42,000
SUPPLIERS
Our priorities
Actions and results
Democratic Republic of Congo
The rice project in the DRC serves
as an excellent example of what
a committed approach to local
sourcing can achieve. Research
shows that in some parts the
average income per farmer
increased by more than 300%.
Heineken N.V. 13
Summary Sustainability Report 2013
50% of our main raw materials to be supplied from
sustainable sources, based on the principles and practices
of the Sustainable Agriculture Initiative Platform
50% of agricultural raw materials in Africa to be locally
sourced within the continent, creating shared value for
both smallholder farmers and HEINEKEN
Ongoing compliance with our Supplier Code procedure.
Sustainable sourcing of agricultural materials
In 2013, we created procedures for how we procure
sustainable agricultural materials, starting with barley,
hops and apples. These procedures have been introduced
to our key suppliers, who in turn are encouraged to work
with farmers who grow their crops sustainably. We
are developing a Company-wide system that can
reliably measure and report progress on our sustainable
sourcing targets.
As a founding partner of the Cool Farm Institute, together
with leading academics and major food and drink industry
players, we were actively involved in the development of
the Cool Farm Tool. This online greenhouse gas calculator
helps growers to assess and improve the environmental
and economic performance of their businesses. The online
version of the Cool Farm Tool was launched in January 2014
Local sourcing
In 2013, we sourced approximately 46% of our African raw
materials locally, up from 45%' in 2012. We currently source
agricultural raw materials locally in 11 Operating Companies.
We have projects running in eight countries across Africa,
involving more than 100,000 farmer families. We also
launched the Community Revenue Enhancement through
the Agricultural Technology Extension (CREATE) programme
to help accelerate our sourcing initiatives in the region.
Supplier Code signed by
Supplier Code governance
At the end of 2013, more than 42,000 of our suppliers had
signed the Supplier Code, an increase of 8,000 over the
previous year. As part of our Supplier Governance Procedure,
we monitor compliance with the Code through the EcoVadis
collaborative platform and initiate audits when necessary.
We adopt a continuous improvement approach to achieving
compliance, but may as a final resort cease to do business
with non-compliant suppliers. In 2013,55 contracts were
terminated, triggered by the supplier's lack of commitment
to our Supplier Code programme.
For this and other case studies
relating to local sourcing,
sustainable agriculture and
Supplier Code governance,
see our online report.
1 Restated figures following an update of the local sourcing definition.
