Reporting basis and governance of non-financial indicators
We continue to disclose our financial and Brewing a Better World performance
in one combined, integrated annual report.
We believe it is important to provide independent confirmation that the
information in this report is reliable and accurate, hence Deloitte provides
limited assurance on 34 of the most important non-financial indicators10.
More information about our actions and progress in 2019, other non-financial
KPIs, and background information, can be found in datasheets and the GRI and
Environmental tables, Basis of Preparation of Non-Financial Information and
other disclosures we make available online11.
Brewing a Better World Governance
Reporting period and operating companies in scope
Indicators in scope
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
Our governance model for Brewing a Better World ensures we deliver against our commitments both
globally and locally. Brewing a Better World progress is one of the key topics of HEINEKEN Executive Team
discussions, chaired by our CEO. Being one of five 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. Significant changes in definitions are subject to approval by the Executive Board. 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 effective implementation of Brewing a
Better World initiatives across the business.
Focus on sustainability is embedded throughout the business, for example driven by Supply Chain (Every Drop
and Drop the C), Procurement (Sustainable Sourcing), HR (Health and Safety) and Commerce (Responsible
Consumption). As a part of 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 operating company level) are responsible for defining ambitions and targets, and
for implementing, delivering, monitoring and reporting progress on their respective indicators.
Corporate Affairs and the Global Sustainable Development team 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 responsibility for sustainability reporting and a team engaged in delivering
Brewing a Better World.
The 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.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019
Other Information
The non-financial indicators in this report cover the performance of all our consolidated operating companies
from 1 January 2019 up to and including 31 December 2019, unless stated otherwise. A different reporting
period is applied to the accident frequency indicator (December 2018 - November 2019) as the current
reporting cycle does not allow for reporting within the timelines required for the Annual Report.
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
of 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,
unless stated otherwise.
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 and distillery.
New acquisitions and greenfield breweries are included in the consolidated reporting after the first full
calendar year of their operation.
In 2019, we started reporting on six new sites in Mexico (Meoqui), USA (Chicago and Petaluma of our craft
brewer Lagunitas), Mozambique (Marracuene), New Caledonia (Monte Dore) and Indonesia (Sampang
Agung soft drink plant). Two production units have been excluded from Brewing a Better World reporting in
2019, following changes in ownership and operations (Cieszyn in Poland and Monterrey ice plant in Mexico).
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, or 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; and/or
- The combination of KPIs should give a balanced, high level overview of our progress in 2019.
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.
