HEINEKEN Ireland Sustainability Report Brewing a Better Future

Transcription

1 HEINEKEN Ireland Brewing a Better Future Improve Empower Impact

2 Welcome Our Summary HEINEKEN Ireland Limited is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world. Our principal brand is Heineken, which is Ireland s number 1 selling lager. We also market and sell an extensive beer portfolio in the Irish marketplace, comprising of Heineken, Coors Light, Amstel, Fosters, Beamish Stout, Murphy s Irish Stout and a full range of speciality beers including Sol, Tiger, Desperados, Paulaner, Moretti, Żywiec and Affligem. Our long-term aspiration is to be Ireland s Greenest Brewer. We are A proud, independent, global brewer committed to surprising and exciting consumers everywhere We value A passion for quality, enjoyment of life, respect for people and respect for our environment We want To be Ireland s greenest and leading lager supplier with Heineken and with a full brand portfolio Contents Foreword 01 Brewing a Better Future 02 Value chain 04 What we said and what we ve done 06 Green Brewer 08 Green Commerce 10 Engaging Employees 12 Heineken Cares 14 Responsible Consumption 16 Partnerships for Progress 18 Enabling our journey 20 Stakeholder engagement and dialogue 21 The years ahead 22 1 IN EVERY 2 PINTS OF LAGER CONSUMED IN IRELAND IS Heineken Heineken IS IRELAND S NO. 1 LAGER BRAND

3 HEINEKEN Ireland 01 Managing Director Foreword Embracing change Historically, our brewery since its foundation in 1856 was driven by the desire to create a successful, sustainable business that wasn t just financially successful but also made a positive contribution to society as a whole. We have shown we are prepared to take responsibility and to lead. Now it is time to move on to the next phase. Maggie Timoney Managing Director HEINEKEN Ireland In the last 156 years, this approach has served us well. It continues to do so today and it will remain our approach into the future. HEINEKEN Ireland s success has always been inextricably linked to the well being of the communities in which we operate. Recognising that we are part of the fabric of society, we seek to grow sustainably and to focus on good stewardship of our environment. I am delighted to report that HEINEKEN Ireland is making progress in this regard. We have worked hard to achieve ambitious sustainability targets over the last number of years and our focus is unwavering. The world is changing. Climate change, population growth, increasing demand for energy and water scarcity are real issues that are forcing society as a whole to think and act differently. As a leader in that society, we are also taking responsibility for our impact and working hard to ensure a sustainable future. Since 2010, the foundations of our Brewing a Better Future programme have been put in place. We have shown that we are prepared to take responsibility and to lead. We continue to have a strategic focus to support local suppliers and distributors. In 2012 we supported over 750 Irish farming households, sourcing our entire malt requirement locally. In 2012 our supplier code was signed by 98% of our suppliers, thus spreading the influence and impact of our actions and strengthening the platform for continued growth and development of our sustainability programme. Specialist teams throughout our operations are focussed on gaining, maintaining and growing efficiency in all aspects of our business in order to better manage the natural resources we rely on such as water and energy. As part of this cycle, we exercise great care when it comes to waste. In 2012 we achieved a total waste efficiency rate of 99.8% on site. We work closely with our industry colleagues in the area of alcohol related harm and encourage community activity through volunteerism, which is now an integral part of our company culture. While we have achieved much we continue to grow our efforts and create opportunities to further develop and improve our sustainability performance. Going forward we will continue and further intensify our activities in order to achieve our Brewing a Better Future ambitions. Outlined in this report are our four focus areas for the coming three years: water, sourcing, CO 2 and responsible consumption. These reflect the material areas for our business and society where we can have the greatest impact. At HEINEKEN Ireland all of our senior managers are committed to achieving ambitious sustainability targets. In turn we are committed to sharing our vision and progress and being transparent about how we want to see our business grown sustainably as part of the society in which we live and work. Working together with our stakeholders, I am confident that we will achieve our vision of growing responsibly and achieve our ambitions. Thank you for being part of our conversation as we strive to be the greenest brewer in Ireland. Maggie Timoney Managing Director HEINEKEN Ireland For full details on the sustainability progress of HEINEKEN N.V. see our online report.

