transformation for sustainable growth

2015 Sustainability Report

Transformation for Sustainable Growth

Sustainable Business Operations

Product Excellence and Responsible

Consumption

Sustainable Sourcing

2 3

Our 85 years presence in Nusantara has made us more alive than ever in responding to all the challenges in life and turning them into opportunities. We survived the Second World War, two episodes of monetary crises but still managed to be acknowledged as one of the legendary best-performing companies in Indonesia.

We continue to innovate and develop international quality products and brands that are loved by consumers. We also take pride in the fact that the employees and products of Multi Bintang have become a symbol of hospitality and taste of Indonesia to the world. All of these strengthen us to become a reputable and responsible Indonesian beverage company with portfolio of beer and non alcoholic beverages.

Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK

Keeping the balance of these three elements is an art that we continue to refine in the past 85 years. It is not easy and simple, but it brings out our best quality which makes everyone who interacts with us can feel enjoyment. That is Multi Bintang. We Brew Enjoyment.

Let’s celebrate the 85 years’ achievement of Multi Bintang, continue to be progressive and give the best to Indonesia.

What keeps us going and makes us 85 years more alive?

Appendices & GRI IndexThe Big Picture Our Focus Areas Values & BehaviorsAppendices & GRI IndexThe Big Picture Our Focus Areas Values & Behaviors

RESPECT

We believe on the importance of giving respect, which is naturally present within each and every person in Multi Bintang. Respect means, among others, we never obliged anyone to consume beer as a sign of loyalty to the company.

Responsibility which in turn makes us so determined, brave and agile in facing challenges; while we continue to uphold the laws and social ethics. This is born out of our responsibility to all stakeholders.

RESPONSIBILITY

The working environment in Multi Bintang encourages us to work together in giving always the best. Those achievements build a sense of pride and create enjoyment in togetherness.Enjoyment is the main reason why people consume the products of Multi Bintang. Enjoyment also explains why we score a high rate of employee engagement. Enjoyment is the social adhesive inherent in all products of Multi Bintang.

ENJOYMENT IN TOGETHERNESS


54

OUR SUSTAINABILITy REPORT 2015

This Sustainability Report 2015 titled Transformation for Sustainable Growth, summarises PT Multi Bintang Indonesia Tbk (Multi Bintang)’s sustainability progress on “Brewing a Better World”1 in 20152 . Our first Sustainability Report 2014 titled Our Stories on Growing Together with Communities was published last year in October 2014 and we plan to report on annual basis3 . We continue our sustainability initiatives on the topics that we have confidence of the greatest material importance to our Indonesia’s stakeholders and business. We expect this report to serve as a communications tool with our stakeholders and as a performance benchmark Multi Bintang to mark our sustainability progress.

We produce our report in accordance with version 4.0 of the Global Reporting Initiative Guidelines (G4) - Core4. Our sustainability performance is consolidated in the Heineken N.V. 2015 Sustainability Report, which has undergone external assurance by Deloitte Accountants B.V. dated on 6 April 20165 in the Netherlands (see Appendix 1). While we have not sought external assurance for our own report this year, we will consider it as our reporting matures over time6.

Head OfficeTalavera Office Park 20th FloorJl. Let. Jend. TB Simatupang Kav. 22-26Jakarta 12430, IndonesiaJakarta 10032T. 021-7592 4611F. 021-7592 4617

Tangerang BreweryJl. Daan Mogot Km 19,Tangerang 15122, IndonesiaT. 021-619 0108, 545 0750F. 021-619 0190

Sampang Agung Brewery & Non Alcoholic Beverage PlantJl. Raya Mojosari-Pacet Km. 50, Sampang Agung, Kec. Kutorejo,Kab. Mojokerto, Jawa Timur, IndonesiaT. 0321- 592 505F. 0321- 592 508

www.multibintang.co.id

We welcome your feedback on our 2015 sustainability report. Kindly communicate to our Corporate Affairs Division at the following contacts: Email: [email protected]: +62 (21) 7592 4611 (hunting)

1 Brewing a Better World is the HEINEKEN Company Global sustainability framework which is adopted by Multi Bintang for its sustainability approach.

CONTENT

ThE BIG PICTURE

02 85 Years of Brewing Enjoyment

04 New Corporate Identity

06 President Director Foreword

08 About Us & Achievement

11 Financial Performance (Highlights)

13 About Sustainabiliy Reporting

14 Brewing a Better World

20 Our Commitments & What We Have Done

OUR FOCUS AREAS

30 Protecting Water Resources

38 Reducing CO2 Emission

44 Sourcing Sustainability

48 Advocating Responsible Consumption

58 Promoting Health and Safety

64 Growing with Communities

VALUES AND BEhAVIORS

70 Behavior and Culture

72 Our Workfoce

77 Case Studies

GRI G4 Index Table & Appendices

5

To signal PT Multi Bintang Indonesia Tbk (Multi Bintang)’s transformation and updated vision that is to WOW Indonesia with our brands, people and performances, in February 2015 we launched our new corporate identity and named it The Spark. The new logo has a modern and dynamic look that represents the agility and innovativeness of our people, brands and organization.

The five colors of the rejuvenated star logo represent Multi Bintang’s core values, our passion for Indonesia and signify the Company’s new direction.

NEw CORPORATE IDENTITy

vision

mission

To be a reputable and responsible Indonesian beverage company, with a portfolio of leading

brands.

Appendices & GRI IndexThe Big Picture Our Focus Areas Values & Behaviors Appendices & GRI IndexThe Big Picture Our Focus Areas Values & Behaviors

Respect for people & planet

Enjoyment of life

Brands that people love

Part of Indonesia's heritage

Passion for quality in

everything we do

Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK

http://www.multibintang.co.id/

mailto:%20cs%40multibintang.co.id?subject=

76

Sustainable Brands and Partnership In the course of last year, we expanded the participation of our brands in sustainability elements in their consumer communication. We expanded the reach of our communications on responsible consumption to our customers and in a number of our brand activation programs, read the story on page 50.

During 2015 we have also embarked on various new partnerships. We are working with the Indonesia’s Brewers Association (GIMMI) to expand our advocacy on responsible retailing with our customer to ensure that our products are sold to consumers of the legal drinking age. We are keen to expand further our partnership activities in the off-trade. This is also an evident that we continue to make progress on responsible consumption topic despite the recent regulatory restrictions. For a detailed description of our partnership approach, see Spotlight on Partnerships, page 29.

Future ReportingTo conclude, we are confident with the progress we have made in 2015, though we are aware of the challenges ahead. We can only achieve our ambition through the ongoing efforts as well as by continuing to engage and listen carefully to our stakeholders. In order to meet our 2020 commitments, we have created concrete new milestones for 2018. We will report our progress towards these milestones each year in our Sustainability Report. We need to further improve our reporting systems to generate robust data faster than in previous years and will consider to do so by exploring Integrated Reporting in the near future.

Looking ahead, we are optimistic that our business strategic focus aligned with sustainability initiatives will help Multi Bintang to achieve its target. I would like to thank everyone who has supported us on accelerating our sustainability journey.

Michael Chin Kean huatPresident Director

of innovations to respond to evolving tastes and habits. Therefore, we are confident that there will be opportunities for growth across our portfolio which many will be launched in 2016.

Sustainability PerformanceLeading up to our Brewing a Better World commitments for 2020, we made good progress meeting the milestones for 2015 in key focus areas. • We delivered on water reduction and the

implementation of our water balancing project, scheduled in 2016, despite the slight delay following the regulatory restrictions that significantly impacted the operation and performance of our industry.

• Our CO2 emission performance was below our target following drop in production volume. However, we plan to explore a number of emission friendly initiatives e.g. biogas, solar energy as alternative renewable energy for 2016.

• Further on the Green Fridges initiative on replacing conventional cooling systems is on track and will eventually become effective in 2016 and the coming years.

• We continued to expand our partnerships and advocacy with our industry peers and retailers to combat harmful use of alcohol and promote responsible consumption.

• In other commitment areas, we have exceeded our expectation and met our 100% target earlier for compliance with our Supplier Code. We will continue to maintain our compliance in the coming years.

• On health and safety aspect, we achieved all targets: zero accident frequency, reporting, safety e-learning and road safety.

• In addition, we will improve the structure of our community investment program and reporting to ensure that all of our efforts in the area have more impactful results.

For a detailed performance overview, please visit the section “What we said and what we’ve done” on page 20 as well as for the health and safety targets on page 58.

We are delighted to publish our second year of Sustainability Report 2015 titled Transformation for Sustainable Growth as a testimony of our commitment to progressing in our sustainability front. Sustainability is always at the core of Multi Bintang’s business strategy.

In 2015, Indonesia supported the 1.5°C warming cap in the Paris Agreement, instead of previously committed 2°C in its Intended Nationally Determined Contribution (INDC), delivering a crucial contribution to world’s sustainability agenda. In December 2015, nearly 200 countries reached this significant agreement to address climate change, and in October 2015 the United Nations introduced the Sustainable Development Goals (SGDs) designed to end poverty and address a broad set of topics, making sustainable business mainstream. In the coming year we will consider these additional topics in our approach to enhancing our sustainable business.

Last year also was a challenging year for our business operations and financial performance in Indonesia, following the unfavorable economic conditions and the ministerial regulation restricting the sales of beer in minimarkets. These challenges may have affected some of our sustainability programs, that had been planned out for the year, however, it did not stop us to address some critical issues such as

PRESIDENT DIRECTOR'S FOREwORD

the harmful use of alcohol, including underage drinking, the growing concern over illegal bootleg alcohol that we need to tackle as a company and also as a collective industry to ensure our future presence and business sustainability in Indonesia. Our sustainability strategy, Brewing a Better World (BABW), revolves around following six key areas: Water, CO2 Emissions, Responsible Sourcing, Health and Safety, Responsible Consumption and Communities, where we believe we can make a real difference.

As a responsible and reputable beverage company operating in Indonesia, we have a responsibility to contribute to building a better and more prosperous society, by using resources sustainably, minimising any negative impacts of our operations on the environment and the communities around our business operations, and having a positive impact on our stakeholders, including our employees, our customers, business partners and the wider community. We believe that fulfilling these responsibilities is essential for the long-term growth of the business and drive the transformation, that can bring us closer to our vision, and that is to WOW Indonesia with our Brands, People and Performance.

In 2014, Multi Bintang embarked upon a transformation that has seen us change our mission from being a primarily a ‘brewer’ to being a fully-fledged beverage company, driving us to innovate with our operations and product portfolios of both alcoholic and non-alcoholic beverages. The transformation also led us to build a dedicated non-alcoholic beverage plant in Sampang Agung in 2014 to support our ambitions in this category, and the new plant became fully operational in 2015.

In spite of the restrictions on product availability, we see exciting prospects ahead. Consumers are finding new ways and new occasions to enjoy both beer and non-alcoholic beverages, and in line with our new company’s mission we have a strong pipeline


Sustainability Report 2015 PT. MULTI BINTANG INDONESIA TBKSustainability Report 2015 PT. MULTI BINTANG INDONESIA TBK

8 9

First established as Nederlandsch-Indische Bierbrouwerijen in Medan in 1929, the company began its commercial operations on 21 November 1931 in Surabaya.

The company was renamed PT Perusahaan Bir Indonesia.

1972

1981

2014

Launching of Bintang Radler.

Inauguration of non-alcoholic Beverages Plant in Sampang Agung.

1931

ABOUT US

Multi Bintang, has grown in strength to become a reputable and responsible public listed beverage company in Indonesia with a portfolio of leading beer and non-alcoholic beer/beverage brands, and a proud history of 85 years in Indonesia. Multi Bintang is synonymous with Bintang beer, the iconic beer brand of Indonesia. Multi Bintang also produces and markets7 Heineken® (No. 1 International premium beer in the world), low alcohol Bintang Radler (Lemon and Grapefruit), and non-alcoholic beverage Bintang Radler 0.0%, Bintang Zero 0.0%, Green Sands and Fayrouz in

SHaREHOLdERS NuMBER Of SHaRES IN% PaR vaLuE (IN RP MILLION)

Heineken International BV 1,723,151,000 81.78% 17,232

Public 383,849,000 18.22% 3,838

2,107,000,000 100.00 21,070

None of the commissioners or directors holds shares in the Company and its subsidiary.

Indonesia. We have two breweries (Tangerang, Banten and Sampang Agung8, Mojokerto, East Java) and a non-alcoholic beverage plant that is located next to our brewery in Sampang Agung. Multi Bintang through its subsidiary, PT Multi Bintang Indonesia Niaga, has established an extensive sales and marketing footprint across all major Indonesian cities, spanning from Medan in North Sumatra to Jayapura in Papua9. We are a proud organization of 475 members and in 2015 we welcomed 36 new full-time and part-time employees of Multi Bintang10.

18.22%PuBLIC

81.78%HEINEkEN

INTERNaTIONaLBv

The Company went public listed on the Jakarta Stock Exchange and Surabaya Stock Exchange as PT Multi Bintang Indonesia Tbk11.

1997

Relocated brewing operations in Surabaya to Sampang Agung where a new brewery was built.

2013

Heineken International B.V returned as the major shareholder of PT Multi Bintang Indonesia Tbk12 13 14.

Tangerang Brewery completed its technical upgrade.

12 Heineken International B.V. is referred as HEINEKEN or HEINEKEN Company throughout this report.

OUR MILESTONES

2015

New Corporate Identity launch.

Multi Bintang launched a new variant of Bintang Radler, Bintang Radler Grapefruit.



10 11

FINANCIAL PERFORMANCE

* Before the impact of one time charge of exceptional item (excise penalty)

OPERaTING PROfIT

Decreased from Rp 1,146 billion in FY 2014 to Rp 940 billion in FY 2015 .

-18%NET SaLES

Decreased from Rp 2,988 billion in FY 2014 to Rp 2,696 billion in FY 2015.

-10%TOTaL aSSETS

Decreased from Rp 2,231 billion in FY 2014 to Rp 2,101 billion in FY 2015.

5.8%

* Before the impact of one time charge of exceptional item (excise penalty)

** Effective as of November 6, 2014, the Company's shares traded at a new nominal value (stock split from Rp1,000 to Rp10)

FINANCIAL hIGhLIGhT

Operating Profit before the impact of one time charge of exceptional item (excise penalty)

Net Income for the year before the impact of one time charge of exceptional item (excise penalty)940,163 662,369

Our results were significantly impacted in the first half by the issuance, in mid-January, of the Minister of Trade’s Regulation No. 6/2015 ruling the ban of beer sale in minimarkets and various other retail outlets, which significantly cut our distribution channels. The impact of the ban was compounded by overall weak consumer demand resulting from the ongoing slowdown in Indonesia’s economy15.

However, the Company rebounded from a significant setback during 2015 and closed the year well positioned for future growth. We revised our yearend net earnings projection down and

ensure good revenue management, cost leadership program and growth through new product innovation. We also rebuild the business by intensifying our focus beer selling on other available outlets, including bars, cafes and restaurants.

We began to see positive signs in the second half, driven by a change in consumer behaviour and the evolution of the market as it adapted to the new situation. At the same time, consumer purchasing power improved as the pace of Indonesia’s investment program began to pick up.

497

NET SaLES(in billion rupiah)

2015 2,696

2014 2,988

2013 2,713

2012 3,562

2011 3,052

OPERaTIONaL PROfIT(in billion rupiah)

2015 719 940*

2014 1,146

2013 1,117

2012 1,525

2011 1,278

(in billion rupiah)

BaSIC EaRNING PER SHaRE

2015 236**

2014 377**

2013 41,091

2012 55,576

2011 46,017

NET INCOME Of THE YEaR(in billion rupiah)

2015 497 662*

2014 795

2013 866

2012 1,171

2011 970

AChIEVEMENTS

Heineken®’s Take The Stage was named one of the 10 Best Digital Brand Campaigns of 2015 by Mix Magazine.

fEBRuaRYMulti Bintang’s Innovation Team won first place in the 2015 HEINEKEN Innovation Challenge, Asia Pacific region.

MaRCHMulti Bintang was ranked 15th in the SWA 100: Indonesia’s Best Public Companies (Overall) 2014 at the Wealth Added Creator Awards 2014 held by SWA Magazine.

JuLY

Bir Bintang achieved a ranking of 28 in the Most Valuable Indonesian Brands 2015 by Brand Finance, an international brand evaluation and rating institution, and SWA Magazine.

OCTOBERHeineken®’s Champion the Match was named among the top 5 in Indonesia’s Most Experiential Brand Activations 2015, Best Community Event category, by Mix Magazine.

Bir Bintang’s Cheers Bangga Indonesia Digital Activation, which was launched to commemorate Indonesia’s 70th anniversary, won the Bronze Award in the Digital Category at the 2015 Citra Awards.

