9 Every Drop - protecting water resources Water balancing in water-stressed areas llnfeW O O Qs Introduction Report of the Executive Board Report of the Supervisory Board 2020 commitment Aim for significant water balancing by our production units in water-scarce and water-stressed areas Our progress /g\ More to do Our contribution to the SDGs: 6.6 Protect and restore water-related ecosystems We believe we should make a positive contribution to the health of local watersheds where our breweries are located, especially in parts of the world that are water stressed. We are committed to balancing the water we use in water-stressed areas. This means we aim to replenish the water that goes into our products and, in effect, leaves the local water cycle. We do this through projects that replenish water in the same watershed as our operation. Water balancing projects range from nature-based solutions, like restoring wetlands and reforestation, to socially-focused projects such as repairing infrastructure and enabling farmers to use less water. With each watershed being unique, it takes time and effort to identify the right projects and the right partners. By end of 2019, 15 of the 241 production units in scope had started water balancing projects. For more on our water stewardship approach and progress, see our website and case studies - In Mexico, we donated 83 hectares of irrigation rights to NGO Restauremos El Colorado, which will help to bring the river back to life and restore wetland areas in the Colorado River delta. - We began small-scale reforestation projects near our Bedele and Harar breweries in Ethiopia. - We signed an agreement to support social and economic development by creating access to clean water in the Siwa Oasis, one of Egypt's most isolated settlements. - In Spain, the Tajo Watershed authority signed a Letter of Intent supporting our project to restore the wetlands of Belvis del Jarama, near our Madrid Brewery. - We are working with UNIDO to explore potential rainwater harvesting using the roofs of our brewery and neighbouring business premises in Algeria. Projects and partners have been identified for the remaining sites, with most due to start work in 2020. Measuring the outcomes and impacts of water balancing is essential and complex. We use the Volumetric Benefit Accounting (VBA) standard, launched by the World Resources Institute in 2019, across all markets in scope. We continue to carry out local source vulnerability assessments to identify additional breweries that may be in water-stressed locations. Of the three sites in Greece under investigation last year, none were confirmed to be water stressed. Our Cabuyao brewery in the Philippines and Pacatuba brewery in Brazil have been identified as being in water-stressed areas. Today, 29 of the 165 breweries we operate around the world have been identified as water stressed. Looking ahead Every Drop puts the health of local watersheds at the heart of our approach. We will fully balance every litre of water we use in our products in areas that are water stressed. We will collaborate with other water users to create impact at scale for both nature and communities. Financial Statements Sustainability Review Heineken N.V. Annual Report 2019 Other Information Water balancing in Spain HEINEKEN Spain joined forces with the Valencia Regional Government to restore the riparian zone of the Poyo ravine, replacing cane - an invasive, water intensive plant - with indigenous vegetation, Research by the Polytechnic University of Valencia has found the outcomes of this work to be equivalent to saving 400,000 m3 water per year,

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