25 Risk Management (continued) Operational risks Safety, health and environment Recent developments Product safety and integrity Recent developments Supply chain continuity Recent developments Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information What could happen HEINEKEN is committed to providing a safe workplace for all employees and contractors. Despite the controls in place, incidents and accidents may happen in the brewery, our supply chain and in HEINEKEN's route-to- market, leading to physical injuries or fatalities to employees, contractors or members of the public. What are we doing to manage this risk HEINEKEN has established 'Safety First' as a key employee behaviour and Health and Safety as a pillar of its Brewing a Better World programme. The global safety programme in place aims at enhancing global standards, organisation and processes, and strengthening safety leadership and safety behaviours. Continuous improvement is achieved through global compliance monitoring, systematic gap-closing and central reporting of accidents, incidents and near-misses. Given its growing presence in emerging markets, safety is an ongoing challenge and a permanent focus area. Effective 1 January 2016, the HEINEKEN Life Saving Rules target the activities that carry the greatest safety threats to employees and contractors. Despite these efforts, several significant fatal accidents have occurred, underlining the importance of realising further improvements in the area of safety. What could happen Poor quality or contamination of any of the HEINEKEN products, be it accidental or malicious, could result in health hazards, reputational damage, financial liabilities, product recalls and volume decrease. What are we doing to manage this risk HEINEKEN has established a comprehensive company-wide Quality Assurance programme covering among others production standards, recipe governance, suppliers' risk, production material risk and country risk. Should this risk materialise, Group-wide recall and crisis procedures are in place to mitigate the impact as much as possible. Innovations and increased local sourcing results have led HEINEKEN to further strengthen the controls on recipe governance and production processes in order to maintain its food safety and quality standards. Changes to the environment in recent years, such as high speed of information, growing impact of social media and tougher legal environment in certain jurisdictions can magnify the impact of any quality issues or allegation thereof. What could happen Disruptions in the supply chain could lead to HEINEKEN's inability to deliver key products to key customers, revenue loss and brand damage. Changes in the availability or price of raw materials, commodities, energy and water may result in a shortage of those resources or increased costs. What are we doing to manage this risk Business continuity plans have been developed for HEINEKEN's key brands in all key markets, and back-up plans are in place in all operating companies. Business resilience is further strengthened through ownership of several strategic malteries, long-term procurement contracts, water management plans and central management of global insurance policies. Political instability, terrorism, climate change and in particular water scarcity and its effects on crop yield and grain prices, require both the market and governments to take measures, which will in the short term result in additional costs to the business.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 26