sustainability report 2013 heineken ireland

Sustainability Report 2013Heineken irelandBrewing a Better Future

HEINEKEN Ireland Limited is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world. Based in Cork since 1856, sustainability is one of our core business priorities, and Brewing a Better Future is a key strategic focus.

We are A proud, independent, global brewer committed to surprising and exciting consumers everywhere.

We value A passion for quality, enjoyment of life, respect for people and our planet.

We want To be Ireland’s greenest and leading lager supplier with Heineken® and with a full brand portfolio.

Our Sustainability Report 2013

Welcome

Heineken®

ireland’s

no. 1lager brand

550employees

Managing Director Foreword

Heineken ireland 1sustainability report 2013

Since its foundation in 1856 HEINEKEN Ireland has continually transformed itself, evolving fromits historic origins to become an innovative modern breweryat the heart of the local and national economy. Brewing a Better Future is our plan to be a leading sustainable business. As our business evolves, so too does this programme. Our commitment to maintaining excellence in this area remains strong. We are making progress – not only against our 2015 goals, but also towards the ambitious targets we haveset for 2020.

In 2013 we focused our efforts on four key areas; Protecting water resources; Reducing CO2 emissions; Sourcing sustainably and Advocating responsible consumption. Our business has established ambitious objectives to be reached and I am delighted to report that HEINEKEN Ireland continues to achieve success in these business critical elements.

As a result in 2013 we maintained our excellent rate of water usage of 3.1 hectolitres of water used to every hectolitre of beer produced and we remain one of the most water efficient breweries in HEINEKEN worldwide. HEINEKEN Ireland takes water conservation seriously. Our Brewery Operations team are continually updating our water protection and conservation plans in this regard.

CO2 emissions decreased while our overall programme of CO2 emission reduction grew significantly with the introduction of targeted reductions in CO2 per hl of beer delivered throughout the island of Ireland. This significant development is enabled by new ways of working and is a testament to our commitment and our continued focus on being a truly responsible company.

Our sustainable sourcing programme continues to deliver strong results. We have over a thousand local suppliers generating an estimated spend of €100 million in the local economy.

It is encouraging to be able to say that all of our suppliers have signed up to the HEINEKEN Sustainable Supplier Code. Through this programme we are increasing our contribution to the building of a sustainable economy.

In addition, our steadfast commitment to Advocating Responsible Consumption continued in 2013. We are 100% committed to making moderate drinking aspirational. We have worked steadily with third party organisations in communicating this message over the past number of years and last year saw our first Heineken® advertising campaign designed to strengthen the positive image of responsible drinking.

All of these developments are designed to strengthen our position as responsible corporate citizens. Our brewery has been and will always be driven by the desire to create a successful and a sustainable business. We believe that now more than ever before the opportunities to help brew a Better Future are immense. It is our intention to rise to these ambitions through this programme and continue to strive tobe the greenest brewer in Ireland.

Maggie Timoney Managing Director HEINEKEN Ireland

For the global Sustainability Report 2013,including detailed performance data and moving images visit: sustainabilityreport.Heineken.com

The big picture

2 Heineken ireland sustainability report 2013

Our ways of working

Advocating responsible consumption

Our focus

Protecting waterresources

Our strategy

Our business priority Embed and integrate sustainability

Reducing CO2

emissions

Values andbehaviours

Sourcingsustainably

Sustainability is one of HEINEKEN’s six key business priorities. Brewing a Better Future focuses on four key areas where we can make the biggest difference. Each of these areas is highly relevant to our day-to-day business operations, and to our stakeholders. The focus areas are underpinned by our values and behaviours.

Brewing a Better Future is HEINEKEN Ireland’s long-term approach to creating shared, sustainable value: for our Company, our stakeholders and our society.

Brewing a Better Future


1 Baseline 20082 Baseline 20103 Baseline 2011

For more information about our Brewing a Better Future approach, see our global online report.

HEINEKEN Ireland’s local performance and achievements contribute directly to the HEINEKEN N.V. global commitmentsfor 2020.

Our global 2020 commitments

Protecting water resources• Reduce specific water consumption in the breweries by 25%1 to 3.7 hl/hl• Aim for significant water compensation/balancing by our production units

in water-scarce and distressed areas.

