We set up governance at the local levels in Each OpCo, led by the General Manager (GM) or Managing Director (MD), set up an Operating Company Sustainability Committee. An overall Sustainability Coordinator was appointed to work closely with relevant business functions to integrate and implement systems and processes that achieve our global sustainability commitments. Every Committee engages with local stakeholders and reports its quarterly progress to the Regional Sustainability Steering Committee. Regional Sustainability Lead OpCo Sustainability Committee Chaired by GM/MD Supported by functional heads Regional Sustainability Working Committee OpCo Sustainability Coordinator OpCo Functional Teams To see the Global Governance model, click here. HEINEKEN Asia Pacific Sustainability Report

15 The big picture Sustainability governance continued Building sustainability into performance plans Sustainability has been a part of the performance plans of HEINEKEN s senior management since It is one of the five merit areas in which senior managers are assessed in the Annual Performance Appraisal. The basis for objective setting is the four focus areas and values and behaviours, which have been created as objectives for each OpCo and function. We plan to implement sustainability into our performance plans in 2014, starting with senior managers across the region. Measurement and reporting Brewing a Better Future is one of the six Company strategic priorities. It forms part of the Company Scorecard used for measuring progress on each of these priorities. Progress on these objectives is measured and reported as part of the quarterly business cycle and appraised once a year. This is done via a dedicated measurement system called Green Gauge. The system measures progress on each commitment across all HEINEKEN companies and allows us to assess delivery by commitment, OpCo, function, region and the Company. The Green Gauge system uses a simple traffic light approach to indicate performance in key areas and shows whether an objective is on target, near target or off target. These results are shared with OpCo GMs/MDs and the Regional Sustainabillity Steering Committee as standard agenda items. Scorecards are shared with senior management and the global committee every quarter. Due to the recent integration, Green Gauge reporting was only implemented in the last quarter of We conducted webinar training sessions across the region and on-site training workshops for OpCos in Singapore, Vietnam and Indonesia. In 2014, this system will support regional sustainability reporting across Asia Pacific. We will continue to implement Green Gauge reporting and monitor its progress. Training will be provided to support OpCos in producing local reports. We look forward to sharing our progress next year. HEINEKEN Asia Pacific Sustainability Report

16 The big picture Benchmark and achievements 1. HEINEKEN Asia Pacific won Best Sustainability Report at ACCA Singapore s Sustainability Reporting Awards The award recognises organisations in Singapore for their excellence in environmental, social and sustainability reporting. ACCA is the global body for professional accountants. 2. HEINEKEN Asia Pacific s Have A Good Night Out campaign won the Bronze award for CSR Excellence at the Marketing Excellence Awards in Singapore. The regional campaign advocated responsible drinking through a series of tongue-in-cheek lessons, which Asian consumers could relate to. 3. HEINEKEN in Indonesia, PT Multi Bintang Indonesia Tbk (Multi Bintang) received the Indonesian Employers of Choice Award 2013, organised by HAY Group in cooperation with SWA Magazine. 4. Asia Pacific Breweries (Singapore) Pte Ltd received the Excellence in Energy Management Award, a category of the Energy Efficiency National Partnership Awards The award recognises companies that have demonstrated a high level of commitment to excellence in energy management. APB Singapore was recognised for its goal to become a Green Brewer and current initiatives on process optimisation and waste reduction. 5. Our brewery in China, Hainan Asia Pacific Breweries Co Ltd, received the -Saving Advanced Unit (Corporate) award from the Affairs Department of the Hainan government. HEINEKEN Asia Pacific Sustainability Report

17 The big picture Report boundary MONGOLIA This sustainability report covers all subsidiaries and majority shareholding subsidiaries whose principal activities are brewing and/or distribution of beer. Also included in this report are majority shareholding joint-ventures and minority shareholding companies that are principally involved in brewing and/or distribution at locations where HEINEKEN Asia Pacific s key beer brands (Heineken, Tiger, Anchor, ABC Extra Stout and Bintang) have significant market presence, as these companies are considered to have significant impact on our business and efforts for sustainability. SRI LANKA THAILAND CAMBODIA SOUTH KOREA CHINA TAIWAN HONG KONG LAOS VIETNAM SINGAPORE JAPAN INDONESIA PAPUA NEW GUINEA SOLOMON ISLANDS NEW CALEDONIA NEW ZEALAND HEINEKEN Asia Pacific Sustainability Report

18 The big picture Report boundary continued We have included the Regional Office and the following operating companies in this report: Cambodia Cambodia Brewery Limited China Heineken-APB (China) Management Services Co Ltd Heineken-APB (Shanghai) Co Ltd Heineken Trading (Shanghai) Co Ltd Guangzhou Asia Pacific Brewery Co Ltd Hainan Asia Pacific Brewery Company Ltd Hong Kong Heineken Hong Kong Limited Indonesia PT Multi Bintang Indonesia Tbk PT Multi Bintang Indonesia Niaga Japan Heineken Kirin K.K. Laos Lao Asia Pacific Breweries Ltd Mongolia Mongolian Beverages Company Pte. Ltd. MCS Asia Pacific Brewery LLC MCS Distribution LLC New Caledonia Grande Brasserie de Nouvelle-Caledonia S.A. New Zealand DB Breweries Limited (excludes Barworks Group) DBG (Australia) Pty Limited Papua New Guinea South Pacific Brewery Limited Singapore Heineken Asia Pacific Pte. Ltd. Asia Pacific Breweries (Singapore) Pte Ltd Heineken Asia Pacific Export Pte Ltd Solomon Islands Solomon Breweries Limited South Korea Heineken Korea Inc. Sri Lanka Asia Pacific Brewery (Lanka) Ltd Taiwan Heineken Brouwerijen B.V. Taiwan branch Thailand Thai Asia Pacific Brewery Co Ltd TAP Trading Co Ltd Vietnam Vietnam Brewery Limited VBL Da Nang Limited VBL Tien Giang Limited VBL (Quang Nam) Ltd Vietnam Beer and Beverages Limited Asia Pacific Brewery (Hanoi) Limited Beer and Beverages International Ltd Our 2013 report excludes Guinness Anchor Berhad (GAB) in Malaysia, of which HEINEKEN Asia Pacific owns 25.5%. The company produces a separate Sustainability Report annually. The vodka distillery in Mongolia does not have available data at the time of reporting and is thus also excluded. APB Alliance Brewery Company Limited (APBABC) in Myanmar is similarly excluded as the new greenfield brewery is expected to be operational only by the end of Shanghai Asia Pacific Brewery Company (SAPB) is excluded as it was sold in April In addition, its impact on sustainability is not significant because prior to divesting our stake, we had already scaled down operations immensely. In contrast to last year s report, this report covers our export offices in South Korea, Hong Kong, Japan, and Taiwan. HEINEKEN Asia Pacific Sustainability Report

19 The big picture Report boundary continued Breweries in scope for environmental and operational safety reporting Our environmental and operational safety reporting only includes performance of our OpCos with a brewing production unit. The list of 22 breweries in scope is as follows: Asia Pacific Breweries (Singapore) Singapore Asia Pacific Brewery (Hanoi) Hanoi, Vietnam Vietnam Brewery Limited Ho Chi Minh City, Vietnam Da Nang, Vietnam Quang Nam, Vietnam Tien Giang, Vietnam Asia Pacific Breweries (Lanka) Mawathegama, Sri Lanka Cambodia Brewery Phnom Penh, Cambodia DB Breweries Auckland, New Zealand Mangatainoka, New Zealand Timaru, New Zealand Grande Brasserie de Nouvelle Caledonie Noumea, New Caledonia Guangzhou Asia Pacific Brewery Guangzhou, China Hainan Asia Pacific Brewery Haikou, China Lao Asia Pacific Breweries Vientiane, Laos MCS-Asia Pacific Brewery Ulaanbaatar, Mongolia PT Multi Bintang Indonesia Sampang Agung, Indonesia Tangerang, Indonesia Solomon Breweries Honiara, Solomon Islands South Pacific Brewery Lae, Papua New Guinea Port Moresby, Papua New Guinea Thai Asia Pacific Brewery Bangkok, Thailand HANOI VIENTIANE BANGKOK PHNOM PENH MAWATHEGAMA GUANGZHOU TANGERANG ULAANBAATAR HAIKOU DA NANG QUANG NAM HO CHI MINH CITY TIEN GIANG SINGAPORE SAMPANG AGUNG LAE PORT MORESBY AUCKLAND NOUMEA HONIARA MANGATAINOKA TIMARU HEINEKEN Asia Pacific Sustainability Report

20 The big picture About this report Reporting Period, Cycle and Standards Due to a change in the fiscal year end upon the acquisition by HEINEKEN, this report covers the reporting period 1 October 2012 to 31 December 2013 (fiscal year 2013). The previous sustainability report was published in January 2013 for fiscal year 2012 (1 October 2011 to 30 September 2012). Any reference made to 2013 or 2012 throughout our report relates to the fiscal year unless otherwise stated. All dollar values expressed are in Singapore dollars unless otherwise stated. We would like to highlight that Q (1 Oct 2012 to 31 Dec 2012) data is only available for environmental data in production units (See Appendix 4) and operational health and safety (See Appendix 6). In addition, there are restatements made to some fiscal year 2012 reported figures due to adjustments in HEINEKEN s reporting and measurement methods. These restatements are identified by double asterisks (**) in this report. This report is aligned with the Global Reporting Initiative (GRI) 3.1, achieving an application level B. We have included the GRI Reference Table in Appendix 1. Reliability, Completeness and Methodology The content of the report is based on the material aspects for both our Company and our stakeholders, and is directly linked to our Brewing a Better Future strategy, which outlines the four focus areas for our global 2020 commitments. We use an operational consolidation approach and have sought to include all relevant data for all our operations listed above. We have reported data to the best of our knowledge, in good faith and in accordance with agreed procedures, through HEINEKEN s robust global data collection systems such as the Business Comparison System (BCS), Green Gauge reporting system and Annual Sustainability Survey. As this is the first year we are implementing HEINEKEN s reporting systems, we recognise that our OpCos are at different levels of maturity with regard to implementing the various data collection processes. More training will be implemented to strengthen this reporting process. Assurance We rely on our internal processes to verify the accuracy of sustainability-related data. In addition, our sustainability performance is included in the Heineken N.V Sustainability Report, which had undergone external assurance by KPMG. For more information on our global reporting systems, reliability and accuracy of data, and global internal audit approach, see Heineken N.V Sustainability Report Appendix 2 Reporting Basis. HEINEKEN Asia Pacific Sustainability Report

21 ef ficiency The Big Balancing the needs of the community with our needs is at the heart of our approach to water usage. sources Emissions stewardship Wastewater treatment

22 Why this is important Global demand for water has doubled in the past 50 years and is expected to increase by another 40% by Where there is water scarcity, this may lead to increased competition for water among industries, agriculture, ecosystems and people. is central to our needs. We use it in our finished product beer is 95% water and throughout our supply chain. We understand the critical importance of the sustainable use of water and are committed to protect this precious resource. As one of the world s largest brewers and a signatory of the United Nations CEO Mandate, we recognise our responsibility in promoting the responsible use of water and strongly encourage our suppliers to do the same. Our approach to addressing water-related issues is described as Stewardship. We consider how all our water-related investments benefit the wider community, not just our breweries. is a critical resource for HEINEKEN. While we continue reducing water usage through efficiency improvements, we are collaborating with stakeholders to lead in our efforts towards water conservation and stewardship. Henricus van Dort, Senior Director, Regional Supply Chain HEINEKEN Asia Pacific Sustainability Report

23 Our global priorities HEINEKEN has established these focus areas regarding Stewardship Reduce the amount of water used in production Ensure the responsible discharge of brewery effluent 4 5 Protect our water resources in water-scarce and waterdistressed areas Reduce the amount of water used in the rest of our supply chain Compensate for the water that is not returned to the local water cycle through water balancing Our goals are to reduce specific water consumption by engaging in activities that allow us to avoid losses and to minimise our impact on the environment by balancing water usage in our operations, especially for water-scarce or water-distressed areas. In line with our global sustainability strategy Brewing a Better Future, we will continue to lead the industry in protecting our water resources. Read more about our global actions and results. HEINEKEN Asia Pacific Sustainability Report

24 Actions and results Our global commitment by 2015 What we have done globally in 2013 What we have done in Asia Pacific in 2013 Reduce our specific water consumption in the breweries to 3.9 hl/hl 1 consumption decreased to 4.1 hl/hl Without newly acquired sites efficiency would have been 4.0 hl/hl On track consumption decreased to 4.0 hl/hl 100% of our production units in water-scarce and distressed areas 2 will have a Source Protection Plan Ten of our production units (43%) have drafted a Source Protection Plan On track 2 of our 3 identified production units 3 have completed a Source Vulnerability Assessment On track More to do Not started yet Not Applicable 1 Global baseline sites identified 3 In Asia Pacific, we identified 3 production units in water-scarce areas, namely Sampang Agung (Indonesia), Tangerang (Indonesia) and Bangkok (Thailand) HEINEKEN Asia Pacific Sustainability Report

25 water consumption Specific water consumption at breweries & soft drink plants hl/hl (beer + soft drinks) Commitment to Brewing a Better Future 25% improvement by HEINEKEN Group actual Actual Agung, Timaru and Ulaanbaatar, showed a decrease of more than 5% in specific water consumption. Specific water consumption showed a 9.1% decrease, from 4.4 hl/hl in 2012 to 4.0 hl/hl in At 4.0 hl/hl, our regional specific water consumption performed better than the Group, which achieved an average of 4.1 hl/hl. In 2013, there was a reduction in water consumption in 14 sites compared to Nine breweries, Da Nang, Guangzhou, Hanoi, Honiara, Ho Chi Minh City, Mawathagama, Sampang 1 Asia Pacific baseline 2008 The largest improvements were in Da Nang at 24.3% and Ho Chi Minh City at 21.2%. The improvement in Da Nang is partially attributed to the increased production in 2013 as well as the reuse of hot water for housekeeping activities. In Ho Chi Minh City, Total Productive Management (TPM) was implemented, which led to better management of daily water usage monitoring. Employees were more proactive to detect and fix leaks. However, eight breweries, Haikou, Lae, Phnom Penh, Port Moresby, Tangerang, Tien Giang, Tuas and Vientiane, showed an increase in specific water consumption compared to 2012, ranging from 0.1% to 36.4%. Moving forward, we will minimise leakages, optimise cleaning frequency, raise awareness on water usage in shop floor cleaning and invest in water efficient equipment. HEINEKEN Asia Pacific Sustainability Report

