Sustainability Report 2014 Heineken ireland · Welcome to our 2014 Sustainability Report HEINEKEN...

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Sustainability Report 2014 HEINEKEN Ireland Brewing a Better World

Transcript of Sustainability Report 2014 Heineken ireland · Welcome to our 2014 Sustainability Report HEINEKEN...

Sustainability Report 2014Heineken irelandBrewing a Better World

About this report This report summarises HEINEKEN Ireland’s progress on Brewing a Better World (BaBW)in 2014. We continue to focus on the topics that are most relevant for our stakeholders and our business. This year, in response to stakeholder feedback, we have created a more focused and simplified report, while still maintaining the same level of transparency. To achieve this, we have made a clear separation between information regarding our actions and progress, and more in-depth contextual information. This document summarises our main progress and activities in 2014.

More detailed information on our global activities can now be found in the sustainability section of our company website, including: • The G4 reference table • Governance and measurement of Brewing a Better World • How we support the UN Global Compact principles • More than 30 case studies and videos• More than 40 sustainability reports and fact sheets from different markets.

For more information, see: www.theheinekencompany.com/sustainability

Introduction The big picture Our focus areas Values and behaviours Other information

2 Heineken ireland Sustainability Report 2014

Heineken is the world’s most international brewer with its brands available in 178 countries around the world. Sustainability is one of our core business priorities, and Brewing a Better World is our strategic focus.

Our Sustainability Report 2014

Contents

introduction03 Foreword

The big picture04 Brewing a Better World06 What we said and what we’ve done 08 Our Value Chain

Our focus areas10 Protecting Water Resources13 Reducing CO2 Emissions16 Sourcing Sustainably18 Advocating Responsible Consumption22 Promoting Health & Safety24 Growing with Communities

Values and behaviours26 Achievements

Other information27 Contact Details

Welcome to our 2014 Sustainability ReportHEINEKEN Ireland is very proud to be the leading supplier of premium, high quality beer and cider brands. We are committed to creating a successful and sustainable business that makes a significant contribution to the community and economy in which we operate.

Brewing a Better WorldIn line with this commitment, we set ourselves challenging targets for 2020. We also made important changes to Brewing a Better World (BaBW), our strategic focus on sustainability, by making two existing focus areas more explicit:

• Growing with communities• Promoting health and safety

These were added to our four existing commitment areas:

• Protecting water resources• Reducing CO2 emissions• Sourcing sustainably• Advocating responsible consumption

Our 2014 performance HEINEKEN Ireland is at the heart of the Irish economy, creating jobs and building skills for the future. For us, local sourcing and supporting local communities is a priority, with 100% of our malted barley coming from local farmers, which in turn supports in excess of 750 farming families and injects over €5 million into the local economy.

In 2014, we continued to focus on improving energy and water efficiency in the brewing process. Our water consumption of 3.1 hectolitres per hectolitre of beer is one of the most efficient usage rates within the HEINEKEN global network. In cooling, we have improved the average energy saving of our fridges to almost 45% compared with the 2010 baseline year.

Since 2010, we have reduced our CO2/ hl emissions by 10%. We accomplished this by improving our energy efficiency through using more renewables and low CO2 intensive fuels. In 2014, our CO2 emissions increased in production mainly due to increased production runs.

In 2015, we will focus our efforts on fuel and transport efficiencies. We will establish strategic alliances with suppliers and develop specific initiatives to reduce CO2 emissions.

HEINEKEN Ireland is a strong advocate of responsible and moderate consumption of alcohol. In 2014, we committed over 10% of our total Heineken® media spend on responsible messaging. In September, over 400 employees participated in our Enjoy Responsibly Day with a range of initiatives to highlight the important issue of alcohol misuse.

Safety comes first in all aspects of what we do. We are committed to continually investing in safety awareness and internal training.

Looking forwardSustainability is both a strategic and a business imperative for HEINEKEN Ireland. It is a responsibility we take very seriously and one to which we remain fully committed for 2015 and beyond.

Maggie Timoney Managing Director HEINEKEN Ireland

Introduction The big picture Our focus areas Values and behaviours Other information

Heineken iReland Sustainability Report 2014 3

Foreword

Brewing a Better World continues to besupported by our other business values andbehaviours. These include a commitment tofairness, integrity and respect for the law.

