Climate Change Data

Heineken Malaysia Berhad

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:14,983 tCO2e (production at Sungei Way Brewery)
Total Energy Consumption:10.62 kWh/hl
Water Consumption:3.65 hl/hl
Waste Generated:23,834 tons (100% recycled)

ESG Focus Areas

  • Environmental Sustainability
  • Social Sustainability
  • Responsible Consumption

Environmental Achievements

  • 15.7% reduction in CO2 emissions compared with 2018 baseline in production at Sungei Way Brewery.
  • Achieved zero waste to landfill since 2017.
  • Achieved 289% of water balancing target in 2021.

Social Achievements

  • 80% of people managers trained in inclusive leadership.
  • 50% women in HEINEKEN Malaysia’s Management Team.
  • 1 accident, 0 fatalities in 2021.
  • Launched HEINEKEN Cares programme, providing 150,000 meals to vulnerable communities.

Governance Achievements

  • Refreshed sustainability governance structure with key stakeholders across various functions.
  • Sustainability Committee chaired by Managing Director.

Climate Goals & Targets

Long-term Goals:
  • Net zero across the value chain by 2040.
  • Fully balance water used in our products in water-stressed areas by 2030.
Medium-term Goals:
  • Net zero emissions in production by 2030.
  • Reduce average water usage to 2.6 hl/hl in water-stressed areas and 2.9 hl/hl globally by 2030.
  • 30% absolute reduction in carbon footprint by 2030.
  • 40% women across senior management by 2030.
Short-term Goals:
  • Reduce 50% of CO2 emissions in production by 2025 compared with 2018 baseline.
  • 100% people managers trained in inclusive leadership by 2023.

Environmental Challenges

  • 11-week suspension of operations at Sungei Way Brewery due to Movement Control Order impacting energy efficiency.
  • COVID-19 pandemic impacting community well-being and operations.
Mitigation Strategies
  • Implemented rigorous process to screen for and prevent the spread of COVID-19 at the workplace.
  • Launched HEINEKEN Cares programme to provide food aid to vulnerable communities.
  • Implemented hybrid work arrangements to minimize workplace transmission.

Supply Chain Management

Responsible Procurement
  • Compliance with HEINEKEN Supplier Code

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, CDP, WEF Stakeholder Capitalism Metrics, TCFD recommendations

Sustainable Products & Innovation

  • Heineken® 0.0

Awards & Recognition

  • Highly Commended Award at the Sustainable Business Awards 2020/2021
  • Green Leadership Award at the Asia Responsible Enterprise Awards 2021
  • Company of the Year award at Sustainability & CSR Malaysia Awards 2021

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:9,148 tCO2e/year (production)
Scope 1 Emissions:6,039 tCO2e/year
Scope 2 Emissions:1,410 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:100% (electricity)
Total Energy Consumption:15,835 MWh/year
Water Consumption:Not disclosed
Waste Generated:35,423 tons/year (100% recycled)
Carbon Intensity:5.18 kgCO2e/hl (production)

ESG Focus Areas

  • Environmental Sustainability
  • Social Sustainability
  • Responsible Consumption
  • Governance

Environmental Achievements

  • Reduced absolute carbon emissions in production by 49% vs 2018 baseline
  • 100% renewable electricity since March 2022
  • Zero waste to landfill since 2017
  • Reduced water consumption by 20% vs 2014 baseline

Social Achievements

  • 43% women in Board of Directors
  • 63% women in Management Team
  • Zero fatal accidents and serious injuries
  • 80% of employees attended inclusive practices workshop
  • Two social impact initiatives (Tiger Sin Chew Chinese Education Charity Concert and HEINEKEN Cares Programme)

Governance Achievements

  • 100% of Board of Directors received anti-bribery and anti-corruption training
  • 97% of employees completed Anti-Bribery and Anti-Corruption e-learning
  • All Speak Up reports resolved

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero carbon emissions across value chain by 2040
Medium-term Goals:
  • Achieve net zero carbon emissions in production by 2030
  • 30% absolute reduction in emissions across value chain by 2030
  • Maximise water circularity and treat 100% of wastewater by 2030
  • Fully balance water used in products in water-stressed areas by 2030
Short-term Goals:
  • Reduce CO2 emissions by 86% by 2025
  • Reduce average water usage to 2.6 hl/hl in water-stressed areas and 2.9 hl/hl globally by 2030
  • Increase biogas recovery to replace 25% of thermal energy needs by 2025
  • Close any gaps in fair wage by 2023
  • Complete equal pay assessments and take action by 2023
  • 100% people managers trained in inclusive leadership by 2023

Environmental Challenges

  • Rising input costs
  • Supply chain disruptions
  • Growing conservatism in marketing
  • Cybersecurity risks
  • Safety of employees and contractors
  • Human rights violations
  • Environmental compliance
  • Water supply disruptions
Mitigation Strategies
  • EverGreen strategy with disciplined cost management
  • Sungei Way Brewery upgrades for efficiency
  • HEINEKEN Global supply chain resiliency task force
  • 100% vetting of commercial communications against Responsible Marketing Code
  • Cyber Crisis Preparedness exercise, cybersecurity training, and framework implementation
  • Safety Leadership Workshop, 'Put Safety First' campaign, refreshed HEINEKEN Life Saving Commitments
  • HeiCode e-learning covering Human Rights Policy, spot checks on contract workers' payrolls
  • Competent employees managing environmental compliance, wastewater treatment plant, waste recycling, net-zero carbon roadmap, transition to 100% renewable electricity
  • Three-pronged approach to water management: efficiency, circularity, and stewardship

