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Brewing a Better Future HEINEKEN Ireland Sustainability Report 2011

HEINEKEN Ireland Sustainability Report 2011 Brewing a ... · • HEINEKEN in Ireland is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world, committed

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Page 1: HEINEKEN Ireland Sustainability Report 2011 Brewing a ... · • HEINEKEN in Ireland is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world, committed

Brewing a Better FutureHEINEKEN Ireland Sustainability Report 2011

Page 2: HEINEKEN Ireland Sustainability Report 2011 Brewing a ... · • HEINEKEN in Ireland is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world, committed

Welcome to our Sustainability Report 2011

•HEINEKEN in Ireland is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world, committed to surprising and exciting consumers everywhere

•We are the leading lager brewer in Ireland, one in every two pints of lager consumed in the pub, is now from our portfolio of beers

•Our principal brand is Heineken®, which is Ireland’s number 1 selling lager

•We have a diverse and committed team of near 440 employees

•We own, market and sell an extensive beer portfolio in the Irish marketplace, comprising of Heineken®, Coors Light, Amstel, Fosters, Beamish Stout, Murphy’s Irish Stout, and a full range of specialty beers including Sol, Tiger, Desperados, Paulaner, Moretti, Zywiec, Affligem, to name but a few

•Our four values are a passion for quality, enjoyment of life, respect for people and respect for our planet

•Our head office is based in Murphy Brewery, Cork with offices in Dublin and a national network of distributors servicing the 32 counties of Ireland

This printed report summarises HEINEKEN’s progress onBrewing a Better Future in 2011.

HEINEKEN in short

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We are very proud in HEINEKEN Ireland to have, over many years, delivered strong growth for both our our business and brands in the Irish market. We are now the leading supplier of premium, high quality lager brands and our market position continues to go from strength to strength. We have a committed work force who share our passion for delighting and surprising our consumers the length and breath of Ireland.

In HEINEKEN Ireland four values are central to everything we do, namely a passion for quality, enjoyment of life, respect for people and finally respect for our planet. These values shape our agenda and it is against this background that we launched our Sustainability Program, Brewing a Better Future, three years ago.

Our aim is simple, we wish to be the Greenest Brewer in the Irish market-place! To achieve this, we in HEINEKEN Ireland are committed to delivering on three key areas; continuously improving the environmental impact of our brands and business, empowering our people and the communities in which we operate, and finally, continuing to positively impact the role of beer in society. We have developed a compelling programme with clear quantifiable targets which we are actively implementing throughout our business.

I am pleased to say that we have made positive progress in all areas throughout 2011, however I recognise that we still have a way to go to achieve our ambition of being Ireland’s Greenest Brewer. I invite you to review the progress we have made in 2011, you will see that together with all HEINEKEN Ireland staff we are on a comprehensive journey to making our business more sustainable in Irish society.

This is our dream, we look forward to working with you, our stakeholders, on realising that dream!

David FordeDavid FordeManaging Director

“Brewing a Better Future is about how we bring our responsibility to life in society.”

To All Our Stakeholders

HEINEKEN Ireland Sustainability Report 2011 3

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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

About Brewing a Better FutureBrewing a Better Future was introduced in April 2010 and born out of close discussions with our stakeholders. It has provided the Company with a road map and reflects our integrated and long-term ambition to become an even greener business.

We focus on three strategic imperatives: 1. Continuously IMPROVE the

environmental impact of our brands and business

2. EMPOWER our people and the communities in which we operate

3. Positively IMPACT the role of beer in society.

We have created 23 programme areas that by 2020 will bring our words ‘Brewing a Better Future’ to life with our people and our stakeholders and which cover our material impacts as well as our value-based approach to people and society.”