4 02 HEINEKEN Ireland Overview Brewing a Better Future Brewing a Better Future is HEINEKEN s long-term integrated approach to creating genuine shared value for all our stakeholders. Sustainability is part of how we manage our business. Brewing a Better Future was introduced in April 2010 and born out of close discussion with our stakeholders. It has provided the Company with a roadmap and reflects our ambition to become an even greener business. Brewing a Better Future To be the World s Greenest Brewer Improve Empower Impact Continuously improve the environmental impact of our brands and business Empower our people and the communities in which we operate Positively impact the role of beer in society Green Brewer Green Commerce Engaging Employees HEINEKEN Cares Responsible Consumption Partnerships for Progress Governance, Senior management incentives, Reporting and transparency, Supplier Code, Communication and engagement

5 HEINEKEN Ireland 03 Governance Brewing a Better Future is governed by our Executive board. Headed by our Managing Director, the Executive Board takes ownership for the delivery of BaBF plans and targets, and acts as a sounding board on such matters for the BaBF team in the company. On a day-to-day basis, Brewing a Better Future is governed by a team of representatives from the Supply Chain, Commerce, HR, Finance and Corporate Relations functions. The team is chaired by the Corporate Relations Manager. This sustainability committee drafts and implements the three-year sustainability plan, which is an integral part of the long-term business plan of the company. Progress and issues relating to Brewing a Better Future are regularly on the agenda of the Executive Committee and on the agenda of every management team in our operating businesses. Enabling our business priorities Brewing a Better Future is integral to our business. As a result, we have spent the past three years building sustainability into our processes, systems, and the way we think and act. Our business priorities are tightly integrated with this sustainability journey. Balancing business with sustainability Through the implementation of our Supplier Code we are embedding our sustainability values deep into our supply chain. We recognise, however, that we cannot grow without reference to and regard for society as well. That s why the responsible consumption element of Brewing a Better Future is critical to our business priorities. Heineken is our core brand, and is at the heart of both our commercial and responsible consumption activities. Given that Heineken is Ireland s leading lager, we have a responsibility to make moderate drinking aspirational. We also work to invest in active partnerships, which we see as a critical, powerful and necessary approach to addressing the complex issue of harmful drinking. Our social commitments where we have made significant investments in recent years have provided us with opportunities to talk to consumers about enjoying all our brands in moderation. Turn the page for an overview of how we target improvements throughout the value chain. Our Brewing a Better Future team Left to right; Declan Farmer, Corporate Relations Manager; Olive Grimley, Health & Safety Manager; Declan Keegan, Logistics Manager; Frank Maher, Technical Services Manager; Michelle Walsh, CSR Manager Looking ahead to Brewing a Better Future in , we have reviewed our priorities and created a more focused sustainability agenda. Read more on pages 22 and 23.

6 04 HEINEKEN Ireland Overview Value chain From Barley to Bar, we target improvements throughout the value chain. We also calculated our carbon footprint for our value chain to better understand the hotspots and identify areas for improvement. Agriculture Malting Brewing Packaging materials Growing crops Our main raw materials are barley and hops. In % of pale malted barley used by HEINEKEN Ireland was Irish grown Malting barley All our barley is malted in locally based Irish malteries who have signed up to the HEINEKEN sustainable supplier code. At HEINEKEN Ireland all of our malt requirements for 2012 were sourced locally, supporting in excess of 750 farm households and injecting over 4m into the agricultural economy. Brewing beer The brewing process also consumes energy and water. Reducing energy consumption means increasing energy efficiency. Water reduction is achieved by optimizing every stage of the brewing process. HEINEKEN Ireland is a leading water efficient brewery amongst the HEINEKEN group with a water consumption of 3.1 hl/hl in 2012, a 6% reduction since the launch of the BaBF program in Producing bottles, cans and kegs Beer is packaged in cans, bottles and kegs. HEINEKEN Ireland constantly reviews the design and evaluates opportunities to increase our recycling and reuse rates in our efforts to improve the impact of packaging on our environment.

7 HEINEKEN Ireland 05 Carbon Footprint Breakdown of HEINEKEN Ireland (Breakdown of emissions from Barley to Bar) Agricultre Malting 10% 15% 14% Brewing Packaging 10% 10% Distribution Cooling 41% Distribution of beer Customers Consumers Distribution After the beer is packaged, it is distributed to our warehouses and customers on a national basis by land. On an ongoing basis, we endeavor to measure and monitor transportation models and fuel efficiencies within our distribution stream in our efforts to minimize our impact on the environment. Sustainability is included as a pre requisite in all tenders for transport and transportation contracts as part of our sustainable distribution policy. Cooling and recycling Beer is consumed cold and thus cooled at the point of consumption via fridges or draught equipment. For all new fridges purchased by HEINEKEN we have defined green standards with which they have to comply. Our new fridges in the marketplace have resulted in a 35% reduction in energy usage for all our customers. Responsible consumption As Ireland s leading lager brewery we actively take the lead in encouraging consumers of legal drinking age to enjoy our products responsibly. In doing so, we continuously engage with key stakeholders, commercial and retail partners who market, sell and serve our products to promote the responsible consumption of our products.

