Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Responsible Consumption
• Water Stewardship
• CO2 Emissions Reduction
• Sustainable Sourcing

Environmental Achievements

• Introduced Europe’s first 100% recycled PET bottles for distribution in the Netherlands
• Set up water protection plans and water stewardship teams in Spain, Mexico, and Ethiopia
• Launched a sorghum project to support sustainable local sourcing in Ethiopia, Rwanda, and Sierra Leone
• Driving down CO2 emissions

Social Achievements

• Renewed Code of Business Conduct training for employees
• Increased percentage of local management team members in Africa Middle East to 48%
• Helped over 400 high-potential leaders with structured feedback and coaching
• Trained 6,000+ employees in Heineken leadership competencies
• Nearly 1,700 First Line Managers (FLMs) in 35 operating companies participated in FLM Development Programme
• Invested 10% of media spend on inspiring global campaigns and creating partnerships in 39 markets to address alcohol abuse

Governance Achievements

• Renewed Code of Business Conduct
• Intensified focus on driving cost efficiencies resulting in new restructuring opportunities

Climate Goals & Targets

Environmental Challenges

• Tough market conditions in Europe
• Weaker than expected trading in some developing markets
• Increased media, social and political criticism directed at the alcoholic beverage industry
• Alcohol abuse
• Increased restrictions on commercial freedoms
• Increased taxes and duties
• Increased restrictions in availability
• Disproportionate increases in excise and other taxes

Mitigation Strategies

• Implemented initiatives to improve top-line performance (innovation, pricing, portfolio planning, execution)
• Realised cost savings of €1.4 billion since 2006 (€300m in 2013)
• Advocating responsible consumption
• Engaging governments and sharing the economic and social impact of excessive taxation
• Intensified efforts to drive operational efficiencies in Europe through rightsizing and other restructuring activities

Supply Chain Management

Supplier Audits: More than 39,000 global and local suppliers signed the Supplier Code

Responsible Procurement

• Supplier Code outlining key elements of integrity, environment and human rights
• Sustainable sourcing plan

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Europe’s first 100% recycled PET bottles

Environmental Metrics

ESG Focus Areas

• Sustainability
• Responsible Consumption
• Community Growth
• Health and Safety

Environmental Achievements

• 90% of waste heat from a nearby industry used in Wieselburg brewery (Austria)
• 4,000 solar panels installed in Tadcaster brewery
• Decreasing water consumption in brewing process
• Featured in CDP Climate Performance Leadership Index A-List

Social Achievements

• Local sourcing activities in Africa helped over 100,000 farmers
• Heineken® invested 10% of media budget in responsible drinking campaigns
• Heineken Creative Marketer of the Year 2015 award

Governance Achievements

• Continued focus on cost management and efficiency initiatives
• Strengthened commercial organization and central marketing academy
• Global safety program to strengthen global standards

Climate Goals & Targets

Environmental Challenges

• Increased media, social and political criticism of the alcohol industry
• Negative societal perception of alcohol leading to restrictive measures
• Changing consumer preferences and behaviors
• Industry consolidation
• Supply chain disruptions
• Economic and political uncertainties
• Management capabilities
• Safety, Health and Environment (SHE) incidents
• Non-compliance with regulations
• Product safety and integrity
• Information security
• Social media management

Mitigation Strategies

• Responsible consumption campaigns
• Cooperation with governments and NGOs
• Strengthened commercial and innovation organizations
• Improved cost efficiency and market intelligence
• Robust balance sheet and business integration capabilities
• Global safety program and compliance monitoring
• Global production standards and supplier governance
• Strengthened information security policy and continuity measures
• Social media program and crisis management training

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• 0.0% MAXX and Radler 0.0% (no and low alcohol beers)

Awards & Recognition

• Heineken Creative Marketer of the Year 2015

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Achieved a 36% reduction in CO2 emissions in production compared with 2008
• Achieved 100% of fridges purchased were ‘green’, with CO2 emissions 45% lower than in 2010
• Decreased average water consumption to 3.7 hl/hl, a reduction of 26% compared with 2008

Social Achievements

• Organized CSR campaign “Guys, who drives home?” during Belgrade Beer Fest to promote responsible behavior in traffic
• Provided additional health insurance to all employees
• More than 15,500 employees participated in volunteering activities for an estimated 58,000 hours

Governance Achievements

• Implemented HEINEKEN Standards, often stricter than European regulations
• More than 50,000 employees completed Code of Business Conduct training
• Launched a three-year anti-bribery e-learning training program

Climate Goals & Targets

Environmental Challenges

• Water consumption in Serbia exceeded local milestone due to increased production volumes
• Specific water consumption increased from 5.8 hl/hl to 5.9 hl/hl
• Increase in effluent COD to surface water due to increased production
• Missed 2015 target for reducing CO2 emissions in distribution in Europe and the Americas