4 HEINEKEN Ireland Sustainability Report 2011

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Agriculture

product brewingof beer

ion

Malting

productionof malt

from barley

Packagingmaterialsproduction

of glass bottles,cans and kegs

Distributionof beerlocal and

export beer

Customercooling,

recycling ofpackaging

Consumercooling,

recycling ofpackaging

Brewing

From barley to bar we target improvements throughout the value chain

Governance Brewing a Better Future (BaBF) is governed by our executive board. Headed by our Managing Director, the Executive Board takes ownership for the delivery of BaBF plans, targets, and acts as a sounding board on such matters for the BaBF team in the company. BaBF is an agenda item on an on-going basis at board meetings. On a day-to-day basis, Brewing a Better Future is managed by a team of representatives from the Supply Chain, Commerce, HR, and Corporate Relations functions. This sustainability committee drafts and implements the three-year sustainability plan, which is an integral part of the long-term business strategy of the company.

Over the past three years, our BaBF Team has made great strides in engaging and energizing employees and stakeholders to accomplish a number of bold initiatives – from reducing water use and greenhouse gas emissions, to developing renewable energy programs, from executing responsible drinking campaigns, to creating safe work environments and encouraging employee volunteer programs.

Ultimately, our approach to sustainability plays an integral part in enabling us to continuously achieve our business objectives.

HEINEKEN Ireland Sustainability Report 2011 5

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What we said we will do by 20121 What we’ve done in 2011

Green Brewer

Specific energy consumption < 110 MJ/hl We remain on target at 117 MJ/hl, having sucessfully achieved a reduction on our 2011 energy consumption over 2010

Average greenhouse gas emission < 5.9 kg CO2-eq/hl for breweries in scope

We achieved 6.3 kg CO2-eq/hl (a decrease of 6% in total CO2 emissions on 2010) and are on target

Specific water consumption < 3.2 hl/hl We achieved a consumption level of 3.3 hl/hl and are on target and remain one of the most water efficient breweries in the HEINEKEN group

Green Commerce

All new purchased fridges to be based on green technology, if legally and technically possible

Green fridge policy approved, 100% of new fridges acquired in 2011 based on ‘green’ technology

Evaluation criteria introduced for all new Draught Beer Servicing ( DBS) equipment

Environmental criteria introduced into the decision-making process for all new (DBS) equipment acquisitions. Criteria for Distribution /Logistics contracts in progress

Develop and execute a baseline carbon footprint model

Baseline carbon footprint for HEINEKEN in Ireland established in 2010 and 2011

Engaging Employees

Accident frequency target at zero Accident frequency in Supply Chain, has improved from 4.7 cases/100 FTE in 2010 to 4.4 cases/100 FTE in 2011. Accident severity greatly reduced because of various occupational safety improvements realised in 2011

Employees’ & Human Rights policy adopted, implemented and audited

Employees’ & Human Right policy approved

Volunteering scheme to be established and implemented

Companywide employee volunteering activities launched on Sept. 30, 2011 (V-Day), in aid of Simon Community – a significant success

HEINEKEN Cares

Local sourcing of materials and services Malt requirements sourced locally, in excess of ¤100m invested in the local economy, supporting near 1,000 local suppliers in the process

Brewery operations to comply with defined standard of healthcare plans by 2012

Employee well being program rolled out, brewery healthcare standards adhere to group policy

What we said and what we’ve done*

1 Unless stated differently.

6 HEINEKEN Ireland Sustainability Report 2011

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HEINEKEN Ireland Sustainability Report 2011 7

What we said we will do by 20121 What we’ve done in 2011

Responsible Consumption

Develop ‘Enjoy Heineken® Responsibly’ (EHR) to include on-trade execution; further extend the online programme

Delivered and completed

Develop and deliver a workshop to 100% of commerce/marketing employees that supports our Rules on Responsible Commercial Communication (RCC)

The new annual RCC module was integrated into the Global Commerce University and online in December. All marketing and senior sales personnel completed same in 2011

Develop a specific alcohol and work plan for contractors Alcohol policy drafted, implemented and communicated to all employees. Contractors are now included in the Cool@Work annual implementation guidelines

Partnerships for Progress

HEINEKEN to have a partnership with a third party to address alcohol abuse

Foundations of a partnership agreement put in place with Cork Simon – on target for completion in 2012

Criteria for successful partnerships developed and existing partnerships reviewed

Partnership criteria in process of being finalised

Enablers

From 2010: every Operating Company to have a three-year sustainability plan

Target achieved – 3 year plan submitted in 2011

Renewed Supplier Code based on new approach by mid-2010

By end 2011, 94% of local suppliers had signed the new Supplier Code

Introduce incentives for all senior managers on sustainability target

Sustainability target incentives introduced for all senior managers in 2011

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At HEINEKEN, we are working hard to increase the energy and water efficiencyof our breweries, offices and warehouses. In 2011, we made good progress andare on target to achieve the goals weset for 2012.

IMPROVE

Green Brewer

8 HEINEKEN Ireland Sustainability Report 2011

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Energy consumption Energy conservation has always been a strategic focus of the Total Productive Management (TPM) System in our brewery, as our efforts continue to yield consumption reductions year on year.

In 2011, we continued to reduce our total energy consumption needed to produce 1 hectolitre (hl) of beer, by 1%: from 118 MJ/hl in 2010 to 117 MJ/hl in 2011.

Much of this reduction has been achieved through regular inspection and upgrade of plant and equipment together with an ongoing attention and focus on heat recovery opportunities.

Adding renewable energy to the mix Our performance in greenhouse gas emissions improved as well. With 6.3 kg CO2-eq/ hl in 2011 we are well on track to achieve our target of 40% reduction in 2020.

We estimate that 75% of the targeted CO2-reduction should come from using less energy and 25% from including renewable resources, such as solar, photovoltaic, wind and biogas energy in a more diversified energy source mix.

3% Reduction in totalelectricity consumption

1% Reduction in totalwater consumption

21% Reduction inwaste to landfill

Key figures

HEINEKEN Ireland Sustainability Report 2011 9

It is our on-going ambition to strive to do more with less and use natural resources as efficiently as possible, while maintaining the quality of our products. We place particular focus on the water and energy we use to brew our beers, as well as on reducing waste and recycling our byproducts.”

Petra HissinkSupply Chain Director

2009 2010 2011

125

120

115

110

105

100

95

MJ/

hl

Specific total energy consumption MJ/hl beer Actual performance

119.7 117.7 117.4

2009 2010 2011

6.8

6.6

6.4

6.2

6.0

5.8

5.6

5.4

kg C

O2/h

l

Direct and indirect C02 emission MJ/hl beer Actual performance

6.7 6.6

6.3

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A leader in water efficiency Water is both an important ingredient and a scarce and finite resource. For HEINEKEN in Ireland it currently takes 3.3 hl of water to produce one hl of beer.

Within the global HEINEKEN group, we are already among the leaders in water efficiency.We are committed to using even less and we continue to explore further reduction opportunities in that regard.

Waste Management

Our first focus is to not create waste, and we continue to focus on recycling throughout our operation. Everyone in our company acknowledges their responsibility with respect to waste with a focus on segregation and recycling. Because of our efforts and focus on waste segregation, we again reduced our waste to landfill in 2011 by 21%.

IMPROVE – Green Brewer

10 HEINEKEN Ireland Sustainability Report 2011

Our waste and by-products are recycledin the following manner;

Brewer’s grains Animal feed componentYeast Animal feed component or food flavoring for human consumptionPaper Paper recycling Glass bottles Glass manufacturing Metal Packaging Various metal products

Energy Recovery

Our Energy recovery initiatives have yielded substantial savings in monies and carbon footprint in 2011.

Our Utilities heat recovery initiative now takesthe waste heat that is normally rejected to atmosphere in the utility plant (air compressors and refrigeration plants) and transfers it to heat water used in our Racking Hall for washing the internals and externals of kegs prior to filling with beer. Normally this water is heated up from cold using steam.

