Sourcing
sustainably
140
Sustainability Review (continued)
Responsible sourcing of raw materials has never been
more important. We want to guarantee a long-term,
sustainable supply of raw materials and operate in
a way that improves quality of life for local people.
Working with our suppliers is key.
Source agricultural raw materials from sustainable sources
Source agricultural raw materials locally in Africa and Middle East
"HEINEKEN clearly
understands that linking
local farmers to markets
is key to sustainability and
economic development."
1 -*>
Heineken NV
Report of the
Report of the
Financial
Sustainability
Other
Annual Report 2016
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
- Aim for at least 50% of our main raw
materials9 to come from sustainable sources.
On track
Our 2018 milestone
- Aim for at least 25% of our main raw
materials to come from sustainable sources.
For more on our Sustainable Agriculture approach
and 2016 progress, see our website
- In 2016, 17% of our main raw materials
came from sustainable sources.10
- For the first time, we looked across all our
main raw materials, meaning sugar beet,
sugar cane, rice, sorghum, wheat and maize
were included in our reporting, alongside
barley, hops and apples.
Our 2020 commitment
Our progress in 2016
Our progress in 2016
More to do
- We sourced an estimated 49% of the
agricultural raw materials we used in
Africa and the Middle East locally in 2016,
showing we still have work to do to meet our
2020 commitment.
- The total percentage remained on the same
level as in 2015 due to the consolidation
of South Africa into our reporting for the
first time.
- Excluding this new market we increased
local sourcing to 53% on a like-for-like basis
with 2015.
- We're now sourcing in 13 operating
companies across 27 different value chains,
including five Public-Private Partnerships.
Our 2020 commitment
- Deliver 60% of agricultural raw materials in
Africa via local sourcing within the continent.
Our 2018 milestone
- 56%11 of agricultural raw materials used
in Africa to be locally sourced12 from within
the continent.
Niels Hanssens
Deputy Executive Director, European Cooperative
for Rural Development (EUCORD)
For more on our Local Sourcing programme
and progress in 2016, see our website
Looking ahead
To achieve 60% local sourcing in Africa in
2020, we need to continue to encourage and
support partners to invest in new processing
capacity in several markets.
Our local sourcing projects provide work to
an estimated 150,000 farmer households.
With an average of seven family members* per
household, our potential impact is much higher.
Source: World Bank.
9 In scope are barley, hops, apples, sugar beet, sugar cane, rice, sorghum, wheat and maize.
10 Including Joint Ventures that fall under our global purchase organisations. At the time of
publication, this indicator was not assured; however, final externally assured data will be
published on the HEINEKEN website by the end of March 2017.
11 Based upon volume (in tons).
12 With local sourcing we refer to sourcing within the region of Africa and Middle East.