Contribution and compliance:
the new Supplier Code
In 2010, Heineken made
several substantial changes
to its Supplier Code.
The new code now reflects
the ambitions and values
of Green Brewer and Green
Commerce in Brewing
a Better Future and makes
a demand of suppliers
to contribute.
The previous code already outlined clear expectations in the areas
of integrity, business conduct, and human rights. The new code
updates that part by requiring compliance with the International
Labour Organisation standards. In addition, the new code includes
sections on the environment, communication and compliance.
For example, suppliers are now asked to minimise their own
impact on the environment and to develop environmentally
friendly technologies. Crucially, they also need to ensure
that their own suppliers live by key elements of the code.
This significantly increases the influence of Brewing a Better
Future on communities worldwide.
"The code shows suppliers that we continue to enforce integrity.
It clearly states our principles and the commitments that we made
to ourselves," says Edwin Zuidema, Global Category Director
Raw Materials.
Some 450 of Heineken's key strategic suppliers, who account
for the majority of the Company's purchase spend, confirmed
compliance with the new code in 2010. Heineken expects
to complete the roll out of the new Supplier Code among its total
supplier base in 2011.
Heineken has also listened to feedback from NGOs who said
that the Company was not doing enough to enforce compliance.
"Suppliers who are not compliant are expected to work with
Heineken to make improvements. If that does not yield sufficient
results, Heineken can terminate the contract with the supplier."
Heineken is working on a compliance monitoring procedure and
a risk matrix that will help to identify suppliers, materials and
countries at risk of non-compliance. Heineken is also selecting a
self-assessment tool for low and medium risk suppliers, materials
and countries. "Those suppliers can assess their own compliance,
although we have the option of performing audits," says Edwin.
n N.V Sustainability Report 2010