As a result of this initiative, the amount of steam heating of this water has been reduced by 40%.This project saves the brewery approximately €30,000 per annum and this equates to heating 60 well-insulated homes for a year. Another initiative of this nature in our Brewhouse utilises the heat that is not required for pre-heating the wort and uses it to heat incoming water in the Brewhouse. As a result of the heat recovery project, the amount of steam heatingof this water has been reduced by 45%. This project saves the brewery approximately €40,000 per annum.

2009 2010 2011

3.4

3.3

3.2

3.1

3.0

2.9

2.8

2.6

hl/h

l

Specific water consumption hl water/hl beer Actual performance

3.28 3.27 3.17

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HEINEKEN Ireland Sustainability Report 2011 11

Green CommerceIMPROVE

We have made a commitment to continually reduce our total carbon footprint. The segment of the beer supply chain from brewery to consumer is an area where we can make a substantial difference: this is where the majority of our carbon footprint occurs.

Page 12: HEINEKEN Ireland Sustainability Report 2011 Brewing a ... · • HEINEKEN in Ireland is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world, committed

100%Of all fridges acquiredin 2011 are based on ‘green’ technology

35%Energy savingsaccruing to customersfrom new refrigerationequipment

99%Total Company Recycling rate

Key figures

Packaging Our products are sold in a variety of recyclable package types – from bulk packaging such as beer kegs that are returnable and reusable, to cardboard boxes, aluminum cans and glass bottles. All our on trade-packaging units are 100% returnable.

Initiatives are ongoing in our efforts to reduce the carbon footprint associated with our packaging. Programs delivering on reducing thicknesses of packaging, material substitution and reusing materials – have all resulted in lower impact packaging while maintaining strict quality requirements and meeting consumer needs

We continue to work with distributors and retailers in the market, to encourage reuse and recycling.We are also a partner with an NGO recycling association namely REPAK, whose aim it is to facilitate and grow packaging recycling, based on the principle of producer responsibility,

Cooling To serve our consumers a refreshing beer, cooling is essential, but it also contributes to our carbon footprint.

We are making significant progress on reducing the environmental impacts of refrigeration units we provide to retailers and other outlets by switching to lower greenhouse gas potential refrigerants and using LED lighting and energy management devices to lower energy use.

Our focus on this area has resulted in HEINEKEN being among the first brewers in the market place to introduce hydrocarbon coolers into the business. This will generate a reduction of 35% in energy savings in customer outlets.

Another important innovation is an insulation cover for the Heineken® Extra Cold draught column. Wrapping this cover around the frozen column during off-hours can save up to 20% energy.

In 2012, HEINEKEN will launch David Green, the world’s first ‘green’ draught beer system in the Irish marketplace. This innovative system uses 75% less energy than traditional tap systems.

IMPROVE – Green Commerce

12 HEINEKEN Ireland Sustainability Report 2011

Our business’ impact on the environment extends throughout our entire supply chain, which is a challenging area. We are actively working with our supply chain partners to improve efficiency, decrease emissions and make positive changes to our logistics processes.”

Aidan McSweeney Purchasing Manager

Page 13: HEINEKEN Ireland Sustainability Report 2011 Brewing a ... · • HEINEKEN in Ireland is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world, committed

Distribution In 2011, we began measuring and reporting the carbon footprint of our distribution activities. For the first time sustainability was consistently included in our tenders for transportation for road freight and a green distribution policy was also developed.

A three-year green distribution plan namely Green Compass was drafted for the first time in 2011. This initiative incorporates the measurement and monitoring of transportation, fuel efficiencies and model efficiencies within our distribution stream. It is envisaged that outputs from our studies will allow us to focus our energies on areas were the greatest carbon reduction impact is to be had .