Introduction The big picture Our focus areas Values and behaviours Other information

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Brewing a Better World is our long-term approachfor creating shared, sustainable value forour business and our stakeholders.

Brewing a Better World

Over the last few years we have taken some important steps to make sustainability a business imperative rather than something that lies outside our normal business operations. Today, it is one of our six key business priorities.

The idea of sustainability as a business imperative means that we act now to mitigate the impact of environmental and social risks and that we look at ways to create genuine economic opportunities for both our business and our stakeholders.

Currently, Brewing a Better World focuses on four key areas where we and our stakeholders believe we can make the biggest difference:

• Protecting water resources• Reducing CO2 emissions• Sourcing sustainably• Advocating responsible consumption

Each focus area is underpinned by clear commitments, which we made in 2012. These state our ambitions for 2020, with three-year milestones to be achieved by 2015.

But sustainability is not a rigid plan nor is it an exact science. Therefore, we routinely review both the scope and the level of commitments. As a result, in 2014, we have added two new focus areas: Promoting Health and Safety and Growing with Communities.

Health and Safety has always been an integral part of our approach. It is our view that adding it as a pillar and combining it (as we have) with a company behaviour of ‘Safety First’ will create greater visibility across the whole of the company and drive down further the number of accidents and incidents in our business.

Growing with communities underlines our ambition to have a positive impact in the communities in which we live, work and sell our products.

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Brewing a Better World

Introduction The big picture Our focus areas Values and behaviours Other information

• Passion for quality• Brands that people love• Enjoyment of life• Respect for people and planet

Growing withcommunities

Promoting healthand safety

Sourcingsustainably

Advocating responsible consumption

Reducing CO2emissions

Protecting waterresources

Our values

Our focus

Our strategy

Brewing a Better World continues to be supported by our other business values and behaviours. These include a commitment to fairness, integrity and respect for the law, contained in the HEINEKEN code of business conduct.

As Brewing a Better World is one of the company’s strategic pillars, performance expectations are fully integrated within the company’s strategy measures at a global, regional and at a local level here in HEINEKEN Ireland.

Introduction The big picture Our focus areas Values and behaviours Other information

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in order to meet our 2020 commitments, we monitorour progress on an ongoing basis. This overviewshows our 2020 commitments, our 2015 milestonesand the progress we made in 2014.

What we said and what we’ve done

Focus area Heineken irelandcommitment for 2015 What we’ve done in ireland in 2014 Global commitment 2020 local progress

indicator

Reduce specific water consumption in our breweries to 3.9 hl/hl1

Achieved We achieved our 2015 target early and continued to maintain a minimal water consumption level of 3.1 hl/hl

We have raised our ambitionfor 2020 to 3.5 hl/hl1 overall,and 3.3 hl/hl on average forbreweries in water-scarceand water-distressed areas

Reduce CO2 emissions in production by 27% (to 7.6 kg CO2-eq/hl )

AchievedWe passed our 2015 target and achieved a 10% reduction compared with 2010, resulting in 6.0 kg CO2-eq/hl in 2014

Reduce CO2 emissionsin production by 40%3

Reduce the CO2 emissions from distribution by 10%2

More to doOur overall emissions from distribution increased by 5.9%compared with 2013. This was caused by significant changes in our distribution activities

Reduce the CO2 emissionsfrom distribution by 20%4 in Europe and the Americas

Reduce the CO2 emissions of our fridges by 42%

AchievedWe passed our 2015 target a year early. 99.8% of all fridges that HEINEKEN purchased in 2014 were ‘green’.

The average reduction of CO2 emissions improved from 40% to 45% in 2014, compared with the baseline year 2010

Reduce the CO2 emissionsof our fridges by 50%5

1. Baseline 2008 2. Baseline 2008 3. Baseline 2008 4. Baseline 2010/2011, scope is WE, CEE and Americas, 24 of our largest operations: Belgium, Bulgaria, France, Ireland, Italy, Netherlands, Portugal, Spain, Switzerland, UK, Austria, Belarus, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Brazil, Mexico, USA. 5. Baseline 2010

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Introduction The big picture Our focus areas Values and behaviours Other information

