Healthcare - establishing standards
Heineken Africa Foundation - direct funding
for healthcare
32
Brewing a Better Future Heineken Cares
Sustainable Agriculture
We are working with suppliers to gradually increase
the quantity of sustainable raw materials such
as barley, hops and cider apples. We follow
international agricultural standards, develop and
implement indicators for sustainable agriculture
to measure the compliance of suppliers against
our standards.
In 2010, we developed the methodology and
questionnaires that underpin MASSA (Malting
Assessment System for Sustainable Agriculture).
This monitoring system will help us acquire data
relating to the sustainability indicators for the apple
to cider, barley to beer and hops to beer chains.
We also became a member of the Sustainable
Agriculture Initiative (SAI). This platform of
international food producers identifies best
practices, organises conferences and conducts
research in the area of sustainable agriculture.
Heineken participates in several of SAI's working
groups dealing with barley, hops and apples.
In the UK, where we own more than half a million
apple trees, we have done two things to improve
our sustainability. First, having already piloted our
indicator and measurement work with local apple
growers, in 2010 we helped to establish a network
of local cider apple growers to develop more
sustainable practices on farms. During the last
year we began a number of three-year trials with
this network designed to reduce dependence
on agro-chemical inputs.
Second, we began a long-term research project
with the University of Reading, one of the country's
leading agricultural universities. Our first step is to
conduct an extensive literature review, to ensure
we do not repeat existing research and to see
whether research that was previously dismissed
may perhaps be valuable after all.
Local Sourcing - a win/win
Local sourcing can be beneficial to the environment,
local communities and Heineken itself. That is why
in 2010 we increased the amount of crops sourced
locally. In Mexico, for example, we set up a joint
venture that allows us to locally source 50,000
tons of corn-starch from the 136,000 tons
required annually. The corn was previously
imported from outside Mexico. In Brazil, new
agreements with local Brazilian malt suppliers are
under discussion in order to increase the amount
of malt sourced locally to 43 per cent of our annual
requirement. In Ireland, we agreed with local
suppliers that 100 per cent of the required 11,000
tons of barley will be locally sourced in 2011.
In April 2010, we organised a workshop in the
Netherlands to present our Brewing a Better
Future programme to local buyers. The workshop
generated buy-in and new ideas on how to
promote local sourcing.
In 2010, we took steps to further improve the
quality of healthcare we provide. We started the
inventory of the level of healthcare provided by
our Operating Companies by conducting a gap
analysis in six companies. We investigated the
health insurance conditions of a number of
companies and finalised a Heineken Healthcare
Standard that will apply to all Operating Companies
participating in Brewing a Better Future.
Economic Impact Assessment - better
understanding our contribution
Over the years we have conducted several
Economic Impact Assessments in various countries
like Sierra Leone, Rwanda and Burundi. In 2010,
we made Economic Impact Assessments for Egypt,
Croatia and the Bahamas. By looking at cash flows
and direct and indirect employment, these studies
showed the far-reaching impact that we have
on the economy and society of these countries.
In Croatia, 8,800 jobs are in some way related to
Heineken. In Egypt, we estimate that local sourcing
of barley has resulted in up to 6,000 jobs.
Furthermore, barley production for malt was
shown to use 30 per cent less land compared
to other barley grown in Egypt, thus increasing
farmers' incomes. The report for the UK was
started but not finished by year-end 2010.
In 2007, Heineken committed EUR10 million to
establish the Heineken Africa Foundation (HAF).
In 2009, the Company committed to doubling that
investment, resulting in an additional EUR10 million
transferred in 2010. This additional commitment
now allows HAF to donate EUR1 million a year
to community healthcare projects in sub-Saharan
Africa. In addition to the four projects already
mentioned in the chapter on the Millennium
Development Goals (page 47), HAF supported
many other initiatives in 2010:
