Sustainability Light Report 2009 Hungary · Heineken Hungária produces by-products and waste. spent grain are used as cattle food. The kieselghur (used as filter recycled. 96% of

Sustainability Light Report 2009

Heineken Hungária

... wants to be the greenest brewer in the country

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Table of contents

1 Foreword ...................................................................................................................................3

2 Company Profile .........................................................................................................................4

3 Economic Dimension ..................................................................................................................5

4 Environmental Dimension ...........................................................................................................6

4.1 Energy ...................................................................................................................................... 6

4.2 Water and waste water ............................................................................................................ 8

4.3 Waste and recycling ................................................................................................................. 9

5 Social dimension ....................................................................................................................... 10

5.1 Safety ..................................................................................................................................... 10

5.2 Reporting unsafe working conditions ..................................................................................... 11

5.3 Supply chain responsibility ..................................................................................................... 11

5.4 Responsible beer consumption .............................................................................................. 11

5.5 Integrity ................................................................................................................................. 12

5.6 Community involvement ........................................................................................................ 13

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1 Foreword

Heineken Hungária is a proud part of the Heineken Group, one of the world’s leading international

brewing companies. The Heineken Group has formulated and maintained an active strategy in the area

of sustainability. As a result, Heineken Hungária has adopted an approach to sustainability that fits in

Heineken’s global strategy to minimize possible negative effects from our business and maximize

positive ones. Concretely, Heineken has determined seven focal areas in its global strategy:

• Energy

• Water, waste and recycling

• Safety

• Agriculture

• Supply chain responsibility

• Responsible beer consumption

• Impacts on developing markets

In this leaflet, we inform you about our performance in these areas and have also included a description

of some activities we believe are relevant in our national context.

We have done a lot and we realize we still need to do a lot more. Sustainability is a journey, a quest to

improve what can be improved with the aim of making our world a better world and our company a

better company. We cannot do this alone. We need you, our internal and external stakeholders to help

us with ideas and actions. This sustainability leaflet is intended to give you an oversight of what we, as a

company do. With this information, you will be able to better understand us and to better assist us in

our quest for excellence.

“Heineken Hungary as one of the leading players in the Hungarian beer market wants to be the greenest

brewer in the country, respecting the interest of the environment, the community, the stakeholders, and

the employees in order to operate a successfully sustainable business.”

Oladele Ajayi

General Manager

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2 Company Profile

Heineken Hungária Sörgyárak Zrt. (Heineken Hungary Breweries Private Shareholding Company) owns

and operates two breweries in Hungary. Brewing traditions are well established in both Sopron and

Martfű, though each brewery has a different history.

In Sopron – centre of one of the country's historic wine-producing regions - there is a long-standing

tradition of beer brewing, and in 1895 the brewery was founded with the name Első Soproni Serfőzde és

Malátagyár (First Sopron Brewery and Malt Plant). In 1988 the brewery signed a licensing agreement

with Österreichische Brau AG: the Sopron Brewery produced and distributed Steffl beer according to the

original recipe. This agreement was followed by one for Zipfer in 1994 and another for Gösser in 1995. In

1992 the Sopron Brewery became a shareholding company, with BBAG the new majority shareholder.

The company's other brewery, in Martfű, is a younger brewery. 28 eastern Hungarian agricultural

associations and state farms founded the associate brewery in 1982 to meet the shortages at that time

on the beer market. This brewery, close to the city of Szolnok, began production in 1985, using modern

technology in an up-to-date environment which was unique in Hungary at the time.

In 1997 the Sopron Brewery merged with the Martfű First Hungarian Associate Brewery Company. From

1998 the Sopron Brewery Shareholding Company changed its name to the Brau Union Hungary

Breweries Shareholding Company to reflect its ownership. Following this, both plants underwent

significant modernisation. As a result of investment, annual production in 2001 reached 1.2 million

hectolitres in the Sopron brewery and 600 thousand hectolitres in Martfű. The 7000 square metre

warehouses at both the Sopron and Martfű plants can store up to 14 million bottles of beer.

From 2004 Amstel Breweries and Brau Union Hungary Breweries signed a production and distribution

agreement, resulting in the creation of a unique product and brand portfolio in Hungary. In 2005 the

Heineken group made a public bid for shares in Brau Union Hungary Breweries Shareholding Company,

after which the priority shares were delisted from the Budapest Stock Exchange. From June 1st, 2007

the company name changed to Heineken Hungária Sörgyárak NyRt (Heineken Hungary Breweries Public

Shareholding Company). The name change to Heineken reflects the increasing corporate value of the

company, and the image of the Heineken brand which has had a positive effect, increasing awareness

and bringing the firm closer to its consumers.

