Brewing a Better Future

 Sustainability Report 2012 Brewing a
Better Future
Improve
Empower
Impact
2
00 HEINEKEN USA
Sustainability Report 2012
Welcome Welcome to Our 2012
Sustainability Report
We at HEINEKEN USA are committed to our
global initiative to become the world’s greenest
international brewer. This report describes some
of our key efforts in 2012, the third year of our
Brewing a Better Future journey.
Contents
Company Profile
HEINEKEN USA, Inc., formed in 1995,
acts as an operating company of
HEINEKEN International. Our flagship
Heineken® brand began selling in the
EMPLOYEES
U.S.
in the 1880s. The company is the
Green Brewer
06
number two beer importer in the U.S.
Green Commerce
07
market and holds approximately a 4%
Engaging Employees
08
market share. HEINEKEN USA has two
Heineken Cares
09
corporate offices, in New York City and
Responsible Consumption
10
Partnerships for Progress
11
BRANDS
White Plains, N.Y., and three regional
sales offices, in Atlanta, Ga.,
Enabling our Journey
12
Downers
Grove, Ill., and Long Beach,
®
Stakeholder Engagement and Dialogue 13
Calif. HEINEKEN USA imports beer
Benchmarks and Achievements
14
ENJOYED
INfrom five breweries in three countries
The Years Ahead
16
through more than 20 points of entry
to the U.S. The HEINEKEN portfolio in
the U.S. includes 19 brands: Heineken,
COUNTRIESHeineken Light, Heineken Dark and
Amstel Light, Amstel Wheat, and
Buckler (The Netherlands), Dos Equis
Ambar, Dos Equis Lagar, Indio, Tecate,
Tecate Light, Sol, Bohemia and Carta
Blanca (Mexico), Newcastle Brown Ale,
Newcastle Summer Ale, Newcastle
Werewolf, Newcastle Winter IPA and
Newcastle Founder’s Ale (UK).
CEO Message Brewing a Better Future Foreward
Value Chain
491
01
02
03
04
19
Heineken
178
491
EMPLOYEES
19
BRANDS
Heineken®
ENJOYED IN
178
COUNTRIES
HEINEKEN USA 01 Sustainability Report 2012
CEO Message It has been three years since
HEINEKEN launched Brewing a Better
Future. In that time, we have created
business priorities that integrate and
in some cases rely on Brewing a Better
Future for their success. Globally, our
priorities are clear:
• Grow the Heineken® brand
• Be consumer-inspired, customer-
oriented and brand-led
•
Capture the opportunity in emerging markets
•
Leverage the benefits of HEINEKEN’s global scale
•
Drive personal leadership
• Embed and integrate sustainabilty
To tackle these priorities, we renewed
our commitment to our company’s
culture and reinforced the challenger
mindset. Nearly one third of our entire
staff joined the organization in 2012.
The new arrivals and a clear peoplefocused agenda are fostering our
culture of transparency, candor and
innovation—valuable traits for any
entrepreneurial company and critical
as we approached our business
objectives in a new way.
Our senior leaders, for example, have
agreed to incorporate sustainability
targets into their performance reviews.
One of their objectives is to encourage
our suppliers to join our sustainability
journey by signing our supplier code,
which commits them to running their
businesses sustainably and helps us to
evaluate risks. Every HEINEKEN
department—from supply chain to
finance—has a sustainability agenda.
Its objectives are monitored by the
management team members, who
themselves have sustainability targets.
Sustainability is often misconstrued
as merely being “greener.” In the beer
business, being responsible is equally
important. Since its inception in 1864,
HEINEKEN has promoted the notion
that beer can be a part of a healthy
and balanced lifestyle when
consumed in moderation. From our
beer trade group, the Beer Institute’s
advertising and marketing code, on
down to our local brand promotions,
we remind consumers that our
products should be enjoyed
responsibly.
Of course, we would not be successful
in our Brewing a Better Future agenda
or our business without you, our
stakeholders. We are very grateful to
those people and organizations that
not only share in our success but also
respond candidly to our reputation
research, helping us identify areas in
which we can improve.
On a final note, I would like to thank
the employees who worked to create
this report and achieve the successes
on these pages. I’m convinced our
program and company changes are
bringing new creativity and
momentum to our sustainability
agenda and to our business.
Regards,
Dolf van den Brink
President & CEO
“We are very grateful
to those people and
organizations that not
only share in our
success but also
respond candidly to
our reputation
research, helping us
identify areas in which
we can improve.”
02 HEINEKEN USA
Sustainability Report 2012
Overview Brewing a
Better Future
Brewing a Better Future is HEINEKEN’s long-term,
integrated approach to creating genuine shared
value for all our stakeholders. Sustainability is part
of how we manage our business.