Focus area Heineken irelandcommitment for 2015 What we’ve done in ireland in 2014 Global commitment 2020 local progress

indicator

Aim for sustainable sourcing of raw materials for crop year 2015

On track In 2014 we sourced sustainably: 100% of our Malting Barley locally

Aim for at least 50% of ourmain raw materials fromsustainable sources

Four-step Supplier Code Procedure operational within all Operating Companies

On track Four-step Supplier Code Procedure now fully operational with all suppliers signed up to code

Ongoing compliance withour Supplier Code Procedure

We commit to invest a minimum of 10% of our media spend for Heineken® in supporting our dedicated responsible consumption campaigns

Achieved Investment exceeded 10% resulting in innovative responsibility campaigns being launched and executed in 2014

Make responsible consumption aspirational through Heineken®

Every market in scope has a partnership to address alcohol-related harm. All partnerships meet HEINEKEN’s seven-point partnership criteria

Achieved HEINEKEN Ireland in scope with its Alcohol Aftercare Programme in the Cork Simon Community

Every market in scope

has and reports publiclyon a measurable partnershipaimed at addressingalcohol abuse

What we said and what we’ve done

Achieved On track More to do Not on track

Introduction The big picture Our focus areas Values and behaviours Other information

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Our Value Chain

From barley to bar

Values and behaviours

Responsible consumption

Promoting health and safety

Growing with communities

Sourcing

CO2

Water

Focus areas

Ways of working

ConsumerCustomerDistributionPackagingBrewingMaltingAgriculture

From barley to bar

Values and behaviours

Responsible consumption

Promoting health and safety

Growing with communities

Sourcing

CO2

Water

Focus areas

Ways of working

ConsumerCustomerDistributionPackagingBrewingMaltingAgricultureFrom barley to bar

Values and behaviours

Responsible consumption

Promoting health and safety

Growing with communities

Sourcing

CO2

Water

Focus areas

Ways of working

ConsumerCustomerDistributionPackagingBrewingMaltingAgriculture

Our approach to sustainability covers the entirevalue chain ‘from barley to bar’. We continuouslyconsider the sustainability of each step,with respect to our key focus areas.

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Our Value Chain

Introduction The big picture Our focus areas Values and behaviours Other information

Below are some of the core activities across our value chain in 2014.

Malting At HEINEKEN Ireland our main raw materials are barley and hops. Local sourcing is a major priority for us, with 100% of our malted barley coming from local farmers, supporting in excess of 750 farm families and injecting over €5 million into the local agricultural economy.

Brewing The brewing process consumes energy and water. We continue to focus on increasing our water efficiency in the brewing process. Our water consumption of 3.1hl. water per hl of beer is one of the most efficient usage rates within the HEINEKEN global network.

Packaging HEINEKEN Ireland is focused on increasing the recycled content in our packaging, weight optimization and energy consumption in the packaging process. 98% of our total pub sales volumes in HEINEKEN Ireland is in a returnable format. We are also a member of REPAK, an NGO recycling association whose aim is to facilitate and promote packaging recycling.

DistributionOn an ongoing basis, we endeavour to measure and monitor our national land based transportation models and fuel efficiencies within our Green Distribution programme. We have ambitious targets for CO2/km per hl of beer delivered. Sustainability requirements are an integral part in all tenders for transport and transportation contracts as part of our sustainable policy.

Customers Most of our beers are enjoyed cold and thus cooled at the point of consumption via fridges (beer in bottles, cans or smaller kegs) or draught equipment (for beer in kegs). The on-going introduction of ‘green fridges’ together with the development of greener draught equipment such as the David (XL) Green in recent years, has led to a more efficient energy consumption and an almost 45% reduction of CO2 emissions in this area.

ConsumersAs one of Ireland’s leading beer and cider companies we actively take the lead in encouraging consumers of legal drinking age to enjoy our products responsibly. We are committed to the creation of advertising that makes responsible consumption aspirational for consumers. We have also been innovating with low alcohol brands and launched a low ABV 2% Amstel Radler in 2014, offering consumers greater choice.

Introduction The big picture Our focus areas Values and behaviours Other information

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Protecting water resources

Our global priorities:

•Reduce specific water consumption in our breweries to 3.5 hl/hl

•Protect our water resources in water-scarce and water-distressed areas

•aim for significant water balancing in these areas.

actions and results

Reducing water consumptionWe achieved our 2015 target early and decreased water consumption by 6% compared with 2008 (the baseline year), which equates to a yearly saving of 165,000 hl of water.