At the start of the year 2008 the Heineken group purchased the entire share package of the minority

shareholders, making the group the 100% owner. The change in ownership structure also necessitated a

change in the format of the company, and the name changed from Nyrt (public shareholding) to Zrt

(private shareholding company).

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The company presently employs nearly 600 people, with net revenues of 47.3 billion forints in 2009. It is

a market leader in several segments of the Hungarian beer market.

The company is a leader in environmental protection, and pays constant attention to helping

environmental conservation by using the most modern production methods. The brewery in Martfű was

the first in Hungary to have its own wastewater treatment plant, and the results of continuous authority

inspections show that the water quality more than meets the very strict limit value requirements of the

river Tisza. The wastewater sludge from Martfű is composted and then utilised by Hungarian agriculture,

while the plant in Sopron operates the most modern type of anaerobic wastewater treatment facility,

enabling the use of the biogas emitted by the wastewater.

Products distributed by Heineken Hungary are: Heineken, Soproni, Gösser, Amstel, Edelweiss, Kaiser,

Steffl, Zlaty Bazant, Adambrau

Official company website: www.heinekenhungaria.hu

3 Economic Dimension

Heineken Hungária is one of the largest brewing companies in Hungary. We employ almost 600 people

directly. In the sectors that supply us, there are an additional 740 jobs in Hungary while in the hospitality

sector around 5,900 jobs can be attributed to our activities. Including some 700 jobs in retail, the total

employment related to our brewing activities is around 8,000.

In 2009, the Hungarian government received a total of 19.8 billion forints excise duties, VAT, income

taxes and corporate and other taxes.

Heineken Hungária has a policy in place that favours local suppliers - 59% of our supplies came from

Hungarian companies in 2009.

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4 Environmental Dimension

Heineken Hungária has the certificated Environment Management System (ISO 14001) since 2000.

According to our environment policy our company has committed itself to decrease the effects of beer

production on the environment:

“The environmental protection has been handled as one of the most important issues of the company.

We are continuously controlling the impact of our activities and products on the environment and nature

and these play an important role in the setting of our environmental targets. We are doing our everyday

work in harmony with our environment, and improving our environmental performances with the help of

preventing environmental load and initiating environmental friendly solutions. The management of our

company is engaged to decide according to these ideas and demand the same behaviour from every

colleague.”

In line with Heineken policy, we focus our attention on energy and water consumptions. In addition to which we have a lot of activities to increase the recycling ratio of our by-products, industrial and

packaging waste.

4.1 Energy

Energy is important to our company. First and foremost, it is a scarce resource that comes at a cost.

Secondly, burning fossil fuels contributes to global warming and we feel a responsibility in reducing our

carbon emissions in order to help reduce the problem.

Over the past year, our specific thermal energy consumption (the thermal energy (heat) we need to

brew one hectolitre of beer) has decreased by 7% from 98,4 to 91,2 MJ/hl. This improvement is mainly

due to a better performance of the Sopron site, where our Total Productive Management programme

delivered considerable results. Overall, Heineken Hungária performs a little above the Heineken Group

average of 89 MJ/hl.

Our specific electricity consumption

decrease by 6% from 8.10 to 7,64 kWh/hl from 2008 to 2009. This is lower than the Heineken average of

8,99 kWh/hl and our internal target was met.

cific electricity consumption (the electricity we need to brew one hectolitre

64 kWh/hl from 2008 to 2009. This is lower than the Heineken average of

target was met.

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hectolitre of beer) saw a

64 kWh/hl from 2008 to 2009. This is lower than the Heineken average of

As a result of our lower thermal energy and electricity consumption, t

emissions in kg per hectolitre of beer have

is lower than the Heineken average

4.2 Water and waste water

Water is our most important raw material

installations.

From 2008 to 2009, our specific water consumption

hectolitre of beer) fell by 9% from 4

hl/hl. Our internal target was only just missed

water consumption, with Sopron contributing

in the packaging mix, reduction of losses and continuous training and awareness of operators.

s a result of our lower thermal energy and electricity consumption, the resulting direct and indirect CO

emissions in kg per hectolitre of beer have decreased by 19% from 10.1 in 2008 to 8

is lower than the Heineken average of 9,4 kg CO2/hl and our internal target of 8,3 kg/hl was met.

and waste water

raw material. In addition, we also use water to clean our bottles and

specific water consumption (the quantity of water needed to brew one

from 4,3 to 3,9 hl water/hl. This is lower than the Heineken average

only just missed. Both our Martfű and Sopron breweries

water consumption, with Sopron contributing the most in absolute figures. This


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resulting direct and indirect CO2

to 8,2 kg/hl in 2009. This

3 kg/hl was met.

