0 i Q Water balancing in water-stressed areas 129 Every Drop - protecting water resources Looking ahead: Our 2020 commitment: Our 2020 result: Local water balancing initiatives Heineken N.V. Annual Report 2020 Introduction Report of the Executive Board Report of the Supervisory Board Financial Statements Sustainability Review Other Information Aim for significant water balancing by our production units in water- scarce and water- stressed Our contribution to the SDGs: 6.6 Protect and restore water-related ecosystems We are committed to balancing the water we use in water-stressed areas. This means designing projects to replenish the water that goes into our products and leaves the local water cycle. Water balancing projects can range from nature-based solutions, like restoring wetlands and reforestation, to socially-focused projects such as repairing infrastructure to reduce water leakage and enabling farmers to use less water. Projects are enabled through public private partnerships with local governments, NGOs, academia and communities. By the end of 2020, 19 of the 24 production units in scope had started water balancing projects (2019: 15). 10 sites in Mexico, Spain and Egypt have replenished more water in the respective watersheds than their annual beverage production volume. For measuring the outcomes and impacts of water balancing, we use the Volumetric Water Benefit Accounting standard, launched by the World Resources Institute in 2019. Each watershed is unique and it takes time to identify the right projects and partners to address its vulnerabilities. It can be more challenging to identify and form joint actions and collective platforms in some locations than others. Five sites - three in Tunisia, one in Algeria and one in Nigeria - have not started water balancing projects. Barley used for our beers in Egypt is sourced locally and needs irrigation to grow. Since 2015, our team has been working with farmers and research partners to develop and adopt sustainable agriculture practices. By increasing crop yields and reducing the need for irrigation, the water demand per hectare has significantly decreased over the years. In addition to the sustainable barley cultivation project, our team worked with the local government and a technical partner to improve local water infrastructures to reduce water leakages/non revenue water. The impact of these two projects have enabled three sites in Egypt to restore more water to its watershed than the total beverage volume produced. Engagement with local stakeholders is key to improve our understanding of the local challenges. We are committed to establishing water balancing projects in these areas. Our breweries continued to have a significant positive impact on local watersheds. - In Indonesia, efforts to protect the watershed health of the Brantas and Cisadane will be accelerated through a new multi-stakeholder partnership, the Indonesia Water Coalition. Members include local and international NGOs and six other multinational companies aiming to promote water security in Indonesia. - In Ethiopia, we are working with World Vision International to develop a programme that will protect the environment and improve local livelihoods. - In Nigeria, we signed an agreement with the Government of Ogun State in Nigeria to carry out water balancing through reforestation at the Olokemeji Forest. Learn more about this topic on our website More than 100% water balanced in Egypt Our efforts to protect the health of watersheds through collective action will continue and be further supported through the Water Resilience Coalition.

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