26 water consumption continued Specific water consumption Improvement per site in 2013 compared to % -36.4% Da Nang (Vietnam) Ho Chi Minh City (Vietnam) Mawathagama (Sri Lanka) Ulaanbaatar (Mongolia) Hanoi (Vietnam) Timaru (New Zealand) Guangzhou (China) Sampang Agung (Indonesia) Honiara (Solomon Islands) Bangkok (Thailand) Quang Nam (Vietnam) Mangatainoka (New Zealand) Auckland (New Zealand) Noumea (New Caledonia) -0.1% -0.2% -2.1% -3.3% -5.6% -11.5% 24.3% 21.2% 16.8% 14.2% 14.2% 10.8% 8.0% 7.0% 5.4% 3.7% 3.1% 2.8% 1.8% 1.8% Lae (Papua New Guinea) Tangerang (Indonesia) Haikou (China) Phnom Penh (Cambodia) Tuas (Singapore) Port Moresby (Papua New Guinea) Tien Giang (Vietnam) Vientiane (Laos) HEINEKEN Asia Pacific Sustainability Report

27 sources sources at breweries & soft drink plants Ground water 57% Municipal water supply 42% Surface water (river/lake) 1% Tangerang, Indonesia Our breweries obtain our water primarily from groundwater (57%). Municipal water supply accounts for 42% of our total water consumption while surface water accounts for 1%. HEINEKEN Asia Pacific Sustainability Report

28 Wastewater management Such improvements were a result of proper environmental waste treatment and management, periodic auditing and training of our employees. At our Tangerang brewery, the decrease in COD was due to an improvement at our wastewater treatment plant. We improved conditions for the conversion of organic matter to biogas, which in turn reduced COD levels. Operational and maintenance standards were also enforced in the monitoring of sludge conditions. In Honiara, our brewery replaced its chemicals for Cleaning in Place (CIP) with chemicals that have been approved by HEINEKEN. In Mawathagama, we increased the efficiency of our Upflow Anaerobic Sludge Blanket (UASB) reactor to decrease COD levels. Our breweries at Da Nang, Hanoi and Sampang Agung reported increases in effluent organic load discharged to surface water of 16 tons, 15 tons and 3 tons respectively. This is a result of increased production volume at these breweries. Ho Chi Minh City, Vietnam In 2013, our effluent organic load discharged to surface water decreased by 35.1% at 1.20 ktons, as compared to 1.85 ktons in Our breweries at Tangerang, Honiara and Mawathagama were the main contributors to the decrease in Chemical Oxygen Demand (COD) discharged to surface water after treatment. They reduced 556 tons, 89 tons and 10 tons of discharge respectively. Effluent organic load discharged to surface water kton COD discharged by breweries & soft drink plants HEINEKEN Asia Pacific Sustainability Report

29 our water resources in water scarce areas Some of our breweries operate in parts of the world where water is scarce. We recognise and understand that we need to strike a balance between fulfilling the operational requirements of our breweries and providing for the water needs of our communities. HEINEKEN has identified 23 breweries worldwide as Priority One sites. These sites are rated high on water-related risks as they are located in water-distressed areas. Our Stewardship programme consists of two steps and is described in detail below. 1 Source Vulnerability Assessments (SVAs) 2 Source Protection Programmes (SWPP) Our Sustainability teams at each Priority One site work with water resource experts to determine vulnerability of the area in water-related risks. After reviewing all possible sources of water for the brewery, potential water-related risks, such as drought, are listed and ranked according to likelihood of occurrence and magnitude of impact. Based on our findings from SVAs, we work closely with key stakeholders and water experts to complete a SWPP. This comprises a step-by-step method for evaluating and implementing measures to redress water balance. In Asia Pacific, we have identified three Priority One sites. The programme is ongoing at two breweries in Indonesia and implementation is expected in Thailand in By 2015, each Priority One site should have a SWPP in place with progress made on redressing water balance. Progress of SVAs and SWPP at Priority One sites: Indonesia Thailand No. of facilities 2 1 Locations Jakarta, Sampang Agung Bangkok Workshops Planned in 2014 Planned in 2014 Training Planned in 2014 Planned in 2014 Status SVA Started Planned in 2014 SWPP Not yet started Not yet started SWPP endorsed 2015 Not yet started Read more about our global Stewardship case studies. HEINEKEN Asia Pacific Sustainability Report

30 Case study Thailand Turning wastewater into fertiliser TAPB CONVERTS WASTEWATER SLUDGE INTO FERTILISER GAVE FERTILISER TO 10 LOCAL FARMING FAMILIES FARMERS USE FERTILISER TO GROW CROPS In 2012, Thai Asia Pacific Brewery (TAPB) embarked on a pilot project to recycle its wastewater sludge, a by-product of treating water after it has been used in brewing. Wastewater sludge is considered non-recyclable industrial waste. It is usually disposed of in landfills, which is a costly solution that is not sustainable. We carried out research in partnership with the Laem Laem Phak Bia Environmental Research and Development Unit and the College of Environmental Studies at Kasetsart University, one of the leading academic faculties in agriculture in Thailand. Keeping local regulatory standards in mind, World Green Plus, a certified transporter, was engaged to transport the wastewater sludge from the brewery to the university. The research revealed that the sludge contains nutrients that are beneficial for the growth of certain plants. By turning wastewater sludge into natural and low-cost fertiliser, we reduce our environmental impact, save on disposal costs and create value for community farmers. In September 2012, we launched the pilot project to test the safety and effectiveness of using wastewater sludge fertiliser in selected fields. The 12-month project involved ten local farming families around the brewery in Ratniyom and Saiyai. The Kasetsart research team provided training and gave advice to farmers, in addition to evaluating the progress of the project and giving constant feedback. The results are very satisfactory and show an improvement of crop yield, particularly in vegetables such as marigold and sweet basil. Between August and September 2013, the fertiliser was successfully developed and produced no negative results. We target to recycle 100% of our wastewater sludge and reduce disposal costs by 30% in HEINEKEN Asia Pacific Sustainability Report

31 Emissions In 2013, we made good progress in reducing our. Our focus is on reducing the total carbon footprint of our products across the value chain.

32 Emissions Why this is important The global reduction in carbon is improving but not enough. It is recommended that should reach a maximum of just 44 gigatonnes by 2020, eventually falling to 22 gigatonnes by If immediate action is not taken to reduce carbon, global temperatures will rise by more than 2 degrees within the next 30 years, which will trigger damaging sea levels, food insecurity and extreme weather changes. This in turn impacts the availability and cost of raw materials and other resources. As a leading global company, we believe it is our responsibility to play an active role in reducing across the value chain, from barley to bar. The choices we make today will affect the amount of greenhouse gases we release into the atmosphere. Thus, we have set ambitious targets within the brewing, cooling and distribution parts of our business. In Asia Pacific, energy optimisation is a key area of focus. We invest in energy efficient equipment and tap on the use of renewable energy such as biogas and solar to reduce. energy usage, investing in energy efficient equipment and renewable energy is key to reduce to protect our environment. Henricus van Dort, Senior Director, Regional Supply Chain 1 Source from United Nations Environment Programme (UNEP) Emissions Gap Report 2013 HEINEKEN Asia Pacific Sustainability Report

33 Emissions Our global priorities Our priority by 2020 is to reduce our : 1 40% lower in 2 50% lower 3 production of our fridges We use energy for heating and power throughout our production processes from brewing to packaging. We are cutting by implementing good practices at each stage, reducing losses, optimising equipment and making renewable energy sources such as solar and wind power part of our energy mix. We are working with suppliers to develop bestin-class draught equipment technology and making sure that all our fridges comply with our global fridge policy. 20% lower from distribution in Europe and the Americas We are reducing kilometres driven, improving fuel efficiency and switching to other modes of transport. Read more about our global actions and results on reducing. HEINEKEN Asia Pacific Sustainability Report

34 Emissions Actions and results Our global commitment by 2015 What we have done globally in 2013 What we have done in Asia Pacific in 2013 Reduce in production by 27% 1 (equivalent to -eq/hl) reduced from 8.4 kg eq/hl in 2012 to 7.7 kg eq/hl in This is a reduction of 26% compared with the global baseline year 2008 (without newly acquired sites, reduction would have been 7.3 kg eq/hl, which is a reduction of 30%) On track reduced from 11.1kg eq/hl in 2012 to 10.7kg eq/hl in Reduce the of our fridges by 42% 3 99% of the 116,000 fridges that HEINEKEN purchased in 2013 were green. The average reduction of has improved from 38% to 40% in 2013, compared with the global baseline year 2010 More to do In 2014, we will develop a regional supplier list for the implementation of Green Fridge in the Asia Pacific region Reduce the from distribution by 10% in Europe and the Americas Out of 23 operations in scope, 21 operations have now validated results. 14 performed better than planned for 2013 Not applicable to Asia Pacific On track More to do Not started yet Not Applicable 1 Global baseline Asia Pacific baseline 2008 for direct & indirect is 15.5 kg eq/hl 3 Global baseline 2010 HEINEKEN Asia Pacific Sustainability Report

35 Emissions HEINEKEN s carbon footprint HEINEKEN has developed a comprehensive carbon footprint model that calculates the greenhouse gas emission of beverage production, in order to better identify areas for improvement in our value chain. In 2012, the carbon footprint of HEINEKEN s 24 largest OpCos were calculated based on 2011 data. These OpCos represented 92% of the Company s volume at that time. 1 We aim to conduct a pilot workshop for employees from five breweries in Asia Pacific on HEINEKEN S carbon footprint model next year. The breweries involved are Guangzhou, Haikou, Jakarta, Sampang Agung and Ho Chi Minh City. Global results for our carbon footprint are updated every three years and our regional performance will be included in the next global update, which is planned for the 2015 Sustainability Report. 10% 28% 8% 6% 17% Agriculture Malting and adjuncts Beverage production Packaging material production Distribution Cooling 31% 1 The 2012 carbon footprint study was conducted prior to HEINEKEN s aquisition of APB. The 24 largest OpCos were from Europe, Africa and the Americas. More details on our carbon footprint can be found in the Heineken N.V Sustainability Report. HEINEKEN Asia Pacific Sustainability Report

36 Emissions in production changes in methodology at IEA, the grid efficiency factor increased for several countries in Asia Pacific. This has resulted in the increase of our regional indirect. However, specific, direct and indirect, decreased by 4.5% from 11.1 kg eq/hl in 2012 to 10.6 kg eq/hl. Despite this improvement, specific total for Asia Pacific is higher than the Group average of 7.7 kg eq/hl. Specific direct and indirect at breweries & soft drink plants kg eq/hl (beer + soft drink + cider) Commitment to Brewing a Better Future 40% reduction by We emitted less operationally in 2013 than in Direct are that result from energy generated on site while indirect result from purchased energy, primarily electricity. Compared to 2012, our absolute direct decreased by 2.2% while indirect increased by 15.2%. This resulted in an overall 5.9% increase in absolute in Indirect pertaining to electricity are determined by the grid efficiency factor, which is based on methods of measurement set by the International Energy Agency (IEA). Due to HEINEKEN Group actual Actual We are aware that more needs to be done to achieve our targets. We are currently aligning our operations with HEINEKEN s carbon footprint model while exploring options for harnessing renewable energy in our operational sites, improving energy efficiency in our operations and replacing our existing fridges with green models. 1 Asia Pacific baseline 2008 HEINEKEN Asia Pacific Sustainability Report

37 Emissions energy consumption In 2013, we changed our definition of total specific energy consumption in alignment with Group reporting. We have adopted the more accurate and industry-recognised definition of total specific energy consumption: thermal energy (MJ/hl) times electrical energy (kwh/hl). Beverage production accounts for most of our energy consumption, while internal logistics on site take up a small proportion. As targets had already been set, energy used in logistics were excluded from our calculations. As our focus is on using biogas generated on site as a replacement for fossil fuels, we will only report purchased (fossil) energy used in beverage production. This year, our total specific energy consumption decreased from MJ/hl in 2012 to 107 MJ/hl in At 107 MJ/hl, our regional specific energy consumption is higher than the Group average of 103 MJ/hl. Specific total energy consumption at breweries & soft drink plants MJ/hl (beer + soft drink) HEINEKEN Group actual Actual In 2014, we will focus on investing in energy efficient equipment, increasing operational efficiency and including renewable sources into our energy mix. See our case study. Thermal energy In 2013, specific thermal energy consumption decreased by 8.7% from 80.5 MJ/hl in 2012 to 73.5 MJ/hl in At 73.5 MJ/hl, our regional specific thermal energy consumption is higher than the Group average. Specific thermal energy consumption at breweries & soft drink plants MJ/hl (beer + soft drink) HEINEKEN Group actual Actual Of all our breweries, 14 sites showed an improvement in specific thermal energy consumption, out of which nine breweries, Da Nang, Guangzhou, Hanoi, Ho Chi Minh City, Honiara, Mawathagama, Phnom Penh, Quang Nam and Timaru, reported improvements of more than 5%. Our brewery in Mawathagama contributed most to reduced energy consumption, due to improved boiler efficiency as a result of better control over processes. Da Nang is another brewery that showed significant improvement due to our investment in energy optimisation. More details can be found in our case study. However, eight sites, Lae, Mangatainoka, Noumea, Port Moresby, Tien Giang, Tuas, Ulaanbaatar and Vientiane, showed an increase in specific thermal energy consumption ranging from 4.3% to 29.4% compared to Moving forward, we will fix steam leakages, improve maintenance of plates for heat transfers and invest in more energy efficient equipment HEINEKEN Asia Pacific Sustainability Report

