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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 indicators.
More information about our actions and progress in 2020, 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 online.
Brewing a Better World Governance
Reporting period and operating companies in scope
Indicators in scope
Heineken N.V.
Annual Report 2020
Introduction
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
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 achievements and key highlights are reported to the Executive Team, the Executive Board and the
Supervisory Board. Material strategy, targets per focus area and 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. The Global
Sustainable Development team of Global Corporate Affairs and Corporate Affairs management at operating
company level oversee the BaBW strategy and drive collaboration and coordination of BaBW 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.
The non-financial indicators in this report cover the performance of all our consolidated operating companies
from 1 January 2020 upto and including 31 December 2020, unless stated otherwise. A different reporting
period is applied to the accident frequency indicator (December 2019 - November 2020) 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. 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 2020 we started reporting on one new site in Ecuador (Guayaquil). No sites have been excluded from BaBW
reporting in 2020.
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 six 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 2020.
Scope and materiality of indicators may be reviewed by the Disclosure Committee and adjusted once a year
with effect as of the following year.
As a part of HEINEKEN Risk management process, we assess main risks that could hinder HEINEKEN in
achieving its strategy and business objectives. This process includes identifying Environmental, Social and
Governance (ESG) related risks. The three key risks are: limited availability of natural resources which could
impact our supply chain continuity; the impact and speed of environmental regulations; and the increased
scrutiny of society on companies. These risks are included in this report.