Our current usage is 20% below the average HEINEKEN group consumption levels.

Heineken ireland is one of the most water efficient breweriesin the global Heineken group.

2014 3.1

2013 3.1

2012 3.1

2011 3.3

2010 3.3

2009 3.2

2008 3.3

Specific Water Consumption hl./ hl. Beer

3.1hl/hl

6%

165,000 hls

of water saved, enough to fill 7 Olympic sized swimming pools

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At HEINEKEN Ireland, the Brewery Operations team continually focuses on driving water savings throughout the operation. The result is that HEINEKEN Ireland remains one of the most water efficient breweries in HEINEKEN worldwide. It takes 3.1 hectolitres of water to produce 1 hectolitre of beer.

Our water is sourced from the local municipal water supply and is treated on site to ensure that only the highest quality water is used in the production of our beers. Water is also used in the cleaning of our kegs and installations.

Wastewater treatment Close attention is constantly given to the quality of waste water produced at the brewery. In HEINEKEN Ireland, all the waste water produced at our facility is treated by the municipal waste water treatment plant, ensuring that it is fully and properly treated before being returned to the environment.

actions and commitmentsWe remain committed to using even less water and we continue to explore ways to make further reductions in this regard. We strive to achieve this on an on-going basis through a combination of initatives and programs which include:

• Process improvements identified and implemented by employees

• Innovative engineering developments and solutions

• On-going training sessions for our employees that identify key environmental issues and ensure a focused usage of resources in managing water consumption

• The introduction of water sub- metering across the brewery site allows for the close study of water usage at every step of the brewing process since 2013. This continually provides us with a comprehensive understanding of our water consumption patterns, resulting in focused attention on problem areas with significant water savings

Case Study | Water Metering

Water metering was installed across the brewery site which allowed for the close study of water usage at every step of the brewing process throughout 2014.

This provided the team with a comprehensive understanding of where and when water was used. Every opportunity for saving was identified, evaluated and improvements made which resulted in water usage savings. In this way we contribute positively tothe protection of water resources.

Introduction The big picture Our focus areas Values and behaviours Other information

Introduction The big picture Our focus areas Values and behaviours Other information

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as part of a leading global company, Heineken ireland believes it is our responsibility to play an active role inthe reduction of CO2 emissions acrossthe value chain, from barley to bar.

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Reducing CO2 emissions

Our global priorities:

•Reduce CO2 emissions in production by 40%

•Reduce the CO2 emissions of distribution by 20%

•Reduce the CO2 emissions of our fridges by 50%.

Carbon Footprint | Barley to Bar

HEINEKEN Ireland believes it is our responsibility to play an active role in the reduction of Co2 emissions across the value chain from barley to bar.

An extensive and comprehensive carbon footprint model that calculates the greenhouse gas emissions of beverage production, to better understand the hotspots in our value chain and identify areas for improvement, has been developed by HEINEKEN N.V. In 2011 HEINEKEN Ireland completed the process to establish our carbon footprint. This allowed analysis and greater understanding of hotspots which in turn facilitates a better focus on areas where improvements can have the greatest effect.

Carbon Footprint Heineken ireland 2011

Agriculture

Malting and adjuncts

Beverage production

Packaging production

Distribution

Cooling

LOWERSPECIFIC

CO2EMISSIONSSINCE 2010

10 %

Introduction The big picture Our focus areas Values and behaviours Other information

Introduction The big picture Our focus areas Values and behaviours Other information

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Reducing CO2 emissionsin production

In 2014, our CO2 emissions in production were 6.0 kg CO2-eq/ hl.This represented an increase on 2013, as a result of higher thermal and electrical energy consumption levels used in increased numbers of production runs in 2014.

Overall HEINEKEN Ireland has reduced its emission levels by 10% since 2010. This was as a result of focusing on improving our energy efficiency for both thermal and electrical energy, by using more renewables and replacing high CO2 intensive fuels such as fuel oil with low CO2 intensive fuels.

Reducing energy consumption in production

In 2014, we used, on average, 79 MJ of energy to produce one hectolitre of beer.

Specific thermal energy consumption increased by 15% in 2014, primarily as a result of the high levels of energy utilised in cleaning and descaling equipment arising from increased numbers of production runs in 2014.

