Download - Transformation for Sustainable Growth
2015 Sustainability Report
Transformation for Sustainable Growth
Sustainable Business Operations
Product Excellence and Responsible
Consumption
Sustainable Sourcing
2 3
Our 85 years presence in Nusantara has made us more alive than ever in responding to all the challenges in life and turning them into opportunities. We survived the Second World War, two episodes of monetary crises but still managed to be acknowledged as one of the legendary best-performing companies in Indonesia.
We continue to innovate and develop international quality products and brands that are loved by consumers. We also take pride in the fact that the employees and products of Multi Bintang have become a symbol of hospitality and taste of Indonesia to the world. All of these strengthen us to become a reputable and responsible Indonesian beverage company with portfolio of beer and non alcoholic beverages.
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
Keeping the balance of these three elements is an art that we continue to refine in the past 85 years. It is not easy and simple, but it brings out our best quality which makes everyone who interacts with us can feel enjoyment. That is Multi Bintang. We Brew Enjoyment.
Let’s celebrate the 85 years’ achievement of Multi Bintang, continue to be progressive and give the best to Indonesia.
What keeps us going and makes us 85 years more alive?
Appendices & GRI IndexThe Big Picture Our Focus Areas Values & BehaviorsAppendices & GRI IndexThe Big Picture Our Focus Areas Values & Behaviors
RESPECT
We believe on the importance of giving respect, which is naturally present within each and every person in Multi Bintang. Respect means, among others, we never obliged anyone to consume beer as a sign of loyalty to the company.
Responsibility which in turn makes us so determined, brave and agile in facing challenges; while we continue to uphold the laws and social ethics. This is born out of our responsibility to all stakeholders.
RESPONSIBILITY
The working environment in Multi Bintang encourages us to work together in giving always the best. Those achievements build a sense of pride and create enjoyment in togetherness.Enjoyment is the main reason why people consume the products of Multi Bintang. Enjoyment also explains why we score a high rate of employee engagement. Enjoyment is the social adhesive inherent in all products of Multi Bintang.
ENJOYMENT IN TOGETHERNESS
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
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OUR SUSTAINABILITy REPORT 2015
This Sustainability Report 2015 titled Transformation for Sustainable Growth, summarises PT Multi Bintang Indonesia Tbk (Multi Bintang)’s sustainability progress on “Brewing a Better World”1 in 20152 . Our first Sustainability Report 2014 titled Our Stories on Growing Together with Communities was published last year in October 2014 and we plan to report on annual basis3 . We continue our sustainability initiatives on the topics that we have confidence of the greatest material importance to our Indonesia’s stakeholders and business. We expect this report to serve as a communications tool with our stakeholders and as a performance benchmark Multi Bintang to mark our sustainability progress.
We produce our report in accordance with version 4.0 of the Global Reporting Initiative Guidelines (G4) - Core4. Our sustainability performance is consolidated in the Heineken N.V. 2015 Sustainability Report, which has undergone external assurance by Deloitte Accountants B.V. dated on 6 April 20165 in the Netherlands (see Appendix 1). While we have not sought external assurance for our own report this year, we will consider it as our reporting matures over time6.
Head OfficeTalavera Office Park 20th FloorJl. Let. Jend. TB Simatupang Kav. 22-26Jakarta 12430, IndonesiaJakarta 10032T. 021-7592 4611F. 021-7592 4617
Tangerang BreweryJl. Daan Mogot Km 19,Tangerang 15122, IndonesiaT. 021-619 0108, 545 0750F. 021-619 0190
Sampang Agung Brewery & Non Alcoholic Beverage PlantJl. Raya Mojosari-Pacet Km. 50, Sampang Agung, Kec. Kutorejo,Kab. Mojokerto, Jawa Timur, IndonesiaT. 0321- 592 505F. 0321- 592 508
www.multibintang.co.id
We welcome your feedback on our 2015 sustainability report. Kindly communicate to our Corporate Affairs Division at the following contacts: Email: [email protected]: +62 (21) 7592 4611 (hunting)
1 Brewing a Better World is the HEINEKEN Company Global sustainability framework which is adopted by Multi Bintang for its sustainability approach.
CONTENT
ThE BIG PICTURE
02 85 Years of Brewing Enjoyment
04 New Corporate Identity
06 President Director Foreword
08 About Us & Achievement
11 Financial Performance (Highlights)
13 About Sustainabiliy Reporting
14 Brewing a Better World
20 Our Commitments & What We Have Done
OUR FOCUS AREAS
30 Protecting Water Resources
38 Reducing CO2 Emission
44 Sourcing Sustainability
48 Advocating Responsible Consumption
58 Promoting Health and Safety
64 Growing with Communities
VALUES AND BEhAVIORS
70 Behavior and Culture
72 Our Workfoce
77 Case Studies
GRI G4 Index Table & Appendices
5
To signal PT Multi Bintang Indonesia Tbk (Multi Bintang)’s transformation and updated vision that is to WOW Indonesia with our brands, people and performances, in February 2015 we launched our new corporate identity and named it The Spark. The new logo has a modern and dynamic look that represents the agility and innovativeness of our people, brands and organization.
The five colors of the rejuvenated star logo represent Multi Bintang’s core values, our passion for Indonesia and signify the Company’s new direction.
NEw CORPORATE IDENTITy
vision
mission
To be a reputable and responsible Indonesian beverage company, with a portfolio of leading
brands.
Appendices & GRI IndexThe Big Picture Our Focus Areas Values & Behaviors Appendices & GRI IndexThe Big Picture Our Focus Areas Values & Behaviors
Respect for people & planet
Enjoyment of life
Brands that people love
Part of Indonesia's heritage
Passion for quality in
everything we do
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Sustainable Brands and Partnership In the course of last year, we expanded the participation of our brands in sustainability elements in their consumer communication. We expanded the reach of our communications on responsible consumption to our customers and in a number of our brand activation programs, read the story on page 50.
During 2015 we have also embarked on various new partnerships. We are working with the Indonesia’s Brewers Association (GIMMI) to expand our advocacy on responsible retailing with our customer to ensure that our products are sold to consumers of the legal drinking age. We are keen to expand further our partnership activities in the off-trade. This is also an evident that we continue to make progress on responsible consumption topic despite the recent regulatory restrictions. For a detailed description of our partnership approach, see Spotlight on Partnerships, page 29.
Future ReportingTo conclude, we are confident with the progress we have made in 2015, though we are aware of the challenges ahead. We can only achieve our ambition through the ongoing efforts as well as by continuing to engage and listen carefully to our stakeholders. In order to meet our 2020 commitments, we have created concrete new milestones for 2018. We will report our progress towards these milestones each year in our Sustainability Report. We need to further improve our reporting systems to generate robust data faster than in previous years and will consider to do so by exploring Integrated Reporting in the near future.
Looking ahead, we are optimistic that our business strategic focus aligned with sustainability initiatives will help Multi Bintang to achieve its target. I would like to thank everyone who has supported us on accelerating our sustainability journey.
Michael Chin Kean huatPresident Director
of innovations to respond to evolving tastes and habits. Therefore, we are confident that there will be opportunities for growth across our portfolio which many will be launched in 2016.
Sustainability PerformanceLeading up to our Brewing a Better World commitments for 2020, we made good progress meeting the milestones for 2015 in key focus areas. • We delivered on water reduction and the
implementation of our water balancing project, scheduled in 2016, despite the slight delay following the regulatory restrictions that significantly impacted the operation and performance of our industry.
• Our CO2 emission performance was below our target following drop in production volume. However, we plan to explore a number of emission friendly initiatives e.g. biogas, solar energy as alternative renewable energy for 2016.
• Further on the Green Fridges initiative on replacing conventional cooling systems is on track and will eventually become effective in 2016 and the coming years.
• We continued to expand our partnerships and advocacy with our industry peers and retailers to combat harmful use of alcohol and promote responsible consumption.
• In other commitment areas, we have exceeded our expectation and met our 100% target earlier for compliance with our Supplier Code. We will continue to maintain our compliance in the coming years.
• On health and safety aspect, we achieved all targets: zero accident frequency, reporting, safety e-learning and road safety.
• In addition, we will improve the structure of our community investment program and reporting to ensure that all of our efforts in the area have more impactful results.
For a detailed performance overview, please visit the section “What we said and what we’ve done” on page 20 as well as for the health and safety targets on page 58.
We are delighted to publish our second year of Sustainability Report 2015 titled Transformation for Sustainable Growth as a testimony of our commitment to progressing in our sustainability front. Sustainability is always at the core of Multi Bintang’s business strategy.
In 2015, Indonesia supported the 1.5°C warming cap in the Paris Agreement, instead of previously committed 2°C in its Intended Nationally Determined Contribution (INDC), delivering a crucial contribution to world’s sustainability agenda. In December 2015, nearly 200 countries reached this significant agreement to address climate change, and in October 2015 the United Nations introduced the Sustainable Development Goals (SGDs) designed to end poverty and address a broad set of topics, making sustainable business mainstream. In the coming year we will consider these additional topics in our approach to enhancing our sustainable business.
Last year also was a challenging year for our business operations and financial performance in Indonesia, following the unfavorable economic conditions and the ministerial regulation restricting the sales of beer in minimarkets. These challenges may have affected some of our sustainability programs, that had been planned out for the year, however, it did not stop us to address some critical issues such as
PRESIDENT DIRECTOR'S FOREwORD
the harmful use of alcohol, including underage drinking, the growing concern over illegal bootleg alcohol that we need to tackle as a company and also as a collective industry to ensure our future presence and business sustainability in Indonesia. Our sustainability strategy, Brewing a Better World (BABW), revolves around following six key areas: Water, CO2 Emissions, Responsible Sourcing, Health and Safety, Responsible Consumption and Communities, where we believe we can make a real difference.
As a responsible and reputable beverage company operating in Indonesia, we have a responsibility to contribute to building a better and more prosperous society, by using resources sustainably, minimising any negative impacts of our operations on the environment and the communities around our business operations, and having a positive impact on our stakeholders, including our employees, our customers, business partners and the wider community. We believe that fulfilling these responsibilities is essential for the long-term growth of the business and drive the transformation, that can bring us closer to our vision, and that is to WOW Indonesia with our Brands, People and Performance.
In 2014, Multi Bintang embarked upon a transformation that has seen us change our mission from being a primarily a ‘brewer’ to being a fully-fledged beverage company, driving us to innovate with our operations and product portfolios of both alcoholic and non-alcoholic beverages. The transformation also led us to build a dedicated non-alcoholic beverage plant in Sampang Agung in 2014 to support our ambitions in this category, and the new plant became fully operational in 2015.
In spite of the restrictions on product availability, we see exciting prospects ahead. Consumers are finding new ways and new occasions to enjoy both beer and non-alcoholic beverages, and in line with our new company’s mission we have a strong pipeline
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First established as Nederlandsch-Indische Bierbrouwerijen in Medan in 1929, the company began its commercial operations on 21 November 1931 in Surabaya.
The company was renamed PT Perusahaan Bir Indonesia.
1972
1981
2014
Launching of Bintang Radler.
Inauguration of non-alcoholic Beverages Plant in Sampang Agung.
1931
ABOUT US
Multi Bintang, has grown in strength to become a reputable and responsible public listed beverage company in Indonesia with a portfolio of leading beer and non-alcoholic beer/beverage brands, and a proud history of 85 years in Indonesia. Multi Bintang is synonymous with Bintang beer, the iconic beer brand of Indonesia. Multi Bintang also produces and markets7 Heineken® (No. 1 International premium beer in the world), low alcohol Bintang Radler (Lemon and Grapefruit), and non-alcoholic beverage Bintang Radler 0.0%, Bintang Zero 0.0%, Green Sands and Fayrouz in
SHaREHOLdERS NuMBER Of SHaRES IN% PaR vaLuE (IN RP MILLION)
Heineken International BV 1,723,151,000 81.78% 17,232
Public 383,849,000 18.22% 3,838
2,107,000,000 100.00 21,070
None of the commissioners or directors holds shares in the Company and its subsidiary.
Indonesia. We have two breweries (Tangerang, Banten and Sampang Agung8, Mojokerto, East Java) and a non-alcoholic beverage plant that is located next to our brewery in Sampang Agung. Multi Bintang through its subsidiary, PT Multi Bintang Indonesia Niaga, has established an extensive sales and marketing footprint across all major Indonesian cities, spanning from Medan in North Sumatra to Jayapura in Papua9. We are a proud organization of 475 members and in 2015 we welcomed 36 new full-time and part-time employees of Multi Bintang10.
18.22%PuBLIC
81.78%HEINEkEN
INTERNaTIONaLBv
The Company went public listed on the Jakarta Stock Exchange and Surabaya Stock Exchange as PT Multi Bintang Indonesia Tbk11.
1997
Relocated brewing operations in Surabaya to Sampang Agung where a new brewery was built.
2013
Heineken International B.V returned as the major shareholder of PT Multi Bintang Indonesia Tbk12 13 14.
Tangerang Brewery completed its technical upgrade.
12 Heineken International B.V. is referred as HEINEKEN or HEINEKEN Company throughout this report.
OUR MILESTONES
2015
New Corporate Identity launch.
Multi Bintang launched a new variant of Bintang Radler, Bintang Radler Grapefruit.
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Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
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FINANCIAL PERFORMANCE
* Before the impact of one time charge of exceptional item (excise penalty)
OPERaTING PROfIT
Decreased from Rp 1,146 billion in FY 2014 to Rp 940 billion in FY 2015 .
-18%NET SaLES
Decreased from Rp 2,988 billion in FY 2014 to Rp 2,696 billion in FY 2015.
-10%TOTaL aSSETS
Decreased from Rp 2,231 billion in FY 2014 to Rp 2,101 billion in FY 2015.
5.8%
* Before the impact of one time charge of exceptional item (excise penalty)
** Effective as of November 6, 2014, the Company's shares traded at a new nominal value (stock split from Rp1,000 to Rp10)
FINANCIAL hIGhLIGhT
Operating Profit before the impact of one time charge of exceptional item (excise penalty)
Net Income for the year before the impact of one time charge of exceptional item (excise penalty)940,163 662,369
Our results were significantly impacted in the first half by the issuance, in mid-January, of the Minister of Trade’s Regulation No. 6/2015 ruling the ban of beer sale in minimarkets and various other retail outlets, which significantly cut our distribution channels. The impact of the ban was compounded by overall weak consumer demand resulting from the ongoing slowdown in Indonesia’s economy15.
However, the Company rebounded from a significant setback during 2015 and closed the year well positioned for future growth. We revised our yearend net earnings projection down and
ensure good revenue management, cost leadership program and growth through new product innovation. We also rebuild the business by intensifying our focus beer selling on other available outlets, including bars, cafes and restaurants.
We began to see positive signs in the second half, driven by a change in consumer behaviour and the evolution of the market as it adapted to the new situation. At the same time, consumer purchasing power improved as the pace of Indonesia’s investment program began to pick up.
497
NET SaLES(in billion rupiah)
2015 2,696
2014 2,988
2013 2,713
2012 3,562
2011 3,052
OPERaTIONaL PROfIT(in billion rupiah)
2015 719 940*
2014 1,146
2013 1,117
2012 1,525
2011 1,278
(in billion rupiah)
BaSIC EaRNING PER SHaRE
2015 236**
2014 377**
2013 41,091
2012 55,576
2011 46,017
NET INCOME Of THE YEaR(in billion rupiah)
2015 497 662*
2014 795
2013 866
2012 1,171
2011 970
AChIEVEMENTS
Heineken®’s Take The Stage was named one of the 10 Best Digital Brand Campaigns of 2015 by Mix Magazine.
fEBRuaRYMulti Bintang’s Innovation Team won first place in the 2015 HEINEKEN Innovation Challenge, Asia Pacific region.
MaRCHMulti Bintang was ranked 15th in the SWA 100: Indonesia’s Best Public Companies (Overall) 2014 at the Wealth Added Creator Awards 2014 held by SWA Magazine.
JuLY
Bir Bintang achieved a ranking of 28 in the Most Valuable Indonesian Brands 2015 by Brand Finance, an international brand evaluation and rating institution, and SWA Magazine.
OCTOBERHeineken®’s Champion the Match was named among the top 5 in Indonesia’s Most Experiential Brand Activations 2015, Best Community Event category, by Mix Magazine.
Bir Bintang’s Cheers Bangga Indonesia Digital Activation, which was launched to commemorate Indonesia’s 70th anniversary, won the Bronze Award in the Digital Category at the 2015 Citra Awards.