Brewing a Better Future was introduced in April
2010 and born out of close discussion with
our stakeholders. It has provided the company
with a roadmap and reflects our ambition to
become an even greener business.
Brewing
a Better Future
To Be the
World’s Greenest Brewer
Green
Brewer
Improve
Empower
Impact
Continuously improve
the environmental
impact of our brands
and business
Empower our
people and the
communities in
which we operate
Positively impact
the role of beer
in society
Green
Commerce
Engaging
Employees
HEINEKEN
Cares
Responsible
Consumption
Partnerships
for Progress
Governance, Senior Management Incentives,
Reporting and Transparency, Supplier Code, Communication and Engagement
HEINEKEN USA 03 Sustainability Report 2012
Foreward
Welcome to the HEINEKEN USA 2012
Sustainability Report. I always enjoy
this report, as it wraps our many
programs into one great sustainability
story.
In last year’s report we assessed how
we measured up against our Brewing a
Better Future agenda. In 2012,
HEINEKEN USA continued to build on
the three strategic imperatives:
volunteered and gave generously to
local charitable causes, through
programs like Days of Giving and
HEINEKEN with a Heart. And we
partnered with our 491 employees in
the fall of 2012 to donate more than
$100,000 to help communities
ravaged by Hurricane Sandy.
Just one measure of the IMPACT that
our beer plays in society is our
expanded engagement with Taxi
• To continuously IMPROVE the Magic, an app that helps consumers
environmental impact of our find and call a cab. HEINEKEN USA
brands and business
supported more than 100 events
• To EMPOWER our people and the sharing this practical app,
contributing to a 78% increase in
communities in which we operate
rides. Additionally, 2012 market
• To positively IMPACT the role of research shows that we are hitting the
beer in society
right audience. The most frequent
users of the Taxi Magic app used it to
There are so many surprising ways for
an importer like HEINEKEN USA to give get home safely after having a drink
the environment a hand. Our corporate on a night out.
offices in White Plains, N.Y., renovated
Finally, Brewing a Better Future would
in 2011, earned LEED Gold certification not be sustainable without the right
from the U.S. Green Building Council in ENABLERS in our structure. Every one
2012. Every year, our colleagues in the of our senior managers agreed to
Netherlands, Mexico and the U.K.
make sustainability one of the five
search relentlessly for ways to use less merit areas evaluated in their 2012
heat, electricity and water in their
performance review. We also asked
breweries. Thanks to their efforts in
our suppliers to sign a new code
2012, we were able to take several new committing to uphold our standards
steps to IMPROVE the energy
of integrity, environmental sensitivity
efficiency it takes to create a bottle of
and human rights.
Heineken.
“In year three of our
Brewing a Better
Future journey, we’ve
begun to build
momentum.”
These achievements—and many
more you’ll read about in this
report—are evidence that in year
three of our Brewing a Better Future
journey, we’ve begun to build
momentum.
Stacey Tank
Senior Vice President
Corporate Relations
In 2012, we sought to EMPOWER our
people and the communities in which
we operate. We continued to support
the work of the Health Alliance on
Alcohol to prevent underage drinking.
Our employees and consumers
Looking ahead to Brewing a Better Future in
2013-2015, we have reviewed our priorities and
created a more focused sustainability agenda.
Read more on pages 16 and 17.
04 HEINEKEN USA
Sustainability Report 2012
Overview Value
Chain
From barley to bar, we set
improvement targets throughout the
value chain. We also calculate the
carbon footprint for our value chain,
to better understand the hotspots
and identify areas for improvement.
GLOBAL
Agriculture
Malting
Brewing
Packaging materials
GLOBAL
Growing crops
Our main raw materials are
barley and hops. Barley for
malting represents about
1.4% of all the grains that are
harvested globally, and
HEINEKEN is one of the
world’s top three users of
malting barley.
We co-operate with industry
initiatives such as the
Sustainable Agriculture
Initiative (SAI) to address
all angles of sustainable
agriculture.
Malting barley
HEINEKEN malts barley in
its own malteries and in
those of third parties. The
process consumes energy
and water, so HEINEKEN
implements active energy
and water reduction
programs in its own
malteries.
Brewing beer
The brewing process also
consumes energy and water.
Reducing energy
consumption means
increasing energy efficiency
and switching to alternative
energy sources. Water
reduction is mainly achieved
by optimizing the brewing
process. Every brewery has
an improvement target.
Producing bottles, cans
and kegs
Beer is packed in cans,
bottles and kegs. Reducing
the environmental impact
of our packaging can be
achieved by optimizing the
production process,
changing the designs and
increasing the recycling and
reuse rates. HEINEKEN is
working to identify
improvement opportunities
in the packaging mix.