Reducing CO2 emissionsin distribution

In distribution, our overall emissions increased by 5.9%. This was caused by significant changes in our distribution activities.

These changes were as a result of the increased collection of empty kegs combined with the appointment of a new third party logistics provider. The latter necessitated the transfer of product from the location of the old provider to the new, thereby impacting adversely on the distribution carbon emission levels.

We continue to focus our efforts on key areas such as fuel and transport efficiencies, establishing strategic alliances, engaging with suppliers and developing initiatives such as route optimisation, in our efforts to help achieve our 2020 commitment.

actions and results in our commitment areas

2014 6.0

2013 5.5

2012 5.6

2011 6.3

2010 6.7

2009 6.62014 79.1

2013 69.0

2012 69.4

2011 82.6

2010 81.9

Reducing CO2 emissions

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Reducing CO2 emissions

environmental compliance

In 2014, HEINEKEN Ireland received 8 environmental complaints. The brewery had no financial penalties with regard to these complaints.

All the environmental complaints were of a noise related nature.

Reducing CO2 emissionsfrom cooling

Cooling is essential to our consumers’ enjoyment of our beverages, but it is also a significant contributor to our total carbon footprint. To reduce this, in 2014, we continued to install ‘green’ fridges, both where we replaced an old fridge and where we installed a fridge in existing and new locations.

All HEINEKEN Ireland ‘green fridges’ have three characteristics: use a hydrocarbon refrigerant; are LED illuminated, and have an energy management system. This results in an almost 45% increase in energy efficiency.

actions and results in our commitment areas

-45%

99.8%

Waste recycling

Everyone at HEINEKEN Ireland acknowledges their responsibility with respect to post-consumer packaging waste. All employees are encouraged to segregate, recycle and compost their waste. Facilities are provided in each workspace for this purpose. We are members of REPAK, a voluntary packaging and recycling initiative

In HEINEKEN Ireland, the recycling rate of by-products, packaging and industrial waste in 2014 was 99.8%. We sell most of our by-products primarily for use as animal feed or compost.

Introduction The big picture Our focus areas Values and behaviours Other information

Introduction The big picture Our focus areas Values and behaviours Other information

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Sourcing Sustainably

Our global priorities:

•100% of our main raw materials to be supplied from sustainable sources

•Ongoing compliance with our Supplier Code Procedure.

actions and results

local SourcingIn 2014 we sourced all our malting barley through local farmers and malsters. Spending in excess of €5m and supporting in excess of 750 farm households in the process.

Additionally, our 2014 levels of spend in the local economy exceeded €100m, supporting over 1,000 local suppliers and service providers in the process.

In 2014, 100% of our suppliers have signed and were compliant with the principles expressed in our supplier code.

at Heineken ireland, a strategic focus remains to support local farmers and suppliers, which in turn generates employment and hasa positive economic impact.

Heineken ireland spent

€100m in the local economy in 2014supporting over

1,000local suppliers & service providers

Heineken iReland Sustainability Report 2014 17

Introduction The big picture Our focus areas Values and behaviours Other information

local sourcing

HEINEKEN Ireland has a strategic focus to support local farmers and suppliers, which in turn generates employment and has a positive economic impact.

We want to operate in a way that improves the quality of life for local businesses, helps the environment and ensures a consistent supply of our raw materials.

The long term success of our company lies hand in hand with the success of our partners. Sourcing locally with sustainable solutions benefits all.

Our local sourcing incentives play a key role in economically and socially empowering communities.

Compliance with our Supplier Code

HEINEKEN Ireland is committed to making a positive contribution to society and we expect all of our suppliers to fulfil this commitment by actively supporting and respecting the values in their own business practice. We continue to work together with them to ensure we implement the right practices throughout our value chain, as we ask them to respect and abide by the principles expressed in our supplier code.

By signing our Supplier Code, suppliers agree to comply with key elements of integrity, environment and human rights. At the end of 2014, all of our suppliers had signed the code. We used the services of Eco Vadis, a dedicated sustainability consultancy, in order to help our suppliers develop and adhere to these standards and to identify gaps in their performance that needed to be addressed.