NOvEMBER


Multi Bintang received penalties Rp 221 Bilions administrative errors (for the period November 2010 – May 2014) from Directorate General of Customs and Excise. These administrative errors do not relate to the short payment of excise taxes, which Multi Bintang has always paid in full and on time. An Appeal Letter has submitted, Management is confident that the Company’s position is strong and it is probable that the Company will recover the amount55.


12

ABOUT SUSTAINABILITy REPORTING

Governance16

At Multi Bintang, all sustainability initiatives are reported and reviewed by the President Director of Multi Bintang as the Chairman of the Multi Bintang’s Sustainability Committee. The progress of the company’s sustainability agenda is recorded by the Corporate Communications and Sustainability Manager as the Sustainability Coordinator.

Multi Bintang’s Sustainability progress is also monitored by HEINEKEN Global Executive Team, chaired by the CEO from HEINEKEN N.V. (where Multi Bintang is part of its operating companies) as the highest governing sustainability body and a dedicated Global Sustainable Development Team. Previously, the HEINEKEN Regional Sustainability Steering Committee was the highest body of governance.

s

13

audITEd audITEd uNaudITEd audITEd uNaudITEd

IN RUPIAh MILLION

Jan 2015 –

Dec 2015

Jan 2014 –

Dec 2014

Jan 2013 –

Dec 2013

Oct 2012 –

Dec 2013

Oct 2011 –

Dec 2012

12 months 12 months 12 months 15 months 15 months

Net Sales 2,696,318 2,988,501 2,713,027 3,561,989 3,052,031

Gross Profit 1,561,413 1,805,922 1,727,815 2,283,604 1,905,763

Operating Profit 719,548 1,146,368 1,116,763 1,524,924 1,278,060

Operating Profit, before the impact of one time charge of exceptional

item (excise penalty)940,163 - - - -

Profit Before Tax 675,572 1,078,378 1,168,350 1,576,945 1,287,653

Net Income for the Year 496,909 794,883 865,944 1,171,229 969,772

Net Income for the year before the impact of one time charge of

exceptional item (excise penalty)662,369 - - - -

Other Comprehensive Income 503,624 788,057 887,134 1,192,419 969,772

Basic earnings per share (in full Rupiah amount) 236* 377* 41,091 55,576 46,017

Net Working Capital -505,272 -772,307 -16,290 -16,290 -60,387

Total Assets 2,100,853 2,231,051 1,782,148 1,782,148 1,471,374

Total Liabilities 1,334,373 1,677,254 794,615 794,615 836,312

Total Equity 766,480 553,797 987,533 987,533 635,062

Other Comprehensive Income to Total Assets Ratio % 24% 35% 50% 67% 66%

Total Comprehensive Income to Total Equity Ratio % 66% 142% 90% 121% 153%

Current Ratio % 58% 51% 98% 98% 92%

Total Liabilities to Total Equity Ratio % 174% 303% 80%% 80% 132%

Total Liabilities to Total Assets Ratio % 64% 75% 45% 45% 57%

*Effective as of November 6, 2014,the Company’s shares traded at a new nominal value

(stock split from Rp1,000 to Rp10)

dIvIdENd

Dividend/Share (Rp) Payment Date Total Dividend (Rp)

2015Final Dividend 2014 138 19 June/June 2015 290,766,000,000

Interim Dividend 2015

2014

Final Dividend 2013 46.076 24 Juni/June 2014 970,821,320,000

Interim Dividend 2014119 (after the stock split

with ratio 1:100)

14 November/

November 2014250,733,000,000

Find more our financial data in our Annual Report 2015.

Governance Structure of Sustainability Committee in Multi Bintang



HEINEkEN CEO & Executive Team

Multi Bintang Sustainability Committee

Sustainability Coordinator(Corporate Communications & Sustainability Manager)

Supply Chain

Environment

Product Quality

Operational Safety

SustainableSourcing

Human Resources

health and Safety

EmploymentPractices

Marketing and Sales

ResponsibleMarketing

ResponsibleConsumption

ResponsibleLabelling

Corporate affairs

IndustryPartnerships

CommunityInvestments

and Philantrophy

StakeholderCommunications

Global Sustainable development Team

President director

http://www.multibintang.co.id/investor/annual-reports

14 15

BREWING a BETTER

WORLd

Sustainability Concept17

Brewing a Better World is our long-term approach to creating shared, sustainable value: for our company, for society and for the planet. It forms the basis of the sustainability priority within the company’s global strategy. Launched in 2010, Brewing a Better World focuses on key areas where we can make the biggest difference. Each of these areas is highly relevant to our day-to-day business operations, and to our stakeholders. Each focus area is underpinned by clear commitments that state our ambitions for 2020 with three-year milestones to be achieved

in 2015. Our six key focus areas are: • Protecting Water Resources• Reducing CO2 Emissions• Sourcing Sustainably• Advocating Responsible Consumption• Promoting Health and Safety• Growing with our Communities

We continuously consider the sustainability of

each step with respect to our key focus areas, some

highlights:

• Sourcing: Our main raw materials are barley

and hops. We work with farmers worldwide to

sustainably grow raw materials, like barley and

hops, needed to brew our beers.

• Brewing and non-alcoholic beverage

production: Each of these processes consumes

energy and water. Reducing energy and water

consumption means increasing energy and

water efficiency and switching to other more

environmentally friendly energy sources where

feasible. Energy and water reduction is achieved

by optimising the production processes.

Each brewery and non-alcoholic beverage

production site has a specific target and we

have an interactive system that allows us to

share good practices between them.

• Packaging: The majority of our beer is

served in bottles, cans and kegs. We are

constantly looking to innovate, finding ways

to optimise the production of our packaging

materials, such as light-weighting and

increasing the recycling and re-use rate.

• Distributing: All our products need to

be transported to our customers using

several modes of transport, including road

and ocean freight. Wherever we can, we

optimise the distribution by changing the

form of transport, training drivers, using

more efficient engines, and re-assessment

of distribution networks.

• Cooling: Most of our beers are consumed

cold and thus cooled at the point of

consumption via fridges (beer in bottles,

cans or smaller kegs) or draught equipment

(for beer in kegs). For new fridges purchased

by us, we have defined green standards

with which they have to comply. Each year

the standards are adjusted to ensure that

we continue to progress towards our 2020

goals.

• Responsible consumption: In our

responsible consumption advocacy, we

consistently communicate to our internal

and external stakeholders that our beer are

accessible only to consumers of the legal

drinking age (21+) and sold/served in a

responsible way which includes the retailers

are fully licensed and apply a strict ID check

procedure.

• Growing with our Communities:

Growing with communities underlines our

ambition to have a positive impact in the

communities where we live, work and sell

our products. The biggest contribution we

make to communities is through the positive

impact of our business itself: creating

jobs, providing business to suppliers and

paying taxes that support local and national

economy.

The way forward: 2016-2018 and beyond

In this report we document our progress against

the three-year milestones we communicated for

2015. In order to meet our 2020 commitments,

we have created concrete new milestones for

2018. We will report our progress towards these

milestones each year in our Sustainability Report.

We have also started to review our sustainability

strategy beyond 2020, based on our stakeholder

dialogue and materiality analysis.



1716

Materiality

The content of the report is directly linked to the Brewing a Better World strategy, our six focus areas and the 2020 commitments. Objectives and policies did not change compared with the 2014 Sustainability Report21. We have simplified the categorisation of our materiality matrix based on an ongoing dialogue with our stakeholders, benchmark results and internal risk analysis22. In this 2015 report, we continue to use our 2014 materiality matrix that was formulated through an internal materiality assessment workshop with senior management on significant issues. In the future, we plan to directly involve external stakeholders in the materiality assessment workshop.

The top three clusters mentioned were:1. Product Safety, Quality and Hygiene2. Responsible Consumption (including staff

alcohol responsibility and responsible marketing)3. Stakeholder Communications

Materiality Matrix20: (Top priority to least)1. Product safety, quality and hygiene (including

transparent ingredient information)2. Responsible Consumption (including staff

alcohol responsibility and responsible marketing)3. Stakeholder communications4. Governance and Business Conduct5. Regulatory compliance and excise6. Community development and investment7. Employment Practices (including training and

development and employee engagement)8. Public policy advocacy9. Energy and Carbon Footprint10. Occupational Health and Safety11. Product innovation12. Economic impact13. Waste Management14. Water Management15. Sourcing Sustainably

Our Value Chain18 19

We focus on key areas where we and our stakeholders believe we can make the biggest difference. These are underpinned by our values and behaviours. Our approach to sustainability covers the entire value chain From Barley to Bar. It means that from the point at which the barley and hops are planted through to the point at which the consumer has enjoyed their beverage and disposed of the packaging, we have considered how to improve the sustainability of each step.


Current or Potential Impact on HEINEKEN

Imp

ort

ance

to

Sta

keh

old

ers

1

3

4

2

56

7

8

9

10

1112

13

14

15

Agriculture Malting Brewing Packaging Distribution CustomerFocus Area Consumer

Advocating Responsible Consumption

Promoting Health and Safety

Growing with Communities

Values and Behavior

Sourcing Sustainability

Protecting Our Water Resoucres

Reducing CO2 Emissions


PaCkaGING

aGRICuLTuRE

EMPLOYEES

dISTRIBuTIONCuSTOMERS

CONSuMERS

BaRLEY

MaRkET

COMMuNITIES

WaTERHOP

fLOWER YEaST

RaW MaTERIaLS Of BEER

BREWING & PROduCTION

FROM BARLEy TO BAR23

18

19

Our 475 employees enjoy the benefits and rewards – pay, training, healthcare, career opportunities – their hard work deserves. Our Employees follow the Global Code of Conduct Policy that guides us all to act according to our core values. The annual employee ‘Climate’ survey tracks engagement levels and helps us to identify actions required for areas of improvement.

We buy our raw materials from business partners who have signed our Supplier Code. We operate 2 breweries and 1 non-alcoholic beverage plant where continuous improvement on our energy and water consumption is focused on efficiency and switching to other more environmentally friendly energy sources where feasible. Each production site has a specific target and we have an interactive system that allows us to share good practices between them.


We source our raw materials like barley and hops from global farmers within HEINEKEN Supplier network. HEINEKEN work with the farmers to sustainably grow it crops.

We are constantly looking to innovate and find ways to optimise the production of our packaging materials (bottles, cans, kegs and cartons for secondary packaging), such as light-weighting and increasing the recycling and re-use rate.

Our products are available across the Indonesian archipelago and also exported to some market overseas. We optimise the distribution by changing the form of transportation, training drivers on road safety, using more efficient engines, and reassessing our distribution networks to ensure a safe, efficient and timely delivery.

Millions of retailers serve a selection of our brands. New fridges purchased must meet HEINEKEN green standards. We work in partnership with our retailers to ensure our products are only sold to consumers of legal drinking age.

Growing with communities underlines our ambition to have a positive impact in the communities where we live, work and sell our products through job creation, providing business to suppliers and paying taxes that support local and national economy.

Consumers are the core of our business. We continue to meet changing consumer taste and provide them with choice of products through innovation. We develop new beer category such as low alcohol beer, near beer and non-alcoholic beverages. We consistently advocate responsible consumption through our brands and joint partnerships with our industry peers and retailers on legal drinking age (21+ campaign).


2120

OUR COMMITMENTS & whAT wE hAVE DONE

2015 Global Milestones

2015 Multi Bintang Results

Indicators2018

Milestone2020

CommitmentFocus Area

Reduce specific water consumption in breweries to 3.9 hl/hl A1

Achieved 3,9 hl/hl average for 2 breweries

Reduce specific water consumption in our breweries to 3.6 hl/hl A1

3.3 hl/hl on average for 2 of our breweries located in water-scarce and water-distressed areas

100% of our production units A2 (breweries) in water-scarce and water- distressed areas have a Source Water Protection Plan

Achieved 2 of our production facilities have completed Source Water Vulnerability Assessment and developed Source Water Protection Plan for each gacility. However, the water balancing initiative will only be carried out in 2016.

2 of our breweries A2

in water-scarce and water- distressedareas have started to implementaction plan forWater Balancing

Aim for significantwater compensation/balancing by ourbreweries in water-scarce and water-distressed areas (including Tangerang and Sampang AgungBrewery).

Reduce CO2 emissions in production by 11.8% (resulting in 6.7 kg CO2-eq/hl) A1

Not Achieved12.5 kgCO2-eq/hlIncrease 13.6% in CO2 emission

Reduce CO2 emissions in production by37% A1 (resulting in6.5 kg CO2-eq/hl)

Reduce CO2 emissionsin production by 40% A1

Reduce the CO2 emissions of fridges by 42% A4

Partly Achieved42.3% Green Fridges in the system and purchased.

100% green fridges purchased; Reduce the CO2 emissions of our fridges by 47% A4

Reduce the CO2emissions of ourfridges by 50% A4

Four-step Supplier Code Procedures operationalwithin all OpCos B1

95% compliance with four-step Supplier Code Procedure

Ongoing compliance with Supplier Code Procedure

Every market in scopeB2

has a partnership to address alcohol-related harm.

AchievedWe have a partnership in place to address alcohol-related harm. Report publicly

on a measurable partnership aimed at addressing alcohol abuse

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

All partnerships meet HEINEKEN’s seven-point partnership criteria

AchievedAll of our partners comply with HEINEKEN’s seven-point a partnership

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

On TrackN/A

Deliver global industry commitments by end of 2017 and report in 2018

N/A

A 10% year-on-year reduction for the accident frequency

Achieved Decreasing 100%

Report incidents i.e. near miss in production units

Achieved All near miss cases reported in all function.

Report completion of e-learning Modules on health and safety

Achieved 100% reported

Sales personnel to have received road safety training (Defense Driving)

Achieved100% Trained

Zero accident

2015 Global Milestones

2015 Multi Bintang Results Indicators

2018 Milestone

2020 CommitmentFocus Area

N/A

N/A

N/A

N/A


On Track100% of our listed suppliers signed The Supplier Code


A1 Baseline 2008. A2 Twenty-three production units. A3 Baseline 2010/2011, scope is Europe and Americas, 24 of our largest operations: Belgium, Bulgaria, France, Ireland, Italy, Netherlands, Portugal, Spain, Switzerland, UK, Austria, Belarus, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Brazil, Mexico, USA. Scope represents 80% of volumes traded for total scope in Appendix 3. HEINEKEN Asia Pacific is not in scope of the 2015 commitment as the business was not consolidated at the time the commitment was made. A4 Baseline 2010.

B1 HEINEKEN Asia Pacific is not in scope of the 2015 commitment as the business was not consolidated at the time the commitment was made. They are in the process of becoming compliant in the coming years. B2 The 50 operating companies, which cover 48 markets, include all HEINEKEN markets except Islamic countries, markets where we have a Joint Venture and three minimal-volume markets for who allocating resource is unrealistic (Laos, Solomon Islands and Sri Lanka).

On Track Not AchievedPartly AchievedAchieved On Track Not AchievedPartly AchievedAchieved

22 23

CREATING ECONOMIC & SOCIAL IMPACT

Economic Impact Study of Alcohol Industry (CSIS, 2015)26

In 2015, the Indonesian Brewers Association known as Grup Industri Minuman Malt Indonesia (GIMMI) commissioned an economic impact study on Alcohol Industry in Indonesia that was carried out by the Center for Strategic and International Studies (CSIS) in 2015. The study identifies direct and indirect economic impact of the industry that covers employment and output created and government revenues.

l

STAKEhOLDER ENGAGEMENT & COMMUNICATIONS

Our internal and external stakeholders are vital to our business and contribute to each stage of our value chain. We appreciate the importance of stakeholder relationships, we also try to understand the interest and needs of our stakeholders and work together to identify and find solutions to any material issues. Considering alcohol may come as a sensitive topic of discussion, our decision to engage

specific stakeholder group is determined by our close assessment on past engagement and topics or issues of relevance to them. We regularly update our stakeholder contacts and maintain a constant dialogue with them about our sustainability strategy and actions. This keeps us focused and lets us know where they see an opportunity for us to do more27.

