Reporting basis and governance of non-financial indicators
We continue to disclose our financial and Brewing a Better World performance
combined 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 32 of the most important
non-financial indicators23. More information about our actions and progress in
2018, remaining non-financial KPIs, and background information, can be found
online. This includes datasheets and the GRI Standards table24.
Brewing a Better World Governance
Reporting period and operating companies in scope
Indicators in scope
O Q,
Introduction Report of the Executive Board Report of the Supervisory Board
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. Being one of four HEINEKEN Strategic priorities, progress on Brewing a
Better World achievement and key highlights are reported to the Executive Team, the Executive Board and
the Supervisory Board. Material strategy and targets per focus area are subject to approval by the Executive
Board and the Executive Team. Significant changes in definitions are subject to approval by the Executive
Board/Executive Team. As of 2018, Brewing a Better World focus areas are formally included in HEINEKEN
strategic and annual planning process. 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).
As per the Brewing a Better World governance, accountability for driving our ambition lies with the HEINEKEN
Executive Team globally and with the general manager of each HEINEKEN operating company locally.
Functions (at Global and at operating company level) have the responsibility to define ambition and targets,
implement, deliver, monitor progress and report on their respective indicators.
Global Sustainable Development team and Corporate Affairs management at operating company level oversee
Brewing a Better World strategy and drive collaboration and coordination of activities between involved functions.
Each operating company has a sustainability coordinator and a team engaged in delivering Brewing a
Better World.
Global Sustainable Development team consolidates, analyses and further communicates data reported by
operating companies and global functions on a quarterly basis and in the Annual Report.
Further, we form alliances (tribes) throughout the organisation and with our suppliers to develop new
solutions in the focus areas.
The non-financial indicators in this report cover the performance of all our consolidated operating companies
from 1 January 2018 up to and including 31 December 2018, unless stated otherwise. A different reporting
period is applied to the accident frequency indicator (December 2017 - November 2018) as the current
reporting cycle does not allow for reporting within the timelines required for the Annual Report.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2018
Other Information
Operating companies included in the scope of our reporting are listed in the sustainability section of the
report, unless stated otherwise. The reporting scope depends to a significant extent on the nature of each
indicator and hence exceptions and limitations are explained per each indicator in the document 'Basis
of Preparation - Non-Financial Indicators'. Units (countries, sites, suppliers, brands etc.), which for specific
reasons received formal derogations for compliance with commitments, are excluded from the indicator
scope in consolidation.
Consolidated operating companies include companies fully owned by HEINEKEN, or where HEINEKEN holds
a majority share. Minority joint ventures, associates, licensed partners, export markets are not consolidated,
unless stated otherwise (in a number of indicators). Export markets refer to countries outside the custom
borders of countries where operating companies are residing. 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 consolidated plants include a winery, distillery and ice
production facilities.
New acquisitions and greenfield breweries are included in the consolidated reporting after the first full
calendar year of their operation.
For the first time, we included our greenfield breweries in Philippines and East Timor in this report. In 2018,
we started reporting on eight new sites in Brazil, following the Brasil Kirin activities acquisition, and a new
soft drinks production site in St. Lucia. Seven sites have been excluded from sustainability reporting in 2018,
following changes in ownership and operations.
We opened a new brewery in Meoqui, Mexico and started operations in our greenfield brewery in
Mozambique in 2018 (the official launch will take place in 2019), which will come into the scope of Annual
Reporting the moment they have been in operation for a full year. Craft brewer Lagunitas data will be
consolidated as of 2019, as the company continues its transition to the HEINEKEN procedures and systems.
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
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 2018.
Scope and materiality of indicators are reviewed by the Disclosure Committee, and may be adjusted once
a year with effect as of the following year.
