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.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 141