Reducing CO2 emissions • In production by 40%1

• Of our fridges by 50%2

• Of distribution by 20%3 in Europe and the Americas.

Sourcing sustainably • Aim for at least 50% of our main raw materials from sustainable sources • Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent• Ongoing compliance with our Supplier Code procedure.

Advocating responsible consumption• Make responsible consumption aspirational through Heineken®

• Every market in scope has and reports publicly on a measurable partnership aimed at addressing alcohol abuse

• Deliver global industry commitments.

The big picture


From barley to bar

Values and behaviours

Responsible consumption

Sourcing

CO2

Water

Focus areas

Ways of working

ConsumerCustomerDistributionPackagingBrewingMaltingAgriculture

Our approach to sustainability covers the entire value chain.

From barley to bar


Read our global online report for more information and related case studies.

AgricultureAt HEINEKEN Ireland our main raw materials are barley and hops. Local sourcing is a major priority for us with 100% of our pale malted barley coming from local suppliers. Sourcing crops locally creates shared value in several ways: as a company, we reduce transport costs; environmentally, we reduce the travel distance of crops with fewer imports; and the local economy is supported through our local sourcing policy.

MaltingAll of our barley is malted in locally based Irish malteries who have signed up to the HEINEKEN sustainable supplier code.

At HEINEKEN Ireland all of our malt requirements for 2013 were sourced locally, supporting in excess of 750 farm households and injecting over €4m into the agricultural economy.

Brewing beerThe brewing process consumes energy and water. Reducing energy and water consumption means increasing energy and water efficiency. This is achieved through careful monitoring and measurement. At HEINEKEN Ireland energy and water reduction is achieved by optimising the production processes. Our Cork based Brewery site has specific targets which are measured and managed by the entire team to drive down resource usage and increase efficiencies.

DistributionAfter the beer is packaged it is distributed to our warehouses and customers on a national basis by land. On an ongoing basis, we endeavour to measure and monitor transportation models and fuel efficiencies within our distribution stream.

Through our Green Distribution programme we have ambitious targets for CO2/km per hl of beer delivered and in this way we are taking bold steps to minimize our impact on the environment.Sustainability is included as a prerequisite in all tenders for transport and transportation contracts as part of our sustainable policy.

CustomersMost 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 HEINEKEN Ireland across all its brands, 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. In addition, we continue to develop greener draught equipment such as the David (XL) Green in recent years.

ConsumersAs Ireland’s leading lager brewery we actively take the lead in encouraging consumers of legal drinking age to enjoy our products responsibly. We have a clear set of standards and rules for responsible commercial communication, covering both offline and online. In the last two years we have pioneered the creation of advertising that makes responsible consumption aspirational for consumers. In 2013, we committed to invest 10% of our media spend on the Heineken® brand to support this campaign. The two campaigns – ‘Sunrise’ and the new ‘Dance More, Drink Slow’ are leading-edge examples of our commitment to this vital area.

We continuously work to engage our key stakeholders, commercial and retail partners who market, sell and serve our products to assist us in reaching people and increasing the effectiveness of the responsibility message.

The big picture


On track More to do Not started yet

What we said and what we’ve done

For full details of our global 2015 milestones and related progress, read our global online report.

Focus area

HEINEKEN Global Target 2015

Heineken GlobalAchievements 2013

Heineken ireland What we’ve done in 2013

Reduce specific water consumption in the breweries to 3.9 hl/hl.

Globally, water consumption decreased to 4.1 hl/hl.

Water consumption at HEINEKEN Ireland was maintained at 3.1 hl/hl. HEINEKEN Ireland is recognised as being one of the most water efficient breweries in HEINEKEN N.V..

Reduce CO2 emissions in production by 27% to 7.6 kg CO2 – eq/hl (baseline 2008)

CO2 emissions reduced from 8.4 kgCO2-eq/hl in 2012 to 7.7 kg CO2-eq/hl in 2013. This is a reduction of 26% compared with the baseline year 2008.

HEINEKEN Ireland specific direct and indirect CO2 emissions in production decreased slightly from 5.6 in 2012 to 5.5 CO2 eq/hl in 2013.

Reduce the CO2 emissions of our fridge’s by 42% (baseline 2010).