Domestic Alcohol Industry

Multiplier Effect to Other Industries

Rp. 21,82 Trillion(0.11% GDP)

Respective sectors impacted(Manufacture, Agriculture, Trade Services)

128,230people(0.11%)

Indirect Employment(Agriculture, Trade Services, Hospitality, Tourism)

Rp. 11.51 Trillion

National Output(including Rp. 5.69 Trilion from Alcohol Beverage Industry)

Rp. 27 BillionFrom restaurant services

Rp. 26 BillionFrom hotel services

0.03%Total Production Output

7,990people(0.008%)

Direct Employment

Rp. 6 TrillionExercise in 2015



2524

Topic of discussion29

Topic of discussion

How We Engage Them30

How We Engage Them

Stakeholders28 Stakeholders

• Responsible consumption • Business practice and compliance• Alcohol policy advocacy

• Formal letters• Scheduled meetings• Partnership

GOvERNMENT

• HEINEKEN supplier code • Environment • Continuous dialogue

SuPPLIERS

• Community investment and development

• Responsible consumption• Environment• Sustainable business operations

• Continuous dialogue• Scheduled meetings• Partnership• Formal lettersLOCaL aNd

INTERNaTIONaL NGO

• Business performance• Brands and innovation• Responsible consumption• Sustainable business practice• Alcohol policy advocacy

• Media visits• Brewery visits• Press conferences • Press releases • Exclusive InterviewsMEdIa

• Code of business conduct • Business performance and strategic

direction• Sustainable business practice• Company’s reputation and positive

stories about company and beer category

• Town hall meetings• Bulletin board messages • Employee engagement

opportunities • Speaking engagement

opportunities for employee ambassadors

EMPLOYEES

• Brand leadership • Company’s reputation and positive

stories about company and beer category• Responsible consumption

• Market insights studies/surveys• Product trial programs• Brand activation programs and

campaigns• Social media engagementCONSuMERS

• Responsible consumption• Alcohol policy advocacy• Industry best practices • Code of business conduct andself-

regulatory code

• Scheduled meetings• Joint programs / campaigns /

partnerships• Continuous dialogueINduSTRY

aSSOCIaTIONS

• Labor working agreement• Labor best practice• Business performance and strategic

direction• Sustainable business practice• Company’s reputation and positive

stories about company and beer category

• Scheduled meeting• Continuous dialogue

LaBORuNION

• Responsible consumption / alcohol retailing / legal Drinking Age

• Self-regulatory code• Alcohol policy advocacy


partnerships direct and through industry association

• Continuous dialogue• Formal letters• Brewery visits

CuSTOMERS & CONSuMERS

• Responsible consumption• Alcohol policy advocacy• Company’s reputation and positive

stories about company and beer category• Sustainable business practice• Brands and innovation• Community investment and

development


partnerships direct and through industry association

• Continuous dialogue• Formal letters• Social media engagement• Brewery visits

COMMuNITIES



2726

STAKEhOLDER ENGAGEMENT ACTIVITIES

Multi Bintang’s meeting with the Minister

of Trade on Responsible Consumption

agenda

In April 2015, a Multi Bintang and HEINEKEN’s delegation met with the former Minister of Trade, Rachmat Gobel, on a sideline meeting during the World Economic Forum on East Asia (WEF-EA) in Jakarta. Multi Bintang was represented by our President Commissioner Cosmas Batubara, President Director, Michael Chin and Corporate Affairs Director, Bambang Britono, while HEINEKEN was represented by the Global Director Public and Governmental Affairs, Roland Verstappen. During the meeting we discussed a number of issues including our stance on responsible consumption and underage drinking issue. We believed it was important for us to share our thoughts and our concerns about responsible consumption topic to the minister particularly after the issuance of Ministry of Trade Regulation No. 6 on 16 January 2015 that effectively restricts or bans the sales of beer in minimarkets31.

As part of our transparency effort, we published a number of take away points and results of the meeting to the media:

1. We stated to the Minister of Trade that it is part of Multi Bintang and HEINEKEN’s policy to protect the underage from consuming alcohol. • We are part of Global Alcohol Producers

Commitment Signatories (www.producerscommitments.org) and apply very strict rules about how to market and sell our beer products including preventing under-age drinking.

• HEINEKEN has many programs in place around the world to achieve this and Multi Bintang has the same in Indonesia.

• Multi Bintang has worked together with a large number of minimart operators to train their staff to make sure they do not sell to people below the legal drinking age (21+ Awareness program - legal drinking age and ID check procedure). Since 2012, approximately 1000 outlets and 15000 staff participated in the program. Moreover we also trained hotel, restaurant and café staffers making sure they only sell our products in a responsible manner.

2. During the meeting, the Minister of Trade, Rachmat Gobel, agreed to continue our dialogue by forming a joint working group consisting of the Ministry of Trade and the beer Industry aimed at finding alternative solutions and programs to prevent underage drinking.

Throughout the year of 2015 we continue to establish dialogue with multiple stakeholders including the Government, brewers association, other alcohol producers association, retailers association, hotel and restaurant association, consumer groups and members of civil society groups to discuss about responsible consumption and issues with alcohol misuse, alcohol related harm, problems with widespread bootleg alcohol issue (methanol mix), as well as the most appropriate alcohol policy for Indonesia context. In the coming years, we will continue the dialogue and work hand-in-hand with our stakeholders to provide more effective solutions to address concerns of underage consumption and alcohol policy in general.

Improved Employee Engagement Rate

in 2015 Climate Survey and awarded an

Indonesia Human Capital award 2016

Multi Bintang conducts Internal Climate Survey on annual basis as our effort to create a better working environment for our people. With the support of IBM, the survey is done electronically to reach most of our employees. Compare to 2014, the participant rate increased from 93% to 96%. From the survey, we discovered three key priorities for improvements which include My Manager, Cooperation and Teamwork and Personal Development. In the 2015 Climate Survey, the Employee Engagement Index has also increased from 78% to 80%. As a follow up to the survey, a continuous dialogue with employees will be carried out to ensure positive improvements.

Our consistent efforts to make a great working environment allow us to be acknowledged as one of the top listed companies (from 100 participating companies) with the best practices in human capital strategies by the Indonesia Human Capital Award (IHCA). The award was organised by IPMI International Business School, Economic Review (magazine) and NBO Indonesia (an HR management consultant).

Beer-B-Q with Beer Enthusiast

Community, food Bloggers and Media

Despite the long history of beer on earth and in Indonesia, beer as a low alcohol beverage (below 5%) and its brewing process are largely unfamiliar amongst Indonesian public. One of our key communications objectives in 2015 was to engage the wider community about beer. Following the launch of our low alcohol (2%) Bintang Radler Lemon, we took the opportunity to engage our stakeholders and share more information and interesting facts about beer starting from its historical origin, what is beer and how it is brewed. In April 2015, we invited 60 people from the media, beer enthusiasts, culinary experts and food critiques, bloggers and Instagram celebrities to engage with our brands and experience new beer occasions in an event called Beer-B-Q. The participants were able to learn about beer directly from our brewers, visit our brewery and enjoy fresh beer that is paired with barbequed food prepared by two renowned Indonesian chef.



http://www.producerscommitments.org/

http://www.producerscommitments.org/

28 29

Roadshow to Media Headquarters during

Oktoberfest

During the period of the Oktoberfest, we organised a series of roadshow to five national media headquarters (Harian Kontan, Harian Kompas, The Jakarta Post, Kompas.com and Antara) based in Jakarta to share knowledge about beer and alcohol in general, The Magic of Brewing, and responsible consumption (the right attitude towards alcohol) presented by our Multi Bintang Ambassadors. The visits were positively accepted in five different locations and attended by a total of 123 media personnel. They also had the chance to learn about beer tapping technique from draught beer team and enjoy beer paired with food. Our visits were also highly appreciated by the editors, particularly for our openness and willingness to share information about our product, business and industry, despite the sensitivity of being in a market where information about our alcoholic products are limited in public domain.

visit from anti-Bootlegging Community

In October 2015, Our Sampang Agung brewery hosted a visit from Komunitas Masyarakat Anti Oplosan (Anti-Bootlegging Community) from Mojokerto and Surabaya. The community is particularly interested in learning more about beer, a low alcohol beverage under 5%, produced with high quality standard and license from the government. During visit, the community also had the opportunity to exchange knowledge with our 50 employees about their studies and findings about bootleg alcohol known as oplosan. Bootleg alcohol is produced and sold illegally using non-food grade materials, including methanol that can be fatal and have serious impact to health. Such engagement and exposure with a civil group broadens the company’s and employees’ perspective toward the complexity of issues, business and reputation challenges faced by legitimate alcohol industry, as a result of lack of information and misinformed consumers and public about alcohol. Multi Bintang sees this as an opportunity to be at the fore front on responsible consumption advocacy and public education on alcohol.

PARTNERShIP & MEMBERShIPS ON ThE SPOTLIGhT

THE INdONESIaN BREWING INduSTRY aSSOCIaTION, GIMMI32

Profile and Mission

Grup Industri Minuman Malt Indonesia (GIMMI) was established in 2000 where Multi Bintang was one of the co-founders and active members. As per December 2015, GIMMI has three brewers namely PT Multi Bintang Indonesia Tbk, PT Delta Djakarta Tbk and PT Bali Hai and one brand principle/owner (PT Gita Swara) as its members.

The industry association helps members to collectively establish dialogue with our multiple stakeholders on industry road map, alcohol policy advocacy, industry code of business conduct and responsible consumption.

Latest action

In 2015, Multi Bintang has engaged the rest of GIMMI members to participate and support our partnership program on advocating responsible retailing program (21+ Campaign) with Carrefour as modern off trade retailer/hypermarket operator. The 21+ Campaign program is an initiative on responsible retailing that was started by Multi Bintang in 2012. More details about the story and progress of 21+ Campaign program, read our 2014 Sustainability Report and on page 53 of this report.

Profile and Mission

GAPMMI is the Indonesian food and beverages producers association established in April, 15th 1976. Multi Bintang is listed as a member of GAPMMI since June 2015. With more than 300 food and beverages manufacturers, GAPMMI helps its members to protect and develop their business by providing them with valuable assistance and information on multi-aspect on food business from food safety, labeling and other economic issues related to food industries.

Latest action

In June 2015, Indonesian Food and Beverages Companies Association, GAPMMI updated us about industry participation opportunity to address our final feedback on the draft of Indonesian National Standardisation (SNI) for beer category at the Consensus SNI Technical Meeting, organised by the Ministry of Industry. Multi Bintang participated in the meeting and shared our inputs as a beer industry member.

INdONESIaN fOOd aNd BEvERaGES COMPaNIES aSSOCIaTION, GaPMMI33



http://www.multibintang.co.id/sustainability/our-strategy-focus/sustainability-report

3130

of our key pillars within the TPM is the Focus Improvement Pillar, which includes looking into the possible reduction of water and energy consumption through process modification, new methodology and technology.

For Brewery Tangerang, we use two water sources, which are Tirta Benteng Tangerang City Water Company (PDAM Tirta Benteng Kota Tangerang) and Tirta Kerta Raharja Tangerang Regency Water Company (PDAM Tirta Kerta Raharja Kabupaten Tangerang) with a total of 311.537 m3. As for Sampang Agung Brewery, we use two water resources, which include the Mojokerto PDAM and a deep well with a total of 371.607m3 for 201534.

In 2015, we have not used any recycled and reused water. However, we will explore a project on this in 201635.

PROTECTING OUR wATER RESOURCES

30

OUR 2020 COMMITMENTS

Reduce specific water

consumption by 25% and

achieve 3.3 hl/hl on average

in our 2 breweries

Protect our water resources

in our 2 breweries located

in water scarce and water

distressed areas

Aim for significant water

balancing in these areas

For more information on our water priorities and

why this is important, visit our website.

In February 2015, Multi Bintang’s parent company, HEINEKEN entered into a partnership with the United Nations Industrial Development Organization (UNIDO). UNIDO will act as an independent broker, bringing together key stakeholders and helping operating companies like Multi Bintang to develop Public-Private Partnerships where relevant. UNIDO will facilitate a jointly organised three-day stakeholder engagement workshops to develop a shared vision on the most important water issues and on collective efforts needed to redress them. Multi Bintang’s two production sites are in scope for partnership with UNIDO to mobilise stakeholders on shared water issues. The workshops in two sites are scheduled to take place in 2016.

31

STakEHOLdER WORkSHOP ON WaTER

REduCING WaTER CONSuMPTION IN OuR BREWERIES

water is a scarce and shared resource vital to well-being of the communities and ecosystems.

Both our breweries, Tangerang and Sampang Agung are considered to be in water-scarce and distressed areas.

water is the key raw material for our products i.e. beer is 90-95% water, and throughout our supply chain, including in the maintenance and growth of crops.

To ensure continuous improvement of water efficiency at both of our breweries in Tangerang and Sampang Agung, we consistently implement Total Productive Management (TPM), monitor the reduction and benchmark our water consumption with other breweries within the HEINEKEN Company. Successes of breweries within the HEINEKEN Company’s network are constantly shared as best practices. One

NEW 2020 TaRGET 3.3 hl/hl

TaRGET fOR 2018

2015

2014

2013

3.6 hl/hl

3.94 hl/hl

4,06 hl/hl

4,26 hl/hl

Partnership with UNIDO to mobilise stakeholders on shared water issues.

We consistenly implement Total Productive Management (TPM) and reduce water consumption to 3.94HL/hl in 2015.



http://www.multibintang.co.id/sustainability/our-strategy-focus/water

water Balancing Project

Multi Bintang have been assessing water-related risks and focus our immediate efforts on the breweries in water-stressed areas. The two watersheds of our breweries are in the National Park of Mount Gede Pangrango (for Tangerang Brewery) and Gunung Wellirang (for our Sampang Agung Brewery). Multi Bintang is scheduled to roll out our Reforestation initiative as part of our key balancing initiative for both watersheds in 2016. The implementation will be supported by the Conservation International Indonesia and a local NGO named SEMAK (for Tangerang Brewery) and currently exploring the NGO partner for Sampang Agung.

32

wATER STEwARDShIP PROGRAM

Through our Water Stewardship Program we focus on two main objectives:

1. Water Efficiency is targeted to reduce the amount of water used for production and in the rest of our supply chain

2. Water Source Protection and Balancing is our effort to ensure water used in our operational is returned to the ecosystem after becoming end product and evaporates during production process.

water Source Protection & water Balancing

Water Source Protection is our effort to ensure water used in our operations is returned to the ecosystem in a good quality. While Water Balancing is our initiative in water scared and distressed area to compensate water, that does not return to the initial ecosystem after becoming end products and evaporates during production process.

In 2014, the assigned Water Team from each brewery have developed their Water Source Protection Plan to address specific vulnerable issues on water based on the Water Source Vulnerability Assessment (WSVA). Some actions have ta ken place in 2015 while the implementation of reforestation as our Water Balancing initiative is delayed and re-scheduled to be implemented in May 2016.

The followings are our upstream and downstream initiatives for our Water Stewardship Program in 2015:

waste water Treatment

A numbeR oF initiAtives to sustAin

AnD suPPoRt ouR cAuse

33

Upstream:

Source Protection Project

a. Sampang Agung BreweryAll employees of Sampang Agung Brewery participated in the planting of 1000 trees in Mount Welirang, the watershed of Mojokerto residence and our brewery. The program was in partnership with local surrounding communities and local NGO, Yayasan Lingkungan Hidup Seloliman.

b. Tangerang Brewery The Tangerang Brewery team updated the WSVA plan by reassessing the 2015 situation and risks where the findings shown a positive progress on water supply level relatively stable and reduce the risks to our operation. We continued to engage and establish dialogue with our key government stakeholders such as the Tangerang Environmental Office and local water company, PDAM of Tangerang, who supplies water to our brewery to obtain updated situation on water condition in Tangerang particularly on the risks of water scarcity.

water Source Protection & Balancing through

Reforestation

GLOBaL avERaGE WaTER fOOTPRINT PER PROduCT*

298 litres of waterper litre of beer

870 litres of waterper litre of wine

1,020 litres of waterper litre of milk

1,056 litres of waterper litre of coffee

108 litres of waterper litre of tea

Product

Water footprint(Global Average)

% footprint via Rainfall

85% 70% 85% 96% 82%

Our Water Stewardship Program focuses on two main objectives are Water Efficiency and Water Source Protection and Balancing.

replanted in Mount Welirang, watershed of

Mojokerto residence and our brewery.

1,000 Trees Our Reforestation initiative program will be supported by the Conservation International Indonesia and a local NGO named SEMAK (forTangerang Brewery) and currently exploring the NGO partner for Sampang Agung.

Sustainable use of water and initiative to safeguard this limited resource is critical and we have the responsibility to promote responsible water use and encourage our stakeholders as well.

water Stewardship Program as our approach for addressing water-related issues that will benefit the wider community, not just our breweries in a long term.


* Source: Water Footprint Network, Product Gallery


34

downstream : Environmental Education

Project & Biopori

a. Sampang Agung Brewery

In 2015, the Sampang Agung Water team launched a Green School Program with the aim to raise the awareness of environmental issues among schools, including students and teachers. The Green School Program was conducted in SMA Kutorejo 1, as a finalist for the Adiwiyata Program.