Innovation Innovation is a key driver of sustainability improvements. Recognizing this, we developed and rolled out an improved innovation process. The process consists of a new EcoDesign methodology and related tools that allow us to assess the environmental impact of our new products, by taking into consideration, key issues such as recyclability and the importance of optimizing material weight.

Making our events greener To support a sustainable approach of our Heineken® -sponsored music events, an event toolkit was introduced, which offers a range of ideas and strategies to reduce reuse and recycle. This has now become an integral part of our event tendering process in ensuring that our events are managed with a focus on the green agenda.

HEINEKEN Ireland Sustainability Report 2011 13

A Greener DrivingFuture in HEINEKEN

We care very much about the environmentso on review and subsequent update of our fleet policy, which caters for in excess of 200 vehicles, great care was taken to ensure that all newly acquired vehicles within the fleet would be environmentally friendly and CO2 efficient.

Carbon emissions were a key factor in the decision making process and discussions with car manufacturers, recognising that such large numbers of vehicles can have a serious impact on the environment when on the road.

In discussion with car manufacturers deciding the models of cars and vans to buy as part of our fleet policy, one of the key determining factors was in relation to CO2. There is no doubt a vehicle has the biggest impact on the environment while it is on the road. One of the key decisions made was to switch from petrol to diesel.

Having received and reviewed tenders from a variety of car manufacturers we believe our focus on four car makes for our fleet, has enabled us to dramatically reduce the carbon footprint of our vehicles. Selected vehicles now have reduced fuel consumption, thus avoiding unnecessary emissions.

Our efforts have resulted in an average CO2 reduction from 142 to 134 g/km, generatinga total CO2 reduction of 8.72 tonnes over the last year.

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EMPOWER

Engaging Employees

Brewing a Better Future has raised the awareness of the importance of protecting employee rights. We now have the right structure required to ensure proper observance of this and our Code ofBusiness Conduct. Furthermore, we have improved our training and education programmes. Safety as always, continuesto be an important focus area.

14 HEINEKEN Ireland Sustainability Report 2011

6% Decrease in accident frequency

2,000Students in our community have been taught life skills programmes by our employees.

2,500 Voluntary hours given by employees to community initiatives

Key figures

Page 15: HEINEKEN Ireland Sustainability Report 2011 Brewing a ... · • HEINEKEN in Ireland is a wholly owned subsidiary of HEINEKEN N.V., the most international brewer in the world, committed

Volunteers’ day generates goodwill throughout IrelandIn 2011, HEINEKEN Ireland declared 30 September as National Volunteer Day and for the first time in its history, every employee worked for the community in seven different regions across the country.

The chosen beneficiary was the Simon Community, an organisation that cares for the homeless. The teams worked closely with the Simon Community ahead of the event in order to understand the needs of their service users so they could put their time, energy and skills to the best possible use.

As a result, employees took part in a wide range of valuable activities: fund-raising, home improvement, gardening, catering and spending quality time with users of the Simon services. Employees found the experience rewarding, enriching and a wonderful team experience, it was indeed a special day for all.

In total, HEINEKEN Ireland employees dedicated over 2,000 hours of their time to local Simon Community project work in their respective communities throughout the nation , raising significant monies in the process.

“During these tough economic times, it’s especially important to do our part in helping people and families in need .Heineken Ireland is strongly committed to supporting the communities where we live and do business. Through our V Day activities we are proud to help those in need, contribute a positive impact to making things somewhat a little brighter for those who are less fortunate in our society.” Declan Farmer, Corporate Relations Manager, HEInEkEn.

Employees’ & Human Rights The new HEINEKEN Employees’ & Human Rights policy is a further elaboration and articulation of our Company values and was approved by the Executive Board in December 2011.

Through this new policy, we endorse the principles on employees’ and human rights, including topics such as non-discrimination, freedom of association, and harassment.

Employee Volunteering We encourage our employees to become actively involved in our communities through voluntary work. Over recent years, our employees have taught life skills programmes to over 2,000 students in our community through our partnership with Junior Achievement. Sharing work, education and life experience has exposed such students to varying careers and jobs within our community.