8 06 HEINEKEN Ireland Overview What we said and what we ve done What we said we will do by 2012 What we ve done in 2012 Green Brewer Total specific energy consumption < MJ/hl Average greenhouse gas emission < 5.9 kg CO 2 -eq/hl for breweries in scope Specific water consumption < 3. 2 hl/hl Achieved. We achieved MJ/hl. This reduction has been achieved through focus and investment on heat recovery opportunities in 2012 Achieved. We achieved 5.6kg CO 2 -eq/hl Achieved. We achieved 3.1hl/hl. HEINEKEN Ireland is recognised as being one of the most water efficient breweries in HEINEKEN N.V. Green Commerce All new purchased fridges to be based on green technology, if legally and technically possible Evaluation criteria for new product innovations introduced in all regions Develop and execute a baseline carbon footprint model Achieved. We achieved a compliance rate of 100%. All our fridges purchased in 2012 are based on green technology Achieved. In several stages of the innovation process, we have embedded the environmental requirements. We look at the most relevant characteristics for our product category to assess and quantify the results Achieved. HEINEKEN Ireland has established a carbon benchmark which allows us to make improvement plans where it matters most Engaging Employees Accident frequency target for Supply Chain < 1.2 accidents/100 FTEs Safety targets set for non-production- related activities Employees & Human Rights Policy adopted and implemented At HEINEKEN Ireland we strive to achieve zero accidents saw a slight increase in our accident frequency rate from 4.4 to 4.5 cases/100fte. We continue to focus on a reduction of this measurement. Achieved. We set reduction targets for all our operations, striving ultimately for zero accidents Achieved. The policy was adopted and implementation begun HEINEKEN Cares The continuous embedding of employee volunteerism into the company culture Achieved. V-Day is now in its second year with all employees engaging in voluntary activities in aid of the Simon Community giving a total of 2,000 community hours on an annual basis Local sourcing of materials and services Achieved. Malt requirements sourced locally. In excess of 100m invested in local economy, supporting near 1,000 local suppliers Brewery operations contain a well defined standard of healthcare plans Achieved. Brewery has a well defined health care plan for its employees

9 HEINEKEN Ireland 07 What we said we will do by 2012 What we ve done in 2012 Responsible Consumption Develop Enjoy Heineken Responsibly (EHR) campaign to include on-trade execution; apply EHR in Heineken communication materials and primary merchandise Develop and deliver a workshop to 100% of commerce/marketing employees that supports our Rules on Responsible Commercial Communication (RCC) Partnerships for Progress HEINEKEN Ireland to have a partnership with a third party to address alcohol abuse Criteria for successful partnerships developed and existing partnerships reviewed Initiatives / Actions on Harmful Drinking projects implemented Achieved. EHR logo is included in all Heineken communication tools Achieved. Responsible Digital Commercial Communication module created and delivered to all relevant employees. All commercial / marketing employees attend an industry program on advertising codes/legislation of marketplace Partnership in place with Simon - Pilot Alcohol Addiction Aftercare project now established as a part of the rehabilitation process accessible to Simon service users Partially achieved. Partnership criteria in progress of being finalised. Achieved. Through its involvement in MEAS, a number of high profile TV and print initiatives have been implemented to promote the responsible consumption of alcohol Enablers Company to have a three-year sustainability plan Achieved Company to issue a Sustainability Report Renewed Supplier Code based on new approach by mid-2010 In 2010, introduce incentives for all senior managers on sustainability target HEINEKEN Ireland is committed to publishing a Sustainability Report on a annual basis and has being doing so since 2010 Achieved. At the end of 2012, in excess of 98% of our suppliers had signed the Supplier Code Achieved. Incentive targets were introduced. In 2012 senior managers had an incentive on sustainability

10 08 HEINEKEN Ireland Improve Green Brewer At HEINEKEN Ireland we are working hard to increase the water and energy efficiency of our operations. In 2012, we made good progress and are on target to achieve the goals we set for As part of a global company there comes a local responsibility to ensure efficient use of energy and water. PJ Tierney Brewery Manager 11 % LOWER SPECIFIC CO2 EMISSIONS 10 % 6 % REDUCTION IN SPECIFIC TOTAL ENERGY CONSUMPTION REDUCTION IN SPECIFIC WATER CONSUMPTION 99.8% TOTAL WASTE RECYCLING RATE