NOvEMBER
Appendices & GRI IndexThe Big Picture Our Focus Areas Values & Behaviors Appendices & GRI IndexThe Big Picture Our Focus Areas Values & Behaviors
Multi Bintang received penalties Rp 221 Bilions administrative errors (for the period November 2010 – May 2014) from Directorate General of Customs and Excise. These administrative errors do not relate to the short payment of excise taxes, which Multi Bintang has always paid in full and on time. An Appeal Letter has submitted, Management is confident that the Company’s position is strong and it is probable that the Company will recover the amount55.
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ABOUT SUSTAINABILITy REPORTING
Governance16
At Multi Bintang, all sustainability initiatives are reported and reviewed by the President Director of Multi Bintang as the Chairman of the Multi Bintang’s Sustainability Committee. The progress of the company’s sustainability agenda is recorded by the Corporate Communications and Sustainability Manager as the Sustainability Coordinator.
Multi Bintang’s Sustainability progress is also monitored by HEINEKEN Global Executive Team, chaired by the CEO from HEINEKEN N.V. (where Multi Bintang is part of its operating companies) as the highest governing sustainability body and a dedicated Global Sustainable Development Team. Previously, the HEINEKEN Regional Sustainability Steering Committee was the highest body of governance.
s
13
audITEd audITEd uNaudITEd audITEd uNaudITEd
IN RUPIAh MILLION
Jan 2015 –
Dec 2015
Jan 2014 –
Dec 2014
Jan 2013 –
Dec 2013
Oct 2012 –
Dec 2013
Oct 2011 –
Dec 2012
12 months 12 months 12 months 15 months 15 months
Net Sales 2,696,318 2,988,501 2,713,027 3,561,989 3,052,031
Gross Profit 1,561,413 1,805,922 1,727,815 2,283,604 1,905,763
Operating Profit 719,548 1,146,368 1,116,763 1,524,924 1,278,060
Operating Profit, before the impact of one time charge of exceptional
item (excise penalty)940,163 - - - -
Profit Before Tax 675,572 1,078,378 1,168,350 1,576,945 1,287,653
Net Income for the Year 496,909 794,883 865,944 1,171,229 969,772
Net Income for the year before the impact of one time charge of
exceptional item (excise penalty)662,369 - - - -
Other Comprehensive Income 503,624 788,057 887,134 1,192,419 969,772
Basic earnings per share (in full Rupiah amount) 236* 377* 41,091 55,576 46,017
Net Working Capital -505,272 -772,307 -16,290 -16,290 -60,387
Total Assets 2,100,853 2,231,051 1,782,148 1,782,148 1,471,374
Total Liabilities 1,334,373 1,677,254 794,615 794,615 836,312
Total Equity 766,480 553,797 987,533 987,533 635,062
Other Comprehensive Income to Total Assets Ratio % 24% 35% 50% 67% 66%
Total Comprehensive Income to Total Equity Ratio % 66% 142% 90% 121% 153%
Current Ratio % 58% 51% 98% 98% 92%
Total Liabilities to Total Equity Ratio % 174% 303% 80%% 80% 132%
Total Liabilities to Total Assets Ratio % 64% 75% 45% 45% 57%
*Effective as of November 6, 2014,the Company’s shares traded at a new nominal value
(stock split from Rp1,000 to Rp10)
dIvIdENd
Dividend/Share (Rp) Payment Date Total Dividend (Rp)
2015Final Dividend 2014 138 19 June/June 2015 290,766,000,000
Interim Dividend 2015
2014
Final Dividend 2013 46.076 24 Juni/June 2014 970,821,320,000
Interim Dividend 2014119 (after the stock split
with ratio 1:100)
14 November/
November 2014250,733,000,000
Find more our financial data in our Annual Report 2015.
Governance Structure of Sustainability Committee in Multi Bintang
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Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
HEINEkEN CEO & Executive Team
Multi Bintang Sustainability Committee
Sustainability Coordinator(Corporate Communications & Sustainability Manager)
Supply Chain
Environment
Product Quality
Operational Safety
SustainableSourcing
Human Resources
health and Safety
EmploymentPractices
Marketing and Sales
ResponsibleMarketing
ResponsibleConsumption
ResponsibleLabelling
Corporate affairs
IndustryPartnerships
CommunityInvestments
and Philantrophy
StakeholderCommunications
Global Sustainable development Team
President director
14 15
BREWING a BETTER
WORLd
Sustainability Concept17
Brewing a Better World is our long-term approach to creating shared, sustainable value: for our company, for society and for the planet. It forms the basis of the sustainability priority within the company’s global strategy. Launched in 2010, Brewing a Better World focuses on key areas where we can make the biggest difference. Each of these areas is highly relevant to our day-to-day business operations, and to our stakeholders. Each focus area is underpinned by clear commitments that state our ambitions for 2020 with three-year milestones to be achieved
in 2015. Our six key focus areas are: • Protecting Water Resources• Reducing CO2 Emissions• Sourcing Sustainably• Advocating Responsible Consumption• Promoting Health and Safety• Growing with our Communities
We continuously consider the sustainability of
each step with respect to our key focus areas, some
highlights:
• Sourcing: Our main raw materials are barley
and hops. We work with farmers worldwide to
sustainably grow raw materials, like barley and
hops, needed to brew our beers.
• Brewing and non-alcoholic beverage
production: Each of these processes consumes
energy and water. Reducing energy and water
consumption means increasing energy and
water efficiency and switching to other more
environmentally friendly energy sources where
feasible. Energy and water reduction is achieved
by optimising the production processes.
Each brewery and non-alcoholic beverage
production site has a specific target and we
have an interactive system that allows us to
share good practices between them.
• Packaging: The majority of our beer is
served in bottles, cans and kegs. We are
constantly looking to innovate, finding ways
to optimise the production of our packaging
materials, such as light-weighting and
increasing the recycling and re-use rate.
• Distributing: All our products need to
be transported to our customers using
several modes of transport, including road
and ocean freight. Wherever we can, we
optimise the distribution by changing the
form of transport, training drivers, using
more efficient engines, and re-assessment
of distribution networks.
• Cooling: Most of our beers are consumed
cold and thus cooled at the point of
consumption via fridges (beer in bottles,
cans or smaller kegs) or draught equipment
(for beer in kegs). For new fridges purchased
by us, we have defined green standards
with which they have to comply. Each year
the standards are adjusted to ensure that
we continue to progress towards our 2020
goals.
• Responsible consumption: In our
responsible consumption advocacy, we
consistently communicate to our internal
and external stakeholders that our beer are
accessible only to consumers of the legal
drinking age (21+) and sold/served in a
responsible way which includes the retailers
are fully licensed and apply a strict ID check
procedure.
• Growing with our Communities:
Growing with communities underlines our
ambition to have a positive impact in the
communities where we live, work and sell
our products. The biggest contribution we
make to communities is through the positive
impact of our business itself: creating
jobs, providing business to suppliers and
paying taxes that support local and national
economy.
The way forward: 2016-2018 and beyond
In this report we document our progress against
the three-year milestones we communicated for
2015. In order to meet our 2020 commitments,
we have created concrete new milestones for
2018. We will report our progress towards these
milestones each year in our Sustainability Report.
We have also started to review our sustainability
strategy beyond 2020, based on our stakeholder
dialogue and materiality analysis.
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Materiality
The content of the report is directly linked to the Brewing a Better World strategy, our six focus areas and the 2020 commitments. Objectives and policies did not change compared with the 2014 Sustainability Report21. We have simplified the categorisation of our materiality matrix based on an ongoing dialogue with our stakeholders, benchmark results and internal risk analysis22. In this 2015 report, we continue to use our 2014 materiality matrix that was formulated through an internal materiality assessment workshop with senior management on significant issues. In the future, we plan to directly involve external stakeholders in the materiality assessment workshop.
The top three clusters mentioned were:1. Product Safety, Quality and Hygiene2. Responsible Consumption (including staff
alcohol responsibility and responsible marketing)3. Stakeholder Communications
Materiality Matrix20: (Top priority to least)1. Product safety, quality and hygiene (including
transparent ingredient information)2. Responsible Consumption (including staff
alcohol responsibility and responsible marketing)3. Stakeholder communications4. Governance and Business Conduct5. Regulatory compliance and excise6. Community development and investment7. Employment Practices (including training and
development and employee engagement)8. Public policy advocacy9. Energy and Carbon Footprint10. Occupational Health and Safety11. Product innovation12. Economic impact13. Waste Management14. Water Management15. Sourcing Sustainably
Our Value Chain18 19
We focus on key areas where we and our stakeholders believe we can make the biggest difference. These are underpinned by our values and behaviours. Our approach to sustainability covers the entire value chain From Barley to Bar. It means that 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, we have considered how to improve the sustainability of each step.
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Current or Potential Impact on HEINEKEN
Imp
ort
ance
to
Sta
keh
old
ers
1
3
4
2
56
7
8
9
10
1112
13
14
15
Agriculture Malting Brewing Packaging Distribution CustomerFocus Area Consumer
Advocating Responsible Consumption
Promoting Health and Safety
Growing with Communities
Values and Behavior
Sourcing Sustainability
Protecting Our Water Resoucres
Reducing CO2 Emissions
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBKSustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
PaCkaGING
aGRICuLTuRE
EMPLOYEES
dISTRIBuTIONCuSTOMERS
CONSuMERS
BaRLEY
MaRkET
COMMuNITIES
WaTERHOP
fLOWER YEaST
RaW MaTERIaLS Of BEER
BREWING & PROduCTION
FROM BARLEy TO BAR23
18
19
Our 475 employees enjoy the benefits and rewards – pay, training, healthcare, career opportunities – their hard work deserves. Our Employees follow the Global Code of Conduct Policy that guides us all to act according to our core values. The annual employee ‘Climate’ survey tracks engagement levels and helps us to identify actions required for areas of improvement.
We buy our raw materials from business partners who have signed our Supplier Code. We operate 2 breweries and 1 non-alcoholic beverage plant where continuous improvement on our energy and water consumption is focused on efficiency and switching to other more environmentally friendly energy sources where feasible. Each production site has a specific target and we have an interactive system that allows us to share good practices between them.
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We source our raw materials like barley and hops from global farmers within HEINEKEN Supplier network. HEINEKEN work with the farmers to sustainably grow it crops.
We are constantly looking to innovate and find ways to optimise the production of our packaging materials (bottles, cans, kegs and cartons for secondary packaging), such as light-weighting and increasing the recycling and re-use rate.
Our products are available across the Indonesian archipelago and also exported to some market overseas. We optimise the distribution by changing the form of transportation, training drivers on road safety, using more efficient engines, and reassessing our distribution networks to ensure a safe, efficient and timely delivery.
Millions of retailers serve a selection of our brands. New fridges purchased must meet HEINEKEN green standards. We work in partnership with our retailers to ensure our products are only sold to consumers of legal drinking age.
Growing with communities underlines our ambition to have a positive impact in the communities where we live, work and sell our products through job creation, providing business to suppliers and paying taxes that support local and national economy.
Consumers are the core of our business. We continue to meet changing consumer taste and provide them with choice of products through innovation. We develop new beer category such as low alcohol beer, near beer and non-alcoholic beverages. We consistently advocate responsible consumption through our brands and joint partnerships with our industry peers and retailers on legal drinking age (21+ campaign).
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OUR COMMITMENTS & whAT wE hAVE DONE
2015 Global Milestones
2015 Multi Bintang Results
Indicators2018
Milestone2020
CommitmentFocus Area
Reduce specific water consumption in breweries to 3.9 hl/hl A1
Achieved 3,9 hl/hl average for 2 breweries
Reduce specific water consumption in our breweries to 3.6 hl/hl A1
3.3 hl/hl on average for 2 of our breweries located in water-scarce and water-distressed areas
100% of our production units A2 (breweries) in water-scarce and water- distressed areas have a Source Water Protection Plan
Achieved 2 of our production facilities have completed Source Water Vulnerability Assessment and developed Source Water Protection Plan for each gacility. However, the water balancing initiative will only be carried out in 2016.
2 of our breweries A2
in water-scarce and water- distressedareas have started to implementaction plan forWater Balancing
Aim for significantwater compensation/balancing by ourbreweries in water-scarce and water-distressed areas (including Tangerang and Sampang AgungBrewery).
Reduce CO2 emissions in production by 11.8% (resulting in 6.7 kg CO2-eq/hl) A1
Not Achieved12.5 kgCO2-eq/hlIncrease 13.6% in CO2 emission
Reduce CO2 emissions in production by37% A1 (resulting in6.5 kg CO2-eq/hl)
Reduce CO2 emissionsin production by 40% A1
Reduce the CO2 emissions of fridges by 42% A4
Partly Achieved42.3% Green Fridges in the system and purchased.
100% green fridges purchased; Reduce the CO2 emissions of our fridges by 47% A4
Reduce the CO2emissions of ourfridges by 50% A4
Four-step Supplier Code Procedures operationalwithin all OpCos B1
95% compliance with four-step Supplier Code Procedure
Ongoing compliance with Supplier Code Procedure
Every market in scopeB2
has a partnership to address alcohol-related harm.
AchievedWe have a partnership in place to address alcohol-related harm. Report publicly
on a measurable partnership aimed at addressing alcohol abuse
Every market in scope has and reports publicly on a measurable partnership aimed at addressing alcohol abuse
All partnerships meet HEINEKEN’s seven-point partnership criteria
AchievedAll of our partners comply with HEINEKEN’s seven-point a partnership
Contribute to the five industry commitments and related KPI’s, as defined through the International Alliance for Responsible Drinking (IARD)
On TrackN/A
Deliver global industry commitments by end of 2017 and report in 2018
N/A
A 10% year-on-year reduction for the accident frequency
Achieved Decreasing 100%
Report incidents i.e. near miss in production units
Achieved All near miss cases reported in all function.
Report completion of e-learning Modules on health and safety
Achieved 100% reported
Sales personnel to have received road safety training (Defense Driving)
Achieved100% Trained
Zero accident
2015 Global Milestones
2015 Multi Bintang Results Indicators
2018 Milestone
2020 CommitmentFocus Area
N/A
N/A
N/A
N/A
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On Track100% of our listed suppliers signed The Supplier Code
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A1 Baseline 2008. A2 Twenty-three production units. A3 Baseline 2010/2011, scope is Europe and Americas, 24 of our largest operations: Belgium, Bulgaria, France, Ireland, Italy, Netherlands, Portugal, Spain, Switzerland, UK, Austria, Belarus, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Brazil, Mexico, USA. Scope represents 80% of volumes traded for total scope in Appendix 3. HEINEKEN Asia Pacific is not in scope of the 2015 commitment as the business was not consolidated at the time the commitment was made. A4 Baseline 2010.
B1 HEINEKEN Asia Pacific is not in scope of the 2015 commitment as the business was not consolidated at the time the commitment was made. They are in the process of becoming compliant in the coming years. B2 The 50 operating companies, which cover 48 markets, include all HEINEKEN markets except Islamic countries, markets where we have a Joint Venture and three minimal-volume markets for who allocating resource is unrealistic (Laos, Solomon Islands and Sri Lanka).
On Track Not AchievedPartly AchievedAchieved On Track Not AchievedPartly AchievedAchieved
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CREATING ECONOMIC & SOCIAL IMPACT
Economic Impact Study of Alcohol Industry (CSIS, 2015)26
In 2015, the Indonesian Brewers Association known as Grup Industri Minuman Malt Indonesia (GIMMI) commissioned an economic impact study on Alcohol Industry in Indonesia that was carried out by the Center for Strategic and International Studies (CSIS) in 2015. The study identifies direct and indirect economic impact of the industry that covers employment and output created and government revenues.
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STAKEhOLDER ENGAGEMENT & COMMUNICATIONS
Our internal and external stakeholders are vital to our business and contribute to each stage of our value chain. We appreciate the importance of stakeholder relationships, we also try to understand the interest and needs of our stakeholders and work together to identify and find solutions to any material issues. Considering alcohol may come as a sensitive topic of discussion, our decision to engage
specific stakeholder group is determined by our close assessment on past engagement and topics or issues of relevance to them. We regularly update our stakeholder contacts and maintain a constant dialogue with them about our sustainability strategy and actions. This keeps us focused and lets us know where they see an opportunity for us to do more27.