38 Emissions energy consumption continued Specific thermal energy consumption Improvement per site in 2013 compared to 2012 (excluding biogas & logistics) -29.4% Mawathagama (Sri Lanka) Da Nang (Vietnam) Timaru (New Zealand) Honiara (Solomon Islands) Ho Chi Minh City (Vietnam) Hanoi (Vietnam) Quang Nam (Vietnam) Guangzhou (China) Phnom Penh (Cambodia) Bangkok (Thailand) Sampang Agung (Indonesia) Haikou (China) Auckland (New Zealand) Tangerang (Indonesia) -4.3% -6.1% -7.1% -8.1% -11.6% -12.4% -16.2% 29.4% 26.5% 26.4% 25.9% 24.1% 19.6% 12.1% 7.2% 6.3% 3.8% 2.4% 2.3% 2.0% 1.5% Lae (Papua New Guinea) Mangatainoka (New Zealand) Ulaanbaatar (Mongolia) Tuas (Singapore) Port Moresby (Papua New Guinea) Vientiane (Laos) Tien Giang (Vietnam) Noumea (New Caledonia) HEINEKEN Asia Pacific Sustainability Report

39 Emissions energy consumption continued Fuel sources In Asia Pacific, we use primarily liquid fuels (64%) such as diesel, fuel oil and gas oil to produce thermal energy. Gaseous fuels such as natural gas, propane and Liquefied Petroleum Gas (LPG) account for 30% of all fuels used. Coal accounts for another 5% of fuels used. The use of biogas increased in 2013, particularly at our brewery in Ho Chi Minh City, where it accounted for 1% of all fuels used. Moving forward, we aim to use a higher percentage of biogas at more breweries with biogas capacity instead of flaring. Types of fuel used Electricity consumption Specific electricity consumption decreased by 4.1% from 9.7 kwh/hl in 2012 to 9.3 kwh/hl in At 9.3 kwh/hl, the regional specific electricity consumption is higher than the Group average of 8.4 kwh/hl. Specific electric consumption at breweries & soft drink plants kwh/hl (beer + soft drinks) HEINEKEN Group actual Actual Liquids fuels 64% (diesel, fuel oil, gasoil, kerosene) Gaseous fuels 30% (LPG, natural gas, propane) Coal 5% Biogas & Biomass 1% 14 sites showed positive improvements in specific electricity consumption, with eight breweries reporting improvements of more than 5%, in Da Nang, Guangzhou, Hanoi, Ho Chi Minh City, Honiara, Mangatainoka, Mawathagama, Quang Nam. At our Da Nang brewery, the significant decrease in specific electrical consumption in 2013 is due to increased production volume and the installation of a new cooling plant with higher energy efficiency. In Mawathagama, we increased energy efficiency at our wastewater treatment plant aerators. Eight sites, Lae, Noumea, Phnom Penh, Port Moresby, Tangerang, Tien Giang, Tuas and Vientiane, showed an increase in specific electricity consumption compared to 2012 ranging from 0.1% to 26.2%. Moving forward, we will fix air leakages, optimise air and cooling systems and invest in energy efficient equipment. HEINEKEN Asia Pacific Sustainability Report

40 Emissions energy consumption continued Specific electricity consumption Improvement per site in 2013 compared to 2012 Da Nang (Vietnam) Mawathagama (Sri Lanka) Hanoi (Vietnam) Ho Chi Minh City (Vietnam) Quang Nam (Vietnam) Honiara (Solomon Islands) Mangatainoka (New Zealand) Guangzhou (China) Ulaanbaatar (Mongolia) Haikou (China) Timaru (New Zealand) Sampang Agung (Indonesia) Auckland (New Zealand) Bangkok (Thailand) -0.1% -0.1% -1.0% -6.4% -9.7% -14.5% -22.3% -26.2% 27.5% 13.4% 11.9% 7.5% 7.4% 6.3% 6.2% 5.5% 4.8% 3.7% 2.4% 1.7% 1.7% 1.4% Tangerang (Indonesia) Tuas (Singapore) Phnom Penh (Cambodia) Lae (Papua New Guinea) Vientiane (Laos) Noumea (New Caledonia) Port Moresby (Papua New Guinea) Tien Giang (Vietnam) HEINEKEN Asia Pacific Sustainability Report

41 Emissions Making renewables part of our energy mix We are constantly looking for ways to improve our environmental performance. Taking the lead from HEINEKEN in Austria, which has embarked on the use of solar energy to develop Göss Brewery as the leading neutral brewery in Europe, Asia Pacific is inspired to use green solutions. In 2013, we conducted a study on the feasibility of solar leasing at our brewery in Singapore. It is estimated that a solar system will help us save 1,200 tonnes of carbon annually. It will also provide additional insulation against heat transmission in the plant. Research has shown that roof-mounted solar panels have a cooling effect on the building, which allows for energy savings and a more comfortable working environment. In spite of the advantages in energy and cost savings, we are aware of the challenges such as the storage of solar power. Battery banks are often large and heavy, taking up space and requiring occasional replacement. Based on our study, the solution is to design a solar system according to the average base load (minimum level of demand on an electricity supply system), such that the brewery will consume all the power generated by the solar system, allowing us to avoid the challenge of storage. In 2014, we will launch the pilot project on solar energy at our brewery in Singapore. HEINEKEN Asia Pacific Sustainability Report

42 Emissions emission from fridges Our consumers enjoy ice-cold beer. However, fridges with ultra-cooling features consume more energy and electricity. Accordingly to HEINEKEN s carbon footprint results in 2012, cooling is the second largest contributor to our total carbon footprint. To reduce the environmental impact of our fridges, HEINEKEN put in place a Global Fridge Policy in This policy guides the installation of new fridges and the replacement of existing fridges with green models. A green fridge saves up to 45% energy compared to a standard fridge and has the following features: Use of a hydrocarbon refridgerant LED illumination An energy management system, wherever legally and technically possible Energy-efficient fans In 2013, we aligned our green cooling commitment with the Global Fridge Policy. Next year, we plan to develop a regional supplier list as our first step to implement green fridges in our region. HEINEKEN Asia Pacific Sustainability Report

43 Emissions Waste and environmental compliance Waste We dispose our non-recycled industrial waste according to local regulations. In 2013, our production of absolute non-recycled waste increased by 17.5% from 9,279 tons in 2012 to 10,900 tons in Specific non-recycled industrial waste increased by 5% from 0.6 kg/hl in 2012 to 0.63 kg/hl in At this figure, the regional specific non-recycled industrial waste production is higher than the Group average of 0.54 kg/hl. Environmental compliance We are pleased to report that there were no justified environmental complaints, accidents or fines received due to non-compliance in We will continue to comply with environmental laws and regulations. Environmental complaints Number of complaints The main contributor to the increase is our brewery in Bangkok, where the contractor employed for waste handling was unable to recycle spent kieselguhr 1 in 2013 though it was possible in Specific non-recycled industrial waste production at breweries & soft drinks plant kg/hl (beer + soft drinks) Despite the overall increase in specific non-recycled industrial waste production, eight sites showed a decrease of more than 10% Hanoi, Honiara, Lae, Mangatainoka, Mawathagama, Tien Giang, Timaru and Vientiane. The most significant improvement was in Mawathagama, where our brewery recycled all industrial waste produced in Hanoi also showed improvement in this area through recycling surplus yeast and spent kieselguhr Environmental complaints Number of accidents Kieselguhr is a sand-like substance used as a filter to turn turbid beer into clear beer HEINEKEN Asia Pacific Sustainability Report

44 Emissions Case study Vietnam Investing in energy optimisation At Vietnam Brewery Limited (VBL), we are committed to using lesser energy to brew more beers. Due to rapid growth of our business and to meet the increased demand from customers, we built a new extension at our Da Nang site in We were mindful of sustainability in the design of our extension and installation of equipment. Our investments included an energy recovery system, which comprises a vapour condenser, energy storage tank and wort pre-heater, reducing the energy required in the heating of wort 1. We upgraded to high-efficiency electric motors in our compressed air plant and installed larger evaporative condensers at our cooling plant. The latter helps in the reduction of condensation temperatures, increasing the efficiency of the ammonia compressor. Pumps and fans in both plants are equipped with variable speed drives for more control over the process, which contributed to a reduction in energy consumption. We expect improvements in energy consumption rates in 2014: Before optimisation After optimisation % improvement Thermal energy consumption MJ/hl 58.3 MJ/hl 49% Electricity consumption 11.2 kwh/hl 7.05 kwh/hl 37% consumption 4.95 hl/hl 2.93 hl/hl 41% Da Nang s extension: new canning line runs at 90,000 cans per hour. Moving forward, we have formally included sustainability considerations as assessment criteria in all our project plan proposals. 1 Wort is the liquid extracted from the mashing process during the brewing process. It contains the sugars that will be fermented by the brewing yeast to produce alcohol. HEINEKEN Asia Pacific Sustainability Report

45 Supplier code The Big Emissions HEINEKEN wants to operate in a way that improves the quality of life for local individuals and communities, helps the environment and ensures a consistent supply of our raw materials. Local families Raw materials Packaging

46 sustainably Why this is important As global demand for food continues to grow, a key issue facing global agriculture is how to increase productivity in a more sustainable way in order to meet this rising demand. We want to conduct our business in a way that improves the quality of life for local communities and individuals, ensures a sustainable supply of our raw materials and reduces our environmental footprint. We recognise that much of our impact on the environment and resources lies indirectly with our suppliers, who are key to achieving our global sourcing commitments. Our Supplier Code thus guides our suppliers in implementing responsible sourcing practices throughout our value chain. The road to sustainability involves the entire supply chain, from sourcing, distribution to point of purchase. sustainably not only benefits the customer, but also the suppliers and the local communities. It ensures long-term sustainable success for all stakeholders. Henricus van Dort, Senior Director, Regional Supply Chain HEINEKEN Asia Pacific Sustainability Report

47 sustainably Our global priorities Our 2020 commitments to source sustainably are: % of our main raw materials to be supplied from sustainable sources By sourcing sustainably we help to raise farming standards and support farmers all over the world in adopting improved environmental and social standards. We have adopted the Sustainable Agriculture Initiative (SAI) principles that will be the basis for implementing sustainable practices with our agricultural suppliers. 60% of agricultural raw materials used in Africa to be locally sourced within the continent Our presence as a large buyer of crops and a manufacturer and brewer in Africa has positive economic effects on local communities. Continuing our efforts to improve the livelihoods of farmers and their families in the region through sourcing projects remains a high priority. Ongoing compliance with our Supplier Code Procedures The HEINEKEN Supplier Code, applicable to all our suppliers, provides clear guidelines for how we expect them to act in the areas of Integrity and Business Conduct, Human Rights, and the Environment. As a global market leader, we use our influence to encourage suppliers to adhere to these guidelines and to request their suppliers to do the same, supporting us in making a positive contribution to society. HEINEKEN Asia Pacific Sustainability Report

48 sustainably Actions and results Our global commitment by 2015 Aim for sustainable sourcing of raw materials for crop year 2015: 20% (barley), 40% (hops), 60% (bittersweet apples for cider) 1 What we have done globally in 2013 Sustainable sourcing procedures approved and being rolled out with key suppliers Started development of reporting system to monitor progress on commitments, which we will pilot with suppliers in 2014 What we have done in Asia Pacific in 2013 Not applicable to Asia Pacific In 2012, the APB Code of Conduct for Vendors was introduced. It required all vendors to satisfy minimum standard working conditions in accordance with local laws, on child labour, workplace health & safety and working hours. That year, key suppliers were informed of the Code. Several key suppliers adopted the Code, sharing our values and commitments towards responsible procurement practices. 50% 2 of agricultural raw materials used in Africa to be locally sourced 3 within the continent Four-step Supplier Code Procedures operational within all OpCos Increased our local sourcing from 45% in to approximately 46% Started three new Public-Private Partnership projects in Ethiopia, Rwanda and Sierra Leone Appointed a Local Director to increase focus and coordination between projects Four-step Supplier Code Procedure operational within all Operating Companies Not applicable to Asia Pacific More to do Completed legal review of APB Code of Conduct for Vendors and HEINEKEN Supplier Code Developed a regional plan to roll out Step 1 of the Supplier Code Procedures, starting with key vendors When we joined HEINEKEN in 2013, our priority was to implement the HEINEKEN Supplier Code throughout our value chain as part of our global sustainability strategy. To achieve this, we will leverage our position as the world s third largest brewer and a global market leader to influence and encourage our suppliers in adopting the HEINEKEN Supplier Code. We want to work with suppliers in implementing the right practices and sharing our values. On track More to do Not started yet Not Applicable 1 Based upon global volume 2 Based upon global tonnage 3 With local sourcing we refer to sourcing within the region of Africa & Middle East 4 The Heineken N.V. Sustainability Report 2012 stated 48% local sourcing. This has been revised to reflect two definition changes; (i) hops and grapes have been added for the first time, (ii) only agricultural raw materials cultivated in Africa are included (i.e. raw materials, which are imported and processed locally before entering the HEINEKEN supply chain are excluded) HEINEKEN Asia Pacific Sustainability Report

49 sustainably Supplier code governance The HEINEKEN Supplier Code is a four-step procedure that outlines a commitment to key elements in Integrity, Code of Business Conduct, Human Rights and the Environment. We expect our suppliers to respect and abide by these guidelines. The Code applies to all our suppliers of product-related and non-product related products and services. We recognise that the implementation of the Supplier Code across all OpCos will take time. In 2013, we conducted a spend analysis at local levels with OpCos to first identify our active suppliers, which was a key objective that year. Next, we informed our existing suppliers of our adoption of the Supplier Code. Global and Regional Legal reviewed the APB Vendor Code against the HEINEKEN Supplier Code. The conclusion was that the APB Vendor Code was within HEINEKEN s global supplier guidelines. As such, suppliers who had already signed our APB Vendor Code in 2013 did not have to sign the HEINEKEN Supplier Code. This year, no contracts were terminated due to suppliers non-compliance with the APB Vendor Code. In 2014, we will focus on implementing Step 1 of HEINEKEN s Supplier Code governance. We are committed to have at least half of our active regional and local suppliers sign the Supplier Code and we aim to commence monitoring through our Contract Lifecycle Management (CLM) by We will report our results in the next reporting year (2015). We will also formulate a regional strategic plan to implement Step 2 to 4 of the HEINEKEN Supplier Code governance framework. HEINEKEN Asia Pacific Sustainability Report