99% of the 116,000 fridges that HEINEKEN purchased in 2013 were ‘green’. The average reduction of CO2 emissions has improved from 38% to 40% in 2013, compared with the baseline year of 2010.

HEINEKEN Ireland contributed to the Green cooling achievements by ensuring 100% of fridges purchased in 2013 complied to the HEINEKEN green fridge policy. All new fridges are now based on green technology where legally and technically possible.

Reduce the CO2 emissions of distribution by 10% in Europe and the Americas (baseline 2010/2011).

Out of 23 operations in scope, 21 operations have now validated results. Fourteen performed better compared with the plan for 2013.

A reduction of CO2 emissions of Distribution by 5.1% against a baseline of 2011 was achieved through the implementation of the GreenDistribution program atHEINEKEN Ireland.


Focusarea

HEINEKEN GlobalTarget 2015

Heineken GlobalAchievements 2013

Heineken ireland What we’ve done in 2013

Four-step Supplier Code Procedure fully operational within all OperatingCompanies.

All majority-owned Operating Companies, excluding Asian Pacific Breweries, were in scope for the supplier Code Procedure, the speed of rollout depending on the maturity of the Operating Company.

At HEINEKEN Ireland 100% compliance has been achieved with regard toSupplier Code Compliancy | Supplier Risk Analysis Completion | High Risk Supplier Monitoring.

We commit to invest a minimum of 10% of our media spend for Heineken® in supporting our dedicated responsible consumption campaign in at least 50% of our market volume.

Developed ‘Dance More, Drink Slow’ campaign throughout the year, with official launch held in January 2014. Media Investmentcommitment included as part of 2014 budget.

HEINEKEN Ireland committed 10% of their media spend on Heineken® to responsible Consumption messaging in 2013. The ‘Sunrise’ campaign was launched digitally. Further media investment commitment of 10% was included in the 2014 budget plans.In addition, through HEINEKEN Ireland’s involvement with Drinkaware.ie, a number of high profile TV and print initiatives have been implemented to promote the responsible consumption of alcohol.

Every market in scope to have a partnership to address alcohol-related harm.All partnerships meet HEINEKEN’s 7-point partnership criteria.

Out of 40 markets in scope, 36 now have at least one partnership (33 in 2012).

HEINEKEN Ireland has a Partnership in Place with the Simon Community – The Pilot Alcohol Addiction Aftercare project – this service is part of the rehabilitation process accessible to Simon service users.

Our focus areas


Balancing the needs of the community with our needs is at the heart of our approach to water usage.

Why this is important We use water in our finished product – beer is 95% water – and throughout our supply chain, including in the maintenance and growth of crops. We understand thecritical importance of sustainable use and protection ofwater to safeguard this precious resource.

With global demand for water expected to increase by 40% by 2030 efficient water usage is essential. Water conservation is a key strategic focus for the Brewery Operations team at HEINEKEN Ireland. The result is that HEINEKEN Ireland remains one of the most water efficient breweries in HEINEKEN worldwide.

In HEINEKEN Ireland we use 3.1 liters of water to produce 1 liter of beer. This is 20% less than the global HEINEKEN 2015 target.

We are and remain committed to using even less water and we continue to explore ways to make further reductions in this regard.

Protecting water resources

“We continue to strive to do more and use natural resources as efficiently as possible, while maintaining the quality of our products”pJ TierneyBrewery Manager


Our global priorities• Reduce the amount of water used in production• Protect our water resources in water-scarce and water-

distressed areas• Compensate for the water that is not returned to the local

water cycle: ‘water balancing’

Actions and results At HEINEKEN Ireland it currently takes 3.1 hectolitres (hl) of water to produce 1 hl of beer. Within the Global HEINEKEN Group we are among the leaders in water efficiency currently using 20% less than the global target for 2015 of 3.9 hl/hl beer. We continue to maintain our leadership position and strive to make further savings in water usage.

specific water consumptionhl/hl beer + soft drink + cider + water

Protecting Water ResourcesIn 2012, water metering was installed across the Brewery Site which allowed for the close study of water usage at every step of the brewing process throughout 2013.

