sustainability report 2015 - the heineken company...this report summarizes heineken hungary’s...

Sustainability Report 2015Brewing a Better World

HEINEKEN Hungária

PROM

OTING HEALTH AND SAFETY

Brewing a Better world

32 Heineken Hungária Sustainability Report 2015Heineken Hungária Sustainability Report 2015

introduction introductionThe big picture The big pictureFocus areas Focus areasValues and behaviours Values and behaviours

This report summarizes HEINEKEN Hungary’s progress on Brewing a Better World in 2015. We continue to focus on the topics that are the most relevant for our stakeholders including consumers, employees, suppliers, decision makers and the community that we operate in. This year, in response to our stakeholders’ feedback, we are taking the first steps towards an Integrated Reporting <IR> approach, communicating the value we create from the resources we use. This means that HEINEKEN gives a detailed report of its environmental and social performance as well, besides financial results highlighting the interdependence of the financial and non-financial goals of our company. We produce our report in accordance with version 4.0 of the Global Reporting Initiative Guidelines (GRI4).

We invited Kevin ‘Blaxtar’ de Randamie to transform this Sustainability Report into his own artistic expression. Click here to see the result.

www.youtube.com Sustainability Report 2015: ‘Let’s Get Frank’

Managing Director’s foreword

2015 was a year of jubilees for HEINEKEN Hungary: in Sopron we celebrated the 120th anniversary of our brewery, in Martfű the 30th. These anniversaries provided a good opportunity for us to look back on our past, point out what we achieved of and laid the ground for yet another century of successful operation in the future.

The owners of the First Sopron Brewery established in 1895 would be quite proud today to see what their company has achieved: the flagship beer of the brewery, Soproni has become the most preferred beer brand of the country, the very first socially responsible beer brand in Hungary, yet brewed of 100% Hungarian barley. The brewery, that has become a reference brewery for Heineken globally, due to its favourable geographical position, produces and exports Heineken to many European countries including Germany and Austria. The fact that the name of Sopron figures on every bottle and can of Soproni, reminds of the history of the last 120 years, that we lived and formed together with the city of Sopron, the history, that is full of success, emotions, traditions and passion, that we can all be proud of. The Martfű brewery stands out from other breweries of the region by its

outstanding green and sustainable operation. Thanks to our investments into innovation focusing on new technologies and renewable energies, CO2 emission of the Martfű brewery has decreased significantly in the last few years and work safety measures and performance has become a point of differentiation within the HEINEKEN word globally.

We celebrated the anniversaries in both towns together with our key stakeholders (leaders and decision makers of the city, authorities, NGOs, Horeca and retail outlet owners), to demonstrate how important our mutual and long-term partnership was for the economy and communities around us. Our operation in Sopron and Martfű is tangible, thanks to the amount of local taxes we pay, the number of people we employ and to the local civil causes and initiatives we support every year. HEINEKEN is an international company with a global footprint, however with a local mind-set. It is crucial for us to be an integral part of the communities where we operate, and strengthen each other in every sense: economically, socially, emotionally, all this with the highest respect of the environment. That is social responsibility for HEINEKEN Hungary.

I myself am especially proud of this. I think, this is what really shows how successful we are. Having a positive impact on our communities and on the country shows me that we are on the right track to operate sustainably. We provide jobs to people in our company and indirectly atfor our suppliers, who work wholeheartedly to make the brewery of their hometown competitive on the regional level, so that it can provide jobs for local people for many more decades on. Therefore, it is the trust that our employees and our communities invest in us which makes our operation sustainable for the long run.

In this year’s Sustainability Report we give an overview of how our business results are related to our social responsibility programme and what we have accomplished from the commitments we took in our Brewing a better world agenda for 2014-2020.

This is not just for sharing information. We are interested in our stakeholders’ feedback, so next time we meet please share yours with us!

Cheers!

José Matthijsse Managing Director HEINEKEN Hungary Breweries Co.

Our Sustainability Report

“It is the trust that our employees and our communities invest in us which makes our operation sustainable for the long run.”

Our six business priorities:

1. Win in premium led by Heineken®

2. Shape the cider category

3. Lead by cool marketing & innovation

4. Be commercially assertive

5. Drive end2end productivity

6. Brewing a Better World

Sustainability at HEINEKEN is a business imperative and one of our six key business priorities. Our Brewing a Better World approach is focusing on 6 areas and is designed to create genuine economic opportunities for both our business and our stakeholders. Our approach to sustainability covers the entire value chain ‘From Barley to Bar’ and it is underpinned by our values and behaviours.

Brewing a Better World

ADVOCATING RESPONSIBLE CONSUMPTION

SOURCING

SUST

AIN

ABLY

REDUCING CO2 EM

ISSION

S

GRO

WIN

G W

ITH

COM

MUNIT

IES

PROTECTING WATER RESOURCES

Introduction IntroductionThe big picture The big picture


Focus areas Focus areasValues and behaviours Values and behaviours

Focus areas 2015 global milestone

2015 global result

2015 HEINEKEN Hungary result

Indicator 2020 global commitment

Reduce specific water consumption in our breweries to 3.9 hl/hl1.

Achieved Water consumption decreased to 3.7 hl/hl (-26% compared to 2008).

Achieved Our specific water consumption was 3,8 hl/hl in 2015, a decrease of 26 percent compared to 2008.

In 2014 we raised our ambition for 2020 to 3.5 hl/hl1 overall, and 3.3 hl/hl on average for breweries in water-scarce and water-distressed area.

