Climate Change Data

Environmental Metrics

ESG Focus Areas

• Protecting water resources
• Reducing CO2 emissions
• Sourcing Sustainably
• Advocating responsible consumption
• Promoting health and safety
• Growing with communities
• Values and behaviours

Environmental Achievements

• Reduced CO2 emissions (Specific figures not provided, but progress mentioned in report)
• Reduced water consumption in breweries (Specific figures not provided, but progress mentioned in report)
• Increased percentage of products sold in returnable packaging (approximately 45%)

Social Achievements

• Implemented local community engagement, impact assessments, and development programmes in 36 Operating Companies
• Trained 12,889 employees on Business Code of Conduct, including anti-corruption policies
• 61.7% of employees covered by collective bargaining agreements

Governance Achievements

• Six Steering Committees in place for decision-making on economic, environmental, and social impacts
• External assurance provided by KPMG

Climate Goals & Targets

Environmental Challenges

• Climate change risks (water scarcity, impact on raw materials)
• Potential negative impacts on local communities (not specified)
• Potential negative impacts on society in the supply chain (not specified)

Mitigation Strategies

• Water Stewardship programme focused on 23 sites in areas with expected future water stress
• Supplier Code with environmental and social criteria, leading to termination of commercial relationships for non-compliance
• Risk mitigation programme for harmful alcohol use for employees

Supply Chain Management

Supplier Audits: Significant suppliers assessed/audited on compliance with the Supplier Code on human rights by Ecovadis.

Responsible Procurement

• Supplier Code containing environmental, social, and human rights criteria

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Impact of weather change on raw materials

Transition Risks

• Business continuity risks
• Cost of carbon credits
• Insurance costs

Opportunities

• Business opportunities relating to climate change

Reporting Standards

Frameworks Used: GRI G4-Core

Third-party Assurance: KPMG

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Circular Economy
• Diversity & Inclusion
• Responsible Consumption
• Human Rights

Environmental Achievements

• 34% reduction in scope 1 and 2 emissions compared to 2018 baseline
• 20% reduction in scope 3 emissions compared to 2018 baseline
• Global average water usage improved to 3.2 hl/hl (2022: 3.3 hl/hl)
• 28 of 32 sites in water-stressed areas started water balancing projects, 28% fully water balanced
• Net zero and FLAG targets approved by SBTi

Social Achievements

• 100% of markets had a partnership in place to address harmful effects of alcohol
• Growth from 19% women in senior leadership in 2017 to 28% in 2023
• 100% of direct employees earn a fair wage according to the Fair Wage Network
• Launched 'Worlds Together' social impact campaign

Governance Achievements

• First double materiality assessment conducted to prepare for CSRD compliance
• Enhanced disclosures in the 2022 remuneration report received positive feedback from stakeholders
• 97.84% of votes cast in favor of the 2022 remuneration report

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic and geopolitical volatility
• High input and energy cost inflation
• Volatile macroeconomic conditions
• Economic slowdown due to uncertain political landscape
• High inflation and higher interest rates
• Supply chain disruptions
• Climate change impacts on water and agricultural commodities
• Increased scrutiny and expectations of society on multinationals
• Digital disruption creating new routes to customers

Mitigation Strategies

• Investing in brands, capabilities, digital programs, and sustainability initiatives
• Strong pricing to offset inflation
• Productivity program delivering €0.8 billion in gross savings
• Supplier management, short-term liquidity management, foreign exchange monitoring, prudent balance sheet measures, scenario planning
• Monthly rolling forecast instead of fixed forecasts
• Contingency plans for business continuity
• Brew a Better World 2030 strategy
• Accelerated digitalisation in fragmented trade and e-retail
• Unified Customer Ecosystem (UCE) strategy

Supply Chain Management

Responsible Procurement

• Global Low Carbon Farming programme
• Supplier Leadership on Climate Transition (Supplier LOCT)
• Water Global Screening

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Climate-related barley yield losses

Transition Risks

• Carbon pricing
• Regulatory changes

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Deloitte Accountants B.V.

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through water stewardship, renewable energy, fair wages, responsible consumption, and climate action

Sustainable Products & Innovation

• Heineken® 0.0
• Heineken® Silver
• Tiger Soju

Awards & Recognition

• CDP A-list for Climate
• Forbes World's Best Employers ranking