This provided the team with a comprehensive understanding of where and when water was used. Every opportunity for saving was identified and evaluated and improvements made resulting in water usage savings. In this way we contribute positively to the protection of water resources. All water leaving our site is pre-treated before being returned to the primary source.

Water BalancingIn water-scarce and water distressed areas HEINEKEN Global works to redress the water balance by financing and supporting local projects. This includes the launch with several partners of a water balancing project in the Ethiopian region of Harar and joining together with a multi-stakeholder consortium in Mexico to establish the Monterrey Metropolitan Water Fund.

At HEINEKEN Ireland, through relentless attention to efficiencies at every stage of the brewing and production process we continue to make as valuable a contribution as possible to the conservation of this precious resource.

In 2013 the HEINEKEN Ireland brewery joined the top performing Breweries in the HEINEKEN global network to achieve the coveted Bronze Award certification. This award of excellence is only conferred on those operations that conform to the higest level of excellence in brewery operations under the umbrella of TPM (Total Productive Management). TPM is a process whereby the brewery engages in a continuous and consistent quest to eliminate losses, including water and energy, in all processes through active participation of all employees.

3.1hlwater

20133.2hlwater

2009

5% reducTionon averagesince 2009

3.2

3.3 3.3

3.1 3.1

2009 2010 2011 2012 2013

Why this is importantAs part of a leading global company, HEINEKEN Ireland believes it is our responsibility to play an active role in the reduction of CO2 emissions across the value chain, from barley to bar.

An extensive and comprehensive carbon footprint model has been developed by HEINEKEN N.V.. HEINEKEN Ireland completed the CO2 emission measurement process in 2011. This allowed analysis and greater understanding of hotspots which in turn facilitated better focus on areas where improvements can have the greatest effect.

A key focus for HEINEKEN Ireland in reducing its CO2 emissions is within the cooling segment of its operations. Allequipment purchases are now based on green technology as part of our efforts to reduce our CO2 footprint in this area.

We are working with suppliers to reduce emissions in the design and production of our packaging, and with customers to focus on recycling and reusing the products they consume

Our focus areas


TOTAL WASTE RECYCLING RATE99.8%

We continue to work to decrease our CO2 Emissions through focusing on reducing the total carbon footprint of our products across the value chain.

Reducing CO2 emissions

The graph shows the breakdown of HEINEKEN Ireland’s carbon footprint over the main processes from barley to bar. The weighted average HEINEKEN Ireland Ltd. carbon footprint is approx. 58.8 kg CO2eq/hl.

Such an analysis provides us with a platform from where we can identify and focus our efforts in reducing our carbon footprint.

carbon footprint Heineken From barley to bar

Agriculture Malting and adjuncts Beverage production

Packaging material production Distribution Cooling

-40%-40%

average energy saving WiTH our Fridges

Our global priorities• 40% lower emissions in production by increasing energy

efficiency and making renewable energy sources like solar and wind power part of the energy mix

• 50% lower emission of our fridges, by working with suppliers to develop best-in-class draught equipment technology and making sure that all our fridges comply to our global fridge policy

• 20% lower emissions of distribution in Europe and the Americas, by reducing kilometres driven, improving fuel efficiency, and switching to other modes of transport

Actions and results ProductionEnergy conservation has always been a strategic focus of our brewery. As a result of our efforts we continue to reduce our energy consumption year on year.

Much of our energy reduction has been achieved through investment in new equipment, together with regular inspection and upgrade of the existing plant and equipment. Our investment in sub metering programmes has also allowed us to focus on energy consumption hotspots associated within the brewing processes.

specific greenhouse gas emissions kg CO2-eq/hl beer + soft drink + cider + water


PackagingAt HEINEKEN Ireland we are continuously reviewing methods to improve and reduce the weight of our packaging. Recent innovations and changes in the weighting of our package products has resulted in significant C02 reductions within our distribution process.

DistributionIn 2013, as part of our Green Distribution programme, HEINEKEN Ireland established a distribution CO2 emission baseline for every hl. traded. This provided us with an opportunity to look at carbon emission hotspots in our distribution chain with focus on fuel consumption and mode of transport. Heineken Ireland achieved a reduction of 5% in 2013 against the baseline and efforts are on-going in achieving further reductions as part of our sustainable distribution policy.