Adiwiyata Program is a program of Ministry of Environment targeted at junior and high schools to raise awareness and promote environmental conservation. The participating schools are expected to be involved in various initiatives and programs that promote healthy environment and reduce negative impact to the environment.

Our Green School Program includes activities such as well construction, drilling, energy and water saving campaign, create simple waste water treatment for canteen area and hydroponic. Through this partnership, SMA Kutorejo will sign up for the next Adiwiyata Program for 2016. We also engaged SMP Kutorejo 2 (junior high school) and SMA Kutorejo 1 (senior high school) to support Biopori project by making 160 biopores in the school areas.

b. Tangerang Brewery

The Biopori Program has become a great a way to engage our local communities surrounding our operations to care for the environment better. Biopori had become part of our downstream program for our Water Stewardship Program since 2014. It becomes an effective and interactive way to engage and educate our employees and surrounding communities, about the importance of protecting and preserving our water and its source. A group of our employees have become an active ambassador of the company, in expanding the reach of Biopori in both the Tangerang and Sampang Agung area. The program also received direct support from the local government, Batuceper, Tangerang. In 2015 the number of biopori holes, made throughout the year, was 1000 new biopores. To learn more about the Biopori initiative, read our 2014 Sustainability Report page 45.

35

wASTE wATER TREATMENT

Wastewater is produced as part of our brewing operations. We treated and disposed the water in line with government regulation and there was no verified environmental complaints, accidents or fines during the year36. Multi Bintang released 45.240 kgCOD/y in 2014 and 38.468 kgCOD/y of treated waste water to surface water in 2015 equals to a decrease by 15%37.

All liquid waste generated by the production process at the breweries is processed in the Waste Water Treatment Plant (WWTP). In the WWTP, there are two processes involved, namely:

1. Anaerobic Treatment. This treatment is a process that uses anaerobic bacteria to reduce the value of Chemical Oxygen Demand (COD) and Biological Oxygen Demand (BOD) up to certain values.

2. Aerobic Treatment. Waste processed in the anaerobic aerobic treatment will be processed in the form of an aeration pond where the COD and BOD values will be lowered again, until the threshold permitted i.e. COD < 100 mg / liter, BOD < 40mg / liter. In this process, the sludge will be separated from the waste water to reach Total Suspended Solid (TSS) < 40mg / liter.

To improve the performance of the WWTP in 2015, we optimised the use of calamity as a buffer tank waste water, to contain waste that exceeds the standard design to be processed in the WWTP (high temperature, low pH, COD, beer reject). This is intended to ensure the WWTP can be run without any interruptions caused by temperature is too high or too low pH. The operation of the

WWTP is supported by a specialist that remotely manages the WWTP and provides advice in case of any problem and/or potential improvement. We recorded no issue related to the WWTP in 2015. The monitoring of the waste water quality (pH, COD, TSS) at the WWTP is conducted by internal team on daily basis and by external Lab and Lab Technician on monthly basis. We report our waste water quality to the Tangerang and Mojokerto Environment office of the Ministry of Environment every 3 months.

During 2015, the results of the water balance were always appropriate standard (1.5 hl / hl) and became one of our achievement in 2015. The Water Balance of the WWTP is the ratio of the amount of waste water, treated with water used for production / brewery.

Plan for Improvement in 2016

• The waste gutter and calamity tank will be rearranged in order to conform to the regulations and the capacity of wastewater from production.

• The Fish Pond is used as a visual indicator that the waste water treated at the WWTP, is in conformity with the regulations and fish can live in wastewater after being processed at the WWTP.

• The utilisation of methane, generated from anaerobic processes, for combustion in the boiler after going through the screening process and drying.

• The re-used effluent water for reuse in the process, which is not directly related to the product, after going through the filtration process.

“Community awareness and care for the environment particularly the importance of water can be raised

through initiatives like biopori program. Involvement and support of local government and active participation

of families as well as youth organisations in the city of Tangerang will have a greater impact to the

environment conservation” Agus Sugiarto, employee ambassador and Engineering Team, Tangerang Brewery.

20 employee ambassadors and nearly more

than 100 people from surrounding communities

participated in the Biopori program and water

conservation and management initiatives.

In 2015 the number of biopori

holes, made throughout the year,

was 1000 new biopores.





36

BREwERIES' ByPRODUCT: SPENT GRAIN

Spent grain is the leftover malt after the mash has extracted most of the sugars, proteins and nutrients. In general, this can constitute as much as 85% of a brewery’s total by-product, which can be reused. This by-product still contains high protein, fiber and vitamin content which is the best re-used as animal feed39.

Approximately 94% of brewers’ spent grain is recycled as animal feed. Some other viable options are the use of this brewery’s by-product for the agriculture sector in a form of compost fertilizer, biomass and also an ingredient for food manufacturing.

We take a similar approach to our 15,870 tons of spent grain produced in our breweries in 201540. Some of these by-products are sold to a dairy and cheese producer, in Malang, East Java, producer and local kettle farmers for kettle feed. We also sell our spent grain to a local village cooperatives, as part of our community investment initiative. By doing so, the kettle farmers can save up the cost for livestock feed. A smaller portion goes to small holder farmers to be made compost fertilizers for their agriculture plot of land. These alternative uses of spent grain demonstrates our commitment to sustainability, which has a direct impact, not only to our products and business operations, but also to our neighboring communities.

There has been a drop in quantity of spent grain sold in 2015 compared to 2014, due to drop in sales of beer by approximately 30% following the ministerial regulation restricting the sales of beer in minimarkets, which immediately affects our production.

• The modification of the aeration system, the process which injects oxygen into the water, by using the surface aerator as a fine bubble diffuser aeration system, which will improve the quality and reduction / saving of electricity consumption.

In 2015, Tangerang Brewery was awarded a blue rating in the Company’s Environmental Performance Rating Program (PROPER)38 held by the Ministry of the Environment of the Republic of Indonesia for compliance on Safety, Health, and Environmental Management Systems. The blue rating is awarded to companies which have shown efforts to manage the environment, where they operate as required according to the laws and regulations. In the coming years, we aim to enrich our brewery’s PROPER reporting to the local environmental office, in order to improve our rating to green, awarded to the company that has shown beyond compliance efforts for its environmental management. This includes continuous improvement, efficient use of resources through 4R - reduce, reuse, recycle and recovery - and community development initiatives.

94% of brewers’ grain is

recycled as animal feed

of spent grain are use for the agriculture sector in a form of compost fertilizer, biomass and also an ingredient for food manufacturing.

15,870 Tons

37

TOTaL QuaNTITY Of SPENT GRaIN SOLd

BIOPORI

2013

2014

2015

2012 150 holes

1000 holes

440 holes

510 holes

Biopori is a process of creating by man-made holes that are built into a certain depth (1 meter) underground to improve rain fall absorption.

This hole contribute to ground water protection and flood control in urban cities.

38 Regulated in Ministry of Environment Regulation No. 5 Year 2011 about

PROPER Environmental Performance Rating Guidelines.

Efficient use of resources through 4R

- Reduce, Reuse, Recycle and Recovery

and community development initiatives.

A drop in quantity of spent grain sold in 2015 due to

drop in sales of beer by approximately 30% following

the ministerial regulation restricting the sales of beer in

minimarkets.

21,368,630 kg

25,562,960 kg

2014

2013

2015 15,870,370 kg


Tangerang Brewery

Sampang agungBrewery

BREWERY & NaB PLaNT

Sampang agung NaB Plant

Java ISLaNd


REDUCING OUR CO2 EMISSIONS

38

Reduce co2 emissions in

production by 40%Reduce the co2 emissions of

our fridges by 50%


For more information on our co2 priorities and

why this is important, visit our website.

39

CO2 emissions directly contribute to climate change and has an impact on the availability and cost of raw materials and other resources. As a corporate citizen, we decided to play an active role in reducing CO2 emissions across our value chain from Barley to Bar. Our biggest CO2 emissions come from the use of boilers, electricity, freon refrigerants, ammonia, fossil fuel and emitted gas from our Waste Water Treatment Plant (WWTP). Our commitment is reducing our CO2 emissions through (1) Energy-saving initiatives; (2) Increasing the use of renewable energy and lower-emission energy sources. Momentarily, our emission reduction initiative is still coming from energy-saving initiatives. We will explore several initiatives using renewable energy in 2016.

HEINEKEN Global has a comprehensive carbon footprint model. We adopted its calculations of our Greenhouse Gas emissions from beverage production and to better identify areas for improvement in our value chain.

CARBON FOOTpRINTS

year

2015

2014

2013

7.490.773 kg

8.909.792 kg

10.018.307 kg

13.047.320 kg

14.510.893 kg

15.149.864 kg

Specific Direct and Indirect CO2 emissionsat Breweries and Soft Drink Plant

Our direct emissions come mainly from the combustion of gas for boilers and methane in the WWTP and for our indirect emissions come from electricity consumption.

Our commitment is reducing our CO2 emissions through Energy-saving initiatives; and Increasing the use of renewable energy and lower-emission energy sources.36% Reduction in Carbon

emissions since 2008


41 42


Total volume of beverage production

Absolute direct and indirect CO2

Heineken 6.7 kg CO2 -eq/hl

If compared to Heineken N.V.average specific direct and indirect CO2 emissions:

2015 12.5 kg CO2 -eq/hl (increase of 13.6%)

Mainly due to electricity and gas consumption and lower production

2014 11.0 kg CO2 -eq/hl

Direct CO2 Emission Indirect CO2 Emission

2.087,0 khl2013

12.1 kg CO2 -eq/hl2013

2.137,1 khl2014

2015 1.640 khl (23% decrease)

http://www.multibintang.co.id/sustainability/our-strategy-focus/co2

9,5 kwh/hl

40 41

2014

Regular Fridges

Total Fridges

Hydrocarbon

741 (68%)

345 (32%)

1.086 fridges

Projection in

2016

Regular Fridges

Total Fridges

Hydrocarbon

741 (48,7% )

782 (51,3% )

1.523 fridges

300pcs

2015

57,7%

42,3%

NOT compliant to the green cooling memo

Compliant to the green cooling memoThe increase of specific thermal energy consumption

in both breweries was due to the significant drop in production volume due to destocking following minimarket ban in the beginning of 2015.

Our management plans to reduce our thermal consumption to 74.1 MJ/hl and electricity consumption to 9.6 kWh/hl. To achieve this objective, we will implement several changes for both thermal and electrical

Thermal

1. Fixing leakage on steam trap KEG Line2. Automatic Boiler Pressure Control 3. Insulation brewing Vessel HV and MT4. Replacement steam trap at bottle washer5. Repeal CO2 leak at TOP of Cellar Tank6. Jet aerator management at WWTP7. Reduce Evaporation rate Boiling (6% to 4%), continue

with reduce boiling time 75 to 60 minutes

Electrical

1. Total cleaning condenser 2. Install LED at Pack (botling, can)3. Install LED at Brewing (Brewhouse, BMF)4. NH3 Compressor Management5. Cold Room Management 6. Cleaning Stratification Tank 7. Reduce Electricity consumption at Brew Water

Pump8. Cold Insulation pipe9. Reduce Electricity at Compressed Air Plant

• Install Air Distribution pipe to Brew and cellar from Buffer Tank (Previously: Directly From Compressed Air Plant)

• Reduce compressed air pressure • Install Automatic control (solenoid valve) at air

rotary malt transfer• Install Inverter for Cooling Tower pump

Cooling is essential for the enjoyment of our beverages, but also one of largest contributor to our total carbon footprint. We buy and supply fridges, used to store, and display our beer products in supermarkets, bars and restaurants. This allows us to control the quality of the beer by setting the correct temperature, as well as the appearance of the fridge and our brands in the fridge. To reduce our emissions in this area, we focus on installing more energy-efficient fridges, to align with our parent company, HEINEKEN’s Global Fridge Policy. Green fridge uses hydrocarbon refrigerant, LED illumination, an energy management system and energy-efficient fans. In 2014, we already purchased 345 chillers and in 2015 we allocated all units to 17 areas across Indonesia, base on request. In 2015, we also ordered 437 units to be allocated in 2016 with the following 3 types of chillers.

After the first purchase, we evaluated the hydrocarbon fridges compared to regular fridges, through service requests nationwide. In 2015, we had 648 service requests, from 1.086 fridges, but only 36 units are hydrocarbon fridges. The common service requests for hydrocarbon fridges are cleaning condenser and lamp replacement, compared to regular fridges that request change in compressor. Saving energy does not just reduce our emissions, it also means our customers incur less costs in their businesses. Compare to regular fridges, Hydrocarbon fridges also use less electricity by 20%, less watt consumption, which is based on electricity bill per month, from IDR 108,600 reduced to IDR 81,000.

REDUCING CO2 EMISSIONS FROM GREEN FRIDGES

Energy & Water awareness program

1. Stop Leak Program2. Energy and Water Sticker and barner campaign3. Weekly Energy and Water Audit4. Repair broken insulation5. Repair Steam leak

100% 32% of our fridges already in the

market in 2015 are green fridges.

of our purchased fridges in 2015 are

Green Fridges, energy efficient fridges.

We source our energy from thermal (gas, solar) and electricity.

In 2015, we used 118.7 MJ/hl of energy to produce one hectoliter of our products43. Compare to 2014, we used 113.4 MJ/hl, increase from our prior year consumption by 4.7%44.

ENERGy CONSUMpTION

We used 118.7 MJ/hl of energy to

produce one hectoliter of our products.

Our management plans to reduce our thermal

consumption to 74.1 MJ/hl and electricity

consumption to 9.6 kWh/hl.


year

2015

2014

2013

118,7 Kg CO2eq/hl

113,4 Kg CO2eq/hl

125,7 Kg CO2eq/hl

Total

80,9 Kg CO2eq/hl

78,9 Kg CO2eq/hl

88,8 Kg CO2eq/hl

Thermal Energy

10,5 Kg CO2eq/hl

34,5 Kg CO2eq/hl

36,9 Kg CO2eq/hl

Electrical Energy

Total Specific Energy Consumption

2015

2014

2013

year Tangerang Brewery

129,8 MJ/hl

119,5 MJ/hl

128,7 MJ/hl

Sampang Agung Brewery

111,8 MJ/hl

101 MJ/hl

112 MJ/hl

Specific Total Energy Consumption in Both Breweries

2015

2014

2013

year Tangerang Brewery Sampang Agung Brewery

82,4 MJ/hl 79,9 MJ/hl

79,4 MJ/hl 70,3 MJ/hl

89,0 MJ/hl 77,7 MJ/hl

Specific Thermal Energy Consumption

2015

2014

2013

year Tangerang Brewery Sampang Agung Brewery

13,2 kwh/hl 8,9 kwh/hl

11,1 kwh/hl

11,0 kwh/hl

8,5 kwh/hl

Specific Electricity Consumption

16 pcs

121 pcs

300 pcs

Reducing CO2 emissions from Green fridges

SC 88

Innova 288 HC

S650 HC



42

The green glass bottles for Bintang brand, all variant in 330 ml and 620 ml size, are returnable to our breweries. The used empty bottles will be returned by the retailers or outlets to our distributors or sub-distributors. They will be then delivered together with our crates back to our breweries and will be sorted and go through a stringent cleaning process, before directed back to our packaging line. Damaged bottles will be destroyed into smaller culets and sold back to glass manufacturers to be reproduced. Culet form is preferred by glass producers, as it will help

CIRCUlAR ECONOMy – JOURNEy OF OUR GREEN BOTTlES

them to use less energy for production, and therefore translated into greater cost savings.

There is a small portion of the bottles that does not return to our breweries, due to damaged bottles or being used by small economies i.e. small businesses as alternative used packaging for their own products. On annual basis we place a relatively small investment, approximately 13-19% to replenish our stock of green glass bottles.

MaRkET

$

Returning Bottles / collected from the market

for Bintang pint

81%for Bintang bremer

87%

Quantity of Bintang bottle purchase in 2013 – 2015

2014

2015

2013 41,250,438

57,516,642

19,126,936

43

Multi Bintang uses recycled materials for the production of our cartoon paper box, aluminum cans and bottles. A recyclable logo is printed on our cartoon boxes, cans and bottles. In January 2015, Multi Bintang embarked a project called Consumer Value Engineering led by the Quality Assurance Division and in collaboration with the Marketing, Procurement Team and our suppliers. There are two main initiatives, namely:

1. Reduction of the height of cartoon box as outer packaging of the Bintang 620 ml bottles to allow the products fit better, to reduce damaged boxes when being staked up and to maximise the truck capacity during loading process. At the same time, this initiative also helped to reduce the amount of recycled paper used for producing the cartoon by removing the partitions and ultimately led to cost savings (reduction by 2%)45. By the end of 2015, the initiative has been applied to 100% cartoon boxes of Bintang 620 ml produced in Sampang Agung Brewery, and starting mid-2015, it has been partially rolled out in Tangerang Brewery. In the future, Multi Bintang will extend similar approaches and improvements to our other products. Through this initiative, we were able to reduce our paper usage by 4 %. We use 100% recycled paper for our cartoon boxes46.