11 HEINEKEN Ireland 09 What we said and what we ve done Total specific energy consumption < MJ/hl We achieved MJ/hl. The reduction in the main has been achieved primarily through focus and investments on heat recovery projects in 2012 Average greenhouse gas emission < 5.9 kg CO 2 -eq/hl for breweries in scope We achieved 5.6 kg CO 2 -eq/hl Specific water consumption < 3.2 hl/hl We achieved 3.1 hl/hl Energy The total energy needed to produce 1 hectolitre (hl) of beer improved by 10% from Mj/hl in 2011 to MJ/hl in This is as a result of focused efforts to continue to yield consumption reductions year on year. Total specific energy consumption MJ/hl beer Diversifying the energy mix We improved our performance in specific greenhouse gas emissions with a reduction from 6.3 kg CO 2 -eq/hl in 2011 to 5.6 kg CO 2 -eq/hl in This is primarily the result of thermal energy-saving activities at our production units. Specific greenhouse gas emissions kg CO 2 /hl beer Water Water is essential for both our operations and the community in which we operate. For HEINEKEN Ireland it currently takes 3.1 hl of water to produce 1 hl of beer. Within the Global HEINEKEN Group we are among the leaders in water efficiency. We are and remain committed to using even less water and we continue to explore ways to make further reductions in this regard. Specific water consumption hl/hl beer Waste management Our focus is not to create waste, and we continue to focus on recycling throughout our operation as we are a near fully recyclable site. Everyone in our organization acknowledges their responsibility with respect to waste with a focus on segregation and recycling. Our waste and by products are recycled in the following manner Brewer s grains Yeast Paper Glass bottle Metal packaging Animal feed component Animal feed component or food flavouring for human consumption paper recycling Glass manufacturing Various metal products Water consumption in our brewery decreased by 6% in 2012 to 3.1 hectoliters of water for each hectoliter of beer, making Ireland one of the most water-efficient operations within the HEINEKEN group.

12 10 HEINEKEN Ireland Improve Green Commerce Our focus in 2012 has been on reducing the total carbon footprint of our products across the value chain. We are increasingly able to focus our efforts on areas of our business that have the greatest environmental impact thanks to our carbon footprint benchmarking Pablo Pomares Finance Director 100% TOTAL COMPANY CAR FLEET IS RUN ON DIESEL 100% OF NEW FRIDGES ARE GREEN 118 IDEAS SUBMITTED TO OUR OPEN INNOVATION PLATFORM 3 million RECYCLABLE GLASSES SUPPLIED FOR EVENTS THROUGHOUT IRELAND IN 2012

13 HEINEKEN Ireland 11 What we said and what we ve done All new purchased fridges to be based on green technology We achieved a compliance rate of 100% Evaluation criteria for new product innovations introduced In several stages of the innovation process, we have embedded the environmental requirements Develop and execute a baseline carbon footprint model We created a model covering the entire value chain and calculated our carbon footprint from barley to bar Packaging Our new packaging policy centres on weight reduction, carbon footprint, efficient sourcing and the optimisation of new packaging during its design phase. At HEINEKEN Ireland we are continuously reviewing methods to improve and reduce the weight of our packaging. Following the introduction of our lightweight Heineken 33cl bottle in 2010 we continue to innovate while maintaining strict quality requirements and consumer needs. Testament to this was a weight reduction project with Beamish and Foster 50CL aluminum cans which resulted in a 1.4% reduction of CO 2 eq/l. All our on trade-packaging units are 100% returnable Cooling Cooling is essential to the consumer s experience of our beer, but is also a significant contributor to our total carbon footprint. To reduce this, we have committed to installing only eco-friendly fridges. In 2012, 100% of our new fridges had one or more green characteristics, resulting in an average energy saving of 35%. By using hydrocarbon refrigerants, these coolers consume 15% less energy. In addition the redesign of the Heineken Extra Cold frozen column resulted in a 40% increase in energy efficiency. Distribution We continue to monitor the effectiveness of our distribution operations in an effort to reduce the impact on the environment. In 2011 we established a baseline of kgco2/hl traded against which we focus our efforts to achieve a reduction year on year Testament to this is load control, truck utilization and route planning all of which contribute to our ongoing and committed efforts to implement our sustainable distribution policy. Innovation On an ongoing basis we encourage employees to draft and propose innovations in all aspects of packaging and areas affecting our business. Testament to this in 2012 a total of 118 ideas were generated in HEINEKEN Ireland which we shared with global as part of an innovation initiative. Green events: inspiring sustainability Heineken -supported music events offer a great opportunity for us to inspire event partners and consumers to act sustainably. In 2011, we adopted a corporate toolkit to stimulate consistently green Heineken events. It includes ideas to reduce, reuse and recycle. In partnership with event promoters, we endeavor to promote individual responsibility with respect to waste and with a focus on segregation and recycling. The Heineken Eco Exchange at the Electric Picnic festival 2012 was an eco-initiative to reward eco-conscious festival goers with prizes for returning 20 used plastic pint glasses. This was a popular initiative to help limit the environmental impact of the festival.