CoolingCooling is essential to the consumer’s experience of ourbeer, but is also a significant contributor to our totalcarbon footprint. To reduce this, we have committed to installing only eco-friendly fridges.

In 2013, 100% of our new fridges complied with the HEINEKEN Green Fridge Policy. A ‘green’ fridge has three characteristics: the use of hydrocarbon refrigerant, LED illumination and an energy management system, wherever legally and technically possible.

Each year the specifications are adjusted towards better performance. In addition the redesign of the Heineken Extra Cold frozen column resulted in a 40% increase in energy efficiency.

In 2013 HEINEKEN Ireland reduced its kgC02/hl traded significantly through a series of driver training programs, route planning and improved reporting. This was assisted by using automated truck management systems allowing improved data capture. It also helped to reduce fuel costs, worked to reduce mileage and limit damaging wear and tear.

6.6 6.7

6.35.6 5.5

2009 2010 2011 2012 2013

Our focus areas


HEINEKEN wants to operatein a way that improves the quality of life for local individuals and communities, helps the environment and ensures a consistent supply of our raw materials.

Why this is important Through our local sourcing initiatives we have a long history of contributing to the communities in which we operate. As global demand for food continues to grow, responsible agriculture and sourcing have never been more important.

We continue to have a strategic focus to support local suppliers and distributors. In addition to benefitting local communities, local sourcing also benefits HEINEKEN as it eliminates import duties, secures a sustainable supply ofraw materials and reduces our transport related environmental footprint.

Our suppliers are key to helping us achieve our sourcing commitments. We continue to work together with them to ensure we implement the right practises throughout our value chain, as we ask them to respect and abide by the principles expressed in our Supplier Code.

pablo pomaresFinance Director

“ The long term success of our Company lies hand in hand with the success of our partners. Sourcing locally with sustainable solutions benefits us all”

Sourcing sustainably

irish Farms supplying raw materials

750+

Local SourcingOur local sourcing initiatives play a key role in economically and socially empowering communities. Creating a viable and a reliable local supply chain is essential to the sustainability of all businesses.

Working with nearly 1,000 local suppliers with an estimated spend by HEINEKEN in the local economy of €100m target is testament to that focus.

Supplier Code GovernanceWe are committed to making a positive contribution to society through our global & local operations. Our suppliers are key to achieving our sourcing commitments as much of our impact indirectly lies with them. We expect all our suppliers to help us to fulfil this commitment by actively supporting and respecting our values in their own business practice. By signing the Supplier Code, suppliers agree to comply with key elements of integrity, environment and human rights. At the end of 2013, 99% of our local suppliers had signed the Supplier Code.

All of HEINEKEN Ireland suppliers, who have signed up to the supplier code, agree to certain standards of sustainability in their business operations. We use the services of EcoVadis, a dedicated Sustainabilty consultancy, in order to help our suppliers develop and adhere to these standards, and to identify gaps in their performance that need to be addressed.


For one of our key suppliers of promotional merchandise, the process of compliance to the HEINEKEN Supplier code helped them to move forward with the development of their own Corporate Social Responsibility agenda in a systematic way.

The company, which is already a member of SEDEX and provides a complete ethical tracking system, is one of approximately 1,000 Irish based suppliers to have signed up to the HEINEKEN supplier code in 2013.

Our global priorities • 50% of our main raw materials to be supplied from

sustainable sources, based on the principles and practices of the Sustainable Agriculture Initiative Platform

• 60% of agricultural raw materials in Africa to be locally sourced within the continent, crating shared value for both smallholder farmers and HEINEKEN

• On-going compliance with our Supplier Code procedure

Actions and resultsSustainable Sourcing of Agricultural MaterialsSince the launch of the Brewing a Better Future programme, Sustainable Sourcing has always been central to HEINEKEN Ireland’s operations.

A strategic focus remains in our company to support local suppliers and farmers which in turn generates employment and has a positive economic impact on local communities.In 2013 all our malt requirements were sourced locally supporting in excess of 750 farm households and injecting over €4m into the local agricultural economy. All our barley is malted in locally based Irish malteries who have signed up to the HEINEKEN sustainable supplier code.