100% of our production units in water-scarce and water-distressed areas will have a Source Water Protection Plan.

Partly achieved Twenty of 23 production units in scope have a Source Water Protection Plan (representing 99% of total production volume of units in scope).

HEINEKEN Hungary is not in scope.

n/a Aim for significant water compensation/ balancing by our production units in water-scarce and water-distressed areas.

Reduce CO2 emissions in production by 27%1 (resulting in 7.6 kg CO2-eq/hl).

Achieved 36% reduction compared with 2008, resulting in 6.7 kg CO2-eq/hl in 2015.

Achieved Specific CO2 emissions by HEINEKEN Hungary was 5,8 kg CO2-eq/hl in 2015. CO2 emissions reduced by 32% since 2008.

Reduce CO2 emissions in production by 40%1.

Reduce the CO2 emissions from distribution by 10%2 in Europe and the Americas.

Not achieved Our overall emissions increased by 1.7%. Main cause is the production footprint challenge we face in Mexico, our biggest market. When we focus on Europe only, we actually decreased emissions by 9.8%.

Partly achievedCO2 emissions from distribution decreased by 3.1% compared to the baseline 2010/2011.

Reduce the CO2 emissions from distribution by 20%2 in Europe and the Americas.

Reduce the CO2 emissions of our fridges by 42%3.

Achieved 100% of the more than 115,000 fridges that HEINEKEN purchased in 2015 were ‘green’. The CO2 emissions of these fridges are 45% lower compared with the fridges from baseline year 2010.

Achieved 100% of all 888 fridges purchased by HEINEKEN Hungary in 2015 were ‘green’. The CO2 emissions of these fridges are 45% lower compared with the fridges from baseline year 2010.

Reduce the CO2 emissions of our fridges by 50%3.

What we said and what we’ve done

Focus areas 2015 global milestone

2015 global result

2015 HEINEKEN Hungary result

Indicator 2020 global commitment

50% of agricultural raw materials used in Africa to be locally sourced within the continent.

Partly achieved We increased our local sourcing from 48% in 2014 to an estimated 49% in 2015.

Achieved86% of the volume of the two most important raw materials (barley and corn) came from Hungarian agriculture in 2015.

Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent.

Four-step Supplier Code Procedure operational within all operating companies.

Partly achieved Four-step Supplier Code Procedure operational in 46 out of 50 operating companies in scope (representing 99% of sales volume in scope).

Achieved All partners of HEINEKEN Hungary have signed the Supplier Code. We had all of our suppliers audited by an independent international auditor SGS between 2012 and 2015.

Ongoing compliance with our Supplier Code Procedure.

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.

Partly achieved 9.7% of total media spend in our main markets, representing 51% of the Heineken® global volume.

HEINEKEN Hungary is not among those subsidiaries affected by this target, however the “Enjoy responsibly” logo was displayed on all of our communication materials. The website run by HEINEKEN Hungary www.holahatár.hu was visited more than 12 000 times in 2015.

n/a Make responsible consumption aspirational through Heineken®.

Every market in scope has a partnership to address alcohol-related harm.

Achieved Fifty operating companies, across 48 markets, have a partnership in place to address alcohol-related harm.

We have raised awareness of responsible consumption in cooperation with our partners by launching an innovative communications and awareness raising campaign of the mobile application Sofőrhívó (Call-a-Driver). More than 50.000 facebook users were reached by the message, the campaign film was watched online by 7800 people.

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.

Partly achieved 56% have met all our partnership criteria representing 72% of the beer volume in scope.

Contribute to the five industry commitments and related KPI’s, as defined through the International Alliance for Responsible Drinking (IARD).

On track September 2015, the signatory companies published a second Commitments Progress Report outlining our actions to date.

HEINEKEN Hungary is not among those subsidiaries affected by this target.

n/a n/a

Achieved On track Partly achieved Not achieved

1 Baseline 20082 Baseline 2010/20113 Baseline 2010

From Barley to Bar

Introduction IntroductionThe big picture The big picture


Focus areas Focus areasValues and behaviours Values and behaviours

We pursue an increasingly holistic approach to sustainability. Our strategy focuses on the entire value chain ‘From Barley to Bar’. This value chain includes many forms of capital, from the vital natural resources needed to make our products, through to financial capital from the sale of our products. We continuously consider the sustainability of each step with respect to our key focus areas.

We work with farmers worldwide to sustainably grow raw materials, like barley and hops, needed to brew our beers. In addition, we use bittersweet apples for cider making. Local sourcing is a priority because of the shared value it creates for the local communities, the country and for HEINEKEN. HEINEKEN Hungary purchased 86% of the volume of the two most important raw materials (barley and corn) in Hungary in 2015.

HEINEKEN N.V. employs more than 81,000 people, more than 500 in Hungary. They enjoy the benefits and rewards – pay, training, healthcare, career opportunities – their hard work deserves. The guaranteed minimal wages HEINEKEN Hungary pays is much higher than the one prescribed by the law in Hungary. The annual employee Climate Survey tracks our colleagues’ engagement level and helps us defining actions, required on dimensions that fall short.

Brewing beer and making cider is a craft. HEINEKEN N.V. owns 11 malteries and operates 156 breweries and cider plants across the world. Work safety is a priority for us. We are committed to improving energy and water efficiency and switching to more environmentally friendly energy sources where feasible.

The majority of our beer and cider is served in bottles, cans and kegs. We are constantly looking to innovate, finding ways to optimise the production of our packaging

The movement of our products around the globe is carefully managed. Health and safety policies are in place to reduce the incidence of accidents. We optimise the distribution by changing the form of transport, training drivers on road safety. HEINEKEN Hungary developed its distribution system with an investment of nearly 1,6 million euros in 2015. The investment aimed at the improvement of efficiency and work safety.