Domestic Alcohol Industry
Multiplier Effect to Other Industries
Rp. 21,82 Trillion(0.11% GDP)
Respective sectors impacted(Manufacture, Agriculture, Trade Services)
128,230people(0.11%)
Indirect Employment(Agriculture, Trade Services, Hospitality, Tourism)
Rp. 11.51 Trillion
National Output(including Rp. 5.69 Trilion from Alcohol Beverage Industry)
Rp. 27 BillionFrom restaurant services
Rp. 26 BillionFrom hotel services
0.03%Total Production Output
7,990people(0.008%)
Direct Employment
Rp. 6 TrillionExercise in 2015
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Topic of discussion29
Topic of discussion
How We Engage Them30
How We Engage Them
Stakeholders28 Stakeholders
• Responsible consumption • Business practice and compliance• Alcohol policy advocacy
• Formal letters• Scheduled meetings• Partnership
GOvERNMENT
• HEINEKEN supplier code • Environment • Continuous dialogue
SuPPLIERS
• Community investment and development
• Responsible consumption• Environment• Sustainable business operations
• Continuous dialogue• Scheduled meetings• Partnership• Formal lettersLOCaL aNd
INTERNaTIONaL NGO
• Business performance• Brands and innovation• Responsible consumption• Sustainable business practice• Alcohol policy advocacy
• Media visits• Brewery visits• Press conferences • Press releases • Exclusive InterviewsMEdIa
• Code of business conduct • Business performance and strategic
direction• Sustainable business practice• Company’s reputation and positive
stories about company and beer category
• Town hall meetings• Bulletin board messages • Employee engagement
opportunities • Speaking engagement
opportunities for employee ambassadors
EMPLOYEES
• Brand leadership • Company’s reputation and positive
stories about company and beer category• Responsible consumption
• Market insights studies/surveys• Product trial programs• Brand activation programs and
campaigns• Social media engagementCONSuMERS
• Responsible consumption• Alcohol policy advocacy• Industry best practices • Code of business conduct andself-
regulatory code
• Scheduled meetings• Joint programs / campaigns /
partnerships• Continuous dialogueINduSTRY
aSSOCIaTIONS
• Labor working agreement• Labor best practice• Business performance and strategic
direction• Sustainable business practice• Company’s reputation and positive
stories about company and beer category
• Scheduled meeting• Continuous dialogue
LaBORuNION
• Responsible consumption / alcohol retailing / legal Drinking Age
• Self-regulatory code• Alcohol policy advocacy
• Scheduled meetings• Joint programs / campaigns /
partnerships direct and through industry association
• Continuous dialogue• Formal letters• Brewery visits
CuSTOMERS & CONSuMERS
• Responsible consumption• Alcohol policy advocacy• Company’s reputation and positive
stories about company and beer category• Sustainable business practice• Brands and innovation• Community investment and
development
• Scheduled meetings• Joint programs / campaigns /
partnerships direct and through industry association
• Continuous dialogue• Formal letters• Social media engagement• Brewery visits
COMMuNITIES
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STAKEhOLDER ENGAGEMENT ACTIVITIES
Multi Bintang’s meeting with the Minister
of Trade on Responsible Consumption
agenda
In April 2015, a Multi Bintang and HEINEKEN’s delegation met with the former Minister of Trade, Rachmat Gobel, on a sideline meeting during the World Economic Forum on East Asia (WEF-EA) in Jakarta. Multi Bintang was represented by our President Commissioner Cosmas Batubara, President Director, Michael Chin and Corporate Affairs Director, Bambang Britono, while HEINEKEN was represented by the Global Director Public and Governmental Affairs, Roland Verstappen. During the meeting we discussed a number of issues including our stance on responsible consumption and underage drinking issue. We believed it was important for us to share our thoughts and our concerns about responsible consumption topic to the minister particularly after the issuance of Ministry of Trade Regulation No. 6 on 16 January 2015 that effectively restricts or bans the sales of beer in minimarkets31.
As part of our transparency effort, we published a number of take away points and results of the meeting to the media:
1. We stated to the Minister of Trade that it is part of Multi Bintang and HEINEKEN’s policy to protect the underage from consuming alcohol. • We are part of Global Alcohol Producers
Commitment Signatories (www.producerscommitments.org) and apply very strict rules about how to market and sell our beer products including preventing under-age drinking.
• HEINEKEN has many programs in place around the world to achieve this and Multi Bintang has the same in Indonesia.
• Multi Bintang has worked together with a large number of minimart operators to train their staff to make sure they do not sell to people below the legal drinking age (21+ Awareness program - legal drinking age and ID check procedure). Since 2012, approximately 1000 outlets and 15000 staff participated in the program. Moreover we also trained hotel, restaurant and café staffers making sure they only sell our products in a responsible manner.
2. During the meeting, the Minister of Trade, Rachmat Gobel, agreed to continue our dialogue by forming a joint working group consisting of the Ministry of Trade and the beer Industry aimed at finding alternative solutions and programs to prevent underage drinking.
Throughout the year of 2015 we continue to establish dialogue with multiple stakeholders including the Government, brewers association, other alcohol producers association, retailers association, hotel and restaurant association, consumer groups and members of civil society groups to discuss about responsible consumption and issues with alcohol misuse, alcohol related harm, problems with widespread bootleg alcohol issue (methanol mix), as well as the most appropriate alcohol policy for Indonesia context. In the coming years, we will continue the dialogue and work hand-in-hand with our stakeholders to provide more effective solutions to address concerns of underage consumption and alcohol policy in general.
Improved Employee Engagement Rate
in 2015 Climate Survey and awarded an
Indonesia Human Capital award 2016
Multi Bintang conducts Internal Climate Survey on annual basis as our effort to create a better working environment for our people. With the support of IBM, the survey is done electronically to reach most of our employees. Compare to 2014, the participant rate increased from 93% to 96%. From the survey, we discovered three key priorities for improvements which include My Manager, Cooperation and Teamwork and Personal Development. In the 2015 Climate Survey, the Employee Engagement Index has also increased from 78% to 80%. As a follow up to the survey, a continuous dialogue with employees will be carried out to ensure positive improvements.
Our consistent efforts to make a great working environment allow us to be acknowledged as one of the top listed companies (from 100 participating companies) with the best practices in human capital strategies by the Indonesia Human Capital Award (IHCA). The award was organised by IPMI International Business School, Economic Review (magazine) and NBO Indonesia (an HR management consultant).
Beer-B-Q with Beer Enthusiast
Community, food Bloggers and Media
Despite the long history of beer on earth and in Indonesia, beer as a low alcohol beverage (below 5%) and its brewing process are largely unfamiliar amongst Indonesian public. One of our key communications objectives in 2015 was to engage the wider community about beer. Following the launch of our low alcohol (2%) Bintang Radler Lemon, we took the opportunity to engage our stakeholders and share more information and interesting facts about beer starting from its historical origin, what is beer and how it is brewed. In April 2015, we invited 60 people from the media, beer enthusiasts, culinary experts and food critiques, bloggers and Instagram celebrities to engage with our brands and experience new beer occasions in an event called Beer-B-Q. The participants were able to learn about beer directly from our brewers, visit our brewery and enjoy fresh beer that is paired with barbequed food prepared by two renowned Indonesian chef.
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Roadshow to Media Headquarters during
Oktoberfest
During the period of the Oktoberfest, we organised a series of roadshow to five national media headquarters (Harian Kontan, Harian Kompas, The Jakarta Post, Kompas.com and Antara) based in Jakarta to share knowledge about beer and alcohol in general, The Magic of Brewing, and responsible consumption (the right attitude towards alcohol) presented by our Multi Bintang Ambassadors. The visits were positively accepted in five different locations and attended by a total of 123 media personnel. They also had the chance to learn about beer tapping technique from draught beer team and enjoy beer paired with food. Our visits were also highly appreciated by the editors, particularly for our openness and willingness to share information about our product, business and industry, despite the sensitivity of being in a market where information about our alcoholic products are limited in public domain.
visit from anti-Bootlegging Community
In October 2015, Our Sampang Agung brewery hosted a visit from Komunitas Masyarakat Anti Oplosan (Anti-Bootlegging Community) from Mojokerto and Surabaya. The community is particularly interested in learning more about beer, a low alcohol beverage under 5%, produced with high quality standard and license from the government. During visit, the community also had the opportunity to exchange knowledge with our 50 employees about their studies and findings about bootleg alcohol known as oplosan. Bootleg alcohol is produced and sold illegally using non-food grade materials, including methanol that can be fatal and have serious impact to health. Such engagement and exposure with a civil group broadens the company’s and employees’ perspective toward the complexity of issues, business and reputation challenges faced by legitimate alcohol industry, as a result of lack of information and misinformed consumers and public about alcohol. Multi Bintang sees this as an opportunity to be at the fore front on responsible consumption advocacy and public education on alcohol.
PARTNERShIP & MEMBERShIPS ON ThE SPOTLIGhT
THE INdONESIaN BREWING INduSTRY aSSOCIaTION, GIMMI32
Profile and Mission
Grup Industri Minuman Malt Indonesia (GIMMI) was established in 2000 where Multi Bintang was one of the co-founders and active members. As per December 2015, GIMMI has three brewers namely PT Multi Bintang Indonesia Tbk, PT Delta Djakarta Tbk and PT Bali Hai and one brand principle/owner (PT Gita Swara) as its members.
The industry association helps members to collectively establish dialogue with our multiple stakeholders on industry road map, alcohol policy advocacy, industry code of business conduct and responsible consumption.
Latest action
In 2015, Multi Bintang has engaged the rest of GIMMI members to participate and support our partnership program on advocating responsible retailing program (21+ Campaign) with Carrefour as modern off trade retailer/hypermarket operator. The 21+ Campaign program is an initiative on responsible retailing that was started by Multi Bintang in 2012. More details about the story and progress of 21+ Campaign program, read our 2014 Sustainability Report and on page 53 of this report.
Profile and Mission
GAPMMI is the Indonesian food and beverages producers association established in April, 15th 1976. Multi Bintang is listed as a member of GAPMMI since June 2015. With more than 300 food and beverages manufacturers, GAPMMI helps its members to protect and develop their business by providing them with valuable assistance and information on multi-aspect on food business from food safety, labeling and other economic issues related to food industries.
Latest action
In June 2015, Indonesian Food and Beverages Companies Association, GAPMMI updated us about industry participation opportunity to address our final feedback on the draft of Indonesian National Standardisation (SNI) for beer category at the Consensus SNI Technical Meeting, organised by the Ministry of Industry. Multi Bintang participated in the meeting and shared our inputs as a beer industry member.
INdONESIaN fOOd aNd BEvERaGES COMPaNIES aSSOCIaTION, GaPMMI33
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of our key pillars within the TPM is the Focus Improvement Pillar, which includes looking into the possible reduction of water and energy consumption through process modification, new methodology and technology.
For Brewery Tangerang, we use two water sources, which are Tirta Benteng Tangerang City Water Company (PDAM Tirta Benteng Kota Tangerang) and Tirta Kerta Raharja Tangerang Regency Water Company (PDAM Tirta Kerta Raharja Kabupaten Tangerang) with a total of 311.537 m3. As for Sampang Agung Brewery, we use two water resources, which include the Mojokerto PDAM and a deep well with a total of 371.607m3 for 201534.
In 2015, we have not used any recycled and reused water. However, we will explore a project on this in 201635.
PROTECTING OUR wATER RESOURCES
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OUR 2020 COMMITMENTS
Reduce specific water
consumption by 25% and
achieve 3.3 hl/hl on average
in our 2 breweries
Protect our water resources
in our 2 breweries located
in water scarce and water
distressed areas
Aim for significant water
balancing in these areas
For more information on our water priorities and
why this is important, visit our website.
In February 2015, Multi Bintang’s parent company, HEINEKEN entered into a partnership with the United Nations Industrial Development Organization (UNIDO). UNIDO will act as an independent broker, bringing together key stakeholders and helping operating companies like Multi Bintang to develop Public-Private Partnerships where relevant. UNIDO will facilitate a jointly organised three-day stakeholder engagement workshops to develop a shared vision on the most important water issues and on collective efforts needed to redress them. Multi Bintang’s two production sites are in scope for partnership with UNIDO to mobilise stakeholders on shared water issues. The workshops in two sites are scheduled to take place in 2016.
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STakEHOLdER WORkSHOP ON WaTER
REduCING WaTER CONSuMPTION IN OuR BREWERIES
water is a scarce and shared resource vital to well-being of the communities and ecosystems.
Both our breweries, Tangerang and Sampang Agung are considered to be in water-scarce and distressed areas.
water is the key raw material for our products i.e. beer is 90-95% water, and throughout our supply chain, including in the maintenance and growth of crops.
To ensure continuous improvement of water efficiency at both of our breweries in Tangerang and Sampang Agung, we consistently implement Total Productive Management (TPM), monitor the reduction and benchmark our water consumption with other breweries within the HEINEKEN Company. Successes of breweries within the HEINEKEN Company’s network are constantly shared as best practices. One
NEW 2020 TaRGET 3.3 hl/hl
TaRGET fOR 2018
2015
2014
2013
3.6 hl/hl
3.94 hl/hl
4,06 hl/hl
4,26 hl/hl
Partnership with UNIDO to mobilise stakeholders on shared water issues.
We consistenly implement Total Productive Management (TPM) and reduce water consumption to 3.94HL/hl in 2015.
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water Balancing Project
Multi Bintang have been assessing water-related risks and focus our immediate efforts on the breweries in water-stressed areas. The two watersheds of our breweries are in the National Park of Mount Gede Pangrango (for Tangerang Brewery) and Gunung Wellirang (for our Sampang Agung Brewery). Multi Bintang is scheduled to roll out our Reforestation initiative as part of our key balancing initiative for both watersheds in 2016. The implementation will be supported by the Conservation International Indonesia and a local NGO named SEMAK (for Tangerang Brewery) and currently exploring the NGO partner for Sampang Agung.
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wATER STEwARDShIP PROGRAM
Through our Water Stewardship Program we focus on two main objectives:
1. Water Efficiency is targeted to reduce the amount of water used for production and in the rest of our supply chain
2. Water Source Protection and Balancing is our effort to ensure water used in our operational is returned to the ecosystem after becoming end product and evaporates during production process.
water Source Protection & water Balancing
Water Source Protection is our effort to ensure water used in our operations is returned to the ecosystem in a good quality. While Water Balancing is our initiative in water scared and distressed area to compensate water, that does not return to the initial ecosystem after becoming end products and evaporates during production process.
In 2014, the assigned Water Team from each brewery have developed their Water Source Protection Plan to address specific vulnerable issues on water based on the Water Source Vulnerability Assessment (WSVA). Some actions have ta ken place in 2015 while the implementation of reforestation as our Water Balancing initiative is delayed and re-scheduled to be implemented in May 2016.
The followings are our upstream and downstream initiatives for our Water Stewardship Program in 2015:
waste water Treatment
A numbeR oF initiAtives to sustAin
AnD suPPoRt ouR cAuse
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Upstream:
Source Protection Project
a. Sampang Agung BreweryAll employees of Sampang Agung Brewery participated in the planting of 1000 trees in Mount Welirang, the watershed of Mojokerto residence and our brewery. The program was in partnership with local surrounding communities and local NGO, Yayasan Lingkungan Hidup Seloliman.
b. Tangerang Brewery The Tangerang Brewery team updated the WSVA plan by reassessing the 2015 situation and risks where the findings shown a positive progress on water supply level relatively stable and reduce the risks to our operation. We continued to engage and establish dialogue with our key government stakeholders such as the Tangerang Environmental Office and local water company, PDAM of Tangerang, who supplies water to our brewery to obtain updated situation on water condition in Tangerang particularly on the risks of water scarcity.
water Source Protection & Balancing through
Reforestation
GLOBaL avERaGE WaTER fOOTPRINT PER PROduCT*
298 litres of waterper litre of beer
870 litres of waterper litre of wine
1,020 litres of waterper litre of milk
1,056 litres of waterper litre of coffee
108 litres of waterper litre of tea
Product
Water footprint(Global Average)
% footprint via Rainfall
85% 70% 85% 96% 82%
Our Water Stewardship Program focuses on two main objectives are Water Efficiency and Water Source Protection and Balancing.
replanted in Mount Welirang, watershed of
Mojokerto residence and our brewery.
1,000 Trees Our Reforestation initiative program will be supported by the Conservation International Indonesia and a local NGO named SEMAK (forTangerang Brewery) and currently exploring the NGO partner for Sampang Agung.
Sustainable use of water and initiative to safeguard this limited resource is critical and we have the responsibility to promote responsible water use and encourage our stakeholders as well.
water Stewardship Program as our approach for addressing water-related issues that will benefit the wider community, not just our breweries in a long term.
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* Source: Water Footprint Network, Product Gallery
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downstream : Environmental Education
Project & Biopori
a. Sampang Agung Brewery
In 2015, the Sampang Agung Water team launched a Green School Program with the aim to raise the awareness of environmental issues among schools, including students and teachers. The Green School Program was conducted in SMA Kutorejo 1, as a finalist for the Adiwiyata Program.