HEINEKEN USA 05 Sustainability Report 2012
Carbon footprint breakdown of HEINEKEN USA
From barley to bar
• Agriculture
• Malting and adjunts
• Beverage production
Packaging material
• production
• Distribution
• Cooling
7%
4%
26%
10%
USA
15%
38%
U.S.
Distribution of beer
Customers
Consumers
U.S.
Distribution
After the beer is packaged,
it is shipped to a warehouse
or customer using several
forms of transport, including
truck, inland barge and sea
freight. We at HEINEKEN
USA identify efficiencies in
our distribution by selecting
the most optimal form of
transport and route to
consumers.
Cooling and recycling
Beer is cooled at the point
of consumption via
refrigerators or draught
equipment. While
HEINEKEN USA buys few
refridgerators due to legal
restrictions, all refrigerators
purchased now comply with
defined green standards.
Responsible consumption
We have promoted the
responsible consumption of
beer for decades. In the
1960s, HEINEKEN USA
introduced self-regulatory
codes banning
advertisements that might
appeal to those under the
legal drinking age. Today
our standards for
responsible commercial
communication have
evolved into a far-reaching
set of rules.
Improve
06 HEINEKEN USA
Sustainability Report 2012
Green Brewer
MPG for new fleet vehicles up 18.3%
• LEED Gold certification for White Plains h
Being a green brewer is about how we
operate inside as well as out. That’s
why HEINEKEN USA examines its own
employee practices to see how they
can be improved.
MPG FOR NEW
EMPLOYEE
FLEET
VEHICLES
UP18.3%
LEED
GOLD
CERTIFICATION
Green Offices
In 2012, our headquarters in White
Plains, N.Y., was certified by the U.S.
Green Building Council as meeting
the Leadership in Energy and
Environmental Design (LEED) Gold
Standard. Our other key offices around
the country are in buildings that meet
Energy Star Standards.
Green Fleet
We’ve again lifted the efficiency of
our corporate automobile fleet, from
an average of less than 19 miles per
gallon two years ago to 20.1 miles per
gallon in 2012.
Vehicles that were cycled into the
2012 fleet showed a healthy 18.3%
average jump in MPG. We continued
to push for improvement in vehicle
choices offered to employees in the
2013 cycle. For example we now offer
four-wheel drive vehicles to employees
living in snow-belt states. And hybrid
cars now make up 7% of our total
fleet.
“An increase in our
fleets miles per gallon
is sustainable for both
the environment and
our business.”
Jose Luis Velasquez
Senior Vice President
The People Department
FOR WHITE
PLAINS
HEADQUARTERS
Over
UN G
World
U.S. E
U.S. C
HEINEKEN USA achieves LEED Gold
In July 2012, the U.S. Green Building Council awarded HEINEKEN
USA’s headquarters in White Plains, N.Y., LEED Gold certification.
The council acknowledged that our renovation shrank our carbon
footprint and preserved natural resources. The new offices use 32%
less water, are illuminated by daylight and super-efficient LEDs and
incorporate non-toxic, low-emission materials. More than 85% of
the materials were recycled from the original building. We even
reduced the amount of actual space we use, from 60,000 square
feet to 50,000.
Green Commerce
Alex Jackson
Senior Vice President
Operations
“HEINEKEN USA
carefully looks across its
entire supply chain for
efficiencies that are
both good business and
environmentally
friendly..”
We at HEINEKEN USA also track our
carbon footprint. Our 2011 results
offered an opportunity to improve,
and we did just that. We’ve piloted a
number of new ports in order to get
our products closer to customers and
consumers. Initial results have been
positive overall. And we’ll make
additional changes in 2013.
Our 2012 carbon footprint increased
by 2%. What happened? Our early
analysis shows that two key events in
our intermodal transport—how our
beer moves around the country—
contributed. First, we had a spike in
sales of our Dutch portfolio in the first
quarter. Second, HEINEKEN USA
conducted a voluntary national brown
bottle recall. As with any recall, it
meant a lot of product movement to
replenish the recalled product.
Deeper analysis is underway to isolate
and evaluate the positives and
unexpected negatives. The uptick in
2012 will help us better understand
the levers that affect our carbon
footprint. We’ll use what we learn to
continue improving.
In 2011, HEINEKEN USA committed to
working with vendors who had earned
the Environmental Protection Agency’s
SmartWay Transport certification. In
2012, we ourselves were SmartWay
Transport certified. Joining this
program as a shipper commits us to
meeting not only its current
benchmarks but also the tougher
standards it will set in the future.
Breweries Continue to Improve Year Over Year
HEINEKEN USA is an import business. We benefit enormously from the hard
work done by our brewery colleagues overseas. In the U.K., our Tadcaster
brewery reduced their water usage from 4.92 to 4.86 hectoliters of water
per hectoliter of beer, through changes to water handling in the bottle
pasteurizer. Water use for that function was reduced by an astonishing 30%.
