O O Qs Every Drop - protecting water resources Every Drop 2030 strategy Global ambition, local context Introduction Report of the Executive Board Report of the Supervisory Board 1 Every Drop: thinking differently Water is a vital but undervalued resource. Even though water covers 70% of our planet, only 3% is freshwater, of which 1% is accessible. A growing population, economic development and climate change are making fresh water scarce in many parts of the world. For brewers like HEINEKEN, water is an essential ingredient for brewing and growing our crops. Until now, brewers have mainly focused on the areas they directly control - namely increasing water efficiency and treating wastewater. We will continue to invest in improving processes and technology to drive progress in these areas. However, it is clear that, in water-stressed areas, this is no longer enough. We need to look at our water impact more contextually and - quite literally - think out of the box. That is why our 2030 strategy has the health of local watersheds at its heart. Our aim is to make a positive contribution to secure the health of the watersheds that sustain our operations, specifically in parts of the world that are water stressed. To realise this vision, HEINEKEN has developed a water triangle which comprises three key focus areas for its breweries in water-stressed areas to undertake: water stewardship, water circularity and water efficiency. We will continue to reduce water use and treat wastewater. In areas that are water stressed, our aim will also be to reuse water as much as possible. We will look to return to the local watershed every litre of water that goes into our product and is not given back to nature. We do this, for example, by delivering nature-based solutions like reforestation and wetland restoration. We have defined global commitments for each of these priorities, but we also recognise that every watershed is unique. Local context matters and our breweries in water-stressed areas will develop bespoke action plans to maximise their positive impact on the local watershed and the communities it supports. The need for collective action Many different users tap into shared water resources and maintaining the health of the watershed requires collective effort and co-operation. In Mexico for example, we are working with other companies, NGOs and government institutions to protect the watershed of the San Juan River through the Monterrey Water Fund. In Indonesia, we are part of a water alliance ('Aliansi Air') that is working to conserve water and reduce pollution in the Brantas river basin. HEINEKEN has been a signatory of the UN CEO Water Mandate since 2009 and works in partnership with the United Nations Industrial Development Organization (UNIDO). What about water used in agriculture? According to The World Bank, agriculture uses 70% of the world's available freshwater. Growing crops, mainly barley, accounts for 90% of our water footprint. The good news is that barley is a water-efficient crop. It is commonly grown in moderate climate zones and generally survives on rainfall. Irrigation is needed in some areas in the world and we expect this need to increase due to climate change. We are focused on developing and supporting agricultural practices that allow us to grow more barley with less water in these areas. For more on our water stewardship approach and progress, see our website and case studies Financial Statements Sustainability Review Heineken N.V. Annual Report 2019 Other Information Working together towards a healthy watershed Every watershed is unique in terms of geology, climate, topography and users - so context matters. A healthy watershed requires close co-operation and collaborative activities that reduce shared water risks. Our 2030 Targets^ Water Stewardship Fully balance the water that is used in our products, in water- stressed areas Work collectively with other stakeholders Water Circularity Maximise reuse and recycling in water-stressed areas Treat 100% of wastewater of all breweries Water Efficiency 2.8 litre per litre beer produced, for breweries in water-stressed areas 3.2 litre per litre for all breweries worldwide

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Jaarverslagen | 2019 | | pagina 124