Adiwiyata Program is a program of Ministry of Environment targeted at junior and high schools to raise awareness and promote environmental conservation. The participating schools are expected to be involved in various initiatives and programs that promote healthy environment and reduce negative impact to the environment.
Our Green School Program includes activities such as well construction, drilling, energy and water saving campaign, create simple waste water treatment for canteen area and hydroponic. Through this partnership, SMA Kutorejo will sign up for the next Adiwiyata Program for 2016. We also engaged SMP Kutorejo 2 (junior high school) and SMA Kutorejo 1 (senior high school) to support Biopori project by making 160 biopores in the school areas.
b. Tangerang Brewery
The Biopori Program has become a great a way to engage our local communities surrounding our operations to care for the environment better. Biopori had become part of our downstream program for our Water Stewardship Program since 2014. It becomes an effective and interactive way to engage and educate our employees and surrounding communities, about the importance of protecting and preserving our water and its source. A group of our employees have become an active ambassador of the company, in expanding the reach of Biopori in both the Tangerang and Sampang Agung area. The program also received direct support from the local government, Batuceper, Tangerang. In 2015 the number of biopori holes, made throughout the year, was 1000 new biopores. To learn more about the Biopori initiative, read our 2014 Sustainability Report page 45.
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wASTE wATER TREATMENT
Wastewater is produced as part of our brewing operations. We treated and disposed the water in line with government regulation and there was no verified environmental complaints, accidents or fines during the year36. Multi Bintang released 45.240 kgCOD/y in 2014 and 38.468 kgCOD/y of treated waste water to surface water in 2015 equals to a decrease by 15%37.
All liquid waste generated by the production process at the breweries is processed in the Waste Water Treatment Plant (WWTP). In the WWTP, there are two processes involved, namely:
1. Anaerobic Treatment. This treatment is a process that uses anaerobic bacteria to reduce the value of Chemical Oxygen Demand (COD) and Biological Oxygen Demand (BOD) up to certain values.
2. Aerobic Treatment. Waste processed in the anaerobic aerobic treatment will be processed in the form of an aeration pond where the COD and BOD values will be lowered again, until the threshold permitted i.e. COD < 100 mg / liter, BOD < 40mg / liter. In this process, the sludge will be separated from the waste water to reach Total Suspended Solid (TSS) < 40mg / liter.
To improve the performance of the WWTP in 2015, we optimised the use of calamity as a buffer tank waste water, to contain waste that exceeds the standard design to be processed in the WWTP (high temperature, low pH, COD, beer reject). This is intended to ensure the WWTP can be run without any interruptions caused by temperature is too high or too low pH. The operation of the
WWTP is supported by a specialist that remotely manages the WWTP and provides advice in case of any problem and/or potential improvement. We recorded no issue related to the WWTP in 2015. The monitoring of the waste water quality (pH, COD, TSS) at the WWTP is conducted by internal team on daily basis and by external Lab and Lab Technician on monthly basis. We report our waste water quality to the Tangerang and Mojokerto Environment office of the Ministry of Environment every 3 months.
During 2015, the results of the water balance were always appropriate standard (1.5 hl / hl) and became one of our achievement in 2015. The Water Balance of the WWTP is the ratio of the amount of waste water, treated with water used for production / brewery.
Plan for Improvement in 2016
• The waste gutter and calamity tank will be rearranged in order to conform to the regulations and the capacity of wastewater from production.
• The Fish Pond is used as a visual indicator that the waste water treated at the WWTP, is in conformity with the regulations and fish can live in wastewater after being processed at the WWTP.
• The utilisation of methane, generated from anaerobic processes, for combustion in the boiler after going through the screening process and drying.
• The re-used effluent water for reuse in the process, which is not directly related to the product, after going through the filtration process.
“Community awareness and care for the environment particularly the importance of water can be raised
through initiatives like biopori program. Involvement and support of local government and active participation
of families as well as youth organisations in the city of Tangerang will have a greater impact to the
environment conservation” Agus Sugiarto, employee ambassador and Engineering Team, Tangerang Brewery.
20 employee ambassadors and nearly more
than 100 people from surrounding communities
participated in the Biopori program and water
conservation and management initiatives.
In 2015 the number of biopori
holes, made throughout the year,
was 1000 new biopores.
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BREwERIES' ByPRODUCT: SPENT GRAIN
Spent grain is the leftover malt after the mash has extracted most of the sugars, proteins and nutrients. In general, this can constitute as much as 85% of a brewery’s total by-product, which can be reused. This by-product still contains high protein, fiber and vitamin content which is the best re-used as animal feed39.
Approximately 94% of brewers’ spent grain is recycled as animal feed. Some other viable options are the use of this brewery’s by-product for the agriculture sector in a form of compost fertilizer, biomass and also an ingredient for food manufacturing.
We take a similar approach to our 15,870 tons of spent grain produced in our breweries in 201540. Some of these by-products are sold to a dairy and cheese producer, in Malang, East Java, producer and local kettle farmers for kettle feed. We also sell our spent grain to a local village cooperatives, as part of our community investment initiative. By doing so, the kettle farmers can save up the cost for livestock feed. A smaller portion goes to small holder farmers to be made compost fertilizers for their agriculture plot of land. These alternative uses of spent grain demonstrates our commitment to sustainability, which has a direct impact, not only to our products and business operations, but also to our neighboring communities.
There has been a drop in quantity of spent grain sold in 2015 compared to 2014, due to drop in sales of beer by approximately 30% following the ministerial regulation restricting the sales of beer in minimarkets, which immediately affects our production.
• The modification of the aeration system, the process which injects oxygen into the water, by using the surface aerator as a fine bubble diffuser aeration system, which will improve the quality and reduction / saving of electricity consumption.
In 2015, Tangerang Brewery was awarded a blue rating in the Company’s Environmental Performance Rating Program (PROPER)38 held by the Ministry of the Environment of the Republic of Indonesia for compliance on Safety, Health, and Environmental Management Systems. The blue rating is awarded to companies which have shown efforts to manage the environment, where they operate as required according to the laws and regulations. In the coming years, we aim to enrich our brewery’s PROPER reporting to the local environmental office, in order to improve our rating to green, awarded to the company that has shown beyond compliance efforts for its environmental management. This includes continuous improvement, efficient use of resources through 4R - reduce, reuse, recycle and recovery - and community development initiatives.
94% of brewers’ grain is
recycled as animal feed
of spent grain are use for the agriculture sector in a form of compost fertilizer, biomass and also an ingredient for food manufacturing.
15,870 Tons
37
TOTaL QuaNTITY Of SPENT GRaIN SOLd
BIOPORI
2013
2014
2015
2012 150 holes
1000 holes
440 holes
510 holes
Biopori is a process of creating by man-made holes that are built into a certain depth (1 meter) underground to improve rain fall absorption.
This hole contribute to ground water protection and flood control in urban cities.
38 Regulated in Ministry of Environment Regulation No. 5 Year 2011 about
PROPER Environmental Performance Rating Guidelines.
Efficient use of resources through 4R
- Reduce, Reuse, Recycle and Recovery
and community development initiatives.
A drop in quantity of spent grain sold in 2015 due to
drop in sales of beer by approximately 30% following
the ministerial regulation restricting the sales of beer in
minimarkets.
21,368,630 kg
25,562,960 kg
2014
2013
2015 15,870,370 kg
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Tangerang Brewery
Sampang agungBrewery
BREWERY & NaB PLaNT
Sampang agung NaB Plant
Java ISLaNd
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
REDUCING OUR CO2 EMISSIONS
38
Reduce co2 emissions in
production by 40%Reduce the co2 emissions of
our fridges by 50%
OUR 2020 COMMITMENTS
For more information on our co2 priorities and
why this is important, visit our website.
39
CO2 emissions directly contribute to climate change and has an impact on the availability and cost of raw materials and other resources. As a corporate citizen, we decided to play an active role in reducing CO2 emissions across our value chain from Barley to Bar. Our biggest CO2 emissions come from the use of boilers, electricity, freon refrigerants, ammonia, fossil fuel and emitted gas from our Waste Water Treatment Plant (WWTP). Our commitment is reducing our CO2 emissions through (1) Energy-saving initiatives; (2) Increasing the use of renewable energy and lower-emission energy sources. Momentarily, our emission reduction initiative is still coming from energy-saving initiatives. We will explore several initiatives using renewable energy in 2016.
HEINEKEN Global has a comprehensive carbon footprint model. We adopted its calculations of our Greenhouse Gas emissions from beverage production and to better identify areas for improvement in our value chain.
CARBON FOOTpRINTS
year
2015
2014
2013
7.490.773 kg
8.909.792 kg
10.018.307 kg
13.047.320 kg
14.510.893 kg
15.149.864 kg
Specific Direct and Indirect CO2 emissionsat Breweries and Soft Drink Plant
Our direct emissions come mainly from the combustion of gas for boilers and methane in the WWTP and for our indirect emissions come from electricity consumption.
Our commitment is reducing our CO2 emissions through Energy-saving initiatives; and Increasing the use of renewable energy and lower-emission energy sources.36% Reduction in Carbon
emissions since 2008
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41 42
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
Total volume of beverage production
Absolute direct and indirect CO2
Heineken 6.7 kg CO2 -eq/hl
If compared to Heineken N.V.average specific direct and indirect CO2 emissions:
2015 12.5 kg CO2 -eq/hl (increase of 13.6%)
Mainly due to electricity and gas consumption and lower production
2014 11.0 kg CO2 -eq/hl
Direct CO2 Emission Indirect CO2 Emission
2.087,0 khl2013
12.1 kg CO2 -eq/hl2013
2.137,1 khl2014
2015 1.640 khl (23% decrease)
9,5 kwh/hl
40 41
2014
Regular Fridges
Total Fridges
Hydrocarbon
741 (68%)
345 (32%)
1.086 fridges
Projection in
2016
Regular Fridges
Total Fridges
Hydrocarbon
741 (48,7% )
782 (51,3% )
1.523 fridges
300pcs
2015
57,7%
42,3%
NOT compliant to the green cooling memo
Compliant to the green cooling memoThe increase of specific thermal energy consumption
in both breweries was due to the significant drop in production volume due to destocking following minimarket ban in the beginning of 2015.
Our management plans to reduce our thermal consumption to 74.1 MJ/hl and electricity consumption to 9.6 kWh/hl. To achieve this objective, we will implement several changes for both thermal and electrical
Thermal
1. Fixing leakage on steam trap KEG Line2. Automatic Boiler Pressure Control 3. Insulation brewing Vessel HV and MT4. Replacement steam trap at bottle washer5. Repeal CO2 leak at TOP of Cellar Tank6. Jet aerator management at WWTP7. Reduce Evaporation rate Boiling (6% to 4%), continue
with reduce boiling time 75 to 60 minutes
Electrical
1. Total cleaning condenser 2. Install LED at Pack (botling, can)3. Install LED at Brewing (Brewhouse, BMF)4. NH3 Compressor Management5. Cold Room Management 6. Cleaning Stratification Tank 7. Reduce Electricity consumption at Brew Water
Pump8. Cold Insulation pipe9. Reduce Electricity at Compressed Air Plant
• Install Air Distribution pipe to Brew and cellar from Buffer Tank (Previously: Directly From Compressed Air Plant)
• Reduce compressed air pressure • Install Automatic control (solenoid valve) at air
rotary malt transfer• Install Inverter for Cooling Tower pump
Cooling is essential for the enjoyment of our beverages, but also one of largest contributor to our total carbon footprint. We buy and supply fridges, used to store, and display our beer products in supermarkets, bars and restaurants. This allows us to control the quality of the beer by setting the correct temperature, as well as the appearance of the fridge and our brands in the fridge. To reduce our emissions in this area, we focus on installing more energy-efficient fridges, to align with our parent company, HEINEKEN’s Global Fridge Policy. Green fridge uses hydrocarbon refrigerant, LED illumination, an energy management system and energy-efficient fans. In 2014, we already purchased 345 chillers and in 2015 we allocated all units to 17 areas across Indonesia, base on request. In 2015, we also ordered 437 units to be allocated in 2016 with the following 3 types of chillers.
After the first purchase, we evaluated the hydrocarbon fridges compared to regular fridges, through service requests nationwide. In 2015, we had 648 service requests, from 1.086 fridges, but only 36 units are hydrocarbon fridges. The common service requests for hydrocarbon fridges are cleaning condenser and lamp replacement, compared to regular fridges that request change in compressor. Saving energy does not just reduce our emissions, it also means our customers incur less costs in their businesses. Compare to regular fridges, Hydrocarbon fridges also use less electricity by 20%, less watt consumption, which is based on electricity bill per month, from IDR 108,600 reduced to IDR 81,000.
REDUCING CO2 EMISSIONS FROM GREEN FRIDGES
Energy & Water awareness program
1. Stop Leak Program2. Energy and Water Sticker and barner campaign3. Weekly Energy and Water Audit4. Repair broken insulation5. Repair Steam leak
100% 32% of our fridges already in the
market in 2015 are green fridges.
of our purchased fridges in 2015 are
Green Fridges, energy efficient fridges.
We source our energy from thermal (gas, solar) and electricity.
In 2015, we used 118.7 MJ/hl of energy to produce one hectoliter of our products43. Compare to 2014, we used 113.4 MJ/hl, increase from our prior year consumption by 4.7%44.
ENERGy CONSUMpTION
We used 118.7 MJ/hl of energy to
produce one hectoliter of our products.
Our management plans to reduce our thermal
consumption to 74.1 MJ/hl and electricity
consumption to 9.6 kWh/hl.
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year
2015
2014
2013
118,7 Kg CO2eq/hl
113,4 Kg CO2eq/hl
125,7 Kg CO2eq/hl
Total
80,9 Kg CO2eq/hl
78,9 Kg CO2eq/hl
88,8 Kg CO2eq/hl
Thermal Energy
10,5 Kg CO2eq/hl
34,5 Kg CO2eq/hl
36,9 Kg CO2eq/hl
Electrical Energy
Total Specific Energy Consumption
2015
2014
2013
year Tangerang Brewery
129,8 MJ/hl
119,5 MJ/hl
128,7 MJ/hl
Sampang Agung Brewery
111,8 MJ/hl
101 MJ/hl
112 MJ/hl
Specific Total Energy Consumption in Both Breweries
2015
2014
2013
year Tangerang Brewery Sampang Agung Brewery
82,4 MJ/hl 79,9 MJ/hl
79,4 MJ/hl 70,3 MJ/hl
89,0 MJ/hl 77,7 MJ/hl
Specific Thermal Energy Consumption
2015
2014
2013
year Tangerang Brewery Sampang Agung Brewery
13,2 kwh/hl 8,9 kwh/hl
11,1 kwh/hl
11,0 kwh/hl
8,5 kwh/hl
Specific Electricity Consumption
16 pcs
121 pcs
300 pcs
Reducing CO2 emissions from Green fridges
SC 88
Innova 288 HC
S650 HC
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Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
42
The green glass bottles for Bintang brand, all variant in 330 ml and 620 ml size, are returnable to our breweries. The used empty bottles will be returned by the retailers or outlets to our distributors or sub-distributors. They will be then delivered together with our crates back to our breweries and will be sorted and go through a stringent cleaning process, before directed back to our packaging line. Damaged bottles will be destroyed into smaller culets and sold back to glass manufacturers to be reproduced. Culet form is preferred by glass producers, as it will help
CIRCUlAR ECONOMy – JOURNEy OF OUR GREEN BOTTlES
them to use less energy for production, and therefore translated into greater cost savings.
There is a small portion of the bottles that does not return to our breweries, due to damaged bottles or being used by small economies i.e. small businesses as alternative used packaging for their own products. On annual basis we place a relatively small investment, approximately 13-19% to replenish our stock of green glass bottles.
MaRkET
$
Returning Bottles / collected from the market
for Bintang pint
81%for Bintang bremer
87%
Quantity of Bintang bottle purchase in 2013 – 2015
2014
2015
2013 41,250,438
57,516,642
19,126,936
43
Multi Bintang uses recycled materials for the production of our cartoon paper box, aluminum cans and bottles. A recyclable logo is printed on our cartoon boxes, cans and bottles. In January 2015, Multi Bintang embarked a project called Consumer Value Engineering led by the Quality Assurance Division and in collaboration with the Marketing, Procurement Team and our suppliers. There are two main initiatives, namely:
1. Reduction of the height of cartoon box as outer packaging of the Bintang 620 ml bottles to allow the products fit better, to reduce damaged boxes when being staked up and to maximise the truck capacity during loading process. At the same time, this initiative also helped to reduce the amount of recycled paper used for producing the cartoon by removing the partitions and ultimately led to cost savings (reduction by 2%)45. By the end of 2015, the initiative has been applied to 100% cartoon boxes of Bintang 620 ml produced in Sampang Agung Brewery, and starting mid-2015, it has been partially rolled out in Tangerang Brewery. In the future, Multi Bintang will extend similar approaches and improvements to our other products. Through this initiative, we were able to reduce our paper usage by 4 %. We use 100% recycled paper for our cartoon boxes46.