50 sustainably Supplier code governance continued Step 1: Signing Step 2: Supplier Risk Analysis Step 3: Supplier Monitoring Step 4: Audit Plan Supplier Definition Category risk CSR questionnaire Site selection Signing of Supplier Code by Supplier Supplier specific risk 360 supporting evidence Site audit Inter-industry benchmarking Storage and monitoring progress in database Identification of potential high risk suppliers Follow up on non-compliance Supplier scorecard Find out more details of each step of the Supplier Code Governance. HEINEKEN Asia Pacific Sustainability Report

51 Enjoy responsibly The Big Emissions Partnerships Serving responsibly As one of the world s leading brewers, we take our responsibility seriously to establish the positive role of beer in society. Our goal is to work with and through our brands, partners and industry to make moderate responsible consumption aspirational. Stafff responsibility Don t drink & drive

52 responsible consumption Why this is important Beer is a natural product enjoyed by hundreds of millions of people around the world. HEINEKEN has a long history of encouraging responsible consumption and we take this role seriously. Our goal is to make moderate, responsible consumption aspirational. We know that when brands communicate directly, the message resonates more with consumers. Majority of people enjoy our products responsibly but there are still many people who don t. Harmful drinking is damaging not just to individuals and the people around them, but also to our industry, society and our reputation. We acknowledge that alcohol abuse is a complex societal issue. There is no one-sizefits-all approach and we must take into account cultural differences in attitudes towards alcohol. It requires a concerted approach from multiple players, not just producers. Governments, NGOs, consumers, local police and retailers all have an important role to play in advocating responsible consumption. We continuously invest in responsible marketing practices, brand communication and green events to energise and inspire our consumers. Cyril Charzat, Senior Director, Regional Marketing & Sales HEINEKEN Asia Pacific Sustainability Report

53 responsible consumption Our global priorities Globally, HEINEKEN has identified the following three focus areas to promote responsible drinking effectively: 1 responsible 2 Building partnerships consumption through in each of our markets 3 our brands Our flagship Heineken brand is instantly recognised all over the world and our local brands are often trusted leaders in their respective regions. Through the power and reach of our brands, we can bring a message that responsible consumption is aspirational directly to our consumers. We work closely together with local governments, NGOs and specialists to encourage responsible consumption and reduce harm caused by abuses such as under age drinking or drinking and driving. Our aim is to have a measurable partnership that addresses alcohol abuse in every market. Taking action at industry level Together with 12 other global producers of beer, wine and spirits, we have committed to action in five key areas: underage drinking, marketing codes of practices, consumer information and product innovation, drinkdriving and retailer support. These collective commitments are aligned with the World Health Organisation s Global Strategy to Reduce the Harmful Use of Alcohol. In our 2012 APB Sustainability Report, we defined our three-pronged commitment to promote responsible consumption as self-regulation among our employees, active consumer engagement and establishing proactive partnerships with a diverse group of stakeholders, ranging from policy makers to NGOs. In 2013, the Asia Pacific region realigned our previous APB approach to HEINEKEN s three-tiered strategy to advocate responsible consumption. We worked with and through our brands and markets to achieve this in At industry level, we actively engaged policy makers, trade associations and industry groups such as ICAP Vietnam on Global Action on Harmful Drinking. HEINEKEN Asia Pacific Sustainability Report

54 responsible consumption Actions and results Our global commitment by 2015 What we have done globally in 2013 What we have done in Asia Pacific in 2013 We commit to invest a minimum of 10% of our media spend for Heineken in supporting our dedicated responsible consumption campaign in at least 50% of our market volume 1 Developed Dance More, Drink Slow campaign throughout the year, officially launched in January Media investment commitment included in 2014 budget On track Markets in scope (China, Taiwan and Vietnam) conducted an assessment for the Heineken brand and set aside a minimum 10% of media investment to implement a Heineken responsible consumption campaign in 2014 New Zealand and Singapore voluntarily invested and activated Sunrise campaign in their markets Every market in scope 2 has a partnership to address alcoholrelated harm. All partnerships meet HEINEKEN s seven-point partnership criteria Out of 40 markets in scope, 36 currently have at least one partnership. From 2013, we have begun actively assessing the impact of these partnerships on alcohol-related harm and are currently working with markets and partners to improve measurement and reporting of their projects On track In 2013, we conducted a baseline assessment. 11 out of 17 countries have at least one partnership. In addition, we have started assessing the impact of these partnerships through working with markets and partners to improve project measurement and reporting Precise goals for 2015 to be decided in conjunction with industry via ICAP and GAPG organizations Global commitment KPIs will be developed and implemented. In each of the action areas, preparatory work was done in More details may be found in the Heineken N.V. Sustainability Report 2013 Not applicable to Asia Pacific On track More to do Not started yet Not Applicable 1 Market 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 religious) restrictions on alcohol advertising 2 Out of scope (not a minimum requirement) are Regional Offices, Islamic markets and small export markets where we do not have staff or a presence Read more about our progress on global industry commitments. HEINEKEN Asia Pacific Sustainability Report

55 responsible consumption Actions and results continued Making responsible consumption aspirational through the Heineken brand Our Heineken brand is instantly recognised all over the world and is enjoyed by consumers in more than 170 countries. We ride on the global influence of our international premium brand by initiating dedicated brand-related activities in support of responsible consumption. consumption is one of our key focus areas within our sustainability strategy, Brewing a Better Future. In 2013, HEINEKEN extended the Sunrise campaign for the third year running. The commercial advocates the message that Sunrise belongs to moderate drinkers and is fully integrated into the Heineken brand s global strategy for responsible drinking. It aims to change our consumers drinking habits by spreading the powerful message that there are no limits when you know your limits. Our markets in New Zealand and Singapore invested in and activated the Sunrise campaign during the festive Christmas and New Year seasons to engage their consumers. In late 2013, HEINEKEN built on the Sunrise movement and created the Dance More, Drink Slow campaign in partnership with worldfamous DJ Armin van Buuren. This campaign is refreshing and innovative as it brings the message of moderation directly to the club and dance floor. In Asia Pacific, our OpCos in Taiwan, China and Vietnam have set aside 10% of their media investment to implement this campaign in HEINEKEN Asia Pacific Sustainability Report

56 responsible consumption Actions and results continued Product labelling Number of OpCos with responsible product labelling for Heineken We want our consumers to make wiser, responsible choices by providing them with accurate and relevant information about our products on our packaging. Our product labelling includes not only information on alcohol content, but also messages on responsible drinking, going beyond what is required by law in our respective countries of operation. We place our Enjoy Heineken Responsibly logo visibly on our products, communications, sponsorships and merchandise Consumer facing Heineken packaging 17 1 Heineken communication 15 3 Location of local sponsorships 10 6 Location of local Heineken merchandise In 2014, we will review our packaging for the Tiger brand in all our markets. We are preparing to incorporate the message of drinking responsibly on product labels in markets that have not yet included this. Plans will be implemented in Fully incorporated Partly incorporated HEINEKEN Asia Pacific Sustainability Report

57 responsible consumption Actions and results continued Marketing and selling responsibly We aim to ensure that all of our HEINEKEN Asia Pacific commercial communication is responsible, consistent and conforms to HEINEKEN Rules (HeiRules). Besides investing in media and brand communication to advocate responsible consumption, we implemented the Rules on Commercial Communication (RCC Code) for our Regional Office and all OpCos in These rules ensure that in marketing and selling, we do not actively or unintentionally contribute to excessive consumption or misuse of alcohol. In 2014, all our OpCos will complete the e-learning module in our internal learning and development platform, the Global Commerce University (GCU) website. Adhering to the RCC Code, we only proceed with promotional activities in countries where at least 70% of the audience at the site of our promotion is over the legal drinking age of that country. Our commercial communications only feature people who are at least 25 years old while our websites request for age declaration at the point of access to determine age legality. In our commercial communications, we never create the impression that alcohol enhances social status, results in successful sexual advances or that violent and anti-social behaviour is acceptable. Reported complaints Despite our strict rules, DB Breweries Limited (DB) received 28 reports of non-compliance with marketing regulations in of these complaints were either successfully defended or determined by the Complaints Board as having no grounds to proceed. The other two complaints qualified for further action and were related to billboard advertisements. These were voluntarily removed before the complaints were received. As the advertisements were already withdrawn, there were no fines or penalties exacted for non-compliance. In Mongolia, our OpCo, Mongolian Beverages Company Pte Ltd (MBC), was fined $8,210 for a billboard placement. The intention was to display the OpCo s address. However, authorities classified the billboard as hidden advertisement because it included product images and the word spirit. To prevent such occurrences in the future, MBC will use its abbreviated company name, SBB LCC, instead of Spirit Bal Buram LCC and will not use product images in their public communications. HEINEKEN Asia Pacific Sustainability Report

58 responsible consumption Actions and results continued Working with partners We understand that the use of a generic approach to developing partnerships sometimes overlooks cultural differences in attitudes toward alcohol. In our partnership with local NGOs and third parties, we encourage partners to bring their expertise and resources to the table in order to build more effective programmes together. To ensure the highest quality in every campaign, every partnership has to meet the HEINEKEN seven-point partnership criteria. 1 Addressing a priority issue for the local market 2 Working together with a credible and effective partner Expenditure on responsible drinking campaigns and initiatives across the Asia Pacific region $1.1M $1.8M This year, we spent $1.8m, 64% more than 2012 ($1.1m), on 18 responsible drinking campaigns and initiatives across our region. Our public education and awareness campaigns ranged from television commercials and billboards to social media engagement. We aimed to address issues related to alcohol abuse in fresh, engaging and exciting ways in order to inspire consumers to drink responsibly. 3 Finding ways to provide more than funding 4 Agreed objectives, actions, measures and targets 5 Set up measurement and evaluation All our initiatives are featured on Drink-Savvy.com, our regional engagement platform, to encourage industry peers and other business partners to work with us in advocating responsible consumption. Recognising the rich cultural and language diversity in our region, Drink-Savvy.com is available in English and six Asian languages. 6 Collect evidence to show value and impact 7 Communicate and share outcomes In 2014, we hope to open more dialogues with like-minded stakeholders. Together, as one industry, we hope to discover new and impactful ways to develop effective selfregulatory programmes for the industry and to influence consumer attitudes towards responsible alcohol consumption. HEINEKEN Asia Pacific Sustainability Report

59 responsible consumption Actions and results continued Taking action at global industry level HEINEKEN joined 12 other global alcohol players to announce five significant collective commitments to help reduce harmful drinking in They are: 1 underage drinking 2 Strengthening and expanding marketing codes of practice 3 Providing consumer information and responsible product innovation 4 drinking and driving 5 Enlisting the support of retailers to reduce harmful drinking The five commitments consist of ten action areas. Work on these commitments will be coordinated by two global industry platforms, the International Centre for Alcohol Policies (ICAP) and the Global Alcohol Producers Group (GAPG). In Asia Pacific, we have contributed to the good progress made in We will continue to work individually or with partners to fulfill our commitments. Read more about the ten action areas in Heineken N.V Sustainability Report. HEINEKEN Asia Pacific Sustainability Report

60 responsible consumption Case studies Regional Have A Good Night Out We launched our award-winning Have a Good Night Out campaign for the fourth consecutive year across nine countries in four different languages. Our interactive multi-platform campaign targeted young and savvy adults between 18 and 34 years old. The campaign conveyed the message that through adopting responsible drinking practices, undesirable situations can be avoided and a night out would be enhanced. Through a series of six short tongue-in-cheek videos, consumers were provided with tips on responsible drinking behaviour such as know your limits, drink slowly and don t mix your drinks. The message was reinforced through interviews with respected local celebrities and famous nightlife personalities. Active online participation was encouraged through a contest where the best entry won an exclusive VIP package for two to Heineken Sensation To enter the contest, participants simply had to submit a personalised version of any of the six video lessons provided on the website with their individual responsible drinking message and get their friends to watch their videos online. CAMPAIGN RESULTS 10 WEEKS 7,500 CONTEST PARTICIPANTS 30,000 FOLLOWERS 129% VIEWED SHARED 1.1M 2M Party-goers sharing tips on how to have a good night out The 10-week campaign was highly successful, achieving the highest record of reach and engagement in the history of Drink-Savvy.com. Over 7,500 people participated online across five key markets in South-East Asia, more than double last year s total. In November 2013, the campaign won bronze in the Corporate Social Responsibility category at Singapore s Marketing Excellence Awards. Have a Good Night Out was also shortlisted for Best CSR Communications at PR Awards Singapore Watch this video to find out more about the campaign! HEINEKEN Asia Pacific Sustainability Report

61 responsible consumption Case studies continued Singapore Sunrise belongs to moderate drinkers Since 2006, Heineken has been the official beer partner for ZoukOut, Singapore s iconic outdoor dance music festival, adding its own twist to the party while advocating responsible drinking. In December 2013, APB Singapore launched Sunrise belongs to moderate drinkers at the ZoukOut festival at Sentosa Island. The aim was to encourage partygoers to pace their drinking so that they could have a good time and last until morning. As an additional incentive, they would be able to witness the most spectacular sunrise that ZoukOut has ever seen. Partygoers at ZoukOut had never seen the sunrise due to the location of the beach. APB Singapore decided to create a sunrise powered by the partygoers. The Heineken sun was a 10-metre wide balloon that contained a light source with adjustable intensity. The idea was simple the more partygoers danced, the higher the intensity of light and therefore, the more spectacular the sunrise. Partygoers dance steps were detected through a custom-made reactive dance floor. Measuring six by three metres, the dance floor was covered with special tiles that activated pressure sensors that tracked dance steps. That night, over 400,000 dance steps were collected. To further encourage responsible drinking, APB Singapore also handed out bottles of water at the Heineken tent so that partygoers could pace themselves while revelling in good music from the best DJs in the world. At 6.30am, ZoukOut finally experienced its first ever sunrise the spectacular Heineken sun over the horizon. Watch this video to find out more about the campaign! HEINEKEN Asia Pacific Sustainability Report