In Monterrey, Mexico, our brewery team began heating one of their four storage
tanks of fuel oil with water from our boilers, reducing the megajoules (MJ) of
steam energy used by 8%. And in the Netherlands, our water usage at the
Zoeterwoude Brewery is only 3.5 hectoliters of water per hectoliter of beer. Since
2008, water usage has declined by 4%.
130
SUSTAINABLE
PACKAGING IDEAS
SUBMITTED
TO OUR
GLOBAL OPEN
INNOVATION
PLATFORM
GLOBALY
93%
OF NEW
FRIDGES
ARE GREEN
Improve
HEINEKEN USA 07 Sustainability Report 2012
Empower
08 HEINEKEN USA
Sustainability Report 2012
Engaging Employees
Brewing a Better Future has become
part of how we think and act every
day.
INNOVATION
ENCOURAGES
TRANSPARENCY
AND OBSTACLE
Our internal policies safeguard
employees and others and help to
ensure a safe, healthy working
environment for all. In 2012, two new
global policies were introduced. The
first is our new Global Occupational
Health and Safety Policy, which takes
the International Labor Organization
standards and recommendations as a
reference to set internal objectives.
The second policy, our new Employees’
& Human Rights Policy was effective
as of January 1, 2012, and endorses
the principles enshrined within the
Universal Declaration of Human
Rights and
the Core Conventions of
EVENTS
RAISED
the International Labor Organization.
The policy lays out 11 clear standards
on employees’ and human rights,
including non-discrimination, forced
labor and harassment.
20
BUSTING HEINEKEN
WITH A HEART
$130,000
27
MARKETS
The HEINEKEN USA management
team meets regularly with an elected
employee council, called the Climate
Survey Advisory Council. The council
holds the management team
accountable to commitments
has
TOOKit PART
IN
made to employees. VOLUNTEERING
OR FUNDRAISING
ACTIVITIES
Unique and transparent
communication channels like these
have led to successful and sustainable
business practices. In 2012, for
example, more of our field sales
managers began viewing and revising
documents digitally, on papersaving
tablet computers. We expect 150 field
managers to be using iPads by the end
of 2013.
Julie Kinch
Senior Vice President
Legal
75
EMPLOYEES
At HEINEKEN USA employees receive
regular training on laws, ethics and
how to recognize the effects of alcohol
and prevent drunk driving. We strive to
teach those policies—some of which
were updated in 2012—in innovative
VOLUNTEERED
ways that support our culture.
CLIMATE
COUNCIL FOR OUR
WHITE PLAINS
SURVEY
ADVISES THE
MANAGEMENT
TEAM
A special “obstacle busting” team led
human
resources and fully
DAYbyOF
GIVING
supported by our sales teams meets
regularly to identify issues that stand
between us and success. Team
members then work across our
organization to identify solutions,
often with positive business and
environmental impact.
“HEINEKEN USA
employees are
innovative and
regularly challenge
the status quo. It is
inspiring and
impactful.”
Women’s Leadership Forum
Researchers have found that companies that succeed at
boosting the number of women in their senior management
tend to perform better. The HEINEKEN USA Women’s
Leadership Forum offers women throughout our company
training and networking opportunities and has helped female
employees connect with mentors. Co-founded in 2007 by
Senior Vice President, Julie Kinch and Market Manager Lynn
Severson, the forum has grown modestly but steadily thanks
to the efforts of other HEINEKEN USA leaders like Kelly Drew,
Gwen Kinsella and Julienne Loaiza. In 2012, it joined the
HEINEKEN Cares
Scott Blazek
Senior Vice President
Sales
Our company can’t create a more
sustainable world on its own. So at
HEINEKEN USA, we look for ways to
empower others.
We start with our employees. In 2012
we continued our annual Day of
Giving program, where in our
[[Infographics]]
employees volunteer for a local
charity. Seventy-five HEINEKEN USA
• 20 Heineken
with a from the WhiteINNOVATION
employees
Plains and
ENCOURAGES
Heart eventsNew
raised
York City offices painted
railings,
TRANSPARENCY
a
$130,000 spruced up a gazebo and stained
AND
OBSTACLE
“Sustainability isn’t just
new sun shelter at Hudson Park in New
about the environment.
Rochelle, N.Y. A parks official estimated
volunIt is a broad business• 75 employees
that our work saved the city at least
teered for our
White
initiative with programs
$15,000.
20
BUSTING HEINEKEN
000
like our retail
Plains Day of Giving
partnership program,
In the fall of 2012, HEINEKEN USA
HEINEKEN with a Heart.”
employees turned their attention to
east coast towns and cities recovering
from Hurricane Sandy. The
management team offered a
five-to-one match for all employee
donations to the Red Cross Sandy
Relief fund. In total, HEINEKEN USA
donated $100,000 after the storm.