2. Down gauge of all 330 ml cans to allow less use of aluminum materials. The initiative first came from our can supplier, United Can Company (UCC) who have invested on the supporting equipment. The full implementation on all can products began in September 2015 and is expected to reduce the aluminum usage by 9%.
pACKAGING INNOVATION
L: 322
W: 241
H: 285
Before
L: 315
W: 238
H: 283
after
We also collect the crates
The broken bottles are recycled
Bottle are sorted at the brewery to make
sure we only have safe and according to
standart bottle
In January 2015, Multi Bintang embarked a project called Consumer Value Engineering led
by the Quality Assurance Division and in collaboration with the Marketing, Procurement
Team and our suppliers.
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47
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
ongoing compliance with our supplier code Procedure
OUR 2020 COMMITMENTS
SOURCING SUSTAINABLy
44
For more information on our sustainable sourcing priorities
and why this is important, visit our website.
Multi Bintang continues to focus on prioritising the sustainability of our operations as our way to make a difference. In 2015, we planned to source our green bottles from local suppliers and support the development of a green bottling plant, locally by a local manufacturer. Currently all of our bottles are supplied by manufacturers in China, due to the unavailability of green bottling plants in Indonesia. Unfortunately, the plan was postponed due to drop in sales volume in the beginning 2015 the restriction of beer sale in minimarkets.
We had a total of 568 suppliers listed in our procurement system, of which 506 suppliers ( 89.08 %) are local suppliers which mainly supply cans and carton boxes using recycle materials.
lOCAl SOURCING
45
89.89% of our suppliers are local
The 1st in the Asia Pacific region to
implement Procurement Capability Roll Out,
a world-class procurement practices.
Involvement of our suppliers is instrumental in meeting our sustainability commitments. We use HEINEKEN’s Supplier Code as a guide for our suppliers to fulfill responsible sourcing practices throughout our value chain. There are four key elements that our suppliers need to abide to when signing the Code, namely, Integrity, Code of Business Conduct, Human Rights48 and the Environment.
By the end of 2015, we have achieved our target to have 100% of our listed suppliers signed the Supplier Code. We were also privileged to be the first operating company of HEINEKEN in the Asia Pacific region to meeting the requirement of 100% compliance49. This Supplier Code is applied to all suppliers of product-related and non-product related or service. For a full explanation of HEINEKEN’s Supplier Code Procedure and our four-step approach, visit HEINEKEN’s website.
COMplIANCE wITh OUR SUpplIER CODE pROCEDURE
2015
2014 548(100%)
568(100%)
450 (82%)
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SupplierPartners
11.11%International
89.89%Local
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
Suppliers Signing Supplier Code
Supplier that signed supplier code
Total Number of Suppliers
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46
In total 85% of procurement budget, spent on local suppliers, is on aluminum can as part of product packaging, while the remaining are spent on transport/logistics and other services50.
In 2015 we launched the Procurement Capability Roll Out (CRO), a HEINEKEN’s 9-month project to implement world-class procurement practices in our business operation, in order to improve end-to-end productivity and cost efficiency51. Through CRO, every Operating Companies are integrated in the HEINEKEN Global Procurement. Multi Bintang is honored to be the first in the Asia Pacific region to implement this global HEINEKEN program, which will enable us to leverage the advantages of the organisation’s global scale, as well as enhance its ability to manage suppliers and control costs at every point in the supply chain. The initiative will also reinforce value and role of procurement function, focus on sourcing and contract management, and ensure compliances to all regulations, so we can innovate and build cost leadership initiative to support sustainably company strategy. Our team leading the HEINEKEN Global Procurement Capability Roll Out Implementation consists of five people. They have to ensure the implementation in several stages, expected to be completed in June 2016.
hEINEKEN GlOBAl pROCUREMENT CApABIlITy ROll OUT
We continued to consolidate the Sales and Operations Planning (SandOP) platform to optimise integrated business planning, which was launched in 2014. We are already seeing the benefits in terms of increased operational efficiency, simpler and more structured decision-making, reductions in excess stock, more accurate sales forecasts, and better synchronisation between the commercial, supply and financial functions.
The Sampang Agung Brewery is implementing the 5S - Sort, Set in Order, Shine, Standardise, Sustain (Kaizen) - standardisation system in order to drive effectiveness and efficiency in both production and management systems. Based on the concept of eliminating waste, or any actions that incur a cost, yet do not add value, the application of the 5S has led to several improvements in productivity and safety. Staff are fully engaged in the 5S, with work teams and departments competing for awards for best performance, based on the periodic 5S audits.
47
The Sampang Agung Brewery is implementing the 5S - Sort, Set in Order, Shine, Standardise, Sustain (Kaizen) - to drive effectiveness and efficiency in both production and management systems.
100% The first in the Asia Pacific
Region to meet 100%
compliance for supplier code
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48
ADVOCATING RESPONSIBLE CONSUMPTION
48
OUR 2020 COMMITMENTS
For more information on our responsible consumption
priorities and why this is important, visit our website.
49
Beer is a natural product enjoyed by people around the world. Drinking beer in moderation is a legitimate and integral part of a healthy, balanced lifestyle. As the industry pioneer, Multi Bintang takes this issue seriously and consistently advocates responsible consumption and drinking in moderation. Our parent company, HEINEKEN is part of Global Alcohol Producers Commitment Signatories and apply very strict rules about how to market and sell our beer products, including preventing underage drinking (see www.producerscommitments.org). The same commitment is also applied to us, Multi Bintang, as one of HEINEKEN’s operating companies, as we report all of our initiatives under the commitments on annual basis to be consolidated at global level. As a responsible beer producer, we are fully committed to educating and empowering our employees, seller and retailer communities, as well as customers and the public in general, about drinking responsibly, to ensure that our beer products are sold only to those who are legally permitted to consume alcoholic beverages in Indonesia: that is people aged 21 and above.
Despite our continuous dialogue with the government on providing more effective solutions to address concerns of underage consumption, in January 2015, beer industry in Indonesia underwent a sudden regulatory change following the enactment of Ministry of Trade Regulation No. 6 2015. The regulation specifically restricts the sale of alcoholic beverages in Category A, < 5%, beer and alcopops, in minimarkets. The change in regulation has a major impact on our distribution channels and severely impacted the availability of beer for many consumers of legal drinking age. The situation did not change our commitment to advocating responsible consumption, by working closely with the government and other relevant stakeholders evident from the following initiatives.
make responsible
consumption aspirational
through our brands
build measurable partnerships
in every market in scope, aimed
at addressing alcohol related
harm
take action at an industry
level, independently and also
in collaboration with members
of industry association
ADVOCATING RESpONSIBlE CONSUMpTION ThROUGh OUR BRANDS
Product Labelling
We have for close to 20 years placed a written warning on our product labeling: 21+ as the legal drinking age, the product is not to drink during pregnancy. In 2013, we also introduced The Enjoy Heineken Responsibly logo for the Heineken® brand only and dedicated website links about more complete information on the topic, Enjoyheinekenresponsibly.com (Heineken®) and www.drink-savvy.com (Bintang) where consumers can find further information from.
As part of the HEINEKEN Company, in 2015, we were required to take some actions to update our labeling information to consumers to align with an international regulation and also HEINEKEN Company’s global policy on responsible alcohol consumption52. The reason for updating and changing our labeling information is to prevent alcohol related harm and meet our industry commitments53. We place 3 symbols:
1. Don’t drink and drive
2. Don’t drink when pregnant
3. Legal Drinking Age symbol with 21+ for Indonesia, LDA+
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Launch Campaign: 21+ Campaign
Watch the video here.
Innovation on Bintang 0.0% Category as
new product options for consumers.
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
don’t drink
and drive
don’t drink
when pregnant
Legal drinking
age symbol
with 21+ for
Indonesia, Lda+
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBKSustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
50 The same symbols must also be applied to secondary pack design (plastic wraps, cartoon boxes).
Not only that, the harmonization is done for the recycling symbols across our packaging types. The symbols include recycle symbols of steel, glass, aluminum, pet, and paper. At the moment, there is no external global/regional standardization on recycle symbol.
Specifically for the Heineken® brand as our global brand, it must comply with labelling rules on allergen declaration (emphasised typeface) and a minimum font size for all mandatory aspects. Low alcohol products must have a mandatory nutritional declaration as of December 2016. At Multi Bintang, the development and label approval was completed in January 2015 and was fully implemented for the Heineken ® brand starting February 2015.
In 2015, we provide a Consumer Care Hotline Number (0804 -1 -200300, standard charge applies) on our product labeling to provide opportunity for our consumers provide direct feedbacks to us54. An internal system has been place to filter, record and process direct consumer complaints.
51Brand activation Events and Corporate
Website
At every brand activation events or events that we sponsor, we consistently put up a clear 21+ signage (as the legal drinking age) and apply age screening procedure at the entrance gate and/or during purchase of our beer products. On a smaller scale brand activation event at outlets we also ensure that our products are served to consumers of a legal drinking age.
An age gate is applied on our beer brand page on our corporate website as well as on individual beer brand websites and social media platform. This would send a clear message to the public that as a company, we are responsible in applying responsible commercial communication and appropriately sharing information about our beer brands to those of a legal drinking age.
Product Innovation Low Alcohol Beer - A New Variant of Bintang Radler
Following the success of our innovation of Bintang Radler Lemon in 2014, in December 2015 we launched a second variant, Bintang Radler Grapefruit the same low 2% alcohol content but flavored with natural grapefruit juice with a slightly more acidic, aromatic taste. The new low alcohol Bintang Radler variants provide more options for consumers to choose from and create alternative drinking occasions as they become natural partners for lunch or a light dinner. Bintang Radler has been received very well in the market and become a strong trigger for our long line up of beer innovations in the coming years.
Natural Products with No Preservatives
All of our beer and non-alcoholic beverages uses materials that are derived from natural products i.e. malt/barley, natural juices and does not use any preservatives.
We consistently put up a clear 21+ signage
to ensure that our products are served to
consumers of a legal drinking age.
A seccond innovation variant, Bintang Radler
Grapefruit launched in December 2015
21+
0.0% Category
We are proud to be the pioneer in introducing a new product category 0.0% using the Bintang brand, a non-alcoholic malt beverage for the first time in Indonesia. The product category was created to meet the needs of consumers who want to enjoy the taste of beer but without any alcohol content .
Different from 0.0% category in other parts of the world, which the product is still produced in a brewing facility, our Bintang Zero 0.0% and Bintang Radler 0.0% are produced in a separate non-alcoholic production facility and do not involve the fermentation process. The Indonesian Government requires the production of non-alcoholic products to be done in a non-alcoholic production facility. This provides additional assurance to consumers that the beverage has zero point zero alcohol content.
In response to the needs of the market, we will continue to develop and introduce innovative new non-alcoholic products category in the coming year.
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We place 3 new symbols in our labeling
information to prevent alcohol related
harm and meet our industry commitments. Legal Drinking Age symbol with 21+
for Indonesia, LDA+Don’t drink and drive Don’t drink when pregnant
52 53
Case Study 1: 21+ Campaign and Press Conference - GIMMI Partnership
Multi Bintang has worked together with a large number of minimart operators to train their staff to make sure they do not sell to people below the legal drinking age (21+ Awareness Program: legal drinking age and ID check procedure). Since 2012, approximately 1000 outlets and 15000 staff participated in the program. Moreover we also trained hotel, restaurant and café staffers making sure they only sell our products in a responsible manner. Despite the minimarket ban, our 21+ Campaign program still continues.
In October 2015, together with GIMMI (Indonesian Malt Beverages Industry Association) and collaboration with with PT Trans Retail Indonesia (Transmart Carrefour), we held two train the trainers’ workshops on responsible selling beer for 120 head of cashiers, customer service managers and selected key staff of Transmart Carrefour at the Institute Carrefour Indonesia (ICI), Bekasi56. The
training participants were exposed to information and knowledge about what is alcohol beverage and its categorization, legal drinking age, and procedures on ID check and tips and messages on addressing alcohol responsible retailing. From the training, the knowledge and skills of participants improved significantly from average pre-test (score 76) to average post-test (score: 93). As result, 50 actions plans are ready to implement by heads of cashier and Customer Services Coordinators. Recently, all stores at Transmart Carrefour and Carrefour also placed a special cashier line right in front of beer shelves to improve greater control over beer selling and fully implement ID check57.
On 11th November 2015, GIMMI and Transmart Carrefour held a press conference to share our joint industry initiatives on alcohol responsible and our compliance to the Trade Minister Regulation No. 20/2014.
“Through this 21+ campaign, our heads of cashier and customer service officers now have the essential knowledge and skill sets that can be shared to all cashier in Transmart Carrefour and Carrefour across Indonesia. Not only being a responsible retailer, this is our commitment to increase our standard service to customer of Transmart Carrefour”
– SaTRIa HaMIdCorporate Communications General Manager, pT. Trans Retail Indonesia
57 As stipulated in the Minister of Trade Regulation no 20/2014, alcoholic beverages only can be sold to consumers above legal drinking age (21+ years old) by showing identity card and served by a store
staff, and must have a separate shelf from other products and must acquire beer retailing permit issued by the Ministry of Trade.
Build measurable partnerships & Take action at an industry levelWe try to inform about history, origin and interesting facts about beer and how it should be
enjoyed responsibly in an creative way. through developed and published a small booklet
named Beer Tale “A Story about Beer”
The Oldest Beer Recipe
Widely popular and renowned beverage product across the world, beer is believed to have come from Sumeria (now Iraq) and the oldest recipe quoting simple brewing process was transcribed in a tablet stone dated 4.000 years BC.
Migration of the Egypt
Migration of the Egypt and Ancient Rome has a significant role to the introduction of beer to the European mainland where beer grew enormously to be the most favourite drink preferred by the society.
Beer brewing had become a home brewery industries and was a very familiar scene everywhere across Europe.
development of Beer in Europe
During the Middle Ages, in which European scientists discovered scientific inventions that make people’s life easier, the brewing process was also made easier and started to be commercialized. Europe became the beer brewing centers of the world.
Innovation of the 19th Century
A well-known scientist from France, Louis Pasteur, suggested brewers to make use of pure yeast for perfecting beer fermentation process. Dr. Elion, a student of Louis Pasteur, then pursued the idea and successfully created The Heineken A-Yeast in 1886, which was subsequently used for the Heineken beer fermentation process since. Today, there are more than 40.000 types of beer available in the world.
BeerTale Booklet
We continue try to engage our stakeholders and inform them about history, origin and interesting facts about beer and how it should be enjoyed responsibly in an creative way. Back in 2014, we developed and published a small booklet named Beer Tale “A Story about Beer” with an interesting narrative and visuals. We tried to use the booklet as a way to tell positive story and correct misperception about beer in various events and engagement opportunities. The booklets are available for free in both Bahasa Indonesia and English to our employees, government stakeholders, beer enthusiasts, the media and also general public and have been received positively by the readers. We have also extended our reach to the retailers as well as our competitors and regularly being used by the brewers association for industry stakeholders. In 2015, we printed the second batch with a total of 3500 exemplars. We will continue to explore and develop a more creative way to engage our stakeholders and tell positive stories and factual information about beer category.
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Case Study 2: How You drink defines You (H.Y.d.d.Y)58
To avoid the sale of alcohol to minors in locations that we cannot strictly apply 21+ zone such as family restaurants, Multi Bintang launched a pilot initiative on responsible beer consumption in our selected Bintang brand activation events. The initiative called How You Drink Defines You (H.Y.D.D.Y) includes both socialization on responsible beer consumption to outlets and also the implementation of ID check at outlets. During the event, 21+ bracelets were given to outlet customers who have been ID checked
when they first order alcohol or beer. This helps the brand promoters, waiters or waitresses of the outlets to identify quickly those who are of a legal drinking age (21+) and avoid serving to minors. This program is well welcomed by the participating outlets, as a positive way to establish their position as a responsible outlets, and at the same time build a positive image of hospitality industry.
