Product safety and integrity Supply chain continuity Information security Digital media Report of the Supervisory Board What could happen Poor quality or contamination of HEINEKEN products, be it accidental or malicious, could result in health hazards, reputational damage, financial liabilities and product recalls. Recent developments Innovations and increased local sourcing have led HEINEKEN to further strengthen controls on ingredients, recipe governance and production processes to maintain food safety and high quality standards. Changes to the environment, such as increased knowledge of the potential food contaminants previously unheard of, growing consumers' concern on food safety and a more complex legal environment in certain jurisdictions, makes control of food safety more challenging. What are we doing to manage this risk HEINEKEN has established a comprehensive Company-wide Quality Assurance programme covering production standards, recipe governance, suppliers' governance and production material risks. HEINEKEN anticipates on new legislation and emerging risks aided by our partners, suppliers and external scientific institutions and assures implementation of measures to avoid such risks. Should a risk materialise, global recall and crisis procedures are in place to mitigate the impact. What could happen Disruptions in the supply chain could lead to inability to deliver products to key customers, revenue loss and brand damage. Significant changes in the availability or price of raw materials, commodities, energy and water may result in a shortage of those resources or increased costs. Recent developments Political instability, terrorism, climate change and, in particular, growing water scarcity (and its effects on crop yield and grain prices and interruption in production), require the market and governments to take measures which may result in additional costs to the business. What we are 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 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. Taking a long-term approach, HEINEKEN has included water stewardship to protect water resources and sustainable sourcing in the priorities of its Brewing a Better World sustainability programme. Explore Further: - Protecting water resources, pages 120, 122-124. - Reducing CO2 emissions, pages 120, 125-130. - Sourcing sustainably, pages 120, 131-133. Financial Statements Sustainability Review Heineken N.V. Annual Report 2018^ 30 Other Information What could happen On social media, concerns related to HEINEKEN or any of its products, even when unfounded, could impact the Company's reputation and the image of its products. HEINEKEN may not be able to control information or respond in a timely manner to reputation threats, which could affect its brand equity and income-generating capacity at scale and at pace. What could happen HEINEKEN's business increasingly relies on IT, both in the office environment as well as in the industrial control domain of our breweries. Failure of systems or security incidents may lead to business disruption, loss of confidential information, breach of data privacy, financial and reputational damage. Recent developments To drive innovation, HEINEKEN's business functions are pursuing digital transformation, delivering new business models, integrating into the digital world and increasing overall interconnectivity. At the same time, online threats grow more sophisticated and potential consequences are more punitive and destructive in nature. In light of the increasing exposure to cybercrime and changing regulations that place stricter security requirements on data processing, we frequently re-assess our security exposure and posture. What we are doing to manage this risk HEINEKEN regularly updates its information security strategy to ensure proportional adaptation of capabilities in response to evolving risks. Security Operations and Information Security Risk Management departments maintain a global cybersecurity framework to address continuity, integrity and confidentiality risks, and perform global monitoring of HEINEKEN's IT landscape, focusing on enhancing the resilience of the IT infrastructure and increasing employee security awareness. Recent developments While robust social media risk management measures are now in place, social media crises increasingly happen via private channels (e.g. WhatsApp) and cannot always be tracked. Moreover, malicious attempts to spread false material becomes ever more sophisticated with substantial spend behind it. What are we doing to manage this risk HEINEKEN has set up continuous monitoring of key social media platforms, in several languages, along with employee training in digital communication. Our incident response system includes a digital dashboard and a dedicated crisis communication team. Learnings from media crises are shared in the organisation to drive continuous improvement.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 31