CLIMATE
COUNCIL
We also harnessed the generosity of
our consumers, through a retail
program we ran in partnership with
Outback Steakhouse calledADVISES
HEINEKEN THE
MANAGEMENT
with a Heart. A total of nearly
3,000
people attended 20 HEINEKEN with a
Heart events in 2012. They enjoyed
our beers, tasted Outback’s appetizers
and raised a total of $130,000 to
benefit more than a dozen charities
across the U.S.
SURVEY
WITH A HEART
EVENTS RAISED
$130,000
75
EMPLOYEES
VOLUNTEERED
FOR OUR
WHITE PLAINS
DAY OF GIVING
TEAM
national Network of Executive Women, bringing our employees access to more local events and unique networking
opportunities. And at our national sales conference, the group held a meeting and panel discussion attended by
more than 100 people—nearly 40 of them were men. Says Severson: “Whenever you bring
together a group of like-minded people, you feel that energy, and it’s empowering.”
Empower
HEINEKEN USA 09 Sustainability Report 2012
Impact 10 HEINEKEN USA
Sustainability Report 2012
Responsible Consumption
100
% OF
EMPLOYEES ARE
TIPS TRAINED
Enjoy Responsibly
Responsible consumption is a
cornerstone of our business, and we
drive home the message to consumers,
employees and even our distributer
partners.
HEINEKEN USA employees participate
in a program called TIPS —“Training
MPG
FOR NEWProcedures”— to
for
Intervention
EMPLOYEE
recognize
the potentially harmful
effects of alcohol. Those who drive
must participate in an online safetyVEHICLES
training regimen that emphasizes a
%
prohibition on drinking
and driving.
INCREASED ENGAGEMENT
WITH TAXI MAGIC,
CONTRIBUTING TO A
78% INCREASE
IN RIDES
3m
VIEWS OF THE
‘SUNRISE’ CAMPAIGN
IN THREE WEEKS
• LEED Gold certification for White Plains headquarters
FLEET
UP18.3
HEINEKEN USA
Lesya Lysyj
Senior Vice President
Marketing
MPG
for new fleet vehicles up 18.3%
HEINEKEN USA ad campaigns adhere
to rules for responsible commercial
communications set by HEINEKEN
globally. The campaigns voluntarily
comply with the advertising and
marketing code of the Beer Institute,
the beer trade group, and are
periodically audited by the U.S. Federal
CERTIFICATION
Trade
Commission. We internally review
FOR
WHITE
and
respond
to consumer criticisms
about our ads. And the Beer Institute
HEADQUARTERS
reviews
and publishes responses to
complaints about ads. Its code was
updated in 2012 to support responsible
marketing in social media.
LEED
GOLD
PLAINS
HEINEKEN goes beyond policies and
codes to promote modern, practical
solutions for consumers. In 2012 we
integrated Taxi Magic into more than
100 events across multiple brands. This
increased engagement with Taxi Magic
contributed to a 78% increase in rides.
“Our Heineken
consumer is a Man of
the World who looks
for smart ways to help
him navigate in any
situation. Taxi Magic
is a great tool to help
him open his world.”
Over 100 of stakeh
Responsible Marketing
UN Global Compac
Our rules on responsible commercial
World Economic Fo
communication help everyone involved
in marketing and selling our products
U.S. EPA SmartWay
to ensure we do not contribute to
excessive consumption or misuse.U.S. Customs & Bor
Recognizing the need for more
detailed guidance in the digital
environment, HEINEKEN introduced
new rules on digital commercial
communication in June 2012. These
rules cover areas such as video use,
online privacy and security, with a
specific focus on age verification,
particularly in social media.
1864 Responsibility Award
HEINEKEN USA holds itself to a high standard for business practices relating to
responsible consumption and challenges its business partners to do the same.
The 1864 Award for Responsibility is given each year to the distributor partner
who best exemplifies our high standards.
Our 2012 winner, DBI Distributing of Sacramento, Calif., and finalists Harbor
Distributing of Anaheim, Calif. and Andrews Distributing of Dallas, Texas all
follow rigorous internal policies that promote responsible alcohol use and
external practices that discourage underage drinking. These leaders also
promote safe transportation alternatives for consumers who choose to drink,
like our HEINEKEN USA sponsored Taxi Magic program.
HEINEKEN USA 11 Sustainability Report 2012
Partnerships for Progress
Stacey Tank
Senior Vice President
Corporate Relations
“Engaging the right
partners across
government, industry
and community makes
our projects smarter
and the results
stronger.”