55
Case Study 3: Responsible Serving Training
Serving and selling alcoholic beverage responsibly requires special skill sets. In 2015, Multi Bintang partners with 6 on-premise59 outlets in Jakarta which was Eastern Promise, De Hooi, De Burse, Frank’s, Double Doors and Caz Bar to provide a half day “Responsible Serving Training” to 16 outlet staff including bar managers, bartenders and servers. This training is an extension to our existing 21+ campaign initiative with off premise retailers. Through this training, participants was provided with a strategy to identify, prevent and manage alcohol misuse including managing
intoxicated drinkers, avoiding serving alcohol to minors. The training was delivered by two international certified trainers from sales team of Multi Bintang and a lecturer from STP Bandung, the oldest and most reputable Tourism and Hospitality University in Indonesia.
59 On premise outlets in Indonesia have 3 categories: bars, restaurants and hotels.
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“This training is important to people who work within hospitality industry as it helps to improve their service performance and skill level which will directly increase customer’s satisfaction”
– ENOS JuLvIRTa, a certified trainer of
Responsible Serving Training and a lecturer at STP Bandung.
56
Case Study 4: Outreach to Consumers Groups / Communities
Throughout 2015, we extend our engagement to a greater audience including the media and consumer groups. We open our breweries to multiple stakeholders including a community of beer enthusiasts, culinary experts, bloggers and share positive stories and facts about our product category. We also provided our support on activities of communities or consumer groups by sending our brewers as speaker in their events.
wE wAlK ThE TAlK
Training for Intervention Procedures (TiPS) at NSdC
Following the Training for Intervention Procedures (TiPS) session carried out in December 2014, the 11 sales team members who have been certified gave a two hours session to the rest of sales team during the annual National Sales Distribution Conference in Medan in
57
Enjoy Responsibly day 2015 – How Cool are
You?
Multi Bintang has initiated a number of initiatives to demonstrate our commitments on advocating Responsible Consumption on the retailer front. However, this is not enough. It is important for our employees to walk the talk by being active ambassadors of Responsible Consumption, showing that Drink in Moderation is part of our culture and telling positive story of beer category.
In September60 2015, we relaunched our internal alcohol policy called Cool@Work to refresh employee awareness on responsible consumption. Each week we disseminated information about responsible consumption topic to our employees in the format of memes, video, Facebook page, Email, SMS and others. The month was closed with an internal event at both breweries, where we organised a quiz with six teams, representing each department competing against each other to answer questions about responsible consumption and Cool@Work information that already distributed. See how we celebrate our Enjoy Responsibly Day 2015 here.
Multi Bintang’s ERD opening video
from our President Director
246 Times
participated in the event
190 Employees
120 in Tangerang
70in Sampang
Agung
90%Questions answered
correctly by participants
60 Every September we celebrate Enjoy Responsibly Day together with the rest of
operation companies of HEINEKEN Company worldwide.
February 2015. The programme aimed to advance the quality of service and standards on responsible alcohol serving and hopefully will help the sales team in addressing the topic with customers and outlet staff. Read more about this case study on our 2014 Sustainability Report page 74 and view the program on our youtube channel.
TiPS programme aimed to advance the quality of service and standards on responsible alcohol serving and hopefully will help the sales team in addressing the topic with customers and outlet staff.
We relaunched our internal alcohol policy
called Cool@Work to refresh employee
awareness on responsible consumption.
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Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
Provide a healthy and
safe environment for the
employee, contractors and
visitors.
Prevent occupational
illness and injury
eliminate, minimize or
control any hazards in the
workplace
PROMOTING hEALTh & SAFETy
58
OUR 2020 COMMITMENTS
For more information on our health and safety guideline
and why this is important, visit our website.
59
In 2015, we paid particular attention to heightening transparency and accountability around safety, proactively addressing potential hazards before accidents occur61. To achieve our commitment in health and safety at work, we ensure there is a monitoring system in place and conduct several education and awareness programs for production staff to office personnel, such as safety E-Learning (online learning about safety issue), road safety alert (campaign about road safety), defensive driving training, accident investigation training and General AK3 (Ahli Keselamatan dan Kesehatan Kerja) certification for Specialist Work Safety and Health. This was an effective approach enabling
us to cover all employees. We also have a dedicated committee for Work Safety and Health consisting of a representative from management and every department in our organisation and four dedicated employees: two Safety Health Environment Manager from two breweries, one HR Commercial, one Health and Safety Manager62. On annual basis, we hold a general medical checkup for all of our employees.
Although we have implemented all the safety procedures very carefully, but still work accidents can occur due to negligence or accidents that occur outside working hours.
SAFETy & hEAlTh AT wORK
Fixed -term employement contract
Permanent employement contract
5
6
11
Incident
1
MinorAccident
104
142
1
37
Near Miss
1
1
SeriousAccident
1
44
grandtotal
Contractor
Grand Total
Accident - Incident Based on Employment Type63
Contractor
Hand exposed glass
hand scraped PPE box
the affected hand glass
plate and scraped skin burns on the hands
Permanent employee
back injury when opening the valve
exposed tooth plate at the time of grinding
hands exposed to liquid chemicals
exposed piping hot hands
exposed piping hot hands
Minor accident
Permanent employee
Permanent employee: Falling off the bike
Contractor
Having a ladder at work
The following are some of the reported accidents that occur in the plant and outside the plant in 2015:
6 Multi Bintang Employees5 Contractors
11 incidents
We conducted several education and awareness programs such as safety E-Learning, Road Safety
Alery, Defensive Driving Training, Accident Investigation and General AK3 Certification for Work Safety
and Health Specialist.
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110
1551
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60
As a company producing and selling alcoholic beverages, a policy to set moderate consumption in work environment as well as promote responsible consumption outside the organisation is needed. Cool@Work is our alcohol policy at work derived from HEINEKEN Company where it provides preventive action and support program. In 2015, we relaunched our Cool@Work policy and release an employee survey on their awareness about responsible consumption, alcohol policy at work and drinking behaviour. The result of the survey will be used as a reference for Health and Safety Manager to prepare future program and communications to employees. The company also have an Employee Assistant Program to help any employees, who are facing challenges with their drinking pattern. To date, no employee have been indicated to have alcohol behaviour challenges.
COOl@wORK
Driving a motor vehicle is part of business daily activities of most Multi Bintang employees particularly the Sales team. We equip employees with knowledge about safety driving behaviour by providing a Defensive Driving Training. Started from recruitment process, apart from employee’s health check, we ensured the candidates are fully licensed. We also communicated the Road Safety Golden Role as follow:
DEFENSIVE DRIVING TRAINING
61
Road transportation is an essential element throughout the Multi Bintang value chain, though it can be a high-risk activity due to unpredictable traffic conditions and low safety awareness among road users.
In 2015, we continued to run our safety driving campaign. A compulsory defense driving training was held in Jakarta, on 2-3 July 2015 combining theory and practical sessions over two full days and closed with participants making a pledging to always prioritise safety when driving. In total 25 sales personnel participated in the session. Once in every 3 years, they are required to join a refreshment training. As part of the evaluation, two months following the training, trainer will contact each participants to evaluate material and safety driving technique.
Do not drink and drive
Do not use mobile phone while driving
wear seatbelt
Drive in recommended speed
have a valid driving license
142 near miss case
104 Multi Bintang Employees, 37 Contractors,
1 Contract Employee
2 accidentsContractor
No OdR (Occupational disease rate)
No fatality
1 Serious accident(Contractor)
people
83%
190From
from Operator level to Senior Manager
participated in the
Survey (158 people)
people as
5 Committee
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s
2 HR Managersfrom 2 Breweries,1 HR Commercial,1 Corporate Communicationand Sustainability Manager,1 Health Safety Manager
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Case Study 2: vaccine Influenza, Cervix and Hepatitis for Employee
Since 2005, Multi Bintang has conducted several programs and periodic free vaccines to all employees and for the new recruits including:
1. Influenza Vaccines: in mid-2003, there was an outbreak of avian influenza in the Asia Pacific region including Indonesia with many causalities for birds and in early 2005 for humans. The company had since provided flu vaccines on periodical basis to all employees.
2. Hepatitis B Vaccines: since 2006, the company provides Hepatitis B vaccine to all employees as it is considered as a chronic disease although not contagious.
3. Cervical Cancer Vaccines: in 2012, the company provides a cervical cancer vaccine to all female employees. The company realized that not only female employees are entitled to receive this vaccine, but the wife and children of employees are also entitled to a vaccine facility to maintain the health of the employee’s family. In 2016, the company will provide a cervical cancer vaccine program to all new employees and employees (female) who have not been vaccinated previously coupled with the wife and daughters of employees who are willing to receive the vaccine.
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To better engage employees, safety messages are delivered through fun activities as well as in the form of training and drills. STOP or Safety Training Observation Program is a program developed by the Safety, Health and Environment division to encourage employees to care and more alert with activities or behavior not in accordance to procedure and standard of occupational safety. The purpose of this program is to STOP activities that one does and remind him that what he did is harmful for his and others’ safety.
On 24 April 2015, Sampang Agung Brewery organized the Safety Training Observation Program, STOP Quiz in conjunction with the HEINEKEN’s annual World Safety and Health Day. The training involved:
• Introduction of what STOP is • Development of training material in video
format• The use of WhatsApp application to report
STOP
• STOP benchmarking across divisions, • Integration into the Total Productive
Management system,• Continuous STOP reporting by employees.
The most engaged employees who do regular reporting on STOP will be the winner. Through such activities, we can promote safety based behavior through positive encouragement. At the event, awards were presented to employees for the quality and quantity of their safety reports.
In today’s volatile world, employees must always be alert to the possibility of unexpected events and threats. Staff at Sampang Agung Brewery tested their readiness in July 2015 when they had to deal with a simulated riot at the brewery gates. The simulation provided an opportunity to test various safety and evacuation procedures and learn valuable lessons on how to anticipate and manage such situations in future.
Case Study 1: Quiz STOP
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64
GROwING wITh COMMUNITIES
For more information on our community investment
priorities and why this is important, visit our website.
65
Where we have the opportunity to help communities prosper, we do so. It is good business and it can support us in the long-term. Our community investment covers local communities surrounding our business operations and also beyond. It is not limited to just financial donation, but also program development such education and capacity building. In the coming year of 2016, we plan to do a more comprehensive community needs assessment in the area of our breweries and NAB plant to ensure that our community programs able to meet and address the local challenges.
Our overall contribution to the communities has decreased by 65% to around IDR 454.8 million in 2015 from IDR 1.3 billion in 2014. This is due to impacted company revenue following minimarket ban and a series of macroeconomic shocks that contributed to weakened domestic consumption and a slowing of Indonesia’s economic growth rate to 4.8% in 2015.
INVESTING IN OUR COMMUNITIES64 65
Our contribution to communities by forms of direct contribution
Year Cash In-kind time
Cause of direct contribution & breakdown if community’s investment program
Year 2015 2014 2013
IdR 454,833,250 IdR 1,361,958,664 IdR 883,408,713TOTaL
Our contribution to Community
Year Philanthropy Commercial Initiatives Community Investment
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Our overall contribution to
local communities for them to
prosper.
Rp. 454.8 million
We contribute not only financialy but
also development such as education
and capacity building.
OUR 2020 COMMITMENTS
our business brings us into close contact with millions of consumers and stakeholders daily.
Where we have the opportunity to help communities prosper, we do so.
it’s good business and it can support us in the long-term.
IDR 819,177,912 (60%)
IDR 1,297,083,456 (95.2%)
IDR 67,591,000 IDR 161,727,952 IDR 11,478,700
IDR 8,245,750 IDR 30,681,625 IDR 79,433,013
IDR 312,616,750 (69%)
IDR 2,080,000 IDR 61,053,200 IDR 60,724,200
IDR 1,000,000 IDR 50,000,000 IDR 125,916,000
IDR 4,351,600 (0.3%) IDR 60,524,008 (4.4%)
IDR 745,126,813 (84%)
IDR 869,414,713 (98.4%)
IDR 0 IDR 403,348,000 IDR 0
IDR 334,697,500 IDR 665,147,887 IDR 499,856,800
IDR 41,309,000 IDR 0 IDR 0
IDR 4,073,000 (0.5%) IDR 9,921,000 (1.1%)
2013
2013
2014
2014
2015
2015
IDR 334,607,500 (74%)
Environment
Education
Art/Culture
Emergency Relief
Health
Social Welfare
Others(Public Facilities)
IDR 142,216,500 (31%) 0
IDR 250,000,000 (18%)IDR 129,225,750 (26%)IDR 292,781,152 (22%)IDR 138,281,900 (16%)0
0
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66
Multi Bintang is fully committed to support the growth of tourism and hospitality industry in Indonesia. It is our firm belief that the tourism and hospitality industry will continue to flourish, be an economic driver and open up employment opportunities for many young Indonesians.
Since 2013, we intensified our support towards the hospitality and tourism industry by partnering with reputable tourism and hospitality academies as well as food technology or any technical faculties related to our industry across Indonesia. We shares our resources, expertise and knowledge about brewing industry and products, as well as provided firsthand learning opportunities to the students. Recognizing that these students are future leaders of the industry, we opened our doors to them to learn about the beer brewing process through brewery visits and how to provide excellent customer service through six star service training on excellent beer pouring and serving.
UNIVERSITy pARTNERShIpS
In August 2015, Multi Bintang sponsored the bar laboratory renovation for Sahid Tourism and Hospitality Academy. The bar is occupied on daily basis by lecturers and students of Food and Beverage classes to do practical learning.
2015 Activities related to Multi Bintang’s University Partnership
8
7 2 new MOuswith Tourism and Hospitality Academies and 1 renewal STP Bali & STP Sahid (new) and STP Bandung (renewal).
67
Case Study 1: 100 Mak Nyus Bali by Bondan Winarno
As Indonesia’s main tourist destination, Bali is crowded with international chains and a buffet of world cuisines. However, traditional Balinese foods are still lagging behind. With a mission to preserve Indonesian local culinary and strong presence of our Bintang brand in the island of Gods, Bali, Multi Bintang agreed to become the sole research sponsor of “100 Best Food Bali” Book by Bondan Winarno, the Indonesian renowned culinary expert. After one month research in Bali, on October 2015 the book was published in both Bahasa and English
and becomes one of the book was exhibited in Frankfurt Book Fair 2014. The book is all about 50 Best Balinese Traditional Cuisines and 50 Best Restaurants in Bali, a book to discover Balinese Culinary. The book is believed to be the most sought after culinary book written by Bondan Winarno and his co-writers from Jalansutra community, Harry Nazarudin and Lydia Tanod. View the video of the official book launch event and the authors’ foreword about the book in Denpasar Bali last January 2016 in Multi Bintang youtube channel.
COMMuNITY PaRTNERSHIPS
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brewery visits
to
with a total of 385 visitors2 tourism and hospitality academies,6 engineering faculties
Tangerang Brewery
Sampang Agung Brewerybrewery visits
to
with a total of 340 visitors(all non-hospitality academies)
3 Guest lecturesessions
at universities/academies
2015
2014 4 university partnerships
6 university partnerships
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68
Case Study 2: Our Research Contribution on Christian university duta Wacana
Multi Bintang participated as one of the speakers in a Workshop and National Conference held by students majoring Biotechnology Christian University Duta Wacana Yogyakarta with theme “Research Contribution on Industry” on 18-19 September 2015. Through this event, we had the opportunity to share and introduce Multi Bintang as a fermentation based industry.
In addition, we also shared about our state of the art technology and our industrial best practices such as Total Productive Management (TPM), 5S66 and standardisation system as well as our sustainability initiatives in our business operation. Around 350 people participated in the conference.
69
Case Study 3: Community Philanthropy
In 2015, both Tangerang and Sampang Agung Brewery participated in the celebration of Eid Fitri and Eid Adha by distributing qurban meat from 59 goats and made financial donation to approximately 2000 families, orphans and elderly people in need in the surrounding areas, sub-district of Poris Gaga in Batuceper District near Tangerang, and 7 villages in the vicinity of Sampang Agung Brewery. The program was facilitated by Multi Bintang Labor Union, local government and military. We also continued to provide supports to activities of local communities
surrounding the breweries, during national events such as Indonesia’s Independence Day, local youth gathering, religious festive, Ruwat Desa and so on. In addition, we also supported the construction and renovation of a number of public facilities, such as schools and mushollas. The breweries also provided milk and nutrition supplements for children through local posyandu, the village health clinic in Batu Ceper. To support employees’ health and wellness, the company organised yoga and futsal games.
66 Sort, Set in Order, Shine, Standardize, Sustain (Kaizen)
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VALUES & BEhAVIOR
For more information on our sustainability
report, visit our website.