Supply Chain Management

Supplier Audits: 100% compliance with HEINEKEN Supplier Code

Responsible Procurement
  • HEINEKEN Supplier Code
  • Distributor Code of Conduct
  • SMART Outsourcing programme

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Extreme weather conditions
Transition Risks
  • Changes in energy prices
  • Disruptions in water supply
  • Changes in temperature and precipitation patterns affecting raw material quality and supply
Opportunities
  • Deployment of renewable energy

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia’s Sustainability Reporting Guide (3rd edition)

Certifications: MS 1480: 2007 HACCP, ISO 9001:2015

Third-party Assurance: Rapid Genesis Sdn. Bhd. (environmental data), Limnotech (water balancing)

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 16

Initiatives aligned with relevant SDGs as detailed in the report

Sustainable Products & Innovation

  • Heineken® 0.0

Awards & Recognition

  • UNGCMYB Sustainability Performance Awards 2022 (SDG Ambition Benchmark 2 & 3)
  • Sustainability & CSR Malaysia Awards 2022 (Long-Standing Excellence in Sustainability Award and Company of the Year for Environmental Sustainability & Social Initiatives Award)
  • HR Excellence Awards 2022 (Gold Award for Excellence in Diversity, Equity, and Inclusion)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:7,685 tCO2e/year
Scope 1 Emissions:6,375 tCO2e/year
Scope 2 Emissions:0 tCO2e/year
Scope 3 Emissions:1,310 tCO2e/year
Renewable Energy Share:100% (Scope 2)
Total Energy Consumption:175,726 GJ/year
Water Consumption:370,304 m3/year
Waste Generated:32,632 tons/year

ESG Focus Areas

  • Environmental Sustainability
  • Social Sustainability
  • Responsible Consumption

Environmental Achievements

  • Reduced Scope 1 & 2 carbon emissions by 65% compared to the 2018 baseline.
  • Achieved 100% renewable electricity since March 2022.
  • Achieved Zero Waste to Landfill since 2017.
  • Improved water consumption by 21% since 2014 baseline and balanced 223% of water used in products.

Social Achievements

  • Women comprise 43% of the Board of Directors.
  • Women comprise 38% of the Management Team.
  • Zero fatal accidents and serious injuries.
  • Tiger Sin Chew Chinese Education Charity Concert raised RM26 million for 8 institutions.
  • HEINEKEN Cares channeled RM250,000 to support community resilience projects.

Governance Achievements

  • Zero cases of corruption.
  • Zero incidents of customer privacy and data breach.
  • 100% of employees underwent training on anti-bribery and anti-corruption.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions across value chain by 2040.
Medium-term Goals:
  • Reduce Scope 3 emissions by 21% by 2030.
  • Reduce emissions across value chain by 30% by 2030.
  • 100% sustainably sourced ingredients by 2030.
Short-term Goals:
  • Net zero emissions in production by 2030.

Environmental Challenges

  • Global macroeconomic uncertainties, geopolitical tensions, weakening Ringgit, rising costs of living, and softening consumer sentiments.
  • Market correction in 2023 after a strong rebound in 2022.
  • Illicit alcohol trade.
Mitigation Strategies
  • Agile approach in delivering 2024 ambition.
  • Continued commitment to EverGreen strategy.
  • Monitoring and supporting authorities in addressing illicit alcohol trade.

Supply Chain Management

Supplier Audits: 100% compliance with HEINEKEN Suppliers Code

Responsible Procurement
  • HEINEKEN Supplier Code
  • Distributor Code of Conduct
  • SMART Outsourcing programme

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme drought and heat impacting barley and hops availability.
Transition Risks
  • Carbon pricing impact on value chain and own operations.
  • Water stress impact on own operations.
  • Climate-related barley yield losses.

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations, FTSE4Good Bursa Malaysia Index, Bursa Malaysia’s sustainability reporting requirements

Certifications: MS 1480:2007 HACCP, ISO 9001:2015

Third-party Assurance: Rapid Genesis Sdn. Bhd., Limnotech

UN Sustainable Development Goals

  • 3.5
  • 5.5
  • 6.3
  • 6.4
  • 6.6
  • 7.2
  • 7.3
  • 8.7
  • 8.8
  • 12.5
  • 13.1
  • 16.5

Initiatives aligned with UN SDGs to address responsible consumption, gender equality, water stewardship, renewable energy, human rights, waste management, climate resilience, and anti-corruption.

Sustainable Products & Innovation

  • Heineken® 0.0

Awards & Recognition

  • UN Global Compact Network Malaysia and Brunei Forward Faster Sustainability Awards 2023
  • Star ESG Positive Impact Awards 2022
  • Heineken® Packaging Quality Award 2023
  • HR Excellence Awards 2023
  • PwC Malaysia Building Trust Awards 2023
  • Malaysian Dutch Business Council Innovation and Sustainability Awards 2023
  • Sustainability & CSR Malaysia Awards 2023