2. Down gauge of all 330 ml cans to allow less use of aluminum materials. The initiative first came from our can supplier, United Can Company (UCC) who have invested on the supporting equipment. The full implementation on all can products began in September 2015 and is expected to reduce the aluminum usage by 9%.

pACKAGING INNOVATION

L: 322

W: 241

H: 285

Before

L: 315

W: 238

H: 283

after

We also collect the crates

The broken bottles are recycled

Bottle are sorted at the brewery to make

sure we only have safe and according to

standart bottle

In January 2015, Multi Bintang embarked a project called Consumer Value Engineering led

by the Quality Assurance Division and in collaboration with the Marketing, Procurement

Team and our suppliers.


47


ongoing compliance with our supplier code Procedure


SOURCING SUSTAINABLy

44

For more information on our sustainable sourcing priorities

and why this is important, visit our website.

Multi Bintang continues to focus on prioritising the sustainability of our operations as our way to make a difference. In 2015, we planned to source our green bottles from local suppliers and support the development of a green bottling plant, locally by a local manufacturer. Currently all of our bottles are supplied by manufacturers in China, due to the unavailability of green bottling plants in Indonesia. Unfortunately, the plan was postponed due to drop in sales volume in the beginning 2015 the restriction of beer sale in minimarkets.

We had a total of 568 suppliers listed in our procurement system, of which 506 suppliers ( 89.08 %) are local suppliers which mainly supply cans and carton boxes using recycle materials.

lOCAl SOURCING

45

89.89% of our suppliers are local

The 1st in the Asia Pacific region to

implement Procurement Capability Roll Out,

a world-class procurement practices.

Involvement of our suppliers is instrumental in meeting our sustainability commitments. We use HEINEKEN’s Supplier Code as a guide for our suppliers to fulfill responsible sourcing practices throughout our value chain. There are four key elements that our suppliers need to abide to when signing the Code, namely, Integrity, Code of Business Conduct, Human Rights48 and the Environment.

By the end of 2015, we have achieved our target to have 100% of our listed suppliers signed the Supplier Code. We were also privileged to be the first operating company of HEINEKEN in the Asia Pacific region to meeting the requirement of 100% compliance49. This Supplier Code is applied to all suppliers of product-related and non-product related or service. For a full explanation of HEINEKEN’s Supplier Code Procedure and our four-step approach, visit HEINEKEN’s website.

COMplIANCE wITh OUR SUpplIER CODE pROCEDURE

2015

2014 548(100%)

568(100%)

450 (82%)


SupplierPartners

11.11%International

89.89%Local


Suppliers Signing Supplier Code

Supplier that signed supplier code

Total Number of Suppliers

http://www.multibintang.co.id/sustainability/our-strategy-focus/sourcing

http://www.theheinekencompany.com/sustainability/focus-areas/sourcing-sustainably


46

In total 85% of procurement budget, spent on local suppliers, is on aluminum can as part of product packaging, while the remaining are spent on transport/logistics and other services50.

In 2015 we launched the Procurement Capability Roll Out (CRO), a HEINEKEN’s 9-month project to implement world-class procurement practices in our business operation, in order to improve end-to-end productivity and cost efficiency51. Through CRO, every Operating Companies are integrated in the HEINEKEN Global Procurement. Multi Bintang is honored to be the first in the Asia Pacific region to implement this global HEINEKEN program, which will enable us to leverage the advantages of the organisation’s global scale, as well as enhance its ability to manage suppliers and control costs at every point in the supply chain. The initiative will also reinforce value and role of procurement function, focus on sourcing and contract management, and ensure compliances to all regulations, so we can innovate and build cost leadership initiative to support sustainably company strategy. Our team leading the HEINEKEN Global Procurement Capability Roll Out Implementation consists of five people. They have to ensure the implementation in several stages, expected to be completed in June 2016.

hEINEKEN GlOBAl pROCUREMENT CApABIlITy ROll OUT

We continued to consolidate the Sales and Operations Planning (SandOP) platform to optimise integrated business planning, which was launched in 2014. We are already seeing the benefits in terms of increased operational efficiency, simpler and more structured decision-making, reductions in excess stock, more accurate sales forecasts, and better synchronisation between the commercial, supply and financial functions.

The Sampang Agung Brewery is implementing the 5S - Sort, Set in Order, Shine, Standardise, Sustain (Kaizen) - standardisation system in order to drive effectiveness and efficiency in both production and management systems. Based on the concept of eliminating waste, or any actions that incur a cost, yet do not add value, the application of the 5S has led to several improvements in productivity and safety. Staff are fully engaged in the 5S, with work teams and departments competing for awards for best performance, based on the periodic 5S audits.

47

The Sampang Agung Brewery is implementing the 5S - Sort, Set in Order, Shine, Standardise, Sustain (Kaizen) - to drive effectiveness and efficiency in both production and management systems.

100% The first in the Asia Pacific

Region to meet 100%

compliance for supplier code



48

ADVOCATING RESPONSIBLE CONSUMPTION

48


For more information on our responsible consumption

priorities and why this is important, visit our website.

49

Beer is a natural product enjoyed by people around the world. Drinking beer in moderation is a legitimate and integral part of a healthy, balanced lifestyle. As the industry pioneer, Multi Bintang takes this issue seriously and consistently advocates responsible consumption and drinking in moderation. Our parent company, HEINEKEN is part of Global Alcohol Producers Commitment Signatories and apply very strict rules about how to market and sell our beer products, including preventing underage drinking (see www.producerscommitments.org). The same commitment is also applied to us, Multi Bintang, as one of HEINEKEN’s operating companies, as we report all of our initiatives under the commitments on annual basis to be consolidated at global level. As a responsible beer producer, we are fully committed to educating and empowering our employees, seller and retailer communities, as well as customers and the public in general, about drinking responsibly, to ensure that our beer products are sold only to those who are legally permitted to consume alcoholic beverages in Indonesia: that is people aged 21 and above.

Despite our continuous dialogue with the government on providing more effective solutions to address concerns of underage consumption, in January 2015, beer industry in Indonesia underwent a sudden regulatory change following the enactment of Ministry of Trade Regulation No. 6 2015. The regulation specifically restricts the sale of alcoholic beverages in Category A, < 5%, beer and alcopops, in minimarkets. The change in regulation has a major impact on our distribution channels and severely impacted the availability of beer for many consumers of legal drinking age. The situation did not change our commitment to advocating responsible consumption, by working closely with the government and other relevant stakeholders evident from the following initiatives.

make responsible

consumption aspirational

through our brands

build measurable partnerships

in every market in scope, aimed

at addressing alcohol related

harm

take action at an industry

level, independently and also

in collaboration with members

of industry association

ADVOCATING RESpONSIBlE CONSUMpTION ThROUGh OUR BRANDS

Product Labelling

We have for close to 20 years placed a written warning on our product labeling: 21+ as the legal drinking age, the product is not to drink during pregnancy. In 2013, we also introduced The Enjoy Heineken Responsibly logo for the Heineken® brand only and dedicated website links about more complete information on the topic, Enjoyheinekenresponsibly.com (Heineken®) and www.drink-savvy.com (Bintang) where consumers can find further information from.

As part of the HEINEKEN Company, in 2015, we were required to take some actions to update our labeling information to consumers to align with an international regulation and also HEINEKEN Company’s global policy on responsible alcohol consumption52. The reason for updating and changing our labeling information is to prevent alcohol related harm and meet our industry commitments53. We place 3 symbols:

1. Don’t drink and drive

2. Don’t drink when pregnant

3. Legal Drinking Age symbol with 21+ for Indonesia, LDA+


Launch Campaign: 21+ Campaign

Watch the video here.

Innovation on Bintang 0.0% Category as

new product options for consumers.


don’t drink

and drive

don’t drink

when pregnant

Legal drinking

age symbol

with 21+ for

Indonesia, Lda+

http://www.multibintang.co.id/sustainability/our-strategy-focus/responsible-consumption

http://www.heineken.com/We-are-heineken/Enjoy-Heineken-Responsibly

http://www.drink-savvy.com/

https://youtu.be/h2NX0imDG_c


50 The same symbols must also be applied to secondary pack design (plastic wraps, cartoon boxes).

Not only that, the harmonization is done for the recycling symbols across our packaging types. The symbols include recycle symbols of steel, glass, aluminum, pet, and paper. At the moment, there is no external global/regional standardization on recycle symbol.

Specifically for the Heineken® brand as our global brand, it must comply with labelling rules on allergen declaration (emphasised typeface) and a minimum font size for all mandatory aspects. Low alcohol products must have a mandatory nutritional declaration as of December 2016. At Multi Bintang, the development and label approval was completed in January 2015 and was fully implemented for the Heineken ® brand starting February 2015.

In 2015, we provide a Consumer Care Hotline Number (0804 -1 -200300, standard charge applies) on our product labeling to provide opportunity for our consumers provide direct feedbacks to us54. An internal system has been place to filter, record and process direct consumer complaints.

51Brand activation Events and Corporate

Website

At every brand activation events or events that we sponsor, we consistently put up a clear 21+ signage (as the legal drinking age) and apply age screening procedure at the entrance gate and/or during purchase of our beer products. On a smaller scale brand activation event at outlets we also ensure that our products are served to consumers of a legal drinking age.

An age gate is applied on our beer brand page on our corporate website as well as on individual beer brand websites and social media platform. This would send a clear message to the public that as a company, we are responsible in applying responsible commercial communication and appropriately sharing information about our beer brands to those of a legal drinking age.

Product Innovation Low Alcohol Beer - A New Variant of Bintang Radler

Following the success of our innovation of Bintang Radler Lemon in 2014, in December 2015 we launched a second variant, Bintang Radler Grapefruit the same low 2% alcohol content but flavored with natural grapefruit juice with a slightly more acidic, aromatic taste. The new low alcohol Bintang Radler variants provide more options for consumers to choose from and create alternative drinking occasions as they become natural partners for lunch or a light dinner. Bintang Radler has been received very well in the market and become a strong trigger for our long line up of beer innovations in the coming years.

Natural Products with No Preservatives

All of our beer and non-alcoholic beverages uses materials that are derived from natural products i.e. malt/barley, natural juices and does not use any preservatives.

We consistently put up a clear 21+ signage

to ensure that our products are served to

consumers of a legal drinking age.

A seccond innovation variant, Bintang Radler

Grapefruit launched in December 2015

21+

0.0% Category

We are proud to be the pioneer in introducing a new product category 0.0% using the Bintang brand, a non-alcoholic malt beverage for the first time in Indonesia. The product category was created to meet the needs of consumers who want to enjoy the taste of beer but without any alcohol content .

Different from 0.0% category in other parts of the world, which the product is still produced in a brewing facility, our Bintang Zero 0.0% and Bintang Radler 0.0% are produced in a separate non-alcoholic production facility and do not involve the fermentation process. The Indonesian Government requires the production of non-alcoholic products to be done in a non-alcoholic production facility. This provides additional assurance to consumers that the beverage has zero point zero alcohol content.

In response to the needs of the market, we will continue to develop and introduce innovative new non-alcoholic products category in the coming year.


We place 3 new symbols in our labeling

information to prevent alcohol related

harm and meet our industry commitments. Legal Drinking Age symbol with 21+

for Indonesia, LDA+Don’t drink and drive Don’t drink when pregnant

52 53

Case Study 1: 21+ Campaign and Press Conference - GIMMI Partnership

Multi Bintang has worked together with a large number of minimart operators to train their staff to make sure they do not sell to people below the legal drinking age (21+ Awareness Program: legal drinking age and ID check procedure). Since 2012, approximately 1000 outlets and 15000 staff participated in the program. Moreover we also trained hotel, restaurant and café staffers making sure they only sell our products in a responsible manner. Despite the minimarket ban, our 21+ Campaign program still continues.

In October 2015, together with GIMMI (Indonesian Malt Beverages Industry Association) and collaboration with with PT Trans Retail Indonesia (Transmart Carrefour), we held two train the trainers’ workshops on responsible selling beer for 120 head of cashiers, customer service managers and selected key staff of Transmart Carrefour at the Institute Carrefour Indonesia (ICI), Bekasi56. The

training participants were exposed to information and knowledge about what is alcohol beverage and its categorization, legal drinking age, and procedures on ID check and tips and messages on addressing alcohol responsible retailing. From the training, the knowledge and skills of participants improved significantly from average pre-test (score 76) to average post-test (score: 93). As result, 50 actions plans are ready to implement by heads of cashier and Customer Services Coordinators. Recently, all stores at Transmart Carrefour and Carrefour also placed a special cashier line right in front of beer shelves to improve greater control over beer selling and fully implement ID check57.

On 11th November 2015, GIMMI and Transmart Carrefour held a press conference to share our joint industry initiatives on alcohol responsible and our compliance to the Trade Minister Regulation No. 20/2014.

“Through this 21+ campaign, our heads of cashier and customer service officers now have the essential knowledge and skill sets that can be shared to all cashier in Transmart Carrefour and Carrefour across Indonesia. Not only being a responsible retailer, this is our commitment to increase our standard service to customer of Transmart Carrefour”

– SaTRIa HaMIdCorporate Communications General Manager, pT. Trans Retail Indonesia

57 As stipulated in the Minister of Trade Regulation no 20/2014, alcoholic beverages only can be sold to consumers above legal drinking age (21+ years old) by showing identity card and served by a store

staff, and must have a separate shelf from other products and must acquire beer retailing permit issued by the Ministry of Trade.

Build measurable partnerships & Take action at an industry levelWe try to inform about history, origin and interesting facts about beer and how it should be

enjoyed responsibly in an creative way. through developed and published a small booklet

named Beer Tale “A Story about Beer”

The Oldest Beer Recipe

Widely popular and renowned beverage product across the world, beer is believed to have come from Sumeria (now Iraq) and the oldest recipe quoting simple brewing process was transcribed in a tablet stone dated 4.000 years BC.

Migration of the Egypt

Migration of the Egypt and Ancient Rome has a significant role to the introduction of beer to the European mainland where beer grew enormously to be the most favourite drink preferred by the society.

Beer brewing had become a home brewery industries and was a very familiar scene everywhere across Europe.

development of Beer in Europe

During the Middle Ages, in which European scientists discovered scientific inventions that make people’s life easier, the brewing process was also made easier and started to be commercialized. Europe became the beer brewing centers of the world.

Innovation of the 19th Century

A well-known scientist from France, Louis Pasteur, suggested brewers to make use of pure yeast for perfecting beer fermentation process. Dr. Elion, a student of Louis Pasteur, then pursued the idea and successfully created The Heineken A-Yeast in 1886, which was subsequently used for the Heineken beer fermentation process since. Today, there are more than 40.000 types of beer available in the world.

BeerTale Booklet

We continue try to engage our stakeholders and inform them about history, origin and interesting facts about beer and how it should be enjoyed responsibly in an creative way. Back in 2014, we developed and published a small booklet named Beer Tale “A Story about Beer” with an interesting narrative and visuals. We tried to use the booklet as a way to tell positive story and correct misperception about beer in various events and engagement opportunities. The booklets are available for free in both Bahasa Indonesia and English to our employees, government stakeholders, beer enthusiasts, the media and also general public and have been received positively by the readers. We have also extended our reach to the retailers as well as our competitors and regularly being used by the brewers association for industry stakeholders. In 2015, we printed the second batch with a total of 3500 exemplars. We will continue to explore and develop a more creative way to engage our stakeholders and tell positive stories and factual information about beer category.




54

Case Study 2: How You drink defines You (H.Y.d.d.Y)58

To avoid the sale of alcohol to minors in locations that we cannot strictly apply 21+ zone such as family restaurants, Multi Bintang launched a pilot initiative on responsible beer consumption in our selected Bintang brand activation events. The initiative called How You Drink Defines You (H.Y.D.D.Y) includes both socialization on responsible beer consumption to outlets and also the implementation of ID check at outlets. During the event, 21+ bracelets were given to outlet customers who have been ID checked

when they first order alcohol or beer. This helps the brand promoters, waiters or waitresses of the outlets to identify quickly those who are of a legal drinking age (21+) and avoid serving to minors. This program is well welcomed by the participating outlets, as a positive way to establish their position as a responsible outlets, and at the same time build a positive image of hospitality industry.