Millions of retailers, bars, restaurants and clubs serve a selection of our brands. New fridges purchased by HEINEKEN N.V. meet green standards and we continue to develop greener draught brewing equipment. We work in partnership to ensure our products are only sold to consumers of legal drinking age. In Hungary we launch a consumer campaign each year to raise awareness of responsible drinking. In 2015, almost 350 million cans and bottles bore the logo of “Enjoy responsibly” in Hungary.

Growing with communities underlines our ambition to have a positive impact in the communities where we operate. In 2015, we continued the Soproni Good Deed Program in Hungary, which through a 101 million forint donation delivered the message directly to almost 5000 people that there is a way out from unemployment. Besides nationwide programs we also supported the local communities. We donated the revenue of our beer festivals in Sopron and Martfű to local NGOs. However, 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 development.

Agriculture

Brewing

Employees

Packaging

Distribution

Customers Community

materials. In 2015, HEINEKEN Hungary invested 1.8 million euros into the enlargement of its production line increasing and optimising packaging capacities.

Focus areas Focus areasValues and behaviours Values and behavioursIntroduction Introduction


The big picture The big picture

Protecting water resourcesActions and results

HEINEKEN global commitments for 2020:

Reduce specific water consumption in the breweries by 30%

Protect our water resources in water-scarce and water-distressed areas

Aim for significant water balancing in these areas

Beer contains almost 95% water. We are aware that our operation has an impact on the water resources, consuming and using natural water supplies. Therefore, we are committed to reducing our water consumption on one hand, and returning water to the environment through effective water treatment on the other. Eventually, we want to return as much water to nature as we have withdrawn from it.

HEINEKEN N.V. has achieved 2015 commitment (3,9 hl/hl specific water consumption) by reducing specific water consumption to 3.7 hl/hl globally, a decrease of 26 percent compared to 2008. It is also a great achievement for HEINEKEN N.V. that more than 56% of the total production volume in 2015 is already below the 2020 target of 3.5 hl/hl. The target is 3.3 hl/hl in water-scarce and water-distressed areas.

Specific water consumption has decreased by 11 percent since 2008 in the two breweries operating in Hungary. It remained within target in 2015, but increased by 5 percent in 2015. The increase was due to an investment implemented in Sopron in 2015 as a result of which our beer racking procedure had changed and CIP containers (water dispenser) had to be washed more frequently. This required more water in 2015 than in 2014. However, building on the benefits of the investment, we plan to further decrease our water consumption significantly in 2016.

Wastewater treatment

Both of our breweries have modern wastewater treatment plants operating with aerobic and anaerobic technologies. These are to ensure that the treated water returned to the environment meet regulatory requirements in every respect and the effluent organic load we discharge to surface water is lower than HEINEKEN N.V. average (17,5 kton COD).

Our organic load discharged to surface water increased in 2015 by 32% compared to 2014 from 6.2 kton to 8.2 koton COD (chemical oxygen demand). Nevertheless, it met regulatory requirements.

”Drinking water is becoming a highly valuable resource. Therefore, protecting water supplies is not simply a business goal, but a duty we owe to the community. Being aware of this, we strive to decrease our water consumption each year.”

Maria ButlerSupply Chain Director

Specific water consumptionhl/hl

3,8 hl/hl2015

2014

2013

2012

2011

2010

2009

2008

3,8

3,7

3,6

3,6

3,9

3,9

4,0

4,3

Effluent organic load discharged to surface water kton COD

8,2 kton COD2015

2014

2013

2012

2011

2010

2009

2008

8,2

6,2

18,0

7,9

17,8

11,0

7,6

10,8

Case studyUV disinfection in the racking shop

In 2015, we modernised our racking procedure. The development project aimed to decrease the quantity of chemicals we use for cleaning equipment and maintenance, increase lifespan of the equipment and prevent them from getting infected with bacteria.

Prior to the project, we used chemicals to wash containers and pipes to prevent bacterial infection during racking. Exposure to chemicals lead to a relatively fast deterioration of the equipment, while chemicals added up to our wastewater discharge.

We placed two UV lamps in the racking shop during the project, which disinfect the water coming in from our two wells and the public sewer system. UV disinfection is a method absolutely clean causing no harm to people, the fauna and aquatic life without any co-products. It is very efficient eliminating practically all the micro-organism including those resistant to chlorine.

With this new technology we successfully avoided using chemicals, and thus our waste water discharge decreased. Besides UV, we only use hot water for cleaning, which cause less damage to CIP containers and increase their lifespan.

Since 2008 our water consumption decreased by

11%

REDUCINGCO2 EMISSIONS

SOURCINGSUSTAINABLY

ADVOCATINGRESPONSIBLECONSUMPTION

PROMOTINGHEALTH ANDSAFETY

GROWING WITHCOMMUNITIES

VALUES ANDBEHAVIOURS

AGRICULTURE

FOCUS AREAS

MALTING BREWING PACKAGING DISTRIBUTION CONSUMERCUSTOMER

PROTECTINGWATERRESOURCES

AREAS




Reducing CO2 emissions Actions and results


Reducing CO2 emissions in production by 40%.

Reducing CO2 emissions of our fridges by 50%.

Reducing CO2 emissions of distribution by 20% in Europe and the Americas.