. In addition, we also use water to clean our bottles and

(the quantity of water needed to brew one

9 hl water/hl. This is lower than the Heineken average of 4,77

breweries improved their

is the result of a change


Next to water consumption, we pay attention to the quality of the wastewater we return to the

environment. The effluent organic load to surface water

4.3 Waste and recycling

Like every industry, the business of

of this waste and by-products are recycled.

By-products like surplus yeast and

agent by beer processing) and waste water sludge is used in the agriculture as soil improver. The other

wastes (like packaging material) are collected separated and

and waste are re-used or recycled.

We also take care of the packaging waste which is produced by selling one

multipacks etc). Heineken Hungá

recycling coordination company in

symbol and is responsible for the


organic load to surface water remained stable at 11 tonnes COD in 2009.

Like every industry, the business of Heineken Hungária produces by-products and waste.

products are recycled.

and spent grain are used as cattle food. The kieselghur (used as filter


wastes (like packaging material) are collected separated and recycled. 96% of the produced by

used or recycled.

the packaging waste which is produced by selling one-way beer packaging (cans,

). Heineken Hungária is a founding member of Öko-Pannon, the

ecycling coordination company in Hungary. Öko-Pannon is the owner of the Hungarian Green Dot

for the collection and recycling of packaging waste in Hungary.

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remained stable at 11 tonnes COD in 2009.

products and waste. However, most

are used as cattle food. The kieselghur (used as filter


recycled. 96% of the produced by-products

way beer packaging (cans,

biggest packaging waste

Pannon is the owner of the Hungarian Green Dot

packaging waste in Hungary.

5 Social dimension

In line with the Heineken global strategy, we focus on safety, supply chain responsibility, responsible

beer consumption, integrity and community involvement

5.1 Safety

The safety of our workforce is of

accidents per 100 FTEs) has decreased

Group average value of 1.5 cases/100 FTE.

Sopron brewery, while our facility in

Our accident severity value decreased from

accident severity of Heineken Hungá

accident frequency of 53 lost days per 100 FTE's for 2009.

In 2009, we started with Total Productive Management (TPM),

One of the pillars of this programme is the

is to use the advanced tool of the TPM methodology to reach our Safety Vision: “Zero accident brewery

operation”.

The Mission of the Safety Pillar is: “

improving the safety awareness of people and establishing a system in which we can report and analyse

all accident, incident, near misses, unsafe working condition and behaviour.

lobal strategy, we focus on safety, supply chain responsibility, responsible

beer consumption, integrity and community involvement.

The safety of our workforce is of the utmost importance to us. Our accident frequency

has decreased from 1.19 to 0.42 cases/100 FTE. This is lower than the Heineken

average value of 1.5 cases/100 FTE. The improvement is due to a better performance

our facility in Martfű continued to operate without any accidents.

decreased from 40 to 12 lost calendar days/100 FTE from 2008 to 2009. The

Heineken Hungária is significantly better than the average reported Heineken

accident frequency of 53 lost days per 100 FTE's for 2009.

al Productive Management (TPM), our strategic improvement program

One of the pillars of this programme is the Safety Pillar for both of the breweries. The aim of this activity


The Mission of the Safety Pillar is: “Evaluate all potential safety risks and eliminate


all accident, incident, near misses, unsafe working condition and behaviour.”

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lobal strategy, we focus on safety, supply chain responsibility, responsible

accident frequency (the number of

1.19 to 0.42 cases/100 FTE. This is lower than the Heineken

improvement is due to a better performance at our

operate without any accidents.

days/100 FTE from 2008 to 2009. The

better than the average reported Heineken

our strategic improvement programme.

both of the breweries. The aim of this activity


tial safety risks and eliminate them by means of


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5.2 Reporting unsafe working conditions

The key to reach or Safety Vision: “Zero accident brewery operation” is to involve the shop floor people

on safety issues. It has a simple reason: they are working all day long with the machines they are the

ones who see the first time the small and also bigger problems, E.G. slippery surfaces, hot surfaces,

missing or damaged safety covers and so on. Based on that idea we introduced a safety tagging system.

Operators, maintenance staff have to write a tag (small failure record) about dangerous working

conditions. We collect these records in a register in which we indicate the responsible person and

deadline to remove the tag (eliminate the problem). In 2009 we eliminated more than 280 safety tags

which means that we have eliminated the same number of possible source of incident or accidents.

5.3 Supply chain responsibility

We have implemented the Heineken Supplier Code, holding requirements in the areas of integrity,

human rights and environmental management in our purchasing processes. This means that we ask our

suppliers to confirm their compliance with the provisions of the Supplier Code in all contracts where we

issue a tender or where we believe there could be a risk of non-compliance with the provisions of the

Supplier Code. To date, 20% of our suppliers have returned our compliance statement. There are no

known cases of non-compliance.