Contract terminations

We believe continuous improvement can help suppliers comply with our Code. If there is no commitment to improve, or any corrective measures, HEINEKEN will cease to do business with that supplier.

In 2014, none of our suppliers were subject to supplier audit as all were assessed and approved by Eco Vadis, thereby ensuring all were committed to our Supplier Code.

100%of our suppliers have signed and were compliant with the principles expressed in our supplier code in 2014

Sourcing Sustainably

Introduction The big picture Our focus areas Values and behaviours Other information

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advocating Responsible Consumption

Our global priorities:

•Make responsible consumption aspirational through the Heineken® brand

•Build measurable partnerships in every market, aimed at addressing alcohol-related harm

•Take action at an industry level, in collaboration with 12 global alcohol businesses

actions and results

Making responsible consumption aspirational

In 2014, we continued to spread the message that ‘Sunrise belongs to moderate drinkers’, our first global Heineken® responsible consumption campaign, which aims to change habits by advocating positive behaviour.

At HEINEKEN Ireland, employees adhere to our Cool@Work policy, our workplace alcohol information and prevention programme.

In September, more than 400 of our employees participated in our first Enjoy Responsibly (ER) Day with a range of initiatives that deepened our understanding of what is, can and needs to be done to address the issue of harmful drinking.

We endeavoured to reach all the fans watching the UEFA Champions League around the World, through our dedicated (Enjoy Heineken® Responsibly) boarding.

In 2014 investment, which supported our dedicated responsible consumption campaign, exceeded 10% of our total Heineken® media spend.

Our Enjoy Heineken® Responsibly platform also included a dedicated website, which is advertised at all major sponsorships and has its own logo displayed on commercial communication and packaging.

• Alcoholmisuseisatop3 reputation issue for our

Heineken stakeholders

• Harmfulandexcessive consumption of alcohol is one of the biggest risks Heineken faces

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Introduction The big picture Our focus areas Values and behaviours Other information

Case Study | electric Picnic

in 2014, Heineken ireland incorporated a ‘drink Responsibly’ campaign to its festival line-up at electric Picnic.

Heineken® encouraged festival goers to drink water in between drinking beer and share their favorite Electric Picnic moments via Twitter.

Consumers, were then rewarded for drinking water, which was the unveiling of an immersive installation in which an 8ft waterfall displayed the days ‘best moments’ tweets of festival goers.

HEINEKEN Ireland delivered what was a truly innovative experience at Ireland’s largest music festival, with ‘drinking water between beers’ at the core of the message, challenging Irish consumers to evaluate their relationship with alcohol. We created an experience that gained talk- ability far beyond the 40,000 fans attending the three day festival.

The initiative was focused on making all employees better advocates of Responsible Consumption, working together positively to ensure a sustainable future for our business.

ER Day was a big success with all employees attending morning ‘Time to Talk ‘sessions at various centres around the country. These talks were delivered by various experts in different areas of alcohol treatment, who provided an insightful look into different aspects of our lives where alcohol can have a less positive effect.

Following the morning sessions, all employees then went into the community to support The Simon Community, a charity dedicated to eliminating homelessness, a situation often accompanied by severe alcohol misuse issues.

The ‘Time to Talk’ topics were supported by a month long e-learning education campaign called ‘Explore Today, Enjoy Tomorrow’, dedicated to educating our employees on all aspects of alcohol.

in our efforts to make responsible consumption aspirational, Heineken ireland participated in a global Heineken responsibility initiative, namely enjoy Responsibly (eR) day, in September 2014.

Case Study | eR day

Introduction The big picture Our focus areas Values and behaviours Other information

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advocating Responsible Consumption

Marketing our products responsibly HEINEKEN Ireland aims to ensure that all its commercial communication is responsible, consistent and conforms to the strict rules and regulations that exist internally and externally in the marketplace in which it operates.

At HEINEKEN Ireland, all consumer facing and marketing personnel receive training on an on-going basis on codes and regulations, to ensure that our responsible commercial communications do not contribute to excessive consumption or misuse.

HEINEKEN Ireland, also has specific rules on Digital Commercial Communication. These cover areas such as video use, online privacy and security, with a specific focus on age verification, particularly across social media. 100% of our Marketing Team participated in e-learning training modules in 2014 on these rules.

In addition, the pre-vetting service of CopyClear which provides an independent pre-publication vetting service for all alcohol related advertising, across all media ensures our advertising is 100% compliant at all times.