Partnerships for Progress
HEINEKEN USA fosters special
partnerships to magnify its positive
impact on society. Our philosophy is
to focus on making a difference
where our employees live and work.
encourage them to talk about alcohol
with their children. And the alliance
not only gives us opportunities to
work with our local community, it
offers our distributor partners
resources they can use to help
underage drinking in communities
outside our immediate reach.
As part of our serious commitment to
responsible advertising, we maintain a
partnership with the Effie organization.
The Collegiate Effie PSA Challenge
underscores the importance of
public­-service messaging by
challenging students 21 and older to
develop creative marketing campaigns
to promote responsible consumption.
The campaigns are built around the
Heineken® brand.
At a conference organized by the
International Center for Alcohol
Policies in Washington D.C. in October
2012, HEINEKEN joined 11 other
global alcohol businesses to launch a
wide-ranging set of commitments
aimed at reducing the harmful use of
alcohol. These commitments cover five
key areas, including underage drinking,
drinking and driving, and responsible
product innovations. They will be
implemented throughout the
HEINEKEN business over the
next five years.
One such partnership is the Health
Alliance on Alcohol, our seven-year
project with White Plains Hospital,
New York Presbyterian Healthcare
System and Morgan Stanley
Children’s Hospital. The HAA
provides practical tools to parents to
New Year. Safe Ride
For nearly a decade, HEINEKEN USA has partnered with our local
community in White Plains, N.Y. to provide to consumers a free,
safe ride home on New Year’s Eve. The effort involves the
Westchester County district attorney and executive’s office the
City of White Plains mayor, police and business improvement
district and the Westchester County Chapter of MADD. A press
conference was held to promote the program in early December,
and starting at 11 p.m. on New Year’s Eve, our drivers provided
160 free rides, ferrying 350 people home safely.
FOR NEARLY A DECADE
HEINEKEN
USA AND
COMMUNITY
PARTNERS HAVE
PROVIDED
THOUSANDS
OF CONSUMERS
FREE RIDES ON
NEW YEAR’S EVE
12
COMPANIES
JOINED TOGETHER
AND LAUNCHED
GLOBAL
COMMITMENTS
TO REDUCE
HARMFUL USE
OF ALCOHOL
Impact
ACTIVITIES
12 HEINEKEN USA
Sustainability Report 2012
Other information Gabriele Giudici
Senior Vice President, Finance
Enabling
Our Journey
Brewing a Better Future will only succeed if
the preconditions for success are defined
and in place. With our enablers, we are
making sure that our culture and
organization can support our ambitions.
Extending Our Influence Through
Our Supplier Code
HEINEKEN is committed to making a
positive contribution to society through
all its global operations. We at
HEINEKEN USA expect our suppliers to
help us to fulfill this commitment by
actively supporting and respecting our
values in their own business practices.
In 2011 we asked them to sign a new
code agreeing to uphold our standards
of integrity, environmental sensitivity
and human rights. By the end of 2012,
100% of applicable HEINEKEN USA
suppliers were in full compliance with
our supplier code guidelines.
We monitor compliance with our code
through a collaborative platform called
EcoVadis. Suppliers identified as high
risk are subject to audit by a third party.
In 2012 our global team conducted
nine audits—all outside of the U.S.—
finding 37 minor, 41 major and zero
critical non-compliances. We adopt a
continuous improvement approach to
achieving compliance, but may as a
final resort cease to do business with
non-compliant suppliers.
Building Sustainability Into
Objective Setting
HEINEKEN wants sustainability to be
expected behavior rather than an
ad-hoc activity linked to a short-term
cash bonus. In 2012 100% of U.S.
senior managers agreed to a
sustainability objective as one of the
five merit areas evaluated on their
annual appraisal. An overwhelming
majority hit the target.
Better Reporting With Green
Gauge 2.0
Launched in 2011, the Green Gauge
scorecard allows us to monitor and
report quarterly progress on
sustainability initiatives at all levels of
the business. To improve efficiency and
reporting quality, we rolled out Green
Gauge 2.0 in 2012. This electronic
platform is quicker, more accurate and
tightly integrated with other existing
reporting tools within HEINEKEN.
Published Reports
As part of our commitment to
transparency in reporting, HEINEKEN
published a 2012 Global Sustainability
Report. In 2012, 32 operating
companies across the world joined the
U.S. in releasing sustainability reports
or fact sheets for the previous year.
“HEINEKEN is fully
committed to aligning
our vendors with our
sustainability agenda.”
100% OF U.S.