55

Case Study 3: Responsible Serving Training

Serving and selling alcoholic beverage responsibly requires special skill sets. In 2015, Multi Bintang partners with 6 on-premise59 outlets in Jakarta which was Eastern Promise, De Hooi, De Burse, Frank’s, Double Doors and Caz Bar to provide a half day “Responsible Serving Training” to 16 outlet staff including bar managers, bartenders and servers. This training is an extension to our existing 21+ campaign initiative with off premise retailers. Through this training, participants was provided with a strategy to identify, prevent and manage alcohol misuse including managing

intoxicated drinkers, avoiding serving alcohol to minors. The training was delivered by two international certified trainers from sales team of Multi Bintang and a lecturer from STP Bandung, the oldest and most reputable Tourism and Hospitality University in Indonesia.

59 On premise outlets in Indonesia have 3 categories: bars, restaurants and hotels.


“This training is important to people who work within hospitality industry as it helps to improve their service performance and skill level which will directly increase customer’s satisfaction”

– ENOS JuLvIRTa, a certified trainer of

Responsible Serving Training and a lecturer at STP Bandung.

56

Case Study 4: Outreach to Consumers Groups / Communities

Throughout 2015, we extend our engagement to a greater audience including the media and consumer groups. We open our breweries to multiple stakeholders including a community of beer enthusiasts, culinary experts, bloggers and share positive stories and facts about our product category. We also provided our support on activities of communities or consumer groups by sending our brewers as speaker in their events.

wE wAlK ThE TAlK

Training for Intervention Procedures (TiPS) at NSdC

Following the Training for Intervention Procedures (TiPS) session carried out in December 2014, the 11 sales team members who have been certified gave a two hours session to the rest of sales team during the annual National Sales Distribution Conference in Medan in

57

Enjoy Responsibly day 2015 – How Cool are

You?

Multi Bintang has initiated a number of initiatives to demonstrate our commitments on advocating Responsible Consumption on the retailer front. However, this is not enough. It is important for our employees to walk the talk by being active ambassadors of Responsible Consumption, showing that Drink in Moderation is part of our culture and telling positive story of beer category.

In September60 2015, we relaunched our internal alcohol policy called Cool@Work to refresh employee awareness on responsible consumption. Each week we disseminated information about responsible consumption topic to our employees in the format of memes, video, Facebook page, Email, SMS and others. The month was closed with an internal event at both breweries, where we organised a quiz with six teams, representing each department competing against each other to answer questions about responsible consumption and Cool@Work information that already distributed. See how we celebrate our Enjoy Responsibly Day 2015 here.

Multi Bintang’s ERD opening video

from our President Director

246 Times

participated in the event

190 Employees

120 in Tangerang

70in Sampang

Agung

90%Questions answered

correctly by participants

60 Every September we celebrate Enjoy Responsibly Day together with the rest of

operation companies of HEINEKEN Company worldwide.

February 2015. The programme aimed to advance the quality of service and standards on responsible alcohol serving and hopefully will help the sales team in addressing the topic with customers and outlet staff. Read more about this case study on our 2014 Sustainability Report page 74 and view the program on our youtube channel.

TiPS programme aimed to advance the quality of service and standards on responsible alcohol serving and hopefully will help the sales team in addressing the topic with customers and outlet staff.

We relaunched our internal alcohol policy

called Cool@Work to refresh employee

awareness on responsible consumption.



https://youtu.be/q1B5L4UlDt0

https://youtu.be/uRcyuLTDfnw


https://youtu.be/ToKDLodBfWk


Provide a healthy and

safe environment for the

employee, contractors and

visitors.

Prevent occupational

illness and injury

eliminate, minimize or

control any hazards in the

workplace

PROMOTING hEALTh & SAFETy

58


For more information on our health and safety guideline

and why this is important, visit our website.

59

In 2015, we paid particular attention to heightening transparency and accountability around safety, proactively addressing potential hazards before accidents occur61. To achieve our commitment in health and safety at work, we ensure there is a monitoring system in place and conduct several education and awareness programs for production staff to office personnel, such as safety E-Learning (online learning about safety issue), road safety alert (campaign about road safety), defensive driving training, accident investigation training and General AK3 (Ahli Keselamatan dan Kesehatan Kerja) certification for Specialist Work Safety and Health. This was an effective approach enabling

us to cover all employees. We also have a dedicated committee for Work Safety and Health consisting of a representative from management and every department in our organisation and four dedicated employees: two Safety Health Environment Manager from two breweries, one HR Commercial, one Health and Safety Manager62. On annual basis, we hold a general medical checkup for all of our employees.

Although we have implemented all the safety procedures very carefully, but still work accidents can occur due to negligence or accidents that occur outside working hours.

SAFETy & hEAlTh AT wORK

Fixed -term employement contract

Permanent employement contract

5

6

11

Incident

1

MinorAccident

104

142

1

37

Near Miss

1

1

SeriousAccident

1

44

grandtotal

Contractor

Grand Total

Accident - Incident Based on Employment Type63

Contractor

Hand exposed glass

hand scraped PPE box

the affected hand glass

plate and scraped skin burns on the hands

Permanent employee

back injury when opening the valve

exposed tooth plate at the time of grinding

hands exposed to liquid chemicals

exposed piping hot hands

exposed piping hot hands

Minor accident

Permanent employee

Permanent employee: Falling off the bike

Contractor

Having a ladder at work

The following are some of the reported accidents that occur in the plant and outside the plant in 2015:

6 Multi Bintang Employees5 Contractors

11 incidents

We conducted several education and awareness programs such as safety E-Learning, Road Safety

Alery, Defensive Driving Training, Accident Investigation and General AK3 Certification for Work Safety

and Health Specialist.


110

1551

http://www.multibintang.co.id/sustainability/our-strategy-focus/health-safety


60

As a company producing and selling alcoholic beverages, a policy to set moderate consumption in work environment as well as promote responsible consumption outside the organisation is needed. Cool@Work is our alcohol policy at work derived from HEINEKEN Company where it provides preventive action and support program. In 2015, we relaunched our Cool@Work policy and release an employee survey on their awareness about responsible consumption, alcohol policy at work and drinking behaviour. The result of the survey will be used as a reference for Health and Safety Manager to prepare future program and communications to employees. The company also have an Employee Assistant Program to help any employees, who are facing challenges with their drinking pattern. To date, no employee have been indicated to have alcohol behaviour challenges.

COOl@wORK

Driving a motor vehicle is part of business daily activities of most Multi Bintang employees particularly the Sales team. We equip employees with knowledge about safety driving behaviour by providing a Defensive Driving Training. Started from recruitment process, apart from employee’s health check, we ensured the candidates are fully licensed. We also communicated the Road Safety Golden Role as follow:

DEFENSIVE DRIVING TRAINING

61

Road transportation is an essential element throughout the Multi Bintang value chain, though it can be a high-risk activity due to unpredictable traffic conditions and low safety awareness among road users.

In 2015, we continued to run our safety driving campaign. A compulsory defense driving training was held in Jakarta, on 2-3 July 2015 combining theory and practical sessions over two full days and closed with participants making a pledging to always prioritise safety when driving. In total 25 sales personnel participated in the session. Once in every 3 years, they are required to join a refreshment training. As part of the evaluation, two months following the training, trainer will contact each participants to evaluate material and safety driving technique.

Do not drink and drive

Do not use mobile phone while driving

wear seatbelt

Drive in recommended speed

have a valid driving license

142 near miss case

104 Multi Bintang Employees, 37 Contractors,

1 Contract Employee

2 accidentsContractor

No OdR (Occupational disease rate)

No fatality

1 Serious accident(Contractor)

people

83%

190From

from Operator level to Senior Manager

participated in the

Survey (158 people)

people as

5 Committee


s

2 HR Managersfrom 2 Breweries,1 HR Commercial,1 Corporate Communicationand Sustainability Manager,1 Health Safety Manager


62 63

Case Study 2: vaccine Influenza, Cervix and Hepatitis for Employee

Since 2005, Multi Bintang has conducted several programs and periodic free vaccines to all employees and for the new recruits including:

1. Influenza Vaccines: in mid-2003, there was an outbreak of avian influenza in the Asia Pacific region including Indonesia with many causalities for birds and in early 2005 for humans. The company had since provided flu vaccines on periodical basis to all employees.

2. Hepatitis B Vaccines: since 2006, the company provides Hepatitis B vaccine to all employees as it is considered as a chronic disease although not contagious.

3. Cervical Cancer Vaccines: in 2012, the company provides a cervical cancer vaccine to all female employees. The company realized that not only female employees are entitled to receive this vaccine, but the wife and children of employees are also entitled to a vaccine facility to maintain the health of the employee’s family. In 2016, the company will provide a cervical cancer vaccine program to all new employees and employees (female) who have not been vaccinated previously coupled with the wife and daughters of employees who are willing to receive the vaccine.


To better engage employees, safety messages are delivered through fun activities as well as in the form of training and drills. STOP or Safety Training Observation Program is a program developed by the Safety, Health and Environment division to encourage employees to care and more alert with activities or behavior not in accordance to procedure and standard of occupational safety. The purpose of this program is to STOP activities that one does and remind him that what he did is harmful for his and others’ safety.

On 24 April 2015, Sampang Agung Brewery organized the Safety Training Observation Program, STOP Quiz in conjunction with the HEINEKEN’s annual World Safety and Health Day. The training involved:

• Introduction of what STOP is • Development of training material in video

format• The use of WhatsApp application to report

STOP

• STOP benchmarking across divisions, • Integration into the Total Productive

Management system,• Continuous STOP reporting by employees.

The most engaged employees who do regular reporting on STOP will be the winner. Through such activities, we can promote safety based behavior through positive encouragement. At the event, awards were presented to employees for the quality and quantity of their safety reports.

In today’s volatile world, employees must always be alert to the possibility of unexpected events and threats. Staff at Sampang Agung Brewery tested their readiness in July 2015 when they had to deal with a simulated riot at the brewery gates. The simulation provided an opportunity to test various safety and evacuation procedures and learn valuable lessons on how to anticipate and manage such situations in future.

Case Study 1: Quiz STOP


64

GROwING wITh COMMUNITIES

For more information on our community investment

priorities and why this is important, visit our website.

65

Where we have the opportunity to help communities prosper, we do so. It is good business and it can support us in the long-term. Our community investment covers local communities surrounding our business operations and also beyond. It is not limited to just financial donation, but also program development such education and capacity building. In the coming year of 2016, we plan to do a more comprehensive community needs assessment in the area of our breweries and NAB plant to ensure that our community programs able to meet and address the local challenges.

Our overall contribution to the communities has decreased by 65% to around IDR 454.8 million in 2015 from IDR 1.3 billion in 2014. This is due to impacted company revenue following minimarket ban and a series of macroeconomic shocks that contributed to weakened domestic consumption and a slowing of Indonesia’s economic growth rate to 4.8% in 2015.

INVESTING IN OUR COMMUNITIES64 65

Our contribution to communities by forms of direct contribution

Year Cash In-kind time

Cause of direct contribution & breakdown if community’s investment program

Year 2015 2014 2013

IdR 454,833,250 IdR 1,361,958,664 IdR 883,408,713TOTaL

Our contribution to Community

Year Philanthropy Commercial Initiatives Community Investment


Our overall contribution to

local communities for them to

prosper.

Rp. 454.8 million

We contribute not only financialy but

also development such as education

and capacity building.


our business brings us into close contact with millions of consumers and stakeholders daily.

Where we have the opportunity to help communities prosper, we do so.

it’s good business and it can support us in the long-term.

IDR 819,177,912 (60%)

IDR 1,297,083,456 (95.2%)

IDR 67,591,000 IDR 161,727,952 IDR 11,478,700

IDR 8,245,750 IDR 30,681,625 IDR 79,433,013

IDR 312,616,750 (69%)

IDR 2,080,000 IDR 61,053,200 IDR 60,724,200

IDR 1,000,000 IDR 50,000,000 IDR 125,916,000

IDR 4,351,600 (0.3%) IDR 60,524,008 (4.4%)

IDR 745,126,813 (84%)

IDR 869,414,713 (98.4%)

IDR 0 IDR 403,348,000 IDR 0

IDR 334,697,500 IDR 665,147,887 IDR 499,856,800

IDR 41,309,000 IDR 0 IDR 0

IDR 4,073,000 (0.5%) IDR 9,921,000 (1.1%)

2013

2013

2014

2014

2015

2015

IDR 334,607,500 (74%)

Environment

Education

Art/Culture

Emergency Relief

Health

Social Welfare

Others(Public Facilities)

IDR 142,216,500 (31%) 0

IDR 250,000,000 (18%)IDR 129,225,750 (26%)IDR 292,781,152 (22%)IDR 138,281,900 (16%)0

0

http://www.multibintang.co.id/sustainability/our-strategy-focus/communities


66

Multi Bintang is fully committed to support the growth of tourism and hospitality industry in Indonesia. It is our firm belief that the tourism and hospitality industry will continue to flourish, be an economic driver and open up employment opportunities for many young Indonesians.

Since 2013, we intensified our support towards the hospitality and tourism industry by partnering with reputable tourism and hospitality academies as well as food technology or any technical faculties related to our industry across Indonesia. We shares our resources, expertise and knowledge about brewing industry and products, as well as provided firsthand learning opportunities to the students. Recognizing that these students are future leaders of the industry, we opened our doors to them to learn about the beer brewing process through brewery visits and how to provide excellent customer service through six star service training on excellent beer pouring and serving.

UNIVERSITy pARTNERShIpS

In August 2015, Multi Bintang sponsored the bar laboratory renovation for Sahid Tourism and Hospitality Academy. The bar is occupied on daily basis by lecturers and students of Food and Beverage classes to do practical learning.

2015 Activities related to Multi Bintang’s University Partnership

8

7 2 new MOuswith Tourism and Hospitality Academies and 1 renewal STP Bali & STP Sahid (new) and STP Bandung (renewal).

67

Case Study 1: 100 Mak Nyus Bali by Bondan Winarno

As Indonesia’s main tourist destination, Bali is crowded with international chains and a buffet of world cuisines. However, traditional Balinese foods are still lagging behind. With a mission to preserve Indonesian local culinary and strong presence of our Bintang brand in the island of Gods, Bali, Multi Bintang agreed to become the sole research sponsor of “100 Best Food Bali” Book by Bondan Winarno, the Indonesian renowned culinary expert. After one month research in Bali, on October 2015 the book was published in both Bahasa and English

and becomes one of the book was exhibited in Frankfurt Book Fair 2014. The book is all about 50 Best Balinese Traditional Cuisines and 50 Best Restaurants in Bali, a book to discover Balinese Culinary. The book is believed to be the most sought after culinary book written by Bondan Winarno and his co-writers from Jalansutra community, Harry Nazarudin and Lydia Tanod. View the video of the official book launch event and the authors’ foreword about the book in Denpasar Bali last January 2016 in Multi Bintang youtube channel.

COMMuNITY PaRTNERSHIPS


brewery visits

to

with a total of 385 visitors2 tourism and hospitality academies,6 engineering faculties

Tangerang Brewery

Sampang Agung Brewerybrewery visits

to

with a total of 340 visitors(all non-hospitality academies)

3 Guest lecturesessions

at universities/academies

2015

2014 4 university partnerships

6 university partnerships

https://youtu.be/Z4MYke5F9aw

https://youtu.be/0KVfylJVfc4


68

Case Study 2: Our Research Contribution on Christian university duta Wacana

Multi Bintang participated as one of the speakers in a Workshop and National Conference held by students majoring Biotechnology Christian University Duta Wacana Yogyakarta with theme “Research Contribution on Industry” on 18-19 September 2015. Through this event, we had the opportunity to share and introduce Multi Bintang as a fermentation based industry.

In addition, we also shared about our state of the art technology and our industrial best practices such as Total Productive Management (TPM), 5S66 and standardisation system as well as our sustainability initiatives in our business operation. Around 350 people participated in the conference.

69

Case Study 3: Community Philanthropy

In 2015, both Tangerang and Sampang Agung Brewery participated in the celebration of Eid Fitri and Eid Adha by distributing qurban meat from 59 goats and made financial donation to approximately 2000 families, orphans and elderly people in need in the surrounding areas, sub-district of Poris Gaga in Batuceper District near Tangerang, and 7 villages in the vicinity of Sampang Agung Brewery. The program was facilitated by Multi Bintang Labor Union, local government and military. We also continued to provide supports to activities of local communities

surrounding the breweries, during national events such as Indonesia’s Independence Day, local youth gathering, religious festive, Ruwat Desa and so on. In addition, we also supported the construction and renovation of a number of public facilities, such as schools and mushollas. The breweries also provided milk and nutrition supplements for children through local posyandu, the village health clinic in Batu Ceper. To support employees’ health and wellness, the company organised yoga and futsal games.