70 71
We value a passion for quality, brands that people love, enjoyment of life, respect for people and for our planet. Our values represent what we stand for as a corporate citizen, a business partner and an employer. They inspire us and are embodied by our employees at every level, function and geography of our business.
A set of behaviours is introduced to support companies in achieving its business target or goals while at the same time helping to strengthen its corporate culture. Through exercise such as climate survey, Multi Bintang can directly capture and measure the perception of employees in totality.
A series of workshops were carried out throughout 2015 in across all divisions to learn what employees understand about our culture. The insights gathered during these workshops were then formulated into the following three key behaviours68 that we believe relevant to our business and fit for our daily operations:
These behaviours are expected to instill a culture that Multi Bintang wants to nurture to sustain its business operations and existence in the country in many years to come.
Internally since 2014, we have launched the Speak up Policy, HeiRules and Code of Business Conduct and communicated it throughout the organisation, to ensure our people all over the world understand what is expected of them when acting on behalf of the Company. It helps achieving our business objectives, but also minimises financial risk such as corruptions, fraud and bribery and damage to our reputation69. The Code is supported by a variety of communication and training materials. To learn more about this, read our 2014 Sustainability Report page 94 from our website.
BEhAVIOUR & CUlTURE67
68 Previously in 2014, Multi Bintang introduced 6 behaviours which include 1).
Put Safety First, 2). Drive to Win, 3). Take Initiatives, 4). Be Accountable, 5). Foster
Collaboration and 6). Engage and Inspire Other.
A
Be Accountable
C
Communicate Openly
Collaborate in Trust
T
A C T
Values & Behaviors Appendices & GRI IndexThe Big Picture Our Focus AreasValues & Behaviors Appendices & GRI IndexThe Big Picture Our Focus Areas
Internally since 2014, we have launched the Speak up Policy, HeiRules and Code of Business
Conduct and communicated it throughout the organisation, to ensure our people all over the world
understand what is expected of them when acting on behalf of the Company.
Passion for quality enjoyment of lifeRespect for people and
for our planetbrands that people love
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Multi Bintang’s people are our most valuable asset. Particularly during this challenging year, their talent, commitment and creativity have helped sustain the business and drive it forward. As an open, forward-looking company, we are committed to providing our people with opportunities to develop their talents and broaden their experiences in a variety of settings. At the same time, as a member of HEINEKEN Company’s global network, we benefit from being able to tap into insights from around the world by creating a multinational team at the operational level as well as the director level.
As of 31 December 2015, Multi Bintang employed 475 people, compared to 494 people in 2014. The proportion of permanent employees has increased: in 2015 there were 447 permanent employees and 28 contract employees, whereas in 2014 the figures were 448 and 45, respectively. More than 75% of employees have a Diploma, Bachelor’s or Master’s degree. Around 17% of employees are female. There are 208 number (43.79%) of employees covered under Collective Labor Agreement Health and Safety, compared to last year 21071 72 73.
OUR wORKFORCE
Multi Bintang currently has four international staff, from Uzbekistan, France and the UK, in non-managerial positions. The diversity of experience, approach and thinking that these expat staff bring enriches our team and pushes them to approach challenges with a fresh perspective74.
At the same time, eight Multi Bintang employees are applying their own insights and sharpening their skills in HEINEKEN operating companies in three different countries. This is a motivating factor for local staff, as it proves that our people are able to compete at the global level. Moreover, the Company will benefit from the international experience gained by our expat employees when they rejoin the team in Indonesia.
We have a standard framework for performance management which was put in place in across the organisation in 2010. Each employee has a personalised set of Key Performance Indicator that relate to both individual performance and company performance in general.
475447 81
86 389
employees
permanentemployees
permanentemployees
28contract
employees
5contract
employees
366permanentemployees
23contract
employees
Type
TOTaL
Malefemale
TOTaL EMPLOYEE PER dEC 2015
73
We seek to provide be a competitive employer by providing rewarding career opportunities as well as competitive remuneration. Our pay policy and practices are benchmarked annually against the market, especially similar companies in the FMCG industry, and we offer a comprehensive benefit package that includes health insurance, life insurance, disability coverage, maternity benefits and a pension75. Medical benefits are also extended to part-time employees.
Multi Bintang seeks to create a balanced work-life environment by providing opportunities for employees to develop personally as well as professionally. English language training and yoga classes are among the activities on offer, and throughout the year we organise themed outings, team building activities and family days to help employees stay motivated and inspired to perform at their best.
VOlUNTARy TURNOVER RATE VS. OThER INDUSTRyTOTAl EMplOyEES 2013 - 2015
2013 2014 2015
470
392
78
493
406
87
474
388
86
Total
Man
Woman
TURNOVER RATE76
53 EMplOyEESRESIGN
(10.75% FROM 493 TOTAL EMPLOYEES)
2014
5
57 EMplOyEESRESIGN
(12.03% FROM 474 TOTAL EMPLOYEES)
2015
4847 10
8 Multibintang employees were assigned
for International assignment in three
different countries within HEINEKEN
network.
Each employee has a personalized set
of Key Performance Indication to make
sure of high perfomance
English language training and yoga classes are among the activities on offer, and throughout the
year we organise themed outings, team building activities and family days to help employees stay
motivated and inspired to perform at their best.
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70
2012 2013 2014 2015 1st half
5.2%Mining
Mining Services
Automotive
Chemical
Consumer goods
Life Science
high Tech
All industries
8.2% 6.3% 4.7% 1.5%
5.5%
6.6%
5.4%
6.2%
9.1%9.5%
5.6%
6.0%
9.6%
2.4%
2.1%
3.9%
4.9%
3.6%8.8%9.1%8.8%
10.5%
11.3%
11.7%
10.1%9.4%
12.4%
3.3% 3.6% 1.6%
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74We offer a suite of benefits including disability coverage, health care, life insurance, maternity and retirement provision for full time employee77. And for our part time employees also receive medical benefits. Through our internal communication and also union labor, we always inform updated employee benefits to all employee.
2015 was an important year for industrial relations in Multi Bintang. We renewed our Partnership Agreement between Multi Bintang and Employee for period 2015-201778. This 15th agreement is a strategic component for our employment practices, which set requirement and fundamental work under negotiation and mutually agreed by union and management.
Due to the new agreement, several articles about benefit were changes. There are also some changes for employee benefit, such as transport allowance regarding to increasing public transportation rate.
Employee can freely join union labor that affiliated to PUK SP RTMM FSPSI both in Tangerang and Sampang Agung. Our regulation for employee based
EMplOyEE BENEFIT
We are committed to giving our people the opportunity to maximise their potential through a diverse range of education, training and personal development options. At the same time we are constantly reassessing the skills and capabilities, needed to support Multi Bintang’s medium and long-term growth plans.
Development programs are delivered through a mix of formal classroom-based learning, on the-job training, e-learning and information sharing sessions, covering a range of functional and technical competencies as well as soft skills and leadership skills. All employees draw up a Personal Development Plan with their line manager, which helps to ensure that both the employee’s
EMplOyEE TRAINING & EDUCATION
75
30%
20%18%
3%1%
9%
15%
1%
3%
EMplOyEES NUMBERS pER DIVISION
on Business Code of Conduct, UU Ketenagakerjaan (Employment Law No. 13 Year 2003), Agreement Partnership 2015-2017 and others law approved by the Multi Bintang Management as well HEINEKEN Company79.
personal and career aspirations as well as the Company’s current and future business needs are accommodated.
Due to the impact of the Minister of Trade’s Regulation No. 6/2015 on the business, the annual training program was significantly curtailed, as activities were deferred in line with the Company’s cost management initiatives. Average training hours per person therefore dropped from 8.78 hours in 2014 to 3.13 hours in 201580. Several training programs did go ahead, including the First Line Manager Development Program (FLM-DP) in mid-2015. This activity, which is part of the HEINEKEN Company’s leadership curriculum, aims to equip Multi Bintang’s First Line Managers (FLM) with globally applied leadership methodologies and tools. As well as ensuring that HEINEKEN’s international standards are upheld in Indonesia, it also helps to improve the transferability of Multi Bintang’s FLM should opportunities arise elsewhere in HEINEKEN Company’s global network.
In 2015, there were increasing number training sessions from 216 in 2014 to 261 sessions. This increase was partly due to:
1. Compulsory Training for all employees, such as e-learning modules Safety, e-learning module IT security, e-learning module Business Conduct guide from HEINEKEN Company.
2. Training of introduction for production of functional competence.
3. Leadership training.
We are proud to report that Multi Bintang’s own people are now wowing the world. Providing opportunity for career movement may be limited in a small organisation. However, being Part of the HEINEKEN Company, we have been able to collaborate with other Operating Companies within the Asia Pacific Region to create the nurturing ground for our Talents. Since 2012, there is an increasing number of employees being assigned overseas. In year 2015 alone, there are 7 employees assigned to 4 different countries in various functions, and there are more to come.
This benefits the Company in two ways: it demonstrates to our people that they match up to global standards; and the experience of diverse approaches and new ways of thinking will enrich our operations when our ‘expats’ eventually rejoin our team in Indonesia. We are also currently gaining from this diversity by having several international members on our team, including staff from the Netherlands, the UK, France, Uzbekistan, Singapore and Malaysia.
EMplOyEE DEVElOpMENT
Encouraging people to enjoy beer responsibly and in moderation is at the core of our social mission. To be able to communicate this successfully to the public and create a more positive perception of beer, we have started with our own employees by spreading the message that drinking in moderation is cool, through annual events such as ‘Enjoy Responsibly Day’. Through this event, we are able to engage employees and have a dialogue through where company can engage, quizzes and discussions.
EMplOyEE ENGAGEMENT
TRaINING SESSIONS
were done in the year 2014
We have international staff members from
around the world including Netherlands, UK,
France, Uzbekistan, Singapore and Malaysia261
Values & Behaviors Appendices & GRI IndexThe Big Picture Our Focus AreasValues & Behaviors Appendices & GRI IndexThe Big Picture Our Focus Areas
President Director Office
Finance
Supply Chain
Marketing
Sales
Tangerang Brewery
Sampang Agung Brewery
hR
Corporate Affairs
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2.62
3.23
76
AVERAGE TRAINING hOURS
Every Multi Bintang employee is across all level are subject to at least two sessions of performance review in the beginning of the year to set Performance targets and review of last year performance and mid-year review to assess the progress81.
*Total number employee training is the number of employee trained during a year, means that 1 employee may join more than 1 training session
77
This decrease occurred because the e-learning module only requires an average of 30-45 minutes of employee time. In addition, the classroom training format is not a lot to do because most of the material must be available in e-learning.
In addition, everyone in the organisation is required to internalise the ‘Responsible Commercial Code’, HEINEKEN Company’s global guideline, through e-learning. In this way we ensure that employees are able to deliver accurate information about drinking beer and are empowered to become ambassadors for responsible consumption.
Good communication is a prerequisite for a productive, safe and creative workplace. We consistently encourage opportunities for meaningful two-way dialog between management and staff, and in 2015 we launched TuesdayAMA, an innovative internal communication platform, powered by WhatsApp, for employees to ask management about anything related to the company. It is also an effective forum for employees to share creative and practical ideas with management. This initiative has strengthened employee engagement, made them feel valued and enabled emerging issues to be dealt with quickly.
Men
women
9.74
7.302014 2015
Case Study 1: Launching New Corporate Identity
More than 80 years Multi Bintang has been serving customers with the enjoyment of quality beverages and establishing Bintang as an Indonesia’s iconic and loved beer brand. However, we have expanding our brand portfolio to delighting consumer with new experience. Behind this brands, none of this positive growth will be possible without driven and inspired people. And with the continual transformation or our most valuable asset, our people, we know we can go from strength to strength and deliver sustainable star performance. This time for Multi Bintang known for our champion brands, our people and performance so we can WOW Indonesia.
The development of Multi Bintang’s new corporate identity was started in the Q4 2013 in which the process involved a series of in depth interviews to gather some insights with selected number of employees. The interview and insights gathering were carried out by a brand consultancy which later helped the Corporate Identity team to craft a solid brief for the design agency to work on the logo identity and its narrative. The identity was then officially launch on 2nd February 2015 in two business locations, Tangerang and Sampang Agung, and relayed live to 14 sales offices across Indonesia via closed YouTube channel, allowing all employees to be a part of this exciting new step in Multi Bintang’s journey.
Case Study 2: Work and Life Balance for Employee
Multi Bintang seeks to create a balanced work-life environment by providing opportunities for employees to develop personally as well as professionally. English language training and health and wellness program such as yoga classes and futsal are among the activities on offer, and throughout the year we organise themed outings, team building activities and family days to help employees stay motivated and inspired to perform at their best.
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4 1814 2 42
23 5633 21 4019
Grand
total
Corporate Affairs
Finance
Human Resources
Marketing
Supply Chain
President Director Office
Organization Group Name
Female maleGrand
totalFemale male
2014 2015
10 122 14 217
344 53074963 14597 78997302
66 9529 70 13161
13 5845 34 4511
Sales 25 219194 53 749696
Grand Total 485 57655280 791 88898098
divisionaverage hours
2014
4.79 3.47
8.11
10.36
9.39
7.48
7.49
3.16
0.50
1.83
3.41
13.83 4.69
4.84Human resources
MarketingPresident DirectorOffice
Sales
Supply Chain
average hours 2015
AVERAGE IN TOTAl 8.78 3.13
Corporate Affairs
Finance
Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBKSustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK
AppENDIx 1: DElOITTE ASSURANCE REpORT FOR hEINEKEN GlOBAl SUSTAINABIlITy REpORT 2015
To the stakeholders of Heineken N.v.
The Executive Board of Heineken N.V. (‘the Company’) engaged us to provide limited assurance on the Sustainability Report 2015 (leading to a ‘conclusion’). This report comprises a description of the policy, the activities, events and performance of Heineken N.V. relating to sustainable development during the reporting year 2015.
Limitations in our scope
The report contains prospective information, such as ambitions, strategy, targets, expectations and projections. Inherent to this information is that actual future results may be dierent from the prospective information and therefore may be uncertain.
We do not provide any assurance on the assumptions and feasibility of this prospective information.
References in the report to the sustainability section of the Company’s website and to other documents are outside the scope of our assurance engagement. We did not perform any assurance procedures on information other than for the year 2015.
Management’s responsibility
Management of the Company is responsible for the preparation of the report in accordance with the Sustainability Reporting Guidelines GRI G4 Core option, including the identification of the stakeholders and the determination of material subjects. The disclosures made by management with respect to the scope of the report are included in Appendix A ‘Reporting basis’.
7878 79
Furthermore, management is responsible for such internal control as it determines is necessary to enable the preparation of the report that is free from material misstatement, whether due to fraud or error.
auditor’s responsibility
Our responsibility is to express a conclusion on the report based on our review. We conducted our review in accordance with Standard 3810N “Assurance engagements relating to sustainability reports”. This requires that we comply with ethical requirements and that we plan and perform our work to obtain limited assurance about whether the report is free from material misstatement.
A review is focused on obtaining limited assurance. The procedures performed in obtaining limited assurance are aimed at the plausibility of information, which does not require the same exhaustive gathering of evidence as in engagements focused on reasonable assurance. The procedures performed consisted primarily of making inquiries of management and others within the Company, as appropriate, applying analytical procedures and evaluating the evidence obtained. Consequently, a review engagement provides less assurance than an audit.
We believe that the evidence we have obtained is sucient and appropriate to provide a basis for our conclusion.
Procedures performed
Our main procedures included the following:
• Performing an external environment analysis and obtaining an understanding of the sector, relevant sustainability issues, relevant laws and regulations and the characteristics of the organisation.
• Evaluating the acceptability of the reporting policies and their consistent application, such as the assessment of the outcomes of the stakeholder dialogue and the reasonableness of estimates made by management.
• Assessing whether the sustainability information has been prepared ‘in accordance’ with the Sustainability Reporting Guidelines GRI G4 Core option.
• Evaluating the design and implementation of the systems and processes for data gathering and processing of information as presented in the report.
• Interviewing management or relevant staff responsible for the sustainability strategy and policies at corporate level.
• Interviews with relevant staff responsible for providing the information in the report, and responsible for carrying out internal control procedures on the data and the consolidation of the data in the report.
• Reviewing internal and external documentation to determine whether the sustainability information, including the disclosure, presentation and assertions made in the report, is substantiated adequately.
• Analytical review of the data and trend explanations submitted for consolidation at Group level.
Conclusion
Based on our procedures performed, nothing has come to our attention that causes us to conclude that the report, in all material respects, does not provide a reliable and appropriate presentation of the Company’s policy for sustainable development, or its activities, events and performance relating to sustainable development during 2015, in accordance with the Sustainability Reporting Guidelines GRI G4 Core option.