14 12 HEINEKEN Ireland Empower Engaging Employees As part of our Brewing a Better Future approach, we focus on empowering our people and the communities in which we operate. Our internal structures and policies safeguard employees and human rights, and help to ensure a safe, healthy working environment for all. Our employees bring Brewing a Better Future to life. We cannot meet any of our commitments unless they understand and are fully engaged with the journey we are on. Denise Burke HR Director AT HEINEKEN IRELAND FOCUS IS GIVEN TO ON-LINE SAFETY AWARENESS TRAINING 700 DAYS TRAINING COMPLETED BY HEINEKEN EMPLOYEES IN ,000 VOLUNTARY EMPLOYEE HOURS WITH THE SIMON COMMUNITIES

15 HEINEKEN Ireland 13 What we said and what we ve done Accident frequency target for Supply Chain < 1.2 accidents/100 FTEs At HEINEKEN Ireland we strive to achieve zero accidents saw a slight increase in our accident frequency rate from 4.4 to 4.5 cases/100fte. We continue to focus on a reduction of this measurement. Safety targets set for non-productionrelated activities We set reduction targets for all our operations, striving ultimately for zero accidents Employees & Human Rights Policy adopted, implemented and audited The policy was implemented and audited against current practice with no gaps found. Health and safety At HEINEKEN Ireland we want to ensure that our employees and the people we work with operate in a healthy and safe environment. While 2012 saw a slight increase in our accident frequency rate from 4.4 to 4.5 cases/100 FTE we continue to focus on a reduction of this measurement and to achieve a zero accident rate within our operation. In 2012 extensive health and safety, training was carried out. This resulted in an increase in reported near misses indicating heightened Health & Safety awareness amongst employees. Accident frequency in production accidents / 100 FTE Employees and human rights The new HEINEKEN Employees & Human Rights Policy came into effect in 2012 which endorses the principles enshrined within the Universal Declaration of Human Rights and the Core Conventions of the International Labour Organisation. The policy lays out 11 clear standards on employees and human rights, including non-discrimination, forced labour and harassment. The Policy was adopted, published and shared with all employees at HEINEKEN Ireland. Volunteering and fundraising We encourage all employees to become actively involved in their communities. In 2012, our employees dedicated 2,000 hours of their time to local Simon Community project work. Simon, whose vision is of a society without homelessness continues to be the preferred beneficiary of the Company-sponsored volunteering / fundraising activities which in this context ranged from upgrading emergency housing, donating clothing to fundraising, gardening and spending quality time with users of Simon services. Extensive health & safety training leading to increased levels of responsibility and and heightened levels of awareness amongst employees resulted in the record for accident free days being exceeded at HEINEKEN Ireland in 2012.

16 14 HEINEKEN Ireland Empower HEINEKEN Cares Through our local sourcing initiatives, employment opportunities and direct financial support, we have a long history of contributing to the communities in which we operate. Our HEINEKEN Cares approach empowers the economic and physical community we operate in and the people within them. Creating shared value for all our stakeholders must be at the heart of our approach to sustainability. Michelle Walsh CSR Manager IN 2012 WE WORKED WITH 1,000 LOCAL SUPPLIERS GENERATING AN ESTIMATED SPEND OF 100 MILLION IN THE LOCAL ECONOMY MULTIPLE COMMUNITY & CHARITABLE PROGRAMS SUPPORTED THROUGH THE HEINEKEN CARES FUND 35,000 JOBS ARE LINKED TO OUR COMPANY

17 HEINEKEN Ireland 15 What we said and what we ve done Evaluate all local suppliers for compliance to our sustainable sourcing policy. 98% have signed up to our supplier code. Evaluation process is ongoing. Local sourcing policy where viable In 2012 all malt requirements were sourced locally. More than 100m spent in local economy Operations that do not meet our standard of healthcare to supply improvement plans Standards of healthcare met and weeklong health and wellbeing fair attended by all employees. Sustainable agriculture Our local sourcing incentives play a key role in economically and socially empowering communities. A strategic focus remains in our company to support local suppliers and farmers, which in turn generates employment and has a positive economic impact on local communities. In 2010, HEINEKEN N.V. joined the Sustainable Agriculture Initiative (SAI), of which Bord Bia (The Irish Food Board) is an affiliate member. The SAI is a food industry organisation of multinational companies working towards a more sustainable food chain. Locally, HEINEKEN Ireland are currently in the process of completing membership requirements to Origin Green, a unique sustainability development programme developed by Bord Bia (The Irish Food Board) to internationally demonstrate the commitment of Irish food and drink producers to operating sustainably. In 2012 all our malt requirements for were sourced locally, supporting in excess of 750 farm households and injecting over 4m into the local agricultural economy. Local Sourcing In 2012, further testament to our local sourcing commitment, we worked with near 1,000 local suppliers creating an estimated spend by HEINEKEN Ireland in the local economy of 100m Heineken Social Investment Programs HEINEKEN Ireland places great emphasis on its corporate citizenship and demonstrates this through social investment, commitment to volunteer programs and other community donations of both resources and financial support. Through our HEINEKEN Cares Fund we support a wide range of charities. In addition to this we support the Simon Communities, an organisation dedicated to combating homelessness, nationwide. Simon is also our community partner within our BaBF programme. Significant contributions are also made to local tourism through profile building, support to local public houses, festival and sport sponsorship, many of which are conducted in local communities throughout Ireland. The HEINEKEN Cup, which is one of Europe s premier pan European rugby tournaments, creates a significant positive socio-economic impact. Matches are played in all four provinces in Ireland delivering tremendous support to local tourism, business and the community. Being a responsible corporate citizen requires giving back to the communities in which we operate. The HEINEKEN Cares Fund supported multiple local and national charities in 2012.