5.4 Responsible beer consumption

Our policy to promote responsible consumption focuses on four different areas:

1. Alcohol consumption by our own employees

2. Responsible commercial communication

3. Promoting responsibility

4. Engaging in partnerships that tackle alcohol abuse and misuse

Cool@Work

Our Cool@Work programme aims to teach our employees how to deal with alcohol. We have a formal

policy on this issue as well as rules on the consumption of alcoholic beverages on our premises. Every

employee receives training on it as part of their induction programme. Periodically, we re-emphasize the

importance of our internal alcohol policy through internal media such as articles in our employee

magazine, posters and through our intranet.

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Responsible advertising

Heineken Hungária follows the Heineken Rules for Responsible Commercial Communication. We have a

written approval procedure for all our commercial communication. People who work in our marketing

and sales department and who have decision or budget authority are regularly trained on the content

and application of our rules. We also follow the strict rules of self-regulation. We undergo the rules of

the Ethical Code of the Hungarian Self-Regulatory Body and follow the Ethics Code of the Association of

Hungarian Brewers as a responsible player of the brewing industry. As a result of our efforts, in 2009, we

did not suffer any complaints regarding our commercial communication.

Promoting responsibility

We print an “Enjoy Responsibly” message with a reference to their responsible consumption websites

on all our packaging for the Heineken, Soproni and Gösser brands – labels of bottles and cans, multipack

packagings. For the Heineken brand we have implemented the Know The Signs campaign, an online

awareness campaign that demonstrated the various unwanted effects associated with drinking too

much.

Partnerships

In co-operation with EIKKA, Est Media Group and Sziget Ltd. we started a new program called “Where is

the limit? See clearly, decide responsibly” in 2009. The partners in this initiative want to draw the

attention to young adults in risk groups to the fact that irresponsible alcohol consumption can lead to

serious problems and thus to help them to make their drinking decisions responsibly. The programme

also aims to widen the knowledge about alcohol, to support preparation of the conscious consumer

decision, and to generate the topic of conscious and responsible alcohol consumption in the media.

The result of the programme during the first few months after the launch was 13.500 viewers on

www.holahatar.hu and 50.000 downloads of the videos prepared at our sponsored events based on the

research results made by EIKKA.

5.5 Integrity

At Heineken Hungária, we value integrity in everything we do. We actively inform and where necessary

train new employees in the application of our Code of Business Conduct. Every employee signs a

declaration of awareness after entering the company. The information is available in the Employee

Brochure that everyone receives. We also reinforce the topic in staff meetings. Through our whistle

blowing procedure, employees can report infringements.

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5.6 Community involvement

Heineken Hungária wants to be an active and valuable part of the communities in which we operate. To

this end, we are an active supporter and sponsor of local initiatives. In 2009, we invested three million

forints in cash in community projects. Our most important programs in this respect are connected to

Sopron and Martfű; the two cities where we operate.

Heineken Hungária’s initiative to support the communities living in the towns which are home to the

company's breweries can already be described as traditional. The charity program entitled "Heineken

Hungária for Sopron and Martfű" started in 2008, continued in 2009, and was warmly welcomed right

from the start by the towns' inhabitants. For the company, the greatest achievement is seeing the

objectives set by the candidates taking part in the charity program finally become a reality.

The main patrons of the program are the mayors of the towns, whose task each year is to nominate the

three foundations or associations which will compete for the financial award donated by us. The

nominated candidates have to set an objective which they will put into practice should they win.

On the official websites (www.heinekensopronert.hu and www.heinekenmartfuert.hu ) citizens can vote

for their chosen candidate during a one month period. The candidate that receives the most votes on

the website is awarded the financial support.

Representatives of the winners in Sopron in 2009, the "Frigyes Rösch Foundation for Fire Protection in

the City of Sopron", donated the money to the local fire brigade, who bought 144 pairs of special

protective gloves, making it easier for them to carry out their life-saving work. In Martfű in March 2010,

the "Good Hope Club Association" organised a Health Day in the town, during which local residents were

offered medical screening examinations which are otherwise not available in the town. Thanks to the

support funding, more than 200 people were able to have special medical check-ups for free.

- end -

This is the first Sustainability Light report published by Heineken Hungária. We welcome any feedback

on the content of this report. Feel free to contact us via email: [email protected]

Documents

Sustainability Light Report 2009 Hungary · Heineken Hungária produces by-products and waste. spent grain are used as cattle food. The kieselghur (used as filter recycled. 96% of