Testament to our efforts to communicate responsibly, was the fact that there were no complaints upheld on our marketing messages.

Building partnerships to address alcohol related harmAs an industry leader, we have a responsibility to recognise the problem of alcohol misuse. In encouraging consumers to make positive choices in relation to alcohol consumption, we work closely with industry groups, government, non-governmental organisations and third parties.

Our key focus areas are, marketing codes of practice, consumer information, drinking and driving, and retailer support.

Our membership of Drink aware demonstrates our commitment to changing and challenging the culture of excessive drinking in Ireland.

Our association with ABFI (Alcohol Beverage Federation of Ireland) ensures that HEINEKEN Ireland plays a lead part in the promotion of responsible consumption of alcohol in the marketplace together with ensuring a balanced stakeholder debate on issues affecting our industry.

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Introduction The big picture Our focus areas Values and behaviours Other information

Creating a taste for no alcohol & low alcohol brands

Modern day consumers are embracing moderation. HEINEKEN Ireland has been innovating rapidly with low alcohol brands, offering consumers greater choices around alcohol consumption. In mid-2014, HEINEKEN Ireland launched its low alcohol beer offering Amstel Radler, (2% alcohol by volume), an all-natural mixture of beer and lemon juice.

Our partnership with the Cork Simon Community, an organisation whose mission is to work with the homeless in our society, allows us the opportunity to help those who have been most affected by alcohol misuse.

For the last three years, the partnership with the Cork Simon Community has resulted in the establishment of a Pilot Alcohol Addiction Aftercare programme run by the Cork Simon Community and supported by HEINEKEN Ireland, which provides for a step down facility for those affected by alcohol to participate in a structured aftercare rehabilitation programme, thereby assisting greatly in their integration back into society.

The strategic, unique, high value and targeted intervention programme has been a great success. Furthermore, our work with the Cork Simon Community through our employee volunteer programme also puts into practice our resolve to be advocates of responsible consumption and enjoyment of our products, whilst at the same time attempting to help those most affected by alcohol misuse in society.

Case Study | Cork Simon Community

Introduction The big picture Our focus areas Values and behaviours Other information

22 Heineken ireland Sustainability Report 2014

Promoting health and safety

accidents & safety performance

The health and safety of our workforce is of the utmost importance to us and we are always looking for ways to improve our performance. As we strive for a zero accident environment, we continue to invest in training programmes designed to promote an increased awareness of behavioural safety. We continue to re-design some of our production processes on an on-going basis, as we continually improve and work towards being best in class.

The health and safety of our workforceis of the utmost importance to us at Heineken ireland

2014 1.5

2013 1.1

2012 4.5

2011 4.4

2010 4.7

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Total Production Management

Total Production Management (TPM) is HEINEKEN’s mandatory strategic improvement programmes for production units. A critical aspect of this is the safety pillars designed to work and create a safer working environment.

Significant investment has been put into the communication of safety norms in HEINEKEN Ireland which complement existing safety measures. Current programmes also include reporting on potential risks, resulting in fewer accidents.

In 2014, there were eight accidents in our production operations. Relative to 2010 levels, accident severity has significantly decreased owing to the corrective and preventative measures that we implemented. Heightened awareness around employee responsibility in the workplace has also contributed to this reduction.

improving Safety

Most work-related accidents and fatalities happen outside our production sites, when our people are travelling or distributing our products, as these are less controlled environments. This is the reason why we have a strategy that is systematically addressing safety across the whole of the company, with a particular focus on road safety.

Some of the initiatives in 2014:

• Safety leadership workshops for management teams, rolled out and to be completed by the end of 2015. • We launched three new safety e-learning modules (making a total of 15 modules). The use of e-learning modules is monitored and in 2014, we achieved nearly 100% compliance with our employees.

• Launched in 2013 and fully implemented in 2014, our Accident Reporting and Information Software programme (ARISO), monitors our efforts to ensure all accidents, incidents and near misses are reported and investigated, ensuring appropriate corrective and preventative actions are completed on a timely basis.