Supplier Code signed by

1,000+suppliers

Our focus areas


As Ireland’s no. 1 Lager Brand we actively promote the enjoyment of beer in moderation. We also realise that alcohol abuse is a complex societal issue without simple solutions.

Why this is important Despite the vast majority of people enjoying our products responsibly there are still too many people who don’t. There are clear health and behavioural risks associated with consuming too much alcohol, either over time or on single occasions.

HEINEKEN has a long history of encouraging responsible consumption and we take our role seriously to help reduce the incidence and impact of harmful drinking. For us the goal is to make moderate, responsible consumption aspirational. We know that when brands communicate directly, the message resonates strongly with consumers.

Along with HEINEKEN, governments, NGOs, consumer groups, police forces, legislators, retailers, hotel, bar and restaurant owners and community groups all have a valuable role to play in encouraging responsible consumption.

Advocating responsible consumption

Heineken ireland HaS a dediCated reSponSible ConSumption webSite

“ We believe we can be more effective in making positive behaviour aspirational by utilising our creativity”sharon Walsh, Marketing Director

Heineken ireland HaS a relevant partnerSHip witH tHe Simon Community foCuSed on reduCing alCoHol-related Harm


In 2013 Heineken Ireland promoted the ‘Sunrise Belongs to Moderate Drinkers’ campaign with a simple message, stay in control and you can enjoy your night more.

For this and other case studies relating to responsible consumption, see the online HEINEKEN N.V. report.

Our global priorities • Make responsible consumption aspirational through the

Heineken® bringing the message directly to our consumers around the world.

• Build measurable partnerships in every market in scope, working closely together with local governments, NGOs and specialists to encourage responsible consumption and address alcohol-related harm

• Taking action at industry level, in collaboration with 12 global alcohol businesses, in five key areas: under-age drinking, marketing codes of practice, consumer information and product innovation, drink driving and retailer support

Actions and results Making responsible consumption aspirational throughthe Heineken® brandIn 2013 we continued to spread the message that ‘Sunrise belongs to moderate drinkers’, our Heineken® responsible consumption campaign which aims to change habits by advocating positive behaviour.

This inspiring and creative campaign is aimed at getting the Heineken message out to consumers that moderation is aspirational.

In this regard we continue to utilise such platforms as our dedicated website www.enjoyheinekenresponsibly.com, responsible consumption hoardings at major sponsorships and our EHR logo, which has become synonymous with the Heineken® brand, the number 1 lager brand in Ireland.

Working in partnership with NGO’s and third partiesOur partnership with Simon, an organisation whose mission is to work with the homelessness in our society, allows us the opportunity to help those who have been most affected by alcohol abuse.

The pilot Alcohol Addition aftercare program currently being run by Simon and supported by Heineken is the only programme of its kind available to people experiencing hopelessness in Cork.

In essence the program provides a step down facility and framework for those involved, to participate in structured training and employment courses as part of their rehabilitation and integration back into society.

Taking action at the industry level In 2013 we continued to work with other industry leaders in combating alcohol related harm. Our ongoing support for the consumer focused drink aware program is testament to our efforts aimed at changing and challenging the culture of excessive drinking in our marketplace.

In conjunction with MEAS, ABFI and IBA, Heineken plays a lead part in the promotion if the responsible consumption of alcohol in the marketplace together with ensuring the existence of a balanced stakeholder debate on issues affecting our industry.

Our Employees as ambassadorsOur ambassadorial programme ‘We Love Beer ‘encourages our employees to be knowledgeable about our products and about using then in moderation. In Heineken Ireland we continue to train our people to be such ambassadors.

Our ways of working


Brewing a Better Future is integral to our way of working. Health, safety and employees’ and human rights have long been embedded in our culture and processes. Through our Code of Business Conduct we are committed to conducting business with fairness, integrity and respect for the law and our values. We also have a long history of contributing to the communities in which we operate.

Health and SafetyAt HEINEKEN Ireland safety is a high priority amongst our senior and general managers. In 2013 a global safety strategy was launched to ensure that health and safety is systematically addressed at all levels across the whole of the business. The safety motto at HEINEKEN Ireland is think safe, work safe, home safe.

A consistent policy of education and awareness is pursued by the Health and Safety team and 2013 saw the total number of accidents of company personnel decrease significantly with a further decrease in accident severity and resulting lost days.