Mitigation Strategies

• Developed detailed action plans for water reduction embedded within the Total Productive Management (TPM) framework
• Investing in Waste Water Treatment Plant in Zajecar brewery
• Focusing on transport efficiency, fuel efficiency, and modal efficiency to reduce distribution emissions
• Installing more energy-efficient fridges

Supply Chain Management

Supplier Audits: No audits conducted in 2015, but more planned due to onboarding of higher-risk countries to EcoVadis

Responsible Procurement

• Four-step Supplier Code Procedure
• EcoVadis sustainability-monitoring platform
• Sustainable Agriculture Initiative Platform (SAI)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative Guidelines (G4) – Core

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 22000

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 15

Awards & Recognition

• RobecoSAM Bronze Class distinction
• Industry Mover award
• Best socially responsible campaign (Auto Bild)
• Gold awards for socially responsible PR campaign and socially responsible campaign in the profit sector (Association for Market Communications of Serbia)

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• 51% decrease in carbon emissions from production since 2008
• 33% reduction in water consumption (hl/hl) since 2008
• 100% of newly purchased fridges meet low carbon footprint standards emitting over 55% less carbon than those 10 years ago

Social Achievements

• €23m pandemic relief provided to support front-line medical facilities
• Over €10 million raised to support 50,000 outlets in 21 countries through the ‘Back the Bars’ initiative
• Donated more than 850,000 sanitizer bottles to front-line hospital workers
• 98% of markets where Heineken® is sold and advertised allocated 10% or more of media spend to responsible consumption campaigns

Governance Achievements

• No transactions reported where a member of the Executive Board had a conflict of interest of material significance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business, employees, customers, and suppliers
• Economic and political uncertainties
• Regulatory changes related to alcohol
• Environmental legislation
• Supply chain disruptions
• Increased scrutiny and expectations of society on multinationals
• Distribution channel transformation
• Changing consumer preferences
• Health and Safety incidents

Mitigation Strategies

• Cost mitigation actions
• Financial support to customers and suppliers
• Back to Bars initiative
• Pandemic relief donations
• Supplier management, short-term liquidity management, foreign exchange monitoring, prudent balance sheet measures, scenario planning
• Responsible consumption campaigns
• Proactive communication with operating companies
• Environmental sustainability strategy
• Global footprint, business continuity plans, long-term procurement contracts, water management plans, central management of global insurance policies
• Clear strategies and targets to address growing expectations, ESG performance disclosure
• Commercial digital initiatives, new business models
• Focused craft and variety strategy, investment in zero alcohol category
• 'Put Safety First' key behavior, Life Saving Rules, medical care, global crisis coordination structure

Supply Chain Management

Responsible Procurement

• 58% of raw materials from sustainable sources
• 10-year low carbon agriculture programme

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Heineken® 0.0
• Heineken® Silver
• Pure Piraña
• Amstel Ultra® Seltzer
• AriZona SunRise Hard Seltzer
• Desperados Virgin 0.0%
• Lagunitas IPNA

Awards & Recognition

• Affligem Blond crowned world’s best “Belgian Style Blond” at the World Beer Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Circular Economy
• Inclusion & Diversity
• Fair and Safe Workplace
• Community Investment
• Responsible Consumption
• Harmful Use Reduction

Environmental Achievements

• Reduced scope 1 and 2 emissions by 18% vs. 2018 baseline
• Improved average water usage by 34% compared to 2008
• 99% of total waste globally reused or recycled in 2022
• Opened Cambodia’s first bioenergy plant
• Constructing a thermal solar site in Spain
• New solar plant in South Africa

Social Achievements

• Increased women in senior leadership from 19% in 2017 to 27% in 2022
• Launched ALL-Inclusive Leadership e-learning
• Reached annual target of social impact initiative in 100% of in-scope markets
• Increased locally sourced agricultural ingredients in Africa by 26% compared to 2020 baseline
• Implemented a 57% wage increase for all third-party employees in Nigeria

Governance Achievements

• Modified Executive Board remuneration policy to introduce ESG-related performance measures
• Refreshed Responsible Marketing Code

Climate Goals & Targets

Environmental Challenges

• Increased input cost inflation and supply chain disruptions
• Economic recession, change of law, trade restrictions, inflation, fluctuations in exchange rates, devaluation, nationalisation, financial crisis or social unrest
• Changing consumer preferences
• Increased scrutiny and expectations of society on multinationals
• Distribution channel transformation
• Climate change impacts on natural resources and operations
• Cybersecurity incidents

Mitigation Strategies

• Supplier management, short-term liquidity management, tight foreign exchange monitoring, prudent balance sheet measures and scenario planning
• Consumer Inspired Growth programme, innovation, and investment
• Brew a Better World 2030 strategy, transparency, and stakeholder engagement
• Accelerated digitalisation in fragmented trade and e-retail
• Water strategy, sustainable sourcing, emission reduction strategies
• Cybersecurity initiatives, employee awareness training

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Climate-related barley yield losses

Transition Risks

• Carbon pricing
• Regulatory changes

Reporting Standards

Frameworks Used: TCFD, CDP

Third-party Assurance: Deloitte Accountants B.V.