Area Indicator 2015 Target

Production Accident Frequency 10% reduction on 2014 levels

Company wide health & well-being programmes

Employee attendance & feedback 100% of employees attendanceand positive feedback

Sales Driver Awareness Intervention Programmes

Road Safety Trainingwith alert driving criteria

100% of all sales personnel trained

2015 Safety Targets

Introduction The big picture Our focus areas Values and behaviours Other information

How we contributed in 2014 Motives for contributions 2014

Community Investment

Charitable Gifts

Commercial Initiative’s

Cash

In Kind

Time

Introduction The big picture Our focus areas Values and behaviours Other information

24 Heineken ireland Sustainability Report 2014

Growing with Communities

in 2014, Heineken ireland contributed the equivalent of over

€600,000

including cash, time, in-kind donations and management costs.

From the farmers we work with to the people living around our breweries, we want to ensure that our success as a business helps the communities and societies in which we operate to prosper. Our support is based on three building blocks:

1. Direct contributions

2. Employee Volunteering Programs

3. The HEINEKEN Ireland Cares Foundation.

Heineken iReland Sustainability Report 2014 25

We want to ensure that our successas a business helps the communities and societies in which we operate.

direct contributions & volunteering programs

In 2014, HEINEKEN Ireland contributed the equivalent of more than €600,000 including cash, time, in-kind donations and management costs.

Our focus is on seeking long-term community investments through partnerships that are aligned with our business and sustainability agenda, actively supporting local communities in the field of alcohol misuse, education, employment, social welfare and the arts.

We encourage all employees to become actively involved in the communities in which we live and work. In 2014, more than 400 of our employees took part in volunteering activities, spending in total an estimated 2,500 hours, in support of the Cork Simon Community.

Heineken ireland Cares Fund

Since being established in 2012, the HEINEKEN Ireland Cares Fund has invested in community healthcare and welfare projects which are proposed and nominated by HEINEKEN Ireland employees.

in 2014, over 400 of our employees gave

2,500 hours in volunteering activities

The fund itself affords employees the opportunity to nominate and support a project or agency they are passionate about. All nominations are reviewed by the fund committee to ensure that such community investment support is aligned with the business and sustainability agenda.

Creating economic & social impact

As a business, the biggest contribution we make to communities is through the positive impact of our business itself i.e. creating jobs, providing business to suppliers and paying taxes.

The taxes and water charges that HEINEKEN Ireland pays are a significant part of our contribution to the local economy. Our Company generates significant monies in taxes for government, such as excise taxes, VAT and employee taxes.

Introduction The big picture Our focus areas Values and behaviours Other information

Growing with Communities

Introduction The big picture Our focus areas Values and behaviours Other information

26 Heineken ireland Sustainability Report 2014

achievements

At the start of 2014, HEINEKEN Ireland joined the top 20 Breweries in the global HEINEKEN network, receiving a most prestigious award for TPM (Total Production Management) excellence.

The journey to achieving this award began in earnest in 2005, when systems revolving around new ways of working were introduced into HEINEKEN under the umbrella of TPM.

TPM in many ways is a process that fosters a continuous improvement culture in the organisation with particular focus on areas such as People Development, Product Quality, Cost Efficiencies and embedding a robust Safety Culture within the brewery.

Following a series of stringent audits conducted internally in 2013 by HEINEKEN NV, HEINEKEN Ireland was conferred in 2014 with the highest award for excellence achieved by any brewery in the HEINEKEN Western Europe network for its efforts in the above areas.

TPM continues to be embedded into the Brewery culture as HEINEKEN Ireland endeavours to be the ultimate World Class brewery organisation.

Case Study | Bronze award | Heineken ireland

Heineken iReland Sustainability Report 2014 27

Introduction The big picture Our focus areas Values and behaviours Other information

Let us know your thoughtsWhich aspects of Brewing a Better World are working well?

Where do you think we could do better?

We would love to hear from you, because your feedback will allow us to learn and improve.

Kathryn D’ ArcyCorporate Relations Director

Email:[email protected]

Post:HEINEKEN IrelandMurphy BreweryLeitrim StreetCork IrelandTel: 021 450 33 71

For the Global Sustainability Report 2014, visit:www.theheinekencompany.com/sustainability

A HEINEKEN Ireland publication

HEINEKEN IrelandMurphy BreweryLeitrim StreetCorkIreland

telephone +353 21 4503371

fax + 353 21 4503011

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Twitter:@HEINEKEN Corp