Our values represent what we stand for as a corporate citizen, a business partner and an employer. How we behave and how we work together is key to our success.

Values and Behaviours

500 dayS foCuSed HealtH & Safety training Completed by Heineken employeeS in 2013

35,000jobS are linked toour Company

accident frequencyCases/100 FTE, HEINEKEN company wide

2011 3.3

2012 1.0

2013 1.0


For this and other global case studies relating to our values and behaviours, see our global online report.

In 2013 emotional, financial and physical wellbeing was celebrated at HEINEKEN Ireland through a series of workshops, information booths, demonstrations and expert 1:1s at the employee health & Wellbeing Fair. The Fair was an opportunity for employees to explore options for taking charge of their personal wellbeing both in and outside of the workplace.

Developing our PeopleOne of HEINEKEN Ireland’s business priorities is to ‘Drive personal leadership’. In 2013 the new HEINEKEN Leadership competencies were introduced to the management teams in HEINEKEN Ireland. These competencies are integrated into the way we manage performance, develop our leaders, assess future leaders, recruit for roles and review our level of employee engagement.

2,000 HourS of employee time

was dedicated to volunteering

investing in our communitiesHEINEKEN Ireland places great emphasis on its corporate citizenship and demonstrates this through social investment, commitment to volunteer programs and other community donations of both resources and financial support.

Through our HEINEKEN Cares Fund we support a wide range of charities. In addition to this we support the SimonCommunities, an organisation dedicated to combatinghomelessness, nationwide. Simon is also our community partner within our BaBF programme.

We encourage all employees to become actively involved in their communities and in 2013, our employees dedicated 2,000 hours of their time to local Simon Communityproject work.

Significant contributions are also made to local tourism through profile building, support to local public houses, festival and sport sponsorship, many of which are conducted in local communities throughout Ireland.

The bigger picture


Global governanceOur governance model for Brewing a Better Future covers both global and local levels. In 2013, we updated our model at the global level. A Corporate Affairs Committee (CAC) was formed to oversee a range of corporate areas, including sustainability. The CAC is chaired by our CEO and supported by other executive members. The Committee is responsible for delivering our plans and establishing clear functional ownership and alignment across the business.

At HEINEKEN Ireland we have a three year plan and a local sustainability committee responsible for its execution. Having this structure in place is fundamental to achieving local success with regards meeting our sustainability targets.

Building sustainability into performance plansSustainability remains an ongoing part of the performance plans of HEINEKEN’s senior management. It is one of the five merit areas for senior managers in their Annual Performance Appraisal.

In 2013 all senior managers at HEINEKEN Ireland had an objective based on sustainability. The basis for the objective setting is the four focus areas and the values and behaviours, which have in turn been created as objectives for each Operating Company and function.

Measuring progress Brewing a Better Future is one of the six Company strategic priorities. It therefore forms part of the Company Scorecard used for measuring progress on each of these priorities.

This is done via a dedicated measurement system called ‘Green Gauge’. The system measures progress on each commitment allowing us to assess progress and identify challenges and solutions. HEINEKEN Ireland finished the 2013 sustainability reporting year with full compliance recorded against all objectives.

Local sustainability reportingAs part of our commitment to transparency in reporting, in 2013 a total of 39 Operating Companies published a local sustainability report or fact sheet. HEINEKEN Ireland has published a local Sustainability Report annually since the program began and is pleased to share our sustainability performance report with all of our stakeholders. All reports can be viewed on the global company website.

Brewing a Better Future will only succeed if the preconditions for success are defined and in place. A clear governance model and a system that measures progress are essential.

Embedding sustainability

39 operating CompanieS publiSHed a loCal SuStainability report


For a full list of partnerships and our UN Global Compact commitments, read our global online report.

Stakeholder groups with which HEINEKEN NV engaged at a global level in 2013

Governments

Industryassociations

Suppliers

NGOs & internationalorganisations

Consumers

Employees

Employeerepresentatives

Investors

Stakeholderengagement

Working with partnersHEINEKEN Global continued active involvement in more than 20 organisations that support our sustainability aims for both business and society. We are an industry partner with the World Economic Forum, a founding member of Green Freight Europe, the first beer company that joined the Sustainable Agriculture Initiative Platform and active participant of the Beverage Industry Environmental Roundtable.

engaging with stakeholdersIn 2013, we completed our largest reputation research cycle ever, talking to more than 7,000 stakeholders across 31 markets.