Our carbon footprint

In 2015, HEINEKEN N.V. updated the carbon footprint previously published in 2012. The updated figures were calculated across our global operations and our complete value chain, From Barley to Bar. Results show the global total carbon footprint of HEINEKEN N.V. has decreased has decreased from 68.4 kg CO2-e/hl in 2012 to 64.1 kg CO2-e/hl – a reduction of 6.3%. This is mainly because emissions from cooling have had a substantial decrease of 5.8 kg CO2-eq/hl. This is due to the use of more energy-efficient fridges as a result of the Green Fridges programme. Global emissions from brewing and beverage production have also shown a substantial decrease of 2.6 kg CO2-eq/hl. This is due to continuous improvements in our breweries to reduce energy consumption and using more renewables in the consumption mix.

Reducing CO2 emission in production

HEINEKEN N.V. reduced CO2 emissions in production by 36 percent since 2008. Global emissions decreased both in quantity and proportion despite the fact that beer production volume increased by 43 percent since 2008 while annual greenhouse gas emissions decreased by 8 percent. This is due to projects aiming for more efficient energy consumption and utilizing more renewable resources.

HEINEKEN Hungary emitted less CO2 in 2015 than the global target (7,6 kg CO2-eq/hl) and the group average (6.7 kg CO2-eq/hl). 5,8 kg CO2-eq/hl measured in 2015 shows a 2 percent increase compared to the previous year. However, our emissions did not grow in quantity, only specifically. Our company has walked a long way since 2008 reducing CO2 emissions by 32 percent.

Product Environmental Footprint

In 2015, as a member of the Brewers of Europe, HEINEKEN N.V. continued to participate in a pilot process to develop the Product Environmental Footprint (PEF) of beer. The initiative, driven by the European Union, aims to extend product lifecycle thinking beyond just carbon footprint – for beer and other industries – into a wider range of environmental impacts. The goal is to develop a common tool for measuring environmental performance, providing a reliable and comparable resource for all stakeholders.

The draft rules for the PEF of beer have been developed and have been approved. In 2016, these rules are planned to be tested in a supporting study and where necessary amended prior to finalisation.

”Environmental protection incites us to making our operation more effective by innovation thus investments into green technology can make us more competitive in the long run.”

Károly Lihotzky,Supply planning and logistic manager

Specific greenhouse gas emissionskg CO2-eq/hl

5,8 kg CO2-eq/hl2015

2014

2013

2012

2011

2010

2009

2008

5,8

5,7

4,5

5,6

5,5

8,2

6,3

8,6

Case studyElectric forklifts to further decrease our carbon footprint

HEINEKEN Hungary decided to outsource material handling in 2015. Since then, electric forklifts help us run material handling tasks.

The decision had multiple benefits for our company. Our carbon footprint decreased

by 4.3 tons annually due to electric forklifts. Their impact was considerable, because the number of pallets to be moved has been constantly growing for the last few years at our company expect amounting to 3.6 million in 2015 and expected to be even higher in 2016. Using a more environmental friendly technology saved money for us too, outsourcing made costs more predictable, while fleet management became more efficient while occupational safety improved.

2008

CO2 emissions reduced by

32% since 2008

2015


SOURCINGSUSTAINABLY





AGRICULTURE

FOCUS AREAS



9%5%

14%

39%

12%

21%

64,1(kg CO2-e/hl)

• Agriculture• Malting and adjuncts• Beverage production• Packaging

materials• Distribution• Cooling

Carbon footprint HEINEKEN Global

AREAS




BIER Climate Change Commitment As a member of the Beverage Industry Environmental Roundtable (BIER), HEINEKEN N.V. collectively recognises climate change as one of the greatest challenges facing the prosperity of society. In response, HEINEKEN N.V. has signed the BIER 2015 Joint Commitment on Climate Change, committing to:

• Continue to reduce energy consumption and source cleaner fuels within our operations in order to reduce our CO2 footprint

• Work together as BIER members to share tools and knowledge to help manage water risk

• Collaborate on research and partnerships in the agricultural sector to create a more climate-resilient food chain

• Continue to reduce our water footprint as an industry and support other sectors to minimise their footprint.

Green fridges

In 2015, HEINEKEN N.V. continued to replace traditional fridges with environmental friendly ‘green’ fridges: more than 115 thousand of them were bought worldwide.

HEINEKEN Hungary purchased and installed 888 new, ‘green’ fridges in Hungary last year raising their proportion to 52 percent in the Hungarian market. This signifies an 7 percent increase as compared to 2014.

HEINEKEN N.V. has precisely defined the criteria that all new fridges must meet, so we only buy ‘green’ fridges: they are operated with hydrocarbon, which does not damage the ozone layer, lit by LED lights to save energy and lengthen lifespan, and equipped with EMS (Energy Management System). ‘Green’ fridges consume 45 percent less energy than traditional ones.

Energy consumption

Total energy consumption comprises of thermal and electricity consumption. HEINEKEN N.V. consumed 93.4 MJ/hl to produce one hectolitre beer, cider, refreshment and water in 2015. This included thermal energy consumption of 64.8 MJ/hl, 4.2 percent lower than in 2014. Electric consumption amounted to 7.9 kWh/hl, 2.2 percent less than in 2014.

HEINEKEN Hungary consumed 4 percent more energy last year but no more than the group average. Although the specific consumption grew, total consumption remained steady in 2015. Compared to 2008, we reduced total specific energy consumption by 25 percent.

Our specific thermal energy consumption increased by 4 percent last year, but decreased by 31 percent since 2008 and was lower than group average.

