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Reporting basis and governance of non-financial indicators
As we continue our journey of integrated reporting, this is the second year we have disclosed our financial
and Brewing a Better World performance together in one report. We believe it is important to provide
independent confirmation that the information in this report is reliable and accurate, so we have asked
Deloitte to provide limited assurance on 31 of the most important non-financial indicators29. More
information about our actions and progress in 2017, remaining non-financial KPIs, and background
information, can be found online. This includes datasheets and the GRI Standards table30.
Brewing a Better World Governance
Operating companies in scope
Indicators in scope
Reporting systems
Report of the
Report of the
Financial
1 Sustainability 1
Other
Introduction
Executive Board
Supervisory Board
Statements
1 Review 1
Information
Heineken N.V. Annual Report 2017
Our governance model for Brewing a Better World ensures we deliver on our priorities both globally and locally. Brewing a Better World progress is one
of the key priority topics of the HEINEKEN Executive Team discussions, chaired by our CEO. In 2017, progress on our achievements was presented to
the Supervisory Board. Supported by expert input from subject specialists, this ensures an effective implementation of Brewing a Better World
initiatives across our business.
Focus on sustainability is embedded throughout our business, for example driven by Supply Chain (Water and CO2), Procurement (Sustainable
Sourcing), HR (Health and Safety) and Commerce (Responsible Consumption). On a day-to-day basis, Brewing a Better World is managed by the
Global Sustainable Development team which is supported by the functions.
Around the world, each operating company has its own sustainability coordinator and a team engaged in delivering Brewing a Better World. Further,
we form alliances (tribes) throughout the organisation and with our suppliers to develop new solutions. For example, following the Paris Agreement
COP21we will redouble our efforts to reduce emissions through our platform, which ensures it connects everyone in the company.
The non-financial indicators in this report cover the performance of all our consolidated operating companies from 1 January 2017 up to and including
31 December 2017, unless stated otherwise. A different reporting period is applied to the accident frequency indicator (December 2016 - November
2017) as the current reporting cycle does not allow for reporting within the timelines required for the Annual Report. Newly acquired production units
are required to start reporting directly after the first calendar year following the date of acquisition.
For the first time, we included our greenfield brewery in Ivory Coast in this report. Ownership of our businesses in Belarus and Mongolia changed in
2017, which means that the key performance indicators have been included up to the sale date. We also acquired or gained a majority interest in the
following businesses during 2017: Brasil Kirin in Brazil, Tuatara craft brewery in New Zealand, Stellenbrau in South Africa, Punch Securisation A in the UK
(comprising around 1,900 pubs) and Lagunitas in the USA. These businesses will be included in the 2018 Annual Report. We opened a new brewery in
East Timor and started to build a greenfield brewery in Mozambique in December 2017, these two breweries will come into the scope of Annual Reporting
the moment it has been in operation for a full year. The term 'production unit' means breweries, cider plants, soft drink plants, malteries, water plants
and combinations of these, at which malt, beer, cider, soft drinks and water are produced. Two packaging material plants are also in the scope of production
units, covering the manufacture of bottles and crates. Other plants have been included too, such as a winery, distillery and ice production facilities.
The content of the report is based on the material aspects for both our Company and our stakeholders and is directly linked to the Brewing a Better
World strategy, our four focus areas and our 2020 commitments. We have selected the non-financial KPIs that are most material, based on the
following criteria:
- The KPI is a Brewing a Better World commitment
- The KPI is a new target we publicly disclosed in our 2016 report
- The KPI is not related to a target but part of one of the Brewing a Better World focus areas and seen as important by our stakeholders
- The combination of KPIs should give a balanced, high level overview of our progress in 2017.
Scope and materiality of indicators are approved on an annual basis by the Disclosure Committee, and may be adjusted once a year with effect as of
the following year.
The main systems used for collection, validation and analysis of reported data:
- Safety data is reported quarterly via a global system named ARISO (Accident Reporting Investigation Software system)
- The collection and validation of environmental data have been integrated in Business Comparison System (BCS). Production units submit
environmental data on a monthly basis in BCS
- The Green Gauge reporting system allows us to monitor and report quarterly progress against 17 key areas, related to our commitments
- Other reporting systems include the HEINEKEN Sourcing database, the Spend Analysis Tool (SAT) and the EcoVadis Platform for Supplier Code
and performance information, and Ethics Point for'SpeakUp'data
- The Annual Sustainability Survey is the source of information for all other data that is not covered by the previously mentioned data sources
29 27 of these indicators are included in this report, the remaining ones are published online by the end of March 2018.
30 End of March 2018.