62 responsible consumption Case studies continued Indonesia and Papua New Guinea Serve responsibly, drink responsibly In 2013, in recognition of the part that retailers and beer promoters play in responsible consumption, we introduced service training for hotel, pub and store employees in Papua New Guinea and Indonesia. The aim was to educate them about responsible service and consumption. In Papua New Guinea, South Pacific Brewery Limited (SPB) expanded its Service of Alcohol (RSA) training programme to five new locations. The programme featured two-hour training sessions for employees serving SPB products in hotels and pubs. Through training in precautionary measures and emphasising staff responsibility, employees became better equipped to mitigate problems associated with excessive drinking. In Indonesia, Multi Bintang partnered with local 7-Eleven and Circle K convenience stores for our 21+ awareness campaign. The message was that alcohol must only be sold to those at or above the legal drinking age of 21. Training was provided to participating store employees, who learnt about local alcohol regulations and the dangers of underage consumption. In 2013, over 1,000 convenience Fridge stickers at retail outlets in Indonesia, as part of MBI s 21+ campaign store employees across 200 outlets have received the message that the promoter is also responsible for positive attitudes and responsible behaviour towards alcohol consumption. In 2014, the 21+ campaign will include Alfa Midi convenience stores. To build on the campaign s success, we have also implemented Training for Trainers, a programme for human resource personnel or employee trainers at participating convenience stores. Watch this video to find out more about the initiative! HEINEKEN Asia Pacific Sustainability Report

63 responsible consumption Case studies continued Thailand Let s Cheers! Drunk Don t Drive Following the success of the Anti-Drink Driving awareness campaign in Chiang Rai in 2011, Thai Asia Pacific Brewery Co Ltd (TAPB) initiated the Let s Cheers! Drunk Don t Drive campaign during the Songkran Festival in Chiang Mai. The campaign involved important stakeholders such as the traffic police to encourage responsible drinking and reduce alcohol-related road accidents during the festivities. A breath-analysing booth set up by TAPB for partygoers to test their blood alcohol content (BAC) Together with our partners, TAPB set up breath-analysing booths for partygoers to get their blood alcohol content checked. We also constructed temporary rest stops at high-risk locations so that festivalgoers who may have had too much to drink could sober up before heading home. Banners were also placed around the city to increase public awareness on the risks of drink driving. The campaign was a success as only 1.1% of recorded road accidents during the Songkran period in 2013 were alcohol-related. In addition, the total number of road accidents in Chiang Mai fell by 85.6% in comparison to the total in that period one year ago. HEINEKEN Asia Pacific Sustainability Report

64 Integrity The Big Emissions Enjoyment Health & Safety As our business grows, our core values remain strong and help to drive us towards achieving our objective. How we behave and work together is key to our success. Respect Communities Passion

65 behaviours - People Why this is important We aim to be the leading brewery in Asia Pacific. As our business grows, our core values remain strong and help to drive us towards achieving our objective. How we behave and how we work together is key to our success. In 2013, Human (HR) focused on two priorities. The first was to integrate APB into the HEINEKEN organisation and establish the operating principles of our Regional Office. The second was to harmonise key HR processes, policies and systems between HEINEKEN and APB, in the areas of talent management, functional and leadership capability, performance management and health and safety. Because APB and HEINEKEN share similar principles in work culture, it was natural to adopt HEINEKEN s values, rules, codes of conduct and policies that guide us in conducting our business. Not only do these values guide us in our ways of working, our values also represent our global position as a business partner, an employer and socially responsible corporate entity. Our values are: Our employees are the foundation of our business. With safety as an integral part of our culture, we work to ensure everyone gets home safe every day, so we can focus on developing our people for the future. Yu Ping Yu, Director, Regional Human 1. Passion for quality 2. Enjoyment: we bring enjoyment to life 3. Respect for individuals, society and the planet Brewing a Better Future is integral to our way of working. Aside from committing to the sustainable use of resources, community investment and responsible consumption, we are also committed to the people aspect of a sustainable business in Asia Pacific. As such, health, safety, employee and human rights are integrated into our culture and processes. HEINEKEN Asia Pacific Sustainability Report

66 behaviours - People Integrity HEINEKEN Rules The HEINEKEN Rules (HeiRules) are a set of 37 rules that define how we work and conduct our day-to-day business, to ensure that our growth is sustainable. This requires us to act with integrity and respect for our long-standing values of Passion, Enjoyment and Respect. It also requires consistency and discipline. Each rule consists of an objective, key dos and don ts, risks of noncompliance and controls that need to be set in place to mitigate the risks. Each HeiRule has references to relevant Standards and Procedures, which explain in detail the implementation, execution and compliance of the HeiRule. In 2013, the Global Audit team assisted management in implementing HeiRules in the Asia Pacific region. Our OpCos now have a responsibility to uphold these rules that are essential to the success of our business. By the end of 2013, a dedicated coordinator was appointed at every OpCo to oversee the implementation of and compliance to HeiRules. HEINEKEN Code of Business Conduct We are committed to conducting business with fairness, integrity and respect for the law and our values. We adhere to the global HEINEKEN Code of Business Conduct, which is communicated worldwide and available in more than 30 languages online and offline. This ensures that all our employees understand what is expected of them when they act on behalf of HEINEKEN. Awareness of and compliance to the HeiRules and Code of Business Conduct not only helps us to achieve our business objectives but also minimises financial risks and damage to our reputation. More importantly, we protect the health and safety of our employees all over the world. HEINEKEN Asia Pacific Sustainability Report

67 behaviours - People Integrity continued Speak Up Policy Even as we adhere to our rules and values, there might be instances of misconduct that our employees might suspect or observe. In such cases, we want them to speak up and bring the matter to attention without fear of retaliation. This is so that we can address the issue and take appropriate action. Thus, with effect from 10 August 2013, we are committed to the global Speak Up Policy. This replaces the previous Integrity Line, which was APB s Whistleblowing Procedure. It applies to everyone working on behalf of HEINEKEN. It is also applies to any parties with whom we have had some type of business relationship (business partners, suppliers, vendors, distributors and customers). In 2014, we plan to make the Speak Up service available in our Regional Office as well as in local languages for all our OpCos, such as Vietnamese, Laotian, Mongolian and Mandarin. The Speak Up service enables anyone to make a report directly to us in confidence and in their own language. They can then follow up on the status of their report. It includes a dedicated hotline number, website, contact numbers and address and is managed by an independent party, EthicsPoint, a US-based corporation that deals with regulatory compliance software. We will report on our use of the Speak Up service in Training and awareness In 2013, employees at all our OpCos were acquainted with the Code of Business Conduct through communication sessions. In 2014, the Global Business Conduct Office will conduct three training webinars on the Speak Up Policy for our local HR managers. We also plan for our employees to undergo e-learning and classroom training on the Code of Business Conduct in We expect training and awareness to be completed by HEINEKEN Asia Pacific Sustainability Report

68 behaviours - People Integrity continued How does the Speak Up service work? SPEAK UP 2 WHO CAN I TALK TO? 3 I AM WORRIED THIS GIFT IS TOO EXPENSIVE YOU CAN ALSO USE ONE OF THE FOLLOWING OPTIONS: I SUSPECT MISUSE OF COMPANY ASSETS IS THIS FRAUD? IF POSSIBLE, TALK TO THE PERSON INVOLVED OR SEND AN TO BUSINESSCONDUCT@HEINEKEN.COM OR 1 CONCERNED ABOUT MISCONDUCT? TALK TO YOUR MANAGER, HR REPRESENTATIVE, INTERNAL AUDITOR OR LEGAL COUNSEL OR YOU CAN ALWAYS CONTACT YOUR TRUSTED REPRESENTATIVES CALL THE INTEGRITY LINE, MANAGED BY AN EXTERNAL AND INDEPENDENT PARTY OR GO TO TO FILE A REPORT OR TO GET MORE INFORMATION I FEEL DISCRIMINATED OR HARASSED I SUSPECT BRIBES ARE BEING PAID HEINEKEN Asia Pacific Sustainability Report

69 behaviours - People Employment practices Our Employees and Human Rights Policy In 2013, we adopted and implemented the HEINEKEN Employees and Human Rights Policy, which is fully aligned with the Code of Business Conduct. This policy is applicable to all OpCos and subsidiaries in which HEINEKEN Asia Pacific holds a majority share or has management control. It highlights our standards in 11 areas, such as: Nondiscrimination Working hours Freedom of association and the right to collective bargaining Remuneration Forced labour Health and safety Child labour Harassment Training and personal development Security Non-complicity in human rights violation Since the implementation of the policy in 2013, nine out of 22 OpCos have communicated the policy to our workforce. Six of our OpCos have performed a gap analysis to align their local practices with the content of the new policy. The remaining OpCos will review the policy and develop an action plan in See Appendix 5 for more details on the progress implementation. HEINEKEN Asia Pacific Sustainability Report

70 behaviours - People Employment practices continued Reported cases of misconduct Employees by country in 2013 In 2013, our OpCo, South Pacific Brewery in Papua New Guinea received a report on harassment. A meeting was set up between the parties involved and the alleged perpetrator apologised. Disciplinary actions were taken quickly, which included issuing a formal warning to the employee and banning the employee from alcohol consumption at company functions. No other reports of harassment were made after the corrective action was implemented. No incidents of discrimination were reported in Our workforce Our workforce in 2013, including full- and part-time permanent and contract employees, totalled 7,371 across 17 countries. This is an increase from the total workforce in the previous reporting year due to the expansion of our breweries and the addition of four sales offices in South Korea, Japan, Hong Kong and Taiwan. In 2013, we hired a total of 1,461 new employees. The voluntary turnover rate was 12.5%. Vietnam China Singapore Cambodia Indonesia New Zealand Papua New Guinea Thailand Sri Lanka Laos New Caledonia Korea Mongolia Solomon Islands Taiwan Hong Kong Japan 1,974 1, % 22.1% 7.4% 6.9% 6.4% 6.2% 5.9% 4.3% 2.6% 2.4% 1.9% 1.7% 1.6% 1.6% 1.5% 0.6% 0.3% In 2013, Vietnam, China and Singapore remain the largest employers, consistent with our reporting in HEINEKEN Asia Pacific Sustainability Report

71 behaviours - People Employment practices continued Gender and age profile of our workforce Women made up 26.8% of our workforce, an increase from the 23.4% in our previous reporting year. This is likely due to the increase in the average number of women hired for executive positions in Approximately one in four of our managers (24.5%) was female, consistent with the previous reporting year. Majority of our employees in 2013 were full-time while 5% were with us part-time. We have a fairly young workforce. In 2013, 30.2% of our employees were less than 30 years old while 61.6% were between the ages of 30 and 50 years old. One of HEINEKEN s priorities is to hire local talent to support our local communities. In our region, 95.9% of our workforce comprised citizens of the country in which they work and that 42.3% of senior management was hired locally. Employees by gender in 2013 Employees by age in 2013 Male Female 5,399 1, % 26.8% Below Over 50 2,230 4, % 61.6% 8.2% See Appendix 2: GRI Supplements for more information. HEINEKEN Asia Pacific Sustainability Report

72 behaviours - People Employment practices continued the rights of our employees It is our responsibility to protect our employees. For instance, we are mindful that our female beer promoters are at high risk for sexual harassment and coerced drinking. We reinforce HEINEKEN s Employees and Human Rights Policy throughout our operations to safeguard our employees workplace and support our employees. We also have a grievance procedure that we actively use. In 2013, our employees in 14 OpCos clocked a total of 2,151 training hours in familiarising themselves with the policy and procedures. Employee benefits Taking care of our employees is one of our priorities. To attract and retain the best talent, we offer a comprehensive range of perks to meet the diverse needs of our employees. Our full-time employees have the benefits of life insurance, health care, disability/invalidity coverage, parental leave, retirement benefits and stock ownership. See Appendix 2: GRI Supplements for details on employee benefits. HEINEKEN Asia Pacific Sustainability Report

73 behaviours - People Staff alcohol responsibility Our employees are our ambassadors. By adhering to consistent standards and discipline internally, we can increase the credibility of our message on responsible consumption. The HEINEKEN Alcohol Policy guides our employees on appropriate conduct towards the use of alcohol. We also have internal programmes that are aimed at educating our employees and enforcing discipline. In 2013, we ran an employee engagement and internal communications campaign in tandem with the Have a Good Night Out regional responsible drinking campaign. Quizzes were organised, which triggered dialogues on making the right choices when it comes to alcohol and reinforced the importance of staff alcohol responsibility. This year, we also held a Drinking Staff Contest at our Regional Office. This involved 50 employees, who were encouraged to visit the Have a Good Night Out website, vote for their favourite responsible drinking video and submit a photo of themselves having a good night out with friends or family. In 2014, we plan to highlight this issue to employees and engage them through our Global Enjoy Responsibly Day. We will commence a pilot implementation of HEINEKEN s Cool@Work programme at our OpCo in Papua New Guinea. In 2015, we plan to implement Cool@Work at the rest of our OpCos. The programme aims to encourage employees to embody and spread the message of having alcohol in moderation. It will include targeted communication, training and support for our employees based on their drinking habits. HEINEKEN Asia Pacific Sustainability Report

74 behaviours - People Operational health and safety Operational safety performance in our production units Unit Parameters (absolute values) Fatalities of company personnel Cases 0 0 Fatalities of contractor personnel Cases 0 0 Fatalities of company personnel in commuting Cases 0 0 Parameters (absolute values) We share a responsibility with our employees and contractors in ensuring safety in the workplace. To foster a zero accident culture among employees and raise standards of operational safety at our breweries, we adhere to the Safety Pillar in Total Productive Management (TPM). Accidents reported This year, we saw a reduction in the number of accidents of employees and contractors at our production breweries including warehouse units. This is a result of more training in technical safety and discussions about safety conducted at our workplaces. The number of accidents fell by 33% to 22 cases in 2013, as opposed to 33 reported cases in Accidents affecting contractors also decreased by 33% to eight cases in 2013, compared to 12 cases in For the third consecutive year, no fatal accidents were reported. Accidents of company personnel Cases Accidents of contractor personnel Cases 12 8 Lost days of company personnel Days 487** 135 Workforce (Full-Time Equivalents) FTEs 2,929** 3,242 Performance indicators (average values) Achieved Accident frequency Cases/100 FTE 1.1** 0.7 Accident severity Days/100 FTE 16.6** 4.2 **Figures are restated to reflect changes in recording after the year-end HEINEKEN Asia Pacific Sustainability Report