HEINEKEN Hungary specific electricity consumption also increased last year by 5 percent, while total electricity consumption remained unchanged. It decreased by 9 percent in the last seven years and it is lower than the group average.

Utilizing renewable energy is a priority for us. 31 percent of our thermal energy, and about 10 percent of our electricity is derived from renewable sources and we intend to further increase these proportions.

Waste management

We continuously monitor the recycling rate of our waste and co-products. By improving this rate, we aim to fully recycle all residual products.

In 2015, 71 out of 159 of HEINEKEN N.V. production units globally sent virtually zero waste to landfill. We plan to further roll out zero waste to landfill to other production units in the coming years. According to HEINEKEN 2015 Global Sustainability Report, the main residual products from the brewing process are brewer’s spent grains (73%), surplus yeast (10%) and materials like glass (4%), cardboard, aluminium, plastic and paper. Currently, 94% of the HEINEKEN residual products, in global level, are recycled into feed, material loops, compost or energy. Brewer’s grains and yeast, for example, have a high nutrition value and are recycled for animal or human consumption. 6% of the residual products, in global level, that are not recycled, are incinerated or sent to landfill. This is a total of 210-ktonne waste globally, which HEINEKEN will reduce in the coming years.

Almost 99 percent of total residual products were recycled in Hungary last year. We sell most of our co-products primarily for use as animal feed or compost. Other waste materials (paper, cardboard, wood, metal, glass, plastic) are also mostly recycled and a small proportion of them are delivered to landfill as communal waste.

The efficiency of waste management for HEINEKEN Hungary demonstrated by the proportion of non-recycled waste, namely the amount of non-recycled industrial waste produced by the production of 1 hl beer. We aim to reduce that proportion by improving our waste management system.

Specific non-recycled industrial waste increased from 0.2 kg to 0,24 kg/hl in 2015. Non-recycled industrial waste decreased by 74 percent since 2008 in Hungary.

Total specific energy consumption MJ/hl

91,5 MJ/hl2015

2014

2013

2012

2011

2010

2009

2008

91,5

87,7

87,1

89,4

102,1

113,9

115,0

122,7

Specific thermal energy consumptions MJ/hl

65,0 MJ/hl2015

2014

2013

2012

2011

2010

2009

2008

65,0

62,5

62,2

63,5

75,5

86,4

87,1

93,6

Specific electricity consumption kWh/hl

7,4 kWh/hl2015

2014

2013

2012

2011

2010

2009

2008

7,4

7,0

6,9

7,2

7,4

7,6

7,8

8,1

Specific non-recycled industrial waste production kg/hl

0,24 kg/hl2015

2014

2013

2012

2011

2010

2009

2008

0,24

0,20

0,22

0,21

0,26

0,80

0,33

0,91

52% of our fridges are green

Green fridges consume

45% less energy

Total specific energy consumptions decreased by

25%-since 2008

31% of our thermal energy provided by renewable sources

99% of total waste recycled




Sourcing sustainablyActions and results


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.

In line with the guidelines of Sustainable Agriculture Initiative (SAI) Platform, we consider sustainable soil and water management, preserving biodiversity, reducing greenhouse gas emission and waste production, providing working environment matching regulatory requirements and active participation in local economy as criteria of sustainable business conduct.

In 2015, HEINEKEN N.V. reached sustainable volumes of 21% of barley, 53% hops and 71% bittersweet apples for cider in global scale.

All partners of HEINEKEN Hungary had signed the Supplier Code and thus had agreed to enforce an approach of sustainability in their daily business routine. We had all of our suppliers audited by an independent international auditor SGS between 2012 and 2015.

Local sourcingHEINEKEN Hungary aimed to maintain or raise the proportion of local agricultural products in procurement in 2015. 86 percent of the volume of the two most important raw materials (barley and corn) came from Hungarian agriculture in 2015, which is a 11% increase compared to 2014. In 2015 HEINEKEN Hungary signed a commitment to using 100% Hungarian barley for the production of Soproni Klasszikus, the most popular beer in Hungary. Owing to the market success of Strongbow ciders, we could increase the amount of apple concentrate made of Hungarian apple. In 2015, we purchased 80 000 tons of apple in Hungary corresponding to more than 10 percent of total apple crop in Hungary.

”Sourcing sustainably is not just environmental friendly, but it helps our communities develop. As a significant barley purchaser in Hungary, we have an important role in helping Hungarian farmers grow.”

Szilárd Vörös Finance Director

86% of the two most important raw materials purchased locally

Case studySoproni made of 100% Hungarian barley

As of January 2016 Soproni Klasszikus and Soproni Freshly Draft beers are committted to be made of 100% barley purchased in Hungary. HEINEKEN Hungary purchased malt made primarily of Hungarian barley for brewing Soproni before from the Dunaújváros and Ógyalla (Slovakia) malteries. However, the agreement the company signed last year with barley grower integrators says that barley to be used for Soproni should be stored separately thus the beer is made of Hungarian barley guaranteed. In line with this commitment we have reviewed and restructured our supply chain and storage procedures and a source monitoring system has been applied to control the way barley for Soproni is processed within the brewery. As a result of the agreement about 100 barley growers in underdeveloped regions in the Northern and South-Western parts of Hungary were given the chance

to sustainably supply barley for making the most popular beer in Hungary.

HEINKEN Hungary was the first among the large beer brewers in Hungary to make such commitment to supporting local barley cultivation, being in line with the strict quality insurance policy of the global company. Our company will abide by its decision even if Hungarian barley becomes more expensive than those grown in neighbouring countries. This is not just an obligation imposed upon us by the agreement but one that comes from our commitment to high quality.