18 16 HEINEKEN Ireland Impact Responsible consumption Beer is a natural product enjoyed by millions of people around the world. It is, and can be, part of a balanced lifestyle when consumed responsibly. As one of the world s leading brewers, we actively promote the enjoyment of beer in moderation. As an industry leader, we have the responsibility to promote moderate drinking. As a brand builder, we have the opportunity to make it aspirational. Sharon Walsh Marketing Director HEINEKEN IRELAND HAS A DEDICATED RESPONSIBLE CONSUMPTION WEBSITE SUNRISE CAMPAIGN BROADCAST ON DIGITAL MEDIA 100% Heineken PACKAGING CARRIES A RESPONSIBILITY MESSAGE

19 HEINEKEN Ireland 17 What we said and what we ve done Ensure visibility of Enjoy Heineken Responsibly at all major events 33% of all signage at major events & festivals is dedicated to responsibility messaging Create We Love Beer ambassadors to promote category knowledge HEINEKEN Ireland is amongst the first in the HEINEKEN network to graduate We Love Beer ambassadors in 2012 Develop and deliver a workshop to 100% of commerce/marketing employees Responsible Digital Commercial Communication module developed and delivered to 100% of relevant employees Encouraging responsible consumption through our brands We are proud of our many international premium, regional, local and speciality beer brands, and we look for opportunities to talk to consumers about enjoying them in moderation. As Ireland s leading lager brewery we actively take the lead in encouraging consumers of legal drinking age to enjoy our products responsibly. In doing so, we continuously engage with key stakeholders, commercial and retail partners who market, sell and serve our products to promote the responsible consumption of our products. The Enjoy Heineken Responsibly (EHR) campaign began in 2004, and has grown from a phrase on packaging to a global integrated campaign. This includes a dedicated website, advertising boarding at major sponsorships, and a logo displayed on commercial communication and packaging. The Sunrise campaign, launched in 2011 marked a step change in the way that responsibility advertising is developed: the subject of the advert refuses a bottle of Heineken in favour of water; and the tagline Sunrise belongs to moderate drinkers encourages aspirational behavior among adult consumers. The advert broadcasts on digital media in Ireland. laut aspitatem. Responsible marketing Our Rules on Responsible Commercial Communication together with the self regulatory codes in the marketplace, help everyone involved in marketing and selling our products to ensure we do not contribute to excessive consumption or misuse. In recognition of the need for more detailed guidance in the digital environment in June 2012 HEINEKEN Ireland introduced new rules on Digital Commercial Communication. These cover areas such as video use, online privacy and security, with a specific focus on age verification, particularly in social media. In addition the pre-vetting service of Central Copy Clearance Ireland CCCI which provides an independent pre-publication vetting service for all mainstream alcohol related advertising, ensures our advertising complies at all times with the needs of the marketplace. Our employees as ambassadors At HEINEKEN Ireland all employees attended dedicated training courses on Cool@Work, our workplace alcohol information, prevention and support programme, in In 2012, we also launched We Love Beer, an employee ambassadorship programme. Beer is our business and this programme assists in educating our employees in all aspects about beer, it s draftsmanship and heritage together with the need top consume beer responsible and in moderation. New HEINEKEN Rules on Digital Commercial Communication ensure compliance in digital media, reinforcing our commitment to limiting young people s exposure to alcohol marketing

20 18 HEINEKEN Ireland Impact Partnerships for Progress As an industry leader, we have a responsibility to recognise the problem of alcohol abuse. In encouraging consumers to make positive choices in relation to alcohol consumption, we work closely with industry groups, governments, non-governmental organisations and third parties. The concept of partnership runs through our whole approach to a sustainable future. Making a real contribution to reducing alcoholrelated harm is no exception. Declan Farmer Corporate Relations Manager 7 TH YEAR OF THE DRINKAWARE.IE INITIATIVE, ONE OF THE LEADING CONSUMER ALCOHOL INFORMATION PORTALS IN IRELAND HEINEKEN IRELAND HAS A PARTNERSHIP WITH THE SIMON COMMUNITY FOCUSED ON REDUCING ALCOHOL RELATED HARM 64% OF PEOPLE POLLED ASSOCIATE DRINKAWARE.IE ADVERTISEMENTS WITH ALCOHOL EDUCATION & MODERATION (MB RESEARCH 2013)