75 behaviours - People Operational health and safety continued The main contributors to our regional health and safety performance were our breweries in Auckland and Port Moresby. In Auckland, employees addressed safety issues proactively through preventive actions. They also took corrective action against potential hazards and previous near misses. Through their efforts, they significantly reduced the probability of accidents occurring. Our colleagues at Port Moresby encouraged safety in the packaging department through daily tool-box talks with employees at the start of each shift and enforcing strict policing of personal protective equipment (PPE). In addition, we appointed and trained safety champions to lead their respective departments on promoting awareness of safe behaviour. We also improved signage by using the local language. The number of accidents increased at breweries in Haikou, Lae, Magatainoka and Phnom Penh. Our brewery in Lae reported more than twice as many accidents for employees and contractors compared to Most of these were cuts sustained from broken glass as a result of operators and contractors not donning proper PPE. Moving forward, the brewery will implement more safety awareness sessions and ensure better allocation of our PPE inventory. The number of accidents remained constant in our breweries in Da Nang, Guangzhou, Ho Chi Minh City, Quang Nam, Tangerang, Tien Giang, Tuas and Vientiane. There was a decrease in the number of accidents in ten breweries, Auckland, Bangkok, Hanoi, Honiara Mawathagama, Noumea, Port Moresby, Sampang Agung, Timaru, and Ulaanbaatar. For the fifth consecutive year, our breweries in Quang Nam and Vientiane were accident-free. HEINEKEN Asia Pacific Sustainability Report

76 behaviours - People Operational health and safety continued Accident frequency cases/100 FTE for all sites ** **Figures are restated to reflect changes in recording after the year-end Accident frequency In 2013, our accident frequency (AF) fell from 1.1 to 0.7 cases per 100 Full-Time Equivalents (FTEs). We are pleased to report that we have exceeded our target (1.0 case per 100 FTE), which is more than a 10% reduction in AF for We will continue to strive for zero accident frequency. Our brewery in Noumea reported an AF of 4.8 cases per 100 FTEs, which is more than five times the average AF for Asia Pacific in 2013 but is an improvement of 26% compared to Our brewery in Lae reported an AF of 2.6 cases. In 2014, we plan to lower AF levels by implementing Operational Risk Reduction (ORR) at selected sites, improving safety visual management, launching e-learning in safety, enforcing stricter risk assessments and using a behavioural-based safety observation system to improve safety culture. HEINEKEN Asia Pacific Sustainability Report

77 behaviours - People Operational health and safety continued Accident severity In 2013, the number of lost days associated with accidents reported decreased by 72%, from 487 in 2012 to 135 lost days in This reduction in lost days implies decreased accident severity, from 16 lost days per 100 FTEs in 2012 to 4 lost days per 100 FTEs in Six breweries showed no change in the number of lost days incurred. Another six reflected an increase while ten other breweries reduced their number of lost days. Accident severity lost calendar days/100 FTE for all sites **Figures are restated to reflect changes in recording after the year-end 16.6** Our brewery in Port Moresby showed significant improvement, from 153 lost days in 2012 to just one lost day in In Ho Chi Minh City, our brewery reported five lost days this year as opposed to 106 in Such improvements are a positive result of ORR and our Accident Incident Reduction (AIR) teams, the implementation of TPM s safety pillar, recording of near misses, safety-related staff engagement activities and compliance with HEINEKEN s safety standards. Our breweries in Guangzhou, Haikou, Honiara and Mawathagama reported the highest increase in the number of lost days, ranging from five to 10. The highest numbers were reported at Lae, Mawathagama and Noumea, ranging from 18 to 55 lost days. Injuries from broken glass, slips and falls were the most common at these breweries. To improve safety standards, our brewery in Mawathagama will carry out hazard analyses on all its machines and conduct mandatory training for all employees in basic safety and ergonomics. It will also implement ORR teams. We did not receive complaints on non-compliance with local safety regulations this year. HEINEKEN Asia Pacific Sustainability Report

78 behaviours - People Operational health and safety continued Activities to improve health and safety A global safety strategy was presented at the global senior leadership forum in March It addressed five areas, known as the 5 Cs: Compliance, Competence, Calibration, Cultural and Leadership and Continuous Improvement. The safety strategy is determined and monitored by the Group and Regional Safety Committees, comprising senior management and functional experts from Sales, Supply Chain and Human. In line with our global strategy, we will implement the following initiatives next year: Accident Reporting and Information Software (ARISO) programme for all OpCos in Asia Pacific. ARISO is a central reporting platform that provides overviews, analysis and key reports on accident reporting in production, commerce and business support. Safety e-learning modules introduced and monitored through Green Gauge reporting. HEINEKEN Asia Pacific Sustainability Report

79 behaviours - People Case studies Cambodia Improving the welfare and working conditions of female beer promoters Female beer promoters in Cambodia are vulnerable to health and safety risks. The nature of the job may require that they drink with customers, which puts them at risk of harassment and possibly violence. To protect our female beer promoters, Cambodia Brewery Limited (CBL) set up the Beer Selling Industry Cambodia (BSIC) in 2006 together with other partners. The objective of the BSIC is to improve the health, safety and working conditions of beer promoters by setting industry standards. These are depicted in the BSIC Code of Conduct which applies to promoters and external parties, including employers, bar owners and customers. In 2013, a research study was done to evaluate the BSIC s impact on beer promoters working conditions and to ensure that workers were receiving the support and benefits that BSIC is designed to provide. The research comprised of 300 face-to-face interviews with beer promoters, 250 BSIC members and 50 non-bsic members in Phnom Penh and Siem Reap. In addition, BSIC conducts regular training on health and safety for female employees. We are pleased to share that working conditions of beer promoters who belong to the BSIC have improved significantly over the past three years. It is our priority and commitment to ensure that the health and safety of our beer promoters at workplaces are aligned with the BSIC Code of Conduct. All beer promoters on our records have benefits such as healthcare, disability/invalidity coverage and parental leave. In addition, to recognise the hardwork that our beer promoters do, CBL, together with Ministry of Women s Affairs (MoWA) and CARE Cambodia, celebrated International Women s Day 2013 with hundreds of beer promoters. To show appreciation for our beer promoters efforts, CBL presented them with a surprise gift that included a postcard and a token sum. Nonetheless, there are still risks to beer promoters, mainly due to non-bsic members who continue to resist joining the BSIC and employers who do not adhere to minimum standards of employment for beer promoters. The industry may come under further scrutiny if the situation worsens or gains traction among the unions, NGOs and media. Going forward, the Regional Corporate Relations team and CBL management will continue to monitor the situation, develop stronger relationships with stakeholders and address any issues that arise on a case-by-case basis. HEINEKEN Asia Pacific Sustainability Report

80 behaviours - People Case studies continued New Zealand Everyone Home Safe Every Day New Zealand has one of the worst national occupational health and safety records among developed nations in the world, with more than twice the number of fatal accidents per capita than comparable economies such as the United Kingdom. Around 75 people die from workrelated accidents and illnesses in New Zealand annually. Since 2010, DB Breweries embarked on a journey towards zero accidents, zero harm, which means incorporating safety into every aspect of our business operations. This led to our appointment of a dedicated safety manager. More importantly, we wanted to develop a culture of safety among our employees and demonstrate that safety of our people is important to us. This year, the Everyone Home Safe Every Day campaign was launched to communicate our commitment in prioritising our people. To motivate our employees, we set improvement targets at all our production sites based on global standards of safety set by senior management. Our in-house tool, the Safety Management Index, was developed to track performance of various departments against global standards. Recognising that our managers are key influencers in the campaign for safety, we developed a businessspecific three-day safety leadership training course for all managers. To make safety a part of our responsibilities, we included safety into all job descriptions. Safety is now also a measurable aspect of employees Key Result Areas (KRA). As for our employees, we provided e-learning modules on safety topics such as, lockout/tagout (LOTO), energy conservation and competition law. Comprehension and completion of these e-modules could be tracked in real time. We are proactive in ensuring safety because we believe that all workplace harm is preventable. In order to identify trends and spot root causes, we implemented a comprehensive web-based reporting system. Accessed and updated by employees, contractors and our subsidiaries, the reporting system tracks health and safety metrics such as accidents, incidents and near misses. To encourage the culture of safety, many employee-driven initiatives were supported in These included the Safety Song Competition that led to three professionally recorded tracks, the Safety Poster Slogan Competition and the Safety colouring booths at family day that helped educate employees families on common household hazards. In 2014, we will continue to drive the campaign to achieve a zero accident culture. 1 Independent taskforce on workplace health and safety 2013, He Korowai Whakaruruhau HEINEKEN Asia Pacific Sustainability Report

81 behaviours - People Case studies continued Vietnam Getting our employees home safe Vietnam Brewery Limited (VBL) believes that setting a good example for responsible drinking should begin with employees. This year, VBL launched a motorbike taxi service for its direct sales employees. We partnered with Honda Vietnam to provide training for 400 employees on safe riding and road safety, especially in challenging road conditions. In addition, we arranged for motorbike taxis to fetch direct sales team members home after drinking at work. The project involved about 271 employees in the direct sales. Objectives of this pilot initiative were not only to ensure the safety of VBL s direct sales employees, but also to reinforce the importance of responsible alcohol consumption. This also demonstrated VBL s commitment to advocate the message of drink, don t drive and cultivated a culture of responsibility among employees. Watch this video to find out more. HEINEKEN Asia Pacific Sustainability Report

82 behaviours - Communities Why this is important We recognise that a sustainable business is dependent on the stability and well-being of our communities. This is why we view corporate giving to be both philanthropic and strategic to the business. Our corporate giving is aimed at creating long-term shared value through financial giving, community partnerships and employee volunteerism. In 2013, our markets across the Asia Pacific region invested actively in strategic water and education projects that benefited their local communities. Our priorities Our Community Investment (CI) focus areas are selected from the United Nation Millennium Development Goals that are relevant to developing economies in our region and our business. Clean fresh water is as essential to our business as it is to local communities. Beer is, after all, 95% water. water resources is a focus area that is in line with our sustainability strategy, Brewing a Better Future. Our community efforts are related to water conservation and include initiatives such as improving accessibility to clean water, increasing hygiene and health standards and promoting awareness of water conservation in the communities in which we operate. We actively invest in communities not because we want to be seen doing it but because we believe in our responsibility to do so. For us this means more than financial donations; we want our actions to leave a lasting and positive impact on communities. Mark Campbell, Director, Regional Corporate Relations Education Education eradicates poverty through building capabilities. In the long run, this empowers communities and transforms lives, which aligns with our sustainability strategy. We believe in equal education opportunities for all, particularly in the developing countries in which we operate. With this in mind, we continually initiate educational programmes and scholarships for those in need. HEINEKEN Asia Pacific Sustainability Report

83 behaviours - Communities Creating value in communities continued Our Community Investment (CI) Policy Our Community Investment (CI) policy was implemented in It provides a practical and measurable framework that guides us in establishing community partnerships and in determining our philanthropic spending to strategically maximise our positive impact on communities. Definition of Community Investment We define CI as financial and in-kind donations as well as contribution of time, skills and knowledge. Our CI projects are typically formal commitments that last a minimum of twelve months. The principles on which we base our CI decisions are as follows: 1 2 Community investment should be made in our areas of focus, water and education. They should also conform to local legal standards. Community investment should be sustainable. 3relevance Projects include local communities that are in the vicinity of where we operate and involve local stakeholders where possible to ensure and sustainability of our projects. We do not consider as community investment, the promotion of responsible drinking, improvement of brand promoters welfare and investment in operational infrastructures, such as wastewater treatment plants to improve operational efficiencies. This is because these initiatives are already fundamental to how we conduct our business responsibly. We regard general philanthropy as committing to charitable causes such as emergency relief. Assessment of our CI projects We adopted methodology from the London Benchmark Group (LBG) and applied CSR Asia s Community Investment Scorecard for measuring and reporting inputs, outputs and impacts of our CI projects. Our employees are trained to evaluate our CI projects using both systems. This ensures that we continually and effectively address the needs of local communities. HEINEKEN Asia Pacific Sustainability Report

84 behaviours - Communities Creating value in communities continued Our total corporate giving With the implementation and training of our CI policy, we saw a positive shift in our total corporate giving from philanthropy to community investment in 2012 through our CI policy. Our overall contribution to communities decreased 12.8% to $2,044,783 in 2013 from $2,344,539** in 2012, due to a reduction in our outlay for general philanthropy. However, our proportional spending on strategic CI projects rose significantly from 23.2% in 2012 to 69.5% in In 2014, we expect to continue developing more water projects. Our contribution to communities by motive Motive of contribution Philanthropy $623,990 (30.5%) $1,800,578** (76.8%) Community Investment $1,420,793 (69.5%) $543,961** (23.2%) **Figures are restated to reflect changes in recording after the year-end HEINEKEN Asia Pacific Sustainability Report

85 behaviours - Communities Creating value in communities continued We recognised that investing in communities goes beyond monetary contributions. In 2013, our direct contributions consisted of cash, in-kind donations, programme management and employee volunteering time. This year, our average non-cash contributions increased from 9.5% in 2012 to 26.2% in Our Regional Office and seven OpCos contributed approximately $347,731 in management time and effort towards community initiatives. 1,151 employees from our Regional Office and 11 OpCos participated in volunteering activities, with time contributed valued at $53,891. Forms of direct contribution to communities Forms of direct contribution Cash $1,376,555 (73.8%) $2,121,808** (90.5%) In kind $85,132 (4.6%) Management $347,731 (18.7%) Time $53,891 (2.9%) } $222,731** (9.5%) (Further breakdown is not available) **Figures are restated to reflect changes in recording after the year-end HEINEKEN Asia Pacific Sustainability Report

86 behaviours - Communities Creating value in communities continued Causes we support and education were the largest areas of our contribution in 2013, which is consistent as those are our priority areas. The rest of our giving was directed towards causes such as emergency relief, social welfare, environment and healthcare. A total of $457,199 was invested in five water projects in 2013, four of which were strategic CI programmes. We expect to plan and implement more water programmes in As for education, we invested $574,594 in 16 projects this year. Half of these initiatives were CI projects. This is an increase of 5.6% from $543,961 in 2012, and four times the number of projects. Contribution by causes Causes $457,199 (22.4%) $0 (0.0%) Education $574,594 (28.1%) $543,961 (23.2%) Others $1,012,989 (49.5%) $1,800,578 (76.8%) HEINEKEN Asia Pacific Sustainability Report