Rotterdam, 6 April 2016
Deloitte Accountants B.V. P.W. Seinstra
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AppENDIx 2: REpORTING BASIS
Scope
This report covers the performance of two of our breweries at Tangerang and Sampang Agung, Non-Alcoholic Beverage (NAB) Plant as well as its subsidiary, PT Multi Bintang Indonesia Niaga from 1 January 2015 up to and including 31 December 201582.
Reporting Systems83
• Safety data is reported quarterly via a HEINEKEN global system named Accident Reporting and Investigation Software (ARISO) system.
• Our breweries and the NAB Plant submit environmental data on a monthly basis in the Business Comparison System (BCS) managed and validated by HEINEKEN Global.
• The HEINEKEN’s Green Gauge internal reporting system allows us to monitor and report quarterly progress against 11 key areas, related to our commitments/global targets.
• Other HEINEKEN global reporting systems include the Contract Lifecycle System (CLM) and the EcoVadis Platform for Supplier Code and performance information, and Ethics Point for ‘Speak Up’ data.
Reliability and accuracy of data
Various data points are confirmed internally through staff and systems that have been established to collect and review that data. Subject matter experts are involved at various
levels to validate and challenge the data and process. Our KPIs progress, reporting processes and data validation is monitored by HEINEKEN Sustainable Development Team, on a continuous basis, through an integrated reporting system where representatives of the Process and Control Improvement function working together (BCS governance and global Health and Safety).
The accuracy of the supplied safety data is checked. The safety reporting parameters should meet set parameter requirements. If parameters do not meet these requirements, the Safety and Health Manager will be requested to correct data and the Human Resources Director to validate it within the ARISO reporting guidelines. The accuracy of environmental data depends on the method of measurement, the calculation procedure and whether estimates have been used.
81
REFERENCE INFORMATION
a Multi Bintang Publication
Corporate Affairs Division
Head Office
Talavera Office Park 20th FloorJl. Let. Jend. TB Simatupang Kav. 22-26Jakarta 12430, IndonesiaJakarta 10032T. 021-7592 4611F. 021-7592 4617W. www.multibintang.co.id
Let us know your thoughts
Which aspects of Brewing a Better Worldare working well? Where do you thinkwe could do better? We look forwardto hearing your views and [email protected]
Bambang Britono
Corporate Affairs Director
Ika Noviera
Corporate Communications and Sustainability Manager
Oesha Thakoerdin
Editor
Creative faith
Graphic designer
Photography
Collections of Multi Bintang
We would like to thank the wider Multi Bintang community and friends for providing support, information and energy for this 2015 Sustainability Report.
AppENDIx: ABBREVIATION
WSva
PdaM
ak3
aRISO
Water Source Vulnerability Assessment
Perusahaan Daerah Air Minum / Local Water Company
Ahli Keselamatan dan Kesehatan Kerja / Work Safety and Health Expert
HEINEKEN global system named Accident Reporting and Investigation Software system
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SPECIaL THaNkS TO
Nasthasya PrimaBeatrice SusantoDidik SuharsonoHerwanda KarliChew Boon HeFerry SitepuSilvanus FandoKosmas PurnamaLuhut PakpahanHandi TendiMarcius SinagaKarissa LiuganFahmi GadingPurbo WicaksonoAndijaya ChandraWisnu WibowoRonald RantiHning WicaksonoSantoso SulastopoWahyu WijayantoRonald TanesiaDesy UtamiErwien RahadiyantoRudy HidayatJenny TumewuNathalia NugrahaniFahmi RajendraRetno BudisusantiBaroto Muhammad AnasArifin
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8282
GRI G4 GENERAL STANDARD DISCLOSURESMulti Bintang Indonesia Sustainability Reporting 2015
Multi Bintang Sustainability Reporting 2015 in accordance to the option “Core”:
• General Standard Disclosures: G4-1, G4-3 up to G4-34, G4-56.
• Specific Standard Disclosures (DMA and Indicators) focus only on Material Aspects. For each identified Material Aspect, MBI discloses the Generic DMA and at least one Indicator.
• MBI’s 15 Material Aspects: (1) Governance and Business Conduct, (2) Sourcing Sustainably, (3) Water Management, (4) Energy and Carbon Footprint, (5) Waste Management, (6) Occupational Health and Safety, (7) Employment Practices (including training and development and employee engagement), (8) Responsible Consumption (including staff alcohol responsibility and responsible marketing), (9) Economic impact, (10) Regulatory compliance and excise, (11) Product safety, quality and hygiene (including transparent ingredient information), (12) Product innovation, (13) Community development and investment, (14) Stakeholder communications, (15) Public policy advocacy
GENERaL STaNdaRd dISCLOSuRE
No. IndexGRI G4
IndexDescription of the Disclosure
GRI G4 Indicator Applicability indicated
by MBI
Location of the Disclosure(#page and
/or #web link)
Strategy and Analysis
G4-1Statement from the most senior decision-maker of the organization (such as CEO,
chair, or equivalent senior position) about the relevance of sustainability to the
organization and the organization’s strategy for addressing sustainability.FuLLy APPLIED 6, 7
Organizational Profile
G4-3 Report the name of the organization. FuLLy APPLIED 5
7 G4-4 Report the primary brands, products, and services. FuLLy APPLIED 8
G4-5 Report the location of the organization’s headquarters. FuLLy APPLIED 5
G4-6Report number of countries where the organization operates, and names of countries
where either the organization has significant operations or that are specifically
relevant to the sustainability topics covered in the report.FuLLy APPLIED 5
11, 13 G4-7 Report nature of ownership and legal form. FuLLy APPLIED 9
9 G4-8Report markets served (including geographic breakdown, sectors served, and types of
customers and beneficiaries).FuLLy APPLIED 8
83
8, 10, 14 G4-9 Report scale of the reporting organization. FuLLy APPLIED 8, 9
70 G4-10
a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and
gender.
c. Report the total workforce by employees and supervised workers and by gender.
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the organization’s work is performed by
workers who are legally recognized as self-employed, or by individuals other than
employees or supervised workers, including employees and supervised employees
of contractors.
f. Report any significant variations in employment numbers (such as seasonal
variations in employment in the tourism or agricultural industries).
FuLLy APPLIED 72
71 G4-11 Report percentage of total employees covered by collective bargaining agreement. FuLLy APPLIED 72
23 G4-12 Describe the organization´s supply chain. FuLLy APPLIED 18, 19
G4-13Report changes regarding the organization’s size, structure, ownership, or its supply
chain.FuLLy APPLIED 5, 6
17 G4-14Explanation whether and how the precautionary approach or principle is addressed by
the organization.FuLLy APPLIED 14
G4-15List externally developed economic, environmental, and social charters, principles, or
other initiatives to which the organization subscribes or endorses.FuLLy APPLIED 29
32, 33 G4-16 Report Memberships. FuLLy APPLIED 29
Identified Material Aspects and Boundaries
82 G4-17 List all entities / Report whether any entity is not covered in the report. FuLLy APPLIED 80
83 G4-18 Report process for defining report content and aspect boundaries. FuLLy APPLIED 80
20 G4-19 List all the material Aspects identified in the process for defining report content. FuLLy APPLIED 17
18 G4-20 Report for each material Aspect, report the Aspect Boundary within the organization. FuLLy APPLIED 16
19 G4-21 Report for each material Aspect, report the Aspect Boundary outside the organization. FuLLy APPLIED 16
21 G4-22Report the effect of any restatements of information provided in previous reports, and
the reasons for such restatements.FuLLy APPLIED 17
22 G4-23Report significant changes from previous reporting periods in the Scope and Aspect
Boundaries.FuLLy APPLIED 17
Stakeholder Engagement
28 G4-24 Provide a list of stakeholder groups engaged by the organization. FuLLy APPLIED 24
27 G4-25 Report the basis for identification and selection of stakeholders with whom to engage. FuLLy APPLIED 23
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30 G4-26Report the organization’s approach to stakeholder engagement, including frequency
of engagement by type and by stakeholder group, and an indication of whether any of
the engagement was undertaken specifically as part of the report preparation process.FuLLy APPLIED 24
29 G4-27
Report 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. Report the stakeholder groups that raised
each of the key topics and concerns.
FuLLy APPLIED 24
Report Profile
2 G4-28 Reporting period (such as fiscal or calendar year) for information provided. FuLLy APPLIED 5
3 G4-29 Date of most recent previous report (if any). FuLLy APPLIED 5
G4-30 Reporting cycle (such as annual, biennial). FuLLy APPLIED 5, 6
G4-31 Provide the contact point for questions regarding the report or its contents. FuLLy APPLIED 5
4, 6 G4-32 Report the "in accordance" option and GRI content index for chosen option. FuLLy APPLIED 5
G4-33Report policy and current practice with regard to seeking external assurance for the
report.FuLLy APPLIED 5
Governance
16 G4-34Report the governance structure of the organization, including committees of the
highest governance body. Identify any committees responsible for decision-making
on economic, environmental and social impactsFuLLy APPLIED 13
Ethics and Integrity
67 G4-56Describe the organization’s values, principles, standards and norms of behavior such
as codes of conduct and codes of ethics.FuLLy APPLIED 71
SPECIfIC STaNdaRd dISCLOSuRES
No.Index
GRI G4 Index
Location of the Disclosure (#page and /or web link)GRI G4 Indicator
Applicability indicated by MBI
External Assurance
ENVIRONMENTAL: Protecting water Resources
G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 30
34 G4-EN8 Total water withdrawal by source FuLLy APPLIED 31
G4-EN9 Water sources significantly affected by withdrawal of water FuLLy APPLIED 31, 32, 33, 34
35 G4-EN10 Percentage and total volume of water recycled and reused FuLLy APPLIED 31
ENVIRONMENTAL: Effluents and waste
36, 39 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 35, 36
37 G4-EN22 Total water discharge by quality and destination. FuLLy APPLIED 35
85
40 G4-EN23 Total weight of waste by type and disposal method FuLLy APPLIED 36
ENVIRONMENTAL: Energy
G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 38
43 G4-EN3 Energy consumption within the organization FuLLy APPLIED 40
44 G4-EN6 Reduction of energy consumption FuLLy APPLIED 40
ENVIRONMENTAL: Emission
G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 39
41 G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) FuLLy APPLIED 39
42 G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) FuLLy APPLIED 39
ENVIRONMENTAL: Material
45 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 42
46, 47 G4-EN2 Percentage of materials used that are recycled input materials FuLLy APPLIED 42, 43
SOCIAL: Labor Practices and Decent work
61 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 59, 72
76 G4-LA1Employment
Total number and rates of new employee hires and employee turnover by age group,
gender, and region.FuLLy APPLIED 72, 73
75, 77 G4-LA2Employment
Benefits provided to full-time employees that are not provided to temporary or part-
time employees, by significant locations of operationFuLLy APPLIED 73, 74
78 GA-LA4Labor/Management Relations
minimum notice periods regarding operational changes, including whether these are
specified in collective agreementsFuLLy APPLIED 74
62, 72 G4-LA5
Occupational Health and Safety
Percentage of total workforce represented in formal joint-management-worker health
and safety committees that help monitor and advice on OCCUPATIONAL health and
safety programs.
FuLLy APPLIED 59, 72
63 G4-LA6Occupational Health and Safety
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism,
and total number of work-related fatalities, by region and by gender.FuLLy APPLIED 59
73 G4-LA8Occupational Health and Safety
Health and safety topics covered in formal agreements with trade unions.FuLLy APPLIED 72
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80 G4-LA9Training and Education
Average hours of training per year per employee by gender, and by employment
category.FuLLy APPLIED 74, 75
81 G4- LA11Percentage of employees receiving regular performance and career development
reviews, by gender and by employee categoryFuLLy APPLIED 76
74 G4-LA12
Diversity and Equal Opportunity
Composition of governance bodies and breakdown of employees per employee
category according to gender, age group, minority group membership, and other
indicators of diversity
FuLLy APPLIED 72
SOCIAL: human Rights
G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 46
79 G4-HR4
Freedom of Association and Collective Bargaining
Operations and suppliers identified in which the right to exercise freedom of
association and collective bargaining may be violated or at significant risk, and
measures taken to support these rights
FuLLy APPLIED 74
48 G4-HR10Supplier Human Rights Assessment
Percentage of new suppliers that were screened using human rights criteriaFuLLy APPLIED 45
SOCIAL: Society
65 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 44, 65
64 G4-SO1Local Communities
Percentage of operations with implemented local community engagement, impact
assessments, and development programs.FuLLy APPLIED 65
69 G4-SO4Anti-corruption
ommunication and training on anti-corruption policies and procedures FuLLy APPLIED 71
55 G4-PR9Compliance
Monetary Value of Significant fines for non-compliance with laws and regulations
concerning the provision and use of products and servicesFuLLy APPLIED 11
G4-DMA b.
Supplier Assessment for Impacts on Society
Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impacts
FuLLy APPLIED 44
49 G4-SO9Supplier Assessment for Impacts on Society
Percentage of new suppliers that were screened using criteria for impacts on societyFuLLy APPLIED 45
SOCIAL: Product Responsibility
53, 54 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 49, 50
87
G4 – PR3
Product and Service Labeling
FuLLy APPLIED52
TYPE OF PRODUCT AND SERVICE INFORMATION REQUIRED BY THE
ORGANIZATION’S PROCEDURES FOR PRODUCT AND SERVICE INFORMATION
AND LABELING, AND PERCENTAGE OF SIGNIFICANT PRODUCT AND SERVICE
CATEGORIES SUBJECT TO SUCH INFORMATION REQUIREMENTS
a. Report whether the following product and service information is required by the
organization’s procedures for product and service information and labeling:
b. Report the percentage of significant product or service categories covered by and
assessed for compliance with such procedures.
49
G4 – PR6
Marketing Communications
FuLLy APPLIED31, 56, 58
SALE OF BANNED OR DISPUTED PRODUCTS
a. Report whether the organization sells products that are: Banned in certain markets;
The subject of stakeholder questions or public debate
b. Report how the organization has responded to questions or concerns regarding these
products.
26, 53, 54
55 G4 – PR9Compliance: MONETARY VALUE OF SIGNIFICANT FINES FOR NON-
COMPLIANCE WITH LAWS AND REGULATIONS CONCERNING THE
PROVISION AND USE OF PRODUCTS AND SERVICESFuLLy APPLIED 11
ECONOMIC: Procurement Practice
51 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and
responds to its actual and potential material economic, environmental and social
impactsFuLLy APPLIED 46
50 G4-EC9
Proportion of spending on local suppliers at significant locations of operation. - Report
the percentage of the procurement budget used for significant locations of operation
spent on suppliers local to that operation (such as percentage of products and services
purchased locally); b. Report the organization’s geographical definition of ‘local’; c.
Report the definition used for ‘significant locations of operation’.
FuLLy APPLIED 46
ECONOMIC: Economic Performance
15 G4-DMA b.Describe why the Aspect is material. As a minimum, this includes information on the
organization’s impacts, whether positive or negative, related to that Aspect.FuLLy APPLIED 11
G4-EC1 Direct economic value generated and distributed. FuLLy APPLIED 11
ECONOMIC: Indirect Economic Impacts
G4-DMA-a.
Describe work undertaken to understand indirect economic impacts at national,
regional, or local level.
Explain the significance of the indirect economic impacts in the context of external
benchmarks and stakeholder priorities, such as national and international standards,
protocols, and policy agendas.
FuLLy APPLIED 22
26 G4-EC8 Significant indirect economic impacts, including the extent of impacts FuLLy APPLIED 22
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HEad OffICE
Talavera Office Park 20th Floor
Jl. Let. Jend. TB Simatupang Kav. 22-26
Jakarta 12430, Indonesia
PO BOX 3264 JKT, Jakarta 10032
T 021-7592 4611
f 021-7592 4617
www.multibintang.co.id
BREWERIES
Jl. Daan Mogot Km 19,
Tangerang 15122, Indonesia
T 021-619 0108, 545 0750
f 021-619 0190
Jl. Raya Mojosari-Pacet Km. 50,
Sampang Agung, Kec. Kutorejo,
Kab. Mojokerto, Jawa Timur, Indonesia
T 0321- 592 505
f 0321- 592 508
NON-aLCOHOLIC BEvERaGES PLaNT
Jl. Raya Mojosari-Pacet Km 50,
Sampang Agung, Kec. Kutorejo,
Kab. Mojokerto, Jawa Timur, Indonesia
T 0321- 592 505
f 0321- 592 508
P T M U L T I B I N T A N G I N D O N E S I A T B K