21 HEINEKEN Ireland 19 What we said and what we ve done HEINEKEN Ireland to have a partnership with a third party on alcohol abuse. HEINEKEN Ireland have a relevant third party partnership with the Cork Simon Community to work together to combat alcohol misuse amongst the homeless in our society. Criteria for successful partnerships developed and existing partnerships reviewed Partnership criteria in process of development. Global Actions on Harmful Drinking projects implemented in key markets Achieved. Globally HEINEKEN was involved in several industry firsts which serve to inspire and support our local Irish campaigns saw HEINEKEN Ireland s 2nd V-Day for The Simon Communities of Ireland. One of the many results from the day is that we are now working with the Cork Simon Community to support a pilot Alcohol Addiction Aftercare & Support program. Our Partnerships for Progress program continues to play a vital role in promoting the responsible consumption of alcohol in the Irish marketplace. It encompasses industry groups; governments, NGOs, third parties, consumer groups, retailers, hotel bar and restaurant owners and community groups with whom we work to encourage responsible consumption of our products. Industry Partnerships In 2012 we continued to work with other industry leaders to combat alcohol related harm. Our ongoing support for the five-year 20 million consumer focused drinkaware campaign is testament to our efforts aimed at changing and challenging the culture of excessive drinking in our marketplace. Drinkaware campaigns in 2012 included: Rethinking our Drinking Campaign Reclaim your weekend The Morning After campaign Whilst awareness of the need to drink alcohol in moderation will remain a focus of campaign activity, following the 2012 campaigns the association of alcohol moderation advertising with MEAS/drinkaware.ie is at its highest level to date, and is highest amongst the target audience. In partnership with MEAS (Mature Enjoyment of Alcohol Society), ABFI (Alcohol Beverage Federation of Ireland) and the IBA (Irish Brewers Association) Heineken Ireland plays a lead part in the promotion of responsible consumption of alcohol in the marketplace together with ensuring the existence of a balanced stakeholder debate on issues affecting our industry. MEAS and the drinkaware consumer campaigns are representative of a consumer-focused industry partnership initiative aimed at changing the culture of excessive drinking. They also promote the responsible use of alcohol and challenge anti social behaviors. Local partnerships Initiated in 2010 HEINEKEN Ireland continues to nurture a meaningful partnership with Simon, a national NGO dedicated to working in solidarity with men and women who are homeless, or at risk of becoming homeless, offering housing and support in their journey back to independent or supported living and campaigning for a society without homelessness. In a 2010 Health Survey of service users conducted during the last week of July, Cork Simon looked at alcohol and drug use amongst its service users and residents and discovered that 83% of people, using their services used alcohol and 48% reported complications as a result of alcohol. Our partnership allows us the opportunity to help those in our community most affected by alcohol misuse. Building on our work to date in 2012 we initiated an Alcohol Addiction Aftercare Housing & Support programme in partnership with Simon. This pilot programme will provide an alcohol free environment offering people a safe place to consolidate their recovery and make plans for the future.

22 20 HEINEKEN Ireland Other information Enabling our journey Brewing a Better Future will only succeed if the preconditions for success are defined and in place. With our enablers, we are making sure that our culture and organisation can support our ambitions. Extending our influence through our Supplier Code We are committed to making a positive contribution to society through our global & local operations. We expect all our suppliers to help us to fulfil this commitment by actively supporting and respecting our values in their own business practice. By signing the Supplier Code, suppliers agree to comply with key elements of integrity, environment and human rights. At the end of 2012, 98% of our local suppliers had signed the Supplier Code. Building sustainability into performance plans We have made sustainability one of the five merit areas in senior managers annual performance appraisals. This means that sustainability becomes expected behaviour rather than an ad-hoc activity linked to a short-term cash bonus. In 2012, All senior managers had sustainability targets included in their annual performance appraisal objectives. Better reporting with Green Gauge 2.0 Launched in 2011, the Green Gauge scorecard allows us to monitor and report quarterly progress on our various sustainability initiatives at all levels of the business. To improve efficiency and reporting quality, Green Gauge 2.0 was rolled out in This electronic platform is quicker, more accurate and tightly integrated with other existing reporting tools within HEINEKEN. Local sustainability reports Demonstrating our commitment towards greater transparency, we are committed in reporting our performance against our ambitions to being the greenest brewery in the marketplace. In that regard we continue ad remain committed to publishing an annual sustainability report, which can also be viewed online on our website. Benchmarks and achievements HEINEKEN Ireland was awarded a citation from Chambers Ireland in 2013 for Excellence in Community Volunteering, in recognition of its V-Day 2012 initiative. HEINEKEN Ireland was also recognised internally, within the HEINEKEN Global Group, for it s exceptional sustainability performance in 2012.