Part of the barley is processed in the HEINEKEN maltery located in Ógyalla, Slovakia, which plays an important role in the beer production of other countries in the region thus providing export markets for Hungarian farmers. Beers for the Hungarian market are brewed in the Sopron and Martfű breweries of HEINEKEN Hungary. This needs about 20 000 tons of malt corresponding to about 26 000 tons of barley, about 20 percent of total barley crop in Hungary.


SOURCINGSUSTAINABLY





AGRICULTURE

FOCUS AREAS



AREAS




For an adult aware of his or her limits, beer is a source of enjoyment making friendly encounters even more delightful. Nevertheless, as a leading brewer of Hungary we are aware that excessive alcohol consumption can cause harm, which is a realistic, but complicated social issue that cannot be addressed with simple solutions. Advocating responsible consumption is therefore a high priority of our business.

As a member of the Advertising Self Regulatory Board (Önszabályozó Reklám Testület) HEINEKEN Hungary strictly complies with rules of responsible commercial communication. We also addressed consumers in cooperation with our partners – NGOs, the government and other industry players – to increase awareness of the dangers of excessive alcohol consumption.

Our preventive initiative was launched in 2009 addressing young adults and their parents. The website www.holahatar.hu contains facts and misbeliefs about alcohol consumption, tips and even recipes with beer. The website was visited more than 12 000 times in 2015. We have advertised the website on our product labels for the last few years.

Cool@work

Each employee of HEINEKEN Hungary is responsible for shaping the public image of beer, therefore all of them are the ambassadors of beer culture, and their behaviour should reflect HEINEKEN principles on responsible consumption. Our alcohol policy is based on the guidelines of HEINEKEN’s international Cool@Work program related to consumption in and out of work.

Each of our colleagues whose jobs are related to marketing, law or communication completed a training on RCC (Rules on responsible communication) in 2015. Our internal policy also requires that each of our communication materials must bear the ‘Enjoy responsibly’ logo including the labels of our products.

We launched an internal campaign for raising awareness of responsible consumption every year in concert with other HEINEKEN subsidiaries. More than 40 000 employees of 56 countries joined the campaign on 20th of September 2015. We contributed to the campaign in Hungary with newsletters, quiz, raffle and a mobile application called Call-a-Driver that draws attention to the importance of moderate and responsible consumption.

Case studyCall-a-driver app

We launched a campaign to advertise a mobile application, Call-a-Driver in cooperation with a Hungarian start-up in 2015. This is a new, unique and modern solution displaying all the driver services available nearby and list them for the user according to their prices, speed or quality of service.

If you drank while in company and cannot drive, all you need to do is tapping your smart phone to get access to driver services thereabout and choose one of them to drive you and your car home.

The application is not only handy, but also raises awareness of drink-driving risks. Together with beer mats it provides entertaining tongue twisters to illustrate how tiny bit of alcohol is enough to restrict our ability to act. With the application we warn our consumers not to drive under the influence of alcohol. During the campaign the message was delivered to 50 000 Facebook users; the video footage about Call-a-Driver was viewed on the web more than 7800 times and more than 1000 people had downloaded the application.

Advocating responsible consumptionActions and results


Make responsible consumption aspirational through Heineken®.

Build measurable partnerships in every market in scope, aimed at addressing alcohol related harm.

Take action at an industry level, in collaboration with 11 global alcohol businesses.

”By reviving its traditions we helped beer reborn as a sophisticated, fashionable drink of gastronomy and entertainment. I am proud of this and I am glad that beer is becoming increasingly popular among women.”

Márta Pálfalvi Corporate Affairs and Communications Director

The ”Enjoy responsibly” logo was displayed on more than

120 million cans

and 227 million bottles in 2015 in Hungary.


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Accidents and safety performanceCompany-wide there were 5 accidents in 2015. There was only one, not severe accident at work in Sopron, while not a single accident happened in Martfű in 2015. Colleagues in Martfű celebrated the 1000th day without accident on the 19th of June 2015.

The outstanding achievement was partly due to Behaviour-Based Safety (BBS) procedure introduced last year in our company and the audits carried out in line with it. This later concentrates on the attitudes of groups not individuals and the recognition also goes to them. This motivates people to pay attention to one another during daily work and warn one another to comply with safety rules by this means improving and making processes safer. The introduction of Safety Champions program helped the new approach get adapted.

BBS is accompanied by TPM methodology which helps identify, describe and quickly share near misses. This is why we use colour codes across the sites to mark hot spots or places with high risk of safety. Regular work safety trainings have also contributed to improvement as well as the involvement of external experts in operatin our machines safely. We permanently work on projects that aim creating an ergonomic working environment.

Disaster Prevention Day in Sopron

We held a Disaster Prevention Day in Sopron in October last year attended by all employees of the brewery. After the presentation of the town fire brigade chief, employees simulated an emergency case. They also participated in first aid trainings.

Reanimation training in our Budapest office13 of our employees participated in a reanimation training in our Budapest office in 2015. Participants learnt, among others, how to use the defibrillator (AED device) placed in their office. By completing the training, they became certified re-animators.

With the life-saver device within reach death by cardiac arrest can be prevented. In such cases immediate (in 1-2 minutes) reanimation can be crucial, and the usage of the device does not require special expertise.

Disease prevention days

HEINEKEN Hungary joined comprehensive nationwide health screenings supported by the EU for the fifth time. All employees were offered a complex health-screening test free of charge on the Corporate Prevention Days. 1505 tests were produced in total, of which company management received a detailed anonymous report.