SENIOR MANAGERS
AGREED TO
SUSTAINABILITY
TARGETS
IN 2012
HEINEKEN USA
REACHED
100% COMPLIANCE
WITH THE SUPPLIER
CODE GOVERNANCE
HEINEKEN USA 13 Sustainability Report 2012
Stakeholder Engagement
and Dialogue
Our stakeholders are critical to our Brewing
a Better Future journey. They help us stay
focused and tell us when they feel we are
moving off track. We communicate and
engage with stakeholders in three ways:
reputation research, expert meetings and
ongoing dialogue.
HEINEKEN’s reputation research
survey gives a wide range of
stakeholders, including customers,
governments and NGOs, the
opportunity to tell us what they think.
Since 2010, more than 7,500 global
stakeholders have shared their
opinions, hundreds specifically about
our U.S. business.
In January 2012, our global teams
began the process of reviewing the
Brewing a Better Future agenda (see
page 16). To develop new
commitments for 2013 through 2015,
we facilitated a series of expert
meetings. A diverse group of 22
stakeholders met with internal
HEINEKEN specialists in Amsterdam to
exchange knowledge and insight on
our sustainability performance.
Feedback showed that, overall,
HEINEKEN is seen as a trusted and
respected company that delivers on its
promises. However, it also identified
areas for improvement.
Working With Partners
HEINEKEN believes that we can
achieve more by working with partners
and stakeholders than we can on our
own. In 2012, we continued to invest
time and energy in this philosophy.
Globally, HEINEKEN is a signatory to
the United Nations Global Compact
and an industry partner with the
World Economic Forum. We are
actively engaged in a growing number
of organizations that support our aims
for both business and society. Among
them are the Beverage Industry
Environmental Roundtable (BIER), a
partnership of global beverage
companies focusing on water
STAKE
HOLDERS
stewardship, energy
and climate
IN U.S.engagement;
RESEARCH
change, and stakeholder
and International Center for Alcohol
UNHEINEKEN
GLOBAL
Policies (ICAP), of which
is
currently the chair.
OVER
100 OF
COMPACT
WORLD
HEINEKEN USA, meanwhile, is a
member of the U.S. Environmental
Protection Agency ECONOMIC
SmartWay program
and the U.S. Customs and Border
Patrol Customs Trade Partnership
Against Terrorism program. We also
work with a number of NGOs, such as
the Congressional Hispanic
Leadership
SMARTWAY
Institute and the Congressional Black
U.S.
Caucus Foundation.
TheCUSTOMS
CBCF
continues to be a great partner,
PATROL CT-PAT
providing HEINEKEN-sponsored
music
scholarships annually.
FORUM
U.S. EPA
& BORDER
BEVERAGE
INDUSTRY
ENVIRONMENTAL
ROUNDTABLE
INTERNATIONAL
CENTER FOR
ALCOHOL
POLICY
UN GLOBAL
COMPACT
WORLD
ECONOMIC
FORUM
U.S. EPA
SMARTWAY
U.S.
CUSTOMS
& BORDER
PATROL
CT-PAT
14 HEINEKEN USA
Sustainability Report 2012
Other information Benchmarks
and Achievements
In our quest to create real value for all our
stakeholders, we are committed to improving
the quality and quantity of data on which
we report. This requires benchmarking our
performance against other companies in the
sector and publishing and sharing our findings.
Global Benchmarks
• Dow Jones Sustainability Index
Although we were not included in the
index, we received our highest score
ever. Specifically, we achieved a
significant improvement in our
overall performance in packaging
and standards for suppliers. We also
remained best in class in the areas of
water-related risk and responsibility
for alcoholic products.
• FTSE4Good
We again maintained our inclusion in
the index, achieving an absolute
score of 4.1 out of 5, and a relative
‘food and beverage’ supersector
score of 94 out of 100.
• Investors Carbon Disclosure Project
We again participated in the
Investors CDP, to measure and
disclose our carbon-reduction
activities. Our disclosure score
improved by almost 30 points,
from 59 to 88 points out of 100.
In addition, we achieved a
B performance rating versus
D previously. Overall, this resulted
in a CDP Benelux Leadership Index.
• CDP Water Disclosure
For the second time, we took
part in the CDP Water Disclosure
Global Survey, reporting on water
usage, the risks that water presents
and responses to that risk. Our
introduction of incentives for all
senior managers linked to
sustainability targets, including
water, was highlighted as a “Leading
Practice on Governance” in the
Consumer Staples category.
In May, HEINEKEN received the prestigious
GBCHealth Business Leadership Award for its
“enduring commitment to and excellence in its
support for health-related programming”.
HEINEKEN USA 15 Sustainability Report 2012
Local Benchmarks and Achievements
• HEINEKEN USA’s renovated
headquarters were awarded U.S.
LEED (Leadership in Energy and
Environmental Design) Gold
certification by the U.S. Green
Building Council.
• HEINEKEN USA achieved SmartWay
Transport status with the U.S. EPA
and commits to the continual effort
to reduce carbon emissions from
the ground transportation of its
supply chain.