66 Sort, Set in Order, Shine, Standardize, Sustain (Kaizen)



VALUES & BEhAVIOR

For more information on our sustainability

report, visit our website.

70 71

We value a passion for quality, brands that people love, enjoyment of life, respect for people and for our planet. Our values represent what we stand for as a corporate citizen, a business partner and an employer. They inspire us and are embodied by our employees at every level, function and geography of our business.

A set of behaviours is introduced to support companies in achieving its business target or goals while at the same time helping to strengthen its corporate culture. Through exercise such as climate survey, Multi Bintang can directly capture and measure the perception of employees in totality.

A series of workshops were carried out throughout 2015 in across all divisions to learn what employees understand about our culture. The insights gathered during these workshops were then formulated into the following three key behaviours68 that we believe relevant to our business and fit for our daily operations:

These behaviours are expected to instill a culture that Multi Bintang wants to nurture to sustain its business operations and existence in the country in many years to come.

Internally since 2014, we have launched the Speak up Policy, HeiRules and Code of Business Conduct and communicated it throughout the organisation, to ensure our people all over the world understand what is expected of them when acting on behalf of the Company. It helps achieving our business objectives, but also minimises financial risk such as corruptions, fraud and bribery and damage to our reputation69. The Code is supported by a variety of communication and training materials. To learn more about this, read our 2014 Sustainability Report page 94 from our website.

BEhAVIOUR & CUlTURE67

68 Previously in 2014, Multi Bintang introduced 6 behaviours which include 1).

Put Safety First, 2). Drive to Win, 3). Take Initiatives, 4). Be Accountable, 5). Foster

Collaboration and 6). Engage and Inspire Other.

A

Be Accountable

C

Communicate Openly

Collaborate in Trust

T

A C T

Values & Behaviors Appendices & GRI IndexThe Big Picture Our Focus AreasValues & Behaviors Appendices & GRI IndexThe Big Picture Our Focus Areas

Internally since 2014, we have launched the Speak up Policy, HeiRules and Code of Business

Conduct and communicated it throughout the organisation, to ensure our people all over the world

understand what is expected of them when acting on behalf of the Company.

Passion for quality enjoyment of lifeRespect for people and

for our planetbrands that people love

http://www.multibintang.co.id/company/vision-mission-and-value


http://www.multibintang.co.id/sustainability

http://www.theheinekencompany.com/~/media/Websites/TheHEINEKENCompany/Downloads/PDF/Code%20of%20Business%20Conduct/Speak%20Up%20Policy.ashx

http://www.theheinekencompany.com/~/media/Websites/TheHEINEKENCompany/Downloads/PDF/Code%20of%20Business%20Conduct/Heineken%20NV%202013%20Code%20of%20Business%20Conduct.ashx

http://www.theheinekencompany.com/~/media/Websites/TheHEINEKENCompany/Downloads/PDF/Code%20of%20Business%20Conduct/Heineken%20NV%202013%20Code%20of%20Business%20Conduct.ashx


72

Multi Bintang’s people are our most valuable asset. Particularly during this challenging year, their talent, commitment and creativity have helped sustain the business and drive it forward. As an open, forward-looking company, we are committed to providing our people with opportunities to develop their talents and broaden their experiences in a variety of settings. At the same time, as a member of HEINEKEN Company’s global network, we benefit from being able to tap into insights from around the world by creating a multinational team at the operational level as well as the director level.

As of 31 December 2015, Multi Bintang employed 475 people, compared to 494 people in 2014. The proportion of permanent employees has increased: in 2015 there were 447 permanent employees and 28 contract employees, whereas in 2014 the figures were 448 and 45, respectively. More than 75% of employees have a Diploma, Bachelor’s or Master’s degree. Around 17% of employees are female. There are 208 number (43.79%) of employees covered under Collective Labor Agreement Health and Safety, compared to last year 21071 72 73.

OUR wORKFORCE

Multi Bintang currently has four international staff, from Uzbekistan, France and the UK, in non-managerial positions. The diversity of experience, approach and thinking that these expat staff bring enriches our team and pushes them to approach challenges with a fresh perspective74.

At the same time, eight Multi Bintang employees are applying their own insights and sharpening their skills in HEINEKEN operating companies in three different countries. This is a motivating factor for local staff, as it proves that our people are able to compete at the global level. Moreover, the Company will benefit from the international experience gained by our expat employees when they rejoin the team in Indonesia.

We have a standard framework for performance management which was put in place in across the organisation in 2010. Each employee has a personalised set of Key Performance Indicator that relate to both individual performance and company performance in general.

475447 81

86 389

employees

permanentemployees

permanentemployees

28contract

employees

5contract

employees

366permanentemployees

23contract

employees

Type

TOTaL

Malefemale

TOTaL EMPLOYEE PER dEC 2015

73

We seek to provide be a competitive employer by providing rewarding career opportunities as well as competitive remuneration. Our pay policy and practices are benchmarked annually against the market, especially similar companies in the FMCG industry, and we offer a comprehensive benefit package that includes health insurance, life insurance, disability coverage, maternity benefits and a pension75. Medical benefits are also extended to part-time employees.

Multi Bintang seeks to create a balanced work-life environment by providing opportunities for employees to develop personally as well as professionally. English language training and yoga classes are among the activities on offer, and throughout the year we organise themed outings, team building activities and family days to help employees stay motivated and inspired to perform at their best.

VOlUNTARy TURNOVER RATE VS. OThER INDUSTRyTOTAl EMplOyEES 2013 - 2015

2013 2014 2015

470

392

78

493

406

87

474

388

86

Total

Man

Woman

TURNOVER RATE76

53 EMplOyEESRESIGN

(10.75% FROM 493 TOTAL EMPLOYEES)

2014

5

57 EMplOyEESRESIGN

(12.03% FROM 474 TOTAL EMPLOYEES)

2015

4847 10

8 Multibintang employees were assigned

for International assignment in three

different countries within HEINEKEN

network.

Each employee has a personalized set

of Key Performance Indication to make

sure of high perfomance

English language training and yoga classes are among the activities on offer, and throughout the

year we organise themed outings, team building activities and family days to help employees stay

motivated and inspired to perform at their best.


70

2012 2013 2014 2015 1st half

5.2%Mining

Mining Services

Automotive

Chemical

Consumer goods

Life Science

high Tech

All industries

8.2% 6.3% 4.7% 1.5%

5.5%

6.6%

5.4%

6.2%

9.1%9.5%

5.6%

6.0%

9.6%

2.4%

2.1%

3.9%

4.9%

3.6%8.8%9.1%8.8%

10.5%

11.3%

11.7%

10.1%9.4%

12.4%

3.3% 3.6% 1.6%


74We offer a suite of benefits including disability coverage, health care, life insurance, maternity and retirement provision for full time employee77. And for our part time employees also receive medical benefits. Through our internal communication and also union labor, we always inform updated employee benefits to all employee.

2015 was an important year for industrial relations in Multi Bintang. We renewed our Partnership Agreement between Multi Bintang and Employee for period 2015-201778. This 15th agreement is a strategic component for our employment practices, which set requirement and fundamental work under negotiation and mutually agreed by union and management.

Due to the new agreement, several articles about benefit were changes. There are also some changes for employee benefit, such as transport allowance regarding to increasing public transportation rate.

Employee can freely join union labor that affiliated to PUK SP RTMM FSPSI both in Tangerang and Sampang Agung. Our regulation for employee based

EMplOyEE BENEFIT

We are committed to giving our people the opportunity to maximise their potential through a diverse range of education, training and personal development options. At the same time we are constantly reassessing the skills and capabilities, needed to support Multi Bintang’s medium and long-term growth plans.

Development programs are delivered through a mix of formal classroom-based learning, on the-job training, e-learning and information sharing sessions, covering a range of functional and technical competencies as well as soft skills and leadership skills. All employees draw up a Personal Development Plan with their line manager, which helps to ensure that both the employee’s

EMplOyEE TRAINING & EDUCATION

75

30%

20%18%

3%1%

9%

15%

1%

3%

EMplOyEES NUMBERS pER DIVISION

on Business Code of Conduct, UU Ketenagakerjaan (Employment Law No. 13 Year 2003), Agreement Partnership 2015-2017 and others law approved by the Multi Bintang Management as well HEINEKEN Company79.

personal and career aspirations as well as the Company’s current and future business needs are accommodated.

Due to the impact of the Minister of Trade’s Regulation No. 6/2015 on the business, the annual training program was significantly curtailed, as activities were deferred in line with the Company’s cost management initiatives. Average training hours per person therefore dropped from 8.78 hours in 2014 to 3.13 hours in 201580. Several training programs did go ahead, including the First Line Manager Development Program (FLM-DP) in mid-2015. This activity, which is part of the HEINEKEN Company’s leadership curriculum, aims to equip Multi Bintang’s First Line Managers (FLM) with globally applied leadership methodologies and tools. As well as ensuring that HEINEKEN’s international standards are upheld in Indonesia, it also helps to improve the transferability of Multi Bintang’s FLM should opportunities arise elsewhere in HEINEKEN Company’s global network.

In 2015, there were increasing number training sessions from 216 in 2014 to 261 sessions. This increase was partly due to:

1. Compulsory Training for all employees, such as e-learning modules Safety, e-learning module IT security, e-learning module Business Conduct guide from HEINEKEN Company.

2. Training of introduction for production of functional competence.

3. Leadership training.

We are proud to report that Multi Bintang’s own people are now wowing the world. Providing opportunity for career movement may be limited in a small organisation. However, being Part of the HEINEKEN Company, we have been able to collaborate with other Operating Companies within the Asia Pacific Region to create the nurturing ground for our Talents. Since 2012, there is an increasing number of employees being assigned overseas. In year 2015 alone, there are 7 employees assigned to 4 different countries in various functions, and there are more to come.

This benefits the Company in two ways: it demonstrates to our people that they match up to global standards; and the experience of diverse approaches and new ways of thinking will enrich our operations when our ‘expats’ eventually rejoin our team in Indonesia. We are also currently gaining from this diversity by having several international members on our team, including staff from the Netherlands, the UK, France, Uzbekistan, Singapore and Malaysia.

EMplOyEE DEVElOpMENT

Encouraging people to enjoy beer responsibly and in moderation is at the core of our social mission. To be able to communicate this successfully to the public and create a more positive perception of beer, we have started with our own employees by spreading the message that drinking in moderation is cool, through annual events such as ‘Enjoy Responsibly Day’. Through this event, we are able to engage employees and have a dialogue through where company can engage, quizzes and discussions.

EMplOyEE ENGAGEMENT

TRaINING SESSIONS

were done in the year 2014

We have international staff members from

around the world including Netherlands, UK,

France, Uzbekistan, Singapore and Malaysia261


President Director Office

Finance

Supply Chain

Marketing

Sales

Tangerang Brewery

Sampang Agung Brewery

hR

Corporate Affairs


2.62

3.23

76

AVERAGE TRAINING hOURS

Every Multi Bintang employee is across all level are subject to at least two sessions of performance review in the beginning of the year to set Performance targets and review of last year performance and mid-year review to assess the progress81.

*Total number employee training is the number of employee trained during a year, means that 1 employee may join more than 1 training session

77

This decrease occurred because the e-learning module only requires an average of 30-45 minutes of employee time. In addition, the classroom training format is not a lot to do because most of the material must be available in e-learning.

In addition, everyone in the organisation is required to internalise the ‘Responsible Commercial Code’, HEINEKEN Company’s global guideline, through e-learning. In this way we ensure that employees are able to deliver accurate information about drinking beer and are empowered to become ambassadors for responsible consumption.

Good communication is a prerequisite for a productive, safe and creative workplace. We consistently encourage opportunities for meaningful two-way dialog between management and staff, and in 2015 we launched TuesdayAMA, an innovative internal communication platform, powered by WhatsApp, for employees to ask management about anything related to the company. It is also an effective forum for employees to share creative and practical ideas with management. This initiative has strengthened employee engagement, made them feel valued and enabled emerging issues to be dealt with quickly.

Men

women

9.74

7.302014 2015

Case Study 1: Launching New Corporate Identity

More than 80 years Multi Bintang has been serving customers with the enjoyment of quality beverages and establishing Bintang as an Indonesia’s iconic and loved beer brand. However, we have expanding our brand portfolio to delighting consumer with new experience. Behind this brands, none of this positive growth will be possible without driven and inspired people. And with the continual transformation or our most valuable asset, our people, we know we can go from strength to strength and deliver sustainable star performance. This time for Multi Bintang known for our champion brands, our people and performance so we can WOW Indonesia.

The development of Multi Bintang’s new corporate identity was started in the Q4 2013 in which the process involved a series of in depth interviews to gather some insights with selected number of employees. The interview and insights gathering were carried out by a brand consultancy which later helped the Corporate Identity team to craft a solid brief for the design agency to work on the logo identity and its narrative. The identity was then officially launch on 2nd February 2015 in two business locations, Tangerang and Sampang Agung, and relayed live to 14 sales offices across Indonesia via closed YouTube channel, allowing all employees to be a part of this exciting new step in Multi Bintang’s journey.

Case Study 2: Work and Life Balance for Employee

Multi Bintang seeks to create a balanced work-life environment by providing opportunities for employees to develop personally as well as professionally. English language training and health and wellness program such as yoga classes and futsal are among the activities on offer, and throughout the year we organise themed outings, team building activities and family days to help employees stay motivated and inspired to perform at their best.


4 1814 2 42

23 5633 21 4019

Grand

total

Corporate Affairs

Finance

Human Resources

Marketing

Supply Chain

President Director Office

Organization Group Name

Female maleGrand

totalFemale male

2014 2015

10 122 14 217

344 53074963 14597 78997302

66 9529 70 13161

13 5845 34 4511

Sales 25 219194 53 749696

Grand Total 485 57655280 791 88898098

divisionaverage hours

2014

4.79 3.47

8.11

10.36

9.39

7.48

7.49

3.16

0.50

1.83

3.41

13.83 4.69

4.84Human resources

MarketingPresident DirectorOffice

Sales

Supply Chain

average hours 2015

AVERAGE IN TOTAl 8.78 3.13

Corporate Affairs

Finance


AppENDIx 1: DElOITTE ASSURANCE REpORT FOR hEINEKEN GlOBAl SUSTAINABIlITy REpORT 2015

To the stakeholders of Heineken N.v.

The Executive Board of Heineken N.V. (‘the Company’) engaged us to provide limited assurance on the Sustainability Report 2015 (leading to a ‘conclusion’). This report comprises a description of the policy, the activities, events and performance of Heineken N.V. relating to sustainable development during the reporting year 2015.

Limitations in our scope

The report contains prospective information, such as ambitions, strategy, targets, expectations and projections. Inherent to this information is that actual future results may be dierent from the prospective information and therefore may be uncertain.

We do not provide any assurance on the assumptions and feasibility of this prospective information.

References in the report to the sustainability section of the Company’s website and to other documents are outside the scope of our assurance engagement. We did not perform any assurance procedures on information other than for the year 2015.

Management’s responsibility

Management of the Company is responsible for the preparation of the report in accordance with the Sustainability Reporting Guidelines GRI G4 Core option, including the identification of the stakeholders and the determination of material subjects. The disclosures made by management with respect to the scope of the report are included in Appendix A ‘Reporting basis’.

7878 79

Furthermore, management is responsible for such internal control as it determines is necessary to enable the preparation of the report that is free from material misstatement, whether due to fraud or error.

auditor’s responsibility

Our responsibility is to express a conclusion on the report based on our review. We conducted our review in accordance with Standard 3810N “Assurance engagements relating to sustainability reports”. This requires that we comply with ethical requirements and that we plan and perform our work to obtain limited assurance about whether the report is free from material misstatement.

A review is focused on obtaining limited assurance. The procedures performed in obtaining limited assurance are aimed at the plausibility of information, which does not require the same exhaustive gathering of evidence as in engagements focused on reasonable assurance. The procedures performed consisted primarily of making inquiries of management and others within the Company, as appropriate, applying analytical procedures and evaluating the evidence obtained. Consequently, a review engagement provides less assurance than an audit.

We believe that the evidence we have obtained is sucient and appropriate to provide a basis for our conclusion.

Procedures performed

Our main procedures included the following:

• Performing an external environment analysis and obtaining an understanding of the sector, relevant sustainability issues, relevant laws and regulations and the characteristics of the organisation.

• Evaluating the acceptability of the reporting policies and their consistent application, such as the assessment of the outcomes of the stakeholder dialogue and the reasonableness of estimates made by management.

• Assessing whether the sustainability information has been prepared ‘in accordance’ with the Sustainability Reporting Guidelines GRI G4 Core option.

• Evaluating the design and implementation of the systems and processes for data gathering and processing of information as presented in the report.

• Interviewing management or relevant staff responsible for the sustainability strategy and policies at corporate level.

• Interviews with relevant staff responsible for providing the information in the report, and responsible for carrying out internal control procedures on the data and the consolidation of the data in the report.

• Reviewing internal and external documentation to determine whether the sustainability information, including the disclosure, presentation and assertions made in the report, is substantiated adequately.

• Analytical review of the data and trend explanations submitted for consolidation at Group level.

Conclusion

Based on our procedures performed, nothing has come to our attention that causes us to conclude that the report, in all material respects, does not provide a reliable and appropriate presentation of the Company’s policy for sustainable development, or its activities, events and performance relating to sustainable development during 2015, in accordance with the Sustainability Reporting Guidelines GRI G4 Core option.

Rotterdam, 6 April 2016

Deloitte Accountants B.V. P.W. Seinstra



80

AppENDIx 2: REpORTING BASIS

Scope

This report covers the performance of two of our breweries at Tangerang and Sampang Agung, Non-Alcoholic Beverage (NAB) Plant as well as its subsidiary, PT Multi Bintang Indonesia Niaga from 1 January 2015 up to and including 31 December 201582.

Reporting Systems83

• Safety data is reported quarterly via a HEINEKEN global system named Accident Reporting and Investigation Software (ARISO) system.

• Our breweries and the NAB Plant submit environmental data on a monthly basis in the Business Comparison System (BCS) managed and validated by HEINEKEN Global.

• The HEINEKEN’s Green Gauge internal reporting system allows us to monitor and report quarterly progress against 11 key areas, related to our commitments/global targets.

• Other HEINEKEN global reporting systems include the Contract Lifecycle System (CLM) and the EcoVadis Platform for Supplier Code and performance information, and Ethics Point for ‘Speak Up’ data.

Reliability and accuracy of data

Various data points are confirmed internally through staff and systems that have been established to collect and review that data. Subject matter experts are involved at various

levels to validate and challenge the data and process. Our KPIs progress, reporting processes and data validation is monitored by HEINEKEN Sustainable Development Team, on a continuous basis, through an integrated reporting system where representatives of the Process and Control Improvement function working together (BCS governance and global Health and Safety).

The accuracy of the supplied safety data is checked. The safety reporting parameters should meet set parameter requirements. If parameters do not meet these requirements, the Safety and Health Manager will be requested to correct data and the Human Resources Director to validate it within the ARISO reporting guidelines. The accuracy of environmental data depends on the method of measurement, the calculation procedure and whether estimates have been used.

81

REFERENCE INFORMATION

a Multi Bintang Publication

Corporate Affairs Division

Head Office

Talavera Office Park 20th FloorJl. Let. Jend. TB Simatupang Kav. 22-26Jakarta 12430, IndonesiaJakarta 10032T. 021-7592 4611F. 021-7592 4617W. www.multibintang.co.id

Let us know your thoughts

Which aspects of Brewing a Better Worldare working well? Where do you thinkwe could do better? We look forwardto hearing your views and [email protected]

Bambang Britono

Corporate Affairs Director

Ika Noviera

Corporate Communications and Sustainability Manager

Oesha Thakoerdin

Editor

Creative faith

Graphic designer

Photography

Collections of Multi Bintang

We would like to thank the wider Multi Bintang community and friends for providing support, information and energy for this 2015 Sustainability Report.

AppENDIx: ABBREVIATION

WSva

PdaM

ak3

aRISO

Water Source Vulnerability Assessment

Perusahaan Daerah Air Minum / Local Water Company

Ahli Keselamatan dan Kesehatan Kerja / Work Safety and Health Expert

HEINEKEN global system named Accident Reporting and Investigation Software system


SPECIaL THaNkS TO

Nasthasya PrimaBeatrice SusantoDidik SuharsonoHerwanda KarliChew Boon HeFerry SitepuSilvanus FandoKosmas PurnamaLuhut PakpahanHandi TendiMarcius SinagaKarissa LiuganFahmi GadingPurbo WicaksonoAndijaya ChandraWisnu WibowoRonald RantiHning WicaksonoSantoso SulastopoWahyu WijayantoRonald TanesiaDesy UtamiErwien RahadiyantoRudy HidayatJenny TumewuNathalia NugrahaniFahmi RajendraRetno BudisusantiBaroto Muhammad AnasArifin

http://www.multibintang.co.id/

mailto:cs%40multibintang.co.id?subject=


8282

GRI G4 GENERAL STANDARD DISCLOSURESMulti Bintang Indonesia Sustainability Reporting 2015

Multi Bintang Sustainability Reporting 2015 in accordance to the option “Core”:

• General Standard Disclosures: G4-1, G4-3 up to G4-34, G4-56.

• Specific Standard Disclosures (DMA and Indicators) focus only on Material Aspects. For each identified Material Aspect, MBI discloses the Generic DMA and at least one Indicator.

• MBI’s 15 Material Aspects: (1) Governance and Business Conduct, (2) Sourcing Sustainably, (3) Water Management, (4) Energy and Carbon Footprint, (5) Waste Management, (6) Occupational Health and Safety, (7) Employment Practices (including training and development and employee engagement), (8) Responsible Consumption (including staff alcohol responsibility and responsible marketing), (9) Economic impact, (10) Regulatory compliance and excise, (11) Product safety, quality and hygiene (including transparent ingredient information), (12) Product innovation, (13) Community development and investment, (14) Stakeholder communications, (15) Public policy advocacy

GENERaL STaNdaRd dISCLOSuRE

No. IndexGRI G4

IndexDescription of the Disclosure

GRI G4 Indicator Applicability indicated

by MBI

Location of the Disclosure(#page and

/or #web link)

Strategy and Analysis

G4-1Statement from the most senior decision-maker of the organization (such as CEO,

chair, or equivalent senior position) about the relevance of sustainability to the

organization and the organization’s strategy for addressing sustainability.FuLLy APPLIED 6, 7

Organizational Profile

G4-3 Report the name of the organization. FuLLy APPLIED 5

7 G4-4 Report the primary brands, products, and services. FuLLy APPLIED 8

G4-5 Report the location of the organization’s headquarters. FuLLy APPLIED 5

G4-6Report number of countries where the organization operates, and names of countries

where either the organization has significant operations or that are specifically

relevant to the sustainability topics covered in the report.FuLLy APPLIED 5

11, 13 G4-7 Report nature of ownership and legal form. FuLLy APPLIED 9

9 G4-8Report markets served (including geographic breakdown, sectors served, and types of

customers and beneficiaries).FuLLy APPLIED 8

83

8, 10, 14 G4-9 Report scale of the reporting organization. FuLLy APPLIED 8, 9

70 G4-10

a. Report the total number of employees by employment contract and gender.

b. Report the total number of permanent employees by employment type and

gender.

c. Report the total workforce by employees and supervised workers and by gender.

d. Report the total workforce by region and gender.

e. Report whether a substantial portion of the organization’s work is performed by

workers who are legally recognized as self-employed, or by individuals other than

employees or supervised workers, including employees and supervised employees

of contractors.

f. Report any significant variations in employment numbers (such as seasonal

variations in employment in the tourism or agricultural industries).

FuLLy APPLIED 72

71 G4-11 Report percentage of total employees covered by collective bargaining agreement. FuLLy APPLIED 72

23 G4-12 Describe the organization´s supply chain. FuLLy APPLIED 18, 19

G4-13Report changes regarding the organization’s size, structure, ownership, or its supply

chain.FuLLy APPLIED 5, 6

17 G4-14Explanation whether and how the precautionary approach or principle is addressed by

the organization.FuLLy APPLIED 14

G4-15List externally developed economic, environmental, and social charters, principles, or

other initiatives to which the organization subscribes or endorses.FuLLy APPLIED 29

32, 33 G4-16 Report Memberships. FuLLy APPLIED 29

Identified Material Aspects and Boundaries

82 G4-17 List all entities / Report whether any entity is not covered in the report. FuLLy APPLIED 80

83 G4-18 Report process for defining report content and aspect boundaries. FuLLy APPLIED 80

20 G4-19 List all the material Aspects identified in the process for defining report content. FuLLy APPLIED 17

18 G4-20 Report for each material Aspect, report the Aspect Boundary within the organization. FuLLy APPLIED 16

19 G4-21 Report for each material Aspect, report the Aspect Boundary outside the organization. FuLLy APPLIED 16

21 G4-22Report the effect of any restatements of information provided in previous reports, and

the reasons for such restatements.FuLLy APPLIED 17

22 G4-23Report significant changes from previous reporting periods in the Scope and Aspect

Boundaries.FuLLy APPLIED 17

Stakeholder Engagement

28 G4-24 Provide a list of stakeholder groups engaged by the organization. FuLLy APPLIED 24

27 G4-25 Report the basis for identification and selection of stakeholders with whom to engage. FuLLy APPLIED 23



84

30 G4-26Report the organization’s approach to stakeholder engagement, including frequency

of engagement by type and by stakeholder group, and an indication of whether any of

the engagement was undertaken specifically as part of the report preparation process.FuLLy APPLIED 24

29 G4-27

Report key topics and concerns that have been raised through stakeholder

engagement, and how the organization has responded to those key topics and

concerns, including through its reporting. Report the stakeholder groups that raised

each of the key topics and concerns.

FuLLy APPLIED 24

Report Profile

2 G4-28 Reporting period (such as fiscal or calendar year) for information provided. FuLLy APPLIED 5

3 G4-29 Date of most recent previous report (if any). FuLLy APPLIED 5

G4-30 Reporting cycle (such as annual, biennial). FuLLy APPLIED 5, 6

G4-31 Provide the contact point for questions regarding the report or its contents. FuLLy APPLIED 5

4, 6 G4-32 Report the "in accordance" option and GRI content index for chosen option. FuLLy APPLIED 5

G4-33Report policy and current practice with regard to seeking external assurance for the

report.FuLLy APPLIED 5

Governance

16 G4-34Report the governance structure of the organization, including committees of the

highest governance body. Identify any committees responsible for decision-making

on economic, environmental and social impactsFuLLy APPLIED 13

Ethics and Integrity

67 G4-56Describe the organization’s values, principles, standards and norms of behavior such

as codes of conduct and codes of ethics.FuLLy APPLIED 71

SPECIfIC STaNdaRd dISCLOSuRES

No.Index

GRI G4 Index

Location of the Disclosure (#page and /or web link)GRI G4 Indicator

Applicability indicated by MBI

External Assurance

ENVIRONMENTAL: Protecting water Resources

G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and

responds to its actual and potential material economic, environmental and social

impactsFuLLy APPLIED 30

34 G4-EN8 Total water withdrawal by source FuLLy APPLIED 31

G4-EN9 Water sources significantly affected by withdrawal of water FuLLy APPLIED 31, 32, 33, 34

35 G4-EN10 Percentage and total volume of water recycled and reused FuLLy APPLIED 31

ENVIRONMENTAL: Effluents and waste

36, 39 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and


impactsFuLLy APPLIED 35, 36

37 G4-EN22 Total water discharge by quality and destination. FuLLy APPLIED 35

85

40 G4-EN23 Total weight of waste by type and disposal method FuLLy APPLIED 36

ENVIRONMENTAL: Energy




43 G4-EN3 Energy consumption within the organization FuLLy APPLIED 40

44 G4-EN6 Reduction of energy consumption FuLLy APPLIED 40

ENVIRONMENTAL: Emission




41 G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) FuLLy APPLIED 39

42 G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) FuLLy APPLIED 39

ENVIRONMENTAL: Material

45 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and



46, 47 G4-EN2 Percentage of materials used that are recycled input materials FuLLy APPLIED 42, 43

SOCIAL: Labor Practices and Decent work




76 G4-LA1Employment

Total number and rates of new employee hires and employee turnover by age group,

gender, and region.FuLLy APPLIED 72, 73

75, 77 G4-LA2Employment

Benefits provided to full-time employees that are not provided to temporary or part-

time employees, by significant locations of operationFuLLy APPLIED 73, 74

78 GA-LA4Labor/Management Relations

minimum notice periods regarding operational changes, including whether these are

specified in collective agreementsFuLLy APPLIED 74

62, 72 G4-LA5

Occupational Health and Safety

Percentage of total workforce represented in formal joint-management-worker health

and safety committees that help monitor and advice on OCCUPATIONAL health and

safety programs.

FuLLy APPLIED 59, 72

63 G4-LA6Occupational Health and Safety

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism,

and total number of work-related fatalities, by region and by gender.FuLLy APPLIED 59

73 G4-LA8Occupational Health and Safety

Health and safety topics covered in formal agreements with trade unions.FuLLy APPLIED 72



86

80 G4-LA9Training and Education

Average hours of training per year per employee by gender, and by employment

category.FuLLy APPLIED 74, 75

81 G4- LA11Percentage of employees receiving regular performance and career development

reviews, by gender and by employee categoryFuLLy APPLIED 76

74 G4-LA12

Diversity and Equal Opportunity

Composition of governance bodies and breakdown of employees per employee

category according to gender, age group, minority group membership, and other

indicators of diversity

FuLLy APPLIED 72

SOCIAL: human Rights




79 G4-HR4

Freedom of Association and Collective Bargaining

Operations and suppliers identified in which the right to exercise freedom of

association and collective bargaining may be violated or at significant risk, and

measures taken to support these rights

FuLLy APPLIED 74

48 G4-HR10Supplier Human Rights Assessment

Percentage of new suppliers that were screened using human rights criteriaFuLLy APPLIED 45

SOCIAL: Society




64 G4-SO1Local Communities

Percentage of operations with implemented local community engagement, impact

assessments, and development programs.FuLLy APPLIED 65

69 G4-SO4Anti-corruption

ommunication and training on anti-corruption policies and procedures FuLLy APPLIED 71

55 G4-PR9Compliance

Monetary Value of Significant fines for non-compliance with laws and regulations

concerning the provision and use of products and servicesFuLLy APPLIED 11

G4-DMA b.

Supplier Assessment for Impacts on Society

Provides narrative information on how an organization identifies, analyzes, and


impacts

FuLLy APPLIED 44

49 G4-SO9Supplier Assessment for Impacts on Society

Percentage of new suppliers that were screened using criteria for impacts on societyFuLLy APPLIED 45

SOCIAL: Product Responsibility

53, 54 G4-DMA b.Provides narrative information on how an organization identifies, analyzes, and



87

G4 – PR3

Product and Service Labeling

FuLLy APPLIED52

TYPE OF PRODUCT AND SERVICE INFORMATION REQUIRED BY THE

ORGANIZATION’S PROCEDURES FOR PRODUCT AND SERVICE INFORMATION

AND LABELING, AND PERCENTAGE OF SIGNIFICANT PRODUCT AND SERVICE

CATEGORIES SUBJECT TO SUCH INFORMATION REQUIREMENTS

a. Report whether the following product and service information is required by the

organization’s procedures for product and service information and labeling:

b. Report the percentage of significant product or service categories covered by and

assessed for compliance with such procedures.

49

G4 – PR6

Marketing Communications

FuLLy APPLIED31, 56, 58

SALE OF BANNED OR DISPUTED PRODUCTS

a. Report whether the organization sells products that are: Banned in certain markets;

The subject of stakeholder questions or public debate

b. Report how the organization has responded to questions or concerns regarding these

products.

26, 53, 54

55 G4 – PR9Compliance: MONETARY VALUE OF SIGNIFICANT FINES FOR NON-

COMPLIANCE WITH LAWS AND REGULATIONS CONCERNING THE

PROVISION AND USE OF PRODUCTS AND SERVICESFuLLy APPLIED 11

ECONOMIC: Procurement Practice




50 G4-EC9

Proportion of spending on local suppliers at significant locations of operation. - Report

the percentage of the procurement budget used for significant locations of operation

spent on suppliers local to that operation (such as percentage of products and services

purchased locally); b. Report the organization’s geographical definition of ‘local’; c.

Report the definition used for ‘significant locations of operation’.

FuLLy APPLIED 46

ECONOMIC: Economic Performance

15 G4-DMA b.Describe why the Aspect is material. As a minimum, this includes information on the

organization’s impacts, whether positive or negative, related to that Aspect.FuLLy APPLIED 11

G4-EC1 Direct economic value generated and distributed. FuLLy APPLIED 11

ECONOMIC: Indirect Economic Impacts

G4-DMA-a.

Describe work undertaken to understand indirect economic impacts at national,

regional, or local level.

Explain the significance of the indirect economic impacts in the context of external

benchmarks and stakeholder priorities, such as national and international standards,

protocols, and policy agendas.

FuLLy APPLIED 22

26 G4-EC8 Significant indirect economic impacts, including the extent of impacts FuLLy APPLIED 22


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