In 2011 however , employee volunteering took on new meaning for HEINEKEN and for the first time, HEINEKEN in Ireland shut down all its operations on Friday Sept 30 2011, which was declared V-Day.

On that day, all employees volunteered and put their time and expertise to work in aid of an organisation supporting the homeless of our society namely, the Simon Community.

HEINEKEN Ireland Sustainability Report 2011 15

Health and SafetyAt HEINEKEN, we want to ensure that our employees and the external contractors we work with can operate in a safe and healthy environment. We improved and extended the system for accident registration and reporting, thereby covering a larger part of our organisation with particular focus on preventative reporting.

In 2011, we recorded a 6% decrease in accident frequency. We continue to review the safety measures and systems across all of our business interests. In addition, we have focused on behavioural safety and established a safety culture focused on openness and effective reporting to encourage appropriate behavior, practices and procedures that avoid incidents and injuries.

Brewing a Better Future has helped transform the way we think and act. We are now consciously more responsible and engaged as employees.”

Denise Burke Human Resources Director

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HEINEKEN CaresEMPOWER

Being a responsible corporate citizen requires giving something back to the communities in which we operate. HEINEKEN Cares is our community involvement programme covering both direct support for the community as well as our efforts to create a more sustainable supply chain, from barley to bar

16 HEINEKEN Ireland Sustainability Report 2011

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For HEInEkEn in Ireland, being a better company means strengthening, improving the communities where we live, and work. That is in addition to the positive impact of the jobs we create, the local suppliers we support, the farmers we source all our malt from, and the wages and taxes we pay in supporting our local economy.”

Sandy O’RiordanC.S.R. Manager

750farm households supportedvia our focus on localMalt Purchasing

35,000 jobs are linked to our business

€100 million spent in supporting localsuppliers / economy

Key figures

Local sourcing Our local sourcing initiatives play a key role in economically and socially empowering communities. Creating a viable and a reliable local supply chain is essential to the sustainability of all businesses. A strategic focus remains in our company to support local suppliers and farmers, which in turn generates jobs and has a positive economic impact on local communities.

Working with near 1,000 local suppliers with an estimated spend by HEINEKEN in the local economy of €100m target is testament to that focus. All our malt requirements for 2011 were sourced locally, supporting in excess of over 750 farm households and injecting over €4m into the agricultural economy.

Heineken Social Investment programsThrough our social investments, volunteer programs and other donations, we continue to provide support for individuals and families in the communities we work and live as we seek to play a meaningful role in improving lives of others.

We support many charities including the Simon Community, a well-known organisation that offers support to the homeless in our society. Simon is also a preferred partner within our BaBF programme.

In addition, we also make significant contributions to local tourism through profile building, support to local public houses, festival and sport sponsorships, many of which are conducted in local communities throughout Ireland.

The economic impact of HEINEKEN Cup matches in Ireland is quite substantial, specific recent research has identified an impact of €10m in the local economy for a quarter final match alone.

HEINEKEN Ireland Sustainability Report 2011 17

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IMPACT

Responsible Consumption

Beer is a natural product enjoyed by hundreds of millions of people around the world. It is, can and should be a legitimate part of a healthy balanced lifestyle when consumed in moderation.

As one of the world’s leading brewers, we actively promote the enjoyment of beer in moderation. However, we know that there are clear health and behavioural risks associated with consuming too much alcohol, either over time or on single occasions.

18 HEINEKEN Ireland Sustainability Report 2011

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Given that HEInEkEn is Ireland’s leading lager, we have a responsibilityto make moderate drinking aspirational.”