87 behaviours - Communities Creating value in communities continued Our community partnerships Sources of contribution through leverage in 2013 Forging sustainable and mutually beneficial partnerships to help communities is often overlooked in traditional corporate philanthropy. At HEINEKEN Asia Pacific, we recognise the value of partnerships and the additional leverage that it provides for us to maximise benefits for our communities. While organising and pooling resources for CI projects in 2013, we engaged not only our employees but also external partners, such as NZ Federated Farmers (New Zealand) and the Boroko Rotary Club (Papua New Guinea). Contributions from external partners exceeded $80,000. This amount represents the majority of total leverage in Employees payroll Other employee contributions External partners Other sources $1,140 $27,593 $81,844 $70, % 15.2% 45.1% 39.1% HEINEKEN Asia Pacific Sustainability Report

88 behaviours - Communities Creating value in communities continued Plans ahead Investing in our communities is an ongoing commitment. We continually encourage our senior managers and staff to volunteer their time for our communities. In 2014, we aim to increase our efforts in training employees on our CI framework. Training topics will include developing partnerships, conducting regular monitoring and performing impact assessments on CI projects. We believe in inclusive growth and will continue to make direct contributions to our communities where most needed and relevant to our CI strategy. We will also tap on leverage, through engaging the resources of our employees and external suppliers for our CI projects. We hope that our continuous efforts will improve the social welfare and quality of life in our communities for years to come. HEINEKEN Asia Pacific Sustainability Report

89 behaviours - Communities Case studies Vietnam Providing access to clean water and raising awareness of water conservation Contribution to One Minute Less for Million Smiles in 2013 In Vietnam, only 11.7% of households in rural areas have access to a safe piped water source. Vietnam also faces clean water wastage due to poor infrastructure and waste management. In addition, 30% of the population is not aware of these water issues. This has led to inadequate sanitation and water pollution which results in 9,000 deaths annually and many cases of illnesses 2. In recognition of this, Vietnam Brewery Limited (VBL) first launched One Minute Less for Million Smiles in 2012 to educate the community about the shortage of clean water and the importance of water conservation. In 2013, VBL raised VND1 billion ($59,500) to support three clean water initiatives in Tien Giang, Da Nang and Quang Nam. 590 volunteers from VBL offices cleaned up canals, rivers and beaches in seven locations across 2 Source: Ministry of Health and Ministry of Natural and Environment Vietnam. VBL also distributed 10,000 leaflets that encouraged locals to use less water in their daily lives. The campaign has shown success with more than 39,000 watersaving commitments made on the website and extensive media coverage in print, radio and television. As of December 2013, there were more than 60,000 likes on its Facebook page. In 2014, the campaign will continue calling for commitments to conserve water as it engages youth participants and extends to other cities and provinces in Vietnam. Cash Publicity and management Time $59,528 $220,190 $11, % 75.7% 3.8% Watch this video to find out more about this project. HEINEKEN Asia Pacific Sustainability Report

90 behaviours - Communities Case studies continued it aligned with the government s Vision 2050 Healthy, Wealthy and Wise Society. SPB funded PGK160,000 ($89,124) for the project while the Boroko Rotary Club provided consultative support in addition to a cash donation of PGK10,000 ($5,570). The project also had the support of landowners and 1,800 local villagers. Contribution to SP Brewery Clean Drinking Project in 2013 Papua New Guinea Providing a sustainable source of clean drinking water to local community In Papua New Guinea, 60% of the population living in rural areas faces inadequate sanitation and poor access to safe drinking water. To improve accessibility to clean water, South Pacific Brewery (SPB) launched and completed its first SP Brewery Clean Drinking Project in Papua New Guinea in March The gravity-fed water supply system serves 45 households in the Mesime Village near our brewery, allowing the local residents to enjoy a reliable and convenient source of clean drinkable water. The installation involved the construction of a dam, reservoir and pipes to channel water from the nearest water source 5km away. In 74 days, the system was completed with 11 water tap outlets constructed at strategic locations in the village, with each water point shared among three to four households. The project created value for the local community and enabled SPB to build meaningful relationships with the government and NGOs. It also received media attention, which helped to create awareness of the issue of water scarcity in rural communities. Cash Management External partners $89,124 $18,382 $5, % 16.3% 4.9% The project was launched in conjunction with World Day and received support from local authorities as HEINEKEN Asia Pacific Sustainability Report

91 behaviours - Communities Case studies continued Indonesia The Biopori Project Flooding is one of the natural disasters that Indonesia often faces. High rainfall in the country and insufficient water catchment areas are some factors that contribute to severe flooding. As Indonesia continues to undergo rapid urbanisation, water absorption in the ground is also reduced. To prevent flooding, just Jakarta alone needs 76 million Biopori holes. Recognising that small actions can trigger effects on a larger scale, Multi Bintang initiated the Biopori project in Tangerang and Sampang Agung, which are towns where its breweries operate. A Biopori hole is essentially a small rainwater catchment pit that helps to drain rainwater into the soil while preserving water sources. This simple solution also increases clean water supply in the long run. In addition, in cases where organic waste is dumped into the hole, conditions allow it to turn into compost, nourishing the soil around the area. The campaign encouraged and taught households how to drill Biopori holes in the ground. We invested IDR19,800,000 ($2,375) in this project to provide drilling tools and hole covers. 20 employee volunteers contributed their time and effort, in physically drilling holes and educating the community on the incorporation of Biopori for three to four hours on weekends. The project has been successful so far for about 50 households, which have experienced lesser flooding and increased access to clean water, all from this small and simple solution. Contribution to Biopori project in 2013 Cash $2, % In kind $ % HEINEKEN Asia Pacific Sustainability Report

92 behaviours - Communities Case studies continued Singapore APB Foundation Scholarship for Persons with Disabilities Contribution to APB Foundation Scholarship for Persons with Disabilities in 2013 In support of students who wish to pursue higher education, APB introduced the Asia Pacific Breweries (APB) Foundation Scholarship for Persons with Disabilities in For the past nine years, we have empowered students with physical, hearing, visual or speech disabilities to fulfill their academic aspirations. In partnership with SPD, the initiative offers a unique bond-free scholarship of $12,000 per year that helps scholars manage their tuition fees at local universities. Since 2004, we have invested $780,000 for the benefit of 27 scholars who excelled not only academically but in extra-curricular activities as well APB Foundation Scholarship for Persons with Disabilities recipients (from left): Soh Chih Yuan Samuel, Winston Wong Chee Fong and Yip Pin Xiu, with Roland Pirmez, President of HEINEKEN Asia Pacific (second from left) Winston Wong is a final-year scholar in the National University of Singapore pursuing a degree in Bioengineering. An excellent student, he is also highly involved in organising activities for orientation camps, which led to his appointment as programme director in his faculty s freshman orientation camp in He plans to be a researcher after graduation and intends to pursue a doctorate. He hopes to generate greater awareness for people with disabilities through sharing his story. Cash $247, % Time $ % Management $20, % HEINEKEN Asia Pacific Sustainability Report

93 behaviours - Communities Case studies continued Contribution to VBL s Young Talent Support Towards Security Scholarship in 2013 Recipients of the scholarship at the Awards Ceremony, for the Young Talent Support Program Toward Security Vietnam Young Talent Support Towards Security Scholarship Since 2012, Vietnam Brewery Limited (VBL) has been supporting a scholarship programme Young Talent Support Towards Security for university students majoring in Environment and Environmental Economy. In partnership with the Saigon Times Group, the programme allows college students to further their research in the protection and sustainability of our water resources. Since 2012, our investment of VND1.22 billion ($72,625) has sponsored three water research projects and granted scholarships to 22 students. This is a step towards addressing the need for clean water in Vietnam while providing access to higher education and grooming the next generation of environmental scientists. Cash Management Other sources $32,145 $1,048 $3, % 2.9% 9.7% HEINEKEN Asia Pacific Sustainability Report

94 behaviours - Communities Case studies continued Contribution to Tui Drought Shout in 2013 New Zealand Tui Drought Shout More than 2,200 participants attended the Drought Shout fund raising event at the Tui Brewery in the North Island, to support farmers affected by the long hot summer in New Zealand. Attendees included NZ Federated Farmers, Stockfeed, Allflex, Westpac, ANZ, and local and regional politicians from the Wairarapa region. A total of NZD25,000 ($25,637) was raised in addition to NZD128,000 ($131,262) worth of in-kind support, in the form of volunteer hours, silage, stock feed and agricultural products. Besides providing aid, the event was important as it also fostered a strong sense of community among the farmers, who were able to meet others in the industry and share the challenges they were facing. Cash $25, % Time $5, % External partners $64, % Other sources* $61, % *Other sources include publicity spending for the event. HEINEKEN Asia Pacific Sustainability Report

95 GRI Reference Table The Big Emissions Reference Information

96 Appendix 1: GRI Reference Table G3.1 Content Index GRI Application Level B Standard Disclosures Part I: Profile Disclosures 1. Strategy and analysis Profile disclosure Description Level of reporting Section Page 1.1 Statement from the most senior decision-maker of the organization. Full Foreword Description of key impacts, risks, and opportunities. Full Foreword Organizational profile 2.1 Name of the organization. Full About HEINEKEN Asia Pacific Primary brands, products, and/or services. Full About HEINEKEN Asia Pacific Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. Full About HEINEKEN Asia Pacific Location of organization s headquarters. Full About HEINEKEN Asia Pacific Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Full Report boundary Nature of ownership and legal form. Full About HEINEKEN Asia Pacific Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Full About HEINEKEN Asia Pacific 4 HEINEKEN Asia Pacific Sustainability Report

97 Appendix 1: GRI Reference Table continued 2. Organizational profile Profile disclosure Description Level of reporting Section Page 2.8 Scale of the reporting organization. Full About HEINEKEN Asia Pacific behaviours people Significant changes during the reporting period regarding size, structure, or ownership. Full About this report Awards received in the reporting period. Full Benchmark and achievements Report parameters Profile disclosure Description Level of reporting Section Page 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Full About this report Date of most recent previous report (if any). Full About this report Reporting cycle (annual, biennial, etc.) Full About this report Contact point for questions regarding the report or its contents. Full Reference information Process for defining report content. Full Big picture Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). Full Report boundary HEINEKEN Asia Pacific Sustainability Report

98 Appendix 1: GRI Reference Table continued 3. Report parameters Profile disclosure Description Level of reporting Section Page 3.7 State any specific limitations on the scope or boundary of the report Full Report boundary Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. Full Report boundary Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Full Sustainability governance About this report Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods). Full About this report Operational health and safety Creating value in communities Appendix 4: Environmental data on production units in Q Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Full Report boundary About this report Table identifying the location of the Standard Disclosures in the report. Full Appendix 1: GRI Reference Table HEINEKEN Asia Pacific Sustainability Report

99 Appendix 1: GRI Reference Table continued 3. Report parameters Profile disclosure Description Level of reporting Section Page 3.13 Policy and current practice with regard to seeking external assurance for the report. Full About this report Governance, commitments and engagement 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Full Sustainability governance Indicate whether the Chair of the highest governance body is also an executive officer. Full Sustainability governance For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. Full Sustainability governance The Regional Sustainability Steering Committee comprises four males and a female, all of whom are executive members Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Full Stakeholder engagement Speak Up Policy Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization s performance (including social and environmental performance). 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Full Sustainability governance 14 Full Integrity HEINEKEN Asia Pacific Sustainability Report

100 Appendix 1: GRI Reference Table continued 4. Governance, commitments and engagement Profile disclosure Description Level of reporting Section Page 4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. Full Sustainability governance Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Full Big picture Integrity Procedures of the highest governance body for overseeing the organization s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles Processes for evaluating the highest governance body s own performance, particularly with respect to economic, environmental, and social performance. Full Sustainability governance Full Sustainability governance Explanation of whether and how the precautionary approach or principle is addressed by the organization. Full Big picture Heineken N. V Annual Report: Report of the Executive Board > Risk Management 5 7 HEINEKEN Asia Pacific Sustainability Report

101 Appendix 1: GRI Reference Table continued 4. Governance, commitments and engagement Profile disclosure Description Level of reporting Section Page 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Full water resources responsible consumption 52 behaviours - communities Memberships in associations such as industry associations and/or national/international advocacy organizations in which the organization: has positions in governance bodies; participates in projects or committees; provides substantive funding beyond routine membership dues; or views membership as strategic. Full Taking action at global industry level behaviours people: see case study List of stakeholder groups engaged by the organization. Full Stakeholder groups Basis for identification and selection of stakeholders with whom to engage Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Full Stakeholder engagement 8 10 Full Stakeholder engagement 8 10 Full Stakeholder dialogue 10 HEINEKEN Asia Pacific Sustainability Report

102 Appendix 1: GRI Reference Table continued G3.1 Content Index GRI Application Level B Standard Disclosures Part II: Disclosures on Management Approach (DMAs) Profile disclosure Description Level of reporting Section Page DMA EC Disclosure on Management Approach Economic (EC) Aspect Economic performance Full About HEINEKEN Asia Pacific 4 Heineken N. V Annual Report: Regional Review > Asia Pacific Indirect economic impacts Full behaviours: communities DMA EN Disclosure on Management Approach Environmental (EN) Aspect Energy Partial our Full water resources Emissions, effluents and waste Full our Compliance Full Environmental compliance 42 Overall Full water resources our DMA LA Disclosure on Management Approach Labour Practices and Decent Work (LA) Aspect Employment Full Integrity Employment practices HEINEKEN Asia Pacific Sustainability Report

103 Appendix 1: GRI Reference Table continued DMA LA Disclosure on Management Approach Labour Practices and Decent Work (LA) Profile disclosure Description Level of reporting Section Page Aspect Occupational health and safety Full Staff alcohol responsibility Operational health & safety Diversity and equal opportunity Full Employment practices 68 DMA HR Disclosure on Management Approach Human Rights (HR) Aspect Investment and procurement practices Full sustainably Non-discrimination Full Employment practices 68 DMA SO Disclosure on Management Approach Society (SO) Aspect Local communities Full responsible consumption behaviours: communities Public policy Full Taking action at global industry level 58 Compliance Full Marketing and selling responsibly 56 DMA PR Disclosure on Management Approach Product Responsibility (PR) Aspect Product and service labelling Partial Product labelling 55 Marketing communications Full responsible consumption Compliance Full Product labelling Marketing and selling responsibly HEINEKEN Asia Pacific Sustainability Report