HEINEKEN Ireland participates in the HEINEKEN Global Reputation Research on an annual basis.

Feedback shows that, overall we are seen as a trusted and respected company. However , it also identities areas where increased focus is required. In this way we can identify areas for improvement by listening carefully to our stakeholders and work to improve our reputation score year on year.

A second series of expert meetings was also initiated by HEINEKEN Global during which a broad group of stakeholders including scientists, NGOs, suppliers and industry peers met with our internal team to share knowledge and insights on our sustainability performance and where we can improve in key areas.

In 2013 all Executive Committee members at HEINEKEN Global level met with external stakeholders including the World Trade Organisation, World Economic Forum, Dutch Sustainable Growth Coalition and ministers and membersof national and European parliaments.

Feedback from these meetings shows that HEINEKEN continues to have a positive overall reputation, and a high level of trust by the majority of our stakeholders. However, it also identifies areas for improvement. Read the online report for more on what our stakeholders said and how we responded.

Crucial to our Brewing a Better Future journey are our stakeholders. They help us to stay focused and tell us when they feel we are moving off-track.

Stakeholder dialogue

7,000StakeHolderS aCroSS 31 global marketS took part in our reputation reSearCH

Other information


Global benchmarks Dow Jones Sustainability Index HEINEKEN N.V. received our highest ever score in 2013. We qualified for inclusion in the 2014 Sustainability Yearbook and received the RobecoSAM Bronze Class award, which means our score is within the range of 5% to 10% of the Industry Leader.

FTSE4GoodFor the 10th consecutive year, HEINEKEN N.V. maintained their inclusion in the Index. For the Environmental, Social and Governance (ESG) rating, HEINEKEN achieved an absolute score of 4.1 out of 5, and a relative supersector score of 93 out of 100.

Investors Carbon Disclosure ProjectHEINEKEN N.V. again participated in the Investors Carbon Disclosure Project (CDP) to measure and disclose our carbon-reduction activities. Our disclosure score improved to 96 points out of 100 (from 88 in 2012 and 59 in 2011). We maintained our B performance rating. Overall, this resulted in a ranking in the CDP Benelux Leadership Index. We lead the Consumer Staples category.

CDP Water DisclosureHEINEKEN N.V. took part for the third time in the CDP Water Disclosure Global Survey, reporting on water usage, water-related risks and responses to these risks. More than 1,000 companies from around the world have been asked to report vital water-related information to CDP this year, with close to 60% responding. No rankings have yet been provided.

TPM - Bronze Award CertificationIn 2013 the HEINEKEN Ireland brewery achieved Bronze Award certification, currently the highest award of excellence that can be achieved by any brewery in the network under the umbrella of TPM, Total Productive Management. TPM is a process whereby the brewery engages in a continuous and consistent quest to eliminate losses, including water and energy, in all processes through active participation of all employees. Our focus and success in delivering this process impacts directly and positively on local targets for energy and water usage and C02 emission reduction as part of our Brewing a Better Future programme.

We at HEINEKEN Ireland are part of HEINEKEN N.V. and we work together as a team to achieve our sustainability goals. Together we are moving closer to the targetswe set for 2020 in each of the four focus areas.

Benchmarks and achievements


Let us know your thoughtsWhich aspects of Brewing a Better Future are working well?

Where do you think we could do better?

We’d love to hear from you, because your feedback will allow us to learn and improve.

Declan FarmerCorporate Relations Manager

Email:[email protected]

Post:HEINEKEN IrelandMurphy BrewryLeitrim StreetCork,Ireland

For more information about HEINEKENand our sustainability journey visit:

www.sustainabilityreport.HEINEKEN.com

www.theHEINEKENcompany.comwww.enjoyHEINEKENresponsible.comwww.heineken.com

Twitter:@HEINEKEN Corp

A HEINEKEN Ireland publication

Heineken IrelandMurphy BreweryLeitrim StreetCorkIreland

telephone +353 21 4503371

fax + 353 21 4503011

sustainability report 2013 heineken ireland

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