Sharon WalshMarketing Director

100%Company compliance withmarketing codes / legislationin marketplace

32%Level of consumers associatingthe HEINEKEN brand with ‘Responsible Drinking’

4thIrish ranking in EuropeanBeer Consumption table

33%of adults in Ireland claim tohave drunk less over past year

Key figures

As an industry leader we implement a consistent, effective approach to encouraging responsible attitudes to alcohol and actively discourage abuse of alcohol.

Responsible marketing Our approach to the responsible promotion, marketing and consumption of our beers continues to be completely integrated in the way we sell our brands in the marketplace. By doing so, we continue to play an active role to support the reduction of irresponsible drinking.

As Ireland’s leading lager brewery, we know we must take the lead in encouraging consumers of legal drinking age to enjoy our products responsibly. In doing so, we continuously engage with key stakeholders, commercial and retail partners who markets, sell and serve our products to promote the responsible consumption of our products

Using our brands to encourage responsible consumption

In 2011, we continued to use Heineken®, and the Drinkaware initiative as the spearheads of our brand-related responsibility activities. HEINEKEN’s ‘Enjoy Heineken® Responsibly’ (EHR) campaign is a global initiative to inform and educate consumers about the safe and responsible consumption of alcohol.

The EHR logo and website www.enjoyheinekenresponsibly.com is included on all Heineken® packaging. The website contains practical information, advice and useful guidelines about enjoying Heineken® responsibly.

We use major event sponsorships like the UEFA Champions League and Rugby World Cup to encourage the enjoyment of beer in moderation.

HEINEKEN recently introduced a new campaign namely ‘Sunrise belongs to moderate drinkers’ which aims to make moderate consumption aspirational. The campaign was seen by approximately 2.5m adult consumers across the globe via HEINEKEN’s YouTube channel, Facebook fan page andHeineken.com.

Our employees as ambassadors for responsible consumption Amongst our employees we promote responsible drinking through our own in house alcohol polices. Our Cool@Work initiative continues to provide our employees with an understanding of their responsibilities in relation to the beers we brew and sell.

Advertising ResponsiblyTo ensure all our advertising complies with the regulatory and legislative framework, all our marketing personnel receive on going training on marketing code developments / requirements of the marketplace.

In addition, the pre vetting service of Central Copy Clearance Ireland (“CCCI”) which provides an independent pre-publication vetting service for all mainstream alcohol-related advertising, ensures our advertising complies at all times with the needs of the marketplace.

HEINEKEN Ireland Sustainability Report 2011 19

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20 HEINEKEN Ireland Sustainability Report 2011

IMPACT

As one of the Ireland’s leading brewers, HEINEKEN plays a key role together with other key stakeholders in promoting the responsible consumption of alcohol in the Irish marketplace.

Industry can be a valuable partner to encourage responsible drinking and address alcohol abuse. Working together is more powerful than organisations acting alone.

Partnerships for Progress

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HEINEKEN Ireland Sustainability Report 2011 21

Active partnership is a critical, powerful and necessary approach to addressing the complex issue of harmful drinking.”

Declan FarmerCorporate Relations Manager

25%of 18-24yr olds think2-3 drinks per houris reasonable

¤20millionIndustry investmentin five year responsibledrinking campaigns

Key figures

CommitmentWe have a clear commitment in investing time, money and the expertise of our people in what we call Partnerships for Progress. Industry groups, governments, NGOs, third parties, consumer groups, retailers, hotel, bar and restaurant owners and community groups – all have a valuable role to play in encouraging responsible consumption. We actively participate in such initiatives to prevent and address alcohol-related harm.

Our on-going support for the five year €20m industry consumer focused drinkaware campaigns is testament to our efforts aimed at changing and challenging the culture of excessive drinking in our marketplace.

The Drinkaware initiative launched in 2006 continues to promote the responsible use of alcohol, while at the same time challenging anti social drinking behaviours. Its website has emerged as one of the leading information portals on alcohol for consumers in Ireland.

Drinkaware Campaigns have highlighed the vital role of parents in determining under age attitude to alcohol consumption, the social damage that can result from drinking to excess, the unacceptable impact of drunken behaviour.