23 HEINEKEN Ireland 21 Stakeholder engagement and dialogue Crucial to our Brewing a Better Future journey are our stakeholders. They help us to stay focused and tell us when they feel we are moving off track. We communicate and engage with stakeholders in three ways: reputation research, expert meetings and ongoing stakeholder dialogue. HEINEKEN s Reputation Research survey gives a wide range of stakeholders, including employees, customers, governments and NGOs, the opportunity to tell us what they think. Feedback shows that, overall, HEINEKEN Ireland is seen as a trusted and respected company that delivers on its promises. However, it also identifies areas for improvement which once identified are given due attention and focus. It is our ambition to improve our reputation-scoring year on year by listening carefully to our stakeholders and acting on their feedback. Brewing a Better Future Review In January 2012, a process of reviewing the Brewing a Better Future agenda was initiated. The four focus area for the coming three years are water, sourcing, CO 2 and responsible consumption. Working with partners Globally HEINEKEN believes that more can be achieved by working with partners and stakeholders than on our own. The company is actively engaged in a growing number of organisations that support our aims for both business and society. HEINEKEN N.V. is a signatory partner to the UN Global Compact, and an Industry Partner with the World Economic Forum. The company is also a founding member of Green Freight Europe, an innovative initiative focused on reducing the environmental impact of European road transport, which was officially launched in March Other HEINEKEN N.V. global memberships include Sustainable Agriculture Initiative (SAI), a platform that supports the development of sustainable agriculture worldwide; Beverage Industry Environmental Roundtable (BIER), a partnership of global beverage companies focusing on water stewardship, energy and climate change, and stakeholder engagement; and International Center for Alcohol Policies (ICAP), of which HEINEKEN is currently the chair. This engagement on a global level works together with local ambition and activity to inspire a truly world class sustainability programme which HEINEKEN Ireland is proud to be fully committed to on both local and the global stage. STRONG REPUTATION OVERALL REPUTATION, OUTPERFORMING INDUSTRY PEERS IN STAKEHOLDER FAVOURABILITY AND MOST DIMENSIONS

24 22 HEINEKEN Ireland Other information The years ahead We at HEINEKEN Ireland are part of HEINEKEN N.V. and we work together as a team to achieve our sustainability goals. HEINEKEN S global commitments are our commitments. Based on dialogue with our stakeholders and insight into global trends, four key areas have been identified on which a more focused second phase of Brewing a Better Future will be built: water, CO 2, sourcing and responsible consumption. Each area is underpinned by our ways of working living by our values, leading by example, and working together throughout the HEINEKEN global network to make a difference. Agriculture Malting Brewing Packaging Distribution Focus areas Water CO2 Sourcing Responsible consumption Ways of working Values and Behaviours

25 Global trends: how they impact us, how we impact them The world is facing unprecedented global challenges, chief among them being population growth, climate change, access to natural resources, and food and water scarcity. These challenges will directly and indirectly impact businesses, both by posing a threat to the future availability of key resources and through increasingly demanding legislation. HEINEKEN, too, will be affected if we do not act to mitigate the impact of these risks on our own organisation. At the same time, we recognise the economic and social opportunities that lie in creating real, shared value for all our stakeholders. Defining our priorities In 2012, we reviewed global trends as basis for defining our priorities. To help us in our assessment, we hosted a series of expert meetings between February and April A broad group of 22 stakeholders met with internal HEINEKEN specialists to share knowledge and insights on our sustainability performance and how we can develop our thinking and plans. Materiality analysis These dialogue sessions were instrumental in helping us to build a prioritised materiality matrix containing the issues, risks and opportunities that are most relevant to our business and stakeholders. Ultimately, we were able to identify the four key focus areas. Each of the areas is supported by a number of concrete commitments. They state clearly our ambitions for 2020 with milestones to be achieved by The 2020 ambitions that were set in 2010 remain unchanged and are integrated into our focused agenda. Looking to the future With our new commitments in place, we are looking proactively to the future to secure our long-term business continuity, while fulfilling our social and environmental obligations. Customer Consumer Our global commitments for 2020 Water Reducing specific water consumption in the breweries by 25% Aiming for water compensation/ balancing by production units in water scarce and distressed areas CO2 Reducing CO2 emissions: in production by 40% of our fridges by 50% of distribution by 20% in Europe and the Americas Let us know your thoughts Which aspects of Brewing a Better Future are working well? Where do you think we could do better? We d love to hear from you, because your feedback will allow us to learn and improve. Declan Farmer Corporate Affairs Manager declan.farmer@heineken.ie Sourcing Deliver 60% of raw materials in Africa via local sourcing Aiming for at least 50% of our main raw materials from sustainable sources Ongoing compliance with our Supplier Code procedure Post: HEINEKEN Murphy Brewery Leitrim Street, Cork, Ireland Responsible consumption Delivering on industry commitments Making responsible consumption aspirational through Heineken The establishment of a measurable partnership aimed at addressing alcohol abuse every market in scope. For full details of our 2020 ambitions and 2015 milestones, read our online report.

26 For more information about HEINEKEN and our sustainability journey: A Heineken Ireland publication HEINEKEN Ireland Murphy Brewery Leitrim Street Cork Ireland Telephone: Fax: