ustainability report 2012s brewing a better...

Improve Empower Impact

Brewing a Better Future

Sustainability Report 2012

19BRANDS

Heineken®

ENJOYED IN

178COUNTRIES

491EMPLOYEES

19BRANDS

Heineken®

ENJOYED IN

178COUNTRIES

491EMPLOYEES

Company ProfileHEINEKEN USA, Inc., formed in 1995, acts as an operating company of HEINEKEN International. Our flagship Heineken® brand began selling in the U.S. in the 1880s. The company is the number two beer importer in the U.S. market and holds approximately a 4% market share. HEINEKEN USA has two corporate offices, in New York City and White Plains, N.Y., and three regional sales offices, in Atlanta, Ga., Downers Grove, Ill., and Long Beach, Calif. HEINEKEN USA imports beer from five breweries in three countries through more than 20 points of entry to the U.S. The HEINEKEN portfolio in the U.S. includes 19 brands: Heineken, Heineken Light, Heineken Dark and Amstel Light, Amstel Wheat, and Buckler (The Netherlands), Dos Equis Ambar, Dos Equis Lagar, Indio, Tecate, Tecate Light, Sol, Bohemia and Carta Blanca (Mexico), Newcastle Brown Ale, Newcastle Summer Ale, Newcastle Werewolf, Newcastle Winter IPA and Newcastle Founder’s Ale (UK).

Welcome to Our 2012 Sustainability ReportWe at HEINEKEN USA are committed to our global initiative to become the world’s greenest international brewer. This report describes some of our key efforts in 2012, the third year of our Brewing a Better Future journey.

ContentsCEO Message 01Brewing a Better Future 02 Foreward 03Value Chain 04

Green Brewer 06Green Commerce 07Engaging Employees 08Heineken Cares 09Responsible Consumption 10Partnerships for Progress 11

Enabling our Journey 12Stakeholder Engagement and Dialogue 13Benchmarks and Achievements 14The Years Ahead 16

2 HEINEKEN USA Sustainability Report 2012

Welcome

00

It has been three years since HEINEKEN launched Brewing a Better Future. In that time, we have created business priorities that integrate and in some cases rely on Brewing a Better Future for their success. Globally, our priorities are clear:

• GrowtheHeineken®brand

• Beconsumer-inspired,customer- orientedandbrand-led

• Capturetheopportunityin emerging markets

• Leveragethebenefitsof HEINEKEN’s global scale

• Drivepersonalleadership

• Embedandintegrate sustainabilty

To tackle these priorities, we renewed our commitment to our company’s culture and reinforced the challenger mindset. Nearly one third of our entire staff joined the organization in 2012. Thenewarrivalsandaclearpeople-focused agenda are fostering our culture of transparency, candor and innovation—valuable traits for any entrepreneurial company and critical as we approached our business objectives in a new way. Our senior leaders, for example, have agreed to incorporate sustainability targets into their performance reviews. One of their objectives is to encourage our suppliers to join our sustainability journey by signing our supplier code, which commits them to running their businesses sustainably and helps us to evaluate risks. Every HEINEKEN department—from supply chain to finance—has a sustainability agenda. Its objectives are monitored by the management team members, who themselves have sustainability targets.

“We are very grateful to those people and organizations that not only share in our success but also respond candidly to our reputation research, helping us identify areas in which we can improve.”

Sustainability is often misconstrued as merely being “greener.” In the beer business, being responsible is equally important. Since its inception in 1864, HEINEKEN has promoted the notion that beer can be a part of a healthy and balanced lifestyle when consumed in moderation. From our beer trade group, the Beer Institute’s advertising and marketing code, on down to our local brand promotions, we remind consumers that our products should be enjoyed responsibly.

Of course, we would not be successful in our Brewing a Better Future agenda or our business without you, our stakeholders. We are very grateful to those people and organizations that not only share in our success but also respond candidly to our reputation research, helping us identify areas in which we can improve.

On a final note, I would like to thank the employees who worked to create this report and achieve the successes on these pages. I’m convinced our program and company changes are bringing new creativity and momentum to our sustainability agenda and to our business.

Regards, Dolf van den Brink President & CEO

HEINEKEN USA 01 Sustainability Report 2012

CEO Message

Brewinga Better Future

To Be theWorld’s Greenest Brewer

Partnershipsfor Progress

ResponsibleConsumption

HEINEKENCares

EngagingEmployees

GreenCommerce

GreenBrewer

Improve Empower Impact

Governance, Senior Management Incentives,Reporting and Transparency, Supplier Code, Communication and Engagement

Continuously improvethe environmental

impact of our brandsand business

Empower ourpeople and thecommunities in

which we operate

Positively impactthe role of beer

in society

Brewing a Better FutureBrewing a Better Future is HEINEKEN’s long-term, integrated approach to creating genuine shared value for all our stakeholders. Sustainability is part of how we manage our business.

Brewing a Better Future was introduced in April 2010 and born out of close discussion with our stakeholders. It has provided the company with a roadmap and reflects our ambition to become an even greener business.


Overview

Looking ahead to Brewing a Better Future in 2013-2015, we have reviewed our priorities and created a more focused sustainability agenda. Read more on pages 16 and 17.

Foreward

“In year three of our Brewing a Better Future journey, we’ve begun to build momentum.”

Welcome to the HEINEKEN USA 2012 Sustainability Report. I always enjoy this report, as it wraps our many programs into one great sustainability story.

In last year’s report we assessed how we measured up against our Brewing a Better Future agenda. In 2012, HEINEKEN USA continued to build on the three strategic imperatives:

• TocontinuouslyIMPROVEthe environmental impact of our brands and business

• ToEMPOWERourpeopleandthe communities in which we operate

• TopositivelyIMPACTtheroleof beer in society

There are so many surprising ways for an importer like HEINEKEN USA to give the environment a hand. Our corporate offices in White Plains, N.Y., renovated in 2011, earned LEED Gold certification from the U.S. Green Building Council in 2012. Every year, our colleagues in the Netherlands, Mexico and the U.K. search relentlessly for ways to use less heat, electricity and water in their breweries. Thanks to their efforts in 2012, we were able to take several new steps to IMPROVE the energy efficiency it takes to create a bottle of Heineken.

In 2012, we sought to EMPOWER our people and the communities in which we operate. We continued to support the work of the Health Alliance on Alcohol to prevent underage drinking. Our employees and consumers

volunteered and gave generously to local charitable causes, through programs like Days of Giving and HEINEKEN with a Heart. And we partnered with our 491 employees in the fall of 2012 to donate more than $100,000 to help communities ravaged by Hurricane Sandy.

Just one measure of the IMPACT that our beer plays in society is our expanded engagement with Taxi Magic, an app that helps consumers find and call a cab. HEINEKEN USA supported more than 100 events sharing this practical app, contributing to a 78% increase in rides. Additionally, 2012 market research shows that we are hitting the right audience. The most frequent users of the Taxi Magic app used it to get home safely after having a drink on a night out.

Finally, Brewing a Better Future would not be sustainable without the right ENABLERS in our structure. Every one of our senior managers agreed to make sustainability one of the five merit areas evaluated in their 2012 performance review. We also asked our suppliers to sign a new code committing to uphold our standards of integrity, environmental sensitivity and human rights.

These achievements—and many more you’ll read about in this report—are evidence that in year three of our Brewing a Better Future journey, we’ve begun to build momentum.

Stacey Tank Senior Vice President Corporate Relations


U.S.GLOBAL

U.S.GLOBAL

Producing bottles, cans and kegsBeer is packed in cans, bottles and kegs. Reducing the environmental impact of our packaging can be achieved by optimizing the production process, changing the designs and increasing the recycling and reuse rates. HEINEKEN is working to identify improvement opportunities in the packaging mix.

Growing cropsOur main raw materials are barley and hops. Barley for malting represents about 1.4% of all the grains that are harvested globally, and HEINEKEN is one of the world’s top three users of malting barley. Weco-operatewithindustry initiatives such as the Sustainable Agriculture Initiative (SAI) to address all angles of sustainable agriculture.

Malting barleyHEINEKEN malts barley in its own malteries and in those of third parties. The process consumes energy and water, so HEINEKEN implements active energy and water reduction programs in its own malteries.

Brewing beerThe brewing process also consumes energy and water. Reducing energy consumption means increasing energy efficiency and switching to alternative energy sources. Water reduction is mainly achieved by optimizing the brewing process. Every brewery has an improvement target.

Value ChainFrom barley to bar, we set improvement targets throughout the value chain. We also calculate the carbon footprint for our value chain, to better understand the hotspots and identify areas for improvement.

Packaging materialsAgriculture Malting Brewing


Overview

U.S.GLOBAL

U.S.GLOBAL

• Agriculture

• Malting and adjunts

• Beverage production

• Packaging material production

• Distribution

• Cooling

From barley to bar

7%4%

38%15%

26%

USA10%

DistributionAfter the beer is packaged, it is shipped to a warehouse or customer using several forms of transport, including truck, inland barge and sea freight. We at HEINEKEN USA identify efficiencies in our distribution by selecting the most optimal form of transport and route to consumers.

Cooling and recycling Beer is cooled at the point of consumption via refrigerators or draught equipment. While HEINEKEN USA buys few refridgerators due to legal restrictions, all refrigerators purchased now comply with defined green standards.

Responsible consumptionWe have promoted the responsible consumption of beer for decades. In the 1960s, HEINEKEN USA introducedself-regulatorycodes banning advertisements that might appeal to those under the legal drinking age. Today our standards for responsible commercial communication have evolvedintoafar-reachingset of rules.

Distribution of beer Customers Consumers

Carbon footprint breakdown of HEINEKEN USA


“An increase in our fleets miles per gallon is sustainable for both the environment and our business.”

HEINEKEN USA achieves LEED GoldIn July 2012, the U.S. Green Building Council awarded HEINEKEN USA’s headquarters in White Plains, N.Y., LEED Gold certification. The council acknowledged that our renovation shrank our carbon footprint and preserved natural resources. The new offices use 32% less water, are illuminated by daylight and super-efficient LEDs and incorporate non-toxic, low-emission materials. More than 85% of the materials were recycled from the original building. We even reduced the amount of actual space we use, from 60,000 square feet to 50,000.

Green Brewer

Jose Luis Velasquez Senior Vice President The People Department


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prov

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VIEWS OF THE‘SUNRISE’ CAMPAIGN IN THREE WEEKS

3m

MPG for new �eet vehicles up 18.3%

• LEED Gold certification for White Plains headquarters

LEED GOLDCERTIFICATION FOR WHITEPLAINS HEADQUARTERS

MPG FOR NEWEMPLOYEEFLEETVEHICLES UP18.3%

Over 100 of stakeholders in U.S. research

UN Global Compact

World Economic Forum

U.S. EPA SmartWay

U.S. Customs & Border Patrol CT-PAT

HEINEKEN USA INCREASED ENGAGEMENT WITH TAXI MAGIC, CONTRIBUTING TO A 78% INCREASEIN RIDES

100% OF EMPLOYEES ARE TIPS TRAINED

Being a green brewer is about how we operate inside as well as out. That’s why HEINEKEN USA examines its own employee practices to see how they can be improved. Green OfficesIn 2012, our headquarters in White Plains, N.Y., was certified by the U.S. Green Building Council as meeting the Leadership in Energy and Environmental Design (LEED) Gold Standard. Our other key offices around the country are in buildings that meet Energy Star Standards. Green Fleet We’ve again lifted the efficiency of our corporate automobile fleet, from an average of less than 19 miles per gallon two years ago to 20.1 miles per gallon in 2012.

Vehicles that were cycled into the 2012 fleet showed a healthy 18.3% average jump in MPG. We continued to push for improvement in vehicle choices offered to employees in the 2013 cycle. For example we now offer four-wheeldrivevehiclestoemployeeslivinginsnow-beltstates.Andhybridcars now make up 7% of our total fleet.

In 2011, HEINEKEN USA committed to working with vendors who had earned the Environmental Protection Agency’s SmartWay Transport certification. In 2012, we ourselves were SmartWay Transport certified. Joining this program as a shipper commits us to meeting not only its current benchmarks but also the tougher standards it will set in the future.

OF NEWFRIDGESARE GREEN

93%GLOBALY

SUSTAINABLEPACKAGING IDEASSUBMITTEDTO OUR GLOBAL OPEN INNOVATIONPLATFORM

130

We at HEINEKEN USA also track our carbon footprint. Our 2011 results offered an opportunity to improve, and we did just that. We’ve piloted a number of new ports in order to get our products closer to customers and consumers. Initial results have been positive overall. And we’ll make additional changes in 2013.

Our 2012 carbon footprint increased by 2%. What happened? Our early analysis shows that two key events in our intermodal transport—how our beer moves around the country—contributed. First, we had a spike in sales of our Dutch portfolio in the first quarter. Second, HEINEKEN USA conducted a voluntary national brown bottle recall. As with any recall, it meant a lot of product movement to replenish the recalled product.

Deeper analysis is underway to isolate and evaluate the positives and unexpected negatives. The uptick in 2012 will help us better understand the levers that affect our carbon footprint. We’ll use what we learn to continue improving.

Green Commerce

“HEINEKEN USA carefully looks across its entire supply chain for efficiencies that are both good business and environmentally friendly..”

Alex JacksonSenior Vice President

Operations


Im

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Breweries Continue to Improve Year Over Year HEINEKEN USA is an import business. We benefit enormously from the hard work done by our brewery colleagues overseas. In the U.K., our Tadcaster brewery reduced their water usage from 4.92 to 4.86 hectoliters of water per hectoliter of beer, through changes to water handling in the bottle pasteurizer. Water use for that function was reduced by an astonishing 30%.In Monterrey, Mexico, our brewery team began heating one of their four storage tanks of fuel oil with water from our boilers, reducing the megajoules (MJ) of steam energy used by 8%. And in the Netherlands, our water usage at the Zoeterwoude Brewery is only 3.5 hectoliters of water per hectoliter of beer. Since 2008, water usage has declined by 4%.

“HEINEKEN USA employees are innovative and regularly challenge the status quo. It is inspiring and impactful.”

MARKETSTOOK PART INVOLUNTEERINGOR FUNDRAISINGACTIVITIES

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3,000

[[Infographics]]

• 20 Heineken with a Heart events raised $130,000

• 75 employees volun-teered for our White Plains Day of Giving

20 HEINEKEN WITH A HEART EVENTS RAISED$130,000

75EMPLOYEES VOLUNTEERED FOR OURWHITE PLAINS DAY OF GIVING

CLIMATE COUNCILSURVEY ADVISES THEMANAGEMENT

TEAM

INNOVATION ENCOURAGES

TRANSPARENCY AND OBSTACLE BUSTING

Women’s Leadership ForumResearchers have found that companies that succeed at boosting the number of women in their senior management tend to perform better. The HEINEKEN USA Women’s Leadership Forum offers women throughout our company training and networking opportunities and has helped female employees connect with mentors. Co-founded in 2007 by Senior Vice President, Julie Kinch and Market Manager Lynn Severson, the forum has grown modestly but steadily thanks to the efforts of other HEINEKEN USA leaders like Kelly Drew, Gwen Kinsella and Julienne Loaiza. In 2012, it joined the

Engaging Employees

Julie KinchSenior Vice President Legal


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Brewing a Better Future has become part of how we think and act every day.

Our internal policies safeguard employees and others and help to ensure a safe, healthy working environment for all. In 2012, two new global policies were introduced. The first is our new Global Occupational Health and Safety Policy, which takes the International Labor Organization standards and recommendations as a reference to set internal objectives. The second policy, our new Employees’ & Human Rights Policy was effective as of January 1, 2012, and endorses the principles enshrined within the Universal Declaration of Human Rights and the Core Conventions of the International Labor Organization. The policy lays out 11 clear standards on employees’ and human rights, includingnon-discrimination,forcedlabor and harassment.

At HEINEKEN USA employees receive regular training on laws, ethics and how to recognize the effects of alcohol and prevent drunk driving. We strive to teach those policies—some of which were updated in 2012—in innovative ways that support our culture.

A special “obstacle busting” team led by human resources and fully supported by our sales teams meets regularly to identify issues that stand between us and success. Team members then work across our organization to identify solutions, often with positive business and environmental impact.

The HEINEKEN USA management team meets regularly with an elected employee council, called the Climate Survey Advisory Council. The council holds the management team accountable to commitments it has made to employees.

Unique and transparentcommunication channels like these have led to successful and sustainable business practices. In 2012, for example, more of our field sales managers began viewing and revising documents digitally, on papersaving tablet computers. We expect 150 field managers to be using iPads by the end of 2013.

Our company can’t create a more sustainable world on its own. So at HEINEKEN USA, we look for ways to empower others.

We start with our employees. In 2012 we continued our annual Day of Giving program, where in our employees volunteer for a local charity.Seventy-fiveHEINEKENUSAemployees from the White Plains and New York City offices painted railings, spruced up a gazebo and stained a new sun shelter at Hudson Park in New Rochelle, N.Y. A parks official estimated that our work saved the city at least $15,000.

In the fall of 2012, HEINEKEN USA employees turned their attention to east coast towns and cities recovering from Hurricane Sandy. The management team offered a five-to-onematchforallemployeedonations to the Red Cross Sandy Relief fund. In total, HEINEKEN USA donated $100,000 after the storm.

We also harnessed the generosity of our consumers, through a retail program we ran in partnership with Outback Steakhouse called HEINEKEN with a Heart. A total of nearly 3,000 people attended 20 HEINEKEN with a Heart events in 2012. They enjoyed our beers, tasted Outback’s appetizers and raised a total of $130,000 to benefit more than a dozen charities across the U.S.


27

3,000

[[Infographics]]

• 20 Heineken with a Heart events raised $130,000

• 75 employees volun-teered for our White Plains Day of Giving

20 HEINEKEN WITH A HEART EVENTS RAISED$130,000

75EMPLOYEES VOLUNTEERED FOR OURWHITE PLAINS DAY OF GIVING

CLIMATE COUNCILSURVEY ADVISES THEMANAGEMENT

TEAM

INNOVATION ENCOURAGES

TRANSPARENCY AND OBSTACLE BUSTING

HEINEKEN Cares

“Sustainability isn’t just about the environment. It is a broad business initiative with programs like our retail partnership program, HEINEKEN with a Heart.”

Scott Blazek Senior Vice President

Sales


Em

pow

er

national Network of Executive Women, bringing our employees access to more local events and unique networking opportunities. And at our national sales conference, the group held a meeting and panel discussion attended by more than 100 people—nearly 40 of them were men. Says Severson: “Whenever you bring together a group of like-minded people, you feel that energy, and it’s empowering.”

“Our Heineken consumer is a Man of the World who looks for smart ways to help him navigate in any situation. Taxi Magic is a great tool to help him open his world.”

1864 Responsibility AwardHEINEKEN USA holds itself to a high standard for business practices relating to responsible consumption and challenges its business partners to do the same. The 1864 Award for Responsibility is given each year to the distributor partner who best exemplifies our high standards.

Our 2012 winner, DBI Distributing of Sacramento, Calif., and finalists Harbor Distributing of Anaheim, Calif. and Andrews Distributing of Dallas, Texas all follow rigorous internal policies that promote responsible alcohol use and external practices that discourage underage drinking. These leaders also promote safe transportation alternatives for consumers who choose to drink, like our HEINEKEN USA sponsored Taxi Magic program.

Responsible ConsumptionLesya LysyjSenior Vice PresidentMarketing

Stacey Tank Senior Vice President

Corporate Relations


Im

pact

VIEWS OF THE‘SUNRISE’ CAMPAIGN IN THREE WEEKS

3m

MPG for new �eet vehicles up 18.3%

• LEED Gold certification for White Plains headquarters

LEED GOLDCERTIFICATION FOR WHITEPLAINS HEADQUARTERS

MPG FOR NEWEMPLOYEEFLEETVEHICLES UP18.3%

Over 100 of stakeholders in U.S. research

UN Global Compact

World Economic Forum

U.S. EPA SmartWay

U.S. Customs & Border Patrol CT-PAT

HEINEKEN USA INCREASED ENGAGEMENT WITH TAXI MAGIC, CONTRIBUTING TO A 78% INCREASEIN RIDES

100% OF EMPLOYEES ARE TIPS TRAINED

Enjoy ResponsiblyResponsible consumption is a cornerstone of our business, and we drive home the message to consumers, employees and even our distributer partners.

HEINEKEN USA employees participate in a program called TIPS —“Training for Intervention Procedures”— to recognize the potentially harmful effects of alcohol. Those who drive mustparticipateinanonlinesafety-training regimen that emphasizes a prohibition on drinking and driving.

HEINEKEN USA ad campaigns adhere to rules for responsible commercial communications set by HEINEKEN globally. The campaigns voluntarily comply with the advertising and marketing code of the Beer Institute, the beer trade group, and are periodically audited by the U.S. Federal Trade Commission. We internally review and respond to consumer criticisms about our ads. And the Beer Institute reviews and publishes responses to complaints about ads. Its code was updated in 2012 to support responsible marketing in social media.

HEINEKEN goes beyond policies and codes to promote modern, practical solutions for consumers. In 2012 we integrated Taxi Magic into more than 100 events across multiple brands. This increased engagement with Taxi Magic contributed to a 78% increase in rides.

Responsible MarketingOur rules on responsible commercial communication help everyone involved in marketing and selling our products to ensure we do not contribute to excessive consumption or misuse. Recognizing the need for more detailed guidance in the digital environment, HEINEKEN introduced new rules on digital commercial communication in June 2012. These rules cover areas such as video use, online privacy and security, with a specific focus on age verification, particularly in social media.

encourage them to talk about alcohol with their children. And the alliance not only gives us opportunities to work with our local community, it offers our distributor partners resources they can use to help underage drinking in communities outside our immediate reach.

As part of our serious commitment to responsible advertising, we maintain a partnership with the Effie organization. The Collegiate Effie PSA Challenge underscores the importance of public-servicemessagingbychallenging students 21 and older to develop creative marketing campaigns to promote responsible consumption. The campaigns are built around the Heineken® brand.

At a conference organized by the International Center for Alcohol Policies in Washington D.C. in October 2012, HEINEKEN joined 11 other global alcohol businesses to launch a wide-rangingsetofcommitmentsaimed at reducing the harmful use of alcohol. These commitments cover five key areas, including underage drinking, drinking and driving, and responsible product innovations. They will be implemented throughout the HEINEKEN business over the next five years.


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FOR NEARLY A DECADE

HEINEKENUSA ANDCOMMUNITYPARTNERS HAVEPROVIDED THOUSANDSOF CONSUMERS FREE RIDES ON NEW YEAR’S EVE

COMPANIESJOINED TOGETHERAND LAUNCHED

GLOBALCOMMITMENTSTO REDUCEHARMFUL USEOF ALCOHOL

12

Partnerships for Progress

“Engaging the right partners across government, industry and community makes our projects smarter and the results stronger.”

Stacey Tank Senior Vice President

Corporate Relations


Im

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New Year. Safe RideFor nearly a decade, HEINEKEN USA has partnered with our local community in White Plains, N.Y. to provide to consumers a free, safe ride home on New Year’s Eve. The effort involves the Westchester County district attorney and executive’s office the City of White Plains mayor, police and business improvement district and the Westchester County Chapter of MADD. A press conference was held to promote the program in early December, and starting at 11 p.m. on New Year’s Eve, our drivers provided 160 free rides, ferrying 350 people home safely.

Partnerships for Progress HEINEKEN USA fosters special partnerships to magnify its positive impact on society. Our philosophy is to focus on making a difference where our employees live and work.

One such partnership is the Health AllianceonAlcohol,ourseven-yearproject with White Plains Hospital, New York Presbyterian Healthcare System and Morgan Stanley Children’s Hospital. The HAA provides practical tools to parents to

100% OF U.S.SENIOR MANAGERS AGREED TO SUSTAINABILITY TARGETSIN 2012

HEINEKEN USA REACHED 100%COMPLIANCEWITH THE SUPPLIER CODE GOVERNANCE

Enabling Our JourneyBrewing a Better Future will only succeed if the preconditions for success are defined and in place. With our enablers, we are making sure that our culture and organization can support our ambitions.

Extending Our Influence Through Our Supplier Code HEINEKEN is committed to making a positive contribution to society through all its global operations. We at HEINEKEN USA expect our suppliers to help us to fulfill this commitment by actively supporting and respecting our values in their own business practices. In 2011 we asked them to sign a new code agreeing to uphold our standards of integrity, environmental sensitivity and human rights. By the end of 2012, 100% of applicable HEINEKEN USA suppliers were in full compliance with our supplier code guidelines.

We monitor compliance with our code through a collaborative platform called EcoVadis. Suppliers identified as high risk are subject to audit by a third party. In 2012 our global team conducted nine audits—all outside of the U.S.—finding 37 minor, 41 major and zero criticalnon-compliances.Weadoptacontinuous improvement approach to achieving compliance, but may as a final resort cease to do business with non-compliantsuppliers.

Building Sustainability Into Objective SettingHEINEKEN wants sustainability to be expected behavior rather than an ad-hocactivitylinkedtoashort-termcash bonus. In 2012 100% of U.S. senior managers agreed to a sustainability objective as one of the five merit areas evaluated on their annual appraisal. An overwhelming majority hit the target.

Better Reporting With Green Gauge 2.0Launched in 2011, the Green Gauge scorecard allows us to monitor and report quarterly progress on sustainability initiatives at all levels of the business. To improve efficiency and reporting quality, we rolled out Green Gauge 2.0 in 2012. This electronic platform is quicker, more accurate and tightly integrated with other existing reporting tools within HEINEKEN.

Published ReportsAs part of our commitment to transparency in reporting, HEINEKEN published a 2012 Global Sustainability Report. In 2012, 32 operating companies across the world joined the U.S. in releasing sustainability reports or fact sheets for the previous year.

“HEINEKEN is fully committed to aligning our vendors with our sustainability agenda.”

Gabriele GiudiciSenior Vice President, Finance


Other information


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OVER100 OFSTAKE HOLDERSIN U.S. RESEARCH

UN GLOBAL COMPACTWORLDECONOMICFORUMU.S. EPASMARTWAYU.S. CUSTOMS& BORDERPATROL CT-PAT

BEVERAGE INDUSTRY

ENVIRONMENTAL ROUNDTABLE

INTERNATIONAL CENTER FOR

ALCOHOL POLICY

UN GLOBAL COMPACT

WORLDECONOMIC

FORUM

U.S. EPASMARTWAY

U.S. CUSTOMS& BORDER

PATROL CT-PAT

Stakeholder Engagement and DialogueOur stakeholders are critical to our Brewing a Better Future journey. They help us stay focused and tell us when they feel we are moving off track. We communicate and engage with stakeholders in three ways: reputation research, expert meetings and ongoing dialogue.

HEINEKEN’s reputation research survey gives a wide range of stakeholders, including customers, governments and NGOs, the opportunity to tell us what they think. Since 2010, more than 7,500 global stakeholders have shared their opinions, hundreds specifically about our U.S. business.

In January 2012, our global teams began the process of reviewing the Brewing a Better Future agenda (see page 16). To develop new commitments for 2013 through 2015, we facilitated a series of expert meetings. A diverse group of 22 stakeholders met with internal HEINEKEN specialists in Amsterdam to exchange knowledge and insight on our sustainability performance.

Feedback showed that, overall, HEINEKEN is seen as a trusted and respected company that delivers on its promises. However, it also identified areas for improvement.

Working With PartnersHEINEKEN believes that we can achieve more by working with partners and stakeholders than we can on our own. In 2012, we continued to invest time and energy in this philosophy.

Globally, HEINEKEN is a signatory to the United Nations Global Compact and an industry partner with the World Economic Forum. We are actively engaged in a growing number of organizations that support our aims for both business and society. Among them are the Beverage Industry Environmental Roundtable (BIER), a partnership of global beverage companies focusing on water stewardship, energy and climate change, and stakeholder engagement; and International Center for Alcohol Policies (ICAP), of which HEINEKEN is currently the chair.

HEINEKEN USA, meanwhile, is a member of the U.S. Environmental Protection Agency SmartWay program and the U.S. Customs and Border Patrol Customs Trade Partnership Against Terrorism program. We also work with a number of NGOs, such as the Congressional Hispanic Leadership Institute and the Congressional Black Caucus Foundation. The CBCF continues to be a great partner, providingHEINEKEN-sponsoredmusicscholarships annually.


Global Benchmarks• Dow Jones Sustainability Index

Although we were not included in the index, we received our highest score ever. Specifically, we achieved a significant improvement in our overall performance in packaging and standards for suppliers. We also remained best in class in the areas of water-relatedriskandresponsibilityfor alcoholic products.

• FTSE4Good We again maintained our inclusion in the index, achieving an absolute score of 4.1 out of 5, and a relative ‘food and beverage’ supersector score of 94 out of 100.

• Investors Carbon Disclosure Project We again participated in the Investors CDP, to measure and discloseourcarbon-reduction

In our quest to create real value for all our stakeholders, we are committed to improving the quality and quantity of data on which we report. This requires benchmarking our performance against other companies in the sector and publishing and sharing our findings.

Benchmarks and Achievements

In May, HEINEKEN received the prestigious GBCHealth Business Leadership Award for its “enduring commitment to and excellence in its support for health-related programming”.

activities. Our disclosure score improved by almost 30 points, from 59 to 88 points out of 100. In addition, we achieved a B performance rating versus D previously. Overall, this resulted in a CDP Benelux Leadership Index.

• CDP Water Disclosure For the second time, we took part in the CDP Water Disclosure Global Survey, reporting on water usage, the risks that water presents and responses to that risk. Our introduction of incentives for all senior managers linked to sustainability targets, including water, was highlighted as a “Leading Practice on Governance” in the Consumer Staples category.


Other information

• HEINEKEN USA’s renovated headquarters were awarded U.S. LEED (Leadership in Energy and Environmental Design) Gold certification by the U.S. Green Building Council.

• HEINEKEN USA achieved SmartWay Transport status with the U.S. EPA and commits to the continual effort to reduce carbon emissions from the ground transportation of its supply chain.

• HEINEKEN USA’s Women’s Leadership Forum event at our national meeting was attended by more than 20% of employees.

• HEINEKEN USA’s Supplier Code, which commits our suppliers to following sustainable business practices, was signed by 100% of applicable suppliers.

• 100% of HEINEKEN USA senior leaders agreed to meet sustainability targets as part of their objective setting, including the full management team.

• HEINEKEN USA employees, aided by agenerousfive-to-onematchprogram, donated $100,000 to help people affected by Hurricane Sandy.

Local Benchmarks and Achievements

• Through HEINEKEN with a Heart, donors gave a record $130,000 to more than a dozen local charities across the U.S.

• HEINEKEN USA effectively worked with government agencies and its distributor partners, and with consumers via social media, to successfully manage a voluntary national brown bottle recall.

• In the U.K., our Tadcaster brewery reduced its water usage from 4.98 to 4.86 hectoliters per hectoliter of beer through changes to water handling.


Water

Agriculture

Focus areas

Ways of working

Malting Brewing Packaging Distribution Customer Consumer

Sourcing

Responsible consumption

Values and Behaviours

CO2

U.S.GLOBAL

Based on dialogue with our stakeholders and insight into global trends, we have identified four key areas on which we will build a more focused second phase of our global Brewing a Better Future agenda: water, CO2, sourcing and responsible consumption. Each area is underpinned by our ways of working–living by our values, leading by example and working together to make a difference.

The Years Ahead


Other information

Water

Agriculture

Focus areas

Ways of working

Malting Brewing Packaging Distribution Customer Consumer

Sourcing

Responsible consumption

Values and Behaviours

CO2

U.S.GLOBAL

For full details of our 2020 ambitions and 2015 milestones, read our global online report.

Let Us KnowWhich aspects of Brewing a Better Future are working well? Where do you think we could do better? We’d love to hear from you, because your feedback will allow us to learn and improve. Stacey Tank Senior Vice President Corporate Relations

Lianne Visser Responsibility and Sustainability Manager Corporate Relations Email: [email protected]

Post: 360 Hamilton Ave,White Plains, NY 10601

Our Global Commitments for 2020

Water• Reduce specific water consumption

in the breweries by 25%• Aim for water compensation/

balancing by production units in water scarce and distressed areas

CO2• Reduce CO2 emissions:

– In production by 40% – Of our refrigerators by 50% – Of distribution by 20% in Europe

and the Americas

Sourcing• Deliver 60% of raw materials in

Africa via local sourcing• Aim for at least 50% of our main raw

materials from sustainable sources• Ongoing compliance with our

supplier code procedure

Responsible Consumption• Deliver on industry commitments• Make responsible consumption

aspirational through Heineken®

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

Global Trends: How They Impact Us, How We Impact Them The world is facing unprecedented global challenges, chief among them population growth, climate change, access to natural resources and food and water scarcity. These challenges will directly and indirectly affect businesses, both by threatening the availability of key resources and prompting increasingly demanding legislation.

HEINEKEN, too, will be affected if we do not act to mitigate the impact of these risks on our own organization. At the same time, we recognize the economic and social opportunities that lie in creating real, shared value for all our stakeholders.

Defining Our Priorities In 2012, we reviewed global trends as basis for defining our priorities. To help us in our assessment, we hosted a series of ‘expert meetings’ between February and April 2012. A diverse group of 22 stakeholders met with internal HEINEKEN specialists to share knowledge and insight on our sustainability performance and discuss how we can develop our thinking and plans.

Materiality Analysis These dialogue sessions were instrumental in helping us to build a prioritized materiality matrix containing the issues, risks and opportunities that are most relevant to our business and stakeholders.

Each of these four areas is supported by a number of concrete commitments. Each has milestones to be achieved by 2015. The 2020 ambitions that were set in 2010 remain unchanged, and they are integrated into our current agenda.

Looking to the FutureWith our new commitments in place, we are looking proactively to secure thelong-termcontinuityofourbusiness, while fulfilling our social and environmental obligations.

www.sustainabilityreport.HEINEKEN.com

HEINEKENUSA.comEnjoyHeinekenResponsibly.comHeineken.com

Please read HEINEKEN’s global Sustainability Report 2012 at:

A HEINEKEN USA publicationHEINEKEN USA 360 Hamilton AveSuite 1103White Plains, NY 10601 Telephone: (914)681-4100

ProductionHEINEKEN USA Corporate Relations

Stacey TankSenior Vice PresidentCorporate Relations

Jacqueline LeahyEmployee Communication ManagerCorporate Relations

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