Sustainable Products & Innovation

• Heineken® 0.0
• Heineken® Silver

Awards & Recognition

• A score for Climate from the Carbon Disclosure Project (CDP)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Circular Economy
• Diversity, Equity, and Inclusion
• Responsible Consumption
• Human Rights
• Community Investment

Environmental Achievements

• 34% reduction in scope 1 and 2 emissions compared to 2018 baseline
• 20% reduction in scope 3 emissions compared to 2018 baseline
• Improved global average water usage from 3.3 hl/hl to 3.2 hl/hl
• 28 of 32 sites in water-stressed areas started water balancing projects, 28% fully water balanced
• 13% reduction of carbon emissions and 81% improvement of carbon sequestration in Low Carbon Farming program

Social Achievements

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

Governance Achievements

• Net zero and FLAG targets approved by the Science Based Targets initiative (SBTi)
• 99.8% of people managers globally trained on inclusive leadership

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic and geopolitical volatility
• High input and energy cost inflation
• Volatile macroeconomic conditions
• Reduced production volumes impacting water efficiency
• Short-term growth challenges in Vietnam
• Market share losses in off-trade in Europe
• Bad weather impacting European business
• Structural shortage of African sugar

Mitigation Strategies

• Investing in brands and capabilities
• Exceeding productivity commitments (€0.8 billion gross savings)
• Strong pricing to offset inflation
• Implementing water balancing projects
• Investing in renewable energy (PPAs, solar thermal plant)
• Engaging strategic suppliers to reduce scope 3 emissions
• Implementing revenue management strategies in Europe
• Focusing on premiumisation and innovation
• Digitalising route-to-consumer
• Local sourcing initiatives

Supply Chain Management

Responsible Procurement

• Global Low Carbon Farming programme
• Supplier Leadership on Climate Transition (Supplier LOCT)
• Investing in low-carbon fertiliser solutions
• Engaging logistics service providers to reduce emissions

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Climate-related barley yield losses

Transition Risks

• Carbon pricing
• Regulatory changes

Reporting Standards

Frameworks Used: TCFD, SBTi

Third-party Assurance: Deloitte Accountants B.V.

Sustainable Products & Innovation

• Heineken® 0.0
• Heineken® Silver
• Tiger Soju
• Lagunitas Hoppy Refresher
• Red Stripe Rum Punch and Mojito
• Amstel Vibes
• Clash’d

Awards & Recognition

• CDP A-list for Climate
• Forbes World's Best Employers ranking (top 5 in industry, 78th overall)

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Social sustainability
• Responsible consumption

Environmental Achievements

• Further reduced emissions in the first half of the year
• Opened a large-scale solar thermal plant in Valencia, Spain
• Introduced the Star Bottle, a premium returnable packaging in South Africa
• Improved water use efficiency in breweries
• Three sites in Indonesia are fully water balanced
• First harvest of barley from a large-scale regenerative agriculture project in France

Social Achievements

• Good progress towards achieving 30% women in senior management roles by 2025 and 40% by 2030
• Assessed all operating companies and established action plans to close any pay gaps
• Met the goal to pay all employees a fair wage
• Onboarded the Americas region in the Smart Outsourcing programme to create fair living and working standards for third-party employees

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Economic volatility in certain markets
• Intensified competition in the economy segment in Brazil
• Poor June weather in Europe
• Volatile macroeconomic environment in key emerging markets (currency devaluation in Ethiopia, hyperinflation in Nigeria and Egypt)
• Deteriorated economic outlook in Haiti due to political unrest and insecurity

Mitigation Strategies

• Driving productivity and capital efficiency
• Nearshoring of production facilities and establishing local sourcing solutions (mainly in the Americas)
• Preparing for recapitalising Nigerian Breweries Ltd
• Adjusting portfolio and channel priorities in Vietnam in response to stricter enforcement of Decree 100
• Maintaining business continuity and prioritizing the safety of employees in Haiti

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Close collaboration with strategic suppliers, enabling nearshoring and local sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Star Bottle
• Heineken® 0.0
• Sol Zero

Awards & Recognition

• Heineken® received 22 awards from the Cannes Lions Festival