^47 Reporting basis and governance of non-financial indicators (continued) Drop the C: reducing CO2 emissions O Q, Heineken N.V. Annual Report 2018 Report of the Executive Board Report of the Supervisory Board Financial Statements Sustainability Review Other Information Water stress Water balancing Water balancing projects Refers to the ability, or lack thereof, to meet human and ecological demand for water. Compared to 'water scarcity', 'water stress' is a more inclusive and broader concept. It considers several physical aspects related to water resources, including water scarcity, but also water quality, environmental flows, and the accessibility of water. Every five years, we assess current and future risks arising from the watersheds in which our breweries are located. In 2015, we undertook a water risk assessment with WWF International across our total operational footprint - fully consolidated as well as Joint Ventures - and on our barley-sourcing areas. Production sites identified as potentially located in a water-stressed area need to complete a Source Vulnerability Assessment (SVA). This enables us to obtain a clear picture of the local water situation, identify relevant stakeholders and explore the need for activities that increase water retention or promote the health of ecosystems. The outcomes serve as a basis for local Source Water Protection Plans, which includes the plans for water balancing. The outcome of the assessment can also indicate that water risks are negligible and that no further actions are required Redressing the balance in water-stressed areas between the amount of water we source from the watershed and the amount that is not returned because it is used in our products, and through evaporation. One of the challenges is mobilising stakeholders, particularly at a government level. To help us, in February 2015, we entered into a partnership with the United Nations Industrial Development Organization (UNIDO). HEINEKEN and UNIDO are jointly organising three-day stakeholder engagement workshops to develop a shared vision on the most important water issues and on collective efforts needed to redress them in priority locations Projects that aim to conserve or restore water quantity or quality in the local watershed and/or improve access to clean water for the local communities. We consider a balancing project started once a Memorandum of Understanding has been signed with one or more partners Carbon footprint Our carbon footprint includes CO2 emissions by all the activities linked to making and selling our products, through the entire value chain. Our model incorporates six phases in the life cycle of a beverage: agriculture, malting and adjuncts, beverage production, packaging, logistics, cooling. This enables scope 1,2 and 3 emissions to be included in the calculation of our carbon footprint Quantity of renewable electrical energy use (kWh) divided by total electrical energy use (kWh). Sources can be: - Own renewable production all electricity generated from renewable resources on-site (wind, solar, biogas) - Imported electricity under green certificates all electricity streams for which certified green electricity is purchased of thermal energy coming Quantity of renewable thermal energy use (MJ) divided by total thermal from renewable sources energy use (MJ). Sources are: biomass, biogas, solar thermal and imported heat (with 100% renewable and 0 g CO2/MJ) of electrical energy coming from renewable sources CO2 emissions in production (Scope 1 and 2, GHG Protocol) CO2 emissions in distribution (Scope 3, GHG protocol) This indicator includes CO2-eq emissions caused by: - direct emissions from combustion of fuels - indirect emissions from imported heat and electricity - emissions from refrigerant losses The reduction in CO2 emissions is being achieved by improving our energy efficiency for both thermal and electrical energy (as part of our TPM framework), and by using more renewables and replacing high CO2 fuels such as fuel oil with lower-emission fuels such as natural gas This indicator refers to CO2-eq emissions from outbound distribution of finished goods and returns of empty packaging material. It includes domestic and export transport by road, rail and sea. Excluded is inbound transport. We focus our actions on reducing the distance we drive, improving fuel efficiency with our transport partners, switching from road to rail and water, and using more carbon-efficient vehicles. As the majority of our transport is outsourced, we work in collaboration with our transport service providers and also with peer companies, customers, fuel providers, industry groups and other key stakeholders CO2 emissions from fridges This indicator refers to CO2-eq emissions as a result of the electricity used (Scope 3, GHG protocol) by beverage fridges (branded and non-branded) invoiced to HEINEKEN in the reporting year

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 148