Sport DayWe held a Sports and family day on 21st of September 2015 in the Driving Camp of Zsámbék. The patron of the event was Gábor Talmácsi Hungarian professional motorcycle racer, former world champion and it was attended by 350 people, our employees and their family members. Besides sport competitions, the event hosted health screening tests, a cooking competition, programs for children and a dance show. The Hungarian Interchurch Aid was also represented with its Ygen program of Soproni Good Deed.

With the participation of 2000 HEINEKEN sales representative in Alert Driving training since 2008 a global target set for 2015 was achieved. HEINKEN also contributed to this by offering all participants in the Sport Day a safety test drive. 90 colleagues of ours completed the Alert Driving training in four modules.

Safety firstNo training or communication can match the experience in efficiency when one learns how valuable his or her health and safety is for relatives. Recognising this lead us to launch an awareness raising program in 2015. We asked our employees’ children to tell what their parents’ safety mean to them and announced a drawing competition in this topic. We shot a film about this and circulated it via the internal communication channels of our company.

In addition to this, we put safe driving on the agenda of regular workshops underlining its importance for the management. We summarized what we consider indispensable for safe driving in five golden rules. Team leaders presented them to their colleagues and stickers displaying the five golden rules had also been placed in sales representatives’ cars. To make driving even safer we replaced all handsfree sets in the cars of the sales fleet.

”Our colleagues’ strong commitment towards the company is essential for us. Every year we are measuring our company climate to be able to further improve working conditions and general mood within the organisation. We put special emphasis on projects related to work safety and accident prevention, not only in our breweries but on the roads as well.”

László Diós Human Resource Director

Promoting health and safetyActions and results


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There are more than 81 000 people worldwide who work for HEINEKEN, including 524 employees in Hungary. Our success lines in the corporate culture we have shaped together. The core elements are occupational health and safety as well as motivational working environment where we pay attention to each other’s needs.

Employees are key to the sustainable development of HEINEKEN and therefore they are the most valuable “assets”.

More than

1000 accident-free days in Martfűn Case study

Guaranteed minimal wages at HEINEKEN Hungary Employees are key for our sustainable development. HEINEKEN would not be successful in business without commit-ted employees, therefore they earn the benefits the company can provide them. HEINEKEN Hungary recognises this by giving employees minimum wages higher than what the law prescribes.

The minimum salary by the law was 105 000 forints in 2015 in Hungary, but HEINEKEN Hungary guaranteed 52 percent more, 160 000 forints to its employees.

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Growing with communities Actions and results

We can make the greatest contribution to the communities in which we operate through our business itself, via job creation, business for suppliers and by paying taxes. When HEINEKEN is successful in business, its communities flourish. HEINEKEN Hungary is an active member of the social life of Sopron and Martfű, and plays an important role in the local economy. The local tax HEINEKEN Hungary pays amounts to 7 and 17 percent of the total budget of Sopron and Martfű respectively. That is, the impact of our operation – the work of 524 HEINEKEN Hungary employees – is manifested even on the level of national economy.

We define our CSR strategy through dialogue with our stakeholders and take their needs and opinions into account when making decisions.

Soproni Good Deed Program

In 2014, we launched Soproni Good Deed program with the largest lump sum donation in Hungary. We helped unemployed people find jobs via Ygen Human Resource centres of the Hungarian Interchurch Aid that we supported with 101 million forints. From the donation we carried out a two-year project participated by almost 800 jobseekers. 60 percent of the jobseekers involved in the program found a job.

We delivered the optimistic message of Soproni Good Deed to the audience of our festivals and that of a 10-stop national job fair roadshow, and through a toll free job search

telephone hotline reaching 5000 jobseekers. This number was advertised on the packaging of more than 500 000 Soproni multipacks and 300 000 coasters. A total of more than 10 million people were reached by our awareness raising campaign of Soproni Good Deed.

The program made Soproni the first socially responsible beer brand in Hungary. None of the beer brands in Hungary has ever launched a CSR program before. The Good Deed program won a number of professional recognitions: it was awarded the Golden and Platina Effie, the Golden Prism and HEINEKEN Global Social Responsibility and Sustainability Prize in 2015.


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”The company and its community are interdependent: none of them can be successful without the other. HEINEKEN Hungary actively looks for any opportunity to engage its stakeholders and welcome their feedbacks about its operation.”

Kata Bors Corporate communication and digital content manager

Our business brings us into the 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.

Case studyStakeholder Forum in Sopron

We invited our stakeholders to a consultation in April 2015 in Sopron: representatives of the municipality, major suppliers, representatives of NGOs and opinion leaders. We wanted to get a feedback from our stakeholders and respond to their needs. We learned these in advance by conducting one-to-one interviews with each of the invitees so that we could

prepare for the event with relevant topics and answers.

Attendees shared their views on current beer market situation and the role HEINEKEN Hungary plays in the country and Sopron, and the relationship between our company and the local community. The discussion touched upon various topics such as corporate sponsorship, marketing communication, labour market and education, responsible consumption and local road load.

Many participants praised the contribution HEINEKEN Hungary made to the development of the town and the way it helps shape the image of Sopron in Hungary and abroad. They urged a better collaboration between town marketing and our product marketing that both parties can benefit from. All participants expressed openness to further developing partnership and representatives of our company promised to make steps to solve current issues like common use of driveways.