104 Appendix 1: GRI Reference Table continued G3.1 Content Index GRI Application Level B Standard Disclosures Part III: Performance Indicators Economic Economic performance Profile disclosure Description Level of reporting Section Page EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Full Heineken N. V Annual Report: Regional Review > Asia Pacific Creating value in communities Indirect economic impacts EC8 Environmental Energy Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Full Creating value in communities: case studies EN3 Direct energy consumption by primary energy source. Full energy consumption EN4 Indirect energy consumption by primary source. Full energy consumption EN5 Energy saved due to conservation and efficiency improvements. Full HEINEKEN Asia Pacific Sustainability Report

105 Appendix 1: GRI Reference Table continued Environmental Energy Profile disclosure Description Level of reporting Section Page EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. Partial Making renewables part of the energy mix from fridges : case study 43 EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Partial Making renewables part of the energy mix from fridges : case study 43 EN8 Total water withdrawal by source. Full sources 26 EN9 sources significantly affected by withdrawal of water. Full our water resources in water scarce areas 28 Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas by weight. Full in production 35 HEINEKEN Asia Pacific Sustainability Report

106 Appendix 1: GRI Reference Table continued Environmental Emissions, effluents and waste Indicator Description Level of reporting Section Page EN18 Initiatives to reduce greenhouse gas and reductions achieved. Partial HEINEKEN S carbon footprint Making renewables part of the energy mix from fridges 41 : case study 43 EN21 Total water discharge by quality and destination. Full Wastewater management water resources: see case study EN22 Total weight of waste by type and disposal method. Full Wastewater management Waste Compliance EN28 Overall EN30 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Total environmental protection expenditures and investments by type. Full Environmental compliance 42 Full our water resources in water scarce areas 28 HEINEKEN Asia Pacific Sustainability Report

107 Appendix 1: GRI Reference Table continued Social: Labour Practices and Decent Work Employment Indicator Description Level of reporting Section Page LA1 Total workforce by employment type, employment contract, and region, broken down by gender. Full Employment practices Appendix 2: GRI Supplements LA LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region. Full Employment practices Appendix 2: GRI Supplements LA LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Full Employment practices Appendix 2: GRI Supplements LA Occupational health and safety LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender. Full Operational health and safety Appendix 6: Q operational health and safety data HEINEKEN Asia Pacific Sustainability Report

108 Appendix 1: GRI Reference Table continued Social: Labour Practices and Decent Work Occupational health and safety Indicator Description Level of reporting Section Page LA8 Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Full Staff alcohol responsibility Operational health and safety Appendix 2: GRI Supplements LA Diversity and equal opportunity LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. Full Employment practices Appendix 2: GRI Supplements LA Social: Human Rights Investment and procurement practices Indicator Description Level of reporting Section Page HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken. Partial sustainably HEINEKEN Asia Pacific Sustainability Report

109 Appendix 1: GRI Reference Table continued HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. Full Integrity Employment practices behaviours people: see case studies Non-discrimination HR4 Social: Society Local communities Total number of incidents of discrimination and corrective actions taken. Full Employment practices 69 SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. Full water resources responsible consumption responsible consumption: see case studies Creating value in communities Creating value in communities: see case studies Social: Society Public policy Indicator Description Level of reporting Section Page SO5 Public policy positions and participation in public policy development and lobbying. Full Taking action at global industry level 58 HEINEKEN Asia Pacific Sustainability Report

110 Appendix 1: GRI Reference Table continued Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Full Environmental compliance Marketing and selling responsibly Social: Product Responsibility Product and service labelling PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Partial Product labelling 55 Marketing communications PR6 PR7 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. Full Marketing and selling responsibly 56 Full Marketing and selling responsibly 56 HEINEKEN Asia Pacific Sustainability Report

111 Appendix 2: GRI Supplements LA1 Employment by region, gender and employment type Contract type Number of male employees Number of female employees Total number Permanent 3,389 1,177 4,566 Temporary 2, ,805 Total 5,394 1,977 7,371 Employment type Number of male employees Number of female employees Total number Full-time 5,284 1,713 6,997 Part-time Total 5,394 1,977 7,371 Region Number of male employees Number of female employees Total number South/South-East Asia ,201 Indochina 2, ,975 North/North-East Asia 1, ,042 Oceania ,153 Total 5,394 1,977 7,371 HEINEKEN Asia Pacific Sustainability Report

112 Appendix 2: GRI Supplements continued LA2 Employees new to and leaving the company breakdown by gender and region Region New male employees % New female employees % Male employees leaving % Female employees leaving South/South-East Asia % % % % Indochina % % % % North/North-East Asia % % % % Oceania % % % % Total 1, % % % % Region Below 30 % % Over 50 % South/South-East Asia % % 2 1.1% Indochina % % 6 1.4% North/North-East Asia % % 4 0.6% Oceania % % 8 3.5% Total % % % % Region Below 30 % % Over 50 % South/South-East Asia % % 9 6.8% Indochina % % 3 1.7% North/North-East Asia % % 7 1.4% Oceania % % % Total % % % HEINEKEN Asia Pacific Sustainability Report

113 Appendix 2: GRI Supplements continued LA3 Benefits provided to employees by employment and contract type Life Insurance No of OpCos providing benefit Parental Leave No of OpCos providing benefit Full-time employees 15 Part-time employees 7 Temporary employees 6 Full-time employees 20 Part-time employees 7 Temporary employees 6 Health Care No of OpCos providing benefit Retirement Provision No of OpCos providing benefit Full-time employees 21 Part-time employees 7 Temporary employees 7 Full-time employees 15 Part-time employees 5 Temporary employees 3 Disability/Invalidity coverage No of OpCos providing benefit Stock Ownership No of OpCos providing benefit Full-time employees 19 Part-time employees 7 Temporary employees 6 Full-time employees 2 Part-time employees 0 Temporary employees 0 HEINEKEN Asia Pacific Sustainability Report

114 Appendix 2: GRI Supplements continued LA8 Number of OpCos that offer training or advice to employees, their immediate family or other community members of the following issues which can lead to serious diseases Group Exercise Smoking Nutrition/Diet Stress Employees 15 (68.2%) 10 (45.5%) 8 (36.4%) 11 (50%) Immediate family 2 (9.1%) 1 (4.5%) 2 (9.1%) 1 (4.5%) Community members 1 (4.5%) Number of OpCos that offer the following assistance to employees, their immediate family and/or community members when diagnosed with serious disease Group Counselling Treatment Employees 14 (63.6%) 17 (77.3%) Immediate family 7 (31.8%) 6 (27.3%) Community members 1 (4.5%) 0 HEINEKEN Asia Pacific Sustainability Report

115 Appendix 2: GRI Supplements continued LA13 Employment by gender, age group, and origin per employee category Breakdown by gender and category percentage (%) Job Grade Male Female Senior management 87.2% 12.8% Middle management 73.9% 26.1% Production employees 87.4% 12.6% Other employees 65.4% 34.6% Breakdown by age group and category percentage (%) Job Grade Below Over 50 Senior management 5.1% 66.7% 28.2% Middle management 3.9% 82.5% 13.6% Production employees 32.8% 55.4% 11.8% Other employees 32.9% 62.0% 5.2% Breakdown by origin and category percentage (%) Job Grade Home country Outside of home country Senior management 42.3% 57.7% Middle management 83.7% 16.3% Production employees 97.2% 2.8% Other employees 97.8% 2.2% HEINEKEN Asia Pacific Sustainability Report

116 Appendix 3: Definitions of parameters and indicators Environmental parameters and indicators Parameters Thermal energy consumption Electricity consumption Definition of thermal energy in MJ (the corresponding emission is derived from this figure using the WBCSD Protocol) of electrical energy in kwh consumption consumption in m 3 Solid waste disposal COD load of effluent Non-recycled waste in kg such as hazardous waste, wastewater treatment sludge and industrial waste The chemical oxygen demand of treated or untreated wastewater leaving the production unit and discharged to surface water in kg Wastewater treated The volume of wastewater treated expressed in m 3 Number of complaints Number of external environment-related incidents External complaints related to nuisance Incidents related to environment and safety which had an impact outside the production unit Performance indicators Specific thermal energy consumption Specific electricity consumption Specific total energy consumption Specific emission Specific water consumption Definition Thermal energy consumption per unit produced in MJ/hl beer, cider, soft drinks and water Electricity consumption per unit produced in kwh/hl beer, cider, soft drinks and water Equals thermal energy consumption plus 3.6 times the electricity consumption per unit produced Fossil emission (direct and indirect) respectively derived from thermal energy and electricity consumption, plus refrigerant losses expressed in equivalents per unit produced in kg/hl beer, cider, soft drinks and water consumption per unit produced in hl/hl beer, cider, soft drinks and water HEINEKEN Asia Pacific Sustainability Report

117 Appendix 3: Definitions of parameters and indicators continued Environmental parameters and indicators Performance indicators Non-recycled industrial waste Definition The amount of non-recycled waste per unit produced in kg/hl beer, cider, soft drinks and water, consisting of packaging waste, industrial waste and non-recycled co-products Safety parameters and indicators Parameters Fatal accidents Accidents Lost days Workforce Performance indicators Accident frequency Accident severity Definition Fatalities of production unit staff and contractor personnel Accidents of production unit staff and contractor personnel Absence due to an accident, own staff in calendar days Expressed in Full-Time Equivalents (FTE) Definition Number of accidents resulting in absence from work per 100 FTE Lost days from work per 100 FTE Community investment indicators Performance indicators Direct contributions Definition Contributions made by the company; the combined cash value of these contributions = the total cost of your community investment project. HEINEKEN Asia Pacific Sustainability Report

118 Appendix 3: Definitions of parameters and indicators continued Community investment indicators Performance indicators Cash Time In-kind Management Leveraged contributions Employees payroll giving Employees other contributions Customers Other external partners Other sources Definition Total cash contributed. E.g. direct donations, social sponsorship, matching employee giving Value of time contributed by employees during company time. E.g. employee volunteering, fundraising activities Value of donations done in goods and services rather than money. E.g. donations of product (prizes for community events), contributions of used office equipment or furniture. Running costs and overheads. E.g. professional advice, research, communication to relevant audiences Contributions from outside the company as a result of company s initiative Value of donations from employees through their salaries Value of direct donations or funds raised by employees, including in-kind and time contribution that are outside working hours Value of donations and contributions by customers Value of donations contributed by partners to the project Value of donations or grants from other organisations or sources such as government or other businesses HEINEKEN Asia Pacific Sustainability Report

119 Appendix 4: Environmental data on production units in Q HEINEKEN Asia Pacific: breweries in scope for environmental reporting Unit Q Total beverage production khl 4,531.5 Beer production khl 4,457.3 Soft drink production khl 74.2 Thermal energy consumption GJ 344,281 Electricity consumption MWh 40,801 (direct: from fuel combustion and refrigerant losses)* tons 24,167 (indirect: from heat and electricity import)* tons 22,598 consumption m3 1,792,314.2 Waste water quantity* m3 1,555,877.4 Waste water organic load before treatment* tons COD 3,468 Effluent organic load discharged to surface water* tons COD Total co-products, packaging & industrial waste* tons 80,413 Non-recycled industrial waste* tons 2,795 Justified environmental and safety complaints number 0 Justified environmental and safety accidents with off-site effects number 0 *Estimated values based on 2012 and 2013 performance HEINEKEN Asia Pacific Sustainability Report

120 Appendix 5: Status of implementing HEINEKEN s Employees and Human Rights Policy by OpCos OpCos Communication of policy to employees Completion of gap analysis between global and local policies Asia Pacific Brewery (Hanoi) Limited No No Asia Pacific Breweries (Singapore) Pte Ltd No No Asia Pacific Brewery (Lanka) Limited No No Cambodia Brewery Limited No No DB Breweries Limited Yes Yes Guangzhou Asia Pacific Brewery Co Ltd No No Grande Brasserie de Nouvelle Caledonie S. A. Yes No Hainan Asia Pacific Brewery Company Ltd Yes Yes Heineken Asia Pacific Export Pte Ltd No No Heineken Asia Pacific Pte. Ltd. Yes Yes Heineken Hong Kong Limited Yes No Heineken Kirin K. K. Yes Yes Heineken Korea Inc. Yes Yes Heineken Brouwerijen B.V. Taiwan branch No No Heineken-APB (Shanghai) Co Ltd No No Lao Asia Pacific Breweries Ltd No No Mongolian Beverages Company Pte. Ltd. No No PT Multi Bintang Indonesia Tbk Yes No Solomon Breweries Limited No No South Pacific Brewery Limited No No Thai Asia Pacific Brewery Co. Ltd Yes No Vietnam Brewery Limited No Yes HEINEKEN Asia Pacific Sustainability Report

121 Appendix 6: Operational safety data on production units in Q HEINEKEN Asia Pacific: breweries in scope for operational health and safety reporting Parameters Unit Q Fatalities of company personnel Cases 0 Fatalities of contractor personnel Cases 0 Fatalities of company personnel in commuting Cases 0 Accidents of company personnel Cases 10 Accidents of contractor personnel Cases 6 Lost days of company personnel Days 118 Workforce (FTE) FTE s 2,682 Performance indicators Achieved Accident frequency Cases/100 FTE 0.4 Accident severity Days/100 FTE 4.4 HEINEKEN Asia Pacific Sustainability Report

122 Reference information Heineken Asia Pacific Pte. Ltd. Regional Corporate Relations 9 North Buona Vista Drive, #12-01 The Metropolis Tower 1, Singapore Telephone: Fax: Read more about our sustainability efforts at HEINEKEN Asia Pacific. Let us know your thoughts Where do you think we could do better? We welcome your views and suggestions in our sustainability journey. us at Sustainability@heineken.com Mark Campbell Regional Corporate Relations Director Janet Neo Regional Sustainability Lead HEINEKEN Asia Pacific Sustainability Report