The promotion of the designated driver system incorporating the dangers of drink driving in the morning hours have all contributed to a more informed public realm on alcohol issues in our efforts to demonstrate how we should consume alcohol responsibly.

Progress on responsible consumption programmes and public comment is monitored on a regular basis. This has resulted in our responsibility programmes and education efforts being adjusted to ensure our efforts remain relevant and effective.

Simon Community In 2011, we initiated a partnership with the Simon Community, an organisation whose mission is to work in solidarity with men and women who are homeless, or at risk of becoming homeless, offering housing and support in their journey back to independent or supported living and campaigning for a society without homelessness.

Such a platform allows us the opportunity to help those who have been most effected by alcohol abuse. We continue to work with Simon in formalising our partnership structure, providing assistance and support to tackle the issue of alcohol abuse and the dangers associated with it.

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22 HEINEKEN Ireland Sustainability Report 2011

Building sustainability into performance plans For the last two years, sustainability criteria have been built into our senior managers’ performance criteria. All of our senior managers had CSR targets included in their short-term bonus-related performance objectives in 2011.

Measurement and transparency: the Green Gauge scorecard To better track and communicate our performance, we developed the Green Gauge. This scorecard allows us to monitor quarterly progress in 16 key areas. The tool was launched in July 2011 in all Operating Companies covered by the Brewing A Better Future programme.

Local sustainability reports Demonstrating our commitment towards greater transparency, we are committed in reporting our performance against our ambitions to being the greenest brewery the marketplace .In that regard we continue and remain committed to publishing an annual sustainability report, which can also be viewed online on our website.

Brewing a Better Future is a comprehensive, integrated strategy for creating a more sustainable company and future. Considering that HEINEKEN is the leading lager brand in the marketplace, it is important that we endeavor to ensure that our culture and organisation can support our ambitions.

Carbon Footprint & BenchmarkingWe have taken a huge leap forward on our journey to reduce CO2 emissions from our operations from barley to bar in 2011. In developing a tool estimating CO2 emissions based upon data that was readily available to the company, HEINEKEN in Ireland has now established a benchmark as to the total emission of green house gases utilized in the life cycle of beer production. Having such an insight as this allows us to make improvement plans in areas where it matters most.

Implementation of our Supplier Code Given that, much of our impact is outside of our direct oversight, our new Supplier Code sets out the expectations we have of our suppliers in the areas of integrity, human rights and the environment. So in signing the new document, suppliers agree, for example, to minimize their own impact on the environment and to develop environmentally friendly technologies. As of the end of 2011, 94% of our local suppliers signed the new Supplier Code.

Enabling our journey

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HEINEKEN Ireland Sustainability Report 2011 23

Let us know your thoughts! Which 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. Declan Farmer, Corporate Relations ManagerHEINEKEN, c/o Murphy Brewery, Leitrim Street, Cork, Ireland

Email: [email protected]

More information about HEINEKENand our sustainability journeywww.theHEINEKENcompany.comwww.enjoyHEINEKENresponsibly.comwww.heineken.comTwitter:@HEINEKENCorp

Please visitwww.sustainabilityreport.heineken.com

Left to right;Frank Maher, Technical Services ManagerTheresa Kiely, Environmental EngineerAidan McSweeney, Puchasing ManagerDeclan Farmer, Corporate Relations ManagerSandy O’Riordan, C.S.R. Manager

Our Brewing a Better Future team

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www.sustainabilityreport.HEINEKEN.com

www.theHEINEKENcompany.comwww.enjoyHEINEKENresponsibly.comwww.heineken.comTwitter:@HEINEKENCorp

Please visit HEINEKEN’s global 2011 Sustainability Report at

A HEInEkEn Ireland publicationHEINEKEN Murphy Brewery, Leitrim Street, Cork, Ireland

telephone +353 21 4503371fax +353 21 4503011