Soproni Good Deed program: almost

500 jobseekers found jobs

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Values and behavioursIntroduction

23Heineken Hungária Sustainability Report 2015

The big picture Focus areasFocus areas Values and behavioursIntroduction

22Heineken Hungária Sustainability Report 2015

The big picture

Volunteering

In 2015, we organised our corporate Voluntary Day adjusted to the Soproni Good Deed program too. Our volunteers cleaned the offices of Ygen in Sopron and many of them helped organise the roadshow and other events in the country.

Earth Day in Martfű

We cleaned the bicycle road between Martfű and Rákócziújfalu and the river bank of Tisza of garbage together with the volunteers of Bunge Co., our local partner, on 25th April 2015, on international Earth Day. A total of 140 people took part in the job who then relocated native fish into the River Tisza with children and professionals.

Voluntary work at the Sopron Forestry Foundation

26 colleagues of ours and their family members showed up in the morning on the 9th of May 2015 at the Sopron lookout tower Várhely in order to renew 14 tables and 30 benches and the information boards located along the pathway leading to tower. This was the fifth time that we helped the Sopron Forestry Foundation. It was great fun being together and helping our community.

Amstel Solidarity Foundation

Amstel Solidarity Foundation was established in 1998 in order to provide opportunity for employees to help colleagues in need with their own donations. Since 2005 the company itself has got involved actively in the work of the Foundation and supported its goals.

Employees donated 1 percent of their personal income tax to the organisation amounting to nearly 1 million forints completed by the company with a financial support of 1 million forints in 2015. Financial supports were given in 28 cases totalling 2.4 million forints with an average value of 113 000 forints last year based on the decision of the Board of Trustees and in line with the goals of the Foundation. The foundation devoted the bulk of donations to finance the funerals of former HEINEKEN workers last year.

Local donations

We celebrated two jubilees in 2015: the 120th anniversary in Sopron and the 30th in Martfű. We celebrated the birthdays of our breweries by beer festivals at each location. We offered the revenue we made in these festivals to local NGOs selected by the votes of festival attendees. The Social Institution of Sopron and the Martfű City Beautification Association won most of the votes and the revenue of the festivals along with it in Sopron and Martfű respectively.

Case studyWe supported local role models

It is a priority for us to have a positive impact on our communities inciting development. We are positive that communities need talents and role models to develop; people who share their success with their communities in return for the support they received from it.

In line with this conviction we decided to support the initiative by the Role Model Foundation (Példakép Alapítvány) as a chief donor. The foundation aims for the recognition of young entrepreneurs under the age of 40 who show a positive example for the society and the youth with their activities and way of life. In this pursuit they announced a competition for winning the Role model of the Year prize.

We provided further donation for the winner of the Audience Award. This was awarded to Dávid Merker, general manager of the Városi Séta Ltd. (City Walk Ltd.) for realising the city sightseeing walks Hosszúlépés. Járunk?.

It is a sightseeing tour based on various themes and games in Budapest having emerged to market leadership in Budapest since spring 2013 both in the number of walks and the size of clientele.

Values and behaviours Actions and results

HeiCode

The corporate code of ethics called HeiCode defines our commercial policy and the behaviour we expect from our employees in and out of work, and in relationship with our partners. All our entrants received a HeiCode training in 2015 and learned basic rules of ethical business conduct like conflict of interest and principles of fair competition. Speak Up policy was introduced in 2013 in our company, which encourages employees to share their doubts and report every case that they feel might breach HeiCode norms.

Employee engagement

Since 2010 employees have been asked in every two years to give feedback on how they feel themselves in the company. Since 2014 this Climate Survey is conducted every year. 89 percent of employees shared their views anonymously in the one conducted in October 2015. The survey examines 11 dimensions each time. The employee engagement index of HEINEKEN Hungary improved by 2 percent compared to 2014.

Direction and alignment (73%), My manager (78%) and Commitment (80%) had the best scores in 2015. The survey showed the greatest progress in the dimensions of Cooperation and teamwork, and Individual development and career.

We pay attention to our colleagues’ opinion. Results of the survey help us identify the issues, which really matter to our employees and initiate actions for the coming years.


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”One enjoys going to work when working environment is motivating. Those who feel content at work perform better. Friendly, encouraging atmosphere at work and supporting our employees are high priorities for us, while we are aware that they also help us be successful in business.”

Kitti Horváth People and Organisation Development Manager

The Amstel Solidarity Foundation has donated more than

22 million

forints to 220 employees in need as an endowment since its establishment.

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Which aspects of Brewing a Better World are working well? Where do you think we could do better? We look forward to hearing your views and suggestions. BrewingaBetterWorld@ HEINEKEN.com

José Matthijsse, Managing Director of HEINEKEN Hungary Maria Butler, Supply Chain Director Márta Pálfalvi, Corporate Affairs and Communication Director Kata Bors, Corporate Communication and Digital Content manager

This publication is the property of HEINEKEN Hungary: 9400 Sopron, Vándor Sándor u. 1. Tel.: +36 99 516 100 e-mail: [email protected] internet: www.heinekenhungaria.hu

This publication was made by: Heineken Hungary Sustainability Department Copywriting, editing: Uniomedia Communications Co. 2015

Design, digital version by: •AddisonCorporateMarketingLtd.,London•FormaaBt.

Photos, graphs:All photos and graphs are the property of HEINEKEN Hungary Co.

Reference Information

This report is available online at heinekenhungaria.hu/fenntarthato-fejlodes/fenntarthatosagi-riportokGlobal Sustainability Report 2015 (audited by KPMG): sustainabilityreport.heineken.com

sustainability report 2015 - the heineken company...this report summarizes heineken hungary’s...

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