• HEINEKEN USA’s Women’s
Leadership Forum event at our
national meeting was attended by
more than 20% of employees.
• HEINEKEN USA’s Supplier Code, which
commits our suppliers to following
sustainable business practices, was
signed by 100% of applicable
suppliers.
• 100% of HEINEKEN USA senior
leaders agreed to meet sustainability
targets as part of their objective
setting, including the full
management team.
• HEINEKEN USA employees, aided by
a generous five-to-one match
program, donated $100,000 to help
people affected by Hurricane Sandy.
• Through HEINEKEN with a Heart,
donors gave a record $130,000 to
more than a dozen local charities
across the U.S.
• HEINEKEN USA effectively worked
with government agencies and its
distributor partners, and with
consumers via social media, to
successfully manage a voluntary
national brown bottle recall.
• In the U.K., our Tadcaster brewery
reduced its water usage from 4.98 to
4.86 hectoliters per hectoliter of beer
through changes to water handling.
16 HEINEKEN USA
Sustainability Report 2012
Other information The
Years Ahead
Based on dialogue with our stakeholders and
insight into global trends, we have identified four
key areas on which we will build a more focused
second phase of our global Brewing a Better
Future agenda: water, CO2, sourcing and
responsible consumption. Each area is
underpinned by our ways of working–living by our
values, leading by example and working together
to make a difference.
Agriculture
GLOBAL
Focus areas
Water
CO2
Sourcing
Responsible consumption
Ways of working
Values and Behaviours
Malting
Brewing
Packaging
Distribution
U.S
S.
Global Trends: How They Impact
Us, How We Impact Them
The world is facing unprecedented
global challenges, chief among them
population growth, climate change,
access to natural resources and food
and water scarcity. These challenges
will directly and indirectly affect
businesses, both by threatening the
availability of key resources and
prompting increasingly demanding
legislation.
Defining Our Priorities
In 2012, we reviewed global trends
as basis for defining our priorities.
To help us in our assessment, we
hosted a series of ‘expert meetings’
between February and April 2012.
A diverse group of 22 stakeholders
met with internal HEINEKEN
specialists to share knowledge
and insight on our sustainability
performance and discuss how we can
develop our thinking and plans.
HEINEKEN, too, will be affected if we
do not act to mitigate the impact of
these risks on our own organization.
At the same time, we recognize the
economic and social opportunities
that lie in creating real, shared value
for all our stakeholders.
Materiality Analysis
These dialogue sessions were
instrumental in helping us to build a
prioritized materiality matrix
containing the issues, risks and
opportunities that are most relevant
to our business and stakeholders.
Customer
Consumer
Each of these four areas is supported
by a number of concrete
commitments. Each has milestones to
be achieved by 2015. The 2020
ambitions that were set in 2010
remain unchanged, and they are
integrated into our current agenda.
Looking to the Future
With our new commitments in place,
we are looking proactively to secure
the long-term continuity of our
business, while fulfilling our social and
environmental obligations.
Our Global Commitments for 2020
Let Us Know
Water
• Reduce specific water consumption
in the breweries by 25%
• Aim for water compensation/
balancing by production units in
water scarce and distressed areas
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.
CO2
• Reduce CO2 emissions:
–– In production by 40%
–– Of our refrigerators by 50%
–– Of distribution by 20% in Europe
and the Americas
Sourcing
• Deliver 60% of raw materials in
Africa via local sourcing
• Aim for at least 50% of our main raw
materials from sustainable sources
• Ongoing compliance with our
supplier code procedure
Responsible Consumption
• Deliver on industry commitments
• Make responsible consumption
aspirational through Heineken®
• Every market in scope has and
reports publicly on a measurable
partnership aimed at addressing
alcohol abuse.
Stacey Tank
Senior Vice President
Corporate Relations
Lianne Visser
Responsibility and
Sustainability Manager
Corporate Relations
Email:
[email protected]
Post:
360 Hamilton Ave,
White Plains, NY 10601
For full details of our 2020
ambitions and 2015 milestones,
read our global online report.
A HEINEKEN USA
publication
HEINEKEN USA
360 Hamilton Ave
Suite 1103
White Plains, NY
10601
Telephone:
(914) 681-4100
Production
HEINEKEN USA
Corporate Relations
Stacey Tank
Senior Vice President
Corporate Relations
Please read HEINEKEN’s global
Sustainability Report 2012 at:
www.sustainabilityreport.HEINEKEN.com
HEINEKENUSA.com
EnjoyHeinekenResponsibly.com
Heineken.com
Jacqueline Leahy
Employee
Communication
Manager
Corporate Relations
Content Support
FitchInk,LLC
Graphic Support
Corso
Communications, LLC